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HomeMy WebLinkAboutD-1.1. Jan 22 UB MinutesCITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JANUARY 22, 2018 – 6:30 P.M. Chairman: Uriel E. Macias Vice Chairman: Robert Gonzales Board Member: Joseph R. Rocha Board Member: Edward J. Alvarez Board Member: Angel A. Carrillo 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. Chair Macias called the meeting to order at 6:30 P.M. Pledge to the flag was led by Board Member Gonzales. ROLL CALL: Roll call was taken by Secretary Cornejo. PRESENT: BOARD MEMBERS: MACIAS, GONZALES, ROCHA, ALVAREZ, CARRILLO (arrived at 6:31 p.m.) ABSENT: BOARD MEMBERS: None ALSO PRESENT Elected Officials: Secretary Cornejo City Attorney: Marco Martinez Staff Members: Interim Utilities Director Lehr, Assistant Director Customer Care Solutions Kalscheuer, Assistant Director of Electric Operations Langit, Assistant Director of Water Operations Macias, Utilities Communications and Environment Programs Specialist Sagun, Utility Programs Specialist Reid, Senior Management Analyst Lacasella, A.PUBLIC PARTICIPATION Jorge Rosales commended staff for the street light project. The new lights look good and light the streets well. Mr. Rosales expressed concern about the range of bids in Item D-6. Regarding Item F-1, the rebate should be publicized in the community. B.UTILITIES DIRECTOR COMMENTS Interim Utilities Director Lehr recognized the Senior Electrical Engineer who supervised the street light project. Water Project W-289 (Item D-6) was originally contemplated some three to four years ago but was eventually postponed until now. As to the spread in the bid amounts, presumably the bids reflect the demand for service and full employment in the country and the area. Assistant Director of Water Operations Macias reported 36 parties showed interest in Item D-6, but only 12 submitted bids. T.A. Rivard submitted the winning bid, which staff felt was in line with today’s market. D-1 UB-4 APPROVED UTILITY BOARD 02/26/2018 Interim Utilities Director Lehr advised that 2018 will be a busy year with regulatory work for the electric utility and many capital projects for the water utility. Creation of the Regional Transmission Organization (RTO) could expand operation of the ISO and may be fairly complex. The SCADA project is ongoing. The first phase of AMI is underway, and the project will extend over three years. In response to Board Member questions, Interim Utilities Director Lehr explained that RTO would be a quasi- operations/market organization in the western U.S. ISO hopes to become the agency that administers the RTO and to expand its role as an operator of both high-voltage transmission resources and markets. Western states other than California are concerned about composition of the RTO Board, which they fear may favor California. C. UTILITY BOARD MEMBER COMMENTS None D. CONSENT CALENDAR Moved by Board Member Carrillo, seconded by Vice Chair Gonzales, to approve the Consent Calendar by the following vote of the Board: AYES: BOARD MEMBERS: MACIAS, GONZALES, ROCHA, ALVAREZ (Items D 2-12) CARRILLO NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: ALVAREZ (Item D 1 only) 1. The minutes of the regular meeting of November 27, 2017 were approved as written. 2. Aldridge Electric, Incorporated's completion of the street light retrofit project was found to be consistent with plans and specifications for LED Project LD2017-1; the Notice of Completion for CIP Project No. LD2017-1 was approved; the Mayor was authorized to execute the document on behalf of the City; and the City Clerk was authorized to submit the Notice of Completion document for recordation at the Office of the County Record of Los Angeles County within ten days of the Utility Board approval as required by Section 3093 of the California Civil Code. 3. The competitive purchase requirements of Section 2-521(a), Article VII, Chapter 2 of the Azusa Municipal Code were waived; and the issuance of a Purchase Order to National Auto Fleet Group in an amount not to exceed $94,338.44, including sales tax and delivery charges, for a 2018 Ford F650 Regular Cab 4x2 Gasoline with CTEC Dump Body was approved. 4. The competitive purchase requirements of Section 2-521(a), Article VII, Chapter 2 of the Azusa Municipal Code were waived; and the issuance of a Purchase Order to National Auto Fleet Group in an amount not to exceed $36,963.57, including sales tax and delivery charges, for a 2018 Chevrolet Silverado 2500HD (CC25903) 2WD Regular Cab Work Truck with Trademaster Service Body and Material Rack was approved. 5. Plans and specifications for Project W-280A were accepted; and staff was authorized to solicit bids for Project W- 280A, installation of SGVMWD Interconnection to the Hsu Water Treatment Plant. 6. The Award of Contract to T.A. Rivard, Inc. of Riverside, California, for Water Project W-289 was approved; and the Mayor was authorized to execute the Contract. 7. Task Order #1 Construction Inspection Services for Azusa Avenue Water Main Replacement Project W-289 was awarded to Stantec Consulting Services, Inc. for a not-to-exceed price of $78,360 in accordance with Azusa Municipal Code Section 2-518. UB-5 8. A multi-year sole-source Maintenance Service Agreement with ID Modeling, Inc. in an annual amount not to exceed $55,560 was approved in accordance with Azusa Municipal Code 2-517(a)(22); and, the Mayor was authorized to execute the Maintenance Service Agreement. 9. A one-year sole-source Professional Services Agreement with ID Modeling, Inc., in an amount not to exceed $49,500 was approved in accordance with Azusa Municipal Code 2-517(a)(22); and the Mayor was authorized to execute the Professional Services Agreement. 10. The Director of Utilities was authorized to approve an addendum to the contract with inContact Inc. to add the InView Messaging Module to the contract scope of service. 11. The Maintenance Services Agreement with Reinhausen Manufacturing Incorporated (RMI) was approved; the Director of Utilities was authorized to execute the agreement; and the issuance of a Purchase Order to RMI in an amount not to exceed $49,998.52 was authorized pursuant to Azusa Municipal Code Section 2-520(b)(2). 12. Staff was authorized to release the proposed Request for Proposals for Executive Search Firm services to recruit for the Director of Utilities. E. SCHEDULED ITEMS None F. STAFF REPORTS/COMMUNICATIONS 1. Crediting Value of Greenhouse Gas (GHG) Allowances to Azusa Electric Customers Interim Utilities Director Lehr reported that the first bill of 2018 for every electric account will reflect a credit of $62.04. The total credit amounts to just over $1 million. The funds come from the sale of excess greenhouse gas allowances. This is the first time the credit has been reflected on customers' bills. Previously, the funds were blended in the Power Cost Adjustment volumetrically, which is no longer allowed. The reason for the credit is shown on the bill and on the electric utility webpage. In response to Board Members' questions, staff indicated approximately half of all customers have received bills with the credit as of the date of the meeting. As a result of the credit, a significant number of customers have avoided disconnection of electric service. If a customer's bill is less than $62.04, then the remaining portion of the credit will be carried forward to the next month's bill. A number of customers have called to thank ALW for the credit. 2. 2017 Renewable Portfolio Standard Update Interim Utilities Director Lehr advised that ALW was fully compliant with the requirement for 27% of served energy to be obtained from CEC certified renewable resources in calendar year 2017. Staff banked excess renewable resources for future years. The annual requirement will increase to 29% in 2018, 31% in 2019, and 33% in 2020. Staff will present the formal report to the Utilities Board prior to submission to the CEC in June. In reply to questions from the Board, Interim Utilities Director Lehr clarified that CEC did not allow large hydro (Hoover) to be counted toward the mandate. CEC certified renewable resources provided approximately 34% of electric power in 2017. 3. Azusa Successfully Takes Over the Scheduling Responsibility for DSR 2 Photovoltaic Project Interim Utilities Director Lehr reported that ALW has consolidated resources by exchanging its 2 MW share in Astoria for Colton's 2 MW share in DSR 2. ALW is now the sole controlling entity of DSR 2 and is responsible for scheduling, dispatching, and settling energy with the ISO. This consolidation will provide a savings of about $600,000. The process was complex, and staff did a good job. UB-6 Policy and Regulatory Updates Interim Utilities Director Lehr advised that wildfires have led to scrutiny of utilities' clearing of rights-of-way under transmission and distribution lines and to lawsuits. SDG&E was found culpable for 2007 wildfires, and the PUC denied rate recovery. Community Choice Aggregation (CCA) entities and apportionment of stranded resource costs are a contentious issue. A number of cities in the San Gabriel Valley have conducted meetings about CCAs, and Los Angeles County has established a CCA. Negotiations around SB 100, which pertains to ISO, RTO, increased RPS, and storage, have begun in the Legislature. ALW is currently receiving 7,000 acre feet of its 2017 State DWR water allocation and spreading it in the percolation ponds. This should continue until April. Final 2018 allocations are still discussed, but ALW will receive approximately 15% of the maximum allowable. The water level in the Main Basin has recovered somewhat but remains about 19 feet below the minimum sustainable operating level. Precipitation has been measured at under 3 inches compared to the historic 11 inches. G. CLOSED SESSION None H. ADJOURNMENT The meeting was adjourned by consensus of the Utility Board. TIME OF ADJOURNMENT: 7:05 P.M. __________________________________________ CITY CLERK/SECRETARY UB-7