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HomeMy WebLinkAboutMinutes - January 28, 2002 UB �.�Al. tid.W AZUSA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JANUARY 28, 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. Chairperson Chagnon called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: COUNCILMEMBERS: STANFORD, HARDISON, CHAGNON, ROCHA, MADRID ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, Director of Utilities Hsu, City Manager Cole, Assistant Director of Resource Management Tang, Director of Public Works Nakasone,Assistant Director of Electric Operations Ramirez,Assistant Director of Water Operations Anderson,Assistant Director of Customer Care Solutions Vanca, Assistant to the Director of Utilities Kalscheuer, Electrical Engineer Langit, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part Director of Utilities Hsu introduced Mr. Bill Nakasone, the new Director of Public Works Dir of Util Department to Board Members and staff. Intro PW Dir Director of Utilities then presented an item of subsequent need regarding the selection of a Dir of Util contractor to provided new media to water treatment plant. It was then moved by Item of sub Councilmember Stanford, seconded by Councilmember Rocha and unanimously carried to add need - added the item to the Consent Calendar of the Agenda as item II-J. Consent Cal New media wtr treatment plant The CONSENT CALENDAR consisting of Item II-A through II-J, were approved by motion of Consent Cal. Councilmember Stanford, seconded by Councilmember Rocha, and unanimously carried, with Appvd, D&G the exception of item II-I, which was considered under the Special Call portion of the Agenda. Spec Call A. The minutes of the regular meeting of November 26, 2001, were approved as written. Min Appvd B. Approval was given to authorize the purchase of 34 electric reactive meters with load Purchase of profiling capability, build-in modems, KYZ outputs, alternative energy register and time-of- reactive mtrs use capabilities from McAvoy &Markham Engineering&Sales Company in the amount of McAvoy & $20,242.75. Markham C. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Res. 02-C13 ACCEPTING CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF. Grant of (Shaida Mansoub). Easement D. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Res. 02-C14 ACCEPTING CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF. Grant of (Alexander Communities Inc.). Easement E. A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Res. 02-C15 CALIFORNIA,ADOPTING A BUDGET AMENDMENT TO ALLOCATE PUBLIC BENEFIT FUNDS Budget FOR. THE BENEFIT OF AZUSA LIGHT &WATER CUSTOMERS. Amend PBF F. Approval was given to staff to authorize a Budget Amendment in the amount of Bdgt Amend $831,000.00 to cover the Light and Water Division's annual Utility costs for Fiscal Year Annual Utility 2001-2002. Cost G. Approval was given to award a contract to Spiniello Companies for relining of water mains Spiniello Wtr on Azusa Lane and Paramount Street in the amount of $27,667.00. Mains reline H. Approval was given to award a contract to Simich Construction for Project W-170, Main Simich Main Replacement on Various Streets, in the amount of $2,011,014.50. Replacement 1. SPECIAL CALL ITEM. Spec Call J. Approval was given for the selection of a contractor to provide new media to water ERS Indust. treatment plant. ERS Industrial Services, Inc.was accepted as the contractor to remove the media wtr spent media and place new media in Filter #2. treatmt pint Special Call Items Spec Call Councilmember Hardison addressed item regarding a proposed contract for professional Discussion architectural services for the new Azusa Substation. He asked what specific services would be Architectural received from the contractors for the new Azusa Substation. Utilities Director Hsu and City Services for Manager Cole responded detailing the concept of what is expected. Discussion was held New Azusa between Councilmembers and staff regarding the proposed design, budget, costs, timeline, Substation quality, etc. It was noted that the Planning Commission had approved the proposed electric substation project in November and as part of the Conditions of Approval,Azusa Light&Water was required within 90 days, to present before the Planning Commission, a conceptual plan for the architectural landscape design and wall treatment along frontage of substation site. 01/28/02 PAGE TWO Of the three proposals received for the services, it was consensus of Councilmembers that staff Architectural invite the firm of Gonzalez and Goodale and negotiate a revised scope of services, then invite Services architect to the next Utility Board Meeting to explore some design concepts for the New Azusa item - tabled Substation as well as receive input from the Councilmembers. It was consensus of to February Councilmembers that the item be tabled until the next Utility Board meeting and that staff 25, 2002 request from the Planning Commission a continuance/extension of time to present a conceptual plan for the architectural landscape design and wall treatment along frontage of substation site. Scheduled Items Sched Items Assistant Director of Customer Care and Solutions Vanca addressed Councilmembers presenting Non- the Non-Residential New Construction Program. Since new businesses are installing new Residential equipment, not retrofits, these businesses do not quality for the existing Business Energy New Partnership Program. This program will encourage owners of new business buildings in Azusa Construction to install energy efficient lighting and heating, ventilating, and air conditioning (HVAC) to a Program maximum rebate of $20,000. She stated that it would be funded by taking $60,000 of the existing public Benefit Program. Moved by Councilmember Stanford, seconded by Councilmember Hardison and unanimously Program carried to approve the newly designed Non-Residential New Construction Program,and approve Approved a budget of $60,000 for the remainder of this fiscal year with funding from the Public Benefits Business Energy Partnership. Councilmembers asked that they be advised of the businesses that take advantage of this program. Utilities Director Hsu presented an information item regarding Transfer of Water Rights. He Utilities Dir stated that the Azusa water utility is composed of Azusa municipal water system (Azusa), 83% Hsu of Azusa Agricultural Water Company (AAWC), and Azusa Valley Water Company (AVWC). Transfer of Through adjudication of water rights in the San Gabriel Basin by the California Superior Court of Water Rights Los Angeles in 1973, each of the entities was adjudicated the following water rights: City: Discussion 3655.99 Acre-feet; AAWC (City's share): 2267.73 Acre-feet; and AVWC: 10696 Acre-feet. Only Beginning in 1999, after physical integration of water systems of the City's and AVWC's, a transfer of AAWC"s water rights to AVWC was executed, resulting carryover water rights under AVWA account, which enabled the City to market the surplus water rights form time to time to generate revenues not tied to retail operations. Recently, strong concerns were expressed by the Upper San Gabriel Municipal Water District that it had to provide substantial amount of replacement water for the City, and alleged the City might be supplying its water outside the District boundaries. Another concern was expressed by the Man San Gabriel Basin Watermaster that our transaction has caused funding shortage in its replacement water account. Discussion was held regarding the issue. It was consensus of Councilmembers to leave the situation as it is; make no changes. Assistant to the Director of Utilities Kalscheuer provided a report on a proposed C. Kalscheuer Telecommunications Feasibility Study, stating that from September 2000 through April 2001, Telecom Councilmembers and Azusa Light&Water staff participated in a strategic planning process which Feasibility resulted in a recommendation to form a Utility Board, and to begin development and Study implementation of new services. Some services identified included telecommunication or telecom services. In order to determine the market potential, risk, and return on investment, there is a need to conduct a feasibility study of the services under consideration, i.e. telephone, high-speed internet services,cable television,security,and computer networking for businesses. He presented the basic scope of work for the study and requested that staff be authorized to develop and release an RFP for a telecom feasibility study, review responses, and present to the Board for consideration by May 2002, meeting. 01/28/02 PAGE THREE Moved by Councilmember Stanford,seconded by Chairperson Chagnon and unanimously carried RFP for to authorize staff to develop and release a Request for Proposals for a Telecommunications Telecom Feasibility Study that will examine the benefits of activating a Government/Institutional Fiber Feasibility Network, and also explore the business potential of wholesale and retail telecommunication Study services. approved Staff Report/Communications Staff Rpts • In the Power Resources Division Monthly Report, portions consisting of Power Consumption Power Res Comparison,Wholesale Market Trend and Power Resource Budget Update was presented, but, Report not discussed. Assistant Director of Resource Management Tang presented the Current Events portion of the B. Tang Power Resources Division Monthly Report and the following points made were: Market Comments fundamentals have changed dramatically compared to last year. Abundant Hydro (hydro Current generation is expected to be at or above normal). Natural gas storage is at all time high, prices Events are at historical low. No major delivery disruptions due to Enron's demise. Market may face power glut in the next 24 months mos of the time. Merchant power companies are facing increasing scrutiny from the financial community due to Enron's financial accounting scandal. This has caused delays and cancellation of power plant development. Mr. Tang also stated that there is going to be a deficit of about 10-1 1 million dollars in Light Fund in the current fiscal year due to summer problems with San Juan. We are negotiating with Enron to buy them out. If such effort is successful it will add $2.5 million to this year's deficit. There was one question regarding the Billing Report for December, 2001. Council asked if they Billing Rpt were selling less retail in Light and Water and the answer was no. Utilities Director announced the California Municipal Utilities Association 70`h Annual Conference Announce to be held on March 5-8, 2002. He invited Councilmembers to attend and asked them to CMUA advise him if they would like to attend at a later date. He stated that Karen Vanca, and Cary Conference Kalscheuer attended last year. Councilmembers asked that it be offered to other staff members, other than department heads. Councilmember Stanford offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, CASTING ITS Res. 02-C16 VOTE(S) FOR COUNCILMEMBER ROGER CHANDLER TO REPRESENT CITIES WITH PUMPING Appoint R. RIGHTS ON THE BOARD OF THE SAN GABRIEL BASIN WATER QUALITY AUTHORITY. Chandler Wtr Quality Moved by Councilmember Stanford, seconded by Councilmember Hardison to waive further Board reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON, ROCHA, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Utilities Director Hsu asked for input about the date for dedication of the Wells at the Spreading Well Grounds. It was decided a day in March between 4 p.m. and 5p.m. dedication 01/28/02 PAGE FOUR It was consensus of Councilmembers to recess to Closed Session to discuss the following: Closed Session CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Gov. Code Sec. 54956.9 (b). Exposure to Litigation - Load Reduction Agreement with S8.S Foods, LLC. Time of Recess: 8:08 P.M. Recess Reconvened: 8:32 P.M. Reconvened General Counsel Ferre advised that there was no reportable action taken in Closed Session. No Reports It was consensus of Councilmembers to adjourn. Adjourn TIME OF ADJOURNMENT: 8:33 P.M. ( SECRETARY NEXT RESOLUTION NO. 02-C17. 01/28/02 PAGE FIVE