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20000215 Regular City Council Meeting - MinutesMINUTES OF THE CITY COUNCIL MEETING OF THE CITY OF VERNON HELD FEBRUARY 15, 2000 AT 5:00 P.M. IN THE COUNCIL CHAMBERS OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE VERNON, CALIFORNIA MEMBERS PRESENT: Malburg, Ybarra, Gonzales, Davis, McCormick MEMBERS ABSENT: None The meeting was called to order by Mayor Malburg. It was moved by Ybarra, seconded by Gonzales, that the Minutes of the City Council Meeting held January 25, 2000, be approved as submitted and adopted (deferred from City Council Meeting held February 1, 2000). Motion carried. It was moved by McCormick, seconded by Davis, that the Minutes of the City Council Meeting held February 1, 2000, be approved as submitted and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 8, 2000, was presented, advising that the SPIRITS awards committee, composed of Department Heads and the City Administrator's designee, has selected C. Brian Montoya, Meter Reader, in the Utilities Department, as the winner of the "1999 City Annual SPIRITS Award" in recognition of his excellent and superior performance. It was moved by Ybarra, seconded by Gonzales, that the communication from the City Clerk dated, February 8, 2000, be received and filed. Motion carried. RESOLUTION NO. 7483 - A Resolution of the City Council of the City Of Vernon Commending C. Brian Montoya, A Meter Reader in the Utilities Department, for his Exemplary Services to the City Of Vernon during 1999, was presented. It was moved by McCormick, seconded by Davis, that Resolution No. 7483 be approved and adopted. Motion carried. The Mayor and City Clerk executed the Resolution and the Mayor presented it to Brian Montoya and extended congratulations on behalf of the entire City Council. RESOLUTION NO. 7484 - A Resolution of the City Council of the City Of Vernon Commending Gary Dressen for his Many Years of Service to the City Of Vernon, was presented. It was moved by Ybarra, seconded by Davis, that Resolution No. 7484 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 8, 2000, was presented, advising that the below listed employees have qualified in the month of January for a Perfect Attendance Award. This is awarded to employees on the basis of a minimum of two (2) years of perfect attendance: Date of Hire Employee Award 01-12-98 Anthony Arnone Firefighter 2 01-12-98 Greg Galvan Firefighter 2 01-12-98 Alec Miller Firefighter 2 01-12-98 Lorenzo Gaytan Police Officer 2 09-18-89 William Foltz Fire Engineer 3 City Council Minutes February 15, 2000 08-17-87 Bradley Miller Fire Engineer 4 01-03-95 Shirley Salas Account Clerk 5 10-24-88 Andrew Guth Fire Captain 6 03-25-91 Jim Wilcox Sr. Environmental 6 Specialist 08-28-88 Mauro Trujillo Utilityman III 8 01-21-91 Anthony Serrano Customer Service 9 Representative 01-02-90 Joan Francone Risk Manager/ 10 Personnel Asst. 01-02-90 Silas Williams Utilityman III 10 04-12-66 Edward Saenz Utilityman I 12 09-28-86 Felix Saldana Utilityman II 12 The Mayor presented awards to the aforementioned employees and extended congratulations on behalf of the entire City Council. The following employees were unable to attend the meeting and their awards were accepted by their respective department head. 05-30-82 Karon Berry Utility Clerk 2 01-12-98 Bryan Dome Firefighter 2 01-12-98 Ryan Fogg Firefighter 2 01-12-98 Jason Hurd Firefighter 2 01-12-98 Kevin Millikan Firefighter 2 01-06-87 George Salazar Police Officer 3 01-05-87 David Kimes Fire Captain 4 06-30-81 Stella Pasillas Utility Clerk 4 01-10-94 Jerry R. Chavez Police Officer 6 01-05-87 Jed Hulsey Fire Captain 7 09-22-87 Christian Moscoso Police Officer 7 04-04-88 Daniel Calleros Police Sergeant 8 08-17-87 Anthony Zack Police Sergeant 8 09-18-89 Francisco Tostado Fire Engineer 9 08-09-82 Bruce Olson Chief of Police 11 10-24-88 Craig Peltier Firefighter 11 The Mayor called a short recess, the time being 5:12 p.m. Council reconvened at 5:15 p.m., all members present before the recess again being present. Police Department Activity Log for the period February 1st thru 14th, 2000, was presented. It was moved by McCormick, seconded by Gonzales, that the Police Department Activity Log for the period February 1st thru 14th, 2000, be received and filed. Motion carried. Fire Department Activity Report for the period February 1st thru 14th, 2000, was presented. It was moved by Ybarra, seconded by Davis, that the Fire Department Activity Report for the period February 1st thru 14th, 2000, be received and filed. Motion carried. Health Department Report for the month of January, 2000, was presented. Page 2 of 18 City Council Minutes February 15, 2000 It was moved by Davis, seconded by McCormick, that the Health Department Report for the month of January, 2000, be received and filed. Motion carried. The City Clerk announced that now was the time for anyone in the audience to address the City Council on any item on the Agenda other than with regard to any Public Hearings that may be listed. The Mayor asked if anyone in the audience wished to address the Council at this time. There was no one in the audience who wished to address the City Council at this time. The City Clerk announced that now was the time to open the PUBLIC DARING to consider a request from Sandberg Furniture Mfg. Co., for a Conditional Use Permit to operate an accessory warehouse in excess of 50,000 square feet at 5685 Alcoa Avenue in the City of Vernon. It was moved by Ybarra, seconded by Davis, to open the Public Hearing to consider a request from Sandberg Furniture Mfg. Co., for a Conditional Use Permit, the time being 5:16 p.m. Motion carried. Mr. Kevin Wilson, Director of Community Services and Water addressed the City Council and briefly summarized the staff report. Communication from S. Kevin Wilson, Director of Community Services and Water dated, February 9, 2000, was presented, advising that Sandberg Furniture Mfg. Co., Inc. has submitted an application for a conditional use permit. They are proposing to operate more than 50,000 square feet of a new tilt up industrial building as an accessory warehouse at 5685 Alcoa Avenue in the City of Vernon. Submitted herewith are the following documents: 1) Staff Report. 2) Conditional use permit application and information supporting the application. 3) Notice of Public Hearing, notice of intent, copies of notification letters to owners and tenants in the area and affidavits of posting and mailing. 4) Environmental Checklist Form and Initial Study. 5) Proposed Negative Declaration. An initial study has been conducted for the project in compliance with the California Environmental Quality Act (CEQA) which identifies potentially significant impacts on the environment from the project. The study failed to identify any adverse affects due to the construction and operation of the project. A notice of determination will be filed with the County Clerk. The project is consistent with the General Plan as adopted by the City of Vernon. Therefore, it is recommended that the City Council determine: Page 3 of 18 City Council Minutes February 15, 2000 1. That the project is consistent with the General Plan as adopted by the City of Vernon. 2. That the project will not have a significant effect on the environment. 3. That the project will not individually or cumulatively have an adverse effect on wildlife resources. 4. That the Negative Declaration be approved and adopted. It is further recommended that the conditional use permit be granted subject to the following conditions: a) The facility shall be operated in accordance with, and made to conform with, all current codes, rules, regulations, and be subject to permit fees as adopted by the City of Vernon. All trucking operations, including truck and trailer parking, shall be limited to the lot located at or tied to 5685 Alcoa Avenue in the City of Vernon. b) All required federal, state, local, and regulatory agency permits shall be obtained prior to operation. Prior to occupancy a business license and occupancy permit shall be obtained. c) All parking and loading facilities shall be paved with a hard durable surface material and shall be adequately drained, and kept free of dust, mud, trash, and weeds. Where parking or maneuvering areas adjoin the public street a barrier wall or landscaping shall be installed and maintained to meet City standards. Adequate on -site parking shall be maintained so that no on -street parking will occur. d) The facility shall be operated in a manner that will prevent unsanitary conditions, odors and other nuisances. The property shall be provided with adequate refuse containers and refuse disposal services. e) The facility's buildings shall be structurally maintained to exclude rodents and the property shall be maintained rodent free. f) Servicing of vehicles including washing, steam cleaning, and repairing shall be performed in facilities in compliance with appropriate codes. g) No equipment or freight shall be stored on the site other than in buildings, trailers or on the docks. h) A National Pollutant Discharge Elimination System Permit shall be obtained from the California State Board of Water Resources, if required. i) Adequate plans and materials must be available for handling leaks or spills from vehicles during storage or transportation. j) If required a hazardous materials permit shall be obtained from the City of Vernon Environmental Health Department if hazardous materials/waste are used, handled or stored. Hazardous materials/waste shall be handled and managed in compliance with all appropriate federal, state, and local laws. Page 4 of 18 City Council Minutes February 15, 2000 k) The facility shall be operated in a manner that will not impede traffic on Alcoa Avenue and Slauson Avenue. 1) All required frontage improvements shall be constructed and all existing cracked sidewalk, curb, and gutter adjacent to the site on Alcoa Avenue shall be repaired and maintained to meet City Standards. m) The owner of the property shall provide to the City of Vernon a utility easement for the underground electric lines and padmounted transformer located on the owners property in a form and manner subject to approval of the Director of Community Services and Water. n) No more than 10% of the entire Sandberg Furniture facility shall be converted from manufacturing, milling, and/or packaging space to warehousing space. The Mayor asked if the City Council or anyone from the audience had any questions or comments. There were no questions or comments from the City Council or anyone from the audience. It was moved by McCormick, seconded by Gonzales, to close the Public Hearing pertaining to the request from Sandberg Furniture Mfg. Co., for a Conditional Use Permit to operate an accessory warehouse in excess of 50,000 square feet at 5685 Alcoa Avenue, Vernon, the time being 5:24 p.m. Motion carried. It was moved by McCormick, seconded by Ybarra, that the communication from the Director of Community Services and Water dated February 9, 2000 and all supporting documents submitted as evidence during the Public Hearing, be received and filed. Motion carried. It was moved by Ybarra, seconded by Gonzales, that the City Council hereby determines that the project is consistent with the General Plan as adopted by the City of Vernon. Motion carried. It was moved by McCormick, seconded by Davis, that the City Council hereby determines that the project will not have a significant effect on the environment. Motion carried. It was moved by Gonzales, seconded by Ybarra, that the City Council hereby determines that the project will not individually or cumulatively have an adverse effect on wildlife resources. Motion carried. It was moved by Gonzales, seconded by Davis, that the Negative Declaration be approved and adopted, and that the Conditional Use Permit be granted contingent upon conditions "a- n". Motion carried. RESOLUTION NO. 7485 - A Resolution of the City Council of the City of Vernon Granting a Conditional Use Permit to Sandberg Furniture Mfg. Co., Inc. for the Operation of an Accessory Warehouse at 5685 Alcoa Avenue, was presented. It was moved by Ybarra, seconded by McCormick, that Resolution No. 7485 be approved and adopted. Motion carried. Page 5 of 18 City Council Minutes February 15, 2000 Communication from S. Kevin Wilson, Director of Community Services and Water dated, February 8, 2000, was presented, transmitting for consideration two (2) fully executed Grant Deeds and a Grant of Easement from Raymond Isaac. 1) Grant Deed - For a portion of property located on the southeast corner of 37th and Alameda Streets at 3710 S. Alameda Street, and consisting of approximately 3.66 square feet. The property will be used for street purposes. 2) Grant Deed - For a portion of property located on the northeast corner of 38th and Alameda Streets at 3716 S. Alameda Street, and consisting of approximately 171.57 square feet. The property will be used for street purposes. 3) Grant of Easement - For portions of property located at both the southeast corner of 37th and Alameda Streets at 3710 S. Alameda Street and the northeast corner of 38th and Alameda Streets at 3716 S. Alameda Street, and consisting of approximately 680.33 square feet combined. The property will be used for utility purposes. It is hereby recommended that the two (2) Grant Deeds and the Grant of Easement be accepted, the Certificate of Acceptance be approved, and the Mayor and City Clerk be authorized to sign. It was moved by Gonzales, seconded by Davis, that the communication from the Director of Community Services and Water dated, February 8, 2000, be received and filed and the recommendation approved. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated January 11, 2000, was presented, advising that this legislative body previously approved entering into negotiations with Quindar Products LTD., for the purchase, delivery, engineering, installation, commissioning, and testing of five (5) replacement Remote Terminal Units for the Control Center and Electric Substations to complete the upgrade of the SCADA System for the Utilities Department. After further negotiations, the original not to exceed price of $92,000.00 remains unchanged. Corresponding with the completion of certain performances during the project, payments will be disbursed in five payments by the following percentages of the total cost: e 15% - $13,800.00 e 10% - $ 9,200.00 e 25% - $23,000.00 e 25% - $23,000.00 e 25% - $23,000.00 This has been reviewed by the Purchasing Agent and the City Attorney, and it is hereby recommended to authorize the purchase of five (5) replacement Remote Terminal Units, at a cost not to exceed $92,000.00, and approve a Purchase Contract with Quindar Products LTD. It was moved by McCormick, seconded by Gonzales, that the communication from the City Clerk dated, January 11, 2000, be received and filed and the recommendation approved. Motion carried. Page 6 of 18 City Council Minutes February 15, 2000 RESOLUTION NO. 7486 - A Resolution of the City Council of the City Of Vernon Approving and Authorizing the Execution of an Equipment Purchase Contract By and Between the City of Vernon and Quindar Products Ltd. for the Purchase and Installation of Remote Terminal Units to Complete the Upgrade of the SCADA System for the Utilities Department, was presented. It was moved by Ybarra, seconded by Davis, that Resolution No. 7486 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 3, 2000, was presented, advising that on December 16, 1997, this Council approved Resolution No. 7062 which modified the existing electrical rates that, in part, provided for an overall reduction in rates plus a credit that would offset state imposed charges established by AB1890. Due to recent increases in power costs and the projected future cost of power, it is recommended that reserves no longer be used to offset the state -imposed AB1890 charges which entails eliminating the above - mentioned credit. This proposed change will allow Vernon to better position itself as Edison and other utilities pay off their stranded investment. Vernon will continue to provide substantial savings in electrical rates compared to neighboring utilities. This has been reviewed by the Director of Utilities, and it is hereby recommended that the AB1890 Credit currently being applied to all the electric bills be removed effective April 1, 2000. The Mayor asked if this meant that we still maintain the lowest rates. The Director of Utilities advised, "Yes, the City of Vernon still maintains the lowest electrical rates in the state. It was moved by Gonzales, seconded by Ybarra, that the communication from the City Clerk dated, February 3, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7497 - A Resolution of the City Council of the City Of Vernon Amending Section 3 of Resolution No. 7062 to Remove the AB1890 Credit for all Electric Customers, was presented. It was moved by McCormick, seconded by Davis, that Resolution No. 7497 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 9, 2000, was presented, advising that last year the City received a Grant in the amount of $8,411.00 from the Office of Criminal Justice through the Juvenile Accountability Incentive Block Grant (JAIBG) Program. The grant was to be used for matters relating to the suppression of juvenile delinquency, which included funding a contract with the Los Angeles District Attorney's (LADA) Office or the probation office relating to juvenile prosecution. This Council approved reallocating those funds to the LADA's Office. The City's Grant allocation this year is $8,433.00, and it is hereby recommended that the City, again, reallocate the funds to the LADA's Office. Page 7 of 18 City Council Minutes February 15, 2000 It was moved by Davis, seconded by Ybarra, that the communication from the City Clerk dated, February 9, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7488 - A Resolution of the City Council of the City of Vernon Authorizing the Reallocation of Funds Made Available Through the Juvenile Accountability Incentive Block Grant Program for Year Two to the Los Angeles County District Attorney's Office, Los Padrinos Court, was presented. It was moved by Gonzales, seconded by McCormick, that Resolution No. 7488 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk dated, February 7, 2000, was presented, advising that Resolution No. 7460 authorized the Purchasing section to seek formal bids for Bid No. 1389 for one (1) mid -size passenger van for the Police Department. The bids were opened on January 24, 2000 with the following results: 1) Sopp Chevrolet $22,299.50 2) Downtown L.A. Motors $23,354.94 3) Greenwood Auto Center $23,421.41 4) South Bay Ford No Bid 5) Cal Worthington Ford No Bid 6) Golden State Truck Center No Bid The bids have been reviewed and approved by the Purchasing Section, and it is hereby recommended that Bid No. 1389 be accepted and authority be granted to issue a purchase order to Sopp Chevrolet on the basis of their bid of $22,299.50 (including tax), and approve execution of a Purchase Contract. It was moved by Ybarra, seconded by Gonzales, that the communication from the City Clerk dated, February 7, 2000, be received and filed, and the recommendation approved. Motion carried. RESOLUTION NO. 7487 - A Resolution of the City Council of the City of Vernon Accepting the Bid of Maurice J. Sopp & Son Chevrolet on Bid No. 1389 for the Purchase of a Mid -Size Passenger Van for the Police Department and Approving and Authorizing the Execution of a Vehicle Purchase Contract and the Issuance of a Purchase Order Respecting Said Bid, was presented. It was moved by McCormick, seconded by Davis, that Resolution No. 7487 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 8, 2000, was presented, advising that Resolution No. 7462 authorized the Purchasing section to seek formal bids for Bid No. 1392 for one (1) Sports Utility vehicle for the Police Department. The bids were opened on January 24, 2000 with the following results: 1) Sopp Chevrolet $23,923.25 2) Felix Chevrolet $25,202.77 3) Greenwood Auto Center $27,107.48 4) South Bay Ford No Bid 5) Golden State Ford Truck No Bid 6) Cal Worthington Ford No Bid Page 8 of 18 City Council Minutes February 15, 2000 The bids have been reviewed and approved by the Purchasing Section, and it is hereby recommended that Bid No. 1392 be accepted and authority be granted to issue a purchase order to Sopp Chevrolet on the basis of their bid of $23,923.25 (including tax), and approve execution of a Purchase Contract. It was moved by Ybarra, seconded by Gonzales, that the communication from the City Clerk dated, February 8, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7496 - A Resolution of the City Council of the City of Vernon Accepting the Bid of Maurice J. Sopp & Son Chevrolet on Bid No. 1392 for the Purchase of One Sports Utility Vehicle for the Police Department and Approving and Authorizing the Execution of a Vehicle Purchase Contract and the Issuance of a Purchase Order Respecting Said Bid, was presented. It was moved by Davis, seconded by McCormick, that Resolution No. 7496 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 8, 2000, was presented, advising that Resolution No. 7462 authorized the Purchasing section to seek formal bids for Bid No. 1391 for two (2) Passenger Sedan vehicles for the Police Department. The bids were opened on January 24, 2000 with the following results: 1) Sopp Chevrolet $41,784.50 2) Greenwood Auto Center $45,723.46 3) Felix Chevrolet $46,077.70 4) South Bay Ford No Bid 5) Cal Worthington Ford No Bid The bids have been reviewed and approved by the Purchasing Section, and it is hereby recommended that Bid No. 1391 be accepted and authority be granted to issue a purchase order to Sopp Chevrolet on the basis of their bid of $41,784.50 (including tax), and approve execution of a Purchase Contract. It was moved by McCormick, seconded by Gonzales, that the communication from the City Clerk dated, February 8, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7495 - A Resolution of the City Council of the City of Vernon Accepting the Bid of Maurice J. Sopp & Son Chevrolet on Bid No. 1391 for the Purchase of Two Passenger Sedan Vehicles for the Police Department and Approving and Authorizing the Execution of a Vehicle Purchase Contract and the Issuance of a Purchase Order Respecting Said Bid, was presented. It was moved by Davis, seconded by Ybarra, that Resolution No. 7495 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk dated, February 8, 2000, was presented, advising that Resolution No. 7459 authorized the Purchasing section to seek formal bids for Bid No. 1390 for one (1) one and a half -ton flatbed truck for the Utilities Department. The bids were opened on January 24, 2000 with the following results: Page 9 of 18 City Council Minutes 1) Llovio Ford 2) Golden State Truck 3) Cal Worthington Ford 4) South Bay Ford 5) Downey Ford 6) Wondries Ford February 15, 2000 $36,372.00 No Bid No Bid No Bid No Bid No Bid The results of the bid were found insufficient, and it is hereby recommended that Bid No. 1390 be rejected and that the Purchasing Section be authorized to go out to bid again for a one and a half -ton flatbed truck. Communication from Bruce V. Malkenhorst, City Clerk dated, February 10, 2000, was presented, advising that in December, 1998, this Council adopted Ordinance No. 1067, which requires solid waste collection companies doing business in Vernon to apply for a non-exclusive franchise agreement with the City. The franchise agreement requires the submission of waste generation and recycling reports and a franchise fee on gross receipts. Currently, there are over thirty (30) solid waste collection companies with active franchise agreements. In addition, Ordinance No. 1067 allows for new solid waste companies to enter into a non-exclusive franchise agreement with the City. Both Alta Rubbish Hauling Service and Southern California Environmental, Inc., have each submitted a franchise agreement package to include: two original agreements, insurance documentation, and a performance bond instrument. This has been reviewed by the Director of Environmental Health and City Attorney, and it is hereby recommended that the franchise agreements for both, Alta Rubbish Hauling Service and Southern California Environmental, Inc. be approved and executed. It was moved by Davis, seconded by Ybarra, that the communication from the City Clerk dated, February 10, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7494 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of Two Additional Non -Exclusive Solid Waste Franchise Agreements Pursuant to Article VI of Chapter 12 of the Vernon City Code By And Between the City of Vernon and Alta Rubbish Hauling Service and Southern California Environmental, Inc, was presented. It was moved by McCormick, seconded by Gonzales, that Resolution No. 7494 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 3, 2000, was presented, advising that this Council previously approved Resolution No. 5925 on May 21, 1991, approving the adoption of the City of Vernon Safety Program and which was amended in December 1995 to include additional sections more administrative in content. The Risk Manager advises that, pursuant to CAL -OSHA guidelines for Work Place Security, the addition of a Violence Free Workplace Policy (VFWP) is necessary. Transmitted herewith is a proposed VFWP, which has been reviewed by the Risk Manager/Personnel Assistant. It is hereby recommended that the proposed VFWP be approved, and that the Safety Program be amended to include same. Page 10 of 18 City Council Minutes February 15, 2000 It was moved by Ybarra, seconded by Gonzales, that the communication from the City Clerk dated, February 3, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7491 - A Resolution of the City Council of the City of Vernon Approving Revision No. 2 to City of Vernon Safety Program, April 1991, was presented. It was moved by Gonzales, seconded by Ybarra, that Resolution No. 7491 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 10, 2000, was presented, advising that the Finance Committee at their meeting held October 12, 1999 approved and recommended to City Council to retain the firm of Cotton/Beland & Associates for the purpose of their preparing an impact study associated with the parking and loading regulations of the City. This was subsequently approved by City Council on October 19, 1999, and it is hereby recommended that the Agreement be executed, and the following resolution be approved. It was moved by Ybarra, seconded by Gonzales, that the communication from the City Clerk dated, February 10, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7493 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of an Agreement for Professional Consulting Services By and Between the City of Vernon and Cotton/Beland/Associates, Inc. for the Preparation of an Impact Study Concerning Parking and Loading Regulations, was presented. It was moved by McCormick, seconded by Davis, that Resolution No. 7493 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 3, 2000, was presented, advising that on February 16, 1999 this Council approved the Resource Procurement Plan & Credit Risk Management Policy (Plan & Policy) which established guidelines for the Utilities Department to plan, execute, and control the management of a variety of risks inherent in power resource procurement. Section 3.4 of the Plan & Policy requires the establishment of a multi -year strategic direction for resource procurement and the net position risk tolerance for the Utilities Department. Submitted herewith, is a Strategic Direction and Risk Tolerance for Resource Procurement (Strategic Direction) document which satisfies those requirements, and establishes and communicates a plan that will better enable the Utilities Department to provide low cost power and optimize its portfolio while managing and mitigating risk. This has been reviewed by the Director of Utilities and our Financial Legal Consultant, Eric T. Fresch, and it is hereby recommended that the attached Strategic Direction document be approved. It was moved by Gonzales, seconded by Davis, that the communication from the City Clerk dated, February 3, 2000, be received and filed and the recommendation approved. Motion carried. Page 11 of 18 City Council Minutes February 15, 2000 RESOLUTION NO. 7489 - A Resolution of the City Council of the City of Vernon Adopting a Strategic Direction and Risk Tolerance for Resource Procurement for the Utilities Department, was presented. It was moved by McCormick, seconded by Ybarra, that Resolution No. 7489 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 3, 2000, was presented, advising that on February 16, 1999 this Council approved the Resource Procurement Plan & Credit Risk Management Policy (Plan & Policy) which established guidelines for the Utilities Department to plan, execute, and control the management of a variety of risks inherent in power resource procurement. Section 1.6 of the Plan & Policy authorizes the transacting of business in electricity futures, and various other markets and Resolution No. 7296 approved and authorized the establishment of brokerage accounts to enable the Utilities Department to engage in financial electricity commodities futures. Section 6.1 of the Plan & Policy provides for the introduction of new products such as natural gas futures. Since, the price of natural gas has a definite correlation with the price of electrical energy, the use of natural gas futures may be used to help provide low cost power and optimize its portfolio while managing and mitigating risk. This has been reviewed by the Director of Utilities and our Financial Legal Consultant, Eric T. Fresch. It is hereby recommended that the City approve the use of natural gas futures for the purpose of power resource procurement, and that Resolution No. 7296 be amended. It was moved by Gonzales, seconded by Ybarra, that the communication from the City Clerk dated, February 3, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7490 - A Resolution of the City Council of the City of Vernon Amending Resolution No. 7296 Which Approved and Authorized Agreements for the Purchase and Sale of Electric Power, Transmission and Capacity in New Markets, was presented. It was moved by McCormick, seconded by Davis, that Resolution No. 7490 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated February 10, 2000, was presented, advising that on January 17, 2000 the Finance Committee approved Bid No. 1387 for the purchase of ninety-five (95) Overhead Distribution Transformers for the Utilities Department. Staff from the Utilities Department have completed their evaluation of the bids based on total ownership cost, and have recommended the following vendors: Vendor Qty. Price (Not Including Tax) Wesco Distribution, Inc. 13 $ 49,531.00 Cummins Utility Supply 8 $ 4,964.00 Southwest Power, Inc. 12 $ 5,844.00 Central Moloney, Inc., 55 $ 93,455.00 c/o Southcoast Utility Sales Total Cost $153,794.00 Page 12 of 18 City Council Minutes February 15, 2000 The bids have been reviewed and approved by the Purchasing Section, and it is hereby recommended that Bid No. 1387 be accepted, authority be granted to issue Purchase Orders at the stated amounts, and Purchase Contracts be executed with each of the above listed vendors. It was moved by Ybarra, seconded by Gonzales, that the communication from the City Clerk dated, February 10, 2000, be received and filed and the recommendation approved. Motion carried. RESOLUTION NO. 7482 - A Resolution of the City Council of the City of Vernon Accepting the Bids of Wesco Distribution, Inc., Cummins Utility Supply, Southwest Power, Inc. and Central Moloney, Inc., c/o Southcoast Utility Sales, on Bid No. 1387 for the Purchase of Overhead Distribution Transformers for the Utilities Department and Authorizing the Execution of Equipment Purchase Contracts and the Issuance of Purchase Orders Respecting Said Bid, was presented. It was moved by Davis, seconded by McCormick, that Resolution No. 7482 be approved and adopted. Motion carried. Communication from Bruce Olson, Police Chief, dated January 20, 2000, was presented, requesting authority and funds for himself to attend the Los Angeles County Police Chiefs Executive Seminar at Palm Springs on May 15th thru 17th, 2000, with an expense allowance of $329.20 of which POST reimburses $295.40. It was moved by Ybarra, seconded by Gonzales, that authority and funds be granted for Police Chief Bruce Olson to attend the aforementioned seminar with an expense allowance of $329.20. Motion carried. Communication from Bruce Olson, Police Chief, dated February 1, 2000, was presented, requesting authority and funds for Sergeant Penny Turner to attend the 2000 Women in Policing training course at Irvine on March 29th thru 30th, 2000, with an expense allowance of $259.40 of which POST reimburses $255.40. It was moved by Davis, seconded by McCormick, that authority and funds be granted for Sergeant Penny Turner to attend the aforementioned training course with an expense allowance of $259.40. Motion carried. Communication from Bruce Olson, Police Chief, dated February 1, 2000, was presented, requesting authority and funds for Lieutenant Steve Towles to attend the Office of Traffic Safety Grant Writing Workshop at Palm Springs on March 20th, 2000, with an expense allowance of $202.50. It was moved by Davis, seconded by Ybarra, that authority and funds be granted for Lieutenant Steve Towles to attend the aforementioned workshop with an expense allowance of $202.50. Motion carried. Communication from Bruce Olson, Police Chief, dated February 8, 2000, was presented, requesting authority and funds for Malcom Herrington, Senior Dispatcher, to attend the Civilian Supervisor Course at Huntington Beach on March 20th thru 29th, 2000, with an expense allowance of $190.84 of which POST reimburses $111.84. Page 13 of 18 City Council Minutes February 15, 2000 It was moved by Gonzales, seconded by McCormick, that authority and funds be granted for Malcom Herrington to attend the aforementioned course with an expense allowance of $190.84. Motion carried. Communication from Bruce Olson, Police Chief, dated February 8, 2000, was presented, requesting authority and funds for Lieutenant Steve Towles to attend the Information Technology Training Workshop at San Diego on April loth thru llth, 2000, with an expense allowance of $351.90. Communication from Bruce Olson, Police Chief, dated February 9, 2000, was presented, requesting authority and funds for the following personnel to attend the Pitchess Motion Update Course at Irvine on March 16th, 2000, with an expense allowance of $165.84 each, of which POST reimburses $163.64 each. • Elizabeth Sawickis, Records Manager • Theresa Nicholas, Assistant Records Manager • Solomon Benudiz, Captain It was moved by McCormick, seconded by Ybarra, that authority and funds be granted for the above listed personnel to attend the aforementioned update course with an expense allowance of $165.84 each. Motion carried. Communication from Bruce V. Malkenhorst, Director of Personnel, dated February 10, 2000, was presented, transmitting the Agenda for the Personnel Committee meeting to be held February 14, 2000, for approval of the recommendations contained therein. It was moved by Gonzales, seconded by Davis, that the recommendations listed on the Agenda for the Personnel Committee Meeting held February 14, 2000 be approved. Motion carried. Communication from Bruce V. Malkenhorst, Director of Finance, dated February 10, 2000, was presented, transmitting the Minutes of the Finance Committee meeting held February 8, 2000, for approval of the recommendations contained therein. It was moved by Ybarra, seconded by Davis, that the Minutes of the Finance Committee meeting held February 8, 2000 be approved as submitted and adopted. Motion carried. Communication from Bruce V. Malkenhorst, Director of Finance, dated February 10, 2000, was presented, transmitting the Agenda for the Finance Committee meeting to be held February 14, 2000, for approval of the recommendations contained therein. It was moved by McCormick, seconded by Gonzales, that the recommendations listed on the Agenda for the Finance Committee meeting held February 14, 2000 be approved. Motion carried. RESOLUTION NO. 7492 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Utilities Department to Seek Proposals to Purchase Power for the Next Five Years Pursuant to the Western Systems Power Pool (WSPP) Agreement, Approving and Authorizing the Financial Qualifications and Form of Documents for Proposed Power Suppliers, and Approving and Authorizing the Execution by the City Administrator of a Power Sales WSPP Confirmation Agreement Pursuant to Maximum not to Exceed Parameters as to Quantity and Price, was presented. Page 14 of 18 City Council Minutes February 15, 2000 It was moved by Gonzales, seconded by Ybarra, that Resolution No. 7492 be approved and adopted. Motion carried. Consideration of executing a Letter of Intent for Business Cooperation By and Between the City of Vernon, the City of Vernon Redevelopment Agency, and the City of Yucheng, Shondong Province, China, was presented. Councilman Gonzales responded to the Mayor's questions and advised that the Letter of Intent was not binding, but only relays our intent to do business cooperations between the City of Vernon and City of Yucheng, Shondong Province, China. RESOLUTION NO. 7499 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of a Non -Binding Letter of Intent to Promote Business Communication and Cooperation Among the Businesses Located in the Municipal City Of Yucheng, Shandong Province, China, the City Of Vernon, California And The Redevelopment Agency Of The City Of Vernon, California, was presented. It was moved by Davis, seconded by Ybarra, that Resolution No. 7499 be approved and adopted. Motion carried. WARRANT REGISTER NO. 1035 covering claims and demands presented during the period of January 28ththru February loth, 2000, drawn on Wells Fargo Bank totaling $842,942.79, and includes check Nos. 76180 thru 76416 (inclusive), excluding Utility demands and Voided checks as listed below (accounting period February, 2000), was examined and audited. 76223 76224 76225 76243 76244 76245 76246 76309 It was moved by Gonzales, seconded by Davis, that Warrant Register No. 1035 be approved and payment authorized for claims and demands totaling $842,942.79, excluding Utility claims and demands, and voided checks as listed above. Motion carried. WARRANT REGISTER NO. 1035 covering claims and demands presented during the period of January 28ththru February loth, 2000, drawn on Wells Fargo Bank totaling $1,529,689.79, which includes Utility demands and check Nos. as listed below: (accounting period February, 2000), was examined and audited. 76183 76185 76186 76187 76188 76191 76201 76204 76205 76206. 76213 76231 76232 76334 76235 76236 76248 76249 76252 76254 76260 76264 76269 76275 76278 76293 76301 76310 76313 76316 76318 76330 76332 76347 76351 76358 76362 76368 76369 76370 76373 76374 76383 76392 76393 76397 76401 76412 76413 It was moved by McCormick, seconded by Ybarra, that Warrant Register No. 1035 be approved and payment authorized for Utility claims and demands totaling $1,529,689.79. Motion carried. Councilman Davis abstained from voting and disqualified himself because it is reasonably foreseeable that the decision may have a material financial effect on his source of income. Page 15 of 18 City Council Minutes February 15, 2000 PAYROLL WARRANT REGISTER NO. 524 covering claims and demands presented during the period of December 19th, 1999 thru January 15th, 2000, drawn on Wells Fargo Bank totaling $1,775,621.75, which includes demand Nos. 6527 thru 6564 (inclusive), (accounting period January, 2000), was examined and audited. It was moved by Ybarra, seconded by Gonzales, that Payroll Warrant Register No. 524 be approved and payment authorized for claims and demands totaling $1,775,621.75. Motion carried. The Mayor called a recess at 5:56 p.m. The Council reconvened in Regular Session at 6:00 p.m., all members present before the recess again being present. The City Clerk advised there were no issues for Closed Session, Item Nos. 1 and 2. 1. With respect to every item of business to be discussed in Closed Session pursuant to Government Code Section 54957. a. EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE 2. With respect to every item of business to be discussed in closed session pursuant to subdivision (a) of Government Code Section 54956.9. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION (a) The City of Vernon v. The Atchison, Topeka and Santa Fe Railway, CPUC Case No. 96-01-019; (b) FERC Docket Nos. OA96-76, OA97-602, OA97-604, ER96- 222, (open access); (c) FERC Docket Nos. ER97-2355, EC 96-19-000, ER96-1633 and EL96-48 (Restructuring); (d) CPUC Application No. 96-10-038 (SDG&E/SoCalGas Merger); FERC Docket No. EL97-15 (ENOVA/PACIFIC ENTERPRISES); FERC Docket No. EC97-12-000; (e) Vernon Sem v. City of Vernon, WC No. POM 0187239, VNO Unassigned; (f) FERC Docket No. ER98-3594 (ISO); (g) CPUC Application No. 98-07-005; (h) FERC Docket No. ER98-3760 (ISO); (i) David Venegas, et al. v. City of Vernon, LASC No. BC 207136; (j) Utility Boring v. City of Vernon, et al., Norwalk Superior Court No. VC 029477; (k) Vernon v. All Persons; LASC No. BC 222145; (1) Cal Compact Landfill Site, Carson, California, Page 16 of 18 City Council Minutes February 15, 2000 It was moved by Gonzales, seconded by Ybarra, that Council go into Closed Session on Item No. 3, the time being 6:00 p.m. All persons were excluded from Closed Session except the City Clerk, City Attorney, Chief Deputy City Clerk, and the Director of Community Services and Water. Mayor ordered all communications to and from the Closed Session deemed privileged and confidential. 3. With respect to every item of business to be discussed in closed session pursuant to subdivision (c) of Government Code § 54956.9. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION Initiation of litigation: One (1) potential case. It was moved by McCormick, seconded by Davis, that the City Council go out of Closed Session pertaining to Item No. 3, the time being 6:23 p.m. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk dated, February 10, 2000, was presented, advising the City is one of 85 co-permittees under L.A. County's 1996 National Pollution Discharge Elimination Systems (NPDES) Permit. Staff of the Community Services and Water Department have been reviewing the NPDES permit process for renewal next year, and part of the renewal process requires five model programs submitted by the co- permittees to be approved by the State Regional Water Quality Control Board ("Board"). The Board, on January 27th of this year, adopted its own Model Program despite opposition of 82 of the 85 co-permittees. The program was reviewed by staff of the Community Services and Water Department who have found that: • The program is stringent and requires impractical mitigation measures; • The Board lacks scientific and engineering evidence to prove that their standards will result in cleaner water; • The Board did not conduct a cost benefit analysis, as required by the Clean Water Act and the Porter Cologne Act and; • The Board did not follow guidelines as outlined in their 1996 permit in order to approve their Model program for the 2001 permit. Based on the above, we opposed their Model Program in writing on September 8, 1999 and January 13, 2000. Other co-permittees are in the process of joining together to file a Petition of Review to the State Water Resources Control Board which must be done within 30 days of the adoption of the Program. This has been reviewed by the Director of Community Services and Water and the City Attorney, and it is hereby recommended that the City participate in filing a Petition to Review. It was moved by Ybarra, seconded by Gonzales, that the communication from the City Clerk dated, February 10, 2000, be received and filed and the recommendation approved. Page 17 of 18 City Council Minutes February 15, 2000 RESOLUTION NO. 7498 - A Resolution of the City Council of the City of Vernon Authorizing the Filing of a Petition to the State Water Resources Control Bord Contesting the Action Taken by the California Regional Water Quality Control Board, Los Angeles Region, and its Executive Officer in Connection with LARWQCB Order No. 96-054 and Authorizing the City to do all Other Actions deemed Necessary or Advisable Concerning the Administrative Review Process, was presented. It was moved by Gonzales, seconded by Davis, that Resolution No. 7498 be approved and adopted. Motion carried. There being no further business to come before the Council at this time, it was moved by McCormick, seconded by Davis, that the meeting adjourn. Motion carried. ATTEST: Bruce V. Malkenhorst City Clerk L nis C. M burg Mayor Page 18 of 18