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HomeMy WebLinkAboutD-1. Jan 27 UB MinsCITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JANUARY 27, 2014 – 6:30 P.M. The Utility Board/City Council of the City of Azusa met in regular session, at the above date and time, at the Azusa Light and Water (AL&W) Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Vice-Chairman Gonzales called the meeting to order. Pledge to the flag was led by Boardmember Alvarez ROLL CALL: Roll call was taken by Secretary Cornejo: PRESENT: BOARDMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA ABSENT: BOARDMEMBERS: MACIAS ALSO PRESENT Elected Officials: City Clerk/Secretary Cornejo. Staff Members: City Manager Makshanoff, City Attorney Ferre, Director of Public Works/Assistant City Manager Haes, Utilities Director Morrow, Police Chief Gonzalez, Assistant Director of Electric Operations Langit, Assistant Director of Resource Management Lehr, Information Officer Quiroz, Assistant/Deputy City Clerk Hernandez. PUBLIC PARTICIPATION None was given. UTILITIES DIRECTOR COMMENTS Utilities Director Morrow presented to the Board pictures and a short video of the recent Colby Fire, depicting images of how close the fire was to the Water Treatment Plant and the firefighters guarding it, fortunately there was no damage to it; however, they are foreseeing future problems of potential mud slides at the canal by the hillside; currently the ditch is being cleared of all debris from the fire; he thanked all first responders for their service, and wished everyone a happy new year. Discussion was held between Boardmember Carrillo and Director Morrow regarding an energy line, which serves the hilltop reservoir, that was de-energized during the fire as a safety precaution to avoid additional damage to properties had the fire reached it; as a result of the shutdown, a few homes lost temporary service; by mid-day of the first day, there was enough evidence that the fire would not bother any of the electric facilities, and the power was restored; L&W has remote diagnostics, which are monitored around the clock; during the fire approximately 12 city employees worked after hours, as a safety precaution. Call to Order Flag Salute Roll Call Also Present Public Participation Director’s Comments Report on Colby Fire Discussion D-1 APPROVED UTILITY BOARD 2/24/14 UTILITIES BOARD MEMBERS COMMENTS Boardmember Carrillo thanked Chairman Gonzales for a job well done in chairing the meetings in absence of Chairman Macias. The CONSENT CALENDAR consisting of Items D-1 through D-5, with the exception of items D-2 and D-3, which were handled under the Special Call portion of the agenda, was approved by motion of Boardmember Carrillo, seconded by Boardmember Rocha, and carried by the following vote of the Board: YES: BOARDMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA ABSENT: BOARDMEMBERS: MACIAS 1. The minutes of the regular meeting of November 25, 2013 were approved as written. 2. SPECIAL CALL ITEM. 3. SPECIAL CALL ITEM. 4. The construction contract was awarded to Concept Consultant Incorporated, in the lump sum amount not-to-exceed $98,900, for furnishing and installing the precast concrete fence wall at the Electric Yard located at 1020 W. 10th Street. 5. Staff was authorized to partner with Southern California Public Power Authority (SCPPA) to submit a grant application to the California Energy Commission to install an Electric Vehicle Charging Station (DCFC) within the City of Azusa; and the necessary 25% cost match, if SCPPA is successful in obtaining grant funds, was approved. SPECIAL CALL ITEMS D-2: Reject Bids for Project LD2013-10, Furnish and Install Underground Substructures along Foothill Boulevard and Dalton Avenue. D-3: Award of Professional Services Agreement to MWH Corporation, for Consulting Engineering Services to Prepare a 2014 Update of the Water Division’s 2005 Water Master Plan Update. Mayor Rocha addressed the items, requesting the reason why one bid was being rejected, but not the other, as both received single bidders. Utilities Director Morrow responded that it is preferred to receive multiple bids to compare prices and chose a fair price; bidding is a lengthy process, and staff recommends the best bid presented; the single bid on Item D-2, was very high, it came at an approximate 60% higher than what staff estimated; the single bid on Item D-3, staff based the estimate on similar jobs previously done, and the bidder was close to what was estimated, in addition the sole bidder has the experience required for this project. Consent Item D-2: The Board took an action to reject the bid from Perry C. Thomas Construction, Inc., and to authorize the City Clerk to re-advertise the project and solicit formal bids for the furnishing and installing of underground electric substructures in the area as depicted in drawing ED2013-10; it was moved by Boardmember Rocha, seconded by Boardmember Carrillo and carried by the following vote of the Board: YES: BOARDMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA ABSENT: BOARDMEMBERS: MACIAS 01/27/2014 PAGE TWO Board Members Comments Consent Calendar Roll Call Vote Min Appvd Spec Call Spec Call Concept Consult Const Contract SCPPA Grant for EV Charger Station Spec Call Underground Electric Bid Water Master Plan Bid Discussion Re. Consent Items D-2 and D-3 Reject Bids Underground Electric Substructures Consent Item D-3: The Board took an action to award the contract for consulting engineering services to prepare a 2014 update to the Water Division’s 2005 Water Master Plan to MWH Corporation; it was moved by Boardmember Rocha, seconded by Boardmember Carrillo and carried by the following vote of the Board: YES: BOARDMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA ABSENT: BOARDMEMBERS: MACIAS STAFF REPORTS/COMMUNICATIONS Athens Services Cost Review. Utilities Director Morrow gave an update on Athens Services Cost Review of an increase of transportation cost to haul waste to a new destination, stating that a meeting was held in November 2013, to discuss moving forward in obtaining consulting services to review cost; Azusa’s contract with Athens requires mutual agreement in choosing a consultant for the review, and an agreement was reached; in December 2013, assisted by City Attorney BB&K, staff negotiated and drafted a confidentiality agreement between Athens and R3 Consulting Group; due to prior commitments, the consultant was not able to start the review until after New Year’s Day; a large kick off meeting with Athens took place, and the consultant has spent some time reviewing Athens’ books; they require more time for review and hope to present something to the Board at the next meeting; part of the reason why staff is accelerating the analysis, is due to the time expiring to choose El Sobrante through Waste Management, as an alternative; Waste Management has given an extension since the 90 day period has expired. Water Supply Update. Utilities Director Morrow gave an update on the current water supply stating that 2013 was the worst water year in history, and it may be the worst drought; the reservoirs in northern California are running low, the snow pack is down to approximately 13% of the normal amount for this time of year, the San Gabriel Dam is almost empty, the State Water Project is down to 5% allocation from its normal 20% to 30%, and it could go down to 0% this year, and Folsom Lake is at 18% from normal capacity; Metropolitan Water District (MWD) currently has water stored, they bring it from the Colorado River through an aqueduct; Azusa L&W is not considering to purchase water from the MWD at this time, as their water is expensive; staff will continue searching for other alternatives for the least cost possible, but it is important for the public to recognize the dire situation; Azusa has water rights, but that doesn’t mean anything if there is no water; on January 17, 2014, the Governor officially announced the drought, and requested that all Californians reduce consumption by 20%; on February 24, 2014, Azusa L&W staff will be recommending to move from Phase II to Phase III of the drought shortage plan, which consists of 2 days a week of watering, and will establish 3rd tier pricing that consists of an approximate 15% increase, to be implemented on May 1, 2014; between that time, program software update will take place as well as communications with the public. Boardmember Carrillo addressed the item stating that the last time Azusa went through the conservation phase, customers were able to conserve; however, it impacted the City’s finances and prices were raised in order to be able to meet debt obligations; he expressed concern about the City’s finances being affected should the 20% conservation be accomplished and, in addition, having to ask residents to conserve and then reward them by raising prices. Utilities Director Morrow explained that Phase III may either cause loss or increase in revenue, if water is conserved, purchasing expensive water may not be needed, this could help offset the fiscal impact of reduced sales; the goal of Phase III is to provide some revenue stability, if consumers are able to conserve. 01/27/2014 PAGE THREE Award bid to MWH Consult Eng Svcs Rprts/Comm Athens Service Cost Review Water Supply Update A. Carrillo Comments Discussion Discussion was held regarding the last conservation phase in Azusa that reached 20%; since that time, usage has increased roughly by 5%, which may be due to the economy; 50% to 65% of residential use is outside watering; customers will be educated on how long to water outside, use less and still keep the yard green; the next step would be Phase IV, which is a 1 day a week outside watering; Azusa’s water patrol does one-on-one education, which has a better effect in getting the message across; two additional part-time staff members will be hired to assist in the education efforts; Azusa L&W has 110,000 customers who need to have this information and to understand the situation; this issue was presented at a San Gabriel Valley Council of Government (SGVCOG) meeting for cities to get the message to consumers; the San Gabriel Water Association is also working on getting a message out to the public. Mr. Mike Touhey, Director to the San Gabriel Upper Water District addressed the item stating that the District did store water during wet years, but it does not mean that it will always be available for an extended period; the District has been able to keep reasonable rates, and at the same time keep water flowing; Sacramento does not have water meters, residents pay a flat fee; they are in the process of installing water meters by 2025; the District is working on ways to get the message across for all agencies to conserve. Utilities Director Morrow responded to a question posed by Boardmember Alvarez regarding improving infrastructure to increase the water storage capacity, explaining that at the present time Azusa does have storage capacity, but there is no water to store; there has not been much for the past few years, and the storage sites that are available are almost empty. Potential Interest in Procuring Renewable Power from Puente Hills Bio-Methane Facility (Landfill). Utilities Director Morrow gave information regarding Azusa L&W interest in a project to procure renewable power from Puente Hills Bio-Methane Facility; this is a base load type of arrangement v. solar; solar has its downfalls as it responds according to changes in the sun; staff believes that this plant would be of benefit to the city, as it possesses no development risk since it is already operating and is located in our region, opposed to San Juan which is planned for chutdown by the end of 2017. Discussion was held regarding San Juan Unit, which Azusa L&W does not need, most of its energy was marketed or sold since it was difficult to transport it to California; half of what was needed, was replaced with the Lodi Energy Center, the remaining 25% is for renewable projects to meet sate goals; Puente Hills is an around the clock operation, same as San Juan; Staff continues to work on additional diverse energy projects, which can be more beneficial to meet energy needs. Foam Recycling Program. Utilities Director presented a foam recycling program by Dart Company, based in Corona California; Azusa L&W currently has a 1 day collection event for other recyclables, and staff can reach out to the public to see the kind of interest from residents on this project, and if a drop off site can be established; staff will also need to educate the public on storage and the rules that need to be followed to submit foam for recycling; he gave an overview of the company, how it started and how they manufacture various products as they are the largest manufacturer of foam cups worldwide. Utilities Director Morrow responded to a question posed by Mayor Rocha stating that it would be better to have just one central location for collection sites, due to the expense in staffing locations. CLOSED SESSION The Utility Boardmembers Recessed to closed session at 7:14 p.m. to discuss the following: 01/27/2014 PAGE FOUR Discussion Mr. M. Touhey SGVUWD Comments A. Alvarez Comments Renewable Energy, Puente Hills-Bio Methane Facility Discussion Foam Recycling Program Closed Session CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Paragraph (1) of subdivision (d) of Government Code Section 54956.9) City of Azusa, et. al. v. Ana J. Matosantos, et. al. (Case No. 34-2013-80001540) Superior Court of California, County of Sacramento The Utility Board reconvened at 7:36 p.m., Attorney Ruben Dura from Burke Williams and Sorensen Law Firm, representing the Utility Board, announced that the Boardmembers took an action to authorize to file an appeal on the aforementioned case; it was moved by Board Member Carrillo seconded by Board Member Alvarez and carried by the following vote of the Board: YES: BOARDMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA ABSENT: BOARDMEMBERS: MACIAS It was the consensus of the Boardmembers to adjourn the meeting. TIME OF ADJOURNMENT: 7:39 P.M. ________________________________________ SECRETARY NEXT RESOLUTION NO. 2014-C8. *Indicates Chairman Macias Absent. Existing Litigation v. Moatosantos/ County of Sacramento Adjourn 01/27/2014 PAGE FIVE