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HomeMy WebLinkAboutMinutes - April 27, 2015 - UBCITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, APRIL 27 2015 — 6:30 P.M. Chairman: Edward J. Alvarez Vice -Chairman: Angel A. Carrillo Boardmember: Joseph Romero Rocha Boardmerriber: Uriel Edward Macias Boardmember. Robert Gonzales Secretary: Jeffrey Lawrence Cornejo, Jr. I 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. i Chairman Alvarez called the meeting to order at 6:30 P.M. Call to Order 'Pledge to the flag was led by Mr. Charles Alvarez. Flag Salute ROLL CALL: Roll call was taken by Secretary Comejo; Vice -Chairman Carrillo joined the meeting at Roll Call 6:35 P.M., and Boar'dmember Macias at 6:39 P.M., after roll call. I PRESENT: BOARDMEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ ABSENT: BOARDMEMBERS: NONE ALSO PRESENT Also Present I Elected Officials: City Treasurer Vasquez, Secretary Comejo. Staff Members: City Manager Butzlaff, City Attorney Ferre, Utilities Director Morrow, Police Chief Gonzalez, Interim Public Works Director/City Engineer Bobadilla, Assistant Director of Resource Management Lehr, Assistant Director of Electric Operations Langit, Administration and Financial Services Manager Johnson, Utility Program Specialist Reid, Senior Management Analyst Yang, Water Engineer Barbosa, Public Information Officer Quiroz, Assistant/Deputy City Clerk Hernandez. PUBLIC PARTICIPATION Public Part I None given. ' UTILITIES DIRECTOR COMMENTS Util Director Comments Utilities Director Morrow stated that 13,200 lbs. of paper were collected and shredded at the recent Shred- a-Thon and City Employees File Clean Up Day events. UTILITIES BOARD MEMBERS COMMENTS Mayor Rocha thanked Utilities Director Morrow for the supply kits that AL&W donated to assist him in Boardmembers Comments 'providing water conservation information to local schools; light discussion was held regarding installation of non -flushing water urinals at public facilities in order to conserve water. CONSENT CALENDAR: Moved by Boardmember Rocha, seconded by Boardmember Gonzales, to Consent approve Consent Calendar Items D-1 through D-8, by the following vote of the Board: Calendar YES: BOARDMEMBERS: ROCHA, GONZALES, CARRILLO, ALVAREZ NO: BOARDMEMBERS: NONE ABSENT: BOARDMEMBERS: MACIAS 1. The minutes of the regular meetings of February 23 and March 23, 2015, and the special meeting Minutes of April 6, 20i 15, were approved as written. 2. The purchase of a Terex PT70 Compact Track Loader from RGW Equipment for the Sludge Purchase RGW Dewatering Retrofit Project W-281 at the Hsu -Canyon Water Treatment Plant in an amount of Equipment $79,480.85 was approved, and the issuance of the purchase order was authorized. 3. The advertisement and solicitation of bids for Project W-289, Water Main Replacement at a Bids Water portion of First Street and Azusa Avenue in the City of Azusa, were approved. Main Replace 4. The specifications for project LD2015-1 to procure pre -assembled 12 KV Pole Mount Type Bids Pole Capacitor Banks were approved, and the City Clerk's Office was authorized to advertise and solicit Mount Type ' for bids. Capacitor 5. The following Resolution No. UB -6-2015 was adopted and entitled: Reso UB -6- 2015, LACEP A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, STATE OF CALIFORNIA, CONSENTING TO INCLUSION OF PROPERTIES WITHIN THE INCORPORATED AREA OF THE CITY IN THE LOS ANGELES COUNTY ENERGY PROGRAM TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY AND WATER EFFICIENCY IMPROVEMENTS, APPROVING THE REPORT SETTING FORTH THE PARAMETERS OF THE REFERENCED PROGRAM AND CERTAIN MATTERS IN CONNECTION THEREWITH. 6. The Utilities Director was authorized to sign a Joint Audit Agreement with the Southern California SCPPA Public Power Authority (SCPPA) for the Boulder Canyon Project (Hoover.) Agreement 7. The Utilities Director was authorized to execute the termination agreement with Portland General Termination Electric Company (PGE), for the contractual vehicle for bilateral trades of energy, capacity and other Agreement power products. PGE 8. The amended and restated Black & Veatch (B&V) Professional Services Agreement to extend the Extension term to August 31, 2015, for the support of the Azusa development of the Integrated Resource Plan B&V (IRP), was approved. 'SCHEDULED ITEMS Sched Items Schedule and Notification to the public of a Public Hearing for Refuse Rate Adjustment on June 15, 2015. Set Up Public Hearing Refuse Rate 04/27/2015 PAGE,TWO Adjustment Utilities Director Morrow presented the item stating the City has an agreement with Athens Services for G. Morrow refuse collection and recycling services, which allows for rate adjustments effective every July 1, 2015. Presents Item Proposition 218 requires that the rate adjustments be approved at a Public Hearing, and that the public be given a 45 -day advanced notice of the Hearing. The rate adjustments are based on the Consumer Price Index (CPI), waste/landfill disposal rates, the amount of waste collected and transportation cost; special credits/charges are also factored into the adjustments. Last year the CPI decreased slightly, and the landfill, Recycle Wood Products and transportation fees increased. The proposed rate increase for residential and multi -family is 6.57% or $1.46, and 13.92% or $2.59 per month respectively, and the commercial increase is based on the number of pickup days and the size in cubic yards of the bins. Moved by Vice -Chairman Carrillo, seconded by Boardmember Gonzales, to authorize staff to print and Approve Item mail to all customers, a 45 -day advanced notice of a Public Hearing to be held on June 15, 2015, in order to present and consider the proposed refuse rate adjustments, by the following vote of the Board: YES: BOARDMEMBERS:ROCHA,GONZALES,CARRILLO,ALVAREZ NO: BOARDMEMBERS:NONE ABSTAINED: BOARDMEMBERS: MACIAS Phase III Water Shortage Plan Continuation and Proposed Revisions to Water Rule 21 "Water Revisions to Conservation." Water Rule 21 Utilities Director Morrow presented the item stating that Water Rule 21 is the City's water conservation ordinance, which provides different plans in order to deal with water shortage conditions. As a result of the water supply conditions in California, on April 1, 2015, the Governor issued an Executive Order, mandating 25% state-wide reduction of urban water usage based on 2013 consumption. The State Water Board was directed to implement the mandate, they have issued regulations by using a tier system to establish the percentage of water use reduction based on actual gallons used per capita per day, from July 2013 to September 2014; Azusa is set at the 20% conservation requirement from 2103 under the State Mandate. New regulations, that have not yet been approved, prohibit use of potable water to irrigate ornamental turf in medians and newly constructed homes and buildings, unless property owners use the drip or microspray systems. The new reporting requirements will include the use of water by commercial, industrial and institutional sectors; the State Water Board will conduct monthly and cumulative consumption comparisons beginning June 1, 2015. The amendment to Water Rule 21 proposes a variety of changes that will allow AL&W to meet the new State rules, allow modifications to Phase III implementation and;may help with a Drought Charge Regulation should one be considered. The proposed changes were as follows: • Water only on designated days but not between 9:00 A.M. and 6:00 P.M. • Limit watering to 30 minutes or less on designated day per watering location. • No watering during rain events or within 48 hours after. • Allow watering with a bucket/can drip system, or recycled/gray water, anytime on designated day. • Require hotels/motels to provide guests with an option of not having towels and linen laundered daily. • Modify Phase III to limit watering to only 1 day per week during cooler season (November through March). Since 2005, AL&W customers have been able to conserve 25% to 30% of water usage; with the recent restrictions, new conservation programs have been implemented and enforced, an additional conservation of 20% to meet the State mandate may be challenging, and change in rates may need to be implemented; staff is working on a Drought Charge Regulation program and other techniques that may be implemented, such as a tier system which allows a more enhanced price to higher water users. 04/27/2015 PAGE (THREE G. Morrow Presents Item Proposed changesto Water Rule 21 Discussion was held regarding the schools also having to adhere to the mandate, the State to closely Discussion monitor the larger turf water users, education and public outreach being the main components to assist customers on how to conserve water, and how other Cities address consumption by swimming pools. 'Moved by Boardmeinber Rocha, seconded by Boardmember Gonzales, to ratify the City Manager and Approve Item Utility Director recommendation to continue Phase III Water Shortage declaration and to amend Water Rule 21 to promote increased reductions in consumer and business water usage, by the following vote of the Board: 7 YES: BOARDMEMBERS: ROCHA, GONZALES, CARRILLO, MACIAS, ALVAREZ NO: BOARDMEN)BERS: NONE STAFF REPORTS/COMMUNICATIONS Financial Impact of 20% State Mandate Water Use Reduction. Utilities Director Morrow presented the item stating that a 20% State Mandate reduction, from 2013 water consumption, would cause a $2.2 million reduction in sales, and the loss of revenue would reduce the AL&W's Debt Coverage below minimum level; efforts are being made to try and find alternatives on how the projected shortfall can be addressed. Discussion was held regarding additional education methods on how to reduce consumption of water in certain activities that require large amounts of water consumption, and the amount of water that is consumed at car washes, mining and commercial activities. ADJOURNMENT It was consensus of the Board to adjourn the meeting. TIME OF ADJOURNMENT: 7:11 P.M. GfTWYItPgVA2H �1 u •zir.; ECRETAR D / NEXT RESOLUTION NO. UB -6-2015. Next Regular Meeting: May 26, 2015, 6:30 P.M. 04/27/2015 PAGE FOUR Reports Comm Financial Impact on Mandatory Water Shortage Adjourn