HomeMy WebLinkAboutMinutes - March 24, 2014 - UBCITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY, MARCH 24, 2014 — 6:33 P.M.
The Utility Board/City Council of the City of Azusa met in regular session, at the Azusa Light and Water (AL&W)
Conference Room, located at 729 N. Azusa Avenue, Azusa, California.
Chairman Macias called the meeting to order. Call to Order
Pledge to the flag was led by Mr. Jorge V. Rosales. Flag Salute
ROLL CALL: Roll call was taken by Secretary/City Clerk Cornejo. Roll Call
PRESENT: BOARDMEMBERS/COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS,
'ALVAREZ,ROCHA
ABSENT: BOARDMEMBERS/COUNCILMEMBERS: NONE
ALSO PRESENT Also Present
Elected Officials: City Clerk/Secretary Cornejo.
Staff Members: City Manager Makshanoff, City Attorney Ferre, Director of Public Works/Assistant City
Manager Haes, Utilities Director Morrow, Assistant Director of Resource Management Lehr, Assistant
Director Customer Care Solutions Kalscheuer, Assistant Director Water Operations Anderson,
Administration and Finance Services Graham, Business Development/Public Business Coordinator Reid,
Senior Electric Engineer Vuong, Senior Administrative Technician Cawte, Assistant/Deputy City Clerk
Hernandez.
PUBLIC PARTICIPATION Public
Participation
Mr. Jorge V. Rosales addressed the meeting to thank staff for the additional information he received
regarding item D-3, the Underground Electric Substructures, and the detailed report regarding item E-1
Athens Rate Review.
UTILITIES DIRECTOR COMMENTS
City Manager Makshanoff addressed the meeting to inform the Board that earlier that day there was a bomb J. Makshanoff
scare at the Azusa Pacific University Science Building; the L.A. County Sheriffs bomb squad was called to Comments
'check a suspicious package, and found it to be of no concern.
UTILITIES BOARD MEMBERS COMMENTS
Election of Officers Chairperson Vice Chairperson and Secretary of the Utility Board for the period of Election of
March 2014 to March 2015. Officers
Chairman Macias addressed the meeting to thank everyone for the opportunity to serve as Chairman for the U. Macias
past year. Comments
'Boardmember Carrillo nominated Boardmember Gonzales for the Chairman position; no other
nominations were presented.
Moved by Boardmember Carrillo, seconded by Boardmember Alvarez, to elect Boardmember Gonzales to Chairman
the position of Chairman for the period of March 2014 to March 2015, by the following vote of the Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: BOARDMEMBERS: NONE
Boardmember Carrillo nominated Boardmember Alvarez for the Vice -Chairman position; no other Vice -Chairman
nominations were presented.
Moved by Boardmember Carrillo, seconded by Boardmember Rocha, to elect Boardmember Alvarez to the
position of Vice -Chairman for the period of March 2014 to March 2015, by the following vote of the
Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: BOARDMEMBERS: NONE
Moved by Boardmember Carrillo, seconded by Vice Chairman Alvarez, to continue with the past practice Secretary
that the City Clerk serve on the position of Secretary, by the following vote of the Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
'NOES: BOARDMEMBERS: NONE
CONSENT CALENDAR: It was moved by Boardmember Rocha, seconded by Boardmember Macias, to Consent Cal
approve Consent Calendar Items D-1 to D-4, by the following vote of the Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: BOARDMEMBERS: NONE
The minutes of the regular meeting of February 24, 2014, were approved as written; Boardmember Minutes
Rocha was absent at that meeting.
2.The following Resolution No. UB -1-14, was adopted and entitled: Reso UB -1-14
Accepting
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Easement
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF(for the property at 1501 West Gladstone Street - Material Recovery Facility.)
3. The Bid Contract to Furnish and Install Underground Electric Substructures along Foothill Boulevard Underground
and Dalton Avenue as per plan and specifications for Project # LD2013-10, was awarded to VCI Electric
Construction, Incorporated in the amount not -to -exceed $139,784.70. Substructures
4.The Local Resource Adequacy Capacity purchase of29 MW (Mega Watts) for calendar year 2015 from
Resource
NRG Energy was approved, and the Director of Utilities was authorized to execute the associated
Adequacy
Confirmation Agreement.
' SCHEDULED ITEMS
Capacity
Sched Items
Report on Cost Study of How Landfill Closure Affects Incremental Operating Costs of Athens Services Report on Cost
Study, Athens
03/24/2014 PAGE TWO Services
Assistant Director Customer Care Solutions Kalscheuer addressed the item stating that Athens collects all C. Kalscheuer
trash from Azusa, delivers it to a Materials Recovery Facility (MRF) in City of Industry, and the residue is Reports
then transported to a landfill designated by the city; after the closure of the La Puente Landfill in October
'2013, the City instructed Athens to haul the residue to Mid Valley Landfill in Rialto, and the recycled green
waste to Recycled Wood Products in Pomona; under the terms of the contract, Athens is entitled to
compensation for re -directing waste to another waste facility and presented a proposal of 10% rate increase,
and a 10 year contract; a consultant was hired to review Athens' proposal as well as a proposal submitted
by Waste Management; he gave a detailed explanation of the two proposals on distance, accessibility to the
facilities, and presented the consultant's study findings on cost, which reflects .20 cents less per ton to
deliver to EI Sobrante by Waste Management vs. Mid Valley by Athens; Athens agreed to reduce their
incremental transportation cost to match Waste Management, reflecting a savings of $294,000 per year or
$2.35 million in total during the 8 year contract.
Staff responded to questions posed by the Board, stating that fees are subject to change every three years Question
based on the market rate, they can increase, decrease or not change at all, as markets are competitive; in Answer
three years staff can look at the market rate and, depending on the findings Athens, can be directed to haul Session
to a different landfill; the difference in hauling waste to a more distant location, will be added to the rate
increase in July, 2014; every year there is a rate increase, and a public hearing is conducted on the proposed
increments.
Discussion was held regarding a last minute counter-offer submitted by Waste Management, which Discussion
reflected additional savings; staff indicated that the process to do the study was lengthy with ample time to
make changes; the last minute proposal was received after the agenda had been posted, and staff felt
comfortable with the recommendation posted on the agenda.
Moved by Boardmember Macias seconded by Boardmember Carrillo to:
'
I. Review and approve the consultant's findings with respect to Athens' increased costs to haul waste to
the Mid Valley Landfill, HI Sobrante Landfill, and Recycled Wood Products facility;
2. Continue to have Athens Services transfer Azusa's waste to Mid Valley in Rialto;
3.Direct staff to incorporate increased operating costs into the annual refuse rate adjustment based on the
incremental Transportation Cost Analysis Report by R3 Consulting, including the rate commitment by
Athens Services, and prepare a notice for public hearing in June, 2014 for approval of refuse rate
adjustment; and
4. Waive further reading and adopt Resolution No. UB -2-14 entitled: Reso No. UB -
2 -14
A RESOLUTION OF THE CITY COUNCIL/UTILITY BOARD OF THE CITY OF AZUSA,
CALIFORNIA, AMENDING THE FISCAL YEAR 2013-2014 OPERATING BUDGET FOR THE AB
939 FEE FUND TO PAY FOR ADDITIONAL WASTE PROCESSING AND TRANSFER COSTS.
By the following vote of the Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: BOARDMEMBERS: NONE
Amendments to the Power Sales Agreements ("PSA") with Southern California Public Power Authority Amend Power
("SCPPA") for Lone Term Purchase of Energy Capacity, and Environmental Attributes Sourced from Sales
' Solar Projects Developed by Silverado Power. Agreements
with SCPPA
Assistant Director of Resource Management Lehr addressed the item stating that Azusa is making progress
on the Renewable Portfolio Standard (RPS) as required by State Law; staff negotiated through SCPPA
03/24/2014 PAGE THREE
several renewable energy contracts; however, one of the contracts came back due to a reclassification of
certain facilities; SCAPPA requested that the PSA be changed and projects deferred; the contract was re-
negotiated successfully, reflecting gains of $5 million per project totaling $10 million.
'Moved by Boardmember Macias, seconded by Boardmember Carrillo to approve amendments to the
existing Power Sales Agreements with SCPPA for long term purchase of renewable energy and capacity,
and to authorize the Mayor to execute the same, by the following vote of the Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: BOARDMEMBERS: NONE
STAFF REPORTS/COMMUNICATIONS Rprts/Comm
Water Supply Update. Water Supply
Update
Utilities Director Morrow addressed the item stating that last month the Board approved Phase IIIof the
water conservation program; the situation has not changed and the recent rainfall was not enough to help
with the drought; a study was conducted to look at the City's basin for 2014, to determine how much water
can be pumped, as the water level is reaching the bottom; the three entities that pump from the basin are Cal
American, City of Glendora and City of Azusa; hopes are for more rain or to acquire water from the State
Project which is currently at 0% allocation; the situation is critical; a press release was sent out last week on
Phase III implementation, which will start May 1, 2014.
Water Conservation Programs Update. Water
Conservation
Utilities Director Morrow addressed the item explaining that depending on the water district that residents Update
'are located, they can take advantage of the different conservation programs that are offered by the three
water districts: the Upper District, the San Gabriel Valley Municipal Water District (SGVMWD) and the
Three Valleys District; Azusa purchases water from the entity that charges less for replenishing water; the
programs that are available are as follows:
Azusa Light & Water Programs that affect all customers, inside and outside the city:
1. 50% rebate for controlled irrigation systems, drought tolerant plants and artificial turf
2. Energy rebates for clothes washer and dishwashers
SGVMWD Programs:
1. Annual toilet exchange
2. Clothes washer rebate
MWD Programs
1. Clothes washer rebate
2. Toilets exchange
3. Outdoor rebates
4. Several commercial rebates
This information will be posted on the City's website as well as new programs; staff will continue to search
for additional rebates that can be offered to customers; the current budget for such programs is $100,000,
and staff may consider requesting an increase of $200,000.
Mayor Rocha requested that staff conduct additional workshops on the subject, at different public events as
well as at a City Council Meeting.
California Municipal Utilities Association (CMUA) Legislative Update. Calif Muni
Utilities Assoc
Utilities Director Morrow provided the Board with a list of Legislative Bills pointing out that there are Legislative
several water bond bills competing to pass the Legislation; one may be placed on the November, 2014 Update
ballot.
03/24/2014 PAGE FOUR
California Drought Facts. Calif Drought
Facts
Utilities Director Morrow provided the Board with a list of drought facts for their information.
I2014 American Public Power Association (APPA) Legislative Rally Briefing Packet. APPA
Legislative
Utilities Director Morrow presented the Board with a packet on the APPA Legislative Rally held in Packet
Washington D.C. in March 2014.
It was consensus of the City Council/Utility Board to adjourn the meetings. Adjourn
TIME OF ADJOURNMENT: 7:20 P.M.
NEXT RESOLUTION NO. UB -3-14.
03/24/2014 PAGE FIVE