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20000919 Regular City Council Meeting - MinutesMINUTES OF THE CITY COUNCIL MEETING OF THE CITY OF VERNON HELD SEPTEMBER 19, 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, McCormick, Davis MEMBERS ABSENT: None The meeting was called to order by Mayor Malburg It was moved by Ybarra, seconded by Davis, that the Minutes of the Adjourned City Council Meetings held August 29, and September 5, 2000 be deferred to the next City Council meeting. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 13, 2000, was presented, advising that the below listed employees have qualified in the month of August 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 09/06/87 Andrew Thompson Utilityman 5 08/23/93 Ana Bedoy Police Dispatcher 7 09/01/78 Robert Kipness Foreman 7 08/27/84 William Wilson Engineering Aide 8 05/27/84 Manuel Garcia Systems Manager 14 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. 04/24/95 Malcolm Herrington Senior Dispatcher 3 08/11/97 Roberto Sousa Police Officer 3 09/18/89 Gregory Bringhurst Firefighter 4 06/18/90 Benjamin Potter Academy Cadet 8 The Mayor called a short recess at 5:05 p.m. The City Council reconvened at 5:08 p.m., all members present before the recess again being present. Health Department Report for the month of August 2000, was presented. It was moved by Gonzales, seconded by Ybarra, that the Health Department Report for the month of August 2000, be received and filed. Motion carried. Risk Management Report for the month of August 2000, was presented. It was moved by McCormick, seconded by Davis, that the Risk Management Report for the month of August 2000, be received and filed. Motion carried. City Council Minutes September 19, 2000 Police Department Activity Log for the period September 18t thru September 15th, 2000, was presented. It was moved by Davis, seconded by Gonzales, that the Police Department Activity Log for the period September lst thru September 15th, 2000, be received and filed. Motion carried. Fire Department Activity Report for the period September lst thru September 15th, 2000, was presented. It was moved by Ybarra, seconded by McCormick, that the Fire Department Activity Report for the period September 1st thru September 15th, 2000, be received and filed. Motion carried. The City Clerk advised 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 there was no one wishing to address the City Council at this time. Communication from Bruce Olson, Police Chief, dated August 31, 2000, was presented, requesting authority and funds for Michael Galindo, Police Detective, to attend the Basic Traffic Collison Investigation Course at Whittier on October 9th thru 13th, 2000, with an expense allowance of $89.00 of which POST will reimburse $79.00. It was moved by Davis, seconded by Ybarra, that authority and funds be granted for Michael Galindo to attend the aforementioned course with an expense allowance of $89.00 of which POST will reimburse $79.00. Motion carried. Communication from Bruce Olson, Police Chief, dated August 31, 2000, was presented, requesting authority and funds for Malcolm Herrington, Dispatch Supervisor, to attend the C.L.E.T.S. Users Group Conference at Anaheim on October 9th thru 13th, 2000, with an expense allowance of $400.00. It was moved by McCormick, seconded by Gonzales, that authority and funds be granted for Malcolm Herrington to attend the aforementioned conference with an expense allowance of $400.00. Motion carried. Communication from Bruce Olson, Police Chief, dated September 7, 2000, was presented, requesting authority and funds for the following police personnel to attend the California Association of Police Officers Training Conference at Sacramento on October loth thru 12th, 2000, with an expense allowance of $637.68 each: Daniel Calleros, Police Sergeant James Rodino, Police Lieutenant It was moved by Ybarra, seconded by Davis, that authority and funds be granted for Daniel Calleros and James Rodino to attend the aforementioned training conference with an expense allowance of $637.68 each. Motion carried. Page 2 of 14 City Council Minutes September 19, 2000 Communication from Kevin Wilson, Director of Community Services and Water, dated September 13, 2000, was presented, requesting authority and funds for Scott Rigg, Water Operations Supervisor, to attend the Optimizing Use of Ground Water Resources Conference at Lakewood on October 19th, 2000, with an expense allowance of $95.00. It was moved by Davis, seconded by McCormick, that authority and funds be granted for Scott Rigg to attend the aforementioned conference with an expense allowance of $95.00. Motion carried. Communication from Kenneth DeDario, Director of Utilities, dated September 14, 2000, was presented, requesting authority and funds for himself to attend the Southern California Public Power Authority Annual Meeting at Rancho Mirage on October 19th and 20th, 2000, with an expense allowance of $304.90. It was moved by Gonzales, seconded by Ybarra, that authority and funds be granted for Kenneth DeDario to attend the aforementioned meeting with an expense allowance of $304.90. Motion carried. Communication from Samuel K. Wilson, Director of Community Services, dated September 12, 2000, was presented, advising that Resolution No. 7587 authorized the Purchasing Section to seek formal bids for Contract No. 552, Traffic Signal Synchronization Santa Fe Avenue 25th/26th Street to 55th Street, Soto Street, 26th Street to Fruitland Avenue. The bids were opened on September 5, 2000 with the following results: 1) KDC, Inc. dba Dynalectric $330.750.00 2) Inspection Engineering $409,000.00 3) C.T. & F. $420,749.00 4) Steiny & Company $423,000.00 The bids are based on items one thru three. Items four and five are optional bid items which are being deleted. The specification states items four and five could be deleted from the work scope. The bids have been reviewed and approved by the Community Services and Water Department, and it is hereby recommended that the contract be awarded to KDC, Inc. dba Dynalectric, 4462 Corporate Center Drive, Los Alamitos, California 90720 on the basis of their bid of $330,750.00. It was moved by Gonzales, seconded by Davis, that the aforementioned communication from the Director of Community Services and Water dated September 12, 2000, be received and filed and his recommendation approved. Motion carried. RESOLUTION No. 7617 - A Resolution Of The City Council Of The City Of Vernon Accepting The Bid Of KDC, Inc. Dba Dynalectric For Traffic Signal Synchronization In Accordance With Contract No. 552 Of The City Of Vernon And Aproving The Execution Of Said Contract, was presented. It was moved by McCormick, seconded by Ybarra, that Resolution No. 7617 be approved and adopted. Motion carried.. Page 3 of 14 City Council Minutes September 19, 2000 Communication from Bruce V. Malkenhorst, City Clerk, dated September 13, 2000, was presented, advising that Rieder Enterprises, LLC and the Burlington Northern and Santa Fe Railway Company (BNSF) are the owners of four adjoining parcels of land located at the southwest corner of Downey Avenue and Vernon Avenue in the City of Vernon. Rieder Enterprises, LLC and BNSF have requested an adjustment of the boundary lines between the parcels. The boundary line adjustment will result in Rieder Enterprises, LLC merging three lots into one and portion of land being transferred from BNSF to Rieder Enterprises, LLC. It is hereby recommended that the requested lot line adjustment be granted. It was moved by Ybarra, seconded by Gonzales, that the aforementioned communication from the City Clerk dated September 13, 2000, be received and filed and his recommendation approved. Motion carried. RESOLUTION No. 7618 - A Resolution Of The City Of Vernon Approving A Lot Line Adjustment Requested By Rieder Enterprises, LLC And The Burlington Northern And Santa Fe Railway Company (BNSF), was presented. It was moved by McCormick, seconded by Davis, that Resolution No. 7618 be approved and adopted. Motion carried. Communication from Samuel K. Wilson, Director of Community Services and Water, dated September 12, 2000, was presented, advising that the Traffic Pavement Striping 1999-2000 contract expires October 26, 2000. The contract provides for extension by mutual agreement under the Section Contract Extension of the Special Provisions. Paving Contractors, Inc., has indicated that they would like to continue under the present contract. Under the Compensation Section of the Special Provisions they are eligible for Consumer Price Index (CPI) increase in the contract which would be 750 of the CPI as published November 1, 2000. The present CPI is 2.9% and therefore the present contract amount of $29,978.38 would increase to approximately $30,630.41 and it is hereby recommended that the contract be extended to October 27, 2001. It was moved by McCormick, seconded by Gonzales, that the aforementioned communication from the Director of Community Services and Water dated September 12, 2000, be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7623 - A Resolution Of The City Council Of The City Of Vernon Approving And Authorizing The Execution Of A One -Year Extension Of Contract No. 553 (October 27, 2000- October 26, 2001) By And Between The City Of Vernon And PCI LTD. Through Its General Partner, Paving Contractors, Inc, was presented. It was moved by Davis, seconded by McCormick that Resolution No. 7623 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 13, 2000, was presented, advising that in 1998, the City Council authorized a consulting agreement with K.J. Page 4 of 14 City Council Minutes September 19, 2000 Services to assist the Environmental Health Department with the implementation of the Used Oil Recycling Program using funds from a California Integrated Waste Management Board grant and that for the last two years, K.J. Services has favorably performed and assisted the used oil recycling center certified in Vernon, Commercial Tire, located at 3368 Leonis Blvd., and it was also involved with the 2000 Used Oil Artwork Contest and Poster School Outreach Program. Based on the aforementioned information, the Health Department would like to again enter into an agreement with K.J. Services for the fiscal year 2000-2001. Funds to cover this cost will be taken from the Used Oil Program Grant that we recently received. It was moved by Gonzales, seconded by McCormick, that the aforementioned communication from the City Clerk dated September 13, 2000, be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7625 - 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 KJ Services Relating To Vernon's Used Oil Block Grant For 2000-2001 Grant Year, was presented. It was moved by Ybarra, seconded by Davis, that Resolution No. 7625 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 13, 2000, was presented, advising that as part of the Alameda Corridor Project either Santa Fe Avenue or Soto Street traffic signals were to undergo signal synchronization. As part of the original Memorandum of Understanding with the Alameda Corridor Transportation Authority (ACTA), ACTA will reimburse the City's costs for this project up to $500,000.00. The County of Los Angeles had scheduled traffic synchronization of Santa Fe Avenue in 2003 and it was determined that it was in the best interest of all parties if the County allowed the City to administer the project in order to expedite the construction. This project will aide in moving traffic that is presently being diverted from the Corridor onto Soto Street and Santa Fe Avenue. The County is proposing to contribute $486,000.00 toward the cost utilizing Los Angeles County Metropolitan Transportation Authority Grant Funds towards the project and the City presently has the project out for bid. Submitted, herewith is the Agreement by and between the City of Vernon and the County of Los Angeles for approval and it is hereby recommended that the attached Agreement be approved. It was moved by Gonzales, seconded by Ybarra, that the aforementioned communication from the City Clerk dated September 13, 2000, be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7624 - A Resolution Of The City Council Of The City Of Vernon Approving And Authorizing The Execution Of An Agreement By And Between The City Of Vernon And The County Of Los Angeles For Synchronization Of Traffic Signals Along Santa Fe Avenue, was presented. Page 5 of 14 City Council Minutes September 19, 2000 It was moved by Davis, seconded by McCormick that Resolution No. 7624 be approved and adopted. Motion carried. Hearing to consider the voluntary termination of a non-exclusive franchise agreement with Calsan, Inc. It was moved by Gonzales, seconded by Davis, to open a hearing to consider the voluntary termination of a Non-exclusive Franchise Agreement with Calsan, Inc, the time being 5:18 p.m. Motion carried. The Director of Environmental Health Department addressed the City Council and briefly summarized this issue. Communication from Bruce V. Malkenhorst, City Clerk, dated September 14, 2000, was presented, advising that on April 1, 1999 Calsan, Inc, entered into a Non-exclusive Franchise Agreement for Solid Waste Management Services with the City of Vernon. The Environmental Health Department is in receipt of a "Notice of Intention to Abandon the Solid Waste Management Non- exclusive Franchise and Request to Terminate the Agreement," from Calsan, Inc. dated August 1, 2000. Calsan, Inc. has been purchased by Metropolitan Waste and no longer wishes to operate under the Non-exclusive agreement. It is hereby recommended that the Calsan, Inc. Non-exclusive Franchise Agreement be terminated. The Mayor asked, "does that mean they will be operating as Metropolitan?" The Director of Environmental Health responded, "yes" It was moved by Ybarra, seconded by Gonzales, to close the hearing for a voluntary termination of a Non-exclusive Franchise Agreement with Calsan Inc., the time being 5:19 p.m. Motion carried. It was moved by Davis, seconded by Gonzales, that the communication from the City Clerk dated September 14, 2000, and all supporting documents submitted as evidence during the hearing be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7622 - A Resolution Of The City Council Of The City Of Vernon Terminating The Non -Exclusive Solid Waste Franchise Granted To Calsan, Inc. By The City Of Vernon Pursuant To Resolution No. 7299, was presented. It was moved by Ybarra, seconded by McCormick, that Resolution No. 7622 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, dated September 14, 2000, was presented, transmitting a one-year lease Water Right License and Agreement with Seven-Up/RC Bottling Company of Southern California for the rights to 89 acre-feet of water. The cost of this water is $235.00 per acre-foot or $20,915.00 total. This has been reviewed by the Director of Community Services and the City Attorney, and it is hereby recommended that the Agreement be approved and the Mayor and City Clerk be authorized to sign the Agreement. Page 6 of 14 City Council Minutes September 19, 2000 It was moved by Gonzales, seconded by Davis, that the aforementioned communication from the City Clerk dated September 14, 2000, be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7633 - A Resolution Of The City Council Of The City Of Vernon Approving And Authorizing The Execution Of A Water Right License By And Between The City Of Vernon And Seven-Up/RC Bottling Company, Which Grants The City Of Vernon A License To Extract 89 Acre -Feet Of The Allowed Pumping Allocation Of Seven-Up/RC Bottling Company For The Period July 1, 2000 Through June 30, 2001, was presented. The Mayor asked, "does each property have water rights?" The Director of Community Services and Water, "no, there are only about ten (10) companies that have water rights". It was moved by Ybarra, seconded by Gonzales, that Resolution No. 7633 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 14, 2000, was presented, advising that on May 16, 2000, the City Council approved Resolution No. 7533 that authorized an application for grant funds under the California Beverage Container Recycling and Litter Reduction Act and the California Department of Conservation has notified us that the funding request for $5,000.00 has been approved. K.J. Services has submitted a proposal in an attempt to assist the City in the development and implementation of the Beverage Container Recycling and Litter Reduction Program. K.J. Services has assisted the city in other grant related recycling projects and it is hereby recommended that their be retained for the development and implementation of the Beverage Container Recycling Program. It was moved by Gonzales, seconded by Ybarra, that the aforementioned communication from the City Clerk dated September 14, 2000, be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7626 - 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 KJ Services Relating To Department Of Conservation SB 332 Recycling Grant For 2000-2001 Grant Year, was presented. It was moved by Davis, seconded by McCormick, that Resolution No. 7626 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 14, 2000, was presented, advising that the Police Department has applied for a California Office of Traffic Safety (COTS) Grant from the State. The funds can be used for Police Department projects relating to Street issues that can assist us in attempts to reduce traffic collisions and the grant could be as much as $359,000.00. It is hereby recommended that the application submitted by the Police Department be approved and ratified. Page 7 of 14 City Council Minutes September 19, 2000 It was moved by McCormick, seconded by Ybarra, that the aforementioned communication from the City Clerk dated September 14, 2000, be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7634 - A Resolution Of The City Council Of The City Of Vernon Approving And Ratifying The Submission Of A Traffic Safety Proposal For A Strategic Traffic Enforcement Project (Police Traffic Services/Speed Control Program) Grant From The California Office Of Traffic Safety, was presented. It was moved by Gonzales, seconded by Davis, that Resolution No. 7634 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, Director of Personnel, dated September 14, 2000, was presented, transmitting the Agenda for the Personnel Committee meeting to be held September 18, 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 September 18, 2000 be approved. Motion carried. Communication from Bruce V. Malkenhorst, Director of Finance, dated September 14, 2000, was presented, transmitting the Minutes of the Finance Committee meeting held September 12, 2000 for approval of the recommendations contained therein. It was moved by Ybarra, seconded by McCormick, that the Minutes of the Finance Committee meeting held September 12, 2000 be approved. Motion carried. RESOLUTION No. 7635 - A Resolution Of The City Council Of The City Of Vernon Adopting The City Of Vernon Supplemental Executive Retirement Plan ("Plan") And Approving And Authorizing The Execution Of The City Of Vernon Trust Under Supplemental Executive Retirement Plan And Authorizing The City Administrator To Execute Any Additional Documents On Behalf Of The City To Implement The Plan And Comply With The Requirements Of The Internal Revenue Code Of 1986, As Amended, was presented. It was moved by Gonzales, seconded by Davis, that Resolution No. 7635 be approved and adopted. Motion carried. RESOLUTION NO. 7631 - A Resolution Of The City Council Of The City Of Vernon Amending Resolution No. 7560, Which Approved A Budget For The Fiscal Year 2000-01, To Reflect Increases, was presented. It was moved by Ybarra, seconded by McCormick, that Resolution No. 7631 be approved and adopted. Motion carried. Page 8 of 14 City Council Minutes September 19, 2000 RESOLUTION NO. 7621 - A Resolution Of The City Council Of The City Of Vernon Approving And Ratifying The Execution Of A Pollution Legal Liability Application And Approving A Pollution Legal Liability Policy With American International Specialty Lines Insurance Co. For Excess Insurance Coverage Relating To Vernon's Standard Non -Exclusive Franchise Agreement For Solid Waste Management Services, was presented. It was moved by McCormick, seconded by Gonzales, that Resolution No. 7621 be approved and adopted. Motion carried. Consideration and discussion of renewing the agreement for Ivanhoe Energy Services & Development, Inc. RESOLUTION NO. 7637 - A Resolution Of The City Council Of The City Of Vernon Approving And Authorizing The Execution Of An Amendment No. One To The Agreement For Consulting Services By And Among The City Of Vernon, The Redevelopment Agency Of The City Of Vernon And Ivanhoe Energy Services & Development, Inc. It was moved by Gonzales, seconded by Davis, that the aforementioned consideration and Resolution No. 7637 be referred to the Finance Committee meeting to be held September 26, 2000. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 14, 2000, was presented, advising that on June 6, 2000, the City Council approved and adopted Resolution No. 7541 for a lot line adjustment requested by Penske Truck Leasing, Vernon 2288 LLC, and Hung Yuan Yang for property located at 2288 E. 27th Street & 2701 Santa Fe Avenue. It has been discovered that Resolution No. 7541 contains discrepancies in legal descriptions. In order to correct such legal discrepancies it is hereby recommended that Resolution No. 7541 be rescinded and a resolution be adopted authorizing said changes. It was moved by McCormick, seconded by Ybarra, that the aforementioned communication from the City Clerk dated September 14, 2000 be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7620 - A Resolution Of The City Council Of the City Of Vernon Approving A Lot Line Adjustment Requested By Penske Truck Leasing, Vernon 2288 LLC, And Hung Yuan Yang And Rescinding Resolution No. 7541, was presented. It was moved by Ybarra, seconded by Davis, that Resolution No. 7620 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 14, 2000, was presented, advising that on March 21, 2000 City Council approved and adopted the City of Vernon Utilities Department Public Benefits Programs that included five programs in the area of energy efficiency and that are being funded by the Public Benefits Charge collected directly from the customers. Two of the five programs were approved for implementation at the time. Two additional programs, the Customer Incentive and Customer Directed programs are ready for implementation and it is hereby recommended that approval be granted to introduce these programs to our customers. Page 9 of 14 City Council Minutes September 19, 2000 The Director of Utilities addressed the City Council and briefly summarized this matter. RESOLUTION NO. 7632 - A Resolution Of The City Council Of The City Of Vernon Approving And Authorizing For Implementation The Customer Incentive And Customer Directed Programs Relating To The City Of Vernon Utilities Department Public Benefits Programs, was presented. It was moved by McCormick, seconded by Gonzales, that Resolution No. 7632 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 14, 2000, was presented, advising that Resolution No. 7587 authorized the Purchasing section to seek formal bids for various overhead distribution transformers and padmount transformers. The bids were opened on August 29, 2000 with the following results: 1) General Electric $181,400.00 c/o Southwest Power 2) ABB Power c/o Wesco $212,008.82 3) Central Moloney $ 19,311.00 c/o Southcoast Utility The above listed bids have been reviewed and evaluated by the Utilities Department based on total ownership cost excluding tax and it is hereby recommended that Bid #1398 be accepted and authorization be granted to issue purchase orders to the above vendors in the amounts listed plus applicable sales tax. It was moved by Gonzales, seconded by Ybarra, that the aforementioned communication from the City Clerk dated September 14, 2000 be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7619 - A Resolution Of The City Council Of The City Of Vernon Accepting The Bids Of WESCO Distribution, Inc., Southwest Power, Inc. And Central Moloney, Inc., c/o Southcoast Utility Sales, On Bid No. 1398 For The Purchase Of Overhead Distribution Transformers And Padmounted Transformers For The Utilities Department And Approving Authorizing The Execution Of Equipment Purchase Contracts And The Issuance Of Purchase Orders Respecting Said Bid, was presented. It was moved by Ybarra, seconded by Gonzales, that Resolution No. 7619 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 14, 2000, was presented, submitting a one-year lease agreement with Ionics Ultrapure Water Corporation providing one (1) Reverse Osmosis/Deionization System which will maintain the quality of water used to run the turbines. The agreement has been reviewed by the City Attorney and it is hereby recommended that approval be granted and the Agreement be executed. Page 10 of 14 City Council Minutes September 19, 2000 It was moved by Gonzales, seconded by Davis, that the aforementioned communication from the City Clerk dated September 14, 2000 be received and filed and his recommendation approved. Motion carried. RESOLUTION NO. 7630 - A Resolution Of The City Council Of The City Of Vernon Approving And Authorizing The Execution Of A Lease By And Between The City Of Vernon And Ionics Ultrapure Water Corp. Providing For Purified Water For The Operation And Maintenance Of The Turbine Generators, was presented. It was moved by McCormick, seconded by Gonzales, that Resolution No. 7630 be approved and adopted. Motion carried. Consideration of approval of memorandum of understanding between the Burlington Northern and Santa Fe Railway Company and the City of Vernon regarding violations of the California Public Utilities Commission's General Order Number 135. The City Attorney addressed the City Council and briefly summarized this matter. Councilman Davis asked, "how many citations have we issued?" Chief of Police replied that he believed there were about seven but that there could be more. Councilman Davis asked if that was in one year? Police Captain Benudiz responded that it was since April, 2000 The Mayor asked if we we have any type of agreement with Santa Fe Railway Company? City Attorney responded that no we don't. RESOLUTION NO. 7628 - A Resolution Of The City Council Of The City Of Vernon Approving And Authorizing The Execution Of A Memorandum Of Understanding By And Between The City Of Vernon And The Burlington Northern And Santa Fe Railway Company Relating To HPMC Case No. OSE02192 And Violations Of CPUC General Order Number 135, was presented. It was moved by McCormick, seconded by Gonzales, that Resolution No. 7628 be approved and adopted. Motion carried. Consideration of Redevelopment Revolving Fund Loan No. 7 Between the City of Vernon and the Redevelopment Agency of the City of Vernon. RESOLUTION NO. 7629 - A Resolution Of The City Council Of The City Of Vernon Approving And Authorizing (1) The Transfer Of Funds To The Redevelopment Revolving Fund; (2) The Payment Of Monies In The Redevelopment Revolving Fund To The Redevelopment Agency Of The City Of Vernon; And (3) The Execution Of Redevelopment Revolving Fund Loan No. 7 Between The City Of Vernon And The Redevelopment Agency Of The City Of Vernon. Page 11 of 14 City Council Minutes September 19, 2000 It was moved by Gonzales, seconded by Davis, that the aforementioned consideration and Resolution No. 7629 be deferred to the Adjourned City Council meeting to be held September 26, 2000. Motion carried. Consideration of a Natural Gas Sales Agreement Between TXU Energy Services, Inc. and the City of Vernon for gas supply for the turbines. The Director of Utilities addressed the City Council and briefly summarized this matter. RESOLUTION NO. 7636 - A Resolution Of The City Council Of The City Of Approving And Authorizing The Execution Of A Natural Gas Sales Agreement By And Between The City Of Vernon And TXU Energy Services, Inc, was presented. It was moved by McCormick, seconded by Ybarra, that Resolution No. 7636 be approved and adopted. Motion carried. Communication from Bruce V. Malkenhorst, City Clerk, dated September 14, 2000, was presented, transmitting a memorandum submitted by Kenneth J. DeDario, Director of Utilities, regarding increased costs in utility rates. Staff will be submitting on Tuesday a detailed report that represents the necessary changes in our electric rates. Based on the Director of Utilities' memorandum dated September 13, 2000, and the rate information to be submitted on September 19, 2000, it is hereby recommended that the City of Vernon Utilities Department electric rates be increased pursuant to the information being submitted this date. Report from Ken DeDario, Director of Utilities, dated September 19, 2000, was presented, regarding projections in energy related costs and the proposed increase in electric rates of 0.5536, per kWh effective October 1, 2000. This is equal to an average rate increase of approximately 9.75%, however the City of Vernon will continue to have one of the lowest electric rates in the State. Vernon will have rates that are approximately 13-390 below Edison's and 17-40% below the LADWP. The Director of Utilities addressed the City Council and briefly summarized this matter. RESOLUTION NO. 7638 - A Resolution Of The City Council Of The City Of Vernon Amending Resolution Nos. 7557, 7248 And 7062 Which Provided For The Establishment Of Electrical Rates To Be Charged For Electrical Energy Distributed And Supplied By Said City Within Its Boundaries By Amending Rate Schedules D, GS-1, GS-2, LS-1, LS-2, OL-1, PA-1, PA-2, PA-TOU, TC-1, TOU-G And TOU-V, was presented. It was moved by Gonzales, seconded by Ybarra, that Resolution No. 7638 be approved and adopted. Motion carried. WARRANT REGISTER NO. 1049 covering claims and demands presented during the period of September 1st, thru September 14tn, 2000, drawn on Wells Fargo Bank totaling $1,223,622.16, and includes check Nos. 79420 thru 79644 (inclusive), excluding Utility demands and voided check Nos. 79482 thru 79485 (accounting period September, 2000). Page 12 of 14 City Council Minutes September 19, 2000 It was moved by Davis, seconded by McCormick, that Warrant Register No. 1049 be approved and payment authorized for claims and demands totaling $1,223,622.16, excluding Utility demands and voided checks as mentioned above. Motion carried. PAYROLL WARRANT REGISTER NO. 531 covering claims and demands presented during the period of July 16th, thru August 12th, 2000, drawn on Wells Fargo Bank totaling $1,666,992.50, which includes demand Nos. 6775 thru 6811 (inclusive), (accounting period August, 2000). It was moved by Gonzales, seconded by Ybarra, that Payroll Warrant Register No. 531 be approved and payment authorized for claims and demands totaling $1,666,992.50. Motion carried. WARRANT REGISTER NO. 1049 covering claims and demands presented during the period of September 1st, thru September 14th, drawn on Wells Fargo Bank totaling $3,317,264.45, which includes Utility demands and check Nos. as listed below: (accounting period September, 2000): 79425 79433 79434 79452 79459 79466 79467 79468 79474 79475 79479 79487 79488 79492 79495 79496 79501 79503 79514 79517 79521 79527 79528 79529 79545 79561 79572 79578 79592 79595 79596 79608 79609 79610 79612 79613 79614 79616 79617 79619 79622 79623 79626 79640 79643 79644 It was moved by McCormick, seconded by Gonzales, that Warrant Register No. 1049 be approved and payment authorized for Utility claims and demands totaling $3,317,264.45. 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. The Mayor called a recess at 6:11 p.m. The Council reconvened in Regular Session at 6:26 p.m., all members present before the recess again being present. The City Clerk advised that there were no items to be discussed in closed session at this time. 1. With respect to every item of business to be discussed in closed session pursuant to subdivision (a) of Government Code § 54956.9. CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION (a) The City of Vernon v. The Atchison, Topeka and Santa Fe Railway, CPUC Case No. 96-01-019; (b) FERC Docket Nos. ER97-2355, EC 96-19-000, ER96-1633 and EL96-48 (Restructuring); (c) Vernon Sem v. City of Vernon, WC No. POM 0187239, VNO Unassigned; Page 13 of 14 City Council Minutes September 19, 2000 (d) FERC Docket No. ER98-3594 (ISO); (e) FERC Docket No. ER98-3760 (ISO); (f) David Venegas, et al. v. City of Vernon, LASC No. BC 207136; (g) Vernon v. All Persons; LASC No. BC 222145; (h) Cal Compact Landfill Site, Carson, California; EPA No. Unassigned; (i) Vernon v. Regional Water Quality Control Board; Nos. A- 1280, A1280(a) and A-1280(b); (j) Arnold Klein dba AMRO Industries v. City of Vernon, Kevin Wilson, Jerry Schreiber, et al., LASC No. BC 226167; (k) FERC Docket No. EL00-58-000 (ISO); (1) City of Torrance, et al v. State Compensation Insurance Fund, Case Number Unknown; (m) Mark A. Suarez v. New Matic Construction, etc., et al., LASC No. BC 228903; (n) FERC Docket No. ER00-2019-000 (ISO); There being no further business to come before the Council at this time, it was moved by McCormick, seconded by Ybarra, that the meeting adjourn to September 26, 2000 at 4:30 p.m. Motion carried. ATTEST: Bruce V. Malkenhorst City Clerk y L is C. Malb Page 14 of 14 NOTICE OF ADJOURNMENT Notice is hereby given that the City Council meeting held September 19, 2000 at 5:00 p.m., was adjourned to September 26, 2000 at 5:00 p.m. to be held in the City Council Chambers of the City Hall located at 4305 Santa Fe Avenue, Vernon, California, by order of the City Council. 014., STATE OF CALIFORNIA COUNTY OF LOS ANGELES Chief Depu City Clerk AFFIDAVIT OF POSTING NOTICE OF ADJOURNMENT ss I, Gloria J. Orosco, declare as follows: That I am the Chief Deputy City Clerk of the City of Vernon, and that a regular meeting of the City Council of the City of Vernon held September 19, 2000 was adjourned to September 26, 2000 and that a copy of said notice (as set forth above) was posted at a conspicuous place near the door of the room at which said meeting was to be held, within 24 hours of said adjournment. I declare under penalty of perjury that the foregoing is true and correct. d at Executed on City Clerk Vernon, California.