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