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Home My WebLink AboutMinutes - June 22, 2015 - UBCITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, NNE 22, 2015 — 6:30 P.M. Chairman: Edward J. Alvarez Vice -Chairman: Angel A. Carrillo Boardmember: Joseph Romero Rocha Boardmember: Uriel Edward Macias Boardmember: Robert Gonzales Secretary: Jeffrey Lawrence Cornejo, Jr. 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 North Azusa Avenue, Azusa, California. Chairman Alvarez called the meeting to order at 6:30 P.M. Pledge to the flag was led by Boardmember Robert Gonzales. ROLL CALL: Roll call was taken by Secretary Cornejo. Boardmember Macias joined the meeting at 6:33 P.M. after roll call. PRESENT: BOARDMEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ ABSENT: BOARDMEMBERS: NONE ALSO PRESENT Elected Officials: Secretary Cornejo. Staff Members: City Manager Butzlaff, City Attorney Martinez, Utilities Director Morrow, Finance Director Paragas, Community Development Director Christiansen, Police Captain Chavez, Assistant Director Customer Care and Solutions Kalscheuer, Assistant Director of Resource Management Lehr, Assistant Director of Electric Operations Langit, Administration and Financial Services Manager Johnson, Utility Program Specialist Reid, Assistant/Deputy City Clerk Hernandez. PUBLIC PARTICIPATION None given. 'UTILITIES DIRECTOR COMMENTS Utilities Director Morrow addressed the meeting stating that Azusa Light and Water was awarded the "2014 Public Communications Achievement Award." He requested that the meeting be adjourned in memory of Mr. Micah Moore, Line Mechanic for the City of Azusa Light and Water. Call to Order Flag Salute Roll Call Also Present Public Part Util Director Comments CONSENT CALENDAR: Moved by Vice -Chairman Carrillo, seconded by Boardmember Gonzales, to Consent approve Consent Calendar Items D-1 through D-5, with the exception of Item D-5, which was handled Calendar under the Special Call portion of the agenda, by the following vote of the Board: YES: BOARDMEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NO: BOARDMEMBERS: NONE 1. The minutes of the regular meeting of May 26, 2015, were approved as written. Minutes 2. The one-year contract extension of the Professional Services Agreement with SA Associates was SA Assoc approved, and staff was authorized to continue the Purchase Order through FY2015-16. Agmnt Extend 3. The following Resolution UB -10-2015 was adopted and entitled: Reso UB -10-2015, A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Amend Rule CALIFORNIA, TO AMEND WATER RULE NO. 21, WATER CONSERVATION. 21 4. A contract was awarded to Perry C. Thomas Construction Inc., to Furnish and Install Underground Perry C. Electric Substructures for the Electric Vehicle Charging Station in Accordance with Plans No. Thomas ED2014-8, in the amount of $27,157. Contract 5. SPECIAL CALL ITEM. SPECIAL CALL ITEM Spec Call Refinance Water Parity Revenue Bonds Series 2006. Reso UB -11-2015 Utilities Director Morrow presented the item stating that the minimum criteria to refinance Bonds is 5% Refinance savings of the Net Present Value (NPV), and the potential savings on the Water Parity Revenue Bonds Water Bonds Series 2006, would be greater at this time. Boardmember Rocha offered a Resolution entitled: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING AND APPROVING DOCUMENTS AND OFFICIAL ACTIONS RELATING TO THE REFINANCING OF CERTAIN WATER SYSTEM IMPROVEMENTS AND THE ISSUANCE AND SALE OF WATER SYSTEM REVENUE REFUNDING BONDS AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH. Moved by Boardmember Rocha, seconded by Vice -Chairman Carrillo, to waive further reading and adopt Resolution No. UB -11-2015, and to authorize staff to engage the services of Standard and Poor's to provide a credit rating for the new Water Bonds, by the following vote of the Board: YES: BOARDMEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NO: BOARDMEMBERS: NONE SCHEDULED ITEMS Sched Items ' Urgency Ordinance Adding a Section to the Azusa Municipal Code on Drought Penalties. Urgency Ord 2015-04 Utilities Director Morrow presented the item stating that on June 16, 2015, a public meeting was conducted Drought to inform the public about the seriousness of the drought, and to provide information on the proposed Penalties drought penalties. The State Mandate requires a 20% water conservation from 2013 use; even though 06/22/2015 PAGE TWO AL&W has strict restrictions in place, the requirement has not been met; staff continues to work on creating new incentives and providing additional education to customers; however, due to the situation, it is recommended that penalties be implemented; he gave the details of the Urgency Ordinance and how the 'penalties would be applied. Vice -Chairman Carrillo offered an Urgency Ordinance entitled: AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ADDING SUBSECTION (C) TO SECTION 78-511 TO AZUSA MUNICIPAL CODE CHAPTER 78 ARTICLE VI DIVISION 6, PERTAINING TO DROUGHT PENALTIES. Moved by Vice -Chairman Carrillo, seconded by Boardmember Gonzales, to waive further reading and adopt Urgency Ordinance No. 2015-04, by the following vote of the Board: YES: BOARDMEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NO: BOARDMEMBERS: NONE Vice -Chairman Carrillo offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL/UTILITY BOARD OF THE CITY OF AZUSA, CALIFORNIA, ADDING SUBSECTION (3) PERTAINING TO DROUGHT PENALTIES TO SECTION E -NOTICES, CITATIONS, PENALTIES, CHARGES; AND SERVICE TERMINATION OF WATER UTILITY RULE NO. 21- WATER CONSERVATION. Moved by Vice -Chairman Carrillo, seconded by Boardmember Rocha, to waive further reading and adopt Resolution No. UB -12-2015, by the following vote of the Board: YES: BOARDMEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NO: BOARDMEMBERS: NONE Ordinance Amending Division 6 the Azusa Municipal Code Regarding Water Conservation. Boardmember Gonzales offered an Ordinance entitled: Reso UB -12-2015 Add Drought Penalties Ord 2015-05 Amend AMC Chapter 78 Water AN ORDINANCE OF THE CITY COUNCIL/UTILITY BOARD OF THE CITY OF AZUSA, Conservation CALIFORNIA AMENDING DIVISION 6 OF ARTICLE VI OF CHAPTER 78 OF THE AZUSA MUNICIPAL CODE REGARDING WATER CONSERVATION. Moved by Boardmember Gonzales, seconded by Vice -Chairman Carrillo, to waive further reading, read by title only and introduce Ordinance No. 2015-05, by the following vote of the Board: YES: BOARDMEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NO: BOARDMEMBERS: NONE Divest Interest in San Juan Power Plant. Utilities Director Morrow addressed the item stating that due to changes with the electric industry and electric business, staff pursued divestiture of the utility's interest in the San Juan Coal Plant; Azusa is required to increase renewable energy to 33% by the year 2020 and to reduce its carbon output in order to meet the AB32 Anti -Coal Laws; the plant is costly to maintain and it presents environmental challenges; the 'Environmental Public Agency (EPA) reach a settlement to shut down two of the four units to reduce the contamination; San Juan Units 2 and 3 will be shut down by December 31, 2017, Unit 3 belongs to AL&W. 06/22/2015 PAGE THREE Divest Interest in San Juan Power Plant Moved by Boardmember Rocha, seconded by Boardmember Gonzales, to authorize the Utilities Director to approve execution by the Southern Cal ifomia Public Power Authority (SCPPA) of the: the San Juan Project Restructuring Agreement; Amended and Restated Mine Reclamation and Trust Funds Agreement; and San 'Juan Decommissioning and Trust Funds Agreement; the documents are necessary to implement a closure of San Juan Unit 3 Generating Station by December 31, 2017 as per the Regional Haze (NO,) settlement with the U. S. Environmental Protection Agency, by the following vote of the Board: YES: BOARDMEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NO: BOARDMEMBERS:NONE STAFF REPORTS/COMMUNICATIONS Renewable Portfolio Standard Report for Calendar Year 2014. Utilities Director Morrow presented the California Energy Commission Annual Compliance Report, in accordance with the California's Renewable Portfolio Standards (RPS); the report is required to be filed by all Publicly Owned Utilities, which documents renewable energy resources, procurement status and future renewable energy procurement plans. Due Diligence Review of Sensus USA, Inc. AMI Proposal. Staff gave the Board an update on its due diligence review of advanced metering infrastructure (AMI) proposal by Sensus USA, Inc. including trip to Sensus' facility in North Carolina in late May. Assistant Director of Customer Care and Solutions Kalscheuer noted that there has been publicity in the past about Sensus' electric meters heating up and causing fires; reference was made to written report as explaining 'some of the circumstances that can contribute to hot sockets and how Sensus has worked to address concerns. Utilities Director Morrow noted that much of the meeting time with Sensus was spent discussing Sensus' efforts to redesign its electric meters to address past concerns. Assistant Director of Electric Operations also made comments about how Sensus was seeking to address past concerns through meter redesign and how installation procedures should include a check for hot sockets. CMUA Legislative Update. Utilities Director Morrow presented the Board with the California Municipal Association (CMUA) Legislative Update for June 2015. ADJOURNMENT It was consensus of the Board to adjourn the meeting in memory of Mr. Micah Moore, Line Mechanic for the Azusa Light and Water. TIME OF ADJOURNMENT: 7:15 P.M. C`01 M1114-�a/ I NEXT RESOLUTION NO. UB -13-2015. Next Regular Meeting: July 27, 2015, 6:30 P.M. 06/22/2015 PAGE FOUR Reports Comm RPS Report Sensus USA Proposal Review CMUA Legislative Update Adjourn