Resolution No. 73731
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RESOLUTION NO. 7373
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE DIRECTOR OF THE UTILITIES
DEPARTMENT TO GIVE NOTICE OF THE CITY OF
VERNON'S WITHDRAWAL FROM THE SOUTHERN CALIFORNIA
JOINT POLE AGREEMENT
WHEREAS, pursuant to communication dated July 7, 1999,
Kenneth DeDario, the Director of the City of Vernon Utilities
Department, recommended that the City of Vernon withdraw from the
Southern California Joint Pole Agreement; and
WHEREAS, the Director of the Utilities Department has
advised that by withdrawing from the Joint Pole Agreement, the
City will benefit by being able to more expeditiously relocate,
repair and replace poles; set work schedules without having to
coordinate through the Joint Pole Committee; and being able to
directly control approval of requests by tenants or utilities to
occupy City -owned poles;, and
WHEREAS, in order to give the Utilities Department
sufficient time to establish a proper application process and
payment schedule, the Director of the Utilities Department has
requested that the City Council authorize him to give six (6)
months notice of the City's intention to withdraw from the
Southern California Joint Pole Agreement; and
WHEREAS, based upon the above, the City Council finds
that it would be in the best interests of the City of Vernon to
withdraw from the Southern California Joint Pole Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon does
hereby find and determine that the recitals contained hereinabove
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are true and correct.
SECTION 2: The Director of the Utilities Department is
directed to provide the Southern California Joint Pole Committee
with six (6) months written notice of the City of Vernon's
withdrawal from the Southern California Joint Pole Agreement.
SECTION 3: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 13th day of July, 1999.
C.
EONIS C. MAL RG, Ma or
ATTEST•
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES
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I, BRUCE V.
MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 7373,
was duly adopted by the City Council of the
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City of Vernon at an
adjourned regular meeting of the City Council
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duly held on Tuesday,
July 13, 1999, and thereafter was duly
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signed by the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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(SEAL)
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SUPPORTING
DOCUMENTS
OFFICE OF THE CITY ADMINISTRATOR/
CITY CLERK
INTER -OFFICE MEMORANDUM
DATE: July 22, 1999
TO: Ken DeDario, Director of Utilities
FROM: Gloria J. Orosco, Chief Deputy City Clerk
RE: Resolution No. 7373
Transmitted herewith, for your files, is a copy of the above
referenced Resolution which was approved by City Council on July
13, 1999.
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
Wm. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE V. MALKENHORST CITY HALL BRUCE W. OLSON
City Administrator / City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 Police Chief
FAX (323) 581-7924 TELEPHONE (323) 583-8811 FAX: (323) 583-5236
July 8, 1999
City Council
City of Vernon
Honorable Members:
The Director of Utilities reviewed the City's advantages of its
membership in the Southern California Joint Pole Committee (JPC).
Based on the following reasons, it would be in the City's best
interest to discontinue their membership with JPC:
► Pole relocation, repairs and replacements can be
completed more expeditiously;
► Work schedules can be set without coordinating
work through the JPC; and
► All tenants or utilities desiring to occupy space
on City -owned poles will require City approval and
such approval will be determined on a case -by -case
basis.
Based on the Director of Utilities review, it is hereby
recommended that the City of Vernon withdraw their membership in
the JPC and establish an application process, requirements, and a
payment schedule for new requests for pole attachments.
Very truly yours,
uce alkenhors
City Clerk
BVM:rcm
July 7, 1999
TO: Bruce V. Malkenhorst, City Administrator
FROM: Kenneth J. DeDario, Director of Utilities Klima
SUBJECT: Southern California Joint Pole Committee Membership
I recommend the City discontinue its membership in the Southern California Joint Pole Committee
QPQ for the following reasons:
• pole relocation, repairs and replacements can be completed more expeditiously;
• work schedules can be set without coordinating work through the JPC; and most
importantly,
• all tenants or utilities desiring to occupy space on City -owned poles will require
City approval and such approval will be determined on a case -by -case basis.
If the City withdraws its membership in the JPC, a rule will need to be created establishing an
application process, requirements and a payment schedule for new requests for pole attachments.
If you have any questions or comments, please contact me. Thank you for your consideration.
KJD: dm
June 2, 1999
TO: David B. Brearley, City Attorney
FROM: Kenneth J. DeDario, Director of Utilities
SUBJECT: New Organization - Purchase Power and Scheduling Coordinator Services
Jorge and I spoke to Bruce about the possibility of Vernon and Azusa establishing a JPA (or some
other sort of organization) in order to out -source the bulk power operations. We believe that it is
in the City's best interest to join forces with Azusa and perhaps with Banning and Colton in the
area of bulk power planning and operations in the near term (and later with other larger utilities if
it makes since). We also believe this is the right time since Azusa, Banning, and Colton are
looking at joining forces with Riverside and possibly even with SRP to provide all the functions
associated with power supply. We believe that we have an opportunity to work directly with
Azusa on establishing a new organization that would provide significant value for the future. If
established, we believe that Banning and Colton will also join and that Riverside, Anaheim,
Pasadena and MWD may join later. We have a great opportunity to just have the smaller utilities
create a cost effective organization that provides each city's members with financial control while
sharing in common cost and knowledge.
Attached is a copy of the discussion paper presented to Bruce. He asked us to send this to you
for your review. After you've had a chance to review, let's get together to discuss. Thank you.
KJD: dm
Attachment
c: Bruce V. Malkenhorst, City Administrator
Jorge Somoano, Assistant Director of Resource Management
ATTACHMENT
For Discussion Proposes
Mission:
Provide cost effective Power Supply services to its members.
Goals:
1. Each Utility shall maintain control of their Financial and operational power supply strategy.
2. Loads and Resources of the various utilities will be independent (financially).
3. Implement the Strategies of the members
• Maximize the value of their generation
• Taking on of various market position including going long and short during different period of time
4. Provide planning service.
5. Provide CAISO Scheduling Coordinator functions
6. Provide custom products to the members
7. Provide periodic reports to the members
8. Maintain a quality risk management system
Benefits:
Economy of scale
Additional coverage
Organizationally focused
Utilities maintain financial control
Expanded resource to provide various services
Allows Cities to better focus on their own unique distribution system
Direct control over staffing and organizational structure
Allows members to have a municipal focus organization to exist in a more competitive environment
Negatives:
Loss of direct City control over personnel
Loss of personnel that provided secondary services to the City
Exposure to having a new organization that tries to build an empire
Recommended Process
Create a new JPA or not -for -profit group (3 to 5 months)
• Professional
• Focus on creating value
• Proper incentives
• At -will employees
Use existing staff and equipment from the members to fill in the vacancy (1 to 12 months)
• JPA would pay the members for the employee's they make available
• Pay for the lease of the equipment
Slowly hire the employees (1 to 12 months)
• Have a professional consultant propose a organizational structure with the right business culture
• Hire existing employees (preference) for the vacancy
Hire consultants to assist in technical areas which staffing is not desired or difficult to obtain. (lmonth)
JCS
06-02-99