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HomeMy WebLinkAboutMinutes - September 22, 2014 - CCAZLISA I IGHT R A'AIIR CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, SEPTEMBER, 22 2014 — 6:30 P.M. The Utility Board/City Council of the City of Azusa met in regular session, at the above date and time, in the Azusa Light and Water (AL&W) Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairman Gonzales called the meeting to order. Call to Order Pledge to the flag was led by Boardmember Angel Carrillo. Flag Salute ROLL CALL: Roll call was taken by Secretary Cornejo. Roll Call PRESENT: BOARDMEMBERS: CARRILLO, MACIAS, ALVAREZ, ROCHA, GONZALES ABSENT: BOARDMEMBERS: NONE ' ALSO PRESENT Also Present Elected Officials: Secretary Cornejo. Staff Members: Assistant City Manager Haes, City Attorney Ferre, Utilities Director Morrow, Police Captain Chavez, Assistant Director of Resource Management Lehr, Assistant Director Customer Care Solutions Kalscheuer, Assistant Director of Water Operations Anderson, Administration and Financial Services Manager Johnson, Utility Program Specialist Reid, Assistant Director Electric Operations Langit, Senior Administrative Technician Cawte, Assistant/Deputy City Clerk Hernandez. PUBLIC PARTICIPATION Public Part None given. UTILITIES DIRECTOR COMMENTS Util Dir Comments Utilities Director Morrow gave an update on the AL&W drought enforcement statistics as of September 18, 2014: 1,893 warnings and 149 citations had been issued, residential citations were $50.00 for first offense and $100.00 for second offense, some water patrols were conducted during late evening and early morning shifts at different days of the week, some residents expressed support, and some opposition, to strict enforcement, several utilities in Southern California have not adopted restrictions; he further stated that the AL&W is aware of the seriousness of the drought problem and operates with that understanding. ' UTILITIES BOARD MEMBERS COMMENTS Util Brd None given Comments CONSENT CALENDAR: Moved by Boardmember Rocha, seconded by Boardmember Alvarez, to J approve Consent Calendar Items D -Ito D-8, with the exception of Item D-4, which was handled under the Consent Cal Special Call portion of the agenda, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, MACIAS, ALVAREZ, ROCHA, GONZALES ABSENT: BOARDMEMBERS:NONE 1. The minutes of the special meetings of July 28, 2014, were approved as written. Minutes 2. The submittal of a membership application to join the Association of California Water Agencies (ACWA) for membership beginning in 2015, was approved. Membership App-ACWA 3. The Scope of Work for preparation of Azusa Light & Water's Ten Year Electric Distribution System Master Plan was approved, and staff was authorized to issue a Request for Proposals (RFP). RFP 10 Year Elect Dist Sys 4. SPECIAL CALL ITEM Spec Call 5. The purchase of a high voltage cable reel trailer in the amount not -to -exceed $18,208.67, inclusive of applicable sales taxes and delivery charges was approved, and the issuance of a Purchase Order to the Purchase High dealer, Vermeer ofthe Pacific Company, located in Fontana, California, pursuant to Azusa Municipal Voltage Cable Code Section 2-523(e), Article VII Chapter 2, was authorized. 6. A one-year contract extension of the Professional Services Agreement with SA Associates for Rosedale Inspections was approved, and an amendment to add $10,000 to the existing Purchase Order, with no Agmnt Extend change in rates, was authorized. SA Assoc 7. Resolution No. UB -9-14 was adopted and entitled: Reso UB -9-14 A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Easement ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE Northrop RECORDING THEREOF. And the City Clerk was authorized to file said Grant of Easement, for Water Utility purposes located on Northrop Grumman's property at 301 Aerojet Avenue in the City of Azusa, with the Office of the Los Angeles County Recorder. 8. Resolution No. UB -10-14 was adopted and entitled: A RESOLUTION OF THE UTILITY BOARD OF THE CITY OF AZUSA, APPROVING AN AGREEMENT WITH THE STATE OF CALIFORNIA, DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT, FOR LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) FOR AZUSA RESIDENTS, SPECIAL CALL ITEMS Grumman Reso UB -10-14 LIHEAP Spec Call Assignment & Assumption of DCFC License Agreement with Blink NA LLC and Authorize Signature by the Director of Utilities. License Agreement Utilities Director Morrow and City Attorney Ferre responded to questions posed by Boardmember Rocha, Blink NA stating that the previous contractor, ECOtality of North America, filed for bankruptcy under Chapter 11; in ' . accordance with the bankruptcy assignment, the filer does not try to liquidate assets, but finds someone to whom the assets can be assigned; the License Agreement was assigned to Blink NA LLC; however, per the agreement, the AL&W Boardmembers have the right to accept or reject the assignments; there would be no 09/22/2014 PAGE TWO cost to the City with the change; per the agreement, they pay for the electricity that AL&W provides to them, and they are responsible for maintaining and servicing the equipment; it would be to the City's benefit to continue with the agreement, as there are residents that use the service; there would be no guarantee that Blink NA will not go into Bankruptcy, or try and find some buyer for those assets, but if .either was to happen, AL&W would have to be notified; the bankruptcy reviewers did not see anything out of the ordinary with the new company. Utilities Director Morrow and Assistant Director Electric Operations Langit, responded to additional questions posed by Boardmember Gonzales stating that in accordance with the agreement, the company is responsible for the maintenance of the equipment, including graffiti removal, if the graffiti is not removed per the City's ordinance that requires private property owners to remove graffiti with notice, the City can remove it and charge for cleaning expenses. Moved by Boardmember Rocha, second by Boardmember Carrillo to approve an Assignment & Assumption of DCFC License Agreement with Blink NA LLC, and to authorize the Director of Utilities to sign the agreement, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, MACIAS, ALVAREZ, ROCHA, GONZALES ABSENT: BOARDMEMBERS: NONE SCHEDULEDITEMS Sched Items Public Hearing to Adopt Resolution UB -11-14 Amending The Fiscal Year 2014/15 Water Fund Expense Budget by $2,019,000 to Pay for Supplemental/ Emergency Water Purchase and the Water Fund Revenue Public Hearing Budget by $1,817,000 for the Lease of Related Water Rights. FY 2014/15 Budget 'Utilities Director Morrow presented the item stating that at the last Utility Board Meeting, the purchase of Amendment 3000 AF of supplemental/emergency water for the Upper Canyon Basin was approved, and that purchase would make available some Main Basin water rights to be leased to third parties; the cost predicted for Fiscal Year 2014/15 would be approximately $2,019,000 for purchase, and a potential revenue of $1,817,000; the Azusa Municipal Code requires a Public Hearing when making amendments over $1 million. Chairman Gonzales declared the Public Hearing open; Secretary Comejo read the affidavit of proof of publication published in the San Gabriel Valley Tribune, on September 12, 2014, and declared that no Hearing Open written correspondence or oral communications were received regarding the Public Hearing, Chairman Gonzales sought public comment, but none was given. Moved by Boardmember Carrillo, seconded by Boardmember Macias, to close the Public Hearing, by the following vote of the Board: Hearing Closed YES: BOARDMEMBERS: CARRILLO, MACIAS, ALVAREZ, ROCHA, GONZALES ABSENT: BOARDMEMBERS: NONE Boardmember Carrillo offered a Resolution entitled: Reso UB -11-14 A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Approving CALIFORNIA, AMENDING THE FISCAL YEAR 2014-2015 WATER UTILITY OPERATING Budget BUDGET FOR THE PURHCASE OF EMERGENCY/SUPPLEMENTAL WATER AND LEASE OF Amendments RELATED WATER RIGHTS. 09/22/2014 PAGE THREE Moved by Boardmember Carrillo, seconded by Boardmember Rocha, to waive further reading and adopt Resolution No. UB -11-14, to amend the Water Fund Expense Budget for Fiscal Year 2014/15 in the amount of $2,019,000 for the purchase of up to 3000 Acre -Feet of supplemental water from the Upper San Gabriel Municipal Water District through the Main San Gabriel Basin Watermaster, and to amend the 'Water Fund Revenue Budget for FY 14/15 in the amount of $1,817,000 to reflect the revenue projected for the lease of associated water rights, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, MACIAS, ALVAREZ, ROCHA, GONZALES ABSENT: BOARDMEMBERS: NONE Report Pursuant to California Assembly Bill 2514 (AB 2514) on Establishing EnergySge Targets. Utilities Director Morrow presented the item stating that AB 2514, which was signed into law in 2010, requires that all California Utilities study applicability of energy storage and, if cost effective, set procurement goals; Public Owned Utilities (POU) are required to set procurement goals by 10/1/14 for 12/3 1 /2016 and 12/31/2021, and to update that study every3 years; the energy storage is nota new concept, and AL&W has implemented thermal storage; there has been progress on the commercialization of different types of batteries being used for energy storage; storing electricity has become more economic, some of the benefits include demand shifting, peak shaving and frequency regulation; all utilities are searching on how to cope with variability to store solar and wind energy, as there is change in the power supply on the system due to wind changes; staff conducted a study to try and find the most cost effective application for the Kirkwall station to help mitigate the demands; he further responded to a question posed by Boardmember Alvarez stating that the reason for not using the battery storing system, is due to it not being economic. Boardmember Carrillo offered a Resolution entitled: Establish Energy Storage Targets A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Reso UB -12-14 'CALIFORNIA, ADOPTING FINDINGS AND RECOMMENDATIONS REGARDINGFEASIBILITY Accept Energy AND COST EFFECTIVENESS OF IMPLEMENTING ENERGY STORAGE ON AZUSA OWNED, Storage Report OPERATED OR CONTROLLED POWER SYSTEM PURSUANT TO REQUIREMENTS OF THE CALIFORNIA ASSEMBLY BILL (AB) 2514. Moved by Boardmember Carrillo, seconded by Boardmember Macias, to waive further reading and adopt Resolution No. UB -12-14, providing that the energy storage targets for Azusa Light & Water for December 31, 2016 and December 31, 2021 are set at zero, and to accept the Energy Storage Report, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, MACIAS, ALVAREZ, ROCHA, GONZALES ABSENT: BOARDMEMBERS: NONE California Proposition 1 —2014 Water Bond. Utilities Director Morrow presented the item stating that the approved AB 1471 water bond, was placed on Proposition 1 - the November 2014 Ballot as Proposition 1; the bond would implement the Water Quality Supply and 2014 Water Infrastructure Improvements Act of 2014, it would make available $7.12 million in General Obligation Bond Bonds, and repurposes $425 million from prior bonds to convert into the water business; the distribution of the bond funds would be $520 million to improve water quality, $1.495 billion for environmental and ecosystem projects, $810 million for regional water management projects, $2.7 billion for water storage, $725 million for water recycling, $900 million for ground drinking water and $395 million for statewide flood management projects and activities; some water agencies support the bond and some oppose it; the public supports the bond, as it is believed that it will alleviate the current drought; City Attorney Ferre ' stated that if the Council chose to take a position to support the bond, they were restricted from using the city resources to promote it, and only educational communications could be made. 09/22/2014 PAGE FOUR Discussion was held regarding the bond requiring certain projects to provide matching funds from non -state sources, and the Water Commission charged with making some decisions if the projects qualify under the matching funds. The Board took a unanimous decision to remain impartial at this time regarding the proposed Water Bond. Public Power Week — October 5-11, 2014. Moved by Boardmember Carrillo, seconded by Boardmember Rocha, to approve the Issuance of a Public Power proclamation recognizing October 5-11, 2014, as Public Power Week, by the following vote of the Board: Week Proclo YES: BOARDMEMBERS: CARRILLO, MACIAS, ALVAREZ, ROCHA; GONZALES ABSENT: BOARDMEMBERS:NONE STAFF REPORTS/COMMUNICATIONS AB 939 2013 Annual Report. Staff Rprts/ Communic Utilities Director Morrow informed the Board that, in compliance with AB 939 State's recycling mandate, staff submitted the required annual report; the City's limit for disposing to the landfill is 6.3 pounds per person, and the actual for 2013 was 4.2 pounds per person; CalRecycle will visit AL&W in October 2014, AB 939 2013 for a meeting, and the topic of discussion is not yet know. Annual Report 2013 Annual Summary Inspection Reports (GO 165 and 174). Utilities Director Morrow informed the Board that staff conducts annual inspections of the electric Annual Summit facilities; the inspections are conducted in accordance with the California Public Utilities Commission Insp Rprts (CPUC) Rules; he presented the report to the Board for their information, stating that it would also be submitted to the CPUC. 2013 Electric Reliability Index Report. Utilities Director Morrow presented the reliability report prepared by an outside company, and gave a Electric detailed explanation to the Board regarding the results of the report. Reliability Index Rprt Fiscal Year 2013-2014 Fourth Quarter Budget Reports for Water and Electric Funds. Utilities Director Morrow presented the Fourth Quarter Budget Report for the year end 2014: Water FY 2013-14 reflected a positive cash flow of +$3.2M, revenues were 10% over budget due mostly to water leases that Quarter Report were made, expenses were 89% of budget, sales were down, and revenue continues to stay the same, debt coverage ratio continues to improve; Electric: slightly negative cash flow -$621 K, better than budgeted, in 2009 there was a rate increase that helped even the budget, a small rate increase may be needed to be consider within the next year or so, debt service coverage is 6.13, and sales up slightly by 1.0% 2014 California Legislative Session -- Key Utility Bills. Utilities Director Morrow presented key Legislative Bills, he emphasized on the Groundwater Management, California signed by the Governor, which are 3 different bills that require groundwater basins to be managed for Legislative sustainability; AB 2218 requires POU to adopt electric discounts to food banks; AB 2188 requires cities to Session adopt an ordinance to streamline solar permits; AB 2565 requires property lessors to install EV chargers upon request; AB 2414 provides free EV charging to government employees and is not gift of public funds. 09/22/2014 PAGE FIVE Proposed San Gabriel Mountains National Monument Designation. Utilities Director Morrow informed the Board that Congresswomen Chu, Napolitano, and other U. S.. SGV Representatives, submitted a letter to the President asking that the San Gabriel Mountains be designated as Mountains a National Monument; this request was due to the previously proposed National Recreational Area (NRA) National rejected by the House of Representatives, as there are no funds available for such project; due to Monument 'being concerns of potential approval by the President on the request, the water industry are asking for the same protective language as they did with the NRA. Drought Communications, Drought Utilities Director Morrow gave information to the board on the different ways that they are communicating Communica- to the public about the water drought, which included bill inserts, handouts, median signs, and social media. tions It was consensus of the Board to adjourn the meeting. Adjourn TIME OF ADJOURNMENT: 7:35 P.M. NEXT RESOLUTION NO. UB -13-14. ' Next Meeting: October 27, 2014, 6:30 P.M. 1 09/22/2014 PAGE SIX