20091102 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL
MEETING OF THE CITY OF VERNON HELD
MONDAY, NOVEMBER 2, 2009, AT 9:00 A.M.
IN THE COUNCIL CHAMBERS OF THE CITY HALL
LOCATED AT 4305 SANTA FE AVENUE,
VERNON, CALIFORNIA
MEMBERS PRESENT: Gonzales, McCormick, Davis, Maisano, Newmire
MEMBERS ABSENT: None
The meeting was called to order by Mayor Gonzales.
The Deputy Chief City Attorney announced that there
were no changes to the agenda.
The Deputy Chief City Attorney announced that this was
time for public comments.
The Consent Calendar was presented.
TREASURER
APPROVAL OF WARRANT REGISTERS -
October 20 through October 26, 2009:
1. There were no Wire Transfers for Warrant Register No.
1289.
2. Ratification of the issuance of early checks for Warrant
Register No. 1289, totaling $6,110.82.
3. Warrant Register No. 1289, totaling $369,217.07.
4. Ratification of wire transfers for Light & Power Warrant
Register No. 254, totaling $3,500,884.87.
5. Ratification of the issuance of early checks for Light &
Power Warrant Register No. 254, totaling $6,211.96.
6. Light & Power Warrant Register No. 254, totaling
$20,299.76.
7. There were no Wire Transfers for Gas Warrant Register
No. 44.
8. Ratification of the issuance of early checks for Gas
Warrant Register No. 44, totaling $12,328.08.
9. Gas Warrant Register No. 44, totaling $19,609.78.
10. There was no BNY Report for this period.
END OF CONSENT CALENDAR
It was moved by McCormick, seconded by Davis, that the
items listed on the Consent Calendar be approved as recommended.
Motion carried. 5-0
Regular City Council Meeting Minutes
November 2, 2009
The Chief Deputy City Attorney announced that this was
the time to address the discussion items listed on the agenda.
STAFF DISCUSSIONS
A. Discussion with City Administrator regarding Study
Session Agenda Format.
The City Administrator advised that the main reason
for the Informational Session was to be able to discuss items of
importance with the City Council in a manner that complies with
the restrictions posed by the Brown Act.
These information sessions would also improve the communication
process between the City Council and staff. He further advised
that these meetings were not established to seek Council's
direction unless otherwise specified on the Department's Staff
Discussion Report.
He clarified that Council could give direction to city staff to
place items on a future meeting; or direct staff to do
searches/investigations and report back.
Mayor Gonzales expressed his happiness with the new
format of the Council meetings and commended the City
Administrator's intent to keep the City Council well informed on
city business.
The Mayor asked if there were any questions from the
City Council on this matter at this time.
Councilman Newmire asked if discussion among the
councilmembers on any topic listed on the agenda would be
appropriate at these meetings.
The City Attorney encouraged communication among the
councilmembers on any topic as long as the topic was listed on
the agenda.
B. Discussion with the Director/Health Officer of
Environmental Health and Control Department regarding the E-
Waste Collection Event.
The Director/Health Officer of the Health and
Environmental Control Department informed the City Council of
the reduction in the volume of items collected during the E-
Waste Event held October 14, 2009.
He informed that there were approximately 15,000 pounds of
electronic waste collected as opposed to approximately 30,.000
pounds in the past. He also mentioned that said reduction might
have been attributed to the rain on that day or the reduction
might be attributed to the weak economy.
Councilman Newmire asked for those who missed this E-
Waste collection day, when would the next collection take place.
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Regular City Council Meeting Minutes
November 2, 2009
The Director/Health officer advised that he would get
the information of other nearby E-Waste collection sites and
make it available.
C. Discussion with Special Counsel and City Administrator
regarding various financial topics.
Special Counsel provided an overview of the financial
position of the city for the last forty years. He focused on
the fundamentals of revenues vs. expenditures.
detail:
Special Counsel also addressed the following in
■ The acquisition of 29,000 acres of land for the
purpose of the construction of a Wind Energy
Project and the great interest expressed by other
agencies on this project.
■ The importance of maintaining competitive energy
rates in the city and to focus on other projects
to increase revenue and not to increase energy
rates.
■ The fundamentals of Revenues vs. Expenditures and
reiterated that expenditures should not be
greater than revenues.
The City Administrator explained the fundamentals
behind the increase in energy costs and the importance of
maintaining a steady energy capacity.
Mayor Gonzales expressed his concern with the past
opposition by environmentalists to the proposed construction of
the City's power plant, Southeast Regional Energy Project and
the impact that may have on the City's finances.
Special Counsel explained that environmentalists and
local communities focused in the past on the proposed
construction of the city's power plant, which they could
control; but that environmentalists and local communities do not
focus on the main pollution problem that comes from mobile
sources, like cars and such. They do not pursue the pollution
problem coming from mobile sources because that problem cannot
be controlled.
Councilman Newmire asked if the city were to go
forward with the wind project, how long it would take for the
city to begin collecting revenue.
Special Counsel said that there were two ways that the
city could collect revenue:
1. By partnering in the development of the energy
resources. This would yield a relatively quick
return that could begin in approximately 3 to 5
months; or,
2. By waiting until the wind project is up and
running and collecting revenue from the sale of
wind energy: This would take several years. The
earliest could be 2012.
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November 2, 2009
Councilman Davis asked if the city had received funds
to replace water or power meters like others cities have.
The City Administrator responded that he would have a
report prepared on this matter and bring it forth to a future
meeting.
Councilman Newmire asked if staff is looking into the
various options available in renewable and/or bio energy.
The City Administrator advised that the city is
looking into every potential way to generate energy from
renewable sources, solar, wind, solid waste, and algae farms.
following:
The Special Counsel proceeded and addressed the
■ The interest swaps and their continued cost to
the city, the continual monitoring of these swaps
and the possibility of the City Administrator
recommending to city council in the first quarter
of 2010 to get out of/terminate the interest
swaps.
■ The Society General commodity swaps for the
supply of prepaid natural gas and the Director of
Light and Power's efforts to terminate these
before they go to a possible negative value.
Mayor Gonzales asked if there were any questions from
the City Council on the topics presented by the Special Counsel
at this time.
There were no questions at this time.
The City Administrator proceeded and reported on the
outages that occurred last week due to the strong winds. He
also stated that he would have a report prepared on this matter
to bring forth to a future meeting.
The City Administrator further reported on the
incident that occurred last Sunday at the Malburg Generating
Station (MGS) involving two suspects at the Soto Gate of the
facility. He stated that he would have a report prepared on
this matter to bring forth to a future meeting.
Mr. John Farhamy, property owner, asked for the City
Council to allow additional public comment. The Council agreed
to his request. Mr. Farhamy addressed the City Council on a
matter regarding the change; of use of his property located on
the corner of Fruitland and Pacific. Mr. Farhamy stated that
his property has been vacant for over four months and that he
has found a potential tenant who is present in the audience and
who would also like to address the City Council at this time.
Mr. Mario Garcia addressed the City Council, advised
the Council of the different types of business activities that
he has been involved with for the last seven years, and
communicated his interest to open a business in the property in
question.
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Regular City Council Meeting Minutes
November 2, 2009
Mr. Garcia further explained that the parking lot for the
property is located in the City of Huntington Park and the
building portion is located in the City of Vernon.
The City Attorney advised that since this matter was
not on the agenda, the Director of Community Services & Water
could provide a brief response on this matter and that an agenda
item could be placed on a future agenda to address this matter
in detail.
The Director of Community Services & Water briefly
addressed the City Council, advised that the property is located
in an industrial zone not commercial, and that changing the use
of the facility would require an Amendment to the Zoning
Ordinance.
Mayor Gonzales asked the Director of Community
Services & Water if there had been a similar request in the past
from the property owner to change the use of the property to
accommodate for a church.
Mr. Farhamy addressed the City Council and
acknowledged that he had made that request.
The Director of Community Services & Water advised
that he would prepare a report on this matter to bring forth to,,
a future meeting.
FUTURE AGENDA REPORTS
Mayor Pro Tem asked that a discussion report be placed
on the next Council Agenda to address the construction of Fire
Station No. 4. He further asked that Special Counsel Fresch be
present to address the financial obstacles on this matter.
Councilman Maisano asked that a discussion report be
placed on the next Council Agenda to address the five-year term
period on solid waste franchises and other contracts with
evergreen clauses.
Councilman Newmire expressed a desire to discuss
contracts with evergreen clauses at a future meeting.
There being no further business to come before the
City Council at this time, it was moved by McCormick, seconded
by Maisano, that the meeting be adjourned, the time being 10:35
a.m. Motion carried. 5-0
ATT T:
;�
Ma uela Giron, dity Clerk
Hilario Gonzales, Mayor
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