Agenda packet — Vernon City Council, May 3, 2022 (part 2 of 3)

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SECTION 3. This ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The City Council hereby finds that the proposed action is exempt from CEQA review because it is a general policy and procedure-making activity that is unrelated to any specific project, which must undergo separate CEQA review, that will not result in direct physical changes or reasonably foreseeable indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378.

SECTION 4. Section 17.16.020 Definitions of Chapter 17.16 of Title 17 of the Municipal Code is hereby amended to include the following:

Truck to Rail Transfer Facility” means any lot, building, or portion thereof where the local collection of bulk materials, solid waste or hazardous waste by truck to be transferred to rail for transport to a final destination for processing or proper disposal.

SECTION 5. Chapter 17.120 of Title 17 of the Municipal Code is hereby added to read as follows:

Chapter 17.120 Truck to Rail Transfer Facilities

17.120.010 Application of chapter.

This chapter shall apply to all Truck to Rail Transfer Facilities located within the City, with the aim of ensuring compatibility of such uses with surrounding uses and properties to avoid or mitigate any negative impacts associated with such uses.

17.120.020 Development agreement required.

Truck to Rail Transfer Facilities are permitted in the I Zone and all overlay zones, with the exception of the Housing Overlay Zone, subject to the approval of a Development Agreement between the City and applicant, with appropriate standards and terms to be negotiated with the City, and complying with all other conditions imposed by this chapter.

17.120.030 Presumption of general incompatibility with existing industrial uses.

In light of the City’s existing businesses and heavily industrial nature, there shall be a presumption that Truck to Rail Transfer Facilities are generally incompatible with existing uses and properties within the City. The burden shall be on the applicant to show that its proposed use and location are compatible with surrounding uses and properties.

SECTION 6. Any provision of the Vernon Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is repealed or modified to that extent necessary to affect the provisions of this Ordinance.

SECTION 7. If any section, subsection, paragraph, sentence, clause, phrase, or portion thereof, of this Ordinance is declared by a court of competent jurisdiction to be Ordinance No. 1281

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unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, paragraph, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, paragraphs, sentences, clauses, phrases, or portions thereof, be declared invalid or unconstitutional. To this end, the provisions of this Ordinance are declared to be severable.

SECTION 8. The City Clerk shall certify the adoption and publish this ordinance as required by law.

APPROVED AND ADOPTED this __ day of _____, 2022.
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LETICIA LOPEZ, Mayor
ATTEST:

LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
______________________
ZAYNAH N. MOUSSA,
Interim City Attorney

CALIFORNIA NEWSPAPER SERVICE BUREAU
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D A I L Y J O U R N A L C O R P O R A T I O N
To the right is a copy of the notice you sent to us for publication in the HUNTINGTON PARK BULLETIN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are):

Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839
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LISA POPE

CITY OF VERNON CITY CLERK
4305 SANTA FE AVE
VERNON, CA 90058

HRG NOTICE OF HEARING
Notice of Public Hearing - Adoption of Ordinance Amending Certain Sections of Title 17 (Zoning)
04/21/2022
Notice Type:

Ad Description

COPY OF NOTICE
3574528
!A000005987748!
An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice.

NOTICE OF CITY COUNCIL PUBLIC HEARING
The City Council of the City of Vernon will
conduct public hearings, which you may attend,
at Vernon City Hall, City Council Chamber, 4305
Santa Fe Avenue, Vernon, CA 90058, or via
Zoom Webinar at
http://www.cityofvernon.org/webinar-cc, in
accordance with Assembly Bill 361 on Tuesday,
May 3 and May 10, 2022, at 9:00 a.m. (or as
soon thereafter as the matter can be heard), to:

Consider introduction and adoption of an
ordinance amending certain sections of Title
17 (Zoning) of the Vernon Municipal Code and
adding a section regarding “Truck to Rail
Transfer Facilities” to allow and regulate truck
to rail transfer facilities within the City of
Vernon.

The proposed ordinance will be available for
public review on the City’s website once the
agenda for the meeting is posted or from the City
Clerk at [email protected] or 323-583-
8811, ext. 546.

Please send your comments or questions to:

Daniel Wall, Director of Public Works
City of Vernon
4305 Santa Fe Avenue, Vernon, CA 90058
(323) 583-8811 ext. 305 Email:

[email protected]
Comments submitted via email will be provided to
the City Council, made available to the public,
and will be part of the meeting record. Please
submit written comments as early as possible, but
no later than 8:00 a.m. on the day of the hearing,
May 3, 2022.

If you challenge the adoption of the ordinance or
any provision thereof in court, you may be limited
to raising only those issues you or someone else
raised at the hearing described in this notice or in
written correspondence delivered to the City of Vernon at, or prior to, the meeting.

In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811 ext. 546. The hearing may be continued, adjourned, or cancelled and rescheduled to a stated time and place without further notice of a public hearing.

Dated: April 7, 2022
/s/
Lisa Pope, City Clerk 4/21/22 PRE-3574528# HUNTINGTON PARK BULLETIN City Council Agenda Item Report
Submitted by: Adriana Ramos
Submitting Department: Public Utilities
Meeting Date: May 3, 2022

SUBJECT
Proposed Changes in Gas Utility Rates
Recommendation:

Adopt Resolution No. 2022-11 amending Natural Gas Rate Schedule Nos. G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation), and G-4 (Large Commercial Gas Commodity) for gas distributed and supplied by the City within its boundaries.

Background:

The Natural Gas Division of Vernon Public Utilities (VPU) serves as an important resource for the City’s business community, providing reliable, high-quality service at some of the lowest rates in the State. At its inception in 2006, the Natural Gas System was constructed to give Vernon customers an alternative, cost effective gas utility option as well as provide service to the Malburg Generating Station. Since 2012, when the Natural Gas System served 30 customers, VPU has been able to connect 85 new customers to bring its current customer account to a total of 115. Over the past several years, VPU has seen significant increases in costs associated with regulatory directives. Additionally, VPU has begun planning to proactively address infrastructure needs as the system begins to age. As such, the Natural Gas Division experiences a shortfall in recovering all necessary labor, maintenance, supplies, administrative and capital costs utilizing the current rates. It is important to note that in the last decade rates have not been adjusted.

To ensure VPU’s Gas Enterprise remains safe and reliable while providing responsive service to the community, on July 7, 2020, the City Council approved an agreement with NewGen Strategies & Solutions, LLC (NewGen) to conduct a Gas Enterprise Cost of Service Study (Study) and to provide Rate Adjustment Recommendations. This analysis was essential to better understand and plan for both the existing and future operational, maintenance and capital needs as well as costs associated with providing continued exceptional service.

The Study consisted of a comprehensive analysis that evaluated operating expenses and compiled a projection of future financial needs to recover the costs of operating the gas utility.

The assessment identified mechanisms needed to meet the revenue requirement while ensuring that VPU maintains a competitive advantage in the market over its competitor(s).

The Study considered the importance of maintaining VPU’s goal to continue providing exceptional, affordable, responsive, and reliable gas service. Results of the Study indicated an anticipated shortfall of approximately $1,800,000 per year to the Natural Gas Enterprise Fund.

In order for the Natural Gas Enterprise Fund to adequately recover its costs to conduct business and cover expenses associated with regulatory directive compliance, labor, maintenance, supplies, administrative costs, and necessary capital investments, it is essential that VPU recover the deficit by implementing rate adjustments.

The Study recommended that rate adjustments be applied to all Commercial rate classes of natural gas customers; G-1 Residential customers were not included as there are no customers in the class, G-2 Small Commercial Gas Service, G-3 Large Commercial Gas Transportation, and G-4 Large Commercial Gas Commodity. To minimize the impact of the proposed rate adjustments on the customer base, the Study recommended that the adjustments be phased in over a three-year period.

As part of the recommendations, instead of implementing a rate adjustment in the initial year (Phase 1) and to minimize the impact to its customers, VPU is proposing to first eliminate customers' existing Utility Users Tax (UUT) credit of 5 percent, resulting in revenues of $584,486 that would be applied toward the Natural Gas Enterprise Fund operating deficit.

UUT credit is a credit paid to customers by VPU to make the UUT increase passed by Measure R in 2018 cost neutral on the customer bill.

For the second year (Phase 2), rate adjustments are proposed as follows:

5.7% for G-2 Small Commercial Gas Service,
1% for G-3 Large Commercial Gas Transportation, and

4.6% for G-4 Large Commercial Gas Commodity customers.

Phase 2 would result in $571,720 of additional revenue.

In the final year (Phase 3), rate adjustments are proposed as follows:

5.6% for G-2 Small Commercial Gas Service,
1% for G-3 Large Commercial Gas Transportation, and

4.6% for G-4 Large Commercial Gas Commodity customers.

This final phase would provide VPU with an additional $594,245 in revenue. Accordingly, the proposed three-year phased rate adjustments will help to sufficiently close the budget gap that presently exists in the Natural Gas Enterprise Fund.

It is also important to note that even with the proposed three-year phased rate adjustments, VPU’s gas rates are anticipated to maintain a significant competitive advantage over SoCalGas rates, calculated to be 15 to 30 percent less (at a minimum). SoCalGas has historically raised rates every three years and is expected to do so in the coming months. VPU also has plans to increase the number of natural gas customers in the next few years, which will further maintain the competitive rate advantage for its customer base and provide much needed revenue support for the Natural Gas Division operation.

To ensure transparency and keep its customers informed, VPU staff presented the results of the Gas Enterprise Cost of Service Study and Rate Adjustment Recommendations to the Business and Industry Commission (BIC) at its February 10, 2022 meeting. The presentation was well received, and City Council approved staff's recommendation to receive and file the BIC presentation at its March 1, 2022 meeting. Additionally, on March 16, 2022, VPU held a Community Stakeholders' Meeting to present the findings and the recommendations of the Study and Recommended Rate Adjustments. The forum was available virtually and in-person.

Overall feedback from attendees was positive and support of the proposed rate adjustments was conveyed.

Per Vernon Municipal Code (VMC) Section 13.28.020 pertaining to the Vernon Natural Gas System, “any rates or change in the rates to be charged and collected for gas supplied by the Vernon natural gas system shall be set by resolution of the City Council.” Therefore, VPU staff is seeking approval and adoption of the proposed resolution modifying Natural Gas Rate Schedules G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation), and G-4 (Large Commercial Gas Commodity) to reflect the rate adjustments recommended per the Cost of Service Study results.

Pursuant to Government Code Section 54354.5, a public hearing notice was posted at City Hall on April 14, 2022 and published on April 14 and 21, 2022 in the Los Angeles Wave (Huntington Park Bulletin). The proposed resolution has been reviewed and approved by the City Attorney’s Office. If approved, the proposed rate adjustments will become effective on July 1, 2022. Gas rate schedules can be found on the City’s website in the Public Utilities section under the Rates & Fees tab.

Fiscal Impact:

Approval and adoption of the proposed resolution will result in an increase in revenue of approximately $584,486 in Fiscal Year (FY) 2022-2023, $571,720 in FY 2023-2024, and $594,245 in FY 2024-2025 for the Natural Gas Enterprise Fund.

Attachments:

1. Resolution No. 2022-11

2. Notice of Public Hearing

3. Natural Gas Cost of Service Study Letter

4. Revised Natural Gas Rate Schedule (Redline)
RESOLUTION NO. 2022-11

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 G-4 (LARGE

GAS COMMODITY) FOR GAS DISTRIBUTED AND SUPPLIED BY THE

CITY WITHIN ITS BOUNDARIES
SECTION 1. Recitals.

A. In connection with the operation of the Vernon natural gas system, the City owns, operates and maintains a gas distribution system, which includes not only mains and appurtenances but also meters, laterals and other connection infrastructure.

B. Pursuant to Section 13.28.020 of the Vernon Municipal Code, any rates or change in rates to be charged and collected for gas supplied by the Vernon natural gas system shall be set by resolution of the City Council.

C. The General Manager of Public Utilities has recommended that the City Council amend Natural Gas Rate Schedule Nos. G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation) and G-4 (Large Gas Commodity) to reflect the rate adjustments recommended by the Cost of Service study results.

D. The City Council of the City of Vernon desires to approve the Amended Rate Schedules.

E. The City Council of the City of Vernon held a public hearing on May 3, 2022, to amend the Natural Gas Rate Schedule Nos. G-1, G-2, G-3 and G-4 for gas distributed and supplied by the City within its boundaries and finds that all persons have had the opportunity to be heard or to file written comments to the proposed amendments.

F. The City Council of the City of Vernon has heard and considered all evidence, both written and oral, presented in consideration of the proposed Amended Rate Schedules.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS:

SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct.

SECTION 3. The City Council of the City of Vernon hereby revises Natural Gas Rate Schedule Nos. G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation) and G-4 (Large Gas Commodity), Resolution No. 2022-11

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to read as set forth in Exhibit A to this Resolution. Such amendments shall become effective July 1, 2022.

SECTION 4. All resolutions or parts of resolutions not consistent with or in conflict with this resolution are hereby repealed.

SECTION 5. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.

APPROVED AND ADOPTED this 3rd day of May, 2022.
________________________
LETICIA LOPEZ, Mayor

ATTEST:

LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:

ZAYNAH N. MOUSSA,
Interim City Attorney

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-1

RESIDENTIAL GAS SERVICE

APPLICABILITY
This schedule applies to natural gas service to individually metered single family premises, including those separately metered in a multi-family complex, that have elected natural gas service from City of Vernon’s natural gas distribution system.

RATES
Monthly Service Charge: $12.00
Transportation Charge: $0.3000 per Therm
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate. Bond-financed, prepaid gas may be provided to customers at prices not to exceed market prices for monthly index price gas. From time-to-time, the Commodity Charge may include a Purchased Gas Adjustment that will be used maintain a zero sum gain to COV for gas sales.

Commodity Administrative Fee: $0.0030 per Therm

SPECIAL NOTES

1. Residential customers receiving natural gas service from the City of Vernon are not eligible for Schedule G-CARE (SoCalGas Rate), or any other SoCalGas rates or SoCalGas benefit programs.

2. Costs for connection of Customer’s facility to City’s gas system shall be shared between Customer and City. City shall contribute an amount equal to the greater of (1) four cents per Therm multiplied by Customer’s projected annual usage, not to exceed fifty percent of the total connection cost incurred for work done by the City; or (2) three times the projected annual transportation revenue to City from the account. Customer shall pay the

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City of Vernon Council Resolution 2022-11 effective July 1, 2022 Resolution No. 2022-11

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balance of costs. The total connection cost includes traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. An “Application and Contract for Natural Gas Service” is required.

3. In the event of curtailment, any Customer unable or unwilling to curtail shall be assessed penalty based on the rate per Therm that SoCalGas would charge customers whose volumes used are in violation of curtailment. The City shall not be liable for damages caused by curtailment, discontinuance, or shut off of gas service.

4. Gas purchased under this schedule shall be used only by the Customer and such Gas may not be sold, transported, assigned, distributed, exchanged, or otherwise transferred to benefit another customer or provide non-municipal natural gas to any natural gas user, transporter, or consumer within the City.

5. Any additional transmission costs, taxes, fees, regulatory surcharges, and interstate or intrastate pipeline charges, incurred by City on behalf of Customer will be passed through to Customer at cost.

6. Greenhouse Gas Emissions Surcharge is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12.

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City of Vernon Council Resolution 2022-11 effective July 1, 2022 Page 1 of 2

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-2

COMMERCIAL GAS SERVICE

APPLICABILITY
This schedule is for combined gas commodity and transportation service to commercial customers using less than 250,000 Therms per year receiving Core gas service through City of Vernon’s natural gas system. This schedule is also applicable to all other non-residential customers, regardless of usage volume, that have elected Core Service.

RATES
Monthly Service Charge: $50.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 4,187 Therms $0.1731
Tier II Over 4,187 Therms $0.0774
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate.

Bond-financed, prepaid gas may be provided to customers at prices not to exceed market prices for monthly index price gas. From time-to-time, the Commodity Charge may include a Purchased Gas Adjustment that will be used to maintain a zero sum gain to City for gas sales.

Commodity Administrative Fee: $0.0030 per Therm
Fixed Price Option: Customers with annual gas consumption above 180,000 Therms shall have the option to request a mutually agreeable fixed price on an annual basis for specific quantities (Fixed Price Gas). Fixed Price Gas shall be passed through at City’s cost plus 0.40 Cents per Therm to cover additional administrative work for customized billing and additional gas management.

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City of Vernon Council Resolution 2022-11 effective July 1, 2022 Page 2 of 2 for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service.

SPECIAL NOTES

1. Prior to the commencement of service, Customers purchasing Gas Commodity from City of Vernon shall provide an estimate of each month’s consumption, days of operation, and a facility contact responsible for natural gas consuming equipment.

2. Costs for connection of Customer’s facility to City’s gas system shall be covered by City up to three times the projected annual transportation revenue to the City from the account.

Customer shall pay the balance of the costs. The total connection costs include traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. An “Application and Contract for Natural Gas Service” is required.

6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12.

Resolution No. 2022-11

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City of Vernon Council Resolution 2022-11 effective July 1, 2023 Page 1 of 2

CITY OF VERNON

NATURAL GAS DIVISON
Schedule G-2

COMMERCIAL GAS SERVICE

RATES
Monthly Service Charge: $70.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 4,187 Therms $0.2210
Tier II Over 4,187 Therms $0.1005
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate.

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City of Vernon Council Resolution 2022-11 effective July 1, 2023 Page 2 of 2 for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service.

SPECIAL NOTES

2. Costs for connection of Customer’s facility to City’s gas system shall be covered by City up to three times the projected annual transportation revenue to the City from the account.

6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12.

Resolution No. 2022-11

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City of Vernon Council Resolution 2022-11 effective July 1, 2024 Page 1 of 2

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-2

COMMERCIAL GAS SERVICE

RATES
Monthly Service Charge: $80.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 4,187 Therms $0.2747
Tier II Over 4,187 Therms $0.1247
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate.

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City of Vernon Council Resolution 2022-11 effective July 1, 2024 Page 2 of 2 for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service.

SPECIAL NOTES

2. Costs for connection of Customer’s facility to City’s gas system shall be covered by City up to three times the projected annual transportation revenue to the City from the account.

6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12.

Resolution No. 2022-11

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CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-3

LARGE COMMERCIAL GAS TRANSPORTATION

APPLICABILITY
This schedule is for City of Vernon gas transportation service to large commercial customers using at least 250,000 Therms per year. Customers receiving service under this schedule may purchase commodity gas from a Third-Party Supplier or may request to purchase commodity gas from City of Vernon under Schedule G-4.

RATES
Monthly Customer Charge: $300.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 20,833 Therms $0.1382
Tier II 20,834 – 83,333 Therms $0.0641
Tier III Over 83,333 Therms $0.0478
SPECIAL CONDITIONS, GENERAL. The following Special Condition is applicable to all customers, whether they receive transportation-only service or both transportation and commodity service.

1. Costs for connection of Customer’s facility to City’s gas system shall be shared between Customer and City. City shall contribute an amount equal to the greater of: (1) four cents per Therm multiplied by Customer’s projected annual usage, not to exceed fifty percent of the total connection cost incurred for work done by the City; or (2) three times the projected annual transportation revenue to the City from the account. Customer shall pay the balance of costs. The total connection costs include traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14.

An “Application and Contract for Natural Gas Service” is required.

SPECIAL CONDITIONS, TRANSPORTATION-ONLY SERVICE. The following Special Conditions are applicable to customers that receive transportation-only service. If customers receive commodity service from COV, the following Special Conditions do not apply and the Special Conditions in Schedule G-4 apply.

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1. As a condition precedent to service under this schedule, a “Natural Gas Transportation Agreement” must be executed with City. The Transportation Agreement shall provide specific terms and conditions consistent with this schedule.

2. Transportation of natural gas shall be consistent with SoCalGas Rule No. 30, “Transportation of Customer-Owned Gas,” except where it conflicts with Vernon’s rates and rules.

3. Nomination procedures shall apply to gas transported and delivered to Customer by Vernon as follows.
(a) All nominations shall be communicated to Vernon (or its designated agent) thirty (30) minutes prior to SoCalGas’ deadlines. Communication shall be confirmed by email or facsimile.
(b) All determinations by Vernon as to allocation points and/or maximum daily quantities related thereto or as to the procedures utilized for any allocation process, when made by Vernon, shall be final.
(c) In the event of a declared Over-Nomination Event by SoCalGas, if any Customer is unable or unwilling to reduce its transportation nomination within the two (2) hour window allotted by SoCalGas and Customer’s nominations exceed 110% of its gas usage, Customer may, at Vernon’s sole discretion, be assessed a charge based on the rate per Therm that SoCalGas would charge customers whose nomination exceed 110%. (d) Winter Deliveries. During November through March, any Customer unable or unwilling to nominate and deliver volumes meeting the minimum requirement as specified by SoCalGas in its current applicable Rule 30, may, at Vernon’s sole discretion, be assessed a charge based on the rate per Therm that SoCalGas would charge customers whose nomination and delivery fails to meet the minimum requirement as specified by SoCalGas in its current applicable Rule 30.

4. In the event of curtailment, any Customer unable or unwilling to curtail shall be assessed penalty based on the rate per Therm that SoCalGas would charge customers whose volumes used are in violation of curtailment. The City shall not be liable for damages caused by curtailment, discontinuance, or shut off of gas service.

5. Monthly imbalances shall be resolved as follows.
(a) Over-Deliveries. Vernon shall permit Customer to carry-over, to the following month, over-delivery volumes of up to 10% of Customer’s consumption for the month in which the over-delivery occurred. Any Customer volumes carried over will be applied first to the following month’s consumption. Any volumes of over-deliveries in excess of 10% of Customer’s consumption shall be purchased by Vernon by crediting to the Customer an amount that is not less than the volume of over-deliveries times the

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SoCalGas Buy-Back Rate in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred.
(b) Under-Deliveries. Vernon shall permit Customer to carry-over, to the following month, under-delivery volumes of up to 10% of Customer’s consumption for the month in which the under-delivery occurred. Any volumes of under-deliveries up to 10% of Customer’s consumption shall be applied to the following month’s consumption. Any volumes of under-deliveries in excess of 10% of Customer’s consumption shall be sold to Customer by Vernon at a rate that is not more than the volume of under-deliveries times the SoCalGas Standby Procurement Charge in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred.
(c) Imbalance Trading. Vernon has no program for trading of monthly imbalances amongst Vernon customers; however, Vernon, or Vernon’s gas management agent, may, at its sole discretion, be willing to facilitate imbalance trading through SoCalGas consistent with Schedule G-IMB. As such, Vernon specifically does not imply an obligation to facilitate imbalance trading.
(d) Stricter Provisions. Should SoCalGas impose additional, more restrictive, balancing provisions upon Vernon, the stricter provisions will be adopted and implemented by Vernon, as required by SoCalGas, and thereafter will apply to Customer. Such more restrictive balancing conditions may include the winter balancing rules contained in SoCalGas Rule 30. Customer shall be subject to changed balancing requirements at the time such balancing is imposed by SoCalGas upon Vernon, irrespective of prior written notice to Customer; however, Vernon will attempt to provide advance written notice to Customer.

6. Gas transported under this schedule shall be used only by the Customer and such Gas may not be sold, transported, assigned, distributed, exchanged, or otherwise transferred to benefit another customer or provide non-municipal natural gas to any natural gas user, transporter, or consumer within the City.

7. Any additional transmission costs, taxes, fees, regulatory surcharges, and interstate or intrastate pipeline charges, incurred by City on behalf of Customer will be passed through to Customer at cost.

8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

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CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-3

LARGE COMMERCIAL GAS TRANSPORTATION

RATES
Monthly Customer Charge: $300.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 20,833 Therms $0.1398
Tier II 20,834 – 83,333 Therms $0.0648
Tier III Over 83,333 Therms $0.0486
SPECIAL CONDITIONS, GENERAL. The following Special Condition is applicable to all customers, whether they receive transportation-only service or both transportation and commodity service.

An “Application and Contract for Natural Gas Service” is required.

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2. Transportation of natural gas shall be consistent with SoCalGas Rule No. 30, “Transportation of Customer-Owned Gas,” except where it conflicts with Vernon’s rates and rules.

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8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

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City of Vernon Council Resolution 2022-11 effective July 1, 2023 Resolution No. 2022-11

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________________________

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-3

LARGE COMMERCIAL GAS TRANSPORTATION

RATES
Monthly Customer Charge: $300.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 20,833 Therms $0.1414
Tier II 20,834 – 83,333 Therms $0.0657
Tier III Over 83,333 Therms $0.0493
SPECIAL CONDITIONS, GENERAL. The following Special Condition is applicable to all customers, whether they receive transportation-only service or both transportation and commodity service.

An “Application and Contract for Natural Gas Service” is required.

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City of Vernon Council Resolution 2022-11 effective July 1, 2024 Resolution No. 2022-11

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________________________

2. Transportation of natural gas shall be consistent with SoCalGas Rule No. 30, “Transportation of Customer-Owned Gas,” except where it conflicts with Vernon’s rates and rules.

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City of Vernon Council Resolution 2022-11 effective July 1, 2024 Resolution No. 2022-11

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8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

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City of Vernon Council Resolution 2022-11 effective July 1, 2024 Resolution No. 2022-11

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________________________

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-4

LARGE COMMERCIAL GAS COMMODITY

APPLICABILITY
This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-4 through City of Vernon’s natural gas system.

RATES
Monthly Service Charge: $300.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 20,833 Therms $0.1382
Tier II 20,834 – 83,333 Therms $0.0641
Tier III Over 83,333 Therms $0.0478
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist mainly of index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate. Bond-financed, prepaid gas may be provided to customers at prices not to exceed market prices for monthly index price gas. From time-to-time, the Commodity Charge may include a Purchased Gas Adjustment that will be used to maintain a zero sum gain to COV for gas sales. The Commodity Administrative Fee shall also be added.

Customized Price: Customers eligible for this Rate Schedule G-4 shall also have the option to Option: request mutually agreeable fixed prices, indexed prices, and other customized pricing options for specific months and quantities (Customized Price Gas).

Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee.

Commodity Administrative Fee: $0.0030 per Therm

SPECIAL CONDITIONS

1. As a condition precedent for a large commercial gas commodity service, a “Natural Gas Commodity Agreement” must be executed between COV and Customer. This agreement shall provide specific terms and conditions consistent with COV’s natural gas tariff.

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City of Vernon Council Resolution 2022-11 effective July 1, 2022 Resolution No. 2022-11

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________________________

2. Customers purchasing gas commodity from City of Vernon shall provide an estimate of each month’s consumption, days of operation, and a facility contact responsible for natural gas consuming equipment.

3. Gas purchased under this schedule shall be used only by the Customer and such Gas may not be sold, transported, assigned, distributed, exchanged, or otherwise transferred to benefit another customer or provide non-municipal natural gas to any natural gas user, transporter, or consumer within COV.

4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

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City of Vernon Council Resolution 2022-11 effective July 1, 2022 Resolution No. 2022-11

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________________________

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-4

LARGE COMMERCIAL GAS COMMODITY

APPLICABILITY
This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-4 through City of Vernon’s natural gas system.

RATES
Monthly Service Charge: $1250.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 20,833 Therms $0.1625
Tier II 20,834 – 83,333 Therms $0.0712
Tier III Over 83,333 Therms $0.0530
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist mainly of index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate. Bond-financed, prepaid gas may be provided to customers at prices not to exceed market prices for monthly index price gas. From time-to-time, the Commodity Charge may include a Purchased Gas Adjustment that will be used to maintain a zero sum gain to COV for gas sales. The Commodity Administrative Fee shall also be added.

Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee.

Commodity Administrative Fee: $0.0030 per Therm

SPECIAL CONDITIONS

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City of Vernon Council Resolution 2022-11 effective July 1, 2023 Resolution No. 2022-11

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________________________

4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

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City of Vernon Council Resolution 2022-11 effective July 1, 2023 Resolution No. 2022-11

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________________________

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-4

LARGE COMMERCIAL GAS COMMODITY

APPLICABILITY
This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-4 through City of Vernon’s natural gas system.

RATES
Monthly Service Charge: $2,150.00
Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 20,833 Therms $0.1835
Tier II 20,834 – 83,333 Therms $0.0825
Tier III Over 83,333 Therms $0.0610
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist mainly of index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate. Bond-financed, prepaid gas may be provided to customers at prices not to exceed market prices for monthly index price gas. From time-to-time, the Commodity Charge may include a Purchased Gas Adjustment that will be used to maintain a zero sum gain to COV for gas sales. The Commodity Administrative Fee shall also be added.

Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee.

Commodity Administrative Fee: $0.0030 per Therm

SPECIAL CONDITIONS

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4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

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City of Vernon Council Resolution 2022-11 effective July 1, 2024 Resolution No. 2022-11

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________________________

CALIFORNIA NEWSPAPER SERVICE BUREAU
PRE#

Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839
Visit us @ www.LegalAdstore.com

LISA POPE

CITY OF VERNON CITY CLERK
4305 SANTA FE AVE
VERNON, CA 90058

HRG NOTICE OF HEARING
Notice of Public Hearing -
04/14/2022 , 04/21/2022
Notice Type:

Ad Description

COPY OF NOTICE
3574225
!A000005987821!
An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice.

NOTICE OF CITY COUNCIL PUBLIC HEARING
The City Council of the City of Vernon will
conduct a public hearing, which you may attend,
at Vernon City Hall, City Council Chamber, 4305
Santa Fe Avenue, Vernon, CA 90058, or via
Zoom Webinar at
http://www.cityofvernon.org/webinar-cc, in
accordance with Governor Newsom's Executive
Order N-29-20 on Tuesday, May 3, 2022, at 9:00
a.m. (or as soon thereafter as the matter can be
heard), to:

Consider the adoption of a Resolution
Amending Natural Gas Rate Schedules G-1
(Residential Gas Service), G-2 (Small
Commercial Gas Service), G-3 (Large
Commercial Gas Transportation), and G-4
(Large Commercial Gas Commodity) for gas
distributed and supplied by the City within its
boundaries.

The proposed resolution will be available for
public review on the City’s website once the
agenda for the meeting is posted or from the City
Clerk at [email protected] or 323-583-
8811, ext. 546.

Please send your comments or questions to:

Abraham Alemu, Public Utilities General Manager
City of Vernon
4305 Santa Fe Avenue, Vernon, CA 90058
(323) 583-8811 ext. 250 Email:

[email protected]
During the hearing, any person interested,
including all persons owning property in the local
agency, may appear and be heard as to whether
the proposed rates and charges are
discriminatory or excessive, or will not be
sufficient under Government Code Section
54515, or will not comply with any other provision
of this chapter, or will not be sufficient under the
provisions or covenants of any outstanding
revenue bonds of the local agency payable from
the revenues of the enterprise, or on any other matter relating to said proposed resolution or ordinance or the rates or charges proposed therein. If you challenge the adoption of this resolution or any provision thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811 ext. 546. The hearing may be continued, adjourned, or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated: April 6, 2022 /s/ Lisa Pope, City Clerk 4/14, 4/21/22 PRE-3574225# HUNTINGTON PARK BULLETIN City of Vernon

NOTICE OF CITY COUNCIL PUBLIC HEARING
The City Council of the City of Vernon will conduct a public hearing, which you may attend, at Vernon City Hall, City Council Chamber, 4305 Santa Fe Avenue, Vernon, CA 90058, or via Zoom Webinar at http://www.cityofvernon.org/webinar-cc, in accordance with Governor Newsom's Executive Order N-29-20 on Tuesday, May 3, 2022, at 9:00 a.m. (or as soon thereafter as the matter can be heard), to:

Consider the adoption of a Resolution Amending Natural Gas Rate Schedules G-1 (Residential Gas Service), G-2 (Small Commercial Gas Service), G-3 (Large Commercial Gas Transportation), and G-4 (Large Commercial Gas Commodity) for gas distributed and supplied by the City within its boundaries.

The proposed resolution will be available for public review on the City’s website once the agenda for the meeting is posted or from the City Clerk at [email protected] or 323-583-8811, ext. 546.

Please send your comments or questions to:

Abraham Alemu, Public Utilities General Manager
City of Vernon
4305 Santa Fe Avenue, Vernon, CA 90058
(323) 583-8811 ext. 250 Email: [email protected]
During the hearing, any person interested, including all persons owning property in the local agency, may appear and be heard as to whether the proposed rates and charges are discriminatory or excessive, or will not be sufficient under Government Code Section 54515, or will not comply with any other provision of this chapter, or will not be sufficient under the provisions or covenants of any outstanding revenue bonds of the local agency payable from the revenues of the enterprise, or on any other matter relating to said proposed resolution or ordinance or the rates or charges proposed therein.

If you challenge the adoption of this resolution or any provision thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting.

In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811 ext. 546.

The hearing may be continued, adjourned, or cancelled and rescheduled to a stated time and place without further notice of a public hearing.

Dated: April 6, 2022
Lisa Pope, City Clerk
Publish: April 14, 2022 and April 21, 2022
4305 Santa Fe Avenue
Vernon, CA 90058
(323) 583-8811
Vernon,
CA 90058
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
225 Union Boulevard
Suite 450
Lakewood, CO 80228
Phone: (720) 633-9514
April 27, 2022
via email
Todd Dusenberry
Assistant General Manager
Vernon Public Utilities
4305 Santa Fe Avenue
Vernon, CA 90058
Subject: Vernon Public Utilities Natural Gas Cost of Service Study Dear Mr. Dusenbery:

NewGen Strategies and Solutions, LLC (NewGen) was retained by City of Vernon Public Utilities (VPU) to perform a Natural Gas Utility Cost of Service (COS) and Rate Design Study (Study). As part of this Study, the NewGen and VPU Project Team developed a Test Year (TY) Revenue Requirement, and proposed changes to the Natural Gas Utility base rates and to VPU's Credit Program (VPU Credit). The goal was to increase revenues recovered by VPU to cover the utility's costs and ensure the Natural Gas Utility and enterprise was independently funding its operating and capital expense needs.

Summary of Natural Gas System
VPU’s gas utility currently serves 124 customers within the City of Vernon (City). VPU offers a full requirements service to its customers which includes the purchase of the gas commodity and delivery to the customer premise. VPU also offers a transportation-only service for customers that purchase the gas commodity from a third party and not from VPU. Currently, all 124 customers are commercial or industrial customers. VPU does offer a residential gas rate; however, there are not any current customers, and the residential market segment represents a very small portion of the market potential. The natural gas utility is a relatively new enterprise for VPU and was originally established in 2006. The gas enterprise was constructed and started to support the City’s founding purpose and further support economic development and the existing commercial and industrial companies. As Southern California Gas (SoCal Gas) historically provided gas service within the Vernon City limits, VPU’s gas system directly competes with SoCal Gas for customers.

This competition with SoCal Gas places VPU’s gas utility in a unique situation as compared with other municipally and investor-owned utilities. This direct competition impacts operating and capital expense investment, rate, and regulatory or policy decision-making for the utility. Historically, VPU’s gas rates have been substantially lower than SoCal Gas, further leading to opportunities to grow the system and number of customers served.

Cost of Service and Existing Rates
The primary goal of a COS is to identify all costs incurred by the utility to provide service and how to recover those costs from the varying customer classes. The core steps in developing the COS for VPU’s gas system included developing:

Todd Dusenberry
April 27, 2022

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VPU_Gas COS Letter Report_042722
▪ Revenue Requirement
▪ Cost Classifications
▪ Allocation of Costs to Customer Classes
The revenue requirement reflects VPU’s total costs for providing gas service to its customers. This includes VPU’s ongoing operating expenses and capital investments in the system. The VPU gas revenue requirement was initially based on the Fiscal Year (FY) 2022 budget and the five-year capital improvement plan for the gas system. Known and measurable adjustments were made to this initial budget and capital plan to best reflect the operating conditions and costs for the VPU gas system for the next three years.

By adjusting these initial budgets, a Test Year is created that represents the costs, system conditions, and customer consumption characteristics for a multi-year period of time. By using this approach, it supports the development of stable rates for customers that will last multiple years without further need for adjustments.

The known and measurable adjustments made to the FY 2022 budget included increasing labor costs to reflect additional staff needed to operate and manage the gas system and averaging the capital costs from the five-year capital plan. By averaging the capital costs over the five-year period, it reduced the year-toyear fluctuation in the annual capital needs and stabilized costs for a multi-year ratemaking effort. The results of the Test Year revenue requirement are included in Table 1.

Table 1
VPU Natural Gas Utility Revenue Requirement
Item
Budget FY
2021/22 Adjustments
Test Year
(FY 2022/23)
Operating and Maintenance $5,349,839 $202,134 $5,551,972 Natural Gas Commodity
Purchase
$7,049,575 $(246,244) $6,803,331
Debt Service $ - $ - $ -
Capital Outlay $2,925,000 ($1,971,000) $954,000
Other Expenses (Income) ($1,299,894) $999,894 ($300,000) VPU Credit $604,925 $(604,925) $0
Total $14,629,444 $(1,620,141) $13,009,972
Notes:

Totals may not add exactly due to rounding.

There were several adjustments included in the Test Year revenue requirement. These adjustments included an increase of $202,134 to operating and maintenance expenses to reflect an increase in staffing levels for the natural gas utility. A net reduction of $1,971,000 in the annual capital outlay from the Budgeted FY 2021–22 levels to reflect the average annual capital needs for the next five years. Other Expenses (Income) were also adjusted to reflect the changes to the greenhouse gas market and allowancerelated revenues for VPU. The natural gas commodity purchases were decreased to reflect the 2021 historical natural gas market prices and costs incurred by VPU for the gas commodity. The VPU credit cost was also eliminated. These adjustments result in a total annual revenue requirement for the VPU gas utility of $13,009,972.

Todd Dusenberry
April 27, 2022

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VPU_Gas COS Letter Report_042722
It is important to note that the estimated natural gas commodity costs of $6,803,331 are strictly a passthrough cost of the natural gas commodity from the gas supplier to the retail customers of VPU. This pass-through of cost to retail customers does not include any markup or margin attached to the commodity costs. VPU does not control these costs directly but does control and directly manage the remaining costs in the revenue requirement. If the natural gas commodity costs are removed from the revenue requirement, VPU controls $6,205,972 of the total $13 million revenue requirement, or 48% of the total costs in Table 1. These costs represent the administration, delivery, and capital-related activities in support of delivering gas to customers.

COS Results and Current Rate Revenues
Comparing the projected revenues for the Test Year, maintaining the same commodity costs as used in the Test Year revenue requirement, determines if current rates are adequately recovering the total gas utility costs. The projected rate revenues under current rates are $11,253,624 which is $1,755,680 less than the Test Year revenue requirement. Thus, the current rates are under recovering the total gas utility costs and would require a total 16% increase to align with the COS. It is important to note that current rates also include a 5% bill discount called the VPU Credit. This discount was applied to offset the addition of the new 6% UUT tax applied to the bill. The intent of the VPU Credit was to offset much of the new transfer rate and ensure the overall bill did not increase significantly. The VPU Credit implemented during Measure R will be phased out, increasing VPU Gas revenues.

As the gas rates have not increased over the past decade, the upward pressure on rates from the COS results is not unexpected. The key drivers for the increasing revenue requirement are increasing staff and capital investments to support customer growth. In addition, regulatory costs continue to increase over time for the utility.

Typically, a municipal utility conducts a COS to determine the costs to serve each customer class, then designs rates to align with those COS results. However, in a competitive environment where VPU is directly competing with SoCal Gas for customers, the competitive positioning of VPU’s rates must also be considered as it will affect the customers’ adoption of or switching to VPU’s services from the competition.

This directly affects VPU’s ability to recover the costs of the gas system and the City’s investments in the gas utility.

Based on the competitive environment for the gas utility, VPU’s objective with the COS results was to ensure VPU maintains a significant competitive advantage over SoCal Gas while implementing rate adjustments to be applied to all rate classes currently with customers. The goal is to maintain approximately 15% to 30% lower rates and bills than the competition across the customer classes. In addition to beginning to align rates with the COS results, VPU will also eliminate the VPU Credit program for gas customers. A summary of VPU’s current rate structures by customer class is shown in Table 2.

Todd Dusenberry
April 27, 2022

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VPU_Gas COS Letter Report_042722
Table 2
VPU Natural Gas Utility Current Rates
Charge Type G-1 Residential
G-2 Small
Commercial Full
Service
G-3 Large
Commercial
Transportation
G-4 Large
Commercial Full
Service
Customer ($/Mo.) $10.00 $50.00 $300.00 $300.00
Transport ($/Therm) $0.2921 Tier 1: $0.1731
Tier 2: $0.0774
Tier 1: $0.1382
Tier 2: $0.0641
Tier 3: $0.0478
Tier 1: $0.1382
Tier 2: $0.0641
Tier 3: $0.0478
Commodity ($/Therm) $0.3244 $0.3244 N/A $0.3244
Commodity Admin.

Fee ($/Therm)
$0.003 $0.003 N/A $0.003
CA GHG Fee $0.0740 $0.0740 $0.0740 $0.0740
VPU Credit 5% Bill Discount 5% Bill Discount 5% Bill Discount 5% Bill Discount Recommended Rates and Competition
VPU had two core goals in recommending and designing rates to recover the VPU COS results. These two goals were:
▪ Ensure the gas enterprise is fully sustainable and remains reliable and responsive to customer needs ▪ Ensure the gas rates remain significantly lower than other competitive providers Based on these two goals in rate design, VPU’s rate recommendations included phasing-in rate changes over three years and targeting rate changes by class to maintain a 15% to 30% discount from the competition in the City. A summary of the phased-in rate changes by customer class are included in Table

3. The first phase, in Fiscal Year 2023, includes eliminating the VPU Credit from the bill. Phases two and three periodically increase rates to eventually recover the full COS. The rate increases by class were designed to maintain a competitive position by customer type. Thus, the G-3 Transportation customer class which does not purchase their gas commodity from VPU included smaller rate changes to align with the rate design goals and maintain their competitive advantage against the competition. By the end of the three-year phase-in of rates, the VPU gas enterprise will fully recover its costs to provide service and remain significantly lower than the competition. G-1 Residential customers were not included in the table as there are no current customers in the class.

Todd Dusenberry
April 27, 2022

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VPU_Gas COS Letter Report_042722
Table 3
VPU Natural Gas Utility Rate Change Recommendations
Customer Class Phase 1 FY 2023 Phase 2 FY 2024 Phase 3 FY 2025 Percent Change in Revenues
G-2 Small Commercial Full Service 5.3% 5.7% 5.6%
G-3 Large Commercial Transportation 5.3% 1.0% 1.0%
G-4 Large Commercial Full Service 5.3% 4.6% 4.6%
Total 5.3% 4.9% 4.8%
Aggregate Change in Revenues
G-2 Small Commercial Full Service $372,469 $427,435 $442,945 G-3 Large Commercial Transportation $67,950 $13,111 $13,041 G-4 Large Commercial Full Service $144,067 $131,174 $138,259 Total $584,486 $571,720 $594,245
At these recommended rates, VPU’s Gas Enterprise will generate $13 million per year in Phase 3 with the assumed commodity costs and pricing used in the COS. This will fully recover the VPU Gas Enterprise revenue requirement and full costs of operating the utility. This allows for VPU Gas to fully fund its capital plan, connect new customers, grow the customer base, and meet all regulatory needs.

Table 4 benchmarks and shows the competitive position of VPU gas rates as compared to 2022 SoCal Gas rates. It is important to note the figures summarize the full phase-in over three years of the VPU rates and compare those future rates to current SoCal Gas rates in 2022. It is expected that SoCal Gas rates will increase over this three-year period; however, at the time of COS, the information was not currently available. Thus, as SoCal Gas rates increase in the future, VPU’s competitive position and discount compared to SoCal Gas will increase from the levels shown here.

Todd Dusenberry
April 27, 2022

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VPU_Gas COS Letter Report_042722
Table 4
VPU Natural Gas Utility Rates Benchmark to SoCal Gas
Gas Utility Bill Phase 1 FY 2023 Phase 2 FY 2024 Phase 3 FY 2025 G-2 Small Commercial Full Service (1)
VPU Gas Bill $6,195 $6,597 $7,021
SoCal Gas Bill $9,680 $9,680 $9,680
Difference from SoCal Gas (36%) (32%) (27%)
G-3 Large Commercial Transport (2)
VPU Gas Bill $27,567 $27,731 $27,904
SoCal Gas Bill $29,802 $29,802 $29,802
Difference (7%) (7%) (6%)
G-4 Large Commercial Full Service (3)
VPU Gas Bill $20,461 $22,054 $23,608
SoCal Gas Bill $29,006 $29,006 $29,006
Difference (29%) (24%) (19%)
Notes:
(1) Assumes 12,000 therms per month average bill.
(2) Assumes 200,000 therms per month average bill.
(3) Assumes 40,000 therms per month average bill.

As seen in the table, at the assumed consumption levels, VPU’s rates are approximately 19% to 36% less than the competition and SoCal Gas for the full-service customer classes. As stated previously, these VPU bills are benchmarked to SoCal Gas’ current rates as of January 2022. If or as SoCal Gas rates increase over the next three years, VPU’s competitive position will further improve from these discounted levels.

If you have any questions or concerns regarding the COS results and rate recommendations, please contact Tony Georgis at (720) 633-9496.

Sincerely,
NewGen Strategies and Solutions, LLC
Tony Georgis
Managing Partner – Energy Practice

CITY OF VERNON

NATURAL GAS DEPARTMENTDIVISION
Schedule G-1

RESIDENTIAL GAS SERVICE

RATES
Monthly Service Charge: $12.000
Transportation Charge: 29.212 Cents $0.3000 per Therm
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate. Bond-financed, prepaid gas may be provided to customers at prices not to exceed market prices for monthly index price gas. From time-to-time, the Commodity Charge may include a Purchased Gas Adjustment that will be used maintain a zero sum gain to COV for gas sales.

Commodity Administrative Fee: 0.300 Cents $0.0030 per Therm

SPECIAL NOTES

1. Residential customers receiving natural gas service from the City of Vernon are not eligible for Schedule G-CARE (SoCalGas Rate), or any other SoCalGas rates or SoCalGas benefit programs.

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City of Vernon Council Resolution 201322-6411XX effective JulyJune 18, 202213
balance of costs. The total connection cost includes traffic control, trenching, piping, repaving, and installation of the meter, regulator(s), and other equipment required by the City. See also Rule 14. An “Application and Contract for Natural Gas Service” is required.

6. Greenhouse Gas Emissions Surcharge is calculated per Schedule G-CARB approved by City Council Rresolution Nno. 2015 -– 12.

Page 2 of 2 ends

City of Vernon Council Resolution 201322-6411XX effective JulyJune 18, 202213
City of Vernon Council Resolution 202218-0711 effective JulyMarch 16, 201822 Page 1 of 2

CITY OF VERNON

NATURAL GAS

DEPARTMENTDIVISION
Schedule G-2

COMMERCIAL GAS SERVICE

RATES
Monthly Service Charge: $50.00
Monthly Transportation Charges: Rate, in Cents per Therm Tier I 0 – 4,187 Therms $0.173117.312
Tier II Over 4,187 Therms $0.0774 7.735
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate.

Commodity Administrative Fee: $0.00300.30 Cents per Therm Fixed Price Option: Customers with annual gas consumption above 180,000 Therms shall have the option to request a mutually agreeable fixed price on an annual basis for specific quantities (Fixed Price Gas). Fixed Price Gas shall be passed through at City’s cost plus 0.40 Cents per Therm to cover additional administrative work for customized billing and additional gas management.

This 0.40 Cents per Therm is in addition to the Commodity Administrative Fee. A Fixed Price Addendum must be executed between Customer and City in order to formalize Fixed Price Gas. Customer shall be responsible City of Vernon Council Resolution 202218-0711 effective JulyMarch 61, 201822 Page 2 of 2 for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service.

SPECIAL NOTES

2. Costs for connection of Customer’s facility to City’s gas system shall be covered by City up to three times the projected annual transportation revenue to the City from the account.

6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Rresolution Nno. 2015 -– 12.

5. City of Vernon Council Resolution 2018-17 effective March 6, 2018 Fixed Price Addendum Page 1 of 2

FIXED PRICE ADDENDUM
City of Vernon Natural Gas Rate G-2
Customer:

Maximum Fixed Price Acceptable to Customer: $0.xxx per Therm Actual Fixed Price Provided by City of Vernon: $ (To be provided by City) City of Vernon Signature Validating Actual Price:

Month
Estimated
Total
Therms
Fixed
Price
Quantity
Variable
Price
Estimate
Month
Estimated
Total
Therms
Fixed
Price
Quantity
Variable
Price
Estimate
City of Vernon Council Resolution 2018-17 effective March 6, 2018 Fixed Price Addendum Page 2 of 2 If during any Month Customer is unable to consume all specified Fixed Price Gas, the portion not consumed shall be purchased by City according to the Monthly Commodity Charge, minus 1.0 cent per Therm. Such price may result in a loss or gain for Customer compared to the Fixed Price, dependent on current market conditions. The Variable Price shall be the Monthly Commodity Charge.

Customer shall be responsible for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service.

CUSTOMER:

Signed
Printed
Title
CITY OF VERNON:

Signed
Printed
Title
Date Date
City of Vernon Council Resolution 2022-11 effective July 1, 202223 Page 1 of 2

CITY OF VERNON

NATURAL GAS DIVISON
Schedule G-2

COMMERCIAL GAS SERVICE

RATES
Monthly Service Charge: $750.00
Monthly Transportation Charges: Rate, in Cents per Therm Tier I 0 – 4,187 Therms $0.221017.312
Tier II Over 4,187 Therms $0.1005 7.735
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate.

This 0.40 Cents per Therm is in addition to the Commodity Administrative Fee. A Fixed Price Addendum must be executed between Customer and City in order to formalize Fixed Price Gas. Customer shall be responsible City of Vernon Council Resolution 2022-11 effective July 61, 202223 Page 2 of 2 for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service.

SPECIAL NOTES

2. Costs for connection of Customer’s facility to City’s gas system shall be covered by City up to three times the projected annual transportation revenue to the City from the account.

6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12.

City of Vernon Council Resolution 2022-11 effective July 1, 202224 Page 1 of 2

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-2

COMMERCIAL GAS SERVICE

RATES
Monthly Service Charge: $850.00
Monthly Transportation Charges: Rate, in Cents per Therm Tier I 0 – 4,187 Therms $0.274717.312
Tier II Over 4,187 Therms $0.1247 7.735
Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist of monthly index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate.

This 0.40 Cents per Therm is in addition to the Commodity Administrative Fee. A Fixed Price Addendum must be executed between Customer and City in order to formalize Fixed Price Gas. Customer shall be responsible City of Vernon Council Resolution 2022-11 effective July 1, 202422 Page 2 of 2 for payment of Fixed Price Gas in accordance with City of Vernon Contract for Gas Service, to which Customer agreed when applying for gas service in the first instance, and which incorporates by reference the City of Vernon Rules for Gas Service.

SPECIAL NOTES

2. Costs for connection of Customer’s facility to City’s gas system shall be covered by City up to three times the projected annual transportation revenue to the City from the account.

6. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015–12.

CITY OF VERNON

NATURAL GAS

DEPARTMENTDIVISION
Schedule G-3

LARGE COMMERCIAL GAS TRANSPORTATION

RATES
Monthly Customer Charge: $300.00
Monthly Transportation Charges: Rate, in Cents per Therm Tier I 0 – 20,833 Therms $0.138213.815
Tier II 20,834 – 83,333 Therms $0.0641 6.412
Tier III Over 83,333 Therms $0.04784.784
SPECIAL CONDITIONS, GENERAL. The following Special Condition is applicable to all customers, whether they receive transportation-only service or both transportation and commodity service.

An “Application and Contract for Natural Gas Service” is required.

Page 1 of 3 ends

City of Vernon Council Resolution 2022-11 effective July 1, 2022 City of Vernon
Council Resolution 2013-64 effective June 18, 2013

2. Transportation of natural gas shall be consistent with SoCalGas Rule No. 30, “Transportation of Customer-Owned Gas,” except where it conflicts with Vernon’s rates and rules.

Page 2 of 3 ends

City of Vernon Council Resolution 2022-6411 effective JulyJune 18, 202213
SoCalGas Buy-Back Rate in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred.
(b) Under-Deliveries. Vernon shall permit Customer to carry-over, to the following month, under-delivery volumes of up to 10% of Customer’s consumption for the month in which the under-delivery occurred. Any volumes of under-deliveries up to 10% of Customer’s consumption shall be applied to the following month’s consumption. Any volumes of under-deliveries in excess of 10% of Customer’s consumption shall be sold to Customer by Vernon at a rate that is not more than the volume of under-deliveries times the SoCalGas Standby Procurement Charge in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred.
(c) Imbalance Trading. Vernon has no program for trading of monthly imbalances amongst Vernon customers; however, Vernon, or Vernon’s gas management agent, may, at its sole discretion, be willing to facilitate imbalance trading through SoCalGas consistent with Schedule G-IMB. As such, Vernon specifically does not imply an obligation to facilitate imbalance trading.
(d) Stricter Provisions. Should SoCalGas impose additional, more restrictive, balancing provisions upon Vernon, the stricter provisions will be adopted and implemented by Vernon, as required by SoCalGas, and thereafter will apply to Customer. Such more restrictive balancing conditions may include the winter balancing rules contained in SoCalGas Rule 30. Customer shall be subject to changed balancing requirements at the time such balancing is imposed by SoCalGas upon Vernon, irrespective of prior written notice to Customer; however, Vernon will attempt to provide advance written notice to Customer.

8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 -– 12.

Page 3 of 3 ends

City of Vernon Council Resolution 202213-6411 effective JJulyune 18, 201322

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-3

LARGE COMMERCIAL GAS TRANSPORTATION

RATES
Monthly Customer Charge: $300.00
Monthly Transportation Charges: Rate, in Cents per Therm Tier I 0 – 20,833 Therms $0.139813.815
Tier II 20,834 – 83,333 Therms $0.0648 6.412
Tier III Over 83,333 Therms $0.04864.784
SPECIAL CONDITIONS, GENERAL. The following Special Condition is applicable to all customers, whether they receive transportation-only service or both transportation and commodity service.

An “Application and Contract for Natural Gas Service” is required.

Page 1 of 3 ends

City of Vernon Council Resolution 2022-11 effective July 1, 202223

2. Transportation of natural gas shall be consistent with SoCalGas Rule No. 30, “Transportation of Customer-Owned Gas,” except where it conflicts with Vernon’s rates and rules.

Page 2 of 3 ends

City of Vernon Council Resolution 2022-11 effective July 1, 202223 SoCalGas Buy-Back Rate in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred.
(b) Under-Deliveries. Vernon shall permit Customer to carry-over, to the following month, under-delivery volumes of up to 10% of Customer’s consumption for the month in which the under-delivery occurred. Any volumes of under-deliveries up to 10% of Customer’s consumption shall be applied to the following month’s consumption. Any volumes of under-deliveries in excess of 10% of Customer’s consumption shall be sold to Customer by Vernon at a rate that is not more than the volume of under-deliveries times the SoCalGas Standby Procurement Charge in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred.
(c) Imbalance Trading. Vernon has no program for trading of monthly imbalances amongst Vernon customers; however, Vernon, or Vernon’s gas management agent, may, at its sole discretion, be willing to facilitate imbalance trading through SoCalGas consistent with Schedule G-IMB. As such, Vernon specifically does not imply an obligation to facilitate imbalance trading.
(d) Stricter Provisions. Should SoCalGas impose additional, more restrictive, balancing provisions upon Vernon, the stricter provisions will be adopted and implemented by Vernon, as required by SoCalGas, and thereafter will apply to Customer. Such more restrictive balancing conditions may include the winter balancing rules contained in SoCalGas Rule 30. Customer shall be subject to changed balancing requirements at the time such balancing is imposed by SoCalGas upon Vernon, irrespective of prior written notice to Customer; however, Vernon will attempt to provide advance written notice to Customer.

8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

Page 3 of 3 ends

City of Vernon Council Resolution 2022-11 effective July 1, 202223

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-3

LARGE COMMERCIAL GAS TRANSPORTATION

RATES
Monthly Customer Charge: $300.00
Monthly Transportation Charges: Rate, in Cents per Therm Tier I 0 – 20,833 Therms $0.141413.815
Tier II 20,834 – 83,333 Therms $0.0657 6.412
Tier III Over 83,333 Therms $0.04934.784
SPECIAL CONDITIONS, GENERAL. The following Special Condition is applicable to all customers, whether they receive transportation-only service or both transportation and commodity service.

An “Application and Contract for Natural Gas Service” is required.

Page 1 of 3 ends

City of Vernon Council Resolution 2022-11 effective July 1, 202422

2. Transportation of natural gas shall be consistent with SoCalGas Rule No. 30, “Transportation of Customer-Owned Gas,” except where it conflicts with Vernon’s rates and rules.

Page 2 of 3 ends

City of Vernon Council Resolution 202211 effective July 1, 202422 SoCalGas Buy-Back Rate in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred.
(b) Under-Deliveries. Vernon shall permit Customer to carry-over, to the following month, under-delivery volumes of up to 10% of Customer’s consumption for the month in which the under-delivery occurred. Any volumes of under-deliveries up to 10% of Customer’s consumption shall be applied to the following month’s consumption. Any volumes of under-deliveries in excess of 10% of Customer’s consumption shall be sold to Customer by Vernon at a rate that is not more than the volume of under-deliveries times the SoCalGas Standby Procurement Charge in SoCalGas Schedule G-IMB for the month in which the excess imbalance was incurred.
(c) Imbalance Trading. Vernon has no program for trading of monthly imbalances amongst Vernon customers; however, Vernon, or Vernon’s gas management agent, may, at its sole discretion, be willing to facilitate imbalance trading through SoCalGas consistent with Schedule G-IMB. As such, Vernon specifically does not imply an obligation to facilitate imbalance trading.
(d) Stricter Provisions. Should SoCalGas impose additional, more restrictive, balancing provisions upon Vernon, the stricter provisions will be adopted and implemented by Vernon, as required by SoCalGas, and thereafter will apply to Customer. Such more restrictive balancing conditions may include the winter balancing rules contained in SoCalGas Rule 30. Customer shall be subject to changed balancing requirements at the time such balancing is imposed by SoCalGas upon Vernon, irrespective of prior written notice to Customer; however, Vernon will attempt to provide advance written notice to Customer.

8. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

Page 3 of 3 ends

City of Vernon Council Resolution 2022-11 effective July 1, 202422

CITY OF VERNON

NATURAL GAS

DEPARTMENTDIVISION
Schedule G-4

LARGE COMMERCIAL GAS COMMODITY

APPLICABILITY
This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-43 or G-5 through City of Vernon’s natural gas system.

RATES
Monthly Service Charge: $300.00

Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 20,833 Therms $0.1382
Tier II 20,834 – 83,333 Therms $0.0641
Tier III Over 83,333 Therms $0.0478
Commodity prices hereunder are in addition to rates pursuant to Schedules G-3.

Commodity Charge: Commodity Charge is equal to the City’s Weighted Average Cost of Gas calculated at the SoCalGas Citygate for gas purchased by the City for each month for customers purchasing gas from the City. Gas supply will consist mainly of index price gas, daily market priced gas, and long-term supply purchased for customers purchasing gas from the City. The Commodity Charge includes the cost of transporting the gas to the SoCalGas Citygate. Bond-financed, prepaid gas may be provided to customers at prices not to exceed market prices for monthly index price gas. From time-to-time, the Commodity Charge may include a Purchased Gas Adjustment that will be used to maintain a zero sum gain to COV for gas sales. The Commodity Administrative Fee shall also be added.

Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee.

Commodity Administrative Fee: $0.0030 0.30 cents per Therm

SPECIAL CONDITIONS

Page 1 of 2 ends

City of Vernon Council Resolution 2022-11 effective July 1, 2022 City of Vernon
Council Resolution 10,045 effective September 1, 2009

4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 -– 12.

Page 2 of 2 ends

City of Vernon Council Resolution 2022-11 effective July 1, 2022 City of Vernon
Council Resolution 10,045 effective September 1, 2009

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-4

LARGE COMMERCIAL GAS COMMODITY

APPLICABILITY
This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-34 or G-5 through City of Vernon’s natural gas system.

RATES
Monthly Service Charge: $1250.00

Monthly Transportation Charges: Rate, per Therm
Tier I 0 – 20,833 Therms $0.1625
Tier II 20,834 – 83,333 Therms $0.0712
Tier III Over 83,333 Therms $0.0530
Commodity prices hereunder are in addition to rates pursuant to Schedules G-3.

Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee.

Commodity Administrative Fee: $0.0030 0.30 cents per Therm

SPECIAL CONDITIONS

Page 1 of 2 ends

City of Vernon Council Resolution 2022-11 effective July 1, 202322

4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

Page 2 of 2 ends

City of Vernon Council Resolution 2022-11 effective July 1, 202322

CITY OF VERNON

NATURAL GAS DIVISION
Schedule G-4

LARGE COMMERCIAL GAS COMMODITY

APPLICABILITY
This schedule is for gas commodity service to large customers receiving transportation service under Schedules G-34 or G-5 through City of Vernon’s natural gas system.

Customized prices shall be passed through at COV’s cost from its supplier(s), plus the Commodity Administrative Fee.

Commodity Administrative Fee: $0.0030 0.30 cents per Therm

SPECIAL CONDITIONS

Page 1 of 2 ends

City of Vernon Council Resolution 2022-11 effective July 1, 202423

4. Surcharge for Greenhouse Gas Emissions is calculated per Schedule G-CARB approved by City Council Resolution No. 2015 – 12.

Page 2 of 2 ends

City of Vernon Council Resolution 2022-11 effective July 1, 20243 City Council Agenda Item Report
Submitted by: Daniel Wall
Submitting Department: Public Works
Meeting Date: May 3, 2022

SUBJECT
Request for Zoning Code Variance for 4701 S. Santa Fe Avenue Recommendation:

A. Find that the proposed action is exempt from the California Environmental Quality Act (CEQA), in accordance with CEQA Guidelines § 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment, and to the extent the property owner seeks to engage in actual physical construction or development, such would be subject to independent CEQA review and analysis; and B. Adopt Resolution No. 2022-12 granting the zoning code variance requested for the development of a data center at 4701 S. Santa Fe Avenue.

Background:

The last comprehensive update of the City's zoning code occurred in 2008. Design standards for data centers were included in that update and while these standards have not been changed, the design of data centers has undergone a dramatic transformation. The data centers imagined by the zoning code were warehouse buildings that contained computers.

Modern data centers are buildings built specifically for use as data centers. Modern data centers do not look like and would not function as warehouses. Modern data centers do not contribute to traffic, create odors, dust, or noise. Modern data centers are large and steady users of electricity and provide sales tax revenues when computer equipment is installed and periodically replaced. Currently there are no data centers in the City of Vernon.

Prime Data has approached the City of Vernon about replacing an obsolete building at 4701 S. Santa Fe Avenue with a modern data center consuming up to 49.9 megawatts of electricity.

This location is within the Westside Specific Plan area and data centers are one of the uses that will be encouraged by the specific plan. The applicant has requested variances from the zoning code for automobile parking, truck parking, truck loading, truck maneuvering, and additional street right of way.

Pursuant to Vernon Municipal Code Section 17.68.040, on April 21, 2022, the public hearing notice was mailed to the property owners within a 300-foot radius of 4701 S Santa Fe Avenue, posted at City Hall, and published in the Huntington Park Bulletin.

Fiscal Impact:

There is no fiscal impact associated with this report.

Attachments:

1. Resolution No. 2022-12

2. Notice of Public Hearing

3. Zoning Variance Application
RESOLUTION NO. 2022-12

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
GRANTING A VARIANCE TO 4701 SANTA FE, LLC PURSUANT TO
VERNON MUNICIPAL CODE SECTION 17.56.060, FOR THE PROPERTY LOCATED AT 4701 S. SANTA FE AVENUE IN THE CITY OF VERNON SECTION 1. Recitals.

A. 4701 Santa Fe, LLC (hereinafter referred to as Applicant) occupies the property located at 4701 S. Santa Fe Avenue in the City of Vernon (hereinafter referred to as the Property) and is developing a modernized Data Center at the Property.

B. The Applicant, on behalf of the property owner, INI Investment Corp, has requested a variance from Vernon Municipal Code Section 17.56.060, related to automobile parking, truck parking, truck loading, truck maneuvering, and additional street right of way standards for data centers.

C. The Property is located in the I-Zone, Industrial.

D. The City Council, at its meeting held on May 3, 2022, conducted a public hearing and considered evidence regarding the proposed Zoning Variance and made findings in connection therewith.

E. The City Council, after due consideration of all evidence and reports offered at said meeting, does find and determine the following in accordance with Vernon Municipal Code Section 17.68.060:

A. There are special circumstances applicable to the lot such as its size, shape, topography, location or surroundings that do not apply generally to other properties in the same zone and any relevant overlay zone.

Existing Zoning Code requirements have not been updated to reflect the current size and modernization of data centers, and Applicant’s site would be the only modern data center use in the area. Modernized data centers have very limited need for automobile parking as the structure’s purpose is to house server and networking infrastructure. On-site staff requirements at the Property are very low. In addition, modern data centers have low loading and unloading requirements, necessitating less truck traffic and maneuvering. The Property is also unique in requiring backup generators and a dedicated substation to serve the electric utility needs of the data center. These additional, ancillary facilities decrease available space for parking.

B. Because of the special circumstances applicable to the lot, strict application of the applicable development standards or site planning Resolution No. 2022-12

Page 2 of 3 ends

_______________________
standards would deprive the lot of privileges enjoyed by others. Existing Zoning Code parking requirements were developed for industrial and warehouse uses and did not anticipate the development of a modern data center, and the Property will house the only modernized data center in the area. Application of development standards would preclude the development of a modernized Data Center on this lot.

C. The granting of the Variance will not constitute a grant of special privilege inconsistent with the limitations on other properties in the same zone or any relevant overlay zone. The Granting of the Variance will not be inconsistent with other properties having the same use. The Property’s use will result in reduced automobile and truck traffic and the Variance will not result in additional or overflow street parking.

D. This use and the reduced traffic and on-street parking associated with this project are consistent with the General Plan and complies with other applicable provisions of the Zoning Code.

E. The Variance will not be materially detrimental to the public health, safety, or welfare, or to the interests of residents and property owners nearby the lot. The Property’s use will result in reduced automobile and truck traffic. The requested Variance will not result in additional or overflow street parking.

F. The Variance approval places suitable conditions on the lot to protect nearby properties.

G. The use is permitted or conditionally permitted in the zone and any relevant overlay zone.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS:

SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct.

SECTION 3. The City Council of the City of Vernon hereby finds that this action 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 a significant effect on the environment, and to the extent the property owner seeks to engage in actual physical construction or development, such would be subject to independent CEQA review and analysis and directs the City Clerk to file a Notice of Exemption in regard to the lack of environmental impact of said project with the County Clerk of the County of Los Angeles.

Resolution No. 2022-12

Page 3 of 3 ends

_______________________
SECTION 4. A Variance from Vernon Municipal Code Section 17.56.060 is hereby granted to 4701 Santa Fe, LLC, for the Property located at 4701 S. Santa Fe Avenue.

SECTION 5. The Variance granted is subject to the following conditions:
a. This variance is being granted for a modernized Data Center. Truck loading and parking, and automobile parking shall be on-site and not on-street. b. Any non-data center use shall remove the backup generators to create additional on-site parking.
c. Any non-data center use must demonstrate, through an approved engineering study, that all parking and loading shall be on-site and not on-street.

SECTION 6. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.

APPROVED AND ADOPTED this 3rd day of May, 2022.
________________________
LETICIA LOPEZ, Mayor
ATTEST:

LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:

ZAYNAH N. MOUSSA,
Interim City Attorney
City of Vernon

NOTICE OF CITY COUNCIL PUBLIC HEARING
The City Council of the City of Vernon will conduct a public hearing, which you may attend, at Vernon City Hall, City Council Chamber, 4305 Santa Fe Avenue, Vernon, CA 90058, or via Zoom Webinar at http://www.cityofvernon.org/webinar-cc, in accordance with Assembly Bill 361, on Tuesday, May 3, 2022, at 9:00 a.m. (or as soon thereafter as the matter can be heard), to:

Consider a variance to reduce automobile and truck parking requirements at 4701 S. Santa Fe Avenue, Vernon, CA 90058.

The proposed agenda report will be available for public review on the City’s website once the agenda for the meeting is posted or from the City Clerk at [email protected] or 323-583-8811, ext. 546.

Please send your comments or questions to:

Dan Wall, Public Works Director
City of Vernon
4305 Santa Fe Avenue, Vernon, CA 90058
(323) 583-8811 ext. 305 Email: [email protected]
During the hearing, any person interested, including all persons owning property in the local agency, may appear and be heard. If you challenge the City’s action or any provision thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the meeting.

In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811 ext. 546.

The hearing may be continued, adjourned, or cancelled and rescheduled to a stated time and place without further notice of a public hearing.

Dated: April 19, 2022
Lisa Pope, City Clerk
Publish: April 21, 2022
4305 Santa Fe Avenue
Vernon, CA 90058
(323) 583-8811
DocuS~gn Envelope ID: 69F19488~9C3F-4ACD-8827-706687AFOB6D For Ofliciel Use Only
Acrnuat No. 011.1041.466400
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~. City of Vernon
a~ ~,7 Department of Public Works
~'~~r.~9°' 4305 Santa Fe Avenue, Vernon, CA 90058 (323) 583-8811

ZONING VARIANCE APPLICATION
Please PRINT or TYPE all information
Application is hereby made to the Clty of Vernon, petitioning for a variance for the following described property:

Street address of premises for which the variance is requested:
4701 S Santa Fe Ave. Vemon. CA 9Q058 United States
Legal description (give exact legal description):

See attached exhibit b
Name of Applicant: `~~01 Santa Fe, LLC
3140 Peacekeeper Way, Suite 101A ,McClellan CA 95652 415-896461 Street address City State Zip Code
Record Owaer of property:,
2761 Fruitland Ave
INI Investment Corp
Veman CA 90058
Street address City State Zip Code
Phone#
Phone#
Property Owner representative;

DANNY HO
2761 Fruitland Ave Vernon CA 90058 323-636-1738
Street address City State Zip Code Phone#
❑ Architect D Builder/Developer ❑Consultant D Owner ❑Other Garment warehouse C2 Commercial Overlay District of
Present use of property: Present Zoning:,the I-Zone. Industrial How long has owners) held title to this property? Since September 30, 2019 Are there any easements, covenants or deed restrictions controlling the use of this property? ~ Yes ❑ No, if yes, describe See attached exhibit b DocuStgn Envebpe tD: 69F19488-9C3F~4AC0-9827-7D6887AF0660 Please describe in detail the nature and purpose of this request and state which section of the Planning Code from which you are requesting a variance. (If necessary, attach additional sheets): See attached sheets, exhibit C
NOTICE TO APPLICANT: The applicant must thoroughly answer to the five (5) directives below to make the required findings for the proposed project. If you have difficulty finding reasonable answers to the directives contained in this application it may bean indication that your request has insufficient factors to justify approval. (Do not repeat the directives or provide Yes/No responses. if necessary, attach additional sheets).

3. Explain why the granting of the Variance will not constitute a grant of special privilege inconsistent with the limitations on other properties in the same Zone any relevant Overlay Zone:

4. Describe how granting the Variance would be in conformance with the goals, policies and objectives of the Ciry's General Plan, and purpose and intent of any applicable specific plan and the purposes of the City's Zoning Code:

S. Explain why the granting of the variance would not be materially detrimental to the public welfare, or injurious to the public health, safety, or welfare, or to the interests of residents and property owners nearby the Lot:

DacuSlgn Envelope ID: 89F19488-9C3F-4ACD-9827-7D6687AF066D NOTE:

Non-conforming use of neighboring lands, structures, or buildings shall not be considered grounds for the issuance of a variance.

Is the required site and design plot plans showing the area covered in the legal description and all existing and proposed improvements attached? ~ Yes O No Are the required three (3) area maps attached? ~ Yes ❑ No Is there a certified list attached of names and mailing addresses of all property owners within 300' of the exterior boundaries of the property in this application? D Yes ❑ No Ys the required fee enclosed? ~ Yes ❑ No
Make check or money order payable to: City of Vernon.

I declare under penalty of perjury that to the best of my knowledge and belief the foregoing is true, complete, and accurate.
~:
4/21/2022
or Owner Representative)
(Ijsigned by olher than the Record Owner, written authorization must be attached to this application) DocuSign Emretope Id: 69F194H8-9C3F-4ACD•9827-7D6887AFOB6D Instructions for preparing radius maps for zoning case applications in the City of Vernon
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The following information is required for all radius maps:

1. Prepare the map to a scale of 1"-100'. Show all properties within a 300-foot radius from the exterior boundaries of the subject property. This map shall include information shown on the sample map, including:
1) Streets
2) Street Names
3) Lot Lines
4) Street Address

2. Locate subject property and crosshatch as shown on sample map.

3. Draw a 300-foot radius from each corner of subject property.

4. Mark each property within the 300-foot radius with a number in a circle as shown on sample map. These numbers must correspond to the names on the required property owners list prepared from the tax roll.

5. Show a North Point
DocuSign Envelope ID: 69F19488-9C3F-4ACD-9827-7D8887AF086D

PRELIMINARY REPORT
YOUR REFERENCE: 887753-NK
EXHIBIT "A"

LEGAL DESCRIPTION
Chicago Title Company
ORDER NO.: 00165903-987-OC1-K27

THE LAND REFERRED TO HEREIN BELOW IS SITUATED LOS ANGELES, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND 15 DESCRIBED AS FOLLOWS:

PARCEL 1:

THE EASTERLY 705 FEET OF THAT PORTION OF A PART OF THE NORTHWEST QUARTER OF SECTION 15, TOWNSHIP 2 SOUTH, RANGE 13 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, DESCRIBES AS FOLLOWS:

BEGINNING AT A POINT IN THE WESTERLY LINE OF SANTA FE AVENUE, 80 FEET WIDE, DISTANT 825 FEET SOUTHERLY FROM ITS INTERSECTION WITH THE NORTH LINE OF SAID SECTION; THENCE WEST ALONG THE SOUTH LINE OF BLOCKS 3, 4, 9, AND 10 OF NEW VERNON, AS PER MAP RECORDED IN BOOK 21 PAGES 25 AND 26 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, 2549.55 FEET, MORE OR LESS, TO THE EASTERLY LINE OF TWE 80 FOOT STRIP OF LAND CLAIMED BY THE SOUTHERN PACIFIC RAILROAD COMPANY; THENCE SOUTHERLY ALONG SAID LAST MENTIONED LINE 413 FEET, MORE OR LESS, TO A POINT DISTANT 18.75 CHAINS SOUTHERLY FROM THE NORTH LINE OF SAID SECTION, MEASURED AT RIGHT ANGLES THERETO; THENCE EAST PARALLEL WITH THE NORTH LINE OF SAID SECTION, 2518 FEET, MORE OR LESS, TO A POINT IN THE WEST LINE OF SANTA FE AVENUE THAT IS DISTANT 412.5 FEET SOUTH OF THE POINT OF BEGINNING; THENCE NORTH ALONG SANTA FE AVENUE 412.5 FEET TO THE POINT OF BEGINNING.

EXCEPT THE NORTH 18 FEET THEREOF.

ALSO EXCEPT ThIAT PORTION OF SAID LAND DESCRIBED AS FOLLOWS:

ALL OF SAID LAND SITUATED IN THE CITY OF VERNON, AND BEING A PORTION OF C. M. MOORE'S HOME PLACE, AS SHOWN ON MAP RECORDED IN BOOK 7 PAGE 82 OF MAPS. DESCRIBED AS FOLLOWS:

BEGINNING AT THE POINT OF INTERSECTION OF THE SOUTHERLY LINE OF SAID C. M. MOORE'S HOME PLACE WITH THE WESTERLY LINE OF SANTA FE AVENUE, 80 FEET WIDE; THENCE ALONG SAID SOUTHERLY LINE SOUTH 89° 45' 1T' WEST, 725.02 FEET; THENCE PARALLEL WITH SAlD 1NESTERLY LINE OF SANTA FE AVENUE, NORTH 0° 10' 49" EAST 19.83 FEET; THENCE NORTH 89° 40' 12" EAST 725.03 FEET, MORE OR LESS, TO A POINT IN SAID WESTERLY LINE OF SANTA FE AVENUE; THEf~CE SOUTH 0° 10' 49" EAST 20.90 FEET TO AFORESAID POINT OF BEGINNING.

ALSO EXCEPT THE WESTERLY 232.56 FEET THEREOF.

PARCEL 2:

THE NORTHERLY 18 FEET, MEASURED AT RIGHT ANGLES OF C.M. RAOORE'S HOME PLACE, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 7.

PAGE 82 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPT THAT PORTION OF SAID LAND LYING EAST OF THE WESTERLY LINE OF SANTA FE AVENUE 80 FEET WIDE, AS DESCRIBED IN NOTICE OF ACTION, RECORDED ON MARCH 2, 1909 AS INSTRUMENT NO.347 IN BOOK 42, PAGE 186 OF NOTICE OF ACTIONS, IN THE OFFICE OF THE COUNTY RECORDER.

ALSO EXCEPT THAT PORTION OF SAID LAND LYING WEST OF A LINE PARALLEL TO AND 587.97 FEET EAST OF THE SOUTHERLY PROLONGATION OF THE EASTERLY LINE OF LOT 7 IN BLOCK 4 OF NEW VERNON, AS SHOWN ON MAP RECORDED IN BOOK 4. PAGE 64 OF MAPS, RECORDS OF SAID COUNTY.

CLTA Preliminary Report Forth — ModifEsed (11!17/08) Page 3 DocuSign Envelope ID: 69F19488-9C3F-4ACD-3827-7D6887AFOB6D

EXHIBIT B
Easements) for the purposes) shown below and rights incidental thereto as set forth in a dawment:

Purpose: railroad spur track
Reca~ing Date: April 10,1967
Reoard[ng No: 3424. In Book D-3809 Page 563, of Qffidal Retards Aftet~s: A portion of said land as rtrore parf(cu(atiy described fn seld document The Follawing Matters Af1ed Parcel 2:

Easemenf(s} for the purposes) shown below and rights Incidental thereto as set forth In a document:

Purpose; spur track
Reoordfng No: to Book 18961 Page 93. of 4ffiaal Records Affects: A parti~on of said land as more partlailatly described in said daxrment Easementts) for Cie purposes}shown below and rights incidents! hereto as set forth In a doaiment:

Purpose: spur track
ReoardIrtg Plc: to Rook 22403 Pane 247. d OfRdal R~aa~rds Atf~cts: A portion of said fend ~ rtwre pa~ater%r desatbed in said document An easement for lie purpose shown below and ~ight5 Irtddentat Cter~ato as set foRh (n U7e above rr~tEorted doamenC
Purpose: an ~ctosed sbortn drain
A1~ects: A partlon of said Fend ~ rtwre paRlarlariy daaitred in sal0 document Easernent(s) for tt~e Purposes) shown Detaw artd rights irKidental thereto ss set Tarth to a doa~rtk Purpose: overhead artd undefgrotmd pipes, condutts and wires of ail kinds and the right to pass over, across, upon and a►ong the auRaoe of Use land Recording Date: January 31,1955
ReCotdin~ fYo: 475. of QRk~al Reo~ds
Aff~ts: A patlon at std land as more Par~a~arfy described to said document Esseme~gs) fvr the purposes) shaMm b~aw and rights inddenSet tl~ereto as set fath in a doaurser~ Purpose: overhead and undergraimd pipes, oatdutis and wires ai all kids artd the ttyht to pass over, across, upon ar~d alonfl the suRace at the land Reoot~rtg Date: January 31,1955
Reoor~rsg fdo: 478. of CJf~I Retards
M'ecb: A pa~on of said land as mare parriaDarly described in said doa[marif F~semengs) for fhe Rurpose(s) sham below artd rights Incid~tal thereto as set kith Ina doamsertLPurpose: right oiway far access fncfttdr~g the right to canstrud and malrttain ar cause to be canstruded and malntalned all spur a other track
Recording Date: March 4, 195T
Reoordlrty rlo: 7904_ of Of~dal Records
Affe~s: A patlon of said tared as more par~adarty desatbed In safd doament My fads rt9hts~ [nt~ests or datms whfcfi may exist or arise by reason o! the toUawin~ tads ~sdosed by en ALTA survey, by Cjregay D. Mt~dson, P.L.3.5670, br Moflenhauer Group, dated August 5.2019, as Job No.1.A21188:

The tact that 8n '~erhead Po~Mer Una' Crosses the sautl~easberty Comet Ot su~ect ProP~Y ~Y~9 aide of any easement a1 recoM and as derided on Sheet z of z W said D~ded swreY The fact that e `Roof avefiang' extends orb the soutl~etiy right of way known as 48th ~'tre~t and as derided on Sheet 2 of 2 ai said ~ovkled Stavey dta~Nng.

EXHIBIT C
Please describe in detail the nature and purpose of this request and state which section of the Planning Code from which you are requesting a variance.

We are requesting a variance to the parking, maneuvering, and loading development standards for data centers, found in 17.56 of the Vernon Municipal Code which requires a minimum of one automobile parking space per 1,250 square feet of gross floor area, one truck loading space per 50,000 square feet of gross floor area, and to one truck parking space per 25,000 square feet for the first 100,000 square feet of gross floor area and one truck parking per 100,000 square feet of grow floor area above 100,000 square feet. This code section also prescribes truck maneuvering areas. The requested variance is shown in tabular form below.

Code Variance
Automobile parking spaces (17.56) 209 35
Truck parking spaces (17.56) 5 0
Truck loading spaces (17.56) 5 1
Truck loading space (17.56) 75 ft. 64 ft.

Truck maneuvering area (17.56) 50 ft. unobstructed 45 ft. unobstructed Truck Driveway Entrance (17.56) 40 ft. access width 30 ft. access width Master Plan of Street Req (17.60) 5 ft. dedicated on 48~h St. 0 ft. dedicated on 48'h St.

Master Plan of Street Req (17.60) 48 ft. corner radius at 48"' St. and Santa Fe Ave.
0 ft. corner radius at 48'h St.
and Santa Fe Ave.

Modern Data Centers have evolved to need very little parking for automobiles. Tenants very rarely inhabit the premises with people as the building is purpose built to house server and networking infrastructure. In addition, tenants have architected their digital infrastructure to be managed remotely. The landlord's onsite staff requirement is also very low and limited to maintaining equipment and providing security at the site.

Modern Data Centers have very low loading and unloading requirements. Trucks need access to the site at the start of a lease when a tenant begins installing its servers and networking gear. Typically there is a refresh cycle 3 to 4 years later which requires truck access again. These installations require a truck to unload racks filled with gear that need to be installed and provisioned in the site. The gating factor on these implementations is on-site staff (specialized employees or contractors of the tenant) who are in high demand.

In other words, trucks land gear only as fast as these employees can install it. During the interim periods between lease commencement and server refresh, there is very little truck traffic.

Modern Data Centers have also started to get much larger. For example, in Santa Clara a decade ago the most common footprint was approximately 100,000 ft2. That has now grown to be 250,000 or more. This increase in size is because the greater scale provides large cost savings for tenants. It also provides cost savings for the landlord which can then be passed on to the tenant.

For these reasons, the parking requirements would substantially detract from the marketability of the site as the cost to the tenant would be much higher and the footprint might be so small as to not be attractive to tenants. The variance is required to make this site a viable one for data centers.

1. Describe the special circumstances applicable to the Lot such as size, shape, topography, location or surroundings that do not apply generally to other properties in the same zone and any relevant Overlay Zone;
This site would be the only Modern Data Center use in the area. Modern Data Centers have very little need for automobile or truck parking and access as noted above.

2. Because of the special circumstances applicable to the Lot, explain why the strict application of the applicable Development Standards or Site Planning Standards would deprive the loss of privileges enjoyed by others;
The Code as currently written allows other uses to be economic. Because of the changed demands of Modern Data Centers in the last 10 years, the Code makes the development of Modern Data Centers impractical in Vernon as currently written.

3. Explain why the granting of the Variance will not constitute a grant of special privilege inconsistent with the limitations on other properties in the same Zone any relevant Overlay Zone:

The Variance requested will not lead to overflow street parking nor will it lead to increased traffic. In fact, traffic will be much lower than for other uses. The site with the Variance will have no worse effect on street parking and better effect on traffic. In other words, it will actually improve the area rather than be given a special privilege.

4. Describe how granting the Variance would be in conformance with the goals, policies and objectives of the Cify's General Plan, and purpose and intent of any applicable specific plan and the purposes of the City's Zoning Code:

The Variance will provide significant revenues to the City and County through higher property tax, personal property tax and use tax. The cash flow from these items will help the City meet its financial goals and provide more and better services to its stakeholders. The Variance will allow the owner maximize area to house servers and networking gear which will allow the tenant to bring in more of that equipment. Servers and networking gear are extremely expensive and result in higher personal property taxes for the County and use tax for the City.

At the same time, it does not hurt the City's Zoning Code which aims to reduce on street parking and traffic.

5. Explain why the granting of the variance would not be materially detrimental to fhe public welfare, or injurious to the public health, safety, or welfare, or to the interests of residents and property owners nearby the Lot:

There will be no increased street parking. From that perspective the Variance will have no effect on public health, safety or welfare (no accidents caused by restricted views).

There will be less traffic and that will have a positive effect on public health, safety and welfare. Less traffic often means less accidents.

For property owners nearby, there will be little day to day impact as data centers have few truck loading needs and less traffic than other uses. Data centers in industrial areas anecdotally have been correlated with above average property price stability and increases for all industrial property. From that perspective, it is a good neighborhood amenity for other property owners.

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Date of issue:
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A01-01
City Council Agenda Item Report
Submitted by: Sandra Dolson
Submitting Department: City Clerk
Meeting Date: May 3, 2022

SUBJECT
Approval of Minutes
Recommendation:

Approve the April 19, 2022 Regular City Council meeting minutes.

Background:

Staff has prepared and hereby submits the minutes for approval.

Fiscal Impact:

There is no fiscal impact associated with this report.

Attachments:

1. 20220419 City Council Minutes

MINUTES

VERNON CITY COUNCIL

REGULAR MEETING
TUESDAY, APRIL 19, 2022
COUNCIL CHAMBER, 4305 SANTA FE AVENUE

CALL TO ORDER
Mayor Ybarra called the meeting to order at 9:03 a.m.

FLAG SALUTE
Mayor Ybarra led the Flag Salute.

ROLL CALL
PRESENT:

Melissa Ybarra, Mayor
William Davis, Mayor Pro Tem
Leticia Lopez, Council Member (via remote access)
Crystal Larios, Council Member (via remote access)
Judith Merlo, Council Member
STAFF PRESENT:

Carlos Fandino, City Administrator
Angela Kimmey, Deputy City Administrator
Zaynah Moussa, Interim City Attorney (via remote access) Lisa Pope, City Clerk
Scott Williams, Finance Director
Fredrick Agyin, Health and Environmental Control Director Michael Earl, Human Resources Director
Robert Sousa, Police Chief
Abraham Alemu, Public Utilities General Manager
Todd Dusenberry, Assistant Public Utilities General Manager Manuel Garcia, Deputy Director of Public Works

APPROVAL OF THE AGENDA
MOTION
Council Member Merlo moved and Mayor Pro Tem Davis seconded a motion to approve the agenda. The question was called and the motion carried unanimously.

PUBLIC COMMENT
None.

Regular City Council Meeting Minutes Page 2 of 8
April 19, 2022

PRESENTATIONS

1. Results of the City of Vernon April 12, 2022 General Municipal Election Recommendation: Adopt Resolution No. 2022-09 reciting the facts of the General Municipal Election held on April 12, 2022, declaring the results and such other matters as provided by law.

City Clerk Pope presented the staff report.

MOTION
Mayor Pro Tem Davis moved and Council Member Lopez seconded a motion to adopt Resolution No. 2022-09 reciting the facts of the General Municipal Election held on April 12, 2022, declaring the results and such other matters as provided by law. The question was called and the motion carried unanimously.

City Clerk Pope administered the oath of office to Melissa Ybarra.

Council Member Ybarra thanked the community and her family for supporting her reelection.

The City Council reorganized with Leticia Lopez as Mayor and Crystal Larios as Mayor Pro Tem.

2. Employee Service Pin Awards for March 2022
Recommendation: No action required by City Council. This is a presentation only.

Human Resources Director Earl acknowledged Charles B. Montoya, Metering Technician, Senior; Luis T. Vasquez, Police Officer; Jorrie V. Estrada, Senior Electrical Test Technician; Todd W. Dusenberry, Assistant General Manager of Public Utilities; and Jeff A. Fraga, Gas Systems Technician as the Employee Service Pin Awards recipients for March 2022.

3. Proclamation Recognizing Retiring Employee - Charles B. Montoya Recommendation: Acknowledge and present a proclamation to retiring employee Charles B. Montoya, Metering Technician, Senior in recognition of his dedicated service to the City of Vernon.

Human Resources Director Earl acknowledged Charles B. Montoya on his retirement.

4. DMV/Donate Life California Month
Recommendation: Present a proclamation acknowledging the month of April 2022 as "DMV/Donate Life California Month".

City Clerk Pope read the proclamation and Council Member Ybarra presented the proclamation acknowledging the month of April 2022 as "DMV/Donate Life California Month" to Johnny Lemucchi, OneLegacy Ambassador.

Regular City Council Meeting Minutes Page 3 of 8
April 19, 2022
Mr. Lemucchi, OneLegacy Ambassador, thanked the Council for its recognition and discussed his experience with organ donation.

5. Fiscal Year 2022-2023 Budget Workshop
Recommendation: No action required by City Council. This is a presentation only.

Finance Director Williams presented the staff report.

In response to Council questions, City Administrator Fandino, Finance Director Williams and Deputy Director of Public Works Garcia discussed deferred street maintenance and potential grant funds; and the City’s sunsetting taxes.

Susie Ybarra asked if the taxes would go back to the voters for renewal and discussed the need for additional public safety resources.

Chief Sousa discussed Police Department staffing.

Mayor Lopez left the meeting at 10:02 a.m.

CONSENT CALENDAR
Council Member Ybarra requested Item No. 19 be removed for discussion.

MOTION
Council Member Ybarra moved and Council Member Merlo seconded a motion to approve the Consent Calendar, with the exception of Item No. 19. The question was called and the motion carried 4-0, Mayor Lopez absent.

The Consent Calendar consisted of the following items:

6. Approval of Minutes
Recommendation: Approve the April 5, 2022 Regular City Council meeting minutes.

7. Claims Against the City
Recommendation: Receive and file the claim submitted by Dustin Thomas Phillips in the amount of $18,000.

8. Amendment to Vernon Municipal Code Section 3.32.250 Emergency Purchases
Recommendation: Conduct second reading and adopt Ordinance No. 1279 amending Section 3.32.250 of Title 3 Revenue and Finance of the Vernon Municipal Code regarding emergency purchases.

9. City Payroll Warrant Register
Recommendation: Approve City Payroll Warrant Register No. 790, for the period of March 1 through March 31, 2022, totaling $2,614,799.17 and consisting of ratification of direct deposits, checks and taxes totaling $1,704,566.00 and ratification of checks and electronic fund transfers (EFT) for payroll related disbursements totaling $910,233.17 paid through operating bank account.

Regular City Council Meeting Minutes Page 4 of 8
April 19, 2022

10. Operating Account Warrant Register
Recommendation: Approve Operating Account Warrant Register No. 85, for the period of March 20 through April 2, 2022, totaling $6,280,983.97 and consisting of ratification of electronic payments totaling $4,559,693.50 and ratification of the issuance of early checks totaling $1,721,290.47.

11. Fire Department Activity Report
Recommendation: Receive and file the February 2022 Fire Department Activity Report.

12. Police Department Activity Report
Recommendation: Receive and file the February 2022 Police Department Activity Report.

13. Agreement for Assignment of Non-Consumptive Water Use Permit with the Water Replenishment District of Southern California
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 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; and B. Approve and authorize the City Administrator to execute the Agreement for Assignment of Non- Consumptive Water Use Permit with the Water Replenishment District of Southern California, in substantially the same form as submitted.

14. Proposed Military Equipment Use Policy
Recommendation: Receive and file the draft Vernon Police Department Military Equipment Policy and direct staff to schedule a public hearing for the June 7, 2022 Regular City Council meeting to consider the proposed policy.

15. Police Department Vehicle Purchase
Recommendation: Approve and authorize the issuance of a purchase order to National Auto Fleet Group for a 2022 Ford Ranger through the Sourcewell Master Vehicle Contract (091521-NAF) for approximately $39,000 to replace one patrol vehicle in the Police Department Fleet.

16. Sale of Surplus Vernon Public Utilities Vehicle to Petrelli Electric, Inc.

Recommendation: Approve and authorize the City Administrator to execute the Purchase and Sale Agreement with Petrelli Electric, Inc. (Petrelli Electric), in substantially the same form as submitted, for the sale of one (1) Ford E450 Super Duty Van.

17. Change Order No. 1 to Contract No. CS-1349 with EBS General Engineering Inc., and Notice of Completion for Americans with Disabilities Act (ADA) Improvements at the Intersection of Pacific Boulevard / Vernon Avenue and Santa Fe Avenue
Recommendation: A. Find that the proposed action is categorically exempt under the California Environmentally Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301 (Existing Facilities), part (c) (existing highways, streets and sidewalks), because the project consists of the maintenance, repair, or minor alteration of existing streets for ADA improvements and involves no expansion of an existing use; B. Approve and Authorize the City Administrator to execute Change Order No.1 in the amount of $18,329.15 for unexpected changed conditions in the ADA Improvements at the Intersection of Pacific Blvd. / Vernon Regular City Council Meeting Minutes Page 5 of 8
April 19, 2022
Ave. and Santa Fe Ave. Project (CS-1349); C. Accept the work of EBS General Engineering Inc. as related to City Contract No. CS-1349; and D. Authorize the Director of Public Works to execute and submit the Notice of Completion for the project to the Los Angeles County Recorder’s Office.

18. Blanket Purchase Contract with Cormetech, Inc.

Recommendation: A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use; and B. Authorize issuance of a blanket Purchase Contract in an amount not-to-exceed $200,000 with Cormetech, Inc., for labor and materials to replace the Selective Catalytic Reduction (SCR) catalyst needed at the Malburg Generating Station (MGS) during the MGS Spring 2022 Outage.

The following item was pulled from the Consent Calendar for individual consideration:

19. rPlanet Earth Los Angeles, LLC Request to Consider Items Regarding Electrical Consumption Hurdles
Recommendation: A. Approve and authorize the City Administrator to grant the request from rPlanet Earth Los Angeles, LLC (Customer) to consider that the January 2022 Consumption Hurdle target has been achieved; and B. Approve and authorize the City Administrator to grant the request from rPlanet Earth Los Angeles, LLC (Customer) to waive the third hurdle target of 8 megawatts (MW) and to release the final deposit of $416,667 once the third electrical consumption hurdle of 8MW is met.

City Administrator Fandino and Public Utilities General Manager Alemu explained the hurdle targets.

MOTION
Council Member Ybarra moved and Council Member Davis seconded a motion to:

A. Approve and authorize the City Administrator to grant the request from rPlanet Earth Los Angeles, LLC (Customer) to consider that the January 2022 Consumption Hurdle target has been achieved; and B. Approve and authorize the City Administrator to grant the request from rPlanet Earth Los Angeles, LLC (Customer) to waive the third hurdle target of 8 megawatts (MW) and to release the final deposit of $416,667 once the third electrical consumption hurdle of 8MW is met. The question was called and the motion carried 4-0, Mayor Lopez absent.

NEW BUSINESS

20. Updated Official Statement for City of Vernon Electric System Revenue Bonds, 2022 Series A
Recommendation: Adopt Resolution No. 2022-10 authorizing and approving an updated Official Statement for certain Electric System Revenue Bonds; and authorizing certain other matters relating thereto.

Finance Director Williams presented the staff report.

Regular City Council Meeting Minutes Page 6 of 8
April 19, 2022
MOTION
Council Member Ybarra moved and Council Member Davis seconded a motion to adopt Resolution No. 2022-10 authorizing and approving an updated Official Statement for certain Electric System Revenue Bonds; and authorizing certain other matters relating thereto. The question was called and the motion carried 4- 0, Mayor Lopez absent.

21. Single-Use Foodware Accessories and Standard Condiments Recommendation: A. Find that the proposed action 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 a significant effect on the environment; and CEQA Guidelines Section 15308, because the new regulations, which strengthen requirements for the handling of solid waste, represent actions by a regulatory agency for the protection of the environment; B. Waive full reading and introduce and conduct first reading of Ordinance No. 1280 adding Chapter 8.15 to Title 8 Health and Safety to the Vernon Municipal Code regulating single-use foodware accessories and standard condiments; and C. Direct staff to schedule second reading and adoption for the May 3, 2022 City Council meeting.

Health and Environmental Control Director Agyin presented the staff report In response to Council questions, Health and Environmental Control Director Agyin discussed fines and education.

MOTION
Council Member Merlo moved and Council Member Ybarra seconded a motion to:

A. Find that the proposed action 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 a significant effect on the environment; and CEQA Guidelines Section 15308, because the new regulations, which strengthen requirements for the handling of solid waste, represent actions by a regulatory agency for the protection of the environment; B.

Waive full reading and introduce and conduct first reading of Ordinance No. 1280 adding Chapter 8.15 to Title 8 Health and Safety to the Vernon Municipal Code regulating single-use foodware accessories and standard condiments; and C.

Direct staff to schedule second reading and adoption for the May 3, 2022 City Council meeting. The question was called and the motion carried 4-0, Mayor Lopez absent.

22. Purchase Contract with Performance Contracting, Inc. (PCI) Recommendation: A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use; B. Find that the best interests of the City are served by a direct award of a purchase contract to Performance Contracting, Inc. (PCI), without a Regular City Council Meeting Minutes Page 7 of 8
April 19, 2022
competitive selection process pursuant to Section 3.32.110(B)(2) of the Vernon Municipal Code (VMC); C. Approve the issuance of a Purchase Contract in an amount not-to-exceed $313,836 with PCI for scaffolding and insulation services needed at the Malburg Generation Station (MGS) during the Malburg Spring 2022 Outage (Spring Outage); and D. Authorize the City Administrator to execute Attachment A – Amendment to Purchase Order/Contract (Services) between the City of Vernon and PCI and related proposal for scaffolding and insulation services, as incorporated in the Amendment, in substantially the same form as submitted.

Public Utilities General Manager Alemu presented the staff report.

MOTION
Council Member Ybarra moved and Council Member Davis seconded a motion to:

A. Find that the proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use; B. Find that the best interests of the City are served by a direct award of a purchase contract to Performance Contracting, Inc. (PCI), without a competitive selection process pursuant to Section 3.32.110(B)(2) of the Vernon Municipal Code (VMC); C. Approve the issuance of a Purchase Contract in an amount not-to-exceed $313,836 with PCI for scaffolding and insulation services needed at the Malburg Generation Station (MGS) during the Malburg Spring 2022 Outage (Spring Outage); and D. Authorize the City Administrator to execute Attachment A – Amendment to Purchase Order/Contract (Services) between the City of Vernon and PCI and related proposal for scaffolding and insulation services, as incorporated in the Amendment, in substantially the same form as submitted.

The question was called and the motion carried 4-0, Mayor Lopez absent.

ORAL REPORTS
City Administrator Reports on Activities and other Announcements.

City Administrator Fandino provided an update on odor concerns attributed to rendering facilities; Dodgers Dreamfield Unveiling on April 30, at 10 a.m.; Autism Awareness and Acceptance month; and announced Vernon Clean Up Day on May 7 and Vernon Business Breakfast on May 11, 2022.

City Council Reports on Activities (including AB 1234), Announcements, or Directives to Staff.

Council Member Ybarra congratulated the Vernon Police Department, San Gabriel Police Department and Pasadena City College on winning the Baker to Vegas Run.

Regular City Council Meeting Minutes Page 8 of 8
April 19, 2022

ADJOURNMENT
Mayor Pro Tem Larios adjourned the meeting at 10:35 a.m. ______________________________
LETICIA LOPEZ, Mayor
ATTEST:
__________________________
LISA POPE, City Clerk
(seal)
City Council Agenda Item Report
Submitted by: Lisa Pope
Submitting Department: City Clerk
Meeting Date: May 3, 2022

SUBJECT
Conduct of Meetings via Teleconference Pursuant to Assembly Bill 361 Recommendation:

Ratify the findings in Resolution No. 2021-36 authorizing continued conduct of City Council and all other City legislative body meetings via teleconference, in accordance with Assembly Bill 361 (AB 361), due to continued public health and safety concerns caused by COVID-19.

Background:

Assembly Bill 361 (AB 361) authorizes local agencies to use teleconferencing without complying with the teleconferencing requirements imposed by the Ralph M. Brown Act during a declared state of emergency. At a special meeting on October 21, 2021, the City Council adopted Resolution No. 2021-36 authorizing continued conduct of City Council and all other City legislative body meetings via teleconference, in accordance with AB 361, due to continued public health and safety concerns caused by COVID-19.

Pursuant to AB 361, it is necessary for the City Council to periodically declare that the City’s legislative bodies must continue to meet remotely to ensure the continued health and safety of the public. The City Council most recently ratified the findings of Resolution No. 2021-36 on April 5, 2022.

If the City Council determines the need to conduct meetings remotely still exists, the City Council should ratify the findings in Resolution No. 2021-36.

Fiscal Impact:

There is no fiscal impact associated with this report.

Attachments:

1. Resolution No. 2021-36
RESOLUTION NO. 2021-36

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON

AUTHORIZING CONTINUED CONDUCT OF CITY COUNCIL AND ALL

OTHER CITY LEGISLATIVE BODY MEETINGS VIA TELECONFERENCE, IN ACCORDANCE WITH ASSEMBLY BILL 361 ( AB 361), DUE TO

CONTINUED PUBLIC HEALTH AND SAFETY CONCERNS CAUSED BY
COVID-19
SECTION 1. Recitals.

A. On March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State prepare for a broader spread of COVID-19.

B. On March 17, 2020, the City Council adopted Resolution No. 2020-06 ratifying Emergency Proclamation 2020-01, a proclamation of local emergency due to the serious and imminent threat of the Novel Coronavirus (COVID-19).

C. Also, on March 17, 2020, Governor Newsom issued Executive Order N-29-20, which suspended certain provisions of the Ralph M. Brown Act to allow local legislative bodies to conduct meetings telephonically or by other means. Additionally, the State implemented a shelter-in-place order, requiring all non-essential personnel to work from home.

D. The City Council, Commissions and Committees have utilized remote and hybrid meetings during the state of emergency, ensuring the member's and public's continued access to meetings while ensuring public safety.

E. On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which extended the ability of agencies to hold remote meetings through September 30, 2021, after which agencies anticipated transitioning back to public meetings held in full compliance with the Brown Act.

F. Since issuing Executive Order N-08-21, the Delta variant emerged, causing a spike in COVID-19 cases throughout the state.

G. It is difficult to maintain social distancing requirements for the public, staff, Council Members, Committee Members and Commissioners in their respective meeting locations, therefore, the City of Vernon legislative bodies have utilized a hybrid model of meetings, with some members and the public participating remotely.

H. The Proclamation of a State of Emergency issued by Governor Newsom on March 4, 2020 continues to be in effect.

Resolution No. 2021-36

Page 2 ends

I. On September 16, 2021, Governor Newson signed AB 361, allowing local legislative bodies to continue to meet remotely after the September 30, 2021 expiration of the Governor’s executive orders.

J. Pursuant to AB 361, it is necessary for the City Council to declare every 30 days that the City’s legislative bodies must continue to meet remotely to ensure the health and safety of the public.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS:

SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct.

SECTION 3. The City Council of the City of Vernon hereby approves the continuation of conducting the City Council and all other City Legislative Body meetings remotely due to continued public health and safety concerns caused by COVID-19.

SECTION 4. In compliance with AB 361, and to continue to teleconference without the usual teleconference requirements of the Brown Act, the City Council makes the following findings:
a. The City Council has reconsidered the circumstances of the state of emergency; and
b. The state of local emergency continues to directly impact the ability of the City Council and all other City Legislative Body meetings, as well as staff and members of the public, from meeting safely in person; and c. Health orders require all individuals in public spaces to maintain social distancing and to wear masks when inside public spaces; however, the City cannot maintain social distancing requirements for the Council Members, Commissioners, Committee Members, staff and public in meeting spaces.

SECTION 5. City Council and all other City Legislative Body meetings will continue to be conducted in a hybrid manner including remote and in person participation for the next 30 days in compliance with AB 361, to better ensure the health and safety of the public.

SECTION 6. The City Council will reconsider the above findings and the need to conduct meetings remotely within 30 days of the adoption of this resolution.

SECTION 7. If the City Council determines the need to conduct meetings remotely still exists at each 30-day interval, the City Council will make such findings by minute order.

Resolution No. 2021-36

Page 3 ends

SECTION 8. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.

APPROVED AND ADOPTED this 21st day of October, 2021.

MELISSA YBARRA, Mayor
ATTEST:

LISA POPE, City Clerk
seal)
APPROVED AS TO FORM:

ZAYNAH N. MOUSSA, Interim City Attorney
I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2021-36 was passed and adopted by the City Council of the City of Vernon at the Regular meeting on October 21, 2021 by the following vote:

AYES: 4 Council Members: Lopez, Merlo, Davis, Ybarra
NOES: 0
ABSENT: 1 Council Member: Larios
ABSTAIN: 0
LISA POPE, City Clerk
seal)
City Council Agenda Item Report
Submitted by: Sandra Dolson
Submitting Department: City Clerk
Meeting Date: May 3, 2022

SUBJECT
Single-Use Foodware Accessories and Standard Condiments Recommendation:

Conduct second reading and adopt Ordinance No. 1280 adding Chapter 8.15 to Title 8 Health and Safety to the Vernon Municipal Code regulating single-use foodware accessories and standard condiments.

Background:

At the April 19, 2022 Regular City Council Meeting, the Vernon City Council introduced and conducted first reading of Ordinance No. 1280 which adds Chapter 8.15 to Title 8 Health and Safety to the Vernon Municipal Code regulating single-use foodware accessories and standard condiments.

The ordinance summary was posted on the City's website on April 20, 2022, and will be published pursuant to legal requirements.

Staff requests the City Council conduct second reading and adopt Ordinance No. 1280.

Fiscal Impact:

The ordinance summary will be published pursuant to legal requirements. Adequate funds are available in the Publication/Advertisement Account No. 011.1003.550000.

Attachments:

1. Ordinance No. 1280
ORDINANCE NO. 1280

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON
ADDING CHAPTER 8.15 TO TITLE 8 HEALTH AND SAFETY TO THE

VERNON MUNICIPAL CODE REGULATING SINGLE-USE FOODWARE

ACCESSORIES AND STANDARD CONDIMENTS
SECTION 1. Recitals.

A. The California State Legislature has recognized that littered plastic products have caused and continue to cause significant environmental harm and have burdened local governments with significant environmental cleanup costs (California Public Resources Code Section 42355).

B. Californians Against Waste (CAW) estimates that 561 billion disposable foodware items are used every year in the United States, resulting in 4.9 million tons of waste.

C. CAW further estimates that California’s local governments and taxpayers spend over $428 million annually in ongoing efforts to clean up and prevent litter in public streets, storm drains, parks and waterways.

D. According to the California Coastal Commission, more than 30 percent of all waste collected during its annual beach clean-ups is from disposable foodware and accessories.

E. In October 2021, Governor Newsom signed into law California State Assembly Bill (AB) 1276 which expands on existing law prohibiting restaurants from providing single-use plastic straws unless requested by the consumer, by prohibiting food facilities from providing any single-use foodware accessory or standard condiment, as defined, to a consumer unless requested by the consumer.

F. Single-use foodware accessories, including napkins, straws, condiments, forks, spoons, sporks, knives, and other disposable flatware create waste and environmental hazards, and therefore should only be made available upon request in compliance with AB 1276.

G. Over one hundred municipalities in California have adopted ordinances prohibiting or restricting single-use foodware accessories, which have reduced the volume of single-use foodware accessories in waste streams and throughout the natural environment.

H. AB 1276 requires the City to authorize an enforcement agency to enforce the new state requirements.

I. The City of Vernon seeks to implement AB 1276 by authorizing an enforcement Ordinance No. 1280

Page 2 of 6 ends

_______________________
agency to enforce its requirements prohibiting distribution of single-use foodware accessories and standard condiments unless requested by the consumer on or before June 1, 2022.

THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS:

SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct and are a substantial part of this ordinance.

SECTION 3. This ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The City Council hereby finds that this ordinance is not subject to CEQA in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and CEQA Guidelines Section 15308, because the new regulations, which strengthen requirements for the handling of solid waste, represent actions by a regulatory agency for the protection of the environment.

SECTION 4. Chapter 8.15 to Title 8 Health and Safety is hereby added to the Vernon Municipal Code to read as follows:

Chapter 8.15 Single-Use Foodware Accessory and Standard Condiment Reduction Ordinance

8.15.010 Purpose

8.15.020 Definitions

8.15.030 Requirements for Food Service Vendors

8.15.040 Exemptions

8.15.050 Enforcement and Penalties

8.15.010 Purpose
The City Council finds and declares that the purpose of this Chapter is to comply with AB 1276 and mandate that all single-use foodware accessories and standard condiments be made available upon request only.

8.15.020 Definitions
“AB 1276” means the California State Assembly Bill regulating the distribution of singleuse foodware accessories by food vendors to be made available only upon request of the consumer. The new law applies to plastic and non-plastic single-use foodware items and standard condiments. This law requires the City of Vernon to authorize an enforcement agency on or before June 1, 2022.
“Digital Ordering Platform” means the digital technology provided by an internet website or Ordinance No. 1280

Page 3 of 6 ends

_______________________
mobile application used by customers to order food and/or schedule food delivery. “Food Service Vendor” means any business, organization, entity, group, or individual providing prepared food or beverages for public consumption on or off its premises within the City of Vernon.
“Refillable Self-service Dispenser” means a container or equipment that is used to hold disposable foodware accessories for customers to obtain at their discretion. “Single-use Foodware Accessories” means disposable products intended for single or limited number of uses, used in the restaurant and food service industry for serving or transporting prepared, ready-to-consume food or beverages. Single-use foodware includes, but is not limited to, plates, cups, bowls, trays, hinged or lidded containers, straws, stirrers, lid plugs, lids and utensils. This does not include disposable packaging for unprepared foods.
“Standard Condiment” means relishes, spices, sauces, confections, or seasonings that require no additional preparation and that are usually used on a food item after preparation, including ketchup, mustard, mayonnaise, soy sauce, hot sauce, salsa, salt, pepper, sugar, and sugar substitutes.

8.15.030 Requirements for Food Service Vendors
A. Food Service Vendors shall only distribute single-use foodware accessories and standard condiments upon the request of the customer, unless a local, county or State emergency order is in effect requiring distribution of such single-use foodware accessories and standard condiments. However, employees are not prohibited from asking customers if they would like any single-use foodware accessories or standard condiments and providing the amount requested by the customer.

B. Food Service vendors shall place signs on the premises to inform customers and employees that single-use foodware accessories and standard condiments are offered only upon request.

C. Food Service vendors shall include, in its Digital Ordering Platforms for ordering food, a statement that communicates that single-use foodware accessories are offered only upon request and shall include the ability for customers to select desired foodware accessories or standard condiments. The food service vendor shall customize its menu with a list of available single-use foodware accessories and standard condiments, and only those single-use foodware accessories or standard condiments selected by the consumer shall be provided by the food facility. If a consumer does not select any single-use foodware accessories or standard condiments, no single-use foodware accessory or standard condiment shall be provided by the food facility for delivery of ready-to-eat food.

Ordinance No. 1280

Page 4 of 6 ends

_______________________
D. Food Service Vendors shall instruct employees to inform customers that singleuse foodware accessories and standard condiments are offered only upon request.

E. Food Service Vendors shall not package single-use foodware accessories and standard condiments in a manner that prohibits a customer from taking only the type of single-use foodware accessory or standard condiment desired without also having to take a different type of single-use foodware accessory or standard condiment.

F. Food Service Vendors may ask a drive-through customer if the consumer wants a single-use foodware accessory if the single-use foodware accessory is necessary for the consumer to consume ready-to-eat food, or to prevent spills of or safely transport ready-to-eat food, or to prevent spills of or safely transport ready-to-eat food.

8.15.040 Exemptions
A. This chapter shall not apply to refillable self-service dispensers. FoodService Vendors may therefore make standard condiments and single-use foodware accessories available for customers to obtain as needed. Food Service Vendors are encouraged to use bulk dispensers for the condiments rather than condiments packaged for single-use.

B. This chapter shall not apply to the following institutions or facilities, as defined under California Public Resources Code Section 42273:
a. Correctional institutions, which has the same meaning as in California Penal Code Section 7502.
b. Health care facilities licensed pursuant to Health and Safety Code Section 1250, et seq.or facilities that are owned or operated by a health care service plan licensed pursuant to Health and Safety Code Section 1340, et seq. .
c. Residential care facilities licensed pursuant to Health and Safety Code Section 1200, et seq.
d. Public and private school cafeterias, as referenced in Health and Safety Code Section 113789(b)(1). (1)(b).

8.15.050 Enforcement and Penalties
A. The first and second violations of this chapter shall result in a notice of violation, and any subsequent violation shall be punishable by a fine of twenty-five dollars ($25) for each day in violation, but not to exceed an amount of three hundred dollars ($300) annually.

B. Unless otherwise provided for in this Chapter 8.15, the City’s procedures on imposition of administrative fines, Chapter 1.08, Section 1.08.070, are hereby incorporated in their entirety, as modified from time to time, and shall govern the imposition, enforcement, collection, and review of administrative citations issued to enforce this article and any rule or regulation adopted pursuant to this article, except as Ordinance No. 1280

Page 5 of 6 ends

_______________________
otherwise indicated in this article. This article shall only apply to those entities subject to the City’s regulatory jurisdiction.

C. The Director of Health and Environmental Control, or designee, shall have primary responsibility for enforcement of this chapter and shall have authority to issue citations for violation of any provision of this chapter. The Director of Health and Environmental Control, or designee, may establish regulations or administrative procedures and take any actions reasonable and necessary to further the purposes of this chapter or to obtain compliance with this chapter, including, without limitation, performing an inspection of a retail establishment’s premises to verify compliance with this chapter.

D. The remedies and penalties provided in this chapter are cumulative and not exclusive, and nothing in this chapter shall preclude the City from pursuing any other remedies. The City Attorney may seek legal, injunctive, or any other relief to enforce the provisions of this chapter and any regulation or administrative procedure developed pursuant hereto.

SECTION 5. Any provision of the Vernon Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is repealed or modified to that extent necessary to affect the provisions of this Ordinance.

SECTION 6. If any section, subsection, paragraph, sentence, clause, phrase, or portion thereof, of this Ordinance is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, paragraph, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, paragraphs, sentences, clauses, phrases, or portions thereof, be declared invalid or unconstitutional. To this end, the provisions of this Ordinance are declared to be severable.
/ / /
/ / /
/ / /
Ordinance No. 1280

Page 6 of 6 ends

_______________________
SECTION 7. The City Clerk shall certify the adoption and publish this ordinance as required by law.

APPROVED AND ADOPTED this 3rd day of May, 2022.
_____________________________
LETICIA LOPEZ, Mayor

ATTEST:

LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
___________________________
ZAYNAH N. MOUSSA,
Interim City Attorney
City Council Agenda Item Report
Submitted by: Efren Peregrina
Submitting Department: Finance/Treasury
Meeting Date: May 3, 2022

SUBJECT
Operating Account Warrant Register
Recommendation:

Approve Operating Account Warrant Register No. 86, for the period of April 3 through April 16, 2022, totaling $5,807,716.81 and consisting of ratification of electronic payments totaling $5,604,643.38 and ratification of the issuance of early checks totaling $203,073.43.

Background:

Section 2.32.060 of the Vernon Municipal Code indicates the City Treasurer, or an authorized designee, shall prepare warrants covering claims or demands against the City which are to be presented to City Council for its audit and approval. Pursuant to the aforementioned code section, the City Treasurer has prepared Operating Account Warrant Register No. 86 covering claims and demands presented during the period of April 3 through April 16, 2022, drawn, or to be drawn, from East West Bank for City Council approval.

Fiscal Impact:

The fiscal impact of approving Operating Account Warrant Register No. 86, totals $5,807,716.81. The Finance Department has determined that sufficient funds to pay such claims/demands, are available in the respective accounts referenced on Operating Account Warrant Register No. 86.

Attachments:

1. Operating Account Warrant Register No. 86
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
I hereby cerƟfy that claims and/or demands included in above listed warrantregister have been audited for accuracy and availability of funds for payments andthat said claims and/or demands are accurate and that the funds are available forpayments thereof.____________________________________________________________ScoƩ WilliamsDirector of Finance / City TreasurerDate: _______________________________________________________ This is to cerƟfy that the claims or demands covered by the above listed warrantshave been audited by the City Council of the City of Vernon and that all of saidwarrants are approved for payments except Warrant Numbers:________________________________________________________________________________________________________________________ Printed: 4/26/2022 8:21:56AM
4/26/2022
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
011.1024.593200 $ 100.00 General Law Services 12/21 & 01/22 202112202201202 55 ALVAREZ‐GLASMAN & COLVIN
006865 ‐
011.1024.593200 $ 82.50 LiƟgaƟon Services 12/21~ 20211220256 04/06/2022 12717 $ 182.50
001401 ‐ CENTRAL BASIN MWD 020.1084.500130 $ 37,213.41 Potable & Recycled Water VERFEB22 04/06/2022 12718 $ 37,213.41
005490 ‐ CINTAS CORPORATION 011.1046.540000 $ 218.98 Uniforms 4115088719 04/06/2022 12719 $ 218.98
006198 ‐ JRM 055.9000.596200 $ 12,168.00 Security Services~ 6182 055.8100.596200 $ 73,476.00 Security Services~ 6183
04/06/2022 12720 $ 85,644.00
005034 ‐ KRONOS INCORPORATED 011.9019.590110 $ 900.00 Workforce Central SoŌware 11858343 04/06/2022 12721 $ 900.00
005034 ‐ KRONOS INCORPORATED 011.9019.590110 $ 951.73 SoŌware Usage Fees 11874537 04/06/2022 12722 $ 951.73
LB JOHNSON HARDWARE CO 011.1049.520000 $ 10.03 Small Tools, Plumbing & Building 119942 011.0014915#1 000804 ‐
011.1049.520000 $ 15.31 Small Tools, Plumbing & Building 119945 011.0014915 011.1049.520000 $ 3.27 Small Tools, Plumbing & Building 119963 011.0014915011.1049.520000 $ 35.00 Small Tools, Plumbing & Building 119977 011.0014915 04/06/2022 12723 $ 63.61
Printed: 4/26/2022 8:21:56AM Page 1 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
006869 ‐ LAURENE MASCOLA 011.1060.595200 $ 600.00 Health Officer Services V027 04/06/2022 12724 $ 600.00
MCMASTER‐CARR SUPPLY 055.9100.520000 $ 415.68 Hardware Supplies~ 70223155 055.0002929COMPANY 001150 ‐
055.9100.520000 $ 621.61 Hardware Supplies~ 70358118 055.0002929055.9100.520000 $ 410.44 Hardware Supplies~ 70800474 055.0002929055.9100.520000 $ 1,934.68 Hardware Supplies~ 71128006 055.0002929055.9100.520000 $ ‐408.23 Hardware Supplies~ 71163062 055.0002929055.9100.520000 $ 137.55 Hardware Supplies~ 71946263 055.0002929055.9100.520000 $ 206.22 Hardware Supplies~ 72266811 055.0002929055.9100.520000 $ 250.89 Hardware Supplies~ 72517508 055.0002929 04/06/2022 12725 $ 3,568.84
001447 ‐ TYLER TECHNOLOGIES, INC 011.9019.860000 $ 4,200.00 ERP System (Munis) Upgrade 45368337 011.9019.860000 $ 2,100.00 ERP System (Munis) Upgrade 45368618011.9019.860000 $ 1,400.00 ERP System (Munis) Upgrade 45370051011.9019.860000 $ 6,300.00 ERP System (Munis) Upgrade 45371838011.9019.860000 $ 700.00 ERP System (Munis) Upgrade 45372592011.9019.860000 $ 4,900.00 ERP System (Munis) Upgrade 45372957 04/06/2022 12726 $ 19,600.00
Printed: 4/26/2022 8:21:56AM Page 2 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
WILLIAMS DATA 011.1003.596200 $ 375.00 Storage Services 576056MANAGEMENT 003584 ‐
011.1003.596200 $ 1,578.44 Storage Services 576557
04/06/2022 12727 $ 1,953.44
002458 ‐ ABB, INC 055.9190.500230 $ 154,520.04 3AUA0000234860~ 7105433953 055.0002950 055.9190.500230 $ 154,520.04 3AUA0000234861~ 7105433953 055.0002950055.9190.500230 $ 31,676.61 Sales Tax 10.25 7105433953 04/08/2022 12728 $ 340,716.69
005182 ‐ ANTHEM BLUE CROSS 011.1026.502031 $ 14,163.20 Medical ReƟrees~ 229013498 04/08/2022 12729 $ 14,163.20
Printed: 4/26/2022 8:21:56AM Page 3 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
055.9200.500150 $ 72.37 RecalculaƟon Charges 12/21 202204053154445 791
002412 ‐ CALIFORNIA ISO
055.9200.500170 $ 2,944.93 RecalculaƟon Charges 12/21 202204053154445 791
055.9200.500190 $ ‐632.90 RecalculaƟon Charges 12/21 202204053154445 791
055.9200.500150 $ ‐881.00 RecalculaƟon Charges 04/21 202204053154445 791
055.9200.500170 $ ‐1,556.85 RecalculaƟon Charges 04/21 202204053154445 791
055.9200.500190 $ 1,316.50 RecalculaƟon Charges 04/21 202204053154445 791
055.9200.500150 $ 363,143.47 IniƟal Charges 03/22 202204053154445 791
055.9200.500170 $ 39,474.83 IniƟal Charges 03/22 202204053154445 791
055.9200.500190 $ 15,400.79 IniƟal Charges 03/22 202204053154445 791
055.9200.500210 $ 12,934.87 IniƟal Charges 03/22 202204053154445 791
055.9200.500150 $ 451.64 RecalculaƟon Charges 06/19 202204053154445 791
055.9200.500190 $ 3,616.43 RecalculaƟon Charges 06/19 202204053154445 791
055.9200.500170 $ ‐0.10 RecalculaƟon Charges 06/19 202204053154445 791
055.9200.500170 $ ‐617.37 RecalculaƟon Charges 03/19 202204053154445 791
Printed: 4/26/2022 8:21:56AM Page 4 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
04/08/2022 12730 $ 435,667.61
HAUL AWAY RUBBISH 011.1049.596200 $ 11,761.14 Disposal & Recycling Services 23X08741SERVICE CO, 005350 ‐
04/08/2022 12731 $ 11,761.14
006637 ‐ RUSHER AIR CONDITIONING 055.8400.596200 $ 6,635.00 Air CondiƟoner Maintenance 202202301 055.8400.596200 $ 612.60 Air CondiƟoner Maintenance 2088597 04/08/2022 12732 $ 7,247.60
002190 ‐ OFFICE DEPOT 011.1002.520000 $ 25.52 Office Supplies 219635211001 011.1002.520000 $ 39.65 Office Supplies 219635488001011.9019.520000 $ 28.93 Office Supplies 219635488001 04/07/2022 12733 $ 94.10
000059 ‐ SO CAL EDISON 011.1043.560000 $ 66.95 Period: 03/01/22 ‐ 03/29/22 033022 011.1043.560000 $ 466.59 Period: 03/22 040222
04/06/2022 12734 $ 533.54
001617 ‐ UPS 011.1041.520000 $ 52.32 Period: 03/22 933312132(2) 04/07/2022 12735 $ 52.32
ALL CITY MANAGEMENT 011.1070.596200 $ 2,292.30 School Crossing Guard Services 76333SERVICES 001490 ‐
04/12/2022 12736 $ 2,292.30
005490 ‐ CINTAS CORPORATION 011.1043.540000 $ 218.98 Uniforms 4115782048 04/12/2022 12737 $ 218.98
Printed: 4/26/2022 8:21:56AM Page 5 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
FLEMING ENVIRONMENTAL, 011.1049.590000 $ 650.00 UST Compliance Services 18468INC 004438 ‐
04/12/2022 12738 $ 650.00
GENERAL PUMP COMPANY, 020.1084.900000 $ 145,900.00 Well & Booster Pump Maintenance 29179INC 000147 ‐
04/12/2022 12739 $ 145,900.00
JEMMOTT ROLLINS GROUP, 011.1021.797000 $ 8,100.00 Professional Services~ APR22INC 005108 ‐
04/12/2022 12740 $ 8,100.00
NORTHWEST ELECTRICAL 020.1084.590000 $ 2,850.00 Technical Design Services 1814SERVICES, 005614 ‐
020.1084.900000 $ 55,681.88 Technical Design Services 1814020.1084.900000 $ 855.00 Technical Design Services 1814055.8200.596200 $ 1,425.00 Technical Design Services 1814 04/12/2022 12741 $ 60,811.88
006637 ‐ RUSHER AIR CONDITIONING 055.8400.596200 $ 1,078.09 Air CondiƟoner Maintenance CM10699 04/12/2022 12742 $ 1,078.09
WESTERN ALLIED 011.1049.590000 $ 3,343.00 Air CondiƟoner Maintenance 35542CORPORATION 006120 ‐
04/12/2022 12743 $ 3,343.00
000096 ‐ CITY OF SANTA FE SPRINGS 011.1004.401250 $ 583,104.50 Sales Tax Sharing Agreement~ 041322 04/13/2022 12744 $ 583,104.50
Printed: 4/26/2022 8:21:56AM Page 6 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
001444 ‐ COUNTY OF LOS ANGELES 011.1033.596200 $ 1,260,455.00 Fire ProtecƟon Services~ C0010330 011.1033.596200 $ 112,025.47 Fire ProtecƟon Services~ C0010330011.1033.596200 $ 27,517.60 Fire ProtecƟon Services~ C0010330 04/13/2022 12745 $ 1,399,998.07
ATHENS INSURANCE 011.1026.594200 $ 6,303.75 TPA Fees 04/22 IVC27763SERVICES, INC 004303 ‐
04/15/2022 12746 $ 6,303.75
006722 ‐ AVENU MUNISERVICES, LLC 011.1004.596200 $ 1,875.00 Clearview / STARS Service~ INV06013602 04/15/2022 12747 $ 1,875.00
BEAR ELECTRICAL 011.1043.590000 $ 12,172.65 Traffic Signal Maintenance 15251SOLUTIONS, INC 007026 ‐
011.1043.590000 $ 3,696.00 Traffic Signal Maintenance 15261 04/15/2022 12748 $ 15,868.65
001413 ‐ BLX GROUP, LLC 020.1084.595200 $ 5,000.00 Financial Advisory Services~ 41994367032222 04/15/2022 12749 $ 5,000.00
Printed: 4/26/2022 8:21:56AM Page 7 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
005490 ‐ CINTAS CORPORATION 055.9190.540000 $ 172.35 Uniforms 4112376217 056.5600.540000 $ 68.66 Uniforms 4112376217020.1084.540000 $ 137.25 Uniforms 4112376217055.8000.540000 $ 27.07 Uniforms 4112376217055.8100.540000 $ 153.45 Uniforms 4112376217055.9190.540000 $ 172.35 Uniforms 4113082716056.5600.540000 $ 68.66 Uniforms 4113082716020.1084.540000 $ 138.28 Uniforms 4113082716055.8000.540000 $ 27.07 Uniforms 4113082716055.8100.540000 $ 153.45 Uniforms 4113082716055.9190.540000 $ 162.10 Uniforms 4113744869056.5600.540000 $ 68.66 Uniforms 4113744869020.1084.540000 $ 137.25 Uniforms 4113744869055.8000.540000 $ 27.07 Uniforms 4113744869055.8100.540000 $ 154.48 Uniforms 4113744869055.9190.540000 $ 162.10 Uniforms 4114463856056.5600.540000 $ 68.66 Uniforms 4114463856020.1084.540000 $ 137.25 Uniforms 4114463856055.8000.540000 $ 27.07 Uniforms 4114463856055.8100.540000 $ 153.45 Uniforms 4114463856055.9190.540000 $ 162.10 Uniforms 4115088849056.5600.540000 $ 68.66 Uniforms 4115088849020.1084.540000 $ 137.25 Uniforms 4115088849 Printed: 4/26/2022 8:21:56AM Page 8 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
005490 ‐ CINTAS CORPORATION 055.8000.540000 $ 27.07 Uniforms 4115088849 055.8100.540000 $ 154.48 Uniforms 4115088849
04/15/2022 12750 $ 2,766.24
HAUL AWAY RUBBISH 011.1049.596200 $ 102.00 Disposal & Recycling Services 23X08732SERVICE CO, 005350 ‐
011.1048.596200 $ 638.86 Disposal & Recycling Services 23X08733011.1048.596200 $ 102.00 Disposal & Recycling Services 23X08734011.1049.596200 $ 319.00 Disposal & Recycling Services 23X08735011.1049.596200 $ 102.00 Disposal & Recycling Services 23X08739011.1049.596200 $ 202.00 Disposal & Recycling Services 23X08740 04/15/2022 12751 $ 1,465.86
006422 ‐ MARIPOSA LANDSCAPES, INC 011.1049.590000 $ 3,627.54 Landscape Maintenance 03/22 97161 04/15/2022 12752 $ 3,627.54
001470 ‐ SHAHRAM SHARIFZADEH 055.8100.596700 $ 130.00 Reimb. Water DistribuƟon Renewal 040622 04/15/2022 12753 $ 130.00
Printed: 4/26/2022 8:21:56AM Page 9 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
055.9200.500150 $ ‐41.43 RecalculaƟon Charges 09/20 202204123154502 926
002412 ‐ CALIFORNIA ISO
055.9200.500170 $ ‐638.11 RecalculaƟon Charges 09/20 202204123154502 926
055.9200.500180 $ ‐0.02 RecalculaƟon Charges 09/20 202204123154502 926
055.9200.500190 $ 106.60 RecalculaƟon Charges 09/20 202204123154502 926
055.9200.500150 $ 452,915.11 IniƟal Charges 03/22 202204123154502 926
055.9200.500170 $ 1,658,833.36 IniƟal Charges 03/22 202204123154502 926
055.9200.500190 $ 12,998.28 IniƟal Charges 03/22 202204123154502 926
055.9200.500210 $ 14,934.06 IniƟal Charges 03/22 202204123154502 926
055.9200.500240 $ 9,026.46 IniƟal Charges 03/22 202204123154502 926
055.9200.500180 $ ‐2,194.76 IniƟal Charges 03/22 202204123154502 926
055.9200.500150 $ ‐377.47 RecalculaƟon Charges 12/21 202204123154502 926
055.9200.500190 $ ‐54.07 RecalculaƟon Charges 12/21 202204123154502 926
055.9200.500170 $ 1,798.83 RecalculaƟon Charges 12/21 202204123154502 926
04/15/2022 12754 $ 2,147,306.84
Printed: 4/26/2022 8:21:56AM Page 10 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
001206 ‐ DELL MARKETING LP 011.9019.520010 $ 9,553.50 Spare Laptops~ 10558892610 011.0015150 011.9019.520010 $ 3,463.65 Non‐Taxable from above line item. 10558892610 011.0015150011.9019.520010 $ 75.00 Environmental Fee 10558892610 011.0015150011.9019.520010 $ 990.79 Sales Tax 10.25 10558892610 04/15/2022 12755 $ 14,082.94
000962 ‐ STATE OF CALIFORNIA 011.1043.900000 $ 47,600.00 CondemnaƟon Deposit~ 031622 011.2043.900000 $ 190,400.00 CondemnaƟon Deposit~ 031622 04/07/2022 12756 $ 238,000.00
002190 ‐ OFFICE DEPOT 011.1003.520000 $ 51.53 Office Supplies 226862535001 011.1003.520000 $ 3.77 Office Supplies 226862535002
04/12/2022 12757 $ 55.30
000059 ‐ SO CAL EDISON 011.1043.560000 $ 459.14 Period: 12/21 010322(2) 011.1043.560000 $ 68.86 Period: 01/28/21 ‐ 02/28/22 030222(3)011.1043.560000 $ 476.07 Period: 02/22 030222(4) 04/12/2022 12758 $ 1,004.07
001617 ‐ UPS 011.1041.520000 $ 36.00 Period: 04/22 933312142(2) 04/12/2022 12759 $ 36.00
002190 ‐ OFFICE DEPOT 011.1031.520000 $ 21.26 Office Supplies 230527521001 011.1031.520000 $ 311.07 Office Supplies 233902930001011.1031.520000 $ 25.35 Office Supplies 233915300001 04/14/2022 12760 $ 357.68
Printed: 4/26/2022 8:21:56AM Page 11 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
002190 ‐ OFFICE DEPOT 011.1003.520000 $ 24.53 Office Supplies 226695600001 011.1003.520000 $ 30.77 Office Supplies 226700414001011.1003.520000 $ 16.31 Office Supplies 227499799001011.1003.520000 $ 62.37 Office Supplies 227500301001 04/15/2022 12761 $ 133.98
TOTAL ELECTRONIC $ 5,604,643.38
Printed: 4/26/2022 8:21:56AM Page 12 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
007216 ‐ ABC RESOURCES, INC 011.1043.900000 $ 42,795.00 Sealcoat & Restriping of Lower Level 18364 04/07/2022 609000 $ 42,795.00
007296 ‐ ALTEC AIR, LLC 055.9190.590000 $ 844.00 Maintenance Kit~ 3115504 055.0002939 055.9190.590000 $ 24.60 Freight 3115504 055.0002939055.9190.590000 $ 89.03 Sales Tax 10.25 3115504 04/07/2022 609001 $ 957.63
ASBURY ENVIRONMENTAL 055.9190.596200 $ 1,002.55 Disposal Services I50000802029SERVICES 002308 ‐
055.9190.596200 $ 810.00 Disposal Services I50000804708 04/07/2022 609002 $ 1,812.55
004448 ‐ BATTERY SYSTEMS, INC 011.1046.520000 $ 500.34 Vehicle BaƩeries~ 7423494 011.0014856 011.1046.520000 $ 442.01 Vehicle BaƩeries~ 7454173 011.0014856011.1046.520000 $ 555.27 Vehicle BaƩeries~ 7466654 011.0014856011.1046.520000 $ ‐440.01 Vehicle BaƩeries~ 7466664 011.0014856 04/07/2022 609003 $ 1,057.61
SECRETARY FOR ENV. 011.240010 $ 160.00 3rd Qtr FY 21/22 Surcharge TransmiƩal 040522PROTECTION 003037 ‐
011.240020 $ 3,407.00 3rd Qtr FY 21/22 Surcharge TransmiƩal 040522011.240022 $ 78.00 3rd Qtr FY 21/22 Surcharge TransmiƩal 040522 04/07/2022 609004 $ 3,645.00
Printed: 4/26/2022 8:21:56AM Page 13 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
001973 ‐ CALIFORNIA FRAME & AXLE 011.1046.520000 $ 45.71 Front End Repair & Alignment Services~ 65653 011.0014861 011.1046.590000 $ 130.00 Labor 65653 011.0014861011.1046.520000 $ 481.33 Front End Repair & Alignment Services~ 67547 011.0014861 011.1046.590000 $ 510.00 Labor 67547 011.0014861011.1046.520000 $ 548.96 Front End Repair & Alignment Services~ 67745 011.0014861011.1046.590000 $ 510.00 Labor 67745 011.0014861 04/07/2022 609005 $ 2,226.00
000818 ‐ CAMINO REAL CHEVROLET 011.1046.520000 $ 736.40 Auto Parts~ 70796 011.0014857 011.1046.520000 $ 96.50 Auto Parts~ 70865 011.0014857011.1046.520000 $ 18.55 Auto Parts~ 71154 011.0014857011.1046.520000 $ 148.89 Auto Parts~ 71777 011.0014857 04/07/2022 609006 $ 1,000.34
004163 ‐ CENTRAL FORD 011.1046.520000 $ 262.41 Auto Parts~ 386505 011.0014859 011.1046.520000 $ 938.00 Auto Parts~ 386865 011.0014859011.1046.520000 $ 15.96 Auto Parts~ 387470 011.0014859011.1046.520000 $ 4.06 Auto Parts~ 387471 011.0014859011.1046.520000 $ 245.11 Auto Parts~ 387587 011.0014859011.1046.520000 $ 12.92 Auto Parts~ 387598 011.0014859011.1046.520000 $ 608.05 Auto Parts~ 387831 011.0014859 04/07/2022 609007 $ 2,086.51
Printed: 4/26/2022 8:21:56AM Page 14 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
007145 ‐ DUNCAN WEINBERG GENZER 055.9000.596200 $ 3,757.50 Professional Services~ 36312LSG 056.5600.593200 $ 504.00 Professional Services~ 36313LSG 04/07/2022 609008 $ 4,261.50
005229 ‐ EHS INTERNATIONAL, INC 011.1046.596700 $ 3,600.00 Backhoe Loader Training 319148 04/07/2022 609009 $ 3,600.00
006696 ‐ FACTORY MOTOR PARTS 011.1046.520000 $ 706.35 Auto Parts~ 101392952 011.0014862 011.1046.520000 $ 353.17 Auto Parts~ 109746699 011.0014862011.1046.520000 $ 387.34 Auto Parts~ 124514714 011.0014862011.1046.520000 $ 1,517.18 Auto Parts~ 124550890 011.0014862011.1046.520000 $ 169.87 Auto Parts~ 168057391 011.0014862011.1046.520000 $ 316.91 Auto Parts~ 25784638 011.0014862 04/07/2022 609010 $ 3,450.82
GATEWAY CITIES COUNCIL OF 011.1043.596200 $ 10,000.00 I‐710 Corridor EIR/EIS~ 062821(2)GOVE 000456 ‐
04/07/2022 609011 $ 10,000.00
007107 ‐ GEOTAB USA, INC 011.1046.590000 $ 750.50 GPS ProPlus Plan IN301766 04/07/2022 609012 $ 750.50
000686 ‐ IGOE & COMPANY, INC 011.1026.502030 $ 75.00 ParƟcipaƟon Fee 257992 04/07/2022 609013 $ 75.00
Printed: 4/26/2022 8:21:56AM Page 15 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
LA COUNTY ASSESSOR 011.9019.590110 $ 100.00 SBF Abstract 22ASRE160OFFICE 001792 ‐
04/07/2022 609014 $ 100.00
003908 ‐ LOPEZ & LOPEZ TIRE SERVICE 011.1046.590000 $ 72.00 Labor 5170 011.0014863 011.1046.520000 $ 551.00 Tires, Accessories & Repairs~ 5186 011.0014863011.1046.520000 $ 353.90 Tires, Accessories & Repairs~ 5291 011.0014863011.1046.520000 $ 739.45 Tires, Accessories & Repairs~ 5309 011.0014863011.1046.590000 $ 75.00 Labor 5309 011.0014863 04/07/2022 609015 $ 1,791.35
006170 ‐ MAGIC JUMP RENTALS, INC 011.1070.550000 $ 510.88 Eggstravaganza Event / Slide Rental 333058 04/07/2022 609016 $ 510.88
007025 ‐ METRO EXPRESSLANES 011.1046.590000 $ 5.80 ExpressLanes Tolls 372705455 04/07/2022 609017 $ 5.80
006361 ‐ MJ GLOBAL ENTERPRISE, INC 055.7200.596702 $ 40,630.65 Customer IncenƟve Program 040422 04/07/2022 609018 $ 40,630.65
MRC SMART TECHNOLOGY 011.9019.590110 $ 1,431.13 Managed Print Services IN2564155SOLUTIONS 006203 ‐
04/07/2022 609019 $ 1,431.13
Printed: 4/26/2022 8:21:56AM Page 16 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
000309 ‐ NAPA AUTO PARTS 011.1046.520000 $ 25.17 Auto Parts & Accessories~ 127444 011.0014864 011.1046.520000 $ 215.00 Auto Parts & Accessories~ 127544 011.0014864011.1046.520000 $ 317.23 Auto Parts & Accessories~ 128599 011.0014864 011.1046.520000 $ 94.61 Auto Parts & Accessories~ 128730 011.0014864011.1046.520000 $ 31.21 Auto Parts & Accessories~ 129279 011.0014864011.1046.520000 $ 108.99 Auto Parts & Accessories~ 130413 011.0014864011.1046.520000 $ 144.86 Auto Parts & Accessories~ 130423 011.0014864011.1046.520000 $ 136.44 Auto Parts & Accessories~ 130690 011.0014864011.1046.520000 $ 25.62 Auto Parts & Accessories~ 130750 011.0014864011.1046.520000 $ ‐537.94 Auto Parts & Accessories~ 130828 011.0014864011.1046.520000 $ 52.01 Auto Parts & Accessories~ 131212 011.0014864011.1046.520000 $ 51.95 Auto Parts & Accessories~ 131674 011.0014864011.1046.520000 $ 199.27 Auto Parts & Accessories~ 131693 011.0014864011.1046.520000 $ ‐199.27 Auto Parts & Accessories~ 131878 011.0014864011.1046.520000 $ 121.35 Auto Parts & Accessories~ 131880 011.0014864 04/07/2022 609020 $ 786.50
Printed: 4/26/2022 8:21:56AM Page 17 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
005934 ‐ O'REILLY AUTO PARTS 011.1046.520000 $ 506.78 During the period of July 1, 2021 thru 3049389900 011.0014860 011.1046.520000 $ 77.11 Auto Parts & Accessories~ 3049390121 011.0014860 011.1046.520000 $ 54.84 Auto Parts & Accessories~ 3049390126 011.0014860 011.1046.520000 $ 22.83 During the period of July 1, 2021 thru 3049391034 011.0014860011.1046.520000 $ 10.64 Auto Parts & Accessories~ 3049391580 011.0014860011.1046.520000 $ 42.60 Auto Parts & Accessories~ 3049392411 011.0014860011.1046.520000 $ 283.98 Auto Parts & Accessories~ 3049392510 011.0014860011.1046.520000 $ 457.89 Auto Parts & Accessories~ 3049392534 011.0014860011.1046.520000 $ 210.53 Auto Parts & Accessories~ 3049392584 011.0014860011.1046.520000 $ 42.51 Auto Parts & Accessories~ 3049392585 011.0014860011.1046.520000 $ 308.13 Auto Parts & Accessories~ 3049392688 011.0014860011.1046.520000 $ ‐227.79 Auto Parts & Accessories~ 3049393932 011.0014860 04/07/2022 609021 $ 1,790.05
006612 ‐ QUALIFIED MOBILE, INC 011.1046.590000 $ 967.50 Car Wash Services 294408 04/07/2022 609022 $ 967.50
001638 ‐ SANTOS, DANIEL 011.1031.540000 $ 93.33 Reimbursement for (1) Pair of Uniform 040422 04/07/2022 609023 $ 93.33
001158 ‐ SOUTH COAST AQMD 055.8200.500230 $ 544.37 Annual Renewal 3969620 04/07/2022 609024 $ 544.37
Printed: 4/26/2022 8:21:56AM Page 18 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
000380 ‐ STACY MEDICAL CENTER 011.1026.597000 $ 560.00 Medical Services 1028045834 011.1026.597000 $ 80.00 Medical Services 1028046099
04/07/2022 609025 $ 640.00
WALTERS WHOLESALE 020.1084.900000 $ 5,793.97 Cable~ S119859036001 011.0015158ELECTRIC, CO 002886 ‐
020.1084.900000 $ 593.87 Sales Tax 10.25 S119859036001
04/07/2022 609026 $ 6,387.84
XEROX FINANCIAL SERVICES, 011.9019.590110 $ 2,333.24 Lease Payment~ 3083964LLC 000743 ‐
04/07/2022 609027 $ 2,333.24
ALLIED UNIVERSAL 011.1049.590000 $ 10,656.18 Janitorial Services 04/22 12584168JANITORIAL SE 007276 ‐
04/14/2022 609028 $ 10,656.18
000310 ‐ CRAIG WELDING SUPPLY, CO 011.1043.520000 $ 565.66 Refill Cylinders~ 644351 011.0014897 04/14/2022 609029 $ 565.66
CURRENT WHOLESALE 011.1049.520000 $ 65.60 Electrical & Hardware Supplies~ 272494 011.0014898ELECTRIC SUP 001336 ‐
04/14/2022 609030 $ 65.60
006693 ‐ CWE 011.1043.595200 $ 4,999.00 ConsultaƟon Services~ 22152 04/14/2022 609031 $ 4,999.00
006191 ‐ DATA TICKET, INC 011.1031.594200 $ 466.00 Parking CitaƟon Processing Services 135476 04/14/2022 609032 $ 466.00
Printed: 4/26/2022 8:21:56AM Page 19 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
003065 ‐ HDL COREN & CONE 011.1004.596200 $ 1,250.00 Contract Services Property Tax ~ SIN014517 04/14/2022 609033 $ 1,250.00
HINDERLITER DELLAMAS & 011.1004.596200 $ 336.33 Audit Services ‐ Sales Tax~ SIN013258ASSOC 003076 ‐
04/14/2022 609034 $ 336.33
004000 ‐ ARMANDO HINOJOS 055.8100.596700 $ 80.00 Reimb. Water DistribuƟon Renewal 040622 04/14/2022 609035 $ 80.00
000749 ‐ KENNETH JACKSON 011.1043.520000 $ 70.69 Expense Reimbursement~ 041122 04/14/2022 609036 $ 70.69
LANGUAGE LINE SERVICES, 011.1031.594200 $ 126.27 InterpretaƟon Services 10490757INC 003272 ‐
04/14/2022 609037 $ 126.27
NEWGEN STRATEGIES & 056.5600.596200 $ 3,780.56 Financial Support & Business ~ 13340SOLUTIONS, 006185 ‐
04/14/2022 609038 $ 3,780.56
OCCUPATIONAL HEALTH 011.1026.597000 $ 100.00 Medical Services 74847464CENTERS OF 006586 ‐
04/14/2022 609039 $ 100.00
006612 ‐ QUALIFIED MOBILE, INC 011.1046.590000 $ 1,223.00 Car Wash Services 294629 04/14/2022 609040 $ 1,223.00
Printed: 4/26/2022 8:21:56AM Page 20 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
QUANTUM QUALITY 020.1084.900000 $ 7,475.00 Traffic Engineering Services VE22005CONSULTING, IN 006956 ‐
04/14/2022 609041 $ 7,475.00
001457 ‐ QUINN COMPANY 011.1046.520000 $ 5.30 Drain Plug~ PC810945217 011.0015148 011.1046.520000 $ 1.25 O‐Ring~ PC810945217 011.0015148011.1046.520000 $ 11.53 Freight PC810945217 011.0015148011.1046.520000 $ 0.62 Sales Tax 9.5% PC810945217 04/14/2022 609042 $ 18.70
003775 ‐ SILVA'S PRINTING NETWORK 011.1004.520000 $ 79.00 Business Cards ‐ Jessica Alcaraz~ 27423 011.0015177 011.1004.520000 $ 8.10 Sales Tax 10.25 27423011.1060.520000 $ 147.36 Business Cards ‐ Freddie Agyin 27426 011.0015220 011.1060.520000 $ 147.36 Business Cards ‐ Veronica Petrosyan 27426 011.0015220011.1060.520000 $ 147.36 Business Cards ‐ LizeƩe Sanchez 27426 011.0015220011.1060.520000 $ 147.36 Business Cards ‐ Ruben Zamora 27426 011.0015220011.1060.520000 $ 147.36 Business Cards ‐ Ruben Zamora 27426 011.0015220011.1060.520000 $ 147.35 Business Cards ‐ Tho Do 27426 011.0015220011.1060.520000 $ 90.63 Sales Tax 10.25 27426 04/14/2022 609043 $ 1,061.88
005419 ‐ SUPERIOR CT OF CAL OF LA 011.1031.594200 $ 1,968.50 Parking CitaƟons 02/22 030322 04/14/2022 609044 $ 1,968.50
Printed: 4/26/2022 8:21:56AM Page 21 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
000141 ‐ THOMSON REUTERS ‐ WEST 011.1024.596600 $ 237.35 SoŌware SubscripƟon Charges 846112121 011.1031.596200 $ 1,276.60 SoŌware SubscripƟon Charges 846185791 04/14/2022 609045 $ 1,513.95
006371 ‐ TIREHUB, LLC 011.1046.520000 $ 1,188.00 Tires~ 26390809 011.0015180 011.1046.590000 $ 17.76 FET 26390809 011.0015180011.1046.590000 $ 7.00 California Tire Fee 26390809 011.0015180011.1046.520000 $ 112.86 Sales Tax 9.5% 26390809 04/14/2022 609046 $ 1,325.62
THYSSENKRUPP ELEVATOR 011.1049.590000 $ 669.00 Elevator Service & Maintenance 3006501070CORPORAT 006132 ‐
04/14/2022 609047 $ 669.00
TRI‐CITY MUTUAL WATER 011.1033.560000 $ 225.00 Hydrant 040122COMPANY 000282 ‐
04/14/2022 609048 $ 225.00
006997 ‐ SESPE CONSULTING, INC 011.1060.595200 $ 598.75 Environmental RemediaƟon Services 03/22 1333468 011.1060.595200 $ 2,688.75 Environmental RemediaƟon Services 03/22 1333472 04/14/2022 609049 $ 3,287.50
006081 ‐ YMCA OF METROPOLITAN LA 011.1070.797000 $ 3,540.18 YMCA Sponsorship 3312022 04/14/2022 609050 $ 3,540.18
Printed: 4/26/2022 8:21:56AM Page 22 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
EARLY CHECKS
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT
CHECK
NUMBER

PAYMENT
DATE
001948 ‐ AT&T 011.9019.560010 $ 693.46 Period: 12/20/21 ‐ 01/19/22 012022 011.9019.560010 $ 784.04 Period: 01/20/22 ‐ 02/19/22 022022011.9019.560010 $ 834.34 Period: 02/20/21 ‐ 03/19/21 032022011.9019.560010 $ 684.87 Period: 11/20/21 ‐ 12/19/21 122021 04/14/2022 609051 $ 2,996.71
MONTROSE AIR QUALITY 055.9190.595200 $ 19,541.00 Fieldwork & ReporƟng~ CINV086118SERVICES, 007286 ‐
04/14/2022 609052 $ 19,541.00
TOTAL EARLY CHECKS $ 203,073.43
Printed: 4/26/2022 8:21:56AM Page 23 of 24
CITY OF VERNON
OPERATING ACCOUNT
WARRANT REGISTER NO. 86
MAY 3, 2022
RECAP BY FUNDFUND ELECTRONIC TOTAL EARLY CHECK TOTAL WARRANT TOTAL GRAND TOTALS 011 ‐ GENERAL $ 2,331,592.18 $ 117,602.33 $ 0.00 $ 2,449,194.51020 ‐ WATER 248,187.57 13,862.84 0.00 262,050.41055 ‐ LIGHT & POWER 3,024,520.33 67,323.70 0.00 3,091,844.03 056 ‐ NATURAL GAS 343.30 4,284.56 0.00 4,627.86GRAND TOTAL $ 5,604,643.38 $ 203,073.43 $0.00 $ 5,807,716.81 TOTAL CHECKS TO BE PRINTED 0
Printed: 4/26/2022 8:21:56AM Page 24 of 24
City Council Agenda Item Report
Submitted by: Efren Peregrina
Submitting Department: Finance/Treasury
Meeting Date: May 3, 2022

SUBJECT
Redevelopment Agency Obligation Retirement Account Warrant Register Recommendation:

Approve Redevelopment Agency Obligation Retirement Account Warrant Register No. 64, for the period of January 16 through April 16, 2022 and consisting of ratification of electronic payments totaling $2,332.00.

Background:

Section 2.32.060 of the Vernon Municipal Code indicates the City Treasurer, or an authorized designee, shall prepare warrants covering claims or demands against the City which are to be presented to City Council for its audit and approval. Pursuant to the aforementioned code section, the City Treasurer has prepared Redevelopment Agency Obligation Retirement Account Warrant Register No. 64 covering claims and demands presented during the period of January 16 through April 16, 2022, drawn, or to be drawn, from East West Bank for City Council approval.

Fiscal Impact:

The fiscal impact of approving Redevelopment Agency Obligation Retirement Account Warrant Register No. 64, totals $2,332.00. The Finance Department has determined that sufficient funds to pay such claims/demands, are available in the respective accounts referenced on RDA Obligation Retirement Account Warrant Register No. 64.

Attachments:

1. Redevelopment Agency Obligation Retirement Account Warrant Register No. 64 CITY OF VERNON
RDA OBLIGATION RETIREMENT ACCOUNT
WARRANT REGISTER NO. 64
MAY 3, 2022
I hereby cerƟfy that claims and/or demands included in above listed warrantregister have been audited for accuracy and availability of funds for payments andthat said claims and/or demands are accurate and that the funds are available forpayments thereof.____________________________________________________________ScoƩ WilliamsDirector of Finance / City TreasurerDate: _______________________________________________________ This is to cerƟfy that the claims or demands covered by the above listed warrantshave been audited by the City Council of the City of Vernon and that all of saidwarrants are approved for payments except Warrant Numbers:________________________________________________________________________________________________________________________ Printed: 4/26/2022 8:16:39AM
4/26/2022
CITY OF VERNON
RDA OBLIGATION RETIREMENT ACCOUNT
WARRANT REGISTER NO. 64
MAY 3, 2022

ELECTRONIC
VENDOR NAME AND NUMBER

ACCOUNTNUMBER

INVOICE
AMOUNT DESCRIPTION INVOICE P.O.#

PAYMENT
AMOUNT

PAYMENT
NUMBER

PAYMENT
DATE
002533 ‐ BANK OF NEW YORK MELLON 022.1022.594200 $ 2,332.00 AdministraƟon Fee 2522454923 03/31/2022 47 $ 2,332.00
TOTAL ELECTRONIC $ 2,332.00
Printed: 4/26/2022 8:16:39AM Page 1 of 2
CITY OF VERNON
RDA OBLIGATION RETIREMENT ACCOUNT
WARRANT REGISTER NO. 64
MAY 3, 2022
RECAP BY FUNDFUND ELECTRONIC TOTAL EARLY CHECK TOTAL WARRANT TOTAL GRAND TOTALS 022 ‐ VERNON REDEVELOPMENT AGENCY $ 2,332.00 $0.00 $0.00 $ 2,332.00GRAND TOTAL $ 2,332.00 $0.00 $0.00 $ 2,332.00 TOTAL CHECKS TO BE PRINTED 0
Printed: 4/26/2022 8:16:39AM Page 2 of 2
City Council Agenda Item Report
Submitted by: Cynthia Cano
Submitting Department: Public Works
Meeting Date: May 3, 2022

SUBJECT
Public Works Department Monthly Report
Recommendation:

Receive and file the March 2022 Building Report.

Background:

The attached building report consists of total issued permits, major projects, demolition permits, new building permits and certificate of occupancy status reports for the month of March 2022.

Fiscal Impact:

There is no fiscal impact associated with this report.

Attachments:

1. Public Works Department March 2022 Building Report
Construction
Value
Number of
Permits
Year to Date
Value
Year to Date
Permits
Construction
Value
Number of
Permits
Year to Date
Value
Year to Date
Permits
Permit
Difference
Valuation
Difference
January $ 4,464,611 62 $ 4,464,611 62 $ 1,813,324 29 $ 1,813,324 29 -53% -59% February $ 5,711,149 45 $ 10,175,760 107 $ 2,895,873 31 $ 4,709,197 60 -44% -54% March $ 1,966,225 43 $ 12,141,985 150 $ 4,291,667 42 $ 9,000,864 102 -32% -26% April
May
June
July
August
September
October
November
December
2021 2022 Year to Date
Monthly Report Summary
City of Vernon
Building Division
0 10
20 30
40 50
60 70
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Monthly
2021 Construction Value 2022 Construction Value
2021 Number of Permits 2022 Number of Permits
0 20
40 60
80 100
120
140
160
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Year to Date
2021 Year to Date Value 2022 Year to Date Value
2021 Year to Date Permits 2022 Year to Date Permits
Value
1 10
1 4
3 15
2 6
42 102
$1,966,225.00 43
$10,175,760.00 107
$12,141,985.00 150
City of Vernon
Building Department
Monthly Report from 3/1/2022 to 3/31/2022
Type # of Permits
Demolition $235,000.00
Electrical $1,428,450.00
Grading $25,000.00
Industrial - Remodel $84,500.00
Mechanical $202,800.00
YEAR TO DATE TOTAL $9,000,863.50
Miscellaneous $1,184,190.00
Plumbing $17,000.00
Roof $1,114,727.00
March 2021 TOTALS PERMITS:

PREVIOUS MONTHS TOTAL

PRIOR YEAR TO DATE TOTAL
March 2022 TOTALS PERMITS: $4,291,667.00
PREVIOUS MONTHS TOTAL $4,709,196.50 60
2750 Jewel Avenue

MOBIL OIL CORP
32,006 sf. & 6,045 sf.

City of Vernon
Building Department
Demolition Report - February 2022
None
City of Vernon
Building Department
New Buildings Report - December 2021
City of Vernon
Building Department
Major Projects from 3/1/2022 to 3/31/2022
Valuations > 20,000
Permit No. Project Address Tenant Description Job Value Demolition
B-2022-5179 2750 JEWEL AVE Demolition of (2) buildings 32,006 235000 SF and 6,045 SF and associated
site improvements.

APN 6302001038
1 Record(s) $235,000.00
Electrical
B-2022-5262 4525 DISTRICT BLVD Installation of electrical to 385000 customers equipment machinery
etc.

APN 6304020021
B-2022-5162 4201 FRUITLAND AVE Conveyor system 290000
APN 6304027018
B-2022-5199 2265 38TH ST Electrical - installation of a 270000 groundwater remediation systme
for WRD. Includes installation of
groundwater pump and treat
system.

APN 6302013900
B-2021-5099 3615 VERNON AVE Electrical equipment 30000
APN 6303009015
B-2022-5134 4020 BANDINI BLVD Electrical - Aerial condenser J & M 400000 APN 6304005005 Plant
5 Record(s) $1,375,000.00
Grading
B-2020-4209 5000 FRUITLAND AVE Grading 17000 sft 25000
APN 6313022022
1 Record(s) $25,000.00
Industrial - Remodel
B-2021-5073 2522 37TH ST Remove steel canpy and concrete 40000 APN 6302020038 platform at loading bay
1 Record(s) $40,000.00
Mechanical
B-2021-5122 4545 PACIFIC BLVD Equipment value and installation of 50000 refrigeration equipment for SoCal
curling center
APN 6308008024
B-2022-5198 4740 26TH ST Refrigeration equipment and 150000 installation for a new cooler/freezer
box
APN 6332001004
2 Record(s) $200,000.00
Miscellaneous
1 Permit No. Project Address Tenant Description Job Value B-2022-5202 2750 JEWEL AVE Abatement of all asbestos prior to 40000 demolition. An executed manifest
shall be submitted to the city prior
to final inspection.

APN 6302001038
B-2022-5217 2265 38TH ST Asphalt removal. 45000
APN 6302013900
B-2022-5234 4490 AYERS AVE Remove (6) antennas, (6) RRUs 25000 from tower; install (6) panel
antennas, (6) RRUs on tower.

APN 6304001023
B-2021-4742 4519 EVERETT AVE Metal fence with metal sliding gate 36000 APN 6304022037 and man gate.

B-2022-5241 2905 50TH ST Roof framing repairs 800000
APN 6303024010
B-2022-5177 2250 52ND ST Installation of 115 storage racks. 135000 Total SF = 4,140 and total linear
feet: 1,035.

APN 6308016048
6 Record(s) $1,081,000.00
Roof
B-2022-5204 4460 PACIFIC BLVD Demo existing PVC roofing system 100000 and install new 60 mil TPO roofing
system mechanically fastened.

APN 6308007019
B-2022-5242 5525 SANTA FE AVE Provide and install new 30year 768511 type thermoplastic roof system
over existing TPO roofing system.

APN 6308017043
B-2022-5230 4955 EVERETT CT Perform roof maintenance with 24216 polyester fabric embedded in
asphalt emulsion. Recoat with cool
roof acrylic surfacing, no tear-off
(approximately 183 squares). ICC
ESR #2871. CRRC #0656-0001.

UL #TGFU:R11321.

APN 6304026019
B-2022-5246 2590 HARRIETT ST Reroof permit 120000
APN 5168023019
B-2022-5243 2300 49TH ST Tear off and reroof torch down with 100000 APN 6308015022 cool roof coating.
5 Record(s) $1,112,727.00
2 Permit No. Project Address Tenant Description Job Value 21 Permit(s) Total Valuation: $4,068,727.00
3 17
6 552
16 City of Vernon
Building Department
Status of Certificates of Occupancy Requests
Month of March 2022
Request for Inspection
Approved
Pending
Temporary Occupancies
1 Total for Certificate of Occupancy: 4,310.00 125,043.00 Total Fees 4,310.00 6 Permits(s)
885.00 36155
APN 5168023019
APN 6308001033
C-2022-1883 2590 HARRIETT ST J.C. Produce Inc. Produce distribution 885.00 22088
APN 6302004012
C-2022-1882 2721 46TH ST LA Mazorca De Oror
Coroporation
Corn processing 385.00 800
APN 6308002020
C-2022-1881 2468 26TH ST Angeles Fulfillment Services,
Inc.

Fulfillment, data
processing, lasering
and lettershop
885.00 47500
APN 6304020024
C-2022-1880 2711 FRUITLAND AVE Final Touch Apparel Inc. Warehouse clothing, storage of
women's clothing
and office.
885.00 17000
APN 6302002031
C-2022-1879 4560 LOMA VISTA AVENumark Transportation Transportation/ truck terminal.

Unload and transfer
freight truck
terminal.

Fees Paid Square Feet
Certificate of Occupancy
C-2022-1878 3655 SOTO ST Dolphin Transport Logistic transport 385.00 1500 City of Vernon
Certificate of Occupancy
Applications Date From 3/1/2022 to 3/31/2022
Issued Permit No. Project Address Tenant Description
Permit
No.
3/2/2022
3/10/2022
3/15/2022
3/15/2022
3/15/2022
3/16/2022
3/21/2022
3/21/2022
3/22/2022
City of Vernon
Certificate of Occupancy
Issued Date From 3/1/2022 to 3/31/2022
Issued Project Address Tenant Description Fees Paid Square Feet Certificate of Occupancy
C-2022-1845 5801 ALCOA AVE Green Day Produce, Inc. Warehousing and distribution of
produce
1,770.00 23963
APN 6310006007
C-2021-1664 3655 SOTO ST Dolphin Technical College Office use 385.00 1500 APN 6302002031
C-2018-1128 3130 LEONIS BLVD G & A Investment Inc. Office 385.00 2000 APN 6303025009
C-2019-1275 3624 SOTO ST El Primo Mexican Food Restaurant 385.00 1200 APN 6303004039
C-2022-1850 3021 BANDINI BLVD. LA Cash and Carry, Inc Warehousing and distribution of
general
merchandise
885.00 10738
APN 6303002014
C-2021-1826 2301 38TH ST Finebrand Int. Inc. Warehousing and distribution of
finishing materials
for garments.
385.00 5000
APN 6302014016
C-2022-1876 4154 BANDINI BLVD 88 Logistics Inc. Warehousing and distribution of
general
merchandise
885.00 39560
2000
APN 6304003001
C-2021-1779 2651 45TH ST Elevated Equipment
Supply, Inc.

Warehousing and
distribution of
hydroponic
equipment and
supplies
168,520.00
1,046.00 82559
APN 6308005021
C-2021-1830 4900 50TH ST Trion Inc. Warehousing of
general
merchandise
385.00
Total Fees 6,511.00 9 Permits(s
1 APN 6304011005
Total for Certificate of Occupancy: 6,511.00
City Council Agenda Item Report
Submitted by: Margarita Beltran
Submitting Department: Public Works
Meeting Date: May 3, 2022

SUBJECT
Acceptance of Work and Notice of Completion for Contract CS-1301 - Citywide Striping and Pavement Markings Fiscal Year (FY) 2021-2022
Recommendation:

A. Find that approval of the proposed action is exempt from California Environmental Quality Act (CEQA) review, as it is a governmental administrative activity that will not directly result in physical changes to the environment and is therefore not a "project" as defined by CEQA Guidelines Section 15378;
B. Accept the work of J&S Striping Co, Inc. for City Contract No. CS-1301 – Citywide Striping and Pavement Markings FY 2021-2022; and
C. Authorize staff to submit the Notice of Completion for the project to the County of Los Angeles Recorder’s Office.

Background:

On September 30, 2021, pursuant to section 3.32.060 of the Vernon Municipal Code for purchase contracts, the Finance Department issued City Contract No. CS-1301 – Citywide Striping and Pavement Markings FY 2021-2022 to J&S Striping Co, Inc. in the amount of $48,472. This project consisted of furnishing and installing traffic striping, pavement markers, and pavement markings over existing traffic striping. The project was completed in accordance with the project specifications and City staff expectations.

The notice of completion has been approved as to form by the City Attorney’s Office.

Fiscal Impact:

There is no fiscal impact associated with this report.

Attachments:

1. Notice of Completion - City Contract CS-1301

RECORDING REQUESTED BY AND WHEN
RECORDED, RETURN TO:

City of Vernon
Attention: City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE
For the benefit of City of Vernon
No fee per Government Code Section 27383 APN: N/A

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT, PURSUANT TO CIVIL CODE SECTION 9024:

1. The undersigned is the owner, or corporate officer of the owner, of the interest or estate below in the property hereinafter described.

2. The full name of the owner is: The City of Vernon

3. The full address of the owner is: 4305 Santa Avenue, Vernon, CA 90058

4. The nature of the interest or estate of the owner is: In Fee.

5. A work of improvement on the property hereinafter described was completed and accepted on May 3, 2022.

The work done was: Citywide Striping and Pavement Markings FY 2021-2022, City Contract No. CS-1301.

6. The name of the contractor, if any, for such work of improvement was J&S Striping Co, Inc.

The property on which said work of improvement was completed is in the City of Vernon, County of Los Angeles, State of California, and is described as follows: Traffic striping improvements along various City streets.

Dated: May 3, 2022
I, Daniel Wall, Director of Public Works, verify the foregoing Notice of Completion on behalf of the City of Vernon; I have read said Notice and know the contents thereof; and I have personal knowledge of the facts stated herein. I declare under penalty of perjury that the foregoing is true and correct. _______________________________
Daniel Wall, Director of Public Works
On __________, before me, Lisa Pope, City Clerk for the City of Vernon, personally appeared Daniel Wall, Director of Public Works for the City of Vernon, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf of which he acted, executed the instrument.

WITNESS my hand and official seal.
_________________________________
Lisa Pope, City Clerk
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

City Council Agenda Item Report
Submitted by: Joaquin Leon
Submitting Department: Finance/Treasury
Meeting Date: May 3, 2022

SUBJECT
Quarterly Report of Cash and Investments
Recommendation:

Receive and file the Cash and Investments Report for the quarter ended March 31, 2022.

Background:

On June 15, 2021, City Council adopted Resolution No. 2021-20 approving an Annual Statement of Investment Policy for Fiscal Year 2021-2022 (Investment Policy). The Investment Policy sets forth the course of action necessary to guide the decision making of the City Council, City Treasurer, and those authorized to make investment decisions in the administration of the City’s investment portfolio.

In accordance with the City's Investment Policy, the City Treasurer shall render a quarterly report of investments to City Council. The Cash and Investments Report provides an overview of the City’s cash and investment portfolio which reflects how the City’s investment program meets policy objectives. Staff manages the composition of the investment portfolio, conducting periodic cash flow analyses, and benchmarking portfolio performance. For the quarter ended March 31, 2022, the City's investments are in line with anticipated projections.

As noted in the attached Cash and Investments Report for the quarter ended March 31, 2022, the City's portfolio is in compliance with the City's Annual Statement of Investment Policy and the City has the ability to meet its budgetary expenditure requirements for the next six months. Details are included in the attachment.

Fiscal Impact:

There is no fiscal impact associated with this report.

Attachments:

1. 2022-03 Quarterly Cash and Investments Report

CITY OF VERNON

CASH AND INVESTMENTS REPORT

FOR THE QUARTER ENDED
MARCH 31, 2022

TABLE OF CONTENTS
• Cash and Investments Report – Summary for the Quarter Ended March 31, 2022 o Statement of Compliance of Quarterly Investment Report to City Investment Policy o Statement of ability to meet budgetary expenditure requirements for the next six months
• Cash and Investments Report – Detail Schedule for the Quarter Ended March 31, 2022 City of Vernon
Report of Cash and Investments - Summary
For the Quarter Ended March 31, 2022
CUSIP Purchase Date of Amount Market
Type of Investment Issuer Number Date Maturity PAR Invested Value Market Price Source Cash and Money Market Funds East West Bank N/A N/A N/A $ 105,665,443 $ 105,665,443 $ 105,665,443 East West Bank State Treasurer Pool "LAIF" State Treasurer LAIF N/A N/A N/A 634,722 530,000 634,277 Local Agency Investment Fund Trust Accounts Bank of New York Mellon Trust Company N/A N/A N/A 66,892,711 66,892,711 66,892,711 Bank of New York Mellon Escrow Accounts Bank of New York Mellon Trust Company N/A N/A N/A 65,183,428 65,183,428 65,183,428 Bank of New York Mellon Total Cash and Investments $ 238,376,305 $ 238,271,583 $ 238,375,860 Compliance Statement:

The above portfolio is in compliance with the City's Annual Statement of Investment Policy and has the ability to meet its budgetary expenditure requirements for the next six months.

City of Vernon
Report of Cash and Investments - Detail Schedule
For the Quarter Ended March 31, 2022

FINANCIAL

INSTITUTION ACCOUNT NAME INVESTMENT TYPE INVESTMENT NAME CUSIP
NUMBER

PURCHASE
DATE

DATE OF

MATURITY

FACE VALUE
(PAR)
AMOUNT

INVESTED
MARKET
VALUE

INTEREST
RATE
East West Bank Operating Account Cash Cash N/A N/A N/A 51,764,500.84 $ 51,764,500.84 $ 51,764,500.84 $ 0.05% East West Bank FSA Account Cash Cash N/A N/A N/A 22,699.04 $ 22,699.04 $ 22,699.04 $ 0.02% East West Bank Payroll Cash Cash N/A N/A N/A 813.15 $ 813.15 $ 813.15 $ 0.03% East West Bank Worker's Compensation Account Cash Cash N/A N/A N/A 127,373.50 $ 127,373.50 $ 127,373.50 $ 0.04% East West Bank Liability Insurance Account Cash Cash N/A N/A N/A 1,140.11 $ 1,140.11 $ 1,140.11 $ 0.02% East West Bank Cetera Investments Cash Cash N/A N/A N/A 2,300,587.83 $ 2,300,587.83 $ 2,300,587.83 $ 0.01% East West Bank General Account Money Market Funds Money Market Funds N/A N/A N/A 4,163,760.40 $ 4,163,760.40 $ 4,163,760.40 $ 0.05% East West Bank Federal Funds for Street Improvements Money Market Funds Money Market Funds N/A N/A N/A 1,301,594.65 $ 1,301,594.65 $ 1,301,594.65 $ 0.05% East West Bank Asset Forfeiture-Federal Funding Money Market Funds Money Market Funds N/A N/A N/A 463,445.41 $ 463,445.41 $ 463,445.41 $ 0.05% East West Bank Asset Forfeiture-State Funding Money Market Funds Money Market Funds N/A N/A N/A 78,444.15 $ 78,444.15 $ 78,444.15 $ 0.05% East West Bank Drug Abuse Program Money Market Funds Money Market Funds N/A N/A N/A 5,145.86 $ 5,145.86 $ 5,145.86 $ 0.02% East West Bank SCWP Money Market Funds Money Market Funds N/A N/A N/A 1,839,917.27 $ 1,839,917.27 $ 1,839,917.27 $ 0.05% East West Bank Property Management Money Market Funds Money Market Funds N/A N/A N/A 1,984,458.46 $ 1,984,458.46 $ 1,984,458.46 $ 0.05% East West Bank Water Fund Money Market Funds Money Market Funds N/A N/A N/A 6,042,132.26 $ 6,042,132.26 $ 6,042,132.26 $ 0.05% East West Bank Light & Power AB1890 Cash Cash N/A N/A N/A 0.99 $ 0.99 $ 0.99 $ 0.00% East West Bank Light & Power Account Money Market Funds Money Market Funds N/A N/A N/A 17,320,405.20 $ 17,320,405.20 $ 17,320,405.20 $ 0.05% East West Bank Light and Power Fund Cash Cash N/A N/A N/A 9,878,073.55 $ 9,878,073.55 $ 9,878,073.55 $ 0.05% East West Bank Gas Account Money Market Funds Money Market Funds N/A N/A N/A 3,023,458.39 $ 3,023,458.39 $ 3,023,458.39 $ 0.05% East West Bank CARB Natural Gas Rebates Money Market Funds Money Market Funds N/A N/A N/A 4,867,164.37 $ 4,867,164.37 $ 4,867,164.37 $ 0.05% East West Bank Fiber Optics Fund Money Market Funds Money Market Funds N/A N/A N/A 480,327.54 $ 480,327.54 $ 480,327.54 $ 0.05% East West Bank 105,665,442.97 $ 105,665,442.97 $ 105,665,442.97 $ State of California Local Agency Investment Fund State Treasurer Pool Pooled Money Investment Account N/A 9/30/2003 N/A 634,722.33 $ 530,000.00 $ 634,277.03 $ 0.37% State of California 634,722.33 $ 530,000.00 $ 634,277.03 $ Bank of New York Vernon 21 Electric Cost of Issuance Cash N/A N/A N/A N/A 86,143.69 $ 86,143.69 $ 86,143.69 $ 0.00% Bank of New York Vernon 21 Electric Cap Improv Fd Cash N/A N/A N/A N/A 190,569.28 $ 190,569.28 $ 190,569.28 $ 0.00% Bank of New York Vernon 20 Wtr Acquisition FD Money Market Mutual Funds Dreyfus Trsy Sec CM Admin 582 X9USDTVM2 N/A N/A 8,239,442.48 $ 8,239,442.48 $ 8,239,442.48 $ 0.04% Bank of New York Vernon 20 Wtr Interest Account Money Market Mutual Funds Dreyfus Trsy Sec CM Admin 582 X9USDTVM2 N/A N/A 1,529.72 $ 1,529.72 $ 1,529.72 $ 0.04% Bank of New York Vernon 20 Wtr Revenue Fund Money Market Mutual Funds Dreyfus Trsy Sec CM Admin 582 X9USDTVM2 N/A N/A 1.24 $ 1.24 $ 1.24 $ 0.00% Bank of New York Vernon 20 Electric Cap Improv Money Market Mutual Funds Dreyfus Trsy Sec CM Admin 582 X9USDTVM2 N/A N/A 11,713,133.96 $ 11,713,133.96 $ 11,713,133.96 $ 0.04% Bank of New York Vernon RDA Ind Tab 2005 Surplus Fund Money Market Mutual Funds Invesco Government Agency Private X9USDISLQ N/A N/A 8,809.61 $ 8,809.61 $ 8,809.61 $ 0.26% Bank of New York Vernon Ele Rev 09 Debt Serv Reserve Money Market Mutual Funds Goldman Financial SQ Govt X9USDGFSG N/A N/A 33,981,394.55 $ 33,981,394.55 $ 33,981,394.55 $ 0.01% Bank of New York Vernon Ele Rev 09 Debt Service Fund Money Market Mutual Funds Goldman Financial SQ Govt X9USDGFSG N/A N/A 12,671,686.77 $ 12,671,686.77 $ 12,671,686.77 $ 0.01% Bank of New York Mellon Trust Company (Trust Accounts) 66,892,711.30 $ 66,892,711.30 $ 66,892,711.30 $ Bank of New York City of Vernon Escrow Account Money Market Mutual Funds Invesco Government Agency Private X9USDAIMP N/A N/A 9,660,289.34 $ 9,660,289.34 $ 9,660,289.34 $ 0.03% Bank of New York Vernon Esc '06 Lt & Pwr Stabilization A Money Market Mutual Funds Invesco Government Agency Private X9USDAIMP N/A N/A 38,922,063.05 $ 38,922,063.05 $ 38,922,063.05 $ 0.03% Bank of New York City of Vernon Unrestricted Dep AC Money Market Mutual Funds Morgan Stanley Govt Instl 8302 X9USDMOR3 N/A N/A 16,601,075.97 $ 16,601,075.97 $ 16,601,075.97 $ 0.24% Bank of New York Mellon Trust Company (Escrow Accounts) $ 65,183,428.36 65,183,428.36 $ 65,183,428.36 $ Total Cash and Investments 238,376,304.96 $ 238,271,582.63 $ 238,375,859.66 $ City Council Agenda Item Report
Submitted by: Lilia Hernandez
Submitting Department: City Administration
Meeting Date: May 3, 2022

SUBJECT
Report on Legislative and Regulatory Advocacy Services Contract Approved by the City Administrator
Recommendation:

Receive and file the report.

Background:

Pursuant to Sections 3.32.110 B (2) and (3) of the Vernon Municipal Code (VMC), on April 11, 2022, the City Administrator authorized an agreement with Nielsen, Merksamer, Gross, Leoni, LLP (Nielsen), for legislative and regulatory advocacy services without a competitive selection process based on the determination that the best interests of the City were best served by a direct award. As required by the VMC, the City Administrator is submitting a written report to the City Council detailing the reasons for this finding.

To facilitate efficient and timely remediation of the former Exide battery recycling facility, the City requires a third-party firm to provide legislative and regulatory representation in order to expedite site clean up and redevelopment with the ultimate goal of returning the property to a productive and environmentally safe use. Due to the not-to-exceed amount of the agreement totaling $100,000, staff would typically complete a competitive selection process and issue a Request for Proposals (RFP) in order to select a firm. However, given the time sensitive and complex nature of the work to be performed, coupled with Nielsen’s demonstrated ability to provide the required services, the City Administrator found that it is in the best interest of the City to enter into a contract with Nielsen in order for the work to commence immediately.

Under the direction of the City Administrator, Nielsen is assisting the City in developing and successfully pursuing this legislative priority, working in tandem with the Department of Toxic Substances Control (DTSC) and the United States Environmental Protection Agency (USEPA).

Currently, staff is also working on a comprehensive RFP to seek proposals for Legislative and Regulatory Advocacy Services that may cover this and other areas of interest to the City. The RFP is currently in the draft phase and once finalized will be advertised online and sent directly to prospective vendors as required by the City’s established purchasing process.

Upon the evaluation of proposals received in response to such RFP, staff will then select the best suited firm to continue with the efforts to complete mitigation and redevelopment of the Exide site and returning the site to a productive, beneficial use for the City and the State of California in an expeditious manner.

Fiscal Impact:

The total fiscal impact of the agreement with Nielsen Merksamer is $100,000 with services provided on an "as needed" basis at the direction of the City Administrator. Sufficient funds to cover the cost of the services agreement through the end of the 2021-22 fiscal year (FY) were included and are available in the City Administration budget. Sufficient funds for costs will be budgeted accordingly in City Administration's budget for FY 2022-23.

Attachments:

None.

City Council Agenda Item Report
Submitted by: Adriana Ramos
Submitting Department: Public Utilities
Meeting Date: May 3, 2022

SUBJECT
Amendment to the Laguna Bell-Vernon Interconnection Service Agreement with Southern California Edison Company (SCE)
Recommendation:

Ratify the execution of an Amendment to the Laguna Bell-Vernon Interconnection Service Agreement between the City of Vernon and Southern California Edison Company, in substantially the same form as submitted, to reflect the repowered capacity of the Malburg Generating Station (MGS).

Background:

On September 16, 1997, City Council adopted Resolution No. 7017, approving the Laguna Bell-Vernon Interconnection Service Agreement (Agreement) with Southern California Edison Company (SCE). SCE currently provides transmission service to the city. During a scheduled maintenance outage in 2018 at the Malburg Generating Station (MGS), Siemens Energy Inc. performed an upgrade to the Combustion Turbine (CT) units, CT-1 and CT-2, which increased the generators’ output capacity by a total of five (5) megawatts (MW). On October 13, 2020, Vernon Public Utilities (VPU) staff made Edison aware that MGS had been repowered and capable of producing an additional five (5) MW of power. In order to utilize the increased capacity and have the ability to schedule it onto the electrical grid, the City was required to obtain an Independent Study Process (ISP) from SCE. Consequently, on April 26, 2021, the City Administrator approved the procurement of a Grid Impact Study from SCE and a corresponding report of the results for the California Independent System Operator (CAISO).

Pursuant to Section 3.32.110 (A)(2) and 3.32.110 (B)(1) of the Vernon Municipal Code (VMC), the proposed study was exempt from competitive bidding and competitive selection as SCE is the city’s transmission service provider and therefore the ISP could only be procured through SCE. The scope of work included: planning, studying, and executing a Grid Interconnection Study. On December 3, 2021, SCE completed and finalized the ISP. A corresponding report of the results was submitted to the CAISO. Through the ISP, SCE determined that an Amendment was necessary to amend the Agreement to account for the additional MGS capacity.

SCE recently provided an Amendment to the Agreement to reflect the repowered capacity of MGS from 134 MW to 139 MW. SCE requested the City execute the Amendment and provide a copy to the CAISO before the May 1, 2022 deadline. Due to the time-sensitive nature of this item and to avoid a monetary loss, the City Administrator executed said Amendment, subsequently, VPU is requesting ratification from City Council.

The current market value of capacity is approximately $7.00/Kilowatt-month. With the additional MGS capacity of five (5) MW (5,000 kW), that equates to about $35,000 in monthly revenue to the City and $420,000 in a twelve (12) month period.

The Amendment to the Agreement has been approved as to form by the City Attorney’s Office.

Fiscal Impact:

With the execution of the Amendment, the City will experience an increase in revenue, estimated at approximately $420,000, in the next twelve (12) months.

Attachments:

1. Amendment to Laguna Bell-Vernon Interconnection Service Agreement

Page 1 of 5 ends

AMENDMENT TO THE

LAGUNA BELL-VERNON INTERCONNECTION SERVICE AGREEMENT

BETWEEN

CITY OF VERNON
AND

SOUTHERN CALIFORNIA EDISON COMPANY
THIS AMENDMENT MGS Repower to the Laguna Bell-Vernon
Interconnection Service Agreement (EAK048), dated as of _____, 2022, is entered into by and between: City of Vernon Vernon , a municipal corporation organized and existing under the laws of the State of California, Edison
corporation organized and existing under the laws of the State of California. Edison and Vernon Unless
otherwise defined herein, all capitalized terms shall have the meaning ascribed to them in the Laguna Bell-Vernon Interconnection Service Agreement.

RECITALS
WHEREAS, Edison and Vernon are Parties to the Laguna Bell-Vernon Interconnection Service Agreement between Edison and Vernon, entered into on September 16, 1997, Edison Rate Schedule FERC No. 472, and tracked under tracking number EAK048.

WHEREAS, Vernon owns the Malburg Generation Station , and Edison provides services to the MGS, pursuant to the Laguna Bell-Vernon Interconnection Service Agreement.

WHEREAS, Vernon has repowered the MGS, which increased its capacity.

WHEREAS, Edison and Vernon desire to amend the Laguna Bell-Vernon Interconnection Service Agreement to reflect the repowered capacity of the MGS.

NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, the Parties agree as follows:

AMENDMENT

1. The Parties agree to amend the Laguna Bell-Vernon Interconnection Service Agreement as specifically identified in redline format in Exhibit A, which is attached hereto, reflecting, among other things, the repowered capacity of the MGS, a description of the repowered MGS, and a sketch of the interconnection that connects the MGS to the Edison electrical system. A clean version of the Laguna Bell-Vernon Interconnection Service Agreement conformed to this MGS Repower Amendment is attached hereto as Exhibit B.

2. All terms and conditions of the Laguna Bell-Vernon Interconnection Service Agreement shall remain in effect and in full force except where expressly amended by this MGS Repower Amendment, and the Parties hereto expressly agree to also be bound by these

Page 2 of 5 ends

amended terms. In the event of conflict between the terms and conditions of this MGS Repower Amendment and the Laguna Bell-Vernon Interconnection Service Agreement, the corresponding terms and conditions of this MGS Repower Amendment shall govern.

3. Hereafter, any reference to the Laguna Bell-Vernon Interconnection Service Agreement shall mean the Laguna Bell-Vernon Interconnection Service Agreement as amended by this MGS Repower Amendment.

4. This MGS Repower Amendment shall become effective upon the date this MGS Repower Amendment is fully executed by the Parties and approved by FERC.

5. This MGS Repower Amendment may be executed in one of more counterparts at different times, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same amendment.

6. The signatories hereto warrant and represent that they have been appropriately authorized to enter into this MGS Repower Amendment on behalf of the Party for whom they sign and to bind their respective principals.

IN WITNESS WHEREOF, the Parties have executed this MGS Repower Amendment as of the date listed below.

Southern California Edison Company
By:

Name: Greg Ferree
Title: Vice President, Vegetation Inspections & Operational Services Date: __________
City of Vernon
By: ____________
Name: Carlos Fandino
Title: City Administrator
Date: _____________
ATTEST:
_________________
Lisa Pope, City Clerk
Approved As To Form:
_______________________________________
Zaynah N. Moussa, Interim City Attorney

Page 3 of 5 ends

Exhibit A
MGS Repower Amendment Revisions to the Laguna Bell-Vernon Interconnection Service Agreement Red-Line Format
Title Page
Southern California Edison Company FERC FPA Electric Tariff Tariff Title: Rate Schedule
Tariff Record Title: First Revised Rate Schedule FERC No. 472

LAGUNA BELL-VERNON INTERCONNECTION SERVICE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA EDISON COMPANY
AND

CITY OF VERNON
Contract Effective Date: 7/16/06 Tariff Record Proposed Effective Date:
4/X/20227/26/2019
472.8.0 Version Number: 121.0.0
EAK048 Option Code: A

Page 1 ends

TABLE OF CONTENTS

LAGUNA BELL VERNON INTERCONNECTION SERVICE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA EDISON COMPANY
AND

CITY OF VERNON

1. PARTIES: ................................................................. Error! Bookmark not defined.2

2. RECITALS: .............................................................. Error! Bookmark not defined.2

3. AGREEMENT: ........................................................ Error! Bookmark not defined.3

4. DEFINITIONS: ........................................................ Error! Bookmark not defined.3

5. EFFECTIVE DATE AND TERM:........................... Error! Bookmark not defined.6

6. TRANSMISSION SERVICE: .................................. Error! Bookmark not defined.6

7. ANCILLARY SERVICES: ...................................... Error! Bookmark not defined.7

8. SCHEDULING:........................................................ Error! Bookmark not defined.7

9. METER COMPENSATION: ................................... Error! Bookmark not defined.7

10. OPERATING ARRANGEMENTS: ..................... Error! Bookmark not defined.8

11. LOAD SHEDDING AND CURTAILMENTS: . Error! Bookmark not defined.10

12. 66 KV LINE RESERVATION: .......................... Error! Bookmark not defined.11

13. CHARGES: ......................................................... Error! Bookmark not defined.12

14. BILLING AND PAYMENT: ............................. Error! Bookmark not defined.13

15. FORCE MAJEURE: ........................................... Error! Bookmark not defined.13

16. INDEMNIFICATION: ....................................... Error! Bookmark not defined.14

17. REGULATORY AUTHORITY: ........................ Error! Bookmark not defined.14

18. DISPUTE RESOLUTION PROCEDURES:...... Error! Bookmark not defined.15

19. NO DEDICATION OF FACILITIES: ............... Error! Bookmark not defined.16

20. NO THIRD PARTY RIGHTS:........................... Error! Bookmark not defined.16

21. SALE OR ASSIGNMENT OF TRANSMISSION SERVICE: ... Error! Bookmark not defined.16

22. RELATIONSHIP OF PARTIES: ....................... Error! Bookmark not defined.17

23. SERVICE CONDITIONS: ................................. Error! Bookmark not defined.17

24. NON-WAIVER: ................................................. Error! Bookmark not defined.18

25. SOLE JUDGMENT OR DETERMINATION: . Error! Bookmark not defined.18

26. EFFECT OF SECTION HEADINGS:................ Error! Bookmark not defined.18

27. GOVERNING LAW:.......................................... Error! Bookmark not defined.18

28. NOTICES:........................................................... Error! Bookmark not defined.18

29. SIGNATURE CLAUSE: .................................... Error! Bookmark not defined.19

ATTACHMENT A LIST OF FACILITIES

ATTACHMENT B MAP OF RESERVED FACILITIES

ATTACHMENT C MALBURG GENERATION STATION COMMUNICATIONS

FACILITIES

ATTACHMENT D ADDITIONAL INTERCONNECTION PROJECT FACILITIES ATTACHMENT E DESCRIPTION OF MGS Formatted: Left

Page 2 ends

LAGUNA BELL-VERNON INTERCONNECTION SERVICE AGREEMENT

1. PARTIES:
corporation of the State of California and SOUTHERN CALIFORNIA EDISON ereinafter sometimes referred to

2. RECITALS:

This Agreement is made with reference to the following facts, among others:

2.1. Edison is a utility engaged in the business of generating and transmitting electric energy in the States of Arizona, California, Nevada, and New Mexico. Edison is further engaged in the business of distributing such energy in California.

2.2. Vernon is a municipality engaged in the business of generating and transmitting electric energy in the States of Arizona, California, and Nevada. Vernon is further engaged in the business of distributing electricity.

2.3. conducted the Electric Utility Restructuring Proceeding, CPUC Docket No.

R.94-04 031/I.94-04-032, resulting in a decision providing for the restructuring of electric utility operations of investor-owned utilities in California.

2.4. The Commission is conducting proceedings in Docket Nos. ER96-1663, EC96- 19, and ER97-2355 which concerns the terms and conditions that will be applicable to such restructured electric utility operations.

2.5. h was
signed into law by the Governor on September 20, 1996. A.B. 1890 is codified in Sections 330ff of the California Public Utilities Code (Supp. 1997). A.B. 1890 provides for restructuring of electric utility operations of investor-owned utilities in California, and authorizes and directs the CPUC and such utilities to proceed to restructure.

2.6. A.B. 1890 introduces competition and customer choice for customers of investor-owned utilities into the California electric utility market. Two new institutions are intended to accomplish the transition to the restructured industry with the ISO assuming operational control of the transmission grid and the Power Exchange inaugurating a competitive spot market for electricity.

2.7. Edison currently provides transmission service to Vernon between certain points Point of Interconnection with Vernon. Some terms and conditions for

Page 3 ends

re
-7.7 for
service to Vernon.

2.8. The Parties have entered into the 1997 Restructuring Agreement, to which this Agreement is attached as Appendix F, which fundamentally changes the relationship of the Parties.

2.9. As part of the 1997 Restructuring Agreement, the Parties have agreed, among other things, to terminate partial requirements service and to separate the terms and conditions for wholesale transmission service (presently provided by Edison to Vernon in accordance with existing firm transmission service agreements) 220 kV bus and the points of delivery or receipt, as defined in the Existing Transmission Contracts, as amended.

2.10. The Parties, therefore, wish to restate in this Agreement the terms and conditions of current services for transmission between Laguna Bell and the Point of Interconnection and for the interconnection of

2.11. On October 13, 2020, Vernon made Edison aware that Malburg Generation MGS had been repowered and is now capable of producing an additional five (5) MW of power, and provided an application to increase the capacity of the project, under this Agreement. The application to increase the capacity of MGS is tracked under tracking number WDT1723. On September 22, 2021, Edison determined that the data package was complete and repower of the MGS.

2.12. Edison documented its findings from the analysis of the MGS repower in a December 3, 2021.

2.13. Accordingly, the Parties wish to amend the Agreement to account for the additional MGS capacity and to include a description of MGS.

3. AGREEMENT:

The Parties agree as follows:

4. DEFINITIONS:

The following terms, when used herein with initial capitalization, whether in the singular or the plural, shall have the meanings specified:

4.1. 1997 Restructuring Agreement: The Edison-Vernon 1997 Restructuring Agreement between Edison and Vernon to which this Agreement is attached and incorporated therein as Appendix F.

Formatted: Outline numbered + Level: 2 + Numbering
Style: 1, 2, 3, + Start at: 1 + Alignment: Left + Aligned at:

0.19" + Tab after: 0.59" + Indent at: 0.59"

Page 4 ends

4.2. Additional Interconnection Project Facilities: The facilities described in Attachment D required by Edison to provide a new point of interconnection via the tapping of the existing Laguna Bell Leonis No. 1 66 kV line in order for Vernon to connect and service a new Vernon substation with a 30 MVA maximum load demand.

4.3. Additional Interconnection Project Facilities Charge: The monthly charge to Vernon to recover the revenue requirements for the Additional Interconnection Project Facilities, calculated as the product of the Customer-Financed Monthly Rate and the cost of the Additional Interconnection Project Facilities.

4.4. Agreement: This Laguna Bell-Vernon Interconnection Service Agreement.

4.5. Ancillary Services: Regulation, Spinning Reserve, Non- Spinning Reserves, Replacement Reserves, Voltage Support and Black Start as those services are defined in the ISO Tariff or, if the ISO Tariff is modified or terminated, any new or comparable services required by the operator of the Control Area in which Vernon is located. Ancillary Services do not include services voluntarily elected by Vernon, but not required by the Control Area in which Vernon is located. Ancillary Services do not include transmission losses or ISO grid management charges.

4.6. Commission: The Federal Energy Regulatory Commission or its successor.

4.7. Control Area: An electric power system (or combination of electric power systems) to which a common automatic generation control scheme is applied in order to: (i) match generation with load within the electric power system(s); (ii) maintain scheduled interchange with other control areas within the limits of Good Utility Practice; (iii) maintain frequency of the electric power system(s) within reasonable limits in accordance with Good Utility Practice; and (iv) provide sufficient generating capacity to maintain operating reserves in accordance with Good Utility Practice.

4.8. Curtail or Curtailment: A reduction in Transmission Service in response to a Transmission System capacity shortage as a result of system reliability conditions.

4.9. Customer-Financed Monthly Rate: The rate most recently adopted by the California Public Utilities Commission, or its regulatory successor, for -finance added
facilities, which does not compensate Edison for replacement of added facilities. The Customer-Financed Monthly Rate is shown in Attachments C and D.

4.10. Edison MGS Communications Facilities: The facilities described in Attachment C to be owned, operated and maintained by Edison in order to provide real-time data from the Malburg Generation Station to Edison.

4.11. End-Use Customer: A customer that takes final delivery of electric power and does not resell the power.

4.12. Generation: The capacity and energy delivered from a Resource.

Page 5 ends

4.13. Good Utility Practice: Any of the practices, methods, and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods, and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety, and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the Western System Coordinating Council region.

4.14. ISO: The California Independent System Operator Corporation, as defined in the ISO Tariff, or its successor.

4.15. ISO Grid: The system of transmission lines and associated facilities that are riff.

4.16. ISO Tariff: The ISO Operating Agreement and Tariff filed with the Commission in Docket Nos. EC96-19 and ER96-1663 as it may, from time to time, be amended, revised, or superseded.

4.17. ISO-Approved Meters: The meters, including communication and appurtenant equipment, that meet the ISO criteria and are owned, operated, and maintained

4.18. Laguna Bell 220 kV Interconnection Point: The points at which the 220/66 kV transformer bank circuit breakers at Laguna Bell are connected to the north and south 220 kV busses.

4.19. Malburg Generation Station (MGS): 139 MW 134 MW (nominal) natural gas4.20. MGS Communications Facilities Charge: The monthly charge to Vernon to recover the revenue requirements for the Edison MGS Communications Facilities, calculated as the product of the Customer-Financed Monthly Rate and the cost of the Edison MGS Communications Facilities.

4.21. Gage and Garfield Avenues in the City of Commerce, California.

4.22. Load Shedding: The systematic reduction of system demand by temporarily decreasing load.

4.23. Point of Interconnection: The point where the 66kV electrical conductors of Edison connect with those of Vernon at or near the city limits of Vernon.

4.24. Power Customers: The wholesale and retail power customers of Edison on whose behalf Edison, by statute, franchise, regulatory requirement, or contract, System to meet the reliable electric needs of such customers.

Page 6 ends

4.25. Cities of Commerce, Huntington Park, and Maywood, disconnected from Laguna Bell-P.S.20-P.S.38 66 kV line. The approximate location of the Reserve Facilities is shown on Attachment B.

4.26. Resource: Any generating facility that is capable of producing and delivering energy to the ISO Grid.

4.27. Third Party: (i) Any entity which is eligible to apply to the Commission, under Subsection 2l1(a) of the Federal Power Act, for an order requiring a transmitting utility to provide transmission services, or (ii) any entity located within the municipal boundaries of the City of Vernon that is defined as an eligible customer in the ISO Tariff.

4.28. Transmission Service: The wholesale transmission service provided under this Agreement.

4.29. Transmission System: Those transmission facilities or their replacements or betterments owned by Edison between the Point of Interconnection and the Laguna Bell 220 kV Interconnection Point. Such facilities are shown on Attachment A.

4.30. Vernon MGS Communications Facilities: The facilities described in Attachment C to be owned, operated and maintained by Vernon in order to provide real-time data from the Malburg Generation Station to Edison.

4.31. Wholesale Transmission Load: The End-Use within
the municipal boundaries of the City of Vernon that is served from transmission and distribution facilities that Vernon owns or controls to deliver capacity and energy.

5. EFFECTIVE DATE AND TERM:

5.1. This Agreement shall become effective on the effective date of the 1997 Restructuring Agreement; provided, however, that, if upon filing the 1997 Restructuring Agreement, the Commission enters into a hearing to determine whether this Agreement or the 1997 Restructuring Agreement is just and reasonable, this Agreement shall not become effective until the date when an order no longer subject to judicial review has been issued by the Commission determining this Agreement and the 1997 Restructuring Agreement to be just and reasonable without changes or new conditions unacceptable to either Party.

5.2. This Agreement, and Transmission Service made available hereunder, shall not terminate prior to January 1, 2003. Beginning on January 1, 2001, Vernon may ice to terminate this Agreement. If Vernon
terminates this Agreement and no longer takes service from the Transmission System using the 66 kV Lines and Metering Facilities identified on net book
value at the time of termination, less net salvage, for such Facilities then

Page 7 ends

included in the Transmission System. If Vernon makes such payment to Edison, Edison shall dismantle the 66 kV Lines and Metering Facilities identified in Attachments A and B within six months of such payment.

6. TRANSMISSION SERVICE:

6.1. Beginning on the effective date of this Agreement and continuing until termination of this Agreement, Edison shall provide firm bidirectional Transmission Service over its Transmission System for the transportation of Generation between the Laguna Bell 220 kV Interconnection Point and the Point of Interconnection in accordance with this Agreement. The amount of firm Transmission Service provided for in this Agreement is the maximum electrical energy transfer ability of the Transmission System under operating conditions existing at the time and in accordance with Good Utility Practice.

6.2. During the term of this Agreement, except for those shared facilities (see Attachment A) used to provide service b -Use
Customers and to Vernon, the Transmission System shall be reserved for at the Point of Interconnection from those existing qualifying facilities located within the City of Vernon that are under contract to sell power to Edison as of the date of execution of this Agreement and to have such energy delivered pursuant to such existing contract at the Laguna Bell 220 kV Interconnection Point with no charges thereof or from Vernon.

6.3. Edison is not responsible for providing real power losses associated with Transmission Service under this Agreement. The Vernon revenue meters at Laguna Bell shall be compensated to the Laguna Bell 220 kV Interconnection Point in accordance with Section 9.

6.4. Transmission Service made available pursuant to this Agreement may be interrupted or curtailed in accordance with Section 11.

6.5. Edison shall plan, construct, operate and maintain its Transmission System in accordance with Good Utility Practice in order to provide Vernon with Transmission Service. Edison shall include Wholesale Transmission Load and Generation in its Transmission System planning and shall, consistent with Good Utility Practice, endeavor to construct and place into service sufficient Transmission System facilities consistent with this Agreement. In the event Edison is prevented from constructing such facilities, Vernon shall have the right to construct them.

7. ANCILLARY SERVICES:

Vernon shall be responsible to provide or cause to be provided Ancillary Services as required by the ISO.

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8. SCHEDULING:

Vernon shall submit to the ISO in accordance with the requirements set forth in the ISO e
contracts and Transmission Service.

9. METER COMPENSATION:

9.1. The Vernon revenue meters are currently compensated to the Point of Interconnection. On the Effective Date of this Agreement, the compensation of the meters shall be changed to the Laguna Bell 220 kV Interconnection Point.

9.2. The amount of compensation to be applied to the metering to compensate it to the Laguna Bell 220 kV Interconnection Point shall be .335 percent. Such percentage shall be subject to change from time to time pursuant to Section 17.3.

9.3. Vernon shall have the option to require Edison to install new revenue meters capable of compensating for losses using real-time losses and a loss formula.

Vernon shall pay for all costs associated with the purchase and installation of such meters and associated communications equipment. If such meters are installed, the loss formula to be used shall be filed with the FERC in accordance with Section 17.3.

10. OPERATING ARRANGEMENTS:

10.1. Vernon shall plan, construct, operate and maintain its facilities in accordance with Good Utility Practice.

10.2. Vernon shall maintain its power factor at the Laguna Bell 220 kV Interconnection Point within the range required by the ISO Tariff for loads recorded real power (watts) and reactive power (vars) flows compensated to the power factor correction devices located at Laguna Bell Substation. The amount of vars from the power factor correction devices shall be the amount necessary correction devices is initially 54.6 megavars.

10.3. Metering and Communications Equipment:

10.3.1. Edison shall install, own, and maintain revenue quality meters to measure and record real power (watts) and reactive power (vars) (collectively, the rections at Laguna Bell and shall meet
the requirements of the ISO.

10.3.2. Generation located in Vernon for delivery to the ISO Grid shall be added to such meter data, without compensation for losses.

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10.3.3. The ISO-Approved Meters shall be tested by Edison as required by the ISO Tariff. Edison shall notify Vernon at least 3 business days in advance of any meter test unless required on shorter notice by the ISO. Vernon shall be afforded the opportunity to be present during any meter test.

Edison shall immediately repair, adjust, or replace any meter or associated equipment found to be defective or inaccurate and shall attempt to notify Vernon of such required work prior to such work.

10.3.4. Vernon and Edison shall install communications facilities, equipment, and software to s
Vernon municipal boundaries and Wholesale Transmission Load connected to the Transmission System, to exchange data, and for any other purpose as reasonably required to implement the provisions of this Agreement in accordance with Good Utility Practice.

10.3.5. All metering, communications, and data exchanges required to implement this Agreement shall be automated to the greatest extent practical. The Operating Representatives as defined in Section 10.5 shall coordinate standards and specifications for metering and communications equipment as well as any related hardware and software required to implement this Agreement, provided such metering and communications equipment and any related hardware and software
existing or planned facilities or software, meet all applicable ISO, Western Utility Practice.

10.3.6. Vernon shall procure, install and maintain, at its sole expense, communications equipment, and any related hardware and software required to be installed on its system in accordance with this Agreement.

This obligation shall include without limitation, the maintenance, repair and testing of the Vernon MGS Communications Facilities in accordance with Attachment C of this Agreement. Vernon shall reimburse Edison for all reasonable expenses incurred by Edison for any metering and communications equipment and related hardware and software, including any reasonable modifications to existing facilities or software required for Edison to provide service in accordance with this Agreement. Except as provided in Sections 9.3, any additions, replacements or improvements to such Edison facilities shall be recovered in accordance with Sections 13.1 and 17.2.

10.4. 10.4.1. Vernon shall keep Edison informed on a timely basis of changes in Wholesale Transmission Load and cooperate in planning any addition to or upgrade of facilities to accommodate load growth or additions. Vernon shall provide to Edison by September 1 of each year a good faith, but nonbinding five year forecast of monthly load requirements and interruptible load.

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10.4.2. Edison shall own, operate and maintain all facilities on its side of the Point of Interconnection in accordance with Good Utility Practice. Edison shall operate and maintain protective equipment on its system in accordance with Good Utility Practice.

10.4.3. Vernon shall provide and maintain, at its sole expense, facilities on its side of the Point of Interconnection in accordance with Good Utility Practice.

Vernon shall install protective equipment on its system and take any other reasonable measures t

10.4.4. Tariff, and such power factor requires Edison to take corrective actions on its Transmission System, then Edison at its option may install capacitors installation and ongoing ownership costs, provided that Vernon shall first have the opportunity within 120 days after written notice from Edison to installed pursuant to this Section 10.4.4 shall be considered additions or improvements in accordance with Section 17.2. Likewise, if Edison installs power factor correction devices because the power factor associated with the load served through Laguna Bell excluding the Wholesale Transmission Load requires such corrective action, Edison shall be responsible for 100% of the cost.

10.4.5. Edison shall notify Vernon of any scheduled maintenance to any Transmission System facility and shall cooperate with Vernon in taking any Transmission System facility out of service for scheduled maintenance.

10.5. Each Party shall appoint an Operating Representative to facilitate communication between the Parties, exchange data on forecasted Wholesale Transmission Load or Resources located within the municipal boundaries of the City of Vernon necessary for long-term planning, coordinate operating criteria and activities, develop detailed operating procedures as necessary, and address other technical and operational considerations required to implement this Agreement. The Operating Representatives shall not have any authority to modify, amend, terminate, or supersede any provision of this Agreement; or to

10.6. Vernon shall, upon request, provide Edison with such reports and information concerning its operation as are reasonably necessary to enable Edison to operate the Transmission System safely and efficiently.

11. LOAD SHEDDING AND CURTAILMENTS:

11.1. During any period when Edison determines that a constraint exists on all or a portion of its Transmission System, and that such constraint may impair the reliability of its Transmission System, Edison will take actions, consistent with

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Vernon City CouncilMay 3, 2022

Vernon City Council
May 3, 2022