20220419 City Council Agenda Packet
Regular Vernon City Council Meeting Tuesday, April 19, 2022
Page 1 of 8
Agenda City of Vernon
Regular City Council Meeting
Tuesday, April 19, 2022, 9:00 AM
City Hall, Council Chamber
4305 Santa Fe Avenue
Vernon, California
Melissa Ybarra, Mayor
William Davis, Mayor Pro Tem
Leticia Lopez, Council Member
Crystal Larios, Council Member
Judith Merlo, Council Member
MEETING ATTENDANCE PROTOCOLS
Assembly Bill 361 (AB 361) authorizes public meetings to take place via teleconference because
State and Local officials are recommending measures to promote social distancing. Meetings
are conducted in a hybrid format that includes both in-person and Zoom public participation.
The public is encouraged to view the meeting at https://www.cityofvernon.org/webinar-cc or by
calling (408) 638-0968, Meeting ID 827-7935-9188#. You may address the Council via Zoom or
submit comments to PublicComment@cityofvernon.org with the meeting date and item number
in the subject line.
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 Council deliberation on those specific
matters.
PRESENTATIONS
1. City Clerk
Results of the City of Vernon April 12, 2022 General Municipal Election
Recommendation:
Adopt Resolution No. 2022-09 reciting the facts of the General Municipal Election held
on April 12, 2022, declaring the results and such other matters as provided by law.
1. Resolution No. 2022-09
Regular Vernon City Council Meeting Tuesday, April 19, 2022
Page 2 of 8
2. Human Resources
Employee Service Pin Awards for March 2022 Recommendation:
No action required by City Council. This is a presentation only.
3. Human Resources
Proclamation Recognizing Retiring Employee - Charles B. Montoya
Recommendation:
Acknowledge and present a proclamation to retiring employee Charles B. Montoya,
Metering Technician, Senior in recognition of his dedicated service to the City of
Vernon.
1. Proclamation - Charles B. Montoya
4. City Administration
DMV/Donate Life California Month
Recommendation:
Present a proclamation acknowledging the month of April 2022 as "DMV/Donate Life
California Month".
1. Proclamation - CA Donate Life
5. Finance/Treasury
Fiscal Year 2022-2023 Budget Workshop
Recommendation:
No action required by City Council. This is a presentation only.
1. 2022-2023 Budget Summaries
2. FY 2022-23 Proposed Budget
CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with on e motion. Items may be
removed from the Consent Calendar for individual consideration. Removed items will be
considered immediately following the Consent Calendar.
6. City Clerk
Approval of Minutes
Recommendation:
Approve the April 5, 2022 Regular City Council meeting minutes.
1. 20220405 City Council Minutes
7. City Clerk
Claims Against the City
Recommendation:
Receive and file the claim submitted by Dustin Thomas Phillips in the amount of
$18,000.
1. Dustin T. Phillips 20220407
Regular Vernon City Council Meeting Tuesday, April 19, 2022
Page 3 of 8
8. City Clerk Amendment to Vernon Municipal Code Section 3.32.250 Emergency Purchases
Recommendation:
Conduct second reading and adopt Ordinance No. 1279 amending Section 3.32.250
of Title 3 Revenue and Finance of the Vernon Municipal Code regarding emergency
purchases.
1. Ordinance No. 1279
9. Finance/Treasury City Payroll Warrant Register Recommendation:
Approve City Payroll Warrant Register No. 790, for the period of March 1 through
March 31, 2022, totaling $2,614,799.17 and consisting of ratification of direct deposits,
checks and taxes totaling $1,704,566.00 and ratification of checks and electronic fund
transfers (EFT) for payroll related disbursements totaling $910,233.17 paid through
operating bank account.
1. City Payroll Account Warrant Register No. 790
10. Finance/Treasury Operating Account Warrant Register Recommendation:
Approve Operating Account Warrant Register No. 85, for the period of March 20
through April 2, 2022, totaling $6,280,983.97 and consisting of ratification of electronic
payments totaling $4,559,693.50 and ratification of the issuance of early checks
totaling $1,721,290.47.
1. Operating Account Warrant Register No. 85
11. Fire Department Fire Department Activity Report Recommendation:
Receive and file the February 2022 Fire Department Activity Report.
1. Fire Department Activity Report - February 2022
12. Police Department Police Department Activity Report Recommendation:
Receive and file the February 2022 Police Department Activity Report.
1. Police Department Activity Report - February 2022
Regular Vernon City Council Meeting Tuesday, April 19, 2022
Page 4 of 8
13. Public Utilities Agreement for Assignment of Non-Consumptive Water Use Permit with the Water
Replenishment District of Southern California
Recommendation:
A. Find that approval of the proposed action is exempt from California
Environmental Quality Act (CEQA) review because it is an administrative activity
that will not result in direct or indirect physical changes in the environment, and
therefore does not constitute a “project” as defined by CEQA Guidelines Section
15378; and
B. Approve and authorize the City Administrator to execute the Agreement for
Assignment of Non- Consumptive Water Use Permit with the Water
Replenishment District of Southern California, in substantially the same form as
submitted.
1. Agreement for Assignment of Non-Consumptive Water Use Permit
14. Police Department Proposed Military Equipment Use Policy Recommendation:
Receive and file the draft Vernon Police Department Military Equipment Policy and
direct staff to schedule a public hearing for the June 7, 2022 Regular City Council
meeting to consider the proposed policy.
1. Assembly Bill No. 481
2. VPD's Draft Military Equipment Use Policy
15. Police Department Police Department Vehicle Purchase Recommendation:
Approve and authorize the issuance of a purchase order to National Auto Fleet Group
for a 2022 Ford Ranger through the Sourcewell Master Vehicle Contract (091521-NAF)
for approximately $39,000 to replace one patrol vehicle in the Police Department Fleet.
1. National Auto Fleet Group 2022 Ford Ranger Quote
16. Public Utilities Sale of Surplus Vernon Public Utilities Vehicle to Petrelli Electric, Inc. Recommendation:
Approve and authorize the City Administrator to execute th e Purchase and Sale
Agreement with Petrelli Electric, Inc. (Petrelli Electric), in substantially the same form
as submitted, for the sale of one (1) Ford E450 Super Duty Van.
1. Purchase and Sale Agreement
Regular Vernon City Council Meeting Tuesday, April 19, 2022
Page 5 of 8
17. Public Works Change Order No. 1 to Contract No. CS-1349 with EBS General Engineering Inc.,
and Notice of Completion for Americans with Disabilities Act (ADA) Improvements at
the Intersection of Pacific Boulevard / Vernon Avenue and Santa Fe Avenue
Recommendation:
A. Find that the proposed action is categorically exempt under the California
Environmentally Quality Act (CEQA) in accordance with CEQA Guidelines
Section 15301 (Existing Facilities), part (c) (existing highways, streets and
sidewalks), because the project consists of the maintenance, repair, or minor
alteration of existing streets for ADA improvements and involves no expansion
of an existing use;
B. Approve and Authorize the City Administrator to execute Change Order No.1 in
the amount of $18,329.15 for unexpected changed conditions in the ADA
Improvements at the Intersection of Pacific Blvd. / Vernon Ave. and Santa Fe
Ave. Project (CS-1349);
C. Accept the work of EBS General Engineering Inc. as related to City Contract
No. CS-1349; and
D. Authorize the Director of Public Works to execute and submit the Notice of
Completion for the project to the Los Angeles County Recorder’s Office.
1. Change Order No. 1 - City Contract CS-1349
2. Notice of Completion - City Contract CS-1349
18. Public Utilities Blanket Purchase Contract with Cormetech, Inc. Recommendation:
A. Find that the proposed action is categorically exempt from California
Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines
Section 15301, because the project consists of the maintenance, repair or minor
alteration of an existing facility and involves negligible or no expansion of an
existing use; and
B. Authorize issuance of a blanket Purchase Contract in an amount not -to-exceed
$200,000 with Cormetech, Inc., for labor and materials to replace the Select ive
Catalytic Reduction (SCR) catalyst needed at the Malburg Generating Station
(MGS) during the MGS Spring 2022 Outage.
1. Cormetech, Inc. Purchase Contract Cost Breakdown
Regular Vernon City Council Meeting Tuesday, April 19, 2022
Page 6 of 8
19. Public Utilities rPlanet Earth Los Angeles, LLC Request to Consider Items Regarding Electrical
Consumption Hurdles
Recommendation:
A. Approve and authorize the City Administrator to grant the request from rPlanet
Earth Los Angeles, LLC (Customer) to consider that the January 2022
Consumption Hurdle target has been achieved; and
B. Approve and authorize the City Administrator to grant the request from rPlanet
Earth Los Angeles, LLC (Customer) to waive the third hurdle target of 8
megawatts (MW) and to release the final deposit of $416,667 once the third
electrical consumption hurdle of 8MW is met.
1. Letter from rPlanet Earth Los Angeles, LLC, dated January 27, 2022
2. Letter to rPlanet Earth Los Angeles re Consumption Hurdles
3. Resolution No. 2015-57
4. Resolution No. 2016-04
NEW BUSINESS
20. Finance/Treasury Updated Official Statement for City of Vernon Electric System Revenue Bonds, 2022
Series A
Recommendation:
Adopt Resolution No. 2022 -10 authorizing and approving an updated Official
Statement for certain Electric System Revenue Bonds; and authorizing certain other
matters relating thereto.
1. Resolution No. 2022-10
21. Health and Environmental Control Department Single-Use Foodware Accessories and Standard Condiments
Recommendation:
A. Find that the proposed action is exempt from the California Environmental Quality
Act (CEQA), in accordance with CEQA Guidelines Section 15061(b)(3), the
general rule that CEQA only applies to projects that may have a significant ef fect
on the environment; and CEQA Guidelines Section 15308, because the new
regulations, which strengthen requirements for the handling of solid waste,
represent actions by a regulatory agency for the protection of the environment;
B. Waive full reading and introduce and conduct first reading of Ordinance No. 1280
adding Chapter 8.15 to Title 8 Health and Safety to the Vernon Municipal Code
regulating single-use foodware accessories and standard condiments; and
C. Direct staff to schedule second reading and adoption for the May 3, 2020 City
Council meeting.
1. Ordinance No. 1280
Regular Vernon City Council Meeting Tuesday, April 19, 2022
Page 7 of 8
22. Public Utilities Purchase Contract with Performance Contracting, Inc. (PCI) Recommendation:
A. Find that the proposed action is categorically exempt from California
Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines
Section 15301, because the project consists of the maintenance, repair or minor
alteration of an existing facility and involves negligible or no expansion of an
existing use;
B. Find that the best interests of the City are served by a direct award of a purchase
contract to Performance Contracting, Inc. (PCI), without a competitive selection
process pursuant to Section 3.32.110(B)(2) of the Vernon Municipal Code
(VMC);
C. Approve the issuance of a Purchase Contract in an amount not-to-exceed
$313,836 with PCI for scaffolding and insulation services needed at the Malburg
Generation Station (MGS) during the Malburg Spring 2022 Outage (Spring
Outage); and
D. Authorize the City Administrator to execute Attachment A – Amendment to
Purchase Order/Contract (Services) between the City of Vernon and PCI and
related proposal for scaffolding and insulation services, as incorporated in the
Amendment, in substantially the same form as submitted.
1. PCI - Attachment A - Amendment to City Purchase Contract
ORAL REPORTS
City Administrator Reports on Activities and Other Announcements.
City Council Reports on Activities (including AB 1234), Announcements, or Directives to Staff.
ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the
foregoing agenda was posted in accordance with the applicable legal requirements. Regular
and Adjourned Regular meeting agendas may be amended up to 72 hours and Special meeting
agendas may be amended up to 24 hours in advance of the meeting.
Dated this 14th day of April, 2022.
By: __________________________________ Sandra Dolson, Administrative Secretary
Regular Vernon City Council Meeting Tuesday, April 19, 2022
Page 8 of 8
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 2.04.020). 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 on 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 contac t 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 matters 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 minute s 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
Session, the City Attorney will provide an oral report on any reportable matters discussed a nd
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
Submitted by: Lisa Pope
Submitting Department: City Clerk
Meeting Date: April 19, 2022
SUBJECT
Results of the City of Vernon April 12, 2022 General Municipal Election
Recommendation:
Adopt Resolution No. 2022-09 reciting the facts of the General Municipal Election held on April
12, 2022, declaring the results and such other matters as provided by law.
Background:
On November 16, 2021, the City Council adopted Resolution No. 2021-38 calling the General
Municipal Election to be held on April 12, 2022.
On April 12, 2022, the General Municipal Election was held in conformance with the City
Charter, Vernon Municipal Code, California Elections Code and the Federal Voting Rights
Act.
Ballots received as of close of polls on Election Day were canvassed on Election Night. No
additional ballots have been received. If any ballots post-marked by April 12, 2022 are
received by Friday, April 15, 2022, an additional canvass will be conducted on Monday, April
18, 2022 and Exhibit A to the resolution will be updated.
Pursuant to Elections Code Section 10263, the City Council must adopt a resolution reciting
the facts of the election. The Certificate of Canvass, attached to the resolution declaring the
results of the election, provides details of the results, including the total votes cast for each
candidate. The results will be updated and provided for Council approval at its meeting on
April 19, 2022. Following adoption of the resolution reciting the election results, it would be
appropriate to administer the oath of office for this position.
Pursuant to City of Vernon Charter Article III, Chapters 3.5 and 3.6, Mayor Pro Tem William
"Bill" Davis desires not to serve as Mayor, therefore, Council Member Leticia Lopez will serve
as Mayor and Council Member Crystal Larios will serve as Mayor Pro Tem.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Resolution No. 2022-09
RESOLUTION NO. 2022-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON,
CALIFORNIA, RECITING THE FACT OF THE GENERAL MUNICIPAL
ELECTION HELD ON APRIL 12, 2022, DECLARING THE RESULTS AND
SUCH OTHER MATTERS AS PROVIDED BY LAW
SECTION 1. Recitals.
A. A General Municipal Election was held and conducted in the City of Vernon,
California, on Tuesday, April 12, 2022, as required by law.
B. Notice of the Election was given in time, form and manner as provided by law;
candidates were nominated to fill the vacancies as required by law; voting
precincts were properly established; election officers were appointed; and in all
respects the election was held and conducted and the votes were cast, received
and canvassed and the returns made and declared in the time, form and manner
as required by the provisions of the City Charter and Elections Code of the State
of California for the holding of elections in charter cities.
C. The City Clerk canvassed the returns of the election and has certified the results
to the City Council, which certification and results are received, attached, and
made a part hereto as Exhibit A.
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 whole number of ballots legally cast for the General Municipal
Election held on April 12, 2022, was thirty-four (34) ballots cast.
SECTION 4. The City Clerk canvassed the returns of the election and certified the
results to the City Council, which certification and results are received and accepted,
attached and made a part hereto as Exhibit A.
SECTION 5. The names of the persons voted for at the General Municipal Election
for the office of member of the City Council, in order as they appeared on the official ballot,
are as follows:
Melissa Ybarra
Resolution No. 2022-09
Page 2 of 3 _______________________
SECTION 6. The following are declared to be the results of said General Municipal
Election for the office of member of the City Council:
Melissa Ybarra 34 votes
SECTION 7. The City Council of the City of Vernon hereby declares that Melissa
Ybarra, was elected as member of the City Council for the full term of five (5) years.
SECTION 8. The City Clerk shall immediately make and deliver to the person so
elected a Certificate of Election signed by the City Clerk and authenticated.
SECTION 9. The City Clerk shall also administer to the person elected the Oath
of Office prescribed in the Constitution of the State of California and shall have him or her
subscribe to it and file it in the Office of the City Clerk. The person so elected shall then
be inducted into the respective office to which he or she has been elected.
SECTION 10. 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 19th day of April, 2022.
_____________________________
MELISSA YBARRA, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
________________________________
ZAYNAH N. MOUSSA,
Interim City Attorney
EXHIBIT A
CITY OF VERNON
APRIL 12, 2022
GENERAL MUNICIPAL ELECTION
CERTIFICATION OF CANVASS
I, Lisa Pope, City Clerk of the City of Vernon, California, do hereby certify that I have
canvassed the April 12, 2022 General Municipal Election ballots returned as of April 14,
2022, and find the number of votes cast as follows:
TO ELECT ONE
COUNCIL MEMBER
April 12, 2022
Canvass
Total
Melissa Ybarra 34 34
Total Votes 34 34
VOTER TURNOUT
These results are official and reflect all ballots received.
The results will be certified and the new Council Member
sworn in at the Regular City Council meeting on Tuesday,
April 19, 2022.
______________________________
Lisa Pope, City Clerk
April 14, 2022
Registered Voters 129
Voter Turnout 26%
Resolution No. 2022-09
Page 3 of 3
________________________
City Council Agenda Item Report
Submitted by: Veronica Avendano
Submitting Department: Human Resources
Meeting Date: April 19, 2022
SUBJECT
Employee Service Pin Awards for March 2022
Recommendation:
No action required by City Council. This is a presentation only.
Background:
The following employees are eligible to receive their service pin based on the number of years
of service with the City of Vernon:
30 YEARS OF SERVICE
Charles B. Montoya, Metering Technician, Hired March 1992
20 YEARS OF SERVICE
Luis T. Vasquez, Police Officer, Hired March 2022
15 YEARS OF SERVICE
Jorrie V. Estrada, Senior Electrical Test Technician, Hired March 2007
Todd W. Dusenberry, Assistant General Manager of Public Utilities, Hired March 2007
Jeff A. Fraga, Gas Systems Technician, Hired March 2007
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
None.
City Council Agenda Item Report
Submitted by: Lisette Grizzelle
Submitting Department: Human Resources
Meeting Date: April 19, 2022
SUBJECT
Proclamation Recognizing Retiring Employee - Charles B. Montoya
Recommendation:
Acknowledge and present a proclamation to retiring employee Charles B. Montoya, Metering
Technician, Senior in recognition of his dedicated service to the City of Vernon.
Background:
Historically, the City Council has issued proclamations in honor of retiring City employees.
Charles B. Montoya, Metering Technician, Senior will be retiring from the City of Vernon on
April 21, 2022, after providing over thirty (30) years of service to the City and community. Mr.
Montoya was hired as a Meter Reader effective March 16, 1992; effective July 1, 2001,
became a Lead Meter Reader; effective October 16, 2006, became an Electronics Technician;
effective April 20, 2014, became a Metering Technician, and effective February 5, 2018,
became a Metering Technician, Senior.
During his career, Mr. Montoya completed many trainings and workshops, and obtained
various certifications in workplace safety and the electric field. Among his most notable career
accomplishments, Mr. Montoya represented the Vernon Public Utilities Department (VPU) at
the Electric Utility Service Equipment Requirements Committee (EUSERC), between 2007
and 2022. Mr. Montoya’s participation and efforts to support the development of metering and
service delivery equipment requirements promoted safe and cost-effective solutions to serve
industry agencies and their customers while providing direction for the development of future
technologies.
Mr. Montoya played a key role in the metering group by developing standard operating
procedures, coordinating with customer service to ensure customer billing accuracy, and
responding to customer issues promptly at all hours. He was Instrumental in developing and
maintaining compliance with the Spill Prevention Containment and Countermeasures (SPCC)
program at all VPU facilities. Mr. Montoya was also responsible for ensuring the safety of
power plant staff by identifying safety issues, ensuring compliance with safety guidelines, and
inspecting safety systems, personal protective equipment and materials.
In recent years, Mr. Montoya led the effort to develop and implement the Electric Meter
Replacement Program. This 9-year plan to replace manually read meters with remotely read
meters, promotes efficiency, accuracy and safety, and has become instrumental in the daily
operations of the Public Utilities Department. Mr. Montoya successfully completed Phase 1 of
this project, enabling communication between the Customer Service Division and metering
equipment in the field.
During his distinguished career with the City of Vernon, Charles B. Montoya has earned the
deepest respect of his colleagues through his dedication and commitment to the Public Utilities
Department. Charles B. Montoya is an exemplary employee and he will truly be missed. Mr.
Montoya was hired on March 16, 1992, and meets the eligibility requirements under CalPERS
to retire from the City of Vernon effective April 21, 2022.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Proclamation - Charles B. Montoya
i r"....`
~~ ~ ~►
~:- _
~~
A PROC1~~?VIA TION OF THE MA YOR AND THE CITY CO UNCIL OF THE CITY OF
VERNON COMMENDING CHARLES B, MONTOYA FOR HIS 11~ANY YEARS OF
SERVICE TO THE CITY OF VERNON
I~HE~AS, Charles B. Montoya (Brian Montoya) has been employed by the City of Tlernon since March 76, 7992, and has
faithfully served the City of T~ernon for over 30 years; and
WIHEAEAS, Brian Montoya aa~ill retire from the City of Tlernon e~ective ~lpril77, 2022, as the Metering Technician, Senior, for the
Public Utilities Department (UPU); and
WIHEKLAS, during the course of his em~iloyment avith the City of T~ernon, Brian Montoya held the positions of Meter Keader e~fective
March 76, 7992, Lead Meter Keader e~ective Juy ~, 2007, Electronics Technician e~fective October 76, 2006, Metering Technician ~ective
April20, 2074, and Metering Technician, Senior, e~ective February S, 2078; and
WIHEK~AS, during his career Brian Montoya completed many trainin~s and avork,.shops, obtained various certifications in workplace
safety and the electric field, and represented VPU at the Electric Utility Service Equipment Kequirements Committee (EUSEKC) between 2007
and 2022 serving as a key contributor to this utility user's group, su~iporting the development of metering and service delivery equip~aent
requirements promoting safe and cost-~ective solutions to serve industry agencies and their customers avhile providing direction for the development
of future technologies; and
I~HEAE.f~.S, Brian Montoya also played a key role in the meteringgroup by developing standard operating~irocedures, coordinating
with customer service to ensure customer billing accuracy, zvor~ing tirelessly to restore seruice to customers folloaving mechanical and electrical
failures, avorking collaboratively ~arith Vernon business customers to schedule repair and maintenance activities around business operations and
production schedules, and res~ionding to customer issues promptly at all hours; and
WIHEI~AS, Brian aa~as instrumental in developing and maintaining com~iliance with the Spill Prevention Containment and
Countermeasures (SPCC) program at all VPU facilities, ensuring that the power plant sta~avas properly trai~aed and had the tools and materials
necessary to address any spills that could potentially enter the storm drain system and adversely impact the Vernon community or environment; and
WIHEKE.f~.S, the safety of power plant sta~f 'avas overseen by Brian through ident~ing safety issues, ensuring compliance avith safety
guidelines, and inspecting safety systems, personal protective equipment and materials; and
WIHEI~EAS, Brian Montoya vas one of tivo individuals designated as a A.ecycled Dater Users Site Supervisor, receiving cert~cation
through the Sanitation District of Los Angeles, and whose diligence in oversight of the power plant sanitation systems culminated in a nomination
and designation as the Los Angeles Sanitation District and Calfornia Wlater EnvironmentAssociation Facility of the Year~lavard in 2022 for
storm water pollution ~irevention; and
WIHEK~AS, Brian Montoya led the e~ort to develop and implement the Electric Meter Keplacement Program, a nine year plan to
replace manually read meters with remotely read meters which promotes e~ciency, accuracy and safety, and has become instrumental in the daily
operations of the VPU Department. Brian Montoya successfully completed phase one of this project, enabling communication between the
Customer Service Division and metering equipment in the field; and
1~HEKEAS, during his distinguished career with the City of Tlernon, Brian Montoya has avon the deepest respect of his colleagues
through his leadership and his many contributions to the City; and
WIHEAEAS, it is an honor to express our appreciation to Brian Montoya for his exemplary service to the City of Tlernon and wish
Brian good health upon his retirement and for continued success in life's~iursuits
NOi~, THEKEFOA.E, THE MAYOK Ai~TD THE CITY COUNCl'L OF THE CITY OF VEKNON, ON BEHALF
OF ITS EMPLOYEES, RESIDENTS AND BUSINESSES HEKEBY COMMEND AND THANK CKA.KLES B.
MONTOYA FOA HIS ~~g.NY YEAKS OF SEA.VICE TO THE CITY: THIS P~.O~TIOIV IS BEING
PKESENTED TO CHAKLES B. MONTOYA BY THE HONOKAI3LE MA.YOK MELISSA YBA:~ FOK AND ON
BEHALF OF THE CITY COU.NCl'L OF THE CITY OF VEKNON THIS 79T~I DAY OFAPKIL TIRO THOUSAND
.AND TWIEIVTY-TIYIO.
CITY OF VEKNON
MFL1"SSA YBAA.KA, Mayor
City Council Agenda Item Report
Submitted by: Lilia Hernandez
Submitting Department: City Administration
Meeting Date: April 19, 2022
SUBJECT
DMV/Donate Life California Month
Recommendation:
Present a proclamation acknowledging the month of April 2022 as "DMV/Donate Life
California Month".
Background:
Since 2005, OneLegacy on behalf of Donate Life California, has requested the support of
Southern California civic leaders and municipalities to celebrate and encourage the gift of life.
OneLegacy is a non-profit organization dedicated to saving lives through organ, eye and
tissue donation in the seven-county greater Los Angeles area. Donate Life California is the
state-authorized nonprofit organization responsible for managing the organ, eye and tissue
registry. Their mission is to “save lives by inspiring people to sign up with the state organ, eye
and tissue donor registry.” Donate Life California represents the four federally designated
organ recovery organizations (OPOs) in the state of California and is charged with educating
the community about the need and importance for people to register their donation wishes.
Through public awareness and education campaigns, OneLegacy and Donate Life California
inform the public of the need for organ donation and the options available to people who may
consider such action.
Currently, more than 100,000 individuals nationwide and more than 20,000 in California are on
the national organ transplant waiting list, and on average, 17 people die each day while
waiting due to the shortage of donated organs. The need for organ donations among Hispanic
and African American communities is especially urgent. Millions of lives each year are saved
and healed by donors of organs, tissues, marrow and blood. A single individual's donation of
the heart, lungs, liver, kidneys, pancreas and small intestine can save up to eight lives;
donation of tissue can save and heal the lives of up to 50 others; and a single blood donation
can help three people in need.
Over 17 million Californians have signed up with the state-authorized Donate Life California
Donor Registry to ensure their wishes to be organ, eye and tissue donors are honored.
California residents can sign up with the Donate Life California Donor Registry when applying
for or renewing their driver's licenses or ID cards at the California Department of Motor
Vehicles or by signing up at www.donateLlFEcalifornia.org, or www.doneVIDAcalifornia.org.
A proclamation acknowledging the month of April as Donate Life month in the City of Vernon is
desired by the OneLegacy Organization to raise awareness about the importance of being a
registered donor and saving lives. OneLegacy will display the proclamation at their 2022
Donate Life Run/Walk on Saturday, June 4, and will continue to raise awareness about organ
donation through social media and other events. A OneLegacy Ambassador will be present at
the April 19 Council Meeting to accept the proclamation on behalf of Donate Life California.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Proclamation - CA Donate Life
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A PROC TION OF THE MAYOR AND THE CITY COUNCIL OF
THE CITY OF VERNONACKNO WEEDING THE MONTH OF
APRIL 202 AS "DMV/DONA TE LIFE CALIFORNIA MONTH"
I-YIHEKEAS, Donate Life California i~~ the ~~tate-authoritied nonprofit organitiation responsible for
managing the organ, eye and ti~~s-ue donor registry. Their mission is to `~~ave lives by in~_pi~zng people to ~-ign up Zvith
the state organ, eye and ti~~~~ue donor registry ",• and
I-VFIERE~S, organ, eye, ti~~~ue, marr~ou~, and blood donation are life giving ~zct~~ recognitied avorldavide a.,
expre.,~-ion~~ of compassion to those in need; and
I~HERE~S, more than X 00,000 individual• nationwide and more than 20,000 in California are
currently on the national organ transplant waiting li~~t, and on average, ~ 7 people die each day while waiting due to
the ~•hortage ofdonated organ~~; and
WIHEKEAS, the need for organ donations among Hispanic•, Latino, and African ~.merican communities
is e~peczally urgent; and
~[YIHEAEAS, a jingle individual'~~ donation of the heart, lunge, liver, I~idney~; pancrea~~ and ~~mall
intestine can gave up to eight live, donation of ~ti~~~~ue can save and heal the live~~ of ~up to 75 other, and a single
blood donation can he p three people in need; and
I~HFRE~S, organ donors saved more than 40,000 lives la~~t year, the most ever; and
I~HEKEAS, only about half ~of all Californian• are registered with th. e ~~tate-authorised Donate Life
California Donor Kegi.rtry to en~~ure their ~ishe~~ to be organ, eye, and ti~~~ue donor~~ are honored; and
I~HEI~EAS, California residents can sign up with the Donate Life California Donor Registry when
applying for or renewing their driver ~~ licen~~e~~ or ID cards at the California Department of Motor Vehicles or by
signing up atzvzvzv.donateLlFEcalifornia.org or, forSpani~h-~peaker~; ~~~.doneVlD~california.org; and
I~HEKE~S, California re~ident~~ intere~~ted in saving a life through living kidney donation may visit
zvzv~.LivingDonationCalifornia. org; and
I~VHEKE~S, the City of~Vernon zvi.yhes to invite all resident~~ and busine~-s~e~~ within the City of Tlernon
to ac~nou~ledge DMVI Donate Life California Month, and encourage~~ all re~~ident~, employee• and community
member~~ to ~~ign up with the Donate Life California Donor l~egi~~tyy.
NO I~ THEKEFORE, THE MAYOK AND THE CIT. Y CO U~1 CIL O.F THE CITY OF
VEKNON; ON BEH~F O.F ITS EMPLOYEES, KESIDF..NTS AND .B USIIVESSFS
HEREBYACKNOIk'~EDGES THE MONTH O.F~.PRIL 2022 ~S DMV/DONATE LIFE
C.~LI.FOKNIA MONTH. THIS PROCL~T. IO.N IS BEING PK~SEIVTFD TO T..HE ONE
LEGACY OI~G~IZ.~.TION BY T.H..E H0~1OR~.B ~ MAYOR MELISS.~ YBA~R~ FOK
~.ND ON BEH~F O.F THE CITY COUNCIL 0.~ 7`.HF. CITY OF VFK~ION THIS ~9Tx
DAY O.F ~1'RIL TIRO THOUSAND .~IVD TI~F.~1TY-TI-YIO.
CITY OF VEI~NON
By:
MELISSA YBARR~, Mayor
City Council Agenda Item Report
Submitted by: Jessica Alcaraz
Submitting Department: Finance/Treasury
Meeting Date: April 19, 2022
SUBJECT
Fiscal Year 2022-2023 Budget Workshop
Recommendation:
No action required by City Council. This is a presentation only.
Background:
The Budget Workshop presentation allows the City Council to gather an understanding of the
City's operation and intended fiscal direction, as staff addresses Citywide issues, functions,
and needs. Because each department faces unique challenges and identifies its own specific
goals for a given year, collaboration between Finance and the individual departments is
required in the weeks preceding this presentation.
The presentation will focus on the previous year's highlights and the vision for the City
departments as they move forward into the new fiscal year. It is also designed to provide
insight into the Citywide proposed fiscal year budget that will be brought to City Council for
approval in June.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. 2022-2023 Budget Summaries
2. FY 2022-23 Proposed Budget
21-22 22-23 Difference % change
Revenue 68,655,897 70,480,020 1,824,123 2.66%
Grants 7,323,810 7,640,962 317,152 4.33%
Total Available Resources 75,979,707 78,120,982 2,141,275 2.82%
Expenditures 75,979,707 85,012,193 9,032,486 11.89%
Revenues in excess (under)- (6,891,211) (6,891,211)
21-22 22-23 Difference % change
Property Taxes 5,352,693 5,447,460 94,767 1.77%
Parcel Taxes 14,880,061 14,900,000 19,939 0.13%
Sales and Use 15,389,607 15,539,231 149,624 0.97%
Utility Users Tax 11,887,359 12,754,964 867,605 7.30%
Business License Tax 5,474,667 5,584,160 109,493 2.00%
Other Taxes 88,000 83,000 (5,000) -5.68%
License and Permits 1,596,500 2,310,900 714,400 44.75%
Special Assessments 1,201,200 1,203,000 1,800 0.15%
Other Government Revenue 992,755 958,600 (34,155) -3.44%
Charges for Service 875,075 1,193,500 318,425 36.39%
Fines & Forfeitures 155,800 142,200 (13,600) -8.73%
Investment Income 86,700 85,000 (1,700) -1.96%
Other Revenue 1,228,249 944,500 (283,749) -23.10%
Operating Transfer 540,000 635,600 95,600 100.00%
In-lieu Tax 5,093,787 5,430,392 336,605 6.61%
Overhead allocation 3,813,444 3,267,513 (545,931) -14.32%
Federal/State Assistance 7,323,810 7,640,962 317,152 4.33%
Total Revenue 75,979,707 78,120,982 2,141,275 2.82%
21-22 22-23 Difference % change
Salaries & Benefits 35,140,713 36,873,539 1,732,826 4.93%
Maintenance and Operations 28,490,794 29,199,504 708,710 2.49%
Capital Projects & Equipment 12,348,200 18,939,150 6,590,950 53.38%
Total Expenditures 75,979,707 85,012,193 9,032,486 11.89%
21-22 22-23 Difference % change
Salaries 16,775,716 17,300,161 524,445 3.13%
PERS 11,715,376 13,430,557 1,715,181 14.64%
Fringe 6,649,621 6,142,821 (506,800) -7.62%
Total Salaries & Benefits 35,140,713 36,873,539 1,732,826 4.93%
SALARIES & BENEFITS
CITY OF VERNON
GENERAL FUND FY 2022-23
BUDGET SUMMARY
REVENUE
EXPENDITURES
21-22 22-23 Difference % change
Revenue 228,312,828 235,123,835 6,811,007 2.98%
Transfers In 222,978 222,978 - 0.00%
Total Available Resources 228,535,806 235,346,813 6,811,007
Expenditures 232,345,256 255,793,506 23,448,250 10.09%
Revenues in excess (under)(3,809,450) (20,446,693) (16,637,243)
21-22 22-23 Difference % change
Charges for Service 214,076,891 230,053,335 15,976,444 7.46%
Proceeds from Long-Term Debt 13,935,937 5,050,500 (8,885,437) -63.76%
Investment Income 300,000 20,000 (280,000) -93.33%
Transfer In 222,978.00 222,978 - 0.00%
Total Revenue 228,535,806 235,346,813 6,811,007 2.98%
21-22 22-23 Difference % change
Salaries & Benefits 9,732,032 14,304,529 4,572,497 46.98%
Maintenance and Operations 206,086,087 229,744,211 23,658,125 11.48%
Capital Projects & Equipment 16,527,137 11,744,765 (4,782,372) -28.94%
Total Expenditures 232,345,256 255,793,506 23,448,250 10.09%
21-22 22-23 Difference % change
Salaries 6,803,201 9,526,078 2,722,877 40.02%
PERS 2,006,563 3,514,051 1,507,488 75.13%
Fringe 922,268 1,264,400 342,132 37.10%
Total Salaries & Benefits 9,732,032 14,304,529 4,572,497 46.98%
SALARIES & BENEFITS
CITY OF VERNON
ELECTRIC FUND FY 2022-23
BUDGET SUMMARY
REVENUE
EXPENDITURES
21-22 22-23 Difference % change
Revenue 13,473,584 19,152,739 5,679,155 42.15%
Transfers In - - -
Total Available Resources 13,473,584 19,152,739 5,679,155
Expenditures 14,234,891 20,654,441 6,419,550 45.10%
Revenues in excess (under)(761,307) (1,501,702) (740,395)
21-22 22-23 Difference % change
Charges for Service 13,473,584 19,152,739 5,679,155 42.15%
Total Revenue 13,473,584 19,152,739 5,679,155 42.15%
21-22 22-23 Difference % change
Salaries & Benefits 1,033,104 1,136,468 103,364 10.01%
Maintenance and Operations 11,953,809 18,679,995 6,726,186 56.27%
Capital Projects & Equipment 1,025,000 615,000 (410,000) -40.00%
Transfers out 222,978 222,978 - 0.00%
Total Expenditures 14,234,891 20,654,441 6,419,550 45.10%
21-22 22-23 Difference % change
Salaries 709,907 774,588 64,681 9.11%
PERS 213,970 263,716 49,746 23.25%
Fringe 109,227 98,164 (11,063) -10.13%
Total Salaries & Benefits 1,033,104 1,136,468 103,364 10.01%
SALARIES & BENEFITS
CITY OF VERNON
GAS FUND FY 2022-23
BUDGET SUMMARY
REVENUE
EXPENDITURES
21-22 22-23 Difference % change
Revenue 19,916,559 17,655,000 (2,261,559) -11.36%
Transfers In - -
Total Available Resources 19,916,559 17,655,000 (2,261,559)
Expenditures 19,757,710 18,661,137 (1,096,573) -5.55%
Revenues in excess (under)158,849 (1,006,137) (1,164,986)
21-22 22-23 Difference % change
Charges for Service 11,256,300 11,055,000 (201,300) -1.79%
Proceeds from Long-Term Debt 8,660,259 6,600,000 (2,060,259) -23.79%
Total Revenue 19,916,559 17,655,000 (2,261,559) -11.36%
21-22 22-23 Difference % change
Salaries & Benefits 2,234,156 2,344,147 109,991 4.92%
Maintenance and Operations 8,113,295 7,732,675 (380,620) -4.69%
Capital Projects & Equipment 9,410,259 8,584,315 (825,944) -8.78%
Total Expenditures 19,757,710 18,661,137 (1,096,573) -5.55%
21-22 22-23 Difference % change
Salaries 1,498,484 1,495,736 (2,748) -0.18%
PERS 489,948 589,506 99,558 20.32%
Fringe 245,724 258,905 13,181 5.36%
Total Salaries & Benefits 2,234,156 2,344,147 109,991 4.92%
SALARIES & BENEFITS
CITY OF VERNON
WATER FUND FY 2022-23
BUDGET SUMMARY
REVENUE
EXPENDITURES
21-22 22-23 Difference % change
Revenue 460,000 578,400 118,400 25.74%
Transfers In - - -
Total Available Resources 460,000 578,400 118,400
Expenditures 338,500 593,364 254,864 75.29%
Revenues in excess (under)121,500 (14,964) (136,464)
21-22 22-23 Difference % change
Charges for Service 460,000 578,400 118,400 25.74%
Total Revenue 460,000 578,400 118,400 25.74%
21-22 22-23 Difference % change
Salaries & Benefits 15,814 16,864 1,050 6.64%
Maintenance and Operations 272,686 401,500 128,814 47.24%
Capital Projects & Equipment 50,000 175,000 125,000 250.00%
Total Expenditures 338,500 593,364 254,864 75.29%
21-22 22-23 Difference % change
Salaries 9,947 10,146 199 2.00%
PERS 5,170 6,025 855 16.54%
Fringe 697 693 (4) -0.57%
Total Salaries & Benefits 15,814 16,864 1,050 6.64%
SALARIES & BENEFITS
CITY OF VERNON
FIBER OPTIC FUND FY 2022-23
BUDGET SUMMARY
REVENUE
EXPENDITURES
City of Vernon
Proposed
FY 2022-23 Budget
Fund
Audited
Fund Balance
7/1/21
FY21-22
Projected
Revenue
FY21-22
Proj Operating
Expenditures
FY21-22
Proj Revenue
Over Expenditures
FY21-22
Projected
Capital Outlay
FY21-22
Projected
Transfers In
FY21-22
Projected
Transfers Out
FY21-22
Projected
Net Transfers
FY21-22
Proj Fd Balance
6/30/22
General Fund
GF Nonspendable: Inventories 51,672 - 51,672
GF Unassigned 12,769,576 68,690,329 55,550,140 13,140,189 4,443,200 540,000 - 540,000 22,006,565
GF Restricted for:
Employee Flexible Spending 25,090 25,090
Street Improvement 3,601,571 3,601,571
Asset Forfeiture Funds 519,346 519,346
Total Restricted 4,146,007 - - - - - - - 4,146,007
General Fund Grand Total 16,967,255 68,690,329 55,550,140 13,140,189 4,443,200 540,000 - 540,000 26,204,244
Electric Fund
Unrestricted (deficit)(17,598,363) 241,196,001 230,034,566 11,161,436 14,070,899 222,978 540,000 (317,022) (20,824,848)
Net Investment in Capital Assets 124,297,278 124,297,278
Restricted for Debt Service 23,894,665 23,894,665
Electric Fund Total 130,593,580 241,196,001 230,034,566 11,161,436 14,070,899 222,978 540,000 (317,022) 127,367,095
Gas Fund
Unrestricted (deficit)(15,648,284) 16,891,283 15,329,013 1,562,270 475,811 - 222,978 (222,978) (14,784,803)
Net Investment in Capital Assets 15,816,827 15,816,827
Gas Fund Total 168,543 16,891,283 15,329,013 1,562,270 475,811 - 222,978 (222,978) 1,032,024
Water Fund
Unrestricted (deficit)11,615,638 14,916,500 8,882,636 6,033,864 6,250,000 - - - 11,399,502
Net Investment in Capital Assets 7,303,813 7,303,813
Water Fund Total 18,919,451 14,916,500 8,882,636 6,033,864 6,250,000 - - - 18,703,315
Fiber Optics Fund
Unrestricted (deficit)(3,300,914) 436,935 416,042 20,893 285,000 - - - (3,565,021)
Net Investment in Capital Assets 1,024,845 1,024,845
Fiber Optics Fund Total (2,276,069) 436,935 416,042 20,893 285,000 - - - (2,540,176)
VPU Total 147,405,505 273,440,719 254,662,257 18,778,462 21,081,710 222,978 762,978 (540,000) 144,562,258
Grand Total 164,372,760 342,131,048 310,212,397 31,918,651 25,524,910 762,978 762,978 - 170,766,502
CITY OF VERNON
Fiscal 2021-22 Summary of Changes in Fund Balance
1 of 167
Fund
Audited
Fund Balance
7/1/22
FY22-23
Projected
Revenue
FY22-23
Proj Operating
Expenditures
FY22-23
Proj Revenue
Over Expenditures
FY22-23
Projected
Capital Outlay
FY22-23
Projected
Transfers In
FY22-23
Projected
Transfers Out
FY22-23
Projected
Net Transfers
FY22-23
Proj Fd Balance
6/30/23
General Fund
GF Nonspendable: Inventories 51,672 - 51,672
GF Unassigned 22,006,565 77,485,382 66,073,043 11,412,339 18,939,150 635,600 - 635,600 15,115,354
GF Restricted for:
Employee Flexible Spending 25,090 25,090
Street Improvement 3,601,571 3,601,571
Asset Forfeiture Funds 519,346 519,346
Total Restricted 4,146,007 - - - - - - - 4,146,007
General Fund Grand Total 26,204,244 77,485,382 66,073,043 11,412,339 18,939,150 635,600 - 635,600 19,313,033
Electric Fund
Unrestricted (deficit)(20,824,848) 235,123,835 243,413,140 (8,289,305) 11,744,765 222,978 635,600 (412,622) (41,271,541)
Net Investment in Capital Assets 124,297,278 124,297,278
Restricted for Debt Service 23,894,665 23,894,665
Electric Fund Total 127,367,095 235,123,835 243,413,140 (8,289,305) 11,744,765 222,978 635,600 (412,622) 106,920,402
Gas Fund
Unrestricted (deficit)(14,784,803) 19,152,739 19,816,463 (663,724) 615,000 - 222,978 (222,978) (16,286,505)
Net Investment in Capital Assets 15,816,827 15,816,827
Gas Fund Total 1,032,024 19,152,739 19,816,463 (663,724) 615,000 - 222,978 (222,978) (469,678)
Water Fund
Unrestricted (deficit)11,399,502 17,655,000 10,076,822 7,578,178 8,584,315 - - - 10,393,365
Net Investment in Capital Assets 7,303,813 7,303,813
Water Fund Total 18,703,315 17,655,000 10,076,822 7,578,178 8,584,315 - - - 17,697,178
Fiber Optics Fund
Unrestricted (deficit)(3,565,021) 578,400 418,364 160,036 175,000 - - - (3,579,985)
Net Investment in Capital Assets 1,024,845 1,024,845
Fiber Optics Fund Total (2,540,176) 578,400 418,364 160,036 175,000 - - - (2,555,140)
VPU Total 144,562,258 272,509,974 273,724,789 (1,214,815) 21,119,080 222,978 858,578 (635,600) 121,592,762
Grand Total 170,766,502 349,995,356 339,797,833 10,197,524 40,058,230 858,578 858,578 - 140,905,795
CITY OF VERNON
Fiscal 2022-23 Summary of Changes in Fund Balance
2 of 167
General Fund Electric Gas Water Fiber Optics Total City-wide
Total
Operating revenues
Taxes 55,267,415 - - - - - 55,267,415
Special assessments 1,203,000 - - - - - 1,203,000
Licenses and permits 2,310,900 - - - - - 2,310,900
Fines, forfeitures and penalties 142,200 - - - - - 142,200
Investment income (loss)85,000 20,000 - 5,000 - 25,000 110,000
Charges for services 1,193,500 230,053,335 19,152,739 11,050,000 578,400 260,834,474 262,027,974
In-lieu tax transfer in 5,430,392 - - - - - 5,430,392
Overhead allocation in 3,267,513 - - - - - 3,267,513
Other revenues 944,500 - - - - - 944,500
Total operating revenues 69,844,420 230,073,335 19,152,739 11,055,000 578,400 260,859,474 330,703,894
Operating expenditures
General government 16,267,393 - - - - - 16,267,393
Health 2,170,356 - - - - - 2,170,356
Public safety - Police 14,158,563 - - - - - 14,158,563
Public safety - Fire 20,173,035 - - - - - 20,173,035
Public works 11,620,917 - - - - - 11,620,917
Interest payment - 19,597,353 - 575,725 - 20,173,078 20,173,078
Cost of sales - 165,007,882 19,816,463 8,628,897 418,364 193,871,606 193,871,606
Total operating expenditures 64,390,264 184,605,235 19,816,463 9,204,622 418,364 214,044,684 278,434,949
Net operating surplus (deficit)5,454,156 45,468,100 (663,724) 1,850,378 160,036 46,814,790 52,268,946
Capital outlay expenditures 18,939,150 11,744,765 615,000 8,584,315 175,000 21,119,080 40,058,230
Non operating revenues (expenditures)
Proceeds from long-term debt - 5,050,500 - 6,600,000 - 11,650,500 11,650,500
Intergovernmental revenues 7,640,962 - - - - - 7,640,962
Principal retirement - (50,110,000) - (250,000) - (50,360,000) (50,360,000)
Fire - LA County Conversion Costs (1,682,779) - - - - - (1,682,779)
Operating Transfer in 635,600 222,978 - - - 222,978 858,578
Operating Transfer (out)- (635,600) (222,978) - - (858,578) (858,578)
In-lieu tax transfer (out)- (5,430,392) - - - (5,430,392) (5,430,392)
Overhead allocation (out)- (3,267,513) - (622,200) - (3,889,713) (3,889,713)
Total non-operating revenues (expenditures)6,593,783 (54,170,027) (222,978) 5,727,800 - (48,665,205) (42,071,422)
Net increase (decrease)(6,891,211) (20,446,693) (1,501,702) (1,006,137) (14,964) (22,969,496) (29,860,707)
Estimated Beginning Fund Balance 26,204,244 127,367,095 1,032,024 18,703,315 (2,540,176) 144,562,258 170,766,502
Estimated Ending Fund Balance 19,313,033 106,920,402 (469,678) 17,697,178 (2,555,140) 121,592,762 140,905,795
CITY OF VERNON
Fiscal 2022-23 Budget Summary
Business-type Funds
3 of 167
A B B-A
Account Description
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
2021-22
Projection
Budget
2022-23
Increase/
(Decrease)
TAX REVENUE
011.1004.400110 Property Taxes - Current Secured 4,329,523 4,466,933 4,512,796 4,512,796 4,603,052 90,256
011.1004.400210 Property Taxes - Prior Years Secured (5,794) 13,772 (8,831) (8,831) (9,008) (177)
011.1004.400211 Property Taxes - Prior Year Unsecured 4,349 987 2,128 2,128 2,171 43
011.1004.400310 Property Taxes - Real Transfer Tax 206,556 237,532 234,248 234,248 238,933 4,685
011.1004.400500 Property Taxes - Penalties 12,069 8,291 12,706 12,706 12,960 254
011.1004.400700 Property Taxes - Homeowners' Exemption 13,681 11,259 12,780 12,780 13,036 256
011.1004.400820 PSAF - Public Safety Augmentation Fund 1,842 1,989 1,289 1,289 1,315 26
011.1004.401000 Utility Users Tax 11,758,238 12,367,272 11,887,359 12,654,254 12,754,964 867,605
011.1004.401200 Sales and Use Tax 9,841,556 11,482,241 11,027,900 12,108,300 13,675,525 2,647,625
011.1004.401201 District Tax (T&U Tax - Measure V)- 3,247,193 4,692,100 3,998,374 4,240,707 (451,393)
011.1004.401250 Tax Abatement - Sales and Use Tax (283,809) (283,859) (330,393) (2,330,393) (2,377,001) (2,046,608)
011.1004.401600 Administrative Fees - SB2557 (36,833) (38,689) (39,215) (39,215) (39,999) (784)
011.1004.410100 Business Licenses 5,416,628 5,810,837 5,474,667 5,200,000 5,584,160 109,493
011.1004.410300 Franchises and Agreements 79,420 73,959 78,000 - 76,000 (2,000)
011.1004.442001 In-Lieu Taxes - State Motor Vehicle 11,335 11,864 10,973 - 11,000 27
011.1040.400311 Property Taxes - Real-BNSF 624,792 634,639 624,792 624,792 625,000 208
011.1040.400900 Parcel Taxes - Warehouse 11,435,170 12,537,964 12,684,899 12,684,899 12,700,000 15,101
011.1040.400950 Parcel Taxes - Safety 2,102,946 2,113,133 2,195,162 2,195,162 2,200,000 4,838
011.1043.400610 Property Taxes - Prop A Funds 4,059 6,056 5,998 6,000 6,000 2
011.1043.400630 Property Taxes - Prop C Funds 3,367 5,023 4,975 5,000 5,000 25
011.1043.401205 Measure W Local Return (Stormwater)- 718,816 703,000 703,000 703,000 -
011.1043.401206 Measure R Local Revenue 2,521 3,773 3,731 3,731 4,000 269
011.1043.401207 Measure M Local Return 2,837 4,275 4,229 4,229 4,300 71
011.1043.401208 Road Maintenance and Rehabilitation 5,117 5,460 5,363 5,000 5,000 (363)
011.1043.401209 TDA Article 3 - - 5,000 8,570 8,500 3,500
011.1043.407500 State Gas Tax - 2103 2,097 1,999 2,126 2,200 2,200 74
011.1043.407510 State Gas Tax - 2105 1,542 1,517 1,564 1,500 1,500 (64)
011.1043.407600 State Gas Tax - 2106 5,686 5,648 5,766 5,000 5,000 (766)
011.1043.407700 State Gas Tax - 2107 1,949 2,053 1,980 1,600 1,600 (380)
011.1043.407800 State Gas Tax - 2107.5 1,033 992 1,050 1,500 1,500 450
011.1043.410300 Franchises and Agreements 22,819 24,328 10,000 7,000 7,000 (3,000)
011.1060.401205 Measure W Local Return (Stormwater)- 200,000 237,000 - 200,000 (37,000)
TOTAL TAX REVENUE 45,564,696 53,677,258 54,065,142 52,617,619 55,267,415 1,202,273
SPECIAL ASSESSMENTS
011.1060.410310 Solid Waste Franchise Fees 1,432,823 1,524,362 1,200,000 1,200,000 1,200,000 -
011.1060.410320 Solid Waste Franchise Late Fees - - 1,200 3,000 3,000 1,800
TOTAL SPECIAL ASSESSMENTS 1,432,823 1,524,362 1,201,200 1,203,000 1,203,000 1,800
CITY OF VERNON
General Fund Revenues
FY 2022-23
4 of 167
A B B-A
Account Description
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
2021-22
Projection
Budget
2022-23
Increase/
(Decrease)
CITY OF VERNON
General Fund Revenues
FY 2022-23
LICENSES AND PERMITS
011.1004.410212 Alarm Permits 15,600 1,375 10,000 16,000 16,000 6,000
011.1033.410211 Fire Permit Fees 64,180 20,760 - - - -
011.1033.410212 Alarm Permits 1,258 136 - - - -
011.1033.410270 Filming Permits 15,318 16,467 20,000 21,516 20,400 400
011.1033.410271 Special Event Permit Fees 1,206 268 - - - -
011.1041.401650 State Fee - SB1186 8,164 8,177 10,000 9,000 12,000 2,000
011.1041.410210 Building Permit Fees 558,766 710,554 700,000 700,000 1,000,000 300,000
011.1041.410280 Conditional Use Permits (2,430) 37,839 30,000 40,000 40,000 10,000
011.1043.410290 Issuance Fees 47,910 13,363 19,000 22,500 22,500 3,500
011.1060.410100 Business Licenses 499,713 - - - - -
011.1060.410240 Public Health Permits 332,466 624,932 350,000 580,000 580,000 230,000
011.1060.410250 Health Permit Late Fees 1,495 1,004 3,000 - - (3,000)
011.1060.410260 CUPA Permit Fees - 648,202 450,000 620,000 620,000 170,000
011.1060.410265 CUPA Permit Late Fees - - 4,500 - - (4,500)
TOTAL LICENSES AND PERMITS 1,543,645 2,083,076 1,596,500 2,009,016 2,310,900 714,400
FINES, FORFEITURES AND PENALTIES
011.1004.461100 Fines and Penalties 42,531 6,554 12,000 7,000 10,000 (2,000)
011.1031.410480 False Alarm Fees 11,570 6,555 15,000 5,000 10,000 (5,000)
011.1031.420100 Vehicle Code Fines 48,800 22,518 50,000 20,000 40,000 (10,000)
011.1031.420110 Other Vehicle Fines 8,676 6,224 10,000 10,000 10,000 -
011.1031.420130 Vehicle Inspection Fee 2,288 484 2,000 450 1,000 (1,000)
011.1031.420510 Parking Citations 71,445 39,207 30,000 30,000 30,000 -
011.1031.420515 Franchise Towing Fees 11,652 11,896 15,000 15,000 15,000 -
011.1031.420525 Impound Vehicle Release Fee 2,344 2,100 3,000 3,000 3,000 -
011.1031.420530 DUI Fees 7,344 1,872 3,000 4,000 3,000 -
011.1031.420535 Repossessed Vehicle Fee 135 150 300 100 200 (100)
011.1031.461100 Fines and Penalties - 1,261 - - - -
011.1033.461100 Fines and Penalties - 100 - - - -
011.1041.461100 Fines and Penalties 11,303 10,236 15,000 18,000 20,000 5,000
011.1048.461100 Fines and Penalties 465 - 500 - - (500)
011.1060.461100 Fines and Penalties 11,579 - - - - -
011.4031.441013 Forfeiture Funds Revenue 30,850 - - 68,841 - -
TOTAL FINES, FORFEITURES AND PENALTIES 260,983 109,158 155,800 181,391 142,200 (13,600)
INVESTMENT INCOME
011.1004.430110 Investment Income 137,738 70,480 86,700 20,593 85,000 (1,700)
TOTAL INVESTMENT INCOME 137,738 70,480 86,700 20,593 85,000 (1,700)
INTERGOVERNMENTAL
011.1004.408400 Traffic Congestion Relief Program 338 - - - - -
011.1031.466000 P.O.S.T. Reimbursement 26,879 10,869 1,000 1,212 1,500 500
011.1033.467000 Strike Team Overtime Reimbursement 190,574 - - - - -
011.1033.467100 EMS Reimbursement 279,207 86,240 - - - -
011.2003.440100 Grant Revenues - - 86,250 21,925 43,762 (42,488)
011.2031.440100 Grant Revenues 55,935 32,911 110,000 100,000 75,000 (35,000)
011.2033.440100 Grant Revenues 44,044 9,646 - - - -
011.2043.440100 Grant Revenues - 1,048,088 7,000,000 1,500,000 7,000,000 -
011.3031.441010 COPS - SLESF Funds 155,948 156,727 100,000 134,292 100,000 -
011.3040.440100 Grant Revenues - - - - - -
011.3043.440100 Grant Revenues 157,683 - 1,560 - 415,700 414,140
011.3060.440100 Grant Revenues 16,137 20,469 25,000 5,000 5,000 (20,000)
TOTAL INTERGOVERNMENTAL 926,745 1,364,950 7,323,810 1,762,429 7,640,962 317,152
5 of 167
A B B-A
Account Description
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
2021-22
Projection
Budget
2022-23
Increase/
(Decrease)
CITY OF VERNON
General Fund Revenues
FY 2022-23
CHARGES FOR SERVICES
011.1004.466600 Copies and Publications 0 1 - - - -
011.1003.466600 Copies and Publications 95 45 - - - -
011.1040.420520 Community Service Revenues 3,729 - - - - -
011.1060.410421 CalARP Review Fees - Small 1,253 - - - - -
011.1060.410425 CalARP Review Fees -5,012 - - - - -
011.1060.466600 Copies and Publications 15 15 - - - -
011.1031.466600 Copies and Publications 18,089 15,573 18,000 18,000 18,000 -
011.1033.410430 Annual Business Fire Inspection 3,137 56 - - - -
011.1033.410460 Annual Business Fire Re-Inspection - 9 - - - -
011.1033.410470 Five Year Sprinkler System Testing 9,400 3,572 - - - -
011.1033.410480 False Alarm Fees - - - - - -
011.1033.410490 Fire Extinguisher Training 378 - - - - -
011.1033.450110 Fire Service 37,232 - - - - -
011.1033.466200 Plan Check Fees 45,351 14,980 - - - -
011.1033.466600 Copies and Publications 75 15 - - - -
011.1040.466600 Copies and Publications 185 44 - 50 - -
011.1041.466200 Plan Check Fees 285,895 375,163 300,000 400,000 500,000 200,000
011.1041.466220 Green Building Standards Fee 17,841 31,429 30,000 24,000 25,000 (5,000)
011.1041.466600 Copies and Publications - 41 75 - - (75)
011.1043.420520 Community Service Revenues 20,018 10,926 9,000 30,000 30,000 21,000
011.1043.450120 Engineering Inspection Fees 141,600 86,792 50,000 100,000 100,000 50,000
011.1043.466200 Plan Check Fees 106,961 83,709 50,000 100,000 100,000 50,000
011.1043.466230 Annual Fee 2,148 1,156 1,000 - - (1,000)
011.1046.499700 Credit for Garage Work Orders 307,267 374,505 375,000 350,000 400,000 25,000
011.1060.410400 Closure Review Fees 2,508 4,393 4,500 - - (4,500)
011.1060.410410 Plan Check Review Fees 23,438 17,207 10,000 7,000 7,000 (3,000)
011.1060.410416 CUPA Plan Check Review Fees - 4,195 5,000 1,500 1,500 (3,500)
011.1060.410420 CalARP Review Fees - 627 2,500 - - (2,500)
011.1060.461300 Free Sales Certificate Fees - 10,475 20,000 12,000 12,000 (8,000)
011.1060.466700 Backflow Certificates - - - - - -
TOTAL CHARGES FOR SERVICES 1,031,627 1,034,929 875,075 1,042,550 1,193,500 318,425
OTHER REVENUES
011.1004.466900 Miscellaneous Revenues 1,947,980 157,414 267,979 - - (267,979)
011.1026.459030 Group Medical Revenue 376,011 385,075 398,000 376,500 370,000 (28,000)
011.1031.466900 Miscellaneous Revenues 1,148 8,444 3,000 3,000 3,000 -
011.1031.459090 Equipment Replacement Revenue 42,017 - - - - -
011.1033.466900 Miscellaneous Revenues 1,058 492 - - - -
011.1040.466900 Miscellaneous Revenues 276 - - - - -
011.1041.466900 Miscellaneous Revenues 4,416 6,900 7,500 10,000 10,000 2,500
011.1041.468400 Variances - (75) - - 5,000 5,000
011.1043.466900 Miscellaneous Revenues - 7,847 - - - -
011.1043.600910 Other Income 180,830 (7,060) - 5,000 5,000 5,000
011.1048.431000 Rents 264,947 292,288 301,000 301,000 301,000 -
011.1048.466900 Miscellaneous Revenues - 270 270 500 - (270)
011.1060.466900 Miscellaneous Revenues 887 102 - - - -
011.1049.431000 Rents 241,836 250,588 250,500 250,500 250,500 -
OTHER REVENUES 3,061,405 1,102,284 1,228,249 946,500 944,500 (283,749)
OTHER FINANCING SOURCES
011.1004.458000 General City Administrative Service Rev 3,665,551 3,738,862 3,813,444 3,813,444 3,267,513 (545,931)
011.1004.630055 In-Lieu Taxes from Fund 055 4,582,784 4,781,720 5,093,787 5,093,787 5,430,392 336,605
011.1004.670010 Sale of Capital Asset 79 486,009 - - - -
011.1004.690100 Operating Transfers In - - 540,000 540,000 635,600 95,600
TOTAL OTHER FINANCING SOURCES 8,248,413 9,006,591 9,447,231 9,447,231 9,333,505 (113,726)
TOTAL GENERAL FUND 62,208,075 69,973,088 75,979,707 69,230,329 78,120,982 2,141,275
6 of 167
DEPARTMENT SALARIES BENEFITS
SUPPLIES/
SERVICES
CAPITAL
OUTLAY TOTAL
CITY COUNCIL 152,866$ 57,040$ 40,530$ -$ 250,436$
CITY ADMINISTRATION 892,427 485,977 339,610 - 1,718,014
CITY ATTORNEY 408,371 251,972 448,500 - 1,108,843
CITY CLERK 412,629 223,200 97,900 - 733,729
FINANCE 1,402,281 743,077 1,510,505 - 3,655,863
HUMAN RESOURCES 701,641 3,366,843 607,004 - 4,675,488
COMMUNITY PROMOTION - - 500,000 - 500,000
COMMUNITY DEVELOPMENT - - 447,900 - 447,900
INDUSTRIAL DEVELOPMENT - - 158,300 - 158,300
INFORMATION TECHNOLOGY 726,222 355,496 1,937,103 1,295,450 4,314,271
TOTAL GENERAL GOVERNMENT 4,696,437 5,483,604 6,087,352 1,295,450 17,562,843
HEALTH 891,398 446,958 832,000 200,000 2,370,356
TOTAL HEALTH 891,398 446,958 832,000 200,000 2,370,356
POLICE 7,494,847 6,177,670 486,046 265,000 14,423,563
FIRE - 4,863,948 16,991,866 - 21,855,814
TOTAL SAFETY 7,494,847 11,041,618 17,477,912 265,000 36,279,377
ADMIN-ENGR-PLANNING 824,841 522,213 6,750 - 1,353,804
BUILDING DEPARTMENT 718,381 394,336 1,095,730 200,000 2,408,447
STREET OPERATIONS 1,528,066 960,568 2,315,910 14,654,700 19,459,244
CITY GARAGE 375,633 225,724 387,150 800,000 1,788,507
CITY WAREHOUSE 270,042 177,604 13,800 24,000 485,446
CITY HOUSING 201,612 134,614 137,200 125,000 598,426
CITY BUILDINGS 298,904 186,139 845,700 1,375,000 2,705,743
TOTAL PUBLIC WORKS 4,217,479 2,601,198 4,802,240 17,178,700 28,799,617
TOTAL GENERAL FUND 17,300,161$ 19,573,378$ 29,199,504$ 18,939,150$ 85,012,193$
CITY OF VERNON
EXPENDITURE BUDGET
FY 2022-23
7 of 167
FY 2022-23
Dept Project Name FY 22-23 Budget
IT Microsoft Enterprise Agreement (3 years)120,000
IT Servers 40,000
IT Munis Financials 332,300
IT EnerGov 553,800
IT DHD 119,350
IT Utility Billing 130,000
1,295,450
HEALTH Three (3) Nissan Leaf 200,000
POLICE One (1) New Patrol Vehicle: Chevy Tahoe 55,000
POLICE Office Furniture for Records Division and Report Writing Room 60,000
POLICE Bi-Directional Amplifier 100,000
POLICE Emergency Equipment Package for one (1) New Patrol Vehicle 20,000
POLICE Speed Trailer 15,000
POLICE Six (6) Flock Cameras 15,000
265,000
PUBLIC WORKS Four (4 ) Trucks for Inspectors and Code Enforcment 200,000
PUBLIC WORKS 1 F-150 Lighting EV Engineering Pool Truck 50,000
PUBLIC WORKS 1 F-150 lighting pickup truck Street Crew 50,000
PUBLIC WORKS 1 Sign Truck Street Crew 100,000
PUBLIC WORKS 1 Utility Truck 80,000
PUBLIC WORKS 2 Dump Trucks 180,000
PUBLIC WORKS Pavement Management Plan Implementation 4,000,000
PUBLIC WORKS Gateway Arch 500,000
PUBLIC WORKS Center Median Entry monuments 500,000
PUBLIC WORKS Striping 200,000
PUBLIC WORKS Sign Shop equipment and materials 45,000
PUBLIC WORKS Warning Devices (lighted signs/crosswalks etc.)120,000
PUBLIC WORKS Railroad Spur + Vacant Lot Clean-up 90,000
PUBLIC WORKS Infiltrating Tree Boxes + Trees 474,000
PUBLIC WORKS Annual Implementation 250,000
PUBLIC WORKS Safe Clean Drinking Water to Make CB Repairs 100,000
PUBLIC WORKS Broom Bear Sweeper 500,000
PUBLIC WORKS Atlantic Blvd Bridge Widening over LA River - Design and Right of Way 7,000,000 *
PUBLIC WORKS California High Speed Rail Project 110,000 *
PUBLIC WORKS HSIP funded Cycle 9 (Signal Balls/Dyrnamic Speed Warnings)305,700 *
14,854,700
CITY GARAGE Fuel Pumps and Awning + CNG 750,000
CITY GARAGE Fueling System 50,000
800,000
CITY WAREHOUSE Delivery Vehicle 24,000
CITY HOUSING Remodeling 125,000
125,000
CITY BUILDINGS Finance/City Attorney/ PW/ City Clerk 300,000
CITY BUILDINGS First floor of Parking Structure PD Request 300,000
CITY BUILDINGS Monitors,mics, cameras, table, chairs 50,000
CITY BUILDINGS Update PD break room 50,000
CITY BUILDINGS City Hall Energy Management System 400,000
CITY BUILDINGS City Hall Plaza Design 75,000
CITY BUILDINGS Construction of recycle yard at new location 200,000
1,375,000
Funded by Grants 7,415,700 *
Funded by GF 11,523,450
Total 18,939,150
CITY OF VERNON
General Fund Capital Outlay Details
8 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1001 CITY COUNCIL
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES 132,321$ 147,895$ 156,775$ 152,866$ (3,909)$
BENEFITS 58,832 70,670 93,463 57,040 (36,423)
SUPPLIES/SERVICES 20,373 1,860 40,230 40,530 300
TOTAL EXPENSES 211,527$ 220,425$ 290,468$ 250,436$ (40,032)$
CAPITAL:
EXPENDITURES -$ -$ 30,000$ -$ (30,000)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budgeted Budgeted Budgeted Proposed (Decrease)
Councilmembers 4.0 117,079$ 121,773$ 125,420$ 121,861$ (3,559)$
Mayor 1.0 29,270 30,444 31,355 31,005 (350)
DEPARTMENT TOTALS 5.0 146,349$ 152,217$ 156,775$ 152,866$ (3,909)$
9 of 167
CITY OF VERNON
Fund 011 Department 1001 - General Fund - City Council Department
Budget Detail
2022-2023
DEPARTMENT:
011.1001 CITY COUNCIL
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES
011.1001.501010 Salaries - Regular 132,321$ 147,590 156,775$ 152,326$ (4,449)$
011.1001.501012 Salaries - Premiums - 306 - 540 540
132,321$ 147,895$ 156,775$ 152,866$ (3,909)$
BENEFITS
011.1001.502020 Retirement 23,987$ 31,504 53,727$ 37,180$ (16,547)$
011.1001.502030 Insurance Premiums - Medical 30,511 36,365 37,463 13,866 (23,597)
011.1001.502060 FICA Taxes 4,334 2,801 2,273 5,994 3,721
58,832$ 70,670$ 93,463$ 57,040$ (36,423)$
SUPPLIES/SERVICES
011.1001.520000 Supplies 1,014$ 691 1,780$ 2,080$ 300$
011.1001.596500 Travel 19,359 1,170 38,450 38,450 -
011.1001.596550 Memberships - - - - -
20,373 1,860 40,230 40,530 300
TOTAL EXPENSES 211,527$ 220,425$ 290,468$ 250,436$ (40,032)$
CAPITAL
EXPENDITURES
011.1001.900000 Capital Outlay -$ - 30,000$ -$ (30,000)$
-$ -$ 30,000$ -$ (30,000)$
10 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1001 - CITY COUNCIL
2022-2023
Account No. 520000 - Supplies
FY2022 FY2023
Name Description Budget Budget
1 Photography Professional Photo Session (if a new Council member is elected at the April 2022
election, a professional photo of him/her will be needed for the hallway wall)
500$ 500$
2 SILVA'S Business Cards (if any reorganizational changes occur as a result of the April 2022
election, new business cards may be needed)
400 400
3 STAPLES General Office/Desk Supplies 150 150
4 Huntington Park Rubber Stamp Company Desktop Name Plates (if any reorganizational changes occur as a result of the April 2022
election, a new set of name plates may be needed for Council Office)
30 30
5 Vendor Name City of Vernon Polos 700 1,000
1,780$ 2,080$
Account No. 596500 - Travel
FY2022 FY2023
Name Description Budget Budget
1 League of Cities Conference/Seminar 12,500$ 12,500$
2 CCCA Annual Legislative Orientation Tour Legislative Orientation Tour/Fall Seminar/Municipal Seminar 9,700 9,700
3 ICA Seminars/Meetings Winter Seminar/Summer Seminar 10,000 10,000
4 Miscellaneous Conference Attendance 5,000 5,000
5 Mileage Reimbursement 1,250 1,250
38,450$ 38,450$
Account No. 900000 - Capital Outaly
FY2022 FY2023
Name Description Budget Budget
1 PLACEHOLDER ELECTRIC VEHICLE 30,000$
30,000$ -$
11 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1002 CITY ADMINISTRATION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES 567,002$ 600,091$ 706,238$ 892,427$ 186,189$
BENEFITS 239,830 256,753 301,253 485,977 184,724
SUPPLIES/SERVICES 67,360 99,007 237,449 339,610 102,161
TOTAL EXPENSES 874,192$ 955,851$ 1,244,940$ 1,718,014$ 473,074$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budgeted Budgeted Budgeted Proposed (Decrease)
Administrative Analyst 1.0 98,483$ 107,554$ 110,781$ 112,996$ 2,215$
Administrative Assistant 1.0 22,558 23,463 24,166 51,765 27,599
Administrative Assistant, Senior 1.0 27,420 29,945 32,385 59,924 27,539
Assistant to the City Administrator 1.0 - - - 126,078 126,078
City Administrator 1.0 317,618 330,353 340,265 347,070 6,805
Deputy City Administrator 0.0 - - - 180,094 180,094
Executive Assistant to the City Administrator 1.0 98,483 103,932 107,005 - (107,005)
Public Information Officer 0.0 - - - - -
Utilities Compliance Administrator 0.0 - - 81,836 - (81,836)
Overtime 1,500 1,500 5,500 3,500 (2,000)
Payout (vacation and sick excess hours)4,000 - 4,300 11,000 6,700
DEPARTMENT TOTALS 6.0 570,062$ 596,747$ 706,238$ 892,427$ 186,189$
12 of 167
CITY OF VERNON
Fund 011 Department 1002 - General Fund - City Administration Department
Budget Detail
2022-2023
DEPARTMENT:
011.1002 CITY ADMINISTRATION
B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES
011.1002.501010 Salaries - Regular 551,169$ 579,427 866,246$ 176,583$
011.1002.501012 Salaries - Premium 6,273 9,924 22,681 11,606
011.1002.501020 Salaries - O.T.9,560 10,740 3,500 (2,000)
567,002 600,091 892,427 186,189
BENEFITS
011.1002.502020 Retirement 155,710$ 173,120 348,508$ 145,260$
011.1002.502030 Insurance Premiums - Medical 75,665 74,451 124,529 36,764
011.1002.502060 FICA Taxes 8,455 9,182 12,940 2,700
239,830 256,753 485,977 184,724
SUPPLIES/SERVICES
011.1002.520000 Supplies 4,425$ 9,710 13,260$ 250$
011.1002.520010 Supplies - IT 2,587 - - -
011.1002.550000 Advertisement / Promotion 19,960 23 - -
011.1002.570000 Vehicle Expense 2,109 3,923 8,400 -
011.1002.595210 Professional Services - IT 300 - - -
011.1002.596200 Professional Services - Other 8,344 61,943 275,000 100,000
011.1002.596500 Travel 14,484 6,867 16,500 -
011.1002.596550 Memberships 15,151 16,541 24,350 1,911
011.1002.596700 Training - - 2,100 -
67,360 99,007 339,610 102,161
TOTAL EXPENSES 874,192$ 955,851$ 1,718,014$ 473,074$
13 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1002 - CITY ADMINISTRATION
2022-2023
Account No. 501020 - Overtime
Detailed FY2022 FY2023
Name Description Budget Budget
1 Executive Assistant to City Administrator Overtime 2,000$ -$
2 Sr Administrative Assistant Overtime 1,500 1,500
3 Administrative Analyst Overtime 2,000 2,000
5,500$ 3,500$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Warehouse Bottled Water, Copy Paper, Coffee 950$ 950$
2 Office Depot General office supplies 1,500 1,500
3 Huntington Park Rubber Stamp Name Plates 200 200
4 Fed Ex Mail 110 110
5 Various Vendors City Hall Lobby Re-design 10,000 10,000
6 Vendor TBD Employee Polo Shirts 250 500
13,010$ 13,260$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Admin General Use Vehicle Gas Usage 1,200$ 1,200$
2 City Admin General Use Vehicle Garage Work Orders 3,000 3,000
3 City Administrator Vehicle Gas Usage 1,200 1,200
4 City Administrator Vehicle Garage Work Orders 3,000 3,000
8,400$ 8,400$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Legislative/Regulatory Advocacy Firm Firm to consult on legislative matters/issues of
importance to Vernon
75,000$ 75,000$
2 Nielsen Merksamer Firm to consult on specialized legislative matters 100,000$
3 TBD City Strategic Rebrand 100,000$ 100,000$
175,000$ 275,000$
14 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1002 - CITY ADMINISTRATION
2022-2023
Account No. 596500 - Travel
Detailed FY2022 FY2023
Type Description Budget Budget
1 Air, Hotel, Meals, Etc.Various Seminars/Meetings 5,500$ 5,500$
2 Miscellaneous Conference Attendance 10,000 10,000
3 Mileage Reimbursement 1,000 1,000
16,500$ 16,500$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 Gateway Cities Council of Governments Membership Dues 13,000$ 13,000$
2 California Contract Cities Association Membership Dues 6,000 6,000
3 League of California Cities - L.A. County Division Membership Dues 1,000 1,000
4 Independent Contract Cities Membership Dues 550 550
5 League of CA Cities Membership Dues 74 100
6 National League of Cities Membership Dues 300 300
7 Southern California Association of Governments Membership Dues 115 2,000
8 ICMA Membership Dues 1,400 1,400
22,439$ 24,350$
Account No. 596700 - Training
Detailed FY2022 FY2023
Type Description Budget Budget
1 Fred Pryor Seminars Performance & Skill Development 600$ 600$
2 Workshops/Conferences Skill Development 1,500 1,500
2,100$ 2,100$
15 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1024 CITY ATTORNEY
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES 1,298,738$ 310,903$ 325,513$ 408,371$ 82,858$
BENEFITS 307,638 167,834 196,755 251,972 55,217
SUPPLIES AND SERVICES 400,595 515,707 698,500 448,500 (250,000)
TOTAL EXPENSES 2,006,972$ 994,444$ 1,220,768$ 1,108,843$ (111,925)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budgeted Budgeted Budgeted Proposed (Decrease)
City Attorney 1.00 307,293$ -$ -$ 290,875$ -$
Legal Administrative Analyst 1.00 93,793 102,432 110,780 112,996 2,216
Senior Deputy City Attorney - 380,695 203,348 209,433 - (209,433)
Overtime 500 500 500 500 -
Payout (excess vacation and sick hours)3,000 3,200 4,800 4,000 (800)
DEPARTMENT TOTALS 2.00 785,281$ 309,480$ 325,513$ 408,371$ (208,017)$
16 of 167
CITY OF VERNON
Fund 011 Department 1024 - General Fund - City Attorney Department
Budget Detail
2022-2023
DEPARTMENT:
011.1024 CITY ATTORNEY
B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES
011.1024.501010 Salaries - Regular 671,364$ 291,455 379,553$ 75,103$
011.1024.501012 Salaries - Premiums 627,375 19,448 28,318 7,755
011.1024.501020 Salaries - O.T.- - 500 -
1,298,738 310,903 408,371 82,858
BENEFITS
011.1024.502020 Retirement 225,117$ 129,394 211,219$ 55,765$
011.1024.502030 Insurance Premiums - Medical 63,862 35,605 31,832 251
011.1024.502060 FICA Taxes 18,659 4,387 5,921 1,201
011.1024.502070 Unemployment - (1,552) 3,000 (2,000)
307,638 167,834 251,972 55,217
SUPPLIES/SERVICES
011.1024.510000 Office Supplies 660$ 664 1,000$ -$
011.1024.520000 Supplies 1,574 257 1,500 -
011.1024.593200 Professional Services - Legal 379,534 507,090 433,000 (250,000)
011.1024.596200 Professional Services - Other 518 - 2,000 -
011.1024.596500 Travel 6,295 - 2,000 -
011.1024.596550 Memberships 2,209 708 1,000 -
011.1024.596600 Books & Publications 8,280 6,364 6,000 -
011.1024.596700 Training 1,525 625 2,000 -
400,595 515,707 448,500 (250,000)
TOTAL EXPENSES 2,006,972$ 994,444$ 1,108,843$ (111,925)$
17 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1024 - CITY ATTORNEY
2022-2023
Account No. 510000 - Office Expenses
Detailed FY2022 FY2023
Name Description Budget Budget
1 Fed Ex, UPS Shipping Services 1,000$ 1,000$
1,000$ 1,000$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Office Depot General Office Supplies 1,500$ 1,500$
1,500$ 1,500$
Account No. 593200 - Professional Services Legal
Detailed FY2022 FY2023
Name Description Budget Budget
1 Interim City Attorney Contract Retainer & Additional Legal Work 400,000$ -$
2 Burhenn & Gest Various Pending Legal Matters 5,000 5,000
3 Richards Watson & Gershon Various Pending Legal Matters 2,000 2,000
4 Office of Administrative Hearings ("OAH")Various Pending Legal Matters 1,000 1,000
5 Stream Kim Hicks Wrage & Alfaro, PC Various Pending Legal Matters 75,000 150,000
6 Jones & Mayer Various Pending Legal Matters - 50,000
7 Burke Williams & Sorensen, LLP Various Pending Legal Matters 100,000 100,000
8 Other Legal Contingencies 100,000 125,000
683,000$ 433,000$
Account No. 596200 - Professional Services - Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Vendors Attorney Filing Services 1,000$ 1,000$
2 PACER Access to court records 500 500
3 Other Administrative/Filings 500 500
2,000$ 2,000$
18 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1024 - CITY ATTORNEY
2022-2023
Account No. 596500 - Travel
Detailed FY2022 FY2023
Type Description Budget Budget
1 Conferences and Meetings Legal Conferences Travel/Lodging 2,000$ 2,000$
2,000$ 2,000$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 California State Bar Attorneys Memberships 1,000$ 1,000$
1,000$ 1,000$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 Thomson Reuters (WestLaw)Legal Subscriptions 3,000$ 3,000$
2 Daily Journal Legal Journal 1,000 1,000
3 Various Legal Publications Legal Books and Publications 2,000 2,000
6,000$ 6,000$
Account No. 596700 - Training
Detailed FY2022 FY2023
Type Description Budget Budget
1 League of California Cities Legal Conferences Registration Fees 1,000$ 1,000$
2 City Attorneys Association of Los Angeles County Legal Conferences Registration Fees 1,000 1,000
2,000$ 2,000$
19 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1003 CITY CLERK
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 95$ 45$ 86,250$ 43,762$ (42,488)$
EXPENSES:
SALARIES 464,118$ 337,028$ 381,162$ 412,629$ 31,467$
BENEFITS 137,948 143,442 187,528 223,200 35,672
SUPPLIES/SERVICES 50,560 40,161 199,313 97,900 (101,413)
TOTAL EXPENSES 652,626$ 520,632$ 768,003$ 733,729$ (34,274)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budgeted Budgeted Budgeted Proposed (Decrease)
Administrative Assistant 0.0 -$ -$ -$ -$ -$
Administrative Secretary 1.0 64,983 70,830 76,480 81,804 5,324
City Clerk 1.0 206,239 184,494 204,286 218,410 14,124
Deputy City Clerk 1.0 - - 95,696 107,615 11,919
Records Management Assistant 0.0 88,188 91,724 - - -
Overtime 1,500 1,500 1,500 1,500 -
Payout (vacation and sick excess hours)3,000 - 3,200 3,300 100
DEPARTMENT TOTALS 3.0 363,910$ 348,548$ 381,162$ 412,629$ 31,467$
-$ -$ 8.3%
20 of 167
CITY OF VERNON
Fund 011 Department 1003 - General Fund - City Clerk Department
Budget Detail
2022-2023
DEPARTMENT:
011.1003 CITY CLERK
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Actuals
as of 1/31/22
Forecast
6/30/22
%
Used
Budget
2022-23
Increase/
(Decrease)
REVENUES
011.1003.466600 Copies and Publications 95$ 45 -$ 75$ 0.00%-$
011.2003.440100 Grant Revenues - - 86,250 - 21,925 25.42%43,762 (42,488)
95 45 86,250 75 21,925 25.42%43,762 (42,488)
SALARIES
011.1003.501010 Salaries - Regular 324,380$ 318,480 366,052$ 161,154$ 279,700$ 76.41%397,165$ 31,113$
011.1003.501012 Salaries - Premiums 139,426 18,099 13,610 5,489 9,712 71.36%13,964 354
011.1003.501020 Salaries - O.T.312 450 1,500 592 1,490 99.33%1,500 -
464,118 337,028 381,162 167,235 290,902 76.32%412,629 31,467
BENEFITS
011.1003.502020 Retirement 90,527$ 95,417 123,442$ 60,336$ 94,444$ 76.51%161,366$ 37,924$
011.1003.502030 Insurance Premiums - Medical 40,750 43,224 58,559 19,813 33,029 56.40%55,851 (2,708)
011.1003.502060 FICA Taxes 6,670 4,802 5,527 2,379 4,132 74.76%5,983 456
137,948 143,442 187,528 82,528 131,605 70.18%223,200 35,672
SUPPLIES/SERVICES
011.1003.520000 Supplies 3,957$ 3,993 6,000$ 1,846$ 4,500$ 75.00%6,000$ -$
011.1003.550000 Advertisement/Promotion 9,796 4,065 6,000 1,515 4,500 75.00%6,000 -
011.1003.593200 Professional Services - Legal 1,078 - - - 0.00%- -
011.1003.596200 Professional Services - Other 26,785 28,957 39,600 26,033 39,600 100.00%39,000 (600)
011.1003.596300 Election Costs 7,843 2,766 25,000 623 55,000 220.00%25,000 -
011.1003.596500 Travel 592 - 4,200 - 1,000 23.81%4,200 -
011.1003.596550 Memberships 475 290 1,200 200 1,200 100.00%1,200 -
011.1003.596700 Training 35 90 9,500 - 1,000 10.53%9,500 -
011.1003.594000 Emegency Management Services - - 107,813 16,743 48,168 44.68%7,000 (100,813)
50,560 40,161 199,313 46,960 154,968 77.75%97,900 (101,413)
TOTAL EXPENSES 652,626$ 520,632$ 768,003$ 296,724$ 621,325$ 80.90%733,729$ (119,250)$
21 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1003 - CITY CLERK
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Huntington Park Rubber Stamp Name Plates 1,000$ 1,000$
2 Office Depot / FedEx Office Supplies 4,000 4,000
3 Passport Supplies Photo paper, equipment 1,000 1,000
6,000$ 6,000$
Account No. 550000 - Advertisement/Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 Los Angeles Wave Public Notifications 5,000$ 5,000$
2 City Clerk Department Outreach Elections, Community, etc.1,000 1,000
6,000$ 6,000$
Account No. 596200 - Professional Services - Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Williams Records Management Document storage - City wide 21,600$ 21,000$
2 Quality Code Publishing Municipal Code codification updates 16,000 16,000
3 Vernon City Library Redevelop COVL Plan 1,000 1,000
4 Records Management Program Development Ongoing Records Management &
Annual Rec's Ret. Sched. Updates
1,000 1,000
39,600$ 39,000$
Account No. 596300 - Election Costs
Detailed FY2022 FY2023
Name Description Budget Budget
1 General Municpal Election and Potential Special Municipal
Election
Election Consultant, Materials,
Supplies, & County Services
25,000$ 25,000$
25,000$ 25,000$
22 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1003 - CITY CLERK
2022-2023
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 Conferences/Continuing Education Travel, per Diem, Mileage & Lodging 4,200$ 4,200$
4,200$ 4,200$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 IIMC Annual Membership Dues 500$ 500$
2 ARMA Annual Membership Dues 300 300
3 CCAC Annual Membership Dues 400 400
1,200$ 1,200$
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Providers Mandated Training & Continuing Education 9,500$ 9,500$
9,500$ 9,500$
Account No. 594000 - Emergency Management Services
Detailed FY2022 FY2023
Name Description Budget Budget
1 Hazarad Mitigation Grant Program Admnistrations, consulting & other fees 86,250$ 32,822$
2 Hazarad Mitigation Grant Program Local funding match 25% of grant 21,563 10,941
107,813$ 43,762$
23 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1004 FINANCE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 41,741,362$ 46,654,445$ 47,392,417$ 48,232,320$ 839,903$
EXPENSES:
SALARIES 1,249,622$ 1,174,451$ 1,379,050$ 1,402,281$ 23,231$
BENEFITS 527,073 531,213 684,892 743,077 58,185
SUPPLIES/SERVICES 1,415,144 1,206,055 1,354,949 1,510,505 155,556
TOTAL EXPENSES 3,191,839$ 2,911,719$ 3,418,891$ 3,655,863$ 236,972$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budgeted Budgeted Budgeted Proposed (Decrease)
Account Clerk 0.0 108,567$ 115,576$ -$ -$ -$
Accountant 1.0 - - 74,980 80,304 5,324
Accountant, Senior 0.0 93,793 102,432 - - -
Assistant Buyer 1.0 74,990 81,758 84,166 85,819 1,653
Assistant Finance Director 0.0 194,990 158,906 - - -
Business and Account Supervisor 1.0 140,076 145,633 149,957 152,925 2,968
Business License Clerk 0.0 63,483 51,735 - - -
Buyer 1.0 90,827 94,409 97,196 99,110 1,914
Deputy City Treasurer 1.0 160,419 166,851 171,857 175,293 3,436
Director of Finance/City Treasurer 1.0 241,811 218,289 235,645 251,996 16,351
Finance Manager 1.0 - - 134,654 144,214 9,560
Finance Specialist 2.0 - - 111,903 163,471 51,568
Finance Specialist, Senior 1.0 - - 69,509 - (69,509)
Financial Services Admnistrator 1.0 - - 134,654 137,345 2,691
Payroll Specialist 1.0 74,990 77,937 - 81,804 81,804
Payroll Technician, Senior 0.0 - - 80,229 - (80,229)
Risk Management Assistant 0.0 63,472 69,180 - - -
Overtime 5,000 5,000 5,000 5,000 -
Payout (vacation and sick excess hours)22,000 22,800 29,300 25,000 (4,300)
DEPARTMENT TOTALS 12.0 1,334,418$ 1,310,506$ 1,379,050$ 1,402,281$ 23,231$
24 of 167
CITY OF VERNON
Fund 011 Department 1004 - General Fund - Finance Department
Budget Detail
2022-2023
DEPARTMENT:
011.1004 FINANCE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
011.1004.400110 Property Taxes - Current Secured 4,329,523$ 4,466,933 4,512,796$ 4,603,052$ 90,256$
011.1004.400210 Property Taxes - Prior Years Secured (5,794) 13,772 (8,831) (9,008)$ (177)
011.1004.400211 Property Taxes - Prior Year Unsecured 4,349 987 2,128 2,171$ 43
011.1004.400310 Property Taxes - Real Transfer Tax 206,556 237,532 234,248 238,933$ 4,685
011.1004.400500 Property Taxes - Penalties 12,069 8,291 12,706 12,960$ 254
011.1004.400700 Property Taxes - Homeowners' Exemption 13,681 11,259 12,780 13,036$ 256
011.1004.400820 PSAF - Public Safety Augmentation Fund 1,842 1,989 1,289 1,315$ 26
011.1004.401000 Utility Users Tax 11,758,238 12,367,272 11,887,359 12,754,964 867,605
011.1004.401200 Sales and Use Tax 9,841,556 11,482,241 11,027,900 13,675,525 2,647,625
011.1004.401201 District Tax (T&U Tax - Measure V)- 3,247,193 4,692,100 4,240,707 (451,393)
011.1004.401250 Tax Abatement - Sales and Use Tax (283,809) (283,859) (330,393) (2,377,001) (2,046,608)
011.1004.401600 Administrative Fees - SB2557 (36,833) (38,689) (39,215) (39,999) (784)
011.1004.408400 Traffic Congestion Relief Program 338 - - -
011.1004.410100 Business Licenses 5,416,628 5,810,837 5,474,667 5,584,160 109,493
011.1004.410211 Fire Permit Fees - 450 - -
011.1004.410212 Alarm Permits 15,600 1,375 10,000 16,000 6,000
011.1004.410300 Franchises and Agreements 79,420 73,959 78,000 76,000 (2,000)
011.1004.430110 Investment Income 137,738 70,480 86,700 85,000 (1,700)
011.1004.442001 In-Lieu Taxes - State Motor Vehicle 11,335 11,864 10,973 11,000 27
011.1004.458000 General City Administrative Service Rev 3,665,551 3,738,862 3,813,444 3,267,513 (545,931)
011.1004.461100 Fines and Penalties 42,531 6,554 12,000 10,000 (2,000)
011.1004.466900 Miscellaneous Revenues 1,947,980 157,414 267,979 (267,979)
011.1004.630055 In-Lieu Taxes from Fund 055 4,582,784 4,781,720 5,093,787 5,430,392 336,605
011.1004.670010 Sale of Capital Asset 79 486,009 - -
011.1004.690100 Operating Transfer In for ERP - - 540,000 635,600 95,600
011.2004.440100 Grant Revenues - - - -
TOTAL REVENUES 41,741,362$ 46,654,445$ 47,392,417$ 48,232,320$ 839,903$
SALARIES:
011.1004.501010 Salaries - Regular 1,067,868$ 1,081,451 1,298,002$ 1,323,028$ 25,026$
011.1004.501012 Salaries - Premiums 180,313 91,585 76,048 74,253 (1,795)
011.1004.501020 Salaries - O.T.1,440 1,415 5,000 5,000 -
1,249,622 1,174,451 1,379,050 1,402,281 23,231
BENEFITS:
011.1004.502020 Retirement 333,906$ 345,776 445,511$ 540,167$ 94,656$
011.1004.502030 Insurance Premiums - Medical 164,528 166,449 219,385 202,837 (16,548)
011.1004.502060 FICA Taxes 17,872 16,737 19,996 73 (19,924)
011.1004.502070 Unemployment 10,768 2,250 - -
527,073 531,213 684,892 743,077 58,185
SUPPLIES/SERVICES:
011.1004.502090 Claims Expenditure - SIR Settlements 6,467$ 44,750 -$ -$
011.1004.503035 Insurance Premiums - Property/Crime 962,574 793,042 967,756 1,090,742 122,986
011.1004.520000 Supplies 47,269 37,461 54,200 54,200 -
011.1004.530015 Real Estate Taxes 5,620 5,862 6,000 6,000 -
011.1004.592010 Bank Service Fees 80,170 141,636 112,000 120,000 8,000
011.1004.594200 Professional Services - Administrative 5 - - - -
011.1004.595200 Professional Services - Technical 245,626 120,370 153,232 177,802 24,570
011.1004.596200 Professional Services - Other 55,698 60,117 41,400 41,400 -
011.1004.596500 Travel 6,273 - 9,300 9,300 -
25 of 167
CITY OF VERNON
Fund 011 Department 1004 - General Fund - Finance Department
Budget Detail
2022-2023
DEPARTMENT:
011.1004 FINANCE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
011.1004.596550 Membership Dues 2,238 1,557 2,511 2,511 -
011.1004.596600 Books & Publications 323 936 2,550 2,550 -
011.1004.596700 Employee Development & Training 2,887 300 6,000 6,000 -
011.1004.530034 Cash (Over)Short (8) 25 - - -
1,415,144 1,206,055 1,354,949 1,510,505 155,556
TOTAL EXPENDITURES 3,191,839$ 2,911,719$ 3,418,891$ 3,655,863$ 236,972$
26 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1004 - FINANCE
2022-2023
Account No. 503035 - Insurance Premiums - Property/Crime
Detailed FY2022 FY2023
Name Description Budget Budget
1 Aon Insurance Services Excess Liability 179,669$ 543,980$
2 Aon Insurance Services Public Official Errors & Omissions & Employment Practice Liability 222,953 -
3 Aon Insurance Services Excess Workers Compensation 187,283 187,600
4 Aon Insurance Services Employee Crime 4,748 3,824
5 Aon Insurance Services Commercial Property 66,397 84,530
6 Aon Insurance Services Residential Property 53,317 39,275
7 Aon Insurance Services Environmental Impairment Liability 35,570 38,415
8 Aon Insurance Services Cyber Liability 60,653 44,801
9 Aon Insurance Services Terrorism 39,544 40,064
10 Aon Insurance Services Contractor's Equipment 25,124 13,926
11 Aon Insurance Services Special Events - 1,827
12 Aon Insurance Services Brokerage Fee 92,500 92,500
967,756$ 1,090,742$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 US Postal Service Postage 45,000$ 45,000$
2 Staples and Other Office Supplies 6,000 6,000
3 Pospaper.com Cash register receipt paper 200 200
4 Staples Office Supplies 1,500 1,500
5 Proforma Express Graphics Business forms (envelopes, checks..etc..)1,500 1,500
54,200$ 54,200$
Account No. 530015 - Real Estate Taxes
Detailed FY2022 FY2023
Name Description Budget Budget
1 L.A. County Tax Collector Possessory Interest Tax (Austin Trucking Inc.)6,000$ 6,000$
6,000$ 6,000$
Account No. 592010 - Bank Service Fees
Detailed FY2022 FY2023
Name Description Budget Budget
1 East West Bank Bank Analysis 66,000$ 30,000$
2 OpenEdge Credit card processing fees.46,000 90,000
112,000$ 120,000$
27 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1004 - FINANCE
2022-2023
Account No. 595200 - Professional Services Technical
Detailed FY2022 FY2023
Name Description Budget Budget
1 CliftonLarsonAllen, LLP Audit of City's annual financial report 125,000 125,000
2 Munis Services UUT auditing services 8,750 15,000
3 Aon Risk Solutions Worker's compensation and general liability actuarial reports 6,000 6,000
4 Bank of New York Bond Trustee 2,482 2,482
5 CalPERS GASB 68 report and census data file (misc. and safety)6,000 6,000
6 Van Iwaarden GASB 75 - OPEB Actuarial reports 5,000
7 GovInvest Actuarial consulting, GASB 75 - OPEB Actuarial reports, and other technology
services
- 23,320
153,232$ 177,802$
Account No. 596200 - Professional Services - Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Munis Services Sales Taxes 7,500$ 7,500$
2 HDL Coren & Cone Property Taxes 7,000 7,000
3 HDL Coren & Cone Safety and Warehouse Parcel Tax Direct Assessment Fees 16,000 16,000
4 Caine & Weiner Company Collection Agency fees 2,000 2,000
5 County of Los Angeles LAFCO Charges 8,900 8,900
41,400$ 41,400$
Account No. 596500 - Travel
Detailed FY2022 FY2023
Type Description Budget Budget
1 Conferences/Continuing Education Seminar/Training Travel/Mileage 7,200$ 7,200$
2 Out-of-State travel Per diem, airfare, and lodging.2,100 2,100
9,300$ 9,300$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 GFOA Professional Membership Dues 600$ 600$
2 CSMFO Professional Membership Dues 600 600
3 American Payroll Association Professional Membership Dues 516 516
4 PARMA Public Agency Risk Management Association 150 150
5 League of California Cities Professional Membership Dues 75 75
6 Cal Municipal Treasurers Assoc.Professional Membership Dues 310 310
7 Two Purchasing Assistants CAPPO & CMRTA Dues 260 260
2,511$ 2,511$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 GFOA Accounting/Financial Statement Publications 500$ 500$
2 GASB Accounting/Financial Statement Publications 300 300
3 Various Providers Department reference materials 250 250
4 Accounting and Payroll Reporting guides and regulations 1,500 1,500
2,550$ 2,550$
Account No. 596700 - Employee Development & Training
Detailed FY2022 FY2023
Type Description Budget Budget
1 Various Providers Continuing Professional Education 2,000$ 2,000$
2 Risk Management Cert Continuing Professional Education 2,000 2,000
3 Various Providers Training material/courses estimated 2,000 2,000
6,000$ 6,000$
28 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1026 Human Resources
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 376,011$ 415,075$ 398,000$ 370,000$ (28,000)$
EXPENSES:
SALARIES 622,081$ 623,334$ 669,355$ 701,641$ 32,286$
BENEFITS 4,280,627 3,515,322 3,675,506 3,366,843 (308,663)
WORKERS COMP/LIABILITY 155,350 129,865 163,000 163,000 -
SUPPLIES/SERVICES 196,528 221,583 427,515 444,004 16,489
TOTAL EXPENSES 5,254,586$ 4,490,104$ 4,935,376$ 4,675,488$ (259,888)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budgeted Budgeted Budgeted Proposed (Decrease)
Administrative Intern (Temp)0.50 -$ -$ -$ 15,600$ 15,600$
Administrative Secretary 1.00 78,664 81,758 84,166 85,819 1,653
Director of Human Resources 1.00 214,976 223,596 235,105 239,710 4,605
Human Resources Analyst 1.00 107,369 111,615 114,918 118,646 3,728
Human Resources Analyst, Senior 1.00 147,005 152,839 157,379 160,496 3,117
Human Resources Assistant 1.00 52,228 57,038 61,687 69,370 7,683
Overtime 5,000 5,000 3,000 3,000 -
Payout (vacation and sick excess hours)15,200 13,800 13,100 9,000 (4,100)
DEPARTMENT TOTALS 5.50 620,442$ 645,646$ 669,355$ 701,641$ 32,286$
29 of 167
CITY OF VERNON
Fund 011 Department 1026 - General Fund - Human Resources Department
Budget Detail
2022-2023
DEPARTMENT:
011.1026 Human Resources
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES
011.1026.459030 Group Medical Revenue 376,011$ 385,075 398,000$ 370,000$ (28,000)$
011.1026.600910 Other Income - 30,000 - -
TOTAL REVENUES 376,011$ 415,075$ 398,000$ 370,000$ (28,000)$
EXPENSES:
SALARIES
011.1026.501010 Salaries - Regular 582,728$ 587,902 624,683$ 666,951$ 42,268$
011.1026.501012 Salaries - Premium 38,180 35,234 41,672 31,690 (9,982)
011.1026.501020 Salaries - O.T.1,174 199 3,000 3,000 -
622,081 623,334 669,355 701,641 32,286
BENEFITS
011.1026.502020 Retirement 178,326$ 192,827 226,513$ 282,503$ 55,990$
011.1026.502030 Insurance Premiums - Medical 72,432 76,172 75,799 67,973 (7,826)
011.1026.502031 Insurance Premiums - Retirees 1,323,114 1,302,618 1,360,488 1,464,500 104,012
011.1026.502060 FICA Taxes 8,788 8,992 9,706 10,174 468
011.1026.502070 Unemployment 5,098 3,014 3,000 3,000 -
011.1026.502096 Postemployment Benefit Contribution 2,692,868 1,931,700 2,000,000 1,538,693 (461,307)
4,280,627 3,515,322 3,675,506 3,366,843 (308,663)
WORKERS COMP LIABILITY
011.1026.500245 Self-Insured Assessment Fees State of CA 45,700$ 35,726 40,000$ 40,000$ -$
011.1026.502080 Claims Expenditures - Worker's Comp 108,198 94,595 120,000 120,000 -
011.1026.502095 Medical Expenditures - Workers Comp 1,451 (455) 3,000 3,000 -
155,350 129,865 163,000 163,000 -
SUPPLIES/SERVICES
011.1026.520000 Supplies 35,902$ 2,604 15,000$ 15,000$ -$
011.1026.550000 Advertisement/Promotion 4,827 5,091 10,000 10,000 -
011.1026.594200 Professional Services - Administration 72,699 111,222 154,645 157,104 2,459
011.1026.596200 Professional Services - Other 42,557 60,666 80,820 81,250 430
011.1026.596500 Travel 2,203 - 4,800 5,800 1,000
011.1026.596600 Books and Publications 100 790 1,700 1,700 -
011.1026.596700 Citywide Training/Employee Development 6,210 2,199 50,600 67,800 17,200
011.1026.596800 Tuition/Education Reimbursement Program 6,015 12,478 40,000 30,000 (10,000)
011.1026.596900 Employee Recognition Program (2,173) 19,716 42,450 42,850 400
011.1026.596905 Recruitments 1,811 1,022 5,500 5,500 -
011.1026.597000 Pre-Employment Physicals and Exams 26,377 5,795 22,000 27,000 5,000
196,528 221,583 427,515 444,004 16,489
TOTAL EXPENSES 5,254,586$ 4,490,104$ 4,935,376$ 4,675,488$ (259,888)$
30 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1026 - HUMAN RESOURCES
2022-2023
Account No. 500245 - Assessment Fees
Detailed FY2022 FY2023
Name Description Budget Budget
1 Department of Industrial Relations Statutory assessment fees for self-insured employers.40,000$ 40,000$
40,000$ 40,000$
Account No. 502080- Workers Comp - Claims Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 Worker's Compensation Self-
Insured Plan
Claims costs for non-safety employees.120,000$ 120,000$
120,000$ 120,000$
Account No. 502095 - Medical Expenditure - Workers Comp
Detailed FY2022 FY2023
Name Description Budget Budget
1 First Aid Incidents Treat and release incidents for all employees.3,000$ 3,000$
3,000$ 3,000$
Account No. 502030 - Group Insurance Premiums
Detailed FY2022 FY2023
Name Description Budget Budget
1 Blue Shield/Met Life/MES Vision Medical/Dental/Vision Premiums 75,691$ 67,868$
2 Mutual Omaha Life Basic Life Insurance 108 105
75,799$ 67,973$
31 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1026 - HUMAN RESOURCES
2022-2023
Account No. 502031 - Retiree/Cobra Group Insurance Premiums
Detailed FY2022 FY2023
Name Description Budget Budget
1 Blue Shield/Anthem/MetLife Medical/Dental Premiums for Retirees 1,295,988$ 1,400,000$
2 Blue Shield/MetLife/MES Vision Medical/Dental/Vision Premiums for COBRA Members 55,000 55,000
3 Malkenhorst Reimbursement for Excess Medical Expenses 9,500 9,500
1,360,488$ 1,464,500$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Per Procurement
Requirement
Annual Chamber of Commerce Posters, Forms, General Office
Supplies, Sympathy cards, and Mailing.
15,000$ 15,000$
15,000$ 15,000$
ACCOUNT NO. 550000 - Advertisement / Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Per Procurement
Requirement
Various Recruitment Ads 10,000$ 10,000$
10,000$ 10,000$
Account No. 594200 - Professional Services - Administration
Detailed FY2022 FY2023
Name Description Budget Budget
1 Athens Administrators Worker's Compensation Third Party Claims 75,645$ 78,104$
2 IGOE Administrative Services FSA and DCA Administration 1,500 1,500
3 Illiant Insurance Services, Inc.Health Benefits Brokarage and Consulting Services 74,000 74,000
4 Navex Global, Inc.Third Party Whistleblower & Fraud Prevention Services 3,500 3,500
154,645$ 157,104$
32 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1026 - HUMAN RESOURCES
2022-2023
Account No. 596200 - Professional Services - Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 US Drug Test Centers Random Drug Testing Program and Policy 2,700$ 2,700$
2 Liebert Cassidy Labor Relations Consortium 3,720 3,950
3 WRIB Applicant Testing Materials 2,600 2,800
4 Shaw HR Consulting Interactive Process Coordination & Facilitation, Essential
Functions Position Analysis
20,000 20,000
5 CPS Testing Services Exam Rental & Proctoring Services 50,000 50,000
6 DF Design Graphic Design Services 1,800 1,800
80,820$ 81,250$
Account No. 596500 - Travel
Detailed FY2022 FY2023
Name Description Budget Budget
1 CALPELRA Conference Monterey, CA (November, 2022) 3,500$ 3,500$
2 LCW Conference City (Feb. 2023)1,000 1,000
3 PARMA City (Feb. 2023)1,000 1,000
4 Travel for Local Conferences and Trainings 300 300
4,800$ 5,800$
Account No. 596600 - Books and Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 Professional Memberships Memberships - SCPMA HR $50 ea., or $25 ea., if members of
IPMA-HR, So Ca Labor Relations Council $150/agency,
CALPELRA $370 ea., IPMA-HR $397 for 1-3 Staff members,
PARMA $150
1,700 1,700
1,700$ 1,700$
33 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1026 - HUMAN RESOURCES
2022-2023
Account No. 596700 - Employee Development & Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Professional Organizations Employee Training and Development, HR Staff Trainings
(SCPMA-HR), So. CA Labor Relations Council, IPMA - HR,
CALPELRA, PARMA, LCW Conference and League of California
Cities Conference and HR Training Videos and Manuals
35,000$ 35,000$
2 Coastal Dupont Safety Training Videos 2,600 2,800
3 Project # 169001 Wellness Program/Promotions 13,000 30,000
50,600$ 67,800$
Account No. 596800 - Tuition/Education Reimbursement Program
Detailed FY2022 FY2023
Name Description Budget Budget
1 Employee Reimbursements
Pursuant to MOU's
Tuition/Education Reimbursement Program 40,000$ 30,000$
40,000$ 30,000$
Account No. 596900 - Employee Recognition Program
Detailed FY2022 FY2023
Name Description Budget Budget
1 Miscellaneous Purchases Including
Annual Recognition Awards
Employee Recognition Program & Holiday Event 32,000$ 32,000$
2 2021 Employee Appreciation
Luncheon
4,500 4,500
3 2021 Kickoff Day 1,500 1,500
4 2021 Halloween Event 3,350 3,350
5 2022 Opening Day Event 1,100 1,500
42,450$ 42,850$
34 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1026 - HUMAN RESOURCES
2022-2023
Account No. 596905 - Recruitments
Detailed FY2022 FY2023
Name Description Budget Budget
1 Recruitments Recruitment expenses and related supplies 5,500$ 5,500$
5,500$ 5,500$
Account No. 597000 - Pre-Employment Physicals and Exams
Detailed FY2022 FY2023
Name Description Budget Budget
1 Concentra Occupational Health Pre-Employment Physicals and Exams, DOTs 10,000$ 15,000$
2 DOT Drug & Alcohol Compliance
Random Testing - Third Party
Administrator
DOT Random Drug & Alcohol Testing 12,000 12,000
22,000$ 27,000$
35 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1021 COMMUNITY PROMOTION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SUPPLIES/SERVICES 473,680$ 506,075$ 500,000$ 500,000$ -$
TOTAL EXPENSES 473,680$ 506,075$ 500,000$ 500,000$ -$
36 of 167
DEPARTMENT:
011.1021 COMMUNITY PROMOTION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
011.1021.550000 Advertisement/Promotion 7,880$ - -$ -$ -$
011.1021.520000 Supplies - - - 400$ 400
011.1021.596200 Professional Services Other 800 400 106,675 111,800 5,125
011.1021.797000 Good Neighbor Program 465,000 505,675 393,325 387,800 (5,525)
473,680 506,075 500,000 500,000 -
TOTAL EXPENSES 473,680$ 506,075$ 500,000$ 500,000$ -$
CITY OF VERNON
Fund 011 Department 1021 - General Fund - Community Promotion Department
Budget Detail
2022-2023
37 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1021 - COMMUNITY PROMOTION
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Vendors Certificate Frames/Holders 400$
400$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Vendor TBD Contract Services for administration of Good Neighbor
Program/Vernon CommUNITY Fund Grant Committee
106,675$ 110,000$
2 Various Committee Members Participant Stipends 1,800$
106,675$ 111,800$
Account No. 797000 - Good Neighbor Program
Detailed FY2022 FY2023
Name Description Budget Budget
1 Vernon Community Fund VCF Grant Awards 393,325$ 387,800$
393,325$ 387,800$
38 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1070 COMMUNITY DEVELOPMENT
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SUPPLIES/SERVICES 376,860$ 124,516$ 461,419$ 447,900$ (13,519)$
TOTAL EXPENSES 376,860$ 124,516$ 461,419$ 447,900$ (13,519)$
39 of 167
DEPARTMENT:
011.1070 COMMUNITY DEVELOPMENT
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SUPPLIES/SERVICES
011.1070.550000 Advertisement/Promotion 20,436$ 34,810 208,900$ 213,900$ 5,000$
011.1070.596200 Professional Services Other 7,194 - 189,519 171,000 (18,519)$
011.1070.797000 Community Development 349,230 89,706 63,000 63,000 -$
376,860 124,516 461,419 447,900 (13,519)
TOTAL EXPENSES 376,860$ 124,516$ 461,419$ 447,900$ (13,519)$
Fund 011 Department 1070 - General Fund - Community Development Department
Budget Detail
2022-2023
40 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1070 - COMMUNITY DEVELOPMENT
2022-2023
Account No. 550000 - Advertisement/Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 Vernon Community Outreach City hosted events for the community (e.g. seasonal outreach, town
hall meetings, business community engagement)
40,000$ 40,000$
2 Various Vendors Food and beverage purchases for community outreach events
including National Night Out, Coffee with a Cop, and DARE. Activities
and products related to community outreach events and recognition
awards
8,000 8,000
3 Professional Printing/Marketing Materials Promotional Materials/Collateral 5,000 5,000
4 TBD Miscellaneous Sponsorship/ Event Attendance 15,000 15,000
5 Community Partner Sponsorships Miscellaneous sponsorships/support for organizations in Southeast
region
25,000 50,000
6 Rio Hondo Rotary Partnership Holiday Fundraiser 500 500
7 Pink Patch Project PD promotion/outreach for Breast Cancer Awareness 5,400 5,400
8 Various Vendors Holiday Light Show Display Equipment 5,000
9 Large Scale Citywide Event(s)Open Streets/5k Run/Scavenger Hunt 100,000 75,000
10 Community Activities Citywide Cleanup 10,000 10,000
208,900$ 213,900$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 YMCA Contracted Services for the provision of social/educational programs
in Vernon and YMCA memberships for Vernon residents
153,519$ 120,000$
2 TBD Consultant for Public Art Program 15,000$
3 ALL CITY MANAGEMENT Crossing Guard Services 36,000 36,000
189,519$ 171,000$
Account No. 797000 - Community Development
Detailed FY2022 FY2023
Name Description Budget Budget
1 Lease/Rent for Community Space(s)For hosting programs in City 6,000 6,000
2 Vernon Elementary School Partnership Periodic donations 2,000 2,000
3 Resident Programs Periodic donations/programs to promote wellness (e.g. home water
filters, energy saving light bulbs, air purifiers)
5,000 5,000
4 Promotional Opportunities Investments for beautification, promotion, branding 50,000 50,000
63,000$ 63,000$
41 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1023 INDUSTRIAL DEVELOPMENT
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SUPPLIES/SERVICES 43,889$ 20,898$ 138,300$ 158,300$ 20,000$
CAPITAL:
EXPENDITURES -$ -$ -$ -$ -$
TOTAL EXPENDITURES 43,889$ 20,898$ 138,300$ 158,300$ 20,000$
42 of 167
CITY OF VERNON
Fund 011 Department 1023 - General Fund - Industrial Development Department
Budget Detail
2022-2023
DEPARTMENT:
011.1023 INDUSTRIAL DEVELOPMENT
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SUPPLIES/SERVICES
011.1023.520000 Supplies -$ - 1,000$ 1,000$ -$
011.1023.550000 Advertisement/Promotion 34,547 19,480 81,500 101,500 20,000
011.1023.560000 Utilities - - - - -
011.1023.593200 Professional Services - Legal - - - - -
011.1023.596200 Professional Services - Other 2,747 400 44,800 44,800 -
011.1023.596500 Travel - - 5,000 5,000 -
011.1023.596550 Membership Dues 5,780 - 5,000 5,000 -
011.1023.596600 Books & Publications 815 1,017 1,000 1,000 -
43,889 20,898 138,300 158,300 20,000
CAPITAL
011.1023.900000 Capital Outlays -$ - -$ -$ -$
TOTAL CAPITAL -$ -$ -$ -$ -$
43 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1023 - INDUSTRIAL DEVELOPMENT
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Warehouse Copy Paper 400$ 400$
2 Staples General Office Supplies 300 300
3 Huntington Park Rubber Stamp Name Plates 100 100
4 Fed Ex Mail 200 200
1,000$ 1,000$
Account No. 550000 - Advertisement/Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 Vernon Chamber Installation Luncheon/Economic Forecast/Golf
Tourney
25,000$ 30,000$
2 LAEDC Eddy Awards 4,000 4,000
3 TBD Miscellaneous Sponsorship/Event Attendance 5,000 5,000
4 TBD Misc Trade Events 2,500 2,500
5 TBD West Side Project Promotion (Trade Shows,
Events, etc.)
10,000 10,000
6 LA Business Journal Business Appreciation/Recognition (publications,
etc.)
10,000 20,000
7 TBD Business Appreciation/Recognition (events,
advertisement, etc.)
5,000
8 TBD Industrial Fair 5,000
9 TBD Economic Development Strategic Marketing &
Communications
10,000 10,000
10 TBD Banners/ Brochures/Promotional Materials/Events 15,000 10,000
81,500$ 101,500$
Account No. 596200 - Professional Services - Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Vernon Business & Industry Commission Meeting Stipends 4,800$ 4,800$
2 Professional Services Various Firms 40,000$ 40,000
44,800$ 44,800$
44 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1023 - INDUSTRIAL DEVELOPMENT
2022-2023
Account No. 596500 - Travel
Detailed FY2022 FY2023
Name Description Budget Budget
1 Air, Hotel, Etc.Various Seminars/Meetings 5,000$ 5,000$
5,000$ 5,000$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 LAEDC Membership Dues 5,000 5,000
5,000$ 5,000$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 Los Angeles Business Journal Annual Subscription 180$ 180$
2 Los Angeles Times Annual Subscription 820 820
1,000$ 1,000$
45 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.9019 INFORMATION TECHNOLOGY
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENDITURES:
SALARIES 584,088$ 654,657$ 727,344$ 726,222$ (1,122)$
BENEFITS 226,874 268,359 317,229 355,496 38,267
SUPPLIES/SERVICES 1,211,431 1,697,859 2,053,703 1,937,103 (116,600)
CAPITAL 32,988 604,967 1,040,000 1,040,000 -
TOTAL EXPENDITURES 2,055,382$ 3,225,842$ 4,138,276$ 4,058,821$ (79,455)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budgeted Budgeted Budgeted Proposed (Decrease)
Administrative Assistant, Senior - 27,420$ 29,945$ 32,385$ -$ (32,385)$
Information Technology Analyst 1.00 89,327 92,909 100,481 107,615 7,134
Information Technology Analyst, Senior 2.00 234,270 249,310 262,897 274,694 11,797
Information Technology Manager 1.00 176,862 183,954 189,472 193,261 3,789
Information Technology Technician 1.00 - 69,330 68,009 73,552 5,543
Programmer/Analyst - - - - - -
Overtime 30,000 30,000 20,000 23,000 3,000
Payout (vacation and sick excess hours)10,000 6,400 14,100 14,100 -
Stand-by 40,000 40,000 40,000 40,000 -
DEPARTMENT TOTALS 5.00 607,879$ 701,848$ 727,344$ 726,222$ (1,122)$
46 of 167
CITY OF VERNON
Fund 011 Department 9019 - General Fund - Information Technology Department
Budget Detail
2022-2023
DEPARTMENT:
011.9019 INFORMATION TECHNOLOGY
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
SALARIES
011.9019.501010 Salaries - Regular 505,245$ 559,864 631,703$ 626,838$ (4,865)$
011.9019.501012 Salaries - Premium 63,271 74,544 75,641 76,384 743
011.9019.501020 Salaries - O.T.15,572 20,249 20,000 23,000 3,000
584,088 654,657 727,344 726,222 (1,122)
BENEFITS
011.9019.502020 Retirement 138,113$ 168,637 214,215$ 256,516$ 42,301$
011.9019.502030 Insurance Premiums - Medical 80,402 90,381 92,468 88,450 (4,018)
011.9019.502060 FICA Taxes 8,359 9,341 10,546 10,530 (16)
226,874 268,359 317,229 355,496 38,267
SUPPLIES/SERVICES:
011.9019.520000 Supplies 73$ 411 3,000$ 3,000$ -$
011.9019.520010 Supplies - IT 245,306 327,183 179,000 179,000 -
011.9019.560010 Utilities - IT 197,353 148,513 169,300 169,300 -
011.9019.570000 Vehicle Expense 2,208 1,368 3,500 3,500 -
011.9019.590110 Repair & Maintenance - IT 704,037 1,095,777 1,214,903 1,147,303 (67,600)
011.9019.595200 Professional Services - Technical - - - - -
011.9019.595210 Professional Services - IT 58,529 109,550 453,000 403,000 (50,000)
011.9019.596500 Travel 894 4 7,500 7,500 -
011.9019.596600 Books & Publications 939 - 2,000 2,000 -
011.9019.596700 Training 2,092 15,053 21,500 22,500 1,000
1,211,431 1,697,859 2,053,703 1,937,103 (116,600)
CAPITAL
011.9019.860000 IT Equipment & Software 32,988$ 604,967 1,040,000$ 1,295,450$ 255,450$
32,988 604,967 1,040,000 1,295,450 255,450
TOTAL EXPENDITURES 2,055,382$ 3,225,842$ 4,138,276$ 4,314,271$ 175,995$
47 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 9019 - INFORMATION TECHNOLOGY
2022-2023
Account No. 520000 - Supplies
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)Staples Office Supplies 3,000$ 3,000$
3,000$ 3,000$
Account No. 520010 - Supplies IT
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)Insight Miscellaneous software (Adobe, Visio,
FileMaker Pro)
40,000$ 40,000$
2 IT(9019)Dell Monitors 10,000 10,000
3 IT(9019)Canon Scanners 15,000 15,000
4 IT(9019)VMWare VMWare Licenses 15,000 15,000
5 IT(9019)Dell Computer Replacements 15,000 15,000
6 IT(9019)CDW Backup tapes (100x40)10,000 10,000
7 IT(9019)HP Printers replacement 10,000 10,000
8 IT(9019)CDW Networking equipment (routers,
switches, cables, connectors, etc.)
20,000 20,000
9 IT(9019)CDW UPS replacements 2,500 2,500
10 IT(9019)Mitel Mitel - Business phones accessories &
replacement parts
5,000 5,000
11 IT(9019)CDW Cell phones accessories (chargers, cases,
adapters, phone parts replacements)
4,000 4,000
12 Police(1031)CDW Hard Drives Replacements 2,500 2,500
13 IT(9019)CDW Hard Drives Replacements 10,000 10,000
14 IT(9019)Crosspoint Mitel IP Phone Licenses 10,000 10,000
15 IT(9019)TBD Mitel IP Phones 10,000 10,000
179,000$ 179,000$
Account No. 560010 - Utilities IT
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 Finance(1004)Verizon Wireless Telecommunication Charges 2,200$ 2,200$
2 IT(9019)Verizon Wireless Telecommunication Line Additions 16,000 16,000
3 HR(1026)Verizon Wireless Telecommunication Charges 2,100 2,100
4 City Attorney(1005)Verizon Wireless Telecommunication Charges 1,000 1,000
5 CS(1040)Verizon Wireless Telecommunication Charges 29,000 29,000
6 Health(1060)Verizon Wireless Telecommunication Charges 8,000 8,000
7 City Admin(1002)Verizon Wireless Telecommunication Charges 8,000 8,000
8 Police(1031)Verizon Wireless Telecommunication Charges 12,000 12,000
9 Police(1031)Verizon Wireless Police Patrol Car Modems 13,000 13,000
10 IT(9019)Iron Mountain Iron Mountain (backup tapes remote
storage services)
9,000 9,000
11 Finance(1004)AT&T CalNet3 Telecommunication Charges 500 500
12 IT(9019)AT&T CalNet3 Telecommunication Charges 16,000 16,000
13 CS(1040)AT&T CalNet3 Telecommunication Charges 500 500
14 Health(1060)AT&T CalNet3 Telecommunication Charges 500 500
15 Police(1031)AT&T CalNet3 Telecommunication Charges 14,000 14,000
16 Police(1031)AT&T Telecommunication Charges 3,400 3,400
17 Police(1031)Sprint Telecommunication Charges 600 600
18 IT(9019)GoDaddy.com Web hosting; security certificates for City
web sites & SSL vpn appliance
1,000 1,000
19 City Clerk(1003)Verizon Wireless Telecommunication Charges 500 500
20 IT(9019)AT Conference Phone Conferencing Service 4,000 4,000
21 IT(9019)AT&T CalNet3 Backup Internet Line 28,000 28,000
169,300$ 169,300$
48 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 9019 - INFORMATION TECHNOLOGY
2022-2023
Account No. 570000 - Vehicle Expense
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)Vehicle Repair Repairs 2,500$ 2,500$
2 IT(9019)Fuel + Community Services IT Vehicle Expenses 1,000 1,000
3,500$ 3,500$
Account No. 590110 - Repairs & Maintenance IT
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)Tyler Technologies Munis/Energov/DHD System support 373,203$ 373,203$
2 IT(9019)Microsoft Enterprise Agreement Microsoft Licenses 90,000 60,000
3 Police(1031)TriTech (formerly VisionAIR)Public Safety Suite (CAD, RMS, FBR)72,000 76,000
4 IT(9019)ECS Imaging Laserfiche system support 52,000 52,000
5 IT(9019)Crosspoint Mitel - business phone system support
by Crosspoint
25,000 25,000
6 IT(9019)GIS System Support Nobel Systems 22,000 22,000
7 IT(9019)Everbridge Notifications Notifications Services 20,000 20,000
8 Health(1060)Accela Software EnvisionConnect (annual contract, fiscal
year)
23,000 23,000
9 IT(9019)Xerox Financial Services, LLC Managed Print Services 125,000 125,000
10 IT(9019)HP + Dell Hardware support for all City servers 15,000 15,000
11 Police(1031)GeoSpatial Technologies, Inc.GST CrimeMap 7,000 7,000
12 IT(9019)Zscaler Web Security 20,000
13 Police(1031)Thomson Reuters CLEAR Website Access for Detectives 10,000 20,000
14 IT(9019)Lucity Lucity Work Orders System Support 17,000
15 Police(1031)Stancil Corporation Digital Recorders and Reproducers 3,000 3,000
16 IT(9019)HP VMWare Support for 2 servers 12,000
17 Police(1031)Advanced Electronics Card/Door Access and Closed Circuit TV
(Civil Defense)
15,000 15,000
18 CS(1040)AutoCAD AutoCAD Annual Support 6,000 6,000
19 IT(9019)Sonicwall SonicWall firewalls (Pro + TZ190 for
SCADA), content filtering, SSL VPN
support
4,000 4,000
20 IT(9019)Veritas Veritas Enterprise Vault support (City's
email archiving system)
10,000 10,000
21 IT(9019)Vmware Carbon Black Vmware Carbon Black Anti-Virus 5,000 10,000
22 Police(1031)Webiplex Electronic Subpoena Management
Software*
5,000 6,000
23 Police(1031)Insight Public Sector Vmware Carbon Black Anti-Virus 4,000 4,000
24 Police(1031)Insight Public Sector Veritas Backupp Exec 6,000 7,000
25 Police(1031)NetMotion Wireless Mobility XE Server and 29 Device
Licenses
2,500 3,500
26 IT(9019)Cybernetics SAN/Virtual Tapes Devices 15,000 15,000
27 Police(1031)Power Design UPS and Ferrups/Radio Towers (> Civil
Defense)
2,500 3,000
28 IT(9019)Quantum Backup tape library support 2,000 2,000
29 IT(9019)Vmware Vmware View Support 3,000 3,000
30 IT(9019)Onepoint Human Factor Time Management System Support 3,000 3,000
31 Police(1031)Kronos Work Telestaff 10,000 12,000
32 IT(9019)Zoho Corp Asset Manager Software Support 1,500 1,500
33 Police(1031)MDE, Inc.ADORE Training Software
Maintenance/Upgrades
2,600 2,600
34 IT(9019)ScriptLogic Privileged Authority Support 1,000 1,000
49 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 9019 - INFORMATION TECHNOLOGY
2022-2023
Account No. 590110 - Repairs & Maintenance IT Continued from previous page
35 Police(1031)Managed Video Support Panasonic Arbitrators (Motorcycle Video
cameras)
1,000 -
36 Police(1031)Training Innovations, Inc.TMS (Training) Software Support 1,000 1,500
37 IT(9019)CDW Cable Management for Server Room 1,000 1,000
38 Police(1031)Versatile Information Prod, Inc Puma Software Maintenance 4,000 4,500
39 IT(9019)Canon Ecopy Software Maintenance 4,000 -
40 IT(9019)TBA Cyber Security Audit 20,000 20,000
41 Police(1031)2fa Dual Authentication Security 1,000 1,000
42 Police(1031)Plotter Vendor Plotter Repair 5,000 5,000
43 HR(1026)NeoGOV GovJob.com/App
Tracking/Onboarding/Emp Eval
Module/Biddle
30,000 35,000
44 IT(9019)TrendMicro Appliance Security Appliance 18,000 -
45 IT(9019)Kronos Work Force Ready 18,000 18,000
46 IT(9019)Knowbe4 Cyber Security Awareness Training 7,000 7,000
47 IT(9019)Disaster Rev Services Disaster Recovery Services 6,000 6,000
48 Police(1031)TriTech (formerly VisionAIR)IQ Analytics 6,000 6,000
49 CS(1040)PlanetBids Bidding Software 8,000 8,500
50 Police(1031)BearCom Door System 15,000 15,000
51 Health(1060)Snappi Health Mobile App 6,000 6,500
52 City Clerk(1003)GovQA PRA Application 7,000 7,500
53 CS(1040)Parcel Data Parcel Data File 2,000 2,000
54 Police(1031)CrimeMap(Motorola)CrimeMap(Motorola)1,000 1,000
55 City Clerk(1003)Granicus Agenda Management 25,000 26,000
56 HR(1026)Neogov Text Feature 1,000 1,000
57 Police(1031)TBD Computer Upgrade for Police Units 20,000 20,000
58 HR(1026)New Benefits Software 16,000 16,000
59 City Clerk(1003)Granicus Disclosure Docs Online form 700 filing software 3,600 4,000
60 City Clerk(1003)Granicus Website Maintenance Website Management 4,000 5,000
61 Police(1031)Motorola Radio Contract Motorola - 18,000
62 Police(1031)New Central Square Modules(Crime View Analysis Property and Evidence New Modules - 37,000
63 Police(1031)Veritone Contact Veritone - 4,500
64 Police(1031)Veritone Redact Veritone - 2,500
65 Police(1031)IA Pro IA Pro - 16,000
66 Police(1031)LensLock Body Camera Body Camera System - 60,000
67 Police(1031)Motorola Radio Contract Server Upgrade Agreement - 8,000
68 Police(1031)Zscaler for PD PD Zscaler - 10,000
1,214,903$ 1,147,303$
Account No. 565210 - Professional Services IT
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)Eden / Laserfiche / Utility Billing/Vmware/Microsoft Report Services System Customizations 80,000$ 50,000$
2 IT(9019)SecureWorks Managed Security Services 25,000 55,000
3 City Clerk(1003)Granicus Website Redesign 50,000 -
4 Finance(1004)SDI Presence LLC Project Management for Munis
Implementation
273,000 273,000
5 IT(9019)GIS Integration with City Hall Systems(Lucity,
Etap, Milsoft)
25,000 25,000
453,000$ 403,000$
Account No. 596500 - Travel
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)EDEN User Conference Travel Expenses -$ 1,500$
2 IT(9019)Central Square Conference Travel Expenses 1,500 1,500
3 IT(9019)Advanced Utility/Vmware Conference Travel Expenses 1,500 -
4 IT(9019)MISAC Annual Travel Expenses 3,000 3,000
5 IT(9019)VMWare Annual Conference Travel Expenses 1,500 1,500
7,500$ 7,500$
50 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 9019 - INFORMATION TECHNOLOGY
2022-2023
Account No. 596600 - Books & Publications
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)TBD IT related books and training materials 2,000$ 2,000$
2,000$ 2,000$
Account No. 596700 - Training
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)TBD Technical Training 19,000$ 19,000$
2 IT(9019)PluralSight Technical Training 2,500 3,500
21,500$ 22,500$
Account No. 860000 - IT Equipment & Software
FY2022 FY2023
Sponsoring Department Name Description Budget Budget
1 IT(9019)Informs NIBRS Software for Compliance, Munis & Scantron Capital Outlays 1,040,000$ 1,295,450$
51 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1060 HEALTH
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 2,321,045$ 3,055,968$ 2,312,700$ 2,628,500$ 315,800$
SALARIES 506,182$ 740,272$ 826,235$ 891,398$ 65,163$
BENEFITS 216,648 410,063 416,737 446,958 30,221
SUPPLIES/SERVICES 367,630 206,864 582,200 832,000 249,800
CAPITAL - - 200,000 200,000 -
TOTAL EXPENDITURES 1,090,460$ 1,357,199$ 2,025,172$ 2,370,356$ 345,184$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Administrative Assistant 1.0 -$ -$ -$ 49,300$ 49,300$
Deputy Director of Health and Environmental Control 1.0 - - 165,355 171,746 6,391
Director of Health and Environmental Control 1.0 219,776 239,576 246,620 251,456 4,836
Environmental Health Intern (2)0.2 9,000 9,000 9,489 6,120 (3,369)
Environmental Health Specialist 3.0 110,235 245,781 269,295 263,848 (5,447)
Environmental Health Technician 2.0 54,839 115,712 129,576 134,428 4,852
Payout (vacation and sick excess hours)2,000.00 2,000 4,900 4,500 (400.00)
Overtime 1,000.00 1,000 1,000 10,000 9,000.00
DEPARTMENT TOTALS 8.2 396,850$ 613,069$ 826,235$ 891,398$ 65,163$
52 of 167
CITY OF VERNON
Fund 011 Department 1060 - General Fund - Health Department
Budget Detail
2022-2023
DEPARTMENT:
011.1060 HEALTH
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
011.1060.401205 Stormwater- Measure W-SCWP -$ 200,000 237,000$ 200,000$ (37,000)$
011.1060.410100 Business License Fees 499,713 - - - -
011.1060.410240 Public Health Permit Fees 332,466 624,932 350,000 580,000 230,000
011.1060.410250 Public Health Permit Late Fees 1,495 1,004 3,000 - (3,000)
011.1060.410260 CUPA Permit Fees - 648,202 450,000 620,000 170,000
011.1060.410265 CUPA Permit Late Fees - - 4,500 - (4,500)
011.1060.410310 Solid Waste Franchise Fees 1,432,823 1,524,362 1,200,000 1,200,000 -
011.1060.410320 Solid Waste Franchise Late Fees - - 1,200 3,000 1,800
011.1060.410400 CUPA Closure Review Fees 2,508 4,393 4,500 - (4,500)
011.1060.410410 Health Plan Check Review Fees 23,438 17,207 10,000 7,000 (3,000)
011.1060.410416 CUPA Plan Check Review Fees - 4,195 5,000 1,500 (3,500)
011.1060.410420 CalARP Review Fees - 627 2,500 - (2,500)
011.3060.440100 Grant Revenues 16,137 20,469 25,000 5,000 (20,000)
011.1060.461100 Fines and Penalties 11,579 - - - -
011.1060.461300 Free Sales Certificate Fees - 10,475 20,000 12,000 (8,000)
011.1060.466900 Miscellaneous Revenues 887 102 - - -
TOTAL REVENUES 2,321,045$ 3,055,968$ 2,312,700$ 2,628,500$ 315,800$
SALARIES:
011.1060.501010 Salaries - Regular 494,154$ 695,945 807,616$ 862,164$ 54,548$
011.1060.501012 Salaries - Premiums 12,028 22,582 17,619 19,234 1,615
011.1060.501020 Salaries - O.T.- 21,745 1,000 10,000 9,000
506,182 740,272 826,235 891,398 65,163
BENEFITS:
011.1060.502020 Retirement 136,578$ 202,290 264,453$ 327,655$ 63,202$
011.1060.502030 Insurance Premiums - Medical 72,303 87,796 137,304 103,378 (33,926)
011.1060.502060 FICA Taxes 7,767 14,401 11,980 12,925 945
011.1060.502070 Unemployment - 5,577 3,000 3,000 -
011.1060.502090 Claims Expenditure - SIR Settlements - 100,000 - - -
216,648 410,063 416,737 446,958 30,221
SUPPLIES/SERVICES:
011.1060.520000 Supplies 6,897$ 40,460 25,000$ 25,000$ -$
011.1060.560000 Utilities 7,679 9,760 10,000 10,000 -
011.1060.570000 Vehicle Expense 4,822 9,462 5,000 5,000 -
011.1060.590000 Repairs & Maintenance - - - 5,000 5,000
011.1060.595200 Professional Services -Technical 327,812 141,023 516,200 735,000 218,800
011.1060.596200 Professional Services -Other 11,725 - - - -
011.1060.596500 Travel 1,400 - 10,000 30,000 20,000
011.1060.596550 Membership Dues 2,380 1,991 5,000 5,000 -
011.1060.596600 Books & Publications 802 279 1,000 2,000 1,000
011.1060.596700 Employee Development & Training 4,113 3,888 10,000 15,000 5,000
367,630 206,864 582,200 832,000 249,800
CAPITAL
011.1060.900000 Capital Outlay -$ - 200,000$ 200,000$ -$
- - 200,000 200,000 -
TOTAL EXPENDITURES 1,090,460$ 1,357,199$ 2,025,172$ 2,370,356$ 345,184$
53 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1060 - HEALTH
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
Various Suppliers Per Procurement
Requirement
Department Supplies, Water Analysis, Printing,
Business Cards, Health Permit Forms, Stationery,
Office Supplies, Mailing Services and Reproduction
Services. Laboratory Fees, Office Supplies, Laboratory
Supplies, Field Supplies, Hazardous Waste Fees.
25,000$ 25,000$
-
25,000$ 25,000$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 City of Vernon Interdepartmental Utilities 10,000$ 10,000$
10,000$ 10,000$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Fuel Pump and Repairs Vehicle Expenses, Vehicle Fuel, Maintenance and Car
Wash
5,000$ 5,000$
-
5,000$ 5,000$
54 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1060 - HEALTH
2022-2023
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Service Providers Per Procurement
Requirement
Computer Equipment Repair, Office Maintenance,
Servicing of Laboratory Equipment, Battery
Replacement
-$ 5,000$
-$ 5,000$
Account No. 595200 - Professional Services - Technical
Detailed FY2022 FY2023
Name Description Budget Budget
1 AristaTek Inc Software for HAZMAT and CBRNE Professionals -$
2 Dr. Mascola Health Officer Services 85,000 60,000
3 DTSC Voluntary Clean Up Agreement 100,000 100,000
4 Daily Journal Corporation RMP Publication Services 1,200 5,000
5 GLACVCD Vector Control Services 20,000 20,000
6 IEA Environmental Outreach and Education Services 50,000 50,000
7 PIC Voluntary Clean Up Agreement Sub Contract 100,000 100,000
8 SEAACA Animal Control Services 24,000 24,000
9 Tetra Tech Voluntary Clean Up Agreement Sub Contract 20,000 20,000
10 Syncta Backflow Device Testing Data Management 6,000 6,000
11 Company Not Yet Selected Environmental Clean Up Services 50,000 250,000
12 Green Vernon Commission Commission Expenses - Stipends 5,000 10,000
13 Sespe Environmental Remediation Consulting Services 5,000 40,000
14 Misc Incidental Department Needs 50,000 50,000
516,200$ 735,000$
Account No. 596500 - Travel
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Employees Trainings, Conferences, Meetings 10,000$ 20,000$
2 Green Vernon Commission Trainings, Conferences, Meetings -$ 10,000$
10,000$ 30,000$
55 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1060 - HEALTH
2022-2023
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 Departmental Employees Various Memberships and Dues (SWANA, Air &
Waste, Recycling Market Dev. Zone, California Product
Stewardship Council, and Other)
5,000$ 5,000$
5,000$ 5,000$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Professional Publications Professional Publications and Subscriptions 1,000$ 2,000$
1,000$ 2,000$
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 Departmental Employees Professional and Technical Training 10,000$ 10,000$
2 Green Vernon Commission Professional and Technical Training -$ 5,000$
10,000$ 15,000$
Account No. 900000 - Capital Outlay Regular
Detailed FY2022 FY2023
Name Description Budget Budget
1 Electric Vehicle Three Nissan Leaf 200,000$ 200,000$
200,000$ 200,000$
56 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1031 POLICE
A B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 422,252$ 316,791$ 360,300$ 309,700$ (50,600)$
EXPENSES:
SALARIES 6,682,322$ 6,986,241$ 7,386,630$ 7,494,847$ 108,217$
BENEFITS 4,602,200 5,143,730 5,590,254 6,177,670 587,416
SUPPLIES/SERVICES 447,126 368,598 505,926 486,046 (19,880)
TOTAL EXPENSES 11,731,647 12,498,569 13,482,810 14,158,563 675,753
CAPITAL:
REVENUES 30,850$ 34,297$ -$ -$ -$
EXPENDITURES 149,182$ 269,198$ 373,200$ 265,000$ (108,200)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Administrative Secretary 1.00 77,989$ 80,858$ 83,265$ 84,919$ 1,654$
Civilian Court Officer 2.00 76,780 79,834 82,211 147,364 65,153
Police Captain 1.00 232,063 239,888 246,215 239,207 (7,008)
Police Chief 1.00 275,370 286,372 294,934 272,938 (21,996)
Police Community Services Officer 0.50 24,870 27,761 29,975 28,535 (1,440)
Police Dispatcher 6.50 509,575 531,245 550,242 561,073 10,831
Police Dispatcher, Lead 1.00 92,054 95,721 98,575 100,534 1,959
Police Lieutenant 2.00 355,285 381,889 415,564 394,958 (20,606)
Police Officer 33.00 3,298,420 3,498,801 3,640,029 3,715,263 75,234
Police Records Manager 1.00 109,178 113,532 101,081 109,270 8,189
Police Records Technician 2.00 102,697 111,861 110,774 111,535 761
Police Records Technician, Lead 1.00 64,083 66,629 68,609 69,970 1,361
Police Sergeant 7.00 1,009,197 1,051,561 1,081,556 1,054,781 (26,775)
Overtime 363,000 350,000 350,000 370,000 20,000
On-Call 5,000 5,000 5,000 5,000 -
Payout (excess vacation and sick hours)169,000 158,000 228,100 229,000 900
Shooting Pay 500 500 500 500 -
DEPARTMENT TOTALS 59.00 6,765,061$ 7,079,452$ 7,386,630$ 7,494,847$ 108,217$
57 of 167
CITY OF VERNON
Fund 011 Department 1031 - General Fund - Police Department
Budget Detail
2022-2023
DEPARTMENT:
011.1031 POLICE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES
011.1031.410480 False Alarm Fees 11,570$ 6,555 15,000$ 10,000$ (5,000)$
011.1031.420100 Vehicle Code Fines 48,800 22,518 50,000 40,000 (10,000)
011.1031.420110 Other Vehicle Fines 8,676 6,224 10,000 10,000 -
011.1031.420130 Vehicle Inspection Fee 2,288 484 2,000 1,000 (1,000)
011.1031.420510 Parking Citation Fees 71,445 39,207 30,000 30,000 -
011.1031.420515 Franchise Towing Fees 11,652 11,896 15,000 15,000 -
011.1031.420525 Impounded Vehicle Release Fees 2,344 2,100 3,000 3,000 -
011.1031.420530 DUI Vehicle Release Fees 7,344 1,872 3,000 3,000 -
011.1031.420535 Repossessed Vehicle Release Fees 135 150 300 200 (100)
011.2031.440100 Grant Revenues - Federal (Pass-through)55,935 32,911 110,000 75,000 (35,000)
011.3031.441010 COPS - SLESF Funds (State) 155,948 156,727 100,000 100,000 -
011.1031.466000 P.O.S.T. Reimbursement 26,879 10,869 1,000 1,500 500
011.1031.466600 Copies and Publications 18,089 15,573 18,000 18,000 -
011.1031.466900 Miscellaneous 1,148 8,444 3,000 3,000 -
TOTAL REVENUES 422,252$ 316,791$ 360,300$ 309,700$ (50,600)$
EXPENSES:
SALARIES:
011.1031.501010 Salaries - Regular 5,348,015$ 5,454,432 5,855,878$ 5,969,571$ 113,693$
011.1031.501012 Salaries - Premiums 930,766 1,008,143 1,114,473 1,005,878 (108,595)
011.1031.501020 Salaries - OT 250,567 375,527 350,000 370,000 20,000
011.2031.501020 Salaries - OT 33,063 47,706 - - -
011.3031.501010 Salaries - Regular 83,315 66,211 65,079 134,324 69,245
011.3031.501012 Salaries - Premiums 15,327 18,187 1,200 15,074 13,874
011.3031.501020 Salaries - OT 21,268 16,036 - - -
6,682,322 6,986,241 7,386,630 7,494,847 108,217
BENEFITS:
011.1031.502020 Retirement 3,294,131$ 3,718,512 4,228,047$ 4,636,508$ 408,461$
011.1031.502030 Insurance Premiums - Medical 892,889 920,425 975,101 985,345 10,244
011.1031.502060 FICA Taxes 89,122 93,388 106,145 106,509 364
011.1031.502070 Unemployment 1,127 (323) - 1,000 1,000
011.1031.502080 Workers' Compensation Claims 300,335 385,221 280,000 380,000 100,000
011.1031.502090 SIR Settlement Claims - 3,024 - -
011.2031.502030 Insurance Premiums - Medical 11 42 - - -
011.2031.502060 FICA Taxes 470 678 - - -
011.3031.502020 Retirement 7,636 7,830 - 40,020 40,020
011.3031.502030 Insurance Premiums - Medical 13,598 13,504 - 26,122 26,122
011.3031.502060 FICA Taxes 2,881 1,429 961 2,166 1,205
4,602,200 5,143,730 5,590,254 6,177,670 587,416
58 of 167
CITY OF VERNON
Fund 011 Department 1031 - General Fund - Police Department
Budget Detail
2022-2023
DEPARTMENT:
011.1031 POLICE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
SUPPLIES/SERVICES:
011.1031.520000 Supplies 44,807$ 52,787 46,500$ 46,500$ -$
011.1031.520050 Supplies - Community Outreach Consumables 504 175 - - -
011.1031.540000 Uniforms 28,886 14,695 12,800 12,800 -
011.1031.550000 Advertisement/Promotion 2,130 2,120 - - -
011.1031.560000 Utilities 6,648 6,648 6,600 6,600 -
011.1031.570000 Vehicle Expense 168,466 145,286 160,000 160,000 -
011.1031.590000 Repair & Maintenance 3,015 2,941 20,000 20,000 -
011.1031.594200 Professional Services - Admin 110,451 61,968 97,720 95,220 (2,500)
011.1031.596200 Professional Services - Other 28,266 37,543 98,680 78,680 (20,000)
011.1031.596500 Travel 30,046 20,226 30,000 30,000 -
011.1031.596550 Memberships 2,900 3,197 3,656 6,276 2,620
011.1031.596600 Books & Publications 1,085 1,755 1,970 1,970 -
011.1031.596700 Training 19,922 19,258 28,000 28,000 -
447,126 368,598 505,926 486,046 (19,880)
TOTAL EXPENSES 11,731,647$ 12,498,569$ 13,482,810$ 14,158,563$ 675,753$
CAPITAL
REVENUES
011.4031.441013 Grant Revenues - Federal Asset Forfeiture 30,850$ - -$ - -$
011.5031.441013 Grant Revenues - State Asset Forfeiture - 34,297 - - -
30,850$ 34,297$ -$ -$ -$
EXPENDITURES
011.1031.840000 Automobile 41,759$ 104,954 45,000$ 55,000 10,000$
011.1031.850000 Non-Automobile 107,424 164,244 328,200 210,000 (118,200)
149,182$ 269,198$ 373,200$ 265,000$ (108,200)$
59 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1031 - POLICE
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 DOOLEY/SDPE Duty and training ammunition 15,000$ 15,000$
2 STAPLES/OFFICE DEPOT Office supplies (including items obtained from the City
Warehouse)
9,078 9,078
3 VARIOUS VENDORS - FOLLOWING
PURCHASING REQUIREMENT
Office and necessary field supplies 13,752 11,000
4 VARIOUS VENDORS - FOLLOWING
PURCHASING REQUIREMENT
Shooting range supplies (firearms parts, cleaning solvents,
targets)
5,100 5,100
5 PEGASUS/SILVA'S PRINTING Paper-based orders (business cards, envelopes, citations)2,550 2,550
6 VENDOR TBD Dry cleaning service for jail and locker room towels 1,020 500
7 VARIOUS VENDORS Supplies for Department sponsored events 3,272
-
46,500$ 46,500$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS VENDORS - FOLLOWING
PURCHASING REQUIREMENT
Uniforms for newly hired civilian and sworn staff, helmets,
nametags, Sam Brown equipment for new sworn
personnel , rainwear, batons, handcuffs, badge repair and
replacement, patches, bulletproof vests, radio holders,
hazardous clothing, replacements for uniforms damaged
in the line of duty.
9,200$ 9,200$
2 RESERVE OFFICER Uniform stipend for one (1) Reserve Police Officer 3,600 3,600
12,800$ 12,800$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 CITY FIBER OPTICS CHARGE Adjusted Charge assessed by the Fiber Optics Department
(includes Internet)
6,600$ 6,600$
6,600$ 6,600$
60 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1031 - POLICE
2022-2023
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 CITY FUEL CHARGE BACK Vehicle fuel from the City of Vernon gas pumps 70,000$ 70,000$
2 CITY GARAGE CHARGE BACK Vehicle maintenance provided by the City of Vernon,
including car washing services
86,000 86,000
3 CITY ISSUED P-CARDS P-Cards issued for gas purchases for City owned vehicles 4,000 3,500
4 MUTUAL AID VEHICLE MAINTENANCE Area E Mutual Aid vehicle maintenance 500
160,000$ 160,000$
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS VENDORS - FOLLOWING
PURCHASING REQUIREMENT
Repairs for typewriters, weapons, laser guns, patrol unit
equipment, office furniture, jail equipment, shooting
range maintenance and miscellaneous maintenance
materials.
3,000$ 3,000$
2 LIBERTY MANUFACTURING Shooting range maintenance 2,000 2,000
3 VENDER TBD Radio Maintenance 15,000 15,000
20,000$ 20,000$
Account No. 594200 - Professional Services Administration
Detailed FY2022 FY2023
Name Description Budget Budget
1 HUNTINGTON PARK PD Outsourced Jail Booking Fees 75,000$ 70,000$
2 SO. EAST JUDICIAL DISTRICT Traffic Violation Ticket Processing Fees 16,000 16,000
3 DATA TICKET, INC Parking Citation Processing Service 5,000 5,000
4 BURRO CANYON Firearms Training Park Usage 600 600
5 BANDINI TRUCK TERMINAL Truck Weighing Service (Commercial Enforcement)100 100
6 VENDOR TO BE DETERMINED Medical Waste Removal Service 1,020 2,020
7 LANGUAGE LINE Language Translation Service 1,500
97,720$ 95,220$
61 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1031 - POLICE
2022-2023
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS VENDORS - FOLLOWING
PURCHASING REQUIREMENT
Background Investigator Services 20,000$ 16,000$
2 VARIOUS VENDORS - FOLLOWING
PURCHASING REQUIREMENT
Independent Internal Affairs Investigation Services 10,000 10,000
3 STACY MEDICAL CENTER Prisoner Pre-Booking Examinations 14,280 14,280
4 LEXIPOL Law enforcement policy manual
subscription/maintenance, training module
subscription/maintenance, and Cordico Wellness
application
11,000 33,400
5 VITAL MEDICAL Narcan Program 5,000 5,000
6 THOMPSON REUTERS Detective Investigative Search Engine - CLEAR 20,000
7 VERITONE, INC Audio and video redaction software 2,400
8 CI TECHNOLOGIES
Administrative Investigation and Use of Force Reporting
Software - IA Pro
16000
98,680$ 78,680$
Account No. 596500 - Travel
Event FY2022 FY2023
Name Name Budget Budget
1 VARIOUS EMPLOYEES MANDATED
TRAINING AND STAFF
DEVELOPMENT
Transportation, meals, hotels and other expenses
associated with employee training
30,000$ 30,000$
30,000$ 30,000$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 CA. ANNUAL MEMBERSHIP DUES Various State Assoc. & Agencies 570$ 2,445$
2 LA COUNTY ANNUAL DUES Various LA County Assoc. & Agencies 540 1,100
3 INTERNATIONAL ANNUAL DUES Various International Assoc. & Agencies 790 625
4 FEDERAL ANNUAL DUES Various Federal Assoc. & Agencies 100 450
5 AREA E DISASTER MGMT Yearly Membership Fee 1,656 1,656
3,656$ 6,276$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS VENDORS - FOLLOWING
PURCHASING REQUIREMENT
Current Editions: Various Directories, Legal Resources
and/or Manuals
1,970$ 1,970$
1,970$ 1,970$
62 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1031 - POLICE
2022-2023
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS MANDATED TRAINING OFFICERS & DETECTIVES: Advanced Rifle Course, Arrest &
Control, Tactical Communications, Search Warrants, Driver
Training, Street Racing, Gang Awareness, Active Shooter
Response, Use of Deadly Force, Traffic Accident
Investigation, Concerns of Police Survivors, DUI Seminar,
C.A.P.E. Conference, California Robbery Investigators
Seminar, Homicide Seminar, Interview and Interrogations,
Armorer Course, DARE Conference, TMS Update, CAL
Gangs, COPLink, Detective School, Web Based CCHRS,
Radar Operator Training, Amber Alert Training, Covert
Entry Training, Taser Update, Illegal Medical Marijuana
Dispensaries, Field Training Officer Update, Surveillance
Training, O.T.S. Seminar, Police Survival Seminar, Prop 69
DNA Training/Update, CNOA Conference, Terrorism
Liaison Officer Training, Internet Intelligence, Organized
Retail Crimes
28,000$ 28,000$
28,000$ 28,000$
Capital Expenditures
Detailed FY2022 FY2023
Name Description Budget Budget
1 Equipment - AUTO One (1) New DB/Admin Vehicle 45,000$
2 One (1) New Patrol Vehicle: Chevy Tahoe 55,000$
3 Equipment - NON-AUTO Emergency Equipment Package for one (1) New Patrol
Vehicle and one (1) DB/Admin Vehicle
25,000
4 Equipment - NON-AUTO Motorola Radio Lease - Final Payment 102,200
5 Equipment - NON-AUTO Nine (9) APX 8500 mobile radios 90,000
6 Equipment - NON-AUTO Encryption Key Loader 6,000
7 Equipment - NON-AUTO Ballistic Vests 45,000
8 Equipment - NON-AUTO
Office Furniture for Detective Bureau and Sergeants Office
60,000
9 Equipment - NON-AUTO Office Furniture for Records Division and Report Writing
Room
60,000
10 Equipment - NON-AUTO Bi-Directional Amplifier 100,000
11 Equipment - NON-AUTO Emergency Equipment Package for one (1) New Patrol
Vehicle
20,000
12 Equipment - NON-AUTO Speed Trailer 15,000
13 Equipment - NON-AUTO Six (6) Flock Cameras 15,000
373,200$ 265,000$
63 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1033 Fire
A B B-A
Actuals
2018-19
Actuals
2019-20
Budget
2020-21
Budget
2021-22
Increase/
(Decrease)
TOTAL REVENUES 692,417$ 152,741$ 20,000$ 20,400$ 400$
EXPENDITURES:
SALARIES 9,650,107$ 4,200,218$ 51,129$ -$ (51,129)$
BENEFITS 6,188,246 4,756,641 4,598,500 4,863,948 265,448
SUPPLIES/SERVICES 852,242 11,099,090 16,803,750 16,991,866 188,116
CAPITAL - - - - -
TOTAL EXPENDITURES 16,690,595$ 20,055,948$ 21,453,379$ 21,855,814$ 402,435$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budgeted Budgeted Budgeted Proposed (Decrease)
Administrative Assistant, Senior 0.00 32,181$ 35,415$ -$ -$ -$
Assistant Fire Marshal 0.00 46,800 - - - -
Fire Administrative Analyst 0.00 49,509 54,527 - - -
Fire Battalion Chief 0.00 332,116 115,603 - - -
Fire Captain 0.00 1,118,097 961,681 - - -
Fire Chief 0.00 134,878 129,421 - - -
Fire Code Inspector 0.00 11,137 32,266 51,129 - (51,129)
Fire Engineer 0.00 958,154 793,726 - - -
Firefighter 0.00 950,106 704,737 - - -
Firefighter/Paramedic 0.00 680,790 543,278 - - -
Firefighter/Paramedic Coordinator 0.00 63,121 61,914 - - -
Overtime 950,000 750,000 - - -
In-Lieu Holiday Payout - - - - -
Payout (excess vacation and sick hours)- 128,000 - - -
DEPARTMENT TOTALS - 5,326,889$ 4,310,568$ 51,129$ -$ (51,129)$
64 of 167
CITY OF VERNON
Fund 011 Department 1033 - General Fund - Fire Department
Budget Detail
2022-2023
DEPARTMENT:
011.1033 Fire
A B B-A
Actuals
2018-19
Actuals
2019-20
Budget
2021-22
Budget
2021-22
Increase/
(Decrease)
REVENUES
011.1033.410211 Fire Permit Fees 64,180$ 20,760 -$ -$ -$
011.1033.410212 Alarm Permits 1,258 136 - - -
011.1033.410270 Filming Permits 15,318 16,467 20,000 20,400 400
011.1033.410271 Special Event Permit Fees 1,206 268 - - -
011.1033.410430 Annual Business Fire Inspection 3,137 56 - - -
011.1033.410460 Annual Business Fire Re-Inspection - 9 - - -
011.1033.410470 Five Year Sprinkler System Testing 9,400 3,572 - - -
011.1033.410490 Fire Extinguishing Training 378 - - - -
011.1033.450110 Fire Service (Santa Ana College)37,232 - - - -
011.1033.461100 Fines and Penalties - 100 - - -
011.1033.466200 Plan Check Fees 45,351 14,980 - - -
011.1033.466600 Copies and Publications 75 15 - - -
011.1033.466900 Miscellaneous Revenues 1,058 492 - - -
011.1033.467000 Strike Team Overtime 190,574 - - - -
011.1033.467100 EMS Transport Fees 279,207 86,240 - - -
011.2033.440100 Federal Grant Revenues (Haz
Mat/USAR/Assistance Firefighter)
44,044 9,646 - - -
TOTAL REVENUES 692,417$ 152,741$ 20,000$ 20,400$ 400$
EXPENDITURES:
SALARIES:
011.1033.501010 Salaries - Regular 5,711,886$ 1,818,000 51,129$ -$ (51,129)$
011.1033.501012 Salaries - Premiums 2,137,085 1,859,240 - - -
011.1033.501020 Salaries - O.T. - Salaries 1,801,136 522,978 - - -
9,650,107 4,200,218 51,129 - (51,129)
BENEFITS:
011.1033.502020 Retirement 4,867,294$ 4,178,084 4,383,500$ 4,863,948$ 480,448$
011.1033.502030 Insurance Premiums - Medical 903,523 291,028 - - -
011.1033.502060 FICA Taxes 147,774 51,431 - - -
011.1033.502070 Unemployment - 4,950 - - -
011.1033.502080 Claims Expenditure - Worker's Comp 269,656 231,147 215,000 - (215,000)
6,188,246 4,756,641 4,598,500 4,863,948 265,448
SUPPLIES/SERVICES:
011.1033.503035 Insurance Premiums (Property)-$ - -$ -$ -$
011.1033.510000 Office Expense 383 - - - -
011.1033.520000 Supplies 58,798 23,683 - - -
011.1033.540000 Uniforms 10,578 32 - - -
011.1033.560000 Utilities 126,090 82,858 3,780 8,500 4,720
011.1033.570000 Vehicle Expense 152,919 62,749 - - -
011.1033.590000 Repair & Maintenance 29,438 9,735 - - -
011.1033.590110 Repair & Maintenance - IT 515 - - - -
011.1033.594000 Emergency Management Services 289,407 23,554 - - -
011.1033.595200 Professional Services - Technical 27,595 9,701 - - -
011.1033.596200 Professional Services - Other 141,274 10,883,200 16,799,970 16,983,366 183,396
011.1033.596550 Membership Dues 3,708 2,915 - - -
011.1033.596600 Books & Publications 424 - - - -
011.1033.596700 Employee Development & Training 11,112 663 - - -
852,242 11,099,090 16,803,750 16,991,866 188,116
65 of 167
CITY OF VERNON
Fund 011 Department 1033 - General Fund - Fire Department
Budget Detail
2022-2023
DEPARTMENT:
011.1033 Fire
A B B-A
Actuals
2018-19
Actuals
2019-20
Budget
2021-22
Budget
2021-22
Increase/
(Decrease)
CAPITAL
011.1033.850000 Capital Equipment - Non Auto -$ - -$ -$ -$
- - - - -
TOTAL EXPENDITURES 16,690,595$ 20,055,948$ 21,453,379$ 21,855,814$ 402,435$
66 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1033 - FIRE
2022-2023
Account No. 560000 - Utilities
Detailed FY 2022 FY 2023
Name Description Budget Budget
1 Electric Services, So. Cal. Gas Co., California Water Services,
Maywood Mutual #3
Special Fire Protection Charge Fire Alarm System; 3,780$ 8,500$
3,780$ 8,500$
Account No. 596200 - Professional Services - Other
Detailed FY 2022 FY 2023
Name Description Budget Budget
1 Los Angeles County Fire Personnel Contracted Services 16,799,970 16,983,366
16,799,970$ 16,983,366$
67 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1040 Public Works Administration
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 14,167,098$ 15,285,780$ 15,504,853$ 15,525,000$ 20,147$
EXPENSES:
SALARIES 353,451$ 640,130$ 720,001$ 824,841$ 104,840$
BENEFITS 218,357 304,724 390,581 522,213 131,632
SUPPLIES/SERVICES 3,405 4,501 5,900 6,750 850
TOTAL EXPENSES 575,213$ 949,355$ 1,116,482$ 1,353,804$ 237,322$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Administrative Analyst 1.00 96,213$ 84,271$ 91,139$ 97,610$ 6,471$
Administrative Assistant, Senior 2.00 120,982 114,212 167,385 137,259 (30,126)
Administrative Secretary 1.00 - - 258,711 96,365 (162,346)
Director of Public Works 1.00 221,884 239,576 198,946 263,789 64,843
Deputy Director of Public Works 1.00 - - 225,918 225,918
Overtime 5,000 5,000 3,000 3,000 -
Payout (vacation and sick excess hours)2,001 - 820 900 80
DEPARTMENT TOTALS 6.00 446,080$ 443,059$ 720,001$ 824,841$ 104,840$
68 of 167
CITY OF VERNON
Fund 011 Department 1040 - General Fund - Public Works Administration Department
Budget Detail
2022-2023
DEPARTMENT:
011.1040 Public Works Administration
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
011.1040.400311 BNSF In-Lieu Parcel Taxes 624,792$ 634,639 624,792$ 625,000$ 208$
011.1040.400900 Parcel Taxes - Warehouse 11,435,170 12,537,964 12,684,899 12,700,000 15,101
011.1040.400950 Parcel Taxes - Safety 2,102,946 2,113,133 2,195,162 2,200,000 4,838
011.1040.420520 Community Service Revenues 3,729 - - - -
011.1040.466600 Copies and Publications 185 44 - - -
011.1040.466900 Miscellaneous Revenues 276 - - - -
TOTAL REVENUES 14,167,098$ 15,285,780$ 15,504,853$ 15,525,000$ 20,147$
EXPENSES:
SALARIES
011.1040.501010 Salaries - Regular 332,402$ 622,786 690,735$ 795,112$ 104,377$
011.1040.501012 Salaries - Premiums 18,757 17,344 26,266 26,729 463
011.1040.501020 Salaries - O.T.2,293 - 3,000 3,000 -
353,451 640,130 720,001 824,841 104,840
BENEFITS
011.1040.502020 Retirement 179,704$ 224,143 302,139$ 401,329$ 99,190$
011.1040.502030 Insurance Premiums - Medical 34,244 61,945 70,002 103,924 33,922
011.1040.502060 FICA Taxes 4,409 8,980 10,440 11,960 1,520
011.1040.502070 Unemployment - 9,656 8,000 5,000 (3,000)
218,357 304,724 390,581 522,213 131,632
SUPPLIES/SERVICES
011.1040.520000 Supplies 1,074$ 3,521 1,000$ 1,200$ 200$
011.1040.540000 Uniforms - - 400 500 100
011.1040.550000 Advertisement/Promotion - - 500 500 -
011.1040.596500 Travel 176 - - - -
011.1040.596600 Books & Publications - 120 300 300 -
011.1040.596700 Training 2,155 375 3,700 4,250 550
3,405 4,501 5,900 6,750 850
TOTAL EXPENSES 575,213$ 949,355$ 1,116,482$ 1,353,804$ 237,322$
69 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1040 - PUBLIC WORKS ADMINISTRATION
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 OFFICE DEPOT BUSINESS SOLUTIONS Office Supplies 800$ 1,000$
2 UPS Office Supplies 200 200
1,000$ 1,200$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 SPECIALTY APPAREL Departmental Uniform Shirts 400$ 500$
400$ 500$
Account No. 550000 - Advertisement / Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 PROFESSIONAL PUBLICATIONS Publishing of notices, information material, and legal
documents
500$ 500$
500$ 500$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 CEQA Various Publications Updates 300$ 300$
300$ 300$
Account No. 596700 - Training
Detailed FY2022 FY2023
Type Description Budget Budget
1 LEAGUE OF CALIFORNIA CITIES Annual Conference 1,200$ 1,500$
2 LEAGUE OF CALIFORNIA CITIES Public Works Officers Institute 2,500 2,750
3,700$ 4,250$
70 of 167
DEPARTMENT:
011.1041 BUILDING REGULATIONS AND PLANNING
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 883,956$ 1,180,263$ 1,092,575$ 1,612,000$ 519,425$
EXPENDITURES:
SALARIES 559,328$ 554,458$ 703,081$ 718,381$ 15,300$
BENEFITS 177,789 238,870 354,119 394,336 40,217
SUPPLIES/SERVICES 115,976 307,561 917,780 1,095,730 177,950
TOTAL EXPENDITURES 853,092$ 1,100,889$ 1,974,980$ 2,408,447$ 433,467$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Assistant Planner 1.00 87,608$ 90,185$ 92,840$ 94,662$ 1,822$
Building and Planning Manager - 139,934 - - - -
Building Inspector, Senior 1.00 127,005 130,765 134,637 137,295 2,658
Code Enforcement Officer 1.00 - - 78,730 78,180 (550)
Electrical Inspector - - - - - -
Electrical Inspector, Senior 1.00 112,453 115,820 119,289 121,670 2,381
Permit Technician 1.00 68,811 125,152 134,596 61,424 (73,172)
Permit Technician, Senior 1.00 - - - 77,980 77,980
Plumbing and Mechanical Inspector, Senior 1.00 113,953 117,320 120,789 123,170 2,381
Overtime 2,000 2,000 2,000 2,000 -
Payout (vacation and sick excess hours)3,000 11,700 20,200 22,000 1,800
DEPARTMENT TOTALS 7.00 654,764$ 592,942$ 703,081$ 718,381$ 15,300$
CITY OF VERNON
Budget Summary
2022-2023
71 of 167
DEPARTMENT:
011.1041 BUILDING REGULATIONS AND PLANNING
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES
011.1041.401650 State Fee - SB1186 8,164$ 8,177 10,000$ 12,000$ 2,000$
011.1041.410210 Building Permit Fees 558,766 710,554 700,000 1,000,000 300,000
011.1041.410280 Conditional Use Permits (2,430) 37,839 30,000 40,000 10,000
011.1041.461100 Fines and Penalties 11,303 10,236 15,000 20,000 5,000
011.1041.466200 Plan Check Fees 285,895 375,163 300,000 500,000 200,000
011.1041.466220 Green Building Standards Fee 17,841 31,429 30,000 25,000 (5,000)
011.1041.466600 Copies and Publications - 41 75 (75)
011.1041.466900 Miscellaneous Revenues 4,416 6,900 7,500 10,000 2,500
011.1041.468400 Variances - (75) - 5,000 5,000
TOTAL REVENUES 883,956$ 1,180,263$ 1,092,575$ 1,612,000$ 519,425$
EXPENDITURES:
SALARIES
011.1041.501010 Salaries - Regular 494,473$ 474,266 627,567$ 636,764$ 9,197$
011.1041.501012 Salaries - Premiums 63,433 71,696 73,514 79,617 6,103
011.1041.501020 Salaries - O.T.1,422 8,495 2,000 2,000 -
559,328 554,458 703,081 718,381 15,300
BENEFITS
011.1041.502020 Retirement 89,808$ 159,162 224,527$ 273,687$ 49,160$
011.1041.502030 Insurance Premiums - Medical 81,946 73,939 119,397 110,232 (9,165)
011.1041.502060 FICA Taxes 6,035 5,768 10,195 10,417 222
177,789 238,870 354,119 394,336 40,217
SUPPLIES/SERVICES
011.1041.520000 Supplies 5,399$ 17,548 12,500$ 12,500$ -$
011.1041.540000 Uniforms - - 600 1,000 400
011.1041.550000 Advertisement/Promotion - - 1,000 1,000 -
011.1041.570000 Vehicle Expense 9,069 9,539 6,300 8,300 2,000
011.1041.595200 Professional Services - Technical 94,386 278,202 886,000 1,056,000 170,000
011.1041.596500 Travel 20 - 2,000 2,000 -
011.1041.596550 Memberships 671 215 880 1,330 450
011.1041.596600 Books & Publications 3,895 208 500 2,000 1,500
011.1041.596700 Training 2,536 1,849 8,000 11,600 3,600
115,976 307,561 917,780 1,095,730 177,950
CAPITAL
011.1041.900000 Capital Outlays -$ - -$ 200,000$ 200,000$
- - - 200,000 200,000
TOTAL EXPENDITURES 853,092$ 1,100,889$ 1,974,980$ 2,408,447$ 433,467$
CITY OF VERNON
Budget Detail
2022-2023
Fund 011 Department 1041 - Building Regulations Fund Public Works Department
72 of 167
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS VENDORS FOLLOWING PROCUMENT POLICIES Office Supplies 2,000$ 2,000$
2 UPS Office Supplies 2,500 2,500
3 OFFICE DEPOT BUSINESS SOLUTIONS Office Supplies 2,500 2,500
4 SILVA'S PRINTING NETWORK Office Supplies 3,000 3,000
5 PLANBAGS.COM Office Supplies 500 500
6 WAREHOUSE INVENTORY CONSUMPTION Office Supplies 2,000 2,000
12,500$ 12,500$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 SPECIALTY APPAREL Departmental Uniform Shirts 600$ 1,000$
600$ 1,000$
Account No. 550000 - Advertisement/Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 PROFESSIONAL PUBLICATIONS Publishing of required notices 1,000$ 1,000$
1,000$ 1,000$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 FUEL FROM CITY PUMPS Gas Usage 3,000$ 5,000$
2 CITY GARAGE VEHICLE REPAIRS Garage Work Orders 3,000 3,000
3 XPRESS WASH, INC.Washing city vehicles 300 300
6,300$ 8,300$
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1041 - BUILDING REGULATIONS AND PLANNING
2022-2023
73 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1041 - BUILDING REGULATIONS AND PLANNING
2022-2023
Account No. 595200 - Professional Services Technical
Detailed FY2022 FY2023
Name Description Budget Budget
1 MEL GREEN / INTERWEST On-Call Structural Plan Check & Inspection & CaSP
Services
125,000 175,000
2 DEPARTMENT OF CONSERVATION Strong Motion Instrumentation Plans & Seismic Haz.
Mapping
15,000 15,000
3 THE ARROYO GROUP Housing Element Update 60,000 60,000
4 TBD File Scanning 200,000 200,000
5 THE ARROYO GROUP West Side Specific Plan 480,000 600,000
6 CALIFORNIA BUILDING STANDARDS Revolving Fund 5,000 5,000
7 LOS ANGELES COUNTY ASSESSOR Maps 1,000 1,000
886,000$ 1,056,000$
Account No. 596500 - Travel
Detailed FY2022 FY2023
Name Description Budget Budget
1 CALBO WORKSHOP Mileage and parking for staff to attend workshop 2,000$ 2,000$
2,000$ 2,000$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 CALBO Membership Dues 250$ 250$
2 IAPMO Membership Dues 155 155
3 IAEI Membership Dues 125 125
4 ICC Membership Dues 350 350
5 CACEO Membership Dues 300
6 AEP Membership Dues 150
880$ 1,330$
74 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1041 - BUILDING REGULATIONS AND PLANNING
2022-2023
Account No. 596600 - Books & Publications
Detailed 2,023 FY2022
Name Description Budget Budget
1 VARIOUS VENDORS FOLLOWING PROCUMENT POLICIES Code Books 500$ 2,000$
500$ 2,000$
..
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 CALBO Training 4,000$ 4,500$
2 VARIOUS SERVICE PROVIDERS Required staff training/seminars 4,000 4,500
3 CACEO Training - Annual + Classes + Pepper Spray Cert 1,200
4 Misc Training 1,000
5 AEP Training - Spring + Fall 400
8,000$ 11,600$
Capital Expenditures
Detailed FY2022 FY2023
Name Description Budget Budget
1 F-150 Lightning EVs 4 - Trucks for Inspectors and Code Enforcment -$ 200,000$
-$ 200,000$
75 of 167
DEPARTMENT:
011.1043 STREET OPERATIONS
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 371,665$ 983,734$ 883,782$ 1,012,100$ 128,318$
EXPENSES:
SALARIES 1,732,799$ 1,511,704$ 1,542,124$ 1,528,066$ (14,058)$
BENEFITS 832,475 820,483 878,618 960,568 81,950
SUPPLIES/SERVICES 1,274,602 1,058,286 2,024,560 2,315,910 291,350
TOTAL EXPENSES 3,839,876$ 3,390,474$ 4,445,302$ 4,804,544$ 359,242$
CAPITAL:
REVENUES 157,683$ 1,048,088$ 7,001,560$ 7,415,700$ 414,140$
EXPENDITURES 852,607$ 1,640,744$ 8,700,000$ 14,654,700$ 5,954,700$
Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Salaries (Decrease)
Assistant Engineer - 82,017$ -$ -$ -$ -$
Associate Engineer 1.00 - - 107,204 114,696 7,492
Engineering Aide 1.00 - 98,010 74,980 72,838 (2,142)
Project Engineer 1.00 366,529 386,033 143,087 149,348 6,261
Public Works Inspector 1.00 - 72,797 82,666 84,319 1,653
Public Works Project Coordinator - - - - - -
Public Works Superintendent - 57,662 118,578 - - -
Stormwater and Special Project Analyst - 133,270 137,218 - - -
Street Foreman - - - - - -
Street Maintenance Supervisor 1.00 121,038 124,619 128,306 130,838 2,532
Street Maintenance Worker 9.00 409,595 412,028 547,841 547,468 (373)
Street Maintenance Worker, Lead 1.00 96,318 104,932 113,346 88,027 (25,319)
Street Maintenance Worker, Senior 4.00 394,285 320,232 324,494 319,532 (4,962)
Warehouse Worker - 28,866 - - - -
Warehouse Worker, Senior - 149,927 - - - -
Overtime 50,000 50,000 9,000 9,000 -
Payout (vacation and sick excess hours)16,056 3,600 9,200 10,000 800
Stand-by 4,000 4,000 2,000 2,000 -
DEPARTMENT TOTALS 19.00 1,909,563$ 1,832,047$ 1,542,124$ 1,528,066$ (14,058)$
CITY OF VERNON
Budget Summary
2022-2023
76 of 167
DEPARTMENT:
011.1043 STREET OPERATIONS
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
011.1043.400610 Prop A Local Return 4,059$ 6,056 5,998$ 6,000$ 2$
011.1043.400630 Prop C Local Return 3,367 5,023 4,975 5,000 25
011.1043.401205 Stormwater- Measure W-SCWP - 718,816 703,000 703,000 -
011.1043.401206 Measure R Local Return 2,521 3,773 3,731 4,000 269
011.1043.401207 Measure M Local Return 2,837 4,275 4,229 4,300 71
011.1043.401208 Road Maintenance and Rehab - SB1 5,117 5,460 5,363 5,000 (363)
011.1043.401209 TDA Article 3 - - 5,000 8,500 3,500
011.1043.407500 State Gas Tax - 2103 2,097 1,999 2,126 2,200$ 74
011.1043.407510 State Gas Tax - 2105 1,542 1,517 1,564 1,500$ (64)
011.1043.407600 State Gas Tax - 2106 5,686 5,648 5,766 5,000$ (766)
011.1043.407700 State Gas Tax - 2107 1,949 2,053 1,980 1,600$ (380)
011.1043.407800 State Gas Tax - 2107.5 1,033 992 1,050 1,500$ 450
011.1043.410290 Issuance Fees 47,910 13,363 19,000 22,500$ 3,500
011.1043.410300 Franchises and Agreements 22,819 24,328 10,000 7,000$ (3,000)
011.1043.420520 Community Services Revenues 20,018 10,926 9,000 30,000$ 21,000
011.1043.450120 Engineering Inspection Fees 141,600 86,792 50,000 100,000$ 50,000
011.1043.466200 Plan Check Fees 106,961 83,709 50,000 100,000$ 50,000
011.1043.466230 Annual Fee 2,148 1,156 1,000 - (1,000)
011.1043.600910 Other Income - - - 5,000 5,000
TOTAL REVENUES 371,665$ 983,734$ 883,782$ 1,012,100$ 128,318$
EXPENSES:
SALARIES
011.1043.501010 Salaries - Regular 1,448,228$ 1,328,634 1,419,772$ 1,421,995$ 2,223$
011.1043.501012 Salaries - Premiums 276,297 175,108 113,352 97,071 (16,281)
011.1043.501020 Salaries - O.T.8,274 7,962 9,000 9,000 -
1,732,799 1,511,704 1,542,124 1,528,066 (14,058)
BENEFITS
011.1043.502020 Retirement 474,378$ 474,468 504,536$ 604,304$ 99,768$
011.1043.502030 Insurance Premiums - Medical 335,389 309,645 351,721 334,107 (17,614)
011.1043.502060 FICA Taxes 22,709 21,514 22,361 22,157 (204)
011.1043.502090 Claims Expenditure - SIR Settlements - 14,857 - - -
832,475 820,483 878,618 960,568 81,950
SUPPLIES/SERVICES
011.1043.520000 Supplies 115,336$ 324,345 141,000$ 141,000$ -$
011.1043.540000 Uniforms 5,768 3,370 5,000 5,000 -
011.1043.550000 Advertisement/Promotion - 640 700 72,850 72,150
011.1043.560000 Utilities 53,441 54,169 47,060 47,060 -
011.1043.570000 Vehicle Expense 97,101 113,447 155,300 156,000 700
011.1043.590000 Repair & Maintenance 609,425 364,450 577,500 1,051,000 473,500
011.1043.593200 Professional Services - Legal - 6,542 5,000 5,000 -
011.1043.595200 Professional Services - Technical 203,114 67,716 461,000 410,000 (51,000)
011.1043.596200 Professional Services - Other 54,038 103,232 177,000 274,500 97,500
011.3043.596200 Professional Services - Other 114,788 - 414,000 110,000 (304,000)
011.1043.596500 Travel 595 - 2,500 5,000 2,500
011.1043.596550 Membership Dues 15,575 18,280 17,500 17,500 -
011.1043.596600 Books & Publications 866 40 1,000 1,000 -
011.1043.596700 Training 4,555 2,054 20,000 20,000 -
1,274,602 1,058,286 2,024,560 2,315,910 291,350
TOTAL EXPENSES 3,839,876$ 3,390,474$ 4,445,302$ 4,804,544$ 359,242$
CITY OF VERNON
Fund 011 Department 1043 - General Fund - Street Operations Department
Budget Detail
2022-2023
77 of 167
DEPARTMENT:
011.1043 STREET OPERATIONS
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
CITY OF VERNON
Fund 011 Department 1043 - General Fund - Street Operations Department
Budget Detail
2022-2023
CAPITAL
REVENUES
011.2043.440100 Grant Revenues - Federal -$ 1,048,088 7,000,000$ 7,000,000$ -$
011.3043.440100 Grant Revenues - State 157,683 - 1,560 415,700 414,140
157,683$ 1,048,088$ 7,001,560$ 7,415,700$ 414,140$
EXPENDITURES
011.1043.900000 Capital Outlays 705,657$ 1,614,558 940,000$ 6,279,000 5,339,000
011.1043.840000 Capital Equipment - Auto 99,465 - 250,000 960,000 710,000
011.2043.900000 Capital Outlays - Federal Funding 34,453 26,186 7,400,000 7,000,000 (400,000)
011.3043.900000 Capital Outlays - State Funding 13,032 - 110,000 415,700 305,700
852,607$ 1,640,744$ 8,700,000$ 14,654,700$ 5,954,700$
78 of 167
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 CITY WAREHOUSE Inventory Consumption 50,000$ 50,000$
2 PACIFIC PRODUCTS & SERVICES Materials and Supplies 15,000 15,000
3 JCL BARRICADE COMPANY Materials and Supplies 8,000 8,000
4 HAWKINS TRAFFIC SAFETY SUPPLY Materials and Supplies 6,500 6,500
5 VULCAN MATERIALS COMPANY Materials and Supplies 5,500 5,500
6 HOME DEPOT CREDIT SERVICES Materials and Supplies 5,500 5,500
7 ZUMAR INDUSTRIES Materials and Supplies 3,000 3,000
8 VARIOUS VENDORS BASED ON PROCUREMENT
REQUIREMENT Materials and Supplies 5,500 5,500
9 CATALINA PACIFIC CONCRETE Materials and Supplies 20,000 20,000
10 HANSON AGGREGATES Materials and Supplies 15,000 15,000
11 A-THRONE COMPANY, INC.Materials and Supplies 2,000 2,000
12 GRAINGER COMPANY Materials and Supplies 2,500 2,500
13 CONTECH Materials and Supplies 2,500 2,500
141,000$ 141,000$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 SPECIALTY APPAREL Uniforms 5,000$ 5,000$
5,000$ 5,000$
Account No. 550000 -
Advertisement/Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 PROFESSIONAL PUBLICATIONS Publishing of Notices 500$ 1,200$
2 NPDES Stormwater Education 200 150
3 PLANET BIDS Web Based Publishings for Municipalities - 1,500
4 ACAD Civil 3d 3-year subscription 10,000
5 CAD Monitors Touch Screen 3 monitors 60,000
700$ 72,850$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 VPU Interfund Utilities 41,000$ 41,000$
2 THE GAS COMPANY Natural Gas Service 3,000 3,000
3 FIBER OPTICS Interfund Utilities 1,560 1,560
4 SOUTHERN CALIFORNIA EDISON Street and Traffic Signal Service 1,500 1,500
47,060$ 47,060$
2022-2023
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1043 - STREET OPERATIONS
79 of 167
2022-2023
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1043 - STREET OPERATIONS
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 CITY GARAGE Work Orders 115,000$ 115,000$
2 CITY PROVIDED FUEL Gas Usage 40,000 40,000
3 XPRESS WASH, INC.Washing city vehicles 300 1,000
155,300$ 156,000$
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 Clean Streets Street Sweeping 130,000$ 340,000$
2 TBD Traffic Signal Repair & Maintenance 110,000 175,000
3 TBD Annual Street Striping (misc - traffic)50,000 75,000
4 RON'S MAINTENANCE Catch Basin Cleaning 50,000 50,000
5 West Coast Arborist Tree Trimming 100,000 125,000
6 VARIOUS VENDORS BASED ON PROCUREMENT
REQUIREMENT Estimated Other Repairs & Maintenance 10,000 10,000
7 VARIOUS VENDORS BASED ON PROCUREMENT
REQUIREMENT Sewer Cleaning and Emergency Repairs 10,000 10,000
8 CITY OF L.A. DEPT. OF TRANSP. Traffic Signal Maintenance 8,500 8,500
9 TBD Sewer System Master Plan/Flow/ Video Inspection -
10 SURVEY MONUMENTS Surveys 2,500 2,500
11 COUNTY OF LOS ANGELES Traffic Signal Maintenance 5,000 5,000
12 VARIOUS VENDORS BASED ON PROCUREMENT
REQUIREMENT Survey Equipment Maintenance 1,500 -
13 VARIOUS VENDORS BASED ON PROCUREMENT
REQUIREMENT Emergency Sewers & Public Works Repairs 100,000 250,000
577,500$ 1,051,000$
Account No. 593200 - Professional Services -
Legal
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS VENDORS BASED ON PROCUREMENT
REQUIREMENT Legal Services for NPDES Matters 5,000$ 5,000$
5,000$ 5,000$
80 of 167
2022-2023
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1043 - STREET OPERATIONS
Account No. 595200 - Professional Services
Technical
Detailed FY2022 FY2023
Name Description Budget Budget
1 GATEWAY WATER MANAGEMENTAUTHORITY Matching funds (50%) of Phase I for John Anson Ford Park 60,000$ -$
2 GATEWAY WATER MANAGEMENT AUTHORITY Watershed Management Program Plan Implementation
Studies 60,000 60,000
3 COUNTY OF LOS ANGELES Public works road fund 15,000 15,000
4 VARIOUS CONSULTANTS BASED ON
PROCUREMENT REQUIREMENT Estimated on-call consulting services costs 125,000 125,000
5 CROSSROADS Data entry for traffic incidents 1,000 -
6 GATEWAY WATER MANAGEMENT AUTHORITY Municipal NPDES Permit On-Call Services (ROWD)10,000 10,000
7 TBD Design and Construction Survey 175,000 100,000
8 TBD Construction Management 15,000 100,000
461,000$ 410,000$
Account No. 596200 - Professional Services
Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 GATEWAY WATER MANAGEMENT AUTHORITY Coordinated Integrated Monitoring Plan 50,000$ 50,000$
2 GATEWAY CITIES I710 EIR/EIS Report, TMDL Coordination Plan 15,000 15,000
3 HAUL-AWAY RUBBISH CO., INC.Solid waste collection/hauling 35,000 75,000
4 UNITED PUMPING SERVICES, INC.Emergency Environmental Spill Cleanup Services 10,000 50,000
5 COALITION FOR PRACTICAL REGULATION
(NPDES)Professional services 5,000 5,000
6 SWRCB System permitting fees 7,500 7,500
7 VARIOUS CONSULTANTS BASED ON
PROCUREMENT REQUIREMENT Bacteria TMDL monitoring 3,000 3,000
8 VARIOUS CONSULTANTS BASED ON
PROCUREMENT REQUIREMENT Metals TMDL monitoring 1,500 1,500
9 VARIOUS CONSULTANTS BASED ON
PROCUREMENT REQUIREMENT Harbor Toxics TMDL monitoring 1,000 1,000
10 VARIOUS CONSULTANTS BASED ON
PROCUREMENT REQUIREMENT Traffic Engineering Services 25,000 25,000
11 TBD Contribution to legislation - zinc 3,000
12 SOUTH COAST A.Q.M.D.Emission & registration fees 1,000 1,500
13 TBD Homeless Encampment Program 20,000 40,000
177,000$ 274,500$
81 of 167
2022-2023
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1043 - STREET OPERATIONS
Account No. 596200 - Professional Services
Other - Grant Funded 3043
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS CONSULTANTS BASED ON
PROCUREMENT REQUIREMENT California High Speed Rail Project 150,000$ 110,000$
150,000$ 110,000$
Account No. 596500 - Travel
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS DEPARTMENT EMPLOYEES Staff training 2,500$ 5,000$
2,500$ 5,000$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 CASQA Memberships 500$ 500$
2 VELOCITY EHS Annual Subscription 1,500 1,500
3 MUNICIPAL MANAGEMENT ASSOC.Memberships 500 500
4 GATEWAY WATER MANAGEMENT AUTHORITY Annual Membership Dues 15,000 15,000
17,500$ 17,500$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS PROFESSIONAL PUBLICATIONS Publications 1,000$ 1,000$
1,000$ 1,000$
82 of 167
2022-2023
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1043 - STREET OPERATIONS
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 VARIOUS CONSULTANTS BASED ON
PROCUREMENT REQUIREMENT
Training (i.e. confined space, trench shoring, pavement
design, traffic control, stormwater, etc.)20,000$ 20,000$
20,000$ 20,000$
Capital Expenditures
Detailed FY2022 FY2023
Name Description Budget Budget
1 Equipment Bobcat Skid steer and accessories 150,000
2 Equipment 1 F-150 Lighting EV Engineering Pool Truck 50,000
3 Equipment 1 F-150 lighting pickup truck Street Crew 100,000 50,000
4 Equipment 1 Sign Truck Street Crew 100,000
5 Equipment 1 Utility Truck 80,000
6 Equipment 2 Dump Trucks 180,000
7 Project Pavement Management Plan Implementation 500,000 4,000,000
8 Project Gateway Arch 200,000 500,000
9 Project Center Median Entry monuments 150,000 500,000
10 Project Striping 50,000 200,000
11 Equipment Sign Shop equipment and materials 40,000 45,000
12 Equipment Warning Devices (lighted signs/crosswalks etc.)120,000
13 Project *Atlantic Blvd Bridge Widening over LA River - Design and
Right of Way 7,400,000 7,000,000
14 Project **California High Speed Rail Project**110,000 110,000
15 Project Railroad Spur + Vacant Lot Clean-up 90,000
16 Tree well infrasturucture Project Infiltrating Tree Boxes + Trees 264,000 474,000
17 ADA Implementation Annual Implementation 250,000
18 Catch Basin Retrofit Safe Clean Drinking Water to Make CB Repairs 100,000
19 Traffic Signal Upgrade**HSIP funded Cycle 9 (Signal Balls/Dyrnamic Speed
Warnings)305,700
20 Equipment Broom Bear Sweeper 500,000
8,700,000$ 14,654,700$
83 of 167
DEPARTMENT:
011.1046 CITY GARAGE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES -$ -$ 375,000$ 400,000$ 25,000$
EXPENDITURES:
SALARIES 329,704$ 317,190$ 357,808$ 375,633$ 17,825$
BENEFITS 152,919 164,637 200,372 225,724 25,352
SUPPLIES/SERVICES 280,051 358,286 305,400 387,150 81,750
CAPITAL - - 970,000 800,000 (170,000)
TOTAL EXPENDITURES 762,674$ 840,113$ 1,833,580$ 1,788,507$ (45,073)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Fleet Supervisor 1.00 111,342$ 99,745$ 105,505$ 112,996$ 7,491$
Mechanic 1.00 - 59,890 64,971 71,750 6,779
Mechanic, Lead - - - - - -
Mechanic, Senior 2.00 250,998 175,955 181,132 184,687 3,555
Public Works Superintendent - 5,766 - - - -
Warehouse Worker - - - - - -
Overtime 3,000 3,000 1,500 1,500 -
Payout (vacation and sick excess hours)7,712 - 4,700 4,700 -
DEPARTMENT TOTALS 4.00 378,818$ 338,590$ 357,808$ 375,633$ 17,825$
CITY OF VERNON
Budget Summary
2022-2023
84 of 167
DEPARTMENT:
011.1046 CITY GARAGE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
011.1046.499700 Credit for Garage Work Orders -$ -$ 375,000$ 400,000$ 25,000$
TOTAL REVENUES -$ -$ 375,000$ 400,000$ 25,000$
EXPENDITURES:
SALARIES
011.1046.501010 Salaries - Regular 286,069$ 291,600 330,584$ 346,304$ 15,720$
011.1046.501012 Salaries - Premiums 43,587 24,909 25,724 27,829 2,105
011.1046.501020 Salaries - O.T.48 681 1,500 1,500 -
329,704 317,190 357,808 375,633 17,825
BENEFITS
011.1046.502020 Retirement 93,367$ 94,422 116,520$ 147,575$ 31,055$
011.1046.502030 Insurance Premiums - Medical 54,871 65,771 78,664 72,702 (5,962)
011.1046.502060 FICA Taxes 4,682 4,444 5,188 5,447 259
152,919 164,637 200,372 225,724 25,352
SUPPLIES/SERVICES
011.1046.520000 Supplies 197,348$ 233,387 226,500$ 252,200$ 25,700$
011.1046.540000 Uniforms 2,015 2,435 2,000 2,000 -
011.1046.570000 Vehicle Expense 3,862 24,692 6,000 6,000 -
011.1046.590000 Repairs & Maintenance 76,603 97,597 65,400 106,950 41,550
011.1046.596600 Books & Publications - - 500 5,000 4,500
011.1046.596700 Training 223 175 5,000 15,000 10,000
280,051 358,286 305,400 387,150 81,750
CAPITAL
011.1046.850000 Non-Automobile -$ - 970,000$ 800,000$ (170,000)$
- - 970,000 800,000 (170,000)
TOTAL EXPENDITURES 762,674$ 840,113$ 1,833,580$ 1,788,507$ (45,073)$
CITY OF VERNON
Fund 011 Department 1046 - General Fund - City Garage Department
Budget Detail
2022-2023
85 of 167
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Napa Auto Parts Auto parts/supplies 30,000$ 20,000$
2 Lopez & Lopez Tire Service Auto parts/supplies 25,000 20,000
3 Camino Real Chevrolet Auto parts/supplies 10,000 8,000
4 Battery Systems Auto parts/supplies 15,000 17,000
5 Daniels Tire Service Auto parts/supplies 12,000 13,000
6 California Frame & Axle Auto parts/supplies 15,000 20,000
7 Central Ford Auto parts/supplies 20,000 15,000
8 Haaker Equipment Company Auto parts/supplies 10,000 11,000
9 Garvey Equipment Company Auto parts/supplies 10,000 10,000
10 Tire Hub Auto parts/supplies 10,000 20,000
11 Bennett-Bowen Lighthouse Auto parts/supplies 10,000 20,000
12 Dion & Sons, Inc.Auto parts/supplies 4,000 5,000
13 J & H Auto Body Auto parts/supplies 10,000 20,000
14 H & H Wholesale Parts Auto parts/supplies 5,000 7,000
15 McMaster Carr Supply Company Auto parts/supplies 3,000 3,200
16 All Other Suppliers Auto parts/supplies 10,000 11,000
17 Speedo Electric Company Auto parts/supplies 10,000 11,000
18 Warehouse Inventory Consumption Auto parts/supplies 15,000 16,000
19 AFC Hydraulic Seals & Repair Auto parts/supplies 2,500 5,000
20 Factory Motor Parts Yearly Budget 20,000 Auto parts/supplies 20,000 226,500$ 252,200$
21 Oreilly’s Auto Parts Yearly Budget 15,000 Auto parts/supplies 15,000
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 TBD Uniforms 2,000$ 2,000$
2,000$ 2,000$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Garage Work Orders 4,500$ 4,500$
2 City Fuel Pumps Gas Usage 1,250 1,250
3 QMI Washing city vehicles 250 250
6,000$ 6,000$
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1046 - CITY GARAGE
2022-2023
86 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1046 - CITY GARAGE
2022-2023
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 AFC Hydraulic Seals & Repair Repairs and maintenance 3,500$ 10,000$
2 Central Ford Repairs and maintenance 8,000 8,600
3 Diesel Emissions Direct Repairs and maintenance 8,500 9,000
4 Haaker Equipment Company Repairs and maintenance 10,000 10,750
5 Camino Real Chevrolet Repairs and maintenance 7,500 8,000
6 J & H Auto Body Repairs and maintenance 5,400 20,000
7 Morgan Company Repairs and maintenance 1,000 1,000
8 Pacific Commercial Truck Body Repairs and maintenance 3,500 20,000
9 Preferred Aerial & Crane Repairs and maintenance 4,500 4,800
10 RVD Emissions Repairs and maintenance 1,200 1,300
11 Lynn's Auto Air, Inc.Repairs and maintenance 2,300 2,500
12 All Other Suppliers Repairs and maintenance 10,000 11,000
65,400$ 106,950$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 Mitchel 1 Subscription Electronic Book 500$ 5,000$
500$ 5,000$
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 Department Personnel Training Training 5,000$ 15,000$
5,000$ 15,000$
Capital
Detailed FY2022 FY2023
Name Description Budget Budget
1 CNG Retrofit Explosion Proof Lighting, Ventilation, Heating 100,000$ -$
2 Scanner Module Update Module 5,000 -
3 Fuel Pumps and Awning + CNG Replacing 30 year old pumps 750,000 750,000
4 Heaters Garage heater - -
5 Fueling System Gas Boy System 50,000 50,000
6 Garage Doors Door Operators - -
7 Service Truck 2500 Series w/ boxes etc.65,000 -
970,000$ 800,000$
87 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
011.1047 CITY WAREHOUSE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENDITURES:
SALARIES 140,985$ 109,152$ 341,971$ 270,042$ (71,929)$
BENEFITS 72,579 93,401 209,617 177,604 (32,013)
SUPPLIES/SERVICES 184,198 165,322 10,750 13,800 3,050
CAPITAL - - 20,000 24,000 4,000
TOTAL EXPENDITURES 397,763$ 367,875$ 582,338$ 485,446$ (96,892)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Facilities Maintenance Supervisor - 9,945$ 10,243$ 10,551$ -$ (10,551)
Public Works Superintendent - 5,766 - - - -
Warehouse Worker 2.00 - 154,322 158,850 161,959 3,109
Warehouse Worker, Lead 1.00 95,205 98,010 100,899 101,383 484
Warehouse Worker, Senior - 41,236 57,038 64,971 - (64,971)
Overtime 2,500 2,500 2,000 2,000 -
Payout (vacation and sick excess hours)2,838 1,000 4,700 4,700 -
DEPARTMENT TOTALS 3.00 157,490$ 323,113$ 341,971$ 270,042$ (71,929)$
88 of 167
DEPARTMENT:
011.1047 CITY WAREHOUSE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENDITURES:
SALARIES
011.1047.501010 Salaries - Regular 109,447$ 86,700 287,529$ 216,452$ (71,077)$
011.1047.501012 Salaries - Premiums 31,095 22,451 52,442 51,590 (852)
011.1047.501020 Salaries - Overtime 444 - 2,000 2,000 -
140,985 109,152 341,971 270,042 (71,929)
BENEFITS
011.1047.502020 Retirement 40,836$ 68,820 108,539$ 101,629$ (6,910)$
011.1047.502030 Insurance Premiums - Medical 29,921 23,028 96,119 72,059 (24,060)
011.1047.502060 FICA Taxes 1,823 1,553 4,959 3,916 (1,043)
72,579 93,401 209,617 177,604 (32,013)
SUPPLIES/SERVICES
011.1047.520000 Supplies 179,329$ 150,291 2,000$ 4,000$ 2,000$
011.1047.540000 Uniforms 1,076 1,770 1,000 1,000 -
011.1047.570000 Vehicle Expense 3,399 13,262 7,000 7,800 800
011.1047.596600 Books & Publications - - - - -
011.1047.596700 Training 395 - 750 1,000 250
184,198 165,322 10,750 13,800 3,050
CAPITAL
011.1047.850000 Non-Auto -$ - 20,000$ 24,000$ 4,000$
- - 20,000 24,000 4,000
TOTAL EXPENDITURES 397,763$ 367,875$ 582,338$ 485,446$ (96,892)$
CITY OF VERNON
Fund 011 Department 1047 - General Fund - City Warehouse Department
Budget Detail
2022-2023
89 of 167
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Vendors Based On Procurement
Requirement
Supplies 2,000$ 4,000$
2,000$ 4,000$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 TBD Uniforms 1,000$ 1,000$
1,000$ 1,000$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Garage Work Orders 5,400$ 5,400$
2 City Fuel Pumps Gas Usage 1,500 2,000
3 QMI Washing city vehicles 100 400
7,000$ 7,800$
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Department Personnel Training 750$ 1,000$
750$ 1,000$
Capital Expenditures
Detailed FY2022 FY2023
Name Description Budget Budget
1 Delivery Vehicle Equipment -$ 24,000$
2 Barcode Self Service System Equipment 20,000
20,000$ 24,000$
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1047 - CITY WAREHOUSE
2022-2023
90 of 167
DEPARTMENT:
011.1048 CITY HOUSING
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES 265,412 292,558 301,770 301,000 (770)
EXPENSES:
SALARIES 143,111$ 118,476$ 183,243$ 201,612$ 18,369$
BENEFITS 77,112 70,226 103,077 134,614 31,537
SUPPLIES/SERVICES 85,704 162,762 119,900 137,200 17,300
TOTAL EXPENSES 305,927$ 351,464$ 406,220$ 473,426$ 67,206$
CAPITAL 148,429$ -$ 220,000$ 125,000$ (95,000)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Facilities Maintenance Supervisor 0.15 24,862$ 25,608$ 26,376$ 18,448$ (7,928)$
Facilities Maintenance Worker 1.50 98,887 105,045 98,442 102,171 3,729
Facilities Maintenance Worker, Lead 0.50 15,677 16,953 17,460 44,368 26,908
Facilities Maintenance Worker, Senior 0.50 13,666 14,075 39,465 35,125 (4,340)
Public Works Superintendent - 23,065 - - - -
Overtime 1,500 1,500 1,500 1,500 -
DEPARTMENT TOTALS 2.65 177,657$ 163,181$ 183,243$ 201,612$ 18,369$
CITY OF VERNON
Budget Summary
2022-2023
91 of 167
DEPARTMENT:
011.1048 CITY HOUSING
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
011.1048.431000 Rents 264,947$ 292,288 301,000$ 301,000$ -$
011.1048.461100 Fines and Penalties 465 - 500 - (500)
011.1048.466900 Miscellaneous Revenues - 270 270 - (270)
TOTAL REVENUES 265,412$ 292,558$ 301,770$ 301,000$ (770)$
EXPENSES:
SALARIES
011.1048.501010 Salaries - Regular 135,226$ 110,249 176,803$ 195,887$ 19,084$
011.1048.501012 Salaries - Premiums 6,781 7,053 4,940 4,225 (715)
011.1048.501020 Salaries - O.T.1,104 1,174 1,500 1,500 -
143,111 118,476 183,243 201,612 18,369
BENEFITS
011.1048.502020 Retirement 41,656$ 41,757 60,816$ 81,571$ 20,755$
011.1048.502030 Insurance Premiums - Medical 33,647 26,857 39,604 50,120 10,516
011.1048.502060 FICA Taxes 1,809 1,612 2,657 2,923 266
77,112 70,226 103,077 134,614 31,537
SUPPLIES/SERVICES
011.1048.520000 Supplies 16,270$ 43,043 26,750$ 38,750$ 12,000$
011.1048.530015 Real Estate Taxes 10,357 19,201 12,000 12,000 -
011.1048.550000 Advertisement/Promotion 911 - 1,000 1,000 -
011.1048.560000 Utilities 7,889 15,634 11,150 11,150 -
011.1048.570000 Vehicle Expense 9 114 2,400 2,700 300
011.1048.590000 Repair & Maintenance 36,641 78,433 51,000 61,000 10,000
011.1048.596200 Professional Services - Other 13,626 6,337 15,600 10,600 (5,000)
85,704 162,762 119,900 137,200 17,300
TOTAL EXPENSES 305,927$ 351,464$ 406,220$ 473,426$ 67,206$
CAPITAL
011.1048.900000 Capital Outlay 148,429$ - 220,000$ 125,000 (95,000)
TOTAL CAPITAL 148,429 - 220,000 125,000 (95,000)
CITY OF VERNON
Fund 011 Department 1048 - General Fund - City Housing Department
Budget Detail
2022-2023
92 of 167
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Home Depot Credit Services General Supplies 15,000$ 25,000$
2 All Other Suppliers Miscellaneous Supplies 10,000 12,000
3 Current Wholesale Corp General Supplies 750 750
4 Plumbing & Industrial Supply Corp General Supplies 500 500
5 City Warehouse Inventory Consumption 500 500
26,750$ 38,750$
Account No. 530015 - Real Estate Taxes
Detailed FY2022 FY2023
Name Description Budget Budget
1 Los Angeles County Tax Possessory Interest Taxes 12,000$ 12,000$
12,000$ 12,000$
Account No. 550000
Advertisement/Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 Professional Publications Quarterly rental notifications 1,000$ 1,000$
2 Planet Bids Publishings for Municipalities -
1,000$ 1,000$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 Utilities - Internal Fund Utilities 5,500$ 5,500$
2 County Sanitation Districts Sewer Utilities 4,500 4,500
3 The Gas Company Utilities 1,000 1,000
4 Southern California Edison Utilities 150 150
11,150$ 11,150$
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1048 - CITY HOUSING
2022-2023
93 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1048 - CITY HOUSING
2022-2023
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Fuel Pumps Gas Usage 1,200$ 1,500$
2 City Garage Garage Work Orders 1,200 1,200
2,400$ 2,700$
Account No. 590000 - Repairs &
Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 Pest Control Maintenance 5,000$ 5,000$
2 City Warehouse Inventory Consumption 1,000 1,000
3 Various Vendors Per City Procurement
Requirements
Repairs & Maintenance 45,000 55,000
51,000$ 61,000$
Account No. 596200 - Professional
Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Stipends For Commissioners Professional services 2,400$ 2,400$
2 Mariposa Landscaping Landscape Architectural Services 7,000 7,000
3 Haul-Away Rubbish Professional services 1,200 1,200
4 Various Consultants Per City
Procurement Requirements
Building Condition Assessment 5,000
15,600$ 10,600$
Account No. 900000 - Capital
Expenditures
Detailed FY2022 FY2023
Name Description Budget Budget
1 Remodel Remodeling 100,000$ 125,000$
2 Various Consultants Per City
Procurement Requirements
City Housing (Various Improvements)20,000 -
3 TBD Water filtration at 50th street apartments 35,000 -
4 Pickup Truck 3/4 ton extended cab w/ boxes and racks 65,000 -
5 Water Softener Softener for the 50th street apartments - -
220,000$ 125,000$
94 of 167
DEPARTMENT:
011.1049 CITY BUILDINGS
A B B-A
Actuals
2018-19
Actuals
2019-20
Budget
2020-21
Budget
2021-22
Increase/
(Decrease)
REVENUES:241,836$ 250,588$ 250,500$ 250,500$ -$
EXPENSES:
SALARIES 326,177$ 279,341$ 318,057$ 298,904$ (19,153)$
BENEFITS 171,210 155,419 166,496 186,139 19,643
SUPPLIES/SERVICES 1,007,278 1,376,851 940,250 845,700 (94,550)
TOTAL EXPENSES 1,504,666$ 1,811,611$ 1,424,803$ 1,330,743$ (94,060)$
CAPITAL 132,667$ 580,684$ 795,000$ 1,375,000$ 580,000$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Facilities Maintenance Supervisor 0.85 64,642$ 66,581$ 68,578$ 104,540$ 35,962$
Facilities Maintenance Worker 1.50 98,887 105,045 98,442 102,171 3,729
Facilities Maintenance Worker, Lead 0.50 88,839 96,065 98,942 44,368 (54,574)
Facilities Maintenance Worker, Senior 0.50 77,441 79,759 39,465 35,125 (4,340)
Public Works Superintendent - 23,065 - - - -
Warehouse Worker, Senior - 12,371 - - - -
Overtime 15,000 15,000 10,000 10,000 -
Payout (vacation and sick excess hours)2,593 - 630 700 70
Stand-by 33,500 33,500 2,000 2,000 -
DEPARTMENT TOTALS 3.35 416,338$ 395,950$ 318,057$ 298,904$ (19,153)$
CITY OF VERNON
Budget Summary
2022-2023
95 of 167
DEPARTMENT:
011.1049 CITY BUILDINGS
A B B-A
Actuals
2018-19
Actuals
2019-20
Budget
2020-21
Budget
2021-22
Increase/
(Decrease)
REVENUES:
011.1049.431000 Rents 241,836$ 250,588 250,500$ 250,500$ -$
241,836 250,588 250,500 250,500 -
EXPENSES:
SALARIES
011.1049.501010 Salaries - Regular 282,026$ 241,233 282,803$ 267,631$ (15,172)$
011.1049.501012 Salaries - Premiums 42,089 34,710 25,254 21,273 (3,981)
011.1049.501020 Salaries - Overtime 2,063 3,398 10,000 10,000 -
326,177 279,341 318,057 298,904 (19,153)
BENEFITS
011.1049.502020 Retirement 94,482$ 91,149 100,189$ 114,872$ 14,683$
011.1049.502030 Insurance Premiums - Medical 73,451 60,673 61,695 66,933 5,238
011.1049.502060 FICA Taxes 3,277 3,598 4,612 4,334 (278)
171,210 155,419 166,496 186,139 19,643
SUPPLIES/SERVICES
011.1049.520000 Supplies 127,282$ 279,321 135,700$ 146,700$ 11,000$
011.1049.540000 Uniforms 2,941 3,335 1,500 2,000 500
011.1049.560000 Utilities 359,949 382,573 325,000 325,000 -
011.1049.570000 Vehicle Expense 19,183 25,893 19,000 19,500 500
011.1049.590000 Repair & Maintenance 489,466 624,359 435,750 325,000 (110,750)
011.1049.596200 Professional Services - Other 8,458 58,951 20,000 22,500 2,500
011.1049.596600 Books & Publications - - 300 - (300)
011.1049.596700 Training - 2,419 3,000 5,000 2,000
1,007,278 1,376,851 940,250 845,700 (94,550)
TOTAL EXPENSES 1,504,666 1,811,611 1,424,803 1,330,743 (94,060)
CAPITAL
011.1049.900000 Capital Outlays 132,667$ 580,684 795,000$ 1,375,000$ 580,000
132,667 580,684 795,000 1,375,000 580,000
CITY OF VERNON
Fund 011 Department 1049 - General Fund - City Buildings Department
Budget Detail
2022-2023
96 of 167
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Warehouse Inventory Consumption 25,000$ 25,000$
2 All Other Suppliers Supplies 30,000 30,000
3 Quench Supplies 10,000 -
4 Home Depot Supplies 20,000 50,000
5 Plumbing & Industrial Supply Supplies 15,000 15,000
6 Current Wholesale Electric Supplies 15,000 7,500
7 Aaa Electric Motor Sales Supplies 7,000 7,000
8 Refrigeration Supplies Dist.Supplies 3,000 3,000
9 Grainger Co.Supplies 5,000 5,000
10 Ice Machine Sales & Service Co.Supplies 3,000 3,000
11 Orange Coast Petroleum Supplies 1,500 -
12 L.B. Johnson Hard Co.Supplies 1,200 1,200
135,700$ 146,700$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 Specialty Apparel Uniforms 1,500$ 2,000$
1,500$ 2,000$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 VPU Interdepartmental Utilities 312,000$ 312,000$
2 Vernon Gas Company Utilities 13,000 13,000
325,000$ 325,000$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Garage Garage Work Orders 14,500$ 14,500$
2 City Fuel Pumps Gas Usage 4,500 5,000
19,000$ 19,500$
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1049 - CITY BUILDINGS
2022-2023
97 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1049 - CITY BUILDINGS
2022-2023
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 United Services Janitorial services 275,000$ 100,000$
2 Emergency Repairs Repairs and maintenance 50,000 50,000
3 Mariposa Landscaping Grounds maintenance service 40,000 50,000
4 Professional Heating & Air Repairs and maintenance 35,000 50,000
5 All Other Vendors Repairs and maintenance 9,000 10,000
6 Fleming Environmental, Inc.,Repairs and maintenance 10,000 15,000
7 Simplex-Grinnell Repairs and maintenance 6,000 10,000
8 Facilities Protection Systems Repairs and maintenance 4,000 5,000
9 Termin-X Pest control 2,750 3,000
10 Chem Pro Lab Inc.Repairs and maintenance 1,000 1,000
11 Thyssenkrupp Elevator Repairs and maintenance 1,000 5,000
12 Scott Campbell Co.Repairs and maintenance 1,000 25,000
13 Won Door Corporation Repairs and maintenance 1,000 1,000
435,750$ 325,000$
Account No. 596200 - Professional Services
Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 To Be Bid Other professional services as required 8,500$ 10,000$
2 Haul-Away Rubbish Co., Inc.Solid waste hauling 8,000 8,000
3 South Coast A.Q.M.D. Registration & emission fees 2,000 2,500
4 Express Oil Co.Removal of Used Oil, Fuel, Antifreeze & Waste 1,500 2,000
20,000$ 22,500$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 Professional Publications Publications and books 300$
300$ -$
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Department Personnel Training 3,000$ 5,000$
3,000$ 5,000$
98 of 167
CITY OF VERNON
FUND 011 - GENERAL FUND
DEPARTMENT 1049 - CITY BUILDINGS
2022-2023
Account No. 900000 - Capital Outlay
Detailed FY2022 FY2023
Name Description Budget Budget
1 CH 2nd Floor Remodel Finance/City Attorney/ PW/ City Clerk -$ 300,000$
2 Security Fencing First floor of Parking Structure PD Request 300,000
3 PW Confernce Room Furniture Monitors,mics, cameras, table, chairs 50,000
4 PD Break Room Update PD break room 50,000
5 Conference Room 2 Remodel including new furniture 40,000 -
6 Lobby, Hallway - Finanance/City Clerk Remodel including new furniture 50,000 -
7 Public Works Yard Break Room Aircondirin replacement 40,000 -
8 OE Clark/Leonis Building - Project WestSide City Yard Design -
9 OE Clark/Leonis Building - Project WestSide City Yard Construction 300,000
10 Project City Hall Energy Management System 200,000 400,000
11 Project City Hall Plaza Design 75,000 75,000
12 Project City Hall - deck seal/repair parking structure 50,000
13 Recycle Yard Relocation Construction of recycle yard at new location 200,000
14 Equipment - Auto Small Street Sweeper 40,000
795,000$ 1,375,000$
99 of 167
City of Vernon
VPU
Proposed
FY 2022-23 Budget
100 of 167
A B B-A
Account Description
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
ELECTRIC FUND
055.7100.441001 AB1890 Revenues 4,548,461 4,775,125 5,079,455 5,313,638 234,183
055.7100.450010 Sale of Electricity 165,394,154 166,712,957 180,485,582 190,293,580 9,807,998
055.7100.450012 Discount on Sales (3,405,501) (3,725,459) (2,259,076) (3,850,123) (1,591,047)
055.7100.450016 Fuel Cost Adjustment 295,164 2,917,694 5,612,736 8,890,335 3,277,598
055.7100.450017 Fuel Cost Adjustment Credit 148,128 (195,789) - - -
055.7100.450031 RPS Pass-Through 4,402,440 4,281,557 3,360,520 880,452 (2,480,068)
055.7100.450080 Temporary Power 6,690 1,171 - - -
055.7100.450301 Special Charges 122,959 122,959 103,863 103,863 -
055.7100.600910 Other Income 91,321 43,014 221,101 221,101 -
055.7200.450035 Solar Rebate (58,013) - - - -
055.7200.600910 Other Income - - - 128,242 128,242
055.8300.450330 Damaged Property 28,406 76,620 200,000 250,000 50,000
055.8300.461900 District Service Charge or Miscellaneous 366,516 451,789 - 100,000 100,000
055.9000.466900 Miscellaneous Revenues 99,259 215 - - -
055.9000.600910 Other Income - - - - -
055.9100.450121 Construction Revenue - - 900,000 - (900,000)
055.9100.464000 Joint Pole Revenue 21,602 118,093 200,000 250,000 50,000
055.9200.450011 Sale of Electricity - Wholesale - 6,135,500 3,191,380 2,262,324 (929,057)
055.9200.450022 Transportation Charges - Retail 727,128 1,022,471 658,800 1,145,823 487,023
055.9200.450025 Biomethane Gas - 1,696,473 100,000 - (100,000)
055.9200.450026 Natural Gas Sales - COV Retail 7,225,763 9,621,617 7,375,755 11,819,152 4,443,397
055.9200.450028 Natural Gas Sales - Prepaid/SMUD Wholesa 7,015,695 7,888,232 - - -
055.9200.450030 ARB Freely Allocated Allowance Sales 6,177,191 6,475,158 6,898,163 8,596,823 1,698,660
055.9200.450340 Transmission Revenue (TRR & FTR)2,986,532 2,773,285 1,948,612 3,648,126 1,699,514
TOTAL CHARGES FOR SERVICES 196,193,897 211,192,683 214,076,891 230,053,335 15,976,444
055.9000.610110 Investment Income 918,236 57,190 300,000 20,000 (280,000)
055.9000.610170 Unrealized (Gain)Loss on Investments 2,036 (3,033) - - -
055.9000.690100 Operating Transfers In - - 222,978 222,978 -
055.9100.600105 Proceeds From Long-Term Debt - - 13,935,937 5,050,500 (8,885,437)
TOTAL NON-OPERATING REVENUES 920,273 54,157 14,458,915 5,293,478 (9,165,437)
TOTAL ELECTRIC FUND REVENUES 197,114,170 211,246,840 228,535,806 235,346,813 6,811,007
GAS FUND
056.5600.450020 Natural Gas Sales - (197) - - -
056.5600.450022 Transportation Charges - Retail 2,755,545 2,830,999 2,826,829 2,807,266 (19,564)
056.5600.450024 Commodity Administrative Fee - - 63,600 64,232 632
056.5600.450026 Natural Gas Sales - COV Retail 7,474,412 8,993,507 7,049,575 11,819,152 4,769,577
056.5600.450028 Natural Gas Sales - Prepaid/SMUD Wholesa 1,289,722 1,175,323 - - -
056.5600.450101 Monthly Customer Charge 95,423 94,418 82,000 95,128 13,128
056.5600.450105 Customer Connection Charge - - 300,000 - (300,000)
056.5610.450030 ARB Freely Allocated Allowance Sales 795,594 928,127 999,894 1,368,922 369,028
056.5610.450032 CA Greenhouse Gas Surcharge 1,848,598 2,131,841 2,151,686 2,998,039 846,353
056.5610.450034 ARB Cap and Trade Emissions Sales - - - - -
TOTAL CHARGES FOR SERVICES 14,259,295 16,154,018 13,473,584 19,152,739 5,679,155
056.5600.600910 Other Income 1,402 122 - - -
056.5600.610110 Investment Income 53,144 5,334 - - -
TOTAL NON-OPERATING REVENUES 54,546 5,456 - - -
TOTAL GAS FUND REVENUES 14,313,841 16,159,474 13,473,584 19,152,739 5,679,155
CITY OF VERNON
Enterprise Funds Revenues
FY 2022-23
101 of 167
A B B-A
Account Description
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
CITY OF VERNON
Enterprise Funds Revenues
FY 2022-23
WATER FUND
020.1084.431000 Rents - - - - -
020.1084.450040 Water Sales 9,445,987 10,033,974 10,217,500 10,090,000 (127,500)
020.1084.450045 Water - Recycled - 563,908 591,000 598,000 7,000
020.1084.450110 Fire Service 29,832 6,827 75,000 5,000 (70,000)
020.1084.450121 Construction Revenue 453,722 128,900 358,000 350,000 (8,000)
020.1084.450122 Installation Charge 1,800 2,500 1,900 2,000 100
020.1084.450330 Damaged Property 1,400 5,585 2,900 5,000 2,100
020.1085.450045 Water - Recycled 527,726 - - - -
TOTAL CHARGES FOR SERVICES 10,460,467 10,741,694 11,246,300 11,050,000 (196,300)
020.1084.600105 Proceeds From Long-Term Debt - - 8,660,259 6,600,000 (2,060,259)
020.1084.610110 Investment Income 41,717 6,660 10,000 5,000 (5,000)
TOTAL NON-OPERATING REVENUES 41,717 6,660 8,670,259 6,605,000 (2,065,259)
TOTAL WATER FUND REVENUES 10,502,184 10,748,354 19,916,559 17,655,000 (2,261,559)
FIBER OPTICS FUND
057.1057.450050 Internet Access Services 404,269 274,486 280,000 275,000 (5,000)
057.1057.450051 Dark Fiber Revenue 92,032 102,238 90,000 105,000 15,000
057.1057.450060 Internet Access Services - Gov't Rate 24,600 24,600 20,000 24,600 4,600
057.1057.450061 Dark Fiber Revenue - Gov't Rate 79,920 73,126 70,000 173,800 103,800
057.1057.466900 Miscellaneous Revenues - 6,456 - - -
TOTAL CHARGES FOR SERVICES 600,821 480,906 460,000 578,400 118,400
057.1057.610110 Investment Income 3,430 422 - - -
TOTAL NON-OPERATING REVENUES 3,430 422 - - -
TOTAL FIBER OPTICS FUND REVENUES 604,251 481,329 460,000 578,400 118,400
GRAND TOTAL 222,534,445 238,635,996 262,385,950 272,732,952 10,347,002
102 of 167
DEPARTMENT SALARIES BENEFITS
SUPPLIES/
SERVICES
CAPITAL
OUTLAY TOTAL
LIGHT & POWER
FIELD OPERATIONS 394,001 178,107 1,709,200 1,124,000 3,405,308
SYSTEM DISPATCH 1,780,854 780,778 1,225,500 270,000 4,057,132
STATION A - - 1,137,500 50,000 1,187,500
TRANS/DISTRIBUTION - - 7,809,505 - 7,809,505
BUILDING MAINTENANCE 66,066 52,514 411,000 125,000 654,580
CUSTOMER SERVICE 671,300 333,309 521,800 200,000 1,726,409
ADMINISTRATION 1,305,309 685,960 83,730,968 55,000 85,777,237
ELECTRICAL ENGINEERING 1,158,264 536,981 305,500 9,361,700 11,362,445
MALBURG GENERATING STATION 2,950,635 1,617,998 11,889,833 559,065 17,017,531
RESOURCE MANAGEMENT 986,377 476,319 119,098,405 - 120,561,101
ENERGY MANAGEMENT 213,272 116,485 1,905,000 - 2,234,757
TOTAL L & P 9,526,078 4,778,451 229,744,211 11,744,765 255,793,506
GAS 774,588 361,880 18,902,973 615,000 20,654,441
WATER FUND
WATER OPERATIONS 1,495,736 848,411 7,732,675 8,584,315 18,661,137
TOTAL WATER 1,495,736 848,411 7,732,675 8,584,315 18,661,137
FIBER-OPTICS 10,146 6,718 401,500 175,000 593,364
TOTAL UTILITIES 11,806,548 5,995,460 256,781,359 21,119,080 295,702,448
CITY OF VERNON
EXPENDITURE BUDGET
FY 2022-23
103 of 167
Dept Project Name FY 22-23 Budget
LIGHT & POWER
FIELD OPERATIONS Time of Use & Standard Revenue Meter Upgade 2G to 4G 250,000
FIELD OPERATIONS Spare Substation Equipment/Circuit Breakers 640,000
FIELD OPERATIONS Spare Capacitors and fuses - Experienced capacitor issues due to failure and avian interruptions 25,000
FIELD OPERATIONS Metering Auxilliary Components (CT, PT, Meters not included in 9 year plan)25,000
FIELD OPERATIONS Substation Yard Replacement Lights - Safety issues and weather breaking down fasteners 25,000
FIELD OPERATIONS Substation grounding improvements & rock replacement for Leonis Substation Road Upgrade 50,000
FIELD OPERATIONS AED 9,000
FIELD OPERATIONS Replace deteriorating chain link fence Soto Yard South, Leonis Sub North and South plus entry gate, Ybarra Sub 100,000
SYSTEM DISPATCH Electric Operator Vehicle Crew Truck 80,000
SYSTEM DISPATCH Control Center Console Assessment, Design and Plan 50,000
SYSTEM DISPATCH Pre-frabricated Guard House (2)80,000
SYSTEM DISPATCH Pre-frabricated Toilet Trailer 60,000
STATION A Turbines Replacement Parts 50,000
BUILDING MTCE Engine Room Air Banks & Associated Piping 50,000
BUILDING MTCE Install Bollard System to protect VS LS Sub from TC & Sabotage 25,000
BUILDING MTCE Elevator Major overhall or replacement 50,000
CUTOMER SERVICE New billing system - Non Munis TOU 200,000
ADMINISTRATION Meteorological Studies 5,000
ADMINISTRATION Kern County Wind Farm Property 50,000
ELECTRICAL ENGINEERING Vernon Substation Improvements, Aux 6&7 Replacement, UPS 1 & 2 585,000
ELECTRICAL ENGINEERING Vernon Substation Relay replacement and Arc Flash Improvements 196,000
ELECTRICAL ENGINEERING 7 to 16 KV Voltage Conversion 425,000
ELECTRICAL ENGINEERING New electric system extensions, new customer connections, and System Reliability Projects 850,000
ELECTRICAL ENGINEERING Department portion of 16 KV Consumer Substation Upgrades/R.P.E.50,000
ELECTRICAL ENGINEERING Distribution Capacitor Banks and Controls/Smart Grid/Reclosers 246,000
ELECTRICAL ENGINEERING Underground Distribution Switch Replacement 200,000
ELECTRICAL ENGINEERING SCADA and Communications System Network Management 425,000
ELECTRICAL ENGINEERING Dist. System Improvements related to Frontage Improvements 550,000
ELECTRICAL ENGINEERING Street Lighting - HPS Conversion to L.E.D, and System Undergrounding 190,000
ELECTRICAL ENGINEERING Equipment purchases (transformers, switches)1,050,000
ELECTRICAL ENGINEERING Leonis Substation Relay replacement and improvements 2,500
ELECTRICAL ENGINEERING Leonis Substation Augmentation of 66 KV Relays 75,000
ELECTRICAL ENGINEERING Vernon Substation and Ybarra Substation Digital Fault Recorders 206,000
ELECTRICAL ENGINEERING Dumont 16kV Circuit - Seville OH 367,500
ELECTRICAL ENGINEERING Dumont 16kV Circuit -50th/ Downey / Leonis Electrical 284,700
ELECTRICAL ENGINEERING Dumont 16kV Circuit -Leonis UG Civil 23,500
ELECTRICAL ENGINEERING Dumont 16kV Circuit -Leonis OH 710,500
ELECTRICAL ENGINEERING HCB Project with SCE 500,000
ELECTRICAL ENGINEERING Consultant Services 100,000
ELECTRICAL ENGINEERING 7 to 16kV Conversion Section 2 425,000
ELECTRICAL ENGINEERING System Undergrounding 400,000
ELECTRICAL ENGINEERING Deteriorated Wood Pole Replacement 1,500,000
MALBURG GENERATING STATION Improve air quality to ABB Generators, prolonging unit life 195,000
MALBURG GENERATING STATION Install and Tune AGC Capability for CAISO 110,000
MALBURG GENERATING STATION Pair of ACS880 Starting Motor Drives (Must be replaced in pairs), critical spare 80,065
MALBURG GENERATING STATION Other critical spares for ACS880 Drive Modules 18,000
MALBURG GENERATING STATION Critical LP Feedpump Spares, recently consumed 15,000
MALBURG GENERATING STATION Generator spares for rotor pull 40,000
MALBURG GENERATING STATION Pre-frabricated Toilet Trailer 60,000
MALBURG GENERATING STATION EV Vehicle 41,000
11,744,765
Funded by bond proceeds 5,050,500 *
Funded by fund balance 6,694,265
Total 11,744,765
GAS Customer Connection Costs (Assumes 10 customers costing $24,000 each to connect) 300,000
GAS Crew Cab Full Size Construction Truck 125,000
GAS Construction Air Compressor 35,000
GAS Construction Back Hoe with Street Profiler 130,000
GAS Customer meter set bollards (new customers)10,000
GAS Minimax Metering Instruments 15,000
615,000
CITY OF VERNON
Enterprise Funds Capital Outlay Details
FY 2022-23
104 of 167
Dept Project Name FY 22-23 Budget
CITY OF VERNON
Enterprise Funds Capital Outlay Details
FY 2022-23
WATER Vehicle 185,000 *
WATER Emergency Generators (Wells 11&PP1, 20, and W21)900,000 *
WATER Well 5 Destruction 43,000
WATER Well 22 Wellhead Equipment 2,863,175 *
WATER Emergency Generator on Well 22 300,000 *
WATER Elevated Tank Upgrades (automation)16,250
WATER Reservoir/PH Demolition at Well 20 450,000
WATER Systemwide Soil Corrosivity Assessment 150,000
WATER Major Booster Maintenance (B1-2, 3-1, 3-4)150,000
WATER Design & Construction Repairs for Reservoirs at PP2 2,336,625 *
WATER AMI Program 100,000
WATER Electrical Upgrades 573,860
WATER SCADA 506,405
WATER AMR Meter Modules 10,000
8,584,315
Funded by bond proceeds 6,600,000
Funded by fund balance 1,984,315
Total 8,584,315
FIBER-OPTICS Internet Service Provider System Enhancement and Construction 175,000
105 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.8000 FIELD OPERATIONS
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES 629,594$ 657,812$ 541,365$ 394,001$ (147,364)$
BENEFITS 232,849 249,710 200,649 178,107 (22,542)
SUPPLIES/SERVICES 923,847 827,005 1,313,500 1,709,200 395,700
TOTAL EXPENSES 1,786,290$ 1,734,527$ 2,055,514$ 2,281,308$ 225,794$
CAPITAL -$ -$ 310,000$ 1,124,000$ 814,000$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Electric Operations Supervisor 0.95 160,018$ 166,434$ 171,428$ 174,855$ 3,427$
Electrical Test Technician, Lead 1.00 - - - 167,146 167,146
Electrical Test Technician, Senior - 132,177 137,469 141,587 - (141,587)
Metering Technician - 121,407 126,207 32,061 - (32,061)
Metering Technician, Senior - 151,031 157,079 121,389 - (121,389)
Overtime 31,200 31,200 5,000 5,000 -
Payout (vacation and sick excess hours)35,200 23,855 36,900 14,000 (22,900)
Utilities System Operation Premium (USOP)1,000 1,000 1,000 1,000 -
Stand-by 60,000 60,000 32,000 32,000 -
DEPARTMENT TOTALS 1.95 692,033$ 703,244$ 541,365$ 394,001$ (147,364)$
106 of 167
CITY OF VERNON
Fund 055 Department 8000 - Light & Power Fund - Field Operations Department
Budget Detail
2021-2022
DEPARTMENT:
055.8000 FIELD OPERATIONS
B B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
SALARIES
055.8000.501010 Salaries - Regular 523,180$ 539,350 429,444$ 325,525$ (103,919)$
055.8000.501012 Salaries - Premiums 102,817 115,343 106,921 63,476 (43,445)
055.8000.501020 Salaries - O.T.3,597 3,120 5,000 5,000 -
TOTAL SALARIES 629,594 657,812 541,365 394,001 (147,364)
BENEFITS
055.8000.502020 Retirement 151,464$ 165,429 131,216$ 132,209$ 993$
055.8000.502030 Insurance Premiums - Medical 72,413 74,942 61,583 40,185 (21,398)
055.8000.502060 FICA Taxes 8,972 9,339 7,850 5,713 (2,137)
TOTAL BENEFITS 232,849 249,710 200,649 178,107 (22,542)
SUPPLIES/SERVICES
055.8000.520000 Supplies 6,643$ 8,602 6,500$ 6,500$ -$
055.8000.540000 Uniforms 3,045 4,870 9,000 16,500 7,500
055.8000.560000 Utilities 52,722 52,722 53,000 78,700 25,700
055.8000.560010 Utilities - IT 17,768 15,111 20,000 20,000 -
055.8000.570000 Vehicle Expense 9,684 14,663 20,000 25,000 5,000
055.8000.590000 Repair & Maintenance 829,626 727,641 1,025,000 1,315,000 290,000
055.8000.590110 Repair & Maintenance IT - - 20,000 22,500 2,500
055.8000.595200 Professional Services - Other 1,381 - - - -
055.8000.596200 Professional Services - Other - 427 100,000 165,000 65,000
055.8000.596500 Travel 1,072 - - - -
055.8000.596700 Training 1,907 2,970 60,000 60,000 -
TOTAL SUPPLIES/SERVICES 923,847 827,005 1,313,500 1,709,200 395,700
TOTAL EXPENDITURES 1,786,290$ 1,734,527 2,055,514$ 2,281,308$ 225,794$
CAPITAL
055.8000.900000 Capital Outlays -$ - 310,000$ 1,124,000$ 814,000$
TOTAL CAPITAL -$ -$ 310,000$ 1,124,000$ 814,000$
107 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 8000 - FIELD OPERATIONS
SUPPLIES & SERVICES
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Warehouse Supplies Janitorial Supplies - floor wax, coffee, napkins, toilet paper, soap, ect.1,500$ 1,500$
2 Staples, Office Depot Misc. department and office supplies (training binders, dividers, writing utensils, notepads, etc..)5,000 5,000
6,500$ 6,500$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 Metering Group - Employee Uniforms - To be bid Flame Restistant Protective Gear, Safety Boots Standard Issue / Contractor 5,000$ 5,000$
2 Substation Group - Employee Uniforms - To be bid Flame Restistant Protective Gear, Safety Boots Standard Issue / Contractor 2,500 10,000
3
Electric Ops Supervisor - Employee Uniforms - To be bid
(Increase per person to comply with Eng Arc Flash Hazard Potential Study)
Flame Restistant Protective Gear, Safety Boots Standard Issue / Contractor 1,500 1,500
9,000$ 16,500$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 Trilliant Time of Use (TOU) meter connection charges. (Increase with 9 year meter replacement)26,500$ 26,500$
2 Interdepartmental Billing Fiber Optics 26,500 52,200
53,000$ 78,700$
Account No. 560000 - Utilities IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Verizon Wireless Telecommunication Charges (AMR metering increase)20,000$ 20,000$
20,000$ 20,000$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Garage Substation, Metering & Supervisory Vehicle Maintenance, Fuel & Equipment 20,000$ 25,000$
20,000$ 25,000$
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1
Technical calibration, technical analysis,
certification and safety gear suppliers
Substation and Metering equipment calibration, certification and analysis including TTR,
DGA, High Voltage PPE 35,000$ 35,000$
2 Technical Safety Vendors Safety Items Replacement and Repair, High Voltage Certification 25,000 25,000
3 Competitive Bid Substation & Metering Materials/Equipment Vendors Replacement/Contingency Substation/Metering Maintenance Parts 125,000 125,000
4 Competitive Bid Test Equipment Vendors Substation Test Equipment Purchase or Rental 25,000 25,000
5 Competitive Bid Metering Equipment Vendors Replacement/Contigency Metering Maintenance Parts 25,000 25,000
6 Weidmann Dissolved Gas Analysis (DGA) and oil quality test for 30 transformers 40,000 40,000
7 Substation Recurring Repair, Testing and Maintenance Recurring Maintenance Activities/Relay Testing per GO 174 and Recommended Intervals 720,000 960,000
8 Clean Harbor. Ocean Blue and Patriot Enviornmental Services Environmental/Hazardous Material Spill Clean up 30,000 80,000
1,025,000$ 1,315,000$
Account No. 590010 - Repairs & Maintenance IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Applied Metering Yearly Rig Certification 5,000$ 5,000$
2 Vendor Support Substation/Metering Systems Support 15,000 15,000
3 Stancill Stancil Recording Maintenance - 2,500
20,000$ 22,500$
Account No. 596200 - Professional Services Other
Event FY2022 FY2023
Type Name Budget Budget
1 To Be Bid Substation Tap Changer Testing and Upgrades 95,000$ 95,000$
2 TBD Smart Meter Consulting - 50,000
3 ESCI OSHA safety consultant / ARC Flash assement update 5,000 20,000
100,000$ 165,000$
Account No. 596700 - Training
Event FY2022 FY2023
Type Name Budget Budget
1 Sweitzer Engineering Laboratory, Infrared Certification Substation Technicians 5,000$ 20,000$
2 EUSERC, Distributed Generation & Solar, AMI, DER Metering Technicians 45,000 30,000
3 Hazwoper, OSHA Safety, Utilities Operations Trainee Development Electric Operations Supervisor & Staff 10,000 10,000
60,000$ 60,000$
108 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.8100 SYSTEM DISPATCH
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES 1,660,779$ 1,694,294$ 2,015,643$ 1,780,854$ (234,789)$
BENEFITS 612,157 627,642 811,265 780,778 (30,487)
SUPPLIES/SERVICES 758,765 1,013,201 963,500 1,225,500 262,000
TOTAL EXPENSES 3,031,701$ 3,335,137$ 3,790,408$ 3,787,132$ (3,276)$
CAPITAL -$ -$ 60,000$ 270,000$ 210,000$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Control Room Dispatcher - -$ -$ -$ 7,571$ 7,571$
Electric Operations Supervisor - 123,679 - 147,523 - (147,523)
Electric Operator (5)4.70 557,282 450,124 468,675 580,175 111,500
Utilities Dispatcher (4)3.40 610,015 651,537 675,935 552,939 (122,996)
Utilities Dispatcher, Senior 0.85 - 106,001 145,917 142,074 (3,843)
Utilities Operations Manager - 143,174 156,360 - - -
Utilities Operations Trainee (2)2.00 69,990 149,833 242,693 163,095 (79,598)
Overtime 250,000 250,000 200,000 200,000 -
Payout (vacation and sick excess hours)38,100 27,828 45,900 46,000 100
Utilities System Operation Premium (USOP 5% Pay)1,000 1,000 1,000 1,000 -
Stand-by 95,500 115,000 88,000 88,000 -
DEPARTMENT TOTALS 10.95 1,888,740$ 1,907,683$ 2,015,643$ 1,780,854$ (234,789)$
109 of 167
CITY OF VERNON
Fund 055 Department 8100 - Light & Power Fund - System Dispatch Department
Budget Detail
2022-2023
DEPARTMENT:
055.8100 SYSTEM DISPATCH
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
SALARIES
055.8100.501010 Salaries - Regular 1,243,502$ 1,229,424 1,612,225$ 1,387,075$ (225,150)$
055.8100.501012 Salaries - Premiums 209,271 225,563 203,418 193,779 (9,639)
055.8100.501020 Salaries - O.T.208,006 239,307 200,000 200,000 -
TOTAL SALARIES 1,660,779 1,694,294 2,015,643 1,780,854 (234,789)
BENEFITS
055.8100.502020 Retirement 400,225$ 422,986 549,386$ 566,796$ 17,410$
055.8100.502030 Insurance Premiums - Medical 188,875 180,335 232,652 188,160 (44,492)
055.8100.502060 FICA Taxes 23,057 24,322 29,227 25,822 (3,405)
TOTAL BENEFITS 612,157 627,642 811,265 780,778 (30,487)
SUPPLIES/SERVICES
055.8100.520000 Supplies 1,439$ 6,662 15,000$ 15,000$ -$
055.8100.520010 Supplies - IT - - 10,000 20,000 10,000
055.8100.540000 Uniforms 14,046 18,548 16,000 18,000 2,000
055.8100.560000 Utilities - - 5,000 5,000 -
055.8100.560010 Utilities - IT 369 1,708 - - -
055.8100.570000 Vehicle Expense 37,393 54,168 50,000 50,000 -
055.8100.590000 Repairs & Maintenance 3,799 4,634 - - -
055.8100.590020 Station Maintenance 2,235 360 20,500 20,500 -
055.8100.590110 Repairs & Maintenance IT - - 2,000 2,000 -
055.8100.596200 Professional Services - Other 694,566 922,888 770,000 1,020,000 250,000
055.8100.596500 Travel 1,109 - - - -
055.8100.596700 Training 3,810 4,233 75,000 75,000 -
TOTAL SUPPLIES/SERVICES 758,765 1,013,201 963,500 1,225,500 262,000
TOTAL EXPENDITURES 3,031,701$ 3,335,137$ 3,790,408$ 3,787,132$ (3,276)$
CAPITAL
055.8100.900000 Capital Outlays -$ - 60,000$ 270,000$ 210,000$
TOTAL CAPITAL -$ -$ 60,000$ 270,000$ 210,000$
110 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 8100 - SYSTEM DISPATCH
SUPPLIES & SERVICES
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Staples, Office Max Misc. department and office supplies (training binders, dividers, writing utensils, notepads, pocket, calculators,
electrical tags, PUD forms, time stamps and other miscellaneous items of this nature.5,000$ 5,000$
2 City Warehouse, Home Depot Janitorial Supplies - floor wax, coffee, napkins, toilet paper, soap, etc..5,000 5,000
3
LB Johnson, City Warehouse,
McMaster Carr Control Room Supplies used 24 hrs. per day 365 days per year 5,000 5,000
15,000$ 15,000$
Account No. 520010 - Supplies IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Electronics and Equipment Miscellaneous computer items (Fry's Electric) Connectors; cables; electrical components Turbines; Scada cards;
Scada RTU connectors; PLC connectors; batteries; low voltage wire; low voltage adaptors; laptop batteries for field
pc; radio components for electrical radio system; monitors; turbine crt's; specialized ink or printers for turbines
and Scada; security camera accessories.10,000$ 10,000$
2 TBD Electronic Handheld Rounds -$ 10,000$
10,000$ 20,000$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 Competitive Bid uniform suppliers Flame Resistant Uniforms, VPU Standard Issue, PPE 13,000$ 15,000$
2 IBEW & Shoeteria Safety Toe Boot
Additional personnel including Utilities Dispatcher, Electric Operator and Electric Operations Supervisor 3,000 3,000
16,000$ 18,000$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Description Budget Budget
1 AT&T, Sprint, Verizon Control Center Communication Services 5,000$ 5,000$
5,000$ 5,000$
Account No. 570000 - Vehicle Expenses
Detailed FY2022 FY2023
Vehicle Description Budget Budget
1 Electric Operations Fleet Service, Parts, Equipment & Fuel 50,000$ 50,000$
Safety equipment, reassignment and new branding 50,000$ 50,000$
Account No. 590110 - Repairs & Maintenance IT
Detailed FY2022 FY2023
Description Budget Budget
1 Stancil Solutions Stancil Recording Maintenance 2,000$ 2,000$
2,000$ 2,000$
Account No. 590020 - Station Maintenance
Detailed FY2022 FY2023
Description Budget Budget
1 Home Depot, Auto Supply Dealers Replacement tools and supplies for standby truck, flashlight, safety equipment, gloves 15,000$ 15,000$
2 Equipment Manufacturers, Eagle Maintenance, Certification and Calibration of equipment 5,500 5,500
20,500$ 20,500$
111 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 8100 - SYSTEM DISPATCH
SUPPLIES & SERVICES
2022-2023
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 JRM / RFP Professional Security Services (Increased service level due to COVID-19, Vandalism & CIP project protection)750,000$ 1,000,000$
2 TBD Restroom Rental for Station A, Soto Yard Security Guards 20,000 20,000
770,000$ 1,020,000$
Account No. 596700 - Training
Event FY2022 FY2023
Type Name Budget Budget
1 TEEX, Anders, H20Know, APPA, EUCI,
SCPPA, COV, OSHA, ESCI, Northwest
Technical, Operational & Safety Training SCADA Simulator Software, Computer Hardware &
Associate Engineering & Networking & Training Facility
for high voltage electric staff. Including logistics involved with rotating shift coverage and staffing 75,000$ 75,000$
75,000$ 75,000$
112 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.8200 GENERATION STATION A
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SUPPLIES/SERVICES 138,674 146,991 1,087,500 1,137,500 50,000
TOTAL EXPENSES 138,674$ 146,991$ 1,087,500$ 1,137,500$ 50,000$
CAPITAL -$ -$ 50,000$ 50,000$ -$
113 of 167
CITY OF VERNON
Fund 055 Department 8200 - Light & Power Fund - Generation Station A Department
Budget Detail
2022-2023
DEPARTMENT:
055.8200 GENERATION STATION A
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
SUPPLIES/SERVICES
055.8200.500230 Generation Expense 14,138$ 971 92,000$ 92,000$ -$
055.8200.520000 Supplies 4,335 12,077 500 500 -
055.8200.540000 Uniforms - - - - -
055.8200.560010 Utilities IT 26,662 24,439 20,000 20,000 -
055.8200.570000 Vehicle Expense 696 1,203 - - -
055.8200.590000 Repairs & Maintenance 41,667 66,749 150,000 150,000 -
055.8200.596200 Professional Services - Other 51,176 41,553 825,000 875,000 50,000
TOTAL SUPPLIES/SEVICES 138,674 146,991 1,087,500 1,137,500 50,000
TOTAL EXPENDITURES 138,674$ 146,991$ 1,087,500$ 1,137,500$ 50,000$
CAPITAL
055.8200.900000 Capital Outlays -$ - 50,000$ 50,000$ -$
TOTAL CAPITAL -$ -$ 50,000$ 50,000$ -$
114 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 8200 - GENERATION STATION A
SUPPLIES & SERVICES
2022-2023
Account No. 500230 - Generation Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 AQMD AQMD PERMITS & FEES 15,000$ 15,000$
2 Regulatory Environmental Compliance PERMIT & FEES 10,000 10,000
3 Jacobs Environmental Reporting, Compliance, Consulting 53,000 53,000
4 CARB California Air Resources Board for managing AB32 programs. 10,000 10,000
5 LAC Sanitation Waste Water Charge Station A 4,000 4,000
92,000$ 92,000$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Office Depot, staples, etc.Misc. department and office supplies (printer paper binders, dividers, writing utensils 500$ 500$
500$ 500$
Account No. 560010 - Utilities IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Verizon Wireless Utility Meters (Trilliant Lines)20,000$ 20,000$
20,000$ 20,000$
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 TBD Station Repairs (Aux Equipment)100,000$ 100,000$
2 Turbine Repairs Natural Gas Turbine Repairs and Ongoing Maintenance Items 50,000 50,000
150,000$ 150,000$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Northwest Turbine Maintenance, Controls & Automation Work 50,000$ 50,000$
2 To Be Bid Service Contract Mechanical (HGonzales) & Blackstart - 50,000
3 To Be Bid Generation On-call Consulting and Repair Contract 150,000 150,000
4 Calibration/metering Services (HGonzales Gas Skid Meter)5,000 5,000
5 Blanket Air Conditioning Services HGonzales Air Conditioner Service Contract 5,000 5,000
6 TBD (Redhawk) Blanket Fire Suppression HGonzales Fire System Service Contract 10,000 10,000
7 Black Start Project Black Start Test Load Bank & Other Services & Equipment 100,000 100,000
8 Northwest Contracted Project Station A Diesel Project 505,000 505,000
825,000$ 875,000$
115 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.8300 ELECTRICAL TRANSMISSION & DISTRIBUTION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 394,923$ 528,409$ 200,000$ 350,000$ 150,000$
EXPENSES:
SUPPLIES/SERVICES 7,690,273$ 6,826,329$ 6,919,504$ 7,809,505$ 890,001$
TOTAL EXPENSES 7,690,273$ 6,826,329$ 6,919,504$ 7,809,505$ 890,001$
116 of 167
CITY OF VERNON
Fund 055 Department 8300 - Light & Power Fund - Electrical Transmission & Distribution Department
Budget Detail
2022-2023
DEPARTMENT:
055.8300 ELECTRICAL TRANSMISSION & DISTRIBUTION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
055.8300.450330 Damaged Property 28,406$ 76,620 200,000$ 250,000$ 50,000$
055.8300.461900 District Service Change or Miscellaneous 366,516 451,789 - 100,000 100,000
TOTAL REVENUES 394,923$ 528,409.2 200,000 350,000 150,000.0
SUPPLIES/SERVICES
055.8300.520000 Supplies 19,809$ 35 20,500$ 20,500$ -$
055.8300.560000 Utilities 8,202 9,413 9,000 9,000 -
055.8300.570000 Vehicle Expense 54,333 54,763 60,000 60,000 -
055.8300.590000 Repair & Maintenance 7,602,852 6,753,940 6,810,004 7,700,005 890,001
055.8300.596200 Professional Services - Other 5,078 8,178 20,000 20,000 -
TOTAL SUPPLIES/SERVICES 7,690,273 6,826,329 6,919,504 7,809,505 890,001
TOTAL EXPENDITURES 7,690,273$ 6,826,329$ 6,919,504$ 7,809,505$ 890,001$
117 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 8300 - ELECTRICALTRANSMISSION & DISTRIBUTION
SUPPLIES & SERVICES
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1
Quill, Staples, Arrowhead,
Burlington, Orkin, CDW City Yard daily supplies and services 10,500$ 10,500$
2 DigAlert, Tablet, Platform Underground Service Alert 10,000 10,000
20,500$ 20,500$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 AT&T Phone service for Petrelli Building Fax for Dig Alert Service 9,000.00$ 9,000.00$
9,000.00$ 9,000.00$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Yard, Fueling Stations Vehicle Fuel 60,000.00$ 60,000.00$
60,000.00$ 60,000.00$
Account No. 590000 - Repair & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 Petrelli Maintenance and repairs for various field equipment (2 Troubleman crews) 745,556$ 844,445$
2 Petrelli ON/OFF Orders, repairs for service drops, customer panels, field equipment for electric service 745,556 844,445$
3 Petrelli Maintenance mechanic for leased truck service 745,556 844,445$
4 Petrelli Inspections: GO 095 and 128 inspection. Underground vaults and customer facilities 745,556 844,445$
5 Petrelli Yearly labor for Warehouse, restocking, equipment outlay, and Eden Support 745,556 844,445$
6 Petrelli Yearly On call hours for Petrelli crews (Stand-by pay) for emergency call outs.745,556 844,445$
7 Petrelli General Manager, Foreman, admin support teams for various projects and supervision 745,556 844,445$
8 Petrelli
(2) Secretary for yearly support for billing, purchasing, invoicing, and work order management
745,556 844,445$
9 Petrelli General crew for repairs to facilities, substation equipment, offices and General services 745,556 844,445$
10 Lifecom Lifecom: Service and calibration for test set, boot meter infer red scope and misc. equip.50,000 50,000
11 Weidmann Weidmann Electrical technology: Transformer repairs to small KVA transformers. 50,000 50,000
6,810,004$ 7,700,005$
Account No. 596200 - Professional Services - Others
Detailed FY2022 FY2023
Name Description Budget Budget
1 Environmental Disposal Oil & Hazardous waste removal 20,000$ 20,000$
20,000$ 20,000$
118 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.8400 BUILDING MAINTENANCE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES -$ 28,692$ 61,887$ 66,066$ 4,179$
BENEFITS - 22,357 38,868 52,514 13,646
SUPPLIES/SERVICES 93,708 159,621 306,000 411,000 105,000
TOTAL EXPENSES 93,708$ 210,670$ 406,755$ 529,580$ 122,825$
CAPITAL -$ -$ 250,000$ 125,000$ (125,000)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Utility Maintenance Worker 1.00 -$ 62,884$ 61,887$ 66,066$ 4,179$
DEPARTMENT TOTALS 1.00 -$ 62,884$ 61,887$ 66,066$ 4,179$
119 of 167
CITY OF VERNON
Fund 055 Department 8400 - Light & Power Fund - Building Maintenance Department
Budget Detail
2022-2023
DEPARTMENT:
055.8400 BUILDING MAINTENANCE
B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES
055.8400.501010 Salaries - Regular -$ 28,058 66,066$ 4,379$
055.8400.501012 Salaries - Premiums - - - (200)
055.8400.501020 Salaries - O.T.- 633 - -
TOTAL SALARIES - 28,692 66,066 4,179
BENEFITS
055.8400.502020 Retirement -$ 14,442 27,536$ 6,026$
055.8400.502030 Insurance Premiums - Medical - 7,498 24,020 7,559
055.8400.502060 FICA Taxes - 416 958 61
TOTAL BENEFITS - 22,357 52,514 13,646
SUPPLIES/SERVICES
055.8400.520000 Supplies 481$ 1,572 5,000$ -$
055.8400.540000 Uniforms 3,595 - 2,000 -
055.8400.570000 Vehicle Expense 962 2,568 6,000 -
055.8400.590000 Repair & Maintenance 61,018 98,361 204,500 95,000
055.8400.596200 Professional Services - Other 27,653 57,120 193,500 10,000
TOTAL SUPPLIES/SERVICES 93,708 159,621 411,000 105,000
TOTAL EXPENDITURES 93,708$ 210,670$ 529,580$ 122,825$
CAPITAL
055.8400.900000 Capital Outlays -$ - 125,000$ (125,000)$
TOTAL CAPITAL -$ -$ 125,000$ (125,000)$
120 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 8400 - BUILDING MAINTENANCE
SUPPLIES & SERVICES
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1
Home Depot, Staples,
Office Max, City Warehouse
Janitorial Supplies - floor wax, coffee, napkins, toilet paper, soap, etc.
Misc. department and office supplies (training binders, dividers, writing utensils, notepads,
etc.)5,000$ 5,000$
5,000$ 5,000$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 Uniform Supplier/PPE PPE/FR Gear/Safety Boots/VPU Standard Issue 2,000$ 2,000$
2,000$ 2,000$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 Forklift/Cart Forklift Fuel and Service L182 / Electric Cart Service L411 2,500$ 2,500$
2 Vehicle Expense Vehicle Fuel and Maintenance 3,500 3,500
6,000$ 6,000$
Account No. 590000 - Repair & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 To be bid Facilities maintenance items (UPS Routine Maintenance included) (Battery Replacement)15,000$ 15,000$
2 To be bid
Plant Safety Equipment Replacement/Maintenance items
(Based on Starr Loss Prevention & Risk Assessment recommendation)20,000 20,000
3 To be bid Elevator Minor/Moderate Repair Work 25,000 25,000
4 To be bid Bay Door Motor and Repair 35,000 35,000
5 Asbury Enviromental Services Environmental Disposal Services 14,500 14,500
6 Public Works Repair and Restoration Visitor Restroom 45,000
7 TBD Station A Window Maintenance 25,000
8 TBD Station A Structural Assessment 25,000
109,500$ 204,500$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Rusher Air Building Air Conditioner Service Contract 20,000$ 20,000$
2 Compressed Air Specialties/CSP Compressor Service 15,000$ 15,000$
3 Duthie Generator Service/Repair 15,000$ 15,000$
4 Thyssenkrupp Elevator Maintenance Service Contract 15,000 15,000
5 KoneCrane Crane Maintenance Service Contract 10,000 10,000
6 Competitive Bid Trash Removal Service Contract 10,000 10,000
7 Competitive Bid Janitorial Service (Common Area Services) (increased COVID-19 24/7 sanitizing)85,000 85,000
8 Competitive Bid Backflow Device Testing 1,000 1,000
9 Dewey Pest Control Pest and Rodent 7,500 7,500
10 Advanced Electronics Electronic Door Lock Service Contract 5,000 5,000
11 TBD Elevator Upgrade Assessment - 10,000
183,500$ 193,500$
121 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.7100 CUSTOMER SERVICE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES 171,603,816$ 174,933,229$ 192,604,181$ 201,852,846$ 9,248,665$
EXPENSES:
SALARIES 241,170$ 280,646$ 496,267$ 671,300$ 175,033$
BENEFITS 1,490,219 1,770,754 244,530 333,309 88,779
SUPPLIES/SERVICES 3,813,298 543,255 257,300 521,800 264,500
TOTAL EXPENSES 5,544,688$ 2,594,655$ 998,097$ 1,526,409$ 528,312$
CAPITAL -$ -$ 200,000$ 200,000$ -$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Business & Account Supervisor 1.00 107,736$ 117,659$ 127,249$ 189,416$ 62,167$
Customer Relations and Marketing Manager 1.00 - - 189,472 193,261 3,789
Integrated Resources Manger 0.10 19,326 19,326
Key Accounts Specialist 0.50 - - - 79,498 79,498
Utilities Customer Service Representative 1.00 142,980 145,127 76,480 77,980 1,500
Utilities Customer Service Representative, Senior 1.00 - 69,330 84,166 85,819 1,653
Overtime 2,000 2,000 1,000 1,000 -
Payout (vacation and sick excess hours)4,000 16,963 17,900 25,000 7,100
DEPARTMENT TOTALS 4.60 256,716$ 351,079$ 496,267$ 671,300$ 175,033$
122 of 167
CITY OF VERNON
Fund 055 Department 7100 - Light & Power Fund - Customer Service Department
Budget Detail
2022-2023
DEPARTMENT:
055.7100 CUSTOMER SERVICE
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
055.7100.441001 AB1890 Revenues 4,548,461$ 4,775,125 5,079,455$ 5,313,638$ 234,183$
055.7100.450010 Sale of Electricity 165,394,154 166,712,957 180,485,582 190,293,580 9,807,998
055.7100.450012 Discount of Sales (3,405,501) (3,725,459) (2,259,076) (3,850,123) (1,591,047)
055.7100.450016 Energy Cost Adjustment (ECA)295,164 2,917,694 5,612,736 8,890,335 3,277,599
055.7100.450017 Fuel Cost Adjustment Credit 148,128 (195,789) - - -
055.7100.450031 RPS Pass-through 4,402,440 4,281,557 3,360,520 880,452 (2,480,068)
055.7100.450080 Temporary Power 6,690 1,171 - - -
055.7100.450301 Special Charges 122,959 122,959 103,863 103,863 -
055.7100.600910 Other Income 91,321 43,014 221,101 221,101 -
TOTAL REVENUES 171,603,816$ 174,933,229$ 192,604,181$ 201,852,846$ 9,248,665$
SALARIES
055.7100.501010 Salaries - Regular 201,265$ 236,871 445,652$ 613,011$ 167,359$
055.7100.501012 Salaries - Premiums 39,906 43,775 49,615 57,289 7,674
055.7100.501020 Salaries - O.T.- - 1,000 1,000 -
241,170 280,646 496,267 671,300 175,033
BENEFITS
055.7100.502020 Retirement 1,437,836$ 1,714,607 157,821$ 224,783$ 66,962$
055.7100.502030 Insurance Premiums - Medical 48,974 52,194 79,513 98,792 19,279
055.7100.502060 FICA Taxes 3,410 3,953 7,196 9,734 2,538
1,490,219 1,770,754 244,530 333,309 88,779
SUPPLIES/SERVICES
055.7100.520000 Supplies 6,363$ 8,363 8,000$ 8,000$ -$
055.7100.530030 Bad Debt Expense - 188,822 100,000 400,000 300,000
055.7100.560000 Utilities - - 800 800 -
055.7100.590110 Repair & Maintenance - IT 102,183 68,434 115,000 103,000 (12,000)
055.7100.595200 Professional Services - IT 19,287 - 20,000 - (20,000)
055.7100.596500 Travel - - 500 2,000 1,500
055.7100.596700 Training - 1,405 13,000 8,000 (5,000)
055.7100.596706 VPU Credit Program 3,685,465 276,231 - - -
3,813,298 543,255 257,300 521,800 264,500
TOTAL EXPENDITURES 5,544,688$ 2,594,655$ 998,097$ 1,526,409$ 528,312$
CAPITAL
055.7100.860000 IT Equipment & Software -$ - 200,000$ 200,000$ -$
-$ -$ 200,000$ 200,000$ -$
123 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 7100 - CUSTOMER SERVICE
SUPPLIES & SERVICES
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Staples, Office Depot, etc.
Office supplies and utility bills stock:
This would include all various types of Envelopes for utility billing
(Regular, Final, Special, Non-Window, Windows, Self-Address) Postage & Ink 8,000$ 8,000$
8,000$ 8,000$
Account No. 530030 - Bad Debt Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 Per Financial Audit Requirements
Write-off on uncollectible accounts:
This include Electric, Water & Gas Services accounts that have unpaid their utility account either by filing
for Bankruptcy, skip town or unable to pay their bills 100,000$ 400,000$
100,000$ 400,000$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 Verizon 3 phones-Sprint/Nextel (Anthony, 2 Cust. Svc) @$20.00 per mo per line.$60.00 x 12 =$720.00 800$ 800$
800$ 800$
Account No. 590110 - Repairs & Maintenance IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Pitney Bowes Pitney Bowes (Mailing Stuffer):Service - new lease Maint. agreement 15,000$ 3,000$
2 Advanced Utilities CIS Infinity Annual Support-cost of Serv increase 50,000 50,000
3 Itron Mv90xi Annual Support/Added wireless netwoork Maint.15,000 15,000
4 Itron MVRS/FCS Annual Support/Added wireless Newwork Maint.35,000 35,000
115,000$ 103,000$
Account No. 595200 - Professional Services Technical
Detailed FY2022 FY2023
Name Description Budget Budget
1 Itron Mv90xi
Maintenance & Support software for time of use programs(big consumers of power) Software needs to
be updated-onetime not annual 10,000$ -$
2 Itron MVRS Maint. & Support software for regular electric, water & gas meters programs & handheld devices 10,000 -
20,000$ -$
Account No. 596500 - Travel
FY2022 FY2023
Type Name Budget Budget
1 Training Travel Lodging, transportation, meals (MV90 training for staff)500$ 2,000$
500$ 2,000$
Account No. 596700 - Training
FY2022 FY2023
Type Name Budget Budget
1 MV90 Software MV90 training software 10,000$ 5,000$
2 MVRS Software FCS training software 2,000 2,000
3 Customer Service Training Registration, webinars, scopa training, APPA, Fred Pryor, various training 1,000 1,000
13,000$ 8,000$
124 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.9000 ADMINISTRATION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 1,019,531$ 54,372$ 522,978$ 242,978$ (280,000)$
EXPENSES:
SALARIES 886,942$ 1,200,104$ 1,330,178$ 1,305,309$ (24,869)$
BENEFITS 385,158 538,601 622,624 685,960 63,336
SUPPLIES/SERVICES 33,331,190 30,696,839 51,523,569 83,730,968 32,207,399
TOTAL EXPENSES 34,603,289$ 32,435,544$ 53,476,371$ 85,722,237$ 32,245,866$
CAPITAL -$ -$ 255,000$ 55,000$ (200,000)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Account Clerk, Senior 1.00 134,973$ 129,834$ 74,980$ 76,480$ 1,500$
Administrative Analyst 1.00 98,483 102,433 112,281 115,604 3,323
Assistant General Manager of Public Utilities 1.00 225,725 246,515 253,911 258,989 5,078
General Manager of Public Utilities 0.50 253,662 304,440 313,430 159,801 (153,629)
Planning and Analysis Manager 1.00 - - 198,946 202,924 3,978
Utilities Compliance Administrator 1.00 291,009 317,811 245,510 166,946 (78,564)
Utilities Compliance Analyst 1.00 - 102,432 116,320 118,646 2,326
Utilities Operations Supervisor 1.00 - - - 185,758 185,758
Utilities Strategic Planning Specialist - - - - 12,161 12,161
Overtime 2,000 2,000 2,000 2,000 -
Payout (vacation and sick excess hours)11,200 9,085 12,800 6,000 (6,800)
DEPARTMENT TOTALS 7.50 1,017,052$ 1,214,550$ 1,330,178$ 1,305,309$ (24,869)$
125 of 167
CITY OF VERNON
Fund 055 Department 9000 - VPU Fund Administration Department
Budget Detail
2022-2023
DEPARTMENT:
055.9000 ADMINISTRATION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
055.9000.466900 Miscellaneous Revenues 99,259$ 215 -$ -$ -$
055.9000.600910 Other Income - - - - -
055.9000.610110 Investment Income 918,236 57,190 300,000 20,000 (280,000)
055.9000.610170 Unrealized (Gain)Loss on Investments 2,036 (3,033) - - -
055.9000.690100 Operating Transfer In - - 222,978 222,978 -
TOTAL REVENUES 1,019,531$ 54,372$ 522,978$ 242,978$ (280,000)$
SALARIES
055.9000.501010 Salaries - Regular 859,103$ 1,159,897 1,288,141$ 1,261,536$ (26,605)$
055.9000.501012 Salaries - Premiums 27,839 40,207 40,037 41,773 1,736
055.9000.501020 Salaries - O.T.- - 2,000 2,000 -
TOTAL SALARIES 886,942 1,200,104 1,330,178 1,305,309 (24,869)
BENEFITS
055.9000.502020 Retirement 254,415$ 374,319 450,609$ 512,936$ 62,327$
055.9000.502030 Insurance Premiums - Medical 118,031 147,220 152,727 154,097 1,370
055.9000.502060 FICA Taxes 12,712 17,061 19,288 18,927 (361)
TOTAL BENEFITS 385,158 538,601 622,624 685,960 63,336
SUPPLIES/SERVICES
055.9000.503035 Insurance Premiums - Property/Crime -$ 390,459 418,750$ 568,310$ 149,560$
055.9000.520000 Supplies 9,539 3,411 22,300 22,300 -
055.9000.520010 Supplies - IT 330 - 10,000 10,000 -
055.9000.530010 In-Lieu Taxes 4,582,784 4,781,720 5,093,787 5,430,392 336,605
055.9000.530015 Real Estate Taxes 39,191 - - - -
055.9000.530030 Bad Debt Expense 1,529,272 425,890 - - -
055.9000.540000 Uniforms 10,567 8,075 15,000 10,000 (5,000)
055.9000.550000 Advertisement/Promotion 5,215 3,045 117,500 117,500 -
055.9000.560000 Utilities 492,752 508,058 475,000 475,000 -
055.9000.560010 Utilities - IT 10,062 28,044 14,208 15,000 792
055.9000.570000 Vehicle Expense 2,044 2,448 10,000 10,000 -
055.9000.590000 Repairs & Maintenance - - - 150,000 150,000
055.9000.592010 Bank Service Fees 10,552 14,732 30,000 25,000 (5,000)
055.9000.593200 Professional Services - Legal 54,962 42,077 100,000 300,000 200,000
055.9000.595200 Professional Services - Technical 3,574,438 1,921,281 375,000 475,000 100,000
055.9000.596200 Professional Services - Other 446,732 599,095 1,580,000 2,150,000 570,000
055.9000.596500 Travel 22,179 46,566 32,000 32,000 -
055.9000.596550 Membership Dues 156,622 28,324 138,000 160,000 22,000
055.9000.596600 Books & Publications 3,448 2,837 25,500 25,500 -
055.9000.596700 Employee Development & Training 78,703 26,531 144,500 144,500 -
055.9000.599800 General City Administrative Service Exp 3,079,051 3,140,632 3,203,444 3,267,513 64,069
055.9000.760005 Bond Principal Retirement - - 24,975,000 50,110,000 25,135,000
055.9000.760010 Bond Interest Paid 19,222,747 18,723,613 14,203,580 19,597,353 5,393,773
055.9000.790100 Operating Transfer Out - - 540,000 635,600 95,600
TOTAL SUPPLIES/SERVICES 33,331,190 30,696,839 51,523,569 83,730,968 32,207,399
TOTAL EXPENDITURES 34,603,289$ 32,435,544$ 53,476,371$ 85,722,237$ 32,245,866$
CAPITAL
055.9000.900000 Capital Outlay - - 255,000 55,000 (200,000)
TOTAL CAPITAL -$ -$ 255,000$ 55,000$ (200,000)$
126 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9000 - ADMINISTRATION
SUPPLIES & SERVICES
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Office depot, Staples, Home depot, etc.General office supplies 10,000$ 10,000$
2 FedEx, etc. Delivery services 1,000 1,000
3 TBD Administrative Notices 3,000 3,000
4 TBD Ink refills, regular & custom rubber stamps 300 300
5 TBD MRE Small Meals for Emergency 3,000 3,000
6 TBD MRE Full Meals for Emergency 2,000 2,000
7 Office depot, home depot, etc.Emergency supplies, including water and first aid materials 2,000 2,000
8 Silva Printing Business Cards 1,000 1,000
22,300$ 22,300$
Account No. 520010 - Supplies IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 IT Software and Hardware Miscellaneous IT Purchases (includes Everbridge)10,000$ 10,000$
10,000$ 10,000$
Account No. 530010 - In-Lieu Taxes
Detailed FY2022 FY2023
Description Budget Budget
1 Franchise Taxes
3% of Retail sales paid as franchise tax to General Fund, excluding in-lieu tax which is accounted for in
the rates (formula includes 2.91% of Sale of Electricity [Retail Sales])5,093,787$ 5,430,392$
5,093,787$ 5,430,392$
Account No. 503035 - Insurance Premiums (Property)
Detailed FY2022 FY2023
Description Budget Budget
1 Aon Insurance Services Property Insurance 418,750$ 568,310$
418,750$ 568,310$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 To be bid Office Staff Uniforms 15,000$ 10,000$
15,000$ 10,000$
127 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9000 - ADMINISTRATION
SUPPLIES & SERVICES
2022-2023
Account No. 550000 - Advertisement & Promotions
Detailed FY2022 FY2023
Name Description Budget Budget
1 To be bid Branding and Promoting APPA RP3, Customer Programs, Initiatives, Compliance Programs 95,000$ 95,000$
2 To be bid Marketing materials: legislative/community outreach 2,500 2,500
3 To be bid Website, Electronic Notification, and Outreach 5,000 5,000
4 Various Job Recruitment 5,000 5,000
5 Vernon Facility Tours SCPPA, Governmental Affairs, Compliance, Historical 10,000 10,000
117,500$ 117,500$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Lights Annual Street Light Electrical Expense 475,000$ 475,000$
475,000$ 475,000$
Account No. 560010 - Utilities IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Verizon Wireless Telecommunication Charges 7,244$ 8,000$
2 AT&T CalNet2 Telecommunication Charges 4,152 4,000
3 AT&T Wireless Telecommunication Charges 2,812 3,000
14,208$ 15,000$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Vehicles City Hall Pool Vehicles Repair, Maintenance, & Fuel 10,000$ 10,000$
10,000$ 10,000$
Account No. 590000 - Repair & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 To be bid Restroom Restoration on VPU 3rd Floor -$ 150,000$
-$ 150,000$
128 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9000 - ADMINISTRATION
SUPPLIES & SERVICES
2022-2023
Account No. 592010 - Bank Service Fees
Detailed FY2022 FY2023
Name Description Budget Budget
1 THE BANK OF NEW YORK MELLON, TRUST
COMPANY
Admin and wire processing fees.
30,000$ 25,000$
30,000$ 25,000$
Account No. 593200 - Professional Service Legal
Detailed FY2022 FY2023
Name Description Budget Budget
1 RFP General Utility Legal Services 50,000 50,000
2 Duncan Weinburg Genzer Federal Legal Services (Utility)50,000 250,000
100,000$ 300,000$
Account No. 595200 - Professional Service Technical
Detailed FY2022 FY2023
Name Description Budget Budget
1 BLX Group LLC Financial Advisory Services 200,000 200,000
2 G2 August 2020 (Contract Year 3 of 3)Gas Compliance Services 175,000 275,000
375,000$ 475,000$
Account No. 596200 - Professional Service Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 TBD Consulting Services for strategic and business plan development 80,000$ 100,000$
2 Jacobs Consultant services for regulatory and environmental compliance matters.150,000 150,000
3 SCPPA Joint Powers Utility Participation 40,000 50,000
4 Everbridge Customer Notification Safety Mobile App (moved to Supplies IT)5,000 -
5 Tetra Tech Third Party Compliance Consultant / GHG verifier 10,000 10,000
6 HPI Seminar Human Performance Improvement Program 5,000 5,000
7 TBD Utility Reporting, Analysis and Planning (Customer Programs, Electrificiation, LCFS Program, Water 200,000 200,000
8 JRM Security Services all facilities 300,000 200,000
9 Cooper Compliance Compliance Management Software & Process Documentation - SCPPA Task Order 85,000 85,000
10 To be bid Legislative Support/ Research/ Technical /Grant Writing 45,000 60,000
11 Port Canavaral Technical Generation Expertise & Jawbone / Litigation Matters 265,000 265,000
12 TBD Utility Program Assessments 150,000 100,000
13 TBD Wildfire Mitigation Plan 3rd Party Verification 15,000 15,000
14 TBD Physical Security Plan and 3rd Party Verification 30,000 -
15 TBD Alternative Fuel Vehicle Complex 100,000 100,000
16 TBD City Sustainability Plan and Program (e.g., Recycling, Incentitives, Emissions, Rebates)100,000 -
17 TBD / RFP Electrification and Battery Storage Initiatives 500,000
18 TBD Green Tariff Assessment 50,000 -
19 RFP Electric Cost of Service and Rate Design for 5 and 10 years 250,000
20 RFP Shared Lobbyist with City Administration 60,000
1,580,000$ 2,150,000$
129 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9000 - ADMINISTRATION
SUPPLIES & SERVICES
2022-2023
Account No. 596500 - Travel
Event FY2022 FY2023
Type Name Budget Budget
1 APPA APPA 5,000$ 5,000$
2 CMUA CMUA 5,000 5,000
3 SCAQMD SCAQMD 500 500
4 CEC CEC 1,000 1,000
5 OSHA OSHA 1,000 1,000
6 SCPPA SCPPA 5,000 5,000
7 CUEA CUEA 1,500 1,500
8 CPUC CPUC 1,500 1,500
9 Performance (Fixed Pryor)Performance (Fixed Pryor)1,500 1,500
10 Human Performance Human Performance 5,000 5,000
11 Regulatory Compliance Regulatory Compliance 5,000 5,000
32,000$ 32,000$
Account No. 596550 - Memberships
Detailed FY2022 FY2023
Name Description Budget Budget
1 CMUA California Municipal Utilities Association - Membership Dues plus 5% annual increases 74,000$ 80,000$
2 APPA APPA Annual Dues 40,000 50,000
3 CUEA Annual Invoice (Mutual Aid)1,000 2,000
4 AWWA Membership 1,000 1,000
5 BizFed Legislative Resource 6,000 6,000
6 APPA Deed Program - Research and Development 10,000 15,000
7 Planet Bids Competitive Bidding Platform 5,000 5,000
8 Western Energy Institute Shared membership through SCPPA 1,000 1,000
138,000$ 160,000$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 TBD Industry Books, Publications, and Subscriptions 8,000$ 8,000$
2 AWWA Reference, Procedure, Industry Standard 2,500 2,500
3 IEEE/ANSI Standards Purchase of Standards 2,500 2,500
4 APPA and other industry publications Industry Publications- Training Materials and Manuals 10,000 10,000
5 CapitolTrack Legislative Tracking Service 2,500 2,500
25,500$ 25,500$
130 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9000 - ADMINISTRATION
SUPPLIES & SERVICES
2022-2023
Account No. 596700 - Employee Development & Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 NERC/WECC NERC/WECC Compliance Program 5,000$ 5,000$
2 Fred Pryor Performance (Fred Pryor)10,000 10,000
3 SCPPA SCPPA Training 25,000 25,000
4 APPA/AWWA Industry Training 15,000 15,000
5 NERC NERC Workshop 5,000 5,000
6 Industry Training Organization Regulatory Standards and Cyber Security 10,000 10,000
7 Osha, State and Federal Agencies Certifications, safety training, and compliance training 60,000 60,000
8 Various (e.g., EUCI and APPA)Enterprise Risk Management Training 4,500 4,500
9 Various Internal Training & Development 10,000 10,000
144,500$ 144,500$
Account No. 599800 - General City Administrative Service Exp
Detailed FY2022 FY2023
Name Description Budget Budget
1 City of Vernon Overhead Allocation 3,203,444$ 3,267,513$
3,203,444$ 3,267,513$
Account No. 760005 - Principal on Bonds
Detailed FY2022 FY2023
Name Description Budget Budget
1 All Bonds Principal Repayment 24,975,000$ 50,110,000$
24,975,000$ 50,110,000$
Account No. 760010 - Interest on Bonds
Detailed FY2022 FY2023
Name Description Budget Budget
1 All Bonds Interest Payments 14,203,580$ 19,597,353$
14,203,580$ 19,597,353$
Account No. 790100 - Operating Transfer Out
Detailed FY2022 FY2023
Description Budget Budget
1 Transfer Reimbursement for General Government Services (Excludes Legal Services), ERP System.540,000$ 635,600$
540,000$ 635,600$
131 of 167
CITY OF VERNON
Budget Summary
2021-2022
DEPARTMENT:
055.9100 ENGINEERING
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 21,602$ 118,093$ 1,100,000$ 250,000$ (850,000)$
EXPENSES:
SALARIES 998,512$ 887,585$ 1,122,671$ 1,158,264$ 35,593$
BENEFITS 382,450 380,891 449,914 536,981 87,067
SUPPLIES/SERVICES 54,616 68,963 368,000 305,500 (62,500)
TOTAL EXPENSES 1,435,578$ 1,337,439$ 1,940,585$ 2,000,745$ 60,160$
CAPITAL
REVENUES -$ -$ 13,935,937$ 5,050,500$ (8,885,437)$
EXPENDITURES -$ -$ 15,402,137$ 9,361,700$ (6,040,437)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Account Clerk, Senior 1.00 -$ -$ 74,980$ 76,480$ 1,500$
Administrative Assistant, Senior - 66,657 69,330 - - -
Associate Electrical Engineer 1.75 288,338 187,160 192,764 229,312 36,548
Computer Aided Drafting Technician 1.00 56,152 - 71,410 69,370 (2,040)
Electric Engineering Technician - - 64,207 - - -
Electrical Engineer 2.00 321,237 464,834 328,136 336,249 8,113
Utilities Engineering Manager 0.95 123,803 128,767 188,998 192,778 3,780
Utilities Program Analyst 1.00 - - 141,283 144,075 2,792
Utilities Project Coordinator - 145,704 151,539 - - -
Overtime 8,000 8,000 45,000 45,000 -
Payout (vacation and sick excess hours)43,500 19,536 33,100 18,000 (15,100)
Stand-by 60,700 60,700 47,000 47,000 -
DEPARTMENT TOTALS 7.70 1,114,091$ 1,154,073$ 1,122,671$ 1,158,264$ 35,593$
132 of 167
CITY OF VERNON
Fund 055 Department 9100 - Light & Power Fund - Engineering
Budget Detail
2022-2023
DEPARTMENT:
055.9100 ENGINEERING
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
055.9100.464000 Joint Pole Revenue 21,602$ 118,093 200,000$ 250,000$ 50,000$
055.9100.450121 Construction Revenue - - 900,000 -$ (900,000)
055.9100.469300 Reserve Applied - - - -$ -
TOTAL REVENUES 21,602$ 118,093$ 1,100,000$ 250,000$ (850,000)$
SALARIES
055.9100.501010 Salaries - Regular 816,592$ 771,432 960,053$ 1,010,046$ 49,993$
055.9100.501012 Salaries - Premiums 121,340 103,363 117,618 103,218 (14,400)
055.9100.501020 Salaries - O.T.60,579 12,790 45,000 45,000 -
TOTAL SALARIES 998,512$ 887,585 1,122,671 1,158,264 35,593
BENEFITS
055.9100.502020 Retirement 254,232$ 277,369 318,056$ 406,416$ 88,360$
055.9100.502030 Insurance Premiums - Medical 108,507 92,029 110,579 113,770 3,191
055.9100.502060 FICA Taxes 14,311 12,584 16,279 16,795 516
055.9100.502070 Unemployment 5,400 (1,091) 5,000 - (5,000)
TOTAL BENEFITS 382,450$ 380,891$ 449,914$ 536,981 87,067$
SUPPLIES/SERVICES
055.9100.520000 Supplies 1,307$ 1,502 5,000$ 4,000$ (1,000)$
055.9100.520010 Supplies - IT - - 5,000 5,000 -
055.9100.540000 Uniforms 119 2,251 5,000 3,500 (1,500)
055.9100.560000 Utilities - - 500 500 -
055.9100.570000 Vehicle Expense 4,577 5,096 10,000 5,000 (5,000)
055.9100.590000 Repairs & Maintenance - 1,000 - - -
055.9100.590110 Repair & Maintenance - IT 32,969 41,237 307,500 241,000 (66,500)
055.9100.596200 Professional Services - Other 13,747 14,763 15,000 25,000 10,000
055.9100.596500 Travel 1,108 206 1,000 2,500 1,500
055.9100.596550 Memberships 116 180 2,000 2,000 -
055.9100.596600 Books & Publications 116 - 2,000 2,000 -
055.9100.596700 Training 557 2,729 15,000 15,000 -
TOTAL SUPPLIES/SERVICE 54,616$ 68,963$ 368,000$ 305,500$ (62,500)$
TOTAL EXPENSES 1,435,578$ 1,337,439$ 1,940,585$ 2,000,745$ 60,160$
CAPITAL
REVENUES
055.9100.600105 Bond Proceeds -$ - 13,935,937$ 5,050,500$ (8,885,437)$
TOTAL CAPITAL REVENUES -$ -$ 13,935,937$ 5,050,500$ (8,885,437)$
CAPITAL
055.9100.900000 Capital Outlays -$ - 15,402,137$ 9,361,700$ (6,040,437)$
TOTAL CAPITAL EXPENSES -$ -$ 15,402,137$ 9,361,700$ (6,040,437)$
133 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9100 - ELECTRICAL ENGINEERING
SUPPLIES & SERVICES
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Staples Business Solutions General offices supplies 500$ 500$
2 Duron Business Forms Perforated laser sheets forms 500
3 Graybar General Supplies 1,000 1,000
4 Home Depot General Supplies 750 500
5 ARC General Supplies 500 500
6 Royal Wholesale General Supplies 500 500
7 Walters Technology General Supplies 500 500
8 Current Wholesale General Supplies 750 500
5,000$ 4,000$
Account No. 520010 - Supplies -IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Computer and Networking Equipment 5,000$ 5,000$
5,000$ 5,000$
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 Shoeteria Steel toe shoes and boots for engineers 1,000$ 1,000$
2 PPE FR Gear for Field Inspection 4,000 2,500
5,000$ 3,500$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 Engineering Division use of City utilities 500$ 500$
500$ 500$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY0
Name Description Budget Budget
1 City Vehicles Engineering Pool and Utilities Engineering Manager Vehicle,
Maintenance and Fuel 10,000$ 5,000$
10,000$ 5,000$
134 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9100 - ELECTRICAL ENGINEERING
SUPPLIES & SERVICES
2022-2023
Account No. 590110 - Repair & Maintenance IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Survalent Technology SCADA annual maintenance service 50,000$ 50,000$
2 Digital Map Products CITY GIS map data services 75,000 25,000
3 Operation Technology ETAP upgrade & maintenance services 15,000 50,000
4 Xerox Xerox Corporation maintenance services 10,000 -
5 Milsoft Milsoft firmware maintenance 5,000 5,000
6 ETAP ETAP Support 75,000 75,000
7 CAISO Rig Maint/Support Rig 20,000 20,000
8 AutoCAD AutoCAD Annual Support 5,500 5,000
9 GIS - Updates, note pads Updates to GIS and purchase of field note pads 50,000 1,000
10 Various Miscellenous 2,000 10,000
307,500$ 241,000$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 SCJP Southern California Joint Pole services 15,000$ 25,000$
15,000$ 25,000$
Account No. 596500 - Travel
Event FY2022 FY2023
Type Name Budget Budget
1 City Employee Various travel expenses related to utility meetings EUSERC, G.O.95,
IEEE, Joint Pole Committee 1,000$ 2,500$
1,000$ 2,500$
Account No. 596550 - Memberships
Detailed FY2022 FY2023
Name Description Budget Budget
1 IEEE, EUSERC, GO 95, P.E., etc.Membership dues 2,000$ 2,000$
2,000$ 2,000$
135 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9100 - ELECTRICAL ENGINEERING
SUPPLIES & SERVICES
2022-2023
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1
ANSI, IEEE and Technical Specs.Engineering and technical articles and standards 2,000$ 2,000$
2,000$ 2,000$
Account No. 596700 - Training
Event FY2022 FY2023
Type Name Budget Budget
1 SCPPA, Fred Pryor, SCADA, etc. City Employee training: Engineering, SCADA, Safety, system protection,
and employee development.15,000$ 15,000$
15,000$ 15,000$
136 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.9190 MALBURG GENERATING STATION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
EXPENSES:
SALARIES -$ -$ -$ 2,950,635$ 2,950,635$
BENEFITS - - - 1,617,998 1,617,998
SUPPLIES/SERVICES - - - 11,889,833 2,613,180
TOTAL EXPENSES -$ -$ -$ 16,458,466$ 7,181,813$
CAPITAL -$ -$ -$ 559,065$ 559,065$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Assistant General Manager of Generation and Op 1.00 -$ -$ -$ 258,989$ 258,989$
Control Room Operator I 2.00 - - - 220,611 220,611
Control Room Operator II 2.00 - - - 237,291 237,291
Control Room Operator, Senior 1.00 - - - 137,347 137,347
Field Operator I 3.00 - - - 274,459 274,459
Field Operator II 2.00 - - - 225,992 225,992
Instrument & Control Tech 1.00 - - - 102,491 102,491
Instrument & Control Tech Lead 1.00 - - - 124,578 124,578
Maintenance Manager 1.00 - - - 175,293 175,293
Material Control Administrator 1.00 - - - 84,319 84,319
Mechanic, Lead 1.00 - - - 130,807 130,807
Mechanic/Welder 1.00 - - - 92,962 92,962
Operations Manager 1.00 - - - 193,261 193,261
Plant Engineer 1.00 - - - 184,058 184,058
Site Safety Admin-Control Room Operator 1.00 - - - 130,807 130,807
Utilities Admin Analyst 1.00 - - - 118,646 118,646
Utilities Operations Manager 1.00 - - - 223,724 223,724
Payout (vacation and sick excess hours)- - - 35,000 35,000
DEPARTMENT TOTALS 22.00 -$ -$ -$ 2,950,635$ 2,950,635$
137 of 167
CITY OF VERNON
Fund 055 Department 9190 - VPU Fund Malburg Generating Station
Budget Detail
2022-2023
DEPARTMENT:
055.9190 MALBURG GENERATING STATION
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
SALARIES
055.9190.501010 Salaries - Regular -$ -$ -$ 2,915,635$ 2,915,635$
055.9190.501012 Salaries - Premiums - - - 35,000 35,000
055.9190.501020 Salaries - O.T.- - - - -
TOTAL SALARIES - - - 2,950,635 2,950,635
BENEFITS
055.9190.502020 Retirement -$ -$ -$ 1,211,677$ 1,211,677$
055.9190.502030 Insurance Premiums - Medical - - - 363,537 363,537
055.9190.502060 FICA Taxes - - - 42,784 42,784
TOTAL BENEFITS - - - 1,617,998 1,617,998
SUPPLIES/SERVICES
055.9190.500130 Reclaim Water -$ -$ -$ 580,000$
055.9190.500230 Generation Expense - - - 1,492,825 1,492,825
055.9190.503035 Insurance Premiums - - - 2,106,462 2,106,462
055.9190.520000 Supplies - - - 34,244 34,244
055.9190.520010 Supllies IT - - - 10,000
055.9190.540000 Uniforms - - - 44,920 44,920
055.9190.560010 Utilities - - - 73,061 73,061
055.9190.570000 Vehicle Expense - - - 17,000 17,000
055.9190.590000 Repairs & Maintenance - - - 7,246,231 7,246,231
055.9190.590110 Repairs & Maintenance IT - 86,140
055.9190.594200 Professional Services - Administrative - - - - -
055.9190.595200 Professional Services - Technical - - - 109,500 109,500
055.9190.595210 Professional Services - IT - - - - -
055.9190.596200 Professional Services - Other - - - - -
055.9190.596500 Travel - - - 27,400 27,400
055.9190.596550 Membership Dues - - - 550 550
055.9190.596600 Books & Publications - 3,500
055.9190.596700 Employee Development & Training - - - 58,000 58,000
TOTAL SUPPLIES/SERVICES - - - 11,889,833 11,210,193
TOTAL EXPENDITURES -$ -$ -$ 16,458,466$ 16,458,466$
CAPITAL
055.9190.900000 Capital Outlay - - - 559,065 559,065
TOTAL CAPITAL -$ -$ -$ 559,065$ 559,065$
138 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9190 - MALBURG GENERATING STATION
SUPPLIES & SERVICES
2022-2023
Account No. 500130 - Purchased Water
Detailed FY2022 FY2023
Name Description Budget Budget
1 Reclaim water Reclaimed water supply 580,000$
Account No. 500230 - Generation Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 Safety Training, supplies (average of multiyear spend)51,244$
2 Environmental Permits, inspections, testing, fees, 3rd party reporting (GHG)256,183
3 Chemicals Treatments for Nox control, boiler water, cooling tower, circulating water etc 481,722
4 Jacobs Environmental reporting, compliance, consulting MGS and Station A 400,000
5 LAC Sanitation waste water charge MGS 53,676
6 TBA NOX 250,000
-$ 1,492,825$
Account No. 503035 - Insurance Premiums
Detailed FY2022 FY2023
Name Description Budget Budget
1 Aon Insurance Services Excess Liability 514,121$
2 Aon Insurance Services Property Insurance 1,355,735
3 Aon Insurance Services Commercial Property 153,038
4 Aon Insurance Services Environmental 57,416
5 Aon Insurance Services Terrorism 26,152
-$ 2,106,462$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Description Budget Budget
1 Postage & Delivery All postage/shipping related charges for administrative work.9,733$
2 Office Furniture & Equipment Chairs, office furniture, white boards, desk replacements, etc.14,250
3 Office Supplies Misc Office Supplies, Paper, etc.10,261
-$ 34,244$
Account No. 520010 - Supplies IT
Detailed - FY2023
Description Budget Budget
1 Computer Hardware Replacement computers( replacing Windows 7 machines)5,000$
2 Electronic Round Devices Handheld Electronic Rounds Devices 5,000
-$ 10,000$
Account No. 530040 - Uniforms
Detailed FY2022 FY2023
Description Budget Budget
1 Uniform Staff Uniforms Cintas/PPE / Jackets/ Rain Gear / misc 40,720$
2 Shoetaria Steel Toe Shoes 4,200
-$ 44,920$
139 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9190 - MALBURG GENERATING STATION
SUPPLIES & SERVICES
2022-2023
Account No. 500130 - Purchased Water
Detailed FY2022 FY2023
Name Description Budget Budget
Account No. 560010 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 Trash & Hazmat Disposal Trash services, Haz Waste Disposal 18,161$
2 Cell Phone Stipends 5 Employees 2,700
3 VPU Fiber Services 52,200
-$ 73,061$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City maintenance and gas Three vehicles, gas and maintenance 17,000$
-$ 17,000$
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 General Repairs & Maintenance All general repair and maintenance items, component replacements 390,193$
2 Siemens LTSA/LTP Expenses Siemens LTP/LTSA related expenses, milestone payments, etc. 5,833,411
3 Siemens LTSA milestone Tax Tax on materials for LTSA assigned at 35% of milestone and tax rate of $10.25%209,274
4 Siemens Siemens other support and materials 50,000
5 Consumables Oils, filters, equipment fuel, cleaning products, propane, bin stock hardware, and lubricants 95,554
6 Major Maintenance BOP Outage-related Maintenance Expenses (see MM-BOP tab)617,800
7 CEMS CO Analyzer Replacements Replace outdated analyzers (high maintenance) with Teledyne upgraded analyzers 50,000
8 Tools & Equipment Mechanics Tools, Operator Tools, portable pumps, vacuums, etc.59,072
-$ 7,305,303$
Account No. 590110- Repairs & Maintenance IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 Software CMMS implementation 3,570$
2 Software PI Implementation 17,000
3 Software OLAP Analysis Software 3,570
4 Software Plant Backup/Disaster Recovery 2,000
5 Software DCS PLC upgrade/Maintenance 5,000
6 Software Misc 15,000
7 Software Inspections Pro - Electronic Rounds Update 40,000
-$ 86,140$
Account No. 595200 - Professional Service Technical
Detailed FY2022 FY2023
Name Description Budget Budget
2 Schweitzer Engineering Laboratories Basement relay engineering support for MGS protection implementation 85,000
3 Pacific Standard Environmental CEMS Technical Support - As Needed 7,000 14,500
5 TBD LTSA negotiation support 10,000
7,000$ 109,500$
140 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9190 - MALBURG GENERATING STATION
SUPPLIES & SERVICES
2022-2023
Account No. 500130 - Purchased Water
Detailed FY2022 FY2023
Name Description Budget Budget
Account No. 596500 - Travel
Event FY2022 FY2023
Type Name Budget Budget
1 CTOTF Conference Semi-Annual CTOTF Conference attendance - Utilities Operations Manager (Executive Board)5,800$
2 CTOTF Conference Annual CTOTF Conference Attendance - Maintenance Mgr, Engineer, Fall-Only (non-airfare travel)3,600
3 Siemens T3K Training T3K training campus in Alpharetta, Georgia - 2 Employees 4,500
4 Other Training Travel Misc travel for training, local and non-local 5,500
4 Other Travel TBD 8,000
5
6
-$ 27,400$
Account No. 596550 - Memberships
Detailed FY2022 FY2023
Name Description Budget Budget
1 Plant Engineer Various License Renewals PE License, Steam Engineer License, Professional Development 550$
-$ 550$
Account No. 596600 - Books & Publications
Detailed - FY0
Name Description Budget Budget
1 Subscriptions Platts Gas, Other Admin.1,000$ 3,500$
1,000$ 3,500$
Account No. 596700 - Employee Development & Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 Training - Online Resource Online Training ($1K/Employee Assumption)20,000$
2 Training -Materials Various expenses for training supplies and materials 4,500
3 Conference Registration Fees CTOTF (Spring/Fall), T3K User Group, Misc.5,500
4 Siemens T3000 Siemens T3000 Control System Training Course (2 Classes Total)11,000
5 Environmental Training CEMS & Teledyne Training, Regulatory Training 12,000
6 Employee Recognition Employee events, recognition, and team building. 5,000
7
8
-$ 58,000$
141 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.9200 RESOURCE PLANNING
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 26,429,640$ 35,612,737$ 20,172,710$ 27,472,248$ 7,299,538$
EXPENSES:
SALARIES 681,185$ 584,144$ 1,064,732$ 986,377$ (78,355)$
BENEFITS 305,097 226,316 473,566 476,319 2,753
SUPPLIES/SERVICES 109,959,359 131,630,543 141,732,214 119,098,405 (22,633,809)
TOTAL EXPENSES 110,945,641$ 132,441,004$ 143,270,512$ 120,561,101$ (22,709,411)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Associate Resource Scheduler 1.00 240,914$ 132,232$ 136,155$ 138,847$ 2,692$
Intergrated Resource Manager 0.80 257,972 - 208,893 154,609 (54,284)
Power Resources Settlement Analyst 1.00 - - 105,505 109,115 3,610
Principal Resource Scheduler / Trader 2.00 307,259 349,779 360,222 335,592 (24,630)
Resource Planner 1.00 125,692 - 148,457 144,214 (4,243)
Settlement Analyst - - 102,432 - - -
Overtime 8,500 8,500 5,000 5,000 -
Payout (vacation and sick excess hours)39,900 22,498 30,500 29,000 (1,500)
Stand-by 70,000 70,000 70,000 70,000 -
DEPARTMENT TOTALS 5.80 1,050,237$ 685,441$ 1,064,732$ 986,377$ (78,355)$
142 of 167
CITY OF VERNON
Fund 055 Department 9200 - Light & Power Fund - Resource Planning Department
Budget Detail
2022-2023
DEPARTMENT:
055.9200 RESOURCE PLANNING
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
055.9200.450011 Sale of Electricity - Wholesale -$ 6,135,500 3,191,380$ 2,262,324$ (929,056)$
055.9200.450015 RA Capacity Sales 2,297,330 - - - -
055.9200.450022 Transportation Revenue- COV Retail 727,128 1,022,471 658,800 1,145,823 487,023
055.9200.450026 Natural Gas Sales - COV Retail 7,225,763 9,621,617 7,375,755 11,819,152 4,443,397
055.9200.450027 Natural Gas Sales - Prepaid/COV Retail - - - - -
055.9200.450028 Natural Gas Sales - Prepaid/SMUD Wholesale 7,015,695 7,888,232 - - -
055.9200.450030 ARB Allocated Allowance 6,177,191 6,475,158 6,898,163 8,596,823 1,698,660
055.9200.450031 Renewables Transactions - - - - -
055.9200.450340 Transmission Revenue 2,986,532 2,773,285 1,948,612 3,648,126 1,699,514
055.9200.450025 Biomethane Gas - 1,696,473 100,000 - (100,000)
TOTAL REVENUES 26,429,640$ 35,612,737$ 20,172,710$ 27,472,248$ 7,299,538$
SALARIES
055.9200.501010 Salaries - Regular 571,987$ 436,479 902,856$ 855,237$ (47,619)$
055.9200.501012 Salaries - Premiums 106,528 147,665 156,876 126,140 (30,736)
055.9200.501020 Salaries - O.T.2,670 - 5,000 5,000 -
TOTAL SALARIES 681,185 584,144 1,064,732 986,377 (78,355)
BENEFITS
055.9200.502020 Retirement 218,229$ 153,109 319,529$ 348,826$ 29,297$
055.9200.502030 Insurance Premiums - Medical 77,095 64,847 138,598 113,191 (25,407)
055.9200.502060 FICA Taxes 9,773 8,360 15,439 14,302 (1,137)
TOTAL BENEFITS 305,097 226,316 473,566 476,319 2,753
SUPPLIES/SERVICES
055.9200.500150 Energy 13,293,046$ 18,919,311 31,949,590$ 35,243,813$ 3,294,223$
055.9200.500151 Energy - SCPPA (28,152) (60) - - -
055.9200.500154 Renewable Energy 6,901,857 5,788,777 4,342,341 4,298,921 (43,420)
055.9200.500160 Natural Gas Expense 18,556,140 25,079,964 27,765,482 40,792,703 13,027,221
055.9200.500162 Biomethane Fuel 2,084,541 4,579,625 3,613,594 - (3,613,594)
055.9200.500163 Greenhouse Gas Cost 4,947,698 4,407,838 4,374,771 6,601,148 2,226,377
055.9200.500170 Transmission - Firm 16,349,954 17,813,262 16,396,376 23,623,114 7,226,738
055.9200.500180 Capacity 44,545,637 50,194,036 48,756,637 3,290,544 (45,466,093)
055.9200.500190 Ancillary Services 11,511 761,766 745,878 927,155 181,277
055.9200.500210 Grid Management Charges 782,679 806,103 806,826 822,963 16,137
055.9200.500240 Ferc Filing Charges 263,246 757,233 141,821 144,657 2,836
055.9200.500260 Dispatching Inter 6,325 6,900 7,108 7,038 (70)
055.9200.520000 Supplies 40 70 4,200 4,284 84
055.9200.550000 Advertisement & Promotion - - 1,000 1,000 -
055.9200.550022 Natural Gas Transportation Costs 2,012,097 2,083,726 2,104,806 2,613,082 508,276
055.9200.560010 Utilities - IT 12,912 12,820 10,000 5,000 (5,000)
055.9200.590000 Repair & Maintenance - - 10,848 - (10,848)
055.9200.590110 Repair & Maintenance IT - - - - -
055.9200.593200 Professional Services - Legal - - 350,000 350,000 -
055.9200.595200 Professional Services - Technical - 119,905 - - -
055.9200.596200 Professional Services - Other 213,499 297,671 326,940 348,547 21,607
055.9200.596500 Travel 411 - 9,996 10,196 200
055.9200.596550 Membership Dues - - 2,000 2,000 -
055.9200.596600 Books & Publications - - 2,004 2,044 40
055.9200.596700 Training 5,917 1,595 9,996 10,196 200
055.9200.596706 Electric Rebate Program - - - - -
TOTAL SUPPLIES/SERVICES 109,959,359 131,630,543 141,732,214 119,098,405 (22,633,809)
TOTAL EXPENDITURES 110,945,641$ 132,441,004$ 143,270,512$ 120,561,101$ (22,709,411)$
143 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9200 - RESOURCE PLANNING
SUPPLIES & SERVICES
2022-2023
Account No. 500150 - Energy
Detailed FY2022 FY2023
Name Description Budget Budget
1 MGS MGS Energy Payment (PPTA)3,254,700$ -$
2 Palo Verde Palo Verde variable cost component 722,176 643,230
3 Hoover Hoover Energy Cost- CES Credit 244,724 244,724
4 MGS Heat Rate Bonus MGS Heat Rate Bonus 360,000 -
5 WSPP Purchase Market Purchase / Balance of Load 24,763,011 32,041,674
6 CAISO ISO MISC Charges 2,604,979 2,314,185
31,949,590$ 35,243,813$
Account No. 500154 - Renewable Energy Credit
Detailed FY2022 FY2023
Description Budget Budget
1 Renewable Contracts /WSPP Purchase
Renewable Energy less CAISO Credits - includes $2M per Reso No. 2012-97
RPS pass-through 7,955,935$ 4,298,921$
7,955,935$ 4,298,921$
Account No. 500160 - Natural Gas Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 Malburg Generating Station, Gas Retail Gas purchases for MGS and H. Gonzales Turbine, Gas Retail 20,389,727$ 28,973,551$
2 Retail Gas Gas purchases for Gas Retail 7,375,755 11,819,152
27,765,482$ 40,792,703$
Account No. 500162 - Biomethane Fuel
Detailed FY2022 FY2023
Description Amount Amount
1 Element Markets/ Clean Energy Biomethane Fuel 3,613,594$ -$
3,613,594$ -$
Account No. 500163 - Greenhouse Gas Cost
Detailed FY2022 FY2023
Description Budget Budget
1 MGS / Imported Energy Greenhouse Gas Cost 4,374,771$ 6,601,148$
4,374,771$ 6,601,148$
144 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9200 - RESOURCE PLANNING
SUPPLIES & SERVICES
2022-2023
Account No. 500170 - Transmission Firm
Detailed FY2022 FY2023
Name Description Budget Budget
1 CAISO Transmission Access Charge 13,652,115$ 20,819,809$
2 SCE Mead-Laguna Bell 1,516,320 1,539,064
3 SCE Victorville-Lugo-Vernon 641,520 688,305
4 SCE Laguna-Bell Interconnection 296,028 300,468
5 LADWP Adelanto to Midpoint VV-Lugo 265,064 265,064
6 SCE SCE Added Facilities Charge (MGS RTU, Tri-Gas) -Interconection 10,200 10,404
7 Cal-PX Cal-Px wind-up cost 15,129 -
16,396,376$ 23,623,114$
Account No. 500180 - Capacity
Detailed FY2022 FY2023
Name Description Budget Budget
1 MGS MGS Capacity Payment (PPTA)45,218,169$ -$
2 Hoover Hoover Capacity Cost-CES Credit 354,468 350,544
3 Palo Verde Palo Verde Capacity (minimum cost)3,084,000 2,820,000
4 SCPPA SCPPA - Project stabilization Fund 100,000 120,000
48,756,637$ 3,290,544$
Account No. 500190 - Ancillary Services
Detailed FY2022 FY2023
Description Budget Budget
1 CAISO Spinning Reserve, non-spinning reserve, regulation up, regulation down,
replacement reserve 745,878$ 927,155$
745,878$ 927,155$
Account No. 500210 - Grid Management Charges
Detailed FY2022 FY2023
Name Description Budget Budget
1 CAISO CAISO GRID MANAGEMENT CHARGE 806,826$ 822,963$
806,826$ 822,963$
Account No. 500240 - Ferc Filing Charges
Detailed FY2022 FY2023
Name Description Budget Budget
1 CAISO ISO - NERC/WECC FEES 141,821$ 144,657$
141,821$ 144,657$
145 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9200 - RESOURCE PLANNING
SUPPLIES & SERVICES
2022-2023
Account No. 500260 - Dispatching Inter
Detailed FY2022 FY2023
Name Description Budget Budget
1 DWP Scheduling & Dispatching Fee -DWP and SCE Interconnections 7,108$ 7,038$
7,108$ 7,038$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Staples Department Supplies and Services
General purchases from staples for pens, pecils,binders,paper clips, writing
pads, markers, etc.4,200$ 4,284$
4,200$ 4,284$
Account No. 550000 - Advertisement & Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 Newspaper Advertisement (Rates, TRBAA, etc.)1,000$ 1,000$
1,000$ 1,000$
Account No. 560010 - Utilities IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 AT&T One Net Telecommunication Charges 5,000$ 5,000$
2 AT&T Business Telecommunication Charges 5,000
10,000$ 5,000$
Account No. 550022 - Natural Gas Transportation Cost
Detailed FY2022 FY2023
Name Description Budget Budget
1 SoCal Gas Company Gas Transportation, MGS, and Gas Transportation, H. Gonzales Units, Retail
sales 2,104,806$ 2,613,082$
2,104,806$ 2,613,082$
Account No. 593200- Legal
Detailed FY2022 FY2023
Name Description Budget Budget
1 Specialized Legal Services Legal Services 350,000$ 350,000$
350,000$ 350,000$
146 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 9200 - RESOURCE PLANNING
SUPPLIES & SERVICES
2022-2023
Account No. 590000 - Repair & Maintenance
Detailed FY2022 FY2023
Description Budget Budget
1 City of Vernon City allocated cost 10,848$
10,848$ -$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 ICE ICE 15,453$ 15,762$
2 S&P Market Analysis - SCPPA Project - 10,000
3 NGI NGI 8,160 8,323
4 Open Access Open Access Technology 10,137 10,340
5 Settlecore Settlement service software 126,710 134,313
6 Stancil recording device service 4,896 4,994
7 SCPPA Charges Various SCPPA Services 161,584 164,816
326,940$ 348,547$
Account No. 596500 - Travel
Event FY2022 FY2023
Type Name Budget Budget
1 CEC/CAISO/SCPPA CEC Workshops, ISO, SCPPA, CMUA, Hoover 9,996$ 10,196$
9,996$ 10,196$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various Membership Dues 2,000$ 2,000$
2,000$ 2,000$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 NGI Service, technical books Books and Publications 2,004$ 2,044$
2,004$ 2,044$
Account No. 596700 - Training
Detailed FY2022 FY2023
Type Description Budget Budget
1 CAISO/SCPPA Training (Gas and Power Trading, ISO Market design)9,996$ 10,196$
9,996$ 10,196$
147 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
055.7200 ENERGY MANAGEMENT
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES (58,013)$ -$ -$ 128,242$ 128,242$
EXPENSES:
SALARIES 39,728$ 42,514$ 170,658$ 213,272$ 42,614$
BENEFITS 13,048 14,085 87,215 116,485 29,270
SUPPLIES/SERVICES 687,684 438,744 1,615,000 1,905,000 290,000
TOTAL EXPENSES 740,460$ 495,343$ 1,872,873$ 2,234,757$ 361,884$
- - - - -
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Business & Account Supervisor 0.50 35,912$ 39,220$ 42,416$ 63,139$ 20,723$
Integrated Resources Manger 0.10 - - 128,242 19,326 (108,916)
1.00 - - 130,807 130,807
-
Overtime - - - - -
Payout (vacation and sick excess hours)- - - - -
Stand-by - - - - -
DEPARTMENT TOTALS 1.60 35,912$ 39,220$ 170,658$ 213,272$ 42,614$
Utilities Programs Specialist
148 of 167
CITY OF VERNON
Fund 055 Department 7200 - Light & Power Fund - Energy Management Department
Budget Detail
2022-2023
DEPARTMENT:
055.7200 ENERGY MANAGEMENT
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES:
055.7200.450035 Solar Rebate (58,013)$ - -$ -$
055.7200.600910 Other Income - - - 128,242 128,242$
(58,013)$ -$ -$ 128,242$ 128,242$
SALARIES
055.7200.501010 Salaries - Regular 30,345$ 32,756 163,589$ 206,061$ 42,472$
055.7200.501012 Salaries - Premiums 9,383 9,758 7,069 7,211 142
39,728 42,514 170,658 213,272 42,614
BENEFITS
055.7200.502020 Retirement 9,849$ 10,852 58,236$ 82,872$ 24,636$
055.7200.502030 Insurance Premiums - Medical 2,631 2,624 26,504 30,521 4,017
055.7200.502060 FICA Taxes 569 608 2,475 3,092 617
13,048 14,085 87,215 116,485 29,270
SUPPLIES/SERVICES
055.7200.520000 Supplies 49$ 41 15,000$ 205,000$ 190,000$
055.7200.596200 Professional Services - Other - - 100,000 100,000 -
055.7200.596702 Public Benefit Program Rebate 687,635 438,703 1,500,000 1,600,000 100,000
TOTAL SUPPLIES/SERVICES 687,684 438,744 1,615,000 1,905,000 290,000
TOTAL EXPENDITURES 740,460$ 495,343$ 1,872,873$ 2,234,757$ 361,884$
149 of 167
CITY OF VERNON
FUND 055 - LIGHT & POWER
DEPARTMENT 7200 - ENERGY MANAGEMENT
SUPPLIES & SERVICES
2022-2023
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Various
Customer Marketing Outeach Supplies -VPU making a effort to promote EE programsGreen
power & EV rate. Plus Online billing-paperless. Plus Branding for EV chargers/EV wraps
(customers farmer john, city fleet) signage for 2 public charging stations 15,000$ 205,000$
15,000$ 205,000$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 Energy Audits Vendor for Energy audits-Supports Public Benefits Programs- Res.#7511 Assembly Bill
(AB1890)
Requires COV to offer energy audits free of charge per request by customer having most
interest for the fiscal year
100,000$ 100,000$
100,000$ 100,000$
Account No. 596702 - Public Benefit Program Rebate
Detailed FY2022 FY2023
Name Description Budget Budget
1 Customer EE Incentives This offers customers rebates for replacement for lighting, motors & energy efficient
equipment. This program is very popular with customers and the demand is very high. This
supports COV Public Benefits Programs Res.#7511 Assembly Bill (AB1890)600,000$ 400,000$
2 VPU EV Charger Program Offer VPU customers EV Charger units & installation and part of short & long term VPU
strategic plan-AB1890 Res.#7511 & Back up Generateors well sites 900,000 1,200,000
3 Batter Storage Support CAISO curtailments- back up to support city’s water booster system 1,000,000
4 Demand Response Installation of automation relay – tie to SCADA 20,000
1,500,000$ 1,600,000$
150 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
056.5600 GAS UTILITY
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 14,313,841$ 16,159,474$ 13,473,584$ 19,152,739$ 5,679,155$
EXPENSES:
SALARIES 579,975$ 595,755$ 709,907$ 760,510$ 50,603$
BENEFITS 485,098 554,184 323,197 356,229 33,032
SUPPLIES/SERVICES - - 12,176,787 18,902,973 6,726,186
TOTAL EXPENSES 1,065,073$ 1,149,939$ 13,209,891$ 20,019,712$ 6,809,821$
CAPITAL -$ -$ 1,025,000$ 615,000$ (410,000)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Gas Systems Specialist 2.00 253,284$ 365,997$ 271,209$ 276,594$ 5,385$
Gas Systems Superintendent 1.00 168,440 175,194 180,450 184,058 3,608
Gas Systems Technician 2.00 105,107 109,254 211,248 207,858 (3,390)
Overtime 5,000 5,000 1,000 10,000 9,000
Payout (vacation and sick excess hours)700 - - - -
Stand-by 45,000 45,000 46,000 82,000 36,000
DEPARTMENT TOTALS 5.00 577,531$ 700,445$ 709,907$ 760,510$ 50,603$
151 of 167
CITY OF VERNON
Fund 056 Department 5600 - Gas Fund - Gas Utility Department
Budget Detail
2022-2023
DEPARTMENT:
056.5600 GAS UTILITY
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES
056.5600.450020 Natural Gas Sales (wholesale)-$ (197)$ -$ -$
056.5600.450022 Transportation Charges - Retail 2,755,545 2,830,999 2,826,829 2,807,266 (19,563)
056.5600.450024 Commodity Admin Fee - - 63,600 64,232 632
056.5600.450026 Natural Gas Sales - COV Retail 7,474,412 8,993,507 7,049,575 11,819,152 4,769,577
056.5600.450028 Natural Gas Sales - Prepaid/SMUD Wholesa 1,289,722 1,175,323 - - -
056.5600.450101 Monthly Customer Charge 95,423 94,418 82,000 95,128 13,128
056.5600.450105 Customer Connection Charge - - 300,000 - (300,000)
056.5600.600910 Other Income 1,402 122 - -
056.5600.610110 Investment Income 53,144 5,334 - -
056.5610.450030 ARB Freely Allocated Allowance Sales 795,594 928,127 999,894 1,368,922 369,028
056.5610.450032 CA Greenhouse Gas Surcharge 1,848,598 2,131,841 2,151,686 2,998,039 846,353
TOTAL REVENUES 14,313,841$ 16,159,474$ 13,473,584$ 19,152,739$ 5,679,155$
SALARIES
056.5600.501010 Salaries - Regular 504,182$ 519,723$ 632,415$ 637,484$ 5,069$
056.5600.501012 Salaries - Premiums 74,911 75,926 76,492 113,026 36,534
056.5600.501020 Salaries - O.T.882 106 1,000 10,000 9,000
TOTAL SALARIES 579,975 595,755 709,907 760,510 50,603
BENEFITS
056.5600.502020 Retirement 396,223$ 472,389$ 213,970$ 258,270$ 44,300$
056.5600.502030 Insurance Premiums - Medical 80,787 73,471 98,933 86,932 (12,001)
056.5600.502060 FICA Taxes 8,088 8,324 10,294 11,027 733
TOTAL BENEFITS 485,098 554,184 323,197 356,229 33,032
SUPPLIES/SERVICES
056.5600.500160 Natural Gas Expense - Physical Purchases 6,730,330$ 8,808,841$ 7,049,575$ 11,819,152$ 4,769,577$
056.5600.500167 Natural Gas Expense - PrePay - 76,020 -
056.5600.500230 Generation Expense 47,044 56,642 120,000 120,000 -
056.5600.520000 Supplies 46,336 66,469 183,000 273,000 90,000
056.5600.530030 Bad Debt Expense - 13,474 -
056.5600.540000 Uniforms 7,110 5,221 10,133 10,133 -
056.5600.550022 Natural Gas Transportation Costs 727,128 1,022,471 636,269 1,145,823 509,554
056.5600.560000 Utilities 374 736 -
056.5600.560010 Utilities - IT 10,941 10,834 12,938 12,938 -
056.5600.570000 Vehicle Expense 6,379 3,732 20,000 10,000 (10,000)
056.5600.590000 Repairs & Maintenance 88,997 68,339 99,000 129,000 30,000
056.5600.593200 Professional Services - Legal - - 15,000 15,000 -
056.5600.595200 Professional Services - Technical 12,238 212,456 538,500 420,000 (118,500)
056.5600.596200 Professional Services - Other 44,123 43,070 126,500 86,500 (40,000)
056.5600.596500 Travel 1,674 357 -
056.5600.596600 Books & Publications 1,490 1,411 - 20,000 20,000
056.5600.596700 Employee Development & Training 17,562 46,088 110,000 140,000 30,000
056.5600.596706 VPU Credit Program 509,493 576,436 - - -
056.5600.790100 Operating Transfer Out - - 222,978 222,978 -
056.5610.596702 Greenhouse Gas Admin/Rebates 81,062 - 999,894 1,368,922 369,028
056.5610.596710 Greenhouse Gas to Air Resources Board 1,498,650 2,681,704 2,033,000 3,109,527 1,076,527
TOTAL SUPPLIES/SERVICES - - 12,176,787 18,902,973 6,726,186
TOTAL EXPENDITURES 1,065,073$ 1,149,939$ 13,209,891$ 20,019,712$ 6,809,821$
CAPITAL
056.5600.900000 Capital Outlays -$ -$ 1,025,000$ 615,000$ (410,000)$
TOTAL CAPITAL -$ -$ 1,025,000$ 615,000$ (410,000)$
152 of 167
CITY OF VERNON
FUND 056 - GAS
DEPARTMENT 5600 - GAS
SUPPLIES & SERVICES
2022-2023
Account No. 500230 - Generation Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 AQMD CA Air Resources Board Annual Fee 120,000$ 120,000$
120,000$ 120,000$
Account No. 520000 - Supplies
Detailed FY2022 FY2022
Name Description Budget Budget
1 TBD Safety Equipment for Street Application 5,000$ 10,000$
2 Home Depot Necessary tools for warehouse 15,000 15,000
3 City Garage Various Supplies 1,000 1,000
4 Various Supply Vendors Service and meter installation supplies: concrete, regulators, valves, pipes 125,000 150,000
5 TBD Street Traffic Control Safety - Signage 10,000 10,000
6 Health Consultants DPIR 12,000 12,000
7 Health Consultants Ordorator 5,000 -
8 TBD 2-pipe locators 10,000 -
9 Health Consultants 6 Cone Mobil Unit & Installation 25,000
10 TBD Steel Plates/trench and shoring - 50,000
183,000$ 273,000$
Account No. 540000 - Uniforms
Detailed FY2022 FY2022
Name Description Budget Budget
1 To be bid Flame Resistant Uniform 4,600$ 4,600$
2 To be bid Flame Resistant Rain Gear 4,133 4,133
3 Teamsters & Shoeteria Safety Toe Work Boot 1,400 1,400
10,133$ 10,133$
153 of 167
CITY OF VERNON
FUND 056 - GAS
DEPARTMENT 5600 - GAS
SUPPLIES & SERVICES
2022-2023
Account No. 560010 - Utilities IT
Detailed FY2022 FY2022
Name Description Budget Budget
1 AT&T Minimax units: # of customers x $20/mo x 12 mo/yr 6,000$ 6,000$
2 Verizon Wireless Telecommunication Charges 1,529 1,529
3 AT&T CalNet2 Telecommunication Charges 4,409 4,409
4 COV IT Network Cabinet 1,000 1,000
12,938$ 12,938$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2022
Name Description Budget Budget
1 City Vehicle Vehicle gas usage & maintenance service. Safety upgrades to vehicles.20,000$ 10,000$
20,000$ 10,000$
Account No. 590000 - Repair & Maintenance
Detailed FY2022 FY2022
Name Description Budget Budget
1 TBD Distribution Valve Project 15,000$ 15,000$
2 Advanced Batteries Systems General Supplies 3,000 3,000
3 to be bid Reg Station SCADA upgrade 10,000 20,000
4 Gas Division Railroad/Transmission Markers 15,000 10,000
5 TBD Garage door for warehouse 15,000 -
6 Cambell Valve Valve Maintenance on Valves for 10" and Regulator Station 20,000
7 To be bid if necessary General Building remove falling tile, drywall and paint ceiling.20,000 30,000
8 TBD Painting Steel Service (CP)Farmer John 20,000 30,000
9 Craig Welding & Supplies General Supplies 1,000 1,000
99,000$ 129,000$
154 of 167
CITY OF VERNON
FUND 056 - GAS
DEPARTMENT 5600 - GAS
SUPPLIES & SERVICES
2022-2023
Account No. 593200 - Professional Services Legal
Detailed FY2022 FY2022
Name Description Budget Budget
1 Legal Gas Fund Legal Services 15,000$ 15,000$
15,000$ 15,000$
Account No. 595200 - Professional Services Technical
Detailed FY2022 FY2022
Name Description Budget Budget
1 FarWest FarWest for Cathodic Protection Annual Survey of 10" and Power Plant 5,000$ 5,000$
2 AM Ortega Natural Gas Construction & Repair Support 300,000 250,000
3 To be bid GIS Service (license & device) for USA Dig Alert 10,000 10,000
4 Energy World Net OQ Platform 3,500 5,000
5 NewGen Financial Services & Business Development 150,000 100,000
6 Bob Tyner PHMSA Support and Expertise 20,000 30,000
7 TBD Pressure Communication Platform Regulator Stations 50,000 20,000
538,500$ 420,000$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2022
Name Description Budget Budget
1 TBD Janitorial Services 18,000$ 18,000$
2 NewGen Cost of Service Study and Rate Design 50,000 -
3 TBD Engineering services to produce Detailed Plans for Major System Modifications 40,000 40,000
4 Dewey Pest Control Pest and Rodent 2,500 2,500
5 Security Network Inc.Security System Services OE Clark 1,000 1,000
6 Brad Bean or TBD System Modeling 15,000 25,000
126,500$ 86,500$
155 of 167
CITY OF VERNON
FUND 056 - GAS
DEPARTMENT 5600 - GAS
SUPPLIES & SERVICES
2022-2023
Account No. 596600 - Books & Publications
Detailed FY2022 FY2022
Name Description Budget Budget
1 TBD Public Awareness Publication - Newspaper Periodicals -$ 10,000$
2 To be bid Customer Outreach Promotional Materials - 10,000
-$ 20,000$
Account No. 596700 - Training
Detailed FY2022 FY2022
Name Description Budget Budget
1 TBD Simulation Training Facility and Equipment 45,000$ 50,000$
2 FLIR IR Camera Training 10,000 10,000
3 Heath Consultants Training DPIR/ODORATOR 5,000 5,000
4 PGE/SWG Training 15,000 50,000
5 TBD Gas Training-Video 20,000 10,000
6 P&F Training /Certifications / Operator Qualification 10,000 5,000
7 FarWest CP Training 5,000
8 TBD Industry Conferences 5,000 5,000
110,000$ 140,000$
Account No. 790100 - Operating Transfer Out
Detailed FY2022 FY2022
Name Description Budget Budget
1 Salaries Salaries: 50%customer relations manager & 100% utility program specialist 222,978$ 222,978$
222,978$ 222,978$
156 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
020.1084 WATER
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES 9,974,458$ 10,748,354$ 11,256,300$ 11,155,000$ (201,300)$
EXPENSES:
SALARIES 1,515,752$ 1,477,620$ 1,498,484$ 1,504,008$ 5,524$
BENEFITS 1,160,915 1,003,607 735,672 837,659 101,987
SUPPLIES/SERVICES 6,334,196 6,631,318 8,113,295 7,732,675 (385,620)
TOTAL EXPENSES 9,010,863$ 9,112,545$ 10,347,451$ 10,074,342$ (278,109)$
CAPITAL
REVENUES -$ -$ 8,660,259$ 6,600,000$ (2,060,259)$
EXPENDITURES -$ -$ 9,410,259$ 8,584,315$ (825,944)$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Assistant Civil Engineer - Public Utilities - 176,301$ 192,363$ 207,887$ -$ (207,887)$
Civil Engineer - Public Utilities 2.00 - - - 263,514 263,514
Electric Operations Supervisor 0.05 30,248 8,760 35,056 9,203 (25,853)
Electric Operator (5)0.30 52,540 39,280 40,456 41,264 808
Meter Reader 2.00 65,183 71,030 73,110 137,459 64,349
Meter Reader, Lead - 89,888 93,424 96,175 - (96,175)
Utilities Dispatcher (5)0.60 107,650 114,977 94,772 97,577 2,805
Utilities Dispatcher, Senior 0.15 - 18,706 25,750 25,072 (678)
Utilities Operations Manager - 25,266 27,593 - - -
Water Foreman - 125,589 - - - -
Water Maintenance Worker 3.00 280,761 291,986 146,790 212,639 65,849
Water Maintenance Worker, Lead 1.00 - 80,258 98,175 106,631 8,456
Water Maintenance Worker, Senior 4.00 347,523 369,772 452,526 373,224 (79,302)
Water Superintendent 1.00 119,707 130,732 141,387 151,425 10,038
Overtime 63,000 63,000 63,000 63,000 -
Payout (vacation and sick excess hours)12,500 8,888 18,400 18,000 (400)
Stand-by 15,000 15,000 5,000 5,000 -
DEPARTMENT TOTALS 14.10 1,511,156$ 1,525,769$ 1,498,484$ 1,504,008$ 5,524$
157 of 167
CITY OF VERNON
Fund 020 Department 1084 - Water Fund - Water Department
Budget Detail
2022-2023
DEPARTMENT:
020.1084 WATER
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Actuals
as of 1/31/22
Forecast
6/30/22
%
Used
Budget
2022-23
Increase/
(Decrease)
REVENUES
020.1084.431000 Rents 100,000$
020.1084.450040 Water Sales 9,445,987$ 10,033,974 10,217,500$ 5,115,393$ 9,950,000$ 97.38%10,090,000$ (127,500)$
020.1084.450045 Water - Recycled - 563,908 591,000 282,316 591,000 100.00%598,000 7,000
020.1084.450110 Fire Service 29,832 6,827 75,000 1,385 5,000 6.67%5,000 (70,000)
020.1084.450121 Construction Revenue 453,722 128,900 358,000 828 358,000 100.00%350,000 (8,000)
020.1084.450122 Installation Charge 1,800 2,500 1,900 1,600 2,000 105.26%2,000 100
020.1084.450330 Damaged Property 1,400 5,585 2,900 4,938 5,500 189.66%5,000 2,100
020.1084.600910 Other Income - - - 1,106 1,106 0.00%-
020.1084.610110 Investment Income 41,717 6,660 10,000 1,555 5,000 50.00%5,000 (5,000)
TOTAL REVENUES 9,974,458$ 10,748,354$ 11,256,300$ 5,409,121$ 10,917,606$ 96.99%11,155,000$ (201,300)$
EXPENSES:
SALARIES
020.1084.501010 Salaries - Regular 1,320,176$ 1,287,908 1,333,401$ 684,948$ 1,167,462$ 87.56%1,363,425$ 30,024$
020.1084.501012 Salaries - Premiums 139,052 137,837 102,083 61,976 119,414 116.98%77,583 (24,500)
020.1084.501020 Salaries - O.T.56,525 51,876 63,000 22,214 35,657 56.60%63,000 -
1,515,752 1,477,620 1,498,484 769,139 1,322,533 88.26%1,504,008 5,524
BENEFITS
020.1084.502020 Retirement 888,714$ 745,270 489,948$ 264,517$ 389,881$ 79.58%592,954$ 103,006$
020.1084.502030 Insurance Premiums - Medical 250,593 237,500 223,996 117,660 203,434 90.82%222,897 (1,099)
020.1084.502060 FICA Taxes 21,608 20,837 21,728 10,947 18,828 86.65%21,808 80
020.1084.502080 Claims Expenditure - Worker's Comp - - - - - 0.00%- -
1,160,915 1,003,607 735,672 393,125 612,143 83.21%837,659 101,987
SUPPLIES/SERVICES
020.1084.500110 Pumped Water 2,230,226$ 2,475,373 2,931,000$ 1,146,481$ 2,419,600$ 82.55%2,776,900$ (154,100)$
020.1084.500130 Purchased Water 1,252,054 944,181 737,000 209,095 715,000 97.01%458,500 (278,500)
020.1084.500140 Water Treatment 47,547 50,975 35,500 28,174 55,000 154.93%75,000 39,500
020.1084.520000 Supplies 141,484 463,902 196,500 87,655 196,500 100.00%353,500 157,000
020.1084.530030 Bad Debt Expense 19,287 25,953 43,000 - 43,000 100.00%43,000 -
020.1084.540000 Uniforms 8,215 9,341 15,000 3,510 15,000 100.00%17,500 2,500
020.1084.550000 Advertisement/Promotion 977 527 7,600 434 1,500 19.74%7,000 (600)
020.1084.560000 Utilities 1,079,942 1,084,929 1,315,800 631,677 1,315,800 100.00%1,382,100 66,300
020.1084.570000 Vehicle Expense 55,168 80,725 100,700 28,614 100,700 100.00%100,800 100
020.1084.590000 Repairs & Maintenance 55,540 41,564 868,600 77,601 450,000 51.81%796,900 (71,700)
020.1084.592010 Bond Fees - 2,545 - - 5,000 5,000
020.1084.593200 Professional Services - Legal 921 376 10,000 - 4,000 40.00%10,000 -
020.1084.595200 Professional Services - Technical 426,780 248,449 228,000 43,573 150,000 65.79%189,000 (39,000)
020.1084.596200 Professional Services - Other 30,781 11,584 11,950 2,726 11,950 100.00%12,350 400
020.1084.596500 Travel 18 - 5,000 - 2,000 40.00%10,000 5,000
020.1084.596550 Membership Dues 10,961 9,343 14,435 4,226 14,435 100.00%13,700 (735)
020.1084.596600 Books & Publications - - 700 - 500 71.43%500 (200)
020.1084.596700 Employee Development & Training 3,024 9,006 15,000 2,607 10,000 66.67%33,000 18,000
020.1084.596706 VPU Credit Program 296,488 139 - 10 - 0.00%- -
020.1084.599800 General City Administrative Service Exp 586,500 598,230 610,000 610,000 610,000 100.00%622,200 12,200
020.1084.760005 Bond Principal Retirement - - 379,535 240,000 240,000 63.24%250,000 (129,535)
020.1084.760010 Bond Interest Paid 88,284 574,178 587,975 296,988 587,975 100.00%575,725 (12,250)
6,334,196 6,631,318 8,113,295 3,413,370 6,947,960 85.64%7,732,675 (385,620)
TOTAL EXPENSES 9,010,863$ 9,112,545$ 10,347,451$ 4,575,634$ 8,882,636$ 85.84%10,074,342$ (278,109)$
158 of 167
CITY OF VERNON
Fund 020 Department 1084 - Water Fund - Water Department
Budget Detail
2022-2023
DEPARTMENT:
020.1084 WATER
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Actuals
as of 1/31/22
Forecast
6/30/22
%
Used
Budget
2022-23
Increase/
(Decrease)
CAPITAL
REVENUES
020.1084.600105 Bond Proceeds -$ -$ 8,660,259$ -$ 4,000,000$ 46.19%6,600,000$ (2,060,259)$
- - 8,660,259 - 4,000,000 46.19%6,600,000 (2,060,259)
CAPITAL
EXPENDITURES
020.1084.840000 Capital Equipment - Auto -$ - 750,000$ -$ 750,000$ 100.00%185,000$ (565,000)$
020.1084.850000 Capital Equipment - Nonauto - - - - - 0.00%-
020.1084.900000 Capital Outlay - - 8,660,259 2,582,035 5,500,000 63.51%8,399,315 (260,944)
-$ -$ 9,410,259$ 2,582,035$ 6,250,000$ 66.42%8,584,315$ (825,944)$
159 of 167
CITY OF VERNON
FUND 020 - WATER FUND
DEPARTMENT 1084 - WATER
2022-2023
Account No. 500110 - Pumped Water
Detailed FY2022 FY2023
Name Description Budget Budget
1 Water Replenishment District (WRD)Replenishment assessment 2,917,000$ 2,764,000$
2 Central Basin Watermaster - Admin Body Watermaster Service 7,500 8,900
3 Central Basin Watermaster - Water Rights Panel Watermaster Service 6,500 4,000
2,931,000$ 2,776,900$
Account No. 500130 - Purchased Water
Detailed FY2022 FY2023
Name Description Budget Budget
1 Central Basin Municipal Water District (CBMWD) - Potable Water purchase 400,000$ 115,000$
2 Central Basin Municipal Water District (CBMWD) - Recycled Water purchase 337,000 343,500
737,000$ 458,500$
Account No. 500140 - Water Treatment
Detailed FY2022 FY2023
Name Description Budget Budget
1 Sodium Hypochlorite Water Treatment - Chlorine 35,500$ 75,000$
35,500$ 75,000$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Inventory Inventory consumption 70,000$ 200,000$
2 Catalina Pacific Concrete Concrete 20,000 25,000
3 Robertson Conrete Concrete 15,000 20,000
4 Vulcan Materials Company (Security Paving?)Asphalt & crush base used in construction 20,000 25,000
5 Hanson Aggregate Gravel Sand and Rock 2,500 3,500
6 Ferguson Water Parts and Hardware 11,500 13,000
8 Home Depot Credit Services Supplies used in daily operations and construction 13,500 15,000
9 LB Johnson Hardware Building Materials and Hardware 5,000 6,000
10 Plumbing And Industrial Plumbing Hardware and Supplies 10,000 11,000
11 McMaster-Carr Supplies Co.Building Materials, Hardware and Electrical Supplies 5,000 6,000
12 Current Wholesale Electric Electrical Supplies 20,000 25,000
13 Grainger Building hardware & supplies 2,000 2,000
14 Stapes, Officemax, HomeDepot, Etc.General Supplies 2,000 2,000
196,500$ 353,500$
Account No. 530030 - Bad Debt Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 Required Budgeted Expense Bad Debt Expense - Per audited Financial Report 43,000$ 43,000$
43,000$ 43,000$
160 of 167
CITY OF VERNON
FUND 020 - WATER FUND
DEPARTMENT 1084 - WATER
2022-2023
Account No. 540000 - Uniforms
Detailed FY2022 FY2023
Name Description Budget Budget
1 Uniforms Uniforms (Cintas and PPE)15,000$ 17,500$
15,000$ 17,500$
Account No. 550000 - Advertisement/Promotion
Detailed 2,022 FY2023
Name Description FY2022 Budget
1 Consumer Confidence Report CCR graphics, printing, and ,mailing 600$ 500$
2 Planet Bids Web-based bidding platform 4,000 5,000
3 Newspaper Publications Notices Inviting Bids 3,000 1,500
7,600$ 7,000$
Account No. 560000 - Utilities
Detailed FY2022 FY2023
Name Description Budget Budget
1 Electricity Interdepartmental Utilities 1,300,000$ 1,326,000$
2 Fiber Optics Interdepartmental Utilities - Scheduled to go live on new water
SCADA system
12,000 52,200$
3 Natural Gas Utilities 3,800 3,900$
1,315,800$ 1,382,100$
Account No. 570000 - Vehicle Expense
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Garage Garage Work Orders 75,000$ 75,000$
2 City Fueling Station Gas Usage 25,000 25,000$
3 Car Wash Services Washing city vehicles 700 800$
100,700$ 100,800$
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 Craig Welding Welding Services 2,000$ 2,000$
2 Dale'S Transport Trucking Wash 600 700
3 Economy Rentals Equipment and Tools 900 1,000
4 United Rental Northwest Equipment and Tools 600 700
5 On-Call Motor Repair Motor repair services 50,000 50,000
6 On-Call Pump Repair & Maint RFP TBD Pump repair services 600,000 600,000
7 Pump Check Efficiency Testing 7,500 8,500
8 Grounds Maintenance Grounds maintenance for water facilities 5,000 6,000
9 Athrone Portable restrooms, etc.2,000 3,000
10 RFP On-Call Water Main Repair 100,000 -
11 RFP On-Call Storm Water Pump 100,000 125,000
868,600$ 796,900$
Account No. 593200 - Professional Services Legal
Detailed FY2022 FY2023
Name Description Budget Budget
1 Unforeseen Legal Services Water Fund Specialized Legal Services / Potential Litigation regarding
PFAS and CBMWD
10,000$ 10,000$
10,000$ 10,000$
161 of 167
CITY OF VERNON
FUND 020 - WATER FUND
DEPARTMENT 1084 - WATER
2022-2023
Account No. 595200 - Professional Services - Technical
Detailed FY2022 FY2023
Name Description Budget Budget
1 RFP Hydrogeological Services 75,000$ 40,000$
2 RFP Meter Asset Management - Customer meter testing and calibration 5,000 100,000
3 Health Department Cross-Connection Survey - to be bid 100,000 -
4 Central Basin Water Association Lab testing/Title 22 28,000 29,000
5 Analytical Lab (Clinical and Weck)Water sampling Weekly 20,000 20,000
6 TBD Data Reclassification and Customer classification cleanup -
228,000$ 189,000$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 SWRCB Division Of Drinking Water Water system fees 8,300$ 7,300$
2 SCAQMD Emission & Registration Fees 2,100 3,000
3 Underground Service Alert Dig alerts 1,500 2,000
4 BNSF Railway Company Rental lease 50 50
11,950$ 12,350$
Account No. 596500 - Travel
Detailed FY2022 FY2023
Name Description Budget Budget
1 City Employees Mileage, airfare, food, parking, lodging 5,000$ 10,000$
5,000$ 10,000$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 Southeast Water Coalition (Downey)Membership 5,000$ 5,000$
2 Central Basin Water Association Membership 4,100 4,200
3 California Municipal Utilities Association (CMUA)Membership 2,000 2,000
4 AWWA California Nevada Section Membership 3,000 2,100
5 Gateway Management Authority (GWMA)Membership - -
6 American Water Works Association Membership 335 400
14,435$ 13,700$
Account No. 596600 - Books & Publications
Detailed FY2022 FY2023
Name Description Budget Budget
1 Publications - AWWA, NGWA Training manuals, DVDs, and books 700$ 500$
700$ 500$
Account No. 596700 - Training
Detailed FY2022 FY2023
Name Description Budget Budget
1 AWWA, Fred Pryor, State Water Board Certifications, H2OKnow, EHS and other
water training organizations
Training Classes, Workshops, Seminars, Conferences, and
Certifications
15,000$ 33,000$
15,000$ 33,000$
162 of 167
CITY OF VERNON
FUND 020 - WATER FUND
DEPARTMENT 1084 - WATER
2022-2023
Account No. 596706 - VPU Credit Program
Detailed 2,022 FY2022
Name Description Budget Budget
1 City of Vernon Measure R Credit -$ -$
-$ -$
Account No. 599800 - Overhead Allocation
Detailed FY2022 FY2023
Name Description Budget Budget
1 City of Vernon Overhead Allocation 610,000$ 622,200$
610,000$ 622,200$
Account No. 840000 - Capital Equipment and Vehicles
Detailed FY2022 FY2023
Name Description Budget Budget
1 Vehicle Ford Lightning EV Truck replaces 1041 diesel truck 75,000$
2 Vehicle Construction Truck Ford F450 CNG 510,000 -
3 Vehicle Crane Body Knuckle Boom Truck CNG 150,000 -
4 Vehicle Ford F-550 Dump Truck CNG 90,000 -
5 Vehicle Ford Lightning EV Truck meter reading 60,000
6 Vehicle Administration Vehicle replacement - 50,000
750,000$ 185,000$
Account No.900000 - Capital Outlay
Detailed FY2022 FY2023
Name Description Budget Budget
1 Project Emergency Generators (Wells 11&PP1, 20, and W21)700,000 900,000
2 Project Upgrades for Reservoir 1 (automation)45,000
3 Project Well 5 Destruction - 43,000
4 Project Well 22 Wellhead Equipment 1,855,150 2,863,175
5 Project Emergency Generator on Well 22 300,000 300,000
6 Project Elevated Tank Upgrades (automation)21,250 16,250
7 Project Reservoir/PH Demolition at Well 20 450,000
8 Project Systemwide Soil Corrosivity Assessment 150,000
9 Project Major Booster Maintenance (B1-2, 3-1, 3-4)150,000
10 Project Design & Construction Repairs for Reservoirs at PP3 1,442,751
11 Project Small Diameter High Resolution In-Pipe Testing - -
12 Project Design & Construction Repairs for Reservoirs at PP2 1,842,751 2,336,625
13 Project AMI Program 100,000 100,000
14 Project Electrical Upgrades 744,587 573,860
15 Project SCADA 208,770 506,405
16 Project AMR Meter Modules 10,000
17 Project Main Replacement Program 600,000
7,860,259$ 8,399,315$
163 of 167
CITY OF VERNON
Budget Summary
2022-2023
DEPARTMENT:
057.1057 FIBER OPTICS
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
TOTAL REVENUES 604,251$ 481,329$ 460,000$ 578,400$ 118,400$
EXPENSES:
SALARIES 26,504$ 55,338$ 9,947$ 10,146$ 199$
BENEFITS 7,315 46,361 5,867 6,718 851
SUPPLIES/SERVICES 227,086 275,624 272,686 401,500 128,814
TOTAL EXPENSES 260,905$ 377,322$ 288,500$ 418,364$ 129,864$
CAPITAL -$ -$ 50,000$ 175,000$ 125,000$
Salaries Salaries Salaries Salaries Increase
EMPLOYEE TITLE FTE Budget Budget Budget Proposed (Decrease)
Computer Aided Drafting Technician - 14,038$ -$ -$ -$ -$
Electric Engineering Technician - - 16,052 - - -
Utilities Engineering Manager 0.05 53,059 55,186 9,947 10,146 199
Overtime 1,000 1,000 - - -
Payout (vacation and sick excess hours)- - - - -
Stand-by - - - - -
DEPARTMENT TOTALS 0.05 68,097$ 72,238$ 9,947$ 10,146$ 199$
164 of 167
DEPARTMENT:
057.1057 FIBER OPTICS
A B B-A
Actuals
2019-20
Actuals
2020-21
Budget
2021-22
Budget
2022-23
Increase/
(Decrease)
REVENUES
057.1057.450050 Internet Access Services 404,269$ 274,486 280,000$ 275,000$ (5,000)$
057.1057.450051 Dark Fiber Revenue 92,032 102,238 90,000 105,000 15,000
057.1057.450060 Internet Access Services - Gov't Rate 24,600 24,600 20,000 24,600 4,600
057.1057.450061 Dark Fiber Revenue - Gov't Rate 79,920 73,126 70,000 173,800 103,800
057.1057.466900 Miscellaneous Revenues - 6,456 - - -
057.1057.469300 Reserve Applied - - - - -
057.1057.610110 Investment Income 3,430 422 - - -
TOTAL REVENUES 604,251$ 481,329$ 460,000$ 578,400$ 118,400$
SALARIES
057.1057.501010 Salaries - Regular 25,233$ 55,338 9,947$ 10,146$ 199$
057.1057.501012 Salaries - Premiums 1,272 - - - -
057.1057.501020 Salaries - O.T.- - - - -
TOTAL SALARIES 26,504 55,338 9,947 10,146 199
BENEFITS
057.1057.502020 Retirement 4,341$ 42,450 5,170$ 6,025$ 855$
057.1057.502030 Insurance Premiums - Medical 2,591 3,108 553 546 (7)
057.1057.502060 FICA Taxes 384 802 144 147 3
TOTAL BENEFITS 7,315 46,361 5,867 6,718 851
SUPPLIES/SERVICES
057.1057.500173 Transport Services - Telecommunication 101,701$ 106,966 135,000$ 105,000$ (30,000)$
057.1057.520000 Supplies 2,406 18,630 37,500 - (37,500)
057.1057.520010 Supplies - IT 16,550 - 10,000 - (10,000)
057.1057.530030 Bad Debt Expense 12,248 1,725 1,000 1,000 -
057.1057.550000 Advertisement/Promotion 2,765 610 5,000 5,000 -
057.1057.570000 Vehicle Expense - - - - -
057.1057.590000 Repairs & Maintenance 510 64,338 - 205,000 205,000
057.1057.596200 Professional Services - Other 90,907 82,856 82,000 85,000 3,000
057.1057.596500 Travel - - - - -
057.1057.596550 Membership Dues - 500 1,000 500 (500)
057.1057.596600 Books & Publications - - - - -
057.1057.596700 Employee Development & Training - - - - -
057.1057.596706 VPU Credit Program - - 1,186 - (1,186)
TOTAL SUPPLIES/SERVICE 227,086 275,624 272,686 401,500 128,814
TOTAL EXPENDITURES 260,905$ 377,322$ 288,500$ 418,364$ 129,864$
CAPITAL
057.1057.860000 IT Equipment & Software -$ - -$ -$ -$
057.1057.900000 Capital Outlay - - 50,000 175,000 125,000
TOTAL CAPITAL -$ -$ 50,000$ 175,000$ 125,000$
2021-2022
Budget Detail
Fund 057 Department 1057 - Fiber Optic Fund - Fiber Optics Department
CITY OF VERNON
165 of 167
CITY OF VERNON
FUND 057 - FIBER OPTICS
DEPARTMENT 1057 - FIBER OPTICS
SUPPLIES & SERVICES
2021-2022
Account No. 500173 - Transportation Services Telecommunication
Detailed FY2022 FY2023
Name Description Budget Budget
1 Level 3/Centurylink Transportation charges 75,000$ 55,000$
2 Broadband Transportation charges 60,000 50,000
135,000$ 105,000$
Account No. 520000 - Supplies
Detailed FY2022 FY2023
Name Description Budget Budget
1 Home Depot Miscellaneous parts for construction 2,500$ -$
2 CSC Splice enclosures, patch panels 20,000
3 Graybar & CDW Fiber cables, patch cords 15,000
37,500$ -$
Account No. 520010 - Supplies - IT
Detailed FY2022 FY2023
Name Description Budget Budget
1 IT Equipment Routers, etc 10,000
10,000$ -$
Account No. 530030 - Bad Debt Expenses
Detailed FY2022 FY2023
Name Description Budget Budget
1 As required by Financial Audit Report Bad Debt Collection 1,000$ 1,000$
1,000$ 1,000$
Account No. 550000 - Advertisement & Promotion
Detailed FY2022 FY2023
Name Description Budget Budget
1 To be bid - Procurement Process
Advertising and promotional materials such as
flyers and mail inserts 5,000$ 5,000$
5,000$ 5,000$
166 of 167
CITY OF VERNON
FUND 057 - FIBER OPTICS
DEPARTMENT 1057 - FIBER OPTICS
SUPPLIES & SERVICES
2021-2022
Account No. 590000 - Repairs & Maintenance
Detailed FY2022 FY2023
Name Description Budget Budget
1 Petrelli
UPS Systems repairs and maintenance / Fiber
System maintance -$ 205,000$
-$ 205,000$
Account No. 596200 - Professional Services Other
Detailed FY2022 FY2023
Name Description Budget Budget
1 NOC System Network Operations -$
2 FUJITSU ISP Server Farm Maintenance Services 82,000 85,000
82,000$ 85,000$
Account No. 596550 - Membership Dues
Detailed FY2022 FY2023
Name Description Budget Budget
1 Telecom Annual membership dues 500$ -$
2 American Registry of Internet Numbering (ARIN)Annual membership dues 500 500
1,000$ 500$
Account No. 596706 - VPU Credit Program
Event FY2022 FY2023
Type Name Budget Budget
1 Measure R VPU Credit Program 1,186$
1,186$ -$
167 of 167
City Council Agenda Item Report
Submitted by: Sandra Dolson
Submitting Department: City Clerk
Meeting Date: April 19, 2022
SUBJECT
Approval of Minutes
Recommendation:
Approve the April 5, 2022 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. 20220405 City Council Minutes
MINUTES
VERNON CITY COUNCIL
REGULAR MEETING
TUESDAY, APRIL 5, 2022
COUNCIL CHAMBER, 4305 SANTA FE AVENUE
CALL TO ORDER
Mayor Ybarra called the meeting to order at 9:03 a.m.
FLAG SALUTE
Vernon Police Department Honor Guard presented the colors and Chief Sousa led the
Flag Salute.
ROLL CALL
PRESENT:
Melissa Ybarra, Mayor (via remote access)
William Davis, Mayor Pro Tem
Leticia Lopez, Council Member
Crystal Larios, Council Member
Judith Merlo, Council Member
STAFF PRESENT:
Carlos Fandino, City Administrator (via remote access)
Angela Kimmey, Deputy City Administrator
Zaynah Moussa, Interim City Attorney
Lisa Pope, City Clerk
Scott Williams, Finance Director
Fredrick Agyin, Health and Environmental Control Director
Michael Earl, Human Resources Director
Robert Sousa, Police Chief
Dan Wall, Public Works Director
Todd Dusenberry, Assistant Public Utilities General Manager
APPROVAL OF THE AGENDA
MOTION
Council Member Lopez moved and Council Member Merlo seconded a motion to
approve the agenda. The question was called and the motion carried unanimously.
PUBLIC COMMENT
None.
Regular City Council Meeting Minutes Page 2 of 6
April 5, 2022
PRESENTATIONS
1.Swearing-In Ceremony for New Police Officers in the Police Department
Recommendation: Administer the Oath of Office to Police Officers Alan Escarpe,
Brittany Gonzalez and Melissa Hernandez.
Police Chief Sousa presented the staff report and introduced new Police Officers
Alan Escarpe, Brittany Gonzalez, and Melissa Hernandez.
City Clerk Pope administered the Oath of Office.
RECESS
Mayor Ybarra called a recess at 9:15 a.m. The meeting reconvened at 9:20 a.m.
with all Council Members present.
2.Proclamation Declaring Sexual Assault Awareness Month and Denim Day
Recommendation: Proclaim the month of April 2022 as "Sexual Assault
Awareness Month" and Wednesday, April 27, 2022 as "Denim Day" in the City of
Vernon.
City Clerk Pope read the proclamation.
3.Proclamation Celebrating the 70th Anniversary of the Greater Los Angeles
County Vector Control District
Recommendation: Commend and honor the Greater Los Angeles County Vector
Control District on their 70th Anniversary Milestone.
City Clerk Pope read the proclamation.
4.City Administrator Report:
• New Business Welcome
• Partnerships to Aid Unhoused Population
• Clean California Grant for Vernon Park
• Utility in Southern California Public Power Association (SCPPA) Newsletter
• Vernon Job Fair
• Community Engagement
Recommendation: No action is required by City Council. This is a presentation
only.
City Administrator Fandino presented the report.
PUBLIC HEARINGS
5.General Fee Schedule for Fiscal Year 2022-2023
Recommendation: Adopt Resolution No. 2022-06 approving and adopting the
General Fee Schedule for Fiscal Year (FY) 2022-2023.
Regular City Council Meeting Minutes Page 3 of 6
April 5, 2022
Finance Director Williams presented the staff report.
Mayor Ybarra opened the public hearing. There being no speakers, Mayor Ybarra
closed the public hearing.
MOTION
Council Member Lopez moved and Council Member Larios seconded a motion to
adopt Resolution No. 2022-06 approving and adopting the General Fee Schedule
for Fiscal Year (FY) 2022-2023. The question was called and the motion carried
unanimously.
CONSENT CALENDAR
MOTION
Mayor Pro Tem Davis moved and Council Member Lopez seconded a motion to
approve the Consent Calendar. The question was called and the motion carried
unanimously.
The Consent Calendar consisted of the following items:
6.Approval of Minutes
Recommendation: Approve the March 15, 2022 Regular City Council meeting
minutes.
7.Conduct of Meetings via Teleconference Pursuant to Assembly Bill 361
Recommendation: Ratify the findings in Resolution No. 2021-36 authorizing
continued conduct of City Council and all other City legislative body meetings via
teleconference, in accordance with Assembly Bill 361 (AB 361), due to continued
public health and safety concerns caused by COVID-19.
8.Claims Against the City
Recommendation: Receive and file the claim submitted by Mayra A. Llamas in the
amount of $1,620.
9.Operating Account Warrant Register
Recommendation: Approve Operating Account Warrant Register No. 84, for the
period of February 27 through March 19, 2022, totaling $10,616,891.14 and
consisting of ratification of electronic payments totaling $9,706,845.77 and
ratification of the issuance of early checks totaling $910,045.37.
10.Public Works Department Monthly Report
Recommendation: Receive and file the February 2022 Building Report.
11.Recovered Organic Waste Product and Recycled-Content Paper
Procurement Policy
Recommendation: Adopt the Recovered Organic Waste Product and Recycled-
Content Paper Procurement Policy.
12.Agreements with the California Department of Transportation (CalTrans)
Recommendation: Adopt Resolution No. 2022-07 authorizing the Director of Public
Works to execute all Federal or State Grant Funding Agreements with the State of
California, acting by and through the Department of Transportation.
Regular City Council Meeting Minutes Page 4 of 6
April 5, 2022
13.Electrical Easement at 2340 East 52nd Street - Assessor’s Parcel Number
(APN) 6308-016-025
Recommendation: Accept the Electrical Easement and authorize the Mayor to
execute the Certificate of Acceptance for 2340 East 52nd Street (APN 6308-016-
025).
14.Services Agreement with YESCO LLC dba YESCO Signs LLC (Contract No.
CS-1425) for Vernon Gateway Arch Project
Recommendation: A. Find that the proposed action is categorically exempt under
the California Environmentally Quality Act (CEQA) in accordance with CEQA
Guidelines Section 15303, because the project consists of new construction of
limited small new facilities; and Section 15311, because the project only consists
of construction or placement of minor structures accessory to (appurtenant to)
existing commercial, industrial, or institutional facilities; B. Approve and authorize
the City Administrator to execute Services Agreement Contract CS-1425 with
YESCO LLC, dba YESCO Signs LLC in substantially the same form as submitted,
in an amount not-to-exceed $499,364.97 for the City of Vernon Gateway Arch
Project for a three-year term; and C. Authorize a contingency of $75,000 in the
event of an unexpected changed condition in the project and grant authority to the
City Administrator to issue Change Orders for an amount up to the contingency
amount, if necessary.
15.Vernon Rental Housing Policy
Recommendation: Adopt Resolution No. 2022-08 approving a Vernon Rental
Housing Policy for the Vernon Housing Commission and repealing Resolution No.
2011-175.
16.Construction Contract with Capital Industrial Coatings, LLC for the
Rehabilitation of Reservoirs 2-1, 2-2, and 2-3 Project
Recommendation: A. Find that the proposed action is categorically exempt from
California Environmental Quality Act (CEQA) review, in accordance with CEQA
Guidelines Section 15301, because the project consists of the maintenance, repair
or minor alteration of existing facilities and equipment and involves negligible or no
expansion of an existing use; B. Accept the bid from Capital Industrial Coatings,
LLC as the lowest responsive and responsible bidder and reject all other bids; C.
Approve and authorize the City Administrator to execute a Construction Contract
with Capital Industrial Coatings, LLC in substantially the same form as submitted,
in an amount not-to-exceed $2,033,308 for the Rehabilitation of Reservoirs 2-1, 2-
2, and 2-3; and D. Authorize a contingency amount of $200,000 in the event of
unforeseen changes in the project and grant authority to the City Administrator to
issue Change Orders for an amount up to the contingency amount, if necessary.
17.Payment and Blanket Purchase Contract with ABB, Inc.
Recommendation: A. Find that the proposed action is categorically exempt from
California Environmental Quality Act (CEQA) review, in accordance with CEQA
Guidelines § 15301, because the project consists of the maintenance, repair or
minor alteration of an existing facility and involves negligible or no expansion of an
existing use; B. Approve payment to ABB, Inc. for Invoice No. 7105433953, in the
amount of $340,716.69 for starting motor drive replacement parts; C. Find that the
best interests of the City are served by a direct award of a purchase contract to
ABB, Inc., without a competitive selection process pursuant to Section 3.32.110
Regular City Council Meeting Minutes Page 5 of 6
April 5, 2022
B.2 of the Vernon Municipal Code (VMC); and D. Authorize issuance of a blanket
Purchase Contract in an amount not-to-exceed $92,283.31 with ABB, Inc., subject
to City Attorney’s Office approval of terms and conditions, for the installation of a
starting motor drive and maintenance services needed at Malburg Generating
Station (MGS) for the remainder of fiscal year (FY) 2021-2022.
NEW BUSINESS
18.Amendments to Vernon Municipal Code Section 3.32.250 Emergency
Purchases
Recommendation: A. Introduce and conduct the first reading of Ordinance No.
1279 amending Section 3.32.250 of Title 3 Revenue and Finance of the Vernon
Municipal Code regarding emergency purchases; and B. Direct staff to schedule
second reading and adoption for the April 19, 2022 City Council meeting.
Finance Director Williams presented the staff report.
In response to Council questions, Interim City Attorney Moussa and Assistant
Public Utilities General Manager Dusenberry explained the reason for not capping
allowable purchase amounts; potential emergencies; and prudent process for
selecting vendors.
MOTION
Council Member Lopez moved and Mayor Pro Tem Davis seconded a motion to:
A. Introduce and conduct the first reading of Ordinance No. 1279 amending
Section 3.32.250 of Title 3 Revenue and Finance of the Vernon Municipal Code
regarding emergency purchases; and B. Direct staff to schedule second reading
and adoption for the April 19, 2022 City Council meeting The question was called
and the motion carried unanimously.
ORAL REPORTS
City Administrator Reports on Activities and other Announcements.
City Administrator Fandino provided follow-up information regarding the Bell Shelter
Agreement approved at the March 15, 2022 Council meeting. He announced Easter
Bunny Vernon Elementary Visit on April 7, 2022, National Clean Up Day in May, and
the Summer Kick-Off/Graduation Event in June.
City Council Reports on Activities (including AB 1234), Announcements, or
Directives to Staff.
Council Member Lopez reported on her attendance at the Independent Cities Association
Winter Seminar at a cost of $2,345.
RECESS
Mayor Ybarra recessed the meeting to Closed Session at 9:53 a.m.
Regular City Council Meeting Minutes Page 6 of 6
April 5, 2022
CLOSED SESSION
19.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION –
Significant exposure to litigation
Government Code Section 54956.9(d)(2) Number of potential cases: 1
20.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
Teresa Rodriguez v. City of Vernon
Los Angeles Superior Court Case No. 22STCV09515
21.PUBLIC EMPLOYMENT
Government Code Section 54957(b)(1) Title: City Attorney
RECONVENE
At 10:49 a.m., Mayor Ybarra adjourned Closed Session and reconvened the regular
meeting.
CLOSED SESSION REPORT
Interim City Attorney Moussa reported that the Council met in Closed Session, discussed
the items on the agenda, and took no reportable action.
ADJOURNMENT
Mayor Ybarra adjourned the meeting at 10:50 a.m.
______________________________
MELISSA YBARRA, Mayor
ATTEST:
_____________________________________
LISA POPE, City Clerk
(seal)
City Council Agenda Item Report
Submitted by: Sandra Dolson
Submitting Department: City Clerk
Meeting Date: April 19, 2022
SUBJECT
Claims Against the City
Recommendation:
Receive and file the claim submitted by Dustin Thomas Phillips in the amount of $18,000.
Background:
On April 7, 2022, the City received the following claim:
Name of Claimant - Dustin Thomas Phillips
Amount Demanded - $18,000
Pursuant to Municipal Code Section 2.32.040, the above information is listed on the City
Council agenda as soon after filing of the claim with the City as practical.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Dustin T. Phillips 20220407
.
2.
3
4-
5.
6.
7.
CLAIM FOR DAMAGES
TO PERSON OR PROPERTY
TO: CITY OF VERNON CITY COUNCIL
e a nt
Dustin Thomas Phillips
me less tma nt
RECEIVED
APR 7 2O2Z
CITY CLERK'S OFFICE
person
ome e ne UM er
90s-322-1285
Business one Number
INSTRUCTIONS
Claims for death, injury to person or to personal property must be filed not later
than six (6) months after the occurence. (Gov. Code Sec.91'12)
Claims for damages to realproperty must befiled not laterthan one ( l ) year
after the occunence. (cov. Code Sec.911 .2)
Read entire claim before filing-
See page 2 for diagram upon which to locate place of accident
This claim form must be signed on page 2 at bottom.
Attach separate shoots, if necessary, to give futt detaits. SIGN EACH SHE
Claim must be filed with City Clerk. (Gov.Code Sec. 915a)
n
685 Phoebe Street, Nipomo, CA93444
Business Address of Claimant
N/A
an
ity and
41
N/A
Give address to which you d esire notices or communications to be sent regarding this claim
685 Phoebe Street, Nipomo, CA 93444
How did DAMAGE or INJURY occur? Give full particutars.
While unsafely backing uP a Public Works utility vehicle (#1055) owned by the City of Vemon, a City of Vemon public Works
employee named Jesse Lee Blue, while acting within the scope of his employment with the City of Vemon, caused damage
to a trailer owned by Claimant. Trailer is a 2015 P.J. Trailer Manufacturing, lnc., Sumner, TX, VIN#:4ps862424F122a400.
For a full description of the accident, please see attached police report: CR2.1-2O71.
When did DAMAGE or INJURY occur? Give full particulars, date, time of day, etc.:
December 11,2021 at 21 :14 hours.
approximate, give slreet names and address and measurements from landmarks:
The collision occurred on private property: 3375 Fruitland Ave.- a private parking lot used by the LA County
Fire Department. Nearest City street is E. 50th Street which is 223 feet away from the site of the accident.
What particularACT oTOMISSION doyou claim causedthe inj
causingthe injury or damage, if known:
ury ordamage? Givenamesof Cityemployees, if any,
cjty Employee Jesse Lee Blue backed his city owned 2016 Ford F-250 supercab (License #'1475538; vlN#:
1FT7X2BT6G_E_C-23556).into claimanfs kailer atthe address.listed above whilst conducling a routine a check of W.ell site #i9.
Police report cR21-2071, attached to lhis claim form for reference, cites Califomia Vehiclrcode section 22'l06 asthe traffic law
that was broken by Mr. Blue if it were not on private property.
Where did DAMAGE oTINJURY occur? Describe fully, and locateondiag ram on reverse side ofthissheet, where
What DAMAGE or INJ URIES do you claim resulted? Give full extent of injuries or damages claimed:
lill mt t€ guaEntesd by Fb( Auto C6nbr.
WhatAMOUNTdo you claim ofeach
computation:
item of injury ordamage asofdate of presentation of this claim, giving basisof
Give ESTIMATED AMOUNT as farasknownyou claim
basisof computation
on account of each item of prospective injury ordamage, giving
lo Ef6.!nc.d mod6t l. fow f.6t short r. Tho tlirer ct i5 $16.500. Ctaimnr ts Equ.6tns Sr8,oOO b cov$ br. ti@n;. lnd doator,6s.
RESERVE FOR FILING STAMP
CLAIM No.
$18,000
Computation is based upon replacement cost of trailer that was damaged by the City of Vemon.
you at the time so, provide name of insurance company, policy numbers and amount of insurance
payments received:
N/A
Expenditures made on account of accident or lnjury: (Date - ltem)
None to date
(Amount)
Name and address of Witnesses, Doctors and Hospitals:
Vernon City Police Officer: B. Redona, Officer lD: 660.
4305 South Santa Fe Avenue, Vernon CA 90058
READCAREFULLY
For all accident claims place on following diagram names of streets, including North, East. South, and West: indicate place
of accident by "X" and by showing house numbers or distances to street comers.
lf City Vehicle was lnvolved, designate by letter'A" location of City vehicle when you first saw it, and by "B" location of yourself
or your vehicle when you first saw City vehicle; location of City vehicle at time of accident by "A-1 " and location of yourself or your
vehicle at the time of accident by "8 1" and the point of lmpact by "X."
NOTE:lf diagrams do not fit the situation, attach hereto a proper diagram signed by claimant.
FOR AUT LE ACCIDENTS
ER
OEWATK
cunE
under u that theof
CUFB
includi attachme is true and correct.
Date:
3t1212022Dustin Thomas Phillips
THEIR CLAIM
on giving
toClaimant:
or person
pEN.oODESEC.T2). cl-AIMSMUSTBEFILEDWITHGITYCLERK(GoV.CODESEC.915a).STATELAwPRoVIDESTHATIFYOUARENOTNOTIFIEDOF
7nW
IX AUTO SAN LUIS OBISPO
251 TANK FARM ROAD, SAN LUIS OBISPO, CA
93401
Phone: (805) 541-9063
Preliminary Estimate
Worldle ID:
FederalID:
Resah Number:
BAR:
r2dt7923
35-2566406
202464896
29511
Customer: Geissman, Chad
Insured:
Type of Loss:
Point of Impact:
Geissman, Chad
05 Rear
Written By: Luis Padreco
Policy #:
Date of Lo6s:
Inspecdon Location:
FU AUTO SAN LUTS OBISPO
251 TANK FARM ROAD
SAN LUIS OBISPO, CA 93,(}1
Repair Facility
(805) 541-9053 Business
Claim #:
Days to Repair: 0
Insurance Companyl
OJSTOMER PAY
Owner:
Geissman, Chad
(8os) 620-2166 Cell
VEHICLE
2015 7X24 PJ TRAIER (EQ{JIPMENT TRAITER) BTACK
4P5862424Fr22a400VIN;
License:
State:
Interior Color:
Exterior Color:
Production Date:
BLACK
3l2OLs
Mileage In:
Mlleage Out:
Condition:
Vehide Out;
Job #:
U4l2O22l|49:3L AM 434259 Page 1
GOa,traroi:l
Preliminary Estimate
Customer: Geissman, Chad
2015 7X24 Pl TRAIITR (EQUIPMENT rRAIL-ER) B|-ACK
Llne Oper Labor PaintDescriptionPart l{umber Qty Eftended
Pdce I
0.4
2.0
3.0
3.0
1.0
1
1
1
1
1
I
1
#
*
#
#
#
*
#
#
#
#
#
#
#
#
#
1
2
3
4
s
5
7
8
9
10
11
Repl
R&I
R&I
Repl
Repl
Repl
Repl
R&I
Repl
R&I
R&I
R&I
Repl
Repl
Repl
3.0
0.5
0.5
6.0
Front Jack
Rear Ramps
Rear Lamps
3/16" Diamond Phte 96'X 32"
wi$ break - Long ways at 6'
3" Cmssmember{
2" X 3/8" Fht bars
1.5X3/8 Bar
Floor lumber
7000 lb TX Tandem Axle HD Kit -
14K Capacity (Ane Sedes)
Rt & Lt Jack
10 Anchors
Front Wood Cargo Bay
Front Wood Cargo Bay-Lt Side
Reflector tape
OJtting & welding materiab,
Seahnt, Misc. wiring parts
SKU: 07DAHDfi855 I 2,$A.74
373.00
350.00
350.00
10.0
12,0
7.0
1.5
8.0
350.00
1 1,394.50
L2
13
!4
15
100.00
49.6s
80.00
0.5
8.0
0.5
2,O
0.5
SUBTOTA1S 5,215.89 60.0 9.4
ESTIMATE TOTALS
Category Basis Rate Cost I
Parts
Body Labor
Paint Labor
Paint Supplies
60.0 hrs @
9.4 hrs @
9.4 hrs @
$ 135.00 /hr
$ 95.00 /hr
$ 66.00 /hr
5,21s.89
8,100.00
893,00
620.40
Subtobl L4,829.29
Sales Tax $ s,836.29 @ 8.7500 9o 510.58
Grand Total 15,339.97
Deductible 0.00
CUSTOMER PAY o.o0
II{SURANCE PAY 15,339.97
214120221L49i.3! AM 434259 Page 2
Preliminary Estimate
Customer: Geissman, Ghad
2015 7X24 PJ IRAITfR (EQUIPMENT TRAI| .ER) BLACK
Power of Attorney:
I hereby authorize Fix Auto - San Luis Obispo to repair damage to my vehicle. I also understand that my vehicle will
be driven by those employed by Fix Auto - san Luis Obispo as necessary. I understand that payment in full will be
due upon release of the vehicle including additional supplement damage charges. An express mechanids lien is
hereby acknowledged on above vehicle to secure the amount of repairs hereto. After the said vehicle is repaired all
damaged parts will be junked. I authorize all supplement payments go directly to Fix Auto - San Luis Obispo to act as
power of attorney to sign insurance checks to pay for damages to the above vehicle.
Authorized By: Date:
Notice: Due to unforseen circumstances we can only estimate, not promise a completion date for repairs.
Initial here:
FOR YoUR PROTECION CAUFORNIA LAW REQUIRES THE FOII-OWING TO APPEAR ON THIS FORM: ANY PERSON
WHO KNOMNGLY PRESEIITS FALSE OR FRAUDULENT CLAIM FOR THE PAYMENT OF A LOSS IS GUILTY OF A CRIME
AND MAY BE SUB]ECT TO FINES AND CONFINEMENT IN STATE PRISON.
THE FOLLOWING IS A UST OF ABBREVI,ATIONS OR SYMBOI.S THAT MAY BE USED TO DESCRIBE WORK TO BE
DONE OR PARTS TO BE REPAIRED OR REPI-ACED:
MOTOR ABBREVIATIONS/SYMBOLS: D=DISCONTINUED PARI A=APPROXMATE PRICE. I-ABOR TYPES: B=BODY
LABOR, D=DIAGNOSTIC, E=ELECTRICAI F=FRAME, G=GLASS, M=MECHANICAI" p=pAINT LABO&
S=STRUCTURAL, T=TAGD MISCELLANEOUq X=NON TNGD MISCELLANEOUS. CCC ONE: ADJ=ADJACENT,
ALGN=ALIGN, Ay'M=AFTERMARKET, BI.ND=BLEND, CAPA=CERTIFIED AUTOMOTTVE PARTS ASSOCIATIoN,
D&R=DISCONNECTAND RECONNECT, EST=ESTIMATE, DO. PRICE=UNIT PRICE MULTIPLIED BYTHE QUANTNY,
INCL=INCLUDED, MISC=MISCEILANEOUS, NAGS=NATIONAL AurO GI.ASS SPECIFICATIONS, NON-ADJ=NON
ADJACENT, o/H=ovERHAUl. oP=oPERATION, No=uNE NUMBE& QTY=QUAtrrITy, RECOND=RECONDITTON,
REFN=REFINISH, REPL=REPLACE, R&I=REMOVE AND INSTALL R&R=REMOVE AND REPI.ACE, RPR=REPAI&
RT=RIGHT, SECT=SECTIONT SUBL=SUBLETT LT=tfFT, WO=WTHOUT, W_=WITH/_ SYMBOLS: #=MANUAL LINE
ENTRY, *=OTHER [IE..MOTORS DATABASE INFORMATION WAS CHANGED], **=DATABASE UNE WITH
AFTERMARKET, N=NOTES ATTACHED TO LINE. OPT OEM=ORIGINAL EQUIPMENT MANUFACTURER PARTS EMIER
OMONAI.IY SOURCED OR OfiERwISE PROVIDED WTTH SOME UNIQUE PRIONG OR DISCOUIIT,
"CI.,RE TIME' MEANS THE LENGTH OF TIME THAT, PER THE ADHESIVE MANUFACTURE& THE WINDSHIELD
ADHESIVE NEEDS TO CURE UNTIL THE MNDSHIELD CAN PROPERLY FUNCNON AS A SAFETY DEVICE PURSUANT
TO THE FEDERAL MOTOR VEHICLE SAFETY STANDARDS AND THE VEHICLE MANUFACTURER'S SPECXFICATIONS.
CCC ONE Estimating - A product of CCC Intelligent SeMces Inc.
lhe following is a list of abbreviations that may be used in CCC ONE Estimating that are not part of the MOTOR
CRASH ESTIMANNG GI.JIDE:
BAR=Bureau of Automotive Repair. EPA=Environmental Protection Agency, NHTSA= National Highway
Transportation and Safety Adminisbation. PDR=Paintless Dent Repair. VlN=Vehide Identification Number.
44l2O22llt49t3l AM 434259 Page 3
reliminary Estimate
VIN:
License:
State:
Intedor Color:
Exterior Crlor:
Productbn Date:
Customel: Geissman, Chad
2OI5 7X24 PJ TRAIER (EQUIPMENT TRAII.TR) BI.ACK
2015 7X24 PJ TRAII.ER (EQUIPMENT TRAILER) BTACK
4P5W2424FL228400
ALTERNATE PARTS USAGE
BLACK
3/2015
l,4ileage In:
Mileage Out:
Crndition:
Vehicle Out:
Job #:
Altemate Part Type Selection Method # OfTlmes otified Of
Avallable Parts
Afterma*et
Optional OEM
Reconditioned
Recycled
Automatically Ust
Automatically Ust
Autornatically Llst
N/A
0
0
0
0
0
0
0
0
44120221l:49131 AM 434259 Page 4
# Of Parts Selected
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Phone: (209) 668-3340
4401 N. Golden State Boulevard
Turlock, CA 95382
Email: bonandertrailer@gmai!.com
BonandGl
2022 PJ Trailers 6 in. Channel Super-Wide (86) Car / Racing Trailer
Stock#: 11814PJ VIN#: 4P51C2521N1374089 Year:2022
Manufacturer: PJ Trailers Width: 102'or 8'6' Length: 240" or 2O'
GVWR: 9990 Color: BLACK # Axles: 2
URL: https://www.bonandertrailer.com/all-inventory?stock=1 1 81 4PJ
Price $ 16,499.00
Description
blackwood pro outer deck
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Tullocl, CA 95382
(209) 668-3:140
Stock No! 1181jlPJ
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City Council Agenda Item Report
Submitted by: Lisa Pope
Submitting Department: City Clerk
Meeting Date: April 19, 2022
SUBJECT
Amendment to Vernon Municipal Code Section 3.32.250 Emergency Purchases
Recommendation:
Conduct second reading and adopt Ordinance No. 1279 amending Section 3.32.250 of Title 3
Revenue and Finance of the Vernon Municipal Code regarding emergency purchases.
Background:
At the April 5, 2022 Regular City Council Meeting, the Vernon City Council introduced and
conducted first reading of Ordinance No. 1279 which amends Section 3.32.250 of Title 3
Revenue and Finance of the Vernon Municipal Code regarding emergency purchases.
The ordinance summary was posted on the City's website on April 5, 2022, and will be
published pursuant to legal requirements.
Staff requests the City Council conduct second reading, and adopt Ordinance No. 1279.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Ordinance No. 1279
ORDINANCE NO. 1279
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON
AMENDING SECTION 3.32.250 OF TITLE 3 REVENUE AND FINANCE
OF THE VERNON MUNICIPAL CODE REGARDING EMERGENCY
PURCHASES
SECTION 1. Recitals.
A.The City of Vernon (City) is a municipal corporation and a chartered city of the
State of California organized and existing under its Charter and the Constitution of
the State of California.
B.On December 18, 2012, the City Council adopted Ordinance No. 1200, as
amended by Ordinance No. 1221 on May 20, 2014, amending Article IV of Chapter
2 of the Vernon Municipal Code, to enact the “Competitive Bidding and Purchasing
Ordinance”.
C.The City Council desires to amend Section 3.32.250 of the Vernon Municipal Code
regarding emergency purchases to enable the City Administrator to authorize
emergency work to restore or prevent an imminent and unforeseen failure of utility
service.
THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct and are a substantial part of this ordinance.
SECTION 3. Section 3.32.250 of Title 3 of the Vernon Municipal Code is hereby
amended to read as follows:
“3.32.250 Emergency purchases.
In case of an actual emergency which requires immediate purchase of supplies,
equipment, or services to address an immediate and unforeseen risk to health, life,
property or the environment, or for emergency work to restore or prevent an imminent
and unforeseen failure of utility service, the City Administrator may secure, without
competitive bidding, at the lowest obtainable price, any supplies, equipment, or services
regardless of the amount of the expenditure. A full report of the circumstances of any
such emergency purchase shall be filed with the City Council within 30 days of the
expenditure.”
SECTION 4. Any provision of the Vernon Municipal Code or appendices thereto
inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies
and no further, is repealed or modified to that extent necessary to affect the provisions of
this Ordinance.
Ordinance No. 1279
Page 2 of 2
_______________________
SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or
portion thereof, of this Ordinance is declared by a court of competent jurisdiction to be
unconstitutional or otherwise invalid, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would have
adopted this Ordinance, and each section, subsection, paragraph, sentence, clause,
phrase, or portion thereof, irrespective of the fact that any one or more sections,
subsections, paragraphs, sentences, clauses, phrases, or portions thereof, be declared
invalid or unconstitutional. To this end, the provisions of this Ordinance are declared to
be severable.
SECTION 6. The City Clerk shall certify the adoption and publish this ordinance as
required by law.
APPROVED AND ADOPTED this 19th day of April, 2022.
_____________________________
MELISSA YBARRA, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
___________________________
ZAYNAH N. MOUSSA,
Interim City Attorney
City Council Agenda Item Report
Submitted by: Efren Peregrina
Submitting Department: Finance/Treasury
Meeting Date: April 19, 2022
SUBJECT
City Payroll Warrant Register
Recommendation:
Approve City Payroll Warrant Register No. 790, for the period of March 1 through March 31,
2022, totaling $2,614,799.17 and consisting of ratification of direct deposits, checks and taxes
totaling $1,704,566.00 and ratification of checks and electronic fund transfers (EFT) for payroll
related disbursements totaling $910,233.17 paid through operating bank account.
Background:
Section 2.32.060 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 City Payroll Account Warrant Register No. 790
covering claims and demands presented during the period of March 1 through March 31,
2022, drawn, or to be drawn, from East West Bank for City Council approval.
Fiscal Impact:
The fiscal impact of approving City Payroll Warrant Register No. 790, totals $2,614,799.17.
The Finance Department has determined that sufficient funds to pay such claims/demands,
are available in the respective accounts referenced on City Payroll Warrant Register No. 790.
Attachments:
1. City Payroll Account Warrant Register No. 790
Raquel Franco | 4/12/2022 9:18 AMPAYROLL WARRANT REGISTERCity of VernonNo.790Month ofMarch 2022I hereby Certify: that claims or demands covered by the This is to certify that the claims or demandsabove listed warrants have been audited as to accuracycovered by the above listed warrants have beenand availability of funds for payments thereof; and thataudited by the City Council of the City of Vernonsaid claims or demands are accurate and that funds areand that all of said warrants are approved for pay-available for payments thereof.mentsScott A. WilliamsDATEDirector of Finance / City TreasurerDATEDate:Page 1 of 1Payroll Warrant Register Memo 2022 : Warrant4/12/2022
Payrolls reported for the month of March
02/13/2022 - 02/26/2022, Paydate 03/10/2022
02/27/2022 - 03/12/2022, Paydate 03/24/2022
03/10/2022 - 03/10/2022, Paydate 03/24/2022
Payment
Method Date Payment Description Amount
ACH 03/10/22 Net payroll, checks 13,227.05$
ACH 03/10/22 Net payroll, direct deposits 659,270.42
ACH 03/10/22 Payroll taxes 172,834.89
ACH 03/24/22 Net payroll, checks 8,104.65
ACH 03/24/22 Net payroll, direct deposits 669,747.35
ACH 03/24/22 Payroll taxes 174,562.90
ACH 03/24/22 Net payroll, direct deposits 4,701.53
ACH 03/24/22 Payroll taxes 2,117.21
Total net payroll and payroll taxes 1,704,566.00
12699 03/10/22 ICMARC 31,566.77
12698 03/10/22 IBEW Dues 3,130.63
12697 03/10/22 Vernon Police Officers' Benefit Association 1,861.16
12702 03/18/22 CalPERS 203,902.86
12703 03/25/22 California State Disbursement Unit 41.53
12711 03/10/22 Blue Shield of California 362,910.22
12712 03/10/22 Metlife - Group Benefits 28,665.36
12713 03/14/22 MES Vision 3,782.11
12714 03/25/22 AFLAC 12,224.60
12715 03/24/22 Mutual of Omaha 13,618.58
12716 03/25/22 Colonial 6,441.20
12706 03/24/22 ICMARC 31,573.62
12705 03/24/22 Teamsters Local 911 2,322.00
12704 03/24/22 Vernon Police Officers' Benefit Association 1,861.16
12709 03/25/22 CalPERS 206,289.84
12710 03/25/22 California State Disbursement Unit 41.53
Payroll related disbursements, paid through
Operating bank account 910,233.17
Total net payroll, taxes, and related disbursements 2,614,799.17$
Page 1 of 1
City Council Agenda Item Report
Submitted by: Efren Peregrina
Submitting Department: Finance/Treasury
Meeting Date: April 19, 2022
SUBJECT
Operating Account Warrant Register
Recommendation:
Approve Operating Account Warrant Register No. 85, for the period of March 20 through April
2, 2022, totaling $6,280,983.97 and consisting of ratification of electronic payments totaling
$4,559,693.50 and ratification of the issuance of early checks totaling $1,721,290.47.
Background:
Section 2.32.060 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. 85 covering
claims and demands presented during the period of March 20 through April 2, 2022, 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. 85, totals
$6,280,983.97. 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. 85.
Attachments:
1. Operating Account Warrant Register No. 85
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022I 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:________________________________________________________________________________________________________________________Printed: 4/12/2022 9:07:13AM4/12/2022
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.9000.595200 $ 13,135.50 Natural Gas Compliance Services 112728G2 INTEGRATED SOLUTIONS, LLC006899 ‐ 055.9000.595200 $ 1,727.25 Natural Gas Compliance Services 112729$ 14,862.7503/22/2022 12644055.9000.595200 $ 18,000.00 Annual Monitoring Fee~ P0397739MOODY'S INVESTORS SERVICE, INC002879 ‐ $ 18,000.0003/22/2022 12645011.1004.520000 $ 244.11 Postage 795838NDS006687 ‐ 011.1004.520000 $ 217.32 Postage 796938$ 461.4303/22/2022 12646055.7100.596200 $ 5,479.46 ResoluƟon Billing 0322SO CAL PUBLIC POWER AUTHORITY002517 ‐ 055.9000.596200 $ 13,781.50 ResoluƟon Billing 0322055.9000.596700 $ 1,201.00 ResoluƟon Billing 0322055.9200.596200 $ 8,685.38 ResoluƟon Billing 0322$ 29,147.3403/22/2022 12647055.9200.500160 $ 23,100.00 Natural Gas 02/22 84933CALPINE ENERGY SERVICES, LP002060 ‐ $ 23,100.0003/24/2022 12648011.1046.540000 $ 224.40 Uniforms 4113744621CINTAS CORPORATION005490 ‐ $ 224.4003/24/2022 12649Printed: 4/12/2022 9:07:13AMPage 1 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.9200.500160 $ 98,150.00 Natural Gas 02/22 105544CITADEL ENERGY MARKETING, LLC007262 ‐ $ 98,150.0003/24/2022 12650055.9200.500160 $ 51,650.00 Natural Gas 02/22 173637CONOCOPHILLIPS COMPANY005388 ‐ $ 51,650.0003/24/2022 12651055.9200.500160 $ 213,955.00 Natural Gas 02/22 5008182CRC MARKETING, INC007099 ‐ 055.9200.500160 $ 43,000.00 Natural Gas 02/22 5008204$ 256,955.0003/24/2022 12652055.9200.500170 $ 21,870.00 Electric Energy TransacƟons GA201180DEPARTMENT OF WATER & POWER002468 ‐ 055.9200.500260 $ 575.00 Electric Energy TransacƟons GA201180055.9200.500170 $ 21,870.00 Electric Energy TransacƟons GA201193055.9200.500260 $ 575.00 Electric Energy TransacƟons GA201193$ 44,890.0003/24/2022 12653055.9200.500160 $ 220,612.50 Natural Gas 02/22 2156422EDF TRADING NORTH AMERICA, LLC004116 ‐ $ 220,612.5003/24/2022 12654Printed: 4/12/2022 9:07:13AMPage 2 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE011.1048.520000 $ 55.80 Small Tools, Plumbing & Building 118825 011.0014915LB JOHNSON HARDWARE CO #1000804 ‐ 011.1048.520000 $ 27.36 Small Tools, Plumbing & Building 119166 011.0014915011.1049.520000 $ 63.31 Small Tools, Plumbing & Building 119233 011.0014915011.1049.520000 $ 9.84 Small Tools, Plumbing & Building 119344 011.0014915011.1049.520000 $ 19.69 Small Tools, Plumbing & Building 119611 011.0014915$ 176.0003/24/2022 12655055.9200.500160 $ 629,893.29 Natural Gas 02/22 GASI00166710MACQUARIE ENERGY, LLC006086 ‐ $ 629,893.2903/24/2022 12656011.1049.590000 $ 3,627.54 Landscape Maintenance 01/22 96395MARIPOSA LANDSCAPES, INC006422 ‐ $ 3,627.5403/24/2022 12657020.1084.900000 $ 445.97 Hardware Supplies~ 72354445 011.0014895MCMASTER‐CARR SUPPLY COMPANY001150 ‐ 020.1084.520000 $ 506.28 Hardware Supplies~ 72494982 011.0014895020.1084.900000 $ 223.14 Hardware Supplies~ 73161447 011.0014895056.5600.520000 $ 532.53 Hardware Supplies~ 73405533 056.0000641020.1084.900000 $ 13.03 Hardware Supplies~ 73475830 011.0014895020.1084.520000 $ 1,548.95 Hardware Supplies~ 73798681 011.0014895$ 3,269.9003/24/2022 12658055.9200.500160 $ 1,199,209.24 Natural Gas 02/22 3672720MERCURIA ENERGY AMERICA, LLC006262 ‐ $ 1,199,209.2403/24/2022 12659Printed: 4/12/2022 9:07:13AMPage 3 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.9200.500160 $ 20,300.00 Natural Gas 02/22 292847MIECO, LLC006318 ‐ $ 20,300.0003/24/2022 12660011.9019.590110 $ 4,100.00 GeoViewer Mobile for the iPAD & USA 15342 011.0015156NOBEL SYSTEMS, INC005709 ‐ $ 4,100.0003/24/2022 12661055.9200.500160 $ 43,000.00 Natural Gas 02/22 234662PACIFIC SUMMIT ENERGY, LLC005908 ‐ $ 43,000.0003/24/2022 12662055.9000.596200 $ 10,140.00 ConsultaƟon & Support Services VERNPVHFEBRUARY2022PORT CANAVERAL PWR CONSULTANTS002459 ‐ 055.9000.596200 $ 9,360.00 ConsultaƟon & Support Services VERNPVHJANUARY2022055.9000.596200 $ 4,290.00 ConsultaƟon & Support Services VERNPVHMARCH2022$ 23,790.0003/24/2022 12663055.9200.500154 $ 99,690.74 Puente Hills Landfill Gas Project PHL0322SO CAL PUBLIC POWER AUTHORITY002517 ‐ $ 99,690.7403/24/2022 12664055.9200.500180 $ 223,511.00 Minimum Cost 02/22 PV0322SO CAL PUBLIC POWER AUTHORITY002517 ‐ 055.9200.500150 $ 38,412.00 Variable Cost 02/22 PV0322055.122100 $ 10,000.00 PSF Cost PV0322$ 271,923.0003/24/2022 12665Printed: 4/12/2022 9:07:13AMPage 4 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.9200.550022 $ 168,443.12 ReservaƟon & Transmission Charges~ 030922THE GAS COMPANY001581 ‐ $ 168,443.1203/24/2022 12666055.9200.500160 $ 223,425.00 Natural Gas 02/22 106548TWIN EAGLE RESOURCES MGMT, LLC007225 ‐ $ 223,425.0003/24/2022 12667055.9200.500150 $ 225,691.80 IniƟal Charges 03/22 202203223154121271CALIFORNIA ISO002412 ‐ 055.9200.500190 $ 1,862.80 IniƟal Charges 03/22 202203223154121271055.9200.500210 $ 14,610.68 IniƟal Charges 03/22 202203223154121271055.9200.500170 $ ‐69.80 IniƟal Charges 03/22 202203223154121271055.9200.500150 $ ‐1,200.16 RecalculaƟon Charges 12/21 202203223154121271055.9200.500190 $ ‐613.52 RecalculaƟon Charges 12/21 202203223154121271055.9200.500170 $ 10,004.31 RecalculaƟon Charges 12/21 202203223154121271$ 250,286.1103/25/2022 12668Printed: 4/12/2022 9:07:13AMPage 5 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE020.1084.500140 $ 233.38 Sodium Hypochlorite SoluƟon 5569488WATERLINE TECHNOLOGIES, INC007110 ‐ 020.1084.500140 $ 231.53 Sodium Hypochlorite SoluƟon 5569489020.1084.500140 $ 240.79 Sodium Hypochlorite SoluƟon 5569491020.1084.500140 $ 185.22 Sodium Hypochlorite SoluƟon 5569494020.1084.500140 $ 255.60 Sodium Hypochlorite SoluƟon 5569495020.1084.500140 $ 92.61 Sodium Hypochlorite SoluƟon 5569496020.1084.500140 $ 1,065.02 Sodium Hypochlorite SoluƟon 5570397020.1084.500140 $ 116.07 Sodium Hypochlorite SoluƟon 5571215020.1084.500140 $ 236.29 Sodium Hypochlorite SoluƟon 5571217020.1084.500140 $ 286.03 Sodium Hypochlorite SoluƟon 5571218020.1084.500140 $ 306.76 Sodium Hypochlorite SoluƟon 5571219020.1084.500140 $ 126.43 Sodium Hypochlorite SoluƟon 5571220020.1084.500140 $ 190.69 Sodium Hypochlorite SoluƟon 5571221020.1084.500140 $ 1,131.17 Sodium Hypochlorite SoluƟon 5572176$ 4,697.5903/25/2022 12669011.1003.596200 $ 375.00 Storage Services 569015WILLIAMS DATA MANAGEMENT003584 ‐ 011.1003.596200 $ 375.00 Storage Services 571298011.1003.596200 $ 1,369.36 Storage Services 571798$ 2,119.3603/25/2022 12670011.120030 $ 40,731.88 Fuel~ 2218031 011.0015052MERRIMAC ENERGY GROUP000209 ‐ $ 40,731.8803/25/2022 12671Printed: 4/12/2022 9:07:13AMPage 6 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE011.1060.502070 $ 3,584.00 Unemployment Insurance Benefit Charge~ L1703791632EMPLOYMENT DEVELOPMENT DEPT001635 ‐ 011.1040.502070 $ 1,800.00 Unemployment Insurance Benefit Charge~ L1703791632011.1004.502070 $ 5,400.00 Unemployment Insurance Benefit Charge~ L1703791632011.1033.502070 $ 1,800.00 Unemployment Insurance Benefit Charge~ L1703791632011.1026.502070 $ 1,982.38 Unemployment Insurance Benefit Charge~ L1703791632011.1060.502070 $ ‐2,455.54 Federal CARES Act Credit L1703791632011.1040.502070 $ ‐1,233.25 Federal CARES Act Credit L1703791632011.1004.502070 $ ‐3,699.75 Federal CARES Act Credit L1703791632011.1033.502070 $ ‐1,233.25 Federal CARES Act Credit L1703791632011.1026.502070 $ ‐1,358.21 Federal CARES Act Credit L1703791632$ 4,586.3808/13/2021 12672011.1047.540000 $ 218.98 Uniforms 4114463764CINTAS CORPORATION005490 ‐ $ 218.9803/29/2022 12673011.1003.596300 $ 70.00 PublicaƟon Services B3561674DAILY JOURNAL CORPORATION000947 ‐ $ 70.0003/29/2022 12674055.9200.596200 $ 1,137.50 OTC Commission Adjustment 0222001688088ICE US OTC COMMODITY MARKETS,004500 ‐ 055.9200.596200 $ 112.50 Physical Gas 222001688006$ 1,250.0003/29/2022 12675Printed: 4/12/2022 9:07:13AMPage 7 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE011.1004.520000 $ 356.35 Postage Replenishment 798151NDS006687 ‐ $ 356.3503/29/2022 12676055.9200.500170 $ 24,669.00 Laguna Bell 03/22 7501379415SO CAL EDISON000059 ‐ 055.9200.500170 $ 187,200.00 Mead Laguna Bell 03/22 7501379416055.9200.500170 $ 79,200.00 Victorville Lugo Vernon 03/22 7501379454$ 291,069.0003/29/2022 12677055.9200.500160 $ 55,700.00 Natural Gas 02/22 202202GS027THE GAS COMPANY001581 ‐ $ 55,700.0003/29/2022 12678055.8100.596200 $ 122.54 Portable Restroom Service~ 11412864721UNITED SITE SERVICES OF CA003601 ‐ 055.8100.596200 $ 122.54 Portable Restroom Service~ 11412864722055.8100.596200 $ 79.50 Portable Restroom Service~ 11412889343055.8100.596200 $ 57.67 Portable Restroom Service~ 11412889372055.8100.596200 $ 549.31 Portable Restroom Service~ 11412902808055.8100.596200 $ 122.54 Portable Restroom Service~ 11412942791055.8100.596200 $ 228.54 Portable Restroom Service~ 11412942792$ 1,282.6403/29/2022 12679011.1049.590000 $ 3,487.00 Air CondiƟoner Maintenance 903115WESTERN ALLIED CORPORATION006120 ‐ $ 3,487.0003/29/2022 12680Printed: 4/12/2022 9:07:13AMPage 8 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE056.5600.590000 $ 2,060.85 Element Repair Kit~ IN15305 056.0000661A‐BEST INDUSTRIAL, INC004318 ‐ 056.5600.590000 $ 2,060.85 Element Repair Kit~ IN15305 056.0000661056.5600.590000 $ 61.42 Freight IN15305 056.0000661056.5600.590000 $ 391.56 Sales Tax 9.5% IN15305$ 4,574.6803/31/2022 12681011.1070.596200 $ 2,063.07 School Crossing Guard Services 76006ALL CITY MANAGEMENT SERVICES001490 ‐ $ 2,063.0703/31/2022 12682011.1004.596200 $ 62.78 SUTA Services~ INV06013802AVENU MUNISERVICES, LLC006722 ‐ 011.1004.596200 $ 1,416.18 SUTA Services~ INV06013803011.1004.595200 $ 3,750.00 UUT Fixed Fee~ INV06013849$ 5,228.9603/31/2022 12683055.9000.592010 $ 1,060.00 AdministraƟon Fee 2522443649BANK OF NEW YORK MELLON002533 ‐ 055.9000.592010 $ 1,060.00 AdministraƟon Fee 2522443650020.1084.592010 $ 2,400.00 Trustee Fee, DisseminaƟon Agent Fee, 2522455689$ 4,520.0003/31/2022 12684011.1003.550000 $ 490.00 PublicaƟon Services B3564565DAILY JOURNAL CORPORATION000947 ‐ $ 490.0003/31/2022 12685011.1024.593200 $ 169.70 Re: Los Angeles MS4 Permit PeƟƟon 236255RICHARDS, WATSON & GERSHON003900 ‐ $ 169.7003/31/2022 12686Printed: 4/12/2022 9:07:13AMPage 9 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE011.9019.520010 $ 12,145.50 Switch~ B14673793 011.0015101SHI INTERNATIONAL CORP005925 ‐ 011.9019.520010 $ 715.02 Enterprise License & Support~ B14673793 011.0015101011.9019.520010 $ 1,244.91 Sales Tax 10.25 B14673793011.9019.590110 $ 768.00 Veeam Backup for MicrosoŌ Office 365~ B14938730 011.0015172$ 14,873.4303/31/2022 12687020.1084.520000 $ 85.03 Portable Restroom Service~ 11412899528UNITED SITE SERVICES OF CA003601 ‐ $ 85.0303/31/2022 12688020.1084.520000 $ 17.96 Late Charge 341017 011.0014912VULCAN MATERIALS CO001695 ‐ 020.1084.520000 $ 16.42 Late Charge 350042 011.0014912$ 34.3803/31/2022 12689Printed: 4/12/2022 9:07:13AMPage 10 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.9200.500150 $ 362,884.03 IniƟal Charges 03/22 202203293154219674CALIFORNIA ISO002412 ‐ 055.9200.500170 $ 5,947.18 IniƟal Charges 03/22 202203293154219674055.9200.500190 $ 32,388.90 IniƟal Charges 03/22 202203293154219674055.9200.500210 $ 13,019.11 IniƟal Charges 03/22 202203293154219674055.9200.500150 $ ‐76.91 RecalculaƟon Charges 12/21 202203293154219674055.9200.500190 $ ‐752.95 RecalculaƟon Charges 12/21 202203293154219674055.9200.500170 $ 3,612.02 RecalculaƟon Charges 12/21 202203293154219674$ 417,021.3803/31/2022 12690011.1041.520000 $ 51.96 Period: 03/22 933312112(2)UPS001617 ‐ $ 51.9603/21/2022 12691011.1043.520000 $ 730.01 Small Tools & Plumbing Hardware~ 032122_MULTIPLE 011.0014991HOME DEPOT CREDIT SERVICES001552 ‐ 011.1048.520000 $ 1,216.50 Small Tools & Plumbing Hardware~ 032122_MULTIPLE 011.0014991011.1049.520000 $ 2,883.58 Small Tools & Plumbing Hardware~ 032122_MULTIPLE 011.0014991$ 4,830.0903/21/2022 12692Printed: 4/12/2022 9:07:13AMPage 11 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.8100.560000 $ 34.32 Period: 01/28/22 ‐ 02/28/22 030222SO CAL EDISON000059 ‐ 055.9200.560010 $ 556.68 Period: 02/22 030222(2)011.1049.560000 $ 92.07 Period: 02/14/22 ‐ 03/15/22 031622$ 683.0703/23/2022 12693011.1049.560000 $ 50.83 Period: 12/10/21 ‐ 01/11/22 011322(2)THE GAS COMPANY001581 ‐ 011.1049.560000 $ 48.62 Period: 01/11/22 ‐ 02/10/22 021422(2)011.1049.560000 $ 45.30 Period: 02/10/21 ‐ 03/14/21 031622056.5600.560000 $ 98.96 Period: 02/11/22 ‐ 03/15/22 031722$ 243.7103/23/2022 12694011.1041.520000 $ 50.77 Period: 03/22 933312122(2)UPS001617 ‐ $ 50.7703/23/2022 12695011.1033.560000 $ 16.73 Period: 02/10/21 ‐ 03/14/22 031622(2)THE GAS COMPANY001581 ‐ $ 16.7303/25/2022 12696TOTAL ELECTRONIC$ 4,559,693.50Printed: 4/12/2022 9:07:13AMPage 12 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1049.596700 $ 3,888.35 CDL Training 3685COMMERCIAL TRANSPORTATION SERV006365 ‐ 011.1049.596700 $ 1,891.01 CDL Training 3686$ 5,779.3603/21/2022 608938055.7200.596702 $ 5,677.07 Customer IncenƟve Program 0314224150 BANDINI, LLC007179 ‐ $ 5,677.0703/24/2022 608939Printed: 4/12/2022 9:07:13AMPage 13 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.9019.560010 $ 22.91 Period: 12/06/21 ‐ 01/05/22 17580016AT&T001948 ‐ 011.9019.560010 $ 2,978.28 Period: 12/10/21 ‐ 01/09/22 17590288011.9019.560010 $ 44.41 Period: 12/10/21 ‐ 01/09/22 17590289011.9019.560010 $ 2,005.03 Period: 12/10/21 ‐ 01/09/22 17590291011.9019.560010 $ 1,287.82 Period: 12/10/21 ‐ 01/09/22 17590292011.9019.560010 $ 204.13 Period: 12/10/21 ‐ 12/09/22 17590724011.9019.560010 $ 21.24 Period: 12/15/21 ‐ 01/14/22 17629384011.9019.560010 $ 22.62 Period: 01/06/22 ‐ 02/05/22 17719426011.9019.560010 $ 2,991.88 Period: 01/10/22 ‐ 02/09/22 17733188011.9019.560010 $ 44.28 Period: 01/10/22 ‐ 02/09/22 17733189055.9000.560010 $ 243.86 Period: 01/10/22 ‐ 02/09/22 17733190011.9019.560010 $ 1,992.23 Period: 01/10/22 ‐ 02/09/22 17733191011.9019.560010 $ 1,284.64 Period: 01/10/22 ‐ 02/09/22 17733192056.5600.560010 $ 649.76 Period: 01/10/22 ‐ 02/09/22 17733193056.5600.560010 $ 22.58 Period: 01/10/22 ‐ 12/09/22 17733292011.9019.560010 $ 201.16 Period: 01/10/22 ‐ 02/09/22 17733624011.9019.560010 $ 21.81 Period: 01/15/22 ‐ 02/14/22 17773996011.9019.560010 $ 22.56 Period: 02/06/22 ‐ 03/05/22 17866964011.9019.560010 $ 3,153.36 Period: 02/10/22 ‐ 03/09/22 17873719011.9019.560010 $ 45.66 Period: 02/10/22 ‐ 03/09/22 17873720055.9000.560010 $ 245.37 Period: 02/10/22 ‐ 03/09/22 17873721011.9019.560010 $ 2,060.00 Period: 02/10/22 ‐ 03/09/22 17873722011.9019.560010 $ 1,286.31 Period: 02/10/22 ‐ 03/09/22 17873723Printed: 4/12/2022 9:07:13AMPage 14 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE056.5600.560010 $ 649.20 Period: 02/10/22 ‐ 03/09/22 17873724AT&T001948 ‐ 056.5600.560010 $ 22.56 Period: 02/10/22 ‐ 03/09/22 17873823011.9019.560010 $ 201.44 Period: 02/10/22 ‐ 03/09/22 17874155011.9019.560010 $ 22.83 Period: 02/15/22 ‐ 03/14/22 17920097$ 21,747.9303/24/2022 608940055.9200.560010 $ 152.00 Period: 12/19/21 ‐ 01/18/22 1550417604AT&T001948 ‐ 055.9200.560010 $ 314.94 Period: 11/19/21 ‐ 12/18/21 3133251354055.9200.560010 $ 314.94 Period: 12/19/21 ‐ 01/18/22 3134140389055.9200.560010 $ 305.43 Period: 01/19/22 ‐ 02/18/22 3135032605$ 1,087.3103/24/2022 608941011.1024.593200 $ 4,399.50 Re: General~ 281557BURKE, WILLIAMS & SORENSEN, LL005078 ‐ $ 4,399.5003/24/2022 608942011.1047.540000 $ 41.12 First Aid Kit Restock 5099592452CINTAS CORPORATION005490 ‐ $ 41.1203/24/2022 608943Printed: 4/12/2022 9:07:13AMPage 15 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE055.8000.590000 $ 30.00 Refill Cylinders~ 643367 055.0002890CRAIG WELDING SUPPLY, CO000310 ‐ 055.9190.520000 $ 150.29 Refill Cylinders~ 643542 055.0002930055.8000.590000 $ 30.00 Refill Cylinders~ 643668 055.0002890055.8000.590000 $ 30.00 Refill Cylinders~ 643982 055.0002890055.9190.520000 $ 172.87 Refill Cylinders ~ 644008 055.0002930055.8000.590000 $ 97.51 Refill Cylinders~ 644060 055.0002890055.8000.590000 $ 352.50 Refill Cylinders~ 644102 055.0002890$ 863.1703/24/2022 608944011.1060.570000 $ 22.00 ApplicaƟon for Clean Air Vehicle 031722DEPARTMENT OF MOTOR VEHICLES000699 ‐ $ 22.0003/24/2022 608945011.1003.596300 $ 128.70 2022 CA ElecƟon Code Books 031722DFM ASSOCIATES006625 ‐ $ 128.7003/24/2022 608946011.9019.595210 $ 175.00 Restore backup of Heorot~ 5724 011.0015097DIGITALTHINKER, INC007232 ‐ $ 175.0003/24/2022 608947011.1046.590000 $ 1,841.25 Hazardous Waste Management Services 2203042EXPRESS OIL CO000414 ‐ $ 1,841.2503/24/2022 608948011.1031.596500 $ 23.85 Arrest & Control / Strategic 031622GAYTAN, LORENZO001668 ‐ 011.1031.596700 $ 25.00 Arrest & Control / Strategic 031622$ 48.8503/24/2022 608949Printed: 4/12/2022 9:07:13AMPage 16 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1049.520000 $ 405.38 Building Hardware~ 9222069073 011.0014914GRAINGER, CO001712 ‐ $ 405.3803/24/2022 608950011.1046.520000 $ 35.60 Wiper Blades~ 1IN0485168 011.0015138H&H WHOLESALE PARTS003490 ‐ 011.1046.520000 $ 35.60 Wiper Blades~ 1IN0485168 011.0015138011.1046.520000 $ 86.88 Brake Cleaner~ 1IN0485168 011.0015138011.1046.520000 $ 237.27 Brake Pads~ 1IN0485168 011.0015138011.1046.520000 $ 37.56 Sales Tax 9.5% 1IN0485168$ 432.9103/24/2022 608951011.1031.596500 $ 23.85 Arrest & Control / Strategic 031622HERNANDEZ JR, MIGUEL003999 ‐ 011.1031.596700 $ 25.00 Arrest & Control / Strategic 031622$ 48.8503/24/2022 608952011.1070.550000 $ 34.00 Expense Reimbursement~ 032222LILIA HERNANDEZ005442 ‐ $ 34.0003/24/2022 608953055.9190.500230 $ 5,269.19 Ammonia Delivery 12/16/22 07117581HILL BROTHERS CHEMICAL CO002208 ‐ 055.9190.500230 $ 5,548.08 Ammonia Delivery 01/07/22 07119294055.9190.500230 $ 5,581.49 Ammonia Delivery 01/28/22 07121565$ 16,398.7603/24/2022 608954Printed: 4/12/2022 9:07:13AMPage 17 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1002.502030 $ 500.00 Employer ContribuƟon 03/01/22 031722(2)HSA BANK004239 ‐ 011.1003.502030 $ 1,000.00 Employer ContribuƟon 03/01/22 031722(2)011.1004.502030 $ 2,000.00 Employer ContribuƟon 03/01/22 031722(2)011.1024.502030 $ 1,000.00 Employer ContribuƟon 03/01/22 031722(2)011.1026.502030 $ 2,000.00 Employer ContribuƟon 03/01/22 031722(2)011.1031.502030 $ 7,500.00 Employer ContribuƟon 03/01/22 031722(2)011.1040.502030 $ 1,000.00 Employer ContribuƟon 03/01/22 031722(2)011.1041.502030 $ 1,500.00 Employer ContribuƟon 03/01/22 031722(2)011.1043.502030 $ 2,500.00 Employer ContribuƟon 03/01/22 031722(2)011.1046.502030 $ 500.00 Employer ContribuƟon 03/01/22 031722(2)011.1049.502030 $ 500.00 Employer ContribuƟon 03/01/22 031722(2)011.1060.502030 $ 2,167.00 Employer ContribuƟon 03/01/22 031722(2)011.9019.502030 $ 1,500.00 Employer ContribuƟon 03/01/22 031722(2)020.1084.502030 $ 3,500.00 Employer ContribuƟon 03/01/22 031722(2)056.5600.502030 $ 1,000.00 Employer ContribuƟon 03/01/22 031722(2)055.8100.502030 $ 500.00 Employer ContribuƟon 03/01/22 031722(2)055.9000.502030 $ 1,500.00 Employer ContribuƟon 03/01/22 031722(2)055.9100.502030 $ 1,500.00 Employer ContribuƟon 03/01/22 031722(2)055.9190.502030 $ 3,500.00 Employer ContribuƟon 03/01/22 031722(2)055.9200.502030 $ 500.00 Employer ContribuƟon 03/01/22 031722(2)$ 35,667.0003/24/2022 608955Printed: 4/12/2022 9:07:13AMPage 18 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1026.502030 $ 1,000.00 Employer ContribuƟon 03/01/22~ 031722HSA BANK004239 ‐ $ 1,000.0003/24/2022 608956011.1031.596500 $ 23.85 Arrest & Control / Strategic 031622LUCAS, JASON005630 ‐ 011.1031.596700 $ 25.00 Arrest & Control / Strategic 031622$ 48.8503/24/2022 608957055.9190.520000 $ 3,205.08 Welding Supplies~ 24876473 055.0002931MATHESON TRI‐GAS, INC006520 ‐ 055.9190.520000 $ 4,645.84 Welding Supplies~ 25226360 055.0002931055.9190.520000 $ 441.56 Welding Supplies~ 771031966 055.0002931055.9190.520000 $ 392.89 Welding Supplies~ 771034928 055.0002931$ 8,685.3703/24/2022 608958011.1046.520000 $ 150.00 Arrow Board Brackets~ 36562IN 011.0015071NATIONAL SIGNAL, INC003493 ‐ 011.1046.520000 $ 15.38 Sales Tax 10.25 36562IN$ 165.3803/24/2022 608959011.1031.596500 $ 16.83 Vehicle Street Racing & Side Show 030922ONOPA, DANIEL003248 ‐ $ 16.8303/24/2022 608960011.1049.520000 $ 171.91 Plumbing Supplies & Building Hardware~ S1261854001 011.0014917PLUMBING & INDUSTRIAL SUPPLY001943 ‐ 011.1049.520000 $ 626.11 Plumbing Supplies & Building Hardware~ S1262453001 011.0014917$ 798.0203/24/2022 608961Printed: 4/12/2022 9:07:13AMPage 19 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.4031.596700 $ 9,700.00 SMIP Enrollment / N. Perez 205050885POLICE EXECUTIVE RESEARCH FORU006939 ‐ $ 9,700.0003/24/2022 608962055.9190.500230 $ 687.20 Lab Services 85519POSITIVE LAB SERVICE000470 ‐ 055.9190.500230 $ 580.20 Lab Services 85802$ 1,267.4003/24/2022 608963011.1046.590000 $ 1,035.00 Car Wash Services 293148QUALIFIED MOBILE, INC006612 ‐ 011.1046.590000 $ 810.00 Car Wash Services 293914$ 1,845.0003/24/2022 608964011.1031.596500 $ 16.83 Vehicle Street Racing & Side Show 030922REDONA, BRYAN006628 ‐ 011.1031.596500 $ 23.85 Arrest & Control / Strategic 031622011.1031.596700 $ 25.00 Arrest & Control / Strategic 031622$ 65.6803/24/2022 608965055.9190.520000 $ 46.90 Expense Reimbursement for Supplies 030322PEDRO REVUELTA007247 ‐ $ 46.9003/24/2022 608966011.1060.595200 $ 924.00 Environmental RemediaƟon Services 02/22 1329714SESPE CONSULTING, INC006997 ‐ 011.1060.595200 $ 1,022.00 Environmental RemediaƟon Services 02/221329716011.1060.595200 $ 1,855.00 Environmental RemediaƟon Services 02/221329718$ 3,801.0003/24/2022 608967Printed: 4/12/2022 9:07:13AMPage 20 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1024.593200 $ 2,887.76 Re: Jerry Chavez v. City of Vernon~ 21953STREAM KIM HICKS WRAGE & ALFAR006438 ‐ $ 2,887.7603/24/2022 608968011.1031.596500 $ 23.85 Arrest & Control / Strategic 032222SWINFORD, PHILLIP001616 ‐ 011.1031.596700 $ 25.00 Arrest & Control / Strategic 032222$ 48.8503/24/2022 608969011.1031.596200 $ 1,276.60 SoŌware SubscripƟon Charges 845456265THOMSON REUTERS ‐ WEST000141 ‐ $ 1,276.6003/24/2022 608970055.8400.596200 $ 459.00 Elevator Service & Maintenance 3006340654THYSSENKRUPP ELEVATOR CORPORAT006132 ‐ $ 459.0003/24/2022 608971055.110011 $ 18,913.98 Overpayment Refund~ 030822UNICOLD CORPORATION007340 ‐ $ 18,913.9803/24/2022 608972011.1031.596500 $ 23.85 Arrest & Control / Strategic 031622VASQUEZ, LUIS001947 ‐ 011.1031.596700 $ 25.00 Arrest & Control / Strategic 031622$ 48.8503/24/2022 608973011.1031.596500 $ 14.51 Crisis CommunicaƟon & Social Media for 032122VELEZ, MARISSA006205 ‐ $ 14.5103/24/2022 608974055.9000.560010 $ 1,044.73 Period: 12/24/21 ‐ 01/23/22 9898079319VERIZON WIRELESS001481 ‐ $ 1,044.7303/24/2022 608975Printed: 4/12/2022 9:07:13AMPage 21 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1049.520000 $ 81.39 Electrical Parts ~ S120120118001 011.0014928WALTERS WHOLESALE ELECTRIC, CO002886 ‐ $ 81.3903/24/2022 608976020.1084.595200 $ 15.00 Water Quality TesƟng & ReporƟng W2C0356COVERNONWECK LABORATORIES, INC001628 ‐ 020.1084.595200 $ 30.00 Water Quality TesƟng & ReporƟng W2C0360COVERNON$ 45.0003/24/2022 608977011.1040.400900 $ 3,667.88 ParƟal Warehouse Special Parcel Tax 032822591 N BRONSON LLC007297 ‐ $ 3,667.8803/30/2022 608978011.1046.520000 $ 41.95 Oil Filter~ 36106 011.0015137ANAYA SERVICE CENTER006308 ‐ 011.1046.520000 $ 118.95 Fuel Filter~ 36106 011.0015137011.1046.520000 $ 134.36 Oil~ 36106 011.0015137011.1046.520000 $ 395.95 A/C Compressor~ 36106 011.0015137011.1046.520000 $ 49.90 Freon~ 36106 011.0015137011.1046.520000 $ 414.00 Labor 36106 011.0015137011.1046.520000 $ 75.96 Sales Tax 10.25 36106$ 1,231.0703/30/2022 608979011.1004.595200 $ 855.00 Actuarial ConsulƟng Services~ 22119BARTEL ASSOCIATES, LLC007123 ‐ $ 855.0003/30/2022 608980Printed: 4/12/2022 9:07:13AMPage 22 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1041.595200 $ 290.70 1st Qtr 01/01/22 ‐ 03/31/22 032322CA BUILDING STANDARDS COMMISSI003749 ‐ $ 290.7003/30/2022 608981011.1043.900000 $ 34,405.00 Unsegreted Fixtures~ 032922CLEAR CHANNEL OUTDOOR002756 ‐ $ 34,405.0003/30/2022 608982055.9000.596700 $ 39,393.80 Office Furniture 122997IND&R OFFICE WORKS, INC001027 ‐ 055.9000.596700 $ 34,135.45 Office Furniture 123444IN$ 73,529.2503/30/2022 608983011.1041.595200 $ 1,870.21 Mapping Fee 1st Qtr 2022 032322DEPARTMENT OF CONSERVATION000977 ‐ $ 1,870.2103/30/2022 608984011.1046.520000 $ 100.00 Trimmer line~ 144480 011.0015144GARVEY EQUIPMENT COMPANY000399 ‐ 011.1046.520000 $ 447.84 Sthil Moto Mix~ 144480 011.0015144011.1046.520000 $ 559.95 SƟhl Moto 4~ 144480 011.0015144011.1046.520000 $ 113.55 Sales Tax 10.25 144480$ 1,221.3403/30/2022 608985020.1084.900000 $ 5,740.50 CoaƟng InspecƟon Services ENG7670HARPER & ASSOCIATES ENGINEERIN000280 ‐ $ 5,740.5003/30/2022 608986011.1026.502031 $ 2,468.06 LA Co Fire 1014 Medical Insurance 032322TODD HEWETT000332 ‐ $ 2,468.0603/30/2022 608987Printed: 4/12/2022 9:07:13AMPage 23 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1031.520000 $ 450.69 Supplies 388217LYNN PEAVEY CO.001291 ‐ $ 450.6903/30/2022 608988011.1041.595200 $ 7,285.00 Plan Check Services~ 14376MELVYN GREEN & ASSOCIATES, INC001096 ‐ $ 7,285.0003/30/2022 608989011.1043.540000 $ 26.50 Ladies Polo ~ 1015263 011.0015164NEW CHEF FASHION, INC004539 ‐ 011.1041.540000 $ 26.50 Ladies Polo ~ 1015263 011.0015164011.1040.540000 $ 26.50 OGIO Caliber 2.0 POLO, Flat knit 1015263 011.0015164011.1043.540000 $ 26.50 Ladies Polo (OGIO Jewel) Self‐fabric 1015263 011.0015164011.1043.540000 $ 5.44 Sales Tax 10.25 1015263011.1041.540000 $ 2.72 Sales Tax 10.25 1015263011.1040.540000 $ 2.71 Sales Tax 10.25 1015263011.1041.540000 $ 26.50 OGIO Caliber 2.0 POLO~ 1018158 011.0015163011.1041.540000 $ 2.72 Sales Tax 10.25 1018158$ 146.0903/30/2022 608990Printed: 4/12/2022 9:07:13AMPage 24 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1046.590000 $ 880.00 Smog Check Small Pass Vehicle ~ 021622_MULTIPLE 011.0014950PACIFIC AUTO REPAIR004831 ‐ 011.1046.590000 $ 123.50 Smog Check Full Size Vehicle~ 021622_MULTIPLE 011.0014950011.1046.590000 $ 59.95 Smog Check Small Size Diesel~ 021622_MULTIPLE 011.0014950011.1046.590000 $ 65.00 Smog Check Full Size diesel~ 021622_MULTIPLE 011.0014950011.1046.520000 $ 39.00 A/C Belt 5430 011.0015143011.1046.520000 $ 600.00 Sublet Repairs 5430 011.0015143011.1046.590000 $ 1,850.00 Labor to Remove Replace Clean & Coat 5430 011.0015143011.1046.520000 $ 65.50 Sales Tax 10.25 5430$ 3,682.9503/30/2022 608991011.1046.590000 $ 1,327.50 Car Wash Services 294141QUALIFIED MOBILE, INC006612 ‐ $ 1,327.5003/30/2022 608992011.1031.596700 $ 115.00 Pre‐Academy RegistraƟon Fees / Rudy 11408SANTA ANA COLLEGE002860 ‐ 011.1031.596700 $ 1,357.00 Academy RegistraƟon Fees / Rudy 11409$ 1,472.0003/30/2022 608993011.1031.596200 $ 595.00 Medical Services 521146030STACY MEDICAL CENTER000380 ‐ $ 595.0003/30/2022 608994011.1031.520000 $ 6.30 Laundry Services~ 11290 011.0014922STATE STREET LAUNDRY000191 ‐ $6.3003/30/2022 608995Printed: 4/12/2022 9:07:13AMPage 25 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1046.520000 $ 453.76 Tires~ 26212282 011.0015178TIREHUB, LLC006371 ‐ 011.1046.590000 $ 7.00 California Tire Fee 26212282 011.0015178011.1046.520000 $ 43.11 Sales Tax 9.5% 26212282$ 503.8703/30/2022 608996020.1084.596200 $ 113.95 New Ticket Charges 120220784UNDERGROUND SERVICE ALERT000449 ‐ 056.5600.596200 $ 156.85 New Ticket Charges 220220779$ 270.8003/30/2022 608997055.8000.590000 $ 580.00 Oil Samples 5900337665WEIDMANN ELECTRICAL TECHNOLOGY002075 ‐ 055.8000.590000 $ 290.00 Oil Samples 5900338948055.8000.590000 $ 580.00 Oil Samples 5900339682$ 1,450.0003/30/2022 608998011.1043.900000 $ 1,431,762.00 Project ID No. MPR0000883~ 032922COUNTY OF LOS ANGELES001444 ‐ $ 1,431,762.0003/30/2022 608999TOTAL EARLY CHECKS$ 1,721,290.47Printed: 4/12/2022 9:07:13AMPage 26 of 27
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 85APRIL 19, 2022RECAP BY FUNDFUNDELECTRONIC TOTALEARLY CHECK TOTALWARRANT TOTALGRAND TOTALS$ 88,170.85$ 1,660,148.75$0.00$ 1,571,977.90011 ‐ GENERAL9,954.3719,353.820.009,399.45020 ‐ WATER4,456,362.114,593,774.280.00137,412.17055 ‐ LIGHT & POWER5,206.177,707.120.002,500.95056 ‐ NATURAL GASGRAND TOTAL$6,280,983.97$0.00$1,721,290.47$4,559,693.50TOTAL CHECKS TO BE PRINTED 0Printed: 4/12/2022 9:07:13AMPage 27 of 27
City Council Agenda Item Report
Submitted by: Diana Figueroa
Submitting Department: Fire Department
Meeting Date: April 19, 2022
SUBJECT
Fire Department Activity Report
Recommendation:
Receive and file the February 2022 Fire Department Activity Report.
Background:
Attached is a copy of a Fire Department Activity Report which covers the period of February 1
through February 28, 2022. The report is provided by Los Angeles County Fire and consists of
incident details and a summary for the month.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Fire Department Activity Report - February 2022
COUNTY OF LOS ANGELES FIRE DEPARTMENT
CITY OF VERNON STATISTICS
FEBRUARY 2022 CITY DETAILS
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
02/01/22 LAC22041073 UNC 321 - EMS call,
excluding vehicle
accident with injury
2355 East 37TH
VERNON CA 90058
2355 East 37TH
Street
E52
02/01/22 LAC22041471 TCT 321 - EMS call,
excluding vehicle
accident with injury
South ALAMEDA
VERNON CA 90255
South ALAMEDA
Street
E52
02/01/22 LAC22041554 INJA 321 - EMS call,
excluding vehicle
accident with injury
5300 South BOYLE
VERNON CA 90058
5300 South BOYLE
Avenue
E13
02/02/22 LAC22041610 CP 321 - EMS call,
excluding vehicle
accident with injury
4380 AYERS VERNON
CA 90023
4380 AYERS
Avenue
E27
02/02/22 LAC22041822 ALRWF 611 - Dispatched and
cancelled en route
2500 South SANTA FE
VERNON CA 90058
2500 South SANTA
FE Avenue
02/02/22 LAC22041850 INJA 321 - EMS call,
excluding vehicle
accident with injury
4317 South DOWNEY
VERNON CA 90058
4317 South
DOWNEY Road
E13
02/02/22 LAC22041851 ASSLTB 600 - Good intent call,
other
1875 East 27TH
VERNON CA 90058
1875 East 27TH
Street
02/02/22 LAC22041991 ALRA 611 - Dispatched and
cancelled en route
2300 East VERNON
VERNON CA 90058
2300 East VERNON
Avenue
02/02/22 LAC22042177 STRC 100 - Fire, other 5383 South ALCOA
VERNON CA 90058
5383 South ALCOA
Avenue
Q13
02/02/22 LAC22042541 RUB 100 - Fire, other East SLAUSON
VERNON CA 90058
East SLAUSON
Avenue
E13
02/02/22 LAC22042641 MISC1 150 - Outside rubbish
fire, other
East WASHINGTON
VERNON CA 90023
East WASHINGTON
Boulevard
E52
02/03/22 LAC22042757 BLEEDA 321 - EMS call,
excluding vehicle
accident with injury
5353 South DOWNEY
VERNON CA 90058
5353 South
DOWNEY Road
S13
02/03/22 LAC22043277 INJA 611 - Dispatched and
cancelled en route
4580 South PACIFIC
VERNON CA 90058
4580 South PACIFIC
Boulevard
02/03/22 LAC22043302 INJA 321 - EMS call,
excluding vehicle
accident with injury
4580 South PACIFIC
VERNON CA 90058
4580 South PACIFIC
Boulevard
E52
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
02/03/22 LAC22043804 UNC 321 - EMS call,
excluding vehicle
accident with injury
1 East VERNON
VERNON CA 90058
1 East VERNON
Avenue
E52
02/04/22 LAC22044019 INJA 321 - EMS call,
excluding vehicle
accident with injury
5151 South ALCOA
VERNON CA 90058
5151 South ALCOA
Avenue
E13
02/04/22 LAC22044032 ALRWF 744 - Detector
activation, no fire -
unintentional
2300 East 57TH
VERNON CA 90058
2300 East 57TH
Street
E52
02/04/22 LAC22044175 UNC 321 - EMS call,
excluding vehicle
accident with injury
2801 East 46TH
VERNON CA 90058
2801 East 46TH
Street
E52
02/04/22 LAC22044183 ALRA 700 - False alarm or
false call, other
2340 East 52ND
VERNON CA 90058
2340 East 52ND
Street
E52
02/04/22 LAC22044363 TCA 321 - EMS call,
excluding vehicle
accident with injury
DISTRICT VERNON CA
90040
DISTRICT Boulevard E27
02/04/22 LAC22044455 ALRWF 700 - False alarm or
false call, other
3021 BANDINI VERNON
CA 90023
3021 BANDINI
Boulevard
02/04/22 LAC22044588 ALRA 611 - Dispatched and
cancelled en route
2600 East 28TH
VERNON CA 90058
2600 East 28TH
Street
E52
02/04/22 LAC22044706 ALRA 611 - Dispatched and
cancelled en route
1900 25TH VERNON CA
90058
1900 25TH Street
02/04/22 LAC22044991 VEHL 700 - False alarm or
false call, other
East WASHINGTON
VERNON CA 90023
East WASHINGTON
Boulevard
02/04/22 LAC22045032 SICKB 321 - EMS call,
excluding vehicle
accident with injury
3333 South DOWNEY
VERNON CA 90023
3333 South
DOWNEY Road
E52
02/05/22 LAC22045249 MISC1 700 - False alarm or
false call, other
BANDINI VERNON CA
90023
BANDINI Boulevard E52
02/05/22 LAC22045315 ALRA 730 - System
malfunction, other
4700 South ALCOA
VERNON CA 90058
4700 South ALCOA
Avenue
E13
02/05/22 LAC22045651 ALRMAN 745 - Alarm system
activation, no fire -
unintentional
2727 East VERNON
VERNON CA 90058
2727 East VERNON
Avenue
E52
02/06/22 LAC22046267 EMS 300 - Rescue, EMS
incident, other
East 26TH VERNON CA
90023
East 26TH Street S13
02/06/22 LAC22046386 MISC1 150 - Outside rubbish
fire, other
4717 DISTRICT
VERNON CA 90058
4717 DISTRICT
Boulevard
E13
02/06/22 LAC22046723 CP 321 - EMS call,
excluding vehicle
accident with injury
4462 South PACIFIC
VERNON CA 90058
4462 South PACIFIC
Boulevard
E52
02/06/22 LAC22046893 ALRWF 600 - Good intent call, 3049 East VERNON 3049 East VERNON E52
FEBRUARY 2022 CITY DETAILS
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
other VERNON CA 90058 Avenue
02/06/22 LAC22047215 SICKA 321 - EMS call,
excluding vehicle
accident with injury
4305 South SANTA FE
VERNON CA 90058
4305 South SANTA
FE Avenue
E52
02/07/22 LAC22047563 ALREMS 600 - Good intent call,
other
3251 East
WASHINGTON VERNON
CA 90023
3251 East
WASHINGTON
Boulevard
E52
02/07/22 LAC22047596 SICKB 321 - EMS call,
excluding vehicle
accident with injury
3737 South SOTO
VERNON CA 90058
3737 South SOTO
Street
E52
02/07/22 LAC22047686 SZR 321 - EMS call,
excluding vehicle
accident with injury
2520 South ALAMEDA
VERNON CA 90058
2520 South
ALAMEDA Street
E52
02/07/22 LAC22047982 ALRWF 600 - Good intent call,
other
2425 East 38TH
VERNON CA 90058
2425 East 38TH
Street
E52
02/07/22 LAC22048000 ALRWF 611 - Dispatched and
cancelled en route
2425 East 38TH
VERNON CA 90058
2425 East 38TH
Street
02/07/22 LAC22048376 MISC1 150 - Outside rubbish
fire, other
DISTRICT VERNON CA
90040
DISTRICT Boulevard E163
02/08/22 LAC22048612 SICKA 321 - EMS call,
excluding vehicle
accident with injury
3003 East LEONIS
VERNON CA 90058
3003 East LEONIS
Boulevard
E52
02/08/22 LAC22048676 ALRWFR 730 - System
malfunction, other
4900 South BOYLE
VERNON CA 90058
4900 South BOYLE
Avenue
E13
02/08/22 LAC22048837 ALRA 611 - Dispatched and
cancelled en route
3463 East 26TH
VERNON CA 90023
3463 East 26TH
Street
02/08/22 LAC22048884 EMS 321 - EMS call,
excluding vehicle
accident with injury
5301 South SANTA FE
VERNON CA 90058
5301 South SANTA
FE Avenue
S164
02/09/22 LAC22049793 VEHL 162 - Outside
equipment fire
2901 FRUITLAND
VERNON CA 90058
2901 FRUITLAND
Avenue
Q13
02/09/22 LAC22049836 ALRWF 735 - Alarm system
sounded due to
malfunction
2300 East 57TH
VERNON CA 90058
2300 East 57TH
Street
E52
02/09/22 LAC22049842 CP 321 - EMS call,
excluding vehicle
accident with injury
3049 East VERNON
VERNON CA 90058
3049 East VERNON
Avenue
E52
02/09/22 LAC22049896 UNC 321 - EMS call,
excluding vehicle
accident with injury
4505 BANDINI VERNON
CA 90040
4505 BANDINI
Boulevard
E27
02/09/22 LAC22049973 TCB 321 - EMS call,
excluding vehicle
accident with injury
2856 East LEONIS
VERNON CA 90058
2856 East LEONIS
Boulevard
E13
FEBRUARY 2022 CITY DETAILS
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
02/09/22 LAC22049983 INVO 600 - Good intent call,
other
South SOTO VERNON
CA 90023
South SOTO Street
02/09/22 LAC22050140 UNC 321 - EMS call,
excluding vehicle
accident with injury
2775 East 26TH
VERNON CA 90023
2775 East 26TH
Street
S13
02/10/22 LAC22050966 RUB 118 - Trash or rubbish
fire, contained
South ATLANTIC
VERNON CA 90040
South ATLANTIC
Boulevard
E27 0 0
02/10/22 LAC22051001 DIAA 600 - Good intent call,
other
4305 South SANTA FE
VERNON CA 90058
4305 South SANTA
FE Avenue
E52
02/10/22 LAC22051140 TCA 322 - Motor vehicle
accident with injuries
Boyle South BOYLE
VERNON CA 90058
Boyle South BOYLE
Avenue
S13
02/10/22 LAC22051218 UNC 321 - EMS call,
excluding vehicle
accident with injury
4618 South PACIFIC
VERNON CA 90058
4618 South PACIFIC
Boulevard
E52
02/10/22 LAC22051239 INJA 321 - EMS call,
excluding vehicle
accident with injury
2528 East 37TH
VERNON CA 90058
2528 East 37TH
Street
E52
02/10/22 LAC22051241 TCP 321 - EMS call,
excluding vehicle
accident with injury
South SOTO VERNON
CA 90058
South SOTO Street E13
02/10/22 LAC22051244 ALRWF 730 - System
malfunction, other
5800 South BOYLE
VERNON CA 90058
5800 South BOYLE
Avenue
02/10/22 LAC22051377 ALRWF 611 - Dispatched and
cancelled en route
2760 FRUITLAND
VERNON CA 90058
2760 FRUITLAND
Avenue
02/10/22 LAC22051753 RUB 118 - Trash or rubbish
fire, contained
3480 East 26TH
VERNON CA 90023
3480 East 26TH
Street
E52 0 0
02/10/22 LAC22052087 CP 321 - EMS call,
excluding vehicle
accident with injury
East 58TH VERNON CA
90058
East 58TH Street S164
02/11/22 LAC22052392 GRS 5107 DISTRICT
VERNON CA 90058
5107 DISTRICT
Boulevard
E163
02/12/22 LAC22053591 MISC1 321 - EMS call,
excluding vehicle
accident with injury
5030 GIFFORD
VERNON CA 90058
5030 GIFFORD
Avenue
E163
02/12/22 LAC22053708 ALRWF 730 - System
malfunction, other
4614 East 48TH
VERNON CA 90058
4614 East 48TH
Street
E13
02/12/22 LAC22054165 CP 321 - EMS call,
excluding vehicle
accident with injury
2550 South ALAMEDA
VERNON CA 90058
2550 South
ALAMEDA Street
E52
02/12/22 LAC22054357 ALRMAN 735 - Alarm system
sounded due to
malfunction
4460 South PACIFIC
BLVD #28 VERNON CA
90058
4460 South PACIFIC
BLVD #28
E52
02/12/22 LAC22054409 ELEC 321 - EMS call, 1 South ATLANTIC 1 South ATLANTIC E27
FEBRUARY 2022 CITY DETAILS
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
excluding vehicle
accident with injury
VERNON CA 90040 Boulevard
02/13/22 LAC22054923 EMS 600 - Good intent call,
other
0 FRUITLAND VERNON
CA 90058
0 FRUITLAND
Avenue
S13
02/13/22 LAC22055188 UNC 321 - EMS call,
excluding vehicle
accident with injury
2522 East 37TH
VERNON CA 90058
2522 East 37TH
Street
S13
02/13/22 LAC22055592 ALRWF 611 - Dispatched and
cancelled en route
3049 East VERNON
VERNON CA 90058
3049 East VERNON
Avenue
02/14/22 LAC22056140 MISC1 118 - Trash or rubbish
fire, contained
26TH VERNON CA
90040
26TH Street E27 0 0
02/14/22 LAC22056401 TCB 300 - Rescue, EMS
incident, other
South ATLANTIC
VERNON CA 90040
South ATLANTIC
Boulevard
E13
02/14/22 LAC22056534 TCB 322 - Motor vehicle
accident with injuries
ROSS VERNON CA
90058
ROSS Street E52
02/15/22 LAC22057186 ALRWF 730 - System
malfunction, other
3420 East VERNON
VERNON CA 90058
3420 East VERNON
Avenue
E52
02/15/22 LAC22057219 POLE 150 - Outside rubbish
fire, other
South ALAMEDA
VERNON CA 90058
South ALAMEDA
Street
E52
02/15/22 LAC22057540 ALRWF 611 - Dispatched and
cancelled en route
2425 East 38TH
VERNON CA 90058
2425 East 38TH
Street
02/15/22 LAC22057599 ALRWF 735 - Alarm system
sounded due to
malfunction
5225 South SOTO
VERNON CA 90058
5225 South SOTO
Street
E13
02/16/22 LAC22058613 UNC 321 - EMS call,
excluding vehicle
accident with injury
4618 South PACIFIC
VERNON CA 90058
4618 South PACIFIC
Boulevard
E52
02/16/22 LAC22058618 INJA 321 - EMS call,
excluding vehicle
accident with injury
2350 East 37TH
VERNON CA 90058
2350 East 37TH
Street
S164
02/16/22 LAC22058775 ALRWF 600 - Good intent call,
other
3285 East VERNON
VERNON CA 90058
3285 East VERNON
Avenue
E52
02/16/22 LAC22058853 ALRWF 611 - Dispatched and
cancelled en route
3268 East VERNON
VERNON CA 90058
3268 East VERNON
Avenue
02/16/22 LAC22058931 ALRWF 611 - Dispatched and
cancelled en route
2300 East 57TH
VERNON CA 90058
2300 East 57TH
Street
02/16/22 LAC22059445 GRS 600 - Good intent call,
other
South ALAMEDA
VERNON CA 90058
South ALAMEDA
Street
E52
02/17/22 LAC22059518 MISC1 5107 DISTRICT
VERNON CA 90058
5107 DISTRICT
Boulevard
E163
02/17/22 LAC22059667 TCA 321 - EMS call,
excluding vehicle
1 South BOYLE
VERNON CA 90058
1 South BOYLE
Avenue
E13
FEBRUARY 2022 CITY DETAILS
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
accident with injury
02/17/22 LAC22059707 ALRWF 611 - Dispatched and
cancelled en route
3137 East 26TH
VERNON CA 90023
3137 East 26TH
Street
E52
02/17/22 LAC22059710 ALRWFR 700 - False alarm or
false call, other
2300 East 57TH
VERNON CA 90058
2300 East 57TH
Street
E164
02/17/22 LAC22059940 ALRWF 611 - Dispatched and
cancelled en route
3876 South SANTA FE
VERNON CA 90058
3876 South SANTA
FE Avenue
02/17/22 LAC22060163 TCP 322 - Motor vehicle
accident with injuries
Pacific East LEONIS
VERNON CA 90058
Pacific East LEONIS
Boulevard
E52
02/18/22 LAC22060678 ASSLTA 300 - Rescue, EMS
incident, other
East 52ND
VERNON CA 90270
East 52ND
Drive
S163
02/18/22 LAC22060904 INVO 118 - Trash or rubbish
fire, contained
BANDINI VERNON CO
CA 90058
BANDINI Boulevard E25LFD
02/18/22 LAC22061365 BACKA 321 - EMS call,
excluding vehicle
accident with injury
5353 South DOWNEY
VERNON CA 90058
5353 South
DOWNEY Road
E13
02/19/22 LAC22062746 MISC1 East SLAUSON
VERNON CA 90040
East SLAUSON
Avenue
E163
02/20/22 LAC22062950 EMS 321 - EMS call,
excluding vehicle
accident with injury
5000 DISTRICT
VERNON CA 90058
5000 DISTRICT
Boulevard
S13
02/20/22 LAC22063258 TCA 321 - EMS call,
excluding vehicle
accident with injury
CUDAHY VERNON CA
90058
CUDAHY Avenue S163
02/20/22 LAC22063471 OTHER 600 - Good intent call,
other
3375 FRUITLAND
VERNON CA 90058
3375 FRUITLAND
Avenue
E52
02/21/22 LAC22064419 ALRA 611 - Dispatched and
cancelled en route
2590 HARRIETT
VERNON CA 90058
2590 HARRIETT
Street
E52
02/21/22 LAC22064789 PA 611 - Dispatched and
cancelled en route
2141 East 51ST
VERNON CA 90058
2141 East 51ST
Street
E52
02/21/22 LAC22064964 VEH 611 - Dispatched and
cancelled en route
South PACIFIC VERNON
CA 90058
South PACIFIC
Boulevard
E52
02/22/22 LAC22064995 SZR 321 - EMS call,
excluding vehicle
accident with injury
2775 East 26TH
VERNON CA 90023
2775 East 26TH
Street
S13
02/22/22 LAC22065102 MISC1 611 - Dispatched and
cancelled en route
SEVILLE VERNON CA
90058
SEVILLE Avenue E52
02/22/22 LAC22065183 INJB 300 - Rescue, EMS
incident, other
3280 East 44TH
VERNON CA 90058
3280 East 44TH
Street
E13
02/22/22 LAC22065188 CVA 321 - EMS call,
excluding vehicle
accident with injury
4635 FRUITLAND
VERNON CA 90270
4635 FRUITLAND
Avenue
Q13
FEBRUARY 2022 CITY DETAILS
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
02/22/22 LAC22065273 EMS 611 - Dispatched and
cancelled en route
4890 South ALAMEDA
VERNON CA 90058
4890 South
ALAMEDA Street
S13
02/22/22 LAC22065438 ALRWFR 600 - Good intent call,
other
5008 South BOYLE
VERNON CA 90058
5008 South BOYLE
Avenue
E13
02/22/22 LAC22065536 INJA 321 - EMS call,
excluding vehicle
accident with injury
4501 East 49TH
VERNON CA 90058
4501 East 49TH
Street
S13
02/22/22 LAC22065868 TCA 321 - EMS call,
excluding vehicle
accident with injury
4535 South SOTO
VERNON CA 90058
4535 South SOTO
Street
E52
02/23/22 LAC22066428 SICKA 321 - EMS call,
excluding vehicle
accident with injury
3030 East LEONIS
VERNON CA 90058
3030 East LEONIS
Boulevard
S13
02/23/22 LAC22066624 SICKA 300 - Rescue, EMS
incident, other
3840 26TH VERNON CA
90023
3840 26TH Street S13
02/23/22 LAC22066660 EMS 600 - Good intent call,
other
000 PENNINGTON
VERNON CA 90201
000 PENNINGTON
Way
E27
02/23/22 LAC22066672 RUB 150 - Outside rubbish
fire, other
4650 East 26TH
VERNON CA 90040
4650 East 26TH
Street
Q27 0 0
02/23/22 LAC22066715 ALRWF 700 - False alarm or
false call, other
4408 BANDINI VERNON
CA 90023
4408 BANDINI
Boulevard
Q27
02/24/22 LAC22067242 ALRWF 700 - False alarm or
false call, other
4408 BANDINI VERNON
CA 90023
4408 BANDINI
Boulevard
E27
02/24/22 LAC22067368 ALRMAN 611 - Dispatched and
cancelled en route
2226 East 38TH
VERNON CA 90058
2226 East 38TH
Street
02/24/22 LAC22067385 ALRMAN 611 - Dispatched and
cancelled en route
2240 East 38TH
VERNON CA 90058
2240 East 38TH
Street
02/24/22 LAC22067488 ALRA 745 - Alarm system
activation, no fire -
unintentional
4401 South DOWNEY
VERNON CA 90058
4401 South
DOWNEY Road
02/24/22 LAC22067568 ALRWF 611 - Dispatched and
cancelled en route
2230 East 38TH
VERNON CA 90058
2230 East 38TH
Street
02/24/22 LAC22067589 ALRMAN 611 - Dispatched and
cancelled en route
2226 East 38TH
VERNON CA 90058
2226 East 38TH
Street
02/24/22 LAC22067662 UNC 321 - EMS call,
excluding vehicle
accident with injury
2503 East VERNON
VERNON CA 90058
2503 East VERNON
Avenue
E52
02/24/22 LAC22068212 INJB 321 - EMS call,
excluding vehicle
accident with injury
BANDINI VERNON CA
90040
BANDINI Boulevard E27
02/25/22 LAC22068408 ALRWF 611 - Dispatched and
cancelled en route
5925 South ALCOA
VERNON CA 90058
5925 South ALCOA
Avenue
E13
FEBRUARY 2022 CITY DETAILS
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
02/25/22 LAC22068577 EMS 321 - EMS call,
excluding vehicle
accident with injury
South ALAMEDA
VERNON CA 90058
South ALAMEDA
Street
E52
02/25/22 LAC22068643 EMS 321 - EMS call,
excluding vehicle
accident with injury
3278 East SLAUSON
VERNON CA 90058
3278 East
SLAUSON Avenue
S13
02/25/22 LAC22068644 RUB 611 - Dispatched and
cancelled en route
East WASHINGTON
VERNON CA 90023
East WASHINGTON
Boulevard
E52
02/25/22 LAC22068728 BLEEDA 321 - EMS call,
excluding vehicle
accident with injury
2099 East 27TH
VERNON CA 90058
2099 East 27TH
Street
E52
02/26/22 LAC22069530 EMS 611 - Dispatched and
cancelled en route
4441 South DOWNEY
VERNON CA 90058
4441 South
DOWNEY Road
E13
02/26/22 LAC22070109 ASSLTB 600 - Good intent call,
other
4651 BANDINI VERNON
CA 90040
4651 BANDINI
Boulevard
E27
02/26/22 LAC22070179 TCA 321 - EMS call,
excluding vehicle
accident with injury
INDUSTRIAL VERNON
CA 90023
INDUSTRIAL Way S3
02/26/22 LAC22070587 TCA 300 - Rescue, EMS
incident, other
710 SB 710 SO BANDINI
VERNON CA 90058
710 SB 710 SO
BANDINI Boulevard
E27
02/27/22 LAC22071250 GRS 143 - Grass fire BANDINI VERNON CA
90040
BANDINI Boulevard E27 0 0
02/27/22 LAC22071288 MISC1 118 - Trash or rubbish
fire, contained
South ATLANTIC
VERNON CA 90040
South ATLANTIC
Boulevard
E27 0 0
02/27/22 LAC22071457 ASSLTA 611 - Dispatched and
cancelled en route
East SLAUSON
VERNON CA 90058
East SLAUSON
Avenue
E13
02/28/22 LAC22072027 CP 321 - EMS call,
excluding vehicle
accident with injury
5190 South SANTA FE
VERNON CA 90058
5190 South SANTA
FE Avenue
S164
02/28/22 LAC22072258 ALRWF 611 - Dispatched and
cancelled en route
2619 East 37TH
VERNON CA 90058
2619 East 37TH
Street
02/28/22 LAC22072348 MISC1 611 - Dispatched and
cancelled en route
5107 DISTRICT
VERNON CA 90058
5107 DISTRICT
Boulevard
E13
02/28/22 LAC22072515 TCB 321 - EMS call,
excluding vehicle
accident with injury
4657 BANDINI VERNON
CA 90040
4657 BANDINI
Boulevard
Q27
02/28/22 LAC22072643 INVO 600 - Good intent call,
other
South ALAMEDA
VERNON CA 90058
South ALAMEDA
Street
E52
02/28/22 LAC22072647 INVO 600 - Good intent call,
other
BANDINI VERNON CA
90040
BANDINI Boulevard
02/28/22 LAC22072723 DIAA 321 - EMS call,
excluding vehicle
accident with injury
4580 South PACIFIC
VERNON CA 90058
4580 South PACIFIC
Boulevard
S13
FEBRUARY 2022 CITY DETAILS
Alarm
Date Time
Basic Incident
Number (FD1)
Cad Initial Cad
Incident Type
Description
Incident Type Address Basic Incident Full
Street Address
Basic First Arrived
At Scene
Apparatus ID
Basic Property
Losses
(FD1.35)
Basic Content
Losses
(FD1.36)
Count: 138
FEBRUARY 2022 CITY DETAILS
COUNTY OF LOS ANGELES FIRE DEPARTMENT
CITY OF VERNON STATISTICS
FEBRUARY 2022 TYPES AND TOTALS
Cad Initial Cad Incident Type Description Basic Incident Type Code And Description (FD1.21) Number of incidents Property Loss Content Loss Acres Burned
Basic Incident Type Category (FD1.21): (None)
GRS 1
MISC1 2
Total: 3 Total: $0 Total: 0 Total: 0
Basic Incident Type Category (FD1.21): 1 - Fire
GRS 143 - Grass fire 1 $0 0
INVO 118 - Trash or rubbish fire, contained 1
MISC1 118 - Trash or rubbish fire, contained 2 $0 0
MISC1 150 - Outside rubbish fire, other 3
POLE 150 - Outside rubbish fire, other 1
RUB 100 - Fire, other 1
RUB 118 - Trash or rubbish fire, contained 2 $0 0
RUB 150 - Outside rubbish fire, other 1 $0 0
STRC 100 - Fire, other 1
VEHL 162 - Outside equipment fire 1
Total: 14 Total: $0 Total: 0 Total: 0
Basic Incident Type Category (FD1.21): 3 - Rescue & Emergency Medical Service Incident
ASSLTA 300 - Rescue, EMS incident, other 1
BACKA 321 - EMS call, excluding vehicle accident with injury 1
BLEEDA 321 - EMS call, excluding vehicle accident with injury 2
CP 321 - EMS call, excluding vehicle accident with injury 6
CVA 321 - EMS call, excluding vehicle accident with injury 1
DIAA 321 - EMS call, excluding vehicle accident with injury 1
ELEC 321 - EMS call, excluding vehicle accident with injury 1
EMS 300 - Rescue, EMS incident, other 1
EMS 321 - EMS call, excluding vehicle accident with injury 4
INJA 321 - EMS call, excluding vehicle accident with injury 7
INJB 300 - Rescue, EMS incident, other 1
INJB 321 - EMS call, excluding vehicle accident with injury 1
MISC1 321 - EMS call, excluding vehicle accident with injury 1
SICKA 300 - Rescue, EMS incident, other 1
Cad Initial Cad Incident Type Description Basic Incident Type Code And Description (FD1.21) Number of incidents Property Loss Content Loss Acres Burned
SICKA 321 - EMS call, excluding vehicle accident with injury 3
SICKB 321 - EMS call, excluding vehicle accident with injury 2
SZR 321 - EMS call, excluding vehicle accident with injury 2
TCA 300 - Rescue, EMS incident, other 1
TCA 321 - EMS call, excluding vehicle accident with injury 5
TCA 322 - Motor vehicle accident with injuries 1
TCB 300 - Rescue, EMS incident, other 1
TCB 321 - EMS call, excluding vehicle accident with injury 2
TCB 322 - Motor vehicle accident with injuries 1
TCP 321 - EMS call, excluding vehicle accident with injury 1
TCP 322 - Motor vehicle accident with injuries 1
TCT 321 - EMS call, excluding vehicle accident with injury 1
UNC 321 - EMS call, excluding vehicle accident with injury 9
Total: 59 Total: $0 Total: 0 Total: 0
Basic Incident Type Category (FD1.21): 6 - Good Intent Call
ALRA 611 - Dispatched and cancelled en route 5
ALREMS 600 - Good intent call, other 1
ALRMAN 611 - Dispatched and cancelled en route 3
ALRWF 600 - Good intent call, other 3
ALRWF 611 - Dispatched and cancelled en route 12
ALRWFR 600 - Good intent call, other 1
ASSLTA 611 - Dispatched and cancelled en route 1
ASSLTB 600 - Good intent call, other 2
DIAA 600 - Good intent call, other 1
EMS 600 - Good intent call, other 2
EMS 611 - Dispatched and cancelled en route 2
GRS 600 - Good intent call, other 1
INJA 611 - Dispatched and cancelled en route 1
INVO 600 - Good intent call, other 3
MISC1 611 - Dispatched and cancelled en route 2
OTHER 600 - Good intent call, other 1
PA 611 - Dispatched and cancelled en route 1
RUB 611 - Dispatched and cancelled en route 1
VEH 611 - Dispatched and cancelled en route 1
Total: 44 Total: $0 Total: 0 Total: 0
Basic Incident Type Category (FD1.21): 7 - False Alarm & False Call
FEBRUARY 2022 TYPES AND TOTALS
Cad Initial Cad Incident Type Description Basic Incident Type Code And Description (FD1.21) Number of incidents Property Loss Content Loss Acres Burned
ALRA 700 - False alarm or false call, other 1
ALRA 730 - System malfunction, other 1
ALRA 745 - Alarm system activation, no fire - unintentional 1
ALRMAN 735 - Alarm system sounded due to malfunction 1
ALRMAN 745 - Alarm system activation, no fire - unintentional 1
ALRWF 700 - False alarm or false call, other 3
ALRWF 730 - System malfunction, other 3
ALRWF 735 - Alarm system sounded due to malfunction 2
ALRWF 744 - Detector activation, no fire - unintentional 1
ALRWFR 700 - False alarm or false call, other 1
ALRWFR 730 - System malfunction, other 1
MISC1 700 - False alarm or false call, other 1
VEHL 700 - False alarm or false call, other 1
Total: 18 Total: $0 Total: 0 Total: 0
Total: 138 Total: $0 Total: 0 Total:
FEBRUARY 2022 TYPES AND TOTALS
City Council Agenda Item Report
Submitted by: Donna Aggers
Submitting Department: Police Department
Meeting Date: April 19, 2022
SUBJECT
Police Department Activity Report
Recommendation:
Receive and file the February 2022 Police Department Activity Report.
Background:
The Vernon Police Department's activity report consists of activity during the specified
reporting period, including a summary of calls for service, and statistical information regarding
arrests, traffic collisions, stored and impounded vehicles, recovered stolen vehicles, the
number of citations issued, and the number of reports filed.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Police Department Activity Report - February 2022
Type
VERNON POLICE DEPARTMENT
Department Activity Report
Jurisdiction:
First Date:
Last Date:
02/01/2022
02/28/2022
Department All Units Primary Unit
VERNON
Description
Complaint
VPD
10-6 OFFICER IS 10-6 C7,961,962,10-10, WASH, EQUIPMENT,ETC 218 213
10-96C 10-96 CHARLES (CITY HALL SECURITY CHECK)10 10
10-96H PICK UP THE JAIL PAPER WORK FROM HP JAIL 2 2
140 SUPPLEMENTAL REPORT 4 4
20001 INJURY HIT AND RUN 3 1
20002 NON-INJURY HIT AND RUN 7 4
20002R NON-INJURY HIT AND RUN REPORT 21 15
211 ROBBERY 2 1
211R ROBBERY REPORT 1 1
211S SILENT ROBBERY ALARM 4 1
215R CARJACKING REPORT 2 1
242 BATTERY 3 1
242R BATTERY REPORT 3 1
246R SHOOTING AT AN OCCUPIED DWELLING OR VEHICLE REPORT 4 1
314 INDECENT EXPOSURE 5 3
415 DISTURBING THE PEACE 60 19
417 BRANDISHING A WEAPON 3 1
422R TERRORIST THREATS REPORT 1 1
451R ARSON REPORT 1 1
459 BURGLARY 20 5
459A AUDIBLE BURGLARY ALARM 313 162
459R BURGLARY REPORT 5 2
459S SILENT BURGLARY ALARM 22 11
459V BURGLARY TO A VEHICLE 5 1
459VR BURGLARY TO A VEHICLE REPORT 6 5
470R FORGERY REPORT 2 2
476R FRAUD REPORT 9 7
484 PETTY THEFT 2 1
484R PETTY THEFT REPORT 8 4
487 GRAND THEFT 6 1
487R GRAND THEFT REPORT 14 8
586 PARKING PROBLEM 88 79
586E PARKING ENFORCEMENT 42 38
594 VANDALISM 11 4
594R VANDALISM REPORT 8 6
602 TRESPASS 36 14
647F DRUNK IN PUBLIC 5 2
901 UNKNOWN INJURY TRAFFIC COLLISION 6 2
901T INJURY TRAFFIC COLLISION 15 5
901TR INJURY TRAFFIC COLLISION REPORT 3 2
902T NON-INJURY TRAFFIC COLLISION 88 47
902TR NON-INJURY TRAFFIC COLLISION REPORT 8 5
909C TRAFFIC CONTROL 6 6
909E TRAFFIC ENFORCEMENT 5 5
909T TRAFFIC HAZARD 5 4
911 911 MISUSE / HANGUP 3 1
911A CONTACT THE REPORTING PARTY 28 18
1Page of 303/10/2022 15:31:23
Type
VERNON POLICE DEPARTMENT
Department Activity Report
Jurisdiction:
First Date:
Last Date:
02/01/2022
02/28/2022
Department All Units Primary Unit
VERNON
Description
Complaint
VPD
911NR 911 CALL NO RESPONSE REQUIRED 1 1
917A ABANDONED VEHICLE 8 5
925 SUSPICIOUS CIRCUMSTANCES 93 36
927 UNKNOWN TROUBLE 11 3
A459R ATTEMPT BURGLARY REPORT 1 1
A459VR ATTEMPT BURGLARY TO A VEHICLE REPORT 1 1
A487R ATTEMPT GRAND THEFT REPORT 2 1
AGTA ATTEMPT GRAND THEFT AUTO 2 1
ASSISTFD ASSIST FIRE DEPARTMENT 31 21
BOSIG BROKEN SIGNAL OR LIGHT 5 4
BOVEH BROKEN DOWN VEHICLE 31 19
CITCK CITATION CHECK 3 2
CIVIL CIVIL MATTER 5 4
COP COP DETAIL 6 5
DET DETECTIVE INVESTIGATION 55 34
DETAIL DETAIL 1 1
DPTAST DEPARTMENTAL ASSIST 17 7
DUI DRIVING UNDER THE INFLUENCE 3 1
FILING OFFICER IS 10-6 REPORT WRITING 124 120
FOUND FOUND PROPERTY REPORT 3 3
FU FOLLOW UP 3 3
GTA GRAND THEFT AUTO 2 1
GTAR GRAND THEFT AUTO REPORT 34 24
HBC HAILED BY A CITIZEN 14 9
ILLDPG RPT ILLEGAL DUMPING REPORT 5 2
KTP KEEP THE PEACE 2 1
LOCATE LOCATED VERNON STOLEN VEHICLE / PLATES VIA TELETYPE 4 4
LOJACK LOJACK HIT 18 11
LPR LICENSE PLATE READER 9 3
MR60 MISC REPORT 2 1
MUTUAL AID MUTUAL AID 3 1
PANIC ALARM PANIC ALARM/DURESS ALARM 10 4
PAPD PUBLIC ASSIST-POLICE 8 7
PATCK PATROL CHECK 316 283
PEDCK PEDESTRIAN CHECK 43 22
PLATE LOST OR STOLEN PLATES REPORT 8 5
PRSTRAN PRISONER TRANSPORTED 7 4
REC RECOVERED STOLEN VEHICLE IN THE FIELD 38 19
RECKLESS DRV RECKLESS DRIVING (23103)4 3
REPO REPOSSESSION 5 5
RR RAIL ROAD PROBLEM 8 5
SRMET SRMET DETAIL 59 49
TRAFFIC STOP TRAFFIC STOP 226 181
TRAINING TRAINING TEST CALL 8 6
UNATTACHEDTRUNATTACHED TRAILER 1 1
VCK VEHICLE CHECK 114 93
VEH RELEASE VEHICLE RELEASE 2 2
2Page of 303/10/2022 15:31:23
Type
VERNON POLICE DEPARTMENT
Department Activity Report
Jurisdiction:
First Date:
Last Date:
02/01/2022
02/28/2022
Department All Units Primary Unit
VERNON
Description
Complaint
VPD
VMCVIO VERNON MUNICIPAL CODE VIOLATION 4 2
WARRANT WARRANT ARREST 2 1
WELCK WELFARE CHECK 30 14
Department: 2515 1764
Overall: 2515 1764
3Page of 303/10/2022 15:31:23
VERNON POLICE DEPARTMENT
Police Activity Report
Period Ending: 2/28/22
TRAFFIC COLLISIONS NO. PROPERTY RECOVERED
TOTAL 32 VEHICLES: $301,000
NON-INJURY 22
INJURY 10
Persons Injured 10
Pedestrian 1
Fatalities 0
City Property Damage 4
Hit & Run (Felony) 1
Hit & Run (Misdemeanor) 9
VEHICLES STORED PROPERTY RECOVERED FOR
Unlicensed Driver/Impounded Vehicle 4 OTHER DEPARTMENTS
Unattached Trailer 0 VEHICLES: $145,303
Abandoned/Stored Vehicle 12
Traffic Hazard 0
CITATIONS
Citations Iss (Prisoner Release) 6
Citations Iss (Other Violations) 0
Parking 118
Hazardous 72
Non-Hazardous 28
Citations Iss (Moving) 100
Citations Iss (Total) 218
CASES CLEARED BY ARREST
AR22-016 CR22-0184 23109(A) VC
AR22-018 CR22-0274 496 PC
AR22-019 CR22-0283 487 PC
AR22-020 CR22-0283 487 PC
AR22-021 CR22-0283 487 PC
AR22-022 CR-22-0297 459 PC
AR22-023 CR22-0299 148(A)(1) PC
MALE FEMALE TOTAL
ARSON
ASSAULT
BURGLARY (& ATTEMPTED)1
CORPORAL INJURY ON SPOUSE/COHABITANT
CRIMINAL THREATS
DRIVING UNDER THE INFLUENCE w/ INJURY
EMBEZZLEMENT
GRAND THEFT: AUTO (& ATTEMPTED)
GRAND THEFT: PROPERTY (& ATTEMPTED)3
HIT/RUN
PAROLE HOLD
RESISTING/OBSTRUCTING
SEXUAL BATTERY
VANDALISM
WARRANT (VERNON)1
WARRANT (OUTSIDE AGENCY)
TOTAL FELONY ARRESTS 5 0 5
MALE FEMALE TOTAL
ASSAULT
CARRY LOADED FIREARM PERSON/VEH
DISPLAY UNLAWFUL VEH REGISTRATION
DRIVING WITH SUSPENDED LICENSE
DRUNK IN PUBLIC
DUI 1
HIT/RUN
OPERATE VEHICLE W/O INTERLOCK DEV
PETTY THEFT
POSSESSION OF NARCOTICS
POSSESSION OF PARAPHERNALIA
POSSESSION OF STOLEN PROPERTY 1
POSSESSION OF SUBT SIMILAR TO TOLUENE
RESISTING/OBSTRUCTING 1
SPEED CONTEST 1
THROW SUBSTANCE AT VEHICLE
TRESPASSING
WARRANT (OUTSIDE AGENCY)
WARRANT (VERNON)2
TOTAL MISD. ARRESTS 6 0 6
MALE FEMALE TOTAL
BURGLARY 0
CARRY LOADED FIREARM IN PUBLIC 0
ROBBERY 0
VANDALISM 0
WARRANT 0
TOTAL JUVENILES DET.0 0 0
15
10
0
25
TOTAL FELONY ARRESTS (ADULT) TO DATE:
TOTAL MISDEMEANOR ARRESTS (ADULT) TO DATE:
TOTAL JUVENILES DETAINED (FELONY AND MISDEMEANOR) TO DATE:
TOTAL ARRESTS AND DETAINED JUVENILES (FELONY AND MISDEMEANOR) TO DATE:
VERNON POLICE DEPARTMENT
REPORT FOR PERSONS ARRESTED
ADULT FELONY ARRESTS AND DISPOSITIONS
PERIOD ENDING: 2/28/2022
ADULT MISDEMEANOR ARRESTS AND DISPOSITIONS
JUVENILES DETAINED --- FELONY AND MISDEMEANOR
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/01/202202/01/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202022245801 S BOYLE AV, VERNONREPOQX LOGISTICS01:59:5702/01/2022REPORPTDepartmentOCA NumberRMS JurisVPD CR22-0169 CA0197300VPDRECORDS BUREAU*RECD02:18:2702:03:27202202022322300 E 57TH, VERNON459VRJETRO07:02:3102/01/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0170 CA0197300VPDHERNANDEZ,MIGUEL,JR*41W07:03:41 07:03:4207:51:1107:10:4020220202238S SUNOL DR // BANDINI BL, VERNON58607:48:3402/01/2022VSRPTDepartmentOCA NumberRMS JurisVPD CR22-0171 CA0197300VPDCEDENO,RUTH*2P809:04:5007:48:34202202022402300 E 57TH, VERNON140JETRO07:52:3002/01/2022SUPVPDHERNANDEZ,MIGUEL,JR*41W07:53:02 07:53:0208:05:1107:57:42202202022582930 E 54TH, VERNON476ROCEAN BREEZE11:26:4302/01/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0172 CA0197300VPDVILLEGAS,RICHARD*43W11:27:25 11:27:2611:55:2111:32:0320220202268S SUNOL DR // BANDINI BL, VERNON58612:34:0802/01/2022VSRPTDepartmentOCA NumberRMS JurisVPD CR22-0173 CA0197300VPDCEDENO,RUTH*2P813:36:1712:34:08202202022863550 E VERNON AV, VERNON484JESUS17:13:1602/01/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0174 CA0197300VPDVASQUEZ,LUIS*44E17:14:34 17:14:5918:11:0617:17:081Page of 202/02/202200:44:07
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/01/202202/01/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202022863550 E VERNON AV, VERNON484JESUS17:13:1602/01/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0174 CA0197300VPDHERNANDEZ,MIGUEL,JR41W17:14:35 17:15:0118:11:0617:17:48202202022903094 E VERNON AV, VERNONGTARFARMER JOHN18:52:2902/01/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0175 CA0197300VPD*31E18:57:50 18:58:0019:34:1519:07:15* Denotes Primary Unit2Page of 202/02/202200:44:07
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/02/202202/02/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220202328MAYWOOD AV // DISTRICT BL, VERNON20002RARMANDO 57408:16:5702/02/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0176 CA0197300VPDGODOY,RAYMOND*41E08:18:3608:26:34 08:48:4008:30:01VPDHERNANDEZ,MIGUEL,JR4308:27:3908:25:20202202023392900 S SANTA FE AV, VERNONGTARABC BIKE10:54:2202/02/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0177 CA0197300VPDGODOY,RAYMOND*41E11:42:3110:57:24VPDHERNANDEZ,MIGUEL,JR4311:18:2911:16:51202202023456326 PINE, BELLWARRANTBELL PD12:00:3702/02/2022RPT1015VPDVELEZ,MARISSA*5d3413:11:4713:58:0213:13:22VPDOURIQUE,CARLOS5D3513:13:0913:58:0213:13:23* Denotes Primary Unit1Page of 102/03/202201:09:57
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/03/202202/03/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202024024561 E 48TH, VERNONVCK08:58:4402/03/2022RPTVIDepartmentOCA NumberRMS JurisVPD CR22-0178 CA0197300VPDVASQUEZ,LUIS*4409:50:4008:58:44MR C TOWMR C TOW09:09:49 09:09:5009:50:4009:23:32202202024165080 S ALAMEDA, VERNON902T11:44:1502/03/2022RPTCITEDepartmentOCA NumberRMS JurisVPD CR22-0179 CA0197300VPDVASQUEZ,LUIS*4411:46:59 11:47:1812:34:1611:49:08VPDREDONA,BRYAN40W12:34:1612:11:4420220202423SOUTHERN // CALDEN, SOUTHGATELOCATESOUTH GATE PD14:03:4702/03/2022VREC20220202424E VERNON AV // ALCOA AV, VERNON901TRJOSE14:13:1502/03/2022RPTCITEDepartmentOCA NumberRMS JurisVPD CR22-0180 CA0197300VPDCERDA,PAUL,JR*41E14:14:23 14:14:2415:20:4814:22:52USTOWUS TOW14:59:00 14:59:0015:16:2520220202429DOWNEY RD // FRUITLAND AV, VERNON211RSARAH AGUILAR15:18:0802/03/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0181 CA0197300VPDCERDA,PAUL,JR*41E15:21:03 15:21:0416:31:5215:30:15202202024314955 EVERETT CT, VERNON20002REDRIS PLASTIC15:33:5202/03/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0182 CA0197300VPDVASQUEZ,LUIS*4415:45:09 15:45:3016:28:4515:54:59202202024381Page of 202/04/202205:53:11
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/03/202202/03/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202024382061 E 37TH, VERNONGTARCOOLBIRTH18:37:1402/03/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0183 CA0197300VPDREDONA,BRYAN*40W18:38:5319:10:5418:42:13202202024492761 FRUITLAND AV, VERNON246RIRIS21:39:2802/03/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0185 CA0197300VPDESTRADA,IGNACIO*S222:46:3521:40:25VPDGODOY,RAYMOND31W21:46:2323:29:0522:24:58VPDMACIEL,CYNTHIA3221:46:2221:47:07VPDMANNINO,NICHOLAS43E21:42:0522:23:0021:46:1820220202450LEONIS BL // PACIFIC BL, VERNONTRAFFIC STOP21:47:4302/03/20221015RPTVSDepartmentOCA NumberRMS JurisVPD CR22-0184 CA0197300VPDMACIEL,CYNTHIA*3222:44:1321:47:44VPDGODOY,RAYMOND31W21:48:0022:24:5421:48:02USTOWUS TOW22:08:06 22:08:2122:22:4422:14:55* Denotes Primary Unit2Page of 202/04/202205:53:11
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/04/202202/04/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202024684201 FRUITLAND AV, VERNONREPOSOUTHLAND PAPER BOX05:13:0102/04/2022REPODepartmentOCA NumberRMS JurisVPD CR22-0186 CA0197300VPDRECORDS BUREAU*RECD06:20:4406:06:21202202024922939 BANDINI BL, VERNONSRMET10:46:5602/04/2022METRPTDepartmentOCA NumberRMS JurisVPD CR22-0187 CA0197300VPDOURIQUE,CARLOS/FLORES,TERESA*MET112:57:0710:46:56202202025114375 BANDINI BL, VERNONRECHOUSEHOLD PRODUCTS17:54:1702/04/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0188 CA0197300VPDREDONA,BRYAN*31E17:56:2019:16:3418:01:4720220202526MINERVA // 26TH, VERNONREC21:32:5202/04/2022RPTVRECDepartmentOCA NumberRMS JurisVPD CR22-0189 CA0197300VPDESTRADA,IGNACIO*S221:38:5621:32:52VPDMANNINO,NICHOLAS44W21:32:5522:02:1921:33:24MR C TOWMR C TOW21:35:34 21:35:3522:02:2121:45:13202202025274305 S SANTA FE AV, VERNONFOUNDVERNON POLICE22:02:3702/04/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0190 CA0197300VPDARANA,ANDRE*32E23:56:4922:02:41* Denotes Primary Unit1Page of 102/05/202205:14:44
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/05/202202/05/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220202536S SANTA FE AV // 51ST, VERNONREC00:16:3802/05/2022VRECSOWCITEDepartmentOCA NumberRMS JurisVPD CR22-0191 CA0197300VPDMANNINO,NICHOLAS*44W01:40:4700:16:38VPDLUCAS,JASON2200:18:3401:16:5200:21:48VPDARANA,ANDRE32E00:16:4000:40:3300:19:00202202025374755 E 49TH, VERNONGTARH AND M POULTRY00:37:1302/05/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0192 CA0197300VPDARANA,ANDRE*32E00:41:4102:48:0100:45:27VPDESTRADA,IGNACIOS200:58:3001:27:0201:10:2120220202565VERNON //SANTA FE, VERNON20002RT-Mobile USA 888-662-4662 opt 411:21:0402/05/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0193 CA0197300VPDREDONA,BRYAN*20W11:21:2511:50:3211:25:1420220202577LEONIS BL // SOTO, VERNON902TT-Mobile USA 888-662-4662 opt 413:45:1802/05/2022RPTVIDepartmentOCA NumberRMS JurisVPD CR22-0194 CA0197300VPDCERDA,EUGENIO*40E13:46:25 13:46:2715:18:0714:02:11VPDMACIEL,CYNTHIA31W15:18:2014:10:41VPDFLORES,TERESA32E14:30:3713:55:47VPDCERDA,PAUL,JR4114:15:3913:47:05202202025793435 E VERNON AV, VERNON20002RELITE FLOWER15:16:0402/05/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0195 CA0197300VPDCERDA,EUGENIO*40E15:19:0016:15:2815:25:34202202025811Page of 202/06/202205:59:22
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/05/202202/05/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202025813049 E VERNON AV, VERNONGTAR16:03:1102/05/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0196 CA0197300VPDMACIEL,CYNTHIA*31W16:38:3416:06:57* Denotes Primary Unit2Page of 202/06/202205:59:22
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/06/202202/06/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202026253650 E 26TH, VERNONWELCKUNK02:44:1002/06/20221015VIRPTDepartmentOCA NumberRMS JurisVPD CR22-0198 CA0197300VPDARANA,ANDRE*38W02:45:37 02:45:3803:15:0102:48:20VPDMADRIGAL,ALFONSO32E02:58:2905:22:0703:01:39VPDMANNINO,NICHOLAS4404:25:2103:01:40VPDCROSS,JEREMYS303:16:0302:48:34202202026274433 PACIFIC BL, VERNONVCKUNK03:16:1602/06/2022VSDepartmentOCA NumberRMS JurisVPD CR22-0197 CA0197300VPDCROSS,JEREMY*S303:59:0403:16:17VPDARANA,ANDRE38W04:33:1003:28:53202202026614305 S SANTA FE AV, VERNON20002R14:33:0402/06/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0199 CA0197300VPDMACIEL,CYNTHIA*40W14:33:0815:17:0714:38:44* Denotes Primary Unit1Page of 102/07/202205:12:25
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/07/202202/07/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202027124305 S SANTA FE AV, VERNONFOUND07:32:0002/07/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0200 CA0197300VPDFLORES,TERESA*20W07:32:5207:46:0007:32:53202202027455477 DOWNEY RD, VERNON459RJ & J SNACK FOODS11:46:0902/07/2022RPTVRECDepartmentOCA NumberRMS JurisVPD CR22-0202 CA0197300VPDMACIEL,CYNTHIA*38E11:48:54 11:48:5514:08:3412:00:06VPDGODOY,RAYMOND32E14:08:3412:45:24202202027484325 FURLONG PL, VERNON415DORA DOUGLAS12:12:5502/07/2022VOIDDepartmentOCA NumberRMS JurisVPD CR22-0201 CA0197300VPDVASQUEZ,LUIS*4112:14:4712:44:4912:20:13VPDFLORES,TERESA20W12:14:5612:47:5512:16:25VPDHERNANDEZ,MIGUEL,JR44W12:15:2012:44:3812:19:22VPDTechnology,InformationS712:47:5512:19:48202202027534620 S SANTA FE AV, VERNON902TPAUL WILEY13:21:0402/07/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0203 CA0197300VPDHERNANDEZ,MIGUEL,JR*44W13:22:5214:05:2913:24:41* Denotes Primary Unit1Page of 102/08/202201:06:34
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/08/202202/08/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202027922300 E 57TH, VERNONREPOUNK04:13:5002/08/2022REPODepartmentOCA NumberRMS JurisVPD CR22-0204 CA0197300VPDRECORDS BUREAU*RECD04:35:5404:17:4120220202798S SOTO // 26TH, VERNONLPR07:12:1902/08/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0205 CA0197300VPD CR22-0206 CA0197300VPDGAYTAN,LORENZO*S708:01:2207:16:36VPDGODOY,RAYMOND32W08:01:2507:17:58VPDHERNANDEZ,MIGUEL,JR40E08:24:5307:18:45VPDVILLEGAS,RICHARD41E08:01:2907:19:04VPDVASQUEZ,LUIS44W07:16:4008:24:4307:19:0620220202828S 2ND // ANDERSON, VERNONILLDPG RPT12:47:2902/08/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0207 CA0197300VPDVASQUEZ,LUIS*44W12:47:49 12:48:0613:20:4612:53:46202202028304560 LOMA VISTA AV, VERNON58613:17:5402/08/2022VSCITEDepartmentOCA NumberRMS JurisVPD CR22-0210 CA0197300VPDCEDENO,RUTH*2P814:22:1013:17:54202202028315925 ALCOA AV, VERNONPLATE13:25:0102/08/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0208 CA0197300VPD CR22-0209 CA0197300VPDVILLEGAS,RICHARD*41E13:30:0214:22:3213:35:47VPDGODOY,RAYMOND32W14:46:4413:42:43VPDVASQUEZ,LUIS44W13:41:0914:22:2813:59:15202202028431Page of 202/09/202200:43:23
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/08/202202/08/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202028435000 PACIFIC BL, VERNON594RWHOLE FOODS19:55:3602/08/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0211 CA0197300VPDMADRIGAL,ALFONSO*32W19:57:14 19:57:2620:29:2220:11:34* Denotes Primary Unit2Page of 202/09/202200:43:23
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/09/202202/09/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202028825401 DOWNEY RD, VERNON140J AND J SNACK FOODS08:12:5902/09/2022SUPVPDCERDA,PAUL,JR*43E08:15:10 08:15:3208:44:4908:34:29202202028832856 LEONIS BL, VERNON901T08:48:0202/09/2022RPTVSDepartmentOCA NumberRMS JurisVPD CR22-0212 CA0197300VPDCERDA,PAUL,JR*43E10:03:0008:49:43VPDGODOY,RAYMOND32E08:49:4809:08:4908:55:12VPDHERNANDEZ,MIGUEL,JR41W08:49:4510:03:0008:51:46VPDVASQUEZ,LUIS44W09:23:5608:51:30MR C TOWMR C TOW09:04:42 09:04:4210:03:0009:17:18202202028903023 NEVADA AVE, EL MONTELOCATELASO TEMPLE09:51:3402/09/2022VRECVPDGODOY,RAYMOND*32E10:03:3110:03:33202202028915681 DOWNEY RD, VERNON487RSPRINT09:58:2702/09/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0213 CA0197300VPDVASQUEZ,LUIS*44W10:00:3610:02:10VPDGODOY,RAYMOND32E10:03:3610:52:1310:11:39202202029095207 DOWNEY RD, VERNONGTARLUCKY PICTURE13:45:0602/09/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0214 CA0197300VPDGODOY,RAYMOND*32E13:47:42 13:48:1715:03:1813:58:09202202029165207 DOWNEY RD, VERNONREC16:46:0902/09/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0215 CA0197300VPDCERDA,PAUL,JR*43E16:46:49 16:47:2116:51:181Page of 202/10/202200:23:15
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/09/202202/09/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202029165207 DOWNEY RD, VERNONREC16:46:0902/09/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0215 CA0197300VPDHERNANDEZ,MIGUEL,JR41W16:50:5217:38:0717:00:38MR C TOWMR C TOW17:23:51 17:24:0317:52:4317:28:30* Denotes Primary Unit2Page of 202/10/202200:23:15
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/10/202202/10/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220202948405 FWY // 710 FWY, VERNONLOCATECHP / KRUGER TOW03:53:4202/10/2022VREC20220202949LOMA VISTA AV // 48TH, VERNONVCK03:55:0502/10/2022RPTVIDepartmentOCA NumberRMS JurisVPD CR22-0216 CA0197300VPD CR22-0217 CA0197300VPDFLORES,TERESA*3204:50:1703:55:05USTOWUS TOW04:05:59 04:06:0304:50:1704:19:5220220202958E VERNON AV // BOYLE AV, VERNON90107:30:4302/10/2022RPTVSDepartmentOCA NumberRMS JurisVPD CR22-0218 CA0197300VPDCERDA,EUGENIO*44E07:31:59 07:31:5909:03:1007:34:25VPDVASQUEZ,LUIS4107:32:3008:49:1107:36:04VPDCERDA,PAUL,JR43W08:45:3207:38:00MR C TOWMR C TOW07:42:19 07:42:3108:47:2107:59:5020220202964S SOTO // 37TH, VERNON901TDAVID09:11:0702/10/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0219 CA0197300VPDCERDA,EUGENIO*44E09:12:23 09:12:3109:41:5809:13:55VPDCERDA,PAUL,JR43W09:24:0609:17:19202202029844575 LOMA VISTA AV, VERNONGTARYAIR RAMOS15:57:5802/10/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0220 CA0197300VPDCERDA,EUGENIO*44E16:03:19 16:08:2317:06:2816:15:01* Denotes Primary Unit1Page of 102/11/202204:59:17
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/11/202202/11/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220203004SEVILLE AV // LEONIS BL, VERNON902TAMPARO05:41:1802/11/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0221 CA0197300VPDLUCAS,JASON*22W05:44:1706:34:0505:46:31VPDMANNINO,NICHOLAS40E06:19:2305:52:36VPDSANTOS,DANIELS105:50:3006:27:4105:53:36202202030104100 BANDINI BL, VERNON902TGIUMARA CO07:08:2502/11/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0222 CA0197300VPDVASQUEZ,LUIS*32E07:09:23 07:10:1108:03:5607:22:3420220203020S SANTA FE AV // VERNON AV, VERNON902TADRIAN08:47:0002/11/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0223 CA0197300VPDCERDA,EUGENIO*41W08:51:1809:26:5608:54:20202202030233030 S ATLANTIC BL, VERNON902TSTEPHANIE09:14:1202/11/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0224 CA0197300VPDVASQUEZ,LUIS*32E09:15:25 09:19:0009:55:0509:23:0220220203036S ALAMEDA // VERNON AV, VERNON20002RSAMSON12:23:5402/11/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0225 CA0197300VPDCERDA,EUGENIO*41W12:24:42 12:38:3013:19:0012:38:40202202030372600 S SOTO, VERNON459VRJC SALES13:20:4902/11/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0226 CA0197300VPDVASQUEZ,LUIS*32E13:22:31 13:23:0714:54:0213:28:11202202030391Page of 202/12/202204:41:51
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/11/202202/11/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202030394293 BANDINI BL, VERNON459VRTRIPLE BARGAIN WHOLESALE14:29:3002/11/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0227 CA0197300VPDCERDA,PAUL,JR*4314:42:35 14:42:3615:43:2514:59:02* Denotes Primary Unit2Page of 202/12/202204:41:51
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/12/202202/12/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202030632575 S SANTA FE AV, VERNON459ACIRCLE K01:44:2102/12/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0228 CA0197300VPDLUCAS,JASON*22W01:45:4702:19:4901:51:40VPDSALDANA,CARLOS1Z802:19:5701:58:03VPDMANNINO,NICHOLAS40E01:51:5702:19:5201:52:51VPDHERNANDEZ,EDWARD4401:46:1202:19:5401:51:20VPDCROSS,JEREMYS302:20:0201:52:12202202031163056 BANDINI BL, VERNONRECLA TRUCK AND TRAILER21:54:2502/12/2022VRECVPDARANA,ANDRE*38E21:59:5022:40:4922:02:05VPDMANNINO,NICHOLAS40W22:26:4922:04:36USTOWUS TOW22:08:31 22:08:3322:40:5122:22:18* Denotes Primary Unit1Page of 102/13/202205:02:47
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/13/202202/13/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202031324609 HAMPTON, VERNONRECCALIFORNIA FEATHER05:16:4502/13/2022RPTVRECDepartmentOCA NumberRMS JurisVPD CR22-0229 CA0197300VPDSALDANA,CARLOS*4406:03:4405:16:45202202031404305 S SANTA FE AV, VERNONPLATE08:52:5202/13/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0230 CA0197300VPDHERNANDEZ,MIGUEL,JR*3209:46:0808:55:04202202031453308 BANDINI BL, VERNON459VRVERNON TRUCK WASH11:17:1902/13/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0231 CA0197300VPDCERDA,PAUL,JR*4011:18:09 11:18:1011:18:49VPDFLORES,TERESA3111:18:4712:17:2811:27:19202202031465208 S SANTA FE AV, VERNONGTARBA FURNITURE11:22:0402/13/2022VRECRPTDepartmentOCA NumberRMS JurisVPD CR22-0232 CA0197300VPDCERDA,PAUL,JR*4011:26:00 11:26:0011:30:48VPDHERNANDEZ,MIGUEL,JR3212:27:5011:30:37VPDONOPA,DANIELS511:43:5111:58:0711:51:09202202031663278 E SLAUSON AV, VERNON211AMPM18:23:5602/13/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0233 CA0197300VPDFLORES,TERESA*3118:25:1119:21:1618:27:21VPDCERDA,PAUL,JR4018:25:5518:50:4018:27:31202202031933390 E SLAUSON AV, VERNONRECUNK23:07:5802/13/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0234 CA0197300VPDCROSS,JEREMY*S300:26:4423:07:59VPDMADRIGAL,ALFONSO41E23:08:01 23:08:0200:26:4423:09:541Page of 202/14/202204:47:09
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/13/202202/13/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202031933390 E SLAUSON AV, VERNONRECUNK23:07:5802/13/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0234 CA0197300VPDSALDANA,CARLOS44W23:12:1600:18:4623:16:32* Denotes Primary Unit2Page of 202/14/202204:47:09
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/14/202202/14/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220203215S SUNOL DR // BANDINI BL, VERNON58607:59:0802/14/2022VSRPTCITEDepartmentOCA NumberRMS JurisVPD CR22-0236 CA0197300VPDCEDENO,RUTH*2P809:18:2007:59:0820220203217E 49TH // SANTA FE AV, VERNONREC08:10:2902/14/2022VRECRPTDepartmentOCA NumberRMS JurisVPD CR22-0235 CA0197300VPDFLORES,TERESA*31W08:42:1908:10:29202202032234340 E DISTRICT BL, VERNON459RPASHA MERCHANTS09:10:0402/14/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0237 CA0197300VPDHERNANDEZ,MIGUEL,JR*44E09:11:49 09:11:5010:33:1109:21:00VPDGODOY,RAYMOND32E09:21:5409:50:4809:26:58VPDMACIEL,CYNTHIA41W09:21:4109:50:4309:37:31202202032325981 MALBURG WY, VERNON484RDELUXE LA10:42:0502/14/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0238 CA0197300VPDHERNANDEZ,MIGUEL,JR*44E10:43:44 10:44:1411:17:3310:48:40VPDFLORES,TERESA31W10:44:4511:11:1010:51:00VPDGODOY,RAYMOND32E10:44:5911:17:3310:49:01VPDMACIEL,CYNTHIA41W10:43:46 10:44:1611:03:0610:53:53202202032404444 AYERS AV, VERNONGTARLA CURACAO11:44:1402/14/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0239 CA0197300VPD CR22-0240 CA0197300VPDHERNANDEZ,MIGUEL,JR*44E11:45:0912:27:1511:54:25VPDMACIEL,CYNTHIA41W13:22:0012:26:18202202032511Page of 202/15/202200:25:14
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/14/202202/14/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220203251S SOTO // VERNON AV, VERNON20001AT&T MOBILITY 800 635 6840 413:21:3502/14/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0241 CA0197300VPDMACIEL,CYNTHIA*41W13:22:0414:11:0613:24:39VPDFLORES,TERESA31W13:22:2214:06:2413:24:29VPDGODOY,RAYMOND32E13:22:0813:56:1213:33:20202202032613056 BANDINI BL, VERNONRECLA TRUCK15:52:5502/14/2022VRECRPTDepartmentOCA NumberRMS JurisVPD CR22-0242 CA0197300VPDGODOY,RAYMOND*32E15:57:0917:44:0616:04:10VPDMACIEL,CYNTHIA41W16:04:1516:19:0716:09:1520220203270E 50TH // CORONA AV, VERNONREC20:04:4502/14/2022VRECRPTDepartmentOCA NumberRMS JurisVPD CR22-0243 CA0197300VPD*26E20:06:0320:30:4520:11:13202202032731250 E CHAPMAN, FULLERTONLOCATEANAHEIM FULLERTON TOW20:54:5202/14/2022VRECVPDRECORDS BUREAU*RECD21:45:4020:56:29* Denotes Primary Unit2Page of 202/15/202200:25:14
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/15/202202/15/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202033046011 MALBURG WY, VERNON459VRENVIROCLEAN07:35:2302/15/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0244 CA0197300VPDVILLEGAS,RICHARD*4107:37:04 07:37:1308:51:3307:39:03202202033084412 PACIFIC BL, VERNONGTARUNK08:24:3202/15/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0245 CA0197300VPDHERNANDEZ,MIGUEL,JR*32W09:26:2408:24:32202202033094955 MAYWOOD AV, VERNONGTAR08:39:5702/15/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0246 CA0197300VPDVELEZ,MARISSA*5D3409:01:2510:08:5809:07:36VPDENCINAS,ANTHONY5D3110:08:5809:07:37VPDSWINFORD,PHILLIP5D3209:01:3710:08:5809:07:3720220203315ROSS // 37TH, VERNON20002R09:28:2902/15/2022RPTCITYDepartmentOCA NumberRMS JurisVPD CR22-0247 CA0197300VPDGODOY,RAYMOND*31E09:35:1809:36:08VPDHERNANDEZ,MIGUEL,JR32W09:35:5810:07:42202202033292323 E 52D, VERNONGTARUNK14:08:3102/15/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0248 CA0197300VPDHERNANDEZ,MIGUEL,JR*32W15:50:3514:10:3420220203332FRUITLAND AV // GIFFORD AV, VERNONGTARLETICIA YBARRA15:15:4102/15/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0249 CA0197300VPDGODOY,RAYMOND*31E15:15:5416:00:0915:24:19202202033341Page of 202/16/202201:18:47
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/15/202202/15/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220203334LEONIS BL // PACIFIC BL, VERNONPLATEJORGE SANTA15:44:4402/15/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0250 CA0197300VPDVILLEGAS,RICHARD*4115:45:2515:50:46VPDHERNANDEZ,MIGUEL,JR32W16:31:35 16:35:4915:50:44202202033354305 S SANTA FE AV, VERNONMR6016:30:0302/15/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0251 CA0197300VPDHERNANDEZ,MIGUEL,JR*32W16:31:4716:31:38VPDSWINFORD,PHILLIP5D3216:31:4116:31:1920220203338501 S LA VERN, VERNONLOCATECHP17:18:4502/15/2022VRECVPDRECORDS BUREAU*RECD20:27:5420:12:2720220203344FRUITLAND AV // CUDAHY, VERNONREC21:34:4502/15/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0252 CA0197300VPDMADRIGAL,ALFONSO*26E22:31:1621:34:45* Denotes Primary Unit2Page of 202/16/202201:18:47
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/16/202202/16/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202033662042 E VERNON AV, VERNON594RELCO LIGHTING07:43:2102/16/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0253 CA0197300VPD*32W07:44:57 07:45:2007:45:29VPDCERDA,PAUL,JR41W07:45:2608:17:2607:48:00202202033774442 E 26TH, VERNON487RPEERLESS MATERIAL09:55:3402/16/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0254 CA0197300VPDVASQUEZ,LUIS*44E09:56:35 10:02:4210:29:3710:04:0520220203389DOWNEY RD // DISTRICT BL, VERNON902TSANTIAGO12:02:0602/16/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0255 CA0197300VPDVASQUEZ,LUIS*44E12:03:15 12:03:3612:54:5212:07:36202202033931995 E 20TH, LOS ANGELESLOCATELAPD NEWTON13:55:0602/16/2022VREC20220203403E 26TH // SIERRA PINE AV, VERNON902TTONY16:26:4302/16/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0256 CA0197300VPDCERDA,PAUL,JR*41W16:34:09 16:34:1016:38:05VPDHERNANDEZ,MIGUEL,JR40E16:48:2616:48:23VPDVASQUEZ,LUIS44E16:38:2617:30:2916:39:01* Denotes Primary Unit1Page of 102/17/202204:44:07
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/17/202202/17/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202034242465 E VERNON AV, VERNONRECLUCKY VASE02:16:1202/17/2022VRECRPTDepartmentOCA NumberRMS JurisVPD CR22-0257 CA0197300VPDFLORES,TERESA*31W02:52:5602:16:12VPDESCOBEDO,ALEXY32E02:17:4002:35:5402:19:05VPDHERNANDEZ,EDWARD4002:16:1502:35:5602:18:19MR C TOWMR C TOW02:25:21 02:25:5202:52:5902:35:49202202034335215 S BOYLE AV, VERNON901TR07:06:5002/17/2022ORRPTRPCBDepartmentOCA NumberRMS JurisVPD CR22-0258 CA0197300VPDVASQUEZ,LUIS*4307:08:25 07:10:1108:14:3107:10:18VPDCERDA,PAUL,JR41E07:08:5108:23:3507:38:12USTOWUS TOW07:31:06 07:31:0708:23:3507:43:4920220203460LEONIS BL // PACIFIC BL, VERNON901TT-Mobile USA 888-662-4662 opt 415:15:4302/17/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0259 CA0197300VPDCERDA,PAUL,JR*41E15:18:0115:50:5415:20:26VPDREDONA,BRYAN32W15:21:3315:50:5415:23:54VPDVASQUEZ,LUIS4315:21:1115:50:5515:22:19VPDHERRERA,GUSTAVOL215:33:5015:20:22202202034731945 E 55TH, VERNON487RAPPLE FABRICS22:20:5602/17/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0260 CA0197300VPDNEWTON,TODD*4322:32:5522:21:23* Denotes Primary Unit1Page of 102/18/202204:59:24
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/18/202202/18/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202034784675 52D DR, VERNON S/A 115415LILAH NATOLES02:55:0802/18/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0261 CA0197300VPDNEWTON,TODD*4302:56:0203:33:0503:03:48VPDLUCAS,JASON22E03:28:2303:33:01VPDESCOBEDO,ALEXY32W02:56:0403:33:0302:58:56VPDESTRADA,IGNACIOS203:29:3303:05:00202202034822877 E 44TH, VERNONREPO05:45:3302/18/2022REPORPTDepartmentOCA NumberRMS JurisVPD CR22-0262 CA0197300VPDRECORDS BUREAU*RECD08:05:1805:54:5220220203489S ATLANTIC BL // BANDINI BL, VERNON902TT-Mobile USA 888-662-4662 opt 407:29:2802/18/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0263 CA0197300VPDREDONA,BRYAN*41E07:30:54 07:30:5708:02:5907:33:19202202034954215 EXCHANGE AV, VERNONGTARKING MEATS08:36:1502/18/2022RPCBRPTDepartmentOCA NumberRMS JurisVPD CR22-0264 CA0197300VPDREDONA,BRYAN*41E08:44:2310:38:1708:49:17202202035063385 LEONIS BL, VERNON476R11:02:3702/18/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0265 CA0197300VPDMADRIGAL,ALFONSO*3111:03:26 11:03:3111:19:36VPDREDONA,BRYAN41E11:04:5212:36:3011:11:33202202035132775 E 26TH, VERNONAGTASTERICYCLE12:34:0002/18/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0267 CA0197300VPDMADRIGAL,ALFONSO*3112:36:1612:37:38VPDCERDA,PAUL,JR44W12:37:3713:20:5112:46:301Page of 202/19/202205:32:24
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/18/202202/18/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220203514S SOTO // 44TH, VERNON902T12:38:3902/18/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0266 CA0197300VPDREDONA,BRYAN*41E12:39:45 12:39:4613:11:5212:41:28VPDMADRIGAL,ALFONSO3113:11:5312:42:01202202035223851 S SOTO, VERNONA487RCONCENTRA13:59:5302/18/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0268 CA0197300VPDMADRIGAL,ALFONSO*3114:02:32 14:18:0114:41:2114:19:43VPDCERDA,PAUL,JR44W14:03:1614:42:1714:09:12202202035433200 E WASHINGTON BL, VERNONRECUNK20:32:0002/18/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0269 CA0197300VPDSALDANA,CARLOS*40E21:30:0220:32:00* Denotes Primary Unit2Page of 202/19/202205:32:24
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/19/202202/19/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202035543031 E VERNON AV, VERNON20002AMPM01:24:1102/19/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0271 CA0197300VPDNEWTON,TODD*43W01:25:57 01:25:5801:54:3301:30:55202202035692825 E 54TH, VERNONREC08:13:2902/19/2022RPTVRECVSDepartmentOCA NumberRMS JurisVPD CR22-0272 CA0197300VPDFLORES,TERESA*4309:16:3508:13:29202202035722357 E SLAUSON AV, VERNONREC08:52:4302/19/2022VRECRPTVSDepartmentOCA NumberRMS JurisVPD CR22-0273 CA0197300VPDCERDA,EUGENIO*4408:54:51 08:54:5309:43:4408:58:55202202035854414 PACIFIC BL, VERNONRECT-Mobile USA 888-662-4662 opt 413:20:1502/19/2022VRECRPTVPDFLORES,TERESA*4313:23:1914:23:2213:27:10* Denotes Primary Unit1Page of 102/20/202205:51:35
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/20/202202/20/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220203632BANDINI BL // ATLANTIC BL, VERNONILLDPG RPTMICHAEL CORTEZ07:15:5002/20/2022RPTVREC1015DepartmentOCA NumberRMS JurisVPD CR22-0274 CA0197300VPD CR22-0275 CA0197300VPD*41E07:18:38 07:19:1411:56:0607:28:33VPDMACIEL,CYNTHIA43W07:40:0410:11:0907:47:56VPDCERDA,EUGENIO4407:18:40 07:19:1511:48:0507:32:03VPDVILLEGAS,RICHARDXS10:14:1407:40:02* Denotes Primary Unit1Page of 102/21/202204:55:01
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/21/202202/21/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220203675E DISTRICT BL // CORONA AV, VERNON902TCITY CREW - ARMANDO05:18:5102/21/2022RPTCITYDepartmentOCA NumberRMS JurisVPD CR22-0276 CA0197300VPDSALDANA,CARLOS*41E05:21:51 05:22:0705:54:5605:26:26VPDMADRIGAL,ALFONSO43W05:51:4805:25:1720220203690S SOTO // 26TH, VERNONREC07:05:5902/21/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0277 CA0197300VPDMACIEL,CYNTHIA*32W08:10:0207:09:57VPDFLORES,TERESA31E07:13:2407:41:5607:17:22VPDGODOY,RAYMOND40W07:13:2607:36:4307:18:13VPDHERNANDEZ,MIGUEL,JR41E07:14:0007:36:4407:18:15VPDSWINFORD,PHILLIP5D3207:38:1207:18:49VPDOURIQUE,CARLOS5D3507:38:1307:18:49202202037023239 E 46TH, VERNON58608:46:5102/21/2022VSDepartmentOCA NumberRMS JurisVPD CR22-0278 CA0197300VPDCEDENO,RUTH*2P809:50:1408:46:57202202037084310 BANDINI BL, VERNONFOUNDRYERSON09:19:1902/21/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0279 CA0197300VPDFLORES,TERESA*31E09:20:3209:49:4109:25:17202202037102700 FRUITLAND AV, VERNON476RGAVINA09:57:5802/21/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0281 CA0197300VPDGODOY,RAYMOND*40W10:30:59 10:31:3011:50:4910:36:22202202037194305 S SANTA FE AV, VERNONFILING11:17:1002/21/2022VOID1098DepartmentOCA NumberRMS JurisVPD CR22-0280 CA01973001Page of 202/22/202201:12:33
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/21/202202/21/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202037194305 S SANTA FE AV, VERNONFILING11:17:1002/21/2022VOID1098DepartmentOCA NumberRMS JurisVPD CR22-0280 CA0197300VPDFLORES,TERESA*31E12:05:5711:17:1020220203735E 45TH // PACIFIC BL, VERNON487RROSA RODRIGUEZ16:02:0102/21/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0282 CA0197300VPDMACIEL,CYNTHIA*32W16:03:37 16:03:5616:07:56 16:31:3716:05:19VPDFLORES,TERESA43E16:31:3716:09:5420220203740MAYWOOD AV // FRUITLAND AV, VERNON487MARCO16:53:0102/21/20221015RPTVIDepartmentOCA NumberRMS JurisVPD CR22-0283 CA0197300VPDFLORES,TERESA*43E16:56:3420:13:0916:57:25VPDMACIEL,CYNTHIA32W16:56:3620:18:4617:00:34VPDMADRIGAL,ALFONSO3820:05:0819:04:55VPDGODOY,RAYMOND40W19:57:1717:01:00VPDLANDA,RAFAEL44W21:19:3419:55:47VPDVILLEGAS,RICHARDXS16:59:1318:59:4817:07:0320220203753FRUITLAND AV // PACIFIC BL, VERNON451RT-Mobile USA 888-662-4662 opt 423:19:0802/21/2022RPTVIDepartmentOCA NumberRMS JurisVPD CR22-0284 CA0197300VPDHERNANDEZ,EDWARD*40E23:20:21 23:20:2200:18:2523:22:08* Denotes Primary Unit2Page of 202/22/202201:12:33
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/22/202202/22/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202037582462 E 28TH, VERNONREC01:26:5302/22/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0285 CA0197300VPDLANDA,RAFAEL*44W02:17:3501:26:53202202037754553 SEVILLE AV, VERNONPLATE08:55:1002/22/2022RPTVPDVASQUEZ,LUIS*43W09:21:5908:55:11202202037804120 BANDINI BL, VERNONGTARSOUTHWEST TREATMENT10:16:3702/22/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0286 CA0197300VPDGODOY,RAYMOND*32E10:20:5311:16:4010:27:1620220203782E 37TH // SANTA FE AV, VERNONGTARTAMMY SUPRENANT10:51:2702/22/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0287 CA0197300VPDVILLEGAS,RICHARD*4415:15:42 15:15:4316:48:5811:00:38202202037882221 E 55TH, VERNON487R13:31:3402/22/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0288 CA0197300VPDGODOY,RAYMOND*32E13:41:4613:47:10VPDVASQUEZ,LUIS43W13:47:4014:28:0113:52:2020220203791DOWNEY RD // LEONIS BL, VERNON422REDWIN LARA14:30:5202/22/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0289 CA0197300VPDVASQUEZ,LUIS*43W14:32:27 14:32:4815:59:3815:00:55202202038014535 S SOTO, VERNON901T-Mobile USA 888-662-4662 opt 419:37:1002/22/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0290 CA01973001Page of 202/23/202200:52:14
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/22/202202/22/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202038014535 S SOTO, VERNON901T-Mobile USA 888-662-4662 opt 419:37:1002/22/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0290 CA0197300VPD*40W19:39:0520:17:0419:41:30VPDNEWTON,TODD3220:17:0320:06:11VPDESTRADA,IGNACIOS220:17:0419:42:28* Denotes Primary Unit2Page of 202/23/202200:52:14
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/23/202202/23/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202038123805 S SOTO, VERNON484RCONCENTRA03:42:1802/23/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0291 CA0197300VPDLANDA,RAFAEL*44E03:44:24 03:44:4004:03:2003:51:32VPDNEWTON,TODD3204:18:1103:58:52* Denotes Primary Unit1Page of 102/24/202201:25:07
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/24/202202/24/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202039102634 E 26TH, VERNON902TOSEGUERA TRUCKING08:35:1302/24/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0293 CA0197300VPDCAM,PATRICK*40E08:36:25 08:36:5008:50:30VPDREDONA,BRYAN31W08:50:21 08:37:2608:50:28 09:28:2308:40:0120220203911SEVILLE AV // 37TH, VERNONGTARBYRON VEGA08:53:3002/24/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0292 CA0197300VPDCERDA,PAUL,JR*44W08:56:0710:23:1808:56:16* Denotes Primary Unit1Page of 102/25/202203:36:54
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/25/202202/25/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202039564305 S SANTA FE AV, VERNONLOCATEVERNON POLICE01:18:4602/25/2022VRECVPDRECORDS BUREAU*RECD03:07:5401:21:00202202039575252 S ALAMEDA, VERNONREPOPEKING NOODLE01:49:0102/25/2022REPODepartmentOCA NumberRMS JurisVPD CR22-0294 CA0197300VPDRECORDS BUREAU*RECD03:25:5703:14:23202202039723500 E WASHINGTON BL, VERNONA459R09:07:5502/25/2022RPTCITYDepartmentOCA NumberRMS JurisVPD CR22-0295 CA0197300VPDREDONA,BRYAN*4109:11:36 09:11:5310:03:4109:17:5020220204000DOWNEY RD // WASHINGTON BL, VERNON902T17:03:0202/25/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0296 CA0197300VPDREDONA,BRYAN*4117:23:2117:03:09202202040122833 LEONIS BL, VERNON S/A 115459MALBURG BUILDING21:26:3702/25/20221015RPTDepartmentOCA NumberRMS JurisVPD CR22-0297 CA0197300VPDNEWTON,TODD*4421:27:4522:21:3821:33:59VPDARANA,ANDRE31W23:09:4621:31:36VPDMANNINO,NICHOLAS32E21:29:5523:45:0921:31:33VPDSALDANA,CARLOS4121:27:4723:09:4821:35:40VPDCROSS,JEREMYS322:59:1521:35:50* Denotes Primary Unit1Page of 102/26/202204:49:49
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/26/202202/26/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202040252443 E 27TH, VERNON459VA NOOHI00:21:5002/26/20221015RPTDepartmentOCA NumberRMS JurisVPD CR22-0299 CA0197300VPDARANA,ANDRE*31W00:24:1701:18:0800:26:12VPDMANNINO,NICHOLAS32E00:52:5700:28:15VPDSALDANA,CARLOS4101:16:3600:41:46VPDNEWTON,TODD4400:24:2000:37:0400:26:52VPDCROSS,JEREMYS301:18:0801:05:3920220204026S SANTA FE AV // FRUITLAND AV, VERNONBOVEH00:37:3202/26/2022RPTVSDepartmentOCA NumberRMS JurisVPD CR22-0298 CA0197300VPDNEWTON,TODD*4400:56:5700:37:33VPDSALDANA,CARLOS4100:41:3900:41:2620220204035GRANDE VISTA AV // WASHINGTON BL, VERNON902TAT&T MOBILITY 800 635 6840 407:17:5602/26/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0300 CA0197300VPD*4007:21:0208:30:3407:22:45VPDFLORES,TERESA3208:32:5207:24:47VPDSALDANA,CARLOS4107:29:0207:23:49VPDMACIEL,CYNTHIA4408:56:1107:25:07202202040412620 E VERNON AV, VERNON20002R09:57:2802/26/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0301 CA0197300VPD CR22-0302 CA0197300VPDCAM,PATRICK*4009:59:07 09:59:2911:04:4010:06:51VPDFLORES,TERESA3209:59:4811:04:3810:03:04VPDMACIEL,CYNTHIA4410:00:1110:33:5210:03:0220220204077VIOLET ALLEY // 30TH, VERNONREC22:33:3102/26/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0303 CA01973001Page of 202/27/202205:03:55
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/26/202202/26/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene20220204077VIOLET ALLEY // 30TH, VERNONREC22:33:3102/26/2022VRECDepartmentOCA NumberRMS JurisVPD CR22-0303 CA0197300VPDLUCAS,JASON*4023:33:3122:33:31VPDMANNINO,NICHOLAS32W22:35:1223:15:49VPDSALDANA,CARLOS41E22:34:2922:57:3222:34:35VPDMADRIGAL,ALFONSO44W22:33:4022:41:4922:36:13VPDCROSS,JEREMYS322:48:1722:34:46* Denotes Primary Unit2Page of 202/27/202205:03:55
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/27/202202/27/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202040956160 MALBURG WY, VERNON459LEONARD MEATS CO02:26:0602/27/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0304 CA0197300VPDSALDANA,CARLOS*41E05:52:2902:26:07VPDMANNINO,NICHOLAS32W02:26:1805:51:3103:06:11VPDLUCAS,JASON4005:51:3302:29:04VPDMADRIGAL,ALFONSO44W02:26:1505:51:3502:27:15VPDCROSS,JEREMYS305:21:2102:26:1620220204120BANDINI BL // SOTO, VERNONVCK12:19:3502/27/2022RPT1015VSLAPDDepartmentOCA NumberRMS JurisVPD CR22-0305 CA0197300VPDMACIEL,CYNTHIA*41W14:33:4212:19:35VPDVELASQUEZ,RICHARD4013:51:1312:30:29VPDFLORES,TERESA44E12:19:5513:51:0912:23:4620220204124SEVILLE AV // LEONIS BL, VERNON594RVERIZON WIRELESS 1-800-451-524213:48:2402/27/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0306 CA0197300VPDFLORES,TERESA*44E13:51:0914:38:1413:52:30VPDVELASQUEZ,RICHARD4013:51:13 13:52:3214:38:1413:58:08202202041433031 E VERNON AV, VERNON594RAMPM20:58:1102/27/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0307 CA0197300VPDMADRIGAL,ALFONSO*44W21:03:00 21:03:0421:31:5621:07:56* Denotes Primary Unit1Page of 102/28/202203:46:28
VERNON POLICE DEPARTMENTCall Log Report Type All Unit Times and Location with OCA'sJurisdiction:First Date:Last Date:02/28/202202/28/2022Call Number DispTenCodeCaller AddressOfficerUnitDepUnit Time DispatchEnrouteDepartArriveRemoveCompVERNONReceivedComplaint OnScene202202041703049 E VERNON AV, VERNON487RFARMER JOHN06:19:4502/28/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0308 CA0197300VPDARANA,ANDRE*31E06:22:3406:57:1306:28:24VPDLANDA,RAFAEL4006:57:1406:25:0820220204197PACIFIC BL // SANTA FE AV, VERNONLPR11:00:4602/28/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0309 CA0197300VPD CR22-0310 CA0197300VPDFLORES,TERESA*3111:40:2711:04:02VPDMACIEL,CYNTHIA3211:04:3411:17:2311:09:54VPDGODOY,RAYMOND41W11:06:0311:16:3111:09:53202202041983843 S SOTO, VERNON476R11:11:4202/28/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0311 CA0197300VPDGODOY,RAYMOND*41W11:17:2911:41:20 12:25:4011:21:25202202042194657 BANDINI BL, VERNON901TSIRIUSXM CVS TELEMATICS CALL CTR16:27:1302/28/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0312 CA0197300VPDFLORES,TERESA*3116:27:27 16:28:3617:32:2916:30:58VPDMACIEL,CYNTHIA3216:30:3617:05:5516:59:31202202042213211 FRUITLAND AV, VERNON487RBARKSDALE17:03:1602/28/2022RPTDepartmentOCA NumberRMS JurisVPD CR22-0313 CA0197300VPDFLORES,TERESA*3117:35:46 17:35:4817:39:39VPDGODOY,RAYMOND41W17:38:1718:16:2017:47:23* Denotes Primary Unit1Page of 103/01/202203:55:15
City Council Agenda Item Report
Submitted by: Joanna Moreno
Submitting Department: Public Utilities
Meeting Date: April 19, 2022
SUBJECT
Agreement for Assignment of Non-Consumptive Water Use Permit with the Water
Replenishment District of Southern California
Recommendation:
A. Find that approval of the proposed action is exempt from California Environmental
Quality Act (CEQA) review because it is an administrative activity that will not result in
direct or indirect physical changes in the environment, and therefore does not constitute
a “project” as defined by CEQA Guidelines Section 15378; and
B. Approve and authorize the City Administrator to execute the Agreement for Assignment
of Non-Consumptive Water Use Permit with the Water Replenishment District of
Southern California, in substantially the same form as submitted.
Background:
On December 3, 2019, City Council approved an Access and License Agreement with the
Water Replenishment District of Southern California (WRD). The Access and License
Agreement is for the City property located on the northwest corner of Irving Street and 38th
Street; identified by Assessor ’s Identification Number 6302-013-900. WRD is in the process of
constructing a groundwater treatment system on the site in order to remediate perchlorate
groundwater contamination.
The perchlorate detections in the area of concern are among some of the highest in the state.
WRD received a grant from the State Water Resources Control Board (SWRCB) to remediate
the perchlorate contamination plume. The remediation consists of extracting groundwater from
four wells and treating the water with multiple treatment technologies (i.e., fluidized bed
reactor, granular activated carbon, advanced oxidation process, and ion exchange) before
discharging the treated water to a nearby storm drain. WRD’s grant agreement will fund a
majority of the remediation construction costs to treat perchlorate impacts and other comingled
constituents such as volatile organic compounds. WRD will fund the remainder of the Project;
if any Responsible Parties are identified, WRD may seek reimbursement for the entire cost of
the remediation. The project has a work completion month of February 2023 and has a useful
projected lifespan of 20 years.
WRD has requested an Agreement for Assignment of Non-Consumptive Water Use Permit
(Agreement) with the City. The Agreement would assign the permit to WRD to extract
groundwater for the project without the production counting against the City’s annual Allowed
Pumping Allocation (APA). Additionally, the extracted groundwater would be exempt from the
Replenishment Assessment that is typically applied for all groundwater extracted from the
Central Groundwater Basin. The Agreement will enable WRD to remediate the groundwater
without impact to the City’s annual APA. The term of the Agreement is until January 1, 2042 or
until such time that it is terminated upon a default or material breach as outlined in the
Agreement. This term is commensurate with the projected lifespan of the project noted above.
The proposed agreement has been reviewed and approved as to form by the City Attorney's
Office.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Agreement for Assignment of Non-Consumptive Water Use Permit
1 Agreement for Assignment of Non-Consumptive Water Use Permit
AGREEMENT FOR ASSIGNMENT OF
NON-CONSUMPTIVE WATER USE PERMIT
This Agreement for Assignment of Non-Consumptive Water Use Permit
(“Agreement”) is entered into by and between City of Vernon and Water Replenishment
District (collectively, the “Parties”) as of this _____ day of ________, 2022 (the “Effective
Date”).
I. RECITALS
WHEREAS, City of Vernon maintains groundwater rights in the Central
Groundwater Basin (“Central Basin”) pursuant to the Judgment entered in
Central and West Basin Water Replenishment District, etc. vs. Charles E.
Adams, et al., LASC Case No. 786656 (the “Third Amended Judgment”).
WHEREAS, Water Replenishment District is not a party to the Judgment, yet is
carrying out a groundwater clean-up effort at a facility leased from the City
of Vernon, which is located at the northwest corner of Irving Street and 38th
Street in Vernon, California to address a regional perchlorate groundwater
plume and other comingled constituents located in the Los Angeles
Forebay.
WHEREAS, City of Vernon is not in any manner affiliated with or a responsible
party, partner, or participant in the clean-up effort by Water Replenishment
District.
WHEREAS, Section III (B)(7) of the Third Amended Judgment allows the Water
Replenishment District of Southern California (“District”) to issue a Non-
Consumptive Water Use Permit, upon certain terms and conditions, to a
party to the Judgment so that groundwat er extractions by an operator of a
groundwater clean-up project are not debited against the Allowed Pumping
Allocation (APA) rights of any party to the Judgment.
WHEREAS, the District has granted a Non-Consumptive Use Permit to City of
Vernon pursuant to WRD Resolution No. 22-1170 (the “Permit”). (A true and
correct copy of the Permit is attached to this Agreement as Exhibit A.). The
force and effect of the Permit is expressly conditioned upon City of Vernon
assignment of its rights under the Permit to Water Replenishment District in
accordance with the terms and conditions of the Permit.
WHEREAS, City of Vernon and Water Replenishment District recognize that Water
Replenishment District clean-up project at the Proposition 1 - Los Angeles
Forebay Perchlorate Cleanup Project is intended to remedy or ameliorate
groundwater contamination in the Central Basin.
2 Agreement for Assignment of Non-Consumptive Water Use Permit
WHEREAS, City of Vernon and Water Replenishment District desire to enter this
Agreement whereby City of Vernon agrees to assign its rights to extract
groundwater pursuant to the Permit to Water Replenishment District for use
by Water Replenishment District in carrying out its clean-up project at the
Proposition 1 - Los Angeles Forebay Perchlorate Cleanup Project.
II. TERMS AND CONDITIONS
NOW THEREFORE, in exchange for good and valuable consideration,
receipt of which is hereby acknowledged and received, City of Vernon and Water
Replenishment District agree as follows:
A. Assignment. City of Vernon hereby assigns all of its rights and
obligations under the Permit to Water Replenishment District to allow Water
Replenishment District to carry out its clean-up project at the Proposition 1 - Los Angeles
Forebay Perchlorate Cleanup Project Site in accordance with the terms and conditions of
the Permit and the terms and conditions of this Agreement. By executing this Agreement,
Water Replenishment District accepts said assignment.
B. Term. This Agreement shall continue for the effective and authorized
term of City of Vernon Permit granted to City of Vernon by the District pursuant to WRD
Resolution No. 22-1170 or until such time that this Agreement is terminated in accordance
with Section II(C), below, whichever occurs first.
C. Termination. This Agreement shall terminate upon a default or
material breach by (1) Water Replenishment District of this Agreement or the Permit or
(2) City of Vernon of the Permit; provided, however, that in the event that Water
Replenishment District commits such a breach or default, there shall be no default or
material breach thereof until such failure has continued for thirty (30) calendar days after
written notice is provided by the non-breaching party to the breaching party of said breach
or default (hereinafter referred to as a “Notice of Breach.”) The Party sending a Notice of
Breach shall send a copy of said Notice to WRD at the same time that the Notice is sent
to the breaching party.
D. Indemnification. Water Replenishment District shall indemnify,
defend (with counsel, reasonably acceptable to City of Vernon) and hold harmless City of
Vernon and its directors, officers, officials, employees, contractors, subcontractors,
representatives, agents, successors and/or assigns for and against any and all liabilities,
claims (by third parties or otherwise), demands, suits, administrative proceedings,
damages, losses, judgments, awards, penalties, attorneys’ fees and expense s, expert
witness fees and/or costs of any kind, whether actual, alleged or threatened, attributable
to, arising from, or related to: (1) any act or omission committed by Water Replenishment
District or any of Water Replenishment District officers, directors, members, employees,
contractors, subcontractors, representatives, agents, successors and/or assigns
(collectively “Water Replenishment District Parties”) as part of their activities and related
3 Agreement for Assignment of Non-Consumptive Water Use Permit
work carried out in connection with this Agreement, City of Vernon Permit, or Water
Replenishment District clean-up project at the Proposition 1 - Los Angeles Forebay
Perchlorate Cleanup Project Site; (2) any breach of any of the covenants, obligations,
representations, or warranties by Water Replenishment District or Water Replenishment
District Parties under this Agreement, City of Vernon Permit, or Water Replenishment
District clean-up project at the Proposition 1 - Los Angeles Forebay Perchlorate Cleanup
Project Site; or (3) Water Replenishment District or Water Replenishment District Parties’
negligent acts, errors or omissions, or willful misconduct arising from or related to Water
Replenishment District or Water Replenishment District Parties’ performance under this
Agreement, City of Vernon Permit, or Water Replenishment District clean-up project at
the Proposition 1 - Los Angeles Forebay Perchlorate Cleanup Project Site. The foregoing
indemnity obligations shall survive the expiration or termination of this Agreement, City of
Vernon Permit, and Water Replenishment District clean-up project at the Proposition 1 -
Los Angeles Forebay Perchlorate Cleanup Project Site.
E. Permits. Water Replenishment District, at its sole cost and efforts,
shall be entirely responsible for obtaining any and all governmental permits, approvals,
consents, licenses, and other authorizations which may be necessary to carry out any
and all activity or work at the Proposition 1 - Los Angeles Forebay Perchlorate Cleanup
Project Site pursuant to this Agreement and City of Vernon Permit (“Authorizations”).
F. Compliance With All Laws. Water Replenishment District shall
comply with any and all applicable laws, rules, regulations, agreements, and
Authorizations, including but not limited to the Third Amended Judgment and the District’s
administrative rules. in connection with its clean-up project and activities at the
Proposition 1 - Los Angeles Forebay Perchlorate Cleanup Project Site that are carried
out pursuant to this Agreement and City of Vernon Permit.
G. Amendments. This Agreement shall not be amended unless in
writing by City of Vernon and Water Replenishment District.
H. Notices. Any notice or document required to be given or delivered
under this Agreement shall be given or delivered by personal delivery or by deposit ing
the same in a United States mail depository, first class postage prepaid, registered, or
certified, and addressed as follows:
If to: City of Vernon
4305 South Santa Fe Avenue
Vernon, CA 90058
ATTN: Abraham Alemu, General Manager of Public Utilities
Tel: (323) 583-8811
4 Agreement for Assignment of Non-Consumptive Water Use Permit
If to: Water Replenishment District of Southern California
4040 Paramount Boulevard
Lakewood, CA 90712
ATTN: Brian Partington, Manager of Hydrogeology
Email: bpartington@wrd.org
Tel: (562) 921-5521
Either party hereto may change its mailing address or substitute its
representative identified above by written notice to the other party.
I. Successors and Assigns. All of the terms, conditions and provisions
of this Agreement shall inure to the benefit of, and be binding upon, City of Vernon and
Water Replenishment District and their respective successors and assigns.
Notwithstanding the foregoing, neither this Agreement n or any of the rights, interests, or
obligations hereunder shall be assigned or conveyed by either party hereto without the
prior written consent of the other party.
J. Governing Law. This Agreement shall be construed in accordance
with the laws of the State of California applicable to contracts made and performed in
California.
K. Interpretation. This Agreement shall be interpreted as though both
Parties hereto drafted the Agreement under the advice of independent legal counsel with
regard to the provisions of the Agreement.
L. Attorneys’ Fees. If a dispute arises, which cannot be resolved by
arbitration, regarding breach or enforcement of the provisions of this Agreement or the
City of Vernon Permit, the prevailing party shall be entitled to recover attorneys’ fees and
costs incurred in resolving the dispute, whether or not an action, claim or lawsuit is filed .
In any action brought, the recovery of attorneys’ fees and costs will be considered an
element of costs and not of damages.
5 Agreement for Assignment of Non-Consumptive Water Use Permit
IN WITNESS WHEREOF, City of Vernon and Water Replenishment District,
through their duly authorized officers and officials, have caused this Agreement to be
executed on the Effective Date.
CITY OF VERNON, a California charter City and
California municipal corporation
By: _______________________________________
Name and Title: Carlos Fandino, City Administrator
Date:
ATTEST:
_______________________________
Lisa Pope, City Clerk
APPROVED AS TO FORM:
_______________________________
Zaynah N. Moussa,
Interim City Attorney
WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA
By:
Name and Title: _____________________________
Date:
APPROVED AS TO FORM
Leal ▪ Trejo APC,
Attorney for the Water Replenishment District
of Southern California
6 Agreement for Assignment of Non-Consumptive Water Use Permit
EXHIBIT A
RESOLUTION NO. 22-1170
RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER REPLENISHMENT
DISTRICT OF SOUTHERN CALIFORNIA GRANTING A NON-CONSUMPTIVE WATER USE
PERMIT TO THE CITY OF VERNON, CALIFORNIA FOR ASSIGNMENT TO THE WATER
REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA, FOR GROUNDWATER
REMEDIATION IN VERNON, CALIFORNIA
RECITALS
WHEREAS, the Water Replenishment District of Southern California (“District”) has
received a petition from the City of Vernon (“City”) for a Non -Consumptive Water Use Permit
under the Central Basin Third Amended Judgment (Los Angeles Superior Court Case No.
C786656) (the “Judgment”) that will be assigned to the Water Replenishment District of Southern
California as part of a perchlorate groundwater clean-up effort being carried out in the Central
Groundwater Basin (“Central Basin”) by the Water Replenishment District of Southern California
with a treatment system being installed at the northwest corner of Irving Street and 38 th Street
in Vernon, California 90058 (hereinafter referred to as “Site”); and
WHEREAS, the Water Replenishment District of Southern California has been
investigating a perchlorate groundwater plume with the assistance of various regulatory
agencies in association with the Los Angeles Forebay Groundwater Task Force. The
perchlorate detections are among the highest in the state and the groundwater plume is currently
located in a deep aquifer system within the Los Angeles Forebay. WRD successfully applied for
and received a grant from the State Water Resources Control Board (SWRCB) through the
Proposition 1 Groundwater Grant Program (Proposition 1). The state grant funds will help pay
for a majority of the remediation construction costs to treat the perchlorate impacts along with
other comingled constituents such as volatile organic contaminants (VOCs). WRD’s signed
grant agreement has a work completion date (i.e., project duration) of February 28, 2023 and a
useful project life of 20 years. Said cleanup consists of extracting groundwater from four wells
and treating the water with multiple treatment technologies (i.e., fluidized bed reactor, granular
activated carbon, advanced oxidation process, and ion exchange) before discharging the treated
water to a nearby storm drain under a permit obtained from the Regional Water Quality Control
Board or sewer connection allowed by the Los Angeles County Sanitation District. In connection
with its clean-up effort, the Water Replenishment District of Southern California has applied to
the District for an exemption from the replenishment assessment pursuant to Section 2.3 of
District Resolution 22-1169; and
WHEREAS, the City is not a responsible party, partner, or participant in the clean -up
effort by the Water Replenishment District of Southern California. However, the City is a party
to the Central Basin Judgment and, accordingly, may petition the District for a Non-Consumptive
Water Use Permit for use in connection with any clean-up efforts in the Central Basin; and
WHEREAS, the Water Replenishment District of Southern California proposes to operate
its clean-up effort pursuant to the terms of a Non-Consumptive Water Use Permit granted by this
Resolution to the City and assigned by the City to the Water Replenishment District of Southern
California as the clean-up project operator; and
WHEREAS, the Non-Consumptive Water Use Permit granted pursuant to this Resolution
is applicable only for the term and limited quantity of groundwater extractions specified below.
The Non-Consumptive Water Use Permit granted hereunder is not applicable to any water that
is extracted and put to any beneficial surface use; and
WHEREAS, the District’s Board of Directors has received a staff report supporting the
findings hereinafter made and action hereafter taken; and
WHEREAS, the Water Replenishment District of Southern California is the operator of a
groundwater producing facility, pursuant to Water Code Section 60020, and is exercising its
powers pursuant to Water Code Section 60224 for purposes of conducting groundwater cleanup.
RESOLUTION
BE IT RESOLVED by the Board of Directors of the Water Replenishment District of
Southern California as follows:
1. It is found and determined:
(a) That there exists a problem of groundwater contamination in the Central
Basin as set forth above in this Resolution.
(b) Subject to the conditions imposed below, the quantity of proposed
groundwater extractions will help remedy or ameliorate said problem of
groundwater contamination.
(c) The proposed project will involve the extraction of groundwater that is
unusable and cannot be economically treated or blended for use with other
water.
2. The Non-Consumptive Water Use Permit herein granted shall not apply to any
quantity of water applied to any beneficial surface use.
3. The following groundwater extractions made under the Non -Consumptive Water
Use Permit herein granted will not be debited against any adjudicated water rights under the
Central Basin Judgment, subject to all terms, conditions and provisions of this Resolution:
Groundwater extracted as part of the Water Replenishment District of
Southern California’s clean-up project at the Site is for a period
commencing February 1, 2022 and ending January 31, 2042, which
quantity of groundwater extractions may not exceed a total of two -
hundred (200) acre-feet per year. The term list above is commensurate
with the projects 20 year useful life as required in the grant agreement
the Water Replenishment District of Southern California has with the
SWRCB.
4. The Non-Consumptive Water Use Permit herein granted shall apply only if the
following additional terms and conditions are satisfied:
(a) The groundwater extractions are from the four remediation wells to which
this Resolution relates and are in all respects as set forth in the Water
Replenishment District of Southern California’s application to the District for
an exemption from the replenishment assessment and Non-Consumptive
Water Use Permit under the Central Basin Third Amended Judgment
Section III.B.7 in connection with this clean-up project.
(b) The Water Replenishment District of Southern California shall file quarterly
reports with the District on all groundwater extractions made by the Water
Replenishment District of Southern California at the Site, the accuracy of
which may be verified by the District and/or the Central Basin Watermaster.
The Water Replenishment District of Southern California shall also file a
report annually with the District during the period of this Resolution setting
forth progress made by the Water Replenishment District of Southern
California in remedying or ameliorating the problem of groundwater
contamination and stating any changes in conditions. The Water
Replenishment District of Southern California shall also advise the District
within thirty (30) calendar days of any change in conditions that would
affect the Non-Consumptive Water Use Permit under this Resolution.
5. The Non-Consumptive Water Use Permit herein granted applies only to extracted
groundwater that is unusable and cannot be economically treated or blended for use with other
water, and which is not applied to any beneficial surface use. The District may rescind or modify
the Non-Consumptive Water Use Permit herein granted according to the considerations set forth
in the Central Basin Third Amended Judgment.
6. The Non-Consumptive Water Use Permit herein granted is further conditioned
upon the Water Replenishment District of Southern California obtaining all necessary
governmental approvals, permits, and authorizations in connection with its clean -up project as
described in Exhibit A.
7. This Resolution shall serve as the Non-Consumptive Water Use Permit herein
granted under the Central Basin Third Amended Judgment.
8. This Resolution shall be of no force or legal effect until the City and the Water
Replenishment District of Southern California (as assignee of this Permit and clean-up project
operator) acknowledge in writing, received by the District, that they have received a copy of this
Resolution, referring to this Resolution by resolution number, that they agree to be bound by all
of the terms and conditions hereof, and that the Non-Consumptive Water Use Permit herein
granted has been duly assigned by the City to the Water Replenishment District of Southern
California.
PASSED AND ADOPTED by the Board of Directors of the Water Replenishment District of
Southern California this day of 2022 by the following vote:
Ayes
Noes
Absent
WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA
John D. S. Allen, President
ATTEST:
Vera Robles DeWitt, Secretary
APPROVED AS TO FORM:
Leal ▪ Trejo, APC
City Council Agenda Item Report
Submitted by: Nicholas Perez
Submitting Department: Police Department
Meeting Date: April 19, 2022
SUBJECT
Proposed Military Equipment Use Policy
Recommendation:
Receive and file the draft Vernon Police Department Military Equipment Policy and direct staff
to schedule a public hearing for the June 7, 2022 Regular City Council meeting to consider the
proposed policy.
Background:
Effective January 1, 2022, Assembly Bill (AB) 481 (codified in Government Code section
7070, et seq.) requires legislative bodies to adopt ordinances approving military equipment
use policies before law enforcement agencies can continue to engage in specified activities
related to the use of military equipment as defined under Government Code section 7070. In
enacting AB 481, the Legislature found that the public has a right to know about any funding,
acquisition, or use of military equipment by state or local government officials in an effort to
increase transparency, accountability and oversight.
As the first step in obtaining City Council approval, the Vernon Police Department (VPD) has
detailed its equipment inventory in the attached proposed Military Equipment Use Policy
(Policy). While the VPD does not possess any tactical equipment that has been obtained from
the military, it does possess equipment that has been defined as military equipment by AB
481. Many of the items designated by AB 481 as military equipment have been in the Police
Department’s equipment inventory for decades. The proposed Policy approves the continued
use of equipment currently in the VPD’s inventory by authorized and trained personnel when
the use is necessary to maintain safety.
Procedural Requirements
Pursuant to Government Code Section 7071, this report provides the draft Policy to City
Council and makes the Policy available on the VPD website at least 30 days prior to the public
hearing concerning the military equipment at issue; the proposed Policy was posted on the
Police Department’s webpage of the City's website on April 4, 2022.
A public hearing will be scheduled for June 7, 2022 to consider adoption of the ordinance
approving the Policy. If adopted, the Vernon Police Department would be responsible for
ensuring that all provisions of Government Code sections 7071 and 7072 are met. In addition,
the City Council will be required to review the ordinance and policy at least annually and have
the opportunity to renew or make any necessary changes.
If the City Council does not approve the continuing use of military equipment within 180 days
of submission of the proposed Policy, the VPD shall cease its use of the military equipment
until it receives the approval of the City Council in accordance with AB 481.
Policy Highlights
AB 481 requires law enforcement to publicly release a policy governing the use of military
equipment by a law enforcement agency which must be approved by the City Council via
Ordinance, with findings of the following:
The military equipment is necessary because there is no reasonable alternative that can
achieve the same objective of officer and civilian safety;
The proposed military equipment use policy will safeguard the public’s welfare, safety,
civil rights, and civil liberties;
If purchasing the equipment, the equipment is reasonably cost effective compared to
available alternatives that can achieve the same objective of officer and civilian safety;
and
Prior military equipment use complied with the military equipment use policy that was in
effect at the time, or if prior uses did not comply with the accompanying military
equipment use policy, corrective action has been taken to remedy nonconforming uses
and ensure future compliance.
The proposed Policy would also allow the continued cooperation with other law enforcement
agencies (mutual aid) in the deployment or other use of defined equipment within the City. In
exigent circumstances, there may be a need to deploy military equipment from or lend military
equipment to other public entities to ensure the safety and security of the public.
For added clarity, nothing in AB 481 prohibits law enforcement from obtaining any of the
above equipment, but rather AB 481 creates a public process for getting approval on the type
of equipment that is authorized and the uses for that equipment.
Attached is the draft Policy, which includes a list of military equipment that the VPD maintains.
The use of the military equipment identified in the inventory section of the policy is vital to the
VPD’s mission and will continue to be strictly regulated through internal processes and
oversight.
Annually, the VPD will prepare and present to the City Council an Annual Military Equipment
Report, and distribute it on the City’s website 30 days prior to the City Council meeting where
the following items are reviewed:
The quantity possessed for each type of military equipment as of the date of the annual
report;
Summary of how the military equipment was used and the purpose of its use;
Summary of any concerns or complaints received involving the use of military
equipment;
The results of any internal audits, any information about violations of the military
equipment use policy, and any actions taken in response;
Total annual cost of each type of military equipment, including acquisition, personnel,
training, transportation, maintenance, storage, upgrade and other ongoing costs; and
Acquisition plans (including source of funds) for the coming year, type and quantity.
The proposed Policy addresses each aspect required under AB 481 and includes an inventory
of military equipment in the VPD’s possession effective January 1, 2022. As any future
purchases are made, equipment which meets the military equipment designation will be added
to the Department’s inventory and included in the annual report.
Community Engagement
On April 4, 2022, informative links to document compliance with AB 481 and the draft VPD
Military Equipment Use Policy were published on the Department webpage for public viewing.
Following the April 19, 2022 Council meeting, a public hearing will be scheduled for June 7,
2022 to consider adoption of the Military Equipment Use Policy via ordinance, as required by
AB 481. Without Council approval of the Policy and related ordinance, the VPD’s ability to
respond to a critical incident and provide mutual aid when called upon would be compromised
and potentially detrimental to public safety and the City’s risk exposure.
The draft Policy has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Assembly Bill No. 481
2. VPD's Draft Military Equipment Use Policy
Assembly Bill No. 481
CHAPTER 406
An act to add Chapter 12.8 (commencing with Section 7070) to Division
7 of Title 1 of the Government Code, relating to military equipment.
[Approved by Governor September 30, 2021. Filed with
Secretary of State September 30, 2021.]
legislative counsel’s digest
AB 481, Chiu. Law enforcement and state agencies: military equipment:
funding, acquisition, and use.
Existing law designates the Department of General Services as the agency
for the State of California responsible for distribution of federal surplus
personal property, excepting food commodities, and requires the department
to, among other things, do all things necessary to the execution of its powers
and duties as the state agency for the distribution of federal personal surplus
property, excepting food commodities, in accordance with specified federal
law. Existing law, the Federal Surplus Property Acquisition Law of 1945,
authorizes a local agency, as defined, to acquire surplus federal property
without regard to any law which requires posting of notices or advertising
for bids, inviting or receiving bids, or delivery of purchases before payment,
or which prevents the local agency from bidding on federal surplus property.
Existing federal law authorizes the Department of Defense to transfer surplus
personal property, including arms and ammunition, to federal or state
agencies for use in law enforcement activities, subject to specified conditions,
at no cost to the acquiring agency.
This bill would require a law enforcement agency, defined to include
specified entities, to obtain approval of the applicable governing body, by
adoption of a military equipment use policy, as specified, by ordinance at
a regular meeting held pursuant to specified open meeting laws, prior to
taking certain actions relating to the funding, acquisition, or use of military
equipment, as defined. The bill would also require similar approval for the
continued use of military equipment acquired prior to January 1, 2022. The
bill would allow the governing body to approve the funding, acquisition,
or use of military equipment within its jurisdiction only if it determines that
the military equipment meets specified standards. The bill would require
the governing body to annually review the ordinance and to either disapprove
a renewal of the authorization for a type, as defined, of military equipment
or amend the military equipment use policy if it determines, based on an
annual military equipment report prepared by the law enforcement agency,
as provided, that the military equipment does not comply with the
above-described standards for approval. The bill would specify these
provisions do not preclude a county or local municipality from implementing
92
additional requirements and standards related to the purchase, use, and
reporting of military equipment by local law enforcement agencies.
This bill would also require a state agency, as defined, to create a military
equipment use policy before engaging in certain activities, publish the policy
on the agency’s internet website, and provide a copy of the policy to the
Governor or the Governor’s designee, as specified. The bill would also
require a state agency that seeks to continue use of military equipment
acquired prior to January 1, 2022, to create a military equipment use policy.
This bill would also include findings that the changes proposed by this
bill address a matter of statewide concern rather than a municipal affair and,
therefore, apply to all cities, including charter cities.
By adding to the duties of local officials with respect to the funding,
acquisition, and use of military equipment, this bill would impose a
state-mandated local program.
The California Constitution requires local agencies, for the purpose of
ensuring public access to the meetings of public bodies and the writings of
public officials and agencies, to comply with a statutory enactment that
amends or enacts laws relating to public records or open meetings and
contains findings demonstrating that the enactment furthers the constitutional
requirements relating to this purpose.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies
and school districts for certain costs mandated by the state. Statutory
provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for
a specified reason.
The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:
(a) The acquisition of military equipment and its deployment in our
communities adversely impacts the public’s safety and welfare, including
increased risk of civilian deaths, significant risks to civil rights, civil liberties,
and physical and psychological well-being, and incurment of significant
financial costs. Military equipment is more frequently deployed in
low-income Black and Brown communities, meaning the risks and impacts
of police militarization are experienced most acutely in marginalized
communities.
(b) The public has a right to know about any funding, acquisition, or use
of military equipment by state or local government officials, as well as a
right to participate in any government agency’s decision to fund, acquire,
or use such equipment.
(c) Decisions regarding whether and how military equipment is funded,
acquired, or used should give strong consideration to the public’s welfare,
safety, civil rights, and civil liberties, and should be based on meaningful
public input.
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— 2 — Ch. 406
(d) Legally enforceable safeguards, including transparency, oversight,
and accountability measures, must be in place to protect the public’s welfare,
safety, civil rights, and civil liberties before military equipment is funded,
acquired, or used.
(e) The lack of a public forum to discuss the acquisition of military
equipment jeopardizes the relationship police have with the community,
which can be undermined when law enforcement is seen as an occupying
force rather than a public safety service.
SEC. 2. Chapter 12.8 (commencing with Section 7070) is added to
Division 7 of Title 1 of the Government Code, to read:
Chapter 12.8. Funding, Acquisition, and Use of Military
Equipment
7070. For purposes of this chapter, the following definitions shall apply:
(a) “Governing body” means the elected body that oversees a law
enforcement agency or, if there is no elected body that directly oversees the
law enforcement agency, the appointed body that oversees a law enforcement
agency. In the case of a law enforcement agency of a county, including a
sheriff ’s department or a district attorney’s office, “governing body” means
the board of supervisors of the county.
(b) “Law enforcement agency” means any of the following:
(1) A police department, including the police department of a transit
agency, school district, or any campus of the University of California, the
California State University, or California Community Colleges.
(2) A sheriff ’s department.
(3) A district attorney’s office.
(4) A county probation department.
(c) “Military equipment” means the following:
(1) Unmanned, remotely piloted, powered aerial or ground vehicles.
(2) Mine-resistant ambush-protected (MRAP) vehicles or armored
personnel carriers. However, police versions of standard consumer vehicles
are specifically excluded from this subdivision.
(3) High mobility multipurpose wheeled vehicles (HMMWV), commonly
referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or
wheeled vehicles that have a breaching or entry apparatus attached. However,
unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are
specifically excluded from this subdivision.
(4) Tracked armored vehicles that provide ballistic protection to their
occupants and utilize a tracked system instead of wheels for forward motion.
(5) Command and control vehicles that are either built or modified to
facilitate the operational control and direction of public safety units.
(6) Weaponized aircraft, vessels, or vehicles of any kind.
(7) Battering rams, slugs, and breaching apparatuses that are explosive
in nature. However, items designed to remove a lock, such as bolt cutters,
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Ch. 406 — 3 —
or a handheld ram designed to be operated by one person, are specifically
excluded from this subdivision.
(8) Firearms of .50 caliber or greater. However, standard issue shotguns
are specifically excluded from this subdivision.
(9) Ammunition of .50 caliber or greater. However, standard issue shotgun
ammunition is specifically excluded from this subdivision.
(10) Specialized firearms and ammunition of less than .50 caliber,
including assault weapons as defined in Sections 30510 and 30515 of the
Penal Code, with the exception of standard issue service weapons and
ammunition of less than .50 caliber that are issued to officers, agents, or
employees of a law enforcement agency or a state agency.
(11) Any firearm or firearm accessory that is designed to launch explosive
projectiles.
(12) “Flashbang” grenades and explosive breaching tools, “tear gas,”
and “pepper balls,” excluding standard, service-issued handheld pepper
spray.
(13) Taser Shockwave, microwave weapons, water cannons, and the
Long Range Acoustic Device (LRAD).
(14) The following projectile launch platforms and their associated
munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and
specialty impact munition (SIM) weapons.
(15) Any other equipment as determined by a governing body or a state
agency to require additional oversight.
(16) Notwithstanding paragraphs (1) through (15), “military equipment”
does not include general equipment not designated as prohibited or controlled
by the federal Defense Logistics Agency.
(d) “Military equipment use policy” means a publicly released, written
document governing the use of military equipment by a law enforcement
agency or a state agency that addresses, at a minimum, all of the following:
(1) A description of each type of military equipment, the quantity sought,
its capabilities, expected lifespan, and product descriptions from the
manufacturer of the military equipment.
(2) The purposes and authorized uses for which the law enforcement
agency or the state agency proposes to use each type of military equipment.
(3) The fiscal impact of each type of military equipment, including the
initial costs of obtaining the equipment and estimated annual costs of
maintaining the equipment.
(4) The legal and procedural rules that govern each authorized use.
(5) The training, including any course required by the Commission on
Peace Officer Standards and Training, that must be completed before any
officer, agent, or employee of the law enforcement agency or the state agency
is allowed to use each specific type of military equipment to ensure the full
protection of the public’s welfare, safety, civil rights, and civil liberties and
full adherence to the military equipment use policy.
(6) The mechanisms to ensure compliance with the military equipment
use policy, including which independent persons or entities have oversight
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— 4 — Ch. 406
authority, and, if applicable, what legally enforceable sanctions are put in
place for violations of the policy.
(7) For a law enforcement agency, the procedures by which members of
the public may register complaints or concerns or submit questions about
the use of each specific type of military equipment, and how the law
enforcement agency will ensure that each complaint, concern, or question
receives a response in a timely manner.
(e) “State agency” means the law enforcement division of every state
office, officer, department, division, bureau, board, and commission or other
state body or agency, except those agencies provided for in Article IV
(except Section 20 thereof) or Article VI of the California Constitution.
(f) “Type” means each item that shares the same manufacturer model
number.
7071. (a) (1) A law enforcement agency shall obtain approval of the
governing body, by an ordinance adopting a military equipment use policy
at a regular meeting of the governing body held pursuant to the
Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M.
Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of
Division 2 of Title 5), as applicable, prior to engaging in any of the
following:
(A) Requesting military equipment made available pursuant to Section
2576a of Title 10 of the United States Code.
(B) Seeking funds for military equipment, including, but not limited to,
applying for a grant, soliciting or accepting private, local, state, or federal
funds, in-kind donations, or other donations or transfers.
(C) Acquiring military equipment either permanently or temporarily,
including by borrowing or leasing.
(D) Collaborating with another law enforcement agency in the deployment
or other use of military equipment within the territorial jurisdiction of the
governing body.
(E) Using any new or existing military equipment for a purpose, in a
manner, or by a person not previously approved by the governing body
pursuant to this chapter.
(F) Soliciting or responding to a proposal for, or entering into an
agreement with, any other person or entity to seek funds for, apply to receive,
acquire, use, or collaborate in the use of, military equipment.
(G) Acquiring military equipment through any means not provided by
this paragraph.
(2) No later than May 1, 2022, a law enforcement agency seeking to
continue the use of any military equipment that was acquired prior to January
1, 2022, shall commence a governing body approval process in accordance
with this section. If the governing body does not approve the continuing
use of military equipment, including by adoption pursuant to this subdivision
of a military equipment use policy submitted pursuant to subdivision (b),
within 180 days of submission of the proposed military equipment use policy
to the governing body, the law enforcement agency shall cease its use of
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Ch. 406 — 5 —
the military equipment until it receives the approval of the governing body
in accordance with this section.
(b) In seeking the approval of the governing body pursuant to subdivision
(a), a law enforcement agency shall submit a proposed military equipment
use policy to the governing body and make those documents available on
the law enforcement agency’s internet website at least 30 days prior to any
public hearing concerning the military equipment at issue.
(c) The governing body shall consider a proposed military equipment
use policy as an agenda item for an open session of a regular meeting and
provide for public comment in accordance with the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of
Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title 5), as
applicable.
(d) (1) The governing body shall only approve a military equipment use
policy pursuant to this chapter if it determines all of the following:
(A) The military equipment is necessary because there is no reasonable
alternative that can achieve the same objective of officer and civilian safety.
(B) The proposed military equipment use policy will safeguard the
public’s welfare, safety, civil rights, and civil liberties.
(C) If purchasing the equipment, the equipment is reasonably cost
effective compared to available alternatives that can achieve the same
objective of officer and civilian safety.
(D) Prior military equipment use complied with the military equipment
use policy that was in effect at the time, or if prior uses did not comply with
the accompanying military equipment use policy, corrective action has been
taken to remedy nonconforming uses and ensure future compliance.
(2) In order to facilitate public participation, any proposed or final military
equipment use policy shall be made publicly available on the internet website
of the relevant law enforcement agency for as long as the military equipment
is available for use.
(e) (1) The governing body shall review any ordinance that it has adopted
pursuant to this section approving the funding, acquisition, or use of military
equipment at least annually and, subject to paragraph (2), vote on whether
to renew the ordinance at a regular meeting held pursuant to the
Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M.
Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of
Division 2 of Title 5), as applicable.
(2) The governing body shall determine, based on the annual military
equipment report submitted pursuant to Section 7072, whether each type
of military equipment identified in that report has complied with the
standards for approval set forth in subdivision (d). If the governing body
determines that a type of military equipment identified in that annual military
equipment report has not complied with the standards for approval set forth
in subdivision (d), the governing body shall either disapprove a renewal of
the authorization for that type of military equipment or require modifications
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— 6 — Ch. 406
to the military equipment use policy in a manner that will resolve the lack
of compliance.
(f) Notwithstanding subdivisions (a) to (e), inclusive, if a city contracts
with another entity for law enforcement services, the city shall have the
authority to adopt a military equipment use policy based on local community
needs.
7072. (a) A law enforcement agency that receives approval for a military
equipment use policy pursuant to Section 7071 shall submit to the governing
body an annual military equipment report for each type of military equipment
approved by the governing body within one year of approval, and annually
thereafter for as long as the military equipment is available for use. The law
enforcement agency shall also make each annual military equipment report
required by this section publicly available on its internet website for as long
as the military equipment is available for use. The annual military equipment
report shall, at a minimum, include the following information for the
immediately preceding calendar year for each type of military equipment:
(1) A summary of how the military equipment was used and the purpose
of its use.
(2) A summary of any complaints or concerns received concerning the
military equipment.
(3) The results of any internal audits, any information about violations
of the military equipment use policy, and any actions taken in response.
(4) The total annual cost for each type of military equipment, including
acquisition, personnel, training, transportation, maintenance, storage,
upgrade, and other ongoing costs, and from what source funds will be
provided for the military equipment in the calendar year following
submission of the annual military equipment report.
(5) The quantity possessed for each type of military equipment.
(6) If the law enforcement agency intends to acquire additional military
equipment in the next year, the quantity sought for each type of military
equipment.
(b) Within 30 days of submitting and publicly releasing an annual military
equipment report pursuant to this section, the law enforcement agency shall
hold at least one well-publicized and conveniently located community
engagement meeting, at which the general public may discuss and ask
questions regarding the annual military equipment report and the law
enforcement agency’s funding, acquisition, or use of military equipment.
7073. (a) A state agency shall create a military equipment use policy
prior to engaging in any of the following:
(1) Requesting military equipment made available pursuant to Section
2576a of Title 10 of the United States Code.
(2) Seeking funds for military equipment, including, but not limited to,
applying for a grant, soliciting or accepting private, local, state, or federal
funds, in-kind donations, or other donations or transfers.
(3) Acquiring military equipment either permanently or temporarily,
including by borrowing or leasing.
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Ch. 406 — 7 —
(4) Collaborating with a law enforcement agency or another state agency
in the deployment or other use of military equipment within the territorial
jurisdiction of the governing body.
(5) Using any new or existing military equipment for a purpose, in a
manner, or by a person not previously approved by the governing body
pursuant to this chapter.
(6) Soliciting or responding to a proposal for, or entering into an
agreement with, any other person or entity to seek funds for, or to apply to
receive, acquire, use, or collaborate in the use of, military equipment.
(7) Acquiring military equipment through any means not provided by
this subdivision.
(b) No later than May 1, 2022, a state agency seeking to continue the use
of any military equipment that was acquired prior to January 1, 2022, shall
create a military equipment use policy.
(c) A state agency that is required to create a military equipment use
policy pursuant to this section shall do both of the following within 180
days of completing the policy:
(1) Publish the military equipment use policy on the agency’s internet
website.
(2) Provide a copy of the military equipment use policy to the Governor
or the Governor’s designee.
7074. The Legislature finds and declares that ensuring adequate oversight
of the acquisition and use of military equipment is a matter of statewide
concern rather than a municipal affair as that term is used in Section 5 of
Article XI of the California Constitution. Therefore, this chapter applies to
all cities, including charter cities and shall supersede any inconsistent
provisions in the charter of any city, county, or city and county.
7075. Nothing in this chapter shall preclude a county or local
municipality from implementing additional requirements and standards
related to the purchase, use, and reporting of military equipment by local
law enforcement agencies.
SEC. 3. The Legislature finds and declares that Section 1 of this act,
which adds Chapter 12.8 (commencing with Section 7070) to Division 7 of
Title 1 of the Government Code, furthers, within the meaning of paragraph
(7) of subdivision (b) of Section 3 of Article I of the California Constitution,
the purposes of that constitutional section as it relates to the right of public
access to the meetings of local public bodies or the writings of local public
officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of
Section 3 of Article I of the California Constitution, the Legislature makes
the following findings:
Requiring local agencies to hold public meetings prior to the acquisition
of military equipment further exposes that activity to public scrutiny and
enhances public access to information concerning the conduct of the people’s
business.
SEC. 4. No reimbursement is required by this act pursuant to Section 6
of Article XIII B of the California Constitution because the only costs that
may be incurred by a local agency or school district under this act would
92
— 8 — Ch. 406
result from a legislative mandate that is within the scope of paragraph (7)
of subdivision (b) of Section 3 of Article I of the California Constitution.
O
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Ch. 406 — 9 —
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Published with permission by Vernon Police Department ***DRAFT***Military Equipment - 1
Vernon Police Department
Vernon PD Policy Manual
Military Equipment
707.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting
requirements of military equipment (Government Code § 7070; Government Code § 7071;
Government Code § 7072).
707.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):
Exigent Circumstance – a good faith belief by the Police Chief or designee that an emergency
involving the danger or imminent threat of death or serious physical injury to any person is
occurring, has occurred, or is about to occur.
Governing body – The elected or appointed body that oversees the Police Department.
Military equipment – Includes but is not limited to the following:
•Unmanned, remotely piloted, powered aerial or ground vehicles.
•Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers.
•High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks,
five-tontrucks,or wheeled vehicles that havea breachingorentryapparatusattached.
•Tracked armored vehicles that provide ballistic protection to their occupants.
•Command and control vehicles that are either built or modified to facilitate the
operational control and direction of public safety units.
•Weaponized aircraft, vessels, or vehicles of any kind.
•Battering rams, slugs, and breaching apparatuses that are explosive in nature. This
does not include a handheld, one-person ram.
•Firearmsandammunitionof .50caliberorgreater,excluding standard-issueshotguns
and standard-issue shotgun ammunition.
•Specialized firearms and ammunition of less than .50 caliber including firearms and
accessories identified as assault weapons in Penal Code § 30510 and Penal Code §
30515, with the exception of standard-issue handguns.
•Any firearm or firearm accessory that is designed to launch explosive projectiles.
•Noise-flash diversionary devices and explosive breaching tools.
•Munitions containing tear gas or OC, excluding standard, service-issued handheld
pepper spray.
•TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic
devices (LRADs).
•Kinetic energy weapons and munitions.
Policy707
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Published with permission by Vernon Police Department ***DRAFT***Military Equipment - 2
•Any other equipment as determined by a governing body or a state agency to require
additional oversight.
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Vernon Police Department
Vernon PD Policy Manual
Military Equipment
707.2 POLICY
It is the policy of the Vernon Police Department (Department) that members of this Department
comply with the provisions of Government Code § 7071 with respect to military equipment.
707.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member ofthis Department to act asthe military
equipment coordinator.Theresponsibilitiesofthemilitaryequipmentcoordinatorincludebutare
notlimitedto:
(a)Acting as liaison to the governing body for matters related to the requirements of this
policy.
(b)Identifying department equipment that qualifies as military equipment in the current
possession of the Department, or the equipment the Department intends to acquire
that requires approval by the governing body.
(c)Conducting an inventory of all military equipment at least annually.
(d)Collaborating with any allied agency that may use military equipment within the
jurisdiction of Vernon Police Department (Government Code § 7071).
(e)Preparing for, scheduling, and coordinating the annual community engagement
meeting to include:
1.Publicizing the details of the meeting.
2.Preparing for public questions regarding the Department’s funding,
acquisition, and use of equipment.
(f)Preparing the annual military equipment report for submission to the Chief of Police
andensuringthatthereportismadeavailableontheDepartmentwebsite(Government
Code § 7072).
(g)Establishing the procedure for a person to register a complaint or concern, or how that
person may submit a question about the use of a type of military equipment, and how
the Department will respond in a timely manner.
707.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:
Mobile Incident Command Vehicle (MIC):Area E Command Post (custom built Class A)
vehicle. A vehicle used as a mobile office to provide a centralized shelter, access to Department
computer systems, and restroom facilities during extended events.
•Purpose: To be used based on the specific circumstances of a given critical incident,
large event, natural disaster, or community event that is taking place.
•Authorized Use: Only officers trained in the deployment and operations of the MIC are
authorized to operate it. Situations in which the MIC is authorized for use would include
but not be limited to critical incidents, emergencies, and natural disasters.
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Published with permission by Vernon Police Department ***DRAFT***Military Equipment - 4
Vernon Police Department
Vernon PD Policy Manual
Military Equipment
40 mm Launchers and Rounds:40 mm Launchers are utilized by Department personnel as
a less lethal tool to launch impact rounds or to deploy chemical agents.
•40 mm Single Shot Launcher, is a tactical single shot launcher which will launch a 40
mm less lethal round or deliver chemical agents.
•40 mm Exact Impact Sponge, is a less lethal 40 mm lightweight plastic and foam
projectile fired from a 40 mm launcher.
•40 mm Direct Impact OC is a is a less lethal 40 mm lightweight plastic and crushable
foam projectile fired from a single 40 mm launcher. It delivers OC irritant upon impact.
•40 mm Direct Impact Marking Round is a less lethal 40 mm lightweight plastic and
crushable foam projectile fired from a single 40 mm launcher. It delivers a marking
agent upon impact.
•Purpose: To limit the escalation of conflict where employment of lethal force is
prohibited or undesirable. Situations for use of the less lethal weapon systems may
include, but are not limited to:
o Self-destructive, dangerous and/or combative individuals
o Riot control and civil unrest incidents
o Potentially vicious animals
o Training exercises or approved demonstrations.
•Authorized Use: Only assigned operators who have completed the required POST
training shall be permitted to deploy the 40mm or the chemical agents.
Less Lethal Shotgun:The less lethal shotgun is a 12-gauge shotgun that has been designated
by an orange stock to be used to deploy the less lethal 12-gauge drag stabilized bean bag round.
•Purpose: To limit the escalation of conflict where employment of lethal force is
prohibited or undesirable. Situations for use of the less lethal weapon systems may
include, but are not limited to:
o Self-destructive, dangerous and/or combative individuals.
o Riot/crowd control and civil unrest incidents.
o Circumstances where a tactical advantage can be obtained.
o Potentially vicious animals.
o Training exercises or approved demonstrations.
•Authorized Use: All officers are trained in the 12 gauge less lethal shotgun as a less
lethal option by in-service training.
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Published with permission by Vernon Police Department ***DRAFT***Military Equipment - 5
Vernon Police Department
Vernon PD Policy Manual
Military Equipment
Specialized Firearms and Ammunition:
•Patrol Rifle: A rifle that fires a 5.56 mm or .223 caliber cartridge. The Vernon Police
Department utilizes an approximate 11.5-inch barrel. The 11.5-inch short-barreled
rifle allows a trained officer better control inside of structures, which allows the
officer to have greater accuracy than a handgun.
•9 mm Pistol Caliber Carbine (PCC): A 9 mm PCC is primarily used for training .
•.223 Caliber/5.56MM rifle rounds, 9 mm Luger, .40 Smith and Wesson, .45
Automatic, .357 Magnum, and .38 Special, handgun rounds: The Vernon Police
Department utilizes only new, commercially produced ammunition. Full Metal Jacket
bullets are used specifically for range practice which also reduces fouling in the
firearm. Duty ammunition is a specially designed hollow-point tip to have controlled
expansion to limit over penetration.
•Patrol Rifle Suppressors: A patrol rifle suppressor is designed to reduce the decibel
level of the rifle to protect the hearing of the user and anyone near the use of the rifle.
•Purpose: To be used as precision weapons to address a threat with more precision
and/or greater distances than a handgun, if present and feasible.
•Authorized Use: Only members that are Department certified are authorized to use a
patrol rifle. Prior to using a patrol rifle, officers must be certified by Department range
instructors in the operation of the firearm. Additionally, all members that operate any
patrol rifle are required to pass a range qualification quarterly. Officers will only use
departmental approved duty ammunition.
PepperBall Launcher: A device that discharges irritant projectiles.
•PepperBall Launcher: The PepperBall Launcher is a compressed-air powered launcher
designed to fire less lethal PepperBall projectiles. The PepperBall Launcher is a hopper
fed device.
•PepperBall Projectile. The PepperBall projectile contains a concentrated amount of
PAVA pepper powder, and is designed for direct impact and area saturation,
especially in confined, interior spaces.
•Purpose: To limit the escalation of conflict where deployment of lethal force is
prohibited or undesirable. Situations for the use of the less lethal weapon systems
may include but are not limited to:
o Self-destructive, dangerous, and/or combative individuals.
o Riot/crowd control and civil unrest incidents.
o Circumstances where a tactical advantage can be obtained.
o Potentially vicious animals.
o Training exercises or approved demonstrations.
•Authorized Use: Only those officers who have been trained in the use of PepperBall
launchers are authorized to use the PepperBall launchers.
Copyright Lexipol,LLC 2022/03/17,All Rights Reserved.
Published with permission by Vernon Police Department ***DRAFT***Military Equipment - 6
Vernon Police Department
Vernon PD Policy Manual
Military Equipment
707.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by
way of an ordinance adopting the military equipment policy. As part of the approval process, the
Chief of Police or the authorized designee shall ensure the proposed military equipment policy is
submitted to the governing body and is available on the Department website at least 30 days prior
to any public hearing concerning the military equipment at issue (Government Code § 7071). The
military equipment policy must be approved by the governing body prior to engaging in any of the
following (Government Code § 7071):
(a)Requesting military equipment made available pursuant to 10 USC § 2576a.
(b)Seeking funds for military equipment, including but not limited to applying for a grant,
soliciting or accepting private, local, state, or federal funds, in-kind donations, or other
donations or transfers.
(c)Acquiringmilitary equipmenteither permanentlyortemporarily, includingby borrowing
or leasing.
(d)Collaborating with another law enforcement agency in the deployment or other use of
military equipment within the jurisdiction of this department.
(e)Usinganyneworexistingmilitaryequipmentfor apurpose,inamanner,orbyaperson
not previously approved by the governing body.
(f)Solicitingor respondingto a proposalfor, or entering into an agreementwith, any other
person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the
use of military equipment.
(g)Acquiring military equipment through any means not provided above.
707.6 USE IN EXIGENT CIRCUMSTANCES
In exigent circumstances and with the approval of the Chief of Police or his/her designee, the
Department may acquire, borrow and/or use Military Equipment that is not included in the Military
Equipment Use Policy.
If the Police Department acquires, borrows, and/or uses Military Equipment in an Exigent
Circumstance, in accordance with this section, it must take all of the following actions:
•Provide written notice of that acquisition or use to the City Council within 30 days
following the commencement of such Exigent Circumstance, unless such information
is confidential or privileged under local, state or federal law.
•If it is anticipated that the use will continue beyond the Exigent Circumstance, submit
a proposed amended Military Equipment Use Policy to the City Council within 90
days following the borrowing, acquisition and/or use, and receive approval, as
applicable, from the City Council.
•Include the Military Equipment in the Department’s next annual Military Equipment
Report.
Copyright Lexipol,LLC 2022/03/17,All Rights Reserved.
Published with permission by Vernon Police Department ***DRAFT***Military Equipment - 7
Vernon Police Department
Vernon PD Policy Manual
Military Equipment
707.7 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this
jurisdiction unless the military equipment is approved for use in accordance with this policy.
Military equipment deployed or used by other jurisdictions that are providing mutual aid to this
jurisdiction shall comply with their respective military equipment use policies when rendering
assistance. Situations may arise where Vernon Police Department may deploy or use military
equipment owned by other law enforcement agencies.
If the Department is in another jurisdiction under mutual aid or operational collaboration
circumstances, Department members are required to adhere to the City of Vernon’s Military
Equipment Use Policy and all applicable Department policies and procedures, regardless of
operational jurisdiction.
707.8 ANNUAL REPORT
Uponapprovalof amilitaryequipmentpolicy, theChiefofPoliceorthe authorizeddesignee should
submit a military equipment report to the governing body for each type of military equipment
approvedwithin one year of approval, and annually thereafterfor as long as the military equipment
is available for use (Government Code § 7072).
The Chief of Police or the authorized designee should also make each annual military equipment
report publicly available on the department website for as long as the military equipment is
available for use. The report shall include all information required by Government Code § 7072
for the preceding calendar year for each type of military equipment in department inventory.
707.9 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold
at least one well-publicized and conveniently located community engagement meeting, at which
the Department should discuss the report and respond to public questions regarding the funding,
acquisition, or use of military equipment.
707.10 COMPLIANCE PROCEDURE
The Administration Lieutenant will ensure that all Department members comply with this policy.
The Administrative Lieutenant will conduct an annual audit with the assistance of the
Department’s Training Division. The Chief of Police or designee will be notified of any policy
violations, and, if needed, the violation(s) will be referred to the Professional Standards Bureau
and handled in accordance withVPDPolicy 1009 (Personnel Complaints).
Any member of the public can register a complaint, question, or concern regarding military
use equipment by contacting the Vernon Police Department's Administration via email at
PDadmin@covpd.org.A response to the complaint, question, or concern shall be completed
by the Department in a timely manner.
City Council Agenda Item Report
Submitted by: Brandon Gray
Submitting Department: Police Department
Meeting Date: April 19, 2022
SUBJECT
Police Department Vehicle Purchase
Recommendation:
Approve and authorize the issuance of a purchase order to National Auto Fleet Group for a
2022 Ford Ranger through the Sourcewell Master Vehicle Contract (091521-NAF) for
approximately $39,000 to replace one patrol vehicle in the Police Department Fleet.
Background:
The Vernon Police Department (VPD) conducts an annual assessment of the patrol vehicle
fleet to identify the vehicle(s) in need of replacement. The evaluation consists of assessing
the useful life of vehicles and equipment in terms of age, mileage, and usage. The vehicles
are also reviewed and analyzed for safety history and operating performance to determine if it
is appropriate to replace a vehicle or piece of equipment at a later date. After careful
evaluation, one patrol vehicle has been identified for replacement.
VPD has identified National Auto Fleet Group as a vendor that can deliver one 2022 Ford
Ranger XL, utilizing Sourcewell Master Vehicle Contract # 091521-NAF. The City of Vernon is
a member of Sourcewell, which offers members cooperative buying contracts.
Pursuant to Vernon Municipal Code (VMC) Section 3.32.110(A)(5), the purchase of the
proposed vehicle is exempt from competitive bidding, as Sourcewell’s practice ensures that
members receive the lowest price available using competitive bidding. The quote secured
from National Auto Fleet Group for this potential purchase is based on Sourcewell contract
pricing and, in the opinion of the Finance Director, it is to the advantage of the City to procure
the vehicle from the selected vendor.
City Council approval for this purchase is required pursuant to VMC Section 3.32.030(B) as in
the last 12 months, with this purchase (if approved), the City will have awarded the vendor
more than $100,000 in contracts.
The replaced vehicle will be taken out of the fleet inventory and will either be transferred to
another City Department, or sold at auction.
Fiscal Impact:
No general funds will be used for this purchase; however, an estimated cost of approximately
$39,000 will be charged to VPD's Capital Automobile Expenditures Account No.
011.1031.840000 / Project No. 206007.41. The funds in Project No. 206007.41 were deemed
abandoned and forfeited, and were transferred to the VPD under VMC 9.12.010.
Attachments:
1. National Auto Fleet Group 2022 Ford Ranger Quote
City Council Agenda Item Report
Submitted by: Adriana Ramos
Submitting Department: Public Utilities
Meeting Date: April 19, 2022
SUBJECT
Sale of Surplus Vernon Public Utilities Vehicle to Petrelli Electric, Inc.
Recommendation:
Approve and authorize the City Administrator to execute the Purchase and Sale Agreement
with Petrelli Electric, Inc. (Petrelli Electric), in substantially the same form as submitted, for the
sale of one (1) Ford E450 Super Duty Van.
Background:
With the impending retirement of the Vernon Public Utilities (VPU) Senior Metering Technician
on April 21, 2022, and the recent retirement of an additional VPU Metering Technician on July
7, 2021, VPU plans to surplus the fleet vehicle utilized by the Metering Division. Subsequently,
pursuant to the City’s Purchasing Manual parameters related to salvaging surplus City
property, VPU is recommending that City Council approve the sale of one (1) 2006 Ford #450
Super Duty Van (VIN #: 1FDXE45S16DA68421) to Petrelli Electric.
Petrelli Electric has confirmed its desire to enter into a Purchase Agreement with the City to
procure the surplus vehicle. Petrelli Electric is the current VPU contractor providing high
voltage electric systems service, maintenance and utility support to the Vernon Electric and
Fiber Optic Systems. After a competitive selection process, on March 15, 2022 Petrelli Electric
was awarded a Labor and Materials Contract with an effective date of July 18, 2022.
VPU’s surplus vehicle has been utilized by the VPU Metering Division up to this point,
however, with the upcoming retirement of the Senior Metering Technician, the department will
no longer have a need for the vehicle. One contracted service that Petrelli Electric provides
the City is the oversight and installation of VPU metering facilities, as well as inspection,
maintenance, troubleshooting, and repair on existing customer metering facilities. Moving
forward, Petrelli Electric will be responsible for electric meter upgrades, meter replacements,
meter repair, and emergency response associated with all customer meter issues. The sale
and purchase of this vehicle will enable a seamless transition of these duties.
It is recommended that the City Council authorize the sale of VPU’s surplus vehicle and
authorize the City Administrator to execute the necessary Purchase and Sale Agreement. The
proposed agreement with Petrelli Electric has been reviewed and approved as to form by the
City Attorney’s Office.
Fiscal Impact:
Proceeds from the sale will result in $9,350 to Vernon Public Utilities Account No.
055.9000.466900.
Attachments:
1. Purchase and Sale Agreement
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PURCHASE AND SALE AGREEMENT
BETWEEN PETRELLI ELECTRIC, INC.
AND
CITY OF VERNON
This Purchase and Sale Agreement is made and entered into this 19 day of April, 2022 between
the PETRELLI ELECTRIC, INC., a California corporation, hereinafter referred to as “BUYER”,
and CITY OF VERNON, a California charter City and California municipal corporation,
hereinafter referred to as “SELLER”. BUYER and SELLER may be referred to in this Agreement
individually as “Party” and jointly as “Parties”.
I. Recitals
A. SELLER has determined that certain surplus property is not functionally or
economically suitable for further CITY OF VERNON use and has negotiated the
sale of one (1) Ford E450 Super Duty Van, as described in Exhibit A
“Equipment”, attached hereto (Equipment);
B. SELLER has provided BUYER with fair market pricing on Equipment in the total
amount of $9,350 as set forth in Exhibit B “Price” attached hereto;
C. SELLER has provided BUYER with a Liability Release Agreement, attached
hereto as Exhibit C.
NOW, THEREFORE, Parties agree as follows:
II. General Provisions
A. Assignment
Parties shall not assign all or any part of this Agreement and/or make any
subcontract to perform any obligation hereunder, either in whole or in part,
without the prior written consent of the Parties.
B. Attorneys’ Fees
In the event any legal proceeding is instituted to enforce any term or provision of
this Agreement, the prevailing party in said legal proceeding shall be entitled to
recover attorneys' fees and costs from the opposing party in an amount
determined by the court to be reasonable.
C. Compliance with Laws
Parties shall perform their respective obligations as set forth in this Agreement
pursuant to all applicable Federal, State, and local statutes, regulations, and
ordinances whether now in force or hereinafter enacted.
D. Conflicts or Inconsistencies
Exhibit C shall take precedence in the event of any conflict or inconsistency
between the terms of Exhibit C and this Agreement. In the event of any conflict or
inconsistency between the provisions of this Agreement and any other Exhibit,
the terms of this Agreement shall strictly prevail.
E. Dispute Resolution
1. Administrative Remedies. Disputes regarding the interpretation or
application of this Agreement shall first be submitted to the other Party for
investigation and resolution. The Parties will make a good faith and
reasonable effort to reach an agreeable resolution. Any disputes that
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cannot be resolved in that manner shall be submitted to non-binding
arbitration as set forth in the Formal Remedies below.
2. Formal Remedies. In the event the Administrative Remedy does not
resolve the dispute, the alleged injured Party may, but is not required to
as a condition of pursuing any legal remedies, serve a demand for
arbitration on the Party claimed to be in default ("Defaulting Party"). The
Parties will continue to perform obligations under this Agreement so long
as the Defaulting Party diligently commences to cure the alleged default
in the event there is imminent danger to the public health, safety or
general welfare resulting from the default, the Defaulting Party shall take
immediate action to cure the immediate threat.
Within five (5) business days of receipt of the demand, and providing the
default remains uncured, the matter shall be submitted to non-binding
arbitration. The Parties shall make reasonable efforts to jointly select an
arbitrator using any reasonable method including selection by chance.
The arbitration shall be conducted in accordance with the California
Arbitration Act (Code of Civil Procedure section 1280 et seq.) The
arbitrator shall render a decision with written findings. The costs of
arbitration (excluding each Party’s own costs) shall be borne by the
Parties equally. Either Party that is not satisfied with the arbitrator's
decision shall be entitled to pursue all remedies available in a court of law
or equity.
F. Documentation
PARTIES shall maintain complete and accurate records with respect to
ownership and transfer of Equipment and the costs incurred under this
Agreement for a minimum period of three (3) years, or for any longer period
required by law, from the date of final payment made under this Agreement. All
such records shall be provided to requesting Party within ten (10) days of
request.
G. Effective Date and Term
This Agreement is effective as of the date of mutual execution and shall remain
in full force and effect until delivery of the Equipment to BUYER, and BUYER’s
removal of the Equipment from SELLER’s property whereupon this Agreement
shall terminate, subject to the survival of terms as provided herein.
H. Force Majeure
1. The time period(s) specified for performance pursuant to this Agreement
shall be extended because of any delays due to unforeseeable causes
beyond the control and without the fault or negligence of the delayed
Party if the delayed Party shall within three (3) days of the
commencement of such delay notify the other Party in writing of the
causes of the delay.
2. The sole remedy shall be termination or an extension of the Agreement
pursuant to this Section and neither Party shall not be entitled to recover
damages against the other Party.
I. Governing Law
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1. This Agreement shall be governed by and construed in accordance with
the laws of the State of California.
2. Venue for any litigation arising out of this Agreement shall be the Superior
Court of the County of Los Angeles.
J. Independent Contractor
Parties and their respective employees, officers, and agents are independent
contractors under this Agreement and shall not be construed for any purpose to
be employees of the other Party.
K. Entire Agreement
1. This Agreement, together with all exhibits hereto and which are
incorporated by reference herein, supersedes any and all other
Agreements, either oral or in writing, between the Parties with respect to
the subject matter herein.
2. Each Party acknowledges that it has had the benefit of advice of
competent legal counsel with respect to its decision to enter this
Agreement that no representation, statement, or promise by any party
which is not embodied herein shall be valid or binding.
3. Any modification of this Agreement shall be effective only if it is in writing
signed by the Parties.
L. Counterparts
This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the
same instrument.
M. Severability
If any term or provision of this Agreement or the application thereof to any person
or circumstance shall, to any extent, be held invalid or unenforceable, the
remainder of this Agreement, or the application of its terms and provisions to
persons and circumstances other than those to which it has been held invalid or
unenforceable shall not be affected thereby, and each term and provision of this
Agreement shall be valid and enforceable to the fullest extent permitted by law.
N. Termination
1. Termination for Convenience. Parties may terminate this Agreement for
convenience by providing not less than ten (10) days prior,written Notice
of Termination to the other Party prior to payment and delivery of the
Equipment. This Agreement may be terminated at any time upon mutual
agreement of the Parties. In such events, Parties shall have no further
rights hereunder.
2. Cure Notice. Either Party may provide a Notice to Cure Default, therein
specifying the acts or omissions constituting the alleged default, and
demanding that the default be cured within ten (10) days, to the other
Party. If the default remains uncured, termination for cause shall be
effective, without further notice, at the end of the default cure period.
3. Termination for Cause. Either Party may terminate this Agreement for
cause immediately by providing a written Notice of Termination therein
-4-
specifying the acts or omissions constituting the default, to the other
Party. In such event, Parties shall have all other rights and remedies as
provided by law.
4. Payment. SELLER shall reimburse BUYER for all amounts paid to
SELLER within a reasonable time after termination of this Agreement.
5. Release of Liability. Termination or expiration of this Agreement does
not release either Party from any and all claims, damages or other liability
incurred prior to termination or expiration.
O. Waiver
A waiver by either Party of any breach, of any term, covenant or condition
contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
III. Special Provisions
A. Acceptance
Acceptance of the Equipment shall be deemed to occur upon delivery of the keys
to BUYER and BUYER’s removal of the Equipment from the SELLER’s pro perty.
B. Insurance
SELLER shall maintain and provide proof of insurance coverage on the
Equipment until such time SELLER delivers the Equipment to BUYER and
removes the Equipment from SELLER’s property. SELLER’s program of self-
insurance approved by BUYER shall satisfy the requirements of this Section.
C. Ownership and Authority to Sell and Purchase
1. SELLER warrants that it owns the Equipment, free and clear of any
encumbrances, and that it is authorized to sell Equipment to BUYER.
2. BUYER represents that it is authorized to purchase Equipment from
SELLER.
D. Removal, Transportation, and Operation
1. SELLER, at its sole expense, shall provide reasonable instructions and
documentation pertaining to the maintenance and operation of the
Equipment to BUYER at the time of delivery and prior to BUYER
removing the Equipment from SELLER’s property.
2. BUYER, at its sole liability, risk and expense, shall be responsible for
removing, loading, transporting, and operating the Equipment.
E. Sale of Equipment
SELLER hereby sells to BUYER and BUYER hereby purchases from SELLER
the Equipment for the price set forth in Exhibit B.
F. Title and Risk of Loss
1. Title to and risk of loss or damage to the Equipment purchased by
BUYER will pass to BUYER upon delivery and removal of the Equipment
from SELLER’s property.
-5-
2. BUYER assumes all risks and liability whatsoever resulting from the
possession, use or disposition of the Equipment. SELLER will have no
liability with respect to the Equipment sold to BUYER, including having no
liability for indirect, incidental or consequential damages.
IV. Representatives and Signatories
A. Notices and Designated Representatives
1. Any and all notices, demands, invoices, and written communications
between the Parties shall be addressed to the invidviduals set forth below
who are primarily responsible for their respective party’s performance.
2. Such notices shall be deemed as received by addressee within two
working days after deposit in the United States mail or an express mail
carrier or by verifiable electronic means.
SELLER BUYER
City of Vernon Petrelli Electric, Inc.
Finance Department
4305 Santa Fe Avenue 11615 Davenport Road
Vernon, CA 90058 Agua Dulce, CA 91390
Scott Williams, Finance Director Cindy Petrelli, President
323.583.8811 ext: 849 661.268.7312
SWilliams@ci.vernon.ca.us
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first set forth above:
SELLER
Contractor Name: City of Vernon
Corporation Type: a California charter City and California municipal
corporation
Printed Name: Carlos Fandino
Title: City Administrator
Signature:
ATTEST
Printed Name: Lisa Pope
Title: City Clerk
Signature:
APPROVED AS TO FORM
Printed Name: Zaynah N. Moussa
Title: Interim City Attorney
Signature:
BUYER
Petrelli Electric, Inc.
Corporation Type: a California corporation
Printed Name: Cindy Petrelli
Title: President
Signature:
BUYER
Printed Name:
Title:
Signature:
-7-
Attachments (incorporated documents):
Exhibit A – Equipment
Exhibit B – Price
Exhibit C – Liability Release Agreement
Exhibit A - Equipment
a
VERNON PUBLIC UTILITES
VEHICLE DESCRIPTION
Make/Model:2006 Ford E450 Super Duty
Unit #:L1049
License Plate #:1142744
Weight:16,000
Odom.:74,764
Fuel:Gas
VIN #:1FDXE45S16DA68421
Warranty
Equipment is sold “AS IS, WHERE IS, WITH ALL FAULTS”.
SELLER MAKES NO REPRESENTATION OR WARRANTY, STAUTORY, EXPRESS OR
IMPLIED WITH RESPECT TO THE USED EQUIPMENT INCLUDING MAKING NO
WARRANTY THAT THE USED EQUIPMENT WILL BE MERCHANTABLE OR FIT FOR
ANY PARTICULAR PURPOSE. THE ONLY WARRANT OR REPRESENTATION MADE
BY SELLER IS A WARRANTY THAT SELLER IS THE LEGAL OWNER OF THE USED
EQUIPMENT.
End of Exhibit A
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Exhibit B – Price
I. Purchase Price
As full and complete consideration for the Equipment, BUYER shall pay the sum of Nine
Thousand, Three Hundred Fifty Dollars($9,350) USD, not including any applicable taxes
and or fees to SELLER.
II. Taxes and Fees
BUYER is responsible to pay all applicable sales taxes and fees associated with the
acquisition of Equipment.
III. Payment
BUYER shall make payment of the full purchase price to SELLER on or before the
BUYER takes possession of the Equipment.
End of Exhibit B
-1-
Exhibit C – Liability Release Agreement
Petrelli Electric, Inc. (“Petrelli”), hereby voluntarily releases, discharges, waives, and relinquishes
any and all liabilities, losses, claims or causes of action against the City of Vernon (“City”), and
any of its elected officials, officers, agents, employees, or volunteers, including those for personal
injury, property damage, or wrongful death arising, directly or indirectly, as a result of the purchase
of one (1) one Ford E450 Super Duty Van (“Equipment”), described in Exhibit A and referred to
collectively as the “Equipment”.
Petrelli further agrees to indemnify, defend, and hold harmless the City and its elected officials,
officers, agents, employees, and volunteers from any and all loss, damage, liability, claim,
action, or expense whatsoever, including without limitation, attorney fees and other costs of
defense, which in any way arise out of, result from, or are connected with, the purchase,
possession, retention, use, ownership, sale, or transfer of the Equipment by Petrelli or its officers,
owners, agents, or employees, even though such liability may arise, in part, out of the negligence
of the City, its elected officials, officers, agents, employees, or volunteers.
On behalf of its officers, owners, agents, and employees, Petrelli agrees not to make any claim
against, sue, attach the property of, or prosecute City or its elected officials, officers, agents,
employees, or volunteers, for any liabilities, losses, claims or causes of action arising, directly or
indirectly, as a result of Petrelli’s acceptance, retention, use, ownership, sale, or transfer of the
Equipment.
Petrelli further acknowledges that City makes no guarantee or warranty for the Equipment. The
Equipment is accepted in an “as is” condition.
Petrelli voluntarily accepts and expressly assumes all risks, dangers, and hazards that may arise
from its acceptance, retention, use, ownership, sale, or transfer of the Equipment.
The undersigned hereby warrants that he/she is an authorized agent of Petrelli, whose name
appears below, and by his/her signature does hereby bind it to the terms, conditions, and limitations
of this release document.
Petrelli Electric, Inc.
_____________________________ _____________
Cindy Petrelli Date
President
11615 Davenport Road
Agua Dulce, CA 91390
City Council Agenda Item Report
Submitted by: Margarita Beltran
Submitting Department: Public Works
Meeting Date: April 19, 2022
SUBJECT
Change Order No. 1 to Contract No. CS-1349 with EBS General Engineering Inc., and Notice
of Completion for Americans with Disabilities Act (ADA) Improvements at the Intersection of
Pacific Boulevard / Vernon Avenue and Santa Fe Avenue
Recommendation:
A. Find that the proposed action is categorically exempt under the California
Environmentally Quality Act (CEQA) in accordance with CEQA Guidelines Section
15301 (Existing Facilities), part (c) (existing highways, streets and sidewalks), because
the project consists of the maintenance, repair, or minor alteration of existing streets for
ADA improvements and involves no expansion of an existing use;
B. Approve and Authorize the City Administrator to execute Change Order No.1 in the
amount of $18,329.15 for unexpected changed conditions in the ADA Improvements at
the Intersection of Pacific Blvd. / Vernon Ave. and Santa Fe Ave. Project (CS-1349);
C. Accept the work of EBS General Engineering Inc. as related to City Contract No. CS-
1349; and
D. Authorize the Director of Public Works to execute and submit the Notice of Completion
for the project to the Los Angeles County Recorder’s Office.
Background:
On September 21, 2021, the City Council awarded City Contract No. CS-1349 ADA
Improvements at the Intersection of Pacific Blvd. / Vernon Ave. and Santa Fe Ave. in the
amount of $90,281 to EBS General Engineering Inc., and authorized a contingency of
$15,000. This project consisted of the construction of new ADA ramps, pedestrian push
buttons, sidewalks, curbs, and gutters to comply with the City of Vernon ADA Transition Plan.
Due to unforeseen conditions related to the project, additional work was necessary on two
occasions. Staff is now requesting approval of Change Order No. 1 for the additional work as
the amount of the Change Order exceeds the approved contingency amount. Change Order
No.1 includes the additional work as detailed below.
During the demolition of the existing sidewalk, two abandoned culvert drains were found near
the northeast and southwest corner ramps at the intersection of Santa Fe Ave. and Vernon
Avenue. Both culverts (concrete and steel) had to be removed to construct the new sidewalk
and access ramps at its new adjusted grade to meet ADA standards. These modifications also
created the need to reconstruct the additional sidewalk, curb, and gutter. The total extra cost
for these changes is $5,721.05.
In addition, during the construction of the southwest corner disabled access ramp, it was
discovered that the existing traffic signal pole that was originally planned to remain in its place
was not anchored properly, causing the pole to be unstable and creating a hazard to the
public. The traffic signal pole was secured with temporary weights and plates while a new 6-
foot deep foundation (per Caltrans Standard ES-7B, type 1-A) was poured at a new location.
The total cost for these changes was $12,608.10.
The CS-1349 project was completed on March 8, 2022, in accordance with the project
specifications and City Staff expectations. The Change Order No.1 and Notice of Completion
were each approved as to form by the City Attorney's Office.
Fiscal Impact:
Funds for the ADA Improvements at the Intersection of Pacific Blvd./ Vernon Ave. and Santa
Fe Ave. were approved by City Council on September 21, 2021 in the amount of $90,281 (with
a contingency of $15,000, and a potential total amount of $105,281), and budgeted in Fiscal
Year 2021-22. Sufficient funds for the entire amount of $18,329.15 for Change Order No. 1
are available in Account No. 011.1043.900000 (General Fund - Street Operations - Capital
Expenditures, Public Works Department).
Attachments:
1. Change Order No. 1 - City Contract CS-1349
2. Notice of Completion - City Contract CS-1349
CITY OF VERNON
PUBLIC WORKS DEPARTMENT
CONTRACT CHANGE ORDER NO. 1 SUPPLEMENT NO. SHEET 1 OF 1 SHEETS
PROJECT: ADA Improvements at the intersection of Pacific Blvd. /
Vernon Ave. and Santa Fe Ave. Contract No. CS-1349
FEDERAL PROJECT No. EDEN Project No.
REQUESTED BY: City of Vernon Supplemental No.
TO: EBS General Engineering, Inc. CONTRACTOR
You are hereby directed to make the herein described changes to the plans and specifications or do the following described work
not previously included in the plans and specifications of this contract. Except as specifically modified herein, all terms and
conditions of the original contract remain in full force and effect, and apply to the additional work as if said work was originally
included in the contract.
This Change Order No. 1 provides for the additional work, for an amount not to exceed $18,329.15, described
below:
Removal of two existing concrete and steel culverts.
Place base and compact subgrade.
Reconstruction of sidewalk, curb and gutter.
Place temporary wire and plates at existing traffic signal pole.
Pour new foundation per Caltrans Standard ES-7B, type 1A.
Rework damaged traffic signal head.
Pull 12 & 3 conductor
Remove forms and cleanup.
Details of the requested additional work are described in the attached correspondence from Contractor dated February 3,
2022, February 10, 2022, February 14, 2022, and February 22, 2022.
Contract Amount (Base Bid) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,281.00
Amount of This Change Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,329.15
Amount of Previous Change Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0
Total Change Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,329.15
Modified Contract Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,610.15
By reason of this change order the time of
completion will be adjusted as follows: 0 additional calendar days
Approved: Date:
Carlos Fandino, City Administrator
Attest: Date:
Lisa Pope, City Clerk
We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all labor,
equipment and materials, including overhead, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will
accept as full payment therefore the prices shown above.
Accepted Date: Contractor:
By: Title:
c: Project File/Contractor/Purchasing Rev. 01/13
AEW 20068 REPORT NO. 1
EBS # 21233
PROJECT
NAME
DATE REPORT 2/3/22
NAME,
LAST
NAME'
FIRST POSITION ST / OT
HOURLY
RATE HOURS
EXTENDED
AMOUNT
SCHAEFER RYAN FOREMAN ST 74.60$ 4.00 298.40$
PORTILLO ANDY GRP IV ST 82.49$ 4.00 329.96$
MARTINEZ GILBERT GRP IV ST 66.68$ 4.00 266.72$
-$
-$
-$
-$
-$
-$
ST 895.08$ OT -$
10% LABOR SURCHARGE STRAIGHT TIME 89.51$
10% LABOR SURCHARGE OVERTIME -$
SUBSISTENCE NO.@ -$
TRAVEL EXPENSE NO.@ -$
OTHER -$
DISCP CLASS ID MFG ID MODEL ID RATE OT FACTOR
ST/OT HOURS
EXTENDED
AMOUNT
Bobcat TRACS >50 A 34.04 0.89 ST 2.00 68.08$
Dump Truck 3 AXEL T&TT 60 73.97 0.88 ST 2.00 147.94$
Jump Jack COMHG COMP 250 9.32 0.81 ST 1.00 9.32$
ST -$
ST -$
ST -$
QTY UNIT UNIT PRICE UNIT COST TAX
EXTENDED
AMOUNT
1 EA 300 300.00$ 300.00$
6.71 TN 2 13.42$ 1.27$ 14.69$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
QTY UNIT UNIT PRICE
EXTENDED
AMOUNT
-$
-$
TOTAL COST OF LABOR A 984.59$
TOTAL COST OF EQUIPMENT AND MATERIALS B 540.03$
+33% ON LABOR COST C 324.91$
PRINT +15% ON EQUIPMENT & MATERIAL COST D 81.01$
SIGN SUBCONTRACTOR TOTAL E -$
F
+5% (SUB PROFIT)G -$
REP.SUBTOTAL H 1,930.54$
BOND 1%I 19.31$
1,949.85$
Approval of Extra Work has been accepted by City signature on field extra work ticket. Due to the changed condition caused
by this Extra Work, there may be an interruption to the schedule. The effects of the changed activity sequence and duration are
now being reviewed. When the analysis is complete you will be notified of the Cost Impact. Please take note that all rights are
reserved to claim all damages resulting from effects unforeseen at this time, including costs and Attorney's Fees if applicable,
resulting from this Claim.
LABOR
DAILY EXTRA WORK REPORT
AMOUNT AUTHORIZED
ADA Improvements at the Intersection of Pacific Blvd/ Vernon Ave. and Santa
Fe Ave PROJECT NUMBER
DATE WORK COMPLETE
DESCRIPTION OF WORK: REMOVE CONCRETE AND STEEL FROM CULVERT DRAINS. PLACE BASE IN AND COMPACT SUBGRADE.
CLASS
LABORER
OPERATOR
LABORER
MATERIALS / RENTALS
DUMP
BASE
SUB CONTRACTORS
WILLIE ELLIS
TOTAL THIS REPORT
Lic. #A720016
general engineering, inc,
FIELD MEASUREMENT
APPROVAL SHEET
Job No.
1320 E SD(TH ST., SURE 100 •CORONA, CA 92879-1700
Tel: (951)279-68~ •FAX: (951) 279-6832 Date:
Customer Name ' ~.17`/ ~'`~~ V ~ ~'~`~1C~ l`~ Phone
Job Title &Location ~ ~ \2, ~C~- ;-~~C_ ~~\~ ~1_V~ ~ ~~~`~~~ '~1~ Phase #_
Contract #
Project Supt. Job Phone No.
Map Page - - --
Tract #
ITEM DESCRIPTION ACTUAL MEASURED QUANTITIES COMMENTS
~ i~L~ l ~. f~ f it ~(
/` ; ~ i C..
~~ ~ r~~~`.. _. ~ ~ S tti~~- ~.~ _ Lt~c ~ `~
,,,,tit ~- ~~-~Ac E- ??P t~~; ~~ C ~
t. i ~'E~~~c~~~ ~- ~~1`C — w~ ~.
f ~,., ~. ~- BUT T ~ (~
.~..~ `.'. t r~ c~ ~_.~ ~ ~- Q- ~~ it 1.~`~ C ;~ ;f ~'; ~ rf
NO RESPONSIBILITY FOR DAMAGE TO THE ABOVE MEASURED ITEMS WILL BE ACCEPTED UNLESS SPECIFICALLY NOTED AND INITIALED.
j ~ ' # _.~_.~._.._ i
EBS General Engineering, Inc. -Signature Date Accepted (Authorized Customer Signature) Date
Additional sidewalk constructed
Additional removal and reconstruction
of pavement.
Additional removal and reconstruction
of curb & gutter
Item No.Units Contract Quanty Contract Unit Cost Completed Quantity Payment Balance
1 CY 75 $ 293.00 70 (1,465.00)$
2 SF 2,640 $ 5.90 2,658 106.20$
3 EA 3 $ 6,730.00 3 -$
4 LF 40 $ 66.00 79 2,574.00$
5 SF 210 $ 36.00 281 2,556.00$
6 EA 8 $ 172.50 8 -$
7 EA 8 $ 86.25 8 -$
8 EA 8 $ 402.50 8 -$
9 EA 8 $ 1,063.75 8 -$
10 EA 8 $ 862.50 8 -$
11 EA 1 $ 1,640.00 1 -$
90,281.00$
94,052.20$
3,771.20$
0
0
0
0
0
0
Installation of 2" wide color coding with 1"
wide dark borders located directly above
control button per the City of Vernon ADA
Transition Plan Appendix D: Pedestrian
Signals.
Quantity Balance
(5)
18
0
39
71
Remove and construct accessibility ramp
per Caltrans Standard Plan No. RSP A88A,
and City of Vernon ADA Transition Plan.
Unclassified excavation to be paid by Bid
Item No. 1
Remove and construct curb and gutter per
City of Vernon Standard Plan No. PV582.
Unclassified excavation to be paid by Bid
Item No. 1
Remove and reconstruct 6” of C2-PG-70-10
over 6” of CMB. Unclassified excavation to
be paid by Bid Item No. 1
Description
Unclassified excavation – Saw-cut,
removal, and disposal of asphalt concrete,
aggregate base and soil.
Construct 3.5-inch thick concrete sidewalk
per City of Vernon Standard Plan No.
PV582. Unclassified excavation to be paid
by Bid Item No. 1
Contract Bid Amounts
City of VernonContract No. CS-1349
Provide and install tactile arrow aligned
parallel to the crosswalk direction on the
sign per the City of Vernon ADA Transition
Plan Appendix D: Pedestrian Signals.
Provide and install a voice or tone audible
indication of the WALK interval at the
pedestrian signal device per the City of
Vernon ADA Transition Plan Appendix D:
Pedestrian Signals.
Provide and install a vibrotactile signal
device that is integrated with the
pedestrian pushbutton per the City of
Vernon ADA Transition Plan Appendix D:
Pedestrian Signals.
Provide a button locator tone per the City
of Vernon ADA Transition Plan Appendix
D: Pedestrian Signals.
Provide and install a 2” diameter push
button and housing per the City of Vernon
ADA Transition Plan Appendix D:
Pedestrian Signals.
Extra QuantitiesTotals
Total Contract Amount
Total Amount of Completed Quantities
**Quantities per Field Measurement
Sheet on 2/10/22
AEW XX REPORT NO. 2
EBS # 21233
PROJECT
NAME
DATE REPORT 2/14/22
NAME,
LAST
NAME'
FIRST POSITION ST / OT
HOURLY
RATE HOURS
EXTENDED
AMOUNT
-$
-$
-$
-$
-$
-$
-$
-$
-$
ST -$ OT -$
10% LABOR SURCHARGE STRAIGHT TIME -$
10% LABOR SURCHARGE OVERTIME -$
SUBSISTENCE NO.@ -$
TRAVEL EXPENSE NO.@ -$
OTHER -$
DISCP CLASS ID MFG ID MODEL ID RATE OT FACTOR
ST/OT HOURS
EXTENDED
AMOUNT
ST -$
ST -$
ST -$
ST -$
ST -$
ST -$
QTY UNIT UNIT PRICE UNIT COST TAX
EXTENDED
AMOUNT
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
QTY UNIT UNIT PRICE
EXTENDED
AMOUNT
1 LS 8,773.44$ 8,773.44$
-$
TOTAL COST OF LABOR A -$
TOTAL COST OF EQUIPMENT AND MATERIALS B -$
+15% ON LABOR COST C -$
PRINT +15% ON EQUIPMENT & MATERIAL COST D -$
SIGN SUBCONTRACTOR TOTAL E 8,773.44$
F
+5% (SUB PROFIT)G 438.67$
REP.SUBTOTAL H 9,212.11$
BOND 1%I 92.12$
9,304.23$
Approval of Extra Work has been accepted by City signature on field extra work ticket. Due to the changed condition caused
by this Extra Work, there may be an interruption to the schedule. The effects of the changed activity sequence and duration are
now being reviewed. When the analysis is complete you will be notified of the Cost Impact. Please take note that all rights are
reserved to claim all damages resulting from effects unforeseen at this time, including costs and Attorney's Fees if applicable,
resulting from this Claim.
WILLIE ELLIS
TOTAL THIS REPORT
SUB CONTRACTORS
CROSSTOWN ELECTRICAL & DATA
MATERIALS / RENTALS
CLASS
DATE WORK COMPLETE
DESCRIPTION OF WORK: PLACE TYPE 1A ON TEMP WEIGHTS AND PLATES WITH CHAIN AND LOCK. DUG AND POURED NEW TYPE 1A
FOOTING AND POURED SURROUNDING SIDEWALK AREA
LABOR
DAILY EXTRA WORK REPORT
AMOUNT AUTHORIZED
ADA Improvements at the Intersection of Pacific Blvd/ Vernon Ave. and Santa
Fe Ave PROJECT NUMBER
AEW XX REPORT NO. 3
EBS # 21233
PROJECT
NAME
DATE REPORT 2/22/22
NAME,
LAST
NAME'
FIRST POSITION ST / OT
HOURLY
RATE HOURS
EXTENDED
AMOUNT
-$
-$
-$
-$
-$
-$
-$
-$
-$
ST -$ OT -$
10% LABOR SURCHARGE STRAIGHT TIME -$
10% LABOR SURCHARGE OVERTIME -$
SUBSISTENCE NO.@ -$
TRAVEL EXPENSE NO.@ -$
OTHER -$
DISCP CLASS ID MFG ID MODEL ID RATE OT FACTOR
ST/OT HOURS
EXTENDED
AMOUNT
ST -$
ST -$
ST -$
ST -$
ST -$
ST -$
QTY UNIT UNIT PRICE UNIT COST TAX
EXTENDED
AMOUNT
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
-$ -$ -$
QTY UNIT UNIT PRICE
EXTENDED
AMOUNT
1 LS 3,115.39$ 3,115.39$
-$
TOTAL COST OF LABOR A -$
TOTAL COST OF EQUIPMENT AND MATERIALS B -$
+15% ON LABOR COST C -$
PRINT +15% ON EQUIPMENT & MATERIAL COST D -$
SIGN SUBCONTRACTOR TOTAL E 3,115.39$
F
+5% (SUB PROFIT)G 155.77$
REP.SUBTOTAL H 3,271.16$
BOND 1%I 32.71$
3,303.87$
Approval of Extra Work has been accepted by City signature on field extra work ticket. Due to the changed condition caused
by this Extra Work, there may be an interruption to the schedule. The effects of the changed activity sequence and duration are
now being reviewed. When the analysis is complete you will be notified of the Cost Impact. Please take note that all rights are
reserved to claim all damages resulting from effects unforeseen at this time, including costs and Attorney's Fees if applicable,
resulting from this Claim.
WILLIE ELLIS
TOTAL THIS REPORT
SUB CONTRACTORS
CROSSTOWN ELECTRICAL & DATA
MATERIALS / RENTALS
CLASS
DATE WORK COMPLETE
DESCRIPTION OF WORK: SANTA FE / VERNON - REMOVE TEMP WIRE AND WEIGHTS AND PLATES. SW CORNER TYPE 1 - RELOCATE
EXISTING TYPE 1 TO NEW FOUNDATION. REWORK DAMAGED TRAFFIC SIGNAL HEAD. PULL 12 & 3 CONDUCTOR. REMOVE FORMS AND CLEAN UP.
LABOR
DAILY EXTRA WORK REPORT
AMOUNT AUTHORIZED
ADA Improvements at the Intersection of Pacific Blvd/ Vernon Ave. and Santa
Fe Ave PROJECT NUMBER
RECORDING REQUESTED BY AND WHEN
RECORDED, RETURN TO:
City of Vernon
Attention: City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE
For the benefit of City of Vernon
No fee per Government Code Section 27383 APN: N/A
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT, PURSUANT TO CIVIL CODE SECTION 9024:
1. The undersigned is the owner, or corporate officer of the owner, of the interest or estate below in the
property hereinafter described.
2. The full name of the owner is: The City of Vernon
3. The full address of the owner is: 4305 Santa Avenue, Vernon, CA 90058
4. The nature of the interest or estate of the owner is: In Fee.
5. A work of improvement on the property hereinafter described was completed and accepted on April 19,
2022. The work done was: Americans with Disabilities (ADA) Improvements at the Intersection of Pacific
Blvd./Vernon Ave. and Santa Fe Ave., City Contract No. CS-1349.
6. The name of the contractor, if any, for such work of improvement was EBS General Engineering, Inc.
The property on which said work of improvement was completed is in the City of Vernon, County of Los
Angeles, State of California, and is described as follows: Construction of new ADA ramps, sidewalks, curbs,
and gutters at the intersection of Pacific Blvd./Vernon Avenue and Santa Fe Avenue.
Dated: April 19, 2022
I, Daniel Wall, Director of Public Works, verify the foregoing Notice of Completion on behalf of the City of
Vernon; I have read said Notice and know the contents thereof; and I have personal knowledge of the facts
stated herein. I declare under penalty of perjury that the foregoing is true and correct.
_______________________________
Daniel Wall, Director of Public Works
On __________, before me, Lisa Pope, City Clerk for the City of Vernon, personally appeared Daniel Wall,
Director of Public Works for the City of Vernon, who proved to me on the basis of satisfactory evidence to be
the person whose name is subscribed to the within instrument and acknowledged to me that he executed the
same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf of
which he acted, executed the instrument.
WITNESS my hand and official seal.
_________________________________
Lisa Pope, City Clerk
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
City Council Agenda Item Report
Submitted by: Adriana Ramos
Submitting Department: Public Utilities
Meeting Date: April 19, 2022
SUBJECT
Blanket Purchase Contract with Cormetech, Inc.
Recommendation:
A. Find that the proposed action is categorically exempt from California Environmental
Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301,
because the project consists of the maintenance, repair or minor alteration of an existing
facility and involves negligible or no expansion of an existing use; and
B. Authorize issuance of a blanket Purchase Contract in an amount not-to-exceed $200,000
with Cormetech, Inc., for labor and materials to replace the Selective Catalytic Reduction
(SCR) catalyst needed at the Malburg Generating Station (MGS) during the MGS Spring
2022 Outage.
Background:
On November 16, 2021, City Council adopted Resolution No. 2021-41, approving a Purchase
and Sale Agreement (PSA) with Bicent (California) Malburg LLC (Bicent) for the acquisition of
MGS. Under the PSA, the City is required to assume or otherwise comply with certain vendor
contracts previously entered by Bicent. In addition, the City was obligated to assume the
liability incurred for parts received between Bicent and Cormetech, Inc. (Cormetech).
Before the acquisition, Bicent entered into Purchase Order (PO) No. MGS21896 in the amount
of $423,065.26 with Cormetech for the supply, delivery, and complete installation of the
catalyst banks; SCR1 and SCR2 as well as Purchase Order No. MGS22472 for related
catalyst storage services in the amount of $8,275.00. Payment on the balance of both PO’s
was authorized as part of the PSA. The combined balance already authorized for payment is
currently $129,240.26. However, upon review of the work and cost necessary to complete the
catalyst replacement job, City staff has determined a total of $200,000 is necessary. The
difference of $70,759.74 is largely due to the initial quote for PO MGS21896 not accounting for
prevailing wages, taxes, and contingency amounts. Prevailing wages were not required by
Bicent as a private entity but are required by the City as a public agency. Although the bulk of
the proposed expenditure was previously authorized by Council as part of the MGS PO's
included in the PSA, staff and the vendor determined it would be best to enter into a new
Contract between the City and Cormetech for the outstanding work and include the amounts
noted above that were previously unaccounted for. Accordingly, staff is seeking Council
approval of a blanket Purchase Contract for $200,000 with Cormetech for labor and materials
to replace the catalysts needed at MGS during the Malburg Spring 2022 Outage.
MGS utilizes a Selective Catalytic Reduction (SCR) system to reduce Nitrous Oxide (NOx)
emissions. The existing SCR catalyst in this system has reached its end of life and must be
replaced to ensure MGS operates within permitted emissions limits. Cormetech is the Original
Equipment Manufacturer (OEM) for the catalyst and will install a like-kind replacement.
Cormetech has manufactured and shipped the SCR catalyst to storage and will deliver and
install the SCR catalyst to MGS during the Malburg Spring 2022 Outage, scheduled from May
1, 2022 through May 31, 2022. The SCR catalyst is required by State and Federal regulations
for plant operation. Upon completion of the catalyst replacement, MGS will perform a required
Relative Accuracy Test Audit (RATA) by a third party to ensure plant operation meets
emissions standards.
The proposed Purchase Contract with Cormetech is exempt from competitive bidding and
competitive selection pursuant to Sections 3.32.110 A(2) and 3.32.110 B(1) of the Vernon
Municipal Code (VMC) as Cormetech is the Original Equipment Manufacturer, the needed
supplies and services are only available from Cormetech. City Council approval of the
proposed purchase contract is required pursuant to VMC 3.32.030(a), which states that all
contracts shall be approved only by the City Council except contracts with a total value over
the lifetime of the contract of up to $100,000.
Fiscal Impact:
The fiscal impact associated with the proposed purchase contract for $200,000 is $70,759.74
as $129,240.26 was previously authorized as part of the PSA. Of the $70,759.74, $61,329.02
will be funded by bond proceeds and $9,430.72 is available in the VPU Generation and
Operations Account No. 055.9190.500230.
Attachments:
1. Cormetech, Inc. Purchase Contract Cost Breakdown
Proposed Purchase Contract with Cormetech, Inc.
Cost Breakdown
# Description Value Date (est)
1 Installation w/ Prevailing Wages $119,230 6/3/2022
2 Contingency $17,529.74 6/3/2022
3 Storage $8,275 6/3/2022
4 Trans to MGS $12,000 (estimate, pre- pay and add at cost
+10%)
6/24/2022
5 Reuse Transportation $12,000 (estimate, pre- pay and add at cost
+10%)
6/24/2022
6 Sales Tax (estimate, billed at rate
that prevails at time of delivery)
$30,965.26
This is 10.25% of the Catalyst Value
6/17/2022
Total Value - $200,000
City Council Agenda Item Report
Submitted by: Adriana Ramos
Submitting Department: Public Utilities
Meeting Date: April 19, 2022
SUBJECT
rPlanet Earth Los Angeles, LLC Request to Consider Items Regarding Electrical Consumption
Hurdles
Recommendation:
A. Approve and authorize the City Administrator to grant the request from rPlanet Earth Los
Angeles, LLC (Customer) to consider that the January 2022 Consumption Hurdle target
has been achieved; and
B. Approve and authorize the City Administrator to grant the request from rPlanet Earth Los
Angeles, LLC (Customer) to waive the third hurdle target of 8 megawatts (MW) and to
release the final deposit of $416,667 once the third electrical consumption hurdle of
8MW is met.
Background:
On August 18, 2015, City Council adopted Resolution No. 2015-57, approving a transaction
with Fruitland Owner, LLC (COX) regarding an Assignment and Assumption of Purchase and
Sale Agreement (Agreement) for property located at 3200 Fruitland Avenue. After two
previous amendments related to the terms and conditions of the property sale, on January 19,
2016, City Council adopted Resolution No. 2016-04, authorizing the execution of a third
amendment to the Assignment and Assumption of Purchase and Sale Agreement by and
between the City and COX.
In accordance with Section 8 of the Agreement and as reiterated in Section B of the Escrow
Agreement dated February 2, 2016, the Customer is expected to utilize at the Property an
average minimum, for a trailing 12-month period, of (a) 3.3 megawatts of electrical power on or
before January 1, 2019, (b) 4.8 megawatts of electrical power on or before January 1, 2021,
and (c) 8 megawatts of electrical power on or before January 1, 2023 (each (a) through (c)
being a “Consumption Hurdle”).
rPlanet Earth is a manufacturer of plastic goods from recycled materials. It has built a one-of-
a-kind plastic recycling and manufacturing plant in Vernon. The Customer operates a 302,000-
square-foot plastics recovery and production facility which requires a much larger electric
service delivery than what is normally delivered to other new development properties. The
Customer has become an industry leader in the production of low carbon footprint and
recycled polyethylene terephthalate-based packaging.
On November 17, 2020, City Council authorized the City Administrator to approve the
Customer ’s request to adjust the established Electric Consumption Hurdle date from January
1, 2021 to January 1, 2022, as a one-time-only exception, due to setbacks experienced as a
result of COVID-19. The proposed extension was granted to allow the Customer time to
recover and potentially re-strategize in order to meet the required Consumption Hurdle.
On January 27, 2022, the City received a letter from the Customer (Attachment 1) requesting
two items for consideration with regard to the electrical Consumption Hurdles:
The first request asks that the City consider that the Customer has achieved the January
2022 Consumption Hurdle target. For the 12-month period associated with the January
2022 Consumption Hurdle, the Customer averaged 4.74 MW (.06 less than the target of
4.8 MW). The customer started 2021 with a consumption average of 4 MW but ended
the 12-month period with a consumption of 5.36 MW.
The second request asks that the third electrical consumption hurdle of 8 MW be waived;
or, that a date no longer be associated with the hurdle, so that upon attainment of the
targeted 8 MW the City releases the final deposit of $416,667. Their correspondence
states that the Customer has experienced a delay in the commencement of a project that
will double their production volume and electricity consumption. The Customer is
confident that once the project is complete, they will exceed the 8 MW of electrical
consumption.
Staff recommends that the City consider the Customer's second electrical consumption hurdle
of 4.8 MW achieved, and that the City no longer associate a date with the 8MW third electrical
consumption hurdle, authorizing the release of the Customer's $416,667 deposit upon meeting
the 8MW target. The Customer has experienced unforeseen challenges and has encountered
uncertain timing on planned expansions, but is confident that they will meet and exceed their
third electrical consumption commitment of 8MW.
It is in the best interest of the City to grant the Customer ’s requests to demonstrate its capacity
to be a good partner who is able to aid in the operational recovery of its business community
during volatile times, and to support the Customer's important work as they continue the
journey to combat climate change through an operation that is dedicated to closed-loop
recycling of post-consumer plastics.
If approved, the City will memorialize this action via a letter directly to the Customer
(Attachment 2), as there has been a change in ownership of the property. The City Attorney's
Office has reviewed and approved the proposed correspondence to the Customer. Staff will
be pursuing additional information regarding the apparent change in property ownership and
will address any necessary contractual modifications separately.
Fiscal Impact:
There is no fiscal impact associated with the proposed actions as the deposit held has
remained in escrow and has no budgetary impacts on revenues or expenditures. Additionally,
VPU has not included the Customer's anticipated consumption level for the third consumption
hurdle in its revenue projections.
Attachments:
1. Letter from rPlanet Earth Los Angeles, LLC, dated January 27, 2022
2. Letter to rPlanet Earth Los Angeles re Consumption Hurdles
3. Resolution No. 2015-57
4. Resolution No. 2016-04
1
January 27, 2022
Carlos Fandino
City Administrator
City of Vernon, CA
Re: rPlanet Earth Electrical Consumption Hurdles
Dear Mr. Fandino,
We have 2 items for consideration with regard to the electrical consumption hurdles.
Request #1:
We kindly request that you consider that we have achieved the second electrical consumption
hurdle of 4.8 MW for calendar year 2021 since for the full year we averaged 4.74 MW, just .06
less than the target. We started 2021 with a consumption of about 4 MW and ended
December with consumption of 5.36 MW. From May to December of 2021 we averaged 5 MW
per month.
For the last 10 months of 2021 (March to December) our peak consumption averaged 4.8
MW.
4.0 4.2 4.2 4.2 4.4
4.8
4.7
5.1 5.1 5.1 5.3 5.4
3.0
3.5
4.0
4.5
5.0
5.5
Jan-21Feb-21Mar-21Apr-21May-21Jun-21Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21MWrPlanet Earth MW Peak Consumption
Full Year 2021
2
Over the next few months our electrical consumption will continue its upward trend. We are in
the process of installing a Crystallizer which is large piece of equipment that can process 6,000
pounds/ hour of PET flake and its electrical consumption is rated at 875 KVA. The Crystallizer
processes the flake at high temperatures to condition it for extrusion into recycled PET (“rPET”)
sheet. This piece of equipment is currently being installed and is expected to be operational by
the end of Q1 2022, which will considerably boost our electricity usage.
As you’re aware, we expected our business to have expanded at a faster rate than it has, with
much of our progress being slowed for the past 2 years by Covid. For example, production has
been impacted by employees testing positive for Covid and others being out on quarantine per
LA County Dept of Public Health’s protocols due to exposure to individuals either inside or
outside the plant who have tested positive – which has impacted labor availability and
production, especially with the highly transmissible Omicron variant. For the past 2 years
supply chain disruptions have delayed equipment shipments and installations as well as product
launches and shipments. In addition, due to the pandemic it has been difficult for prospective
customers to visit our plant or our salespeople to travel to visit prospective customers – which
is a critical part of the new business development process.
We are seeing very strong demand for our packaging and other products since they contain
recycled PET and the carbon footprint/ GHG associated with them is among the lowest, if not
the lowest in the world. Due to this strong demand we expect Phase I of the plant to be sold
out this year. As the year progresses and the plant transitions to consistently operating at full
capacity, we anticipate attaining peak electrical consumption near or above 6 MW.
Request #2:
As you recall, the Purchase and Sale Agreement for the property between rPlanet Earth and the
City of Vernon has a third electrical consumption hurdle of 8 MW to be attained on or before
January 1, 2023. The third hurdle was predicated upon the expectation that we would have
installed a complete parallel (mirror) line by the end of 2021 that would double our production
volumes and electricity consumption. Last year we signed an agreement to purchase a
complete recycling line that is scheduled to be delivered in a number of shipments to our
property over the first half of 2022. The timing of its installation (which we call Phase II) will be
predicated upon selling out our existing Phase I capacity. We have ongoing conversations with
several customers/ potential customers for very large volume commitments that will justify the
installation of the equipment. In parallel, we have ongoing conversations with customers/
potential customers that could have us initiate a piecemeal approach to the Phase II buildout
where we would install an additional preform injection molder and/ or more sheet extrusion
and thermoforming equipment as customer demand warrants addition production capacity.
Due to the uncertain timing of our expansion and the lead time to install equipment we do not
expect to average 8 MW of consumption for full year 2022. Whether we expand using a
piecemeal approach or more quickly with the installation of most/ all of the planned
equipment, we are confident we will ultimately far exceed 8MW of electrical consumption.
Optonet eorth
Since Phase ll of our plant is essentially a mirror image of Phase I it implies an ongoing
consumption rate of 11-12 MW or more.
We respectfully ask that the third hurdle of 8 MW be waived or that a date no longer be
associated with the hurdle, so that upon attainment of the third hurdle of 8MW that the final
deposit of $416,667 be released to us.
Please do not hesitate to call me at
further discuss.
if you have any questions or would like to
We greatly appreciate the City's willingness to consider our requests.
Best regards,
fr,1,*A*/rA
Robert Daviduk
cEo
rPlanet Earth
3
CITY ADMINISTRATION
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583‐8811
Exclusively Industrial
April 19, 2022
Bob Daviduk, Chief Executive Officer
rPlanet Earth of Los Angeles, LLC
3200 Fruitland Avenue
Vernon, CA 90058
Re: Requests to Deem 2022 Electric Consumption Hurdle Date Achieved and Waive
Consumption Hurdle Date for 2023
Dear Mr. Daviduk,
As per the certain Assignment and Assumption of Purchase and Sale Agreement dated August 4,
2015, by and between the City of Vernon (City), and Fruitland Owner LLC (former owner of the
property located at 3200 Fruitland Avenue) (Assignment), and Section B of the Escrow
Agreement dated February 2, 2016 (Escrow Agreement), certain financial assurance
requirements were established as security to the City for anticipated electrical power usage by
the property owner or rPlanet Earth (Customer) along with three Electric Consumption Hurdles
on specified dates.
Please let this acknowledgement serve as a response to correspondence dated January 27, 2022
in which rPlanet Earth requested that the January 1, 2022 Electric Consumption Hurdle be
deemed achieved by the required date, and that the third Electric Consumption Hurdle date of
January 1, 2023 be waived.
With an understanding that COVID-19 has impacted the progress of rPlanet Earth’s expansion
and increased production over the last two years, the City has considered the company’s
requests, and its efforts and progress toward achievement of its consumption hurdles. On April
19, 2022, the Vernon City Council heard the matter and agreed as follows:
1. In accordance with Section 8 of the Assignment and Section B of the Escrow Agreement,
the City finds the Customer’s January 1, 2022 Electric Consumption Hurdle to be
achieved by the required date.
April 19, 2022 Page 2
City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 – Telephone (323) 583‐8811
2.The City agrees that the January 1, 2023 Electric Consumption Hurdle date set forth in
Section 8 of the Assignment and Section B of the Escrow Agreement is waived and, upon
attainment of the third usage target of 8 MW, the City agrees to release the final financial
assurance deposit of $416,667.00 to the Customer.
Please be advised that all other provisions of the Agreement and related Amendments shall
remain in full force and effect. The City will be pursuing additional information regarding the
apparent change in property ownership and will address any necessary contractual modifications
separately.
If you require any additional information, please feel free to contact me.
Sincerely,
Carlos R. Fandino, Jr.
City Administrator
City Council Agenda Item Report
Submitted by: Angela Melgar
Submitting Department: Finance/Treasury
Meeting Date: April 19, 2022
SUBJECT
Updated Official Statement for City of Vernon Electric System Revenue Bonds, 2022 Series A
Recommendation:
Adopt Resolution No. 2022-10 authorizing and approving an updated Official Statement for
certain Electric System Revenue Bonds; and authorizing certain other matters relating thereto.
Background:
On November 30, 2021, the City Council adopted Resolution No. 2021-43 authorizing the
issuance of its Electric System Revenue Bonds, 2022 Series A (the 2022 Bonds) for the
purpose of refunding the outstanding Electric System Revenue Bonds, 2012 Series A, and a
portion of the City's outstanding Electric System Revenue Bonds, 2012 Taxable Series B,
issuance not to exceed $65,000,000.
In accordance with Resolution No. 2021-43 and pursuant to the terms of a Forward Delivery
Contract of Purchase with the City’s underwriter, Goldman Sachs & Co. LLC, executed on
December 7, 2021, the $52,070,000 sale of 2022 Bonds is required to be issued on May 5,
2022. In connection with the issuance of the 2022 Bonds on May 5, 2022, the Forward
Delivery Contract of Purchase requires that the City disseminate an Updated Official
Statement in order to revise the Official Statement that the Underwriter used to market the
2022 Bonds at the time that the Forward Delivery Contract of Purchase was executed.
By adopting Resolution No. 2022-10, the City Council is approving the form of the Updated
Official Statement.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Resolution No. 2022-10
RESOLUTION NO. 2022-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
AUTHORIZING AND APPROVING AN UPDATED OFFICIAL STATEMENT
FOR CERTAIN ELECTRIC SYSTEM REVENUE BONDS; AND
AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO
SECTION 1. Recitals.
A. The City of Vernon (the “City”) is a municipal corporation and a chartered
city of the State of California organized and existing under its Charter and the Constitution
of the State of California.
B. Pursuant to Resolution No. 2021-43 (the “2021 Resolution”), the City
previously authorized the issuance of not to exceed $65,000,000 of refunding revenue
bonds.
C. On December 7, 2021, and in accordance with the 2021 Resolution, the
City executed a forward delivery purchase contract, dated December 7, 2021 (the
“Forward Purchase Contract”) with Goldman Sachs & Co. LLC (the “Underwriter”) with
respect to the sale of $52,070,000 City of Vernon Electric System Revenue Bonds, 2022
Series A (the “2022 Bonds”).
D. One of the conditions to the issuance of the 2022 Bonds set forth in the
Forward Purchase Contract is the delivery of an updated Official Statement (the “Updated
Official Statement”) to the Underwriter.
E. There has been prepared and submitted to this meeting the form of an
Updated Official Statement to be delivered by the City to the Underwriter.
F. The City Council now desires to authorize and approve the form and the
execution and delivery of the Updated Official Statement and the performance of such
acts as may be necessary or desirable in connection with the execution and delivery of
the Updated Official Statement.
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 Updated
Official Statement relating to the 2022 Bonds, in substantially the form attached hereto
as Exhibit A, and made a part hereof as though set forth in full herein. Each of the Mayor,
the Mayor Pro Tem, the City Administrator, the Treasurer and the Finance Director (each
an “Authorized Officer”), acting singly, is hereby authorized to execute and deliver the
Resolution No. 2022-10
Page 2 of 152 _______________________
Updated Official Statement, in the name of and on behalf of the City, in substantially the
form attached hereto with such changes, insertions and deletions as may be approved
by the Authorized Officer executing the Updated Official Statement, said execution being
conclusive evidence of such approval. Each Authorized Officer is authorized to sign a
certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of
1934 relating to the Updated Official Statement. Upon execution of such certificate, the
Underwriter is directed to deliver copies of the Updated Official Statement to all actual
initial purchasers of the 2022 Bonds.
SECTION 4. The Mayor, the Mayor Pro Tem, the City Administrator, the
Treasurer, the Finance Director, the City Clerk, the City Attorney, the Director of Public
Utilities and any other proper official, officer or employee of the City, acting singly, be and
each of them hereby is authorized to execute and deliver any and all documents and
instruments and to do and cause to be done any and all acts and things necessary or
convenient in carrying out the actions authorized by this Resolution and the transactions
contemplated by the documents and instruments approved or authorized by this
Resolution, and the authorization, execution, delivery and performance by the City of its
obligations under such documents and instruments, including, without limitation, making
any determinations or submission of any documents or reports which are required by any
rule or regulation of any governmental entity in connection with the execution and delivery
of the Updated Official Statement or any other documents referred to in this Resolution
or related to the 2022 Bonds, providing for the giving of written directions and notices,
and the securing of any necessary third party approvals in connection with the issuance
of the 2022 Bonds or as required by the Updated Official Statement or any other
documents referred to in this Resolution or related to the 2022 Bonds.
SECTION 5. All actions heretofore taken by any committee of the City Council, or
any official, officer, employee, representative or agent of the City, in connection with the
issuance and sale of the 2022 Bonds or the authorization, execution, delivery, or
performance of the City’s obligations under the documents and instruments approved or
authorized by this Resolution including but not limited to the delivery of redemption and
defeasance notices in connection therewith, and the other actions contemplated by this
Resolution, are hereby ratified, approved and confirmed.
/ / /
/ / /
/ / /
Resolution No. 2022-10
Page 3 of 152 _______________________
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 19th day of April, 2022.
________________________
MELISSA YBARRA, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
ZAYNAH N. MOUSSA,
Interim City Attorney
EXHIBIT A
Resolution No. 2022-10
Page 4 of 152
________________________
Stradling Yocca Carlson & Rauth
Draft of 4/12/22
4868-6614-1977v4/022487-0010
NEW ISSUE—FULL BOOK-ENTRY ONLY Ratings: See the caption “RATINGS”
In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel, under existing statutes, regulations,
rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements
described in this Official Statement, interest (and original issue discount) on the 2022 Bonds is excluded from gross income for federal income
tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. In
the further opinion of Bond Counsel, interest (and original issue discount) on the 2022 Bonds is exempt from State of California personal
income tax. See the caption “TAX MATTERS.”
$52,070,000
CITY OF VERNON
ELECTRIC SYSTEM REVENUE BONDS, 2022 SERIES A
Dated: 2022 Bonds – Date of Delivery Due: As set forth on the inside front cover page
This cover page contains certain information for general reference only. It is not intended to be a summary of the security or
terms of this issue. Investors are advised to read this entire Updated Official Statement (referred to herein as the Official Statement)
to obtain information essential to the making of an informed investment decision. Capitalized terms used but not defined on this cover
page have the meanings given in this Official Statement.
The City of Vernon Electric System Revenue Bonds, 2022 Series A (the “2022 Bonds”) were sold to the Underwriter pursuant
to a forward delivery purchase contract dated December 7, 2021. This Official Statement is being provided in connection with the
delivery of the 2022 Bonds on or about May 5, 2022 in order to update the Official Statement dated December 7, 2021, as
supplemented by a supplement to the Official Statement dated January 7, 2022, delivered by the City at the time of sale of the 2022
Bonds. From the date of this Official Statement, investors should review this Official Statement and not the official statement for the
2022 Bonds dated December 7, 2021, as supplemented by a supplement to the Official Statement dated January 7, 2022, in making an
investment decision with respect to the 2022 Bonds. This Official Statement should be read in its entirety and contains information
that should be considered in making investment decisions with respect to the 2022 Bonds. Investors are advised to read the entire
Official Statement to obtain information essential to the making of an informed investment decision
The 2022 Bonds are being issued to provide funds: (i) to refund and defease all of the City’s outstanding Electric System Revenue
Bonds, 2012 Series A and a portion of the City’s outstanding Electric System Revenue Bonds, 2012 Taxable Series B; and (ii) to pay costs of
issuance of the 2022 Bonds, all as more fully described in this Official Statement. See “PLAN OF FINANCE – Refunding of the Refunded
2012 Bonds” and “FORWARD DELIVERY OF THE 2022 BONDS” herein.
The 2022 Bonds are being issued in fully registered form and, when issued, will be registered in the name of Cede & Co., as nominee
of The Depository Trust Company, New York, New York. Purchasers of the 2022 Bonds will not receive securities representing their
beneficial ownership in the 2022 Bonds purchased. Interest on the 2022 Bonds is payable on February 1 and August 1 of each year,
commencing August 1, 2022 until the respective maturities of the 2022 Bonds. The principal of and interest on the 2022 Bonds are payable by
The Bank of New York Mellon Trust Company, N.A., as Trustee, to Cede & Co. and such interest and principal payments are to be disbursed
to the Beneficial Owners of the 2022 Bonds through their nominees.
The 2022 Bonds are subject to redemption as more fully described in this Official Statement.
The 2022 Bonds are being issued pursuant to the Indenture of Trust, dated as of September 1, 2008, by and between the City and the
Trustee, as amended and supplemented (the “Indenture”), including as supplemented by the Seventh Supplemental Indenture of Trust, dated as
of December 1, 2021. The 2022 Bonds are limited obligations of the City payable solely from Net Revenues, which consist of Revenues of the
City’s Electric System remaining after the payment of Operation and Maintenance Expenses, and from amounts on deposit in certain funds and
accounts created under the Indenture.
The 2022 Bonds are payable from Net Revenues on a parity with $354,240,000 principal amount of Electric System Revenue Bonds
which will be outstanding following the issuance of the 2022 Bonds. The City may incur additional obligations payable from Net Revenues on
a parity with the obligation to pay principal of and interest on the 2022 Bonds, subject to the terms and conditions of the Indenture, as more
fully described in this Official Statement.
THE OBLIGATION OF THE CITY TO PAY PRINCIPAL OF AND INTEREST ON THE 2022 BONDS PURSUANT TO THE
INDENTURE DOES NOT CONSTITUTE AN OBLIGATION FOR WHICH THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY
GENERAL TAXES OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY GENERAL TAXES. THE OBLIGATION OF THE
CITY TO PAY PRINCIPAL OF AND INTEREST ON THE 2022 BONDS IS A SPECIAL OBLIGATION OF THE CITY PAYABLE
SOLELY FROM NET REVENUES, AND DOES NOT CONSTITUTE A DEBT OF THE CITY OR OF THE STATE OF CALIFORNIA OR
OF ANY POLITICAL SUBDIVISION THEREOF IN CONTRAVENTION OF ANY CONSTITUTIONAL OR STATUTORY DEBT
LIMITATION OR RESTRICTION.
THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR REFERENCE ONLY. IT IS NOT A SUMMARY OF THIS
ISSUE. INVESTORS ARE ADVISED TO READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO
THE MAKING OF AN INFORMED INVESTMENT DECISION. Capitalized terms used and not defined on the cover of this Official Statement
have the meanings ascribed thereto in this Official Statement.
Resolution No. 2022-10
Page 5 of 152
________________________
4868-6614-1977v4/022487-0010
____________________________________
MATURITY SCHEDULE – See Inside Front Cover Page
____________________________________
The 2022 Bonds are offered when, as and if issued and received by the Underwriter, subject to the approval of the valid, legal and
binding nature of the 2022 Bonds by Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel, and certain other
conditions. Certain legal matters will be passed upon for the City by Stradling Yocca Carlson & Rauth, a Professional Corporation, as
Disclosure Counsel, and by the City Attorney, for the Underwriter by its counsel, Chapman and Cutler LLP, and for the Trustee by its counsel.
It is anticipated that the 2022 Bonds will be available for delivery through the facilities of The Depository Trust Company on or about May 5,
2022.
Goldman Sachs & Co. LLC
Dated: April __, 2022
Resolution No. 2022-10
Page 6 of 152
________________________
4868-6614-1977v4/022487-0010
MATURITY SCHEDULE
$52,070,000
CITY OF VERNON
ELECTRIC SYSTEM REVENUE BONDS, 2022 SERIES A
BASE CUSIP®† 924397
Maturity Date
(August 1) Principal Amount Interest Rate Yield
CUSIP®†
Suffix
2023 $4,690,000 5.00% 0.80%EP3
2024 4,885,000 5.00 0.95 EQ1
2025 5,130,000 5.00 1.10 ER9
2026 5,405,000 5.00 1.28 ES7
2027 950,000 5.00 1.46 ET5
2028 1,000,000 5.00 1.65 EU2
2029 1,055,000 5.00 1.77 EV0
2030 1,105,000 5.00 1.86 EW8
2031 1,160,000 5.00 1.93 EX6
2032 1,220,000 5.00 2.00 EY4
2033 1,285,000 5.00 2.04C EZ1
2034 1,350,000 5.00 2.08C FA5
2035 1,420,000 5.00 2.11
C FB3
2036 1,490,000 5.00 2.13
C FC1
2037 1,565,000 5.00 2.16
C FD9
2038 1,650,000 5.00 2.19C FE7
2039 5,295,000 5.00 2.20
C FF4
2040 5,565,000 5.00 2.22
C FG2
2041 5,850,000 5.00 2.24
C FH0
F-3
4868-6614-1977v4/022487-0010
F-3
4868-6614-1977v4/022487-0010
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf
of the American Bankers Association by FactSet Research Systems Inc. All rights reserved. CUSIP® data herein is provided by
CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS
database. CUSIP® numbers are provided for convenience of reference only. Neither the City nor the Underwriter takes any
responsibility for the accuracy of such numbers.
C Yield to first optional redemption date of August 1, 2032 at par.
Resolution No. 2022-10
Page 7 of 152
________________________
4868-6614-1977v4/022487-0010
CITY OF VERNON
COUNTY OF LOS ANGELES
STATE OF CALIFORNIA
CITY COUNCIL
Melissa Ybarra, Mayor
William “Bill” Davis, Mayor Pro Tem
Crystal Larios, Council Member
Leticia Lopez, Council Member
Judith Merlo, Council Member
STAFF
Carlos R. Fandino, Jr., City Administrator
Scott Williams, Finance Director/Treasurer
Abraham Alemu, General Manager of Public Utilities
Zaynah Moussa, Esq., Interim City Attorney
SPECIAL SERVICES
Bond Counsel and Disclosure Counsel
Stradling Yocca Carlson & Rauth, a Professional Corporation
Newport Beach, California
Municipal Advisor
BLX Group LLC
Los Angeles, California
Trustee
The Bank of New York Mellon Trust Company, N.A.
Los Angeles, California
Verification Agent
Causey Demgen & Moore P.C.
Denver, Colorado
Resolution No. 2022-10
Page 8 of 152
________________________
4868-6614-1977v4/022487-0010
No dealer, broker, salesperson or other person has been authorized by the City or the Underwriter to give any
information or to make any representations other than those contained in this Official Statement in connection with the
offering made hereby and, if given or made, such other information or representations must not be relied upon as having
been authorized by the City or the Underwriter. This Official Statement does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the 2022 Bonds by a person in any jurisdiction in which it is
unlawful for such person to make such an offer, solicitation or sale.
This Official Statement is not to be construed as a contract with the purchasers of the 2022 Bonds. Statements
contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly
so described herein, are intended solely as such and are not to be construed as a representation of facts.
The Underwriter has provided the following sentence for inclusion in this Official Statement:
The Underwriter has reviewed the information in this Official Statement in
accordance with, and as a part of, its responsibilities to investors under the federal
securities laws as applied to the facts and circumstances of this transaction, but the
Underwriter does not guarantee the accuracy or completeness of such information.
The information set forth herein has been obtained from official sources which are believed to be reliable, but
it is not guaranteed as to accuracy or completeness by the Underwriter. The information and expression of opinions
herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder
shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the
date hereof.
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT
TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 2022 BONDS AT A
LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH
STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY
OFFER AND SELL THE 2022 BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING
AS AGENT AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE
COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME
BY THE UNDERWRITER.
CERTAIN STATEMENTS CONTAINED IN THIS OFFICIAL STATEMENT REFLECT NOT
HISTORICAL FACTS BUT FORECASTS AND “FORWARD-LOOKING STATEMENTS.” NO ASSURANCE
CAN BE GIVEN THAT THE FUTURE RESULTS DISCUSSED HEREIN WILL BE ACHIEVED, AND ACTUAL
RESULTS MAY DIFFER MATERIALLY FROM THE FORECASTS DESCRIBED HEREIN. IN THIS RESPECT,
THE WORDS “ESTIMATE,” “PROJECT,” “ANTICIPATE,” “EXPECT,” “INTEND,” “BELIEVE” AND SIMILAR
EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, SECTION 21E OF THE
UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND SECTION 27A OF THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED. ALL PROJECTIONS, FORECASTS,
ASSUMPTIONS, EXPRESSIONS OF OPINIONS, ESTIMATES AND OTHER FORWARD-LOOKING
STATEMENTS ARE EXPRESSLY QUALIFIED IN THEIR ENTIRETY BY THE CAUTIONARY STATEMENTS
SET FORTH IN THIS OFFICIAL STATEMENT.
The 2022 Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon an
exemption contained in such act. The 2022 Bonds have not been registered or qualified under the securities laws of any
state. The Indenture has not been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon an
exemption contained in such act.
The City maintains a website. However, the information presented there is not part of this Official Statement
and should not be relied upon in making an investment decision with respect to the 2022 Bonds. Unless specified
otherwise, references to websites included herein and the information or links contained therein are not incorporated
into, and are not part of, this final official statement for purposes of, and as that term is defined in, Rule 15c2-12 of the
United States Securities and Exchange Commission.
Resolution No. 2022-10
Page 9 of 152
________________________
i
4868-6614-1977v4/022487-0010
TABLE OF CONTENTS
Page
INTRODUCTION ................................................................................................................................................ 1
Purpose of Official Statement ........................................................................................................................... 1
Authority ........................................................................................................................................................... 1
Use of Proceeds ................................................................................................................................................ 1
Security and Sources of Payment ..................................................................................................................... 1
Debt Service Reserve Fund ............................................................................................................................... 2
Redemption Provisions ..................................................................................................................................... 3
Continuing Disclosure ...................................................................................................................................... 3
Other Matters .................................................................................................................................................... 3
PLAN OF FINANCE ............................................................................................................................................ 3
General .............................................................................................................................................................. 3
Refunding of the Refunded 2012 Bonds ........................................................................................................... 3
ESTIMATED SOURCES AND USES OF FUNDS ............................................................................................ 5
DEBT SERVICE SCHEDULE ............................................................................................................................. 6
THE 2022 BONDS ............................................................................................................................................... 6
General .............................................................................................................................................................. 6
Redemption Provisions ..................................................................................................................................... 7
SECURITY AND SOURCES OF PAYMENT .................................................................................................... 7
Pledge Effected by the Indenture ...................................................................................................................... 7
Deposit and Application of Revenues............................................................................................................... 9
Payments to Trustee for Bonds ....................................................................................................................... 10
Rate Covenant ................................................................................................................................................. 11
Debt Service Reserve Fund ............................................................................................................................. 11
Expense Stabilization Fund ............................................................................................................................ 12
Outstanding Electric System Obligations ....................................................................................................... 13
Additional Parity Obligations ......................................................................................................................... 13
Transfers to General Fund .............................................................................................................................. 14
Limitations on Remedies ................................................................................................................................ 15
GENERAL INFORMATION REGARDING THE CITY AND THE SERVICE AREA .................................. 16
General ............................................................................................................................................................ 16
Governance and Management ........................................................................................................................ 16
Budget Process................................................................................................................................................ 18
Employees ...................................................................................................................................................... 18
City Insurance ................................................................................................................................................. 18
Cybersecurity .................................................................................................................................................. 19
COVID-19 ...................................................................................................................................................... 19
THE ELECTRIC SYSTEM ................................................................................................................................ 20
General ............................................................................................................................................................ 20
Power Supply Resources ................................................................................................................................ 21
Renewable Energy Resources ......................................................................................................................... 28
Integrated Resource Plan ................................................................................................................................ 30
Transmission, Interconnections and Distribution Facilities ............................................................................ 31
Developments Affecting the Power Supply .................................................................................................... 31
Wildfire Mitigation Considerations ................................................................................................................ 35
Seismic Activity and Other Natural Disasters ................................................................................................ 36
Customers, Retail Energy Sales, Revenues and Demand ............................................................................... 37
Resolution No. 2022-10
Page 10 of 152
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ii
4868-6614-1977v4/022487-0010
Electric Rates .................................................................................................................................................. 37
Largest Customers .......................................................................................................................................... 41
Capital Requirements ...................................................................................................................................... 43
Outstanding Electric System Parity Obligations ............................................................................................. 43
ELECTRIC SYSTEM FINANCIAL AND RELATED INFORMATION ......................................................... 44
Financial Statements ....................................................................................................................................... 44
Financial Policies ............................................................................................................................................ 45
Available Cash ................................................................................................................................................ 46
Summary of Operating Results ....................................................................................................................... 46
Adoption of New GASB Statement Affecting Fiscal Year 2018 ................................................................... 48
Projected Operating Results and Debt Service Coverage ............................................................................... 48
Employee Benefit Obligations ........................................................................................................................ 51
FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY ................................................................. 56
Federal Energy Legislation ............................................................................................................................. 57
Federal Regulation of Transmission Access ................................................................................................... 57
Federal Policy on Cybersecurity ..................................................................................................................... 58
Other Federal Legislation ............................................................................................................................... 58
Environmental Issues ...................................................................................................................................... 58
Other Factors .................................................................................................................................................. 61
CONSTITUTIONAL LIMITATIONS ON TAXES AND FEES ....................................................................... 16
Articles XIIIC and XIIID of the State Constitution ........................................................................................ 63
Future Initiatives ............................................................................................................................................. 64
APPROVAL OF LEGAL PROCEEDINGS ....................................................................................................... 64
LITIGATION ..................................................................................................................................................... 64
TAX MATTERS................................................................................................................................................. 65
RATINGS ........................................................................................................................................................... 66
MUNICIPAL ADVISOR ................................................................................................................................... 67
UNDERWRITING ............................................................................................................................................. 67
FORWARD DELIVERY OF THE 2022 BONDS ............................................................................................. 68
General ............................................................................................................................................................ 68
Certain Terms Concerning Forward Delivery ................................................................................................ 68
Certain Considerations .................................................................................................................................... 69
Rating Risk ..................................................................................................................................................... 69
Secondary Market Risk ................................................................................................................................... 69
Market Value Risk .......................................................................................................................................... 69
Federal Tax Proposals ..................................................................................................................................... 70
CONTINUING DISCLOSURE .......................................................................................................................... 70
FINANCIAL INTERESTS ................................................................................................................................. 70
MISCELLANEOUS ........................................................................................................................................... 70
APPENDIX A FINANCIAL STATEMENTS .............................................................................................. A–1
APPENDIX B SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE .................................. B–1
APPENDIX C PROPOSED FORMS OF OPINIONS OF BOND COUNSEL ............................................ C–1
APPENDIX D INFORMATION CONCERNING DTC .............................................................................. D–1
APPENDIX E FORM OF CONTINUING DISCLOSURE AGREEMENTS .............................................. E–1
Resolution No. 2022-10
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OFFICIAL STATEMENT
$52,070,000
CITY OF VERNON
ELECTRIC SYSTEM REVENUE BONDS, 2022 SERIES A
INTRODUCTION
This Introduction is qualified in its entirety by reference to the more detailed information that is
included and referred to elsewhere in this Official Statement. The offering of the 2022 Bonds to potential
investors is made only by means of the entire Official Statement. All capitalized terms used in this Official
Statement and not otherwise defined herein have the meanings set forth in the Indenture. See Appendix B.
Purpose of Official Statement
The purpose of this Official Statement (which includes the cover page and the appendices attached
hereto) is to provide information concerning the sale and delivery by the City of Vernon, California (the
“City”) of its Electric System Revenue Bonds, 2022 Series A (the “2022 Bonds”).
The 2022 Bonds were sold to the Underwriter pursuant to a forward delivery purchase contract dated
December 7, 2021 (the “Forward Delivery Purchase Contract”), between the City and Goldman Sachs &
Co. LLC, as the underwriter of the 2022 Bonds (the “Underwriter”). This Official Statement is being
provided in connection with the delivery of the 2022 Bonds on or about May 5, 2022 in order to update the
Official Statement dated December 7, 2021, delivered by the City at the time of sale of the 2022 Bonds. See
“FORWARD DELIVERY OF THE 2022 BONDS.”
Authority
The 2022 Bonds are being issued pursuant to Article II of the City’s Charter, the City of Vernon
Municipal Facilities Revenue Bond Law, constituting Article XI of the Vernon City Code (collectively, the
“Bond Law”), and an Indenture of Trust, dated as of September 1, 2008 (the “Master Indenture” and, as
amended and supplemented, the “Indenture”), by and between the City and The Bank of New York Mellon
Trust Company, N.A., as trustee (the “Trustee”), including as supplemented by the Seventh Supplemental
Indenture of Trust, dated as of December 1, 2021 (the “Seventh Supplemental Indenture”).
Use of Proceeds
The 2022 Bonds are being issued to provide funds: (i) to refund and defease all of the City’s
outstanding Electric System Revenue Bonds, 2012 Series A (the “2012A Bonds”), which are currently
outstanding in the aggregate principal amount of $37,640,000, and a portion of the City’s outstanding Electric
System Revenue Bonds, 2012 Taxable Series B (the “2012B Bonds”), which are currently outstanding in the
aggregate principal amount of $35,100,000 of which $23,595,000 are expected to be refunded (which refunded
portion shall be referred to herein as the “Refunded 2012B Bonds” and, together with the 2012A Bonds, shall
be referred to herein as the “Refunded 2012 Bonds”); and (ii) to pay costs of issuance of the 2022 Bonds, all
as more fully described in this Official Statement. See the captions “ESTIMATED SOURCES AND USES
OF FUNDS” and “PLAN OF FINANCE – Refunding of the Refunded 2012 Bonds.”
Security and Sources of Payment
The 2022 Bonds are special obligations of the City. The principal and Redemption Price, if any, of
and interest on the 2022 Bonds are payable by the City solely from the Net Revenues of the City’s Electric
System, amounts in the Light and Power Fund other than the Operating Reserve, and amounts in the Funds,
other than the Rebate Fund, held by the Trustee under the Indenture (as defined in Appendix B, the “Trust
Resolution No. 2022-10
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Estate”) and are secured by a pledge of the Trust Estate. See the caption “SECURITY AND SOURCES OF
PAYMENT—Pledge Effected by the Indenture.”
The issuance of the 2022 Bonds does not directly, indirectly or contingently obligate the City to
levy or pledge any form of taxation or to make any appropriation for their payment. The 2022 Bonds
are not secured by a legal or equitable pledge of, or lien or charge upon, any property of the City or any
of its income or receipts except the Trust Estate pledged therefor pursuant to the Indenture which is
subject to the provisions of the Indenture permitting the application thereof for the purposes and on the
terms and conditions set forth therein. Neither the faith and credit nor the taxing power of the City, the
State of California (the “State”) or any other public agency is pledged to the payment of the principal of,
premium, if any, or interest on the 2022 Bonds. The 2022 Bonds do not constitute a debt, liability or
obligation of the State or any public agency other than the special obligation of the City as provided in
the Indenture.
The City has issued, and there are currently outstanding under the Indenture, $415,475,000 aggregate
principal amount of Electric System Revenue Bonds payable from Net Revenues on a parity with the 2022
Bonds (of which $61,235,000 is expected to be refunded by the 2022 Bonds), consisting of: (a) the Electric
System Revenue Bonds, 2008 Taxable Series A (the “2008A Bonds”), which are currently outstanding in the
aggregate principal amount of $37,850,000; (b) the 2012A Bonds, which are currently outstanding in the
aggregate principal amount of $37,640,000 (all of which is expected to be refunded by the 2022 Bonds);
(c) the 2012B Bonds, which are currently outstanding in the aggregate principal amount of $35,100,000 (of
which $23,595,000 is expected to be refunded by the 2022 Bonds); (d) the Electric System Revenue Bonds,
2015 Taxable Series A (the “2015A Bonds”), which are currently outstanding in the aggregate principal
amount of $111,720,000; (e) the Electric System Revenue Bonds, 2020 Series A (the “2020A Bonds”), which
are currently outstanding in the aggregate principal amount of $19,305,000; and (f) the Electric System
Revenue Bonds, 2021 Series A (the “2021A Bonds”), which are currently outstanding in the aggregate
principal amount of $173,815,000.
The Indenture permits the City to issue Additional Bonds and Refunding Bonds which are payable
from Net Revenues on a parity with the 2022 Bonds on the terms and conditions set forth in the Indenture.
The 2008A Bonds, the 2012B Bonds not refunded with proceeds of the 2022 Bonds, 2015A Bonds, the 2020A
Bonds, the 2021A Bonds, the 2022 Bonds and any such Additional Bonds and Refunding Bonds issued under
the Indenture are referred to as the “Bonds.” All Bonds are equally and ratably secured by the pledge of the
Trust Estate under the Indenture. See the captions “SECURITY AND SOURCES OF PAYMENT—
Outstanding Electric System Obligations” and “SECURITY AND SOURCES OF PAYMENT—Additional
Parity Obligations.”
Debt Service Reserve Fund
Pursuant to the Indenture, the Debt Service Reserve Fund is required to be maintained in an amount
equal to the Debt Service Reserve Requirement. Amounts on deposit in the Debt Service Reserve Fund will be
applied to make up any deficiency in any account of the Debt Service Fund for the payment when due of
principal or Redemption Price of or interest on Bonds, including the 2022 Bonds. In connection with the
issuance of the 2022 Bonds, a portion of the amount on deposit in the Debt Service Reserve Fund is expected
to be released and applied to the redemption of the Refunded 2012 Bonds. See the caption “ESTIMATED
SOURCES AND USES OF FUNDS.”
In lieu of the required deposits and transfers of money to the Debt Service Reserve Fund, the City may
cause to be deposited in the Debt Service Reserve Fund a Reserve Financial Guaranty. Pursuant to the Fifth
Supplemental Indenture, dated as of March 1, 2020 (the “Fifth Supplemental Indenture”), by and between
the City and the Trustee, at such time as the 2008A Bonds, the 2012A Bonds, the 2012B Bonds and the 2015A
Bonds are no longer Outstanding, the definition of “Reserve Financial Guaranty” under the Master Indenture
Resolution No. 2022-10
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will be amended as described under the caption “SECURITY AND SOURCES OF PAYMENT—Debt Service
Reserve Fund.”
Redemption Provisions
The 2022 Bonds are subject to redemption prior to maturity. See the caption “THE 2022 BONDS—
Redemption of the 2022 Bonds.”
Continuing Disclosure
The City will covenant for the benefit of the holders and beneficial owners of the 2022 Bonds,
pursuant to a Continuing Disclosure Agreement with the Trustee, in its capacity as dissemination agent, to
provide to the Municipal Securities Rulemaking Board (the “MSRB”) through its Electronic Municipal Market
Access System (“EMMA”) a copy of the annual audited financial statements of the Electric System, as well as
certain operating and financial data relating to the Electric System, and notices of certain enumerated events.
The first Annual Report will be due by April 1, 2023. See the caption “CONTINUING DISCLOSURE” and
Appendix E.
Other Matters
The summaries of and references to all documents, statutes, reports and other instruments that are
referred to herein do not purport to be complete, comprehensive or definitive, and each such summary and
reference is qualified in its entirety by reference to each document, statute, report or instrument. The
capitalization of any word not conventionally capitalized or otherwise defined herein indicates that such word
is defined in a particular agreement or other document and, as used herein, has the meaning given to it in such
agreement or document.
Attached to this Official Statement as Appendix B are summaries of certain provisions of the
Indenture. Copies of the Indenture are available for inspection at the offices of the Trustee, and copies of the
Indenture will be provided by the Trustee upon request and payment of costs.
PLAN OF FINANCE
General
The 2022 Bonds are being issued to provide funds: (i) to refund and defease all of the outstanding
2012A Bonds and a portion of outstanding 2012B Bonds; and (ii) to pay costs of issuance of the 2022 Bonds,
all as more fully described in this Official Statement.
Refunding of the Refunded 2012 Bonds
General. The City issued the 2012A Bonds, which are currently outstanding in the aggregate
principal amount of $37,640,000, and the 2012B Bonds, which are currently outstanding in the aggregate
principal amount of $35,100,000, pursuant to the Indenture, as supplemented by a Third Supplemental
Indenture of Trust, dated as of January 1, 2012.
The City plans to apply a portion of the proceeds of the 2022 Bonds, together with other available
monies, to refund all of the outstanding 2012A Bonds and a portion of each of the 2012B Bonds maturing on
and after August 1, 2023, constituting the Refunded 2012B Bonds, as shown in the below tables. The
$6,165,000 principal amount of the 2012B Bonds maturing on August 1, 2022 are not being refunded and are
expected to be paid by the City as they become due.
Resolution No. 2022-10
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Refunded 2012A Bonds
Principal Payment Date
(August 1)
Principal
Amount Refunded
CUSIP®†
(924397) Redemption
Date
2030 $ 4,645,000 CL4 August 1, 2022
2033 4,155,000 CM2 August 1, 2022
2041 28,840,000 CN0 August 1, 2022
Refunded 2012B Bonds
Principal
Payment Date
(August 1)
Outstanding
Principal
Amount of
2012B Bonds
CUSIP®†
(924397)
Refunded
Principal
Amount of
2012B Bonds
Redemption
Date
Outstanding
Principal Amount
of 2012B Bonds
After Refunding
2023 $6,565,000 CQ3 $5,395,000 August 1, 2022 $1,170,000
2024 6,990,000 CR1 5,685,000 August 1, 2022 1,305,000
2025 7,440,000 CS9 6,050,000 August 1, 2022 1,390,000
2026 7,940,000 CT7 6,465,000 August 1, 2022 1,475,000
Under an Escrow Agreement, dated as of December 1, 2021 (the “2012 Escrow Agreement”), by and
between the City and the Trustee, as escrow agent, the City will deliver a portion of the proceeds of the 2022
Bonds and certain amounts released from the Debt Service Reserve Fund to the Trustee for deposit in the
escrow fund established under the 2012 Escrow Agreement (the “2012 Escrow Fund”). See the caption
“ESTIMATED SOURCES AND USES OF FUNDS.” Such amount will be held in cash or will be invested in
direct obligations of the Department of Treasury of the United States of America (the “Federal Securities”).
From the moneys and Federal Securities, if any, on deposit in the 2012 Escrow Fund, together with investment
earnings thereon, the Trustee will pay the redemption price of the Refunded 2012 Bonds on August 1, 2022
(the “Redemption Date”), at a redemption price equal to the principal amount to be redeemed, without
premium, plus accrued, unpaid interest to the Redemption Date.
As a result of the deposit and application of funds, Federal Securities, if any, and investment earnings
as provided in the 2012 Escrow Agreement, the Refunded 2012 Bonds will be deemed paid and will no longer
be deemed to be Outstanding under the Indenture, as of the date of issuance of the 2022 Bonds.
The amounts held by the Trustee in the 2012 Escrow Fund are pledged solely to the payment of the
Refunded 2012 Bonds. The funds and Federal Securities deposited in the 2012 Escrow Fund and the
investment earnings thereon will not be available for the payments of principal of and interest on the 2022
Bonds.
Verification. Sufficiency of the deposits in the 2012 Escrow Fund for such purposes will be verified
by Causey Demgen & Moore P.C., Denver, Colorado (the “Verification Agent”). Assuming the accuracy of
such computations, as a result of the deposit and application of funds as provided above, as of the date of
F-4
4868-6614-1977v4/022487-0010
F-4
4868-6614-1977v4/022487-0010
† CUSIP numbers have been assigned by an organization unaffiliated with the City. The City is not responsible for the selection
of the CUSIP numbers and makes no representation as to the accuracy thereof as set forth above.
Resolution No. 2022-10
Page 15 of 152
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issuance of the 2022 Bonds, the Refunded 2012 Bonds will be defeased pursuant to the provisions of the
Indenture.
The Verification Agent will also deliver to the City, on or before the delivery date of the 2022 Bonds,
its verification report indicating that it has verified, in accordance with attestation standards established by the
American Institute of Certified Public Accountants, the mathematical accuracy of (a) the mathematical
computations of the adequacy of the cash and the maturing principal of and interest on the Federal Securities,
if any, when deposited into the 2012 Escrow Fund, to pay, when due, the redemption price of the Refunded
2012 Bonds on the Redemption Date and (b) the mathematical computations of yield used by Bond Counsel to
support its opinion that interest on the 2022 Bonds will be excluded from gross income for federal income tax
purposes (assuming and subject to the satisfaction of certain terms and conditions of a Forward Delivery
Purchase Contract for the 2022 Bonds). See “FORWARD DELIVERY OF THE 2022 BONDS.”
The verifications described above to be performed by the Verification Agent will be solely based upon
data, information and documents provided to the Verification Agent by Goldman Sachs & Co. LLC, as the
Underwriter of the 2022 Bonds. The Verification Agent has restricted its procedures to recalculating the
computations provided by Goldman Sachs & Co. LLC and has not evaluated or examined the assumptions or
information used in the computations.
ESTIMATED SOURCES AND USES OF FUNDS
The estimated sources and uses of funds with respect to the 2022 Bonds are set forth below.
Sources(1)
Principal Amount $ 52,070,000.00
Plus Original Issue Premium 10,179,957.10
Debt Service Reserve Fund Release(1)1,156,835.53
Total Sources $ 63,406,792.63
Uses
Deposit to 2022 Escrow Fund $ 62,999,903.13
Costs of Issuance(2) 406,889.50
Total Uses $ 63,406,792.63
(1) Reflects moneys released from the Debt Service Reserve Fund in connection with the refunding of the Refunded 2012
Bonds. See the caption “SECURITY AND SOURCES OF PAYMENT—Debt Service Reserve Fund.”
(2) Includes Underwriter’s discount, legal fees, Trustee fees, Verification Agent fees, rating agency fees, printing costs
and other expenses in connection with the issuance of the 2022 Bonds.
Resolution No. 2022-10
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DEBT SERVICE SCHEDULE
The following table shows the debt service schedule for the City’s Outstanding Bonds, including the
2022 Bonds.
Fiscal
Year
Ended
June 30
Debt Service on
Outstanding
Bonds(1)
2022 Bonds
Total
Debt Service Principal Interest
2022 $ 19,452,807.85(2)$ - $- $ 19,452,806.85
2023 67,783,655.50 - 1,923,697.22 69,707,352.72
2024 62,533,954.00 4,690,000.00 2,486,250.00 69,710,204.00
2025 62,574,662.25 4,885,000.00 2,246,875.00 69,706,537.25
2026 62,576,502.25 5,130,000.00 1,996,500.00 69,703,002.25
2027 57,566,568.75 5,405,000.00 1,733,125.00 64,704,693.75
2028 62,179,089.00 950,000.00 1,574,250.00 64,703,339.00
2029 6,689,854.00 1,000,000.00 1,525,500.00 9,215,354.00
2030 6,692,198.75 1,055,000.00 1,474,125.00 9,221,323.75
2031 6,691,584.75 1,105,000.00 1,420,125.00 9,216,709.75
2032 6,686,813.25 1,160,000.00 1,363,500.00 9,210,313.25
2033 6,691,220.75 1,220,000.00 1,304,000.00 9,215,220.75
2034 6,692,839.25 1,285,000.00 1,241,375.00 9,219,214.25
2035 6,690,040.50 1,350,000.00 1,175,500.00 9,215,540.50
2036 6,690,856.50 1,420,000.00 1,106,250.00 9,217,106.50
2037 6,688,104.50 1,490,000.00 1,033,500.00 9,211,604.50
2038 6,694,262.00 1,565,000.00 957,125.00 9,216,387.00
2039 4,239,591.75 1,650,000.00 876,750.00 6,766,341.75
2040 - 5,295,000.00 703,125.00 5,998,125.00
2041 - 5,565,000.00 431,625.00 5,996,625.00
2042 -5,850,000.00 146,250.00 5,996,250.00
TOTAL(2) $465,814,604.60 $52,070,000.00 $26,719,447.22 $544,604,051.82
(1) Reflects debt service on the 2008A Bonds, the portion of the 2012B Bonds not expected to be redeemed with the proceeds of
the 2022 Bonds, the 2015A Bonds, the 2020A Bonds and the 2021A Bonds. The entire outstanding principal amount of the
2012A Bonds, which are currently outstanding in the aggregate principal amount of $37,640,000, is expected to be redeemed
with a portion of the proceeds of the 2022 Bonds on August 1, 2022, and $23,595,000 of the 2012B Bonds is expected to be
redeemed with a portion of the proceeds of the 2022 Bonds on August 1, 2022.
(2) Reflects debt service payable for the remainder of Fiscal Year 2022 as of December 14, 2021.
THE 2022 BONDS
General
The 2022 Bonds will be issued in the aggregate principal amounts, will bear interest at the rates and
will mature in the years and amounts as set forth on the inside cover pages of this Official Statement. The
2022 Bonds will be issued in denominations of $5,000 or any integral multiple thereof. The 2022 Bonds will
be dated and will bear interest from their date of original issuance. Interest on the 2022 Bonds will be payable
semiannually on each February 1 and August 1, commencing August 1, 2022. Interest on the 2022 Bonds will
be calculated on the basis of a 360-day year consisting of twelve 30-day months. The 2022 Bonds will be
registered in the name of Cede & Co., the nominee of The Depository Trust Company, New York, New York
(“DTC”), and held in DTC’s book-entry system. So long as the 2022 Bonds are held in the book-entry system,
DTC or its nominee will be the registered owner of the 2022 Bonds for all purposes of the Indenture. For
purposes of this Official Statement, DTC or its nominee, and its successors and assigns, are referred to as the
“Securities Depository.” So long as the 2022 Bonds are held in book-entry form through DTC, all payments
with respect to principal of, premium, if any, and interest on each 2022 Bond will be made pursuant to DTC’s
rules and procedures. See Appendix D.
Resolution No. 2022-10
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Redemption Provisions
Optional Redemption of the 2022 Bonds. The 2022 Bonds with stated maturities on or after August 1,
2033, are subject to redemption prior to their respective stated maturities, at the option of the City and from
any source of available funds, as a whole or in part on August 1, 2032, or any date thereafter, and by lot within
each maturity in integral multiples of $5,000, at a Redemption Price equal to the principal amount thereof plus
accrued interest thereon to the redemption date, without premium.
Notice of Redemption. The Trustee is to give notice of the redemption of any 2022 Bonds by first
class mail, postage prepaid, not more than 60 nor less than 30 days before the redemption date to the Owners
of any 2022 Bonds to be redeemed (in whole or in part) at their addresses appearing in the Bond Register.
Such notice will specify the maturity date of the 2022 Bonds to be redeemed, the redemption date and the
place or places where amounts due upon such redemption will be payable and, if less than all of the 2022
Bonds of any like maturity are to be redeemed, the letters and numbers or other distinguishing marks of such
2022 Bonds to be redeemed, and, in the case of a 2022 Bond to be redeemed in part only, such notice will also
specify the respective portion of the principal amount thereof to be redeemed.
In the event that funds required to pay the Redemption Price of 2022 Bonds to be redeemed at the
option of the City are not on deposit with the Trustee at the time the notice of redemption of such 2022 Bonds
is given, such notice will state that such redemption is conditioned upon the receipt by the Trustee, on or prior
to the date fixed for such redemption, of moneys sufficient to pay the Redemption Price of the 2022 Bonds to
be redeemed, and that if such moneys have not been so received, said notice will be of no force and effect and
the City will not be required to redeem such 2022 Bonds. In the event that a notice of redemption of 2022
Bonds contains such a condition and such moneys are not so received, the redemption of 2022 Bonds as
described in the conditional notice of redemption will not be made and the Trustee, within a reasonable time
after the date on which such redemption was to occur, is to give notice to the persons and in the manner in
which the notice of redemption was given that such moneys were not so received and that there will be no
redemption of 2022 Bonds pursuant to the conditional notice of redemption.
Receipt of notice of redemption is not a condition precedent to the redemption of 2022 Bonds and
failure of any Owner of a 2022 Bond to receive any such notice or any insubstantial defect in such notice does
not affect the validity of the proceedings for the redemption of 2022 Bonds.
SECURITY AND SOURCES OF PAYMENT
Pledge Effected by the Indenture
The payment of the principal and Redemption Price of and interest on the 2022 Bonds is secured by a
pledge of the Trust Estate under the Indenture. The Trust Estate consists of: (i) the Revenues; (ii) all amounts
on deposit in the Light and Power Fund, including the investments, if any, thereof; and (iii) all amounts on
deposit in the Funds, other than the Rebate Fund, held by the Trustee under the Indenture, including the
investments, if any, thereof. The pledge of the Trust Estate in the Indenture is subject to the provisions of the
Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein.
The 2022 Bonds and all other Bonds issued under the Indenture are equally and ratably secured by the
pledge of the Trust Estate pursuant to the Indenture. The 2022 Bonds and all other Bonds issued under the
Indenture are equally and ratably payable from the Net Revenues, amounts in the Light and Power Fund other
than the Operating Reserve, and amounts held in the Funds, other than the Rebate Fund, held by the Trustee
under the Indenture. The City has and, in the future, may issue or incur other Parity Obligations which are
secured by a pledge of the Trust Estate. The City has issued under the Indenture, and there is currently
outstanding $415,475,000 aggregate principal amount of Electric System Revenue Bonds (of which
$61,235,000 is expected to be refunded by the 2022 Bonds), consisting of the 2008A Bonds, the 2012A Bonds,
the 2012B Bonds, the 2015A Bonds, the 2020A Bonds and the 2021A Bonds. See the caption “THE
Resolution No. 2022-10
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ELECTRIC SYSTEM—Outstanding Electric System Parity Obligations” for more information about
outstanding Parity Obligations.
“Revenues” is defined in the Indenture to include all gross income and revenue received or receivable
by the City from the ownership or operation of the Electric System, including all rates and charges for the
Electric Service and the other services and facilities of the Electric System, all proceeds of insurance covering
business interruption loss relating to the Electric System and all other income and revenue howsoever derived
by the City from the ownership or operation of the Electric System or otherwise arising from the Electric
System, including all net receipts pursuant to Public Finance Contracts entered into in connection with any
Obligations or program of investments relating to the Electric System and all income from the deposit or
investment of any money in the Light and Power Fund, but excluding: (i) proceeds of taxes; (ii) refundable
deposits made to establish credit and advances; (iii) contributions in aid of construction; and (iv) line extension
fees. The proceeds of the utility users’ tax which is described under the caption “—Transfers to General Fund”
do not constitute Revenues and are not pledged to payment of the Bonds.
“Net Revenues” is defined in the Indenture to mean, for any period of time, the Revenues for such
period less Operation and Maintenance Expenses for such period.
“Operation and Maintenance Expenses” is defined in the Indenture to mean the costs paid or
incurred by the City for operating and maintaining the Electric System including, but not limited to: (a) all
costs of electric energy and power generated or purchased by the City for resale, costs of transmission, fuel
supply and water supply in connection with the foregoing; (b) all costs and expenses of management of the
Electric System; (c) all costs and expenses of maintenance and repair, and other expenses necessary or
appropriate in the judgment of the City to maintain and preserve the Electric System in good repair and
working order; (d) all administrative costs of the several departments of the City that are charged directly or
apportioned to the operation or maintenance of the Electric System, such as salaries and wages (including
retirement benefits) of employees, overhead, taxes (if any) and insurance premiums; (e) payments in lieu of
taxes to any public agency other than the City in connection with the Electric System; (f) all costs, expenses
and charges of the City required to be paid by it to comply with the terms of any Issuing Instrument
authorizing the issuance of Parity Obligations, such as compensation, reimbursement and indemnification of
the trustee, remarketing agent, broker-dealer or auction agent or fees and expenses of Independent Certified
Public Accountants, Independent Engineers and other consultants; (g) the fees, expenses and indemnification
of Credit Providers and Reserve Financial Guaranty Providers; (h) all amounts required to be paid by the City
under contracts with joint powers agencies for the purchase of capacity rights in an electric generating station
or electric transmission facilities, transmission capability or any other commodity, right or service in
connection with the Electric System, which contracts require payments to be made by the City thereunder to be
treated as operation and maintenance expenses of the Electric System; (i) all deposits to be made to a rebate
fund established with respect to Parity Obligations to provide for any rebate to the United States required to
maintain the Tax-Exempt status of interest on such Parity Obligations; (j) any cost or expense paid by the City
to comply with requirements of law applicable to the Electric System or the City’s ownership or operation
thereof or in any capacity with respect thereto or any activity in connection therewith, including without
limitation the public benefit uses required by Section 385 of the California Public Utilities Code; and (k) any
other costs or expense which, in accordance with Generally Accepted Accounting Principles, is to be treated as
a cost of operating or maintaining the Electric System; but excluding in all cases depreciation, replacement and
obsolescence charges or reserves therefor, amortization of intangibles, Franchise Payments to the City and
Unrealized Items. Except as provided in clause (d) above, no transfer of Revenues to the City, including
Franchise Payments, will constitute an Operation and Maintenance Expense.
For a description of certain obligations payable as Operation and Maintenance Expenses, see the
caption “THE ELECTRIC SYSTEM–Power Supply Resources.”
Resolution No. 2022-10
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“Operating Reserve” is defined in the Indenture to mean, as of any date of calculation, an amount in
the Light and Power Fund equal to the amount contained in the then current Budget for Operation and
Maintenance Expenses for the four months next succeeding the month in which the date of calculation occurs.
“Obligations” is defined in the Indenture to include: (a) obligations with respect to borrowed money
such as bonds, notes or other evidences of indebtedness, installment purchase payments under any contract and
lease payments under any financing or capital lease (determined to be such in accordance with Generally
Accepted Accounting Principles) which are payable from the Net Revenues and/or amounts in the Light and
Power Fund; (b) obligations to replenish any debt service reserve fund with respect to obligations of the City
described in clause (a); (c) obligations under a Public Finance Contract payable from the Net Revenues and/or
amounts in the Light and Power Fund; and (d) Credit Provider Reimbursement Obligations.
“Public Finance Contract” is defined in the Indenture to mean: (a) any contract providing for
payments based on levels of, or changes in, interest rates, currency exchange rates, stock or other indices;
(b) any contract to exchange cash flows or a series of payments; or (c) any contract to hedge payment,
currency, rate spread or similar exposure, including but not limited to interest, any interest rate swap
agreement, currency swap agreement, forward payment conversion agreement or futures contract, any contract
providing for payments based on levels of, or changes in, interest rates, currency exchange rates, stock or other
indices, any contract to exchange cash flows or a series of payments, or any contract, including, without
limitation, an interest rate floor or cap, or an option, put or call, to hedge payment, currency, rate, spread or
similar exposure, between the City and a counterparty.
“Franchise Payments” is defined in the Indenture to mean the payment in lieu of franchise tax added
to each Electric System customer bill to be paid to the City’s General Fund and any successor or replacement
payment.
For definitions of certain other terms used herein, see Appendix B.
The issuance of the 2022 Bonds does not directly, indirectly or contingently obligate the City to
levy or pledge any form of taxation or to make any appropriation for their payment. The 2022 Bonds
are not secured by a legal or equitable pledge of, or lien or charge upon, any property of the City or any
of its income or receipts except the Trust Estate pledged pursuant to the Indenture which is subject to
the provisions of the Indenture permitting the application thereof for the purposes and on the terms and
conditions set forth therein. Neither the faith and credit nor the taxing power of the City, the State or
any other public agency is pledged to the payment of the principal of, or premium, if any, or interest on,
the 2022 Bonds. The 2022 Bonds do not constitute a debt, liability or obligation of the State or any
public agency other than the special obligation of the City as provided in the Indenture. The members
of the City Council of the City, and the officers and employees of the City, will not be individually liable
on the 2022 Bonds or in respect of any undertakings by the City under the Indenture.
Deposit and Application of Revenues
Pursuant to the Indenture, the City is to deposit or cause to be deposited all Revenues into the Light
and Power Fund upon receipt thereof. Without limiting the provisions of the Indenture regarding investment
of certain funds, the City is to apply the Revenues for each Fiscal Year, as received, first to the payment of
Operation and Maintenance Expenses then due and payable, and then to the payment of amounts required to be
paid with respect to Debt Service on, and reserves for, the Bonds and other Parity Obligations. The City may
then apply any remaining Revenues to any lawful purpose in connection with the Electric System, including
the payment of amounts required to be paid with respect to Subordinate Obligations, the payment of Costs of
Capital Improvements and, to the extent permitted by the Indenture, to transfers to the City’s General Fund.
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Payments to Trustee for Bonds
During each Fiscal Year the City will pay the Trustee, from the Net Revenues of such Fiscal Year, the
following amounts at the following times:
(a) on the fourth Business Day prior to each Interest Payment Date for any Outstanding Bonds,
an amount equal to the interest payable on the Outstanding Bonds on such Interest Payment Date; provided,
however, that such payments will be reduced by any available amounts on deposit in the Interest Account
which are to be applied to such upcoming interest payment;
(b) on the fourth Business Day prior to each date on which the principal of Outstanding Bonds
which are Serial Obligations mature, an amount equal to the principal of such Outstanding Bonds maturing on
such date; provided, however, that such payments will be reduced by any available amounts on deposit in the
Principal Account which are to be applied to the upcoming principal payment;
(c) on the fourth Business Day prior to each Sinking Fund Installment due date for Outstanding
Bonds which are Term Obligations, an amount equal to the Sinking Fund Installments due with respect to all
Outstanding Bonds which are Term Obligations on such Sinking Fund Installment due date; provided,
however, that such payments will be reduced by any available amounts on deposit in the Sinking Fund
Account which are to be applied to the redemption or payment of such Bonds on such Sinking Fund
Installment due date and by the amount by which the City’s obligations to make payments with respect to such
Sinking Fund Installments have been satisfied pursuant to the Indenture;
(d) at least one Business Day prior to each date fixed for the redemption of Outstanding Bonds
(other than from Sinking Fund Installments and other than an optional redemption of Bonds as to which a
conditional notice of redemption has been sent to the Owners pursuant to the Indenture), an amount equal to
the Redemption Price of the Bonds to be redeemed;
(e) on the date on which the principal of or interest on any Outstanding Bond becomes due and
payable, other than as provided in clauses (a) through (d) above, the City will pay an amount in funds which
are immediately available to the Trustee by 10:00 a.m. (Pacific Time) on the due date, equal to the principal of
and interest on the Outstanding Bonds due on such date;
(f) in the event that on any date upon which the City is to make a payment pursuant to clauses
(a), (b), (c), (d), and/or (e) above and the amount of Net Revenues and the amount in the Light and Power Fund
available therefor in accordance with the Indenture is not sufficient to make such payment and any payment
required to be made on such date with respect to the principal and redemption premium of and interest on other
Parity Obligations (including, with respect to transactions under Qualified Swap Agreements, the Net
Payments due), then the City will apply the Net Revenues and amounts in the Light and Power Fund available
therefor in accordance with the Indenture to the payments required by clauses (a), (b), (c), (d), and/or (e) above
and such payments with respect to the other Parity Obligations ratably (based on the respective amounts to be
paid), without any discrimination or preferences;
(g) on the Business Day preceding each July 1, the City will pay an amount for deposit in the
Debt Service Reserve Fund, such that, after the deposit, the amount on deposit in such Fund is at least equal to
the Debt Service Reserve Requirement, including the amount of any Reserve Financial Guaranties on deposit
in the Debt Service Reserve Fund; and
(h) in the event that on any date upon which the City is to make a payment pursuant to clause (g)
above and the amount of Net Revenues and the amount in the Light and Power Fund available therefor in
accordance with the Indenture is not sufficient to make such payment and any payment required to be made on
such date with respect debt service reserves for other Parity Obligations, then the City, after making the
payments required by clauses (a), (b), (c), (d), (e), and (f) above, will apply the Net Revenues and amounts in
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the Light and Power Fund available therefor in accordance with the Indenture to the payments required by
paragraph (g) above and such payments with respect to debt service reserves for Parity Obligations ratably
(based on the respective amounts to be paid), without any discrimination or preferences.
In the event that on any date all payments required to be made pursuant to the preceding paragraphs
are not made in full from Net Revenues, then the City will make up any deficiency from amounts in the Light
and Power Fund after setting aside in the Light and Power Fund an amount equal to the Operating Reserve. In
the event that on any date all payments required to be made pursuant to the preceding clauses (a) through (h)
are not made in full, then no payment will be made which has a priority lower than the delinquent payment
until all delinquent payments with a higher priority have been made in full.
Rate Covenant
Pursuant to the Indenture, the City has covenanted, at all times, to fix, prescribe and collect rates and
charges for the Electric Service of the Electric System during each Fiscal Year which will be at least sufficient
to yield: (a) Adjusted Revenues for such Fiscal Year at least equal to the sum of the following for such Fiscal
Year: (i) Operation and Maintenance Expenses; (ii) Adjusted Debt Service; and (iii) all other payments
required to be paid in such Fiscal Year to meet any other obligations of the City which are charges, liens or
encumbrances upon or payable from the Revenues (including Net Revenues), including all amounts owed to a
Credit Provider under the terms of its Credit Support Agreement and amounts owed to a Reserve Financial
Guaranty Provider under the terms of its Reserve Financial Guaranty; and (b) Adjusted Revenues less
Operation and Maintenance Expenses for such Fiscal Year equal to at least 110% of Adjusted Debt Service for
such Fiscal Year.
The City may make adjustments from time to time in such fees and charges and may make such
classification thereof as it deems necessary, but will not reduce the rates and charges then in effect unless the
Adjusted Revenues and the Adjusted Net Revenues from such reduced rates and charges will at all times be
sufficient to meet the foregoing requirements.
“Adjusted Revenues” is defined in the Indenture to mean, for any period of time, the Revenues for
such period less the amount of such Revenues which have been deposited in the Expense Stabilization Fund
during such period plus the amount of withdrawals during such period from the Expense Stabilization Fund.
“Adjusted Debt Service” is defined in the Indenture to mean, for any period of time, the Debt Service
with respect to Outstanding Parity Obligations for such period minus the sum of the amount of such Debt
Service to be paid during such period from the proceeds of Parity Obligations or Subordinate Obligations as
set forth in a certificate of the City.
Debt Service Reserve Fund
The Debt Service Reserve Fund is required to be maintained in an amount equal to the Debt Service
Reserve Requirement. Amounts in the Debt Service Reserve Fund are to be used to pay principal and
Redemption Price of and interest on the Bonds then due and payable in the event of any insufficiency in the
amount on deposit in the Debt Service Fund available for such payment.
“Debt Service Reserve Requirement” means, as of any date of calculation, an amount equal to the
least of: (a) 10% of the initial offering price to the public of the Bonds as determined under the Code; or (b) the
greatest amount of Debt Service on the Outstanding Bonds in any Fiscal Year during the period commencing
with the Fiscal Year in which the determination is being made and terminating with the last Fiscal Year in
which any Outstanding Bond is due; or (c) 125% of the sum of the Debt Service for all Fiscal Years during the
period commencing with the Fiscal Year in which such calculation is made (or if appropriate, the first full
Fiscal Year following the issuance of any Bonds) and terminating with the last Fiscal Year in which any Debt
Service on an Outstanding Bond is due, divided by the number of such Fiscal Years, all as computed and
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determined by the City and specified in writing to the Trustee; provided, however that in determining Debt
Service with respect to any Bonds that constitute Variable Rate Bonds, the interest rate on such Bonds for any
period as to which such interest rate has not been established will be assumed to be: (i) with respect to Bonds
which are Tax-Exempt, the ten year historical average of the SIFMA Index ending with the week preceding the
date of calculation; and (ii) with respect to Bonds which are not Tax-Exempt, the ten year historical average of
the One Month USD LIBOR Rate ending with the month preceding the date the calculation is made or if the
One Month USD LIBOR Rate is not available for such period, another similar rate or index selected by the
City. Upon the issuance of the 2022 Bonds and the refunding of the Refunded 2012 Bonds, the Debt Service
Reserve Requirement will be $32,821,953.
Pursuant to the Indenture, in lieu of the required deposits and transfers of money to the Debt Service
Reserve Fund, the City may cause to be deposited in the Debt Service Reserve Fund a Reserve Financial
Guaranty or Guaranties in an amount equal to the difference between the Debt Service Reserve Requirement
and the sums, if any, then on deposit in the Debt Service Reserve Fund or being deposited in such fund
concurrently with such Reserve Financial Guaranty or Guaranties. There is currently no such Reserve
Financial Guaranty in the Debt Service Reserve Fund.
“Reserve Financial Guaranty” is defined in the Indenture to mean a policy of municipal bond
insurance or surety bond issued by a municipal bond insurer or a letter of credit issued by a bank or other
institution if the obligations insured by such insurer or issued by such bank or other institution, as the case may
be, have ratings at the time of issuance of such policy or surety bond or letter of credit in the highest rating
category (without regard to qualifiers) by S&P and Moody’s and, if rated by A.M. Best & Company, also in
the highest rating category (without regard to qualifiers) by A.M. Best & Company.
Pursuant to the Fifth Supplemental Indenture, the definition of “Reserve Financial Guaranty” set forth
above will be amended and restated as set forth below at such time as all of the 2008A Bonds, the 2012A
Bonds, the 2012B Bonds and the 2015A Bonds are no longer Outstanding:
“Reserve Financial Guaranty” means a policy of municipal bond insurance or surety bond
issued by a municipal bond insurer or a letter of credit issued by a bank or other institution if
the obligations insured by such insurer or issued by such bank or other institution, as the case
may be, have ratings from the rating agencies then rating the Bonds at the time of issuance of
such policy or surety bond or letter of credit in the same rating category (without regard to
qualifiers) as the Bonds which are supported by such Reserve Financial Guaranty.”
Expense Stabilization Fund
Moneys may be deposited in the Expense Stabilization Fund held by the Trustee in such amounts, at
such times and from such sources as determined by the City in its sole discretion. Moneys on deposit in the
Expense Stabilization Fund may be withdrawn by the City at any time that no Event of Default exists under the
Indenture and applied to any lawful purpose in connection with the Electric System, including without
limitation, payment of Operation and Maintenance Expenses, payment of Debt Service on the Bonds or other
Parity Obligations, payment of principal or premium or interest on Subordinate Obligations, payment of costs
of Capital Improvements or payment of the costs of issuance of Parity Obligations or Subordinate Obligations.
For any period of time, any amounts so withdrawn from the Expense Stabilization Fund are included in the
calculation of Adjusted Revenues for such period of time. See the caption “—Rate Covenant.” If an Event of
Default under the Indenture has occurred and is continuing, the Trustee will transfer all moneys in the Expense
Stabilization Fund to the Interest Account and the Principal Account of the Debt Service Fund as provided in
the Indenture. On November 18, 2021, the City transferred $25,000,000 from the Light and Power Fund to the
Expense Stabilization Fund and, as of April 1, 2022, there was approximately $38,922,063 on deposit in the
Expense Stabilization Fund.
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Outstanding Electric System Obligations
Upon the issuance of the 2022 Bonds and the refunding of the Refunded 2012 Bonds, the 2008A
Bonds, the 2012B Bonds not refunded by the 2022 Bonds, the 2015A Bonds, the 2020A Bonds, the 2021A
Bonds and the 2022 Bonds will be the only Parity Obligations of the City payable from the Electric System
Net Revenues or amounts in the Light and Power Fund. For a description of other obligations of the City
payable from Electric System Revenues, including certain “take-or-pay” obligations payable as Operation and
Maintenance Expenses, see the caption “THE ELECTRIC SYSTEM—Power Supply Resources.”
Additional Parity Obligations
The City has covenanted pursuant to the Indenture that it will not issue any bond, note or other
evidence of indebtedness payable from or secured by the Trust Estate or any part thereof on a basis which is:
(i) in any manner prior or superior to the lien on, pledge of and security interest in the Trust Estate securing the
Outstanding Bonds pursuant to the Indenture; or (ii) except for other Parity Obligations with respect to the
Revenues and/or amounts in the Light and Power Fund, in any manner on a parity with the lien on, pledge of
and security interest in the Revenues and amounts in the Light and Power Fund securing the Outstanding
Bonds pursuant to the Indenture. Nothing in the Indenture prevents the City from issuing Subordinate
Obligations.
Pursuant to the Indenture, the City may, at any time and from time to time, issue Additional Parity
Obligations, provided that the City obtains or provides either:
(a) a certificate or certificates, prepared by the City or at the City’s option by an Independent
Engineer, showing: (i) that the Adjusted Net Revenues for any 12 consecutive month period within the 18
consecutive months ending immediately prior to the issuance of such Additional Parity Obligations selected by
the City in its sole discretion (the “Calculation Period”), amounts to at least 1.25 times the Maximum
Adjusted Annual Debt Service on all Parity Obligations to be Outstanding immediately after the issuance of
the proposed Additional Parity Obligations; and (ii) that the Net Revenues for such applicable Calculation
Period amount to at least 1.00 times the Maximum Adjusted Annual Debt Service on all Parity Obligations to
be Outstanding immediately after the issuance of the proposed Additional Parity Obligations; or
(b) a certificate or certificates, prepared by the City or at the City’s option by an Independent
Engineer, showing: (i) that the projected Adjusted Net Revenues during each of the five complete Fiscal Years
beginning with the first Fiscal Year following the issuance of such Parity Obligations in which interest thereon
is not capitalized, in whole or in part, amount to at least 1.25 times the Maximum Adjusted Annual Debt
Service on all Parity Obligations to be Outstanding during such Fiscal Years; and (ii) that the projected Net
Revenues during each of the five complete Fiscal Years beginning with the first Fiscal Year following the
issuance of such Parity Obligations in which interest thereon is not capitalized, in whole or in part, amount to
at least 1.00 times the Maximum Adjusted Annual Debt Service on all Parity Obligations to be Outstanding
during such Fiscal Years.
For purposes of preparing such certificate or certificates, the City and any Independent Engineer will
utilize and rely on financial statements prepared by the City which have been audited by an Independent
Certified Public Accountant but may utilize and rely upon the books and records of the City or any unaudited
financial statements prepared by the City if audited financial statements for the particular Calculation Period
selected by the City are not available.
Notwithstanding the foregoing (and without satisfying the revenue tests above), the City may at any
time but subject to the applicable requirements of the Indenture: (i) issue or enter into an obligation or
commitment which is a Qualified Swap Agreement; (ii) issue Refunding Parity Obligations, provided that the
Aggregate Adjusted Annual Debt Service for all Parity Obligations to be Outstanding after the issuance of
such Refunding Parity Obligations will not exceed the Aggregate Adjusted Annual Debt Service for all Parity
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Obligations Outstanding immediately prior to the issuance of such Refunding Parity Obligations in each Fiscal
Year from the date of issuance of such Refunding Parity Obligations to the last Fiscal Year in which any Parity
Obligations Outstanding immediately prior to and subsequent to the issuance of such Refunding Parity
Obligations are scheduled to remain Outstanding; and (iii) enter into Credit Support Instruments or otherwise
become obligated for Credit Provider Reimbursement Obligations with respect to Parity Obligations.
See Appendix B for the definition of certain terms used above.
Transfers to General Fund
As shown in the table below, in addition to its portion of the allocated administrative costs of the City
payable from the Light & Power Fund as Operation and Maintenance Expenses, the City has historically
transferred Net Revenues remaining after the payment of debt service on Bonds from the Light and Power
Fund to the City’s General Fund in order to cover certain other services provided by the General Fund for the
benefit of the Electric System. The City has covenanted in the Indenture not to transfer Net Revenues for any
Fiscal Year to the City’s General Fund, including the Franchise Payment, in an amount exceeding the Net
Transferable Income for such Fiscal Year, which amount will be determined at the end of such Fiscal Year;
provided that so long as an Event of Default has occurred and is continuing under the Indenture, the City may
not transfer any Net Transferable Income to the City’s General Fund.
“Net Transferable Income” means, with respect to any Fiscal Year, the Net Revenues for such Fiscal
Year less the Debt Service for such Fiscal Year; provided that, the Net Transferable Income for any Fiscal
Year may not exceed the difference between: (i) 11.5% of the retail sales for such Fiscal Year; and (ii) the sum
of: (A) the amount paid pursuant to clause (d) of the definition of Operation and Maintenance Expenses in
such Fiscal Year; plus (B) the amount, if any, paid to the City as a Franchise Payment in such Fiscal Year.
In 2018, City voters approved a utility users’ tax (the “UUT”), including a 6% tax on industrial and
commercial users of electric services which was phased in over a period from Fiscal Year 2019 through Fiscal
Year 2021 and will terminate in Fiscal Year 2027. The City expects that the collection of the UUT will enable
the City to reduce transfers from the Electric System to the General Fund during the period while the UUT is
collected, as UUT proceeds will support General Fund activities that have historically been funded from
Electric System transfers. The Electric System will continue to make Franchise Payments to the General Fund
while the UUT is being collected. See the caption “—Pledge Effected by the Indenture.”
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The following table shows the amount of transfers from the Light and Power Fund to the City’s
General Fund for the last five Fiscal Years and the amount projected for the current Fiscal Year.
CITY OF VERNON ELECTRIC SYSTEM
Transfers to General Fund
Fiscal Year Ended
June 30
Amount of
Transfer(1)
2017 $13,121,515
2018(2)14,344,504
2019(3)4,239,557
2020(3)4,582,784
2021(3) 4,781,720
2022(3) (4)5,093,787
(1) Includes Franchise Payments; does not include City-allocated administrative expenses constituting Operation and
Maintenance Expenses. See the limitation regarding Net Transferable Income above.
(2) The Electric System received a transfer in from the Successor Agency to the City of Vernon Redevelopment Agency
in the amount of $22,595,532 in Fiscal Year 2018 (reflecting redevelopment bond proceeds that the City elected to
apply to Electric System capital projects), resulting in a net transfer in to the Light and Power Fund of $8,251,028.
(3) Reflects Franchise Payments only. Reduction beginning in Fiscal Year 2019 reflects approval of UUT.
(4) Projected. Subject to change.
Source: City of Vernon.
See the caption “CONSTITUTIONAL LIMITATIONS ON TAXES AND FEES—Articles XIIIC and
XIIID of the State Constitution” for a discussion of certain limitations on and case decisions relating to
transfers from municipal electric utility funds to general funds. The City sets its rates and its budget with the
expectation that certain transfers will be made from the Electric System to the City’s General Fund in
accordance with the restrictions set forth in the Indenture. In the event that transfers are further restricted, the
City does not believe that any such further restrictions would have a material adverse effect on the financial
position of the Electric System. However, such further restrictions on transfers may cause the City to evaluate
new strategies to generate revenues to fund services provided by the City.
Limitations on Remedies
The rights of the Owners of the 2022 Bonds are subject to the limitations on legal remedies against
cities in the State. Additionally, enforceability of the rights and remedies of the Owners of the 2022 Bonds,
and the obligations incurred by the City, may become subject to the following: the United States Bankruptcy
Code and applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or
affecting the enforcement of creditors’ rights generally, now or later in effect; equity principles which may
limit the specific enforcement under State law of certain remedies; the exercise by the United States of
America of the powers delegated to it by the Constitution; and the reasonable and necessary exercise, in
appropriate situations, of the police powers inherent in the sovereignty of the State and its governmental bodies
in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise
of powers by the federal or State government, if initiated, could subject the Owners of the 2022 Bonds to
judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail
risks of delay, limitation, or modification of their rights.
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GENERAL INFORMATION REGARDING
THE CITY AND THE SERVICE AREA
General
The City was incorporated in 1905 under the general laws of the State. City voters approved a charter
in 1988 and the City thereafter became a charter city. The City has a land area of approximately 5.2 square
miles and an estimated population of 295 people as of January 1, 2021. Land use in the City primarily consists
of industrial development, with small areas devoted to commercial and residential uses. The City provides a
wide range of services, such as public utilities (including water, gas, fiber and electric services), police
protection and public works. The City contracts with the County of Los Angeles Fire Department for its fire
services.
The City is located in the County of Los Angeles (the “County”), approximately 5 miles south of
downtown Los Angeles. The City has extensive rail lines running through it, as well as two large intermodal
freight yards at the City northern boundaries, to serve its industrial customer base. It is also located along
Interstate 710 and is in close proximity to Interstates 5, 10, 105 and 110. With its location along or near these
freeways, its close proximity to the Ports of Los Angeles and Long Beach and the Los Angeles International
Airport, and the rail lines within the City, the City has access to a significant transportation network. The City
has diversified from its origins as a hub for livestock businesses. There are currently over 1,600 industrial
firms employing approximately 37,000 people within the City.
The City established its Electric System in 1933. The City operates the Electric System through its
public utilities department (known as Vernon Public Utilities). The Electric System provides service to the
entire 5.2 square mile geographic area of the City. The service area is largely built out and primarily
encompasses industrial and commercial businesses, with small areas of residential use. In Fiscal Year 2021,
industrial and commercial customers purchased approximately 99% of the electricity supplied by the City.
Because the Electric System’s customer base is primarily industrial and commercial, electricity demand is not
dependent on population growth but is closely tied to regional, national and international economic conditions.
As of June 30, 2021, the City provides electric service to approximately 1,238 small industrial, 503
large industrial and 164 commercial, residential and other customers. The City’s Electric System is comprised
of generation, transmission, and distribution facilities and includes approximately 4,318 poles, 8 electric
substations, a combined cycle natural gas fired generating plant and its peak load of approximately 191
megawatts (“MWs”) occurred in 2021.
Governance and Management
City Council. The City is governed by a five-member City Council, the members of which are elected
at large for staggered four year terms. Council members select a Mayor and Mayor Pro Tem from among the
City Council. The current Mayor and City Council members and the expiration dates of their terms are set
forth below.
CITY OF VERNON
Mayor and City Council Members
Name and Title Expiration of Term
Melissa Ybarra, Mayor April 2022
William “Bill” Davis, Mayor Pro Tem April 2023
Crystal Larios, Council Member April 2024
Leticia Lopez, Council Member April 2026
Judith Merlo, Council Member April 2025
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Management. The City Administrator, who is appointed by the City Council, serves as the City’s
chief executive officer and is responsible for overseeing the daily operations of City departments. The City
Administrator serves as an advisor to the City Council on policy matters, supports the informational and
policymaking needs of the City Council, implements City Council decisions, and prepares, manages and
implements the City’s annual budgets and capital improvement program.
Carlos R. Fandino, Jr. has served as the City Administrator since 2016. Mr. Fandino previously
worked for the City’s Gas and Electric Department (now known as Vernon Public Utilities), where he
managed the operations of the power plant and the distribution system for nearly 15 years. Mr. Fandino has
served in a variety of capacities within such Department, including as General Manager. He previously served
in the United States Marine Corps and is a Desert Storm/Desert Shield combat veteran. He obtained a
Bachelor’s degree in Business & Management from Woodbury University in Burbank, graduating magna cum
laude.
Other key personnel responsible for management of the Electric System include the Director of
Finance/Treasurer and the General Manager of Public Utilities.
Scott Williams is the Director of Finance/Treasurer of the City. Mr. Williams has been with the City
since 2019 and has over 20 years of financial management experience. Prior to coming to the City,
Mr. Williams served as the Finance Director and Administrative Services Officer for the City of Signal Hill,
California, and in various financial management positions in both the public and private sector. Mr. Williams
obtained a Bachelor’s degree in Business Administration from The Master’s University, an MBA from
California State University, Monterey Bay, and a Doctorate in Public Administration from California Baptist
University in Riverside, California. Mr. Williams is a member of the California Society of Municipal Finance
Officers, the California Municipal Treasurers Association, the Association of Certified Fraud Examiners and
the Institute of Management Accountants.
Abraham Alemu is the General Manager of Public Utilities of the City. Mr. Alemu has been with the
City since 1992, where for more than a dozen years he managed the Power Integrated/Resource team.
Mr. Alemu obtained a Bachelor’s degree in Electrical Engineering from California State University, Los
Angeles, and a Masters in Business Administration from Woodbury University. Mr. Alemu is a Registered
Professional Engineer in California and a member of the Institute of Electrical and Electronics Engineers.
The City Council also appoints a City Attorney who is responsible for advising the City Council on
legal issues affecting the City.
Zaynah Moussa is the Interim City Attorney of the City, Ms. Moussa joined the Vernon City
Attorney’s Office in 2013 as part of the City’s broad implementation of good governance measures and has
practiced municipal law since 2009. Ms. Moussa obtained her Juris Doctor degree from Loyola Law School
and a Bachelor’s degree in Political Science and Journalism from the University of Southern California,
graduating cum laude.
Business and Industry Commission. In July 2014, the City established the Vernon Business and
Industry Commission to advise, assist and make recommendations to the City regarding ways to make the City
more attractive to employees, businesses and investors while appropriately considering the needs and concerns
of the residential communities within and in close proximity to the City. The Business and Industry
Commission represents the consolidation of two previously existing Ad Hoc Advisory Committees created and
appointed by the City Council, one on Electric Rates and the other on Business Development. The
Commission is comprised of seven members from the following categories who are appointed by the City
Council: three City business representatives, two City real estate representatives, one employee of a business
located in the City or who is a member of a labor union that represents workers at a business located in the
City and one current City Council Member. The Business and Industry Commission meets quarterly to
provide input and make recommendations to the City on a number of matters relating to or impacting business
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and industrial development with the City, including electric rate adjustments. The input and recommendations
provided by the Business and Industry Commission are not binding on the City.
Budget Process
The City prepares and adopts a budget on a modified accrual basis for each Fiscal Year which
includes proposed expenditures and the means of financing such expenditures. Under the City’s budget
procedure, the City Administrator submits a proposed budget to the City Council for the Fiscal Year
commencing the following July 1. Prior to June 30 of each year, a public hearing is held and public notice is
disseminated to obtain public comments and the budget is legally enacted by the City Council through the
passage of a resolution. The City Council adopted the Fiscal Year 2022 budget on June 1, 2021.
Employees
As of April 1 2022, the City had approximately 208 full-time equivalent employees, of whom
approximately 61 worked solely on behalf of the Electric System. These employees included 19 employees
which are primarily employed with respect to the Malburg Generating Station (the “MGS”).
Certain employees of Vernon Public Utilities are represented by the International Brotherhood of
Electrical Workers Local 47 (the “IBEW”) and the Teamsters Local 911 (the “Teamsters”). Relations
between the City and the IBEW are governed by a Memorandum of Understanding which expires on June 30,
2022 and relations between the City and the Teamsters are governed by a Memorandum of Understanding
which expires on June 30, 2022. Certain management, supervisory and professional employees are
unrepresented. The City has never experienced a strike, slowdown or work stoppage.
The City provides certain pension and post-employment healthcare benefits for employees. For a
discussion of the City’s long-term obligations associated with these plans, see the caption “FINANCIAL
INFORMATION—Employee Benefit Obligations.”
City Insurance
The City maintains liability insurance coverage for amounts up to $20,000,000, with a $2,000,000
self-insured retention.
The City is self-insured for workers’ compensation liabilities for amounts up to $1,500,000 per
occurrence and maintains excess coverage of $50,000,000.
The City maintains property insurance coverage for amounts up to $100,000,000, with a deductible of
$25,000 for property damage and $250,000 for Power Generation Substations and Power Plant. Certain
Electric System components, including poles and transmission lines, are not covered by property insurance.
The City does not carry earthquake coverage. See the captions “THE ELECTRIC SYSTEM—Seismic
Activity and Other Natural Disasters.”
The City maintains directors and officers and employee dishonesty insurance coverage for amounts up
to $1,000,000, with a $25,000 deductible.
The City maintains pollution insurance coverage for amounts up to $5,000,000, with deductibles of
$25,000 for non-utility locations, divested locations and scheduled storage tanks, $50,000 for utility locations
and $100,000 for natural gas pipeline.
The City has not settled any claims that exceeded its insurance coverages in the past three years.
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In addition, with respect to the MGS, the City maintains property and boiler & machinery insurance
coverage for the amount up to $200,000,000 with a various deductible from $100,000 to $1,000,000, excess
liability insurance coverage for the amount up to $100,000,000 with a $1,000,000 deductible and earthquake
insurance coverage for the amount up to $50,000,000 with a $250,000 deductible.
The City can provide no assurance that it will maintain the above insurance coverage amounts while
the 2022 Bonds are outstanding. See Appendix B under the caption “PARTICULAR COVENANTS—
Insurance” for a description of insurance coverages that are required to be maintained while the 2022 Bonds
are Outstanding.
Cybersecurity
The City relies on computers and technology to conduct its operations. The City and its departments
face cyber threats from time to time including, but not limited to, hacking, viruses, malware and other forms of
technology attacks. Recently, there have been significant cyber security incidents affecting municipal
agencies, including a freeze affecting computer systems of the City of Atlanta, an attack on the City of
Baltimore’s 911 system, an attack on the Colorado Department of Transportation’s computers and an attack
that resulted in the temporary closure of the Port of Los Angeles’ largest terminal. Cyberattacks are becoming
more sophisticated and certain cyber incidents, such as surveillance, may remain undetected for an extended
period.
The City employs a multi-level cyber protection scheme that includes firewalls, anti-virus software,
anti-spam/malware software, intrusion protection and domain name system filtering software. The City also
contracts with third party vendors to monitor and augment internal monitoring of the City’s computer systems.
Vernon Public Utilities recently performed an Electric System cybersecurity self-assessment, using the
American Public Power Association’s Cybersecurity Scorecard (which is based on a United States Department
of Energy Electricity Subsector Cybersecurity Capability Maturity Model) to assess cyber risk, plan
improvements, prioritize investments and benchmark the Electric System’s security posture. The items
addressed in the scorecard include maintaining an inventory of critical cyber or information technology assets,
monitoring networks and assets for suspicious activities, planning for relocation of information systems,
ensuring relevant employees are trained to respond to incidents, establishing emergency contact information
for cyber specific incidents and planning new preventative measures. The City has also signed mutual
assistance agreements with the California Utilities Emergency Association to send and receive mutual
assistance for cyber security issues should they arise.
In November 2021, the City became aware that an unauthorized person or persons gained access to
the email accounts of five City employees. Since becoming aware of the incident, the City initiated an
investigation and retained a consultant to conduct a forensic evaluation regarding the incident as well as
whether any personal identifiable information had been compromised. As of the date of this Official
Statement, the evaluation is still ongoing. Neither the City nor the Electric System has suffered any material
financial consequences to date as a result of the incident. No assurances can be given that the City’s security
and operational control measures will be successful in guarding against all future cyber threats and attacks.
The results of any attack on the City’s computer and technology could negatively impact the Electric System’s
operations, and the costs related to such attacks could be substantial.
COVID-19
The spread of the novel strain of coronavirus (and variants thereof) and the disease it causes (now
known as “COVID-19”) has had significant negative impacts throughout the world, including in California. In
2020, the World Health Organization declared the COVID-19 outbreak to be a pandemic, and states of
emergency have been declared by the United States, the State and numerous counties throughout the State,
including in the County. The purpose behind these declarations was to coordinate and formalize emergency
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actions across federal, state and local governmental agencies, and to proactively prepare for a wider spread of
the virus.
On March 19, 2020, in an effort to slow the spread of COVID-19, Governor Newsom issued
Executive Order N-33-20 ordering individuals living in the State to stay home or at their place of residence
except for specified exceptions, including exceptions for certain sectors of the workforce that were classified
as providing essential services and products, which allowed businesses and workers in such sectors to continue
to operate on-site operations while Executive Order N-33-20 was effective. On June 11, 2021, Governor
Newsom issued two executive orders, which became effective on June 15, 2021, which had the effect of
rescinding a majority of the COVID-19-related restrictions and providing a timeline for gradually lifting
certain of the other restrictions that were not fully rescinded on June 15, 2021.
A majority of the customers of the City’s Electric System operate businesses that were considered to
provide essential services and products under Executive Order N-33-20 and, as a result, the City experienced a
relatively stable electric load throughout the COVID-19 pandemic. The Electric System’s 20 largest customers
account for approximately 61% of the Electric System’s revenues, and since the start of the COVID-19
pandemic (March 2020), such customers have remained in operation without interruption. For information
regarding the City’s load requirements over the past five Fiscal Years, see the caption “THE ELECTRIC
SYSTEM—Power Supply Resources.” For information regarding the types of businesses comprising the
Electric System’s largest customers, see the caption “THE ELECTRIC SYSTEM—Largest Customers.”
Historically, the annual write-offs for uncollectible accounts have been less than 0.2% of gross
billings of the Electric System. Since the onset of the COVID-19 pandemic, write-offs for uncollectible
accounts has increased to approximately 1% of gross billings for Fiscal Year 2021, which was primarily
attributable to small business customers. To help mitigate the economic impact of COVID-19 and the related
governmental regulations on its customers, the City implemented a payment deferral program for all customers
of the City utilities, which included the suspension of the disconnection of services by City utilities for non-
payment of utility bills for a period beginning in April 2020 and extending through June 2021. When the
deferral program concluded, none of the customers of the Electric System were moved into disconnection
status.
The City has been allocated approximately $1.1 million under the California Department of
Community Services and Development California Arrearage Payment Program (“CAPP”), to aid the accounts
that have fallen behind during the period of May 4, 2020 through June 15, 2021, which in turn is expected by
the City to lower the uncollectible revenue amount as funds are received. As of April 1, 2022, the City has
received $670,915.75 of such funding. See also the caption “THE ELECTRIC SYSTEM—Electric Rates—
Uncollectible Accounts.”
With widespread vaccination currently underway in the United States and many countries worldwide,
governmental-imposed stay-at-home orders and restrictions on operations of schools and businesses
implemented to respond to and control the outbreak have been eased or eliminated. However, restrictions may
be re-imposed in various jurisdictions from time to time as local conditions warrant. The City cannot predict
whether any reinstatement or expansion of stay-at-home orders and travel or other restrictions will occur or
when a full resumption of all economic activity will be achieved. The ultimate impact of COVID-19 on the
operations and finances of the City or the Electric System is unknown and there can be no assurances that
COVID-19 will not materially adversely impact the financial condition of the City or the Electric System in
the future. There are many variables that will continue to contribute to the economic impact of the COVID-19
pandemic and the recovery therefrom, including the effectiveness of State and federal government relief
programs and the timing for containment and treatment, new coronavirus strains, vaccinations efforts and
vaccine hesitancy. The City cannot predict the extent or duration of such impacts.
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THE ELECTRIC SYSTEM
General
The City established its Electric System in 1933 through the acquisition of the existing electric
distribution system within the City and the construction of a diesel generating station at Station A (located at
4990 Seville Avenue, Vernon, California) (“Station A”). The City operates the Electric System through its
public utilities department (known as Vernon Public Utilities), with all revenues of the Electric System being
credited to, and all expenses of the Electric System being payable from, the Light and Power Fund. The
Electric System serves all electric users within the City, which consist primarily of industrial customers.
During Fiscal Year 2021, the Electric System supplied approximately 1,238 small industrial, 503 large
industrial and 164 commercial, residential and other customers with approximately 1,150.5 million kilowatt
hours (“kWhs”) of electric energy and had a peak demand of approximately 191 MWs. See the caption “The
ELECTRIC SYSTEM—Customers, Retail Energy Sales, Revenues and Demand.”
The City’s Electric System is comprised of generation, transmission, and distribution facilities and
includes approximately 4,318 poles, 8 electric substations, a combined cycle natural gas fired generating plant
and a peak load of approximately 191 MWs, which occurred in 2021.
The City’s electricity supply in Fiscal Year 2021 was provided from the following sources: (i) the
MGS, a City-owned combined cycle natural gas fired generating plant (approximately 49%); (ii) the Palo
Verde Nuclear Generating Station (“PVNGS”) (approximately 7.5%) pursuant to a power sales contract (the
“PVNGS Contract”) with the Southern California Public Power Authority (“SCPPA”); (iii) short-term
contracts for a term of less than one year (approximately 26%); (iv) power purchase agreements relating to
four renewable energy projects (approximately 15.5%); and (v) other sources (approximately 2%). See the
captions “—Power Supply Resources” and “—Renewable Energy Resources.”
In order to comply with certain State mandates relating to renewable energy, the City expects that its
supply of electricity from renewable resources will increase in the future. See the captions “—Renewable
Energy Resources,” “—Integrated Resource Plan” and “—Developments Affecting the Power Supply.”
Power Supply Resources
General. The Electric System’s current long-term power supply resources consist of the following:
(1) the MGS; (2) the PVNGS Contract with respect to a portion of SCPPA’s interest in PVNGS; (3) a Contract
for Electric Service (the “CES”) with the United States Department of Energy Western Area Power
Administration (“Western”) with respect to power from the hydroelectric power plant of the Hoover Dam (the
“Hoover Uprating Project”); (4) two 5.75 MW simple cycle gas turbine generating units (collectively, the
“H. Gonzales Generating Station”) at Station A used for reserve purposes; and (5) power purchase
agreements entered into with SCPPA in connection with four renewable energy projects, as described under
the caption “—Renewable Energy Resources.” Prior to the City’s reacquisition of the MGS in December
2021, the City purchased the 100% of the output of the MGS pursuant to the terms of a power purchase tolling
agreement (the “Former PPTA”) with the private entity that owned and operated the MGS.
The MGS resource, the PVNGS Contract, the CES for Hoover, the H. Gonzales Generating Station
and the four renewable energy projects described below are collectively referred to as the “Committed
Resources.” For Fiscal Year 2021, the Committed Resources provided approximately 74% of the energy
supplied by the Electric System to meet customer load. In addition to the Committed Resources, the City
entered into short-term contracts to satisfy the remaining 26% of the load requirements of Electric System
customers in Fiscal Year 2021.
Historically, the City has used energy purchased through short-term contracts rather than energy
purchased from the MGS under the Former PPTA when such energy is available at a lower cost. While the
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City expects to continue utilizing short-term contracts to satisfy load requirements which are not covered by its
Committed Resources as and when necessary, the City may enter into long-term power purchase contracts
(other than the Committed Resources) when the City determines that it is economically advantageous to do so
or in connection with satisfying renewable energy portfolio requirements. See the caption “—Developments
Affecting the Power Supply.”
For Fiscal Year 2022, the City anticipates that the Committed Resources will provide approximately
74% of the energy supplied by the Electric System in such Fiscal Year to meet customer load, while short-term
contracts will provide approximately 26% of the energy supplied by the Electric System in such Fiscal Year.
The power supply resources of the Electric System used to satisfy the load requirements of the
Electric System’s customers for the past five Fiscal Years are described in the following table.
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CITY OF VERNON ELECTRIC SYSTEM
Resources Used to Satisfy City Load Requirements(1)
Fiscal Year Ended June 30
2017 2018 2019 2020 2021
Short-Term Contracts(2)
Actual Energy(3) 197,441 247,788 259,643 208,927 310,671
Percentage of Total Energy 17.38% 21.98% 23.20% 18.38% 25.76%
MGS(4)
Actual Energy(3) 732,594 575,439 575,379 642,697 594,954
Percentage of Total Energy 64.48% 51.04% 51.41% 56.54% 49.33%
PVNGS
Actual Energy(3) 92,924 93,268 90,835 91,524 90,591
Percentage of Total Energy 8.18% 8.27% 8.12% 8.05% 7.51%
Hoover Uprating Project
Actual Energy(3) 20,222 21,114 20,557 19,353 22,113
Percentage of Total Energy 1.78% 1.87% 1.84% 1.70% 1.83%
City-Owned Generation(5)
Actual Energy(3) 1,023 3,390 4,141 1,649 653
Percentage of Total Energy 0.09% 0.30% 0.37% 0.15% 0.05%
Puente Hills Landfill Project
Actual Energy(3) 31,934 57,796 45,820 49,410 44,429
Percentage of Total Energy 2.81% 5.13% 4.09% 4.35% 3.67%
Astoria II
Actual Energy(3) 25,757 61,815 58,863 58,491 61,164
Percentage of Total Energy 2.27% 5.48% 5.26% 5.15% 5.07%
Antelope 1
Actual Energy(3) 34,344 66,860 63,976 64,620 62,819
Percentage of Total Energy 3.02% 5.93% 5.72% 5.69% 5.21%
Desert Harvest/Maverick Solar
Actual Energy(3) -------- 18,877
Percentage of Total Energy -------- 1.57%
City’s Total Load Requirement
Actual Energy(3) 1,136,239 1,127,470 1,119,215 1,136,671 1,206,271
Percentage of Total Energy 100.00% 100.00% 100.00% 100.00% 100.00%
(1) Totals may not add due to rounding.
(2) Contracts for a term of less than one year and spot market purchases.
(3) In megawatt hours (“MWhs”).
(4) Reflects purchase of 100% of the output from the MGS. Prior to the reacquisition of the MGS by the City, the City
purchased 100% of the output from the MGS pursuant to the terms of the Former PPTA. See the caption “—Power Supply
Resources—Malburg Generating Station” below.
(5) Includes resources from the H. Gonzales Generating Station.
Source: City.
The City’s current power supply resources and the obligations of the Electric System in connection
therewith are described below.
Malburg Generating Station.
General. The MGS is a 120 MW base load/134 MW full load combined cycle, natural gas-fired,
electric power plant located within the City. The MGS was originally developed, owned and operated by the
City. The MGS achieved commercial operation in October 2005. In 2008, the City sold the MGS to a private
operator. On December 14, 2021, the City reacquired the MGS.
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Description of Facility. The MGS includes two Siemens (formerly Alstom) GTXI00 natural gas-fired
combustion turbine generators and a steam turbine generator. The MGS includes duct burners and evaporative
inlet air coolers and filters to achieve higher levels of power output in selected modes of operation. The MGS
is connected to the Electric System’s distribution facilities at the Vernon Substation, located at Station A (as
hereinafter defined). Originally developed and constructed by the City, the MGS was designed to provide
approximately 60% of the City’s then-expected requirements for base load electric power.
The MGS has been a base load generation resource for the City since it achieved commercial
operation in October 2005, and continued as such following the initial sale of the MGS, through arrangement
set for the in the Former PPTA. Prior to the reacquisition of the MGS in December 2021, the City purchased
100% of the output of the MGS pursuant to the terms of the Former PPTA. In Fiscal Year 2021, the MGS
provided 594,954 MWhs of energy to the City, comprising approximately 49% of the energy needed to satisfy
the City’s load requirements. The City expects that the MGS will provide approximately 614,191 MWhs of
energy to the City in Fiscal Year 2022, or an estimated 48% of the total needed to satisfy the City’s estimated
load requirements.
Operation of MGS. The MGS is operated and managed by the City. Following the acquisition of the
MGS in December 2021, the City hired 19 employees who were previously employed by management
company that was contracted to operate the MGS by the prior owner to help facilitate the transition in
ownership and operation from the private operator to the City.
Major maintenance, including parts supply, parts repair and labor of the MGS’s two natural gas-fired
combustion turbines and the steam turbine are currently provided pursuant to an Amended and Restated
Services Agreement, dated as of September 30, 2010, as amended (the “Long-Term Services Agreement”),
by and between the former private operator of the MGS and Siemens Energy, Inc. (“Siemens”). The Long-
Term Services Agreement was assumed by the City upon the acquisition of the MGS.
On March 16, 2022, Siemens and the City entered into a change order to the Long-Term Services
Agreement (the “Change Order”) that modified certain terms relating to costs and the scheduled termination
date of the Long-Term Services Agreement. Under the Change Order, the Long-Term Services Agreement is
scheduled to expire with respect to each combustion turbine upon the earlier of (i) the date the applicable
combustion turbine accumulates 59,999 equivalent operating hours from March 2018, (ii) the date the
applicable combustion turbine accumulates 499 equivalent operating cycle from May 2022, or (iii) September
30, 2025.
The City is in the process of evaluating the impact of the terms of the Change Order and, as a result,
has not prepared projections that account for the Long-Term Services Agreement as modified by the Change
Order. The City, however, does not currently expect the Change Order to increase the expenses of the Electric
System. The projected expenses included in this Official Statement reflect the costs, term and scheduled
termination date of the Long-Term Services Agreement prior to being modified by the Change Order.
As part of its responsibilities under the Long-Term Services Agreement, on November 11 and 12,
2021, Siemens performed a borescope inspection of the MGS’s two gas-fired combustion turbines. In a letter
from Siemens to the Seller dated November 15, 2021 (the “Siemens Letter”), Siemens noted that the
inspection detected oxidation to one of the two turbines (“Combustion Turbine 1”). The Siemens Letter
indicated that the deterioration had not exceeded engineering expectations. The Siemens Letter recommended
that a second inspection be performed after Combustion Turbine 1 had operated for an additional 2,000
equivalent operating hours. The inspection was completed on February 6 and 7, 2022. Following the
inspection, Siemens issued a report recommending the continued operation of Combustion Turbine 1 through
May 1, 2022, when a regularly scheduled maintenance outage is scheduled to occur. During such outage,
Siemens will replace the oxidized parts.
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Natural gas for the operation of the turbines is delivered to MGS through a 10-inch lateral connected
to the City’s natural gas utility system. Operation of the MGS can require delivery of up to 21,300 million
British Thermal units (“MMBtus”) of natural gas per day. The City, under the terms of the Former PPTA, had
been supplying the MGS with natural gas primarily through bilateral contracts and spot market purchases, and
the City expects to continue to obtain natural gas for operation of MGS through bilateral contracts and spot
market purchases. See also the caption “THE ELECTRIC SYSTEM—Renewable Energy Resources—Current
Renewable Energy Resources—Contracts for Bio-Gas,” The City continues to monitor the market for natural
gas and may, in the future, enter into additional contracts for the purchase of natural gas for the MGS if the
City determines that the terms of such contracts are beneficial to the City.
In connection with its purchase of natural gas and capacity, transmission, transportation, grid
management and extraordinary expenses related thereto, the City has established the Energy Cost Adjustment
Billing Factor (the “ECABF”) to pass through to Electric System customers increased costs related to fuel.
See the caption “THE ELECTRIC SYSTEM—Electric Rates—Energy Cost Adjustment Billing Factor.”
Reclaimed water is currently delivered to the MGS pursuant to a recycled water agreement with the
Central Basin Municipal Water District (the “CBMWD Agreement”) which was executed on July 15, 2002.
The CBMWD Agreement has a term of 30 years and can be automatically extended by the City for an
additional 10-year term. Recycled water is delivered to the MGS through an 18-inch diameter, 1.8-mile long
pipeline connection to the Central Basin Municipal Water District system. The water is supplied for cooling
tower make-up, boiler make-up, combustion turbine evaporative coolers and combustion turbine water wash.
Permits, Licenses and Approvals. The operation of the MGS is subject to a variety of federal, state
and local laws and regulations. Certain permits and approvals were transferred to the City as part of the assets
purchased upon the acquisition of the MGS Assets by the City under the Purchase and Sale Agreement. Other
permits and governmental approvals relating to the operation of MGS were obtained by the City following the
acquisition of the MGS Assets. For the permits and government approvals that the City has not yet obtained,
the City has initiated the application processes and expects to be able to obtain all such permits and
governmental approvals in compliance with all applicable federal, state and local regulations.
SCPPA Palo Verde Nuclear Generating Station Interest.
General. PVNGS is located approximately 50 miles west of Phoenix, Arizona. PVNGS consists of
three nuclear electric generating units (numbered 1, 2 and 3), with a net maximum capacity of 1,333 MWs
(unit 1), 1,336 MWs (unit 2) and 1,334 MWs (unit 3) and a dependable capacity of 1,311 MWs (unit 1), 1,314
MWs (unit 2) and 1,312 MWs (unit 3). PVNGS’ combined design capacity is 4,003 MWs and its combined
dependable capacity is 3,937 MWs. Each PVNGS generating unit has been operating under 40-year Full-
Power Operating Licenses granted by the Nuclear Regulatory Commission (the “NRC”). In April 2011, the
NRC approved PVNGS’ license renewal application, allowing the three units to extend operation for an
additional 20 years until 2045, 2046 and 2047, respectively. The co-owners of PVNGS approved such
extensions. Co-owners of PVNGS include Arizona Public Service Company (“APS”), the Salt River Project
Agricultural Improvement and Power District, a political subdivision of the state of Arizona, and the Salt River
Valley Water Users’ Association, a corporation (together, the “Salt River Project”), Southern California
Edison (“Edison”), El Paso Electric Company, Public Service Company of New Mexico, SCPPA and the City
of Los Angeles. APS is the operating agent for PVNGS. SCPPA has informed the City that all other permits,
licenses and approvals necessary to operate PVNGS have been secured.
SCPPA is a joint powers agency in which the City participates. SCPPA has a 5.91% ownership
interest in the PVNGS. The City has entered into the PVNGS Contract with SCPPA which provides the City
with a 4.90% generation entitlement interest in SCPPA’s ownership share in PVNGS (totaling approximately
11 MWs of dependable capacity). Under the PVNGS Contract, the City is obligated to pay 4.90% of SCPPA’s
costs associated with PVNGS, including operation and maintenance costs and debt service on SCPPA bonds
issued for the project. The City’s payment obligations under the PVNGS Contract are on a “take-or-pay”
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basis, pursuant to which the City is required to make the payments whether or not the output of PVNGS is
interrupted, suspended or terminated. The City’s payment obligations under the PVNGS Contract are required
to be treated as Operation and Maintenance Expenses under the Indenture and any future electric revenue bond
indenture or contract. The PVNGS Contract provides that under certain circumstances, the City’s entitlement
share to the output of PVNGS and its related payment obligations (including its debt service payment
obligation) can be increased to compensate for defaults by other SCPPA participants in their respective
contracts with SCPPA in connection with PVNGS. As of June 30, 2021, SCPPA had no bonds outstanding for
PVNGS.
In Fiscal Year 2021, PVNGS provided 90,951 MWhs of energy to the City. The City’s share of
PVNGS costs under the PVNGS Contract for Fiscal Year June 30, 2021 was $3,290,405. The City expects
that PVNGS will provide approximately 90,272 MWhs of energy to the City in Fiscal Year 2022, or an
estimated 7% of the total needed to satisfy the City’s load requirements.
Nuclear Regulatory Commission Initiatives. The NRC has broad authority under federal law to
impose licensing and safety-related requirements for the operation of nuclear generation facilities. Events at
nuclear facilities of other operators or impacting the industry generally may lead the NRC to impose additional
requirements and regulations on existing and new facilities. For instance, as a result of the March 2011
earthquake and tsunami that caused significant damage to the Fukushima Daiichi Nuclear Power Plant in
Japan, various industry organizations developed action plans for American nuclear power plants and the NRC
undertook an independent review of the events at Fukushima Daiichi, including a review of the agency’s
processes and regulations in order to determine whether the agency should promulgate additional regulations
and possibly make more fundamental changes to the NRC’s system of regulation.
On March 12, 2012, the NRC issued the first regulatory requirements for all 104 operating nuclear
reactors located in the United States based on the task force evaluations. The NRC issued three orders that
modify operating licenses by requiring the following safety enhancements: (1) mitigation strategies to respond
to extreme natural events resulting in the loss of power at plants; (2) ensuring reliable hardened containment
vents; and (3) enhancing spent fuel pool instrumentation. On January 4, 2013, the NRC issued guidance to
enable U.S. nuclear power plant operators to perform seismic and flooding hazard assessments, which was
undertaken at PVNGS in September 2014.
The NRC has required PVNGS to increase the redundancy in its power supply to emergency cooling
systems, reinforce its spent fuel pool, accelerate the transfer of spent fuel from the pool to the dry cask storage,
and add pipelines and associated equipment necessary for supplying additional cooling water to the reactors.
In response to such requirements, PVNGS has purchased additional diesel generators, pumps and fire trucks
and has accelerated the movement of its spent fuel casks to the storage facility. In addition to these actions,
PVNGS has allotted approximately $122 million (of which the City is responsible for approximately
$350,000) for initiatives developed in response to the failure at the Fukushima Daiichi Nuclear Power Plant,
including, among other things, fuel building modifications, an emergency equipment storage facility,
temporary power connections, seismic and flood hazards validation and corresponding mitigating strategies.
Additional NRC-mandated requirements are anticipated, but the costs associated with these future projects are
unknown at this time.
In the event of noncompliance with its requirements, the NRC has the authority to impose monetary
civil penalties or a progressively increased inspection regime that could ultimately result in the shutdown of
one or more generating units, depending upon the NRC’s assessment of the severity of the situation, until
compliance is achieved. The increased costs resulting from penalties, a heightened level of scrutiny and
implementation of plans to achieve compliance with NRC requirements may adversely affect the Electric
System’s financial condition, results of operations and cash flows.
Decommissioning Costs. The owners of PVNGS have created external trusts in accordance with the
PVNGS participation agreement and NRC requirements to fund the costs of decommissioning PVNGS. Based
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on the most recent estimate of decommissioning costs, which uses the extended license expiration date of 2047
and is the most recent estimate available, and assumed future investment earnings, the City estimates that its
share of the amount required for decommissioning PVNGS relating to the City’s interest in PVNGS through
SCPPA is fully funded. SCPPA’s share is $172 million, of which the City’s portion is $8.4 million. As of
June 30, 2021, SCPPA’s available decommissioning funds totaled $186.4 million.
Nuclear Waste Storage and Disposal. Generally, federal and state efforts to provide adequate interim
and long-term storage facilities for low-level and high-level nuclear waste have proven unsuccessful to date.
Although federal and state efforts continue with respect to such storage and disposal facilities, the City is not
able to predict the schedule for the permanent disposal of radioactive wastes generated at PVNGS. APS,
which currently stores PVNGS spent nuclear fuel in on-site pools near the units, has advised the City (through
SCPPA) that until a permanent repository for high-level nuclear waste developed by the federal government
becomes available, additional on-site spent fuel storage is required by using dry casks similar to those currently
used at other nuclear plants. Since the spent fuel pools ran out of storage capacity, an independent spent fuel
storage installation was built to provide additional spent fuel storage at the site while awaiting permanent
disposal at a federally developed facility. The installation uses dry cask storage and was designed to accept all
spent fuel generated by PVNGS during its lifetime. As of June 30, 2021, over 152 casks, each containing 24
spent fuel assemblies, have been stored. If required, the on-site storage facility can be expanded from its
current size to accommodate additional waste. APS estimates that the storage facility has sufficient storage
capacity to store all low-level radioactive waste produced at PVNGS until the end of operation of PVNGS.
Since the event at the Fukushima Daiichi nuclear power plant (described above under the subcaption “—
Nuclear Regulatory Commission Initiatives,” PVNGS embarked on a program to accelerate the transfer of
spent fuel from the spent fuel pools to the dry cask storage facility, thus reducing the heat load inside the spent
fuel pools. Storage costs are partially paid using funds received by APS pursuant to a settlement agreement
with the United States government relating to nuclear waste disposal fees.
APS ships all of its low-level radioactive waste to available disposal sites in Utah and South Carolina.
In August 1995, a storage facility for low-level radioactive materials was opened at PVNGS to allow
temporary on-site storage in case the disposal sites are not available. APS estimates that the storage facility
has sufficient storage capacity to store all low-level radioactive waste produced at PVNGS until the end of
operations. This on-site storage facility remains fully available.
Hoover Uprating Project.
General. The Hoover Uprating Project consists principally of the uprating of the capacity of 17
generating units at the hydroelectric power plant (the “Hoover Plant”) of the Hoover Dam, located
approximately 25 miles from Las Vegas, Nevada on the Colorado River. Modern insulation technology made
it possible to “uprate” the nameplate capacity of the existing generators. The United States Bureau of
Reclamation (the “Bureau of Reclamation”) owns and operates the Hoover Dam facility and Western markets
the power from the facility. The Hoover Plant consists of 17 generating units and two service generating units
with a total installed capacity of approximately 2,074 MWs.
The City has entered into a Contract for Electric Service (the “CES”) with Western in connection with
power from the hydroelectric power plant of the Hoover Dam. Pursuant to the CES with Western, the City
made an upfront payment for its share of the construction cost of the Hoover Uprating Project, and received an
entitlement to approximately 22 MWs of capacity (calculated based on 1.1% of 1,951 MWs of total contingent
capacity) and 28,000 MWhs of associated energy annually from the Hoover Uprating Project. As a result of
the enactment of H.R. 470, “Hoover Power Allocation Act of 2011,” the City has been allocated 22 MWs of
capacity and 26,600 MWhs of associated energy per year through September 2067. While the City has
advanced its share of the construction funds required by the CES, the City remains liable for its share of the
operating costs of the Hoover Plant. The City’s payment obligations under the CES constitute Operation and
Maintenance Expenses of the Electric System.
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Drought Conditions. Because of prolonged drought conditions that have resulted in record low
Colorado River water levels, the City’s capacity entitlement at the Hoover Plant has been reduced from time to
time. Recent drought conditions have resulted in lower water levels and are expected to result in a material
adverse effect on the Hoover Plant’s capacity entitlement in the near future. According to the Bureau of
Reclamation forecasts, the lowest capacity level is expected to occur in February 2023, due to low water
levels, the implementation of a drought contingency plan, procedures relating to the operation of Lake Mead,
and scheduled maintenance activities. The minimum Hoover Plant capacity in February 2023 is expected to be
910 MWs with a potential maximum capacity of 1,315 MWs for the same month.
Environmental Considerations. The lower Colorado River has been included in a critical Habitat
Designated Area. This required the Bureau of Reclamation to prepare and file with the United States Fish and
Wildlife Service a Biological Assessment on the effect of its operations of the lower Colorado River on
endangered species therein. After the Biological Assessment was filed, the United States Fish and Wildlife
Service issued a Biological and Conference Opinion regarding the Bureau of Reclamation’s operations and
outlined remedial actions to be taken to correct adverse effects to endangered species. Such remedial actions
could affect the operation of the Hoover Plant, which would in turn affect Hoover Plant customers, including
the City. The City believes that any impact on future operations will be minor; however, there is a possibility
that major remediation actions could have a material impact on the Hoover Plant customers’ available capacity
from the Hoover Plant. The City’s entitlement with respect to the Hoover Plant accounts for less than 2% of
the Electric System’s portfolio, and any impact on the Electric System’s operations is not expected to be
significant. See the table entitled “Resources Used to Satisfy City Load Requirements” under the subcaption
“—General” above.
Reserve Generating Facilities.
H. Gonzales Generating Station. The City owns the H. Gonzales Generating Station, which is located
at Station A and consists of two gas turbine units. Each unit has a net capacity of 5.5 MWs. The two units are
used for resource adequacy and bid into the ancillary services market. As of the date of this Official Statement,
one of the units is not operational and the City does not currently plan to return the unit to operation. The City
bids these units on a daily basis for dispatch by California Independent System Operator Corporation (the
“CAISO”) under the Market Redesign and Technology Upgrade (“MRTU”) tariff amendment. Each of the
units is restricted to run on natural gas for no more than six hours per day.
Other Committed Resources.
Renewable Power Purchases. As discussed under the caption “—Renewable Energy Resources,” the
City has entered into power purchase agreements through SCPPA in connection with four renewable energy
projects: (i) the Puente Hills Landfill Gas-to-Energy Project (the “Puente Hills Landfill Project”); (ii) the
Astoria II Solar Photovoltaic Facility (“Astoria II”); (iii) the Antelope Demand Side Response 1 Solar Project
(“Antelope 1”); and (iv) the Desert Harvest/Maverick Project (the “Desert Harvest/Maverick Solar
Project”). These power purchase agreements supplied approximately 16% of the City’s energy requirements
in Fiscal Year 2021. Payments under these power purchase agreements constitute Operation and Maintenance
Expenses of the Electric System payable prior to debt service on the City’s Electric System Bonds.
Power Purchase Agreements.
Long-Term Power Contracts. Other than the contracts for the Committed Resources which are
described herein, the City currently has no other long-term power contracts with a term of one year or longer.
Short-Term Power Contracts. The City expects to provide power for the Electric System’s load
requirements which are not met by the Committed Resources or from new long-term power purchase contracts
through short-term power purchases. The cost of power under such contracts will vary depending upon
contract requirements and the then-current market price for energy, which is driven by a variety of factors,
such as the availability of generating resources in the region and weather conditions. The City’s electric rates
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include an Energy Cost Adjustment Billing Factor, the ECABF, to pass through to Electric System customers
changes in energy costs. See the caption “—Electric Rates—Energy Cost Adjustment Billing Factor.”
For Fiscal Year 2021, short-term power contracts accounted for a total of 310,671 MWhs of energy to
the Electric System (approximately 26% of all energy which was used to satisfy the load requirements to the
Electric System). For Fiscal Year 2022, short-term power contracts are projected to account for a total of
337,401 MWhs of energy to the Electric System (approximately 26.4% of all energy which will be used to
satisfy the load requirements of the Electric System). The City also uses short-term power contracts to meet a
portion of its renewable energy resource obligations from time to time. See the caption “—Renewable Energy
Resources.”
Renewable Energy Resources
In accordance with the California Renewable Energy Resources Act, which was enacted in 2011 as
SBX 1-2 (“SBX 1-2”), the City was required to develop and implement a renewable energy resources plan
which provides that a specified average of the Electric System’s retail sales must be procured from eligible
renewable energy resources. During the first compliance period (January 1, 2011 to December 31, 2013), an
average of 20% of the Electric System’s retail sales was required to be procured from eligible renewable
energy resources. During the second compliance period (January 1, 2014 to December 31, 2016), the Electric
System was obligated to make reasonable progress each year to ensure that it achieved 25% of retail sales from
eligible renewable energy resources by December 31, 2016. With the adoption of the regulations by the
California State Energy Resources and Conservation Development Commission, commonly known as the
California Energy Commission (the “CEC”) to enforce SBX 1-2, during the third compliance period
(January 1, 2017 to December 31, 2020), the City was required to procure eligible renewable energy resources
to satisfy a total of 27% of the Electric System’s 2017 retail sales, 29% of its 2018 retail sales, 31% of its 2019
retail sales and 33% of its 2020 retail sales. Subsequent State legislation provides for increasing renewable
resources requirements toward a goal of achieving 100% of retail sales of electricity in California being
supplied by eligible renewable energy and zero-carbon resources by 2045 as described under the caption “—
Developments Affecting the Power Supply—Senate Bill 100 – 100 Percent Clean Energy Act of 2018.”
In addition to the power purchase agreements for renewable projects which are described below, the
City is currently meeting its obligation under SBX 1-2 to acquire energy from renewable sources by carrying
over excess renewable power procurement from prior years, by purchasing renewable energy credits and by
the use of short-term contracts. See the caption “—Power Supply Resources—Power Purchase Agreements—
Short-Term Power Contracts” above and the subcaption “—Renewable Energy Credits” below.
The City’s renewable power resource portfolio, as well as certain potential options for additional
renewal power resources in the future, are described below.
Current Renewable Energy Resources.
Puente Hills Landfill Gas-to-Energy Project. The Puente Hills Landfill Project is a 46 MW
conventional Rankine Cycle Steam Power Plant that uses landfill gas (“LFG”) as fuel to generate electricity.
LFG is fired in the plant’s boilers, producing superheated steam which drives the turbine/generator to generate
electric power. The Puente Hills Landfill Project is located in the eastern area of the County approximately 15
miles from the City. It was constructed by the County Sanitation Districts of Los Angeles County (“LACSD”)
and began full commercial operation in January 1987.
On behalf of certain of its members, SCPPA entered into a power purchase with LACSD for 43 MW
of generating capacity from the Puente Hills Landfill Project. The City, through SCPPA, is entitled to 10 MW
of renewable capacity from the Puente Hills Landfill Project. The power purchase agreement, which expires
on December 31, 2030, is a take-and-pay contract under which the City’s obligation to make payments is
contingent upon the City’s receipt of electrical energy.
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Astoria II Solar Photovoltaic Facility. Astoria II is a 175 MW solar project that came online in late
2016. Astoria II is located on approximately 840 acres in Kern County north of the City and interconnects
with the CAISO system at Edison’s Whirlwind Substation. The City, in conjunction with five other SCPPA
members, participates in a power purchase agreement with Recurrent Energy to purchase 75 MW of the output
from Astoria II for 20 years. The power purchase agreement entitled the City to 20 MW of capacity from
January 2017 to December 2021 and 30 MW for the remaining contract period of January 2022 to December
2036. The power purchase agreement is a take-and-pay contract under which the City’s obligation to make
payments is contingent upon the City’s receipt of electrical energy.
Antelope Demand Side Response 1 Solar Project. Antelope 1 is a 50 MW solar project that was
developed by Sustainable Power Group (“sPower”) and came online on January 1, 2017. Antelope 1 is
located in the City of Lancaster in the northern area of the County. The City, through SCPPA, has an
agreement with Antelope DSR 1 LLC (a subsidiary of sPower) that entitles the City to 50% of the capacity (25
MW nameplate) and output of the project through December 31, 2036. The agreement is a take-and-pay
contract under which the City’s obligation to make payments is contingent upon the City’s receipt of electrical
energy.
In addition, the City and the City of Riverside (the other purchaser of the energy produced by
Antelope 1) negotiated an energy storage option in the Antelope 1 PPA which provides for the potential
design, building and operation of an energy storage facility, when economically feasible.
Desert Harvest/Maverick Solar Project. The Desert Harvest/Maverick Solar Project is a solar project
with a combined capacity of 650 MW that was developed by Desert Harvest II, LLC (“Desert Harvest”). The
project is located in Desert Center, an unincorporated area of Riverside County approximately 175 miles east
of the City. The City, through SCPPA, has an agreement with Desert Harvest that entitles the City to 12 MW
of output from the Desert Harvest/Maverick Solar Project. The City Council approved the agreement with
Desert Harvest and the term of the agreement continues through 2045. The agreement is a take-and-pay
contract under which the City’s obligation to make payments is contingent upon the City’s receipt of electrical
energy.
Renewable Energy Credits. From time to time, the City has purchased renewable energy credits as a
means of satisfying its renewable energy resource procurement obligations under SBX 1-2. The City
previously made purchases covering the third regulatory compliance period. In Fiscal Year 2021, the City
purchased energy credits for the compliance period ending in calendar year 2024.
Potential Renewable Energy Resources. In September 2008, the City purchased approximately
30,000 acres of land in Tehachapi, California (referred to as the Jaw Bone Area), for approximately $42
million. A portion of such land adjoins two established wind-powered electric generating facilities, one of
which is owned and operated by the Department of Water and Power of the City of Los Angeles (“LADWP”)
and the other by NextEra (FPL). In February 2010, the City sold approximately 13,000 acres of this land to
NextEra (FPL) for approximately $40 million and maintained certain transmission rights and easements on the
land. The City currently continues to own and maintain two remaining sections called the East and West lands
in the Jaw Bone Area. These two areas are on the east and west of the property sold to NextEra (FPL). These
two areas comprise about 18,000 acres. The City continues to explore methods to monetize this land with or
without outside developers and/or investors. The City believes the asset potential in such land is significant
enough to warrant continued ownership for the foreseeable future, and the City is not at this time soliciting any
offers to sell or lease such land. While the City does not anticipate using its own funds to develop renewable
energy resources on the Jaw Bone Area land owned by the City, the City does anticipate that some renewable
energy resources will be developed in the future to enable the City to recover some or all of its investment in
the Tehachapi property and the potential for providing power from renewable resources for the Electric
System’s renewable power resource portfolio.
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Renewable Pass-Through Charge. The City has implemented a Renewable Energy Cost Adjustment
Factor (the “RECAF”), which is added to its Electric System customer bills. The RECAF is intended to
recover the costs of renewable energy resources in excess of non-renewable market power. See the caption
“—Electric Rates—Renewable Energy Cost Adjustment Factor.”
Integrated Resource Plan
In order to provide a long-term strategy to meet the electric service needs of its customers and comply
with State and federal energy policies, including the policies which are discussed under the caption “—
Developments Affecting the Power Supply,” the City developed an Integrated Resource Plan (“IRP”) dated
November 20, 2018. The IRP is a road map which charts a resource acquisition strategy favoring the
procurement of more renewable energy resources and fewer carbon-emitting resources. Resource investment
decisions were evaluated using an integrated approach to ensure reliability and environmental stewardship, and
to ensure that mandated renewable resource requirements are achieved at the lowest possible cost.
Currently, for regulatory compliance purposes, renewable energy sources comprise approximately
33% of the City’s energy supply (including biofuel and renewable energy credits). The IRP establishes a goal
of increasing the Electric System’s renewable energy supply mix to 56% (equivalent to a 62% renewable
portfolio standard) by 2030 and decreasing the Electric System’s reliance on natural gas to 35% by 2030. In
order to meet these goals, the City will need to increase its acquisition of renewable energy by an additional
7% for the upcoming compliance period ending in 2024. In order to make use of such supplies, the IRP
contemplates that the City will increase its energy storage capability by approximately 1 MW per year in each
of calendar years 2023 through 2027. The City expects that energy storage technology will improve over time,
reducing energy storage costs.
While the IRP does not assume that electricity supplied by the natural gas-fired MGS will be part of
the City’s energy portfolio after 2028 (which was the original term of the Former PPTA), the IRP does
contemplate that the City will need an amount of base load generation within the Electric System service area
after 2028 which is equivalent to that which is currently provided by the MGS. The City will embark on an
updated IRP process beginning in 2022 that will consider generation planning after 2028, which will include
generation provided by the MGS.
The IRP has been approved by the City Council and filed with the CEC. The projected operating
results shown in this Official Statement reflect in part the goals that are set forth in the IRP. However, there
can be no assurance that such goals will be achieved as described in the IRP or that the goals which are set
forth in the current IRP will not be changed in the future. The City is required to update the IRP every five
years. See the caption “—Developments Affecting the Power Supply—Senate Bill 350 – Clean Energy and
Pollution Reduction Act of 2015.”
Transmission, Interconnections and Distribution Facilities
The Electric System is interconnected with the Edison system at the Laguna Bell substation. The City
owns the facilities within the City limits for the interconnection of the Electric System with the Edison system
and the distribution of electric power. The distribution facilities include approximately 30 miles of 66 kiloVolt
(“kV”) power lines (of which approximately 5% are underground), and approximately 125 miles of 7 kV
power lines (of which approximately 15% are underground). The Electric System has eight active primary
substations, three of which are dedicated customer substations and five are regular distribution substations.
See the caption “THE ELECTRIC SYSTEM—Capital Requirements” for a description of anticipated capital
improvements to the Electric System in the next five years.
The City relies on the California transmission system controlled by the CAISO to provide for
transmission of energy imported into the City and pays the associated CAISO charges. In 2007, the City sold
virtually all of its major transmission facilities. When the City sold its major transmission assets, the City
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retained certain transmission entitlements associated with existing transmission service contracts, which were
subsequently placed under the CAISO’s operational control under a transmission control agreement. The City,
as a participating transmission owner of the transmission entitlements under the CAISO’s operational control,
receives revenues associated with such existing transmission service contracts with Edison and LADWP
subject to the related transmission service contracts.
Developments Affecting the Power Supply
The City relied on short-term (less than one year) power purchase contracts to provide approximately
25% of the energy delivered by the Electric System in Fiscal Year 2021. The City anticipates relying on new
short-term power purchase contracts to provide for current load and any growth in its customer load which is
not met by Committed Resources.
A number of actions have been taken by regulatory agencies which affect the amount of power that
the City must have available in order to maintain resource adequacy and the nature of the electric resources
which the City must include in its resource base. Certain elements of these actions are described below.
Resource Adequacy. In 2006, the CAISO filed with the Federal Energy Regulatory Commission
(“FERC”) its MRTU tariff amendment to implement a comprehensive overhaul of the electricity markets
administered by the CAISO. The programs under the MRTU initiative were designed to implement market
improvements to assure grid reliability and more efficient and cost-effective use of resources and to create
technology upgrades that would strengthen the entire CAISO computer system. The California energy market
under the MRTU includes the following features, among others, which were not part of CAISO’s previous
real-time only market tariff:
An integrated forward market for energy, ancillary services and congestion management that
operates on a day-ahead basis;
Congestion management which represents all network transmission constraints;
Congestion Revenue Rights to allow market participants to manage their costs of transmission
congestion;
Local energy prices by price nodes (approximately 3,000 nodes in total), also known as locational
marginal pricing; and
New market rules and penalties to prevent gaming and illegal manipulation of the market as well
as modifications to certain existing market rules.
The MRTU became operational on April 1, 2009 and the initial MRTU tariff filed with FERC went
into effect at that time. Power is scheduled on a nodal basis, rather than the previous zonal system.
Furthermore, the MRTU incorporates the California Public Utilities Commission’s (“CPUC”) resource
adequacy requirements to ensure that there are adequate energy resources in critical areas. The MRTU
requires that all scheduling coordinators for all load-serving entities (“LSEs”), which include the City, meet
standards concerning forward capacity and energy procurements to meet their load requirements.
In September 2005, the Governor signed into law Assembly Bill 380 (“AB 380”), which requires
publicly-owned utilities (“POUs”) to procure adequate resources to meet their peak demands and reserves. In
October 2005, the CPUC issued a decision requiring that LSEs under its jurisdiction acquire capacity which is
sufficient to serve their forecast retail customer load plus a 15-17% reserve margin. The MRTU tariff
incorporates the CPUC’s resource adequacy requirements. The MRTU tariff imposes the CPUC’s resource
adequacy requirements on LSEs that are not CPUC jurisdictional entities, such as the City.
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The City has historically satisfied this reserve margin requirement through its power supply resources,
and the City believes that it will continue to have sufficient power resources to satisfy the system capacity
requirements as required by the MRTU and AB 380.
Senate Bill 350 – Clean Energy and Pollution Reduction Act of 2015. California Senate Bill 350
(“SB 350”), signed into law in 2015, extends and increased the mandate of the State’s renewable portfolio
standard (“RPS”) to a target of 50% by December 31, 2030 for the amount of electricity generated and sold to
retail customers from eligible renewable energy resources for retail sellers and POUs, including by interim
targets of (i) 40% of retail sales from eligible renewable energy resources by December 31, 2024; (ii) 45% of
retail sales from eligible renewable energy resources by December 31, 2027; and (iii) 50% of retail sales from
eligible renewable energy resources by December 31, 2030. SB 350 also provides for the doubling of energy
efficiency savings by January 1, 2030. In addition, large municipal electric systems such as the City were
required to adopt an IRP on or before January 1, 2019, and to update the plan at least once every five years.
See the caption “—Integrated Resource Plan” for a description of the City’s IRP.
Senate Bill 100 – 100 Percent Clean Energy Act of 2018. California Senate Bill 100 (“SB 100”),
signed into law in September 2018, accelerates the State’s RPS target as established by SB 350 from 50% by
2030 to 60% by 2030 and sets a goal of 100% “clean energy” by the year 2045. SB 100 requires retail electric
sellers and POUs to procure a minimum quantity of electricity products from eligible renewable energy
resources so that the total kWhs of those products sold to retail end-use customers achieve (i) 44% of retail
sales by December 31, 2024; (ii) 52% of retail sales by December 31, 2027; and (iii) 60% of retail sales by
December 1, 2030.
SB 100 additionally establishes that it is the policy of the State that eligible renewable energy
resources and zero-carbon resources supply 100% of retail sales of electricity to California end-use customers
by December 31, 2045. Along with SB 100, Governor Brown signed Executive Order B-55-18 that directs the
State to achieve carbon neutrality by 2045 and maintain net negative greenhouse gas (“GHG”) emissions
thereafter. The goal of carbon neutrality by 2045 is in addition to existing statewide targets of reducing GHG
emissions. By expanding the State’s carbon reduction goal, the State will also look to reduce carbon through
sequestration in forests, soils and other natural landscapes.
In furtherance of these goals, California Senate Bill 423, signed into law in September 2021, requires
the CEC, in consultation with the CAISO and the California Air Resources Board (“CARB”), to submit to the
State Legislature by December 31, 2023, an assessment of firm zero-carbon resources available to support a
clean, reliable and resilient electrical grid in California to achieve the State policy established by SB 100 and to
ensure that a transition to a zero-carbon electric system for the State does not cause or contribute to GHG
emissions increases elsewhere in the western grid.
In December 2020, the CEC adopted regulations to update its RPS enforcement procedures for POUs,
including to update regulations amended by both SB 350 and SB 100, among other enacted bills. This includes
implementing a provision relating to the long-term procurement of renewable resources which requires,
beginning January 1, 2021, that at least 65% of renewable procurement must be for a duration of 10 years or
more. The regulations implement the new RPS procurement requirements for the compliance periods between
2021 and 2030, establish soft procurement targets for the intervening years of the compliance periods to
demonstrate reasonable progress in meeting the RPS procurement target for the compliance periods, and
establish three-year compliance periods beginning after 2030. The regulations also define requirements for 10-
year procurement contracts for purposes of satisfying the long-term procurement requirement.
Assembly Bill 32 – Global Warming Solutions Act of 2006. California Assembly Bill 32 (“AB 32”),
which the Governor signed into law in 2006, requires that utilities reduce their GHG emissions to 1990 levels
by the year 2020. In addition, Senate Bill 32 (“SB 32”), which the Governor signed into law in 2016, requires
that statewide GHG emissions are reduced to 40% below 1990 levels by 2030.
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AB 32 tasked CARB with developing regulations for GHG emissions that became effective January 1,
2012. Emission compliance obligations under the cap-and-trade regulation (the “C&T Program”) began on
January 1, 2013. The C&T Program was implemented in phases, with the first phase lasting from January 1,
2013 to December 31, 2014. This phase placed an emission cap on electricity generators, importers and large
industrial sources emitting more than 25,000 metric tons of carbon dioxide-equivalent GHGs per year. In
2015, the C&T Program expanded to cover emissions from transportation fuels, natural gas, propane and other
fossil fuels.
The C&T Program requires electric utilities to have GHG allowances on an annual basis to offset
GHG emissions associated with generating electricity. CARB provides a free allocation of GHG allowances to
each electric utility to mitigate retail rate impacts. Thereafter, the utilities are required to purchase allowances
through the auction or on the secondary market to offset their associated GHG emissions. Each allowance can
be used for compliance purposes in the current year or carried over for future compliance use.
Any allowance not used for current year compliance or carried over for future compliance use must be
sold into the quarterly allowance auctions administered by CARB. Proceeds from the auctions must be used
for the intended purposes specified in AB 32 that include but are not limited to procurement of renewable
resources, energy efficiency and conservation programs and measures that provide clear GHG reduction
benefits.
Assembly Bill 398 – GHG Cap-and-Trade Program Extension. Assembly Bill 398 (“AB 398”),
which the Governor signed into law in 2017, extended the GHG C&T Program to December 31, 2030. This
bill was also a companion bill to Assembly Bill 617 (“AB 617”; see the subcaption “—Assembly Bill 617 –
Air-Quality Monitoring”). The City’s free allocation of GHG allowances is expected to be sufficient to meet
the City’s direct GHG compliance obligations through 2030.
Under the C&T Program, the City is required to consign 100% of its allowances and then purchase
allowances to meet its compliance obligation. Other components of AB 398 that require clarification are the
banking provisions and the specific GHG revenue spending requirement for revenues generated from the sale
of excess allowances. The Electric System will continue to monitor the outcome and impacts of the upcoming
regulations on its service territory and ratepayers.
Assembly Bill 617 – Air Quality Monitoring. AB 617, which the Governor signed into law in 2017,
was part of a legislative bill package with AB 398, which authorized the extension of the State’s C&T Program
(see the subcaption “—Assembly Bill 398 – GHG Cap-and-Trade Program Extension”). AB 617 addresses the
disproportionate impacts of air pollution in environmental justice communities. Both CARB and local air
districts are required to take specific actions to reduce air pollution and toxic air contaminants emitted from
commercial and industrial sources, including from electricity-generating facilities. The bill required CARB to
prepare a statewide monitoring plan regarding technologies and reasons for monitoring air quality and, based
on that plan, to identify the highest priority locations for the deployment of community level air monitoring
systems. Local air districts were required to deploy the air monitoring systems in the specified communities
by July 1, 2019. Additional locations for the deployment of the air monitoring systems are identified annually
by CARB. CARB is also required to provide grants to community-based organizations for technical assistance
and to support community participation in the programs. In turn, this effort requires local air districts to adopt
a community emissions reduction program. The City is not currently located in a community identified for
emissions reduction.
Additionally, AB 617 requires CARB to develop uniform reporting standards for air pollutants and
toxic air contaminants for specific uses, including electricity-generating facilities. Air districts are to adopt an
expedited schedule for implementing best available retrofit control technologies for the uses, while CARB will
identify these technologies.
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Lastly, AB 617 imposes additional reporting requirements for qualifying facilities. For the City, the
local air district is the South Coast Air Quality Management District (“SCAQMD”). CARB and SCAQMD
have held and continue to hold community meetings to implement the required elements of AB 617 within the
Los Angeles area. Although the City is not yet subject to reporting under AB 617, the City continues to
monitor developments under AB 617.
Assembly Bill 1110 - Greenhouse Gas Emissions Intensity Reporting. Assembly Bill 1110 (“AB
1110”), which the Governor signed into law in 2016, requires GHG emissions intensity data and unbundled
renewable energy credits to be included as part of retail suppliers’ power source disclosure reports and power
content label (“PCL”) to their customers. GHG emissions intensity factors will need to be provided for all the
retail electricity products. The inclusion of this new information requirement on the PCL began in 2021 for
calendar year 2020 data. In addition to being required to post the PCL on the City’s website, AB 1110 also
requires that PCL disclosures must be mailed to customers unless customers have opted for electronic
notifications. In accordance with this requirement, the City posts disclosures of the PCL on its website.
Assembly Bill 2514 – Energy Storage. Assembly Bill 2514 (“AB 2514”), which the Governor signed
into law on September 29, 2010, directs municipal electric utilities to consider setting targets for energy
storage procurement but emphasizes that any such targets must be consistent with technological viability and
cost effectiveness. The law’s main directives and their respective deadlines are to adopt an energy storage
system procurement target by October 1, 2014, if determined to be appropriate, to be achieved by each utility
by December 31, 2016, and a second target to be achieved by December 31, 2020. The City submitted its first
adopted target compliance report to the CEC by January 1, 2017 and submitted its second adopted target
compliance report to the CEC by January 1, 2021.
Energy storage (“ES”) has been advocated as an effective means for addressing the growing
operational problems of integrating intermittent renewable resources, as well as contributing to other
applications on and off the grid. In general, ES is a set of technologies which are capable of storing previously
generated electric energy and releasing that energy at a later time. Currently, the commercially available ES
technologies (or soon to be available technologies) consist of pumped hydroelectric generation, compressed air
systems, batteries and thermal ES systems. The City is currently reviewing the feasibility of ES projects in the
City.
Senate Bill 380 – Moratorium on Natural Gas Storage – Aliso Canyon. On October 23, 2015, a
significant gas leak was discovered at the Aliso Canyon natural gas storage facility, which makes up 63% of
total storage capacity of Southern California Gas Company (“SoCalGas”) and serves 17 gas fired power
generation units. On May 10, 2016, the Governor signed Senate Bill 380 (“SB 380”) into law, placing a
moratorium on Aliso Canyon’s natural gas storage usage until rigorous tests were performed and completed by
the California Geologic Energy Management Division (“CalGEM”) as to which wells could continue to be in
operation. This moratorium caused great concern regarding the reliability of natural gas supplies in the then
upcoming summer and winter months. An action plan study area was initiated to review the summer and
winter assessment that was conducted as a joint effort between the CPUC, CEC, CAISO and LADWP. It was
considered highly plausible that the market for natural gas could be affected by curtailed gas deliveries under
certain adverse low-flow gas scenarios.
Beginning June 1, 2016, SoCalGas implemented new Operational Flow Order (“OFO”) tariffs due to
limitations surrounding Aliso Canyon storage injections and withdrawals. These tariff changes were put in
place to reduce the probability of natural gas curtailments. These tighter OFO tariff restrictions were
scheduled to conclude upon the earlier of the return of Aliso Canyon to at least 450 million cubic feet per day
(“MMcfd”) of injection capacity and 1,395 MMcfd of withdrawal capacity, or March 31, 2017.
On July 19, 2017, CalGEM issued a press release to the effect that, in concurrence with the CPUC,
Aliso Canyon was safe to resume injections up to 28% of the facility’s maximum capacity. On that same day,
the CEC issued a different press release with a recommendation urging closure of Aliso Canyon in the long-
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term. On July 31, 2017, SoCalGas resumed injections. Withdrawals from Aliso Canyon could then be made
during emergency conditions to avoid electric load shed and/or gas curtailments to customers.
In August 2019, the CPUC approved a revision of the Aliso Canyon withdrawal policy, removing the
designation “facility of last resort,” allowing SoCalGas more flexibility to withdraw from the storage field to
maintain pipeline integrity. Since this change in policy, SoCalGas has been able to withdraw from the storage
field more freely, thus reducing the volatility in both the volume of locally available natural gas and local
natural gas pricing.
The Electric System has fulfilled its system reliability since the gas leak was discovered at the Aliso
Canyon facility. The City will continue to monitor developments in this area, but does not expect curtailment
of permitted withdrawals from the facility to have a significant effect on the Electric System’s ability to meet
customer demand.
Wildfire Mitigation Considerations
The City believes that the risk of damage to the Electric System as a result of wildfires is very low.
The Electric System does not have any overhead powerlines located within, or near the High Fire-Threat
District or Fire Threat Zones identified by the California State Department of Forestry and Fire Protection
(“CalFire”) or CPUC. Furthermore, the City’s service area is not within or near any wildland-urban interface
zones and more than ten miles from the nearest wild-land urban interface area.
Senate Bill 1028 (“SB 1028”), which was signed into law by the Governor in 2016, requires municipal
electric utilities to construct, maintain and operate their electrical lines and equipment in a manner that will
minimize the risk of catastrophic wildfire posed by those electrical lines and equipment. Senate Bill 901 (“SB
901”), which was signed into law by the Governor in 2018, addresses the response to, mitigation of and
prevention of wildfires. SB 901 requires municipal electric utilities to prepare before January 1, 2020 and
annually thereafter a wildfire mitigation plan. SB 901 further requires utilities to present their wildfire
mitigation plan in an appropriately noticed public meeting, to accept comments on the plan from the public,
other local and state agencies and interested parties and to verify that the plan complies with all applicable
rules, regulations, and standards, as appropriate. SB 901 also requires the utilities to contract with a qualified
independent evaluator to review and assess the comprehensiveness of its plan. The report of the independent
evaluator is to be made available on the Internet and to be presented at a public meeting of the utilities’
governing boards.
While governing boards must independently make a wildfire determination based on all the relevant
information, the CPUC’s Fire Threat Map is an important piece of analysis in this process. The Fire Threat
Map, which was adopted by the CPUC on January 19, 2018, does not include the Electric System’s service
area within a zone of elevated wildfire risk.
SB 1028 and SB 901 do not address existing legal doctrine relating to utilities’ liability for wildfires;
however, any future legislation that addresses the State’s inverse condemnation and “strict liability” issues for
utilities in the context of wildfires in particular could be significant for the electric utility industry, including
the City.
At the request of Vernon Public Utilities, the Vernon Fire Department performed an assessment of the
Electric System service territory’s risk of wildfire caused by electrical operations and equipment. The
assessment considered the City’s historical fire data, geographical location, location conditions and
information from the United States Forest Service’s Fire Modeling Institute, and CalFire’s Office of the State
Fire Marshal. A determination was made by the Vernon Fire Department that the City’s electrical equipment
and operations do not pose a risk of igniting a fire that could cause any significant or catastrophic wildfire
condition. Based on this assessment, the City Council made a wildfire mitigation plan determination at the
May 18, 2021 City Council meeting, determining that the City is not at risk of catastrophic wildfire resulting
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from the Electric System’s electrical lines and equipment, is not near a wildland-urban interface area and is not
listed as a “community at risk” by CalFire, and therefore that the Electric System does not pose a risk of
igniting a fire that could cause a wildfire.
Seismic Activity and Other Natural Disasters
The occurrence of any natural disaster in the City, including, without limitation, earthquake, landslide,
land subsidence, high winds, drought, fire or flood, could have an adverse material impact on the economy
within the City, the Electric System and the revenues available for the payment of the 2022 Bonds. Portions of
the Electric System may be at risk of damage or destruction from seismic activity. The City is not required to
maintain earthquake insurance on Electric System facilities under the Indenture, and does not currently
maintain such insurance. See the caption “GENERAL INFORMATION REGARDING THE CITY AND
THE SERVICE AREA—City Insurance.”
The City is located in a seismically active region. Significant faults are located near the City,
including the Newport-Inglewood Fault. There is potential for destructive ground shaking during the
occurrence of a major seismic event. In addition, land along fault lines may be subject to liquefaction during
the occurrence of such an event. In the event of a severe earthquake, there may be significant damage to both
property and infrastructure within the City, including the Electric System. The City has an emergency
response plan that would be implemented under such circumstances.
Newer Electric System facilities are designed to withstand earthquakes with minimal damage, as
earthquake loads are taken into consideration in the design of project structures. The impact of lesser
magnitude events is expected by the City to be temporary, localized and reparable. The Electric System has
never sustained major damage to its facilities or experienced extended incidences of service interruptions as a
result of seismic disturbances. All facilities have been designed and constructed in compliance with the City’s
construction standards. The electric utility is a signatory to both APPA and CUEA Mutual Assistance
agreements which would enable the City to reach out to local, regional and national utilities for any assistance
necessary to restore service in a major event.
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Customers, Retail Energy Sales, Revenues and Demand
The number of customers (based on meters), retail kWh sales and revenues derived from retail sales,
by classification of service, and peak demand during each of the last five Fiscal Years are listed below. The
City’s customer mix is primarily large and small industrial businesses, with large industrial customers
(monthly demand over 500 KW) comprising approximately 5% and small industrial customers (monthly
demand of 500 KW or less) comprising approximately 95% of the total revenues from retail sales for Fiscal
Year 2021.
CITY OF VERNON ELECTRIC SYSTEM
Customers, Retail Energy Sales, Revenues and Demand
Fiscal Years Ended June 30
2017 2018 2019 2020 2021
Number of Customers:
Residential 74 74 74 74 74
Small Industrial 1,210 1,218 1,223 1,231 1,238
Large Industrial 539 531 524 514 503
Other 939394 93 90
Total Customers(1) 1,916 1,916 1,915 1,912 1,905
Kilowatt Hour Retail Sales (in Millions):
Residential 0.4 0.3 0.3 0.3 0.3
Small Industrial 371.4 379.6 375.9 383.5 397.8
Large Industrial 713.1 687.8 685.6 692.8 742.8
Other 10.3 10.3 11.1 9.5 9.5
Total kWh Retail Sales 1,095.2 1,078.0 1,072.8 1,086.1 1,150.5
Revenues from Retail Sale of Energy ($000’s)
Residential $ 45 $ 36 $ 35 $ 34 $ 36
Small Industrial 59,123 62,112 62,278 62,629 66,724
Large Industrial 93,742 93,675 93,048 91,537 98,707
Other 1,958 2,101 2,174 1,848 1,932
Total Revenues from Retail
Sale of Energy(2) $ 154,869 $ 157,923 $ 157,535 $ 156,048 $ 167,399
Peak Retail Demand (MWs) 190.8 184.1 182.8 191.3 191.0
(1) Some businesses have more than one meter. The City considers each meter to be a customer.
(2) Excludes 2.85% AB 1890 public benefit surcharge pursuant to Section 385 of the California Public Utilities Code and
RECAF, as well as the previously levied fuel cost adjustment billing factor. See the caption “—Electric Rates—Energy
Cost Adjustment Billing Factor.”
Source: City.
Electric Rates
General. The Electric System’s retail rates are established by the City Council and are not subject to
regulation, review or approval by the CPUC or any other State or federal agency, although the CEC is
authorized to evaluate electric rate policies in furtherance of State regulatory goals and to make
recommendations to the Governor, the State Legislature and publicly owned electric utilities. The Electric
System provides no free service.
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Current rates are as follows:
Rate Type Rate
Domestic Customers
Customer Charge $3.48 per meter per month
Facilities Charge $0.56 per meter per month
Energy Charge 9.403 cents per kWh
Large Industrial Customers
Customer Charge $813.72 per meter per month
Automated Meter Reading Charge $13.80 per month
Demand Charge $22.13 per kilowatt per meter per month (on- and off-peak)
$26.33 per kilowatt per meter per month (mid-peak)
(May, June, October)
$27.04 per kilowatt per meter per month (on- and off-peak)
$31.04 per kilowatt per meter per month (mid-peak)
(July-September)
$17.53 per kilowatt per meter per month (on- and off-peak)
$21.73 per kilowatt per meter per month (mid-peak)
(November-April)
Energy Charge 17.655 cents per kWh (on- and off-peak)
18.575 cents per kWh (mid-peak)
(October-June)
21.374 cents per kWh (on- and off-peak)
23.499 cents per kWh (mid-peak)
(July-September)
Small Industrial Customers(1)
Customer Charge $813.72 per meter per month
Automated Meter Reading Charge $13.80 per month
Demand Charge $22.12 per kilowatt per meter per month (on- and off-peak)
$26.18 per kilowatt per meter per month (mid-peak)
(October-June)
$26.15 per kilowatt per meter per month (on- and off-peak)
$30.21 per kilowatt per meter per month (mid-peak)
(July-September)
Energy Charge 18.509 cents per kWh (on- and off-peak)
19.455 cents per kWh (mid-peak)
(October-June)
22.27 cents per kWh (on- and off-peak)
24.408 cents per kWh (mid-peak)
(July-September)
Minimum Charge $246.36 per month
Commercial Customers
Energy Charge 11.97 cents per kWh
Demand Charge $26.33 per meter per month
Minimum Charge $246.36 per month
(1) Demand of less than 500 kW.
Source: City.
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In addition to the above rates, customers pay: (1) a 3% surcharge for payments in lieu of tax and
franchise payments; (2) a 2.85% public benefits surcharge under California Assembly Bill 1890 (“AB 1890”);
(3) the ECABF (as discussed under the subcaption “—Energy Cost Adjustment Billing Factor”); (4) the
RECAF (as discussed under the subcaption “—Renewable Energy Cost Adjustment Billing Factor”); and
(5) the UUT, which is described in detail under the caption “SECURITY AND SOURCES OF PAYMENT—
Transfers to General Fund.”
Separate rate schedules apply to: (i) street and highway lighting services based upon factors such as
the strength of the lighting used, whether the billing is metered and ownership of the lighting equipment; and
(ii) electricity used for agricultural or water pumping purposes.
In addition, in 2019, the City adopted increases in Electric System rates averaging approximately
0.8% in Fiscal Year 2020, 1.9% in Fiscal Year 2021, 4% in Fiscal Year 2022 and 4% in Fiscal Year 2023. The
projected operating results set forth in this Official Statement assume that such adopted rate increases will be
implemented as expected, as well as additional rate increases averaging approximately 2.5% in Fiscal Year
2024 and thereafter, which have not yet been approved by the City Council. See the caption “ELECTRIC
SYSTEM FINANCIAL AND RELATED INFORMATION—Projected Operating Results and Debt Service
Coverage.”
Energy Cost Adjustment Billing Factor. In response to then-existing volatility in the cost of natural
gas, the City in 2006 entered into a gas supply agreement with the Vernon Natural Gas Financing Authority
(the “Authority”) for the purchase of a supply of prepaid natural gas to be supplied to the Authority by the gas
supplier under an agreement for purchase and sale of natural gas, which Agreement was assigned from the
Authority to the City. At that time, the City established a fuel cost adjustment billing factor in connection with
the cost of natural gas related to power generation and purchases, which was calculated and payable on a
monthly basis based on customer consumption. The fuel cost adjustment billing factor did not address other
costs to the City related to the purchase of fuel. Accordingly, in 2019, the City replaced the fuel cost
adjustment billing factor with the ECABF. The ECABF is calculated each month based on the City’s costs
and added to all retail customer bills for the following month. The ECABF enables the City to recover
changes in the amounts that the City pays for energy (other than renewable energy which is recovered through
the RECAF described below), natural gas and related capacity, transmission, transportation, grid management
and extraordinary expense costs.
Renewable Energy Cost Adjustment Billing Factor. To provide for the payment of additional costs
associated with satisfying renewable energy portfolio standards for the Electric System (including the cost of
GHG allowances associated with power generation and implementation charges under AB 32 (as discussed
under the caption “—Developments Affecting the Power Supply—Assembly Bill 32 – Global Warming
Solutions Act of 2006”)), the City has approved the RECAF, which is calculated based on kWh billed and
payable on a monthly basis. See the caption “—Renewable Energy Resources—Renewable Pass-Through
Charge.” The RECAF went into effect on January 1, 2012 and was added to all retail customer bills based on
electrical consumption, although the City did not levy any charges under the RECAF until 2013. The RECAF
adds an amount to each retail bill to recover the excess of the cost the City pays for renewable energy (or
substitutes therefor satisfying the City’s obligations to provide energy from renewable resources such as
renewable energy credits) over the cost of energy from non-renewable resources.
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Average Price. The table below sets forth the average billing price per kWh for the Electric System’s
various customer classes for the periods indicated.
CITY OF VERNON ELECTRIC SYSTEM
Average Billing Price
(Cents per Kilowatt Hour)
Fiscal Year Ended June 30
2017 2018 2019 2020 2021
Residential 12.10 11.69 11.60 10.30 10.45
Small Industrial 15.92 16.36 16.57 16.33 16.77
Large Industrial 13.15 13.62 13.57 13.21 13.29
Other 19.07 20.45 19.66 19.45 20.24
Weighted Average 14.14 14.64 14.68 14.37 14.55
Source: City.
Collection Procedures. All electric bills are due and payable on the date of billing and become
delinquent 20 days thereafter. Electric bills are consolidated with bills for water service. If payment is not
received 20 days after billing, a second notice will be delivered and a $10 fee will be assessed. If such bills
remain unpaid on the 35th day after billing, a door hanger will be hand delivered to the service address and a
$10 final notice fee will be assessed. All electric services are subject to termination after 45 days (in
accordance with applicable law) until all fees, charges, penalties and the entire delinquent balance have been
paid. Fees associated with a delinquency include a $26 returned check fee, a late charge equal to 5% of the
outstanding balance and a reconnection fee of $214.30.
Uncollectible Accounts. The City considers its write-offs for uncollectible accounts to be low by
electric utility industry standards for urban areas. In recent years, the annual write-offs for uncollectible
accounts had generally been less than 0.2% until Fiscal Year 2021. The City has attributed the increase in
annual write-offs in Fiscal Year 2021 to the impact of the COVID-19 pandemic and the related government
actions taken to mitigate the spread of COVID-19. The City has been awarded $1.1 million by the CAPP
arrearage program to aid the accounts that have fallen behind during the period of May 4, 2020 through June
15, 2021, which in turn is expected by the City to lower the uncollectible revenue amount as funds are
received. As of April 1, 2022, the City has received $670,915.75 of such funding.
CITY OF VERNON ELECTRIC SYSTEM
Uncollectible Accounts
Fiscal Year Ended
June 30
Uncollectible
Revenues
Percent of
Gross Billings
2017 $ 400,251 0.2%
2018 385,404 0.2
2019 287,762 0.2
2020 227,003 0.1
2021 1,769,261 1.0
Source: City.
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Largest Customers
The Electric System’s 20 largest customers (by electricity usage) for Fiscal Year 2021 accounted for
approximately 61% of the Electric System’s retail energy sales for such period. No single customer accounted
for more than approximately 12% of the Electric System’s retail energy sales during such period.
Customer concentration presents a risk in that if one or more of the Electric System’s largest
customers were to default on their payments for retail energy sales, or were to relocate their operations outside
of the City or otherwise cease their operations in the City, such failure to pay, relocation of operations or
ceasing of operations could have a material impact on the Electric System’s finances. No assurances can be
given by the City that any such failure to pay, relocation or cessation of operations will not occur during the
term of the 2022 Bonds.
The City believes that the risk that its largest customers will depart the City is low. As shown in the
second column of the table below, many of the 20 largest customers of the Electric System have been in the
City for decades. In addition, the City has a low vacancy rate of less than 1% (as of the first quarter of 2022,
the latest period for which such information is available), and the City believes that other businesses would
quickly fill any vacant spaces upon the departure of a large customer. See also the caption “—Electric Rates—
Uncollectible Accounts” for historical information with respect to writeoffs of delinquent accounts.
The customers of the Electric System which individually represented more than 1% of Electric System
Revenues in Fiscal Year 2021 are described in the below table in order of kWh purchased.
[Remainder of page intentionally left blank.]
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43 4868-6614-1977v4/022487-0010 CITY OF VERNON ELECTRIC SYSTEM Largest Customers (Fiscal Year 2021) Business Name Years In Vernon Type of Business kWhs Purchased Revenues Percent of Revenues 1. Matheson Tri Gas 13 Chemical Processing 182,848,646 $20,616,79312.32%2. Owens Illinois, Inc. 75 Container Packaging 102,821,506 12,653,307 7.563. Smithfield (Clougherty Packaging) 75 Food Processing 78,251,049 17,022,916 10.16 4. Rehrig Pacific Co. 46 Plastics 31,249,187 4,853,439 2.905. PABCO Paper Products Co. 62 Building Materials 30,488,862 4,765,155 2.856. Overhill Farms Inc. 28 Food 27,080,652 5,314,098 3.177. Crown Poly Inc. 22 Plastics 26,852,106 3,898,919 2.33 8. rPlanet Earth 4 Plastic Recycling 20,852,106 3,972,429 2.379. Command Packaging 24 Plastics 19,151,151 2,809,801 1.6810. Preferred Freezer Services Inc. 18 Cold Storage 17,240,199 2,822,519 1.6911. General Mills Inc. 38 Food Processing 15,848,737 2,571,708 1.5412. US Growers Cold Storage (Lineage) 45 Cold Storage 21,088,523 2,730,048 1.63 13. Baker Commodities 54 Environmental Recycling 13,635,190 2,277,138 1.3614. Golden West Trading 10 Food Processing 12,387,528 2,679,770 1.6015. CLW Foods LLC 8 Food Processing 11,779,710 2,016,010 1.2016. Millennium Products, Inc. 16 Food Processing 11,736,289 2,836,501 1.69 17. J&J Snack Foods Corp. 24 Food Processing 11,358,225 1,826,589 1.0918. Norton Packaging Co. 16 Plastics 10,619,012 1,660,107 0.9919. 7-UP Bottling Co. 24 Food Processing 10,346,503 2,225,634 1.3320. Camino Real Foods Inc. 39 Food Processing 10,181,372 2,015,972 1.20 TOTAL(1) 665,816,553$101,568,853 60.7% (1) Totals may not add due to rounding. Source: City. Resolution No. 2022-10 Page 54 of 152 ________________________
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Capital Requirements
The following table lists the expected annual capital requirements for the Electric System to be paid
from amounts in the Light and Power Fund for Fiscal Years 2022 through 2025. Projects to be completed
include substation transformer construction, upgrades, replacements and improvements and equipment
purchases. The City does not currently expect to finance any such capital requirements from the proceeds of
Bonds, other than the remaining proceeds of the 2020A Bonds. See the caption “PLAN OF FINANCE—MGS
Acquisition Project.” See also the caption “—Integrated Resource Plan” above. Vernon’s IRP will be used in
conjunction with the development of future capital improvements plans for the Electric System.
Fiscal Year Ending
June 30 Capital Requirements
2022 $ 16,527,137
2023 14,237,500
2024 14,088,326
2025 13,876,093
Total $58,729,056
Source: City.
Outstanding Electric System Parity Obligations
Following the issuance of the 2022 Bonds and the defeasance of all of the outstanding 2012A Bonds
and a portion of the 2012B Bonds, the following obligations payable from Revenues on a parity with the 2022
Bonds will be outstanding.
2008A Bonds. In 2008, the City issued the 2008A Bonds to finance certain Electric System capital
projects. The 2008A Bonds were outstanding in the aggregate principal amount of $37,895,000 as of April 2,
2022 and are payable in semiannual installments at an interest rate of 8.590%. The 2008A Bonds mature on
July 1, 2038. The obligation of the City to pay the 2008A Bonds is payable from Revenues on parity with the
2022 Bonds.
2012B Bonds. In 2012, the City issued the 2012B Bonds to finance and refinance certain Electric
System capital projects. The 2012B Bonds were outstanding in the aggregate principal amount of $35,100,000
(of which $23,595,000 is expected to be refunded by the 2022 Bonds) as of April 2, 2022 and are payable in
semiannual installments at interest rates of between 6.250% and 6.500%. The 2012B Bonds mature on
August 1, 2026. The obligation of the City to pay the 2012B Bonds is payable from Revenues on parity with
the 2022 Bonds.
2015A Bonds. In 2015, the City issued the 2015A Bonds to finance and refinance certain Electric
System capital projects. The 2015A Bonds were outstanding in the aggregate principal amount of
$111,720,000 as of April 2, 2022 and are payable in semiannual installments at interest rates of between
4.050% and 4.850%. The 2015A Bonds mature on August 1, 2026. The obligation of the City to pay the
2015A Bonds is payable from Revenues on parity with the 2022 Bonds.
2020A Bonds. In 2020, the City issued the 2020A Bonds to finance and refinance certain Electric
System capital projects. The 2020A Bonds were outstanding in the aggregate principal amount of $19,305,000
as of April 2, 2022 and are payable in semiannual installments at interest rates of 5.000%. The 2020A Bonds
mature on August 1, 2037. The obligation of the City to pay the 2020A Bonds is payable from Revenues on
parity with the 2022 Bonds.
2021A Bonds. In 2021, the City issued the 2021A Bonds to finance the acquisition of the MGS. The
2021A Bonds were outstanding in the aggregate principal amount of $173,815,000 as of April 2, 2022 and are
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payable in semiannual installments at interest rates of 5.000%. The 2021A Bonds mature on April 1, 2028.
The obligation of the City to pay the 2021A Bonds is payable from Revenues on a parity with the 2022 Bonds.
ELECTRIC SYSTEM FINANCIAL
AND RELATED INFORMATION
Financial Statements
A copy of the audited financial statements of the Electric Fund of the City for the Fiscal Year ended
June 30, 2021 (the “Financial Statements”) prepared by the City’s independent auditor, CliftonLarsonAllen
LLP, Irvine, California (the “Auditor”), is set forth in Appendix A. The Auditor’s letter dated March 3, 2022
is set forth therein. The Financial Statements should be read in their entirety. The Auditor has not reviewed,
audited or performed any procedures with respect to this Official Statement.
The summary operating results for the Fiscal Years ended June 30, 2017 through June 30, 2020 that
are contained under the caption “—Summary of Operating Results” are derived from the Financial Statements
and audited financial statements for prior Fiscal Years (excluding certain non-cash items and after certain other
adjustments), and are qualified in their entirety by reference to such statements, including the notes thereto.
The summary operating results for the Fiscal Year ended June 30, 2021 that are contained under such caption
have been derived from unaudited financial statements of the City’s Electric Fund. The City expects that its
annual financial report of the Electric Fund containing the audited financial statements of the Electric Fund as
of June 30, 2021 will be available in December 2021. The annual financial reports of the City are routinely
posted on its website.
The City accounts for moneys received and expenses paid in accordance with generally accepted
accounting principles applicable to public entities (“GAAP”). In certain cases, GAAP requires or permits
moneys that are collected in one Fiscal Year to be recognized as revenue in a subsequent Fiscal Year and
requires or permits expenses that are paid or incurred in one Fiscal Year to be recognized as expenses in a
subsequent Fiscal Year. See Note 1 to the Financial Statements that are set forth in Appendix A. Except as
otherwise expressly noted herein, all financial information that has been derived from the City’s audited
financial statements of the Electric Fund reflects the application of GAAP.
The Electric System of the City is accounted for as within the Vernon Public Utilities Fund, a
proprietary fund type (enterprise fund). In governmental accounting, enterprise funds are used to account for
operations that are financed and operated in a manner similar to private business enterprises, where the intent
is that the costs (expenses, including depreciation) of providing goods or services to the general public on a
continuing basis are to be financed or recovered primarily through user charges, or where periodic
determination of revenues earned, expenses incurred and/or net income is deemed appropriate for capital
maintenance, public policy, management control, accountability or other purposes.
Proprietary funds are accounted for using the “economic resources” measurement focus and the
accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in
which they are earned while expenses are recognized in the period in which the liability is incurred.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues, such as charges for services, result from exchange transactions associated with the principal activity
of the fund. Exchange transactions are those in which each party receives and gives up essentially equal
values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange
transactions or ancillary activities. Operating expenses include the cost of sales and services and
administrative expenses. All expenses which do not meet this definition (other than depreciation, a non-cash
item which is not reflected in this Official Statement) are reported as non-operating expenses.
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Financial Policies
The City has adopted several policies which are designed to provide guidance for the prudent and
effective management of City operations, including an investment policy and a debt management policy.
Further information about the City’s investment policy and debt policy are set forth below.
Investment Policy. The City invests its funds in accordance with the City’s investment policy (the
“Investment Policy”), which was most recently amended on June 15, 2021. The Investment Policy sets forth
the policies and procedures that are applicable to the investment of City funds and designates eligible
investments. The Investment Policy also sets forth stated objectives, including the assurance of the safety of
invested funds by limiting credit and market risks, the maintenance of sufficient liquidity, compliance with law
and the attainment of the best yield or returns on investments. Funds are invested in the following order of
priority:
Safety of Principal;
Liquidity; and
Yield.
The City Council has delegated the authority to invest funds of the City to the City Treasurer, who
must invest City funds in accordance with the “prudent investor standard” under California Civil Code § 2261
et seq.
The Investment Policy provides a number of permitted investment categories, including: (i) United
States Treasury securities and other federal government securities with a maximum maturity of 5 years;
(ii) asset-backed securities with a maximum maturity of 5 years; (iii) certificates of deposit with a maximum
maturity of 5 years (limited to 30% of the portfolio); (iv) bankers’ acceptances with a maximum maturity of
180 days (limited 40% of the portfolio); (v) repurchase agreement with a maximum maturity of one year;
(vi) money market mutual funds (limited to 20% of the portfolio); and (vii) the Local Agency Investment Fund
of the State (limited to $75 million).
As of June 30, 2021, the City had total moneys invested in the amount of $113,911,932 in permitted
investments under the Investment Policy (excluding cash and capital reserves of the Electric System, which are
discussed under the caption “ELECTRIC SYSTEM FINANCIAL INFORMATION—Available Cash”). The
City has not specifically allocated any portion of such amounts to the Light and Power Fund.
The City Treasurer is required to provide a quarterly report to the City Administrator and the City
Council detailing the City’s investments, dates of maturity, amounts invested, current market value, rate of
interest and other such information as may be required by the City Council. For additional information
relating to the Investment Policy, see Note 2 to audited financial statements of the Electric Fund set forth in
Appendix A.
Debt Management Policy. The City’s debt management policy addresses the matters that are required
by California Government Code § 8855(i), including: (i) the purposes for which debt proceeds may be used;
(ii) the types of debt that may be issued; (iii) the relationship of the debt to, and integration with, the City’s
capital improvement program or budget; (iv) policy goals related to the City’s planning goals and objectives;
and (v) the internal control procedures which ensure that the proceeds of each debt issuance are directed to
their intended use.
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Available Cash
As of April 1, 2022, the Electric System had approximately $171,058,242 in available cash reserves,
including approximately $55,523,139 in reserves that are currently allocated to future capital projects but can
be reallocated to other purposes in the City’s discretion amounts and amounts on deposit in the Expense
Stabilization Fund. See the caption “SECURITY AND SOURCES OF PAYMENT—Expense Stabilization
Fund.” This amount is equivalent to approximately 364 days of Operation and Maintenance Expenses.
Summary of Operating Results
A summary of historical revenue, expenses, and debt service coverage for the City’s Electric System
for the last five Fiscal Years is shown in the following table. The information in this summary was prepared
by the City from information derived from audited annual financial statements for such Fiscal Years. The
annual financial reports of the City are routinely posted on its website.
The summary below presents the calculation of Net Revenues and Debt Service coverage based upon
the flow of funds required under the Indenture and not in accordance with GAAP as used in the preparation of
the City’s financial statements for the Electric System. In accordance with the Indenture, depreciation,
amortization and other non-cash items are not included in Operation and Maintenance Expenses.
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CITY OF VERNON ELECTRIC SYSTEM
Historical Revenues, Expenses and Debt Service Coverage Under Indenture(1)(8)
Fiscal Year Ended June 30
2017 2018 2019 2020(15) 2021
Revenues
Electric Sales—Retail $153,683,228 $154,792,355 $157,112,457 $161,988,653 $162,987,498
Fuel Cost Adjustment/ECABF(2) 1,016,141 1,204,680 4,084,277 443,292 2,721,905
RECAF(3) 11,780,337 7,715,544 6,794,373 10,579,631 10,756,715
VPU Credit(4) ---- (7,505,248) (3,685,465) (276,231)
Transmission Revenue 2,645,901 2,844,994 2,401,176 2,986,532 2,773,285
Investment Income(5) 332,982 1,151,127 1,532,262 918,236 57,190
Non-Recurring Income (Loss)(6) -- 1,121,763 12,824 ----
Other(7) 5,386,390 5,669,963 7,756,839 5,227,203 5,588,986
Total Revenues $174,844,979 $174,500,426 $172,188,960 $178,458,082 $184,609,349
Expense Stabilization Fund Transfers
Withdrawal/Transfer from Expense
Stabilization Fund $ 2,400,000 $ 9,300,000 $ 7,400,000 $ 6,750,000 $ --
Less: Deposits of Current Revenues to
Expense Stabilization Fund ------ ----
Total Adjusted Revenues $177,244,978 $183,800,427 $179,588,960 $185,208,081 $184,609,349
Operation and Maintenance Expenses(8)
Fuel costs(9) $ 2,420,075 $ 2,895,975 $ 9,211,403 $ 5,599,650 $ 8,631,370
Costs of Renewable Resources(10) 12,603,877 13,878,758 8,454,325 13,934,096 13,079,768
Costs of Energy(11) 63,889,251 57,897,096 54,136,234 55,513,201 62,977,786
City Allocated Administrative Costs(12) 3,018,677 3,018,677 3,018,677 3,079,051 3,140,632
Other(13) 24,291,552 30,123,626 35,849,431 43,952,232 44,150,883
Total Operation and Maintenance Expenses $106,223,431 $107,814,133 $110,670,070 $122,078,230 $131,980,439
Adjusted Net Revenues
Available for Debt Service $ 71,021,547 $ 75,986,294 $ 68,918,890 $ 63,129,852 $ 52,628,910
Debt Service(14) $ 44,245,160 $ 45,312,321 $ 47,379,349 $ 47,071,332 $ 44,728,498
Debt Service Coverage Ratio 1.61 1.68 1.45 1.34 1.18
Debt Service Coverage Ratio (Excluding
Expense Stabilization Fund Transfers) 1.55 1.47 1.30 1.20 1.18
Adjusted Net Revenues Remaining
After Debt Service $ 26,776,387 $ 30,673,973 $ 21,539,541 $ 16,158,520 $ 7,900,412
Selected Balance Sheet Information
(as of June 30)
Expense Stabilization Fund $ 14,186,726 $ 27,618,339 $ 20,478,226 $ 13,913,980 $ 13,917,555
Light and Power Fund 96,699,830 101,942,893 97,986,257 108,350,186 109,567,925
Total $110,886,556 $129,561,232 $118,464,813 $122,264,166 $123,485,480
(1) Totals may not add due to rounding.
(2) In 2019, the fuel cost adjustment billing factor was replaced by the ECABF which allows for recovery of changes in costs of
energy, natural gas and related capacity, transmission, transportation, grid management and extraordinary expense costs. See
“THE ELECTRIC SYSTEM—Electric Rates—Energy Cost Adjustment Billing Factor.”
(3) The RECAF allows for recovery of incremental costs associated with satisfying renewable resource obligations. See “THE
ELECTRIC SYSTEM—Electric Rates—Renewable Energy Cost Adjustment Billing Factor.”
(4) Reflects a 5% credit to customers under a program to offset an increase in the City’s user utility tax. The credit was reduced to
2% in Fiscal Year 2020 and discontinued thereafter.
(5) Does not include unrealized gain (loss) on investments or increase (decrease) in fair market value of investments.
(6) Includes legal settlement and sale of emission credits.
(7) Includes proceeds of 2.85% AB 1890 public benefit surcharge. See the caption “THE ELECTRIC SYSTEM—Electric Rates—
General.”
(8) Operation and Maintenance Expenses excludes depreciation, amortization and certain other non-cash items.
(Footnotes to table continue on next page.)
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(Footnotes to table continued from previous page.)
(9) Includes costs associated with natural gas purchased under the Supply Agreement and takes into account investment income
relating to the Vernon Natural Gas Financing Authority. The term of the Supply Agreement terminated in Fiscal Year 2021.
Increase in Fiscal Year 2019 reflects increase in market price of natural gas in winter 2019 as a result of maintenance outages on
SoCalGas pipelines as well as cold weather. Fiscal Year 2020 and 2021 reflect recent volatility in natural gas prices as a result of
increased demand due to higher levels of liquefied natural gas exports, inclement weather, dry hydrological conditions, and
interstate pipeline outages.
(10) Includes costs associated with renewable resources in accordance with RPS and regulatory requirements.
(11) Represents net energy purchases and wholesale sales and capacity sales (including the Former PPTA). In Fiscal Year 2017 and
2018, also includes the Hoover Contract for Differences under which the City swapped certain economic benefits and burdens
under the CES with Western for fixed energy and capacity payments. The Hoover Contract for Differences terminated in
September 2017). Increase in costs of energy in Fiscal Year 2021 reflects higher natural gas and power prices due to higher levels
of liquefied natural gas exports, inclement weather, dry hydrological conditions, and interstate pipeline outages.
(12) Represents costs incurred for City services benefitting the Electric System.
(13) Includes, among other things, transmission costs, grid management charges, ancillary services, FERC fees, maintenance service
contracts and other Electric System administrative expenses. Increase in Fiscal Year 2019 reflects increases in CAISO
transmission costs.
(14) Reflects debt service on outstanding Parity Obligations.
(15) Increases in Revenues and Operation and Maintenance Expenses above Fiscal Year 2019 levels reflect significant increase in
business operations of Matheson Tri-Gas, the Electric System’s largest customer by kWhs purchased. See “THE ELECTRIC
SYSTEM—Largest Customers.” Increase in Operation and Maintenance Expenses above Fiscal Year 2019 levels also reflects
higher market price for natural gas.
Source: City.
Adoption of New GASB Statement Affecting Fiscal Year 2018
The City restated the beginning balance of the Electric System’s Fiscal Year 2018 net position to
retroactively reflect the implementation of Governmental Accounting Standards Board Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other than Pensions and the corresponding
adjustment to the Electric System’s share of the City’s net other post-employment benefits. As a result of this
adjustment, the Electric System’s beginning net position was increased by $101,877 for Fiscal Year 2018.
Projected Operating Results and Debt Service Coverage
Set forth below are the City’s projections of Revenues, Operation and Maintenance Expenses and
Debt Service coverage of the Electric System (calculated in accordance with the Indenture) for the current and
next four Fiscal Years. The projected operating results are based on the City’s load forecasts, its estimated
costs of power and other operating and non-operating expenses. Except for actual expenses to date for the
current Fiscal Year, the City has forecasted such other operating and non-operating expenses taking into
consideration the Electric System’s historical costs and trends, projected load growth and inflation. The
summary below presents the calculation of Net Revenues and Debt Service coverage based upon the flow of
funds required under the Indenture and not in accordance with GAAP. In accordance with the Indenture,
depreciation, amortization and other non-cash items are not included in Operation and Maintenance Expenses.
Certain assumptions have been made by the City in the development of the forecasts, including the
assumptions which are set forth in the footnotes to the below table. Among the assumptions made by the City
are the following:
1. Economic activity by businesses within the City is assumed to result in load growth of 1%
annually.
2. Renewable power costs in excess of market power will be included in customers’ bill as a
RECAF.
3. Renewable energy resources are assumed to serve City load in accordance with the State-
mandated RPS requirement at an estimated average cost of $33.26 per MWh from Fiscal Year
2023 through Fiscal Year 2026.
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4. Projected fuel costs are based on forecasted average monthly prices at Citygate, with natural
gas prices assumed to range from $6.15 per MMBtu in Fiscal Year 2022 to $4.28 per MMBtu
in Fiscal Year 2026.
5. Projected market energy purchases are based on forecasted average monthly energy prices at
CAISO SP-15, with market energy prices assumed to range from $55.06 per MWh in Fiscal
Year 2022 to $44.28 per MWh in Fiscal Year 2026.
While the City believes that the above assumptions are reasonable, there can be no assurance that the
assumed conditions will in fact occur. The City’s projections may be affected (favorably or unfavorably) by
unforeseen future events which could cause actual results to differ materially from those presented below.
Therefore, the results projected in the following table cannot be assured.
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CITY OF VERNON ELECTRIC SYSTEM
Projected Revenues, Expenses and Debt Service Coverage Under Indenture(1)(9)
Fiscal Year Ending June 30
2022 2023 2024 2025 2026
Revenues
Electric Sales—Retail(2) $178,226,506 $187,829,845 $194,450,847 $201,305,240 $208,401,250
ECABF(3) 5,612,736 16,464,838 9,391,701 8,235,357 6,162,409
RECAF(4) 10,258,683 10,269,212 8,793,493 7,488,394 8,188,525
Transmission Revenue(5) 1,948,612 3,000,000 3,060,000 3,121,200 3,183,624
Investment Income(6) 300,000 306,000 312,120 318,362 324,730
Other(7) 6,827,397 6,818,051 7,102,701 7,330,285 7,565,435
Total Revenues $203,173,934 224,687,947 223,110,863 227,798,838 233,825,973
Projected Expense Stabilization
Fund Transfers
Withdrawal/Transfer from Expense
Stabilization Fund(8) 0 7,000,000 6,500,000 7,000,000 9,000,000
Less: Deposits of Current Revenues to
Expense Stabilization Fund 00 0 0 0
Total Adjusted Revenues $203,173,934 $231,687,947 $229,610,863 $234,798,838 $242,825,973
Operation and Maintenance Expenses(9)
Fuel costs $ 21,835,733 $ 33,079,361 $ 29,707,933 $ 28,631,006 $ 26,651,770
Costs of Renewable Resources(10) 12,230,706 12,269,212 10,793,493 9,488,394 10,188,525
Costs of Energy(11) 59,033,557 41,971,650 38,355,689 39,427,816 42,012,362
City Allocated Administrative Costs(12) 3,203,444 3,267,513 3,332,863 3,399,520 3,467,511
Other(13) 45,435,087 51,159,269 52,470,748 53,722,493 55,113,876
Total Operation and Maintenance
Expenses $141,738,527 $141,747,005 $134,660,725 $134,669,229 $137,434,044
Adjusted Net Revenues
Available for Debt Service $ 61,435,407 $ 89,940,942 $ 94,950,138 $100,129,608 $105,391,928
Debt Service(14) $ 51,850,265 $ 69,707,353 $ 69,710,204 $ 69,706,537 $ 69,703,002
Debt Service Coverage Ratio 1.18 1.29 1.36 1.44 1.51
Debt Service Coverage Ratio (Excluding
Expense Stabilization Fund Transfers) 1.18 1.19 1.27 1.34 1.38
Adjusted Net Revenues Remaining
After Debt Service $ 9,585,142 $ 20,233,590 $ 25,239,934 $ 30,423,071 $ 35,688,926
Projected Fiscal Year End
Expense Stabilization Fund Reserve(8) $ 38,917,555 $ 31,917,555 $ 25,417,555 $ 18,417,555 $ 9,417,555
(1) Totals may not add due to rounding.
(2) Assumes load growth of 1% annually. Reflects adopted increases in Electric System rates averaging approximately 4% for Fiscal
Year 2022 and 4% for Fiscal Year 2023. Also reflects additional rate increases averaging 2.5% in Fiscal Years 2024, 2025 and 2026
which have not yet been approved by the City Council. There can be no assurance that the City Council will not make further
adjustments to rates that have currently been adopted. Actual rates to be effective are subject to adoption by the City Council.
(3) The ECABF allows for recovery of natural gas and related capacity, transmission, transportation, grid management and extraordinary
expense costs. See “THE ELECTRIC SYSTEM—Electric Rates—Energy Cost Adjustment Billing Factor.”
(4) The RECAF allows for recovery of costs associated with satisfying renewable resource obligations. See “THE ELECTRIC
SYSTEM—Electric Rates—Renewable Energy Cost Adjustment Billing Factor.”
(5) Increase in Fiscal Year 2023 reflects proposed Edison transmission service charges effective January 1, 2022 under existing
transmission service contract between Edison and the City. As a participating transmission owner in the CAISO, the City receives
the revenues associated with such existing transmission service contract and pays Edison. See “THE ELECTRIC SYSTEM—
Transmission, Interconnections and Distribution Facilities.” Assumes increases of approximately 2% per annum in each subsequent
Fiscal Year.
(6) Assumes a 0.2% earnings rate on fund balances.
(7) Includes proceeds of 2.85% AB 1890 public benefit surcharge. See the caption “THE ELECTRIC SYSTEM—Electric Rates—
General.”
(Footnotes to table continue on next page.)
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(Footnotes to table continued from previous page.)
(8) As provided in the Indenture, Adjusted Revenues includes amounts withdrawn from the Expense Stabilization Fund for any
period. In each fiscal year, unspent amounts not constituting current year Revenues for such period may be returned to the
Expense Stabilization Fund and made available for use in subsequent fiscal years.
(9) Operation and Maintenance Expenses excludes depreciation, amortization and certain other non-cash items.
(10) Includes projected costs associated with procurement of renewable resources in accordance with RPS and regulatory
requirements.
(11) Includes projected costs of operating the MGS following acquisition. Includes and net energy purchases and wholesale sales and
capacity sales (including costs under Hoover CES and PVNGS Contract and costs of reserve generation). Does not reflect costs
under the Long-Term Services Contract as modified by the Change Order.
(12) Represents costs anticipated to be incurred for City services benefitting the Electric System. Projected to increase by
approximately 2% per annum.
(13) Includes, among other things, transmission costs, grid management charges, ancillary services, FERC fees, maintenance service
contracts and other Electric System administrative expenses.
(14) Reflects the issuance of 2021 Bonds. Assumes the delivery of the 2022 Bonds in May 2022 and the defeasance of the Refunded
2012 Bonds as described under the caption “PLAN OF FINANCE—Refunding of the 2012 Refunded Bonds.”
Source: City.
Employee Benefit Obligations
Pension Obligations. Accounting and financial reporting by state and local government employers
for defined benefit pension plans is governed by Governmental Accounting Standards Board (“GASB”)
Statement No. 68 (“GASB 68”). GASB 68 governs the accounting treatment of defined benefit pension plans,
including how expenses and liabilities are calculated and reported by state and local government employers in
their financial statements. GASB 68 includes the following components: (i) unfunded pension liabilities are
included on the employer’s balance sheet; (ii) pension expense incorporates rapid recognition of actuarial
experience and investment returns and is not based on the employer’s actual contribution amounts; (iii) lower
actuarial discount rates are required to be used for underfunded plans in certain cases for purposes of the
financial statements; (iv) closed amortization periods for unfunded liabilities are required to be used for certain
purposes of the financial statements; and (v) the difference between expected and actual investment returns
will be recognized over a closed five-year smoothing period. GASB 68 affects the City’s accounting and
reporting requirements, but it does not change the City’s pension plan funding obligations.
The City participates in a Miscellaneous plan to fund pension benefits for employees who operate the
Electric System. The City’s Miscellaneous plan is administered by the California Public Employees
Retirement System (“CalPERS”). CalPERS administers an agent multiple-employer public employee defined
benefit pension plan for all of the City’s full-time and certain part-time employees. CalPERS provides
retirement, disability and death benefits to plan members and beneficiaries and acts as a common investment
and administrative agent for participating public entities within the State, including the City. CalPERS plan
benefit provisions and all other requirements are established by State statute and the City Council.
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City employees are subject to different benefit levels based on their hire date. Current benefit
provisions for City employees are set forth below.
CITY OF VERNON
CalPERS Miscellaneous Pension Plan – Summary of Benefit Provisions
Employees Hired Before
January 1, 2013
Employees Hired On or
After January 1, 2013 (Not
Prior CalPERS Members)
Benefit Formula 2.7% @ age 55 2.0% @ age 62
Benefit Vesting 5 years of service 5 years of service
Benefit Payments Monthly for life Monthly for life
Minimum Retirement Age 50 52
Monthly Benefits as % of
Eligible Compensation 2.0% - 2.7%1.0% - 2.5%
Employee Normal Cost 8.0%(1)6.250%(2)
Employer Normal Cost Rate 11.380% 11.380%
(1) Employees who were hired before January 1, 2013 are required to make the full employee contribution.
(2) Employees who were hired on or after January 1, 2013 who were not previously CalPERS members are required to make
the full employee contribution.
Source: City.
City employees who were hired on and after January 1, 2013 and who were not previously CalPERS
members receive benefits based on a 2.0% at age 62 formula; such employees are required to make the full
amount of required employee contributions themselves under the California Public Employees’ Pension
Reform Act of 2013 (“AB 340”), which was signed by the State Governor on September 12, 2012. AB 340
established a new pension tier: the 2.0% at age 62 formula, with a maximum benefit formula of 2.5% at age
67. Benefits for such participants are calculated on the highest average annual compensation over a
consecutive 36-month period. Employees are required to pay at least 50% of the total normal cost rate. AB
340 also capped pensionable income for 2021 as noted below. Amounts are set annually, subject to Consumer
Price Index increases, and retroactive benefits increases are prohibited, as are contribution holidays and
purchases of additional non-qualified service credit.
CITY OF VERNON
Pensionable Income Caps for Calendar Year 2022 (AB 340 and Non-AB 340 Employees)
Employees Hired Before
January 1, 2013
(Non-AB 340 Employees)
Employees Hired After
January 1, 2013
(AB 340 Employees)
Maximum Pensionable Income $305,000 $161,969
Maximum Pensionable Income if also
Participating in Social Security N/A $134,974
Source: City.
Additional employee contributions, limits on pensionable compensation and higher retirement ages for
new members as a result of the passage of AB 340 are expected to reduce the City’s unfunded pension lability
and potentially reduce City contribution levels in the long term.
The City is also required to contribute the actuarially determined remaining amounts necessary to fund
benefits for its members. Employer contribution rates for all public employers are determined on an annual
basis by the CalPERS actuary and are effective on the July 1 following notice of a change in the rate. Total
plan contributions are determined through the CalPERS annual actuarial valuation process. The total
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minimum required employer contribution is the sum of the plan’s employer normal cost rate (expressed as a
percentage of payroll) plus the employer unfunded accrued liability contribution amount (billed monthly). The
normal cost rate is the annual cost of service accrual for the upcoming Fiscal Year of active employees.
Required employer normal cost rates for Fiscal Year 2022 are 11.380% for all benefit levels, and the
required employer payment of the unfunded accrued liability is $3,924,534. Required employer normal cost
rates for Fiscal Year 2023 will be 11.500% for all benefit levels, and the required employer payment of the
unfunded accrued liability will be $4,716,035.
The Miscellaneous plan contributions for Fiscal Years 2020 and 2021 were $4,500,718 and
$4,979,905, respectively. The City currently expects its annual required contribution for the Miscellaneous
plan in Fiscal Year 2022 to be approximately $5,826,164. The share of such contributions which is attributable
to the Electric System is determined based on the proportion of Light and Power Fund payroll expenditures to
payroll expenditures for all City employees who participate in the Miscellaneous plan. Such share was 12% in
Fiscal Year 2021, and is expected to be approximately 13.9% in Fiscal Year 2022.
The City’s required contributions to CalPERS fluctuate each year and, as noted, include a normal cost
component and a component equal to an amortized amount of the unfunded liability. Many assumptions are
used to estimate the ultimate liability of pensions and the contributions that will be required to meet those
obligations. The CalPERS Board of Administration has adjusted and may in the future further adjust certain
assumptions used in the CalPERS actuarial valuations, which adjustments may increase the City’s required
contributions to CalPERS in future years. Accordingly, the City cannot provide any assurances that the City’s
required contributions to CalPERS in future years will not significantly increase (or otherwise vary) from any
past or current projected levels of contributions. CalPERS earnings reports for Fiscal Years 2010 through
2020 report investment gains of approximately 13.3%, 21.7%, 0.1%, 13.2%, 18.4%, 2.4%, 0.6%, 11.2%, 8.6%,
6.7% and 4.7%, respectively. Preliminary returns for Fiscal Year 2021 indicate an investment gain of 21.3%.
Future earnings performance may increase or decrease future contribution rates for plan participants, including
the City. The City notes that CalPERS’ earnings in Fiscal Year 2020 were below its investment targets as a
result of stock market declines in the wake of the COVID-19 pandemic, which could increase future
contribution rates for plan participants, including the City. See the caption “GENERAL INFORMATION
REGARDING THE CITY AND THE SERVICE AREA—COVID-19.”
On December 21, 2016, the CalPERS Board of Administration voted to lower its discount rate from
7.50% to 7.00% over a three period. For public agencies such as the City, the new discount rate took effect
July 1, 2017. Lowering the discount rate means that employers which contract with CalPERS to administer
their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Active members
hired after January 1, 2013 will also see their contribution rates rise under AB 340. The reduction of the
discount rate will result in average employer rate increases of approximately 1% to 3% of normal cost as a
percentage of payroll for most retirement plans such as the City’s plans. Additionally, many employers will
see a 30% to 40% increase in their current unfunded accrued liability payments (relative to the unfunded
accrued liability payments projected in the June 30, 2015 valuation report) for pension plans. These payments
are made to amortize unfunded liabilities over 20 years to bring pension funds to a fully funded status over the
long-term.
The announcement on July 12, 2021 that CalPERS achieved a preliminary investment return of 21.3%
for the period from July 1, 2020 through June 30, 2021 caused the CalPERS Board of Administration to lower
CalPERS’ discount rate from 7.00% to 6.80% on November 15, 2021 in accordance with a risk mitigation
policy that was adopted in 2015, which calls for the discount rate to be lowered if returns exceed the then-
current discount rate by two or more percentage points. There can be no assurance as to whether or when the
CalPERS Board of Administration will consider lowering the discount rate.
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Portions of the above information are primarily derived from information that has been produced by
CalPERS, its independent accountants and its actuaries. The City has not independently verified such
information and neither makes any representations nor expresses any opinion as to the accuracy of the
information that has been provided by CalPERS.
The comprehensive annual financial reports of CalPERS are available on CalPERS’ Internet website
at www.calpers.ca.gov. The CalPERS website also contains CalPERS’ most recent actuarial valuation reports
and other information that concerns benefits and other matters. The textual reference to such Internet website
is provided for convenience only. None of the information on such Internet website is incorporated by
reference herein. The City cannot guarantee the accuracy of such information. Actuarial assessments are
“forward-looking” statements that reflect the judgment of the fiduciaries of the pension plans, and are based
upon a variety of assumptions, one or more of which may not materialize or be changed in the future.
The City’s Miscellaneous plan had a total net pension liability of approximately $41,962,530 for the
Fiscal Year ended June 30, 2020 and approximately $46,618,461 for the Fiscal Year ended June 30, 2021. The
net pension liability is the difference between the total pension liability and the fair market value of pension
assets. The City’s total pension assets include funds that are held by CalPERS, and its net pension asset or
liability is based on such amounts.
For Fiscal Years 2020 and 2021, the City incurred Miscellaneous plan pension expenses of
$11,118,252 and $8,691,162, respectively.
A summary of principal assumptions and methods used to determine the total pension liability for
Fiscal Year 2021 is shown below.
CITY OF VERNON
Actuarial Assumptions for CalPERS Miscellaneous Pension Plan
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.625%
Salary Increases Varies by entry age and service
Investment Rate of Return 7.25% net of pension plan investment and administrative expenses; includes
projected inflation rate of 2.625%
Mortality Rate Table(1) Derived using CalPERS’ membership data for all funds
(1) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality
improvements using 90% of Scale MP-2016 published by the Society of Actuaries.
Source: City.
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Changes in the net pension liability for the City’s Miscellaneous plan in the most recent Fiscal Year
for which information is available were as follows:
CITY OF VERNON
Changes in CalPERS Miscellaneous Pension Plan Net Pension Liability
Increase / (Decrease)
Total
Pension Liability
Plan Fiduciary
Net Position
Net Pension
Liability / (Asset)
Balance at June 30, 2019 $175,949,364 $133,986,834 $ 41,962,530
Balance at June 30, 2020 184,953,577 138,335,116 46,618,461
Net Changes for period from July 1, 2019
through June 30, 2020 $ 9,004,213 $ 4,348,282 $ 4,655,931
Source: City.
The table below presents the net pension liability of the City’s Miscellaneous plan, calculated using
the discount rate applicable to Fiscal Year 2021 (7.15%), as well as what the net pension liability would be if it
were calculated using a discount rate that is 1 percentage point lower (6.15%) or 1 percentage point higher
(8.15%) than the Fiscal Year 2021 rate:
CITY OF VERNON
Sensitivity of the CalPERS Miscellaneous Pension Plan Net Pension Liability to
Changes in the Discount Rate
Discount Rate – 1%
(6.15%)
Applicable Discount Rate
(7.15%)
Discount Rate + 1%
(8.15%)
Plan’s Net Pension Liability/(Asset) $73,079,036 $46,618,461 $24,971,929
Source: City.
The City’s projections of Operation and Maintenance Expenses under the caption “ELECTRIC
SYSTEM FINANCIAL INFORMATION—Projected Operating Results and Debt Service Coverage” do not
assume unusual increases in CalPERS contributions or other labor costs in the future. However, no assurance
can be provided that such expenses will not increase significantly in the future. The City does not expect that
any increased funding of pension benefits will have a material adverse effect on the ability of the City to pay
the 2022 Bonds.
For additional information relating to the City’s CalPERS Miscellaneous pension plan, see Note 8 to
Vernon Public Utilities’ audited financial statements set forth in Appendix A.
Possible Issuance of Pension Obligation Bonds. In March 2022, the City Council approved the
issuance of pension obligation bonds, the proceeds of which, if issued, would be applied to pay a portion of the
City’s CalPERS Miscellaneous and Safety pension plan liability, among other things. The pension obligation
bonds are currently the subject of a judicial validation proceeding and there can be no assurance that such
bonds will be issued, or as to the timing or amount of any such issuance. If issued, the pension obligation
bonds would not be secured by a pledge and lien on or payable from Revenues of the Electric System.
Post-Employment Benefits. In addition to the pension benefits that are described under the caption
“—Pension Obligations,” the City provides certain health care benefits for retired employees and eligible
dependents. Substantially all of the City’s full-time employees who are eligible for pension benefits may
become eligible for such other post-employment benefits. As of June 30, 2021, 179 employees meet these
eligibility requirements and 115 retirees or their beneficiaries participate in the plan, with another 29 eligible to
participate but not yet doing so.
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GASB Statement No. 75 (“GASB 75”) requires governmental agencies to account for and report
outstanding obligations and commitments related to post-employment benefits in essentially the same manner
as for pensions. For the City, the reporting obligation began in Fiscal Year 2018.
The City retained Van Iwaarden Associates (the “Actuarial Consultant”) to calculate the City’s post-
employment benefits funding status. In a report dated May 14, 2021 (the “Report”), the Actuarial Consultant
concluded that, as of June 30, 2021, the City’s net liability for post-employment benefits was $20,211,850.
The Actuarial Consultant also concluded that the City’s actuarially determined contribution for Fiscal Year
2022 (the actuarial value of benefits earned during Fiscal Year 2022 plus costs to amortize the unfunded
actuarial accrued liability, or “ADC”) is $1,538,693. The share of such contribution which is attributable to
the Electric System is expected to be approximately 13.9% in Fiscal Year 2022. An ADC of approximately
$2,692,868 and $1,931,700 was recognized for post-employment health care benefits in Fiscal Years 2020 and
2021, respectively.
Changes in the net liability for the City’s post-employment benefit plan were as follows.
CITY OF VERNON
Changes in Post-Employment Benefit Plan Liability
Increase / (Decrease)
Total
Post-Employment
Benefit Plan Liability
Plan Fiduciary
Net Position
Net Post-Employment
Benefit Plan
Liability / (Asset)
Balance at June 30, 2020 $ 26,186,840 $ 4,268,189 $ 21,918,651
Balance at June 30, 2021 27,215,028 7,003,178 20,211,850
Net Changes for period from July 1,
2020 through June 30, 2021 $ 1,028,188 $ 2,734,989 $ (1,706,801)
Source: City.
The following table presents the net liability of the City’s post-employment benefits plan, calculated
using the discount rate applicable to Fiscal Year 2021 (6.25%), as well as what the net post-employment
benefit liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.25%) or
1 percentage point higher (7.25%) than the Fiscal Year 2021 rate:
CITY OF VERNON
Sensitivity of the Post-Employment Benefit Plan Net Liability to Changes in the Discount Rate
Discount Rate – 1%
(5.25%)
Applicable Discount Rate
(6.25%)
Discount Rate + 1%
(7.25%)
Plan’s Net Liability/(Asset) $23,467,948 $20,21,850 $17,497,742
Source: City.
The City’s projections of Operation and Maintenance Expenses under the caption “ELECTRIC
SYSTEM FINANCIAL INFORMATION—Projected Operating Results and Debt Service Coverage” do not
assume unusual increases in post-employment benefit funding expenses in the future. However, future
changes in funding policies and assumptions, including those related to assumed rates of investment return and
healthcare cost inflation, could trigger increases in the City’s annual required contributions, and such increases
could be material to the finances of the City. No assurance can be provided that such expenses will not
increase significantly in the future. The City does not expect that any increased funding of post-employment
benefits will have a material adverse effect on the ability of the City to pay the 2022 Bonds.
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For additional information relating to the post-employment benefit plan, see Note 9 to Vernon Public
Utilities’ audited financial statements set forth in Appendix A.
FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY
The following discussion of legislative, regulatory and other factors affecting the electric utility
industry should be considered when considering an investment in the 2022 Bonds. This discussion does not
purport to be comprehensive or definitive, and these matters are subject to change subsequent to the date
hereof. The electric industry has historically been subject to continuing legislative and administrative reform.
The City cannot predict at this time whether any additional legislation or rules will be enacted which will
affect the finances or operations of the Electric System, but the impacts could be significant. Extensive
information on the electric utility industry is available from the legislative and regulatory bodies and other
sources in the public domain, and potential purchasers of the 2022 Bonds should obtain and review such
information. Such information is not incorporated herein by reference.
Federal Energy Legislation
Energy Policy Act of 2005. Under the federal Energy Policy Act of 2005 (“EPAct 2005”), FERC was
given refund authority over the behavior of market participants. Under FERC’s authority it can impose
penalties on any seller for using a manipulative or deceptive device, including market manipulation, in
connection with the purchase or sale of energy or of transmission service. The Commodity Futures Trading
Commission (“CFTC”) also has jurisdiction to enforce certain types of market manipulation or deception
claims under the Commodity Exchange Act.
EPAct 2005 authorized FERC to issue permits to construct or modify transmission facilities located in
a national interest electric transmission corridor if FERC determines that the statutory conditions are met.
EPAct 2005 also required the creation of an electric reliability organization (“ERO”) to establish and enforce,
under FERC supervision, mandatory reliability standards (the “Reliability Standards”) to increase system
reliability and minimize blackouts. The Reliability Standards apply to users, owners and operators of the
Bulk-Power System, as more specifically set forth in each Reliability Standard. On February 3, 2006, FERC
issued Order 672, which certified NERC as the ERO. Many Reliability Standards have since been approved
by FERC. The Reliability Standards include requirements related to cyber and physical security of systems
that could affect the reliable operation of the electric grid.
The ERO or the entities to which NERC has delegated enforcement authority through an agreement
approved by FERC (“Regional Entities”), such as the WECC, may enforce the Reliability Standards, subject
to FERC oversight, or FERC may independently enforce them. Potential monetary sanctions include fines in
excess of $1 million per violation per day. FERC Order 693 further provided the ERO and Regional Entities
with the discretion necessary to assess penalties for such violations, while also having discretion to calculate a
penalty without collecting the penalty if circumstances warrant.
Federal Regulation of Transmission Access
EPAct 2005 authorized FERC to compel “open access” to the transmission systems of certain utilities
that are not generally regulated by FERC, including municipal utilities if the utility sells more than four million
MWhs of electricity per year. Under open access, a transmission provider must allow all customers to use the
system under standardized rates, terms and conditions of service.
FERC Order 888 requires the provision of open access transmission services on a nondiscriminatory
basis by all “jurisdictional utilities” (which, by definition, does not include municipal entities like the City) by
requiring all such utilities to file Open Access Transmission Tariffs (“OATTs”). Order 888 also requires
“non-jurisdictional utilities” that purchase transmission services from a jurisdictional utility under an open
access tariff and that own or control transmission facilities to provide open access service to the jurisdictional
utility under terms that are comparable to the service that the non-jurisdictional utility provides to itself.
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Section 211A of EPAct 2005 authorizes, but does not require, FERC to order unregulated transmission utilities
to provide transmission services. Specifically, FERC may require an unregulated transmitting utility to
provide access to its transmission facilities: (1) at rates that are comparable to those that the unregulated
transmitting utility charges to itself; and (2) on terms and conditions (not relating to rates) that are comparable
to those under which the unregulated transmitting utility provides transmission services to itself which are not
unduly discriminatory or preferential.
On February 16, 2007, FERC issued Order 890, which concluded that reform of its pro forma OATT
was necessary to reduce the potential for undue discrimination and provide clarity in the obligations of
transmission providers and customers. Significantly, in Order 890, FERC stated that it will implement its
authority under Section 211A with respect to unregulated transmitting utilities on a case-by-case basis and
retain the current reciprocity provisions.
On July 21, 2011, FERC issued Order 1000, which among other things requires public utility
(jurisdictional) transmission providers to participate in a regional transmission planning process that produces
a regional transmission plan and that incorporates a regional and inter-regional cost allocation methodology.
Further, FERC stated that it has the authority to allocate costs to beneficiaries of transmission services, even in
the absence of a contractual relationship between the owner of the transmission facilities and the beneficiary.
Under EPAct 2005, FERC may not require municipal utilities to join regional transmission organizations, in
which participating utilities allow an independent entity to oversee operation of the utilities’ transmission
facilities. FERC has stated, however, that FERC expects such utilities to participate in the regional processes
for transmission planning and that FERC will pursue associated complaints against such utilities on a
case-by-case basis.
Federal Policy on Cybersecurity
In February 2013, then-President Obama issued an Executive Order “Improving Critical Infrastructure
Security” (the “Cybersecurity Order”). Among other things, the Cybersecurity Order called for improved
information sharing and processing of security clearances for owners and operators of critical infrastructure.
The Cybersecurity Order further required the Secretary of Commerce to direct the National Institute of
Standards and Technology (“NIST”) to lead the development of a framework (“Framework”) to reduce cyber
risks to critical infrastructure. The voluntary Framework will continue to be updated and improved as industry
provides feedback on implementation.
The Cybersecurity Information Sharing Act of 2015 was signed into law in December 2015. It created
an industry-supported, voluntary cybersecurity information sharing program which facilitates the secure
sharing of cyber-related threat information among both public and private sector entities. Participating entities
share and receive information about cybersecurity threats in real time through several hubs, including the
Electricity Information Sharing and Analysis Center (E-ISAC) and the National Cybersecurity and
Communication Integration Center, as tools to actively manage risk related to potential cyber intrusion.
Other Federal Legislation
Congress has considered and is considering numerous bills addressing domestic energy policies and
various environmental matters, including bills relating to energy supplies and development (such as a federal
energy efficiency standard and expedited permitting for natural gas drilling projects), cybersecurity, reducing
regulatory burdens, climate change and water quality. Many of these bills, if enacted into law, could have a
material impact on the City and the electric utility industry generally. In light of the variety of issues affecting
the utility sector, federal energy legislation in other areas such as reliability, transmission planning and cost
allocation, operation of markets, environmental requirements and cybersecurity is also possible. The City is
unable to predict the outcome or potential impacts of any possible legislation on the City at this time.
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Environmental Issues
General. Electric utilities are subject to continuing environmental regulation. Federal, State and local
standards and procedures which regulate the environmental impact of electric utilities are subject to change.
These changes may arise from new and changing legislative, regulatory and judicial action regarding such
standards and procedures. Consequently, there is no assurance that any Electric System facilities or projects
will remain subject to the laws and regulations currently in effect, will always be in compliance with future
laws and regulations or will always be able to obtain all required operating permits. In addition, the election of
new administrations, including the President of the United States, could substantially impact current
environmental standards and regulations and other matters described herein. New laws and regulations could
be imposed that could impact the City’s ability to operate the Electric System or impose significant compliance
costs. The inability to comply with environmental standards could result in, for example, additional capital
expenditures, reduced operating levels or the shutdown of individual units which are not in compliance. In
addition, increased environmental laws and regulations may create certain barriers to new facility
development, may require modification of existing facilities and may result in additional costs for affected
resources.
Greenhouse Gas and Other Regulations Under the Clean Air Act. The United States Environmental
Protection Agency (the “EPA”) regulates GHG emissions under existing law by imposing monitoring and
reporting requirements, and through its permitting programs. Like other air pollutants, GHGs are regulated
under the Clean Air Act through the Prevention of Significant Deterioration (“PSD”) Permit Program and the
Title V Permit Program. A PSD permit is required before commencement of construction of new major
stationary sources or major modifications of a major stationary source and requires best available control
technologies (“BACT”) to control emissions from the new or modified stationary source. Title V permits are
operating permits for major sources that consolidate all Clean Air Act requirements (arising, for example,
under the Acid Rain, New Source Performance Standards, National Emission Standards for Hazardous Air
Pollutants, and/or PSD programs) into a single document and the permit process provides for review of the
documents by the EPA, state agencies and the public. GHGs from major natural gas-fired facilities are
regulated under both permitting programs through performance standards imposing efficiency and emissions
standards. Under these permitting programs, as major stationary sources, combustion turbines such as the
MGS are also subject to regulations imposing national emission standards for hazardous air pollutants (HAP),
requiring the application of maximum achievable control technology for combustions, and new source
performance standards regulating nitrogen oxides (“NOx”) and sulfur dioxide.
On October 23, 2015, the EPA, under the Obama Administration, published the Clean Power Plan and
final regulations for (1) carbon pollution standards for new, modified, and reconstructed power plans, and
(2) carbon pollution emission guidelines for existing electricity utility generating units. The total national
emissions reduction goal under the Clean Power Plan targets an average of a 32 percent reduction from 2005
levels by 2030, with incremental interim goals for the years 2022 through 2029. The Clean Power Plan would
have allowed states multiple options for measuring reductions and different established reduction goals
depending upon the regulatory program set forth in the state plan. On July 8, 2019, the EPA issued final new
regulations entitled the “Affordable Clean Energy Rule” to replace the Clean Power Plan. On January 19,
2021, upon a challenge by a number of environmental advocates, state and municipal attorneys, and others, the
D.C. Circuit vacated the Affordable Clean Energy Rule. The City cannot predict the timing or content of any
new regulations that may be proposed to replace the Affordable Clean Energy Rule. At this time, the City does
not expect any such regulations to have material effects on its Electric System.
Air Quality – Ambient Air Quality Standards. The Clean Air Act requires that the EPA establish
National Ambient Air Quality Standards (“NAAQS”) for certain air pollutants. When a NAAQS has been
established, each state must identify areas in its state that do not meet the EPA standard (known as “non-
attainment areas”) and develop regulatory measures in its state implementation plan to reduce or control the
emissions of that air pollutant in order to meet the applicable standard and become an “attainment area.” The
EPA periodically reviews the NAAQS for various air pollutants and has in recent years increased, or proposed
to increase, the stringency of the NAAQS for certain air pollutants. These developments may result in stringent
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permitting processes for new sources of emissions and additional state restrictions on existing sources of
emissions, such as power plants. In addition, the U.S. Supreme Court found in its review of EPA v. EME
Homer City Generation, LP that the EPA has authority to impose a Cross-State Air Pollution Rule (the
“Transport Rule”) which curbs air pollution emitted in upwind states to facilitate downwind attainment of
three NAAQS. On November 26, 2014, the EPA proposed to strengthen the stringency of the NAAQS for
ozone by lowering the existing ozone standard of 75 parts per billion (“ppb”) to between 65 and 70 ppb,
although the EPA also sought public comment on a standard as low as 60 ppb. On October 1, 2015, the EPA
issued its final rule, lowering the ozone standard to 70 ppb. Legal challenges to the final rule have been filed
by a number of states and industry groups. On March 12, 2018, a federal district judge in Northern California
ordered the EPA to complete the strengthened 2015 ozone standard designations later in 2018. The EPA
noticed a final rule on December 6, 2018 implementing ozone NAAQS for non-attainment areas and
addressing state implementation plan requirements. That rule became effective on February 4, 2019. On
July 15, 2020, the EPA announced a proposed decision to retain the existing 70 ppb ozone standard. The
comment period closed on October 1, 2020. The decision was finalized on December 7, 2020. President
Biden issued an executive order instructing the EPA to consider suspending, revising or rescinding the
decision.
California law also mandates California ambient air quality standards (“CAAQS”), which are often
more stringent than national standards. CAAQS for particulate matter became effective in June 2003. Revised
CAAQS for ozone and nitrogen dioxide (NO2) went into effect in May 2006 and March 2008, respectively.
California law does not require that CAAQS be met by specified dates as is the case with NAAQS. Rather, it
requires incremental progress toward attainment. In addition, attainment of the NAAQS has precedence over
attainment of the CAAQS due to federal penalties for failure to meet federal attainment deadlines.
SCAQMD Air Quality Management Plan. The SCAQMD periodically prepares an overall plan,
known as an Air Quality Management Plan (the “AQMP”), which includes control measures to meet federal
air quality standards and incorporate the latest technical planning information. In March 2017, the SCAQMD
adopted its 2016 AQMP, which is a regional and multi-agency effort. The SCAQMD held stakeholder
working group meetings in connection with its development of rules and rule amendments to implement the
control measures included in the 2016 AQMP, and submitted their control measure plan to the EPA in
December 2019. The SCAQMD is in the early stages of the 2022 AQMP process, and is looking for a 45%
reduction in NOx emissions through this plan. The City will continue to monitor development of the 2022
AQMP for any emission reduction measures that will affect power plants. At this time, AQMP working
groups are primarily focusing on charging and fueling infrastructure needs and other mobile source categories.
Air Quality – Nitrogen Oxide (NOx) Emissions. In 1994, the SCAQMD implemented its Regional
Clean Air Incentives Market (“RECLAIM”) NOx regulations. In accordance with these regulations, the
SCAQMD established annual NOx allocations for stationary source facilities based on historical emissions
with a declining emissions cap. These allocations are in the form of RECLAIM trading credits (“RTCs”).
Facilities can comply with RECLAIM by purchasing RTCs from the RECLAIM market, installing emission
controls, and/or reducing operations.
In March 2017, the SCAQMD adopted the 2016 AQMP (as described above) and included a control
measure to achieve an additional five tons per day NOx reduction as soon as feasible but no later than 2025,
and to transition the RECLAIM program to a command-and-control regulatory structure requiring Best
Available Retrofit Control Technology (“BARCT”) as soon as feasible.
In July 2017, then-Governor Brown approved AB 617 which addresses criteria pollutants (including
NOx) and toxic air contaminants at stationary sources. RECLAIM facilities are subject to the BARCT
requirements of AB 617.
RECLAIM working group meetings have been ongoing related to the transition from the market-based
RECLAIM program to a command-and-control regulatory structure. The RECLAIM program was originally
scheduled to end on December 31, 2023 but is now expected to extend past 2024 after the EPA’s approval of
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the State Implementation Plan and the resolution of outstanding issues with the New Source Review (“NSR”)
Program. The RECLAIM working group has been having discussions regarding the NSR Program and its
applicability to major source modifications after exiting the RECLAIM Program. SCAQMD is currently
reviewing the current NSR process and is considering comments from stakeholders regarding SCAQMD’s
proposed changes to the NSR process. The MGS will transition from RECLAIM to a source-specific NOx rule
for electric generating units that will include NOx limits reflecting BARCT. SCAQMD Rule 1135, the
“command-and-control” rule for electric generating units, was adopted on November 2, 2018. Instead of
receiving an annual allocation of emission credits, electric generating units will be required to meet a NOx
emission limit. The NOx emission limits for simple cycle gas turbines is 2.5 parts per million (ppm) over a 60-
minute rolling average. SCAQMD is hosting additional working group meetings for Rule 1135 beginning in
May 2021 to amend the rule to include additional startup and shutdown provisions and ammonia slip limits.
Climate Change. Legislative and regulatory responses to climate change and the effects of climate
change have impacted, and could impact in the future, the costs and operations of electric utilities, including
the Electric System. A number of federal and state laws, rules and regulations that limit carbon dioxide and
other GHG emissions from electric generating facilities have been enacted. Absent legislative action by the
U.S. Congress, the EPA has authority to regulate carbon dioxide and other GHG emissions under the Clean Air
Act, and any future administrations could promulgate new rules or rules that replace the now-vacated
Affordable Clean Energy Rule. Furthermore, changes in temperatures, precipitation and the frequency and
severity of extreme weather events (such as tornadoes and flooding) and other impacts of climate change could
affect peak demands, the operations of the City’s Electric System and the costs of maintaining its facilities and
projects. The impacts of these weather events on current and future operations cannot be predicted at this time.
Electric and Magnetic Fields. A number of studies have been conducted regarding the potential
long-term health effects of exposure to electric and magnetic fields created by high voltage transmission and
distribution equipment. Additional studies are being conducted to determine the relationship between electric
and magnetic fields and certain adverse health effects, if any. At this time, it is not possible to predict the
extent of the costs and other impacts, if any, which the electric and magnetic fields concerns may have on
electric utilities, including the Electric System.
Other Factors
The electric utility industry in general has been, or in the future may be, affected by a number of other
factors which could impact the financial condition and competitiveness of many electric utilities and the level
of utilization of generating and transmission facilities. In addition to the factors that are discussed above, such
factors include, among others: (a) effects of compliance with rapidly changing environmental, safety,
licensing, regulatory and legislative requirements other than those described above (including those affecting
nuclear power plants or potential new energy storage requirements); (b) changes resulting from conservation
and demand-side management programs on the timing and use of electric energy; (c) effects on the integration
and reliability of power supply from the increased usage of renewables; (d) changes resulting from a national
energy policy; (e) effects of competition from other electric utilities (including increased competition resulting
from a movement to allow direct access or from mergers, acquisitions and “strategic alliances” of competing
electric and natural gas utilities and from competitors transmitting less expensive electricity from much greater
distances over an interconnected system) and new methods of, and new facilities for, producing low-cost
electricity; (f) the repeal of certain federal statutes that would have the effect of increasing the competitiveness
of many investor-owned utilities; (g) increased competition from independent power producers and marketers,
brokers and federal power marketing agencies; (h) “self-generation” or “distributed generation” (such as
microturbines, fuel cells and solar installations) by industrial and commercial customers and others; (i) issues
relating to the ability to issue tax-exempt obligations, including severe restrictions on the ability to sell to
nongovernmental entities electricity from generation projects and transmission service from transmission line
projects financed with outstanding tax-exempt obligations; (j) effects of inflation on the operating and
maintenance costs of an electric utility and its facilities; (k) changes from projected future load requirements;
(l) increases in costs and uncertain availability of capital; (m) shifts in the availability and relative costs of
different fuels (including the cost of natural gas and nuclear fuel); (n) sudden and dramatic increases in the
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price of energy purchased on the open market that may occur in times of high peak demand in an area of the
country experiencing such high peak demand, such as has occurred in the past in California; (o) inadequate
risk management procedures and practices with respect to, among other things, the purchase and sale of energy
and transmission capacity; (p) other legislative changes, voter initiatives, referenda and statewide propositions;
(q) effects of the changes in the economy, population and demand of customers within a utility’s service area;
(r) effects of possible manipulation of the electric markets; (s) acts of terrorism or cyber-terrorism; (t) natural
disasters or other physical calamities, including, but not limited to, earthquakes, floods and wildfires, and
potential liabilities of electric utilities in connection therewith; (u) changes to the climate; and (v) adverse
impacts to the market for insurance relating to recent wildfires and other calamities, leading to higher costs or
prohibitively expensive coverage, or limited or unavailability of coverage for certain types of risk. Any of
these factors (as well as other factors) could have an adverse effect on the financial condition of any given
electric utility and likely will affect individual utilities in different ways.
CONSTITUTIONAL LIMITATIONS ON TAXES AND FEES
Articles XIIIC and XIIID of the State Constitution
Proposition 218, a State ballot initiative known as the “Right to Vote on Taxes Act,” was approved by
the voters of the State on November 5, 1996. Proposition 218 added Articles XIIIC and XIIID to the State
Constitution. Article XIIID creates additional requirements for the imposition by most local governments
(including the City) of general taxes, special taxes, assessments and “property-related” fees and charges.
Property-related fees include many utility charges such as water rates but Article XIIID explicitly exempts fees
for the provision of electric service from its provisions. Nevertheless, Proposition 218 could indirectly affect
some municipally-owned electric utilities. For example, to the extent that Proposition 218 reduces a city’s
general fund revenues, that city could seek to increase the transfers from its electric utility to its general fund.
For information on the Indenture provisions limiting the City’s authority to transfer moneys from the Light and
Power Fund to the General Fund, see the caption “SECURITY AND SOURCES OF PAYMENT—Transfers
to General Fund” and the discussion of Proposition 26 below.
Article XIIIC expressly extends the people’s initiative power to reduce or repeal previously-
authorized local taxes, assessments and fees and charges. The terms “fees and charges” are not defined in
Article XIIIC, although the State Supreme Court held in Bighorn-Desert View Water Agency v. Verjil, 39
Cal.4th 205 (2006), that the initiative power described in Article XIIIC may apply to a broader category of fees
and charges than the property-related fees and charges governed by Article XIIID. Moreover, in the case of
Bock v. City Council of Lompoc, 109 Cal.App.3d 52 (1980), the Court of Appeal determined that electric rates
are subject to the initiative power. Thus, even electric service charges (which are expressly exempted from the
provisions of Article XIIID) might be subject to the initiative provisions of Article XIIIC, thereby subjecting
such fees and charges imposed by the City to reduction by the electorate. The City believes that even if the
electric rates of the City are subject to the initiative power, under Article XIIIC or otherwise, the electorate of
the City would be precluded from reducing electric rates and charges in a manner adversely affecting the
payment of the 2022 Bonds by virtue of the “impairment of contracts clause” of the United States and State
Constitutions.
Proposition 26 was approved by the voters of the State on November 2, 2010. Proposition 26
amended Articles XIIIA and XIIIC of the State Constitution to impose a two-thirds voter approval requirement
for the imposition of certain fees and charges by the State. It also imposes a majority voter approval
requirement on local governments with respect to fees and charges for general purposes and a two-thirds voter
approval requirement with respect to fees and charges for special purposes. The initiative, according to its
supporters, was intended to prevent the circumvention of tax limitations imposed by the voters pursuant to
Proportion 13, approved in 1978, and other measures, such as Proposition 218, through the use of non-tax fees
and charges. Proposition 26 expressly excludes from its scope “a charge imposed for a specific government
service or product provided directly to the payor that is not provided to those not charged, and which does not
exceed the reasonable costs to the local government of providing the service or product.” The City believes
that the initiative was not intended to and would not apply to Electric System rates so long as such rates do not
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exceed the reasonable costs to the City of providing electric service; however, the City is unable to predict how
Proposition 26 will be interpreted by the courts to apply to the provision of utility services by local
governments such as the electric service provided by the Electric System.
In Citizens for Fair REU Rates v. City of Redding, the Court of Appeal of California, Third Appellate
District, held, in an opinion filed January 20, 2015 and modified February 19, 2015, that a municipal utility’s
recurring budget transfer from its electric utility fund to its general fund, referred to therein as a payment in
lieu of taxes, constitutes a tax under Proposition 26 unless it can be shown that the transferred amount reflects
the reasonable costs borne by the city to provide governmental services to the electric utility. The City of
Redding appealed the decision to the State Supreme Court, which reversed the judgment of the Court of
Appeal on August 27, 2018. The State Supreme Court determined that the budgetary transfer from the City of
Redding electric utility to its general fund is not the type of exaction that is subject to Article XIIIC of the
State Constitution. The State Supreme Court reasoned that it is only the City of Redding electric utility rate,
not the payment in lieu of taxes, that is imposed on customers for electric service. The State Supreme Court
concluded that because the total rate revenue of the electric utility was insufficient to cover the electric utility’s
uncontested operating expenses (other than the payment to the General Fund) in the years at issue, the
challenged rate did not exceed the reasonable costs of providing electric service, and therefore did not
constitute a tax.
The City annually transfers certain amounts from the Light and Power Fund to the City’s General
Fund as discussed under the caption “SECURITY AND SOURCES OF PAYMENT—Transfers to General
Fund,” and sets its rates and its budget with the expectation that certain transfers will be made to the City in
accordance with the restrictions that are set forth in the Indenture. In the event that General Fund transfers are
further restricted, the City does not believe that any such further restrictions would have a material adverse
effect on the financial position of the Electric System. However, any such further restrictions on transfers may
cause the City to evaluate new strategies to generate revenues to fund services provided by the City.
Future Initiatives
Articles XIIIC and XIIID limit the ability of governmental agencies to increase certain fees and
charges. Such articles were adopted pursuant to measures which qualified for the ballot pursuant to the State’s
Constitutional initiative process. While the City believes that Articles XIIIC and XIIID do not affect the
Electric System’s rates and charges so long as the rates do not exceed the reasonable costs to the City of
providing the utility services, from time to time other initiative measures could be adopted by State voters.
The adoption of any such initiatives might place limitations on the ability of the City and its Electric System to
increase revenues.
APPROVAL OF LEGAL PROCEEDINGS
The valid, legal and binding nature of the 2022 Bonds is subject to the approval of Stradling Yocca
Carlson & Rauth, a Professional Corporation, acting as Bond Counsel. The form of such legal opinion is
attached hereto as Appendix C, and such legal opinion will be attached to each 2022 Bond. Certain legal
matters will be passed upon for the City by Stradling Yocca Carlson & Rauth, a Professional Corporation, as
Disclosure Counsel, and by the City Attorney, for the Underwriter by its counsel, Chapman and Cutler LLP,
and for the Trustee by its counsel.
LITIGATION
At the time of delivery of and payment for the 2022 Bonds, the City will certify substantially to the
effect that there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any
court, regulatory agency, public board or body, pending or, to the knowledge of the City, threatened against the
City affecting the existence of the City or the titles of its directors or officers to their respective offices or
seeking to restrain or to enjoin the sale or delivery of the 2022 Bonds, the application of the proceeds thereof in
accordance with the Indenture, or in any way contesting or affecting the validity or enforceability of the 2022
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Bonds, the Indenture, or any action of the City contemplated by any of said documents, or in any way
contesting the completeness or accuracy of this Official Statement or any amendment or supplement thereto, or
contesting the powers of the City or its authority with respect to the 2022 Bonds, or any action of the City
contemplated by any of said documents, nor to the knowledge of the City, is there any basis therefor.
TAX MATTERS
In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach,
California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the
accuracy of certain representations and compliance with certain covenants and requirements described herein,
interest (and original issue discount) on the 2022 Bonds is excluded from gross income for federal income tax
purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax
imposed on individuals. In the further opinion of Bond Counsel, interest (and original issue discount) on the
2022 Bonds is exempt from State of California personal income tax.
Bond Counsel’s opinion as to the exclusion from gross income for federal income tax purposes of
interest (and original issue discount) on the 2022 Bonds is based upon certain representations of fact and
certifications made by the City and others and is subject to the condition that the City comply with all
requirements of the Internal Revenue Code of 1986 (the “Code”) that must be satisfied subsequent to the
issuance of the 2022 Bonds to assure that interest (and original issue discount) on the 2022 Bonds will not
become includable in gross income for federal income tax purposes. Failure to comply with such requirements
of the Code might cause interest (and original issue discount) on the 2022 Bonds to be included in gross
income for federal income tax purposes retroactive to the date of issuance of the 2022 Bonds. The City has
covenanted to comply with all such requirements.
In the opinion of Bond Counsel, the difference between the issue price of a 2022 Bond (the first price
at which a substantial amount of the 2022 Bonds of a maturity is to be sold to the public) and the stated
redemption price at maturity of such 2022 Bond constitutes original issue discount. Original issue discount
accrues under a constant yield method, and original issue discount will accrue to a Beneficial Owner before
receipt of cash attributable to such excludable income. The amount of original issue discount deemed received
by a Beneficial Owner will increase the Beneficial Owner’s basis in the applicable 2022 Bond. The amount of
original issue discount that accrues to the Beneficial Owner of a 2022 Bond is excluded from the gross income
of such Beneficial Owner for federal income tax purposes, is not an item of tax preference for purposes of the
federal alternative minimum tax imposed on individuals, and is exempt from State of California personal
income tax.
The amount by which a 2022 Bondowner’s original basis for determining loss on sale or exchange in
the applicable 2022 Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an
earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171 of the
Code; such amortizable bond premium reduces the 2022 Bondowner’s basis in the applicable 2022 Bond (and
the amount of tax-exempt interest received with respect to the 2022 Bonds), and is not deductible for federal
income tax purposes. The basis reduction as a result of the amortization of bond premium may result in a 2022
Bondowner realizing a taxable gain when a 2022 Bond is sold by the Owner for an amount equal to or less
(under certain circumstances) than the original cost of the 2022 Bond to the Owner. Purchasers of the 2022
Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of
amortizable bond premium.
The Internal Revenue Service (the “IRS”) has initiated an expanded program for the auditing of
tax-exempt bond issues, including both random and targeted audits. It is possible that the 2022 Bonds will be
selected for audit by the IRS. It is also possible that the market value of the 2022 Bonds might be affected as a
result of such an audit of the 2022 Bonds (or by an audit of similar municipal obligations). No assurance can
be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not
change the Code (or interpretation thereof) subsequent to the issuance of the 2022 Bonds to the extent that it
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adversely affects the exclusion from gross income of interest (and original issue discount) on the 2022 Bonds
or their market value.
SUBSEQUENT TO THE ISSUANCE OF THE 2022 BONDS THERE MIGHT BE FEDERAL,
STATE OR LOCAL STATUTORY CHANGES (OR JUDICIAL OR REGULATORY CHANGES TO OR
INTERPRETATIONS OF FEDERAL, STATE OR LOCAL LAW) THAT AFFECT THE FEDERAL, STATE
OR LOCAL TAX TREATMENT OF THE 2022 BONDS, INCLUDING THE IMPOSITION OF
ADDITIONAL FEDERAL INCOME OR STATE TAXES ON OWNERS OF TAX-EXEMPT STATE OR
LOCAL OBLIGATIONS, SUCH AS THE 2022 BONDS. THESE CHANGES COULD ADVERSELY
AFFECT THE MARKET VALUE OR LIQUIDITY OF THE 2022 BONDS. NO ASSURANCE CAN BE
GIVEN THAT SUBSEQUENT TO THE ISSUANCE OF THE 2022 BONDS STATUTORY CHANGES
WILL NOT BE INTRODUCED OR ENACTED OR JUDICIAL OR REGULATORY INTERPRETATIONS
WILL NOT OCCUR HAVING THE EFFECTS DESCRIBED ABOVE. BEFORE PURCHASING ANY OF
THE 2022 BONDS, ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS
REGARDING POSSIBLE STATUTORY CHANGES OR JUDICIAL OR REGULATORY CHANGES OR
INTERPRETATIONS, AND THEIR COLLATERAL TAX CONSEQUENCES RELATING TO THE 2022
BONDS.
Bond Counsel’s opinions with respect to the 2022 Bonds may be affected by actions taken (or not
taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to
determine, or to inform any person, whether any such actions or events are taken or do occur. The Indenture
and the Tax Certificate relating to the 2022 Bonds permits certain actions to be taken or to be omitted if a
favorable opinion of Bond Counsel is provided with respect thereto. Bond Counsel expresses no opinion as to
the effect on the exclusion from gross income of interest (and original issue discount) for federal income tax
purposes with respect to any 2022 Bond if any such action is taken or omitted based upon the advice of
counsel other than Stradling Yocca Carlson & Rauth, a Professional Corporation.
Although Bond Counsel has rendered an opinion that interest (and original issue discount) on the 2022
Bonds is excluded from gross income for federal income tax purposes provided that the City continues to
comply with certain requirements of the Code, the ownership of the 2022 Bonds and the accrual or receipt of
interest (and original issue discount) on the 2022 Bonds may otherwise affect the tax liability of certain
persons. Bond Counsel expresses no opinion regarding any such tax consequences. Accordingly, before
purchasing any of the 2022 Bonds, all potential purchasers should consult their tax advisors with respect to
collateral tax consequences relating to the 2022 Bonds.
Should interest (and original issue discount) on the 2022 Bonds become includable in gross income
for federal income tax purposes, the 2022 Bonds are not subject to early redemption and will remain
outstanding until maturity or until redeemed in accordance with the Indenture.
Copies of the proposed form of the opinion of Bond Counsel is attached hereto as Appendix C.
RATINGS
S&P Global Ratings (“S&P”) and Moody’s Ratings, Inc. (“Moody’s”) have assigned the 2022 Bonds
the ratings of “BBB+” and “Baa1”, respectively. S&P’s rating outlook with respect to the 2022 Bonds is
“stable.” Moody’s rating outlook with respect to the 2022 Bonds is “stable.” There is no assurance that any
credit rating that is given to the 2022 Bonds will be maintained for any period of time or that a rating may not
be lowered or withdrawn entirely by the applicable rating agency if, in the judgment of such rating agency,
circumstances so warrant. Any downward revision or withdrawal of a rating may have an adverse effect on the
market price of the 2022 Bonds. The ratings reflect only the views of S&P and Moody’s, respectively, and an
explanation of the significance of such ratings may be obtained from S&P or Moody’s, as applicable.
Generally, a rating agency bases its ratings on the information and materials that are furnished to it (which may
include information and material from the City that is not included in this Official Statement) and on
investigations, studies and assumptions of its own.
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The City will covenant in a Continuing Disclosure Agreement to file notices of any rating changes on
the 2022 Bonds with EMMA. See the caption “CONTINUING DISCLOSURE” and Appendix E.
Notwithstanding such covenant, information relating to rating changes on the 2022 Bonds may be publicly
available from the rating agencies prior to such information being provided to the City and prior to the date by
which the City is obligated to file a notice of rating change. Purchasers of the 2022 Bonds are directed to the
rating agencies and their respective websites and official media outlets for the most current ratings with respect
to the 2022 Bonds after the initial issuance of the 2022 Bonds.
In providing a rating on the 2022 Bonds, S&P or Moody’s may have performed independent
calculations of debt service coverage ratios using their own internal formulas and methodology, which may not
reflect the provisions of the Indenture. The City makes no representations as to any such calculations, and
such calculations should not be construed as a representation by the City as to past or future compliance with
any financial covenants, the availability of particular revenues for the payment of debt service or for any other
purpose.
MUNICIPAL ADVISOR
The City has retained BLX Group LLC as municipal advisor (the “Municipal Advisor”) in
connection with the issuance of the 2022 Bonds. The Municipal Advisor has not undertaken to make an
independent verification or to assume responsibility for the accuracy, completeness, or fairness of the
information contained in this Official Statement. The Municipal Advisor is an independent advisory firm and
is not engaged in the business of underwriting, trading or distributing municipal or other public securities.
UNDERWRITING
The 2022 Bonds will be purchased by Goldman Sachs & Co. LLC (the “Underwriter”), pursuant to a
Forward Delivery Purchase Contract, dated December 7, 2021 (the “Purchase Contract”), by and between the
City and the Underwriter. Under the Purchase Contract, the Underwriter has agreed, subject to the satisfaction
of certain terms and conditions, certain of which are described under the caption “FORWARD DELIVERY
OF THE 2022 BONDS,” to purchase all, but not less than all, of the 2022 Bonds on or about May 5, 2022 (the
“Settlement Date”) for an aggregate purchase price of $62,006,024.62 (representing the principal amount of
the 2022 Bonds, less an Underwriter’s discount of $243,932.48, plus a net original issue premium of
$10,179,957.10). The Purchase Contract provides that the Underwriter will purchase all of the 2022 Bonds if
any are purchased, the obligation to make such a purchase being subject to certain terms and conditions set
forth in the Purchase Contract, the approval of certain legal matters by counsel and certain other conditions.
The initial public offering prices stated on the inside cover page of this Official Statement may be
changed from time to time by the Underwriter. The Underwriter may offer and sell the 2022 Bonds to certain
dealers (including dealers depositing 2022 Bonds into investment trusts), dealer banks, banks acting as agents
and others at prices lower than said public offering prices.
The Underwriter and its affiliates are full service financial institutions engaged in various activities,
which may include sales and trading, commercial and investment banking, advisory, investment management,
investment research, principal investment, hedging, market making, brokerage and other financial and non-
financial activities and services. The Underwriter has provided, and may in the future provide, a variety of
these services to the City and to persons and entities with relationships with the City, for which they received
or will receive customary fees and expenses.
In the ordinary course of their various business activities, the Underwriter and its affiliates, officers,
directors and employees may purchase, sell or hold a broad array of investments and actively trade securities,
derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own
account and for the accounts of their customers, and such investment and trading activities may involve or
relate to assets, securities and/or instruments of the City (directly, as collateral securing other obligations or
otherwise) and/or persons and entities with relationships with the City. The Underwriter and its affiliates may
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also communicate independent investment recommendations, market color or trading ideas and/or publish or
express independent research views in respect of such assets, securities or instruments and may at any time
hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities
and instruments.
FORWARD DELIVERY OF THE 2022 BONDS
General
The Underwriter has agreed to purchase the 2022 Bonds, subject to the satisfaction of the terms and
conditions of a Forward Delivery Purchase Contract, certain of which are described in the following
subsections.
Certain Terms Concerning Forward Delivery
Under the Forward Delivery Purchase Contract, the Underwriters are not required to purchase the
2022 Bonds if, among other conditions, (1) there has been a Change in Law (as defined below); (2) the House
of Representatives or the Senate of the Congress of the United States, or a committee of either, shall have
pending before it, or shall have passed or recommended favorably, legislation which, if enacted in the form as
introduced or as amended, would have the purpose or effect of imposing federal income taxation upon
revenues or other income of the general character to be derived by the Electric System or by any similar body
or upon interest received on the 2022 Bonds, or obligations of the general character of the 2022 Bonds, or
causing interest on the 2022 Bonds, or obligations of the general character of the 2022 Bonds, to be includable
in gross income for purposes of federal income taxation; (3) any legislation, regulation, ruling, order, release,
court decision or judgment or action by the U.S. Department of the Treasury, the Internal Revenue Service, or
any agency of the State is either enacted, issued, effective, or adopted, that would have the purpose or effect of
imposing federal income taxation upon revenues or other income of the general character to be derived by the
Electric System or by any similar body or upon interest received on the 2022 Bonds, or obligations of the
general character of the 2022 Bonds, or causing interest on the 2022 Bonds, or obligations of the general
character of the 2022 Bonds, to be includable in gross income for purposes of federal and State income
taxation ; (4) legislation shall be enacted, or a decision by a court of the United States shall be rendered, or
any action shall be taken by, or on behalf of, the Securities Exchange Commission which has the effect of
requiring the 2022 Bonds to be registered under the Securities Act of 1933, as amended, or requires the
qualification of the Indenture under the Trust Indenture Act of 1939, as amended; (5) a general banking
moratorium has been declared by federal, New York or California authorities and it is in effect as of the
Settlement Date; (6) an order, decree or injunction of any court of competent jurisdiction shall be rendered, or
any order, ruling , regulation or official statement by the U.S. Securities and Exchange Commission shall be
issued which has the effect of making the issuance and sale of the 2022 Bonds to be in violation of the federal
securities laws, as amended; (7) this Official Statement, as of its date and as of the Settlement Date, contained
or contains any untrue statement of a material fact or omitted or omits to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading; (8) an event of default, technical or otherwise, has occurred and is continuing on the
Settlement Date under the Indenture; (9) evidence of then current ratings on the 2022 Bonds from S&P and
Moody’s as reflected in the Updated Official Statement is not delivered; and (10) there has been a material
adverse change in the business, properties, assets, results of operations, financial position or affairs of the
Electric System or the City (and affecting the Electric System) that, in the reasonable judgment of the
Underwriter, materially adversely affects the market price or the marketability of the 2022 Bonds.
A “Change in Law” means (i) any change in or addition to applicable federal or State law, whether
statutory or as interpreted by the courts or by federal or State agencies, including any changes in or new rules,
regulations or other pronouncements or interpretations by federal or State agencies, (ii) any legislation enacted
by the Congress of the United States (if such enacted legislation has an effective date that is on or before the
date of Settlement), (iii) any law, rule or regulation enacted by any governmental body, department or agency
(if such enacted law, rule or regulation has an effective date that is on or before the date of Settlement) or
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(iv) any judgment, ruling or order issued by any court or administrative body, which in any case would, (A) as
to the Underwriter, prohibit the Underwriter from completing the underwriting of the 2022 Bonds or selling
the Bonds or beneficial ownership interests therein to the public or, (B) as to the City, would make the
completion of the issuance, sale or delivery of the 2022 Bonds illegal.
Certain Considerations
Issuance and delivery of the 2022 Bonds will be dependent on receipt by the City of the opinion of
Bond Counsel to the effect set forth in Appendix C on the Settlement Date and of certain other documents
required by the Forward Delivery Purchase Contract, and payment of the purchase price by the Underwriter in
accordance with the Forward Delivery Purchase Contract on the Settlement Date.
Bond Counsel could be prevented from rending its opinion on the Settlement Date with respect to the
2022 Bonds as a result of (i) changes or proposed changes, prior to the Settlement Date, in federal or California
state laws, court decisions, regulations or proposed regulations, or rulings of administrative agencies or (ii) the
failure of the City to provide closing documents, satisfactory to Bond Counsel, of the type customarily
required in connection with the issuance of tax-exempt bonds, such as certificates to the effect that the
proceedings of the City with respect to the issuance of the 2022 Bonds have not been amended or repealed, in a
manner detrimental to holders of the 2022 Bonds, by executive, legislative or administrative action.
Pursuant to the Forward Delivery Purchase Contract, the City agreed to deliver this Official
Statement, which has been updated since the Official Statement delivered on December 7, 2021, as
supplemented by a supplement to the Official Statement dated January 7, 2022, in connection with the sale of
the 2021A Bonds and the 2022 Bonds, and to provide a reasonable number of copies of this Official Statement,
if any, to the Underwriter. With this exception, the City and the Underwriter have not agreed to, nor are they
obligated to provide updates to the information contained in this Official Statement during the period of time
between the date of sale of the 2022 Bonds and the Settlement Date.
Rating Risk
S&P and Moody’s have each issued their rating for the 2022 Bonds. See “RATINGS” above. No
assurance can be given that at the Settlement Date of the 2022 Bonds, such ratings will continue to be in effect.
The Underwriter may not terminate its obligation to purchase the 2022 Bonds unless evidence of then current
ratings on the 2022 Bonds from S&P and Moody’s as reflected in the Updated Official Statement is not
delivered. The ratings in effect as of the Settlement Date need not be the same ratings that were expected as of
the issuance of the 2022 Bonds.
Secondary Market Risk
The Underwriter is not obligated to make a secondary market in the 2022 Bonds and no assurance can
be given that a secondary market will exist for the 2022 Bonds.
Market Value Risk
The market value of the 2022 Bonds as of the Settlement Date may be affected by a variety of factors
including, without limitation, general market conditions, the ratings then assigned to the 2022 Bonds, the
financial condition and business operations of the City and federal and state income tax and other laws. Thus,
the market value of the 2022 Bonds on the Settlement Date could be greater or less than the agreed purchase
price to be paid by the initial purchasers of the 2022 Bonds, and that difference could be substantial. Neither
the City nor the Underwriter make any representation as to the market value of the 2022 Bonds as of the
Settlement Date.
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Federal Tax Proposals
The Forward Delivery Purchase Contract obligates the City to deliver and the Underwriter to acquire
the 2022 Bonds if, among other things, the City delivers an opinion of Bond Counsel substantially in the form
set forth in Appendix C hereto to the effect that the interest on the 2022 Bonds is excluded from gross income
for federal income tax purposes under Section 103 of the Code. It is possible that certain bills could be
introduced (or that bills previously introduced could be amended) in the U.S. Congress that, if adopted, would
reform the system of federal taxation. Those bills could (i) eliminate the tax exemption granted under Section
103 of the Code to interest payable on “state or local bonds” such as the 2022 Bonds, or (ii) diminish the value
of the federal tax exemption granted interest on such bonds under the current system of federal income
taxation. If, however, legislation only diminishes the value of the tax exemption, and the City satisfies the
requirements for the delivery of the 2022 Bonds set forth in the Forward Delivery Purchase Contract, then the
Underwriter would still be required to accept delivery of the 2022 Bonds at the Settlement Date. Prospective
purchasers of the 2022 Bonds are encouraged to consult their tax advisors regarding the likelihood that such
bills would be introduced or amended or enacted and the consequences of such enactment to the purchasers.
CONTINUING DISCLOSURE
The City will covenant in a Continuing Disclosure Agreement, dated the date of delivery of the 2022
Bonds (the “Continuing Disclosure Agreement”), by and between the City and The Bank of New York
Mellon Trust Company, N.A., as dissemination agent (the “Dissemination Agent”) for the benefit of the
holders and Beneficial Owners of the 2022 Bonds to provide certain financial information and operating data
relating to the City by not later than April 1 following the end of the City’s Fiscal Year (currently its Fiscal
Year ends on June 30) (the “Annual Report”), commencing on April 1, 2023 with the report for the Fiscal
Year ended June 30, 2022, and to provide notices of the occurrence of certain enumerated events. The Annual
Report and the notices of enumerated events will be filed by the City with EMMA, which is maintained on the
Internet at http://emma.msrb.org/.
The specific nature of the information to be contained in the Annual Report and the notices of
enumerated events is set forth in Appendix E. These covenants have been made in order to assist the
Underwriter in complying with subsection (b)(5) of Rule 15c2-12 adopted by the Securities and Exchange
Commission (the “Rule”).
The City has not failed to comply in all material respects with its continuing disclosure undertakings
in the past five years. In order to ensure compliance with its continuing disclosure undertakings under the
Rule in the future, the City has appointed the Dissemination Agent to coordinate, on behalf of the City, the
preparation and filing of Annual Reports by the City.
FINANCIAL INTERESTS
The fees being paid to the Underwriter, Bond Counsel and Disclosure Counsel are contingent upon the
issuance and delivery of the 2022 Bonds.
MISCELLANEOUS
Insofar as any statements made in this Official Statement involve matters of opinion or of estimates,
whether or not expressly stated, they are set forth as such and not as representations of fact. No representation
is made that any of such statements made will be realized. Neither this Official Statement nor any statement
which may have been made verbally or in writing is to be construed as a contract with the Owners of the 2022
Bonds.
The execution and delivery of this Official Statement have been duly authorized by the City.
CITY OF VERNON
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By /s/ Carlos R. Fandino, Jr.
City Administrator
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APPENDIX A
FINANCIAL STATEMENTS
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APPENDIX B
SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE
This Appendix includes summaries of certain provisions of the Indenture, which are in addition and
complementary to the summaries found under “INTRODUCTION,” “THE 2022 BONDS,” “PLAN OF
FINANCE” and “SECURITY AND SOURCES OF PAYMENT” in the Official Statement. The following
summaries are qualified in their entirety by reference to the Indenture, a copy of which can be obtained from
the City.
The 2022 Bonds are issued under the Indenture, dated as of September 1, 2008, as amended and
supplemented (the “Indenture”), including as supplemented by the Seventh Supplemental Indenture dated as of
December 1, 2021 (the “Seventh Supplemental Indenture”). The Indenture, which is summarized under the
caption “THE MASTER INDENTURE,” includes definitions of terms and other provisions specific to the
2022 Bonds and the provisions applicable to all of the Bonds. The terms of the Seventh Supplemental
Indenture are summarized under the caption “THE SEVENTH SUPPLEMENTAL INDENTURE” below and
include provisions specific to the 2022 Bonds.
MASTER INDENTURE
DEFINITIONS AND AUTHORITY
Definitions. Unless the context otherwise requires, the following terms, for all purposes of the Master
Indenture and, unless otherwise provided therein with respect to such Supplemental Indenture or any Series of
Bonds authorized by such Supplemental Indenture, any Supplemental Indenture, have the meanings set forth
below:
“Accountant’s Certificate” means a certificate signed by an Independent Certified Public Accountant
selected by the City.
“Accreted Value” means, with respect to any Capital Appreciation Obligation and as of any date, the
Initial Amount thereof plus the interest accrued thereon from its delivery date, compounded at the approximate
interest rate with respect to such Capital Appreciation Obligation specified in or pursuant to the Issuing
Instrument authorizing the issuance of such Capital Appreciation Obligation on each date specified therein.
The applicable Accreted Value at any date will be the amount set forth in the Accreted Value Table as of such
date, if such date is a compounding date, and if not, will be determined by straight-line interpolation with
reference to such Accreted Value Table.
“Accreted Value Table” means, with respect to Capital Appreciation Obligations, the table
denominated as such in, and to which reference is made in, the Issuing Instrument authorizing the issuance of
such Capital Appreciation Obligations.
“Additional Bonds” means Bonds issued in accordance with the terms and conditions of the Indenture
for the purposes set forth in the Indenture.
“Additional Parity Obligations” means Parity Obligations, including Additional Bonds, issued for the
purposes set forth in the Indenture and satisfying the conditions set forth in the Indenture.
“Adjusted Debt Service” means, for any period of time, the Debt Service for such period minus the
sum of the amount of such Debt Service with respect to Outstanding Parity Obligations to be paid during such
period from the proceeds of Parity Obligations, Subordinate Obligations or other funds as set forth in a
certificate of the City.
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“Adjusted Net Revenues” means, with respect to a certificate to be delivered in connection with
Additional Parity Obligations pursuant to the Indenture, for any Calculation Period, as calculated by the City
or an Independent Engineer, the Adjusted Revenues for such Calculation Period less the Operation and
Maintenance Expenses for such Calculation Period, plus at the option of the City, any or all of the following:
(i) an allowance for any estimated increase in Revenues from any additions or improvements to or extensions
of the Electric System, made but not in service during the applicable Calculation Period or to be made with the
proceeds of any Additional Parity Obligations with respect to which such certificate relates, with the proceeds
of other Obligations theretofore issued by the City and available for such purpose or with other available funds
of the City reserved by the City for such purpose, such allowance to be in an amount equal to the estimated
additional average annual Net Revenues to be derived from such additions, improvements and extensions
during the twelve month period after placing each such addition, improvement or extension in service, all as
shown by a certificate of the City or an Independent Engineer; and (ii) an allowance for any increases in rates
and charges for the Electric Service of the Electric System which have been approved by the City Council but
which during all or any part of the applicable Calculation Period were not in effect, such allowance to be in an
amount equal to 75% of the amount by which the Revenues for the applicable Calculation Period would have
increased if such increase in rates and charges had been in effect for that portion of such Calculation Period
during which such increase was not in effect.
“Adjusted Revenues” means, for any period of time, the Revenues for such period less the amount of
such Revenues which have been deposited in the Expense Stabilization Fund during such period plus the
amount of withdrawals during such period from the Expense Stabilization Fund.
“Advance Refunded Municipal Securities” means any bonds or other obligations of any state of the
United States of America or of any agency, instrumentality or local government unit of any such state:
(i) which are rated “Aaa” by Moody’s and “AAA” by S&P (provided, however, if the issue is only rated by
S&P (i.e., there is no Moody’s rating), then the pre-refunded bonds must have been pre-refunded with cash,
direct U.S. or U.S. guaranteed obligations, or “AAA” rated pre-refunded municipals to satisfy the foregoing
condition); (ii) which are not callable prior to maturity or as to which irrevocable instructions have been given
to the trustee, fiscal agent or other fiduciary for such bonds or other obligations by the obligor to give due
notice of redemption and to call such bonds or other obligations for redemption on the date or dates specified
in such instructions; (iii) which are secured as to principal and interest and redemption premium, if any, by a
fund consisting only of cash or bonds or other obligations of the character described in clause (i) of the
definition of Defeasance Securities which fund may be applied only to the payment of such principal of and
interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates
thereof or the redemption date or dates specified in the irrevocable instructions referred to in clause (ii) above,
as appropriate; and (iv) as to which the principal of and interest on the bonds and obligations of the character
described in clause (i) of the definition of Defeasance Securities which have been deposited in such fund,
along with any cash on deposit in such fund, have been verified by an Accountant’s Certificate as being
sufficient to pay principal of and interest and redemption premium, if any, on such bonds or other obligations
on the maturity date or dates thereof or on the redemption date or dates specified in the irrevocable instructions
referred to in clause (ii) above, as applicable.
“Aggregate Adjusted Annual Debt Service” means for any Fiscal Year the aggregate amount of
Adjusted Debt Service on all Outstanding Parity Obligations payable in such Fiscal Year. For purposes of
calculating Aggregate Adjusted Annual Debt Service, the determination of Debt Service on the Outstanding
Parity Obligations coming due in each Fiscal Year will be subject to the Debt Service Adjustments and
Assumptions.
“Applicable Parity Obligations” means, with respect to a certificate to be delivered in connection with
Additional Parity Obligations pursuant to the Indenture and as of the date of such certificate, all of the Parity
Obligations Outstanding on such date plus the Additional Parity Obligations proposed to be issued.
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“Authorized Denominations” means, with respect to Bonds of any Series, the denomination or
denominations designated as such in the Supplemental Indenture authorizing such Bonds.
“Authorized City Representative” means the City Administrator of the City, and any other officer of
the City duly authorized to act as an Authorized City Representative for purposes of the Indenture by the City
Council or written authorization of the City Administrator of the City.
“Balloon Indebtedness” means, with respect to any Series of Obligations 25% or more of the principal
of which matures on the same date or within a 12-month period (with Sinking Fund Installments on Term
Obligations deemed to be payments of matured principal), that portion of such Series of Obligations which
matures on such date or within such 12-month period. For purposes of the foregoing definition, the principal
amount maturing on any date will be reduced by the amount of such indebtedness which is required, by the
documents governing such indebtedness, to be amortized by prepayment or redemption prior to its stated
maturity date.
“Beneficial Owner” means, with respect any Book-Entry Bond, the beneficial owner of such Bond as
determined in accordance with the applicable rules of the Securities Depository for such Book-Entry Bonds.
“Bond” means any of the City of Vernon Electric System Revenue Bonds authorized pursuant to the
Indenture and a Supplemental Indenture.
“Bond Counsel” means an attorney or firm of attorneys of recognized national standing in the field of
law relating to municipal securities and to exclusion of interest thereon from income for federal income tax
purposes selected by the City.
“Bond Debt Service” means, for any period of time, the sum of: (i) the interest payable during such
period on all Outstanding Bonds, assuming that all Outstanding Bonds which are Serial Obligations are retired
as scheduled and that all Outstanding Bonds which are Term Obligations are redeemed or paid from Sinking
Fund Installments as scheduled; (ii) that portion of the principal amount of all Outstanding Bonds which are
Serial Obligations maturing on each principal payment date during such period, including the Final
Compounded Amount of any Bonds which are Capital Appreciation Obligations and Serial Obligations; and
(iii) that portion of the principal amount of all Outstanding Bonds which are Term Obligations required to be
redeemed or paid from Sinking Fund Installments during such period (together with the redemption premiums,
if any, thereon).
“Bond Ordinance” means the City of Vernon Municipal Facilities Revenue Bond Law, enacted as
Ordinance No. 1004 of the City (codified as Article XI of the City Code of the City of Vernon).
“Bond Register” means the registration books for the ownership of Bonds maintained by the Trustee
pursuant to the Indenture.
“Bondowner” or “Owner” means, with respect to a Bond, the registered owner of such Bond as set
forth in the Bond Register.
“Book-Entry Bonds” means Bonds registered in the name of a nominee of DTC or any successor
Securities Depository for the Bonds, or a nominee thereof, as the registered owner thereof pursuant to the
terms and provisions of the Indenture.
“Budget” means, as of any date, the budget for the Electric System prepared by the City pursuant to
the Indenture in effect as of such date.
“Business Day” means, with respect to each Series of Bonds, unless otherwise provided with respect
to a Series of Bonds in the Supplemental Indenture authorizing the issuance of such Series, any day of the year
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other than: (i) a Saturday; (ii) a Sunday; (iii) any day which is in Los Angeles, California or New York, New
York a legal holiday or a day on which banking institutions are authorized or required by law or other
government action to close; and (iv) any day on which the banks are authorized or required by law or other
government action to close in the State of New York or State of California or any city in which the Principal
Office of any Paying Agent or any Credit Provider for such Series of Bonds is located.
“Calculation Period” means, with respect to any certificate to be provided pursuant to the Indenture,
any twelve consecutive month period within the eighteen consecutive months ending immediately prior to the
issuance of the Additional Parity Obligations to which such certificate relates.
“Capital Appreciation Obligations” mean any Obligations the interest on which is compounded and
not scheduled to be paid until the maturity or prior redemption of such Obligations.
“Capital Improvement” means, to the extent chargeable to a capital account of the Electric System, or
otherwise eligible for amortization, under Generally Accepted Accounting Principles any land, improvement,
facility, equipment and other property of any nature whatsoever which is used in the Electric System including
but not limited to: (i) any addition, betterment, replacement, renewal, extension or improvement of or to the
Electric System, including, without limitation, capacity rights in electric generation resources, rights to the
transmission capability of electric transmission resources, acquisition of emission credits or other
environmental assets for facilities of the Electric System, land or any interests therein; and (ii) capital costs for
the extension, reinforcement, enlargement or other improvement of facilities or property, or the acquisition of
interests therein, not included as part of the Electric System, determined by the City to be necessary or
convenient in connection with the utilization of the Electric System.
“Charter” means the Charter of the City of Vernon.
“City” means the City of Vernon, California and its successors.
“City Administrative Code” means the Code of the City of Vernon.
“City Council” means the City Council of the City established pursuant to the Charter.
“Code” means the Internal Revenue Code of 1986, as amended from time to time. Each reference to a
section of the Code in the Indenture will be deemed to include the applicable United States Treasury
Regulations thereunder and also includes all amendments and successor provisions unless the context clearly
requires otherwise.
“Collateral Requirement” means, with respect to a Qualified Swap Agreement, that such Qualified
Swap Agreement includes provisions to the effect that: (i) if the counterparty’s (or, if applicable, the
counterparty’s guarantor’s) ratings fall below “Aa” by Moody’s or “AA” by S&P, or are suspended or
withdrawn, the counterparty will provide collateral in the form of cash or Defeasance Securities, or a
combination thereof; (ii) the collateral is to be held by the City or a third party custodian acceptable to the
City; (iii) the City has a perfected security interest in the collateral; (iv) the amount of the collateral is at least
equal to 100% of the amount, if any, that the counterparty would be obligated to pay the City in the event of
the early termination of the transactions under the Qualified Swap Agreement; (v) there may be deducted from
the amount of the collateral a threshold amount of not more than $1,000,000, except that if the counterparty’s
(or, if applicable, the counterparty’s guarantor’s) ratings fall below “A” by Moody’s or “A” by S&P, or are
suspended or withdrawn, the threshold amount will be zero; and (vi) the amount of the required collateral and
the value of the collateral posted will be valued no less frequently than monthly.
“Commercial Paper Program” means a program of short-term Obligations having the characteristics of
commercial paper in that such Obligations have a stated maturity not later than 270 days from their date of
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issue and that maturing Obligations of such program may be paid with the proceeds of renewal short-term
Obligations.
“Cost” means, with respect to any Capital Improvement, to the extent permitted under the Bond
Ordinance, all costs and expenses of planning, designing, acquiring, constructing, installing and financing such
Capital Improvement, placing such Capital Improvement in operation, disposal of such Capital Improvement,
and obtaining governmental approvals, certificates, permits and licenses with respect to the applicable Capital
Improvement paid or incurred by the City. Payment of Cost does include the reimbursement to the City for
any of the costs included in the definition of Cost paid by the City and not previously reimbursed to the City
and which are not to be reimbursed from contributions in aid of construction. The term Cost includes, but is
not limited to: (i) costs of preliminary investigation and development, the performance or acquisition of
feasibility and planning studies, and the securing of regulatory approvals, as well as costs for land and land
rights, engineering and contractors’ fees, labor, materials, equipment, utility services and supplies, legal fees
and financing expenses; (ii) working capital and reserves therefor in such amounts as determined by the City;
(iii) interest accruing in whole or in part on Parity Obligations prior to and during the acquisition, construction
and installation of a Capital Improvement, or any portion thereof, and for such additional period as the City
may determine; (iv) the deposit or deposits from the proceeds of the Bonds in any funds or accounts required
by the Indenture or any Supplemental Indenture; (v) the payment of principal, premium, if any, and interest
when due (whether at the maturity of principal or at the due date of interest or upon redemption or otherwise)
of any note or other evidence of indebtedness the proceeds of which were applied to any of the costs of the
applicable Capital Improvement described in the definition of Cost; (vi) training and testing costs which are
properly allocable to the acquisition, placing in operation, or construction of a Capital Improvement; (vii) all
costs of insurance applicable to the period of the acquisition, construction, installation and placing the Capital
Improvement in operation; (viii) all costs relating to injury and damage claims arising out of the acquisition,
construction, installation and placing the Capital Improvement in operation less proceeds of insurance;
(ix) legally required or permitted federal, state and local taxes and payments in lieu of taxes applicable to the
acquisition, construction, installation and placing the Capital Improvement in operation, or any portion thereof;
(x) amounts due the United States of America as rebate of investment earnings with respect to the proceeds of
Parity Obligations the proceeds of which were applied, in whole or in part, to the Capital Improvement or as
penalties in lieu thereof; (xi) amounts payable with respect to capital costs for the expansion, reinforcement,
enlargement or other improvement of facilities, whether or not such facilities constitute a part of the Electric
System, determined by the City to be necessary in connection with the utilization of the applicable Capital
Improvement and the costs associated with the removal from service or reductions in service of any facilities
as a result of the expansion, reinforcement, enlargement or other improvement of such facilities or the
acquisition, construction, installation or placing in service of the Capital Improvement; (xii) Costs of Issuance
of any Parity Obligations the proceeds of which were applied, in whole or in part, to the Capital Improvement;
(xiii) fees and expenses pursuant to any lending or credit facility or agreement applicable to the period of the
acquisition, construction, installation and placing in operation the Capital Improvement; and (xiv) to the extent
chargeable to a capital account of the Electric System under Generally Accepted Accounting Principles, all
other costs incurred by the City, properly allocable to the acquisition, construction, or installation of the
Capital Improvement, or any portion thereof, or the placing of the Capital Improvement or any portion thereof
in operation.
“Costs of Issuance” means, to the extent permitted by the Bond Ordinance, all items of expense
directly or indirectly payable by or reimbursable to the City and related to the original authorization, execution,
sale and delivery of Parity Obligations, including but not limited to advertising and printing costs, costs of
preparation and reproduction of documents, including disclosure documents and documents relating to the sale
of such Parity Obligations, initial fees and charges (including counsel fees) of any fiscal agent, any paying
agent and any Credit Provider, legal fees and charges, financial advisor fees and expenses, fees and expenses
of other consultants and professionals, rating agency fees, fees and charges for preparation, execution,
transportation and safekeeping of Parity Obligations and any other cost, charge or fee in connection with the
authorization, issuance, sale or original delivery of Parity Obligations.
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“Credit Provider” means any municipal bond insurance company, bank or other financial institution or
organization which is performing in all material respects its obligations under any Credit Support Instrument
for some or all of the Parity Obligations.
“Credit Provider Bonds” means any Bonds paid as to principal, Redemption Price, Purchase Price
and/or interest with funds provided under a Credit Support Instrument for so long as such Bonds are held by or
for the account of, or are pledged to, the applicable Credit Provider or any assignee thereof in accordance with
the applicable Credit Support Agreement.
“Credit Provider Reimbursement Obligations” means obligations of the City to pay from the Net
Revenues and amounts in the Light and Power Fund (other than the Operating Reserve) available for such
payment in accordance with the Indenture amounts due under a Credit Support Agreement, including without
limitation amounts advanced by a Credit Provider pursuant to a Credit Support Instrument as credit support or
liquidity for Parity Obligations and the interest with respect thereto.
“Credit Support Agreement” means, with respect to any Credit Support Instrument, the agreement or
agreements (which may be the Credit Support Instrument itself) between the City and the applicable Credit
Provider, as originally executed or as it may from time to time be replaced, supplemented or amended in
accordance with the provisions thereof, providing for the reimbursement to the Credit Provider for payments
under such Credit Support Instrument or for extensions of credit made to the City by the Credit Provider, and
the interest thereon, and includes any subsequent agreement pursuant to which a substitute Credit Support
Instrument is provided, together with any related pledge agreement, security agreement or other security
document.
“Credit Support Instrument” means a policy of insurance, a letter of credit, a stand-by purchase
agreement, revolving credit agreement or other credit arrangement pursuant to which a Credit Provider
provides credit and/or liquidity support with respect to the payment of interest, principal, Redemption Price or
Purchase Price of any Parity Obligations but does not include a Reserve Financial Guaranty.
“Debt Service” means, for any period of time, the sum of: (i) the interest payable during such period
on all Outstanding Parity Obligations, assuming that all Outstanding Serial Parity Obligations are retired as
scheduled and that all Outstanding Term Parity Obligations are redeemed or paid from Sinking Fund
Installments as scheduled; (ii) that portion of the principal amount of all Outstanding Serial Parity Obligations
maturing on each principal payment date during such period, including the Final Compounded Amount of any
Capital Appreciation Obligations; and (iii) that portion of the principal amount of all Outstanding Term Parity
Obligations required to be redeemed or paid from Sinking Fund Installments becoming due during such period
(together with the premiums, if any, thereon).
“Debt Service Adjustments and Assumptions” means, for purposes of determining Aggregate
Adjusted Annual Debt Service and Maximum Adjusted Annual Debt Service, the following adjustments and
assumptions to be made with respect to Debt Service: (i) in determining the amount of Debt Service
constituting principal due in each Fiscal Year, principal payments with respect to Parity Obligations which are
or upon issuance will be, part of a Commercial Paper Program, but which would not constitute Balloon
Indebtedness, will be treated as if such Parity Obligations were to be amortized with substantially level annual
Debt Service payments over a term of 40 years commencing on the date the calculation of Aggregate Adjusted
Annual Debt Service or Maximum Adjusted Annual Debt Service is made; (ii) if all or any portion or portions
of the Parity Obligations constitute, or upon issuance would constitute, Balloon Indebtedness, then, for
purposes of determining Aggregate Adjusted Annual Debt Service and Maximum Adjusted Annual Debt
Service, each maturity which constitutes, or upon issuance would constitute, Balloon Indebtedness will be
treated as if it were to be amortized with substantially level annual Debt Service payments over a term of 40
years commencing on the date which is the first anniversary of the initial issuance of such Parity Obligations;
(iii) if any Outstanding Parity Obligations constitute Tax-Exempt Variable Rate Indebtedness (except to the
extent clause (vii) applies), the interest rate on such Parity Obligations for any period as to which such interest
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rate has not been established will be assumed to be the ten year historical average of the SIFMA Index ending
with the week preceding the date of calculation; (iv) if any Outstanding Parity Obligations constitute Variable
Rate Indebtedness which is not Tax-Exempt (except to the extent clause (vii) applies), the interest rate on such
Parity Obligations for any period as to which such interest rate has not been established will be assumed to be
the ten year historical average of the One Month USD LIBOR Rate ending with the month preceding the date
the calculation of Aggregate Adjusted Annual Debt Service or Maximum Adjusted Annual Debt Service is
made or if the One Month USD LIBOR Rate is not available for such period, another similar rate or index
selected by the City; (v) if the Parity Obligations proposed to be issued will be Tax-Exempt Variable Rate
Indebtedness (except to the extent clause (viii) applies), then the interest rate on such Parity Obligations will be
assumed to be the ten year historical average of the SIFMA Index ending with the week preceding the date the
calculation of Aggregate Adjusted Annual Debt Service or Maximum Adjusted Annual Debt Service is made;
(vi) if the Parity Obligations proposed to be issued will be Variable Rate Indebtedness which is not Tax-
Exempt (except to the extent clause (viii) applies) then the interest rate on such Parity Obligations will be
assumed to be the ten year historical average of the One Month USD LIBOR Rate ending with the month
preceding the date the calculation is made, or if the One Month USD LIBOR Rate is not available for such
period, another similar rate or index selected by the City; (vii) if a Qualified Swap Agreement has been entered
into in connection with any Outstanding Parity Obligations, the interest rate on such Outstanding Parity
Obligations for each Fiscal Year or portion thereof during which payments are to be exchanged by the parties
under such Qualified Swap Agreement will be determined for purposes of calculating Aggregate Adjusted
Annual Debt Service and Maximum Adjusted Annual Debt Service by adding: (1) the amount of Debt Service
paid or to be paid by the City as interest on the Outstanding Parity Obligations during such Fiscal Year or
portion thereof (determined as provided in clauses (iii) or (iv), as applicable, if such Outstanding Parity
Obligations constitute Variable Rate Indebtedness); and (2) the net amount (which may be a negative amount)
paid or to be paid by the City under the Qualified Swap Agreement (after giving effect to payments made and
received, and to be made and received, by the City under the Qualified Swap Agreement) during such Fiscal
Year or portion thereof, and for such purpose any variable rate of interest agreed to be paid under the Qualified
Swap Agreement will be deemed to be the rate at which the related Outstanding Parity Obligations constituting
Variable Rate Indebtedness is assumed to bear interest; (viii) if a Qualified Swap Agreement has been entered
into, or upon issuance of such Parity Obligation will be entered into, by the City with respect to any Parity
Obligations proposed to be issued, the interest on such proposed Parity Obligations for each Fiscal Year or
portion thereof during which payments are to be exchanged under the Qualified Swap Agreement will be
determined for purposes of calculating Aggregate Adjusted Annual Debt Service and Maximum Adjusted
Annual Debt Service by adding: (1) the amount of Debt Service to be paid by the City as interest on such
Parity Obligations during such Fiscal Year or portion thereof (determined as provided in clauses (v) or (vi), as
applicable, if such Parity Obligations are to constitute Variable Rate Indebtedness); and (2) the net amount
(which may be a negative amount) to be paid by the City under the Qualified Swap Agreement (after giving
effect to payments to be made and received by the City under the Qualified Swap Agreement) during such
Fiscal Year or portion thereof, and for such purpose any variable rate of interest agreed to be paid under the
Qualified Swap Agreement will be deemed to be the rate at which the related Parity Obligations which are to
constitute Variable Rate Indebtedness will be assumed to bear interest; and (ix) if any of the Parity Obligations
are, or upon issuance will be, Paired Obligations, the interest thereon will be the resulting linked rate or
effective fixed rate to be paid with respect to such Paired Obligations.
“Debt Service Fund” means the City of Vernon Electric System Debt Service Fund established
pursuant to the Indenture.
“Debt Service Reserve Fund” means the City of Vernon Electric System Debt Service Reserve Fund
established pursuant to the Indenture.
“Debt Service Reserve Requirement” means, as of any date of calculation, an amount equal to the
least of: (i) 10% of the initial offering price to the public of the Bonds as determined under the Code; or (ii) the
greatest amount of Bond Debt Service in any Fiscal Year during the period commencing with the Fiscal Year
in which the determination is being made and terminating with the last Fiscal Year in which any Bond is due;
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or (iii) 125% of the sum of the Bond Debt Service for all Fiscal Years during the period commencing with the
Fiscal Year in which such calculation is made (or if appropriate, the first full Fiscal Year following the
execution and delivery of any Bonds) and terminating with the last Fiscal Year in which any Bond Debt
Service is due, divided by the number of such Fiscal Years, all as computed and determined by the City and
specified in writing to the Trustee; provided, however that in determining Bond Debt Service with respect to
any Bonds that constitute Variable Rate Indebtedness, the interest rate on such Bonds for any period as to
which such interest rate has not been established will be assumed to be: (1) with respect to Bonds which are
Tax-Exempt, the ten year historical average of the SIFMA Index ending with the week preceding the date of
calculation; and (2) with respect to Bonds which are not Tax-Exempt, the ten year historical average of the
One Month USD LIBOR Rate ending with the month preceding the date the calculation is made or if the One
Month USD LIBOR Rate is not available for such period, another similar rate or index selected by the City.
“Debt Service Reserve Valuation Date” means the Business Day preceding each July 1, commencing
July 1, 2009.
“Defeasance Securities” means any of the following securities, if and to the extent the same are at the
time legal investments for funds of the City: (i) U.S. Treasury Certificates, Notes and Bonds (including State
and Local Government Series – (SLGs)); (ii) Direct obligations of the U.S. Treasury which have been stripped
by the U.S. Treasury itself; (iii) Resolution Funding Corporation obligations (“REFCORP”) (only the interest
component of REFCORP strips which have been stripped by request to the Federal Reserve Bank of New
York in book entry form are acceptable); (iv) Obligations issued by the following agencies which are backed
by the full faith and credit of the United States: a. U.S. Export-Import Bank (Eximbank) direct obligations or
fully guaranteed certificates of beneficial ownership; c. Farmers Home Administration (FmHA); c. Federal
Financing Bank; d. General Services Administration Participation Certificates; e. U.S. Maritime
Administration Guaranteed Title XI financing; f. U.S. Department of Housing and Urban Development (HUD)
Project Notes, Local Authority Bonds, New Communities Debentures – U.S. government guaranteed
debentures and U.S. Public Housing Notes and Bonds – U.S. government guaranteed public housing notes and
bonds; and (v) Advance Refunded Municipal Securities.
“Depository” means any bank or trust company organized under the laws of any state of the United
States (including the Trustee and its affiliates), or any national banking association which is willing and able to
accept the office on reasonable and customary terms, authorized by law to act in accordance with the
applicable provisions of the Indenture.
“DTC” means The Depository Trust Company, a limited purpose trust company organized under the
laws of the State of New York or its successors and assigns. References in the Indenture to DTC include any
Nominee of DTC in whose name any Bond is registered.
“Electric Service” means the services, commodities and products furnished, made available or
provided by the Electric System.
“Electric System” means the electrical energy generation, transmission and distribution system of the
City established pursuant to Ordinance No. 1022 of the City (codified as Section 2.91 of the City
Administrative Code) and referred to in the City Administrative Code as the Vernon Electric System,
comprising all electric generation, transmission and distribution facilities and all general plant facilities related
thereto now owned by the City and all other facilities properties, structures or works for the generation,
transmission or distribution of electricity later acquired by the City, including all contractual rights for
electricity or the transmission thereof, together with all additions, betterments, extensions or improvements to
such facilities, properties, structures or works or any part thereof, and any additional contract rights for
electricity or the transmission thereof, later acquired.
“Event of Default” means an event described as such in the Indenture.
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“Electronic” means, with respect to notice, notice through telecopy, telegraph, telex, facsimile
transmission, internet, e-mail, dedicated electronic link or other electronic means of communication capable of
producing a written record.
“Escrow Agent” means the Trustee or a bank or trust company organized under the laws of any state
of the United States, or a national banking association, appointed by the City to hold in trust moneys set aside
for the payment or redemption of, or interest installments on, a Bond or Bonds, or any portion thereof, deemed
paid and defeased pursuant to the Indenture.
“Expense Stabilization Fund” means the City of Vernon Electric System Expense Stabilization Fund
established pursuant to the Indenture.
“Event of Bankruptcy” means any of the following with respect to any Person: (i) the commencement
by such person of a voluntary case under the Federal Bankruptcy Code or any other applicable federal or state
bankruptcy, insolvency or similar laws; (ii) failure by such Person to timely controvert the filing of a petition
with a court having jurisdiction over such Person to commence an involuntary case against such person under
the Federal Bankruptcy Code or any other applicable federal or state bankruptcy, insolvency or similar laws;
(iii) such Person admits in writing its inability to pay its debts generally as they become due; (iv) a receiver,
trustee, custodian or liquidator of such Person or such Person’s assets are appointed in any proceeding brought
against the Person or such Person’s assets; (v) assignment of assets by such person for the benefit of its
creditors; or (vi) the entry by such Person into an agreement of composition with its creditors.
“Favorable Opinion of Bond Counsel” means, with respect to any action requiring such an opinion, an
Opinion of Bond Counsel to the effect that such action does not, in and of itself, adversely affect the Tax-
Exempt status of interest on the Bonds or such portion thereof as specified in the provisions of the Master
Indenture or the Supplemental Indenture requiring such an opinion.
“Federal Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as the
same may be amended and supplemented, and any successor statute.
“Fiduciary” means the Trustee and any Paying Agent for Bonds appointed as provided in the
Indenture.
“Final Compounded Amount” means the Accreted Value of any Capital Appreciation Obligation on
its maturity date.
“Fiscal Year” means the period beginning on July 1 of each year and ending on the next succeeding
June 30, or any other twelve-month period selected and designated as the official Fiscal Year of the City.
“Franchise Payment” means the payment in lieu of franchise tax added to each Electric System
customer bill to be paid to the City’s General Fund and any successor or replacement payment.
“Fund” means each of the funds established under the Indenture.
“Generally Accepted Accounting Principles” means generally accepted accounting principles applied
on a consistent basis set forth in the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants applicable to a government-owned utility applying all
statements and interpretations issued by the Governmental Accounting Standards Board and statements and
pronouncements of the Financial Accounting Standards Board which are not in conflict with the statements
and interpretations issued by the Governmental Accounting Standards Board or in such other statements by
such other entity as may be approved by a significant segment of the accounting profession, that are applicable
to the circumstances as of the date of determination.
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“Indenture” means, the Master Indenture, as supplemented and amended from time to time by
Supplemental Indentures.
“Independent Certified Public Accountant” means a Person which is: (i) a certified public accountant,
or a firm of certified public accountants; (ii) appointed by the City to perform acts, prepare certificates or
otherwise carry out the duties provided for an Independent Certified Public Accountant in the Master Indenture
or any Supplemental Indenture; (iii) independent pursuant to the Statement on Auditing Standards No. 1 of the
American Institute of Certified Public Accountants; (iv) of recognized standing with respect to accounting
matters for municipally-owned electric utilities; and (v) licensed to practice in the State of California.
“Independent Engineer” means a Person which is: (i) a consulting engineer, or a firm of consulting
engineers; (ii) appointed by the City to perform acts, prepare certificates or otherwise carry out the duties
provided for an Independent Engineer in the Master Indenture or any Supplemental Indenture; (iii) of national
recognized standing with respect to engineering matters for electric utilities; and (iv) licensed to practice in the
State of California.
“Information Services” means any of the following services which has been designated in a certificate
of the City delivered to the Trustee: Financial Information, Inc.’s “Daily Called Bond Service,” 30
Montgomery Street, 10th Floor, Jersey City, New Jersey 07302, Attention: Editor; Kenny Information
Services “Called Bond Service,” 65 Broadway, 16th Floor, New York, New York 10006; Moody’s Investors
Service “Municipal and Government,” 99 Church Street, 8th Floor, New York, New York 10007, Attention:
Municipal News Reports; and Standard and Poor’s “Called Bond Record,” 25 Broadway, 3rd Floor, New
York, New York 10004; or such other services providing information with respect to called bonds as the City
may designate in a certificate of the City delivered to the Trustee.
“Initial Amount” means the Accreted Value of a Capital Appreciation Obligation on its date of
issuance and delivery to the original purchaser thereof.
“Interest Account” means the account by that name in the Debt Service Fund established pursuant to
the Indenture.
“Interest Payment Date” means, with respect to a Series of Bonds, each date on which interest on
Bonds of such Series is scheduled to be paid as set forth in, or determined in accordance with, the
Supplemental Indenture authorizing the issuance of such Series.
“Issuing Instrument” means any, indenture, trust agreement or other instrument or agreement under
which Obligations are issued.
“Light and Power Fund” means the Light and Power Department Fund established pursuant to
Ordinance No. 950 of the City (codified as Section 2.65 of the City Administrative Code) and includes any
successor or replacement fund established by the City for the collection of revenues and the payment of
expenses of the Electric System.
“Master Indenture” means the Indenture of Trust, dated as of September 1, 2008 between the City and
the Trustee, as the provisions thereof may be modified or amended from time to time in accordance with the
Indenture.
“Maximum Adjusted Annual Debt Service” means, with respect to a certificate to be delivered in
connection with Additional Parity Obligations pursuant to the Indenture, as of any date and with respect to the
Applicable Parity Obligations, the maximum amount of Adjusted Debt Service becoming due on the
Applicable Parity Obligations in the then current or any future Fiscal Year, as adjusted as provided in the
Indenture and calculated by the City or by an Independent Engineer. For purposes of calculating Maximum
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Adjusted Annual Debt Service, the determination of Debt Service on the Applicable Parity Obligations coming
due in each Fiscal Year will be subject to the Debt Service Adjustments and Assumptions.
“Moody’s” means Moody’s Investors Service, Inc. and any successor entity rating Parity Obligations
at the request of the City.
“Net Payment” means with respect to a Qualified Swap Agreement, the amount payable by the City
on each scheduled payment date under such Qualified Swap Agreement net of the amount payable by the
counterparty under such Qualified Swap Agreement on such scheduled payment date.
“Net Revenues” mean, for any period of time, the Revenues for such period less the Operation and
Maintenance Expenses for such period.
“Net Transferable Income” means, with respect to any Fiscal Year, the Net Revenues for such Fiscal
Year less the Debt Service for such Fiscal Year; provided that, commencing with the Fiscal Year ended June
30, 2013, the Net Transferable Income for any Fiscal Year may not exceed the difference between: (i) 11.5%
of the retail sales for such Fiscal Year; and (ii) the sum of: (A) the amount paid pursuant to clause (d) of the
definition of Operation and Maintenance Expenses in such Fiscal Year; plus (B) the amount, if any, paid to the
City as a Franchise Payment in such Fiscal Year.
“Nominee” means the nominee of the Securities Depository for the Book-Entry Bonds in whose name
such Bonds are to be registered. The initial Nominee will be Cede & Co., as the nominee of DTC.
“Obligations” means: (i) obligations with respect to borrowed money and includes bonds, notes or
other evidences of indebtedness, installment purchase payments under any contract, and lease payments under
any financing or capital lease (determined to be such in accordance with Generally Accepted Accounting
Principles), which are payable from the Net Revenues and/or amounts in the Light and Power Fund;
(ii) obligations to replenish any debt service reserve fund with respect to obligations of the City described in
clause (i) above; (iii) obligations under any Public Finance Contract payable from the Net Revenues and/or
amounts in the Light and Power Fund; and (iv) Credit Provider Reimbursement Obligations.
“One Month USD LIBOR Rate” means the British Banker’s Association average of interbank offered
rates in the London market for United States dollar deposits for a one month period as reported in the Wall
Street Journal or, if not reported in such newspaper, as reported in such other source as may be selected by the
City.
“Operating Reserve” means, as of any date of calculation, an amount in the Light and Power Fund
equal to the amount contained in the then current Budget for Operation and Maintenance Expenses for the four
months next succeeding the month in which the date of calculation occurs.
“Operation and Maintenance Expenses” mean the costs paid or incurred by the City for operating and
maintaining the Electric System including, but not limited to: (i) all costs of electric energy and power
generated or purchased by the City for resale, costs of transmission, fuel supply and water supply in
connection with the foregoing; (ii) all costs and expenses of management of the Electric System; (iii) all costs
and expenses of maintenance and repair, and other expenses necessary or appropriate in the judgment of the
City to maintain and preserve, the Electric System in good repair and working order; (iv) all administrative
costs of the several departments of the City that are charged directly or apportioned to the operation or
maintenance of the Electric System, such as salaries and wages (including retirement benefits) of employees,
overhead, taxes (if any) and insurance premiums; (v) payments in-lieu of taxes to any public agency other than
the City in connection with the Electric System; (vi) all costs, expenses and charges of the City required to be
paid by it to comply with the terms of any Issuing Instrument authorizing the issuance of Parity Obligations,
such as compensation, reimbursement and indemnification of the trustee, remarketing agent, broker-dealer or
auction agent or fees and expenses of Independent Certified Public Accountants, Independent Engineers and
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other consultants; (vii) the fees, expenses and indemnification of Credit Providers and Reserve Financial
Guaranty Providers; (viii) all amounts required to be paid by the City under contracts with a joint powers
agencies for the purchase of capacity, rights in an electric generating station or electric transmission facilities,
transmission capability or any other commodity right, or service in connection with the Electric System, which
contracts require payments to be made by the City thereunder to be treated as operation and maintenance
expenses of the Electric System; (ix) all deposits to be made to a rebate fund established with respect to Parity
Obligations to provide for any rebate to the United States required to maintain the Tax-Exempt status of
interest on such Parity Obligations; (x) any cost or expense paid by the City to comply with requirements of
law applicable to the Electric System or the City’s ownership or operation thereof or in any capacity with
respect thereto or any activity in connection therewith, including without limitation the Public Benefits uses
required by Section 385 of the California Public Utilities Code; and (xi) any other cost or expense which, in
accordance with Generally Accepted Accounting Principles, is to be treated as a cost of operating or
maintaining the Electric System; but excluding in all cases depreciation, replacement and obsolescence charges
or reserves therefor, amortization of intangibles, Franchise Payments to the City and Unrealized Items. Except
as provided in clause (iv), no transfer of Revenues to the City, including the Franchise Payment, will constitute
an Operation and Maintenance Expense.
“Opinion of Bond Counsel” means a written opinion signed by Bond Counsel.
“Outstanding” when used as of any particular time with respect to Obligations, means, except as
otherwise provided in the Indenture, all Obligations theretofore or thereupon being issued by the City, except:
(i) Obligations theretofore cancelled or surrendered for cancellation; (ii) Obligations paid or deemed to be paid
within the meaning of any defeasance provisions of the Issuing Instrument pursuant such Obligations were
issued; and (iii) Obligations in lieu of or in substitution for which replacement Obligations have been issued.
“Paired Obligations” mean any Series (or portion thereof) of Parity Obligations designated as Paired
Obligations in the Issuing Instrument authorizing the issuance thereof, which are simultaneously issued: (i) the
principal of which is of equal amount maturing and to be redeemed (or cancelled after acquisition thereof) on
the same dates and in the same amounts; and (ii) the interest rates which, taken together, result in an
irrevocably fixed interest rate obligation of the City for the terms of such Paired Obligations.
“Parity Obligations” means Bonds and any Obligations which are payable from the Net Revenues and
amounts in the Light and Power Fund other than the Operating Reserve available for such payment in
accordance with the Master Indenture on a parity with the payment of the Bonds and which satisfy the
applicable conditions of the Indenture, including without limitation Credit Provider Reimbursement
Obligations and, with respect to Qualified Swap Agreements, the Net Payments, but not the Termination
Payments and other payments, due thereunder.
“Participants” means, with respect to a Securities Depository for Book-Entry Bonds, those participants
listed in such Securities Depository’s book-entry system as having an interest in such Bonds.
“Paying Agent” means, with respect to a Series of Bonds, the Trustee and any banking corporation,
banking association or trust company designated as paying agent for such Series of Bonds pursuant to the
Indenture, and its successor or successors appointed in the manner provided in the Indenture.
“Permitted Investments” means any of the following obligations if and to the extent that they are
permissible investments of funds of the City as stated in its current investment policy (the Trustee may rely on
the investment directions of the City that the investment is approved by the City’s investment policy) and to
the extent then permitted by law:
(i) Direct obligations of the United States (including obligations issued or held in book-
entry form on the books of the Department of the Treasury, and CATS and TIGRS) or obligations the principal
of and interest on which are unconditionally guaranteed by the United States.
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(ii) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by
any of the following federal agencies and provided such obligations are backed by the full faith and credit of
the United States (stripped securities are only permitted if they have been stripped by the agency itself):
(1) U.S. Export-Import Bank (Eximbank) Direct obligations or fully guaranteed certificates of beneficial
ownership; (2) Farmers Home Administration (“FmHA”) Certificates of beneficial ownership; (3) Federal
Financing Bank; (4) Federal Housing Administration Debentures (“FHA”); (5) General Services
Administration Participation certificates; (6) Government National Mortgage Association (“GNMA”) GNMA -
guaranteed mortgage-backed bonds GNMA - guaranteed pass-through obligations (participation certificates);
and (7) United States Maritime Administration Guaranteed Title XI financing; (8) United States Department of
Housing and Urban Development Project Notes, Local Authority Bonds and New Communities Debentures -
U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed
public housing notes and bonds.
(iii) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by
any of the following non-full faith and credit United States government agencies (stripped securities are only
permitted if they have been stripped by the agency itself): (1) Federal Home Loan Bank System
Senior debt obligations; (2) Federal Home Loan Mortgage Corporation (“FHLMC”) Participation Certificates
Senior debt obligations; (3) Federal National Mortgage Association (“FNMA”) Mortgage-backed securities
and senior debt obligations; (4) Student Loan Marketing Association Senior debt obligations; (5) Resolution
Funding Corporation obligations; and (6) Farm Credit System Consolidated system-wide bonds and notes.
(iv) Money market funds registered under the Federal Investment Company Act of 1940,
whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of “AAAm-
G,” “AAA-m” or “AA-m” and if rated by Moody’s rated “Aaa,” “Aa1” or “Aa2,” including funds for which
the Trustee or any of its affiliates (including any holding company, subsidiaries, or other affiliates) provides
investment advisory or other management services, provided such funds satisfy the criteria contained in the
Indenture.
(v) Certificates of deposit secured at all times by collateral described in (i) and/or (ii)
above. Such certificates must be issued by commercial banks (including affiliates of the Trustee), savings and
loan associations or mutual savings banks. The collateral must be held by a third party and the City or the
Trustee must have a perfected first security interest in the collateral.
(vi) Certificates of deposit, savings accounts, deposit accounts or money market deposits
(including those of the Trustee and its affiliates) which are fully insured by FDIC, including BIF and SAIF.
(vii) Investment agreements with, or guaranteed by, a domestic or foreign bank or
corporation (other than a life or property casualty insurance company) the long-term debt of which is rated at
least “AA” by S&P and “Aa” by Moody’s, and which agreements are acceptable to each Credit Provider
whose acceptance is required by a Supplemental Indenture or a Credit Support Agreement.
(viii) Commercial paper rated, at the time of purchase, “Prime - 1” by Moody’s and “A-1”
or better by S&P.
(ix) Bonds or notes issued by any state or municipality which are rated by Moody’s and
S&P in one of the two highest rating categories assigned by such agencies.
(x) Federal funds or bankers acceptances with a maximum term of one year of any bank
(including those of the Trustee and its affiliates) which has an unsecured, uninsured and unguaranteed
obligation rating of “Prime - 1” or “A3” or better by Moody’s and “A-1” or “A” or better by S&P.
(xi) Repurchase Agreements for 30 days or less must satisfy the following criteria.
Repurchase Agreements which exceed 30 days must be acceptable to each Credit Provider whose acceptance is
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required by a Supplemental Indenture or a Credit Support Agreement. Repurchase agreements must be
between the City or the Trustee and a dealer bank or securities firm. Primary dealers on the Federal Reserve
reporting dealer list must be rated “A” or better by S&P and “A2” or better by Moody’s, or banks must be
rated “A” or better by S&P and “A2” or better by Moody’s. The written repurchase agreements contract must
include the following: (1) securities which are acceptable for transfer are: (a) Securities described in clauses (i)
or (ii) of this definition; or (b) Securities of FNMA or FHLMC described in clause (iii) of this definition;
(2) the collateral must be delivered to the City, the Trustee (if the Trustee is not supplying the collateral) or
third party acting as agent for the Trustee (if the Trustee is supplying the collateral) before/simultaneously with
payment; (3)(a) the securities must be valued weekly, marked-to-market at current market price plus accrued
interest; (b) the value of collateral in the case of securities described in clauses (i) or (ii) of this definiton must
be equal to 104% of the amount of cash transferred by the City or the Trustee to the dealer bank or security
firm under the repurchase agreements plus accrued interest. The value of collateral in the case of securities of
FNMA or FHLMC described in clause (iii) of this definition must be equal to 105% of the amount of cash
transferred by the City or the Trustee to the dealer bank or security firm under the repurchase agreement plus
accrued interest. If the value of securities held as collateral falls below the required percentage of the value of
the cash transferred, then additional cash and/or acceptable securities must be transferred. An opinion of
counsel selected by the City, which may be the City Attorney or other counsel retained by the City, to the
effect that the repurchase agreement meets guidelines under state law for legal investment of public funds must
be received by the City or the Trustee.
(xii) Any state administered pool investment fund in which the City is statutorily
permitted or required to invest will be deemed a permitted investment, including, but not limited to the Local
Agency Investment Fund in the treasury of the State.
(xiii) Advance Refunded Municipal Securities.
“Person” means an individual, corporation, firm, association, partnership, trust or other legal entity or
group of entities, including a governmental entity or any agency or political subdivision thereof.
“Principal Account” means the account by that name in the Debt Service Fund established pursuant to
the Indenture.
“Principal Office” means, with respect to: (i) the Trustee, the principal office of such Trustee in Los
Angeles, California, or such other office of the Trustee designated thereby; and (ii) a Paying Agent or a Credit
Provider, the office designated as such in writing by such party to the Trustee, except that with respect to
presentation of Bonds for payment or for registration of transfer and exchange such term will mean the office
or agency of the Trustee at which, at any particular time, its corporate trust agency business is conducted.
“Prudent Utility Practice” means any of the practices, methods, and acts which, in the exercise of
reasonable judgment, in light of the facts, including but not limited to, the practices, methods, and acts engaged
in or approved by a significant portion of the electric utility industry prior thereto, known at the time the
decision was made, would have been expected to accomplish the desired result consistent with cost-
effectiveness, reliability, safety, and expedition. It is recognized that Prudent Utility Practice is not intended to
be limited to optimum practice, method, or act to the exclusion of all others, but rather is a spectrum of
possible practices, methods, or act which could have been expected to accomplish the desired result at the
lowest reasonable cost consistent with cost-effectiveness, reliability, safety, and expedition.
“Public Finance Contract” means: (i) any contract providing for payments based on levels of, or
changes in, interest rates, currency exchange rates, stock or other indices; (ii) any contract to exchange cash
flows or a series of payments; or (iii) any contract to hedge payment, currency, rate spread or similar exposure,
including but not limited to interest, any interest rate swap agreement, currency swap agreement, forward
payment conversion agreement or futures contract, any contract providing for payments based on levels of, or
changes in, interest rates, currency exchange rates, stock or other indices, any contract to exchange cash flows
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or a series of payments, or any contract, including, without limitation, an interest rate floor or cap, or an option,
put or call, to hedge payment, currency, rate, spread or similar exposure, between the City and a counterparty.
“Purchase Price” means: (i) with respect to Bonds of any Series, the purchase price set forth in or
determined pursuant to the Supplemental Indenture authorizing the Bonds of such Series to be paid to the
Owners of such Bonds when such Bonds are tendered for purchase or deemed tendered for purchase in
accordance with the provisions of such Supplemental Indenture; and (ii) with respect to other Parity
Obligations, the purchase price set forth in the Issuing Instrument authorizing such Parity Obligations to be
paid to the owners of such Parity Obligations when such Parity Obligations are tendered or deemed tendered
for purchase in accordance with the provisions of such Issuing Instrument.
“Qualified Swap Agreement” means a Public Finance Contract entered into by the City and satisfying
the conditions of the Indenture.
“Rating Agency” means, as of any time and to the extent it is then providing or maintaining a rating
on Parity Obligations at the request of the City, each of Moody’s or Standard & Poor’s, or in the event that
neither Moody’s or Standard & Poor’s then maintains a rating on Parity Obligations at the request of the City,
any other nationally recognized rating agency then providing or maintaining a rating on the Bonds at the
request of the City.
“Rating Category” means: (i) with respect to any long-term rating category, all ratings designated by a
particular letter or combination of letters, without regard to any numerical modifier, plus or minus sign or other
modifier; and (ii) with respect to any short-term or commercial paper rating category, all ratings designated by
a particular letter or combination of letters and taking into account any numerical modifier, but not any plus or
minus sign or other modifier.
“Rating Confirmation” means written evidence from each Rating Agency then rating Outstanding
Parity Obligations at the request of the City to the effect that, following the event which requires the Rating
Confirmation, the then current rating for each Outstanding Parity Obligation will not be lowered or withdrawn
solely as a result of the occurrence of such event.
“Rebate Fund” means the City of Vernon Electric System Rebate Fund established pursuant to the
Indenture.
“Record Date” means, with respect to an Interest Payment Date for a Series of Bonds, the date or
dates specified as such in the Supplemental Indenture authorizing such Series of Bonds.
“Redemption Date” means, with respect to any Bonds to be redeemed in accordance with the Master
Indenture and the Supplemental Indenture authorizing such Bonds, the redemption date set forth in notice of
redemption of such Bonds given in accordance with the terms of the Indenture.
“Redemption Fund” means the City of Vernon Electric System Redemption Fund established pursuant
to the Indenture.
“Redemption Price” means, with respect to any redemption of a Bond prior to its maturity, the amount
to be paid upon such redemption of the Bond as set forth in, or determined in accordance with, the
Supplemental Indenture authorizing such Bond.
“Refunding Bonds” means Bonds issued in accordance with the terms and conditions of the Indenture
for the purposes, and satisfying the conditions of, the Indenture.
“Refunding Parity Obligations” means Parity Obligations, including Refunding Bonds, issued for the
purposes set forth in the Indenture and satisfying the conditions set forth in the Indenture .
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“Representation Letter” the letter or letters of representation from the City to, or other instrument or
agreement with, a Securities Depository for Book-Entry Bonds, in which the City, among other things, makes
certain representations to the Securities Depository with respect to the Book-Entry Bonds, the payment thereof
and delivery of notices with respect thereto.
“Reserve Financial Guaranty” means a policy of municipal bond insurance or surety bond issued by a
municipal bond insurer or a letter of credit issued by a bank or other institution if the obligations insured by
such insurer or issued by such bank or other institution, as the case may be, have ratings at the time of issuance
of such policy or surety bond or letter of credit in the highest rating category (without regard to qualifiers) by
S&P and Moody’s and, if rated by A.M. Best & Company, also in the highest rating category (without regard
to qualifiers) by A.M. Best & Company.
“Reserve Financial Guaranty Provider” means an issuer of a Reserve Financial Guaranty.
“Revenues” mean all gross income and revenue received or receivable by the City from the ownership
or operation of the Electric System, including all rates and charges for the Electric Service and the other
services and facilities of the Electric System, all proceeds of insurance covering business interruption loss
relating to the Electric System and all other income and revenue howsoever derived by the City from the
ownership or operation of the Electric System or otherwise arising from the Electric System, including all net
receipts pursuant to Public Finance Contracts entered into in connection with any Obligations or program of
investments relating to the Electric System and all income from the deposit or investment of any money in the
Light and Power Fund, but excluding: (i) proceeds of taxes; (ii) refundable deposits made to establish credit
and advances; (iii) contributions in aid of construction; and (iv) line extension fees.
“Rule 15c2-12” means Rule 15c2-12 of the Securities and Exchange Commission adopted pursuant to
the Securities Exchange Act of 1934, as amended, as the same may be amended and supplemented from time
to time.
“Securities Depository” means a trust company or other entity which provides a book-entry system for
the registration of ownership interests of Participants in securities and which is acting as security depository
for Book-Entry Bonds.
“Serial Obligations” means Obligations for which no Sinking Fund Installments are established.
“Serial Parity Obligations” means Serial Obligations which are Parity Obligations.
“Series” means Obligations issued at the same time or sharing some other common term or
characteristic and designated in the Issuing Instrument pursuant to which such Obligations were issued as a
separate issue or series of Obligations.
“SIFMA Index” means, as of any date, The Securities Industry and Financial Markets Association
Municipal Swap Index as of the most recent date for which such index was published or such other weekly,
high-grade index comprised of seven-day, Tax-Exempt variable rate demand notes produced by Municipal
Market Data, Inc., or its successor, or as otherwise designated by The Securities Industry and Financial
Markets Association; provided, however, that, if such index is no longer produced by Municipal Market Data,
Inc. or its successors, then “SIFMA Index” will mean such other reasonably comparable index as may be
selected by the City.
“Sinking Fund Account” means the account by that name in the Debt Service Fund established
pursuant to the Indenture.
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“Sinking Fund Installment” means, with respect to any Term Parity Obligations, each amount so
designated for such Term Parity Obligations in the Issuing Instrument authorizing the issuance of such Parity
Obligations requiring payments by the City to be applied to the retirement of such Parity Obligations on and
prior to the stated maturity date thereof.
“Standard & Poor’s” means Standard & Poor’s Rating Services and any successor entity rating Parity
Obligations at the request of the City.
“State” means the State of California.
“Subordinate Obligation” means any Obligation which is expressly made subordinate and junior in
right of payment from the Net Revenues and amounts in the Light and Power Fund other than the Operating
Reserve available for such payment in accordance with the Master Indenture to the payment of Parity
Obligations and which complies with the provisions of the Indenture.
“Supplemental Indenture” means any supplemental indenture supplementing or amending the
Indenture as theretofore in effect, entered into by the City and the Trustee in accordance with the Indenture.
“Tax Certificate” means a certificate relating to the requirements of the Code signed on behalf of the
City and delivered in connection with the issuance of a Series of Bonds.
“Tax-Exempt” means, with respect to interest on any obligations of a state or local government,
including the Bonds, that such interest is excluded from the gross income of the holders thereof (other than any
holder who is a “substantial user” of facilities financed with such obligations or a “related person” within the
meaning of Section 147(a) of the Code) for federal income tax purposes, whether or not such interest is
includable as an item of tax preference or otherwise includable directly or indirectly for purposes of calculating
other tax liabilities, including any alternative minimum tax or environmental tax under the Code.
“Tax-Exempt Securities” means bonds, notes or other securities the interest on which is Tax-Exempt.
“Tender Indebtedness” means any Parity Obligations or portions of Parity Obligations, a feature of
which is an option or obligation, on the part of the owners thereof under the terms of such Parity Obligations,
to tender all or a portion of such Parity Obligations to the City, a fiscal agent, a paying agent, a tender agent or
other agent for purchase and requiring that such Parity Obligations or portions thereof be purchased at the
applicable Purchase Price if properly presented.
“Termination Payment” means with respect to a Qualified Swap Agreement, the amount payable by
the City as a result of the termination of such Qualified Swap Agreement prior to its scheduled expiration date.
“Term Obligations” means Obligations which are payable on or before their specified maturity dates
from Sinking Fund Installments established for that purpose and calculated to retire such Obligations on or
before their specified maturity dates.
“Term Parity Obligations” means Term Obligations which are Parity Obligations.
“Trust Estate” means, subject to the provisions of the Indenture permitting the application thereof for
the purposes and on the terms and conditions set forth therein: (i) the Revenues; (ii) all amounts on deposit in
the Light and Power Fund, including the investments, if any, thereof; and (iii) all amounts on deposit in the
Funds, other than the Rebate Fund, held by the Trustee under the Indenture, including the investments, if any,
thereof.
“Trustee” means, The Bank of New York Mellon Trust Company, N.A., as trustee for the Bonds
under the Indenture and any successor satisfying the requirements of the Indenture.
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“Unrealized Item” means each item of revenue or expense of the Electric System recognized as a
revenue or expense of the Electric System in accordance with Generally Accepted Accounting Principles
which are due to unrealized gains or losses caused by marking assets or liabilities of the Electric System to
market.
“Variable Rate Indebtedness” means any Obligation, other than Paired Obligations, the interest rate on
which to the maturity thereof is not established at a rate which is not subject to fluctuation or subsequent
adjustment, either at the time of issuance of such Obligation or some subsequent date.
Rules of Construction. Words of the masculine gender will be deemed and construed to include
correlative words of the feminine and neutral genders. Except where the context otherwise requires, words
importing the singular number include the plural number and vice versa, and words importing persons include
corporations and associations, including districts, agencies and other public bodies, as well as natural persons.
The term “principal” when used with reference to a Capital Appreciation Obligation as of its maturity
date refers to the Final Compounded Amount of such Capital Appreciation Obligation and as to any other date,
the Accreted Value of such Capital Appreciation Obligation as of such date. The term “principal” when used
with reference to a Parity Obligation which is a Qualified Swap Agreement refers to the Net Payments due
under such Qualified Swap Agreement. The term “principal” when used with reference to a Parity Obligation
which is a Credit Provider Reimbursement Obligation refers to the amount advanced by the Credit Provider to
the extent not included in Parity Obligations as Credit Provider Bonds.
The term “issue” includes issuance, creation, incurrence, entering into an agreement or any other act
pursuant to which a party may become obligated with respect to an Obligation.
AUTHORIZATION AND ISSUANCE OF BONDS
Authorization of Bonds. The Indenture provides certain terms and conditions upon which Bonds of
the City to be designated as “City of Vernon Electric System Revenue Bonds” may be issued from time to time
as authorized by Supplemental Indentures. The aggregate principal amount of Bonds which may be executed,
authenticated and delivered under the Indenture is not limited except as may be provided therein or as may be
limited by law.
Bonds Constitute Special Obligations. The Bonds do not constitute a charge against the general credit
of the City but constitute and evidence special obligations of the City payable as to principal, Redemption
Price, if any, and interest solely from the Net Revenues and the other funds pledged therefor and available for
such payment in accordance with the Indenture and, with respect to any particular Bonds, from such other
sources as are specified in the Supplemental Indenture authorizing the issuance of such Bonds. The Purchase
Price for the Bonds of any Series which are Tender Indebtedness will be payable from such sources, other than
the Revenues and the other amounts in the Light and Power Fund, as are specified in the Supplemental
Indenture authorizing the issuance of such Series. The provisions of the Indenture do not preclude the
payment, purchase or redemption of Bonds, at the election of the City, from any other legally available funds.
The Bonds are not secured by a legal or equitable pledge of, or lien or charge upon, any property of the City or
any of its income or receipts except the Trust Estate pledged therefor pursuant to the Master Indenture which
pledge is subject to the provisions thereof permitting the application of the Trust Estate for the purposes and on
the terms and conditions set forth therein. Neither the faith and credit nor the taxing power of the State of
California, the City or any other public agency is pledged to the payment of the principal or Redemption Price
of or the interest on the Bonds. The issuance of the Bonds will not directly, indirectly or contingently obligate
the City Council of the City to levy or pledge any form of taxation or to make any appropriation for the
payment of the Bonds. The payment of the principal or Redemption Price of, or interest on, the Bonds does
not constitute a debt, liability or obligation of the State of California or any public agency (other than the
special obligation of the City as provided in the Indenture). Neither the members of the City Council of the
City, nor any person executing a Bond, nor any officer or employee of the City will be liable personally for the
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principal or Redemption Price of, or interest on, the Bonds or be subject to any personal liability or
accountability by reason of the issuance of the Bonds or in respect of any undertakings by the City under the
Indenture. The face of each Bond will contain a legend to the foregoing effect.
Indenture to Constitute Contract. In consideration of the purchase and acceptance of each Bond
issued under the Indenture by those who own the same from time to time, the provisions of each Bond and the
provisions of the Indenture applicable to such Bond will be deemed to be and will constitute a contract
between the City and the Owner of such Bond.
Additional Bonds. One or more Series of Additional Bonds may be issued, authenticated and
delivered upon original issuance for the purpose of paying all or a portion of the Costs of any Capital
Improvement. Additional Bonds may be issued in a principal amount sufficient to pay such Costs, including
making of any deposits into the funds or accounts required by the provisions of the Indenture and providing
amounts for Costs of Issuance of such Additional Bonds.
Refunding Bonds.
(a) One or more Series of Refunding Bonds may be issued, authenticated and delivered upon
original issuance for the purpose of refunding all or any portion of the Outstanding Parity Obligations.
Refunding Bonds may be issued in a principal amount sufficient to accomplish such refunding including
providing amounts for the Costs of Issuance of such Refunding Bonds, and the making of any deposits into the
funds and accounts required by the provisions of the Indenture.
(b) Refunding Bonds of each Series will be authenticated and delivered by the Trustee only upon
receipt by the Trustee (in addition to the documents required by the Indenture) of an Opinion of Bond Counsel
to the effect that the Parity Obligations (or the portion thereof) to be refunded are deemed paid pursuant to the
Issuing Instrument authorizing such Parity Obligations. Such Opinion of Bond Counsel may rely upon an
Accountant’s Certificate as to the sufficiency of available funds to pay such Parity Obligations. The Trustee
may conclusively rely on such Opinion of Bond Counsel in determining whether the conditions precedent for
the issuance and authentication of such Series of Refunding Bonds have been satisfied.
(c) The proceeds, including accrued interest, of the Refunding Bonds of each Series will be
applied simultaneously with the delivery of such Bonds as provided in the Supplemental Indenture authorizing
such Series of Refunding Bonds.
Conditions of Issuance of Subordinate Obligations.
(a) The City may, at any time or from time to time, issue Subordinate Obligations without
satisfying the requirements of the Indenture with respect to Parity Obligations for any purpose in connection
with the Electric System, including, without limitation, the financing of a part of the cost of acquisition and
construction of any Capital Improvement or the refunding of any Subordinate Obligations or Outstanding
Parity Obligations (or portions thereof). Such Subordinate Obligations may be secured by a pledge of
Revenues and amounts in the Light and Power Fund, provided that any such pledge will be, and will be
expressed to be, subordinate and junior in all respects to the pledge of the Revenues and amounts in the Light
and Power Fund securing such Parity Obligations as may be Outstanding from time to time, including Parity
Obligations issued after the issuance of such Subordinate Obligations. Such Subordinate Obligations may be
payable from Net Revenues and amounts in the Light and Power Fund, other than the Operating Reserve, as
may from time to time be available for such payment in accordance with the Master Indenture, provided that
any such payment will be, and will be expressed to be, subordinate and junior in all respects to the payment
from such sources of such Parity Obligations as may be Outstanding from time to time, including Parity
Obligations issued after the issuance of such Subordinate Obligations.
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(b) The Issuing Instrument for Subordinate Obligations must contain provisions (which will be
binding on all owners of such Subordinate Obligations) not more favorable to the owners of such Subordinate
Obligations than the following:
(1) If an Event of Bankruptcy with respect to the City occurs and is continuing, the
owners of all Outstanding Parity Obligations will be entitled to receive payment in full in cash of all principal,
interest and all other payments due with respect to all such Parity Obligations, including any Termination
Payments, before the owners of the Subordinate Obligations are entitled to receive any payment from the Net
Revenues and amounts in the Light and Power Fund with respect to the Subordinate Obligations.
(2) In the event that any Subordinate Obligation is declared due and payable before its
expressed maturity because of the occurrence of an event of default (under circumstances when the provisions
of clause (1) are not applicable), the owners of all Parity Obligations Outstanding at the time such Subordinate
Obligation so becomes due and payable because of such event of default, will be entitled to receive payment in
full in cash of all principal, interest and all other payments due with respect to all such Parity Obligations
before the owners of such Subordinate Obligation are entitled to receive any accelerated payment from Net
Revenues and amounts in the Light and Power Fund with respect to such Subordinate Obligation. For
purposes of the foregoing, a termination payment with respect to a Public Finance Contract which is not a
Qualified Swap Agreement will not be considered a declaration of amounts due and payable before expressed
maturity even if declared due and payable because of the occurrence of an event of default.
(3) If any default with respect to any Outstanding Parity Obligation has occurred and is
continuing (under circumstances when the provisions of clause (1) above is not applicable), the owners of all
Outstanding Parity Obligations will be entitled to receive payment in full in cash of all principal, interest and
all other payments due with respect to all such Parity Obligations as the same become due and payable in
accordance with the provisions of the Issuing Instrument authorizing the issuance of such Parity Obligations
before the owners of the Subordinate Obligations are entitled to receive, subject to the provisions of clause (5),
any payment from the Net Revenues and amounts in the Light and Power Fund with respect to the Subordinate
Obligations.
(4) No Bondowner or owner of other Outstanding Parity Obligations will be prejudiced
in his right to enforce subordination of the Subordinate Obligations by any act or failure to act on the part of
the City or the Trustee.
(5) The Subordinate Obligations may provide that the provisions of clauses (1), (2), (3)
and (4) are solely for the purpose of defining the relative rights of the Owners of the Bonds and the owners of
all other Outstanding Parity Obligations on the one hand, and the owners of Subordinate Obligations on the
other hand, and that nothing therein will impair, as between the City and the owners of the Subordinate
Obligations, the obligation of the City, which may be unconditional and absolute, to pay to the owners of such
Subordinate Obligations the principal thereof and premium, if any, and interest thereon in accordance with
their terms, nor will anything in the Indenture prevent the owners of the Subordinate Obligations from
exercising all remedies otherwise permitted by applicable law, or under the Subordinate Obligations or the
Issuing Instruments authorizing the Subordinate Obligations, upon default under such Subordinate Obligations
or Issuing Instruments, subject to the rights under clauses (1), (2), (3) and (4) above of the Owners of
Outstanding Bonds and the owners of other Outstanding Parity Obligations to receive payment from the Net
Revenues and amounts in the Light and Power Fund otherwise payable or deliverable to the owners of the
Subordinate Obligations; and the Subordinate Obligations may provide that, insofar as a trustee, fiscal agent or
paying agent for such Subordinate Obligations is concerned, the foregoing provisions do not prevent the
application by such trustee, fiscal agent or paying agent of any moneys deposited with such trustee, fiscal agent
or paying agent for the purpose of the payment of or on account of the principal (and premium, if any) and
interest on such Subordinate Obligations if such trustee, fiscal agent or paying agent did not have knowledge at
the time of such application that such payment was prohibited by the foregoing provisions.
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(c) Any Subordinate Obligations may have such rank or priority with respect to any other
Subordinate Obligations as may be provided in the Issuing Instrument, authorizing the issuance or securing of
such Subordinate Obligations and may contain such other provisions as are not in conflict with the provisions
of the Indenture.
Credit Provider Bonds. Subject only to the provisions that are set forth under the caption “—Bonds
Constitute Special Obligations,” notwithstanding any other provision contained in the Indenture to the
contrary, Bonds which are Credit Provider Bonds will have terms and conditions, including terms of maturity,
payment, prepayment and interest rate, as will be specified in the applicable Credit Support Agreement.
GENERAL TERMS AND PROVISIONS OF BONDS
Medium of Payment; Form and Date; Letters and Numbers.
(a) Unless otherwise provided with respect to a Series of Bonds in the Supplemental Indenture
authorizing such Series, the Bonds of each Series will be payable, with respect to principal, Redemption Price,
if any, Purchase Price, if any, and interest in any coin or currency of the United States of America which at the
time of payment is legal tender for the payment of public and private debts.
(b) The Bonds of each Series will be dated as provided in or determined pursuant to the
Supplemental Indenture authorizing such Series. Unless otherwise provided with respect to a Series of Bonds
in the Supplemental Indenture authorizing such Series, the Bonds of each Series will bear interest from the
Interest Payment Date next preceding the date of authentication thereof unless: (i) such Bonds are
authenticated on an Interest Payment Date, in which event from such Interest Payment Date; and (ii) unless
such Bonds are authenticated after a Record Date and before the next succeeding Interest Payment Date for
such Bonds, in which event from such Interest Payment Date; provided, however, that if the date of
authentication of a Bond is prior to the Record Date for the first Interest Payment Date for such Bond, such
Bond will bear interest from its original dated date. Notwithstanding the foregoing, if the City defaults in the
payment of interest, then the Bonds will bear interest from the date to which interest has been paid or if no
interest has been paid, from their original dated date.
(c) Unless otherwise provided with respect to a Series of Bonds in the Supplemental Indenture
authorizing such Series, the interest payable on Bonds will be calculated on the basis of a 360-day year of
twelve thirty day months.
(d) Except as otherwise provided in the Representation Letter with a Securities Depository for
Book-Entry Bonds (or, with respect to a Series of Bonds in the Supplemental Indenture authorizing such
Series), interest on each Bond will be payable on each Interest Payment Date for such Bond and will be paid
by check of the Trustee mailed on such Interest Payment Date to the Owner of such Bond shown on the Bond
Register as of the close of business on the Record Date immediately preceding such Interest Payment Date.
Owners of at least $1,000,000 aggregate principal amount (or, with respect to a Series of the Bonds, such other
principal amount as may be specified in the Supplemental Indenture authorizing such Series), of Bonds of any
Series may, at any time prior to a Record Date with respect to the payment of interest on such Bonds, give the
Trustee written instructions for payment of such interest on each succeeding Interest Payment Date for such
Bonds by wire transfer or by deposit to an account within the United States of America. Notwithstanding the
foregoing, however, if the City defaults in the payment of interest due on Bonds on any Interest Payment Date,
such interest will cease to be payable to the persons in whose name such Bonds were registered in the Bond
Register on the Record Date for such Interest Payment Date, and will be payable, when and if paid by the City,
to the persons in whose names such Bonds are registered at the close of business on the record date fixed
therefor by the Trustee, which may not be more than 15 days and not less than 10 days prior to the date of the
proposed payment.
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(e) Unless redeemed prior to such date, the principal of each Bond will be payable on its maturity
date and the Redemption Price of each Bond called for redemption prior to maturity, subject to the terms of the
Indenture, will be payable on the applicable redemption date. Except as otherwise provided in the
Representation Letter with a Securities Depository for Book-Entry Bonds, the principal and, if applicable, the
Redemption Price of each Bond will be payable only upon presentation and surrender of such Bond at the
Principal Office of the Trustee or any other Paying Agent for such Bond for cancellation; provided that the
Trustee may agree with the Owner of any Bond that such Owner may, in lieu of surrendering the same for a
new Bond, endorse on such Bond a record of partial payment of the principal of such Bond in the form set
forth in the Indenture.
The Trustee will maintain a record of each such partial payment made in accordance with the
foregoing agreement and such record of the Trustee will be conclusive. Such partial payment will be valid
upon payment of the amount thereof to the Owner of such Bond, and the City and the Trustee will be fully
released and discharged from all liability to the extent of such payment regardless of whether such
endorsement has or has not been made upon such Bond by the Owner thereof and regardless of any error or
omission in such endorsement.
Book-Entry Bonds.
(a) Unless otherwise provided with respect to a Series of Bonds in the Supplemental Indenture
authorizing such Series, the Bonds of each Series will be issued as Book-Entry Bonds in fully registered form
with no distribution of physical bonds made to the public. Except as otherwise provided in the Indenture, the
Book-Entry Bonds of each Series will be registered in the name of the Securities Depository or its Nominee as
directed by the Securities Depository. The payment of Book-Entry Bonds and the giving of notices will be
governed by the terms of the Representation Letter with the Securities Depository for the Book-Entry Bonds.
DTC will act as the initial Securities Depository for the Book-Entry Bonds and has designated Cede & Co. as
its Nominee. DTC has represented to the City that it will maintain a book-entry program in recording
ownership interests in the Book-Entry Bonds of its Participants and the ownership interests of a Beneficial
Owner of a Bond will be recorded through book entries on the records of the Participants.
(b) Bonds of each Series which are not Book-Entry Bonds will be delivered to the Owners
thereof as fully registered Bonds in the form specified in the Supplemental Indenture authorizing the issuance
of such Series of Bonds, with the ownership of such Bonds being recorded in the Bond Register.
(c) In the event that DTC or any successor Securities Depository ceases to act as Securities
Depository for Bonds of a Series, then Bonds of such Series in certificated form will be issued to the Owners
in substantially the form of the Bond delivered to the former Securities Depository or its Nominee with
necessary changes to reflect non-book-entry status as approved by the officers of the City executing such
Bonds. The issuance of individual Bonds in certificated form will be accomplished as provided in the
Representation Letter.
(d) With respect to Bonds registered in the Bond Register in the name of a Securities Depository
or a Nominee, the City, the Trustee and each Paying Agent have no responsibility or obligation to any
Participant or to any Beneficial Owner. Without limiting the immediately preceding sentence, none of the
City, the Trustee or any Paying Agent have any responsibility or obligation with respect to: (i) the accuracy of
the records of a Securities Depository, its Nominee or any Participant as to any ownership interest in the
Bonds; (ii) the delivery to any Participant, Beneficial Owner or any other person, other than an Owner as
shown in the Bond Register, of any notice with respect to the Bonds; or (iii) the payment to any Participant,
Beneficial Owner or any other person, other than an Owner as shown in the Bond Register, of any amount with
respect to principal and Purchase Price of, premium, if any, or interest on the Bonds. The City, the Trustee and
each Paying Agent may treat and consider the person in whose name each Bond is registered in the Bond
Register as the absolute Owner of such Bond for the purpose of payment of principal and Purchase Price of,
premium, if any, and interest on such Bond, for the purpose of registering transfers with respect to such Bond,
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and for all other purposes whatsoever. None of the City, the Trustee or any Paying Agent will be affected by
any notice to the contrary. All principal and Purchase Price of, premium, if any, and interest on the Bonds will
be paid only to or upon the order of the respective Owner, as shown in the Bond Register, or their respective
attorneys duly authorized in writing, and all such payments will be valid and effective to fully satisfy and
discharge the City’s obligations with respect to payment of principal and Purchase Price of, Redemption Price,
if any, and interest on the Bonds to the extent of the sum or sums so paid, and none of the City, the Trustee or
any Paying Agent will be affected by any notice to the contrary. No person other than an Owner, as shown in
the Bond Register, will receive a Bond evidencing the obligation of the City to make payments of principal
and Purchase Price of, Redemption Price, if any, and interest pursuant to the Indenture.
(e) Upon delivery by a Securities Depository to the City of written notice to the effect that the
Securities Depository has determined to substitute a new Nominee in place of its current Nominee, and subject
to the provisions in the Indenture with respect to Record Dates, the word Nominee for purposes of the
Indenture refers to such new Nominee of the Securities Depository; and upon receipt of such a notice the City
will promptly deliver a copy of the same to the Trustee.
(f) Notwithstanding any other provision of the Indenture and so long as Book-Entry Bonds are
registered in the name of a Nominee, the City and the Trustee will cooperate with the Securities Depository in
effecting payment of the principal of, Redemption Price, if any, and interest on such Book-Entry Bonds by
arranging for payment in such manner as the Securities Depository may reasonably instruct in writing that
funds for such payments are properly identified and are made available on the date they are due, all in
accordance with the Representation Letter, the provisions of which the Trustee may rely upon to implement the
foregoing procedures.
(g) A Securities Depository for the Book-Entry Bonds may resign upon giving 30 days written
notice of such resignation to the City and the Trustee. The City may terminate the use of the book-entry
system of a Securities Depository for Book-Entry Bonds upon giving 30 days written notice of such
termination to the Securities Depository and the Trustee. Any such resignation or termination will become
effective upon the earlier of the appointment of a successor Securities Depository for Book-Entry Bonds by the
City or the issuance of Bonds which are not Book-Entry Bonds pursuant to the Indenture.
Transfers Outside Book-Entry Program. In the event that the resignation or removal of a Securities
Depository has become effective pursuant to the Indenture, then the City will thereupon discontinue the current
book-entry program for the Book-Entry Bonds with such Securities Depository. In such event, the City will
cause the Trustee to obtain from the former Securities Depository a list showing the interests of the
Participants in the Book-Entry Bonds and will cause such Book-Entry Bonds to be surrendered to the Trustee
on or before the date any replacement Bonds are to be issued. Furthermore, in the event that the City
determines to use a substitute Securities Depository, the City will so notify the Trustee and each Paying Agent
for Book-Entry Bonds. If, prior to the termination of the current Securities Depository’s book-entry system for
the Book-Entry Bonds, the City fails to identify another qualified Securities Depository to replace the current
Securities Depository, then the Book-Entry Bonds will no longer be required to be registered in the name of a
Securities Depository or its Nominee and the City will issue, and the Trustee will authenticate, replacement
Bonds in the appropriate amounts and in whatever name or names the Owners of the Book-Entry Bonds
designate pursuant to the Representation Letter with the former Securities Depository. In the event that the
City determines that the Beneficial Owners of the Bonds are able to obtain physical Bonds through a Securities
Depository, the City may notify the Participants identified by the Securities Depository as having an interest in
the Bonds of the availability of such physical Bonds and the Trustee will authenticate, transfer and exchange
Bonds as required by the Securities Depository in the appropriate names and amounts, which will be in
Authorized Denominations.
Bond Register. The Trustee will keep or cause to be kept, at its Principal Office, sufficient books for
the registration and transfer of the Bonds of each Series which will at all times be open to inspection during
regular business hours by the City upon reasonable notice, and, upon presentation for such purpose, the
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Trustee will, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered
or transferred on said Bond Register, Bonds of each Series as provided in the Indenture.
The City, the Trustee and each Paying Agent may rely on the address of the Owner of each Bond as it
appears on the Bond Register for any and all purposes. It is the duty of the Owner of each Bond to give
written notice to the Trustee of any change in the Owner’s address so that the Bond Register may be revised
accordingly.
Interchangeability of Bonds. Upon surrender of a Bond at the Principal Office of the Trustee, together
with a written instrument of transfer satisfactory to the Trustee and duly executed by the Owner or the Owner’s
attorney duly authorized in writing, may, at the option of the Owner thereof, and upon payment by such Owner
of any charges which the Trustee may make as provided in the Indenture, be exchanged for an equal aggregate
principal amount of Bonds of the same Series, terms and maturity of any other Authorized Denominations.
Negotiability, Transfer and Registry. Each Bond will be transferable only upon the Bond Register,
upon surrender thereof, together with a written instrument of transfer satisfactory to the Trustee, duly executed
by the Owner or the Owner’s duly authorized attorney. Upon the transfer of any such Bond, the City will
execute and the Trustee will authenticate, deliver and register in the Bond Register in the name of the
transferee a new Bond or Bonds of the same aggregate principal amount, Series, terms and maturity as the
surrendered Bond.
Regulations With Respect to Exchanges and Transfers. Subject to the terms of a Representation
Letter with a Securities Depository for Book-Entry Bonds, in all cases in which the privilege of exchanging
Bonds or transferring Bonds is exercised, the City will execute and the Trustee will authenticate and deliver
Bonds in accordance with the provisions of the Indenture relating to such Bonds. All Bonds surrendered in
any such exchanges or transfers will forthwith be delivered to the Trustee and cancelled by the Trustee. Unless
the Indenture relating to such Bonds provides that such transfer or exchange is made without charge to the
Owner, for every such exchange or transfer of Bonds, whether temporary or definitive, the City or the Trustee
may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid
and any other cost incurred by the City or the Trustee with respect to such exchange or transfer.
Prior to any transfer of the Bonds outside the book-entry system (including, but not limited to, the
initial transfer outside the book-entry system) the transferor will provide or cause to be provided to the Trustee
all information that is necessary to allow the Trustee to comply with any applicable tax reporting obligations,
including without limitation any cost basis reporting obligations under Internal Revenue Code Section 6045, as
amended. The Trustee will conclusively rely on the information provided to it and has no responsibility to
verify or ensure the accuracy of such information.
Bonds Mutilated, Destroyed, Stolen or Lost. Subject to the terms of a Representation Letter with a
Securities Depository for Book-Entry Bonds, if any Bond becomes mutilated or is lost, stolen or destroyed, the
City may execute and the Trustee will authenticate and deliver a new Bond of like date of Series, maturity,
principal amount and terms as the Bond so mutilated, lost, stolen or destroyed; provided that: (i) in the case of
such mutilated Bond, such Bond is first surrendered to City or the Trustee; (ii) in the case of any such lost,
stolen or destroyed Bond, there is first furnished evidence of such loss, theft or destruction satisfactory to the
Trustee together with indemnity satisfactory to the Trustee; (iii) all other reasonable requirements of the City
and the Trustee are complied with; and (iv) expenses in connection with such transaction are paid by the
Owner. Any Bond surrendered for exchange will be cancelled. Any such new Bond issued pursuant to the
Indenture in substitution for a Bond alleged to be destroyed, stolen or lost will constitute original additional
contractual obligations on the part of the City, whether or not the Bond so alleged to be destroyed, stolen or
lost be at any time enforceable by anyone, and will be equally payable from the Net Revenues and the other
funds pledged therefor and available under the Indenture on a parity with and entitled to equal and
proportionate benefits with, all other Bonds.
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Temporary Bonds.
(a) Subject to the terms of a Representation Letter with a Securities Depository for Book-Entry
Bonds, until the definitive Bonds are prepared, the City may execute, in the same manner as is provided in the
Indenture with respect to definitive Bonds, and upon the request of the City, the Trustee will authenticate and
deliver, in lieu of definitive Bonds, but subject to the same provisions, limitations and conditions as the
definitive Bonds except as to the exchangeability for Bonds, one or more temporary Bonds substantially of the
tenor of the definitive Bonds in lieu of which such temporary Bond or Bonds are issued, in Authorized
Denominations, and with such omissions, insertions and variations as may be appropriate to temporary Bonds.
The installments of interest payable on such temporary Bonds will be payable in the same manner as interest is
payable on the definitive Bonds in lieu of which such temporary Bonds were issued. The City, at its own
expense, will prepare and execute and, upon the surrender of such temporary Bonds for exchange and the
cancellation of such surrendered temporary Bonds, the Trustee will authenticate and, without charge to the
Owner thereof, deliver in exchange therefor, definitive registered Bonds of the same aggregate Series,
principal amount, terms, maturity and date of issue as the temporary Bonds surrendered. Until so exchanged,
the temporary Bonds of a Series will in all respects be entitled to the same benefits and security as definitive
Bonds authenticated and issued pursuant to the Indenture authorizing the issuance of such Series of Bonds.
(b) Temporary Bonds authorized in more than one denomination, upon surrender thereof at the
Principal Office of the Trustee, may at the option of the Owner thereof, and upon payment by such Owner of
any charges which may be made as provided in the Indenture be exchanged for an equal aggregate principal
amount of temporary Bonds of the same Series, maturity, and containing the same terms, of any of the
Authorized Denominations as requested by such Owner.
(c) All temporary Bonds surrendered in exchange either for another temporary Bond or Bonds or
for a definitive Bond or Bonds will be forthwith cancelled by the Trustee.
Cancellation and Destruction of Bonds. All Bonds paid or redeemed, either at or before maturity, and
all Bonds surrendered for transfer or exchange, will be delivered to the Trustee when such payment,
redemption or surrender is made, and such Bonds, together with all Bonds purchased by the Trustee, will
thereupon be promptly cancelled. Bonds so cancelled may at any time be destroyed by the Trustee, who will
execute a certificate of destruction in duplicate by the signature of one of its authorized officers describing the
Bonds so destroyed, and one executed certificate will be filed with the City and the other executed certificate
will be retained by the Trustee.
REDEMPTION OF BONDS
Redemption at the Direction of the City. In the case of a redemption of Bonds of any Series at the
option or direction of the City, the City will give written notice to the Trustee of the exercise of its option to
redeem Bonds or of its direction to otherwise cause the redemption of Bonds at its direction, and of the
redemption date, principal amounts of the Bonds of such Series and maturity to be redeemed (which Series,
maturities and principal amounts shall be determined by the City in its sole discretion, subject to any
limitations with respect thereto contained in the Supplemental Indenture authorizing such Series of Bonds and
provided that, with respect to any Bond to be redeemed in part, the portion of such Bond which is not to be
redeemed shall be in an Authorized Denomination). The City will provide the Trustee with such notice forty-
five (45) days prior to the redemption date or such shorter period as will be acceptable to the Trustee. In the
event notice of redemption have been given as provided in the Indenture, other than a conditional notice, there
shall be paid on or prior to the redemption date to the Trustee an amount in cash which, in addition to other
moneys, if any, available therefor held by the Trustee, shall be sufficient to redeem on the applicable
redemption date at the Redemption Price, all of the Bonds to be redeemed.
Redemption Otherwise Than at City’s Direction. Whenever by the terms of the Indenture, the Trustee
is required or authorized to redeem Bonds otherwise than at the option or direction of the City and the
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Indenture does not expressly set forth the principal amount of Bonds of each Series and maturity so subject to
redemption to be redeemed, the City may select the principal amounts of the Bonds of each Series and maturity
to be redeemed (which Series, maturities and principal amounts to be redeemed will be determined by the City
in its sole discretion, subject to any limitations with respect thereto contained in the Indenture and provided
that, with respect to any Bond to be redeemed in part, the portion of such Bond which is not to be redeemed is
in an Authorized Denomination) and in the event that the City does not notify the Trustee of such Series,
maturities, and principal amounts, to be redeemed on or before the 45th day preceding the redemption date, the
Trustee will, in its sole discretion, subject to any limitations with respect to the Series, maturity, or principal
amount of Bonds to be redeemed contained in the Indenture, select the Series, maturities and principal amounts
of Bonds to be redeemed, which selection will be conclusive, give the notice of redemption and pay out of
moneys available therefor the Redemption Price thereof to the Owners of the Bonds to be redeemed or to
appropriate Paying Agents in accordance with the terms of the Indenture.
Selection of Bonds to be Redeemed. If less than all of the Outstanding Bonds, or less than all of the
Outstanding Bonds of like Series and maturity, are called for prior redemption, except as otherwise provided
with respect to Credit Provider Bonds in the Supplemental Indenture authorizing such Credit Provider Bonds
or in the applicable Credit Support Agreement or except as otherwise provided with respect to Book-Entry
Bonds in a Representation Letter, the particular Bonds or portions of Bonds to be redeemed will, subject to any
limitations with respect thereto contained in the Indenture, be selected at random by the Trustee in such
manner as the Trustee in its discretion may deem fair and appropriate; provided, however, that the portion of
any Bond of a denomination greater than the minimum Authorized Denomination for the Bonds of a Series
will be redeemed in part only in a principal amount such that the portion of such Bond which is not redeemed
is in an Authorized Denomination for such Series and that, in selecting portions of Bonds of a Series for
redemption, the Trustee will treat each Bond of each Series as representing that number of Bonds of the
minimum Authorized Denomination for such Series which is obtained by dividing the principal amount of
such Bond by the minimum Authorized Denomination for the Bonds of such Series.
Notice of Redemption.
(a) When the Trustee receives notice from the City of the exercise of its option to redeem Bonds
or of its direction to otherwise cause the redemption of Bonds pursuant to the Indenture, and when redemption
of Bonds of a Series is authorized or required pursuant to the Indenture, the Trustee will give notice, in the
name of the City, of the redemption of such Bonds, which notice will be mailed, by first class mail, postage
prepaid, not more than 60 nor less than 30 days before the redemption date to the Owners of any Bonds to be
redeemed (in whole or in part) at their addresses appearing in the Bond Register. Such notice will specify the
Series and maturity date of the Bonds to be redeemed, the redemption date and the place or places where
amounts due upon such redemption will be payable and, if less than all of the Bonds of any like Series and
maturity are to be redeemed, the letters and numbers or other distinguishing marks of such Bonds so to be
redeemed, and, in the case of Bonds to be redeemed in part only, such notice will also specify the respective
portions of the principal amount thereof to be redeemed. Such notice will further state that, except as provided
in clause (b), on such date there will become due and payable upon each Bond to be redeemed the Redemption
Price thereof, or the Redemption Price of the specified portion of the principal amount thereof to be redeemed
in the case of a Bond to be redeemed in part only, and that from and after such date interest on such Bond or
the portion of such Bond to be redeemed will cease to accrue and be payable.
Receipt of such notice is not a condition precedent to the redemption of Bonds and failure of any
Owner of a Bond to receive any such notice or any insubstantial defect in such notice will not affect the
validity of the proceedings for the redemption of Bonds. Any defect in such notice given to the Owners of less
than all of the Bonds to be redeemed will not affect the validity of the proceedings for the redemption of the
Bonds as to which the notice of redemption did not contain such defect.
(b) In the event that funds required to pay the Redemption Price of Bonds to be redeemed at the
option of the City are not on deposit with the Trustee at the time the Trustee gives notice of redemption to the
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Owners of such Bonds, such notice will state that such redemption is conditional upon the receipt by the
Trustee, on or prior to the date fixed for such redemption, of moneys sufficient to pay the Redemption Price of
the Bonds to be redeemed, and that if such moneys have not been so received said notice will be of no force
and effect and the City will not be required to redeem such Bonds. In the event a notice of redemption of
Bonds contains such a condition and such moneys are not so received, the redemption of Bonds as described in
the conditional notice of redemption will not be made and the Trustee will, within a reasonable time after the
date on which such redemption was to occur, give notice to the persons and in the manner in which the notice
of redemption was given that such moneys were not so received and that there will be no redemption of Bonds
pursuant to the conditional notice of redemption.
(c) If upon the expiration of 60 days succeeding any redemption date, any Bonds called for
redemption have not been presented to the Trustee for payment, the Trustee will no later than 90 days
following such redemption date send written notice by first class mail to the Owner of each Bond not so
presented. Failure to mail the notices required by the Indenture to any Owner, or any defect in any notice so
mailed, will not affect the validity of the proceedings for redemption of any Bonds nor impose any liability on
the Trustee.
(d) In addition to the notice of redemption required pursuant to clause (a), if any Bonds are to be
redeemed, then at the written request of an Authorized City Representative received at least 45 days before the
redemption date, at least 30 days before the redemption date, the Trustee will also give redemption notice by:
(i) registered or certified mail, return receipt requested, postage prepaid; (ii) telephonically confirmed facsimile
transmission; or (iii) overnight delivery service, to one of the Information Services. Failure to give the
foregoing notices or any defects therein will not in any manner affect the proceedings for redemption of any
Bonds.
(e) Neither the City nor the Trustee have any responsibility for any defect in the CUSIP number
that appears on any Bonds or in any redemption notice or other notice with respect thereto, and any such
redemption notice or other notice may contain a statement to the effect that CUSIP numbers have been
assigned by an independent service for convenience of reference and that neither the City nor the Trustee will
be liable for any inaccuracy in such numbers.
Partial Redemption of Bonds. Upon surrender of any Bond to be redeemed in part only, the City will
execute, and the Trustee will authenticate and deliver to the Owner of such Bond, at the expense of the City, a
new Bond or Bonds of Authorized Denominations equal in aggregate principal amount to the unredeemed
portion of the Bond surrendered, of the same Series, maturity and terms as the surrendered Bond.
Effect of Notice and Availability of Redemption Money. Subject to the provisions of the Indenture,
notice of redemption having been duly mailed to the Owners of the Bonds to be redeemed (in whole or in part),
as provided in the Indenture, and the amount necessary for the redemption having been made available for that
purpose and being available therefor on the date fixed for such redemption: (a) the Bonds, or portions thereof,
designated for redemption will, on the date fixed for redemption, become due and payable at the applicable
Redemption Price thereof, as provided in the Indenture, anything in such Indenture or in the Bonds to the
contrary notwithstanding; (b) except as otherwise provided in a Representation Letter, upon presentation and
surrender thereof at the Principal Office of the Trustee or another Paying Agent for such Bonds, the Bonds to
be redeemed will be redeemed at the applicable Redemption Price; (c) the Bonds or portions thereof so
designated for redemption will be deemed to be no longer Outstanding and such Bonds or portions thereof will
cease to bear further interest; and (d) after the date fixed for redemption no Owner of any of the Bonds or
portions thereof so designated for redemption will be entitled to any of the benefits of the Indenture, or to any
other rights, except with respect to payment of the Redemption Price thereof from the amounts so made
available.
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ESTABLISHMENT OF FUNDS AND APPLICATION THEREOF
Pledge of Trust Estate. Subject to the application thereof on the terms and conditions provided in the
Indenture, to secure the payment of all the Outstanding Bonds, including Credit Provider Bonds, and the
interest payments becoming due thereon according to their tenor, purport and effect, and to secure the
performance and observance of all of the covenants, agreements and conditions contained in the Outstanding
Bonds, including Credit Provider Bonds, and the Indenture, the City has irrevocably granted a lien on and a
security interest in, and pledges, the Trust Estate to the Trustee, for the benefit of the Owners of the
Outstanding Bonds, including Credit Provider Bonds, which lien on, security interest in and pledge of the
Revenues and amounts in the Light and Power Fund included in the Trust Estate will be on a parity with any
pledge of Revenues and amounts in the Light and Power Fund securing Parity Obligations, including Credit
Support Agreements for Parity Obligations and Qualified Swap Agreements. The lien on and security interest
in and pledge of the Trust Estate constitutes a first pledge of and charge and lien upon the Trust Estate, will
immediately attach and be effective, binding and enforceable against the City, its successors, purchasers of any
of the Trust Estate, creditors and all others asserting rights therein to the extent set forth in, and in accordance
with, the Indenture, irrespective of whether those parties have notice of the lien on, security interest in and
pledge of the Trust Estate and without the need for any physical delivery, recordation, filing or further act.
The grant of a lien on and security interest in, and pledge of, the Trust Estate pursuant to the Indenture is made
pursuant to the Bond Ordinance and Chapter 5.5 of Division 6 of Title 1 (commencing with Section 5450) of
the Government Code of the State.
Funds. To ensure the payment when due and payable, whether at maturity or upon redemption or
upon acceleration, of the principal of, Redemption Price, if any, and interest on the Bonds, there have been
established the following funds and accounts, to be held and maintained by the Trustee and applied as provided
in the Indenture for so long as any of the Bonds are Outstanding:
(a) the City of Vernon Electric System Debt Service Fund, comprised of an Interest Account, a
Principal Account and a Sinking Fund Account;
(b) the City of Vernon Electric System Redemption Fund;
(c) the City of Vernon Electric System Debt Service Reserve Fund;
(d) the City of Vernon Electric System Expense Stabilization Fund; and
(e) the City of Vernon Electric System Rebate Fund.
Debt Service Fund.
(a) From the moneys paid by the City to the Trustee pursuant to the Indenture, the Trustee, upon
receipt of such moneys, will deposit the following amounts in the following specified accounts within the Debt
Service Fund: (1) for deposit in the Interest Account, an amount equal to the interest payable on the
Outstanding Bonds on the applicable Interest Payment Date; (2) for deposit in the Principal Account, an
amount equal to the principal of the Outstanding Bonds maturing on the applicable maturity date; and (3) for
deposit in the Sinking Fund Account, an amount equal to the Sinking Fund Installment due on the applicable
Sinking Fund Installment due date.
(b) From the moneys paid by the City pursuant to the Trustee other than in connection with
regularly scheduled payments on the Bonds or redemption of Bonds, the Trustee, upon receipt of such moneys,
will deposit the following amounts in the following specified accounts within the Debt Service Fund: (1) for
deposit in the Interest Account, an amount equal to the interest on the Outstanding Bonds then payable; and (2)
for deposit in the Principal Account, an amount equal to the principal of the Outstanding Bonds then payable.
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(c) In the event that Bonds which are Term Obligations purchased or redeemed at the option of
the City are deposited with the Trustee for the credit of the Sinking Fund Account not less than 45 days prior
to the due date for any Sinking Fund Installment for such Bonds, such deposit will satisfy (to the extent of
100% of the principal amount of such Bonds) any obligation of the City to make a payment to the Trustee
pursuant to the Indenture with respect to such Sinking Fund Installments. Any Bond so deposited with the
Trustee will be cancelled and will no longer be deemed to be Outstanding for any purpose. Upon making the
deposit with the Trustee of Bonds which are Term Obligations as provided in the Indenture, the City may
specify the dates and amounts of Sinking Fund Installments for such Bonds as to which the City’s obligations
to make a payment to the Trustee pursuant to the Indenture will be satisfied.
(d) Except as provided in the Indenture: (1) amounts deposited in the Interest Account will
remain therein until expended for the payment of interest on the Bonds; (2) amounts deposited in the Principal
Account will remain therein until expended for the payment of principal of the Bonds; and (3) amounts
deposited in the Sinking Fund Account will remain therein until expended for the redemption or payment at
maturity from Sinking Fund Installments of Bonds which are Term Obligations.
(e) The Trustee will apply amounts in the Interest Account to the payment when due of interest
on the Outstanding Bonds. The Trustee will apply amounts in the Principal Account to the payment when due
of principal of the Outstanding Bonds. The Trustee will apply amounts in the Sinking Fund Account to the
redemption (or payment at maturity) of the Bonds which are Term Obligations.
In the event that one or more Paying Agents have been appointed for the Bonds, moneys may be
transferred by the Trustee to such Paying Agents from the appropriate account in the Debt Service Fund for
deposit into a special trust account to ensure the payment when due of the principal of, Redemption Price, if
any, and interest on the Bonds. In the event that any principal of, Redemption Price or interest on, any Bond
has been paid from amounts made available pursuant to a Credit Support Instrument, amounts in the
appropriate accounts in the Debt Service Fund with respect to such Bond, and any such amounts transferred by
the Trustee from the Debt Service Fund to a Paying Agent for such Bond pursuant to the Indenture, will be
paid to the applicable Credit Provider as a reimbursement of the amounts so paid.
Redemption Fund. From the moneys paid by the City pursuant to the Indenture for redemption of
Bonds, the Trustee will deposit in the Redemption Fund an amount equal to the Redemption Price of the
Bonds to be redeemed. Said moneys will be set aside in said Fund and applied on or after the redemption date
to the payment of the Redemption Price of the Bonds to be redeemed and, except as otherwise provided in the
Indenture, will be used only for that purpose. In the event that one or more Paying Agents have been
appointed for the Bonds which are to be redeemed with moneys in the Redemption Fund, amounts in the
Redemption Fund may be transferred from such Fund by the Trustee to the Paying Agent for the Bonds to be
redeemed for deposit into a special trust account held by such Paying Agent to ensure the payment when due
the Redemption Price of the Bonds to be redeemed. In the event that the Redemption Price of a Bond has been
paid by a Credit Provider pursuant to a Credit Support Instrument, amounts in the Redemption Fund with
respect to such Redemption Price, and any such amounts transferred by the Trustee from the Redemption Fund
to a Paying Agent for such Bonds pursuant to the Indenture, will be paid to such Credit Provider as a
reimbursement of the amounts so paid. If, after all of the Bonds designated for redemption have been
redeemed and cancelled or paid and cancelled, there are moneys remaining in the Redemption Fund, said
moneys will be transferred to the Interest Account; provided, however, that if said moneys are part of the
proceeds of Refunding Obligations said moneys will be applied as provided in the Issuing Instrument
authorizing the issuance of such Refunding Obligations.
Debt Service Reserve Fund.
(a) If on any date on which the principal or Redemption Price of, or interest on, Bonds is due, the
amount in the applicable account in the Debt Service Fund available for such payment is less than the amount
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of the principal and Redemption Price of and interest on the Bonds due on such date, the Trustee will apply
amounts from the Debt Service Reserve Fund to the extent necessary to make good the deficiency.
(b) Except as provided in clause (e) below, if on the last Business Day of any month the amount
on deposit in any Debt Service Reserve Fund exceeds the Debt Service Reserve Requirement, such excess will
be applied to the reimbursement of each drawing on a Reserve Financial Guaranty deposited in or credited to
such Fund and to the payment of interest or other amounts due with respect to such a Reserve Financial
Guaranty and any remaining moneys will be deposited in the Interest Account.
(c) Whenever the amount in the Debt Service Reserve Fund (excluding Reserve Financial
Guaranties), together with the amount in the Debt Service Fund, is sufficient to pay in full all of the
Outstanding Bonds in accordance with their terms (including principal or Redemption Price and interest
thereon), the funds on deposit in the Debt Service Reserve Fund will be transferred to the Debt Service Fund.
(d) In the event of the refunding of one or more Bonds (or portions thereof), the Trustee will,
upon the written direction of an Authorized City Representative, withdraw from the Debt Service Reserve
Fund any or all of the amounts on deposit therein (excluding Reserve Financial Guaranties) and deposit such
amounts with itself as Trustee, or the Escrow Agent for the Bonds to be refunded, to be held for the payment
of the principal or Redemption Price, if any, of, and interest on, the Bonds (or portions thereof) being
refunded; provided that such withdrawal may not be made unless: (a) immediately thereafter the Bonds (or
portions thereof) being refunded are deemed to have been paid pursuant to the Indenture; and (b) the amount
remaining in the Debt Service Reserve Fund after such withdrawal (including the amount of any Reserve
Financial Guaranties), taking into account any deposits to be made in the Debt Service Reserve Fund in
connection with such refunding, is not less than the Debt Service Reserve Requirement..
(e) In lieu of the deposits and transfers to the Debt Service Reserve Fund required by the
Indenture, the City may cause to be deposited in the Debt Service Reserve Fund a Reserve Financial Guaranty
or Reserve Financial Guaranties in an amount equal to the difference between the Debt Service Reserve
Requirement and the sums, if any, then on deposit in the Debt Service Reserve Fund or being deposited in such
Fund concurrently with such Reserve Financial Guaranty or Guaranties. The Trustee will draw upon or
otherwise take such action as is necessary in accordance with the terms of the Reserve Financial Guaranties to
receive payments with respect to the Reserve Financial Guaranties (including the giving of notice as required
thereunder): (1) on any date on which moneys are required to be withdrawn from the Debt Service Reserve
Fund and applied to the payment of principal or Redemption Price of, or interest on, any Bonds and such
withdrawal cannot be met by amounts on deposit in the applicable accounts in the Debt Service Reserve Fund;
(2) on the first Business Day which is at least ten days prior to the expiration date of each Reserve Financial
Guaranty, in an amount equal to the deficiency which would exist in the Debt Service Reserve Fund if the
Reserve Financial Guaranty expired, unless a substitute Reserve Financial Guaranty with an expiration date not
earlier than 180 days after the expiration date of the expiring Reserve Financial Guaranty (or the earlier
maturity of all then Outstanding Bonds) is acquired prior to such date or the City deposits funds in the Debt
Service Reserve Fund on or before such date such that the amount in the Debt Service Reserve Fund on such
date (without regard to such expiring Reserve Financial Guaranty) is at least equal to the Debt Service Reserve
Requirement.
If, upon the deposit of a Reserve Financial Guaranty into the Debt Service Reserve Fund pursuant to
the Indenture, there is any amount in the Debt Service Reserve Fund in excess of the Debt Service Reserve
Requirement, such excess amount may be applied to the cost of acquiring such Reserve Financial Guaranty
and, to the extent not so applied, will be transferred to the Interest Account.
Expense Stabilization Fund. Moneys are required to be deposited in the Expense Stabilization Fund in
such amounts, at such times and from such sources as determined by the City in its sole discretion. Moneys on
deposit in the Expense Stabilization Fund may be withdrawn at any time no Event of Default exists upon the
order of an Authorized City Representative and applied to any lawful purpose in connection with the Electric
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System, including without limitation, payment of Operation and Maintenance Expenses, payment of Debt
Service on Parity Obligations, payment of principal, premium or interest on Subordinate Obligations, payment
of Costs of Capital Improvements, payment of the Costs of Issuance of Parity Obligations or payment of the
costs of issuance of Subordinate Obligations, provided, however, that if an Event of Default has occurred and
is continuing, the Trustee will transfer all moneys in the Expense Stabilization Fund first to the Interest
Account, the amount by which the accrued interest on the Outstanding Bonds is greater than the amount then
on deposit in the Interest Account and second to the Principal Account, the balance of the amount then in the
Expense Stabilization Fund.
Rebate Fund. Each Supplemental Indenture authorizing a Series of Bonds which are Tax-Exempt
Securities will establish an account in the Rebate Fund in connection with such Series. Each such account in
the Rebate Fund will have such terms and conditions as provided in the Supplemental Indenture establishing
such account.
Depositories. The Trustee will hold all moneys deposited with it pursuant to the Indenture or may
deposit such moneys with one or more Depositories in trust. All moneys deposited under the provisions of the
Indenture with the Trustee or any Depository will be held in trust and applied only in accordance with the
provisions of the Indenture, and each of the Funds established by the Indenture will be a trust fund for the
purposes of the Indenture.
Deposits. All moneys held by any Fiduciary under the Indenture may be placed on demand or time
deposit, if and as directed by the City, provided that such deposits permit the moneys so held to be available
for use at the time when reasonably expected to be needed. No Fiduciary will be liable for any loss or
depreciation in value resulting from any investment made pursuant to the Indenture. Any such deposit may be
made in the commercial banking department of any Fiduciary or its affiliates which may honor checks and
drafts on such deposit with the same force and effect as if it were not such Fiduciary. All moneys held by any
Fiduciary, as such, may be deposited by such Fiduciary in its banking department on demand or, if and to the
extent directed by the City and acceptable to such Fiduciary, on time deposit, provided that such moneys on
deposit be available for use at the time when reasonably expected to be needed. Such Fiduciary will allow and
credit on such moneys such interest, if any, as it customarily allows upon similar funds of similar size and
under similar condition or as required by law. All moneys deposited with a Fiduciary will be credited to the
particular Fund to which such moneys belong.
Investment of Certain Funds. Moneys held in the Debt Service Fund and the Redemption Fund will
be invested and reinvested by the Trustee to the fullest extent practicable in securities described in clauses (i)
through (iii) of the definition of “Permitted Investments” which mature not later than such times as necessary
to provide moneys when reasonably expected to be needed for payments to be made from such Funds.
Moneys held in the Debt Service Reserve Fund will be invested and reinvested by the Trustee to the fullest
extent practicable in securities described in clauses (i), (ii), (iii), (vii), (x) and (xiii) of the definition of
“Permitted Investments” which mature, or which may be drawn upon without penalty at any time upon not
more than two Business Days’ notice, not later than five years from the time of such investment. Moneys held
in the Expense Stabilization Fund may be invested and reinvested in Permitted Investments which mature, or
which may be drawn upon without penalty at any time upon not more than two Business Days’ notice, not later
than ten years from the time of such investment. The Trustee will make all such investments of moneys held
by it in accordance with directions of an Authorized City Representative, which directions must be consistent
with the Indenture and applicable law, and which directions must be written. In the absence of any such
written investment directions, the Trustee will, unless otherwise provided in the Indenture, invest such moneys
in the money market funds described in clause (iv) of the definition of “Permitted Investments.”
Interest or other income earned on any moneys or investments in any Fund created under the
Indenture will be paid into such Fund. In making any investment in any Permitted Investments with moneys in
any Fund established under the Indenture, the Trustee may combine such moneys with moneys in any other
Fund but solely for the purposes of making such investment in such Investments and provided that any amount
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so combined will be separately accounted for. Nothing in the Indenture prevents any Permitted Investments
acquired as investments of moneys in any Fund from being issued or held in book-entry form on the books of
the Department of the Treasury or the Federal Reserve System of the United States.
Valuation and Sale of Investments. Obligations purchased as an investment of moneys in any Fund
will be deemed at all times to be a part of such Fund and any profit realized from the liquidation of such
investment will be credited to such Fund and any loss resulting from the liquidation of such investment will be
charged to the respective Fund.
In computing the amount in the Debt Service Reserve Fund for any purpose under the Indenture,
obligations purchased as an investment of moneys in the Debt Service Reserve Fund are to be valued at the
amortized cost thereof.
Except as otherwise provided in the Indenture, the Trustee may sell or present for redemption, or
otherwise liquidate any security purchased as an investment, and take all actions necessary to draw funds under
any such investment, whenever necessary in order to provide moneys to meet any payment or transfer from
any Fund held by it or in accordance with directories of an Authorized City Representative, which directions
must be consistent with the Indenture and applicable law and which directions must be written. Any security
purchased as an investment may be credited on a pro-rata basis to more than one Fund and need not be sold in
order to provide for the transfer of amounts from one Fund to another, provided that such obligation is an
appropriate Permitted Investment for the purposes of the Fund to which it is to be transferred. The Trustee will
not be liable or responsible for making any such investment in the manner provided above or for any loss
resulting from any such investment. The City has acknowledged that to the extent that regulations of the
Comptroller of the Currency or other applicable regulatory entity grant the City the right to receive brokerage
confirmations of security transactions as they occur, the City has specifically waived receipt of such
confirmations to the extent permitted by law. The Trustee will furnish the City periodic cash transaction
statements which include detail for all investment transactions made by the Trustee under the Indenture.
COVENANTS AND OBLIGATIONS OF THE CITY
The City has covenanted with the Owners of the Outstanding Bonds and with each Credit Provider as
set forth in the Indenture. Each of said covenants will remain in full force and effect so long as any of the
Bonds are Outstanding and unpaid, any Credit Support Instrument remains outstanding and any Credit
Provider Reimbursement Obligations remain unpaid.
Compliance with Indenture. The City will punctually pay the Bonds in strict conformity with the
terms of the Indenture and the Bonds, and will faithfully observe and perform all of the agreements,
conditions, covenants and terms contained in the Indenture required to be observed and performed by it, which
obligations are absolute and unconditional but which are special obligations of the City as provided in the
Indenture.
Collection of Rates and Charges. The City will have in effect at all times rules and regulations
requiring each consumer or customer located on any premises connected with the Electric System to pay the
rates and charges applicable to the Electric Service provided to such premises and providing for the billing
thereof and for a due date and a delinquency date for each bill. The City may not permit any part of the
Electric System or any facility thereof to be used or taken advantage of free of charge by any corporation, firm
or person, or by any public agency (including the United States of America, the State of California and any
city, county, district, political subdivision, public corporation or agency of any thereof). Nothing in the
Indenture prevents the City, in its sole and exclusive discretion, from permitting other parties from selling
electricity to retail customers within the service area of the Electric System; provided, however, that permitting
such sales do not relieve the City of its obligations under the Indenture.
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Deposit and Application of Revenues. During each Fiscal Year, and subject to the provisions of the
Indenture, the City may apply amounts in the Light and Power Fund, other than the Revenues for such Fiscal
Year, to any lawful purpose as determined by the City; provided that so long as an Event of Default has
occurred and is continuing, or the Trustee otherwise has control of amounts in the Light and Power Fund, no
amounts may be paid from the Light and Power Fund except for Operation and Maintenance Expenses,
amounts required to be paid in such Fiscal Year pursuant to the Indenture and the Issuing Instrument for any
Parity Obligations or the Issuing Instruments for Subordinate Obligations, or when such payment has been
certified by an Independent Engineer as being consistent with Prudent Utility Practice.
Against Encumbrances. The City will pay or cause to be paid when due all sums of money that may
become due or purporting to be due for any labor, services, materials, supplies or equipment furnished, or
alleged to have been furnished, to or for the City in, upon, about or relating to the Electric System and will
keep the Electric System free of any and all liens against any portion of the Electric System. In the event that
any such lien attaches to or is filed against any portion of the Electric System, the City will cause each such
lien to be fully discharged and released at the time the performance of any obligation secured by any such lien
matures or becomes due, except that if the City desires to contest any such lien it may do so if contesting such
lien will not materially impair operation of the Electric System. If any such lien is reduced to final judgment
and such judgment or any process as may be issued for the enforcement thereof is not promptly stayed, or if so
stayed and such stay thereafter expires, the City will forthwith pay or cause to be paid and discharged such
judgment.
Sale or Other Disposition of Property. The City will not sell, transfer or otherwise dispose of any of
the works, plant, properties, facilities or other part or rights of the Electric System or any real or personal
property comprising a part of the Electric System if such sale, transfer or disposition would cause the City to
be unable to satisfy the requirements of the rate covenant that is described under the caption “SECURITY
AND SOURCES OF PAYMENT—Rate Covenant” of this Official Statement.
Operation and Maintenance of the Electric System; Budgets. The City will maintain and preserve the
Electric System in good repair and working order at all times, operate the Electric System in an efficient and
economical manner and pay all Operation and Maintenance Expenses as they become due and payable.
The City will prepare, not later than the last day of each Fiscal Year, a Budget for the Electric System
approved by the City Council setting forth the estimated Revenues, Operation and Maintenance Expenses,
scheduled Debt Service and other payments estimated to be paid from the Revenues and amounts in the Light
and Power Fund during the next succeeding Fiscal Year. The Electric System Budget for any Fiscal Year may
be amended at any time during such Fiscal Year provided that such amended Budget includes all payments
coming due in such Fiscal Year with respect to Obligations payable from Revenues or amounts in the Light
and Power Fund. In the event that the City fails to have a Budget approved by the City Council as required by
the Indenture with respect to any Fiscal Year, then references in the Indenture to the amount of Operation and
Maintenance Expenses included in the Budget as of any time will be deemed to be the Operation and
Maintenance Expenses in the latest Budget approved by the City Council as adjusted for an inflation factor
equal to 10% for each Fiscal Year from the approval of such Budget by the City Council to the applicable time
of determination of the Operation and Maintenance Expenses included in the Budget.
Insurance. The City will procure and maintain such insurance relating to the Electric System which it
deems advisable or necessary to protect its interests and the interests of the Trustee and the Owners of the
Bonds, which insurance affords protection in such amounts and against such risks as are usually covered in
connection with public electric utility systems similar to the Electric System; provided that any such insurance
may be maintained under a self-insurance program so long as such self-insurance is maintained in the amounts
and manner as is, in the opinion of an accredited actuary, actuarially sound. All policies of insurance required
to be maintained under the Indenture must provide that the Trustee be given 30 days’ written notice of any
intended cancellation thereof or reduction of coverage provided thereby.
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Accounting Records; Financial Statements and Other Reports.
(a) The City will keep appropriate accounting records in which complete and correct entries are
made of all transactions relating to the Electric System, which records are available for inspection by the
Trustee at reasonable hours and under reasonable conditions.
(b) The City will prepare and file with the Trustee annually within 180 days after the close of
each Fiscal Year (commencing with the Fiscal Year ending June 30, 2008): (1) financial statements of the City
for such Fiscal Year prepared in accordance with Generally Accepted Accounting Principles, together with an
Accountant’s Report thereon; and (2) a detailed report as to all insurance policies maintained and self-
insurance programs maintained by the City with respect to the Electric System as of the close of such Fiscal
Year, including the names of the insurers which have issued the policies and the amounts thereof and the
property or risks covered thereby.
Payment of Taxes and Compliance with Governmental Regulations. The City will pay and discharge
all taxes, assessments and other governmental charges which may be lawfully imposed upon the Electric
System or any part thereof when the same become due. The City will duly observe and conform with all valid
regulations and requirements of any governmental authority relative to the operation of the Electric System or
any part thereof, but the City is not required to comply with any regulations or requirements so long as the
validity or application thereof is contested in good faith and contesting such validity or application does not
materially impair the operations or financial condition of the Electric System or the performance of the City
under the Indenture and all Outstanding Bonds.
Tax Covenants.
(a) The City has covenanted it will not take any action, or fail to take any action, if any such
action or failure to take action would adversely affect the Tax-Exempt status of interest on any Bond under
Section 103 of the Code. Without limiting the generality of the foregoing, the City will comply with the
requirements of the Tax Certificate, if any, delivered in connection with the issuance of each Series of Bonds.
In the event that at any time the City is of the opinion that, in order to comply with the foregoing
obligations, it is necessary or helpful to restrict or limit the yield on the investment of any moneys in any of the
Funds held by the Trustee pursuant to the Indenture, the City will so instruct the Trustee in writing, and cause
the Trustee to take such action as may be necessary in accordance with such instructions.
(b) Notwithstanding any provisions of the Indenture, if the City provides to the Trustee an
Opinion of Bond Counsel to the effect that any specified action required under the Indenture or a Tax
Certificate is no longer required or that some further or different action is required to maintain the Tax-Exempt
status of the Bonds under Section 103 of the Code, the City and the Trustee may conclusively rely on such
opinion in complying with the requirements of the Indenture and of the applicable Tax Certificate, and the
covenants under the Indenture will be deemed to be modified to that extent.
(c) The foregoing covenants will survive payment in full or discharge of the Bonds.
AMENDMENTS TO INDENTURE
Amendments Permitted.
(a) Subject to the provisions of the Indenture or of any Supplemental Indenture, the rights and
obligations of the City and of the Owners of the Outstanding Bonds and of the Fiduciaries may be modified,
amended or supplemented from time to time and at any time by a Supplemental Indenture or Supplemental
Indentures, with the written consent of each Credit Provider whose consent is required by a Supplemental
Indenture or a Credit Support Agreement, when the written consent of the Owners of at least a majority in
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aggregate principal amount of the Bonds then Outstanding have been filed with the Trustee; or if less than all
of the Outstanding Bonds are affected, the written consent of the Owners of at least a majority in aggregate
principal amount of all affected Outstanding Bonds; provided that if such modification, amendment or
supplement will, by its terms, not take effect so long as any Bonds of any particular Series and maturity remain
Outstanding, and, with respect to Bonds which are Tender Indebtedness if the conditions of the Indenture are
satisfied, the consent of the Owners of such Bonds will not be required and such Bonds will not be deemed to
be Outstanding for the purpose of any the calculation of Outstanding Bonds for purposes of the Indenture. No
such modification, amendment or supplement may: (1) reduce the aforesaid percentage of Bonds the consent
of the Owners of which is required to effect any such modification, amendment or supplement without the
consent of the Owners of all of the Bonds then Outstanding; (2) extend the fixed maturity of any Bond, or
reduce the principal amount thereof, or reduce the amount of any Sinking Fund Installment therefor, or extend
the due date of any such Sinking Fund Installment, or reduce the rate of interest on any Bond or extend the
time of payment of interest thereon, without the consent of the Owner of each Bond so affected; (3) except as
otherwise provided with respect to a Bond constituting Tender Indebtedness in the Supplemental Indenture
authorizing such Bond and subject to the satisfaction of the conditions of the Indenture, reduce the Redemption
Price due on the redemption of any Bond or change the date or dates when any Bond is subject to redemption;
or (4) modify the rights or obligations of any Fiduciary without the consent of such Fiduciary.
It is not necessary for the consent of the Owners to approve the particular form of any Supplemental
Indenture, but it is sufficient if such consent approves the substance thereof.
Unless waived by the Owner of an affected Bond or Bonds, prior to the entry into any Supplemental
Indenture by the City and the Trustee for any of the purposes of the Indenture, the City will cause notice of the
proposed Supplemental Indenture to be mailed, by first class mail, postage prepaid, to the Owners of all
Outstanding Bonds (or the affected Outstanding Bonds) at their addresses appearing on the Bond Register.
Such notice will briefly set forth the nature of the proposed Supplemental Indenture and state that copies
thereof are on file at the office of the Trustee for inspection by each Owner of an Outstanding Bond.
Whenever, at any time after the date of the mailing of notice of the proposed entry into a
Supplemental Indenture pursuant to the Indenture, the City has received an instrument or instruments in
writing executed in accordance with the Indenture by or on behalf of the Owners of not less than a majority in
aggregate principal amount of the Bonds then Outstanding, or if less than all of the Outstanding Bonds are
affected, by the Owners of not less than a majority in aggregate principal amount of the affected Outstanding
Bonds, which instrument or instruments refers to the proposed Supplemental Indenture described in the notice
of the proposed Supplemental Indenture and consents to such Supplemental Indenture in substantially the form
referred to in such notice, thereupon, but not otherwise, the City and the Trustee may enter into such
Supplemental Indenture in substantially such form, without liability or responsibility to any Owner of any
Bond, whether or not such Owner has consented thereto.
(b) The Master Indenture or any Supplemental Indenture may be supplemented from time to time
and at any time by a Supplemental Indenture or Supplemental Indentures, which the City and the Trustee may
enter into with the consent of each Credit Provider whose consent is required by a Supplemental Indenture or a
Credit Support Agreement but without the consent of the Owner of any Bond, to provide for the issuance of a
Series of Additional Bonds or a Series of Refunding Bonds in accordance with the terms and conditions of the
Master Indenture, and establishing the terms and conditions thereof, including the rights of any Credit Provider
for such Additional Bonds or Refunding Bonds, which may include permitting such Credit Provider to act for
and on behalf of the Owners of such Additional Bonds or Refunding Bonds for any or all purposes of the
Indenture except that no such Credit Provider will be authorized to extend the fixed maturity of any Bond, or
reduce the principal amount thereof, or reduce the amount of any Sinking Fund Installment therefor, or extend
the due date of any such Sinking Fund Installment, or reduce the rate of interest on any Bond or extend the
time of payment of interest thereon, without the consent of the Owner of each Bond so affected; or except as
otherwise provided with respect to a Bond constituting Tender Indebtedness in the Supplemental Indenture
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authorizing such Bond and subject to the satisfaction of the conditions of the Indenture, reduce the Redemption
Price due on the redemption of any Bond or change the date or dates when any Bond is subject to redemption.
(c) The Master Indenture and any Supplemental Indenture and the rights and obligations of the
City, the Fiduciaries and the Owners of the Outstanding Bonds may also be modified, amended or
supplemented from time to time and at any time by a Supplemental Indenture or Supplemental Indentures,
which the City and the Trustee may enter into with the consent of each Credit Provider whose consent is
required by a Supplemental Indenture or a Credit Support Agreement but without the consent of any Owners
of Bonds (but with the consent of any affected Fiduciary), so long as such modification, amendment or
supplement does not materially, adversely affect the interests of the Owners of the Outstanding Bonds,
including without limitation, for any one or more of the following purposes:
(1) to add to the covenants and agreements of the City contained in the Master Indenture
or a Supplemental Indenture other covenants and agreements thereafter to be observed, or to surrender any
right or power in the Indenture reserved to or conferred upon the City;
(2) to pledge, provide or assign any additional security for the Bonds (or any portion
thereof), including transferring control of the amounts in the Light and Power Fund to the Trustee; provided
that if the City transfers control of the amounts in the Light and Power Fund to the Trustee, the Trustee will
return such control at the request of the City only if no Event of Default has occurred and is continuing and if
such return has been consented to by the Owners of a majority in aggregate principal amount of the Bonds then
Outstanding and with the consent of each Credit Provider whose consent is required by a Supplemental
Indenture or a Credit Support Agreement;
(3) to add to the covenants and agreements of the City contained in the Master Indenture
or a Supplemental Indenture other covenants and agreements thereafter to be observed, to pledge, provide or
assign any security for the Bonds (or any portion thereof), or to surrender any right or power in the Indenture
reserved to or conferred upon the City;
(4) to make such provisions for the purpose of curing any ambiguity, inconsistency or
omission, or of curing or correcting any defective provision, contained in the Master Indenture or a
Supplemental Indenture, or in regard to matters or questions arising under the Master Indenture or a
Supplemental Indenture, as the City may deem necessary or desirable; or
(5) to modify, amend or supplement the Master Indenture or a Supplemental Indenture in
such manner as to permit the qualification of the Indenture under the Trust Indenture Act of 1939, as amended,
or any similar federal statute later in effect, and to add such other terms, conditions and provisions as may be
permitted by said act or similar federal statute.
(d) Notwithstanding anything to the contrary in the Indenture, the provisions of the Master
Indenture or any Supplemental Indenture may also be modified, amended or supplemented by a Supplemental
Indenture or Supplemental Indentures, including amendments which would otherwise be described in clause
(a) above, without the consent of the Owners of Bonds constituting Tender Indebtedness if either: (1) the
effective date of such Supplemental Indenture is a date on which such Bonds are subject to mandatory tender
for purchase pursuant to the Indenture; or (2) the notice described in the third paragraph of clause (a) is given
to Owners of such Bonds at least 30 days before the effective date of such Supplemental Indenture, and on or
before such effective date, the Owners of such Bonds have the right to demand purchase of such Bonds
pursuant to the Indenture.
(e) If the Supplemental Indenture authorizing the issuance of a Series of Bonds provides that a
Credit Provider for all or any portion of the Bonds of such Series has the right to consent to Supplemental
Indentures which require the consent of the Owners of the Bonds of such Series pursuant to the Indenture, then
for the purposes of sending notice of any proposed Supplemental Indenture and for determining whether the
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Owners of the requisite percentage of Bonds have consented to such Supplemental Indenture, but subject to the
provisions of the Indenture, references to the Owners of such Bonds will be deemed to be to the applicable
Credit Provider.
(f) For purposes of the Indenture, it is not necessary that consents of the Owners of any particular
percentage of Outstanding Bonds of any affected Series be obtained but it is sufficient for purposes of the
Indenture if the consent of the Owners of a majority in aggregate principal amount of the combination of
affected Outstanding Bonds is obtained.
(g) Notwithstanding anything to the contrary contained in the Indenture, if authorized by the
Supplemental Indenture authorizing the issuance of a Bond constituting Tender Indebtedness, any premium
due on the redemption of such Bond and the date or dates when such Bond is subject to redemption may be
modified or amended as provided in such Supplemental Indenture if either: (1) the effective date of such
modification or amendment is a date on which such Bond is subject to mandatory tender for purchase pursuant
to such Supplemental Indenture; or (2) notice of such modification or amendment has been mailed to the
Owner of such Bond at the address set forth in the Bond Register at least 30 days before the effective date of
such modification or amendment and on or before such effective date, the Owner of such Bond has the right to
demand purchase of such Bond pursuant to such Supplemental Indenture.
Effect of Supplemental Indenture. Upon the City and the Trustee entering into any Supplemental
Indenture pursuant to the Indenture, the Indenture will be deemed to be modified, amended or supplemented in
accordance therewith, and the respective rights, duties and obligations under the Indenture of the City, the
Fiduciaries and all Owners of Outstanding Bonds will thereafter be determined, exercised and enforced subject
in all respects to such modification, amendment and supplement, and all the terms and conditions of any such
Supplemental Indenture will be deemed to be part of the terms and conditions of the Indenture for any and all
purposes. Except for Supplemental Indentures requiring the consent of such Owner pursuant to the Indenture,
upon the City and the Trustee entering into any Supplemental Indenture pursuant to the Indenture, no Owner of
any Bond has any right to object to the entry into such Supplemental Indenture by the City and the Trustee, or
to object to any of the terms and provisions contained therein or the operation thereof or in any manner to
question the propriety of the entry into such Supplemental Indenture, or to enjoin or restrain the City or the
Trustee from entering into the same or to enjoin or restrain the City or the Trustee from taking any action
pursuant to the provisions thereof whether or not such Owner gave his consent to such Supplemental
Indenture.
Bonds Owned by City. For purposes of the Indenture, Bonds owned or held by or for the account of
the City, or any funds of the City, will not be deemed Outstanding for the purpose of consent or other action or
any calculation of Outstanding Bonds provided for in the Indenture, and the City is not entitled with respect to
such Bonds to give any consent or take any other action provided for in the Indenture as an Owner of Bonds.
At the time of any consent or other action taken under the Indenture, the City will furnish the Trustee a
certificate of an Authorized City Representative upon which the Trustee may rely, describing all Bonds so to
be excluded.
Notation on Bonds. Bonds authenticated and delivered after the effective date of any Supplemental
Indenture entered into by the City and the Trustee as provided in the Indenture may bear a notation by
endorsement or otherwise in a form approved by the City as to such action, and in that case upon demand of
the Owner of any Bond Outstanding on such effective date and presentation of the Bond for the purpose at the
Principal Office of the Trustee or upon any transfer or exchange of any Bond Outstanding on such effective
date, suitable notation will be made on such Bond or upon any Bond issued upon any such transfer or
exchange by the Trustee as to any such action.
CONCERNING THE FIDUCIARIES
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Trustee; Acceptance of Duties. The Trustee will signify its acceptance of the duties and obligations
imposed upon it by the Indenture, including the duties of Paying Agent for the Bonds, by the execution and the
delivery of the Master Indenture to the City and by such execution and delivery the Trustee will be deemed to
have accepted such duties and obligations with respect to all the Bonds thereafter to be issued, but only,
however, upon the terms and conditions set forth in the Indenture, and no implied covenants may be read into
the Indenture against the Trustee.
Paying Agents; Appointment and Acceptance of Duties. The City has appointed the Trustee as a
Paying Agent for the Bonds of each Series, and may at any time or from time to time appoint one or more
other Paying Agents having the qualifications set forth in the Indenture as an additional Paying Agent for the
Bonds of one or more Series. Each Paying Agent other than the Trustee will signify its acceptance of the
duties and obligations imposed upon it by the Indenture by executing and delivering to the City and to the
Trustee a written acceptance thereof. The Principal Offices of the Paying Agents are designated as the
respective offices or agencies of the City for the payment of the principal and any applicable Redemption Price
of the Bonds.
Responsibilities of Fiduciaries.
(a) Any recitals of fact contained in the Indenture and in the Bonds will be taken as the
statements of the City and no Fiduciary assumes any responsibility for the correctness of the same. No
Fiduciary makes any representations as to the validity or sufficiency of the Indenture or of any Bonds issued
thereunder or as to the security afforded by the Indenture, and no Fiduciary will incur any liability in respect
thereof. No Fiduciary will be responsible for or have any liability with respect to the Electric System or any
act or omission of the City with respect thereto. The Trustee is, however, responsible for its representation
contained in its certificate of authentication on the Bonds. No Fiduciary is under any responsibility or duty
with respect to the application of any moneys paid by such Fiduciary in accordance with the provisions of the
Indenture. No Fiduciary is under any obligation or duty to perform any act which would involve it in expense
or liability or to institute or defend any suit in respect thereof, or to advance any of its own moneys, unless
properly indemnified. Subject to the provisions of the Indenture, no Fiduciary will be liable in connection with
the performance of its duties under the Indenture except for its own negligence or willful misconduct.
(b) The Trustee, prior to the occurrence of an Event of Default and after the curing of all Events
of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically
set forth in the Indenture. In case an Event of Default has occurred (which has not been cured) the Trustee will
exercise such of the rights and powers vested in it by the Indenture, and use the same degree of care and skill
in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own
affairs. Any provision of the Indenture relating to action taken or to be taken by the Trustee or to evidence
upon which the Trustee may rely will be subject to the provisions of the Indenture.
Without limiting the generality of the foregoing:
(1) The Trustee is not liable for any error of judgment made in good faith by any officer of the
Trustee, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts.
(2) The Trustee is not liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction of a Credit Provider or a Reserve Financial Guaranty Provider or the
Owners of 25% in aggregate principal amount of the Outstanding Bonds relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under the Indenture.
(3) No provision of the Indenture requires the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties under the Indenture, or in the
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exercise of any of its rights or powers, if it has reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured to it.
(4) The Trustee is under no obligation to exercise any of the rights or powers vested in it by the
Indenture at the request or direction of any of the Owners, a Credit Provider or a Reserve Financial Guaranty
Provider pursuant to the Indenture (except for declaring an acceleration of the Bonds or requesting credit
and/or liquidity support pursuant to a Credit Support Instrument), unless such Owners, such Credit Provider or
such Reserve Financial Guaranty Provider have offered to the Trustee reasonable security or indemnity against
the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
(5) The Trustee is not bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, coupon, facsimile transmission, electronic mail or other paper or document but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee determines to make such further inquiry or investigation, it will be entitled to examine the books,
records and premises of the City, personally or by agent or attorney.
(6) The Trustee is not required to take notice of and will not be deemed to have knowledge of any
Event of Default (other than a payment or covenant Event of Default specified in the Indenture) or any event
which would, with the passage of time, the giving of notice, or both, constitute an Event of Default, unless the
Trustee has been notified of such Event of Default or other event by the City, a Credit Provider or a Reserve
Financial Guaranty Provider, or the Owners of 10% in aggregate principal amount of Bonds Outstanding.
(7) The Trustee is not responsible for any moneys or funds held by the City), or for monitoring
the accounting and investment practices of the City, other than requiring the delivery of the Annual Budget and
annual financial statements and reports pursuant to the Indenture.
(8) The Trustee may perform its duties under the Indenture through agents and attorneys and the
Trustee is not liable for the negligence or misconduct on the part of any agent or attorney appointed with due
care by it under the Indenture if the City has a right to proceed directly against such agent or attorney for any
such negligence or misconduct.
(9) In no event will the Trustee be liable for any failure or delay in the performance of its
obligations under the Indenture because of circumstances beyond its control, including, but not limited to, acts
of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action,
including any laws, ordinances, regulations, governmental action or the like which delay, restrict or prohibit
the providing of services contemplated by the Indenture.
(10) The Trustee has no responsibility with respect to any information, statement, or recital in any
official statement, offering memorandum or any other disclosure material prepared or distributed with respect
to the Bonds.
(11) The Trustee has the right to accept and act upon instructions, including funds transfer
instructions (“Instructions”) given pursuant to the Indenture and delivered using Electronic Means (“Electronic
Means” means the following communications methods: e-mail, facsimile transmission, secure electronic
transmission containing applicable authorization codes, passwords and/or authentication keys issued by the
Trustee, or another method or system specified by the Trustee as available for use in connection with its
services under the Indenture); provided, however, that the City will provide to the Trustee an incumbency
certificate listing officers with the authority to provide such Instructions (“Authorized Officers”) and
containing specimen signatures of such Authorized Officers, which incumbency certificate will be amended by
the City whenever a person is to be added or deleted from the listing. If the City elects to give the Trustee
Instructions using Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the
Trustee’s understanding of such Instructions will be deemed controlling. The City has understood and agreed
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that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee will
conclusively presume that directions that purport to have been sent by an Authorized Officer listed on the
incumbency certificate provided to the Trustee have been sent by such Authorized Officer. The City is
responsible for ensuring that only Authorized Officers transmit such Instructions to the Trustee and that the
City and all Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable
user and authorization codes, passwords and/or authentication keys upon receipt by the City. The Trustee will
not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and
compliance with such Instructions notwithstanding the fact that such directions conflict or are inconsistent with
a subsequent written instruction. The City has agreed: (i) to assume all risks arising out of the use of
Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the Trustee
acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully
informed of the protections and risks associated with the various methods of transmitting Instructions to the
City and that there may be more secure methods of transmitting Instructions than the method(s) selected by the
City; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions
provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances;
and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized use of the
security procedures.
(12) Whenever in the administration of the trusts imposed upon it by the Indenture the Trustee
deems it necessary or desirable that a matter be proved or established prior to taking or suffering any action
under the Indenture, such matter (unless other evidence in respect thereof is specifically prescribed in the
Indenture) may be deemed to be conclusively proved and established by a certificate of the Authority, and such
certificate will be full warrant to the Trustee for any action taken or suffered in good faith under the provisions
of the Indenture in reliance upon such certificate, but in its discretion the Trustee may, in lieu thereof, accept
other evidence of such matter or may require such additional evidence as it may deem reasonable.
(13) The Trustee’s rights to immunities and protection from liability under the Indenture and its
rights to payment of its fees and expenses will survive its resignation or removal and final payment or
defeasance of the Bonds. All indemnifications and releases from liability granted in the Indenture to the
Trustee will extend to the directors, officers, employees and agents of the Trustee.
Whether or not therein expressly provided, every provision of the Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee will be subject to the foregoing provisions.
Evidence on Which Fiduciaries May Act.
(a) Each Fiduciary, upon receipt of any notice, resolution, request, requisition, consent, order,
certificate, report, opinion, bond, or other paper or document furnished to it pursuant to any provision of the
Indenture, will examine such instrument to determine whether it conforms to the requirements, if any, of the
Indenture and will be protected in acting upon any such instrument believed by it to be genuine and to have
been signed or presented by the proper party or parties. Each Fiduciary may consult with counsel, who may or
may not be Bond Counsel or counsel to the City, and the opinion of such counsel will be full and complete
authorization and protection in respect of any action taken or suffered by it under the Indenture in good faith
and in accordance therewith.
(b) Whenever any Fiduciary deems it necessary or desirable that a matter be proved or
established prior to taking or suffering any action under the Indenture, such matter (unless other evidence in
respect thereof is specifically prescribed in the Indenture) may be deemed to be conclusively proved and
established by a certificate of an Authorized City Representative, and such certificate will be full warrant for
any action taken or suffered in good faith under the provisions of the Indenture upon the faith thereof; but in its
discretion the Fiduciary may in lieu thereof accept other evidence of such fact or matter or may require such
further or additional evidence as to it may seem reasonable.
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(c) Except as otherwise expressly provided in the Indenture, any request, requisition, order,
notice or other direction required or permitted to be furnished pursuant to any provision of the Indenture by the
City to any Fiduciary will be sufficiently executed in the name of the City by an Authorized City
Representative.
Compensation. The City will cause to be paid to each Fiduciary from time to time reasonable
compensation for all services rendered under the Indenture, and also all reasonable expenses, charges, counsel
fees and other disbursements, including those of its attorneys, agents, and employees, incurred in and about the
performance of their powers and duties under the Indenture; provided, however, that so long as any Bonds
remain Outstanding or any amounts due to a Credit Provider under a Credit Support Agreement or a Reserve
Financial Guaranty Provider under a Reserve Financial Guaranty, no Fiduciary will have a lien therefor on any
and all funds at any time held by it under the Indenture. Subject to the provisions of the Indenture, the City has
further agreed to indemnify and save each Fiduciary harmless against any losses, expenses (including legal
fees and expenses) and liabilities which it may incur arising out of or in the exercise and performance of its
powers and duties under the Indenture or in any way arising out of the Electric System or the transactions
contemplated by the Indenture, and which are not due to its negligence or willful misconduct.
Certain Permitted Acts. Any Fiduciary may become the Owner of any Bonds, with the same rights it
would have if it were not a Fiduciary. To the extent permitted by law, any Fiduciary may act as depositary for,
and permit any of its officers or directors to act as a member of or in any other capacity with respect to, any
committee formed to protect the rights of the Owners of the Bonds or to effect or aid in any reorganization
growing out of the enforcement of the Bonds or the Indenture, whether or not any such committee represents
the Owners of a majority in principal amount of the Bonds then Outstanding.
Resignation of Trustee. The Trustee may at any time resign and be discharged of the duties and
obligations created by the Indenture by giving not less than 60 days written notice to the City, each Credit
Provider and each Reserve Financial Guaranty Provider, specifying the date when such resignation will take
effect; provided that no such resignation will take effect until a successor has been appointed in accordance
with the Indenture.
Removal of Trustee. The Trustee may be removed: (a) with the consent (to the extent required by a
Supplemental Indenture) of each Credit Provider and each Reserve Financial Guaranty Provider, at any time
when no Event of Default has occurred and is continuing and when no event has occurred which, with notice
or the passage of time, would become an Event of Default which has not been cured, by an instrument in
writing signed by an Authorized City Representative and filed with the Trustee; or (b) with the consent (to the
extent required by a Supplemental Indenture) of each Credit Provider and each Reserve Financial Guaranty
Provider, at any time by an instrument or concurrent instruments in writing, filed with the Trustee, and signed
by the Owners of a majority in principal amount of the Bonds then Outstanding or their attorneys-in-fact duly
authorized, excluding any Bonds held by or for the account of the City; or (c) with the consent (to the extent
required by a Supplemental Indenture,) of each Credit Provider and each Reserve Financial Guaranty Provider,
at any time by an instrument in writing signed by an Authorized City Representative and filed with the
Trustee, for any breach of its fiduciary duties under the Indenture; provided that no such removal will be
effective until 30 days have lapsed from the filing of such instrument with the Trustee and until a successor has
been appointed in accordance with the Indenture.
Appointment of Successor Trustee; Financial Qualifications of Successor Trustee.
(a) In case at any time the Trustee resigns or is removed or becomes incapable of acting, or is
adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of the Trustee, or of its property is
appointed, or if any public officer takes charge or control of the Trustee or of its property or affairs, a
successor may be appointed by the Owners of a majority in principal amount of the Bonds then Outstanding,
excluding any Bonds held by or for the account of the City, with (to the extent required by a Supplemental
Indenture) the consent of each Credit Provider and each Reserve Financial Guaranty Provider, by an
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instrument or concurrent instruments in writing signed and acknowledged by such Owners of the Bonds or by
their attorneys-in-fact duly authorized and delivered to such successor Trustee, notification thereof being given
to the City and the predecessor Trustee; provided, nevertheless, that unless a successor Trustee has been
appointed by the Owners of the Bonds as aforesaid, the City, by a duly executed written instrument signed by
an Authorized City Representative will forthwith appoint a Trustee to replace such resigning Trustee or to fill
such vacancy until a successor Trustee is appointed by the Owners of the Bonds as authorized in the Indenture.
Any successor Trustee appointed by the City will, immediately and without further act, be superseded by the
Trustee appointed by the Owners of the Bonds. Any resignation or removal of the Trustee and appointment of
a successor Trustee will become effective only upon acceptance of appointment by the successor Trustee.
(b) If in a proper case no appointment of a successor Trustee is made pursuant to the foregoing
provisions of the Indenture within 45 days after the Trustee has given to the City written notice as provided in
the Indenture or after a vacancy in the office of the Trustee has occurred by reason of its inability to act,
removal, or for any other reason whatsoever, the Trustee (in the case of its resignation under the Indenture) or
the Owner of any Bond (in any case) may apply to any court of competent jurisdiction to appoint a successor
Trustee. Said court may thereupon, after such notice, if any, as such court may deem proper, appoint a
successor Trustee.
(c) The Trustee appointed under the provisions of the Indenture or any successor to the Trustee
must be a bank or trust company organized under the laws of any state of the United States or national banking
association, doing business and having its principal corporate trust office in New York, New York, or Chicago,
Illinois, or Los Angeles, California, or San Francisco, California, duly authorized to exercise trust powers and
subject to examination by federal or state authority. Each successor Trustee will have capital stock and surplus
aggregating at least $50,000,000, or have all of its obligations under the Indenture guaranteed by a bank or
trust company organized under the laws of the United States, or any state thereof, with a capital stock and
surplus or net worth of $50,000,000, if there be such a bank or trust company or national banking association
willing and able to accept the office on reasonable and customary terms and authorized by law to perform all
the duties imposed upon it by the Indenture. If such bank, national banking association, or trust company
publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or
examining authority, then for the purposes of the Indenture the combined capital and surplus of such bank,
trust company, or national banking association will be deemed to be its combined capital and surplus set forth
in its most recent report of condition so published.
Transfer of Rights and Property to Successor Trustee. Any successor Trustee appointed under the
Indenture will execute, acknowledge and deliver to its predecessor Trustee and the City an instrument
accepting such appointment, and thereupon such successor Trustee, without any further act, deed or
conveyance, will become fully vested with all moneys, estates, properties, rights, power, duties and obligations
of such predecessor Trustee, with like effect as if originally named as Trustee; but the Trustee ceasing to act
will nevertheless, at the written request of the City, or of the successor Trustee, execute, acknowledge, deliver,
file and record such instrument of conveyance and further assurance and do such other things as may
reasonably be required for more fully and certainly vesting and confirming in such successor Trustee all the
right, title and interest of the predecessor Trustee in and to any property held by it under the Indenture or
covered by the pledge of the Indenture, and will pay over, assign and deliver to the successor Trustee any
money or other property subject to the trust and conditions in the Indenture set forth. Should any deed,
conveyance or instrument in writing from the City be required by such successor Trustee for more fully and
certainly vesting in and confirming to such successor Trustee any such lien, estates, rights, power and duties,
any and all such deeds, conveyances and instruments in writing will, on request, and so far as may be
authorized by law, be executed, acknowledged and delivered by the City. Any such successor Trustee will
promptly notify the Paying Agents of its appointment as Trustee.
Merger or Consolidation. Any company into which a Fiduciary may be merged or converted or with
which it may be consolidated or any company resulting from any merger, conversion or consolidation to which
it is a party or any company to which any Fiduciary may sell or transfer all or substantially all of its corporate
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trust business, provided that such company is a bank or trust company organized under the laws of any state of
the United States or a national banking association, will satisfy the applicable standards of a successor set forth
in the Indenture, and will be authorized by law to perform all the duties imposed upon it by the Indenture, will
be the successor to such Fiduciary without the execution or filing of any paper or the performance of any
further act.
Adoption of Authentication. In case any of the Bonds contemplated to be issued under the Indenture
have been authenticated but not delivered, any successor Trustee may adopt the certificate of authentication of
any predecessor Trustee so authenticating such Bonds and deliver such Bonds so authenticated; and in case
any of the said Bonds have not been authenticated, any successor Trustee may authenticate such Bonds in the
name of the predecessor Trustee, or in the name of the successor Trustee, and in all such cases such certificate
will have the full force which it is anywhere in said Bonds or provided in the Indenture that the certificate of
the Trustee has.
Resignation or Removal of Paying Agent and Appointment of Successor.
(a) Any Paying Agent may at any time resign and be discharged of the duties and obligations
created by the Indenture by giving at least 60 days written notice to the City, the Trustee, each Credit Provider,
each Reserve Financial Guaranty Provider and the other Paying Agents. Any Paying Agent may be removed
at any time by an instrument filed with such Paying Agent and the Trustee and signed by an Authorized City
Representative. Any successor Paying Agent will be appointed by the City with the approval of the Trustee
(and each Credit Provider and each Reserve Financial Guaranty Provider required by a Supplemental
Indenture) and will be a commercial bank or trust company organized under the laws of any state of the United
States or a national banking association, having capital stock and surplus aggregating at least $25,000,000, and
willing and able to accept the office on reasonable and customary terms and authorized by law to perform all
the duties imposed upon it by the Indenture. If such bank, national banking association, or trust company
publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or
examining authority, then for the purposes of the Indenture the combined capital and surplus of such bank,
trust company, or national banking association will be deemed to be its combined capital and surplus set forth
in its most recent report of condition so published.
(b) In the event of the resignation or removal of any Paying Agent, such Paying Agent will pay
over, assign and deliver any moneys held by it as Paying Agent to its successor, or if there be no successor, to
the Trustee. In the event that for any reason there is a vacancy in the office of any Paying Agent, the Trustee
will act as such Paying Agent.
DEFEASANCE
Payment of Bonds.
(a) If the City pays, or cause to be paid, or there is otherwise paid, to the Owners of all Bonds the
principal amount or any redemption premium, if applicable, of the Bonds, and interest due or to become due on
the Bonds, at the times and in the manner stipulated therein and in the Indenture, together with all other sums
payable by the City under the Indenture, including all fees and expenses of the Trustee, then and in that case,
subject to the provisions of clause (b) below, the Indenture, and the pledge of and lien on the Trust Estate
thereunder and all covenants, agreements and obligations of the City contained therein, will cease and
terminate and be completely discharged and satisfied and the City will be released therefrom and the Trustee
will assign and transfer to or upon the order of the City all property (in excess of the amounts required for the
foregoing) then held by the Trustee thereunder free and clear of any liens or encumbrances thereon pursuant to
the Indenture and will execute such documents as may be reasonably required by the City in such regard.
(b) Notwithstanding the termination, satisfaction and discharge of the Indenture or the
satisfaction discharge of the Indenture in respect of any Bonds, those provisions of the Indenture relating to the
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maturity of the Bonds, interest payments and dates thereof, tender and exchange provisions, exchange and
transfer of Bonds, replacement of mutilated, destroyed, lost or stolen Bonds, the safekeeping and cancellation
of Bonds, nonpresentment of Bonds, compliance by the City of the tax covenants contained in the Indenture
and the duties of the Trustee in connection with all of the foregoing, will remain in effect and be binding upon
the City, the Trustee and the Owners and the Trustee will continue to be obligated to hold in trust any monies
and investments then held by the Trustee for the payment of the principal or Redemption Price of, and interest
on, the Bonds, to pay to the Owners, but only from the monies and investments so held by the Trustee, the
principal or Redemption Price of, and interest on the Bonds as and when such payment becomes due.
Notwithstanding the satisfaction and discharge of the Indenture or the satisfaction discharge of the Indenture in
respect of any Bonds, those provisions of the Indenture relating to the compensation of the Trustee will remain
in effect and be binding upon the Trustee and the City.
Bonds Deemed Paid. Bonds (or portions of Bonds) for the payment or redemption of which moneys
have been set aside and will be held in trust by an Escrow Agent at the maturity date, redemption date or other
date when the Owner is entitled to receive the principal thereof, as applicable, will be deemed to have been
paid within the meaning and with the effect expressed in the Indenture. Any Outstanding Bond (or any portion
thereof such that both the portion thereof which is deemed paid and the portion which is not deemed paid
pursuant to the Indenture are in an Authorized Denomination) will prior to the maturity, redemption date or
other payment date thereof, be deemed to have been paid within the meaning and with the effect expressed in
the Indenture (except that the obligations under the Indenture set forth clause (b) above under the caption “—
Payment of Bonds” and the giving of the notices of the redemption of Bonds to be redeemed as provided in the
Indenture will continue) if: (a) in case said Bond (or portion thereof) is to be redeemed on any date prior to
maturity, the City has given the Trustee irrevocable instructions to give notice of redemption of such Bond (or
portion thereof) on said date as provided in the Indenture; (b) there has been deposited with an Escrow Agent
either moneys in an amount which are sufficient, or Defeasance Securities, the principal of and the interest on
which when due will provide moneys which, together with the moneys, if any, held by such Escrow Agent for
such purpose, are sufficient, in each case as evidenced by an Accountant’s Certificate, to pay when due the
principal amount of, and any redemption premiums on, said Bond (or portion thereof) and interest due and to
become due on said Bond (or portion thereof) on and prior to the redemption date, maturity date or other
payment date thereof; as the case may be; and (c) if such Bond (or portion thereof) is not to be paid or
redeemed within 60 days of the date of the deposit required by clause (b) above, the City has given the Trustee,
in form satisfactory to it, instructions to mail, as soon as practicable, by first class mail, postage prepaid, to the
Owner of such Bond, at the last address, if any, appearing upon the Bond Register, a notice that the deposit
required by clause (b) above has been made with an Escrow Agent and that said Bond (or the applicable
portion thereof) is deemed to have been paid in accordance with the Indenture and stating such date upon
which moneys are to be available for the payment of the principal amount of, and any redemption premiums
on, said Bond. Any notice given pursuant to clause (c) above with respect to Bonds which constitute less than
all of the Outstanding Bonds of any Series and maturity will specify the letter and number or other
distinguishing mark of each such Bond. Any notice given pursuant to clause (c) above with respect to less
than the full principal amount of a Bond must specify the principal amount of such Bond which is deemed paid
pursuant to the Indenture and notify the Owner of such Bond that such Bond must be surrendered as provided
therein. The receipt of any notice required by the Indenture is not a condition precedent to any Bond being
deemed paid in accordance with the Indenture and the failure of any Owner to receive any such notice will not
affect the validity of the proceedings for the payment of Bonds in accordance with the Indenture. Neither
Defeasance Securities nor moneys deposited with an Escrow Agent pursuant to the Indenture, nor principal or
interest payments on any such Defeasance Securities, will be withdrawn or used for any purpose other than,
and will be held in trust for, the payment of the principal amount of, and any redemption premiums on, said
Bonds and the interest thereon; provided that any cash received from principal or interest payments on such
Defeasance Securities deposited with an Escrow Agent: (1) to the extent that such cash is not required at any
time for such payment, as evidenced by an Accountant’s Certificate, will be paid over upon the written
direction of an Authorized City Representative, including a transfer to the City free and clear of any trust, lien,
pledge or assignment securing said Bonds; and (2) to the extent such cash is required for such payment at a
later date, will, to the extent practicable, at the written direction of an Authorized City Representative, be
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reinvested in Defeasance Securities maturing at times and in amounts, which together with the other funds to
be available to the Escrow Agent for such purpose, are sufficient to pay when due the principal amount of, and
any redemption premiums on, said Bonds and the interest to become due on said Bonds on and prior to such
redemption date, maturity date or other payment thereof, as the case may be, as evidenced by an Accountant’s
Certificate.
Nothing in the Indenture prevents the City from substituting for the Defeasance Securities held for the
payment or redemption of Bonds (or portions thereof) other Defeasance Securities which, together with the
moneys held by the Escrow Agent for such purpose, as evidenced by an Accountant’s Certificate, are sufficient
to pay when due the principal amount of, and any redemption premiums on, the Bonds (or portions thereof) to
be paid or redeemed, and the interest due on the Bonds (or portions thereof) to be paid or redeemed at the
times established with the initial deposit of Defeasance Securities for such purpose provided that the City
delivers to the Escrow Agent a Favorable Opinion of Bond Counsel with respect to such substitution.
Prior to the defeasance of any Bonds bearing interest at a variable rate becoming effective under the
Indenture, the Trustee must receive a Rating Confirmation from each Rating Agency.
Defeasance of Portion of Bond. Subject to the provisions of the Indenture, if there is deemed paid
pursuant to the Indenture less than all of the full principal amount of a Bond, the City will execute and the
Trustee will authenticate and deliver, upon the surrender of such Bond, without charge to the Owner of such
Bond, a new Bond or Bonds for the principal amount of the Bond so surrendered which is deemed paid
pursuant to the Indenture and another new Bond or Bonds for the balance of the principal amount of the Bond
so surrendered, in each case of like Series, maturity and other terms, and in any of the Authorized
Denominations.
Discharge of Liability on Bonds. Upon the deposit with an Escrow Agent, in trust, at or before
maturity or the applicable redemption date, of money or Defeasance Securities in the necessary amount (as
provided in the Indenture) to pay or redeem Outstanding Bonds (or portions thereof), and to pay the interest
thereto to such maturity or redemption date, as applicable, (provided that, if such Bonds are to be redeemed
prior to the maturity thereof, notice of such redemption has been given as provided in the Indenture or
provision satisfactory to the Trustee has have been made for giving such notice), all liability of the City in
respect of such Bonds will cease, terminate and be completely discharged, except that the City will remain
liable for such payment but only from, and the Bondowners will thereafter be entitled only to payment
(without interest accrued thereon after such redemption date or maturity date, as applicable) out of, the money
and Defeasance Securities deposited with the Escrow Agent as aforesaid for their payment, subject, however,
to the provisions of the Indenture; provided that no Bond which constitutes Tender Indebtedness will be
deemed to be paid within the meaning of the Indenture unless the Purchase Price of such Bond, if tendered for
purchase in accordance with the Indenture, could be paid when due from such moneys or Defeasance
Securities (as evidenced by an Accountant’s Certificate) or a Credit Support Instrument is provided in
connection with such Purchase Price.
EVENTS OF DEFAULT; REMEDIES
Events of Default. Each of the following constitute an Event of Default under the Indenture: (a) if
default is made in the payment of the principal or Redemption Price of or Sinking Fund Installment for, or
interest on, any Outstanding Bond when and as the same become due and payable, whether on an Interest
Payment Date, at maturity, by call for redemption, or otherwise; (b) if default is made by the City in the
performance or observance of any other of the covenants, agreements or conditions on its part contained in the
Indenture or in the Outstanding Bonds, and such default continues for a period of 120 days after written notice
thereof to the City by the Trustee or to the City and to the Trustee by the Owners of not less than 10% in
principal amount of the Bonds Outstanding; provided, however, if such default is such that it can be corrected
by the City but not within the applicable period specified above, it will not constitute an Event of Default if
corrective action is instituted by the City within 30 days of the City’s receipt of the notice of the default
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required by the Indenture and diligently pursued until the default is corrected; (c) an Event of Bankruptcy has
occurred and is continuing with respect to the City; or (d) an event of default (as defined in the applicable
Issuing Instrument) has occurred and is continuing with respect to any Parity Obligation.
Accounting and Examination of Records After Default. The City has covenanted that if an Event of
Default has happened and has not been remedied, the books of record and accounts of the City and all other
records relating to the Electric System will at all times be subject to the inspection and use of the Trustee and
of its agents and attorneys. The City has covenanted that if an Event of Default has happened and has not been
remedied, the City, upon demand of the Trustee, will account, as if it were the trustee of an express trust, for
all Revenues and other moneys, securities and funds pledged or held under the Indenture for such period as
stated in such demand.
Application of Revenues and Other Moneys After Default.
(a) Notwithstanding anything to the contrary contained in the Indenture, the City has covenanted
that if an Event of Default happens and has not been remedied, the City, upon the demand of the Trustee, will
cause control of amounts in the Light and Power Fund to be transferred to the Trustee and will cause to be paid
over to the Trustee by the first Business Day of each month, all Revenues received by the City with respect to
the preceding month.
(b) During the continuance of an Event of Default, the Trustee will apply all Revenues and
amounts in the Light and Power Fund received by or available to the Trustee pursuant to any right given or
action taken under the provisions of the Indenture, in the following order of priority: First: To the payment of
the reasonable and proper charges, expenses and liabilities of the Fiduciaries, including reasonable fees of
counsel, and the payment of the reasonable and proper charges, expenses and liabilities of the fiduciaries for
Parity Obligations, including reasonable fees of counsel. Second: To the payment of the Operation and
Maintenance Expenses. Third: To the payment of the principal and Redemption Price of and interest on the
Outstanding Bonds, and the principal and redemption price of and interest on the other Outstanding Parity
Obligations, then due and payable; provided however, that in the event the amount of Net Revenues and
amounts in the Light and Power Fund available for such payment are not sufficient to make all the payments
required by the Indenture, the Trustee will apply the Net Revenues and available amounts in the Light and
Power Fund to the payment of the principal and Redemption Price of and interest on all Outstanding Parity
Obligations then due and payable ratably (based on the respective amounts to be paid), without any
discrimination on preferences. Fourth: To the payment of any Termination Payments due and payable under
the Qualified Swap Agreements; provided however, that in the event the amount of Net Revenues and
available amounts in the Light and Power Fund are not sufficient to make all the payments required by the
Indenture with respect to all Qualified Swap Agreements, the Trustee will apply the Net Revenues and
available amounts in the Light and Power Fund to the payment of the Termination Payments then due and
payable under all Qualified Swap Agreements ratably (based on the respective amounts to be paid), without
any discrimination on preferences. Fifth: To the transfer to the Debt Service Reserve Fund for the Bonds and
to each debt service reserve fund for other Outstanding Parity Obligations, the amount, if any, necessary so
that the amount on deposit in the Debt Service Reserve Fund equal the Debt Service Reserve Requirement and
the amount in each debt service reserve fund for other Outstanding Parity Obligations equal the amount
required to be on deposit in such debt service reserve fund under the applicable Issuing Instrument; provided
that in the event that the amount of Net Revenues and amounts in the Light and Power Fund available for such
payment are not sufficient to make all the payments required by the Indenture, the Trustee will apply the Net
Revenues and available amounts in the Light and Power Fund to the transfer to the Debt Service Reserve Fund
and each debt service reserve fund for other Outstanding Parity Obligations ratably (based on the respective
amounts to be paid), without any discrimination or preferences. Sixth: To the payment of amounts due with
respect to outstanding Subordinate Obligations (which do not include Termination Payments for Qualified
Swap Agreements) in accordance with the provisions of the Issuing Instrument pursuant to which such
Subordinate Obligations have been issued.
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(c) In the event that on any date all payments required to be made from Net Revenues and
amounts in the Light and Power Fund available for such payment are not made in full as required by the
Indenture, then no payment will be made which has a priority under the Indenture lower than the delinquent
payment until all delinquent payments with a higher priority have been made in full.
(d) If and whenever all overdue installments of interest on all Outstanding Bonds and
Outstanding Parity Obligations, together with the reasonable and proper fees, charges, expenses and liabilities
of the Trustee and any other fiduciary for Parity Obligations, including reasonable fees of counsel, and all
other sums payable for the account of the City under the Indenture, including the principal and Redemption
Price of all Outstanding Bonds and Outstanding Parity Obligations and unpaid interest on all Outstanding
Bonds and Outstanding Parity Obligations which are then payable, will be paid for by the account of the City,
or provision satisfactory to the Trustee is made for such payment, and all defaults under the Indenture, the
Outstanding Bonds and the Outstanding Parity Obligation are made good or secured to the satisfaction of the
Trustee or provision deemed by the Trustee to be adequate is made therefor, the Trustee, at the request of the
City and with the consent of the Owners of a majority in aggregate principal of the Bonds then Outstanding
and with the consent of each Credit Provider whose consent is required by a Supplemental Indenture or a
Credit Support Agreement, will transfer control of amounts in the Light and Power Fund to the City and pay
over all unexpended Revenues in the hands of the Trustee (except Revenues deposited or pledged, or required
by the terms of the Indenture to be deposited or pledged, with the Trustee), and thereupon the City and the
Trustee will be restored, respectively, to their former positions and rights under the Indenture. No such
payment by the Trustee nor such restoration of the City and the Trustee to their former positions and rights will
extend to or affect any subsequent default under the Indenture or impair any right consequent thereon.
(e) The Trustee may in its discretion establish special record dates for the determination of the
Owners of Bonds for various purposes of the Indenture, including without limitation, payment of defaulted
interest and giving direction or consent to the Trustee.
Right to Accelerate Upon Default. Notwithstanding anything contrary in the Indenture or in the
Bonds, upon the occurrence of an Event of Default, the Trustee may, with the consent of each Credit Provider
whose consent is required by a Supplemental Indenture or a Credit Support Agreement, and will, at the
direction of the Owners of a majority in principal amount of Outstanding Bonds (other than Bonds owned by
or on behalf of the City) by written notice to the City, declare the principal of the Outstanding Bonds and the
interest thereon to be immediately due and payable, whereupon such principal and interest will, without further
action, become and be immediately due and payable.
Appointment of Receiver. If an Event of Default happens and has not been remedied, and upon the
filing of a suit or other commencement of judicial proceedings to enforce the rights of the Trustee and of the
Owners of the Bonds under the Indenture, the Trustee is entitled to make application for the appointment of a
receiver or custodian of the Revenues and amounts in the Light and Power Fund, pending such proceedings,
with such power as the court making such appointment confers.
Enforcement Proceedings.
(a) If an Event of Default happens and has not been remedied, then and in every such case, the
Trustee, by its agents and attorneys, may, with the consent of each Credit Provider whose consent is required
by a Supplemental Indenture or a Credit Support Agreement, proceed, and upon the written request of the
Owners of not less than a majority in principal amount of the Bonds at the time Outstanding (other than Bonds
owned by or on behalf of the City), with the consent of each Credit Provider whose consent is required by a
Supplemental Indenture or a Credit Support Agreement, after receiving indemnification satisfactory to it as set
forth in clause (d) below, will proceed to protect and enforce its rights and the rights of the Owners of the
Outstanding Bonds by a suit or suits in equity or at law, whether for damages or the specific performance of
any covenant contained in the Indenture, to enforce the security interest in, pledge of and lien on the Trust
Estate granted pursuant to the Indenture, or in aid of the execution of any power granted in the Indenture or
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any remedy granted under applicable provisions of the laws of the State of California, or for an accounting by
the City as if the City were the trustee of an express trust, or in the enforcement of any other legal or equitable
right as the Trustee, being advised by counsel, deems most effectual to enforce any of its rights or to require
the City to perform any of its duties under the Indenture.
(b) All rights of action under the Indenture may be prosecuted and enforced by the Trustee
without the possession of any of the Bonds or the production thereof in the trial or other proceedings, and any
such suit or proceedings instituted by the Trustee will be brought in its own name as trustee of an express trust.
(c) If an Event of Default occurs and is continuing, upon commencing a suit in equity or upon
other commencement of judicial proceedings by the Trustee to enforce any right under the Indenture, the
Trustee will be entitled to exercise any and all rights and powers conferred in the Indenture and otherwise
provided by law to be exercised by the Trustee as the trustee of an express trust.
(d) Regardless of the happening of an Event of Default, the Trustee has power to, but unless
requested in writing by the Owners of a majority in principal amount of the Bonds then Outstanding and
furnished with reasonable security and indemnity, is under no obligation to, institute and maintain such suits
and proceedings as it may be advised are necessary or expedient to prevent any impairment of the security
under the Indenture by any acts which may be unlawful or in violation of the Indenture, and such suits and
proceedings as the Trustee may be advised are necessary or expedient to preserve or protect its interests and
the interests of the Owners of the Bonds.
(e) If the Trustee or any Owner or Owners of Outstanding Bonds have instituted any proceeding
to enforce any right or remedy under the Indenture and such proceeding has been discontinued or abandoned
for any reason, or has been determined adversely to the Trustee or to such Owner or Owners, then and in every
such case the City, the Trustee and the Owners will, subject to any determination in such proceeding, be
restored severally and respectively to their former positions under the Indenture, and thereafter all rights and
remedies of the Trustee and the Owners will continue as though no such proceeding had been instituted.
Restriction on Owner’s Action.
(a) Except as otherwise provided in clause (b) below, no Owner of any Bond has any right to
institute any suit, action or proceeding at law or in equity for the enforcement of any provision of the Indenture
or the execution of any trust under the Indenture or for any remedy given under the Indenture or existing at law
or in equity or by statute unless such Owner has previously given to the Trustee written notice of the
happening of an Event of Default, as provided in the Indenture, and the Owners of at least 25% in principal
amount of the Bonds then Outstanding have filed a written request with the Trustee, and have offered it
reasonable opportunity, either to exercise the powers granted in the Indenture or by the applicable laws of the
State of California or to institute such action, suit or proceeding in its own name, and unless such Owners have
offered to the Trustee adequate security and indemnity against the costs, expenses and liabilities to be incurred
therein or thereby, and the Trustee has refused to comply with such request for a period of 60 days after receipt
by it of such notice, request and offer of indemnity, it being understood and intended that no one or more
Owners of Bonds have any right in any manner whatever by his or their action to affect, disturb or prejudice
the pledge created by the Indenture, or to enforce any right under the Indenture, except in the manner therein
provided; and that all proceedings at law or in equity to enforce any provision of the Indenture will be
instituted, had and maintained in the manner provided in the Indenture and for the ratable benefit of all Owners
of the Outstanding Bonds, subject only to the provisions of the Indenture.
(b) Nothing contained in the Indenture or in the Bonds affects or impairs the obligation of the
City, which is absolute and unconditional, to pay on the respective due dates thereof and at the places therein
expressed, but solely from the Net Revenues, amounts in the Light and Power Fund available for such payment
in accordance with the Master Indenture and the amounts in the Funds, other than the Rebate Fund, held by the
Trustee under the Indenture, the principal amount, or Redemption Price if applicable, of the Bonds, and the
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interest thereon, to the respective Owners thereof, or affect or impair the right, which is also absolute and
unconditional, of any Owner to institute suit for the enforcement of any such payment from such sources.
Remedies Not Exclusive. No remedy by the terms of the Indenture conferred upon or reserved to the
Trustee or the Owners of the Bonds is intended to be exclusive of any other remedy, but each and every such
remedy will be cumulative and will be in addition to every other remedy given under the Indenture or existing
at law or in equity or by statute whether effective on or after the effective date of the Master Indenture. The
assertion or employment of any right or remedy, under the Indenture or otherwise, does not prevent the
concurrent assertion or employment of any other appropriate right or remedy.
Effect of Waiver and Other Circumstances.
(a) No delay or omission of the Trustee or any Owner of a Bond to exercise any right or power
arising upon the happening of an Event of Default will impair any right or power or be construed to be a
waiver of any such Event of Default or be an acquiescence therein; and every power and remedy given by the
Indenture to the Trustee or to the Owners of the Bonds may be exercised from time to time and as often as may
be deemed expedient by the Trustee or by the Owners of the Bonds.
(b) The Owners of not less than 60% in principal amount of the Bonds at the time Outstanding,
or their attorneys-in-fact duly authorized, may on behalf of the Owners of all of the Bonds, waive any Event of
Default and its consequences. No such waiver will extend to any subsequent or Event of Default or impair any
right consequent thereon unless the provisions of the Indenture have been satisfied with respect to such
subsequent Event of Default.
Notice of Default. The Trustee will, within 30 days after obtaining knowledge thereof, mail written
notice of the occurrence of any Event of Default to each Credit Provider, each Reserve Financial Guaranty
Provider and each Owner of Bonds then Outstanding at such Owner’s address appearing in the Bond Register.
MISCELLANEOUS
Execution of Documents and Proof of Ownership. Any request, direction, consent, or other
instrument in writing required or permitted by the Indenture to be signed or executed by Owners of Bonds may
be in any number of concurrent instruments of similar tenor, and may be signed or executed by such Owners in
person or by their attorneys appointed by an instrument in writing for that purpose, or by any bank, trust
company or other depository for such Bonds. Proof of the execution of any such instrument, or of any
instrument appointing any such attorney, and of the ownership of Bonds will be sufficient for any purpose of
the Indenture (except as otherwise provided in the Indenture), if made in the following manner:
(a) The fact and date of the execution by any Owner or his or her attorney of any such instrument
and of any instrument appointing any such attorney, may be provided by a signature guarantee of any bank or
trust company located within the United States of America. Where any such instrument is executed by an
officer of a corporation or association or a member of a partnership on behalf of such corporation, association
or partnership, such signature guarantee will also constitute sufficient proof of his authority.
(b) As to any Bond, the Person in whose name the same is registered in the Bond Register will be
deemed and regarded as the absolute owner for all purposes. None of the City, the Trustee or any Paying
Agent will be affected by any notice to the contrary.
(c) Nothing contained in the Indenture will be construed as limiting the City or the Trustee to
such proof, it being intended that the City or the Trustee may accept any other evidence of the matters stated in
the Indenture which the City or the Trustee may deem sufficient. Any request or consent of the Owner of any
Bond will bind every future Owner of the same Bond in respect to anything done or suffered to be done by the
City or the Trustee in pursuance of such request or consent.
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Severability. If any covenant, agreement or provision, or any portion thereof, contained in the
Indenture, or the application thereof to any Person or circumstance, is held to be unconstitutional, invalid or
unenforceable, the remainder of the Indenture, and the application of any such covenant, agreement or
provision, or portion thereof; to other Persons or circumstances, will be deemed severable and will not be
affected thereby, and the Indenture and the Bonds will remain valid, and the Owners of the Bonds will retain
all valid rights and benefits accorded to them under the Indenture, the Charter, and the Constitution and
statutes of the State.
General Authorization. The Authorized City Representatives, each acting singly, have been
respectively authorized to do and perform from time to time any and all acts and things consistent with the
Indenture necessary or appropriate to carry the same into effect.
Moneys Held for Particular Bonds. Except as otherwise provided in the Supplemental Indenture
authorizing a Series of Bonds, the amounts held by the Trustee, any Paying Agent or any Escrow Agent for the
payment of principal, premium if any, Purchase Price or interest due on any date with respect to particular
Bonds of such Series will, on and after such date and pending such payment, be set aside on its books and held
in trust by it for the Owners of the Bonds entitled thereto. None of the City, the Trustee, any Paying Agent or
any Escrow Agent will be liable to any Owner for interest on amounts so held in trust.
Credit Providers.
(a) Except as limited by the Indenture, a Supplemental Indenture authorizing a Series of Bonds
may provide that any Credit Provider providing a Credit Support Instrument with respect to Bonds of such
Series may exercise any right under the Master Indenture or the Supplemental Indenture authorizing the
issuance of such Series of Bonds given to the Owners of the Bonds to which such Credit Support Instrument
relates in lieu of such Owners.
(b) All provisions under the Master Indenture or a Supplemental Indenture authorizing the
exercise of rights by a Credit Provider with respect to Bonds of a Series, including without limitation actions
relating to consents, approvals, directions, waivers, appointments and requests, will be deemed not to require
or permit such consents, approvals, directions, waivers, appointments, requests or other actions and will be
read as if the Credit Provider were not mentioned therein: (1) during any period during which there is a default
by such Credit Provider under the applicable Credit Support Instrument; or (2) after the applicable Credit
Support Instrument will for any reason cease to be valid and binding on the Credit Provider, or be declared to
be null and void by final judgment of a court of competent jurisdiction, or after the Credit Support Instrument
has been rescinded, repudiated or terminated (other than in accordance with its terms), or after a receiver,
conservator or liquidator has been appointed for the Credit Provider; provided, however, that the payment of
amounts due or that may become due (including without limitation all indemnity payments) to the Credit
Provider or any other person identified under such Credit Provider’s Credit Support Agreement pursuant to the
terms of the Master Indenture, any Supplemental Indenture and/or such Credit Support Agreement will
continue in full force and effect. The foregoing does not affect any other rights of a Credit Provider, including
rights as the Owner of a Credit Provider Bond.
(c) All provisions in the Indenture relating to the rights of a Credit Provider will be of no force
and effect if there is no Credit Support Instrument in effect and all amounts owing to the Credit Provider under
the Credit Support Agreement have been paid.
Reserve Financial Guaranty Providers.
(a) All provisions under the Master Indenture or a Supplemental Indenture authorizing the
exercise of rights by a Reserve Financial Guaranty Provider with respect to Bonds of a Series, including
without limitation actions relating to consents, approvals, directions, waivers, appointments and requests, will
be deemed not to require or permit such consents, approvals, directions, waivers, appointments, requests or
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other actions and will be read as if the Reserve Financial Guaranty Provider were not mentioned therein:
(1) during any period during which there is a default by such Reserve Financial Guaranty Provider under the
applicable Reserve Financial Guaranty; or (2) after the applicable Reserve Financial Guaranty will for any
reason cease to be valid and binding on the Reserve Financial Guaranty Provider, or will be declared to be null
and void by final judgment of a court of competent jurisdiction, or after the Reserve Financial Guaranty has
been rescinded, repudiated or terminated, or after a receiver, conservator or liquidator has been appointed for
the Reserve Financial Guaranty Provider; provided, however, that the payment of amounts due (including
without limitation all indemnity payments) to the Reserve Financial Guaranty Provider pursuant to the terms of
the Master Indenture, any Supplemental Indenture, and/or any Reserve Financial Guaranty will continue in full
force and effect. The foregoing will not affect any other rights of a Reserve Financial Guaranty Provider.
(b) All provisions in the Indenture relating to the rights of a Reserve Financial Guaranty Provider
will be of no force and effect if there is no Reserve Financial Guaranty in effect issued by such Reserve
Financial Guaranty Provider and all amounts owing to such Reserve Financial Guaranty Provider under the
Reserve Financial Guaranty have been paid.
No Recourse on Bonds. Neither the members of the City nor the officers or employees of the City are
individually liable on the Bonds or in respect of any undertakings by the City under the Master Indenture, any
Supplemental Indenture or any Bond.
Unclaimed Moneys. Anything in the Master Indenture or any Supplemental Indenture to the contrary
notwithstanding, any moneys held by the Trustee, an Escrow Agent or any Paying Agent in trust for the
payment and discharge of any of the Bonds which remain unclaimed for two years after the date when such
Bonds have become due and payable, either at their stated maturity dates, tender for purchase or by call for
redemption, if such moneys were held by the Trustee, an Escrow Agent or a Paying Agent at such date, or for
two years after the date of deposit of such moneys if deposited with the Trustee, an Escrow Agent or a Paying
Agent after the date when such Bonds or the Purchase Price thereof became due and payable, will be repaid by
such Trustee, Escrow Agent or Paying Agent to the City, as its absolute property and free and clear of any
trust, lien, pledge or assignment securing said Bonds, and such Trustee, Escrow Agent or Paying Agent will
thereupon be released and discharged with respect thereto and the Owners of such Bonds will look only to the
City for the payment of such Bonds; provided, however, that before being required to make any such payment
to the City, the Trustee, the Escrow Agent or the Paying Agent, as applicable, will, at the expense of the City,
mail, postage prepaid to the Owners of such Bonds, at the last address appearing upon the Bond Register a
notice that said moneys remain unclaimed and that, after a date named in said notice, which date is not less
than 30 days after the date of the mailing of such notice, the balance of such moneys then unclaimed will be
returned to the City.
Holidays. If the date for making any payment or the last date for performance of any act or the
exercising of any right, as provided in any Indenture, is not a Business Day, such payment may be made or act
performed or right exercised on the next succeeding Business Day, with the same force and effect as if done on
the nominal date provided in the Indenture, and, unless otherwise specifically provided in a Supplemental
Indenture, no interest will accrue for the period after such nominal date.
Governing Law. The Indenture and each Bond will be interpreted, governed by and construed for all
purposes in accordance with the laws of the State for contracts executed and to be performed in the State.
Preservation and Inspection of Documents. All documents received by the Trustee, any Paying Agent
or any Escrow Agent under the provisions of the Indenture will be retained in its possession and will be subject
at all reasonable times to the inspection by the City, the Trustee, any Credit Provider and any Owner of an
Outstanding Bond and their agents and their representatives, any of whom may make copies thereof
Parties Interested. Nothing in the Indenture expressed or implied is intended or will be construed to
confer upon, or to give to, any Person, other than the City, the Trustee, each Paying Agent, each Escrow
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Agent, the Credit Providers, the Reserve Financial Guaranty Providers and the Owners of the Bonds, any right,
remedy or claim under or by reason of the Indenture or any covenant, condition or stipulation thereof; and all
of the covenants, stipulations, promises and agreements in the Indenture contained by the City will be for the
sole and exclusive benefit of the City, the Trustee, each Paying Agent, each Escrow Agent, the Credit
Providers, the Reserve Financial Guaranty Providers and the Owners of the Bonds.
SEVENTH SUPPLEMENTAL INDENTURE
AUTHORITY AND DEFINITIONS
Supplemental Indenture of Trust. The Seventh Supplemental Indenture is supplemental to the Master
Indenture.
Authority for the Seventh Supplemental Indenture. The Seventh Supplemental Indenture is entered
into: (a) pursuant to the Charter and Bond Ordinance; and (b) in accordance with the Master Indenture.
“Authorized Denominations” means, with respect to the 2022 Series A Bonds, $5,000 and any integral
multiple thereof.
“Interest Payment Date” means, with respect to the 2022 Series A Bonds, February 1 and August 1 of
each year, commencing August 1, 2022.
“Record Date” means, with respect to an Interest Payment Date for the 2022 Series A Bonds, the
fifteenth day of the month preceding the month in which such Interest Payment Date falls, whether or not such
day is a Business Day.
“Refunded 2012 Bonds” means the Refunded 2012 Series A Bonds and the Refunded 2012 Series B
Bonds.
“Refunded 2012 Series A Bonds” means all of the City’s Electric System Revenue Bonds, 2012 Series
A refunded pursuant to the terms of the 2012 Escrow Agreement.
“Refunded 2012 Series B Bonds” means the portion of the City’s Electric System Revenue Bonds,
2012 Taxable Series B refunded pursuant to the terms of the 2012 Escrow Agreement.
“Seventh Supplemental Indenture” means the Seventh Supplemental Indenture of Trust,
supplementing the Master Indenture, as the same may be amended and supplemented in accordance with the
provisions of the Master Indenture.
“2012 Escrow Agreement” means the Escrow Agreement, dated as of December 1, 2021, between the
City and The Bank of New York Mellon Trust Company, N.A., as trustee for the Refunded 2012 Bonds.
“2012 Escrow Fund” means the Escrow Fund established pursuant to the 2012 Escrow Agreement.
“2022 Continuing Disclosure Agreement” means the Continuing Disclosure Agreement, dated as of
May 5, 2022, by and between the City and the Trustee, acting in its capacity as dissemination agent, relating to
the 2022 Series A Bonds.
“2022 Delivery Date” means May 5, 2022.
“2022 Series A Bonds” means the City’s Electric System Revenue Bonds, 2022 Series A authorized
by the Seventh Supplemental Indenture.
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TAX COVENANTS
Tax Covenants. Notwithstanding any other provision of the Indenture, absent an Opinion of Bond
Counsel that the exclusion from gross income of the portion of interest on the 2022 Series A Bonds will not be
adversely affected for federal income tax purposes, the City has covenanted to comply with all applicable
requirements of the Code necessary to preserve such exclusion from gross income with respect to the 2022
Series A Bonds and has specifically covenanted, without limiting the generality of the foregoing, as follows:
(a) Private Activity. The City will take no action, refrain from taking any action and
make no use of the proceeds of the 2022 Series A Bonds or of any other moneys or property
which would cause the 2022 Series A Bonds to be “private activity bonds” within the meaning of
Section 141 of the Code;
(b) Arbitrage. The City will make no use of the proceeds of the 2022 Series A Bonds or
of any other amounts or property, regardless of the source, and will take no action and refrain
from taking any action which will cause the 2022 Series A Bonds to be “arbitrage bonds” within
the meaning of Section 148 of the Code;
(c) Federal Guarantee. The City will make no use of the proceeds of the 2022 Series A
Bonds and will not take or omit to take any action that would cause the 2022 Series A Bonds to be
“federally guaranteed” within the meaning of Section 149(b) of the Code;
(d) Information Reporting. The City will take or cause to be taken all necessary action
to comply with the informational reporting requirement of Section 149(e) of the Code necessary
to preserve the exclusion of interest on the 2022 Series A Bonds pursuant to Section 103(a) of the
Code;
(e) Hedge Bonds. The City will make no use of the proceeds of the 2022 Series A
Bonds or any other amounts or property, regardless of the source, and will not take any action or
refrain from taking any action that would cause the 2022 Series A Bonds to be considered “hedge
bonds” within the meaning of Section 149(g) of the Code unless the City takes all necessary
action to assure compliance with the requirements of Section 149(g) of the Code to maintain the
exclusion from gross income of interest on the 2022 Series A Bonds for federal income tax
purposes; and
(f) Miscellaneous. The City will take no action and refrain from taking any action
inconsistent with its expectations stated in the Tax Certificate executed by the City in connection
with the issuance of the 2022 Series A Bonds and will comply with the covenants and
requirements stated therein and incorporated by reference in the Seventh Supplemental Indenture.
The tax covenants set forth in the Seventh Supplemental Indenture will not be applicable to, and
nothing contained therein will be deemed to prevent the City from issuing Bonds or causing the Trustee to
execute and deliver contracts payable on a parity with the 2022 Series A Bonds, the interest with respect to
which has been determined by Bond Counsel to be subject to federal income taxation.
Rebate Account.
Establishment. As provided in the Master Indenture, the Trustee will establish an account for the
2022 Series A Bonds within the Rebate Fund designated the “2022 Series A Rebate Account” when required
in accordance with the Seventh Supplemental Indenture. Absent an opinion of Bond Counsel that the
exclusion from gross income for federal income tax purposes of interest on the 2022 Series A Bonds will not
be adversely affected, the City will cause to be deposited in the 2022 Series A Rebate Account such amounts
as are required to be deposited therein pursuant to the Indenture and the Tax Certificate relating to the 2022
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Series A Bonds. All money at any time deposited in the 2022 Series A Rebate Account will be held by the
Trustee in trust for payment to the United States Treasury. All amounts on deposit in the 2022 Series A
Rebate Account will be governed by the Seventh Supplemental Indenture and the Tax Certificate relating to
the 2022 Series A Bonds, unless and to the extent that the City delivers to the Trustee an Opinion of Bond
Counsel that the exclusion from gross income for federal income tax purposes of interest on the 2022 Series A
Bonds will not be adversely affected if such requirements are not satisfied. Notwithstanding anything to the
contrary contained in the Seventh Supplemental Indenture or in the Tax Certificate relating to the 2022
Series A Bonds, the Trustee: (i) will be deemed conclusively to have complied with the provisions thereof if it
follows all written requests of the City; (ii) will have no liability or responsibility to enforce compliance by the
City with the terms of the Tax Certificate relating to the 2022 Series A Bonds; (iii) may rely conclusively on
the City’s calculations and determinations and certifications relating to rebate matters; and (iv) will have no
responsibility to independently make any calculations or determinations or to review the City’s calculations or
determinations thereunder.
(i) Annual Computation. Within 55 days of the end of each Bond Year (as such term is
defined in the Tax Certificate relating to the 2022 Series A Bonds), the City will calculate or cause to be
calculated the amount of rebatable arbitrage, in accordance with Section 148(f)(2) of the Code and
Section 1.148-3 of the Treasury Regulations (taking into account any applicable exceptions with respect to the
computation of the rebatable arbitrage, described, if applicable, in the Tax Certificate relating to the 2022
Series A Bonds (e.g., the temporary investments exceptions of Section 148(f)(4)(B) and the construction
expenditures exception of Section 148(f)(4)(C) of the Code), and taking into account whether the election
pursuant to Section 148(f)(4)(C)(vii) of the Code (the “1½% Penalty”) has been made), for such purpose
treating the last day of the applicable Bond Year as a computation date, within the meaning of
Section 1.148-1(b) of the Treasury Regulations (the “Rebatable Arbitrage”). The City will obtain expert
advice as to the amount of the Rebatable Arbitrage to comply with the Seventh Supplemental Indenture.
(ii) Annual Transfer. Within 55 days of the end of each Bond Year, upon the written
request of the City, an amount will be deposited to the 2022 Series A Rebate Account by the Trustee from any
Net Revenues legally available for such purpose (as specified by the City in the aforesaid written request), if
and to the extent required so that the balance in the 2022 Series A Rebate Account will equal the amount of
Rebatable Arbitrage so calculated in accordance with clause (i) of paragraph (a) above. In the event that
immediately following the transfer required by the previous sentence, the amount then on deposit to the credit
of the 2022 Series A Rebate Account exceeds the amount required to be on deposit therein, upon written
request of the City, the Trustee will withdraw the excess from the 2022 Series A Rebate Account and then
credit the excess to the Debt Service Fund.
(iii) Payment to the Treasury. The Trustee will pay, as directed by written Request of the
City, to the United States Treasury, out of amounts in the 2022 Series A Rebate Account:
(A) Not later than 60 days after the end of: (X) the fifth Bond Year; and (Y) each
applicable fifth Bond Year thereafter, an amount equal to at least 90% of the Rebatable Arbitrage calculated as
of the end of such Bond Year; and
(B) Not later than 60 days after the payment of all of the 2022 Series A Bonds,
an amount equal to 100% of the Rebatable Arbitrage calculated as of the end of such applicable Bond Year,
and any income attributable to the Rebatable Arbitrage, computed in accordance with Section 148(f) of the
Code and Section 1.148-3 of the Treasury Regulations.
In the event that, prior to the time of any payment required to be made from the 2022 Series A Rebate
Account, the amount in the 2022 Series A Rebate Account is not sufficient to make such payment when such
payment is due, the City will calculate or cause to be calculated the amount of such deficiency and deposit an
amount received from any legally available source equal to such deficiency prior to the time such payment is
due. Each payment required to be made pursuant to paragraph (a) will be made to the Internal Revenue
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Service Center, Ogden, Utah 84201 on or before the date on which such payment is due, and will be
accompanied by Internal Revenue Service Form 8038-T (prepared by the City), or will be made in such other
manner as provided under the Code.
Disposition of Unexpended Funds. Any funds remaining in the 2022 Series A Rebate Account after
redemption and payment of the 2022 Series A Bonds and the payments described in paragraph (a) above being
made may be withdrawn by the City and utilized in any manner by the City.
Survival of Defeasance. Notwithstanding anything in the Seventh Supplemental Indenture to the
contrary, the obligation to comply with the Rebate Account requirements of the Seventh Supplemental
Indenture will survive the defeasance or payment in full of the 2022 Series A Bonds.
MISCELLANEOUS
Indenture to Remain in Effect. Save and except as amended and supplemented by the First
Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth
Supplemental Indenture, the Fifth Supplemental Indenture, Sixth Supplemental Indenture and the Seventh
Supplemental Indenture, the Master Indenture will remain in full force and effect.
Notice to Rating Agencies. The Trustee or the City, as appropriate, will provide each Rating Agency
with prompt written notice of: (a) the appointment of any successor Trustee; (b) the first date on which no
2022 Series A Bonds are Outstanding; (c) any material amendments to the Master Indenture or the Seventh
Supplemental Indenture; (d) any acceleration of the 2022 Series A Bonds pursuant to the Master Indenture; or
(e) any redemption in whole of the 2022 Series A Bonds.
Counterparts. The Seventh Supplemental Indenture may be executed in any number of counterparts
and by the different parties thereto on separate counterparts, each of which, when so executed and delivered,
will be an original; but such counterparts will together constitute but one and the same instrument.
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APPENDIX C
PROPOSED FORM OF OPINION OF BOND COUNSEL
On the date of delivery of the 2022 Bonds, subject to the terms and conditions of the Forward Delivery
Purchase Contract (as defined in the Official Statement), Stradling Yocca Carlson & Rauth, a Professional
Corporation, Bond Counsel, proposes to render its final approving opinion in substantially the following form:
May __, 2022
City of Vernon
4305 South Santa Fe Avenue
Vernon, California 90058
Re: City of Vernon Electric System Revenue Bonds, 2022 Series A
Members of the City Council:
We have examined a certified copy of the record of the proceedings of the City of Vernon (the “City”)
relative to the issuance of the $_______ City of Vernon Electric System Revenue Bonds, 2022 Series A (the
“2022 Bonds”), dated the date hereof, and such other information and documents as we consider necessary to
render this opinion. In rendering this opinion, we have relied upon certain representations of fact and
certifications made by the City, the initial purchaser of the 2022 Bonds and others. We have not undertaken to
verify through independent investigation the accuracy of the representations and certifications relied upon by
us.
The 2022 Bonds are being issued pursuant to an Indenture of Trust, dated as of September 1, 2008, by
and between the City and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), as
amended and supplemented, including as supplemented by the Seventh Supplemental Indenture of Trust, dated
as of December 1, 2021 (collectively, the “Indenture”). The 2022 Bonds mature on the dates and in the
amounts referenced in the Indenture. The 2022 Bonds are dated their date of delivery and bear interest at the
rates per annum referenced in the Indenture. The 2022 Bonds are registered in the form set forth in the
Indenture.
Based on our examination of existing law as Bond Counsel, certified copies of such legal proceedings
and such other proofs as we deem necessary to render this opinion, we are of the opinion, as of the date hereof
and under existing law, that:
1. The proceedings of the City show lawful authority for the issuance and sale of the 2022
Bonds under the laws of the State of California now in force, and the Indenture has been duly authorized,
executed and delivered by the City. Assuming due authorization, execution and delivery by the Trustee, as
appropriate, the 2022 Bonds and the Indenture are valid and binding obligations of the City enforceable against
the City in accordance with their terms.
2. The obligation of the City to make the payments of principal of and interest on the 2022
Bonds from Net Revenues (as such term is defined in the Indenture) is an enforceable obligation of the City
and does not constitute an indebtedness of the City in contravention of any constitutional or statutory debt limit
or restriction.
3. Under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy
of certain representations and compliance with certain covenants and requirements described herein, interest
(and original issue discount) on the 2022 Bonds is excluded from gross income for federal income tax
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purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax
imposed on individuals.
4. Interest (and original issue discount) on the 2022 Bonds is exempt from State of California
personal income tax.
5. The difference between the issue price of a 2022 Bond (the first price at which a substantial
amount of the 2022 Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity
with respect to such 2022 Bond constitutes original issue discount. Original issue discount accrues under a
constant yield method, and original issue discount will accrue to a 2022 Bond Owner before receipt of cash
attributable to such excludable income. The amount of original issue discount deemed received by a 2022
Bond Owner will increase the 2022 Bond Owner’s basis in the applicable 2022 Bond. The amount of original
issue discount that accrues to the 2022 Bond Owner is excluded from the gross income of such 2022 Bond
Owner for federal income tax purposes, is not an item of tax preference for purposes of calculating the federal
alternative minimum tax imposed on individuals (as described in paragraph 3 above) and is exempt from State
of California personal income tax.
6. The amount by which a 2022 Bond Owner’s original basis for determining loss on sale or
exchange in the applicable 2022 Bond (generally, the purchase price) exceeds the amount payable on maturity
(or on an earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171
of the Internal Revenue Code of 1986, as amended (the “Code”); such amortizable bond premium reduces the
2022 Bond Owner’s basis in the applicable 2022 Bond (and the amount of tax-exempt interest received), and is
not deductible for federal income tax purposes. The basis reduction as a result of the amortization of 2022
Bond premium may result in a 2022 Bond Owner realizing a taxable gain when a 2022 Bond is sold by the
2022 Bond Owner for an amount equal to or less (under certain circumstances) than the original cost of the
2022 Bond to the 2022 Bond Owner. Purchasers of the 2022 Bonds should consult their own tax advisors as to
the treatment, computation and collateral consequences of amortizable bond premium.
The opinions expressed herein as to the exclusion from gross income of interest (and original issue
discount) on the 2022 Bonds are based upon certain representations of fact and certifications made by the City
and are subject to the condition that the City complies with all requirements of the Code, that must be satisfied
subsequent to the issuance of the 2022 Bonds to assure that such interest (and original issue discount) on the
2022 Bonds will not become includable in gross income for federal income tax purposes. Failure to comply
with such requirements of the Code might cause interest (and original issue discount) on the 2022 Bonds to be
included in gross income for federal income tax purposes retroactive to the date of issuance of the 2022 Bonds.
The City has covenanted to comply with all such requirements.
The opinions expressed herein may be affected by actions taken (or not taken) or events occurring (or
not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether
any such actions or events are taken or do occur. Our engagement ends as of the date of issuance of the 2022
Bonds. The Indenture and the Tax Certificate relating to the 2022 Bonds permit certain actions to be taken or
to be omitted if a favorable opinion of Bond Counsel is provided with respect thereto. No opinion is expressed
herein as to the effect on the exclusion from gross income of interest (and original issue discount) on the 2022
Bonds for federal income tax purposes with respect to any 2022 Bond if any such action is taken or omitted
based upon the opinion or advice of counsel other than ourselves. Other than expressly stated herein, we
express no other opinion regarding tax consequences with respect to the 2022 Bonds.
By delivering this letter, we are not expressing any opinion with respect to any indemnification,
contribution, liquidated damages, penalty (including any remedy deemed to constitute a penalty), right of set-
off, arbitration, judicial reference, choice of law, choice of forum, choice of venue, non-exclusivity of
remedies, waiver or severability provisions contained in the Indenture or the 2022 Bonds, nor are we
expressing any opinion with respect to the state or quality of title to or interest in any assets described in or as
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subject to the lien of the Indenture or the 2022 Bonds or the accuracy or sufficiency of the description
contained therein of, or the remedies available to enforce liens on, any such assets.
The opinions that are expressed herein are based upon our analysis and interpretation of existing laws,
regulations, rulings and judicial decisions and cover certain matters which are not directly addressed by such
authorities. We call attention to the fact that the rights and obligations under the Indenture and the 2022 Bonds
are subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar
laws affecting creditors’ rights, to the application of equitable principles if equitable remedies are sought, to
the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against public
agencies in the State of California.
Our opinion is limited to matters governed by the laws of the State of California and federal law. We
assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction.
We express no opinion herein as to the accuracy, completeness or sufficiency of the Official
Statement relating to the 2022 Bonds or other offering material relating to the 2022 Bonds and expressly
disclaim any duty to advise the owners of the 2022 Bonds with respect to matters contained in the Official
Statement.
Respectfully submitted,
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APPENDIX D
INFORMATION CONCERNING DTC
The information in this section concerning DTC and DTC’s book entry only system has been obtained
from sources that the City believes to be reliable, but the City takes no responsibility for the completeness or
accuracy thereof. The following description of the procedures and record keeping with respect to beneficial
ownership interests in the 2022 Bonds, payment of principal, premium, if any, accreted value, if any, and
interest on the 2022 Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial
ownership interests in the 2022 Bonds and other related transactions by and between DTC, the DTC
Participants and the Beneficial Owners is based solely on information provided by DTC.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the
2022 Bonds. The 2022 Bonds will be issued as fully-registered securities registered in the name of Cede &
Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of
DTC. One fully-registered 2022 Bond will be issued for each annual maturity of the 2022 Bonds, each in the
aggregate principal amount of such annual maturity, and will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the
New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform
Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the
Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S.
and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over
100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the
post-trade settlement among Direct Participants of sales and other securities transactions in deposited
securities, through electronic computerized book entry transfers and pledges between Direct Participants’
accounts. This eliminates the need for physical movement of securities certificates. Direct Participants
include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations,
and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation
and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the
users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and
non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or
maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”).
DTC is rated AA+ by Standard & Poor’s. The DTC Rules applicable to its Participants are on file with the
Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of 2022 Bonds under the DTC system must be made by or through Direct Participants,
which will receive a credit for the 2022 Bonds on DTC’s records. The ownership interest of each actual
purchaser of each 2022 Bonds (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect
Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase.
Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction,
as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the
Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2022 Bonds are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive bonds representing their ownership interests in 2022 Bonds,
except in the event that use of the book entry system for the 2022 Bonds is discontinued.
To facilitate subsequent transfers, all 2022 Bonds deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by
an authorized representative of DTC. The deposit of 2022 Bonds with DTC and their registration in the name
of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
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knowledge of the actual Beneficial Owners of the 2022 Bonds; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such 2022 Bonds are credited, which may or may not be the Beneficial
Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on
behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners
will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be
in effect from time to time. Beneficial Owners of 2022 Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the 2022 Bonds, such as redemptions,
tenders, defaults, and proposed amendments to the 2022 Bonds documents. For example, Beneficial Owners
of 2022 Bonds may wish to ascertain that the nominee holding the 2022 Bonds for their benefit has agreed to
obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the 2022 Bonds within a maturity are
being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to 2022
Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus
Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts 2022
Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the 2022 Bonds will be made to Cede
& Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is
to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from
the City or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records.
Payments by Participants to Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street
name,” and will be the responsibility of such Participant and not of DTC, the Trustee or the City, subject to
any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption
proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by
an authorized representative of DTC) is the responsibility of the City or the Trustee, disbursement of such
payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the
Beneficial Owners will be the responsibility of Direct and Indirect Participants.
A 2022 Bond Owner shall give notice to elect to have its 2022 Bonds purchased or tendered, through
its Participant, to the Trustee, and shall effect delivery of such 2022 Bond by causing the Direct Participant to
transfer the Participant’s interest in the 2022 Bonds, on DTC’s records, to the Trustee. The requirement for
physical delivery of 2022 Bond in connection with an optional tender or a mandatory purchase will be deemed
satisfied when the ownership rights in the 2022 Bond are transferred by Direct Participants on DTC’s records
and followed by a book entry credit of tendered 2022 Bond to the Trustee’s DTC account.
DTC may discontinue providing its services as depository with respect to the 2022 Bonds at any time
by giving reasonable notice to the City or the Trustee. Under such circumstances, in the event that a successor
depository is not obtained, physical certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book entry only transfers through DTC (or a
successor securities depository). In that event, 2022 Bonds will be printed and delivered to DTC.
THE TRUSTEE, AS LONG AS A BOOK ENTRY ONLY SYSTEM IS USED FOR THE 2022
BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO
DTC. ANY FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC
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PARTICIPANT TO NOTIFY ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR
EFFECT WILL NOT AFFECT THE VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING
TO THE REDEMPTION OF THE 2022 BONDS CALLED FOR REDEMPTION OR OF ANY OTHER
ACTION PREMISED ON SUCH NOTICE.
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APPENDIX E
FORM OF CONTINUING DISCLOSURE AGREEMENT
At the time of issuance of the 2022 Bonds, there will be executed and delivered a Continuing
Disclosure Agreement in substantially the following form:
This Continuing Disclosure Agreement (the “Disclosure Agreement”) is executed and delivered by
and between the City of Vernon (the “City”) and The Bank of New York Mellon Trust Company, N.A., in its
capacity as dissemination agent (the “Dissemination Agent”), in connection with the issuance of the City of
Electric System Revenue Bonds, 2022 Series A in an aggregate principal amount of $______ (the “Bonds”).
The Bonds are being issued by the City pursuant to the provisions of that certain Indenture of Trust, dated as of
September 1, 2008, by and between the City and The Bank of New York Mellon Trust Company, N.A., as
trustee (the “Trustee”), as amended and supplemented, including as supplemented by the Seventh
Supplemental Indenture of Trust, dated as of December 1, 2021 (collectively, the “Indenture”). The City and
the Dissemination Agent hereby certify, covenant and agree as follows:
Section 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed
and delivered by the parties hereto for the benefit of the holders and Beneficial Owners of the Bonds and in
order to assist the Participating Underwriter in complying with the Rule.
Section 2. Definitions. In addition to the definitions set forth in the Indenture, which apply to
any capitalized terms used in this Disclosure Agreement, unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the City pursuant to, and as described in,
Sections 3 and 4 of this Disclosure Agreement.
“Annual Report Date” shall mean each April 1 after the end of the City’s fiscal year, the end of
which, as of the date of this Disclosure Agreement, is June 30.
“Beneficial Owner” shall mean any person which: (a) has the power, directly or indirectly, to vote or
consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through
nominees, depositories or other intermediaries); or (b) is treated as the owner of any Bonds for federal income
tax purposes.
“Dissemination Agent” shall mean, initially, The Bank of New York Mellon Trust Company, N.A.,
acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent that is so
designated in writing by the City and has filed with the then-current Dissemination Agent a written acceptance
of such designation.
“Financial Obligation” shall mean a: (A) debt obligation; (B) derivative instrument entered into in
connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or
(C) guarantee of (A) or (B). The term “Financial Obligation” shall not include municipal securities as to which
a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with the
Rule.
“Listed Events” shall mean any of the events listed in Sections 5(a) and (b) of this Disclosure
Agreement.
“MSRB” shall mean the Municipal Securities Rulemaking Board.
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“Official Statement” shall mean the Official Statement dated _______ __, 20__, relating to the Bonds.
“Participating Underwriter” shall mean Goldman Sachs & Co. LLC, the original underwriter of the
Bonds required to comply with the Rule in connection with offering of the Bonds.
“Rule” shall mean Rule 15c2-12 adopted by the SEC under the Securities Exchange Act of 1934, as
the same may be amended from time to time.
“SEC” shall mean the Securities and Exchange Commission.
Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report
Date, commencing April 1, 2023 with the Annual Report for fiscal year 2021-22, provide to the MSRB an
Annual Report that is consistent with the requirements of Section 4 of this Disclosure Agreement; provided
that the filing of the Official Statement with the MSRB shall constitute compliance with this obligation for the
first Annual Report Date. Not later than 15 calendar days prior to such date, the City shall provide its Annual
Report to the Dissemination Agent, if such Dissemination Agent is a different entity than the City. The
Annual Report must be submitted in an electronic format as prescribed by the MSRB, accompanied by such
identifying information as is prescribed by the MSRB, and may include by reference other information as
provided in Section 4 of this Disclosure Agreement; provided that any audited financial statements of the City
may be submitted separately from the balance of the Annual Report, and not later than the date required above
for the filings of the Annual Report. If the City’s fiscal year changes, it shall give notice of such change in the
same manner as for a Listed Event under Section 5(a). The City shall provide a written certification with each
Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the
Annual Report required to be furnished hereunder. The Dissemination Agent may conclusively rely upon such
certification of the City and shall have no duty or obligation to review such Annual Report.
(b) If the City is unable to provide to the MSRB an Annual Report by the date required in
subsection (a), the City in a timely manner shall send to the MSRB a notice in an electronic format as
prescribed by the MSRB, accompanied by such identifying information as prescribed by the MSRB.
(c) The Dissemination Agent shall:
1. provide any Annual Report received by it to the MSRB by the date required in
subsection (a);
2. file a report with the City and the Trustee (if the Dissemination Agent is other than
the Trustee) certifying that the Annual Report has been provided to the MSRB
pursuant to this Disclosure Agreement and stating the date it was provided; and
3. take any other actions as are mutually agreed upon between the Dissemination Agent
and the City.
Section 4. Content of Annual Reports. The Annual Report shall contain or incorporate by
reference the following:
(a) Audited financial statements of Electric Fund of the City (Vernon Public Utilities) for the
prior fiscal year, which include information regarding the funds and accounts of the Electric System, if any,
prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental
entities from time to time by the Governmental Accounting Standards Board. If such audited financial
statements are not available at the time that the Annual Report is required to be filed pursuant to Section 3(a),
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the Annual Report shall contain unaudited financial statements, and the audited financial statements shall be
filed in the same manner as the Annual Report when they become available.
(b) An update of the information for the prior fiscal year only in substantially the form set forth
in the following tables in the Official Statement under the caption “THE ELECTRIC SYSTEM”:
1. Resources Used to Satisfy City Load Requirements;
2. Average Billing Price (Cents per Kilowatt Hour); and
3. Customers, Retail Energy Sales, Revenues and Demand.
(c) An update of the information for the prior fiscal year only in substantially the form set forth
in the following tables in the Official Statement under the caption “ELECTRIC SYSTEM FINANCIAL
INFORMATION”:
1. Historical Revenues, Expenses and Debt Service Coverage Under Indenture.
Any or all of the items listed above may be included by specific reference to other documents,
including official statements of debt issues of the City or related public entities, that are available to the public
on the MSRB’s Internet website or filed with the SEC. If the document included by reference is a final official
statement, it must be available from the MSRB. The City shall clearly identify each such other document so
included by reference.
Section 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5, the City shall give, or shall cause the
Dissemination Agent to give, notice of the occurrence of any of the following events with respect to the Bonds
in a timely manner not more than ten (10) Business Days after the event:
1. Principal and interest payment delinquencies.
2. Unscheduled draws on debt service reserves reflecting financial difficulties.
3. Unscheduled draws on credit enhancements reflecting financial difficulties.
4. Substitution of credit or liquidity providers, or their failure to perform.
5. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or
final determinations of taxability or Notices of Proposed Issue (IRS Form 5701
TEB).
6. Tender offers.
7. Defeasances.
8. Rating changes.
9. Bankruptcy, insolvency, receivership or similar proceedings.
Note: For the purposes of the event identified in subparagraph (9), the event is considered to occur
when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated
person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law
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in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or
business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental
body and officials or officers in possession but subject to the supervision and orders of a court or governmental
authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or business of the
obligated person.
10. Default, event of acceleration, termination event, modification of terms or other
similar events under the terms of a Financial Obligation of the City, any of which reflect financial difficulties.
(b) Pursuant to the provisions of this Section 5, the City shall give, or shall cause the
Dissemination Agent to give, notice of the occurrence of any of the following events with respect to the Bonds,
if material, in a timely manner not more than ten (10) Business Days after occurrence:
1. Unless described in Section 5(a)(5), other notices or determinations by the Internal
Revenue Service with respect to the tax status of the Bonds or other events affecting
the tax status of the Bonds.
2. Modifications to the rights of Bondholders.
3. Bond calls.
4. Release, substitution or sale of property securing repayment of the Bonds.
5. Non-payment related defaults.
6. The consummation of a merger, consolidation or acquisition involving the City or the
sale of all or substantially all of the assets of the City, other than in the ordinary
course of business, the entry into a definitive agreement to undertake such an action
or the termination of a definitive agreement relating to any such actions, other than
pursuant to its terms.
7. Appointment of a successor or additional trustee or the change of the name of a
trustee.
8. Incurrence of a Financial Obligation of the City, or agreement to covenants, events of
default, remedies, priority rights, or other similar terms of a Financial Obligation of
the City, any of which affect security holders.
(c) If the City determines that knowledge of the occurrence of a Listed Event under subsection
(b) would be material under applicable federal securities laws, and if the Dissemination Agent is other than the
City, the City shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the
Dissemination Agent to file a notice of such occurrence with the MSRB in an electronic format as prescribed
by the MSRB in a timely manner not more than ten (10) Business Days after the event.
(d) If the City determines that a Listed Event under subsection (b) would not be material under
applicable federal securities laws and if the Dissemination Agent is other than the City, the City shall so notify
the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence.
(e) The City hereby agrees that the undertaking set forth in this Disclosure Agreement is the
responsibility of the City and, if the Dissemination Agent is other than the City, the Dissemination Agent shall
not be responsible for determining whether the City’s instructions to the Dissemination Agent under this
Section 5 comply with the requirements of the Rule.
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Section 6. Termination of Reporting Obligation. The obligations of the City and the
Dissemination Agent specified in this Disclosure Agreement shall terminate upon the legal defeasance, prior
redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the
Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under
Section 5(a).
Section 7. Dissemination Agent. The City may from time to time appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may
discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. If at
any time there is not any other designated Dissemination Agent, the City shall act as Dissemination Agent.
The initial Dissemination Agent shall be The Bank of New York Mellon Trust Company, N.A.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure
Agreement, the City may amend this Disclosure Agreement, and any provision of this Disclosure Agreement
may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to annual or event information to be provided hereunder, it
may only be made in connection with a change in circumstances that arises from a change in legal
requirements, change in law, or change in the identity, nature, or status of the City or type of business
conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of
nationally recognized bond counsel have complied with the requirements of the Rule at the time of the primary
offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any
change in circumstances; and
(c) the proposed amendment or waiver: (i) is approved by holders of the Bonds in the manner
provided in the Indenture for amendments to the Indenture with the consent of holders; or (ii) does not, in the
opinion of nationally recognized bond counsel, materially impair the interest of Bond owners.
The City shall describe any amendment to this Disclosure Agreement in the next Annual Report filed
after such amendment takes effect.
If the annual financial information or operating data to be provided in the Annual Report is amended
pursuant to the provisions hereof, the annual financial information containing the amended operating data or
financial information shall explain, in narrative form, the reasons for the amendment and the impact of the
change in the type of operating data or financial information being provided.
If an amendment is made to the undertaking specifying the accounting principles to be followed in
preparing financial statements, the annual financial information for the year in which the change is made shall
present a comparison between the financial statements or information prepared on the basis of the new
accounting principles and those prepared on the basis of the former accounting principles. The comparison
shall include a qualitative discussion of the differences in the accounting principles and the impact of the
change in the accounting principles on the presentation of the financial information, in order to provide
information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent
reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting principles
shall be sent to the MSRB.
Section 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to
prevent the City from disseminating any other information, using the means of dissemination set forth in this
Disclosure Agreement or any other means of communication, or including any other information in any
Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this
Disclosure Agreement. If the City chooses to include any information in any Annual Report or notice of
Resolution No. 2022-10
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4868-6614-1977v4/022487-0010
occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement,
the City shall have no obligation under this Disclosure Agreement to update such information or include it in
any future Annual Report or notice of occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the City to comply with any provisions of this
Disclosure Agreement, any Participating Underwriter or any holder or Beneficial Owner of the Bonds, or the
Trustee on behalf of the holders of the Bonds (after receiving indemnification to its satisfaction), may take
such actions as may be necessary and appropriate, including seeking mandate or specific performance by court
order, to cause the City to comply with its obligations under this Disclosure Agreement. A default under this
Disclosure Agreement shall not be deemed to be a default under the Indenture, and the sole remedy under this
Disclosure Agreement in the event of any failure of the City or the Dissemination Agent to comply with this
Disclosure Agreement shall be an action to compel performance.
Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination
Agent shall have only such duties as are specifically set forth in this Disclosure Agreement. The
Dissemination Agent has undertaken no responsibility with respect to any reports, notices or disclosures
provided to it under this Agreement, and has no liability to any person, including any holder of Bonds, with
respect to the content of any such reports, notices or disclosures. The fact that the Dissemination Agent or any
affiliate thereof may have any fiduciary or banking relationship with the City shall not be construed to mean
that the Dissemination Agent has actual knowledge of any event or condition except as may be provided by
written notice from the City. The City agrees to indemnify and save the Dissemination Agent, its officers,
directors, employees and agents, harmless against any loss, expense and liabilities that it may incur arising out
of or in the exercise or performance of its duties as described hereunder, if any, including the costs and
expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to
the Dissemination Agent’s negligence or willful misconduct. The obligations of the City under this Section
shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. The
Dissemination Agent shall not be responsible in any manner for the format or content of any notice or Annual
Report prepared by the City pursuant to this Disclosure Agreement. The City shall pay the reasonable fees and
expenses of the Dissemination Agent for its duties as described hereunder.
Section 12. Notices. Any notices or communications to or among any of the parties to this
Disclosure Agreement may be given to the Dissemination Agent (if other than the City) and to the City as
follows:
City: City of Vernon
4305 South Santa Fe Avenue
Vernon, California 90058
Attention: City Administrator
Dissemination Agent: The Bank of New York Mellon Trust Company, N.A.
333 S. Hope Street, Suite 2525
Los Angeles, California 90071
Attention: Corporate Trust
Reference: City of Vernon 2020 Electric Bonds
Section 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the
City, the Dissemination Agent, the Trustee, the Participating Underwriter and holders and Beneficial Owners
from time to time of the Bonds, and shall create no rights in any other person or entity.
Resolution No. 2022-10
Page 150 of 152
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4868-6614-1977v4/022487-0010
Section 14. Counterparts. This Disclosure Agreement may be executed in multiple counterparts,
all of which shall constitute one and the same instrument, and each of which shall be deemed to be an original.
Date: ____ __, 20__
CITY OF VERNON
By:
City Administrator
THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A.
as Dissemination Agent
By:
Authorized Signatory
Resolution No. 2022-10
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4868-6614-1977v4/022487-0010
Resolution No. 2022-10
Page 152 of 152
________________________
City Council Agenda Item Report
Submitted by: Veronica Petrosyan
Submitting Department: Health and Environmental Control Department
Meeting Date: April 19, 2022
SUBJECT
Single-Use Foodware Accessories and Standard Condiments
Recommendation:
A. Find that the proposed action is exempt from the California Environmental Quality Act
(CEQA), in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that
CEQA only applies to projects that may have a significant effect on the environment; and
CEQA Guidelines Section 15308, because the new regulations, which strengthen
requirements for the handling of solid waste, represent actions by a regulatory agency
for the protection of the environment;
B. Waive full reading and introduce and conduct first reading of Ordinance No. 1280 adding
Chapter 8.15 to Title 8 Health and Safety to the Vernon Municipal Code regulating
single-use foodware accessories and standard condiments; and
C. Direct staff to schedule second reading and adoption for the May 3, 2020 City Council
meeting.
Background:
According to Californians Against Waste (CAW), every year in the United States, an estimated
561 billion disposable foodware items are used, resulting in a whopping 4.9 million tons of
waste. Per CAW, unused food accessories including utensils, straws, napkins, condiment
packages, and others clog landfills, complicate recycling, and pollute streets and waterways in
our communities. CAW estimates that providing food and beverage accessories only upon
request to customers and requiring reusable food service ware for specified on-site dining will
significantly reduce unnecessary waste and save businesses and local governments money.
Research estimates that restaurants in the U.S. spend $19 billion purchasing disposable
foodware items. Per CAW, California restaurants that have voluntarily made the transition to a
combination of by request and reusable foodware have been proven to save between $3,000
and $21,000 per year, while reducing waste and greenhouse gas emissions.
CAW estimates, California’s local governments and taxpayers spend over $428 million
annually in ongoing efforts to clean up and prevent litter in streets, storm drains, parks and
waterways.
Existing law prohibits a full-service restaurant from providing single-use plastic straws to
consumers unless requested by the consumer and places the duty to enforce this prohibition
on specified state and local health and environmental health officers and their agents. Existing
law specifies that the first and 2nd violations of these provisions result in a notice of violation,
and any subsequent violation is an infraction punishable by a fine of $25 for each day the full-
service restaurant is in violation, but not to exceed an annual total of $300.
In October 2021, Governor Newsom signed into law California State Assembly Bill (AB) 1276.
AB 1276 prohibits a food facility from providing any single-use foodware accessory or
standard condiment, as defined, to a consumer unless requested by the consumer, as
provided. The bill prohibits those items from being bundled or packaged in a way that prohibits
the consumer from taking only the item desired. The bill authorizes a food facility to ask a
drive-through consumer if the consumer wants a single-use foodware accessory in specified
circumstances. The bill requires a food facility using a third-party food delivery platform to list
on its menu the availability of single-use foodware accessories and standard condiments and
only provide those items when requested, as provided. The bill excludes from these
requirements correctional institutions, health care facilities, residential care facilities, and
public and private school cafeterias.
AB 1276 requires a city, county, or city and county, on or before June 1, 2022, to authorize an
enforcement agency to enforce these requirements. AB 1276 would specify that the first and
2nd violations of these provisions result in a notice of violation, and any subsequent violation
is an infraction punishable by a fine of $25 for each day in violation, but not to exceed an
annual total of $300. By creating a new crime and imposing additional duties on local
governing bodies, this bill would impose a state-mandated local program.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Ordinance No. 1280
ORDINANCE NO. 1280
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON
ADDING CHAPTER 8.15 TO TITLE 8 HEALTH AND SAFETY TO THE
VERNON MUNICIPAL CODE REGULATING SINGLE-USE FOODWARE
ACCESSORIES AND STANDARD CONDIMENTS
SECTION 1. Recitals.
A.The California State Legislature has recognized that littered plastic products
have caused and continue to cause significant environmental harm and have
burdened local governments with significant environmental cleanup costs
(California Public Resources Code Section 42355).
B.Californians Against Waste (CAW) estimates that 561 billion disposable foodware
items are used every year in the United States, resulting in 4.9 million tons of
waste.
C.CAW further estimates that California’s local governments and taxpayers spend
over $428 million annually in ongoing efforts to clean up and prevent litter in public
streets, storm drains, parks and waterways.
D.According to the California Coastal Commission, more than 30 percent of all waste
collected during its annual beach clean-ups is from disposable foodware and
accessories.
E.In October 2021, Governor Newsom signed into law California State Assembly
Bill (AB) 1276 which expands on existing law prohibiting restaurants from
providingsingle-useplasticstrawsunlessrequestedbytheconsumer,byprohibiting
food facilities from providing any single-use foodware accessory or standard
condiment, as defined, to a consumer unless requested by the consumer.
F.Single-use foodware accessories, including napkins, straws,condiments, forks,
spoons, sporks, knives, and other disposable flatware create waste and
environmental hazards, and therefore should only be made available upon request
in compliance with AB 1276.
G.Over one hundred municipalities in California have adopted ordinances
prohibiting or restricting single-use foodware accessories, which have reduced
the volume of single-use foodware accessories in waste streams and throughout
the natural environment.
H.AB 1276 requires the City to authorize an enforcement agency to enforce the new
state requirements.
I.The City of Vernon seeks to implement AB 1276 by authorizing an enforcement
Ordinance No.
1280 Page 2 of 6
_______________________
agency to enforce its requirements prohibiting distribution of single-use foodware
accessories and standard condiments unless requested by the consumer on
or before June 1, 2022.
THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct and are a substantial part of this ordinance.
SECTION 3. This ordinance was assessed in accordance with the authority and
criteria contained in the California Environmental Quality Act (CEQA), the State CEQA
Guidelines, and the environmental regulations of the City. The City Council hereby finds
that this ordinance is not subject to CEQA in accordance with CEQA Guidelines Section
15061(b)(3), the general rule that CEQA only applies to projects that may have a
significant effect on the environment; and CEQA Guidelines Section 15308, because the
new regulations, which strengthen requirements for the handling of solid waste, represent
actions by a regulatory agency for the protection of the environment.
SECTION 4.Chapter 8.15 to Title 8 Health and Safety is hereby added to the
Vernon Municipal Code to read as follows:
Chapter 8.15 Single-Use Foodware Accessory and Standard Condiment Reduction
Ordinance
8.15.010 Purpose
8.15.020 Definitions
8.15.030 Requirements for Food Service Vendors
8.15.040 Exemptions
8.15.050 Enforcement and Penalties
8.15.010 Purpose
The City Council finds and declares that the purpose of this Chapter is to comply
with AB 1276 and mandate that all single-use foodware accessories and standard
condiments be made available upon request only.
8.15.020 Definitions
“AB 1276” means the California State Assembly Bill regulating the distribution of single-
use foodware accessories by food vendors to be made available only upon request of
the consumer.The new law applies to plastic and non-plastic single-use foodware
items and standard condiments. This law requires the City of Vernon to authorize an
enforcement agency on or before June 1, 2022.
“DigitalOrderingPlatform”meansthedigitaltechnologyprovidedbyaninternet website or
Ordinance No.
1280 Page 3 of 6
_______________________
mobile application used by customers to order food and/or schedule food delivery.
“Food Service Vendor” means any business, organization, entity, group, or individual
providing prepared food or beverages for public consumption on or off itspremises within
the City of Vernon.
“Refillable Self-service Dispenser” means a container or equipment that is used to hold
disposable foodware accessoriesfor customers to obtainat theirdiscretion.
“Single-use Foodware Accessories” means disposable products intended for single or
limited number of uses, used in the restaurant and food service industry for serving or
transporting prepared, ready-to-consume food or beverages.Single-use foodware
includes, but is not limited to, plates, cups, bowls, trays, hinged or lidded containers,
straws,stirrers, lidplugs,lidsandutensils. Thisdoesnotinclude disposable packaging for
unprepared foods.
“Standard Condiment” means relishes, spices, sauces, confections, or seasonings that
require no additional preparation and that are usually used on a food item after
preparation, including ketchup, mustard, mayonnaise, soy sauce,hot sauce, salsa, salt,
pepper, sugar, and sugar substitutes.
8.15.030 Requirements for Food Service Vendors
A.FoodServiceVendors shallonlydistributesingle-usefoodwareaccessoriesand
standard condiments upon the request of the customer, unless a local, county or State
emergency order is in effect requiring distribution of such single-use foodware
accessories and standard condiments. However, employees are not prohibited from
asking customers if they would like any single-use foodware accessories or standard
condiments and providing the amount requested by the customer.
B.Food Service vendors shall place signs on the premises to inform customers
and employees that single-use foodware accessories and standard condiments are
offered only upon request.
C.Food Service vendors shall include, in its Digital Ordering Platforms for
ordering food, a statement that communicates that single-use foodware accessories are
offered only upon request and shall include the ability for customers to select desired
foodware accessories or standard condiments. The food service vendor shall customize
itsmenu with a list of available single-usefoodware accessories and standard condiments,
and only those single-use foodware accessories or standard condiments selected by the
consumer shall be provided by the food facility. If a consumer does not select any
single-use foodware accessories or standard condiments, no single-use foodware
accessory or standard condiment shall be provided by the food facility for delivery of
ready-to-eat food.
Ordinance No.
1280 Page 4 of 6
_______________________
D.Food Service Vendors shall instruct employees to inform customers that single-
use foodwareaccessoriesand standard condimentsareoffered onlyupon request.
E.Food Service Vendors shall not package single-use foodware accessories and
standard condiments in a manner that prohibits a customer from taking only the type of
single-use foodware accessory or standard condiment desired without alsohavingtotake
a different type of single-use foodware accessory or standard condiment.
F.Food Service Vendorsmay ask a drive-through customer if the consumer wants
a single-use foodware accessory if the single-use foodware accessory is necessary for
the consumer to consume ready-to-eat food, or to prevent spills of or safely transport
ready-to-eat food, or to prevent spills of or safely transport ready-to-eat food.
8.15.040 Exemptions
A.Thischaptershallnotapplytorefillableself-servicedispensers. FoodService
Vendors may therefore make standard condiments and single-use foodware accessories
available for customers to obtain as needed. Food Service Vendors are encouraged to
use bulk dispensers for the condiments rather than condiments packaged for single-use.
B.This chapter shall not apply to the following institutions or facilities, as
defined under California Public Resources Code Section 42273:
a.Correctional institutions, which has the samemeaning as in California
Penal Code Section 7502.
b.Health care facilities licensed pursuant to Health and Safety Code
Section 1250, et seq.or facilities that are owned or operated by a health
care service plan licensed pursuant to Health and Safety Code Section
1340, et seq. .
c.Residential care facilities licensed pursuant to Health and Safety Code
Section 1200, et seq.
d.Public and private school cafeterias, as referenced in Health and
Safety Code Section 113789(b)(1). (1)(b).
8.15.050 Enforcement and Penalties
A.The first and second violations of this chapter shall result in a notice of violation,
and any subsequent violation shall be punishable by a fine of twenty-five dollars ($25) for
each day in violation, but not to exceed an amount of three hundred dollars ($300)
annually.
B.Unless otherwise provided for in this Chapter 8.15, the City’s procedures on
imposition of administrative fines, Chapter 1.08, Section 1.08.070, are hereby
incorporated in their entirety, as modified from time to time, and shall govern the
imposition, enforcement, collection, and review of administrative citations issued to
enforce this article and any rule or regulation adopted pursuant to this article, except as
Ordinance No.
1280 Page 5 of 6
_______________________
otherwise indicated in this article. This article shall only apply to those entities subject to
the City’s regulatory jurisdiction.
C.The Director of Health and Environmental Control, or designee, shall have
primary responsibility for enforcement of this chapter and shall have authority to issue
citations for violation of any provision of this chapter. The Director of Health and
Environmental Control, or designee, may establish regulations or administrative
procedures and take any actions reasonable and necessary to further the purposes of
this chapter or to obtain compliance with this chapter, including, without limitation,
performing an inspection of a retail establishment’s premises to verify compliance with
this chapter.
D. The remedies and penalties provided in this chapter are cumulative and not
exclusive, and nothing in this chapter shall preclude the City from pursuing any other
remedies. The City Attorney may seek legal, injunctive, or any other relief to enforce the
provisions of this chapter and any regulation or administrative procedure developed
pursuant hereto.
SECTION 5. Any provision of the Vernon Municipal Code or appendices thereto
inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies
and no further, is repealed or modified to that extent necessary to affect the provisions of
this Ordinance.
SECTION 6. If any section, subsection, paragraph, sentence, clause, phrase, or
portion thereof, of this Ordinance is declared by a court of competent jurisdiction to be
unconstitutional or otherwise invalid, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would have
adopted this Ordinance, and each section, subsection, paragraph, sentence, clause,
phrase, or portion thereof, irrespective of the fact that any one or more sections,
subsections, paragraphs, sentences, clauses, phrases, or portions thereof, be declared
invalid or unconstitutional. To this end, the provisions of this Ordinance are declared to
be severable.
/ / /
/ / /
/ / /
Ordinance No.
1280 Page 6 of 6
_______________________
SECTION 7. The City Clerk shall certify the adoption and publish this ordinance as
required by law.
APPROVED AND ADOPTED this __ day of _____, 2022.
_____________________________
MELISSA YBARRA, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
___________________________
ZAYNAH N. MOUSSA,
Interim City Attorney
City Council Agenda Item Report
Submitted by: Adriana Ramos
Submitting Department: Public Utilities
Meeting Date: April 19, 2022
SUBJECT
Purchase Contract with Performance Contracting, Inc. (PCI)
Recommendation:
A. Find that the proposed action is categorically exempt from California Environmental
Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301,
because the project consists of the maintenance, repair or minor alteration of an existing
facility and involves negligible or no expansion of an existing use;
B. Find that the best interests of the City are served by a direct award of a purchase
contract to Performance Contracting, Inc. (PCI), without a competitive selection process
pursuant to Section 3.32.110(B)(2) of the Vernon Municipal Code (VMC);
C. Approve the issuance of a Purchase Contract in an amount not-to-exceed $313,836 with
PCI for scaffolding and insulation services needed at the Malburg Generation Station
(MGS) during the Malburg Spring 2022 Outage (Spring Outage); and
D. Authorize the City Administrator to execute Attachment A – Amendment to Purchase
Order/Contract (Services) between the City of Vernon and PCI and related proposal for
scaffolding and insulation services, as incorporated in the Amendment, in substantially
the same form as submitted.
Background:
The Malburg Generation Station (MGS) undergoes a scheduled major planned outage every
30,000 equivalent operating hours or roughly 3 to 4 years and mostly in the fall and spring
when the electricity demand is lower. During a scheduled outage, the power plant will optimize
downtime by scheduling facility upgrades, repairs, and other maintenance work while the
power plant is offline.
Temporary scaffolding is required in multiple areas of MGS during the Spring Outage,
scheduled from May 1, 2022 to May 31, 2022. Scaffolding allows workers to perform tasks
safely and efficiently at elevated heights. Scaffolding erection and required inspections that
are specialized in nature, are performed by qualified individuals. Each scaffold is unique in
construction though all scaffolds must meet specific construction standards. Typically,
scaffolding costs are split between mobilization and demobilization, rental, and labor, with
labor constituting the most expensive component.
Insulation shields personnel from potential contact with high-temperature piping and turbine
components and is a critical component in the plant’s overall efficiency. During the outage,
insulation must be removed (destructively) and then replaced in multiple locations to provide
access points for inspection or other outage related activities. Insulation is then either
repaired or replaced in these select location.
Historically, purchase contracts are awarded to vendors for this type of work approximately 6-
months before a scheduled outage to ensure labor and material availability. However, based
on the truncated time available between the acquisition of MGS and the need to engage a
multitude of vendors for the various tasks associated with the Spring Outage, staff could not
comply with the City’s established purchasing guidelines.
Nonetheless, in an effort to obtain a competitive price for the City, Staff solicited quotes from
four (4) vendors with industrial power plant or refinery experience that were likely to submit
quotes to provide both scaffolding and insulation services. One of the four vendors solicited
failed to conduct a job walk for insulation and, as a result, was not considered. A second
vendor did not provide a breakdown of the work details, as requested, and then declined when
given the opportunity to reformat their estimate. Of the remaining two vendors, Performance
Contracting, Inc. (PCI) provided the lowest quote in response to the informal solicitation of
scaffold and insulation services.
As such, and due to the time-sensitive nature of this upcoming Spring Outage, it is in the best
interest of the City to award a purchase contract to PCI in support of MGS to provide the
necessary scaffold and insulation services during the Spring Outage with respect to the
following areas: High Energy Non-Destructive Examination (NDE), Lube Oil Cooler,
Combustion Turbine (CT) units, Carbon Monoxide (CO) Catalyst, and Selective Catalytic
Reduction (SCR) Catalyst.
The proposal received from PCI to complete the necessary work is $278,836. In anticipation of
additional work and services that may be needed once the scaffolding and insulation services
commence, staff recommends adding a contingency of $35,000, bringing the total purchase
contract value to a not-to-exceed amount of $313,836.
PCI has agreed to utilize and abide by the City's standard Purchase Contract, albeit with a
proposed Amendment that will be referenced as Attachment A to the Purchase Contract with
the City. As incorporated in the Amendment, PCI also requires that the City execute its
proposal. The Proposal and Amendment have been reviewed and approved as to form by the
City Attorney’s Office.
Fiscal Impact:
Sufficient funds for the Spring Outage services are available in the VPU Generation and
Operations Account No. 055.9190.500230.
Attachments:
1. PCI - Attachment A - Amendment to City Purchase Contract
ATTACHMENT A
AMENDMENT TO PURCHASE ORDER/CONTRACT (SERVICES)
BETWEEN
CITY OF VERNON
AND
PERFORMANCE CONTRACTING, INC.
This attachment constitutes an amendment to that certain Purchase Order/Contract (Services (the “Purchase
Order/Contract””) by and between CITY OF VERNON (the “City”) and PERFORMANCE CONTRACTING, INC.
(the “Contractor”) for work to be performed with respect to such projects as may, from time to time, be pending between
the parties. Notwithstanding any language in the contract documents to the contrary, the provisions of this Amendment
shall be controlling in the event of any discrepancies, inconsistencies or ambiguities between this Amendment and any
other contract document. References in this Amendment to specific sections in the Purchase Order/Contract are by way of
illustration and not intended to limit the applicability of provisions contained herein.
1) For the purposes of clarification of matters of Scope and expectations, Contractor’s Proposal is attached hereto
and incorporated by this reference as though fully set forth herein.
2) Contractor’s obligations of indemnification and defense shall be only to the extent of the negligence or willful
misconduct of Contractor or Contractor’s lower tier subcontractors. Contractor shall have no obligation to
indemnify or defend City from their own negligence or willful misconduct or the negligence and willful
misconduct of those not under Contractor’s control. Reference Section 12.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed this _____ day of ________,
20__.
CITY OF VERNON PERFORMANCE CONTRACTING, INC.
By: _____________________________________ By: _________________________________________
Title: ___________________________________ Title: _______________________________________
Page 1 of 7
s
In the event CONTRACTOR’s price is included within your bid, then CONTRACTOR’s bid will be deemed to have been accepted.
This proposal is subject to change and will be withdrawn if not accepted within 30 days of the above date; it is subject to and includes all terms and conditions described herein
(and such other terms as may be mutually agreed upon).
Contract Price $
See above
PERFORMANCE CONTRACTING, INC.
Acceptance Date:
By: Nick Naretta
By:
Title: Project Manager
Customer Name:
By:
Title:
Approval Date:
4955 E. Landon Drive
Anaheim, CA. 92897
Phone: (714) 701-9141
Fax: (714) 701-9168
PROPOSAL
INSULATION SERVICES DIVISION
08-04-03
To:
Malburg Generating Station
4963 S. Soto Street
Vernon, CA 90058
ATTN: Ian Everts
Date: 3/16/2022
Page One
Architect/Engineer:
Job Name Malburg Outage Support - Prevailing
Location Vernon, CA
Performance Contracting, Inc. (hereinafter designated as “CONTRACTOR”) proposes to furnish all materials and labor required for the
application of the following (hereinafter designated as the “Work”) for the amount stated below:
Specification Section(s): none
Per Job Walk Dated: 02/07/2022 Addenda noted: none
Scope of work:
Provide scaffold & insulation support at the following areas:
1. High Energy NDE Area #1
a. Install & remove scaffold for four areas, remove & re-insulate 6 10” elbows and one
tee for inspection.
i. Scaffolding: $27,762.00
ii. Insulation removal & re-insulation: $17,193.00
2. High Energy NDE Area #2
a. Install & remove scaffold for seven areas, remove & re-insulate seven 10” elbows for
inspection.
i. Scaffolding: $34,087.00
ii. Insulation removal & re-insulation: $13,651.00
3. High Energy NDE Area #3
a. Install & remove scaffold for three areas, remove & re-insulate two 10” elbows, one
tee and 12LF of piping for inspection.
i. Scaffolding: $9,659.00
ii. Insulation removal & re-insulation: $6,541.00
Page 2 of 7
08-04-03
4955 E. Landon Drive
Anaheim, CA. 92897
Phone: (714) 701-9141
Fax: (714) 701-9168 PROPOSAL
4. Lube Oil
a. Scaffold structures for Lube Oil Cooler maintenance for both units.
i. $9,766.00
5. CT Outage
a. Construct two scaffold structures for both units. Approximate size of 15’W x 40’L x
20’H. Structure will be shrink-wrapped, with a 8x15 flap cut out on the front side, and
exit space on the back side. Roof to be shrink-wrapped as well.
b. Provide two scaffold builders on day & night shift 10 hr shifts from May 2nd – May
21st.
i. Scaffold structures w/ shrink-wrap: $28,714.00
ii. Scaffold Support Time: $97,840.00
6. CO Catalyst
a. Construct & tear down two scaffold structures 4’L x 7’W x 40’H
i. $11,903.00
7. SCR Catalyst
a. Construct & tear down four scaffold structures approximate size of 4’L x 9’W x 40’H
i. $21,720.00
The total quoted T&M budget price for above referenced work is $278,836.00
• Price includes Sales Tax.
• Price does not include furnishing of bonds. If bonds are required, add 1% to the base price.
Scope Exclusions and Clarifications
• The terms of this proposal are conditioned upon PCI being able to perform its work in the timeframe
and using the methods anticipated in the RFP and/or other bidding documents provided. Should the
project be affected by any delays or additional requirements related to COVID-19 or any
ramifications thereof, this proposal may be adjusted accordingly.
• Prices are based on drive-up truck access to all elevations.
• Customer to provide all crane and forklift service as required.
• It is assumed the scaffold erection and the scaffold dismantle will be accomplished from start to finish.
One mobilization for erection of each building and one mobilization for dismantle of each building.
Additional mobilizations may be an added cost.
• Scaffolds may be yellow tagged due to obstacles and obstructions. Customer must tie off 100% in these
areas.
• Scaffolds must not be altered.
• After Scaffold is tagged and turned over for use via signed turnover sheet, customer is responsible for
scaffold inspections performed with their competent person.
• Customer to provide their own safety equipment as required.
• Scaffolds will be tied to the wall, sidewalks or structure as required. Customer to perform all patching
as the scaffold comes down.
• Adequacy of the existing structure to support scaffold dead, live and wind loading is not the
responsibility of Performance Contracting Inc. and can be supplied fo r an additional cost, if
requested. If provided, engineering supplied will detail the adequacy of the scaffolding system only.
Engineering has been provided.
• Job is figured for straight time. Normal day shifts are included. OT has been included for the CT Outage
support only.
• PCI utilizes Union Labor.
Page 3 of 7
08-04-03
4955 E. Landon Drive
Anaheim, CA. 92897
Phone: (714) 701-9141
Fax: (714) 701-9168 PROPOSAL
• Standard Schedule of Pricing
Insulation Rates Cost Per Hour
Straight time Overtime Double Time
General Foreman $121.58 $163.70 $205.83
Foreman $117.20 $157.39 $197.59
Insulator Mechanic $112.80 $151.06 $189.32
5th year apprentice $93.47 $126.31 $159.14
4th year apprentice $84.33 $113.01 $141.69
3rd year apprentice $75.36 $99.89 $124.42
2nd year apprentice $57.14 $77.51 $97.88
1st year apprentice $48.15 $64.36 $80.57
Pickup Truck $9.35/HR
Scaffold Rates - Prevailing Cost Per Hour
Straight time Overtime Double Time
General Foreman $102.49 $135.30 $168.11
Foreman $100.74 $132.72 $164.71
Insulator Mechanic $95.50 $124.99 $154.49
8th year apprentice $86.97 $113.52 $140.07
7h year apprentice $80.74 $104.34 $127.94
6th year apprentice $76.43 $98.55 $120.67
5th year apprentice $73.31 $93.96 $114.61
4th year apprentice $68.99 $88.17 $107.34
3rd year apprentice $64.33 $82.03 $99.73
Pickup Truck $9.35/HR
Flatbed Truck @ $250/ haul
MATERIALS & 3RD PARTY RENTALS
Material & Rentals to be charged at Cost + 10%
Scaffolding will be charged per truckload at $1,500 per month
Page 4 of 7
08-04-03
4955 E. Landon Drive
Anaheim, CA. 92897
Phone: (714) 701-9141
Fax: (714) 701-9168 PROPOSAL
Contractual Clarifications
• CONTRACTOR’s price is based on clarifications stated in this proposal (and is conditional upon acceptance of
mutually agreed-upon contract terms and conditions). CONTRACTOR’s attached Standard Terms and Conditions,
including CONTRACTOR’s Standard Insurance, will apply to this project.
• Protection of finished Work is excluded. CONTRACTOR’s Work must be approved and accepted on an area -by-
area basis prior to removal of scaffolding and other equipment necessary to perform the Work. Once approv al has
been given and such equipment has been removed, and CONTRACTOR has left the area, CONTRACTOR cannot
be responsible for damage to its Work.
• Any damage to CONTRACTOR’s Work, which is not specifically caused by CONTRACTOR, will be considered
damage by other trades. CONTRACTOR will be compensated for any repairs of damage by others via change order
to the subcontract.
• CONTRACTOR will be reimbursed for material received and stored in warehouse or pre -stocked at jobsite.
• This Proposal is per existing plans and specifications. Except as may be explicitly provided otherwise in this
Proposal, all necessary design, architectural and engineering services, whether already performed or contemplated,
shall be provided by others. This qualification ov errides any condition requiring CONTRACTOR to furnish such
services. Any assistance given to the Owner’s or General Contractor’s design professionals is furnished as an
accommodation to the Owner and/or General Contractor, and such services do not make CO NTRACTOR liable or
responsible for any design Work. The Owner’s design professionals shall approve any required shop drawings. Shop
drawings submitted by CONTRACTOR do not constitute design, architectural or engineering services, and any shop
drawings shall be deemed to be approved by the appropriate design professionals working for the Owner and/or
General Contractor unless CONTRACTOR is promptly notified of needed modifications. Any contract awarded
shall specify that design, architectural and engineering services are the responsibility of others.
• CONTRACTOR shall not be responsible for damaged work in place arising from or relating to weather,
environmental conditions, or other parties, except to the extent that such damage is covered by insurance (exc luding
deductibles).
• As used in this Proposal, “costs” shall mean all costs associated with the performance of the Work, including but not
limited to supervisory costs, engineering costs, and all other expenditures reasonable and necessary to complete the
Work required under the terms of this Proposal, or any modification thereto.
Commercial Clarifications:
• This proposal is based on a normal 40-hour week. No shift work or premium time has been included.
• CONTRACTOR will provide equipment and other safety precautions for the protection of CONTRACTOR’s
installers only.
• Temporary facilities such as light, power, heat, drinking water, and toilets are to be provided at locations convenient
to the Work at no cost to CONTRACTOR. Such facilities will be adequate to ensure the proper installation of all of
CONTRACTOR’s Work under all environmental conditions.
Schedule:
• This proposal is predicated upon CONTRACTOR’s scope of Work scheduled to begin no later than as directed by
your representative and be completed no later than as directed by your representative. Some minor variation in this
schedule has been anticipated; however, any change in this schedule will require reevaluation of the Work and this
proposal.
• CONTRACTOR shall be afforded the opportunity to esta blish the activities and working time necessary to perform
and complete the Work included in this proposal.
• This proposal is predicated upon the Work being released to CONTRACTOR in an orderly and logical sequence.
• In the event CONTRACTOR is unable to finish the Work on or about the scheduled completion date through no fault
of its own, CONTRACTOR shall be entitled to additional compensation for escalation of cost, lost efficiency factor,
or any other cost resulting from the delay, plus overhead and profit.
Changes:
• The cost of any extra Work, modifications, or additions required by jobsite conditions or directed by CONTRACTOR
shall be added to contract price plus 15% for markup and fee. CONTRACTOR shall be entitled to payments for said
extra Work, as directed by Customer, whether issued verbally or in writing.
Page 5 of 7
08-04-03
4955 E. Landon Drive
Anaheim, CA. 92897
Phone: (714) 701-9141
Fax: (714) 701-9168 PROPOSAL
• No charges will be made to CONTRACTOR’s account for Work performed or material furnished by others, without
notifying CONTRACTOR and receiving its written approval before proceeding with such Work .
Page 6 of 7
08-04-03
Standard Terms and Conditions
The Work: CONTRACTOR will supply and perform only that work specifically described
herein (the “Work”), notwithstanding anything to the contrary contained in any bid documents
presented by the Customer (the “Bid Documents”). It is specifically understood that the scope
of work described herein shall supersede anything to the contrary provided in the Bid
Documents. Any work to be done beyond that described herein shall require that a change
order be executed. Customer shall notify CONTRACTOR if CONTRACTOR’s work is to be
stopped upon reaching any aggregate contract sum.
Schedule: CONTRACTOR will supply and perform the Work in accordance with the
schedule (the “Schedule”) described herein or in the absence thereof, in accordance with the
Bid Documents. CONTRACTOR’s obligation hereunder is based upon the Schedule, both as
to duration and sequence. In the event of any significant change in the Schedule, the contract
price and the Schedule shall be equitably adjusted. In the event CONTRACTOR is delayed
in its Work or is otherwise required to accelerate or resequence its Work for reasons other
than the fault of CONTRACTOR or others under CONTRACTOR’s control, then
CONTRACTOR shall be entitled to additional compensation.
Work Week: Customer will cooperate with CONTRACTOR in scheduling all Work, including
disconnections, reconnections, interruption of services and utilities, and similar matters. In
the event that Customer requires CONTRACTOR to work outside of normal daytime business
hours, CONTRACTOR shall be entitled to additional compensation for such overtime.
Guarantee: CONTRACTOR warrants and guarantees that its Work will be performed in
compliance with all Federal, State and/or Local regulations and, at the time of Customer’s
acceptance inspection, will meet the specifications in the Contract Documents specifically
relating to CONTRACTOR’s Work. CONTRACTOR’s obligation to repair or replace defective
Work will expire one year from the completion of CONTRACTOR’s Work. THIS WARRANTY
IS IN LIEU OF ANY WARRANTIES PROVIDED IN THE BID DOCUMENTS AND IN LIEU OF
ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
Insurance: CONTRACTOR shall supply workers compensation insurance in the form and
amount required by law. CONTRACTOR shall supply general liability insurance, evidenced
by its standard certificate of insurance, the price of which shall be included in the bid price
unless otherwise specified herein.
Protection of Work: CONTRACTOR shall be responsible for protecting the Work, or
portions thereof, during the time the Work or portions of it are under its control; provided,
however, that during such time, CONTRACTOR shall not be responsible for loss or damage
caused by others, nor for any damages whatsoever while CONTRACTOR is not on site.
Storage and Facilities: Customer will provide at its expense sufficient storage space to
CONTRACTOR, which is fully protective of materials and equipment furnished for the Work
at the place of performance of the Work. Customer will provide at its expense all light, heat,
power and water which is required by CONTRACTOR for performance of the Work in the
custom and practice of CONTRACTOR’s trade.
Taxes: Customer will pay for any and all taxes which are now or may be imposed on the
Work by any Federal, State or Local taxing authority, law, ordinance, rule or regulation, unless
otherwise specified herein.
Bonds: Upon the request and at the expense of Customer, CONTRACTOR will furnish
performance and payment bonds written by a corporate surety. The cost of any such bonds
is not included in the bid price and shall be paid for by Customer.
Indemnity: CONTRACTOR will indemnify and hold harmless Customer from all or such
portion of such loss or damage to persons or property to the extent arising directly from
CONTRACTOR’s performance of the Work and which is caused solely by the willful
misconduct or negligent acts of CONTRACTOR, its employees, or anyone under its control.
Customer will indemnify and hold harmless CONTRACTOR from all or such portion of such
loss or damage to persons or property to the extent arising directly from the willful misconduct
or negligent acts of Customer, its employees or anyone under its control, including other
contractors.
Payments: For Work commenced and completed in any one calendar month, Customer will
pay the full contract price in full upon the completion and acceptance of the Work. Otherwise,
all progress payments for the value of the Work completed plus the amount of materials and
equipment suitably stored on or off site, and final payment, shall be paid by the Customer to
CONTRACTOR within thirty (30) days after the Customer’s receipt of CONTRACTOR’s
payment application therefor.
Inspection and Acceptance: CONTRACTOR’s Work shall be considered complete
when CONTRACTOR notifies Customer that the Work has been completed in accordance
with the specifications. The Customer’s inspection of the Work shall take place within twenty-
four (24) hours from receipt of notice from CONTRACTOR. Customer’s acknowledgement on
the Acceptance Form shall constitute acceptance of the Work.
Retention: For Work completed, ninety-five percent (95%) of the contract value of Work
performed during each payment period will be payable as provided above up to a maximum
retention of $50,000.00. In any event, the full balance of the contract price shall be payable
in full upon completion and acceptance of the Work.
Late Payments and Attorney’s Fees: All sums not paid to CONTRACTOR when due,
for whatever reason, shall bear an interest rate of one and one-half percent (1½%) per month
or the maximum legal rate permitted by law, whichever is less; and all costs of collection,
including a reasonable attorney’s fee, shall be paid by Customer.
Changes: CONTRACTOR may only be ordered in writing by the Customer to make changes
in the Work within the general scope of the Work consisting of additions, deletions, changes
to the Schedule in duration or sequence, or other revisions, and the contract price and the
Schedule shall be adjusted accordingly. Before starting the changed Work, CONTRACTOR
will submit to the Customer a request for adjustment to the contract price and/or the Schedule.
CONTRACTOR will not commence any such changed or revised Work until receipt of a written
change order from the Customer incorporating an adjustment to the contract price and/or
Schedule in accordance with the above.
Force Majeure: CONTRACTOR shall not be responsible for delays or defaults where
occasioned by any causes of any kind and extent beyond its control, including but not limited
to: delays caused by the Owner, Customer, other subcontractors, architect and/or engineers,
delays in transportation, shortages of raw materials, civil disorders, acts of the government,
either in its sovereign or contractual capacity, labor difficulties or shortages, vendor
allocations, freight embargoes, fires, floods, epidemics, quarantine restrictions, accidents,
unusually severe weather, and acts of God. CONTRACTOR shall be entitled to an equitable
adjustment in the Schedule and Contract Sum for such delays as described above.
Customer Supplied Property: If the Work described herein requires Customer to supply
materials, equipment or other property, then Customer warrants that such items shall be fit for
the use for which they were intended. If such items do not conform, CONTRACTOR shall
notify Customer within a reasonable time after CONTRACTOR’s notice of the
nonconformance and CONTRACTOR may request additional compensation by change order.
CONTRACTOR Supplied Property: Whenever the Customer, its employees, contractors
and subcontractors (other than CONTRACTOR) use ladders, scaffolding, tools, vehicles,
equipment or property of any kind, either owned or rented by CONTRACTOR, Customer shall
indemnify and hold CONTRACTOR harmless from any and all claims, demands, damages,
causes of action and suits of whatsoever nature and kind, arising out of or connected with the
use of such, except when caused by the sole active negligence of CONTRACTOR.
Differing Site Conditions: If CONTRACTOR encounters conditions at the site differing
materially from those indicated in the Bid Documents, or unknown physical conditions at the
site of unusual nature differing materially from those ordinarily encountered by
CONTRACTOR’s trade, then CONTRACTOR shall promptly notify the Customer, stop its
Work and await instructions from Customer. If such conditions cause a change in the cost of,
or the time required for, performance of any portion of the Work, an equitable price adjustment
shall be made and the Schedule modified accordingly.
Notices: Any notice or written claim required to be submitted to the Customer on account of
charges, extras, delays, acceleration, or otherwise, shall be furnished within a reasonable time
period, and in a manner to permit the Customer to satisfy the requirements of the Contract,
notwithstanding any shorter time period otherwise provided therein.
Liens: Nothing shall serve to void CONTRACTOR’s right to file a lien or claim on its behalf
in the event that any payment to CONTRACTOR is not timely made.
Damages: Notwithstanding anything to the contrary in the Bid or Contract Documents,
CONTRACTOR will in no event be liable for consequential, incidental or special damages of
any kind for any reason whatsoever, whether arising in contract, tort or equity. This release
includes but is not limited to claims of negligence.
Preparation of Work Areas: The Customer shall prepare all Work areas so as to be
acceptable for mobilization by CONTRACTOR. CONTRACTOR will not be called upon to start
Work until sufficient areas are ready to ensure continued Work until job completion.
CONTRACTOR shall not be responsible for damage to any property (a) which is to be
replaced by Customer, or (b) which is damaged as a result of removal by CONTRACTOR
prior to performance of the Work in order to perform Work despite CONTRACTOR exercising
reasonable care to prevent damage.
Termination and Suspension: If the Customer does not pay CONTRACTOR in a timely
manner within seven (7) days from the time payment should be made as provided herein
(except where such nonpayment is due to defective Work by CONTRACTOR or other material
breach by CONTRACTOR), then CONTRACTOR may, without prejudice to any other remedy
it may have, upon two (2) additional days’ written notice to the Customer, stop its Work until
payment of the amount owing has been received. In the event CONTRACTOR resumes its
Work, the Schedule shall be equitably adjusted, and CONTRACTOR shall incur no liability for
such termination. Further, the contract price shall, by appropriate adjustment, be increased
by the amount of CONTRACTOR’s reasonable costs of shutdown, delay and startup. Further,
if CONTRACTOR’s Work is terminated or suspended for the convenience of the Customer or
any other party, then CONTRACTOR shall be paid for all Work performed to-date, for
equipment and materials already ordered, and for CONTRACTOR’s costs of early termination,
or in the case of suspension, CONTRACTOR’s costs of shutdown, delay and startup.
Notwithstanding anything herein to the contrary, CONTRACTOR shall not be liable for any
damage while CONTRACTOR is not on site.
Waiver: CONTRACTOR’s waiver of any term herein shall not be construed as a waiver of
such terms at any subsequent time.
Cooperation and Safety: CONTRACTOR’s Work shall be performed in accordance with
all applicable requirements of the Environmental Protection Agency, OSHA and other Federal,
State and Local regulations. Customer will cooperate with CONTRACTOR in all respects and
take all necessary actions to enable CONTRACTOR to meet all such requirements with
respect to the Work and the Project. Customer will cooperate with CONTRACTOR to assure
that all areas where the Work is being performed are closed to access by unauthorized
persons. Customer shall provide adequate security, including security personnel, to prevent
unauthorized entry into CONTRACTOR’s Work areas. The Customer will ensure that its
employees, representatives, agents and tenants will abide by all safety procedures applied by
CONTRACTOR on the Project. CONTRACTOR shall provide for its Work all safety signs,
direction signs and warning signs for the Project in accordance with statutory requirements.
All visitors to the Work areas shall be required to comply with CONTRACTOR’s safety
requirements. Customer agrees that CONTRACTOR’s insurers’ representatives shall have
the right to inspect CONTRACTOR’s Work and Project without hindrance.
Legal Effect: This proposal offers to the Customer the terms and conditions upon which
CONTRACTOR will perform the Work described herein and is made without regard to any of
the provisions in the Bid Documents not expressly incorporated herein by reference or
otherwise agreed to in writing signed by CONTRACTOR. Acceptance of the proposal is
expressly limited to the terms stated herein. Additional or inconsistent terms of Customer’s
form or other documents are objected to and rejected and shall be deemed a material
alteration thereof. Upon acceptance, this proposal will represent the entire agreement of the
parties with regard to performance and payment for the Work. The proposal may be changed
or withdrawn at any time prior to acceptance by notice to the Customer and will be deemed
withdrawn if not accepted by the Customer within thirty (30) days from the date hereof.