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20080324 Regular City Council Meeting - MinutesMINUTES OF THE SPECIAL CITY COUNCIL MEETING OF THE CITY OF VERNON HELD MARCH 24, 2008, AT 10:04 A.M. IN THE COUNCIL CHAMBERS OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Malburg, Gonzales, Ybarra, Davis, McCormick MEMBERS ABSENT: None The meeting was called to order by Mayor Malburg. The City Clerk advised that there were no changes to the agenda. The City Administrator announced that now was time for anyone in the audience who wished to address the City Council on any agenda or non -agenda items other than with regard to any public hearings that may be listed. The Mayor asked if there was anyone in the audience who wished to address the City 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 continue the public hearing to consider evidence regarding the adoption of a new Transmission Revenue Requirement associated with the City's High Voltage Entitlements located outside the City, and an amended Transmission Owner Tariff, pursuant to the City's participation in the California Independent System Operator. It was moved by Gonzales, seconded by Davis, to continue the public hearing to consider evidence regarding the adoption of a new Transmission Revenue Requirement associated with the City's High Voltage Entitlements located outside the City, and an amended Transmission Owner Tariff, pursuant to the City's participation in the California Independent System Operator, the time being 10:05 a.m. Motion carried. The Mayor asked if there was anyone in the audience who wished to address the City Council on this matter. The Director of Light & Power explained in detail the two agreements related to the transmission entitlements sale transaction: 1) the Mead -Phoenix Project and the Mead-Adelanto Project, and 2) the California -Oregon Transmission Project. He also detailed the transaction process, including the involvement of the City's outside legal counsel in the preparation of the documents related to the sale. Mr. Dennis Ehling, an attorney with K&L Gates, outside legal counsel to the City, introduced himself and summarized the thorough preparation of the documents related to the transmission entitlements sale transaction. He advised that the documents would allow the City the flexibility to act immediately upon the close of each transaction. Special City Council Meeting Minutes March 24, 2008 Mayor Pro-Tem Gonzales asked if the documents had been prepared in such a manner as to enable the City to move forward in spite of any eventualities. The Mayor asked what the turnaround time would be once the documents were submitted for filing to the Federal Energy Regulatory Committee (FERC). Mr. Ehling advised that the documents were prepared in such a manner as to avoid any eventualities that may arise. He stated that he anticipated FERC responding fairly quickly once the documents are submitted for filing as FERC is in favor of the City selling its transmission entitlements. The Mayor asked if there was anyone else who wished to address the City Council on this matter. There was no one else who wished to address the City Council on this matter. It was moved by McCormick, seconded by Gonzales, to close the public hearing to consider evidence regarding the adoption of a new Transmission Revenue Requirement associated with the City's High Voltage Entitlements located outside the City, and an amended Transmission Owner Tariff, pursuant to the City's participation in the California Independent System Operator, the time being 10:23 a.m. Motion carried. RESOLUTION NO. 9562 - A Resolution of the City Council of the City of Vernon Adopting a New Transmission Revenue Requirement Associated with Vernon's High Voltage (Over 200 KV) Entitlements Located Outside of the City and Adopting an Amended Transmission Owner Tariff for Purposes of the City's Participation in the California Independent System Operator, was read by title. It was moved by Gonzales, seconded by Ybarra, that Resolution No. 9562 be approved and adopted. Motion carried. RESOLUTION NO. 9579 - A Resolution of the City Council of the City of Vernon Rescinding Resolution No. 9553 and the Vehicle Purchase Contract with Ostrom Chevrolet and Accepting the Bid of Maurice J. Sopp & Son aka Sopp Chevrolet on Bid No. 1452 for the Purchase of a 2008 Chevrolet Silverado HD 2500 Truck for the Light & Power Department and Approving and Authorizing the Execution of a Vehicle Purchase Contract and the Issuance of a Purchase Order Respecting said Bid, was read by title. It was moved by Davis, seconded by McCormick, that Resolution No. 9579 be approved and adopted. Motion carried. The City Clerk announced that now was the time for reports from departments. The following Department Heads had nothing to report at the time: 1. Fire Chief 2. Chief of Police 3. Director of Personnel 4. City Treasurer Page 2 of 4 Special City Council Meeting Minutes March 24, 2008 5. Finance Director 6. Director of Environmental Health 7. City Clerk The Director of Community Services & Water advised that the budget for the 26th Street Storm Drain Project is large enough to include the reconstruction of the storm drain on Ayers Avenue in addition to the storm drains on Indiana Street and Bonnie Beach Place. He asked the City Council for direction with regard to the possibility of issuing a change order to include Ayers Avenue in the contract. The entire City Council directed the Director of Community Services & Water to prepare a change order to include the reconstruction of the storm drain on Ayers Avenue to the 26th Street Storm Drain Project contract and present said change order at future meeting for final action. The Director of Light & Power reported on a hit and run incident that occurred on March 18, 2008, in which a truck hit a power pole on the corner of Boyle Avenue and Fruitland Avenue. The accident caused a long outage that affected several local businesses. Repairs were completed at approximately 1:30 p.m. the following day. The Mayor asked the Chief of Police if he had any information on the truck that hit the power pole. The Chief of Police responded that he did not have any information at the time, but would look into the matter. The City Clerk announced that now was the time to go into closed session. It was moved by Gonzales, seconded by Davis, that the City Council go into closed session, the time being 10:40 a.m. Motion carried. Everyone was excluded from closed session with the exception of the Chief Deputy City Attorney and outside legal counsel. The Mayor ordered all communications to and from closed session deemed privileged and confidential. It was moved by McCormick, seconded by Ybarra, that the City Council go out of closed session and resume regular session, the time being 10:53 a.m. Motion carried. It was reported out that the City Council had a conference in closed session with legal counsel regarding the following existing litigation cases pursuant to subdivision (a) of Government Code Section 54956.9, settlement authority was granted to the City Attorney's Office with regard to all cases listed. 1. FERC Docket Nos. EL00-95, EL00-98; Judicial Council Coordination Proceeding No. 4512; (LASC Case No. BC369141); USCA Case No. 07-15638 2. FERC Docket Nos. EL00-105 and ER00-2019 Page 3 of 4 Special City Council Meeting Minutes March 24, 2008 There being no further business to come before the City Council at this time, it was moved by McCormick, seconded by Davis, that the meeting be adjourned, the time being 10:53 a.m. Motion carried. ATTF,ST : 1 r Manuela Giron City Clerk �a�e: L�oni C. Malburg Title: Mayor Page 4 of 4