20120103 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL -
LIGHT & POWER MEETING OF THE CITY OF VERNON
HELD JANUARY 3, 2012, IN THE COUNCIL
CHAMBERS OF THE CITY HALL LOCATED AT
4305 SANTA FE AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: Davis, McCormick, Maisano, Newmire
MEMBERS ABSENT: None
The meeting was called to order at 8:03 a.m. by Mayor Pro-Tem
Davis.
The City Clerk announced that the agenda needed to be amended to
add the Second Amended and Restated Metered Subsystem Agreement
between the City of Vernon and the California Independent System
Operator as this matter had been brought to the City Clerk's
attention after posting of the agenda.
Director of Light & Power Carlos Fandino requested that the item
be added to the agenda for consideration, with a resolution
forthcoming on the next City Council meeting.
It was moved by McCormick and seconded by Maisano to add the
item to the agenda under new business.
The City Clerk announced that this was the time allotted for
public comment. The Mayor Pro-Tem inquired whether anyone in
the audience wished to address the City Council. No one
responded.
MINUTES
It was moved by Maisano and seconded by Newmire to approve the
Minutes of the Regular City Council - Light & Power Meeting held
November 15, 2011. Motion carried, 4-0.
It was moved by McCormick and seconded by Maisano to approve the
Minutes of the Regular City Council - Light & Power Meeting held
December 6, 2011. Motion carried, 4-0.
It was moved by McCormick and seconded by Davis to approve the
Minutes of the Regular City Council - Light & Power Meeting held
_. December 20, 2011. With Maisano and Newmire abstaining, the
minutes are to be filed and recorded.
It was moved by McCormick and seconded by Davis to approve the
Minutes of the Special City Council - Light & Power Meeting held
December 22, 2011. With Maisano and Newmire abstaining, the
minutes are to be filed and recorded.
PUBLIC HEARINGS
At 8:10 a.m., it was moved by McCormick and seconded by Maisano
to open the public hearing to consider the establishment of the
Vernon Renewable Resource Procurement Plan and Enforcement
Program.
Abraham Alemu, Electric Resources Planning & Development
Manager, advised that the Department is seeking approval for the
Regular City Council -
Light & Power Department Minutes
January 3, 2012
Vernon Renewable Resource Procurement Plan and Enforcement
Program. Alemu presented a summary on SBxl_2 which mandates.
that all utilities have 331 renewable portfolio standards
("RPS") by 2020 and established interim target periods. It also
requires utilities to develop a procurement plan and enforcement
program by January 1, 2012.
Alemu explained the proposed procurement goals in order to meet
the criteria outlined by SBx1_2 as follows:
20% by 2013
— . 25% by 2016
33% by 2020
Alemu explained that the procurement program is only the first
component, and that the second is the enforcement program. He
referenced the staff report and related documents in order to
highlight some of the provisions and the importance of
recognizing these conditions since the City Council will be
responsible for enforcing the SBxl_2 compliance plan.
The Director of Light & Power is responsible for developing and
executing the SBxl_2 compliance plan and inform the City Council
at a public meeting if Vernon will not be able to meet
procurement requirements, and develop a plan to be in
compliance. Beginning in 2013 the Director is also required to
provide the City Council with an annual informational update.
The City is required to provide CEC documentation and reports as
required.
Alemu concluded by stating that the Department recommends that
the City Council approve the SBxl_2 compliance plan.
Director of Light & Power Carlos Fandino reported that the
California Energy Commission is recommending that the out-of-
state bio-methane fuel be classified under a different lesser
bucket requirement which will have a significant impact to the
City.
There were no comments from the audience
At 8:35 a.m., it was moved by McCormick and seconded by Maisano,
to close the public hearing. Motion carried, 4-0.
Fandino reported that customers have been made aware of the
compliance requirements through several Electric Rate Committee
meetings. He reported that the City has decided not to pass on
the cost of the RPS to the customers for the 2012 calendar year.
Fandino reported on his intension to visit Sacramento in regards
to the bio-methane fuel issue and its classification under the
bucket requirements, addressing Councilman Maisano's inquiry
over the potential purchase of the fuel.
Mayor Pro Tem Davis inquired whether there were any additional
questions or comments. No one responded.
Page 2 of 5
Regular City Council -
Light & Power Department Minutes
January 3, 2012
Resolution No. 2012-02 - A Resolution of the City Council of the
City of Vernon Approving and Adopting a Renewable Resources
Procurement Plan and Enforcement Program
It was moved by McCormick and seconded by Maisano, that
Resolution No. 2012-02 be approved. Motion carried, 4-0.
CONSENT CALENDAR:
It was moved by Newmire and seconded by McCormick, that the
matters on the Consent Calendar be approved as recommended.
Motion carried, 4-0.
1.Approval of Light & Power Warrant Register No. 313,
totaling $5,224,167.43, which covers the period of November
29 through December 26, 2011, and consists of the
following:
a. Ratification of wire transfers totaling $4,926,444.37;
and
b.Ratification of the issuance of early checks totaling
$82,557.09; and
c.Authorization to issue pending checks totaling
$215,165.97.
2. Approval of Gas Warrant Register No. 101, totaling
$113,134.62, which covers the period of November 29 through
December 26, 2011, and consists of the following:
a.Ratification of wire transfers totaling $102,207.55;
and
b. Ratification of the issuance of early checks totaling
$9,633.42; and
c. Authorization to issue pending checks totaling
$1,293.65.
3. October 2011 Resource Procurement Report, to be received
and filed.
NEW BUSINESS
1. Resolution No. 2012-03 - A Resolution of the City Council
of the City of Vernon Modifying Resolution No. 2011-203
It was moved by McCormick and seconded by Newmire, that
Resolution No. 2012-03 be approved. Motion carried, 4-0.
2. Second Amended & Restated Metered Subsystem Agreement
between the City of Vernon and the California Independent
System Operator ("CAISO").
Pandino advised that the item was added to the agenda, as it
relates to a mutual agreement between the City and CAISO, the
amendment to the Metered Subsystem Agreement ("MSSA"), which
the City was required to approve by January 1, 2012.
It was moved by Maisano and seconded by Newmire to approve the
Second Amended & Restated Metered Subsystem Agreement between
the City and CAISO. Motion carried, 4-0.
Page 3 of 5
Regular City Council -
Light & Power Department Minutes
January 3, 2012
�7;a21f i�lZ•7;kK`.
Director of Light & Power Carlos Fandino reported on damage to a
traffic signal light which occurred on December 30, 2011, and on
a power outage on January 2, 2012, due to a car hitting a pole
incident on Bandini Boulevard.
Fandino reported on his meeting in Arizona in regards to the
procurement of solar energy, and advised that solar energy is
coming down in price.
Fandino reported that the Tehachapi project was presented to the
Southern California Public Power Authority ("SCPPA") in January
and that the department will be talking to LADWP through SCPPA
in regards to transmission lines for the Tehachapi project.
CLOSED SESSION
At 9:53 a.m., it was moved by McCormick and seconded by Maisano,
that the City Council go into closed session to discuss the
items listed on the closed session agenda. Motion carried, 4-0.
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(a)
Attorneys General of the States and Commonwealths of
Alabama, California, et al., and Bank of America,
Claim No. 1000099
2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Potential initiation of litigation.
Government Code Section 54957.1(a)(2)
Number of potential cases: 1
At 9:09 a.m, it was moved by McCormick and seconded by Newmire,
that the City Council exit closed session. Motion carried, 4-0.
The Deputy Chief City Attorney reported that the City Council
had unanimously agreed to settle a class action law suit with
Bank of America. Closing documents will be available for public
viewing once they have been executed by all parties.
He also reported that the City Council unanimously agreed to
initiate an action. After the action is formally commenced, the
defendants shall be disclosed unless to do so would jeopardize
the City's ability to conclude existing settlement negotiations
to its advantage.
The City Clerk announced that there were no further items on the
agenda.
Page 4 of 5
Regular City Council -
Light & Power Department Minutes
January 3, 2012
At 9:12 a.m., it was moved by Maisano and seconded by McCormick,
to adjourn the meeting. Motion carried.
William J. Da4js
Mayor Pro-Tem
Page 5 of 5