20130806 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE
CITY OF VERNON HELD TUESDAY, AUGUST 6, 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 9:00 a.m.
by Mayor McCormick. Councilmember Ybarra led the flag salute.
CHANGES TO THE AGENDA
Interim City Clerk Dana Reed announced that there are no changes
to the agenda.
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.
Jim Andreoli of Baker Commodities Inc. stated that his comments
are based on the recent article in the Los Angeles Times
("Times") concerning former City Administrator Bruce Malkenhorst
Sr, who retired in 2005. Upon his retirement, he received the
largest pension in California. Andreoli referred to
Malkenhorst's legacy as an era of cronyism and corruption that
almost led the City to the brink of disaster during the AB46
campaign and cost the Vernon businesses large sums of money and
their reputation.
Andreoli reported on Malkenhorst's pension reduction by Ca1PERS
and his lawsuit against the City to recover the full amount.
Andreoli holds the City and Council responsible for approving
Malkenhorst's salary and benefits; as such, arguing against the
lawsuit will be difficult. If the City loses the case, the
burden of the cost will once again come out of taxpayers'
pockets.
Andreoli reported on Malkenhorst's approximately 30 years in
Vernon and questioned how he was able to take so much of the
taxpayers' money. As identified by the Times article, Project
Labor Group was one method. Andreoli reported on the Project
Labor Group findings.
Last year's State Audit report indicated that utility costs in
Vernon were never low, as the City did not have an energy
strategy during Malkenhorst's rein. He reiterated that the
City's defense against the lawsuit will not be easy. He
described this as another financial disaster, one of many that
have been passed on the business owners over the years.
Businesses want their money to go to the General Fund and hope
the City wins the case. Moreover, businesses want the City to
sue Malkenhorst and garnish his pension until all funds he took
from the taxpayers are recovered.
Regular City Council Meeting Minutes
August 6, 2013
He encourages the City to conduct forensic accounting if
necessary and/or a class-action suit. Businesses are willing to
participate as they want justice and funds recovered.
Independent Reform Monitor John Van de Kamp stated that those
were well-chosen remarks by Andreoli. As more information
becomes available, he encourages the City to go back and review
payments made to Malkenhorst and affiliates. The City has taken
the appropriate position, but further review of payments made
directly to Malkenhorst is encouraged.
Van de Kamp advised that he was misquoted in the July 2, 2013,
City Council meeting Minutes. He clarified that he had
suggested inviting new Los Angeles Mayor Eric Garcetti and other
local Mayors and Administrators, but has not had conversations
with Garcetti. Rather, he perceives that Garcetti would be open
to the idea. Van de Kamp reported on an event Garcetti held at
the Getty and wondered whether Vernon had participated. He
encourages Vernon to invite local cites who may have a common
interest and Mayor Garcetti and build positive relationships.
Rick Fung, CFO of Golden West Trading Inc., requested a private
meeting with staff concerning the challenges they are facing
with the construction project.on Downey Avenue and Vernon
Avenue. Fung advised that the project will bring approximately
1,000 jobs to the City. He hopes that a meeting to address the
challenges will speed up the process so that they can get moved
in.
In response, Mayor McCormick instructed Director of Community
Services and Water Kevin Wilson to meet and schedule a meeting
with Fung at the conclusion of the City Council meeting.
In regards to the biomethane agenda item, Marisa Olguin,
President of the Vernon Chamber of Commerce, applauded the City
for their diligence in securing resources to reduce the City's
carbon footprint and ensuring that the City's renewable
portfolio standard costs are competitive.
Olguin support the efforts of the City Attorney to fight the
Malkenhorst lawsuit. Malkenhorst's actions add insult to injury
against the businesses who feel defrauded. Olguin stated that
many positive actions have been taken to move away from old
practices. The Chamber supports safeguards against further
abuse. This incident reminds all of the importance of
accountability, and the importance for the Council to review the
recommended material, ask questions of staff, and hold each
other accountable. Olguin offered the Chamber's assistance in
the fight against the Malkenhorst lawsuit.
PRESENTATIONS -
1, Recognition of four newly promoted Engineers in the Fire
Department.
Fire Chief Michael Wilson reported on the Engineering exam
noting that it is perceived as one of the most difficult exams.
He presented on each of the newly promoted Engineers: Greg
Bringhurst, Jason Haugen, Michael Pinnere, and Anthony Fish.
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PUBLIC HEARINGS
1. Public comment on the City of Vernon's conformance with
the criteria in the 2013 Congestion Management Program as
established by the Los Angeles County Metropolitan
Transportation Authority.
Director of Community Services and Water Kevin Wilson reported
on the history of the Congestion Management Plan ("CMP"). In
order to receive state gas tax funds and be eligible for other
federal transportation funds, the City must comply with the CMP
requirements, part of which involves adoption of a CMP Local
Development Report to be submitted to the Los Angeles
Metropolitan Transportation Authority ("MTA"), and a public
hearing. Based on this report the MTA allocates credits or
debits. Wilson noted that the City has historically had a
debit.
Wilson reported that in order to reduce traffic congestion
changes to the CMP have been proposed including a fee program.
.However, this proposal has been tabled, and rather the MTA is
meeting with legislation to review the program in its entirety
to determine how it should proceed or whether it should be
suspended. Wilson noted and reported on local projects that he
opined will provide traffic congestion relief in the future.
Staff has conducted the report to comply with the existing CMP
as it awaits for a decision from legislation.
At 9:30 a.m., Mayor McCormick opened the public hearing for
comments on the City of Vernon's conformance with the criteria
in the 2013 Congestion Management Program.
With no comments, at 9:30 a.m., Mayor McCormick closed the
public hearing to consider the approval of the Resolution
adopting the CMP Local Development Report.
Resolution No. 2013-71 - A Resolution of the City Council
of the City of Vernon finding the City of Vernon to be in
Conformance with the Congestion Management Program (CMP)
and Adopting the CMP Local Development Report, in
Accordance with California Government Code Section 65089.
Recommendation:
(1) Find that approval of the 2013 CMP Local Development
Report is statutorily exempt under the California
Environmental Quality Act ("CEQA") in accordance with
CEQA Guidelines Section 15276, which expressly exempts
the preparation and adoption of a congestion
management program and categorically exempt pursuant
to CEQA Guidelines Section 15061 (b)(3) because there
is no possibility that approving the report may have a
significant effect on the environment; and
(2) Afterconducting a public hearing,' adopt a resolution
self -certifying the City's compliance with the
Congestion Management Program requirements and adopt
the 2013 CMP Local Development Report in accordance
with California Government Code Section 65089.
It was moved by Maisano and seconded by Davis to approve
Resolution No. 2013-71. Motion carried, 5-0.
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CONSENT CALENDAR
It was moved by Davis and seconded by Ybarra to approve the
matters listed on the Consent Calendar with authority to correct
the Minutes of the July 2, 2013, meeting upon further discussion
with Independent Reform John Van de Kamp. All other matters
were approved as presented. Motion carried, 5-0.
Claims Against the City (to be received and filed)
1. Claim for Damages received on July 3, 2013 from Valerie
Cruz in the amount of. $1,031.42.
Minutes Approval
2. Minutes of the Special and Regular City Council Meeting
held July 2, 2013, to be received and filed.
3. Minutes of the Special City Council Meeting held July 3,
2013, to be received and filed.
Warrant Registers
4. Ratification of the following City Warrant Registers to
record the following voided checks:
a. City Warrant Register No. 1382 to record voided Check
No. 341425 in the amount of $661.05; and
b. City Warrant Register No. 1382 to record voided Check
No. 341355 in the amount of $40.44; and
c. City Warrant Register No. 1378 to record voided Check
No. 340797 in the amount of $5,326.25; and
d. City Warrant Register No. 1381 to record voided Check
No. 341335 in the amount of $958.75.
5. Approval of City Warrant Register No. 1383, totaling
$3,062,687.81, which covers the period of June 25, through
July 29, 2013, and consists of the following:
a. Ratification of wire transfers totaling $2,349,210.10;
and
b. Ratification of the issuance of early checks totaling
$608,784.90; and
c. Authorization to issue pending checks totaling
$104,692.81; and
d. Ratification to record voided Check Nos. 341522,
341591 totaling $1,770.49.
6. Approval of City Payroll Warrant Register No. 685,
totaling $2,546,933.67, which covers the period of May 19,
through June 3.5, 2013, and consists of the following:
a. Ratification of direct deposits, checks and taxes
totaling $1,846,312.64; and
b. Checks and electronic fund transfers (EFTS) through
the General bank account totaling $700,621.03.
7. Approval of Light & Power Warrant Register. No. 348,
totaling $10,034,164.36, which covers the period of June
25, through July 29, 2013, and consists of the following:
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August 6, 2013
a. Ratification of wire transfers totaling $9,912,134.46;
and
b. Ratification of the issuance of early checks totaling
$97,225.90; and
c. Authorization to issue pending checks totaling
$24,804.00.
S. Approval of Gas Warrant Register No. 136, totaling
$4,670,214.51, which covers the period of June 25, through
July 29, 2013, and consists of the following:
a. Ratification of wire transfers totaling $4,638,004.62;
and
b. Ratification of the issuance of early checks totaling
$31,983,39; and
C. Authorization to issue pending checks totaling
$226.50.
City Administration
9. Resolution No. 2013-72 - A Resolution of the City Council
of the City of Vernon approving Amendment No. 1 to the
Memorandum of Understanding by and between the City of
Vernon and the Vernon Firemen's Association regarding
Retiree Medical Benefits.
Recommendation:
(1) Find that adoption of the resolution proposed 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) Adopt the resolution approving Amendment No. 1 to the
2012-2014 Memorandum of Understanding between the City
and the Vernon Firemen's Association regarding Retiree
Medical Benefits.
10. Councilmember attendance report on the Independent Cities
Association Seminar held July 11 through July 13, 2013, to
be received and filed.
Community services and Water Department
11. Building Department Report for the month of June 2013, to
be received and filed.
12. Contract No. CS-0363- Citywide Cold Planing and Striping
Bid Award.
Recommendation:
(1) Find that the Bid Award of the proposed Citywide Cold
Planing and Striping Phase I Project is exempt under
the California Environmental Quality Act ("CEQA") in
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 Palp, Inc. dba Excel Paving Company as the lowest
responsive and responsible bidder and enter into a
contract not to exceed $240,000, for contract No. CS-
0363, Citywide Cold Planing and Striping, and to
reject all other bids.
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13. Request for approval to accept Citywide Slurry Seal, Phase
II Project, Contract No. CS-0369.
Recommendation•
(1) Find that the approval of the proposed Citywide Slurry
Seal, Phase II Project is exempt under the California
Environmental Quality Act ("CEQA") in accordance with
Section 15301, Existing Facilities, part (c), existing
highways and streets; and
(2) Approve the Contract Agreement with Petrochem
Manufacturing, Inc. for the Citywide Slurry Seal Phase
II project, Contract CS-0369 and enter into a
contract, not to exceed $281,600.
Finance Department
14. Authorization to enter into a Contract with Vasquez &
Company LLP for Audit Services for Fiscal Years 2013-2015..
Recommendation:
(1) Find that entering into a contract with a California
certified public accounting firm to provide
independent audit service is exempt under the
California Environmental Quality Act ("CEQA") in
accordance with Section 15061(b)(3). The general rule
is that CEQA only applies to activities that may have
an effect on the environment. Professional auditing
service activities are not subject to CEQA; and
(2) Authorize the City Administrator to execute a three
year professional services agreement with the public
accounting firm of Vasquez & Company LLP to perform
the annual audits of the financial statements of the
City of Vernon and its Light and Power Enterprise for
the three fiscal years ending June 30, 2013, 2014 &
2015 at a total amount of $294,559. Competitive
bidding is not required pursuant to Vernon Municipal
Code Section 2.17.12 (A)(10)(Professional Services).
The recommended award is based upon a competitive
selection process specified by Vernon's Competitive
Bidding and Purchasing Ordinance.
15. Authorization to enter into a professional services
agreement with Public Financial Management, Inc. ("PFM")
for Financial Advisory Services for Fiscal Years 2014-
2016.
Recommendation:
(1) Find that entering into a professional services
agreement with a Securities Exchange Commission
registered advisor, whose sole business is to provide
clients with financial and investment advisory
services, is exempt under the California Environmental
Quality Act ("CEQA") in accordance with Section
15061(b)(3). The general rule is that CEQA only
applies to activities that may have an effect on the
environment. Financial advisory service activities
are not subject to CEQA; and
(2) Authorize the City Administrator to execute a three
year professional services agreement with the
financial advisory group, The PFM Group ("PFM"), to
serve as Financial Advisor to the City. The proposed
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August 6, 2013
cost for each of the three years is $200,000 for a
grand total, not to exceed amount of $600,000. For
fiscal year 2014, the $200,000 contracted amount has
been budgeted. Competitive bidding is not required
pursuant to Vernon Municipal Code Section 2.17.12
(A)(10)(Professional Services). The recommended award
is based upon a competitive selection process
specified by Vernon's Competitive Bidding and
Purchasing Ordinance.
Fire Department
16. Activity Report for the period of June 16, through June
30, 2013, to be received and filed.
17. Activity Report for the period of July 1, through July 15,
2013, to be received and filed.
Health and Environmental Control Department
18. June 2013 Monthly Report, to be received and filed.
Police Department
19. Activity Log and Statistical Summary of Arrest and
Activities for the period of June 16, through June 30,
2013, to be received and filed.
20. Activity Log and Statistical Summary of Arrest and
Activities for the period of July 1, through July 15,
2013, to be received and filed.
NEW BUSINESS
City Administration Department
1. Ratification of Mayor's Appointment of Eligible
Individuals to Serve on the Vernon Housing Commission for
new Four -Year Terms Beginning August 11, 2013.
Recommendation;
(1) Find that ratification of the Mayor's appointment of
eligible individuals requested below is exempt from
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) Ratify the Mayor's appointment of the following
eligible individuals to serve on the Vernon Housing
Commission for new four-year terms beginning August
11, 2013:
M�or's Appointment
Category
Michael McCormick
Member)
Melissa Ybarra (Incumbent)
Council Member)
Michael Hughes (Incumbent)
Eligible Appointment
Resident (City Council
Resident (Non -City
Business Representative
City Administrator Mark Whitworth reported that on August 11,
2013, three seats on the Commission will become vacant.
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August 6, 2013
Pursuant to Vernon Code 2.122, the Mayor is to select the
Commission members to be ratified by the Council. The vacancy
announcement and interest form were mailed to residents and
businesses in Vernon. Said documents were also posted on the
City's website and outside of City Hall.
Whitworth reported that three non-Councilmember resident and
nine Vernon business representative submitted interest forms.
After review, Mayor McCormick elected to reappoint incumbents to
two vacant positions. Whitworth provided background information
on Melissa Ybarra and Michael Hughes.
With no interest received for the City Council resident seat,
Mayor McCormick volunteered to fill the vacancy.
Interim City Clerk Dana Reed announced that with regard to
Melissa Ybarra's reappointment to the Housing Commission, there
is no conflict of interest for Councilmember Ybarra, as Ms.
Ybarra is not a dependent of the Councilmember.
City Attorney Nicholas Rodriguez concurred.
It was moved by Davis and seconded by Maisano to ratify the
Mayor's appointments to serve on the Vernon Housing Commission.
Motion carried, 5-0.
2. Approval to fund the construction phase of the soccer
field renovations at Salt Lake Park in the City of
Huntington Park.
Recommendation:
(1) Find that approval of the agreement proposed is exempt
from 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
because this approval involves solely the placement of
money into an escrow account, and in accordance with
Section 15302 which exempts activities consisting of
the replacement and reconstruction of an existing
facility, and because the City of Huntington Park is
the lead agency charged with making the final CEQA
determination; and
(2) Approve the "Cooperative Agreement between the City of
Huntington Park and the City of Vernon for the
Construction Portion of the Project" in substantially
the same form as submitted herewith, authorizing
$500,000 for the construction costs; and
(3) Authorize the deposit of $100,000 per month, for five
months, beginning no later than September 30, 2013,
totaling $500,000, into an escrow account to fund
construction costs to renovate the soccer field at
Salt Lake Park in the City of Huntington Park; and
(4) Approve an ^Amended Escrow Agreement" with the City of
Huntington Park, in substantially the same form as
submitted herewith, to include the aforementioned
additional deposit of $500,000; and
(5) Authorize any residual monies from the October 1, 2012
Escrow Agreement that were to be used for the design
phase of the Salt Lake renovations be applied toward
the construction phase of the renovation project.
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August 6, 2013
Assistant to City Administrator Alex Kung reported that as part
of the good neighbor program the City continues to assist
Huntington Park ("HP") with its Salt Lake Park renovations. HP
has decided to move forward with plans for soccer fields and not
the splash pad. The project cost is estimated at $750,000 and
is anticipated to be completed by January 30, 2014. Under the
proposed, Vernon will contribute $500,000, through a $100,000
per month schedule. Kung noted that any unused funds from the
design phase will be allocated to project construction costs.
It was moved by Ybarra and seconded by Maisano to approve the
funds for the construction phase of the soccer field renovation
at Salt Lake Park. Motion carried, 5-0.
Community services and Water Department
3. Resolution No. 2013-73 - A Resolution of the City Council
of the City of Vernon approving and adopting the Gateway
Integrated Regional Water Management Plan dated June 2013.
Recommendation:
(1) Find that the proposed resolution adopting the Gateway
Integrated Regional Water Management Plan is 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 pursuant to Section 15308, because the action is
to assure the maintenance, restoration enhancement or
protection of the environment where the regulatory
process involves procedures for the protection of the
environment; and
(2) Approve a resolution adopting the Gateway Integrated
Regional Water Management Plan dated June 2013.
Director of Community Services and Water Department Kevin Wilson
reported that over the last 18 months, Vernon along with other
local cities have been working with Gateway Southeast to develop
an Integrated Regional Water Management Plan ("IRWMP"). These
cities share the same water resources, quality, and issues as
Vernon. Wilson noted that Los Angeles Gateway Region also has
an IRWMP, but that Gateway Southeast chose not to participate as
they believed they were not getting their fair share of the
costs.
Wilson advised that all types of water issues are covered under
the proposed IRWMP and has undergone public stakeholder review.
Proposition 84 is expected to provide funds for the project. In
order to receive funds, the IRWMP must be approved.
It was moved by Davis and seconded by Martinez to approve
Resolution No. 2013-73. Motion carried, 5-0.
Health Department _
4. Voluntary Cleanup Agreement with DTSC for the former
Thermador Industrial Site located at 5119-5309 District
Blvd., Vernon CA
Recommendation:
(1) Find that the approval of the Voluntary Cleanup
Agreement is exempt under the California Environmental
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August 6, 2013
Quality Act ("CEQA") in accordance with CEQA
guidelines Sections [a] 15061 (b)(3), the general rule
that CEQA only applies to projects that may have an
effect on the environment and; [b] 15330, which
exempts actions costing less than $1 million that are
taken to mitigate the release or threat of release of
hazardous substances such as permitted onsite cleanup
of contaminated soils; and
(2) Authorize the City Administrator to enter into the
attached agreement between the City of Vernon and the
Department of Toxic Substances control to authorize
DTSC's oversight of the city's removal operations.
Director of Environmental Control and Health Leonard Grossberg
reported that the City owns and intends to sell the property in
the future. However,it must first ensure that it meets
environmental standards. Normally the City's Environmental
Control and Health Departmentwouldconduct the certification.
In order to avoid any conflict of interest, staff is proposing
that the Department of Toxic Substance Control oversee the
City's removal operations and certify the property.
Grossberg noted that approximately $6,000 will need to be paid
upfront upon approval.
It was moved by Maisano and seconded by Ybarra to approve the
Voluntary Cleanup Agreement with the Department of Toxic
Substances Control. Motion carried, 5-0.
Light and Power Department
Request for approval of Petrelli Electric, Inc. Rate
Increase.
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 staff to enter into an agreement, effective
August 6, 2013, whereby Exhibit D of the existing
"Electric System.Service and Maintenance Agreement"
between the City and Petrelli Electric, Inc.
("Petrelli") would be revised. This would increase
the amount that Petrelli is paid for the labor
services provided by unionized Petrelli employees by
between 2.69% and 3.38%, depending on the employee
classification. This would cost the City
approximately $230,000 per year, and is intended to
offset Petrelli's increased labor costs due to
Petrelli's increased negotiated 3V rate increase witi
its unionized workers. Non -unionized employees woulc
not have their rates changed. Section 5.1 of the
City's existing agreement with Petrelli allows, but
does not require, the City Council to authorize the
increased rates.
Fiber Optics/Internet System Manager Ali Nour reported that on
July 17, 2012, the City entered into a five-year Electric System
Service and Maintenance Agreement with Petrelli. Section 5.1 of
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said agreement requires the City to reimburse Petrelli for
specific costs including their personnel costs.
Effective June 1, 2013, pursuant to union contract, Petrelli's
personnel costs increased. Petrelli seeks an increase to labor
costs including base wage, numerous other costs directly tied to
wages, additional costs not directly referenced in the union
contract but will increase due to the union contract, and
workers compensation insurance costs. Nour clarified that the
recommended increases will not include overhead costs not tied
to the change in the union contract.
Councilmember Ybarra questioned the increase as he opined that
the increase in costs should have been considered in their
original service agreement.
Nour and Deputy City Attorney Scott Porter explained the
recommended increase pursuant to the agreement.
In response to Councilmember Ybarra's concerns, Nour advised
that staff addresses labor increases as they occur. Increased
overhead costs are not part of the recommended increases.
Rather the proposed is to address union contract increases.
It was moved by Maisano and seconded by Martinez to approve the
Petrelli Electric, Inc. rate increase. Motion carried, 4-0-1
with Ybarra in opposition.
6. Approval of Amendment No. 1 to the Base Contract for Sale
and Purchase of Natural Gas and Biomethane transaction
confirmation between Clean Energy Renewable Fuels, LLC and
the City of Vernon Light and Power Department, adding
Canton Energy, LLC as a party to the contract.
Recommendation:
(1) Find that the proposed Amendment No. 1 to the Base
Contract for the Sale and Purchase of Natural Gas and
Biomethane Transaction Confirmation is not a project
under the California Environmental Quality act
("CEQA") because the contract is a continuing
administrative or maintenance activity, and even if it
were a project, it would be exempt under 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) Approve the Amendment No. 1 to the Base Contract for
the Sale and Purchase of Natural Gas and Biomethane
Transaction Confirmation. Among other things, the
contract would add Canton Renewables, LLC as a party
to the contract and adjust early contract termination
dates.
Fiber optics/Internet System Manager Ali Nour reported on the
biomethane fuel agreement with Clean Energy Fuels, LLC. The
recommendations will capture two events: the transferred of the
agreement to Canton Renewables, LLC effective April 24, 2013,
and the California Energy Commission's decision to qualify the
biomethane gas under this agreement as "green" gas.
It was moved by Ybarra and seconded by Davis to approve
Amendment No. 1 to the Base Contract for Sale and Purchase of
Natural Gas and Biomethane transaction. Motion carried, 5-0.
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7. Request for approval of Westcoast Distribution Optical
Fiber Use Agreement No. 10.
Recommendation:
(1) Find that the approval requested is exempt under the
California Environmental Quality act (`ICEQA") in
accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an
effect on the environment because the proposal will
not require any construction, and the only physical
change to the environment is stringing a few hundred
feet of fiber optic cabling (of roughly % inch in
diameter) from existing utility poles onto private
property; and
(2) Approve optical Fiber Use Agreement No. 10 with
Westcoast Distribution and the related Short Form IRU-
10.1 Indefeasible Right of Use Agreement. Upon
approval, construction for the implementation of an
Optical Fiber Connection will commence.
Fiber Optics/Internet System Manager Ali Nour reported on the
Department's Fiber Optic Division. Nour noted that the system
has excess capacity. As a result, since 2002, the City has
leased unused fiber optic capacity to businesses with multiple
locations in Vernon. Westcost Distribution has requested to
enter into a lease agreement. The terms of the three-year
agreement are comparable to agreements made with other
businesses.
It was moved by Martinez and seconded by Davis to approve the
Westcoast Distribution Optical fiber Use Agreement No. 10.
Motion carried, 5-0.
ORAL REPORTS
Police Chief Daniel Calleros reported on the receipt of $25,000
in funds for reimbursement for parole compliance checks.
Calleros advised that this is part of the proactive time use.
He anticipates additional funds for the fiscal year.
On July 8, 2013, investigators from the CTIP cargo theft team
followed up on information regarding a stolen tractor/trailer
from,the City of Los Angeles. The team was able to locate the
stolen vehicle and conducted surveillance for several hours.
However, no suspects returned to the scene and the truck along
with the full $100,000 in merchandise was recovered.
During a traffic stop on July 14, 2013, of a vehicle that fit
the description of the truck involved in several reported diesel
fuel thefts, officers discovered two large fuel tanks and
related fuel pump devices. Based on the evidence found, the
driver was taken into custody. The case was presented to the
District Attorney's (°DA") office; however, the DA declined
prosecution given the lack of witness identification. Although,
no charges were filed, Police has information on the suspect
that is believed to have been involved in previous diesel fuel
thefts. Calleros alsonoted that the suspect was previously
arrested for similar crimes.
On June 19, 2013, a strong arm robbery was reported in the 2600
block of 37th Street. The victim believes he was followed by
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August 6, 2013
two suspects from a bank in the City of Gardena when he was
physically assaulted upon arriving to the business in Vernon.
The suspects fled with the stolen items in vehicle stopped
nearby.
As part of community outreach, Canine Officer Kent Stevenson and
Officer Alexy Escobedo will be conducting a canine presentation
in the City of Bell at their National Night event this evening.
The event is an effort to promote crime prevention and develop
police -community relations.
Fire Chief Michael Wilson reported on the changes to the
incident reporting sheet to reflect a more accurate account of
the typeofincidents. The information is directly taken from
the Downey Joint Powers Communication Center.
Wilson sadly reported on the passing of Battalion Chief Brian
Wolf. He reported that crews assisted the Downey Fire
Department with station coverage in order to allow for
preparation and funeral attendance. Wilson noted that Wolf was
a friend and will be missed by all Area E Fire Departments.
The Fire Department continues training with the thermal imaging
cameras. The Department completed vehicle extrication training
on the new, donated KIA vehicles. Wilson thanked KIA
Corporation for donating the nine vehicles, and thanked
Community Services Department for assisting in the training
scenario setup.
Wilson reported on Captain Todd Painton's and Firefighter Matt
Holtsendorff's attendance to the Firefighter Survival Training
sponsored by the Los Angeles area Fire Departments. The
training is uniformly taught throughout the nation to facilitate
mutual aid incidents.
Wilson reported on a traffic collision on July 8, 2013. The
single passenger was extricated and transported to the UCS
Medical Center.
On July 24, 2013, crews responded to a man down. Upon arrival
they immediately engaged the AED defibrillator; Paramedics
continued the life-saving tactics until a pulse was reached.
Wilson reported that the -man survived the incident and is in
intensive care at White Memorial.
On July 25, 2013, a pedestrian was run -over by a tractor
trailer. Crews responded to the victim and transported him to
the USC Medical. Center. On July 30, 2013, crews responded to a
commercial structure fire in the City of Commerce.
Director of Community Services and Water Kevin Wilson reported
on the work being performed on Pacific Boulevard by the Gas
Company. He advised that the work is nearing completion. As
previously approved, slurry seal will be performed on various
City streets. Utility companies have been notified of the
anticipated work in hopes that they will coordinate any of their
repairs before the work is scheduled.
Exxon Mobile will also be conducting repair in front of City
Hall and has scheduled a full closure to, be conducted during a
weekend.
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Regular City Council Meeting Minutes
August 6, 2013
Wilson reported on proposed legislation for Maywood Mutual water
Company, a presentation will be conducted at an upcoming meeting
to determine whether the City wants to take a position on the
proposed legislation.
Fiber Optics/Internet System Manager Ali Nour reported on a
power outage that occurred on July 2, 2013. The cause is
unknown, but Nour suspects that during a traffic collision, even
though there is no physical damage, the vibrations may have
caused equipment to come into contact causing an outage.
Nour also reported power outage on July 3, 2013 caused by a
bird, and an outage on July 23, 2013, caused by a Mylar balloon.
Director of Finance William Fox reported on the approval of the
external auditing firm Vasquez & Company LLP. Sitting in the
audience was firm partner Roger Martinez who formally introduced
himself to the Council. Martinez advised that the firm has a
significant amount of experience in municipalities as well as
governmental utilities bringing value to the City of Vernon.
Director of Health and Environmental Control Department Leonard
Grossberg reported that Exide Technologies ("Exide") has been
back in operation since its appeal on the Department of Toxic
Substance Control permit.
Grossberg reported that 4 Star Chemical has completed the
administrative order to remove. toxins from the location after
receiving an extension to July 31, 2013, in order to coordinate
with vendors.
He reported on the completion of the annual food, non-food, and
trash hauler truck inspections.. In response to Mayor Pro Tem
Davis, Grossberg advised that ;approximately 70 trash hauler
trucks, 30-40 non-food trucks, and over 900 whole sale food
trucks were inspected.
Human Resources Director Teresa McAllister announced the launch
of the web based employee suggestion box as a result of a
recommendation through an employee quarterly meeting. The
suggestion box is also available on the shared "M" drive.
In compliance with sexual harassment training requirements,
training sessions are being scheduled next month. She invited
the City Council members to participate in the training.
Assistant to the City Administrator Alex Kung reported that
during a Special oversight Board of the Successor Agency to the
Redevelopment Agency meeting, the long-range property management
plan was. approved. The plan was submitted to the Department of
Finance, staff is continuously monitoring the Department's
website to follow up on the approval. Kung announced that the
next Oversight Board meeting is September 5, 2013, as there will
be no meeting for this agency during the month of August.
City Attorney Nicholas Rodriguez provided a short update for the
public on the Malkenhorst versus the City of Vernon litigation.
He announced that by way of context, the present City Council
has provided unfaltering moral and policy leadership in ending
past abuses of power and distancing the City from the
Page 14 of 17
Regular City Council Meeting Minutes
August 6, 2013
Malkenhorst era to ensure that what was done in the past will
never be repeated in Vernon.
City Administrator Mark Whitworth, Interim City Clerk Dana Reed,
and their respective teams have established good governance best
practices in all of the city's work and services. In the past
three years, Vernon has implemented comprehensive reforms
recommended by Senator Kevin de LeSn, Independent Reform Monitor
John Van de Kamp, and by the State Auditor.
Rodriguez reported on Malkenhorst's activity. Malkenhorst sued
the City of Vernon and Ca1PERS to retain his ill-gotten pension
award, and appealed thedismissalof his lawsuit when his
complaint was thrown out of court. He recently sued the City
directly, making the absurd claim that the City owes him an
estimated $360,000, per year, for the rest of his life.
Rodriguez stated that Malkenhorst's latest effort to enrich
himself at the expense of the City of Vernon has rightly caught
the attention of local, state and national news media. As the
City Council has directed, he announced that he will continue to
oppose Malkenhorst's lawsuits and deny his claims for additional
funds. Mr. Malkenhorst betrayed his oath of office, the city of
Vernon, and the City Council that served Vernon at that time.
Rodriguez reported that the lawsuit is currently in the process
of being transferred from the County of Orange to the County of
Los Angeles where the lawsuit should have properly been filed.
He concluded by stating that legal intends to oppose it
aggressively as soon as it reaches the Los Angeles County
Courts.
City Administrator Mark Whitworth thanked the City Attorney for
all his work as this is not an easy task. Whitworth reported
that Independent Reform Monitor John Van De Kamp had issued his
latest report. Van de Kamp will be presenting a brief overview
at the next City Council meeting. Said report includes five new
recommendations and is available on the City's website.
Whitworth reported that staff conducted its one-year response to
the state audit report. Additional documents were requested;
staff will be providing responsive documents by the end of the
week.
On July 15, 2013, staff met with key business representatives at
Farmer John's. Van de Kamp and other lobbyist were in
attendance. Said meetings will be held every six month and will
create positive relationships with the local businesses.
Whitworth announced that the next issue of the Vernon Quarterly
is due out this week. The newsletter will be made available on
the City's website.
He recalled that during the last meeting IT Programmer/Analyst
Jared Miller presented an overview of the new City website.
Starting September 17, 2013, each Department will be presenting
a brief overview of their webpages.
Whitworth reported on his attendance to the Independent Cities
Association Seminar and attendance to the League of Cities
Installation Dinner.
Page 15 of 17
Regular City Council Meeting Minutes
August 6, 2013
Captain Michael Gillman reported on three vandalism incidents
that occurred on July 21, July 24, and August 2, 2013. Mayor
McCormick reported vandalism at 3063 Fruitland Avenue and on
Soto Street next to Joe K's. Public Information Officer Fred
MacFarlane reported vandalism on City sign on Santa Fe Avenue
north or Slauson.
In response to Interim City Clerk Dana Reed, Gillman advised
that vandalism in rail road yards are reported to their police.
Councilmember Ybarra inquired on how agenda items are classified
under Consent Calendar. He opined that items 11-14 on the
Consent Calendar should have been under New Business and
addressed individually.
In response City Administrator Mark Whitworth advised that items
on the Consent Calendar are to facilitate the process. These
items are usually cursory or actions that would happen as a
matter of fact. Documents for all agenda items are available
for review. If a Councilmember feels an item should be
discussed, said item can be removed from the Consent Calendar
and will be considered immediately after the Consent Calendar.
He encouraged the Council to do so if they have concerns.
Mayor McCormick reported on his attendance to Mayor Eric
Garcetti's event at the Getty Museum and potential networking in
the future.
At 10:35 a.m. Mayor McCormick declared a recess to address the
Successor Agency meeting.
CLOSED SESSION
At 10:37 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 Maisano to
go into closed session to discuss the items listed under closed
session. Motion carried, 5-0.
1.- CONFERENCE WITH REAL PROPERTY NEGOTIATORS (2)
Government Code Section 54956.8
a. Property: 3200 Fruitland Avenue, Vernon, California
Agency Negotiator: Mark Whitworth, City Administrator /
Alex Kung, Assistant to the City Administrator
Negotiating Party: Pechiney Cast Plate, Inc.
Under Negotiation: Price and Terms of Payment
b. Property: A portion of Parcel #6310-008-800 adjoining
Boyle Avenue just north of 54th Street
Agency Negotiator: Mark Whitworth, City Administrator /
Alex Kung, Assistant to the City Administrator
Negotiating Party: Union Pacific
Under Negotiation: Price and Terms of Payment
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Regular City Council Meeting Minutes
August 6, 2013
2. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Agency Designated Representatives: Mark Whitworth, Teresa
McAllister
Employee Organizations: Vernon Police Management
Association, Vernon Police Officers' Benefit Association,
Vernon Firemen's Association, Vernon Fire Management
Association, Teamsters Local 911, and International
Brotherhood of Electric Workers Local 47.
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9 (d)(1)
Bruce V. Malkenhorst. Sr. vs. Citv of Vernon
OCSC Case No. 30-2013-00650310-CU-BC-CJC
4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of litigation pursuant to Government Code
Section 54956.9(d)(4)
One potential case
At 11:20 a.m. it was moved by Davis and seconded by Ybarra, that
the City Council exit closed session. Motion carried, 5-0.
City Attorney Nicholas Rodriguez announced that there was no
reportable action for item nos. 1, 2, and 3. Concerning item
no. 4, the City Attorney was given requested authority to
initiate limited action. Once the action is formally commenced,
it shall be disclosed to any that inquire.
At 11:22 a.m., it was moved by Davis and seconded by Ybarra, to
adjourn the meeting. Motion carried, 5-0.
W. Michael McCormick
Mayor
aTTES IUUI
V
D Reed
Interim City Clerk
Page 17 of 17