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HomeMy WebLinkAboutAgenda Regular UB 11-27-2017 AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AZUSA LIGHT & WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 NOVEMBER 27, 2017 6:30 P.M. AZUSA UTILITY BOARD URIEL E. MACIAS CHAIRPERSON ROBERT GONZALES VICE CHAIRPERSON JOSEPH R. ROCHA BOARD MEMBER EDWARD J. ALVAREZ BOARD MEMBER ANGEL A. CARRILLO BOARD MEMBER 6:30 p.m. Convene to Regular Meeting of the Azusa Utility Board. • Call to Order • Pledge to the Flag • Roll Call A. PUBLIC PARTICIPATION 1. (Person/Group shall be allowed to speak without interruption up to five (5) minutes maximum time, subject to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker’s questions or comments shall be handled after the speaker has completed his/her comments. Public Participation will be limited to sixty (60) minutes time.) B. UTILITIES DIRECTOR COMMENTS C. UTILITY BOARD MEMBER COMMENTS D. CONSENT CALENDAR The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under SPECIAL CALL ITEMS. 1. Minutes. Recommendation: Approve minutes of meeting on October 23, 2017 as written. 2. Approval of the Notice of Completion for the Water Capital Improvement Supervisory Control and Data Acquisition System and Radio Communication Upgrade Project for the Water Division. Recommendations: 1) Accept the project improvements; 2) Approve the Notice of Completion; 3) Authorize the Mayor to execute the document on behalf of the City; and 4) Authorize the City Clerk to submit the Notice of Completion for recordation to the Office of the County Recorder of Los Angeles County, within ten days of the UB approval, as required by Section 3093 of the California Civil Code. 3. Ratify Termination of the Professional Services Agreement with PMCM and Approve the Issuance of a New Purchase Order to Leidos Engineering, LLC as a Substitute for Performing the Scope of Work Associated with Azusa Substations Capacity Upgrades. Recommendations: 1) Ratify termination of the Professional Services Agreement with PMCM; 2) Approve issuance of a Purchase Order to Leidos Engineering LLC (Leidos) in an amount not to exceed $49,000; and 3) Authorize the Mayor to execute, in a form acceptable to the City Attorney, the Professional Services Agreement (PSA) with Leidos. 4. Bureau of Reclamation Watersmart Grant Agreement and Grant Management Proposal by Blais & Associates. Recommendations: 1) Approve the WaterSmart Grant Agreement with the Bureau of Reclamation; 2) Approve Professional Services Agreement with Blais & Associates for grant management services, subject to City Attorney’s final review; and 3) Authorize the Mayor to execute, in a form acceptable to the City Attorney, the above documents on behalf of the City of Azusa. 5. Second Amendment of Contract with IDS Group for Architectural and Construction Management Services for Lobby Remodel Project: Recommendations: 1) Approve the attached Second Amendment to the Professional Services Agreement with IDS to extend the term of agreement by six months, to December 31, 2018, and the additional not-to-exceed amount of $24,800; and 2) Authorize the Mayor to execute the contract amendment, in a form acceptable to the City Attorney. 6. Cancellation of December Utility Board Meeting. Recommendation: 1) Cancel the scheduled Utility Board meeting of December 26, 2017. E. SCHEDULED ITEMS 1. None. F. STAFF REPORTS/COMMUNICATIONS 1. Update on Street Light Retrofit Projects 2. South Water Tank Condition Update 3. Fiscal Year 2017-2018 First Quarter Budget Reports for Water and Electric Funds 4. Federal Legislative Update G. CLOSED SESSION 1. None. H. ADJOURNMENT 1. Adjournment “In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the meeting or time when special services are needed will assist staff in assuring that reasonable arrangements can be made to provide access to the meeting.” “In compliance with Government Code Section 54957.5, agenda materials are available for inspection by members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard, Azusa City Library - 729 N. Dalton Avenue, and Azusa Light & Water-729 N. Azusa Avenue, Azusa CA.” I, Stephanie Urich, Senior Administrative Technician, declare that I am an employee of the City of Azusa. On November 22, 2017 at 4:30 p.m. the agenda for the Utility Board regular meeting on Monday, November 27, 2017, was posted in the City Clerk’s Office, 213 E. Foothill Boulevard; the City Library, 729 N. Dalton Avenue; Azusa Light & Water, 729 N. Azusa Avenue; and the City’s webpage at www.ci.azusa.ca.us. I declare under penalty of perjury that the foregoing is true and correct. __________________________________ Senior Administrative Technician Azusa Light & Water UtilityBoard Meeting .... 1' y .-x I �� �yJ^ * :... .„. ,,. . a * N.- . ' * -* .,a. November 27, 2017 Chair Uriel Macias AZUSA i.I G H & W A T E u Utilities Director Comments 2 AZUSA Utility Board Comments 3 AZUSA Consent Agenda • October 23, 2017 minutes • Notice of Completion for Water SCADA & Radio ($199,500) • Substations capacity upgrade - Scope of Work Agreement Termination and Substitution ($49,000) • BOR WaterSmart Grant Agreement & Management (approx. $1 .02 million) • L&W Lobby Remodel Contract Amendment ($24,800) • Cancellation of December 26, 2017 Utility Board Meeting 4 AZUSA Street Lights Retrofit Project Update (F-1 ) • Two separate Street Light LED Retrofit projects: — Foothill and Alosta Ave, between City limits • Long lead for mast arms • Completion expected by the end of December, 2017 — Azusa Ave. between Fifth and Ninth streets • Staff in process of procuring LED Lamps • Expected completion in early 2018 stiw 5 AZUSA L.I G H ' R W A' F u South Water Tank Condition Update (F-2) • Horizontal crack through the center of South Tank — Tank dewatered & Inspected Inside by ALW & Consultants • Inside of tank was evaluated and photographed • Sediment was removed — Several contractors onsite and invited to propose solution • Potential remediation approaches possible — Interior Coating — Crack Sealing — Concrete patching — Full Tank Replacement — Tank back in service on November 8, 2017 • after chlorination and water quality sampling 6 AZUSA H 7 $ A4 FP FY18 1st Quarter Financial Report (F-3) Closing Opening Balances- Balances- Permanent Permanent accounts accounts $I Financial Transactions for the Statements f period End of 01, period Adjustments Azusa Utility Board November 27, 2017clW 7 AZUSA , P Background • Staff regularly reviews the financial status of the Water and Electric funds • Numbers are preliminary and unaudited r,� r 8 AZUSA Water • Positive cash flow of $0.5M • Total Revenues for the quarter at 26% of budget • Operating Expenses at 23% of budget • Retail water sales up 7.5% over 1st quarter last FY. • Debt service coverage of 1 .87 is good ( 1 .25 min. ) • Cash Reserves at $24.6M r`� r riWa. 9 AZUSA c . b 'NA' F R Consumption and Cash R eserves Fiscal Year E nd 1st Qtr E nded Percent of Prior 6130/17 9130117 Year Consumption-CCF: 6,172,644 2,125,058 34% Cash and Investments before transfers:(') $ 27,868,904 $ 28,410,235 102% Cash and Investments after loans to other funds:(I) $ 23,814,750 S 24,587,624 103% Budget Line Item Budget ActualsThru Percent of FY 17-18 9/30/2017 Budget Revenues: Retail Billing Amounts(3) $ 19,157,532 $ 5,435,967 28% Other Revenues''' 2,445,413 191,436 8% I /ater Interest Income184,960 46,347 25% Total Revenues S 21,787,906 $ 5,673,749 26% Expenses: Production 2,894,235 753,298 26% Purchased Water 4,762,832 1,116,038 23% Transmission and Distribution 2,903,944 616,158 21% Customer Accounting and Sales 4,247,493 846,967 20% Administrative and Engineering 1,786,785 430,668 24% Franchise Fees 381,151 116,006 30% Debt Service Requirem ents(6) 4,086,963 1,021,741 25% Total Operating Expenses S 21,063,403 S 4,900,875 23% Change in Cash From Operations $ 724,503 S 772,874 Capital Investments&Transfers: Capital Outlays and Projectsm 4,920,669 169,053 3% Transfers Out!Bl 249,960 62,490 25% Total Capital Investments&Transfers $ 5,170,629 S 231,543 4% Net Increase(0 ecreese)in Cash/Reserve $ (4,446,126) $ 541,331 r� f 0 ebt Coverage R atio(3) 1.27 1.87 / 1 10 AZUSA LI GH ' & 'N A? FN Electric • Cash flow positive at $2.2M • Total Revenues for the quarter at 32% of annual budget • Operating Expenses at 27% of budget • Debt coverage of 15.78 is outstanding • Retail electric sales up 2% over 1st quarter of last FY • Cash Reserves at $27M r 11 AZUSA GH R 'N 4' L N Consumption and Cash Reserves Fiscal Year End 1st Qtr Ended Percent of 6/30/17 9/30117 Prior Year Consumption-kWh: 255,975,406 79,989,639 31% Cash,Investments&Cash Reserves:Pi $ 24,841,645 $ 27,041,493 109% Budget Line Item Budget Actuals Thru Percent of FY 17-18 913012017 Budget Revenues: Retail Billing Amounts P) $ 34,292,900 $ 11,198,286 33% Resale Revenue(3) 3,479,486 834,446 24% Other M iscella neo us Revenue 295,000 53,214 18% EI ectri c Interest Income 113,500 12,675 11% Total Operating Revenues $ 38,180,886 $ 12,098,621 32% Expenses: Purchased Pover 31 17,459,287 5,544,282 32% Transmission/Dispatching(3) 4,623,314 926,600 20% Operations and Maintenance 3,581,196 830,591 23% Administrative and General(4) 5,236,286 1,039,131 20% Franchise and In-Lieu-Tax 3,429,290 1,122,883 33% Debt Service Requirements(5) 952,690 238,173 25% Total Operating Expenses $ 35,282,063 $ 9,701,660 27% Change in Cash/Reserves From Operations $ 2,898,823 $ 2,396,961 -17% Capital Investments&Transfers: Capital Outlays and Improvement Projects 2,487,025 140,679 6% Transfers Out 225,565 56,434 25% Total Capital Investments&Transfers $ 2,712,589 $ 197,112 7% Net Increase(Decrease)in Cash/Reserve $ 186,234 $ 2,199,849 10. r Debt Coverage Ratio(6) 7.64 15.78 1 1 12 AZUSA L I G H - b �N A ' f N Federal Legislative Update (F-4) • Selected Items from November update to SCPPA — Congress • Potential elimination of tax exemption for advanced refunding bonds • H.R 3043 Hydropower Policy Modernization Act 9 (SCCPA endorsed it) • S.1460 Revised Energy Bill to be reconsidered (easies requirements for hydropower relicensing) — Tax reform • First draft released by House W&M Committee included: — Continuation of tax excemption of muni bonds — Repeal of PTC for wind energy — Phasing out of ITC for solar sow siow 13 AZUSA F4 continued — Other items of interest • Wildfire prevention — H.R. 2936; FEMA funding for fighting certain wildfires, study effectiveness of drones in fire fighting — S. 2068; enhancement of forest management and streamlining of environmental reviews • Pole attachments (FCC clarifying fact sheet, Oct. 26, 2017) — Exclusion of capital costs recovered via make-ready fees from pole attachment rates — 180-day window for resolution of pole attachment related matters — Allowing local incumbent carriers (LEC) to access infrastructure owned by other (competing) LECs 14 AZUSA t_, GH - & vvA ER Questions/Comments r., Mal "."0" 15 AZUSA L I G I-f '. & 'h A 7 ( 4?