Loading...
20130618 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, JUNE 18, 2013, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Maisano, Ybarra, Martinez MEMBERS ABSENT: None The meeting of the City Council was called to order at 9:02 a.m. by Mayor McCormick. Mayor Pro-Tem Davis led the flag salute. CHANGES TO THE AGENDA Interim City Clerk Dana Reed announced that there are no changes to the agenda. However, he advised that there have been changes to the Resolutions associated with New Business item nos. 3 through 6. There is also a revision to the staff report for the proposed budget approval. PUBLIC COMMENT Interim City Clerk,Dana Reed announced that this was the time allotted for public comment. Mayor McCormick inquired whether anyone in the audience wished to address the City Council. Marisa Olguin, President of the Vernon Chamber of Commerce, applauded the retiring Police and Fire personnel for their many years of service. She thanked the Fire and Police Chiefs and former Fire Chief Mark Whitworth for their work in building and maintaining good public safety departments. Independent Reform Monitor John Van de Kamp clarified that he has not foreclosed the consideration of cost of living adjustments. He noted the recommendation to equalize the Councilmembers' salaries, and recommended that as part of the classification study currently underway by the Human Resources Department, the Mayor's position be included. Although the Mayor does not have a strong management roll, it may be entitled to more compensation. At the conclusion of the study a recommendation can be presented for Council consideration. PRESENTATIONS 1. Service Pin Awards The City Council recognized Battalion Chief David Lazar and Deputy City Clerk Ana Barcia for their various years of service. Additionally the City Council recognized Fire Captain David Moore, Fire Captain Steve Ruffoni, and Police Officer Jose Reyna for their many years of service as they could not attend the meeting. 2. The City Council acknowledged and presented proclamations to twelve (12) retiring safety employees in recognition of their dedicated services to the City of Vernon. a. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Inez Aragon for Her Many Years of Service to the City of Vernon Regular City Council Meeting Minutes June 18, 2013 b. A Proclamation of the Mayor and the City Council of the City of Vernon Commending John Doersam for His Many Years of Service to the City of Vernon c. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Rex Hill for His Many Years of Service to the City of Vernon d. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Jed Hulsey for His Many Years of Service to the City of Vernon e. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Bradley Miller for His Many Years of Service to the City of Vernon f. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Francesco Pirello for His Many Years of Service to the City of Vernon g. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Michael Roche for His Many Years of Service to the City of Vernon h. A Proclamation of the Mayor and the City Council of the City of Vernon Commending James Rodino for His Many Years of Service to the City of Vernon i. A Proclamation of the Mayor and the City Council of the City of Vernon Commending David Shea for His Many Years of Service to the City of Vernon j. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Francisco Tostado for His Many Years of Service to the City of Vernon k. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Paul Woida for His Many Years of Service to the City of Vernon 1. A Proclamation of the Mayor and the City Council of the City of Vernon Commending Anthony Zack for His Many Years of Service to the City f Vernon PUBLIC HEARINGS 1. Consideration of a variance for Commercial Sand Blast Company Inc., located at 2678 26th Street: At 9:17 a.m., Mayor McCormick opened the public hearing for the consideration of a variance for Commercial Sand Blast Company Inc. Director of Community Services and Water Kevin Wilson explained the request for a variance on unobstructed truck maneuvering. He reported that a portion of the lot sits on the Los Angeles River and that the usable portion is trapezoidal in shape. Commercial Sand Blast Company Inc. ("Commercial Sand") is proposing to remove and reconstruct an old building with additional square footage. As such, they are required to meet all code requirements. Wilson reported that Commercial Sand Page 2 of 22 Regular City Council Meeting Minutes June 18, 2013 meets all other requirements with the exception of unobstructed truck maneuvering. It would not be practical to mandate that Commercial Sand meet this requirement as doing so would require additional demolition. Wilson reported on the various findings and reported on the conditions of approval for the variance. Bob Gutterman of Crown Polly recommended that the lot be slit and that the portion of the lot in the Los Angeles River either be dedicated to the County or State. At 9:25 a.m., Mayor McCormick closed the public hearing in order for Council to consider approval of Resolution No. 2013-54. Resolution No. 2013-54 - A Resolution of the City Council of the City of Vernon Approving a Variance to Commercial Sand Blast Company, Inc. from Section 26.4.1-6(f) of the Vernon City Code, for the property located at 2678 26th Street. Recommendation: (1) Find the variance is categorically exempt under the California Environmental Quality Act ("CEQA") in accordance with CEQA Guidelines Section 15302 (Replacement or Reconstruction), and 15061(b)(3), the general rule that projects are not subject to CEQA if it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment because the proposed project will involve the replacement of an existing building with a building that is only 1,832 square feet larger; and (2) Adopt a resolution approving a variance from Section 26.5.1-6(f) of the Comprehensive Zoning Ordinance, unobstructed truck maneuvering requirement, subject to the recommended conditions of approval, to Commercial Sand Blast Company, Inc., for the property located at 2678 26th Street. It was moved.by Ybarra and seconded by Davis to approve Resolution No. 2013-54. Motion carried, 5-0. 2. Consider the adoption of the proposed budget for the City of Vernon for fiscal year 2013-2014: Director of Finance William Fox reported that the proposed budget is the gross number that is reported to the County and includes interdepartmental transfers. He advised that approximately $311.2 million is the true number. Fox clarified that the staff report had incorrectly stated that the budget had decreased approximately $13 million from the previous year, when it has increased by the same amount. Fox further clarified that the increase is not due to an increase in descretionary expenses but rather costs outside of the City's control or necessary one-time expenses. The expenses are off- set by a reduction of approximately $4.4 million, as all Departments have decreased their operating expenses. Fox presented on updates to revenues and expenses since the initial budget study sessions. He further presented on the expenses and revenue broken down by the various funds. Page 3 of 22 Regular City Council Meeting Minutes June 18, 2013 At 9:53 a.m. Mayor McCormick opened the public hearing for the consideration of the proposed budget for fiscal year 2013-2014. Marisa Olguin, President of the Vernon Chamber of Commerce, thanked the Finance Director for correcting the information on the staff report as it had been misleading. However, she stated that the bottom line is that the budget had increased from the previous fiscal year. Olguin urged the Council to review the increases in the overall budget. Olguin is pleased to see the $2 million budgeted for the Community Benefit Fund and the reduction to the Police Department Budget. She questioned whether more could be reduced in the Fire Department as there was not a significant reduction to said Department. Olguin also questioned the $700,000 increase in expenses to the Human Resources Department and inquired whether it was merited. More time to review the information presented would have been preferred. Olguin opined that $2-4 million could still be eliminated from the budget. The Chamber remains very engaged; the business community has a lot to offer and desires to work with the City Council on a long-term recovery plan. She recommends that the Council consider an additional $2-4 million budget reduction. Dave Gardetta of Baker Commodities recalled Independent Reform Monitor John Van de Kamp's inquiry at the previous Council meeting regarding the Fire Department's productivity reduction over the last six month. He sought clarification on the difference. Fire Chief Michael Wilson reported on an audit of the last six months. He advised that during the transition of retiring staff the January reporting had not been conducted. The additional reporting has been captured in the recent Activity Report. Former Fire Chief and current City Administrator Mark Whitworth further clarified that that there has been a staff reduction in the Fire Department from seven personnel down to two. At 10:04 a.m. the public hearing was closed to consider the approval of Resolution No. 2013-55 by the City Council. Resolution No. 2013-55 - A Resolution of the City Council of the City of Vernon Approving a Budget for the Fiscal Year 2013-2014. Recommendation: (1) Find that adoption of the proposed resolution is exempt from 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) Adopt the resolution approving the citywide balanced budget for fiscal year 2013-2014, with estimated budgeted revenues of $336,626,456 and expenditures of $336,626,456. It was moved by Davis and seconded by Maisano to approve Resolution No. 2013-55. Motion carried, 5-0. Page 4 of 22 Regular City Council Meeting Minutes June 18, 2013 3. Consideration of an ordinance to extend the moratorium: Director of Community Services and Water Kevin Wilson reported on the previously adopted 45-Day Moratorium. He advised that he's had several customer requests as a means to supplement their electricity use. Wilson advised that there are two essential risks if the moratorium is not extended. First, there is a safety concern as there is an exposure to fire if the facility is not properly maintained. Secondly, there is a concern on the effects to Light and Power's operations as a reduction in load will cause an increase in the electric rates. Wilson highlighted someone of the steps staff has taken as presented in the written report. The work, however, is not complete. Staff is recommending that the moratorium be extended for a total of two years from the first adoption date. If no action is taken, the moratorium will expire on June 21, 2013. Wilson noted that Council could opt to prematurely end the moratorium once the study and the rules have been established. In response to Councilmember Ybarra, Wilson advised that he anticipates having zoning previsions out for public review by the fall and regulations to be established in approximately one year. Light and Power will need several months to conduct their study. It was confirmed for Mayor Pro-Tem Davis that the moratorium cannot be extended or reinstated beyond the two years. At 10:13 a.m. Mayor McCormick opened up the public hearing for the consideration of an ordinance extending the moratorium. Peter Corselli of U.S. Cold Storage Growers advised that companies are considering private generating facilities because costs from the provider are too high. He argued that the concern for safety is no different from that of a boiler or other similar equipment. Furthermore, any new facility would be subject to Air Quality Management District requirements. The impact to the Light and Power Department is apparent but customers have been impacted by increasing electric rates. He opined that the moratorium is just stalling the inevitable and that it might cause some businesses to leave Vernon. Bob Gutterman of Crown Polly recommended that if the moratorium continues it should specify the size of the facilities that are not permitted as there are a lot of different types. In his research, Gutterman found that in California and other locations, projects below one megawatt are encouraged. He encouraged Council to consider similar parameters. Dave Gardetta of Baker Commodities Inc. warned that there is a sector of industrial growth that is affected by the moratorium; specifically, the conversion of waste to energy. He explained that there are thirteen landfills in Los Angeles County that will be filled and no longer available. Conversion facilities use electricity, not drain it. Companies that were considering Vernon for such a facility have now been placed on halt. Gardetta requested that the business community be updated on the project. Page 5 of 22 Regular City Council Meeting Minutes June 18, 2013 At 10:20 a.m. the public hearing on the moratorium extension was closed. In response to the public comment, Director of Community Services and Water Kevin Wilson advised that one megawatt is not an issue; however, if there are several facilities interested, then it becomes an issue. He would rather complete the studies before making further recommendations. He is not opposed to working with the community and conducting workshops. Director of Light and Power Carlos Fandino advised that the department needs time to review and determine how it will address the issue as it does impact Light and Power in several different ways. He will be working with Wilson on the project and keeping the businesses appraised through the Advisory Committee on Electric Rates and City Council meetings. Ordinance No. 1211 - An Uncodified Urgency Ordinance of the City Council of the City of Vernon to Extend the Existing 45 Day Moratorium on the Establishment of New Private Electricity Generating Facilities, Power Plants and Cogeneration Facilities, Excepting Solar Power Facilities, for an Additional One Year, 10 Months and 15 Days (first and only reading) Recommendation: (1) Find the moratorium to be categorically exempt under the California Environmental Quality Act ("CEQA") Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, because the moratorium merely maintains a status quo; and (2) Adopt an urgency ordinance, according to the provisions set forth in the California Government Code, to extend the existing 45 day moratorium for an additional 1 year, 10 months, and 15 days, to prohibit the authorization of any subdivision, use permit, variance, building, permit, grading permit, or any other applicable entitlement for use by any generating facility, power plant, or cogeneration facility (excluding solar power facilities). A vote of 4 City Council members (a 4/5 vote) is required to adopt this as an urgency ordinance because of the requirements of California Government Code, Section 65858. Under the provisions of the California Government Code, as they apply to a Charter City, the urgency ordinance would be immediately effective, and no second reading is required. The proposed extension to the urgency ordinance would expire automatically on May 6, 2015. It was moved by Ybarra and seconded by Maisano to approve and adopt Ordinance No. 1211. A roll call vote was taken: - Councilmember Martinez, yes - Councilmember Ybarra, yes - Councilmember Maisano, yes - Mayor Pro Tem Davis, yes - Mayor McCormick, yes Motion carried, 5-0. Page 6 of 22 Regular City Council Meeting Minutes June 18, 2013 CONSENT CALENDAR It was moved by Maisano and seconded by Davis to approve the matters listed on the Consent Calendar as recommended. Motion carried, 5-0. Claims Against the City (to be received and filed) 1. None. Minutes Approval 2. Minutes of the Special and Regular City Council Meeting held June 4, 2013, to be received and filed. Warrant Registers 3. Ratification of the following warrant registers to record the following voided checks: a. City Warrant Register No. 1366 to record voided Check No. 338957 in the amount of $170.00; and b. City Warrant Register No. 1369 to record voided Check No. 339397 in the amount of $945.00. 4. Approval of City Payroll Warrant Register No. 684, totaling $3,750,462.75, which covers the period of April 7, through May 18, 2013, and consists of the following: a. Ratification of direct deposits, checks and taxes totaling $2,713,746.63; and b. Ratification of checks and electronic fund transfers totaling $1,036,716.12. 5. Approval of City Warrant Register No. 1381, totaling $1,041,323.73, which covers the period of May 28, through June 10, 2013, and consists of the following: c. Ratification of wire transfers totaling $507,707.87; and d. Ratification of the issuance of early checks totaling $207,909.03; and e. Authorization to issue pending checks totaling $325,706.83. 6. Approval of Light & Power Warrant Register No. 346, totaling $5,380,312.84, which covers the period of May 28, through June 10, 2013, and consists of the following: a. Ratification of wire transfers totaling $5,333,863.78; and b. Ratification of the issuance of early checks totaling $13,408.56; and c. Authorization to issue pending checks totaling $33,040.50. 7. Approval of Gas Warrant Register No. 134, totaling $368,078.69, which covers the period of May 28, through June 10, 2013, and consists of the following: a. Ratification of wire transfers totaling $357,356.99; and Page 7 of 22 Regular City Council Meeting Minutes June 18, 2013 b. Ratification of the issuance of early checks totaling $9,603.19; and c. Authorization to issue pending checks totaling $1,118.51. City Administration Department 8. Councilmember attendance report on the California Contract Cities Association 54th Annual Municipal Seminar held May 16 through May 18, 2013, to be received and filed. 9. Resolution No. 2013-56 - A Resolution of the City Council of the City of Vernon Amending Resolution No. 2011-87, to Equalize the Salaries of City Council Members and repealing all resolutions, or portions thereof, in conflict with that objective. Recommendation: (1) Find that adoption of the resolution proposed is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section (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 to amend Resolution No. 2011-87 to equalize the salaries of all the City Council members at the $24,996 rate effective July 1, 2013. Community Services and Water Department 10. Building Department Report for the month of May 2013, to be received and filed. 11. General Plan Annual Progress Report for 2012. Recommendation: (1) Find that the 2012 General Plan Annual Progress Report is categorically exempt under the California Environmental Quality Act ("CEQA") in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Receive and file the 2012 General Plan Annual progress Report. Health and Environmental Control Department 12. May 2013 Monthly Report, to be received and filed. Fire Department 13. Activity Report for the period of May 16, through May 31, 2013, to be received and filed. Police Department 14. Activity Log and Statistical Summary of Arrest and Activities for the period of May 16, through May 31, 2013, to be received and filed. 15. Intra-Agency Agreement to share Automatic License Plate Recognition data. Page 8 of 22 Regular City Council Meeting Minutes June 18, 2013 Recommendation: (1) Find that the proposed execution of an agreement with the Los Angeles County Sheriff's Department and other law enforcement agencies to share Automatic License (2) Plate Recognition data 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 Authorize the Police Chief to execute an agreement with the Los Angeles County Sheriff's Department and other law enforcement agencies, on behalf of the City of Vernon, for the purpose of sharing Automatic License Plate Recognition data for investigative purposes. NEW BUSINESS City Administration Department 1. One -Year Consulting Services Agreement with Mark Fabiani, LLC for Strategic Consulting Services on City of Vernon Government Relations, Issues Management, Renewable Energy Projects, and Retention and Expansion of Utility Customer Base. Recommendation: (1) Find that approval of the proposed agreement is exempt from 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) Authorize the City Administrator to enter into a consulting services agreement with Mark Fabiani LLC, in substantially the same form as submitted, for a term of one year, June 1, 2013 through May 31, 2014, at a not to exceed cost of $200,000, for strategic consulting and management services on City of Vernon government relations, issues management, renewable energy projects, and retention and expansion of utility customer base. Competitive bidding is not required for this professional services contract pursuant to Section 2.17.12(A)(10) of the Vernon Municipal Code. It is requested that the City Council grant an exemption from the competitive selection process, pursuant to Section 2.17.12(B)(2) of the Vernon Municipal Code, based upon a determination that the best interests of the city are served by a direct award of the contract without a competitive selection process. , City Administrator Mark Whitworth explained that the services have been identified in order to maintain a greater level of transparency. The monetary cost has been broken out from the Mercury Public Affairs (`Mercury"). Originally, the Mercury agreement was for a cost not to exceed $400,000 but was reintroduced at a cost not to exceed $200,000. The Mark Fabiani, LLC agreement too has a cost not to exceed $200,000. Whitworth explained that Chris Lahaen will be working with Fabiani, and are integral parts of the reform efforts. Page 9 of 22 Regular City Council Meeting Minutes June 18, 2013 It was moved by Davis and seconded by Martinez to authorize the one-year consulting service agreement with Mark Fabiani, LLC. Motion carried, 5-0. 2. Resolution No. 2013-57 - A Resolution of the City Council of the City of Vernon Fixing the Compensation, Costs and Benefits of its Employees Effective July 1, 2013, and repealing all resolutions in conflict therewith. Recommendation: (1) Find that approval of the proposed resolution adopting the Personnel and Salary Resolution effective July 1, 2013 is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 150G1(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve and adopt a citywide Personnel and Salary resolution effective July 1, 2013 to include the following changes from the Personnel Resolution (Resolution No. 2012-115), including related amendments, adopted for fiscal year 2012-2013: • Amend Salary Schedule XVI for the Police Department to reflect a 3% salary increase for the Police Chief and classifications represented by the Vernon Police Officers' Benefit Association ("VPOBA") and Vernon Police Management Association ("VPMA"). • Amend Salary Schedule VIII for the Fire Department to reflect a 3% salary increase for the Fire Chief and classifications represented by the Vernon Firemen's Association ("VFA") and Vernon Fire Management Association ("VFMA"). • Amend Salary Schedule XI for the Human Resources Department to add the classification of Senior Human Resources Analyst. • Amend Salary Schedule V for the City Council Department to reflect the reduced salary for all Council members pursuant to the good governance reforms and contingent upon adoption of the proposed resolution on the June 18, 2013 agenda amending Resolution No. 2011-87 to enact said reductions effective July 1, 2013, and to change the classification from "councilman" to "Council member." The proposed resolution shall not affect or alter the existing compensation of any other officer or employee not specifically set forth herein. City Administrator Mark Whitworth advised that the recommendation is part of normal business and addresses all the recent changes. He noted that as part of a reform measure the City Council is not receiving medical benefits after retirement. He recommends that the City Council receive the same medical benefits as other retiring employees, and amend provision 15.2(a) of the resolution to state the same. Interim City Clerk Dana Reed recommended agendizing the amendment for the next City Council meeting and approving the resolution as presented. Page 10 of 22 Regular City Council Meeting Minutes June 18, 2013 It was moved by Davis and seconded by McCormick to approve Resolution No. 2013-57 as recommended. Motion carried, 5-0. Resolution Nos. 2013-58 and 2013-59 were addressed at the same time. 3. Resolution No. 2013-58 - A Resolution of the City Council of the City of Vernon determining the Public Safety Special Parcel Tax for Fiscal Year 2013-2014. Recommendation: (1) Find that adoption of the proposed resolution is exempt from 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) Adopt a resolution approving the amounts of the Public Safety Parcel Tax for fiscal year 2013-2014 calculated at a rate of $.03 per square foot and submitting the public safety parcel tax list to the Los Angeles County Auditor Controller's Office. 4. Resolution No. of the City of 'Execution of a Assessments by Angeles County Parcel Tax). 2013-59 - A Resolution of the City Council Vernon Approving and Authorizing the Agreement for Billing of Direct and between the City of Vernon and the Los Auditor -Controller (Public Safety Special Recommendation: (1) Find that approval of the proposed agreement is exempt from 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) Authorize the City Administrator to enter into a direct assessment billing agreement for with Los Angeles County Auditor -Controller, in substantially the form submitted, for the collection and distribution for the Public Safety Special Parcel tax for fiscal year 2013-2014. Competitive bidding or competitive selection is not required because the services are provided by a governmental entity, and because that entity is the sole source of the services provided. Assistant to City Administrator Alex Kung explained that the resolutions are to implement the property tax that was approved by the Vernon residents during the April 9, 2013, Election as Measure L. Kung reported that $1.9 million in revenues is estimated. The billing agreement with the County is necessary and minimal, approximately $250 per year. It was moved by Ybarra and seconded by Maisano to approve Resolution No. 2013-58 and Resolution No. 2013-59. Motion carried, 5-0. Resolution Nos. 2013-60 and 2013-61 were addressed at the same time. Page 11 of 22 Regular City Council Meeting Minutes June 18, 2013 5. Resolution No. 2013-60 - A Resolution of the City Council of the City of Vernon determining the Special Parcel Tax Levied pursuant to Section 5.45 of the Municipal Code for Fiscal Year 2013-2014. Recommendation: (1) Find that adoption of the proposed resolution is exempt from 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) Adopt a resolution setting the Warehouse Parcel Tax rate at $29.09 per 100 square feet for fiscal year 2013-2014 and submitting the special parcel tax list to the Los Angeles County Auditor Controller's Office. 6. Resolution No. 2013-61 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of an Agreement for Billing of Direct Assessments by and between the City of Vernon and the Los Angeles County Auditor -Controller (Special Parcel Tax Levied pursuant to Section 5.45 of the Municipal Code). Recommendation: (1) Find that approval of the proposed agreement is exempt from 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) Authorize the City Administrator to enter into a direct assessments billing agreement for with Los Angeles County Auditor -Controller, in substantially the form submitted, for the collection and distribution of the Warehouse Special Parcel tax for fiscal year 2013-2014. Competitive bidding or competitive selection is not required because the services are provided by a governmental entity, and because that entity is the sole source of the services provided. Assistant to City Administrator Alex Kung explained that the warehouse parcel tax has existed since 1998. The Community Services Department conducted the calculation for the consumer price index ("CPI") assessment and determined an increase. The warehouse special parcel tax is to increase from $0.2872 to $0.2909; $9.9 million is estimated in revenues. A billing agreement with the County for this tax is also necessary. It was moved by Maisano and seconded by Martinez to approve Resolution No. 2013-60 and Resolution No. 2013-61. Motion carried, 5-0. Community Services and Water Department 7. Resolution No. of the City of Execution of a Vernon and Meta 2013-62 - A Resolution of the City Council Vernon Approving and Authorizing the Loan Agreement by and between the City Housing Corporation. Recommendation: (1) Find that approval of the Loan Agreement is exempt under the California Quality act ("CEQA") in of Page 12 of 22 Regular City Council Meeting Minutes June 18, 2013 accordance with.Section 15061(b)(3), the general rule that CEQA only applies to projects that may have effect on the environment; and (2) Find that there is a public purpose in entering into a Loan Agreement for the proposed housing development at 4675 52nd Street and that the City is not otherwise prohibited from entering into the Loan Agreement by Article 34, of the California Constitution; and (3) Approve the Loan Agreement between the City of Vernon and META Housing Corporation. Director of Community Services and Water Kevin Wilson deferred the item in order to get Consultant John Goetz on the phone for the deliberation. Finance Department 8. Property and Casualty Insurance Placements for Fiscal Year 2013-14. Recommendation: (1) Find that allowing Aon Insurance Services, the City's insurance broker, to obtain insurance coverage on behalf of the City is not a "project" within the meaning of the California Environmental Quality Act ("CEQA") and is exempt pursuant to Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Authorize the City Administrator to bind the City for the annual insurance coverage on or before the July 1, 2013 renewal date, provided the total annual premiums to be paid shall not exceed $895,661. This renewal is for excess liability insurance, property, excess workers' compensation, crime, pollution liability, and environmental site liability coverage. Finance Director William Fox advised that the annual insurance renewal coincides with the fiscal year. He reported on the procurement of new insurance broker, AON Insurance, through request for proposals. AON is reviewing the appropriateness of insurance coverage and limits and is still finalizing bids. The request is for approval of a dollar amount and contains a 100 contingency as the insurance policies are going through a more thorough review with the new Risk Manager. It was moved by Davis and seconded by Ybarra to authorize the binding of annual insurance coverage with a cost not to exceed $895,661. Motion carried, 5-0. Health and Environmental Control Department 9. Resolution No. 2013-63 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of an Application for the 2013/2014 Used Oil Payment Program. Recommendation: (1) Find that approval of the forms of contract and of related documents are exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only Page 13 of 22 Regular City Council Meeting Minutes June 18, 2013 applies to projects that may have any effect on the environment; and (2) Approve the resolution approving the execution of an application for the 2013/2014 Used Oil Payment Program and authorizing the Director of Health and Environmental Control to (a) submit the Application and Certification to the Department of Resources Recycling and Recovery "CalRecycle" for Used Oil Grant Funds for fiscal year 2013/2014 ("OPP4"); (b) execute any and all documents, including but not limited to, applications and agreements necessary for the purpose of securing funds; and (c) to receive and spend the funds for the Used Oil Payment Program. Director of Health and Environmental Control Leonard Grossberg reported that the since 1997 the City Council has approved the request. Funds of approximately $5,000 are used for education and distribution of storm water information. It was moved by Maisano and seconded by Ybarra to approve Resolution No. 2013-63. Motion carried, 5-0. Light and Power Department 10. Request for approval of an extension of the Matheson Tri- Gas Interim Interruptible Service Rate Agreement. 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) Authorize the City Administrator to approve an extension of the Interim Interruptible Service Rate Agreement with Matheson Tri-Gas to June 30, 2014. The existing customer agreement, pursuant to Resolution Nos. 2012-166 and 2012-60, will expire on June 30, 2013. Because a permanent rate adjustment will not be feasible until a rate design study is completed, staff recommends a one-year extension (through fiscal year 2014). Director of Light and Power Carlos Fandino reported that Matheson Tri-Gas is the utility's largest customer. Its load is subject to an interruptible rate. Under the original agreement, the City committed to conduct a study, the extension will allow time for the City to complete the study. The fiscal impact is reflected in the budget. It was moved by Ybarra and seconded by Davis to approve the one- year extension of the Matheson Tri-Gas Interim Interruptible Service Rate Agreement. Motion carried, 5-0. 11. Resolution No. 2013-64 - A Resolution of the City Council of the City of Vernon Amending Natural Gas Rate Schedule Nos. G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation) and Rules for Gas Service, for Gas Distributed and Supplied by the City within its boundaries. Page 14 of 22 Regular City Council Meeting Minutes June 18, 2013 Recommendation: (1) Find that approval is, (a) categorically exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section 15301(b), because this approval will merely lead to the possible construction of additional laterals and related meters to transport gas, and such construction is, at most, a negligible expansion of the existing facilities of the city's natural gas utility; and (b) statutorily exempt pursuant to CEQA Guidelines Section 15273, because the restructuring of the connection charge offsets to allow the city to continue to meet its operating expenses and to obtain the funds for capital projects to maintain service within existing service areas; and (2) Approve the resolution to thereby, (a) amend the gas tariffs and rules listed below; (b) authorize the City Administrator to accept licenses and easements to further the purposes of Rule 14, entitled "Service Connections and Facilities on Customer's Premises"; and (c) find the proposed actions comply with Proposition 26 for the reasons stated in the Resolution. The proposed amendments provide additional incentives to prospective gas customers by increasing the Light & Power Department contribution to gas customer connection costs, thereby providing long-term benefits for customers and the Department. The amendments also further regulate where meters may be installed. Changes are being requested to the following City documents: a. Tariff G-1 Residential Gas b. Tariff G-2 Small Commercial Gas C. Tariff G-3 Large Commercial Gas d. Rule 14 of the "Rules for Gas Service" Director of Light and Power Carlos Fandino advised that the recommendation benefits all by increasing the number of users in that there will be a shared fix cost. The proposal will offset the connection cost for new customers. Greg Longstreet of Farmer John announced that the businesses are in favor of the recommendation. It is a sound and solid plan and will attract more users. Mayor McCormick recommended that the new housing unit project use the Vernon gas system. It was moved by Davis and seconded by Maisano to approve Resolution No. 2013-64. Motion carried, 5-0. The following was revisited: 7. Resolution No. 2013-62 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of a Loan Agreement by and between the City of Vernon and Meta Housing Corporation. Recommendation: (1) Find that approval of the Loan Agreement is exempt under the California Quality act ("CEQA") in accordance with Section 15061(b)(3), the general rule Page 15 of 22 Regular City Council Meeting Minutes June 18, 2013 that CEQA only applies to projects that may have effect on the environment; and (2) Find that there is a public purpose in entering into a Loan Agreement for the proposed housing development at 4675 52nd Street and that the City is not otherwise Prohibited from entering into the Loan Agreement by Article 34, of the California Constitution; and (3) Approve the Loan Agreement between the City of Vernon and META Housing Corporation. Director of Community Services and Water Kevin Wilson report that one of the key reforms was to double the Vernon population; as a result, a development agreement with Meta Housing Corporation ("Meta") was approved. Wilson reported that the project did not score high enough in the first application round for tax credits. He explained that in order to rank high enough, financial assistance from the City is necessary. Initially the City's contribution was limited to just the land, but without financial assistance the project is not viable. A loan from the City will be necessary for the second application cycle. Meta conducted a study on competing projects, and in order to surpass their score, a loan of $650,000 is requested. Wilson cautioned that this does not mean that other projects can't score higher in the next round. Wilson advised that the loan is for 65 years with a 30-o rate payable from the net profits of the project. Additionally, Meta is required to apply for all other applicable loaned programs, the amount of which is to be reduced from the City's loan. Other programs also include utility rebates. Wilson explained that the loan has a $150,000 immediate repayment clause for professional service expenses made by the City. The allocation of the tax credits is a critical component -of the housing project. The loan agreement costs have been captured in the budget. It was moved by Ybarra and seconded by Maisano to approve Resolution No. 2013-62. Motion carried, 5-0. ORDINANCES 1. Ordinance No. 1212 - An Ordinance of the City Council of the City Vernon, California, adding Section 2.1.1, to Article I of Chapter 2 of the Code of the City of Vernon, relating to the Rules of Order for the Conduct of Council Proceedings. (first reading) Recommendation: (1) Find that approval of the Ordinance adopting Rosenberg's Rules of Order 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) Hold first reading of an Ordinance that will select Rosenberg's Rules of Order as the rules of order for the conduct of Council proceedings as well as the proceedings of all City Boards and Commissions. Page 16 of 22 Regular City Council Meeting Minutes June 18, 2013 Interim City Clerk Dana Reed reported that the City Charter requires that the rules of order be set by ordinance. The proposed rules are simple and were designed for public boards such as these. He noted that there are few differences between the proposed and Robert's Rules of Order. It was moved by Davis and seconded by Martinez to approve the first reading of Ordinance No. 1212. Motion carried, 5-0. DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF 1. Status of Staff's proposed draft ordinance on Low Impact Development requirements consistent with the Los Angeles Region's Municipal Separate Storm Sewer System Permit. Recommendation: (1) Find that the receiving and commenting on a report is categorically exempt under the California Environmental Quality Act ("CEQA") in accordance with two sections of the CEQA Guidelines. Section 15308 applies because it exempts the adoption of procedures to protect the environment where no construction activities are proposed in conjunction with the adoption of this policy. Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, applies here because merely receiving a status report on an item is not subject to review under CEQA; and (2) Receive and file the current draft of the Low Impact Development ("LID") Ordinance. This will ensure that the City of Vernon complies with the requirements of the Municipal Separate Storm Sewer System ("MS4") Permit for the Los Angeles Region, Order No. R4-2012- 0175 ("MS4 Permit"). The draft of the proposed LID Ordinance also serves as an introduction of LID concepts. At a later date, staff will propose a final draft of the proposed LID Ordinance and technical manual to the City Council for adoption after a public hearing is conducted. Director of Community Services and Water Kevin Wilson reported on the Low Impact Development ("LID") requirements, advising that all storm water needs to be captured on -site for new and redevelopment projects. He explained and presented on three different options such as infiltrated Best Management Practice ("BMP"), bioretention BMP, and capture and use BMP. Wilson explained that the Council can impose stricter restrictions that those implemented by the Municipal Separate Storm Sewer System ("MS4") Permit, however it would not be staff's recommendation to do so. Wilson recommends that the City adopt an ordinance with the regulations adopted by the Regional Water Board. In response to Councilmember Ybarra's concerns, Wilson advised that the developers will be responsible for meeting the permit requirements. He further clarified that in theory the regulations will remove contaminants from the first few feet of storm water. Page 17 of 22 Regular City Council Meeting Minutes June 18, 2013 In consideration of the cost to the contractors, Mayor McCormick recommended that the City stick to the requirements as adopted by the Region Water Board. All were in concurrence. 2. Guidance on the proposed "Green Streets" policy to establish thresholds for when additional regulations will apply to limit stormwater runoff from city streets. Recommendation: (1) Find that establishing a "green streets" policy is categorically exempt under the California Environmental Quality Act ("CEQA") in accordance two sections of the CEQA Guidelines. Section 15308 applies because it exempts the adoption of procedures to protect the environment where no construction activities are proposed in conjunction with the adoption of this policy. Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, applies here because no specific construction activities are proposed at this time; and (2) Provide staff guidance on the proposed Green Streets Policy to establish thresholds of when a project will be required to implements "green streets" requirements that will apply to limit stormwater runoff from city streets. Director of Community Services and Water Kevin Wilson explained that the funds have been set aside for bio retention. He explained that part of the green streets is to capture storm water in the streets before it gets to the storm drain. Wilson presented examples and explained the permit requirements. He noted that slurry seals and repavement are exempt from the requirement. Wilson reported that City streets, for the most part, are built out, few require street widening. There will be few projects for this. Wilson sought guidance from the Council for the thresholds of when a project will be subject to the green streets requirements in order to prepare an ordinance. It can be applied for all projects, based on project costs or size. Currently the minimum threshold is 10,000 square feet. Councilmember Maisano opined that the minimum threshold is acceptable as placing stricter thresholds would increase costs. Wilson was in agreement as there are barely sufficient funds for the standard repavement. Mayor McCormick was also in agreement and directed staff to prepare the ordinance with the minimum threshold of 10,000 square feet. Interim City Clerk Dana Reed requested a recess at the conclusion of the oral reports to address the Special Successor Agency meeting and then resume the City Council meetingto discuss the matter listed under closed session. Mayor McCormick announced that that will be the order. Page 18 of 22 Regular City Council Meeting Minutes June 18, 2013 ORAL REPORTS Police Chief Daniel Calleros reported on an armed robbery in the 3000 block of Vernon Avenue on June 7, 2013. Detectives will be checking video surveillance cameras from nearby businesses. On June 17, an unauthorized video recording in the women's restroom was reported at an industrial complex in the 2300 block of 49th Street. Officers conducted a search but were not able to locate or identify the suspect. Detectives will conduct further investigation as it is believed the suspect may work at one of the leased businesses within the facility. On June 28, 2013, the Police Department will be attending Farmer John's Health Fair. On June 17, 2013, the department filled the last vacant Records Technician position. This is a critical position due to the limited personnel in the division. Final selection for the Sergeant and Captain promotions has been made. A formal swearing -in will be conducted at the next City Council meeting. Lieutenant Robert Sousa reported vandalism at the 3300 block of 50th Street. Two juveniles were arrested for vandalism. Fire Chief Michael Wilson thanked Independent Reform Monitor John Van de Kamp for bringing the error in the activity reports to his attention. He assured the City Council that Fire personnel are diligent and maintain the Class 1 classification requirements. Wilson announced that the Retiree BBQ on June 27, 2013, at Fire Station No. 2. He advised that the hydrogen flushing will continue through the month of July. On June 28, 2013, the Fire Department will also be attending the Farmer John's Health Fair. On June 24, 26, and 28, 2013, the Department will be conducting Urban Search and Rescue (USAR) Training for the Regional Task Force. The Department will also be conducting its annual self- contained breathing apparatus fit testing for the masks. Wilson reported on commercial structure fires on June 6, 9, and 10, 2013. He reported that on June 6, 201, crews responded to debrief and rubbish fire at 49th Street and Santa Fe Avenue; the same building that burned in December 2012. On June 11,-2013, crews responded to structure fire at 3239 E. 46th Street. Director of Light and Power Carlos Fandino reported on a traffic collision that occurred on June 11, 2013, that damaged the perimeter security fence next to the City's elevated water tank. The fence was repaired under an emergency purchase order. He will be working with Community Services to install a permanent barrier to prevent future incidents. Fandino reported on an incident on June 14, 2013. On June 17, 2013, a truck struck a transmission tower. The accident did not cause disruption in service; request for emergency repairs was made. Director of Finance William Fox thanked the City Council for participating and approving the budget for the next fiscal year. He will be working with the Departments to identify further reductions. Page 19 of 22 Regular City Council Meeting Minutes June 18, 2013 Fox provided an update on the request for proposals for an external financial auditor and a financial advisor. The recruitment process for the Purchasing Assistant is complete. The department has ordered the software for the transition to online business license processing. Director of Health and Environmental Control Department Leonard Grossberg reported that Exide Technologies ("Exide") had been issued a suspension of operations and had conducted several public workshops. As of June 17, 2013, the suspension was removed. Exide will be back in operation in July. Grossberg reported on the investigation at 4 Star Chemical to safely removed and addressed hazardous material. In cooperation with the Fire Marshall, the City took action due to concerns to public safety. In response to Councilmember Ybarra, Grossberg advised that the administrative policy will be used to address 4 Star Chemical and possibly civil action. In response to Councilmember Ybarra, Grossberg explained that the issues at Exide are ongoing. Temporary and permanent fixes have been proposed. Exide is working with the Department of Toxic Substances Control. Some of the concerns will not be able to be measured until Exide is back on line. Grossberg announced the Sustainable Development and Energy Efficiency Commission meeting on June 19, 2013. Human Resources Director Teresa McAllister advised that the classification and compensation study is underway. Employee information meetings were held to explain the process. The associated questionnaire is due to supervisors on June 20, 2013. The new benefits consultant and firm conducting the classification and compensation study will be formally introduced at the next City Council meeting. The training for the Human Resources Information System has been completed. The system enables online application and recruitment process. Assistant to the City Administrator Alex Kung announced the rescheduling of the Oversight Board of the Successor Agency to the Redevelopment Agency meeting to July 11, 2013. There are two items to address during the Successor Agency to the Redevelopment Agency meeting that is to follow. City Attorney Nicholas Rodriguez reported on the receipt of 22 proposals for specialized legal counsel. A screening committee scored the proposals objectively, and will interview the top three. The City will be retaining one firm. Rodriguez reported that the City was served with a law suit from Bruce Malkerhorst Sr. concerning his retirement benefits. The matter will be brought to City Council under closed session. City Administrator Mark Whitworth reported that the Vernon Housing Commission meeting was held on June 12, 2013. Solari Enterprises, Inc., the third party housing management firm was introduced and the housing lottery was conducted. The Commission agreed to continue with the next step in increases Page 20 of 22 Regular City Council Meeting Minutes June 18, 2013 towards market rent. The Huntington Park unit's market rent was reduced. Whitworth announced that the Commission requested that the City Council revisit the divestment of the Huntington Park units. The matter will be placed on the July 2, 2013, meeting. Additionally, three terms on the Commission will expire in August. The Mayor will need to appoint Commission members to be ratified by the City Council. The matter will be brought forth at the August 6, 2013, City Council meeting. The Housing Commission is scheduled to meet next on September 11, 2013; they will be electing a Chairperson and Vice Chairperson. On June 28, 2013, the JLAC report is due. The City has completed almost all the good governance reform efforts. A representative from the IT Department will be making a presentation on the new City's website at an upcoming meeting. He thanked the Finance Director, City Attorney, and Human Resources Director for their efforts to address areas of deficiencies. The City is moving forward in a positive direction. Whitworth wished all the retirees well and invited all to the Retiree Luncheon on June 27, 2013, at Fire Station No. 2. Mayor McCormick invited all to the Flag Retirement Ceremony on July 2, 2013, at Fire Station No. 1, hosted by the Vernon Chamber of Commerce and Boy Scouts. At 11:49 a.m. Mayor McCormick declared a recess to address the Successor Agency meeting. CLOSED SESSION At 12:00 p.m. the City Council reconvened and resumed the meeting to address the closed session items on the agenda. At the same time, it was moved by Davis and seconded by Martinez to go into closed session to discuss the item listed under closed session. Motion carried, 5-0. 1. 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 Firemen's Association, Vernon Fire Management Association, and Teamsters Local 911 At 12:19 p.m. it was moved by Maisano and seconded by Martinez, that the City Council exit closed session. Motion carried, 5-0. City Attorney Nicholas Rodriguez announced that there was no reportable action. Page 21 of 22 Regular City Council Meeting Minutes June 18, 2013 At 12:20 p.m., it was moved by Maisano and seconded by Martinez, to adjourn the meeting. Motion carried, 5-0. ATTEST: D.In Reed ' In 'rim City Clerk W. Michael McCormick Mayor Page 22 of 22