HomeMy WebLinkAboutMinutes - April 23, 2018 - UBCITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY, APRIL 23, 2018 – 6:30 P.M.
Chairman: Robert Gonzales
Vice Chairman: Edward J. Alvarez
Board Member: Joseph R. Rocha
Board Member: Angel A. Carrillo
Board Member: Uriel E. Macias
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 Gonzales called the meeting to order at 6:30 P.M.
Pledge to the flag was led by Vice Chair Alvarez.
ROLL CALL: Roll call was taken by Secretary Cornejo.
PRESENT: BOARD MEMBERS: GONZALES, ALVAREZ, CARRILLO (arrived at 6:35 p.m.), MACIAS
ABSENT: BOARD MEMBERS: ROCHA
ALSO PRESENT
Elected Officials: Secretary Cornejo
City Attorney: Jeff Ferre
Staff Members: Interim Utilities Director Lehr, City Manager Gonzalez, Public Works Director Bobadilla, Assistant
Director of Water Operations Macias, Utilities Communications and Environment Programs Specialist Sagun,
Storekeeepr Alvarez, Police Captain Bertelsen, Chief Deputy City Clerk Garcia.
A. PUBLIC PARTICIPATION
None
B. UTILITIES DIRECTOR COMMENTS
Interim Utilities Director Lehr reported 9,000 pounds of paper were shredded and ten pallets of electronic office
equipment was collected at the shred-a-thon held on April 21.
C. UTILITY BOARD MEMBER COMMENTS
Chair Gonzales thanked staff for a great shred-a-thon. Members of the community had requested more shred-a-thon
events.
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D. CONSENT CALENDAR
Moved by Vice Chair Alvarez, seconded by Board Member Macias, to approve the Consent Calendar by the following
vote of the Board:
AYES: BOARD MEMBERS: GONZALES, ALVAREZ, MACIAS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: ROCHA, CARRILLO
ABSTAIN: BOARD MEMBERS: NONE
1. The minutes of the regular meeting of March 26, 2018 were approved as written.
2. The water rights lease agreements with the City of Monrovia and Valley County Water District were approved;
and the Director of Utilities was authorized to execute same pursuant to Utility Board Resolution 09-C69.
3. Well 5 project improvements outlined in Task Order Numbers 1 and 2 were accepted; the Notice of Completion
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 for recordation to the Office of the County Recorder of Los
Angeles County within ten (10) days of the Utility Board approval as required by Section 3093 of the California
Civil Code.
4. Task Order 6, Well 6 rehabilitation, was awarded to General Pump Company under the existing Master
Maintenance Service Agreement for a not-to-exceed amount of $227,328.87.
E. SCHEDULED ITEMS
1. Adjustment of the Electric Rate Schedules.
Interim Utilities Director Lehr reported adjustments are not intended to raise revenue but to realign the mechanism for
setting rates. Changes in the power supply portfolio precipitated a review of rates. He reviewed findings and
recommendations from the Burns McDonnell study, which were presented to the Utility Board in March. Staff presented
rate schedules for the Board's authorization. New rates would become effective July 1. The Power Cost Adjustment
(PCA) base rate decreased by 12.5%. Overall, energy charges would decrease and customer charges would increase.
Staff received no public comments regarding the proposed rates.
Board Member Carrillo arrived at 6:35 p.m.
Moved by Board Member Carrillo, seconded by Vice Chair Alvarez, to adopt Resolution UB-01-2018 amending Azusa
Light & Water's Electric Rate Schedules by the following vote of the Board:
AYES: BOARD MEMBERS: GONZALES, ALVAREZ, CARRILLO, MACIAS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: ROCHA
ABSTAIN: BOARD MEMBERS: NONE
2. Miller/Coors Water Rate Adjustment, Effective May 1, 2018.
Interim Utilities Director Lehr reported the waster supply agreement with Miller was implemented in 2002 and restated in
2009 when Miller and Coors merged. Terms of the agreement provided for three five-year extensions and rate
recalculation every two years beginning after May 2010. Recalculation of the rate will result in an increase of $137,500
annually.
In response to Board Member questions, Interim Utilities Director Lehr advised that Miller/Coors is aware of the
proposed rate change. The formula for calculating rates is a provision of the contract with Miller/Coors. In the fall of
each year, staff provides Miller/Coors an estimate of water supply for the following year.
PAGE 3 – 04/23/2018
Moved by Board Member Carrillo, seconded by Board Member Macias, to adopt Resolution UB-02-2018 adjusting water
rates for MillerCoors, LLC effective May 1, 2018, by the following vote of the Board:
AYES: BOARD MEMBERS: GONZALES, ALVAREZ, CARRILLO, MACIAS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: ROCHA
ABSTAIN: BOARD MEMBERS: NONE
F. STAFF REPORTS/COMMUNICATIONS
None
G. VERBAL COMMUNICATIONS
1. Water Supply Update
Interim Utilities Director Lehr reported no rainfall since the March report. The state snow pack is low at 52% of average,
a decrease from the March report. The water level in the San Gabriel Basin decreased approximately 6 inches, but water
levels in the reservoirs increased. Approximately 13,000 acre feet of water is available for release. The state water
allocation of 5,760 acre feet has not changed. Until February, ALW received water from its 2017 allocation. A note
regarding continuation of the winter watering schedule remains on the website.
In response to Board Member request in the March meeting, Interim Utilities Director Lehr provided information
regarding energy hedges. Hedging energy prices is a common practice among entities embedded in the California
Independent System Operator (ISO) control area, especially during the summer months when prices are most volatile.
ISO markets are purely economics driven and based on marginal pricing. Entities that own power generation assets can
hedge prices with gas or energy. In 2017, staff did not procure any hedges because ALW was fully resourced. In 2016,
staff procured a hedge and calculated the net value to ALW was $131,000. In 2015, the hedge cost ALW $176,000. Price
hedges are not intended to generate revenue.
In reply to questions, Interim Utilities Director Lehr indicated Resource Planning staff prepares a recommendation for
approval of the Utilities Director and purchases hedges. The Risk Management Policy allows staff to make these
decisions.
2. General Policy and Regulatory Updates
Interim Utilities Director Lehr reported AB 2208 proposes mandating procurement of geothermal generation from
Imperial Valley under Renewable Portfolio Standards (RPS). Geothermal generation is not clean but is considered a
renewable resource. Geothermal energy is very expensive, currently approximately twice the price of solar energy.
Geothermal generation is a base-loaded resource, which is convenient for resource planning. Most utilities oppose the
bill, but ALW has not taken a position. SB 1000 concerns creation of charging speed standards, recommendations for
distribution and location of chargers, and sub-metering standards for charger installations. Fifteen U.S. Senators oppose
privatization of the Tennessee Valley Authority (TVA). Private property owners are filing lawsuits to hold utilities
responsible for losses caused by their equipment or power lines during fires and mudslides. The potential liability for
SCE is $4 billion and $15 billion for PG&E.
H. CLOSED SESSION
None
I. ADJOURNMENT
The meeting was adjourned by consensus of the Utility Board.
PAGE 4 – 04/23/2018
TIME OF ADJOURNMENT: 7:07 P.M.
__________________________________________
CITY CLERK/SECRETARY