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20121016 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, OCTOBER 16, 2012, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Davis, McCormick, Maisano, Ybarra MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor Pro-Tem Davis. Councilmember Ybarra led the flag salute. Chief City Attorney, Willard Yamaguchi announced that there were no changes to the agenda. PUBLIC COMMENT Chief City Attorney, Willard Yamaguchi announced that this was the time allotted for public comment. Mayor Pro-Tem Davis inquired whether anyone in the audience wished to address the City Council. No one responded. PRESENTATIONS 1. Presentation by Erin Kelly of the Muscular Dystrophy Association (MDA) thanking the Vernon firefighters for their fundraising efforts in support of the MDA.' Vernon firefighters raised over $27,000 in 2012. Erin Kelly, Executed director of the Muscular Dystrophy Association ("MDA"), reported that this has been the most successful year in the four years MDA has worked with Vernon firefighters. The funds will be used towards clinic costs, support groups, medical equipment and research. She thanked the staff for all their efforts. Firefighter Corey Hernandez reported on staffs' involvement and participation including counseling at a kid's summer camp and the Fill the Boot campaign. Kelly announced that over the four years over $85,000 have been raised in addition to the volunteer work. CONSENT CALENDAR It was moved by McCormick and seconded by Ybarra, that the matters on the Consent Calendar be approved as recommended. Motion carried, 4-0. 1. Warrant Registers a. Approval of Payroll Warrant Register No. 676 August 12, through September 8, 2012, and consists of the following: 1. Ratification of direct deposits, checks and taxes totaling $1,948,257.68; and 2. Checks and electronic fund transfers (EFTS) through the General bank account totaling $727,640.33.? Regular City Council Meeting Minutes October 16, 2012 b. Approval of City Warrant Register No. 1366, totaling $585,839.44, which covers the period of September 25, through October 8, 2012, and consists of the following: 1. Ratification of wire transfers totaling $113,651.28; and 2. Ratification of the issuance of early checks totaling $206,806.20; and 3. Authorization to issue pending checks totaling $265,381.96. c. Approval of Light & Power Warrant Register No. 331, totaling $2,924,135.34, which covers the period of September 25, through October 8, 2012, and consists of the following: 1.Ratification of wire transfers totaling $2,644,106.43; and 2. Ratification of the issuance of early checks totaling $152,947.54; and 3.Authorization to issue pending checks totaling $127,081.37. d. Approval of Gas Warrant Register No. 119, totaling $1,925,546.44, which covers the period of September 25, through October 8, 2012, and consists of the following: 1. Ratification of wire transfers totaling $1,897,285.58; and 2. Ratification of the issuance of early checks totaling $330.27; and 3. Authorization to issue pending checks totaling $27,930.59. 2. Community Services a. Building Department Report for the month of September 2012, to be received and filed. 3. Fire Department a. Activity Report for the period of September 16, through September 30, 2012, to be received and filed. 4. Health Department a. September 2012 Monthly Report, to be received and filed. 5. Light & Power Department a. June 2012 Resource Procurement Report, to be received and filed. 6. Police Department a. Activity Log and Statistical Summary of Arrest and Activities for the period of September 16, through September 30, 2012, to be received and filed. Page 2 of 10 Regular City Council Meeting Minutes October 16, 2012 RESOLUTIONS 1. City Administration a. Resolution No. 2012-191 - A Resolution of the City Council of the City of Vernon Authorizing the Issuance of a Notice Inviting Sealed Proposals or Bids for the Sale of 500 Acre -Feet of Water Rights in the Central Basin City Administrator, Mark Whitworth reported the proposal is an answer due to the lack of the Utility User Tax that failed to pass voter approval in the September 18, 2012, election. Director of Community Services and Water, Kevin Wilson was asked to review the City's water supply, and it was determined that 500 acre-feet of the City's adjudicated water rights could be sold, and still have sufficient water supply to meet the city's demand. In response to Mayor Pro-Tem Davis, Wilson reported that approximately 60 of the City's water supply will be out for bid. Wilson further reported that the contract with the Central Basin Municipal Water District ("MWD") will be expiring; the City anticipates that it will enter into an additional 5-year contract with them. In response to Councilmember Ybarra's inquiry on future effects of the sale, Wilson advised that the City can lease water rights should it have a need to. In response to Mayor Pro-Tem Davis, Wilson reported that the anticipated bid price per acre-feet is $7,800. Water rights are not for sale very often, Wilson anticipates several bids. In response to both Mayor Pro-Tem Davis' and Councilmember Ybarra's concerns, Wilson explained that the City purchases 1,000 acre-feet of surface water from the MWD; 500 acre-feet of this water will be bid. It was moved by McCormick and seconded by Maisano to approve Resolution No. 2012-191. Motion carried, 4-0. b. Resolution No. 2012-192 - Resolution Authorizing a Correction to the Amendment to Contract between the Board of Administration California Public Employees' Retirement System and the City Council City of Vernon City Administrator, Mark Whitworth advised that the resolution will make necessary corrections to the Ca1PERS agreement. Joung Yim of Libert Cassidy Whitmore clarified that the amendment will retroactively revoke the 2002 resolution which included City attorneys, and correct the 2008 amendment. Yim confirmed for Mayor Pro-Tem Davis that the amendment will have no affect to miscellaneous employees. In response to Steve L'Ecluse of Bandini Truck Terminal, Inc., Yim reported that since the City Attorney position will not be awarded the safety classification there will be a monetary affect. Whitworth further clarified that CalPERS will have to Page 3 of 10 Regular City Council Meeting Minutes October 16, 2012 recalculate the fees, which might mean money back to the City, and further reduce future costs. In response to Independent Reform Monitor, John Van De Kamp, Whitworth reported that miscellaneous employee pay 8% while safety personnel pay 90. The additional 1% paid for the City Attorney under the safety classification would be returned. It was moved by McCormick and seconded by Ybarra to approve Resolution No. 2012-192. Motion carried, 4-0. 2. City Attorney Department Resolutions Nos. 2012-193 and 2012-194 were heard at the same time. a. Resolution No. 2012-193 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of an Attorney Services Agreement By and Between the City of Vernon and Mark E. Mandell d/b/a Mandell Municipal Counseling for Legal Services Regarding Municipal Revenue City Attorney, Nicholas Rodriguez explained that the bidding process for specialized services is not the best practice, as the bid is normally awarded to the lowest qualified bidder. Rodriguez explained that Mark Mandell specializes in municipal revenue; services that are needed now. Mandell is a sole proprietor that can provide expertise on a short term basis, with a contract not to exceed $35,000. b. Resolution No. 2012-194 - A Resolution of the City Council of the City of Vernon Authorizing the Issuance of a Request for Proposals for Legal Services Regarding Personnel and Labor Law Attorney Services City Attorney, Nicholas Rodriguez advised that Libert Cassidy Whitmore has been retained on a short term basis to assist with an immediate need for personnel procedures. However, due to the long term goals of the reform efforts, a request for proposals is being recommended for legal services. City Administrator, Mark Whitworth reported that Libert Cassidy Whitmore has been conducting a good job and anticipates that they will be participating in the bidding process. In response to Mayor Pro-Tem Davis, Rodriguez reported that both requests fall within budget. It was moved by McCormick and seconded by Maisano to approve Resolution No. 2012-193 and Resolution No. 2012-194. Motion carried, 4-0. 3. Community Services and Water Department a. Resolution No. 2012-195 - A Resolution of the City Council of the City of Vernon Accepting the Bid of Meta Housing Corporation and Approving and Authorizing the Execution of an Agreement to Negotiate Exclusively By and Between the City of Vernon and Meta Housing Page 4 of 10 Regular City Council Meeting Minutes October 16, 2012 Corporation for the 52nd Drive Housing Development Project Director of Community Services and Water, Kevin Wilson gave a presentation on the 52nd Drive Housing Development Project, reporting on the request for proposal and selection process. Wilson announced that Meta Housing Corporation had been selected as the most qualified. Wilson sought guidance on the concept design, modern versus classic. Wilson reported that part of the negotiation agreement will be to determine the City's monetary contribution. An increase to the number of units has been requested to increase the value of the land, and thus decreasing the City's potential contribution. In response to Councilmember McCormick, Wilson confirmed that the project will be low to moderate income housing, which will satisfy the criterion for funding. In response to Mayor Pro-Tem Davis, Wilson confirmed that there is the same number of units regardless of the concept. In response to Councilmember Ybarra's inquiry on whether the property will be leased or sold, Wilson advised that it will be part of the negotiation agreement. The units will be independently owned and operated by the developer, the details of which will also be part of the development agreement. Wilson advised that an amended zoning ordinance will first need to be approved by Council. Councilmember McCormick recommended the traditional concept design. Councilmember Maisano concurred and added that it would fit the surrounding environment. All were in agreement. It was moved by Ybarra and seconded by McCormick to approve Resolution No. 2012-195. Motion carried, 4-0. 4. Light & Power Department a. Resolution No. 2012-196 - A Resolution of the City Council of the City of Vernon Authorizing the Issuance of a Request for Proposals for the Function of Collection of PastDueReceivables Director of Light &Power, Carlos Fandino reported that the request for proposals will assist in the collection of late payments and non -payments in the Customer Service area. In response to Mayor Pro-Tem Davis, Fandino reported that delinquent accounts account for less than $100,000 but that the process for collecting fees takes up staff time and effort. In response to Councilmember Maisano, Fandino explained that there is no added cost; rather, the collections agency will take a portion of the funds collected. Councilmember Ybarra inquired this was something the City Attorney's Office could manage. City Attorney, Nicholas Rodriguez reported that the department is understaffed. Where it a single case or two, then the it could be managed by staff. However, Fandino clarified that the agency's service will be City wide. City Administrator, Mark Whitworth further added Page 5 of 10 Regular City Council Meeting Minutes October 16, 2012 that the agency will address the need left from the downsizing of departments. It was moved by Ybarra and seconded by McCormick to approve Resolution No. 2012-196. Motion carried, 4-0. b. Resolution No. 2012-197 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of an Attorney Services Agreement By and Between the City of Vernon and Kahn, Scares & Conway, LLP regarding Advisory Services for the Department of Light & Power Director of Light & Power, Carlos Fandino reported that in order to address the concerns over AB1900 and AB2196, a selection process was conducted for a lobbyist firm. Kahn, Scares & Conway, LLP due to their previous success in getting the bio- methane approved. Their services will be needed to address other bills concerning renewable portfolio standards ("RPS") and greenhouse gas. Their services are requested until the end of the fiscal year, with expenses not to exceed $90,000 Audience member Steve L'Ecluse of Bandini Truck Terminal, Inc. inquired whether the expense was necessary. In response City Administrator, Mark Whitworth advised that their services potentially saved customers 8% in RPS costs. It was moved by McCormick and seconded by Maisano to approve Resolution No. 2012-197. Motion carried, 4-0. c. Resolution No. 2012-198 - A Resolution of the City Council of the City of Vernon Terminating the Professional Services Agreement Approved by Resolution No. 2010-101 By and Between the City of Vernon and Port Canaveral Consultants, Inc., and Approving and Authorizing the Execution of a New Professional Services Agreement By and Between the City of Vernon and Port Canaveral Consultants, Inc. for Energy Project Management and Engineering Services Director of Light and Power, Carlos Fandino reported that during the JLAC audit it was noted that the agreement with Peter Hervish, DBA Port Canaveral Consultants, Inc., did not specify reimbursement for travel and other expenses. Fandino reported that Hervish provides unique consulting services for the Malburg Generating Station, Tehachapi Wind Project, and other specialized projects. Fandino requested that approval of the new agreement, advising that the cost remains the same, but that the expenses are further clarified. It was moved by Ybarra and seconded by McCormick to approve Resolution No. 2012-198. Motion carried, 4-0. NEW BUSINESS I.Approval of the City's contribution to the connection costs for new natural gas customers in the amount of $31,014. Director of Light & Power, Carlos Fandino advised that there are several customers that want to connect to the City's gas system but that the payback under the tariff is an issue. The Page 6 of 10 Regular City Council Meeting Minutes October 16, 2012 Department would like to expand the natural gas system and has proposed a supplemental installation charge and an increased payback period. Fandino explained that tariff schedule is not being amended but rather requests the contribution of $31,014 for the connection costs. In response to Councilmember McCormick, Fandino reported that the request involves 5 potential new customers. In a comparison between the City of Vernon and Southern California Gas, Fandino reported that the City's connection fees are higher due to our infrastructure. Fandino advised that after the payback period is over, revenue in the natural gas system will increase. It was moved by McCormick and seconded by Maisano to approve the City's contribution for the connection costs for the new natural gas system customers. Motion carried, 4-0. DISCUSSION ITEMS 1. Recommendation to maintain the salaries of various Department Head positions as previously adopted in Salary Resolution No. 2012-115. Human Resources Director, Teresa McAllister reported on the various positions comparing data from a large sample group and a small sample group. She recommended maintaining the salaries as previously adopted, as lowering the salaries would make positions in Vernon less competitive. Alternatively, salary ranges can be implemented with a minimum and maximum. McAllister advised that a study on fringe benefits is forthcoming. In response to Councilmember Ybarra, McAllister clarified that the data reflected the maximum and minimum salary schedule as actual salaries may include fringe benefits. In response to Independent Reform Monitor John Van De Kamp, McAllister advised that fringe benefits can account for approximately 20% of compensation. McAllister clarified that the survey was to compare the same information that was previously presented in May. ORAL REPORTS Interim Police Chief Daniel Calleros reported that on October 2, 2012, the Farm Animal Rights Movement group conducted two demonstrations at Framer Johns. Calleros advised that the demonstration was peaceful with the exception of two females who refused to move away from the driveway. They were subsequently arrested. On October 12, 2012, officers arrested two subjects for possession of stolen property. Officers observed the two subjects loading a box of merchandise from a roll -off dump truck into a van that was parked adjacent to the truck. During the course of the investigation it was determined the boxes of merchandise were stolen. Page 7 of 10 Regular City Council Meeting Minutes October 16, 2012 On October 14, 2012, a brandishing of a firearm was reported in the 4400 block of Ayers Avenue. The victim was walking home from work, when he was approached by an acquaintance; the suspect brandished a handgun demanding to speak with the victim. The victim fearing for his safety ran to Fire Station No. 4 to report the incident. The information provided by the victim will be followed up by detectives. Calleros reported that the canine and motorcycle units attended the Annual Boy Scout Pancake Breakfast at Fire Station No. 1 on October 13, 2012. The event was well attended. He encouraged these types of community events more frequently. Captain James Rodino reported that there were no acts of vandalism. Mayor Pro-Tem Davis reported vandalism at 5111 Hampton Avenue. Councilmember McCormick reported vandalism at Farmer John by Bandini Boulevard. Assistant Fire Chief, Andrew Guth reported that most responses have been routine in nature. The training focus for the month of October continues to be live fire training. Guth reported that there were over 300 in attendance at the Annual Boy Scout Pancake Breakfast. Guth announced that the department will continue to sell pink bracelets in honor of Breast Cancer awareness Month until the end of the month. Fire Chief, Mark Whitworth reported on a potential future agreement to enhance mutual aid with the City of Long Beach. Director of Light & Power, Carlos Fandino reported the completion of the arc flash upgrade relays. Fandino reported on the need to send a turbine to Scotland for necessary repairs. Fandino explained that parts for the turbine are almost non existent. He further expressed the need for urgency, as the down turbine will affect revenue. Proposals are being requested and will be presented for Council approval. Fandino reported on various power outages. He advised that the California Energy Commission guide book is anticipated to be ready in December. This will provide further guidance on renewable portfolio standards and the applicability of the bio- methane gas. Fandino announced the Electric Rates Advisory Committee meeting on October 17, 2012, to review the Light & Power Budget and provide an update on the status of the proposed rebate program. Director of Health and Environmental Control, Leonard Grossberg reported the completion of the solid waste audit. He announced Sustainability Open House on October 18, 2012, and the next Sustainable Development and Energy Efficiency Commission meeting on October 17, 2012, at 3:30 p.m. Director of Community Services and Water, Kevin Wilson reported that the Advisory Committee on Business Development Meeting had been adjourned due to a lack of quorum. Comments on the I-710 project have been submitted. The Water Department is working with the City Attorney on potential new rates. Wilson announced Page 8 of 10 Regular City Council Meeting Minutes October 16, 2012 the vacancy on the Business Development Committee, a recommendation to fill the vacancy will be presented to Council. Assistant to City Administrator, Alex Kung reported on the Oversight Board to the Successor Agency to the Redevelopment Agency meeting is on October 4, 2012. Main discussion topic was the sale for the Angelus Can site, it was determined that an appraisal for the site would be obtained in order to determine the appropriate value of the land before offers are entertained. The next Oversight board meeting is scheduled for November 1, 2012. City Administrator, Mark Whitworth announced the next Vernon Housing Commission meeting on December 12, 2012, at which point the lottery will be conducted for the housing waiting list. Whitworth reported on the election contest advising that the Hearing Officer issued her written findings on October 15, 2012. The next step is for City Council to make a decision at a public meeting based on the recommendations. Whitworth advised that the approval of the water rights will provide revenue for the general fund for this fiscal year. Alternative revenue sources are being reviewed for the April 2013 election. Whitworth advised that he has met with the Chamber of Commerce and a small business group to discuss potential revenue streams and reductions in expenditures. Whitworth reported on the employee meeting held on October 3rd and 4th and on the JLAC audit. He advised that the request for an updated matrix is ongoing. Whitworth reported on the progress of the search firms for the Police Chief and Finance Director positions. Search firms will be retained for the City Clerk, Fire Chief, and Assistant City Administrator positions. Councilmember Maisano reported on a letter submitted by Peter Corselli of Cold Storage Growers. He advised that Corselli made a valid point in that multiple hats were not necessarily a negative if employees are not compensated for the multiple positions. Maisano opined that good points were raised, and would like the City to move towards a positive direction. CLOSED SESSION At 10:50 a.m. it was moved by McCormick and seconded by Maisano that the City Council go into closed session to discuss the items listed under closed session. Motion carried, 4-0. 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Government Code Section 54956.8 Property: 2265 38th Street, Vernon, California Agency negotiator: Mark Whitworth, City Administrator/ Alex Kung, Assistant to the City Administrator Negotiating parties: Schwimmer Drapery Inc. Under negotiation: Price and Terms of Payment Page 9 of 10 Regular City Council Meeting Minutes October 16, 2012 2. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representatives: Mark Whitworth, Teresa McAllister Employee Organizations: Vernon Police Management Association, Vernon Fireman's Association, Vernon Police Officers' Benefit Association (Employee Group 2), Vernon Fire Management Association, Unrepresented Management, Top,, Middle and Professional Employees, Unrepresented Technical &IAdministrative Employees, and Non -Represented Employees 3. PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE Government Code Section 54957 4. SIGNIFICANT EXPOSURE TO LITIGATION Government Code Section 54956.9(b) One potential case At 11:57 a.m. it was moved by McCormick and seconded by Maisano, that the City Council exit closed session. Motion carried, 4-0. Chief City Attorney, Willard Yamaguchi advised that there was no reportable action, and advised that there were no further items on the agenda. At 11:58 a.m., it was moved by McCormick and seconded by Maisano, that the meeting be adjourned. Motion carried. C- F William J. DavJs Mayor Page 10 of 10