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