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HomeMy WebLinkAboutMinutes - June 23, 2014 - UBCITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JUNE 23 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. Elected Officials: 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 Manager Graham, Business Development/Public Business Coordinator Reid, Assistant Director Electric Operations Langit. PUBLIC PARTICIPATION Public Part None given. UTILITIES DIRECTOR COMMENTS Director Morrow Utilities Director Morrow reminded everyone of the first drought forum on June 24, 2014, 6:45-7:45 P.M., Comments at the Azusa Senior Center, and demonstrated a rain barrel that will be displayed at the workshop; he gave information on the National Conference for the American Public Power Association (APPA) that he recently attended, where the key topics discussed were utility modernization, cyber and fiscal security, customers generating their own energy, and the Environmental Public Agency (EPA) Green House Gases; and stated that the key well in the Main Water Basin has reached an all-time low level. UTILITIES BOARD MEMBERS COMMENTS Board Boardmember Rocha gave information regarding an idea brought up at a previous community event, to use Comments the control boxes located at the traffic signals to promote community art and at the same time beautify the City. Chairman Gonzales called the meeting to order. Call to Order Pledge to the flag was led by Boardmember Uriel Macias. Flag Salute ROLL CALL: Roll call was taken by Secretary Cornejo. Rall Call PRESENT: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA ABSENT: BOARDMEMBERS: NONE ALSO PRESENT Also Present Elected Officials: 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 Manager Graham, Business Development/Public Business Coordinator Reid, Assistant Director Electric Operations Langit. PUBLIC PARTICIPATION Public Part None given. UTILITIES DIRECTOR COMMENTS Director Morrow Utilities Director Morrow reminded everyone of the first drought forum on June 24, 2014, 6:45-7:45 P.M., Comments at the Azusa Senior Center, and demonstrated a rain barrel that will be displayed at the workshop; he gave information on the National Conference for the American Public Power Association (APPA) that he recently attended, where the key topics discussed were utility modernization, cyber and fiscal security, customers generating their own energy, and the Environmental Public Agency (EPA) Green House Gases; and stated that the key well in the Main Water Basin has reached an all-time low level. UTILITIES BOARD MEMBERS COMMENTS Board Boardmember Rocha gave information regarding an idea brought up at a previous community event, to use Comments the control boxes located at the traffic signals to promote community art and at the same time beautify the City. Boardmember Macias requested that the sprinkler heads at Canyon Park, corner of Sierra Madre and San J. Rocha Gabriel, be checked as there are a few that appear to be broken. Comments ' Boardmember Carrillo thanked staff for the sample rain barrel that was presented, and inquired about the price and different types of barrels available on the market; he suggested placing drought signs that are not U. Macias alarming, but informative and a reminder to customers of what is required in order to conserve water; he Comments discussed with staff other cities not implementing restrictions as much as Azusa has, which has to do with the City's situation being different from other cities due to its location and not having a well in the Main A. Carrillo Basin; other cities are stocked by the Metropolitan Water District, Azusa opted out of the Water District Comments several years ago in order to save money, but that took away that one option. Boardmember Alvarez suggested that the watering at Memorial Park be done early in the morning or at night, instead of noon in order to conserve water; Utilities Director Morrow responded that some places have large spaces of green where there is not enough time to water during the suggested hours or days, the golf course being an example; there was a 20 day period after the implementation of the water drought, for places such as this, to file for an exemption on the mandated restriction, but those who apply for the E. Alvarez exemptions have to use water efficiency techniques, as a result the golf course has taken out green space Comments from use, so they no longer water those areas; City Manager Makshanoff added that Memorial Park noon watering may be due to the fertilizer that was recently put on, to avoid burning the grass. CONSENT CALENDAR: Moved by Boardmember Carrillo, seconded by Boardmember Alvarez, to Consent Cal approve Consent Calendar Items D-1 to D-7, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, ALVAREZ, ROCHA, MACIAS, GONZALES NOES: BOARDMEMBERS: NONE 1. The minutes of the regular meeting of May 27, 2014, were approved as written. Minutes 2. The plan and specifications for project LD2014-3 were approved, and staff was authorized to solicit Plans & Specs proposals for the furnishing and installing of underground electric substructures at 1 110 W. Foothill Underground Blvd., and 1067 W. Fifth Street, north and south of the Railroad Tracks, as depicted in drawing Electric ED2014-3. Substructures 3. The contract for the Sludge Dewatering Retrofit Project W-281 at the Hsu -Canyon Water Treatment Retrofit Proj Plant in amount of $306,515, was awarded to Los Angeles Engineering, Inc. of Covina 4. The following Resolution No. UB -6-14 was adopted and entitled: A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Reso UB -6-14 CALIFORNIA, TO AMEND WATER RULE NO. 21 SECTION D — REQUEST FOR RELIEF, Amend Water Rule No. 21 SECTION E — NOTICES, CITATIONS, PENALTIES, CHARGES, AND SERVICE TERMINATION AND SECTION F—HEARING REGARDING VIOLATIONS. 5. The Azusa Light & Water's proposed Rain Barrel Rebate Program, effective July 1, 2014, was Rain Barrel Program approved. 6. Approval was given to send a comment letter to Senator Jerry Hill, Chair of the Senate Environmental Letter of Opposition for Quality Committee, containing Azusa Light & Water's opposition to Assembly Bill 1826 (Amended AB 1826 April 22, 2014) Solid Waste/Organic Waste, and the Mayor was authorized to execute the same. 7. The Azusa Light & Water's 2013 Power Source Disclosure report and posting was approved. Power Source Disclosure 06/23/2014 PAGE TWO SCHEDULED ITEMS Sched Items Request for Proposals (RFP) for Advanced Meter Infrastructure (AMI). Meter Data Manaeement Svstem RFP Advanced ' (MDMS). and Outa eg Management System (OMS). Meter Infrastructure Utilities Director Morrow and Assistant Director Customer Care Solutions Kalscheuer presented the item stating that for the past few years staff has been studying modernization of the utilities system; AMI consists of installation of new electric and water meters capable of two way communication; the system is managed by automated computers; it has been implemented by many utilities and gas companies nationwide; the program was adopted as a section of the Independence and Security Act of 2007; the industry is moving from analog manual systems to digital real time information automated systems; the new systems will provide capability to operate more reliably and efficiently, and will increase the ability to monitor what is going on in real time; staff is looking for technology that is capable of doing remote meter reading, remote shut off and turn on; the system will be capable of detecting leaks in the system, currently there are substantial water leak problems which are very difficult to detect; it will enable the ability to assess if transformers are overloaded, detect power outages and how they occur, response to outages can be done quicker; there has been difficulty integrating solar installations within the current grid, they create technical issues on the network that cannot be monitored due to the lack of smart devices that can give real time information; this project is anticipated to yield multiple benefits for customers, such as the ability to get service right away, offer different payment options, increase reliability, monitor activity over the network, determine who has service and who doesn't, how to connect service, use of the time pricing to give customers a better pricing, and customers can use electricity wisely and reduce green house gases; the scope of work involves a three phase project: Phase 1 installation of AMI communication system, changing most of water and electric meters; Phase 11 integrate water meter data with AL&W system information; Phase III the Outage Management System for the electric division; Phase I would involve a pilot installation at Citrus Crossing Shopping Center and Azusa Pacific University housing, NW Corner of ' Alosta and Citrus, to ensure that the vendor can deliver what is expected; the RFP will show cost proposals and different systems, staff can choose one that will work for AL&W service territory. Discussion was held regarding the reading accuracy with the current system vs. the new system which has data management that has analytics to monitor accuracy, the proposals will include information about system management; a study that was conducted on production v. consumption, showed under billings approaching $1,000,000 loss in revenue as a result of meters or main lines leaking, just by replacing the meters alone will be of benefit; the replacement of all electric meters, except large TOU meters which will be retrofitted, if possible, otherwise they will be replaced; meter reader positions will be evaluated, some services outside Azusa will still require manual managing, for which employees will be needed, as well as advanced meter reader technicians to physically check the new meters if needed; the cost to customers will be calculated once the proposals have been received and evaluated. Moved by Boardmember Carrillo, seconded by Boardmember Macias, to approve the Request for Proposals (RFP) for Advanced Meter Infrastructure (AMI), Meter Data Management System (MDMS), and Outage Management System (OMS), and to authorize staff to solicit proposals, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, ALVAREZ, MACIAS, GONZALES NOES: BOARDMEMBERS:ROCHA Power Sales Aereement ("PSA") with Southern California Public Power Authority ("SCPPA") for Long Power Sales Term Purchase of Energy Capacity, and Environmental Attributes Sourced from Astoria 2 Solar Project Agreement ' Developed by Recurrent Energy. SCPPA Assistant Director of Resource Management Lehr presented the item stating that this agreement will be in effect until 2037; he gave details on the agreement, other entities who joined on the project, the key points 06/23/2014 PAGE THREE terms of the project, and calculations on what is needed in order to be in compliance with renewable energy as required by State law; staff will move forward to renewable resources, projects are to begin in 2017. Moved by Boardmember Carrillo, seconded by Boardmember Rocha to approve a Power Sales Agreement (PSA) with Southern California Public Power Authority (SCPPA) for a twenty-year term purchase of energy and environmental attributes from a photovoltaic project developed by Recurrent, authorize the Mayor to execute the agreement, and authorize the Director of Utilities or his designee to administer the PSA agreement and consummate/administer any other ancillary documents that may be necessary for project administration, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, ALVAREZ, ROCHA, MACIAS, GONZALES NOES: BOARDMEMBERS: NONE Power Sales Agreement ("PSA") with Southern California Public Power Authority ("SCPPA") for Lone Term Purchase of Energy Capacity, and Environmental Attributes Sourced from Puente Hills Landfill Gas -to -Energy Facility (Puente Hills). Assistant Director of Resource Management Lehr presented the item stating that AL&W needs to have a portion of its capacity in the Los Angeles Basin; through the SCPPA RFP process, the Puente Hills Landfill Biogas project was identified as the most attractive base -load renewable facility; it is owned and operated by L.A. County Sanitation District 92, and located near Whittier, CA, and currently operational under contract by Southern California Edison (SCE); he responded to a question posed by Boardmember Carrillo stating that this agreement complies with State laws and regulations. ' Moved by Boardmember Carrillo, seconded by Boardmember Alvarez, to approve a Power Sales Agreement (PSA) with Southern California Public Power Authority (SCPPA) for a fourteen -year term purchase of energy and environmental attributes from a landfill gas -to -energy project owned and operated by Los Angeles County Sanitation District #2 of Los Angeles County, authorize the Mayor to execute the agreement, and authorize the Director of Utilities or his designee to administer the PSA agreement and consummate/administer any other ancillary documents that may be necessary for project administration, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, ALVAREZ, ROCHA, MACIAS, GONZALES NOES: BOARDMEMBERS: NONE Co -Energy Metering Program as Provided by the California Public Utilities Code. Utilities Director Morrow presented the item stating that under State law AL&W is required to enter into Net Metering Agreements with customers who install certain generating technologies; under the Net Metering concept, customers can reduce their electricity consumption by rolling back the meter from generation of the solar project; customers get credit for what they would have actually spent if they had used the power; in order to promote solar insulation, the State realized that in addition to Net Metering, publicly -owned utilities can also adopt the Co -Energy Metering, which means that customers would receive credit for actual energy value provided to AL&W rather than full retail credit, this will reduce the fiscal impact of Net Metering. ' Boardmember Alvarez addressed questions regarding the average kilowatts of household usage, and the financial benefit to the City depending on customer usage. Boardmember Carrillo offered a resolution entitled: Power Sales Agreement, SCPPA Co -Energy Metering Program ResoUB-7-14 Co -Energy Metering 06/23/2014 PAGE FOUR A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF AZUSA, CALIFORNIA ADDING A NEW ELECTRIC RATE SCHEDULE CEM "CO -ENERGY METERING", 'AMENDING SCHEDULE TOU TO INCORPORATE A GENERATION COMPONENT, AND AMENDING SCHEDULE NGP TO EXCLUDE CEM ELIGIBLE CUSTOMERS. (a Co -Energy Metering program pursuant to Public Utilities Code (PUC) Section 2827.) Moved by Boardmember Carrillo, seconded by Boardmember Rocha, to waive further reading and adopt Resolution No. UB -7-14, by the following vote of the Board: YES: BOARDMEMBERS: CARRILLO, ROCHA, MACIAS, GONZALES NOES: BOARDMEMBERS:ALVAREZ Staff Rprts STAFF REPORTS/COMMUNICATIONS Renewable Azusa's Renewable Portfolio Standard Report for First Compliance Period (CY Portfolio 2011, 2012 & 2013) to be Submitted to the California Energv Commission. Standard Report Utilities Director Morrow presented the Board with a copy of the Compliance report to be submitted to the California Energy Commission. Moved by Boardmember Carrillo, seconded by Chairmen Gonzales, and unanimously carried to adjourn the meeting. ' TIME OF ADJOURNMENT: 7:54 P.M. g ;A rcc SECRETA JI NEXT RESOLUTION NO. UB -8-14. 06/23/2014 PAGE FIVE Adjourn