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HomeMy WebLinkAboutMinutes - March 25, 2002 UB Sema Air AZUSA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, MARCH 25, 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, Secretary Alvarez, Assistant to the Director of Utilities Kalscheuer, Assistant Director of Resource Management Tang, Assistant Director of Water Operations Anderson, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part None. None The CONSENT CALENDAR consisting of Items II-A through Il-M, were approved by motion of Consent Cal. Councilmember Stanford, seconded by Councilmember Hardison, and unanimously carried,with Appvd the exception of items E, F, G, and I, which were considered under the Special Call portion of the Agenda. A. The minutes of the regular meeting of February 25, 2002, were approved as written. Min Appvd B. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Res. 02-C35 CALIFORNIA, ACCEPTING GRANT OF EASEMENT AND DIRECTING THE RECORDING Accepting a THEREOF. grant of esmt C. Approval was given to replace dump truck for water distribution with a 2002 Freightliner Pur water dist dump truck from Sacramento Truck Center in the amount of $53,336. truck D. Approval was given to replace standby truck for water distribution with a 2002 Ford F350 Pur standby from Folsom Lake Ford in the amount of $21,000. truck E. SPECIAL CALL ITEM. Spec Call F. SPECIAL CALL ITEM. Spec Call G. SPECIAL CALL ITEM. Spec Call H. Approval was given to pay invoices for emergency cleanup services tendered, at the Emergency Edgewood Center Convalescent Home, in the amount of $37,553.50. Clean up sys I. SPECIAL CALL ITEM. J. Approval was given to accept Wren&Associates as the inspection consultant to provide the Wren&Assoc required project construction inspection services for project W I 70. inspect sys K. Notice of Completion for the Spreading Ground Wells was approved in the amount of Not of Comp $3,676,309.59. Spread Grnds L. Approval was given for funding request in the amount of $26,138 and authorization was Funding given to submit to the Department of Conservation for continuation of the school recycling Request program. recycling pgm M. Approval was given to the Director of Utilities to initiate discussion with the Personnel Board Temp Project regarding creation of a new temporary position called Project Inspector. Inspector Special Call Items Special Call Items Mayor Madrid questioned item regarding selection of an engineering consultant to perform Madrid engineering design services for capital improvement project, installation of pipeline. She comments questioned why project was not awarded to Civiltec since they were the lowest cost at $25,894 instead of Hall &Foreman who proposed a cost of $26,906. Assistant Director of Water Operations Anderson responded stating that contract was for Dir Wtr Op professional services and that City was not bound to go with the lowest bidder; secondly, since response Civiltec currently has two big projects in Azusa, and Hall &Foreman provided the next lowest quote, that this was an opportunity to share the workload and see how Hall &Foreman does. Councilmember Rocha also asked about replacing water lines in streets that have just been paved. Rocha comments Utilities Director responded stating that the construction on Baseline will be deferred, and Dir of Util Dalton and Eleventh projects will be limited to the intersection. He stated that next time there response will be more coordination between the Water Department and Engineering Department. Moved by Councilmember Stanford, seconded by Mayor Madrid and unanimously carried to Hall & accept Hall & Foreman as the engineer to provide the required engineering design services for Foreman installation of pipeline - 2,000 linear feet of 16 inch pipeline in Baseline Avenue from Rockvale Engr Design Avenue easterly to Citrus. Svs Chairperson Chagnon addressed items regarding replacement of Welding Truck Chassis and the Chagnon Service Truck and asked if there was any criteria for replacing vehicle; since both vehicles have comments average mileage, she wanted to know what other reasons there were for their replacement. 03/25/02 PAGE TWO Assistant Director of Water Operations Anderson responded stating that the vehicles are worn Asst Dir Wtr and old in years. Moved by Councilmember Stanford, seconded by Mayor Madrid and unanimously carried to Pur truck approve the proposal from Folsom Lake Ford for a 2002 Ford F350 truck cab and chassis in the Folsom Lake amount of $21,019 to replace service truck chassis for the Water Division. Ford Moved by Councilmember Stanford, seconded by Mayor Madrid and unanimously carried to Pur truck approve proposal from Folsom Lake Ford for a 2002 Ford F-350 truck with Knapheide Service Folsom Lake Body in the amount of $21,096 to replace service truck for the Water Division. Ford Councilmember Rocha addressed item regarding the replacement vehicle for Assistant Director of Rocha & Water Operation with concerns with the same issue, age of vehicle and low mileage. Chairperson Chagnon Chagnon inquired whether this is a take home vehicle and if the old City Administration vehicle comments could be used for the Utility Department. Utilities Director Hsu responded stating that the vehicle is approved for take home policy, but has Util Dir & not been well maintained. City Manager Cole responded to the second question stating that it is City Mgr currently being used by the Help Desk, in the Computer Services Department. response Moved by Councilmember Stanford, seconded by Mayor Madrid and unanimously carried to Pur vehicle approve the proposal from Folsom Lake Ford for a 2002 Taurus in the amount of $17,300 to Folsom Lake replace Assistant Director of Water Operation's City vehicle. Ford Scheduled Items Sched Items Utilities Director Hsu addressed item regarding Amendment to Existing Street Light Rate Schedule Util Dir Applicable to Outdoor Area Lighting and Related Services, stating that the main reason for this re: Amend St item is to improve lighting service for bus benches; some require regular lighting and some require Light Rate solar lighting. He stated that the bus shelter contractor will pay for the electricity. They are Sched changing the existing rates to be consistent with comparable Edison rate schedule. He then outdoor area answered questions posed by Councilmembers/Boardmembers. Councilmember Stanford offered a Resolution entitled: A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Res. 02-C36 CALIFORNIA, AMENDING THE SCHEDULE OF CHARGES AND RULES AND REGULATIONS Amend Sched GOVERNING OUTDOOR AREA LIGHTING SERVICE WHERE CUSTOMER OWNS AND MAINTAINS &Rules & LIGHTING EQUIPMENT. Regs Outdoor Area Moved by Councilmember Stanford, seconded by Mayor Madrid to waive further reading and Lighting adopt. Resolution passed and adopted by the following vote of the Council/Board: AYES: COUNCILMEMBERS: HARDISON,STANFORD, ROCHA, CHAGNON,MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: Utilities Director Hsu addressed item regarding Request to Change Site for Yard Office Building. Util Dir He stated that after a Yard Safety Committee meeting, it was suggested to use the Transportation comments site for a building to house the Electric Division. He stated that there are no Planning restrictions re: Electric and that although neighbors at 600 Sierra Madre are concerned about parking on the street, there Building @ will be a Public Hearing before the Planning Commission on the issue. He requested consensus Trans site from Council so that he may begin a preliminary study and he displayed renderings of the building on the proposed site. Lengthy discussion was held regarding the situation. 03/25/02 PAGE THREE It was then moved by Councilmember Stanford, seconded by Chairperson Chagnon and Study for unanimously carried to authorize staff to begin preliminary study including procuring certain Yard Office consulting services to prepare plans for Planning Commission for placing the proposed Yard Office @ 10`h 8. Building at 10`h and Vernon Street. Vernon Utilities Director Hsu presented a financial impact analysis based on three scenarios for the Util Dir — Transfer of Azusa Agricultural Water Company Water Right. He detailed each scenario; Scenario comments I is the current base case, Scenario II, which he recommends is to transfer Azusa Ag water Right Transfer of back to Azusa as requested by Watermaster and SGVMWD, and all Replacement Water rates stay Water Right as they are and Scenario III, Not Transfer Azusa Ag water Right back to Azusa , and Watermaster adopts a melted rate at $210/AF (estimated). Lengthy discussion was held regarding this issue. It was then moved by Councilmember Stanford, seconded by Councilmember Rocha and Transfer of unanimously carried to authorize Utilities Director Hsu to negotiate settlement of the issue to a Water Right satisfactory resolution. Utilities Director Hsu will then come back with an update on the situation Azusa Ag at the April meeting. In response to questions at the last meeting regarding funding of Green Barrel Distribution C. Kalscheuer Program, Assistant to the Director of Utilities Kalscheuer stated that AB939 fund balance is Green Waste $126,000, with an annual positive cash flow of about $130,00 per year and in looking at the collection possible purchase and distribution of 16,000 green barrels, approximately two per household, the program cost, based on one vendors estimate, would be approximately $246,000. He stated that if there was a wish to implement the program within the next six months, there aren't enough funds, but, that the balance could be borrowed, and paid back out of the positive cash flow. He presented and detailed a Green Barrel Distribution Program Cost/Payback plan. Councilmembers asked about Athen's Disposal and its part in the Green Barrel Distribution Discussion Program. Discussion was held regarding Athens role in providing manual green waste collection Staff directed service, complaints against their services and other issues. City Manager Cole suggested that to begin the residents be given one barrel and if there is a need for a second, they can ask for it. process for Councilmembers agreed to that suggestion and it was noted that additional barrels could be purchasing ordered in case there was a need for more. It was noted that there is a need for more public 32-gal green awareness about the program. Moved by Councilmember Rocha, seconded by Councilmember plastic barrels Hardison and unanimously carried that staff begin the process of purchasing 32 gallon green plastic barrels for households participating in Azusa's Green Waste Collection Program. Staff Report/Communications Staff Rpts Utilities Director Hsu commented on the format of the Utility Board meeting advising Council that Util Dir he feels the purpose is educational, to focus on future planning, and to focus on certain items comments to be presented, either short or detailed depending on what is necessary. Utilities Director Hsu presented Monthly Billing Report for February 2002, which consists of Monthly statistics, but nothing extraordinary, he noted. Chairperson Chagnon asked that the Monthly Billing Rpt Billing Report be provided quarterly. Discussion was held regarding month City Facilities Energy Consumption Report for the Month of Energy January, 2002. Consumption Utilities Director Hsu announced the following: SCPPA Congressional Delegate Tour of SCPPA Util Dir Facilities (Hoover Dam), May 31-June 31, 3002,Well Dedication March 28, 2002,Thursday,4:30 Announcemts p.m. at Spreading Grounds and APPA Annual Conference, Dallas, TX, June 10-12, 2002.- 03/25/02 PAGE FOUR Utilities Director Hsu advised that there is proposal from City of Vernon requesting the City of Proposed Bill Azusa to provide Billing Service. He stated that staff will be negotiating with them within the next Svs City of month and if it is successful he will come back to the Board with a contract. Vernon Assistant Director of Resource Management Tang presented an update on the Electric Industry B. Tang with background information about the state of the industry and issues facing the city in the near Update Elect — future i.e. transmission issues, retail rates and resource portfolio procurement. Industry Subjects covered in his presentation consisted of the following: Federal Level: The FERC still holds an unabated enthusiasm towards competitive electricity market Federal Level even against the backdrop of California energy crisis and the confidence crisis of the public towards deregulation. Activities at FERC level: a. Creation of regional transmission organization (RTOs) throughout the country. B. Standardized market rules and pricing schemes, and c. Compel participation of all market entities including municipal utilities. Transition in one to three years. State Level: Still dominated by highly politicized and litigious regulatory decision making process. State Level Activities at state level: a. Numerous litigations regarding the fallout of energy crisis. b. PG&E bankruptcy has an impact on the regulatory structure in the future. c. No clear strategic thinking as how to plan for the future. Who will build the necessary infrastructures to serve customers? Wholesale Power Markets: Wholesale power merchants are under intense scrutiny by the Wholesale financial and investment institutions in the wake of Enron's collapse. Activities at Wholesale Pwr Mkt Power Markets: 1. Wholesale power merchants are under financial distress. 2. Severe capital constraints to fund new infrastructure. Transmission Issues: Issue: As the price freeze of Azusa-Edison transmission service contracts Transmission come to an end at the end of 2002, the city will face substantial transmission cost increase. Issues bnm Mitigating Strategy: Becoming Participating Transmission Owner (PTO) in the CAISO market. Timeline: 1. Detailed discussion of issue with the Board in April and May. 2. Prepare and finalize the application by June 30, 2002. 3. Execute applicable agreements with the CAISO by the end of the year. Retail Rates: Issue: As the retail sales growth rate has been consistently lower than the growth Retail Rates rate in operating costs, the retail rate setting must be adjusted to reflect the cost structure. Mitigating Strategy: Revise retail rate structure. Timeline: 1. Detailed retail rate studies presented to the board for consideration in August. 2. Conduct public hearing and customer meetings in September. 3. Implementation as of January 2003. Resource Portfolio Procurement: Issue: As various power supply contracts will terminate in the Resource next 18 months, the city will need to procure new resources to serve its retail load and evaluate Portfolio its long term resource portfolio mix. Mitigating Strategy: Restructure power resource portfolio. Procurement Timeline: 1. Finalize San Juan Unit#3 diversification strategy by Summer 2002. 2. Complete five-year planning activities by Summer 2002. 3. Conduct workshops with the Board in July and August. Mayor Madrid asked if Councilmember would like to set a time to review the contents of the Madrid Carver Book, entitled, Boards That Make a Difference. It was consensus that a tentative date comments would be set for June 24th at their regular Board Meeting. Carver Book It was also consensus of Councilmembers that the meeting of May 27th, be moved to Tuesday, Move May May 28th, due to the fact that Monday is Memorial Day. mtg to 5/28 03/25/02 PAGE FIVE Councilmember Hardison asked about criteria for repairing water mains and paving of streets Hardison afterwards. He talked about revisiting sites and doing a slurry cap over it. Utilities Director Hsu comments responded stating that they have been lacking a project inspector for these types of projects, so Utilities Dir on the agenda, there is an item that creates a new temporary position to be called Project response Inspector to meet the need. Councilmember Stanford apprized his colleagues that he will be going into the hospital for open Stanford heart surgery. He stated that he will miss the meetings of April 1 and 15, 2002. comments Chairperson Chagnon inquired when they will be receiving an update on the telecommunications Chagnon item that Cary Kalscheuer is working on. Mr. Kalscheuer responded stating he will be receiving comments proposals for the telecommunications in April, and may present proposals at the May meeting. It was consensus of Councilmembers to adjourn. Adjourn TIME OF ADJOURNMENT: 8:15 P.M. OOP' /' / Alb SECRETARY 11, NEXT RESOLUTION NO. 02-C37. 03/25/02 PAGE SIX