Resolution No. 2020-003RESOLUTION NO. 2020-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE CITY OF VERNON'S
PARTICIPATION IN THE PROCESS OF APPOINTMENT OF
DIRECTORS TO THE CENTRAL BASIN MUNICIPAL WATER
DISTRICTS BOARD OF DIRECTORS AND REPEALING ALL
RESOLUTIONS IN CONFLICT THEREWITH
WHEREAS, the City of Vernon (the "City"), is a municipal
corporation and a chartered city of the State of California organized
and existing under its Charter and the Constitution of the State of
California; and
WHEREAS, in 2015, the State Auditor published a report
identifying widespread mismanagement of the Central Basin Municipal
Water District ("CBMWD") and called for more than thirty
recommendations to reform the Central Basin Municipal Water District;
and
WHEREAS, in response to the State Auditor's findings and
recommendations, and in order to overhaul operation of the CBMWD,
Senate Bill 953 ("SB 953") and Assembly Bill 1794 ("AB 1794") were
signed into law on September 21, 2016; and
WHEREAS, AB 1794 required that in 2017 the number of CBMWD's
Board of Directors members be increased from five to eight, with five
publicly elected members and three members appointed by the water
purveyors in the CBMWD service area; and
WHEREAS, AB 1794 requires that by November 8, 2022, a re-
districting of the CBMWD by reducing the number of districts from five
to four and the number of Board Directors from eight to seven with
four publicly elected members and three members appointed by the water
purveyors in the CBMWD service area; and
WHEREAS, Assembly Bill 591 ("AB 591") was signed into law on
July 30, 2019; and
WHEREAS, AB 591 provides clarification to the AB 1794
qualification requirements, defining the term "representative" as a
consultant to or contractor of an entity, or a governing board member
of a mutual water company; and
WHEREAS, AB 591 requires a consultant to or contractor of an
entity, in order to be eligible for nomination as a director, to have
commenced services to that entity at least one year prior to
nomination; and
WHEREAS, AB 591 and AB 1794 require that a nominee be
employed by or a representative of a qualifying entity; and
WHEREAS, as a water purveyor in the service area of the
CBMWD, the City is entitled to participate in the process of
appointment of board directors to the CBMWD Board of Directors; and
WHEREAS, by memorandum dated February 4, 2020, the Public
Utilities Department has recommended the City's participation in the
process of appointment of directors to the CBMWD's Board of Directors;
and
WHEREAS, the City Council of the City of Vernon desires to
authorize the City's participation in the process of appointment of
directors to the CBMWD's Board of Directors.
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 hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt from California Environmental Quality Act
("CEQA") review, because it is an administrative activity that will
not result in direct or indirect physical changes in the environment,
and therefore does not constitute a "project" as defined by CEQA
Guidelines section 15378.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the City of Vernon's participation in the process of
appointment of qualified individuals with relevant technical expertise
representing the water purveyors in the service area of the Central
Basin Municipal Water District to the Board of Directors of the
Central Basin Municipal Water District per guidelines specified in
Assembly Bill 1794 and Assembly Bill 591.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or the City Administrator's
designee, to nominate and vote for a qualified candidate for
appointment to the Board of Directors of the Central Basin Municipal
Water District.
SECTION 5: All resolutions or parts of resolutions,
specifically Resolution No. 2016-69, not consistent with or in
conflict with this resolution are hereby repealed.
ms
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 4th day of February, 2020.
ATTEST:
Lisa Pope, City Clerk
APPROVEDASTO FORM:
Za ou sa,
Senior Deputy City Attorney
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Name: USU l A. MMMM
Title: Mayor ATO -
STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
I, Lisa Pope, City Clerk of the City of Vernon, do hereby certify
that the foregoing Resolution, being Resolution No. 2020-03, was duly
passed, approved and adopted by the City Council of the City of Vernon
at a regular meeting of the City Council duly held on Tuesday, February
4, 2020, and thereafter was duly signed by the Mayor or Mayor Pro-Tem
of the City of Vernon.w
Executed this 1� day of February, 2020, at Vernon, California.
(SEAL)
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Lisa Pope, City Clerk
STAFF REPORT
City Council Agenda Item Report
Agenda Rem No. COV-37-2020
Submitted by Joanna Moreno
Submitting Department: Public Utilities
Meeting Date: February4, 2020
SUBJECT
Process of Appointment of Directors to the Central Basin Municipal Water Districts Board of Directors
Recommendation:
A. Find that approval of the proposed action is exempt from California Environmental Quality Act (CEQA)
review because it is an administrative activity that will rat result in direct or indirect physical changes in
the environment and, therefore, does not constitute a "project" as defined by CEQA Guidelines § 15378;
B. Adopt a resolution authorizing the City of Vernon's participation in the process of appointment of
Directors to the Central Basin Municipal Water Districts Board of Directors; and
C. Ratify the City Administrator's nomination of Noe Negrete, Director of Public Works and City Engineer
for the City of Santa Fe Springs, to serve as a Director representing large purveyors on the Central Basin
Municipal Water Districts Board.
Background:
In September 2016, Assembly Bill (AB)1794 was passed adding three appointed Directors to the
Central Basin Municipal Water District (CBMWD) governance board. Prior to passage of the bill the
board consisted of five elected officials. The bill was enacted to increase transparency and make the
water purveyors of the CBMWD district a more integral part of the decision -making process. The
prospective candidates are nominated by the agency they represent or by another qualifying agency.
Ballots are cast to select the appointed board members and the winning candidate is swom in as a
board member entitled to all privileges granted by the State Water Code and policies of the Central
Basin Municipal Water District Legislative Code.
The three appointed positions are selected from three categories of purveyors:
• Larger Water Users (one vote each)
• Cities (one vote each)
• At Large Water Users (weighted vote based on number of water connections)
Frank Heldman, of Liberty Utilities, was swom into office in early 2019 as the Director appointed by large
water users. Effective November 25, 2019, Frank Heldman submitted his resignation from this position
as Director on the CBMWD Board of Directors ("Board"). As such, there is a vacancy with a remaining
term of office. The large water users are currently. Golden State Water Co., Liberty Utilities, City of Santa
Fe Springs, California Water Services Co., and City of Vernon ("Big 5"). The Big 5 recently met to
discuss the existing vacancy and the importance of nominating a candidate within the legislated
nomination period. With a deadline of February 3, 2020 approaching, on January 17, 2020, City
Administrator Fandino nominated Noe Negrete, City of Santa Fe Springs Public Works Director, to
serve as large -water -user -appointed Director on CBMWD's Board. Staff is requesting ratification of this
nomination by the City Administrator, as it deviated from the authority granted by Resolution No.
2016-69, which limited the Citys nomination and vote strictlyto City employees. Each of the other Big 5
agencies also nominated Mr. Negrete. Although a Vernon Employee or representative was not available
to serve on the Board at this time, there is a high probability that the City of Vernon, as one of the Big 5,
will someday be nominated to fill one of the appointed director seats.
The proposed resolution will repeal Resolution No. 2016-69, clarifying that the City can nominate and
vote for qualified candidates for appointment to CBMWD's Board of Directors per guidelines specified
in AB 1794. Moreover, on July 30, 2019, AB 591 was approved by the Governor of the State of
California, which provides clarification to the AB 1794 qualification requirements, defining the term
"representative" as a consultant to or contractor of an entity, or a governing board member of a mutual
water company. In order to qualify, a nominee would have to be employed by, or be a representative of, a
qualifying entity. AB 591 is included in the proposed amended resolution.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Resolution - Appointment of Directors to the CBMWD Board