Vernon — 2026-02-17

1.\nEmployee Service Pin Awards\nRecommendation:\nRecognize January 2026 Employee Service Pin Award.\nCONSENT CALENDAR\nAll matters listed on the Consent Calendar may be approved with one motion. Items may be\nremoved from the Consent Calendar for individual consideration. Removed items will be\nconsidered immediately following the Consent Calendar.

10.\nAdditional Funds for Contract No. 20230172 With RAMCO General Engineering\nContractors, Inc. (RAMCO) and Mega Renovation, Inc. (Mega)\nRecommendation:\nA. Find that the proposed action is categorically exempt from California Environmental\nQuality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because\nthe work consists of the maintenance, repair or minor alteration of existing structures and\ninvolves negligible or no expansion of an existing use; and\nB. Approve $55,391 in additional funds for Contract No. 20230172 with RAMCO and Mega\nfor on-call general contractor and minor construction services provided.\nNEW BUSINESS

11.\nClean Energy Savings Plan for Renewable Energy and Supporting Agreements\nRecommendation:\nA. Find that the proposed action is a purely administrative and financial transaction that\nwould not cause either a direct physical change in the environment or a reasonably\nforeseeable indirect physical change in the environment, and therefore is not a “project” as\ndefined in Section 21065 of the California Environmental Quality Act (CEQA) Guidelines and\nsuch activity is not subject to CEQA under Section 15060(c)(2) and (c)(3) and Section\n15378;\nB. Adopt Resolution No. 2026-006 approving and authorizing the City Administrator to\nexecute those interrelated agreements (Prepay Agreements) to which the City is a party, in\nsubstantially the same form as submitted, with such changes as the City Administrator\ndeems necessary or advisable in furtherance of the purposes of this resolution, for\nparticipation in a clean energy savings renewable energy transaction that will create a\ndiscount for the City of Vernon (City) in its purchase of certain renewable energy including:\n1. A Limited Assignment Agreement (Antelope DSR—Vernon) (the Antelope DSR LAA)\namong Antelope DSR 1, LLC (Antelope DSR), the Southern California Public Power\nAuthority (SCPPA) and J. Aron & Company (J. Aron), providing for SCPPA to assign certain\nof its rights and obligations to receive and pay for renewable energy and associated\nresources under the Power Purchase Agreement, dated as of July 16, 2015 (the Antelope\nDSR PPA), between Antelope DSR and SCPPA, which rights and obligations relate to the\nPower Sales Agreement, dated as of July 16, 2015, between SCPPA and the City;\n2. A Limited Assignment Agreement (Astoria—Vernon) (the Astoria LAA) among Re Astoria\n2 Solar LLC (Astoria), SCPPA and J. Aron, providing for SCPPA to assign certain of its rights\nand obligations to receive and pay for renewable energy and associated resources under the\nPower Purchase and Sale Agreement, dated as of July 23, 2014 (the Astoria PPA), among\nAstoria, SCPPA, Power and Water Resources Pooling Authority, City of Lodi, City of Corona,\nCity of Moreno Valley and City of Rancho Cucamonga, which rights and obligations relate to\nthe Power Sales Agreement, dated as of July 23, 2014, between SCPPA and the City;\n3. A Limited Assignment Agreement (Daggett—Vernon) (the Daggett Solar LAA) among\nDaggett Solar Power 2 LLC (Daggett Solar), SCPPA and J. Aron, providing for SCPPA to\nassign certain of its rights and obligations to receive and pay for renewable energy and\nassociated resources under the Power Purchase Agreement, dated as of June 24, 2022 (the\nDaggett Solar PPA), between Daggett Solar and SCPPA, which rights and obligations relate\nto the Power Sales Agreement, dated as of June 24, 2022, between SCPPA and the City;\n4. A Limited Assignment Agreement (Desert Harvest—Vernon) (the Desert Harvest LAA)\namong Desert Harvest II LLC (Desert Harvest), SCPPA and J. Aron, providing for SCPPA to\nassign certain of its rights and obligations to receive and pay for renewable energy and\nassociated resources under the Power Purchase Agreement, dated as of December 21,\n2017 (Desert Harvest PPA), between Desert Harvest and SCPPA, which rights and\nobligations relate to the Power Sales Agreement, dated as of December 21, 2017, between\nSCPPA and the City;\n5. A Limited Assignment Agreement (BP Energy—Vernon/SCPPA) (the BP Energy—\nVernon/SCPPA LAA) between the City and SCPPA, assigning to SCPPA certain of the City’s\nrights and obligations to receive and pay for renewable energy credits under the City’s\nConfirmation Letter outlining the general terms and conditions of the agreement between the\nCity and BP Energy Company (BP Energy), whose terms are subject to the WSPP\nAgreement dated October 21, 2024, as amended from time to time (collectively, the BP\nEnergy PPA);\n6. A Limited Assignment Agreement (BP Energy—SCPPA/J. Aron) (the BP Energy—\nSCPPA/J. Aron LAA) and together with the BP Energy—Vernon/SCPPA LAA, the BP Energy\nLAA), among SCPPA, J. Aron, and the City, assigning to J. Aron certain of SCPPA’s rights\nand obligations to receive and pay for renewable energy credits under the BP Energy PPA;\n7. A Clean Energy Purchase Contract (CEPC) with SCPPA by which SCPPA will sell to VPU\nat discounted prices the prepaid renewable energy and associated resources generated by\nthe assigned Antelope DSR PPA, Astoria PPA, Daggett Solar PPA, Desert Harvest PPA, BP\nEnergy PPA (together, the PPAs) for a term of up to 30 years;\n8. A Custodial Agreement with J. Aron and U.S. Bank Trust Company, National Association,\nor selected financial institution as selected by J. Aron, as custodian, for a term equal to the\nCEPC’s term, to establish bank accounts for and administer payments to Antelope DSR,\nAstoria, Daggett Solar, Desert Harvest and BP Energy in satisfaction of performance under\ntheir respective PPAs;\n9. A Project Coordination and Governance Agreement with SCPPA and the three other\nparticipating SCPPA members (Burbank, Colton, and Pasadena) by which SCPPA will\nadminister this project and allocate administrative direct costs associated with the transaction\nto all SCPPA project participants, including Vernon Public Utilities;\n10. A Letter Agreement with SCPPA for a term equal to the terms of the Antelope DSR LAA,\nthe Astoria LAA, the Daggett Solar LAA, the Desert Harvest LAA, and the BP Energy LAA\n(together, the “LAAs”), providing that the parties may terminate the LAAs only upon certain\nspecified events, such as termination or suspension of performance under the assigned\nPPAs or suspension or termination of performance under the Clean Energy Purchase\nContract; and\nC. Approve and authorize the City Administrator to (a) execute and deliver the Prepay\nAgreements in substantially the forms presented to City Council, with such changes as the\nCity Administrator deems necessary or advisable in furtherance of the purposes of this\nresolution; (b) execute and deliver any related documents, such as amendments of any of\nthe Prepay Agreements or any agreements necessary to carry out the transactions\ncontemplated by the Prepay Agreements; and (c) take such actions as are necessary or\nadvisable to implement and administer the Prepay Agreements.

12.\nUpdate on Los Angeles County Proposed 1/2 Cent Sales Tax Measure\nRecommendation:\nA. Receive an oral report from staff on the Los Angeles County proposed 1/2 cent sales tax\nmeasure to be placed on the June 2, 2026 Statewide Direct Primary Election ballot; and\nB. Provide direction on potential consideration of a 1/4 cent local sales tax measure.\nORAL REPORTS

13.\nCity Administrator Reports on Activities and Other Announcements

14.\nCouncil Reports on Activities (including AB 1234), Announcements, or Directives to\nStaff\nCLOSED SESSION

15.\nPublic Employee Annual Performance Evaluation\nGovernment Code Section 54957(b)(1)\nTitle: City Administrator\nCLOSED SESSION REPORT

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3.\nClaims Against the City\nRecommendation:\nReceive and file the claim submitted by Olivia Esparza for Jacob Cortez.

4.\nOperating Account Warrant Register\nRecommendation:\nApprove Operating Account Warrant Register No. 167, for the period of January 4, 2026\nthrough January 17, 2026, totaling $10,335,348.37 and consisting of ratification of electronic\npayments totaling $9,960,867.73 and ratification of the issuance of early checks totaling\n$374,480.64.

5.\nFire Department Activity Report\nRecommendation:\nReceive and file the December 2025 Fire Department Activity Report.

6.\nPolice Department Activity Report\nRecommendation:\nReceive and file the December 2025 Police Department Activity Report.

7.\nService Agreement with Sespe Consulting Inc., a Trinity Consultants Company\n(Sespe), for Environmental Compliance and Remediation Technical Consulting\nServices\nRecommendation:\nApprove and authorize the City Administrator to execute a Professional Services Agreement\nwith Sespe, in substantially the same form as submitted, for Environmental Compliance\nand Remediation Technical Consulting Services for an amount not-to-exceed $500,000 for a\nthree (3) year term.

8.\nClassification and Compensation Plan\nRecommendation:\nA. Approve a new job description; and\nB. Adopt Resolution No. 2026-004 adopting the Classification and Compensation Plan in\naccordance with Government Code Section 20636(b)(1) and repealing Resolution No. 2026-\n003.

9.\nCitywide Fringe Benefits Policy\nRecommendation:\nAdopt Resolution No. 2026-005 adopting the Citywide Fringe Benefits Policy and repealing\nResolution No. 2025-036.