20130416 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE
CITY OF VERNON HELD TUESDAY, APRIL 16, 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 meeting was called to order at 9:00 a.m. by Mayor Davis.
Councilmember Ybarra led the flag salute.
CHANGES TO THE AGENDA
Interim City Clerk Dana Reed announced that the discussion and
possible directives to staff agenda item regarding Mayor Davis'
request to discuss the compensation of the City Council members
as it relates to the recommendation made by Independent Reform
Monitor John Van de Kamp is remove from the agenda and will be
addressed at the May 7, 2013, City Council meeting under old
business.
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.
Derrick Alatorre of the South Coast Air Quality Management
District presented information on the enforcement actions at the
Exide Technologies ("Exide") facility located in Vernon. A
Health Risk Assessment was required. Alatorre noted that
monitoring stations indicate that the assessment results were
over estimated. Exide has taken action to address the concerns
and have implemented a temporary solution. They are required to
submit a final risk plan by September for a permanent solution.
A public notification hearing is also required.
Marisa Olguin, President of the Vernon Chamber of Commerce,
congratulated Mayor Davis on his reelection.
She reported that Exide is a member of the Chamber and that the
Chamber was alerted to the issue through a public notice. The
Chamber supports clean air requirements and agrees that all
Vernon business should be compliant with regulations. The
Chamber offers various programs to assist businesses with
compliance, and has offered their services to Exide to assist
with the public notice hearing.
Olguin expressed the importance of the Ad Hoc Advisory Committee
on Business Development ("BDC"). Olguin requested that Council
table the recommendation to terminate the BDC. The Chamber is
open to working with the City in order to make the BDC
successful. As part of the reform efforts, there are still many
issues that need to be addressed through the BDC. She
reiterated the request to table the recommendation to terminate
the BDC and make necessary changes.
Olguin announced the Chamber's Installation and Awards Luncheon
on Wednesday, April 24, 2013 at 12:00 p.m. and encouraged all to
attend.
Regular City Council Meeting Minutes
April 16, 2013
ELECTION MATTERS
1. Resolution No. 2013-43 - A Resolution of the City Council
of the City of Vernon, California, Reciting the Fact of
the General Municipal Election Held on April 9, 2013,
Declaring the Results and Such Other Matters as provided
by Law.
Recommendation:
(1) Accept the Certificate of Canvass; and
(2) Adopt a Resolution declaring the results of the
General Municipal Election held April 9, 2013,
declaring that William J. Davis is elected to the
office of member of the City Council and that Measures
K, L, and M are approved; and
(3) Authorize the Interim City Clerk to deliver the
Certificate of Election and administer the oath of
office to William J. Davis; and
(4) Elect a Mayor and a Mayor Pro-Tem.
It was moved by McCormick and seconded by Ybarra to approve
Resolution No. 2013-43. Motion carried, 5-0.
Interim City Clerk Dana Reed presented the Certificate of
Election and administered the Oath of Office to William J.
Davis.
2. Election of Mayor, and Election of Mayor Pro-Tem.
Councilmember Ybarra nominated Davis for Mayor. Councilmember
Maisano nominated McCormick for Mayor. Hearing no other
nominations, a roll call vote was taken:
- Martinez voted for McCormick
- Ybarra voted for Davis
- Maisano voted for McCormick
- McCormick voted for himself
- Davis voted for himself
McCormick was elected as the Mayor, 3-2.
Councilmember Ybarra nominated Davis for Mayor Pro-Tem. With no
other nominations, Davis was elected as Mayor Pro-Tem.
PRESENTATIONS
1. Service Pin Awards
The City Council recognized Police Officer Phillip Swinford,
Police Officer Paul Cerda, Utilityman III Gabriel Aldrete,
Police Officer Alexy Escobedo, and Police Officer Rafael Landa
for their many years of service as they could not attend the
meeting.
CONSENT CALENDAR
Interim City Clerk Dana Reed announced that the City Council
Minutes are now current as of the last meeting.
It was moved by Davis and seconded by Maisano to approve the
matters listed on the Consent Calendar as recommended. Motion
carried, 5-0.
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April 16, 2013
Claims Against the City (to be received and filed)
1. Claim for Damages from the Edgar Agusto Martinez was
received April 4, 2013. Amount of claim is approximately
$6,000.00. - Received and Transmitted to the Department of
Finance.
2. Claim for Damages from the Law Offices of Jacques
Beugelmans was received April 8, 2013. Amount of claim
exceeds $10,000.00. - Received and Transmitted to the
Department of Finance.
Minutes Approval
3. Minutes of the Special and Regular City Council Meeting
held March 5, 2013, to be received and filed.
4. Minutes of the Regular City Council Meeting held March 19,
2013, to be received and filed.
Warrant Registers
5. Ratification of following City Warrant Registers to record
voided checks:
a. City Warrant Register No. 1375 to record voided Check
No. 340272 in the amount of $48.25; and
b. City Warrant Register No. 1375 to record voided Check
No. 340229 in the amount of $500.00; and
c. City Warrant Register No. 1376 to record voided Check
No. 340335 in the amount of $460.00; and
d. City Warrant Register No. 1376 to record voided Check
No. 340354 in the amount of $299.99; and
e. City Warrant Register No. 1376 to record voided Check
No. 340374 in the amount of $225.68.
6. Approval of City Payroll Warrant Register No. 682,
totaling $2,516,065.53, which covers the period of
February 10, through March 9, 2013, and consists of the
following:
a. Ratification of direct deposits, checks and taxes
totaling $1,811,563.85; and
b. Ratification of checks and electronic fund transfers
totaling $704,501.68.
7. Approval of City Warrant Register No. 1377, totaling
$1,542,241.65, which covers the period of March 12,
through April 8, 2013, and consists of the following:
c. Ratification of wire transfers
and
d. Ratification of the issuance of
$587,224.15; and
e. Authorization to issue pending
$156,871.15; and
f. Record voided Check Nos. 340425
$7,114.18.
totaling $798,146.35;
early checks totaling
checks totaling
and 340427, totaling
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April 16, 2013
8. Approval of Light & Power Warrant Register No. 342,
totaling $6,011,254.05, which covers the period of March
12, through April 8, 2013, and consists of the following:
a. Ratification of wire transfers totaling $5,813,141.34;
and
b. Ratification of the issuance of early checks totaling
$153,412.35; and
c. Authorization to issue pending checks totaling
$44,700.36.
9. Ratification of Gas Warrant Register No. 129 to record
voided Check No. 982 in the amount of $1,347.27.
10. Approval of Gas Warrant Register No. 130, totaling
$1,957,964.87, which covers the period of March 12,
through April 8, 2013, and consists of the following:
a. Ratification of wire transfers totaling $1,779,977.40;
and
b. Ratification of the issuance of early checks totaling
$124,876.17; and
c. Authorization to issue pending checks totaling
$53,111.30
Community Services and Water Department
11. Building Department Report for the month of March 2013, to
be received and filed.
12. Traffic Signal Maintenance Contract, Aegis ITS, Inc.,
Annual Renewal (Extension) for 2013-2014.
Recommendation:
(1) Find that the approval of the Traffic Signal
Maintenance Agreement extension is exempt under the
California Environmental Quality Act ("CEQA") in
accordance with Section 15301, Existing Facilities,
Class 1, maintenance, because this project only
consists of maintenance and repair of the City's
traffic signals.
(2) Approve by Change Order, the extension to the Traffic
Signal Maintenance Contract with Aegis ITS to provide
traffic signal maintenance services for the City of
Vernon for one year period commencing May 1, 2013, to
April 30, 2014. The underlying Contract with Aegis ITS
was awarded by a competitive process, and this
extension is consistent with the scope of the
competitive process.
Finance Department
13. Approval of Koras Cash Express request to perform a mobile
check cashing service in the City of Vernon.
Recommendation:
(1) Find that approval of the proposed action for Koras
Cash Express to perform a mobile check cashing service
is exempt under the California Environmental Quality
Act ("CEQA"), in accordance with Section 15061(b)(3),
the general rule that CEQA only applies to projects
that may have an effect on the environment; and
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(2) Approve Koras Cash Express to perform a mobile check
cashing service in the City of Vernon, as the company
has met all the requirements as specified under
Chapter 18 of the City of Vernon Code of Ordinances.
Fire Department
14. Activity Report for the period of March 1, through March
15, 2013, to be received and filed.
15. Activity Report for the period of March 16, through March
31, 2013, to be received and filed.
Health Department
16. March 2013 Monthly Report, to be received and filed.
Police Department
17. Activity Log and Statistical Summary of Arrest and
Activities for the period of March 1, through March 15,
2013, to be received and filed.
18. Activity Log and Statistical Summary of Arrest and
Activities for the period of March 16, through March 31,
2013, to be received and filed.
NEW BUSINESS
City Administration Department
Resolution Nos. 2013-44 and 2013-45 were addressed at the same
time.
1. Resolution No. 2013-44 - A Resolution of the City Council
of the City of Vernon Approving and Authorizing the
Execution of an Addendum to the Memorandum of
Understanding by and between the City of Vernon and the
Vernon Police Officers' Benefit Association (Employee
Group 2).
Recommendation:
(1) Find the approval of the proposed resolution approving
an addendum to amend the Memorandum of Understanding
as it relates to the VPOBA Retiree Medical/Dental
Benefit Plan is exempt under the California
Environmental Quality Act ("CEQA") in accordance with
Section 1506(b)(3), the general rule that CEQA only
applies to projects that may have an effect on the
environment; and
(2) Approve and adopt the resolution amending the VPOBA
Retiree Medical/Dental Benefit Plan in compliance with
the 2012-2014 Memorandum of Understanding between the
City and the VPOBA; and
(3) Authorize the City Administrator and Director of Human
Resources to execute said Addendum to the 2012-2014
Memorandum of Understanding between the City of Vernon
and employees represented by the VPOBA.
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2. Resolution No. 2013-45 - A Resolution of the City Council
of the City
Benefit Plan
Association.
of Vernon Amending the Retiree Medical/Dental
relating to the Vernon Police Management
Recommendation:
(1) Find that approval of the proposed resolution amending
the Retiree Medical/Dental Benefit Plan as it relates
to the Vernon Police Management Association is exempt
under the California Environmental Quality Act
("CEQA") in accordance with Section 15061(b)(3), the
general rule that CEQA only applies to projects that
may have a effect on the environment; and
(2) Approve and adopt the Resolution amending the Vernon
Police Management Association ("VPMA") Retiree
Medical/Dental Benefit Plan.
Human Resources Director Teresa McAllister advised that the two
recommended Resolutions are part of continued negotiations for
the retiree medical/dental benefits as identified in the 2012
through 2014 VPOBA and VPMA agreements. McAllister reported
that she was assigned as the chief negotiator between the City
and the Associations.
All parties agreed that the benefit would be capped at the
current rate. The recommendations also included clarifying
language that the benefit is not a cash -out value. This will
allow for the City to control cost. Previously, the benefit was
open ended, but is now capped at $1,100 per month for
medical/dental premiums. The recommendations offer no more
benefits than what was previously specified in the original
agreements.
It was moved by Councilmember Maisano and seconded by
Councilmember Martinez to approve Resolution No. 2013-44 and
Resolution No. 2013-45. Motion carried.
Community Services and Water Department
3. Participation in a Watershed Management Program as Part of
the Los Angeles County Municipal Separate Storm Sewer
System National Pollutant Discharge Elimination System
Permit.
Recommendation:
(1) Find that the City of Vernon's participation in a
Watershed Management Program ("WMP") as part of the
Los Angeles County Municipal Separate Storm Sewer
System (11MS411) National Pollutant Discharge
Elimination System ("NPDES") permit is exempt under
the California Environmental Quality Act ("CEQA") in
accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an
effect on the environment; and
(2) Approve participation by the City of Vernon in a WMP
in cooperation with neighboring cities and
administered by the Gateway Cities Council of
Government ("GCCOG"), and as set forth in the Staff
Report.
Director of Community Services and Water Department Kevin Wilson
advised that the recommendation will address the Total Maximum
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Daily Load ("TMDL") compliance under the NPDES permit. He
explained that there are certain thresholds for various
contaminants. The City is required to develop a plan in order
to meet the criterion; however, there are various options. If
the City were to undertake the task on its own, it would need to
be in full compliance by June 2013. Wilson opined that this is
impractical and not cost effective.
Alternatively, the City can join with other jurisdictions and
develop a WMP or an Enhanced Watershed Management Program
("EWMP"). Under the EWMP, construction of capture or
infiltration structures is required. This option could
potentially be expensive in that even after the TMDL criterion
has been met, there is no relief from continued construction of
said structures. However, any overflow will not be subject to
the TMDL criterion.
Wilson is recommending the WMP as it does not have any capture
or infiltration structures requirement; TMDL criterion can be
satisfied by any means as seen fit. The WMP will be developed
with neighboring communities. Wilson opined that it is the most
economical route. Participating cities include Commerce, Bell,
Bell Gardens, Cudahy, Maywood, and Huntington Park.
Wilson advised that the City can also join Los Angeles, but
cautioned that Vernon's input would be limited and Vernon would
be subject to their mandates.
As part of the recommendation GCCOG will be used for
administrative support to coordinate the request for proposals
and collect fees.
The City and other participating cities will have one year to
comply. Wilson opined that the task can be accomplished within
the given time frame. The City's estimated cost is $100-200
thousand for the plan preparation. Staff will report back as
the plan is developed.
In response to Councilmember Ybarra, Wilson confirmed that this
is a shared costs, the total estimated cost for the plan
preparation is $800,000.
Mayor Pro-Tem Davis and Mayor McCormick opined that the WMP is
the best route, in that it is a shared cost.
It was moved by Davis and seconded by Ybarra to approve the
City's participation in a Watershed Management Program. Motion
carried, 5-0.
Items Nos. 4 through 6 were addressed at the same time.
4. Approve Maintenance Agreement, Option No. 2, between the
City of Vernon and Los Angeles County Flood Control
District ("LACFCD").
Recommendation:
(1) Find that the proposed Maintenance Agreement
("Agreement"), Option No. 2, between the City of
Vernon and LACFCD is exempt under the California
Environmental Quality Act ("CEQA") in accordance with
Section 15061(b)(3), the general rule that CEQA only
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April 16, 2013
applies to projects that may have an effect on the
environment; and
(2) Approve the proposed Agreement, Option No. 2, between
the City and LACFCD in order to allow the City to
perform its own maintenance and cleaning of the LACFCD
catch basins that exist within the confines of the
City. This Agreement provides the City control over
cleaning frequencies and will enable staff to closely
monitor all costs associated with this work.
Director of Community Services and Water Department Kevin Wilson
reported that as part of the National Pollutant Discharge
Elimination System ("NPDES") permit's Total Maximum Daily Load
("TMDL") compliance, Gateway Water Management Authority secured
$10 million in funding to install trash excluders ("excluders")
within the catch basins. Of the 875 catch basins in Vernon, 437
are owned by LACFCD. Two options for the maintenance of the
excluders were presented.
Wilson advised that Option 2 is recommended. The City will be
responsible for the maintenance of the excluders on all the
catch basins within the City. Wilson reported that $25,000 has
been budgeted for this service.
5. Approval of a Service Agreement between the City of Vernon
and Ron's Maintenance, Inc. for Catch Basin Maintenance
and Cleaning Services.
Recommendation:
(1) Find that the proposed Service Agreement between the
City of Vernon and Ron's Maintenance, Inc. for Catch
Basin Maintenance and Cleaning Services is exempt
under the California Environmental Quality Act
("CEQA") in accordance with Section 15061(b)(3), the
general rule that CEQA only applies to projects that
may have an effect on the environment, and
(2) Accept the bid of Ron's Maintenance Service and
authorize the City Administrator to enter into the
approved form of a Service Agreement between the City
of Vernon and Ron's Maintenance, Inc. for Catch Basin
Maintenance and Cleaning Services in an amount not to
exceed $150,000 over the three year Agreement period;
pursuant to a bid by the Los Angeles Gateway Region
Integrated Regional Water Management Joint Powers
Authority (Gateway Water Management Authority).
Director of Community Services and Water Department Kevin Wilson
reported that the Gateway Water Management Authority sought bids
for the maintenance of the trash excluders for the catch basins.
Ron's Maintenance, Inc. was determined to be the lowest most
responsible bidder. Wilson advised that contracting the work
will be more economical than using City staff given the recent
reduction in staff. The recommended agreement is for three
years, with a cost not to exceed $150,000 for said three years.
6. Contract No. CS-0275 - Citywide Concrete Repair and
Replacement Fiscal Year 2013-2014 Bid Award.
Recommendation:
(1) Find that the Bid Award of the proposed Citywide
Concrete Repair and Replacement is exempt under the
California Environmental Quality Act ("CEQA") in
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accordance with Section 15301, Existing Facilities,
part (c), existing highways and streets, because the
project is merely to repair existing streets; and
(2) Authorize the City Administrator to accept the Bid
from Mora's Equipment & Construction, Inc., as the
lowest responsive and responsible bidder and enter
into a contract not to exceed $44,000, for Contract
No. CS-0275, Citywide Concrete Repair and Replacement
for FY 2013-2014, and to reject all other bids.
Director of Community Services and Water Department Kevin Wilson
reported that the notice for bids was approved under Resolution
No. 2013-35. In response, the City received six bids. Mora's
Equipment & Construction, Inc. was selected as the lowest bidder
at approximately $39,000 in costs. Wilson clarified that the
recommendation includes authorization of $44,000 for the
Citywide Concrete repair costs in order to allow flexibility
should the need arise.
It was moved by Davis and seconded by Maisano to 1) approve the
Maintenance Agreement, Option No. 2, with the Los Angeles County
Flood Control District, 2) approve the Service Agreement between
Ron's Maintenance Inc., and 3) award the bid for Contract No.
CS-0275 to Mora's Equipment & Construction, Inc. Motion
carried, 5-0.
7. A Resolution of the City Council of the City of Vernon
Terminating the Ad Hoc Advisory Committee for Business
Development.
Recommendation:
(1) Find that the action to terminate the Ad Hoc Advisory
Committee for Business Development ("BDC") is exempt
under the California Environmental Quality Act
("CEQA") in accordance with Section 15061(b)(3), the
general rule that CEQA only applies to projects that
may have an effect on the environment; and
(2) Terminate the BDC as established by Resolution No.
2011-69, with the understanding that the City
Administrator may create ad hoc or standing groups
from time to time as necessary to advise him on
business development matters; and
(3) Deliver a Certificate of Appreciation to each member
of the Committee for their dedicated service to the
community by serving on the BDC.
City Administrator Mark Whitworth reported that the creation of
the Ad Hoc Advisory Committee for Business Development ("BDC")
was part of the reform efforts.
Director of Community Services and Water Department Kevin Wilson
reported that issues such as the tax measures and the housing
element were addressed.
Whitworth explained that the BDC meetings have been poorly
attended and there is often a lack of quorum. The City wants to
enhance the business community, but this forum has not been
successful.
Whitworth reported that since the posting of the agenda,
multiple concerns were received on the recommendation to
terminate the BDC.
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Mayor McCormick motioned to authorize the City Administrator to
meet with the Vernon Chamber of Commerce to address some of the
issues. He further recommended tabling the item, and exploring
other ways to accomplish the same goals.
Councilmember Ybarra recommended that the Council take the
position to not terminate the BDC as it is important to the
community. If a quorum is the issue, he recommended alternative
Committee members.
Councilmember Maisano agreed that the item should be tabled in
order to allow sufficient time to get resolution, accommodating
the Chamber and the businesses.
Mayor Pro-Tem Davis officially seconded Mayor McCormick's motion
to table the item.
Independent Reform Monitor John Van de Kamp reported that the
BDC was part of his recommendations in order for the businesses
to have a voice and to stimulate new business opportunities in
Vernon. He supports the recommendation of new Mayor McCormick.
Van de Kamp advised that due to the formality of the Committee
it was limited by Brown Act requirements.
Peter Corselli of U.S. Growers Cold Storage is please that the
Council is not ready to terminate the Committee. Corselli
advised that of the meetings he attended there was positive
input from the community. The issue is getting participation,
and opined that perhaps the right people are not on the
Committee. He also recommended additional notification so that
the public is aware of when the meetings are held.
A vote was taken on the motion to table the Resolution
Terminating the Ad Hoc Advisory Committee for Business
Development. Motion carried, 5-0.
Light & Power Department
8. Resolution No. 2013-46 - A Resolution of the City Council
of the City of Vernon Approving the City of Vernon Light
and Power Department Economic Development Rate, the
Agreement for an Economic Development Incentive on
Electric Services and the Affidavit for Economic
Development Regarding Electrical Rates to be Charged for
Electrical Energy Distributed and Supplied by the City
within its Boundaries.
Recommendation:
(1) Find that approvals requested are exempt under the
California Environmental Quality Act ("CEQA") in
accordance with Section 15061(b)(3), the general rule
that CEQA only applies to project that may have an
effect on the environment; and
(2) Approve (a) the City of Vernon Light and Power
Department Economic Development ("ED") rate, (b) the
Agreement for an Economic Development Incentive on
Electric Service, and (c) the Affidavit for Economic
Development, all designed to attract new load to the
City and encourage existing customers to add load,
while providing electric revenues to Vernon that are
adequate to cover the City's marginal cost of
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April 16, 2013
providing electric service,
contribution to the City's
service) costs.
plus a reasonable
fixed financing (i.e. bond
Director of Light & Power Department Carlos Fandino advised that
in order to attract new large users and encourage existing
customers to increase their electricity use ("load"), up to 200
reduction incentive on the applicable tariff for 5 years on new
loads is being recommended. Through economies of scale the
City will still be able to cover its debt coverage obligation.
Fandino noted that there has been some customer interest.
Peter Corselli of U.S. Growers Cold Storage and Vice Chairperson
of the Ad Hoc Advisory Committee on Electric Rates ("ERC")
opined that the recommendation is something that should have
been presented to the ERC. He argued that the incentive should
be offered to all, as it excludes existing large users. He is
in favor of encouraging new business in Vernon, but believes it
should be equitable.
In response to a representative from Bakers Commodities, Fandino
advised that the recommendation does not affect existing
customers. However, if an existing customer adds new load, the
proposed Economic Development rate may be applicable.
City Administrator noted that the recommendation is part of a
multi -prong approach to attract new customers. The City is not
abandoning its existing customers. The recommendation is
similar to incentives offered by other utilities.
It was moved by Maisano and seconded by Ybarra to approve
Resolution No. 2013-46. Motion carried, 5-0.
9. Request for Approval of Tyler Technologies (EDEN)
Amendment, Annual Support Renewal Payment.
Recommendation:
(1) Find that the approval requested is exempt under the
California Environmental Quality Act ("CEQA") in
accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an
effect on the environment; and
(2) Approve Amendment No. 8 for Tyler Technologies, Inc.
Annual Support Renewal for January 1, 2013, through
December 31, 2013, to ensure the uninterrupted support
of the EDEN Financial System, the City's main
accounting software, which is utilized by
approximately one hundred employees within several
departments at the City. Competitive bidding and
competitive selection is not required as this is a
contract for material and services available from only
one vendor as it is based upon proprietary software.
Director of Light & Power Department Carlos Fandino reported on
the EDEN System, explaining that it enhances collaboration
between departments. Approval of Amendment No. 8 is recommended
at an approximate cost of $49,000 which will be allocated to the
Information Technologies Department's budget.
It was moved by Davis and seconded by Martinez to approve the
Tyler Technologies (EDEN) Amendment No. 8. Motion carried, 5-0.
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10. Approval of Bicent Agreement, Form of Bid Guarantee for
Air Resource Board Cap -and Trade Auction Participation.
Recommendation:
(1) Find that the proposed form of bid guarantee is exempt
under the California Environmental Quality Act
("CEQA") in accordance with Section 15061 (b)(3), the
general rule that CEQA only applies to projects that
may have an effect on the environment; and
(2) Approve the letter agreement between the City and
Bicent that allows the City to purchase and transfer
sufficient allowances to Bicent in lieu of the City's
obligation under Section 18.3 of the Power Purchase
Tolling Agreement ("PPTA"); and
(3) Approve a letter of credit in the amount of $10
million to be used as a bid guarantee for the
participation in the Air Resource Board cap -and trade
auction.
Director of Light & Power Department Carlos Fandino reported
that in 2006, AB26, the Global Warming Solution Act, was
enacted; AB32 converted it into law. By the year 2020,
legislation requires California to reduce greenhouse gas
emissions to the levels measured in 1990.
The proposed agreement request two items; 1) approval of the
letter agreement with Bicent, current owners of the Malburg
Generating Station, and 2) approve the letter of credit.
Fandino explained that the letter of credit is needed to
participate in the Air Resource Board cap -and trade auction; $10
million is requested in order to maximize the allowance at the
most opportune time.
The City will be participating in four auctions per year.
Fandino noted that for everything that is purchased, the City
will receive credit towards greenhouse gas reduction. Fandino
reminded all that the pass -through cost to customers is the
difference between the renewable energy and "brown" energy.
Credits will help reduce the difference between the two, and
thus reduce the cost passed onto the customers. Projected
exposure for the year is estimated between $300-400 thousand.
It was moved by Martinez and seconded by Ybarra to approve the
Bicent Agreement, Form of Bid Guarantee for Air Resource Board
cap -and trade auction participation. Motion carried, 5-0.
ORDINANCES
1. A Resolution of Intention and Ordinance to approve an
amendment to the contract between the Board of
Administration of the California Public Employees'
Retirement System ("CalPERS") and the City Council City of
Vernon:
a. Resolution No. 2013-47 - A Resolution of the City
Council of the City of Vernon Declaring its
Intention to approve an Amendment to the Contract
between the Board of Administration of the
California Public Employees' Retirement System and
the City Council of the City of Vernon.
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b. Ordinance No. 1205 - An Uncodified Ordinance of the
City Council of the City of Vernon Approving and
Authorizing an Amendment to the Contract between the
City Council of the City of Vernon and the Board of
Administration of the Public Employees' Retirement
System. (first reading)
Recommendation:
(1) Find that approval of the proposed resolution of
intent and ordinance amending the contract between the
Board of Administration of the CalPERS and the City
Council City of Vernon is exempt under the California
Environmental Quality Act ("CEQA") in accordance with
Section 15061(b)(3), the general rule that CEQA only
applies to projects that may have an effect on the
environment; and
(2) Approve and adopt the attached Resolution of Intention
and related certification of compliance to amend the
contract between the Board of Administration of the
CalPERS and the City Council City of Vernon to add
benefit 20965, Credit for Unused Sick leave to the
safety plans; and
(3) Approve for first reading the proposed Ordinance to
amend the contract between the Board of Administration
of the CalPERS and the City Council City of Vernon to
add benefit 20965, Credit for Unused Sick leave to the
safety plans.
Human Resources Director Teresa McAllister reported that in June
19, 2012, the Memorandums of Understandings ("MOU") for safety
groups were approved by the City Council. On the same day, the
City Council also approved the recommendation to forego an
amendment to the CalPERS agreement for the unused sick leave
credit. When the City adopted its sick policy, an amendment to
the CalPERS agreement was not made for the unused sick leave
credit benefit. Based on an actuarial study Council supported
staffs recommendation to forego any amendment.
On December 10, 2012, and on March 5, 2013, the City was
notified by the safety groups that the City had failed to amend
the CalPERS agreement for said benefit as outlined in the MOUs.
The City has no recourse but to implement the benefit.
McAllister reported on the future annual cost of benefits as
required by law.
In response to Mayor Pro-Tem Davis' clarification request,
McAllister explained that upon retirement, the employee will
have the option of converting the unused sick time to years of
service. This is calculated through a CalPERS formula.
In response to Mayor McCormick, McAllister confirmed that there
is a cap on the sick leave for both MOUs.
Independent Reform Monitor John Van De Kamp noted that the MOUs
providing the benefit were approved on the same day the City
Council decided to not amend the CalPERS agreement to provide
said benefit.
City Administrator Mark Whitworth reported that no employee has
exercised the benefit. The City saves money by not providing
the option. At the time, it was an item in the MOUs that was
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April 16, 2013
intended to be removed. It was not, and because it is part of
the MOUs' language it needs to be acknowledged.
Steve L'Ecluse of Bandini Truck Terminal, Inc. opined that this
was a case of failed communication and sought clarification on
the fiscal impact of the recommendation.
Mayor McCormick directed McAllister to address L'Ecluse's
concerns after the meeting.
It was moved by McCormick and seconded by Maisano to approve
Resolution No. 2013-47 and the first reading of Ordinance No.
1205. Motion carried, 5-0.
2. Ordinance No. 1206 - An Ordinance of the City Council of
the City Vernon, California, adding Section 5.47 to
Article IV of Chapter 5 of the Code of the City of Vernon,
relating to Apportionment of the Special Parcel Tax on
Warehouses, Truck Terminals, Freight Terminals and Other
Distribution Facilities (first reading)
Recommendation:
(1) Find that approval of the proposed ordinance on the
apportionment of the warehouse parcel tax is exempt
under the California Environmental Quality Act
("CEQA") in accordance with Section 15061(b)(3), the
general rule that CEQA only applies to projects that
may have an effect on the environment; and
(2) Conduct the first reading of the ordinance adding
Section 5.47 to the Code of the City of Vernon,
relating to apportionment of the special parcel tax on
warehouses, truck terminals, freight terminals and
other distribution facilities in order to codify
existing administrative practices.
Director of Community Services and Water Department Kevin Wilson
explained that many of the parcels serve multiple purposes.
Since its enactment, staff has apportioned the special parcel
tax based on the actual use of the property; however, the
apportionment process is not governed by the Code.
Legal Counsel Mark Mandell explained that the tax, as written,
states that if any building on a parcel is subject to the tax,
then the entire parcel will be taxed. This is unfair and it is
not the City's intention. Staff's practice has been to take a
reasonable interpretation. The recommended Ordinance formalizes
the practice and interpretation.
In response to Councilmember Ybarra's inquiry on how it will
affect the tax payers, Mandell advised that it has no effect as
it is taking the current practice and placing it into written
law.
Peter Corselli of U.S. Growers Cold Storage stated that the
Ordinance did not include language addressing cold storage use
and its exemption from the tax. Corselli argued that the
Ordinance's original intent was to discourage dry storage
warehouses, but that the issue is that it also discourages large
utility users that may not use the entire parcel. He opined
that the proposed does not satisfy the original intent. He also
sought clarification on language that he opined was
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April 16, 2013
contradictory in the Ordinance. In response, Mandell explained
the language.
Corselli argued that the proposed ordinance deviants from its
intent to sell electricity, and opined that the language needs
to be further clarified. In response, Mandell advised that the
proposed is not a tax on the use or non use of electricity, but
on a specific parcel use.
It was confirmed for Councilmember Ybarra that the proposed
Ordinance will only place 17 writing the City's current
practice.
It was moved by Ybarra and seconded by Davis to approve the
first reading of Ordinance Igo. 1206. Motion carried, 5-0.
DISCUSSION AND POSSIBLE DIRECTIVE TO STAFF
1. Removed as previously reported during the changes to
agenda announcements.,
ORAL REPORTS
Police Chief Daniel Calleros reported on a theft of diesel fuel
that occurred on April 1, 2013 in the 3200 block of Bandini
Boulevard. The loss is estimated at about $3000. Calleros
noted that there was a similar incident recently and that it is
an issue in the region as other agencies have experienced
similar thefts. Detectives will be sharing information with
other agencies.
On April 10, 2013, a bobtail truck loaded with equipment tools
valued at $65,000 was reported stolen from the 2900 block of
Ross Street. This case was assigned to the cargo theft
taskforce. Following a lead, detectives were able to locate the
stolen truck and equipment in the City of Phelan. The
investigation is still ongoing for the perpetrators.
On May 4, 2012, members of the Farm Animal Rights Movement
("FARM"), will be conducting a demonstration at Framer John's
between 11:00 a.m. and 1:00 p.m. Three -hundred participants
are anticipated. The Department's Mobile Field Force will be
activated and assistance from surrounding law enforcement
agencies will be requested given the number of anticipated
attendees.
Calleros reported on the Department's recent participation in
the Baker to Vegas Challenge Cup, a 120 mile relay race that
begins in Baker and ends in Las Vegas. The Department teamed up
with the San Gabriel Police Department and received 3rd place in
its respective category.
Calleros advised that the Department is monitoring information
from the LA Joint Regional Intelligence Center and Joint
Terrorist Task Force concerning the bombing incident at the
Boston Marathon. Based on information provided to law
enforcement, there are no known direct threats involving Vernon
or the Los Angeles region. The Police Department has increased
patrols around the City's critical assets. Police staff will
continue to monitor information provided by regional taskforces
to ensure it has current information available to share with the
community if needed.
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Lieutenant Jerry Winegar reported vandalism on April 5, 2013,
that resulted in an arrest. Detectives witnessed three suspects
enter the rail roads and paint a mural. All three were
detained.
Mayor McCormick reported vandalism from Randolf to Fruitland
Avenue. City Administrator Mark Whitworth reported vandalism on
Santa Fe Avenue, northeast of Fruitland Avenue.
Interim Fire Chief David Kimes reported that there have been 81
service calls, three of which were fire incidents: a rubbish
fire handled by a single engine, a commercial fire which
required Los Angeles County assistance, and a vehicle fire which
was extinguished using a fire extinguisher.
The Fire Department responded to a hazardous materials incident
where an acetylene tank was leaking inside a building. The
building was evacuated, and the Hazmat unit was able to shut
down the leak.
On March 20, 2013, 102 pints of blood were collected for the
Children's Hospital of Los Angeles during the Blood Drive.
Kimes reported on the installation of the Smart Classroom at
Fire Station No. 1, which is a USAI Grant funded project which
provides training without having to leave the jurisdiction.
This will eliminate the cost of outside instructors and the cost
associated with sending staff out of the City.
Kimes announced that the Department is scheduled to start the
recruiting process for seven new Reserve Firefighters.
In 2012, two applicants qualified for a Fireworks Sales Permits:
the Vernon Police Officers Benefit Association and the Rio Hondo
Vernon Rotary Club. Both groups have qualified for applications
for the 2013 fireworks sales season for the 4th of July time -
period. Permits will be issued in May 2013.
Director of Community Services and Water Department Kevin Wilson
reported on sinking concrete on Atlantic Boulevard north of
Bandini Boulevard. Informal bids for the repair have been
received; estimated cost is $20,000. In order to mitigate any
further damage, the location will be addressed within the
upcoming weeks.
Wilson reported on communications with Caltrans regarding the
next phase of the pavement improvement project which is the
cause of the closure to the south bound 710 freeway entrance.
Mayor McCormick expressed his concerns over the traffic on
District Boulevard and recommended eliminating the U-turn during
construction. In response, Wilson opined that it would create a
problem for trucks and recommended that the U-turns continue to
be allowed.
Police Chief Daniel Calleros advised that the turn is restricted
during 3:00 p.m. to 5:00 p.m., but will continue monitoring the
situation. Wilson will attempt to request that the work be
shifted to weekend or night time hours.
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April 16, 2013
In response to Mayor Pro-Tem Davis, Wilson reported that the
project may take until the end of the year to complete.
Director of Finance William Fox reported that Capital Accounting
Partners, LLC had been selected to conduct the cost allocation
and fee study. They will be on -site meeting with the various
departments and collecting data within the coming weeks.
Fox announced that a Budget Study Session will be conducted on
May 7, May 22, and June 4, 2013, in conjunction with the City
Council meetings. After which, a public hearing will be
conducted for the approval of the City's budget.
Director of Light & Power Department Carlos Fandino reported
that on April 3, 2013, Exxon Mobile had a blown meter. Repairs
were made on the same day.
Fandino reported that the Malburg Generating Station will be
down for most of April. The Pipeline Inspection Gauges ("PIG")
testing will be conducted during this time.
Fandino reported that the Fruitland Project is in Phase 3. He
also reported on meetings with Farmer John's and F. Gavina &
Sons as potential gas service customers. Staff will be
presenting tariff language for a gas service incentive for new
customers to the City Council. Charlie's Pride was recently
installed with the gas service.
Director of Health and Environmental Control Department Leonard
Grossberg reported on the Exide Technologies ("Exide") incident.
He noted that when the news story was published in the Los
Angeles Times, it gave the impression that Vernon allowed this
to happen and was not addressing the situation. He clarified
that the City of Vernon Health & Environmental Control
Department has been working with the Department of Toxic
Substances Department (DTSC) for over two years on the Exide
issues.
Legal authority over the operating permit at Exide is solely the
responsibility of DTSC, and authority over the air emissions is
under the jurisdiction of the Air Quality Management District
("AQMD").
Staff is working with the Los Angeles Regional Water Control
Board to address the indirect off -site discharge of pollutants
from Exide in storm water run-off. Corrective actions sought by
AQMD and DTSC were processed expeditiously by the Community
Services Department by approving the construction permits, and
requesting that additional permit requirements be met after the
fact. Exide is working on compliance.
AQMD reports are available for review at the Health Department.
While the report of excessive arsenic emissions reported in the
news was of concern, it is important to note that the actual
levels reported from the Health Risk Assessment were based on a
model and not actual arsenic measurements. The residential risk
assessments are based on over 70 years of exposure at the same
levels, without ever leaving the area of exposure. The risk is
much less that what was estimated in the risk assessment.
Grossberg reported that the City has asked and received better
inter -agency dialog with AQMD in dealing with Exide. A public
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Regular City Council Meeting Minutes
April 16, 2013
health advisory will be issued, and a public meeting will also
be held in Vernon to inform residents and businesses alike of
the cancer risks due to arsenic emissions from the facility.
Human Resource Teresa McAllister reported on the Department's
limited availability due to training on the Human Resources
Management System. She announced the City wide hazmat training
scheduled for April 23, 2013.
McAllister announced that April 24, 2013, is Denim Day in
support of Sexual Assault Awareness Month. Interviews for the
firm that is to perform the classification and compensation
study will be conducted.
Several new employee policies, many of which are part of the
reform efforts, will be presented to City Council for approval
at an upcoming meeting.
Assistant to the City Administrator Alex Kung announced the
Oversight Board of the Successor Agency to the Redevelopment
Agency meeting on May 2, 2013, and the Successor Agency to the
Redevelopment Agency meeting on May 7, 2013.
Kung reported on a demand letter from the Department of Finance
("DOF"), for funds the City withheld for bond payments. After
Counsel discussion, the money was paid to the DOF. Additional
funds will be requested on the Recognized Payment Obligation
Schedule IV to compensate.
Pursuant to Independent Reform Monitor John Van De Kamp's
recommendation, and under the suggestion of Peter Corselli to
conduct the work in-house, City Administrator Mark Whitworth
reported on the Council Chamber improvements. Employees that
worked on the project will be formally thanked at the next
meeting.
Whitworth reported on the passing of the taxes by the voters
with 830 or greater approval. The approval of the Measures will
address the budget deficit. Department Heads have been tasked
to work on the respective budgets. Draft budgets will be
presented at a public meeting in a three-part series to address
any questions or concerns. Copies of the draft budget will be
made available to the Chamber and businesses who request a copy.
Whitworth reported on a presentation made to Huntington Park on
the City's intention of $500,000 contribution towards the Salt
Lake Park sports complex as part of the good neighbor policy.
He noted that Senator Kevin De Leon and Senator Ricardo Lara are
in support. Funding will be provided in increments, and will be
included in next year's budget.
Whitworth announced the Chamber of Commerce's Installation and
Awards Luncheon on April 24, 2013. He advised that he will be
attending the League of Cities Conference in Sacramento April 23
and 24, 2013, and to address some of the CalPERS issues. He
reported on Senator Lara's visit to Vernon businesses.
Additional visits are planned for later in the year.
Whitworth announced that the first round of interviews for the
Fire Chief position has been completed. Candidates have been
reduced to five. City Council interviews will be scheduled for
final selection.
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April 16, 2013
On April 29, 2013, Administration will hold informational
meetings for employees.
The Vernon Housing Commission met on March 27, 2013, and
selected Solari Enterprises, Inc. ("Solari") as the third party
management firm for City owned housing. Terms of the agreement
are being vetted. He noted that Solari will also be the
property management group for the new housing project on 52nd
Drive. Whitworth reported on the housing stock.
Whitworth thanked South Coast Air Quality Management District
("AQMD") representative Derrick Alatorre. He reported on
meetings with AQMD as the City is also concerned with the events
at Exide Technologies.
He congratulated McCormick on his election as Mayor. He noted
that any of the Council members have the opportunity to become
Mayor. He thanked former Mayor Davis for his service.
Councilmember Ybarra requested an update on the business license
tax concerns for catering trucks. In response, Finance Director
William Fox reported that the issue will be addressed as part of
the fee allocation study.
Councilmember Maisano thanked Juan Arellano and Steve Hartsfield
of the Community Services Department for their response on an
issue he had at his residence. He suggested that the department
look into on -call professional pluming services should the
budget allow.
Mayor Pro-Tem Davis thanked the residents for his reelection and
their support of the three Measures. He stated that Vernon will
become a model City.
Mayor McCormick thanked the Council for their support on him
becoming Mayor. He announced the Boy Scouts Pancake and French
Toast Breakfast on May 18, 2013.
CLOSED SESSION
Interim City Clerk Dana Reed announced that Item No. 1 of the
closed session pertains to the assessment of payroll taxes for
past years.
At 11:30 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 - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to subdivision
(b) of Government Code Section 54956.9
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, and Teamsters Local 911
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Regular City Council Meeting Minutes
April 16, 2013
At 11:51 a.m. it was moved by Davis and seconded by Maisano,
that the City Council exit closed session. Motion carried, 5-0.
City Attorney Nicholas Rodriguez announced that there was no
reportable action for Item No. 1 of the closed session. Human
Resources Director Teresa McAllister was designated as the
negotiator for both employee organizations as it pertains to
Item No. 2 of the closed session.
At 11:51 a.m., it was moved by Davis and seconded by Martinez,
that the meeting be adjourned. Motion carried, 5-0.
Interim City Clerk
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Mayor
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