20100616 Regular City Council Meeting - MinutesMINUTES OF THE SPECIAL CITY COUNCILIIIMEETING
OF THE CITY OF VERNON HELD WEDNESDAY, JUNE 16, 2010,
IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED
AT 4305 SANTA FE AVENUE, VERNON, CALIIFORNIA
MEMBERS PRESENT: Gonzales, McCormick, Davis'„ Maisano, Newmire
MEMBERS ABSENT: None
The meeting was called to order at 3:08 p.m. by Mayor Gonzales.
The City Clerk advised that there were no 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.
John Kelly, Vice President of Public Affair's for TNT Fireworks
(TNT), advised that during the 21 years he has been with the
company, TNT has been the wholesale provider of fireworks to
the Vernon Police Officers Benefit Association (VPOBA) for its
4th of July fireworks sale. He received a call from the VPOBA
earlier in the day advising of a concern that the 2010
fireworks sale may not be permitted. TNT had secured all the
required State permits and fireworks products on behalf of the
VPOBA, and was seeking a short-term solution for the 2010
sale, as well as background information anddirectionwith
regard to a long-term solution for future sales.
The Mayor asked the City Attorney to explain the matter.
City Attorney Larry Wiener advised that, pursuant to an
ordinance adopted in 1951, the sale of fireworks in the City
of Vernon is prohibited. He was aware thatlthere had been a
past practice of issuing a variance from the ordinance to
allow the VPOBA to sell fireworks for the 4th of July, but
explained that the ordinance does not provide for such a
variance. He advised that the ordinance coluld be amended to
provide an exception allowing for the sale Iof fireworks in
this type of instance, but explained that there was not
sufficient time to accomplish such an amendment for this
year's sale, as the amended ordinance wouldlrequire two
readings and then would not take effect until 30 days after
the second reading. Wiener stated that he had also spoken to
the Fire Chief and Fire Marshal about the past practice to see
if there were any additional documents or provisions that
would allow for the sale of fireworks, but (nothing was found.
The Mayor stated that none of the previous City Attorneys had
advised the City Council of the 1951 ordinance.
Wiener stated that it is an uncodified ordinance, but
clarified that it is still in effect and that there is no
provision in the ordinance or State law to ,allow the granting
of the variance in question.
City Administrator Donal O'Callaghan added that, shortly
before the meeting, he submitted a memo to the Councilmembers
outlining the chain of events on this matter and explaining
the City Attorney's findings.
Special City Council Meeting Minutes
June 16, 2010
Wiener advised that the memo did not contain much more than he
had just explained orally.
Tino Chavez, Treasurer of the VPOBA, explained that the
fireworks sale is usually the biggest and only source of
revenue for the VPOBA, which enables it to Make donations to
charities, such as the American Cancer Society, and to local
needs, like the Vernon Elementary School playground, local
youth groups, and Southeast area activity programs. Some of
the revenue from previous fireworks sales was donated to the
family of the first Vernon Police Officer killed in the line
of duty, enabling three of the family members to attend a
special recognition ceremony in Sacramento.! Chavez stated
that any consideration the Council, City Administrator, and
City Attorney could give the situation would be greatly
appreciated.
The Mayor stated that, regardless of past practice, based on
the City Attorney's findings, there is nothing the City
Council can do to allow the sale of fireworks this year.
Wiener expressed his sympathy to the VPOBA's plight, and
pointed out that there are no laws prohibiting the VPOBA
itself from selling fireworks. Thus, it may be possible for
the VPOBA to acquire a stand or location outside of Vernon's
boundaries for this year's sales.
Mayor Pro Tem McCormick asked the City Attorney to bring forth
an amended ordinance.
Wiener responded that, if the Council concurred, he would work
with the Fire Chief in drafting the amendedlordinance to make
sure the exception is appropriately narrow and doesn't create
any concerns about fire safety, as well as the VPOBA to ensure
that their future needs are accommodated. He anticipated
bringing the ordinance forward next month.
The City Council concurred with the proposed process for
drafting the new ordinance.
The Mayor asked if there was anyone else in the audience who
wished to address the City Council. No one responded.
DISCUSSIONS
1. Review of the proposed budget for the City of Vernon for
fiscal year 2010-2011.
City Administrator Donal O'Callaghan gave an overall report
on the proposed 2010-2011 budget. He stated that the
proposed budget reflects the City's commitment to sound
fiscal management that will enable the City to continue as
an economic engine in the region, supporting 1,800
businesses that employ 50,000 people from local
communities. He expressed his confidence!in the City's
ability to maintain the high level of service constituents
and local businesses have been accustomedlto, despite
current budget constraints. He acknowledged the hard work
of City staff in bringing General Fund expenditures in line
with decreased revenues, an important step toward a General
Fund that will be self-sustaining over the next few years.
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Special City Council Meeting Minutes
June 16, 2010
O'Callaghan advised that the proposed 2010-2011 General
Fund expenditure budget of $39.7 million,jconsists of the
following:
■ $9 million in general government servvices;
■ $13.3 million in fire protection services;
■ $9 million in police protection services;
■ $7 million in community services; and
■ $1.4 million in health services.
The proposed General Fund budget represents a $10 million
(roughly 20%) reduction from the prior fiscal year, and
consists of the following reductions:
■ $5 million in staff reductions;
■ $3 million in group insurance changes; and
■ $2 million in retirement program changes.
Working with each department, a line by line approach was
utilized to achieve the reductions ratherithan a single,
across the board cut. Importantly, the proposed budget
reduces the General Fund's reliance on transfers by more
than 5001.
Expenses in the proposed budget were further reduced
through the termination of the majority of the City's
interest rate swaps on its bonds.
O'Callaghan summarized and compared the main budget numbers
as follows:
■ Revenue Highlights (excluding transfers in):
g
■ FY 2010 Budget $256 million
■ FY 2010 Annualized $223 million (870-. of budget)
■ FY 2011 Proposed $250 million
(assumes $6;million
reimbursement transfer)
■ Enterprise Funds: $212 million
(up $23 million or 12%)
■ Government Funds: $32 million'
(down $1.7 million or 40-.)
■ Expenditure Highlights (excluding transfers out):
■ FY 2010 Budget $272 million
■ FY 2010 Annualized $233 millioln (86% of budget)
■ FY 2011 Proposed $250 million
(up $17 million or 7%)
■ Enterprise Funds: $207 million
(up $27 million or 15%)
■ Government Funds: $44 million
(down $10 million or 190-o)
O'Callaghan advised that Financial Management Consultant
Jim Moriarty, Finance Director Rory Burnett, Assistant
Finance Director Masami Higa, Department Heads, and various
staff members were all in attendance to answer any
questions the Council had.
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Special City Council Meeting Minutes
June 16, 2010
O'Callaghan and Moriarty elaborated on o
the proposed budget: group insurance an
were assigned to their respective depart
blanketed under the Risk Management budg
previously been the case. This was done
expenditures and ensure a proper cost co
system.
major change to
retirement costs
ants rather than
as had
:o properly assign
:rol management
O'Callaghan advised that Police Department reductions were
currently under negotiation with the Vernon Police Officers
Benefit Association and may require tweaking or movement
between this meeting and June 24, 2010, the proposed budget
adoption date.
O'Callaghan deferred to the Council Me
how to proceed with the budget review.
The Mayor recommended a department by de
whereby each department would be announc
presented, allowing Council Members and
attendance to raise questions or comment
the respective department, and staff to
additional comments.
The following questions/comments were r
review.
s with regard to
.rtment approach,
. in the order
.yone in
on the budget for
spond or make
ed during the
1. Capital Expenditures: The Mayor noted that capital
expenditures did not appear in the proposed budget as
they had in prior budgets.
O'Callaghan confirmed that was the case, indicating
those are items that require City Council approval,
and advised that a list of potential capital projects
will be presented to the Council in the next couple
weeks.
2. Revenues: Councilman McCormick asked O'Callaghan if
he and the Finance team had looked at fees that have
not been updated in recent years, as well as the Fire
Department and its ambulance service calls.
O'Callaghan responded that he and tr
looking at current and prospective f
City services. A matrix was being X
prior fees not currently being chart
other cities' fees, fee increases ti
years, etc. Fire Chief Mark Whitwoi
approximately 23 services the City c
at no charge that other cities chart
training programs that do not direct
businesses. O'Callaghan stated he v
Council with an information packet c
changes to the City's fee structure,
any changes occur in stages to lesse
impact.
departments were
es for various
epared to show
d by the City,
oughout the
h had pointed out
rrently provides
for, including
y impact the
uld provide the
the potential
but recommended
the overall
3. Business Services & Purchasing: McCormick asked for
clarification of the Director's salalrv.
Director of Business Services & Purchasing/Director of
Personnel Martha Valenzuela advised that her salary
was split 50/50 between her two positions.
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Special City Council Meeting Minutes
June 16, 2010
4. Personnel: Councilman Davis asked if bilingual pay
was still included. Valenzuela confirmed that it was.
Moriarty pointed out that the $700,000 reduction in
salaries was due to the reassignment of sick -time and
vacation payouts to the respective departments, rather
than blanketing them in Personnel.
The Mayor asked for an explanation of the $1,500 for
psychological evaluations.
Valenzuela and Police Chief Steve Towles advised that
psychological evaluations are for new hires or in-
service employees following an incident necessitating
such an evaluation.
5. Redevelopment Agency: The Mayor asked about the $2-$3
million payment to the State.
Burnett advised that $3 million had been paid in the
current fiscal year and only $700,000 would be due
during the 2010-2011 fiscal year.
The Mayor asked about the property tax on the Austin
Trucking property-.
Whitworth advised that the property is connected to
Fire Station No. 4 and owned by the !,City.
City Attorney Wiener and Burnett believed that the
City agreed in the lease to pay the possessory
interest tax.
6. Industrial Development: Burnett pointed out that
there would be no personnel ex_ in this
department after December 2010.
O'Callaghan pointed out that the department had been
moved from the Light & Power Fund to l the General Fund.
7. City Attorney: McCormick asked who held the Assistant
City Attorney III position.
Chief Deputy City Attorney Willard Yamaguchi advised
that the position was held by Avigal Horrow, who had
approximately a year -and -a -half remaining on her
contract.
O'Callaghan stated that Wiener would look into the
current workload and production of that position and
whether there are any opportunities for relieving the
City of that responsibility going forward.
8. Police and Fire Dispatch: McCormick asked about
Emergency Medical Dispatch (EMD) training.
Wiener advised that EMD training do not appear to be
mandated or part of pending legislatlion, but he
concurred with O'Callaghan and Whitworth that the City
should look toward that direction going forward.
Davis asked how many dispatchers a
staffed.
currently
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Special City Council Meeting Minutes
June 16, 2010
Towles stated there are eight dispatchers, including
the 'dispatch supervisor, after the reduction of one
full, -time and one part-time position.
9. Police: O'Callaghan reminded the Council that this
department's figures may change as a result of ongoing
negotiations.
10. Street Lighting: McCormick asked if converting to LED
lighting had been looked into.
O'Callaghan advised that it had not,
now that it had been requested.
11. City Buildings: The Mayor stated
were included that had not been in
O'Callaghan advised that the costs
in previous years, but the detail
but would do so
iy transactions
.ior years.
id been included
i not been.
12. Fiber Optics: The Mayor asked if the conversion from
residential to commercial internet use for Malburg was
included.
O'Callaghan advised that it was, but that staff was
still working through the accuracy of some of the
costs for various connections, which would be further
explained prior to the final budget approval.
13. Water: The Mayor asked if the Central Basin rate
increases were forecasted.
Moriarty advised that Director of Community Services &
Water Kevin Wilson, who was not in attendance, had
previously confirmed that no rate increases were
included in the forecast.
The layor and McCormick asked how the City will deal
with increased water costs.
Public Works & Water Superintendent Scott Rigg advised
that) based on water sale projections and a
renegotiated contract with Central Basin in which the
City's costs for water service were reduced, the need
for a rate increase was not anticipated.
14. Recycled Water: The Mayor stated that cities are
opposing proposed rate increases.
Rigg advised that it is cheaper to pump ground water
than to purchase recycled water.
15. Parcel Tax: McCormick asked if these rates will
increase.
O'Callaghan advised that he was working with Wilson on
this and that a discussion item resplecting possible
adjustments was slated for the June I21, 2010 Council
meeting.
16. Gas Utility: The Mayor asked about
connections.
status of gas
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Special City Council Meeting Minutes
June 16, 2010
O'Callaghan advised that the City currently has over
40 customers and is progressing well, expecting five
to six new customers soon.
McCormick asked if it is in the black. O'Callaghan
replied that it is and that it is used to support
other areas.
Davis asked how many of the 40 custo,mers are heavy
users and if Farmer John is one.
O'Callaghan replied that five or six are heavy users,
but Farmer John is not a customer, as the company was
able to use the City's prices to renegotiate an even
lower rate with So Cal Gas, which hej viewed as a
positive thing overall.
17. Haz Mat - Fire and Health: McCormick asked if Haz Mat
fees have been reviewed to ensure they are up to date
and when they were last increased.
Chief Deputy Director of Health Leonhard Grossberg
advised that the fees are up to datel, but would have
to check with Director of Health Lew Pozzebon, who was
not in attendance, as to when the fetes were last
increased.
O'Callaghan advised this was part of' a larger fee
assessment project.
18. Energy Management: The Mayor asked about program
incentives for the business communitw:
O'Callaghan confirmed that the Cityloffers incentives
for efficiency upgrades in accordance with SB 1 and AB
1890.
The potential impacts of AB 32 regarding the reduction
of greenhouse gas emissions were also discussed.
The Mayor announced that today's review would conclude here
and pick up with Field Operations at the next meeting.
At 5:06 p.m., it was moved by McCormick and seconded by Newmire,
that the meeting be adjourned. Motion carried,.
ATTE
City Clerk
Hilario Gonzal
Mayor
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