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HomeMy WebLinkAboutMinutes - June 24, 2002 UB AZUSA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JUNE 24, 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: HARDISON, STANFORD, CHAGNON, MADRID ABSENT: COUNCILMEMBERS: ROCHA ALSO PRESENT: Also Present City Attorney Ferre, Director of Utilities Hsu, City Manager Cole, Assistant to the Director of Utilities Kalscheuer, Power Resource Coordinator Richard Torres, Power Scheduler Tim Vuong, Deputy City Clerk Toscano, City Clerk Mendoza. Public Participation None Pub Part None The CONSENT CALENDAR consisting of Items Il-A through I1-D, were approved by motion of Consent Cal. Councilmember Stanford, seconded by Chairperson Chagnon, and unanimously* carried. Appvd Councilmember Stanford abstained from the minutes due to his absence from that meeting. A. The minutes of the regular meeting of May 28, 2002, were approved as written. Min Appvd B. Approval was given to Amend the Public Benefits Program Budget FY 2001-02 in the amount Amend Public of $12,740 with added funding from SB 5X. Benefit Prgm C. Approval was given to Amend the Load Profile Budget FY 2001-02, Time of Use (TOU) Amend Load Customer Load Profile Project in the amount of $12,230 with added funding from AB29X. Profile Bdgt D. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING Res. 02-C70 CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF. Grant of Esmt Scheduled Items Sched Items Discussion was held regarding election for WQA Board Member representing cities with Dis WQA prescriptive pumping rights. Recently a vacancy was created as a result of a Councilman losing Nomination re-election, subsequently, a nomination was conducted and list of nominees was established as follows: Mark A. Breceda, City of Irwindale, Greg Nordbak, City of Whittier, Daniel R. Arguello, City of Alhambra and Jack Thurston, El Monte. Councilmember Stanford offered a Resolution entitled: A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Res. 02-C71 CALIFORNIA, CASTING ITS VOTE(S) FOR COUNCIL MEMBER TO REPRESENT CITIES WITH Casting vote PUMPING RIGHTS ON THE BOARD OF THE SAN GABRIEL BASIN WATER QUALITY AUTHORITY WQA Greg (GREG NORDBAK, CITY OF WHITTIER). Nordbak City of Whittier Moved by Councilmember Stanford, 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, CHAGNON, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: ROCHA Utilities Director Hsu presented FY 2002-03 and FY 2003-04 Budgets for Electric, Water, Solid Utilities Dir Waste and Customer Care &Solutions. He stated that these are all supported by revenues Budget collected by customers, there will be an electric rate increase due to low growth which doesn't Presentation cover operating cost. He stated that he will come back in September and ask for 5%increase and will be working on a 5 year projection. He answered questions regarding Street Light Conversion, where new street lighting will be installed on Azusa Avenue to complement the existing ones in downtown district and stated that they will be fewer and far between. Discussion was held regarding the list of Utility employee position titles and it was noted that the list needs to be revised as many positions have been deleted or added. It was then moved by Councilmember Stanford, seconded by Councilmember Hardison and unanimously* carried to approve the budget. Utilities Director Hsu then responded to questions regarding Resources and why there was spiking Utilities Dir in the numbers for the years 1999, 2000, and 2002. He stated that there is a need to schedule add'I enough resources for summer months that can only be projected. Further during those years, comments there was a cause that more than doubled the electric market. He talked about the guidelines in the risk management policy, specifically that you can only buy for needs and sometimes it's seasonal and depends on the weather. Discussion was held. Assistant to the Director of Utilities Kalscheuer presented the sole bid for Yard Waste Barrels from C. Kalscheuer Toter Incorporated in the amount of $173,248.00 for the purchase of sixty-four hundred 32- Yard Waste gallon yard waste barrels. He presented a barrel that will be used and displayed a sign that will Barrels bid be on the barrel as follows: "Yard Waste Only", etc. He stated that Mr. Tommy Ozoonian, Marketing Director for Athens's Services, received a complaint from a mobile home park stating that Athens's was picking up green waste with trash. He asked if they could tag trash mixed with green waste and not pick them up. Councilmember disagreed with that solution. Discussion was held. 06/24/02 PAGE TWO Councilmembers discussed plans to educate the public regarding green waste recycling and it Add'I was noted that the sign on the trash can should have graphics displaying what should or shouldn't Discussion be placed in the barrel. Mr. Kalscheuer advised that a survey was conducted to see which apartments and mobile parks did or did not want to have green barrels since some have landscape contractors who haul away their green waste and many of them did not; 1400 homes where eliminated that way. He explained the situation with the Mr. Driever and the Arrow Pines Estates who now would like to have barrels at their mobile home park. He then answered questions posed by Councilmembers. Councilmembers reiterated that they wanted a clear message on the barrels of what could and could not be placed in them. They didn't want the language as presented, but, a graphic that is clearly understood. Mr. Kalscheuer then responded to question regarding the AB939 Fees. It was noted that the final graphic would be circulated to Council for review. Moved by Mayor Pro-Tem Hardison, seconded by Councilmember Chagnon and unanimously* Bid award to carried to award the bid to Toter Incorporated in the amount of$173,248.00 for the purchase of Toter Inc. sixty-four hundred 32-gallon yard waste barrels, and amend the FY 2002-03 Solid Waste Management Budget by said amount to pay for the program. Utilities Director Hsu requested that a credit card be issued to the Light and Water Department in Utilities Dir order to make reservations for conferences, meetings, airlines, etc. He stated that in the past the Request City Manager credit card has been used, but, reconciliation has become a chore. Credit card Moved by Councilmember Stanford, seconded by Mayor Madrid and unanimously* carried to Approved authorize a credit card for Azusa Light &Water. Staff Reports/Communications Staff/Com Power Resource Coordinator Richard Torres presented the Power Resources Division Monthly Pwr Res Report stating that the energy consumption comparison is stable,the peak demand has remained Rpt ' 'the same as last year. Utilities Director Hsu responded to a question regarding conservation programs stating that a Utilities Dir committee has been re-activated which will include a person from each department. Conservation Mr. Torres continued with the report stating that energy prices have spiked a little daily and for Pwr Res the remainder of this week natural gas prices have spiked due to hot weather and noted that Coord. hybrid conditions in the northwest are better and natural gas is fairly stable. He then talked about Power Resource Cost Accounting stating that long term contracts and short term purchases are stable, and there's a little spike in transmission cost since transmission access to the California- Oregon began. He talked about the contracts and process if power cannot be delivered due to fires, and stated that the delivery is re-scheduled and/or not billed for non-delivery. Assistant to the Director of Utilities Kalscheuer provided an update on the Telecommunications C. Kalscheuer Feasibility Study stating that last week four firms were interviewed, by the Interview Panel of Telecom. Robert Person, Joe Hsu, Kevin Morningstar, Federico Langit, Karen Vanca, and himself. Of the Feasibility four firms interviewed R.W. Beck was selected as a firm to negotiate with; ten proposals were Study received on the project at an average cost of$161,000 and R.W. Beck came in at$188,000, and since negotiations have begun, it seems like they may be able to bring down amount to$160,000 - $170,000. He stated that he would like to bring this proposal to the Utility Board at it's next meeting in July for consideration. He stated that he is setting up a meeting with the School District as it is a public institution and to see if they would be interested in this and share costs. He then answered questions posed by Councilmembers regarding experience of Interview Panel, scope of work, and contract duration. 06/24/02 PAGE THREE Power Resource Coordinator Richard Torres advised that the City will need to replace two power R. Torres contracts which will terminate in the next 15 months. The Bonneville Power Administration: 12 Pwr Res MW of peaking capacity and energy (June-September) terminates on September 30, 2003 and Coord. the Pasadena Contract: 8MW of peaking capacity and energy terminates on December 31, 2002. Energy He stated that by the end of 2003 they will need about 20 MW of peaking power, especially for Purchase the summer time. He noted the City's Prospective Power needs for the next five years. He then noted considerations of the purchase of power at this time stating that now is the Buyer's market, it's too expensive and too much operational hassle to consider building a power plant, that five years is long enough to provide cost stability, but not long enough to foreclose city's ability for mid-course corrections in planning for future resources and lastly he listed parties who have signed the EEI or EEI equivalent agreements with the City as follows: Duke,American Electric Power, IdaCorp, Sempra and UBS agreements are in the works, and other government agencies. He then stated that the current purchasing authority staff has is up to one-year and multi-year purchases need City Council approval. Due to the price volatility, it made the execution of multi- year transactions almost impossible to achieve. Suppliers are unwilling to keep the price quotes for more than a few hours. He then noted a proposed process for multi-year procurement and recommended the following: (1) The procurement of the following specific power product: 5- year summer only (June-September)on-peak power product either @ PV or SP 15. On-peak hours are as defined by FERC ("ceiling price"). (2) The establishment of not-to-exceed price of $50/MWh for all years for the product. (3) Authorize the Director of Utilities through Assistant Director of Resource Management to execute the purchase if market price for "Product" is no more than the "ceiling price". Such authority shall automatically expire if not exercised by December 31, 2002. (4) The Product shall be purchased only from third parties who have signed EEI or EEI equivalent credit support agreement with the City. (5) The Mayor shall execute the confirmation purchase agreement upon its preparation. It was then moved by Councilmember Stanford, seconded by Chairperson Chagnon and unanimously* carried to approved the above recommendations. Directors' Comments Dir Com Chairperson Chagnon requested that a policy be created to govern how the flow of the interest Chagnon from the Light and Water Department. Further that in an effort to get into entrepreneurial things, Interest there is a need to have a revenue stream to pay for things. City Manger Cole stated he could Income bring back the pro's and con's of such a policy and talked about his concern with how this may L&W relate to the Enterprise Fund and to prop 218. Discussion was held. All agreed that there is a need to have consistency with distributing Light and Water interest income and a policy is needed. It was consensus of Councilmembers that staff come back with suggestions/options and criteria/recommendations for a policy. Assistant Director of Utilities Kalscheuer provided an update on the Annual Refuse Rate C. Kalscheuer Adjustment Process stating that Athens is working with the County Sanitation District to change comments numbers and the correction will be on the side of County Sanitation District. Mr. Kalscheuer will check with the County Sanitation District and stated that the real question is what tonnage is going into the MRF. Discussion was held regarding the review of the book of: Boards That Make A Difference by John Discussion Carver. Utility Director advised that the book provides guidelines of how valuable you are as a Re: Book board, and how you have power to make a difference. He stated that there is going to be a Review workshop, on the subject, in Palm Springs from October 31'to November 2"d. It was consensus of Councilmembers to focus on Chapter one for the next meeting. City Manager Cole expressed concern regarding the Council's split view about consolidating Discussion Council and Utility Board meetings; the many issues that need to be scheduled before Council and the valuable time that is spent at workshops to discuss many of the items. 06/24/02 PAGE FOUR Discussion was held. It was consensus of Councilmembers that the meeting of July 15`h be Discussion adjourned to Monday, July 22nd at 7:30 p.m., directly following the Utility Board meeting, 6:30 Mtg date p.m. - 7:30 p.m ., in order discuss the Fire Contract and other items. Changes It was consensus of Councilmembers to recess to Closed to discuss the following: Closed Session CONFERENCE WITH LEGAL COUNSEL (Gov Code Sec. 54956.9 (a)) Federal Energy Regulatory Commission (FERC) Docket Nos. EL00-11 1-002 and EL01-84-00. City of Azusa et al v. California Independent System Operator. Recess: 8:15 p.m. Recess Reconvened: 8:21 p.m. Reconvened There was no reportable action taken in Closed Session. No Rpts It was consensus of Councilmembers to adjourn. Adjourn TIME OF ADJOURNMENT: 8:22 P.M. Alf aie SECRETARY NEXT RESOLUTION NO. 02-058. * Indicates Rocha absent. 06/24/02 PAGE FIVE