HomeMy WebLinkAboutMinutes - April 28, 2014 - UBCITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY, APRIL 28, 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 Gonzales called the meeting to order.
Pledge to the flag was led by Boardmember Edward J. Alvarez,
ROLL CALL: Roll call was taken by Secretary/City Clerk Cornejo.
PRESENT: BOARDMEMBERS/COUNCILMEMBERS: GONZALES, CARRILLO, ALVAREZ,
ROCHA
ABSENT: BOARDMEMBERS/COUNCILMEMBERS: MACIAS (Joined the meeting at 7:00 P.M.)
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, Police Lieutenant Hunt, 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, Assistant Director Electric Operations Langit, Senior Management Analyst
Yang, Senior Administrative Technician Cawte, Assistant/Deputy City Clerk Hernandez.
PUBLIC PARTICIPATION
Call to Order
Flag Salute
Roll Call
Also Present
Public Part
Mr. Jorge V. Rosales addressed the Board regarding Consent Item D-2, a feasibility Study to renovate an J. Rosales
existing City owned vacant building, to express his opposition to the project stating that this project is nota Comments
need but a want.
Mr. Dan Simpson addressed the Board regarding Scheduled Item E-1, a comment letter addressed to D. Simpson
Congresswoman Chu on the proposed National Recreation Area (NRA), to commend Utilities Director Comments
Morrow for addressing the issues of concern; he requested additional information about water rights being
protected under Legislation and how the Wilderness and the Wild Scenic would be approved.
Chairman Gonzales stated that the concerns addressed under public participation would be answered at the R. Gonzales
time those items are addressed on the agenda. Comments
UTILITIES DIRECTOR COMMENTS
None Given.
UTILITIES BOARD MEMBERS COMMENTS
Brd Comments
Boardmember Carrillo addressed the meeting thanking staff for the recent Shred-A-Thon Event stating that A. Carrillo
' it was a success that benefited many residents: Comments
Chairman Gonzales addressed the meeting stating that the residents' response to the Shred-A-Thon Event R. Gonzales
was positive; he requested that staff hold an additional event before the end of the year; Utilities Director Comments
Morrow responded that the cost to hold this event is minimal, and the City benefits by receiving credit for
the recycled paper; at this event over 11,000 lbs of paper were collected, filling up approximately 400
boxes, and about 100 cars lined up to participate.
CONSENT CALENDAR: It was moved by Boardmember Carrillo, seconded by Boardmember Rocha, to Consent Cal
approve Consent Calendar Items D-1 to D-8, with the exception of Item D-2, which was handled under the D-2 Spec Call
Special Call Portion of the agenda, by the following vote of the Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: MACIAS
1. The Minutes of the regular meeting of March 24, 2014, were approved as written. Minutes
2. SPECIAL CALL ITEM.
3. Plans and Specifications were approved, and staff was authorized to advertise and solicit bids for Bids Water
Project W-281, Installation of the Deskins Dewatering System at the Hsu Water Filtration Plant. Filtration Plant
' 4. Plans and Specifications were approved; staff was authorized to solicit for proposals for Project Plans & Specs
LD2014-1, furnishing and installing Underground Electric Substructures along Rockvale Avenue RFP
North of Foothill Boulevard, South of Railroad Track, as depicted in drawing ED2014-1.
5. Resolution No. UB -3-14 adopting an amendment to Water Rule No. 21 Section A -Definitions Reso amend
regarding the definition of "water users" was adopted and entitled: Water Rule 21
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA TO AMEND WATER RULE 21 SECTION A — DEFINITIONS.
6. Director of Utilities was authorized to sign a Letter of Participation with Southern California Public Letter of
Power Authority (SCPPA) to accept/implement Azusa's share of the electric vehicle grant which was Participation
recently awarded to SCPPA by the California Energy Commission. SCPPA
7. Staff s request for clarification of Subsection "D" in the Water Rate Schedule was supported. Water Rate
Sched
8. Azusa Light & Water participation in California Air Resources Board's auctions for the purpose of
selling and/or buying Greenhouse Gas (GHG) compliance instruments (Allowances or Offsets) was Participation in
approved; and the Director of Utilities was authorized to undertake all administrative tasks related to GHG
such auction participation including fulfilling auction registration and approving collateral posting
requirements in amounts not to exceed $750,000.
SPECIAL CALL ITEM Spec Call
' Selection of Martinez Architects. Inc for Performing a Feasibility of Renovating Existing City RFP Study on
Owned Vacant Building in Azusa. and Authorize City Manager to Sign the Professional Services Renovation of
Agreement. City Owned
Property, 600
04/28/2014 PAGE TWO Block, N. of
Utilities Director Morrow addressed the item stating that the AL&W owned vacant building located on the
600 Block North of San Gabriel Avenue, is in blighted condition and needs to be renovated; the Utility
Board authorized staff to search for ideas on how the facility can be used, and to focus on having
something of value for the residents; at the Request for Proposals (RFP), approved by the Board in
September, 2013, different ideas were presented: education to residents on water energy, how to reduce
utility bills, rebate programs, sign up for available low income programs, where the water and electricity
come from, a kiosk for bill payments, and a conference room for use of City meetings, local organizations
and residents who may be interested; there is no commitment to do any project at this time, the study
would assist with the ideas, and how to get the most value for the investment; the study would have
conceptual designs with specific suggestions.
Boardmembers Rocha and Alvarez expressed concerns regarding the project stating that the cost for
building may be elevated as there will be the need to build partitions, renovate the deteriorated restrooms
and any additional renovations needed, and additional staff would be needed to keep the building; an
option would be to demolish the building, sell it, or postpone the renovation until after the GoldLine is in
full operation, to see what businesses come to town and build accordingly; Boardmember Rocha expressed
that this project is a want and not a need.
Boardmember Macias entered the meeting at 7:00 P.M., and joined the discussion on the item.
Chairman Gonzales and Boardmembers Carrillo and Macias expressed support for the project stating that
the study can help make a permanent decision and not build something that would only be temporary; there
are needs and wants as previously stated, but that area is heavily tagged, the building is boarded, in
deplorable condition, and needs to be improved and occupied; the City no longer has the Redevelopment
Agency and it needs to set an example by investing on improving the City so that others may follow; it is a
relatively small investment for the study but it would be a good investment to improve the Downtown, in
addition to the improvement currently taking place; it can be transitioned into the main thorough fair and
main key area; multi -use is another possibility as long as it is properly managed.
San Gabriel
Ave.
E. Alvarez and
J. Rocha
Comment
R. Gonzales,
A. Carrillo and
U. Macias
Comment
Moved by Boardmember Macias, seconded by Chairman Gonzales, to: Approve the selection of Martinez Approve the
Architects Inc. for performing a feasibility study related to the future renovation and repurpose of an RFP
existing City owned building; and authorize the City Manager to sign the Professional Services Agreement
with Martinez Architects, Inc. in the amount not -to -exceed $29,900, by the following vote of the Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS
NOES: BOARDMEMBERS: ALVAREZ, ROCHA
SCHEDULEDITEMS
Comment Letter on Proposed San Gabriel National Recreation Area (NRA) Federal Legislation.
Utilities Director Morrow addressed the item stating that the NRA was proposed 10 years ago, and it has
been discussed at the Utility Board Meetings for over a year; he thanked everyone who submitted their
input and support during the review period, as the main concern was to protect Azusa's water rights; in
2011, the National Park Service completed a Special Resource Study and Environmental Assessment of
the San Gabriel Watershed and Mountains; the revised Legislation language is clear that the proposed
NRA will not impact the operations and management of the water resource facilities; the current comments
are for clarification of the language definition of what is being proposed, to ensure that the facilities will
continue to operate with minimal interference by the process of the NRA; the Legislation states that the
boundaries will be determined after it passes; this is a concern as there is no other utility that is more
impacted than Azusa; 80% of Azusa's water originates from the mountains and the river, and a filtration
plant, basins and wells are within the proposed NRA; Legislation is not clear on the area and the
maintenance of the water supply and water rights due to the boating, fishing and swimming areas that will
be added; there is a 30 day period to comment on the proposed Wilderness and Wild and Scenic River.
04/28/2014 PAGE THREE
Sched Items
Letter on the
NRA
Discussion was held regarding the SGVOG created Committee to represent the affected Cities, which is
made of 21 elected officials, the power they have to make decisions, and once the Committee ceases what
will happen with the water rights; Azusa staff does not have control on the decisions that the Committee
' makes, and is making its own comments to ensure that the language of the Legislation protects water
rights; the areas of concern are water storage facilities that are not intended for recreation purposes; Los
Angeles County can retain the right to use the areas that they own for recreation, such as it happened at Big
Bear and Lake Arrowhead recreation areas; those takes were originally meant for water use, flood control,
and water supply; other concerns are additional expenses for the use of the City's resources and
deterioration of the infrastructure; Congresswoman Napolitano is supportive of the City's position.
Moved by Boardmember Rocha, seconded by Boardmember Macias, to approve sending a comment letter
to U. S. Representative Judy Chu, due by April 30, 2014, containing Azusa Light & Water input on the
proposed draft Legislation prepared by her office for a San Gabriel National Recreation Area; the letter is
to bejointly signed by the Azusa Mayor and the Azusa Utility Board Chairman, by the following vote of
the Board:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
ABSENT: BOARDMEMBERS: NONE
FY 2014-2015 Refuse Rate Adiustment and Authorization to Schedule a Public Hearing on June 16 2014 Refuse Rate
for the Annual Refuse Rate Adjustment. Adjustment,
Item Pulled
Utilities Director Morrow addressed the item stating that annual rate adjustments with Athens per the
exclusive Franchise Agreement for waste provider, are updated July 1 st ofeveryyear; staffhas agreed with
most ofthe fees submitted by Athens with the exception ofthe actual landfill costs, which reflects a special
rate to which Azusa is entitled; he request that the item be pulled at this time to allow additional time to re-
calculate those fees; should the rates decrease, the annual public hearing will not be required.
Moved by Boardmember Carrillo, seconded by Boardmember Alvarez, to pull the item from the agenda
and to bring it back for a future meeting, to allow staff to re -calculate the adjustments and determine if a
Public Hearing needs to be conducted under Proposition 218, by the following vote of the Council:
YES: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
ABSENT: BOARDMEMBERS: NONE
STAFF REPORTS/COMMUNICATIONS
Staff Rprts
Comm
FY 2013-2014 Third Quarter Budget Reports
for Water and Electric Funds.
FY 13-14
Administration and Finance Services Graham presented the Quarter Budget Report, as of March 31, 2014:
Third Quarter
Report
Water:
Electric:
Positive on the Cash Flow $522,268
Positive Cash Flow of $166,604
Revenues were 71 %
Sales went down 1 %
Expenses were 65%
Revues were 75%
Retail Sales went down by I %
Expenses were 70%
Debt Coverage Ratio was 1.62
Debt Coverage Ratio was 7.21
Reserve Levels $21,921,794
Reserve Levels $19,440,571
Water SupplyUpdate. Update on
Water Supply
Utilities Director Morrow gave an update on the water supply stating that on April 25, 2014, the Governor
announced an executive order and declared a new Emergency Drought Proclamation calling on all
04/28/2014 PAGE FOUR
Californians for the following: no watering driveways, wash cars only with recycled water, two days
landscape watering, restaurants not to issue water unless it is requested; Phase III of Azusa Drought,
approved by the Board in February 2014, will be implemented on May 1, 2014, address the orders called
' by the Governor.
Utilities director Morrow responded to a question posed by Boardmember Rocha stating that staff is
currently working on setting up a rain barrel program that will include a rebate for those who purchase
them.
Community Water Supply (Droueht) Forums. Update on
Water Drought
Utilities Director Morrow addressed the board requesting their feedback on potential locations, that can be Forums
convenient for residents, to hold forums to address and give information on the recent drought, the current
water supplies, educate the residents on what Phase 111 Program entails, get feedback on tips and ideas on
how to save water, and how to assist them in the process; information on the forums will be distributed as
it becomes available.
Moved by Boardmember Carrillo, seconded by Boardmember Macias and unanimously carried to adjourn
the City Council/Utility Board Meeting.
TIME OF ADJOURNMENT: 7:37 P.M. Adjourn
I 9T �WSECRETAR
NEXT RESOLUTION NO. UB -4-14.
04/28/2014 PAGE FIVE