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HomeMy WebLinkAboutMinutes - March 28, 2016 - UBCITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, MARCH 28, 2016 — 6:30 P.M. Chairman: Edward J. Alvarez Vice -Chairman: Angel A. Carrillo Board Member: Joseph Romero Rocha Board Member: Uriel Edward Macias Board Member: 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 (ALW) 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 Chairman Edward Alvarez. ROLL CALL: Roll call was taken by Secretary Cornejo. PRESENT: BOARD MEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ ABSENT: BOARD MEMBERS: NONE ALSO PRESENT Elected Officials: Secretary Cornejo. City Attorney: Jeff Ferre Staff Members: City Manager Butzlaff, Utilities Director Morrow, Assistant Director Customer Care Solutions Kalscheuer, Utility Programs Specialist Reid, Assistant Director Resource Management Lehr, Utilities Administrative & Financial Services Manager Johnson, Assistant Director Electric Operations Langit, Police Captain Flemming, Senior Management Analyst Rosales, Senior Administrative Technician Cawte, Management Analyst Lacasella PUBLIC PARTICIPATION Mr. Art Morales inquired about whether there will be sufficient lighting in the proposed area of the relocated Payment Drop Box discussed in item F- 1; suggested that two Drop Boxes be installed in order to accommodate motorists wishing to make payments without exiting their vehicles on both Azusa and San Gabriel Avenues; and questioned the water rate increase as he believed there are enough funds in the reserve and an increase was not merited. 'V 11L111n3 "111E1. 1"n 1.V111IV 1l1a Utilities Director Morrow reported the possibility of blackouts over the summer due to the Aliso Canyon gas storage field leak; the Utilities Department was the recipient of the Certificate of Excellence in Reliability award for their excellent service in providing extremely reliable electric utilty to the community; and informed the Board that Pasadena has encountered issues re -licensing the Azusa Hydro Unit, due to requests by the US Forest Service for about $2 Million worth of studies inferring that the hydro unit license should not be extended so the water could come down the river rather than the conduit. 'CLOSED SESSION The Utility Board recessed into closed session at 6:40 P.M. to discuss the following: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9 One potential case The City Council reconvened at 7:02 P.M.; City Attorney Ferre announced that there was no reportable action. UTILITY BOARD MEMBER COMMENTS Board Member Macias inquired about when the greenwaste barrels for yard clippings were distributed, to which staff responded that the distribution took place in 2005. The city was looking into automated barrels, however if that is not an option due to timeframe, the city will issue the greenwaste barrels once again. Board Member Carrillo announced his first trip to on the Gold Line, which went smoothly. Election of Officers Moved by Board Member Gonzales, seconded by Board Member Rocha to elect Vice -Chairman Carrillo as Chairman for the period of March 2016 to March 2017, by the following vote of the Board: AYES: BOARD MEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NOES: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE Moved by Vice -Chairman Carrillo, seconded by Board Member Gonzales to elect Board Member Macias as Vice - Chair -man for the period of March 2016 to March 2017, by the following vote of the Board: AYES: BOARD MEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NOES: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE CONSENT CALENDAR Moved by Board Member Gonzales, seconded by Board Member Rocha, to approve Consent Calendar Items D-1 and D-2 by the following vote of the Board: AYES: BOARD MEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NOES: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE 1. The minutes of the regular meeting of February 22, 2016 were approved as written. 2. The cancellation of Purchase Order #024574 issued to Terex Utilities Inc. was ratified, the revised equipment specifications for a CHG-fueled hybrid electric bucket truck was approved and the City Clerk's Office was authorized to advertise and solicit new bids. PAGE TWO — 3/28/2016 SCHEDULEDITEMS Authorization to Mail Notice of Public Hearing to be Held May 23, 2016 for Water Rate Adjustment 'Utilities Director Morrow presented the staff report stating that water utility is approximately $2.8 million short of meeting its required 1.25 minimum Bond Coverage Ratio. As of 2013, ALW has seen an approximate 20 percent reduction in sales and an approximate 15 percent reduction in revenue. In response to the rate increase question posed during public participation, he explained that although there are funds in the bank, those reserve funds cannot be used to meet the bond coverage requirement and would decline signifcantly if rates are not increased. Discussion ensued regarding water preservation relating to the decline in water sales. Utilities Director Morrow responded by stating that the City has several years of experience with working at a 20 percent reduction level and should the State relax some of the water restrictions, there would be an increase in sales. The Utility Department has implemented a rational tier allocation assessment to take into account the size of the various water meters as they have been unbundled to promote behavior or reduce allocation. Staff recommended that the Board approve a public hearing to be held on May 23, 2016, allowing the Utilities department to have a 45 day window to inform the residents of the change in rates. Moved by Board Member Gonzales, seconded by Board Member Alvarez to approve the public hearing notice of proposed base water rate adjustment and authorize Staff to print and mail the notice to our water customers 45 days in advance of public hearing to be held May 23, 2016 by the following vote of the Board: AYES: BOARD MEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NOES: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE MillerCoors Rate Adjustment May 23, 2016 Utilities Director Morrow presented the Staff Report stating that MillerCoors, LLC is a special contract customer and ALW's largest water account customer. Their rates are to be adjusted every two years pursuant to the water supply agreement. MillerCoors' water consumption was low, therefore, their renewed rate increase would not be as significant as what has been proposed for retail customers. He responded to a question posed by the Board by stating that MillerCoors has become more efficient with their water usage and is possibly recycling their water. MillerCoors' rate would increase approximately 4.7 percent on the commodity side and approximately 44 percent on the meter side and would be implemeted beginning May 1, 2016. Board Member Rocha offered Resolution No. UB -2-2016 entitled: A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA CALIFORNIA ADJUSTING CONTRACT WATER RATES FOR MILLERCOORS, LLC. Moved by Board Member Rocha, seconded by Board Member Gonzalez to approve Resolution No. UB -2-2016 Adjusting Water Rates for MillerCoors, LLC effective May 1, 2016 AYES: BOARD MEMBERS: ROCHA, MACIAS, GONZALES, CARRILLO, ALVAREZ NOES: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE PAGE THREE — 3/28/2016 STAFF REPORTS/ COMMUNICATIONS Relocation of Azusa Light & Water Payment Drop Box to Azusa Avenue East of Main Office Building 'Utility Director Morrow reported that the Utility Department would install a payment drop box, containing a pedestiran accessable slot, in a well lit area of Azusa Avenue to allow customers to make their utility payments from their vehicles. He also clarified that a drop box would not be installed on San Gabriel Avenue. Results of the California Air Resource Board's February 17 2016 Auction of Greenhouse Gas Allowances. Utility Director Morrow reported that Staff participated in the 2016 Greenhouse Gas (GHG) Allowances auction and bought and sold simultaneously 120,000 of GHG Allowances for $1,527,600 resulting in a net zero dollars auction outcome for Azusa. Planned Procurement of Energy Product for Summer 2016 Utility Director Morrow stated that the Utility Department had a 15 Megawatt summer purchase deal with Shell Energy which expired in 2014 and an approval was granted for a replacement in 2015 at $49.00 fixed price. The Department requested permision to put a competitive procurement in place for 2016 and would be providing an update of quotes received to the Board at a later time. Drought Update Utility Director Morrow provided an update on the drought stating that the tentative State Water Project allocaiton for this year is 45% which is the highest level since 2012. The San Gabriel Valley Municipal Water District's pipeline to the Upper Canyon Basin, which brings water to Azusa, has a valve leak and the repair is scheduled to begin in August. Staff ' was working on alternative solutions to obtaining that water. The two days per week watering system, implemented by the State, is scheduled to commence April 1, and ALW has begun to inform residents. ALW has also been working with the Parks Department to ensure that the trees are receiving adequate water. California Municipal Utilities Association (CMUA) Legislative Update Utility Director Morrow stated that at next Utility Board meeting, the Board would be presented with some bills to review, discuss and provide input on if warranted. ALW works serveral other agencies in addition to the CMUA for lobbying and legislative work and should any of the Board Members wish to attend any of the meetings, arrangements can be made. ADJOURNMENT The meeting was adjourned by consensus of the Utility Board. TIME OF ADJOURNMENT: 7:50 P.M. Qft"EkXW CRETARY PAGE FOUR — 3/28/2016