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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. Page 2 of 8 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 Page 3 of 8 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. Page 4 of 8 Regular City Council Meeting Minutes 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 Page 5 of 8 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 Page 6 of 8 Regular City Council Meeting Minutes 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. Page 7 of 8 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 Page 8 of 8