20130305 Regular City Council Meeting - MinutesMINUTES OF THE SPECIAL AND REGULAR CITY COUNCIL
MEETING OF THE CITY OF VERNON HELD TUESDAY, MARCH 5,
2013, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED
AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: Davis, McCormick, Maisano, Ybarra, Martinez
MEMBERS ABSENT: None
The Special meeting of the City Council was called to order at
8:30 a.m. by Mayor Davis.
PUBLIC COMMENT
Interim City Clerk, Dana Reed announced that this was the time
allotted for public comment on any matter on the special meeting
portion of the agenda that is closed session only. Mayor Davis
inquired whether anyone in the audience wished to address the
City Council. There was no response.
CLOSED SESSION
At 8:31 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, 5-0.
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(a)
Daniel O'Neil vs. City of Vernon
Case No. BS136243
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(a)
Name of Case: Stephen Agon vs. City of Vernon
Workers Compensation Case No. 11002383
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(a)
Name of Case: Gregory Bringhurst vs. City of Vernon
Workers Compensation Case No. CAWC-1112
At 8:50 a.m. it was moved by McCormick and seconded by Maisano,
that the City Council exit closed session. Motion carried, 5-0.
Mayor Pro-Tem McCormick called for a recess until the
commencement of the Regular City Council meeting at 9:00 a.m.
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The Regular meeting of the City Council was called to order at
9:00 a.m. by Mayor Davis. Councilmember McCormick led the flag
salute.
City Attorney Nicholas Rodriguez reported on the closed session
matters heard during the Special meeting portion of the agenda.
He reported that the matter concerning Daniel O'Neil vs. City of
Vernon was a discussion item only. A proposed settlement offer
Special and Regular City Council Meeting Minutes
March 5, 2013
concerning Stephen Agon vs. City of Vernon was approved but that
no final agreement has been reached. Lastly, he reported that
there is no reportable action for the matter concerning Gregory
Bringhurst vs. City of Vernon.
CHANGES TO THE AGENDA
Interim City Clerk Dana Reed announced that item no. 2 under the
Consent Calendar, the Minutes to the Special City Council
Meeting held January 8, 2013, is to be removed from the agenda.
The Minutes will be presented at the next Council meeting.
PUBLIC COMMENT
Interim City Clerk, Dana Reed announced that this was the time
allotted for public comment. Mayor Davis inquired whether
anyone in the audience wished to address the City Council.
There was no response.
PRESENTATIONS
1. Presentation by Macias, Gini & O'Connell, LLP on the
Annual Financial Report for fiscal year ending June 30,
2012.
Director of Finance William Fox reported that the annual report
from by Macias, Gini & O'Connell, LLP ("MGO") had been received.
MGO has conducted the City's financial audit for over twelve
years. Part of the report is a letter to the City on their
findings. He introduced representatives from MGO.
Jim Godsey of MGO reported on the letter to the City. Godsey
advised that the letter is a required communication. The audit
for fiscal year 2012 was completed using generally accepted
auditing standards and in accordance with governmental audit
standards. He reported that MGO's opinion is that the financial
statements present fairly in accordance with generally accepted
accounting standards. Godsey referred to this as a "clean
opinion."
The financial statements are a representation of management. He
reported that the City's management is very active in the
preparation and disclosure of the information presented in the
financial statements. Several meetings were held in order to
confirm its accuracy.
He clarified that MGO's purpose is to express an opinion; the
City and its management is still responsible for the City's
financial welfare. The financial audit report can be used as a
tool but it does not change the responsibility.
Godsey reported on internal controls and on their responsibility
as the auditors to understand said controls. Internal controls
have a significant impact on key items in the financial
statements, and if inadequate, could result in a misstatement.
Godsey reported on the process. He cautioned that review of the
internal controls is not intended to provide a level of
assurance.
MGO used sampling and judgment in its audit in order to reduce
the risk. Godsey reported that MGO had full access to records
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and no restrictions were placed. All were cooperative in the
process.
Bhakti Patel of MGO was the Director in charge of the
engagement. She reported on the significant auditing findings
as presented in the letter to the City. MGO did not note any
transactions that the City entered into for which there was lack
of authoritative guidance. All significant transactions were
recorded in the proper period. Patel reported and summarized
areas of focus where accounting estimates were used and there
could have been misrepresentation of information. She reported
that no issues were noted in these areas.
Patel reported on sensitive accounting disclosures as noted in
the letter. The City's long-term and short-term plans to
address the deficit in interfund borrowings were analyzed. It
is opined that they are "solid" plans, but MGO will continue to
review in subsequent years. Patel reported on Note 14, advising
that the State Department of Finance will be making a decision
on whether a transfer of non cash assets between the City and
the former Redevelopment Agency is allowed.
Godsey stated that it is important for sensitive accounting
disclosures to be adequately described in the financial
statements. The general fund deficit is of concern. Godsey
opined that this is a result of what's happened to the City in
recent years; the notoriety and the changes. Though the changes
have been positive, there is the issue of the deficit.
Godsey reported that there were no uncorrected material
misstatements. Management had a few minor uncorrected
misstatements but they are not material and MGO is in agreement.
MGO received written confirmation from management that the
information represented in the financial statements is accurate.
Fox thanked the representatives for their presentation. As part
of the subsequent events of the audit, extensive work was
conducted by the Finance Department and the City Administration
Department to provide the proper comfort to the outside auditors
that the City has been making positive strides this fiscal year.
Fox reported that by the end of the 2013 fiscal year the City
will be close to its budget. A lot of work has been done to
manage expenses. The ballot measures, if approved by the
voters, will assist the City on a go forward basis. He advised
that staff agrees with MGO's findings.
CONSENT CALENDAR
Councilmember Ybarra requested further discussion on the claims
against the City, Item no. 1 on the Consent Calendar. Said item
was removed from the Consent Calendar and will be addressed
immediately after the Consent Calendar.
It was moved by McCormick and seconded by Maisano to approve the
remaining matters listed on the Consent Calendar as recommended
that is items nos. 3 through 12. Motion carried, 5-0.
Claims Against the City - Received and Transmitted to the
Department of Finance
1. Removed.
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Minutes Approval
2. Removed during the announcement of changes to the agenda.
3. Minutes of the Special City Council Meeting held January
15, 2013, to be received and filed.
4. Minutes of the Special City Council Meeting held January
22, 2013, to be received and filed.
Warrant Registers
5. Ratification of the following City Warrant Registers to
record the following voided checks:
a. City Warrant Register No.
No. 340010 in the amount
b. City Warrant Register No.
No. 340087 in the amount
1373 to record voided Check
of $681.48; and
1374 to record voided Check
of $4,499.55.
6. Ratification of Light and Power Warrant Register No. 338
to record voided Check No. 509826 in the amount of
$395.96.
7. Approval of City Warrant Register No. 1375, totaling
$985,197.95, which covers the period of February 12,
through February 25, 2013, and consists of the following:
a. Ratification of wire transfers totaling $735,967.20;
and
b. Ratification of the issuance of early checks totaling
$183,618.76; and
c. Authorization to issue pending checks totaling
$65,611.99.
8. Approval of Light & Power Warrant Register No. 340,
totaling $3,779,563.94, which covers the period of
February 12, through February 25, 2013, and consists of
the following:
a. Ratification of wire transfers totaling $3,746,500.33;
and
b. Ratification of the issuance of early checks totaling
$9,394.49; and
c. Authorization to issue pending checks totaling
$23,669.12.
9. Approval of Gas Warrant Register No. 128, totaling
$1,546.67, which covers the period of February 12, through
February 25, 2013, and consists of the following:
a. Ratification of the issuance of early checks totaling
$225.47; and
b. Authorization to issue pending checks totaling
$1,321.20.
Fire Department
10. Activity Report for the period of February 1, through
February 15, 2013, to be received and filed.
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Light & Power Department
11. November 2012 Resource Procurement Report, to be received
and filed.
Police Department
12. Activity Log and Statistical Summary of Arrest and
Activities for the period of February 1, through February
15, 2013, to be received and filed.
REMOVED ITEM FROM THE CONSENT CALENDAR
Councilmember Ybarra stated that there was no staff report for
the claims against the City, Item no. 1 as listed on the agenda
under the Consent Calendar:
Claim for Damages from Commercial Sand Blast, Claim No.
CV130342, was received February 13, 2013. Amount of claim
$915.60.
The City Attorney, Nicholas Rodriguez, reported that the Council
adopted an ordinance giving the Finance Director administrative
authority to investigate and settle claims against the City
under $5,000. When claims are received, City Council is to be
made aware of said claims.
Councilmember Ybarra requested that a staff report providing the
status of the claim be included for the next incident.
Rodriguez advised that the item is administrative but that more
information can be provided if Council requests.
Finance Director William Fox reported that further investigation
is necessary; no determination has been made at this time.
Councilmember Ybarra advised that a Staff Report informing of
the same would be acceptable for future claims.
Fox noted that this is a good example of a new process, where
some of the details still need to be worked out.
Interim City Clerk Dana Reed clarified that there is no
recommended action; the matter is for informational purposes
only.
RESOLUTIONS
Human Resources Department
1. Resolution No. 2013-38 - A Resolution of the City Council
of the City of Vernon Granting the Disability Retirement
of Daniel O'Neil, a Local Safety Member Formerly Employed
by the City of Vernon (Government Code Sections 21154 and
21156) :
Recommendation for Council to re -consider their
previous decision (Resolution No. 2011-08) denying an
Industrial Disability Retirement Application for
Daniel O'Neil and based on a re-evaluation of this
case, adopt the resolution approving an Industrial
Disability Retirement based on competent medical
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evidence, that Mr. O'Neil is substantially
incapacitated from the performance of his usual and
customary duties as a Police Officer for the City of
Vernon.
Director of Human Resources Teresa McAllister reported that
Daniel O'Neil was formerly employed by the City of Vernon. In
accordance with HIPAA law, the details cannot be discussed. It
is a litigated case.
Legal Counsel Joung Yim recommends approval of the disability
retirement based on competent medical evidence.
It was moved by McCormick and seconded by Ybarra to approve
Resolution No. 2013-38. Motion carried, 5-0.
ORDINANCES
1. Ordinance No. 1202 - An Ordinance of the City Council of
the City of Vernon Adding a New Article I, Section 2.4, to
Chapter 2 of the Vernon Municipal Code to Establish a
Personnel Merit System and Amending Article I, Section
2.6-6(c), regarding the Authority of the City
Administrator in Personnel Matters and Organization
(second reading)
City Attorney Nicholas Rodriguez reported that changes were made
to the Ordinance in accordance with the two previous discussions
during City Council deliberations. The City Council and not the
City Administrator has the authority to appoint Department
Heads. The City Administrator shall advise the City Council on
any termination prior to its effective date.
It was moved by McCormick and seconded by Maisano to adopt
Ordinance No. 1202. A role call vote was taken:
- Councilmember Martinez, yes
- Councilmember Ybarra, yes
- Councilmember Maisano, yes
- Mayor Pro-Tem McCormick, yes
- Mayor Davis, yes
Motion to adopt Ordinance No. 1202 carried unanimously.
2. Ordinance No. 1203 - An Ordinance of the City Council of
the City of Vernon Updating the Comprehensive Zoning
Ordinance of the City of Vernon Providing Additional and
Amended Use Definitions and Language Clarification by
Amending Chapter 26 of the Vernon City Code (second
reading)
It was moved by Maisano and seconded by Ybarra to adopt
Ordinance No. 1203. A roll call vote was taken:
- Councilmember Martinez, yes
- Councilmember Ybarra, yes
- Councilmember Maisano, yes
- Mayor Pro-Tem McCormick, yes
- Mayor Davis, yes
Motion to adopt Ordinance No. 1203 carried unanimously.
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3. Ordinance No. 1204 - An Uncodified Ordinance of the City
Council of the City of Vernon Approving the Development
Agreement Between the City and Meta Housing Corporation
(second reading)
It was moved by McCormick and seconded by Martinez to adopt
Ordinance No. 1204. A roll call vote was taken:
- Councilmember Martinez, yes
- Councilmember Ybarra, yes
- Councilmember Maisano, yes
- Mayor Pro-Tem McCormick, yes
- Mayor Davis, yes
Motion to adopt Ordinance No. 1204 carried unanimously.
ORAL REPORTS
Police Chief, Daniel Calleros reported on an attempted strong
arm robbery that was reported on February 20, 2013, in the area
of Atlantic and Bandini Boulevard. The victim was riding his
bicycle and was struck by a vehicle. Three suspects from the
vehicle physically assaulted the victim and attempted to take
his bicycle. The victim managed to overpower his attackers and
they subsequently fled the scene.
On February 22, 2013, an unmarked patrol vehicle conducting
surveillance witnessed a battery theft. Both subjects were
immediately detained. The investigation revealed that the
subjects had broken into the vehicle by breaking a passenger
window. Officers also checked the immediate area and discovered
that a second vehicle had its battery stolen. The battery taken
from said vehicle was found in the suspects, vehicle. Both
suspects confessed to the crimes. Calleros noted that there has
been a recent string of vehicle battery thefts.
On February 26, 2013, an armed robbery was reported in the 5500
block of District Boulevard. The victim was working on his
vehicle in his place of employment when a suspect approached
brandished a handgun, and demanded his money and cellular phone.
The victim complied with the demands. The suspect fled on foot
and entered a vehicle that was parked nearby. There are few
leads in this case. Detectives will be following up on video
footage of the crime located at a nearby business.
Calleros reported that on March 4, 2013, City staff reported a
stolen fire hydrant on Slauson Avenue. The fire hydrant was
physically removed from the mounting base; no evidence was found
that would suggest that the fire hydrant was severed and later
taken as a result of traffic accident. There are no leads in
this case.
Calleros announced that on March 10, 2013, police and fire
personnel will be participating in the annual Alameda Rail
Corridor exercise. The purpose of the exercise is to provide
agencies that typically respond to incidents in the area
scenario driven simulations that allows them to become familiar
with and test the safety features of the corridor. There will
be some traffic impact. The Reverse911 notification method will
be used. He noted that this is the third year conducting the
exercise and that traffic impact has been minimal.
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Lieutenant Jerry Winegar reported vandalism on February 22,
2013, and February 23, 2013. Vandalism on February 24, 2013,
resulted in the arrest of two suspects.
Mayor Davis reported on vandalism at the U.S. Post Office.
Interim Fire Chief, David Kimes reported that there have been
approximately 45 service calls since the last Council meeting,
no significant incidents to report. Kimes reported that the
engineering training and the MCI training had been completed.
City Administrator Mark Whitworth clarified that all incidents
are significant. As safety personnel incidents become routine.
Director of Light & Power Carlos Fandino reported that no bids
from the City of Vernon were selected during the California Air
Resource Auction. The City will be participating in the next
auction for greenhouse gas credits.
Fandino reported on a car hit pole incident that occurred on
February 19, 2013, that resulted in no power outage. On
February 22, 2013, a decaying cable was discovered and replaced
before it could cause a power outage. On February 25, 2013, a
power outage occurred affecting numerous customers. Overhead
arching was observed in the area of Santa Fe Avenue and 52th
Street. Fandino noted that a Southern California Edison line
was the cause.
Fandino announced the cancellation of the Advisory Committee on
Electric Rates meeting on March 6, 2013. The next Committee
meeting is scheduled for June 5, 2013. He advised that a
comparative rate study and an update on the Light & Power
Department will be presented. There will be no recommendation
to change the electric rate increase. A 20 rate increase is
scheduled to take effective July 1, 2013.
Fandino reported that the bio methane issue for the renewable
portfolio standards has not been resolved. The California
Energy Commission is scheduled to have a hearing within the next
few months.
Chief Deputy Director of the Health and Environmental Control
Department David LeDuff remind all that the E-Waste event will
be held on March 13, 2013 from 10 a.m. to 2 p.m. at Fire Station
No. 1.
Director of Community Services and Water Kevin Wilson announced
the Advisory Committee on Business Development meeting on March
13, 2013. The Committee will be discussing the zoning
ordinance. A presentation by the Finance Director will be made,
and a recommendation to amend the meeting frequency will be
considered.
Human Resources Director Teresa McAllister announced the closing
of the request for proposals. She reported that four bids were
received for the compensation study and that eleven bids were
received for the benefits consultant.
Director of Finance William Fox reported on the presentation
made to the Vernon Chamber of Commerce on February 21, 2013, on
the City's finances. He anticipates making a similar
presentation once every six months. He announced the closing of
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the request for proposals ("RFP"). He reported that eight bids
for insurance brokers were received. He noted that placing the
RFP online and making contacts resulted in a good response.
Fox announced that the RFP for the cost allocation study will be
closing on March 14, 2013. Similar methods of publicizing and
solicitingwere used.
Assistant to the City Administrator Alex Kung announced that the
Successor Agency to the Redevelopment Agency will be considering
the Recognized Obligation Payment Schedule 4 and a closed
session item at the conclusion of the Council meeting. The
Oversight Board to the Successor Agency to the Redevelopment
Agency meeting is rescheduled to March 21, 2013.
Kung reported on his efforts with the Grant Coordinator and
reported on various potential grants.
City Administrator Mark Whitworth reported on the informational
presentations held on the proposed tax measures. The
presentations were well attended.
He reported that the Teamsters have filed a petition for
miscellaneous employees. The applications deadline for the Fire
Chief position closed on February 25, 2013. Fifty-three
candidates submitted applications, including several internal
candidates. Search firm Roberts' Consulting will be reviewing
the applications.
Hearing no other business at 9:52 a.m., it was moved by
McCormick and seconded by Maisano, that the meeting be
adjourned. Motion carried.
-1)k�l 14
DaAA Reed
Interim City Clerk
04
W. Michael McCormick
Mayor
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