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19841126 Regular City Council Meeting - Minutes " MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL, HELD NOVEMBER 26, 1984, AT 4: 45 P. H., IN THE COUNCIL CHAMBER OF THE CITY HALL, LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA I MEMBERS PRESENT: MEMBERS ABSENT: Malburg, Ybarra, Gonzales, Davis McCormick The meeting was called to order by Mayor Malbrug. The City Administrator submitted the Transmission Agree- ment prepared by the City's staff between the City of Vernon and Container Corporation of America ("CCA") to the Council for their consideration and recommended that the Agreement be approved. , The City Attorney briefly described the Agreement for tne Council and the audience indicating that it was consistent with the Council's previous policy instructions and recommend- ed that it be approved. The Mayor asked if there were any questions. Mr. Del Brooks of CCA indicated that he did not receive a copy of the City's agreement until 5:11 p.m. The City Administrator stated that Mr. Dunsmore and Mr. Bartley were advised by him that the staff's recommendations and agreement would. be presented to the Council for approval. He further indicated that CCA could submit a proposed agreement to the City Clerk's office by Thursday, and it would be placed on the agenda for the next City Council meeting to be held next Tuesday, December 4, 1984. Mr. Brooks indicated that there are material differences between the City's agreement and CCA's agreement. He further indicated that if CCA does not have an executed agreement to- night, it will be force to cancel its contract with Parsons. I The City Attorney indicated that at the last City Council meeting, the Conditional Use Permit was approved based on a transmission agreement being approved and sign prior to its issuance. He further indicated that he strongly recommends that the City's Agreement be approved today in order to go forward with the Conditional Use Permit. Mr. Brooks indicated that the issuance of the Conditional Use Permit and the executed Wheeling Agreement needed to be taken with him when he met with Parsons tomorrow. Mr. Dunsmore indicated that Article l4A which prov~ded for a fee of $300,000 per year for a l2-month period of nonuse, and a fee of $25,000 per month or $75,000 per three-month period was definitely a material difference from the agreement which CCA had prepared. The City Attorney indicated that the fee was payment to keep available the capacity for the facility even if CCA does not use it. That is, the $300,000 fee for a l2-month period is for a transmission capacity reservation and that it would be on a yearly basis. He further indicated that this matter was discussed yester- day, and it was Mr. Brodie who described the proposal and had indi- cated that CCA would be permitted on (1) twelve (12) month holiday 1088 =2= 11/26/84 before having to pay for unused capacity at a fee of $300,000 per year. I The City Administrator indicated that the City's negotiat- ing team did not agree to what Mr. Dunsmore is proposing in his contract that CCA only pay $25,000 per month and indicated that it was never only $25, 000 per month. Mr. Dunsmore indicated that he needed to review this Agree- ment and requested time to review it tonight. The City Attorney recommended that the City Council approve this Agreement at this time and indicated that he could see no point in renegotiating at this time as the Agreement is consist- ent with the Council's instructions not to subsidize CCA at the expense of other Vernon customers. Councilman Gonzales, indicated that he was not willing to approve an agreement where other customers are forced to sub- sidize a private company which is what we went through with Bethlehem Steel and he was not willing to agree to do it as it wasn't fair to other companies within the City. Councilman Davis stated that it is apparent that we have done all that can be done and that if CCA was given another 45 minutes or so to review the Agreement, they would come back and possibly ask for more changes and it would just continue as be- fore. He indicated that this Agreement should be the final docu- men t . Mr. Dunsmore indicated that he is still asking for some time to at least review it thoroughly as it was unfair to have only 20 minutes to look over a document and then be asked to agree to it. The City Attorney recommended that it be approved, but that the Mayor be authorized to initial changes which are in substant- ial agreement with the form presented here tonight. The City Administrator stated that this is the only way we could go, that this has been carried on long enough, and that it was a fair agreement. He further indicated that Mr. Brearley, Mr. Brodie and himself could stay for awhile and if CCA wished to look at the agreement and come back to discuss a few things, that they would be available for these discussions. He further indi- cated that one of the contingencies of the Conditional Use Permit being approve was that a Transmission Agreement also be approved by the Council. I It was moved by Davis, seconded by Ybarra, to approve the City of Vernon's Transmission Agreement by and between the City of Vernon and CCA recommended by the City's staff. Motion carried. AYES: NOES: ABSENT: Davis, Ybarra, Malburg, Gonzales None McCormick RESOLUTION NO. 5155 - A Resolution of the City Council of the City of Vernon Approving And Authorizing The Execution Of A Trans- mission Service Agreement By And Between Container Corporation Of America And The City Of Vernon For Cogeneration Facility AT 2001 E. 57th Street~ was presented. It was moved by Gonzales, seconded by Davis, that Resolution No. 5155 be approved and adopted. Motion carried. AYES: NOES: ABSENT: Gonzales, Ybarra, Davis, Malburg None McCormick 1089 =3= 11/26/84 It was moved by Davis, seconded by Gonzales, to approve the issuance of a Conditional Use Permit to be signed by the Mayor based on the execution of the Transmission Agreement by and between the City of Vernon and Container Corporation of America. Motion carried. There being no further business to come before the City Council, it was moved by Ybarra, seconded by Davis, that the meeting be adjourned. Motion carried. I ~~~- c,. (~EONIS C. MALBU G, Mayor ATTEST: ~/J~ ~ r BRUCE V.MALKENHORST, City Administratorl City Clerk I 1090