20100614 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING
OF THE CITY OF VERNON HELD MONDAY, JUNE 14, 2010,
IN THE COUNCIL CHAMBER 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 at 9:04 a.m. by Mayor Gonzales.
The City Clerk announced that Ordinance No. 1172, listed on the
agenda, was being presented for a first reading, which the
agenda neglected to state. He advised that there were no other
changes to the agenda.
The City Clerk announced that this was the time allotted for
public comments.
The Mayor asked if there was anyone in the audience who wished
to address the City Council. No one responded.
CONSENT CALENDAR
Community Services & Water Department
1. Building Department Report for the month of May 2010, to be
received and filed.
Treasurer's Department
1. Ratification of the following warrant registers to record
the following voided checks:
a. City Warrant Register No. 1311 for voided check no.
329777 in the amount of $510.00, issued May 3, 2010.
2. Approval of the following Warrant Registers covering the
period of May 28 through June 7, 2010.
a. City Warrant Register No. 1316, totaling $336,568.11,
which consists of the following:
• Ratification of wire transfers totaling
$293,897.91;
■ Ratification of the issuance of early checks
totaling $6,431.38; and
■ Authorization to issue pending checks totaling
$36,238.82.
b. Light & Power Warrant Register No. 281, totaling
$1,346,334.21, which consists of the following:
■ Ratification of wire transfers totaling
$1,285,316.88;
■ Ratification of the issuance of early checks
totaling $19,346.79; and
■ Authorization to issue pending checks totaling
$41,670.54.
c. Gas Warrant Register No. 69, totaling'$38,170.12,
which consists of the following:
■ Ratification of the issuance of early checks
totaling $13,908.88; and
Regular City Council Meeting Minutes
June 14, 2010
■ Authorization to issue pending checks totaling
$24,261.24.
d. Federal Funds for Street Improvements Warrant Register
No. 1, totaling $164,070.77, which consists of the
following:
■ Ratification of wire transfers totaling
$164,070.77.
It was moved by Maisano and seconded by Davis, that the matters
on the Consent Calendar be approved as recommended. Motion
carried, 5-0.
ORDINANCES
1. ORDINANCE NO. 1169 - An Ordinance of the City Council of
the City of Vernon Abolishing the Police and Fire
Commission. (Second and Final Reading)
It was moved by Newmire and seconded by Maisano, that
Ordinance No. 1169 be approved and adopted. Motion
carried, 5-0.
a. Request to cancel all Police and Fire Commission
meetings during the period beginning June 28 through
July 15, 2010.
It was moved by Maisano and seconded by Davis, to
cancel the Police and Fire Commission meetings during
the period beginning June 28 through July 15, 2010.
Motion carried, 5-0.
2. ORDINANCE NO. 1170 - An Ordinance of the City Council of
the City of Vernon Repealing Section 7.3 of the Vernon City
Code Authorizing the Delegation of Enforcement
Responsibilities for Certain Provisions of the Fire Code
and Other Fire Safety Regulations. (Second and Final
Reading)
It was moved by Maisano and seconded by Davis, that
Ordinance No. 1170 be approved and adopted. Motion
carried, 5-0.
3. ORDINANCE NO. 1171 - An Ordinance of the City of Vernon
Amending the Vernon City Code by Adding Section 13.88,to
Establish Fees and Charges Pursuant to the Aboveground
Petroleum Storage Act. (Second and Final Reading)
It was moved by Davis and seconded by Maisano, that
Ordinance No. 1171 be approved and adopted. Motion
carried, 5-0.
4. ORDINANCE NO. 1172 - An Ordinance of the City Council of
the City of Vernon Amending Sections 2.34, 2.35, 2.36, 2.37
and 2.39 of the Vernon City Code Relating to the Vernon
Public Library. (First Reading)
It was moved by Maisano and seconded by Davis, that
Ordinance No. 1172 be approved for a first reading. Motion
carried, 5-0.
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Regular City Council Meeting Minutes
June 14, 2010
RESOLUTIONS
1. RESOLUTION NO. 2010-73 - A Resolution of the City Council
of the City of Vernon Approving and Authorizing the
Execution of an Orangeline Development Authority Second
Amended Joint Exercise of Powers Agreement.
It was moved by Maisano and seconded by McCormick, that
Resolution No. 2010-73 be approved and adopted, 5-0.
2. RESOLUTION NO. 2010-74 - A Resolution of the City Council
of the City of Vernon Approving and Authorizing the
Execution of an Office Lease Agreement by and between the
City of Vernon and the Law Offices of Eric T. Fresch, LTD
for a Portion of City Property Located at 2724 Leonis
Boulevard in Vernon, California.
It was moved by Newmire and seconded by Davis, that
Resolution No. 2010-74 be approved and adopted. Motion
carried, 5-0.
DISCUSSIONS
1. City Administration: As requested by Councilman Maisano at
the June 7, 2010 City Council meeting, consider having the
Fire Chief report directly to the City Council.
City Attorney Larry Wiener stated that, although he was not
at the June 7th meeting to participate in the discussion, he
talked to Councilman Maisano during the week, and
understood the request to be that material being provided
to City Administration by the Fire Chief be submitted
directly to the City Council as it is received by City
Administration.
Councilman Maisano stated that he wanted to explore the
logistical changes required to have the Fire Chief report
directly to the City Council.
Wiener stated that the City Code provides that the Fire
Chief reports to the City Administrator and the City
Charter provides that the City Administrator manages all
the affairs of the City. To have the Fire Chief himself
report directly to the City Council, as opposed to the
direct transmittal of documents and reports, would require
an amendment to the Code or Charter to change the
management or administration structure accordingly.
Councilman Newmire asked what would be required to have the
Fire Chief report directly to both the City Council and
City Administrator.
Wiener advised that a code amendment would be required at
minimum. He stated that the logistics of a dual reporting
structure would probably be difficult for all parties
involved. He stated that the City Council has always
reserved the authority to employ and dismiss department
heads, and that the City Administrator's role, as he
understood it, was to coordinate all departments and, with
regard to matters that are brought before the Council,
present such matters in a manner reflective of the
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Regular City Council Meeting Minutes
June 14, 2010
different departments' perspectives and City Administration
overall.
The Mayor asked Maisano to clarify his request,
particularly, whether he was proposing that the Code be
amended to provide that the Fire Chief report directly to
the City Council.
Wiener advised that an ordinance amending the Code to have
the Fire Chief report directly to the Council would be
difficult to draft, as it is atypical to have the executive
authority resting in more than one individual,
particularly, a body of five that has to meet in accordance
with certain legal provisions that make it impossible for
said body to make immediate decisions and take immediate
actions. Wiener stated that two department heads currently
report directly to the Council, one of which is the City
Attorney, which is fairly common, and the other is the
Finance Director, which may not have been consistent with
the spirit of the Charter, but may have understandably been
a reaction to what was going on at the time the change was
implemented in late 2006/early 2007.
Mayor Pro Tem McCormick asked if the Code could be amended
to create a position of Director of Public Safety, and have
that position report directly to the Council, as the
Director of Finance currently does.
Wiener answered "yes," but stated that the question as to
how the Council foresees the logistics of such a setup
playing out still remains.
Councilman Davis asked why the Fire Chief/Fire Department
was the sole focus, and whether amending the Code to
implement the proposed change would affect all the other
departments.
In order to fully respond to Davis's questions, and ensure
that all the Councilmembers understand the entire matter,
the Mayor recommended that the City Attorney submit a full
written report to the City Council for the next meeting,
detailing the options for effectuating the proposed change,
and the procedural and legal consequences of each option.
Wiener stated that a report would.be submitted.
The Mayor sought concurrence or input from the other
Councilmembers.
Davis concurred with the Mayor's recommendation.
Maisano recommended the City Attorney move forward with
drafting the ordinance to amend the Code as proposed, in
conjunction with the written report recommended by the
Mayor, and eventually explore the possibility of creating a
Director of Public Safety position, as recommended by
McCormick. Newmire and McCormick concurred with Maisano's
recommendation.
Wiener confirmed that the proposed ordinance would be
prepared and presented to the City Council at a future
meeting.
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June 14, 2010
2. City Administration: Proposed budget for the City of
Vernon for the 2010-2011 fiscal year.
City Administrator Donal O'Callaghan announced that a
Special City Council meeting was slated for June 16, 2010,
to begin the formal review of the proposed budget. He
urged the Councilmembers to submit any questions or
concerns they have prior to said meeting, so that staff
would be able address those issues at the meeting. He
invited Legal Services Consultant Eric Fresch the
opportunity to comment on the proposed budget.
Fresch stated that the proposed budget was pretty much
carrying forward the principles established with regard to
the various budget cuts that had been made to the current
budget over the last six months. He described the
preparation of the proposed 2010-2011 budget as a long and
painful process in which cuts to staff and services were a
necessary response to decreased net revenues for the Light
& Power Department, financial market dislocations, and the
increased cost of borrowing. The goal is to ensure that
the City will be able to withstand the current recession
and continue to operate and serve its business customers
for many more years. He talked about various options for
increasing revenues, including one-time capital gains
projects, like the Wind Project, and increasing current
Light & Power and Customer Service fees and rate
structures, while keeping in mind the level of such
increases the businesses would be able to bear and still
remain in business. Fresch explained that a balanced
budget that keeps the City in the black, although just
barely, had been achieved by bringing build-up fund
balances from prior years over to the General Fund, in
conjunction with the cuts made to the expenditure budget.
He stated that the proposed measure on the August ballot,
relating to expanding the uses of the Special Parcel Tax to
include Police and Fire services, would be another step in
the right direction, if passed.
The Mayor asked if the proposed expanded use of the Special
Parcel Tax was due to the funds that were taken from the
Redevelopment Agency.
Fresch stated that it was and pointed out that the
pressures from State government, City departments, and the
business community all had to be factored into balancing
the budget in the face of limited revenue horizons. He
talked about other budget reforms, like unwinding from
almost all of the Industrial Development Program real
estate and financial swaps, and restructuring the Light &
Power bonds and gas pre -pay contract. He stated that
everything possible was being done in terms of Light &
Power asset financing to help the budget and the City's
financial position.
Fresch stated that the City still held an "A" credit rating
on Wall Street, which was pretty solid for the times, and
would give the City the flexibility to look at all the
different revenue -generating options. He commended the
City Council for seizing the budget reform problem head on,
taking the necessary steps to prevent the City from facing
further, more extensive problems, and looking to take a
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Regular City Council Meeting Minutes
June 14, 2010
more measured rather than panicked approach toward raising
revenues.
The Mayor thanked Eric for his contribution to the
discussion.
O'Callaghan reiterated some of the statements Eric made
with regard to being very proactive in managing, and
possibly restructuring, Light & Power debt service.
O'Callaghan stated that the main issue affecting the City's
budget is the lack of revenue in the General Fund, as that
revenue never did cover its expenditures. He acknowledged
the difficulties the prior and proposed budget cuts posed
for employees and other affected parties, but stated that
the primary objective must always be the long-term survival
of the City.
Mayor Pro Tem McCormick asked what time the Special City
Council meeting would take place on June 16th
The Mayor advised that he would need to check his
availability for that day.
O'Callaghan stated that the meeting time would be
established once the Mayor determined his availability, and
each of the Councilmembers would be notified.
ORAL REPORTS
1. Conference/Seminar reports from Elected Officials for the
period of June 7 through June 13, 2010.
The Mayor reported that none of the City Council members
attended conferences or seminars during the period of June
7 through June 13, 2010.
2. City Administrator Reports.
City Administrator Donal O'Callaghan advised that the City
Attorney had one item to report.
City Attorney Larry Wiener advised that, due to certain
time constraints, the ordinance requested by Councilman
Maisano at the June 7th meeting would not be presented until
the July 19th City Council meeting.
Councilman Davis asked O'Callaghan about crews working on a
target pole near the area of Pacific Boulevard and 46th
Street.
O'Callaghan responded that the last report he received
before he entered the meeting, was that a pole fire had
occurred at Boyle Avenue and Leonis Boulevard, which is
what caused the lights in the Council Chamber to flicker
earlier. He stated that he would report further once he
had received a full report on the incident.
O'Callaghan reported that counsel from Latham & Watkins was
working with the Light & Power Department to resolve an
issue with Bicent regarding dispatching them zero when the
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June 14, 2010
City wants to purchase power from the market rather than
the Malburg Generating Station.
O'Callaghan reported that the negotiation process regarding
the recognition of the Vernon Fire Department Association
was underway, and he anticipated bringing the matter
forward as a closed session item for the next City Council
meeting. Bill Dunsmore of Richards Watson Gershon would be
present at that meeting to give an update on the status of
the negotiations.
City Attorney Wiener clarified that the negotiations would
be discussed in closed session, but the recognition process
would be discussed in open session.
The Mayor asked why he had not yet heard of this matter.
Mayor Pro Tem McCormick mentioned that he also had not
heard of the matter.
O'Callaghan responded that he thought it had come up
before, but would check into it and report back.
Wiener mentioned that he thought it had previously been
part of the City Administrator's reports. He advised that
a petition for recognition had been submitted to the
Municipal Employee Relations Representative, and that they
were currently working through the process.
The Mayor expressed his apprehension about having to
recognize a Fire Department Association based on prior
periods when an association was in place. He stated that
the Council would have to look very seriously at this
matter.
McCormick concurred with the Mayor's comments.
Wiener clarified that the matter was not on today's agenda,
but that a written report would be provided prior to the
oral report and discussion at the next meeting, outlining
State law provisions with regard to the recognition
process, and the City's requirements to that end.
O'Callaghan stated that he had been informed by counsel
that the City is legally required to recognize the
association, but Bill Dunsmore would provide an in-depth
report at the next meeting with regard to the negotiations
and the City's obligations.
3. City Council Reports.
Councilman Davis reported on the grand opening of the Waste
Management medical waste facility that took place the
previous week. He was very impressed with the new facility
and stated that it was a night -and -day comparison to when
it was a trash hauling facility. The Mayor, Fire Chief
Mark Whitworth, Director and Community Services Kevin
Wilson, City Administrator Donal O'Callaghan, and Director
of Environmental Health Lew Pozzebon also attended the
event.
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Regular City Council Meeting Minutes
June 14, 2010
The Mayor also reported on the Waste Management event.
They were given a tour of the building, which was
reconstructed from mostly recycled materials, and he
provided an interview to the media that covered the event.
He stated that it was a very nice, very clean facility, and
a very positive thing for the public to see and associate
with the City of Vernon.
Mayor Pro Tem McCormick reported that he was not at the
Waste Management event because he was attending the middle
school graduation of a family member.
Councilmembers Maisano and Newmire had nothing to report at
this time.
City Administrator O'Callaghan added to the Mayor's
comments on the new Waste Management facility, stating that
it lends itself very well to Vernon's push toward
sustainability and renewability, agreeing that it is a very
positive thing for Vernon going forward. He advised the
Mayor that he had received a copy of the media piece on the
event, and would get that to him.
At 9:54 a.m., the Mayor called a short recess.
At 9:59 a.m., all five members of the City Council in attendance
prior to the recess reconvened in open session.
It was moved by McCormick and seconded by Davis, that the City
Council enter into closed session to discuss the items listed on
the closed session agenda. Motion carried, 5-0.
At 10:42 a.m., the City Council resumed open session.
CLOSED SESSION REPORT OUT
The City Attorney reported that the City Council unanimously
voted to approve a separation/retirement agreement, with Steve
Towles in substantially the same form as presented, subject to
modifications approved by the City Attorney.
The City Clerk announced that there were no further items on the
agenda.
At 10:45 a.m., it was moved by McCormick and seconded by Davis,
that the meeting be adjourned. Motion carried.
ATTEST:
Wilgard U" .
City Clerk
Hilario
Mayor
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