HomeMy WebLinkAboutMinutes - December 23, 2002 UB z,„
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'AZUSA
CITY OF AZUSA
MINUTES OF THE REGULAR
•
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, DECEMBER 23, 2002 - 6:30 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and time
in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue,
Azusa, California.
Councilmember Stanford called the meeting to order. Call to Order
OLL CALL Roll Call
1kESENT: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON,
MADRID
ABSENT: COUNCILMEMBERS: NONE
ALSO PRESENT: Also Present
City Attorney's Ferre and Martinez of BBK, City Manager Cole, Director of Utilities Hsu,Assistant
to the Director of Utilities Kalscheuer, Assistant Director of Customer Care and Solutions Vanca,
Assistant Director of Resource Management Tang, Electrical Engineer Langit, City Clerk Mendoza.
Public Participation Pub Part
Utilities Director Hsu introduced Mr.Steven Yang, the new Administrative Technician, in the Azusa Intro S. Yang
Light and Water Department that will be assisting with the preparation of the Agenda/Minutes for Admin Tech
the Utility Board meetings as well as other duties in the department.
The CONSENT CALENDAR consisting of Items II-A through II-G, were approved by motion of Consent Cal
Chairperson Chagnon, seconded by Councilmember Hardison, and unanimously carried with the ll-E &II-F
exception of items II-E and F, which were considered under the Special Call portion of the Spec Call
Agenda.
Min appvd
The minutes of the regular meeting of November 25, 2002, were approved as written.
Purchase
B. Authorization was given to waive formal bidding procedures and award the purchase of a Backhoe
John Deere Backhoe to Coastline Equipment in the amount of $56,949.73 under the Coastline
California Multiple Award Schedule (CMAS Contract No. 4-01-38-0012A).
12/23/02 PAGE TWO
C. Approval was given to adopt specifications for a Hydro Excavation (Vacuum) Truck and Spec Hydro
authorization was given to the City Clerk to advertise for bids. Exca Truck
D. Approval was given to amend the blanket purchase order to the Upper San Gabriel Valley Amend P.O.
Municipal Water District in the amount of$80,000 for the fiscal year ending June 30, 2003. USGVMWD
`r- SPECIAL CALL ITEM. Spec Call
F. SPECIAL CALL ITEM. Spec Call
G. The plans and specifications for the "Traffic Signal Improvements at the Intersection of Plans &Specs
Gladstone and Pasadena" were approved and the City Clerk's Office was authorized to Traffic Signal
advertise for bids. Impvmts
Special Call Items Spec Call
Items
Councilmember Rocha addressed item regarding consulting service agreement for sewer-line Rocha
improvements projects asking how residents would be notified that the streets were going to be in Comments
disrepair and the time frame for the project.
Director of Public Works Nakasone responded stating that residents would be notified before the Dir PW
project begins in approximately March or April of 2003. Response
Moved by Councilmember Rocha,seconded by Councilmember Stanford and unanimously carried Agrnt w/RCE
to approve the Consulting Service Agreement with RCE Consulting Engineers for the Sewer-line Sewer Line
Improvements project in the amount of$128,805. Impvmts
G ncilmember Rocha addressed item regarding the Pavement Management Plan Improvements, Rocha
`ing that earlier this year he asked about the alley that runs from Alameda to Pasadena between Comments
First and Second Streets,which was supposed to be on the September workplan, and noted that
the alley is in need of clean up. He asked what the status of the alley was, since there are
drainage problems, etc. Chairperson Chagnon asked when the re-stripping of cross walks on
Ninth Street would be completed.
Director of Public Works Nakasone responded stating that he would look into both matters. Dir PW
Moved by Councilmember Rocha,seconded by Councilmember Stanford and unanimously carried .Specs Pvmt
to approve specifications for the Pavement Management Plan Improvements project. Mgmt Plan
Scheduled Items Sched Items
Assistant Director of Customer Care and Solutions Vanca provided a presentation on the results of K. Vanca
a Customer Survey conducted with regard to the Light&Water's service baseline, which can be Customer
used to improve customer satisfaction by benchmarking, setting performance targets, training, Service
monitoring, and giving employee feedback in key customer contact areas. The survey was Survey
conducted by Satisfaction Development Systems (SDS) and it found that ninety-five percent of Results
Azusa Light&Water customers are satisfied with the service and that the most important attribute
in providing excellent customer service is treating all customers as if they are valued.
SI detailed the rest of the results of the survey and presented an action plan that would improve Results
se ce and communications to customers. She then presented a proposal to provide unique, Continued
toted customer service to Azusa Light & Water field employees, and recommended sole
sourcing training to MEASURE-X. Discussion was held between Staff and Councilmembers
regarding the proposal.
12/23/02 PAGE THREE
Moved by Chairperson Chagnon, seconded by Councilmember Rocha and unanimously carried to Agmt w/
waive formal bidding requirements for customer service training for field employees; and MEASURE X
authorize the City Manager to execute the agreement with MEASURE-X for a unique, customized Customer sys
'istomer service training not offered by other training companies. Training
rector of Utilities Hsu addressed item regarding the Amended and Restated Firm Transmission Dir of Util
`Service Agreements between Edison and Azusa. He stated that there is a need for restated. Amended
agreements to be adopted and that although the transmission rate revision is expected to Restated
increase the costs for Edison's services by a minimum of $250,000, per year, the City is joining Firm Trans
the CAISO as a Participating Transmission Owner as of January 1, 2003 and will received Service
reimbursements for the same transmission services. The cost increase from Edison will be offset Agmts
by the reimbursements from the CAISO, resulting in no net increase.
Moved by Councilmember Hardison, seconded by Chairperson Chagnon and unanimously carried Agrnts w/
to approve the six amended and restated firm transmission service agreements between Edison Edison
and Azusa, and authorize the Mayor to sign the agreements. Approved
Director of Utilities Hsu addressed item regarding proposed membership in Financing Authority . Dir of Util
for Resource Efficiency of California (FARECaI), and resolution declaring City's intention to be FARECaI
reimbursed for certain expenditures out of the proceeds from tax-exempt financing, stating that
he would like to finance Light and Water projects, such as: construction of a second electrical
substation, and construction of a new electrical operations office, instead of using reserves as
there are limited reserves at this time. He detailed the process for the issuance of tax exempt
bond financing. He stated that the first proposed resolution authorizes execution of application
for members in FARECaI and the second declares the City's intention to be reimbursed for certain
expenditures from the proceeds of proposed tax exempt financing.
)uncilmember Rocha offered a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL/UTILITY BOARD OF THE CITY OF AZUSA AUTHORIZING Res. 02-C 144
EXECUTION OF APPLICATION FOR MEMBERSHIP IN FINANCING AUTHORITY FOR RESOURCE Appl FARECaI
EFFICIENCY OF CALIFORNIA AND COMMITMENT TO ABIDE BY THE RPOVISIONS OF THE JOINT
POWERS AGREEMENT.
Moved by Councilmember Rocha, seconded by Councilmember Hardison to waive further reading
and adopt. Resolution passed and adopted by the following vote of the Council:
AYES: COUNCILMEMBERS: HARDISON,STANFORD, ROCHA, CHAGNON,MADRID
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Councilmember Rocha offered a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA DECLARING ITS INTENTION TO Res. 02-C 145
REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF A PROPOSED TAX-EXEMPT Tax Exempt
FINANCING, AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS Financing
SECTION 1.150-2.
Moved by Councilmember Rocha, seconded by Councilmember Hardison to waive further reading
Id adopt. Resolution passed and adopted by the following vote of the Council:
`AYES: COUNCILMEMBERS: HARDISON,STANFORD, ROCHA, CHAGNON,MADRID
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
12/23/02 PAGE FOUR
Lengthy discussion was held regarding the proposed contract to design, engineer, procure, and Dis re:
construct (EPC) the Azusa Light & Water 2"d Electric Substation to be located at 1 160 W. EPC
Gladstone Street. Director of Utilities Hsu and City Attorney Ferre detailed the complex nature of Electric
the project and the bidding process. Six responses were received on the RFP and a consultant Substation
was hired to help evaluate/analyze the bids and make a recommendation for contracting the
project.
Chairperson Chagnon requested that technical performance guidelines, such as timelines, Chagnon
reimbursements, etc., be included in the contract and she expressed the need to adhere to City Comments
guidelines for change order procedures and approvals required.
Electrical Engineer Langit responded stating that terms and conditions for addressing the F. Langit
requirements on the contracts will be part of the final agreement. He stated that other parties Comments
are a part of the project and also have requirements that have to be met, further commenting that
there will be good management cost control of all expenses, further, provisions for change orders
will have to be pre-approved by written authorization and be stipulated in the conditions of
approval.
Discussion
Discussion was held regarding past projects, and policies that have been created. Terms of
payment, were discussed as well as performance schedule. Director of Utilities Hsu stated that
payment will be made based on what is complete, and they will go by guidelines of the
purchasing policy. Further there will be a ten percent retention withheld until the project is
complete. Additional discussion was held regarding the creation of a sub-group of the Board to
possibly oversee the project before final approvals are made. Mr. Hsu responded stating that in-
house staff will be overseeing the project. Discussion regarding change orders process, timeline
and add-ons to the project. City Manager Cole spoke of alternate ways of addressing these
concerns, stating that due to the fact that the project is of great magnitude,the Board/staff maybe
vant to pay for construction management to supplement in-house staff. He noted other
oncerns regarding the creation of a sub-group of the Board. Councilmember Stanford suggested
ghat the subject be discussed at the next Utility Board meeting.
EPC Agmt
Moved by Chairperson Chagnon, seconded by Mayor Madrid and unanimously carried to award Black 8._
EPC Agreement to Black &Veatch Construction Inc., in the amount not to exceed $3,086,000 Veatch
(Three Million Eighty Six Thousand Dollars) for the design, engineering,procurement, construction Approved
and commissioning of Azusa Light and Water's 2nd electric substation at 1 160 West Gladstone
Street, and authorize the Mayor to execute EPC Agreement subject to final review and approval by
the City Attorney. (Said EPC agreement is comprised of: (a) Azusa Light &Water's standard
professional services agreement for engineering services; and (b) an agreement for the
procurement, construction and commissioning of the EPC Project.)
B. Tang
Assistant Director of Resource Management Tang addressed the Amendment to the Risk Policy Amend Risk
and Authority Conveyance for Power Transactions stating that in July, 2002, Council approved an Policy
interim authorization level of Assistant Director of Resource Management; and (2)Administrative
Assistant in the Power Resource Division to conduct transactions at the authorization level of
Power Resource Scheduler. Due to the continued need to define specific authorities for the
power resource personnel engaged in procurement functions, staff recommends that following
permanent changes to the Risk Management Policy:
Amend Risk
1. Change the procurement authority of Power Resource Coordinator to the same level as Policy Auth
ssistant Director of Resource Management, i.e., procurement authority up to three months. 2. Continued
evise the procurement authority for Power Resource Scheduler to transactions up to one month.
Risk Policy
Moved by Councilmember Hardison, seconded by Chairperson Chagnon and unanimously carried Amendment
to approve the proposed amendment outlined above to the Risk Policy and convey proposed approved
authority to Power Resource (Division) personnel to conduct short-term power transactions.
12/23/02 PAGE FIVE
Staff Reports/Communications Staff Rpts
Director of Utilities Hsu advised that the workplan update will be presented in January, 2003, Dir of Util
followed by updates in April, July and September. Comments
Assistant Director of Resource Management Tang presented the Power Resources Division B. Tang
Monthly Report as an information item and provided an update on the Options Agreement with Update
regard to the San Juan with the County of Los Alamos. The discussions with Los Alamos County Options
are on hold pending review of SCAPPA bond counsel on tax issues. Agreement
Directors' Comments Dir Com
City Manager Cole advised of the stability of the Azusa Light and Water Department as a public Dir of Util
entity. He praised the management, leadership and noted that reserves in the water fund have &City Mgr
been great. Director of Utilities Hsu concurred with City Manager's comments and thanked the Comments
Utility Board members for their leadership.
Discussion was held regarding upcoming SCAPPA conferences and events for the year 2003,and Change of
it was noted that CMUA Legislative Briefing on the same date as the next Utility Board meeting. It Next Utility
was consensus of the Board members to change the next Utility Board meeting to Tuesday, Brd Meeting
January 28, 2003, in order that Director of Utilities Hsu be present.
City Manager Cole announced that Monrovia Nursery should be a topic of discussion at the City Mgr
Special meeting to be held jointly with the Azusa Unified School District on January 13th or 14`h. Comments
tentatively scheduled, depending on the AUSD availability.
It was consensus of Councilmembers to recess to Closed Session to discuss the following: Closed Sess
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATE LITIGATION (Gov. Code Section Anticipated
54956.9(c )). One Case. Litigation
REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8). Real Prop
Property: 1020 W. 10"' Street, Azusa, CA 91702. Negotiations
Negotiators: Joe Hsu, Director of Utilities, Henry Domolina, Kress Pandzic
Under Negotiations: Price and terms of payment
The City Council recessed at 8:00 p.m. The City Council reconvened at 8:39 p.m. Recess
Reconvened
City Attorney Martinez advised that there was no reportable action taken in Closed Session. No Rpts
It was consensus of Councilmembers to adjourn. Adjourn
TIME OF ADJOURNMENT: 8:40 P.M.
SECRETARY
.+TEXT RESOLUTION NO. 03-Cl.