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20150616 Regular City Council Meeting - Packet California Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments,which are presented to the City Council in open session are available for public inspection. They may be inspected during regular business hours in the Office of the City Clerk at Vernon City Hall, 4305 Santa Fe Avenue; Vernon, California 90058, no appointment necessary,and on the City's website at www.ciiyofvemon.org. Americans with Disabilities Act("ADA"): In compliance with the ADA,if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at(323)583-8811. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda City of Vernon of vE� Regular City Council Meeting •t k4�o�� •�, Tuesday, June 16, 2015, 9:00 a.m. Council Chamber 4305 Santa Fe Avenue i y Vernon, California W. Michael McCormick,Mayor s�"XLY 11400 William J. Davis,Mayor Pro-Tem Luz Martinez, Council Member Melissa Ybarra, Council Member Yvette Woodruff-Perez, Council Member CALL TO ORDER& FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the City Council on any matter that is within the subject matter jurisdiction of the City Council. The public will also be given a chance to comment on matters which are on the posted agenda during City Council deliberation on those specific matters. If you would like to comment concerning a matter that is noticed for a public hearing today, please wait until that hearing is formally opened before making your comment. PRESENTATIONS 1. Personnel Matters - Service Pin Awards. May 2015 Anniversary Employee Name Job Title Years 1. Jose Zermeno Street Maintenance Worker 10 2. Marisela Martinez Purchasing Assistant 15 2. Update of Eco Rapid Transit/West Santa Ana Branch Transit Corridor. Regular City Council Meeting Agenda June 16, 2015 PUBLIC HEARINGS 3. Public Hearing on the adoption of the City of Vernon Fiscal Year 2015-16 State Appropriation Limit, following Article XIIIB of the State Constitution (often referred to as the GAAN Limit). A Resolution of the City Council of the City of Vernon adopting an Appropriation Limit for the 2015-2016 fiscal year,pursuant to Government Code Section 7910. Recommendation upon conclusion of the Public Hearing: A. Find that adoption of the proposed Fiscal Year 2015-2016 Appropriation Limit in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Adopt a resolution of the City Council of the City of Vernon Adopting an Appropriation Limit for the 2015-2016 Fiscal Year, Pursuant to Government Code Section 7910, (establishing the City's Appropriation Limit for the Fiscal Year 2015-2016 in the amount of$1,032,001,666 based on the percentage growth in the State Per Capita Personal Income and County Population). 4. Public Hearing on the approval of a Variance Application for Alcoa Bel Air, LLC located at 4700 Alcoa Avenue. Recommendation upon conclusion of the Public Hearing: A. Find that approval of the variance proposed in this staff report is categorically exempt under the California Environmental Quality Act (CEQA) in accordance with Class 32, Section 15332, "In- Fill Development Projects,"because: (i)the Project is consistent with the City's General Plan and zoning regulations, (ii)the proposed development occurs within City limits on a project site of no more than five acres substantially surrounded by urban uses, (iii) the Project site has no value, as habitat for any endangered,rare or threatened species, (iv)approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and(v)the site can be adequately served by all required utilities and public services; and B. Adopt a Resolution of the City Council of the City of Vernon approving a variance to Alcoa Bel Air,LLC from Section 26.5.1-6(d)of the Vernon City Code,for the property located at 4700 Alcoa Avenue. 5. Public Hearing on the approval of a Conditional Use Permit and Variance for Core Investments, LLC located at 5592 Santa Fe Avenue. Recommendation upon conclusion of the Public Hearing: (Items A-B): Page 2 of 14 Regular City Council Meeting Agenda June 16, 2015 A. Find that approval of the Conditional Use Permit and variance proposed in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Class 32, Section 15332, "In-Fill Development Projects," because: (i) the Project is consistent with the City's General Plan and zoning regulations, (ii) the proposed development occurs within City limits on a project site of no more than five acres substantially surrounded by urban uses, (iii) the Project site has no value, as habitat for any endangered, rare or threatened species, (iv) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and(v)the site can be adequately served by all required utilities and public services. Therefore,the Project complies with the findings listed above and may be considered exempt from the California Environmental Quality Act under Section 15332 of the CEQA Implementation Guidelines; and B. Adopt a Resolution of the City Council of the City of Vernon Approving a Conditional Use Permit and Variance for Core Investments,LLC to Construct and Operate a Commercial Facility Located at 5592 Santa Fe Avenue. CONSENT CALENDAR-All matters listed on the Consent Calendar are to be approved with one motion. Items may be removed from the Consent Calendar by any member of the Council. Those items removed will be considered immediately after the Consent Calendar. Claims Against the City—Received and Filed 6. None Minutes—To be Received and Filed 7. Minutes of the Regular City Council Meeting held May 19, 2015. 8. Minutes of the Regular City Council Meeting held June 2, 2015. Warrant Registers 9. Approval of City Payroll Warrant Register No. 708, totaling $2,823,369.58, which covers the period of May 1 through May 31, 2015, and consists of the following: A. Ratification of direct deposits, checks and taxes totaling $2,027,903.11; and B. Checks and electronic funds transfers paid through General bank account totaling $795,466.47. Page 3 of 14 Regular City Council Meeting Agenda June 16, 2015 10. Approval of City Warrant Register No. 1426,totaling$739,141.26,which covers the period of May 26 through June 8, 2015, and consists of the following: A. Ratification of wire transfers totaling $388,181.10; and B. Ratification of the issuance of early checks totaling $131,733.89; and C. Authorization to issue pending checks totaling $219,226.27. 11. Approval of Light & Power Warrant Register No. 391, totaling $3,121,347.12, which covers the period of May 26 through June 8, 2015, and consists of the following: A. Ratification of wire transfers totaling $2,896,630.03; and B. Ratification of the issuance of early checks totaling $111,3 82.78; and C. Authorization to issue pending checks totaling $113,334.31. 12. Approval of Gas Warrant Register No. 179, totaling $554,822.82,which covers the period of May 26 through June 8, 2015, and consists of the following: A. Ratification of wire transfers totaling $518,663.15; and B. Ratification of the issuance of early checks totaling $24,538.68; and C. Authorization to issue pending checks totaling $11,620.99. City Administration Department 13. Report on Docket III Grants Awarded by Vernon CommUNITY Fund Grant Committee. Recommendation: A. Receive and file the report as it is being provided for information purposes only pursuant to section 2.167(e) of the Vernon Municipal Code. Fire Department 14. Activity Report for the period of May 16 through May 31, 2015, to be received and filed. Health and Environmental Control Department 15. May 2015 Monthly Report, to be received and filed. Page 4 of 14 Regular City Council Meeting Agenda June 16, 2015 Police Department 16. Activity Log and Statistical Summary of Arrests and Activities for the period of May 16,through May 31, 2015, to be received and filed. Public Works,Water and Development Services Department 17. Receive and file the City of Vernon 2014 Traffic Collisions Review. Recommendation: A. Find that the acceptance of the enclosed 2014 Traffic Collisions Review is categorically exempt under the California Environmental Quality Act(CEQA)in accordance with Section 15306(Class 6) which consists of basic data collection, research, experimental management and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource; and B. Receive and file the City of Vernon 2014 Traffic Collisions Review. NEW BUSINESS City Administration Department 18. Resolution Adopting an Amended and Restated Citywide Fringe Benefits and Salary Resolution in Accordance with Government Code Section 20636(b)(1) and Repealing All Resolutions in Conflict Therewith. Recommendation: A. Find that approval of the resolution proposed in this staff report is exempt under the California Environmental Quality Act(CEQA) in accordance with Section 15061(b)(3),the general rule that CEQA only applies to projects that may have a significant effect on the environment. B. Adopt the resolution amending and restating the Citywide Fringe Benefits and Salary Resolution, effective June 28, 2015, to reflect the following provisions: (Items 1-3): 1) Amend Exhibit A, Classification and Compensation Plan, as follows: a) In accordance with City Council adoption of the fiscal year 2015-2016 budget on June 2, 2015, revise or add the following job classifications with the corresponding salary ranges: ■ Add Assistant Fire Marshall (M29 - $7,221 - $8,778 —Management Group) ■ Add Industrial Development Director (E39 - $11,762 - $14,297 — Executive Group) Page 5 of 14 Regular City Council Meeting Agenda June 16, 2015 ■ Change salary grade for Utilities Customer Service Supervisor to (M26 - $6,238 - $7,582—Management Group) ■ Add Police Community Services Officer (G16 - $3,830 - $4,655 Teamsters Group) ■ Add Administrative Fire Battalion Chief salary range(FA38 - $11,203 - $13,616 - Fire Management Group) b) In accordance with Citywide succession planning efforts, add the following unfunded job classifications with the corresponding salary ranges to create future career development paths within the respective job series: ■ Add Building Inspector(G25 - $5,940 - $7,221- Teamsters Group) ■ Add Senior Electrical Inspector(G27 - $6,550 - $7,962- Teamsters Group) ■ Add Senior Plumbing and Mechanical Inspector (G27 - $6,550 - $7,962 — Teamsters Group) c) Add salary range C17 for the Senior Administrative Assistant (Confidentiao classification, which is the same as the salary range for the Senior Administrative Assistant classification ($4,021 - $4,887 per month). d) Correct Step 4 of Police Dispatcher Lead to $5,388 per month and add salary range FA31 ($7,962 - $9,677) for forty (40) hour work schedule of an Administrative Fire Captain. e) Implement the changes set forth in the various Memoranda of Understanding between the City of Vernon and the respective employee organizations. 2) Amend Section 7, Sick Leave, to include part-time and temporary sick leave accruals. 3) Amend Section 11, Automobile Allowance and Reimbursement for Expenses, to add the Industrial Development Director and Administrative Fire Battalion Chief to the list of classifications eligible for Automobile Allowance. 19. Resolution approving the Amendment No. 1 to the Memorandum of Understanding by and between the City of Vernon and the Vernon Police Officers' Benefit Association for the period of July 1, 2014 through June 30, 2017. Recommendation: (Items A-C): A. Find that approval of the proposed Amendment No. 1 to the Vernon Police Officers Benefit Association 2014-2017 Memorandum Of Understanding to Add Police Corporal Lead Premium Pay is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and Page 6of14 Regular City Council Meeting Agenda June 16, 2015 B. Adopt a resolution of the City Council of the City of Vernon approving the Amendment No. 1 to the Memorandum of Understanding by and between the City of Vernon and the Vernon Police Officers' Benefit Association for the period of July 1, 2014 through June 30, 2017 (to add Article Three, Section 13 —Police Corporal Lead Premium Pay). C. Authorize the City Administrator and Director of Human Resources to execute the attached Amendment No. 1 to the 2014-2017 Memorandum of Understanding between the City of Vernon and employees represented by the City of Vernon Police Officers Benefit Association. 20. Resolution approving the Amendment No. 1 to the Memorandum of Understanding by and between the City of Vernon and the Vernon Firemen's Association for the Period of July 1, 2014 through June 30, 2016. Recommendation: A. Find that approval of the proposed Amendment No. 1 to the Vernon Firemen's Association 2014- 2016 Memorandum of Understanding to add Apparatus, Equipment and Personal Protective Equipment (PPE) Premium Pay is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment.; and B. Adopt a resolution of the City Council of the City of Vernon approving the Amendment No. 1 to the Memorandum of Understanding by and between the City of Vernon and the Vernon Firemen's Association for the period of July 1, 2014 through June 30, 2016 (to add Apparatus, Equipment and Personal Protective Equipment(PPE) Premium Pay). C. Authorize the City Administrator and Director of Human Resources to execute the attached Amendment No. 1 to the 2014-2016 Memorandum of Understanding between the City of Vernon and employees represented by the City of Vernon Firemen's Association. 21. Resolution approving the Amendment No. 1 to the Memorandum of Understanding by and between the City of Vernon and the Vernon Fire Management Association for the Period of July 1, 2014 through June 30, 2016. Recommendation: (Items A-C): A. Find that approval of the proposed Amendment No. 1 to the Vernon Fire Management Association 2014-2016 Memorandum Of Understanding to Add Administrative Fire Battalion Chief Premium Pay is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. B. Adopt a resolution of the City Council of the City of Vernon Approving the Amendment No. 1 to the Memorandum of Understanding by and between the City of Vernon and the Vernon Fire Page 7 of 14 Regular City Council Meeting Agenda June 16, 2015 Management Association for the Period of July 1, 2014 through June 30, 2016 (to add Administrative Fire Battalion Chief Premium Pay). C. Authorize the City Administrator and Director of Human Resources to execute the attached Amendment No. 1 to the 2014-16 Memorandum of Understanding between the City of Vernon and employees represented by the City of Vernon Fire Management Association. 22. Authorization to Issue Additional Purchase Orders to Tyler Technologies, Inc. for Fiscal Year 2014-2015. Recommendation: A. Find that the approval of additional Purchase Orders for Tyler Technologies, Inc. is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Authorize the issuance of$40,000 in additional Purchase Orders to Tyler Technologies, Inc. in fiscal year 2014-2015 for the following (the issuance of said Purchase Orders is exempt from competitive bidding and competitive selection under the sole source exemption outlined in Section 2.17.12(A)(2) of the Vernon Municipal Code): (Items 1-3): 1. Customization needed for the Tyler Cashiering Software used by the Finance Department at a cost not to exceed$10,000; and 2. Customization of reports/forms used by Public Works and Fire Departments at a cost not to exceed$15,000; and 3. Payment of outstanding invoices at a cost of approximately $15,000. 23. Authorization to Issue an Open Purchase Order to Insight Public Sector for Fiscal Year 2014-2015 for the Purchase of Various IT Equipment. Recommendation: A. Find that approval of an open Purchase Order for the purchase of IT related equipment from Insight Public Sector is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Authorize the issuance of an open Purchase Order to Insight Public Sector in an amount not to exceed$130,000 for fiscal year 2014-2015 for the purchase of various IT related equipment. Page 8 of 14 Regular City Council Meeting Agenda June 16, 2015 Finance Department 24. Resolution adopting an Annual Statement of Investment Policy for Fiscal Year 2015-2016 and Delegating Investment Authority to the Finance Director/City Treasurer. Recommendation: A. Find that approval of the investment policy for Fiscal Year 2015-2016 is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Approve a Resolution of the City Council of the City of Vernon Adopting an Annual Statement of Investment Policy for Fiscal Year 2015-2016 and Delegating Investment Authority to the Finance Director/City Treasurer. 25. Resolution for Issuance of 2015 Electric System Revenue Bonds. A Resolution of the City Council of the City of Vernon authorizing and approving the issuance of electric system revenue bonds; approving the supplemental indenture of trust pursuant to which such bonds are to be issued; approving a disclosure document,a contract of purchase,a continuing disclosure agreement and other documents in connection with such bonds; and authorizing certain other matters relating thereto. Recommendation: A. Find that approval of the resolution to issue 2015 Electric System Revenue Bonds is exempt under the California Environmental Quality Act (CEQA) in accordance with Sections 15060(c)(3), 15378(b)(4), and 15378(b)(5) because the activity approved by the Resolution relating to the refinancing or funding of previously-approved projects will not result in direct or indirect physical changes in the environment and, therefore, is not a "project," as defined in Section 15378 of the CEQA Guidelines; and B. Approval of a resolution for the issuance of 2015 Electric System Revenue Taxable Series A Bonds in the par amount of $110.3 million to provide funds to (a) refund a portion of the City's outstanding 2009 Series A Electric System Revenue Bonds, (b) finance costs of terminating two existing swap agreements by reimbursement of certain capital improvements from the electric system previously paid from the Light & Power Fund, (c) fund a deposit to the Debt Service Reserve Fund, and(d)pay cost of issuance of the 2015 Series Bonds. The resolution provides for flexibility to accommodate interest rate fluctuations that would impact market conditions. Page 9 of 14 Regular City Council Meeting Agenda June 16, 2015 Fire Department 26. Resolution adopting an Amended and Restated General Fee Schedule. Recommendation: A. Find that approval of the resolution proposed in this staff report is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt a Resolution of the City Council of the City of Vernon Approving and Adopting an Amended and Restated General Fee Schedule. Gas and Electric Department 27. Economic Development Rate Agreement and Amendment to the Interruptible Service Agreement by and between the City of Vernon and Matheson Tri-Gas. Recommendation: A. Find that the Economic Development Rate and the Amendment to the Interruptible Service Agreements by and between the City of Vernon and Matheson Tri-Gas are exempt under 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, because the respective agreements do not have an impact; and B. Approve the Economic Development Rate ("EDR") agreement with Matheson Tri-Gas ("Matheson") which will extend the eligibility term for the incentive from five (5) years to ten (10) years with a combined economic development rate discount and voltage discount of up to a total of 25%; and C. Approve an amendment to the Interruptible Service Agreement with Matheson Tri-Gas which states that the kW demand shall be increased, allowing Matheson to be permitted to change the Firm Service Level, and agreeing to their receipt of interruptible service credit in accordance with the applicable TOU-I rate schedule in effect. Health and Environmental Control Department 28. Authorization to Submit an Application to Receive and Spend Funds for the Used Oil Payment Program—FY 2015/2016. Recommendation: (Items A-B): A. Find that granting authority to submit and administer the funding application and related documents at issue in this staff report constitute administrative activities that do not constitute a Page 10 of 14 Regular City Council Meeting Agenda June 16, 2015 "project" under California Environmental Quality Act (CEQA) Guidelines section 15378, and even if it did constitute a "project," the submission and administration of this application and related documents is exempt under CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment. B. Approve a resolution of the City of Vernon Approving and Authorizing the Execution of an Application for the 2015/2016 Used Oil Payment Program. 29. Approval of License and Support Agreement with Decade Software Company, LLC for Environmental Health Software and Related Services. Recommendation: A. Find that merely making recommendations to the City Council or to City Staff do not constitute actions subject to the California Environmental Quality Act (CEQA), and therefore such actions are exempt pursuant to CEQA Guidelines section 15061 (b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve the License and Support Agreement with Decade Software Company, LLC for the term of July 1, 2015 through June 30, 2016, in an amount not to exceed$17,898.00. Human Resources Department 30. Adoption of City of Vernon Personnel Policies and Procedures: Terms of Employment (I-1) (revised); and Salary Plan Administration II-3 (revised). Recommendation: A. Find that approval of the proposed personnel policy and procedures in this staff report is exempt under the California Environmental Quality Act(CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt the attached Personnel Policy and Procedures, Terms of Employment I-1 (revised), Salary Plan Administration II-3 (revised) and incorporate it into the Personnel Policies and Procedures Manual; and C. Authorize the City Administrator and the Director of Human Resources to execute and distribute the above-referenced policy to all employees. Page 11 of 14 Regular City Council Meeting Agenda June 16, 2015 Police Department 31. Approval of Law Enforcement Data Sharing Agreement with Los Angeles Police Department and the Los Angeles County Sheriffs Department. Recommendation: A. Find that the approval of the proposed Memorandum of Agreement("MOA") is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b) (3), the general rule is that CEQA only applies to projects that may have an effect on the environment; and B. Approve the MOA with the Los Angeles Police Department ("LAPD") and the Los Angeles County Sheriff's Department ("LASD"), and authorize the Police Chief to execute the MOA on behalf of the City, for the purpose of sharing data with LAPD and LASD to support cross- jurisdictional analysis of crime and criminal suspects and/or organizations. Public Works,Water and Development Services Department 32. Acceptance of Work related to Contract No. CS-0428 — Office Reconfiguration of City Administration, City Attorney,Information Technology and Human Resources Department from Victor Palos Development and Construction. Recommendation: A. Find that the acceptance of work related to the Capital Improvement Project is categorically exempt under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301, Existing Facilities, part (a), because the project is merely to make interior or exterior alterations involving partitions,plumbing, and electrical conveyances; and B. Accept the work related to City Contract No. CS-0428 — Office Reconfiguration of City Administration, City Attorney, Information Technology and Human Resources Department from Victor Palos Development and Construction; and C. Authorize the recording of the Notice of Completion for City Contract No. CS-0428. 33. Authorize Professional Services Agreement with Santa Fe Building Maintenance for Janitorial Services. Recommendation: (Items A-B): A. Find that entering into the proposed contract for Janitorial Services is exempt under the California Environmental Quality Act (CEQA) in accordance with (a) CEQA Guidelines Section 15061 (b)(3), the general rule that CEQA only applies to projects that may have an effect on the Page 12 of 14 Regular City Council Meeting Agenda June 16, 2015 environment and(b) Section 15301, because the proposed service involves an existing project with negligible or no expansion of use; and B. Authorize the City Administrator to enter into a Professional Services Agreement with Santa Fe Building Maintenance for Janitorial Services for a three year period at an amount not to exceed $303,948.00. ORDINANCES 34. Ordinance No. 1229-An Ordinance of the City Council of the City of Vernon adding Article XVI to Chapter 24 of the Vernon Municipal Code relating to expedited permitting procedures for small residential rooftop solar systems. (second reading) Recommendation: A. Find that the adoption of an ordinance related to an expedited permitting procedure for small residential rooftop solar systems is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt Ordinance No. 1229 adding Article XVI to Chapter 24 of the Vernon Municipal Code relating to expedited permitting procedures for small residential rooftop solar systems. ORAL REPORTS 35. City Administrator Reports — brief reports on activities and other brief announcements by the City Administrator and Department Heads. 36. City Council Reports—brief report on activities, announcements, or directives to staff. CLOSED SESSION 37. CONFERENCE WITH LEGAL COUNSEL -PENDING LITIGATION Government Code Section 54956.9(a) One Case: Former BKK Carson Dump California Department of Toxic Substances Control Docket No. I&SE-RAO 05/06-014 Page 13 of 14 Regular City Council Meeting Agenda June 16, 2015 ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall,located at 4305 Santa Fe Avenue, Vernon, California, and on the City's website,not less than 72 hours prior to the meeting set forth on this agenda. Dated this 11 th day of June 2015. By: Maria E. Ayala, City Clerk Page 14 of 14 RECEIVED Q�� o��ecr tN�Jy JUN 0 2 2015 STAFF REPORT CITY ADMINISTRATION HUMAN RESOURCES DEPARTMENT DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Teresa McAllister,Director of Human Resources Department Originator: Veronica Avendano,Administrative Secretary RE; Service Pin Awards for May 2015 Recommendation A. City Council to present service pins to those employees hired in May. Background Submitted herewith lists the employees who are eligible to receive their service pin based on the number of service years with the City of Vernon. Fiscal Impact None. Attachment(s) 1. May 2015 Service Pin employee list. Page 1 of 1 `� � O O "�+; N � � � P �, � H °� 0 �� C1� � N � � u W' � � V N � w N '� O w � P 0 v G � W �' d ?^ O o �� W � N `� N ®®�fj® of wFR �r ��(� RECEIVED N 1p15 � ..,. JUN 11 2015 STAFF REPORT CITY ADMINISTRATION Public Works, Water and Development Services DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson, Director of Public Works, Water, and Development Services RE: Update of Eco Rapid Transit/West Santa Ana Branch Transit Corridor Discussion Item Members of City Council have expressed an interest on obtaining an update of the Eco Rapid Transit/West Santa Ana Branch Transit Corridor Project. An oral Report will be given by the Director of Public Works, Water and Development Services on the current status of the project. Background The Eco Rapid Transit Project also referred to as the West Santa Ana Branch Transit corridor project continues to be in the preliminary design phase of the project. This original project consisted of a transit line from Orange County to Union Station in Downtown Los Angeles. Various modes of transportation were considered including Mag Lev High Speed rail, Light Rail, Rapid Bus and Street Car designs. In February 2013, the Southern California Association of Governments (SLAG) completed the Pacific Electric Right-of-Way/West Santa Ana Branch (PEROW/WSAB) Corridor Alternative Analysis (AA) study. The Orange County Transportation Authority has decided not to pursue the project any further. The Los Angeles County Metropolitan Transportation Authority (Metro) however, has decided to continue studying the corridor within their jurisdiction of LA County. The corridor is approximately 20 miles encompassing the following cities: Los Angeles, Vernon, Huntington Park, Maywood, Bell, Bell Gardens, Cudahy, South Gate, Lynwood, Paramount, Downey, Bellflower, Lakewood, Artesia and Cerritos. Figure 1 shows the entire WSAB Transit Corridor Study Area. Before proceeding with a draft environmental document, Metro has decided to conduct a Technical Refinement Study to further analyze issues raised during the AA Study. Figure 1-1 WSAB Transit Study Area LOS ANGELES tm °VERNO° MAYWOOD ®°UWAr, ' COMMERCE HUNTINGI ON PARK O BELL NCUDAFS BELL GARDENS m SOUTH GATE v' Existing(or Underway) DOWNEY Blue Line Expo Line LYNWOO Red Line Purple Line Gold Line -• - IO Green Line ® ``° Regional Connector(2020) O Proposed PARAMOU BELLFLOWER NORWALK WSAB Station East Bank °- West Bank3 CERRIT(- �t WestBank-Pacific/Alameda WestBank-Alameda itttttt�. WestBank-PaclficNignes ~ ARTESIA WestBank-AlamedaNignes °� 1� HP Alignment Alt. ° Northern Alignment (South Huntington Park) Southern Alignment (South of Paramount) *See Task 4.1 Proposed Allternate 5sation Lomtlon and Realignment Report During the SCAG AA, several alignment options were developed and reviewed by the stakeholders. Metro provided to SCAG comments concerning the alignment options but these comments were not addressed to Metro's satisfaction due to time and budget constraints. A general overview of the Metro comments included request for more details about the configuration of the alignment options; clarification of access into Union Station and its vehicle capacity; the need for coordination with other railroads; operational concerns; concern for impacts to the Metro Green Line and I-105 freeway; clarification of determination for the grade crossing configurations; concern for impacts to the Metro Green and Blue Lines capacity; and, verification of cost estimates and funding availability. Ultimately SCAG recommended two options carry forward for further consideration by the agency of jurisdiction. These two options were the East Bank and West Bank Option 3 (West Bank 3) alignments (Figure 2). The West Bank 3 alignment was recommended since it accessed a greater number of key cities and destinations that resulted in higher ridership along with good connections to the existing Metro rail system and had stronger support from the cities and agencies. The East Bank was also recommended so that two alignments into Union Station were carried forward for additional study. For the Technical Refinement Study, these options were analyzed and were determined to be viable. Figure 2: East Bank and West Bank Options recommended by SCAG LOS ANGELES tm N: o �O VERNON MAYWOOD 0-•..0 COMMERCE HUNTING1vil PARK 0 BELL BELL GARDENS CUDAtCY m SOUTH GATE 0 DOWNEY LYNWOO \M\ Existing(or Underway) Blue Line aI Expo Line 0 -� Red Line l� Purple Line 0, Gold Line Green Line �i�PARAMOUP BELL FLOWEtJ NORWAL.K Regional Connector(2020) Proposed ® 0 CERRITC O WSAB Station East Bank DARTESIX l� West Bank 3 . . 0 Northern Alignment (South of Huntington Park) Southern Alignment (South of Paramount) *See Task 4.1 Proposed Allternete Station Location and Realignment Report Metro's consultant is now in the process of preparing a technical refinement study to look at the challenges with the northern alignment of the project. The Technical Refinement Study is not a revision to the PEROW/WSAB AA, but rather a focused study on the SCAG AA recommended two alignment alternatives,the West Bank 3 and East Bank, utilizing light rail technology. The results of this study will be used to assist Metro in deciding which alternative(s)to carry forward into the environmental review phase. The study includes a two-step process; first, refine the two alignment alternatives, and second, develop a trade-off analysis of the two alternative alignments. The trade-off analysis includes key elements, such as ridership, cost estimates, feasibility, and challenges for the two alternative alignments. The analysis will be documented in a final refinement report provided at the end of the 18-month study period. Based on the initial results of the study, Metro is recommending that four alternative for the northern alignment to be carried forward to the Environmental Phase (Figure 3). All four alternatives would be for a light rail design. Two of these alignments would cut through the center of Vernon heading southerly along the BNSF Harbor Subdivision railroad right of way which parallels Santa Fe Avenue to the east to a station between Vernon Avenue and Pacific Boulevard. From this station the transit corridor would travel turn easterly and southerly along Pacific Boulevard at grade to the southerly boundary of the City(Figure 4). The other two options to be carried forward would be an aerial transit line that would parallel the Blue Line light rail system along Long Beach Boulevard one block west of the City of Vernon's Boundary (Figure 5). The City Council by a December 23, 2014 letter has advised Metro that it supports the Blue Line alternative. Staff has followed up with a letter reiterating this position and raising concerns regarding the adequacy of the study in the Vernon area especially in regards to a street running train on Pacific Boulevard and concerns with adequacy of Santa Fe Avenue right of way to accommodate an aerial structure. The next steps include preparing an environmental review of the project. As part of the environmental phase Metro will further study the West Santa Ana Branch impacts and benefits to determine a preferred alignment. The environmental report will look at among other things the how will the light rail system feed into Union Station,traffic impacts, real estate acquisition needs, utility relocation requirements, soil conditions, existing underground structures, coordinate with the CPUC and determine a location for a maintenance facility. While a light rail transit line conveniently located through the center of Vernon could provide quality transit opportunities to Vernon businesses and residents, it must be constructed in a way where it will not adversely impact the economic vitality of the City. It appears that Metro is intent on studying alignments both through and around Vernon. During the environmental phase of this project the City must be diligent in its review to insure that the transit line will be constructed in a manner that will benefit the community while minimizing the negative effects. Figure 3: The Four Recommended Northern Alignments �41 101 � G F�J v Kearv�cY 4bdv lry v BPS,?r aSh O Ist ot! � fClr/'Lt r ® r a c Goa d'th 6 � th 0 LOS ANGELE—)�iilf(IIfYY�ifilw O nth �otce Ith 0 Qa` a° yth �� 3rd ya c OJ m ter K ��9to�r ;ate c Sth m � F Zo ® Porter 0 ?a N a v O!y 8tl� C � �a v • O A vela 25th 2.5th fytshnigton rson 7sr/r Martin Luther King Jr 41st 37th 38th ® Vernon Existing(or Underway) O I. O Blue Line Expo Line I Leonis District - Red Line p o Purple Line VERNON c c Gold Line o N o 0 Regional Connector(2020) - Proposed ® M A Y W O OWSAB Station O Slauson West Bank-Pacific/Alameda West Bank-Alameda West Bank-PacificNignes �O-. West Bank-AlamedaNignes a HPAlignmentAlt. a a Malabar Option Gage Northern Alignment H U N T I N G TO N PA g E L L (South of Huntington Park) , unman d E� to I tee �'�•� �,� - r, � �, ems, .,.. t r f - o m Ski.R � '• .w xr � - Pacific/Vernon •._.rt x oil Street-run i ''_ e+eil L.Eo i4vAi4'�f{� _i a�,.,�:sei■.�'�, ;C.:. • t ~� ,_......,� �. �q „v' � `Yi i�J'1 1. `�...,'�■ @ 1�� '� R LEGEND +two �:: Rail Crossing +�` 4 _. HUN7( T N PARKAerial � z. ,taus ax sue.•... »su' I' :.�. Street-running,or Pacrfic/Randolph ( f • _, , - " a et • JantloBored Tunnel as noted Cut and Cover,or v { m La Maaqu s Bra�tch. ■ WSAB Stationsit t n _ ew a ;• u O" r �. ry' . „ e t p {,. "* {off-streetGage Station - WB 3C-# Challenge Number t o' r, e k ,,r yi.'� 40 per SCAG AA . hlunfitnn leek x s Gage f S++WY st"'...•Y S- w- r G-a{ { aW'wiN�'J LA WEST BANK - PACIFIC/VIGNES 3Of3 ro <. fit]"� Y# $:•.-� � � a p..a N .y . 4 V �S 4.1 • r Re w�iy? 44 `t - ar € �- Wig;+ •s�•� �� •��"�Irl��. Vernon �?"'�� . eea,�t�_ A IF MH PRO a ` ` y. a. � � : • �"�i.�'�1: ram{ �.= 1' r _� � �. �• �:�r �fir. �4r '� �'.�� —ts".4� '�•c �f ' r* • �i s YrR'f ++��yy�� •� - � � r •f Slauson ' N. ' +n .9 z _ 3 jj,,.� ti 4't 1 iR� $ZiLi.�50h' vim :.C. 'y � ,s •fie.. t t Pacific/Randolph, �:� street n t�!'.�� apt °• y�r� � '_i t. _ Ll':�' � � 3` ,h e ' � ai��¢t :k'�ss i, 1�CS°aY"�&• r .k a .=} i l�^. R1 a _-,t'�' �� , Fj T3 OfFstreet FJa6WM `'' { 'r. r �a] ;� ( + �:. �•,� 4 `fit vi„ - �' a tt tit. " . .. p •! �*Ssa� . ark -� �,,. �-, �3'k,- 4, , MU t7 dD"i-:.Pa?k � .a�A n.•c sb L x .�, Gage IL s tll• " WEST BANK - ALAMEDA 3Of3 OF vER� JF04" v, G� 4305 Santa Fe Avenue City of Vernon Vernon,CA 90058 a (323)583-8811 GSLVELY it10V9 I NOTICE OF PUBLIC HEARING The City Council of the City of Vernon will conduct the following Public Hearing, which you may attend. PLACE: Vernon City Hall City Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 DATE & TIME: Tuesday, June 16, 2015 at 9:00 a.m. (or as soon thereafter as the matter can be heard) SUBJECT: Consider Adoption of the Fiscal Year 2015-2016 proposed Governmental Gann Appropriation Limit. REQUEST: All invited parties are invited to be present and to submit statements orally or in writing before or during the meeting REVIEW OF THE Subject documents are available for inspection by the public at the FILE: Vernon City Hall, City Clerk Department, 4305 Santa Fe Avenue, Vernon, California 90058, Monday thru Thursday, 7:00 a.m. to 5:30 p.m. and on the City's website at: http://www.cilyofvemon.org/govemment/public-meetinjzs PROPOSED CEQA Staff plans to recommend that the Vernon City Council determine FINDING: that the proposals will not have a significant effect on the environment and are exempt from the California Environmental Quality Act(CEQA). The conditions imposed on the conditional use permit are designed to protect the environment, public health, safety and general welfare. If you desire to challenge the actions taken by the City Council or any portion thereof in court, you may be limited to raising only those issues you or someone else raised at the hearings described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. The hearings may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of the-public hearing. Dated: Maria E. A a, City Clerk of � ®� RECEIVED IG,V GY{N9JL�0. �. � JUG 0 9 2015 STAFF REPORT CITY ADMINISTRATION G� Finance Department DATE: June 16, 2015 7i;T TO: Honorable Mayor and City Council FROM: William Fox, Finance Director V RE: Recommendation for Fiscal Year 2015-2016 Appropriation Limit mmmw Recommendation It is recommended that the City Council: A. Find that adoption of the proposed Fiscal Year 2015-2016 Appropriation Limit in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Establish the City's Appropriation Limit for the Fiscal Year 2015-2016 in the amount of $1,032,001,666 based on the percentage growth in the State Per Capita Personal Income and County Population. Background California voters approved an initiative on November 6, 1979 that added Article XIIIB to the State Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. This State Appropriation Limit is often referred to as the Gann Limit, after Paul Gann, the author of the measure placing the limit in the State constitution. The Appropriation Limit is based on actual appropriations during the 1978-1979 fiscal years, as increased each year using specified population and inflationary growth factors. The original legislation implementing the provisions of Article XIIIB became effective January 1, 1981. In accordance with that legislation, the governing body of each government jurisdiction must, by resolution, establish its annual Appropriation Limit for the coming year at a regularly scheduled meeting or noticed special meeting. The original Article XIIIB (Proposition 4) and its implementing legislation, Chapter 1205/80, was modified in June 1990 by Proposition 111 and SB 88 (Chapter 60/90). Significant changes imposed by Proposition l I l include the following: • The provision of a choice in methodologies for determining the annual inflation factor between (1) growth in California per capita income, or (2) growth in non-residential assessed valuation due to new construction within the City. • The provision of a choice in methodologies for determining the annual population growth factor between (1) City population growth, or(2) County population growth. • Regulations allowing the exclusion of "qualified capital outlay" expenditures from calculation of the Limit. • Provision of a process for avoiding tax refunds if a city falls sufficiently below the Limit in the next fiscal year. The revised language provides two years, beyond the second year, to refund any remaining excess during which jurisdictions can seek to obtain a successful override vote. As a result of Proposition 111, the City is required to choose between two annual inflation factors and two population factors. • The choice offered for the annual inflation factor is (1) the growth in California per capita income or (2) the growth in non-residential assessed valuation due to new construction within the City. • The choice offered for the annual population growth factor is (1) the growth in City or (2) County population. The City calculated its appropriation limit based on the non-residential assessed valuation due to new construction as its annual inflation factor and the County's population growth as its annual population growth factors for the eight (8) years prior to Fiscal Year 2014-2015. The City calculated its appropriation limit based on the State per capita personal income as its annual inflation factor and the County's population growth as its annual population growth factors for Fiscal Year 2014-2015 and Fiscal Year 2015-2016. When the City prepares its annual budget each year, the appropriations subject to the Appropriation Limit is typically well below the Appropriation Limit as shown below: Appropriation Subject to Fiscal Year Appropriation Limit the Limit Amount Under Limit 2006-2007 $228 million $44 million $184 million 2007-2008 $251 million $50 million $201 million 2008-2009 $283 million $77 million $206 million 2009-2010 $304 million $48 million $256 million 2010-2011 $372 million $41 million $331 million 2011-2012 $627 million $62 million $565 million 2012-2013 $1,022 million $47 million $975 million 2013-2014 $962 million $55 million $907 million 2014-2015 $989 million $52 million $937 million 2015-2016 $1,032 million $57 million $975 million Over the last ten (10) years, and including 2015-2016, the City's appropriations subject to the Appropriation Limit have remained well below the Appropriation Limit. Given the size of this gap, it is unlikely that the City will exceed the Appropriation Limit in the upcoming years without significant changes to the City's tax structure. The notice indicating the documentation used in the determination of the appropriation limit provided herewith was posted on the City's website on June 6, 2015 and said documentation is available for public inspection at the Office of the City Clerk. Fiscal Impact There is no fiscal impact since the City continues to remain well below the Appropriation Limit. Attachment 1: Fiscal Year 2015-2016 Appropriation Limit Calculation Attachment 2: Fiscal Year 2015-2016 Alternative Adjustment Factors WF/MH: Attachment 1 City of Vernon Fiscal Year 2015-2016 Appropriation Limit Calculation CITY OF VERNON Page 1 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE A. CALCULATION OF BASE YEAR 1978-79 STEP 1. 1. Proceeds from Taxes Property taxes 1,061,619 Othertaxes 4,890,969 Investment earnings 302,913 Revenue for Other-Agencies 831,739 Less: Railroad Crossing Grant 9,277 822,462 SUB-TOTAL 7,077,963 Contribution from Enterprise Fund 1,549,490 Miscellaneous 5,306 TOTAL PROCEEDS FROM TAXES 8,632,759 2. Non-Proceeds from Taxes A. User Fees by Function Public Works Construction Permits 121,551 Streets&Curbs 1,604 Engineering Services 82,706 SUB-TOTAL 205,861 Health Food Vehicle Permits 15,516 Public Health Permits 47,578 SUB-TOTAL 63,094 Police Police Services 5,944 SUB-TOTAL 5,944 TOTAL USER FEES 274,899 B. Interfund Service Charges 0 C. Cost-Reimbursement Items 0 D. Donations and Grants(non-State)Railroad Crossing Grant 9,277 E. Exempt Revenues-(Mandated Cost Reimbursement,Fines, Proceeds from Bond Issues)Fines,Forfeits,and Penalties 67,303 TOTAL NON PROCEEDS FROM TAXES 351,479 GRAND TOTAL 8,984,238 STEP 2. 1. Match Cost to User Fees 2. Revenues less than Costs 3. No portion of User Fees considered"Proceeds of Taxes" STEP 3. 1. All Revenues of the City 8,984,238 2. Non Proceed of Taxes (351,479) 3. User Fees in excess of Costs 0 4. Less Debt Service Appropriations 0 TOTAL 8,632,759 STEP 4. 1. Total all actual Appropriations,as amended for 1978-79 8,586,750 Transfers to Reserves 3,988,675 12,575,425 2. Subtract Non Proceeds of Taxes (351,479) BASE YEAR LIMIT(1978-79) 12,223,946 EXHIBIT"A" A-1 CITY OF VERNON Page 2 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE B. 1979-80 APPROPRIATION LIMIT CALCULATION 1978-79 Appropriation Limit 12,223,946 CPI change 10.17% Vernon population change 1.15% 1.1017 X 1.0115=1.11437 X 1.11437 1979-80Appropriation Limit 13,621,999 C. 1980-81 APPROPRIATION LIMIT CALCULATION 1979-80Appropriation Limit 13,621,999 CPI change 12.11% Vernon population change-1.14% 1.1211 X.9886=1.1083 X 1.1083 1980-81 Appropriation Limit 15,097,261 D. 1981-82 APPROPRIATION LIMIT CALCULATION 1980-81 Appropriation Limit 15,097,261 Per Capita income change 9.12% Vernon population change 4.60% 1.0912 X 1.0460=1.1414 X 1.1414 1981-82 Appropriation Limit 17,232,014 E. 1982-83 APPROPRIATION LIMIT CALCULATION 1981-82 Appropriation Limit 17,232,014 Per Capital income change 6.79% Vernon population change-4.35% 1.0679 X.9565=1.02144635 X 1.02144635 1982-83 Appropriation Limit 17,601,578 F. 1983-84 APPROPRIATION LIMIT CALCULATION 1982-83 Appropriation Limit 17,601,578 Per Capita income change 2.35% Vernon population change 2.30% 1,0235 X 1.0230=1.0470 X 1.0470 1983-84 Appropriation Limit 18,428,852 G. 1984-85 APPROPRIATION LIMIT CALCULATION 1983-84 Appropriation Limit 18,428,852 Per Capita income change 4.74% Vernon population change-5.37% 1.0475 X.9463=.9912 X 0.9912 1984-85 Appropriation Limit 18,266,678 H. 1985-86 APPROPRIATION LIMIT CALCULATION 1984-85 Appropriation Limit 18,266,678 U.S.Consumer price index change 3.74% Vernon population change-3.46% 1.0374 X.9654=1.0017 X 1.0017 1985-86Appropriation Limit 18,297,731 EXHIBIT"A" A-2 CITY OF VERNON Page 3 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE I. 1986-87 APPROPRIATION LIMIT CALCULATION 1985-86 Appropriation Limit 18,297,731 U.S.Consumer price index change 2.30% Vernon population change 6.17% 1.0230 X 1.0617=1.0861 X 1.0861 1986-87 Appropriation Limit 19,873,166 J. 1987-88 APPROPRIATION LIMIT CALCULATION 1986-87 Appropriation Limit 19,873,166 U.S.Consumer price index change 3.04% Los Angeles County population change 1.91% 1.0304 X 1.0191=1.0501 X 1.0501 1987-88Appropriation Limit 20,868,812 K. 1988-89 APPROPRIATION LIMIT CALCULATION 1987-88 Appropriation Limit 20,868,812 U.S.Consumer price index change 3.93% Los Angeles County population change 1.62% 1.0393 X 1.0162=1.0562 X 1.0562 1988-89 Appropriation Limit 22,041,639 L. 1989-90 APPROPRIATION LIMIT CALCULATION 1988-89 Appropriation Limit 22,041,639 U.S.Consumer price index change 4.98% Los Angeles County population change 1.14% 1.0498 X 1.0114=1.0618 X 1.0618 1989-90Appropriation Limit 23,403,812 M. 1990-91 APPROPRIATION LIMIT CALCULATION 1989-90 Appropriation Limit 23,403,812 Per Capita income change 4.21% Los Angeles County population change 1.36% 1.0421 X 1.0136=1.0563 X 1.0563 1990-91 Appropriation Limit 24,721,447 N. 1991-92 APPROPRIATION LIMIT CALCULATION 1990-91 Appropriation Limit 24,721,447 Per Capita income change 4.14% Los Angeles County population change 1.73% 1.0414 X 1.0173=1.0595 X 1.0595 1991-92 Appropriation Limit 26,192,373 O. 1992-93 APPROPRIATION LIMIT CALCULATION 1991-92 Appropriation Limit 26,192,373 Increase in Nonresidential Construction 32.24% Los Angeles County population change 1.49% 1.3224 X 1.0149=1.3421 X 1.3421 1992-93 Appropriation Limit 35,152,784 EXHIBIT"A" A-3 CITY OF VERNON Page 4 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE P. 1993-94 APPROPRIATION LIMIT CALCULATION 1992-93 Appropriation Limit 35,152,784 Per Capita income change 2.72% Los Angeles County population change.96% 1.0272 X 1.0096=1.0371 X 1.0371 1993-94 Appropriation Limit 36,456,952 Q. 1994-95 APPROPRIATION LIMIT CALCULATION 1993-94Appropriation Limit 36,456,952 Increase in Nonresidential Construction 4.84% Los Angeles County population change.75% 1.0484 X 1.0075=1.05627 X 1.05627 1994-95 Appropriation Limit 38,508,385 R. 1995-96 APPROPRIATION LIMIT CALCULATION 1994-95 Appropriation Limit 38,508,385 Per Capita income change 4.72% Los Angeles County population change.33% 1.0472 X 1.0033=1.0507 X 1.0507 1995-96 Appropriation Limit 40,460,760 S. 1996-97 APPROPRIATION LIMIT CALCULATION 1995-96 Appropriation Limit 40,460,760 Per Capita income change 4.67% Los Angeles County population change.48% 1.0467 X 1.0048=1.0517 X 1.0517 1996-97 Appropriation Limit 42,552,581 T. 1997-98 APPROPRIATION LIMIT CALCULATION 1996-97 Appropriation Limit 42,552,581 Per Capita income change 4.67% Los Angeles County population change 1.24% 1.0467 X 1.0124=1.0597 X 1.0597 1997-98Appropriation Limit 45,092,970 U. 1998-99 APPROPRIATION LIMIT CALCULATION 1997-98 Appropriation Limit 45,092,970 Increase in Nonresidential Construction 9.91% Los Angeles County population change 1.39% 1.0991 X 1.0139=1.11 X 1.11 1998-99 Appropriation Limit 50,053,197 V. 1999-2000 APPROPRIATION LIMIT CALCULATION 1998-99 Appropriation Limit 50,053,197 Increase in Nonresidential Construction 15.35% Los Angeles County population change 1.78% 1.1535 X 1.0178=1.17 X 1.17 1999-2000 Appropriation Limit 58,562,240 EXHIBIT"A" A-4 CITY OF VERNON Page 5 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE W. 2000-2001 APPROPRIATION LIMIT CALCULATION 1999-2000 Appropriation Limit 58,562,240 Increase in Nonresidential Construction 10.24% Los Angeles County population change 1.75% 1.1024 X 1.0175=1.1217 X 1.1217 2000-2001 Appropriation Limit 65,689,265 X. 2001-2002 APPROPRIATION LIMIT CALCULATION 2000-2001 Appropriation Limit 65,689,265 Increase in Nonresidential Construction 25.96% Los Angeles County population change 1.66% 1.2596 X 1.0166=1.2805 X 1.2805 2001-2002 Appropriation Limit 84,115,104 Y. 2002-2003 APPROPRIATION LIMIT CALCULATION 2001-2002 Appropriation Limit 84,115,104 Increase in Nonresidential Construction 27.25% Los Angeles County population change 1.77% 1.2725 X 1.0177=1.2950 X 1.2950 2002-2003 Appropriation Limit 108,929,060 Z. 2003-2004 APPROPRIATION LIMIT CALCULATION 2002-2003 Appropriation Limit 108,929,060 Increase in Nonresidential Construction 19.80% Los Angeles County population change 1.66% 1.1980 X 1.0166=1.2179 X 1.2179 2003-2004 Appropriation Limit 132,664,702 AA. 2004-2005 APPROPRIATION LIMIT CALCULATION 2003-2004Appropriation Limit 132,664,702 Increase in Nonresidential Construction 22.03% Los Angeles County population change 1.38% 1.2203 X 1.0138=1.2371 X 1.2371 2004-2005 Appropriation Limit 164,119,503 BB. 2005-2006 APPROPRIATION LIMIT CALCULATION 2004-2005 Appropriation Limit 164,119,503 Per Capita Income change 5.26% Los Angeles County population change 1.18% 1.0526 X 1.0118=1.0650 X 1.0650 2005-2006 Appropriation Limit 174,787,271 CC. 2006-2007 APPROPRIATION LIMIT CALCULATION 2005-2006 Appropriation Limit 174,787,271 Increase in Nonresidential Construction 29.41% Los Angeles County population change.78% 1.2941 X 1.0078=1.3042 X 1.3042 2006-2007 Appropriation Limit 227,957,559 EXHIBIT"A" A-5 CITY OF VERNON Page 6 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE DD. 2007-2008APPROPRIATION LIMIT CALCULATION 2006-2007Appropriation Limit 227,957,559 Increase in Nonresidential Construction 9.44% Los Angeles County population change.72% 1.0944 X 1.0072=1.1023 X 1.1023 2007-2008 Appropriation Limit 251,277,617 EE. 2008-2009 APPROPRIATION LIMIT CALCULATION 2007-2008 Appropriation Limit 251,277,617 Increase in Nonresidential Construction 11.82% Los Angeles County population change.86% 1.1182 X 1.0086=1.1278 X 1.1278 2008-2009 Appropriation Limit 283,390,896 FF. 2009-2010 APPROPRIATION LIMIT CALCULATION 2008-2009Appropriation Limit 283,390,896 Increase in Nonresidential Construction 6.36% Los Angeles County population change.90% 1.0636 X 1.0090=1.0732 X 1.0732 2009-2010Appropriation Limit 304,135,110 GG. 2010-2011 APPROPRIATION LIMIT CALCULATION 2009-2010Appropriation Limit 304,135,110 Increase in Nonresidential Construction 21.45% Los Angeles County population change.83% 1.2145 X 1.0083=1.22458 X 1.22458 2010-2011 Appropriation Limit 372,437,773 HH. 2011-2012 APPROPRIATION LIMIT CALCULATION 2010-2011 Appropriation Limit 372,437,773 Increase in Nonresidential Construction 67.70% Los Angeles County population change.38% 1.6770 X 1.0038=1.683373 X 1.683373 2011-2012 Appropriation Limit 626,951,691 II. 2012-2013 APPROPRIATION LIMIT CALCULATION 2011-2012Appropriation Limit 626,951,691 Increase in Nonresidential Construction 62.40% Los Angeles County population change.38% 1.6240 X 1.0038=1.630171 X 1.630171 2012-2013 Appropriation Limit 1,022,038,465 JJ. 2013-2014 APPROPRIATION LIMIT CALCULATION 2012-2013 Appropriation Limit 1,022,038,465 Increase in Nonresidential Construction-6.51% Los Angeles County population change.69% 0.9349 X 1.0069=0.941351 X 0.941351 2013-2014Appropriation Limit 962,096,932 EXHIBIT"A" A-6 CITY OF VERNON Page 7 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE KK. 2014-2015 APPROPRIATION LIMIT CALCULATION 2013-2014Appropriation Limit 962,096,932 Per Capita Income change 2.00% Los Angeles County population change.78% 1.0200 X 1.0078=1.027956 X 1.027956 2014-2015 Appropriation Limit 988,993,313 LL. 2015-2016 APPROPRIATION LIMIT CALCULATION 2014-2015 Appropriation Limit 988,993,313 Per Capita Income change 3.50% Los Angeles County population change.82% 1.0350 X 1.0082=1.043487 X 1.043487 2015-2016 Appropriation Limit 1,032,001,666 EXHIBIT"A" A-7 Attachment 2 City of Vernon Fiscal Year 2015-2016 Alternative Adjustment Factors ALTERNATIVE ADJUSTMENT FACTORS Under Proposition 111,there are two options available for each of the major adjustment factors. The values of these factors for the purpose of calculating the Gann Limit are as follows: FY 2014 FY 2015 FY 2016 Price Factors: (A) Percent growth in State per Capita Personal Income: 4.1% 2.0% 3.5% (Source: California Department of Finance) Price Factor A 1.041 1.020 1.035 (B) Percent change in Assessed Valuation in new non-residential construction -6.51 -56.74 23.73 (Source: Los Angeles County Assessor's Office) Price Factor B 0.9349 0.4326 1.2373 Population Factors: (C) Percentage growth in County Population 0.69 0.78 0.82 (Source: California Department of Finance) Population Factor C 1.0069 1.0078 1.0082 (D) Percent growth in City Population 0.83 0.83 0.82 (Source: California Department of Finance) Population Factor D 1.0083 1.0083 1.0082 Annual Adjustment Factors: Based upon the actual data,the four alternative adjustment factors are as follows: A x C 1.048183 1.027956 1.043487 A x D 1.049640 1.028466 1.043487 B x C 0.941351 0.435974 1.247446 B x D 0.942660 0.436191 1.247446 U.S.Bureau of Economic Analysis(BEA) Page 1 of 2 Go Home National International Regional Industry Interactive Data Contact Us FAQs About BEA National Data Industry Data GDP & Personal Income Fixed Assets 1 1 GDP-by-industry Input-Output International Data Int'I Transactions, Services, & IIP Direct Investment & MNEs Regional Data GDP & Personal Income Regional Data Sign In Register Help GDP & Personal Income Table Table ID Area/Statistic Time Period Selected Data Selected Data Modify Chart Download Print Share SA1 Personal Income Summary: Personal Income, Population, Per Capita Personal Income Per capita personal income (Percent change from preceding period) 2/ State or DC GeoFips GeoName 2013- 2014 06000 California 3.5 Legend/Footnotes 2/ Per capita personal income is total personal income divided by total midyear population. Note-- All dollar estimates are in current dollars (not adjusted for inflation). Last updated: March 25, 2015-- new estimates for 2014. http://www.bea.gov/iTable/iTable.cfm?reqid=70&step=l&isuri=l&acrdn=4 5/13/2015 U.S.Bureau of Economic Analysis(BEA) Page 2 of 2 Contact Us U.S. Economic Accounts News Frequently Asked National U.S. Economy at a Glance Questions International Current Releases About BEA Regional News Release Archive Policies Industry Information For... Privacy Policy Media Accessibility Congressional Users Information Quality eFile Users Guidelines Job Seekers Data Dissemination Practices Open Data ESR System Publications Resources USA.gov Survey of Current Business Interactive Data COMMERCE.gov Papers by Topic Research at BEA BEA Customer Guide FAQs More Director's Page Conferences http://www.bea.gov/iTable/iTable.cfm?reqid=70&step=l&isuri=l&acrdn=4 5/13/2015 .. OFFICE OF THE ASSESSOR COUNTY OF LOS ANGF.'"S L010�ANGELES,CALiRAV41A=)12 77t4 r t.cx.�C1 Q1les JF•.k1'#t#iY C'K1':17t 1ra33&3$f-' 9 S. 4:�1a ��e4sjrts May 12, 2015 Masami Higa Assistant Finance Director City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Dear Masami Higa, Your agency, the City of Vernon, in order to effect an adjustment of its Gann Limit, has requested that the Assessor's Office supply the percentage change in total assessed valuation for the city over that of the preceding year, due to nonresidential new construction. For the City of Vernon, the 2014-2015 net change in nonresidential new construction, applicable to the 2015-2016 budget, is 23.73%0. If we can be of further service,please call Kimberly Jackson at (213) 893.-1169. Sincerely, Kimberly Jackson Appraiser Business Solutions Group Enclosures N Cs 0 • �C�pp tN7 pNj o W c9 Cl) ti u) (6 N 1r M tt 0o N Co h C] • Nl � r to ti M M r r r N r co • • CM M . M ;rye U) a ti M U LO N co W % vt U U) II Q W z , LL. M • O r O o to m 4 4* 0 0 0 W cy o U c F Q > O = _0 U O 0 W J ++ G p $ o o cm • is Q LO C L . O Z 0 M 40 CO p • er M ~ Q AL. • ttY p p ` U) i i. '- OW 3 O p a "- tt r: 0 0 U. Z U. �• ~ ^ 0 3 c O L o m II 3 o m 3 r3 3 o 3 3 r CD E r eo d m Z iD H 3 n co H H N > Z J m ' C to = ^ ` C C o f` .N 0> d � E H i � � LL � � • C 9- C m m • US a z a a f } } 4305'Sa0a Fe Avenue,Vernon{Cali#cirna.9Q058, Telephone(323)5$3-8811 May 5, 20T5 Tia;Nguyen Appraiser Specialist Statistical Support Los Angeles County Assessor 5.00.West.Temple Street Los Angeles,.Caiifornia 90012-2770 Dear Ms. Nguyen, The City of Vernon, in order to effect;an adjustment of its Gann Limit, request°that the Assessor's Office supply the percentage change in total.assessed valuation for the city over the preceding year, due to nonresidentia'new construction(2014-2015. net change applicable to the 2015 2Q16 budget). if yolul have any questions, please call Masami Higa'at(323)5$3-8811 Ext. 254. I Sincerely, Masami Hga Assistant Finance Hrector f: } F fus vefy lndusthaf �1AT o IL W III Q A � DEPARTMENT OF EDMUND O. BROWN JR. - GOVERNOR C�CIFORNIP F I N A N C E STATE CAPITOL R ROOM 1 1 45■SACRAMENTO CA R 958 1 4-49 98 IN WWW.00F.CA.00V OFFICE OF THE DIRECTOR May 2015 Dear Fiscal Officer: Subject: Price and Population Information Appropriations Limit The California Revenue and Taxation Code, section 2227, mandates the Department of Finance (Finance)to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2015, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2015-16. Attachment A provides the change in California's per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2015-16 appropriations limit. Attachment B provides city and unincorporated county population percentage change. Attachment C provides population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. Consult the Revenue and Taxation Code section 2228 for further information regarding the appropriations limit. Article XIII B, section 9(C), of the State Constitution exempts certain special districts from the appropriations limit calculation mandate. The Code and the California Constitution can be accessed at the following website: htt ://le info.) islature.ca. ov/faces/codes.xhtmi. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this issue should be referred to their respective county for clarification, or to their legal representation, or to the law itself. No state agency reviews the local appropriations limits. Population Certification The population certification program applies only to cities and counties. Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller's Office. Finance will certify the higher estimate to the State Controller by June 1, 2015. Please Note: Prior year's city population estimates may be revised. If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086. MICHAEL COHEN Director By: KEELY M. BOSLER Chief Deputy Director Attachment May 2015 Attachment A A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected,the percentage change to be used in setting the fiscal year 2015-16 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2015-16 3.82 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2015-16 appropriation limit. 2015-16: Per Capita Cost of Living Change = 3.82 percent Population Change= 0.93 percent Per Capita Cost of Living converted to a ratio: 3.82 + 100 = 1.0382 100 Population converted to a ratio: 0.93 + 100 = 1.0093 100 Calculation of factor for FY 2015-16: 1.0382 x 1.0093 = 1.0479 Fiscal Year 2015-16 Attachment B Annual Percent Change in Population Minus Exclusions* January 1,2014 to January 1,2015 and Total Population,January 1,2015 Total County Percent Chance -- Population Minus Exclusions --- Population City 2014-2015 1-1-14 1-1-15 1-1-2015 Los Angeles Agoura Hills 0.64 20,635 20,767 20,767 Alhambra 0.95 84,736 85,545 85,545 Arcadia 0.41 57,526 57,761 57,761 Artesia 0.41 16,695 16,763 16,849 Avalon 0.47 3,822 3,840 3,840 Azusa 2.11 48,405 49,425 49,425 Baldwin Park 0.39 76,749 77,047 77,047 Bell 0.41 35,987 36,135 36,135 Bellflower 0.42 77,777 78,106 78,106 Bell Gardens 0.45 42,685 42,875 42,875 Beverly Hills 0.40 34,693 34,833 34,833 Bradbury 0.46 1,082 1,087 1,087 Burbank 0.46 105,595 106,084 106,084 Calabasas 1.08 23,953 24,212 24,212 Carson 0.51 92,677 93,148 93,148 Cerritos 0.42 49,761 49,968 49,968 Claremont 0.97 35,932 36,282 36,282 Commerce 0.38 13,010 13,060 13,060 Compton 0.39 98,126 98,506 98,506 Covina 0.49 48,640 48,876 48,876 Cudahy 0.49 24,152 24,270 24,270 Culver City 0.44 39,597 39,773 39,773 Diamond Bar 0.43 56,426 56,668 56,668 Downey 0.43 113,417 113,900 113,900 Duarte 0.75 21,677 21,839 21,839 El Monte 0.57 115,118 115,774 115,774 El Segundo 0.57 16,903 17,000 17,000 Gardena 0.51 60,110 60,414 60,414 Glendale 1.67 195,903 199,182 199,182 Glendora 0.29 51,313 51,463 51,463 Hawaiian Gardens 0.57 14,462 14,545 14,545 Hawthorne 1.12 86,685 87,657 87,657 Hermosa Beach 0.07 19,758 19,772 19,772 Hidden Hills -0.05 1,902 1,901 1,901 Huntington Park 0.43 59,058 59,312 59,312 Industry 0.23 439 440 440 Inglewood 0.43 111,847 112,333 112,333 Irwindale 0.41 1,467 1,473 1,473 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions,state and federal correctional institutions and veteran homes. Fiscal Year 2015-16 Attachment B Annual Percent Change in Population Minus Exclusions* January 1,2014 to January 1,2015 and Total Population,January 1,2015 Total County Percent Chanae -- Population Minus Exclusions -- Population City 2014-2015 1-1-14 1-1-15 1-1-2015 La Canada Flintridge 0.23 20,544 20,592 20,592 La Habra Heights 0.31 5,422 5,439 5,439 Lakewood 0.42 81,261 81,601 81,601 La Mirada 0.66 49,198 49,521 49,521 Lancaster 0.65 155,090 156,099 160,784 La Puente 0.48 40,496 40,690 40,690 La Verne 2.48 32,241 33,042 33,042 Lawndale 0.48 33,242 33,403 33,403 Lomita 0.45 20,640 20,733 20,733 Long Beach 0.48 470,501 472,779 472,779 Los Angeles 1.09 3,911,307 3,953,775 3,957,022 Lynwood 0.52 71,012 71,381 71,381 Malibu 0.50 12,871 12,935 12,935 Manhattan Beach 0.36 35,633 35,763 35,763 Maywood 0.41 27,769 27,884 27,884 Monrovia 0.61 37,179 37,406 37,406 Montebello 0.86 63,555 64,104 64,104 Monterey Park 0.42 61,805 62,063 62,063 Norwalk 0.42 105,997 106,439 107,166 Palmdale 0.82 155,734 157,009 157,009 Palos Verdes Estates 0.44 13,670 13,730 13,730 Paramount 0.41 55,076 55,302 55,302 Pasadena 0.40 140,949 141,510 141,510 Pico Rivera 0.44 63,902 64,182 64,182 Pomona 0.49 151,683 152,419 152,419 Rancho Palos Verdes 0.44 42,360 42,547 42,564 Redondo Beach 0.51 67,749 68,095 68,095 Rolling Hills 0.42 1,896 1,904 1,904 Rolling Hills Estates 0.42 8,189 8,223 8,223 Rosemead 0.42 54,786 55,017 55,017 San Dimas 1.84 34,086 34,713 34,713 San Fernando 1.35 24,232 24,558 24,558 San Gabriel 0.46 40,332 40,517 40,517 San Marino 0.50 13,347 13,414 13,414 Santa Clarita 1.91 209,231 213,231 213,231 Santa Fe Springs 1.57 17,311 17,582 17,627 Santa Monica 1.14 92,229 93,283 93,283 Sierra Madre 0.32 11,098 11,133 11,133 Signal Hill 1.49 11,415 11,585 11,585 South El Monte 1.99 20,435 20,841 20,841 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions,state and federal correctional institutions and veteran homes. Fiscal Year 2015-16 Attachment B Annual Percent Change in Population Minus Exclusions* January 1,2014 to January 1,2015 and Total Population,January 1,2015 Total County Percent Change --- Population Minus Exclusions -- Population City 2014-2015 1-1-14 1-1-15 1-1-2015 South Gate 0.46 96,101 96,547 96,547 South Pasadena 0.58 26,022 26,174 26,174 Temple City 0.34 36,152 36,275 36,275 Torrance 0.44 147,782 148,427 148,427 Vernon 0.82 122 123 123 Walnut 0.44 30,124 30,257 30,257 West Covina 0.48 107,879 108,401 108,401 West Hollywood 2.09 35,090 35,825 35,825 Westlake Village 0.41 8,389 8,423 8,423 Whittier 0.43 86,577 86,948 86,948 Unincorporated 0.45 1,046,288 1,050,987 1,051,872 County Total 0.82 10,044,719 10,126,867 10,136,559 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions,state and federal correctional institutions and veteran homes. RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ADOPTING AN APPROPRIATION LIMIT FOR THE 2015-2016 FISCAL YEAR, PURSUANT TO GOVERNMENT CODE SECTION 7910 WHEREAS, Section 7910, of the Government Code requires the governing body of each local jurisdiction to establish, by resolution, an appropriation limit for each fiscal year; and WHEREAS, the appropriation limit for fiscal year 2014-2015, was $988 , 993, 313 ; and WHEREAS, the voters of the State of California passed Proposition 111 on June 5, 1990 ; and WHEREAS, under Proposition 111, a City is allowed to use either, (a) the change in California per capita income from the preceding year, or (b) the percentage change in the local assessment roll from the preceding year due to increases in nonresidential construction; and WHEREAS, the documentation used in the determination of the appropriation limit provided for herein has been made available for inspection by the public fifteen (15) , days prior to this meeting; and WHEREAS, the City Council of the City of Vernon hereby intends to establish the appropriation limit for fiscal year 2015-2016 . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have an effect on the environment . SECTION 3 : The City Council of the City of Vernon hereby establishes $1, 032, 001, 666 as the amount of the appropriation limit for fiscal year 2015-2016, in accordance with the provisions of Proposition 111 . The computation is attached hereto as Exhibit A, which is incorporated herein by this reference. SECTION 4 : The City Council of the City of Vernon has approved a budget by adopting a Resolution, which did not exceed the appropriation limit for fiscal year 2015-2016 . SECTION 5 : The City Council of the City of Vernon hereby declares that the budget established by Resolution complies with the requirements of Government Code, Sections 7900, et seq. 2 - SECTION 6 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name: Title : Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: IA�, � Hema Patel, Ci Attorney 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) 4 - EXHIBIT A CITY OF VERNON Page 1 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE A. CALCULATION OF BASE YEAR 1978-79 STEP 1. 1. Proceeds from Taxes Property taxes 1,061,619 Othertaxes 4,890,969 Investment earnings 302,913 Revenue for Other-Agencies 831,739 Less: Railroad Crossing Grant 9,277 822,462 SUB-TOTAL 7,077,963 Contribution from Enterprise Fund 1,549,490 Miscellaneous 5,306 TOTAL PROCEEDS FROM TAXES 8,632,759 2. Non-Proceeds from Taxes A. User Fees by Function Public Works Construction Permits 121,551 Streets&Curbs 1,604 Engineering Services 82,706 SUB-TOTAL 205,861 Health Food Vehicle Permits 15,516 Public Health Permits 47,578 SUB-TOTAL 63,094 Police Police Services 5,944 SUB-TOTAL 5,944 TOTAL USER FEES 274,899 B. Interfund Service Charges 0 C. Cost-Reimbursement Items 0 D. Donations and Grants(non-State)Railroad Crossing Grant 9,277 E. Exempt Revenues-(Mandated Cost Reimbursement,Fines, Proceeds from Bond Issues)Fines,Forfeits,and Penalties 67,303 TOTAL NON PROCEEDS FROM TAXES 351,479 GRAND TOTAL 8,984,238 STEP 2. 1. Match Cost to User Fees 2. Revenues less than Costs 3. No portion of User Fees considered"Proceeds of Taxes" STEP 3. 1. All Revenues of the City 8,984,238 2. Non Proceed of Taxes (351,479) 3. User Fees in excess of Costs 0 4. Less Debt Service Appropriations 0 TOTAL 8,632,759 STEP 4. 1. Total all actual Appropriations,as amended for 1978-79 8,586,750 Transfers to Reserves 3,988,675 12,575,425 2. Subtract Non Proceeds of Taxes (351,479) BASE YEAR LIMIT(1978-79) 12,223,946 EXHIBIT"A" A-1 CITY OF VERNON Page 2 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE B. 1979-80 APPROPRIATION LIMIT CALCULATION 1978-79Appropriation Limit 12,223,946 CPI change 10.17% Vernon population change 1.15% 1.1017 X 1.0115=1.11437 X 1.11437 1979-80Appropriation Limit 13,621,999 C. 1980-81 APPROPRIATION LIMIT CALCULATION 1979-80 Appropriation Limit 13,621,999 CPI change 12.11% Vernon population change-1.14% 1.1211 X.9886=1.1083 X 1.1083 1980-81 Appropriation Limit 15,097,261 D. 1981-82 APPROPRIATION LIMIT CALCULATION 1980-81 Appropriation Limit 15,097,261 Per Capita income change 9.12% Vernon population change 4.60% 1.0912 X 1.0460=1.1414 X 1.1414 1981-82 Appropriation Limit 17,232,014 E. 1982-83 APPROPRIATION LIMIT CALCULATION 1981-82 Appropriation Limit 17,232,014 Per Capital income change 6.79% Vernon population change-4.35% 1.0679 X.9565=1.02144635 X 1.02144635 1982-83 Appropriation Limit 17,601,578 F. 1983-84 APPROPRIATION LIMIT CALCULATION 1982-83 Appropriation Limit 17,601,578 Per Capita income change 2.35% Vernon population change 2.30% 1.0235 X 1.0230=1.0470 X 1.0470 1983-84Appropriation Limit 18,428,852 G. 1984-85 APPROPRIATION LIMIT CALCULATION 1983-84 Appropriation Limit 18,428,852 Per Capita income change 4.74% Vernon population change-5.37% 1.0475 X.9463=.9912 X 0.9912 1984-85 Appropriation Limit 18,266,678 H. 1985-86 APPROPRIATION LIMIT CALCULATION 1984-85 Appropriation Limit 18,266,678 U.S.Consumer price index change 3.74% Vernon population change-3.46% 1.0374 X.9654=1.0017 X 1.0017 1985-86 Appropriation Limit 18,297,731 EXHIBIT"A" A-2 I CITY OF VERNON Page 3 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE I. 1986-87 APPROPRIATION LIMIT CALCULATION 1985-86 Appropriation Limit 18,297,731 U.S.Consumer price index change 2.30% Vernon population change 6.17% 1.0230 X 1.0617=1.0861 X 1.0861 1986-87 Appropriation Limit 19,873,166 J. 1987-88 APPROPRIATION LIMIT CALCULATION 1986-87 Appropriation Limit 19,873,166 U.S.Consumer price index change 3.04% Los Angeles County population change 1.91% 1.0304 X 1.0191=1.0501 X 1.0501 1987-88 Appropriation Limit 20,868,812 K. 1988-89 APPROPRIATION LIMIT CALCULATION 1987-88Appropriation Limit 20,868,812 U.S.Consumer price index change 3.93% Los Angeles County population change 1.62% 1.0393 X 1.0162=1.0562 X 1.0562 1988-89 Appropriation Limit 22,041,639 L. 1989-90 APPROPRIATION LIMIT CALCULATION 1988-89 Appropriation Limit 22,041,639 U.S.Consumer price index change 4.98% Los Angeles County population change 1.14% 1.0498 X 1.0114=1.0618 X 1.0618 1989-90Appropriation Limit 23,403,812 M. 1990-91 APPROPRIATION LIMIT CALCULATION 1989-90 Appropriation Limit 23,403,812 Per Capita income change 4.21% Los Angeles County population change 1.36% 1.0421 X 1.0136=1.0563 X 1.0563 1990-91 Appropriation Limit 24,721,447 N. 1991-92 APPROPRIATION LIMIT CALCULATION 1990-91 Appropriation Limit 24,721,447 Per Capita income change 4.14% Los Angeles County population change 1.73% 1.0414 X 1.0173=1.0595 X 1.0595 1991-92 Appropriation Limit 26,192,373 O. 1992-93 APPROPRIATION LIMIT CALCULATION 1991-92 Appropriation Limit 26,192,373 Increase in Nonresidential Construction 32.24% Los Angeles County population change 1.49% 1.3224 X 1.0149=1.3421 X 1.3421 1992-93 Appropriation Limit 35,152,784 EXHIBIT"A" A-3 CITY OF VERNON Page 4 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE P. 1993-94 APPROPRIATION LIMIT CALCULATION 1992-93 Appropriation Limit 35,152,784 Per Capita income change 2.72% Los Angeles County population change.96% 1.0272 X 1.0096=1.0371 X 1.0371 1993-94 Appropriation Limit 36,456,952 Q. 1994-95 APPROPRIATION LIMIT CALCULATION 1993-94 Appropriation Limit 36,456,952 Increase in Nonresidential Construction 4.84% Los Angeles County population change.75% 1.0484 X 1.0075=1.05627 X 1.05627 1994-95 Appropriation Limit 38,508,385 R. 1995-96 APPROPRIATION LIMIT CALCULATION 1994-95 Appropriation Limit 38,508,385 Per Capita income change 4.72% Los Angeles County population change.33% 1.0472 X 1.0033=1.0507 X 1.0507 1995-96Appropriation Limit 40,460,760 S. 1996-97 APPROPRIATION LIMIT CALCULATION 1995-96 Appropriation Limit 40,460,760 Per Capita income change 4.67% Los Angeles County popufation change.48% 1.0467 X 1.0048=1.0517 X 1.0517 1996-97 Appropriation Limit 42,552,581 T. 1997-98 APPROPRIATION LIMIT CALCULATION 1996-97 Appropriation Limit 42,552,581 Per Capita income change 4.67% Los Angeles County population change 1.24% 1.0467 X 1.0124=1.0597 X 1.0597 1997-98 Appropriation Limit 45,092,970 U. 1998-99 APPROPRIATION LIMIT CALCULATION 1997-98 Appropriation Limit 45,092,970 Increase in Nonresidential Construction 9.91% Los Angeles County population change 1.39% 1.0991 X 1.0139=1.11 X 1.11 1998-99 Appropriation Limit 50,053,197 V. 1999-2000 APPROPRIATION LIMIT CALCULATION 1998-99 Appropriation Limit 50,053,197 Increase in Nonresidential Construction 15.35% Los Angeles County population change 1.78% 1.1535 X 1.0178=1.17 X 1.17 1999-2000Appropriation Limit 58,562,240 EXHIBIT"A" A-4 CITY OF VERNON Page 5 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE W. 2000-2001 APPROPRIATION LIMIT CALCULATION 1999-2000 Appropriation Limit 58,562,240 Increase in Nonresidential Construction 10.24% Los Angeles County population change 1.75% 1.1024 X 1.0175=1.1217 X 1.1217 2000-2001 Appropriation Limit 65,689,265 X. 2001-2002 APPROPRIATION LIMIT CALCULATION 2000-2001 Appropriation Limit 65,689,265 Increase in Nonresidential Construction 25.96% Los Angeles County population change 1.66% 1.2596 X 1.0166=1.2805 X 1.2805 2001-2002 Appropriation Limit 84,115,104 Y. 2002-2003 APPROPRIATION LIMIT CALCULATION 2001-2002 Appropriation Limit 84,115,104 Increase in Nonresidential Construction 27.25% Los Angeles County population change 1.77% 1.2725 X 1.0177=1.2950 X 1.2950 2002-2003 Appropriation Limit 108,929,060 Z. 2003-2004 APPROPRIATION LIMIT CALCULATION 2002-2003Appropriation Limit 108,929,060 Increase in Nonresidential Construction 19.80% Los Angeles County population change 1.66% 1.1980 X 1.0166=1.2179 X 1.2179 2003-2004Appropriation Limit 132,664,702 AA. 2004-2005 APPROPRIATION LIMIT CALCULATION 2003-2004Appropriation Limit 132,664,702 Increase in Nonresidential Construction 22.03% Los Angeles County population change 1.38% 1.2203 X 1.0138=1.2371 X 1.2371 2004-2005 Appropriation Limit 164,119,503 BB. 2005-2006 APPROPRIATION LIMIT CALCULATION 2004-2005 Appropriation Limit 164,119,503 Per Capita Income change 5.26% Los Angeles County population change 1.18% 1.0526 X 1.0118=1.0650 X 1.0650 2005-2006 Appropriation Limit 174,787,271 CC. 2006-2007 APPROPRIATION LIMIT CALCULATION 2005-2006Appropriation Limit 174,787,271 Increase in Nonresidential Construction 29.41% Los Angeles County population change.78% 1.2941 X 1.0078=1.3042 X 1.3042 2006-2007 Appropriation Limit 227,957,559 EXHIBIT"A" A-5 CITY OF VERNON Page 6 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE DD. 2007-2008 APPROPRIATION LIMIT CALCULATION 2006-2007 Appropriation Limit 227,957,559 Increase in Nonresidential Construction 9.44% Los Angeles County population change.72% 1.0944 X 1.0072=1.1023 X 1.1023 2007-2008Appropriation Limit 251,277,617 EE. 2008-2009 APPROPRIATION LIMIT CALCULATION 2007-2008 Appropriation Limit 251,277,617 Increase in Nonresidential Construction 11.82% Los Angeles County population change.86% 1.1182 X 1.0086=1.1278 X 1.1278 2008-2009 Appropriation Limit 283,390,896 FF. 2009-2010 APPROPRIATION LIMIT CALCULATION 2008-2009 Appropriation Limit 283,390,896 Increase in Nonresidential Construction 6.36% Los Angeles County population change.90% 1.0636 X 1.0090=1.0732 X 1.0732 2009-2010Appropriation Limit 304,135,110 GG. 2010-2011 APPROPRIATION LIMIT CALCULATION 2009-2010 Appropriation Limit 304,135,110 Increase in Nonresidential Construction 21.45% Los Angeles County population change.83% 1.2145 X 1.0083=1.22458 X 1.22458 2010-2011 Appropriation Limit 372,437,773 HH. 2011-2012 APPROPRIATION LIMIT CALCULATION 2010-2011 Appropriation Limit 372,437,773 Increase in Nonresidential Construction 67.70% Los Angeles County population change.38% 1.6770 X 1.0038=1.683373 X 1.683373 2011-2012 Appropriation Limit 626,951,691 II. 2012-2013 APPROPRIATION LIMIT CALCULATION 2011-2012 Appropriation Limit 626,951,691 Increase in Nonresidential Construction 62.40% Los Angeles County population change.38% 1.6240 X 1.0038=1.630171 X 1.630171 2012-2013 Appropriation Limit 1,022,038,465 JJ. 2013-2014 APPROPRIATION LIMIT CALCULATION 2012-2013 Appropriation Limit 1,022,038,465 Increase in Nonresidential Construction-6.51% Los Angeles County population change.69% 0.9349 X 1.0069=0.941351 X 0.941351 2013-2014 Appropriation Limit 962,096,932 EXHIBIT"A" A-6 CITY OF VERNON Page 7 of 7 APPROPRIATION LIMIT UNDER PROPOSITION 4 AND SECTION 7901 OF THE GOVERNMENT CODE KK. 2014-2015 APPROPRIATION LIMIT CALCULATION 2013-2014 Appropriation Limit 962,096,932 Per Capita Income change 2.00% Los Angeles County population change.78% 1.0200 X 1.0078=1.027956 X 1.027956 2014-2015 Appropriation Limit 988,993,313 LL. 2015-2016 APPROPRIATION LIMIT CALCULATION 2014-2015 Appropriation Limit 988,993,313 Per Capita Income change 3.50% Los Angeles County population change.82% 1.0350 X 1.0082=1.043487 X 1.043487 2015-2016Appropriation Limit 1,032,001,666 EXHIBIT"A" A-7 Attachment 2 City of Vernon Fiscal Year 2015-2016 Alternative Adjustment Factors ALTERNATIVE ADJUSTMENT FACTORS Under Proposition 111,there are two options available for each of the major adjustment factors. The values of these factors for the purpose of calculating the Gann Limit are as follows: FY 2014 FY 2015 FY 2016 Price Factors: (A) Percent growth in State per Capita Personal Income: 4.1% 2.0% 3.5% (Source: California Department of Finance) Price Factor A 1.041 1.020 1.035 (B) Percent change in Assessed Valuation in new non-residential construction -6.51 -56.74 23.73 (Source: Los Angeles County Assessor's Office) Price Factor B 0.9349 0.4326 1.2373 Population Factors: (C) Percentage growth in County Population 0.69 0.78 0.82 (Source: California Department of Finance) Population Factor C 1.0069 1.0078 1.0082 (D) Percent growth in City Population 0.83 0.83 0.82 (Source: California Department of Finance) Population Factor D 1.0083 1.0083 1.0082 Annual Adjustment Factors: Based upon the actual data,the four alternative adjustment factors are as follows: A x C 1.048183 1.027956 1.043487 A x D 1.049640 1.028466 1.043487 B x C 0.941351 0.435974 1.247446 B x D 0.942660 0.436191 1.247446 U.S. Bureau of Economic Analysis(BEA) Page 1 of 2 Go Home National International Regional Industry Interactive Data Contact Us FAQs About BEA National Data Industry Data GDP & Personal Income Fixed Assets GDP-by-industry Input-Output International Data Int'I Transactions, Services, & IIP Direct Investment & MNEs Regional Data GDP & Personal Income Regional Data Sign In Register Help GDP & Personal Income Table Table ID Area/Statistic Time Period Selected Data Selected Data Modify Chart Download Print Share SA1 Personal Income Summary: Personal Income, Population, Per Capita Personal Income Per capita personal income (Percent change from preceding period) 2/ State or DC GeoFips GeoName 2013- 2014 06000 California 3.5 Legend/Footnotes 2/ Per capita personal income is total personal income divided by total midyear population. Note-- All dollar estimates are in current dollars (not adjusted for inflation). Last updated: March 25, 2015-- new estimates for 2014. I http://www.bea.gov/iTable/iTable.cfm?reqid=70&step=l&isuri=l&acrdn=4 5/13/2015 U.S.Bureau of Economic Analysis(BEA) Page 2 of 2 Contact Us U.S. Economic Accounts News Frequently Asked National U.S. Economy at a Glance Questions International Current Releases About BEA Regional News Release Archive Policies Industry Information For... Privacy Policy Media Accessibility Congressional Users Information Quality eFile Users Guidelines Job Seekers Data Dissemination Practices Open Data ESR System Publications Resources USA.gov Survey of Current Business Interactive Data COMMERCE.gov Papers by Topic Research at BEA BEA Customer Guide FAQs More Director's Page Conferences I http://www.bea.gov/iTable/iTable.cfm?regid=70&step=l&isuri=l&acrdn=4 5/13/2015 Y. siYOWFEST T,-M t-WPIFT �c;ate s LOS r'dGe`LES CALtF1,; +t3ZA400r,-z':76 tyy!VV Jt t'VR .Y PIUAVt =4 i3)4 7-.:11: 4'aluittg People -Ls,,tvr)r 4n"t n >fkrty May 12, 2015 Masami Higa Assistant Finance Director City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Dear Masami Higa, Your agency, the City of Vernon,in order to effect an adjustment of its Gann Limit, has requested that the Assessor's Office supply the percentage change in total assessed valuation for the city over that of the preceding year, due to nonresidential new construction. For the City of Vernon, the 2014-2015 net change in nonresidential new construction,applicable to the 2015-2016 budget, is 23.73%0. If we can be of further service;please call Kimberly Jackson at (213) 893-1169. Sincerely, Kimberly Jackson Appraiser Business Solutions Group Enclosures ' N vs a p bNri p p bh o N U (d p cc • m to bpi! 0) p � ti M O 4C9 co ' co N c ti O bit OD r Ofth r (a 40 b9 • co O N CIO CO O to ((a p49 pfn M coo N La t7f N ' U) N T- N opb W m bi) U) + II 'Q W LL N M • O •� 01 r O O (a 6s � pEF} p(i} o b W ep '� r� co o c C) V-r I r 0 lL Q 40 bi} X > U- o O r o _' U) v W O C J = 0 C� /�� O O 2C O i,(. L • ot Q � • to `M tf? bi? Lbj G� • C C L U) a L O .b �. 3 J a L b_ y O L o a ` p b E X 1` r- O O G IL Z IL z r.. O h ^ d U O O C N Z �• � i V m m = v a n 0 cc uO • a ci a c'� o m 0 o N ' z wl a a bn ti coV 0H bV N ? Z J m C to U L 3 E i •� bU 91 bCh U. #C V • C C C • N LL li C O L C Q1 GiJ L L • C.) 6 z z 0 aL z a a a 4305.Santa Fe Avenue,Vernon;C Q00 alifornia 5$ Telephone(323)583-881I May 5, 2015 TO Nguyen Appraiser Specialist Statistical Support Los Angeles County Assessor 500 West Temple Stree# Los-Angeles,,California 90012-2770 Dear Ms. Nguyen, The City of Vernon, in order to effect an adjustment.of its':Gann;Limit, request than the Assessor's Office supply the percentage change in totaCassessed valuation for the city over the preceding year, due to nonresidential new construction 01.4-2015 net change applicable to the 2015-2016 budget). If you have any questions, please call Masami Higa at(323) 583-8811 Ext. 254, Sincerely, Masami Higa , Assistant Finance Director Eyocfusivef Industrial z e,1vT 4W LLa Z w illl n O � DEPARTMENT OF EDMUND G. BROWN JR. - GOVERNOR C,C1FpRN`PF 1 N A N C E STATE CAPITOL 8 ROOM 1 145■SACRAMENTO CA■9 58 1 4-49 98 0 WWW.00F.CA.00V OFFICE OF THE DIRECTOR May 2015 Dear Fiscal Officer: Subject: Price and Population Information Appropriations Limit The California Revenue and Taxation Code, section 2227, mandates the Department of Finance (Finance) to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2015, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2015-16. Attachment A provides the change in California's per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2015-16 appropriations limit. Attachment B provides city and unincorporated county population percentage change. Attachment C provides population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. Consult the Revenue and Taxation Code section 2228 for further information regarding the appropriations limit. Article XIII B, section 9(C), of the State Constitution exempts certain special districts from the appropriations limit calculation mandate. The Code and the California Constitution can be accessed at the following website: htt .//I ininfo legislature.ca. ov/faces/codes.xhtml. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this issue should be referred to their respective county for clarification, or to their legal representation, or to the law itself. No state agency reviews the local appropriations limits. Population Certification The population certification program applies only to cities and counties. Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller's Office. Finance will certify the higher estimate to the State Controller by June 1, 2015. Please Note: Prior year's city population estimates may be revised. If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086. MICHAEL COHEN Director By: KEELY M. BOSLER Chief Deputy Director Attachment May 2015 Attachment A A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected,the percentage change to be used in setting the fiscal year 2015-16 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2015-16 3.82 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2015-16 appropriation limit. 2015-16: Per Capita Cost of Living Change = 3.82 percent Population Change = 0.93 percent Per Capita Cost of Living converted to a ratio: 3.82 + 100 = 1.0382 100 Population converted to a ratio: 0.93 + 100 = 1.0093 100 Calculation of factor for FY 2015-16: 1.0382 x 1.0093 = 1.0479 Fiscal Year 2015-16 Attachment B Annual Percent Change in Population Minus Exclusions" January 1,2014 to January 1,2015 and Total Population,January 1,2015 Total County Percent Chanae -- Population Minus Exclusions --- Population City 2014-2015 1-1-14 1-1-15 1.1-2015 Los Angeles Agoura Hills 0.64 20,635 20,767 20,767 Alhambra 0.95 84,736 85,545 85,545 Arcadia 0.41 57,526 57,761 57,761 Artesia 0.41 16,695 16,763 16,849 Avalon 0.47 3,822 3,840 3,840 Azusa 2.11 48,405 49,425 49,425 Baldwin Park 0.39 76,749 77,047 77,047 Bell 0.41 35,987 36,135 36,135 Bellflower 0.42 77,777 78,106 78,106 Bell Gardens 0.45 42,685 42,875 42,875 Beverly Hills 0.40 34,693 34,833 34,833 Bradbury 0.46 1,082 1,087 1,087 Burbank 0.46 105,595 106,084 106,084 Calabasas 1.08 23,953 24,212 24,212 Carson 0.51 92,677 93,148 93,148 Cerritos 0.42 49,761 49,968 49,968 Claremont 0.97 35,932 36,282 36,282 Commerce 0.38 13,010 13,060 13,060 Compton 0.39 98,126 98,506 98,506 Covina 0.49 48,640 48,876 48,876 Cudahy 0.49 24,152 24,270 24,270 Culver City 0.44 39,597 39,773 39,773 Diamond Bar 0.43 56,426 56,668 56,668 Downey 0.43 113,417 113,900 113,900 Duarte 0.75 21,677 21,839 21,839 El Monte 0.57 115,118 115,774 115,774 El Segundo 0.57 16,903 17,000 17,000 Gardena 0.51 60,110 60,414 60,414 Glendale 1.67 195,903 199,182 199,182 Glendora 0.29 51,313 51,463 51,463 Hawaiian Gardens 0.57 14,462 14,545 14,545 Hawthorne 1.12 86,685 87,657 87,657 Hermosa Beach 0.07 19,758 19,772 19,772 Hidden Hills -0.05 1,902 1,901 1,901 Huntington Park 0.43 59,058 59,312 59,312 Industry 0.23 439 440 440 Inglewood 0.43 111,847 112,333 112,333 Irwindale 0.41 1,467 1,473 1,473 'Exclusions include residents on federal military installations and group quarters residents in state mental institutions,state and federal correctional institutions and veteran homes. Fiscal Year 2015-16 Attachment B Annual Percent Change in Population Minus Exclusions* January 1,2014 to January 1,2015 and Total Population,January 1,2015 Total County Percent Change --- Population Minus Exclusions -- Pooulation City 2014-2015 1-1-14 1-1-15 1-1-2015 La Canada Flintridge 0.23 20,544 20,592 20,592 La Habra Heights 0.31 5,422 5,439 5,439 Lakewood 0.42 81,261 81,601 81,601 La Mirada 0.66 49,198 49,521 49,521 Lancaster 0.65 155,090 156,099 160,784 La Puente 0.48 40,496 40,690 40,690 La Verne 2.48 32,241 33,042 33,042 Lawndale 0.48 33,242 33,403 33,403 Lomita 0.45 20,640 20,733 20,733 Long Beach 0.48 470,501 472,779 472,779 Los Angeles 1.09 3,911,307 3,953,775 3,957,022 Lynwood 0.52 71,012 71,381 71,381 Malibu 0.50 12,871 12,935 12,935 Manhattan Beach 0.36 35,633 35,763 35,763 Maywood 0.41 27,769 27,884 27,884 Monrovia 0.61 37,179 37,406 37,406 Montebello 0.86 63,555 64,104 64,104 Monterey Park 0.42 61,805 62,063 62,063 Norwalk 0.42 105,997 106,439 107,166 Palmdale 0.82 155,734 157,009 157,009 Palos Verdes Estates 0.44 13,670 13,730 13,730 Paramount 0.41 55,076 55,302 55,302 Pasadena 0.40 140,949 141,510 141,510 Pico Rivera 0.44 63,902 64,182 64,182 Pomona 0.49 151,683 152,419 152,419 Rancho Palos Verdes 0.44 42,360 42,547 42,564 Redondo Beach 0.51 67,749 68,095 68,095 Rolling Hills 0.42 1,896 1,904 1,904 Rolling Hills Estates 0.42 8,189 8,223 8,223 Rosemead 0.42 54,786 55,017 55,017 San Dimas 1.84 34,086 34,713 34,713 San Fernando 1.35 24,232 24,558 24,558 San Gabriel 0.46 40,332 40,517 40,517 San Marino 0.50 13,347 13,414 13,414 Santa Clarita 1.91 209,231 213,231 213,231 Santa Fe Springs 1.57 17,311 17,582 17,627 Santa Monica 1.14 92,229 93,283 93,283 Sierra Madre 0.32 11,098 11,133 11,133 Signal Hill 1.49 11,415 11,585 11,585 South El Monte 1.99 20,435 20,841 20,841 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions,state and federal correctional institutions and veteran homes. Fiscal Year 2015-16 Attachment B Annual Percent Change in Population Minus Exclusions* January 1,2014 to January 1,2015 and Total Population,January 1,2015 Total County Percent Chance -- Population Minus Exclusions --- Population City 2014-2015 1-1-14 1-1-15 1-1-2015 South Gate 0.46 96,101 96,547 96,547 South Pasadena 0.58 26,022 26,174 26,174 Temple City 0.34 36,152 36,275 36,275 Torrance 0.44 147,782 148,427 148,427 Vernon 0.82 122 123 123 Walnut 0.44 30,124 30,257 30,257 West Covina 0.48 107,879 108,401 108,401 West Hollywood 2.09 35,090 35,825 35,825 Westlake Village 0.41 8,389 8,423 8,423 Whittier 0.43 86,577 86,948 86,948 Unincorporated 0.45 1,046,288 1,050,987 1,051,872 County Total 0.82 10,044,719 10,126,867 10,136,559 I I *Exclusions include residents on federal military installations and group quarters residents in state mental institutions,state and federal correctional institutions and veteran homes. tt�pF �'FRA_ •� G�'Y FogM "►' 4305 Santa Fe Avenue City of Vernon - Vernon,CA 90058 (323)583-8811 a S,V'LY ITAII NOTICE OF PUBLIC HEARING The City Council of the City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall, City Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 DATE & Tuesday,June 16,2015 at 9:00 a.m. TIME: (or as soon thereafter as the matter can be heard) APPLICANT: Alcoa Bel Air,LLC REQUEST: Alcoa Bel Air,LLC is requesting on behalf of its tenant Bon Appetit Danish,Inc. (Bon Appetit) a variance from Table 26.5.1-6(d)of the City's Zoning Ordinance, minimum truck parking requirement.Alcoa Bel Air,LLC is proposing to construct a state of the art new manufacturing building.The development proposal would bring the property into conformity with the automobile parking, truck parking, truck loading, and maneuvering requirements of the current City of Vernon Comprehensive Zoning Ordinance.Bon Appetit's manufacturing operation proposed requires three(3) outdoor silos for the storage of flour. The proposed site will not allow a building big enough to accommodate all their required manufacturing line and the three(3)storage silos without infringing into one of the required truck parking stalls.Therefore,Bon Appetit is asking for a variance from the truck parking requirement for a temporary reduction from the two(2)required truck parking positions down to one(1)truck parking space to accommodate the silo placements. PROPERTY 4700 Alcoa Avenue,Vernon,CA 90058 INVOLVED: REVIEW OF: The application,maps,and supporting information are available for THE FILE: public review during normal business hours in the Vernon Public Works,Water& Development Services Department, located at 4305 Santa Fe Avenue,Vernon,CA 90058,between the hours of 7:15 a.m. and 5:15 p.m.Monday through Thursday. PROPOSED Staff plans to recommend that the Vernon City Council determine that CEQA the proposal will not have a significant effect on the environment and is FINDING: exempt from the California Environmental Quality Act(CEQA). The conditions imposed on the variance are designed to protect the environment,public health, safety and general welfare. If you challenge the granting of the variance or any provisions thereof in court,you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at,or prior to, the meeting.The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. 4Dated: w Ma r a Ayala,City C sFFR E C E I V E D • JUN 0 9 2015 e XLY 114v- 3UN 1 0 2015 CITY ADMINISTRATION ITYCLERK'S(l�FICE STAFF REPORT PUBLIC WORKS, WATER & DEVELOPMENT SERVICE DEPARTMENT DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson, irector of Public Works, Water and Development Services Department Originator: Sergio Canales,Assistant Planner RE: Approval of a Variance Application for Alcoa Bel Air, LLC located at 4700 Alcoa Avenue RECOMMENDATION A. Find that approval of the variance proposed in this staff report is categorically exempt under the California Environmental Quality Act(CEQA) in accordance with Class 32, Section 15332, "In-Fill Development Projects,"because: (i)the Project is consistent with the City's General Plan and zoning regulations, (ii)the proposed development occurs within City limits on a project site of no more than five acres substantially surrounded by urban uses, (iii) the Project site has no value, as habitat for any endangered, rare or threatened species, (iv) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and(v)the site can be adequately served by all required utilities and public services; and B. Adopt a resolution approving a variance from Section 26.5.1-6(d) of the Comprehensive Zoning Ordinance, minimum truck parking requirement, subject to the recommended conditions of approval,to Alcoa Bel Air, LLC, for the property located at 4700 Alcoa Avenue. BACKGROUND Bon Appetit Danish, Inc. ("Bon Appetit")has been operating in the City of Vernon since 1992. They are proposing to lease a building from Alcoa Bel Air, LLC (the"Applicant") located at 4700 Alcoa Avenue. Bon Appetit is a wholesale bakery manufacturer, specializing in gourmet baking and distribution of top quality Danishes, cakes, muffins and other baked goods in the City of Vernon. They currently have three manufacturing plants in the City and continue to grow. Their business is expanding and a new facility is needed to keep up with demand. Instead of -1- relocating out of Vernon, Bon Appetit has chosen to occupy a property located at 4700 Alcoa Avenue. Alcoa Bel Air, LLC is proposing to construct a new industrial building, approximately 49,988 square feet in size. The development proposal would bring the property into conformity with the automobile parking,truck parking, truck loading, and maneuvering requirements of the current City of Vernon Comprehensive Zoning Ordinance. The manufacturing operation proposed requires three (3) outdoor silos for the storage of flour. As proposed the site will not allow a building big enough to accommodate all their required manufacturing line and the three (3) storage silos without infringing into one of the required truck parking stalls. Therefore, Alcoa Bel Air, LLC is asking for a variance from the truck parking requirement Section 26.5.1-6(d) for a temporary reduction from the two (2)required truck parking positions down to one (1)truck parking space to accommodate the silo placements (see attached Site Plan"A"). PROJECT Alcoa Bel Air, LLC plans to demolish an old 60,000 square foot building on the property, used for warehousing and construct a new industrial building in its place. The new building will be approximately 49,988 square feet in size. The replacement building will be leased to Bon Appetit for a manufacturing facility and when constructed will fully comply with all zoning requirements. However, as part of their manufacturing line they plan on placing three (3) silos on one (1) of the two (2)required truck parking spaces. The silos would be removed if Bon Appetit were to move from this location. Moving this operation to another City would be an extreme hardship because Bon Appetit's operation depends on the proximity of its existing manufacturing plants to their distribution warehouse at 4820 50th Street. Alcoa Bel Air, LLC has owned the property for about two years. The development will conform to current building and zoning codes to provide full compliance for all future occupants (see attached Site Plan`B"). Table 26.5.3-3, of the Comprehensive Zoning Ordinance requires all nonconforming buildings to comply with all development and site planning standards upon any increase in building floor area and for all new construction. New construction means a new building that is not attached to an existing building. In this case Alcoa Bel Air, LLC intends to demolish the existing building and construct a state of the art new manufacturing building. The Applicant's development proposal would bring the property into conformity with all development and site planning standards. The Applicant will comply with the minimum requirements of the code by providing the required fifty(50) automobile parking spaces, five (5) truck loading spaces, and two (2)truck parking spaces. Because they plan on placing three (3) silos on one of the two required truck parking spaces they would not comply with the truck parking requirements contained in Section 26.5.1-6(d) of the Zoning Ordinance, thus prompting this variance application. The tenant states that trucks accessing the site will consist of two (2) small-box trucks going back and forth between the Alcoa facility and Bon Appetit's main distribution facility located at 4820 50th Street delivering finished goods and no more than two (2)trucks per day for deliveries of raw materials. They also stated that all distribution of goods to retail centers will emanate from the 50th Street distribution facility and the Alcoa facility will be used strictly as a manufacturing facility (Bakery). -2- NEED FOR VARIANCE Although the project complies with the automobile parking, truck parking,truck loading, and maneuvering requirements of the current Comprehensive Zoning Ordinance,the project will not comply with the requirement to have "two truck parking spaces"because they plan on placing three (3) silos on one (1) of the two (2)required truck parking spaces. Since, adequate parking and loading spaces to meet Bon Appetit's actual need, and no overflow parking onto adjacent side streets and the surrounding area is anticipated, there does not appear to be any need to provide the code required two (2)truck parking spaces. Staff recommends issuance of the variance with a condition that any change in occupancy, or use of the property, the permanent structures/equipment(3 silos) shall be removed in order to provide the minimum number of truck parking spaces shown on the development plan. CEQA ANALYSIS The proposed project is categorically exempt under the California Environmental Quality Act (CEQA) in accordance with Class 32, Section 15332, "In-Fill Development Projects",because: (i)the project is consistent with the City's General Plan and zoning regulations, (ii)the proposed development occurs within City limits on a Project site of no more than five acres substantially surrounded by urban uses, (iii)the Project site has no value, as habitat for any endangered,rare or threatened species, (iv) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and(v)the site can be adequately served by all required utilities and public services. Therefore,the project complies with the findings listed above and may be considered exempt from the California Environmental Quality Act under Section 15332 of the CEQA Implementation Guidelines, and under CEQA Guidelines section 15061(b)(3). Therefore, a Notice of Exemption will be prepared and filed with the County Clerk's office VARIANCE FINDINGS Staff finds the following to be true, and therefore recommends that the City Council make similar findings: a) The intended use of the lot constitutes a special circumstance or condition that does not apply generally to other properties in the same zone. Unlike other uses in the City,the proposed lot will be used exclusively for manufacturing with very little traffic. The tenant in this instance has a separate distribution facility where the majority of the trucking operations take place. The City is requiring that the project comply with the automobile parking, truck parking,truck loading, and maneuvering requirements of the current Comprehensive Zoning Ordinance. Because of their manufacturing line they plan on placing three (3) silos on one (1) of the two (2) y required truck parking spaces. The tenant requires all of the building space for its manufacturing operation. Therefore,the building size cannot be reduced. In addition, moving their operation to another City would be an extreme hardship because Bon Appetit's operation depends on the proximity of its existing manufacturing plants to their distribution warehouse at 4820 50th Street. Thus, the proposed use constitutes a special circumstance that is not generally applicable. -3- b) The strict or literal interpretation or application of the applicable development and site planning standards would result in practical difficulties and unnecessary hardships that would conflict with the purposes of the Zoning Code. The lot's space constraints make conforming to the truck parking requirements difficult without reconfiguring the proposed building foot print and parking lot, which would restrict Applicant from maximizing development of its lot merely because of the truck parking requirement. Denying this variance would create an undue hardship to the Applicant in that it would be deprived of the ability to fully develop its lot. Given that the new facility would be providing adequate parking and loading spaces to meet Bon Appetit's actual need and Bon Appetit only needs one (1)truck parking space, mandating the truck parking requirement would constitute an unnecessary hardship that is inconsistent with the purposes of the Comprehensive Zoning Ordinance of the City of Vernon,which are to authorize development that does not create unreasonable impacts on neighboring properties. c) The grant of the variance will not constitute a grant of special privileges. Because of the unique size of the lot,the requirement to meet the City's minimum code requirement for truck parking is overly burdensome and unnecessary. Sufficient automobile and truck parking will be provided to meet the needs and demands of the property and will continue to do so with the granting of this variance. As such, no special privilege is being granted by the approval of this variance. d) The project is consistent with the General Plan and complies with other applicable zoning provisions. The General Plan land use designation for the site is Industrial and its Zoning designation is also industrial. The use of the property as a Bon Appetit operation is consistent with general plan and will comply with all other applicable zoning provisions. e) A variance relieving the Applicant from Section 26.5.1-6(d) of the Comprehensive Zoning Ordinance, minimum truck parking requirements, will not adversely affect the interest of the public or the interest of other residents and property owners within the vicinity of the premises, because this variance would allow the placement of three (3) silos on one (1) of the two (2) required truck parking spaces with the understanding that upon any change in occupancy, or use of the property,the permanent structures/equipment(3 silos) shall be removed in order to provide the minimum number of truck parking spaces and ensure the parking goals of the Zoning Ordinance are met. The Applicant is providing ample truck parking and loading spaces for its tenant's needs. Additionally, no safety issues are being introduced by this variance. f) The grant of the variance places suitable conditions on the lot to protect surrounding properties and does not permit uses that are not otherwise allowed in the I-Zone, Industrial. The use is consistent with the City's Zoning Regulations which permits manufacturing uses in the I- Zone. The variance is conditioned upon compliance with the parking requirements of the Zoning Ordinance. This will assure that adequate on-site parking is maintained to minimize the possibility of on-street parking or staging occurring and will ensure that the impacts to the traveling public are minimized to a level of insignificance. -4- CONDITIONS Therefore, it is recommended that the variance be granted with the following conditions imposed on the permit to adequately protect the public interests: a. The facility shall be operated in accordance with all current codes, rules, and regulations and subject to permit fees as adopted by the City of Vernon not otherwise addressed by this grant of a variance. b. The facility shall be operated in a manner that will prevent unsanitary conditions, odors or other nuisances. C. At all times, all parking areas shall be: (1) striped in a manner acceptable to the Director of Public Works, Water& Development; (2)paved with a concrete or asphalt concrete paving or other surface reasonably acceptable to the Director of Public Works, Water&Development Services; (3) adequately drained; and(4)kept free of potholes, dust, mud,trash and weeds. d. Adequate truck parking and loading shall be provided at the site such that no trucks accessing the site shall be required to stage in the public street or onsite other than at a loading dock or truck parking space. e. Servicing of vehicles, including but not limited to,washing, steam cleaning and repairing, shall not be permitted on the premises.No inoperative vehicles shall be stored on-site. f. Upon any change in occupancy, or use of the property,the permanent structures/equipment(3 silos)placed on the truck parking space shall be removed in order to provide the minimum number of truck parking spaces. g. The parking and loading areas shall be maintained substantially in compliance with the site plan as submitted as part of this variance application, except as otherwise approved in writing by the Director of Public Works, Water& Development Services. h. Noncompliance with any of the conditions herein shall constitute sufficient grounds for the City Council of the City of Vernon to revoke this variance and require the removal of the silos and installation of the truck parking stall, or take appropriate enforcement action, including citation and or fines for a violation. i. Not later than twenty(20) days from the date of approval of the variance,the Applicant and Owner shall indicate, in writing, its acceptance of and agreement with the conditions herein. The Variance shall be void and of no force or effect unless such written acceptance and agreement is submitted to the City within the twenty-day period. j. Applicant, Owner, and any successors in interest shall indemnify, hold harmless and defend the City of Vernon, its officers, agents and employees from and against any and all claims, complaints or petitions for: (1) damages, losses, expenses resulting from bodily injury, sickness, disease, disability or death arising from the operation of the facility excluding therefrom any such claim resulting from the sole negligence or intentional wrongdoing of the City of Vernon, its officers, agents or employees; (2) a peremptory writ or other relief by way of injunction,mandamus, or administrative mandamus; and/or(3) legal expenses and attorney's -5- fees incurred by the City of Vernon on behalf of any party in such actions or proceedings. The City of Vernon does not waive its right to participate in the defense of any such action. Attachment(s) 1. Site Plan A and B 2. Variance Application and Supporting information 3. Proposed Resolution I I i i I -6- t F >p �j aJo=fQg $ Q w <z Y� s£M LL ¢ fffff ffff w a_ ----------...�.. ------ ------ .— a- _ N3MOd ONtl N3iVM ___ _ _ 53=NV S07—T0 �5 ` Q h;s °----------- ----- _=-------cn -- o __________________ �� w ?---„- 0. _ vk W j kqL a EDO 30 N3�tl — --,_.-- tl ------- — -- 001tl ti i u: ■ =s =op � s, _ Q LLp w J a 6 QZ A mLL QO Q>u_V¢^d _ a �z d B3MOd ONV d3tvm �s ff71-- - A51 y I � sexm A � � aemenru � ------------- W 0 j i L J I ® I I e K m d€. -` - 30N3Atl tl001tl ��------ =. �i 'C J For Official Use 01-fly 41,468400 Ac-coppt No.0 11.10 Iment of Comin't, ity se��Ices C y of Vernon,Depai in 4305 Santa Fe Avenue, Vernon,CA 90058 (323)583-8811 ZONING VARIANCE APPLICATION Applieation is hereby made to the City of Vernon,petitioning for a variance for thefiNoii)ing described properly Legal description (give exact legal description): General location (give street address):- H700 AL-QDA "e-NUE Name of Applicant(s):-- AL_ COA SC-L, 8-1k , tLC- (Print or Type narric of business) Mailing address: :�C(A-ELJA-4b VEIE�AWA) '700—<j L Record Owner(s) of property: At-UA agi, &jk-,.0 LLCI (Name) Mailing address: 1-1525 _W51KE Wr 80VL VA-P-A WVE"E" CA -Phone# a5aq-95- 00 Property Owner(s) representative: CM11-If (Name) Mailing address: 1-2-7"!- -P-C- H 5 -F- -E , LDM&- -1 Rr-A-C4 C-A 110LO R2 -t!�IT Relationship to Owner(s): El Engineer DContractor D Attorney EJ Pul-cliaser Dl-cssee -(s) must be attached. Written consent of ownei Present,use of property: q AC,&t4 -Present Zoning:. 2-0t3e Proposed use of property—M How long has owner(s) held title to this property?_ 42,0%z- Are there any easements controlling the use of this property') 0 Yes No Ifyes, describe �LK-E--h A&L:rA PT-?- J>PoT 147 Expiration date: Are there any private or deed restrictions controlling the use of this property 9 U Yes P4 No If yes, describe Variance applied for(described in detail the nature and purpose of this request for which the premises are to be used) attach additional sheet(s) if necessary:_. � -i -, I v, c NOTICE TO APPLICANT- In the variance procedure it shall be shown that the following five (5) conclitions exist in reference to the property being considered. The applicant should answer the Following.statements. If you have difficulty I:inding reasonable ansvvers to the statements contained in this application it may be an indication that your request has insufficient factors to justify approvat. (Attach,additional sheets) if necessary. 1. That special conditions and circumstances exist which are peculiar to the land, structure,or building involved and which are not generally applicable to other lands, structures.or buildings in the sanw vicinity and zone: c AGitta:� 2.. That literal interpretation of the provisions of this ordinance would deprive the applicaant of rights commonly enjoyed by other propertied in the same vicinity and zone in which the property is located,under the tenets of this chapter: 1. That the special conditions and circumstances do not result from actions of the applicant:.. raGTr. 4, That granting the variance requested will not confer on the applicant any special privilege that is denied by this Chapter to other lands,structures,or buildings in the same vicinity and zone in which the property is located: -b 5. That the granting of such variance will be in harmony and not adversely affect the Comprehensive General Plan. NOTE: Non-conforming use of neighboring lands, structures, or buildings shall not be considered grounds for the iSSUMICe of a variance. Is the required site and design plot plans showing the area covered in the legal description B and all existing and proposed improvements attached? In Yes 0 No Are the required three (3) area maps attached? Oyes 0 No Is there a certified list attached of names and mailing addresses of all property owners within 300' of the exterior boundaries of the property in this application? 0 Yes 0 -No Is the required fee enclosed"? Yes 0 No iWake chec*car more:,- order pa.wtble lo.-CzLtL, ot'Vernon. I declare under penalty of peKjury that to the best of my knowledge, and belief the foregoing is true,complete,and accurate. Signed: e:Dat 2( la Property o1A,11�erOr0VXj1er(s) representative ALCOA B EL AIR, LLC May 12, 2015 Mr. Kevin Wilson City of Vernon Department of Community Services 4305 Santa Fe Avenue Vernon, Calfiornia 90058 Re: 4700 Alcoa Avenue, Vernon, California 90058 Dear Mr. Wilson: Pacific Industrial has been hired by Alcoa Bel Air, LLC to act as development manager for the above referenced site. They are hereby authorized to submit,coordinate, and answer questions regarding the development of said site, including but not limited to, building plan submittals, permit issuance, and the zoning variance application. If you have any questions, please do not hesitate to contact me. Rega s, ` Mahasti Mashhoon Member Alcoa Bel Air, LLC MM/dab 4525 District Boulevard,Vernon,California 90058 (323)584-9500 I Zoning Variance Application 4700 Alcoa Avenue,Vernon Application Page 2,Variance applied for: Alcoa Bel Air, LLC dba Bon Appetit Bakery("Owner") has been operating in the City of Vernon since 1992. After 13 years,they currently have three manufacturing plants in the City and continue to grow. Their business is expanding quickly and a new facility is required in the Spring of 2016 to keep up with demand.Instead of relocating out of Vernon, Owner has elected to redevelop the land they already own at 4700 Alcoa Avenue. The site does not allow a building big enough to accommodate the required manufacturing line and product storage silos.Therefore,Owner is asking for a variance for a temporary reduction from two (2) required trailer parking positions down to one (1) provided trailer parking position to accommodate silo placement in the truck court(See attached Site Plan A). The proposed development will be built in compliance with all zoning and building codes for future use:attached is a plan showing Owner will provide 5 of 5 required loading positions and 2 of 2 required trailer parking positions (See attached Site Plan B).The proposed variance would allow a temporary reduction from two required trailer parking positions down to one provided trailer parking position to allow for silo storage.The silos can easily be removed in the future and the missing trailer position can quickly be restored if manufacturing operations cease. Application Page 2,Question 1: The proposed development is limited by the site square footage. The site does not allow a building big enough to accommodate the required manufacturing line and product storage silos.Their expansion must be complete by Spring 2016; finding another site and constructing the new facility in time would not be possible. Moving their operation to another city would be an extreme hardship because Owner's operation depends on the proximity of its manufacturing plants to their distribution warehouse at 4820 50th Street. If Owner has to relocate out of Vernon,this would result in decreased operations. Application Page 2,Question 2: Owner has a very specific operational requirement and is investing over 10 million dollars in a state-of-the-art production line for 4700 Alcoa Ave. The operation will continue to be consistent in its use and Owner has no doubt that additional trucks will NOT be needed in the future as part of this production line. Application Page 2,Question 3: The proposed development is limited by the site square footage. The Owner has owned this site for about two years and needs to utilize this project to accommodate expansion of its operations.The development will conform to current building and zoning codes to provide full compliance for all future occupants (see attached Site Plan B). Application Page 3,Question 4: Unlike many distribution users or speculative developers, Owner is asking for less truck use than is allowed per code and has a very precise understanding of their operations. Owner currently receives all deliveries of raw materials at their location at 4820 50th Street. From there,supplies are broken down and delivered via smaller box trucks to each of the production facilities,currently at 4525 District Blvd and 4529 District Blvd. The same system will be used for 4700 Alcoa Ave and Owner will have no more than two (2) trucks per day for deliveries. There are 5 loading positions and 1 parking position so it is clear that there will always be an open truck position and no staging of vehicles will be needed onsite. Application Page 3,Question 5: The proposed development will be built in compliance with all zoning and building codes. Attached is a plan showing that we are providing 5 of 5 required loading positions and 2 of 2 required trailer parking positions. Owner has no doubt that the temporary loss of the single trailer parking position will NOT harm the property or General Plan. Owner will have no more than two (2)trucks per day for deliveries. There are 5 loading positions and 1 parking position,which is more than adequate so it is clear that there will always be an open truck position and no staging of vehicles onsite. Their operation is very precise and there is no doubt that additional trucks will NOT be needed in the future as part of their operation. r OWN The undersigned has duly prepared the attached"Property Owners List". The list includes all of the names, and respective addresses, of persons being owners of property any part of which is within 300 feet of the outer boundaries of the subject property. This information is to be obtained from the latest available Los Angeles County Tax Assessment Roll. This list was prepared on S�/ �J� from the Tax Roll maintained at�� ✓ �C—G�✓�S / i %' f 4^�G/�� (Name and Location of office) It is understood that the accuracy and completeness of this list is the responsibility of the applicant. Signed: 2 r— (Person who prepare ist) I i I On this day of 2�0'�7iehne the undersigned, a Notary Public in and for said County and State personally appeared known to me, or proven to me to be the person that executed the within instrument. WITNESS my hand and official seal i Notary Public in and for said County and State My commission expires: i Signed: (Applicant) i ACKNOWLEDGMENT A notary public or other officer completing this i 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. State of California County of ) On /,// //� before me, mu—L� e name and title of the offi ) personally appeared who proved to me on the basis of satisfactory evidence tolbd the rson(s)whose name( is/are s bscribed to the within instrument and acknowl ed to me th he he/they executed the same in ii her/their authorized capacity(ies), and that his er/their si ure(s) on the instrument the erson s or the entit u on behalf of which the person(s)s acted, executed the instrument. P ( ), Y P p ( ) I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my and and official seal. LYNETTE MICHELLE GROGAN .w COMM.#1971M rn sn Notary Publ"alffomia LA KERN COUNTY Signatu Seal) My COMM.Exp.MAR 11,2016 1 , �1 1 I �8• 19 1 -----� r--- i --- a/tr/ I ,lit III I s II pit II 1 •i 1 r a 9� -- sm'9`--- Y u/�n•4rw. 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' Sens de reveler le rebord Pop-upM` 1-800-GO-AVERY 9 I chargement l 1 u: aJ `ate u'¢v �> HHm ohs mLL a 22 22 22< 22 sc f o N 6 $ a a N3MOd ONtl 1]31VM -- ------------- -- -- �_ Q -------- A o JM =_--------_--- _ < I a W 0 I � 0 0 I j a a,1 . 30N3AV tl001tl � =W y.3 i � ZOLL ao Q" o'z_coag`> a u� g s H� 5 922 m j 111 111111 zz Yses c kl UN 4� 6y4 -- d� N MOd ONV U31VM — W-�-lS377-99tl SOl J CC 7170------W-v - � s ii __________________ e i i a .N _________ ®. --____-__--_____ ''a i UJ i a E7 d�R --� 30N3AV VOOltl -�----_^- -,W N3 LEGAL DESCRIPTION 4700 ALCOA AVE, VERNON THAT CERTAIN PARCEL OF LAND SITUATED, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND BEING THAT PORTION OF LOT 21 IN THE 500 ACRE TRACT OF LOS ANGELES FRUITLAND ASSOCIATION, AS PER MAP RECORDED IN BOOK 3 PAGES 156 AND 157 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE POINT OF INTERSECTION OF THE EASTERLY LINE OF ALCOA AVENUE, FORMERLY, MAGNOLIA AVENUE, AS SAID ALCOA AVENUE NOW EXISTS 50.0 FEET IN WIDTH WITH THE NORTHERLY LINE OF THE STRIP OF LAND 17.0 FEET IN WIDTH CONVEYED TO LOS ANGELES AND SALT LAKE RAILROAD COMPANY, BY DEED RECORDED IN BOOK 15607 PAGE 262, OFFICIAL RECORDS, OF SAID COUNTY; THENCE EASTERLY 336.90 FEET, ALONG SAID NORTHERLY LINE TO THE WESTERLY LINE OF THE 100.00 FOOT STRIP OF LAND CONVEYED TO THE CITY OF LOS ANGELES, BY DEED RECORDED IN BOOK 6788 PAGE 245, OFFICIAL RECORDS, OF SAID COUNTY; THENCE NORTHERLY 420.20 FEET ALONG SAID WESTERLY LINE TO THE NORTHERLY LINE OF SAID LOT 21; THENCE WESTERLY 336.83 FEET ALONG SAID NORTHERLY LINE TO THE EASTERLY LINE OF ALCOA AVENUE; THENCE SOUTHERLY 420.44 FEET ALONG SAID EASTERLY LINE TO THE POINT OF BEGINNING. 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A t.¢,4b@5 gY y5ei pe egeg§ dpg�i6 ggq�� ptl Y @[@[ apge g§y@ 5 5�ei a @q,�ppb 5ge Y a 1 Chicago Title Company g p Y Commercial/Industrial Division, 700 South Flower, Suite 800 Los Angeles, CA 90017 (213) 488-4300 Title Department: Escrow Department: Chicago Title Company Commerce Escrow Attn: Dave Balassi Attn: Duane Butler Email: Dave.Balassi@CTT.com Email: duane.butler@comescrow.com Phone: (213) 488-4394 Phone: (213) 484-0855 Fax: (213)488-4360 Fax: (213) 484-0417 Order No.: 116744933-X49 PRELIMINARY REPORT Property Address: 4700 Alcoa Avenue, Vernon, CA Dated as of. April 10, 2015 at 7:30 am In response to the application for a policy of title insurance referenced herein, Chicago Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said Policy forms. The printed Exceptions and Exclusion from the coverage and Limitations on Covered Risks of said Policy or Policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible.Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance,a Binder or Commitment should be requested. The policy(s)of title insurance to be issued hereunder will be policy(s)of Chicago Title Insurance Company Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. CLTA Preliminary Report Form-Modified(11-17-06) Page I Order No.: 116744933-X49 SCHEDULE A 1. The estate or interest in the land hereinafter described or referred to covered by this report is: A Fee 2. Title to said estate or interest at the date hereof is vested in: Alcoa Bel Air,LLC, a Nevada limited liability company 3. The land referred to in this report is situated in the State of California, County of Los Angeles and I is described in the Legal Description, attached hereto: i f I{ i END OF SCHEDULE A CLTA Preliminary Report Form-Modified(11-17-06) Page 2 , Order No.: 116744933-X49 LEGAL DESCRIPTION THAT CERTAIN PARCEL OF LAND SITUATED, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND BEING THAT PORTION OF LOT 21 IN THE 500 ACRE TRACT OF LOS ANGELES FRUITLAND ASSOCIATION, AS PER MAP RECORDED IN BOOK 3 PAGES 156 AND 157 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE POINT OF INTERSECTION OF THE EASTERLY LINE OF ALCOA AVENUE, FORMERLY, MAGNOLIA AVENUE, AS SAID ALCOA AVENUE NOW EXISTS 50.0 FEET IN WIDTH WITH THE NORTHERLY LINE OF THE STRIP OF LAND 17.0 FEET IN WIDTH CONVEYED TO LOS ANGELES AND SALT LAKE RAILROAD COMPANY, BY DEED RECORDED IN BOOK 15607 PAGE 262, OFFICIAL RECORDS, OF SAID COUNTY; THENCE EASTERLY 336.90 FEET, ALONG SAID NORTHERLY LINE TO THE WESTERLY LINE OF THE 100.00 FOOT STRIP OF LAND CONVEYED TO THE CITY OF LOS ANGELES, BY DEED RECORDED IN BOOK 6788 PAGE 245 OFFICIAL RECORDS, OF SAID COUNTY; THENCE NORTHERLY 420.20 FEET ALONG SAID WESTERLY LINE TO THE NORTHERLY LINE OF SAID LOT 21; THENCE WESTERLY 336.83 FEET ALONG SAID NORTHERLY LINE TO THE EASTERLY LINE OF ALCOA AVENUE; THENCE SOUTHERLY 420.44 FEET ALONG SAID EASTERLY LINE TO THE POINT OF BEGINNING. EXCEPT THE NORTHERLY 170.00 FEET OF SAID LAND. ALSO EXCEPTING THEREFROM ALL MINERALS AND MINERAL RIGHTS, INCLUDING OIL AND GAS RIGHTS. END OF LEGAL DESCRIPTION CLTA Preliminary Report Form-Modified(11-17-06) Page 3 Order No.: 11674493 3-X49 SCHEDULE B At the date hereof, items to be considered and exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: A. Taxes for the fiscal year 2015-2016 which are a lien not yet due and payable. B. Property taxes, including any assessments collected with taxes, for the fiscal year 2014-2015 1"Installment: $27,177.57 2°a Installment: $27,177.55 Code Area: 0010718 Assessors Parcel Number: 6303-019-011 C. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Part 0.5, Chapter 3.5 or Part 2, Chapter 3, Articles 3 and 4 respectively (commencing with Section 75) of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A; or as a result of changes in ownership or new construction occurring prior to date of policy. 1. Intentionally omitted. 2. Intentionally omitted. 3. An unrecorded lease with certain terms, covenants, conditions and provisions as set forth therein as disclosed by a document. Lessor: Packaging Advantage Property Associates, LLC, a California limited liability company Lessee: Packaging Advantage Corp., a California corporation Disclosed By Memorandum of Lease Recorded: April 18, 2000 as Instrument No. 00-0577996, of Official Records The present ownership of the leasehold created by said lease and other matters affecting the interest of the lessee are not shown herein. 4. Intentionally omitted. 5. Water rights, claims or title to water, whether or not disclosed by the public records. CLTA Preliminary Report Form-Modified(11-17-06) Page 4 Order No.: 116744933-X49 SCHEDULE B (continued) 6. Any rights, claims or interests that may exist or arise by reason of the following facts disclosed by a map dated December 12, 2011 of an ALTA/ACSM Land Title Survey completed during November of 2011 prepared by or under the direction of Jerald E. Anhorn, Jr., of or for Cornwell and Associates,Inc., Job No. 251-18: (a) Railroad tracks on the south side of the subject property enter from the east adjoiner. (b) An asphalt concrete driveway extends across the east line of surveyed property. (c) There are post indicator valves and a fire sprinkler connection on the north side of surveyed property. 7. Any rights of parties in possession of said land,based on any unrecorded lease, or leases. This Company will require a full copy of any unrecorded lease, together with all supplements, assignments, and amendments for review. END OF SCHEDULE B CLTA Preliminary Report Form-Modified(11-17-06) Page 5 Order No.: 116744933-X49 INFORMATIONAL NOTES Note No. 1: Section 12413.1, California Insurance Code became effective January 1, 1990. This legislation regulates the disbursement of funds deposited with any title entity acting in an escrow or sub-escrow capacity. The law requires that all funds be deposited and collected by the title entity's escrow and/or sub-escrow account prior to disbursement of any funds. Some methods of funding may be subject to a holding period, which must expire before any funds may be disbursed. In order to avoid any such delays, all funding should be done via wire transfer. Funds deposited with the Company via wire transfer may be disbursed upon receipt. Funds deposited by cashiers checks, certified checks, and teller's checks is one business day after the day deposited. Other checks may require hold periods from two to five business days after the day deposited, and may delay your closing. The Company may receive benefits from such banks based upon the balances in such accounts. Such benefits will be retained by the Company as part of its compensation for handling such funds. Note No. 2: The charge where an order is cancelled after the issuance of the report of title, will be that amount which in the opinion of the Company is proper compensation for the services rendered or the purpose for which the report is used, but in no event shall said charge be less that the minimum amount required under Section 12404.1 of the Insurance Code of the State of California. If the report cannot be cancelled "no fee" pursuant to the provisions of said Insurance Code, then the minimum cancellation fee shall be that permitted by law. Note No. 3: California Revenue and Taxation Code Section 18668, effective January 1, 1991, requires that the buyer in all sales of California Real Estate, withhold 3-1/3% of the total sales price as California State Income Tax, subject to the various provisions of the law as therein contained, and as amended. Note No. 4: Wire Transfers In the event your transaction is being escrowed by a Chicago Title office, contact should be made with the office to obtain correct wiring instructions. Failure to do so could result in a delay in the receipt of funds and subsequent closing of your transaction. Chicago Title will disburse by wire-out only collected funds or funds received by confirmed wire-in. The Company's wire-in instructions are: Bank: Bank of America 275 Valencia Blvd,2nd Floor Brea, CA 92823 Bank ABA No.: 0260-0959-3 Account Name: Chicago Title Company,Broadway Plaza Office Account No.: 12351-50737 For Credit To: Chicago Title Company 700 South Flower, Suite 800 Los Angeles, CA 90017 Order No.: 116744933-X49 CLTA Preliminary Report Form-Modified(11-17-06) Page 6 Order No.: 116744933-X49 INFORMATIONAL NOTES (continued) LENDER NOTE: On the DATE you fund the Loan and WIRE Funds to Chicago Title and reference the above Order Number, you must send written NOTICE to the Title Officer's Unit by messenger or E-Mail that you sent the Funds. Chicago Title will send an E-Mail acknowledging receipt of the funds as soon as practicable. Chicago Title will NOT be responsible for any delay in Closing and Recording the transaction, nor will Chicago Title be liable for any claim of lost Interest unless such written Notice is sent the day of Funding and Chicago Title has acknowledged receipt of funds. Note No. 5: Your application for title insurance was placed by reference to a street address or assessor's parcel number. Based upon our records, we believe that the description in this report covers the parcel that you requested. To prevent errors, we require written confirmation that the legal description contained herein covers the parcel that you requested. Note No. 6: The plat, (map), which is attached to this report, is to assist you in locating land with reference to streets and other parcels. While this plat is believed to be correct, the Company assumes no liability for any loss occurring by reason of reliance thereon. Note No. 7: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitration provisions and any other provisions pertaining to your Title Insurance coverage. Note No. 8: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the amount, if any, set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. CLTA Preliminary Report Form-Modified(11-17-06) Page 7 i Order No.: 116744933-X49 INFORMATIONAL NOTES (continued) Note No. 9: Important notice regarding documents to be recorded in the Los Angeles County. Please review the following CRITICAL MESSAGE from the Los Angeles County Recorder's Office as it will likely impact your closing: SUBJECT: ACCEPTANCE OF NOTARY ACKNOWLEDGEMENTS Effective May 1, 2008, the Los Angeles Registrar-Recorder/County Clerk's Office will work diligently to be more efficient in examining notary acknowledgements as our part in minimizing notary fraud. In our efforts, we will strictly adhere to the following requirements for accepting Notary Acknowledgments/Certificates: • Notaries must comply with the requirements set forth by the state where the oath is administered. • Notary Acknowledgments/Certificates may not contain white-out, corrective tape, arrows and/or asterisks. • Notary Acknowledgments/Certificates completed by a California Notary that are destined for recording in the County of Los Angeles must be presented exactly in the form prescribed by Civil Code Section 1189(a)(1). A Notary Acknowledgment/Certificate that does not meet existing state requirements in addition to the requirements set forth above may not be re-submitted after it has been rejected by the Recorder. A new Notary Acknowledgment/Certificate will be required when re-submitting a rejected document. If you have any questions, please contact the Registrar-Recorder/County Clerk at(562)462-2125. Note No. 10: This Company will require for review the following documents from the following Limited Liability Company: Packaging Advantage Property Associates A. A copy of its Operating Agreement and any and all amendments, supplements and/or modifications thereto, certified by the appropriate manager. B. Confirmation that its Articles of Organization (LLC-1), and Certificate of Amendment (LLC-2), any restated Articles of Organization(LLC-10) and/or any Certificate of Correction (LLC-11)have been filed with the Secretary of State. C. If the Limited Liability Company is member-managed a full and complete list of members certified by the appropriate manager. D. If the Limited Liability Company was formed in a foreign jurisdiction, evidence, satisfactory to the Company, that it was validly formed, is in good standing and authorized to do business in the state of origin. E. If the Limited Liability Company was formed in a foreign jurisdiction, evidence satisfactory to the Company, that it has complied with California"doing business"laws, if applicable. CLTA Preliminary Report Pone-Modified(11-17-06) Page 8 Order No.: 116744933-X49 INFORMATIONAL NOTES (continued) I i I i I I CLTA Preliminary Report Form-Modified(11-17-06) Page 9 Order No.: 116744933-X49 INFORMATIONAL NOTES (continued) ATTACHMENT ONE PRIVACY STATEMENT IMPORTANT INFORMATION: For those of you receiving this report by electronic delivery the Privacy Statement and Attachment One are linked to this report. Please review this information by selecting the link. For those of you who are receiving a hard copy of this report, a copy of this information has been submitted for your review. CLTA Preliminary Report Form-Modified(11-17-06) Page 10 Order No.: 116744933-X49 INFORMATIONAL NOTES (continued) NOTICE You may be entitled to receive a $20.00 discount on escrow services if you purchased, sold or refinanced residential property in California between May 19, 1995 and November 1, 2002. If you had more than one qualifying transaction,you may be entitled to multiple discounts. If your previous transaction involved the same property that is the subject of your current transaction,you do not have to do anything; the Company will provide the discount, provided you are paying for escrow or title services in this transaction. If your previous transaction involved property different from the property that is subject of your current transaction, you must - prior to the close of the current transaction - inform the Company of the earlier transaction, provide the address of the property involved in the previous transaction, and the date or approximate date that the escrow closed to be eligible for the discount. Unless you inform the Company of the prior transaction on property that is not the subject of this transaction, the Company has no obligation to conduct an investigation to determine if you qualify for a discount. If you provide the Company information concerning a prior transaction, the Company is required to determine if you qualify for a discount which is subject to other terms and conditions. CLTA Preliminary Report Form-Modified(11-17-06) Page 11 AFFIDAVIT OF MAILING STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF VERNON ) I, Sergio Canales, Assistant Planner of the City of Vernon, do hereby certify that on Wednesday, June 3, 2015, mailed a copy of Notice of Public Hearing, to be held on June 16, 2015, regarding a Variance for Alcoa Bel Air, LLC located at 4700 Alcoa Avenue, to the interested parties and agencies on the attached list, by United States Mail with stage. Date: Sergio'Canales,Canales, Assistant Planner 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 the document. State of California ) ss County of Los Angeles ) On before me, Ma11750 f�� , notar y public, personally appeared Sergio Canales who proved to me on the&Jis of satisfactory evidence to be the persons)whose name(o is/afe subscribed to the within instrument and acknowledged to me that he/she/the executed the same in his4ief/thek authorized capacity{), and that by his"heir signature(s)on the instrument the person(s), or the entity upon behalf of which the person(-) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. fa� MARISOI TRUd1LL0 NWOq 0/� 3 �Ooyg311 9 ft Signature A"ftim On 3G7S agnat e of Notary Public pF vER p~ 'y 4305 Santa Fe Avenue City of Vernon Vernon,CA 90058 (323)583-8811 GS�VELY tNOtl NOTICE OF PUBLIC HEARING The City Council of the City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall, City Council Chambers 4305 Santa Fe Avenue Vernon,CA 90058 DATE & Tuesday,June 16,2015 at 9:00 a.m. TINIE: (or as soon thereafter as the matter can be heard) APPLICANT: Alcoa Be[Air,LLC REQUEST: Alcoa Bel Air,LLC is requesting on behalf of its tenant Bon Appetit Danish, Inc. (Bon Appetit) a variance from Table 26.5.1-6(d)of the City's Zoning Ordinance, minimum truck parking requirement. Alcoa Bel Air,LLC is proposing to construct a state of the art new manufacturing building.The development proposal would bring the property into conformity with the automobile parking,truck parking,truck loading, and maneuvering requirements of the current City of Vernon Comprehensive Zoning Ordinance.Bon Appetit's manufacturing operation proposed requires three(3) outdoor silos for the storage of flour.The proposed site will not allow a building big enough to accommodate all their required manufacturing line and the three(3)storage silos without infringing into one of the required truck parking stalls.Therefore,Bon Appetit is asking for a variance from the truck parking requirement for a temporary reduction from the two(2)required truck parking positions down to one(1) truck parking space to accommodate the silo placements. PROPERTY 4700 Alcoa Avenue,Vernon,CA 90058 INVOLVED: REVIEW OF: The application, maps, and supporting information are available for THE FILE: public review during normal business hours in the Vernon Public Works,Water& Development Services Department, located at 4305 Santa Fe Avenue,Vernon,CA 90058,between the hours of 7:15 a.m. and 5:15 p.m.Monday through Thursday. PROPOSED Staff plans to recommend that the Vernon City Council determine that CEQA the proposal will not have a significant effect on the environment and is FINDING: exempt from the California Environmental Quality Act(CEQA). The conditions imposed on the variance are designed to protect the environment,public health, safety and general welfare. If you challenge the granting of the variance or any provisions thereof in court,you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at,or prior to,the meeting.The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: Ma 'a Ayala,City C ,r Easy Peel'Labels i ♦ Bend along line to i n AVERY®6240Tm i Use Avery®Template 51600/816OTM � Feed Paper expose Pop-up Edge*"' 6303-019-011 1 6303-016-001 2 6303-017-022 3 ALCOA BEL AIR LLC PATRICIA J ST JOHN 4441 DOWNEY ROAD LLC 4525 DISTRICT BLVD 495, BELLMORE WAY PO BOX 58168 VERNON CA 90058 PASADENA CA 91103 VERNON CA 90058 6303-017-025 4 6303-017-272/019-271/026-270 5,11,22 6303-019-010 6 FORCE 44TH STREET LLC L A CITY DEPT OF WATER AND POWER MYRON K ROBERTS 7901 CROSSWAY DR PO BOX 51111 341 S WETHERLY DR PICO RIVERA CA 90660 LOS ANGELES CA 90051 BEVERLY HILLS CA 90211 6303-019-012 7 6303-019-013,14,15 8,9,10 6303-019-801,802 12,13 3301 LEONIS LLC PACKAGING PROPERTY ASSOCIATES LLC UNION PAC R R CO B OF E PAR 44 MAP 11620 WILSHIRE BLVD#1000 4633 S DOWNEY RD 843-19-22B LOS ANGELES CA 90025 LOS ANGELES CA 90058 1700 FARNHAM ST#105-F OMAHA NE 68102 6303-020-008 14 6303-020-010,012 15,16 6303-020-012 16 YANG PAUL J CO TR 45TH STREET LLC 45TH STREET LLC 3251 LEONIS BLVD 9437 SANTA MONICA BLVD#208 PO BOX 2591 VERNON CA 90058 BEVERLY HILLS CA 90210 HUNTINGTON PARK CA 90255 6303-025-024 17 6303-026-005 18 6303-026-006 19 DEUTSCH SDL LTD ISRAEL&LUCIA FEIT FRANCIS K&TOREAY L LYNN 2444 WILSHIRE BLVD#600 3111 BEL AIR DR#20F 451 W LONGDEN AVE SANTA MONICA CA 90403 LAS VEGAS NV 89109 ARCADIA CA 91007 6303-026-007 20 6303-026-008 21 RAHMANPOUR NEAMATOLLAH CO TR LA BANZAI 1029 S SHERBOURNE DR 3300 LEONIS BLVD LOS ANGELES CA 90035 VERNON CA 90058 tiquettes faciles a peter ; A Repliez a la hachure afin de; www.averycom Utilisez le gabarit AVERY®51600/8160". Sens de' reveler le rebord Pop-upM` 1-800-GO-AVERY ' Alchargement j 1 0918/09190AaaAd oaAe alglledwoo ww�q x ww 5Z lewaol op allanbll3 09 G8/0915®AaaAb Ul!m alglledwoo„g/5 Z x,,1 azls lagel City of Huntington Park Lucille Roybal-Allard John Kinas Planning Department Congresswoman United States Aluminum 6550 Miles Avenue 500 Citadel Drive, Ste 320 3663 Bandini Boulevard Huntington Park,CA 90255 Commerce,CA 90040 Vernon,CA 90023 L.A. County Board of Supervisors Director of Planning Gloria Molina Ms. Gutierrez James Herd—Roorn 1390 Board of Supervisors 924 S.Mott Street 320 W. Temple Street 500 W.Temple St., Ste 856 Los Angeles, CA 90023 Los Angeles,CA 90012 Los Angeles,CA 90012 South Coast Air Quality Mgmt City of Long Beach James H. Hillands District(AQMD) Office of the City Manager Heger Realty Corp. 21865 E.Copley Drive 333 W.Ocean Blvd., 131 floor 5657 E.Washington Blvd. Diamond Bar,CA 91765 Long Beach,CA 90802 Los Angeles, CA 90040 Brian Scanlon E.J. Contreras Joseph R. Garruba L.A. County Public Works Owens-Brockway California Portland Cement Co. Mapping&Property Mgmt. 2901 Fruitland Avenue 2025 E.Financial Way 900 S.Fremont Avenue, 10`h Floor Vernon,CA 90058 Glendora, CA 91740 Alhambra,CA 91803 City of Commerce California Water Service Comp. J.J.Little Planning Department 3316 West Beverly Boulevard J.J.Little Company,Inc. 2535 Commerce Way 9945 Malgar Drive Commerce,CA 90040 Montebello,CA 90640 Whittier,CA 90603 Marisa Olguin L.R.Lu en City of Bell Chamber of Commerce pp Planning Department Metal Products Engineering 6330 Pine Street 3801 Santa Fe Avenue 3050 Leonis Boulevard Bell, CA 90201 Vernon,CA 90058 Vernon,CA 90058 City of Cudahy State Clearinghouse Ellen Orlando Planning Department P.O.Box 3044 Karen Lehrer 5220 Santa Ana Street Sacramento,CA 95812-3044 2300 E. 11'h Street Cudahy, CA 90201 Los Angeles, CA 90021 L.A. County Sanitation District L.A.County Flood Control District Maywood Mutual Water Co.3 P.O.Box 4998 900 S.Fremont Avenue 6151 Heliotrope Avenue Whittier, CA 90607 8`h Floor Maywood,CA 90270 Alhambra, CA 91803 City of Maywood L.A.Unified School District So. Cal Edison Planning Department Office of Environmental Health&Safety 1924 Cashdan Street 4319 Slauson Avenue 333 South Beaudry Ave.,201hFloor Compton, CA 90220 Maywood,CA 90270 Los Angeles,CA 90017 Attn:Mike Frazier Attention: Glenn Striegler Suk Chon City of Los Angeles County of Los Angeles Dave Karrker Planning Department Department of Public Works California Water Service 200 North Spring St. Land Development Division 5243 E. Sheila Street Los Angeles, CA 90012 P.O.Box 1460 Commerce,CA 90022 Alhambra,CA 91802-1460 label size 1"x 2 5/8"compatible with Avery 05160/8160 ' ' Etiquette de format 25 mm x 67 mm compatible avec Avery 05160/8160 0919/0915o Aaany aaAe alglledwoo ww�q x ww 9Z lewaol ap 91lanbll3 091.9/09 G5o AJGAy gllM algiledwoo«8/9 Z x, L ezls lagel Reynan L.Ledesma The Gas Company(So. Cal Gas Co.) L.A.Junction Railroad Department of Water&Power L.A. P.O.Box 3150 4433 Exchange Avenue 111 N.Hope Street San Dimas, CA 91773 Vernon,CA 90058 Los Angeles,CA 90012 Attn: Marion Alexander Burlington Northern Santa Fe Railroad Alcoa Bel Air,LLC Emily Mandrup 3770 E.Washington Blvd. 4525 District Boulevard 6272 Pacific Coast Highway Los Angeles,CA 90023 Vernon, CA 90058 Suite E Attn: Dick Ebel Long Beach,CA 90803 1� label size 1"x 2 5/8"compatible with Avery 05160/8160 Etiquette de format 25 mm x 67 mm compatible avec Avery 05160/8160 I CITY OF VERNON NOTICE OF PUBLIC HEARING The City Council of the City of Vernon will conduct a IPublic Hearing,which you may attend. PLACE-. Vernon City Hall, City Council Chambers 4305 Santa Fe.Avenue, Vernon, CA 90058 DATE & Tuesday, June 16, 2015 at 9:00 a.m. TIME: (or as soon thereafter as the matter can be heard) APPLICANT. Alcoa IB61 Air, LLC REQUEST: Alcoa Bel Air, LLC is requesting on behalf of its tenant Bon A,ppetit Danish, Inc. (Bon Appetit) a variance from Table 26-5.1-6(d) of the City's Zoning Ordinance, minimum truck parking requirement.Alcoa BellAir, LLC is proposing to construct a state of the art new manufacturing 2 coll x 5.2611 building- The development proposal would bring the property into conformity with the automobile parking, truck parking, truck loading, and 10.5 Column Inches (CI) maneuvering requirements of the current City of Vernon Comprehensive at $32.00 per Go Zoning Ordinance. Bon Appetifs manufacturing operation proposed requires three (3) outdoor silos for the storage of flour. The proposed site $336 peir pub date will not allow a building big enough to accommodate all their required manufacturing line and the three (3) storage silos without infringing City of Vernon Rate into one of the required truck parking stalls.. Therefore, Bon Appetit is asking fora variance from. the truck parking requirement for 2 temporary $262.50 total reduction from the two (2)required truc°k parking positions down to one(1) truck parking space to accommodate the silo placements. PROPERTY INVOLVED: 4700 Alcoa Avenue, Vernon, CA 90058 REVIEW OF: The application, maps, and supporting information are TREFILE. available for public review during normal business hours in the Vernon Public'Works, Water& Development Services Department, located at 4305 Santa Fe Avenue, Vernon, CA 90058, between the hours of 7:15 a.m. and 5.15 p.m. Monday through Thursday. PROPOSED Staff plans to recommend that the Vernon City Council CEQA determine that the proposal will not have a significant FINDING.- effect on the environment and is exempt from the California Environmental Quality A,ct ,(CEQA). The conditions imposed on, the variance are designed to protect the environment, public health, safety I and general welfare. I f you challenge the granting of the variance or any provisions thereof in court, you may be limited to raising only those issues you or someone else', raised at the hearing described in this notice or in written correspondence delivered to the City of Verrion at, or ;prior to, the meeting. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: Jua&_2, 2_Q L&Lmada .Ayala_ I RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING A VARIANCE TO ALCOA BEL AIR, LLC FROM SECTION 26 . 5 . 1-6 (d) OF THE VERNON CITY CODE, FOR THE PROPERTY LOCATED AT 4700 ALCOA AVENUE WHEREAS, Alcoa Bel Air, LLC on behalf of its tenant Bon Appetit Danish, Inc . ("Bon Appetit" ) has requested a variance from Section 26 . 5 . 1-6 (d) , Minimum Truck Parking Requirements, of the Comprehensive Zoning Ordinance; and WHEREAS, Alcoa Bel Air, LLC (the "Applicant" ) owns the property located at 4700 Alcoa Avenue, in the City of Vernon; and WHEREAS, Bon Appetit is proposing to lease the building from Alcoa Bel Air, LLC located at 4700 Alcoa Avenue; and WHEREAS, the Property is located in the I-Zone, Industrial; and WHEREAS, Bon Appetit is a wholesale bakery manufacturer, specializing in gourmet baking and distribution of top quality Danishes, cakes, muffins and other baked goods; and WHEREAS, the Applicant plans to demolish an existing 60, 000 square foot building and construct a state of the art new manufacturing building approximately 49, 988 square feet in size; and WHEREAS, the Applicant' s development proposal would bring the property into conformity with all development and site planning standards; and WHEREAS, the Applicant will comply with the minimum requirements of the code by providing the required fifty (50) automobile parking spaces, five (5) truck loading spaces, and two (2) truck parking spaces; and WHEREAS, the manufacturing operation proposed requires three (3) outdoor silos for the storage of flour, as proposed the site will not allow a building big enough to accommodate all their required manufacturing line and the three (3) storage silos without infringing into one (1) of the required truck parking stalls; and WHEREAS, moving this operation to another City would be an extreme hardship because Bon Appetit' s operation depends on the proximity of its existing manufacturing plants to their distribution warehouse at 4820 50th Street; and WHEREAS, due to the lot' s space constraints, conforming to the truck parking requirement would be difficult without reconfiguring the proposed building foot print and parking lot, which would restrict the Applicant from maximizing development of its lot merely because of the truck parking requirement; and WHEREAS, denying this variance would create an undue hardship to the Applicant in that it would be deprived of the ability to fully develop its lot; and WHEREAS, given that the new facility would be providing adequate parking and loading spaces to meet Bon Appetit' s actual need and Bon Appetit only needs one (1) truck parking space, mandating the truck parking requirement would constitute an unnecessary hardship that is inconsistent with the purposes of the Comprehensive Zoning Ordinance of the City of Vernon, which are to authorize development that does not create unreasonable impacts on neighboring properties; and WHEREAS, Bon Appetit stated that trucks accessing the site will consist of two (2) small-box trucks going back and forth between the Alcoa facility and Bon Appetit' s main distribution facility located at 4820 50th Street delivering finished goods and no more than two (2) trucks per day for deliveries of raw materials; and - 2 - WHEREAS, Table 26 . 5 . 3-3, of the Comprehensive Zoning Ordinance requires all nonconforming buildings to comply with all development and site planning standards upon any increase in building floor area and for all new construction (i .e. creating a new building that is not attached to an existing building) , in this case Alcoa Bel Air, LLC intends to demolish the existing building and construct a state of the art new manufacturing building; and WHEREAS, the Applicant is requesting that it be permitted to place three (3) silos on one (1) of the two (2) required truck parking spaces with the understanding that upon any change in occupancy, or use of the property, the permanent structures/equipment (3 silos) shall be removed in order to provide the minimum number of truck parking spaces; and WHEREAS, the Director of Public Works, Water & Development Services has recommended that the City find that the Project is categorically exempt under the California Environmental Quality Act (CEQA) in accordance with Class 32, Section 15332, "In-Fill Development Projects" , because: (i) the project is consistent with the City' s General Plan and zoning regulations, (ii) the proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses, (iii) the project site has no value, as habitat for any endangered, rare or threatened species, (iv) approval of the project would not result in any significant effects relating to traffic, noise, air quality or water quality; and (v) the site can be adequately served by all required utilities, and public services; and WHEREAS, a Notice of Exemption will be prepared and filed with the County Clerk; and 3 - WHEREAS, the City Council has received a Staff Report dated June 16, 2015, upon which it has relied in making the foregoing recitals; and WHEREAS, the City Council of the City of Vernon held a hearing on said application for a variance on June 16, 2015 . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon further finds that all persons have had the opportunity to be heard or to file written comments to the proposed Project and after due consideration of all the evidence submitted at the public hearing determines that there are compelling reasons to justify granting a variance. SECTION 3 : The City Council of the City of Vernon hereby finds that the proposed activity is categorically exempt pursuant to Section 15332 of the California Environmental Quality Act and directs the City Clerk, or the City Clerk' s designee, to file a Notice of Exemption in regard to the environmental impact of said project with the County Clerk of the County of Los Angeles . SECTION 4 : The custodian of records for the proposed activity and all other material that constitute the record of proceedings upon which the City Council' s decision is based is the City Clerk of the City of Vernon. Those documents are available for public review in the Office of the City Clerk located at 4305 Santa Fe Avenue, Vernon, California 90058 . SECTION 5 : The City Council of the City of Vernon hereby approves the variance from Section 26 . 5 . 1-6 (d) of the Comprehensive - 4 - Zoning Ordinance and the variance is hereby granted to the Applicant for the Project based on the following findings as required by Section 26 . 6 . 2-5 of the Vernon Zoning Code : a. The intended use of the lot constitutes a special circumstance or condition that does not apply generally to other properties in the same zone. Unlike other uses in the City, the proposed lot will be used exclusively for manufacturing with very little traffic . The tenant in this instance has a separate distribution facility where the majority of the trucking operations take place. The City is requiring that the project comply with the automobile parking, truck parking, truck loading, and maneuvering requirements of the current Comprehensive Zoning Ordinance . Because of their manufacturing line they plan on placing three (3) silos on one (1) of the two (2) required truck parking spaces . The tenant requires all of the building space for its manufacturing operation. Therefore, the building size I cannot be reduced. In addition, moving their operation to another City would be an extreme hardship because Bon Appetit' s operation depends on the proximity of its existing manufacturing plants to their I distribution warehouse at 4820 50th Street . Thus, the proposed use constitutes a special circumstance that is not generally applicable. b. The strict or literal interpretation or application of the applicable development and site planning standards would result in practical difficulties and unnecessary hardships that would conflict with the purposes of the Zoning Code. The lot' s space constraints make conforming to the truck parking requirements difficult without reconfiguring the proposed building foot print and parking lot, which would restrict Applicant from maximizing development of its lot merely because of the truck parking requirement. Denying this variance would 5 - create an undue hardship to the Applicant in that it would be deprived of the ability to fully develop its lot . Given that the new facility would be providing adequate parking and loading spaces to meet Bon Appetit' s actual need and Bon Appetit only needs one (1) truck parking space, mandating the truck parking requirement would constitute an unnecessary hardship that is inconsistent with the purposes of the Comprehensive Zoning Ordinance of the City of Vernon, which are to authorize development that does not create unreasonable impacts on neighboring properties . C . The grant of the variance will not constitute a grant of special privileges . Because of the unique size of the lot, the requirement to meet the City' s minimum code requirement for truck parking is overly burdensome and unnecessary. Sufficient automobile and truck parking will be provided to meet the needs and demands of the property and will continue to do so with the granting of this variance . As such, no special privilege is being granted by the approval of this variance. d. The project is consistent with the General Plan and complies with other applicable zoning provisions . The General Plan land use designation for the site is Industrial and its Zoning designation is also industrial . The use of the property as a Bon Appetit operation is consistent with general plan and will comply with all other applicable zoning provisions . e. A variance relieving the Applicant from Section 26 . 5 . 1-6 (d) of the Comprehensive Zoning Ordinance, minimum truck parking requirements, will not adversely affect the interest of the public or the interest of other residents and property owners within the vicinity of the premises, because this variance would allow the placement of - 6 - three (3) silos on one (1) of the two (2) required truck parking spaces with the understanding that upon any change in occupancy, or use of the property, the permanent structures/equipment (3 silos) shall be removed in order to provide the minimum number of truck parking spaces and ensure the parking goals of the Zoning Ordinance are met. The Applicant is providing ample truck parking and loading spaces for its tenant' s needs . Additionally, no safety issues are being introduced by this variance. f . The grant of the variance places suitable conditions on the lot to protect surrounding properties and does not permit uses that are not otherwise allowed in the I-Zone, Industrial. The use is consistent with the City' s Zoning Regulations which permits manufacturing uses in the I-Zone. The variance is conditioned upon compliance with the parking requirements of the Zoning Ordinance. This will assure that adequate on-site parking is maintained to minimize the possibility of on-street parking or staging occurring and will ensure that the impacts to the traveling public are minimized to a level of insignificance. SECTION 6 : In order to adequately protect the public health and general welfare the following conditions are required: a. The facility shall be operated in accordance with all current codes, rules, and regulations and subject to permit fees as adopted by the City of Vernon not otherwise addressed by this grant of a variance . b. The facility shall be operated in a manner that will prevent unsanitary conditions, odors or other nuisances . C . At all times, all parking areas shall be: (1) striped in a manner acceptable to the Director of Public Works, Water & Development Services; (2) paved with a concrete or asphalt concrete 7 - paving or other surface reasonably acceptable to the Director of Public Works, Water & Development Services; (3) adequately drained; and (4) kept free of potholes, dust, mud, trash and weeds . d. Adequate truck parking and loading shall be provided at the site such that no trucks accessing the site shall be required to stage in the public street or onsite other than at a loading dock or truck parking space. e . Servicing of vehicles, including but not limited to, washing, steam cleaning and repairing, shall not be permitted on the premises . No inoperative vehicles shall be stored on-site . f . Upon any change in occupancy, or use of the property, the permanent structures/equipment (3 silos) placed on the truck parking space shall be removed in order to provide the minimum number of truck parking spaces . g. The parking and loading areas shall be maintained substantially in compliance with the site plan as submitted as part of this variance application, except as otherwise approved in writing by the Director of Public Works, Water & Development Services . h. Noncompliance with any of the conditions herein shall constitute sufficient grounds for the City Council of the City of Vernon to revoke this variance and require the removal of the silos and installation of the truck parking stall, or take appropriate enforcement action, including citation and or fines for a violation. i . Not later than twenty (20) days from the date of approval of the variance, the Applicant and Owner shall indicate, in writing, its acceptance of and agreement with the conditions herein. The Variance shall be void and of no force or effect unless such written acceptance and agreement is submitted to the City within the 8 - twenty-day period. j . Applicant, owner, and any successors in interest shall indemnify, hold harmless and defend the City of Vernon, its officers, agents and employees from and against any and all claims, complaints or petitions for: (1) damages, losses, expenses resulting from bodily injury, sickness, disease, disability or death arising from the operation of the facility excluding therefrom any such claim resulting from the sole negligence or intentional wrongdoing of the City of Vernon, its officers, agents or employees; (2) a peremptory writ or other relief by way of injunction, mandamus, or administrative mandamus; and/or (3) legal expenses and attorney' s fees incurred by the City of Vernon on behalf of any party in such actions or proceedings . The City of Vernon does not waive its right to participate in the defense of any such action. - 9 - SECTION 7 : The City Clerk, or Deputy City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . I Name: Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian Byun, Depu City Attorney - 10 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) I �0 VE�� C L1POq A. ,O► N� 0Z 4305 Santa Fe Avenue City of Vernon Vernon,CA 90058 (323)583-8811 S�VELY iNOJ NOTICE OF PUBLIC HEARING The City Council of the City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall City Council Chambers 4305 Santa Fe Avenue Vernon,CA 90058 DATE & Tuesday,June 16,2015 at 9:00 a.m. TIME: (or as soon thereafter as the matter can be heard) APPLICANT: Core Investments,LLC REQUEST: Core Investments,LLC is requesting approval of a conditional use permit to construct and operate a commercial facility and a variance from Table 26.5.1-60) of the City's Zoning Ordinance, to allow the required curb-cut distance to be decreased to twenty- six (26)feet instead of the required forty-five(45)feet. The proposed Project is for a 2,950 square foot commercial building(office facility)comprised of one two-story building in the City of Vernon.The site is currently vacant and unpaved with no defined drainage pattern.A medical office previously occupied the site but was demolished several years ago. PROPERTY 5592 Santa Fe Avenue,Vernon,CA 90058 INVOLVED: REVIEW OF: The application, maps, and supporting information are available for THE FILE: public review during normal business hours in the Vernon Public Works,Water& Development Services Department, located at 4305 Santa Fe Avenue, Vernon, CA 90058, between the hours of 7:15 a.m. and 5:15 p.m. Monday through Thursday. PROPOSED Staff plans to recommend that the Vernon City Council determine that CEQA the proposal will not have a significant effect on the environment and is FINDING: exempt from the California Environmental Quality Act(CEQA).The conditions imposed on the conditional use permit are designed to protect the environment,public health, safety and general welfare. If you challenge the granting of the conditional use permit or any provisions thereof in court,you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: M,ria Ayala, City rk ReCE,IVED (. RECEIVED JUN 1 0 2015 � JUN 0 9 2015 ERK S�FICE �CGS,YELY,NOV54 CITYCL STAFF REPORT CITY ADMINISTRATION PUBLIC WORKS, WATER & DEVELOPMENT SERVICES DEPARTMENT DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson, Director of Public Works, Water and Development Services Department Originator: Sergio Canales,Assistant Planner RE: Approval of a Conditional Use Permit and Variance for Core Investments, LLC located at 5592 Santa Fe Avenue RECOMMENDATION A. Find that approval of the Conditional Use Permit and variance proposed in this staff report is exempt under the California Environmental Quality Act(CEQA) in accordance with Class 32, Section 15332, "In-Fill Development Projects,"because: (i)the Project is consistent with the City's General Plan and zoning regulations, (ii) the proposed development occurs within City limits on a project site of no more than five acres substantially surrounded by urban uses, (iii)the Project site has no value, as habitat for any endangered, rare or threatened species, (iv) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and(v)the site can be adequately served by all required utilities and public services. Therefore,the Project complies with the findings listed above and may be considered exempt from the California Environmental Quality Act under Section 15332 of the CEQA Implementation Guidelines; and B. Adopt a resolution approving a conditional use permit and variance to allow Core Investments, LLC to construct and operate a commercial facility, subject to the conditions of approval for the property located at 5592 Santa Fe Avenue. BACKGROUND Core Investments, LLC (the "Applicant") is a staffing agency that provides temporary and full- time staffing, training and consulting services. The Applicant has applied for a conditional use permit ("CUP") and a variance to construct and operate a commercial facility (Administrative Offices). The Applicant plans on constructing a two-story office building, approximately 2,950 square feet in size (first floor is approximately 1,668 sq. ft.; second floor is approximately 1,282 Page 1 of 9 sq. ft.) (the "Project"). The site is currently vacant and unpaved with no defined drainage pattern. A medical office previously occupied the site but was demolished several years ago. The Project is proposed to operate from 7:00 a.m. to 5:00 p.m. Monday through Friday, and 8:00 a.m. to 12:00 p.m. on Saturdays. Section 26.4.2-3(b) of the Comprehensive Zoning Ordinance of the City of Vernon(the "Zoning Code")would allow the proposed Commercial use in the Commercial (C) Overlay Zone of the I Zone, if a CUP is issued. Although the Applicant will be providing the necessary number of parking spaces, for the City to issue a CUP, a variance from Section 26.5.1-6 0)will be required to approve the curb-cut for a driveway (to be used exclusively by automobiles)which is less than the required minimum forty-five (45) feet from the curb return. The Applicant will be providing twenty-six(26) feet from the curb return, i.e., approximately nineteen(19) feet short of the requirement. Due to the size of the corner lot it is not possible to comply with the curb-cut requirement, unless a non-standard driveway is constructed and the proposed building foot-print and parking lot are reconfigured, which would restrict the Applicant from maximizing development of its lot merely because of the curb-cut requirement. Additionally, the City is requiring as part of the development of the lot that the curb radius be increased to the City's standard sixty(60) feet radius. The current radius size is twenty-two (22) feet, which if maintained would allow the driveway curb-cut to be in conformance with the zoning requirements. Staff recommends that a variance be issued. ZONING AND GENERAL PLAN CONSISTENCY The proposed Project will be consistent with the City of Vernon's Zoning Code. Except for the nonconforming curb-cut. Section 26.4.2-3(b) of the Zoning Code authorizes commercial uses in the Commercial (C) Overlay Zone of the I Zone with a CUP. The subject site is located in the Commercial (C) Overlay Zone of the I Zone, and the Applicant has applied for a CUP. Section 26.6.2-1 authorizes the City Council to authorize a variance if it makes the requisite findings. Recommended Parking Requirements For the City to issue the CUP, the Applicant must meet the development standards of the Zoning Code, including the parking, maneuvering, and loading requirements. At the time of the CUP application the City's Zoning Code did not establish the requisite parking for commercial uses. Instead, Section 26.5.1-6 of the City Code states: "If a use requires a CUP, the Director of Public Works, Water & Development Services shall recommend the minimum number of parking spaces and the minimum loading and maneuvering requirements for the requested use during the CUP process, based on the information and analysis provided as part of the CUP application process. The Director of Public Works, Water & Development Services shall notify the City Council of the recommendation. With the concurrence of the City Council, the Director of Public Works, Water & Development Services shall utilize the recommended minimum parking and loading and maneuvering requirements as the standard for that.and similar uses." The City in the past has used the ITE Parking Generation Manual for guidance when determining what parking standards should be established. Staff recommends that the CUP again include Page 2 of 9 conditions based upon these standards. Doing so would be consistent with the Director's administrative interpretation of section 26.5.1-6 that established the ITE Parking Generation Manual as the appropriate method for the Director to determine what parking requirements should apply. Number and Type of Required Automobile Parking Spaces Applying those standards,the calculation for the total number of required automobile spaces would be based,in part,on the type of use. The following are the recommended required parking ratios: Type of Use Proposed Proposed Project Required Auto Required Ratio Square Footage Parking Spaces Office Use 3 stalls per 1000 2,950 square feet 9 square feet Total Required 9 spaces Automobile Parking Spaces If this standard is used,based on the proposed Project size,the Applicant would be required to provide nine (9) automobile parking spaces. The Applicant will be providing nine (9) standard parking spaces. Number and Type of Required Truck Parking Spaces and Truck Loading Spaces As previously mentioned,the City's Zoning Code does not establish the requisite truck parking and loading for commercial uses. Staff proposes that office uses not be required to provide truck parking and loading for office uses. The Applicant has stated that it does not own or operate any trucks and that the only trucks accessing the site will be(US Postal Service,UPS &FedEx)once a day. General Plan Compliance The proposed Project will also be consistent with the City's General Plan upon the approval of the CUP and variance. In accordance with the City of Vernon General Plan, commercial uses are intended to serve industry uses and its employees and are considered an additional authorized land use within the City. Specifically,Policy LU-1.2 of the General Plan states: "Permit only those non-industrial uses, such as commercial and retail uses, which are necessary to support industry, and its employees or may be required by State Law. Limit such uses to the Commercial Overlay District, and permit only with a CUP." Thus, with the approval of a CUP and the variance, the proposed Project will be consistent with Policy LU-1.2 and the City's General Plan. Page 3 of 9 PROJECT The Project site is for a 2,950 square foot commercial building (office facility) comprised of one two- story building in the City of Vernon. The site is currently vacant and unpaved with no defined drainage pattern. A medical office previously occupied the site but was demolished several years ago. The Project site will be supported by a nine(9)stall surface parking lot. The Project site is expected to generate six (6) truck trips per week (UPS & FedEx trucks) and approximately sixteen (16) vehicle trips per day, including employee trips to and from the workplace, visitor trips, and miscellaneous employee trips throughout the day. One vehicle trip is comprised of one movement in and one movement out of the facility. Peak traffic hours for the streets in the vicinity occur in the early morning and late afternoon. The traffic operations in the area will not be significantly adversely affected by traffic volumes generated by the proposed project. Motorists using the surrounding street system will not experience major changes in traffic operations due the traffic generated by the proposed development. One driveway will be provided along 56th Street. 56th Street is of adequate size and pavement type to handle the traffic generated from the proposed operation. UPS type trucks and automobiles accessing the site will share the driveway along 561h Street. CEQA DETERMINATION AND ENVIRONMENTAL CONSIDERATIONS The proposed Project is in the Commercial (C) Overlay Zone of the I Zone. The uses in the surrounding and adjacent properties include retail, commercial, warehouse, residential, and general industrial uses and are compatible with the proposed operation. No significant adverse impacts from traffic,parking,noise, odor,dust, smoke, light or glare, or risk of fire, infection or explosion are expected to occur to the adjacent or abutting properties. The Project is exempt under the California Environmental Quality Act(CEQA) in accordance with Class 32, Section 15332, "In-Fill Development Projects", because: (i)the project is consistent with the City's General Plan and zoning regulations, (ii)the proposed development occurs within City limits on a Project site of no more than five acres substantially surrounded by urban uses, (iii)the Project site has no value, as habitat for any endangered,rare or threatened species, (iv) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and(v)the site can be adequately served by all required utilities and public services. STATE OR FEDERAL CONDITIONS All Federal, State, and local regulatory permits shall be obtained as required for the operation of the facility. STAFF FINDINGS AND CONDITIONS Staff recommends that the CUP and variance be granted only if the following findings are made, as required by Section 26.6.3-4 and Section 26.6.2-5 of the Vernon Zoning Code. Staff concludes that the following findings can be made,and recommends that they be made in the following manner: Page 4 of 9 FINDINGS (Conditional Use Permit) a) The lot for the proposed use is adequate in size, shape, and topography, including any required drainage and landscaping because (i) the Project will provide the correct number of parking spaces on site; (ii)the issuance of the variance to allow the required curb-cut distance to be decreased to twenty-six (26) feet instead of the required forty-five (45) feet will not negatively affect accessibility to the site; (iii)the conditions imposed will ensure that the site is developed appropriately for its size, shape and topography; (iv) all components of a standard development project are included, such as a trash bin in an accessible location, and proper frontage and accessibility to nearby streets for the proposed use; and(v)the site will be constructed to ensure the drainage and landscaping conform to the Vernon Municipal Code. b) The proposed use will not adversely affect the interest of the public or the interests of other residents and property owners in the vicinity of the Project because (i)the Project site is surrounded by industrial, warehousing, retail and commercial uses compatible with the proposed use; (ii)the last use at the site was as a medical office; (iii)the conditions on the Project ensure that use will not adversely affect the interest of the public or the interests of other residents and property owners in the vicinity; (iv)the site is adequately serviced by nearby streets that have sufficient capacity; (v)the Project will not create any significant environmental effects. c) The proposed use will be compatible with the permitted uses of surrounding and adjacent properties because (i) commercial uses may be permitted in the Commercial (C) Overlay Zone of the I Zone of the City with a CUP; and(ii) all required parking is provided on- site; and (iii)the conditions ensure that there will not be negative impacts on adjacent properties. d) The lot has adequate off-street parking facilities for this proposed use, as the Project site will be supported by a nine (9) stall surface parking lot. Therefore, the proposed parking layout will not create an impact on neighboring properties. The site parking areas will be paved with an impermeable surface that meets City of Vernon applicable development standards. e) The use as to location, operation and design, is consistent with the City's Zoning Code and General Plan with the conditions imposed, including the City's policy considerations as to acceptable uses in the City, because office uses that support industry are lawful in the City, and because Section 26.4.2-3(b) of the Zoning Code permits commercial uses in the Commercial (C) Overlay Zone of the I Zone with the approval of a CUP. f) The proposed use is consistent with all applicable local, county, state and federal laws, rules and regulations because the conditions will ensure that there cannot be any significant impact on neighboring properties, and because no law prevents the proposed use of the property. g) The proposed use will not adversely affect the general welfare as a result of noise, increased traffic, interference with the flow of traffic, dust, or other undesirable characteristics because (i) only six(6)truck trips per week(UPS &FedEx trucks) and approximately sixteen (16)vehicle trips per day, including employee trips to and from the workplace, visitor trips, and miscellaneous employee trips throughout the day will be generated by the Project and this number of trips is insufficient to constitute an adverse impact; (ii)the Project has access to Santa Page 5 of 9 Fe Avenue, 56th Street and traffic will generally travel on Santa Fe Avenue to 56th Street to the commercial facility; Santa Fe Avenue and 56th Street are of adequate size and pavement type to handle the traffic generated from the proposed operation; (iii)the traffic operations in the area will not be adversely affected by the normal increase in traffic volumes generated by the Project; (iv) conditions are imposed to ensure the Project does not cause excess noise or impede traffic flow; and (v)the proposed office use will not create dust or impacts that would be undesirable in a largely industrial community. h) All of the conditions imposed on the Project are necessary to protect the public health, safety and general welfare because the conditions are limited in nature, and ensure that the property is used in the manner promised by the applicant. FINDINGS (Variance) a) The intended use of the lot constitutes a special circumstance or condition that does not apply generally to other properties in the same overlay zone. Unlike other uses in the City, the proposed lot will be used exclusively for an office building with very little traffic. The City is requiring that the existing curb return be enlarged. Due to the size of the corner lot it is not possible to comply with the curb-cut requirement, unless a non-standard driveway is constructed and the proposed building foot print and parking lot are reconfigured, which would restrict the Applicant from maximizing development of its lot merely because of the curb-cut requirement. Thus, the proposed use constitutes a special circumstance that is not generally applicable. b) The strict or literal interpretation or application of the applicable development and site planning standards would result in practical difficulties and unnecessary hardships that would conflict with the purposes of the Zoning Code and would deprive the Applicant privileges granted to others in similar circumstances. The lot's space constraints make conforming to parking and maneuvering requirements difficult. The City is requiring the curb return to be enlarged as part of the development. The Zoning Code also establishes a minimum width of driveway. Due to the shape of the lot being only one hundred and thirty-five (135) feet deep, in order to reasonably develop the lot the driveway curb-cut must be placed in a closer proximity to the curb return then the Zoning Code prescribes. Denying this variance would create an undue hardship to the Applicant because it would be deprived of the ability to fully develop its lot. Given that the new facility only needs automobile parking, mandating the curb-cut requirement would constitute an unnecessary hardship that is inconsistent with the purposes of the Zoning Code, which are to authorize development that does not create unreasonable impacts on neighboring properties. c) The grant of the variance will not constitute a grant of special privileges. Because of the unique size of the corner lot,the requirement to meet the City's minimum code requirement for driveway curb-cuts is overly burdensome and unnecessary. Sufficient automobile parking will be provided to meet the needs and demands of the property and will continue to do so with the granting of this variance. Adequate site distances are being provided along 56th Street which has low traffic volumes, as such,no special privilege is being granted by the approval of this variance. d) The Project is consistent with the General Plan and the Zoning Code. Goal LU-1 of the General Plan is to promote and maintain manufacturing uses within the City of Vernon. The Page 6 of 9 proposed use is consistent with General Plan Policy LU-1.1, the use is within a zone that authorizes the use with the issuance of a CUP, and consistent with General Plan Policy LU-1.3, the office use will support basic industrial activities in the area. As long as the Applicant complies with the conditions of approval,both the variance and the overall Project will be consistent with the objectives of the Zoning Code and the General Plan. e) A variance relieving Applicant from Section 26.5.1-60) of the Zoning Code, Development Standards (curb cut)will not adversely affect the interest of the public or the interest of other residents and property owners within the vicinity of the premises, because this variance would allow driveway access and ensure the parking goals of the Zoning Code are met. Adequate site distances are being provided and 56th Street has very low volumes of traffic, therefore, no safety issues are being introduced by this variance. f) The grant of the variance places suitable conditions on the lot to protect surrounding properties and does not permit uses that are not otherwise allowed in the I Zone, Industrial. The use is consistent with the City's Zoning Code which permits commercial uses in the I Zone. The variance is conditioned upon compliance with the parking requirements of the Zoning Code. This will assure that adequate on-site parking is maintained to minimize the possibility of on-street parking or staging occurring and will ensure that the impacts to the traveling public are minimized to a level of insignificance. CONDITIONS It is recommended that the following conditions be set on the permit. These conditions are deemed necessary to protect the public health, safety and general welfare: a. The facility shall be operated in accordance with all current codes, rules, and regulations and subject to fees as adopted by the City of Vernon not otherwise addressed by this grant of a CUP. b. The facility shall be used for general office use purposes only (no medical offices) and no retail sales shall be permitted at this location. C. The facility shall be operated in a manner that will prevent unsanitary conditions, odors or other nuisances. d. At all times, all parking areas shall be: (1) striped in a manner acceptable to the Director of Public Works, Water& Development Services; (2)paved with a concrete or asphalt concrete paving or other surface reasonably acceptable to the Director of Public Works, Water& Development Services; (3) adequately drained; and(4)kept free of potholes, dust,mud,trash and weeds. e. Servicing of vehicles, including but not limited to,washing, steam cleaning and repairing, shall not be permitted on the premises. No inoperative vehicles shall be stored on-site. f. The parking area shall be maintained substantially in compliance with the site plan as submitted as part of this CUP application, except as otherwise approved in writing by the Director of Public Works, Water& Development Services. Vehicle may be parked on the property only within the designated parking spaces. Page 7 of 9 g. The maximum size truck servicing the site shall be twenty-five (25) feet in length. h. Prior to occupancy,the Applicant shall deed to the City property for the enlargement of the curb return at the northeast corner of Santa Fe Avenue and 56th Street to a 60' foot radius and a 52' foot property line radius. In addition,the Applicant shall,prior to occupancy, complete the following construction to enlarge the radius: (i) The curb, gutter, sidewalk and necessary roadway at the intersection of Santa Fe Avenue and 56th Street shall be removed and replaced in accordance with the Master Plan of City Streets; (ii)A curb ramp shall be constructed as part of the curb ramp improvement; (iii)Any objects including but not limited to trees,power poles, traffic signals, signs and fire hydrants, that conflict with proposed improvements shall be removed or relocated by the Applicant at their expense; and(iv) Street striping shall be removed and replaced in accordance with the street improvements. Applicant shall complete all subject work in accordance with City Standards, and to the satisfaction of the Director of Public Works, Water& Development Services. i. The Applicant shall maintain property in such a way as to not directly cause or contribute to National Pollutant Discharge Elimination System permit(Stormwater Permit) violation. j. Owner/operator shall inspect and maintain(as recommended by L.I.D manufacturer or industry standard) all onsite stormwater post construction structural Local Impact Development (L.I.D)to ensure proper and effective operation of the L.I.Ds. k. Owner/operator shall maintain a proper inspection and maintenance ("I& M") log for all onsite stormwater post construction structural L.I.Ds. The I& M Log shall be maintained current with activity details for the previous three (3) years and made available to City of Vernon representatives upon request. 1. Noncompliance with any of the conditions herein shall constitute sufficient grounds for the City Council of the City of Vernon to revoke this CUP, or take appropriate enforcement action, including citation and or fines for a violation. in. Not later than twenty (20) days from the date of approval of the CUP,the Applicant and Owner shall indicate, in writing, its acceptance of and agreement with the conditions herein. The CUP and Variance shall be void and of no force or effect unless such written acceptance and agreement is submitted to the City within the twenty (20) day period. n. Applicant, Owner, and any successors in interest shall indemnify, hold harmless and defend the City of Vernon, its officers, agents and employees from and against any and all claims, complaints or petitions for: (1) damages, losses, expenses resulting from bodily injury, sickness, disease, disability or death arising from the operation of the facility excluding therefrom any such claim resulting from the sole negligence or intentional wrongdoing of the City of Vernon, its officers, agents or employees; (2) a peremptory writ or other relief by way of injunction,mandamus, or administrative mandamus; and/or(3) legal expenses and attorney's fees incurred by the City of Vernon on behalf of any party in such actions or proceedings. The City of Vernon does not waive its right to participate in the defense of any such action. Page 8 of 9 Attachment(s) 1. CUP Application and Supporting information 2. Proposed Resolution I I i i Page 9 of 9 P 'E' rcia OF V E 6'rof1. 1 1 Use Only D -!!,Xtc6wift!Nb.t.011.1041.410280 0, Vernon,Department of Community Services Ly Is 4305 Santa Fe Avenue,Vernon, CA 90058 Phone (323) 583-8811 Fax (323) 826-1435 `L�U RMIT AP T110 — - � -� CATION QNA T-SE: E PLEASE PRINT OR TYPE SECTION I -Project Information. Project Title: SOUVILf-, 5+15 laq Project Site Address:-5'519 a SG -�7-e \)e4'-AQV1 A q ou�Q) Assessor Parcel Number (APN):(n309 OCR-SOOJ3 Zoning Designation: Purpose of Conditional Use Permit Application: RAO\A T T LJ SECTION 2-Applicant Information. I hereby certify that all the information contained herein and in the accompanying exhibits are true and correct to the best of my knowledge and belief. Applicant: (Applicant shall either he the Property Owner or Owner's Representative) Applicant Name: �� , L.L. - t— - 0 Sole Proprietor 11 Partnership gCorporation Contact Name: "'to 'O 6n ck Contact Address: 9,�- 604 t';I'o 5 City:!FyAtAc�tq Zip Code: Phone: ��tA to Fax: aklb'f E-mail:,Mtoy�i A tvtv,(er�Wie&m-0-w iS C,o, Llf�bl�!! C s i I M"79 Loa ARPM (Two officer's signatures are required for Corporation and Limited Liability Companies(LLQ) Print Name: A Title: ' kwfi � - Date: /0 2-. 1 Signature (Applicant signatures must be notarized): Print Name: � 4 G Title:y1,tc$ ikG YDate: C. i�Zur cf Signature (Applicant signatures must be notarized): _ - SECTION 3 - Contact Information (if different from applicant). Name: C � +Ck -Company Name: <- 4' �Av ' Address: l a City Zip Code: a iq Phone. Z0 . j t q - 1 k _ ' �,��G �~� ��'�} Fax: Relation to Applicant: ❑Engineer ❑Architect ❑Attorney []Realtor Nkepresentative SECTION 4-Property Owner Information. I am the property owner of record, of the property, which is the subject of this application. I have reviewed this application and authorize/approve of the action requested. Property Owner Name: &Vt k-�,I L LQ-, ❑Sole Proprietor ❑Partnership *Corporation Address: _ e0 4y-, Z __ City:�fulte* V) Zip Code: Ci Phone: Fax: 31�-co q_- 1��„2. )(YES, I hereby certify that the above named applicant is authorized to act as the property owner representative for this conditional use pen-nit application. ❑ NO, I DON'T certify that the above named applicant is authorized to act as the property owner representative for this conditional use permit application. (Two officer's signatures are required for Corporation and Limited Liability Companies(LLQ) Print Name: iA0V'fa �C►,VT' a Title: )_Date: /a 2 Signature (Applicant signatures must be notarized):0. G� ] Print Name: _A.N)Y it, Qj&M CL Title: ��r et", �i'Date: t c 19 l vti� Signature (Applicant signatures must be notarized): (i !ice VYI.4� 1. Site size (Lot size). �D42, t t4S9. r IV 2. Square footage of building(s) on the premises (including any covered structures or canopies). ,q�0 3. Number of floors of construction. tw 0 4. Amount of off-street parking and loading provided: a. Number of automobile parking spaces b. Number of truck parking spaces . c. Number of truck loading spaces 5. Proposed scheduling. h) -F -7 4-w• �o -. - 1 Z p, 6. Associated projects (additional projects). Aj �J'a= 7. Anticipated incremental development (additional phases). A- 10 8. If retail or commercial, indicate the type, whether neighborhood, city or regionally oriented, square footage of sales area, and loading facilities (on attached sheet). ca rAc-,e- vv- o� 9. If industrial, indicate type, estimated employment per shift, and loading facilities (on attached sheet)._ 5�e A,CI`ac4e.6 BURDEN OF PROOF The applicant is required to establish the following before submitting a Conditional Use Permit application: (Attach additional sheets if necessary.) A) The site for the proposed use is adequate in size, shape and topography, including drainage and landscaping. B) The proposed use will not have an adverse effect upon adjacent or abutting properties in terns of traffic, parking noise, odors, and dust, smoke, light or glare, or risk of fire, infection or explosion. C) The proposed use will be compatible with the pennitted uses of surrounding and adjacent properties. ® � f D) The site has sufficient access to streets and highways, which are adequate in width and pavement type to cant'the quantity of traffic generated by the proposed use, and that the routes which vehicles will have to follow to reach the site are adequate in width and pavement type to carry the volume of traffic generated by the proposed use. 00 E) The site has adequate off-street parking and loading facilities. F) The use, as to location, operation and design, is consistent with the general plan, any applicable specific plan and the zoning regulations of the City of Vernon and all applicable County, State and federal law, rules and regulationsp.@/y pF C i.ti e e-. Signed ( plicant) r PROPERTY OWNERS LIST STATEMENT The undersigned has duly prepared the attached "Property Owners List". The list includes all of the names, and respective addresses, of persons being owners of property any part of which is within 300 feet of the outer boundaries of the subject property. This information is to be obtained from the latest available Los Angeles County Tax Assessment Roll. This list was prepared on i ca from the Tax Roll maintained at /l0 Jr &t 13,141-6 AL ��`� �®�` ��J �2-U (Name and Location of office) It is understood that the accuracy and completeness of this list is the responsibility of the applicant. Signed: - rson who prepared list) On this day of 01 20ZV- , before me the undersigned, a Notary Public in and for said County and State personally appeared known to me, or proven to me to be the person that exec ed e thin i ment. LINDA MARTINEZ Comgft*n#E 19M?3 WIVY PUIIC-C WI SS my hang and official seal In Co" JCn f2018 Notary Public in and for said County and State My commission expires:ho i�)_ ao Signed: f ( pplicant) 49, Date Filed: General Information: 1. Name and address of developer or project sponsor: 1r� 2. Address of project(location): S�' � q 00592 Assessor's Block and Lot Number(APN#): 0q—(0.S- W1?) 3. Name, address, and telephone number of person to be contacted concerning this project: ¢a. .Q oX 7. 9 S 4. Indicate number of the permit application r the project to which this form pertains: f _ T f 5. List and describe any other related permits and other public approvals required for thisoject, including_those required by city, regional, state and federal agencies:_ 6. Existing zoning district: 4��. CIO M��`,�`a Q, d Ve4- 7. Proposed use of site (Project for which this form is filed): G�i� rt e-GN A,YCeS `V j JP i e_WI Ck. Y D Project Description: 8. Site Size (Lot Size): 9. Square footage of Building(s): I fo 59 10. Number of floors of construction: `l W 0 11. Amount of off-street parking provided: 12. Attach plans: ye/S 13. Proposed scheduling: A 14. Associated projects: N 15. Anticipated incremental development: 16. If retail or commercial, indicate the type, whether neighboring, city o regionally oriented, square footage of sales area, and loading facilities. lopii. 17. If industrial, indica e type, estimated employment per shift, and loading facilities._ 18. If the project involves a variance, conditional use permit application, state this and indicate clearly why the application is required.(04-P,A-LaS C9 r s, D-f" W yi�►C Environmental Impacts: Are any of the following items applicable to the project or its effects?Discuss below all items checked "yes" (attach additional sheets as necessary). YES NO ❑ G 19. Change in pattern, scale or character of general area of project. ❑ 20. Significant amounts of solid waste or litter. ❑ 21. Change in dust, ash, smoke, fumes or odors in vicinity. ❑ E)� 22. Substantial change in existing noise or vibration levels in the vicinity. ❑ [A 23. Site on filled land or on slope of 10%percent or more. ❑ C 24. Use of disposal of potentially hazardous materials, such as toxic substances, flammables or explosives. ❑ 25. Substantial change in demand for municipal services (police, fire, water, sewage, etc.) ❑ 26. Substantially increase fossil fuel consumption(electricity, oil, natural gas, etc.) ❑ Ck 27. Relationship to a larger project or series of projects. Environmental Setting: 28. On an attached sheet, describe the project site as it exists before the project, including information on topography, soil stability,plants and animals, and any cultural, historic or scenic aspects. Describe any existing structures on the site, and the use of the structures. Attach photographs of the site. Snapshots or Polaroid photos will be acceptable. 29. On an attached sheet, describe the surrounding properties, including information on plants and animals and any cultural, historical or scenic aspects. Indicate the type of land use (residential, commercial, etc.), and scale of development (height, frontage, set-back, rear yard, etc.). Attach photographs of the vicinity. Snapshots or Polaroid photos will be acceptable. Certification: I I hereby certify that the statements furnished above and in the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. .12 d:/ (Sign l6ate Environmental Settings Q.#28 of CUP 5592 Santa Fe Ave. Vernon California 90058 / October 28, 2014 The existing site is an empty lot (no building)with poorly maintained I eaver.The Parcels topography is flat with a slight grade east. No impact to plants, animals, cultural, historic or scenic aspects.. Luis Niebla, Core Investments 5592 S Santa Fe Ave - Google Maps Page 1 of 1 mw 'm 1 F https://www.google.com/maps/@3 3.9921082,-118.23 02692,3 a,37.5y,87.37h,83.46t/data•=.... 11/11/2014 5592 S Santa Fe Ave- Google Maps Page 1 of 1 2. Vk nor Aw _. y _ IL ,!- Image G3p'oe,..0 2W, 2014 Fc-.o1e https://www.google.com/maps/@33.9920208,-118.229975,3a,90y,75.7lt/data=!3m4!lel!... 11/11/2014 Environmental Settings Q.#29 of CUP 5592 Santa Fe Ave. Vernon California 90058 October 28, 2014 The following is a description of surrounding properties North of property, Bungalow warehouse building approx 14ft high, build up to side walk, no set back approx . 9200 Sq ft. (see attached photo) East of property, Bungalow building approx 18ft High, 5ft set back on 56th street approx. 4800 sq ft (see attached photo) South of property, vacant approx 900 sgft building approx 12ft high, build up to side walk, no set back approx. 900 Sq ft. (see attached photo) West of building, concrete tilt up approx 28 ft high approx 50ft set back. Approx 32000 Sq ft (see attached photo) No noticeable information of plants,animals, cultural, historic or scenic aspects noted. � f Luis Niebla, Core Investments 5592 S Santa Fe Ave - Google Maps Page 1 of f A, Owl ss 9.2474cM1t https://www.google.com/maps/@33.9921981,-118.2302705,3a,75y,87.37h,83.46t/data=!... 11/11/2014 5592 S Santa Fe Ave - Google Maps Page;�of 17 6596 S Santo Fe Ave '"`� - Ve,nron,caLfrrnia �� - � r t • 1�a7 'te ■� '. ti c, $ 1l(pj�Jt qr ittlltr b �, t - i� �i[.wi ti�!v x�ti... ,t� ,t +i• I� ��l11�[ .;:� �trrilf�j s � W ..x a� �,. ,� . • `.�ril� i��d�rl lI r , firly- — uW y r _ ' t ImagE c�piure'9F�2Ce1 12014 https://www.google.com/maps/@33.9921082,-118.2302692,3 a,90y,269.96h,65.63t/data=... 11/11/2014 5592 S Santa Fe Ave - Google Maps Paged of Munt;nilton Park,California ` a� F `v t _ F' - - . r 5 ' P https://www.google.com/maps/@3 3.9919872,-118.2296724,3 a,75y,3 5 8.03h,74.17t/data=... 11/11/2014 5592 S Santa Fe Ave - Google Maps Page 4of b k * A} -t Aol—i w Inzgn copes^�5cr^rld �201<;�co;:ie https://www.google.com/maps/@3 3.9921082,-118.23 02692,3 a,3 Oy,129.12h,88.09t/data=... 11/11/2014 5592 S Santa Fe Ave - Google Maps Page of � - Se ff MEN r ` a{. 7 ketJ https://www.google-com/maps/@33.9920189,-118.2302027,3a,90y,l 84.7h,69.61 t/data=!... 11/11/2014 5592 S Santa Fe Ave- Google Maps Page ,of 2. e .., " 2ILI ` ` r .60 �1r, P } i S in,d9'=C yUE 9rp 20141 a 291 L%OO:q'e https://www.google-com/maps/@33.9920184,-118.2302678,3a,15y,83.98h,86.83t/data=!... 11/11/2014 Operations Report 5592 Santa Fe Ave. Vernon California 90058 October 28, 2014 The following is a detailed description of our daily operations based on other similar sites, each office operates as per the demands and needs of our client base. Our function is general office use,we provide human resource functions for local business. Structure and execute Job fairs for clients off- site,screening, interviewing, assessing personnel for client. Plan and Implement specific training personnel and employee safety programs based on clients needs.We have staff available to answer H R questions for clients and employees during regular business hours (i.e. wage garnishment, child support,workers comp. issues,vacation,OT pay,and holiday pay.) Our Human resource function includes hiring, reprimanding, and re assigning employees. A representative from local business(client)will pick up payroll checks. Any employee certification required by client may also be done in our office(i.e.food handler's certification) Hours of operation: M-F lam to 6 pm Sat 8am-12pm. One shift, 4-6 employees on site. We have inter- office correspondence as well as U.S. Postal Service, U.P.S., FedEx, and similar document and general office supply delivery. L Niebla, Core Investments I Traffic Report 5592 Santa Fe Ave. Vernon California 90058 October 28, 2014 Day No. Emp. Trips Clients Trips Deliveries Trips Total Trips Monday 4 4 12 12 1 1 17* Tuesday 4 - 4 6 6 1 1 11* Wednesday 4 4 6 6 1 1 11* Thursday 4 4 ..6 . 6 Friday 4 4 12 12 1 1 17* Saturday. 4 4 .6 6 1 1 11* Weekly Total 24 48 6 78* *One vehicle trip is comprised of one movement in and one movement out of the facility,. Luis Niebla, Core Investments Hazardous Material Report 5592 Santa Fe Ave.Vernon California 90058 October 28, 2014 To whom it may concern; This location will use and store common window and office cleaning agents. In quantities adequate to maintain a clean working office environment for the size of building. 7 Luis Niebla, Core Investments 0. p, 0 z o a 0 �r SD 0_. 0 z w �p R Q. C)Tj CD CL (a 0 CD w N) co :0 ro co(P. M 6 mm 41 C') 0 CID CD en co cn > zNm m OR m '3 m M > 0 0 0 z c m z OOO m 0 m Z A N 0C) m M 'M M)FZ icn< cvo 0:c M 52 C�ll z M 9: mz C) C: x m>z z m F 00 0>--1 m m 2 x C: Cni 0 m > ZT > 1> 0 12 C+ rD ns. -1� ED I- ---------- 3,-,)" CD II J CD ID 0 0 VA -0, AFFIDAVIT OF MAILING STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF VERNON ) I, Sergio Canales,Assistant Planner of the City of Vernon, do hereby certify that on Wednesday, June 3, 2015, mailed a copy of Notice of Public Hearing, to be held on June 16, 2015, regarding a Conditional Use Permit for Core Investments, LLC located at 5592 Santa Fe Avenue, to_the interested parties and agencies on the attached list,by United States Mail with postage. Date: Sergio angles, Assistant Planner 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 the document. State of California ) ss County of Los Angeles ) On j�ne-- 3, ,7V. before me, �Ce'f / ��'C Cn �� , notary public, personally appeared Sergio Canales who proved to me on the asis of satisfactory evidence to be the persons)whose name(s)is/afe subscribed to the within instrument and acknowledged to me that he/she/the executed the same in hiss/ authorized capacity{), and that by his/'�� signatures)on the instrument the person(-s), or the entity upon behalf of which the person(s)acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. MARISOL TRWILLO ComnMasion#E 2093319 Notary Public-California z e Los Angeles County Signature My Comm.Expires Dec 23,2018 k-gnatureGf Notary Public ` OF V '7�pPy O� G� 4305 Santa Fe Avenue City of Vernon Vernon,CA 90058 (323)583-8811 s�VELY iN9J s NOTICE OF PUBLIC HEARING The City Council of the City of Vernon will conduct a Public Hearing, which you may attend. PLACE: Vernon City Hall City Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 DATE & Tuesday,June 16,2015 at 9:00 a.m. TIME: (or as soon thereafter as the matter can be heard) APPLICANT: Core Investments,LLC REQUEST: Core Investments,LLC is requesting approval of a conditional use permit to construct and operate a commercial facility and a variance from Table 26.5.1-60)of the City's Zoning Ordinance, to allow the required curb-cut distance to be decreased to twenty- six (26)feet instead of the required forty-five(45)feet.The proposed Project is for a 2,950 square foot commercial building(office facility)comprised of one two-story building in the City of Vernon.The site is currently vacant and unpaved with no defined drainage pattern.A medical office previously occupied the site but was demolished several years ago. PROPERTY 5592 Santa Fe Avenue,Vernon,CA 90058 INVOLVED: REVIEW OF: The application, maps, and supporting information are available for THE FILE: public review during normal business hours in the Vernon Public Works, Water& Development Services Department,located at 4305 Santa Fe Avenue, Vernon,CA 90058,between the hours of 7:15 a.m. and 5:15 p.m. Monday through Thursday. PROPOSED Staff plans to recommend that the Vernon City Council determine that CEQA the proposal will not have a significant effect on the environment and is FINDING: exempt from the California Environmental Quality Act(CEQA).The conditions imposed on the conditional use permit are designed to protect the environment,public health, safety and general welfare. If you challenge the granting of the conditional use permit or any provisions thereof in court,you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: M 'a Ayala, City rk 300' Radius-Public Notification Boundary February 27,2015 APN 6309-006-012 Page 1 of 2 5600 Santa Fe Ave. JN 15042 Vernon CA 90058 6309-006-012 1 6309-006-011 3 Core Investments Llc 6309-005-008 2 Craig Welding Supply Co P.O. Box 1122 Same As Key#1 5670 S Santa Fe Fullerton CA 92836 Los Angeles CA 90058 6309-006-009 5 6309-006-010 4 Steven M&Karen D Craig 6309-006-008 6 Same As Key#3 5670 S Santa Fe Same As Key#5 Los Angeles CA 90058 6309-006-007 7 6309-006-025 8 6309-006-013 9 2417 E 57th Llc Silvia Aruayo Martin Ruiz 5508 S Santa Fe 4230 Green River#101 11018 S Truro Vernon CA 90058 Corona CA 92880 Inglewood CA 90304 6309-006-021 11 6309-006-022 12 6309-006-014 10 Gary S Coyne Co Tr Kun H Song Same As Key#9 740 Garfield 1461 S Runyan South Pasadena CA 91030 La Habra CA 90631 6309-005-009 13 6309-005-010 14 6309-005-011 15 Marvin M & Genevieve W Chesebro 5508 South Santa Fe Llc Silvia Sandoval 190 N Canon #304 5508 S Santa Fe 5500 S Santa Fe Beverly Hills CA 90210 Vernon CA 90058 Vernon CA 90058 6309-005-012 16 Hhm Properties Llc 6309-005-013 17 6309-005-014 18 2424 E 55th Same As Key#16 Same As Key#16 Los Angeles CA 90058 6309-005-015 19 6309-005-016 20 Edward W Lynch Co Tr Steve Mansueto 6309-005-028 21 2428 E 54th 838 N Las Palmas Same As Key#16 Los Angeles CA 90058 Los Angeles CA 90038 6309-005-021 22 Yukiko E Barbod 6309-005-005 23 6309-005-027 24 7000 La Presa Same As Key#22 Same As Key#16 San Gabriel CA 91775 6308-017-043 26 6308-017-013 27 6309-005-026 25 HUH International Property Lp Natalie Fisher Same As Key#16 5525 S Santa Fe 9157 Airdrome Vernon CA 90058 Los Angeles CA 90035 6308-017-011 28 6308-019-017 30 Charlotte Heller 6308-017-012 29 Jetro Management And Development 9157 Airdrome Same As Key#27 Corp Los Angeles CA 90035 15-24 132nd College Point Ny 11356 6309-007-011 31 6309-007-016 32 6309-006-026 33 Peter D Bacci Happy Acquisitions Llc Zamindari Tr 500 Citadel#140 1340 E 6th 4230 Green River#101 Los Angeles CA 90040 Los Angeles CA 90021 Corona CA 92880 i 300' Radius-Public Notification Boundary February 27,2015 APN 6309-005-008 Page 1 of 2 5592 Santa Fe Ave. JN 15041 -MAM Vernon CA 90058 6309-005-008 1 6309-006-011 3 Core Investments Llc 6309-006-012 2 Craig Welding Supply Co P.O. Box 1122 Same As Key#1 5670 S Santa Fe Fullerton Ca 92836 Los Angeles Ca 90058 6309-006-009 5 6309-006-010 4 Steven M&Karen D Craig 6309-006-008 6 Same As Key#3 5670 S Santa Fe Same As Key#5 Los Angeles Ca 90058 6309-006-007 7 6309-006-025 8 6309-006-013 9 2417 E 57th Llc Silvia Aruayo Martinruiz 5508 S Santa Fe 4230 Green River#101 11018 S Truro Vernon Ca 90058 Corona Ca 92880 Inglewood Ca 90304 6309-006-019 11 6309-006-020 12 6309-006-014 10 Kathleen M Vincent Costantino Properties Llc Same As Key#9 2451 E 57th 9331 Daines Los Angeles Ca 90058 Temple City Ca 91780 6309-005-009 13 6309-005-010 14 6309-005-011 15 Marvin M& Genevieve W Chesebro 5508 South Santa Fe Llc Silvia Sandoval 190 N Canon#304 5508 S Santa Fe 5500 S Santa Fe Beverly Hills Ca 90210 Vernon Ca 90058 Vernon Ca 90058 6309-005-012 16 HHM Properties Llc 6309-005-013 17 6309-005-014 18 2424 E 55th Same As Key#16 Same As Key#16 Los Angeles Ca 90058 6309-005-015 19 6309-005-016 20 6309-005-018 21 Edward W Lynch Co Tr Steve Mansueto Therm-X Chemical And Oil Co 2428 E 54th 838 N Las Palmas 2454 E 55th Los Angeles Ca 90058 Los Angeles Ca 90038 Los Angeles Ca 90058 6309-005-021 22 Yukiko E Barbod 6309-005-005 23 6309-005-027 24 7000 La Presa Same As Key#22 Same As Key 416 San Gabriel Ca 91775 6308-017-043 26 6308-017-013 27 6309-005-026 25 HUH International Property LP Natalie Fisher Same As Key#16 5525 S Santa Fe 9157 Airdrome Vernon Ca 90058 Los Angeles Ca 90035 6308-017-011 28 6309-004-009 30 Charlotte Heller 6308-017-012 29 Robert& Marie Bouse 9157 Airdrome Same As Key#27 1127 N Ridgeline Los Angeles Ca 90035 Orange Ca 92869 6309-004-008 31 6309-004-007 32 6308-016-032 33 Roberto Romo Dennis Caffrey Sylvester Feichtinger 13642 Arlee 2425 E 55th 365 Trousdale Norwalk Ca 90650 Los Angeles Ca 90058 Beverly Hills Ca 90210 0919/09 G9®riaany oaAP algiledwoo ww Zq x ww gZ lPwiol ap 91190il3 0919/0915®AJ@AV ql!m algiledwoo„g/5 Z x„G azis Iogel ' r City of Huntington Park Lucille Roybal-Allard John Kinas Planning Department Congresswoman United States Aluminum 6550 Miles Avenue 500 Citadel Drive, Ste 320 3663 Bandini Boulevard Huntington Park,CA 90255 Commerce, CA 90040 Vernon,CA 90023 L.A. County Board of Supervisors Director of Planning Gloria Molina Ms. Gutierrez James Herd—Room 1390 Board of Supervisors 924 S.Mott Street 320 W.Temple Street 500 W.Temple St.,Ste 856 Los Angeles,CA 90023 Los Angeles,CA 90012 Los Angeles,CA 90012 South Coast Air Quality Mgint City of Long Beach James H.Hillands District(AQMD) Office of the City Manager Heger Realty Corp. 21865 E. Copley Drive 333 W.Ocean Blvd., 131h floor 5657 E.Washington Blvd. Diamond Bar,CA 91765 Long Beach,CA 90802 Los Angeles,CA 90040 Brian Scanlon L.A. County Public Works E.J.Contreras Joseph R. Garruba Mapping&Property Mgmt. Owens-Brockway California Portland Cement Co. 900 S.Fremont Avenue, 10`h Floor 2901 Fruitland Avenue 2025 E.Financial Way Alhambra,CA 91803 Vernon,CA 90058 Glendora,CA 91740 City of Commerce J.J.Little Planning Department California Water Service Comp. J.J.Little Company,Inc. 2535 Commerce Way 3316 West Beverly Boulevard 9945 Malgar Drive Commerce,CA 90040 Montebello,CA 90640 Whittier,CA 90603 Marisa Olguin City of Bell Chamber of L.R. Luppen Commerce Planning Department Metal Products Engineering 3801 Santa 6330 Pine Street Vernon e Avenue 3050 Leonis Boulevard , to Bell, CA 90201 058 Vernon,CA 90058 City of Cudahy State Clearinghouse Ellen Orlando Planning Department P.O.Box 3044 Karen Lehrer 5220 Santa Ana Street Sacramento,CA 95812-3044 2300 E. I Ith Street Cudahy, CA 90201 Los Angeles, CA 90021 L.A. County Sanitation District L.A. County Flood Control District Maywood Mutual Water Co. 3 P.O.Box 4998 900 S.Fremont Avenue 6151 Heliotrope Avenue Whittier,CA 90607 81h Floor Alhambra,CA 91803 Maywood,CA 90270 L.A.Unified School District City of Maywood Office of Environmental Health&Safety So. Cal Edison Planning Department ry Ave., 20`h Floor 1924 Cashdan Street 333 South Beaud 4319 Slauson Avenue Los Angeles, ud 90017 Compton, CA 90220 Maywood,CA 90270 Attn:Mike Frazier Attention: Glenn Striegler Suk Chon City of Los Angeles County of Los Angeles Dave Karrker Planning Department Department of Public Works California Water Service 200 North Spring St. Land Development Division 5243 E. Sheila Street Los Angeles,CA 90012 P.O.Box 1460 Commerce, CA 90022 Alhambra,CA 91802-1460 label size 1"x 2 5/8"compatible with Avery 05160/8160 Etiquette de format 25 mm x 67 mm compatible avec Avery 05160/8160 0918/0919®Aaany Dane alcigudwoo ww yg x ww 9Z leMol ap allanb113 0918/0915®A]@AV ul!m 91g11edwoo„8/5 Z x«1 azis lapel Reynan L.Ledesma The Gas Company(So. Cal Gas Co.) L.A.Junction Railroad Department of Water&Power L.A. P.O.Box 3150 4433 Exchange Avenue 111 N.Hope Street San Dimas, CA 91773 Vernon,CA 90058 Los Angeles,CA 90012 Attn:Marion Alexander Burlington Northern Santa Fe Railroad Core Investments,LLC Luis Niebla 3770 E.Washington Blvd. P.O.Box 1205 Core Investments,LLC Los Angeles,CA 90023 Fullerton,CA 92836 624 E.Leadora Avenue Attn:Dick Ebel Glendora, CA 91741 label size 1"x 2 5/8"compatible with Avery 05160/8160 Etiquette de format 25 mm x 67 mm compatible avec Avery 05160/8160 CITY OF VERNON NOTICE OF PUBLIC HEARING The City Council of the City of Vernon will conduct a Public Hearing, which you may attend. 2 col. x 4.7511 PLACE- Vernon City Hall, City Council Chambers 9.5 Column Inches (CI) 4305 Santa Fe Avenue, Vernon, CA 90058 mW4a2-.00 per DATE & Tuesday, June 16, 2015 at 9:00 a.m. $"449 per pub dot TIME- (or as soon thereafter as the matter can be heard) APPLICANT: Core Investments, LLC City of Vernon Rate $237.50 total REQUEST- Core Investments, LLC is requesting approval of a conditional use permit to construct and operate a commercial facility and a variance from Table 26-5.1-6(j) of the City's Zoning Ordinance, to allow the required curb-cut distance to be decreased to twenty-six (26) feet instead of the required forty-five (45) feet. The proposed Project is for a 2,950 square foot commercial building (office facility) comprised of one two-story building in the City of Vernon- The site is currently vacant and unpaved with no defined drainage pattern.A medical office previously occupied the site but was demolished several years ago. PROPERTY INVOLVED: 5592 Santa Fe Avenue, Vernon, CA 90058 REVIEW OF: The application, maps, and supporting information are. THE FILE: available for public review during normal business hours in the Vernon Public Works, Water & Development Services Department, located at 4305 Santa Fe Avenue, Vernon, CA 90058, between the hours of 7-15 a-m. and 5-15 p.m. Monday through Thursday. PROPOSED Staff plans to recommend that the Vernon City Council CEQA determine that.the proposal will not have a significant j FINDING: effect on the environment and is exempt from the California Environmental Quality Acl (CEQA). The conditions imposed on the conditional use permit are designed to protect the environment, public health, safety and general welfare. If you challenge the granting of the conditional use permit or any provisions thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: June Is./ Maria Avala. Citv Clerk RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING A CONDITIONAL USE PERMIT AND VARIANCE FOR CORE INVESTMENTS, LLC TO CONSTRUCT AND OPERATE A COMMERCIAL FACILITY LOCATED AT 5592 SANTA FE AVENUE WHEREAS, Core Investments, LLC (the "Applicant" ) has applied for a conditional use permit ("CUP") to construct and operate a commercial facility; and WHEREAS, the Applicant plans on constructing a two-story office building, approximately 2, 950 square feet in size (first floor is approximately 1, 668 sq. ft. ; second floor is approximately 1, 282 sq. ft . ) (the "Project") ; and WHEREAS, the site is currently vacant and unpaved with no defined drainage pattern; a medical office previously occupied the site but was demolished several years ago; and WHEREAS, Section 26 .4 . 2-3 (b) of the Comprehensive Zoning Ordinance of the City of Vernon (the "Zoning Code" ) would allow the proposed commercial use in the Commercial (C) Overlay Zone of the I Zone, if a CUP is issued; and WHEREAS, although the Applicant will provide the necessary number of parking spaces, for the City to issue a CUP, a variance from Section 26 . 5 . 1-6 (j ) will be required to approve the curb-cut for a driveway (to be used exclusively by automobiles) which is less than the required minimum 45 feet from the curb return; and WHEREAS, the Applicant will be providing twenty-six (26) feet from the curb return, i . e. , approximately nineteen (19) feet short of the requirement; and WHEREAS, due to the size of the corner lot it is not possible to comply with the curb-cut requirement, unless a non- standard driveway is constructed and the proposed building footprint and parking lot are reconfigured, which would restrict the Applicant from maximizing development of its lot merely because of the curb-cut requirement; and WHEREAS, the City is requiring the curb return to be enlarged as part of the development; and WHEREAS, the Zoning Code also establishes a minimum width of driveway. Due to the shape and size of the lot (one hundred and thirty-five (135), feet deep) , and in order to reasonably develop the lot, the driveway curb-cut must be placed in a closer proximity to the curb return then the Zoning Code prescribes . Denying this variance would create an undue hardship to the Applicant because it would be deprived of the ability to fully develop its lot; and WHEREAS, according to Section 26 .4 . 2-3 (b) of the Zoning Code, commercial uses are permitted in the Commercial (C) Overlay Zone of the I Zone with a CUP; and WHEREAS, the proposed site is located in the Commercial (C) Overlay Zone of the I Zone, Industrial; and WHEREAS, the proposed site is adequate in size, shape and topography for the proposed operation and has adequate drainage, landscaping, that will be installed pursuant to the Vernon City Code; and WHEREAS, the proposed site is surrounded by industrial, warehousing, retail, residential, and commercial uses compatible with the proposed use and no adverse effects from traffic, parking, noise, odors, dust, smoke, light or glare are anticipated from the proposed operation; and - 2 - WHEREAS, vehicular access to the site will be provided along Santa Fe Avenue and 56th Street, both of which are of adequate size and pavement type to handle the traffic generated from the proposed Project; and WHEREAS, based on the proposed Project' s building size, the amount of parking spaces required is in accordance with the ITE Parking Generation Manual. The Applicant will be providing nine (9) standard parking spaces, and therefore, the parking layout meets the minimum parking requirements for a commercial use as specified by the Zoning Code; and WHEREAS, it is anticipated that no overflow parking onto adjacent side streets will occur; and WHEREAS, the proposed Project will also be consistent with the City' s General Plan upon the approval of the CUP; and WHEREAS, in accordance with the City of Vernon General Plan Land Use Goal LU-1, the proposed commercial use will not inhibit manufacturing as the primary land use within the City; and WHEREAS, Policy LU-1.2 of the General Plan states, "Permit only those non-industrial uses, such as commercial and retail uses, which are necessary to support industry, and its employees. . . " ; and WHEREAS, Policy LU-1. 2 also requires the City to limit commercial uses to the Commercial (C) Overlay Zone, and to permit them only with a CUP; and WHEREAS, City staff has determined that the proposed site and development of the property is consistent with the applicable development standards, and therefore, all parking activities will be maintained on-site within the premises and will supply adequate parking on-site for the proposed development; and - 3 - WHEREAS, the Project is exempt pursuant to CEQA Guidelines section 15061, the general rule exempting projects that will not have a significant effect on the environment, and pursuant to CEQA Guidelines section 15332, because: (i) the Project is consistent with the City' s General Plan and zoning regulations, (ii) the proposed development occurs within City limits on a project site of no more than five acres substantially surrounded by urban uses, (iii) the Project site has no value, as habitat for any endangered, rare or threatened species, (iv) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (v) the site can be adequately served by all required utilities and public services . Therefore, a Notice of Exemption will be filed with the County Clerk' s Office; and WHEREAS, the City Council of the City of Vernon held a hearing on the application for a CUP on June 16, 2015; and WHEREAS, the City Council has received a Staff Report, dated June 16, 2015, upon which it has relied in making the foregoing recitals . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon further finds that all persons have had the opportunity to be heard or to file written comments to the proposed Project and after due consideration of all the evidence submitted at the public hearing determines that there are compelling reasons to justify granting a CUP. SECTION 3 : The City Council of the City of Vernon hereby - 4 - finds that the Project is exempt pursuant to CEQA Guidelines section 15061, the general rule exempting projects that will not have a significant effect on the environment, and section 15332, because : (i) the Project is consistent with the City' s General Plan and zoning regulations, (ii) the proposed development occurs within City limits on a project site of no more than five acres substantially surrounded by urban uses, (iii) the Project site has no value as habitat for any endangered, rare or threatened species, (iv) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (v) the site can be adequately served by all required utilities and public services . SECTION 4 : The custodian of records for the Project and all other material that constitute the record of proceedings upon which the City Council' s decision is based is the City Clerk of the City of Vernon. Those documents are available for public review in the Office of the City Clerk located at 4305 Santa Fe Avenue, Vernon, California 90058 . SECTION 5 : Consistent with Section 26 . 5 . 1-6 of the City Code, the City Council of the City of Vernon concurs with the recommendation of the Director of Public Works, Water & Development Services in setting the minimum parking and loading and maneuvering requirements for this office use as follows : a. Three (3) automobile parking stalls per 1, 000 square feet of office space. b. No truck parking and loading spaces are required. SECTION 6 : Subject to the conditions set forth below, the City Council of the City of Vernon hereby approves the issuance of the CUP for the Project based on the following findings as required by - 5 - Section 26 . 6 . 3-4 of the Vernon Zoning Code : a. The lot for the proposed use is adequate in size, shape, and topography, including any required drainage and landscaping because (i) the Project will provide the correct number of parking spaces on site; (ii) the issuance of the variance to allow the required curb-cut distance to be decreased to twenty-six (26) feet instead of the required forty-five (45) feet will not negatively affect accessibility to the site; (iii) the conditions imposed will ensure that the site is developed appropriately for its size, shape and topography; (iv) all components of a standard development project are included, such as a trash bin in an accessible location, and proper frontage and accessibility to nearby streets for the proposed use; and (v) the site will be constructed to ensure the drainage and landscaping conform to the Vernon Municipal Code. b. The proposed use will not adversely affect the interest of the public or the interests of other residents and property owners in the vicinity of the Project because (i) the Project site is surrounded by industrial, warehousing, retail and commercial uses compatible with the proposed use; (ii) the last use at the site was as a medical office; (iii) the conditions on the Project ensure that use will not adversely affect the interest of the public or the interests of other residents and property owners in the vicinity; (iv) the site is adequately serviced by nearby streets that have sufficient capacity; (v) the Project will not create any significant environmental effects. C . The proposed use will be compatible with the permitted uses of surrounding and adjacent properties because (i) commercial uses may be permitted in the Commercial (C) Overlay Zone of the I Zone of the City with a CUP; and (ii) all required parking is provided on-site; - 6 - and (iii) the conditions ensure that there will not be negative impacts on adjacent properties . d. The lot has adequate off-street parking facilities for this proposed use, as the Project site will be supported by a nine (9) stall surface parking lot. Therefore, the proposed parking layout will not create an impact on neighboring properties . The site parking areas will be paved with an impermeable surface that meets City of Vernon applicable development standards . e. The use as to location, operation and design, is consistent with the City' s Zoning Code and General Plan with the conditions imposed, including the City' s policy considerations as to acceptable uses in the City, because office uses that support industry are lawful in the City, and because Section 26 . 4 . 2-3 (b) of the Zoning Code permits commercial uses in the Commercial (C) Overlay Zone of the I Zone with the approval of a CUP. f . The proposed use is consistent with all applicable local, county, state and federal laws, rules and regulations because the conditions will ensure that there cannot be any significant impact on neighboring properties, and because no law prevents the proposed use of the property. g. The proposed use will not adversely affect the general welfare as a result of noise, increased traffic, interference with the flow of traffic, dust, or other undesirable characteristics because (i) only six (6) truck trips per week (UPS & FedEx trucks) and approximately sixteen (16) vehicle trips per day, including employee trips to and from the workplace, visitor trips, and miscellaneous employee trips throughout the day will be generated by the Project and this number of trips is insufficient to constitute an adverse impact; - 7 - (ii) the Project has access to Santa Fe Avenue, 56th Street and traffic will generally travel on Santa Fe Avenue to 56th Street to the commercial facility; Santa Fe Avenue and 56th Street are of adequate size and pavement type to handle the traffic generated from the proposed operation; (iii) the traffic operations in the area will not be adversely affected by the normal increase in traffic volumes generated by the Project; (iv) conditions are imposed to ensure the Project does not cause excess noise or impede traffic flow; and (v) the proposed office use will not create dust or impacts that would be undesirable in a largely industrial community. h. All of the conditions imposed on the Project are necessary to protect the public health, safety and general welfare because the conditions are limited in nature, and ensure that the property is used in the manner promised by the applicant. SECTION 7 : The City Council of the City of Vernon hereby approves the Variance for the Project based on the following findings as required by Section 26 . 6 . 2-5 of the Zoning Code: a) The intended use of the lot constitutes a special circumstance or condition that does not apply generally to other properties in the same overlay zone. Unlike other uses in the City, the proposed lot will be used exclusively for an office building with very little traffic . The City is requiring that the existing curb return be enlarged. Due to the size of the corner lot it is not possible to comply with the curb-cut requirement, unless a non-standard driveway is constructed and the proposed building footprint and parking lot are reconfigured, which would restrict Applicant from maximizing development of its lot merely because of the curb-cut requirement. Thus, the proposed use constitutes a special circumstance that is not - 8 - generally applicable. b) The strict or literal interpretation or application of the applicable development and site planning standards would result in practical difficulties and unnecessary hardships that would conflict with the purposes of the Zoning Code and would deprive the Applicant privileges granted to others in similar circumstances . The lot' s space constraints make conforming to parking and maneuvering requirements difficult. The City is requiring the curb return to be enlarged as part of the development. The Zoning Code also establishes a minimum width of driveway. Due to the shape of the lot being only one hundred thirty-five (135) feet deep, in order to reasonably develop the lot the driveway curb-cut must be placed in a closer proximity to the curb return then the Zoning Code prescribes . Denying this variance would create an undue hardship to the Applicant because it would be deprived of the ability to fully develop its lot . Given that the new facility only needs automobile parking, mandating the curb-cut requirement would constitute an unnecessary hardship that is inconsistent with the purposes of the Zoning Code, which are to authorize development that does not create unreasonable impacts on neighboring properties . c) The grant of the variance will not constitute a grant of special privileges . Because of the unique size of the corner lot, the requirement to meet the City' s minimum code requirement for driveway curb-cuts is overly burdensome and unnecessary. Sufficient automobile parking will be provided to meet the needs and demands of the property and will continue to do so with the granting of this variance. Adequate site distances are being provided along 5Gth Street which has low traffic volumes, as such, no special privilege is being granted by the approval of this variance . - 9 - d) The Project is consistent with the General Plan and the Zoning Code. Goal LU-1 of the General Plan is to promote and maintain manufacturing uses within the City of Vernon. The proposed use is consistent with General Plan Policy LU-1 . 1, the use is within a zone that authorizes the use with the issuance of a CUP, and consistent with General Plan Policy LU-1. 3, the office use will support basic industrial activities in the area. As long as the Applicant complies with the conditions of approval, both the variance and the overall Project will be consistent with the objectives of the Zoning Code and the General Plan. e) A variance relieving Applicant from Section 26 . 5 . 1-6 (j ) of the Zoning Code, Development Standards (curb cut) will not adversely affect the interest of the public or the interest of other residents and property owners within the vicinity of the premises, because this variance would allow driveway access and ensure the parking goals of the Zoning Code are met . Adequate site distances are being provided and 56th Street has very low volumes of traffic, therefore, no safety issues are being introduced by this variance . f) The grant of the variance places suitable conditions on the lot to protect surrounding properties and does not permit uses that are not otherwise allowed in the I Zone, Industrial . The use is consistent with the City' s Zoning Code which permits commercial uses in the I Zone. The variance is conditioned upon compliance with the parking requirements of the Zoning Code . This will assure that adequate on-site parking is maintained to minimize the possibility of on-street parking or staging occurring and will ensure that the impacts to the traveling public are minimized to a level of insignificance . SECTION 8 : The following conditions are imposed on the CUP - 10 - and Variance . These conditions are deemed necessary to protect the public health, safety and general welfare: a. The facility shall be operated in accordance with all current codes, rules, and regulations and subject to fees as adopted by the City of Vernon not otherwise addressed by this grant of a CUP. b. The facility shall be used for general office use purposes only (no medical offices) and no retail sales shall be permitted at this location. C . The facility shall be operated in a manner that will prevent unsanitary conditions, odors or other nuisances . d. At all times, all parking areas shall be: (1) striped in a manner acceptable to the Director of Public Works, Water & Development Services; (2) paved with a concrete or asphalt concrete paving or other surface reasonably acceptable to the Director of Public Works, Water & Development Services; (3) adequately drained; and (4) kept free of potholes, dust, mud, trash and weeds . e . Servicing of vehicles, including but not limited to, washing, steam cleaning and repairing, shall not be permitted on the premises . No inoperative vehicles shall be stored on-site . f . The parking area shall be maintained substantially in compliance with the site plan as submitted as part of this CUP application, except as otherwise approved in writing by the Director of Public Works, Water & Development Services . Vehicle may be parked on the property only within the designated parking spaces . g. The maximum size truck servicing the site shall be twenty-five (25) feet in length. h. Prior to occupancy, the Applicant shall deed to the City property for the enlargement of the curb return at the northeast - 11 - corner of Santa Fe Avenue and 56th Street to a 60' foot radius and a 52' foot property line radius . In addition, the Applicant shall, prior to occupancy, complete the following construction to enlarge the radius : (i) The curb, gutter, sidewalk and necessary roadway at the intersection of Santa Fe Avenue and 56th Street shall be removed and replaced in accordance with the Master Plan of City Streets; (ii) A curb ramp shall be constructed as part of the curb ramp improvement; (iii) Any objects including but not limited to trees, power poles, traffic signals, signs and fire hydrants, that conflict with proposed improvements shall be removed or relocated by the Applicant at their expense; and (iv) Street striping shall be removed and replaced in accordance with the street improvements . Applicant shall complete all subject work in accordance with City Standards, and to the satisfaction of the Director of Public Works, Water & Development Services . i . The Applicant shall maintain property in such a way as to not directly cause or contribute to National Pollutant Discharge Elimination System permit (Stormwater Permit) violation. j . Owner/operator shall inspect and maintain (as recommended by L. I .D manufacturer or industry standard) all onsite stormwater post construction structural Local Impact Development (L. I .D) to ensure proper and effective operation of the L. I .Ds . k. Owner/operator shall maintain a proper inspection and maintenance ("I & M" ) log for all onsite stormwater post construction structural L. I .Ds . The I & M Log shall be maintained current with activity details for the previous three (3) years and made available to City of Vernon representatives upon request . 1 . Noncompliance with any of the conditions herein shall - 12 - constitute sufficient grounds for the City Council of the City of Vernon to revoke this CUP, or take appropriate enforcement action, including citation and or fines for a violation. M. Not later than twenty (20) days from the date of approval of the CUP, the Applicant and Owner shall indicate, in writing, its acceptance of and agreement with the conditions herein. The CUP and Variance shall be void and of no force or effect unless such written acceptance and agreement is submitted to the City within the twenty (20) day period. n. Applicant, Owner, and any successors in interest shall indemnify, hold harmless and defend the City of Vernon, its officers, agents and employees from and against any and all claims, complaints or petitions for: (1) damages, losses, expenses resulting from bodily injury, sickness, disease, disability or death arising from the operation of the facility excluding therefrom any such claim resulting from the sole negligence or intentional wrongdoing of the City of Vernon, its officers, agents or employees; (2) a peremptory writ or other relief by way of injunction, mandamus, or administrative mandamus; and/or (3) legal expenses and attorney' s fees incurred by the City of Vernon on behalf of any party in such actions or proceedings . The City of Vernon does not waive its right to participate in the defense of any such action. - 13 - SECTION 9 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name : Title : Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian W. Byun, D uty City Attorney - 14 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 15 - MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, MAY 19, 2015, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Martinez, Ybarra, and Woodruff-Perez MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor McCormick. Mayor Pro-Tem Davis led the flag salute. CHANGES TO THE AGENDA Maria Ayala, City Clerk, announced that Agenda Item No. 19, G has added departments and will be "City Administration, City Council, and Community Promotion." PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. The public will also be given an opportunity to comment on matters on the posted agenda during Council deliberation. No public comment provided. PRESENTATIONS 1. Personnel Matters - Service Pin Awards. A ril 2015 Anniversary Employee Name Job Title Years 1. Michael Hendrickson Substation Technician 25 Director of Human Resources Teresa McAllister reported on the employee's years of service. Mayor McCormick presented the service pin to employee Michael Hendrickson. 2. City Clerk to administer the Oath of Office required by Article XX, Section 3 of the Constitution of the State of California for newly hired Police Officer, Jason Lucas. City Clerk,Maria Ayala, administered the Oath of Office to new City of Vernon Police Officer Lucas. Officer Lucas' family was in attendance. Mayor McCormick announced at 9:08 a.m. that the meeting would take a brief recess. The meeting reconvened at 9:19 a.m. ELECTRIC RATES ADJUSTMENTS 3. Resolution No. 2015-26 — A Resolution of the City Council of the City of Vernon adopting electric rate schedules nos. CS, D, GS-1, GS-2, LS-1, LS-2, OL-1, PA-1, PA-2, PA-TOU, TC-1, TOU GS-1, TOU GS-2, TOU PA-1, TOU-1), TOU-G, TOU-1 and TOU-V. Recommendation: A. Find that the electric rate adjustment plan is exempt under 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, because the plan referenced herewith merely augments the existing electric rate structure; and Regular City Council Meeting Minutes May 19, 2015 B. Approve and authorize the implementation of a three-year electric rate adjustment plan, whereby rates for all customer classes would increase by 3.5% effective July 1, 2015, an additional 3% effective July 1, 2016, and an additional 2.5% effective July 1, 2017. Gas and Electric Director Carlos Fandino, Finance Director Bill Fox, and Economic Development Manager and Successor Agency Staff Alex Kung provided an informational PowerPoint presentation on the proposed item. Also present was Mike Berwanger from Public Financial Management who provided additional financial investment information. Independent Reform Monitor Jon Van De Kamp, inquired as to how the debt service adjustments are factored in for providing infrastructure assistance. Mr. Fox responded to Mr. Van De Kamp's inquiry. Public Comment: Marisa Olguin(Vernon Chamber of Commerce) Ms. Olguin commended staff for working with the Electric Rates Committee, and acknowledged constraints the City has to deal with,with regards to debt restructure. Requests that the City continue to be good stewards as the budget planning process is continued. It was moved by Davis and seconded by Ybarra to approve Resolution No. 2015-26, Motion carried, 5-0. CONSENT CALENDAR It was moved by Martinez and seconded by Woodruff-Perez to approve all matters listed under the Consent Calendar under one motion as presented. Motion carried, 5-0. Claims Against the City—Received and Filed 4. Claim for Damages received on April 30, 2015 from Gonzalo Garcia in the amount of$205.00. Minutes— To be Received and Filed 5. Minutes of the Regular City Council Meeting held May 5, 2015. Warrant Registers 6. Approval of City Payroll Warrant Register No. 707, totaling $4,189,250.42, which covers the period of April 1, through April 30, 2015, and consists of the following: A. Ratification of direct deposits, checks and taxes totaling $3,022,660.69; and B. Checks and electronic fund transfers paid through General bank account totaling $1,166,589.73. 7. Approval of City Warrant Register No. 1424, totaling $1,124,187.19, which covers the period of April 28, through May 11, 2015, and consists of the following: A. Ratification of wire transfers totaling $860,129.92; and B. Ratification of the issuance of early checks totaling $161,681.48; and C. Authorization to issue pending checks totaling $102,375.79. 8. Approval of Light&Power Warrant Register No.389,totaling$1,135,318.79,which covers the period of April 28, through May 11, 2015, and consists of the following: Page 2 of 7 Regular City Council Meeting Minutes May 19, 2015 A. Ratification of wire transfers totaling $1,066,284.09; and B. Ratification of the issuance of early checks totaling $18,968.82; and C. Authorization to issue pending checks totaling $50,065.88. 9. Approval of Gas Warrant Register No. 177,totaling$1,317,956.38,which covers the period of April 28,through May 11, 2015, and consists of the following: A. Ratification of wire transfers totaling $1,315,085.88; and B. Ratification of the issuance of early checks totaling $2,863.50; and C. Authorization to issue pending checks totaling $7.00. Health and Environmental Control Department 10. April 2015 Monthly Report,to be received and filed. Fire Department 11. Activity Report for the period of April 16 through April 30, 2015,to be received and filed. Police Department 12. Activity Log and Statistical Summary of Arrests and Activities for the period of April 16, through April 30, 2015, to be received and filed. NEW BUSINESS City Clerk Department Public Works, Water and Development Services Director Kevin Wilson provided a brief report on Agenda Items Nos. 13-16. 13. Resolution No. 2015-27 — A Resolution of the City Council of the City of Vernon determining the Special Parcel Tax Levied pursuant to section 5.45 of the Municipal Code for fiscal year 2015-2016. Recommendation: A. Find that approval of the proposed Resolution does not constitute a "project" pursuant to sections 15378(b)(2) and (4) of the Guidelines to the California Environmental Quality Act ("CEQA"), because it constitutes an administrative activity and government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant impact on the environment; and even if the adoption of the proposed resolution did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt a resolution setting the Warehouse Special Parcel Tax rate at $29.544 per 100 square feet of gross area of land for fiscal year 2015-2016 and submitting the warehouse special parcel tax list to the Los Angeles County Auditor Controller's Office. It was moved by Davis and seconded by Ybarra to approve Resolution No. 2015-27, Motion carried, 5-0. 14. Resolution No. 2015-28 — A Resolution of the City Council of the City of Vernon approving and authorizing the execution of an agreement for billing of direct Page 3 of 7 Regular City Council Meeting Minutes May 19, 2015 assessments by and between the City of Vernon and the Los Angeles County Auditor-Controller (Special Parcel Tax Levied pursuant to section 5.45 of the Municipal Code). Recommendation: A. Find that approval of the proposed agreement does not constitute a "project" pursuant to sections 15378(b)(2) and (4) of the Guidelines to the California Environmental Quality Act ("CEQA"), because it constitutes an administrative activity and government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and even if the adoption of the proposed did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt a resolution to authorize the Finance Director to enter into a direct assessments billing agreement with the Los Angeles County Auditor-Controller for the collection and distribution of the Warehouse Special Parcel Tax for fiscal year 2015-2016; and C. Authorize the Finance Director to file the Agency Information Sheet with the County of Los Angeles Auditor-Controller for the Vernon Warehouse Special Parcel Tax. It was moved by Davis and seconded by Martinez to approve Resolution No. 2015-28, Motion carried, 5-0. 15. Resolution No. 2015-29 — A Resolution of the City Council of the City of Vernon determining the Public Safety Special Parcel Tax for fiscal year 2015-2016. Recommendation: A. Find that approval of the proposed Resolution does not constitute a "project" pursuant to sections 15378(b)(2) and (4) of the Guidelines to the California Environmental Quality Act ("CEQA"), because it constitutes an administrative activity and government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant impact on the environment; and even if the adoption of the proposed resolution did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt a resolution setting the Public Safety Special Parcel Tax rate at$0.03046 per square foot of taxable parcel area for fiscal year 2015-2016 and submitting the public safety special parcel tax list to the Los Angeles County Auditor Controller's Office. It was moved by Ybarra and seconded by Martinez to approve Resolution No.2015-29,Motion carried, 5-0. 16. Resolution No. 2015-30 — A Resolution of the City Council of the City of Vernon approving and authorizing the execution of an agreement for billing of direct assessments by and between the City of Vernon and the Los Angeles County Auditor-Controller(Public Safety Special Parcel Tax). Recommendation: A. Find that approval of the proposed agreement does not constitute a "project" pursuant to sections 15378(b)(2) and (4) of the Guidelines to the California Environmental Quality Act ("CEQA"), because it constitutes an administrative activity and government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and even if the adoption of the proposed did constitute a Page 4 of 7 Regular City Council Meeting Minutes May 19, 2015 project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt a resolution to authorize the Finance Director to enter into a direct assessments billing agreement with the Los Angeles County Auditor-Controller for the collection and distribution of the Public Safety Special Parcel Tax for fiscal year 2015-2016; and C. Authorize the Finance Director to file the Agency Information Sheet with the County of Los Angeles Auditor-Controller for the Vernon Public Safety Special Parcel Tax. It was moved by Davis and seconded by Woodruff-Perez to approve Resolution No. 2015-30, Motion carried, 5-0. Fire Department 17. Approval of Amendment No. 1 to the existing Memorandum of Understanding between the City of Vernon and Los Angeles Regional Interoperable Communications System Authority. Recommendation A. Find that approval of the amendment proposed in this staff report is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve Amendment No. 1 to the existing Memorandum of Understanding ("MOU") between the City of Vernon and Los Angeles Regional Interoperable Communications System Authority ("LA-RICS"), in substantially the same form as submitted herewith, for the loan of additional LA-RICS User Equipment (portable radios)to the Vernon Fire Department. Fire Chief Mike Wilson provided a brief report. It was moved by Ybarra and seconded by Davis to approve Amendment No. 1 to the existing Memorandum of Understanding between the City of Vernon and Los Angeles Regional Interoperable Communications System Authority, Motion carried, 5-0. ORDINANCES 18. Ordinance No. 1228 - An Ordinance of the City Council of the City of Vernon, California, amending Section 2.69-1(i) of Article X of Chapter 2 of the Vernon Municipal Code, and repealing or amending all ordinances or parts of ordinances in conflict therewith. (second reading) Recommendation: A. Find that approval and adoption of the proposed ordinance is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Adopt the ordinance to amend Section 2.69-1(i) of the Vernon Municipal Code to correct the Industrial Development Division to Industrial Development Department. Mayor McCormick read the title of the ordinance. Page 5 of 7 Regular City Council Meeting Minutes May 19, 2015 City Administrator Mark Whitworth gave a brief report on the item and added that no revisions had been made to the original proposal from its first reading. Independent Reform Monitor, Jon Van De Kamp inquired if there were employee positions planned for this department. Mr. Whitworth responded that one person would begin in the department and identify staffing needs—at a moderate level. On a motion by Davis and second by Martinez, City Clerk Maria Ayala took a roll call vote as follows: Ayes: McCormick, Davis, Martinez, Ybarra, and Woodruff Noes: None Abstentions: None Absent: None Mayor McCormick announced at 10:32 a.m. that the meeting would take a brief recess. The meeting reconvened at 10:43 a.m. BUDGET STUDY SESSION 19. Review of proposed budgets for fiscal year 2015-2016 for the following departments: A. City Attorney Department B. Gas & Electric Department C. Public Works, Water, And Development Services Department D. Industrial Development Department E. Information Technology (IT) Division F. City Clerk Department G. City Administration, City Council, and Community Promotion Mr. Fox opened the budget study session. Department Heads proceeded to present their individual proposed budgets as follows: Hema Patel(City Attorney); Carlos Fandino (Gas& Electric); Kevin Wilson(Public Works,Water, and Development Services);Mark Whitworth (Industrial Development); Ernesto Smith (Information Technology); Maria Ayala (City Clerk); Kristen Enomoto (City Administration, City Council, and Community Promotions) ORAL REPORTS 20. City Administrator Reports—brief reports on activities and other brief announcements by the City Administrator and Department Heads. Police Chief Daniel Calleros reported on the following: an armed robbery on April 29; gun shots heard in the 3200 block of Fruitland Ave. on May 2; update on a previously reported arrest wherein the individual had ingested methamphetamine and due to encouragement from the arresting officer later sought help to end his addiction—he left a `thank you' note for the officer; and this is National Police Week to honor and remember fallen officers. Police Captain Michael Gillman reported on vandalism that occurred on May 5, a suspect was able to be apprehended due to witness assistance. Captain Gillman noted a few areas of possible vandalism reported by the City Council. Fire Chief Michael Wilson provided an update on the following: the MDA Fill-the-Booth fundraiser is still ongoing; ladder truck certifications; inspections for apparatus; continued trainings;incidents that recently occurred: April 22 crews responded to a"waterfall"alarm and were able to quickly respond and put out the fire; on April 24 all engines responded to the 710 southbound Freeway to a tanker fire. Director of Public Works, Water and Development Services Kevin Wilson reported on the following: currently out to bid on: Slauson and Boyle Project and also out to bid on water well sight; hired a contractor to install a sewer lateral; the drought regulations; last week was Building and Safety Week; in recognition of Public Works Week (this week), a lunch will be Page 6 of 7 Regular City Council Meeting Minutes May 19, 2015 hosted for staff on Thursday; and the La Villa Basque restaurant will be reopened as a Mexican restaurant. Director of Gas and Electric Carlos Fandino reported on recent outages and also provided an update on Governor Brown's executive order to reduce greenhouse gas emissions. Mr. Fandino will report back to the Council on how this will impact the City and its businesses. Finance Director William Fox provided a brief update on the following: the current field audits taking place; in process of submitting insurance renewals; and provided information on the process, and current status of the bond refinance. Deputy Director of Health and Environmental Control Dave LeDuff provided a brief update on the aedes aegypti mosquito as it may currently pose a serious health threat. Encourages all to check for any stagnant water around their homes. Director of Human Resources Teresa McAllister announced the following: June 10 Employee Appreciation BBQ; will be reporting back on the succession planning the City is undertaking; will also be reporting back on the City's intern program; announced that the current HR intern will be leaving the City as she has been offered a full-time position; the Health and Benefits Fair will also be coming up. Economic Development Manager and Successor Agency Staff Alex Kung announced that the Oversight Board meeting that was scheduled for May 21 is being cancelled due to lack of quorum; a brief update on the Governor's Budget May Revise; and that the City has been awarded a $250,000 grant through CalTrans, in conjunction with SCAG to conduct a L.A. River Bike Study. City Administrator Mark Whitworth reported on the following: today's budget sessions conclude the department presentations,he invites Councilmembers to use the following weeks to ask questions of the Department Heads that they still might have; a public hearing for the adoption of the budget will be scheduled for the next Council Meeting; Vernon Quarterly will be coming out this week; he attended a conference in Indian Wells last weekend where L.A. County Sheriff McDonnel spoke on the reforms that are taking place in the L.A. County Sheriff's Department, and also attended a session an informative session on city branding. 21. City Council Reports—brief report on activities, announcements, or directives to staff. Councilmember Woodruff-Perez requested information from Human Resources regarding the impact the intern program has on the City's budget. With no further business, at 1:08 p.m., Mayor McCormick adjourned the meeting. W. Michael McCormick Mayor ATTEST: Maria E. Ayala City Clerk Page 7 of 7 MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, JUNE 2, 2015, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Martinez, Ybarra, and Woodruff-Perez MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor McCormick. Students Diana Hernandez and Luz Maria Hernandez led the flag salute. CHANGES TO THE AGENDA Mayor McCormick announced there were no changes to the agenda. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. The public will also be given an opportunity to comment on matters on the posted agenda during Council deliberation. No public comment provided. PRESENTATIONS 1. Drug Abuse Resistance Education (D.A.R.E.) Essay Awards for the Vernon Elementary School students. Detective Escobedo presented the following students with awards for having won in the D.A.R.E. Essay Contest: lst Place—Esmeralda Alvarez; 2nd Place—Diana Ruiz; 3rd Place Angela Mitchell 1st Place — Arturo Arbajan; 2nd Place Luz Maria Hernandez; and 3rd Place Diana Hernandez 2. City of Vernon College Volunteer Internship Program. Human Resource Analyst Lisette Michel provided an informative PowerPoint presentation on the City's intern program. Ms. Michel responded to questions from the Council regarding intern opportunities for high school students. Independent Reform Monitor, Jon Van De Kamp, commented that he would welcome the opportunity to have a lunch session with the interns to provide them with information about the City of Vernon. 3. City of Vernon Succession Planning. Human Resource Director Teresa McAllister provided an informative PowerPoint presentation on the City's succession planning. Ms. McAllister responded to questions from the Council regarding potential reclassification of job titles. PUBLIC HEARING 4. Public comment on the adoption of the fiscal year 2015-2016 proposed City-wide Budget. Regular City Council Meeting Minutes June 2, 2015 Resolution No. 2015-31 — A Resolution of the City Council of the City of Vernon approving a budget for the fiscal year 2015-2016. Recommendation: A. Find that adoption of the proposed resolution is exempt from the California Environmental Quality Act ("CEQA"), because adoption of the budget is the creation of a government funding mechanism or other government fiscal activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is therefore not a "project" as defined under Section 15378(b)(4). Further, even if adoption of the budget were considered a "project," it would be exempt from CEQA review in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt a resolution approving the citywide balanced budget for fiscal year 2015- 2016, with estimated budgeted revenues and expenditures of$340,274,333. City Administrator Mark Whitworth briefly introduced the item. Director of Gas and Electric Carlos Fandino provided a PowerPoint presentation on the department's budget in addition to the presentation provided on May 19. Fire Chief Mike Wilson provided a PowerPoint presentation on the department's budget in addition to the presentation provided on May 5. Mayor McCormick opened the public hearing at approximately 9:50 a.m. Council had questions regarding a potential citywide budget cut of 5-10%; how Vernon costs compare to other cities; expenditure areas of concern; etc. Mr. Whitworth and various Department Heads responded to questions. Public Comment: Peter Corselli Mr. Corselli announced the recent letter sent to Council and City Clerk from U.S. Growers. Expressed objections to rate increases and requests the City have a consultant firm conduct a cost analysis. Mr.Van De Kamp commended Councilmember Ybarra for her questions and made suggestions for future consideration of budget items by the Council. Mayor McCormick closed the public hearing at approximately 10:46 a.m. It was moved by Martinez and seconded by Davis to approve Resolution No. 2015-31,Motion carried, 5-0. CONSENT CALENDAR It was moved by Davis and seconded by Woodruff-Perez to approve all matters listed under the Consent Calendar under one motion as presented. Motion carried, 5-0. Claims Against the City—Received and Filed 5. Claim for Damages received on May 7, 2015 from Pacific Bell/AT&T in the amount of$1,674.58. Warrant Registers 6. Ratification of the following City Warrant Registers to record the following voided checks: Page 2 of 8 Regular City Council Meeting Minutes June 2, 2015 A. City Warrant Register No. 1422 to record voided Check No. 347264 in the amount of$150.00; and B. City Warrant Register No. 1423 to record voided Check No. 347354 in the amount of$225.00. 7. Approval of City Warrant Register No. 1425,totaling$577,690.77,which covers the period of May 12 through May 25, 2015 and consists of the following: A. Ratification of wire transfers totaling $577,690.77; and B. Ratification of the issuance of early checks totaling $357,468.37; and C. Authorization to issue pending checks totaling $193,605.43. 8. Approval of Light&Power Warrant Register No.390,totaling$4,715,022.43,which covers the period of May 12 through May 25, 2015 and consists of the following: A. Ratification of wire transfers totaling $4,677,234.27; and B. Ratification of the issuance of early checks totaling $23,855.39; and C. Authorization to issue pending checks totaling $13,932.77. 9. Approval of Gas Warrant Register No. 178, totaling $493,935.81, which covers the period of May 12 through May 25, 2015 and consists of the following: A. Ratification of wire transfers totaling $478,902.84; and B. Ratification of the issuance of early checks totaling $15,032.97. City Administration Department 10. Council Conference Attendance Report to the 2015 California Contract Cities Association 56'Municipal Seminar. Recommendation: A. Receive and file the Council Conference Attendance Report. 11. Council Conference Attendance Report to the Southern California Association of Governments Regional Conference and General Assembly. Recommendation: A. Receive and file the Council Conference Attendance Report. Fire Department 12. Activity Report for the period of May 1 through May 15, 2015, to be received and filed. Police Department 13. Activity Log and Statistical Summary of Arrests and Activities for the period of May 1,through May 15, 2015, to be received and filed. NEW BUSINESS Gas and Electric Department 14. Resolution No. 2015-32 — A Resolution of the City Council of the City of Vernon repealing Resolution No.8927 and authorizing the Director of Gas&Electric to buy, sell, and exchange emission reduction credits and reclaim trading credits). Page 3 of 8 Regular City Council Meeting Minutes June 2, 2015 Recommendation: A. Find that transactions involving Reclaim Trading Credits and Emission Reduction Credits are exempt under 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, because such transactions do not have an impact; and B. Repeal Resolution No. 8927 wherein the Acting City Clerk was granted authority to purchase, sell, or exchange ERCs for the City with full power and authority to determine the nature and terms of any such purchase. Ordinance No. 1200,passed in 2012, annulled Resolution No. 8927 making it not legally valid; and C. Authorize the Director of Vernon Gas & Electric, or his/her designee, to buy, sell and exchange Emission Reduction Credits and Reclaim Trading Credits based on Vernon's current Competitive Bidding and Purchasing Ordinance. Mr. Fandino gave a brief report on the proposed resolution. Mr. Van De Kamp inquired as to the potential $15 million revenues and if they would be used toward capital improvement. Mr. Fandino and Bill Fox (Director of Finance)responded to Mr. Van De Kamp explaining the restrictions of these specific funds. It was moved by Davis and seconded by Ybarra to approve Resolution No. 2015-32, Motion carried, 5-0. Public Works, Water and Development Services Department 15. Resolution No. 2015-33 — A Resolution of the City Council of the City of Vernon approving and authorizing the execution of an agreement regarding release of deed restriction and joint escrow instructions with DP Vernon, LLC and Bel Air Soto, LLC for the property located at 5001 S. Soto Street. Recommendation: A. Find that approval of the agreement regarding release of deed restriction is exempt under the California Environmental Quality Act("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve the Agreement Regarding Release of Deed Restriction and Joint Escrow Instructions with DP Vernon, LLC (DP Vernon) and Bel Air Soto, LLC (Bel Air Soto) for the property located at 5001 S. Soto Street. Economic Development Manager and Successor Agency Staff Alex Kung provided a report on the proposed resolution. It was moved by Ybarra and seconded by Martinez to approve Resolution No.2015-33,Motion carried, 5-0. 16. Accept the Quitclaim Deed(Regarding Electrical Easement)at 5001 Soto Street. Recommendation: A. Find that the acceptance of the proposed Quitclaim Deed is categorically exempt under 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 B. Accept the Quitclaim Deed and authorize the Mayor to execute said documents. Page 4 of 8 Regular City Council Meeting Minutes June 2, 2015 Director of Public Works, Water and Development Services Kevin Wilson provided a report on the proposed Quitclaim Deed. It was moved by Martinez and seconded by Davis to approve Quitclaim Deed,Motion carried, 5-0. 17. Resolution No. 2015-34 — A Resolution of the City Council of the City of Vernon declaring a Phase II Water Supply Shortage pursuant to section 25.104 of the Vernon Municipal Code. Recommendation: A. Find that declaring a Phase II Water Supply Shortage pursuant to Vernon Municipal Code § 25.104 is exempt under the California Environmental Quality Act(CEQA) in accordance with(a) CEQA Guidelines Section 15061(b)(3),the general rule that CEQA only applies to projects that may have an effect on the environment; and(b) Section 15307, because it is an action taken by a regulatory agency to assure the "maintenance, restoration, or enhancement" of natural resources and includes procedures to protect the environment; and B. Adopt the resolution declaring a Phase II Water Supply Shortage pursuant to Vernon Municipal Code Section 25.104. Mr. Wilson provided a brief report on the City's ability to meet water reduction rates. It was moved by Davis and seconded by Martinez to approve Resolution No. 2015-34, Motion carried, 5-0. 18. Approval of Encroachment License No. 418 between the City of Vernon and Exide Technologies. Recommendation: A. Find that the approval of the Encroachment License Agreement is exempt under the California Environmental Quality Act("CEQA"),in accordance with(a)CEQA Guidelines Section 15061(b)(3),the general rule that CEQA only applies to projects which have the potential for causing a significant effect on the environment; and (b) CEQA Guidelines Section 15308, which categorically exempts those actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance,restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment; and B. Approve Encroachment License Agreement No. 418 between the City of Vernon and Exide Technologies Inc. Mr. Wilson provided a brief report on the proposed encroachment license. It was moved by Ybarra and seconded by Woodruff-Perez to approve Encroachment License No. 418, Motion carried, 5-0. 19. Approval of Agreement between the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority and the City of Vernon. Recommendation: A. Find that approval of the proposed Agreement between the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority(Gateway) and the City of Vernon(hereinafter referred to as"Agreement")for cost sharing for the installation of monitoring equipment and monitoring pursuant to the Harbor Toxic Pollutants Total Maximum Daily Load (TMDL) (also known as the Dominguez Channel and Greater Los Angeles and Long Beach Harbor Waters Toxic Pollutants TMDL)is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and Page 5 of 8 Regular City Council Meeting Minutes June 2, 2015 B. Authorize the City Administrator to execute the Agreement, between the Gateway and the City of Vernon for cost sharing for the installation of monitoring equipment and monitoring pursuant to the Harbor Toxic Pollutants TMDL. The City of Vernon's proportional share of costs for the installation of monitoring equipment and monitoring to be incurred in accordance with the cost share formula in Exhibit A of this Agreement is for a not-to-exceed amount of$2,504.96 for the first year and $1,067.00 per year for the second and third year. The term of this Agreement commences July 1, 2015 through June 30, 2018. Mr. Wilson provided a brief report on the proposed agreement. It was moved for approval by Davis and seconded by Martinez, Motion carried, 5-0. 20. Approval of a Fire Lane Easement at 3200 Washington Boulevard from Every Bear Investments LLC. Recommendation: A. Find that the acceptance of the proposed Fire Lane Easement is categorically exempt under 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 B. Accept the Fire Lane Easement and authorize the Mayor to execute said documents. Mr. Wilson provided a brief report on the proposed easement. It was moved by Ybarra and seconded by Woodruff-Perez to accept and execute the Fire Lane Easement, Motion carried, 5-0. ORDINANCES 21. Ordinance No. 1229-An Ordinance of the City Council of the City of Vernon adding Article XVI to Chapter 24 of the Vernon Municipal Code relating to expedited permitting procedures for small residential rooftop solar systems. (first reading) Recommendation: A. Find that the adoption of an ordinance related to an expedited permitting procedure for small residential rooftop solar systems is exempt under the California Environmental Quality Act("CEQA")in accordance with Section 15061(b)(3),the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Approve the first reading of an ordinance Related to an Expedited Permitting Procedure for Small Residential Rooftop Solar Systems. Mr. Wilson provided a brief report on the proposed ordinance. Mr. Van De Kamp asked as to whether or not this item might be referred to the Housing Commission. Council had questions regarding the parameters of the permits for the residential rooftop solar systems. Mr. Wilson responded accordingly. It was moved by Ybarra and seconded by Davis to approve Ordinance No. 1229 for first reading, Motion carried, 5-0. ORAL REPORTS 22. City Administrator Reports—brief reports on activities and other brief announcements by the City Administrator and Department Heads. Page 6 of 8 Regular City Council Meeting Minutes June 2, 2015 Police Chief Daniel Calleros reported on the following: a commercial burglary on May 30; an officer observed vehicles in a speed contest on June 1; and Vernon PD received about $1 million in civil forfeiture funds during a seven year period from 2006—2013. Police Captain Michael Gillman reported on vandalism that occurred on Fruitland Ave. Captain Gillman also took note of a few areas of possible vandalism reported by the City Council. Fire Chief Michael Wilson provided an update on the following: the MDA Fill-the-Booth fundraiser collected over $20,000 in donations; several more reserve firefighters have been hired and will be participating in a mini-academy in June; trainings on: Firefighter Survival Training, Heavy Fire Flashover, Strike Team Leader, and Area E HazMat Decon; and, lastly, that there were no significant incidents to report at this time. Director of Public Works, Water and Development Services Kevin Wilson reported on the following: a presentation on the Eco-Rapid Transit Project will be provided for the Council at the next meeting;replacement of the energy generator in the basement;a portion of the building formerly known as the "Catalina building"was demolished for construction of a parking lot. Director of Gas and Electric Carlos Fandino reported on recent power outages. Finance Director William Fox provided a brief update on the following: continuing process for insurance renewals; information regarding the State of California unclaimed property website; annual audit is ongoing and progressing without any significant items of concern as of yet. Director of Health and Environmental Control Leonard Grossberg provided a brief update on: having attended the DTSC community advisory group meeting to assist with the upcoming review and closure plan for Exide facility; and the Green Vernon Commission's recent subcommittee meeting to discuss rendering odors AQMD Rule 415. Director of Human Resources Teresa McAllister announced the June 10 Employee Appreciation BBQ and invited the Council to attend. Economic Development Manager and Successor Agency Staff Alex Kung reported on the recent DTSC meeting he attended in regards to Exide's closure plan. Senior Advisor to the City Administrator Fred MacFarlane provided an update on: Vernon Quarterly Issue 9; Vernon Quarterly— Special Edition; and the recent walkthrough of Vernon Village Park that included Senate President Pro Tempore Kevin De Leon, City Councilmembers, and various City staff, etc. City Deputy Administrator Kristen Enomoto provided an update on the following: Vernon Housing Commission upcoming meeting,Wednesday,June 10;noticing to be issued to tenants of units that are to be sold or remodeled; expiring terms of four positions on the Vernon Housing commission in August. City Administrator Mark Whitworth provided updates and reports on the following: he and Kevin Wilson attended the recent Gateway COG meeting; upcoming Annual League of California Cities conference;Vernon Business and Industry Commission meetings to date; and an update on the Docket 2 grants from the Vernon CommUNITY Grant Fund Committee. 23. City Council Reports—brief report on activities, announcements, or directives to staff. No reports provided. Mayor McCormick recessed the meeting at 11:59 a.m. and reconvened the meeting at 12:05 p.m. Page 7 of 8 Regular City Council Meeting Minutes June 2, 2015 CLOSED SESSION At 12:05 p.m. the City Council entered into closed session to discuss the following agendized items: 1. CONFERENCE WITH REAL ESTATE NEGOTIATIONS Government Code Section 54956.8 Property: 3200 Fruitland Avenue, Vernon, California Agency Negotiator: Mark Whitworth, City Administrator/Alex Kung, Economic Development Manager Negotiating Party: PI Fruitland, LLC Under Negotiation: Price and Terms of Assignment and Assumption of Purchase and Sale Agreement. 2. CONFERENCE WITH REAL ESTATE NEGOTIATIONS Government Code Section 54956.8 Property: 3200 Fruitland Avenue, Vernon, California Agency Negotiator: Mark Whitworth, City Administrator/Alex Kung, Economic Development Manager Negotiating Party: Pechiney Cast Plate, Inc. Under Negotiation: Price and Terms of Second Amendment Agreement At 12:26 p.m.the City Council exited closed session.Deputy City Attorney Brian Byun announced that there was no reportable action from closed session. With no further business, at 12:27 p.m., Mayor McCormick adjourned the meeting. W. Michael McCormick Mayor ATTEST: Maria E. 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O co co W r N av 2 v �r 2 ZZ Wp N N Ul to oo°G� 1.0 to o co N WN, f � N m � O 7tfl rZ Z� O 4� oayJill xe�� RECEIVED MAY 2 7 2015 STAFF REPORT CITY CLERK'S OFFICE CITY ADMINISTRATION DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator Originator: Lilia Hernandez, Executive Assis o the City Administrator RE: Report on Docket III Grants Awarded by Vernon CommUNITY Fund Grant Committee Recommendation A. Receive and file this report as it is being provided for informational purposes only pursuant to Section 2.167(e) of the Vernon Municipal Code. Background On May 20, 2015 the Vernon CommUNITY Fund Grant Committee (Grant Committee) held its third grants award meeting. There were five grant applications on the third docket (listed below) and all five were approved by the Grant Committee at the amounts and terms recommended: Original Amount Amount Proposed Applicant Requested Recommended Term East Los Angeles Community $250,000; adjusted to Corporation (ELACC) $50,000 after discussion with JRG $50,000 1 year Eastmont Community Center(ECC) $50,000 $50,000 1 year Family Healthcare Centers of Greater Los Angeles (FHCGLA) $100,000 $60,000 1 year Project Return Peer Support Network(PRPSN) $40,000 $40,000 1 year South Central Los Angeles Regional Center(SCLARC) $250,000 1 $50,000 1 1 year Total $490,000 1 $250,000 Section 2.167(e) of the Vernon Municipal Code requires the Grant Committee Executive Director(City Administrator) to provide the City Council a report of the grant related actions Page 1 of 2 taken by the Grant Committee within 30 days of any regular meeting and within 15 days of any special meeting at which grants are awarded. Fiscal Impact The total recommended grant award amount of $250,000 is included in the 2014-2015 City Budget and is within the recommended quarterly allocation of approximately $250,000 for this fiscal year. Attachment(s) None Page 2 of 2 RECEIVED �® RECEIVED � �of Ve JUN 0 8 2015 4 JUN 018 2015 �'� °' �"' �, � � ot CITY ADMINISTRATION CITY CLERK'S OFFICE FIRE DEPARTMENT Michael A.Wilson,Fire Chief 4305 Santa Fe Avenue,Vernon, California 90058 Telephone (323)583-8811 Fax(323)826-1407 June 8, 2015 Honorable Mayor and City Council City of Vernon Honorable Members: Attached is a copy of the Vernon Fire Department Activity Report which covers the period of May 16, 2015 through May 31, 2015. Respectfully Submitted, Michael A. ilson Fire Chief MAW:ar Fireletnow E fusiveCy IndustriaC VERNON FIRE DEPARTMENT COMPANY ACTIVITIES May 16,2015 to May 31,2015 This Period Last Year This This Year Last Year To Date Period To Date ACTIVITY TYPE FIRE PREVENTION: Regular Inspections (#): 22 681 37 730 Re-Inspections (#): 19 60 12 134 Spec. Haz. Inspections (#): 7 16 1 19 Total Inspections: 48 757 50 883 Total Man Hours: 36 929 50 1254 TRAINING(HOURS) Firefighting 108 835 193 1056 Hazardous Materials 60 305 16 328 Safety 121 1114 228 1390 Apparatus Operations 128 1127 135 1270 Equipment Operations 121 1121 189 1337 CPR 10 48 0 19 First Aid 38 276 20 222 Total Hours: 586 4826 781 5622 PRE-INCIDENT(HOURS): Planning 86 738 171 967 District Familiarization 83 784 47 869 Total Hours: 169 1522 218 1836 PERIODIC TEST (HOURS)- Hose Testing 0 8 0 26 Pump Testing 0 3 0 10 Total Hours: f] 11 0 36 Page 1 PUBLIC SERVICE PROGRAMS (HOURS) School Programs 4 8 14 29 Fire Brigades 0 2 0 13 Emergency Preparedness 19 117 29 145 Total Hours: 23 127 43 187 ROUTINE MAINTENANCE (HOURS Station 119 1097 127 1235 Apparatus 113 1119 129 1256 Equipment 130 1131 128 1274 Total Hours: 362 3347 384 3765 Grand Total Hours: 1176 10762 1476 12700 Tireactivity Page 2 4 VERNON FIRE DEPARTmENT 1rx Type of Incident Report too Total Incidents. 2015 - 56 May 16, 2015 - May 31, 2015 06/08/2015 INCIDENT TYPE E ABDOMINAL PAIN-D""" 1 E ASSAULT VICTIM-D""" 2 E Auto vs Ped 1 E CHEST PAIN-D""" 1 E DIFFICULTY BREATHING-D."" 1 E PSYCH/BEHAVE/SUI ATT-D""" 1 E Sick Person-A 1 E SICK PERSON-D""" 3 E STROKE LESS THAN 2 HRS-C"'" 1 E TC BIKE/MOTORCYCLE-DO" 1 E TRAFFIC COLLISION-D... 15 E TRAUMATIC INJURIES-DO" 2 E UNC PER/FAINTING (NEAR)-D."" 2 F Commercial Fire 1 F Fire Alarm No Reset 3 F Natural Gas Leak - Inside 1 F People Studs in Elevator 1 F Residential Fire 1 F Vehicle Fire 1 F Water Flow Alarm No Reset B F Water Flow Alarm With Reset S S Moveup 2 S Public Assist 1 Incident Type Incident Date PREVENTION FOLLOW-UP? Shift 322 Motor vehicle accident with injuries 05/16/2015 02:24:43 No 321 EMS call, excluding vehicle accident with inju 05/16/2015 10:59:12 No 745 Alarm system activation,no fire,unintentional 05/16/2015 18.27.42 No 324 Motor vehicle accident with no injuries 05/16/2015 20:50:54 No 740 Unintentional transmission of alarm, other 05/18/2015 00:10:46 No 700 False alarm or false call, other 05/18/2015 06:42.27 No 353 Removal of victim(s) from stalled elevator 05/18/2015 06:55:48 No 520 Water problem, other 05/19/2015 10:29:20 No 311 Medical assist, assist EMS crew 05/19/2015 15:19:57 No 324 Motor vehicle accident with no injuries 05/19/2015 21-06-19 No 321 EMS call, excluding vehicle accident with inju 05/20/2015 12:23:58 No 311 Medical assist, assist EMS crew 05/20/2015 16:38:50 No 321 EMS call, excluding vehicle accident with inju 05/21/2015 09:42A1 No 322 Motor vehicle accident with injuries 05/21/2015 15:46:28 No 622 No incident found on arrival at dispatch addr 05/21/2015 17:43:08 No 745 Alarm system activation,no fire,unintentional 05/21/2015 19AT32 No 321 EMS call, excluding vehicle accident with inju 05/21/2015 23:17:47 No 553 Public service 05/22/2015 12:43:29 No 322 Motor vehicle accident with injuries 05/22/2015 13:09:01 No 321 EMS call, excluding vehicle accident with inju 05/22/2015 13:26:07 No 324 Motor vehicle accident with no injuries 05/22/2015 14:58:20 No 322 Motor vehicle accident with injuries 05/22/2015 15:51:47 No 520 Water problem, other 05/22/2015 17:44:55 No 324 Motor vehicle accident with no injuries 05/22/2015 19:35:09 No 322 Motor vehicle accident with injuries 05/22/2015 22A0:32 No 700 False alarm or false call, other 05/23/2015 02:35:34 No 700 False alarm or false call, other 05/23/2015 09:39:34 No 322 Motor vehicle accident with injuries 05/23/2015 13:54:39 No 611 Dispatched & canceled en route 05/23/2015 15:16:58 No 571 Cover assignment, standby, moveup 05/23/2015 1526:36 No 611 Dispatched & canceled en route 05/23/2015 15:37:14 No 321 EMS call, excluding vehicle accident with inju 05/23/2015 16:29:23 No 121 Fire in mobile home used as fixed residence 05/23/2015 17:03.56 No 321 EMS call, excluding vehicle accident with inju 05/23/2015 18:01:09 No 745 Alarm system activation,no fire,unintentional 05/24/2015 06A0:32 No 324 Motor vehicle accident with no injuries 05/24/2015 14:16:03 No 571 Cover assignment, standby, moveup 05/25/2015 05:41:09 No 400 Hazardous condition, other 05/25/2015 06:05:19 No 700 False alarm or false call, other 05/26/2015 11:24:46 No 521 Water evacuation 05/26/2015 13:53:43 No 321 EMS call, excluding vehicle accident with inju 05/26/2015 13:57:22 No 321 EMS call, excluding vehicle accident with inju 05/27/2015 08:43:43 No 324 Motor vehicle accident with no injuries 05/27/2015 09,43:57 No 321 EMS call, excluding vehicle accident with inju 05/27/2015 11:10:46 No f 740 Unintentional transmission of alarm, other 05/27/2015 14AT42 No 735 Alarm system sounded due to malfunction 05/27/2015 15:42:07 No 611 Dispatched & canceled en route 05/27/2015 20:5&07 No 321 EMS call, excluding vehicle accident with inju 05/28/2015 05:06:46 No 324 Motor vehicle accident with no injuries 05/28/2015 06:20:56 No 551 Assist police or other governmental agency 05/28/2015 08:31:55 No 322 Motor vehicle accident with injuries 05/28/2015 12:01:05 No 321 EMS call, excluding vehicle accident with inju 05/29/2015 11:08:14 No 700 False alarm or false call, other 05/29/2015 20:06:43 No 311 Medical assist, assist EMS crew 05/30/2015 01:29:33 No 322 Motor vehicle accident with injuries 05/30/2015 18:41:01 No 700 False alarm or false call, other 05/31/2015 13:44:48 No VERNON FIRE DEPARTMENT Type of Incident Report " kirr# Total Incidents: 2014 = 50 May 16, 2014 - May 31, 2014 06/08/2015 INCIDENT TYPE E Cardiac Arrest/Death-E 1 E FALL VICTIM-1)"` 3 E PSYCH/BEHAVE/SUI ATT-D"' 1 E Seizure/Epileptic/History-A 1 E SICK PERSON-D... 3 E TC BIKE/MOTORCYCLE-D... 2 E TRAFFIC COLLISION-D... 7 E TRAUMATIC INJURIES-D"' 5 E UNC PER/FAINTING (NEAR)-IY" i E UNKNOWN PROBLEM-D— 2 F Commercial Fire 5 F Fire Alarm No Reset 1 F Investigation 4 F Vehicle Fire i F Water Flow Alarm No Reset 4 F Water Flow Alarm With Reset 2 S Moveup 4 S Water Problem 3 VERNON FIRE DEPARTMENT ti Type of Incident Report Total Incidents: 2015 = 562 January 1,2015 - May 31, 2015 oWosnoi$ INCIDENT TYPE INCIDENT TYPE INCIDENT TYPE Area E Hazmat 1 E TRAFFIC COLLISION-D` 97 S Ladder Assist 1 E ABDOMINAL PAIN-D"" 3 E TRAUMATIC INJURIES-D"' 21 S Moveup 15 E ASSAULT VICTIM/SEXUAL-D"` 1 E UNC PER/FAINTING (NEAR)-D6'- 19 S Open Hydrant 2 E ASSAULT VICTIM-1)"' 9 E UNKNOWN PROBLEM-D*" 28 S Public Assist 4 E Auto vs Ped 4 F Apartment Fire 4 S Standby 1 E Back Pain-A 1 F Arching Wires 1 S Water Problem 10 E BACK PAIN-D 4 F Auto vs Structure 2 U River Rescue 1 E CHEST PAIN-DO** 16 F Commercial Fire B E DIABETIC-D"" 1 F Dumpster Fire 1 E DIFF BREATHING/ASTHMA-D"' 3 F Electrical Short 1 E DIFFICULTY BREATHING-D... 15 F Fire Alarm No Reset 44 E FALL VICTIM-D`"" 13 f Fire Alarm With Reset 12 E FALL/JUMPER-D"" 1 F Grass Fire 2 E GUN SHOT WOUND-DO" 1 F Haz Mat - Full 1 E HAZMAT/CHEMICAL•D"' 1 F Hazmat - Smalll 1 E HAZMAT/UNKNOWN-D"' 1 F Investigation 16 E HEART ATTACK-D"' 1 F Natural Gas Leak - Inside 3 E HEMORRHAGE/CUT-D"' 4 F Natural Gas Leak - Outside 2 E INGESTION-D"' 1 F People Stuck in Elevator 1 E PSYCH/BEHAVE/SUI ATT-D""" 6 F Residential Fire 3 E SEIZURE/EPILEPTIC/MIST-DO''1 3 F Rubbish Fire 3 E SEIZURE-D"` 6 F Sheared Hydrant 1 E Sick Person-A 1 F Smoke 2 E Sick Person-C 1 F Structure Fire 6 E SICK PERSON-D' 29 F Vehicle Fire 6 E STROKE LESS THAN 2 HRS-C"' 1 F Vehicle Leaking Gas 1 E STROKE-C"' 1 F Vehicle Overturned 1 E TC BIKE/MOTORCYCLE-D"' 6 F Water Flow Alarm No Reset 73 E TC OVERTURNED-D"' 1 F Water Flow Alarm With Reset 29 E TC with Trapped People 2 F Wires Down 1 VERNON FIRE DEPARTMENT" ti Type of Incident Report tv Total Incidents: 2014 = 519 January 1, 2014- May 31, 2014 06/08/2015 INCIDENT TYPE INCIDENT TYPE INCIDENT TYPE E Abdominal Pain-A 1 E SICK PERSON-D"' 28 F Smoke 1 E ABDOMINAL PAIN-1)"' 10 E STROKE-C*" 1 F Strike Team 3 E ALLERGIC REACTION-D... 1 E TC BIKE/MOTORCYCLE-D"' 9 F Structure Fire 6 E ANIMAL BITE-D"' 1 E TC EJECTION-D"' 1 F Vehicle Fire 7 E ASSAULT VICTIM/SEXUAL-D""' 1 E TC OVERTURNED-D"' 2 F Vehicle Leaking Gas 1 E ASSAULT VICTIM-1)' " 5 E TC with Trapped People 2 F Vehicle Overturned 2 E Auto vs Ped 3 E TRAFFIC COLLISION-D"' 74 F Water Flow Alarm No Reset 45 E Back Pain-A 1 E Traumatic Injuries-B 1 F Water Flow Alarm With Reset 32 E Cardiac Arrest/Death-E 1 E TRAUMATIC INJURIES-D 13 F Wires Down 2 E Chest Pain-C 1 E UNC PER/FAINTING (NEAR)-D"' 13 5 Ladder Assist 1 E CHEST PAIN-D"" 13 E UNKNOWN PROBLEM-1)'" 25 5 MONTEBELLO REQUEST 4 E DIABETIC-D... 4 F Apartment Fire 1 S Moveup 12 E DIFF BREATH ING/ASTHMA-D'"' 4 F Auto vs Structure 4 S People Stuck in Elevator 1 E DIFFICULTY BREATHING-D..' 6 F Auto vs Train 1 S Public Assist 2 E FALL VICTIM-DO"" 15 F Blown Transformer 2 S Water Problem 6 E FALL/STILL ON GROUND-D."' 1 F Commercial Fire 16 U USAR-A 1 E HAZMAT/CHEMICAL-D""" 1 F Electrical Short 2 U USAR-BELOW GROUND-D""" 1 E HEADACHE-C""" 2 F Explosion 1 E HEART ATTACK-D"'" 6 F Fire Alarm No Reset 53 E HEAT EXPOSURE-D"' 1 F Fire Alarm With Reset B E Hemorrhage/Cut-B 1 F Gas Spill 1 E HEMORRHAGE/CUT-D'" 2 F Grass Fire 1 E INGESTION-1)"I 1 F Haz Mat - Full 2 E MATERNITY-DO" 2 F Investigation 19 E Psych/Behave/Sui Att-A 1 F Natural Gas Leak - Inside 1 E PSYCH/BEHAVE/SUI ATT-D"" 1 F Natural Gas Leak - Outside 2 E Seizure/Epileptic/History-A 1 F Odor Investigation 4 E Seizure-A 1 F Residential Fire 2 E SEIZURE-D"'" 9 F Rubbish Fire 4 E Sick Person-A 1 F Sheared Hydrant 1 r% e eta'4;i IKLJ Health and Environmental Control Department DECEIVED JUN 0 8 2015 Memo CITY ADMINISTRATION To: Mark Whitworth,City Administrator From: Leonard Grossberg,Director/Health Officer Date: June 8,2015 Re: Transmittal of Health&Environmental Control Department Monthly Report I am forwarding the attached subject report for May 2015 for submission to the City Council. I am requesting that the report be placed on the normal City Council agenda. Please let me know if you need additional information. Attachment 9cLg:/mydoc/2/1 D/monthly reports/City Admin Transmittal Monthly Report May 2015 HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT Mary 2015 MONTHLY REPORT IFF J� Tom* all, Ar 1 Leonard Grossberg, Director 1 Health Officer HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT MONTHLY REPORT May, 2015 HAZARDOUS MATERIALS CONTROL Hazardous Materials activities in May were varied and included reviewing and approving "California Environmental Reporting System" (CERS) submittals. Most facilities are in compliance with CERS reporting and submittals and we are in the process of reviewing and accepting the submittals pending an on-site visit. In May, ongoing environmental assessment/remediation activities continued at several sites including: BSH / Thermador on District Blvd., Exide Technologies on Indiana Street, Vernon Sanitation on Alcoa, Pechiney on Fruitland Ave., Karney Bloom Properties on 371h Street, Axex, Inc. on Hampton Ave., and Service Oil on Atlantic Blvd. Chief Deputy Director David Le Duff continues to work towards the implementation of CERS by coordinating with Decade personnel, and developing new CUPA inspection report forms in an effort to become more consistent with other agencies across California. Director Leonard Grossberg participated in a Community Advisory Group meeting held at the Resurrection Church in East Los Angeles sponsored by the Department of Toxic Substances Control (DTSC) and the Air Quality Management District (AQMD) to discuss the pending review of Exide Technologies closure documents prior to the official public comment period. The documents include the CEQA review, Environmental Impact Report (EIR), and the Closure Plan. Monthly scoping and planning meetings are scheduled until the plans are all approved and the closure activities are started. After that, updates and status meetings will be held as needed. Senior Environmental Specialist Jerrick Torres responded to investigate a spill of sodium hypochlorite at Owens Brockway. The spill made it to the storm water drain, but was stopped and cleaned-up before it reached the Los Angeles River. A review of emergency response procedures is being conducted as to the actions by the company. UNDERGROUND TANKS No permitted underground tanks were removed during the month of May. Several unregistered tanks were discovered during grading activities on the former Thermador site, which appeared to have been filled-in-place and abandoned 40-50 years ago. The tanks were removed and we are awaiting lab results from surrounding soil samples to make a final determination of closure. 2 In addition, Senior Environmental Specialist Linda Johnson reviewed a closure report for Vernon Sanitation concerning a closed underground storage tank and clarifier unit removal. Senior Environmental Specialist Linda Johnson also observed Monitoring and Certification annual tests for Bandini Truck Terminal, and Robertson's Ready Mix. FOOD PROGRAM Activities in May centered on inspections, plan checks, and consultations of food facilities. The presence of food processing facilities in Vernon continues an upward trend that began about ten years ago. Senior Environmental Specialist Lyndon Ong Yiu conducted plan check reviews on 2 new food processing facilities, and is developing a new "commissary facility plan-check guide" through the Food Technical Advisory Committee (FTAC). Lyndon and Erik Cheng visited an existing facility in the City of Commerce as part of the training program. In addition, Mr. Ong Yiu investigated two complaints in May of possible unlicensed food sales activity. Finally, Mr. Ong Yiu, issued a Temporary Food Facility Permit to Barksdale Inc. for an Employee Appreciation Event, and also approved a catering permit for a Film Permit in Vernon. STORMWATER PROTECTION: Senior Environmental Specialist Jerrick Torres conducted several storm water construction inspections including 5201 District Blvd., 5275 District Blvd., 5209 district Blvd., 2800 Ayers Ave., and 3305 Bandini Blvd. Facilities that are under construction, must adhere to strict storm water controls during rain events, which occurred in May. Senior Environmental Specialist Jerrick Torres also responded to investigate a sewage spill at 4731 Fruitland Ave. requiring the removal and clean-up of waste materials from the public right- of-way. 3 ENVIRONMENTAL AND PUBLIC HEALTH PROTECTION Fourteen water samples were collected from the three potable water supply systems within the City. One of the samples tested positive for Total Coliforms and was re-tested. The resulting test returned negative, and the remaining samples all met the State standards for potability and were negative for e-coli and total coliforms (indicators of possible contamination). May was instrumental in staff participating in numerous training and education symposiums including; Food Industry Board Roundtable (FIBR) Meet the Inspector Forum, Mobile Food Facilities Group, Vector Control, Underground Storage Tank Technical Advisory Group, Local Enforcement Agency Roundtable, Exide Community Advisory meeting, and the Southern California CUPA Forum meeting. Chief Deputy Director David LeDuff, Senior Environmental Specialist Jerrick Torres and Environmental Specialist Erik Cheng conducted a mosquito survey of the L. A. River. While minor mosquito activity was observed, control measures using physical means were implemented to eliminate standing water where the mosquitoes were breeding. Senior Environmental Specialist Lyndon Ong Yiu investigated a sewage spill at District and Atlantic Blvd. due to illegal dumping over the weekend. Cleanup efforts were coordinated with the Public Works Dept., and re-occurring spills are being investigated with the assistance of the Vernon Police Dept. Director Leonard Grossberg prepared an annual budget presentation for the City Council to reflect past and future trends within the department. The report included data from the 2014 fee study which indicated that one revenue source needed to be adjusted to correct an insufficient revenue stream. The new budget requested included the addition of a new Full Time Employee (FTE) starting mid-fiscal year. CALIFORNIA DROUGHT 2015 LOS ANGELES—For more than a century, California has been the state where people flocked for a better life— 164,000 square miles of mountains, farmland and coastline, shimmering with ambition and dreams, money and beauty. It was the cutting-edge symbol of possibility: Hollywood, Silicon Valley, aerospace, agriculture and vineyards. 4 But now a punishing drought—and the unprecedented measures the state announced last week to compel people to reduce water consumption—is forcing a reconsideration of whether the aspiration of untrammeled growth that has for so long been this state's driving engine has run against the limits of nature. The 25 percent cut in water consumption ordered by Gov. Jerry Brown raises fundamental questions about what life in California will be like in the years ahead, and even whether this state faces the prospect of people leaving for wetter climates—assuming, as Mr. Brown and other state leaders do,that this marks a permanent change in the climate,rather than a particularly severe cyclical drought. This state has survived many a catastrophe before—and defied the doomsayers who have regularly proclaimed the death of the California dream—as it emerged, often stronger, from the challenges of earthquakes,an energy crisis and, most recently, a budgetary collapse that forced years of devastating cuts in spending. These days,the economy is thriving,the population is growing,the state budget is in surplus, and development is exploding from Silicon Valley to San Diego;the evidence of it can be seen in the construction cranes dotting the skylines of Los Angeles and San Francisco. But even California's biggest advocates are wondering if the severity of this drought,now in its fourth year, is going to force a change in the way the state does business. Can Los Angeles continue to dominate as the country's capital of entertainment and glamour, and Silicon Valley as the center of high tech, if people are forbidden to take a shower for more than five minutes and water bills become prohibitively expensive?Will tourists worry about coming?Will businesses continue their expansion in places like San Francisco and Venice? "Mother Nature didn't intend for 40 million people to live here," said Kevin Starr, a historian at the University of Southern California who has written extensively about this state. "This is literally a culture that since the 1880s has progressively invented, invented and reinvented itself. At what point does this invention begin to hit limits?" California,Dr. Starr said, "is not going to go under, but we are going to have to go in a different way." An estimated 38.8 million people live in California today, more than double the 15.7 million people who lived here in 1960, and the state's labor force exploded to 18.9 million in 2013 from 6.4 million people in 1960. California's $2.2 trillion economy today is the seventh largest in the world, more than quadruple the $520 billion economy of 1963, adjusted for inflation. The median household income jumped to an estimated $61,094 in 2013 from $44,772 in 1960, also adjusted for inflation. "You just can't live the way you always have," said Mr. Brown, a Democrat who is in his fourth term as governor. "For over 10,000 years, people lived in California, but the number of those people were never more than 300,000 or 400,000,"Mr.Brown said. "Now we are embarked upon an experiment that no one has ever tried: 38 million people,with 32 million vehicles, living at the level of comfort that we all strive to attain. This will require adjustment. This will require learning." This disconnect,as it were, can be seen in places like Palm Springs, in the middle of the desert,where daily per capita water use is 201 gallons—more than double the state average. A recent drive through the community offered a drought-defying tableau of burbling fountains, flowers, lush lawns, golf courses and trees. The smell of mowed lawn was in the air. But the drought is now forcing change in a place that long identified itself as"America's desert oasis." Palm Springs has ordered 50 percent cuts in water use by city agencies, and plans to replace the lawns and 5 annual flowers around city buildings with native landscapes. It is digging up the grassy median into town that unfurled before visitors like a carpet at a Hollywood premiere. It is paying residents to replace their lawns with rocks and desert plants, and offering rebates to people who install low-flow toilets. At the airport that once welcomed winter-chilled tourists with eight acres of turf and flowers, city officials are in the early stages of replacing the grass with cactus, desert bushes and paloverde trees. The city had hoped to replace the entire lawn, but the project's $2 million price tag forced it to begin instead with three acres, said David Ready,the city manager. "Years ago the idea was, come to Palm Springs, and people see the grass and the lushness and the green," Mr. Ready said. "We've got to change the way we consume water." Fallow Fields Other places face different threats to their way of life. Mayor Robert Silva of Mendota, in the heart of the agricultural Central Valley, said unemployment among farmworkers had soared as the soil turned to crust and farmers left half or more of their fields fallow. Many people are traveling 60 or 70 miles to look for work, Mr. Silva said, and families are increasingly relying on food donations. "You can't pay the bills with free food,"he said. "Give me some water, and I know I can go to work, that's the bottom line." Richard White, a history professor at Stanford University, said the scarcity of water could result in a decline in housing construction, at a time when there has been a burst of desperately needed residential development in cities like Los Angeles and San Francisco. "It's going to be harder and harder to build new housing without an adequate water supply,"he said. "How many developments can you afford if you don't have water?" Greg Smith, 51, a web developer who works from his home in Escondido, said he was considering moving to Washington State because of his distress at what he described as the state's slow response to the drought. "If this gets out of control, I'll probably end up leaving,"Mr. Smith said. "This has been a problem for as long as I've been alive." "I've watched this state get trampled by developers,"he added. "They keep building homes, but where's the water going to come from?" The governor's executive order mandates a 25 percent overall reduction in water use throughout the state, to be achieved with varying requirements in different cities and villages. The 400 local water supply agencies will determine how to achieve that goal; much of it is expected to be done by imposing new restrictions on lawn watering. The 25 percent reduction does not apply to farms,which consume the great bulk of this state's water. State officials signaled on Friday that reductions in water supplies for farmers were likely to be announced in the coming weeks, and there is also likely to be increased pressure on the farms to move away from certain water-intensive crops—like almonds. A New Normal Mayor Eric Garcetti of Los Angeles, pointing to Mr. Brown's executive order and his own city's success in reducing water consumption, said he was confident that the state would find ways to deal with an era of reduced water supplies, in a way that would permit it to continue to grow and thrive. 6 "We have to deal with a new normal,"Mr. Garcetti said. "That said, do we have enough water to sustain life here?Absolutely. Do we have enough water to grow economically?Absolutely." "Cities that are much drier and truly desert—Phoenix, Las Vegas—have shown the ability to have economic growth,"he said. Allan Zaremberg,president of the California Chamber of Commerce, rejected the idea that the drought and the state's response to it would prompt industries to move away or stop adding jobs. "The rest of the economy is managing it, learning how to deal with it,"he said. This is hardly the first crisis California has faced; there has always been a tension between the natural beauty and delights of living in California and the external threats,be they the dizzying ups-and-downs of the state budget,the rolling blackouts during the energy crisis in 2000 and 2001,the earthquakes or periodic droughts. News flash to Mr. Post who plans to keep on watering his property and doesn't want rates to increase- don't expect the drought to end in... "People on the East Coast always want to say that the glow of California is gone," said Felicia Marcus, the head of the State Water Resources Control Board,which is putting into effect the 25 percent reduction in water use ordered by Mr. Brown last week. "It isn't. I don't see it as any diminishment about our prospect of growth. There has to be a more evolved way about using the resources we have. We have a long way to go before we have tapped out our resources." The critical question is the extent to which Mr. Brown has succeeded in persuading people here to shake long-held habits and assumptions. "I'm not going to stop watering," said Matthew Post, 45, referring to the gardens around his Benedict Canyon home. "The state does not know how to arrange the resources they have, and so we have to pay for it,"he said. "They say that they will raise the prices because there is a drought, but when the drought ends,will they reduce the prices?" Much like the Gold Rush more than 150 years ago or the rise of Silicon Valley,the assumption of cheap and abundant water has been a crucial part of California's identity, history and economy. And until recently, it seemed that the California dream was sustainable: booming cities, wide lawns in the suburbs, green golf courses in an otherwise parched landscape and, above all,a vibrant agricultural sector in places not much wetter than a desert. Although there were serious droughts in the mid-1970s and late 1980s,the current water shortage and last week's executive order are a turning point for the state,and the West more generally, water experts say. "The idea, at least until the latter part of the 20th century, was that water would be cheap and plentiful and the focus was on developing new supplies," said Heather Cooley,water program director for the Pacific Institute, an environmental research group based in Oakland. "Folks realize we have now reached the limits of supply, so the focus is on demand." While the mandatory cuts in home water use are the first ever,efficiency has been slowly gaining ground in recent decades. Total water use in Los Angeles, San Francisco and many other urban areas is now lower than it was in 1980, despite the huge economic growth and population increases. The latest restrictions represent a cultural change, as well as a lifestyle one, going well beyond taking shorter showers or forgoing the Sunday afternoon ritual of hosing down the family car. Half of residential use is outdoors, primarily lawns, Ms. Cooley said. "And what Californians see as beautiful," she said, "has been a lawn that has been the standard for front yards and backyards." Now,with utilities paying people to replace thirsty traditional grass turf with water-sipping native plants and other drought-tolerant shrubbery, long-held aesthetics are shifting. "This will change what Californians see as beautiful," she said. But even a significant drop in residential water use will not move the consumption needle nearly as much as even a small reduction by farmers. Of all the surface water consumed in the state, roughly 80 percent is earmarked for the agricultural sector. "The big question is agriculture, and there are difficult trade-offs that need to be made,"said Katrina Jessoe, assistant professor of agricultural and resource economics at the University of California, Davis. Bill Melzer, 72, a bond broker walking his dog on a sunny morning in Golden Gate Park in San Francisco, said he was worried about the drought, about the prospect of higher fines for using too much water and about what might happen to the agriculture industry. But he said he was not worried about the future of his state. "The dream of California now is probably different than back in the 1960s,"he said. "Now it's more financial opportunity. I think before it was what we're looking at now—great weather,beach weather, tremendous diversity of lifestyle. Really, if you cannot find your lifestyle in this state,there is something wrong with you." Dr. Starr,the University of Southern California historian, said the crisis would force California to do what was needed to carry on. "Our destiny is not just to be a fantasy place,"he said. "As much as we enjoy the good life in California,we have to come to terms with Mother Nature, with our and environment." "Every time California has a problem—we ran out of electricity in the early 2000s,then we ran out of money, and now we are running out of water—people say California is over,"Dr. Starr said. "It's not over. It's too important a part of American culture to be over. But it will change itself." Adam Nagourney and Jack Healy reported from Los Angeles, and Nelson D. Schwartz from New York. Emma G. Fitzsimmons contributed reporting from San Francisco, and Ronnie Cohen from San Anselmo, Calif. 9cLG:MyDocs/Z/Health Dept/Monthly Reports/May 2015.doc 8 �( ►, RECEIVED J UN 01 2015 CITY or� ITY ADMINISTRATION � �r 30IJ10 S,�1 M A110 ' ` POLICE DEPARTMENT 51 Z i 0 N f l f Daniel Calleros,Chief of Police QA I 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)587-5171 Fax(323)826-1481 June 1, 2015 Honorable City Council City of Vernon Vernon, California Honorable Members: Attached are copies of the Vernon Police Department Activity Log and Statistical Summary of Arrest and Activities which cover the period from 12:01 a.m., May 16, 2015 up to and including midnight of May 31, 2015. Respectfully submitted, VERNON POLICE DEPARTMENT DANIEL CALLEROS CHIEF OF POLICE DC/ar Ezcfusively IndustAd VERNON POLICE DEPARTMENT Department Activity Report First Date: 05/16/2015 Jurisdiction: VERNON Last Date: 05/31/2015 Department Complaint All Units Primary Unit Type Description VPD 10-6 OFFICER IS 10-6 C7,961,962,10-10,WASH, EQUIPR 133 126 10-96H PICK UP THE JAIL PAPER WORK FROM HP JAIL 2 2 10-96M 10-96 MARY(MAIL DETAIL) 5 5 20001 INJURY HIT AND RUN 2 1 20002 NON-INJURY HIT AND RUN 13 5 20002R NON-INJURY HIT AND RUN REPORT 5 3 211 S SILENT ROBBERY ALARM 15 4 242 BATTERY 12 4 261 R RAPE REPORT 2 1 415 DISTURBING THE PEACE 15 7 417 BRANDISHING A WEAPON 5 1 422 TERRORIST THREATS 3 1 459A AUDIBLE BURGLARY ALARM 98 55 459R BURGLARY REPORT 2 1 459S SILENT BURGLARY ALARM 2 1 459VR BURGLARY TO A VEHICLE REPORT 2 2 470R FORGERY REPORT 1 1 484R PETTY THEFT REPORT 5 4 487 GRAND THEFT 5 1 487R GRAND THEFT REPORT 2 1 503R EMBEZZLEMENT REPORT 1 1 586 PARKING PROBLEM 13 11 586E PARKING ENFORCEMENT 3 3 594R VANDALISM REPORT 4 3 602 TRESPASS 12 4 602R TRESPASS REPORT 1 1 647F DRUNK IN PUBLIC 3 1 901 UNKNOWN INJURY TRAFFIC COLLISION 4 1 901T INJURY TRAFFIC COLLISION 15 6 901TR INJURY TRAFFIC COLLISION REPORT 4 2 902T NON-INJURY TRAFFIC COLLISION 51 29 902TR NON-INJURY TRAFFIC COLLISION REPORT 2 1 909T TRAFFIC HAZARD 5 3 911 911 MISUSE/HANGUP 5 3 911A CONTACT THE REPORTING PARTY 11 8 920PR LOST PROPERTY REPORT 1 1 925 SUSPICIOUS CIRCUMSTANCES 16 9 927 UNKNOWN TROUBLE 1 1 A459V ATTEMPT AUTO BURGLARY 4 1 AB109 PROBATION/PAROLE COMPLIANCE CHECKS 3 1 ASTVFD ASSIST VERNON FIRE DEPARTMENT 16 8 BARCK BAR CHECK 3 1 BOSIG BROKEN SIGNAL OR LIGHT 2 1 BOVEH BROKEN DOWN VEHICLE 12 9 CITCK CITATION CHECK 10 9 CIVIL CIVIL MATTER 5 3 COP COP DETAIL 3 2 DIET DETECTIVE INVESTIGATION 16 5 0610112015 08:19:36 Page l of 2 VERNON POLICE DEPARTMENT Department Activity Report First Date: 06/16/2015 Jurisdiction: VERNON Last Date: 05/31/2015 Department Complaint All Units Primary Unit Type Description VPD DETAIL DETAIL 5 5 DPTAST DEPARTMENTAL ASSIST 8 5 DUI DRIVING UNDER THE INFLUENCE 5 3 FILING OFFICER IS 10-6 REPORT WRITING 44 42 FOUND FOUND PROPERTY REPORT 1 1 FU FOLLOW UP 15 11 GTAR GRAND THEFT AUTO REPORT 3 2 HBC HAILED BY A CITIZEN 11 6 ID THEFT RPT IDENTITY THEFT REPORT 1 1 ILLDPG RPT ILLEGAL DUMPING REPORT 1 1 JAILPANIC TEST THE JAIL PANIC ALARM BUTTON 1 1 k9 TRAINING K9 TRAINING REMINDER,OBTAIN LOCATION 2 2 LOCATE LOCATED VERNON STOLEN VEHICLE 1 1 LOJACK LOJACK HIT 1 1 LPR LICENSE PLATE READER 6 2 MR60 MISC REPORT 2 2 PANIC ALARM PANIC ALARM/DURESS ALARM 5 2 PAPD PUBLIC ASSIST-POLICE 3 2 PATCK PATROL CHECK 131 104 PEDCK PEDESTRIAN CHECK 50 30 PLATE LOST OR STOLEN PLATES REPORT 1 1 PRSTRAN PRISONER TRANSPORTED 6 6 REC RECOVERED STOLEN VEHICLE 9 5 RECDALARM TEST THE RECORDS ALARM 1 1 RECKLESS DF RECKLESS DRIVING(23103) 5 2 REPO REPOSSESSION 5 4 RR RAIL ROAD PROBLEM 3 2 SPEED SPEED CONTEST OR SPEEDING(23109) 12 5 SUBPOENA SUBPOENA SERVICE 1 1 TRAFFIC STOI TRAFFIC STOP 229 179 VCK VEHICLE CHECK 98 65 VEH RELEASE VEHICLE RELEASE 7 7 VIDEOCHECK VIDEO EQUIPMENT CHECK(10-96 V) 2 2 WARRANT WARRANT ARREST 3 2 WELCK WELFARE CHECK 5 3 WRNTSVC WARRANT SERVICE 5 Department: 1243 868 Overall: 1243 869 0610112015 08:19:36 Page 2 of 2 VERNON POLICE DEPARTMENT Police Activity Report Period Ending: 05/31/15 TRAFFIC COLLISIONS NO. PROPERTY RECOVERED TOTAL 14 VEHICLES: $98,300.00 NON-INJURY 7 INJURY 7 Pedestrian Fatalities City Property Damage 1 Hit& Run (Misdemeanor) 2 Hit & Run (Felony) 1 Persons Injured 9 VEHICLES STORED PROPERTY RECOVERED FOR Unlicensed Driver 22 OTHER DEPARTMENTS Abandoned/Stored Vehicle 15 VEHICLES: $0.00 Traffic Hazard CITATIONS Citations Iss (Prisoner Release) 10 Citations Iss (Moving) 110 Citations Iss (Parking) 21 Citations Iss (Total) 141 Hazardous 51 Non-Hazardous 59 Other Violations CASES CLEARED BY ARREST AR15-120 CR15-0846 11364 H&S AR15-121 CR15-0851 11377 H&S AR15-122 CR15-0853 10851 VC AR15-124 CR15-0865 242 PC AR15-125 CR15-0866 11364 H&S AR15-127 CR15-0892 472 PC AR15-129 CR15-0897 487(A) PC AR15-133 CR15-0925 23109(A) PC VERNON POLICE DEPARTMENT REPORT FOR PERSONS ARRESTED PERIOD ENDING 05/31/15 ADULT FELONY ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL ASSAULT WITH A DEADLY WEAPON _ ,BURGLARY ,CRIMINAL THREATS EMBEZZLEMENT FORGED OFFICIAL SEAL 1 1 GRAND THEFT 1 1 POSS. CONTROLLED SUBSTANCE 1 1 FOSS. STOLEN PROPERTY RAPE ROBBERY _ VEHICULAR MANSLAUGHTER VEHICLE THEFT 1 1 TOTAL FELONY ARRESTS 3 1 4 ADULT MISDEMEANOR ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL BATTERY 1 1 CRIMINAL THREATS DRIVING ON A SUSPENDED LICENSE DRIVING UNDER THE INFLUENCE 2 1 3 DRUNK IN PUBLIC ILLEGAL SPEED CONTEST _ 1 1 POSS. NARC. PARAPHERNALIA 2 2 TRESPASSING VANDALISM WARRANTS (6ENCH/TRFC'1 4 1 4 WARRANTS (FOREIGN) 3 1 4 TOTAL MISD. ARRESTS 13 3 1 16 JUVENILES DETAINED --- FELONY AND MISDEMEANOR MALE FEMALE TOTAL BURGLARY PETTY THEFT POSS. STOLEN PROPERTY VANDALISM VEHICLE THEFT TOTAL JUVENILES DET. 0 L 0 0 TOTAL FELONY ARRESTS (ADULT)TO DATE: _ 39 TOTAL MISDEMEANOR ARRESTS (ADULT)TO DATE: 85 TOTAL JUVENILES DETAINED (FELONY AND MISDEMEANOR)TO DATE: 0 TOTAL ARRESTS AND DETAINED JUVENILES (FELONY AND MISDEMEANOR)TO DATE: 124 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 06/16/2015 Jurisdiction: VERNON Last Date: 05/16/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time _ Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508327 RPT 05/16/2015 01:53:46 SOEX WEST USA Department OCA Number RMS Juris VS 459A 3280 E 26TH,VERNON VPD CR20150837 CA0197300 1015 VPD HERRERA,GUSTf "1 L2 01:55:05 01:55:44 01:58:55 03:17:41 VPD HERNANDEZ,MIG 1 L3 01:55:06 01:55:51 02:00:17 03:48:34 20150508328 RPT 05/16/2015 02:23:58 TADIN HERB&TEA Departmem OCA Number RMS Juris 20001 SLAUSON//DOWNEY,VERNON VPD CR20150838 CA0197300 VPD SWINFORD,PHILL *1L1 02:24:48 02:25:06 02:27:40 03:10:51 VPD ESTRADA,IGNACI 1S1 02:30:44 02:58:48 20150508329 RPT 05/16/2015 02:28:22 MELISSAS Department OCA Number RMS Juris ASST 20002R 5325 S SOTO,VERNON VPD CR20150839 CA0197300 VPD ESTRADA,IGNACI "1S1 02:59:14 02:59:14 03:00:56 03:28:39 VPD SWINFORD,PHILL 1L1 04:29:24 03:10:59 03:13:50 04:57-15 VPD HERNANDEZ,MIG 10 04:42:15 04:5T15 05/17/2015 01:31:04 Page 1 of 1 'VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/17/2015 Jurisdiction: VERNON Last Date: 05/17/2016 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508389 RPT 05/1712015 02:09:28 EVA Departmem OCA Number RMS Juris VI 902T 4651 BANDINI BL,VERNON VPD CR20150840 CA0197300 1015 CITY VPD ESTRADA,IGNACI *1S1 02:10:00 02:15:39 02:15:40 03:30:13 VPD HERNANDEZ,MIG 1 L1 02:12:07 02:15:41 04:32:57 VPD SWINFORD,PHILL 11-3 02:12:09 02:28:20 20150508402 RPT 05/17/2015 08:30:24 uris 1015 WRNTSVC 6522 TEMPLETON ST,HUNTINGTON PARK VPDartmem CR20 50u8441 �597300 VPD VILLEGAS,RICHA *2W8 09:56:44 08:30:32 09:40:46 09:45:50 10:00:05 20150508405 1015 2A8 05/17/2015 09:23:49 uris RPT PATCK 4550 MAYWOOD AV,VERNON DPDartmem OCA 00 5Number �197300 PRD VPD VALENZUELA,FEI *21-12 09:23:49 10:15:10 09:32:01 VPD RAMOS,JOSE/OU 2A8 13:52:18 09:56:28 10:11:33 10:34:02 15:04:21 VPD ZOZAYA,OSCAR 21-11 09:23:52 10:15:12 09:32:01 20150508417 1015 05/17/2015 14:17:26 WRNTSVC 7022 MALBRISA ST,HUNTINGTON PARK Departmem OCA Number RMS Jur0 RPT VPD CR20150843 CA0197300 VPD VILLEGAS,RICHA *2W8 14:17:26 15:14:11 20150508428 RPT 05/17/2015 18:07:00 REHRIG GTAR 4010 26TH,VERNON Departmem OCA Number RMS Jurrs VPD CR20150844 CA0197300 VPD ZOZAYA,OSCAR *21-11 18:09:30 18:09:55 18:12 40 VPD RAMOS,JOSE/OU 2A8 18:12:38 18:23:22 18:48:01 20150508439 0511812015 04:35:25 Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 05/17/2015 Jurisdiction: VERNON Last Date: 05/17/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508439 RPT 05/17/2015 22:10:42 VANESSA uris 20002 S ATLANTIC BL//BANDINI BL,VERNON Departmen+ OCA Number RMS J VPD CR20150845 CA0197300300 VPD VELASQUEZ,RICF *1L9 22:12:09 22:12:36 22.59:34 VPD MADRIGAL,MARI/ 11_11 22:13:39 22:18:26 23:02:47 20150508443 1015 05/17/2015 22:5BA3 RPT PEDCK 3031 E VERNON AV,VERNON PDartmeir� CR20 50846Num6er CCA0 g7300 VPD HERNANDEZ,EDV '1 L12 22:59:44 00:43:43 VPD MADRIGAL,MARII 1L11 23:08:55 00:15:25 VPD VELASQUEZ,RICF 1L9 23:00:20 23 00:20 23:03:57 00:43:43 05118l2015 04:35:2: .-Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/18/2015 Jurisdiction: VERNON Last Date: 05/18/2015 Call Number Disp Ten Received Caller Code Com_nlaint Address Unit Time Den Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508456 VREC 05/18/2015 03:54:56 LOCATE VAIL AVE//APPIAN WAY,MONTEBELLO VPD DISPATCH *DISP 03:57:46 04:10:32 20150508469 VI 05/18/2015 07:55:26 Departmem OCA Number RMS Juris CITE TRAFFIC STOP E VERNON AV//SANTA FE AV,VERNON VPD CR20150847 CA0197300 RPT VPD GAYTARLORENZ *21-12 07:55:26 08:17:01 20150508470 RPT 05/18/2015 08:22:13 ALKAM FASHION Departmem OCA Number RMS Juris 484R 5107 S DISTRICT BL,VERNON VPD CR20150849 CA0197300 VPD VALENZUELA,FEI *21-11 08:29:52 08:35:41 09:20:15 20150508471 VS 05/18/2015 08:29:05 Departmem OCA Number RMS Juris CITE VCK 2141 E 52D,VERNON VPD CR20150848 CA0197300 RPT VPD GAYTAN,LORENZ *21-12 08:29:05 08:49:04 20150508491 RPT 05/18/2015 11:09:28 VCK FRUITLAND AV//EVERETT CT,VERNON Departmem CR2 Number RMS Juris VS VPD R20150850 CA0197300 CITE VPD GAYTARLORENZ *21-12 11:09:28 11:28:16 20150508494 CITE 05/18/2015 11:38:09 VCK E 55TH//SANTA FE AV,VERNON Departmem OCA Number RMS Juris VI VPD CR20150852 CA0197300 VPD GAYTAN,LORENZ *21-12 11:38:09 11:55:00 20150508497 Page 1 of 3 0512412015 00:40:57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Dale: 05/18/2015 Jurisdiction: VERNON Last Date: 05/18/2015 Call Number Disp Ten Received Caller Code Comn_ laint Address Uffit Time Den Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508497 VM 05/18/2015 12:51:56 VI BOVEH 3030 S ATLANTIC BL,VERNON VPD ZOZAYA,OSCAR "2L10 12:51:56 13:21:35 20150508498 RPT 05/18/2015 12:52:27 REC MAYWOOD AV//FRUITLAND AV,VERNON Departmem OCA Number RMS Ju00 1015 VPD CR20150853 CA0197300 VS VPD GAYTAN,LOREN2 "2L12 12:52:59 13:38:02 14:00:02 VPD VALENZUELA,FEI 201 12:56:15 12:57:21 13:33:06 VPD RAMOS,JOSE 2L8 12:56:51 12:57:46 15:30:20 VPD LANDA,RAFAEL 2L9 12:54:30 12:57:20 15:48 37 20150508501 CITE 05/18/2015 14:02:38 Departmem OCA Number RMS Juris VI TRAFFIC STOP MAYWOOD AV//FRUITLAND AV,VERNON VPD CR20150854 CA0197300 SRVD VPD GAYTAN,LOREN2 `21-12 14:02:38 14:33:11 20150508502 REPO 05/18/2015 14:48:54 Departmem OCA Number RMS Juris REPO 5601 DOWNEY RD,VERNON VPD CR20150855 CA0197300 VPD CALLEROS,DANIE `5C14 14:58:04 15:10:02 VPD RECORDS BURFJ RECD 15:10:15 15:10:21 20150508504 RPT 05/18/2015 15:20:53 MARISOL RAYA Departmem OCA Number RMS Juris GTAR 2300 E 52D,VERNON VPD CR20150856 CA0197300 VPD QUINONES,ANA "2STOF 15:22:31 16:34:54 20150508509 RPT 05/18/2015 16:16:44 Departmem OCA Number RMS Juris 20002R E 49TH//SANTA FE AV,VERNON VPD CR20150857 CA0197300 VPD RAMOS,JOSE/OU `2A8 16:18:33 16:18:34 17:01:12 Page 2 of 3 0512412015 00.40:57 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 05/18/2015 Jurisdiction: VERNON Last Date: 05/18/2015 Call Number Disp Ten Received Caller Code Complaint Dep Of Address Unit Tigre Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508512 VI 05/18/2015 17:38:31 Departmem OCA Number RMS Juris RPT TRAFFIC STOP E VERNON AV//ALAMEDA,VERNON VPD CR20150858 CA0197300 VPD GAYTAN,LOREN2 *2L12 17:38:32 18:19:00 20150508516 RPT 05/18/2015 17:51:57 FOUR STAR CHEMICAL Departmem OCA Number RMS Juris 503R 3137 E 26TH,VERNON VPD CR20150859 CA0197300 VPD RAMOS,JOSE/OU *2A8 17:54:12 17:54:37 17:58:14 18:43 20 20150508517 VI 05/18/2015 18:11:34 Departmem f)GI Number RMS Juris RPT VCK E 52D//MALABAR,VERNON VPD CR20150860 CA0197300 VPD GAYTAN,LOREN2 *2L12 18:11:42 18:42:48 Page 3 of 3 05/24/2015 00.40:51 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 05/19/2015 Jurisdiction: VERNON Last Date: 05/19/2015 Call Number Disp Ten Received Caller Code Complaint Address m Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508569 1015 05/19/2015 10:02:45 DET 6829 FLORA,BELL S/A A VPD ENCINAS,ANTHO *5D35 10:03:21 11:05:42 VPD 5D30 10:19:07 10:03:21 10:11:56 11:05:41 VPD MARTINEZ,GABR 5D31 10:03:22 11:05:41 20150508585 CITE 05/19/2015 12:30:43 TRAFFIC STOP 3400 E SLAUSON AV,VERNON DeDartmem OCA Number RMS Juris VI VPD CR20150862 CA0197300 RPT VPD GAYTAN,LORENZ *21-11 12:30:43 13:03:08 20150508600 CITE 05/19/2015 14:56:13 VCK 6074 MALBURG WY VERNON Deparlmeni OCA Number RMS Juris , VI VPD CR20150864 CA0197300 VPD GAYTAN,LOREN2 *2L11 14:56:13 15:21:59 20150508601 RPT 05/19/2015 15:02:54 FOUR SEASONS-GENERAL MERCH Departmeni OCA Number RMS Juris 1015 242 2801 E VERNON AV,VERNON VPD CR20150865 CA0197300 VPD RAMOS,JOSE/OU *2A9 15:06:21 15:09:22 17:51:23 VPD VALENZUELA,FEI 21-10 15:08:48 15:08:56 15:53:56 VPD NEWTON,TODD M1 15:13:49 15:21:11 17:51:23 20150508604 RPT 05/19/2015 15:08:43 MR60 28648 THE OLD ROAD,VALENCIA Departmem OCA Number RMS Juris VPD CR20150863 CA0197300 VPD CROSS,JEREMY *5D41 15:08:45 15:15:56 20150508619 RPT 05/19/2015 19:12:30 TRAFFIC STOP BANDERA//57TH, LOS ANGELES Deparlmeni CR2 Number RMS Juris 1015 VPD R20150866 CA0197300 0 /2?_:,j „., .,` Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/19/2015 Jurisdiction: VERNON Last Date: 05/19/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Den Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508619 RPT 05/19/2015 19:12:30 TRAFFIC STOP BANDERA//57TH, LOS ANGELES Departmem CR2 Number RMS Juris 1015 VPD R20150866 CA0197300 VPD VANOVER,DONAI "K91 19:12:30 20:09:17 VPD HERNANDEZ,EDV 11-12 19:13:41 20:35:38 20150508625 RPT 05/19/2015 21:04:31 AT&T MOBILITY 800 635 6840 4 901T 3030 S ATLANTIC BL,VERNON Departmem CR2 Number R 019730 s VPD CR20150867 CA0197300 VPD MADRIGAL,MARI/ '11-11 21:07:00 21:07:05 21:10:23 23:06:11 VPD HERNANDEZ,EDV 11-12 22:11:26 23:06:12 VPD VANOVER,DONAI K91 21:08:49 21:08:50 21:11:15 2 -9-fV?015 05:11:1. :--RF�e.. '.> ,; of VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 06/20/2015 Jurisdiction: VERNON Last Date: 05/20/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508647 CITE 05/20/2015 08:02:31 Departmem OCA Number RMS Juris RPT TRAFFIC STOP E 52D//SANTA FIE AV,VERNON VPD CR20150868 CA0197300 VI VPD GAYTAN,LORENZ *21-9 08:02:31 08:28:13 20150508659 CITE 05/20/2015 10:04:02 Departmem OCA Number RMS Juris RPT TRAFFIC STOP GIFFORD AV//50TH,VERNON VPD CR20150869 CA0197300 VI VPD GAYTAN,LORENZ *21-9 10:04:02 10:44:23 20150508662 CITE 05/20/2015 10:44:20 Departmem OCA Number RMS Juris VI VCK 4879 FRUITLAND AV,VERNON VPD CR20150870 CA0197300 RPT VPD GAYTAN,LORENZ *2L9 10:44:25 11:14:24 20150508667 RPT 05/20/2015 11:54:50 DPTAST 14341 DEANANN PL,GARDEN GROVE Departmem OCA Number RMS Juris VPD CR20150873 CA0197300 VPD STEVENSON,KEN *K92 11:54:50 16:00:57 17:38:05 VPD DOCHERTY,MICH 2L12 16:43:06 16:43:10 20150508674 RPT 05/20/2015 13:40:21 ALHAM HOME FASHION REC 5107 S DISTRICT BL,VERNON Departmem OCA Number RMS Juris VS VPD CR20150871 CA0197300 VPD CERDA,EUGENIO *2L11 13:45:28 13:54:27 14:35:11 20150508681 05/21/2015 08:28:24 Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/20/2015 Jurisdiction: VERNON Last Date: 05120/2016 Call Number Disp Ten Received Caller Code Complaint Address U T me Den Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508681 HPPD 05/20/2015 14:26:51 Departmem OCA Number RMS Juris TRAFFIC STOP DOWNEY RD//50TH,VERNON 0 HPPN VPD CR20150872 CA4197300 CITE SRVD VI RPT VPD GAYTAN,LOREN2 *21-9 14:26:51 15:03:49 20150508688 RPT 05/20/2015 15:57:13 SPRINT 866-398-3284 Departmenj OCA Number RMS Juris ASST 902T 3278 SLAUSON,VERNON VPD CR20150874 CA0197300 VPD CERDA,EUGENIO *21-11 15:59:17 16:02:38 16:50:35 20150508698 RPT 05/20/2015 18:36:57 MR60 3364 E SLAUSON AV,VERNON Departmem CR2 Number RMS Ju00 VPD R20150875 CA0197300 VPD WINEGAR,JERRY *21-92 18:39:16 18:45:46 20150508707 CITE 05/20/2015 22:19:34 Departmem OCA Number RMS Juris VI TRAFFIC STOP PACIFIC BL//49TH,VERNON VPD CR20150876 CA0197300 VPD HERRERA,GUSTf *1L11 22:19:35 22:53:22 VPD VANOVER,DONAI K91 22:19:39 22:19:40 22:21:30 22:53:22 05/21/2015 0a:26:Y4 ` Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/21/2015 Jurisdiction: VERNON Last Date: 06/21/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508720 REPO 05/21/2015 10:20:50 HIDE AND SEEK RECOVERY REPO 2725E 46TH,VERNON Departmem OCA Number RMS Juris VPD CR20150877 CA0197300 VPD RECORDS BURS/ *RECD 10:23:20 10:58:33 20150508727 RPT 05/21/2015 11:26:28 RECORDS 594R 2726 FRUITLAND AV,VERNON Department OCA Number RMS J300 VPD CR20150878 CA0197300 VPD CERDA,PAUL,JR *2L11 11:27:44 11:27:55 VPD CERDA,EUGENIO 21-12 11:27:49 11:43:13 12:13:37 20150508737 RPT 05/21/2015 15:35:56 SPRINT 866-398-3284 902T 3333 DOWNEY RD,VERNON Departmeni OCA Number RMS Jur0 VPD CR20150879 CA0197300 VPD STEVENSONXEN *K92 15:38:13 16:58:28 VPD CERDA,PAUL,JR 2L11 15:38:17 15:38:54 17:16:19 VPD CERDA,EUGENIO 21-12 15:41:41 16:11:33 VPD SANTOS,DANIEL 2S2 15:42:49 16:12:40 20150508738 RPT 05/21/2015 15:59:03 STREAMLINE 470R 2715 S BONNIE BEACH PL,VERNON Department OCA Number RMS J300 VPD CR20150880 CA0197300 VPD CERDA,EUGENIO *21-12 16:31:16 16:38:55 18:27:09 20150508749 RPT 05/21/2015 19:14:03 Jurls 1015 TRAFFIC STOP 2955 E VERNON AV,VERNON DPDDartmen� CR20OCA Aber �197300 VS VPD VASQUEZ,LUIS *1L2 19:14:03 20:05:20 VPD 1 L1 19:15:14 19:17:35 19:31:00 20150508760 RPT 05/21/2015 22:50:01 TRAFFIC STOP E VERNON AV//ALAMEDA,VERNON Department OCA Number RMS J300 CITE VPD CR20150882 CA0197300 VI 05/22/2015 00:10:5C Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 05/21/2015 Jurisdiction: VERNON Last Date: 05/21/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Camp 20150508760 RPT 05/21/2015 22:50:01 TRAFFIC STOP E VERNON AV//ALAMEDA,VERNON Department Number RMS J300 CR2 CITE VPD R20150882 CA019700 VI VPD HERRERA,GUSTE "1 L1 22 50 01 23 57:54 VPD VANOVER,DONAI K91 22:50:04 22:50:04 22 58 03 23:54:10 0&27f2015 00:10:5C Page 2•: � of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/22/2015 Jurisdiction: VERNON Last Date: 05/22/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508788 RPT 05/22/2015 09:59:36 MAAS HANSEN STELL ILLDPG RPT 2435 E 37TH,VERNON Departmem OCA Number RMS Juris VPD CR20150883 CA0197300 VPD DOCHERTY,MICH '21-9 10:01:05 10:01:36 10:13:02 10:33:28 20150508796 RPT 05/22/2015 11:50:06 920PR SANTA FE//30TH,VERNON Departmem OCA Number RMS Juris VPD CR20150884 CA0197300 VPD CERDA,EUGENIO "21-10 11:50:09 12:27:02 20150508800 ASST 05/22/2015 12:24:14 UPS Departmem OCA Number RMS Juris RPT 417 3333 DOWNEY RD,VERNON VPD CR20150888 CA0197300 VPD SANTOS,DANIEL '2S2 12:26:04 13:08:35 VPD CERDA,EUGENIO 21-10 12:32:48 12:38:25 VPD CERDA,PAUL,JR 21-11 12:32:55 13:00:55 VPD REYNA,JOSE S 21-12 12:32:58 13:54:54 VPD STEVENSON,KEN K92 12:26:32 12:33:15 13:54:54 20150508803 RPT 05/22/2015 12:51:13 PREFERRED FREEZER 484R 4901 BANDINI BL,VERNON Departmem VPD R2 CR2 Number RMS Juris 0150885 CA0197300 VPD CERDA,PAUL,JR *21-11 13:00:59 13:56:21 13:09:20 14:47:10 20150508813 RPT 05/22/2015 14:45:01 CRISTINA Departmem OCA Number RMS Juris 901T S BOYLE AV//44TH,VERNON VPD CR20150886 CA0197300 VPD STEVENSON,KEN "K92 14:46:59 14:53:50 VPD CERDA,PAUL,JR 21-11 14:47:15 14:54:49 15:21:40 20150508819 RPT 05/22/2015 15:19:42 LA CITY FIRE Departmem OCA Number RMS Juris 901TR S ALAMEDA//38TH,VERNON VPD CR20150887 CA0197300 VPD REYNA,JOSE S `21-12 15:21:50 15:26:42 16:37:17 VPD CERDA,PAUL,JR 21-11 15:21:54 15:26:40 15:54:48 051;es/z;j.:i G5:27:3L Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/22/2015 Jurisdiction: VERNON Last Date: 05/22/2015 Call Number Disp Ten Received Caller Code Complaint Address _ Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508834 RPT 05/22/2015 19:18:47 902T 3278 E SLAUSON AV.VERNON Departmem OCA Number RMS Juris VPD CR20150889 CA0197300 VPD VASQUEZ,LUIS *1 L2 19:20:24 19:20:47 19:22:28 20:07:47 VPD VALENZUELA,FEI 11-3 19:20:25 19:20:52 19:21:22 20150508839 VREC 05/22/2015 21:37:07 RPT REC EMERY//GRANDE VISTA,VERNON PeDpartmem CR20 0890 Number RMS 97300 VPD VALENZUELA,FEI *1L3 21:37:07 22:19:32 20150508842 RPT 05/22/2015 22:39:27 CHRIS 901T ATLANTICHBANDINI,VERNON Department OCA Number RMS Juris VPD CR20150891 CA0197300 VPD VALENZUELA,FEI *1L3 22:40:02 22:42:14 22:45:17 23:48:10 VPD VANOVER,DONAI 11-1 22:40:37 22:45:29 23:34:59 VPD VASQUEZ,LUIS 11-2 22:41:58 22:47:54 23:24:05 20150508847 RPT 05/22/2015 23:58:11 uris 1015 TRAFFIC STOP S ALAMEDA//48TH,VERNON VPDDartmem C 20 Number 92 er �197300 VS VPD ESTRADA,IGNACI *1S1 23:58:11 01:07:08 VPD VANOVER,DONAI 1 L1 23:58:13 23:58:14 00:04:45 01:32:48 VPD VASQUEZ,LUIS 11-2 00:32:02 01:35:26 05/23/2015 05:27:3t Page 2 ai VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/23/2016 Jurisdiction: VERNON Last Date: 05/23/2016 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Pep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508875 RPT 05/23/2015 13:54:07 AT&T MOBILITY 800 635 6840 4 Departmem OCA Number RMS Juris 901T S SANTA FE AV//26TH,VERNON VPD CR20150893 CA0197300 VPD CERDARAIJUR '21-3 13:56:11 13:57:55 14:26:37 VPD REYNA,JOSE S 2L2 13:56:16 14:11:02 14:26:36 05124✓2015 00:22:44 Page 1 of 1 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/24/2015 Jurisdiction: VERNON Last Date: 05/24/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150508914 RPT 05/24/2015 14:04:16 20002 DOWNEY RD//EXCHANGE AV,VERNON Departmem CR2 Number RMS Juris VPD R20150894 CA0197300 VPD ZOZAYA,OSCARB "2A8 14:05:25 14:06:03 14:10:15 15:49:47 VPD LANDA,RAFAEL 2L11 14:05:27 14:06:01 14:12:49 15:49:47 VPD VALENZUELA,FEI 2L12 14:06:10 14:09:21 15:37:05 VPD SANTOS,DANIEL 2S2 14:10:34 15:49:48 20150508917 VREC 05/24/2015 16:47:58 NEW CHEF REC 3223E 46TH,VERNON Departmem OCA Number RMS Juris VPD CR20150895 CA0197300 VPD ZOZAYA,OSCARh '2A8 16:49:58 16:51:33 16:56:00 17:02:34 VPD VALENZUELA,FEI 2L12 16:50:03 16:51:34 16:55:58 18:29:30 20150508920 RPT 05/24/2015 17:06:29 JORGE DUI 5121 HAMPTON,VERNON Departmem OCA Number RMS Juris 1015 VPD CR20150896 CA0197300 VI VPD ZOZAYA,OSCARB '2A8 17:09:04 17:09:34 19:09:34 VPD LANDAAAFAEL 2L11 17:09:23 17:11:04 18:02:41 0512512015 05:00:0, Page 1 of 7 T G o cu C ro 4 Q' ti F°+ C � A m U � � � y 5 � w � `IOlt G T O � � a • Er C) ti of of c� a y N (z � ti v N (Z A �, •a U � U VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 05/26/2015 Jurisdiction: VERNON Last Date: 05/26/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Den Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150509025 1015 05/26/2015 07:19:47 SPRINT 866-398-3284 487 2410 E 38TH,VERNON Departmem OCA Number RMS Juris RPT VPD CR20150897 CA0197300 VPD GAYTAN,LORENZ *21-11 07:21:39 07:23:15 07:29:42 08:35:50 VPD RAMOS,JOSE/OU 2Al2 07:24:25 07:29:40 09:10:45 VPD VALENZUELA,FEI 2L10 07:24:37 08:39:42 VPD CERDA,EUGENIO 2Z8 07:23:52 08:55:35 VPD NEWTON,TODD M1 07:21:40 07:23:33 07:29:43 07:57:38 20150509032 CITE 05/26/2015 09:07:30 RPT TRAFFIC STOP PACIFIC BL SANTA FE AV,VERNON VPDartmem CRC20 0898 Number RMS 97300 VI VPD NEWTON,TODD *M1 09:07:30 09:35:04 VPD RAMOS,JOSE/OU 2Al2 09:16:06 09:18:30 09:26:57 20150509051 CITE 05/26/2015 13:11:28 VI TRAFFIC STOP 3345 E SLAUSON AV,VERNON Department OCA Number RMS Juris VPD CR20150899 CA0197300 RPT VPD GAYTAN,LOREN2 "21-11 13:11:28 13:37:57 20150509060 RPT 05/26/2015 14:29:12 EAST LOS ANGELES SHERIFFS 20002R S DISTRICT BL//ATLANTIC BL,VERNON VPD DISPATCH 'DISP 14:48:16 15:58:26 20150509063 VI 05/26/2015 15:07:42 RPT TRAFFIC STOP 4501 S SANTA FE AV,VERNON DPDDartmem CRC20 0900 Number RMS 97300 CITE VPD GAYTAN,LORENZ '2L11 15:07:50 15:35:08 20150509071 0512712015 05:49:07 Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/26/2015 Jurisdiction: VERNON Last Date: 05/26/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150509071 CITE 05/26/2015 16:06:21 OCA Number RMS Juris VI TRAFFIC STOP 5931 STATE,VERNON Departmem CR20 0 01 CA0197300 RPT VPD GAYTAN,LOREN2 *21-11 16:06:21 16:39:36 20150509075 CITE 05/26/2015 16:47:14 S Juris VI TRAFFIC STOP 5899 DOWNEY RD,VERNON Departmem CRC20 0 02 CA0Number 97300 RPT VPD GAYTAN,LOREN2 '2L11 16:47:14 17:28:31 20150509078 RPT 05/26/2015 17:08:40 901TR E VERNON AV//SANTA FE AV,VERNON Departmem CR2 Number RMS Juris VPD R20150903 CA0197300 VPD RAMOS,JOSE/OU "2Al2 17:09:51 17:13:02 17:34:20 VPD NEWTON,TODD M1 17:19:02 17:34:20 20150509081 CITE 05/26/2015 17:49:21 VI TRAFFIC STOP 2357 E SLAUSON AV,VERNON Departmem CR2 Number RMS Juris VPD R20150904 CA0197300 RPT VPD GAYTAN,LOREN2 '21-11 17:49:25 18:22:07 20150509091 VI 05/26/2015 19:23:07 CITE TRAFFIC STOP S SOTO//FRUITLAND AV,VERNON Departmem OCA Number RMS Juris VPD CR20150905 CA0197300 RPT VPD MADRIGAL,MARU *1 L12 19:23:07 19:57:05 0512712015 05.49:07 Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA Is First Date: 06/27/2015 Jurisdiction: VERNON Last Date: 05/27/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Gimp 20150509119 1015 05/2712015 07:25:34 PRSTRAN 151 N ISABEL,GLENDALE VPD NEWTON,TODD *21-8 07:25:34 09:28:26 20150509122 CITE 05/27/2015 08:19:35 TRAFFIC STOP E SLAUSON AV//ALAMEDA,VERNON Departmem Number RMS Juris CR2 VI VPD R20150906 CA0197300 RPT VPD GAYTAN,LORENZ *21-12 08:19:35 08:53:08 20150509125 VI 05/27/2015 08:52:52 CITE TRAFFIC STOP E 52D//ALAMEDA,VERNON Departmem OCA Number RMS Juris VPD CR20150907 CA0197300 RPT VPD GAYTAN,LORENZ *21-12 08:52:58 09:18:11 20150509127 CITE 05/27/2015 09:43:09 VI 902T S SANTA FE AV//38TH,VERNON Departmem OCA Number RMS Juris VPD CR20150908 CA0197300 RPT VPD DOCHERTYWICH *21-11 09:44:42 09:52:12 10:02:29 VPD GAYTAN,LORENZ 21-12 09:49:22 10:33:19 VPD NEWTON,TODD 21-8 09:44:44 10:07:34 VPD ENCINAS,ANTHO 5D35 09:55:20 10:01:53 20150509139 1015 05/27/2015 11:39:56 LA CLOSEOUT INCE Departmem OCA Number RMS Juris RPT 911A 5526 S SOTO,VERNON VPD CR20150910 CA0197300 VPD DOCHERTY,MICH *21-11 11:45:31 11:46:18 12:03:22 13:21:50 VPD STEVENSON,KEN K92 11:45:33 11:46:21 11:57:38 12:47:49 20150509141 0512812015 05:40:2.' Page 1 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/27/2015 Jurisdiction: VERNON Last Date: 05/27/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150509141 CITE 05/27/2015 12:17:40 VI TRAFFIC STOP SACO//37TH,VERNON DPDar[mem CRC20 0 09 Number RMS 97300 RPT VPD GAYTAN,LORENZ *2L12 12:17:41 12:45:31 20150509146 RPT 05/27/2015 13:12:52 INTERFRESH INC 459VR 3300 E VERNON AV,VERNON Deparlmem VPD R2 CR2 Number CMS Juris 0150911 CA0197300 VPD DOCHERTY,MICH *2L11 13:22:26 13:26:47 14:00:05 20150509155 RPT 05/27/2015 14:28:30 BON APPETIT DANISH INC. ID THEFT RPT 4526 E DISTRICT BL,VERNON Deparlmen� CR2 Number RMS Juris VPD R20150912 CA0197300 VPD CHAVEZ,JERRY,J `DSAM 14:39:39 14:52:02 20150509159 REPO 05/27/2015 15:28:17 MOTION REPOSESSORS REPO 2465 FRUITLAND AV VERNON Deparlmeni OCA Number RMS Juris , RPT VPD CR20150913 CA0197300 VPD RECORDS BURS/ *RECD 15:31:26 16:09:11 D 0512812015 05:40:2.' Page 2 of 2 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/28/2015 Jurisdiction: VERNON Last Date: 05/28/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150509204 REPO 05/28/2015 10:54:19 TEAMWORK TRADING REPO 3748E 26TH,VERNON Departmem OCA Number RMS Juris VPD CR20150914 CA0197300 VPD RECORDS BURE/ "RECD 11:02:42 11:09:25 20150509208 RPT 05/28/2015 12:00:37 AT&T MOBILITY 800 635 6840 4 901T 4545 PACIFIC BL VERNON Department OCA Number RMS Juris , VS VPD CR20150916 CA0197300 CITE ADV VPD CERDA,EUGENIO "2L1 12:01:09 12:03:11 13:06:23 VPD CERDA,PAUL,JR 2L2 12:01:11 12:03:15 12:27:19 12:58:55 VPD REYNA,JOSE S 2L3 12:04:17 12:08:20 13:06:24 20150509211 RPT 05/28/2015 12:23:42 IRIS 484R 3301 FRUITLAND AV,VERNON Department OCA Number RMS Juris VPD CR20150917 CA0197300 VPD DOCHERTY,MICH "2L8 12:29:20 12:37:42 13:37:13 VPD REYNA,JOSE S 21-3 13:07:15 13:12:12 13:23:13 0512912015 01:03:41 Page 1 of 1 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/29/2015 Jurisdiction: VERNON Last Date: 05/29/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150509255 VS 05/29/2015 09:08:04 Juris RPT VCK LOMA VISTA AV//DISTRICT BL,VERNON PeDparlmem CR20 0918 Number ��97300 VPD CERDA,PAUL,JR *21-11 09:08:04 09:45:46 20150509260 RPT 05/29/2015 10:32:17 LUMI 459R 3828 S SANTA FE AV,VERNON Departmen� OCA Number RMS Juris VPD CR20150919 CA0197300 VPD REYNA,JOSE S "2L12 10:33:44 10:33:58 10:46:06 13:32:51 VPD CERDA,PAUL,JR 21-11 11:17:46 11:17:48 20150509277 CITE 05/29/2015 13:07:54 FEDEX GROUND RPT 586 2600 E 28TH,VERNON DPDDartmem CR20 0920 Number RMS 97300 VS VPD CERDA,PAUL,JR *2L11 13:11:17 13:17:49 13:56:11 20150509282 RPT 05/29/2015 13:46:47 PLATE 4810 EVERETT,VERNON Department Number RMS Juris CR2 VPD CR20150921 CA0197300 VPD DOCHERTY,MICH '2L9 13:50:16 13:50:19 14:50:27 20150509293 1015 05/29/2015 15:37:42 RPT WARRANT 4305 S SANTA FE AV,VERNON DPDDarlmen� CR20OCA 0922 Number RMS 97300 VPD ENCINAS,ANTHO "5D35 15:37:56 16:37:39 VPD MADRIGAL,MARI/ 2L8 15:44:35 15:55:16 16:31:34 0513012015 00:11:1E Page 1 of 1 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: 05/30/2015 Jurisdiction: VERNON Last Date: 05/30/2015 Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dispatch Enroute OnScene Depart Arrive Remove Comp 20150509326 VREC 05/30/2015 06:44:17 REC RITA H RANDOLPH, HUNTINGTON PARK Department OCA Number r RMS Jur0 VPD CR20150923 CA0197300 VPD VASQUEZ,LUIS '1 L1 06:44:17 07:25:01 20150509353 RPT 05/30/2015 18:40:14 uris VS 901 FRUITLAND AV//SOTO,VERNON VPDDartmem O 200 5Number �197300 VPD REYNA,JOSE S '21-11 18:41:09 18:42:43 19:27:38 VPD SWINFORD,PHILL 11-1 18:50:12 18:50:56 19:46:34 VPD VELASQUEZ,RIM 11-2 18:52:48 19:46:34 VPD LANDA,RAFAEL 21-12 18:43:02 18:50:58 19:27:41 0513112015 03:06:4C Page 1 of 1 VERNON POLICE DEPARTMENT Call Log Report Type All Unit Times and Location with OCA 's First Date: QS -3/ Jurisdiction: Last Date: 05- 3/-a?0fS-- Call Number Disp Ten Received Caller Code Complaint Address Unit Time Dep Officer Unit Dikparch Enroute OnScene Depart Arrive Remove Como o CC6C 0610112015 06:17:35 page 1 of 1 �V v: ow S V of L.,.•. ae y c� CITY ADMINISTRATION STAFF REPORT PUBLIC WORKS, WATER & DEVELOPMENT SERVICES DEPARTMENT En DATE: June 16,2015 / TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson Director of Public Works,Water and Development Services Originator: Lissette Melendez,Associate Engineer RE: 2014 Traffic Collisions Review Recommendation A. Find that the acceptance of the enclosed 2014 Traffic Collisions Review is categorically exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15306 (Class 6) which consists of basic data collection, research, experimental management and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource; and B. Accept the enclosed 2014 Traffic Collisions Review for its records. Background The 2014 Traffic Collisions Review provides a synopsis of all accidents that occurred within the City in 2014 and compares rates with previous years. The collisions are organized and presented in various graphs,charts and tables to identify key characteristics and patterns associated with the collisions. The review found that the number of annual collision increased 3.9% from the previous calendar year. There were a total of 292 collisions during the 2014. The purpose do the review is to aid in the identification of problem collision areas and to determine if further studies are needed at these locations to reduce the number of traffic accidents. Fiscal Impact Acceptance of the 2014 Traffic Collisions Review has no fiscal impact. Attachment(s) 1. 2014 Collisions Review F VET �+ All,/ v a�tG 4 s��ELY'IT�OJ TRAFFIC COLLISIONS REVIEW 2014 CITY OF VERNON PUBLIC WORKS TRAFFIC ENGINEERING DIVISION TABLE OF CONTENTS Executive Summary General Categories 2011-2014 Associated Factors 2011-2014 Primary Collision Factor by Degree of Injury Motor Vehicle Involved With by Degree of Injury Collisions by Injury Severity Parties at Fault by Age Collisions by Day of Week and Hour of Day Monthly Traffic Collisions Charts and Graphs Charts Primary Collisions Factors Collision Type Involved With Extent of Injury Collisions Affected by Weather Collisions Affected by Lighting Conditions Graphs Traffic Collisions (2005-2014) Collisions by Month Collisions by Day of the Week Collisions by Hour of Day Collision Type Collisions by Intersection and Midblock High Incidence Map High Incidence Intersection Report Intersection Collision Type Summary Intersection Collision Severity Summary High Incidence Midblock Report Intersection Collision Diagrams (Five or more collisions) Midblock Collision Locations (Four or more collisions) EXECUTIVE SUMMARY v lmillNi'Olhl 41 111 � ij� 6'tRNOy �Nculdi GENERAL CATEGORIES 2011-2014 CATEGORIES 2014 2013 2012 2011 TOTAL COLLISIONS 292 281 294 280 Intersection Collisions 143 97 126 98 Mid-Block Collisions 149 184 168 182 SEVERITY Fatal Collisions 2 0 4 0 Injury Collisions 82 89 90 88 Property Collisions 208 192 200 192 LIGHTING Daytime Collisions 220 220 212 197 Dusk-Dawn 4 5 6 8 Nighttime Collisions 62 55 70 73 WEATHER Clear 269 256 244 244 Cloudy 11 17 24 24 Rainy 8 6 19 9 ROAD SURFACE Dry 276 274 258 260 Wet 14 7 24 13 Slippery 0 0 3 1 ASSOCIATED FACTORS 2011-2014 OTHER ASSOCIATED FACTORS 2014 2013 2012 2011 Violation 29 42 33 41 Hit&Run 69 70 62 73 Vision Obscurement 2 0 3 4 Inattention 11 0 7 8 Stop and Go Traffic 3 0 0 2 Unfamiliar With Road 2 0 0 1 Defective Equipment 2 0 0 1 Uninvolved Vehicle 1 0 0 0 Runaway Vehicle 1 1 1 0 HBD -Under Influence 7 2 7 8 HBD -Not Under Influence 2 0 2 1 HBD -Impairment Unknown 2 0 5 4 Other—Not Stated 10 3 16 16 C O 0) o e o 0 O o 0 o e o 0 o e o 0 o e M O O CO o 0 0 0 o e o o o e o 0 E a N r r V M r t` Cl) O o l0 -ct 00 CO CO 00 O W O O M r N M P,.: tt 00 01 d. 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O O O N — — — O a+ ca c n M O � L CQ `n M �n O O N v'� -� N N M � � � N --� CDN L � L' H c Cd ^O lu H M 00 O �--� O O N �--� N N d' O M � N O O --� O `. M 'O d 3 �n O O O O O M In l� cq 7 H T O N T � M M O Vl --� O --� O O M �O d' vl M M v1 M �n �O 7 Vl -• .--� O O O N o O I— ca O — '--' O O N O O N r = O � N r r 'O r NCO I M M O � O N � N M 0 o 3 e L U x --� N N M N <Y' N N N d � 3 x O N N N �O N d' 01 01 01 V1 N d' 0 � N N "o -. C A 00 O Vl 00 II�S H 4-4 17i A rn 01 rn 01 O\ rn 01 O� O\ 01 O, C1 01 O\ 01 ON 01 Ci O\ rn C1 N C;� C� In In In O O c> N M zF In \O l— 00 O\ O N M d' Vl �O [� 00 O� O N M a ~ O Y ❑ O O O O O O O O O O O O O O O O O O O O O O O 00 01 O N M 4 n O [� 00 O� O U F O O O O O O O O O O -- — �-- -� -� -� N N N N Monthly Traffic Collisions Type -Hour- Day 5119115 Month: January Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 1 0 1 0 2. Persons Killed 1 0 1 0 3. Injury Collisions 11 13 -15 11 9 22 4. Persons Injured 15 27 -44 15 11 36 5. P.D. Collisions 15 18 -17 15 13 15 6. H&R Collisions- Parked 0 2 -100 0 0 7. H&R Collisions- Moving 4 7 -43 4 3 33 8. Vehicle vs. Bicyclist 0 0 0 1 -100 9. Motor Vehicles in Traffic 17 20 -15 17 16 6 10. H.B.D. Collisions 0 1 -100 0 1 -100 11. Vehicle vs. Pedestrian 0 0 0 2 -100 12. Vehicle vs. Object 9 8 13 9 3 200 Total Collisions 27 31 -13 27 22 j 23 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 1 0 0 0 1 2. Persons Killed 0 0 0 1 0 0 0 1 3. Injury Collisions 0 1 1 3 3 3 0 11 4. Persons Injured 0 2 1 5 4 3 0 15 5. P.D. Collisions 0 4 5 4 2 0 0 15 6. H&R Collisions- Parked 0 0 0 0 0 0 0 0 7. H&R Collisions- Moving 0 1 2 1 0 0 0 4 8. Vehicle vs. Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 2 5 5 5 0 0 17 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 3 0 3 0 3 0 9 Total Collisions 0 5 6 8 5 3 0 27 Type of Traffic Collision Sun Mon Tue Wed Thur Fri S,at Total 1. Fatal Accidents 0 0 1 0 0 0 0 1 2. Persons Killed 0 0 1 0 0 0 0 1 3. Injury Accidents 1 5 1 2 1 1 0 11 4. Persons Injured 1 8 1 2 1 1 2 0 15 5. P.D. Accidents 0 4 2 4 2 3 0 15 6. H&R Accidents- Parked 0 0 0 0 0 0 0 0 7. H&R Accidents- Moving 0 1 0 2 1 0 0 4 8.Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9, Motor Vehicles in Traffic 0 8 1 5 1 2 0 17 10, H.B.D. Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 1 1 3 1 2 1 0 9 Total Accidents 1 9 4 6 3 4 0 27 Monthly Traffic Collisions Type - Hour-Day 5119115 Month: February Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 1 -100 1 0 2. Persons Killed 0 1 -100 1 0 3. Injury Collisions 10 11 -9 21 15 40 4. Persons Injured 12 15 -20 27 17 59 5. P.D. Collisions 11 15 -27 26 25 4 6. H&R Collisions - Parked 0 0 0 0 7. H&R Collisions-Moving 4 4 0 8 7 14 8. Vehicle vs. Bicyclist 0 0 0 3 -100 9. Motor Vehicles in Traffic 14 17 -18 31 25 24 10. H.B.D. Collisions 0 0 0 1 -100 11. Vehicle vs. Pedestrian 0 0 0 3 -100 12. Vehicle vs. Object 7 9 -22 16 6 167 Total Collisions 21 27 L -22 48 40 20 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 0 3 1 1 3 3 0 0 10 4. Persons Injured 0 3 1 3 5 0 0 12 5. P.D. Collisions 2 1 3 2 0 1 2 11 6. H&R Collisions-Parked 0 0 0 0 0 0 0 0 7. H&R Collisions- Moving 1 1 0 0 0 0 2 4 8.Vehicle vs. Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 4 4 3 2 1 0 14 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12.Vehicle vs. Object 2 0 0 2 1 0 2 7 Total Collisions 2 4 4 5 3 1 2 21 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 0 1 3 1 0 3 2 1 1 10 4. Persons Injured 0 1 5 0 3 2 1 12 5. P.D. Accidents 1 2 1 2 4 1 0 11 6. H&R Accidents-Parked 0 0 0 0 0 0 0 0 7. H&R Accidents-Moving 1 1 1 0 1 0 0 4 8. Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 1 4 1 4 3 1 14 10. H.B.D.Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 1 0 0 0 0 1 0 1 0 0 12. Vehicle vs. Object 1 2 0 1 3 0 0 7 Total Accidents 1 3 4 2 7 3 1 21 Monthly Traffic Collisions Type -Hour-Day 5119115 Month: March Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % - Change This Year Last Year Change 1. Fatal Collisions 0 0 1 0 2. Persons Killed 0 0 1 0 3. Injury Collisions 5 10 -50 26 23 13 4. Persons Injured 7 12 -42 34 28 21 5. P.D. Collisions 12 11 9 38 43 -12 6. H&R Collisions- Parked 0 0 0 1 -100 7. H&R Collisions- Moving 3 4 -25 11 15 -27 8.Vehicle vs. Bicyclist 0 0 0 4 -100 9. Motor Vehicles in Traffic 13 14 -7 44 42 5 10. H.B.D. Collisions 0 0 0 3 -100 11. Vehicle vs. Pedestrian 1 0 1 3 -67 12. Vehicle vs. Object 1 7 -86 17 13 31 Total Collisions 1 17 1 21 t -19 65 66 -2 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3, Injury Collisions 0 1 0 2 2 0 0 5 4. Persons Injured 0 1 0 4 2 0 0 7 5. P.D. Collisions 1 0 3 4 3 0 1 12 6. H&R Collisions- Parked 0 0 0 0 0 0 0 0 7. H&R Collisions- Moving 0 0 0 2 1 0 0 3 8. Vehicle vs. Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 1 0 2 6 4 0 0 13 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 1 0 0 0 0 0 1 12. Vehicle vs. Object 0 0 1 0 0 0 0 1 Total Collisions 1 1 L 3 6 5 0 1 17 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 0 1 2 0 1 0 1 5 4. Persons Injured 0 1 3 0 1 0 2 7 5. P.D. Accidents 0 4 2 3 1 1 1 12 6. H&R Accidents- Parked 0 0 0 0 0 0 0 0 7. H&R Accidents- Moving 0 0 1 1 0 0 1 3 8. Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 4 4 2 1 0 2 13 10. H.B.D.Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 1 0 0 0 0 0 1 12.Vehicle vs. Object 0 0 0 0 1 0 0 1 Total Accidents 0 5 4 3 2 1 2 17 Monthly Traffic Collisions Type -Hour-Day 5119115 Month: April Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 0 1 0 2. Persons Killed 0 0 1 0 3. Injury Collisions 3 5 -40 29 28 4 4. Persons Injured 9 7 29 43 36 19 5. P.D. Collisions 13 12 8 51 56 -9 6. H&R Collisions-Parked 0 0 0 2 -100 7. H&R Collisions- Moving 3 3 0 14 17 -18 8. Vehicle vs. Bicyclist 0 0 0 4 -100 9. Motor Vehicles in Traffic 11 13 -15 55 57 -4 10. H.B.D. Collisions 1 0 1 3 -67 11. Vehicle vs. Pedestrian 0 1 1 -100 1 3 -67 12. Vehicle vs. Object 2 1 100 19 15 27 Total Collisions 16 17 -6 81 84 -4 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 0 0 1 1 1 0 0 3 4. Persons Injured 0 0 1 3 5 Ion 0 9 5. P.D. Collisions 0 1 4 1 6 1 13 6. H&R Collisions-Parked 0 0 0 0 0 0 0 7. H&R Collisions-Moving 0 0 1 0 1 1 3 8. Vehicle vs. Bicyclist 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 0 3 1 6 0 1 11 10. H.B.D. Collisions 0 0 0 0 1 0 0 1 11. Vehicle vs. Pedestrian 0 1 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 1 1 0 0 0 0 2 Total Collisions 0 1 5 2 7 0 1 16 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 1 1 0 0 0 1 0 3 4. Persons Injured 5 3 0 0 0 1 0 9 5. P.D. Accidents 0 5 4 2 1 1 0 13 6. H&R Accidents-Parked 0 0 0 0 0 0 0 0 7. H&R Accidents-Moving 0 2 0 0 1 0 0 3 8.Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 1 4 3 1 1 1 0 11 10. H.B.D.Accidents 0 0 0 0 0 1 0 1 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 1 0 1 0 0 0 2 Total Accidents 1 6 4 2 1 2 0 16 Monthly Traffic Collisions Type - Hour- Day 5119115 Month: May Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 0 1 0 2. Persons Killed 0 _ 0 1 0 3. Injury Collisions 6 3 100 35 31 13 4. Persons Injured 7 9 -22 50 40 25 5. P.D. Collisions 21 13 62 72 72 0 6. H&R Collisions- Parked 0 0 0 2 -100 7. H&R Collisions-Moving 6 3 100 20 21 -5 8. Vehicle vs. Bicyclist 0 0 0 4 -100 9. Motor Vehicles in Traffic 20 11 82 75 72 4 10. H.B.D. Collisions 1 1 0 2 3 -33 11. Vehicle vs. Pedestrian 0 0 1 3 -67 12. Vehicle vs. Object 6 2 200 25 18 39 Total Collisions 27 16 69 108 103 5 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 0 1 2 1 0 2 0 6 4. Persons Injured 0 1 3 1 0 2 0 7 5. P.D. Collisions 0 4 0 10 3 1 3 21 6. H&R Collisions- Parked 0 0 0 0 0 0 0 0 7. H&R Collisions- Moving 0 0 0 2 0 1 3 6 8. Vehicle vs. Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 4 2 11 1 2 0 20 10. H.B.D. Collisions 0 0 0 1 0 0 0 1 11. Vehicle vs. Pedestrian 0 1 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 0 0 0 2 1 3 6 Total Collisions 0 5 2 11 3 3 3 27 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 0 0 0 1 3 1 1 6 4. Persons Injured 0 0 0 1 4 1 1 7 5. P.D. Accidents 2 4 5 1 4 4 1 21 6. H&R Accidents- Parked 0 0 0 0 0 0 0 0 7. H&R Accidents- Moving 1 0 1 0 1 2 1 6 8. Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 2 2 5 2 5 3 1 20 10. H.B.D.Accidents 0 0 1 0 0 0 0 1 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 1 0 0 2 2 1 6 Total Accidents 2 4 5 2 7 5 2 27 Monthly Traffic Collisions Type- Hour- Day 5119115 Month: June Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 0 1 0 2. Persons Killed 0 0 1 0 3. Injury Collisions 3 6 -50 38 38 0 4. Persons Injured 3 7 -57 53 49 8 5. P.D. Collisions 16 21 -24 88 83 6 6. H&R Collisions- Parked 1 0 1 3 -67 7. H&R Collisions- Moving 3 6 -50 23 28 -18 8. Vehicle vs. Bicyclist 0 0 0 5 -100 9. Motor Vehicles in Traffic 12 20 -40 87 84 4 10. H.B.D. Collisions 0 1 -100 2 3 -33 11. Vehicle vs. Pedestrian 0 0 1 4 -75 12. Vehicle vs. Object 3 6 -50 1 28 21 1 33 Total Collisions 19 27 -30 127 121 5 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 1 0 0 2 0 0 0 3 4. Persons Injured 1 0 0 2 0 0 0 3 5. P.D. Collisions 1 2 4 4 3 0 2 16 6. H&R Collisions-Parked 0 0 0 1 0 0 0 1 7. H&R Collisions-Moving 0 0 1 1 0 0 0 1 2 3 8. Vehicle vs. Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 1 4 4 2 0 1 12 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 2 0 0 0 0 0 1 3 Total Collisions 2 2 4 6 3 0 2 19 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 1 0 0 1 0 0 1 3 4. Persons Injured 1 0 0 1 0 0 1 3 5. P.D.Accidents 0 3 4 1 3 4 1 16 6. H&R Accidents- Parked 0 1 0 0 0 0 0 1 7. H&R Accidents- Moving 0 0 1 1 0 0 1 3 8. Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 2 2 2 3 2 1 12 10. H.B.D. Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 1 0 0 0 0 1 1 3 Total Accidents 1 3 1 4 1 2 3 4 2 19 Monthly Traffic Collisions Type -Hour- Day 5119115 Month: July Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 0 1 0 2. Persons Killed 0 0 1 0 3. Injury Collisions 5 3 67 43 42 2 4. Persons Injured 8 3 167 61 55 11 5. P.D. Collisions 17 16 6 105 103 2 6. H&R Collisions- Parked 2 1 100 3 5 -40 7. H&R Collisions- Moving 6 3 100 29 33 -12 8. Vehicle vs. Bicyclist 2 0 2 5 -60 9. Motor Vehicles in Traffic 15 12 25 102 103 -1 10. H.B.D. Collisions 0 0 2 5 -60 11. Vehicle vs. Pedestrian 0 0 1 4 -75 12. Vehicle vs. Object 3 3 0 31 24 29 Total Collisions 22 19 16 149 145 3 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 0 0 3 1 1 0 0 5 4. Persons Injured 0 0 5 1 2 0 0 8 5. P.D. Collisions 1 0 4 5 4 3 0 17 6. H&R Collisions- Parked 0 0 2 0 0 0 0 2 7. H&R Collisions- Moving 1 0 0 0 2 3 0 6 8.Vehicle vs. Bicyclist 0 0 0 1 1 0 0 2 9. Motor Vehicles in Traffic 0 0 5 5 3 2 0 15 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 1 0 0 0 1 1 0 3 Total Collisions 1 0 1 7 6 5 3 0 22 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 0 2 0 2 1 0 0 5 4. Persons Injured 0 2 0 4 2 0 0 8 5. P.D. Accidents 1 3 3 4 1 5 0 17 6. H&R Accidents- Parked 0 0 0 2 0 0 0 2 7. H&R Accidents-Moving 1 1 3 1 0 0 1 0 6 8. Vehicle vs Bicyclist 0 1 0 1 0 0 0 2 9. Motor Vehicles in Traffic 1 2 2 3 2 5 0 15 10. H.B.D.Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 2 1 0 0 0 0 3 Total Accidents 1 1 5 3 6 1 2 5 0 22 Monthly Traffic Collisions Type - Hour- Day 5119115 Month: Auqust Year: 2014 Type of Traffic Collision This Month Last Month % - To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 0 1 0 2. Persons Killed 0 0 1 0 3. Injury Collisions 10 5 100 53 55 -4 4. Persons Injured 15 8 88 76 78 -3 5. P.D. Collisions 18 17 6 123 126 -2 6. H&R Collisions- Parked 0 2 -100 3 6 -50 7. H&R Collisions- Moving 8 6 33 37 39 -5 8.Vehicle vs. Bicyclist 1 2 -50 3 7 -57 9. Motor Vehicles in Traffic 25 15 67 127 127 0 10. H.B.D. Collisions 0 0 2 7 -71 11. Vehicle vs. Pedestrian 0 0 1 4 -75 12. Vehicle vs. Object 2 3 -33 33 32 3 Total Collisions 28 22 27 177 181 -2 �l Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 1 1 4 0 3 1 0 10 4. Persons Injured 1 3 6 0 3 2 0 15 5. P.D. Collisions 2 1 5 3 7 0 0 18 6. H&R Collisions- Parked 0 0 0 0 0 0 0 0 7. H&R Collisions- Moving 1 0 1 2 4 0 0 8 8. Vehicle vs. Bicyclist 0 0 0 0 1 0 0 1 9. Motor Vehicles in Traffic 2 2 9 3 8 1 0 25 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 1 0 0 0 1 0 0 Total Collisions 3 2 9 3 10 1 0 28 Type of Traffic Collision Sun Mon Tue Wed Thur Fri $at Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 1 0 2 1 1 4 1 10 4, Persons Injured 2 0 3 2 1 6 1 15 5. P.D.Accidents 0 5 2 1 3 4 3 18 6. H&R Accidents- Parked 0 0 0 0 0 0 0 0 7. H&R Accidents -Moving 0 3 0 1 0 2 2 8 8. Vehicle vs Bicyclist 0 0 0 0 0 1 0 1 9. Motor Vehicles in Traffic 1 5 4 2 3 7 3 25 10. H.B.D. Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 0 0 0 1 0 1 2 Total Accidents 1 5 4 2 4 8 4 28 Monthly Traffic Collisions Type - Hour- Day 5119115 Month: September Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 1 0 2 0 2. Persons Killed 1 0 2 0 3. Injury Collisions �9 10 -10 62 67 -7 4. Persons Injured 14 15 -7 90 92 -2 5. P.D. Collisions 27 18 50 150 145 3 6. H&R Collisions-Parked 0 0 3 6 -50 7. H&R Collisions-Moving 9 8 13 46 46 0 8. Vehicle vs. Bicyclist 3 1 200 6 9 -33 9. Motor Vehicles in Traffic 23 25 -8 150 148 1 10. H.B.D. Collisions 0 0 2 7 -71 11. Vehicle vs. Pedestrian 0 0 1 5 -80 12. Vehicle vs. Object 9 2 350 42 38 11 Total Collisions 37 28 32 214 212 1 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 1 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 1 0 1 2. Persons Killed 0 0 0 0 0 1 0 1 3. Injury Collisions 0 2 2 2 3 0 0 9 4. Persons Injured 0 2 4 2 4 2 0 14 5. P.D. Collisions 2 6 7 5 2 0 5 27 6. H&R Collisions-Parked 0 0 0 0 0 0 0 0 7. H&R Collisions-Moving 1 0 0 2 1 0 5 9 8. Vehicle vs. Bicyclist 0 1 0 2 0 0 0 3 9. Motor Vehicles in Traffic 1 4 9 5 3 1 0 23 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 1 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 1 3 0 0 0 0 5 9 Total Collisions 2 8 9 7 5 1 5 37 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 1 0 1 2. Persons Killed 0 0 0 0 0 1 0 1 3. Injury Accidents 0 2 4 1 0 1 1 9 4. Persons Injured 0 2 7 1 0 3 1 14 5. P.D. Accidents 2 7 7 3 5 2 1 27 6. H&R Accidents- Parked 0 0 0 0 0 0 0 0 7. H&R Accidents- Moving 0 2 2 2 1 1 1 9 8. Vehicle vs Bicyclist 0 1 1 0 0 0 1 3 9. Motor Vehicles in Traffic 2 5 8 3 4 1 0 23 10. H.B.D. Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 2 1 1 1 3 1 9 Total Accidents 2 9 11 4 5 4 2 37 Monthly Traffic Collisions Type - Hour- Day 5119115 Month: October Year: 2014 Type of Traffic Collision This Month Last Month % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 1 1 -100 2 0 2. Persons Killed 0 1 -100 2 0 3. Injury Collisions 6 9 -33 68 79 -14 4. Persons Injured 8 14 -43 98 108 -9 5. P.D. Collisions 16 27 -41 166 171 -3 6. H&R Collisions- Parked 2 0 5 7 -29 7. H&R Collisions-Moving 7 9 -22 53 56 -5 8. Vehicle vs. Bicyclist 0 3 -100 6 9 -33 9. Motor Vehicles in Traffic 14 23 -39 164 177 -7 10. H.B.D. Collisions 0 0 2 8 -75 11. Vehicle vs. Pedestrian 0 0 1 5 -80 12. Vehicle vs. Object 4 9 -56 46 44 5 Total Collisions 22 37 -41 236 250 -6 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 1 2 0 2 1 0 0 6 4. Persons Injured 2 2 0 3 1 0 0 8 5. P.D. Collisions 2 2 4 3 1 2 2 16 6. H&R Collisions- Parked 0 0 1 0 0 0 1 2 7. H&R Collisions- Moving 2 1 0 2 0 1 1 7 8. Vehicle vs. Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 2 3 2 4 1 1 1 14 10, H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 1 0 0 0 0 0 0 0 12. Vehicle vs. Object 1 0 0 1 1 1 0 4 Total Collisions 3 4 1 4 5 2 2 2 22 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 0 1 1 3 0 0 1 6 4. Persons Injured 0 1 1 4 0 0 2 8 5. P.D.Accidents 0 2 4 0 3 6 1 16 6. H&R Accidents- Parked 0 0 0 0 1 1 0 2 7. H&R Accidents- Moving 0 0 3 2 1 1 0 7 8. Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 3 2 3 2 4 0 14 10. H.B.D.Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 0 3 0 0 0 1 4 Total Accidents 0 3 5 3 3 6 2 22 Monthly Traffic Collisions Type -Hour- Day 5119115 Month: November Year: 2014 Type of Traffic Collision This Month'Last Month! % To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 0 2 0 2. Persons Killed 0 0 2 0 3. Injury Collisions 9 6 50 77 85 -9 4. Persons Injured 12 8 50 110 114 -4 5. P.D. Collisions 25 16 56 191 185 3 6. H&R Collisions- Parked 1 2 -50 6 7 -14 7. H&R Collisions- Moving 5 7 -29 58 60 -3 8.Vehicle vs. Bicyclist 0 0 6 10 -40 9. Motor Vehicles in Traffic 19 14 36 183 191 -4 10. H.B.D. Collisions 0 0 2 8 -75 11. Vehicle vs. Pedestrian 0 0 1 5 -80 12. Vehicle vs. Object 13 4 225 59 47 26 Total Collisions 34 22 55 270 270 0 Type of Traffic Collision 00:00 04:00 08:00 12:00 16:00 1 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 1 1 2 1 4 0 0 9 4. Persons Injured 1 1 5 1 4 0 0 12 5, P.D. Collisions 1 6 4 3 5 3 3 25 6. H&R Collisions- Parked 0 0 0 0 0 0 1 1 7, H&R Collisions- Moving 1 1 0 0 0 1 2 5 8.Vehicle vs. Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 1 4 3 4 6 1 0 19 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 1 0 0 0 0 0 0 0 12. Vehicle vs. Object 1 3 3 0 2 2 2 13 Total Collisions 2 7 6 4 9 3 3 34 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 2 0 3 0 1 1 2 9 4. Persons Injured 5 0 3 0 1 1 2 12 5. P.D. Accidents 6 4 8 1 3 3 0 25 6. H&R Accidents- Parked 0 0 1 0 0 0 0 1 7. H&R Accidents- Moving 1 2 1 0 0 1 0 5 8.Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 4 2 5 1 3 3 1 19 10. H.B.D. Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 3 2 5 0 1 1 1 13 Total Accidents 8 4 11 1 4 4 2 34 Monthly Traffic Collisions Type -Hour- Day 5119115 Month: December Year: 2014 Type of Traffic Collision This Month Last Month '/o To Date To Date % Change This Year Last Year Change 1. Fatal Collisions 0 0 2 0 2. Persons Killed 0 0 2 0 3. Injury Collisions 4 9 -56 81 98 -17 4. Persons Injured 7 12 -42 117 141 -17 5. P.D. Collisions 18 25 -28 209 203 3 6. H&R Collisions-Parked 1 1 0 7 9 -22 7. H&R Collisions-Moving 4 5 -20 62 67 -7 8. Vehicle vs. Bicyclist 0 0 6 10 -40 9. Motor Vehicles in Traffic 16 19 -16 199 211 -6 10. H.B.D. Collisions 0 0 2 9 -78 11. Vehicle vs. Pedestrian 0 0 1 5 -80 12. Vehicle vs. Object 4 13 -69 63 55 15 Total Collisions 22 34 -35 292 301 -3 Type of Traffic Collision 00:00 1 04:00 08:00 12:00 16:00 20:00 Unk. Total 03:59 07:59 11:59 15:59 19:59 23:59 1. Fatal Collisions 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Collisions 0 2 1 1 0 0 0 4 4. Persons Injured 0 3 3 1 0 0 0 7 5. P.D. Collisions 0 4 2 8 2 1 1 18 6. H&R Collisions- Parked 0 1 0 0 0 0 0 1 7. H&R Collisions- Moving 0 0 0 2 0 1 1 4 8.Vehicle vs. Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 4 3 8 1 0 0 16 10. H.B.D. Collisions 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 0 0 1 1 1 1 4 Total Collisions 0 6 3 9 2 11 1 t 22 Type of Traffic Collision Sun Mon Tue Wed Thur Fri Sat Total 1. Fatal Accidents 0 0 0 0 0 0 0 0 2. Persons Killed 0 0 0 0 0 0 0 0 3. Injury Accidents 0 1 1 1 0 1 0 4 4. Persons Injured 0 3 1 2 0 1 0 7 5. P.D.Accidents 0 6 3 4 3 0 2 18 6. H&R Accidents-Parked 0 1 0 0 0 0 0 1 7. H&R Accidents- Moving 0 1 1 1 0 0 1 4 8. Vehicle vs Bicyclist 0 0 0 0 0 0 0 0 9. Motor Vehicles in Traffic 0 6 2 4 3 1 0 16 10, H.B.D. Accidents 0 0 0 0 0 0 0 0 11. Vehicle vs. Pedestrian 0 0 0 0 0 0 0 0 12. Vehicle vs. Object 0 0 2 0 0 0 2 4 Total Accidents 0 7 4 5 1 3 1 2 22 CHARTS GRAPHS City of Vernon Traffic Engineering Division Collisions Affected by Weather Raining 3% Cloud Clear .--^' Wind 92% _ *^ 0% --- Other 0% l Fog 1% Not Stated 0% ti Collisions Affected by Lighting Conditions if Dark•)Ughts Daylight Dusk Q/Dawn 75 Not Stated 2% Dark-No Street Lights 0% Dark-Street Lights Not Functioning 0% 1/1/2014 - 12/31/2014 Total Collisions: 292 City of Vernon Traffic Engineering Division Involved With Parked Motor Vehicle .6% Fix Other Object 3% Motor Vehicle on Other Roadway r 2% Pedestrian lt�Not Stated 0% Bicycle 2% ti + Other Motor Vehicle Non-Collision 67% 0% Train 1% Extent of Injury Cor.•piaiiitofPain l� Property Damage Only ! :- Other Visible Injury 71% 9% Severe Injury Fatal v � <1% 1/1/2014 - 12/31/2014 Total Collisions: 292 City of Vernon Traffic Engineering Division Primary Collisions Factors Unsafe Starting or Backing 5% Following Too Closely Traffic Signal and Signs 3% 5% Driving Under Influence 1% Other Improper Driving Impro 1% 1 Other Than Driver 1% Unknown Improper Passing 7% �` 2% Hazardous Parking <1 Pedestrian Violation <1 Unsafe Speed Other Hazardous 23% Movement 2% Unsafe Lane Change Hazardous Parking 18% 0% �. Not Stated Auto RM Wolaho 4 1% 12°•� Other <1% Collision Type i� Rear-End ' 23 Broadside � 23 i 1 Head-On 6% \:-: 7Object Other Sideswipe 4% 27°,, H Vehicle/Ped 1% Not Stated I 0% 1 Overturned 1% 1/1/2014 - 12/31/2014 Total Collisions: 292 1 co O ° ` N rn ro i 1 0 � O O N 04 M 0 O O cn N Z 0 1 00 O O O Cl) � N J m O O J C) N O N C, O LO CC) UON CO\l FL � LL O N - - O N co I L O N N a� d- N � O O O O O O O O O O O Q') (D QC) O Ln O LO Itt M co N N SUOISIlloo O U) LLI 3: LL W N 't LL cc o � N N N 0 � O N cl) Cf) � M F- Z ® Ci) (0 ; o J J O � — V � 4 O O O O O O O O f` co In d' m N r- suoisilloo N J� co - - - N N _ DO Z - 00 N 0 N N T N �� CC N cn z LT I I Ocn N _I 0 � V N 9 e y ti N � o LO o LO o LO o LO o It cM ce) N N T11- r- suoisilloo o� -o� N 2 �J -oCD o; J� W a y'O O o 00 Fn N ti N y �o 0 00 LO JD 9� �y 000 0� � oLO � c No 0 0 suolsilloo 04 Q NLL 9 O c 0 o co T M co C 4 4i4, m M Z � o` r M cn � �0<1 O LO O Ln O Ln O LO O �k ,qT M cM N N •- suoisilloo 2014 COLLISIONS Ilk } y I IF BY INTERSECTION MIDBLOCK TOP TEN City of Vernon Traffic Engineering Department High Incidence Intersection Report 5/19115 Number of collisions for the top 10 locations From 1/1/2014 to 12/31/2014 Rank Intersection Total Collisions 1 Pacific Boulevard at Santa Fe Avenue 10 2 Atlantic Boulevard at Bandini Boulevard 9 3 Atlantic Boulevard at District Boulevard 8 4 Soto Street at 26th Street 6 5 Vernon Avenue at Alameda Street West 6 6 Vernon Avenue at Santa Fe Avenue(N) 5 7 55th Street at Santa Fe Avenue 4 8 Bandini Boulevard at Soto Street 4 9 Leonis Boulevard at Downey Road 4 10 Pacific Boulevard at Leonis Boulevard 4 10 Santa Fe Avenue at 37th Street 4 Settings Used For Query Parameter Setting Starting Date 1/1/2014 Ending Date 12/31/2014 Intersection Related Intersection Related Only Minimum Number of Collisions 1 a) C O o ii y O o o • CD O r mco <D c0 d' V d' of d' C U o r ZI yal CD cm O O CD O CD O O O (n O 0 O O r CoO Cm r O O O O O N M r M >I al \ 0 0 0 0 0 0 0 0 o r o r co LO � C o 7 7 O O O O O O O O O O O O op O 1to 0 =l o O r N r O N O r r r O CD d' co r � d o O 6I r r M M N O N O M r r m N r CO N N O O O O r r N N r A co r cC CI = O O r O O O O r r O O O M CD w 0 y C w N N r N N r N O O N N LO W N r M N L 0 U O N 4- W 2 L . r L co E c �°- a E a 3 p m cc c`o y Z o CO T r 'c °' m d V > p > C •• ., cc a) Q. Q- N Q m m �`O+ > Q ` O y 16 L > al W �+ � p C L m E a7 y 0 J ti > O o cn m = M w. r R A o N _ m c o O O > > > N m a) (n > m m L �N N c d O A C C m 4) d N T O 7 O O a+ a) a7 ., G 7 7 O •Q T V m m m L Q Q ` m m m a! r 0 V d Ci 67 0 �+ � C �.+ •C N V LL � �+ + N w A G1 C 0 u cc R r C C r C O v C W d O d Q Q w > > b m J G. fn o U U) LO m E M leO ti a0 CD CD 44) V E"' C Lo — Z 0 N C c a a a a o CD o as o m m � a o 011+ r � O U 0 � v ZI c coa LO a N a N CI)0 . M a 00 C C d RO r G N p N r r E O. r r N N O U = o o 0 o G r O O C r O M It 0 L o CD d c 9 .c r jr2- p o 0 o c CD m H id z y � o R � W p L 0 a+ w G c R v p N 3 0 Nr R r > O p 41 Gl Gl O ' CL N Q CO •_ y •C a+ U) C fq N N +r lL t6 N d p .N r r co m 0 ` E lL Q J M • L N r ,t+ a+ R A 0 0 a+ R R N Q 0) cc cc R N a 4 m ca ca R p ccA 3 a+ N C .O O r > ai a>i r 7 m a>i aci L y O c y y aci a0+ p G o Q N O O p O y > > m m LL C ca m m o c c c .0 � 2 rN c c c O O p > m o. vyc� L. > � W d ca "- v N L E p Y r N a v� to n oo rn o 0 _ Z U. [L' City of Vernon Traffic Engineering Division High Incidence Midblock Report 5/19/15 Number of collisions for the top 10 locations From 1/1/2014 to 12/31/2014 Rank Segment Total Collisions 1 ATLANTIC BOULEVARD from 3030 ATLANTIC DRIVEWAY to DISTRICT BOULEVARD 13 2 SANTA FE AVENUE from 38TH STREET to VERNON AVENUE 4 3 SLAUSON AVENUE from ALCOA AVENUE to BOYLE AVENUE 4 4 SOTO STREET from 37TH STREET to 26TH STREET 4 5 LEONIS BOULEVARD from ALCOA AVENUE to BOYLE AVENUE 3 6 VERNON AVENUE from HAWTHORNE AVENUE to ALAMEDA STREET EAST 3 I 7 SLAUSON AVENUE from DOWNEY ROAD to ALCOA AVENUE 3 8 FRUITLAND AVENUE from BOYLE AVENUE to SOTO STREET 3 Settings Used For Query Parameter Setting Starting Date 1/1/2014 Ending Date 12/31/2014 Minimum Number of Collisions 3 W Wain Z 0 Z F wi �l ZJ� aWf 0 O U G. OF / P N F— / ;L V , , o / U � W O / O I � Fi ,a 0 , W p. I 0 � f - I e I i I L-7 V' I � I lV - P n��`❑ I I O F s INTERSECTION COLLISION DIAGRAMS WITH FIVE OR MORE COLLISIONS Color Legend - Highest Degree of Injury Maroon=Fatal Purple=Severe Injury Green Other Visible Injury Tval=Complaint of Pain Dark Blue=Property Damage Only Collision Diagram Horizontal Street: PACIFIC BOULEVARD From: 1/1/2014 TO: 12/31/2014 Vertical Street:SANTA FE AVENUE Date Prepared: 5/19/2015 Unsf p nsf Spd N 2/8/4 U pd Cr�y�r 14 Unsf L nsf Spd 8/28/14 Improp Turn 5/4114 Unsf Lane Chg 4 Impromprop Turn 9/8114 Othr Haz Mvmt 8/11/14 11/18/14 12/26/1 UnsfSpd Unsf S d Unsf S�j Number of Collisions Legend Right Turn Pedestrian ®-- Moving Vehicle Fixed Object 5 Property Damage Only � Left Turn iq Stopped Vehicle 0z 5 Injury Collisions Bicycle �] Backing Vehicle �-- Sideswipe 0 Fatal Collisions Ran Off Road �— DUI 10 Total Collisions Movement �— Day 0 Injury Unknown .00 — Night 0 Fatal Collision Diagram Horizontal Street: BANDINI BOULEVARD From: 1/1/2014 To: 12/31/2014 Vertical Street:ATLANTIC BOULEVARD Date Prepared: 5/19/2015 /14 Unsf Lan Unsf Lane Chg N 8/15114 7/4/14 WrongSl U larUBk ImproTurn 5/1' 7/14 Foll2dose 9/11114 u�sf Spd Improp Turn 11/13U Unsf L ne Chg 10/3/14 Unsf S Number of Collisions L_egend Right Turn �j Pedestrian .— Moving Vehicle Fixed Object 8 Property Damage Only .Q Stopped Vehicle Left Turn 1 Injury Collisions Backing Ran Off Road Vehicle O Bicycle � 0 Fatal Collisions � ® Sideswipe y DUI 9 Total Collisions Movement --4 Day O Injury ®..... Unknown .4d — Night Op Fatal Collision Diagram Horizontal Street: DISTRICT BOULEVARD From: 1/1/2014 TO: 12/31/2014 Vertical Street:ATLANTIC BOULEVARD Date Prepared: 5/19/2015 N 9/25114 9/15/14 5/10114 9/15/14 uto R/W I prop Turn Unknow Uns L Chg F'S/!2qs','S14,,n. 8125/14 Unsf Lane Chg 1/13/14 UnsfSp Number of Collisions depend Right Turn Pedestrian ® Moving Vehicle Fixed Object 7 Property Damage Only Left Turn Stopped Vehicle 1 Injury Collisions BackingVehicle O Bicycle 0 Fatal Collisions �ti Ran Off Road Sideswipe DUI 8 Total Collisions Movement Day 0 Injury Collisions Not Plotted: 1 Unknown Night (0 Fatal Collision Diagram Horizontal Street: 26TH STREET From: 1/1/2014 TO: 12/31/2014 Vertical Street:SOTO STREET Date Prepared: 5/19/2015 N 4 Unsf 8/31/14 Unsf Lan Chg Sigs/Sign 1/2/14 Other u114 A Autoo R/W 6/23/14 Sigs/Signs 3/6114 Unsf S*F Number of Collisions Legend Right Turn 'N Pedestrian �— Moving Vehicle Fixed Object 4 Property Damage Only �._� Stopped vehicle Left Turn 2 Injury Collisions Backing Vehicle Bicycle �� 9 �— Sideswipe DUI 0 Fatal Collisions �ti Ran Off Road < 6 Total Collisions Movement �-- Day O Injury Unknown ®— Night (a Fatal Collision Diagram Horizontal Street:VERNON AVENUE From: 1/1/2014 TO: 12/31/2014 Vertical Street:ALAMEDA STREET WEST Date Prepared: 5/19/2015 4 Auto RNV N o Improp Tu-:1 8f221Unknown Unknown Q � 9/30/14 �— ImpropTurn 6/26114 Unsf Lan 1114 Foll2clo F. Number of Collisions Legend Right Turn Pedestrian �— Moving Vehicle Fixed Object 5 Property Damage Only �� Stopped Vehicle Left Turn 1 Injury Collisions Stopped Vehicle O Bicycle 0 Fatal Collisions Backing R — Sideswipe DUI Ran Off Road — 6 Total Collisions Movement Day 0 Injury ®..... Unknown ,!A — Night Qp Fatal Collision Diagram Horizontal Street:VERNON AVENUE From: 1/1/2014 TO: 12/31/2014 Vertical Street: SANTA FE AVENUE(N) Date Prepared: 5/19/2015 4 Wrong Side N o 914/14 Unsf Spd 11/24/14 10/140sknown Un Lane Chg Wig/14 Unsf SPF Number of Collisions Legend Right Turn IN Pedestrian �— Moving Vehicle Fixed Object 4 Property Damage Only Stopped Vehicle Left Turn 1 Injury Collisions Backing Vehicle O Bicycle 0 Fatal Collisions �— Sideswipe DUI Ran Off Road 5 Total Collisions Movement �— Day 0 Injury Unknown 0— Night (0 Fatal Collision Diagram Horizontal Street:55TH STREET From: 1l1/2014 TO: 12/31/2014 Vertical Street:SANTA FE AVENUE Date Prepared: 5/19/2015 N 9/15/14 C7ns 11/16/14 Auto R/W 1/6/14 Sigs/Signs 5/6/14 Unsf S Number of Collisions Le-gend Right Turn Pedestrian �— Moving Vehicle Fixed Object 2 Property Damage Only �� Stopped Vehicle Left Turn 2 Injury Collisions Backing Vehicle 0 Bicycle 0 Fatal Collisions �—� Ran Off Road �— Sideswipe LFatal 4 Total Collisions �— Day O Movement Unknown �— Night � Collision Diagram Horizontal Street: BANDINI BOULEVARD From: 1l1/2014 TO: 12/31/2014 Vertical Street:SOTO STREET Date Prepared: 5/19/2015 417/14 Unsf Unsf Spd N 11/16/14 Auto RIW I 11/16/14 Unknown 5/16/14 Unknow Number of Collisions Legend Right Turn Pedestrian -IQ — Moving Vehicle � Fixed Object 4 Property Damage Only Stopped Vehicle Left Turn 0 Injury Collisions BackingVehicle 0 Bicycle 0 Fatal Collisions Sideswipe y DUI Ran Off Road 4 Total Collisions Movement <j— Day Q Injury ® Unknown -4§ — Night 0 Fatal Collision Diagram Horizontal Street: LEONIS BOULEVARD From: 1/1/2014 To: 12/31/2014 Vertical Street: DOWNEY ROAD Date Prepared: 5/19/2015 N 9/9/14 Improp Turn 5/28/14 Cris r9118/14 rl/,gl/1/4 SigsSignsSsSigns Number of Collisions Legend Right Turn �j Pedestrian �— Moving Vehicle Fixed Object 2 Property Damage Only Stopped Vehicle�� Left Turn 2 Injury Collisions Stopped Vehicle 0 Bicycle 0 Fatal Collisions Backing Sideswipe DUI Ran Off Road 4 Total Collisions Movement Day O Injury Unknown -IQ Night Qp Fatal Collision Diagram Horizontal Street: LEONIS BOULEVARD From: 1/1/2014 TO: 12/3112014 Vertical Street: PACIFIC BOULEVARD Date Prepared: 5/19/2015 a Unsfnsf Lane Chg N 11/28/1 Im prop Turn 3/17/14 Ped R/w 2/23/14 Un Number of Collisions Legend � Right Turn � Pedestrian �— Moving Vehicle Fixed Object 3 Property Damage Only 4 Stopped Vehicle Left Turn 1 Injury Collisions Bicycle .g*--> Backing Vehicle Sideswipe 0Z 0 Fatal Collisions Ran Off Road �— y DUI 4 Total Collisions Movement <a— Day O Injury Unknown -19— Night Qp Fatal Collision Diagram Horizontal Street:37TH STREET From: 1/1/2014 TO: 12/31/2014 Vertical Street: SANTA FE AVENUE Date Prepared: 5/19/2015 N 1019/14 Unsf Lane Chg FF 1115114 Unsf Lane Chg 4/15/14 Auto RM 11/30/1 Unsf S Number of Collisions Legend Right Turn Pedestrian �-- Moving Vehicle 3 Property Damage Only Left Turn Fixed Object p � 9 y ®--� Stopped Vehicle 1 Injury Collisions Vehicle Bicycle Backing 0 Fatal Collisions �-3 ® Sideswipe Ran Off Road y DUI 4 Total Collisions Movement o-- Day 0 Injury ® Unknown ®- Night 0 Fatal MIDBLOCK COLLISION REPORTS WITH FOUR OR MORE COLLISIONS City of Vernon Traffic Engineering Division Collisions by Severity/Type /PCF /Lighting 511912015 Date Range Reported: 11112014- 1213112014 ATLANTIC BOULEVARD from 3030 ATLANTIC DRIVEWAY to DISTRICT BOULEVARD TotalCollisions: 13 Collision Type Broadside 0 Head-On 0 Hit Object 1 Not Stated 0 Other 0 Overturned 0 Rear-End 6 Sideswipe 6 Vehicle-Pedestrian 0 Total: 13 Day/Night Day 9 Night 4 Unknown 0 Total: 13 Highest Degree of Injury Complaint of Pain 0 Fatal 0 Other Visible Injury 1 Property Damage Only 12 Severe Injury 0 Total: 13 Primary Collision Factor Auto R/W Violation 0 Brakes 0 Driving Under Influence 0 Fell Asleep 0 Following Too Closely 1 Hazardous Parking 0 Impeding Traffic 1 Improper Passing 0 Improper Turning I Lights 0 Not Stated 0 Other 1 Other Equipment 0 Other Hazardous Movement 0 Other Improper Driving 0 Other Than Driver 0 Other Than Driver or Ped 0 Ped or Other Under Influence 0 Ped R/W Violation 0 Pedestrian Violation 0 Traffic Signals and Signs 0 Unknown 0 Unsafe Lane Change 4 Unsafe Speed 5 Unsafe Starting or Backing 0 Wrong Side of Road 0 Total: 13 City of Vernon Traffic Engineering Division Collisions by Severity/ Type / PCF / Lighting 511912015 Date Range Reported: 11112014-1213112014 SANTA FE AVENUE from 38TH STREET to VERNON AVENUE(N) TotalCollisions: 4 Collision Type Broadside 1 Head-On 0 i Hit Object 0 Not Stated 0 Other 0 Overturned 0 Rear-End 1 Sideswipe 2 Vehicle-Pedestrian 0 Total: 4 Day/Night Day 3 Night 1 Unknown 0 Total: 4 Highest Degree of Injury Complaint of Pain 0 Fatal 0 Other Visible Injury 0 Property Damage Only 3 Severe Injury 1 Total: 4 Primary Collision Factor Auto R/W Violation 1 Brakes 0 Driving Under Influence 0 Fell Asleep 0 Following Too Closely 0 Hazardous Parking 0 Impeding Traffic 0 Improper Passing I Improper Turning 0 Lights 0 Not Stated 0 Other 0 Other Equipment 0 Other Hazardous Movement 0 Other Improper Driving 0 Other Than Driver 0 Other Than Driver or Ped 0 Ped or Other Under Influence 0 Ped R/W Violation 0 Pedestrian Violation 0 Traffic Signals and Signs 0 Unknown 0 Unsafe Lane Change I Unsafe Speed I Unsafe Starting or Backing 0 Wrong Side of Road 0 Total: 4 City of Vernon Traffic Engineering Division Collisions by Severity / Type /PCF /Lighting 511912015 Date Range Reported:11112014-1213112014 SLA USON A VENUEfrom ALCOAAVENUE to BOYLEAVENUE TotalCollisions: 4 Collision Type Broadside 1 Head-On 0 Hit Object 1 Not Stated 0 Other 1 Overturned 0 Rear-End 1 Sideswipe 0 Vehicle-Pedestrian 0 Total: 4 Day/Night Day 3 Night I Unknown 0 Total: 4 Highest Degree of Injury Complaint of Pain 1 Fatal 0 Other Visible Injury 1 Property Damage Only 2 Severe Injury 0 Total: 4 Primary Collision Factor Auto R/W Violation 0 Brakes 0 Driving Under Influence 0 Fell Asleep 0 Following Too Closely 0 Hazardous Parking 0 Impeding Traffic 0 Improper Passing 0 Improper Turning 0 Lights 0 Not Stated 0 Other 0 Other Equipment 0 Other Hazardous Movement 0 Other Improper Driving 0 Other Than Driver 0 Other Than Driver or Ped 0 Ped or Other Under Influence 0 Ped R/W Violation 0 Pedestrian Violation 0 Traffic Signals and Signs 0 Unknown 0 Unsafe Lane Change 0 Unsafe Speed 2 Unsafe Starting or Backing 1 Wrong Side of Road 1 Total: 4 City of Vernon Traffic Engineering Division Collisions by Severity/Type/PCF /Lighting 511912015 Date Range Reported: 11112014-1213112014 SOTO STREET from 37TH STREET to 26TH STREET TotalCollisions: 4 Collision Type Broadside 1 Head-On 0 Hit Object 2 Not Stated 0 Other 0 Overturned 0 Rear-End 1 Sideswipe 0 Vehicle-Pedestrian 0 Total: 4 Day/Night Day 2 Night 2 Unknown 0 Total: 4 Highest Degree of Injury Complaint of Pain 2 Fatal 0 Other Visible Injury 1 Property Damage Only 1 Severe Injury 0 Total: 4 Primary Collision Factor Auto R/W Violation 1 Brakes 0 Driving Under Influence 0 Fell Asleep 0 Following Too Closely 0 Hazardous Parking 0 Impeding Traffic 0 Improper Passing 0 Improper Turning 0 Lights 0 Not Stated 0 Other 0 Other Equipment 0 Other Hazardous Movement 0 Other Improper Driving 0 Other Than Driver 0 Other Than Driver or Ped 0 Ped or Other Under Influence 0 Ped R/W Violation 0 Pedestrian Violation 0 Traffic Signals and Signs 0 Unknown 0 Unsafe Lane Change I Unsafe Speed I Unsafe Starting or Backing I Wrong Side of Road 0 Total: 4 �` i yI00FI. CLERKS�1�1^� ',Yt'tT IN�Ja STAFF REPORT CITY ADMINISTRATION DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: Mark C.Whitworth, City Administrator Originator: Teresa McAllister,Director of Hum esou es RE: Approval of a Resolution Adopting an Amended an Restated Citywide Fringe Benefits and Salary Resolution in Accordance with Government Code Section 20636(B)(1) and Repealing All Resolutions in Conflict Therewith Recommendations A. Find that approval of the resolution proposed in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment. B. Adopt the attached resolution amending and restating the Citywide Fringe Benefits and Salary Resolution, effective June 28, 2015, to reflect the following provisions: 1) Amend Exhibit A, Classification and Compensation Plan, as follows: a) In accordance with City Council adoption of the fiscal year 2015-2016 budget on June 2, 2015, revise or add the following job classifications with the corresponding salary ranges: • Add Assistant Fire Marshall (M29 - $7,221 - $8,778 — Management Group) ■ Add Industrial Development Director(E39 - $11,762 - $14,297— Executive Group) ■ Change salary grade for Utilities Customer Service Supervisor to (M26 - $6,238 - $7,582 —Management Group) ■ Add Police Community Services Officer(G16 - $3,830 - $4,655— Teamsters Group) ■ Add Administrative Fire Battalion Chief salary range (FA38 - $11,203 - $13,616 - Fire Management Group) Page 1 of 7 b) In accordance with Citywide succession planning efforts, add the following unfunded job classifications with the corresponding salary ranges to create future career development paths within the respective job series: ■ Add Building Inspector(G25 - $5,940 - $7,221- Teamsters Group) • Add Senior Electrical Inspector(G27 - $6,550 - $7,962- Teamsters Group) ■ Add Senior Plumbing and Mechanical Inspector(G27 - $6,550 - $7,962—Teamsters Group) c) Add salary range C17 for the Senior Administrative Assistant (Conf dentiao classification, which is the same as the salary range for the Senior Administrative Assistant classification($4,021 $4,887 per month). d) Correct Step 4 of Police Dispatcher Lead to $5,388 per month and add salary range FA31 ($7,962 - $9,677) for forty(40) hour work schedule of an Administrative Fire Captain. e) Implement the changes set forth in the various Memoranda of Understanding between the City of Vernon and the respective employee organizations. 2) Amend Section 7, Sick Leave, to include part-time and temporary sick leave accruals. 3) Amend Section 11, Automobile Allowance and Reimbursement for Expenses, to add the Industrial Development Director and Administrative Fire Battalion Chief to the list of classifications eligible for Automobile Allowance. FY 2015-2016 Budget Adoption—New and Revised Classifications On May 5 and May 19, 2015, as part of the budget adoption process for fiscal year 2015-2016, City Department Heads reviewed long-term and immediate staffing needs to meet the current and projected operational needs of their departments and the City. A public hearing on the fiscal year 2015-2016 budget was held on June 2, 2015. The staff report outlined the justification process and position allocation for each of the new and revised classifications listed in this staff report, among other position allocation changes for existing classifications. On June 2, 2015, City Council adopted Resolution No.2015-31 approving the budget for fiscal year 2015-2016. Through the process, the following classifications were approved to be created/revised and included in the citywide budget for fiscal year 2015-2016: add Assistant Fire Marshall (M29 - $7,221 - $8,778- Management Group); add Police Community Services Officer (G16 - $21.0962 hr. - $26.8558 hr. — Teamsters Group); add Industrial Development Director (E39 - $11,762 $14,297, Executive); add Administrative Fire Battalion Chief(FA38 - $11,203 - $13,616 — Fire Management Group); change salary grade for Utilities Customer Service Page 2 of 7 Supervisor to M26 - $6,238 - $7,582. The job description for each new classification is attached herewith. Staff conducted a survey of the new classifications from the twelve local jurisdictions approved by City Council that were considered comparable to the City of Vernon. The salary survey was conducted in compliance with the City of Vernon Personnel Policy I1-3, Salary Plan Administration, adopted by City Council on September 17, 2013. The recommended salary ranges for the new positions are based upon the 75"' percentile of the comparable labor market and are internally aligned with similarly situated job families. The attached resolution amends Exhibit A of the Citywide Fringe Benefit and Salary Resolution to add/revise the following classifications and corresponding salary ranges as a result of the survey analysis: Classification Job Exempt Salary Monthly Salary Code FLSA Grade_ Assistant Fire Marshall 5033 NE M29 $7,221 - $8,778 (new) Industrial Development 3010 E E39 $11,762 - $14,297 Director(new) Administrative Fire Battalion 5025 NE FA38 $11,2013 - $13,616 Chief(added salary range) Police Community Services Officer(added) 4123 NE G16 $3830 - $4655 Utilities Customer Service 8530 NE M26 $6,238 - $7,582 Supervisor(revised) In accordance with the Meyers-Milias Brown Act, City staff met and conferred with affected bargaining units regarding the addition of the various classifications and corresponding salary ranges for their respective bargaining unit. Citywide Succession Development—New Unfunded Classifications A strong succession development program reduces the effect of lost leadership and institutional knowledge. The program is designed to identify and foster the next generation of leaders through mentoring, training and assignments to enhance the skills, and abilities of employees. Department heads continue to identify and develop opportunities for cross-training of employees and ensure a succession development plan that provides opportunities for employees to grow while ensuring a competent workforce and sustainability of programs and services offered to residents and businesses. As part of the citywide succession development plan, the below unfunded classifications are recommended as part of career development paths within classification series. The development of career paths will formulate leadership skills for success in the future and retention of talent. The job description for each new classification is attached herewith. Page 3 of 7 Classification Job FLSA Salary Monthly Salary Code Exempt Grade Building Inspector(new) 7230 NE G25 $5,940 - $7,221 Sr. Electrical Inspector 7213 NE G27 $6,550 - $7,962 (new) Sr.Plumbing&Mechanical 7217 NE G27 $6,550 - $7,962 Inspector(new) Classification and Compensation Plan Updates and Corrections A Senior Administrative Assistant (Confidential) classification, which is the same as the salary range for the Senior Administrative Assistant classification ($4,021 - $4,887 per month), needs to be added to the Classification and Compensation Plan, as the person filling this position will be assigned, at least 50% of the time, to the Information Technology Division. A minor correction is necessary to Step 4 of the Police Dispatcher, Lead, which should read $5,388 per month. The addition of the existing 40-hour work schedule Administrative Fire Captain hourly range to the Classification and Compensation Plan in accordance with Government Code Section 20636(b)(1), is also needed. Memoranda of Understanding (MOU) Related Updates The City Council adopted the below resolutions approving several Memoranda of Understanding ("MOUs") setting forth certain terms and conditions for employment for classifications represented by respective employee organizations. Included in the adoption of the MOUs is a 1.5% cost of living increase (excluding certain Y-rated employees) to take effect the pay period containing July 1, 2015. June 3, 2014 Resolution No. 2014-26 Vernon Police Management Association July 15, 2014 Resolution No. 2014-45 IBEW Local 47 July 15, 2014 Resolution No. 2014-47 Vernon Fire Management Association Sept. 16, 2014 Resolution No, 2014-57 Vernon Police Officers' Benefit Association Oct. 21, 2014 Resolution No. 2014-66 Teamsters Local 911 Dec. 16, 2014 Resolution No, 2014-73 Vernon Firemen's Association The attached resolution is to amend Exhibit A of the Citywide Fringe Benefits and Salary Resolution incorporating the agreed upon 1.5% cost of living increase made between the City Council of the City of Vernon and the respective employee organizations effective June 28, 2015 (the beginning of the pay period containing July 1, 2015). Confidential and Manap-ement Employees Employees in the classifications designated as "confidential and management" are not designated for purposes of recognition and representation in collective bargaining, and are therefore not subject to the provisions of the Meyers-Milias-Brown Act. Page 4of7 On June 2, 2015, City Council approved the 1.5% cost of living increase to classifications designated as "confidential and management" as part of the fiscal year 2015-2016 budget adoption. This practice is consistent with City Council's previous adoption of the 1.5% cost of living increase applied on January 1, 2015 to ensure internal equity among classification relationships and ongoing maintenance of the Citywide Classification and Compensation Plan. Executive and Council Members In addition, the adoption of the fiscal year 2015-2016 budget included the 1.5% cost of living increase for executive classifications effective June 28, 2015. This will ensure internal equity among classification relationships and avoid compaction among classifications going forward. The below table provides the salary range consistent with the City's grade and step pay plan, and the salaries for executive classifications. Current Grade 1.5%COLA 1.5%COLA Recommended Salary Min Max Salary City Administrator $24,092.00 50 $20,117.00 $24,453.00 �$24,453.00 Director of Gas& $21,852.00 48 $18,248.00 $22,180.00 $22,180.00 Electric City Attorney $20,808.00 47 $17,378.00 $21,315.00 $21,120.00 Police Chief * $19,820.00 46 $16,551.00 $20,117.00 $20,117.00 Director of PW, $19,820.00 46 $16,551.00 $20,117.00 $20,117.00 Water& Dev. Services Fire Chief ** $18,107.00 45 $15,763.00 $19,159.00 $18,379.00 Director of Health $17,121.00 43 $14,297.00 $17,378.00 $17,378.00 Director of Finance Y1 $17,500.00 41 $12,968.00 $15,763.00 $17,500.00 Y1-$17,500.00 Director of HR Y1 $16,333.34 40 $12,351.00 $15,013.00 $16,333.34 Y1-$16,333.34 City Clerk $11,037.00 38 $11,203.00 $13,616.00 $11,203.00 *Not Eligible for Premium Pay ** Eligible for Premium Pay The amendments to Exhibit A of the Citywide Fringe Benefits and Salary Resolution also include the application of the 1.5% cost of living increase to City Council member salaries. Pursuant to Chapter 3.11 of the Vernon City Charter, the City Council may only increase the base compensation of Council members through cost of living adjustments. Effective June 28, 2015, the new monthly base salary for Council members would be $2,146. This recommendation is consistent with the City Council's application of the 1.5% cost of living increase previously approved effective January 1, 2015. Page 5 of 7 i Fringe Benefits Section 7—Sick Leave The new Paid Sick Leave law enacted by AB 1522, Healthy Workplaces, Healthy Families Act of 2014, goes into effect July 1, 2015. The new law entitles all part-time and temporary employees to accrue up to three (3) paid sick days in a 12-month period for the diagnosis, care, or treatment of an existing health condition or preventative care for an employee or an employee's family member. In preparation for the effective changes on July 1, 2015, the City must update its current sick leave policies and practices to ensure compliance with the Paid Sick Leave Law. As such, the Paid Sick Leave Law now applies to most any employee, including temporary, extra help, part- time and seasonal employees who work 30 or more days within a year from when employment commences. Part-time and temporary employees shall be eligible to accrue paid sick leave at a rate of at least one (1) hour per every thirty (30) hours worked beginning on the first date of employment or July 1, 2015, whichever is later. All employees may accrue up to a maximum of twenty-four (24) hours (3-days) per 12-month employment year. The Paid Sick Leave Law also requires employers to allow employees to carry over paid sick days to the following year of employment, up to an accrual cap of six (6) days/forty-eight(48)hours of sick leave. The Paid Sick Leave Law exempts employees who are covered by a collective bargaining agreement since the agreements already provide a paid sick leave policy. The City is not required to provide additional sick days since the current agreements satisfy the accrual, carry over, and use requirements of the Paid Sick Leave Law and provide no fewer than three paid sick days (24 hours) each year for full-time employees. I Fringe Benefits Section 11 Additions to Automobile Allowance and Reimbursement for Expenses In line with similarly situated classifications, it is recommended that the newly created classifications of Industrial Development Director and Administrative Fire Battalion Chief be added to the list of employees eligible to receive a monthly automobile allowance or the stated alternative. Fiscal Impact All costs associated with the aforementioned changes have been included in the fiscal year 2015- 2016 budget, and each department presented detailed breakdowns of its respective costs to City Council during the respective departmental budget study session presentations on May 5 and May 19, and during the public hearing on June 2, 2015. Attachments 1. Resolution Adopting an Amended and Restated Citywide Fringe Benefits and Salary Resolution 2. Assistant Fire Marshal Job Description 3, Industrial Development Director Job Description Page 6of7 Attachments Continued 4, Police Community Services Officer Job Description 5. Building Inspector Job Description 6. Senior Electrical Inspector Job Description 7, Senior Plumbing and Mechanical Inspector Job Description Page 7of7 Attachment 1 Resolution Adopting an Amended and Restated Citywide Fringe Benefits and Salary Resolution i RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ADOPTING AN AMENDED AND RESTATED CITYWIDE FRINGE BENEFITS AND SALARY RESOLUTION IN ACCORDANCE WITH GOVERNMENT CODE SECTION 20636 (b) (1) AND REPEALING ALL RESOLUTIONS IN CONFLICT THEREWITH WHEREAS, on March 17 , 2015, the City Council of the City of Vernon adopted Resolution No. 2015-14 , adopting an amended and restated Citywide Fringe Benefits and Salary Resolution to (add Section 22- Stand-By Policy to the Fringe Benefits and Salary Resolution; and WHEREAS, by memorandum dated June 16, 2015, the City Administrator, in conference with the Director of Human Resources, has recommended the adoption of an amended and restated Citywide Fringe Benefits and Salary Resolution to (i) revise or add the following job classifications with the corresponding salary ranges : add Assistant I Fire Marshall, add Industrial Development Director, change the salary grade for Utilities Customer Service Supervisor, add Police Community Services Officer, add Administrative Fire Battalion Chief classification (ii) add the following unfunded job classifications with the corresponding salary ranges to the citywide classification and compensation plan for future career development paths within job series : add Building Inspector, add Senior Electrical Inspector, add I Senior Plumbing and Mechanical Inspector; correct Step 4 for Police Dispatcher Lead to $5, 388 per month and add Administrative Fire Captain hourly salary (iii) amend Section 7 to include part-time and temporary sick leave accruals (iv) amend Section 11 to add Industrial Development Director and Administrative Fire Battalion Chief to Automobile Allowance and Reimbursement for Expenses and (v) implement the changes set forth in the various Memoranda of Understanding between the City of Vernon and the respective employee organizations; and WHEREAS, the City Council desires to adopt an amended and restated Citywide Fringe Benefits and Salary Resolution, a copy of which is attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have an effect on the environment. SECTION 3 : Effective June 28, 2015, the City Council of the City of Vernon hereby approves the amended and restated Citywide Fringe Benefits and Salary Resolution, a copy of which is attached hereto as Exhibit A. SECTION 4 : All resolutions or parts of resolutions, specifically Resolution No. 2015-14, not consistent with or in conflict with this resolution are hereby repealed. - 2 - i SECTION 5 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name: Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Hema Patel, Ci Attorney 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) I 1 4 - EXHIBIT A �3 City of Vernon FRINGE BENEFITS AND SALARY RESOLUTION Effective June 28, 2015 TABLE OF CONTENTS FRINGE BENEFITS AND SALARY RESOLUTION PART 1 —FRINGE BENEFITS Introduction: .........................................................................................................4 Section1: Holiday.............................................................................................4 Section 2: Administrative Leave Time...............................................................6 Section3: Overtime..........................................................................................8 Section 4: Compensatory Time........................................................................10 Section 5: Court Time......................................................................................11 Section6: Vacation..........................................................................................12 Section 7: Sick Leave......................................................................................14 Section 8: Family Sick Leave(Kin Care).........................................................16 Section 9: Bereavement Leave........................................................................17 Section10: Jury Duty ........................................................................................19 Section 11: Automobile Allowance and Reimbursement for Expenses..............20 Section 12: Health Insurance.............................................................................22 Section 13: Dental Insurance.............................................................................24 Section 14: Vision Insurance.............................................................................25 Section 15: Life Insurance.................................................................................26 Section 16: Deferred Compensation Plan..........................................................27 Section 17: CalPERS Retirement Plan..............................................................28 Section 18: Retiree Medical Insurance..............................................................30 Section 19: Longevity Program..........................................................................32 Section 20: Bilingual Pay...................................................................................34 Section 21: Uniform Allowance..........................................................................35 Section 22. Stand-by Policy...............................................................................36 I PART II—CLASSIFICATION AND COMPENSATION Section1. Purpose...........................................................................................39 Section 2. The Compensation Plan .................................................................39 Section 3. The Classification Plan ...................................................................39 EXHIBIT A—CLASSIFICATION AND COMPENSATION PLAN.................................40 2 i I PART 1 FRINGE BENEFITS i 3 INTRODUCTION The Fringe Benefit and Salary Resolution shall apply to all employees and officers of the City of Vernon. Exceptions, additions, and/or limitations to this basic policy may be found in respective Memoranda of Understanding or employment contracts. The existence of these policies shall not create or imply any employment contract or vested right of employees. For those employees covered in respective memoranda of understanding (MOU), the provisions set forth in the applicable MOU shall prevail in the event that there is any conflict between provisions established in this Resolution and any provisions established in the respective MOU. The provisions set forth in this Resolution or as amended from time to time shall be effective upon City Council adoption, unless a specific effective date is stated therein. PART 1 —FRINGE BENEFITS Section 1. HOLIDAYS i A. Authorized holidays are as set forth in Table 1, attached hereto and incorporated herein by reference. Municipal offices shall be closed on such holidays. B. The dates for observation of holidays shall be approved by the City Council. C. If an authorized holiday falls on a Sunday, the following Monday shall be treated as the holiday. Holidays falling on a Friday, or Saturday, shall not be granted as an authorized holiday to employees. D. An employee whose regular shift assignment falls on an authorized holiday and who is required to work on that day shall be paid at his/her regular hourly rate of pay for the holiday, plus his/her regular hourly rate including any applicable overtime pay for the actual hours he/she was required to work on the authorized holiday. E. Temporary and part-time employees are not eligible for paid holidays. G. All full-time employees may use vacation time or compensatory time for a religious holiday (not listed herein as an authorized holiday) with the prior approval of the department head. If there is insufficient accumulated time, the employee may request the time as unpaid leave of absence. 4 TABLE 1 -HOLIDAY HOLIDAY Januar 1s' New Year's Da 3'd Monda in Janua -Martin Luther Ki rig Jr.Da 31 Monday in February-Presidents Da March 31'-Cesar Chavez Da The Last Monday in May—Memorial Da Jul 4'h—Inde endence Da The 11 Monda in September—Labor Da The 2"1 Monday in October—Columbus Da November 11'h—Veterans Da The_eThursday in November-Thanksgiving Da December 241h—Christmas Eve December 25"'—Christmas Da December 315'—New Year's Eve And other days as such designated by City Council. 5 Section 2.ADMINISTRATIVE LEAVE A. Executive and Management - Includes City Administrator, City Attorney, City Clerk, City Treasurer and the heads of all Departments as listed in the City Code or City Charter and their respective Deputies and Assistant Directors shall receive, effective January 1 of each calendar year, 80 hours of Administrative leave. B, The 80 hours may not be carried over into the succeeding calendar year and is lost and not eligible for cash payout if not used by December 31 of each calendar year. C. Executive and Management staff hired, promoted, or reclassified on or after April 1 of each calendar year shall be eligible to receive pro-rated administrative leave hours during the year of hire as identified below: Hired, Promoted,or Reclassified on Administrative Leave or Between January 1 —March 31 80 hours April 1 June 30 60 hours Jul 1 —Sept.30 40 hours Oct 1 --Dec.31 20 hours D. Mid-Management—Staff who are designated as exempt in accordance with the Fair Labor Standards Act shall receive, effective January 1 of each calendar year,60 hours of Administrative leave E. The 60 hours may not be carried over into the succeeding calendar year and is lost and not eligible for cash payout if not used by December 31 of each calendar year. F. Mid-Management FLSA exempt staff hired, promoted, or reclassified on or after April 1 of each calendar year shall be eligible to receive pro-rated administrative leave hours during the year of hire as identified below: Hired, Promoted,or Reclassified on or Administrative Leave Between January 1 -March 31 60 hours April 1 —June 30 45 hours Jul 1 —Sept.30 30 hours Oct 1 —Dec.31 15 hours G. All Administrative leave requests should be approved by the department head or City Administrator at least ten days in advance of the date to be taken, although 6 the department head retains discretion to approve the use of Administrative Leave in special circumstances. H. The City Administrator or his/her designee may grant additional administrative leave upon commencement of employment in order to attract highly qualified and experienced executive and management level staff, 7 Section 3. OVERTIME A. It shall be the duty of all department heads to operate their respective departments with a minimum amount of overtime. If the best interests of the City require that an employee work beyond the forty (40) hours of work scheduled, such employee shall be compensated as set forth hereinafter. B. The department head may reschedule the workweek of employees in positions not exempt from the FLSA to allow credit for productive hours actually worked on one day(excluding lunch periods) towards the regular paid workweek schedule. For example, if an employee works twelve(12)hours on one day(based on a ten (10) hour day), the entire twelve hours will be recorded on the time card as paid worked time. In this example, the department may schedule the employee to j work only eight (8) hours on one of the other scheduled workdays in the workweek, as long as the employee's hours for the workweek do not fall below the minimum paid work hours schedule. C. All overtime requests must have prior written authorization of the respective department head or designee prior to the commencement of such overtime work. Where prior written authorization is not feasible, explicit verbal authorization must be obtained. Where verbal authorization is obtained, written authorization must be obtained as soon thereafter as practicable. D. Except as may be provided in specific memoranda of understanding, employees will be paid overtime at time and a half (1.5) of their regular hourly rate for all eligible hours worked in excess of forty(40)hours in a single workweek. E. Holidays(regular, in-lieu), vacation time, sick leave, compensatory time, paid jury duty leave, and bereavement leave shall count as time worked for the purposes of computing overtime.. Unpaid jury leave, disciplinary suspensions, and administrative leave shall not count as time worked for the purpose of computing overtime. F. In the event a part-time or temporary employee is required to work beyond his/her assigned working hours, compensation shall be at the normal hourly rate up to forty (40) hours per workweek. For hours worked beyond forty (40) in a workweek, such employee shall be compensated at the rate of one and one-half of(1.5)said employee's hourly rate. G. If an employee works on his/her regular day off, the employee will receive paid compensation or receive compensatory time, at the employee's discretion.With a mutual agreement between an employee and his/her supervisor, an employee's regular day off may be rescheduled to another day off in the same pay period. I, An employee is expected to begin work no more than five(5)minutes prior to the beginning of his or her scheduled start time, and to stop work no later than five 8 (5) minutes after the end of his or her scheduled ending time. An employee who wishes to begin or end work at a different time must obtain written approval from his or her department head prior to working the different or additional time. I Straight time and overtime will be compensated in six (6) minute segments of time. K. While overtime should be attempted to be distributed equally amongst all employees in a given classification, the department head retains discretion to assign such overtime. L. The City Administrator, department heads and those management employees designated by the City Administrator as exempt under the provisions of the Fair Labor Standards Act(FLSA) shall not be subject to the provisions of this section relating to overtime, but shall work such hours as may be necessary for the effective operation of their respective departments. M. Please refer to Human Resources Policy,Salary Plan Administration II-3 9 Section 4. COMPENSATORY TIME A. All regular full-time employees may request to accrue compensatory time in lieu of cash payment for overtime worked. The total compensatory time accrued is calculated by multiplying the number of hours of overtime worked by the applicable overtime rate (1, 1.5 or 2), and is subject to the approval of the department head. B. Compensatory time may be accumulated up to a maximum of sixty(60) hours. It is at the employee's option whether to receive overtime compensation or compensatory time accruals up to the 60-hour limit. C. Compensatory time shall be taken in 15-minute increments. Scheduling of compensatory time requires prior approval and must be preceded by a ten (10) day notice of intended use from the employee. Management may waive the ten (10)day notice in cases of emergency. D. Employees who have reached the 60-hour limit shall receive overtime compensation. There are no cash payouts of compensatory time once an employee has elected compensatory accrual. 10 Section 5. COURT TIME A. The required presence in a court of law of any employee subpoenaed to testify in a matter arising within the course and scope of his/her City employment shall be compensated in accordance with the below provisions. B. For each day that the presence of the employee is required in a court of law in response to an order or subpoena in relation to an incident or event arising out of the course and scope of employment with the City,the employee shall be given a paid leave of absence. C. For each day an employee is required in a court of law in response to an order or subpoena in relation to an incident or event arising out of the course and scope of employment with the City that is outside of the employee's regularly scheduled work shift,the employee shall be given a paid leave of absence. D. An employee who needs to appear in court on any other matter not arising out of the course and scope of employment with the City shall be expected to use their accrued paid leave to make such appearance, or unpaid leave if no leave is available. tl Section 6.VACATION A. Except as provided for in respective memoranda of understanding, every full time employee who has been in the continuous employment of the City shall receive annual vacation leave as set forth in below: Mid-Management and Confidential Staff:. Continuous Years of Service Vacation Hours Earned Bi-Weekly Accrual 1 st year thru 4th year 80 3.08 5th year thru 9th year 100 3.85 10th year thru 14th year 120 4.62 151h year thru 241h year 160 6.16 251h year and more 190 7,31 Executive and Management Staff: Include the City Administrator, City Attorney, City Clerk, City Treasurer and the heads of all Departments as listed in the City Code or City Charter and their respective Deputies and Assistant Directors. Continuous Years of Service Vacation Hours Earned Bi-Weekly Accrual 1st year thru 4th year 120 4.62 5th year thru 101h year 150 5.77 10th year thru 15th year 170 6.54 15th year thru 25th year 185 7.12 25th year and more 190 7.31 B. Mid-Management and Confidential staff shall be allowed to accumulate and carry over to the next calendar year a maximum number of hours equal to the number of hours the employee accrued during the immediately preceding year. In or about January of each year, employees shall be compensated for unused accrued vacation benefit in excess of the allowed accumulated amount referenced herein. C. Executive and Management staff shall be allowed to accumulate up to a maximum accrual cap of 480 hours. Upon reaching the 480-hour maximum accrual cap, the employee shall stop accruing vacation leave benefit until such time he/she brings the vacation accrual below the 480-hour maximum accrual. D. Vacation leave shall be scheduled with the approval of the City Administrator or department head or his or her designee by submitting a Leave Request Form in 12 writing, within ten (10) business days before the beginning of the vacation. Vacation leave requests for extended times (3 weeks or more), unless an unforeseen emergency exists, shall be submitted at least thirty (30) days in advance of the beginning of the vacation. E. Vacations shall be approved subject to the needs of the department. The employee's seniority and wishes will be factors that are considered during the scheduling process. F. Vacation leave requests shall not be in excess of such leave actually earned at the time it is requested or in excess of the regular scheduled workweek. G. No vacation leave shall be accumulated by employees while they are on an unpaid leave of absence. I H. Vacation may be taken prior to the completion of the employee's probationary period under special circumstances and with the approval of the department head. I. In the event one or more City holidays fall within a vacation period, such holidays shall not be charged as vacation leave. J. Upon separation from City employment, compensation shall be paid for vacation leave that has been earned but not taken. K. Vacation leave shall be requested in fifteen(15)minute increments. L. The department head retains discretion to cancel previously authorized vacation in the case of an emergency, M. The City Administrator or his /her designee may grant additional leave upon commencement of employment in order to attract highly qualified and experienced executive and management level staff. 13 Section 7. SICK LEAVE A. All full-time employees shall accrue up to-80 hours of sick leave per calendar year, at a rate of 3.08 of sick leave hours per pay period. • ---- Formatted;Indent:Left: 0.5", No bullets or numbering A.B. In accordance with the Healthy Workplaces Healthv Families Act of 2014 beginning July 1 2015 all part-time and temporary employees working for 30 or more days within a year shall be entitled to accrue paid sick days at the rate of one(1)hour per every 30 hours worked. B C. Employees shall only receive sick leave accrual while they are in a paid status. >o D.The City shall allow annual carry-over of sick leave hours for full-time employees up to a maximum accrual cap of 960 hours and.4.8 hours for eligible part-time/ Formatted:Font color;Red temporary employees. This bank of carry-over sick leave would provide a cushion for long-term illnesses and injuries. E. Any sick leave hours exceeding 960 hours (full-time)or 48_Hours(part-time will _-. Formatted:Font color:Red be compensated for at the end of the calendar year at 50% of the employee's hourly rate. ------ Formatted:List Paragraph,Left, No bullets or numbering F. Temporary employees are not eligible for cash-out of accrued sick leave hours Formatted:List Paragraph,Left, No bullets or numbering G. All employees who are rehired with a break in service of less than one year are entitled to have previously unpaid accrued and unused paid sick days reinstated •----- Formatted:List Paragraph,Left, No bullets or numbering ------ Formatted: No bullets or numbering &H.Sick leave shall be allowed on account of actual illness, for the diagnosis, care, or treatment of an existing health condition or preventative care for an employee or an employee's family member (including to care for a parent-in-law, grandparent, grandchild, or a sibling, in addition to child, parent, spouse or registered domestic partner). Sick leave shall also be allowed for an employee for certain purposes related to being a victim of domestic violence, sexual assault, or stalking. Preventive health care shall include medical and dental appointments (if such appointments cannot be arranged other than during working hours) and injury not arising out of and in the course of employment. Sick leave shall be used in increments of fifteen (15) minutes and shall not be taken in excess of time earned at the time it is taken. (_Foreseeable sick leave requires advance notification, while unforeseeable sick leave requires notice as soon as practicable. If sick leave on account of any of the above illnesses exceeds two (2) consecutive working days, the employee, prior to return to work, shall submit a statement of such disability illness or injury from the employee or family member's physician. The statement shall certify the physical condition of the employee/employee's family member that prevented the 14 employee from performing the duties of said employee's position during the period of absence. The department head or designee, in accordance with departmental procedure, shall approve all sick leaves. Notwithstanding the above,the City may require verification of sick leave use whenever it has reason to believe there is misuse, abuse or a pattern of abuse. G-.J_Abuse of sick leave, and excessive leave, may constitute grounds for disciplinary action. Abuse of sick leave includes, but is not limited to, not adhering to sick leave policies, using sick leave for purposes not enumerated in this policy, and falsifying or misstating facts when using sick leave.A pattern of sick leave usage on Mondays, Thursdays, and immediately before and after holidays and/or vacations may be evidence of sick leave abuse. A violation of this policy will result in corrective action including counseling and/or disciplinary action, and/or a mandatory referral to the City's Employee Assistance Program. This determination of abuse does not apply to an employee's use of sick leave under an approved family, medical, and/or pregnancy disability leave in accordance with state and federal laws. W-K. If in the opinion of the department head it appears that an employee may be establishing a pattern of abuse of sick leave or frequent or excessive absences, a statement establishing the need for sick leave from the employee's physician may be required as a condition of approved sick leave. 1-_Employees may use accrued compensatory or vacation leave for extended sick leave absence because of a prolonged and continuing illness and/or medical treatment after sick leave has been exhausted. J:M. Employees are required to use accumulated sick leave concurrently with absences on account of a work related injury arising out of and in the course of his/her employment. In cases where the injury suffered is covered by Workers Compensation Insurance, accumulated sick leave must be used concurrently to make up the difference between Workers Compensation Insurance allowance and full base pay. Please refer to Personnel Policy, Family and Medical leave Policy. FAN. If an employee resigns from the City with 20 years or more of continuous service, he/she will be compensated for all unused sick leave hours in his/her sick leave bank at the time of separation at 50% of his/her then current regular hourly rate of pay. O. If an employee retires from the City with 15 or more years of continuous service, but fewer than 20 years, he/she will be compensated for all unused sick leave hours in his/her sick leave bank at the time of separation at 50% of his/her then current regular hourly rate of pay. If an employee retires from the City with 20 or more years of continuous service, he/she will be compensated for all unused sick 15 leave hours in his/her sick leave bank at the time of separation at 100%of his/her then current regular hourly rate of pay. •--- -- Formatted:List Paragraph,Left, No bullets or numbering t=.P. If a temporary employees resigns or the temporary assignment has ended he/she shall not be eligible for compensation of unused sick leave hours in his/her sick leave bank at the time of separation. 16 I I Section 8. FAMILY SICK LEAVE(KIN CARE) In any calendar year, employees may use the employee's accrued and available sick leave entitlement, in an amount not more than the sick leave that would be accrued during six months at the employee's then current rate of entitlement,for qualifying family illness as follows: Sick leave for family illnesses will be allowed only for the sickness of the spouse of, or the children of, or mother or father of, the employee living within the same household, In the case of joint custody of a child, illness of the child occurring at the other custodial parent's house may also qualify.The department head shall approve all family sick leaves and a statement establishing the need for sick leave from a physician may be required as a condition of payment while on such leave. 17 Section 9: BEREAVEMENT LEAVE A. Permanent full-time employees, regardless of period of service, may in the event of death or if death appears imminent, of any "immediate family member' as defined below, including the equivalent relatives of a registered domestic partner, be allowed up to the equivalent of four (4) work days (total hours may vary depending on work schedule)of bereavement leave without loss of salary. Relative All Regular Employees Spouse 4 work days Child 4 work days Registered 4 work days Domestic Partner Step-Child 4 work days Parent 4 work days Ste Parent 4 work days Mother-in-law 4 work days Father-in-law 4 work days Grandchild 4 work days Step-Grandchild 4 work days Grandparent 4 work days Grandparent-in-law 4 work days Brother 4 work days Sister 4 work days Step-Sister 4 work days Step-Brother 4 work days Daughter-in-law 4 work days Son-in-law 4 work days Brother-in-law* 4 work days Sister-in-law* 4 work days Brother-in-law and sister-in-law are defined as the spouse of the employee's sibling or the sibling of the employee's spouse. B. Bereavement leave is paid over a maximum of seven (7)workdays and is paid in thirty-minute increments. The bereavement leave begins on the first regularly scheduled workday as requested by the employee. If the employee learns of the death while at work, he or she is entitled to leave work immediately; this partial day leave will not be counted towards the bereavement leave. C. Bereavement leave must be authorized by the Department head and must be utilized within fifteen (15) days of employee learning of the death, or of the date of foreseen imminent death of the immediate family member, unless special circumstances require that the leave begin at a later date. Such requests to the Department head shall be made within 15 days of the employee learning of the 18 I I I I death or of the date of foreseen imminent death and shall not be unreasonably denied. D. Representatives may be selected by the Department head to attend with pay the funeral of a co-worker in said department on behalf of the City if the funeral of the deceased co-worker occurs during working hours; provided the funeral is held within a reasonable distance of City limits. 19 Section 10: JURY DUTY A. All regular full-time employees summoned to serve on jury duty shall be provided "Jury Duty Pay" and there shall be no loss of compensation. An employee will be compensated up to two weeks at full pay for jury duty. The employee must provide notice of the expected jury duty to his or her supervisor as soon as possible, but in no case later than 14 calendar days before the expected start date of the jury duty. B. An employee on call for jury duty is expected to report to work.An employee who is called in for jury duty does not have to report to work before or after appearing in court. All employees shall obtain verification of the hours of jury duty performed using verification forms as may be supplied by the court. C. Except as herein provided, employees shall remit to the City any compensation received for those days while on jury duty and shall receive regular pay for the time served, Employees shall be reimbursed by the City for the mileage portion of the jury duty compensation.Jury duty performed on an employee's regular day off shall not be compensated by the City and the employee shall be entitled only to the jury's compensation for duty performed on such employee's regular day off. Employees assigned to jury duty on a City authorized holiday will be considered to have taken such a holiday and will receive regular holiday pay, but the employee shall be entitled to the jury compensation for duty performed on such holiday. 20 Section 11: AUTOMOBILE ALLOWANCE AND REIMBURSEMENT FOR EXPENSES A. Any employee who is required to use said employee's personal automobile in the course of employment with the City shall be reimbursed for each mile actually traveled on official business in accordance with the per mile reimbursement rate allowed by the Internal Revenue Service in effect at the time of such travel. B. Any employee who is required to travel in the performance of his or her duties or to attend an authorized meeting or conference which is of benefit to the City shall be reimbursed for reasonable expenses incurred for transportation, meals, lodging and incidentals.Automobile allowance and reimbursement for expenses shall be recommended by the department head or designee and approved by the City Administrator pursuant to the provisions of the City of Vernon Travel and Meeting Expense Reimbursement Administrative Policy. No allowance shall be made for transportation between the employee's home and the place where such person is normally employed by the City. C. Certain employees serving in specified classifications shall receive a monthly automobile allowance as set forth below and incorporated herein by reference; alternatively, specified employees may opt to receive use of a City- owned vehicle and fuel. Classification Amount City Administrator $600.00 or City Vehicle City Attorney $400.00 Finance Director $400.00 Fire Chief City Vehicle& Fuel Assistant Fire Chief City Vehicle &Fuel Fire Marshal City Vehicle &Fuel Administrative Fire Battalion City Vehicle&Fuel • ---- Formatted Table Chief Administrative Fire Captain City Vehicle &Fuel Fire Training Captain City Vehicle &Fuel Gas&Electric Director $400.00* Industrial Development $400.00 •----- Formatted Table Director 21 Utility Operations Manager City Vehicle &Fuel Police Chief City Vehicle &Fuel Health Director $400.00 Police Admin. Lieutenant City Vehicle &Fuel Police Canine Officer#1 City Vehicle &Fuel Police Canine Officer#2 City Vehicle &Fuel Police Captain City Vehicle &Fuel Police Lieutenant City Vehicle &Fuel Police Motor Officer#1 City Vehicle &Fuel Police Motor Officer#2 City Vehicle &Fuel Public Works,Water& $400.00 Development Services Directo D. Wherever an automobile allowance is made to any employee for the use of their personal automobile, such allowance shall not be payable whenever the employee is on vacation, leave of absence, or otherwise absent the entire calendar month, unless otherwise specified by the City Administrator. E. The City shall not be responsible for repairs or any additional costs for upkeep, fuel, lubrication, replacement in whole or in part, or other expenses in connection with any such vehicle beyond the respective amounts set forth above. *Fringe benefits for the Director of Gas and Electric classification have historically included and currently,inchtde use oja City-awned vehicle and juel, Accordingly,the current Director of Gas and Electric may continue to use a City-owned vehicle and fitel in-lieu of receiving the$400 monthly aulontobile allowance. Once the current City- owned vehicle is due for replacement or the current incumbent leaves the position, whichever occurs first, the Director of'Gas and Electric classiiticalion will receive the$400 monthly automobile allowance. 22 Section 12: HEALTH INSURANCE A. The City offers various medical plans to employees under a Section 125 Cafeteria plan(non-cash out).The City reserves the right to select, administer,or fund any fringe benefit program involving insurance that now exist or may exist in the future. The City will adhere to the cafeteria plan requirements in accordance with IRS Section 125 regulations. B. The City shall contribute for each full-time employee up to the maximum amounts as set forth below per pay period, toward the cost of his/her medical plan as outlined in Subsection A through C below. In the event an employee does not exhaust nor exceed his/her monthly medical allowance, the employee shall be allowed to apply any unused portion towards the purchase of dental, vision, supplemental or ancillary plans offered through the City and approved by the Director of Human Resources. a. For employees enrolled in either the HMO or PPO (non-HSA) medical plans, the City shall pay up to $1,050 per month of the cost of the plan for employees and their eligible dependents (spouse, registered domestic partners and qualified dependents)The cost of any plan selected by the employee that exceeds$1,050 shall be paid by the employee through a pre-tax payroll deduction. b. Effective January 1, 2015, employees enrolled in either the HMO or PPO (Non-HSA) medical plans, the City shall increase the amount, by $70,00 and pay up to $1120.00 toward the monthly medical allowance. c. For Employees enrolled in the PPO/HSA plan,the City shall pay up to $800 per month of the monthly cost of the plan for employees and their eligible dependents (spouse, registered domestic partners and qualified dependents). In addition, for each employee enrolled in a PPO/HSA plan, annually the City shall make lump sum contributions to a health savings account (HSA) as follows: $1,500 in January and $500 each in March, June, and September. The cost of any PPO/HSA plan selected by the employee that exceeds $800 shall be paid by the employee through a pre-tax payroll deduction. d. Effective January 1, 2015, employees enrolled in the PPO/HSA medical plan,the City shall increase the amount by$70 and pay up to $870 toward the monthly cost of the plan for employees and their eligible dependents. 23 I i C. City Council members are entitled to the same medical benefits offered to the management and confidential employees. The City shall not pay or reimburse any medical-related health, vision, or dental costs not covered by the City's insurance program or Medicare for City Council members or their eligible dependents or spouses. D. The City shall not provide or reimburse the City Council members or their dependents or spouses for expenses incurred relating to a PERS long-term health care benefit, 24 Section 13: DENTAL INSURANCE The City of Vernon provides a dental insurance plan to full-time employees. In the event an employee does not exceed his/her monthly employer medical allowance, the employee shall be allowed to apply any unused portion toward the purchase of dental insurance for himself/herseif and eligible dependents (spouse, registered domestic partners and qualified dependents), The cost of any plan selected by the employee that exceeds his/her monthly employer medical allowance shall be paid by the employee through a pre-tax payroll deduction. I 25 I i Section 14: VISION INSURANCE The City of Vernon provides a vision care plan to full-time employees.The City shall pay 100%of the cost of such a plan for employees only. Employees shall have the option of purchasing vision care for their dependents at a cost of $6.95 for one dependent or $13.95 for two or more dependents. In the event an employee does not exceed his/her monthly employer medical allowance. the employee shall be allowed to apply any unused portion towards the purchase of additional provided coverage for vision care. I I I I I I 26 I_ Section 15: LIFE INSURANCE The City provides a $20,000 life insurance plan to full-time employees, The City shall pay 100% of the cost of such plan for employees. The City's agreement to pay full or partial costs of said premiums shall not create or ripen into a vested right for said employee. In the event an employee does not exceed his/her monthly employer medical allowance, the employee shall be allowed to apply any unused portion towards the purchase of additional provided coverage for supplemental life insurance. 27 i Section 16: DEFERRED COMPENSATION PLAN Employees are eligible to participate in the City's Deferred Compensation Program. I I I 28 Section 17: CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM(CALPERS) CONTRIBUTION MISCELLANEOUS EMPLOYEES A. The City shall maintain its contract with the California Employees Public Retirement System (PERS)that provides full-time employees hired before January 1, 2013 with 2.7%at 55 PERS retirement benefit plan. As a result of the recent passage of AB 340, Public Employee Pension Reform Act (PEPRA), new CalPERS members hired on or after January 1, 2013 who meet the definition of new member under PEPRA, shall be provided a 2.0% at 62 PERS retirement benefit plan. B. Employees shall be responsible for paying 100% of their PERS employee's contributions. C. The City provides additional supplemental retirement benefits to full-time employees under CalPERS as follows: a. Gov't Code Section:20042—(Classic Members Only)One Year Final Compensation New employees hired on or after January 1, 2013 who meet the definition of new member under PEPRA shall receive 3 Year Average Final Compensation b. Gov't Code Section: 21024-Military Service Credit as Public Service C. Gov't Code Section:21624, 21626,21628—Post Retirement Survivor Allowance d, Gov't Code Section:21548—Pre-Retirement Option 2W Death Benefit d. Gov't Code Section: 21573 — Third Level of 1959 Survivor Benefits D. The payment to CalPERS made by the City on behalf of the affected employee shall not be considered as base salary but shall be considered an employer contribution pursuant to Section 414(h)(2)of the Internal Revenue Code. 29 SAFETY EMPLOYEES A. The City shall maintain its contract with the California Employees Public Retirement System (PERS) that provides full-time safety employees hired before January 1, 2013 with 3.0%at 50 PERS retirement benefit plan. As a result of the recent passage of AB 340, Public Employee Pension Reform Act (PEPRA), new CalPERS safety members hired on or after January 1,2013 who meet the definition of new member under PEPRA, shall be provided a 2.7% at 57 PERS retirement benefit plan. B. Employees shall be responsible for paying their PERS nine percent(9%)employee's contributions. C. The City provides additional supplemental retirement benefits to full-time employees under CalPERS as follows: a. Gov't Code Section:20042 (Classic Members Only)One Year Final Compensation New employees hired on or after January 1, 2013 who meet the definition of new member under PEPRA shall receive 3 Year Average Final Compensation b. Gov't Code Section:20124-Military Service Credit as Public Service C. Gov't Code 21574—4'h Level 1959 Survivor Benefit(Fire members only) d. Gov't Code Section: 21571 —Basic Level of 1959 Survivor Benefit(Police members only) e. Gov't Code Section:21624, 21626,21628—Post Retirement Survivor Allowance f. Gov't Code Section: 21548-Pre-Retirement Option 2W Death Benefit (Fire members only) g. Gov't Code Section 20965—Credit for Unused Sick Leave D. The payment to CalPERS made by the City on behalf of the affected employee shall not be considered as base salary but shall be considered an employer contribution pursuant to Section 414(h)(2)of the Internal Revenue Code. 30 Section 18: RETIREE MEDICAL-NON-SAFETY EMPLOYEES A. The City will pay up to the amount equivalent to the then current, lowest cost, employee only HMO insurance premium for the City's medical and/or dental insurance premium(s) for all full-time employees designated as Executive, Management, Mid-Management and Confidential who retire at age 60 or later with at least twenty(20)years of continuous uninterrupted service. B. Retired employees will be permitted to enroll in a higher-cost plan and pay the amount in excess of the HMO equivalent. C. All full-time regular employees with at least thirty (30) years of continuous uninterrupted service who retire before the age of sixty (60) years will be permitted to pay their medical and/or dental insurance premiums, and, upon reaching the age of sixty (60), the City will pay up to the amount equivalent to the then current lowest cost, employee only HMO medical and/or dental insurance premium(s). D. All full-time regular employees, who retire with a minimum of ten (10) years of continuous uninterrupted service with the City, may pay the premium(s) for medical and/or dental insurance. E. All retiree medical and/or dental insurance benefits provided pursuant to subsections A, B, and C above, shall be for retired employees only and shall not include their spouses or other dependents. F. All retired employees who receive medical and/or dental insurance benefits pursuant to subsections A, B, or C above and who reach the age of sixty-five (65), are required to be enrolled in Medicare, and shall show proof of such enrollment, where upon the City's insurance policy will become supplemental coverage, if applicable. G. Should the retired employee fail to pay any premiums due for the cost of the insurance premium for the City's medical-dental insurance program for any three (3) consecutive months, or should the coverage otherwise lapse for any reason other than City's non-payment, then the City's obligation to make further payment under the retiree medical benefits program shall automatically terminate and cease, without the need for further notice. H. The City's obligation to make any payment under the retiree medical benefits program shall automatically terminate and cease upon the death of the retired employee. I. The offer of the retiree medical benefits is not a vested right for future years. J. City Council members are entitled to the same retiree medical benefits offered to all 31 I i I full-time regular employees as identified under the citywide resolution for retiree medical benefits in effect at the time Council members retire. i i I i I 32 i Section 19: LONGEVITY PROGRAM A. LONGEVITY PROGRAM FOR EMPLOYEES EMPLOYED ON OR BEFORE JUNE 30,1994. The City has established a longevity program for all employees. The longevity program described herein will apply to all employees, except Department Heads and employees covered in a collective bargaining agreement, employed on or before June 30, 1994. a. Five(5)Years of Service. All eligible employees who have five (5) years of consecutive uninterrupted service on or before July 1, 1986, shall receive an additional five percent (5%) per month of their base salary effective July 1, 1986, and every year thereafter until reaching the next step. Employees upon reaching their 5th anniversary date after July 1, 1986,shall be entitled to said five percent(5%)per month upon said anniversary date. b. Ten(10)Years of Service. All eligible employees who have ten (10) years of consecutive uninterrupted service on or before July 1, 1987, shall receive an additional ten percent (10%) per month of their base salary effective July 1, 1987, and every year thereafter until reaching the next step. Employees upon reaching their 10th anniversary date after July 1, 1987, shall be entitled to said ten percent (10%) per month upon said anniversary date. c. Fifteen(15)Years of Service. All eligible employees who have fifteen (15) years of consecutive uninterrupted service on or before July 1, 1988, shall receive an additional fifteen percent (15%) per month of their base salary effective July 1, 1988, and every year thereafter until reaching the next step. Employees upon reaching their 15th anniversary date after July 1, 1988, shall be entitled to said fifteen percent (15%) per month upon said anniversary date. d. Twenty(20)Years of Service. All eligible employees who have twenty (20) years of consecutive uninterrupted service on or before July 1, 1989, shall receive an additional twenty percent (20%) per month of their base salary effective July 1, 1989, and every year thereafter. Employees upon reaching their 20th anniversary date after July 1, 1989, shall be entitled to said twenty percent(20%)per month upon said anniversary date. e. Thirty(30)Years of Service—Fire-Sworn All eligible fire employees who have been appointed to a position ranking above Captain and who have thirty (30) years of consecutive uninterrupted service on or before July 1, 1991, shall receive an additional twenty-five percent (25%) of their base salary per month effective July 1, 1991, and every year thereafter. Employees in 33 I I said position upon reaching their 30th anniversary date after July 1, 1991, shall be entitled to said twenty-five percent(25%)per month upon said anniversary date. f. Compensation Not Cumulative. Payment of the aforesaid longevity compensation shall not be cumulative and only the highest applicable longevity pay shall be paid. B. LONGEVITY PROGRAM FOR EMPLOYEES ON OR AFTER JULY 1, 1994 AND ON OR BEFORE DECEMBER 31,2013. The longevity program described in Section B herein will apply to all employees, except Department Heads and employees covered in a collective bargaining agreement, employed on or after July 1, 1994. a. Five(5)Years of Service. All eligible employees who are employed on or after July 1, 1994 and on or before December 31, 2013, who attain five (5)years of consecutive uninterrupted service shall receive an additional five percent (5%)per month of their base salary. Such employees upon reaching their 5th anniversary date shall be entitled to receive said five percent (5%) per month upon said anniversary date. Further, such employees will not be entitled to receive any additional percentage increase to their base salary for further service. This subsection shall only apply to employees hired on or after July 1, 1994 and on or before December 31,2013. I 34 Section 20: BILINGUAL PAY A program is hereby established for all employees whose regular and essential job duties as described in their job description provide for interaction with the public on a regular basis, allowing said employee to be compensated for bilingual skills after the employee demonstrates proficiency in speaking Spanish (the ability to read and write in Spanish may also be tested, if necessary), which proficiency would be determined by successful completion of a proficiency test administered by the Human Resources Department. Those employees who successfully demonstrate this skill would be eligible to receive an additional One Hundred Twenty-Five Dollars ($125.00) per month for bilingual pay. 35 Section 21: UNIFORM ALLOWANCE A. If an employee's job classification requires him/her to wear a uniform while on duty,as designated by the City or employee's Department,the City will provide and launder such uniform, B. For the Administrative Secretary and Police Records Manager that works in the Police Department, the City will provide the initial set of uniforms to the employees. The newly hired employee will receive: two(2)class A uniforms; two (2) class B uniforms; two (2) polo shirts and one (1) jacket or sweater. On all subsequent anniversary dates the City will provide an annual uniform purchase and maintenance allowance of$600.00.The employee's uniforms shall meet the applicable regulations for his/her job classification pursuant to City/Departmental policies. C. The monetary value of uniforms shall be reported to CalPERS in accordance with CCR 571(a)and as defined by GC 7522.04(f) 36 Section 22: STAND-BY POLICY The purpose of the Stand-by Policy is to have employees on stand-by to respond to major incidents and emergencies during non-working hours which require immediate attention to availability of qualified individuals with expertise in operating, maintaining, restoring and repairing the City's technology systems. A. It is presently anticipated that the need for stand-by is for one(1)Information Technology staff,with the understanding that actual stand-by staffing, if any, remains at the discretion of the department head. B. The Stand-by Policy does not apply to FLSA exempt managers and Executive staff. C. Stand-by duty requires that an employee be accessible, available, and physically able to report to work. The employee must possess a City issued mobile phone device that remains available for immediate contact. The employee must be ready, willing, and able to respond to an emergency or incident or request for assistance based on a pre-arranged schedule. Employees on stand-by must respond to the mobile phone call immediately and be able to respond to the City within one (1) hour of being called upon. The department head or designee will determine if an employee is qualified to perform stand-by duties. The stand by duty period shall be defined by the Department Head. D. Employees on "stand—by" shall receive two (2) hours of regular straight time compensation for each date that the employee is assigned to be on stand-by. Stand-by time is not counted as hours worked for purposes of overtime calculation as employees are not restricted in their activities and may engage in non-work related personal activities. On City-recognized Holidays where City Hall is closed, employees on stand-by will be compensated four (4) hours of straight time compensation. E. An employee assigned to stand-by who is not available to report will be subject to appropriate disciplinary action, unless the employee provides sufficient notice to their immediate supervisor of their incapacity to respond prior to the call back so that appropriate arrangements can be made for stand-by coverage. F. When an employee on "stand-by" is called back to the City, he/she shall be entitled to "stand-by" pay. Call back duty does not occur when an employee is held over from his/her prior shift, or is working planned overtime. An employee called back to duty shall be paid a minimum of four (4) hours of pay at the applicable overtime rate.Time begins when the call back request is received and ends when the employee returns home. If work is performed remotely, the employee shall receive hour for hour compensation at the applicable overtime rate. 37 G. The employee will at times remain able to immediately respond to any emergencies. H. Each employee on stand-by duty is accountable to all of the rules and regulations of the City. I. In the event of a call back,the employee will wear his/her City uniform, if applicable. i i I I 38 I I I i I PART II CLASSIFICATION AND COMPENSATION PLAN 39 I Section 1.PURPOSE Exhibit A to this resolution is enacted pursuant to the City of Vernon City Charter to provide for the classification and compensation of City officers and employees, and to conform to the principle of equal pay for equal work. Officers and employees of the City of Vernon shall receive compensation and costs in accordance with the amounts set forth in the attached compensation plan. Section 2.THE COMPENSATION PLAN The basic compensation plan for the various employee units, groups and non- classified employees, as of the date of adoption of this plan is hereby established as set forth in Exhibit A, Citywide Classification and Compensation Plan, which is attached hereto and incorporated herein by reference. The City Administrator shall have authority to create and maintain salary steps to implement the provisions of this Section. Salaries granted pursuant to this provision shall be reported to PERS as compensation earned. Please refer to Human Resources Policy II-3,Salary Plan for specific policy and procedures. Section 3.THE CLASSIFICATION PLAN The classification plan includes the allocation of class titles to salary ranges for City officers and employees.The Classification Plan further includes the allocation of class titles to salary ranges for those employees that are designated as exempt from the classified service. These exempt classes are for elective officers; persons appointed by the City Council, including the City Administrator, and City Attorney; persons appointed by the City Administrator, including department head or designees; and persons appointed by the City Attorney pursuant to City of Vernon Municipal Code that serve in an "at will' capacity subject to the terms and conditions of an employment contract and are so designated in the plan as "non-classified," The classification plan as of the date of adoption of this plan is hereby established as set forth in Exhibit"A" which is attached hereto and incorporated herein by reference.The Human Resources Director, with approval by the City Administrator or his/her designee, is responsible for maintenance of the Classification Plan, including the allocation of new or changed positions to the appropriate class, the recommendation of proper salary ranges within the provision of pay administration, maintenance of up- to-date class specifications, and the preparation of reports and recommendations on revisions to the Classification Plan, Please refer to Human Resources Policy II-1, Classification Plan Administration for specific policy and procedures. 40 EXHIBIT A CLASSIFICATION AND COMPENSATION PLAN 41 I City of Vernon 1 of 21 Classification and Compensation Plan Effective June 28, 2015 Class PAY Occupational JobFamiliesand J Classes . . FLSA . . . .. F.5%COLA-Effective June 28,2015,various additions and revisions of classifications t i 1025 Council Member E 001 $25,752 $2,146 n/a $990.46 1030 Mayor E 001 $25,752 $2,146 n/a $990.46 CITY ADMINISTRATION • • 1010 City Administrator E E50 Min $241,404 $20,117 $116.0596 $9,284.77 Max $293,436 $24,453 $141.0750 $11,286.00 1015 Deputy City Administrator E M40 Step 1 $148,212 $12,351 $71.2558 $5,700.46 Step 2 $155,616 $12,968 $74.8154 $5,985.23 Step 3 $163,392 $13,616 $78.5538 $6,284.31 Step 4 $171,564 $14,297 $82.4827 $6,598.62 Step 5 $180,156 $15,013 $86.6135 $6,929.08 TechnologyF Information 1625 Information Technology Analyst NE C26 Step 1 $74,856 $6,238 $35.9885 $2,879.08 Step 2 $78,600 $6,550 $37.7885 $3,023.08 Step 3 $82,524 $6,877 $39.6750 $3,174.00 Step 4 $86,652 $7,221 $41.6596 $3,332.77 Step 5 $90,984 $7,582 $43.7423 $3,499.38 1620 Information Technology Analyst, Senior NE C29 Step 1 $86,652 $7,221 $41.6596 $3,332.77 Step 2 $90,984 $7,582 $43.7423 $3,499.38 Step 3 $95,544 $7,962 $45.9346 $3,674.77 Step 4 $100,320 $8,360 $48.2308 $3,858.46 Step 5 $105,336 $8,778 $50.6423 $4,051.38 1610 Information Technology Manager E M37 Step 1 $128,028 $10,669 $61.5519 $4,924.15 Step 2 $134,436 $11,203 $64.6327 $5,170.62 Step 3 $141,144 $11,762 $67.8577 $5,428.62 Step 4 $148,212 $12,351 $71.2558 $5,700.46 Step 5 $155,616 $12,968 $74.8154 $5,985.23 1630 Information Technology Technician NE C21 Step 1 $58,644 $4,887 $28.1942 $2,255.54 Step 2 $61,584 $5,132 $29.6077 $2,368.62 Step 3 $64,656 $5,388 $31.0846 $2,486.77 Step 4 $67,896 $5,658 $32.6423 $2,611.38 Step 5 $71,280 $5,940 $34.2692 $2,741.54 1615 Programmer/Analyst E C30 City of Vernon 2 of 21 Classification and Compensation Plan Effective June 28, 2015 New Class PAY • .. Families and Job Classes FLSA.. .. '1.5%COLA-Effective June 28,2015,various additions and revisions of classifications Step 1 $90,984 $7,582 $43.7423 $3,499.38 Step 2 $95,544 $7,962 $45.9346 $3,674.77 Step 3 $100,320 $8,360 $48.2308 $3,858.46 Step 4 $105,336 $8,778 $50.6423 $4,051.38 Step 5 $110,592 $9,216 $53.1692 $4,253.54 ICITY ATTORNEY GROUP 1110 City Attomey E E47 Min $208,536 $17,378 $100.2577 $8,020.62 Max $255,780 $21,315 $122.9712 $9,837.69 1115 Deputy City Attorney E M38 Step 1 $134,436 $11,203 $64.6327 $5,170.62 Step 2 $141,144 $11,762 $67.8577 $5,428.62 Step 3 $148,212 $12,351 $71.2558 $5,700.46 Step 4 $155,616 $12,968 $74.8154 $5,985.23 Step 5 $163,392 $13,616 $78.5538 $6,284.31 1525 Legal Secretary NE C21 Step 1 $58,644 $4,887 $28.1942 $2,255.54 Step 2 $61,584 $5,132 $29.6077 $2,368.62 Step 3 $64,656 $5,388 $31.0846 $2,486.77 Step 4 $67,896 $5,658 $32.6423 $2,611.38 Step 5 $71,280 $5,940 $34.2692 $2,741.54 OFFICEiCITY CLERK'S 1310 City Clerk E E38 Min $134,436 $11,203 $64.6327 $5,170.62 Max $163,392 $13,616 $78.5538 $6,284.31 1315 Deputy City Clerk NE C25 Step 1 $71,280 $5,940 $34.2692 $2,741.54 Step 2 $74,856 $6,238 $35.9885 $2,879.08 Step 3 $78,600 $6,550 $37.7885 $3,023.08 Step 4 $82,524 $6,877 $39,6750 $3,174.00 Step 5 $86,652 $7,221 $41.6596 $3,332.77 1320 Records Management Assistant NE C20 Step 1 $55,860 $4,655 $26.8558 $2,148.46 Step 2 $58,644 $4,887 $28.1942 $2,255.54 Step 3 $61,584 $5,132 $29.6077 $2,368.62 Step 4 $64,656 $5,388 $31.0846 $2,486.77 Step 5 $67,896 $5,658 $32.6423 $2,611.38 Y1 $69,840 $5,820 $33.5769 $2,686.15 i ADMINISTRATIVE AND CLERICAL GROUP City of Vernon 3 of 21 Classification and Compensation Plan Effective June 28, 2015 Occupational-Job . . . . RADE Annual Monthly, H urly 'Pay,Period, FCOLA-Effective June 28,2015, various additions and revisions of classifications 1505 Administrative Aide (part-time hourly) NE C5 Step 1 ------ $40.0000 ------ 1530 Administrative Assistant NE G13 Step 1 $39,696 $3,308 $19.0846 $1,526.77 Step 2 $41,688 $3,474 $20.0423 $1,603.38 Step 3 $43,764 $3,647 $21.0404 $1,683.23 Step 4 $45,960 $3,830 $22.0962 $1,767.69 Step 5 $48,252 $4,021 $23.1981 $1,855.85 1530 Administrative Assistant, (Confidential) NE C13 Step 1 $39,696 $3,308 $19.0846 $1,526.77 Step 2 $41,688 $3,474 $20.0423 $1,603.38 Step 3 $43,764 $3,647 $21.0404 $1,683.23 Step 4 $45,960 $3,830 $22.0962 $1,767.69 Step 5 $48,252 $4,021 $23.1981 $1,855.85 1520 Administrative Assistant, Senior NE G17 Step 1 $48,252 $4,021 $23.1981 $1,855.85 Step 2 $50,652 $4,221 $24.3519 $1,948.15 Step 3 $53,208 $4,434 $25.5808 $2,046.46 Step 4 $55,860 $4,655 $26.8558 $2,148.46 Step 5 $58,644 $4,887 $28.1942 $2,255.54 Y1 $59,484 $4,957 $28.5981 $2,287.85 1520 Administrative Assistant, Senior(Confidential NE C17 Step 1 $48,252 $4,021 $23,1981 $1,855.85 Step 2 $50,652 $4,221 $24.3519 $1 948.15 Step 3 $53,208 $4,434 $25.5808 $2046,46 Step 4 $55,860 $4,655 $26.8558 $2 148.46 Step 5 $58,644 $4,887 $28,1942 $2,255.54 1510 Administrative Secretary NE C20 Step 1 $55,860 $4,655 $26.8558 $2,148.46 Step 2 $58,644 $4,887 $28.1942 $2,255.54 Step 3 $61,584 $5,132 $29.6077 $2,368.62 Step 4 $64,656 $5,388 $31.0846 $2,486.77 Step 5 $67,896 $5,658 $32.6423 $2,611.38 Grandfathered - G1 $66,216 $5,518 $31.8346 $2,546.77 Grandfathered - G2 $69,864 $5,822 $33.5885 $2,687.08 Grandfathered - G3 $73,704 $6,142 $35.4346 $2,834.77 1500 Executive Assistant to the City Administrator NE C24 Step 1 $67,896 $5,658 $32.6423 $2,611.38 Step 2 $71,280 $5,940 $34.2692 $2,741.54 Step 3 $74,856 $6,238 $35.9885 $2,879.08 Step 4 $78,600 $6,550 $37.7885 $3,023.08 Step 5 $82,524 $6,877 $39.6750 $3,174.00 City of Vernon 4 of 21 Classification and Compensation Plan Effective June 28, 2015 A� New • .. . . Classe•• i • . . . 1.5%COLA-Effective June 28, 2015,various additions and revisions of classifications i 1250 Account Clerk NE G14 Step 1 $41,688 $3,474 $20.0423 $1,603.38 Step 2 $43,764 $3,647 $21.0404 $1,683.23 Step 3 $45,960 $3,830 $22.0962 $1,767.69 Step 4 $48,252 $4,021 $23.1981 $1,855.85 Step 5 $50,652 $4,221 $24.3519 $1,948.15 1247 Account Clerk, Senior NE G18 Step 1 $50,652 $4,221 $24.3519 $1,948.15 Step 2 $53,208 $4,434 $25.5808 $2,046.46 Step 3 $55,860 $4,655 $26.8558 $2,148.46 Step 4 $58,644 $4,887 $28.1942 $2,255.54 Step 5 $61,584 $5,132 $29.6077 $2,368.62 1240 Accountant NE C22 Step 1 $61,584 $5,132 $29.6077 $2,368.62 j Step 2 $64,656 $5,388 $31.0846 $2,486.77 Step 3 $67,896 $5,658 $32.6423 $2,611.38 Step 4 $71,280 $5,940 $34.2692 $2,741.54 Step 5 $74,856 $6,238 $35.9885 $2,879.08 1230 Accountant, Senior NE C26 Step 1 $74,856 $6,238 $35.9885 $2,879.08 Step 2 $78,600 $6,550 $37.7885 $3,023.08 Step 3 $82,524 $6,877 $39.6750 $3,174.00 Step 4 $86,652 $7,221 $41.6596 $3,332.77 Step 5 $90,984 $7,582 $43.7423 $3,499.38 1220 Assistant Finance Director E M36 Step 1 $121,932 $10,161 $58.6212 $4,689.69 Step 2 $128,028 $10,669 $61.5519 $4,924.15 Step 3 $134,436 $11,203 $64.6327 $5,170.62 Step 4 $141,144 $11,762 $67.8577 $5,428.62 Step 5 $148,212 $12,351 $71.2558 $5,700.46 1248 Business License Clerk NE G16 Step 1 $45,960 $3,830 $22.0962 $1,767.69 Step 2 $48,252 $4,021 $23.1981 $1,855.85 Step 3 $50,652 $4,221 $24.3519 $1,948.15 Step 4 $53,208 $4,434 $25.5808 $2,046.46 Step 5 $55,860 $4,655 $26.8558 $2,148.46 1225 Deputy City Treasurer E M34 Step 1 $110,592 $9,216 $53.1692 $4,253.54 Step 2 $116,124 $9,677 $55.8288 $4,466.31 Step 3 $121,932 $10,161 $58.6212 $4,689.69 Step 4 $128,028 $10,669 $61.5519 $4,924.15 i City of Vernon 5 of 21 Classification and Compensation Plan Effective June 28, 2015 ew Class PAY Occupational . . . Job .. *1,5%COLA-Effective June 28, 2015, various additions and revisions of classifications Step 5 $134,436 $11,203 $64.6327 $5,170.62 1210 Director of Finance/City Treasurer E E41 Min $155,616 $12,968 $74.8154 $5,985.23 Max $189,156 $15,763 $90.9404 $7,275.23 Y1 $210,000 $17,500 $100.9615 $8,076.92 1245 Payroll Specialist NE C19 Step 1 $53,208 $4,434 $25.5808 $2,046.46 Step 2 $55,860 $4,655 $26.8558 $2,148.46 Step 3 $58,644 $4,887 $28.1942 $2,255.54 Step 4 $61,584 $5,132 $29.6077 $2,368.62 Step 5 $64,656 $5,388 $31.0846 $2,486.77 1248 Public Housing Property Coordinator NE C16 Step 1 $45,960 $3,830 $22.0962 $1,767.69 Step 2 $48,252 $4,021 $23.1981 $1,855.85 Step 3 $50,652 $4,221 $24.3519 $1,948.15 Step 4 $53,208 $4,434 $25.5808 $2,046.46 Step 5 $55,860 $4,655 $26.8558 $2,148.46 1235 Purchasing Assistant NE G20 Step 1 $55,860 $4,655 $26.8558 $2,148.46 Step 2 $58,644 $4,887 $28.1942 $2,255.54 Step 3 $61,584 $5,132 $29.6077 $2,368.62 Step 4 $64,656 $5,388 $31.0846 $2,486.77 Step 5 $67,896 $5,658 $32.6423 $2,611.38 GROUPFIRE I 5015 Assistant Fire Chief E FM41 Step 1 $155,616 $12,968 $74.8154 $5,985.23 Step 2 $163,392 $13,616 $78.5538 $6,284.31 Step 3 $171,564 $14,297 $82.4827 $6,598.62 , Step 4 $180,156 $15,013 $86.6135 $6,929.08 Step 5 $189,156 $15,763 $90.9404 $7,275.23 5033 Assistant Fire Marshall NE M29 Step 1 $86,652 $7,221 $29.7569 $3,332,77 Step 2 $90,984` $7,582 $31.2445 $3;499.38 Step 3 $95,544 $71962 $32.8104 $3674,77 Step 4 $100,320 $8,360 $34.4505 $3,868.46 Step 5' $106,336 $8,778 $36,1731 $4 051.38 i 5025 Fire Battalion Chief(P) NE FM38 Step 1 $134,436 $11,203 $46.1662 $5,170.62 Step 2 $141,144 $11,762 $48.4698 $5,428.62 Step 3 $148,212 $12,351 $50.8970 $5,700.46 Step 4 $155,616 $12,968 $53.4396 $5,985.23 City of Vernon 6 of 21 R Classification and Compensation Plan Effective June 28, 2015 Occupational JobFamilies . . Classes FLSA.. . .. *1 Y.COLA-Effective June 28,2015,various additions and revisions of classifications Step 5 $163,392 $13,616 $56.1099 $6,284.31 5025 Fire Battalion Chief (A) NE FA38 Step 1 $134,436 $11,203 $64.6327 $5,170,62 Step 2; $141,144 $11,762 $67,8577 $5,428.62 Step 3 $148,212 $12,351 $71.2558 $5,700.46 ` Step 4 $155,616 $12,968 $74,8154 $5,985.23 Step 5 $163,392 $13,616 $78.5538 $6,284,31 5030 Fire Captain (P) NE F31 Step 1 $95,544 $7,962 $32.8104 $3,674.77 Step 2 $100,320 $8,360 $34.4505 $3,858.46 Step 3 $105,336 $8,778 $36.1731 $4,051.38 Step 4 $110,592 $9,216 $37.9780 $4,253.54 Step 5 $116,124 $9,677 $39.8777 $4,466.31 5030 Fire Captain (A) NE FA31 Step 1 $95,544 $7,962 $45.9346 $3,674.77 Step 2 $100,320 $8,360 $48,2308 $3,858.46 Step 3 $105,336 $8,778 $50.6423 $4,051.38 Step 4 $110,592 $9,216 $53.1692 $4,253,54 Step 5 $116,124 $9,677 $55,8288 $4,466.31 5010 Fire Chief E E45 Min $189,156 $15,763 $90.9404 $7,275.23 Max $229,908 $19,159 $110.5327 $8,842.62 5050 Fire Code Inspector NE G25 Step 1 $71,280 $5,940 $34.2692 $2,741.54 Step 2 $74,856 $6,238 $35.9885 $2,879.08 Step 3 $78,600 $6,550 $37.7885 $3,023.08 Step 4 $82,524 $6,877 $39.6750 $3,174.00 Step 5 $86,652 $7,221 $41.6596 $3,332.77 5040 Fire Engineer(P) NE F28 Step 1 $82,524 $6,877 $28.3393 $3,174.00 Step 2 $86,652 $7,221 $29.7569 $3,332.77 Step 3 $90,984 $7,582 $31.2445 $3,499.38 Step 4 $95,544 $7,962 $32,8104 $3,674.77 Step 5 $100,320 $8,360 $34.4505 $3,858.46 5020 Fire Marshall NE FM33 Step 1 $105,336 $8,778 $50.6423 $4,051.38 Step 2 $110,592 $9,216 $53.1692 $4,253.54 Step 3 $116,124 $9,677 $55.8288 $4,466.31 Step 4 $121,932 $10,161 $58.6212 $4,689.69 Step 5 $128,028 $10,669 $61.5519 $4,924.15 City of Vernon 7 of 21 P. Classification and Compensation Plan Effective June 28, 2015 New- tClass PAY . . Families and Job Classes FLSA od GRADE Annual Montlily� Hourly Play ,. *1.5%COLA-Effective June 28, 2015,various additions and revisions of classifications 5060 Firefighter(P) NE F25 Step 1 $71,280 $5,940 $24.4780 $2,741.54 Step 2 $74,856 $6,238 $25.7060 $2,879.08 Step 3 $78,600 $6,550 $26.9918 $3,023.08 Step 4 $82,524 $6,877 $28.3393 $3,174.00 Step 5 $86,652 $7,221 $29.7569 $3,332.77 5045 Firefighter/Paramedic (P) NE F28 Step 1 $82,524 $6,877 $28.3393 $3,174.00 Step 2 $86,652 $7,221 $29.7569 $3,332.77 Step 3 $90,984 $7,582 $31.2445 $3,499.38 Step 4 $95,544 $7,962 $32.8104 $3,674.77 Step 5 $100,320 $8,360 $34.4505 $3,858.46 5035 Firefighter/Paramedic Coordinator(P) NE F29 Step 1 $86,652 $7,221 $29.7569 $3,332.77 Step 2 $90,984 $7,582 $31.2445 $3,499.38 Step 3 $95,544 $7,962 $32.8104 $3,674.77 Step 4 $100,320 $8,360 $34.4505 $3,858.46 Step 5 $105,336 $8,778 $36.1731 $4,051.38 GA S & ELECTRIC DEPARTMENT 8010 Director of Gas and Electric E E48 Min $218,976 $18,248 $105.2769 $8,422.15 Max $266,160 $22,180 $127.9615 $10,236.92 Business . AccountsGroup 8710 Business and Account Supervisor E M31 Step 1 $95,544 $7,962 $45.9346 $3,674.77 Step 2 $100,320 $8,360 $48.2308 $3,858.46 Step 3 $105,336 $8,778 $50.6423 $4,051.38 Step 4 $110,592 $9,216 $53.1692 $4,253.54 Step 5 $116,124 $9,677 $55.8288 $4,466.31 Compliance Group 8615 Utilities Compliance Analyst NE G27 Step 1 $78,600 $6,550 $37.7885 $3,023.08 Step 2 $82,524 $6,877 $39.6750 $3,174.00 Step 3 $86,652 $7,221 $41.6596 $3,332.77 Step 4 $90,984 $7,582 $43.7423 $3,499.38 Step 5 $95,544 $7,962 $45.9346 $3,674.77 8610 Utilities Compliance Manager E M35 Step 1 $116,124 $9,677 $55.8288 $4,466.31 Step 2 $121,932 $10,161 $58.6212 $4,689.69 Step 3 $128,028 $10,669 $61.5519 $4,924.15 Step 4 $134,436 $11,203 $64.6327 $5,170.62 Step 5 $141,144 $11,762 $67.8577 $5,428.62 City of Vernon 8 of 21 Classification and Compensation Plan Effective June 28, 2015 Class PAY OccupationalJob Families and Job �Code GRADE Annuat Monthly Hourly .. 1.5%COLA-Effective June 28,2015, various additions and revisions of classifications s • . 8530 Utilities Customer Service Representative NE G17 Step 1 $48,252 $4,021 $23.1981 $1,855.85 Step 2 $50,652 $4,221 $24.3519 $1,948.15 Step 3 $53,208 $4,434 $25.5808 $2,046.46 Step 4 $55,860 $4,655 $26.8558 $2,148.46 Step 5 $58,644 $4,887 $28.1942 $2,255.54 8510 Utilities Customer Service Supervisor NE M26 Step 1 $74,856 $6,238 $35.9885 $2,879,08 Step 2 $78,600 $6,550 $37,7885 $3,023.08 Step 3 $82,524 $6,877 $39,6750 $3,174.00 Step 4 $86,652 $7,221 $41.6596 $3,332.77 Step 5 $90,984 $7,582 $43,7423 $3,499.38 OperationsElgctric 8040 Electric Operations Supervisor E M35 Step 1 $116,124 $9,677 $55.8288 $4,466.31 Step 2 $121,932 $10,161 $58.6212 $4,689.69 Step 3 $128,028 $10,669 $61.5519 $4,924.15 Step 4 $134,436 $11,203 $64.6327 $5,170.62 Step 5 $141,144 $11,762 $67.8577 $5,428.62 8035 Electric Operator NE 130 Step 1 $90,984 $7,582 $43.7423 $3,499.38 Step 2 $95,544 $7,962 $45.9346 $3,674.77 Step 3 $100,320 $8,360 $48.2308 $3,858.46 Step 4 $105,336 $8,778 $50.6423 $4,051.38 Step 5 $110,592 $9,216 $53.1692 $4,253.54 8050 Metering Technician NE 129 Step 1 $86,652 $7,221 $41.6596 $3,332.77 Step 2 $90,984 $7,582 $43.7423 $3,499.38 Step 3 $95,544 $7,962 $45.9346 $3,674.77 Step 4 $100,320 $8,360 $48.2308 $3,858.46 Step 5 $105,336 $8,778 $50.6423 $4,051.38 8045 Power Plant Operator NE 128 Step 1 $82,524 $6,877 $39.6750 $3,174.00 Step 2 $86,652 $7,221 $41.6596 $3,332.77 Step 3 $90,984 $7,582 $43.7423 $3,499.38 Step 4 $95,544 $7,962 $45.9346 $3,674.77 Step 5 $100,320 $8,360 $48.2308 $3,858.46 8055 Substation Technician NE 129 Step 1 $86,652 $7,221 $41.6596 $3,332.77 Step 2 $90,984 $7,582 $43.7423 $3,499.38 Step 3 $95,544 $7,962 $45.9346 $3,674.77 i i 1 1 City of Vernon 9 of 21 Classification and Compensation Plan Effective June 28, 2015 Ne Class PAY Occupational .. Families,and Job Classes FLSA Code RAIDE Annual Monthly Hourly Pay .. F COLA-Effective June 28, 2015, various additions and revisions of classifications Step 4 $100,320 $8,360 $48.2308 $3,858.46 Step 5 $105,336 $8,778 $50.6423 $4,051.38 8030 Utilities Dispatcher NE 133 I Step 1 $105,336 $8,778 $50.6423 $4,051.38 j Step 2 $110,592 $9,216 $53.1692 $4,253.54 Step 3 $116,124 $9,677 $55.8288 $4,466.31 Step 4 $121,932 $10,161 $58.6212 $4,689.69 Step 5 $128,028 $10,669 $61.5519 $4,924.15 8025 Utilities Dispatcher, Senior NE 134 Step 1 $110,592 $9,216 $53.1692 $4,253.54 Step 2 $116,124 $9,677 $55.8288 $4,466.31 Step 3 $121,932 $10,161 $58.6212 $4,689.69 Step 4 $128,028 $10,669 $61.5519 $4,924.15 Step 5 $134,436 $11,203 $64.6327 $5,170.62 8015 Utilities Operations Manager E M38 Step 1 $134,436 $11,203 $64.6327 $5,170.62 Step 2 $141,144 $11,762 $67.8577 $5,428.62 Step 3 $148,212 $12,351 $71.2558 $5,700.46 Step 4 $155,616 $12,968 $74.8154 $5,985.23 Step 5 $163,392 $13,616 $78.5538 $6,284.31 I Engineering8130 Associate Electrical Engineer NE 129 Step 1 $86,652 $7,221 $41.6596 $3,332.77 Step 2 $90,984 $7,582 $43.7423 $3,499.38 Step 3 $95,544 $7,962 $45.9346 $3,674.77 Step 4 $100,320 $8,360 $48.2308 $3,858.46 Step 5 $105,336 $8,778 $50.6423 $4,051.38 8140 Computer Aided Drafting Technician NE G20 Step 1 $55,860 $4,655 $26.8558 $2,148.46 Step 2 $58,644 $4,887 $28.1942 $2,255.54 Step 3 $61,584 $5,132 $29.6077 $2,368.62 j Step 4 $64,656 $5,388 $31.0846 $2,486.77 Step 5 $67,896 $5,658 $32.6423 $2,611.38 j Y1 $70,860 $5,905 $34.0673 $2,725.38 8125 Electrical Engineer NE 131 Step 1 $95,544 $7,962 $45.9346 $3,674.77 j Step 2 $100,320 $8,360 $48.2308 $3,858.46 Step 3 $105,336 $8,778 $50.6423 $4,051.38 Step 4 $110,592 $9,216 $53.1692 $4,253.54 j Step 5 $116,124 $9,677 $55.8288 $4,466.31 I i i City of Vernon 10 of 21 Classification and Compensation Plan Effective June 28, 2015 New- Class PAY, Occupational . . Families and Job Classes FLSA .. . .. *1.5%COLA-Effective June 28,2015, various additions and revisions of classifications 8115 Supervising Electrical Engineer NE M33 Step 1 $105,336 $8,778 $50.6423 $4,051.38 Step 2 $110,592 $9,216 $53.1692 $4,253.54 Step 3 $116,124 $9,677 $55.8288 $4,466.31 Step 4 $121,932 $10,161 $58.6212 $4,689.69 Step 5 $128,028 $10,669 $61.5519 $4,924.15 8110 Utilities Engineering Manager E M40 Step 1 $148,212 $12,351 $71.2558 $5,700.46 Step 2 $155,616 $12,968 $74.8154 $5,985.23 Step 3 $163,392 $13,616 $78.5538 $6,284.31 Step 4 $171,564 $14,297 $82,4827 $6,598.62 Step 5 $180,156 $15,013 $86.6135 $6,929.08 8215 Gas Systems Specialist NE 130 Step 1 $90,984 $7,582 $43.7423 $3,499.38 Step 2 $95,544 $7,962 $45.9346 $3,674.77 Step 3 $100,320 $8,360 $48.2308 $3,858.46 Step 4 $105,336 $8,778 $50.6423 $4,051.38 Step 5 $110,592 $9,216 $53.1692 $4,253.54 yc1 $111,300 $9,275 $53.5096 $4,280.77 8210 Gas Systems Superintendent E M34 j Step 1 $110,592 $9,216 $53.1692 $4,253.54 Step 2 $116,124 $9,677 $55.8288 $4,466.31 Step 3 $121,932 $10,161 $58.6212 $4,689.69 Step 4 $128,028 $10,669 $61.5519 $4,924.15 Step 5 $134,436 $11,203 $64.6327 $5,170.62 8220 Gas Systems Technician NE 126 Step 1 $74,856 $6,238 $35.9885 $2,879.08 Step 2 $78,600 $6,550 $37.7885 $3,023.08 Step 3 $82,524 $6,877 $39.6750 $3,174.00 Step 4 $86,652 $7,221 $41.6596 $3,332.77 Step 5 $90,984 $7,582 $43.7423 $3,499.38 Resource • • 8435 Assistant Resource Scheduler NE 128 Step 1 $82,524 $6,877 $39.6750 $3,174.00 Step 2 $86,652 $7,221 $41.6596 $3,332.77 Step 3 $90,984 $7,582 $43.7423 $3,499.38 Step 4 $95,544 $7,962 $45.9346 $3,674.77 Step 5 $100,320 $8,360 $48.2308 $3,858.46 8430 Associate Resource Scheduler NE 130 Step 1 $90,984 $7,582 $43.7423 $3,499.38 j Step 2 $95,544 $7,962 $45.9346 $3,674.77 G i I a City of Vernon 11 of 21 Classification and Compensation Plan Effective June 28, 2015 Class PAY Occupational Job Families and Job Classes :FLSA . . . .. 1.5%COLA-Effective June 28, 2015,various additions and revisions of classifications Step 3 $100,320 $8,360 $48.2308 $3,858.46 Step 4 $105,336 $8,778 $50.6423 $4,051.38 Step 5 $110,592 $9,216 $53,1692 $4,253.54 8410 Electric Resources Planning & Dev. Mngr E M41 Step 1 $155,616 $12,968 $74.8154 $5,985.23 Step 2 $163,392 $13,616 $78.5538 $6,284.31 Step 3 $171,564 $14,297 $82.4827 $6,598.62 Step 4 $180,156 $15,013 $86.6135 $6,929.08 Step 5 $189,156 $15,763 $90.9404 $7,275.23 8425 Electric Service Planner NE G26 Step 1 $74,856 $6,238 $35.9885 $2,879.08 Step 2 $78,600 $6,550 $37.7885 $3,023.08 Step 3 $82,524 $6,877 $39.6750 $3,174.00 Step 4 $86,652 $7,221 $41.6596 $3,332.77 Step 5 $90,984 $7,582 $43.7423 $3,499.38 8415 Resource Planner NE 135 Step 1 $116,124 $9,677 $55.8288 $4,466.31 Step 2 $121,932 $10,161 $58.6212 $4,689.69 Step 3 $128,028 $10,669 $61.5519 $4,924.15 Step 4 $134,436 $11,203 $64.6327 $5,170.62 Step 5 $141,144 $11,762 $67.8577 $5,428.62 8420 Resource Scheduler NE 132 Step 1 $100,320 $8,360 $48.2308 $3,858.46 Step 2 $105,336 $8,778 $50.6423 $4,051.38 Step 3 $110,592 $9,216 $53.1692 $4,253.54 Step 4 $116,124 $9,677 $55.8288 $4,466.31 Step 5 $121,932 $10,161 $58.6212 $4,689.69 Telecommunications Group 8315 Telecommunications Specialist NE 5320 Step 1 $82,404 $6,867 $39.6173 $3,169.38 Step 2 $78,108 $6,509 $37.5519 $3,004.15 Step 3 $74,040 $6,170 $35.5962 $2,847.69 Step 4 $70,176 $5,848 $33.7385 $2,699.08 Step 5 $66,528 $5,544 $31.9846 $2,558.77 Step 6 $63,060 $5,255 $30.3173 $2,425.38 Step 7 $59,772 $4,981 $28.7365 $2,298.92 Step 8 $56,652 $4,721 $27.2365 $2,178.92 8310 Telecommunications Systems Engineer NE 5330 j Step 1 $111,300 $9,275 $53.5096 $4,280.77 Step 2 $105,504 $8,792 $50.7231 $4,057.85 Step 3 $99,996 $8,333 $48.0750 $3,846.00 Step 4 $94,788 $7,899 $45.5712 $3,645.69 i City of Vernon 12 of 21 Classification and Compensation Plan Effective June 28, 2015 • . . . . FLSA PAY .. Period: 1.5%COLA-Effective June 28,2015, various additions and revisions of classifications Step 5 $89,844 $7,487 $43.1942 $3,455.54 Step 6 $85,152 $7,096 $40,9385 $3,275.08 Step 7 $80,712 $6,726 $38.8038 $3,104.31 Step 8 $76,512 $6,376 $36.7846 $2,942.77 2015 Deputy Dir. of Health & Environmental Contrc E M35 Step 1 $116,124 $9,677 $55.8288 $4,466.31 Step 2 $121,932 $10,161 $58.6212 $4,689.69 Step 3 $128,028 $10,669 $61.5519 $4,924.15 Step 4 $134,436 $11,203 $64.6327 $5,170.62 Step 5 $141,144 $11,762 $67.8577 $5,428.62 2010 Director of Health and Environmental Control E E43 Min $171,564 $14,297 $82.4827 $6,598.62 Max $208,536 $17,378 $100.2577 $8,020.62 2030 Environmental Specialist NE G24 Step 1 $67,896 $5,658 $32.6423 $2,611.38 Step 2 $71,280 $5,940 $34.2692 $2,741.54 Step 3 $74,856 $6,238 $35.9885 $2,879.08 Step 4 $78,600 $6,550 $37.7885 $3,023.08 Step 5 $82,524 $6,877 $39.6750 $3,174.00 2025 Environmental Specialist, Senior NE G28 Step 1 $82,524 $6,877 $39.6750 $3,174.00 Step 2 $86,652 $7,221 $41,6596 $3,332.77 Step 3 $90,984 $7,582 $43.7423 $3,499.38 Step 4 $95,544 $7,962 $45.9346 $3,674.77 Step 5 $100,320 $8,360 $48.2308 $3,858.46 Grandfathered-Hired before July 1, 2014 G1 $95,916 $7,993 $46.1135 $3,689.08 Grandfathered-Hired before July 1, 2014 G2 $101,196 $8,433 $48.6519 $3,892.15 Grandfathered-Hired before July 1, 2014 G3 $106,764 $8,897 $51.3288 $4,106.31 Grandfathered-Hired before July 1, 2014 G4 $112,632 $9,386 $54.1500 $4,332.00 GROUPHUMAN RESOURCES 1410 Director of Human Resources E E40 Min $148,212 $12,351 $71.2558 $5,700.46 Max $180,156 $15,013 $86.6135 $6,929.08 Y1 $196,000 $16,333.34 $94.2308 $7,538.46 1420 Human Resources Analyst NE C26 Step 1 $74,856 $6,238 $35.9885 $2,879.08 Step 2 $78,600 $6,550 $37.7885 $3,023.08 Step 3 $82,524 $6,877 $39.6750 $3,174.00 Step 4 $86,652 $7,221 $41.6596 $3,332.77 Step 5 $90,984 $7,582 $43.7423 $3,499.38 City of Vernon 13 of 21 Classification and Compensation Plan ' Effective June 28, 2015 • . . . . asses ��l .. • .. *1.5%COLA-Effective June 28,2015, various additions and revisions of classifications 1415 Human Resources Analyst, Senior E M32 Step 1 $100,320 $8,360 $48.2308 $3,858.46 Step 2 $105,336 $8,778 $50.6423 $4,051.38 Step 3 $110,592 $9,216 $53.1692 $4,253.54 Step 4 $116,124 $9,677 $55.8288 $4,466.31 Step 5 $121,932 $10,161 $58.6212 $4,689.69 1425 Human Resources Assistant NE C17 Step 1 $48,252 $4,021 $23.1981 $1,855.85 Step 2 $50,652 $4,221 $24.3519 $1,948.15 Step 3 $53,208 $4,434 $25.5808 $2,046.46 Step 4 $55,860 $4,655 $26.8558 $2,148.46 Step 5 $58,644 $4,887 $28.1942 $2,255.54 INDUSTRIAL DEVELOPMENT - • 3010 Industrial Development Director E E39 Step 1 $141,144 $11,762 $67,8577 $5,428.62 Step 2 $148,212 $12,351 $71,2558 $5,700.46 Step 3 $155,616 $12,968 $74.8154 $5,985,23 Step 4` $163,392 $13,616 $78,5538 $6,284,31 Step 5 $171,564 $14,297 $82.4827 $6,59$,62 1020 Economic Development Manager E M36 Step 1 $121,932 $10,161 $58.6212 $4,689.69 Step 2 $128,028 $10,669 $61.5519 $4,924.15 Step 3 $134,436 $11,203 $64.6327 $5,170.62 Step 4 $141,144 $11,762 $67.8577 $5,428.62 Step 5 $148,212 $12,351 $71.2558 $5,700.46 POLICE GROUP 4035 Police Cadet NE 3180 Step 1 $38,124 $3,177 $18.3288 $1,466.31 Step 2 $36,144 $3,012 $17.3769 $1,390.15 Step 3 $34,260 $2,855 $16.4712 $1,317.69 Step 4 $32,472 $2,706 $15.6115 $1,248.92 Step 5 $30,780 $2,565 $14.7981 $1,183.85 Step 6 $29,172 $2,431 $14.0250 $1,122.00 Step 7 $27,660 $2,305 $13.2981 $1,063.85 Step 8 $26,208 $2,184 $12.6000 $1,008.00 I 4015 Police Captain E PM39 Step 1 $141,144 $11,762 $67.8577 $5,428.62 Step 2 $148,212 $12,351 $71.2558 $5,700.46 Step 3 $155,616 $12,968 $74.8154 $5,985.23 Step 4 $163,392 $13,616 $78.5538 $6,284.31 Step 5 $171,564 $14,297 $82.4827 $6,598.62 I City of Vernon 14 of 21 Classification and Compensation Plan Effective June 28, 2015 New Class PAY, OccupationalJob . . Code Annual Monthly Hourly . . *1.5%COLA-Effective June 28,2015, various additions and revisions of classifications 4010 Police Chief E E46 Min $198,612 $16,551 $95.4865 $7,638.92 Max $241,404 $20,117 $116.0596 $9,284.77 4020 Police Lieutenant NE PM36 i Step 1 $121,932 $10,161 $58.6212 $4,689.69 Step 2 $128,028 $10,669 $61.5519 $4,924.15 Step 3 $134,436 $11,203 $64.6327 $5,170.62 Step 4 $141,144 $11,762 $67.8577 $5,428.62 Step 5 $148,212 $12,351 $71.2558 $5,700.46 4030 Police Officer NE P025 Step 1 $71,280 $5,940 $34.2692 $2,741.54 Step 2 $74,856 $6,238 $35.9885 $2,879.08 Step 3 $78,600 $6,550 $37.7885 $3,023.08 Step 4 $82,524 $6,877 $39.6750 $3,174.00 Step 5 $86,652 $7,221 $41.6596 $3,332.77 Y1 $83,784 $6,982 $40.2808 $3,222.46 Y2 $88,404 $7,367 $42.5019 $3,400.15 j Y3 $93,252 $7,771 $44.8327 $3,586.62 4025 Police Sergeant NE P030 Step 1 $90,984 $7,582 $43.7423 $3,499.38 Step 2 $95,544 $7,962 $45.9346 $3,674.77 Step 3 $100,320 $8,360 $48.2308 $3,858.46 j Step 4 $105,336 $8,778 $50.6423 $4,051.38 Step 5 $110,592 $9,216 $53.1692 $4,253.54 Y1 $102,012 $8,501 $49.0442 $3,923.54 Y2 $107,616 $8,968 $51.7385 $4,139.08 Y3 $113,544 $9,462 $54.5885 $4,367.08 Police SupportGroup 4125 Civilian Court Officer NE G17 I Step 1 $48,252 $4,021 $23.1981 $1,855.85 Step 2 $50,652 $4,221 $24.3519 $1,948.15 Step 3 $53,208 $4,434 $25.5808 $2,046.46 Step 4 $55,860 $4,655 $26.8558 $2,148.46 Step 5 $58,644 $4,887 $28.1942 $2,255.54 4123 Police Community Services Officer NE G16 Step 1 $45,960 $3,830 $22.0962 $1,768 Step 2 $48,252 $4,021 $23.1981 $1,856 Step 3 $50,652 $4,221 $24.3519 $1,948 Step 4 $53,208 $4,434 - $25,5808 $2,046 Step 5 $55,860 $4,655 $26,8558 $2,148 i I ii tiM1, City of Vernon 15 of 21 Classification and Compensation Plan Effective June 28, 2015 Class Occupationat JobFamilies and . . Classes FLSA •• .nthly Hour y Pay Perio& F7.5% OLA-Effective June 28, 2015, various additions and revisions of classifications 4130 Police Dispatcher NE G18 Step 1 $50,652 $4,221 $24.3519 $1,948.15 Step 2 $53,208 $4,434 $25,5808 $2,046.46 Step 3 $55,860 $4,655 $26.8558 $2,148.46 Step 4 $58,644 $4,887 $28.1942 $2,255.54 Step 5 $61,584 $5,132 $29.6077 $2,368,62 4115 Police Dispatcher, Lead NE G20 Step 1 $55,860 $4,655 $26.8558 $2,148.46 Step 2 $58,644 $4,887 $28.1942 $2,255.54 Step 3 $61,584 $5,132 $29.6077 $2,368.62 Step 4 $64,656 $5,388 $31,0846 $2,486.77 Step 5 $67,896 $5,658 $32.6423 $2,611.38 4110 Police Records Manager NE M27 Step 1 $78,600 $6,550 $37.7885 $3,023.08 Step 2 $82,524 $6,877 $39.6750 $3,174.00 Step 3 $86,652 $7,221 $41.6596 $3,332.77 Step 4 $90,984 $7,582 $43.7423 $3,499.38 Step 5 $95,544 $7,962 $45.9346 $3,674.77 � 4135 Police Records Technician NE G14 Step 1 $41,688 $3,474 $20,0423 $1,603.38 Step 2 $43,764 $3,647 $21.0404 $1,683.23 Step 3 $45,960 $3,830 $22.0962 $1,767.69 Step 4 $48,252 $4,021 $23.1981 $1,855.85 Step 5 $50,652 $4,221 $24.3519 $1,948.15 Y1 $51,540 $4,295 $24.7788 $1,982.31 4120 Police Records Technician, Lead NE G16 Step 1 $45,960 $3,830 $22.0962 $1,767.69 Step 2 $48,252 $4,021 $23.1981 $1,855.85 Step 3 $50,652 $4,221 $24.3519 $1,948.15 Step 4 $53,208 $4,434 $25.5808 $2,046.46 Step 5 $55,860 $4,655 $26.8558 $2,148.46 7015 Deputy Director of PW, Water and Dev. Sery E M38 Step 1 $134,436 $11,203 $64,6327 $5,170.62 Step 2 $141,144 $11,762 $67.8577 $5,428.62 Step 3 $148,212 $12,351 $71.2558 $5,700.46 Step 4 $155,616 $12,968 $74.8154 $5,985.23 Step 5 $163,392 $13,616 $78.5538 $6,284.31 i 7010 Director of PW, Water and Development Ser E E46 Min $198,612 $16,551 $95.4865 $7,638.92 Max $241,404 $20,117 $116.0596 $9,284.77 I i I City of Vernon 16 of 21 Classification and Compensation Plan n Effective June 28, 2015 New Class Occupational Job Families and i' ••- Job • •nthV �Hourly, Pay Period *1.5%COLA-Effective June 28,2015,various additions and revisions of classifications 7230 Building Inspector NE` G25 Step 1 $71,280 $5,940 $34.2692 $2,742' Step 2 $74,856 $6,238 $35.9885 $2,879 Step 3 $78,600 $6,550 $37.7885 $3,023 Step 4 $82,524 $6,877 $39.6750 $3,174' Step 5 $86,652 $7,221 $41.6596 $3,333 7215 Building Inspector, Senior NE G27 Step 1 $78,600 $6,550 $37.7885 $3,023.08 Step 2 $82,524 $6,877 $39.6750 $3,174.00 Step 3 $86,652 $7,221 $41.6596 $3,332.77 Step 4 $90,984 $7,582 $43.7423 $3,499.38 Step 5 $95,544 $7,962 $45.9346 $3,674.77 Y1 $96,612 $8,051 $46.4481 $3,715.85 7225 Electrical Inspector NE G25 Step 1 $71,280 $5,940 $34.2692 $2,741.54 Step 2 $74,856 $6,238 $35.9885 $2,879.08 Step 3 $78,600 $6,550 $37.7885 $3,023.08 Step 4 $82,524 $6,877 $39.6750 $3,174.00 Step 5 $86,652 $7,221 $41.6596 $3,332.77 7213 Electrical Inspector, Senior NE G27- Step 1 $78,6900 $6,550 $37.7885 $3,023' Step 2 $82,524 $6,877 $39.6750 $3,174 Step 3 $86,652 $7,221 $41,6596 $3,333 Step 4, $90,984 $7,582 $43.7423 $3,499` Step 5 $95,544 $7,962 $45,9346 $3,675 7250 Permit Technician NE G17 Step 1 $48,252 $4,021 $23.1981 $1,855.85 Step 2 $50,652 $4,221 $24.3519 $1,948.15 Step 3 $53,208 $4,434 $25.5808 $2,046.46 Step 4 $55,860 $4,655 $26.8558 $2,148.46 Step 5 $58,644 $4,887 $28.1942 $2,255.54 7220 Assistant Planner NE G22 Step 1 $61,584 $5,132 $29.6077 $2,368.62 Step 2 $64,656 $5,388 $31.0846 $2,486.77 Step 3 $67,896 $5,658 $32.6423 $2,611.38 Step 4 $71,280 $5,940 $34.2692 $2,741.54 Step 5 $74,856 $6,238 $35.9885 $2,879.08 7235 Plumbing and Mechanical Inspector NE G25 Step 1 $71,280 $5,940 $34.2692 $2,741.54 Step 2 $74,856 $6,238 $35.9885 $2,879.08 Step 3 $78,600 $6,550 $37.7885 $3,023.08 I City of Vernon 17 of 21 Classification and Compensation Plan Effective June 28, 2015 I New 1,,Class PAY: Occupational Job Families and Job Classes FLSA .. • .. *1.5%COLA-Effective June 28, 2015, various additions and revisions of classifications Step 4 $82,524 $6,877 $39.6750 $3,174.00 Step 5 $86,652 $7,221 $41.6596 $3,332.77 7213 Plumbing and Mechanclal Inspector, Senior NE G27 Step 1 $78,600 $6,550 $37,7885 $3,023.08 Step 2 $82,524 $6,877 $39.6750 $3,174.00 Step'3 $86,652 $7,221 $41,6596 $3,332.77 Step $90,984 $7,582 $43.7423 $3,499.38 Step'5 $95,544 $7,962 $45.9346 $3,674.77 GroupEngineering Works) 7140 Assistant Engineer NE G24 Step 1 $67,896 $5,658 $32.6423 $2,611.38 Step 2 $71,280 $5,940 $34.2692 $2,741.54 Step 3 $74,856 $6,238 $35.9885 $2,879.08 Step 4 $78,600 $6,550 $37.7885 $3,023.08 Step 5 $82,524 $6,877 $39.6750 $3,174.00 7135 Associate Engineer NE G28 Step 1 $82,524 $6,877 $39.6750 $3,174.00 Step 2 $86,652 $7,221 $41.6596 $3,332.77 Step 3 $90,984 $7,582 $43.7423 $3,499.38 Step 4 $95,544 $7,962 $45.9346 $3,674.77 Step 5 $100,320 $8,360 $48.2308 $3,858.46 7118 Civil Engineer NE M32 Step 1 $100,320 $8,360 $48.2308 $3,858.46 Step 2 $105,336 $8,778 $50.6423 $4,051.38 Step 3 $110,592 $9,216 $53.1692 $4,253.54 Step 4 $116,124 $9,677 $55.8288 $4,466.31 Step 5 $121,932 $10,161 $58.6212 $4,689.69 7145 Engineering Aide NE G21 Step 1 $58,644 $4,887 $28.1942 $2,255.54 Step 2 $61,584 $5,132 $29.6077 $2,368.62 Step 3 $64,656 $5,388 $31.0846 $2,486.77 Step 4 $67,896 $5,658 $32.6423 $2,611.38 Step 5 $71,280 $5,940 $34.2692 $2,741.54 7115 Principal Civil Engineer E M36 Step 1 $121,932 $10,161 $58.6212 $4,689.69 Step 2 $128,028 $10,669 $61.5519 $4,924.15 Step 3 $134,436 $11,203 $64.6327 $5,170.62 Step 4 $141,144 $11,762 $67.8577 $5,428.62 Step 5 $148,212 $12,351 $71.2558 $5,700.46 City of Vernon 18 of 21 Classification and Compensation Plan Effective June 28, 2015 Class Occupationat Job . . Classes FLSA . . . . 1.5%COLA-Effective June 28,2015,various additions and revisions of classifications 7120 Project Engineer NE G30 Step 1 $90,984 $7,582 $43.7423 $3,499.38 Step 2 $95,544 $7,962 $45.9346 $3,674.77 Step 3 $100,320 $8,360 $48.2308 $3,858.46 Step 4 $105,336 $8,778 $50.6423 $4,051.38 Step 5 $110,592 $9,216 $53.1692 $4,253.54 7125 Stormwater and Special Projects Analyst NE G27 Step 1 $78,600 $6,550 $37.7885 $3,023.08 Step 2 $82,524 $6,877 $39.6750 $3,174.00 Step 3 $86,652 $7,221 $41.6596 $3,332.77 Step 4 $90,984 $7,582 $43.7423 $3,499.38 Step 5 $95,544 $7,962 $45.9346 $3,674.77 Facilities Maintenance GrouI2 7720 Facilities Maintenance Worker NE G16 Step 1 $45,960 $3,830 $22.0962 $1,767.69 Step 2 $48,252 $4,021 $23.1981 $1,855.85 Step 3 $50,652 $4,221 $24.3519 $1,948.15 Step 4 $53,208 $4,434 $25.5808 $2,046.46 Step 5 $55,860 $4,655 $26.8558 $2,148.46 7735 Facilities Maintenance Worker, Lead NE G22 Step 1 $61,584 $5,132 $29.6077 $2,368.62 Step 2 $64,656 $5,388 $31.0846 $2,486.77 Step 3 $67,896 $5,658 $32.6423 $2,611.38 Step 4 $71,280 $5,940 $34.2692 $2,741.54 Step 5 $74,856 $6,238 $35.9885 $2,879.08 YC1 $75,936 $6,328 $36.5077 $2,920.62 7730 Facilities Maintenance Worker, Senior NE G18 Step 1 $50,652 $4,221 $24.3519 $1,948.15 Step 2 $53,208 $4,434 $25.5808 $2,046.46 Step 3 $55,860 $4,655 $26.8558 $2,148.46 Step 4 $58,644 $4,887 $28.1942 $2,255.54 Step 5 $61,584 $5,132 $29.6077 $2,368.62 Garage . • 7530 Mechanic NE G19 Step 1 $53,208 $4,434 $25.5808 $2,046.46 Step 2 $55,860 $4,655 $26.8558 $2,148.46 Step 3 $58,644 $4,887 $28.1942 $2,255.54 Step 4 $61,584 $5,132 $29.6077 $2,368.62 Step 5 $64,656 $5,388 $31.0846 $2,486.77 7520 Mechanic, Lead NE G23 Step 1 $64,656 $5,388 $31.0846 $2,486.77 Step 2 $67,896 $5,658 $32.6423 $2,611.38 City of Vernon 19 of 21 Classification and Compensation Plan Effective June 28, 2015 ew Class • . . . . GRADE Annual! Monthly., Hour y:, Pay . . Code I 70LA-Effective June 28,2015, various additions and revisions of classifications Step 3 $71,280 $5,940 $34.2692 $2,741.54 Step 4 $74,856 $6,238 $35.9885 $2,879.08 Step 5 $78,600 $6,550 $37.7885 $3,023.08 7525 Mechanic, Senior NE G21 Step 1 $58,644 $4,887 $28.1942 $2,255.54 Step 2 $61,584 $5,132 $29.6077 $2,368.62 Step 3 $64,656 $5,388 $31.0846 $2,486.77 Step 4 $67,896 $5,658 $32.6423 $2,611.38 Step 5 $71,280 $5,940 $34.2692 $2,741.54 Meter Reading_group 7830 Meter Reader NE G18 Step 1 $50,652 $4,221 $24.3519 $1,948.15 Step 2 $53,208 $4,434 $25.5808 $2,046.46 Step 3 $55,860 $4,655 $26.8558 $2,148.46 Step 4 $58,644 $4,887 $28,1942 $2,255.54 Step 5 $61,584 $5,132 $29.6077 $2,368.62 7820 Meter Reader, Lead NE G20 Step 1 $55,860 $4,655 $26.8558 $2,148.46 Step 2 $58,644 $4,887 $28.1942 $2,255.54 Step 3 $61,584 $5,132 $29.6077 $2,368.62 j Step 4 $64,656 $5,388 $31.0846 $2,486.77 Step 5 $67,896 $5,658 $32.6423 $2,611.38 j Street - I 7430 Street Maintenance Worker NE G15 Step 1 $43,764 $3,647 $21.0404 $1,683.23 Step 2 $45,960 $3,830 $22.0962 $1,767.69 Step 3 $48,252 $4,021 $23.1981 $1,855.85 Step 4 $50,652 $4,221 $24.3519 $1,948.15 Step 5 $53,208 $4,434 $25.5808 $2,046.46 7425 Street Maintenance Worker, Senior NE G18 Step 1 $50,652 $4,221 $24.3519 $1,948.15 Step 2 $53,208 $4,434 $25.5808 $2,046.46 Step 3 $55,860 $4,655 $26.8558 $2,148.46 j Step 4 $58,644 $4,887 $28.1942 $2,255.54 Step 5 $61,584 $5,132 $29.6077 $2,368.62 Warehouse Group_ 7630 Warehouse Worker NE G16 Step 1 $45,960 $3,830 $22.0962 $1,767.69 Step 2 $48,252 $4,021 $23.1981 $1,855.85 Step 3 $50,652 $4,221 $24.3519 $1,948.15 Step 4 $53,208 $4,434 $25.5808 $2,046.46 Step 5 $55,860 $4,655 $26.8558 $2,148.46 ! City of Vernon 20 of 21 Classification and Compensation Plan Effective June 28, 2015 i,Class Occupational . . . . Classes FL4[ PAY 11 .. i .. F5%COLA-Effective June 28,2015,various additions and revisions of classifications 7620 Warehouse Worker, Lead NE G21 Step 1 $58,644 $4,887 $28.1942 $2,255.54 Step 2 $61,584 $5,132 $29.6077 $2,368.62 Step 3 $64,656 $5,388 $31.0846 $2,486.77 Step 4 $67,896 $5,658 $32.6423 $2,611.38 Step 5 $71,280 $5,940 $34.2692 $2,741.54 Y1 $73,704 $6,142 $35.4346 $2,834.77 7625 Warehouse Worker, Senior NE G18 Step 1 $50,652 $4,221 $24.3519 $1,948.15 Step 2 $53,208 $4,434 $25.5808 $2,046.46 Step 3 $55,860 $4,655 $26.8558 $2,148.46 Step 4 $58,644 $4,887 $28.1942 $2,255.54 Step 5 $61,584 $5,132 $29.6077 $2,368.62 Public Works and Water • .• 7330 Public Works Foreman E M26 Step 1 $74,856 $6,238 $35.9885 $2,879.08 Step 2 $78,600 $6,550 $37.7885 $3,023.08 Step 3 $82,524 $6,877 $39.6750 $3,174.00 Step 4 $86,652 $7,221 $41.6596 $3,332.77 Step 5 $90,984 $7,582 $43.7423 $3,499.38 7320 Public Works and Water Foreman E M28 Step 1 $82,524 $6,877 $39.6750 $3,174.00 Step 2 $86,652 $7,221 $41.6596 $3,332.77 Step 3 $90,984 $7,582 $43.7423 $3,499.38 Step 4 $95,544 $7,962 $45.9346 $3,674.77 Step 5 $100,320 $8,360 $48.2308 $3,858.46 7310 Public Works and Water Superintendent E M33 Step 1 $105,336 $8,778 $50.6423 $4,051.38 Step 2 $110,592 $9,216 $53.1692 $4,253.54 Step 3 $116,124 $9,677 $55.8288 $4,466.31 Step 4 $121,932 $10,161 $58.6212 $4,689.69 Step 5 $128,028 $10,669 $61.5519 $4,924.15 7130 Public Works Project Coordinator NE G29 Step 1 $86,652 $7,221 $41.6596 $3,332.77 Step 2 $90,984 $7,582 $43.7423 $3,499.38 Step 3 $95,544 $7,962 $45.9346 $3,674.77 Step 4 $100,320 $8,360 $48.2308 $3,858.46 Step 5 $105,336 $8,778 $50.6423 $4,051.38 i 7132 Public Works Water Project Coordinator NE G29 Step 1 $86,652 $7,221 $41.6596 $3,332.77 I Step 2 $90,984 $7,582 $43.7423 $3,499.38 Step 3 $95,544 $7,962 $45.9346 $3,674.77 Step 4 $100,320 $8,360 $48.2308 $3,858.46 City of Vernon 21 of 21 Classification and Compensation Plan Effective June 28, 2015 Class s . . . . Classes FLSA.. PeriodHourlyPay 1.5%COLA-Effective June 28,2015,various additions and revisions of classifications Step 5 $105,336 $8,778 $50.6423 $4,051.38 7325 Street and Water Crew Leader NE G24 Step 1 $67,896 $5,658 $32.6423 $2,611.38 Step 2 $71,280 $5,940 $34.2692 $2,741,54 Step 3 $74,856 $6,238 $35.9885 $2,879.08 Step 4 $78,600 $6,550 $37.7885 $3,023.08 Step 5 $82,524 $6,877 $39.6750 $3,174.00 Water Maintenance Group 7930 Water Maintenance Worker NE G17 Step 1 $48,252 $4,021 $23.1981 $1,855.85 Step 2 $50,652 $4,221 $24.3519 $1,948.15 Step 3 $53,208 $4,434 $25.5808 $2,046.46 Step 4 $55,860 $4,655 $26.8558 $2,148.46 Step 5 $58,644 $4,887 $28.1942 $2,255.54 7925 Water Maintenance Worker, Senior NE G22 Step 1 $61,584 $5,132 $29.6077 $2,368.62 Step 2 $64,656 $5,388 $31.0846 $2,486.77 Step 3 $67,896 $5,658 $32.6423 $2,611.38 Step 4 $71,280 $5,940 $34.2692 $2,741.54 Step 5 $74,856 $6,238 $35.9885 $2,879.08 I Attachment 2 Assistant Fire Marshal Job Description I � F[T IN�V JOB DESCRIPTION Assistant Fire Marshal Date Prepared: Draft Class Code: 5033 SUMMARY: Under general supervision, assists in leading the Vernon Fire Department (VFD) Fire Prevention Division in the inspection, enforcement, and review of fire and life safety codes and standards; assists in managing the VFD fire prevention and education programs, participates and coordinates fire code inspection program and activities, and assists in the investigation of arson cases. ESSENTIAL FUNCTIONS: --Essential functions, as defined under the Americans with Disabilities Act, may include any of the following representative duties,knowledge, and skills. This is not a comprehensive listing of all functions and duties performed by incumbents of this class; employees may be assigned duties which are not listed below;reasonable accommodations will be made as required. The job description does not constitute an employment agreement and is subject to change at any time by the employer. Essential duties and responsibilities may include, but are not limited to, the following; • Assists in the operations of Fire Prevention Division; manages a variety of special projects and assignments, including training, public education, inspections, and pre-fire planning. • May perform work as City's Fire Marshal in their absence, ; assists in oversight and performs fire inspection, fire investigation, code review & enforcement, construction plan review, and public education functions; assures program compliance with City policies and national standards; maintains signature authority for all permits issued for fire and life safety code compliance; coordinates activities with other City departments. • Leads the inspection of buildings, structures, and fire suppression systems; verifies compliance with fire prevention regulations; develops, writes, and reviews fire pre-plans. • Participates in the planning, coordination, and preparation of emergency preparedness and disaster relief response plans; updates and maintains the City's Disaster Response Plan. • May supervise Fire Code Inspector(s); prioritize and assign tasks and projects; trains staff, monitors work, develops staff skills, and evaluates performance. • Provides responsible administrative support to the Fire Marshal; prepares and presents staff reports and other necessary correspondence. • Assists in developing fire prevention, inspection, and investigation policies, goals, and priorities; researches, reviews, and interprets and explains fire and life safety, and fire codes, ordinances, regulations, statutes, policies and procedures, and standards. • Provides technical assistance to owners, developers, and design professionals in meeting fire and life safety code requirements; issues warnings and citations for fire and life safety code violations; meets with clients to discuss and resolve compliance issues, and develop solutions to mitigate and eliminate hazards. • Assists field inspectors in resolving difficult and unusual requirements for projects and complex hazard evaluations; conducts field inspections and fire investigations as needed to meet workload demands. • Assists in the investigation of all fires and suspicious incidents; works with other agencies to coordinate enforcement activities and investigate crime scenes; supervises fire investigation teams. • Assists in evaluation of fire and safety issues, analyzes trends, and recommends solutions. • Reviews and approves reports, and prepares and maintains Division records and reports. • Participates in the development and administration of the Fire Prevention Division annual budget; recommends additional funds needed for staffing, equipment, materials, and supplies. • Conducts and assists in the development of public education sessions on fire and life safety for a wide variety of audiences. • Continuously updates knowledge of City geography, traffic patterns, streets, landmarks, building locations, and special hazards of designated facilities, to assure that investigation activities are accomplished in a fast, effective and safe manner. Assistant Fire Marshal Vernon CA 1 of 3 • Stays abreast of current developments in legislation and trends, which may affect the Fire Prevention Division; maintains Federal, State and local mandates. • Supports the relationship between the City of Vernon and the general public by demonstrating courteous and cooperative behavior when interacting with visitors and City staff; maintains confidentiality of work- related issues and City information; performs other duties as required or assigned. MINIMUM QUALIFICATIONS: Education, Training and Experience Guidelines: Must have an A.A. or A.S. Degree in Fire Science, Construction Technology, Civil, Mechanical, or Fire Protection Engineering or other related field, or B.A. or B.S. Degree with 24 Units in Fire Science, Construction Technology, Civil, Mechanical, or Fire Protection Engineering or related field. Must have at least four(4)years of experience as a California State Certified Firefighter or have seven (7)years' experience as an ICC Fire Inspector with at least 18 units in fire science. Must have three (3)years of increasingly responsible experience in fire engineering, fire code and environmental compliance or fire prevention and plan check/inspection which includes at least one (1) year of supervisory or lead experience. Knowledge of: • City and VFD policies and procedures. • State and federal regulations, practices, and procedures governing fire safety and emergency services. • Principles, methods and practices of plan review, code enforcement, and building construction. • Techniques and procedures for fire origin and cause investigations. • Methods and techniques of inspecting buildings and facilities, including building materials analysis. • Methods, practices and procedures for fire prevention, fire suppression, hazardous material responses, emergency medical services, rescue operations, and fire investigations. • Procedures and equipment used in modern firefighting and emergency medical response. • National Fire Protection Association (NFPA) and International Fire Service Training Association (IFSTA) training and safety standards. • Operational characteristics of fire suppression apparatus and equipment. j • City geography, traffic patterns, and the location of all streets, landmarks, buildings, and water mains. Skill in: • Using initiative and independent judgment within established procedural guidelines, while assuring compliance with VFD goals and objectives. • Analyzing problems, identifying alternative solutions, projecting consequences of proposed actions, and implementing recommendations in support of goals. • Preparing pre-fire plans and recognizing the construction, contents, and occupancy of buildings in order to apply appropriate inspection and investigation techniques. • Managing risk reduction, inspection, investigation, and fire prevention programs.. • inspecting commercial facilities for fire and safety code hazards and construction standards. • Interpreting and applying safety standards, and state and federal rules and regulations. • Investigating and securing crime scenes, and recognizing evidence and causes of arson and accidents. • Effectively supervising and training staff, and delegating tasks and authority. • Assessing and prioritizing multiple tasks, projects and demands. • Operating and maintaining specialized computer and communications equipment. • Establishing and maintaining cooperative working relationships with co-workers and representatives from other local, state, and federal agencies. • Communicating effectively verbally and in writing. LICENSE AND CERTIFICATION REQUIREMENTS: A valid California State Class C Driver's License is required. Certifications for California State Fire Marshal, in Company Officer, and Fire Prevention 1 A, 1 B, 1 C, 2A, 2B, 2C are required, or complete the International Code Council (ICC) Building Inspector, Fire Inspector, and Plans Examiner/Building Official certifications for Civilian Assistant Fire Marshal Vernon CA 2 of 3 Fire Inspector II, Additional technical training and certifications are preferred, Haz Mat Technician, Emergency Medical Technician, Investigation 1A and 1 B, Instructor 1A and 1 B and to include California Incident Command Certification System (CICCS) PHYSICAL DEMANDS AND WORKING ENVIRONMENT; Work is performed in a standard office environment, in fire department facilities, and in the field for inspections, investigations, and evaluation of emergency situations; may be exposed to the same work hazards as Fire Department Captains, Must maintain a level of physical fitness to meet VFD standards. I Assistant Fire Marshal Vernon CA 3 of 3 Attachment 3 � Industrial Development Director Job Description �I V 4�rVF1.Y 1M9J` JOB DESCRIPTION Industrial Development Director Date Prepared: Draft Class Code: 3010 SUMMARY: Under administrative direction of the City Administrator, this executive level position performs the professional and administrative functions of directing, planning, leading, organizing and managing the activities of the Industrial Development Department; implements City policies and establishes procedures related to industrial development, policy development, public and business relations, business retention, expansion, relocation and attraction programs, real property acquisition and disposition, and department operations. Serves as staff person to the Economic and Business Development Commission and the City of Vernon Successor Agency. ESSENTIAL FUNCTIONS: -- Essential functions, as defined under the Americans with Disabilities Act, may include any of the following representative duties, knowledge, and skills. This is not a comprehensive listing of all functions and duties performed by incumbents of this class; employees maybe assigned duties which are not listed below;reasonable accommodations will be made as required. The job description does not constitute an employment agreement and is subject to change at any time by the employer.Essential duties and responsibilities may include,but are not limited to,the following: • Directs, plans, and coordinates the Department's work plan including business attraction, job retention and creation, business assistance, marketing, budgeting, evaluation of trends and related functions. • Reviews and evaluates departmental effectiveness, work methods and procedures; meets with key staff to identify and resolve problems. • Determines the overall Departmental organizational structure, mission, core services and allocation of financial, human and capital resources; develops and administers the departmental operating budget. • Develops marketing program and coordinates activities for attracting new industry and commerce to the City, including assisting existing businesses, entrepreneurial and small business development, and other business retention and expansion efforts in the City; identify market sites for business development. • Coordinates activities with consulting firms in the areas of property appraisal, land acquisition and disposition, relocation, project development, and legal counsel; negotiates with developers, real estate agents, and property owners to promote and ensure successful completion of industrial development projects and related real property purchases and leases; prepares Requests for Proposals soliciting outside agents to perform land acquisitions, appraisals and relocations. • Directs, coordinates, monitors, and evaluates strategies, programs, and activities to ensure business retention and expansion. • Assists the City Administrator, and City Council in establishing economic goals and policies; performs short and long range planning to ensure economic growth. • Communicates information about Successor Agency activities to officials, developers, and the public. • Serves as a technical advisor to the City Administrator and the City Council regarding industrial economic development matters. • Oversees and directs the activities to unwind the Vernon Redevelopment Agency pursuant to the Dissolution Act of 2011 and other mandates that might follow. • Develops and manages short- and long-term Department goals, objectives, policies, and procedures. • Supervises subordinate staff; sets work priorities; creates work schedules; provides training; conducts performance evaluations. • Reviews legislative developments which may impact industrial/economic development programs, policies, and/or procedures. Industrial Development Director Vernon CA 1 of 3 i • Analyzes economic data and prepares long-term business and financial forecasts in coordination with other City departments. • Advises, and otherwise provides assistance to the City Council, Commissions, other City personnel, and the public regarding related issues; prepares and presents reports and recommendations relating to the industrial development of the City. • Confers with developers, representatives of residential, commercial, and industrial interests, property owners, and others in promoting and coordinating the development and use of property within the City; confers with other City staff on related activities, • Attends City Council meetings and work sessions, and researches issues for the City Administrator, Mayor, and City Council; assures effective communication of major project and policy issues. • Develops and presents status and summary reports; reviews documents and reports prepared by consultants and staff to assure accuracy, completeness and appropriateness, • Directs the preparation of technical and administrative reports; presents reports along with recommendations to the City Administrator, City Council, boards and commissions. • Represents the Department to other departments, elected officials and external agencies. • Attends internal and external stakeholder meetings; meets with City committees, commissions, residents and businesses to discuss and resolve issues; oversees projects and regional issues with local officials, agencies, businesses, community organizations, and advocates. • Confers with developers, commercial representatives, industrial interests, property owners and others in promoting and coordinating the development and use of property within the City. • Assists and supports other departments with activities that overlap with industrial development, redevelopment dissolution activities and business financial strategies such as the issuance of bonded debt, operation of land resources and negotiation of public/private partnerships. • Supports the relationship between the City of Vernon and the general public by demonstrating courteous and cooperative behavior when interacting with visitors and City staff; maintains confidentiality of work- related issues and City information; performs other duties as required or assigned, MINIMUM QUALIFICATIONS: Education, Training and Experience Guidelines: Bachelor's Degree in Economics, Finance, Business, Public Administration, Urban Planning or related field; AND five years of increasingly responsible experience in the implementation and administration of economic or industrial development, finance, commercial real estate, redevelopment or urban planning programs; including three years of supervisory or management experience. Master's Degree in Economics, Finance, Business, Public Administration, Urban Planning or a related field is highly desirable. Knowledge of: • City organization, operations, policies, and procedures. • Federal and state laws and regulations governing municipalities, and City rules and ordinances. • California redevelopment law, including the Dissolution Act of 2011. • Principles and practices of local government administrative management, including personnel rules, procurement,finance, budgeting,contract and risk management, performance management, and evaluation of public sector programs, policies, and operations, • Economic development principles and program implementation methods, including business development, redevelopment, marketing, and local government financial incentives for business and economic development projects. • Urban and regional economics and finance • Strategic planning techniques for the economic, financial, and environmental needs of the City, • Legal, ethical, and professional rules of conduct for municipal government officers, • Current political and economic trends in state and federal government. • Techniques and practices for efficient and cost effective management of resources. • Business computers and standard and specialized software applications. Industrial Development Director Vernon CA 2 of 3 i Skill in: • Analyzing complex administrative and operational issues, interpreting laws and regulations, evaluating alternatives, and developing recommendations, strategies, and operational improvements. • Analyzing City needs, and prioritizing and promoting operational strategies to meet future needs. • Preparing, tracking, and administering budgets. • Analysis of economic studies, financial statements, pro formas, marketing studies, plans, specifications and bid documents. • Determining economic development potential and opportunities, and developing plans and programs for the acquisition and retention of industry and business in the community. • Interpreting and applying municipal policies and procedures. • Presenting and defending operational reports and information in public meetings. • Analyzing problems, resolving disputes and conflicts, and developing effective solutions. • Using initiative and independent judgment within established procedural guidelines. • Assessing and prioritizing multiple tasks, projects and demands. • Establishing and maintaining cooperative working relationships with City employees, elected officials, community groups, advocates, and representatives from other local, state, and federal agencies. • Communicating effectively verbally and in writing. LICENSE AND CERTIFICATION REQUIREMENTS; Possession of a valid California State Driver's License, PHYSICAL DEMANDS AND WORKING ENVIRONMENT; Work is performed in a standard office environment with some exposure to an outdoor work environment. I l 1 Industrial Development Director Vernon CA 3 of 3 Attachment 4 Police Community Services Officer Job Description V o};7oow R r JOB DESCRIPTION Police Community Service Officer Date Prepared: DRAFT Job Class: 4123 SUMMARY: Under general supervision, performs a variety of administrative duties in a non-sworn capacity in support of Police Department operations, services, and functions including but not limited to the areas of patrol, traffic control, parking enforcement, community policing, records, investigations, works closely with and provides support to sworn police officers to relieve sworn police officers of technical police related duties in the field and office; performs a variety of other duties based on the needs of the department including those related to special assignments. ESSENTIAL FUNCTIONS:--Essential functions, as defined under the Americans with Disabilities Act, may include any of the following representative duties,knowledge, and skills. This is not a comprehensive listing of all functions and duties performed by incumbents of this class; employees maybe assigned duties which are not listed below;reasonable accommodations will be made as required, The job description does not constitute an employment agreement and is subject to change at any time by the employer. Essential duties and responsibilities may include, but are not limited to, the following, • Prepares basic criminal reports; uses a computer terminal or personal computer to enter and retrieve data. • Maintains and submits daily officer's log on both paper and electronic media. • Testifies in court proceedings as required; prepares exhibits for the District Attorney and court as assigned. • Provides a full range of information to citizens and other interested parties; interprets, applies and explains ordinances, rules, codes, and regulations; enforces codes; assists citizens needing medical attention until paramedics arrive; provides basic first aid. • Attends and participates in local and regional training and professional group meetings; keeps informed of new trends and innovations. • Performs related duties as required. • Supports the relationship between the City of Vernon and the general public by demonstrating courteous and cooperative behavior when interacting with visitors and City staff; maintains confidentiality of work-related issues and City information; performs other duties as required or assigned. Investigations: • Assists Police Officers and Detectives in crime investigation and reporting, or investigates assigned cases including auto theft and embezzled vehicle cases, and related cases, traffic collisions/traffic hazards. • Receives and files crime reports; assists on investigation cases including interviewing victims, witnesses, and preserves crime scenes appropriately; assists in gathering other information for police officers, and documents as necessary. Patrol/Community Policing/Traffic Functions: • Responds to and assists at non-injury, minor injury, and major injury traffic collisions; provides first aid at the scene; provides traffic control at accident scenes and assists in directing other responders/units and emergency medical personnel into the scene; requests tow trucks as necessary; impounds vehicles as necessary; coordinates with appropriate agencies and/or staff to ensure collision debris/hazardous materials are removed from scene. Police Community Service Officer Vernon CA 1 of 3 • Participates in searches including those for missing persons, runaways, and elderly/disabled walk- aways, • Provides traffic control; identifies and removes or coordinates the removal of traffic hazards assists disabled motorists. • Provides transportation services including but not limited to; non-suspect adults and children, non- injured collision victims, found individuals, children being assigned to the Children's Center. • Issues notices, warnings, and citations and impounds vehicles; enforces parking regulations, vehicle code and local municipal codes; writes citations for parking violations including for vehicles stored on roadway. • Coordinates the removal of vehicles causing safety and traffic hazards off of City streets including abandoned, wrecked, issuing notices and citations, and tagging vehicles; follows-up on vehicles that have been issued 72 hour notices; impounds vehicles as required; processes necessary forms and related paperwork, Records Functions: • Provides customer service to citizens at the Police Department front-desk; answers telephones, provides information and routes calls to appropriate personnel; greets visitors, provides information, and logs in visitors; prepares agency releases for stored or impounded vehicles, • Collects vehicle impound fees voids citations in accordance with guidelines, MINIMUM QUALIFICATIONS: Education: High School Diploma or GED equivalent; AND one year of work experience involving public contact and performance of basic office support duties. Experience in a law enforcement or related work environment is desirable. Knowledge of: • City and VPD policies and procedures. • Basic law enforcement organization, activities, terminology, practices, and regulations. • Basic bookkeeping and clerical accounting principles, practices and terminology, • Modern office procedures, methods, and equipment including computers. • Computer applications such as word processing. • Safe work methods and safety regulations pertaining to the work including safe driving principles and practices. • Geography, roads, and landmarks of City and surrounding areas, • Effective communication skills and techniques required for gathering, evaluating and transmitting information. • Principles and practices of customer service, • Effective English usage, to include proper spelling, grammar, and punctuation. Ability to: • Learn methods and techniques related to basic police functions. • Understand, interpret, and apply pertinent federal, state, and local codes, laws, and regulations including vehicle codes, penal codes, and municipal codes. • Understand, interpret, and apply general and specific administrative and departmental policies, procedures, and guidelines.. • Prepare clear, concise, factual, and thorough reports and statements. • Prepare, maintain, file, and index a variety of reports, records, and other written materials, • Identify and respond to community and organizational issues, concerns, and needs. • Organize and prioritize timelines and project schedules in an effective and timely manner. • Analyze problems, identify alternative solutions, project consequences of proposed actions and implement recommendations in support of goals. Police Community Service Officer Vernon CA 2 of 3 • Establish and maintain various data collection, record keeping, tracking, filing, and reporting systems. • Operate assigned vehicle in a safe manner. • Use and operate assigned tools and equipment including portable radio, camera, and evidence/fingerprint kit. • Exercise tact and judgment in responding to inquiries and resolving complaints and problems. • Work under steady pressure with frequent interruptions and a high degree of public contact by phone or in person. • Demonstrate an awareness and appreciation of the cultural diversity of the community, • Lift and move objects weighing up to 50 pounds. • Communicate clearly and concisely, both orally and in writing. • Establish and maintain effective and courteous relationships with the public and co-workers and contribute to a successful team effort. • Operate and use various office equipment including a computer and various software packages. LICENSE AND CERTIFICATION REQUIREMENTS; A valid California State Driver's License is required. Completion of PC 832 course, or the ability to complete the course within the designated timeframe, Possession of or ability to obtain within designated timeframe, OC certification. Possession of or ability to obtain within designated timeframe, CPR/First Aid certification, Must successfully pass a Police Department background check. Must be 18 years of age at time of appointment. PHYSICAL DEMANDS AND WORKING ENVIRONMENT; Work is performed in a standard office environment, and in the field to lead investigations and tactical situations; may be exposed to physical attacks, hazardous chemicals, infectious and communicable diseases; required to physically restrain persons; must maintain a level of physical fitness to meet VPD standards, I I i Police Community Service Officer Vernon CA 3 of 3 i I Attachment 5 Building Inspector Job Description i 5 1T tMOV*R JOB DESCRIPTION Building Inspector Date Prepared: DRAFT Class Code: 7230 SUMMARY: Under basic supervision, examines, reviews and performs complex plan check review and inspections of buildings to ensure compliance with building code regulations, local ordinances and state laws. DISTINGUSHING CHARACTERISTICS: The Building Inspector is the journey level classification within the Building Inspector series, responsible for performing complex work assigned to the series. Positions at this level possess a specialized knowledge, are assigned tasks up to the journey level, and require the acquisition of Building certification. ESSENTIAL FUNCTIONS: --Essential functions, as defined under the Americans with Disabilities Act, may include any of the following representative duties,knowledge, and skills. This is not a comprehensive listing of all functions and duties performed by incumbents of this class; employees may be assigned duties which are not listed below;reasonable accommodations will be made as required, The job description does not constitute an employment agreement and is subject to change at any time by the employer. Essential duties and responsibilities may include, but are not limited to, the following: • Reviews construction plans and documents for residential, industrial, and commercial buildings and systems for code compliance including general building, and disability accessibility requirements. • Reviews plans and construction work for proper installation methods and use of compliant materials. • Inspects work during various phases of construction for compliance; orders corrective action as necessary; prepares reports of inspections and completed work; approves compliant work. • Investigates code violations; posts "stop work" orders; prepares reports of findings. • Assists in the coordination of inspection activities with other City departments. • Performs occupancy, zoning, land use and code enforcement inspections; issues compliance orders and/or citations; prepares case logs; serves as a witness regarding appeals to enforcement cases. • Assists the public at the permit counter; provides general information; advises and interprets codes to the general public, contractors, engineers, architects and others as required; calculates fees and issues permits. • Coordinates construction progress with other City departments, divisions and/or external agencies. • Maintains all public records for public examination. • Assists in arranging, initiating, coordinating, and overseeing special inspections and checks test results for conformance to specification requirements. • Performs calculations to assure proper sizing of systems. Reviews and examines materials delivered to job sites to ensure compliance with specifications and submittals. • Maintains inspection records and documentation on an automated data base. • Assists in the preparation of new regulations; recommends revisions of existing regulations. • Maintain public records for public examination. • Attends various seminars and training courses for professional development. • Supports the relationship between the City of Vernon and the general public by demonstrating courteous and cooperative behavior when interacting with visitors and City staff; maintains confidentiality of work- related issues and City information; performs other duties as required or assigned.. MINIMUM QUALIFICATIONS: Building Inspector Vernon CA 1 of 2 Education, Training and Experience Guidelines: Associate Degree in Architecture, Engineering, Construction Management or a closely related field preferred; AND two years of building inspection experience. Knowledge of: • City organization, operations, policies, and procedures. • Methods, techniques and materials used in the design and construction of residential, industrial and commercial structures. • Plan reading for residential and commercial projects. • Building codes • CalGreen building codes. • California Energy Code, • General provisions of housing, and building, codes and ordinances. • Methods of investigation used in code enforcement. • Modern developments, current literature and information sources regarding construction and design. • Customer service standards and protocols. • ADA requirements Skill in: • Performing plan reviews of architectural drawings and records. • Reading and interpreting complex building plans. • Reviewing energy calculations. • Coordination with utilities. • Maintenance of all public records for public examination. • Maintenance inspection of records and documentation on an automated data base. • Reading and interpreting blueprints and specifications. • Following verbal and written instructions and procedures. • Communicating effectively verbally and in writing. j • Dealing tactfully and courteously with the public. • Establishing and maintaining cooperative working relationships with supervisors, co-workers, property owners, business owners, building tenants, contractors, external public and private organizations and the general public. LICENSE AND CERTIFICATION REQUIREMENTS: A valid California State Driver's License is required. International Code Council Commercial Building Inspector. International Code Council Residential Building Inspector International Code Council Plans Examiner Must obtain Safety Assessment Program Inspector certificate within one year of hire. i PHYSICAL DEMANDS AND WORKING ENVIRONMENT: Work is performed in an outdoor work environment. May be exposed to dangerous machinery, extreme weather conditions and hazardous chemicals. May be required to climb ladders, work within confined spaces and/or trenches. i 1 i A Building Inspector Vernon CA 2 of 2 Attachment 6 Senior Electrical Inspector Job Description i QI v �r a 4��Vfty 1M�V• JOB DESCRIPTION Electrical Inspector, Senior Date Prepared:. DRAFT Class Code: 7213 SUMMARY: Under general supervision, enforces the National Electric and City of Vernon codes related to the installation of electrical equipment in new and existing buildings; examines, reviews, and performs higher level complex plan check review and inspections of buildings to ensure compliance with code regulations, local ordinances, and state and federal laws. DISTINGUSHING CHARACTERISTICS: The Senior Electrical Inspector is the advanced journey level classification within the Electrical Inspector series, responsible for performing the more specialized and complex work assigned to the series. Positions at this level possess a specialized expertise, are assigned tasks above the journey level, are the lead inspector in the series, and require the acquisition of Electrical certification and specialized certificates. ESSENTIAL FUNCTIONS: --Essential functions, as defined under the Americans with Disabilities Act, may include any of the following representative duties,knowledge, and skills. This is not a comprehensive listing of all functions and duties performed by incumbents of this class; employees may be assigned duties which are not listed below;reasonable accommodations will be made as required The job description does not constitute an employment agreement and is subject to change at any time by the employer. Essential duties and responsibilities may include, but are not limited to, the following: • Reviews construction plans and documents for residential, industrial, and commercial buildings and systems for code compliance to electrical requirements. • Reviews plans and construction work for proper installation methods and use of compliant materials. • Inspects work during various phases of construction for compliance; orders corrective action as necessary; prepares reports of inspections and completed work; approves compliant work. • Investigates code violations; posts "stop work" orders; prepares reports of findings. • Coordinates inspection activities with other City departments. • Performs occupancy, zoning, land use and code enforcement inspections; issues compliance orders and/or citations; prepares case logs; serves as a witness regarding appeals to enforcement cases. • Assists the public at the permit counter; provides general information; advises and interprets codes to the general public, contractors, engineers, architects and others as required; calculates fees and issues permits. • Coordinates construction progress with other City departments, divisions and/or external agencies. • Arranges, initiates, coordinates, and oversees special inspections and checks test results for conformance to specification requirements. • Performs calculations to assure proper sizing of systems. Reviews and examines materials delivered to job sites to ensure compliance with specifications and submittals. • Recommends revisions to existing and new regulations. • Maintains inspection records and documentation on an automated data base, • Maintains public records for public examination. • Arranges and conducts job site conferences with technical consultants, engineers, architects, representatives of client departments, equipment manufacturers and subcontractors to review project requirements. • Resolves field and office issues/problems regarding the application or interpretation of codes and regulations enforced by the division. • May provide work direction and training to less experienced staff. Electrical Inspector,Senior Vernon CA 1 of 2 • Attends various seminars and training courses for professional development. • Supports the relationship between the City of Vernon and the general public by demonstrating courteous and cooperative behavior when interacting with visitors and City staff; maintains confidentiality of work- related issues and City information; performs other duties as required or assigned. MINIMUM QUALIFICATIONS: Education, Training and Experience Guidelines: Associate Degree in Construction Management or a closely related field preferred;AND four years of electrical inspection and plan check experience. Knowledge of: • City organization, operations, policies, and procedures. • Methods, techniques and materials used in electrical construction of residential, industrial and commercial structures. • California Electrical Code. • California Energy Code. • CalGreen Building Code. • Plan reading for residential, industrial and commercial electrical systems. • General provisions of housing, building, and electrical codes and ordinances. • Methods of investigation used in code enforcement. • Modern developments, current literature and information sources regarding construction and design. • Customer service standards and protocols.ADA requirements Skill in: • Directing the work of other employees. • Reading and interpreting complex building and electrical plans. • Reviewing Energy calculations. • Reading and interpreting blueprints and specifications. • Following verbal and written instructions and procedures. • Communicating effectively verbally and in writing. • Dealing tactfully and courteously with the public.. • Coordination with utilities. • Maintenance of all public records for public examination. • Maintenance of inspection records and documentation on an automated data base. • Establishing and maintaining cooperative working relationships with supervisors, co-workers, property owners, business owners, building tenants, contractors, external public and private organizations and the general public. LICENSE AND CERTIFICATION REQUIREMENTS; A valid California State Driver's License and certification from the International Code Council as an Electrical Inspector and Electrical Code Plans Examiner is required. Must obtain Safety Assessment Program Inspector certificate within one year of hire. PHYSICAL DEMANDS AND WORKING ENVIRONMENT: Work is performed in an outdoor work environment. May be exposed to dangerous machinery, extreme weather conditions and hazardous chemicals. May be required to climb ladders, work within confined spaces and/or trenches. I Electrical Inspector,Senior Vernon CA 2 of 2 it Attachment 7 Senior Plumbing and Mechanical Inspector Job Description VLr 5 l �p `�vBLY IHOJ• JOB DESCRIPTION Plumbing and Mechanical Inspector, Senior Date Prepared: DRAFT Class Code: 7217 SUMMARY: Under general supervision, examines, reviews and performs higher level complex inspections of buildings to ensure compliance with building code regulations, local ordinances, and state and federal laws. DISTINGUSHING CHARACTERISTICS: The Senior Plumbing and Mechanical Inspector is the advanced journey level classification within the Plumbing and Mechanical Inspector series, responsible for performing the more specialized and complex work assigned to the series. Positions at this level possess a specialized expertise, are assigned tasks above the journey level, are the lead inspector in the series, and require the possession of Plumbing and Mechanical certification and specialized certificates. ESSENTIAL FUNCTIONS: --Essential functions, as defined under the Americans with Disabilities Act, may include any of the following representative duties,knowledge, and skills. This is not a comprehensive listing of all functions and duties performed by incumbents of this class; employees may be assigned duties which are not listed below;reasonable accommodations will be made as required. The job description does not constitute an employment agreement and is subject to change at any time by the employer. Essential duties and responsibilities may include, but are not limited to, the following,- Reviews construction plans and documents for residential, industrial, and commercial buildings and systems for code compliance to plumbing and mechanical requirements. • Reviews plans and construction work for proper installation methods and use of compliant materials. • Inspects work during various phases of construction for compliance; orders corrective action as necessary; prepares reports of inspections and completed work; approves compliant work. • Provides assistance to customers at the front counter, provides general information; advises and interprets codes to the general public, contractors, engineers, architects and others as required; calculates fees and issues permits. • Arranges, initiates, coordinates, and oversees special inspections and checks test results for conformance to specification requirements. • Reviews and approves the issuance of plumbing and mechanical development permits. • Investigates code violations; posts "stop work" orders; prepares reports of findings. • Performs calculations to assure proper sizing of systems. Reviews and examines materials delivered to job sites to ensure compliance with specifications and submittals. • Reviews and approves all industrial wastewater discharge permit applications; works with the Los Angeles County sanitation districts; maintains and manages a data base. • Coordinates with utilities and other departments. • Recommends revisions to existing and new regulations. • Performs occupancy, zoning, land use and code enforcement inspections; issues compliance orders and/or citations; prepares case logs; serves as a witness regarding appeals to enforcement cases. • Maintains all public records for public examination. • Maintains inspection records and documentation on an automated data base. • Arranges and conducts job site conferences with technical consultants, engineers, architects, representatives of client departments, equipment manufacturers and subcontractors to review project requirements. • Resolves field and office issues/problems regarding the application or interpretation of codes and regulations enforced by the division. Plumbing and Mechanical Inspector,Senior Vernon CA 1 of 2 • May provide work direction and training to less experienced staff, • Attends various seminars and training courses for professional development, • Supports the relationship between the City of Vernon and the general public by demonstrating courteous and cooperative behavior when interacting with visitors and City staff; maintains confidentiality of work- related issues and City information; performs other duties as required or assigned. MINIMUM QUALIFICATIONS: Education, Training and Experience Guidelines: Associate Degree in Architecture, Engineering, Construction Management or a closely related field preferred; AND four years of building, construction, plumbing, or mechanical, inspection experience. Knowledge of: • City organization, operations, policies, and procedures,. • Plan reading for residential, industrial and commercial plumbing and mechanical systems. • Building codes regarding plumbing, mechanical, building. • Methods, techniques and materials used in the design and construction of residential and commercial structures. • CalGreen building codes. • California Energy Code. • General provisions of housing, building and plumbing codes and ordinances. • Methods of investigation used in code enforcement.. • Modern developments, current literature and information sources regarding construction and design. • Customer service standards and protocols.ADA requirements Skill in: • Directing the work of other employees. • Performing plan reviews of architectural drawings and records. • Reading and interpreting building, plumbing and mechanical plans. • Reading and interpreting blueprints and specifications. • Reviewing energy calculations. • Following verbal and written instructions and procedures, • Communicating effectively verbally and in writing. • Dealing tactfully and courteously with the public. • Coordination with utilities. • Maintenance of all public records for public examination. • Maintenance of inspection records and documentation on an automated data base. • Establishing and maintaining cooperative working relationships with supervisors, co-workers, property owners, business owners, building tenants, contractors, external public and private organizations and the general public. LICENSE AND CERTIFICATION REQUIREMENTS: A valid California State Driver's License is required. International Code Council Plumbing Inspector UPC. International Code Council Mechanical Inspector UMC. ; ICC or IAMPO Plumbing and Mechanical Plans Examiner Must obtain Safety Assessment Program Inspector certificate within one year of hire. PHYSICAL DEMANDS AND WORKING ENVIRONMENT: Work is performed in an outdoor work environment. May be exposed to dangerous machinery, extreme weather conditions and hazardous chemicals. May be required to climb ladders, work within confined spaces and/or trenches, I Plumbing and Mechanical Inspector,Senior Vernon CA 2 of 2 I KIMCEIVED JUN 1 1 2015 ��:: �� CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator RE: Approval of Amendment No. 1 to the Vernon Police Officers Benefit Association 2014-2017 Memorandum Of Understanding to Add Police Corporal Lead Premium Pay Recommendations A. Find that approval of the proposed Amendment No. 1 to the Vernon Police Officers Benefit Association 2014-2017 Memorandum Of Understanding to Add Police Corporal Lead Premium Pay is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve and adopt the attached resolution approving Amendment No. 1 to the Vernon Police Officers Benefit Association 2014-2017 Memorandum of Understanding to add Article Three, Section 13 —Police Corporal Lead Premium Pay. C. Authorize the City Administrator and Director of Human Resources to execute the attached Amendment No. 1 to the 2014-2017 Memorandum of Understanding between the City of Vernon and employees represented by the City of Vernon Police Officers Benefit Association. Background The City and the City of Vernon Police Officers Benefit Association (VPOBA) concluded labor negotiations on August 13, 2014 regarding wages, benefits and working conditions for the 2014- 2017 Memorandum of Understanding(MOU). On May 5, 2015, as part of the Police Department's budget presentation, the Police Chief proposed the implementation of a Police Corporal Program as part of the department's goals for succession planning. The program is designed to help increase Police Officer's skills in leadership and managerial effectiveness through the development of effective communication, Page 1 of 2 strategic thinking and innovative ways to foster collaboration in local government. The Police Corporal Program Brochure and summary are attached herewith. On June 2, 2015, City Council approved the Police Corporal Program as part of the fiscal year 2015-2016 budget(Resolution No. 2015-31). i It is recommended that City Council approve Amendment No. 1 to the 2014-2017 VPOBA MOU to incorporate the approved 5% Police Corporal Lead Premium pay for a unit member appointed by the Police Chief to the assignment of Police Corporal. The 5% premium pay shall not be considered to be part of the employee's base salary when computing other incentive pay. Fiscal Impact The approximate cost of $30,000 to implement the Police Corporal Program is included in the 2015-2016 Police Department fiscal year budget. Attachment(s) 1. Police Corporal Program Brochure and Summary 2. Resolution Approving Amendment 1 to 2014-2017 VPOBA MOU Page 2 of 2 Attachment 1 Police Corporal Program Brochure and Summary CITY OF VERNON POLICE CORPORAL PROGRAM p�»ram.: .�U'. i.""'Z'r eF'. r,E. uzT�:ri a• a.m, ,`r_-a.'r`. '. y.xsMr`'•,ev.. 's,?rnw;,z.4' .. .. "k e'' .Gre�iY' tiaa�ev''a$` '.' .. VERNON POLICE DEPARTM FNT -- ------------------------ ti: * � f ' 4 .AM ` f '� � �_ / � / • � ® (� � q� _ � t w ,;ter'`'y. 4A - - - We will seek to ensure a sense of well-being in the community, guided by our commitment to working closely with our industrial population. We are dedicated to maintaining the highest degree of professionalism and ethi- cal standards in our pursuit of this mission, ever mindful of the need to safeguard the individual liberties of all members of the community. ........Daniel Calleros, Police Chief PREPARING THE NEXT GENERATION OF LEADERS The Police Corporal Program The City of Vernon Police Department Corporal Program is developed to _ _ ..�.. help increase Police Officer's skills in leadership and managerial effective- -go ness through the development of effective communication,strategic - thinking and innovative ways to foster collaboration in local government. The functions of a Police Corporal are similar to that of a Police Officer with additional duties to train and act as an assistant supervisor or lead in the absence of a Sergeant or higher-ranking police personnel. While par- ticipants,are normally assigned to a specific function,all functional areas of the law enforcement field, including investigation,administration and training are included. Positions in this class are occupied by sworn Police Officers. Officers may be assigned to work in uniform or plain clothes. • '" •• • • Shift schedules and job assignments may be changed periodically to en- .. • . .. sure the maximum delivery of effective police service. This class is distin- guished from Police Sergeant in that the latter is the first supervisor level in the sworn class series. Program Summary Under the general supervision of a Police Lieutenant or Police Sergeant • • •• • • • • " • the Police Corporal performs a wide variety of lead patrol and related du- ties involving the prevention of crime, the protection of life and property and the enforcement of laws and City ordinances; conducts investiga- tions, assists in the preparation of cases and testifies in court; serves in • • • •• • • specialized departmental roles as assigned; provides swift, skillful, profes- sional, responsive, and courteous police services; supervises civilian and • • , • • technical support staff. P s. VERNON POLICC DEPARTMENT CRQWD CONTROL KNOWLEDGE OF: • ! City,county,state and federal civil and criminal laws, regulations, • ' ' codes, and ordinances ' @ Duties, powers,authorities,and limitations of a Police Officer •• Tactics for deployment of law enforcement personnel and equipment • at crime scenes. -• • - T California criminal justice and court systems,and the principles of Grim- • • • - inal justice records management. • ,• • Basic law enforcement methods and procedures, including case laws ■ ■ governing arrest, rules of evidence, probable cause, use of force,Gusto- , dy of evidence and property, and search and seizure. SKILL IN: m Interpreting and applying laws and regulations, making decisions, main- taining composure,and working effectively under stressful conditions and emergency situations. 0 Supervising and leading staff,and delegating tasks and authority. • Assuming incident command responsibilities,and coordinating activities r = under emergency conditions. _ Io Effectively managing situations requiring diplomacy,fairness,firmness, and sound judgment. • Exercising controlled discretion and mediating difficult situations. f; a Remaining alert at all times,and reacting quickly and calmly in emergen- cy situations. • Working as a team member with other law enforcement and multi- jurisdictional agencies. ,+ • Establishing and maintaining cooperative working relationships with co- workers,and representatives from other regional agencies. ['ry- Preparing the i Next GenerationofLeaders • • NOW TO APPLY • Interested employees should complete an application • • • •. • • • packet in accordance with the Vernon Police Depart- merit recruitment procedures. Completed application packets will be reviewed and those who qualifications " • •• • •" • •- '• • •- meet the requirements of the program will be invited ' ' • • to participate in the Vernon Police Department selec ' tion/ranking process. T w. ©DMW "� 1 ds IF r r r- a Preparing the Next Generation of Leaders CITY OF VERNON POLICE DEPARTMENT 4305 Santa Fe Ave Vernon, Ca 90058 323-583-8811 www.cityofvernon.org POLICE CORPORAL PROGRAM Purpose The Police Corporal program is designed to increase Police Officer's skills in leadership and managerial effectiveness through the development of effective communication, strategic thinking, and innovative ways to foster collaboration in local government. The functions of a Police Corporal are similar to that of a Police Officer with additional duties to train and act as an assistant supervisor or lead in the absence of a Sergeant or higher-ranking police personnel. While participants are normally assigned to a specific function, all functional areas of the law enforcement field, including investigation, administration, and training are included. Police Corporals may be assigned to work in uniform or plain clothes. Shift schedules and job assignments may be changed periodically to ensure the maximum delivery of effective police service. This special assignment is distinguished from Police Sergeant in that the latter is the first supervisor level in the sworn class series. Program Summary Under the general supervision of a Police Lieutenant or Police Sergeant the Police Corporal performs a wide variety of lead patrol and related duties involving the prevention of crime, the protection of life and property and the enforcement of laws and City ordinances; conducts investigations, assists in the preparation of cases and testifies in court; serves in specialized departmental roles as assigned; provides swift, skillful,professional, responsive, and courteous police services; supervises civilian and technical support staff. In addition,the Police Corporal duties shall include, but are not limited to, serving as a mentor, and/or shift supervisor(and any related duties)under the direction of a Police Lieutenant or Police Sergeant. Police Corporals will be expected to take a leadership role in the development of patrol personnel and problem solving related to crime and quality of life issues in the community, while utilizing a Community Based Policing approach. Compensation Employees shall be entitled to a 5% Corporal Premium Pay of the employee's base monthly salary, excluding all other compensation. The 5% Corporal Premium Pay shall not be considered to be part of the employee's base salary when computing other incentive pays. Assignment The Police Corporal program is a special assignment, not a classified position. The City may authorize up to a maximum of four(4)Police Corporals at one time. For the initial selection process Police Corporals shall have their seniority set forth by their appointment date to the assignment and/or date of hire. After the initial selection process is completed, seniority will be set forth by date of assignment. Page I 1 At the department's discretion, four(4) Police Corporals may be assigned to the Patrol Division. If multiple in-house detectives are chosen during the initial selection to the Police Corporal program, only one in-house detective will remain in the current detective assignment as a Police Corporal. Management reserves the right to select which in-house detective will remain in the Detective Division. Once the initial Police Corporal Detective is selected, any remaining detective(s) selected for the program will be re-assigned from their respective detective assignment, unless the detective opts not to accept the Police Corporal assignment and wishes to remain in the Detective Unit. If this occurs,the detective will not be placed on the eligibility list and will be required to test for a future Police Corporal position. The detective re-assignment will occur as follows: The detective(s)having the longest tenure in the assignment will be re-assigned to the Patrol Division. If any detective assigned to an outside taskforce is selected for the Police Corporal program,he/she will be re-assigned to the Patrol Division. Officers assigned to the Police Corporal program will be removed from the eligible Field Training Officer(FTO) list. Qualifications and Examination Process Applicants for the Police Corporal program must have completed three (3) years of continuous service as a sworn Police Officer in a P.O.S.T. certified agency,with a minimum of one (1)year of service as a sworn Police Officer with the Vernon Police Department. Applicants must possess a valid Basic P.O.S.T. Certificate. The examination process for the Police Corporal program will be composed of two parts. Part 1 is an oral presentation exercise on a specified topic. Part 2 is an oral interview following the presentation exercise. The oral presentation and interview will be evaluated by an independent evaluation panel. Candidates must participate in all two parts of the Police Corporal examination in order to receive a final score on the examination process. For the purposes of establishing the eligibility list for this assignment,the components of the examination process will be weighted as follows: ■ Oral Presentation: 40% ■ Oral Interview: 60% A review of each candidate's performance evaluations for the past three years will also be reviewed by the Chief of Police as part of the selection process. For the initial selection process only,the first four(4) highest ranking applicants on the eligibility list will be offered a Police Corporal assignment. Applicants not selected for the program will remain on an eligibility list which will expire one year from the date that the list is established and be utilized to fill vacant positions that occur during that time period. The Chief of Police will select subsequent assignments at his discretion from active eligibility lists and will utilize the eligibility list to select a Police Corporal assignment based on the "Rule of 3,"which consists of the top three candidates with the highest overall score. Page 12 Assignment to the Police Corporal program is desirable, however not a requirement for appointment to the classification of Police Sergeant. Shift Selection Police Corporals will select their respective patrol shift every four(4)months consistent with how patrol shifts are currently selected. It is understood that at a minimum of one (1) Police Corporal will be assigned to each of the two patrol shifts. If there is a conflict regarding the shift selection among Police Corporals to uphold the minimum shift assignment, a Police Corporal will be placed in the shift selection according to their seniority level within the overall Police Corporal group. Limitations The Police Corporal assignment has no term limit; however, a Police Corporal may be removed from his/her assignment at the discretion of the Chief of Police for failure to meet the standards and expectations of the program. Police Corporals will be evaluated quarterly for the first year during the training process and upon successful completion will be evaluated annually, consistent with current policy and procedure for City employees. If at any time a Police Corporal is placed into a schedule as supervisor of a patrol shift absent a police sergeant and it is anticipated that a temporary vacancy of six (6) weeks or more will exist in a budgeted position, he/she will be entitled to additional compensation in accordance with City Personnel Rules related to an employee serving in a acting/interim role for a specified time period. The Chief of Police reserves the right to make changes to the Police Corporal program and assignment structure based on operational needs and availability of resources. Page 13 Attachment 2 Resolution Approving Amendment 1 to 2014-2017 VPOBA MOU RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING THE AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF VERNON AND THE VERNON POLICE OFFICERS' BENEFIT ASSOCIATION FOR THE PERIOD OF JULY 1, 2014 THROUGH JUNE 30, 2017 WHEREAS, the Vernon Police Officers' Benefit Association ("VPOBA" ) has been recognized as an employee organization pursuant to Resolution No. 4027; and WHEREAS, on September 16, 2014, the City Council of the City of Vernon adopted Resolution No. 2014-57 approving a Memorandum of Understanding ("MOU" ) setting forth certain terms and conditions for employment of City of Vernon employees in classifications represented by the VPOBA, for the period of July 1, 2014 through June 30, 2017; and WHEREAS, representative members of the VPOBA and the City have agreed to execute an Amendment No. 1 to the MOU (the "Amendment" ) relating to Police Corporal Lead Premium Pay; and WHEREAS, the City Council of the City of Vernon desires to approve the Amendment . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have an effect on the environment . SECTION 3 : The City Council of the City of Vernon hereby approves the Amendment No. 1 to the Memorandum of Understanding between the City of Vernon and the Vernon Police Officers' Benefit Association, in substantially the same form as attached hereto as Exhibit A. SECTION 4 : The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever action is deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any nonsubstantive changes to the Amendment attached herein. SECTION 5 : The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk' s designee, to send a fully executed MOU to Lorenzo Gaytan, President of the Vernon Police Officers' Benefit Association. 2 - SECTION 6 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name : Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Hema Patel, City ttorney 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 4 - EXHIBIT A t 5? I AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON POLICE OFFICERS BENEFIT ASSOCIATION July 1, 2014 through June 30, 2017 � r s AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON POLICE OFFICERS BENEFIT ASSOCIATION Parties to the Memorandum of Understanding Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the Government Code, and Resolution No. 4027, the Resolution for the administration of employer-employee relations, the matters within the scope of representation that are set forth in this Memorandum of Understanding (MOU) have been discussed by and between representatives of the City of Vernon and the representatives of the Vernon Police Officers Benefit Association (hereinafter "VPOBA") and except as otherwise specifically provided herein shall apply only to those defined in the aforesaid Resolution as "all full-time and regular part-time sworn personnel in the Police Department, except management employees." This Amendment to the MOU constitutes a joint agreement by the Municipal Employee Relations Representative ("MERR") and the VPOBA, to be submitted to the City Council of the City of Vernon for its determination and approval by one or more Resolutions or Ordinances as the City Council may deem fit and proper. The MERR and the Representative of the VPOBA have agreed that they will jointly urge the City Council of the City of Vernon to adopt one or more Resolutions or Ordinances reflecting the changes in wages, hours, and other conditions of employment agreed upon in this Amendment. If approved, the terms agreed upon by this Amendment to the MOU shall be deemed in effect as of July 1, 2014, and shall expire at midnight on June 30, 2017. IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN STATED, the VPOBA and the City of Vernon agree that Article Three, Section 13 is added to the MOU as follows: 1 ARTICLE THREE Section 13: Police Corporal Assignment-Lead Premium Pay At the discretion of the Police Chief, an employee who is assigned to the Police Corporal assignment shall be eligible to receive a five percent (5%) Police Corporal Lead Premium Pay effective July 1, 2015. The Police Corporal Lead Premium Pay shall be in accordance with the attached Police Corporal Program brochure and summary. The five percent (5%) premium shall not be considered to be part of the employee's base salary when computing other incentive pay. [Signatures Begin on Next Page]. i 2 SIGNATURE PAGE CITY OF VERNON VERNON POLICE OFFICERS BENEFIT ASSOC. Mark Whitworth Lorenzo Gaytan City Administrator/"MERR" President Teresa McAllister Gustavo Herrera Director of Human Resources Secretary Daniel Calleros Ignacio Estrada Police Chief Police Sergeant APPROVED AS TO FORM: Hema Patel City Attorney APPROVED AND ADOPTED BY THE CITY COUNCIL ON , PER RESOLUTION NO. ATTEST: Dated: Maria Ayala, City Clerk 3 ISO ,...� Ju1, 1 Gs�'EtY iM�J� l�c�-ERKS �tC� STAFF REPORT C CITY ADMINISTRATION DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator . ire RE: Approval of Amendment No. 1 to the Vernon men's Association 2014- 2016 Memorandum of Understanding to Add Apparatus, Equipment and Personal Protective Equipment (PPE) Premium Pay Recommendations A. Find that approval of the proposed Amendment No. 1 to the Vernon Firemen's Association 2014-2016 Memorandum of Understanding to add Apparatus, Equipment and Personal Protective Equipment (PPE) Premium Pay is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment.; and B. Approve and adopt the attached resolution approving Amendment No. 1 to the Vernon Firemen's Association 2014-2016 Memorandum of Understanding to add Article Three, Section 15 —Apparatus, Equipment and Personal Protective Equipment Premium Pay. C. Authorize the City Administrator and Director of Human Resources to execute the attached Amendment No. 1 to the 2014-2016 Memorandum of Understanding between the City of Vernon and employees represented by the City of Vernon Firemen's Association. Background The City and the City of Vernon Firemen's Association (VFA) concluded labor negotiations on December 8, 2014 regarding wages, benefits and working conditions for the 2014-2016 Memorandum of Understanding (MOU). It is recommended that City Council approve Amendment No. 1 to the MOU to incorporate past practice and current application of a 5% premium pay assigned to the Administrative Fire Captain to coordinate the maintenance of all Fire Department apparatus and equipment and to coordinate inspection, repair and replacement of all personal protective equipment (PPE) and Page 1 of 2 safety gear. The assignment of this additional complex task is at the discretion of the Fire Chief. In addition, the above task may be assigned to a Fire Captain on the 40-hour or 56-hour work week schedule. The 5% premium pay shall not be considered to be part of the employee's base salary when computing other incentive pay. Fiscal Impact There is no fiscal impact as the proposed amendment simply memorializes and clarifies an existing practice. Attachment(s) 1. Resolution Approving Amendment 1 to 2014-2016 VIA MOU I Page 2 of 2 i i RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING THE AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF VERNON AND THE VERNON FIREMEN' S ASSOCIATION FOR THE PERIOD OF JULY 1, 2014 THROUGH JUNE 30, 2016 WHEREAS, the Vernon Firemen' s Association (the "VFA") has been recognized as an employee organization pursuant to Resolution No. 4027; and WHEREAS, on December 16, 2014, the City Council of the City of Vernon adopted Resolution No. 2014-73 approving a Memorandum of Understanding ("MOU") setting forth certain terms and conditions for employment of City of Vernon employees in classifications represented by the VFA, for the period of July 1, 2014 through June 30, 2016; and WHEREAS, representative members of the VFA and the City have agreed to execute an Amendment No. 1 to the MOU (the "Amendment") relating to Personal Protective Equipment Premium Pay; and WHEREAS, the City Council of the City of Vernon desires to approve the Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have an effect on the environment . SECTION 3 : The City Council of the City of Vernon hereby approves the Amendment No. 1 to the Memorandum of Understanding between the City of Vernon and the Vernon Firemen' s Association, in substantially the same form as attached hereto as Exhibit A. SECTION 4 : The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever action is deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any nonsubstantive changes to the Amendment attached herein. SECTION 5 : The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk' s designee, to send a fully executed Amendment to Dean Richens, President of the Vernon Firemen' s i Association. 2 - SECTION 6 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name: Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Hema Patel, Cit ttorney - 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) 4 - EXHIBIT A Of 6M;y PORN 'oUNOED 05 � yc G%,ZLY 111SDt) AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON FIREMEN'S ASSOCIATION July 1, 2014 through June 30, 2016 AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON FIREMEN'S ASSOCIATION Parties to the Memorandum of Understanding Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the Government Code, and Resolution No. 4027, the Resolution for the administration of employer-employee relations, the matters within the scope of representation that are set forth in this Memorandum of Understanding (MOU) have been discussed by and between representatives of the City of Vernon and the representatives of the Vernon Firemen's Association (hereinafter"VFA") and except as otherwise specifically provided herein shall apply only to those defined in the aforesaid Resolution as "all full-time and regular part-time employees in the Fire Department except management employees." This Amendment to the MOU constitutes a joint agreement by the Municipal Employee Relations Representative ("MERR") and the VFA, to be submitted to the City Council of the City of Vernon for its determination and approval by one or more Resolutions or Ordinances as the City Council may deem fit and proper. The MERR and the Representative of the VFA have agreed that they will jointly urge the City Council of Vernon to adopt one or more Resolutions or Ordinances reflecting the changes in wages,hours, and other conditions of employment agreed upon in this Amendment. If approved, the terms agreed upon by this Amendment to the MOU shall be deemed in effect as of July 1, 2014, and shall expire at midnight on June 30, 2016. IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN STATED, the VFA and the City of Vernon agree that Article Three, Section 15 is added to the MOU as follows: 1 ARTICLE THREE Section 15: Apparatus,Equipment and Personal Protective Equipment(PPE) Premium Pay At the discretion of the Fire Chief, a Fire Captain who is assigned the additional duty to coordinate the maintenance of all Fire Department apparatus and equipment and to coordinate inspection, repair and replacement of all personal protective equipment (PPE) and safety gear shall be eligible to receive a five percent (5%) premium pay. This additional task may be assigned to a Fire Captain on the 40-hour or 56-hour work week schedule. The five percent (5%) premium shall not be considered to be part of the employee's base salary when computing other incentive pay. [Signatures Begin on Next Page]. 2 SIGNATURE PAGE CITY OF VERNON VERNON FIREMEN'S ASSOC. Mark Whitworth Dean Richens City Administrator/"MERR" President Teresa McAllister Todd Hewitt Director of Human Resources Vice-President Michael Wilson Fire Chief APPROVED AS TO FORM: Hema Patel City Attorney APPROVED AND ADOPTED BY THE CITY COUNCIL ON , PER RESOLUTION NO. ATTEST: Dated: Maria Ayala, City Clerk 3 STAFF REPORT CITY ADMINISTRATION DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrat r RE: Approval of Amendment No. 1 to the Vernon Fire Management Association 2014-2016 Memorandum Of Understanding to Add Administrative Fire Battalion Chief Premium Pay Recommendations A. Find that approval of the proposed Amendment No. 1 to the Vernon Fire Management Association 2014-2016 Memorandum Of Understanding to Add Administrative Fire Battalion Chief Premium Pay is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. B. Approve and adopt the attached resolution approving Amendment No. 1 to the Vernon Fire Management Association 2014-2016 Memorandum of Understanding to add Article Three, Section 15 —Administrative Fire Battalion Chief Premium Pay. C. Authorize the City Administrator and Director of Human Resources to execute the attached Amendment No. 1 to the 2014-16 Memorandum of Understanding between the City of Vernon and employees represented by the City of Vernon Fire Management Association. Background The City and the City of Vernon Fire Management Association (VFMA) concluded labor negotiations on May 6, 2014 regarding wages, benefits and working conditions for the 2014- 2016 Memorandum of Understanding(MOU). It is recommended that City Council approve Amendment No. 1 to the MOU to authorize the implementation of a 5% premium pay to a Fire Battalion Chief who is assigned at the discretion of the Fire Chief to a 40-hour administrative work week schedule. In addition, the proposed Amendment would authorize the Administrative Fire Battalion Chief to utilize a City owned vehicle and fuel in accordance with the City Owned Vehicle Authorization and Use Policy. Page 1 of 2 The 5% premium pay shall not be considered to be part of the employee's base salary when computing other incentive pay. Fiscal Impact The initial annual cost to implement the Administrative Battalion Chief assignment is approximately $42,000 and has been included in the fiscal year 2015-2016 Fire Department budget recently adopted by the City Council. In order to assign a Battalion Chief to administrative duty, a fourth Battalion Chief position would need to be filled through an internal promotional opportunity. The total cost reflected includes the costs associated with the promotion and the 5%premium pay. Attachment(s) 1. Resolution Approving Amendment 1 to 2014-2016 VFMA MOU Page 2 of 2 RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING THE AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF VERNON AND THE VERNON FIRE MANAGEMENT ASSOCIATION FOR THE PERIOD OF JULY 1, 2014 THROUGH JUNE 30, 2016 WHEREAS, the Vernon Fire Management Association ("VFMA" ) has been recognized as an employee organization pursuant to the City of Vernon Employer-Employee Relations Resolution (Resolution No. 4027) ; and WHEREAS, on July 15, 2014, the City Council of the City of Vernon adopted Resolution No. 2014-47 approving a Memorandum of Understanding ("MOU" ) setting forth certain terms and conditions for employment of City of Vernon employees in classifications represented by the VFMA, for the period of July 1, 2014 through June 30, 2016; and WHEREAS, representative members of the VFMA and the City have agreed to execute an Amendment No. 1 to the MOU (the "Amendment" ) relating to Administrative Fire Battalion Chief Premium Pay; and WHEREAS, the City Council of the City of Vernon desires to approve the Amendment . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have an effect on the environment. SECTION 3 : The City Council of the City of Vernon hereby approves the Amendment No. 1 to the Memorandum of Understanding between the City of Vernon and the Vernon Fire Management Association, in substantially the same form as attached hereto as Exhibit A. SECTION 4 : The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever action is deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any nonsubstantive changes to the Amendment attached herein. SECTION 5 : The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk' s designee, to send a fully executed Amendment to David Lazar, President of the Vernon Fire Management Association. - 2 - SECTION 6 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name: Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Hema Patel, Ci Attorney - 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) 4 - EXHIBIT A i nu AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON FIRE MANAGEMENT ASSOCIATION July 1, 2014 through June 30, 2016 AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF VERNON AND VERNON FIRE MANAGEMENT ASSOCIATION Parties to the Memorandum of Understanding Pursuant to Chapter 10 (section 3500 et seq) of Division 4, Title 1 of the Government Code, and Resolution No. 4027, the Resolution for the administration of employer-employee relations, the matters within the scope of representation that are set forth in this Memorandum of Understanding (MOU) have been discussed by and between representatives of the City of Vernon and the representatives of the Vernon Fire Management Association (hereinafter "VFMA") and except as otherwise specifically provided herein shall apply only to those defined in the aforesaid Resolution as "all full-time sworn and regular part-time employees in the Fire Department management and confidential employees," otherwise known as Chief Officers. This Amendment to the MOU constitutes a joint agreement by the Municipal Employee Relations Representative ("MERR") and the VFMA, to be submitted to the City Council of the City of Vernon for its determination and approval by one or more Resolutions or Ordinances as the City Council may deem fit and proper. The MERR and the Representative of the VFMA have agreed that they will jointly urge the City Council of the City of Vernon to adopt one or more Resolutions or Ordinances reflecting the changes in wages, hours, and other conditions of employment agreed upon in this Amendment. If approved, the terms agreed upon by this Amendment to the MOU shall be deemed in effect as of July 1, 2014, and shall expire at midnight on June 30, 2016. IN CONSIDERATION OF THE TERMS AND CONDITIONS HEREIN STATED, the VFMA and the City of Vernon agree that Article Three, Section 15 is added to the MOU as follows: 1 ARTICLE THREE Section 15• Administrative Fire Battalion Chief Premium Pay At the discretion of the Fire Chief, an Administrative Fire Battalion Chief who is assigned to the 40-hour work week schedule shall receive a five percent (5%) premium pay. The Administrative Fire Battalion Chief shall also be eligible to utilize a City owned vehicle and fuel in accordance with the City Owned Vehicle Authorization and Use Policy. Please refer to the Citywide Fringe Benefit and Salary Resolution, Section 11, Automobile Allowance and reimbursement for Expenses. The five percent (5%) premium shall not be considered to be part of the employee's base salary when computing other incentive pay. [Signatures Begin on Next Page]. 2 SIGNATURE PAGE CITY OF VERNON VERNON FIRE MANAGEMENT ASSOC. Mark Whitworth David Lazar City Administrator/"MERR" President Teresa McAllister David Kimes Director of Human Resources Vice-President Michael Wilson Andrew Guth Fire Chief Secretary/Treasurer APPROVED AS TO FORM: Hema Patel City Attorney APPROVED AND ADOPTED BY THE CITY COUNCIL ON , PER RESOLUTION NO. ATTEST: Dated: Maria Ayala, City Clerk 3 G��f[Y'INDV44 MID STAFF REPORT CITY ADMINISTRATION - IT DIVISION DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator Originator: Ernesto Smith, IT Manager RE: Authorization to Issue Additional Purchase Orders to Tyler Technologies, Inc. for Fiscal Year 2014-2015. Recommendation A. Find that the approval of additional Purchase Orders for Tyler Technologies, Inc. is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Authorize the issuance of$40,000 in additional Purchase Orders to Tyler Technologies, Inc. in fiscal year 2014-2015 for the following. The issuance of said Purchase Orders is exempt from competitive bidding and competitive selection under the sole source exemption outlined in Section 2.17.12(A)(2) of the Vernon Municipal Code. 1. Customization needed for the Tyler Cashiering Software used by the Finance Department at a cost not to exceed $10,000 2. Customization of reports/forms used by Public Works and Fire Departments at a cost not to exceed $15,000 3. Payment of outstanding invoices at a cost of approximately$15,000 Background The IT Division needs to obtain customization for the Tyler Cashiering Software used by the Finance Department to process customer payments. Customization is also necessary for reports/forms used by the Public Works and Fire Departments. Customization services are only available from Tyler Technologies, Inc. ("Tyler") as the software is their proprietary software. Additionally, the IT Division is requesting approval of an additional Purchase Order to pay outstanding invoices for work performed by Tyler. The initial Purchase Orders issued neglected to account for the reimbursement of authorized travel expenses incurred by the vendor. Page 1 of 2 Pursuant to Section 2,17.12(A)(2) of the Vernon Municipal Code, the Purchase Orders requested herein are exempt from competitive bidding and competitive selection as these services can only be obtained from one vendor. Additionally, Section 2.17,02(B) of the Vernon Municipal Code requires City Council approval of payments to vendors if, in the 12 months preceding the payments, the City has paid or awarded the subject vendor more than $100,000. In the past 12 months, the City has issued a total of approximately$158,300 in payments to Tyler. As such, Council approval is required for any additional payments to Tyler, including those requested herein. Fiscal Impact Sufficient funds were allocated and are available in the fiscal year 2014-201 S IT budget for the Purchase Orders requested herein. Attachment(s) None Page 2 of 2 tip15 5 JllCIY LN¢�' STAFF REPORT CITY ADMINISTRATION - IT DIVISION DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator Originator: Ernesto Smith, IT Manager RE: Authorize the Issuance of an Open Purchase Order to Insight Public Sector for Fiscal Year 2014-2015 for the Purchase of Various IT Equipment Recommendation A. Find that approval of an open Purchase Order for the purchase of IT related equipment from Insight Public Sector is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Authorize the issuance of an open Purchase Order to Insight Public Sector in an amount not to exceed $130,000 for fiscal year 2014-2015 for the purchase of various IT related equipment. Background The IT Division is in need of additional VMware Software Licenses, new network sewers, and renewal of server maintenance support agreements for City Hall and Police Department servers. VMware is a server consolidation software that allows multiple physical servers to be consolidated into virtual servers, reducing power consumption, server rack space, and the number of physical servers needed. The additional VMware Software Licenses are needed for the new servers that the IT Division will be purchasing. The new network servers are needed to consolidate and replace existing servers for Utility Billing, the Police Department, and City Hall. Renewal of the server maintenance support agreements is necessary for hardware and software support of City Hall and Police Department servers. The maintenance agreements would allow IT staff to contact vendors for any software or hardware issues with equipment. For the past several years, Insight Public Sector ("Insight") has frequently provided the most favorable pricing to the City, among all quotes, proposals, or bids received pursuant to the City's Purchasing requirements, for various and numerous IT related purchases. As such, IT staff is Page 1 of 2 requesting approval to issue an open Purchase Order to Insight at a not to exceed amount of $130,000, Section 2.17.02(A) of the Vernon Municipal Code requires City Council approval of Purchase Orders that exceed $100,000, The purchases made under the open Purchase Order would still be subject to the City's Competitive Bidding and Purchasing Ordinance and staff would comply with all applicable requirements when making purchases through the open Purchase Order. Fiscal Impact Sufficient funds were allocated and are available in the fiscal year 2014-2015 IT budget for the open Purchase Order requested herein. Attachment(s) None i I Page 2 of 2 ® tio�5 -PELT INCJ't RECEIVED J�N 1 S��Cti STAFF REPORT Sul a 2015 Finance Department CITY ADM ATION DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: William Fox, Finance Director " I RE- Approval of the Investment Policy for Fiscal Year 2015-2016 Recommendation It is recommended that the City Council: A. Find that approval of the investment policy for Fiscal Year 2015-2016 is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve a resolution approving the Annual Statement of Investment Policy for Fiscal Year 2015-2016. The investment policy requires an annual approval by City Council even though no changes and updates are being proposed this year. Such approval is performed annually through the review of any updates and reaffirming the investment policy in effect. Background The Annual Statement of Investment Policy sets forth the course of action necessary to guide the decision-making of the City Council, City Treasurer, and those authorized to make investment decisions in the administration of the City's investment portfolio. The existing policy is in compliance with the California Government Code and is a restatement of relevant sections applying to investment activities. The policy is designed to ensure that the administration of surplus funds is performed in accordance with the "prudent investor standard" pursuant to California Government Code Section 53600.3. As such capital preservation is of paramount importance and that no speculative activities are entered into. Fiscal Impact There is no direct fiscal impact by the approval of the investment policy resolution. The investment policy provides the framework to ensure sound investment practices are being followed in compliance with California Government Code. Attachment 1: Annual Statement of Investment Policy WF/JL RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ADOPTING AN ANNUAL STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2015-2016 AND DELEGATING INVESTMENT AUTHORITY TO THE FINANCE DIRECTOR/CITY TREASURER WHEREAS, pursuant to California Government Code Section 53646 (a) (2) , the City Treasurer may annually render to the City Council an Annual Statement of Investment Policy which the City Council shall consider at a public meeting; and WHEREAS, pursuant to Resolution No. 2014-38, the City Council approved the Annual Statement of Investment Policy for fiscal year 2014-2015 which delegated investment authority to the City Treasurer, and granted the City Treasurer express authority, as limited by Section 5 . 1 of the Policy, to make investments of City funds in securities with a term, or term remaining to maturity at the time of investment, in excess of five years, as part of an investment program; and WHEREAS, the City has continued to follow the Annual Statement of Investment Policy approved by Resolution No. 2014-38; and WHEREAS, the City Council desires to approve a new Annual Statement of Investment Policy for fiscal year 2015-2016 . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon hereby finds that approval of the Investment Policy is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have a significant effect on the environment. SECTION 3 : The City Council of the City of Vernon hereby adopts the Annual Statement of Investment Policy (the "Investment Policy" ) , for fiscal year 2015-2016, a copy of which is attached hereto as Exhibit A. SECTION 4 : The City Council of the City of Vernon hereby delegates to the Finance Director/City Treasurer, or to his authorized designee, the authority to implement the Investment Policy and select the instruments for the City' s investment portfolio in accordance with the Investment Policy. SECTION 5 : The City Council of the City of Vernon hereby grants, as part of the City' s investment program, to the Finance Director/City Treasurer, and to his authorized designee, express authority, as limited by Section 5 . 1 of the Policy, to invest in securities with a term, or term remaining to maturity, at the time of investment, in excess of five years, and, consistent with Government Code 53601, this authority shall become effective on September 17, 2014 . SECTION 6 : If any section or part of this Resolution is found to be unenforceable by operation of law, the remaining sections or parts of this Resolution shall be in full force and effect. SECTION 7 : This Resolution shall become effective immediately. 2 - SECTION 8 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name: Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: !i� '�"' &X—r-/ Brian W. Byun, Deput City Attorney - 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) 4 - EXHIBIT A CITY OF VERNON Of VEEP G~ ` L t 4 Gs�i'EtY 11NQJ ANNUAL STATEMENT OF INVESTMENT POLICY William F. Fox Finance Director / City Treasurer June 2015 0.0 PREFACE This Annual Statement of Investment Policy(the "Investment Policy") sets forth the course of action necessary to guide the decision-making of the City Council, and to the extent authorized under Section 4.0 hereof, City Treasurer and all persons authorized to make investment decisions on behalf of the City of Vernon(the"City") in the administration of the City's investment portfolio. While some portions of this Investment Policy are a restatement of the laws of the State of California(the"State"), it is viewed that these restatements are integral to the purpose and flow of this Investment Policy. In most instances the use of future tense throughout this Investment Policy is intended to mean a continued practice or a practice which shall be continued. The following statements are intended to ensure the achievement of the purpose, the goals and objectives in an orderly and accurate manner. However, there is no guarantee that problems, errors or losses will not arise in the course of administering the investment of idle or surplus funds. Among the obstacles and deterrents in achieving the goals and objectives of the portfolio are: unforeseen national or international events or crises, deviation of actual cash flow from forecasted cash flow, unforeseen demands on cash flow,policies made with regard to investment in local depositories, errors in data or advice used to make decisions, as well as any other unanticipated event that may have an effect on local, national or international financial markets, economies or politics which in turn has a decided effect upon the portfolio. This Investment Policy is designed to achieve,keeping in mind the obstacles and deterrents in pursuing portfolio goals and objective, the safety of the principal of all City funds, consistent with limited risk and prudent investment practices. 1.0 SCOPE This Investment Policy governs the deposit, safekeeping and investment of the funds of the Treasury, as well as all related transactions and investment activities. The investment of bond proceeds and amounts held under indentures and other security agreements with respect to bonds as provided in Section 6.12 will be governed by the provisions of the relevant bond documents. 2.0 PURPOSE The purpose of the Investment Policy is to facilitate accomplishment of the goals and objectives of the Treasurer with regard to the investment of surplus funds (funds not required for the immediate needs of the City), to provide a framework within which to carry out the business of administering and investing the surplus funds of the Treasury, and to improve communications at all levels between those involved and those interested in the process of investing and administering the surplus funds of the Treasury. - 1 - I 3.0 OBJECTIVE 3.1 Leual Compliance All investments shall be made in accordance with this Investment Policy, California Government Code Section 53600 et seq., and any forthcoming amendments or additions to the California Government Code in relation to the investment of local agency surplus funds. 3.2 Prudence The administration of surplus funds of the City Treasurer, as a fiduciary trustee, shall be performed in accordance with the prudent investor standard pursuant to California Government Code Section 53600.3. The City Treasurer and the City Council of the City, including the Finance Committee, and all persons authorized to make investment decisions on behalf of the City are "trustees" and therefore fiduciaries subject to the prudent investor standard. When investing,reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee of the City shall act with care, skill,prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City,that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and satisfy the liquidity needs of the City. Within the limitations of this Investment Policy and Section 53600.3 of the California Government Code and considering individual investments as part to an overall strategy, the City Treasurer and all persons authorized to make investment decisions on behalf of the City are authorized to acquire investments as authorized by law. As prudence shall be applied in the context of portfolio management, investment officers and their advisors, acting in accordance with written procedures and exercising due diligence, shall report deviations from expectation in an individual security's performance to the Treasurer in a timely fashion evaluate and appropriate action to be taken to control adverse developments. 3.3 Investment Criteria Goals The Treasurer's primary goals for the investment of surplus funds (in the City's Treasury or monies in a sinking fund) are, in order of priority pursuant to California Government Code Section 53600.5: 3.3.1 Safety-- Safety of capital shall mean the safeguarding of capital through the selection of investments and investing procedures to best protect against loss, whether arising from various investment risks (such as interest rate risk, market risk, counterparty risk, etc.) or from default, fraud, or error. 3.3.2 Liquidity--The City's portfolio shall be invested so as to always have the ability to convert sufficient securities in the portfolio to cash, with little or no loss in value, to cover cash flow needs of the City to meet contingency needs. - 2 - 3.3.3 Yield--Yield refers to earning a reasonable rate of return and shall take into consideration current market conditions, the present phase of the market cycle, both present and future cash flow needs, and the other primary goals of Safety and Liquidity. 3.4 Performance Measurement The investment portfolio will be managed in accordance with the parameters specified within this Investment Policy. The methods of measuring investment performance and performance benchmarks shall be articulated in the internal policies of the City Treasurer's Department. 3.5 Maintenance of Public Trust As the Treasurer has been entrusted with the safekeeping of public monies received from all sources, the Treasurer, in managing the investment portfolio, shall exercise a high degree of professionalism to ensure and sustain public confidence, remembering that both the investment instruments and the methods of transacting investment business are subject to public review and scrutiny. 4.0 DELEGATION OF AUTHORITY The management responsibility for the City's investment program is hereby delegated to the City Treasurer in accordance with California Government Code Section 53607. Pursuant to California Government Code Sections 53601, the City Treasurer shall be responsible for the investment of the City's funds (including the purchase, sale, or exchange of securities), the monitoring and reviewing of all investments for consistency under this Investment Policy, and the establishment of a system of controls to regulate the activities of subordinate officials. The Treasurer shall have the responsibility to execute investment transactions on a day to day basis. When circumstances warrant, the responsibility to execute investment transactions may be delegated to the Deputy City Treasurer or to the City Treasurer's authorized designee. However, each and every transaction must be approved by the City Treasurer. Any persons authorized to make investment decisions on behalf of the City, shall be subject to daily oversight and monitoring by the City Treasurer or the Treasurer's Office in order to insure full and complete compliance with this Investment Policy and the Government Code of the State of California, relating to the deposit and investment of funds and local agency finances. NO PERSON MAY ENGAGE IN AN INVESTMENT TRANSACTION EXCEPT AS PROVIDED UNDER THE LIMITS OF THIS POLICY. - 3 - 5.0 INVESTMENT PROGRAM 5.1 Investment in Long Term Securities The City Treasurer and the authorized designees of the City Treasurer shall actively manage the City's portfolio of investments in order to take advantage of changing economic conditions and to insure that the liquidity needs of the City are satisfied. As part of the City's investment program,the City Treasurer has the express authority to make investments in securities that have a term, or a term remaining to maturity, at the time of investment, in excess of five years, as long as such investments, taken in the aggregate in relation to the City's entire investment portfolio, do not adversely impact the ability to satisfy the liquidity needs of the City and its funds and enterprises. Notwithstanding anything contained in this Investment Policy to the contrary, it is the policy of the City to limit the investment of money in the Light and Power Department Fund, including operating,reserve and surplus funds, in an amount up to one hundred million dollars ($100,000,000), to investments otherwise permitted for such Fund under this Investment Policy which mature no later than five years from the time of such investment. 5.2 Active Portfolio Management The City Treasurer has the express authority to sell, as he deems prudent, any securities in the City's portfolio of investments prior to the maturity date of the particular security. The City Treasurer has the express authority to invest in, as he deems prudent, any security authorized by this Investment Policy with the objective of selling that same security prior to its maturity date. The City Treasurer's authority to buy and sell securities for investment on behalf of the City includes the authorization to buy and sell the same security on the same trading day. 6.0 INSTRUMENTS AUTHORIZED FOR INVESTMENT The City,having money in a sinking fund of, or surplus money in, its treasury not required for the immediate needs of the City may invest any portion of the money that it deems wise or expedient in those investments set forth below. If the City purchases or obtains any securities prescribed in this Section 6.0, in a negotiable, bearer, registered, or nonregistered format, the City shall require delivery of the securities to the City, including those purchased for the City by financial advisors, consultants, or managers using the City's funds,by book entry,physical delivery, or by third party custodial agreement. The transfer of securities to the Counterparty bank's customer book entry account may be used for book entry delivery. For purposes of this Section 6.0, "Counterparty" means the other party to the transaction. A Counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the City. Investments may be made in any security authorized by this Section 6, and by Section 53601 of the California Government Code, that has at the time of investment, a term, or a term remaining to maturity, in excess of five years, as long as such investment comports with the policies and objectives of this Investment Policy and the provisions of the California Government Code. - 1 - 6.1 Bonds Issued by the City Bonds issued by the City, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City. 6.2 United States Treasury Bonds United States Treasury notes,bonds,bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. 6.3 Bonds of the State of California Registered State warrants or treasury notes or bonds of the State, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State. 6.4 Bonds of State of California Local Agencies Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency,or by a department, board, agency, or authority of the local agency. 6.5 Obligations Issued by Federal Agency or United States Government- Sponsored Enterprises Federal agency or United States government-sponsored enterprise obligations,participations, or other instruments, issued by, or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. 6.6 Bills of Exchange Bankers' acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of bankers' acceptances may not exceed 180 days maturity or 40 percent of the City's surplus money that may be invested pursuant to this Section 6. However, no more than 30 percent of the City's money may be invested in the bankers' acceptances of any one commercial bank pursuant to this Investment Policy. 6.7 Commercial Paper Commercial paper of"prime" quality of the highest ranking or of the highest letter and numerical rating as provided for by Moody's Investors Service, Inc. ("Moody's"), or the Standard & Poor's Corporation("S&P") or Fitch Financial Services, Inc. ("Fitch"). The corporation that issues the - 2 - commercial paper shall be organized and operating within the United States, shall have total assets in excess of five hundred million dollars ($500,000,000) and shall issue debt, other than commercial paper, if any, that is rated "A" or higher by Moody's, S&P or Fitch. Eligible commercial paper shall have a maximum maturity of 270 days or less. The City may invest no more than 25% of its money in eligible commercial paper. The City may purchase no more than 10 percent of the outstanding commercial paper of any single corporate issue. 6.8 Negotiable Certificates of Deposit Negotiable certificates of deposit issued by a nationally or state-chartered bank, savings association or a federal association(as defined by Section 5102 of the California Financial Code), a state or federal credit union, or by a state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30 percent of the City's money which may be invested pursuant to this Investment Policy. For purposes of this Section 6.8,negotiable certificates of deposit do not come within Article 2 of the California Government Code (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of California Government Code Section 53638 concerning maximum deposits. The City Council of the City and the City Treasurer or other official of the City having legal custody of the money are prohibited from investing City funds, or funds in the custody of the City,in negotiable certificates of deposit issued by a state or federal credit union if a member of the City Council of the City, or any person with investment decision making authority in the City Administrator's Office, Budget-Auditor's Office, Treasurer's Office or Finance Department of the City, also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. 6.9 Repurchase,Reverse Repurchase and Securities Lending Agreements 6.9.1 Investments in repurchase agreements or reverse repurchase agreements or securities lending agreements of any securities authorized by this Section 6, as long as the agreements are subject to this Section 6.9, including, the delivery requirements specified in this Section 6.9. 6.9.2 Investments in repurchase agreements may be made, on any investment authorized in Section 6, when the term of the agreement does not exceed one year. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. 6.9.3 Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: - 3 - 6.9.3.1 The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the City for a minimum of 30 days prior to sale. 6.9.3.2 The total of all reverse repurchase agreements and securities lending agreements on investments owned by the City does not exceed 20 percent of the base value of the portfolio. 6.9.3.3 The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. 6.9.3.4 Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than the maturity of the reverse repurchase agreement or securities lending agreement. 6.9.4 Investments in reverse repurchase agreements, securities lending agreements or similar investments in which the City sells securities prior to purchase with a simultaneous agreement to repurchase the security, may only be made upon prior approval of the City Council of the City and shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state- chartered bank that has or has had a significant banking relationship with the City. 6.9.4.1 For purposes of this Section 6.9, "significant banking relationship"means any of the following activities of a bank: 6.9.4.1.1 Involvement in the creation, sale, purchase, or retirement of the City's bonds, warrants, notes, or other evidence of indebtedness. 6.9.4.1.2 Financing of the City's activities. 6.9.4.1.3 Acceptance of the City's securities or funds as deposits. 6.9.5 Definitions 6.9.5.1 Repurchase Agreement Repurchase Agreement means a purchase of securities by the City pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the City by book - 4 - entry,physical delivery, or by third party custodial agreement. The transfer of underlying securities to the counterparty bank's customer book- entry account may be used for book-entry delivery. 6.9.5.2 Securities Securities mean securities of the same issuer, description, issue date, and maturity. 6.9.5.3 Reverse Repurchase Agreement Reverse Repurchase Agreement means a sale of securities by the City pursuant to an agreement by which the City will repurchase the securities on or before a specified date and includes other comparable agreements. 6.9.5.4 Securities Lending Agreement Securities Lending Agreement means an agreement under which the City agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the City. During the term of the agreement,both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the City in return for the collateral. 6.9.5.5 Base Value Base Value of the City's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements or other similar borrowing methods. 6.9.5.6 Spread Spread means the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds. 6.10 Medium-Term Notes Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this Section 6.10 shall be rated "A" or better by a nationally recognized rating service. Purchases of medium- term notes shall not include other instruments authorized by Section 6 and may not exceed 30 percent of the City's surplus money which may be invested. - 5 - 6.11 Diversified Management Company Shares 6.11.1 Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by Sections 6.1 to 6.10, inclusive, or Sections 6.13 or 6.14 and that comply with the investment restrictions of Article 1 (commencing with Section 53600 of the California Government Code) and Article 2 (commencing with Section 53630 of the California Government Code). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement may be 100 percent of the sales price if the securities are marked to market daily. 6.11.2 Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). 6.11.3 If investment is in shares issued pursuant to Section 6.11.1, the company shall have met either of the following criteria: 6.11.3.1 Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or 6.11.3.2 Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by Sections 6.1 to 6.10, inclusive, or Sections 6.13 or 6.14 and with assets under management in excess of five hundred million dollars ($500,000,000). 6.11.4 If investment is in shares issued pursuant to Section 6.11.2, the company shall have met either of the following criteria: 6.11.4.1 Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or 6.11.4.2 Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). - 6 - 6.11.5 The purchase price of shares of beneficial interest purchased pursuant to this Section 6.11 shall not include any commission that the companies may charge and shall not exceed 20 percent of the City's surplus money that may be invested pursuant to this Section 6. However, no more than 10 percent of the City's surplus funds may be invested in shares of beneficial interest of any one mutual fund pursuant to Section 6.11.1. 6.12 Moneys Pledged to Payment or Security of Bonds of the City Moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of the City, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements,may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the City providing for the issuance. 6.13 Bonds Secured by Government Code Section 53651 Eligible Securities Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 of the California Government Code as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 of the California Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted. 6.14 Mortgage Pass-Through Security Any Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond, in each case, of a maximum of five years maturity. Securities eligible for investment under this Section 6.14 shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by a nationally recognized rating service and rated in a rating category of"AA" or its equivalent or better by a nationally recognized rating service. Purchase of securities authorized by this Section 6.14 may not exceed 20 percent of the City's surplus money that may be invested pursuant to Section 6. 7.0 DESIGNATED ENTITIES FROM WHOM THE CITY MAY PURCHASE AUTHORIZED INVESTMENTS The purchase by the City of any investment authorized pursuant to California Government Code Sections 53601 or 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the - 7 - California Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or federal association(as defined by Section 5102 of the California Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank. 8.0 PROHIBITED INVESTMENTS 8.1 The City shall not invest any funds pursuant to this Investment Policy or pursuant to California Government Code, Article 2, Deposit of Funds (commencing with Section 53630) in inverse floats, range notes, or mortgage-derived, interest-only strips. 8.2 The City shall not invest any funds pursuant to this Investment Policy or pursuant to California Government Code, Article 2, Deposit of Funds (commencing with Section 53630) in any security that could result in zero interest accrual if held to maturity. However, the City may hold prohibited instruments currently owned by the City until their maturity dates. The limitation in this Section 8.2 shall not apply to City investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, and following) that are authorized for investment pursuant to Section 6.11. 9.0 STATEMENTS OF INVESTMENT ACTIVITIES 9.1 Annual Statement of Investment Policy The City Treasurer shall annually render to the City Council and the Finance Committee of the City a statement of investment policy, which the City shall consider at a public meeting. Any changes in the investment policy shall also be considered by the City Council of the City at a public meeting. 9.2 Quarterly Report of Investments The City Treasurer shall render a quarterly report to the Finance Committee of the City and City Council. The quarterly report shall be so submitted within 30 days following the end of the quarter covered by the report. This report shall include the type of investment, issuer, date of maturity par and dollar amount invested on all securities, investments and moneys held by the City and shall additionally include a description of any of the City's funds, investments, or programs that are under the management of contracted parties, including lending programs. With respect to all securities held by the City and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund,the report shall also include a current market value as of the date of the report, and shall include the source of this same valuation. For local agency investments that have been placed in the State of California Local Agency Investment Fund, in National Credit Union Share Insurance Fund-insured accounts in a credit union, in accounts insured or guaranteed pursuant to Section 14858 of the California Financial Code, or in Federal Deposit Insurance Corporation-insured accounts in a bank or savings and - 8 - loan association, in a California County investment pool, or any combination of these, the City Treasurer and the Treasurer's Department may supply to the City Council and Finance Committee the most recent statements received by the City from these institutions. The quarterly report shall state compliance of the portfolio to this Investment Policy, or the manner in which the portfolio is not in compliance. The quarterly report shall include a statement denoting the ability of the City to meet its budgeted expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available. In the quarterly report, a subsidiary ledger of investments may be used in accordance with accepted accounting practices. 9.3 Monthly Investment Transaction Report The authority of the City Council to invest or to reinvest funds of the City, or to sell or exchange securities so purchased has been delegated for a one-year period by the City Council to the City Treasurer, who shall thereafter assume full responsibility for those transactions and shall make a timely monthly report of those transactions to the City Council. 10.0 CONFLICT OF INTEREST No City employee shall, outside of regular working hours, engage in any professions, trade, business or occupation which is incompatible or involves a conflict of interest with his/her duties as a City Officer or employee. 11.0 PUBLIC INQUIRY The City Treasurer's portfolio and related transactions are a matter of public record. Any member of the public may receive a copy of the portfolio or this Investment Policy by requesting a copy at the Treasurer's Office. The Treasurer may charge a fee for the copy, as allowed by law. 12.0 ANALYSIS OF PROSPECTIVE INVESTMENTS Due to the complexity of the various investment instruments available and uncertainty of market conditions the Treasurer may seek professional advice in making investment decisions in order to optimize investment selections. 13.0 SAFEKEEPING As required by California Government Code Section 53601 all investment instruments in a negotiable, bearer, registered, or nonregistered format, shall be delivered to the City's custodial bank by using book entry or physical delivery. The "delivery vs. payment" purchase procedure shall be used. The City's custodial bank for safekeeping of the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the City is invested pursuant to this policy shall be one of the following: (a) a federal or state - 9 - association(as defined by Section 5102 of the Financial Code), (b) a trust company or a state or national bank located within California, (c) the Federal Reserve Bank of San Francisco or any branch thereof within California, (d) any Federal Reserve Bank, or(e)with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System. 14.0 BROKER/DEALER AND DEPOSITORY INSTITUTION RELATIONSHIPS 14.1 Approved List of Broker/Dealer Institutions Subject to Section 7.0, the City Treasurer shall approve and maintain a list of broker/dealers and depository institutions authorized to provide investment and other services to the City. All investments must be made with institutions that have been approved by the City Treasurer prior to investing. 14.2 Broker/Dealer Commissions and Fees Chargeable to the City All broker/dealers who transact with the City and buy and sell securities on the City's behalf shall earn a commission or charge a fee not to exceed an amount deemed prudent and reasonable by the Financial Industry Regulatory Authority("FINRA") and what is customary in the industry for the types of securities being purchased by the City. 14.3 Deposit and Investment of Funds of the City All depository institutions that do business with the City shall be in compliance with the requirements of Article 2, commencing with Section 53630, of the Government Code of the State of California, concerning the deposit of funds, including the overall creditworthiness and credit ratings requirements of the sections of that Article. - 10 - .r` ��P ` LY IN�V�� JUN 11 2015 STAFF REPORT CITY ADMINISTRATION Finance Department DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: William Fox, Finance Director � J RE: Approval of Resolution for Issuance of 2015 Electric System Revenue Bonds Recommendation A. Find that approval of the resolution to issue 2015 Electric System Revenue Bonds is exempt under the California Environmental Quality Act (CEQA) in accordance with Sections 15060(c)(3), 15378(b)(4), and 15378(b)(5) because the activity approved by the Resolution relating to the refinancing or funding of previously-approved projects will not result in direct or indirect physical changes in the environment and, therefore, is not a "project," as defined in Section 15378 of the CEQA Guidelines; and B. Approval of a resolution for the issuance of 2015 Electric System Revenue Taxable Series A Bonds in the par amount of $110.3 million to provide funds to (a) refund a portion of the City's outstanding 2009 Series A Electric System Revenue Bonds (b) finance costs of terminating two existing swap agreements by reimbursement of certain capital improvements from the electric system previously paid from the Light & Power Fund, (c) fund a deposit to the Debt Service Reserve Fund, and (d) pay cost of issuance of the 2015 Series Bonds. The resolution provides for flexibility to accommodate interest rate fluctuations that would impact market conditions Background In a review of the City's electric system debt profile, it was identified there was an opportunity to undertake a refunding effort of a portion of the 2009 Series A bonds. The result of this refunding effort will provide immediate rate relief for electricity customers through 2023 and also reduce financial volatility being caused by the two existing interest rate swap agreements. On April 28 and May 14, 2015, the proposed bond transaction was reviewed with and unanimously supported by the Vernon Business and Industry Commission. Subsequently, on May 19, 2015, the City Council reviewed the recommended bond refunding effort in conjunction with the three year electric rate adjustment proposal. The City Council also unanimously supported the proposed bond refunding proposal. This bond restructuring was performed following best business practices. Although exempt from the competitive bidding process, pursuant to City Code Article IV Section 2.17.12(A)(10), contract for professional services, the City took a conservative approach and issued a Request for Proposals (RFP) in October 2014 seeking proposals for investment banking and underwriting services. Prominent investment underwriting firms in municipal bond financing were solicited and the RFP was also posted on the City's website allowing other interested firms to also participate. As a result of this effort, four proposals were received. They were from Stifel, Citigroup, J.P. Morgan, and Morgan Stanley. The four proposals were scored by the City's financial advisor, PFM, and the best overall value, which would provide the lowest financing and projected future interest costs, were found in the proposals of J.P. Morgan and Citigroup. J.P. Morgan was selected as the lead investment banker and underwriter for this transaction having submitted the most competitive proposal, producing the greatest savings to the City. Citigroup was selected with the next competitive proposal to be in a junior position on this bond placement. The selection of both firms allows the City to gain greater access to the wholesale and retail markets for bonds and a greater number of prospective bond buyers. This is the strategy that is frequently employed in large bond financing transactions to ensure that all bonds are made available to the greatest number of potential investors at the most competitive market rates. Anticipated Actions and Timeline There are various milestone actions required to complete the bond financing transaction. The major activities are covered below: June 16: Receive City Council Approval June 17: Meet with Rating Agencies to Review the City's Financial Condition June 28: Receive Bond Rating Scores June 29: Post Rating Scores and Preliminary Official Bond Statement July 7 & 8: Price the Bonds for Sale Based Upon Market Rate Conditions July 13: Post the Final Official Statement for Potential Investors to Review July 21: Sale of the Bonds and Final Closing of the Transaction Council Policy Consideration This requested action supports the City Council's strategic goal of maintaining fiscal responsibility and stability while listening carefully to the needs of the City's business community. Fiscal Impact The result of this bond refunding is projected to be the issuance of$110.3 million in new 2015 Series A bonds. The components are $70.0 million in refunding the 2009 Series A bonds, $28.6 for swap contract terminations, $11.0 for the debt service reserve, and $.7 million in soft costs. The expected reduction in cash outflow over the next 7 years (FY2016 - FY2022) is expected to be in the range of$12.3 million annually, which fluctuates depending on the level of debt service each year. However, after 7 years, the new refunded debt service over an additional 5 year period (FY2023 - FY2027) is expected to be increased by approximately $21.4 million per year. After that, there will be lower debt service payments. The net impact of the financing is $7.7 million additional debt and interest costs over the next 27 year period. The rollover of this new debt profile provides a smooth effect which helps to stabilize customer electric rates so that future increases can be lower and more predictable. Attachment: Resolution Approving Bond Financing and Supporting Documents RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING AND APPROVING THE ISSUANCE OF ELECTRIC SYSTEM REVENUE BONDS; APPROVING THE SUPPLEMENTAL INDENTURE OF TRUST PURSUANT TO WHICH SUCH BONDS ARE TO BE ISSUED; APPROVING A DISCLOSURE DOCUMENT, A CONTRACT OF PURCHASE, A CONTINUING DISCLOSURE AGREEMENT AND OTHER DOCUMENTS IN CONNECTION WITH SUCH BONDS; AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, 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; and WHEREAS, the City is authorized pursuant to the provisions of I its Charter and the City of Vernon Municipal Facilities Revenue Bond Law, constituting Article XI of the City Code of the City of Vernon, to issue bonds, notes and other obligations payable from the Net Revenues of the Electric System (capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Indenture mentioned below) to finance the costs of any land, improvements, facilities, equipment and other property of any nature whatsoever which are used in the Electric System and to refund such bonds, notes and other obligations; and WHEREAS, pursuant to an Indenture of Trust, dated as of September 1, 2008 (the "2008 Master Indenture, " and, as amended and supplemented, the "Indenture" ) , entered into by the City and The Bank of New York Mellon Trust Company, N.A. , as trustee (the "Trustee" ) , the City has provided the terms and conditions for the issuance and securing of its Electric System Revenue Bonds to finance the costs of i Capital Improvements to the City' s Electric System or to refund any outstanding Parity Obligations; and WHEREAS, the City desires to provide for the issuance of its Electric System Revenue Bonds, 2015 Taxable Series A (with such changes to such name as an Authorized Officer (as defined herein) may approve, the "2015 Series Bonds" ) to provide moneys to (a) refund a portion of the City' s outstanding Electric System Revenue Bonds, 2009 Series A (the "Refunded 2009 Series A Bonds") , (b) finance Costs of certain Capital Improvements to the City' s Electric System by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund, (c) fund a deposit to the Debt Service Reserve Fund, and (d) pay costs of issuance of the 2015 Series Bonds; and WHEREAS, the 2015 Series Bonds are to be issued under and pursuant to the 2008 Master Indenture as supplemented by the Fourth Supplemental Indenture of Trust, to be entered into by the City and the Trustee (such Fourth Supplemental Indenture of Trust, in the form attached hereto as Exhibit A with such changes, insertions and deletions as are made pursuant to this Resolution being referred to herein as the "Fourth Supplemental Indenture" ) ; and WHEREAS, the 2015 Series Bonds are to be payable from and secured by a pledge and assignment of the Trust Estate on a parity with all other Bonds issued and Outstanding under the Indenture; and WHEREAS, in connection with the refunding of the Refunded 2009 Series A Bonds there has been prepared an escrow agreement between the City and the Trustee (such escrow agreement in the form attached hereto as Exhibit B with such changes, insertions and deletions as are made pursuant to this Resolution, being referred to herein as the "Escrow Agreement" ) ; and 2 WHEREAS, J.P . Morgan Securities LLC, as representative of itself and Citigroup Global Markets Inc . , as underwriters (the "Underwriters") , has submitted a proposal to purchase the 2015 Series Bonds in the form of a Contract of Purchase (such Contract of Purchase, in the form attached hereto as Exhibit C with such changes, insertions and deletions as are made pursuant to this Resolution, being referred to herein as the "Purchase Contract" ) ; and WHEREAS, in connection with the offering and sale of the 2015 Series Bonds there has been prepared a disclosure document in the form of a Preliminary Official Statement (such Preliminary Official Statement in the form attached hereto as Exhibit D with such changes, insertions and deletions as are made pursuant to this Resolution, being referred to herein as the "Preliminary Official Statement" ) ; and WHEREAS, Rule 15c2-12 requires that, in order to be able to. purchase or sell the 2015 Series Bonds, the Underwriters must have reasonably determined that an obligated person has undertaken in a written agreement or contract for the benefit of the owners of the 2015 Series Bonds to provide disclosure of certain financial information and operating data and certain material events on an ongoing basis; and WHEREAS, in order to cause such requirement of Rule 15c2-12 to be satisfied, the City desires to enter into a Continuing Disclosure Agreement with the Trustee (such Continuing Disclosure Agreement, in the form attached to the form of the Preliminary Official Statement attached hereto as Exhibit D, with such changes, insertions and deletions as are made pursuant to this Resolution, being referred to herein as the "Continuing Disclosure Agreement" ) ; and WHEREAS, there have been submitted to this meeting drafts of the following: 3 (1) the Fourth Supplemental Indenture; (2) the Escrow Agreement; (3) the Purchase Contract; and (4) the Preliminary Official Statement, including the Continuing Disclosure Agreement; and WHEREAS, after having reviewed and considered the proposal of the Underwriters to purchase the 2015 Series Bonds on the terms and conditions contained in the Purchase Contract, this City Council now desires to authorize the issuance and sale of the 2015 Series Bonds, including the execution of such documents and the performance of such acts as may be necessary or desirable to effect such issuance and sale, and the other actions contemplated by this Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON, AS FOLLOWS: SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2 : The Fourth Supplemental Indenture, in substantially the form attached hereto as Exhibit A, and made a part hereof as though set forth in full herein, be and the same is hereby approved. 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 Fourth Supplemental Indenture, 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 Fourth Supplemental Indenture, said execution being conclusive evidence of such approval, and the City Clerk is hereby authorized to attest thereto. 4 SECTION 3 : Subject to the limitations specified in this Resolution, the issuance of the 2015 Series Bonds on the terms and conditions set forth in the Fourth Supplemental Indenture is hereby authorized and approved. The aggregate principal amount of the 2015 Series Bonds shall not exceed one hundred forty million dollars ($140, 000, 000) . The 2015 Series Bonds will be dated as provided in, will bear interest at the rates provided in, will mature on the date or dates provided in, will be issued in the form provided in, will have the Sinking Fund Installments specified in, will be subject to redemption as provided in, and will have such other terms as shall be provided in, the Fourth Supplemental Indenture as the same is completed as provided in this Resolution, provided that no 2015 Series Bond shall bear a stated rate of interest in excess of 6 . 0% per annum. SECTION 4 : The Authorized Officer- executing the Fourth Supplemental Indenture is hereby authorized, subject to the limitations set forth in Section 3 hereof and in this Section 4, to determine the following: (i) the maturity date or dates of the 2015 Series Bonds (but no 2015 Series Bond shall mature later than August 1, 2035) ; (ii) the principal amount of the 2015 Series Bonds maturing on each maturity date; (iii) the interest rate or rates for the 2015 Series Bonds maturing on each maturity date; (iv) the maturity or maturities, if any, of the 2015 Series Bonds to be redeemed or paid at maturity from Sinking Fund Installments ("Term 2015 Series Bonds" ) ; (v) the Sinking Fund Installments for the Term 2015 Series Bonds; and (vi) the redemption provisions for the 2015 Series Bonds . SECTION 5 : The net proceeds received on the sale of the 2015 Series Bonds shall be applied to such purposes as are set forth in 5 the recitals to this Resolution in the manner provided in the Fourth Supplemental Indenture . SECTION 6 : The Purchase Contract, in substantially the form attached hereto as Exhibit C, and made a part hereof as though set forth in full herein, be and the same is hereby approved. Each of the Authorized Officers, acting singly, is hereby authorized to execute and deliver the Purchase Contract, 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 said Purchase Contract and as are consistent with the determinations of the terms of the 2015 Series Bonds made pursuant to this Resolution, said execution being conclusive evidence of such approval . The Authorized Officer executing the Purchase Contract is hereby authorized to determine the purchase price to be paid for the 2015 Series Bonds under the Purchase Contract; provided, however, that (a) the aggregate Underwriters, discount (not including original issue discount which shall not exceed 7 . 0o of the aggregate principal amount of the 2015 Series Bonds) for the 2015 Series Bonds shall be not more than 0 . 501 of the aggregate principal amount of the 2015 Series Bonds, and (b) the calculation of the Make Whole Redemption Price for the Series 2015 Bonds shall not include a premium above the Treasury Rate that is greater than 100 basis points . The sale of the 2015 Series Bonds to the Underwriters on the terms and conditions contained in the Purchase Contract, as the same may be completed in accordance with the provisions of this Resolution, with such changes, insertions and deletions as are authorized hereby, is hereby approved and authorized. SECTION 7 : The Preliminary Official Statement, in 6 f. substantially the form attached hereto as Exhibit D, and made a part hereof as though set forth in full herein, be and the same is hereby approved. Each of the Authorized Officers, acting singly, is hereby authorized to cause the Preliminary Official Statement to be delivered to the Underwriters, in substantially the form attached hereto as Exhibit D with such changes, insertions and deletions as may be approved by the Authorized Officer delivering the Preliminary Official Statement (including without limitation the insertion of the proposed terms of the 2015 Series Bonds) , said delivery being conclusive evidence of such approval . The use of the Preliminary Official Statement in connection with the offering and sale of the 2015 Series Bonds by the Underwriters, including delivery of the Preliminary Official Statement in electronic form, is hereby authorized and approved. Each of the Authorized Officers, acting singly, is hereby authorized to determine that the Preliminary Official Statement is deemed final for purposes of Rule 15c2-12 . The preparation and delivery to the Underwriters of a final Official Statement (the "Official Statement" ) relating to the 2015 Series Bonds, and its use by the Underwriters in connection with the offering and sale of the 2015 Series Bonds, including delivery of the Official Statement in electronic form, be and the same is hereby approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement with such changes, insertions and deletions as may be approved by the Authorized Officer executing the Official Statement (including without limitation the insertion of the final terms of the 2015 Series Bonds) , said execution being conclusive evidence of such approval . Each of the Authorized Officers, acting singly, is hereby authorized to execute the Official Statement, in the 7 name and on behalf of the City, and thereupon to cause the Official Statement to be delivered to the Underwriters . Each of the Authorized Officers, acting singly, is hereby authorized to approve and execute any amendment or supplement to the Official Statement contemplated by the Purchase Contract, in the name and on behalf of the City, and thereupon to cause such amendment or supplement, to be delivered to the Underwriters . SECTION 8 : The Continuing Disclosure Agreement, in substantially the form attached to the form of the Preliminary Official Statement attached hereto as Exhibit D, be and the same is hereby approved. Each of the Authorized Officers, acting singly, is hereby authorized to execute and deliver the Continuing Disclosure Agreement, in the name of and on behalf of the City, in substantially such form with such changes, insertions and deletions as may be approved by the Authorized Officer executing the same, said execution being conclusive evidence of such approval, and the City Clerk is hereby authorized to attest thereto. SECTION 9 : The Escrow Agreement, in substantially the form attached hereto as Exhibit B, and made a part hereof as thought set forth in full herein, be and the same is hereby approved. Each of the Authorized Officers, acting singly, is hereby authorized to execute and deliver the Escrow Agreement, 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 same, said execution being conclusive evidence of such approval, and the City Clerk is hereby authorized to attest thereto. SECTION 10 : The refunding of the Refunded 2009 Series A Bonds on the terms provided in the Escrow Agreement is hereby 8 authorized and approved. SECTION 11 : The City Council hereby finds and determines that, in accordance with California Environmental Quality Act (Public Resources Code Section 21000 et seq. ; herein referred to as "CEQA" ) and Title 14 of the California Code of Regulations (herein referred to as the "CEQA Guidelines" ) , the adoption of this Resolution by the City Council relates to the refinancing or funding of previously-approved projects and, therefore, is exempt from CEQA pursuant to CEQA Guidelines Sections 15060 (c) (3) , 15378 (b) (4) , and 15378 (b) (5) because the activity approved by this Resolution relating to the refinancing or funding of previously-approved projects will not result in direct or indirect physical changes in the environment and, therefore, is not a "project, " as defined in Section 15378 of the CEQA Guidelines . City staff is hereby directed to file with the Clerk of the County of Los Angeles a Notice of Exemption and Notice of Determination following adoption of this Resolution. SECTION 12 : The Mayor, the Mayor Pro Tem, the City Administrator, the Treasurer, the Finance Director, the City Clerk, the City Attorney, the Director of Gas and Electric Department 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, 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 issuance 9 and sale of the 2015 Series Bonds and the authorization, execution, delivery and performance by the City of its obligations under the documents and instruments approved or authorized by this Resolution. SECTION 13 : 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 2015 Series Bonds or the authorization, execution, delivery, or performance of the City' s obligations under the documents and instruments approved or authorized by this Resolution, and the other actions contemplated by this Resolution, are hereby ratified, approved and confirmed. 10 SECTION 14 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name : Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: I Hema Patel, City Attorney Gerald Kim, Esq. Orrick, Herrington & Sutcliff LLP Special Counsel to City 11 STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) 12 i i EXHIBIT A Exhibit A [Fourth Supplemental Indenture Attached] OHSUSA:76 1 72 5340.5 A-1 OH&S Draft of 6/9/15 FOURTH SUPPLEMENTAL INDENTURE OF TRUST between CITY OF VERNON and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee Dated as of July 1, 2015 Relating to City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A OHSUSA:761725342.6 TABLE OF CONTENTS Page ARTICLE I AUTHORITY AND DEFINITIONS...................................................................... 2 Section 1.01. Supplemental Indenture of Trust................................................................ 2 Section 1.02. Authority for the Fourth Supplemental Indenture of Trust......................... 2 Section1.03. Definitions................................................................................................... 2 Section1.04. Interpretation............................................................................................... 4 ARTICLE II THE 2015 SERIES BONDS................................................................................... 5 Section 2.01. Principal Amount and Designation; Conditions to Issuance...................... 5 Section 2.02. Terms of the 2015 Series Bonds; Registration; Denominations; Payment of Principal and Interest............................................................... 5 Section 2.03. Terms of Redemption ................................................................................. 6 Section 2.04. Application of Proceeds of 2015 Series Bonds........................................... 7 ARTICLEIII FUNDS ................................................................................................................... 8 Section 3.01. 2015 Costs of Issuance Fund...................................................................... 8 Section 3.02. 2015 Termination Payment Fund................................................................ 9 ARTICLE IV MISCELLANEOUS ............................................................................................. 10 Section 4.01. Indenture to Remain in Effect................................................................... 10 Section 4.02. Continuing Disclosure Section 4.03. Notice to Rating Agencies........................................................................ 10 Section4.04. Notices...................................................................................................... 10 Section4.05. Counterparts.............................................................................................. 11 EXHIBIT A FORM OF 2015 Series Bonds...............................................................................A-1 -i- OHSUSA:761725342.6 FOURTH SUPPLEMENTAL INDENTURE OF TRUST THIS FOURTH SUPPLEMENTAL INDENTURE OF TRUST, dated as of July 1, 2015, is entered into by and between the City of Vernon (the "City"), a municipal corporation and chartered city of the State of California and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), a national banking association duly organized and existing under and by virtue of the laws of the United States of America, authorized to accept and execute trusts of the character in the Indenture set forth; WITNESSETH : WHEREAS, the City has entered into the Indenture of Trust, dated as of September 1, 2008 (the "Master Indenture") by and between the City and the Trustee to provide for the issuance from time to time by the City of Bonds (capitalized terms used herein shall have the meanings given such terms pursuant to Section 1.03) to, among other things,pay the Costs of Capital Improvements and to refund Outstanding Bonds; and WHEREAS, the Cost of the Capital Improvements under the Indenture includes all costs of acquiring such Capital Improvements permitted under the Bond Ordinance and includes reimbursing the City for such Costs paid by the City; and WHEREAS, the Master Indenture authorizes the City and the Trustee to enter into Supplemental Indentures to provide for the issuance of Bonds; and WHEREAS, pursuant to the Master Indenture, as supplemented by the Second Supplemental Indenture, the City has issued the 2009 Series A Bonds; and WHEREAS, the City desires to issue its 2015 Series Bonds in order to provide moneys to (a) refund the Refunded 2009 Series A Bonds, (b) finance Costs of Capital Improvements by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund, (c) fund a deposit to the Debt Service Reserve Fund, and (d) pay costs of issuance of the 2015 Series Bonds; WHEREAS, the City has determined that all acts and things have been done and performed which are necessary to make the Indenture, as hereto amended and supplemented and as supplemented by this Fourth Supplemental Indenture, a valid and binding agreement for the security of the 2015 Series Bonds authenticated and delivered hereunder; NOW, THEREFORE, KNOW ALL PERSONS BY THESE PRESENTS, THIS FOURTH SUPPLEMENTAL INDENTURE OF TRUST WITNESSETH: That, in consideration of the premises, the acceptance by the Trustee of the trusts hereby created and originally created by the Master Indenture, the mutual covenants herein contained and the purchase and acceptance of the 2015 Series Bonds by the Owners thereof, and for other valuable consideration, the receipt whereof is hereby acknowledged, and in order to secure the payment of the principal of, Redemption Price, if any, and interest on the 2015 Series Bonds according to their tenor and effect, and the performance and observance by the City of all OHSUSA:761725342.6 the covenants and conditions in the Indenture and in the 2015 Series Bonds contained on its part to be performed, it is agreed by and between the City and the Trustee as follows: ARTICLE I AUTHORITY AND DEFINITIONS Section 1.01. Supplemental Indenture of Trust. This Fourth Supplemental Indenture is supplemental to the Master Indenture. Section 1.02. Authority for the Fourth Supplemental Indenture of Trust. This Fourth Supplemental Indenture is entered into (a) pursuant to the Charter and Bond Ordinance and (b)in accordance with Article II and Article VII of the Master Indenture. Section 1.03. Definitions. (a) Except as otherwise defined by this Fourth Supplemental Indenture, all terms which are defined in Section 1.01 of the Master Indenture, as amended and supplemented to the date hereof, shall have the same meanings, respectively, in this Fourth Supplemental Indenture as such terms are given in the Master Indenture as so amended and supplemented. (b) Additional Definitions. The following terms shall, with respect to the 2015 Series Bonds and for all purposes hereof, have the meanings set forth below: "Authorized Denominations" means with respect to the 2015 Series Bonds $5,000 and any integral multiple thereof. "Comparable Treasury Issue" means, with respect to any redemption date for a particular 2015 Series Bond, the US Treasury security or securities selected by the Independent Investment Banker which has an actual or interpolated maturity comparable to the remaining average life of the 2015 Series Bond to be redeemed, and that would be utilized in accordance with customary financial practice in pricing new issues of debt securities of comparable maturity to the remaining average life of the 2015 Series Bond to be redeemed. "Comparable Treasury Price" means, with respect to any redemption date for a 2015 Series Bond, (1) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. "Fourth Supplemental Indenture" means this Fourth 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. "Independent Investment Banker" means an independent accounting firm, investment banking firm or financial advisor selected by the City to calculate, at the City's expense, the Make Whole Redemption Price. The initial Independent Investment Banker shall be JPMorgan Securities LLC. OHSUSA:761725342.6 2 "Interest Payment Date" means, with respect to the 2015 Series Bonds, each February 1 and August 1, commencing [February 1, 2016]. "Record Date" means, with respect to an Interest Payment Date for the 2015 Series 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. "Reference Treasury Dealer" means JPMorgan Securities LLC, and its successor and three other firms, specified by the City from time to time, that are primary U.S. Government securities dealers in the City of New York (each a "Primary Treasury Dealer"); provided, however, that if any of them ceases to be a Primary Treasury Dealer, the City will substitute another Primary Treasury Dealer. "Reference Treasury Dealer Quotations" means, with respect to each Reference Treasury Dealer and any redemption date for a 2015 Series Bond, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding such redemption date. "Refunded 2009 Series A Bonds" means the $ aggregate principal amount of 2009 Series A Bonds maturing on August 1 in the years [2016 through 2021, inclusive]. "Sinking Fund Installment" means: [(i) with respect to the 2015 Series Bonds maturing on August 1, 20 the amount required by Section 2.03(c) hereof to be paid by the City on any single date for the retirement of such 2015 Series Bonds; and (ii) with respect to the 2015 Series Bonds maturing on August 1, 20_, the amount required by Section 2.03(e)hereof to be paid by the City on any single date for the retirement of such 2015 Series Bonds]. "Treasury Rate" means, with respect to any redemption date for a 2015 Series Bond, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated maturity of the Comparable Treasury Issue, assuming that the Comparable Treasury Issue is purchased on the redemption date for a price equal to the Comparable Treasury Price. "2015 Continuing Disclosure Agreement" means the Continuing Disclosure Agreement, dated as of July 1, 2015, between the City and the Trustee relating to the 2015 Series Bonds. "2015 Costs of Issuance Fund" means the 2015 Costs of Issuance Fund established pursuant to Section 3.01. 112015 Delivery Date" means July , 2015. "2015 Escrow Agreement" means the Escrow Agreement, dated as of July 1, 2015, between the City and The Bank of New York Mellon Trust Company, N.A., as trustee for the Refunded 2009 Bonds. "2015 Escrow Fund" means the Escrow Fund established pursuant to the 2015 Escrow Agreement. OHSUSA:761725342.6 3 "2015 Make Whole Redemption Price" means, with respect to a 2015 Series Bond to be redeemed, in whole or in part, at the option of the City, a redemption price, calculated by the Independent Investment Banker, equal to the greater of(i) one hundred percent (100%) of the principal amount of the 2015 Series Bond to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2015 Series Bond to be redeemed (exclusive of interest accrued to the date fixed for redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus basis points, plus in each case, accrued and unpaid interest on the 2015 Series Bond being redeemed to the date fixed for redemption. "2015 Series Bonds" means the City's Electric System Revenue Bonds, 2015 Taxable Series A authorized by Article III hereof. "2015 Termination Payments" means the termination payments[, in the aggregate amount of $ ,] required to be paid by the City in connection with (a) the termination of the interest rate swap transaction between the City and Morgan Stanley Capital Services Inc., originally relating to the City's Electric System Revenue Bonds, 2004 Series A, and (b) the termination of the interest rate swap transaction between the City and Deutsche Bank AG, originally relating to the City's Electric System Revenue Bonds, 2004 Series B. 112015 Termination Payment Fund" means the 2015 Termination Payment Fund established pursuant to Section 3.02. Section 1.04. Interpretation. (a) Unless the context otherwise indicates, defined terms shall include all variants thereof, words expressed in the singular shall include the plural and vice versa and the use of the neuter, masculine or feminine gender is for convenience only and shall be deemed to mean and include the neuter,masculine and feminine genders, as appropriate. (b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof. (c) References herein to the Securities Depository shall include both the Securities Depository and any nominee of the Securities Depository in whose name the 2015 Series Bonds may be registered. (d) Unless otherwise indicated, references herein to Articles and Sections shall be to the Articles and Sections of this Fourth Supplemental Indenture. The words "herein," "hereof," "hereby," "hereunder" and other words of similar import refer to this Fourth Supplemental Indenture as a whole and not to any particular Article, Section or subdivision hereof. OHSUSA:761725342.6 4 ARTICLE II THE 2015 SERIES BONDS Section 2.01. Principal Amount and Designation; Conditions to Issuance. (a) Pursuant to the provisions of the Master Indenture and this Fourth Supplemental Indenture and the provisions of the Charter and the Bond Ordinance, a Series of Bonds entitled to the benefit, protection and security of such provisions is hereby authorized in the aggregate principal amount of$ . Such Bonds shall be designated as, and shall be distinguished from the Bonds of all other Series by the title, "City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A." The 2015 Series Bonds shall be in substantially the form attached hereto as Exhibit A with such variations and omissions as are necessary to reflect the particular terms of each 2015 Series Bond. (b) The 2015 Series Bonds are issued for the purpose of providing moneys to (i) refund the Refunded 2009 Series A Bonds, (ii) finance Costs of Capital Improvements by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund, (iii) fund a deposit to the Debt Service Reserve Fund, and (iv) pay costs of issuance of the 2015 Series Bonds. (c) All (but not less than all) of the 2015 Series Bonds shall be executed by the City for issuance under the Indenture and delivered to the Trustee and thereupon shall be authenticated by the Trustee and delivered to the City or upon its order but only upon receipt by the Trustee of the applicable items required pursuant to Sections 2.04 and 2.07 of the Master Indenture with respect to the 2015 Series Bonds. Section 2.02. Terms of the 2015 Series Bonds; Registration; Denominations; Payment of Principal and Interest. (a) The 2015 Series Bonds shall be issued as fully registered Bonds without coupons in Authorized Denominations. The 2015 Series Bonds shall be registered initially in the name of "Cede & Co.," as nominee of DTC, the initial Securities Depository for the 2015 Series Bonds, and shall be evidenced by one bond certificate in the total aggregate principal amount of the 2015 Series Bonds of each maturity. Registered ownership of the 2015 Series Bonds, or any portion thereof, may not thereafter be transferred except as set forth in Section 3.04 of the Master Indenture (b) The 2015 Series Bonds shall be dated the 2015 Delivery Date. OHSUSA:761725342.6 5 I (c) The 2015 Series Bonds shall mature on August 1 of the years, in the principal amounts, and shall bear interest at the rates, in each case as set forth below: Maturity Date (August 1) Principal Amount Interest Rate Section 2.03. Terms of Redemption. (a) [The 2015 Series Bonds 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 any date, at a Redemption Price equal to the 2015 Make Whole Redemption Price of the 2015 Bonds to be redeemed.] (b) [The 2015 Series Bonds maturing on August 1, 20 are also subject to mandatory redemption in part prior to their stated maturity from Sinking Fund Installments established pursuant to subsection (c) of this Section on any August 1 on or after August 1, 20---, at a Redemption Price equal to the principal amount of the 2015 Series Bonds to be redeemed, without premium.] (c) [The following shall be the Sinking Fund Installments for the 2015 Series Bonds maturing on August 1, 20_. Such installments shall be due on August 1 of each of the years set forth in the following table in the respective amounts set forth opposite such years in said table:] Sinking Fund Installment Due Sinking Fund Date (August 1) Installment * Maturity (d) [The 2015 Series Bonds maturing on August 1, 20_ are also subject to mandatory redemption in part prior to their stated maturity from Sinking Fund Installments established pursuant to subsection (e) of this Section on any August 1 on or after August 1, 20_, at a Redemption Price equal to the principal amount of the 2015 Series Bonds to be redeemed, without premium.] OHSUSA:761725342.6 6 (e) [The following shall be the Sinking Fund Installments for the 2015 Series Bonds maturing on August 1, 20_. Such installments shall be due on August 1 of each of the years set forth in the following table in the respective amounts set forth opposite such years in said table:] Sinking Fund Installment Due Sinking Fund Date (August 1) Installment Maturity (f) The City shall provide the Trustee with revised sinking fund schedules in the event a credit for the Sinking Fund Installments for the 2015 Series Bonds is to apply as provided in Section 5.04(c) of the Master Indenture. Section 2.04. Application of Proceeds of 2015 Series Bonds. The proceeds of the sale of the 2015 Series Bonds (equal to the principal amount thereof, [plus/less] original issue [premium/discount] of$ , less underwriters' discount of$ ) shall be applied simultaneously with the delivery of the 2015 Series Bonds, as follows: (a) There shall be deposited in the Debt Service Reserve Fund the sum of$ ; I (b) There shall be deposited in the 2015 Costs of Issuance Fund the sum of (c) There shall be deposited in the 2015 Escrow Fund the sum of$ ; and (d) The City represents and warrants that there has previously been expended from the Light and Power Fund an amount not less than $ which has not been financed or otherwise reimbursed for the Costs of Capital Improvements to transmission, distribution and renewable infrastructure of the Electric System for which the Light and Power Fund has not been reimbursed and which facilities have not otherwise been financed. The City further represents and warrants that such facilities have a book value to the Electric System of not less than such amount. The $ net proceeds of the 2015 Series Bonds not deposited in the Debt Service Reserve Fund, the 2015 Costs of Issuance Fund or the 2015 Escrow Fund are hereby deemed to be applied as a reimbursement to the Electric System for the previous payment of the Costs of such Capital Improvements to transmission, distribution and renewable infrastructure of the Electric System. The City hereby directs that such reimbursement be applied by depositing in the 2015 Termination Payment Fund the sum of$ OHSUSA:761725342.6 7 ARTICLE III FUNDS Section 3.01. 2015 Costs of Issuance Fund. (a) The Trustee shall establish and maintain in trust a separate fund designated as the "2015 Costs of Issuance Fund." Except as provided in subsections (c) and (e) of this Section, money deposited in the 2015 Costs of Issuance Fund shall be used to pay the Costs of Issuance with respect to the 2015 Series Bonds as provided in this Section. (b) The Trustee shall make payments from the 2015 Costs of Issuance Fund, except payments and withdrawals pursuant to subsection (c) or subsection (e) of this Section, in the amounts, at the times, in the manner and on the other terms and conditions set forth in this subsection. Before any such payment from the 2015 Costs of Issuance Fund shall be made, there shall be filed with the Trustee a requisition therefor, signed by an Authorized City Representative. Each such requisition shall state, in respect of the payment to be made (i) the name of the Person to whom payment is due, (ii) the amount of such payment, and (iii) the particular item of the Costs of Issuance of the 2015 Series Bonds to be paid and that such payment in the stated amount is a proper charge against the 2015 Costs of Issuance Fund and that no part of such payment shall be applied to any item which has previously been paid from moneys in the 2015 Costs of Issuance Fund. The Trustee shall promptly issue its check to the City or to the Person identified in the requisition in the amount or amounts specified in each such requisition or, if requested pursuant to any such requisition, shall by wire transfer, interbank transfer or other method arrange to promptly make each payment required by such requisition. The City shall apply, or cause to be applied, all such moneys received from the 2015 Costs of Issuance Fund pursuant to this subsection (b) to the payment of the Costs of Issuance of the 2015 Series Bonds identified in the requisition relating to such moneys. Each such requisition shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have no duty to confirm the accuracy of such facts. Upon receipt of each such requisition, signed by an Authorized City Representative, the Trustee shall pay the amount set forth therein as directed by the terms thereof. (c) Upon the receipt by the Trustee of a certificate of an Authorized City Representative requesting the Trustee to close the 2015 Costs of Issuance Fund, and after payment from the 2015 Costs of Issuance Fund of all amounts included in requisitions submitted by the City pursuant to subsection (b) of this Section, the Trustee shall transfer any moneys remaining in the 2015 Costs of Issuance Fund to the account in the Debt Service Fund specified by the City. Upon such transfer the Trustee shall close the 2015 Costs of Issuance Fund. (d) Moneys held in the 2015 Costs of Issuance Fund may be invested and reinvested to the fullest extent practicable in Permitted Investments which mature not later than such times as shall be necessary to provide moneys when needed for payments to be made from such Fund. Any investment earnings on moneys on deposit in the 2015 Costs of Issuance Fund shall be deposited in the 2015 Costs of Issuance Fund and be used in the same manner as other amounts on deposit in the 2015 Costs of Issuance Fund. OHSUSA:761725342.6 g (e) Notwithstanding any of the other provisions of this Section, to the extent that other moneys are not available therefor, amounts in the 2015 Costs of Issuance Fund shall be applied to the payment of Bond debt service when due. Section 3.02. 2015 Termination Payment Fund. (a) The Trustee shall establish and maintain in trust a separate fund designated as the "2015 Termination Payment Fund." Except as provided in subsections (c) and (e) of this Section, money deposited in said fund shall be used to pay the 2015 Termination Payments as provided in this Section. (b) The Trustee shall make payments from the 2015 Termination Payment Fund, except payments and withdrawals pursuant to subsection (c) or subsection (e) of this Section, in the amounts, at the times, in the manner and on the other terms and conditions set forth in this subsection. Before any such payment from the 2015 Termination Payment Fund shall be made, there shall be filed with the Trustee a requisition therefor, signed by an Authorized City Representative. Each such requisition shall state, in respect of the payment to be made (i) the name of the Person to whom payment is due, (ii) the amount of such payment, and (iii) the particular item of the 2015 Termination Payments to be paid and that such payment in the stated amount is a proper charge against the 2015 Termination Payment Fund and that no part of such payment shall be applied to any item which has previously been paid from moneys in the 2015 Termination Payment Fund. The Trustee shall promptly issue its check to the City or to the Person identified in the requisition in the amount or amounts specified in each such requisition or, if requested pursuant to any such requisition, shall by wire transfer, interbank transfer or other method arrange to promptly make each payment required by such requisition. The City shall apply, or cause to be applied, all such moneys received from the 2015 Termination Payment Fund pursuant to this subsection (b) to the payment of the 2015 Termination Payments identified in the requisition relating to such moneys. Each such requisition shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have no duty to confirm the accuracy of such facts. Upon receipt of each such requisition, signed by an Authorized City Representative, the Trustee shall pay the amount set forth therein as directed by the terms thereof. (c) Upon the receipt by the Trustee of a certificate of an Authorized City Representative requesting the Trustee to close the 2015 Termination Payment Fund, and after payment from the 2015 Termination Payment Fund of all amounts included in requisitions submitted by the City pursuant to subsection (b) of this Section, the Trustee shall transfer any moneys remaining in the 2015 Termination Payment Fund to the account in the Debt Service Fund specified by the City. Upon such transfer the Trustee shall close the 2015 Termination Payment Fund. (d) Moneys held in the 2015 Termination Payment Fund may be invested and reinvested to the fullest extent practicable in Permitted Investments which mature not later than such times as shall be necessary to provide moneys when needed for payments to be made from such Fund. Any investment earnings on moneys on deposit in the 2015 Termination Payment OHSUSA:761725342.6 9 Fund shall be deposited in the 2015 Termination Payment Fund and be used in the same manner as other amounts on deposit in the 2015 Termination Payment Fund. (e) Notwithstanding any of the other provisions of this Section, to the extent that other moneys are not available therefor, amounts in the 2015 Termination Payment Fund shall be applied to the payment of Bond debt service when due. ARTICLE IV MISCELLANEOUS Section 4.01. 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 and this Fourth Supplemental Indenture, the Master Indenture shall remain in full force and effect. Section 4.02. Continuing Disclosure. The City hereby covenants and agrees to comply with and carry out all the provisions of the 2015 Continuing Disclosure Agreement. Notwithstanding any other provision of the Indenture, failure of the City to comply with the 2015 Continuing Disclosure Agreement shall not be considered an Event of Default and the Trustee shall have no right to accelerate amounts due under the Indenture as a result thereof, provided, however, that the Trustee, upon receipt of indemnification reasonably satisfactory to it, and the Owners of not less than 25% in principal amount of the Outstanding 2015 Series Bonds 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 in this Section and the 2015 Continuing Disclosure Agreement. i Section 4.03. Notice to Rating Agencies. The Trustee or the City, as appropriate, shall provide each Rating Agency with prompt written notice of(a) the appointment of any successor Trustee, (b) the first date no 2015 Series Bonds are Outstanding, (c) any material amendments to the Master Indenture or this Fourth Supplemental Indenture, (d) any acceleration of the 2015 Series Bonds pursuant to Section 10.04 of the Master Indenture, or (e) any redemption in whole of the 2015 Series Bonds. Section 4.04. Notices. Unless otherwise provided herein, all notices, certificates or other communications hereunder shall be deemed sufficiently given upon actual receipt thereof when received by the City, the Trustee or a Rating Agency, as the case may be, at the respective address provided pursuant to this Section or, if mailed by first class mail, postage prepaid, addressed to the appropriate address provided pursuant to this Section, six Business Days after deposit in the United States mail or, if by Electronic means of communication delivered to the appropriate email address provided pursuant to this Section, if any, on the date of receipt of such Electronic communication. The initial addresses for notices, counterparts and other communications hereunder are as follows: OHSUSA:761725342.6 10 If to the City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: City Administrator Email: mwhitworth@ci.vemon.ca.us If to the Trustee: The Bank of New York Mellon Trust Company, N.A. 700 South Flower Street, Suite 500 Los Angeles, CA 90017 Attention: Corporate Trust Department Email: If to S&P, to: Standard &Poor's Ratings Services 55 Water Street, 38th Floor New York, New York 10041 Attention: Public Finance Department If to [Moody's/Fitch], to: Attn: Each of City, the Trustee, and the Rating Agencies may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications to it shall be sent. Unless otherwise requested by the City, the Trustee or a Rating Agency, any notice required to be given hereunder in writing may be given by any form of Electronic notice capable of making a written record. Section 4.05. Counterparts. This Fourth Supplemental Indenture may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which, when so executed and delivered, shall be an original; but such counterparts shall together constitute but one and the same instrument. OHSUSA:761725342.6 1 IN WITNESS WHEREOF, the City of Vernon has caused these presents to be signed in its name and on its behalf by its [City Administrator] and attested by its City Clerk and to evidence its acceptance of the trusts hereby created, the Trustee has caused these presents to be signed in its name and on its behalf by one of its authorized officers, all as of the first day of July, 2015. CITY OF VERNON By: [Mark C. Whitworth, City Administrator] ATTEST: By: Maria E. Ayala, City Clerk APPROVED AS TO FORM: I By: City Attorney THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee By: Authorized Officer OHSUSA:761725342.6 EXHIBIT A FORM OF 2015 SERIES BONDS UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,A NEW YORK CORPORATION ("DTC"), TO THE CITY OF VERNON OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. CITY OF VERNON ELECTRIC SYSTEM REVENUE BOND, 2015 TAXABLE SERIES A No. R- $ Interest Rate Dated Date Maturity Date CUSIP No. 2015 August 1, REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THE CITY OF VERNON (herein called the "City"), a municipal corporation and chartered city of the State of California, acknowledges itself indebted to, and for value received hereby promises to pay(but only out of the Net Revenues (capitalized terms used herein shall have the meanings given such terms pursuant to the Indenture mentioned below) and other assets pledged therefor and available for such payment pursuant to the Indenture) to the Registered Owner specified above or registered assigns, on the Maturity Date specified above (unless this Bond shall have been previously called for redemption in whole or in part and payment of the Redemption Price shall have been duly made), the Principal Amount specified above, in lawful money of the United States of America and to pay interest thereon (but only from said Net Revenues and other pledged assets available for such payment pursuant to the Indenture) in like lawful money until payment of such principal sum shall be discharged as provided in the Indenture, at the rate set forth above. Except as otherwise provided in the Indenture with respect to Bonds held by a Securities Depository, the principal or, if applicable, the Redemption Price, hereof is payable upon surrender hereof at the designated Principal Office of the Trustee under the Indenture (the "Trustee"). The current Trustee is The Bank of New York Mellon Trust Company, N.A., and its OHSUSA:761725342.6 A-1 designated Principal Office is its principal corporate trust office in Los Angeles, California, or such other place as designated by the Trustee. Except as otherwise provided with respect to 2015 Series Bonds held by a Securities Depository, interest hereon is payable by check mailed on each Interest Payment Date to the Owner hereof as of the applicable Record Date at the address appearing on the Bond Register maintained by the Trustee; provided Owners of at least $1,000,000 aggregate principal amount of 2015 Series Bonds may, at any time prior to a Record Date, give the Trustee written instructions for payment of such interest on each succeeding Interest Payment Date for such 2015 Series Bonds by wire transfer or by deposit to an account within the United States of America. This Bond is one of a duly authorized issue of bonds of the City designated as "City of Vernon, Electric System Revenue Bonds" (the `Bonds") and of a Series of the Bonds designated as "Electric System Revenue Bonds, 2015 Taxable Series A" (the "2015 Series Bonds"). The 2015 Series Bonds are issued pursuant to the Charter and the Bond Ordinance. The 2015 Series Bonds have been issued in the aggregate principal amount of$ . The 2015 Series Bonds are issued under, and, together with all other Bonds issued and outstanding thereunder, are equally and ratably secured by a pledge of the Trust Estate under, and entitled to the protection given by, the Indenture of Trust, dated as of September 1, 2008, between the City and the Trustee, as amended and supplemented, including as amended and supplemented by the Fourth Supplemental Indenture of Trust, dated as of July 1, 2015 between the City and the Trustee (said Indenture of Trust, as heretofore amended and supplemented and as the same may be further amended and supplemented, is herein called the"Indenture"). As provided in the Indenture, Bonds of the City may be issued thereunder from time to time pursuant to Supplemental Indentures in one or more Series, in various principal amounts, may mature at different times, may bear interest at different rates and may otherwise vary as in the Indenture provided. The aggregate principal amount of Bonds which may be issued under the Indenture is not limited except as provided in the Indenture, and all Bonds issued and to be issued under the Indenture are and will be equally secured by the pledge and covenants made therein, except as otherwise expressly provided or permitted in the Indenture. Copies of the Indenture are on file at the City Hall of the City and at the Principal Office of the Trustee and reference is hereby made to the Indenture and to all amendments and supplements thereto for a description of the provisions, among others, with respect to the nature and extent of the security, the rights, duties and obligations of the City, the Trustee and the Owners of the Bonds and the terms upon which the Bonds are secured and payable under the Indenture, the rights and remedies of the Owners of the 2015 Series Bonds, the limitations on such rights and remedies and the terms and conditions upon which Bonds are issued and may be issued thereunder. On the Dated Date of this Bond, there were $ aggregate principal amount of Bonds Outstanding under the Indenture in addition to the 2015 Series Bonds (and including any Outstanding Bonds to be refunded with proceeds of the 2015 Series Bonds). The Indenture provides that other Parity Obligations secured by a pledge of Revenues and amounts in the Light and Power Fund on a parity with the Bonds may be issued or incurred by the City on the terms set forth therein. By acceptance of this Bond, the Registered Owner accepts and agrees to the terms of the Indenture. OHSUSA:76 1 725 342.6 A-2 This Bond is a special obligation of the City and the principal of, Redemption Price, if any, and interest on this Bond are payable solely from the Net Revenues, the amounts in the Light and Power Fund available for such payment pursuant to the Indenture, and the amounts in the Funds held by the Trustee under the Indenture other than the Rebate Fund. The City's obligation to pay and the principal of, Redemption Price, if any, and interest on this Bond shall not constitute a charge against the general credit of the City. This Bond is 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 pledge is subject to the provisions of the Indenture 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 this Bond. The issuance of this Bond shall 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 this Bond. The payment of the principal or Redemption Price of or interest on this Bond 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 this Bond, nor any officer or employee of the City, shall be individually liable for the principal or Redemption Price of or interest on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond or in respect of any undertakings by the City under the Indenture. j Interest on the 2015 Series Bonds shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The term "Interest Payment Date" means, with respect to the 2015 Series Bonds, each February 1 and August 1, commencing [February 1, 2016]. The term "Record Date" means, with respect to an Interest Payment Date for the 2015 Series Bonds, the fifteenth day of the month preceding the month in which such Interest Payment Date falls. The 2015 Series Bonds 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 any date, at a Redemption Price equal to the 2015 Make Whole Redemption Price of the 2015 Bonds to be redeemed. [The 2015 Series Bonds maturing on August 1, 20_ are subject to mandatory redemption, in part, on any August 1 on and after August 1, 20_, at a Redemption Price equal to the principal amount of such 2015 Series Bonds to be redeemed, without premium, from the Sinking Fund Installments established for such 2015 Series Bonds in the Indenture.] [The 2015 Series Bonds maturing on August 1, 20_ are subject to mandatory redemption, in part, on any August 1 on and after August 1, 20_, at a Redemption Price equal to OHSUSA:761725342.6 A-3 the principal amount of such 2015 Series Bonds to be redeemed, without premium, from the Sinking Fund Installments established for such 2015 Series Bonds in the Indenture.] If less than all of the 2015 Series Bonds of a maturity are to be redeemed, the particular 2015 Series Bonds of such maturity to be redeemed shall be selected as provided in the Indenture. The 2015 Series Bonds are payable upon redemption upon surrender thereof at the Principal Office of the Trustee. The Trustee shall give notice, in the name of the City, of the redemption of 2015 Series Bonds, which notice shall be mailed, by first class mail, postage prepaid, not more than sixty (60) nor less than thirty (30) days before the redemption date to the Owners of any 2015 Series Bonds to be redeemed (in whole or in part) at their addresses appearing in the Bond Register. Such notice shall specify the Series and maturity of the Bonds to be redeemed, the redemption date and the place or places where amounts due upon such redemption shall be payable and, if less than all of the 2015 Series Bonds of a maturity are to be redeemed, the letters and numbers or other distinguishing marks of such 2015 Series Bonds so to be redeemed, and, in the case of 2015 Series Bonds to be redeemed in part only, such notice shall also specify the respective portions of the principal amount thereof to be redeemed. Subject to the provisions of the next paragraph, such notice shall further state that on such redemption date there shall become due and payable upon each 2015 Series 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 2015 Series Bond to be redeemed in part only) and that from and after such date interest on such 2015 Series Bond (or the portion of such 2015 Series Bond to be redeemed) shall cease to accrue and be payable. In the event that funds required to pay the Redemption Price of 2015 Series 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 Owners of such 2015 Series Bonds, such notice shall 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 2015 Series Bonds to be redeemed, and that if such moneys shall not have been so received said notice shall be of no force and effect and the City shall not be required to redeem such 2015 Series Bonds. In the event a notice of redemption of 2015 Series Bonds contains such a condition and such moneys are not so received, the redemption of 2015 Series Bonds as described in the conditional notice of redemption shall not be made and the Trustee shall, 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 shall be no redemption of 2015 Series Bonds pursuant to the conditional notice of redemption. Receipt of notice of redemption shall not be a condition precedent to the redemption of 2015 Series Bonds and failure of any Owner of a 2015 Series Bond to receive any such notice or any insubstantial defect in such notice shall not affect the validity of the proceedings for the redemption of 2015 Series Bonds. To the extent and in the manner permitted by the terms of the Indenture, the provisions of the Indenture, or any indenture amendatory thereof or supplemental thereto, may be modified or amended by the City with, in certain cases, the written consent of the Owners of OHSUSA:761725342.6 A-4 at least a majority in principal amount of the Bonds then Outstanding under the Indenture; and, in case less than all of the Bonds would be affected thereby, with such consent of the Owners of a majority in principal amount of the affected Outstanding Bonds; provided, however, that, if such modification or amendment will, by its terms, not take effect so long as any Bonds of any specified like Series and maturity remain Outstanding, the consent of the Owners of such Bonds shall not be required and such Bonds shall not be deemed to be Outstanding for the purpose of the calculation of Outstanding Bonds for purposes of such consent. No such modification or amendment shall permit a change in the terms of any Sinking Fund Installment or the terms of redemption or maturity of the principal of any Bond or of any installment of interest thereon or a reduction in the principal amount or Redemption Price thereof or in the rate of interest thereon without the consent of the Owner of such Bond, or shall reduce the percentage of Bonds the consent of the Owners of which is required to effect any such modification or amendment without the consent of the Owners of all of the Bonds then Outstanding, or shall change or modify any of the rights or obligations of the Trustee or of any Paying Agent without its written assent thereto. The Indenture may also be amended or supplemented without the necessity of the consent of the Owners of the 2015 Series Bonds for any one or more of the purposes specified in the Indenture. This Bond is transferable, as provided in the Indenture, only upon the Bond Register kept for that purpose at the Principal Office of the Trustee, by the registered Owner hereof, or by his duly authorized attorney, upon surrender of this Bond together with a written instrument of transfer satisfactory to the Trustee duly executed by the registered Owner or his duly authorized attorney. Thereupon and upon payment of the charges prescribed in the Indenture a new registered 2015 Series Bond, without coupons, and for the same maturity and aggregate principal amount, shall be issued to the transferee in exchange therefor as provided in the Indenture. The City, the Trustee and any Paying Agent may deem and treat the Person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or Redemption Price hereof and interest due hereon and for all other purposes. The registered Owner of this Bond shall have no right to enforce the provisions of the Indenture or to institute action to enforce the covenants therein, or to take any action with respect to any Event of Default under the Indenture, or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided in the Indenture. In certain events, on the conditions, in the manner and with the effect set forth in the Indenture, the principal of all the Bonds issued under the Indenture and then Outstanding may become or may be declared due and payable before the stated maturity thereof, together with interest accrued thereon. It is hereby certified and recited that all conditions, acts and things required by law, including the City Charter and the Bond Ordinance, and the Indenture to exist, to have happened and to have been performed precedent to and in the issuance of this Bond, exist, have happened and have been performed in due time, form and manner and that the 2015 Series Bonds, together with all other indebtedness of the City, comply in all respects with the applicable laws of the State of California, including the City Charter and the Bond Ordinance. i OHSUSA:761725342.6 A-5 This Bond shall not be entitled to any benefit under the Indenture or be valid or become obligatory for any purpose until this Bond shall have been authenticated by the execution by the Trustee of the Trustee's Certificate of Authentication hereon. IN WITNESS WHEREOF, CITY OF VERNON has caused this Bond to be signed in its name and on its behalf by the manual or facsimile signature of its [Mayor] and the seal (or a facsimile thereof) to be hereunto affixed, imprinted, engraved or otherwise reproduced and attested by the manual or facsimile signature of its City Clerk, as of the Dated Date specified above. CITY OF VERNON [SEAL] By: [Mayor] ATTEST: City Clerk OHSUSA:761725342.6 A-6 TRUSTEE'S CERTIFICATE OF AUTHENTICATION This is one of the 2015 Series Bonds delivered pursuant to the within mentioned Indenture. Dated: , 2015 THE BANK OF NEW YORK MELLON TRUST COMPANY,N.A., as Trustee By: Authorized Signatory OHSUSA:761725342.6 A-7 ASSIGNMENT FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto (Name, Address and Tax Identification or Social Security Number of Assignee) the within Bond of the City of Vernon and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: Notice: The Signature of this assignment and transfer must correspond with the name as written upon the face of this Bond in every particular, without alteration or enlargement or any change whatsoever. Signature guaranteed by: Notice: Signature guarantee shall be made by a guarantor institution participating in the Securities Transfer Agents Medallion Program or in such other guarantee program acceptable to the Trustee. OHSUSA:761725342.6 A-8 EXHIBIT B Exhibit B [Escrow Agreement Attached] OHSUSA:761725340.5 B-1 OH&S Draft of 6/5/15 CITY OF VERNON and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee ESCROW AGREEMENT Dated as of July 1, 2015 Relating to City of Vernon Electric System Revenue Bonds 2009 Series A maturing August 1 in the years [2016 through 2021, inclusive] OHSUSA:761725343.4 TABLE OF CONTENTS Page SECTION 1. DEFINITIONS .................................................................................................... 1 SECTION 2. ESTABLISHMENT, FUNDING AND MAINTENANCE OF ESCROW FUND..................................................................................................................2 SECTION 3. INVESTMENTS OF MONEYS IN THE ESCROW FUND.............................. 3 SECTION 4. PROVISION FOR THE PAYMENT OF THE REFUNDED 2009 SERIES A BONDS; IRREVOCABLE INSTRUCTIONS TO GIVE NOTICES ............................................................................................................ 3 SECTION 5. REINVESTMENT AND TRANSFER OF FUNDS...........................................4 SECTION 6. FEES AND COSTS.............................................................................................4 SECTION 7. INDEMNIFICATION......................................................................................... 5 SECTION 8. RESIGNATION OF TRUSTEE; REPLACEMENT OF TRUSTEE.................. 5 SECTION9. TERMINATION ................................................................................................. 5 SECTION 10. RIGHTS, DUTIES AND OBLIGATIONS OF TRUSTEE................................ 5 SECTION 11. SEVERABILITY................................................................................................ 5 SECTION12. AMENDMENT...................................................................................................6 SECTION 13. EXECUTION OF COUNTERPARTS................................................................ 6 SECTION14. NOTICES ............................................................................................................ 6 SECTION 15. GOVERNING LAW; VENUE............................................................................ 6 SECTION 16. IMMUNITIES AND LIABILITIES OF TRUSTEE........................................... 7 SCHEDULE A INITIAL ESCROW SECURITIES..................................................................A-1 SCHEDULE B ESCROW REQUIREMENTS SCHEDULE....................................................B-1 -i- ESCROW AGREEMENT THIS ESCROW AGREEMENT, dated as of July 1, 2015, by and between the CITY OF VERNON (the "City"), a municipal corporation and chartered city of the State of California, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association organized and existing under and by virtue of the laws of the United States of America, in its capacity as trustee (the"Trustee")under the Indenture (capitalized terms used herein shall have the meanings given such terms pursuant to Section 1 hereof), WITNESSETH: WHEREAS,pursuant to the Indenture, the City authorized and issued its Electric System Revenue Bonds, 2009 Series A, maturing on August 1 in the years [2016 through 2021, inclusive], which maturities remain outstanding in the aggregate principal-amount of$ ; and WHEREAS, for the purpose of providing for the payment of the Refunded 2009 Series A Bonds in accordance with Article IX of the Master Indenture, the City has caused a portion of the proceeds of the 2015 Series Bonds[, and other available funds,] to be deposited into the Escrow Fund as provided in Section 2 hereof; and WHEREAS, the Trustee is to apply amounts in the Escrow Fund to the purchase of the Initial Escrow Securities; and WHEREAS, the Initial Escrow Securities will mature at such times and in such amounts as to provide cash in the Escrow Fund which, together with the other available cash then held by the Trustee in the Escrow Fund, has been certified in the Verification Report to be sufficient to pay the Escrow Requirements when due; I NOW,THEREFORE, the City and the Trustee hereby agree as follows: Section 1. Definitions. Capitalized terms used in this Escrow Agreement and not otherwise defined herein shall have the meanings given such terms in the Indenture of Trust, dated as of September 1, 2008, between the City and The Bank of New York Mellon Trust Company, N.A., as Trustee, as amended and supplemented. The following shall have the meanings set forth below for all purposes of this Escrow Agreement: "2009 Series A Bonds" means the City of Vernon Electric System Revenue Bonds, 2009 Series A. "2015 Series Bonds" means the City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A. "City"means the City of Vernon, California. "Escrow Fund" means the City of Vernon 2015 Electric System Revenue Bonds Escrow Fund established pursuant to Section 2 hereof. i �I OHSUSA:761725343.4 I "Escrow Securities" means, to the extent they are legal investments for funds of the City under the laws of the State of California, non-callable direct obligations of the United States of America. "Escrow Requirements"means the moneys required to: (i) pay the principal of the Refunded 2009 Series A Bonds maturing on August 1 in each of the years [2016 through 2019, inclusive,] as such principal amounts become due; (ii) pay the Redemption Price of the Refunded 2009 Series A Bonds maturing on August 1 in each of the years [2020 and 2021] on the Redemption Date; and (iii) pay the accrued but unpaid interest on the Refunded 2009 Series A Bonds due on each Interest Payment Date for the Refunded 2009 Series A Bonds commencing on August 1, 2015 through the Redemption Date, all as further shown in Schedule B hereto. "Indenture"means the Master Indenture, as amended and supplemented. "Initial Escrow Securities" means the Escrow Securities listed in Schedule A hereto. "Redemption Date"means August 1, 2019. "Redemption Price" means the principal amount of the Refunded 2009 Series A Bonds maturing on August 1 in each of the years [2020 and 2021]. "Refunded 2009 Series A Bonds" means the 2009 Series A Bonds maturing on August 1 in the years [2016 through 2021, inclusive]. "Remaining Escrow Requirements" means, as of any date, the Escrow Requirements coming due on and after such date. "Verification Agent"means , certified public accountants. "Verification Report" means the verification report, dated 2015, prepared by the Verification Agent in connection with the deposit of certain of the 2015 Series Bond proceeds and other funds in the Escrow Fund. Section 2. Establishment, Funding and Maintenance of Escrow Fund. (a) The Trustee agrees to establish a separate irrevocable fund designated as the City of Vernon 2015 Electric System Revenue Bonds Escrow Fund. The Trustee shall maintain the Escrow Fund until the termination of this Escrow Agreement pursuant to Section 9 hereof and hold the Escrow Securities and moneys therein at all times as a special and separate trust fund wholly segregated from all other securities, investments or moneys on deposit with or otherwise held by the Trustee. (b) There has been deposited with the Trustee the sum of$ , which is derived from the proceeds of the 2015 Series Bonds, which amount is to be deposited in the Escrow Fund and invested and disbursed in accordance with this Escrow Agreement. (c) [Other funds to be deposited in the Escrow Fund]. OHSUSA:761725343.4 -2- (d) All Escrow Securities and moneys in the Escrow Fund are hereby irrevocably transferred to the Trustee on behalf of the owners of the Refunded 2009 Series A Bonds to secure the payment of the Escrow Requirements when due in accordance with this Escrow Agreement. (e) The City acknowledges that it has no right, title or interest in or to any money, Escrow Securities, or other property held in the Escrow Fund, notwithstanding any provision of the Indenture or any other document or agreement relating to the Refunded 2009 Series A Bonds to the contrary. Under no circumstances shall any such money, securities, or other property be paid or delivered to or for the order of the City, except that nothing herein shall preclude or limit the transfer of amounts in accordance with Section 5 hereof. Section 3. Investments of Moneys in the Escrow Fund. (a) On the date hereof, $ of the money on deposit in the Escrow Fund is to be invested in the Initial Escrow Securities. The Trustee acknowledges and agrees that it has received the amount set forth in Section 2(b) [and Section 2(c)] above and hereby agrees to use $ of such moneys to purchase on the date hereof the Initial Escrow Securities from the vendor and at the prices set forth in Schedule A hereto, and, subject to the provisions of Section 4 below, to hold the remaining balance of such deposit in the amount of $ uninvested as cash. The City and the Trustee shall each take all remaining necessary action to have the Initial Escrow Securities issued and registered in the name of the Trustee, for the account of the Escrow Fund. (b) The Trustee shall not be liable or responsible for any loss resulting from any investment made pursuant to this Escrow Agreement and in full compliance with the provisions hereof. (c) The Trustee acknowledges receipt of the Verification Report, in satisfaction of the requirements of clause (ii) of subsection (b) of Section 9.02 of the Master Indenture with respect to an Accountant's Certificate, and the Trustee may conclusively rely upon the conclusions of the Verification Report to the effect that the Initial Escrow Securities mature in such amounts and at such times as shall be necessary and sufficient, together with other moneys in the Escrow Fund, to pay the Escrow Requirements when due. (d) The Trustee shall hold all Escrow Securities in the Escrow Fund, and the money received from time to time as principal and interest thereon or otherwise with respect thereto, in trust to be applied as provided in this Escrow Agreement and shall collect the principal of and interest on such Escrow Securities, and all amounts payable with respect thereto, promptly as such amounts become due. Section 4. Provision for the Payment of the Refunded 2009 Series A Bonds; Irrevocable Instructions to Give Notices. (a) The City hereby elects to discharge and provide for the payment of the Refunded 2009 Series A Bonds in accordance with Article IX of the Master Indenture as provided in this Escrow Agreement. The City hereby requests and irrevocably instructs the Trustee, and the Trustee hereby agrees, to apply the moneys in the Escrow Fund to the payment OHSUSA:761725343.4 -3- of the Escrow Requirements when due as follows: (i) pay the principal of the Refunded 2009 Series A Bonds maturing on August 1 in each of the years [2016 through 2019, inclusive,] as such principal amounts become due; (ii) pay the Redemption Price of the Refunded 2009 Series A Bonds maturing on August 1 in each of the years [2020 and 2021] on the Redemption Date; and (iii) pay the accrued but unpaid interest on the Refunded 2009 Series A Bonds due on each Interest Payment Date for the Refunded 2009 Series A Bonds commencing on August 1, 2015 through the Redemption Date. (b) The City hereby further requests and irrevocably instructs the Trustee to give notice of the deposit of funds hereunder pursuant to Section 9.02 of the Master Indenture with respect to the Refunded 2009 Series A Bonds in accordance with Section 9.02 of the Master Indenture. The Trustee is also instructed to provide notice of such deposit in accordance with the Continuing Disclosure Agreement relating to the 2009 Series A Bonds. (c) The City hereby irrevocably designates the Refunded 2009 Series A Bonds maturing on August 1 in each of the years [2020 and 20211 for redemption on the Redemption Date and hereby irrevocably instructs the Trustee to give notice of redemption of such Refunded 2009 Series A Bonds in accordance with Section 4.05 of the Master Indenture. (d) The Trustee acknowledges that this Escrow Agreement constitutes irrevocable instructions to apply the amounts received in connection with the Escrow Securities credited to the Escrow Fund, and any other amounts in the Escrow Fund, to the payment of principal or Redemption Price, as applicable, of and interest on the Refunded 2009 Series A Bonds as set forth in the Escrow Requirements. Section 5. Reinvestment and Transfer of Funds. Any cash received from principal or interest payments on the Escrow Securities which shall be required at any time to pay the Remaining Escrow Requirements shall, at the written request of an Authorized City Representative, be reinvested in Escrow Securities maturing at times and in amounts which, together with the other funds to be available in the Escrow Fund to pay the Remaining Escrow Requirements, shall be sufficient to pay when due the Remaining Escrow Requirements, as evidenced by an Accountant's Certificate. Any money remaining in the Escrow Fund after the payment of all Escrow Requirements shall be transferred to the Interest Account in the Debt Service Fund. Section 6. Fees and Costs. (a) The Trustee's annual fees and costs for acting as Trustee under this Escrow Agreement are to be agreed upon by the Trustee and the City and paid by the City. The annual fees and costs of the Trustee for any other duties to be carried out by it under the Indenture shall continue as previously agreed upon between the Trustee and the City. (b) The Trustee shall also be entitled to additional reasonable fees and reimbursements for costs incurred, to be paid by the City, including but not limited to legal and accountants' services, in connection with any litigation not arising from the Trustee's negligence or willful misconduct which may at any time be instituted involving this Escrow Agreement. OHSUSA:761725343.4 -4- (c) The fees of and the costs incurred by the Trustee shall in no event be deducted or payable from or constitute a lien against the Escrow Fund, any Escrow Securities credited to the Escrow Fund or any moneys in the Escrow Fund, including without limitation the Initial Escrow Securities and any proceeds thereof. Section 7. Indemnification. The City hereby assumes liability for and hereby agrees (whether or not any of the transactions contemplated hereby are consummated) to indemnify, protect, save and hold harmless the Trustee and its respective successors, assigns, agents and servants from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including legal fees and disbursements) of whatsoever kind and nature which may be imposed on, incurred by, or asserted against, at any time, the Trustee (whether or not also indemnified against by any other person under any other agreement or instrument) and in any way relating to or arising out of the execution and delivery of this Escrow Agreement, the establishment of the Escrow Fund, the retention of the moneys therein and any payment, transfer or other application of moneys or securities by the Trustee in accordance with the provisions of this Escrow Agreement, or as may arise by reason of any act, omission or error of the Trustee made in good faith in the conduct of its duties; provided, however, that the City shall not be required to indemnify the Trustee against its own negligence or willful misconduct. The indemnities contained in this Section shall survive the termination of this Escrow Agreement or the resignation or removal of the Trustee. Section 8. Resignation of Trustee; Replacement of Trustee. The Bank of New York Mellon Trust Company, N.A. has entered into this Escrow Agreement in its capacity as Trustee under the Indenture and shall remain a party to this Escrow Agreement until a successor trustee is appointed Trustee under the Indenture. If a successor trustee is appointed as Trustee under the Indenture, such successor shall automatically and without the necessity of any further act by the City, The Bank of New York Mellon Trust Company, N.A. or the successor trustee be deemed a party to this Escrow Agreement in its capacity as Trustee under the Indenture. In that event The Bank of New York Mellon Trust Company, N.A. shall transfer to such successor trustee all Escrow Securities and moneys then held by The Bank of New York Mellon Trust Company, N.A. hereunder. Section 9. Termination. This Escrow Agreement shall terminate when all moneys are transferred from the Escrow Fund as provided herein. Section 10. Rights, Duties and Obligations of Trustee. Subject to the provisions of Sections 3 and 5 hereof, moneys held by the Trustee hereunder are to be held and applied for the payment of the Escrow Requirements when due in accordance with the terms hereof. The rights, duties and obligations of the Trustee shall, except as otherwise expressly provided herein, be governed by the applicable provisions of the Indenture which by this reference are hereby incorporated into this Escrow Agreement as if set forth in full herein. Section 11. Severability. If any section, paragraph, sentence, clause or provision of this Escrow Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, sentence, clause or provision shall not affect any of the remaining provisions of this Escrow Agreement. The provisions of this Escrow Agreement shall be unalterable, subject to the provisions of Section 12 hereof. OHSUSA:761725343.4 -5- Section 12. Amendment. The parties hereto may, without the consent or notice to the Owners of the Refunded 2009 Series A Bonds, enter into such agreements supplemental to this Escrow Agreement as shall not adversely affect the rights of such Owners hereunder for any of the following purposes: (a) to cure any ambiguity or formal defect or omission in this Escrow Agreement; or (b) to grant or confer upon the Trustee for the benefit of the Owners of the Refunded 2009 Series A Bonds any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Trustee. The Trustee shall enter into such agreements only upon receipt by the Trustee of, and shall be entitled to rely conclusively upon, an Opinion of Bond Counsel to the effect that any such agreement complies with this Section. I Section 13. Execution of Counterparts. This Escrow Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original and all of which shall together constitute but one and the same instrument. Section 14. Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given (i) if hand delivered, delivered by courier or by Electronic means of communication, when delivered to the appropriate notice address, or (ii) if mailed by first class mail, postage prepaid, six business days after deposit in the United States mail addressed to the appropriate notice address. The parties listed below may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. Any notice required or permitted hereunder shall be directed to the following notice address: As to the City: City of Vernon 4305 South Santa Fe Avenue Vernon, California 90058 Attention: City Administrator Email: mwhitworth@ci.vemon.ca.us As to the Trustee: The Bank of New York Mellon Trust Company, N.A. 700 South Flower Street, Suite 500 Los Angeles, California 90017-4104 Attention: Corporate Trust Re: City of Vernon 2015 Escrow Fund Email: Section 15. Governing Law; Venue. This Escrow Agreement shall be construed in accordance with and governed by the constitution and the laws of the State of California applicable to contracts made and performed in the State. This Escrow Agreement shall be enforceable in the State, and any action arising out of this Escrow Agreement shall be filed and OHSUSA:761725343.4 -6- maintained in the Los Angeles County Superior Court, Los Angeles, California, unless the City waives this requirement. Section 16. Immunities and Liabilities of Trustee. (a) The Trustee undertakes to perform only such duties as are expressly and specifically set forth in this Escrow Agreement and no implied duties or obligations shall be read into this Escrow Agreement against Trustee. (b) The Trustee shall not have any liability hereunder except to the extent of its own negligence or willful misconduct. In no event shall the Trustee be liable for any special indirect or consequential damages. The Trustee shall have no duty or responsibility under this Escrow Agreement in the case of any default in the performance of the covenants or agreements of any other party contained in the Indenture; provided that, notwithstanding any such default, the Trustee shall apply the moneys in the Escrow Fund to the Escrow Requirements when due as provided in this Escrow Agreement. The Trustee is not required to resolve conflicting demands to money or property in its possession under this Escrow Agreement. (c) The Trustee may consult with counsel of its own choice (which may be counsel to the City), and the written opinion of such counsel shall be full and complete authorization to take or suffer in good faith any action hereunder in accordance with such opinion of counsel. (d) The Trustee shall not be responsible for any of the recitals or representations contained herein or in the Indenture, other than recitals or representations specifically made by the Trustee. (e) The Trustee may become the owner of, or acquire any interest in, any of the Refunded 2009 Series A Bonds or any bonds or other securities of the City with the same rights that it would have if it were not the Trustee and may engage or be interested in any financial or other transaction with the City. (f) The Trustee shall not be liable for the accuracy of any calculations provided as to the sufficiency of the moneys or securities deposited with it to pay the Escrow Requirements when due. (g) The Trustee shall not be liable for any action or omission of the City under this Escrow Agreement or the Indenture. (h) Whenever in the administration of this Escrow Agreement the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by a certificate of any authorized representative of the City, and such certificate shall, in the absence of negligence or willful misconduct on the part of the Trustee, be full warrant to the Trustee for any action taken or suffered by it under the provisions of this Escrow Agreement upon the faith thereof. OHSUSA:761725343.4 -7- (i) The Trustee may conclusively rely as to the truth and accuracy of the statements and correctness of the opinions and the calculations provided to it in connection with this Escrow Agreement and shall be protected in acting, or refraining from acting, upon any written notice, instruction, request, certificate, document or opinion furnished to the Trustee in connection with this Escrow Agreement and reasonably believed by the Trustee to have been signed or presented by the proper party, and it need not investigate any fact or matter stated in such notice, instruction, request, certificate or opinion. 0) The liability of the Trustee to make the payments required by Section 4 and Section 5 shall be limited to the moneys and Escrow Securities in the Escrow Fund. (k) No provision of this Escrow Agreement shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance or exercise of any of its duties hereunder, or in the exercise of its rights or powers. (1) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, custodians or nominees. (m) The Trustee agrees to accept and act upon instructions or directions pursuant to this Escrow Agreement sent by unsecured e-mail, facsimile transmission or other similar unsecured Electronic methods, provided, however, that, the Trustee shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which incumbency certificate may be amended and replaced by the City. If the City elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar Electronic method), the Trustee's reasonable understanding of such instructions shall be deemed controlling. The Trustee shall 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 such instructions conflict or are inconsistent with a subsequent written instruction. The City agrees to assume all risks arising out of the use of such Electronic methods to submit instructions and directions 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 but excluding the risk of the Trustee's negligence or willful misconduct. OHSUSA:761725343.4 -g- IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be signed in their respective names by their duly authorized officers, all as of the day and year first above written. CITY OF VERNON By: [Mark Whitworth, City Administrator] ATTEST: By: Maria E. Ayala, City Clerk APPROVED AS TO FORM: By: City Attorney THE BANK OF NEW YORK MELLON TRUST COMPANY,N.A., as Trustee By: Authorized Officer OHSUSA:761725343.4 -9- Schedule A Initial Escrow Securities Investments to be purchased on , 2015: Type of Interest Security Maturity Date Par Amount Rate Purchase Price Vendor I i OHSUSA:761725343.4 A-1 Schedule B Escrow Requirements Schedule Payment Date Payment Amount I OHSUSA:761725343.4 B-I i i EXHIBIT C Exhibit C [Purchase Contract Attached] I i OHSUSA:761725340.5 C-1 Norton Rose Fulbright US LLP—Draft of 6109115 $[PAR AMOUNT] CITY OF VERNON Electric System Revenue Bonds 2015 Taxable Series A 52015 CONTRACT OF PURCHASE City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Ladies and Gentlemen: The undersigned, J.P. Morgan Securities LLC, as representative (the "Representative") of itself and Citigroup Global Markets Inc., as underwriters (collectively, the "Underwriters"), hereby offers to enter into this Contract of Purchase (this "Purchase Contract") with you, the City of Vernon ("the City"). This offer is made subject to acceptance by the City prior to 11:59 P.M., California time, on the date hereof, and if not so accepted, this offer will be subject to withdrawal by the Underwriters upon notice delivered to the City at any time prior to acceptance by the City. Upon acceptance by the execution hereof, this Purchase Contract shall be in full force and effect in accordance with its terms and shall be binding upon the City and the Underwriters. All capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Official Statement(as defined herein). The Representative has been duly authorized, pursuant to an agreement among underwriters, to execute this Purchase Contract, to act hereunder on behalf of the Underwriters and to take all actions and to waive any condition or requirement required or permitted to be taken or waived hereunder by the Representative or the Underwriters. The Underwriters shall not designate any other representative except upon the approval of the City(which approval shall not be unreasonably withheld). 1. Purchase Sale and Delivery of the Bonds. (a) Subject to the terms and conditions, and in reliance upon the representations, warranties and agreements, set forth herein, the Underwriters hereby jointly and severally agree to purchase, and the City agrees to sell and deliver to the Underwriters, all (but not less than all) of the $ City of Vernon Electric System Revenue Bonds 2015 Taxable Series A (the "Bonds"). The Bonds shall be dated the date of delivery thereof, shall mature on such dates and shall bear interest at such rates, and shall be subject to redemption, all set forth in Schedule I attached hereto. Interest on the Bonds shall be payable semiannually on February 1 and August 1 of each year, commencing , 20_. The purchase price for the Bonds shall be $ (consisting of the $ aggregate principal amount of the Bonds [plus][less] $ of [net] original issue [premium][discount], less $ of Underwriters' discount). (b) The Bonds are to be issued pursuant to Article XI of the Vernon City Code and an Indenture of Trust, dated as September 1, 2008 (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 Fourth Supplemental Indenture of Trust, dated as of , Error!Unknown document property name. 1 2015, providing for the issuance of the Bonds, substantially in the form previously submitted to the Representative, with only such changes therein as shall be mutually agreed upon with only such changes therein as shall be agreed upon by the City and the Representative. Proceeds of the Bonds will be used to (i)refund a portion of the City's Outstanding Electric System Revenue Bonds, 2009 Series A (the "Refunded Bonds"), (ii) finance the costs of certain capital improvements to the City's Electric System by reimbursing the City for such costs, (iii) fund a deposit to the Debt Service Reserve Fund,and(iv)pay costs of issuing the Bonds. The City will undertake, pursuant to a Continuing Disclosure Agreement, dated as of 1, 2015 (the "Continuing Disclosure Agreement"), by and between the City and the Trustee, to provide certain annual financial information and notices of the occurrence of certain events. A form of the Continuing Disclosure Agreement is set forth_ in the Preliminary Official Statement (defined below) and will also be set forth in the Official Statement(defined below). In connection with the refunding of the Refunded Bonds, the City will enter into an Escrow Agreement, dated as of 1, 2015 (the "Escrow Agreement"), by and between the City and The Bank of New York Mellon Trust Company, N.A., as escrow agent(the"Escrow Agent"). The Indenture, the Continuing Disclosure Agreement, the Escrow Agreement and this Purchase Contract are hereinafter referred to collectively as the"Legal Documents." (c) The Underwriters agree to make a bona fide public offering of all of the Bonds at the initial offering prices (or yields) set forth in the Official Statement; provided, that the Bonds may be offered and sold to certain dealers, unit investment trusts and money market funds at prices lower (or yields higher) than such public offering prices (or yields), and the Underwriters may effect transactions that stabilize or maintain the market price of the Bonds. Subsequent to the initial public offering, the Underwriters reserve the right to change the public offering prices (or yields) as they deem necessary in connection with the marketing of the Bonds. (d) At 8:00 A.M., California time, on , 2015, or at such other time or on such earlier or later business day as shall have been mutually agreed upon by the City and the Representative (the "Closing Date"), the City will deliver to the Underwriters at the offices of Orrick, Herrington& Sutcliffe LLP, Los Angeles, California ("Bond Counsel"), the closing documents hereinafter mentioned. The Bonds, registered to Cede& Co. and in definitive form, will be made available to the Underwriters one business day prior to the Closing Date at the offices of Bond Counsel, or at such other place as may be designated by the Representative and shall be subsequently delivered on the Closing Date to The Depository Trust Company("DTC") or to the Trustee for DTC. It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such number on any of the Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the Underwriters to accept delivery of and pay for the Bonds in accordance with the terms of this Purchase Contract. Upon release of the Bonds, the Underwriters will pay the purchase price of the Bonds as set forth in this Section 1, in immediately available funds to the order of the City. The releases and payments referenced in this Section 1 are herein called the"Closing." 2. Use and Preparation of Official Statement. The City hereby ratifies, confirms and approves of the distribution and use by the Underwriters prior to the date hereof of the preliminary official statement dated , 2015, relating to the Bonds (including all appendices thereto, the "Preliminary Official Statement") and the making available of the Preliminary Official Statement to investors prior to the date hereof. The City has deemed the Preliminary Official Statement final as of the date thereof for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 ("Rule Error!Unknown document property name. 2 15c2-12"), except for information permitted to be omitted therefrom in accordance with paragraph(b)(1) of Rule 15c2-12. The City hereby acknowledges that the Preliminary Official Statement has been made available to investors in electronic form. The City hereby agrees to deliver or cause to be delivered to the Underwriters, within seven (7) business days of the date hereof, copies of the final Official Statement relating to the Bonds, dated the date hereof, in the form of the Preliminary Official Statement, with such changes thereto, as may be approved by the Representative (including the appendices thereto and any amendments or supplements as have been approved by the City and the Representative, the "Official Statement"), in sufficient quantity to enable the Underwriters to comply with the rules of the Securities and Exchange Commission and the Municipal Securities Rulemaking Board. The City hereby approves of the distribution and use by the Underwriters of the Official Statement in connection with the offer and sale of the Bonds. At the time of or prior to the Closing Date, the Representative shall file a copy of the Official Statement in printed or electronic form with, and as permitted by,the Municipal Securities Rulemaking Board through its Electronic Municipal Market Access System. The Representative shall advise the City of the date of such filing. 3. Representations Warranties and Agreements of the City. The City represents, warrants and agrees with the Underwriters as follows: (a) The City is, and will be on the Closing Date, duly existing as a chartered city organized under the laws of the State of California (the "State"), and has full legal right, power and authority to cause the Bonds to be authenticated and delivered, to execute and deliver the Legal Documents and to perform its obligations contained herein and therein in accordance with the Act and other applicable laws, and, assuming the Legal Documents constitute the legal, valid and binding agreements of the other respective parties thereto,the Legal Documents will constitute the legal, valid and binding obligations of the City enforceable in accordance with their respective terms; (b) By all necessary official action of the City prior to or concurrently with the acceptance hereof, the City has duly approved the distribution of the Preliminary Official Statement and the execution, delivery and distribution of the Official Statement, and has duly authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained in, the Legal Documents and the consummation by it of all other transactions contemplated by the Legal Documents; (c) The City is not in breach of or default in any material respect under any applicable constitutional provision, law or administrative regulation to which it is subject or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or to which the City or any of its property or assets is otherwise subject, and no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute such a material default or event of default under any such instrument; and the issuance of the Bonds and the execution and delivery of the Official Statement and the Legal Documents and compliance with the provisions on the City's part contained in the Legal Documents, will not in any material respect conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the City under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided in the Indenture or the Escrow Agreement; Error!Unknown document property name. 3 (d) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending or, to the best knowledge of the City threatened, against the City in any material respect affecting the existence of the City or the titles of its officers to their respective offices or affecting or seeking to prohibit, restrain or enjoin the issuance, sale or delivery of the Bonds or contesting or affecting, as to the City, the validity or enforceability of the Bonds or the Legal Documents or the collection of Net Revenues of the Electric System or other amounts pledged or to be pledged to pay the principal of,premium, if any, and interest on the Bonds or contesting the powers of the City or its authority to enter into, adopt or perform its obligations under any of the foregoing, or contesting in any way the completeness or accuracy of the Preliminary Official Statement or the Official Statement, or any amendment or supplement thereto, wherein an unfavorable decision, ruling or finding would likely to result in a material adverse change in the business, properties, assets or financial condition of the Electric System or materially adversely affect the validity or enforceability of the Legal Documents; (e) All authorizations, approvals, licenses, permits, consents and orders of any governmental authority, legislative body, board, agency or commission having jurisdiction of the matter which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would materially adversely affect the due performance by, the City of its obligations in connection with the issuance of the Bonds under the Indenture have been duly obtained, except for such approvals, consents and orders as may be required under the Blue Sky or securities laws of any state in connection with the offering and sale of the Bonds; and, except as described in or contemplated by the Official Statement, all authorizations, approvals, licenses, permits, consents and orders of any governmental authority, board, agency or commission having jurisdiction of the matter which are required for the due authorization by, or which would constitute a condition precedent to or the absence of which would materially adversely affect the due performance by, the City of its obligations under the Legal Documents have been duly obtained; (f) The City will furnish such information, execute such instruments and take such other action in cooperation with the Underwriters as the Representative may reasonably request in order (i)to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States as the Representative may designate and (ii)to determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions, and will use its best efforts to continue such qualification in effect so long as required for distribution of the Bonds; provided, however, that in no event shall the City be required to take any action which would subject it to service of process in any jurisdiction in which it is not now so subject; (g) As of its date and the date hereof, the Preliminary Official Statement (excluding information concerning DTC and the book-entry system as to which no representation is made) did not, except as to the information permitted to be omitted by Rule 15c2-12, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (h) As of the date thereof and at all times subsequent thereto to and including the date which is 25 days following the End of the Underwriting Period (as such term is hereinafter defined) for the Bonds, the Official Statement (excluding information concerning DTC and the book-entry system as to which no representation is made) did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made,not misleading; (i) If between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds, an event occurs which might or would cause the information Error!Unknown document property name. 4 contained in the Official Statement, as then supplemented or amended,to contain an untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the City will notify the Representative, and, if in the opinion of the City, the Representative or their respective counsel, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the City will forthwith prepare and furnish to the Underwriters (at the expense of the City) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Representative) which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to prospective purchasers, not misleading. For the purposes of this subsection, between the date hereof and the date which is 25 days after the End of the Underwriting Period for the Bonds,the City will furnish such information with respect to itself as the Representative may from time to time reasonably request; (j) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (i) of this Section 3, at the time of each supplement or amendment thereto and(unless subsequently again supplemented or amended pursuant to such paragraph) at all times subsequent thereto up to and including the date which is 25 days after the End of the Underwriting Period for the Bonds, the portions of the Official Statement so supplemented or amended(excluding information concerning DTC and the book-entry system as to which no representation is made) will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (k) As used herein and for the purposes of the foregoing, the term "End of the Underwriting Period" for the Bonds shall mean the earlier of(i)the Closing Date unless the City shall have been notified in writing by the Representative on or prior to the Closing Date that the End of the Underwriting Period for the Bonds has not occurred by the Closing Date under Rule 15c2-12, or (ii)the date on which the End of the Underwriting Period for the Bonds has occurred under Rule 15c2-12; provided, however, that the City may treat as the End of the Underwriting Period for the Bonds the date specified as such in a notice from the Representative stating the date which is the End of the Underwriting Period; (1) After the Closing Date, the City will not participate in the issuance of any amendment of or supplement to the Official Statement to which, after being furnished with a copy, the Representative shall reasonably object in writing; (m) The City will apply, or cause the application of, the proceeds of the Bonds in accordance with the Indenture and the Escrow Agreement; (n) Other than as described in the Official Statement, as of the time of acceptance hereof and as of the Closing Date the City does not and will not have outstanding any indebtedness which is secured by a lien on Electric System Revenues superior to or on a parity with the lien of the Bonds thereon; (o) Between the date hereof and the Closing Date, except as contemplated by the Official Statement, the City will not have incurred any material liabilities, direct or contingent, payable from Electric System Revenues or entered into any material transaction in connection with the Electric System in either case other than in the ordinary course of business, and there shall not have been any material adverse change in the financial condition or operations of the Electric System; Error!Unknown document property name. 5 (p) The Bonds, the Legal Documents and the other documents described in the Official Statement conform in all material respects to the descriptions thereof contained in the Official Statement, and the Bonds, when delivered as provided herein, will be validly issued and outstanding obligations of the City entitled to the benefits of the Indenture; (q) The financial statements of the Light and Power Enterprise of the City contained as Appendix A to the Official Statement do and will fairly present the financial position and results of operations of the Electric System as of the dates and for the periods therein set forth in accordance with the accounting principles described in Appendix A to the Official Statement applied consistently, and there has not been a material adverse change in the business, properties or financial condition of the City or the Electric System from that set forth in or contemplated by the Official Statement; (r) The City (i)has all necessary licenses and permits required to carry on and operate all of the facilities, equipment and other property comprising the Electric System the lack of which would materially adversely affect the operations or financial condition of the Electric System, and (ii)has not received any notice of an alleged violation and, to the best knowledge of the City, the City is not in violation of any zoning, land use or other similar law or regulation applicable to any of its property comprising the Electric System that would materially adversely affect its operations or financial condition; (s) Any certificate signed by an authorized officer of the City and delivered to the Underwriters shall be deemed a representation and warranty by the City to the Underwriters as to the statements made therein; and (t) Except as disclosed in the Official Statement, the City has not failed to comply in all material respects with the terms of any continuing disclosure obligation under Rule 15c2-12 within the past five years. 4. Conditions to the Obligations of the Underwriters. The Underwriters hereby enter into this Purchase Contract in reliance upon the representations and warranties of the City contained herein and the representations and warranties of the City to be contained in the documents and instruments to be delivered on or prior to the Closing Date and upon the performance by the City of its obligations both on and as of the date hereof and as of the Closing Date. Accordingly, the Underwriters' obligations under this Purchase Contract to purchase, to accept delivery of and to pay for the Bonds shall be subject, at the option of the Representative, to the accuracy in all material respects of the representations and warranties of the City contained herein as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the City made in any certificate or other document furnished pursuant to the provisions hereof, to the performance by the City of its obligations to be performed hereunder and under such documents and instruments at or prior to the Closing Date, and also shall be subject to the following additional conditions: (a) The Underwriters shall receive, within seven(7)business days of the date hereof and, in any event, at least two (2) business days before Closing, copies of the Official Statement (including all information previously permitted to have been omitted by Rule 15c2-12 and any amendments or supplements as have been approved by the Representative), in such quantity as the Underwriters shall have requested pursuant to Section 2 hereof, (b) The representations and warranties of the City contained herein shall be true and correct on the date hereof and on the Closing Date, as if made on and at the Closing Date; Error!Unknown document property name. 6 (c) As of the Closing Date, the Legal Documents shall have been duly authorized, executed and delivered by the respective parties thereto, and the Official Statement shall have been duly authorized, executed and delivered by the City, all in substantially the forms heretofore submitted to the Representative, with only such changes as shall have been agreed to in writing by the Representative, and such Legal Documents shall be in full force and effect and shall not have been amended, modified or supplemented and the Official Statement shall not have been supplemented or amended, except in any such case as may have been agreed to by the Representative; and there shall be in full force and effect such resolution or resolutions of the City Council of the City as, in the opinion of Bond Counsel, shall be necessary or appropriate in connection with the transactions contemplated hereby; (d) If between the date hereof and the Closing Date, the market price or marketability, at the initial public offering prices set forth in the Official Statement, of the Bonds shall have been materially adversely affected, in the reasonable judgment of the Representative, by reason of any of the following, the Underwriters may terminate their obligation to accept delivery of and make any payment for the Bonds by delivery to the City of a written notice to such effect by the Representative: (1) legislation enacted, introduced in the Congress or recommended for passage by the President of the United States, or a decision rendered by a court of the United States, or an order,ruling,regulation(final,temporary or proposed)or official statement issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter shall have been made or issued to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Indenture is not exempt from qualification under the Trust Indenture Act of 1939, as amended; (2) any of the following shall have occurred (i)the outbreak or escalation in military hostilities or declaration by the United States of a national or international emergency or war, (ii)the sovereign debt rating of the United States is downgraded by any major credit rating agency or a payment default occurs on United States Treasury Obligation, (iii) a default with respect to the debt obligations of, or the institution of proceedings under any federal bankruptcy laws by or against, any state of the United States or any city, county or political subdivision located in the United States having a population of over 500,000, or (iv) any other calamity or crisis the effect of any of which on the financial markets is such as to make it impracticable or inadvisable to proceed with the offering or delivery of the Bonds as contemplated hereby or by the Official Statement; (3) the declaration of a general banking moratorium by federal,New York or California authorities, or the general suspension of trading on any national securities exchange, or a major financial crisis or a material disruption in commercial banking or securities settlement or clearances services shall have occurred; (4) the imposition by the New York Stock Exchange or other national securities exchange, or any governmental authority having jurisdiction of the subject matter, of any material restrictions not now in force with respect to the Bonds or obligations of the general character of the Bonds or securities generally, or the material increase of any such restrictions now in force, including those relating to the extension of credit by, or the charge to the net capital requirements of,the Underwriters; (5) an order, decree or injunction of any court of competent jurisdiction, or order, ruling, regulation or official statement by the Securities and Exchange Commission, or any Error!Unknown document property name. 7 other governmental agency having jurisdiction of the subject matter, issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, including any or all underlying obligations, as contemplated hereby or by the Official Statement, is or would be in violation of the federal securities laws as amended and then in effect; (6) except as disclosed in or contemplated by the Official Statement, any material adverse change in the business, properties, assets or financial condition of the Electric System of the City; (7) the suspension,withdrawal or downgrading of any rating of the Bonds or any other outstanding debt of the City's Electric System by any rating agency then rating such Bonds or other outstanding debt of the City's Electric System, or any official action by any rating agency then rating the Bonds to place the Bonds on"Credit Watch" for possible downgrade or on "Negative Outlook" after the date hereof (and provided that the Bonds were not on "Credit Watch"or"Negative Outlook"prior to the date hereof); or (8) an event shall occur or any information shall become known which makes untrue in any material respect any statement or infonnation contained in the Official Statement, or has the effect that the Official Statement contains any untrue statement of material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and, in either such event, (a)the City refuses to permit the Official Statement to be supplemented to supply such statement or information or (b) the effect of the Official Statement as so supplemented is, in the reasonable judgment of the Representative, to materially adversely affect the marketability of the Bonds or the market price thereof. (e) At or prior to the Closing, the Underwriters shall receive the following documents, in each case satisfactory in form and substance to the Representative and Underwriters' Counsel: (1) the approving opinion of Bond Counsel, dated the Closing Date and addressed to the City, substantially in the form attached as Appendix D to the Official Statement; (2) a supplemental opinion of Bond Counsel, dated the Closing Date and addressed to the Underwriters,substantially in the form attached hereto as Exhibit A; (3) an opinion of the City Attorney or other counsel to the City acceptable to the Representative, dated the Closing Date and addressed to the Underwriters, substantially in the form attached hereto as Exhibit B; (4) an opinion of counsel to the Trustee, dated the Closing Date and addressed to the City and the Underwriters,to the effect that: (i)the Trustee is a national banking association duly organized and validly existing under the laws of the United States of America; (ii)the Trustee is duly eligible and qualified to act as Trustee under the Indenture and as Escrow Agent under the Escrow Agreement; (iii)the Trustee has all requisite power, authority and legal right to execute and deliver the Indenture, the Escrow Agreement and the Continuing Disclosure Agreement and to perform its obligations under such documents; and (iv)the Trustee has duly executed and delivered the Indenture, the Escrow Agreement and the Continuing Disclosure Agreement and assuming that such documents constitute the legal, valid and binding agreements of the other respective parties thereto, such documents are the legal,valid and binding agreements i Error!Unknown document property name. 8 of the Trustee, enforceable in accordance with their terms, except to the extent enforceability thereof may be subject to (a)bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws affecting creditors' rights and remedies heretofore or hereafter enacted, and (b)the application of equitable principles and the exercise of judicial discretion in appropriate cases; (5) an opinion of Norton Rose Fulbright US LLP, Underwriters' Counsel, dated the Closing Date and addressed to the Underwriters, to the effect that (i)the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended; (ii) assuming the due authorization, execution and delivery of the Continuing Disclosure Agreement by the District and the Trustee and the enforceability thereof, the Continuing Disclosure Agreement is in a form which satisfies the requirements of section (b)(5)(i) of Rule 15c2-12 of the Securities Exchange Act of 1934, as amended; and (iii) on the basis of the information made available to such firm in the course of acting as counsel to the Underwriters (but without having undertaken to determine or verify independently, or assuming any responsibility for, the accuracy, completeness or fairness of any of the statements contained in the Preliminary Official Statement or the Official Statement), no facts have come to the attention of the personnel in such firm directly involved in rendering legal advice and assistance to the Underwriters in connection with the preparation of the Preliminary Official Statement and the Official Statement that cause them to believe that (a)the Preliminary Official Statement as of its date or as of the date of this Purchase Contract (excluding therefrom financial, demographic and statistical data; forecasts, projections, estimates, assumptions and expressions of opinions; statements relating to DTC, Cede & Co. and the operation of the book-entry system; statements relating to the treatment of the Bonds or the interest, discount or premium, if any, thereon or therefrom for tax purposes under the law of any jurisdiction; and the statements contained in the Preliminary Official Statement under the captions "TAX MATTERS," and in the Appendices to the Preliminary Official Statement; as to all of which they express no view) contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading, except for such information as is permitted to be excluded from the Preliminary Official Statement pursuant to Rule 15c2-12 of the Securities Exchange Act of 1934, as amended, including but not limited to information as to pricing, yields, interest rates, maturities, amortization, redemption provisions, debt service requirements, Underwriter's discount and CUSIP numbers or (b)the Official Statement as of its date or as of the Closing Date (excluding therefrom financial, demographic and statistical data; forecasts, projections, estimates, assumptions and expressions of opinions; statements relating to DTC, Cede & Co. and the operation of the book-entry system; statements relating to the treatment of the Bonds or the interest, discount or premium, if any, thereon or therefrom for tax purposes under the law of any jurisdiction; and the statements contained in the Official Statement under the captions "TAX MATTERS," and in the Appendices to the Official Statement; as to all of which they express no view) contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made,not misleading; (6) A defeasance opinion of Bond Counsel, dated the Closing Date and addressed to the Trustee, to the effect that the Refunded Bonds have been deemed to have been paid and are no longer outstanding pursuant to the terms of the Indenture; (7) a certificate or certificates, dated the Closing Date, of the City executed by its City Administrator or other appropriate official, to the effect that(i)the representations and Error!Unknown document property name. 9 warranties of the City in this Purchase Contract are true and correct on and as of the Closing Date as if made on and as of the Closing Date, and the City has complied with and performed all of its covenants and agreements in this Purchase Contract on its part to be complied with and performed at or prior to the Closing; (ii)since June 30, 2014, except as referred to in or as contemplated by the Official Statement, with respect to its Electric System, the City has not incurred any financial liabilities, direct or contingent, or entered into any transactions and there has not been any adverse change in the condition, financial or physical, of the Electric System, in any case that would materially and adversely affect the ability of the City to meet its obligations under the Indenture; (iii) other than as described in the Official Statement, there is no action, suit, proceeding, inquiry or investigation pending or, to the best knowledge of such official,threatened (a)in any way questioning the corporate existence of the City or the titles of the officers of the City to their respective offices; (b) seeking to restrain or enjoin the delivery of the Bonds, or the collection of Net Revenues of the Electric System or other amounts pledged to pay the principal of, premium, if any, and interest on such Bonds or the pledge thereof, (c)in any way contesting or affecting the validity of the Bonds or the Legal Documents; (d)in any way contesting the powers of the City or any authority for the issuance and delivery of the Bonds and the performance of its obligations contained therein or the execution and delivery of the Legal Documents and the performance of its obligations contained therein, nor to the best knowledge of such official after reasonable investigation, is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would make invalid or materially adversely affect the authorization, execution, delivery or performance by the City of the foregoing; (e)which would be likely to result in a material adverse change in the business, properties, assets or the financial condition of the Electric System or which would be likely to have a material adverse effect on the ability of the City to meet its obligations under the Indenture; or (f) asserting that the Official Statement contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading, which certificate shall be in form and substance acceptable to the Representative(but in lieu of such certificate, the Representative may in its sole discretion accept an opinion of Bond Counsel or Counsel to the City, acceptable to the Representative in form and substance, that in their opinion the issues raised in any such pending or threatened litigation are without substance or that the contentions of any plaintiffs therein are without merit); (8) A certificate, dated the Closing Date, signed by a duly authorized official of the Trustee, satisfactory in form and substance to the Representative, to the effect that: (i)the Trustee is a national banking association organized and existing under and by virtue of the laws of the United States of America, having the full power and being qualified to enter into and perform its duties under the Indenture, the Escrow Agreement and the Continuing Disclosure Agreement; (ii)the Trustee is duly authorized to enter into the Indenture, the Escrow Agreement and the Continuing Disclosure Agreement and to authenticate and deliver the Bonds to the Underwriters pursuant to the terms of the Indenture; (iii)the execution and delivery of the Indenture,the Escrow Agreement and the Continuing Disclosure Agreement and compliance with the provisions on the Trustee's part contained therein, and the authentication and delivery of the Bonds will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Trustee is a party or is otherwise subject (except that no representation, warranty or agreement is made with respect to any federal or state securities or Blue Sky laws or regulations), nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets held by the Trustee pursuant to the lien created by the Indenture under the terms of any such law, administrative regulation, Error!Unknown document property name. 10 judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Indenture and the Escrow Agreement; and (iv)there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency,public board or body, served on, or, to the best knowledge of such officer, threatened against, the Trustee, affecting the existence of the Trustee or the titles of its officers to their respective offices, or in any way contesting or affecting the validity or enforceability of the Indenture or the Escrow Agreement against the Trustee, or contesting the power of the Trustee or its authority to enter into, adopt or perform its obligations under the Indenture or the Escrow Agreement, wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the Indenture or the Escrow Agreement against the Trustee or the authentication and delivery of the Bonds; (9) A certified copy of the general resolution of the Trustee authorizing the execution and delivery of the Indenture, the Escrow Agreement and the Continuing Disclosure Agreement; (10) The Official Statement and each supplement or amendment, if any, thereto, executed by the City; (11) Copies of each of the Legal Documents, each duly executed and delivered by the respective parties thereto; (12) certified copies of all proceedings relating to the authorization and issuance of the Bonds certified by the City Administrator or other appropriate official of the City; (13) a certificate of the City (or an Independent Engineer, as such term is defined in the Indenture)pursuant to Section 2.07(e) of the Indenture; (14) evidence that the ratings on the Bonds of " " from Standard and Poor's Ratings Services [and" " from ] as described in the Official Statement are in full force and effect as of the Closing Date; (15) the Blanket Issuer Letter of Representations of the City; (16) a copy of any Blue Sky Memorandum with respect to the Bonds, prepared by Counsel to the Underwriters; (17) A copy of the Notice of Final Sale required to be delivered to the California Debt and Investment Advisory Commission pursuant to Section 8855 of the California Government Code; (18) A report, dated the date of Closing Date, from , Verification Agent, stating that the firm has verified the mathematical accuracy of certain computations relating to the adequacy of the amounts deposited pursuant to the Escrow Agreement to pay interest on the Refunded Bonds as the same shall become due on and before the applicable maturity or redemption date for such Refunded Bonds and the principal or redemption price of the Refunded Bonds to be paid or redeemed on any such maturity or redemption date therefor; and (19) such additional certificates, instruments and other documents as the Representative or Bond Counsel may reasonably deem necessary to evidence the truth and Error!Unknown document property name. 11 accuracy as of the Closing Date of the City's representations and warranties contained in this Purchase Contract and the due performance or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City pursuant to this Purchase Contract. If the City shall be unable to satisfy the conditions to the obligations of the Underwriters to purchase, accept delivery of and pay for the Bonds contained in this Purchase Contract or if the obligations of the Underwriters to purchase, accept delivery of and pay for the Bonds shall be subject to termination by the Underwriters for any reason permitted by this Purchase Contract, this Purchase Contract and all obligations of the Underwriters hereunder may, at the option of the Underwriters, be terminated by the Representative at, or at any time prior to, the Closing Date by written notice to the City, and, upon any such termination, neither the Underwriters nor the City shall have any further obligations hereunder. 5. Expenses. (a) The Underwriters shall be under no obligation to pay, and the City shall pay, any expenses incident to the performance of the City's obligations hereunder including, but not limited to: (i)the cost of preparation, printing and distribution of the Legal Documents, the Preliminary Official Statement, the Official Statement and any supplements or amendments thereto, including a reasonable number of certified or conformed copies thereof, (ii)the cost of preparation and printing of the Bonds; (iii)the fees and disbursements of Orrick, Herrington& Sutcliffe LLP, Bond Counsel; (iv)the fees and disbursements of any engineers, accountants and other experts, consultants or advisors retained by the City; (v) fees for bond ratings (which include fees of rating agencies and travel expenses of the City); and (vi) all expenses incurred on behalf of City personnel with respect to the financing, including(a) air travel and hotel costs in connection with the pricing of the Bonds,any investor meetings, any rating agency trips and the Closing, (b)meals and transportation for City personnel during such trips, (e) expenses of City personnel related to attending working group meetings, such as parking, meals and transportation, and (d) any other miscellaneous costs related to the Closing. (b) The Underwriters shall pay: (i)the cost of preparation and printing of this Purchase Contract and the Preliminary Blue Sky Memorandum; (ii)all advertising expenses and Blue Sky filing fees in connection with the public offering of the Bonds; (iii) fees, if any, payable to the California Debt and Investment Advisory Commission, the Municipal Securities Rulemaking Board and DTC; and (iv)all other expenses(including travel and other out-of-pocket expenses)incurred by them in connection with the public offering of the Bonds and the transactions contemplated by this Purchase Contract not outlined in (a) above, including the fees and disbursements of Underwriters' Counsel. The City acknowledges and agrees that some or all of the expenses (including all normally occurring out-of-pocket expenses) to be paid by the Underwriters may be included as part of the expense component of the underwriters' discount or may be reimbursed to the Underwriters as out-of-pocket expenses. 6. Notices. Any notice or other communication to be given to the City under this Purchase Contract may be given by delivering the same in writing to: City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058, Attention: ; and any notice or other communication to be given to the Underwriters under this Purchase Contract may be given by delivering the same in writing to the Representative: J.P. Morgan Securities LLC, 560 Mission Street, San Francisco, CA 94105, Attention: 7. Survival of Representations and Warranties The City's representations, warranties and agreements contained in this Purchase Contract or made in any certificate delivered hereunder shall remain operative and in full force and effect,regardless of. (i)any investigations or statements made by or Error!Unknown document property name. 12 I II on behalf of the Underwriters; and (ii)delivery of and payment for the Bonds pursuant to this Purchase Contract. 8. No Fiduciary. The City acknowledges and agrees that (i)the purchase and sale of the Bonds pursuant to this Purchase Contract is an arm's-length commercial transaction between the City and the Underwriters in which each Underwriter is acting solely as a principal and is not acting as the agent, fiduciary, financial advisor or municipal advisor of the City, (ii)the Underwriters have not assumed an advisory or fiduciary responsibility in favor of the City with respect to the offering contemplated hereby or the discussions, undertakings and procedures leading thereto (irrespective of whether the Underwriters have provided other services or are currently providing other services to the City on other matters); (iii)the Underwriters have no obligation to the City with respect to the offering contemplated hereby except the obligations expressly set forth in this Purchase Contract; (iv) the Underwriters have financial and other interests that differ from those of the City; and (iv)the City has consulted with its own legal, accounting,tax, financial and other advisors to the extent it deemed appropriate. 9. Waiver of Jury Trial. TO THE EXTENT PERMITTED BY LAW, THE CITY AND THE UNDERWRITERS HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY THE CITY OR THE UNDERWRITERS MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS PURCHASE CONTRACT OR ANY TRANSACTIONS RELATED HERETO. 10. Governing Law. This Purchase Contract shall be construed in accordance with and governed by the Constitution and laws of the State of California applicable to contracts made and performed in the State. 11. Counterpart Signatures. This Purchase Contract may be executed in several counterparts, each of which shall be an original, and all of which shall constitute but one and the same instrument. [Remainder of page intentionally left blank.] I Error!Unknown document property name. 13 I 12. Parties in Interest. This Purchase Contract, when accepted by the City in writing as heretofore specified, shall constitute the entire agreement between the City and the Underwriters in connection with the subject matter hereof and is made solely for the benefit of the City and the Underwriters (including any successor in business of the Underwriters). No other person shall acquire or have any right hereunder or by virtue hereof. Very truly yours, J.P.MORGAN SECURITIES LLC CITIGROUP GLOBAL MARKETS INC. By: J.P.MORGAN SECURITIES LLC, as Representative of the Underwriters By: Authorized Representative Accepted on , 2015 CITY OF VERNON By: [Title] ATTEST: By: City Clerk Error!Unknown document property name. 14 SCHEDULE 1 $[PAR AMOUNT] CITY OF VERNON Electric System Revenue Bonds 2015 Taxable Series A MATURITY SCHEDULE Maturity Date (August 1) Principal Amount Interest Rate Yield REDEMPTION PROVISIONS Optional Redemption. [The Bonds 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 any date on and after August 1, 20 , in the principal amounts of such maturities as may be specified by the City, at a redemption price equal to the principal amount of Bonds to be redeemed,without premium,plus accrued,unpaid interest to the redemption date.] OR [The Bonds 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 any date, at a redemption price equal to the 2015 Make Whole Redemption Price(defined below) of the Bonds to be redeemed.] "2015 Make Whole Redemption Price" means a redemption price, calculated by the Independent Investment Banker, equal to the greater of(i)one hundred percent (100%) of the principal amount of the Bonds to be redeemed; or (ii)the sum of the present values of the remaining scheduled payments of principal and interest on the Bonds to be redeemed (exclusive of interest accrued to the date fixed for redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus basis points, plus in each case, accrued and unpaid interest on the Bonds being redeemed to the date fixed for redemption. {add definitions for Independent Investment Banker and Treasury Rate if applicable) Error!Unknown document property name. Sch. 1, Page 1 Mandatory Sinking Fund Redemption. [The Bonds maturing on August 1, 20_are also subject to mandatory redemption in part prior to their stated maturity from sinking fund installments due on August 1 of each of the years set forth in the following table in the respective amounts set forth opposite such years in said table, at a redemption price equal to the principal amount of the Bonds to be redeemed, without premium:] Bonds maturing August 1, Sinking Fund Installment Due Date Sinking Fund (August 1) Installment T Maturity Error!Unknown document property name. Sch. 1,Page 2 EXHIBIT A [Letterhead of Orrick,Herrington& Sutcliffe LLP] [Closing Date] J.P. MORGAN SECURITIES LLC, as Representative of the Underwriters Los Angeles, California City of Vernon Electric System Revenue Bonds 2015 Taxable Series A (Supplemental Opinion) Ladies and Gentlemen: This letter is addressed to you, as representative of the underwriters, pursuant to Section 4(e)(2) of the Contract of Purchase, dated [Contract of Purchase Date], 2015 (the "Contract of Purchase"), between J.P. Morgan Securities LLC, on behalf of itself and as representative of the underwriters named therein (the "Underwriters"), and the City of Vernon, California (the "City"), providing for the purchase of $ aggregate principal amount of City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A (the "2015 Series Bonds"). The 2015 Series Bonds are being issued pursuant to the City of Vernon Municipal Facilities Revenue Bond Law, constituting Article XI of the Vernon City Code, and an Indenture of Trust, dated as of September 1, 2008 (as amended and supplemented, the "Indenture"), between the City and The Bank of New York Mellon Trust Company,N.A. (the"Trustee"), including as supplemented by the Fourth Supplemental Indenture of Trust, dated as of 1, 2015, between the City and the Trustee. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Indenture or, if not defined in the Indenture,in the Contract of Purchase. We have delivered our final legal opinion (the "Bond Opinion") as bond counsel to the City concerning the validity of the 2015 Series Bonds and certain other matters, dated the date hereof and addressed to the City. You may rely on such opinion as though the same were addressed to you. In connection with our role as bond counsel to the City, we have reviewed the Contract of Purchase, certain portions of a printed copy of the electronic version of the Preliminary Official Statement, dated and posted on , 2015 (the "Preliminary Official Statement"), relating to the 2015 Series Bonds and of the printed version of the Official Statement, dated [Contract of Purchase Date], 2015 (the"Official Statement"),relating to the 2015 Series Bonds,the Continuing Disclosure Agreement, the documents, certificates, opinions and matters mentioned in the second paragraph of our Bond Opinion, and such other documents, opinions and matters to the extent we deemed necessary to provide the opinions set forth in the numbered paragraphs below. The opinions and conclusions expressed herein are based on an analysis of existing laws, regulations, rulings and court decisions and cover certain matters not directly addressed by such authorities. Such opinions or conclusions may be affected by actions taken or omitted or events occurring after the date hereof. We have not undertaken to determine, or to inform any person, whether any such Error!Unknown document property name. A-1 actions are taken or omitted or events do occur or any other matters come to our attention after the date hereof. We have assumed the genuineness of all documents and signatures presented to us (whether as originals or as copies) and the due and legal execution and delivery thereof by, and validity against, any parties other than the City. We have assumed, without undertaking to verify, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinions, referred to in the third paragraph hereof. We have further assumed compliance with all covenants and agreements contained in such documents. In addition, we call attention to the fact that the rights and obligations under the 2015 Series Bonds, the Indenture, the Continuing Disclosure Agreement and the Contract of Purchase and their enforceability may be subject to bankruptcy, insolvency, reorganization, receivership, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against cities in the State of California. We express no 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 foregoing documents, nor do we express any opinions with respect to the state or quality of title to or interest in any assets described in or as subject to the lien of the Indenture or the accuracy or sufficiency of the description contained therein of, or the remedies available to enforce liens on, any such assets. Finally, we undertake no responsibility for the accuracy, completeness or fairness of the Official Statement or other offering material relating to the 2015 Series Bonds and express no opinion relating thereto except as expressly set forth in numbered paragraph 2 below. Based on and subject to the foregoing, and in reliance thereon, as of the date hereof, we are of the following opinions: 1. The 2015 Series Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended. 2. The statements contained in the Official Statement under the captions "INTRODUCTION," "THE 2015 BONDS," "SECURITY AND SOURCES OF PAYMENT,"and"TAX MATTERS," and in "APPENDIX B — SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE," "APPENDIX D—PROPOSED FORM OF OPINION OF BOND COUNSEL" and "APPENDIX E — FORM OF CONTINUING DISCLOSURE AGREEMENT," excluding any material that may be treated as included under such captions by cross-reference or reference to other documents or sources, insofar as such statements expressly summarize certain provisions of the Indenture, the Continuing Disclosure Agreement and the form and content of our Bond Opinion, are accurate in all material respects. 3. The Contract of Purchase and the Continuing Disclosure Agreement have each been duly executed and delivered by the City and each of the Contract of Purchase and the Continuing Disclosure Agreement is a valid and binding agreement of the City. No opinion regarding the adequacy of the Continuing Disclosure Agreement for purposes of S.E.C. Rule 15c2-12 may be inferred from this opinion. We are not passing upon and do not assume any responsibility for the accuracy (except as explicitly stated in numbered paragraph 2 above), completeness or fairness of any of the statements contained in the Preliminary Official Statement or in the Official Statement and make no representation that we have independently verified the accuracy, completeness or fairness of any such statements. We do not assume any responsibility for any electronic version of the Official Statement, and assume that any Error!Unknown document property name. A-2 such version is identical in all respects to the printed version. In our capacity as bond counsel to the City in connection with issuance of the 2015 Series Bonds, we participated in conferences with your representatives, your counsel, representatives of the City, certain consultants to the City, counsel to the City and others, during which conferences the contents of the Preliminary Official Statement or the Official Statement and related matters were discussed. Based on our participation in the above-referenced conferences (which did not extend beyond the date of the Official Statement), and in reliance thereon, on oral and written statements and representations of the City and others and on the records, documents, certificates, opinions and matters herein mentioned (as set forth above), subject to the limitations on our role as bond counsel to the City, we advise you as a matter of fact and not opinion that(a) as of[Contract of Purchase Date], 2015, no facts had come to the attention of the attorneys in our firm rendering legal services with respect to the Preliminary Official Statement which caused us to believe as of that date that the Preliminary Official Statement contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (b) as of the date of the Official Statement and as of the date hereof, no facts had come to the attention of the attorneys in our firm rendering legal services with respect to the Official Statement which caused us to believe as of the date of the Official Statement and as of the date hereof that the Official Statement [as supplemented] contained or contains any untrue statement of a material fact or omitted or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, we expressly exclude from the scope of this paragraph and express no view or opinion about (i) with respect to the Preliminary Official Statement, any difference in information contained therein compared to what is contained in the Official Statement,whether or not related to pricing or sale of the Series 2015 Bonds, and whether any such difference is material and should have been included in the Preliminary Official Statement, and(ii)with respect to both the Preliminary Official Statement and the Official Statement, any CUSIP numbers, financial, accounting, statistical, engineering, demographic or economic data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion, any management analysis or discussion or any information about book-entry, The Depository Trust Company, ratings, Rating Agencies, the Underwriters, underwriting and the information contained in Appendices A and C, included or referred to therein or omitted therefrom. No responsibility is undertaken or view expressed with respect to any other disclosure document,materials or activity, or as to any information from another document or source referred to by or incorporated by reference in the Preliminary Official Statement or the Official Statement. This letter is furnished by us as bond counsel to the City. No attorney-client relationship has existed or exists between our firm and the Underwriters in connection with the 2015 Series Bonds or by virtue of this letter. We disclaim any obligation to update this letter. This letter is delivered to you as representative of the Underwriters of the 2015 Series Bonds and is solely for your benefit as such representative and is not to be used, circulated, quoted or otherwise referred to or relied upon for any other purpose or by any other person. This letter is not intended to, and may not, be relied upon by owners of the 2015 Series Bonds. Very truly yours, ORRICK,HERRINGTON& SUTCLIFFE LLP Error!Unknown document property name. A-3 EXHIBIT B FORM OF OPINION OF CITY ATTORNEY [Closing Date] J.P.MORGAN SECURITIES LLC, as Representative of the Underwriters Los Angeles, California Re: $ City of Vernon Electric System Revenue Bonds 2015 Taxable Series A Ladies and Gentlemen: I am the City Attorney of the City of Vernon(the"City") and as such I have served as counsel to the City in connection with the issuance of the City's $ Electric System Revenue Bonds, 2015 Taxable Series A (the "Bonds"). As such counsel, I have examined and am familiar with (i)those documents relating to the existence, organization and operation of the City; (ii)all necessary documentation of the City relating to the authorization, execution and delivery of (a)the Indenture of Trust, dated as September 1, 2008, by and between the City and The Bank of New York Mellon Trust Company, N.A., as trustee, as amended and supplemented, including as supplemented by the Fourth Supplemental Indenture of Trust, dated as of , 2015, providing for the issuance of the Bonds (as so amended and supplemented, the "Indenture"), (b)the Escrow Agreement, dated as of , 2015, (the "Escrow Agreement") by and between the City and the Trustee, (c)the Continuing Disclosure Agreement, dated as of , 2015 (the "Continuing Disclosure Agreement"), between the City and the Trustee, as dissemination agent; and(d) the Contract of Purchase, dated , 2015 with respect to the Bonds (the "Purchase Contract"), between the City and J.P. Morgan Securities LLC, as Representative of itself and Citigroup Global Markets Inc., as underwriters (the "Underwriters"); and (iii)a Preliminary Official Statement of the City, dated 2015 (the "Preliminary Official Statement") and an Official Statement of the City, dated , 2015 (the "Official Statement"), relating to the Bonds. The Indenture, the Escrow Agreement, the Continuing Disclosure Agreement and the Purchase Contract are collectively referred to herein as the"Legal Documents." I am of the opinion that: 1. The City is a chartered city, duly created, organized and existing under the Constitution and laws of the State of California and duly qualified to furnish electric service within said City. 2. The resolution of the City (the "Resolution") approving and authorizing the execution and delivery of Legal Documents and approving and authorizing the distribution of the Official Statement by the City was duly adopted at a meeting of the City Council of the City, which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout. Error!Unknown document property name. B-1 3. The City has the authority and right to execute, deliver and perform its obligations under the Legal Documents, and the City has complied in all material respects with the provisions of applicable law in all matters relating to the transactions contemplated by the Legal Documents. 4. The Official Statement and the Legal Documents have been duly authorized, executed and delivered by the City and, assuming that the Legal Documents constitute the legal, valid and binding agreements of the other respective parties thereto, the Legal Documents constitute the legal, valid and binding agreements of the City enforceable in accordance with their terms, subject to laws relating to bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights generally and to the application of equitable principles if equitable remedies are sought and to limitations on legal remedies against municipal corporations in the State. 5. No approval, consent or authorization of any governmental or public agency, authority or person is required for the execution and delivery by the City of the Legal Documents or the performance by the City of its obligations thereunder or the execution and delivery, on the part of the City, of the Bonds. Under the laws of the State of California, the City has the authority to determine, fix, impose and collect rates and charges for electric service and is not presently subject to the regulatory jurisdiction of any state, regional or local governmental regulatory authority other than to the extent described in the Preliminary Official Statement and the Official Statement. 6. The execution and delivery of the Legal Documents by the City and compliance with the provisions thereof will not conflict with or constitute a breach of or default under any instrument relating to the organization, existence or operation of the City, or commitment, agreement or other instrument to which the City is a party or by which it or its property is bound or affected, or any ruling, regulation, ordinance,judgment, order or decree to which the City or any of its officers in their respective capacities as such are subject or any provision of the laws of the State of California relating to the City and its affairs. 7. There is no action, suit, proceeding, inquiry or investigation at law or in equity, or before any court, public board or body, pending or, to the best of my knowledge, threatened against or affecting the City or any entity affiliated with the City or any of its officers in their respective capacities as such (nor to the best of my knowledge, is there any basis therefor) that questions the powers of the City referred to in paragraph 3 above or in connection with the transactions contemplated by the Legal Documents, or the validity of the proceedings taken by the City in connection with the authorization, execution or delivery of the Legal Documents, or wherein any unfavorable decision, ruling or finding would adversely affect the transactions contemplated by the Legal Documents, or that, in any way, would adversely affect the validity or enforceability of the Legal Documents or, in any material respect, the ability of the City to perform its obligations under the Legal Documents. 8. Based upon my participation in the preparation of the Preliminary Official Statement and the Official Statement and without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Preliminary Official Statement or the Official Statement, nothing has come to my attention which would lead me to believe that (i)the Preliminary Official Statement (excluding therefrom the financial statements and the statistical data and the information concerning DTC and the book-entry system included therein, the information under the caption"UNDERWRITING" and the Appendices thereto, as to which no view is expressed) as of its date and as of , 2015, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. or (ii)the Official Statement (excluding therefrom the financial statements and the statistical data and the information concerning DTC and the book-entry system included therein, the information under the caption "UNDERWRITING" and the Appendices Error!Unknown document property name. B-2 thereto, as to which no view is expressed) as of its the date and as of the date hereof, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Capitalized terms used herein not otherwise defined shall have the meanings ascribed thereto in the Purchase Contract. Respectfully submitted, i i I i i I I Error!Unknown document property name. B-3 i EXHIBIT D Exhibit D [Preliminary Official Statement Attached] OHSUSA:761725340.5 D-1 OH&S Draft of 6/9/15 PRELIMINARY OFFICIAL STATEMENT DATED 12015 ;W ISSUE—FULL BOOK-ENTRY ONLY RATINGS: S&P: (See"RATINGS"herein) y In the opinion of Orrick, Herrington &Sutcliffe LLP, Bond Counsel to the City, based on an analysis of existing laws, N regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the 2015 Bonds is exempt from State of'California personal income taxes. Bond T Counsel observes that interest on the 2015 Bonds is not excluded from gross income for federal income tax purposes under Section ? 103 of the Internal Revenue Code of 1986. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the 2015 Bonds. See "TAXMATTERS"herein. ; o $[PAR AMOUNT] CITY OF VERNON Electric System Revenue Bonds 2015 Taxable Series A s g Dated: Date of Delivery Due: August 1, as shown on the Inside Cover This cover page contains certain information for general reference only. It is not intended to be a summary of the 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 must read the entire Official Statement to obtain information essential to the making of an o informed investment decision. Capitalized terms used on this cover page not otherwise defined shall have the meanings set forth in APPENDIX B attached hereto. '• y The City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A(the"2015 Bonds") are being issued by the City of Vernon, California(the"City") pursuant to the City's Municipal Facilities Revenue Bond Law and an Indenture of Trust, dated as of September 1, 2008 (as amended and supplemented, the "Indenture"), between the City and The Bank of New York E Mellon Trust Company, N.A., as trustee (the "Trustee"), including as amended and supplemented by a Fourth Supplemental CD Indenture of Trust,dated as of July 1,2015. The 2015 Bonds are being issued to provide funds to (i) refund a portion of the Outstanding Electric System Revenue Bonds, 2009 Series A; (ii) finance the Costs of certain Capital Improvements to the City's Electric System by reimbursing the ° Electric System for the prior payment of such Costs from the Light and Power Fund; (iii) fund a deposit to the Debt Service Y Reserve Fund; and (iv)pay costs of issuance of the 2015 Bonds, all as further described herein. See"PLAN OF FINANCE" and "ESTIMATED SOURCES AND USES OF FUNDS"herein. y � The 2015 Bonds will be issued in denominations of$5,000 or any integral multiple thereof, and will be issued in fully y registered form, registered in the name of Cede& Co., as nominee of The Depository Trust Company, New York, New York, 'R ("DTC") under the book-entry only system maintained by DTC. While DTC is the securities depository for the 2015 Bonds, principal of,premium, if any, and interest on the 2015 Bonds will be payable by the Trustee to DTC,which is obligated in turn to $ remit such payments to its DTC participants for subsequent disbursement to beneficial owners of the 2015 Bonds, as more fully described herein. See APPENDIX C—"Book-Entry Only System." The 2015 Bonds are subject to redemption prior to maturity,as described herein. ,O U Interest on the 2015 Bonds will be payable on each February 1 and August 1,commencing [February 1,2016]. a MATURITY SCHEDULE (See Inside Cover) The 2015 Bonds will be special obligations of the City. The principal and Redemption Price of and interest on the 2015 Bonds, as well all other Bonds (as defined herein) currently outstanding under the Indenture and any other Bonds that may be o issued under the Indenture,are equally and ratably payable by the City solely from the Net Revenues of the City's Electric System, r amounts in the Light and Power Fund other than the Operating Reserve,and the amounts in the Funds,other than the Rebate Fund, v held by the Trustee under the Indenture (as defined in the APPENDIX B,the"Trust Estate"). See"SECURITY AND SOURCES y = OF PAYMENT." ti E v O .c ? w 'Preliminary;subject to change. .. c The issuance of the 2015 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 2015 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. 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 2015 Bonds. The 2015 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 2015 Bonds are offered, when, as and if issued and delivered to the Underwriters, subject to the approval of legality by Orrick,Herrington&Sutcliffe LLP,Los Angeles,California,Bond Counsel,and certain other conditions. Certain legal matters will be passed upon for the City by the office of the City Attorney and for the Underwriters by Norton Rose Fulbright US LLP, Los Angeles, California, as counsel to the Underwriters. It is expected that the 2015 Bonds will be available for delivery through the DTC's book-entry system on or about 12015. J.P. Morgan Citigroup Dated: 2015 I I MATURITY SCHEDULE* $[PAR AMOUNT]* CITY OF VERNON Electric System Revenue Bonds 2015 Taxable Series A $ Serial 2015 Bonds Maturity Date Principal Interest (August 1) Amount Rate Yield CUSIP No.t $ %Term 2015 Bond due August 1, 20_ Yield: % CUSIP No.: t Preliminary;subject to change. CUSIP®is a registered trademark of the American Bankers Association. CUSIP Global Services(CGS)is managed on behalf of the American Bankers Association by S&P Capital IQ. Copyright©2015 CUSIP Global Services. 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. None of the City, the Underwriters or their agents or counsel assume responsibility for the accuracy of such numbers. No dealer,broker, salesperson or other person has been authorized by the City or the Underwriters to give any information or to make any representations other than those contained herein and, if given or made, such other information or representation must not be relied upon as having been authorized by either of the foregoing. 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 any 2015 Bonds by any person in any jurisdiction in which such offer,solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Statements contained in this Official Statement that include forecasts, estimates or matters of opinion, whether or not expressly stated as such, are intended solely as such and are not to be construed as representations of fact. The information set forth herein has been furnished by the City and by other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness, and is not to be construed as representations by the Underwriters. The information and expressions of opinions herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall create, under any circumstances, any implication that there has been no change in the affairs of the City since the date hereof. The Underwriters have provided the following sentence for inclusion in this Official Statement: The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction,but the Underwriters do not guarantee the accuracy or completeness of such information. I IN CONNECTION WITH THE OFFERING OF THE 2015 BONDS, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS THAT MAY STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 2015 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 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 2015 Bonds. CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS IN THIS OFFICIAL STATEMENT Certain statements included or incorporated by reference in this Official Statement and the Appendices hereto constitute"forward-looking statements." Such statements are generally identifiable by the terminology used such as"plan,""expect,""estimate,""budget"or other similar words. Such forward-looking statements include,but are not limited to, certain statements contained in the information under the captions "PLAN OF FINANCE," "ELECTRIC SYSTEM FINANCIAL INFORMATION—Projected Operating Results and Debt Service Coverage," "ELECTRIC SYSTEM FINANCIAL INFORMATION — Unrestricted Cash Balances" and "FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY" in this Official Statement. Forward-looking statements in this Official Statement are subject to risks and uncertainties,including particularly those relating to natural gas costs and availability, wholesale and retail electric energy and capacity prices, federal and state legislation and regulations, competition and industry restructuring, and the economy of the service area of the City's Electric System. The achievement of any results or the realization of other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The City does not plan to issue any updates or revisions to those forward-looking statements. The 2015 Bonds have not been registered under the Securities Act of 1933,as amended,in reliance upon an exemption contained in such Act. The 2015 Bonds have not been registered or qualified under the securities laws of any state. CITY OF VERNON City Council W. Michael McCormick,Mayor William J. Davis,Mayor Pro Tem Luz A. Martinez, Councilmember Yvette Woodruff-Perez, Councilmember Melissa Ybarra, Councilmember City Officers Mark C.Whitworth, City Administrator Maria Ayala, City Clerk Hema Patel, City Attorney William Fox,Finance Director/City Treasurer Samuel Kevin Wilson,Director of Public Works, Water and Development Services Department Leonard Grossberg,Director of Health and Environmental Control Department Michael Wilson,Fire Chief Daniel Calleros, Chief of Police Teresa McAllister,Director of Human Resources Gas and Electric Department Executive Management Carlos Fandino,Director of Gas and Electric Department Abraham Alemu,Electric Resources Planning and Development Manager Ali Nourmohamadian, Utilities Engineering Manager SPECIAL SERVICES Orrick,Herrington& Sutcliffe LLP Los Angeles, California Bond Counsel Public Financial Management, Inc. Los Angeles, California Financial Advisor The Bank of New York Mellon Trust Company,N.A. Los Angeles, California Trustee Verification Agent TABLE OF CONTENTS Page INTRODUCTION...............................................................................................................................................I Purposeof Official Statement................................................................................................................I Authority...................................................................................... .......................1 ................................... Useof Proceeds......................................................................................................................................1 TheCity.................................................................................................................................................I TheElectric System...............................................................................................................................2 Security and Sources of Payment...........................................................................................................2 DebtService Reserve Fund....................................................................................................................3 ContinuingDisclosure............................................................................................................................3 OtherMatters.........................................................................................................................................3 PLANOF FINANCE..........................................................................................................................................3 ESTIMATED SOURCES AND USES OF FUNDS...........................................................................................4 DEBTSERVICE SCHEDULE...........................................................................................................................5 THE2015 BONDS..............................................................................................................................................6 General ..................................................................................................................................................6 Redemptionof 2015 Bonds....................................................................................................................6 SECURITY AND SOURCES OF PAYMENT...................................................................................................8 Pledge Effected by the Indenture...........................................................................................................8 ' Deposit and Application of Revenues..................................................................................................10 Paymentsto Trustee for Bonds............................................................................................................10 RateCovenant......................................................................................................................................I I DebtService Reserve Fund..................................................................................................................12 ExpenseStabilization Fund..................................................................................................................12 Outstanding Electric System Obligations............................................................................................13 AdditionalParity Obligations..............................................................................................................13 Transfersto General Fund....................................................................................................................14 Limitationson Remedies.....................................................................................................................15 ELECTRIC SYSTEM OBLIGATIONS............................................................................................................15 MalburgGenerating Station.................................................................................................................15 Power Sales Contract with SCPPA for PVNGS..................................................................................16 GasSupply Agreements.......................................................................................................................16 Interest Rate Swap Transactions..........................................................................................................17 HooverUprating Project......................................................................................................................18 THEELECTRIC SYSTEM...............................................................................................................................18 General ................................................................................................................................................18 TheCity and the Service Area.............................................................................................................18 City Plan to Optimize Resource Utilization.........................................................................................19 Implementation of Resource Optimization Plan..................................................................................19 Management.........................................................................................................................................20 Prior Attempt to Disincorporate City; City Reform.............................................................................21 PowerSupply Resources......................................................................................................................22 Renewable Energy Resources..............................................................................................................29 Interconnection and Distribution Facilities..........................................................................................31 Developments Affecting the Power Supply.........................................................................................31 CapitalRequirements...........................................................................................................................32 LargestCustomers ...............................................................................................................................33 ElectricRates.......................................................................................................................................34 EmployeeRelations.............................................................................................................................36 Insurance..............................................................................................................................................38 i SeismicActivity...................................................................................................................................39 Investment Policy and Controls...........................................................................................................39 ELECTRIC SYSTEM FINANCIAL INFORMATION....................................................................................40 RetailEnergy Sales..............................................................................................................................40 Summary of Operating Results............................................................................................................41 Management's Discussion of Operating Results.................................................................................43 Projected Operating Results and Debt Service Coverage....................................................................43 UnrestrictedCash Balances.................................................................................................................45 FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY................................................................46 Changing Laws and Requirements.......................................................................................................46 Impactof Developments on the City...................................................................................................47 California Climate Change Policy Developments ...............................................................................47 Environmental and Regulatory Factors................................................................................................50 EnergyRegulatory Factors...................................................................................................................53 OtherGeneral Factors..........................................................................................................................55 CONSTITUTIONAL LIMITATIONS ON TAXES.........................................................................................56 Articles XIIIC and XIIID of the State Constitution.............................................................................56 FutureInitiatives..................................................................................................................................57 LITIGATION....................................................................................................................................................57 TAXMATTERS...............................................................................................................................................58 APPROVALOF LEGALITY...........................................................................................................................60 RATINGS..........................................................................................................................................................60 UNDERWRITING............................................................................................................................................61 FINANCIALADVISOR...................................................................................................................................61 VERIFICATIONREPORT...............................................................................................................................61 FINANCIALSTATEMENTS...........................................................................................................................62 CONTINUINGDISCLOSURE.........................................................................................................................62 MISCELLANEOUS..........................................................................................................................................63 APPENDIX A AUDITED FINANCIAL STATEMENTS OF THE LIGHT AND POWER ENTERPRISE FOR THE FISCAL YEAR ENDED JUNE 30,2014 AND FOR THE FISCAL YEAR ENDED JUNE 30,2013....................................................................................A-1 APPENDIX B SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE..........................................B-1 APPENDIX C BOOK-ENTRY ONLY SYSTEM...............................................................................................C-1 APPENDIX D PROPOSED FORM OF OPINION OF BOND COUNSEL........................................................D-1 APPENDIX E FORM OF CONTINUING DISCLOSURE AGREEMENT.......................................................E-1 I ii OFFICIAL STATEMENT $[PAR AMOUNT]" CITY OF VERNON Electric System Revenue Bonds 2015 Taxable Series A INTRODUCTION This Introduction is qualified in its entirety by reference to the more detailed information included and referred to elsewhere in this Official Statement. The offering of the 2015 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 APPENDIXB — "SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE—DEFINITIONS"herein. 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,2015 Taxable Series A(the"2015 Bonds"). Authority The 2015 Bonds are being issued pursuant to the City of Vernon Municipal Facilities Revenue Bond Law, constituting Article XI of the Vernon City Code, and an Indenture of Trust, dated as of September 1, 2008 (as amended and supplemented,the"Indenture"),between the City and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), including as amended and supplemented by the Fourth Supplemental Indenture of Trust,dated as of July 1,2015. Use of Proceeds The 2015 Bonds are being issued to provide funds to (i) refund a portion of the Outstanding Electric System Revenue Bonds, 2009 Series A; (ii) finance the Costs of certain Capital Improvements to the City's Electric System by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund, as further described herein; (iii) fund a deposit to the Debt Service Reserve Fund; and(iv)pay costs of issuance of the 2015 Bonds, all as further described herein. See "ESTIMATED SOURCES AND USES OF FUNDS" and"PLAN OF FINANCE"herein. The City The City is a chartered city of the State of California(the"State"), consisting of approximately 5.2 square miles located in Los Angeles County, approximately 4 miles southeast of downtown Los Angeles. The City was established in 1905 with a view of promoting industrial activity. There are approximately 1,800 companies doing business in the City employing more than 55,000 persons. The City is almost exclusively industrial, with an industrial space occupancy rate of over 96%as of June 30, 2014. The City had an estimated resident population of approximately 123 as of January 1, 2015 according to the California Department of Finance Demographic Research Unit. The City's services are tailored to the industrial needs of the community. These include a Class 1 rated fire department, a police department with 41 sworn officers, as of June 8, 2015, to provide high level security and a quick response time and an environmental health department, which acts as a California Unified Program Agency Preliminary;subject to change. with the State's Department of Health Services. In addition,the City owns and operates the Electric System,a water system which provides water within the City and a natural gas system. By a resolution adopted on December 15,2011,as clarified by a resolution adopted on January 3,2012,the City Council merged the Gas Fund into the Light and Power Fund for accounting and financial reporting purposes. Such merger of such funds for such purpose does not affect the operations of the Gas and Electric Department nor alters the obligations of the Light and Power Fund to bondholders or other creditors. Prior to July 1,2011, the Gas Fund and the Light and Power Fund were reported as separate enterprise funds. The audited financial statements of the Electric System are included in the Light and Power Enterprise Annual Financial Report, and such merged fund is referred to in the Light and Power Enterprise Annual Financial Report as the Light and Power Enterprise. See "FINANCIAL STATEMENTS"herein. The Electric System The City established its Gas and Electric Department in 1933, with responsibility for the operation of the City's Electric System. The function of the Electric System is to supply the City's inhabitants and the businesses within the City with electricity. For the Fiscal Year ended June 30, 2014, the Electric System provided approximately 1,131.5 million kilowatt hours ("kWhs") of electricity to 1,889 customers, based on the number of meters. For the Fiscal Year ending June 30,2015,the Electric System is projected to provide approximately 1,128.8 million kWhs of electricity to approximately 1,889 customers, based on the number of meters. Almost all of the Electric System's customers are industrial entities. See"THE ELECTRIC SYSTEM"herein. Security and Sources of Payment The 2015 Bonds are special obligations of the City. The principal and Redemption Price of and interest on the 2015 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 the APPENDIX B,the"Trust Estate")and are secured by a pledge of the Trust Estate. See"SECURITY AND SOURCES OF PAYMENT—Pledge Effected by the Indenture." The issuance of the 2015 Bonds shall 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 2015 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. 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, premium, if any, or interest on the 2015 Bonds. The 2015 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 currently remains Outstanding under the Indenture $ aggregate principal amount of Electric System Revenue Bonds, consisting o£ $ aggregate principal amount of Electric System Revenue Bonds, 2008 Taxable Series A (the "2008 Bonds"), $ aggregate principal amount of Electric System Revenue Bonds,2009 Series A(the"2009 Bonds"), which outstanding principal amount includes the$ .aggregate principal amount of Refunded 2009 Bonds to be refunded with proceeds of the 2015 Bonds (see "PLAN OF FINANCE" herein), $ aggregate principal amount of Electric System Revenue Bonds, 2012 Series A (the "2012 Series A Bonds") and $ aggregate principal amount of Electric System Revenue Bonds, 2012 Taxable Series B (the "2012 Series B Bonds" and, together with the 2012 Series A Bonds, the"2012 Bonds"). The Indenture permits the issuance of Additional Bonds and Refunding Bonds in addition to the 2008 Bonds,the 2009 Bonds,the 2012 Bonds and the 2015 Bonds on the terms and conditions set forth in the Indenture. The 2008 Bonds,the 2009 Bonds,the 2012 Bonds,the 2015 Bonds and any such Additional Bonds and Refunding Bonds issued under the Indenture being referred to as the"Bonds." All Bonds are equally and ratably secured by the pledge of the Trust Estate under the Indenture. See "SECURITY AND SOURCES OF PAYMENT—Outstanding Electric System Obligations"and"—Additional Parity Obligations." 2 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 2015 Bonds. A portion of the proceeds of the 2015 Bonds will be deposited in the Debt Service Reserve Fund so that the amount on deposit therein is no less than the Debt Service Reserve Requirement as of the date of issuance of the 2015 Bonds. See "ESTIMATED SOURCES AND USES OF FUNDS"and"SECURITY AND SOURCES OF PAYMENT—Debt Service Reserve Fund"herein. Continuing Disclosure The City has covenanted for the benefit of the holders and beneficial owners of the 2015 Bonds,pursuant to a Continuing Disclosure Agreement with the Trustee,to provide to the Municipal Securities Rulemaking Board(the "MSRB") through its Electronic Municipal Market Access System (the "EMMA System") a copy of the annual audited financial statements for the Electric System, as well as certain operating and financial data relating to the Electric System,and notices of certain enumerated events. See"CONTINUING DISCLOSURE"herein. Other Matters The summaries of and references to all documents, statutes,reports and other instruments 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 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 The proceeds of the 2015 Bonds will be applied to (i) refund the 2009 Bonds maturing on August 1 in the years [2016 through 2021],' inclusive (the "Refunded 2009 Bonds"); (ii) finance the Costs of certain Capital Improvements to the City's Electric System by reimbursing the Electric System for the prior payment of such Costs from the Light and Power Fund; (iii) fund a deposit to the Debt Service Reserve Fund; and(iv)pay costs of issuance of the 2015 Bonds,all as further described herein. Reimbursement for Capital Improvements. The portion of the net proceeds of the 2015 Bonds not applied to refund the Refunded 2009 Bonds, to pay the costs of issuance of the 2015 Bonds or to fund the Debt Service Reserve Fund (see "ESTIMATED SOURCES AND USES OF FUNDS") will be applied to finance the Costs of certain Capital Improvements to the City's Electric System. The Capital Improvements to be financed are transmission, distribution and renewable infrastructure of the Electric System. As the City has previously paid the Costs of these Capital Improvements from the Light and Power Fund, such net proceeds of the 2015 Bonds will be used to reimburse the City for such Costs. Such reimbursement amounts,together with other available funds of the City, are to be used to make the termination payments associated with terminating the City's two outstanding interest rate swap transactions: (a) the interest rate swap transaction with Morgan Stanley Capital Services Inc. ("Morgan Stanley") originally entered into in connection with the City's Electric System Revenue Bonds, 2004 Series A (the "2004A Bonds"), and (b) the interest rate swap transaction with to Deutsche Bank AG ("Deutsche Bank") originally entered into in connection with the City's Electric System Revenue Bonds, 2004 Series B (the "2004B Bonds"). The 2004A Bonds and the 2004B Bonds are no longer Outstanding. For more information about such interest rate swap transactions, see "ELECTRIC SYSTEM OBLIGATIONS — Interest Rate Swap Transactions"herein. Preliminary;subject to change. 3 Refunding of Refunded 2009 Bonds. Certain of the proceeds of the 2015 Bonds will be deposited into an escrow fund (the "Escrow Fund") and used to purchase certain federal securities, the maturing principal of and interest on which, together with any amounts held as cash in the Escrow Fund, will be applied to the payment of(a) the accrued interest due on the Refunded 2009 Bonds on each Interest Payment Date commencing on August 1, 2015 through the date of maturity or redemption of such Refunded 2009 Bonds, (b) the principal of the Refunded 2009 Bonds maturing on August 1 in each of the years [2016 through 2019],` inclusive, as such principal amounts become due, and (c) the redemption price of the Refunded 2009 Bonds maturing on August 1 in each of the years [2020 and 2021]` on August 1, 2019 (the"Redemption Date"), such redemption price being equal to the principal amount of such Refunded 2009 Bonds, all in accordance with the Escrow Agreement, dated as of July 1, 2015 (the "Escrow Agreement"), by and between the City and The Bank of New York Mellon Trust Company, N.A., as trustee for the 2009 Bonds. Upon the deposit of such proceeds and the investment thereof in accordance with the Escrow Agreement, the Refunded 2009 Bonds will no longer be deemed Outstanding under the Indenture. The refunding of the Refunded 2009 Bonds is being undertaken to modify the Electric System's cash flow requirements and, in particular, to reduce debt service payments from Net Revenues [for the Fiscal Years ending June 30, 2016 through June 30, 2022].' The amounts on deposit in the Escrow Fund will not be available to pay debt service on the 2015 Bonds or any other Bonds other than the Refunded 2009 Bonds. The sufficiency of the maturing principal and interest payments on the investments in the Escrow Fund and the other moneys held in the Escrow Fund to pay, when due, the principal and redemption price of and interest on the Refunded 2009 Bonds will be verified by . See"VERIFICATION REPORT." ESTIMATED SOURCES AND USES OF FUNDS The estimated sources and uses of funds with respect to the 2015 Bonds as described under "PLAN OF FINANCE"are set forth below. SOURCES: Principal Amount Original Issue Premium/(Discount) TOTAL SOURCES: I USES: Reimbursement Costs of Capital Improvements Deposit to Escrow Fund(2) Deposit to Debt Service Reserve Fund Costs of Issuance(3) TOTAL USES: 0) Such reimbursement amounts,together with other available funds of the City in the amount of$ ,are to be used to make the termination payments associated with terminating the City's two outstanding interest rate swap transactions. See"PLAN OF FINANCE." (2) To refund the Refunded 2009 Bonds. (3) Includes underwriters' discount, legal fees, fees of the Trustee, rating agency fees, financial and consulting fees, printing costs and other expenses in connection with the issuance of the 2015 Bonds. Preliminary;subject to change. 4 DEBT SERVICE SCHEDULE The following table shows the debt service schedule for the City's outstanding Bonds upon the issuance of the 2015 Bonds. Fiscal Year Debt Service on 2015 Bonds Ended Outstanding Total Debt June 30, BondsM Principal Interest Service 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 TOTAL:(2) (1) Consisting of the 2008 Bonds,the 2009 Bonds(including the Refunded 2009 Bonds)and the 2012 Bonds. (2) Totals may not add due to rounding. 5 THE 2015 BONDS The following is a summary of certain provisions of the 2015 Bonds. Reference is made to the 2015 Bonds for the complete text thereof and to the Indenture for all of the provisions of the 2015 Bonds. The discussion herein is qualified by such references. See APPENDIX B — "SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE." General The 2015 Bonds will be issued in the aggregate principal amount, will bear interest at the rates and will mature in the years and amounts all as set forth on the inside cover page of this Official Statement. The 2015 Bonds will be issued in denominations of$5,000 or any integral multiple thereof. The 2015 Bonds will be dated and shall bear interest from their date of original issuance. Interest on the 2015 Bonds will be payable on each February 1 and August 1, commencing [February 1, 2016]. The 2015 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 2015 Bonds are held in the book-entry system,DTC or its nominee will be the registered owner of the 2015 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 2015 Bonds are held in book- entry form through DTC,all payments with respect to principal of,premium,if any, and interest on each 2015 Bond will be made pursuant to DTC's rules and procedures. See APPENDIX C—"BOOK-ENTRY ONLY SYSTEM." Redemption of 2015 Bonds' Optional Redemption. The 2015 Bonds are also 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 any date, at a Redemption Price equal to the Make Whole Redemption Price. "Make Whole Redemption Price" means. with respect to a 2015 Bond to be redeemed, in whole or in part, at the option of the City, a redemption price, calculated by the Independent Investment Banker, equal to the greater of(i) one hundred percent(100%) of the principal amount of the 2015 Bond to be redeemed; or(ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2015 Bond to be redeemed (exclusive of interest accrued to the date fixed for redemption)discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus basis points, plus in each case,accrued and unpaid interest on the 2015 Bond being redeemed to the date fixed for redemption. I "Independent Investment Banker" means an independent accounting firm, investment banking firm or financial advisor selected by the City to calculate, at the City's expense, the Make Whole Redemption Price. The initial Independent Investment Banker shall be J.P.Morgan Securities LLC. "Treasury Rate" means, with respect to any redemption date for a 2015 Bond,the rate per annum equal to the semiannual equivalent yield to maturity or interpolated maturity of the Comparable Treasury Issue, assuming that the Comparable Treasury Issue is purchased on the redemption date for a price equal to the Comparable Treasury Price. "Comparable Treasury Issue" means, with respect to any redemption date for a particular 2015 Bond, the US Treasury security or securities selected by the Independent Investment Banker which has an actual or interpolated maturity comparable to the remaining average life of the 2015 Bond to be redeemed, and that would be utilized in accordance with customary financial practice in pricing new issues of debt securities of comparable maturity to the remaining average life of the 2015 Bond to be redeemed. "Comparable Treasury Price"means,with respect to any redemption date for a 2015 Bond, (1)the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest Preliminary;subject to change. 6 Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations,the average of all such quotations. "Reference Treasury Dealer" means J.P. Morgan Securities LLC and its successor and three other firms, specified by the City from time to time, that are primary U.S. Government securities dealers in the City of New York(each a"Primary Treasury Dealer"); provided, however, that if any of them ceases to be a Primary Treasury Dealer,the City will substitute another Primary Treasury Dealer. "Reference Treasury Dealer Quotations" means, with respect to each Reference Treasury Dealer and any redemption date for a 2015 Bond, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m.,New York City time,on the third business day preceding such redemption date. Mandatory Sinking Fund Redemption. The 2015 Bonds maturing on August 1, 20 are subject to mandatory redemption in part prior to their stated maturity date from mandatory sinking fund payments for such 2015 Bonds on each August 1 on and after August 1, 20_, at a Redemption Price equal to the principal amount of the 2015 Bonds of such maturity to be redeemed,without premium,in the amounts and on the dates set forth below: Sinking Fund Principal Amount Redemption Date to be Au ust 1 Redeemed Maturity The principal amount of the 2015 Bonds maturing on August 1, 20_to be redeemed in each year shown above will be reduced as directed by the City by any portion of the 2015 Bonds maturing on August 1, 20_ optionally redeemed prior to the mandatory sinking fund redemption dates shown above. Notice of Redemption. The Trustee is to give notice of the redemption of any 2015 Bonds by first class mail, postage prepaid, not more than sixty (60) nor less than thirty (30) days before the redemption date to the Owners of any 2015 Bonds to be redeemed(in whole or in part) at their addresses appearing in the Bond Register. Such notice shall specify the maturity date of the 2015 Bonds to be redeemed,the redemption date and the place or places where amounts due upon such redemption shall be payable and,if less than all of the 2015 Bonds of any like maturity are to be redeemed, the letters and numbers or other distinguishing marks of such 2015 Bonds to be redeemed,and,in the case of a 2015 Bond to be redeemed in part only, such notice shall also specify the respective portions of the principal amount thereof to be redeemed. In the event that funds required to pay the Redemption Price of 2015 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 2015 Bonds is given, such notice shall 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 2015 Bonds to be redeemed, and that if such moneys shall not have been so received said notice shall be of no force and effect and the City shall not be required to redeem such 2015 Bonds. In the event a notice of redemption of 2015 Bonds contains such a condition and such moneys are not so received, the redemption of 2015 Bonds as described in the conditional notice of redemption shall 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 shall be no redemption of 2015 Bonds pursuant to the conditional notice of redemption. 7 Receipt of notice of redemption shall not be a condition precedent to the redemption of 2015 Bonds and failure of any Owner of a 2015 Bond to receive any such notice or any insubstantial defect in such notice shall not affect the validity of the proceedings for the redemption of 2015 Bonds. Effect of Redemption. Notice of redemption having been given, and as to redemptions at the option of the City, moneys for the payment of the Redemption Price being held by the Trustee, the 2015 Bonds so called for redemption will, on the date fixed for redemption designated in such notice, become due and payable at the Redemption Price specified in such notice. If the amount of the Redemption Price of the 2015 Bonds to be redeemed is available on the redemption date, interest on the 2015 Bonds to be redeemed will cease to accrue, such 2015 Bonds shall cease to be entitled to any lien,benefit or security under the Indenture and the Owners thereof will have no rights except to receive payment of the Redemption Price of such 2015 Bonds from the amounts so made available. Selection of 201 S Bonds to be Redeemed. The City shall select the principal amount of each maturity of the 2015 Bonds to be redeemed at the option of the City. Whenever less than all of the 2015 Bonds of a maturity are to be redeemed, the Trustee shall select at random the 2015 Bonds of such maturity to be redeemed from all 2015 Bonds of such maturity subject to redemption by lot in any manner which the Trustee in its sole discretion shall deem appropriate and fair. SECURITY AND SOURCES OF PAYMENT Pledge Effected by the Indenture The 2015 Bonds are special obligations of the City. The principal and Redemption Price of and interest on the 2015 Bonds are payable solely from the Net Revenues, amounts in the Light and Power Fund other than the Operating Reserve, and the amounts in the Funds, other than the Rebate Fund, held by the Trustee under the Indenture. The payment of the principal and Redemption Price of and interest on the 2015 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 2015 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 2015 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 Revenues and amounts in the Light and Power Fund on a parity with the Bonds and payable from the Net Revenues and amounts in the Light and Power Fund other than the Operating Reserve on a parity with the Bonds. The City has issued under the Indenture and there is currently outstanding $ aggregate principal amount of 2008 Bonds, $ aggregate principal amount of 2009 Bonds (including the Refunded 2009 Bonds), $ aggregate principal amount of 2012 Series A Bonds and $ aggregate principal amount of 2012 Series B Bonds. See "— Outstanding Electric System Obligations" and "ELECTRIC SYSTEM OBLIGATIONS" for more information about outstanding Parity Obligations and obligations payable as Operation and Maintenance Expenses. "Revenues" includes 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 8 (i)proceeds of taxes, (ii)refundable deposits made to establish credit, (iii) advances or contributions in aid of construction and(iv)line extension fees. "Net Revenues" is defined in the Indenture to mean, for any period of time, 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, 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 required rebate to the United States required to maintain the Tax-Exempt status of interest on such Parity Obligations; 0)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) of this paragraph, no transfer of Revenues to the City, including Franchise Payments, shall constitute an Operation and Maintenance Expense. For a description of obligations payable as Operation and Maintenance Expenses, see "ELECTRIC SYSTEM OBLIGATIONS." J` i "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 Operations 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 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; (b)obligations to replenish any debt service reserve fund with respect to obligations of the City described in (a) above; (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 (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 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. 9 For definitions of certain other terms used herein, see APPENDIX B — "SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE—DEFINITIONS"herein. The issuance of the 2015 Bonds shall 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 2015 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 2015 Bonds. The 2015 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, shall not be individually liable on the 2015 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. Payments to Trustee for Bonds During each Fiscal Year the City shall 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 shall 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 shall 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 shall 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; 10 (e) on the date on which the principal of or interest on any Outstanding Bond becomes due and payable, other than as provided in (a) through (d) above, the City shall pay an amount in funds which are immediately available to the Trustee 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 paragraphs (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 shall apply the Net Revenues and amounts in the Light and Power Fund available therefor in accordance with the Indenture to the payments required by paragraphs(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 shall pay an amount for deposit in the Debt Service Reserve Fund, such that, after the deposit, the amount on deposit in such Fund shall be 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 paragraph(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 paragraphs (a), (b), (c), (d), (e), and (f) above, shall apply the Net Revenues and amounts in 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 shall 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 paragraphs(a)through(h)are not made in full, then no payment shall 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 shall 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 one hundred ten percent(110%)of Adjusted Debt Service for such Fiscal Year. "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 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. 11 Debt Service Reserve Fund The Debt Service Reserve Fund is required to be maintained in an amount equal to the Debt Service Reserve Requirement. A portion of the proceeds of the 2015 Bonds will be deposited in the Debt Service Reserve Fund so that the amount on deposit therein is no less than the Debt Service Reserve Requirement as of the date of issuance of the 2015 Bonds. 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 Requirements"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 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 shall 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. 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 I 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. 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 shall be 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 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,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 "—Rate Covenant" above. If an Event of Default under the Indenture shall have occurred and is continuing, the Trustee shall 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. As of April 30, 2015, there was $7,869,881 on deposit in the Expense Stabilization Fund. See "— Expense Stabilization Fund" below. 12 Outstanding Electric System Obligations Upon the issuance of the 2015 Bonds, the 2008 Bonds, the 2009 Bonds, the 2012 Bonds, the 2015 Bonds and net payments due under certain interest rate swap transactions 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 "ELECTRIC SYSTEM OBLIGATIONS." The City plans to apply certain proceeds of the 2015 Bonds,together with other available funds,to pay the termination payments associated with the City's outstanding interest rate swap transactions(see"PLAN OF FINANCE"herein). Additional Parity Obligations The City has covenanted pursuant to the Indenture that it shall 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 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 shall prevent the City from issuing Subordinate Obligations. Pursuant to the Indenture, the City may, at any time and from time to time, issue any Additional Parity Obligations,provided 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"), which Calculation Period shall be selected by the City in its sole discretion, shall have amounted 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 shall have amounted 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, from the proceeds of Parity Obligations or Subordinate Obligations, shall have amounted 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, from the proceeds of Parity Obligations or Subordinate Obligations, shall have amounted 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 shall 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. The 2015 Bonds are authorized to be issued in accordance with paragraph[(a)] above. 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 13 Adjusted Annual Debt Service for all Parity Obligations to be Outstanding after the issuance of such Refunding Parity Obligations shall not exceed the Aggregate Adjusted Annual Debt Service for all Parity 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 — "SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE" for the definition of certain terms used above, including the definition of"Debt Service Adjustments and Assumptions," to be used for purposes of determining Aggregate Adjusted Annual Debt Service and Maximum Adjusted Annual Debt Service. Transfers to General Fund The City covenants 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 shall 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 shall 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 shall 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. For the definition of "Net Revenues"and"Operation and Maintenance Expenses,"see"—Pledge Effected by the Indenture"above. "Debt Service" means, for any period of time,the sum of(a)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, (b) 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 (c) 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). 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 Fiscal Year ending June 30,2015: i i 14 i I I CITY OF VERNON ELECTRIC SYSTEM TRANSFERS TO GENERAL FUND For Fiscal Years Ended June 30,2010-2015 Fiscal Year Ended Amount June 30 of Transfer 2010 $ 8,600,038 2011 3,149,776 2012 9,147,090 2013 11,959,593 2014 11,921,548 2015t2> 14,089,933 Source:City of Vernon (1) Includes Franchise Payments; does not include City allocated administrative expenses constituting Operation and Maintenance Expenses. See the limitation regarding Net Transferable Income above. P)Projected. See "CONSTITUTIONAL LIMITATIONS ON TAXES — Articles XIIIC and XIIID of the State Constitution" for a discussion on certain limitations, as well as a discussion of Proposition 26 and a recent case where the Court of Appeal of California, Third Appellate District, held that a municipal utility's recurring budget transfer from its electrical utility fund to its general fund constitutes a tax under Proposition 26 unless it can be shown that the transferred amount reflects the reasonable costs borne to provide electric services. [The City sets its rates and its budget with the expectation that certain transfers will be made to the City in accordance with the restrictions set forth in the Indenture. In the event transfers are further restricted, such further restriction would not 1 have a material adverse effect on the financial position of the Electric System.] Limitations on Remedies The rights of the Owners of the 2015 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 2015 Bonds, and the obligations incurred by the City,may become subject to the following: the Federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditor's rights generally, now or hereafter 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 2015 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. ELECTRIC SYSTEM OBLIGATIONS In addition to the Outstanding Bonds, the City has entered into a number of transactions providing for payments from the Revenues (as Operation and Maintenance Expenses), including short-term power purchase agreements,or Net Revenues of the Electric System. The material transactions are described below. Malburg Generating Station As described under "THE ELECTRIC SYSTEM — Power Supply Resources — Malburg Generating Station,"the City has entered into the Power Purchase Tolling Agreement,dated as of April 10,2008 (the"PPTA"), with Bicent (California) Malburg LLC, a Delaware limited liability company (`BCM") pursuant to which the City I 15 has purchased the output of the Malburg Generating Station(the"MGS"),a combined cycle generating plant located within the City. Payments under the PPTA are to be made as Operation and Maintenance Expenses. Power Sales Contract with SCPPA for PVNGS As described under"THE ELECTRIC SYSTEM—Power Supply Resources—SCPPA Palo Verde Nuclear Generating Station Interest,"the City has a 4.90%entitlement interest(11.9 MWs)in the Southern California Public Power Authority's ("SCPPA") ownership interest in the Palo Verde Nuclear Generating Station ("PVNGS"). The City has entered into a power sales contract with SCPPA(the"PVNGS Contract"), which provides the City with its share of capacity and energy from PVNGS. Under the PVNGS Contract, the City is obligated to pay its share of SCPPA 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" 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 share of entitlement to the output of PVNGS and its related payment obligations can be increased to compensate for failures by other SCPPA participants in PVNGS to meet their obligations under contracts with SCPPA in connection with the project. As of June 30, 2014, SCPPA had $47,460,000 principal amount of bonds outstanding for PVNGS and, as of March 31, 2015, SCPPA had $36,130,000 principal amount of bonds outstanding for PVNGS. The City's share of PVNGS costs under the PVNGS Contract for Fiscal Year ended June 30,2014 was$4,706,397. Gas Supply Agreements Pursuant to the Natural Gas Purchase Agreement, dated as of June 1, 2006 (the "Supply Agreement"), between the City and the Vernon Natural Gas Financing Authority(the"Authority"), the City acquired a supply of prepaid natural gas (the "Gas Supply"). The Gas Supply remaining to be delivered consists of 5,960,000 million British thermal units("MMBtus")of gas for Fiscal Year 2015 reducing in each Fiscal Year to 5,348,549 MMBtus in Fiscal Year 2021. The Gas Supply is to be delivered by Citigroup Energy Inc. (the "Supplier") pursuant to the Agreement for Purchase and Sale of Natural Gas,dated as of June 27,2006,between the Authority and the Supplier (the"Purchase Agreement"). The Authority prepaid for the Gas Supply with the proceeds of bonds of the Authority (the"Authority Bonds"),which Authority Bonds were redeemed in 2009 with proceeds of the 2009 Bonds and other available funds. With the redemption of the Authority Bonds, the Supply Agreement, including the City's obligation to make certain payments pursuant to the Supply Agreement,was terminated. The Purchase Agreement and the receipt of the Gas Supply under the Purchase Agreement were assigned by the Authority to the City, and the Supplier and the City are now in privy of contract relating to the delivery of the Gas Supply under the Purchase Agreement. The City originally acquired the Gas Supply to provide fuel for the MGS. As described under "THE ELECTRIC SYSTEM — City Plan to Optimize Resource Utilization" and "— Implementation of Resource Optimization Plan," the City has sold the MGS and entered into the PPTA to receive the output of the MGS. As a result of such sale, the City entered into a contract (the "Sale Contract") for the sale to the Sacramento Municipal Utility District ("SMUD") of an amount of gas equal to the gas remaining to be delivered under the Purchase Agreement less gas to be delivered to City retail gas customers. The Sale Contract obligates the City to deliver gas in the amounts and at the times specified in the Sale Contract. Such obligation of the City to deliver gas to SMUD is an independent obligation, and is not dependent on the delivery of gas under the Purchase Agreement. The Sale Contract fixes the price of gas sold to SMUD at an index price minus 25 cents per MMBtu,which the City estimates to result in a difference of.approximately$1.2 million per Fiscal Year from the index price. Events of termination of the Purchase Agreement include the failure of the Supplier to deliver gas over a specified period and the failure of the Supplier to make a payment obligated under the Purchase Agreement which failure is not cured by Citigroup, Inc. (the "Guarantor"), as guarantor of Supplier's payment obligations under the Purchase Agreement. In the event of a termination of the Purchase Agreement,the Supplier(and the Guarantor)are required to make a termination payment to the City. In the event such termination payments are due but not paid,it would be necessary for the City to purchase replacement gas with Electric System funds in order to fulfill its 16 obligations under the Sale Contract with SMUD, in addition to making ongoing payments of debt service on the 2009 Bonds. Satisfying such requirement may cause the City to raise electric rates more than the rates included in the projections under "ELECTRIC SYSTEM FINANCIAL INFORMATION — Projected Operating Results and Debt Service Coverage." Interest Rate Swap Transactions Swap Transactions. The City currently has two outstanding interest rate swap transactions,which the City plans to terminate with certain of the proceeds of the 2015 Bonds representing amounts reimbursed to the City for the costs of certain Capital Improvements to the Electric System, together with other available fund, as further discussed under"PLAN OF FINANCE"herein. Such interest rate swap transactions are further described below. In connection with the City's Electric System Revenue Bonds, 2004 Series A, 2004 Series B and 2004 Taxable Series D, all of which are now retired, the City initially entered into three interest rate swap transactions with Morgan Stanley Capital Services Inc. The interest rate swap transaction in connection with the City's Electric System Revenue Bonds,2004 Taxable Series D was terminated in Fiscal Year 2010. In September of 2011,Morgan Stanley transferred its rights and obligations under the interest rate swap transaction in connection with the City's Electric System Revenue Bonds,2004 Series B to Deutsche Bank AG(the"Deutsche Bank Swap Transaction"). To evidence such transfer, the City and Deutsche Bank entered into a novation confirmation which incorporates, by reference, the terms and conditions of the ISDA Master Agreement, Schedule and Collateral Support Annex of the original interest rate swap transaction with Morgan Stanley originally in connection with the City's Electric System Revenue Bonds, 2004 Series B, with certain modifications including an option by Deutsche Bank to terminate the Deutsche Bank Swap Transaction in Fiscal Year 2017. Morgan Stanley did not transfer its rights and obligations under the interest rate swap transaction originally entered into in connection with the City's Electric System Revenue Bonds, 2004 Series A (the "Morgan Stanley Swap Transaction" and, together with the Deutsche Bank Swap Transaction,the"Swap Transactions"). As of June 30, 2014,the Morgan Stanley Swap Transaction had a notional amount of$90,150,000 and the Deutsche Bank Swap Transaction had a notional amount of$83,575,000, for a total aggregate notional amount of $173,725,000. The terms of the Swap Transactions are described in Note 7 in the Annual Financial Report for the Fiscal Year ended June 30, 2014 attached hereto as APPENDIX A. Net payments due from the City under the outstanding Swap Transactions are payable from Net Revenues of the Electric System on a parity with the Bonds, while any termination payments are junior and subordinate to the payment of the Bonds. Swap Termination. Each Swap Transaction is subject to termination at the option of the counterparty (Morgan Stanley or Deutsche Bank) upon the occurrence of standard events of default and termination events set forth in the respective ISDA Master Agreement, where the City is the defaulting or affected party. Each Swap Transaction includes an additional termination event where the City is the affected party if Electric System revenue bonds fail to have a rating of at least BBB- from S&P or Baa3 from Moody's. See "RATINGS" herein for the current ratings of the City's Electric System revenue bonds. The Deutsche Bank Swap Transaction also includes an option by Deutsche Bank to terminate the Deutsche Bank Swap Transaction in Fiscal Year 2017. Upon any such termination, the Swap Transaction is marked to market with the resulting market value being payable by Morgan Stanley or Deutsche Bank, as applicable, or by the City depending on market conditions at the time of termination. As of May 7, 2015, the Morgan Stanley Swap Transaction had a negative market value to the City of$24,609,260 (representing the amount that would be payable by the City to Morgan Stanley in the event of a termination of such swap), and the Deutsche Bank Swap Transaction had a negative market value to the City of $14,489,544 (representing the amount that would be payable by the City to Deutsche Bank in the event of a termination of such swap). Such termination values depend on market conditions and are volatile and can fluctuate significantly within short periods of time. At any time the negative market value of the City's position in a Swap Transaction exceeds $20,000,000, the City is required to post collateral to the respective swap counterparty. In the case that the City's Electric System revenue bonds credit rating is downgraded to BBB from S&P or Baa2 from Moody's, the City is required to post collateral to the respective swap counterparty at any time the negative market value of the City's position in a Swap Transaction exceeds $10,000,000,and in the case that the City's Electric System revenue bonds credit rating is downgraded to BBB- or lower from S&P or Baa3 or lower from Moody's, or if such rating is withdrawn, the City is required to post collateral to the respective swap counterparty at any time the City's position in a Swap Transaction is of any negative market value. In the case that Morgan Stanley's or Deutsch Bank's credit 17 quality falls below BBB from S&P or Baa2 from Moody's,the downgraded swap counterparty would be required to fully collateralize the negative market value of the counterparty's position in the Swap Transaction with U.S. government securities,which collateral would be posted with a third-party custodian. As of May 7, 2015, the City had posted $4,609,260 in collateral in connection with the Morgan Stanley Swap Transaction. The market value of the Swap Transactions are volatile and there can be no assurances that the City will not be required to post collateral with respect to the Deutsche Bank Swap Transaction, or that any collateral requirements will not increase. Hoover Uprating Project As described under"THE ELECTRIC SYSTEM—Power Supply Resources—Hoover Uprating Project— General,"the City has entered into the Contract for Electric Service(the"CES")with the United States Department of Energy Western Area Power Administration("Western")in connection with power from the hydroelectric power plant of the Hoover Dam. While the City has advanced its share of the construction funds required by the CES,the City remains liable for its share of the operation and maintenance expenses of the Hoover Plant. In addition, as described under "THE ELECTRIC SYSTEM — Power Supply Resources — Hoover Uprating Project — Hoover Contract for Differences," the City has entered into the Hoover Contract for Differences (the"Hoover Contract for Differences") with Bicent(California) Hoover LLC (`BCH") with respect to the economic burdens and benefits of the City's interest in the Hoover Uprating Project. Any payments due under the CES and the Hoover Contract for Differences are to be made as Operation and Maintenance Expenses. THE ELECTRIC SYSTEM I 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 Gas and Electric Department 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. In keeping with the character of the City, the Electric System serves primarily industrial customers. During the Fiscal Year ended June 30, 2014, the Electric System served 1,889 customers (based on the number of meters), supplied approximately 1,131.5 million kWhs of electric energy and had a peak demand of approximately 194 megawatts ("MWs"). For the Fiscal Year ending June 30, 2015, the Electric System is projected to provide approximately 1,128.8 million kWhs of electricity to approximately 1,889 customers (based on the number of meters). See "ELECTRIC SYSTEM FINANCIAL INFORMATION—Retail Energy Sales"below. The City and the Service Area The City's service area encompasses the entire approximately 5.2 square miles of the City. The City is located in Los Angeles County, approximately four miles southeast of downtown Los Angeles. The City was established in 1905 with a view of promoting industrial activity. There are approximately 1,800 companies doing business in the City employing more than 55,000 persons. The City is almost exclusively industrial, with an industrial space occupancy rate of over 96%as of June 30, 2014. The City had an estimated resident population of approximately 123 as of January 1,2015 according to the California Department of Finance Demographic Research Unit. The City is a developed industrial rail city, with major railroads, including Union Pacific ("UP") and the Burlington Northern Santa Fe (`BNSF"), running through it. Along the City's northern border are some of the country's largest intermodal freight yards operated by UP and the BNSF. These [200]-acre rail facilities handle approximately [1.5 million] containers and trucks on flatcars per year heading for domestic and world markets. In addition,the City has excellent freeway access with Interstate Highway 710 adjacent to the City line and with close proximity to Interstate Highways 5, 10 and 105. The City's location facilitates the delivery of raw materials to City businesses and the distribution of finished products in a cost effective and efficient manner. 18 From 2010 through 2011, certain legislation unsuccessfully attempted to disincorporate the City and make it part of the unincorporated territory of Los Angeles County,and to transfer the Electric System to a special district governed by the Board of Supervisors of Los Angeles County. See "—Prior Attempt to Disincorporate City; City Reform"herein. City Plan to Optimize Resource Utilization Before 2005, the City supplied only a modest portion of its customers' load requirements from its own generation resources. To serve its load, the Electric System relied first on a partial requirements wholesale power contract with the Southern California Edison Company ("Edison") and then on a combination of wholesale power contracts. Due to changes in the California electric industry such as the now-abandoned deregulation of the California electric energy markets, unprecedented volatility of energy prices and the blackouts and power interruptions due to inadequate supplies of electric energy in 2000-2001,the City determined in the early 2000's that it was in the best interests of its mostly industrial customers to establish a significant generation resource connected directly to the City's distribution system. The City developed the MGS, a 120 MW base load, 134 MW full load combined cycle electric generation plant located adjacent to Station A designed to provide approximately 60% of the City's then expected requirements for base load electric power. The MGS commenced commercial operation in October 2005 and,except for a period of equipment repair,has been operating as a base load generation resource for the City since such date. See"—Power Supply Resources—Malburg Generating Station—Operation of Facility to Date." Since 2004, the City had pursued an economic development program focusing on the acquisition of land within the City and the assembly of parcels which would be consistent with the requirements of prospective industrial customers. In addition, the City sought to continue providing superior municipal services to support both existing and new industrial businesses in the City, such as fire and police services, community health services and infrastructure improvements. As part of the economic development program, the City also studied options to optimize the benefits of the existing Electric System resources and alternatives for serving projected Electric System requirements in light of the then current state of,and anticipated-developments in,the California electric markets. After reviewing its portfolio of Electric System resources and the available alternatives in serving customer load,the City determined to sell virtually all of its major transmission assets and rely on the California transmission system controlled by the California Independent System Operator Corporation ("CAISO") to provide for transmission of energy imported into the City. The City also determined that private ownership and operation of the MGS,with the City retaining the rights to the capacity and energy of the facility,provided the City with a resource base that was consistent with its original plan for significant local generation with less operational risk than City ownership,while affording the City an opportunity to fund a portion of its economic development program. Implementation of Resource Optimization Plan On April 10, 2008, pursuant to the Amended and Restated Purchase and Sale Agreement, dated as of December 13,2007,between the City and Bicent(California)Power LLC("Bicent"),an affiliate of Bicent Holdings and Natural Gas Partners,the City sold the MGS to Bicent in a cash transaction. Bicent assigned its rights and obligations with respect to the MGS to its affiliate, Bicent (California) Malburg LLC, a Delaware limited liability company. BCM has sold the capacity and the energy of the MGS to the City pursuant to the PPTA. See "— Power Supply Resources — Malburg Generating Station — Power Purchase Tolling Agreement." In addition, Bicent (California) Hoover LLC, a Delaware limited liability company and an affiliate of Bicent, has acquired the economic benefits and burdens of the City's interest in the Hoover Uprating Project(described below) on the terms set forth in the Hoover Contract for Differences between BCH and the City. See"—Power Supply Resources—Hoover Uprating Project—Hoover Contract for Differences." In a separate transaction, pursuant to a Purchase and Sale Agreement (the "TANC Agreement"), dated September 28, 2007, between the City and the Transmission Agency of Northern California ("TANC"), the City sold TANC its interest in the California Oregon Transmission Project. Additionally, in a separate transaction, the City sold its interests in the Mead-Adelanto Transmission Project and the Mead-Phoenix Transmission Project 19 pursuant to a Purchase and Sale Agreement(the "Starwood Agreement"), dated as of December 13, 2007,between the City and Starwood Energy Infrastructure Fund,L.P. The proceeds from the sale of the Electric System assets described above were used to redeem all then outstanding Electric System revenue bonds, provide funds for economic development in the City and increase the Electric System's cash reserves. A portion of the proceeds of the sale of the Electric System assets were used to fund a portion of the debt service reserve requirement for the bonds of the Vernon Natural Gas Financing Authority relating to a supply of prepaid natural gas for the City. Such Authority Bonds were refunded with the proceeds of the 2009 Bonds. See "ELECTRIC SYSTEM OBLIGATIONS — Gas Supply Agreements." Approximately $39.5 million of the proceeds of the Electric System assets allocated to reserves were applied to payments due under the PPTA during the first four years of the contract. After the completion of the transmission facility sales described above, the City no longer receives Transmission Revenue Requirements relating to such assets. The City continues to receive revenues associated with existing transmission service contracts with Edison and the Department of Water and Power of the City of Los Angeles("LADWP"). As more fully described below, the Electric System continues to include ownership interests or capacity rights in other electric facilities and the ownership of the interconnection and distribution system within the boundaries of the City. Management The Electric System is operated and maintained through the City's Gas and Electric Department, which is governed by the City Council. The terms of City Council members are staggered so that each City Council member serves a five year term and one City Council member is elected each year. The Gas and Electric Department is managed by the Director of Gas and Electric whose duties include overseeing the operation and maintenance of the Electric System's facilities,-metering, power purchasing, scheduling, billing and-settlements. The Director of Gas and Electric reports to the City Administrator. City Officials. The current members of the City Council are as follows: WW. Michael McCormick,Mayor,was first elected to the City Council in 1974 and has been a resident of the City since 1969. Mr. McCormick previously worked at the Safeway meat processing plant in the City for seven years prior to retiring after a 40-year career in the private sector. Current term expires in April 2016. William J. Davis, Mayor Pro Tempore, was first elected to the City Council in 1984, after originally being appointed to fill a vacant seat in 1981. Mr. Davis was born in Manila,Philippines and came to the United States in 1969. Mr. Davis worked at Southern California Edison Co. for 28 years prior to retiring in 1996. Current term expires in April 2018. Luz A. Martinez, Council Member, was elected to the City Council in 2012. Ms. Martinez was born in Mexico and came to the United States in 1965. Ms. Martinez worked 16-years in private industry as an administrative assistant. In 1987, Ms. Martinez was hired by the City as an administrative assistant in City Administrator's office and then transferred to the Vernon Fire Department. She worked over 23 years as Department Secretary to the Fire Chief. Current term expires in April 2019. Yvette Woodruff-Perez, Council Member, was elected to the City Council in April of 2015 to serve a full 5-year term. Her election to the City's five-member Council established the first-ever female council majority as well as the first-ever Latina majority in the City's nearly I I0-year history. For over a decade, Councilwoman Woodruff-Perez has worked in higher education and public safety communications. Current term expires in April 2020. Melissa Ybarra, Council Member, was elected to the City Council in February 2015 to fill the unexpired term of her late father and former Council Member Honorable Michael A. Ybarra. Ms. Ybarra is the fourth 20 generation of Ybarra family members to serve on the City Council. Ms.Ybarra grew up in the City and has lived in the City her entire life. Current term expires in April 2017. Information about the City Administrator and the Finance Director/City Treasurer are presented below: Mark C. Whitworth, City Administrator, was appointed as interim City Administrator in July, 2010 and was officially named City Administrator in September, 2010. Mr. Whitworth previously served as the City's Fire Chief and was employed by the City of Vernon's Class 1 rated Fire Department for over 23 years. He began his career as a firefighter in June 1989,was promoted to Captain in March 1995,Battalion Chief in July 2000,and Fire Chief in June 2005. Mr. Whitworth holds a Bachelor of Science degree from Whittier College and a degree in Fire Technology from Rio Hondo College. William Fox, Finance Director/City Treasurer, has been with the City since December 2012. He has over 30 years of professional experience. He has previously served at the Las Vegas Valley Water District as Chief Financial Officer. He also served as Assistant General Manager,Financial Services for Glendale Water&Power in Glendale, California, and held various management positons of increasing responsibility at Southern California Edison. Mr. Fox is a Certified Public Accountant and has a MBA degree from California State Polytechnic University at Pomona. Gas and Electric Department Executive Management. The following are brief resumes of the senior Gas and Electric Department management personnel who are responsible for Electric System operations. Carlos Fandino serves as the Director of Gas and Electric Department. Mr. Fandino provides overall direction,structure,control and reporting of the Electric System. Mr.Fandino has over 25 years of experience in the Gas and Electric Department and has held several positions including Station Operator, Senior Dispatcher and Engineering and Projects Manager. Mr.Fandino is currently responsible for the day-to-day operations of the electric transmission and distribution facilities, customer metering and operation and maintenance of City-owned electric generation resources. Mr. Fandino holds a Bachelor of Science Degree in Business Management from Woodbury University,where.:he:graduated magna cum,laude. Abraham Alemu is the Electric Resources Planning and Development Manager of the Gas and Electric Department. Mr. Alemu has over 22 years of experience in the Gas and Electric Department and is responsible for power resources procurement and management, customer service,regulatory compliance and program development. Mr. Alemu holds a Bachelor of Science degree in Electrical Engineering from California State University, Los Angeles and a Masters of Business Administration from Woodbury University. Mr. Alemu is a licensed Professional Engineer in the State of California and a member of the Institute of Electrical and Electronics Engineers. Ali Nourmohamadian is the Utilities Engineering Manager of the Gas and Electric Department. Mr. Nourmohamadian has over 24 years of experience in the Gas and Electric Department and is responsible for all aspects of electrical, gas and communications engineering and construction functions. Mr. Nourmohamadian holds a Bachelor of Science degree in Electrical Engineering from Marquette University, Milwaukee, Wisconsin. Mr. Nourmohamadian is a licensed Professional Engineer in the State of California and a member of the Institute of Electrical and Electronics Engineer. Prior Attempt to Disincorporate City; City Reform In December 2010, California Assembly Bill 46 ("AB 46"), an act to disincorporate the City and make it part of the unincorporated territory of Los Angeles County,was introduced into the State Assembly. AB 46 stated it was motivated by, among other things, a desire to eliminate alleged corrupt practices by City officials, including misuse of public funds and excessive salaries and concern with the close relationship between the City management and its relatively small number of residents. A companion bill,California Assembly Bill 781 ("AB 781"),was also introduced which, among other things, would have transferred the Electric System to a special district governed by the Board of Supervisors of Los Angeles County. The enactment of AB 781 was dependent on the enactment of AB 21 46. The City took the position that AB 46 violated the provisions of the California Constitution providing that a vote of the City electorate was necessary to repeal a California city charter. Both bills were opposed by many of the residents and businesses within the City as well as labor unions representing workers within the City. Although both bills were passed by the State Assembly, the bills were not approved by the State Senate and neither bill became law. In connection with the State Senate's consideration of AB 46 and AB 781, the City Council agreed to a reform program proposed by the State Senator for the senatorial district in which the City is located. The City Council placed before the electorate in November 2011 a series of Charter amendments to implement significant elements of the reform program. The Charter amendments were overwhelmingly passed by the voters and are now in effect, and City salaries have been adjusted to a level the City believes more closely reflects salaries for comparable positions in other California cities. One reform included the establishment of an Advisory Committee on Electrical Rates, which included representatives of businesses within the City, to advise the City with respect to changes in electric rates (see "ELECTRIC SYSTEM—Electric Rates— Business and Industry Commission"). In September,2011,a week after the State Senate vote on AB 46,the Joint Legislative Audit Committee of the State Legislature requested that the Bureau of State Audits undertake an audit of the City and its Gas and Electric Department. The City fully cooperated with the Bureau of State Audits and,in September 2014,the Bureau of State Audits concluded that although a few of the recommendations were still in progress, no further follow-up responses from the City were required. Although the City is not aware of any further attempt to disincorporate the City or any audits or investigations, the City cannot provide assurances that there will not be any future attempts to disincorporate the City or that there will not be any more reviews and audits of the City or that there will not be pressure for additional City reform. Should any future disincorporation attempts be successful,or should any future audits or investigations result in the identification or allegation of any impropriety, or should the City be required to implement additional reforms of its practices and procedures, the City cannot predict what effects, if any, such events would have on the City,its Electric System or the Bonds. Power Supply Resources I General The Electric System's current power supply resources consist of. (i) the PPTA for the MGS; (ii) the PVNGS Contract, a long-term power purchase contract with the SCPPA with respect to a portion of SCPPA's interest in the PVNGS; (iii) the CES with Western with respect to the Hoover Uprating Project; and (iv) two 5.75 MW simple cycle gas turbine generating units (the"H.Gonzales Generating Station") at Station A used for reserve purposes. The City also owns the Johnson&Heinz Diesel Plant consisting of five diesel generator units installed in 1933. The PPTA, the PVNGS Contract with SCPPA, the CES and the H. Gonzales Generating Station are collectively referred to as the "Committed Resources." For the Fiscal Year ended June 30, 2014, the Committed Resources provided approximately 85.19%of the energy supplied by the Electric System to meet customer load. In addition to the Committed Resources,the City has entered into short-term contracts to satisfy the remaining 14.82% load requirements of Electric System customers. During the Fiscal Year ended June 30, 2014,the City used energy purchased through short-term contracts rather than energy from the MGS when such short-term energy was available at a lower cost. While the City expects to continue utilizing short-term contracts to satisfy its load requirements 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 it is economically advantageous in providing for its customers' requirements or in connection with satisfying renewable energy portfolio requirements. For the Fiscal Year ending June 30, 2015, the City projects that the Committed Resources will provide approximately 79%of the energy supplied by the Electric System in such Fiscal Year to meet customer load,and short-term contracts will provide approximately 21%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. i 22 CITY OF VERNON ELECTRIC SYSTEM RESOURCES USED TO SATISFY CITY'S LOAD REQUIREMENT') Fiscal Year Ended June 30 2010 2011 2012 2013 2014 Short-Term Contracts(2) Actual Energy(3) 95,802 399,072 390,444 276,386 177,525 Percentage of Total Energy 8.10% 33.69%(7) 32.56%(7) 23.29% 14.82% Long-Term Contracts(4) Actual Energy(3) 206,885 0 0 0 0 Percentage of Total Energy 17.50% 0.00% 0.00% 0.00% 0.00% SCPPA Palo Verde Actual Energy(3) 87,389 92,630 91,859 92,746 90,542 Percentage of Total Energy 7.39% 7.82% 7.66% 7.82% 7.56% Hoover Uprating Actual Energy(3) 21,534 23,576 25,251 23,316 23,798 Percentage of Total Energy 1.82% 1.99% 2.11% 1.96% 1.99% MGS/PPTA(5) Actual Energy(3) 770,371 669,028 691,575 794,191 906,096 Percentage of Total Energy 65.17% 56.47% 57.67% 66.92% 75.63% City-Owned Generation(6) Actual Energy(3) 167 346 127 64 164 Percentage of Total Energy 0.01% 0.03% 0.01% 0.01% 0.01% City's Load Requirement Actual Energy(3) 1,182,148 1,184,652 1,199,256 1,186,702 1,198,124 Percentage of Total Energy 100.00% 100.00% 100.00% 100.00% 100.00% Source:City of Vernon (1) Totals may not add due to rounding. (2) Term of less than one year and spot market purchases. (3) Megawatt hours("MWhs"). (4) Contracts,other than the contracts for the Committed Resources,with a term of one year or longer. (5) As discussed above in the caption "— Implementation of Resource Optimization Plan," the City has sold the MGS and entered into a long term contract with the purchaser for 100% of the output from the MGS. See "THE ELECTRIC SYSTEM—Power Supply Resources—Malburg Generating Station—Power Purchase Tolling Agreement"below. (6) Includes resources from the H.Gonzales Generating Station. (1) Increase in short-term contracts was due to lower utilization of power from MGS due to lower power prices in the market and the expiration of a long-term contract in the prior Fiscal Year. Malburg Generating Station Power Purchase Tolling Agreement. Pursuant to the PPTA with Bicent(California)Malburg LLC,the City acquired all of the capacity and energy of the MGS for a fifteen year term ending in 2023. The term can be extended by BCM for an additional five years. The City dispatches the MGS and is the Scheduling Coordinator for all energy and ancillary services from the MGS in accordance with the requirements of the CAISO tariff. The City has the right to designate a portion of the MGS capacity and associated energy to provide resource adequacy for the Electric System and ancillary services. The City is to pay a fixed capacity charge under the PPTA based on the per kilowatt demonstrated capacity of the MGS. The fixed capacity payments escalate over the term of the PPTA. The amount of MGS capacity on which the capacity payments are based is subject to periodic testing and adjustment. If the MGS is not available for specified hours during specified times of the year,the amount of the capacity payment is reduced. The City is to pay a fixed amount(subject to escalation)for each megawatt hour of electricity produced by the MGS. In addition, a change in the heat rate of MGS from the standards specified in the PPTA trigger an 23 j adjustment to the energy charge. If the heat rate improves, BCM will be entitled to additional payments from the City. If the heat rate deteriorates,the City will be entitled to payments from BCM. The City is and will be responsible for supplying the MGS with natural gas. Because interest on the Authority Bonds was tax-exempt, since the sale of the MGS to Bicent in April 2008, the City has not used the Gas Supply as fuel for the MGS. Instead, from the City has been selling the monthly deliveries of the Gas Supply in spot market transactions and using the proceeds to purchase electricity to serve load not met by City-owned facilities,the MGS or power purchase contracts. The City entered into a contract to sell natural gas to SMUD,in an amount equal to a portion of the Gas Supply remaining to be delivered less gas to be delivered to retail customers of the City's gas department. See "ELECTRIC SYSTEM OBLIGATIONS — Gas Supply Agreements." The contract provides for payment in each month for the amount of gas delivered by the City under such contract in the previous month. As noted above,the City has been providing natural gas as fuel for the MGS primarily through spot market purchases. The City continues to monitor the market for natural gas and may,in the future,enter into contracts for the purchase of natural gas for the MGS if the City determines the terms of such contracts are beneficial to the City. In connection with its purchase of natural gas, the City has established the Fuel Cost Adjustment Billing Factor (the "FCABF")to pass through to customers increased costs related to fuel. See"—Electric Rates." To the extent the City fails to provide sufficient natural gas for operation of the MGS, BCM will be excused from providing energy from the MGS in response to dispatch notices from the City. Except as otherwise provided in the PPTA with respect to scheduled outages and events of force majeure, in the event a dispatch notice to deliver energy cannot be met by the MGS,BCM may provide substitute energy. The amount of substitute energy is limited by California law to 15%of the total contracted energy under the PPTA. In the event BCM cannot satisfy a dispatch notice to provide energy either from MGS or with substitute energy, then BCM is obligated to pay the City the costs of replacement energy in accordance with the PPTA. Except as agreed to by the City,scheduled outages in each contract year are limited to 336 hours(provided, however, that the facility may schedule a major overhaul every 20,000 equivalent operating hours, during which contract year scheduled outages shall not exceed 672 hours) and time required to perform Siemens recommended maintenance. Scheduled outages from June 1 through October 31 of each year are limited and may only be scheduled with the consent of the City. BCM has covenanted in the PPTA to operate, inspect, maintain and repair the MGS in accordance with applicable law, required permits and good utility practices. See "— Operation of Facility to Date"below. The PPTA provides that, in connection with the MGS, BCM shall comply with all legal, regulatory or industry standards applicable to owners, operators and the ownership and/or operation of generating facilities within the State,including the North American Electric Reliability Council mandatory reliability standards. The PPTA also provides that BCM shall be responsible for all costs and charges relating to such compliance except that the City is responsible for any fee for greenhouse gas ("GHG") emissions, including the procurement of emission credits, attributable to the operation of the MGS and effective after April 10, 2008. See "FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY"for more information on such standards. A party's obligation to perform pursuant to the PPTA, other than the obligation to make payments, are to be suspended when such performance is prevented by an event of force majeure. If the party cannot resume performance within six months due to the event of force majeure, the other party may terminate the PPTA with no payment obligation other than for accrued amounts. The PPTA limits the amount of BCM's debts secured by a security interest in, or mortgage on, the MGS. The City has a security interest in and mortgage on the MGS to secure [output] amounts owed to the City under the PPTA. The City's security interest and mortgage is subordinate to the security interest and mortgage granted by BCM to lenders in connection with its financing of the purchase of the MGS. Under the PPTA,BCM is to take the actions specified in the PPTA to establish and continue the City's security interest in,and mortgage on,the MGS. Events of default under the PPTA applicable to both parties are: a failure to make a payment due thereunder within ten days of notice; any materially false or misleading representation or warranty; unexcused failure to perform a material covenant or obligation(other than those constituting a separate event of default)within fifteen days of notice; a bankruptcy event(as defined in the PPTA); or a merger, transfer of assets or consolidation 24 occurs and the resulting surviving or transferee entity fails to assume obligations under the PPTA to the satisfaction of the other party. Events of default under the PPTA with respect to BCM are: unless otherwise excused under the PPTA,failure of MGS to maintain capacity at specified a level for a specified time;failure to provide required credit support;BCM sells, or enters into a contract to sell,capacity or energy of the MGS to an entity other than the City; or BCM assigns the PPTA in violation of its terms. Upon the occurrence of an event of default,the non-defaulting party can designate an early termination date for the PPTA with all events of default other than a failure to pay amounts due under the PPTA or a bankruptcy event requiring an opportunity to cure. If an early termination date for the PPTA is established, the defaulting party is to pay the other party its economic loss, if any, as a result of such termination plus costs. For a schedule of the expected payments to be payable by the City under the PPTA and the Hoover Contract for Differences(See"—Hoover Uprating Project—Hoover Contract for Differences"below), see the table in Note 10 under"Power Purchase Commitments"in the Annual Financial Report for the Fiscal Year ended June 30, 2014, included in APPENDIX A, which table shows expected payment amounts net of the amortization of deferred gains. Description of Facility. The MGS is a 120 MW base load/134 MW full load combined cycle,natural gas- fired,electric power plant located adjacent to Station A. The MGS achieved commercial operation in October 2005. The MGS includes two Siemens (formerly Alstom) GTXI00 natural gas-fired combustion turbine generators ("CTGs")a steam turbine generator("STG"). 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 distribution facilities at the Vernon Substation,located at Station A. Operation of Facility to Date. Prior to its sale in 2008, the City had been operating the MGS since commercial operation commenced in 2005. As described under"—Implementation of Resource Optimization Plan," the City has sold the MGS,but retains the rights to the capacity and energy of the facility pursuant to the PPTA, for a term which ends in 2023 and may be extended by BCM for an additional five years. In the Fiscal Year ended June 30, 2014, the MGS provided 906,096 MWhs of energy to the City, and for the Fiscal Year ending June 30, 2015,the MGS is projected to provide approximately 815,035 MWhs of energy to the City. SCPPA Palo Verde Nuclear Generating Station Interest General. The 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's 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's license renewal application, allowing the three units to extend operation for an additional 20 years until 2045, 2046 and 2047,respectively. The owners of PVNGS approved such extensions. Arizona Public Service Company("APS")is the operating agent for PVNGS. SCPPA is a joint action agency in which the City participates. SCPPA has a 5.91% ownership interest in the PVNGS. The City has a 4.90%generation entitlement interest in SCPPA's ownership share in PVNGS through the City's "take-or-pay" PVNGS Contract with SCPPA (totaling approximately 11 MWs of dependable capacity) and 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. Co-owners of PVNGS include 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"); Edison; El Paso Electric Company;Public Service Company of New Mexico; SCPPA and the City of Los Angeles. For the Fiscal Year ended June 30, 2014, PVNGS provided 90,542 MWhs of energy to the City. See "ELECTRIC SYSTEM OBLIGATIONS —Power Sales Contract with SCPPA for PVNGS" for a discussion of the City's cost in connection with PVNGS for the Fiscal Year ended June 30,2014. As of April 30,2015,for the Fiscal 25 I Year ending June 30, 2015, PVNGS has provided 77,558 MWhs of energy to the City, and is projected to provide approximately 92,342 MWhs of energy for the entire Fiscal Year ending June 30,2015. Nuclear Regulatory Commission. 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. 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 are working to analyze information from the Japan incident and develop action plans for U.S.nuclear power plants. Additionally,the NRC is performing its own 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 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. The orders require prompt implementation of the safety enhancements and to complete implementation within two refueling outages or by December 31, 2016, whichever comes first. The NRC also issued a request for information,requesting that each reactor operator reevaluate seismic and flooding hazards at its site using present-day methods and information, conduct walkdowns of its facilities to ensure protection against the hazards in its current design basis, and reevaluate emergency communications systems and staffing levels. On March 20,2012,the NRC published an advanced notice of public rulemaking related to station blackout conditions. On April 18, 2012, the NRC published an advanced notice of public rulemaking related to strengthening and integrating onsite emergency response capabilities. On May 31,2012,the NRC staff issued guidance with respect to assessing emergency preparedness communications and staffing and performing seismic and flooding walkdowns. j On July 13, 2012, the NRC staff provided the Commission with a paper outlining its proposed actions on the remaining recommendations. On August 30, 2012,the NRC issued implementation guidance for each of the orders issued in March 2012. On January 4, 2013,the NRC issued guidance to enable U.S. nuclear power plant operators to perform the seismic and flooding hazard assessments,which was done 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. As of the date of this Official Statement, PVNGS has purchased additional diesel generators, pumps and fire trucks, and has also 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 power plant in Japan, which initiatives include, 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 shut-down of a unit, or both, 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. Construction and Maintenance. PVNGS capital projects during the next 10 years are expected to include a cyber security upgrade, a cooling tower life extension project, a generator excitation system upgrade, equipment replacement or upgrades such as reactor coolant pump motor replacements and generator stator rewinds, building upgrades and other miscellaneous projects. The City estimates that it will be responsible for approximately $3.5 million of the costs of such projects over this 10 year period. I 26 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 on a 2014 estimate of decommissioning costs, which uses the extended license expiration date of 2047 and is the most recent estimate available, 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$142.4 million,of which the City's portion is $7 million. Under the current funding plan, the City estimates that its share of the decommissioning costs relating to the City's interest in PVNGS through SCPPA will be fully funded by accumulated interest earnings by the extended license expiration date of 2047, assuming 6.8%per annum in future investment returns and a 6% per annum cost escalation factor. No assurance or guarantee can be given that investment earnings will be sufficient to fully fund the City's share of decommissioning costs relating to the City's interest in PVNGS. I 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 January 31, 2015, 124 casks, each containing 24 spent fuel assemblies, have been stored. If it is ever 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, 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. In addition,-beginning in 2016,PVNGS is expected to use the newly designed casks that contain 36 spent fuel assemblies allowing the dry cask storage facility to accept more spent fuel. 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. 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. Modern insulation technology made it possible to "uprate" the nameplate capacity of the existing generators. The U.S. Bureau of Reclamation(the"Bureau of Reclamation") owns and operates the Hoover Dam facility and the Western Area Power Administration markets the power from the facility. The Hoover Power Plant consists of 17 generating units and two service generating units with a total installed capacity of approximately 2,074 MWs. 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 is entitled 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. The City is responsible for its share of the operating costs of the facility. Due to the enactment of H.R.470, "Hoover Power Allocation Act of 2011," the City expects to be allocated such 22 MWs of total capacity through September 2067. Drought Conditions. Because of prolonged drought conditions that have resulted in record low lake 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 its February 2015 24-month study,the Bureau of Reclamation forecasts relatively stable water levels and Hoover Plant capacity, with the lowest point forecasted to occur in November 2016,with a total Hoover Plant capacity of 930.2 MWs and a 61%generating unit availability. 27 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 the 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. [To further elaborate on energy/capacity issues]. The Hoover Plant customers, including the City, together with certain other parties, have implemented a plan in cooperation with the Bureau of Reclamation and the United States Fish and Wildlife Service to mitigate negative effects on the Hoover Plant's energy production. Hoover Contract for Differences. At the time of the closing of the sale of the MGS (See "— Implementation of Resource Optimization Plan"), the City entered into the Hoover Contract for Differences with Bicent (California) Hoover LLC. The Hoover Contract for Differences generally provides for the City's swapping the economic benefits and burdens under the CES with Western for fixed energy and capacity payments. For each month through September 2017, a monthly payment (the "Monthly Swap Payment") is to be determined. The Monthly Swap Payment is calculated by netting the City payments for capacity and energy under the CES for the month against specified fixed (subject to escalation) energy and capacity prices. To such netted amount certain credits under the CES are added and certain payments under the CES are subtracted. If the resulting Monthly Swap Payment is a positive number, the City is to pay this amount to BCH. If the resulting Monthly Swap Payment is a negative number,BCH is to pay the absolute value of this amount to the City. Payments under the Hoover Contract for Differences are to be made monthly as Operation and Maintenance Expenses of the Electric System and amounts due from each of the parties under the Hoover Contract for Differences for any month are to be netted against each other. Events of default under the Hoover Contract for Differences applicable to both parties are: a failure to make a payment due thereunder within ten days of notice; any materially false or misleading representation or warranty; unexcused failure to perform a material covenant or obligation (other than those constituting a separate event of default) within fifteen days of notice; a bankruptcy event (as defined in the Hoover Contract for Differences); or a merger, transfer of assets or consolidation occurs and the resulting surviving or transferee entity fails to assume obligations under the Hoover Contract for Differences to the satisfaction of the other party. Events of default under the Hoover Contract for Differences with respect to City are: a termination of the CES by the City or a termination of the CES due to a default or any other action by the City. Upon the occurrence of an event of default,the non-defaulting party can designate an early termination date for the Hoover Contract for Differences with all events of default other than a failure to pay amounts due under the Hoover Contract for Differences or a bankruptcy event requiring an opportunity to cure. If an early termination date for the Hoover Contract for Differences is established,the non-defaulting party is to calculate an amount equal to the present value of its loss or gain (exclusive of costs) resulting from the termination of the Hoover Contract for Differences. Any such loss (plus costs) is to be paid by the defaulting party to the non-defaulting party. Any such gain(less costs)is to be paid by the non-defaulting party to the defaulting party. If the CES is terminated by Western other than as a result of a default or other action by the City, the Hoover Contract for Differences will automatically terminate and no payments by either party will be due as a result of such termination. For a schedule of the expected payments to be payable by the City under the Hoover Contract for Differences and the PPTA, see the table in Note 10 under"Power Purchase Commitments" in the Annual Financial Report for the Fiscal Year ended June 30, 2014, included in APPENDIX A, which table shows expected payment amounts net of the amortization of deferred gains. 28 Power Purchase Agreements Long-Term Power Contract. Other than the contracts for the Committed Resources 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 that 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 on then existing market conditions, which can be affected by a number of factors. For the Fiscal Year ended June 30, 2014, such short-term power contracts accounted for a total of 177,525 MWhs of energy to the Electric System (approximately 14.82%of all energy to the Electric System). For the Fiscal Year ending June 30,2015, short-term power contracts are projected to account for a total of 245,889 MWhs of energy to the Electric System (approximately 21% of all energy to the Electric System). Reserve Generating Facilities H. Gonzales Generating Station. The City owns the H. Gonzales Generating Station, located at Station A and consisting 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. The City bids these units on a daily basis for dispatch by 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. Johnson &Heinz Diesel Plant. The City owns the Johnson&Heinz Diesel Plant, located at Station A and consisting of five diesel generator units installed in 1933. Each unit has a net capacity of 4.5 MWs. These units have an operational restriction of 199 hours each per year. Renewable Energy Resources In accordance with the California Renewable Energy Resources Act,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. More specifically: the first compliance period was from January 1, 2011 to December 31, 2013, during which an average of 20% of the Electric System's retail sales were required to be procured from eligible renewable energy resources. During the second compliance period, from January 1, 2014 to December 31, 2016,the Electric System must make reasonable progress each year to ensure it achieves 25% of retail sales from eligible renewable energy resources by December 31,2016. During the third compliance period, from January 1, 2017 to December 31,2020, with the adoption of the regulations to enforce SBX 1-2 identified herein (see "FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY — California Climate Change Policy Developments — California Renewable Electric Standard"herein),the CEC is requiring the Electric System to procure eligible renewable energy resources with 27%of its 2017 retail sales,29%of its 2018 retail sales,3 1%of its 2019 retail sales,and 33%of its 2020 retail sales. The main provisions of the State's applicable requirements relating to renewable energy resources are currently contained in SBX 1-2 and the California Global Warming Solutions Act ("AB32"). See "FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY—California Climate Change Policy Developments." Various factors outside of the City's control significantly impacted the biomethane gas contracts that the City had in place. As a result, the City did not realize the specified target procurement for the first compliance period under SBX 1-2. The main factor was that on March 28,2012,the CEC suspended the Renewable Portfolio Standard eligibility guidelines for certification of power plants generating electricity using biomethane gas. Effective April 30, 2013, the CEC lifted the suspension of the eligibility of electric generating facilities using biomethane gas in the Renewable Portfolio Standard Program. Consequently,the MGS received certification in July 2013. During the 17-month period from the point of the CEC suspension through the plant certification in July 2013, the City's biomethane gas suppliers delivered only minimum quantities of biomethane gas due to the uncertainties surrounding the plant certification. The City expects to satisfy the second compliance period and plans to satisfy the third compliance period under SBX 1-2,as described above. 29 The City's renewable power resource portfolio, as well as certain potential options for additional renewal power resources in the future, is described below. Current Renewable Energy Resources. Contracts for Bio-Gas. To satisfy the initial SBX 1-2 requirements, the City contracted for a supply of pipeline quality biomethane gas (referred to herein as bio-gas) with Element Markets and Clean Energy as fuel for the MGS as an alternative to natural gas. Such use of bio-gas as fuel made MGS the City's primary renewable resource to satisfy the SBX 1-2 requirements with respect to the first compliance period,and would potentially serve as the primary renewable source to satisfy the subsequent compliance periods under SBX 1-2. Implementation of this change of fuel to bio-gas at MGS has been and is projected to be a cost effective option for adding renewable energy resources to the current Electric System portfolio. The initial contract year for such contract with Element Markets commenced on March 2,2012. Based on two existing transaction confirmations for such contract,the City receives from Element Markets approximately 2,500 MMBtu of bio-gas (and/or bio-gas equivalent renewable energy)per day. The City currently has a 10 year contract with Element Markets,terminating in the year 2022. The City also has a contract for bio-gas with Clean Energy, the initial contract year for which commenced in August 1, 2013 and terminated on July 31, 2014, subsequent to which the City entered into a 10 year contract with Clean Energy, terminating in the year 2022. Based on an existing transaction confirmation for such contract, the City receives approximately 1,875 MMBtu of bio-gas (and/or bio-gas equivalent renewable energy) per day. Such contracts are expected to assist the City in satisfying the State's applicable requirements relating to renewable energy resources. Renewable Energy Credits. The City also purchases renewable energy credits as an option to satisfy the SBX 1-2 requirements. In the Fiscal Year ended June 30, 2014, the City purchased 34,000 MWhs of such energy credits and, for the Fiscal Year ending June 30,2015,the City projects to purchase approximately 34,647 MWhs of such energy credits. Potential Renewable Energy Resources. Wind Farms. 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 LADWP and the other by Florida Power and Light Company. In February 2010, the City then sold approximately 13,000 acres of this land to NextEra(FPQ 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 Tehachapi land owned by the City 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 providing power from renewable resources for the Electric System's renewable power resource portfolio. Renewable Power Purchase Agreements. The City Council has approved two power purchase agreements that could provide for additional renewable power resources: a power purchase agreement with Astoria 11 LLC (through SCPPA) and a power purchase agreement with the Sanitation Districts of Los Angeles County (also through SCPPA). Astoria Il LLC ("Asotria") entered into a long-term power purchase agreement with SCPPA to build a Solar Photovoltaic facility that has a net capacity of approximately 175 MWs. This facilitiy, located in Kern County, is expected to be available for commercial operation by December 31, 2016 with SCPPA taking control of 75 MWs of the power produced. The City, in conjunction with five other municipal utilities from SCPPA, is participating in a power purchase agreement to purchase the energy from such facility for 20 years. The City 30 Council has approved a power purchase agreement(through SCPPA)with Astoria for its renewable energy that will entitle the Electric System to 20 MWs of capacity from January 2017 through December 2021,and 30 MWs for the remainder of the contract period to December 2036. SCPPA,on behalf of several California cities, including the City, entered into a power purchase agreement for 43 MWs of generating capacity relating to the Puente Hills Landfill Gas-to-Energy Project constructed by the Sanitation Districts of Los Angeles County. The commercial operation date is currently expected to be January 1, 2017, in which case the agreement would expire on December 31, 2030. The City Council has approved of the power purchase agreement with the County Sanitation District of Los Angeles County (through SCPPA) for its renewable energy that will entitle the City to 10 MW of capacity for the term of the contract. Renewable Pass-Through Charge. As the City plans to add renewable energy resources to its portfolio, it has implemented a Renewable Energy Cost Adjustment Factor (the "RECAF"), which is added to its Electric System customer bills. While the RECAF became effective with the bills for January, 2012, the City did not have any charges under the RECAF until 2013. The RECAF is to recover the costs of renewable energy resources in excess of non-renewable market power. See"—Electric Rates—Renewable Energy Cost Adjustment Factor"below. Interconnection 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 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. The City is implementing a multi-year Electric Distribution System Master Plan to replace older facilities and to upgrade the distribution system. See "THE ELECTRIC SYSTEM—Capital Requirements." Developments Affecting the Power Supply The City relied on short-term (less than one year) power purchase contracts to provide approximately 14.82%of the energy delivered by the Electric System in the Fiscal Year ended June 30,2014. The City anticipates relying on new power purchase contracts to provide for current load and any growth in its customer load not met by Committed Resources. A number of actions have taken by government officials and regulators which have an impact on the amount of power the City must have available to have resource adequacy and the nature of generation resources which the City must include in its resource base. Certain elements of these actions are described below. Resource Adequacy 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, more efficient and cost-effective use of resources, and to create technology upgrades that would.strengthen the entire CAISO computer system. The redesigned 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. (a) An integrated forward market for energy, ancillary services and congestion management that operates on a day-ahead basis; (b) Congestion management that represents all network transmission constraints; (c) Congestion Revenue Rights to allow market participants to manage their costs of transmission congestion; I i i 31 !I I (d) Local energy prices by price nodes (approximately 3,000 nodes in total), also known as locational marginal pricing;and (e) 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 AB 380, which requires the CPUC to establish resource adequacy requirements for all LSEs within the CPUC's jurisdiction. Municipally-owned utilities such as the City's Electric System, were not included in AB 380. In addition, AB 380 requires publicly-owned utilities 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 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. The City currently has satisfied this reserve margin requirement with the PPTA for energy from the MGS, PVNGS,Hoover Plant and H. Gonzales Generating Station, and the City believes it will continue to have sufficient power resources to satisfy the system capacity requirements as required by MRTU and AB 380. Resource Mix SB-1368 (Chapter 598, Statutes of 2006) provides for a restriction on the negotiation of contracts for baseload fossil fuel electric generating resources that exceed the rate of emissions for GHG for existing combined- cycle natural gas baseload generation and provides for the California State Energy Resources and Conservation + Development Commission, commonly known as the California Energy Commission (the "CEC"), to establish a regulatory framework necessary to enforce the GHG emission performance standard for publicly-owned utilities. The CEC adopted regulations establishing the same standards as were adopted by the CPUC with respect to California's investor-owned utilities (the "IOUs") under SB-1368. For more information on SB-1368, see "FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY — California Climate Change Policy Developments—GHG Emissions Performance Standard and Financial Commitment Limits." For further discussion of other environmental legislation and regulations, see "FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY." Capital Requirements In 2006, an Electric Distribution Master Plan (the "Distribution Master Plan") was developed for the Electric System which included a five-year capital improvement program for the Electric System's distribution and interconnection facilities. The Distribution Master Plan categorized projects generally into safety, capacity, reliability, operability and street improvements with most of the improvement projects designed for the maintenance I and upgrading of facilities to serve existing load("Maintenance Improvements") and the balance to serve new load ("Additional Improvements"). The 2006 Distribution Master Plan was updated in 2010 to provide for capital improvements in Fiscal Years 2011 through 2015. The updated Distribution Master Plan identified Maintenance Improvements consisting primarily of upgrading from 7 kV to 16 kV service facilities, substation facility replacements and upgrades,pole replacements,undergrounding of facilities and street improvements and Additional Improvements consisting of additional substation facilities. Since the 2010 update of the Distribution Master Plan, the City has developed a capital improvement program for Fiscal Years 2012 through 2020. The program includes approximately $66.2 million of capital improvements in Fiscal Years 2012-2016 of which approximately $30.5 i i 32 } million is for Maintenance Improvements and approximately$35.7 million is for Additional Improvements. Of such amounts for Fiscal Years 2012-2016, approximately$57.2 million has been expended. The program also includes approximately $38.4 million in capital improvements in Fiscal Years 2017 through 2020 of which approximately $12.8 million is for Maintenance Improvements and$25.6 million is for Additional Improvements. The following table lists the expected annual capital requirements for the Electric System to be paid from amounts in the Light and Power Fund (not including proceeds of the 2012 Bonds) for the five Fiscal Years ending June 30,2015 through 2020: Fiscal Year Capital Requirements from Ending June 30 Light and Power Fund 2015 $8,105,643 2016 14,255,451 2017 15,544,223 2018 11,410,092 2019 6,205,699 2020 5,240,641 Total $60,761,749 Source:City of Vernon Largest Customers The Electric System's ten largest customers (by electricity usage) for the Fiscal Year ended June 30, 2014 accounted for approximately 40.8% of the Electric System's retail energy sales for such period, and the Electric System's 15 largest customers accounted for approximately 47.2% of the Electric System's retail energy sales for such period. No single customer accounted for more than approximately 9.9%of the Electric System's retail energy sales during such period. The table below sets forth such ten largest customers (by electricity usage) for the Fiscal Year ended June 30,2014. CITY OF VERNON ELECTRIC SYSTEM TEN LARGEST CUSTOMERS For Fiscal Year Ended June 30,2014 Years In Business Name Vernon Type of Business MATHESON TRI GAS 8 Chemical Processing OWENS ILLINOIS INC 70 Container Packaging CLOUGHERTY PACKING 70 Food Processing REHRIG PACIFIC CO 41 Plastics PABCO PAPER PRODUCTS CO 57 Building Materials CROWN POLY INC 16 Plastics OVERHILL FARMS INC 23 Food Processing EXIDE TECHNOLOGIES DEBTOR IN 50 Environmental Recycling POSSESSION(1) U S GROWERS COLD STORAGE INC 40 Cold Storage PREFERRED FREEZER SERVICES INC 13 Cold Storage 0) Exide Technologies,the eighth largest customer during the Fiscal Year ended June 30,2014,recently planned to phase out its operation in the City over the coming several years. Such customer accounts for an annual net load impact of approximately $250,000. Source:City of Vernon I 33 Electric Rates General The Electric System's retail rates are established by the City Council and are not subject to regulation by the California Public Utility Commission or any other state agency. See"—Rate Regulation" herein. The Electric System provides no free service. The retail rates include a 3% surcharge for payments in lieu of tax and franchise payments ("Franchise Payments"). Customers are assessed a 2.85% public benefits surcharge under California Assembly Bill 1890 of 1996("AB 1890"). Prior to the addition of the AB 1890 public benefits surcharge in 1998, the rates had not been adjusted by the City Council since 1984. Over the last ten years (since January 1, 2005), the rates have been increased eleven times as indicated in the table below. CITY OF VERNON ELECTRIC SYSTEM PERCENTAGE CHANGE IN ELECTRIC RATES (LAST TEN YEARS) Average Percent Effective Date Increase in Rate July 1,2014 5.00% July 1,2013 2.00 January 1,2013 7.80 July 1,2012 7.80 January 1,2012 8.00 July 1,2011 8.00 January 1,2010 4.70 December 1,2008 5.00 December 1,2007 5.00 November 1,2006 5.00 June 1,2005 4.70 Source: City of Vernon Additional rate increases have been approved by the City Council. Such rate increases and their effective dates are 3.5%, 3.0%and 2.5%to be effective on July 1 of 2015,2016,and 2017,respectively. The projected operating results assume such rate increases as well as additional rate increases that have not been approved by City Council and require City Council approval will take effect. See "ELECTRIC SYSTEM FINANCIAL INFORMATION—Projected Operating Results and Debt Service Coverage"herein. Rate Regulation The City sets rates, fees and charges for electric service provided by the Electric System. The authority of the City to impose and collect rates and charges for electric service by the Electric System is not subject to the general regulatory jurisdiction of the CPUC. Currently neither the CPUC nor any other regulatory authority of the State of California nor the FERC reviews the Electric System's retail rates and charges. The CEC is authorized to evaluate rate policies for electric energy as related to the goals of the Energy Resources Conservation and Development Act and to make recommendations to the Governor, the Legislature and publicly owned electric utilities. 34 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 Commission meets quarterly to provide input and make recommendations to the City on a number of matters relating to or impacting business and industrial development with the City, including electric rate adjustments. The input and recommendations provided by the Commission are not binding on the City. Fuel Cost Adjustment Billing Factor In response to then-existing volatility in the cost of natural gas since the disruption of the California energy markets, the City in 2006, entered into the Supply Agreement with the Authority for the purchase of a supply of prepaid natural gas to be supplied to the Authority from the Supplier under the Purchase Agreement,which Purchase Agreement has been assigned from the Authority to the City (see "ELECTRIC SYSTEM OBLIGATIONS — Gas Supply Agreement"). In addition,the City established the FCABF in connection with the cost of natural gas related to power generation and purchases, which is calculated and payable on a monthly basis. The FCABF went into effect on July 1,2008 and is added to all retail customer bills based on electrical consumption. The FCABF adds an amount to each retail bill to recover the excess over $7.50 per MMBtu the City pays for natural gas and the embedded cost of natural gas in power purchased by the City. Renewable Energy Cost Adjustment Billing Factor To provide for the payment of additional costs associated with satisfying the renewal energy portfolio standards for the Electric System, the City has approved the RECAF, which is calculated and payable on a monthly basis. 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 have 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. 35 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, 2010 2011 2012 2013 2014 Residential 6.36 6.75 7.10 8.47 9.84 Small Industrial 9.96 10.35 11.39 13.30 14.33 Large Industrial 8.84 9.14 9.98 11.38 12.13 Other 11.92 12.64 13.78 11.49 17.02 Weighted Average 9.21 9.55 10.46 12.03 12.90 Source:City of Vernon All electric bills are due and payable on the date of billing and become delinquent 20 days thereafter. If such bills remain unpaid on the 35th day after billing, all electric services are subject to termination(in accordance with applicable law)until all fees,charges,penalties and the entire delinquent balance have been paid. Uncollectible Accounts The City considers its write offs for uncollectible accounts to be low by electric utility industry standards for urban areas. The annual write offs for uncollectible accounts have been less than 0.6% for each of the last five Fiscal Years. CITY OF VERNON ELECTRIC SYSTEM UNCOLLECTIBLE ACCOUNTS Fiscal Year Uncollectible Percent of Ended June 30 Revenues Gross Billings 2010 $193,715 0.183% 2011 120,009 0.104 2012 100,000 0.082 2013 757,969 0.535 2014 388,221 0.258 Source: City of Vernon Employee Relations As of June 30, 2014, 37 full-time equivalent City employees were assigned to the Electric System. Additionally, other City personnel provide support services to the Electric System as required, including personnel from the City's Finance Department and the office of the City Attorney. [Five/Six] labor unions represent a portion of the City's employees: the Vernon Police Management Association, Vernon Fire Management Association, Vernon Firemen's Association, International Brotherhood of Electric Workers, and Teamsters. There have been no strikes or other work stoppages against the City within the last twenty years. 36 CaIPERS. Retirement benefits to City employees, including those assigned to the Electric System, are provided through the City's participation in the California Public Employees Retirement System, an agent multiple- employer retirement system that acts as a common investment and administrative agent for participating public entities within the State of California ("CaIPERS"). CaIPERS acts as a common investment and administrative agent for participating public entities within the State, including the City. CaIPERS produces a comprehensive annual financial report and actuarial valuations that include financial statements and required supplementary information. Copies of the CaIPERS comprehensive annual financial report and actuarial valuations may be obtained from CaIPERS Financial Services Division. The information presented in these reports is not incorporated by reference in this Official Statement. The State-required City employee salary contributions of 8% for miscellaneous employees and 9% for safety members (police and fire personnel) are paid by the employees through pre-tax payroll deductions. In prior years, employee contributions were subsidized by the City; however, effective April 8, 2010, contributions were made by the employees. The City is required to contribute the remaining amounts necessary to fund the benefits for its members,using the actuarial basis adopted by the CaIPERS Board of Administration. The City's contributions to CaIPERS fluctuate each year and include a normal cost component and a component equal to an amortized amount of the unfunded liability. The CalPERS Board of Administration has adjusted and may in the future further adjust certain assumptions used in the CaIPERS actuarial valuation, which adjustments may increase the City's required contributions to CaIPERS in future years. Accordingly, the City cannot provide any assurances that the City's required contributions to CaIPERS in future years will not significantly increase(or otherwise vary)from any past or current projected levels of contributions to CaIPERS. The City's and employees' total contribution to CaIPERS for the year ended June 30,2014 was$5,391,298 and $2,000,380, respectively, of which total amount the Electric System's and its employees' contributions were $609,506 and $295,869, respectively. The City has budgeted $6,536,809 for CaIPERS contributions for the year ending June 30,2015,of which total amount the Electric System's and its employees' contributions are budgeted to be $748,469 and $322,477, respectively. The City's contribution rates as a percentage of covered payroll were 16.456%for miscellaneous plan members(which includes employees assigned to the Electric System)and 28.602% for safety plan members in Fiscal Year 2014. The City has contributed its annual pension cost payments with respect to all employees as required by CaIPERS. Based on the assumptions from the actuarial valuation performed in June 30, 2011,as of June 30, 2013, the City had funded 76.3%of its actuarial accrued liability with respect to its miscellaneous plan members,and 73.8%of its actuarial accrued liability with respect to its safety plan members. The following schedules present the City's funded status as of June 30, 2013 based on the actuarial assumptions consistent with the June 30,2011 actuarial valuation: Miscellaneous Plan Schedule of Funding Progress (as of June 30,2013) Unfunded Actuarial Accrued Actuarial Value Actuarial Accrued Annual Covered UAAL as a%of Liability(AAL) of Assets Liability(UAAL) Funded Ratio Payroll Covered Payroll (a) (b) (a)—(b) (b)/(a) (c) [(a)—(b)/(c)] $122,747,737 $93,664,038 $29,083,699 76.3% $10,761,348 270.3% Safety Plan Schedule of Funding Progress (as of June 30,2013) Unfunded Actuarial Accrued Actuarial Value Actuarial Accrued Annual Covered UAAL as a%of Liability(AAL) of Assets Liability(UAAL) Funded Ratio Payroll Covered Payroll (a) (b) (a)—(b) (b)/(a) (c) [(a)—(b)/(c)] $195,485,049 $144,294,074 $51,190,975 73.8% $12,146,524 421.4% Source:City of Vernon 37 See Note 9 in the Annual Financial Report for the Fiscal Year ended June 30, 2014, included in APPENDIX A,for more information. OPEB.. In addition to the retirement benefits through Ca1PERS, the City provides other post-employment benefits ("OPEBs"). Beginning in Fiscal Year 2011-12, the City Council approved a single-employer post- employment benefit plan to employees who retire at age 50 or later with 20 years of continuous uninterrupted service up to the age of 65. Alternatively, employees who retire before the age of 50 with 20 years of continuous uninterrupted service will be permitted to pay their medical and dental premium cost and upon reaching the age of 50,the City will pay the premium for the medical and dental plans until they reach the age of 65. The City Council also approved of the provision of lifetime medical benefits to Police Management employees and their spouses, if such employee was employed as sworn safety personnel for minimum of 20 years and a minimum of 10 years of that service was with the City. In addition, the City Council approved a medical benefits plan to incentivize early retirement during Fiscal Year 2012-13, whereby the City authorized the payment of medical and dental insurance premiums for eligible retiring employees and their dependents with at least 10 years of service, plus 5% for each additional full year of service above the 10 years of services. The City Council also adopted a resolution that provided that retiree medical benefits which have not been a vested right for employees will continue to be non-vested for employees who continue to be employed by the City on or after July 1,2013. The City's plan is considered a substantive OPEB plan and the City recognizes costs in accordance with GASB Statement No. 45. As of June 30, 2014, 331 employees (consisting of 250 active employees and 81 retired employees)participated in the City's OPEB plan. Based on a July 1, 2012 actuarial valuation, the City's actuarial accrued liability under such plan was $44,580,541. As no prefunding has been made, the City's unfunded actuarial accrued liability under such plan is the same amount. As of June 30, 2014, based on the July 1, 2012 actuarial valuation and the assumptions therein,the annual required contribution was$3,206,158 and the net OPEB obligation was$14,033,748. For more information concerning the City's OPEB plan,see Note 11 in the Annual Financial Report for the Fiscal Year ended June 30,2014,included in APPENDIX A. Insurance The City and the Electric System are exposed to various risks of loss related to natural disasters,damage or destruction of assets, errors or omissions, injuries to employees, torts, theft and other risk factors. The City has obtained various property insurance policies that provide coverage for"Special Form Perils" against direct physical loss or damage,including flood, to all real and personal property of the City. The policy limits for perils other than flood and equipment machinery breakdown are$100 million per occurrence with deductibles of up to $100,000 per occurrence. The flood portion of the policies has a limit of$25 million per occurrence with a$100,000 deductible. The equipment and machinery breakdown portion of the policies has a limit of$50 million per occurrence. Due to increasing premiums and limitations on available coverage, the City eliminated earthquake insurance coverage and reduced flood insurance coverage. Subject to the requirements of the Indenture to maintain insurance on the Electric System, which are consistent with the insurance on comparable facilities, if premiums and limitations continue to increase, the City may eliminate or further reduce flood insurance coverage. The City has also obtained various insurance policies that provide general liability,automobile liability and employment benefits liability coverage with policy limits of$20 million per occurrence and in the annual aggregate, with a self-insured retention of$2 million. The City has a workmen's compensation insurance policy with a $50 million limit and a $1 million self-insured retention amount, and insurance coverage for certain crimes with a policy limit of$1 million and a deductible of $25,000. Deductibles and amounts in excess of policy limits are self-insured. There have been no settlements exceeding insurance coverage for each of the last five Fiscal Years. See Note 8 in the Annual Financial Report for the Fiscal Year ended June 30,2014,included in APPENDIX A. 38 Seismic Activity The City is located in a region of seismic activity.The principal earthquake fault in the Los Angeles area is the San Andreas Fault,which extends an estimated 700 miles from north of the San Francisco area to the Salton Sea. The San Andreas Fault is about 35 miles north of the Los Angeles Civic Center and approximately 39 miles north of the City. In April 2008,the Uniform California Earthquake Rupture Forecast(the"Earthquake Forecast")was issued by the Working Group on California Earthquake Probabilities. Organizations sponsoring the Working Group on California Earthquake Probabilities include the U.S. Geological Survey, the California Geological Survey and the Southern California Earthquake Center. According to the Earthquake Forecast,the probability of a magnitude 6.7 or larger earthquake over the next 25 years striking the greater Los Angeles area is 67%. For the entire California region, the fault with the highest probability of generating at least one magnitude 6.7 quake or larger is the San Andreas Fault(59% in the next 25 years). Earthquake probabilities for many parts of the State are similar to those in previous studies, but the new probabilities calculated for the Elsinore and San Jacinto Faults in southern California are about half those previously determined. For the far northwestern part of the State, a major source of earthquakes is the offshore 750-mile-long Cascadia Subduction Zone, the southern part of which extends about 150 miles into the State. For the next 25 years there is a 10%probability of a magnitude 8 to 9 quake somewhere along that zone. There are hundreds of other faults throughout Southern California that could also cause damaging earthquakes. It is impossible to accurately predict the cost or effect of a major earthquake on the Electric System or to predict the effect of such an earthquake on the Electric System's ability to provide continued uninterrupted service to its customers. The City does not carry earthquake insurance. Investment Policy and Controls The City's Investment Policy sets forth the investment guidelines for all funds of the City, including amounts in the Light and Power Fund. In accordance with California law, the City has adopted an Investment Policy for the investment of City funds which are not currently needed for disbursement. The City Council annually appoints the City Treasurer as the officer responsible for making investments of City funds and approves the City's Investment Policy. The Treasurer is authorized to delegate this authority as deemed appropriate. The Investment Policy requires that the investments be made with the prudent person standard, that is, acting with care, skill prudence, and diligence under the circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the City. For more information on the City's Investment Policy and the allocation of invested City funds as of June 30, 2014,see Note 2 in the Annual Financial Report for the Fiscal Year ended June 30,2014,included in APPENDIX A. As of June 30, 2014, the City's Gas and Electric Department had invested its funds in the investments below. I 39 CITY OF VERNON INVESTMENTS OF GAS AND ELECTRIC DEPARTMENT(1) As of June 30,2014 Investment Type Amount Deposits with Financial Institutions $ 7,969,576 Federal Home Loan Bank 2,265,085 Federal National Mortgage Association 7,345,965 Federal Home Loan Mortgage Corporation 6,104,157 Local Agency Investment Fund 540,884 Money Market Mutual Fund 72,733,547 United States Treasury Notes 30,556,908 $127,516,122 Source:City of Vernon. 0) Includes all funds (including restricted funds) attributable to the Gas and Electric Department in the Annual Financial Report for the Fiscal Year ended June 30,2014, included in APPENDIX A. The City also adopted Guidelines for Utilization of Interest Rate Swaps & Other Derivative Products (the "Swap Policy"). According to the Swap Policy,the City is to maximize the benefits and minimize the risks it carries by actively managing its interest rate swap program, including periodic monitoring of market conditions and possible early termination. A report providing the status of all interest rate swap agreements entered into by the City is to be prepared no less frequently than semi-annually (or on such other basis directed by the City Council). The City currently has two outstanding interest rate swap agreements, both of which are obligations of the Electric System and currently have negative market values. See "ELECTRIC SYSTEM OBLIGATIONS — Interest Rate Swap Transactions" herein. The City plans to use a portion of the proceeds of the 2015 Bonds, together with other available funds, to pay the termination payments with respect to such outstanding interest rate swap agreements. See"PLAN OF FINANCE herein. ELECTRIC SYSTEM FINANCIAL INFORMATION Retail Energy Sales 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 five Fiscal Years ended June 30, 2010 through 2014, 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 62.3% and small industrial customers (monthly demand of 500 KW or less)comprising approximately 36.4%of the total revenues from retail sales for the Fiscal Year ended June 30,2014. 40 CITY OF VERNON ELECTRIC SYSTEM CUSTOMERS,RETAIL SALES,REVENUES AND DEMAND Fiscal Years Ended June 30 2010 2011 2012 2013 2014 Number of Customers: Residential 28 28 28 28 28 Small Industrial 1,134 1,147 1,168 1,182 1,191 Large Industrial 632 621 600 591 573 Other 96 97 100 98 97 Total Customers(1) 1,890 1,893 1.896 1,899 Kilowatt-Hour Retail Sales(in Millions): Residential 0.2 0.2 0.2 0.2 0.2 Small Industrial 349.0 353.2 361.6 369.2 370.8 Large Industrial 774.2 773.7 778.4 757.6 749.6 Other 10.6 10.4 10.9 11.1 10.9 Total kWh Retail Sales 1.134.0 1,137.5 1,151.1 1, 338.1 1,131.5 Revenues from Retail Sale of Energy ($000's): Residential $ 12 $ 12 $ 12 $ 14 $ 15 Small Industrial 34,773 36,574 41,196 49,116 53,123 Large Industrial 68,415 70,701 77,657 86,096 90,929 Other 1,266 1,314 1,502 1,714 1,862 Total Revenues from Retail Sale of Energy P) LIM 465 108 601 120 367 136 940 145 929 Peak Retail Demand(MWs) 196.6 194.6 193.2 191.7 194.0 Source: City of Vernon,derived from audited financial statements. (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 FCABF. Summary of Operating Results A summary of historical revenue, expenses, and debt service coverage for the City's Electric System for each of the five Fiscal Years ended June 30,2010 through 2014 is shown in the following table. This summary was prepared by the City from information derived from its audited annual financial statements. 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 the generally accepted accounting principles 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. I I 41 CITY OF VERNON ELECTRIC SYSTEM HISTORICAL REVENUE,EXPENSES and DEBT SERVICE COVERAGE UNDER INDENTURE(1)(2) Fiscal Year Ended June 30 2010 2011 2012 2013 2014 Revenues: Electric Sales—Retail $104,464,945 $108,600,606 $120,465,374 $138,210,750 $146,248,549 Fuel Cost Adjustment 4,778,639 1,215,647 854,251 1,095,318 2,845,893 Transmission revenue 1,314,640 1,358,755 1,269,933 1,623,345 2,351,042 Investment Income(3) 1,410,991 1,637,826 1,065,277 820,442 799,984 Non-Recurring Income (Loss)(4) 40,000,000 0 0 4,250,000 (1,093,922) Renewable Pass-Through 0 0 0 0 5,834,477 Withdrawal from/(Deposit to) (40,000,000) 20,000,000 20,000,000 (7,068,805) 0 Stabilization Fund Other(5) 3,802,214 4,065,372 4,984,708 4,717,129 5,063,632 Total Revenues $115,771,428 $136,878,205 $148,639,543 $143,648,179 $162,049,656 Operation and Maintenance Expenses: Fuel(6) $ 4,104,122 $ (1,292,543) $ 3,163,790 $ 3,466,789 $ 4,804,348 Energy(7) 30,711,920 38,014,830 41,786,732 52,553,387 59,210,379 City Allocated Administrative Costs(s) 2,872,661 2,872,661 2,872,661 2,500,000 2,500,000 Other(9) 19,661,939 20,228,314 23,341,078 21,128,209 22,759,447 Total Operation and Maintenance $57,350,642 $ 59,823,262 $ 71,164,261 $ 79,648,384 $ 89,274,175 Expenses Net Revenues Available for Debt Service $58,420,785 $ 77,054,943 $ 77,475,282 $ 63,9999795 $ 72,775,481 Debt Service(10) a Payments for Swap Transactions 00 $ 7,567,019 $ 5,700,420 $ 5,790,199 $ 3,533,707 $ 2,760,190 2008 Bonds Debt Service 3,720,560 3,975,755 3,975,405 3,973,575 3,975,080 2009 Bonds Debt Service(12) 19,513,783 46,040,600 45,355,950 I6,674,700 46,040,638 2012 Series A Bonds Debt Service 0 0 0 0 2,031,394 2012 Series B Bonds Debt Service 0 0 0 2,296,997 2,222,900 Total Debt Service: $30,801,362 $ 55,716,775 $ 55,121,554 $ 26,4789979 $ 57,0309202 Debt Service Coverage Ratio 1.90x 1.38x 1.41x 2.42x 1.28x Net Revenues Remaining After Debt $27,619,424 $ 21,338,168 $ 22,353,728 $ 37,520,815 $ 15,745,280 Service Source:City of Vernon. 0) Totals may not add due to rounding. 1z> Excludes depreciation and amortization,and other non-cash items from Operation and Maintenance Expenses. 0) Does not include unrealized gain(loss)on investments or increase(decrease)in fair market value of investments. Investment income relating to the Authority is reflected in Fuel. 0) For the Fiscal Year ended June 30, 2010, represents proceeds from the sale of renewable wind land. For the Fiscal Year ended June 30, 2013, represents settlement with Citigroup. For the Fiscal Year ended June 30,2014,represents a legal settlement. (') Includes 2.85%AB 1890 public benefit surcharges pursuant to Section 385 of the Califomia Public Utilities Code. (b) Includes costs associated with natural gas purchased under the Supply Agreement. Represents net energy purchases and wholesale sales and capacity(including the PPTA and Hoover Contract for Differences in the Fiscal Years ended June 30,2010 through 2014). Excludes$12,000,000 and$7,000,000 paid from the proceeds of the sale of MGS during the Fiscal Years ended June 30,2010 and 2011.For the Fiscal Years ended June 30,2013 and 2014,includes costs associated with renewable energy in the form of bio-gas. (8) Represents costs incurred by the City for City services benefitting the Electric System. (9) Includes,among other things,transmission costs,grid management charges,ancillary services,FERC fees,maintenance service contracts and other Electric System administrative expenses. (10) Debt service for Parity Obligations,including net payments on interest rate swap transactions. (11) Swap transactions are planned to be terminated with certain proceeds of the 2015 Bonds and other available funds. See"PLAN OF FINANCE." 02) Certain maturities of the 2009 Bonds are expected to be refunded with certain proceeds of the 2015 Bonds. 42 Management's Discussion of Operating Results For the management's discussion of operating results, see the Annual Financial Report for the Fiscal Year ended June 30, 2014 and the Annual Financial Report for the Fiscal Year ended June 30, 2013, included in APPENDIX A. Projected Operating Results and Debt Service Coverage [Set forth below are the City's projections of the revenue,expenses and debt service coverage of its Electric System(calculated in accordance with the Indenture)for each of the Fiscal Years ending June 30,2015 through June 30, 2020. 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 Fiscal Year ending June 30, 2015,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 the generally accepted accounting principles. 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. Among the assumptions made by the City are the following:] [TO COME] While the City believes its 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 below cannot be assured. 43 CITY OF VERNON ELECTRIC SYSTEM PROJECTED REVENUE,EXPENSES and DEBT SERVICE COVERAGE UNDER INDENTURE M Fiscal Year Ending June 30, 2015 2016 2017 2018 2019 2020 Revenues: ElectricSales—Retail $148,770,526 $153,503,719 $170,829,971 $176,882,672 $184,000,235 $194,009,691 Fuel Cost Adjustment 931,739 931,739 941,056 950,466 959,971 969,571 Transmission revenue 2,245,042 2,329,247 2,399,125 2,471,099 2,545,232 2,621,588 Investment Income 800,000 15,800,000 800,000 800,000 800,000 800,000 Withdrawal from/(Deposit to) 4,100,000 0 0 0 0 0 Stabilization Fund Renewable Pass-Through 11,553,6110 13,800,085 12,148,451 12,376,089 12,609,188 12,847,899 Other(1) 5,419,109 5,507,953 5,643,997 5,813,791 6,012,918 6,269,952 Total Revenues $173,820,027 $191,872,743 $192,762,600 $199,294,116 $206,927,544 $217,518,702 Operation and Maintenance Expenses: Fuel $3,621,112 $941,013 $1,584,244 $2,246,771 $2,929,174 $3,632,050 Non-Renewable Energy 44,996,338 47,000,416 75,551,571 77,517,198 79,541,794 81,627,127 Renewable Energy 21,349,219 22,709,737 22,773,030 23,456,220 24,159,907 24,884,704 City Allocated Administrative Costs(3) 3,018,677 3,018,677 3,079,051 3,140,632 3,203,444 3,267,513 Other (4) 26,000,837 30,494,998 29,756,351 30,461,062 31,206,072 31,956,881 Total Operation and Maintenance $98,986,182 $104,164,842 $132,744,246 $136,821,883 $141,040,391 $145,368,275 Expenses Net Revenues Available for Debt Service $74 833 845 $87 707 901 $60 018 353 $62 472 233 $65 887 153 $72 150 426 Debt Service: (5) Payments for Swap Transactions $5,806,608 $0 $0 $0 $0 $0 2008 Bonds Debt Service 3,974,735 3,977,355 3,977,755 3,975,935 3,976,710 4,239,805 2009 Bonds Debt Service 46,043,956 42,404,644 21,338,194 36,207,075 35,969,309 33,400,266 2012 Series A Bonds Debt Service 2,031,394 2,031,394 2,031,394 2,031,394 2,031,394 2,031,394 2012 Series B Bonds Debt Service 2,222,900 2,222,900 2,222,900 2,222,900 2,222,900 2,222,900 2015 Bonds Debt Service 0 2,680,360 4,573,125 4,573,125 4,573,125 4,573,125 Total Debt Service $60,079,593 $53,316,653 $34,143,368 $49,010,429 $48,773,438 $46,467,490 Debt Service Coverage Ratio(6) 1.25x 1.65x 1.76x 1.27x 1.35x 1.55x Net Revenues Remaining After Debt $14,754,252 $34,391,248 $25,874,986 $13,461,804 $17,113,715 $25,682,937 Service Source:City of Vernon (1) Totals may not add due to rounding. (2) Includes 2.85%AB 1890 public benefit surcharges pursuant to Section 385 of the California Public Utilities Code. (3) Represents costs anticipated to be incurred by the City for City services benefitting the Electric System. 0) Includes,among other things,transmission costs,grid management charges,ancillary services,FERC fees,maintenance service contracts and other Electric System administrative expenses. (5) Debt service for Parity Obligations,including net payments on interest rate swap transactions. Such swap transactions are expected to be terminated with certain of the proceeds of the 2015 Bonds,together with other available funds. See"PLAN OF FINANCE." (6) Net Revenues divided by Total Debt Service. [Assumes no Bonds,other than the 2008 Bonds,the 2009 Bonds,the 2012 Bonds and the 2015 Bonds are outstanding during the projection period,and assumes the refunding of the Refunded 2009 Bonds.] (7) [to explain large increase from 2014] [subject to change] 44 Unrestricted Cash Balances The Electric System's unrestricted cash balances as of June 30 for each of the previous five Fiscal Years ended June 30, 2010 through June 30, 2014 has been no less than$16.7 million. The Electric System's unrestricted cash balances as of June 30 for such previous five Fiscal Years were as follows: CITY OF VERNON ELECTRIC SYSTEM HISTORICAL UNRESTRICTED CASH BALANCES Unrestricted Cash June 30, Balances 2010 $67,966,574 2011 50,848,937 2012 21,991,4380) 2013 19,279,266 2014 16,745,324 Decrease from prior Fiscal Year primarily reflects transfer to the City's General Fund and debt service payments. Source:City of Vernon Based on the assumptions described under'—Projected Operating Results and Debt Service Coverage,"(A) after payment of operation and maintenance expenses and debt service, as detailed above, and(B) after payment of (i) projected capital requirements (See "THE ELECTRIC SYSTEM—Capital Requirements"), and (ii) transfers to the City's General Fund, which transfers are assumed to be(and are limited to) 11.5% of retail sales, less Franchise Payments and less City allocated administrative costs included as Operation and Maintenance Expenses, the City i projects the Electric System's unrestricted cash balances as of June 30 for each of the Fiscal Years ending June 30, 2015 through June 30, 2020 will be as reflected in the following table. The amount of unrestricted cash balances will depend on a variety of factors, and there can be no assurances that such unrestricted cash balances will be available in the amounts and at the times set forth in the following table. CITY OF VERNON ELECTRIC SYSTEM PROJECTED UNRESTRICTED CASH BALANCES Unrestricted Cash June 30, Balances 2015 $27,082,087 2016 67,599,9750) 2017 52,014,147 2018 43,769,168 2019 46,869,116 2020 48,202,115 Projected increase from prior Fiscal Year primarily reflects the application of 2015 Bond proceeds and adopted rate increases. See"PLAN OF FINANCE." Source:City of Vernon [subject to change] 45 FACTORS AFFECTING THE ELECTRIC UTILITY INDUSTRY While the City generates only a small amount of electricity from its own resources, the matters described below may have a significant impact on the cost of electricity the City purchases to satisfy its customers' load requirements. 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 continuing legislative, regulatory and judicial action regarding such standards and procedures. Consequently, there is no assurance that any Electric System facility(or any facility providing the Electric System with power or energy through a power purchase contract) will remain subject to the regulations currently in effect, will always be in compliance with future regulations or will always be able to obtain all required operating permits. An inability to comply with environmental standards could result in additional capital expenditures to comply, reduced operating levels or the complete shutdown of individual electric generating units not in compliance which may adversely affect the Electric System's costs in serving customer load. There is concern by the public, the scientific community and the federal government regarding environmental damage resulting from the use of fossil fuels. Congressional support for the increased regulation of air, water and soil contaminants is building, and there are a number of pending or recently enacted legislative proposals which may affect the electric utility industry. There has also been an increase in the level of environmental enforcement by the United States Environmental Protection Agency(the"EPA") and state and local authorities. Increased environmental regulations under the provisions of the federal Clean Air Act have created certain barriers to new facility development and modification of existing facilities. The additional costs, including time,human resources,uncertainty and delay,and the risk of fines and penalties for noncompliance,could affect the rate of return relating to investment in power project development. As such, there may be additional costs for purchased power from affected resources. Moreover,these additional costs may upset existing cost assumptions for utilities. The following factors affecting the Electric System and the electric utility industry should be considered when evaluating the City and the Electric System and considering an investment in the 2015 Bonds. The City cannot predict at this time whether any additional legislation or rules will be enacted which will affect its Electric System's operations, and if such laws or rules are enacted,what the costs to the City might be in the future because of such action. See "ELECTRIC SYSTEM OBLIGATIONS," "THE ELECTRIC SYSTEM," "ELECTRIC SYSTEM FINANCIAL INFORMATION" and the Annual Financial Reports for the Fiscal Year ended June 30, 2014 and the Fiscal Year ended June 30,2013,included as APPENDIX A hereto,for additional information relating to the City and the Electric System. Changing Laws and Requirements On both the state and federal levels, legislation is introduced frequently that would have the effect of further regulating environmental impacts relating to energy, including the generation of energy using conventional and unconventional technologies. Issues raised in recent legislative proposals have included implementation of energy efficiency and renewable energy standards, addressing transmission planning, siting and cost allocation to support the construction of renewable energy facilities, cyber-security legislation that would allow FERC to issue interim measures to protect critical electric infrastructure, a federal cap-and-trade program to reduce GHG emissions, and renewable energy incentives that could provide grants and credits to municipal utilities to invest in renewable energy infrastructure. It is possible that the 114th Congress (2015-16) will pass legislation addressing similar issues. The City is unable to predict at this time whether any of these or other legislative proposals will be enacted into law and,if so,the impact they may have on the operations and finances of the Electric System or on the electric utility industry in general. In addition to state and federal legislation,citizen initiatives in the State can lead and have led to substantial restrictions upon governmental agencies, both in terms of raising revenue and management of governmental entities generally. Articles XIIIC and XIIID of the State's constitution provided limits on the ability of governmental 46 agencies to increase certain fees and charges. Such articles were adopted pursuant to measures qualified for the ballot pursuant to the State's constitutional initiative process. While Articles XIIIC and XIIID do not affect the Electric System's rates and charges, 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 Electric System to increase revenues. See also"CONSTITUTIONAL LIMITATIONS ON TAXES"herein. Impact of Developments on the City While the City generates only a small amount of electricity from its own resources, the matters described above may have a significant impact on the cost of electricity the City purchases to satisfy its customers' load requirements. The effect of these developments in the energy markets on the Electric System cannot be fully ascertained at this time. Also,volatility in energy prices in California may return due to a variety of factors which affect both the supply and demand for electric energy in the western United States. These factors include,but are not limited to, the adequacy of generation resources to meet peak demands, the availability and cost of renewable energy, the impact of GHG emission legislation and regulations, fuel costs and availability, weather effects on customer demand, transmission congestion, the strength of the economy in California and surrounding states and levels of hydroelectric generation within the region (including the Pacific Northwest). Price volatility for electric energy may contribute to greater volatility in the Electric System's Revenues from the sale(and purchase)of electric energy and, therefore, could materially affect the financial condition of the Electric System. The City relied on short-term power supply contracts and other arrangements to provide approximately 15% of the electricity required to satisfy customer load for Fiscal Year ended June 30, 2014. The City undertakes resource planning activities and plans for its resource needs in order to mitigate against such price volatility and its spot market rate exposure. See "THE ELECTRIC SYSTEM—Power Supply Resources"herein. California Climate Change Policy Developments State regulatory agencies such as the California Air Resources Board("CARB") and the CEC are pursuing a number of regulatory programs designed to reduce GHG emissions and encourage or mandate renewable energy generation. The following is a summary of certain of these programs. See also "—Environmental and Regulatory Factors"below. California Global Warming Solutions Act of 2006. On September 27, 2006, then-Governor Schwarzenegger signed into law the California Global Warming Solutions Act of 2006 (the "Global Warming Solutions Act" or"AB 32"). This law requires a cut in GHG emissions from within the State by 2020 in order to reduce such emissions back to 1990 levels, which represents a reduction of approximately 25% statewide. The Global Warming Solutions Act also delegates rulemaking authority to California state agencies, including CARB, and authorized CARB to adopt"market-based approaches,"such as cap-and-trade regulation. On October 20, 2011, CARB adopted Resolution 11-32 approving cap-and-trade regulations, which became effective on January 1,2012 (the"Cap-and-Trade Regulations"). The Cap-and-Trade Regulations impose a "cap" for cumulative GHG emissions from all of the regulated entities. The aggregate GHG emissions will intentionally be capped at levels below the levels of emissions required to sustain electricity and industrial production from sources producing GHG emissions at historical levels or at levels projected in the absence of the Cap-and-Trade Regulations. On April 29, 2015, Governor Brown issued an executive order(Executive Order B-30-15)to reduce GHG emissions to 40% below 1990 levels by 2030. According to Governor Brown, California is on track to meet or exceed the current target of reducing GHG emissions to 1990 levels by 2020, as established under the Global Warming Solutions Act. The new target is expected to make it possible to reach the ultimate goal of reducing GHG emissions to 80%below 1990 levels by 2050 previously established by Executive Order 5-3-05. With respect to the electricity sector, the cap applies to aggregate emissions from generation within the State, and to emissions associated with electricity imported into the State. CARB issues a number of allowances each year equal to the number of metric tons of GHG emissions represented by the cap for such year. The Cap-and- Trade Regulations require electric utilities, including the Electric System, major industrial sources of GHG emissions and suppliers of transportation fuels (e.g. gasoline and diesel) to obtain and submit to CARB allowances I 47 I and/or offsets with respect to GHG emissions for each compliance period. The Electric System is a covered entity, and must submit allowances for its GHG emissions relating to its State generation activities, as well as for imported electricity from dedicated out-of-state resources. In addition, the Electric System may indirectly bear compliance costs for independent generators that must purchase allowances for their generation. Some covered entities, including the Electric System, are entitled to receive administrative allocations of allowances for some of their expected GHG emissions at no cost. Other entities (particularly investor-owned utilities) receive administrative allocations of allowances and must consign their allowances and subsequently bid for allowances at auctions conducted by CARB or purchase allowances or offsets in the open market. Entities that emit GHGs at levels above those for which they receive administrative allocations, if any, must purchase the additional allowances they require at the CARB auctions or from other covered entities with surplus allowances. CARB conducts auctions under the Cap-and-Trade Regulations on a quarterly basis. The City believes that participation in the auctions would adequately supplement the City's administrative allowances to authorize the City's generation and purchase of electricity should any fixture shortfalls occur. Future prices for GHG allowances under the Cap-and-Trade Regulations cannot be predicted with certainty but are expected to rise as the cap decreases. If adequate numbers of allowances cannot be obtained at auctions or in the market, regulated entities will need to implement strategies for ensuring reliable system operations while complying with limitations on GHG emissions imposed by the Cap-and-Trade Regulations, including increasing reliance upon lower GHG emitting resources. GHG Emissions Performance Standard and Financial Commitment Limits. In September 2006, SB 1368 (Chapter 598, Statutes of 2006) was signed into law. In the case of publicly owned electric utilities ("POUs") such as the Electric System, SB 1368 required the CEC to adopt a GHG emissions performance standard ("EPS") for generating facilities. Accordingly, in August 2007, the CEC adopted regulations setting the EPS at 1,100 pounds per MWh. The EPS applies to"covered procurements" entered into by POUs. SB 1368 also prohibits publicly owned utilities from making any "long-term financial commitment" in connection with "baseload generation" that does not satisfy the EPS. Generally, a "long term financial commitment" is any new or renewed power purchase agreement with a term of five years or more, the purchase of an interest in a new power plant or any investment, other than routine maintenance, in an existing power plant that extends the life of the plant by more than five years or results in an increase in its rated capacity. `Baseload generation"means a power plant that is intended to operate at an annualized capacity factor of 60%or more. On January 12, 2012, the CEC adopted an Order Instituting Rulemaking ("OIR") in response to a petition filed by two environmental organizations,which requested a rulemaking proceeding to review whether the practices of POUs meet the requirements of SB 1368 and the EPS. The OIR focused on the following four issues: whether to (i) establish a filing requirement for all POU investments in non-EPS compliant facilities regardless of whether the investment is a "covered procurement;" (ii) establish criteria for the term "covered procurement" and/or further define the terms "designed and intended to extend the life of one or more generating units by five years or more" and"routine maintenance;" (iii) make changes to the regulations pursuant to Public Utilities Code Section 8341(f), which requires the CEC and CARB to reevaluate the EPS when an enforceable GHG emissions limit applicable to POUs is established and in operation; and(iv)make any other changes to carry out the requirements of SB 1368. On March 19, 2014, the CEC issued its Final Conclusions with respect to the EPS proceeding. The CEC proposed to expand the public notice requirements so that a POU would have to post a notice of a public meeting at which its governing board would consider any expenditure over $2.5 million to meet environmental regulatory requirements at a non-EPS compliant baseload facility. The CEC also proposed to require each POU to file an annual notice identifying all investments over $2.5 million that it anticipates making during the subsequent 12 months on non-EPS compliant baseload facilities to comply with environmental regulatory requirements. This requirement would be waived for any POU that has entered into a binding agreement to divest within five years of all baseload facilities exceeding the EPS. The CEC did not propose the lower the EPS. A final regulatory package was unanimously adopted at the CEC's June 18, 2014 business meeting. The adopted regulations had limited changes to the proposed POU reporting requirements. CEC staff has also since confirmed that the $2.5 million 48 threshold applies to an individual investment by each utility—not the combined investment of all participants in a project. California Renewable Electric Standard. On April 12, 2011, Governor Brown signed into law the California Renewable Energy Resources Act, or SBX 1-2. The law directs the governing board of each local POU, such as the Electric System, to develop and implement a renewable energy resources procurement plan and an enforcement program to ensure that SBX 1-2 objectives are met, and SBX 1-2 codified the Renewable Portfolio Standard ("RPS") target for retail electricity sellers to serve 33% of their loads with eligible renewable energy resources by 2020 as provided in an executive order signed by Governor Brown in 2008. SBX 1-2 establishes procurement targets for three compliance periods to be implemented by the procurement plan. The first compliance period was from January 1, 2011 to December 31,2013,during which an average of 20% of the utility's retail sales were required to be procured from eligible renewable energy resources. During the second compliance period,from January 1, 2014 to December 31, 2016, the utility must make reasonable progress each year to ensure it achieves 25% of retail sales from eligible renewable energy resources by December 31, 2016. During the third compliance period, from January 1, 2017 to December 31, 2020, with the adoption of the regulations to enforce SBX 1-2 identified below,the CEC is requiring the Electric System to procure eligible renewable energy resources with 27% of its 2017 retail sales,29%of its 2018 retail sales,31%of its 2019 retail sales,and 33%of its 2020 retail sales. SBX 1-2 establishes enforcement authority over local publicly owned utilities, such as the Electric System, and establishes penalties for noncompliance. SBX 1-2 directs the CEC to design and implement an accounting system to verify compliance with its standards, establish a system to track and verify renewable energy credits, and to certify the eligibility of renewable energy credits. SBX 1-2 also establishes criteria for renewable energy credits. For example, renewable energy credits cannot be created for electricity generated pursuant to any electricity purchase contract with a retail seller or a local POU executed before January 1, 2005, unless the contract contains explicit terms and conditions specifying the ownership or disposition of those credits. SBX 1-2 also addresses the issue of the extent to which a renewable energy facility must be located in the State or deliver power to the State and how those factors affect the creation and use of renewable energy credits associated with energy generated at a particular facility. SBX 1-2 establishes requirements on this issue that differ from the CPUC approach discussed above and the City is analyzing the impact of the new requirements on the Electric System In September 2012, Governor Brown signed into law AB 2196,which sets forth certain conditions related j to the use of landfill gas,digester gas or other renewable fuels,and AB 1900,which establishes a system to begin to allow for the landfill gas pipeline injection within the State. The legislation grandfathered most existing contracts, including the City's bio-gas contracts (cross reference THE ELECTRIC SYSTEM — Current Renewable Energy Resources—Contracts for Bio Gas),and also limited new out of state bio-gas resources. The CEC adopted regulations to enforce SBX 1-2 on POUs that became effective in October 2013. Further, the CEC has revised its existing RPS Eligibility Guidebooks to incorporate the changes implemented by SBX 1-2,AB 2196 and AB 1900. These revisions are reflected in the GEC's revised Renewables Portfolio Standard Eligibility Guidebook,7th Edition,which was released in November 2013. See "THE ELECTRIC SYSTEM — Power Supply Resources — Renewable Energy Resources" for a description of the City's existing renewable energy sources and the City's plan for additional renewable energy sources to satisfy SBX 1-2. Renewable Energy Policy Development. Executive Order S-21-09 provides that CARB may delegate + policy development and implementation to the CEC and the CPUC, that CARB is to consult with the CAISO and other balancing authorities on impacts on reliability, renewable integration requirements and interactions with wholesale power markets in carrying out the provisions of Executive Order S-21-09, and that CARB is to establish the highest priority for those resources with the least environmental costs and impacts on public health that can be developed most quickly and that support reliable, efficient and cost-effective electricity system operations including resources and facilities located throughout the western states. SB 1389 (Bowen,Chapter 568,Statutes of 2002)requires that the CEC prepare a biennial integrated energy policy report that contains an integrated assessment of major energy trends and related issues facing California and 49 provide policy recommendations to conserve resources,protect the environment,ensure reliable, secure and diverse energy supplies,enhance the State's economy and protect public health and safety. In February 2015, the CEC adopted the "Final 2014 Integrated Energy Policy Report Update" (the"2014 IEPR Update"). As part of the CEC's renewable strategic plan, the 2014 IEPR Update proposes recommendations for policies on energy and environmental matters. Among those policy recommendations,the following may have a material effect on the Electric System: (i)continue efforts to implement the RPS of 33%;and(ii)continue to support the development and implementation of an energy efficiency program in existing buildings. Introduced Climate Change Bills. On January 5, 2015, Governor Brown proposed three major climate change goals to be completed within the next 15 years: (a)increase from 33%to 50%California's electricity derived from renewables, (b) reduce current petroleum use in cars and trucks by up to 50%, and (c) increase by 50% the efficiency of existing buildings that make heating fuels cleaner. Recently, a number of bills were introduced in the State Legislature that, if adopted,would, among other things, implement the climate goals announced by Governor Brown. As expected,the proposed bills would increase the State's RPS from 33%to 50%(SB 350 and AB 645)and would require CARB to approve a statewide GHG emission limit to be achieved by 2050 that is equivalent to 80% below the 1990 level, as contemplated by Executive Order S-3-05 (see"—California Global Warming Solutions Act of 2006" above), and would authorize CARB to adopt interim GHG emission level targets to be achieved by 2030 and 2040 (SB 32). A bill(AB 21)has also been introduced that would require a statewide GHG emissions limit for 2080 to be established by 2018. Another bill (SB 180) would require State agencies to update the EPS and expand application to secondary generation sources. Environmental and Regulatory Factors General. Numerous environmental laws and regulations affect the Electric System's facilities and operations. The City monitors its compliance with laws and regulations and reviews its remediation obligations on an ongoing basis. The following topics highlight some of the major environmental compliance issues affecting the Electric System: Air Quality—Nitrogen Oxide (NOx)Emissions. The MGS facilities are subject to the Regional Clean Air Incentives Market ("RECLAIM") NOx regulations adopted by the South Coast Air Quality Management District ("SCAQMD"). In accordance with these regulations, SCAQMD established annual NOx allocations for stationary source facilities based on historical emissions. These allocations are in the form of RECLAIM trading credits ("RTCs"). Facilities that exceed their allocated RTCs must reconcile those emissions by purchasing RTCs from the RECLAIM market. Bicent has a program of installing emission controls at the MGS and purchasing RTCs, as necessary,to meet the emission requirements with respect to the MGS. fAs a result of the installation of NOx control equipment and the repowering of existing units, the Electric System has sufficient RTCs to meet its native load requirements for normal operations under the current NOx RECLAIM regulation.] SCAQMD is proposing to amend its NOx RECLAIM regulation such that the universe of NOx allocations would be reduced by approximately 49%. SCAQMD has not determined if the reductions would be determined by facility or otherwise (e.g. by sector). It is not yet known what the impacts will be to the Electric System. See also "—Air Quality—Federal Actions on Greenhouse Gases" and"—Air Quality—National Ambient Air Quality Standards"below. j Air Quality — State Actions on Greenhouse Gas Emissions. See "— California Climate Change Policy Developments"above. Air Quality—Federal Actions on Greenhouse Gases. Regulatory Actions Under the Clean Air Act. The EPA has taken steps to regulate GHG emissions under existing law. On April 2,2007,the U.S. Supreme Court issued a decision in Massachusetts v. EPA holding that the EPA has the authority to regulate GHG emissions under the federal Clean Air Act. Air pollutants, including GHGs, which are regulated by actually controlling emissions under any Clean Air Act program must be taken into account when considering permits issued under other programs, such as the Prevention of Significant Deterioration("PSD") 50 Permit Program or the Title V Permit Program. A PSD permit is required before commencement of construction of new major stationary sources or major modifications of such sources and contains requirements including but not limited to the application of best available control technologies ("BACT"). Title V permits must be applied for within one year a source becomes subject to the program. 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. On May 13, 2010, the EPA issued a final rule for determining the applicability of the PSD and Title V programs to GHG emissions from major stationary sources. The rule, known as the "Tailoring Rule," establishes criteria for identifying facilities required to obtain PSD permits and the emissions thresholds at which permitting and other regulatory requirements apply. The applicability threshold levels established by this rule include both a mass- based calculation and a metric known as the carbon dioxide equivalent, or CO2e, which incorporates the global warming potential for each of the six individual gases that comprise the collective GHG defined by EPA. The Tailoring Rule requires sources subject to PSD and/or Title V permits to address GHG emissions in new permit applications or renewals. Construction or modification of major sources will become subject to PSD requirements for their GHG emissions if the construction or modification results in a net increase in the overall mass of GHG emissions exceeding a certain amount of tons per year("tpy") on a CO2e basis. New and modified major sources required to obtain a PSD permit would be required to conduct a BACT review for their GHG emissions. On November 10, 2010, the EPA issued guidance on the technologies or operations that would constitute BACT for GHGs. The Electric System will need to comply with these requirements when it repowers its aging power plants. With respect to Title V requirements under the first step of the Tailoring Rule, effective January 2, 2011, sources required to have Title V permits for non-GHG pollutants were required to address GHGs as part of their Title V permitting. The second step of the Tailoring Rule became effective July 1, 2011, and is applicable to new j facilities or modifications to existing facilities that exceed certain GHG emission thresholds, even if the facility is not subject to PSD for non-GHG emissions. The second phase requirements would apply to any new,major sources the City constructs, as well as to any major modifications of existing facilities, depending on their levels of emissions of both GHG and non-GHG pollutants. I On July 12,2012,the EPA's final rule for the third step in the Tailoring Rule was published. The final rule maintains the applicability thresholds for GHG-emitting sources at the current levels and includes two permitting streamlining approaches to improve the administration of the PSD and Title V permitting programs. The Electric System has existing Title V operating permits. Existing Title V operating permits will be required to be amended to I incorporate any federal GHG applicable regulatory requirements (e.g. GHG BACT requirements) and associated monitoring,recordkeeping and reporting requirements when they are renewed. On June 23,2014, the United States Supreme Court ruled on certain challenges to the Tailoring Rule in the case of Utility Air Regulatory Group v. Environmental Protection Agency, Case No. 12-1146. In the case,the Court held that (a) aspects of the Tailoring Rule involving certain thresholds triggering regulation are invalid and (b) regulation under the Clean Air Act based solely on GHG emissions is invalid. The Court approved regulation of GHG emissions under PSD permits and Title V for facilities constituting major sources for other pollutants under j the Clean Air Act,including most electric generating facilities. I In addition to the PSD permit program, EPA is also in the process of developing a GHG regulatory program under the New Source Performance Standards ("NSPS") provisions of the Clean Air Act. On December 23, 2010, the EPA entered a settlement agreement and agreed to issue NSPS and emissions guidelines for GHG emissions from new and modified fossil fuel fired electric generating units ("EGUs"). On April 13, 2012, the EPA published in the Federal Register its proposed rule for GHG NSPS for new EGUs. The EPA released the re-proposed standards on September 20,2013 and proposes to set an emissions limit of 1,100 pounds of CO2 per MWh of electricity generated by new coal-fired EGUs, and an emission limit of either 1,000 or 1,100 lb/MWh (depending on size) for new natural gas-fired EGUs. Written comments related to the re- 51 proposed standards were due to the EPA in May 2014 and it is expected that the EPA will finalize the rule in summer 2015. The City cannot predict the outcome of this EPA rulemaking. On June 18,2014,the Federal Register noticed the EPA's proposal to regulate CO2 emissions from existing power plants. The rule proposes enforceable state-by-state CO2 performance goals, expressed in pounds of CO2 per MWh. The State performance goals are based on a system-wide approach that includes improvements in heat rate at coal-fired generating units, increased utilization of natural gas combined cycle units in place of operating coal generating units, expanded renewable energy development and additional energy efficiency programs. The EPA expects its proposed rule to achieve a 30%nationwide reduction in power plant CO2 emissions (from 2005 levels) by 2030. It is expected that the EPA will finalize the rule in summer 2015.The City cannot predict how the final rule will impact the Electric System operations at this time. Air Quality — Mercury. The Clean Air Act provides for a comprehensive program for the control of hazardous air pollutants, including mercury. On February 16, 2012, EPA published the final rule to reduce emissions of toxic air pollutants from fossil-fuel-fired EGUs and to revise the NSPS for fossil-fuel-fired EGUs.The final rule, known as the Mercury and Air Toxics ("MATS") rule, requires coal-fired electric generation plants to achieve high removal rates of mercury, acid gases and other metals from air emissions. To achieve these standards, coal units with no pollution control equipment installed (uncontrolled coal units) will have to make capital investments and incur higher operating expenses. Coal units with existing controls that do not meet the required standards may need to upgrade existing controls or add new controls to comply. The MATS rule requires generating stations to comply with the new standards three years after the rule takes effect, with specific guidelines for an additional one or two years in limited cases. The rule took effect on April 16, 2012. On June 25, 2013, the EPA reopened the public comment period to solicit additional input on startup and shutdown provisions and notice of final action on those provisions was published in the Federal Register on November 19,2014. On November 26, 2014, the U.S. Supreme Court agreed to hear a case challenging the MATS Rule on the question of whether the EPA unreasonably refused to consider costs in determining whether it is appropriate to regulate air toxins emitted by electric utilities. The U.S. Supreme Court heard oral arguments on March 25, 2015 and their ruling is expected by June 2015. Air Quality—National 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 for one or more air pollutants (known as "non-attainment areas") and develop regulatory measures in its state implementation plan to reduce or control the emissions of the air pollutants exceeding the applicable limits in order to meet the EPA NAAQS. When an area is designated as a non-attainment area for a pollutant, stricter restrictions on the emissions of the air pollutants exceeding the applicable standards are imposed, and it can be more difficult and costly to obtain permits for new major sources or major modifications to existing sources. The SCAQMD periodically prepares an overall plan, also known as an Air Quality Management Plan ("AQMP"), which include control measures to meet federal air quality standards and/or incorporate the latest technical planning information. SCAQMD is in the process of developing its AQMP for 2016,which is a regional and multi-agency effort. Superfund. The federal Comprehensive Environmental Response,Compensation and Liability Act of 1980, as amended,as well as State statutes, impose strict liability for cleanup costs upon those who generate or dispose of hazardous substances and hazardous wastes. The City's past disposal practices with its Electric System may result i in Superfund liability as previously approved disposal methods or sites become candidates for Superfund classification. In addition, under these statutes,the City may be held liable for cleanup activities on property that it i 52 I owns and operates, even if the conditions requiring cleanup existed before the City's occupancy of a site. As a result, the City may incur substantial, but presently unknown, costs as a participant in the cleanup of sites contaminated with hazardous substances or wastes. Electric and Magnetic Fields. A number of studies have been conducted regarding the potential long-term health effects resulting from 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. For additional information regarding environmental matters pertaining to the City and its Electric System, see"THE ELECTRIC SYSTEM—Power Supply Resources." Energy Regulatory Factors Developments in the California Energy Market In the late 1990s, California restructured its electricity market so that regulated retail suppliers were required to purchase their customers' supply needs through a centralized, wholesale market. In the centralized market, an administrator collected sellers' price bids and purchasers' estimates of demand. The administrator then determined the price for the most costly unit that was needed to meet demand, and all transactions occurred at that price. The wholesale market was structured as a"spot" market in which prices were set and purchases were made on a short-term basis shortly before supply was needed. California also capped the price at which regulated retail suppliers could sell electricity to their customers. During portions of 2000 and 2001, wholesale market prices in California became highly volatile and, for sustained periods, significantly exceeded the capped retail prices. Demand did not decline in response to high wholesale prices because retail price were capped. This situation resulted in the deterioration of the creditworthiness of two large, retail suppliers, Pacific Gas & Electric Company ("PG&E") and Edison, and PG&E eventually declared bankruptcy. Certain other marketers, power suppliers and power plant developers experienced downgrades of their credit ratings. PG&E emerged from bankruptcy on April 12, 2004. The credit ratings of PG&E and Edison have improved since the dislocations of the California energy markets in 2000 and 2001. The volatility in wholesale prices that California experienced in 2000 and 2001 was due to a number of factors,including flaws in the structure of the wholesale market and unlawful manipulation of the wholesale market. As discussed below, the wholesale market in California has since been redesigned, and Congress has established mechanics for policing wholesale markets. Volatility in electricity prices in California may nevertheless return due to a variety of factors that affect the supply and demand for electric energy in the western United States. These factors include,but are not limited to,the adequacy of generation resources to meet peak demands,the availability and cost of renewable energy,the impact of GHG emission legislation and regulations, fuel costs and availability, weather effects on customer demand, transmission congestion,the strength of the economy in California and surrounding states and levels of hydroelectric generation within the region (including the Pacific Northwest). Volatility in electricity prices may contribute to greater volatility in the Electric System's Light and Power Fund from the sale(and purchase) of electric energy and, therefore, could materially affect the financial condition of the Electric System. To mitigate price volatility and the City's exposure on the spot market,the City undertakes resource planning activities and plans for its resource needs. Of particular note, the City has power supply contracts and other arrangements relating to its system supply of power that are of specified durations. See"THE ELECTRIC SYSTEM—Power Supply Resources." Future Regulation of the Electric Utility Industry The electric utility industry is highly regulated and is also regularly subject to reform. The most recent reforms and proposals are aimed at reducing emissions of GHG from combustion of fossil fuels and reducing impacts from using ocean water for power plant cooling. The City is unable to predict future reforms to the electric I i 53 utility industry or the impact on the Electric System of recent reforms and proposals. In particular, the City is unable to predict the outcome of proposals on GHG and the associated impact on the operations and finances of the Electric System or the electric utility industry. Energy Policy Act of 1992 The Energy Policy Act of 1992 ("EPAct 1992") made fundamental changes in federal regulation of the electric utility industry, particularly in the area of transmission access under sections 211, 212 and 213 of the Federal Power Act, 16 U.S.C. § 791a et seq. The purpose of these changes, in part, was to bring about increased competition among wholesale suppliers. As amended, sections 211, 212 and 213 authorize FERC to compel a transmission provider to provide transmission service upon application by an electricity supplier. FERC's authority includes the authority to compel the enlargement of transmission capacity as necessary to provide the service. The service must be provided at rates, charges, terms and conditions that are set by FERC. Electric utilities that are owned by municipalities or other public agencies are "transmitting utilities" that may be subject to an order under sections 211, 212 and 213. EPAct 1992 prohibits FERC from requiring "retail wheeling" under which a retail customer that was located in one utility's service area could obtain electricity from another source. The City has disposed of all of its transmission resources but an order by FERC to another party to provide transmission might adversely affect the costs of the Electric System in having purchased power delivered to the City. Energy Policy Act of 2005 The Energy Policy Act of 2005 ("EPAct 2005") addresses a wide array of matters that could affect the entire electric utility industry,including the Electric System. EPAct 2005 authorizes FERC to compel"open access" to the transmission systems of certain utilities that are not generally regulated by FERC, including publicly owned utilities if the utility sells more than four million megawatt hours of electricity per year. This category currently does not include the Electric System. Under open access, a transmission provider must allow all customers to use the system under standardized rates, terms and conditions of service (there is no need for a customer to apply to FERC as under the EPAct 1992). FERC may compel open access in this context unless the order would violate a private activity bond rule for purposes of section 141 of the Internal Revenue Code. To date,FERC has not established generic rules that would require unregulated utilities to provide open access. Rather, FERC has chosen to take a case-by-case approach. Under EPAct 2005, FERC may not require publicly owned utilities such as the Electric System to join regional transmission organizations ("RTOs"), 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 regional processes for transmission planning and that FERC will pursue associated complaints against such utilities on a case-by-case basis. All electricity purchased from services outside the City are delivered to the City through the transmission system administered by CAISO. See "THE ELECTRIC SYSTEM — City Plan to Optimize Resource Utilization." EPAct 2005 also provides for criminal penalties for manipulative energy trading practices. EPAct 2005 repealed the Public Utility Holding Company Act of 1935, which prohibited certain mergers and consolidations involving electric utilities. EPAct 2005 gives FERC and state regulators access to books and records within holding companies that include regulated public utilities. In addition, FERC may oversee inter- affiliate transactions within such holding company systems. These provisions of EPAct 2005 are referred to as "PUHCA 2005." PUHCA 2005 does not apply to the Electric System. EPAct 2005 requires the creation of national and regional electric reliability organizations to establish and enforce, under FERC's supervision, mandatory standards for the reliable operation of the bulk power system. The standards are designed to increase system reliability and to minimize blackouts. FERC has designated the North American Electric Reliability Corporation ("NERC") as the national electric reliability organization. FERC has designated the Western Electricity Coordinating Council ("WECC") as the regional reliability organization for utilities in the West,including the Electric System. Failure to comply with NERC and WECC standards exposes a utility such as the Electric System to significant fines and penalties. NERC and WECC may audit the Electric 54 System's compliance with the reliability standards and, as indicated above, impose fines and penalties on the City for non-compliance. [to confirm City/Electric System has not been subject of such audit] Under EPAct 2005, California investor-owned utilities were required to offer, to each of their classes of customers, a time-based rate schedule that would enable customers to manage their energy use through advanced metering and communications technology. EPAct 2005 authorizes FERC to compel the siting of certain transmission lines if FERC determines that a state has unreasonably withheld approval. EPAct 2005 promotes increased imports of liquefied natural gas and includes incentives to support the development of renewable energy technologies. EPAct 2005 also extends for 20 years the Price-Anderson Act, which provides certain protection from liability for nuclear power issues and provides incentives for the construction of new nuclear plants. The City is unable to determine at this time the full long-term impact that EPAct 2005 will have on the operations and finances of the Electric System or on the electric utility industry in general. Other General 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, including the Electric System, and the level of utilization of generating and transmission facilities. In addition to the factors discussed elsewhere herein,such factors include,among others: • Effects of compliance with rapidly changing environmental, safety, licensing, regulatory and legislative requirements; • Changes resulting from conservation and demand-side management programs on the timing and use of electric energy; • Effects on the integration and reliability of the power supply from the increased usage of renewables; • Changes resulting from a national energy policy; • Effects of competition from other electric utilities (including increased competition resulting from mergers, acquisitions and strategic alliances of competing electric and natural gas utilities and from competitive transmitting of less expensive electricity from much greater distances over an interconnected system) and new methods of, and new facilities for,producing low-cost electricity; • The repeal of certain federal statutes that would have the effect of increasing the competitiveness of many investor-owned utilities; • Increased competition from independent power producers and marketers, brokers and federal power marketing agencies; • "Self-generation" or"distributed generation" (such as microturbines, fuel cells and solar installations)by industrial and commercial customers and others; • Issues relating to the ability to issue tax-exempt obligations, including restrictions on the ability to sell to nongovernmental entities electricity from generation projects and transmission line service from transmission projects financed with outstanding tax- exempt obligations; 55 • Effects of inflation on the operating and maintenance costs of an electric utility and its facilities; • Changes from projected future load requirements; • Increases in costs and uncertain availability of capital; • Shifts in the availability and relative costs of different fuels (including the cost of natural gas); • Changes in the electric market structure for neighboring electric grids such as the new energy imbalance market operated by the Cal ISO; • Sudden and dramatic increases in the 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 California; • Inadequate risk management procedures and practices with respect to, among other things,the purchase and sale of energy and transmission capacity; • Other legislative changes,voter initiatives,referenda and statewide propositions; • Effects of changes in the economy, population and demand of customers in the Electric System's service area; • Effects of possible manipulation of the electric markets;and • Natural disasters or other physical calamities, including but not limited to, earthquakes. See"THE ELECTRIC SYSTEM—Seismic Activity"herein. Any of these factors(as well as other factors)could have an adverse effect on the financial condition of any given electric utility,including the Electric System,and likely will affect individual utilities in different ways. CONSTITUTIONAL LIMITATIONS ON TAXES 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 of California on November 5, 1996. Proposition 218 added Articles XIIIC("Article XIIIC")and i XIIID ("Article 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. Article XIIID creates additional requirements for the imposition by most local governments (including the City) of assessments and property-related fees. Property-related fees include many utility charges such as water rates but Article XIIID explicitly exempts fees for the provision of electric service from the provisions of such article. Nevertheless, Proposition 218 could indirectly affect some California municipally-owned electric i utilities. For example, to the extent 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 its General Fund, see "SECURITY AND SOURCES OF PAYMENT — Transfers to General Fund" and 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 California Supreme Court held in Bighorn-Desert View Water Agency v. Verjil,39 Cal Ath 205 (2006), that the initiative power described in Article XIIIC may apply to a broader category of fees and charges than the I I 56 I 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 provision 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 2015 Bonds by virtue of the "impairment of contracts clause"of the United States and California Constitutions. Proposition 26 was approved by the voters of the State on November 2, 2010. Proposition 26 amended Articles XIIIA and XIIIC of the California 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,is 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 is not intended to and would not apply to Electric System rates so long as such rates do not 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 electrical 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 of Redding to provide electric services. On April 29, 2015, the California Supreme Court granted review of the decision of the Court of Appeal and; as a result, the decision of the Court of Appeal in Citizens for Fair Reu Rates v. City of Redding is no longer considered published and may not be cited or relied on as precedent in the courts of the State. [The City annual transfers certain amounts from the Light and Power Fund to the City's general fund(see "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 set forth in the Indenture. In the event transfers are further restricted, such further restriction would not have a material adverse effect on the financial position of the Electric System.] Future Initiatives Articles XIIIC and XIIID provided limits on the ability of governmental agencies to increase certain fees and charges. Such articles were adopted pursuant to measures qualified for the ballot pursuant to California's constitutional initiative process. While the City believes 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 California voters. The adoption of any such initiatives might place limitations on the ability of the City and its Electric System to increase revenues. LITIGATION There is no controversy or litigation of any nature now pending or threatened restraining or enjoining the issuance of the 2015 Bonds or in any way contesting or affecting the validity of the 2015 Bonds or any proceedings of the City taken with respect to the issuance or sale thereof. In addition, there is no litigation pending against the City which,in the opinion of the City, would materially adversely affect the operations or financial condition of the Electric System or the sources of payment for the 2015 Bonds. A number of lawsuits and claims have been filed and are pending against the City that arise in the normal course of operations. None of these lawsuits are expected to materially adversely affect the operations or financial condition of the Electric System or the sources of payment for the 2015 Bonds. j I 57 TAX MATTERS The following discussion summarizes certain U.S. federal tax considerations generally applicable to holders of the 2015 Bonds that acquire their 2015 Bonds in the initial offering. The discussion below is based upon laws,regulations,rulings,and decisions in effect and available on the date hereof,all of which are subject to change, possibly with retroactive effect. Prospective investors should note that no rulings have been or are expected to be sought from the IRS with respect to any of the U.S, federal tax consequences discussed below,and no assurance can be given that the IRS will not take contrary positions. Further, the following discussion does not deal with U.S. tax consequences applicable to any given investor, nor does it address the U.S. tax considerations applicable to all categories of investors, some of which may be subject to special taxing rules (regardless of whether or not such investors constitute U.S. Holders), such as certain U.S. expatriates, banks, R1 ITs,RICs, insurance companies, tax- exempt organizations, dealers or traders in securities or currencies, partnerships, S corporations, estates and trusts, investors that hold their 2015 Bonds as part of a hedge, straddle or an integrated or conversion transaction, or investors whose "functional currency" is not the U.S. dollar. Furthermore, it does not address (i) alternative minimum tax consequences, (ii) the net investment income tax imposed under Section 1411 of the Code,or(iii)the indirect effects on persons who hold equity interests in a holder. This summary also does not consider the taxation of the 2015 Bonds under state,local or non-U.S. tax laws. In addition,this summary generally is limited to U.S.tax considerations applicable to investors that acquire their 2015 Bonds pursuant to this offering for the issue price that is applicable to such 2015 Bonds (i.e., the price at which a substantial amount of the 2015 Bonds are sold to the public)and who will hold their 2015 Bonds as"capital assets"within the meaning of Section 1221 of the Code. As used herein, "U.S. Holder" means a beneficial owner of a 2015 Bond that for U.S. federal income tax purposes is an individual citizen or resident of the United States, a corporation or other entity taxable as a corporation created or organized in or under the laws of the United States or any state thereof(including the District of Columbia), an estate the income of which is subject to U.S. federal income taxation regardless of its source or a trust where a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States persons (as defined in the Code) have the authority to control all substantial decisions of the trust (or a trust that has made a valid election under U.S. Treasury Regulations to be treated as a domestic trust). As used herein,"Non-U.S. Holder" generally means a beneficial owner of a 2015 Bond(other than a partnership)that is not a U.S. Holder. If a partnership holds 2015 Bonds,the tax treatment of such partnership or a partner in such partnership generally will depend upon the status of the partner and upon the activities of the partnership. Partnerships holding 2015 Bonds, and partners in such partnerships, should consult their own tax advisors regarding the tax consequences of an investment in the 2015 Bonds (including their status as U.S. Holders or Non-U.S.Holders). Prospective investors should consult their own tax advisors in determining the U.S. federal, state, local or non-U.S. tax consequences to them from the purchase,ownership and disposition of the 2015 Bonds in light of their particular circumstances. For a description of certain California personal income tax matters,see the information set forth on the cover page of this Official Statement. U.S.Holders Interest. Interest on the 2015 Bonds generally will be taxable to a U.S. Holder as ordinary interest income at the time such amounts are accrued or received, in accordance with the U.S. Holder's method of accounting for U.S.federal income tax purposes. To the extent that the issue price of any maturity of the 2015 Bonds is less than the amount to be paid at maturity of such 2015 Bonds (excluding amounts stated to be interest and payable at least annually over the term of such 2015 Bonds), the difference may constitute original issue discount("OID"). U.S. Holders of 2015 Bonds will be required to include OID in income for U.S. federal income tax purposes as it accrues, in accordance with a constant yield method based on a compounding of interest (which may be before the receipt of cash payments attributable to such income). Under this method, U.S. Holders generally will be required to include in income increasingly greater amounts of OID in successive accrual periods. 2015 Bonds purchased for an amount in excess of the principal amount payable at maturity (or, in some cases, at their earlier call date) will be treated as issued at a premium. A U.S. Holder of a 2015 Bond issued at a 58 premium may make an election, applicable to all debt securities purchased at a premium by such U.S. Holder, to amortize such premium,using a constant yield method over the term of such 2015 Bond. Sale or Other Taxable Disposition of the 2015 Bonds. Unless a non-recognition provision of the Code applies,the sale,exchange,redemption,retirement(including pursuant to an offer by the City or other disposition of a 2015 Bond will be a taxable event for U.S. federal income tax purposes. In such event, in general, a U.S.Holder of a 2015 Bond will recognize gain or loss equal to the difference between (i) the amount of cash plus the fair market value of property received(except to the extent attributable to accrued but unpaid interest on the 2015 Bond, which will be taxed in the manner described above)and(ii)the U.S.Holder's adjusted U.S. federal income tax basis in the 2015 Bond (generally, the purchase price paid by the U.S. Holder for the 2015 Bond, decreased by any amortized premium, and increased by the amount of any OID previously included in income by such U.S. Holder with respect to such 2015 Bond). Any such gain or loss generally will be capital gain or loss. In the case of a non- corporate U.S. Holder of a 2015 Bond, the maximum marginal U.S. federal income tax rate applicable to any such gain will be lower than the maximum marginal U.S. federal income tax rate applicable to ordinary income if such U.S. holder's holding period for the 2015 Bond exceeds one year. The deductibility of capital losses is subject to limitations. Information Reporting and Backup Withholding. Payments on the 2015 Bonds generally will be subject to U.S. information reporting and possibly to "backup withholding." Under Section 3406 of the Code and applicable U.S. Treasury Regulations issued there under, a non-corporate U.S. Holder of a 2015 Bond may be subject to backup withholding at the current rate of 28%with respect to"reportable payments,"which include interest paid on such 2015 Bond and the gross proceeds of a sale,exchange,redemption,retirement or other disposition of such 2015 Bond. The payor will be required to deduct and withhold the prescribed amounts if(i) the payee fails to furnish a U.S. taxpayer identification number("TIN") to the payor in the manner required, (ii) the IRS notifies the payor that the TIN furnished by the payee is incorrect, (iii) there has been a "notified payee underreporting" described in Section 3406(c)of the Code or(iv) the payee fails to certify under penalty of perjury that the payee is not subject to withholding under Section 3406(a)(1)(C) of the Code. Amounts withheld under the backup withholding rules may be refunded or credited against the U.S. Holder's federal income tax liability, if any, provided that the required information is timely furnished to the IRS. Certain U.S. holders (including among others, corporations and certain tax-exempt organizations) are not subject to backup withholding. A holder's failure to comply with the backup withholding rules may result in the imposition of penalties by the IRS. Non-U.S.Holders Interest. Subject to the discussions below under the headings "Information Reporting and Backup Withholding" and"FATCA,"payments of principal of, and interest on, any 2015 Bond to a Non-U.S. Holder,other than (1) a controlled foreign corporation, as such term is defined in the Code, which is related to the City through stock ownership and (2) a bank which acquires such 2015 Bond in consideration of an extension of credit made pursuant to a loan agreement entered into in the ordinary course of business, will not be subject to any U.S. federal withholding tax provided that the beneficial owner of such 2015 Bond provides a certification completed in compliance with applicable statutory and regulatory requirements, which requirements are discussed below under the heading"Information Reporting and Backup Withholding,"or an exemption is otherwise established. Disposition of the 2015 Bonds. Subject to the discussions below under the headings"Information Reporting and Backup Withholding" and "FATCA," any gain realized by a Non-U.S. Holder upon the sale, exchange, redemption, retirement (including pursuant to an offer by the City) or other disposition of a 2015 Bond generally will not be subject to U.S. federal income tax,unless(i) such gain is effectively connected with the conduct by such Non-U.S. Holder of a trade or business within the United States; or (ii) in the case of any gain realized by an individual Non-U.S. Holder, such holder is present in the United States for 183 days or more in the taxable year of such sale, exchange, redemption, retirement (including pursuant to an offer by the City) or other disposition and certain other conditions are met. U.S.Federal Estate Tax.A 2015 Bond that is held by an individual who at the time of death is not a citizen or resident of the United States will not be subject to U.S. federal estate tax as a result of such individual's death, provided that, at the time of such individual's death,payments of interest with respect to such 2015 Bond would not have been effectively connected with the conduct by such individual of a trade or business within the United States. 59 Information Reporting and Backup Withholding. Subject to the discussion below under the heading "FATCA," under current U.S. Treasury Regulations, payments of principal and interest on any 2015 Bond to a holder that is not a United States person will not be subject to any backup withholding tax requirements if the beneficial owner of such 2015 Bond or a financial institution holding such 2015 Bond on behalf of the beneficial owner in the ordinary course of its trade or business provides an appropriate certification to the payor and the payor does not have actual knowledge that the certification is false. If a beneficial owner provides the certification, the certification must give the name and address of such owner, state that such owner is not a United States person, or, in the case of an individual, that such owner is neither a citizen nor a resident of the United States, and the owner must sign the certificate under penalties of perjury. The current backup withholding tax rate is 28%. FATCA—U.S.Holders and Non-U.S.Holders Sections 1471 through 1474 of the Code,impose a 30%withholding tax on certain types of payments made to foreign financial institutions, unless the foreign financial institution enters into an agreement with the U.S. Treasury to, among other things,undertake to identify accounts held by certain U.S.persons or U.S.-owned entities, annually report certain information about such accounts, and withhold 30% on payments to account holders whose actions prevent it from complying with these and other reporting requirements, or unless the foreign financial institution is otherwise exempt from those requirements. In addition,FATCA imposes a 30%withholding tax on the same types of payments to a non-financial foreign entity unless the entity certifies that it does not have any substantial U.S. owners or the entity furnishes identifying information regarding each substantial U.S. owner. Failure to comply with the additional certification, information reporting and other specified requirements imposed under FATCA could result in the 30% withholding tax being imposed on payments of interest and principal under the 2015 Bonds and sales proceeds of 2015 Bonds held by or through a foreign entity. In general,withholding under FATCA currently applies to payments of U.S. source interest (including OID) and will apply to (i) gross proceeds from the sale, exchange or retirement of debt obligations paid after December 31, 2016 and(iii) certain"pass-thru" payments no earlier than January 1, 2017. Prospective investors should consult their own tax advisors regarding FATCA and its effect on them. The foregoing summary is included herein for general information only and does not discuss all aspects of U.S. federal taxation that may be relevant to a particular holder of 2015 Bonds in light of the holder's particular circumstances and income tax situation. Prospective investors are urged to consult their own tax advisors as to any tax consequences to them from the purchase, ownership and disposition of 2015 Bonds, including the application and effect of state,local,non-U.S.,and other tax laws. I APPROVAL OF LEGALITY The issuance of the 2015 Bonds is subject to the approval of legality by Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the City ("Bond Counsel"), substantially in the form set forth as APPENDIX D. Certain legal matters will be passed upon for the City by the office of the City Attorney and for the Underwriters by Norton Rose Fulbright US LLP, Los Angeles, California. Fees payable to Bond Counsel and Underwriters' Counsel are contingent on issuance of the 2015 Bonds. RATINGS [ and] Standard&Poor's Ratings Group have assigned the 2015 Bonds the ratings of"_" [and respectively]. Each rating reflects only the respective views of the applicable rating agency and any explanation of the significance of such rating may be obtained only from such rating agency. There is no assurance that either rating will remain in effect for any given period of time or that a rating will not be revised downward or withdrawn entirely by the rating agency assigning such rating, if, in its judgment, circumstances so warrant. Such ratings are not a recommendation to buy, sell or hold 2015 Bonds, and may be subject to revisions or withdrawal at any time. Any downward revision or withdrawal of any rating may have an adverse effect on the market price of the 2015 Bonds. i 60 UNDERWRITING J.P. Morgan Securities LLC, as representative of the underwriters listed on the front cover of this Official Statement (the "Underwriters") has agreed, subject to certain conditions, to purchase the 2015 Bonds at a price of $ (representing the $ aggregate principal amount of the 2015 Bonds [plus/less] $ [net] original issue [premium/discount] and less $ Underwriters' discount). The purchase contract provides that the Underwriters will purchase all the 2015 Bonds if any are purchased. The 2015 Bonds may be offered and sold by the Underwriters to certain dealers and others at prices lower than or yields higher than the public offering prices or yields stated on the inside cover page of this Official Statement, and such public offering prices or yields may be changed,from time to time,by the Underwriters. J.P. Morgan Securities LLC ("JPMS"), one of the Underwriters of the 2015 Bonds, has entered into negotiated dealer agreements (each, a"Dealer Agreement") with each of Charles Schwab & Co., Inc. ("CS&Co.") and LPL Financial LLC ("LPL") for the retail distribution of certain securities offerings at the original issue prices. Pursuant to each Dealer Agreement(if applicable to this transaction), each of CS&Co. and LPL will purchase 2015 Bonds from JPMS at the original issue price less a negotiated portion of the selling concession applicable to any 2015 Bonds that such firm sells. Citigroup Global Markets Inc., one of the Underwriters of the 2015 Bonds, has entered into a retail distribution agreement with each of TMC Bonds L.L.C. ("TMC") and UBS Financial Services Inc. ("UBSFS"). Under these distribution agreements, Citigroup Global Markets Inc. may distribute municipal securities to retail investors through the financial advisor network of UBSFS and the electronic primary offering platform of TMC. As part of this arrangement, Citigroup Global Markets Inc. may compensate TMC (and TMC may compensate its electronic platform member firms)and UBSFS for their selling efforts with respect to the 2015 Bonds. The Underwriters and their affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, principal investment, hedging, financing and brokerage activities. The Underwriters and their affiliates have, from time to time,performed,and may in the future perform,various investment banking services for the City, for which they received or will receive customary fees and expenses. i In the ordinary course of their various business activities,the Underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities)and financial instruments (which may include bank loans and/or credit default swaps) for their own account and for the accounts of their customers and may at an time hold long and short positions in such securities and instruments. Such investment and securities activities may involve securities and instruments of the City. FINANCIAL ADVISOR Public Financial Management, Inc. (the "Financial Advisor") has assisted the City with various matters relating to the planning, structuring and delivery of the 2015 Bonds. The Financial Advisor has not been engaged, nor has it undertaken, to make an independent verification or assume responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement. The Financial Advisor is an independent financial advisory firm and is not engaged in the business of underwriting or distributing municipal securities or other public securities. VERIFICATION REPORT Upon delivery of the 2015 Bonds, , independent certified public accountants, will deliver a report stating that the firm has verified the mathematical accuracy of certain computations relating to the adequacy of the maturing principal of and interest on the investments in the Escrow Fund and the other moneys in the Escrow Fund to pay,when due,the principal and redemption price of and interest on the Refunded 2009 Bonds. See"PLAN OF FINANCE"herein. I 61 j FINANCIAL STATEMENTS By a resolution adopted on December 15,2011,as clarified by a resolution adopted on January 3,2012,the City Council merged the Gas Fund into the Light and Power Fund for accounting and financial reporting purposes. Such merger of such funds for such purpose does not affect the operations of the Gas and Electric Department nor alters the obligations of the Light and Power Fund to bondholders or other creditors. Prior to July 1, 2011, the Gas Fund and the Light and Power Fund were reported as separate enterprise funds. The audited financial statements of the Electric System are included in the Light and Power Enterprise Annual Financial Report, and such merged fund is referred to in the Light and Power Enterprise Annual Financial Report as the Light and Power Enterprise. The audited financial statements of the Light and Power Enterprise for the Fiscal Year ended June 30,2014 and for the Fiscal Year ended June 30,2013,are included in APPENDIX A to this Official Statement. The financial statements have been audited by Vasquez& Company LLP,Los Angeles, California, independent accountants (the "Independent Accountants") as stated in their reports appearing in APPENDIX A. The City has not requested nor did the City obtain permission from the Independent Accountants to include the audited financial statements of the Light and Power Enterprise for the Fiscal Year ended June 30, 2014 and for the Fiscal Year ended June 30, 2013 as an appendix to this Official Statement. The Independent Accountants have not been engaged to perform and have not performed, since the dates of its reports included in the audited financial statements for the Fiscal Year ended June 30,2014 and for the Fiscal Year ended June 30,2013,respectively, any procedures on the financial statements addressed in such reports. The Independent Accountants also have not performed any procedures relating to this Official Statement. CONTINUING DISCLOSURE The City has covenanted for the benefit of the Owners and Beneficial Owners of the 2015 Bonds,pursuant to a Continuing Disclosure Agreement with the Trustee, to provide the MSRB through its EMMA System a copy of the Electric System's annual audited financial statements, as well as certain operating data and financial information relating to the Electric System(collectively,the"Annual Report"). Such audited financial statements are required to be prepared in accordance with generally accepted accounting principles. The City will provide to the MSRB through the EMMA System such Electric System information and its financial statements (unaudited, if audited financial statements are not available) within 180 days after the end of its Fiscal Year(which Fiscal Year ends on June 30), commencing with the Annual Report for Fiscal Year 2015 (which Annual Report is due December 27, 2015). If unaudited financial statements are provided, audited financial statements will be provided as soon as available. In addition, the City has agreed to give timely notice to the MSRB of the occurrence of certain enumerated events. These agreements have been made in order to assist the Underwriters in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) (the "Rule"). See APPENDIX E — "FORM OF CONTINUING DISCLOSURE AGREEMENT" hereto. During the last five years, [the City did not timely file a portion of its annual reports for fiscal years 2011-12 and 2012-13 as required by its continuing disclosure undertakings.] 62 lI i MISCELLANEOUS The covenants and agreements of the City for the benefit of the Owners of the 2015 Bonds are set forth in the Indenture, and reference is made to the Indenture for a statement of the rights of the Owners of the 2015 Bonds and the covenants and obligations of the City. All references to the 2015 Bonds are qualified in their entirety to the definitive form thereof and the information with respect thereto included in the Indenture. This Official Statement is not a contract with the Owners or Beneficial Owners of any of the 2015 Bonds. Any statements in this Official Statement involving matters of opinion and all estimates, whether or not expressly so stated, are intended as such and not as representations of facts and are not to be construed as representations that they will be realized. The execution and delivery of this Official Statement has been duly authorized by the City. CITY OF VERNON,CALIFORNIA By: City Administrator I 63 APPENDIX A AUDITED FINANCIAL STATEMENTS OF THE LIGHT AND POWER ENTERPRISE FOR THE FISCAL YEAR ENDED JUNE 30,2014 AND FOR THE FISCAL YEAR ENDED JUNE 30,2013 1 A-1 APPENDIX B SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE The following is a brief summary of certain provisions of the Indenture not previously discussed in this Official Statement. Such summary is not intended to be definitive, and reference is made to the Indenture in its entirety for the complete terms thereof. Capitalized terms used in this summary which are not otherwise defined in this Official Statement have the meanings ascribed to such terms in the Indenture. [TO COME] i B-1 APPENDIX C BOOK-ENTRY ONLY SYSTEM 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 Bonds,payment of principal,premium, if any, accreted value, if any, and interest on the Bonds to DTC Participants or Beneficial Owners,confirmation and transfers of beneficial ownership interests in the 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 2015 Bonds. The 2015 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 bond certificate will be issued for each maturity of the 2015 Bonds, each in the aggregate principal amount of such issue 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 has a Standard & Poor's rating of AA+. 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 the 2015 Bonds under the DTC system must be made by or through Direct Participants,which will receive a credit for the 2015 Bonds on DTC's records. The ownership interest of each actual purchaser of each 2015 Series Bond (`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 2015 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 certificates representing their ownership interests in the 2015 Bonds, except in the event that use of the book-entry system for the 2015 Bonds is discontinued. To facilitate subsequent transfers, all 2015 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 2015 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 knowledge of the actual Beneficial Owners of the 2015 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such securities 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. C-1 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 2015 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2015 Bonds, such as redemptions,tenders, defaults and proposed amendments to the 2015 Bond documents. For example, Beneficial Owners of 2015 Bonds may wish to ascertain that the nominee holding the 2015 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 the notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the 2015 Bonds within an issue are being redeemed,DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the 2015 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 the 2015 Bonds are credited on the record date(identified in a listing attached to the Omnibus Proxy). Redemption proceeds,distributions and dividend payments on the 2015 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,nor its nominee, 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 shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the 2015 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,2015 Bond 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,2015 Bond certificates will be printed and delivered to DTC. I C-2 APPENDIX D PROPOSED FORM OF OPINION OF BOND COUNSEL Upon delivery of the 2015 Bonds, Orrick,Herrington&Sutcliffe LLP,Bond Counsel to the City,proposes to render its final opinion in connection with the 2015 Bonds in substantially the following form: [Date of Delivery] City Council City of Vernon Vernon,California City of Vernon Electric System Revenue Bonds 2015 Taxable Series A (Final Opinion) Ladies and Gentlemen: We have acted as bond counsel to the City of Vernon, California(the "City") in connection with the issuance of$ aggregate principal amount of City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A (the "2015 Series Bonds"). The 2015 Series Bonds have been issued pursuant to the City of Vernon Municipal Facilities Revenue Bond Law,constituting Article XI of the Vernon City Code(the"Bond Law") and an Indenture of Trust, dated as of September 1,2008 (as amended and supplemented,the"Indenture"),between the City and The Bank of New York Mellon Trust Company,N.A., as trustee(the"Trustee"),including as amended and supplemented by the Fourth Supplemental Indenture of Trust,dated as of July 1,2015,between the City and the Trustee. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Indenture. In such connection,we have reviewed the Charter,the Bond Law,the Indenture,certificates of the City,the Trustee and others,opinions of counsel to the City, the Trustee and others, and such other documents, opinions and matters to the extent we deemed necessary to render the opinions set forth herein. The Indenture provides that the Bonds,including the 2015 Series Bonds,are special obligations of the City, secured by a pledge of, and payable solely from, the Trust Estate. The Indenture further provides that the Bonds, including the 2015 Series Bonds, are not secured by a legal or equitable pledge of, or lien or charge upon, any of the City or an of its income or receipts except the pledge of the Trust Estate and that the pledge of property Y Y p p P g p g Revenues and amounts in the Light and Power Fund pursuant to the Indenture shall be on a parity with any pledge thereof securing Parity Obligations. The opinions expressed herein are based on an analysis of existing laws, regulations, rulings and court decisions and cover certain matters not directly addressed by such authorities. Such opinions may be affected by actions taken or omitted or events occurring after the date hereof. We have not undertaken to determine or to inform any person whether any such actions are taken or omitted or events do occur or any other matters come to our attention after the date hereof. Accordingly,this letter speaks only as of its date and is not intended to,and may not, be relied upon or otherwise used in connection with any such actions, events or matters. Our engagement with respect to the 2015 Series Bonds has concluded with their issuance, and we disclaim any obligation to update this letter. We have assumed the genuineness of all documents and signatures presented to us(whether as originals or as copies) and the due and legal execution and delivery thereof by, and validity against,any parties other than the City. D-1 We have assumed, without undertaking to verify, the accuracy of the factual matters represented, warranted or certified in the documents and certificates, and of the legal conclusions contained in the opinions,referred to in the second paragraph hereof. We call attention to the fact that the rights and obligations under the 2015 Series Bonds and the Indenture and their enforceability may be subject to bankruptcy, insolvency, receivership, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against municipal corporations in the State of California. We express no 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 foregoing documents, nor do we express any opinion with respect to the state or quality of title to or interest in any of the assets described in or as subject to the lien of the Indenture or the accuracy or sufficiency of the description contained therein of,or the remedies available to enforce liens on, any of such assets. Our services did not include financial or other non-legal advice. Finally,we undertake no responsibility for the accuracy, completeness or fairness of the Official Statement or other offering material relating to the 2015 Series Bonds and express no opinion with respect thereto. Based on and subject to the foregoing,and in reliance thereon,as of the date hereof,we are of the following opinions: 1. The 2015 Series Bonds constitute the valid and binding special obligations of the City. 2. The Indenture has been duly executed and delivered by, and constitutes the valid and binding obligation of, the City. The Indenture creates a valid pledge, to secure the payment of the principal of and interest on the Bonds, including the 2015 Series Bonds, of the Trust Estate, subject to the provisions of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein. 3. Interest on the 2015 Series Bonds is exempt from State of California personal income taxes. We express no opinion regarding other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on,the 2015 Series Bonds. Faithfully yours, D-2 APPENDIX E FORM OF CONTINUING DISCLOSURE AGREEMENT The City of Vernon and the Bank of New York Mellon Trust Company, N.A. will enter into a Continuing Disclosure Agreement relating to the 2015 Bonds in substantially the following form: OHSUSA:761725341.4 E-1 CONTINUING DISCLOSURE AGREEMENT This Continuing Disclosure Agreement, dated as of July 1, 2015, is executed and delivered by the City of Vernon (the "City"), a municipal corporation and chartered city organized and existing under and by virtue of the Constitution of the State of California and its Charter and The Bank of New York Mellon Trust Company, N.A., a national banking association duly organized and existing under and by virtue of the laws of the United States of America, as Trustee, in connection with the issuance by the City of its Electric System Revenue Bonds, 2015 Taxable Series A. WITNESSETH: WHEREAS, the City has issued $ aggregate principal amount of its 2015 Series Bonds (capitalized terms used herein shall have the meanings given such terms pursuant to Section 2 hereof)pursuant to the Indenture; and WHEREAS, in connection with the issuance of the 2015 Series Bonds, the City desires to enter into this Disclosure Agreement to permit the Participating Underwriters of the 2015 Series Bonds to comply with the Rule; NOW THEREFORE, for and in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows: Section 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered bythe City and the Trustee for the benefit of the Owners and Beneficial Owners of the 2015 Series Bonds and in order to assist the Participating Underwriters in complying with the Rule. Section 2. Definitions. Unless otherwise defined in this Section, capitalized terms used in this Disclosure Agreement shall have the meanings given such terms in the Indenture (as defined below). The following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report to be provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement. "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 2015 Series Bonds (including persons holding 2015 Series Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any 2015 Series Bonds for federal income tax purposes. "Disclosure Representative" shall mean the [Finance Director] of the City, or such other officer or employee of the City as the City shall designate in writing to the Trustee from time to time. "Disclosure Agreement" shall mean this Continuing Disclosure Agreement, as amended and supplemented. i OHSUSA:761725341.4 4 "Dissemination Agent" shall mean The Bank of New York Mellon Trust Company, N.A., acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the City and which has filed with the Trustee a written acceptance of such designation. "Indenture" shall mean the Indenture of Trust, dated as of September 1, 2008, between the City and the Trustee, as amended and supplemented, including as amended and supplemented by the Fourth Supplemental Indenture of Trust. "Listed Events" shall mean any of the events listed in subsections (a) and (b) of Section 5 of this Disclosure Agreement. "MSRB" shall mean the Municipal Securities Rulemaking Board or any other entity designated or authorized by the SEC to receive reports pursuant to the Rule. Until otherwise designated by the MSRB or the SEC, filings with the MSRB are to be made through the Electronic Municipal Market Access (EMMA) website of the MSRB, currently located at http://emma.msrb.org. "Official Statement" shall mean the Official Statement, dated , 2015, relating to the 2015 Series Bonds. "Participating Underwriters" shall mean any of the original underwriters of the 2015 Series Bonds required to comply with the Rule in connection with offering of the 2015 Series Bonds. "Responsible Officer" shall mean an officer of the Trustee at the corporate trust office of the Trustee with regular responsibility for the administration of matters related to the Indenture. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State" shall mean the State of California. Section 3. Provision of Annual Reports. (a) The City shall, or, by written direction shall cause the Dissemination Agent to, not later than 180 days after the end of each Fiscal Year of the City (which Fiscal Year currently ends on June 30), commencing with the report for the 2014-15 Fiscal Year (which report for the 2014-15 Fiscal Year shall be due December 27, 2015), provide to the MSRB an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. The Annual Report may cross-reference other information as provided in Section 4 of this Disclosure Agreement; provided that the audited financial statements of the City's Electric System may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the City's Fiscal Year changes, it shall give notice of such change in a filing with the I OHSUSA:761725341.4 5 MSRB. The Annual Report shall be submitted on a standard form in use by industry participants or other appropriate form and shall identify the 2015 Series Bonds by name and CUSIP number. (b) Not later than fifteen (15) Business Days prior to the date specified in subsection (a) of this Section, the City shall provide the Annual Report to the Dissemination Agent (if the Trustee is not the Dissemination Agent) and the Trustee. If by such date the Trustee has not received a copy of the Annual Report, the Trustee shall contact the City and the Dissemination Agent (if the Trustee is not the Dissemination Agent) to determine if the City is in compliance with the first sentence of this subsection (b). (c) If the Trustee is unable to verify that an Annual Report has been provided to the MSRB by the date required in subsection (a) of this Section, the Trustee shall, in a timely manner, send or cause to be sent to the MSRB a notice in substantially the form attached as Exhibit A. (d) The Dissemination Agent shall file a report with the City and the Trustee (if the Trustee is not the Dissemination Agent) certifying that the Annual Report has been provided pursuant to this Disclosure Agreement and stating the date it was provided. Section 4. Content of Annual Reports. The City's Annual Report shall contain or include by reference the following: (a) The audited financial statements of the City's Electric System for the prior fiscal year, including a statement of net assets, a statement of revenues, expenses and changes in net assets, and a statement of cash flows, all of which shall be prepared in accordance with generally accepted accounting principles as promulgated from time to time by the Government Accounting Standards Board applicable to the City's Electric System. Such financial statements may be included as part of the City's general purpose financial statements or the financial statements of the Gas and Electric Department. If the Electric System's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to subsection (a) of Section 3 hereof, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements required for the fiscal year being audited, 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 contained in the tables with the following headings in the Official Statement for the most recently ended fiscal year: (i) "CITY OF VERNON ELECTRIC SYSTEM RESOURCES USED TO SATISFY CITY'S LOAD REQUIREMENT"; (ii) "CITY OF VERNON ELECTRIC SYSTEM AVERAGE BILLING PRICE (CENTS PER KILOWATT-HOUR)"; (iii) "CITY OF VERNON ELECTRIC SYSTEM CUSTOMERS, RETAIL SALES, REVENUES AND DEMAND"; and OHSUSA:761725341.4 6 (iv) "CITY OF VERNON ELECTRIC SYSTEM HISTORICAL REVENUE, EXPENSES AND DEBT SERVICE COVERAGE UNDER INDENTURE". Any or all of the items listed above may be set forth in one or a set of documents or may be included by specific reference to other documents, including official statements of debt issues with respect to which the City is an "obligated person" (as defined by the Rule), which have been made available to the public on the MSRB's website. 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 cause to be given, notice of the occurrence of any of the following events with respect to the 2015 Series Bonds not later than ten business days after the occurrence of the event: (i) Principal and interest payment delinquencies; (ii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iii) Unscheduled draws on credit enhancements reflecting financial difficulties; (iv) Substitution of credit or liquidity providers, or their failure to perform; (v) Adverse tax opinions or issuance by the Internal Revenue Service of proposed or final determination of taxability or of a Notice of Proposed Issue(IRS Form 5701 TEB); (vi) Tender offers; (vii) Defeasances; (viii) Rating changes; or (ix) Bankruptcy, insolvency, receivership or similar event of the obligated person. Note: for the purposes of the event identified in subparagraph (ix) above, 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 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. OHSUSA:761725341.4 7 (b) The City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the 2015 Series Bonds, if material, not later than ten business days after the occurrence of the event: (i) Unless described in subparagraph 5(a)(v), other material notices or determinations by the Internal Revenue Service with respect to the tax status of the 2015 Series Bonds or other material events affecting the tax status of the 2015 Series Bonds; (ii) Modifications to rights of Owners or Beneficial Owners; (iii) Optional, unscheduled or contingent 2015 Series Bond calls; (iv) Release, substitution, or sale of property securing repayment of the 2015 Series Bonds; (v) Non-payment related defaults; (vi) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the "obligated person," 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; or (vii) Appointment of a successor or additional trustee or the change of name of a trustee. (c) The Trustee shall, as soon as reasonably practicable, upon a Responsible Officer's obtaining actual knowledge of the occurrence of any of the Listed Events, contact the Disclosure Representative and shall inform such person of the event in writing. The Trustee shall have no duty to determine the materiality of any such Listed Events. For purposes of this Disclosure Agreement, "actual knowledge" of the occurrence of such Listed Events shall mean actual knowledge by a Responsible Officer. (d) Whenever the City obtains knowledge of the occurrence of a Listed Event described in subsection (b) of this Section, the City shall determine if such event would be material under applicable federal securities laws. (e) If the City learns of the occurrence of a Listed Event described in subsection (a) of this Section, or determines that knowledge of a Listed Event described in subsection (b) of this Section would be material under applicable federal securities laws, the City shall within ten business days of occurrence file a notice of such occurrence with the MSRB. Notwithstanding the foregoing, notice of the Listed Event described in subsections (a)(vii) or (b)(iii) of this Section need not be given under this subsection (e) any earlier than the notice (if any) of the underlying event is given to Owners of affected 2015 Series Bonds pursuant to the Indenture. OHSUSA:761725341.4 8 Section 6. Format for Flings with MSRB. Any report or filing with the MSRB pursuant to this Disclosure Agreement must be submitted in electronic format, accompanied by such identifying information as is prescribed by the MSRB. Section 7. Termination of Reporting Obligation. The City's and the Trustee's obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the 2015 Series Bonds. Section 8. 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; provided the Trustee shall receive written notice of such appointment, engagement and discharge at the time thereof. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the City pursuant to this Disclosure Agreement. If at any time there is not any other designated Dissemination Agent, the City shall perform the duties of the Dissemination Agent. The Dissemination Agent may resign by providing thirty days written notice to the City and the Trustee. Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the City and the Trustee may amend this Disclosure Agreement (and the Trustee shall agree to any amendment so requested by the City provided, the Trustee shall not be obligated to enter into any such amendment that modifies or increases its duties or obligations hereunder) 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 the provisions of subsection (a) of Section 3 hereof, Section 4 hereof or subsection (a) of Section 5 hereof, 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 an obligated person with respect to the 2015 Series Bonds, or the type of business conducted; (b) The undertaking herein, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the 2015 Series Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver either (i) is approved by the Owners of the 2015 Series Bonds in the same manner as provided in the Indenture for amendments to the Indenture with the consent of Owners, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Owners or Beneficial Owners of the 2015 Series Bonds. In the event of any amendment or waiver of a provision of this Disclosure Agreement, the City shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of OHSUSA:761725341.4 9 financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in a filing with the MSRB, and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 10. 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 required to be filed pursuant to this Disclosure Agreement, 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 in addition to that which is specifically required by this Disclosure Agreement, the City shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event or any other event required to be reported. Section 11. Default. In the event of a failure of the City or the Trustee to comply with any provision of this Disclosure Agreement, the Trustee shall at the written request of any Participating Underwriter or the Owners of at least 25% of the aggregate principal amount of the Outstanding 2015 Series Bonds, and upon provision of indemnification satisfactory to the Trustee, or any Owner or Beneficial Owner of a 2015 Series Bond may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City or the Trustee, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Agreement in the event of any failure of the City or the Trustee to comply with this Disclosure Agreement shall be an action to compel performance. Section 12. Duties, Immunities and Liabilities of Trustee and Dissemination Agent. Article VIII of the Master Indenture is hereby made applicable to this Disclosure Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Indenture and the Trustee and Dissemination Agent shall be entitled to the protections and limitations from liability afforded the Trustee thereunder. The Dissemination Agent and Trustee shall have only such duties hereunder as are specifically set forth in this Disclosure Agreement, and the City agrees to indemnify and save the Dissemination Agent and Trustee, their officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities, costs and expenses (including attorneys fees) due to the Dissemination Agent's or Trustee's respective fraud, violation of law, whether willful or negligent, negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent and the Trustee shall have no duty or obligation to review any information provided to them hereunder, and shall not be deemed to be acting in any fiduciary capacity under this Disclosure Agreement for the City, the i OHSUSA:761725341.4 10 Owners or any other party. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the City in a timely manner and in a form suitable for filing. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the 2015 Series Bonds. The City's payment obligations under this Disclosure Agreement shall be payable solely from the Light and Power Fund. Section 13. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows: To the City: City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Attention: City Administrator To the Trustee and The Bank of New York Mellon Trust Dissemination Agent: Company, N.A. 700 South Flower Street, Suite 500 Los Angeles, California 90017 Attention: Corporate Trust Department Any person may, by written notice to the other persons listed above, designate a different address to which subsequent notices or communications should be sent. Section 14. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the City, the Trustee, the Dissemination Agent, the Participating Underwriters and Owners and Beneficial Owners from time to time of the 2015 Series Bonds, and shall create no rights in any other person or entity. Section 15. Governing Law. This Disclosure Agreement shall 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. Section 16. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. OHSUSA:761725341.4 11 1 IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement as of the date first above written. CITY OF VERNON By: [Mark C. Whitworth, City Administrator] ATTEST: By: Maria E. Ayala, City Clerk APPROVED AS TO FORM: By: City Attorney THE BANK OF NEW YORK MELLON TRUST COMPANY,N.A., as Trustee By: I Authorized Officer I i I i OHSUSA:761725341.4 12 EXHIBIT A NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: City of Vernon Name of Bond Issue: City of Vernon Electric System Revenue Bonds, 2015 Taxable Series A Date of Issuance: , 2015 NOTICE IS HEREBY GIVEN that the City of Vernon (the "City") has not provided an Annual Report with respect to the above-named Bonds as required by 4.02 of the Fourth Supplemental Indenture of Trust, dated as of July 1, 2015, between the City and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), amending and supplementing the Indenture of Trust between the City and the Trustee, dated as of September 1, 2008, and by Section 3 of the Continuing Disclosure Agreement, dated as of July 1, 2015, between the City and the Trustee. [The City anticipates that the Annual Report will be filed by Dated: THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee,.on behalf of the City of Vernon cc: City of Vernon i I I A-1 Of VE • 1Y . RECEIVED J�N sVt'LY 1N�J� STAFF REPORT JUN 0 9 2015 JI )IN FIRE DEPARTMENT CITY ADM DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: Michael A. Wilson, Fire Chief Originator: Adriana Ramos,Administrative Secretary RE: A Resolution of the City Council of the City of Vernon Adopting an Amended and Restated General Fee Schedule Recommendation A. Find that approval of the resolution proposed in this staff report is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt the attached resolution adopting an amended and restated General Fee Schedule,to remove the word "Security" off the billing title for False Alarms, as proposed on Exhibit A, page 16. Background On July 1, 2014 the City of Vernon City Council approved and adopted a city-wide General Fee Schedule via Resolution No. 2014-42, as amended on August 5, 2014 by Resolution No. 2014- 50. Among other things, the General Fee Schedule includes a fee to defray a portion of the Vernon Fire Department's costs of responding to false alarms.1 A correction is needed on Exhibit A of the General Fee Schedule, to correct the billing title for False Alarms under the Fire Prevention Fees section. To be consistent with the California Fire Code and the Vernon Municipal Code, Section 104.12(b), the Fire Department recommends the 1 Vernon Municipal Code Section 114.1(r) defines False Alarm as "the willful and knowing initiation or transmission of a signal, message or other notification of an event of fire when no such danger exist, or the activation of any fire alarm system due to malfunction, mechanical or electrical defect, improper operation or procedure by any person, or a false oral, or written report to any department of the City of Vernon that an emergency exists requiring immediate or emergency response by the Vernon Fire Department". Page 1 of 2 name be changed from False Security Alarm to False Alarm. Removing the word "Security" from the billing title will help alleviate confusion that business owners and operators have expressed in light of the fact that the Vernon Police Department uses the same terminology in its billing. Fiscal Impact There is no fiscal impact associated with the proposed modification to the General Fee Schedule. Attachment Proposed resolution with Exhibit A, "General Fee Schedule, June 16, 2015" Page 2 of 2 RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND ADOPTING AN AMENDED AND RESTATED GENERAL FEE SCHEDULE WHEREAS, on July 1, 2014, the City Council of the City of Vernon adopted Resolution No. 2014-42 approving and adopting a General Fee Schedule; and WHEREAS, on August 5, 2014, the City Council of the City of Vernon adopted Resolution No. 2014-50 approving and adopting an updated General Fee Schedule; and WHEREAS, by memorandum dated June 16, 2015, the Fire Chief has recommended the City Council adopt an amended and restated General Fee Schedule to remove the word "Security" off the billing title for Fire Alarms; and WHEREAS, the Council desires to approve the amended and restated General Fee Schedule . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS : SECTION 1 : The City Council ,of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon finds that this action is not subject to 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 . SECTION 3 : The City Council of the City of Vernon hereby approves and adopts the amended and restated General Fee Schedule, a copy of which is attached hereto as Exhibit A. SECTION 4 : All resolutions or parts of resolutions, specifically Resolution Nos . 2014-42 and 2014-50, not consistent with or in conflict with this resolution are hereby repealed. SECTION 5 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name: Title : Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian W. Byun, De ty City Attorney - 2 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) I 3 - EXHIBIT A EXHIBIT A GENERAL FEE SCHEDULE CP~ FORK, {G ro 1905 ,4Q' 6 City of Vernon Schedule approved by City Council on June 16, 2015 CITY OF VERNON GENERAL FEE SCHEDULE TABLE OF CONTENTS ADMINISTRATIVEFEES-------------------------------------------------------------------------------------------------3 BUILDING, PLANNING, AND ENGINEERING FEES ------------------------------------------------------------4 PermitFees----------------------------------------------------------------------------------------------------------------4 Certificate of Occupancy Fees-----------------------------------------------------------------------------------------6 Inspection and Other Fees----------------------------------------------------------------------------------------------7 ENCROACHMENT, LICENSE&FRANCHISE FEES -------------------------------------------------------------8 Permit Issuance, Permit Inspection, and Plan Check Fees-------------------------------------------------------8 Reconstruction Fees for Work Completed by City Fees ---------------------------------------------------------8 Franchises and License(Issuance&Annual Renewal) ----------------------------------------------------------9 Encroachment Permit Faithful Performance Bond or Cash Deposit Requirements----------------------- 10 ENVIRONMENTAL CONTROL FEES------------------------------------------------------------------------------- 11 FoodPermits------------------------------------------------------------------------------------------------------------ 11 FoodVehicles----------------------------------------------------------------------------------------------------------- 11 Non-Food---------------------------------------------------------------------------------------------------------------- 12 Underground Storage Tanks----------------------------------------------------------------------------------------- 13 Hazardous Materials--------------------------------------------------------------------------------------------------- 13 WellPermits ------------------------------------------------------------------------------------------------------------ 13 Aboveground Petroleum Storage Tank Facility Permit-------------------------------------------------------- 13 FIREPREVENTION FEES ---------------------------------------------------------------------------------------------- 14 Fire Inspection/Re-inspection --------------------------------------------------------------------------------------- 14 FirePermit-Operational--------------------------------------------------------------------------------------------- 14 Fire Permit-Construction-------------------------------------------------------------------------------------------- 15 FireProtection Systems----------------------------------------------------------------------------------------------- 16 FireAlarm Systems---------------------------------------------------------------------------------------------------- 16 PublicEducation------------------------------------------------------------------------------------------------------- 16 State Mandated Fire Inspections------------------------------------------------------------------------------------ 17 Other---------------------------------------------------------------------------------------------------------------------- 17 POLICEFEES--------------------------------------------------------------------------------------------------------------- 18 General------------------------------------------------------------------------------------------------------------------- 18 FalseSecurity Alarms------------------------------------------------------------------------------------------------- 18 Subpoenas and Discovery Motions--------------------------------------------------------------------------------- 18 City of Vernon Master Fee Schedule ADMINISTRATIVE FEES COPIES OF PUBLIC RECORDSANFORMATION Copies of identifiable Public Record $0.15 /page Certified copies of identifiable Public Record $1.75 /record SUBPOENA FEE Safety Personnel $275 /appearance Miscellaneous Personnel $150 /appearance STAFF TIME — Special Projects Beyond Normal Course of Business As provided for in the California Public Records Act, City's staff time spent on extraordinary or infrequent requests that are large in scope or require development of information to satisfy such requests will require the requestor to reimburse the City for its actual direct cost. Actual direct cost will include the City staff s fully burdened hourly rate which includes PERS and Medicare. Outsourced consultant and attorney fees will be at cost billed to the City. A deposit, based upon an estimate to fulfill a request, will be collected prior to commencement. CREDIT CARD City's direct cost to process credit card transactions for the convenience of the credit card user shall be collected from the credit card user as part of the transaction. i MISCELLANEOUS Returned Checks $20.00 OTHER Administrative Citations See Resolution No. 2011-195 Civil Penalties See Resolution No. 2011-195 Page 3 of 18 City of Vernon Master Fee Schedule BUILDING, PLANNING, AND ENGINEERING FEES. PERMIT FEES Building, Electrical, Plumbing, Heating, Ventilating, Cooling, Refrigeration, and Fire Prevention Permits VALUATION FEE $1.00 to $2,000.00 $86.40 $2,001.00 to $5,000.00 $86.40 for the first $2,000.00 plus $4.32 for each additional $100.00 or fraction thereof,up to and including $5,000.00 $5,001.00 to $25,000.00 $216.00 for the first$5,000.00 plus $10.80 for each additional $1,000.00 or fraction thereof,up to and including $25,000.00 $25,001.00 to $50,000.00 $432.00 for the first $25,000.00 plus $8.10 for each additional $1,000.00 or fraction thereof,up to and including$50,000.00 $50,001.00 to $100,000.00 $634.50 for the first $50,000.00 plus $5.94 for each additional $1,000.00 or fraction thereof,up to and including $100,000.00 $100,001.00 to $500,000.00 $931.50 for the first $100,000.00 plus $4.32 for each additional $1,000.00 or fraction thereof,up to and including $500,000.00 $500,001.00 and up $2,659.50 for the first$500,000.00 plus $3.34 for each additional $1,000.00 or fraction thereof. Plan Check Fee when required, shall be equal to 65% of the Permit Fee. Plan Check Energy Fee 25% of the Permit Fee. Permit Energy Fee 10% of the Permit Fee. Page 4 of 18 City of Vernon Master Fee Schedule BUILDING, PLANNING, AND ENGINEERING FEES PERMIT FEES (CONT'D) DESCRIPTION FEE Green Building Standards Plan Review Mandatory Provisions $1,020.00 Green Building Standards Plan Review Tier 1 Provisions $2,040.00 Green Building Standards Plan Review Tier 2 Provisions $3,060.00 Green Building Standards Inspection Mandatory Provisions $1,000.00 Green Building Standards Inspection Tier 1 Provisions $1,975.00 Green Building Standards Inspection Tier 2 Provisions $2,950.00 Grading Plan Review Fee (First 3 sheets) $1,035.00 Grading Plan Review Fee Each Additional Sheet $225.00 Grading Inspection Fee $220.00 NPDES LID Plan Review $2,157.00 NPDES LID Inspection $942.00 Residential Solar Panel Installation $500.00 plus $15.00 per kilowatt for each kilowatt above 15kW Commercial/Industrial Solar Panel Installation $1,000.00 plus $7.00 per kilowatt for each kilowatt above 50 kw to250 kW and $5 per kilowatt for each kilowatt above 250kW Water Efficient Landscape Plan Review and Inspection fee $645.00 Industrial Wastewater Discharge Permit Application Review fee $140.00 Sanitary Sewer Flow Study fee $1,640.00 Green Building Standards Administration Special Revolving fee $1.00 for every $25,00-or portion thereof of valuation Penalty Fees Work commencing prior to the issuance of a permit shall be subject to an additional fee equal to the permit fee. (Authorized by California Building Code § 109.4.) Page 5 of 18 City of Vernon Master Fee Schedule BUIL G DIN , PLANNING, AND ENGINEERING FEES CERTIFICATE OF OCCUPANCY FEES AFFECTED FLOOR AREA FEE Inspection Fee Less than 5,000 square feet $300.00 5,001 to 50,000 square feet $689.00 50,001 to 100,000 square feet $815.00 Over 100,000 square feet $940.00 Issuance of a Temporary Certificate of Occupancy Less than 5,000 square feet $300.00 5,001 to 50,000 square feet $689.00 50,001 to 100,000 square feet $815.00 Over 100,000 square feet $940.00 Page 6 of 18 City of Vernon Master Fee Schedule BUILDING, PLANNING, AND ENGINEERING FEES INSPECTION AND OTHER FEES DESCRIPTION FEE Permit inspection outside of normal business hours $190.00/hr; (minimum charge four hours) Minimum of$760.00 Inspections for work not requiring a permit $131.00/hr Re-inspection fee $131.00/hr Additional structural plan review required by changes, additions $250.00/hr or revisions to the plans submitted or determination if an existing structure can accept additional loads Additional non-structural plan review required by changes, $131.00/hr additions or revisions to the plans submitted Certified Access Specialist (CASp)Review fee $106.00/hr Trailer Permit $395.00/trailer Trailer Permit for subsequent years $395.00 Final map, parcel map, or tentative map which contains four or $4,350.00 less parcels or lots Final map,parcel map, or tentative map which contains five or $8,650.00 paid at the time of more parcels or lots submittal plus any County surveyor& County Clerk filing fees & Fish & Game Section 711.4 fees Conditional Use Permit $12,950.00 plus applicant is responsible for cost to retain a consultant to prepare the environmental document for the project plus a 25% administration fee,plus any County Surveyor and County Clerk filing fees &Fish & Game Section 713 fees Zoning Variance and Zoning Amendment $8,625.00 Building Code Variance $3,800.00 Release of Building Drawings $50.00 Covenant and Lot Merger Review Fee $730.00 Certificate of Compliance Fee $790.00 Lot Line Adjustment Fee $2,260.00 Grant/Easement Deed Review $1,125.00 Zoning Verification $215.00 Page 7 of 18 City of Vernon Master Fee Schedule ENCROACHMENT, LICENSE & FRANCHISE FEES DESCRIPTION FEE PERMIT ISSUANCE FEE $125.00 PERMIT INSPECTION AND RATE PLAN CHECK FEES REGULAR TIME (7:00 A.M.- $129.000/HR. 5:30 P.M.) OVERTIME-FRIDAY, $190.00/HR. SATURDAY, SUNDAY, HOLIDAYS AND NIGHTS (4 HRS. MINIMUM) ANNUAL PERMIT FEE FOR $450.00 ROUTINE MAINTENANCE (NO STREET CUTS) RECONSTRUCTION FEES RATE MINIMUM FOR WORK COMPLETED BY CITY ALL OTHER DIRECT COSTS TO THE CITY RESULTING FROM THE PERMITEE'S ACTIVITY, CALCULATED AT ACTUAL COST PLUS 25% ADMINISTRATIVE COSTS Page 8 of 18 City of Vernon Master Fee Schedule .ENCROACHMENT, LICENSE & FRANCHISE FEES DESCRIPTION ISSUANCE ANNUAL FEE FRANCHISES AND LICENSES (ISSUANCE & ANNUAL RENEWAL) RAILROAD CROSSINGS, $25,000.00 $2,500.00 CONVEYOR BRIDGES, AND TUNNELS ACROSS A STREET RAILROAD TRACKS, $25,000.00 FOR EACH ONE- $2,500.00 FOR EACH PIPELINES OR CONDUITS HALF (1/2) MILE OR ONE-HALF (1/2) MILE ALONG A STREET PORTION THEREOF OR PORTION THEREOF FOR PIPELINES OR $12,500.00 $1,250.00 CONDUITS ACROSS A STREET OR A METERING MANHOLE IN THE STREET FOR BUILDING FOOTINGS $5,000.00 $500.00 AND APPENDAGES, TRAFFIC SENSORS, SIGNS, MONITORING WELLS AND ARCHITECTURAL PROJECTIONS The fee for any encroachment not specifically listed in the table shall be the same fee for the most similar structure listed in the table as determined by the City. Page 9 of 18 City of Vernon Master Fee Schedule ENCROACHMENT, LICENSE & FRANCHISE FEES ENCROACHMENT PERMIT FAITHFUL PERFORMANCE BOND OR CASH DEPOSIT REQUIREMENTS The amount of an encroachment permit cash deposit, certified or cashier's check, surety bond, or letter of credit shall be determined by multiplying the quantity of asphalt paving, concrete paving, sidewalk, concrete curb, monuments and trench excavations proposed to be removed, disturbed or opened by the rate shown in the table below,the sum of the totals shall establish the minimum amount of the bond or deposit, except that in no case shall the faithful total security be less than $5,000. Authorized by Vernon Municipal Code § 22.47. TYPE OF WORK TO BE PERFORMED RATE ASPHALT PAVEMENT $17.75/SQ. FT. CONCRETE PAVEMENT AND DRIVEWAY $19.75/SQ. FT. CONCRETE SIDEWALK $10.25/SQ. FT. CONCRETE CURB & GUTTER $52.50/LIN. FT. TRENCH EXCAVATIONS $7,500.00/EACH OPEN EXCAVATION MONUMENT REPLACEMENT $3,000.00/MONUMENT Page 10 of 18 City of Vernon Master Fee Schedule ENVIRONMENTAL CONTROL FEES PERMIT TYPE FEES FOOD PERMITS: CATERER (1625) - ANNUAL $283 CATERER(1625) -DAILY $94 COMMERCIAL AGRICULTURAL OPERATION (1677) $161 COMMISSARY (1650) $577 FOOD PROCESSING (1655): <=2,000 SQ. FT. $405 ESTABLISHMENT (1656): > 2,000 SQ.FT. $843 FOOD VENDING MACHINE BUSINESS (1644) $33/MACHINE FOOD WAREHOUSE (1647) $324 RESTAURANT (1622-1623): 0-30 SEATS $324 RESTAURANT(1622-1623): 31 SEATS & OVER $642 RETAIL FOOD MARKET(1611) $314 RETAIL FOOD PRODUCTION ESTABLISHMENT (1615) $314 TEMPORARY EVENT ORGANIZER(1660) $235 TEMPORARY FOOD FACILITY (1670) $91 FOOD VEHICLES: MOBILE FOOD FACILITY (1638 Fruit & Veg) $175 A. WHOLE PRODUCE (RFVV) (1636 Packaged food) $175 MOBILE FOOD PREP UNIT (HOT TRUCK) (1635) - $430 ANNUAL MOBILE FOOD PREP UNIT (HOT TRUCK) (1635) - DAILY $145 WHOLESALE FOOD VEHICLE (1637) $95 RETAIL FOOD VEHICLE (COLD TRUCK) (1634) $95 Page 11 of 18 City of Vernon Master Fee Schedule ENVIRONMENTAL CONTROL FEES PERMIT TYPE FEES NON-FOOD: GARMENT MANUFACTURING (3130) $308 LAUNDRY FACILITY $244 (N/A IF FACILITY IS NOT A VERNON BUSINESS) (7822) LAUNDRY VEHICLE (7823) $95 PER VEHICLE WASTE PROCESSING FACILITY (7437) $357 WASTE TRANSFER STATION (7444) $244 WASTE COLLECTION BUSINESS (7422) $1,193 WASTE COLLECTION VEHICLE (7423) $207 WASTE COLLECTION VEHICLE YARD (7442) $260 RENDERING PLANT BUSINESS (7456) $423 RENDERING PLANT VEHICLE (7462) $207 WASTE DISPOSAL SITE (7433) $244 WATER SUPPLY UTILITY(7611) $8 / SERVICE CONNECTION LIQUID WASTE PUMPING BUSINESS (7241) $207 LIQUID WASTE PUMPING VEHICLE (7244) $181 OFFAL BUSINESS (7424) $207 OFFAL VEHICLE (7425) $181 Page 12 of 18 City of Vernon Master Fee Schedule ENVIRONMENTAL CONTROL FEES PERMIT TYPE FEES UNDERGROUND STORAGE TANKS: UNDERGROUND STORAGE TANK FACILITY (4110) $975 /FACILITY ANNUAL TANK OPERATING PERMIT(4100) $637/TANK HAZARDOUS MATERIALS: APPLICATION FEE $255 HAZARDOUS MATERIALS PERMIT CLASS A (4201) $380 CLASS B (4202) $429 CLASS C (4203) $1,590 CERTIFICATE OF CLOSURE LETTER(4252) $268 Hazardous Material Closure: Small $244 Medium $488 Large $732 Ex-large $976 WELL PERMITS: DRILLING A WATER WELL (7368) $505 DESTROYING OR CONVERTING AN EXISTING WATER $505 WELL (7369) DRILLING A MONITORING WELL < 50 FT. (7365) $455 REPAIRING/MODIFYING A WELL (7371) $372 ABOVEGROUND PETROLEUM STORAGE TANK FACILITY PERMIT Category 4001 -> 1320 gallons and < 10,000 gallons $210 Category 4002 -> 10,000 gallons and< 100,000 gallons $420 Category 4003 -> 100,000 gallons and < 1,000,000 gallons $800 Category 4004 -> 1,000,000 gallon $1,600 GENERAL PLAN CHECK 1-5 sheets $426 6-10 sheets $792 I1-25 sheets $1,036 Additional sheets $181 Page 13 of 18 City of Vernon Master Fee Schedule FIRE FEES FIRE PREVENTION FEE Annual Business Fire Inspection (based on building size) 0 to 5,000 sq. ft. $217 5001 to 9,999 sq. ft. $248 10,000 to 24,999 sq. ft. $279 25,000 to 50,000 sq. ft. $310 50,001 to 99,999 sq. ft. $341 100,000 to 249,999 sq. ft. $372 250,000 sq. ft. and greater $403 Annual Business Fire Re-Ins ectionX after 211 re-inspection) I"re-inspection $0 2nd re-inspection and additional inspections beyond $322 ea. Fire Department Permit (Required Operational Permits) • Aerosol Products • Combustible dust operations • Combustible fiber storage • Explosives (fireworks only) • Flammable & combustible liquids • Hazardous materials • High-piled storage • Miscellaneous combustible storage $107.00/hr. • Ovens—industrial baking & drying • Repair garages • Special events (assemblies>50 people) • Spraying and dipping • Tents &temporary membrane structures (>400 sq. ft.) • Waste handling • Woodworking plants Page 14 of 18 City of Vernon Master Fee Schedule FIRE FEES FIRE PREVENTION CONT'D FEE Fire Department Permit (Required Construction Permits) Construction permits include: • Automatic fire-extinguishing systems • Battery Systems • Compressed gases • Cryogenic fluids • Emergency responder radio coverage system • Fire alarm and detection systems and related equipment • Fire pumps and related equipment • Flammable and combustible liquids • Hazardous materials • Industrial ovens • LP-gas • Private fire hydrants • Solar photovoltaic power systems • Spraying or dipping • Standpipe systems • Temporary membrane Structures and tents VALUATION $1.00 to $2,000.00 $157.60 $157.60 for the first$2,000.00 plus $7.88 for each $2,001.00 to $5,000.00 additional $100.00 or fraction thereof,up to and including $5,000.00 $394.00 for the first$5,000.00 plus $19.70 for each $5,001.00 to $25,000.00 additional $1,000.00 or fraction thereof, up to and including $25,000.00 $788.00 for the first$25,000.00 plus $14.78 for $25,001.00 to $50,000.00 each additional $1,000.00 or fraction thereof, up to and including $50,000.00 $1157.50 for the first $50,000.00 plus $10.84 for $50,001.00 to $100,000.00 each additional $1,000.00 or fraction thereof, up to and including $100,000.00 $1699.50 for the first $100,000.00 plus $7.88 for $100,001.00 to $500,000.00 each additional $1,000.00 or fraction thereof, up to and including $500,000.00 $500,001.00 and UP $4851.50 for the first$500,000.00 plus $6.11 for each additional $1,000.00 or fraction thereof Plan Check Fee when required, shall be equal to 65% of the Permit Fee. The minimum Plan Check Fee for Automatic Fire Sprinkler Hydraulic Calculations shall be $250.00. Page 15 of 18 City of Vernon Master Fee Schedule FIRE FEES FIRE PREVENTION (CONT'D) FEE Constructions permit inspection outside of normal business hours $642.00 (minimum charge four hours at a rate of$160.50 per hr.) Inspections for work not requiring a permit $107.00/hr. Construction and operational permit re-inspection fee $107.00/hr. Additional plan review required by changes, additions or revisions to $107.00/hr. the plans submitted Additional plan review required by changes, additions or revisions to $99.00/hr. the plans submitted to the outside fire consultant Penalty Fees - Work commencing prior to the issuance of a construction permit shall be subject to an additional fee equal to the construction permit fee. (See California Building Code § 109.4) Fire Protection Systems Back flush- Five year sprinkler system testing (per system) $150 Fire Alarm Systems Fire alarm registration(initial) $54 Fire alarm registration(annual) $27 False Alarm no charge for the first two within a fiscal ear 3rd false seeurit�-alarm with emergency response $749 4th false seeualarm with emergency response $874 5th false seeufit�-alarm with emergency response $999 6th false seeufit�-alarm with emergency response, and each additional $1,124 sew alarm thereafter Public Education Community Emergency Response Training (CERT) (supplies) $0 CPR training (supplies) $100 per person Evacuation planning & drill $0 Fire extinguisher training-Max. 30 students $50/ea. session Page 16 of 18 City of Vernon Master Fee Schedule FIRE FEES FIRE PREVENTION (CONT'D) T FEE State Mandated Fire Inspections Apartments and schools $161 Other Fees After-hours fire inspection (based on 4 hour minimum) $696 Apparatus and crew charge (hourly)—Per CAL OES State Fire $200 hr. Program Fire code appeals (not refundable) $239 Film Permit $214 Inspection charge (special events) $107 Standby service (4 hour minimum per man hour) $98 Page 17 of 18 City of Vernon Master Fee Schedule POLICE FEES General: Fees Vehicle release fee - standard $40.00 Vehicle release fee - driving under the influence $115.00 Fee to release complete copy of arrest reports, traffic accident reports, $20.00 incident reports Fee to release complete copy of arrest reports, traffic accident reports, $25.00 and incident reports (certified) Fee to release certified traffic citation $1.75 Repossession fee for vehicles repossessed in Vernon (Government $15.00 Code 41612) VIN verification fee $35.00 Citation sign-off fee $35.00 DUI Emergency Response City's cost False Security Alarms: (no charge for the first 3 within a fiscal year) 4th false security alarm $134.00 5th false security alarm $165.00 6th false security alarm $196.00 7th false security alarm, and each additional security alarm thereafter $227.00 Subpoenas and Discovery Motions: $195.00 Basic Police background investigation $15.00 Video tape copy (blank tape provided by requester) (VHS) $15.00 Video tape copy (blank tape provided by requester) (digital) $15.00 Page 18 of 18 RECEIVE °9"E IS- JUN 10 2015 LT N REPORT STAFF CITY ADMINISTRATION S VERNON GAS & ELECTRIC DEPARTMENT DATE: June 16,2015 r TO: Honorable Mayor and City Council -� FROM: Carlos Fandino Jr., Director of Vernon Gas & Electric Department Originator: Diana Figueroa,Administrative Secretary RE: Economic Development Rate Agreement and Amendment to the Interruptible Service Agreement by and between the City of Vernon and Matheson Tri-Gas Recommendation A. Find that the Economic Development Rate and the Amendment to the Interruptible Service Agreements by and between the City of Vernon and Matheson Tri-Gas are exempt under 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, because the respective agreements do not have an impact; and B. Approve the Economic Development Rate ("EDR") agreement with Matheson Tri-Gas ("Matheson") which will extend the eligibility term for the incentive from five (5) years to ten (10) years with a combined economic development rate discount and voltage discount of up to a total of 25%; and C. Approve an amendment to the Interruptible Service agreement with Matheson Tri-Gas which states that the kW demand shall be increased, allowing Matheson to be permitted to change the Firm Service Level, and agreeing to their receipt of interruptible service credit in accordance with the applicable TOU-I rate schedule in effect. Background Matheson Tri-Gas operates an air separation plant in the City of Vernon. An existing electric service customer of the City, Matheson is one of its largest electric consumers. After much consideration of its business demands, Matheson has proposed to construct and operate an additional air separation plant within the City of Vernon starting in 2017. Page 1 of 3 With the potential implementation of a new facility, this customer has expressed concern to City staff about electricity as a significant cost element impacting their business. In order to accommodate Matheson's impending expansion in the City, VG&E has defined an electrical rate and service package that maintains competitiveness with its counterparts in the region. Staff is recommending that Matheson and the City enter into two separate agreements: an EDR agreement, and an amended Interruptible Service agreement. Agreement for Economic Development Incentive In April 2013, the City Council approved the Economic Development ("ED") rate schedule to encourage existing businesses to add electrical load and to provide incentive for new businesses considering a move into the City of Vernon, per Resolution No. 2013-46. In accordance with the ED rate schedule, Matheson's commitment to construct and operate an additional facility in the City at the contracted demand secures their eligibility to participate in the incentive program. The City of Vernon has agreed to modification of the Economic Development rate as set forth in Schedule ED. The notable terms of the agreement are detailed below: • Matheson agreed to increase its electrical load by at least 12,500 kW. The contracted demand of Matheson's aggregate electrical usage following the commencement of commercial operation of the new facility is estimated to be 27,000 kW. • The City agreed to offer a rate incentive of up to a total of 25%. The combination of the economic development rate incentive and the voltage discount will be 25% (5% EDR incentive and 20% voltage discount). o The current ED rate incentive is offered for a five (5) year term. Subject to Council approval, City staff agreed to extend the eligibility term from five (5) years to ten (10) years. Such five (5) percent EDR incentive will be increased by the amount of any reduction in voltage discount below the current 20% voltage discount level. o The City of Vernon agreed to use its best efforts to ensure that modification or adjustment to rates will not cause those components of Matheson's rates within the control of the City of Vernon to increase within any twelve (12) month period by more than five percent (5%). If the increase is greater than five percent (5%), the City will use its best efforts to minimize the aggregate rate increase to be equal or less than Southern California Edison ("SCE") and/or Los Angeles Department of Water and Power("LADWP"). o For purposes of determining a floor price in the event of a reduction to the EDR incentive rate, the marginal generation component of the floor price shall not exceed the City's cost to purchase from the California Independent Systems Operator ("CAISO")market. Amendment to the Interruptible Service Agreement Matheson is currently receiving service under the Interruptible Service Schedule, or TOU-I. Their desire is to continue to receive service under TOU-I for the total electrical load they will be utilizing, including the demand generated by operations at their proposed additional plant. Matheson and the City have collectively agreed to amend the existing Interruptible Service agreement to incorporate the following terms: Page 2 of 3 • Matheson's Interruptible demand shall be increased from 12,650 kW to 27,000 kW. • Matheson shall be permitted to change the Firm Service Level once a year. • Matheson will receive interruptible service credit in accordance with the applicable TOU-I rate schedule in effect. Fiscal Impact With the agreements in place, it is expected that Matheson will significantly increase their annual energy usage, which will thereby equate to additional revenues for the City. Attachment(s) 1. Agreement for Economic Development Incentive on Electric Service 2. Affidavit for Economic Development Rate 3. Amendment to Interruptible Service Agreement 4. Schedule No. TOU-I for General Service—Large Interruptible i Page 3 of 3 I i AGREEMENT FOR ECONOMIC DEVELOPMENT INCENTIVE ON ELECTRIC SERVICE This Agreement for Economic Development Incentive on Electric Service(this"Agreement") is between Matheson Tri-Gas,Inc.,a Delaware corporation("Applicant"),and the City of Vernon. RECITALS: A. The Economic Development rate was established and is made available at the City of Vernon's sole discretion. The Economic Development rate is set forth in the City of Vernon's rate Schedule ED. B. Applicant has an existing air separation plant (the "Existing Facility") located within the City of Vernon and is an existing electric service customer of the City of Vernon. Contingent upon the City of Vernon's approval and execution of this Agreement, Applicant proposes to construct and operate an additional air separation plant within the City of Vernon (the "New Facility") and desires that the City of Vernon provide electric service to such New Facility. C. In consideration of Applicant's commitment to construct and operate the New Facility in the City of Vernon at the contracted demand, the City of Vernon has agreed to modification of the Economic Development rate as set forth in Schedule ED. AGREEMENT: Applicant and the City of Vernon agree to the following terms and conditions: 1. QUALIFICATION CRITERIA. Applicant is a customer cwTently receiving service under Schedule TOU-V. Applicant agrees that it will remain eligible to receive service under Schedule TOU-V during the term of this Agreement. The electric load subject to this Agreement is a maximum billing demand of at least 12,500 kW of net new load to the City of Vernon. The minimum 12,500 kW of net new load must be maintained for at least three (3)months during the initial twelve (12)months of the term of this Agreement following the Commencement Date. Only the new load that will be regularly served by the City of Vernon will be eligible for this incentive. 2. BILL INCENTIVE. Electric service to Applicant's premises shall be delivered under Applicant's otherwise applicable tariff("OAT"), which is Schedule TOU-V. A ten (10)year rate incentive will be applied to the customer's OAT(excluding taxes)as follows: The initial rate incentive under this Agreement is a Eve percent (5%) reduction which is in addition to the twenty percent (20%) voltage discount presently applicable to Applicant as set forth in Section 4 of Schedule TOU-V. �' 1 In the event the City of Vernon shall modify or replace Schedule TOU-V such that the existing twenty percent (20%) voltage discount is reduced, then the rate incentive under this Agreement shall automatically increase as necessary so that the total discount received by Applicant under this Agreement and the TOU-V volume discount during the ten(10) year term hereof is not less than twenty-five percent(25%). In addition, in the event that the City of Vernon shall modify or replace Schedule TOU-V or any successor schedule to Schedule TOU-V,and such modification or replacement results in an increase of rates or charges payable by Applicant as compared to rates and charges payable by Applicant under Schedule TOU-V as in effect prior to each such increase, then the City of Vernon agrees that any such rate increase shall be limited to such increases as are necessary to offset increases in the City of Vernon's costs of providing electric service to its customers (and not to increase the City of Vernon's profits therefrom) and agrees that such increases shall be reasonably and fairly allocated across all of its customers. Without limiting the foregoing, the City of Vernon will use its best efforts to ensure that any such modification or adjustment will not cause those components of Applicant's rates within the control of the City of Vernon in any twelve (12) month period to increase by more than five percent (50/6). If the increase is greater than five percent (50/o), the City of Vernon shall be deemed to have exercised best efforts if either of the following is true: (1) the aggregate rate increase, net of all discounts provided to Applicant, is equal to or less than the rate increase by Southern California Edison's schedule TOU-8 or Los Angeles Department of Water & Power's schedule A3, whichever is greater, for similar time periods; or(2) the increase of those components of Applicant's rates within the control of the City of Vernon occurred notwithstanding the efforts that a prudent person with similar experience and knowledge, desirous of ensuring the result,would use in similar circumstances to ensure that such result is achieved on commercially reasonable terms. This reduction shall be calculated on the rate components of the Applicant's bill that correlate to service that the City of Vernon provides to Applicant. If needed,the City of Vernon may reduce the foregoing incentive percentage as follows to ensure that revenues equal or exceed the Floor Price. For purposes hereof,the Floor Price shall mean the Floor Price set forth in Schedule ED except that for purposes hereof the "marginal generation cost" component of the Floor Price for any fiscal year shall not exceed the mean Day-Ahead Locational Marginal Price ("LMP") for Vernon Metered Subsystem load aggregation point(on-peak or off-peak, as applicable) for such fiscal year as published by the California Independent System Operator ("CAISO"). To the extent such information is not already in the public domain, upon request, the City of Vernon shall provide such load aggregation point data to Applicant for verification. The foregoing rate incentive under this Agreement will be limited by the Floor Price,as defined in Schedule ED and modified as set forth above. In calculating the Floor Price,the City of Vernon will make use of its best estimate of the marginal generation cost to serve Applicant. The revenues received from Applicant will be reviewed annually and/or at the end of this Agreement to ensure that they equal or exceed the Floor Price for each year of this Agreement,up to the OAT revenue that Applicant would have paid if it had not received the incentive. Applicant's rate under this Agreement will be subject to an annual review, with potential additional lump-sum charges due to the City of Vernon or credits due to Applicant as set forth in this paragraph. The charges shall ensure that the rate does not fall below the Floor Price each year. Credits, if available after the annual review, will be provided if the Applicant's incentive rate had been previously reduced from the rate incentive set forth above as a result of the application of the Floor Price limitation. 3. INCENTIVE CALCULATION. Terms and conditions necessary for the incentive calculation are defined and agreed to as follows.- The previous twelve (12) months of historical metered data for the Existing Facility have been used to determine Applicant's current demand and monthly usage levels as set forth below, and the incentive will be calculated only on that portion of demand and usage that is in addition to such current demand and monthly usage levels. During the annual and contract term review,the City of Vernon will compare the revenues received to the Floor Price (as modified above) to ensure that the revenues received remain at least equal to the Floor Price (as modified above) throughout the duration of this Agreement. The City of Vernon reserves the right to reduce the contracted demands stated by the Applicant below if it is determined that the Applicant's actual load at full operation of the Existing Facility and New Facility after the first anniversary of the Commencement Date as set forth in Section 4 below is more than twenty five percent(251/1o) less than the contracted maximum demand stated below. The contracted demand of the Applicant's aggregate load (for the Existing Facility and New Facility) following commencement of commercial operation of the New Facility is estimated to be 27,000 kW. The excluded demands are determined by averaging the Applicant's four (4) highest measured demands during each seasonal period during the twelve(12)month period preceding the date of execution of this Agreement. The City of Vernon and the Applicant agree that the excluded demand is: July to September: 13,423 kW May,June, October: 13,526 kW November to April: 13,534 kW provided, however, that if Applicant elects to separately meter the New Facility, Applicant's excluded demand for the New Facility will be zero (0)kW for each season. The Incentive Ratio for each month is defined as(i)the difference between the Applicant's maximum demand for that month and the excluded demand divided by (ii) that same month's maximum demand. The Incentive Ratio will be a fraction from zero (0) to one (1) and shall not be less than zero. The Economic Development rate discount is determined as the product of the rate incentive, the Incentive Ratio and the subtotal of charges on the rate components of the Applicant's bill that correlate to service that the City of Vernon provides to Applicant. 4. COMMENCEMENT DATE. The incentive shall commence on the Applicant's regularly scheduled meter read day (the "Commencement Date") in the first month following the commencement of commercial operation of the New Facility,which shall be within a twenty four(24) month period of the date of execution of this Agreement,as required by rate Schedule ED,provided that such twenty four (24)month period shall be extended by written agreement of the parties to the extent commercial operation of the New Facility is delayed due to Force Majeure events (as defined below). Applicant shall notify the City of Vernon of the date upon which commercial operation of the New Facility commences. For avoidance of doubt, operation of the New Facility in connection with commissioning and performance testing shall not constitute commercial operation. 5. METERING. Applicant agrees to be responsible for all costs associated with providing separate electric metering for the New Facility if separate metering is requested by Applicant or required by the City of Vernon. 6. TERM OF AGREEMENT. This Agreement shall take effect immediately and remain in effect for a term of ten (10) years following the Commencement Date of the rate incentive as set forth in Section 4 above. 7. TERMINATION AGREEMENT Applicant may terminate this Agreement upon thirty (30) days written notice. The City of Vernon may also terminate this Agreement upon thirty (30) days written notice in the event Applicant no longer meets the qualifications described elsewhere in the Agreement and in Rate Schedule ED. Notwithstanding these rights of termination, the Applicant shall be subject to Liquidated Damages as provided in Section 9 of this Agreement,if applicable. 8. "BUT FOR" TEST Applicant attests.that"but for" the terms of this Agreement, either on its own or in combination with a package of incentives made available to the Applicant from other sources, the Applicant would not have located, or increased its operations within the City of Vernon. Applicant shall sign the attached affidavit, to that effect. 9. LIQUIDATED DAMAGES If this Agreement is terminated due to Applicant's misrepresentation(in any material respect)or fraud, Applicant shall be liable for liquidated damages that equal 200% of the cumulative difference between(i)bills calculated under the Schedule ED rate for service to the New Facility to the date of termination and (ii) bills that would have been calculated for service to the New Facility without application of the rate incentive hereof and under the OAT to the date of termination. 10. ASSIGNMENT. Applicant may assign this Agreement only if the City of Vernon consents in writing, such consent not to be unreasonably withheld, delayed or conditioned, and the party to whom this Agreement is assigned agrees in writing to be bound by this Agreement in all respects;provided, however,that the City of Vernon's consent shall not be required in the case of(i)an assignment of this Agreement by Applicant to an Affiliate of Applicant or to a successor owner of the Existing Facility and New Facility, who in each case agrees in writing to be bound by this Agreement in all respects with respect to obligations arising from and after the date of assignment,or(ii) a collateral assignment of this Agreement by Applicant to a lender providing financing to Applicant. Unless and until any assignee is deemed by the City of Vernon to be as creditworthy as Applicant or otherwise satisfies the City of Vernon's customary credit support requirements for its electric service customers, Applicant shall remain responsible for such assignee's performance. Thereafter, Applicant shall be released from its obligations under this Agreement. "Affiliate"means, with respect to Applicant, any person or Iegal entity that, directly or indirectly, (i) controls or owns Applicant, (ii) is controlled or owned by Applicant or (iii) is under common control or Ownership with Applicant, where "own" (including, with correlative meanings, the tennis "owned by" and "under common Ownership with") means Ownership of fifty percent (50%) or more of the equity interests or rights to distributions on account of equity of the Person, and"control"(including,with correlative meanings,the terms"controlled by"and "under common control with") means the power to direct or cause the direction of the management or policies of the person or legal entity, whether through the Ownership of voting securities,by contract or otherwise. 11. FORCE MAJEURE A "Force Majeure" event means an event beyond the control of the Applicant or of the City of Vernon, which prevents either party from complying with any of its obligations under this Agreement, including but not limited to: (a) any act of God (such as, but not limited to, fires, explosions, earthquakes, drought, tidal waves and floods); (b) contamination by radioactivity from any nuclear fuel, or from any nuclear waste from the combustion of nuclear fuel, radioactive toxic explosive, or other hazardous properties of any explosive nuclear assembly or nuclear component of such assembly; (c) riot, commotion, strikes, go slows, lock outs or disorder;or(d)acts or threats of terrorism. 12. FORUM SELECTION The parties agree to exclusive jurisdiction and venue in the state and federal courts of the United States located in the State of California, City of Los Angeles for the purpose of litigating any claims or disputes arising out of or relating to this Agreement. 13. ATTORNEYS'FEES The prevailing party shall have the right to collect from the other party its reasonable costs and necessary disbursements and attorneys' fees incurred in enforcing this Agreement. 14. MISCELLANEOUS. This Agreement(a) shall be governed,construed and enforced in accordance with the laws of the State of California,without regard to its conflict of laws rules; (b) shall bind and benefit the City of Vernon and Applicant and their respective successors and permitted assigns; (b) may be modified or amended only by a writing signed by each party; (c) may be executed in several counterparts, and by the parties hereto in separate counterparts, and each counterpart, when executed and delivered, shall constitute an original agreement enforceable against all who signed it without production of or accounting for any other counterpart, and all separate counterparts shall constitute the same agreement and (d) embodies the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior conflicting or inconsistent agreements, consents and understandings relating to such subject matter. To the extent of any conflict between this Agreement and Schedule TOU-V or Schedule ED, this Agreement shall control. IN WITNESS THEREOF, the Parties have executed this Agreement in multiple originals of equal dignity by their respective duly authorized representatives. Executed this � .day of T:. 2015, Matheson Tri-Gas,Inc. The City of Vernon (App'lic-an�t) _ (Signature) (Signature) (Printed Name) (Printed Name) {Title) (Title) AFFIDAVIT FOR ECONOMIC DEVELOPMENT RATE By signing this affidavit, an Applicant who locates or adds load in the City of Vernon hereby certifies and declares under penalty of perjury under the laws of the State of California that the statements in the following paragraphs are true and correct. 1. But for the receipt of the discounted economic development rate and the terms of the Agreement, either on its own or in combination with an economic development incentive package, the load attributable to the Applicant's New Facility would not have been located, or added within the City of Vernon. 2. The New Facility load to which the Agreement applies represents kilowatt-hours (kWh) and kilowatts (kW) that either (i) does not already exist in the City of Vernon, or (ii) the Applicant considered expanding to a location outside of the City of Vernon. 3. Applicant has discussed with the City of Vernon the cost-effective conservation and load management measures the Applicant may take to reduce their electric bills and the load they place on the City of Vernon's utility system. 4. On an annual basis, the cost of electricity for the New Facility is estimated to be at least five(5)percent of its actual operating costs,less the cost of raw materials. Executed this day of 24 Matheson Tri-Gas,Inc. (Applicant) By.:, _ 7-- (Signature) �.. (Printed Name) (Title) ti AMENDMENTTO INTERRUPTIBLE SERVICE AGREEMENT This Am ndment to Interruptible Service Agreement("Amendment") is entered into this r�Day of May, 2015 by and between the CITY OF VERNON ("Vernon")and Matheson Tri- Gas, Inc. ("Customer"). WHEREAS,Vernon provides interruptible electric service to Customer pursuant to an Interruptible Service Agreement executed on September 18, 2006("2006 Agreement");and, WHEREAS, pursuant to the 2006 Agreement, in consideration for Customer's agreement to disconnect load within 30 minutes of receiving notice from Vernon, Customer receives monthly bill credit per kW month for interruptible demand Customer has committed to curtail at the time of interruption;and, WHEREAS,Customer has an existing air separation plant(the "Existing Facility")which Vernon services. Customer intends to construct and operate an additional air separation plant(the "New Facility")and desires that Vernon provide electric service to such New Facility as well. NOW,THEREFORE IT IS AGREED AS FOLLOWS: 1. Customer agrees to continue receiving interruptible electric service pursuant to the 2006 Agreement for both the Existing Facility and the New Facility,except as provided for below. 2. In section 1.1 of the 2006 Agreement, Customer's "Maximum Demand"and "Interruptible Demand"shall both be increased from "12,650 kW"to "27,000 kW," effective as of Customer's regularly scheduled meter read day(the "Commencement Date")in the first month following the commencement of commercial operation of the New Facility. Customer shall notify Vernon of the date upon which commercial operation of the New Facility commences. For avoidance of doubt,operation of the New Facility in connection with commissioning and performance testing shall not constitute commercial operation. 3. Notwithstanding the terms and conditions of Section 1.1 of the 2006 Agreement, Customer shall be permitted to adjust the Customer's Firm Service Level by delivering a notice in writing to Vernon; provided, however,that while such option may be exercised more than once per calendar year,the Firm Service Level in effect as of November 1 in any given calendar year shall be the Firm Service Level for the subsequent calendar year and may not be changed during that calendar year. For the avoidance of doubt and as an example,if Customer adjusts its Firm Service Level in December 2015,such adjustment will be the effective Firm Service Level for calendar year 2017, unless changed prior to November 1, 2016; provided,further,that adjustment of the Firm Service Level shall be effective as of the date stated in Customer's written notice of adjustment. If no date is stated in such written notice,the adjusted Firm Service Level shall be deemed effective as of the fifth (5th)day following the date of delivery of such written notice. CITY OF VERNON MATHESONN�TRII-Gy�A,.S,INC. W. Michael McCormick, Mayor ATTEST: BY: Maria E.Ayala,City Clerk APPROVED AS TO FORM: Brian W. Byun, Deputy City Attorney CITY OF VERNON GAS & ELECTRIC DEPARTMENT Schedule No.TOU-I GENERAL SERVICE-LARGE INTERRUPTIBLE APPLICABILITY This schedule is optional for all customers eligible for service under Schedule TOU-V who commit to curtail at least fifty percent (50%) of such customer's maximum demand,which shall not be less than 7,500 kW per Period of Interruption. In addition,the following conditions for eligibility shall apply: 1. Service Voltage must be greater than 50 kV;and 2. The customer's Maximum Demand must be 12,500 kW or above;and 3. This schedule is in effect until suspended by the Vernon Gas&Electric Department when, in their judgment,there is no additional need for Interruptible Demand. TERRITORY Within the city limits of the City of Vernon. RATES All charges and provisions of schedule TOU-V shall apply as follows: In accordance with the terms and conditions of this schedule the customer's bill will be credited per the following rate schedule per kW month for all kW in excess of the customer's specified Firm Demand Level. The on-peak and mid-peak bill credits will be based on the difference between the customer's monthly average kW demand (for on-peak and for mid-peak periods, respectively) and the customer's specified Firm Demand Level,where Authorized by the City of Vernon Ordinance No. 940 Effective 12/06/83 Resolution No. 2011-112 Effective 01/01/12 Resolution No. 2012-98 Effective 07/01/12 Resolution No. 2012-98 Effective 01/01/13 Resolution No. 2012-98 Effective 07/01/13 ^ Resolution No. 2014-30 Effective 07/01/14 Schedule TOU-I Page 2 Monthly Average On-Peak kW Demand=Total Monthly On-Peak kWh/Total Monthly On- Peak Hours Monthly Average Mid-Peak kW Demand=Total Monthly Mid-Peak kWh/Total Monthly Mid-Peak Hours. Rate Schedule Interruption Capacity Credits($/kW-month) Summer Winter May June. Oct July.August, & t Nov,thru April On-Peak 4.56 13.65 0.26 Mid-Peak 2.24 6.21 0.59 Charges for Excess Demand may apply under certain conditions,as provided in Special Condition 8. SPECIAL CONDITIONS 1, Interruptible Demand: The Interruptible Demand shall be the measured difference between the customer's demand, at the time of interruption,and the customer's Firm Demand Level. During a Period of Interruption, customer is expected to interrupt load such that it uses no more electricity than its specified Firm Demand Level. 2. Firm Demand Level: The Firm Demand Level is the Maximum Demand the Department is expected to supply during a Period of Interruption. 3. Excess Demand: The Excess Demand shall be the average kW demand measured which exceeds the Firm Demand Level during each Period of Interruption. The average kW demand is the total kWh recorded divided by total hours of interruption during each Period of Interruption. 4. Interruptible Service Agreement: To receive interruptible service under this schedule a customer shall sign an agreement for a specified term and Firm Demand Level. Eligible customers shall comply with all the provisions of their respective Agreements. AuLharind by the CityVempil Ordinance No. 940 Effective 12/06/83 Resolution No. 2011-I 12 Effective 01/01/12 Resolution No. 2012-98 Effective 07/01/12 Resolution No. 2012-98 Effective 01/01/13 Resolution No. 2012-98 Effective 07/01/13 Resolution No. 2014-30 Effective 07/01/14 Schedule TOU-1 Page 3 5. Notice of Interruption: The Department will give the customer a minimum thirty(30)minutes notice of a Period of Interruption to enable the customer to disconnect the necessary load to prevent Excess Demand. Communication procedures shall be specified in the Interruptible Service Agreement. 6. Period of Interruption: A Period of Interruption shall be an interval which commences thirty minutes after Notice of Interruption and which ends upon notification from the Department, during which time the customer will be required to disconnect sufficient load to reduce the demand on the system to the Firm Demand Level. A Period of Interruption can occur: a. Upon the notification from the Independent System Operator (ISO) requiring the Department to shed load,or b. Upon the unscheduled outage of the Malburg Generating Station or any other generating unit internal to the Department system. 7. Frequencies and Duration of Interruption: The Periods of Interruption will not exceed ten (10) instances per month or twenty-four per year nor last longer than twelve(12)consecutive hours in any single instance. 8. Excess Demand Charge: Upon the first occurrence of Excess Demand during a Period of Interruption, such Excess Demand shall be billed at $14.20 per kW. Upon the second occurrence of Excess Demand during a Period of Interruption,such Excess Demand shall be billed at$21.30 per kW. Upon the third occurrence of Excess Demand during a Period of Interruption, within the same twelve (12) month period, the customer will be disqualified from further interruptible rate service. 9. _Verification of Ability to Interrupt: Interruptible Rate Service customers shall periodically be required to demonstrate ability and willingness to disconnect all load except the specified Firm Demand Level within a Notice of Interruption Period. Testing procedures for such verification shall be specified in the Interruptible Service Agreement terms. Authorized bX the City of Vernon Ordinance No. 940 Effective 12/06/83 Resolution No. 2011-112 Effective 01/01/12 Resolution No. 2012-98 Effective 07/01/12 Resolution No. 2012-98 Effective 01/01/13 Resolution No. 2012-98 Effective 07/01/13 Resolution No. 2014-30 Effective 07/01/14 tit RECEIVE R,�S FICA. 5 JUG! 0 2 2015 s1yE1Y tN�J C\v CITY ADMINISTRATION STAFF REPORT HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: Leonard Grossberg, Director/Health Officer - - RE: Request for Authorization to Submit an Application to Receive and Spend Funds for the USED OIL PAYMENT PROGRAM—FY 2015/2016 RECOMMENDATION: It is recommended that the City Council: A Find that granting authority to submit and administer the funding application and related documents at issue in this staff report constitute administrative activities that do not constitute a"project" under California Environmental Quality Act (CEQA) Guidelines section 15378, and even if it did constitute a"project,"the submission and administration of this application and related documents is exempt under CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment. B. Approve the attached resolution approving the execution of an application for the 2015/2016 Used Oil Payment Program and authorizing the Director of Health&Environmental Control to (1) submit the Application and Certification to the Department of Resources Recycling and Recovery "CalRecycle" for Used Oil Grant Funds for FY 2015/2016 (OPP6), (2) execute any and all documents, including but not limited to, applications and agreements necessary for the purposes of securing funds and (3)to receive and spend the funds for the Used Oil Payment Program. BACKGROUND: Pursuant to Public Resources Code § 48690, the Department of Resources Recycling and Recovery ("CalRecycle"), formerly known as the California Integrated Waste Management Board, has established the Used Oil Payment Program to make payments to qualifying agencies for implementation of their used oil programs. In its administration of the Used Oil Payment Program, CalRecycle requires an agency's governing body to declare by resolution certain authorizations related to the agency's application for program funds. Since 1997,the Vernon City Council has authorized the preparation of applications to CalRecycle for Used Oil Grant Funds. Historically, the City has received annual approval for the applications and the City has received approximately $5,000 on a yearly basis (1997 through 2014). The grant funds have been used to improve the public's awareness of used oil recycling opportunities and the damage to the environment caused from releases of used oil. Funded activities have included: • The purchase of educational materials(pamphlets,etc.) • The distribution of free used oil-recycling containers to Vernon business employees and the public • Stormwater mitigation activities • The services of a consultant to conduct education outreach efforts "CalRecycle," recently announced the opportunity for cities to apply for funds under the used oil payment program, Fiscal-Year 2015/2016. Grant fund levels for Vernon are expected to be the same (approximately $5,000). FISCAL IMPACT: If approved,the City expects to receive approximately$5,000.00 in grant funds. There is a minor fiscal impact that is expected for administrative oversight of the grant activities. However, considering the benefits the City will receive by the grant funds contributing to outreach and educational programs, the Used Oil Payment Program is worthwhile. Please note that the application must be submitted electronically by Tuesday, June 30, 2015. Following City Council approval, our department will submit the required documents to CalRecycle (attached documents i.e.: the Resolution is due no later than July 30,2015). Thank you. Attachments(3) 1-Application Form 2-Application Certificate 3-Resolution Xc: Linda Smith, Administrative Secretary 9cLG:K/Leonard/Used Oil/OPP 6/request to apply.doc RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN APPLICATION FOR THE 2015/2016 USED OIL PAYMENT PROGRAM WHEREAS, pursuant to Public Resources Code § 48690, the Department of Resources Recycling and Recovery ("CalRecycle" ) , formerly known as the California Integrated Waste Management Board, has established the Used Oil Payment Program to make payments to qualifying jurisdictions for implementation of their used oil programs; and WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the Used Oil Payment Program; and WHEREAS, CalRecycle' s procedures for administering the Used Oil Payment Program require, among other things, an Applicant' s governing body to declare by resolution certain authorizations related to the administration of the Used Oil Payment Program; and WHEREAS, the City of Vernon received funds from the Used Oil Payment Program of approximately Five Thousand Dollars ($5, 000) per year from 1997 through 2014 ; and WHEREAS, the City of Vernon has used the funds to improve public awareness of opportunities to recycle used oil and the environmental damage caused by the improper disposal of used oil; and WHEREAS, CalRecycle is now accepting applications for the Used Oil Payment Program for the fiscal year 2015/2016 ("OPP Cycle 6" ) ; and WHEREAS, Vernon is expected to receive Five Thousand Dollars ($5, 000) for OPP Cycle 6 ; and WHEREAS, by memorandum dated June 16, 2015, the Director of Health & Environmental Control has recommended that the 2015/2016 Used Oil Payment Program Application be approved and executed. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , because it is an administrative activity that does not constitute a "project" under CEQA Guidelines section 15378, and even if it were a "project, " it would be exempt in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have a significant effect on the environment. SECTION 3 : The City Council of the City of Vernon hereby approves and authorizes the submittal of an application for CalRecycle' s 2015/2016 Used Oil Payment Program for all available funding under the California Oil Recycling Enhancement Act ("Application" ) , a copy of which is attached hereto as Exhibit A. SECTION 4 : The City Council of the City of Vernon hereby authorizes the execution of the Application by the Director of Health & Environmental Control on behalf of the City of Vernon and hereby authorizes the Director of Health & Environmental Control to execute any and all documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary for the purposes of securing funds for, and on behalf of, the City of Vernon and to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this - 2 - Resolution and the actions herein approved or authorized. SECTION 5 : The City Council of the City of Vernon hereby directs the Director of Health & Environmental Control, or his designee, to submit electronically the executed Application together with a copy of this Resolution to CalRecycle. SECTION 6 : This authorization is effective for one (1) year from the date of its adoption. SECTION 7 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 16th day of June, 2015 . Name: Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian W. Byun, Veputy City Attorney 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, June 16, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 4 - I EXHIBIT A Program Requirement: Oil Payment Program Online (OPPO) 2 Local Government Oil Payment Program (LoGOPP) v3.11.0003 Authorized Use Only Home I Reports I Help I Sign Out Home>LEp.!C ition> Program Requirements HA,peilicai ion Program Requirements: City of Vernon (2015/16) Juris actions Applications Program Requirements Contacts Addresses Participating Jurisdictions Documents Annual Reports Elock Grant eports Welcome to he Application module of CalRecycle's Local Government Oil Payment Program (LoGOPP)system.You will be able to log in and out of LoGOPP to complete your application until the application due date. After the application due date,you will only be allowed to u load documents until the document due date. Please refer to the Used Oil Payment Program Guidelines for additional ocuments egarding your application. When filling tut your application, remember to do the following: • Complete i ach tab Back Edit )elete Print/Subn tit Instructions IMPORTANT Applicant must print out this document,have the Signature Authority sign it, upload signed document to the application system, and retain the original hard copy document in your cycle file. Print Applic�Lion Certification Applicai;t Information Application Checklist O✓Select Program Requirements and Provisions Statu Pending V Date pp ✓Enter/Validate Primary Contact Information Submitted: 0✓ Enter/Validate Secondary Contact Information Applicatia n 06/30/2015 Documents 07/30/2015 O✓Enter/Validate Signatory Authority Information DUI Due: O✓Enter/Validate Consultant Information Paymei t Pending V Date Paid: 0✓Enter/Validate Physical Address Statu :` O✓Enter/Validate Payment Address 0 Upload Resolution Document** R1 Enter Participating Jurisdictions As.embly 53 Perez,John A. O Upload Letter of Authorization(LOA)for each Participating I istrict: Jurisdiction ** Senate I istrict:33 Lara, Ricardo 4(Print,Sign and Upload Application Certification Upload Letter of Designation (LOD) Progran i Requirements 44 Submit Application * 1)Your U ;ed Oil Collection Program(Program) (*required to submit application, **required by document due date) must pro%ide one of the following pursuant to Public Re:ources Code(PRC)48691(a)(1)(2). Check the appropriate box. Contacts Provid�s used oil curbside collection at least once a montY NAME TYPE !EMAIL (VALIDATED e� Ensun s there is one Certified Used Oil Collection David Secondary ldleduff@ci.vernon.ca.us j6/1/2015 Cente for every 100,000 residents. LeDuff Provid:s a combination of used oil curbside Kevin (Consultant kiservC-)aol.com 6/1/2015 collect on and Ensuring Certified Used Oil collection Sales I center are available. Leonard Primary ilgrossberaCcbci.vernon.ca us!6/1/2015 Our Pi Dgram currently does not meet the GrossberalSignatory Authority! _ requir!ment pursuant to PRC 48691(a)(1)(2). page 1 of 1 Export To Excel Count: 3 CalRe;ycle staff will contact you to discuss this issue LL after z pplication submittal. Addresses 2)Your P ogram must also provide a public education component that informs the public of TYPE IADDRESS IVALIDATED locally av+ liable used oil recycling opportunities -- --- pursuant o PRC 48691(b).Check the appropriate Physical 14305 S. Santa Fe Ave. 6/1/2015 box. Payment I Vernon Our Pi)gram has a public education component that Mailin inforrr s the public of locally available used oil Page 1 of 1 Export To Excel Count: 1 recycl ig opportunities. Our Pi)gram currently does not meet the requir!ment pursuant to PRC 48691(b). CalRecycle staff v ill contact you to discuss this issue after applic, Lion submittal. https://secure.calrecycle.ca.gov/LoGOPP/Application/Details.aspx?ApplicationID=1429 6/1/2015 Program Requirement: Oil Payment Program Online (OPPO) 2 3)Are you currently participating in mediation mandated by AB 506,have you attempted to initiate such mediation or have you declared a fiscal emergency within the last 12 months?Note: The answer is for informational purposes and will not be used to determine eligibility for payment funding. Yes . No Acceptance of Oil Payment Program Provisions di Applicant acknowledges that submittal of this application constitutes acceptance of all provisions contained in the Used Oil Payment Program Guidelines Payment Options April Payment Requested: Standard payment request j October Payment Requested: Special Payment- Applicant certifies that no other Cal Recycle funds are available for programmatic activities as of June 30 of this year. Back Edit Delete Print/Submit Instructions IMPORTANT! Applicant must print out this document, have the Signature Authority sign it, upload signed document to the application system, and retain the original hard copy document in your cycle file. Print Application Certification created by:leonard grossberg 6/1/2015 2:53 PM Last Updated by:leonard grossberg 6/1/2015 2:53 PM Local Government Oil Payment Program(LoGOPP) httl)s•//secure caIrecycle.ca.ciov/LoGOPP/ Contact: Grant Assistance(916)324-8867 https://secure.calrecycle.ca.gov/LoGOPP/Application/Details.aspx?ApplicationID=1429 6/1/2015 CRIBecycle Used Oil Payment Program Applicationi City of Vernon Fiscal Year: 2015/16 Cycle: OPP6 Program;Requirements Summary 1) Public Resources Code 48691(a)(1)(2) Ensures there is one Certified Used Oil Collection Center for every 100,000 residents. 2) Public Resources Code 48691(b) Our program has a public education component that informs the public of locally available used oil recycling opportunities. 3)Are you currently participating in mediation mandated by A13506, have attempted to initiate such mediation or have you declared a fiscal emergency within the last 12 months? No Acceptance of Used Oil Payment Program Provisions Applicant acknowledges that submittal of this application constitutes acceptance of all provisions as contained in the Used Oil Payment Program Guidelines.The Guidelines document is available at: http://www.calrecycle.ca.gov/UsedOiI/LGPayments/ Payment Information Payment Option: October Payment Requested:Special Payment-Applicant certifies that no other CalRecycle funds are available for programatic activities as of June 30 of this year. Payment Address: Health Dept: Attn. Leonard Grossberg ,4305 S.Santa Fe Ave.,Vernon, CA 90058 Contact Type Name Title Consultant Kevin Sales Principal Primary Leonard Grossberg Director Signatory Authority Secondary David LeDuff Chief Deputy Director Document Type Date* Title Resolution Pending Upload Application Certification Pending Upload Letter of Designation(LOD) Pending Upload Document Due Date:07/30/2015 Participant Jurisdiction, Document Type Date Penalty of Perjury Statement: "I certify under penalty of perjury, under the laws of the State of California that I am authorized to sign this application on behalf 0f Applicant,that I have read the Used Oil Payment Guidelines and that to the best of my knowledge and belief that i mation provide in t s Application' true and correct." X Signature of Signature Authority(as authorized in esolution)or Date Autho�rized Designee(as authorized in Letter of Designation) + Print Name Print Title IMPORTANT!Applicant must print out this page,obtain Signature of Signature Authority, upload signed document to the LoGOPP system,and retain the original document in Applicant's cycle file. City of Vernon Printed:6/1/2015 RECEIVED M M JUN 11 2015 .i Is, I"0Ja CITY ADMINISTRATION CITYCI.�RK'S( FICE M STAFF REPORT 1Kr- HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Leonard Grossberg,Director/Health Officer L �� RE: Recommend Approval of License and Support Agreement with Decade Software Company, LLC for Environmental Health Software and Related Services Staff Recommendation: A. Find that merely making recommendations to the City Council or to City Staff do not constitute actions subject to the California Environmental Quality Act(CEQA), and therefore such actions are exempt pursuant to CEQA Guidelines section 15061 (b)(3),the general rule that CEQA only applies to projects that may have an effect on the environment. B. Recommend that the City Council approve the License and Support agreement with Decade Software Company, LLC for July 1, 2015 through June 30, 2016, in an amount not to exceed$17,898.00. Background: Since 2001, our department has utilized Envision, an environmental health management software system developed by Decade Software Company, LLC ("Decade") to manage and track inspection and health permit fee data. For example, we use the Envision system to invoice and collect over $600,000.00 in health permit fees each year. The City's use of the Envision software is authorized under an annual license and software agreement with Decade. Our department continues to be very satisfied with the services and software Decade is providing. Decade has forwarded a new License and Support Agreement Renewal (attached) that extends the term for another year (July 1, 2015 through June 30, 2016). This is the same contract that we have had in place for several years. The agreement was approved to form by the City Attorney. As the yearly amount is less than $25,000, no competitive bidding or competitive selection is required under the Competitive Bidding and Purchasing Ordinance. City Council approval is required because Decade declined to enter into a standard purchase order contract, and Decade's form of contract differs from the approved form. Fiscal Impact• This year's agreement fee amount of$17,898.00 is the same as last year's fee. Sufficient funds have been budgeted in the FY 2015-2016 budget. Attachment 1-Original Decade Contract Agreement 9cLG:MyDoes/Z/Health Dept/Staff Reports/Memo to City Council for Decade agreement 2015.doc ?<!,� DECADE` 4604ioo software company Trusted to do more. I I Decade License and Support Agreement City of Vernon Health & Environmental Control Department Agreement Number 1091 -2015 Revision 1 e 0 05/07/2015 Signed contract must be returned, to Decade by Client, within 30 days of receipt. In the event signed contract is not received by Decade within 30 days of Client receipt, prices and terms contained herein are subject to increase. Contents 1. Definitions..................................................................................................................................................................................u 2. License......................................................................................................................................................................................2 3. Ownership.................................................................................................................................................................................3 4. Prices,Adjustments,and Taxes.................................................................................................................................................4 u aupportGomxmv-------------------------------------------------------.o u memvwmovveredbymisunonooandGupportFeo-------------------------------------'n z vvunonty and Limitation of Decade's Liability.............................................................................................................................7 n. ommngoispumRauouoon--------------------------------------------------'o 9. Client Responsibilities..............................................................................................................................................................1n 10. vorsionmmmouuleupQrauoo------------------------------------------------.10 11. Early Termination.....................................................................................................................................................................11 12. Actions Upon Termination........................................................................................................................................................11 13. Decade Staff.--------------------------------------------------------'11 14. Access m Client Systems........................................................................................................................................................11 15. Notice......................................................................................................................................................................................11 16. General.----------------------------------------------------------'12 17. Acceptance vf Agreement........................................................................................................................................................10 Appendix A. Volumes,Prices,and Payment Schedule for License Fees..............................................................................1* xpponmxa. Dates and Term...............................................................................................................................................10 apponmxc. Professional Services Rates............................................................................................................................17 Appendixu Third Party Software.......................................................................................................................................1e Apponmxe. Microsoft SQL Server.......................................................................................................................................1e / ' | | License and Support Agreement 1 Decade Software Company, LLC LICENSE AND SUPPORT AGREEMENT THE AGREEMENT made by and between DECADE SOFTWARE COMPANY,LLC. ("Decade")with principal place of business at 1195 West Shaw Avenue,Fresno,California 93711,and the City of Vernon, a California charter city and municipal corporation(hereinafter"City or"Client),on behalf of the City's Health and Environmental Control Department, with principal place of business at 4305 Santa Fe Avenue, Vernon,California 90058. WHEREAS Decade is the developer and owner of a certain set of software products marketed using the trade name EnvisionConnect; AND WHEREAS Client desires to obtain from Decade a revocable,non-exclusive,non-sub licensable and non-transferable license to use Decade's Licensed Programs and services; NOW THEREFORE this Agreement witnesses that for good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,and the mutual promises herein,the parties agree as follows: Appendices The following appendices are attached to form part of this Agreement: Appendix Description Appendix A Volumes,Prices,and Payment Schedule for License Fees Appendix B Dates and Term Appendix C Professional Services Rates Appendix D Third Party Software Appendix E Microsoft SQL Server In the event of a conflict between the main body of the Agreement and an Appendix to the Agreement, the terms of the Appendix shall prevail. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 2 Decade Software Company, LLC I . Definitions 1.1. Agreement. The agreement set forth in this document 1.2. Licensed Materials.The term "Licensed Materials" shall mean computer programs, in object form, and all related documentation and materials provided to Client under the terms of this Agreement. Licensed Materials shall not include Source Code. 1.3. Licensed Programs.The term "Licensed Programs" shall mean the object code version of the software,as well as all updates,enhancements and releases. Licensed Programs are a sub-set of the Licensed Materials. 1.4. Decade Source Code. The term "Decade Source Code" shall mean a full source language statement of the programs owned by Decade used to prepare the Licensed Programs,including any updates, enhancements,revisions and modifications thereto that are provided to Client under this Agreement. Decade Source Code shall not include any source language statements for any portion of the Licensed Programs owned by or sublicensed from third parties. 1.5. Effective Date.The term "Effective Date" shall mean a specific mutually agreed upon date as defined in Appendix B,Dates and Term. 1.6. Anniversary Date. The term "Anniversary Date" shall mean a specific mutually agreed upon date as defined in Appendix B,Dates and Tenn. 1.7. Version.The term "Version" shall mean an issue of Licensed Programs,which has been made available to the Client. 1.8. Professional Service Request(PSR).The term "PSR" shall mean the document and process required to authorize professional services which are outside of those agreed to. 1.9. EnvisionConnect. The term EnvisionConnect shall mean the trade name for the Licensed Programs provided under this Agreement as described in Appendix A. 1.10. Inspector. The term"Inspector"shall mean a Client staff member whose job function requires fifty percent(50%)or more time is spent conducting field activities such as inspections or investigations. 2. License 2.1. Decade hereby grants to Client,and Client hereby accepts from Decade,subject to the terms and conditions of this Agreement,a revocable,non-exclusive,non-sub licensable and non-transferable license("License")to use the Licensed Materials solely for Client's own use.The License shall be restricted for use with one(1)production server database with a single set of master code tables. 2.2. The License also authorizes Client to maintain a back up copy of the Licensed Programs for use with databases for back up and testing purposes only.Client agrees to maintain appropriate records on the quantity and location of all such copies,and produce same on demand by Decade.Client City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 3 Decade Software Company, LLC agrees to include the Decade copyright notice on all copies,in whole or in part,in any form. Client agrees to receive prior written approval from Decade before copying any portion of the Licensed Programs for any other purpose,which Decade may,at its sole and unfettered discretion,grant or not grant. 2.3. Client may not assign, sublicense or otherwise transfer, in whole or in part,the License,this Agreement or any of its rights or obligations hereunder,whether voluntarily,by operation of law or otherwise,without the prior written consent of Decade. 2.4. Client agrees to not allow access to the Licensed Programs to any third party without written permission from Decade. 3. Ownership 3.1. Decade is the lawful owner or licensee of all proprietary rights whatsoever in the Licensed Materials including any changes,additions, and enhancements in the form of new or partial programs or documentation, but not as to limit the generality thereof,all copyright interests in the Licensed Materials.All copies of the Licensed Materials provided to,or reproduced by,the Client pursuant to this Agreement are,and remain the property of Decade.No rights in the Licensed Materials are granted to anyone other than those set forth in this Agreement.The Client shall use its commercially reasonable best efforts to prevent any violations of the Decade's property rights in the Licensed Materials and shall,under no circumstances, sell, lease,sublease,sublicense,assign, barter, encumber,or otherwise transfer the Licensed Materials or use the Licensed Materials for the processing of data for others, except as provided herein. 3.2. The Client shall have no right to modify,enhance or otherwise change the Licensed Materials in any way without the prior written consent of Decade,however the Client shall be entitled to merge the Licensed Materials into other materials to form a system, provided that upon termination of the License granted by this Agreement,the Licensed Materials will be completely removed from the system and treated as though permission to merge had never been granted. Use of the Licensed Materials in a system shall remain subject to all other terms of this Agreement. 3.3. The Licensed Materials and all other data or materials supplied by Decade to Client are confidential and proprietary to Decade,protected by law and of substantial value to Decade,and their use and disclosure must be carefully and continuously controlled; 3.4. The Licensed Materials and the Source Code are protected by the Copyright Laws of the United States. 3.5. All logos,trademarks and trade names of Decade are proprietary to Decade and may only be used as authorized in writing by Decade. 3.6. Client shall keep all property of Decade free and clear of all claims, liens and encumbrances. 3.7. Client shall notify Decade immediately of the unauthorized possession,use or knowledge of any item supplied to Client pursuant of this Agreement. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 4 Decade Software Company, LLC 3.8. In the event Client breaches or attempts to breach any of the provisions of this Section 3,Decade shall have the right,in addition to such other remedies which may be available to it,to injunctive relief enjoining such breach or attempt to breach, it being acknowledged that legal remedies are inadequate. The provisions of this Section 3 shall survive termination of this Agreement. 4. Prices, Adjustments, and Taxes 4.1. Prices for license fees and professional services are contained in Appendices A and C. The original license and annual fees are based on the number of Inspectors specified in Appendix A. 4.2. Client agrees to pay for additional Inspectors as they are added at Decade's then prevailing license and maintenance fees. 4.3. After the initial term and for successive terms thereafter,Decade will notify Client at least sixty(60) days prior to the end of the then current term of Decade's intent to increase prices for the successive term. 4.4. Any tax, such as sales and use taxes, exclusive of property and income taxes,that Decade is required to collect or pay based upon the sale or delivery of products or services under this Agreement shall be paid by Client to Decade,or Client shall pay directly to the taxing agency with proof of payment provided to Decade.This obligation extends retroactively if so assessed by a taxing agency. 4.5. If Client is using the Licensed Programs in California,and receives the Licensed Programs on tangible personal property(for example floppy disks, magnetic tape,Zip disk,CD-ROM,or any other medium by which the Licensed Programs are temporarily stored to effect transfer to Client's computer)then the full license and support fee,as well as training and conversion fees,are subject to California sales and use tax.The definition of transfer is the leaving behind of such tangible personal property. However, if the Licensed Programs are received by Client over communication lines,via the Internet,a bulletin board service or through a direct connection between Client and Decade computers,the license and support,training,and conversion fees are not subject to sales and use tax. In California,all parts and supplies are subject to sales and use tax,and hourly-based professional services,other than training and file conversion for the Licensed Programs,are not. 4.6. If Client is using the Licensed Programs in a state other than California then Client is responsible for knowing the sales and use tax rules of that state. 4.7. Decade will assess and Client agrees to pay a late charge of 1 '/2%per month,or the highest amount allowed by law,for each month a payment is 30 days past due. 4.8. Decade reserves the right to withhold services for non-payment of fees. 4.9. Section 6 lists products and services that are not included in the license and support fee.Fees for Client's use of these items are due and payable when invoiced. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 5 Decade Software Company, LLC 5. Support Services The following services are included in the license and support fees: 5.1. Telephone Support Decade provides telephone support via a toll free number for Client's usability questions and/or problem resolution. Support is provided during Decade's regular business hours(8:00 A.M.to 5:00 P.M.,Pacific Time, Monday through Friday,with Federal and State holidays excluded.) Holiday's Include: New Year's Day Martin Luther King Jr.Birthday Presidents' Day Memorial Day Independence Day Labor Day Thanksgiving Day The Friday after Thanksgiving Christmas Eve Christmas Day Issues can be reported 24-hours a day via Decade's web-based incident reporting system,e-mail, fax or telephone.Decade supports both the applications it develops and provides first-tier support the database backend on which these applications run. 5.2. Web-based Support All clients have 24-hour access to Decade's web resources. • Incident Reporting • Resolution Reporting • System Documentation • "Did You Know" Articles • Online Support Forms 5.3. Licensed Programs Decade will provide Licensed Programs maintenance,which includes Maintenance defect fixes,and any other required modifications to keep the Licensed Programs in conformance with the specifications contained in the then current Decade Licensed Materials.Decade will amend the specifications only to remove documentation errors,provide consistency of interpretation or describe improvements to the Licensed Programs. Decade will correct any error or malfunction in the Licensed Programs that prevents them from operating in conformance with the then current Licensed Materials,or Decade will provide a commercially reasonable alternative that will conform to the then current Licensed Materials. If Client's system is inoperable due to a reproducible error or malfunction,and Client is using the current release of the Licensed Programs,Decade will provide continuous effort to correct the error or malfunction. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 6 Decade Software Company, LLC 5.4. User Community User Groups: User group meetings occur on a frequency determined by Tools the user community. These meetings allow users to share ideas, workflows,etc. Client may send representatives to any user group meeting conducted by Decade clients. Decade's clients use a Community Web Site to share information such as workflows for the Licensed Programs,environmental regulation workflows,user-customized reports,and general questions and answers. Clients have the freedom to upload/download useful reports, scripts, and other files at times most convenient to them. In addition,they can join groups,be automatically notified when updates are made to their group, when questions are posed by others,when responses are provided to questions,etc. 5.5. Refresher Training There will be no charge for refresher training conducted at Decade's office on mutually agreeable dates, if the material was covered and the attendee(s)Attended Client's initial training. Refresher training does not include training for new Licensed Programs or Client staff that have not been trained before,which are billable services. 5.6. Client Relationship Decade utilizes a Client Relationship Management(CRM)software Management application that enables Decade to manage every aspect of our relationship with the client. Client information acquired from sales, marketing,client service,and support is captured and stored in a centralized database to improve client satisfaction. Decade will not release any Client information without prior authorization from the Client. I I 5.7. Service Modification Decade has the right to eliminate,add to,or modify these services. 6. Items Not Covered by this License and Support Fee 6.1. The following services will be provided on a fee basis.Appendix A contains prices for license fees, and all services that are agreed upon as a condition of this Agreement. Services not specifically included can be obtained from Decade after completion and approval of a Professional Service Request(PSR)at the rates identified in Appendix C. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 7 Decade Software Company, LLC 6.2. Support Initiated Decade's normal working hours are 8:00 A.M.to 5:OO P.M.,Pacific Time, Outside Normal Monday through Friday,with Federal and State holidays excluded. If Working Hours Client requires or initiates service outside these hours,Client will pay for such support at Decade's prevailing rates. Holidays Include New Year's Day Martin Luther King Jr.Birthday Presidents' Day Memorial Day Independence Day Labor Day Thanksgiving Day The Friday after Thanksgiving Christmas Eve Christmas Day 6.3. Data Conversion 6.4. Data Correction or Unless caused by Decade's negligence while working on Client's system. Restoration 6.5. Custom Programming 6.6. Software Implementation 6.7. Initial and New Staff Training 6.8. Client will reimburse Decade for out-of-pocket costs expended on Client's behalf,unless such costs are caused by Decade's negligence. These can include travel and per diem,parts and supplies, media and reproduction,and long distance calls initiated from Decade to Client's system.Decade will obtain Client's prior approval before expending more than$100.00 per incident. 7. Warranty and Limitation of Decade's Liability 7.1. Decade warrants that the media used to deliver the Licensed Materials to Client is free from mechanical or recording defects,and if such defects are found,Decade will immediately replace the defective media. 7.2. Decade warrants that it is the owner or licensee of the Licensed Materials and that it has the right to grant the License granted hereunder.Decade agrees to defend Client against,and pay the amount of any adverse final judgment(or settlement to which Decade consents)resulting from third party claim(s)(hereinafter"Indemnified Claims")that the Licensed Materials infringe any copyright or patent; provided Decade is notified promptly in writing of the Indemnified Claims and has sole control over its defense or settlement,and Client provides reasonable assistance in defense of same. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 8 Decade Software Company, LLC 7.3. `Decade warrants that the Licensed Programs will perform substantially in accordance with its then- current Licensed Materials,at no additional cost to Client,provided that:(a)the Licensed Programs have not been modified,changed or altered by anyone other than Decade or as authorized by Decade in writing;(b)Client is operating the then-current version of the Licensed Programs; (c) Client's computer system is in good operating order and is installed in a suitable operating environment;(d)Client's computer system configuration used in the operation of the Licensed Programs meets Decade's approved specifications;(e)the error or defect is not caused by Client or its agents,employees or contractors; (f)Client promptly notifies Decade of the error or defect when it is discovered; (g)all fees then due to Decade have been paid;and(h)Client is not otherwise in breach of its obligations under this Agreement. In such event,Decade shall use its commercially reasonable efforts to cause the Licensed Programs to perform substantially in accordance with its then-current Licensed Materials as soon as reasonably practicable under the circumstances. 7.4. If Client notifies Decade of such error or defect and,after investigation by Decade,Decade determines that such error or defect occurred as a result of Client not being in compliance with one or more of the reasons listed in Section 7.3 above,then Client shall reimburse Decade at Decade's then prevailing rates for all costs incurred in investigating such error or defect. 7.5. EXCEPT AS SPECIFICALLY SET FORTH HEREIN,THERE ARE NO OTHER WARRANTIES OF ANY KIND,WHETHER EXPRESS OR IMPLIED,WITH RESPECT TO THE LICENSED PROGRAMS,THE LICENSED MATERIALS OR ANY UPDATES,ENHANCEMENTS OR RELEASES THERETO,OR ANY OTHER SERVICES OR GOODS PROVIDED BY DECADE TO CLIENT IN CONNECTION WITH THIS AGREEMENT,INCLUDING WITHOUT LIMITATION ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.AS AN EXPRESS LIMITATION OF LIABILITY, CLIENT'S SOLE AND EXCLUSIVE REMEDIES AND DECADE'S ONLY OBLIGATIONS UNDER THE WARRANTIES SET FORTH ABOVE AND THIS AGREEMENT IS TO CAUSE THE LICENSED PROGRAMS TO OPERATE SUBSTANTIALLY IN ACCORDANCE WITH DECADE'S THEN-CURRENT LICENSED MATERIALS OR TO CORRECT THE THEN- CURRENT LICENSED MATERIALS AT DECADE'S SOLE AND UNFETTERED DISCRETION. 7.6. DECADE DOES NOT WARRANT THAT THE FUNCTIONS CONTAINED IN THE LICENSED PROGRAMS SHALL MEET CLIENT'S REQUIREMENTS OR SHALL OPERATE IN COMBINATION WITH OTHER SOFTWARE OR SYSTEMS WHICH CLIENT SELECTS FOR USE,OR THAT THE OPERATION OF THE LICENSED PROGRAMS SHALL BE UNINTERRUPTED OR ERROR FREE,OR THAT ALL ERRORS AND DEFECTS HAVE BEEN IDENTIFIED AND CORRECTED BY DECADE. 7.7. DECADE SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL,PUNITIVE, EXEMPLARY, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER SUFFERED OR INCURRED BY CLIENT AS A CONSEQUENCE OF THE USE OR PERFORMANCE OF THE LICENSED PROGRAMS OR OTHERWISE,EVEN IF DECADE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN ANY EVENT, UNDER NO CIRCUMSTANCES SHALL DECADE BE LIABLE FOR ANY LOSS,COST, EXPENSE OR DAMAGE TO CLIENT IN AN AMOUNT EXCEEDING THE SUM OF THE INITIAL LICENSE FEE ACTUALLY PAID BY CLIENT TO DECADE UNDER THIS AGREEMENT, WHETHER ARISING AS A RESULT OF: (A)ANY BREACH OF THIS AGREEMENT BY DECADE;(B)ANY ACT OR FAILURE TO ACT OF DECADE;OR(C) ANY CLAIM MADE AGAINST CLIENT BY ANY OTHER PARTY,EVEN IF DECADE HAS BEEN ADVISED OF THE CLAIM OR POTENTIAL CLAIM.CLIENT AGREES THAT IT City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement g Decade Software Company, LLC SHALL NOT ASSERT ANY CLAIMS AGAINST DECADE BASED ON ANY THEORY OF STRICT LIABILITY. 7.8. General Indemnification 7.8.1. Any obligation by Decade to defend or indemnify Client shall be conditioned per Client doing all of the following: 7.8.1.1. Notifying Decade of the claims,damages, losses and/or expenses in writing within a reasonable period of time,such that Decade suffers no prejudice to its rights; 7.8.1.2. Giving Decade the right to control and direct the defense and settlement of that action; 7.8.1.3. Making no compromise,settlement or admission of liability; and 7.8.1.4. Providing reasonable assistance and cooperates in the defense of that action. 7.8.2. Decade's obligations as stated in this section will not apply to any claim, suit or proceeding to the extent it is based on any of the following: 7.8.2.1. Any modification of the EnvisionConnect software other than by Decade,or the combination of the software with non-Decade software or any hardware that fails to comply with the EnvisionConnect hardware and software requirements; 7.8.2.2. Client's use of other than the latest release of the EnvisionConnect software if Client is informed that a claim, suit or proceeding can be avoided by use of the latest release; 7.8.2.3. Any use of the EnvisionConnect software not authorized by this Agreement;or 7.8.2.4. Any modification or derivative work made by Decade based on Client's instructions, designs or specifications. 8. Binding Dispute Resolution The parties shall use reasonable efforts to amicably settle all disputes,controversies, or differences,which may arise between them("Dispute"). If no resolution is reached,the parties shall submit the Dispute to a mutually acceptable mediator, initiated by written demand of one party served on the other,and if the mediator determines that the Dispute cannot be resolved by mediation,then the Dispute shall be submitted to binding arbitration in accordance with the rules and regulations of the American Arbitration Association. Arbitration shall take place in Los Angeles,California. The arbitration award shall be supported by written conclusions of law and fact. Punitive damages shall not be permitted under any circumstances. The existence of the dispute,the dispute resolution process and the arbitrators' award shall be maintained confidential,provided that the arbitrators' award may be entered as a final judgment in any court in Los Angeles County, California having jurisdiction. The provisions of this Section 8 shall not apply to those instances in which either party is entitled to seek injunctive relief pursuant to the terms of this Agreement and desires to do so. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 10 Decade Software Company, LLC 9. Client Responsibilities Client is responsible for the following: 9.1. Timely payment of Decade invoices. 9.2. Provisions of a test system, and use of said system,prior to installing any enhancements,Versions, or Licensed Programs. This shall include testing of any changes made by the Client, including but not limited to: • Reports • Page Layouts • Support Codes • Configurations 9.3. Provision of appropriate operating environment for Client's computer system, Client employees, and Decade staff when at Client location. 9.4. Provision of knowledgeable,competent operators with an understanding of Client's operations. 9.5. Scheduled training to properly prepare Client's staff to use Licensed Programs. 9.6. Backing up files and Licensed Programs daily,or whenever they change,and keeping them in a secure place. 9.7. Notifying Decade of a problem as soon it appears. 10. Version and Module Upgrades 10.1. Decade will periodically make Licensed Programs upgrades and enhancements available to Client. Decade will provide the necessary instructions and software tools so Client can install the upgrades and modifications. 10.2. Decade will test each new Version in beta prior to releasing the software to Client. Client will be provided a test environment in which new Versions will be installed prior to the release of a production Version. 10.3. Client will maintain its system at the current release level of the Licensed Programs.Ninety(90) days after the release of a new Licensed Programs Version,Decade will not be obligated to maintain prior Versions. Decade will have the sole discretion to decide if new Licensed Programs are a no charge upgrade,a no charge enhancement,or a billable offering. Billable offerings are optional,and Client will not be required to purchase them to maintain the current release level. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 11 Decade Software Company, LLC 11 . Early Termination 11.1 Either party may terminate this Agreement for a material breach of this Agreement, provided that the party in default has not cured or corrected such breach within thirty(30)days of receiving notice of such breach from the non-breaching party. Such termination may be in addition to any other rights and remedies the terminating party may have at law or inequity. i i 12. Actions Upon Termination 12.1. Client will cease using Licensed Materials immediately upon termination. 12.2. Within thirty(30)days after termination for any reason,Client will furnish Decade an affidavit certifying that the original and all copies,in whole or in part, of the Licensed Materials have been removed from Client's hardware and either returned to Decade or destroyed by Client. 12.3. Client will pay all amounts due Decade. 13. Decade Staff 13.1. Client shall not attempt to hire any current or former Decade staff member without prior written consent from Decade. 14. Access to Client Systems 14.1. Client agrees to install such telephone lines,communications software, and communications equipment necessary to allow remote access to Client's computer system. This access will be used to provide technical support and problem resolution. Client shall install its own security measures to prevent unauthorized access. Client shall be responsible for all expenses associated with obtaining and installing such telephone lines and communication equipment.Decade shall provide Client with the appropriate communication software at no additional cost. In the event Decade has to access Client's system remotely,Client shall reimburse Decade for the cost of the telephone call. 15. Notice 15.1. Any notice,request,demand,consent,or other communications provided or permitted hereunder shall be in writing and given by personal delivery,transmitted by facsimile,or sent by ordinary mail, postage paid, addressed to the party for which it is intended at its address as follows: City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 12 Decade Software Company, LLC For Decade: Attention:Darryl Booth 1195 West Shaw Avenue Fresno,CA 93711 Phone: 800-233-9847 ext.702 Fax: 559-222-1365 E-mail: darrylboothgdecadesoftware.com For Client: Attention:Leonard Grossberg Director/Health Officer 4305 Santa Fe Ave. Vernon,CA 90058 Phone: (323)583-8811 ext. 231 E-mail: 1 y-rossbergga,ci.vernon.ca.us 16. General 16.1. Any clause of this Agreement found to be unenforceable shall be severed from this Agreement and the remainder of the Agreement shall remain in full force and effect. 16.2. Any waiver of any clause of this Agreement shall not constitute a subsequent waiver of that clause or any other clause. Failure or delay of either party to enforce compliance with any clause shall not constitute a waiver of such clause. 16.3. This Agreement shall be governed by California law,and the court of competent jurisdiction shall be in Los Angeles,California. 16.4. In the event litigation is required to enforce performance of this Agreement,the prevailing party shall be reimbursed the costs of enforcement, including,but not limited to attorney fees and costs, witness fees and costs, and court costs. 16.5. This Agreement replaces all other prior agreements,orally or in writing,relating to the subject matter contained herein, including any made by other parties such as distributors,consultants, dealers or resellers.This Agreement can only be modified in writing as approved by authorized signatories of both parties. 16.6. This Agreement is binding upon and shall inure to the benefit of the legal successors and assigns of the parties. 16.7. Unless otherwise provided herein,Decade may utilize third parties to provide certain services, products or licenses. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 13 Decade Software Company, LLC - 17. Acceptance of Agreement Decade and Client have caused this Agreement to be executed by their duly authorized representatives on the respective dates entered below: City of Vernon ATTEST: By William Fox,Finance Director Ana Barcia Deputy City Clerk APPROVED AS TO FORM: Zaynah N.Moussa,City Attorney The person signing this Agreement on behalf of the Client warrants that they have read and understand all the terms and conditions contained herein,are authorized to sign on behalf of the Client. Decade Software Company, LLC Darryl Booth,President Date Agreed City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 14 Decade Software Company, LLC Appendix A. Volumes, Prices, and Payment Schedule for License Fees A.1 Number of Inspectors Inspectors and Program Areas Numbers Number of Inspectors 6 Number of Inspectors Using EnvisionConnect Remote 5 A.2 Licensed Programs EnvisionConnect—Licensed Programs Included in this Agreement: EnvisionConnect ® EnvisionConnect Remote Use ® CERS EDT ❑ Extender El Batch Payments Import Tool (BPI) PA to CUPA Transfer Process Mobile Vector Control Management I A.3 EnvisionConnect Prices A.3.1 Prices Ck Annual License and Support Fees Annual Cost ® EnvisionConnect $8,802.00 ® EnvisionConnect Remote Use $7,656.00 ® CERS EDT $1,440.00 Total $17,898.00 Total Recurring Fees $17,898.00 These prices may be increased annually on the anniversary Date,upon at least sixty(60) days prior notice to client. AA Payment Schedule All invoices are payable net thirty(30)days. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 15 Decade Software Company,LLC A.5 Payment Frequency Second and successive Annual License Renewal Fees,may be paid in advance annually or monthly, Client's choice. Ck Payment Frequency ® Annually ❑ Quarterly ❑ Monthly A.6 Client Taxes Tax Rate Exempt Exemption Number A.7 Client Contact for Billing Issues Client Contact Person for Billing Issues Leonard Grossberg Director/Health Officer 4305 Santa Fe Ave. Vernon, CA 90058 Phone: (323) 583-8811 Ext. 231 E-mail: lyrossbery-@ci.vernon.ca.us City of Vernon Revision: 1.0 Date: 05/07/2015 License-and Support Agreement 16 Decade Software Company, LLC Appendix B. Dates and Term This Agreement shall become effective as specified below("Effective Date")or when Decade provides the Licensed Programs or services hereunder, whichever is earlier. The month and day of the Effective Date shall determine the anniversary date(hereinafter"Anniversary Date"). This Agreement shall have a term of one year,07/01/15 to 06/30/16. Milestone Summary Milestone Date Effective Date: 07/01/15 Anniversary Date 07/01/15 Agreement Term Begins 07/01/15 Agreement Term Ends 06/30/16 City of Vernon Revision: 1.0 Date: 05/07/2015 I I License and Support Agreement 17 Decade Software Company,,LLC Appendix C. Professional Services Rates Any services requested outside of those listed in Section 5 Support Services will require authorization through a Professional Service Requests(PSR)signed by both parties. The following rates will apply for the listed professional services. Item Rate Per Unit Professional Services • Custom Programming $126.00 Hour • Consultation $126.00 Hour • Report Development $126.00 Hour Training • Training at Client Facility- Maximum $1,470.00 Day of 6 participants • Training at Client Facility- Maximum $2,205.00 Day of 15 participants • Training at Decade Facility $1,470.00 Day • Training Online Using WebEx $183.50 Hour Support • Phone Support Outside Normal $189.00 Hour Service Hours • Third Party Support $126.00 Hour Travel Expenses • An estimate of per diem travel expenses will be provided at the time the PSR is created. These prices may be increased annually on the Anniversary Date, upon at least sixty(60)days prior notice to client. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 18 Decade Software Company, LLC Appendix D. Third Party Software D.1 SAP Crystal Reports Crystal Reports is a database report designer and viewer owned by SAP. Decade utilizes Crystal Reports to design"canned"and custom reports that are later distributed with the Licensed Materials. The Licensed Materials includes a server-side report generation component. This is allowed under section 4.2.5 of the Crystal Reports Standard, Professional, and Developer License Agreement. Use of the server-side report generation component within the Licensed Materials is subject to the following terms. D.1.1 Client agrees not to modify,disassemble,decompile,translate,adapt or reverse-engineer the Runtime Product or the report file(.RPT)format; D.1.2 Client agrees not to distribute the Runtime Product to any third party; D.1.3 Client agrees not to use the Runtime Product to create for distribution a product that is generally competitive with SAP product offerings; D.1.4 Client agrees not to use the Runtime Product to create for distribution a product that converts the report file(.RPT)format to an alternative report file format used by any general-purpose report writing,data analysis or report delivery product that is not the property of SAP; D.1.5 Client agrees not to use the Runtime Product on a rental or timesharing basis or to operate a service bureau facility for the benefit of third-parties; D.1.6 SAP AND ITS SUPPLIERS DISCLAIM ALL WARRANTIES,EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,AND NONINFRINGEMENT OF THIRD PARTY RIGHTS. SAP AND ITS SUPPLIERS SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY DIRECT,INDIRECT,CONSEQUENTIAL, INCIDENTAL,PUNITIVE,COVER OR OTHER DAMAGES ARISING UNDER THIS AGREEMENT OR IN CONNECTION WITH THE SOFTWARE. City of Vernon Revision: 1.0 Date: 05/07/2015 License and Support Agreement 19 Decade Software Company, LLC Appendix E. Microsoft SQL Server E.1 SQL Server Microsoft SQL Server 2008 Standard Edition(or higher)or Microsoft SQL Server 2012 Standard Edition (or higher)is a database management system required by the Licensed Materials. i I City of Vernon Revision: 1.0 Date: 05/07/2015 og E© :CEIV RE JUN 1 0 RECEIVED 2015 ��'� R e� gRy LY,M�J JUN 0 4 2015 O11(CI.ERK'S OFFICE STAFF REPORT CITY ADMINISTRATION HUMAN RESOURCES DEPARTMENT DATE: June 16,2015 TO: Honorable Mayor and City Council � A FROM: Teresa McAllister,Director of Human Resources Department RE: Adoption of City of Vernon Personnel Policies and Procedures, Terms of Employment (I-1) (revised) and Salary Plan Administration II-3 (revised) Recommendation A. Find that approval of the proposed personnel policy and procedures in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt the attached Personnel Policy and Procedures, Terms of Employment I-1 (revised), Salary Plan Administration 1I-3 (revised) and incorporate it into the Personnel Policies and Procedures Manual; and C. Authorize the City Administrator and the Director of Human Resources to execute and distribute the above-referenced policy to all employees. Background The Human Resources Department is responsible for maintaining and managing the City's Personnel Policies and Procedures. Prior to 2013, a comprehensive review of the Personnel Policies and Procedures had not been conducted in over twenty (20) years. In line with the City's good governance reforms, the City commenced and is continuing its comprehensive review of its policies and procedures, including the incorporation of new policies and programs designed to benefit the City, its employees, and surrounding communities. To ensure a more efficient and effective method in maintaining and managing the City's personnel policies and procedures, the City Council on November 20, 2012, approved Resolution No. 2012-231 that incorporates all personnel policies into the Personnel Policies and Procedures Manual. The manual is designed to provide a uniform and consistent system for human resource administration throughout the City. In addition, the manual will provide employees with greater Page 1 of 2 clarity with respect to personnel policies, and promote effective communication among managers, supervisors, and employees. In furtherance of the City's good governance reform efforts, staff has presented the following revised policy for consideration by the City Council and adoption into the Personnel Policies and Procedures Manual: • Terms of Employment Policy I-1 (revised)—The redline policy attached reflects the addition of the Director of Industrial Development classification approved by City Council on June 2, 2015 as part of the fiscal year 2015-2016 budget adoption. In addition the classification of Deputy City Administrator is also recommended to be added as a non-classified at-will position. • Salary Plan Administration Policy 11-3 (revised)—The redline policy attached reflects the addition of a 2.5%Notary Public Certification Premium Pay. The premium pay is consistent with similar situated employees in other employee groups and is recommended that the provision apply to similar situated employees in non-represented groups. There were no changes or impact to the wages, hours, and working conditions of the employee's represented under the City's labor associations/unions. Therefore, in accordance with the Meyers Milias-Brown Act the City is not obligated to participate in a meet and confer process with the City's labor associations regarding the changes proposed in the attached policies. Fiscal Impact An anticipated cost to implement the 2.5% Notary Public Certification Premium Pay for one (1) employee is approximately $2,590 and can be absorbed in Fiscal Year 2015-2016 Human Resources Departmental budget. Attachment(s) 1. Terms of Employment HR Policy I-1 2. Salary Plan Administration HR Policy 11-3 Page 2 of 2 City of Vernon, California Human Resources Policies and Procedures Gs�VLrtY 1t+9�� Director of Human Resources City Administrator Number:1-1 Effective Date: oeteb1. '44-4June 28, 2015 SUBJECT: TERMS OF EMPLOYMENT PURPOSE: To specify and define employment terms for uniform use and interpretation. POLICY: All full-time regular employees are considered classified employees and participate in a competitive examination process and retain a property interest in their jobs after successful completion of their probationary periods. Part-time, temporary, and full-time non-classified employees serve at the will of the appointing authority. NOW CLASSIFIED POSITIONS: The following job positions are non-classified positions. The employees in these positions serve at the will of the City Administrator, City Council or City Attorney and do not have any property interest in their jobs. A. Tem ora Employees: Employees not exempt from the Fair Labor Standards Act who are hired only for a specified, limited period of time- There is a six---month employment period limit for all temporary appointments. However, with written justification from the appointing department and City Administrator approval, an extension of no more than six months may be granted. In no event shall a temporary employee be allowed to work more than twelve (12) continuous months in the same classification unless approved by the City Administrator due to special circumstances. This limitation of the term of employment also applies to dual classifications. These employees are eligible for overtime but are not eligible for any other benefits not required law. B. Part-Time Employees: Employees who work a maximum of 1000 hours or less per fiscal year. These employees are eligible for overtime, but are not eligible for any other benefits not required by law. C. Full-Time Non-Classified Em Io ees: Employees who are regularly scheduled to work at least 40 hours per week and who do not retain property interests in their jobs. These employees are entitled to full benefits from the City. Non-Classified full time employees serve at the pleasure of the appointing authority and have no property interests in their positions, other than as may be established in an at will employment agreement approved by the City Council from time to time. A full-time non-classified position is created when it is determined by the City Administrator that the City requires a classification to perform top--level administrative, Number:1.1 Effective Date: Oeteber�21. 244, ne 28. 2015 managerial, professional and/or confidential functions with direct accountability to the appointing authority. Upon reasonable notice to affected employees, the City Administrator may create other full-time non-classified positions appropriate. No changes in the Classification Plan will be made without the approval of the City Council. NON-CLASSIFIED POSITIONS: The following positions are the established full-time Non- Classified positions of the City of Vernon: City Administrator City Attorney City Clerk Deputy City Administrator Deputy City Attorney Director of Public Works, Water and Development Services Finance Director/City Treasurer Fire Chief Director of Health & Environmental Control Human Resources Director Director of Gas & Electric Director of Industrial Development Police Chief CLASSIFIED POSITIONS: All other full-time positions within the classification system adopted by the City Council from time to time are Classified positions. These employees- are regularly scheduled to work 40 hours per week or a CEity_-approved alternative work schedule and are entitled to full benefits from the City. Classified employees have a property interest in their positions once they have satisfactorily completed their probationary periods. TYPES OF POSITIONS - A position is the basic unit of an organization within the classification system adopted by the City Council from time to time and the corresponding duties and responsibilities assigned by management that requires the full or part-time employment of one person. Specific types of positions in the City organization are: A. Regular Full-Time - A position established to provide service on a full-time, ongoing basis into the future. B. Regular Part-Time - The same as Regular Full-Time except that the work schedule involved shall not exceed 1000 hours total each fiscal year. Such work schedule may be of an irregular nature including short shifts at various times and various days of the week. C. Temporary - A position established to provide service not to exceed 1000 hours during any fiscal year. Such positions may be filled on a full-time or part-time basis. 2 Number:I-] Effective Date: Oeteber 21.2014. ne 28. 2015 TYPES OF APPOINTMENTS - An appointment is the offer, by an appointing authority and acceptance by a person eligible under City policies and laws, of a position in City employment that is made in accordance with approved policies and procedures. Specific types of appointments to positions in the City are: A. Regular Appointment (Classified Service) - An appointment made from a certified eligible list to a budgeted position and subject to successful completion of a probationary period. B. Temporary Appointment (Non-Classified Service) - An appointment to a position established for a definite length of time, for a special project that shall cease to exist at the end of a stated time, for a regularly recurring need, or to alleviate cyclical or peak work loads. Such appointment is not to exceed, on a full-time or part-time basis, 1000 work hours in a fiscal year. No benefits are provided. The City Administrator or designee may authorize the temporary appointment of a qualified individual designated by a department head to a grant---funded position or a specially budgeted project that shall exceed 1000 work hours in a fiscal year. Full benefits or mandatory benefits only may be authorized depending on the terms and conditions of the grant. C. Re ular Appointment Non-Classified Service - An appointment made by the City Administrator, or other City official designated to hire outside the classified service. Such appointments shall be made to an authorized position typically from a certified eligibility list. All appointments in this category shall be designated "at will" and subject to the terms and conditions of an at will employment agreement approved by the City Council from time to time. D. Acting/Interim Appointment-A temporary appointment of a qualified candidate made to a regular full-time or part-time position where there is no appropriate list of eligible persons, or when there is an insufficient number of persons on an appropriate list who are willing to accept appointment, and when all other recruitment measures have been exhausted. Such appointment shall expire when an eligible list has been prepared and a regular appointment made, or shall automatically expire when 1000 work hours are completed in a fiscal year. The Director of Human Resources must certify eligibility of such appointment prior to making a job offer. The City Administrator may authorize an acting appointment that exceeds 1000 work hours for an authorized leave of absence where the incumbent has reinstatement rights or for an extended recruitment. Upon reinstatement of the incumbent or hiring of an individual, the acting employee shall be returned to the position previously held. E. _Appointments Outside the Hiring Process - Where an emergency, or other temporary need exists for additional help not elsewhere addressed in this policy statement, a Department Head may, subject to the approval of the City Administrator and Director of Human Resources, implement one or more of the following hiring methods in his/hei 3 Number:I-] Effective Date: Oeteber 21, 2014June 28, 2015 1) 2 Week Emergency Direct Hire: Hire any individual considered qualified for emergency work for a period not to exceed 14 calendar days at any one time. 2) 90 Day Hire Via Temp Agency: Utilize the services of an agency supplying temporary, short_term or emergency help for a period not to exceed 90 days. 3) Contract Employment (Independent Contractors) - The practice of engaging individuals under contract for personal services may be utilized only where it has been demonstrated that an employer-employee relationship does not exist. All such contracts for personal services must be approved as to form by the City Attorney. 4 Of VET City of Vernon, California 1S�,G►y,;k"& Human Resources Policies and Procedures • �' Director of Human Resources tY tMO�� City Administrator Number:11-3 Effective Date: 0612812015 SUBJECT: SALARY PLAN ADMINISTRATION PURPOSE: To describe the Salary Plan and provide basic guidelines for Plan administration. DEFINITION: The term Salary Plan includes the City pay schedules and the means by which pay is adjusted, such as merit, promotional and reclassification increases, demotional decreases and differential payments. Computation of Pay: The following formulas shall be used when determining salary rates identified in the salary schedules: Fifty-six (56) Hour Week Personnel (a) The stated "monthly rate" multiplied by 12 equals the "annual rate" (b) The "annual rate" divided by 2,912 equals the "hourly rate" (c) The "hourly rate" multiplied by 112 equals the "biweekly rate" Fort 40 Hour Shift Personnel (a) The stated "monthly rate" multiplied by 12 equals the "annual rate" (b) The "annual rate" divided by 2080 equals the "hourly rate" (c) The "annual rate" divided by 26 equals the "biweekly rate" 1 Number: H-3 Effective Date: 0612812015 City Administrator, City Attorney and City Councilmembers: The formula herein shall be used to convert the monthly rates provided for the City Administrator, City Attorney and City Councilmembers to biweekly amounts without considering the hours worked by said officers: (a) The stated "monthly rate" multiplied by 12 equals the "annual rate" (b) The "annual rate" divided by 26 equals the "biweekly rate" POLICY: Employees are paid on a bi-weekly basis. If the payday falls on a non- business day, paychecks will be issued the previous business day. 1. Basic Pay Policy of the City: Within limitations of the meet and confer process and financial ability of the City, to provide: a. Equal pay for substantially equal work performed under similar conditions. b. Differences in pay based on compensable factors including recognizable differences in work performed, responsibilities assigned, experience, and qualifications required. This policy is intended to attract, retain, and motivate highly qualified staff that are necessary to enable the City of Vernon to discharge its obligations to the community with regard to the quality and timeliness of services provided. Based on the desire of the City Council to provide high quality services and leadership to the community and management to the organization, the compensation policy should be postured to pay market average compensation levels at a minimum, with an ideal of paying employees at the 75t" percentile of the applicable labor market. To this end, the Human Resources staff shall make available to the Cit� Administrator for consideration in determining pay, the salary grade at the 75 percentile of the competitive surveyed rates. The 75t" percentile will be one of several internal and external factors that the City will use to consider appropriate compensation. 2. Pay Schedules: Pay schedules are listings of classes by Bargaining Unit or unrepresented grouping, with monthly salary ranges assigned to the class. The ranges have from 1-5 salary steps (increments) with each step approximately 5% greater than the preceding step. Classes excluded from the Classified Service (i.e., Department Heads), do not have specific salary steps and may range from a minimum to a maximum salary rate. 2 Number: 11-3 Effective Date: 0612812015 Classes in the Special Classes section (i.e., Trainee) may have one or more hourly rates, one flat monthly salary rate, or a pay range within one step. 3. Plan Maintenance: The Human Resources Director shall be responsible for maintenance of the Salary Plan and shall prepare all revisions to the Plan for approval by the City Administrator and City Council. Revisions may include adjustments to fringe benefits and salary range of a class or group of classes based on: a. Internal pay comparisons between classes. b. Prevailing rates of pay in the labor market. c. Employee recruitment and/or retention problems. d. Negotiations with represented or non-represented employees. Revisions shall become effective the first pay period after City Council approval or the recommended date approved by City Council. New job classes and salary ranges shall not be added to the Plan during the yearly budget preparation process without the review and concurrence of the Human Resources Director, Finance Director, and City Administrator (see policies II-1 and II-2 for expanded treatment). 4. Placement within a Salary Range: The City Administrator has broad authority to approve placement of employees (those being hired as well as existing City employees) to any higher step within the established salary range for a particular position based upon merit, or to meet unique recruiting/retention needs within a particular Department. a. Upon Initial Appointment - Original appointment to any position in a job class shall be made at the minimum or first step of a salary range for that job class. A department head may, as authorized by the City Administrator, appoint at mid-range of a salary range when: 1) An applicant's experience, training, knowledge, skills, and abilities are substantially over and above the requirements of a job class and other applicants or, 2) A critical shortage of suitable applicants exists and a higher step is required to fill a vacancy. Initial compensation at the step above mid-range and higher in a salary range requires approval by the Human Resources Director and City Administrator in each instance. 3 Number:11-3 Effective Date:06/28/201 S b. Upon Promotion - An employee promoted from a position in one class to a position in another class with a salary range having a higher maximum rate of pay shall advance to the closest higher step within the new salary range that would provide a minimum of a 5% increase, not to exceed the maximum of the range. c. Upon Reclassification (see Policy II-2) 1) Upward Reclassification - An employee promoted or reclassified from a position in one class to a position in another class with a salary range having a higher maximum rate of pay shall be entitled to the closest higher step within the new salary range that would provide a minimum of a 5% increase, not to exceed the maximum of the range. 2) Downward Reclassification - An employee in a position reclassified to a new or existing class with a lower maximum salary rate shall either: a) Retain current salary rate if it is the same as a step within the salary range of the new class; or b) Be placed on the next highest step within the salary range of the new class that approximates the current salary if the current salary is between steps in the new salary range; or c) Be reduced to the maximum step of the salary range of the new class if current salary is greater than the maximum rate of the new salary range; or d) Be assigned a "Y" rate (red circle) designation that holds the incumbent at a current salary which is above the new range until such time as the salary rate of the new class is the same as or exceeds the amount of the "Y" rate. Establishment of a "Y" rate is an administrative determination and requires approval of the Department Head, Human Resources Director, and City Administrator. 3) Lateral Reclassification - An employee in a position reclassified to a new or existing class with a salary range having the same maximum salary rate, shall retain current salary rate. d. Upon Transfer - An employee transferred from a position in one job class to a position in the same or parallel job class having the same maximum rate of pay, whether in the same or another department, shall receive the same salary step in the new range as held in the former position. An employee's eligible merit increase date shall not change. e. Upon Reinstatement and Re-Employment 4 Number:11--3 Effective Date:06/28/2015 1) After Military Service - An employee returning from an approved military duty leave of absence (temporary or regular active duty) shall be placed at the equivalent salary rate that had been attained prior to leave. 2) After Lay-Off— A full-time employee, reinstated within 12 months of lay-off to a position in the job class previously held, shall be placed on the same salary step that had been attained prior to lay-off. 3) After Voluntary Resignation - An employee reinstated, within 12 months of voluntary resignation, to a position in the job class previously held shall be placed on the same salary step that had been attained prior to voluntary resignation. f. Upon Demotion - An employee demoted to a job class with a salary range having a lower maximum rate of pay because of less than satisfactory performance, disciplinary reasons, or the employee's own request, may be placed on the step closest to, but not more than, the salary range equal to the employee's current rate of pay. Such step determination shall be made by the Department Head and approved, in advance, by the Human Resources Director and City Administrator. g. Upon Upward Salaryy Range Change - An employee in a job class where the entire salary range is adjusted shall be compensated at the equivalent to one step greater in the new salary range than he/she was receiving in the previous salary range, not to exceed 5% increase, but not less than the first step in the new salary range subject to City Administrator and City Council approval, and the City's financial ability to pay. h. Upon Addition of a Step to a Salary Range - An employee in a job class where the number of steps in a salary range is increased by the addition of one or more steps to the top or bottom of the existing salary range shall: 1) Retain current salary and step when an additional step is added to the top of the salary range. Step advancement shall be at the next review date in lieu of any special agreement with employee and/or bargaining unit. 2) Retain current salary but have step number changed when the additional step is added to the bottom of the salary range. i. Adjustments in Salary Ranges: General adjustments in salary ranges made hereafter by virtue of increases or decreases shall be made by adjusting classes upward or downward to the appropriate standard salary range. Where the salary range for a given class or for several classes is revised 5 Number:H-3 Effective Date:06/28/2015 upward or downward, the employees holding positions in classes affected shall have their existing salary adjusted to the same relative step in the new salary range provided. 5. Advancement Within a Salary Range: a. Effective Date - The effective date of a salary step (merit) increase shall be the beginning of the pay period immediately following completion of the time and performance requirements specified in the Personnel Policies and Procedures Performance Evaluation IV-1. b. Merit Increases - All salary advancements within a salary range for a job class shall not be automatic but shall be based upon merit and ability as recorded on a performance evaluation form and upon the financial ability of the City to make such advancements. Please refer to Personnel Policies and Procedures Performance Evaluation IV-1 for additional policy. b. Frequency of Merit Increases for Full-time Employees - Employees may be granted a merit increase to the next step of the salary range at yearly (26 pay periods) intervals of continuous satisfactory service until the maximum salary rate is attained. Any variances to this policy shall be described in applicable memoranda of understanding. c. Frequency of Merit Increases for Part-time Employees - Part-time employees will advance within the salary range according to 2080 hours worked. Progression to succeeding steps does not convey or imply any additional employment or other rights beyond a wage increase. d. Merit increases for Temporary Employees - Temporary employees are hired at Step 1 and remain at the 1st step throughout their employment as temporary employees. e. Temporary Assignments and Acting Pay - Part-time employees and full- time employees who are employed in a temporary or acting job classification with a higher salary range may be appointed at Salary Step 1 or a higher salary step in order to provide a minimum 5% salary increase. f. Apprentice/Trainee Programs - Salary step increases for apprentice/ trainee programs shall be based on the Program's criteria for such step increases. g. Adjustments Coinciding with Step Increases - In the event that a promotion, reclassification, or change in salary allocation is to be effective on the same date that an employee is eligible for consideration for a step increase, he/she shall first receive the step increase if approved. h. Compensation for Portion of Pay Period — An employee serving on a full- time basis who works less than a full bi-weekly pay period, except when on authorized leave of absence with pay, shall receive as compensation 6 Number:H-3 Effective Date:06/28/2015 for such period an amount equal to the number of hours worked times the employee's hourly rate. The number of hours worked in such bi-weekly pay period shall include paid holidays. i. Denial of a Salary Step (Merit) Increase - When an employee has not demonstrated the minimum required satisfactory rating for performance on the job during the review period, the department head shall defer the salary step (merit) increase for a specified period of time that may extend to the next review date not to exceed one year. If the department head declines to recommend an annual salary step (merit) increase, the department head shall state his/her reasons in a written evaluation of the employee's job performance for the period in which such performance is being evaluated; such evaluation shall be reviewed by the department head with the employee and a copy of the evaluation forwarded to the City Administrator and Director of Human Resources. When in the judgment of the department head, the employee has at any time thereafter earned a merit increase, he/she shall so recommend in writing to the City Administrator. Upon written approval by the City Administrator, the employee shall advance to the next higher step in the salary range and receive a new salary anniversary date. Employees shall be notified in writing of denial of a merit increase on or before the effective date of the employee's evaluation, as outlined in the City's Performance Evaluation Policy. If the employee is not notified on or before his/her evaluation date, the employee shall be considered to have met the minimum required satisfactory rating for performance on the job during the review period, and eligible for annual salary (merit) step in accordance to applicable policy. 6. Supplemental Pay Provisions: a. Salary Differentials - Individual employees may receive additional pay (either a dollar amount or percentage) above base salary when assigned additional duties and responsibilities not normally found in their class, when assigned to positions that entail a specified hazardous condition, when possessing a special talent or ability utilized by the City, or hold certain certificates for educational achievement. After approval by the City Administrator and Director of Human Resources, premium pay as defined below shall be assigned to persons found to possess on a regular or temporary assignment such additional duties and responsibilities or whose positions entail certain hazards as to warrant this salary step over the base class. 1. 5% Premium Pay - A temporary 5% increase in pay shall be given to employees during periods when they temporarily assume some of the duties of higher level job classes. Upgrade pay does not apply for 7 Number:11-3 Effective Date:061281201 S short term absences or vacation coverage (2 weeks). 2. 10% Premium Pay — A temporary 10% increase in pay shall be given to employees when in the judgment of the Department Head and concurrence with the City Administrator they temporarily assume more higher and complex additional duties and responsibilities not normally found in their class. Upgrade pay does not apply for short term absences or vacation coverage (2 weeks). Notary Public Certification Pay - A 2.5% increase in base pay shall be given to employees who are designated by the City Administrator (excluding City Clerk) to perform notary public services on behalf of the City. Exceptions, additions and/or limitations to this basic policy concerning salary differentials may be found in the respective Memoranda of Understanding. d. Overtime - All full-time, non-exempt employees, by the provisions of the Fair Labor Standards Act (FLSA), who perform authorized work in excess of his/her normal work period, shall be compensated for such work at the rate of 1.5 times the regular hourly rate of pay. The City Administrator, department heads, and those management employees designated as exempt by the provisions of the Fair Labor Standards Act (FLSA), shall not be subject to overtime compensation, but shall work such hours as may be necessary for the effective operation of their respective departments. Exceptions and/or limitations to this basic policy concerning overtime work after certain hours are found in the Overtime Policy or respective Memoranda of Understanding\. All full-time, non-exempt employees, by the provisions of the Fair Labor Standards Act (FLSA), may request compensatory time off for overtime worked in lieu of cash payment, calculated by multiplying the number of hours of overtime worked by one and one-half, and subject to approval by the department head; provided, however, that accrued compensatory time off at any point in time does not exceed the maximum allowed in accordance with the Overtime Policy, Compensatory Time or respective Memoranda of Understanding. e. Call Time — Call time shall be that period of time other than regularly scheduled working time, when an employee at the direction of the department is on standby duty, is required to remain in the immediate area, and is available to receive and respond to calls for emergency service. Exceptions and/or limitations to this basic policy concerning Call-Time are 8 Number:11-3 Effective Date:061281201 S found in the respective Memoranda of Understanding. d. Emergency Premium Pay — Full-time, part-time and temporary employees will be compensated at time and a half (1.5x) for all time worked beyond their regular work schedule in a day due to a state of emergency being declared by either the City Council or City Administrator. Exceptions and/or limitations to this basic policy concerning Emergency Premium Pay are found in the respective Memoranda of Understanding. e. Court Time Pay — An employee subpoenaed to testify in court in a matter arising within the course and scope of his/her City employment shall be given paid leave to appear during on duty hours. Off duty hours shall be compensated at the applicable pay rate. Exceptions and/or limitations to this basic policy concerning Court Time Pay are found in the respective Memoranda of Understanding. 9 'Ye � RECEIVED RECFAVED MAY 13 2015 6 2ot5 STAFF REPORT CIT MAY 2 VERNON POLICE DEPARTMENT Y ADMINISTRATInN CITY CLERK'S OFFICE DATE: June 16, 2015 TO: Honorable Mayor and City Council FROM: Daniel Calleros, Police Chief RE: Law Enforcement Data Sharing Agreement Recommendation A. Find that the approval of the proposed Memorandum of Agreement("MOA") is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b) (3), the general rule is that CEQA only applies to projects that may have an effect on the environment; and B. Approve the MOA with the Los Angeles Police Department("LAPD") and the Los Angeles County Sheriff s Department ("LASD"), in substantially the same form as submitted herewith, and authorize the Police Chief to execute the MOA on behalf of the City, for the purpose of sharing data with LAPD and LASD to support cross- jurisdictional analysis of crime and criminal suspects and/or organizations. BackEround Law enforcement agencies routinely share information with one another to address crime and other public safety issues. The Vernon Police Department("VPD") and other local police agencies participate in regional data sharing agreements which has significantly enhanced the Police Department's ability to share and receive information from other law enforcement agencies. Under these agreements, law enforcement agencies are subject to strict requirements for disclosure, use, and sharing of information and limit these practices to activities undertaken pursuant to an authorized law enforcement purpose. The VPD benefits greatly from regional data sharing and recently has been requested to participate in additional data sharing group comprised of various law enforcement agencies in Southern California region. Page 1 of 2 The MOA sets forth terms and conditions for the sharing of information on an integrated system through Palantir Technologies Inc. - Instances. The VPD has found strong value in its use of other regional data sharing agreements and seeks to participate in these partnerships. The MOA outlines sharing of information relating to field investigation, including crime reports, arrest records, calls for service, and automated license plate reader data. The VPD data will be hosted on the LASD Instance platform from Palantir Technologies Inc. and will be shared with other participating law enforcement agencies. Fiscal Impact There is no cost to participate in this data sharing agreement. Attachment(s) 1. Copy of the MOA agreement Page 2 of 2 FIFTY-SECOND AMENDMENT TO MEMORANDUM OF AGREEMENT BETWEEN LOS ANGELES COUNTY SHERIFF'S DEPARTMENT AND LOS ANGELES POLICE DEPARTMENT FOR DATA SHARING BETWEEN PALANTIR INSTANCES This Fifty-Second Amendment(Amendment)to the Memorandum of Agreement(MOA or Agreement)for Data Sharing Between Palantir Instances dated October 9, 2012,by and between the Los Angeles County Sheriffs Department (LASD) and the Los Angeles Police Department (LAPD), is hereby made and entered into by and among LASD, LAPD, Long Beach Police Department (LBPD) and the Vernon Police Department shall become effective on the date the last party affixes his/her signature on this Amendment (Effective Date). LASD, LAPD, LBPD and any other agency who becomes party to the Agreement through an amendment shall be an"Agency" and collectively referred to as the "Agencies." Capitalized terms used, but not defined herein, shall be given the meanings ascribed to them in the Agreement. WHEREAS, LASD, LAPD, and LBPD have entered into the Agreement, either in its original format or pursuant to the First Amendment thereto,for sharing of data hosted within each Agency's respective Instance; WHEREAS, LASD has agreed to host the Vernon Police Department on the LASD Instance of Palantir Technologies Inc. (Vendor), and the Vernon Police Department desires to share its data with all other participating Agencies, in exchange for LASD, LAPD, LBPD, and all other existing Agencies making their respective data available to the Vernon Police Department. WHEREAS, LASD, LAPD, and LBPD desire to amend the Agreement through this Amendment to make the Vernon Police Department a party to the Agreement,in order to facilitate the foregoing; WHEREAS, the parties also wish to amend the Agreement to acknowledge and address additional agencies who purchase an Instance, or who are hosted by LASD, LAPD, or LBPD in their Instance may become a party to the Agreement, and share data with all of the other Agencies; and WHEREAS, all parties acknowledge and recognize that Vendor is neither a party to nor has any direct involvement in this Amendment. NOW, THEREFORE, in consideration of the foregoing premises and the promises, terms and conditions set forth below and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,the parties hereto, intending to be legally bound, agree as follows: 1. LASD's duties set forth in Section III.A. of the Agreement shall be expanded to apply to the Vernon Police Department and all other Agencies. 2. LAPD's duties set forth in Section III.B. of the Agreement shall be expanded to apply to the Vernon Police Department and all other Agencies. 3. A new Section III.C. shall be added to the Agreement as follows: "C.All participating agencies shall have the following responsibilities: 1. To provide data on a daily basis and to the maximum extent permitted by law, in a mutually agreed-upon electronic format, to each Agency for integration within each Agency's Instance. 2. To input its own data into its own Instance and grant view-only access of its Instance to DATA SHARING BETWEEN PALANTIR INSTANCES MOA Page 1 each participating Agency. 3. Such data may include,but is not limited to, RMS,ARS,CAD,automatic license plate recognition data, or other data that is owned by the Agency or otherwise provisioned by separate agreement for sharing in the manner proposed by this MOA. 4. To ensure that the security,control, and usage of all data provided to each Agency is consistent with recognized, legitimate law enforcement practices and purposes,and that any release of this data beyond the Agency's Instance is likewise consistent with recognized, legitimate practices(including appropriate data sharing logging)and purposes for secondary dissemination. 5. To participate in quarterly meetings and cooperate with System initiatives to analyze and use the data collected through this MOA." 6. New participating Agencies that are Hosted by an existing agency Instance shall log into the Hosted Instance with access control managed by the Host Agency. 4. The Vernon Police Department agrees that LASD, LAPD and/or LBPD(collectively the"Primary Agencies")may host additional agencies on their respective Instances of Palantir, and that,as host to the Vernon Police Department; LASD may sign all future amendments to this MOA on behalf of the Vernon Police Department. LASD agrees that it will provide copies of all future executed amendments to the Vernon Police Department. 5. All references to"either party" in the Agreement shall be deemed a reference to"any party." 6. All references to"both parties"in the Agreement shall be deemed a reference to"all parties." 7. The first sentence of Section IV (Term) of the Agreement is hereby deleted and replaced in its entirety with the following: "This MOA shall be effective for three (3) years from the date of last signature, unless extended by the parties in writing." 8. By signing this Amendment the Vernon Police Department shall be bound by all the terms and conditions of the Agreement, as amended herein. 9. Except as modified by this Amendment, the terms of the Agreement remain in full force and effect. Any conflict between the terms of this Amendment and the terms of the Agreement shall be resolved in favor of this Amendment. 10, This Amendment may be executed in one or more parts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument. Signatures to this Amendment may be provided by email, facsimile or other electronic transmission, and such signatures shall be fully binding on the party transmitting the same. DATA SHARING BETWEEN PALANTIR INSTANCES MOA Page 2 0 IN WITNESS WHEREOF,the parties have caused this Amendment to be executed by their duly authorized representatives on the dates set forth below. LOS ANGELES POLICE LOS ANGELES COUNTY DEPARTMENT SHERIFF'S DEPARTMENT Office of the Chief of Police Office of the Sheriff 100 W.First Street, 10'Floor 4700 Ramona Blvd Los Angeles,CA 90012 Monterrey Park, CA 91754 CHARLIE BECK JIM McDONNELL Chief of Police Sheriff Los Angeles Police Department Los Angeles County Sheriffs Department Dated Dated LONG BEACH POLICE VERNON POLICE DEPARTMENT DEPARTMENT Office of the Chief of Police Office of the Chief of Police 400 W.Broadway 4505 S. Santa Fe Avenue Long Beach,CA 90802 Vernon,CA 90058 ROBERT G.LUNA DANIEL CALLEROS Chief of Police Chief of Police Long Beach Police Department Vernon Police Department Dated [Dated DATA SHARING BETWEEN PALANTIR INSTANCES MOA Page 3 RECEIVED �pFVER RECEIVED �� '�° �� ,��.� jUN 1 0 2015 DAN.n JUN 1 0 2015 S�V$LY INOJ�'i C1TYCLERWsOFFICE CITY ADMINISTRATION STAFF REPORT PUBLIC WORKS, WATER & DEVELOPMENT SERVICES DEPARTMENT DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson Director of Public Works, Water and Development Services Department Originator: Felix Velasco,Assistant Engineer RE a Acceptance of Work related to Contract No. CS-0428 — Office Reconfiguration of City Administration, City Attorney, Information Technology and Human Resources Department from Victor Palos Development and Construction. Recommendation A. Find that the acceptance of work related to the Capital Improvement Project is categorically exempt under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301, Existing Facilities, part (a), because the project is merely to make interior or exterior alterations involving partitions,plumbing, and electrical conveyances; and B. Accept the work related to City Contract No. CS-0428 — Office Reconfiguration of City Administration, City Attorney, Information Technology and Human Resources Department from Victor Palos Development and Construction, and authorize the recording of a Notice of Completion for the project. Background The reconfiguration of the offices in the following departments is part of the 5-year capital improvement plan to improve existing City Building Facilities: City Administration,City Attorney and Human Resources office space. This project consisted of the reconfiguration of approximately 4,500 square feet of office space within the City Hall Building. On August 5, 2014, the City Council authorized the advertisement of the Notice Inviting Sealed, Competitive Bids for the Office Reconfiguration of City Administration, City Attorney and Human Resources Departments Project. The Notice Inviting Bids was posted on the City's website and published in the Vernon Sun newspaper, and was also advertised in the following construction related websites: Bid America, Bidboard Construction Contract Advertising, McGraw-Hill Construction, Reed Construction Data and Bid Clerk. The specifications included the standard terms Page 1 of 2 and conditions for the contract which have been approved by the City Council. The bids for Contract No. CS-0428, Office Reconfiguration of City Administration, City Attorney and Human Resources Departments Project, were received and opened on September 25, 2014. On October 7, 2014, City Council awarded Contract No. CS-0428 to Victor Palos Development and Construction for the amount of $309,900.00. The work has been completed in accordance with the project plans and specifications. Three change orders were issued for a total of$43,602.63. It is recommended that the City Council accepts the work and authorize the recording of a Notice of Completion for the project. Fiscal Impact The total budgeted funds for this project are $250,000.00. Since the low bid amount of$309,900.00 was over the budgeted amount by $59,900.00,the additional funds required for this project were covered by unused funds from other budgeted CIP projects. Moreover, three change orders were approved for this project for the total amount of$43,602.63 increasing the total contract amount to a grand total of $353,502.63 Attachment(s) Notice of Completion II I Page 2 of 2 Recording Requested By City of Vernon,Public Works,Water and Development Fee Waived Pursuant To Govt.Code 6103 When Recorded Mail To: City Clerk 4305 Santa Fe Avenue Vernon,CA.90058 SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE NOTICE OF COMPLETION NOTICE OF COMPLETION IS HEREBY GIVEN that 1. The City of Vernon, whose address is 4305 Santa Fe Avenue,Vernon,California, as Owner of the public work of improvement known as the Office Reconfiguration of City Administration, City Attorney,Information Technology,and Human Resources Department, located on 4305 Santa Fe Avenue as improved in accordance with Contract No.CS-0428 between Victor Palos Development and Construction whose address is: 887 W. Ninth Street,Upland, California 91786 as CONTRACTOR, and the PUBLIC WORKS, WATER AND DEVELOPMENT DEPARTMENT of the City of Vernon for the following work,to wit: Furnish all transportation, equipment, materials, labor, supplies and services necessary for the remodel of approximately 5,200 square feet of office space within the current City Hall building,as described within the project specifications. 2. Notice is given that the Work of Contract No. CS-0428, as amended by Owner-approved changes, if any, was completed on April 9,2015,provided,however,this notice does not alter the responsibility of the Contractor for any failure to comply with the requirements of the Contract Documents including,but not limited to,Contractor's liability for any unauthorized or non-conforming work and does not constitute acceptance of any disputed claims. This notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. Dated: PUBLIC WORKS, WATER AND DEVELOPMENT CITY OF VERNON ATTEST: BY: Samuel Kevin Wilson,P.E. Director of Public Works, Water and Development Services Maria E. Ayala,City Clerk VERIFICATION I,Samuel Kevin Wilson,Director of Public Works,Water and Development Services,state that I am an officer of the City of Vernon,to wit:Director of Public Works, Water and Development Services; that I have read the foregoing Notice of Completion and know the contents thereof and that the same is true of my own knowledge,except as to the matters which are therein stated on information or belief,and as to those matters I believe them to be true.I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.Executed in the City of Vernon on the above stated date. Approved as to Form: Samuel Kevin Wilson,P.E. Director of Public Works,Water and Development Services Brian W.Byun Deputy City Attorney DECEIVED RECEIVED JM 10 2015 JUN 1 0 2015 ` °Flr,w°°s`f "ITY ADly INIS CITY CLERK'S OFFICE STAFF REPORT DEPARTMENT OF PUBLIC WORKS, WATER AN DEVELOPMENT SERVICES DATE: June 16,2015 TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson,Director of Public Works, Water and Development Services Originator: Scott B. Rigg, Public Works and Water Superintendent RE: Bid Award for Janitorial Services Recommendation It is recommended that the City Council: A. Find that entering into the proposed contract for Janitorial Services is exempt under the California Environmental Quality Act (CEQA) in accordance with (a) CEQA Guidelines Section 15061 (b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment and (b) Section 15301, because the proposed service involves an existing project with negligible or no expansion of use; and B. Authorize the City Administrator to enter into a professional services agreement with Santa Fe Building Maintenance for Janitorial Services for a three year period at an amount not to exceed $303,948.00. Background On April 20, 2015, the City Administrator authorized staff to issue a Request for Proposals (RFP)for Janitorial Services. The RFP for Janitorial Services was posted on the City's website, and advertised in the following publications: Bid America, Construction Bidboard, McGraw-Hill Construction Dodge, and Reid Construction. On June 4, 2015,the City received eight proposals in response to the RFP. The proposals were evaluated based on the rating criteria outlined in the RFP. The rating criteria takes into account factors other than price alone, including qualifications, responsiveness to the RFP, and references. Santa Fe Building Maintenance was selected as the most qualified firm based on the aforementioned criteria. Fiscal Impact The cost for this contract will be$101,316.00 annually or$303,948.00 for the entire three year duration of the contract. Funds to cover year one of this contract have been included in the 2015-2016 fiscal year budget recently adopted by City Council. Attachments 1. Services Agreement with Santa Fe Building Maintenance for Janitorial Services SKW/sr Enclosures SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND SANTA FE BUILDING MAINTENANCE FOR JANITORIAL SERVICES COVER PAGE Contractor: Santa Fe Building Maintenance Responsible Principal of Contractor: Irineo Nuno, General Manager Notice Information - Contractor: Santa Fe Building Maintenance 15644 Palomino Drive Chino Hills, CA 91709 Attention: Irineo Nuno, General Manager Phone: (909) 606-2756 Facsimile: (909) 606-6469 Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Samuel Kevin Wilson, P.E. Director of Public Works, Water and Development Services Telephone: (323) 583-8811 ext. 245 Facsimile: (323) 826-1435 Commencement Date: July 1, 2015 Termination Date: June 30, 2018 Consideration: Total not to exceed $303,948.00; and more particularly described in Exhibit B Records Retention Period Three (3) years, pursuant to Section 9.19 1 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND SANTA FE BUILDING MAINTENANCE FOR JANITORIAL SERVICES This Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and Santa Fe Building Maintenance., a Sole Proprietorship ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on June 16, 2015. 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposal dated April 20, 2015, Exhibit "A", and Contractor's proposal to the City ("Proposal") dated June 4, 2015, Exhibit"B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed according to the standards then prevailing in the janitorial profession. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 4.0 TERM. The term of this Contract shall commence on July 1, 2015, and it shall continue until June 30, 2018, unless terminated at an earlier date pursuant to the provisions thereof. 2 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit "C". 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed $303,948.00 without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 3 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, authorized costs and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. The Director of the Department of Public Works, Water and Development Services shall have the authority to issue change orders for administrative and non-material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due Contractor under this Contract, but the combined total amount of such change orders shall not exceed $303,948.00. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 GENERAL TERMS AND CONDITIONS. 9.1 INDEPENDENT CONTRACTOR. 9.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method except as required by this Contract. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 4 9.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 9.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 9.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. j 9.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness. 9.5 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 5 9.6 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors and/or assigns. 9.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise constitute a novation. 9.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. 9.9 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 9.10 INTERPRETATION. 9.10.1 Applicable Law. This Contract, and the rights and duties of the parties hereunder(both procedural and substantive), shall be governed by and construed according to the laws of the State of California. 9.10.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 6 9.10.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 9.10.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 9.10.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms i of the City's Request for Proposals shall control over the Contractor's Proposal. 9.10.6 Choice of Forum. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into and/or is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Contract shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 9.10.7 Duplicate Originals. There shall be two (2)fully signed copies of this Contract, each of which shall be deemed an original. 9.11 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant,term and provision hereof. 9.12 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 9.13 ARBITRATION OF DISPUTES. Any dispute for under $25,000 7 arising out of or relating to the negotiation, construction, performance, non-performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 9.14 INDEMNITY 9.14.1 Contractor agrees to indemnify, hold harmless and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council and each member thereof, and its officers, employees, commission members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of: (a) any activity on or use of City's premises or facilities or any performance under this Contract; or (b) any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract. 9.14.2 This agreement to indemnify includes, but is not limited to, personal injury (including death at any time) and property or other damage (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public). 9.14.3 RELEASE. Contractor agrees to release and covenants not to sue the City, its City Council and each member thereof, and its officers, employees, commission members and 8 i representatives for any damage or injury (including death) to itself, its officers, employees, agents and independent contractors damaged or claiming to be damaged from any performance under this Contract. 9.15 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of 1 insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 9.15.1 Automobile Liability with minimum limits of at least $100,000/300,000/50,000 if written on a personal automobile liability form, for using a personal vehicle; or an amount of$500,000 including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. 9.15.2 General Liability with minimum limits of at least $1,000,000 combined single limits written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence"form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the ' policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. (a) If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. 9.15.3 Professional Errors and Omissions coverage in a sum of at least $1,000,000. Applicable aggregates must be identified and claims history provided to determine amounts remaining under the aggregate. 9.15.4. Contractor shall comply with the applicable sections of the 9 California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: (a) Provide copy of permissive self-insurance certificate approved by the State of California; or (b) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of$1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or © Provide a "waiver"form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.15.5. Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. 9.15.6 Insurance shall be placed with insurers with a Best's rating of no less than B:VIII. 9.15.7 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.15.8 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or 10 i 1 recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or (c) self insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set- off or recoupment from any sums due Contractor. 9.16 NOTICES. Any notice or demand to be given by one party to the other be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: City of Vernon Attention: Samuel Kevin Wilson, Director of Public Works, Water and Development Services 4305 Santa Fe Avenue Vernon, CA 90058 If to the Contractor: Santa Fe Building Maintenance Attention: Irineo Nuno, General Manager 15644 Palomino Drive Chino Hills, CA 91709 Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 9.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 11 i 9.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. 9.19 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 9.20 CONFLICT. Contractor hereby represents, warrants and certifies that no member, officer or employee of the Contractor is a director, officer or employee of the City of 12 Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. 9.21 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25)for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 9.22 LIVING WAGES PREVAILING WAGES WHERE APPLICABLE. Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. The provisions of California Labor Code 1770, et seq., regarding the payment of prevailing wages on public works, and related regulations, apply to all City contracts. If Living Wage Provisions and Prevailing Wage provisions should both apply to this Contract, Contractor and all of its Subcontractors shall pay the higher of the applicable wages to the extent required by law. 9.23 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that 13 it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "E". [Signatures Begin on Next Page]. 14 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. i City of Vernon, a California charter City Santa Fe Building Maintenance, a sole and California municipal corporation Proprietorship By: By: Mark Whitworth, City Administrator Name: Title: ATTEST: By: Name: Maria Ayala, City Clerk Title: APPROVED AS TO FORM: Hema Patel, City Attorney 15 j EXHIBIT A I REQUEST FOR PROPOSAL i i i f i i i i 1 a 3 3y� 3 16 August 2013 l gw- � V5 A �Y 1,� ^f ? '.At7 '. ON N- 0-1 WA Sul - ,i` � ' ) V<xRW 3uWY Am W7IN nu a � � ANI AW � �w WO A I CITY OF VERNON REQUEST FOR PROPOSAL FOR JANITORIAL SERVICES 1. INTRODUCTION AND PROJECT The City of Vernon is soliciting proposals from qualified contractors to provide Janitorial Services to the City of Vernon (City). The proposed work will required the selected proposer to perform professional cleaning services at various locations in the City. The City will select one firm, based on demonstrated competence and a cost effective approach to delivering professional level janitorial services. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history Vernon has been developed as an industrial community. At the turn of the 20" century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business men and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at-large, who serve five- year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own membership to serve one-year terms. Labor Force: Vernon has approximately 250 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works, Water and Development Services Department, Gas and Electric Department and Health and Environmental Control Department. Present bargaining units.recognized include the Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. 3. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking the services of a highly qualified contractor to provide Janitorial Services, as described below, at City Hall, Petrelli Building, Gas & Electric Building, and the Public Works Building. -2- i I I� The contractor shall utilize "green" (designed to preserve human health and environmental jquality) cleaning products and methods whenever possible. A list of green products and/or j methods to be utilized by the contractor shall be pre-approved by the City prior to use. f 1. TOILET&LOCKER ROOMS: (Includes private toilet rooms) A. Daily: 1. Sweep and wet mop or scrub floors utilizing a cleaner-disinfectant. Sweeping, Damp Mopping Scrubbing:The floors shall be cleaned with a germicidal detergent solution,be free of dirt,water streaks, mop marks, string, gum, grease,tar, j etc., and present an overall appearance of cleanliness. All surfaces shall be dry and the corners clean.The contractor shall use designated mops for bathrooms,hallways, and break rooms. 2. Clean and sanitize all fixtures, including metal and chrome surface water closets, urinals, washbasins, shower stalls, mirrors, waste receptacles, shelving, dispensers, door knobs and wall surfaces, utilizing a germicidal detergent solution. Fixture Cleaning: All fixtures and metal surfaces (washbasins, urinals, toilets, lockers, shower stalls, etc.) shall be cleaned with an approved germicidal detergent solution. There shall be no dust, spots, stains, rust, green mold, encrustation, or excess moisture. 3. Empty waste receptacles and refill service/supplies,paper towel, soap,toilet paper and seat cover dispensers. Empty, clean and disinfect sanitary napkin receptacles; replace soiled bags with new ones. Collect soiled bags in separate containers for disposal.Black trash bags shall be used for regular trash dispensers and clear bags shall be used for recycled materials. Servicing: All supplies shall be provided, and waste receptacles and sanitary napkin dispenser's emptied,cleaned,disinfected and new bags inserted. 4. Spot-clean other surfaces and dust horizontal surfaces. Spot-Cleaning: Smudges,marks or spots shall be removed without causing unsightly discoloration. Thorough Dusting_ There shall be no dust streaks. Corners, crevices, moldings and ledges shall be free of all dust. There shall be no oils, spots or smudges on dusted surfaces caused by dusting tools. When inspected with a flashlight,there shall be no traces of dust on any surface. -3- I B. Weekly: 1. Wet mop and spray buff all resilient floors. Wet Mopping and Sprat/ Buffing: Floors shall be free of streaks and mop-strand marks. There shall be no skipped areas. All walls, baseboards and other surfaces shall be free of splashings and markings from the equipment.The finished area shall have a uniform luster. 2. Wet wipe the full surface area of all stall partitions, doors,countertops,shelves, and wastepaper receptacles utilizing a multipurpose germicidal cleaner. Wet Wiping: All dirt, dust, water stains, spots, streaks, and smudges shall be removed from the surfaces. Prime and Treat Floor Drains: 3. Prime and treat floor drains with an approved liquid enzyme treatment to reduce odors and gas smells. C. Monthly: 1. Wet mop and wax all hard and resilient flooring in remaining room areas. Wet Mopping and Waxing_Damp mop and wax all hard and resilient flooring. The finished area shall have a uniform luster. Walls, baseboards and other surfaces shall be free of residue. Grout Lines: All grout lines shall be free of all stains and discoloration. The contractor shall use the proper cleaning agents and removal techniques to ensure the grout lines are kept in pristine condition. D. Quarterly: 1. Strip and apply four coats of floor finish to resilient floors using a non-slip floor wax. Stripping: All old finish or wax shall be removed. There shall be no evidence of gum, rust, burns or scuffmarks. There shall be no buildup of old finish or wax in corners or crevices. Finishing: Walls, baseboards and other surfaces shall be free of finish or waxy residue and marks from the equipment. Floors shall be free of streaks, mop strand marks. There shall be no skipped areas. -4- I i i E � I 2. ROOM CLEANING: Includes all office areas, file rooms, conference rooms, j kitchens, city council chambers, lounges, health units, and the corridor space adjacent to these areas. I A. Daily: i t 1. Empty wastebaskets and remove trash to designated disposal area. Clean washbasins and mirrors, as necessary; supply paper towels where dispensers are provided. Clean � rY; pp Y.P p P the areas used for the collection of solid wastes. Wash or steam clean all cans used for collection of food remnants, inside and out. No chemicals or cleaners shall be used without the prior written consent of the Public Works& Water Superintendent. (Note: Carts and containers used for the collection and/or storage of waste material shall be of non-combustible or flame resistant construction). Recyclable Waste Collection: All recyclable waste disposed of in designated recycling bins throughout the buildings shall be collected and removed to an area designated by the City. jLunch Rooms: Thoroughly germa-clean lunchroom floors including tables, chairs and counter tops with approved disinfectant. Solid Waste Collection:All solid wastes generated in the building shall be collected and removed to area designated for trash by the City. Porcelain Ware Cleaning: Washbasins shall be clean and bright; there shall be no dust,spots,stains,rust,green mold,encrustation,or excess moisture. Damp Wiping Mirrors: Mirrors shall be clean and free of dirt, dust, streaks and spots. 2. Clean interior of microwaves,sinks,ovens,stoves,refrigerators and coffee-pots. 3. Clean both sides of plate glass within the building: Interior Glass Cleaning: Glass shall be clean and free of dirt, dust, streaks, watermarks, spots and grime and shall not be cloudy. Cleaners shall be non-abrasive and special care shall be taken so that glass treatments (tinting) are not scratched. The contractor shall use a specified cleaner and towels,supplied by the City,to clean the bullet resistant glass in the Vernon Police Department. 4. In office areas, file rooms, conference rooms, and lounge areas sweep floors, vacuum carpet and extend the sweep or vacuum to remove obvious dirt from around and under furniture.Remove gum from under desks and workstations. -5- i Hepa Vacuuming_ Carpet surfaces shall be free of obvious dirt, dust and other debris utilizing a Hepa equipped vacuum. Note: For the purpose of this contract, whenever the term carpet or carpeting is used, it is intended to include wall-to-wall carpeting as well as room size rugs and area rugs. I SweepiM. Floor surfaces shall be free of obvious dirt or debris. Sweep with a chemically treated mop. Dustin&: Available horizontal surfaces shall be free of obvious dust. Dust all blinds. Dust with a treated dust cloth all horizontal surfaces that are readily available and visibly require dusting. Carpet Spotting_ Excessive buildup spillages or crusted material shall be removed along with spots, smears and stains. There shall be no evidence of fuzzing caused by harsh rubbing or brushing. Cleaned areas shall blend with adjacent areas of carpeting.Spot cleaning shall be done according to manufacturer recommendations. 5. Damp mop and spray buff lounge areas,including kitchens. Damp Moppingand nd SpMy Buffing:Floors shall be free of streaks,mop strand marks and skipped areas. Walls, baseboards and other surfaces shall be free of splashings and markings from the equipment. The finished area shall have a uniform luster. B. Weekly: 1. In office areas, file rooms, city council chambers, conference rooms and lounge areas thoroughly dust horizontal surfaces of furniture and all wall surfaces within approximately 70 inches of the floor and vertical surfaces and under surfaces (knee wells,chair rungs,table legs,etc.). Clean glass desktops. Vacuum all carpets. Thorough Dusting_There shall be no dust streaks. Corners, crevices, moldings and ledges.shall be free of all dust. There shall be no oils, spots or smudges on dusted surfaces caused by dusting cycle. Wet Wiping(Glass Desk Top): Glass desktops shall be free of dirt,dust, streaks and spots. Thorough Vacuuming Carpets, including corners, shall be clean and free from dust balls,dirt and other debris; nap on carpets shall lie in one direction upon completion of the vacuuming task. 2. Sweep full floor area. -6- i I Thorough Sweeping: Floors shall be clean and free of trash and foreign matter. No dirt shall be left in corners,under furniture or behind doors. 3. Spot clean wall surfaces within approximately 70 inches of the floor. Spot Cleaning: Smudges,marks or spots shall be removed without causing unsightly 1 discoloration. i C. Monthly: i 1 1. Wet mop and wax all hard and resilient flooring in remaining room areas: i Wet Mopping and Waxing: Damp mop and wax all hard and resilient flooring. The finished area shall have a uniform luster. Walls, baseboards and other surfaces shall be free of residue. Telephones:Use germicidal cleaner to clean all telephones. D.Monthly: 1. In office areas, file rooms, and conference rooms, damp wipe glass in interior office i doors,partitions and bookcases. E.Quarterly: l. Strip and apply four coats of floor finish to all flooring using a non-slip wax. Stripping_ All old finish or wax shall be removed. There shall be no evidence of gum,rust burns or scuffmarks. Finishing: Walls, baseboards and other surfaces shall be free of finish residue and marks from equipment. Floors shall be free of streaks, mop strand marks and skipped areas. The finished area shall have a uniform luster. 1 3. MAIN ENTRANCES,MAIN LOBBIES AND MAIN CORRIDORS A. Daily: 1. Sweep and damp mop bare floors, and vacuum carpeted floor areas. Clean and polish metal doorknobs, push bars, kick plates, railings and other metal surfaces; clean and polish wood handrails, doors and other wood surfaces; clean spots and marks off walls,dust all surfaces within approximately 70 inches from the floor. Thorough Sweeping_Floors shall be clean and free of trash and foreign matter. No dirt shall be left in comers, under furniture or behind doors. -7- Thorough Vacuuming: Carpets shall be clean and free from dust balls,dirt and other debris; nap on carpets shall lie in one direction upon completion of the vacuuming task. Metal Polishing: Metal surfaces shall be free of smears, stains and finger marks. They shall be clean and bright and polished to a uniform luster. Wood Polishing:Wood surfaces shall be clean and free of smudges and residue. Spot Cleaning: Smudges,marks or spots shall be removed without causing unsightly discoloration. Thorough Dusting_There shall be no dust streaks. Corners,crevices,moldings and ledges shall be free of all dust.There shall be no oils, spots or smudges on dusted surfaces caused by dusting tools. 2. Damp mop and spray buff all hard and resilient floors. Damp Moppingand Spray Buffing_Floors shall be free of streaks, and mop strands marks. There shall be no skipped areas. Walls, baseboards and other surfaces shall be free of splashing and markings from the equipment. The finished area should have a uniform luster. 3. Clean both sides of entrance door glass and glass surrounding entrance doors within reach. Glass Cleaning: All glass shall be clean and free of dirt, grime, dust, streaks, watermarks and spots and shall not be cloudy. B.Monthly: 1. All grout lines shall be clean and free of stains and discoloration utilizing proper cleaning agents and techniques to ensure they remain in pristine condition. C. Quarterly: 1. Clean and polish all door thresholds. Cleaning`Thresholds: Thresholds shall be clean and free of oil, grease, dirt and grime. 2. Strip and apply four coats of floor finish to all hard and resilient floors using a non- slip wax. -8- i i I Ii j i Stripping: All old finish or wax shall have been removed. There shall be no 1 evidence of gum, rust, burns or scuffmarks. Water solutions shall not be used on wood flooring. Note: Additional coats of finish may be required between quarterly applications in order to meet the quality requirements identified in Part 3 (Main Entrances,Main Lobbies and Main Corridors). Finishing: Walls, baseboards and other surfaces shall be free of finish residue and marks from equipment. Floors shall be free of streaks, mop strand marks and skipped areas. The finished area shall have a uniform luster. { 4. STAIRWAYS: i A. Three Times Weekly: (Mon-Wed-Fri) i I. Sweep or vacuum stair landings and steps;dust railings and ledges. Sweeping or Vacuuming Stairway Landings and treads shall be free of dirt, dust, and other loose foreign matter. The contractor shall take precautions to ensure the non-slip tape is not damaged during cleaning operations. ? B. Monthly: i 1. Wet mop or scrub steps, risers and landings; clean glass surfaces and polish bright metal and woodwork. Spot clean walls to a height of approximately 70 inches. Wet Mopping or Scrubbing_Steps,risers and landings shall be clean and free of dirt, water streaks, mop marks, string, gum, grease, tar, etc., and present an overall appearance of cleanliness. All surfaces shall be dry and the corners clean. Cleaning(Glass):Glass shall be clean and free of dirt,dust,streaks and spots. Bright Metal Polishing: Bright metal surfaces shall have a polished and lustrous appearance. Spot Cleaning; Smudges, marks, or spots shall have been removed without causing unsightly discoloration. 5. PASSENGER ELEVATORS: A. Daily: 1. Clean all surfaces in the interior of the car, including floor track, and polish bright metal surfaces. Clean exterior surfaces of all doors and frames. Dusting (Interior Elevator Surfaces): All vertical and horizontal surfaces shall be clean and free of dirt and dust. -9- i i Damp Wiping: Damp wipe interior and exterior elevator surfaces using a multipurpose germicidal cleaner. All surfaces shall be clean and free of finger marks and smudges. Cleaning (Elevator floor track): Floor tracks shall be free and clean of dirt and grime, including miscellaneous debris. Bright Metal Polishing_ Bright metal surfaces shall have a polished and lustrous appearance. Vacuuming: Elevator carpets shall be free of dustballs,dirt and other debris. Spot Clean Carpets: Carpets shall be kept free of any stains or spots. 6. DRINKING FOUNTAINS A. Daily: 1. Clean drinking fountains using appropriate cleaning agents. Cleaning Drinking Fountains: The surtaces shall be clean and bright, and they shall be free of dust,spots,stains and streaks. Metal Polishing:Metal surfaces shall have a polished and lustrous appearance. 7. STORAGE SPACE/JANITORIAL ROOMS I A. Monthly: 1. Sweep the full floor area: Thorough Sweeping_Floors shall be clean and free of trash and foreign matter. No dirt shall be left in corners,under furniture,or behind doors. 8. ENTRANCE A. Every Two Months: 1. No less than six times a year, clean and shampoo entrance rugs as required to maintain quality standards. Shampooing: Entrance rugs shall be clean and free of dirt, grime, stains, and excessive buildup and crusted material. -10- I I I j 9. EXTERIOR WINDOWS i A. ANNUALLY: 1 1. The exterior windows of City Hall, Light&Power Building(first floor),Fire Station No. 2, and Petrelli Building shall be cleaned one (1) time annually on the following month: I • June I 10. MINI AND VERTICAL BLINDS i A. ANNUALLY: 1. Remove from the building premises all mini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and cords. Washing: Both sides of blind slats shall be clean and free of dust and water. 2. Dust or vacuum all blinds at a 6-month interval from washing cycle. Dusting: Both sides of blind slats shall be free of dust. 11. HIGH CLEANING A. Monthly: 1. Clean surfaces and objects in the building approximately 70 inches or more from the floor.This includes but is not limited to the wall and ceiling areas,ventilating and air conditioning outlets,transoms, clocks,ceiling moldings,tops of partitions,overhead pipes; wall fans, pictures, plaques, wall or ceiling diffusers, file cases, bookcases, lockers,etc. Damp wipe and dry high surfaces such as transoms,clock glass,picture frames and glass, smudged areas surrounding air grilles, diffusers, etc. Drapes shall be vacuumed in place. High Cleaning: Surfaces shall be clean and free of dust. Where glass is present,both sides shall be clean and free of streaks. 12. MISCELLANEOUS REQUIREMENTS 1. Lights shall be used only in areas where and at the time when work is actually being performed. 2. Mechanical equipment controls for heating,ventilation,and air-conditioning systems shall not be adjusted by the workers. 3. Water faucets or valves shall be turned off after the required usage has been accomplished. - 11 - i 4. Windows shall be closed and lights and fans turned off when not in use. S. Organize and train employees to participate in building fire and civil defense drills. 6. Report fires, hazardous conditions, and items in need of repair to the contracting officer's representative. 7. Lights shall be turned off in each location where nobody is remaining, including unoccupied restrooms and offices. Modular and/or Systems Furniture and Upholstered Furniture A. Monthly: 1. Thoroughly vacuum to remove embedded dirt and dust. Thorough Vacuuming All modular systems and upholstered furniture shall be vacuumed completely to remove all dirt and dust. Spot Cleaning Check and spot clean all modular desks and upholstered furniture with approved cleaner. All spot cleaning shall be done according to manufacture recommendations. 13. CARPET SHAMPOOING REQUIREMENTS A. Weekly: 1. During the week, check and spot clean corridors, lobbies, individual areas, conference rooms, and all other carpeted areas on the floors as needed. Spot clean as per manufacturer recommendation. B. Bi-Annually: 1. All Carpeted areas in the City Hall,Power Plant offices and Petrelli building will be shampooed following the manufacturer's recommended procedures. Carpet Shampooing: All carpets shall be clean, free of spots, spillages and removable stains. There shall be no evidence of fuzzing caused by harsh rubbing or brushing. Note: Furnishings moved during carpel shampooing shall be replaced in their original position. -12- i i J ! 4. QUALIFICATIONS& CRITERIA A. Qualifications: The City of Vernon will select one firm for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: 1. The contractor shall have three (3) years of professional experience providing Janitorial Services in a government or commercial office space. 2. Have in place all labor, equipment, materials, tools, and supervision required to perform the work associated with this service. 3. Hold the necessary City, County, State, and Federal permits or licenses to perform this service. I 4. The contractor shall carry insurance in accordance with the provisions set-fourth in Attachment No. 6(Sample Services Agreement). B. Selection Criteria: The City will conduct a comprehensive,fair,and impartial evaluation of proposals received in response to this RFP. All proposals received from vendors will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any vendor. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring proposal: 1. 40%Qualifications, background and prior experience of the firm in the Service Area(s)being proposed,experience of key staff assigned to oversee services provided to Vernon,evaluation of size and scope of similar work performed and success on that work. 2. 30% Cost and fees to the City for handling matters. Cost is not the sole ( determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas,the Proposer should so state. 3. 10%Responsiveness to the RFP,and quality and responsiveness of the proposal. 4. 20%References including past performance of proposer. -13- i 5. FORMAT AND DELIVERY RESPONSE Respondents are asked to submit seven(7) copies and one(1)electronic copy of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum,the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X I I" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a firm brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Provide one(1) unbound original of your firm's response and one electronic version 4. Prominently label the package: "RFP FOR JANITORIAL SERVICES" and include the name of the primary respondent. Deliver the response to: City of Vernon Attention: Samuel Kevin Wilson, P.E. Director of Community Services and Water 4305 Santa Fe Avenue Vernon,CA 90058 5. A mandatory Job-Walk will be held on Thursday,May 21,2015 at 10:00 a.m. Responses are due on or before 2:00 o.m. on Thursday, June 4, 2015. Late response will not be accepted. If you have any question about this RFP, please contact Scott B. Rigg at(323) 583-8811 ext.279. B. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90)days from the date of submittal. If the proposal contemplates the use of sub-contractors, the sub-contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the - 14- i assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. i D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. The Miscellaneous Janitorial Services on Page Nos. 24 through 29, items one (1) through twenty (20), shall be submitted as part of the proposal. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any proposer. All prices should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: In addition to completing and submitting Attachments 1-3, provide a detailed description of the proposer and his/her/its 1 qualifications, including names, titles, and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of references. The selected proposer shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non-Collusion. Proposer must submit a completed and signed, Affidavit of Non-Collusion, included as part of Attachment No.4. 6. ADDENDA,CHANGES,AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda,changes, and amendments, if made,will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. The preferred manner of communications is via e-mail due to its timeliness. 7. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. -15- B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice,at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City,although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. I G. Respondents shall not issue any news release pertaining to this RFP,or the City without prior written approval of the City. I 1. All submitted proposals and information included therein or attached thereto may become public record upon delivery to the City. 8. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST The City may,at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. -16- i I 9. LIVING WAGE ORDINANCE f The selected consultant shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. The consultant shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall a prohibition on an employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the standard form contract, attached hereto as Attachment No. 6. Upon the City's request, certified payroll records shall promptly be provided to the City. I ] 10. STANDARD TERMS AND CONDITIONS i Prior to the award of any work hereunder, City and proposer shall enter into the written contract attached hereto, for services, as Attachment No. 6. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. The term of the Contract shall not exceed three(3)years. 3 1 ' I - 17- ATTACHMENTS 1.Attachment No. 1 —Proposer Checklist 2.Attachment No. 2—Signature Page and Legal Status 3.Attachment No. 3—Unit Price Proposal Form 4.Attachment No. 4—Affidavit of Non-Collusion 5.Attachment No. 5—Vendor List Questionnaire 6.Attachment No. 6—Sample Standard Form Contract I -18- ' I ATTACHMENT NO. 1 i PROPOSER'S CHECKLIST TO THE PROPOSER: The following list is provided for the convenience of both you and the City and help eliminate errors and omissions which may render your proposal unacceptable. Please check all appropriate boxes and submit with your proposal. i ❑ ATTACHMENT NO. 1 -PROPOSER CHECK LIST i ❑ ATTACHMENT NO.2- SIGNATURE PAGE AND LEGAL STATUS � ❑ ATTACHMENT N0.3-UNIT PRICE PROPOSAL FORM ❑ ATTACHMENT NO.4-AFFIDAVIT OF NON-COLLUSION FORM ❑ ATTACHMENT NO.5 -VENDOR LIST QUESTIONNAIRE FORM ❑ ATTACHMENT NO.6-SAMPLE STANDARD FORM CONTRACT Proposals must submit SEVEN(7)COPIES AND ONE(1)ELECTRONIC COPY of all proposal documents. All proposals shall be enclosed in sealed envelopes,distinctly marked""RFP FOR JANITORIAL SERVICES"and the proposer's name and address appearing on the outside. 7 J 31{j 7 5 -19- i ATTACHMENT NO. 2 SIGNATURE PAGE,LEGAL STATUS AND ACKNOWLEDGEMENT OF ADDENDA The Proposal shall be signed by an authorized signatory with his/her usual wet ink signature. An authorized signatory shall be one of the following: (1) Sole Proprietorship:An individual shall sign. (2)Partners-bin(General or Limited): A partner shall sign for a partnership;the partner shall give the names and addresses of all partners. (3)Corporation:An officer shall sign for a corporation. The corporate name must be attested by the corporate seal. The names and titles of the president and all officers of the corporation who are authorized to sign the Proposal Forms must be listed in an authenticated incumbency certificate signed by the corporate secretary. A signature other than a corporate officer's will be accepted only if an authenticated incumbency certificate and corporate resolution conferring signature authority is attached. (4)Joint Venture: Proposers shall use the appropriate section(s)listed above based on their applicable situation. The undersigned certifies that he/she is an official legally authorized to bind his/her firm and to enter into a contract should the City accept this proposal. Proposal by (Name of Firm) Legal status of proposer: Please check the appropriate box Corporation State of Incorporation Partnership List Names DBA State full name DBA -20- i I I I Other Explain 3 Respectfully submitted: Signature of Proposer Title I (Authorized Signature) 1 Address City State Zip Telephone No.( ) License Number: Date of Expiration: Date: (SEAL-if Proposal is by a corporation) ADDENDUM NO. PROPOSER'S INITIALS a 1. 2. 3. -21 - INCUMBENCY CERTIFICATE Print legibly the names and title of the president and all officers of the Company who are authorized to sign the Proposal Forms: PRESIDENT'S AND OFFICERS' NAMES: TITLE: i The undersigned hereby certifies to the City of Vernon that he/she is the duly elected and acting Secretary of (the "Company"), and that, as such, he/she is authorized to execute this Incumbency Certificate on behalf of the Company, and further certifies that the persons named above are the duly elected, qualified and acting officers of the Company, holding on the date hereof,the titles and positions set forth opposite their names and are authorized to sign the Proposal Forms. IN WITNESS WHEREOF, the undersigned has executed this Incumbency Certificate this day of 520 Print Secretary's Name Secretary's Signature -22- 1 I I j ATTACHMENT NO.3 i I UNIT PRICE PROPOSAL FORM INCLUDES ALL MISCELLANEOUS SERVICES FACILITY AREA IN SQUARE FEET MONTHLY COST i City Hall Basement 5,250 $ City Hall First Floor 9,800 $ City Hall Second Floor 27,600 $ City Hall Third Floor 7,876 $ Petrelli Building 3,058 $ Light and Power 3,162 $ Public Works Building 3,895 $ TOTAL COST PER MONTH $ Leonis Building 2,812 $ (Optional Item) TOTAL COST PER MONTH $ INCLUDING OPTIONAL ITEM For proposal comparison purposes,the total cost with optional items will be used. Submitted by: Address: Signature: -23- MISCELLANEOUS JANITORIAL SERVICES (Not Additional Cost Items) The following items shall be deducted from the base proposal in the event the City determines, in its sole opinion, that the below scheduled maintenance events are not necessary. Modifications in Scope of Services must be authorized by City of Vernon prior to the commencement of work. In weighing proposals, the City will make that calculation based upon proposed price,before any deductions. 1. FLOORING: Strip and apply four (4) coats of floor finish to flooring. Flooring costs shall be inclusive to Item Nos.three(3)through twenty(20). • ITEM 1:Ceramic Tile: Cost Per Quarter Per Square Foot: • ITEM 2: Vinyl Tile: Cost Per Quarter Per Square Foot: • ITEM 3:Rubber Tile: Cost Per Quarter Per Square Foot: 2. ENTRANCE AND ELEVATOR RUGS • ITEM l: Clean and shampoo entrance and elevator rugs as required to maintain j quality standards.This task shall be performed not less than six times a year. Cost Bi-Monthly: 3. CITY HALL FIRST FLOOR-WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cost Annually: • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily: 4. CITY HALL FIRST FLOOR-MINI AND VERTICLE BLINDS • ITEM 1: Remove from the building premises all mini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and cords. -24- i I I I Cost Annually: • ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be free of dust. Cost Bi-Annually: 5. CITY HALL FIRST FLOOR-CARPET SHAMPOOING REQUIREMENTS(Bi- Annually) ITEM 1: All carpeted areas shall be shampooed as per the manufacturers I recommended procedures. Cost Bi-Annually: 6. CITY HALL SECOND FLOOR- WINDOWS AND GLASS I • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. i Cost Annually: • i� ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. I Cost Daily: 7. CITY HALL SECOND FLOOR- MINI AND VERTICLE BLINDS • ITEM l: Remove from the building premises all mini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and cords. Cost Annually: • ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be free of dust. Cost Bi-Annually: 8. CITY HALL SECOND FLOOR-CARPET SHAMPOOING REQUIREMENTS (Bi- Annually) • ITEM 1: All carpeted areas shall be shampooed as per the manufacturers recommended procedures. -25- i Cost Bi-Annually: 9. CITY HALL THIRD FLOOR- WINDOWS AND GLASS i, • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cost Annually: • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily: lv CITY HALL THIRD FLOOR-MINI AND VERTiCLE BLINDS • ITEM 1: Remove from the building premises all mini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and cords. Cost Annually: • ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be free of dust.. Cost Bi-Annually: 11. CITY HALL THIRD FLOOR- CARPET SHAMPOOING REQUIREMENTS(Bi- Annually) • ITEM 1: All carpeted areas shall be shampooed as per the manufacturers recommended procedures. Cost Bi-Annually: -26- I i 12. PETRELLI BUILDING-WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. i Cost Annually: j • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily: 13. PETRELLI BUILDING- MINI AND VERTICLE BLINDS • ITEM 1: Remove from the building premises all mini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and cords. Cost Annually: • .ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be free of dust. Cost Bi-Annually: 14. PETRELLI BUILDING-CARPET SHAMPOOING REQUIREMENTS(Bi-annually) • ITEM 1: All carpeted areas shall be shampooed as per the manufacturers recommended procedures. Cost Bi-Annually: 15. GAS&ELECTRIC-WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cost Annually: • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily: -27- 16. GAS &ELECTRIC-MINI AND VERTICLE BLINDS • ITEM l: Remove from the building premises all mini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and cords. Cost Annually: • ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be free of dust. Cost Bi-Annually: 17. PUBLIC WORKS BUILDING- WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cost Annually: i • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily: 18. LEONIS BUILDING -WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cost Annually: • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily: 19. LEONIS BUILDING-MINI AND VERTICLE BLINDS • ITEM l: Remove from the building premises all mini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and cords. Cost Annually: • ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be free of dust. -28- i i i i Cost Bi-Annually: 20. LEONIS BUILDING - CARPET SHAMPOOING REQUIREMENTS (Bi- Annually) • ITEM 1: All carpeted areas shall be shampooed as per the manufacturers recommended procedures. Cost Bi-Annually: 1; i i I � I a 3 -29- ATTACHMENT NO. 4 AFFIDAVIT Ot'NUN-COLLUSION CONTRACTOR STATE OF CALIFORNIA )SS COUNTY OF LOS ANGELES] being first duly sworn deposes and says that he/she is (Insect"Sale Owner',"Partner","president',"Secretary",or other proper title) of (Insert name of Proposer) who submits herewith to the City or Vernon a proposal; That all statements of fact in such proposal are true; That such proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association, organization or corporation; That such proposal is genuine and not collusive or sham; That said proposer has not,directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other proposer or anyone else interested in the proposed contract; and further That prior to the public opening and reading of proposals,said proposer: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham proposal; b. Did not directly or indirectly,collude,conspire,connive or agree with anyone else that said proposer or anyone else would submit a false or sham proposal,or that anyone.should refrain from proposing or withdraw his/her proposal; c.Did not, in any manner,directly or indirectly seek by agreement,communication or conference with anyone to raise or fix the proposal price of said proposer or of anyone else, or to raise of fix any overhead profit or cost element of this proposal price,or of that of anyone else; d. Did not,directly or indirectly, submit his proposal price or any breakdown thereof,or the contents thereof,or divulge information or data relative thereto, to nay corporation,partnership, company,association,organization,or to any member or agent thereof, or to any individual or -30- 1 i group of individuals, except the City of Vernon,or to any person or persons who have a partnership or other financial interest with proposer in his/her business. I certify under penalty of perjury that the above information is correct By: Title: j Date: �I I -31 - II i I ATTACHMENT NO.5 CITY OF VERNON 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)583-8811 Vendor List Ouestionnaire Affidavit of Equal Opportunity&Non Segreeation In order to be placed to the City's vendor list and be eligible to receive City business, you must provide the following information except where indicated as"optional". By submitting this form you are declaring under penalty of perjury under the laws of the State of California and the laws of the United States that the information is true and correct. Furthermore, you arc certifying that your firm will adhere to equal opportunity employment practices to assure that applicants and employees are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex or age. And, your firm does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location, under its control, where segregated facilities are maintained. Name of Company Business Telephone Address Fax Number (optional) City State Zip Contact Person E-mail Address Tax ID Number(or Social Security Number) Remit Address(if different) Please state clearly and concisely the type(s)of goods and services your company provides: -32- I I I i ATTACHMENT NO. 6 SAMPLE STANDARD FORM CONTRACT SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR[BRIEF DESCRIPTION OF SERVICES] ! i COVER PAGE i Contractor: [insert name of contractor] 1 Responsible Principal of Contractor: insert name,title Notice Information-Contractor: [insert name of contractor] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile: [insert fax number] Commencement Date: [insert commencement date] Termination Date: [insert termination date] Consideration: Total not to exceed $[insert amount] (includes all applicable sales tax); and more particularly described in Exhibit C Records Retention Period Three(3) years, pursuant to Section 9.19 -33- i III SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND[CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] THIS Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and[Contractor's Name], a [State incorporated in] corporation ("Contractor"). I The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated Exhibit"A", and Contractor's proposal to the City("Proposal")dated , Exhibit"B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed according to the standards then prevailing in the[state] profession. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be -34- I I I 1 fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. j 4.0 TERM IYIUT1 )S ' / Afd1`E� / t�bM�\f :tW�l lki�lG[�q d�lr�r�r�ble of spe�ifre��t�c]��yet fcs��r ifi��e sp�o�fl�zllrioih's/k �F� bl'�n the idlCopoat . The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit ��1ltrtat�v, 2 for seYvieo � i��rrtring rturej The term of this Contract shall commence on [state date], and it shall continue until [state date which may not be more than i 1 three years from the commencement date], unless terminated at an earlier date pursuant to the provisions thereof. t 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are I comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit"C". 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed [state amount]without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies,facilities, equipment and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction,telephone, air travel, auto rental, subsistence, and all related costs and expenses. 6.0 PAYMENT. -35- 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, authorized costs and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. lilll twoggp oT[x��,�� - b rhlCr TM � � r� arE ►� f=FlaM�>[ra F�' r[ #e�Crt�t�wr There is no change order authority provided in this Contract. The Director of the Department of[identify department] shall have the authority to issue change orders for administrative and non-material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due Contractor under this Contract, but the combined total amount of such change orders shall not exceed [state amount]. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions -36- 1 I I `I I as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 GENERAL TERMS AND CONDITIONS. 9.1 INDEPENDENT CONTRACTOR. 9.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method except as i required by this Contract. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by j Contractor in the performance of the services hereunder. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, I salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 9.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers'compensation insurance benefits. I 9.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied,to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 9.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3)years after completion or -37- earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 9.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work,without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness. 9.5 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 9.6 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors and/or assigns. 9.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney,which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise constitute a novation. 9.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. 9.9 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable -38- i i i attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 9.10 INTERPRETATION. 9.10.1 Applicable Law. This Contract, and the rights and duties of I the parties hereunder(both procedural and substantive), shall be governed by and construed i according to the laws of the State of California. I 9.10.2 Entire Agreement. This Contract, including any exhibits j attached hereto, constitutes the entire agreement and understanding between the parties II regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements(written or oral). 9.10.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral i representations or modifications concerning this Contract shall be of no force or effect. i 9.10.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 3 9.10.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 9.10.6 Choice of Forum. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into and/or is to be performed in the City of Vernon and that all claims or controversies arising out of -39- li or related to performance under this Contract shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 9.10.7 Duplicate Originals. There shall be two (2)fully signed copies of this Contract, each of which shall be deemed an original. 9.11 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant,term and provision hereof. 9.12 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 9.13 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 44 11. ON W F� aktert�ati�a AF? [ I7 lK �NRS TO N E` O Ctr��1�` 'fY�'E��I (RCOF�Ah1 [ �; II` ffr �t�i .` III tIACItK \ \ IAkFEk 'FO C7Y} i$ �ttt� •Dj`f''? lW(OI '€Il� � R VtfikOC�l ' IQ Ck 'aY PF �R111(), �ttfr� tii�tI V( kOf ,FfOFkO1AI > IU� 15} -40- i i 9.16 NOTICES. Any notice or demand to be given by one party to the other be given in writing and by personal delivery or prepaid first-class, registered or certified mail, 1� addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: If to the Contractor: Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date 1 of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 9.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days'written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractors exclusive remedy for termination without cause. 9.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice,which date shall be no sooner than ten (10)days after the date of the notice. -41 - i i Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. 9.19 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors,travel, lodging, meals and overhead. 9.20 CONFLICT. Contractor hereby represents,warrants and certifies that no member, officer or employee of the Contractor is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. 9.21 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars($25)for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or -42- I i i j permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar i week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code J as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon 1 compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 9.22 LIVING WAGES Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit 1� "D". Upon the City's request, certified payroll records shall promptly be provided to the City. I 9.23 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor ' certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit"E". [Signatures Begin on Next Page]. a -43- IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City [CONTRACTOR'S NAME, a [State and California municipal corporation incorporated in]corporation By: By: Mark Whitworth, City Administrator Name: Title: ATTEST: By: Name: Maria Ayala, City Clerk Title: APPROVED AS TO FORM: Hema Patel, City Attorney -44- II i i i i i 1 EXHIBIT A i i REQUEST FOR PROPOSALS i 1 i a 1 t I f I -45- i EXHIBIT B PROPOSAL II I -46- �I I i 1 iI 1! EXHIBIT C I SCHEDULE i 1 i i 1 qy4 8 -47- II i EXHIBIT D LIVING WAGE PROVISIONS Minimum Livina Wanes: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave,vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay,treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. i I -48- i i EXHIBIT E 1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an"Equal Opportunity I Employer"or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the j performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. i D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. _49_ i EXHIBIT A REQUEST FOR PROPOSALS -50- i i I EXHIBIT B PROPOSAL 1 I -51 - i �xN�B�S G SGNE�v`E ti `; 1 .52 i i EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wanes: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. I Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. j No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay,treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. l -53- EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement,the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer"or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. -54- i l EXHIBIT B I PROPOSAL i f i I � J� 1 i i� I 9 I 17 August 2013 e � w. Off- r: t xa' < N} x so rPsals . e uest Forop RFP i 44: �a Jan Ser ees i k 4, 2S 4 s 5 zt,R`�':�i •_"of x.� 1 ICING w�,-R vi I EN, �,a Con t non N 44Palom o. r WX OW944ffills,C- W 709 ) 60k� � k-3 9 ' rinea afebl iaiht'---'i m 30, 4 wwvc � �febldiqa �com a $ � s° air w s Santa Fe BUILDING MAINTENANCE Table of Contents Technical Proposal CoverLetter.......................................................................... 2 i Company at a Glance..... i Company Background and Experience........................................... 5 i Proposed Chart of Organization&Communication............................ 6 - 8 Scopeof Work....................................................................... 9- 14 I References............................................................................ 15 - 16 Key Staff Qualifications ■ Irineo Nuno......................................................... 17 ■ Gilbert Jaramillo................................................... 18 1 Cleaning Schedule ■ City Hall............................................................. 19 ■ Public Works........................................................ 20 I FORMS ATTACHMENT 1 Proposer Checklist ATTACHMENT 2 Signature Page and Legal Status Acknowledgement of Addenda ATTACHMENT 3 Unit Price Proposal Form ATTACHMENT 4 Affidavit of Non-Collusion Contractor t ATTACHMENT 5 Vendor List Questionnaire Affidavit of Equal Opportunity&Non-Segregation 1 ATTACHMENT 6 Sample Standard Form Contract ADDENDUM No. 1 i BUILDING MAINTENANCE 1 June 4,2015 City of Vernon Attention: Samuel Kevin Wilson,P.E. Director of Community Services and Water 4305 Santa Fe Avenue, Vernon, CA,90058 Re: Request for Proposals for Janitorial Services for the City of Vernon i j Dear Samuel, i Santa Fe Building Maintenance respectively submits this proposal for Janitorial Service for the subject services and supplies indicated,with full knowledge and understanding of the terms and conditions of the services to be performed. We acknowledge the receipt of all addenda, as well as having the ability and financial commitment to fulfill the requirements specified in the RFP Janitorial Services for the City of Vernon facilities. In addition we certify our response onse is not made in the interest or on behalf of any person not � named therein;we have not directly induced or solicited any person to submit a false of misleading proposal or to refrain from proposing. All information submitted including forms and applications were completed to the best and as accurate to our understanding. Furthermore the bid shall remain valid for a period no less than 90 Days from the date of submittal. i Santa Fe Building Maintenance as been providing janitorial service to Southern California cities since 1975. Our experience and the ability to manage our level of work, sets us apart from most companies. We have a history of working effectively with counties and government facilities, and are a trusted provider of high quality janitorial services. a The following personnel are authorized to represent Santa Fe in any business conducted with the city,Irineo Nuno (General Manager) and Gilbert Jaramillo (Accounts Supervisor),however Irineo Nuno is the only individual authorized to sign on behalf of Santa Fe Building Maintenance and to bind a contract. I can be contacted by telephone or by email: Santa Fe Building Maintenance 15644 Palomino Drive Chino Hills,CA 91709 Tel: (909)606-2756 Fax: (909)606-6469 E-mail: Irineogsantafebldmaint.com We look forward to the opportunity of becoming a trusted and valued partner for the City of Vernon. i Sincerely, �Irineo Nuno i General Manager t 2 i Santa Fe BUILDING MAINTENANCE i I Name: Santa Fe Building Maintenance I i j Address: 15644 Palomino Dr. Chino Hills,CA 91709 Telephone: (909)606-2756 / 1 (877) 782-323 Toll Free i - Fax: (909) 606-6469 Wehsite: www.santafebldmaint.com i Legal Status Sole Proprietor Inception year: 1978 Year in Business 36 I - Firm Size 45 Full time Employees Certifications Certified Small Business by the State of California Department of General Services a Services: Professional Cleaning Services a Office Hours 9:OOam to S:OOpm Service Hours Services run 24 hours 7 Days a week s Service Areas: ■ San Bernardino County ■ Orange County Riverside County 3 ■ Los Angeles County ■ Ventura County bP ■ San Diego County n 7 S i Client Sectors: ■ Government Facilities ' Transportation ' ■ Commercial Buildings • Industrial& Manufacturing ■. Private Facilities ■ Entertainment. ■ Healthcare Facilities ■ Banking&Financial Services 3 Santa Fe i ° BUILDING MAINTENANCE I Building Types: Offices,Libraries, City Halls,Factories, Schools, Churches, Shopping Centers,Court Buildings, Warehouses,Transport,Public& Private Government Facilities, along with other types. General Services: ■ Cleaning Service ■ Floor Maintenance Services ■ Window Cleaning Services ■ Carpet Cleaning Services ■ Blind Cleaning Services ■ Carpet Steam Cleaning Services ! Special Service: Pressure Washing Service Solar Panel Cleaning 24 hour Emergency Janitorial Services Located on 15644 Palomino Dr. Chino Hills, CA 91709, Santa Fe Building Maintenance has been conducting its business of providing professional janitorial services for over 35 years by a sole proprietorship. This is the main office in which costumer service,sales & marketing, and administrative efforts are conducted, as well as the enforcement and administration of the contractual performances as indicated and governed by applicable federal, state&local laws and regulations. With over three decades of experience, we have developed a clear understanding of the specific requirements and objectives of quality janitorial services. Santa Fe Building Maintenance is a full service building maintenance company. We specialize in janitorial services, including: carpet&floor cleaning, interior&exterior window cleaning, upholstery cleaning,pressure washing, among other cleaning services. Santa Fe Building Maintenance standards are kept high with our unique personal training of each employee and our dedication to service our client needs Santa Fe's mission is to add value to the organizations we serve. This commitment is exemplified by our intensive employee-training curriculum that emphasizes Total Quality 3 Management(TQM). Our training programs ensure that all employees develop a proactive attitude,role and work emphasis focused on customer satisfaction. In addition, Santa Fe is dedicated in developing and utilizing the most up to date cleaning procedures along with the newest technological equipment,as well as automating many manual procedures in order to improve each of its' employee's productivity in cleaning. l 4 I anta Fe 1-70 : BUILDING MAINTENANCE • " ' 4 z a All 01. a Santa Fe Building Maintenance is a small,independently women owned Jw.� .gr ' business,which provides professional cleaning services to various privately owned companies and government facilities. Since its ' establishment in 1978 Santa Fe Building Maintenance has been a choice _ provider of quality services for government and private companies j throughout Southern California for almost half a century. With its strong connection to Southern California, Santa Fe currently services The San Bernardino County 303 Building for which has been providing services since 2007, and other prominent clients such as Rancho Cucamonga Superior Courthouse, Orange County Public Libraries, City of La Quinta, among others. (Please refer to the "Reference"section of this package for more information) Santa Fe Building Maintenance currently employs more than 75 dedicated, professional supervisors and maintenance personnel, who are capable of meeting the client's every demand and quality standards. Under the current management, innovation and entrepreneurial leadership have allowed the company to grow into a thriving, quality maintenance service provider. One of Santa Fe's strengths it's in depth management and administrative support for its field personnel. This support has created a trained loyal workforce with the skills to provide quality service that is consistent and dependable. I Santa Fe currently services and provides professional custodial services to more than 1 million square feet of government facilities and of private commercial office space daily. Santa Fe prides its self in that it has never been debarred from a contract and that no contract has ever been canceled due to the lack of quality of its services. The company management staffs,with over 50 plus years of combined experience in the janitorial and maintenance field,help design the techniques,procedures and approach of all work plans. They implement their experience along with a previously written plan of approach and procedures to enhance and ensure that all facets of a current project are successfully completed on a timely manner. While there are currently several companies that provide janitorial services, Santa Fe distinguishes from the others on the professionalism and experience that Santa Fe requires from all its' field employees, office staff, and supervisors. Being a small business,we put greater care an emphasis on the quality of our work and the supervision of our employees. What differentiates Santa Fe from the competition is our i commitment to provide more than just"a service"to our clients. Santa Fe Building Maintenance has the financial capability and is currently in good financial standing, as there are no pending mergers,no bankruptcy, no pending litigations, and no office closures. We have a history of working effectively with counties and government facilities, and are a trusted provider of high quality janitorial services. Santa Fe complies with all federal, state and city, labor laws that may pertain to our kind of work. We fully understand the goal that the City of Vernon has set for this project 5 f Santa .fie yy BUILDUNG t MAINTENANCE and are fully aware of the specifications. We understand that not all projects are the same,this is why, here at Santa Fe,we are fully committed and determine to do the best of our abilities to make this project another success. Santa Fe Building Maintenance will support its staff providing services for the City of Vernon, via the following guide of communication I s, r Santa Fe BUI MAIN DIN E Santa Fe Building Santa Fe Building Maintenance Maintenance Management Contract Administrator: Support Irinco Nuno . Logistics&Supply Training f Project&Account • Quality Control Supervisor: • Operational Management jGilbert Jaramillo • Human Resources 1 City of Vernon . Emergency Response i Assign Representative • Account/Contract Supervisor s i Cleanins Crew Specialty Cleaning Crew Personnel who will perform all the Daily Services Personnel who will perform all the Monthly, for the City of Vernon Quarterly and Yearly Special Services for the City of Vernon • Maria Rodriguez-Janitor • Pedro Rodriguez-Janitor • Eduardo Flores-Floor, Window&Carpets • Ana Silvia-Janitor Specialist • Felipe Rojas-Janitor 6 Santa Fe BUILDING MAINTENANCE Following the above guide of communication flow chart, Santa Fe Building Maintenance will provide cell-phone numbers of project supervisor(s)and contract administrator(s),to the City of Vernon assigned representative. i I The company field communication will be conducted as follows: i j1. Santa Fe's project supervisor and/or office personnel will contact Lead janitor in i person or via cell-phone when face to face interaction is not possible. i j 2. Lead janitors will pass on orders to rest of field personnel and report to Project Supervisor. i ' (Note: For emergency purposes all employees must provide a home-phone or cell-phone number where themselves or a family member can be reached while on or out of work site.) I To ensure that a proper line of communication is kept with all critical field employees, Santa Fe Building Maintenance provides company cell-phones to all Supervisors,Management personnel and Day-Porters. I The company field communication will be conducted as follows: 1. Santa Fe's Office will contact Project supervisor via company provided cell-phone. 2. Project supervisor will contact field personnel(Day-porter/Nigh Cleaning Personnel)in person where possible. and✓or i 3. Project supervisor will contact field personnel via their personal cell-phone when personal interaction is not possible. s 2.Project supervisor will contact field personnel in person when possible. 9?? i I I 1 0 ma`s 's o Santa Fe BUILDING 1.Office will contact MAINTENANCE 3.Project supervisor will Project Supervisor via cell-Phone contact field personnel via their personal cell-phone 3 when personal interaction ' � Santa re is not possible. 909 ll'e BUILDING r S.l MAINTENANCE • ''�I� ' � I11 \If J I 7 ,a.nta Fe BUILDING MAINTENANCE Effective communication is one of the most important factors contributing to the success of a project. Cell Phones& Smart Phones are used by Santa Fe Building Maintenance as the main system to communicate between onsite cleaning crews, shift leads and management,the office email, telephone and fax numbers are also made available to the field staff in order for them to communicate with management, although face to face interaction between management and field crews is always encouraged. This mode of communication will also be made available to the City of Vernon. Cell phone numbers and emails to the Account Supervisor and Contract Administrator will be made available to the City Designated Representative once contract is awarded. The following steps will help ensure that constant and effective communication is accomplished with the City of Vernon. Meetings Santa Fes' account Supervisor will meet with the City Designated i Representative upon request or upon a schedule already set and mutually agreed to.Meetings in particular are often the most effective way to effectively communicate with customers as well as to distribute information to project staff. Ongoing Service-(telephone calls,email,voicemail) { Occasionally our main office staff may call the City Designated lRepresentative to check and ensure service satisfaction. Our client satisfaction is important in continuing to provide a great experience and good I customer service. I Company Reports Reports will be used to analyze the performance of services being provided and the performance of employees. These reports will allow Santa Fe to collect important data such as quality of work,supply inventory and employee performance. The Reports would allow Santa Fe to improve the services being provided,employee performance and supply purchasing. The following are just some of the information that Santa Fe collects in order to improve and rate performance: • Quality Inspections Reports • Employee Performance Reports • Inventory Reports • Costumer Feedback Contact Us Lastly, if the City Designated Representative ever have issues with the cleaning service or senses a problem,our Main Office staff will be available to discuss his concerns and issues as well as to provide him/her with a solution.Note: Our company website www.santafebldmaint.com is also available for anyone who would like to contact Santa Fe Building Maintenance with regards to any matter. i 8 i Santa Fe BUILDING MAINTENANCE 1 �R Santa Fe Building Maintenance proposes to provide janitorial services to the City of Vernon facilities,has explained and requested in accordance to the specifications listed in the Request for Proposal for Janitorial Services for the City of Vernon. f Santa Fe's approach to meet the required services will be by using the Zone Cleaning Approach. The Zone Cleaning Approach will ensure that all work is performed according to the contract requirements by utilizing a system of cleaning personnel, supervision,reports and logs insuring that the facilities are cleaned an maintained up to or above Santa Fe's and the City of Vernon service standards. The zone cleaning approach is based on realistic goals,responsiveness and understanding of the specifications. Santa Fe will use this approach has it's been very successful with other projects of similar magnitude. The zone cleaning Approach consists of cleaning personnel assigned to a task or an area in the facility. Each team member is responsible for the completion of work on its I assigned tasks or Area. The zone cleaning method has proven to be efficient on this type of situations where multiple facilities at different locations need to be maintained. Benefits of Zone Cleaning Zone cleaning, sometimes called area cleaning or route cleaning involves the assignment of a specific area to a janitor, or in this case a facility. Since the janitor is responsible for all of the cleaning activities in the area, he must be fully knowledgeable in all areas of janitorial work and be familiar with all of the daily tasks required to clean the facility. Equipment to perform work must be available when required and the janitor must know how to operate this equipment effectively. The primary benefit for zone cleaning is the awareness and familiarity of the janitor with every area of the assigned facility, as well as every building occupant. For this reason a janitor can also be an effective security person, since strangers can easily be recognized and directed to their destination, or off the property as needed. The zone cleaner is responsible for every cleaning activity in the assigned area, any failure to provide good quality service can be easily be recognized and corrected since daily services can be attributed to the janitor responsible for that area Given the City of Vernon cleaning requirements, Santa Fe Building Maintenance proposes the following staffing: (1) One Account Supervisor (4)Four General Cleaning Personnel (1) One Specialty Cleaning Staff(Floor& Carpet Care) (1) One Emergency On-call Staff 9 Santa Fe BUILDING i MAINTENANCE In order to meet the City of Vernon cleaning requirements, Santa Fe will provide cleaning services as required on the RFP#Janitorial Services for City of Vernon facilities,which are as follows: TOILET &LOCKER ROOMS: (Includes private toilet rooms) Daily: 1. Sweep and wet mop or scrub floors utilizing a cleaner-disinfectant. 2. Clean and sanitize all fixtures,including metal and chrome surface water closets,urinals,washbasins, shower stalls,mirrors,waste receptacles, shelving,dispensers, door knobs and wall surfaces,utilizing a germicidal detergent solution. 3. Empty waste receptacles and refill service/supplies,paper towel, soap,toilet paper and seat cover dispensers. Empty,clean and disinfect sanitary napkin receptacles;replace soiled bags with new ones. Collect soiled bags in separate containers for disposal. Black trash bags shall be used for regular trash dispensers and clear bags shall be used for recycled materials. 4. Spot-clean other surfaces and dust horizontal surfaces. Weekly: 1. Wet mop and spray buff all resilient floors. 2. Wet wipe the full surface area of all stall partitions, doors, countertops, shelves, and wastepaper receptacles utilizing a multipurpose germicidal cleaner. 3. Prime and treat floor drains with an approved liquid enzyme treatment to reduce odors and gas smells. Monthly: 1. Wet mop and wax all hard and resilient flooring in remaining room areas. Quarterly: 1. Strip and apply four coats of floor finish to resilient floors using a non-slip floor wax. ROOM CLEANING: Includes all office areas, file rooms, conference rooms, kitchens,city council chambers,lounges, health units, and the corridor space adjacent to these areas. 10 i Santa Fe BUILDING i MAINTENANCE I Daily: 1. Empty wastebaskets and remove trash to designated disposal area. Clean washbasins and mirrors, as necessary; supply paper towels where dispensers are provided. Clean the areas used for the collection of solid wastes. Wash or steam clean all cans used for collection of food remnants,inside and out.No chemicals or cleaners shall be used without the prior written consent of the Public Works&Water Superintendent. (Note: Carts and containers used for i the collection and/or storage of waste material shall be of non-combustible or flame resistant construction). j 2. Clean interior of microwaves, sinks,ovens, stoves, refrigerators and coffee- pots. 3. Clean both sides of plate glass within the building i 4. In office areas,file rooms, conference rooms,and lounge areas sweep floors,vacuum carpet and extend the sweep or vacuum to remove obvious dirt from around and under furniture. Remove gum from under desks and workstations. 5. Damp mop and spray buff lounge areas, including kitchens. Weekly: 1. In office areas, file rooms,city council chambers, conference rooms and lounge areas thoroughly dust horizontal surfaces of furniture and all wall surfaces within approximately 70 inches of the floor and vertical surfaces and under surfaces (knee wells, chair rungs,table legs,etc.). Clean glass desktops. Vacuum all carpets. 2. Sweep full floor area. i 3. Spot clean wall surfaces within approximately 70 inches of the floor. Monthly: 1. Wet mop and wax all hard and resilient flooring in remaining room areas: Monthly: 1. In office areas, file rooms,and conference rooms, damp wipe glass in interior office doors,partitions and bookcases. Quarterly: 1. Strip and apply four coats of floor finish to all flooring using a non-slip wax. 11 Santa Fe BUILDING MAINTENANCE i i I MAIN ENTRANCES,MAIN LOBBIES AND MAIN CORRIDORS Daily: I 1. Sweep and damp mop bare floors,and vacuum carpeted floor areas. Clean and polish metal doorknobs,push bars,kick plates,railings and other metal surfaces; clean and polish wood handrails, doors and other wood surfaces; clean spots and marks off walls,dust all surfaces within approximately 70 inches from the floor. I i 2. Damp mop and spray buff all hard and resilient floors. 3. Clean both sides of entrance door glass and glass surrounding entrance doors within reach. I Monthly: 1. All grout lines shall be clean and free of stains and discoloration utilizing j proper cleaning agents and techniques to ensure they remain in pristine i � condition. Quarterly: 1. Clean and polish all door thresholds. 1 2. Strip and apply four coats of floor finish to all hard and resilient floors using a nonslip wax. STAIRWAYS: Three Times Weekly: (Mon-Wed-Fri) 1. Sweep or vacuum stair landings and steps; dust railings and ledges. Monthly: 1. Wet mop or scrub steps,risers and landings; clean glass surfaces and polish bright metal and woodwork. Spot clean walls to a height of approximately 70 inches. PASSENGER ELEVATORS: Daily: 1. Clean all surfaces in the interior of the car,including floor track,and polish bright metal surfaces. Clean exterior surfaces of all doors and frames. 12 Santa Fe © BUILDING I MAINTENANCE DRINKING FOUNTAINS Daily: 1. Clean drinking fountains using appropriate cleaning agents. i STORAGE SPACE/JANITORIAL ROOMS i Monthly: 1. Sweep the full floor area: I i i ENTRANCE I Every Two Months: 1. No less than six times a year, clean and shampoo entrance rugs as required to maintain quality standards. a 1 EXTERIOR WINDOWS i ANNUALLY: 1. The exterior windows of City Hall, Light&Power Building(first floor), Fire Station No. 2, and Petrelli Building shall be cleaned one(1)time annually on the following month: •June MINI AND VERTICAL BLINDS ANNUALLY: 1. Remove from the building premises all mini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and I cords. a j 2. Dust or vacuum all blinds at a 6-month interval from washing cycle. 1 HIGH CLEANING Monthly: 1. Clean surfaces and objects in the building approximately 70 inches or more { from the floor. This includes but is not limited to the wall and ceiling areas, ventilating and air conditioning outlets,transoms, clocks, ceiling moldings, { tops of partitions, overhead pipes,wall fans,pictures,plaques,wall or ceiling 13 i Santa Fe BUILDING MAINTENANCE diffusers, file cases, bookcases,lockers, etc. Damp wipe and dry high surfaces such as transoms,clock glass,picture frames and glass, smudged areas surrounding air grilles, diffusers, etc. Drapes shall be vacuumed in place. MISCELLANEOUS REQUIREMENTS 1. Lights shall be used only in areas where and at the time when work is actually being performed. 2. Mechanical equipment controls for heating,ventilation,and air-conditioning systems shall not be adjusted by the workers. 3. Water faucets or valves shall be turned off after the required usage has been accomplished. 4. Windows shall be closed and lights and fans turned off when not in use. i 5. Organize and train employees to participate in building fire and civil defense drills. i 6. Report fires,hazardous conditions,and items in need of repair to the contracting officer's representative. 7. Lights shall be turned off in each location where nobody is remaining, g Y � ,g, including unoccupied restrooms and offices. Modular and/or Systems Furniture and Upholstered Furniture I Monthly: 1. Thoroughly vacuum to remove embedded dirt and dust. i CARPET SHAMPOOING REQUIREMENTS Weekly: 1. During the week,check and spot clean corridors, lobbies, individual areas, conference rooms, and all other carpeted areas on the floors as needed. Spot clean as per manufacturer recommendation. Bi-Annually: 1. All Carpeted areas in the City Hall,Power Plant offices and Petrelli building will be shampooed following the manufacturer's recommended procedures. 14 Santa Fe BUILDING MAINTENANCE I i Santa Fe Building Maintenance as had a lot of experience working with city,county,and government facilities. Our current customer base provides us with the operational experience and know-how necessary to properly provide all cleaning needs. Santa Fe is aware of what the City of Vernon expects from a service provider and our goal is to meet and exceed those expectations. Below is a list of projects that Santa Fe currently provides janitorial service to: ! San Bernardino County Hall of Records 222 West Hospitality Lane San Bernardino, CA 92415-0022 108,000 Sa Term: 4/01/2013 to 3/31/2016 a Contact Person: Mr. Richard Harper (909) 518-6700 E-mail: Richard.HarperCcDatc.sbcountv.pov I I I i San Bernardino County 303 Building 303 Third St. San Bernardino, CA 92415 108,000 SaFt Term: 4/1/2014 to 3/31/2017 Contact Person: Ms. Tawana Ellison (909) 387-2251 E-mail: tellison@fm.sbcounty.gov 1 City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 1.09,000 SQFt Term: 5/30/2013 to 7/1/2017 Contact Person Steve Howlett (760)777-7090 E-mail: showlett@la-quinta.org 15 Santa Fe BUILDING MAINTENANCE I South Coast Air QualityManagement District I (AQMD) 21865 Copley Drive ! Diamond Bar, CA 91765 302,272 SgFt Term: 3/01/2013 to 2/29/2016 Contact Person I Sylvia Oroz (909) 396-2054 E-mail: soroznagmd.gov I i Rancho Cucamonga Superior Courthouse 8303 N. Haven Ave Rancho Cucamonga, CA 91730-3848 277,945 SgFt Term: 7/01/2013 to 6/30/2016 Contact Person: Ms.Phyllis Facio (909) 841-5992 E-mail: pfacioCcft.sbcountv.gov 3 City of Dana Point 33282 Golden Lantern Dana Point, CA 92629 20,000 SgFt Aprox. Term: 10/17/2012 to 10/31/2015 Contact Person: Mr. Mike Rose (949)248-3535 E-mail: mrose@danapoint.org 16 i Berta Fe BUILDING IrineoMAINTENANCE Ntin - i j 1 Irineo Nuno has been with Santa Fe Building Maintenance for(9)Nine years. Currently Mr.Nuno is the General Manager of Santa Fe Building Maintenance. His experience on the janitorial field goes back for more than 30 years. He, along with Gilbert,will be overseeing the daily operations of the project. The following are the qualifications that make him suitable for this project SKILLS ABILITIES a More recently, Irineo as been certified and tested by Environmental Outsource Inc. on Bloodborne Pathogens,Asbestos Hazard Awareness, and on the Injury&Illness Prevention Program. (Copy of certificates available upon request) i • Proven ability to Managed and Supervise • Window, Floor and Carpet cleaning expert i • Extensive experience in Customer Service, Account Management, i Training, and Cleaning Services. • Skilled in Company Operations, Staff and Product management • Ability to train, motivate and educate employees PROFFISSIONNAL EXPERIENCE Advanced Building Maintenance: 20 years ago Mr.Nuno started his career in the cleaning industry with Advanced Building Maintenance. His first position was as a general cleaner were he learned all the skills that pertain to the janitorial field. Working his way thru the company chain of command,Irineo was promoted to District Supervisor with in a year and was placed in charge of supervising 70 employees and 40 janitorial accounts. Santa Fe Building Maintenance: Currently Mr.Nuno is the General Manager of the company. His hands-on attitude of personally supervising all current accounts with the company has made our supervision and quality control programs one of the best. Although his job does not include doing work on the field,customers would usually see him helping his staff finish a job or supervising a request or trouble call personally, ensuring that the job 1 is done correctly. Although Irineo has work for one company other than Santa Fe,Mr.Nuno has the on the job experience that other supervisors might not have. Through his experience obtained over years working on the janitorial field,he has learned all aspects of the industry and the level of quality customers expect from a cleaning company.In addition to the know-how that Irineo possess, his on the job experience along with Gilbert's management experience would make a success of this project. 17 i Santa ,fie BUILDING j MAINTENANCE i i IGilbertJaramillo - i Account Gilbert Jaramillo has been with Santa Fe Building Maintenance for(4)four years, i currently he is the individual in charge of Account Supervision along with i Personnel Development, more specifically supervisor development(training + Personnel supervisors)for the company. He fully understands the approach to the project and he is committed on doing the best work possible. The following qualifications make him suitable for this project. SKILLS i ABILITIES More recently, Gilbert as been certified and tested by Environmental Outsource Inc. on Bloodborne Pathogens,Asbestos Hazard Awareness, and on the Injury&Illness Prevention Program. (copy of certificates upon request) i i • Skilled in Company Operations and Customer Service • Proven ability in reorganizing and restructuring programs to increase j efficiency • Effective communicator and coordinator in multi-department settings • Ability to train,motivate and educate employees • Constantly seeking new way to improve customer service PROFFS40NNAL EXPERIENCE Merchants Building Maintenance: 1968—1980 Began working as a janitor working his way up the chain of command to District Manager. Duties included customer service,the management of 100 employees,4 District supervisors, and 130 janitorial accounts. Advanced Building Maintenance: 1980—2008 Employed as District Manager,in charge of 8 supervisors in Los Angeles County, Orange County, San Diego County, San Bernardino County and Riverside County. Oversaw the operations of the City of Lakewood,Fullerton,Huntington Park,Bell Flower, Signal Hills, La Habra. Priority Building Maintenance: 2008—2009 Hire as Branch Manager in charge of 4 supervisors and responsible for 150 janitorial accounts. Gilbert is a proven Manager and Supervisor with an impressive record of accomplishments in the management of janitorial accounts and training. In all, Gilbert brings more than 40 years of experience to any janitorial project. His management skills are best to none. We are confident that he is the right person to undertake this current project. 18 City Hall - Cleaning Schedule Basement Ist floor August September October November December 16-Jart 16-Feb. 16--Mar. 16-Apr. 16--Mav 16--Jm1 16-1111y �!,�i■■aaa��■aaaaaaa 2nd Floor August September October November December 16-Jan 16-Feb. 16--Mar. 16--Apr. 16-Mav 16--Jun 16-July �. . ■■aaaaa■�■aa ■�■�a®tea®�■�®tea 3rd Floor August September October November December 16_!an 16-Feb. 16--Mar, 16--Apr. 16-Mav 16-Jun 16-July . �■aa�a■■aaaaaa ■ Cleaning Schedule PeErelli :, . ®aaaaa�saaaa Public Works Auuusl September October November December 16,tan 16-Feb. 16-Mar. 16-Apr. 16-Mav 16--Jun 16-July Light& Power Aunust September October November December 16,1an 16-Feb. 16-Mar. 16--Apr. 16-Mav 16 Jun 16-July i ATTACHMENT NO. 1 i PROPOSER'S CHECK-L,IST I TO THE PROPOSER: The following list is provided for the convenience of both you and the City and help eliminate errors and omissions which nmay render your proposal unacceptable. Please check all appropriate boxes and submit with your proposal. L� ATTACHMENT NO. 1 -PROPOSER CHEC`Ii LIST L1Y ATTACHMENT NO.2-SIGNATURE PAGE AND LEGAL STATUS I j ATTACHMENT NO. 3-UNIT PRICE PROPOSAL FORM ILQ ATTACHMENT NO.4-AFFIDAVIT OF NON-COLLUSION FORM ATTACHMENT NO. 5-VENDOR LIST QUESTIONNAIRE FORM { ATTACHMENT NO. b- SAMPLE STANDARD FORM CONTRACT Proposals must submit SEVEN(7) COPIES AND ONE (1)ELECTRONIC COPY of all proposal documents. All proposals shall be enclosed in sealed envelopes,distinctly marked s"`RFP FOR JANITORIAL SERVICES" and the proposer's name and address appearing on the outside. - 19- i ATTACHMENT NO.2 SIGNATURE PAGE,LEGAL STATUS AND ACKNOWLEDGEi4ZENT OF ADDENDA U signed b an authorized signatory with Iris/her usual wet ink si rat-ue. � The Proposalshall a srg y g r5' gr An authorized signatory shall be one of the following: 1 (1) Sole Proprietorship: An individual shall sign. (2)Partnership(General or Limited): A partner shall sign for a partnership; the partner shall give the naives and addresses of all partners. 4 (3)Corporation: An officer shall sign for a corporation. The corporate name must be attested by the corporate seal. The navies and titles of the president and all officers of the corporation who are authorized to sign the Proposal Forms must be listed in an authenticated ineturrbency certificate signed by the corporate secretary. A signature other than a.corporate officer's will be accepted only if an authenticated incumbency certificate and corporate $ resolution conferring signature authority is attached. (4)Joint Venture: Proposers shall use the appropriate section(s) listed above based on their applicable situation. The undersigned certifies that lie/sire is an official legally authorized to bind his/her fh-ni and to enter into a contract should the City accept this proposal. Proposal by Santa Fe Building Maintenance (Name of Firrn) Legal status of proposer: Please check the appropriate box Corporation State of Incorporation Partnership List Narnes DBA State full name DBA -20 - i i j y Other Explain Sole Proprietorship { Guadalupe Medina DBA Santa Fe Building Maintenance_ I Respectfiilly submitted: Irineo Nuno 1 SiL4iat u•e of Proposer Title General Manager _ c (Authorized Signature) Address 15644 Palomino Drive City Chino Hills State CA Zip 91709 1 1 Telephone No. ( ) (909) 606-2756 i 16 00009392 2/28/2016 License Number: Date of Expu•atioYi: 1 i! Date: 0 _ f (SEAL- if Proposal is by a corporation) ADDENDUM NO. PROPOSER'S INITIALS l. Addendum# 12. 3. -21 i INCUMBENCY CERTIFICATE Print legibly the names and title of the president and all officers of the Company who are authorized to sign the Proposal Fors: PRESIDENT'S AND OFFICERS' NAMES: TITLE: Guadalupe Medina Owner a Irineo Nuno General Manager The undersigned hereby certifies to the City of Vernon that he/she is the duly elected and acting 1 Secretary of Santa Fe Building Maintenance (the "Colupauy"), and that, as such, he/she is authorized to execute this Incumbency Certificate on behalf of the Company, and $uflier certifies that the persons rimed above are the duly elected,, qualified and acting officers of the Company,holding on the date hereof,the titles and positions set forth opposite their names and are authorized to sign the Proposal Forms. IN WITNESS WHEREOF, the undersigned has executed this Incumbency Certificate this�_day of J u A L 20 16 1 Tinto Nvno Print Secretary's Name I '!§&o�etary's Signature i I -22- i ATTACHMENT NO.3 UNIT PRICE PROPOSAL FORM I I INCLUDES ALL MISCELLANEOUS SERVICES FACILITY AREA IN SQUARE FEET MONTHLY COST I� City Hall Basement 5,250 $ 731.00 I City Hall First Floor 9,800 $ 1,211.00 City Hall Second Floor 27,600 $ 35865.00 City Hall Third Floor 7,876 $ 1,147.00 Petrelli Builduig 3,058 $ 464.00 Light and Power 3,162 $ 464.00 1i Public Works Building 3,895 $ 561.00 TOTAL COST PER MONTH $ 8,443.00 Leonis Building 2,812 $ 396.49 (Optional Item) TOTAL COST PER MONTH $ 8,839.49 INCLUDING OPTIONAL ITEM For proposal comparison purposes, the total cost with optional items will be used. Subnlittedby: Santa Fe Building Maintenance Address: 15644 Palomino Dr. Chino Hills, CA, 91709 Signature: -23- I MISCELLANEOLTS JANITORIAL SERVICES(Not Additional Cost Items) I The following items shall be deducted from the base proposal in the event the City determines, in its sole opinion, that the below scheduled maintenance events are not j necessary. Modifications in Scope of Services must be authorized by City of Vernon prior to the commencement of work. In weighing proposals, the City will make that calculation based upon proposed price,before any deductions. I 1. FLOORING: Ship and apply four (4) coats of floor finish to flooring. Flooring costs shall be inclusive to Item Nos. three (3)though twenty (2Q). • ITEM 1: Ceramic Tile: I Cost Per Quarter Per Square Foot: 0.09 i j • ITEM 2: Vinyl Tile: Cost Per Quarter Per Square Foot: 0.100 • ITEM 3: Rubber Tile: I Cost Per Quarter Per Square Foot: 0.10¢ i 1 2. ENTRANCE AND ELEVATOR RUGS • ITEM 1: Clean and shampoo entrance and elevator rigs as required to maintain quality standards. This task shall be performed not less than six times a year. Cost Bi-Monthly: $ 25.00 i i 3. CITY HALL FIRST FLOOR-WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cost Annually: $ 25.00 • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily: $ 25.00 4. CITY HALL FIRST FLOOR-MINI AND VERTICLE BLINDS • ITEM 1: Remove from the building premises all 1T11Ini and vertical blinds and wash. Blinds shall be rettmied and hung within 3 working days. Clean tapes and cords. 24 I i i Cost Annually: $ 25.00 • ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual inntervaI fi•orn washing cycle. Both sides of blind slats shall be fi•ee of dust. Cost Bi-Annnually: $ 25.00 5. CITY HALL FIRST FLOOR-CARPET SHAMPOOING REQUIREMENTS (Bi- Annually) ITEM 1: All carpeted areas shall be shampooed as per the manufacturers reconunended procedures. 1 Cost Bi-Annually: $ 80.00 6. CITY HALL SECOND FLOOR-WINDOWS AND GLASS 3 • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. { Cost Annually: $ 19000.00 I • ITEM 2: Interior Glass: Wasln all interior windows leaving no visible streaking. i Cost Daily:$ 50.00 7. C'ITY HALL SECOND FLOOR-MINI AND VERTICLE BLINDS • ITEM l: Remove fiom the building premises all mini and vertical blinds and wash. Blinds shall be returned and lnnung within 3 working days, Clean tapes and cords. Cost Annually:$ 50.00 • ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be fi•ee of dust. Cost Bi-Annually: $ 5 0.00 I 8. CITY HALL SECOND FLOOR-CARPET SHAMPOOING REQUIREMENTS (Bi- An wally) • ITEM 1: All carpeted areas shall be shampooed as per the manufacturers recommended procedures. -25- i Cost Bi-Amorally:$ 321.00 9. CITY HALL THIRD FLOOR- WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. i CostAnimally: $ 1,000.00 • ITEM 2: Interior Glass: Wash all 'ulterior windows leaving no visible streaking. i Cost Daily:$ 50.00 I i I 10. CITY HALL THIRD FLOOR-MINI AND VERTICLE BLINDS i j • ITEM 1: Remove fi-oin the building premises all nnini and vertical blinds and wash. Blinds shall be returned and hung within 3 working days. Clean tapes and COI'CIS. i Cost Arnrually:$ 5 0.00 • ITEM 2.: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval fi-onl washing cycle. Both sines of blind slats shall be free of dust. i Cost Bi-Annually: $ 50.00 11. CITY HALL THIRD FLOOR- CARPET SHAMPOOING REQUIREMENTS (Bi- Ann wally) • ITEM 1: All carpeted areas shall be shampooed as per the manufacturers recommended procedures. Cost Bi-Annually: $ 200.00 i i ya 3 1 -26- I 12. PETRELLI BUILDING -WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cast Annually: $ L000.00 i • ITEM 2: Interior Glass:Wash all interior windows leaving no visible.streaking. { Cost Daily: 13. PETRELLI BUILDING-MINI AND VERTICLE BLINDS i 1 • ITEM 1: Remove from the building premises all inirri and vertical blinds and wash. Blinds shall be retxuned and hmng within 3 working days. Clears tapes and cords. Cost Annually: $ 50.00 • ITEM 2: (Bi-Annually) Dust or vacmun all blinds at a bi-annual interval fi•onn washing cycle. Both sides of blind slats shall be fi-ee of dust. I Cost Bn-Annually: $ 50.00 1 14. PETRELLI BUILDING-CARPET SHAMPOOING REQUIREMENTS(Bi-annually) • ITEM 1: All carpeted areas shall be shampooed as per the manufacturers recommended procedinres. , Cost Bi-Annually: h0.00 15. GAS &ELECTRIC -WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cost Annually: $ 100.00 • ITEM 2: Interior Glass:Wash all interior windows leaving no visible streaking. Cost Daily: 50.00 -27- i I i 16. GAS &ELECTRIC-MINI AND VERTICLE BLINDS • ITEM 1: Remove fi-oin the. build ing premises all rnunr and vertical blinds and wash. Blinds shall be returned and h-ung within 3 working days. Clean tapes and icords. i Cost Annnually:$ 25.00 • ITEM 2: (Bi-Armually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be free of dust. i Cost Bi-Annually: 25.00 f; 17. PUBLIC WORKS BUILDING-WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leavingno visible streaking, g Cost Annually:$ 50.00 • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily:$ 50.00 i 18. LEONIS BUILDING-WINDOWS AND GLASS • ITEM 1: Exterior Glass: Wash all exterior windows leaving no visible streaking. Cost Armually: 50.00 • ITEM 2: Interior Glass: Wash all interior windows leaving no visible streaking. Cost Daily:$ 50.00 19. LEONIS BUILDING-MINI AND VERTICLE BLINDS • ITEM 1: Remove from the building premises all mini and vertical blinds and wash. Blinds shall be retuned and lung within 3 working days. Clean tapes and cords. Cost Annually'$ 25.00 • ITEM 2: (Bi-Annually) Dust or vacuum all blinds at a bi-annual interval from washing cycle. Both sides of blind slats shall be free of dust. i I -28- I i i I Cost Bi-Annually: 25.00 20. LEONIS BUILDING - CARPET SHAMPOOING REQUIREMENTS(Bi- Aiuivally) 1 • ITEM 1: All carpeted areas shall be shampooed as per the niamlfacturers recoilmiended procedures. Cost Bi-Aiiuiially: $ 25.00 I i i I 1 i I i -29- i I I ATTACHMENT NO. 4 AFFIDAVIT OF NON-COLLUSION CONTRACTOR 1 i STATE OF C,ALIFOMWA )SS COUNTY OF� LOS<41VGELES} Irineo Nuno , being j first duly sworn deposes and says that tie/she is General Manager (Insert"Sole Ommef%"Partner',"President","Secretary",or other proper title) of Santa Fe Building Maintenance f (Lisert name of Proposer) I who submits herewith to the City or Vernon a proposal; i That all statements of fact in such proposal are true.; I That such proposal was not inade in the interest of or on behalf of any undisclosed person, partnership,company, association,organization or corporation; That such proposal is genuine and not collusive or shain; That said proposer has not,directly or indirectly by agreement, coiimnuiication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon,or of any other proposer or anyone else interested in the proposed contract; and fiirther That prior to the public opening and reading of proposals, said proposer: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said proposer or anyone else would subinit a false or sham proposal, or that anyone should refrain froin proposing or withdraw his/her proposal; c.Did not,in any manner, directly or indirectly seek by agreeient, communication or conference with anyone to raise or fix the proposal price of said proposer or of anyone else, or to raise of fix any overhead profit or cost element of this proposal price,or of that of anyone else; d. Did not,directly or indirectly, subiiut his proposal price or any breakdown thereof, or the contents thereof., or divulge infoiYnation or data relative thereto, to nay corporation,partnership, company, association,organization, or to any member or agent thereof, or to any individual or -30- i I I jgroup of individuals,except the City of Vernon, or to any person or persons who have a partnership or other financial interest with proposer ui his/her business. I certify wider penalty of pew"ury that the above infowYnation is correct By: Irineo Nuno — I � Title: General Manager Dare: y� -(Q 15 I 3 i i -31 - �I I i ATTACHMENT NO. 5 I CITY OF VERNON I 4305,Santa Fe Avenue,Vernon,California 90058 i Telephone (323)583-8811 ! Vendor List Ouestionnaire 1 Affidavit of Eaual Opportunity R Non Sep-regation {f 1 In order to be placed to the City's vendor list and be eligible to receive City business, you must provide the following infornnation except wliere indicated as"optional". By submitting this form i you are declaring tinder penalty of perjury under the laws of the State of California and the laws of the United States that the information is true and correct. Furthermore, you are certifying that f your f-unn will adhere to equal opportunity employment practices to assure that applicants and employees are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex or age. And, your firm does not and will not maintain or provide for its { employees any segregated facilities at any of its establishments, and that it does not and will not pens it its employees to perfoini their services at any location, iinder its control, where segregated facilities are maintained. Santa Fe Building Name of Company Maintenance Business Telephone (909) 606-2756 E { Address 15644 Palomino Dr. Fax (909) 606-6469 Number city Chino Hills (optional) StateCA zip 91709 Contact Person Irineo Nuno E-mail Addresslrineo@santafebldmaint.com Tax ID Nunnber (or Social Security Number) 55-0806687 Remit Address (if different) Same Address I Please state clearly and concisely the type(s)of goods and services your company provides: Janitorial Services. I ' i -32- i ATTACHMENT NO. 6 SAMPLE STANDARD FORM CONTRACT SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR[BRIEF DESCRIPTION OF SERVICES] COVER PAGE Contractor: [insert name of contractor] Responsible Principal of Contractor: [insert name,title] Notice Information - Contractor: [insert name of contractor] [insert street address] [insert city, state,zip code] Attention: [insert name, title] jPhone: [insert phone number] j Facsimile: [insert fax number] ] Notice Information -City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile: [insert fax number] Commencement Date: [insert commencement date] Termination Date: [insert termination date] Consideration: Total not to exceed $[insert amount] (includes all applicable sales tax); and more particularly described in Exhibit C i Records Retention Period Three(3)years, pursuant to Section 9.19 -33- i i i i I I SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR[BRIEF DESCRIPTION OF SERVICES] THIS Contract is made between the City of Vernon ("City"), a California charter City and i California municipal corporation ("City"), and [Contractor's Name], a [State incorporated in] corporation "Contractor" I The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on i 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated Exhibit"A", and Contractor's proposal to the City ("Proposal")dated , Exhibit"B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shalt be performed according to the standards then prevailing in the [state] profession. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be -34- i 1 fully qualified and authorized or permitted under State and local law to perform such services i and shall be subject to approval by the City. 4.0 TERM. MUST SELECT AN ALTERNATIVE AND REMOVE THE LANGUAGE OF ALTERNATIVE NOT SELECTED EAlternative 1,for services where there Is a deliverable or specific schedule set forth in the speciflcations/RFP or in the bidlproposal]. The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit i [Alternative 2,for services of a continuing nature]. The term of this Contract shall commence on [state date], and it shall continue until [state date which may not be more than ` three years from the commencement date], unless terminated at an earlier date pursuant to I the provisions thereof. I 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are I comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit"C". 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed [state amount] without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction,telephone, air travel, auto rental, subsistence, and all related costs and expenses. 6.0 PAYMENT. -35- i f i i 6.1 As scheduled services are completed, Contractor shall submit to the i City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. I6.2 Each such invoice shall state the basis for the amount invoiced, including I a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor.shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the i ' immediately preceding calendar month. 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. I p p pY 6.5 City will pay Contractor the amount invoiced within thirty(30)days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, f 1 authorized costs and.authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. MUST SELECT AN ALTERNATIVE AND REMOVE THE LANGUAGE OF ALTERNATIVE NOT SELECTED. [alternative A] There is no change order authority provided in this Contract. [alternative 81 The Director of the I Department of[identify department] shall have the authority to issue change orders for administrative and non-material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due Contractor under this Contract, but the combined total amount of such change orders shall not exceed [state amount. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions -36- i as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 GENERAL TERMS AND CONDITIONS. # 9.1 INDEPENDENT CONTRACTOR. t 9.1.1 It is understood that in the performance of the services herein i provided for, Contractor shall be, and is, an independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method except as required by this Contract. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 9.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 9.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 9.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications, computer tapes,floppy disks and printouts, studies, memoranda, computation sheets and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3)years after completion or -37- f I I earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. I I 9.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without i additional cost to the City. The performance or acceptance of services furnished by Contractor I shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness. 9.5 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. I 9.6 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors andlor assigns. I 9.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sale discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise t J constitute a novation. i! 9.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without i limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. 9.9 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable -38- I attorney's fees, costs and necessary disbursements in addition to any other relief to which such i party may be entitled. i 9.10 INTERPRETATION. i 9.10.1 Applicable Law. This Contract, and the rights and duties of the parties hereunder(both procedural and substantive), shall be governed by and construed according to the laws of the State of California. 9.1U Entire Agreement. This Contract, including any exhibits 1 i attached hereto, constitutes the entire agreement and understanding between the parties i regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). j I 9.10.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 9.10.4 Seyerability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 9.10.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 9.10.6 Choice of Forum. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into and/or is to be performed in the City of Vernon and that all claims or controversies arising out of -39- I I or related to performance under this Contract shall be submitted to and resolved in a forum I within the County of Los Angeles at a place to be determined by the rules of the forum. i 9.10.7 Duplicate Originals. There shall be two (2)fully signed copies of this Contract, each of which shall be deemed an original. 9.11 TIME OF ESSENCE. Time is strictly of the essence of this ! contract and I 1 each and every covenant, term and provision hereof. 9.12 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has j been duly authorized. j 9.13 ARBITRATION OF DISPUTES. Any dispute for under t $25,000 i arising out of or relating to the negotiation, construction, performance, non-performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. FRISK MANAGEMENT TO COMPLETE SECTIONS 9.14 AND 9.15 9 14 INbI MNITY [INSERT INDEMNITY AND INSURANCE AEQUtREMENTS HERE (alterrlatly . TYPE I (CITY RISK TRANSFERS TO CONTRACTOR), alternative B: TYPE It (NO TRAI�ISEER OF RIS tire C:TYPE III (C K), alterrtatlONTRACTOR RISK TRANSFERS TO CITY),titter AU 4 l] TYPE IV(CONTRACTORS WHO CONTROL CITY PROPERTY);alteMative E: TYPE V(DESIGN PROFESSIONAL TYPE SERVICES). -40- i 9.15 . INSURANCE. 9.16 NOTICES. Any notice or demand to be given by one party to the other i be given in writing and by personal delivery or prepaid first-class, registered or certified mail, f addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. 1 If to the City: i If to the Contractor: Any such notice shall be deemed to have been given upon delivery, if personally i j delivered, or, if mailed, upon receipt or upon expiration of three (3)business days from the date i of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 9.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon i fifteen (15)calendar days'written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 9.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice,which date shall be no sooner than ten (10)days after the date of the notice. -41 - I i I 1 Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for I I services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of(1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2)costs incurred by the City in obtaining substitute performance. I i 9.19 MAINTENANCE AND INSPECTION OF RECORDS. j The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. it The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract. 3 t The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City)expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 9.20 CONFLICT. Contractor hereby represents, warrants and certifies that no i member, officer or employee of the Contractor is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. 9.21 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars($25)for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or -42- i i permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar i week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/z times the i basic rate of pay. a 9.22 LIVING WAGES Contractor, and any Subcontractor(s), shall comply with jthe City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. i 9.23 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal I Employment Opportunity Practices provisions as set forth in Exhibit"E". (Signatures Begin on Next Page]. -43 - I IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. f City of Vernon, a California charter City [CONTRACTORS NAME, a [State and California municipal corporation incorporated in] corporation By: By: Mark Whitworth, City Administrator Name: Title: ATTEST: i By. j Name: Maria Ayala, City Clerk Title: APPROVED AS TO FORM: Hema Patel, City Attorney -44- i li i I IA _. PUBLIC WORKS, WATER&DEVELOPMENT SERVICES 4305 Santa Fe Avenue, Vernon,California 90058 Telephone(323)583-8811 Fax(323)826-1435 j i May 13 2015 I NOTICE TO BIDDERS—ADDENDUM NO. 1 TO THE REQUEST FOR PROPOSAL i FOR JANITORIAL SERVICES This notice shall be considered as Addendum No. 1 to the Request for Proposal for Janitorial Services.Items(1 through 10)shall be included as part of the"Qualifications&Criteria Section"of the Request for Proposal. The additional costs for Items (I1 through 13)shall be incorporated in Attachment No.3, Page No. 23,in the City Hall Second Floor Monthly Cost column of the Request for Proposal, 1. A schedule for monthly and yearly cleaning activities will be provided by contractor. 1 j2. The contractor shall provide a call out list with regularly updated telephone numbers to handle I emergency or unusual janitorial services. 3. The contractor shall provide a schedule for monthly and yearly cleaning activities. 4. The contractor shall provide a list of all employees and their supervisors who may work upon the City's premises. All of contractor's employees must successfully complete a background investigation by the Vernon Police Department,which includes a fingerprint Live-Scan process.The Live-Scan cost will be incurred by the contractor. 5. The following products will be supplied by the City of Vernon for janitorial use and dispensing: Urinal tabs,paper towels,toilet paper,seat covers,liquid hand soap,trash bags and sanitary napkins. All other products required to perform the janitorial service as outlined shall be supplied by the contractor. The City reserves the right to specify the cleaning products to be supplied by the contractor. 6. A log sheet shall be provided by the City for each facility. All employees assigned by the contractor to work in each facility shall sign in at the beginning of the work shift and upon leaving that facility, 7. It is mandatory that the contractor have a night-time supervisor on duty 7 days a week and that a pager be issued to him/her. The pager number must be given to the Building Maintenance Foreman EXc[usivery industriar i i or his designee on the effective elate of the Agreement or before services under the Agreement are i performed. 8. During and after janitorial services are performed,the contractor's employees shall enter and leave only through specified locations.Contractor's personnel shall check to be sure all doors and windows are closed and locked, so that the area is left in a secure condition to protect against unauthorized entry. i at all times while performing work in City facilities.The name of the company Logo and the words "Janitorial Service" in large White letters must appear on the uniform. Each employee shall have a picture identification nametag with company name pinned on front of uniform at all times. i �{ 10.The work hours for each area shall be as follows: I a)2nd and 3rd Floors: Monday through Thursday 1730—0400 hours. b)1 st and Basement Floors(Monday through S-Lmday)and Petrelli Building:Monday through Friday 1730—0400 hours. 1 c)Petrelli:Monday through Friday 0700— 1530 j 11. City Hall Second Floor Exterior Patio: wipe down tables,remove trash and debris (daily).Mop floor(weekly). I 12. City IIall Second Floor West Exterior Bridge: remove debris from concrete ledges; sweep walkway,and vacuum entry doormat(daily). 13. City Hall Second Floor East Exterior Bridge: remove debris from concrete ledges; sweep walkway,and vacuum entry doormat(daily). Bidders shall acknowledge receipt of this with their completed bid package.If you have any questions, please call Scott B.Rigg of my staff at(323)583-8811 extension 279. Sincerely, ti Samuel Kevin Wilson,P.E. Director of Public Works,Water and Development Services SKW/sr G I EXHIBIT C LIVING WAGE PROVISIONS I Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. I No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an.action:in Superior Court against an employer for back pay, treble damages for willful violations.and attorney's fees, or to compel City officials to terminate the service contract of violating employers. i 18 August 2013 I 1 i i j EXHIBIT D EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS 1. A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicantsfor . employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. 1 1 C. Contractor agrees that it shall, if requested to do so by the City, certify that it has.not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, j through its awarding authority, provide copies of all of its records pertaining or relating.to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or, permit any act which is prohibited by law. 1 Y. 19 August2013 i i RECERV Y RECEIVED MAY 2 7 t'010 MAY 2 1 2015 CITY CLERK'S OFFICE °e"'"° CITY ADMINISTRATION STAFF REPORT - �- PUBLIC WORKS, WATER & DEVELOPMENT SERVICES" DEPARTMENT DATE: June 2, 2015 TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson irector of Public Works, Water and Development Services Department RE: Adoption of an Ordinance Related to an Expedited Permitting Procedure for Small Residential Rooftop Solar Systems Recommendation A. Find that the adoption of an ordinance related to an expedited permitting procedure for small residential rooftop solar systems is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt an Ordinance establishing an expedited permitting procedure for small residential rooftop solar systems. Background Section 65850.5(a) of the California Government Code provides that it is the policy of the State of California to promote and encourage the installation and use of solar energy systems by limiting obstacles to their use and by minimizing the permitting costs of such systems. In furtherance of that objective, Section 65850.5(g)(1) of the California Government Code requires that, on or before September 30, 2015, every city and county must adopt an ordinance that creates an expedited, streamlined permitting process for small residential rooftop solar energy systems. Given the limited stock of housing the City has yet to process an application for a residential rooftop solar system. The City, however, needs to adopt the ordinance mandated by Section 65850.5(g)(1). The attached ordinance is intended to satisfy that requirement. The ordinance codifies the requirements of Section 65850.5(g)(1), such as accepting and approving applications electronically, directing the City's Building Official to develop a checklist of all requirements Page 1 of 2 with which small rooftop solar energy systems shall comply to be eligible for expedited review, and authorizing the Building Official to administratively approve such applications. Fiscal Impact State law currently sets a mandated fee that can be charged for solar installations. These fees have previously been incorporated into the City's fee schedule. Staff anticipates that the City will receive very few applications for rooftop solar systems. Therefore, the financial impact to the City for this expedited process is anticipated to be very nominal. Attachment 1. Draft Ordinance Page 2 of 2 ORDINANCE NO . 1229 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON ADDING ARTICLE XVI TO CHAPTER 24 OF THE VERNON MUNICIPAL CODE RELATING TO EXPEDITED PERMITTING PROCEDURES FOR SMALL RESIDENTIAL ROOFTOP SOLAR SYSTEMS WHEREAS, 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; and WHEREAS, Subsection (a) of Section 65850 . 5 of the California Government Code provides that it is the policy of the State to promote and encourage the installation and use of solar energy systems by limiting obstacles to their use and by minimizing the permitting costs of such systems; and WHEREAS, Subdivision (g) (1) of Section 65850 . 5 of the California Government Code provides that, on or before September 30, 2015, every city, county, or city and county shall adopt an ordinance, consistent with the goals and intent of subdivision (a) of Section 65850 . 5, that creates an expedited, streamlined permitting process for small residential rooftop solar energy systems; WHEREAS, the City Council of the City of Vernon desires to add Article XVI to Chapter 24 of the Vernon Municipal Code . THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that all the foregoing recitals are true and correct . SECTION 2 : Article XVI of Chapter 24 of the Vernon Municipal Code is hereby added to read as follows : Article XVI Residential Solar Energy Systems TABLE OF CONTENTS Section 24 . 110 . Definitions. Section 24 .111. Small Residential Rooftop Solar Energy System Review Process. Section 24 . 110 . Definitions For the purposes of this Article, the following definitions apply: "Electronic submittal" means the utilization of one or more of the following: 1 . Email. 2 . Internet . 3 . Facsimile . "Small residential rooftop solar energy system" means all of the following: 1 . A solar energy system that is no larger than 10 kilowatts alternating current nameplate rating or 30 kilowatts thermal . 2 . A solar energy system that conforms to all applicable state fire, structural, electrical, and other building codes as adopted or amended by the City and paragraph (iii) of subdivision (c) of Section 714 of the Civil Code, as such section or subdivision may be amended, renumbered, or redesignated from time to time . 3 . A solar energy system that is installed on a single or duplex family dwelling. 4 . A solar panel or module array that does not exceed the maximum legal building height as defined by the Code of the City of Vernon. - 2 - ii "Solar energy system" has the same meaning set forth in paragraphs (1) and (2) of subdivision (a) of Section 801 . 5 of the Civil Code, as such section or subdivision may be amended, renumbered, or redesignated from time to time. Section 24 . 111. Small Residential Rooftop Solar Energy System Review Process. (a) Section 65850 . 5 of the California Government Code provides that, on or before September 30, 2015, every city, county, or city and county shall adopt an ordinance that creates an expedited, streamlined permitting process for small residential rooftop solar energy systems . (b) Section 65850 . 5 of the California Government Code provides that in developing an expedited permitting process, the city, county, or city and county shall adopt a checklist of all requirements with which small rooftop solar energy systems shall comply to be eligible for expedited review. The Director of Public Works, Water and Development Services Department, or his/her designee, is hereby authorized and directed to develop and adopt such checklist. (c) The checklist shall be published on the City' s internet website . The applicant may submit the permit application and associated documentation to the City' s Public Works, Water and Development Services Department by personal, mail, or electronic submittal together with any required permit processing and inspection fees . In the case of an electronic submittal, the electronic signature of the applicant on all forms, applications and other documentation may be used in lieu of a wet signature. (d) Prior to submitting an application, the applicant shall : - 3 - 1 . Verify to the applicant' s reasonable satisfaction through the use of standard engineering evaluation techniques that the support structure for the small residential rooftop solar energy system is stable and adequate to transfer all wind, seismic, and dead and live loads associated with the system to the building foundation; and 2 . At the applicant' s cost, verify to the applicant' s reasonable satisfaction using standard electrical inspection techniques that the existing electrical system including existing line, load, ground and bonding wiring as well as main panel and subpanel sizes are adequately sized, based on the existing electrical system' s current use, to carry all new photovoltaic electrical loads . (e) For a small residential rooftop solar energy system eligible for expedited review, only one inspection shall be required, which shall be done in a timely manner and may include a consolidated inspection by the Director of Public Works, Water and Development Services Department, or his/her designee, and the Fire Chief, or his/her designee. If a small residential rooftop solar energy system fails inspection, a subsequent inspection is authorized; however the subsequent inspection need not conform to the requirements of this subsection. (f) An application that satisfies the information requirements in the checklist, as determined by the Director of Public Works, Water and Development Services Department, or his/her designee, shall be deemed complete. Upon receipt of an incomplete application, the Director of Public Works, Water and Development Services Department, or his/her designee, shall issue a written correction notice detailing all deficiencies in the application and any additional information required to be eligible for expedited permit issuance . - 4 - (g) Upon confirmation by the Director of Public Works, Water and Development Services Department, or his/her designee, of the application and supporting documentation being complete and meeting the requirements of the checklist, the Director of Public Works, Water and Development Services Department, or his/her designee, shall administratively approve the application and issue all required permits or authorizations . Such approval does not authorize an applicant to connect the small residential rooftop energy system to the local utility provider' s electricity grid. The applicant is responsible for obtaining such approval or permission from the Vernon Gas and Electric Department. SECTION 3 : Repeal . Any ordinance or parts of an ordinance in conflict with this Ordinance are hereby repealed. SECTION 4 : Severability. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof . The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective. SECTION 5 : Book of Ordinances . The City Clerk, or Deputy City Clerk, shall attest and certify to the adoption of this - 5 - Ordinance and shall cause this Ordinance and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk, or Deputy City Clerk, shall cause this ordinance to be published or posted as required by law. SECTION 6 : Effective Date. This Ordinance shall go into effect and be in full force and effect at 12 : 01 a.m. on the thirty- first (31st) day after its passage . APPROVED AND ADOPTED this 16th day of June, 2015 . Name: Title : Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: C -Brian W. Byun, Deputy City Attorney - 6 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1229 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, June 2, 2015, and thereafter adopted at a meeting of said City Council held on Tuesday, June 16, 2015, by the following vote : AYES : Councilmembers : NOES : Councilmembers : ABSENT: Councilmembers : And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of June, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 7 -