20190618 Regular City Council Meeting - Agenda (3) 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.cityofvemon.org.
Americans with Disabilities Act("ADA"): In compliance with the ADA, if you need special assistance to
participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at
least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that
reasonable arrangements can be made to provide accessibility to the meeting or service.
Agenda
City of Vernon
Regular City Council Meeting
OF r Tuesday, June 18, 2019, 07:30 AM' ,I OX" ***PLEASE NOTE THE EARLY START
TIME***
City Hall, Council Chamber
J 4305 Santa Fe Avenue
NRIP1 PS t ���
Vernon, California
Melissa Ybarra,Mayor
Leticia Lopez,Mayor Pro-Tem
William Davis, Council Member
Carol Menke, Council Member
Vacant, 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.
PRESENTATION
1. City Administration
Fiscal Year 2019/2020 Budget Study Sessions
1. Citywide Budget Overview Recap and City Administration Department-presented
by Carlos Fandino, City Administrator
2. City Attorney Department-presented by Hema Patel, City Attorney
3. Police Department-presented by Anthony Miranda, Chief of Police
4. Vernon Public Utilities Department-presented by Abraham Alemu,Interim General
Manager of Public Utilities
Recommendation:
No action required by City Council. This is a presentation only. Page 1 of 9
2. Human Resources
Employee Service Pin Awards for May 2019
Recommendation:
No action required by City Council. This is a presentation only.
1. Service Pin List for May 2019
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.
3. City Clerk
Minutes of the Regular City Council Meeting Held on June 4, 2019
Recommendation:
A. Receive and File
1. 2019-06-04 City Council Minutes
4. City Administration
Approval of Additional Funds for Contract IT- 0063 for Telecommunication Services
Provided by AT&T through the State of California CALNET 3 Contract
Recommendation:
A. Find the approval of the proposed actions is exempt from California Environmental
Quality Act(CEQA) review,because it is an administrative activity that will not result in
direct or indirect physical changes in the environment, and therefore does not constitute as a
"project" as defined by CEQA Guidelines Section 15378; and
B. Ratify payments of$145,009.85 made to AT&T for CALNET 3 telecommunications
services from the period of November 30, 2015 to June 30, 2018; and
C. Ratify payments of$97,443.06 made to AT&T for CALNET 3 telecommunications
services from the period of July 1, 2018 to May 30, 2019; and
D. Authorize the use of additional funds for telecommunications services from AT&T in an
amount not-to-exceed$200,000 for the remaining term of CALNET 3 for the period of June
1, 2019 to June 30, 2020.
1. CALNET 3 2018 Contract Extension Notice
2. CALNET 3 2019 Contract Extension Notice
3. CALNET 3 ATO Approved 11-17-2015
5. Finance/Treasury
Approval of Operating Account Warrant Register No. 24 Covering the Period of May
28 through June 10, 2019
Page 2 of 9
Recommendation:
A. Approve Operating Account Warrant Register No. 24 which totals $7,301,223.81 and
consists of the following:
1) Ratification of electronic payments totaling$6,856,850.65.
2) Ratification of the issuance of early checks totaling $382,740.69.
3) Authorization to issue pending checks totaling $61,632.47.
1. Operating Account Warrant Register No. 24
6. Finance/Treasury
Approval of City Payroll Warrant Register No. 756 Covering the Period of May 01
through May 31, 2019
Recommendation:
A. Approve City Payroll Warrant Register No. 756 which totals $2,842,065.88 and consists
of the following:
1) Ratification of direct deposits, checks and taxes totaling $2,229,503.28.
2) Checks and electronic fund transfers (EFT)paid through Operating bank account totaling
$612,562.60.
1. City Payroll Warrant Register No. 756
7. Finance/Treasury
Approval of Federal Funds for Street Improvements Account Warrant Register No. 28
Covering the Period of May 28 through June 10, 2019
Recommendation:
A. Approve Federal Funds for Street Improvements Account Warrant Register No. 28 which
totals $28,883.80 and consists of the following:
1) Ratification of electronic payments totaling$28,883.80.
1. Federal Funds for Street Improvements Warrant Register No. 28
8. Finance/Treasury
Ratification of Warrant Registers to Record Voided Checks
Recommendation:
A. Ratify the following warrant registers to record voided checks:
1) Operating Account Warrant Register No. 22 to record voided Check No. 602885 in the
amount of$13,500.00 issued 05/09/19 to Covarrubias, Juan.
Page 3 of 9
9. Fire Department
Fire Department Activity Report for the Period of May 16 through May 31, 2019
Recommendation:
A. Receive and file.
1. Fire Department Activity Report- 05/16/19 to 05/31/19
10. Public Utilities
Approval of a Blanket Purchase Order for Equipment Purchases for Fiscal Year 2019-
2020 with Schweitzer Engineering Laboratories,Inc. c/o Matzinger-Keegan,Inc.
Recommendation:
A. Find that approval of additional funds is exempt under the California Environmental
Quality Act ("CEQA"), because it is an administrative activity that will not result in direct or
indirect physical changes in the environment, and therefore does not constitute a"project" as
defined by CEQA Guidelines section 15378; and even if it were considered to be a"project,"
the proposed action is exempt from CEQA review, in accordance with CEQA Guidelines §
15302, because the proposed project consists of the replacement or reconstruction of existing
equipment where the new equipment will be located on the same site as the equipment
replaced and will have substantially the same purpose and capacity as the equipment
replaced; and
B. Approve the issuance of a blanket Purchase Order with Schweitzer Engineering
Laboratories, Inc. ("SEL") c/o Matzinger-Keegan, Inc. ("MKI") in an amount not-to-exceed
$20,000 for potential equipment purchases during fiscal year 2019-2020.
11. Public Utilities
Approval of a Blanket Purchase Contract for Internet Connection Equipment with
Fujitsu Network Communications for Fiscal Year 2019-2020
Recommendation:
A. Find that approval of additional funds is exempt under the California Environmental
Quality Act("CEQA"), because it is an administrative activity that will not result in direct or
indirect physical changes in the environment, and therefore does not constitute a"project" as
defined by CEQA Guidelines section 15378; and even if it were considered to be a"project,"
the proposed action is exempt from CEQA review, in accordance with CEQA Guidelines §
15302, because the proposed project consists of the replacement or reconstruction of existing
equipment where the new equipment will be located on the same site as the equipment
replaced and will have substantially the same purpose and capacity as the equipment
replaced; and
B. Approve the issuance of a blanket Purchase Contract with Fujitsu Network
Communications in an amount not-to-exceed $25,000 for potential equipment purchases
during fiscal year 2019-2020.
Page 4 of 9
12. Public Works
Contract Award for City Contract No. CS-1093: Sierra Pine Avenue Improvements
Recommendation:
A. Find that the award of the proposed Capital Improvement Project at Sierra Pine Avenue is
categorically exempt under the California Environmental Quality Act(CEQA) in accordance
with CEQA Guidelines Section 15301 (Existing Facilities),part (c) (existing highways and
streets), because the project is merely to repair existing streets and involves negligible or no
expansion of existing use; and
B. Accept the bid proposal from Hardy&Harper, Inc. as the lowest responsive and
responsible bidder for the Sierra Pine Avenue Improvements Project and reject all other bids;
and
C. Approve and authorize the City Administrator to execute Contract No. CS-1093, in
substantially the same form as submitted herewith, in an amount not to exceed$247,511 for
the Sierra Pine Avenue Improvements Project, for a period not to exceed 30 calendar days;
and
D. Authorize a contingency of$25,000 in the event an unexpected changed condition in the
project and grant authority to the City Administrator to issue a change order for an amount up
to the contingency amount, if necessary.
1. Contract Agreement No. CS-1093 for Sierra Pine Avenue Improvements
13. Public Works
Award of City Contract No. CS-1061: 53rd St., 54th St., 55th St., 57th St., & Hampton
St. Improvements
Recommendation:
A. Find that the award of the proposed Capital Improvement Project at 53rd St., 54th St.,
55th St., 57th St., and Hampton Street is categorically exempt under the California
Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301
(Existing Facilities),part (c) (existing highways and streets),because the project is merely to
repair existing streets and involves no expansion of existing use; and
B. Accept the bid proposal from Hardy&Harper Inc., a California corporation, as the lowest
responsive and responsible bidder for the 53rd St., 54th St., 55th St., 57th St., and Hampton
Street Improvements Project and reject all other bids; and
C. Approve and authorize the City Administrator to execute contract CS-1061, in
substantially the same form as submitted herewith, in an amount not to exceed$407,625 for
the 53rd St., 54th St., 55th St., 57th St., and Hampton Street Improvements Project, for a
period not to exceed 45 calendar days; and
Page 5 of 9
D. Authorize a contingency of$40,000 in the event of an unexpected changed condition in
the project and grant authority to the City Administrator to issue a change order for an amount
up to the contingency amount, if necessary.
1. Contract Agreement No. CS-1061 - 53rd St., 54th St., 55th St., 57th St., and Hampton St
NEW BUSINESS
14. City Clerk
A Resolution calling for the Special Municipal Election to be Held on October 15, 2019,
for the Election of a Certain Officer and a Resolution Requesting the Board of
Supervisors of the County of Los Angeles to Render Specified Services to the City
Relating to the Conduct of the Special Municipal Election
Recommendation:
A. Find that approval of the proposed action is exempt from California Environmental
Quality Act("CEQA") review, because it is an administrative activity that will not result in
direct or indirect physical changes in the environment, and therefore does not constitute a
"project" as defined by CEQA Guidelines section 15378; and
B. Adopt a Resolution calling for the holding of the Special Municipal Election to be held on
October 15, 2019 for the Election of a City Councilmember to fill the unexpired term of
former Councilmember Yvette Woodruff-Perez; and
C. Adopt a Resolution requesting the Board of Supervisors of the County of Los Angeles to
render specified services to the city relating to the conduct of the Special Municipal Election
to be held on October 15, 2019.
1. Calling October 15, 2019 Special Municipal Election- Resolution
2. Requesting County Services for October 15, 2019 Special Municipal Election - Resolution
15. Human Resources
A 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 attached resolution in this staff report is exempt from California
Environmental Quality Act (CEQA) review,because it is an administrative activity that will
not result in direct or indirect physical changes in the environment and therefore does not
constitute a"project" as defined by CEQA Guidelines Section 15378; and
B. Adopt the attached resolution amending and restating the Citywide Fringe Benefits and
Salary Resolution, to reflect the following provisions:
1)Amend Exhibit A, Classification and Compensation Plan adopting the following revised
job descriptions effective June 18, 2019:
-Utilities Operations Manager
Page 6 of 9
2) Amend Exhibit A, Classification and Compensation Plan adopting the correction of
employee group designation for the following classification effective June 18, 2019:
-Assistant Fire Marshal FM Grade 29 to Assistant Fire Marshal M Grade 29
3) Approve the recommended reclassification of incumbents in certain classifications
effective July 21, 2019, as follows:
-Current Classification and Salary Grade & Reclassification Recommendation and Salary
Grade
Administrative Assistant Confidential (Grade 13)to Administrative Secretary(Grade 20)
Two (2)Associate Engineers (Grade 29) to Project Engineers (Grade 31)
Information Technology Technician(Grade 22) to Information Technology Analyst
(Grade 26)
4) Amend Section 11: Automobile Allowance and Reimbursement for Expenses of the Fringe
Benefits and Salary Resolution effective June 18, 2019, as follows:
-Add the classification title of Environmental Health Program Administrator, to be eligible
for a $400/month automobile allowance;
-Correct the classification title of Finance Director to Director of Finance/City Treasurer;
-Correct the classification title of Health Director to Director of Health and Environmental
Control
1. Resolution-Amended and Restated Citywide Fringe Benefits and Salary Resolution
2. Job Description-Utilities Operations Manager
16. Public Utilities
A Resolution Declaring the City's Official Intent To Reimburse Expenditures from the
Proceeds of Obligations to be Issued by the City of Vernon, a Related Party or Other
Affiliate, and Approving Certain Related Actions
Recommendation:
A. Find that adoption of the proposed Resolution does not constitute a"project"pursuant to
section 15378(b)(2) of the Guidelines to the California Environmental Quality Act
("CEQA"), because the intent to reimburse expenditures from the proceeds of obligations
merely establishes a government funding mechanism that does not identify individual specific
projects to be constructed with the funds; and
B. Adopt a Resolution declaring the City's official intent to reimburse expenditures from the
proceeds of obligations to be issued by the City of Vernon, a related party or other affiliate,
and approving certain related actions.
1. Resolution declaring the Citys Official Intent to Reimburse Expenditures from the
Proceeds of Obligations to be issued by Vernon
2. Water Division Projected 3-year Capital Improvements
Page 7 of 9
ORAL REPORTS
City Administrator Reports—brief reports on activities and other brief announcements by the City
Administrator and Department Heads.
City Council Reports—brief AB 1234 reports, or report on: activities, announcements, or directives to staff.
CLOSED SESSION
17. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Government Code Section 54956.9(d)(2) and (4)
Number of potential cases: 2
(1) The City is currently in a dispute with Bicent (California) Malburg, LLC (`Bicent"),
the owner and operator of the Malburg Generating Station ("MGS"), which has
resulted in Bicent initiating suit against the City (see "Existing Litigation" closed session
item). Prior to the initiation of the suit, the City issued multiple Notices of Default
under that certain Power Purchase Tolling Agreement, dated as of April 10, 2008 (as
amended, the "PPTA"). The City's claims relate to, among other things, Bicent's failure
to timely repair equipment, failure to timely produce documents requested under the
PPTA, misrepresentation of available capacity, and improper overbilling (by over $ 6
million). The City's claims also include various statutory claims arising out of the
improper billing by Bicent of Vernon.
Based on these claims, the City provided notice to Bicent that it disputed certain
invoices and would exercise its payment withholding rights under certain dispute
resolution provisions in the PPTA. Subsequently, on April 22, 2019, Bicent issued a
Notice of Event of Default for failure to pay.
(2) The City was for several months in a dispute with the Central Basin Municipal
Water District ("CBMWD") with regard to certain provisions of a long-term agreement
between the City and CBMWD. Under that agreement, the City paid approximately
$2.5 million to build certain water-related infrastructure in the City to take recycled
water from CBMWD. For its part, CBMWD, under the agreement, is obligated to
reimburse the City for that capital outlay in the form of a credit on its monthly water
bill. The agreement also restricted CBMWD's ability to increase the City's recycled
water rate. CBMWD challenged these provisions by unilaterally increasing the City's
recycled water rate beyond the rate increase cap imposed by the agreement and ceased
applying the monthly credit even though the City's capital expense was not fully
reimbursed with interest. Rather than engage in uncertain and potentially expensive
litigation to determine the parties' respective rights and obligations under the
agreement, the parties negotiated a settlement in the form of an amendment to the
agreement.
Page 8 of 9
18. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))
Bicent(California) Malburg LLC et al.vs. City of Vernon et al.,
Cal. Sup. Ct., Case No. 19STCV08859
19. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2)
Number of potential cases: 1
20. CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Agency Designated Representative: Carlos Fandino, City Administrator
Employee Organizations:
Teamsters Local 911,
IBEW Local 47,
Vernon Professional Firefighters Association,
Vernon Fire Management Association,
Vernon Police Management Association, and
Vernon Police Officers' Benefit Association
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 date set forth on this agenda.
Dated this 13th day of June, 2019.
By:
Maria E. Ayala
City Clerk
Page 9 of 9