HomeMy WebLinkAboutMinutes - November 22, 2004 - UB =
1
"AZUSA:
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, NOVEMBER 22, 2004 - 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: BOARD MEMBERS: STANFORD, ROCHA, CHAGNON, MADRID
ABSENT: BOARD MEMBERS: HARDISON (Entered meeting 6:50 p.m.)
ALSO PRESENT: Also Present
City Attorney Ferre, City Manager Gutierrez, Director of Utilities Hsu, Assistant to the Utilities
Director Kalscheuer,Assistant Director of Resource Management Tang,Assistant Director of Water
Operations Anderson, Director of Human Resources Hanson, Associate Electric Engineer Vuong,
Assistant Director of Customer Care and Solutions Vanca, Senior Electric Engineer Langit, Office
Specialist Cawte,Administrative Technician Yang,City Clerk Mendoza, Deputy City Clerk Toscano.
Public Participation Pub Part
None. None
The CONSENT CALENDAR consisting of Items II- A through Il-I, were approved by motion of Consent Cal
Board Member Stanford, seconded by Rocha and unanimously* carried, with the exception of Approved
items H- C and II-I, which were considered under the Special Call portion of the Agenda.
A. The Minutes of the regular meeting.of October 25, 2004, were approved as written. Min Appvd
B. Approval was given to purchase one underground cable puller from Sherman&Reilly,Inc., in Pur Undrgrnd
the amount of$46,650. Puller
Sherman &
Reilly, Inc.
C. SPECIAL CALL ITEM. Spec Call
D. Approval was given to purchase Itron's MV-90x1 time-of-use billing software upgrade and the Itron's
City Manager was authorized to sign Professional Services Agreement and Software License lime-of-use
Maintenance Agreement;and amend current year budget by$16,500 to pay for upgrade and Software
maintenance service agreement.
E. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Res. 04-C90
REQUESTING ANNEXATION OF PARCEL 8624-024-902 TO COUNTY SANITATION DISTRICT Annex Nurs
NO. 22 OF LOS ANGELES. Rsvr site
F. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ESTABLISHING THE Res. 04-C91
TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT IN ACCORDANCE WITH ISO Trans
AZUSA'S TRANSMISSION OWNER TARIFF AND PROVIDING FOR TARIFF SHEET CHANGES TO Rev Bal Acct
IMPLEMENT THE ADJUSTMENT. Adjstmt
G. Authorization was given to staff to conduct cost audit of Edison's constructions costs for Audit Edison
Kirkwall Substation through Navigant Consulting in an amount not-to-exceed$23,925; and to Construction
authorize the City Manager to execute professional agreement. Costs
H. Formal bidding procedures were waived in accordance with the Azusa Municipal Code Agrnt w/Lund
Section 2=523 Section-C,and contract for software-support-services with Lund-Performance Performance
Solution in the amount of$15,000, was approved. Solution
I. SPECIAL CALL ITEM. Spec Call
Special Call Items Spec Call
Items
Chairperson Chagnon addressed item Il-C,plans and specification for refurbishing existing Electric Elect Util
Utility Service at City Hall requesting that after the bids are received, a cost analysis be made of Svs City Hall
the cost of the project comparing outside agency versus it being done in house.
Moved by Board Member Stanford,seconded by Chairperson Chagnon and unanimously*carried Approved
that plans and specifications for refurbishing existing electric utility service at City Hall (213 East As amended
Foothill Boulevard) be approved and the City Clerk was authorized to advertise for bids.
Board Member Rocha addressed item II-I, regarding purchase of Jackets for Light and Water Field Pur of Jackets
Staff. Director of Utilities Hsu advised that purchase of the jackets was from Uniform Allowance. Kathco
Discussion was held regarding the cost of the jackets and Assistant Director of Customer Care&
Solution Vanca noted that jackets would have various enhancements, i.e. liners and hoods, etc.
Moved by Board Member Stanford,seconded by Chairperson Chagnon and unanimously*carried Pur of Jackets
that approval be given to purchase 42 jackets with Azusa Light and Water logo for all field staff Approved
from the lowest bidder, Kathco, for a total cost of$.12,001.55.
Scheduled Items Sched Items
Assistant to the Utilities Director Kalscheuer addressed returning item regarding the Materials C. Kalscheuer
Exchange Web Service Contract. He noted that there were three questions asked the last time it Materials
was presented and responded as follows: What is the fund balance of AB 939? The current fund Web Service.
balance in the account is approximately$107,700. What do other cities or customers think about Contract
�.—Genacom's web services? He stated that three cities were contacted: Napa, Santa Clarita, and
Ecology Action of Santa Cruz and their responses were positive and that they would work with
Genacom again.
11/22/04 PAGE TWO
He stated that the last question related to how many Azusa residents have Internet service. He C. Kalscheuer
responded that according the R.W. Beck who conducted a statistically representative survey of Continued
Azusa residents in October of 2002, about 58%of Azusa residents have Internet access in their Comments
home. He recommended approval of the contract with Genacom, Inc. He responded to
questions posed regarding the driving force for this contract,stating that AB 939,the State Waste
Board is promoting materials exchanges, Genacom is promoting local materials exchanges,and
'-- other California Waste groups are promoting recycling and/or reuse of materials.
Moved by Board Member Stanford,seconded by Board Member Rocha and unanimously*carried Agmt wI
to approve a three-year agreement with Genacom, Inc., for web services which would add a Genacom, Inc
Materials Exchange function to Azusa Light&Water's website; authorize City Manager to execute Materials
contract with Genacom;and approve of a budget amendment using AB939 fees in the amount of Web Service
$12,000 to pay Genacom, Inc. for web services during remainder of the fiscal year.
Assistant to the Utilities Director Kalscheuer presented the results of the Telecom studies they C. Kalscheuer
have working on for the past year. He spoke about the Non Disclosure Agreement the City has Telecom
currently with Aiirmesh and the Information found throughout last year regarding wireless mess Research
network, where wireless Wi Fl routers that are deployed on street poles; he described the Update&
devices, noting that they provide the following types of network: high speed Internet service to Non-
residents, businesses and City employees, mobile Internet for police and field workers, voice disclosure
communication capabilities, video surveillance from remote areas of the city, etc. He agreement
recommended that they terminate the non-disclosure agreement with Aiirmesh Wireless,Inc and
authorize continued dialogue with Wireless Facilities, Inc. He and Senior Electric Engineer Langit
presented a power point detailing and describing broadband technology,which was demonstrated
to them in a recent trip to Cincinnati and discussed with the Board Members the feasibility of
incorporating it in Azusa, in addition to the many advantages it would provide to the City. He
then answered question from the Board Members regarding investment,return,competition,cost,
ongoing cost maintenance, service plan, life expectancy, underground utilities, production
devices, and customer base.
Moved by Board Member Madrid,seconded by Board Member Rocha and unanimously carried to Agmt Access
terminate non-disclosure agreement with Alirmesh Wireless, Inc.; authorize continued dialogue Broadband
with Wireless Facilities, Inc.,and authorize staff to execute non-disclosure agreement with Access Dialogue w/
Broadband. Wireless Fac.
Director of Utilities Hsu addressed item regarding the Request for Proposals for a Meter Strategy, Dir of Util
stating that in the existing meter system there are twelve hundred electric AMR meters installed, RFP
but none work on water meters yet. He stated that there is a need to evaluate current and Meter
evolving technologies, conduct cost-benefit analyses, and recommend options most viable for Strategy
Azusa Light and Water. He recommended solicitation of proposals for a comprehensive meter
strategy study with recommendations.
Moved by Board Member Stanford, seconded by Board Member Hardison and unanimously RFP appvd
carried to approve solicitation of proposals for a comprehensive meter strategy study with Meter Stra.
recommendations.
Assistant Director of Resource Management Tang addressed the Board Members detailing the B. Tang
need of the City to secure power resources and discussions with the City of Colton regarding the Comments
feasibility of securing power generating units.
Moved by Board Member Stanford,seconded by Chairperson Chagnon and unanimously carried Joint Study
to authorize staff to participate in a joint feasibility study to upgrade an existing power plant For Power
located in the City of Colton and reimburse Colton at a cost not-to-exceed $22,500. Generation
Project/City
Of Colton
'�"" 11/22/04 PAGE THREE
04-C92
Board Member Stanford offered a Resolution entitled: Wtr Rate
Miller Brewing
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA,
APPROVING WATER RATE ADJUSTMENT FOR MILLER BREWING COMPANY, A WISCONSIN
CORPORATION.
Moved by Board Member Stanford,seconded by Board Member Rocha to waive further reading and
adopt. Resolution passed and adopted by the following vote of the Board Members:
AYES: BOARDMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: NONE
Staff ReportslCommunica ons Staff Rpts
Updates
Assistant Director of Customer Care and Solutions Vanca provided an update on Customer Information K.Vanca
System. She talked about the software,services,video conferencing training and staff involvement; Comments
she stated that they are on schedule.
Director of Utilities Hsu noted that the project schedule for the Electric City Yard Renovation is in the City Yard
packet beginning with the re-bid opening on October 5, 2004 and ending with the construction Renovation
schedule 160 days,tentative start date of November 29, 2004 and completion by May 9, 2004. schedule
Monthly Power Resources Update and Legislative and Regulatory Update were presented together Monthly Pwr
and the following was highlighted by staff: Legislative
Assistant Director of Resource Management Tang provided an update on the Resource Adequacy Asst. Dir
Requirement (RAR), stating that the CPUC issued a decision regarding RAR requiring the Investor Resource
Owned Utilities(IOUs)to have 15-17%of"extra"power resources at all times for contingency purposes Management
("planning Reserves"), he stated all the munis will voluntarily comply and IOUs are to file compliance Tang
plan by September 30,2005 to be in compliance by June 1,2006. He stated that staff has completed RAR
the preliminary analysis of resource portfolio in order to comply with RAR and should finalize strategic
plan to be presented to the Utility Board by the 1st quarter of 2005.
Assistant Director of Resource Management Tang provided an update Exit Fees,stating that due to the Asst. Dir
energy crisis of 2000-01, the State entered into many pricey long term power contracts to serve Resource
Investor Owned Utilities'Customers. Recognizing that some IOUs customers my leave the IOUs either Management
through direct access transactions or municipalization,the CPUC instituted the exit fees to be charged Tang
to IOUs loads no longer served by the IOUs. He stated that on November 19th,CPUC issued a decision Exit Fees
granting limited exemption of exit fees to load served by munis. He stated that without the
exemption,the exit fees would affect the Monrovia Nursery Project,he detailed. He stated that one
exemption grants 150 MW of new muni loads in SCE and PG&E service territories from paying exit fees
and the second exemption grants up to 210 MV of "transferred loads" from paying exit fees, first
priority given to Northern California munis and then the rest of munis;exemption will be granted on a
first-come first-serve bases. He detailed the definitions of both exemptions,noted the City's projects
that could be affected and advised that staff is working closely with CMUA to get exemptions for the
anticipated loads served by the City.
11/22/04 PAGE FOUR
Assistant Director of Resource Management Tang stated that the California ISO continues to have Asst. Dir
trouble serving its customers reliably and has added Amendment#60 to its Tariff in June 2004. Resource
He stated that the amendment reallocates certain costs based on customer class and dollar Management
amount involved is $300 million per year. He stated that the Southern California Cities of Tang
Anaheim,Azusa, Banning, Colton, Pasadena, Riverside, and Vernon pay a combined cost of$8 Amendment
million currently,the CAISO proposal could potentially increase the cost paid by southern munis #60-CAISO
to$15 million a year;Azusa may go from$300,000 to$600,000 per year. He stated that Staff is
working closely with D.C. counsel and other Cities in preparation of testimonies defending the
cities positions. He detailed the issue, noting historical events, the impact to local generators,
events which have resulted in CAISO Amendment#60 and how the City plans to respond.
Director of Utilities Hsu announced that the California Municipal Utilities Association is holding its Dir of Util
Annual Capitol Day Events and Legislative Update in Sacramento, on Monday,January 10, 2005 Ancmt
and advised that if anyone wishes to attend they should contact Liza Cawte of his staff and she CMUA
will make travel arrangements. Capitol Day
Director of Utilities Hsu also announced the SCPPA Holiday Luncheon and Legislative Briefing on Dir of Util
Thursday, December 16, 2004, a the Pasadena Westin, and advised that if anyone wishes to SCPPA
attend they should also contact Liza Cawte and she will RSVP with SCPPA. Holiday
Luncheon
Directors' Comments
Dir Cmts
Director of Utilities Hsu suggested that the Utility Board Meeting of December 28, 2004, be 12/28/04 Mtg
cancelled; it was consensus of the Board Members to do so. Cancelled
Board Member Madrid advised of an issue regarding the potential development of the corner of Madrid
Arrow Highway and Azusa Avenue by Blue Star Development and staff was directed to look into Comments
the matter. She also received a called from a realtor,John Titola who is interested in a conference
center in the area of El Encanto.
City Manager Gutierrez advised that Congresswoman Solis called her today and advised that the City Mgr
City of Azusa has received a grant for the Azusa Health Center in the amount of$320,000 and Ancmt
$97,000 for construction.
Director of Utilities Hsu invited all to attend a Light and Water luncheon, on Tuesday, November Dir of Util
23`d from 11:30 p.m.- 1:30 p.m. Invitation
Closed Session Closed Sess
It was consensus of the Board Members to recess to Closed Session to discuss the following:
CONFERENCE WITH LEGAL COUNSEL Conf w/Legal
Government Code Section 54956.9 (b) Counsel
Utility Transfer to General,FY 2003-2004 Utility Trnsfr
REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Real Prop
Address: 16706 East Cypress Street, Covina 91722 Neg
Agency Negotiators: Director of Utilities Hsu and Assistant to Director of Utilities Kalscheuer 16706 E.
Under Negotiation: Price and Terms of Payment Cypress St
CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code Sec. 54957.6) Conf w/Labor
Agency Negotiators: City Manager Gutierrez and Assistant City Manager Person Negotiators
Organizations/Employee: ACEA,AMMA, CAPP, Laborers, Executive
11/22/04 PAGE FIVE
CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code Sec. 54957.6) Conf w/Labor
Agency Negotiators: City Manager Gutierrez and Assistant City Manager Person Negotiators
Organizations/Employee: ACEA, IBEW, CAPP, Laborers, Executive
PUBLIC EMPLOYMENT (Gov. Code Sec. 54957) Pub Emplmt
Title: Human Relations Commission Coordinator HRC Coor.
The Board Members recessed at 7:46 p.m. and reconvened at 8:24 p.m. Rcss/Rcvn
City Attorney Ferre advised that there was only one reportable action as follows: It was consensus Accept offer
of the Board Members to accept the offer for the property at 16706 E. Cypress Street for sale of prop.
$310,000 subject to satisfactory negotiation of sales contract. 16706 E.
Cypress St.
Covina
It was consensus of the Board Members to adjourn. Adjourn
TIME OF ADJOURNMENT: 8:25 P.M.
� h
1 /
SECRETARY
NEXT RESOLUTION NO. 04-C92.
*Indicates Board Member Hardison absent.
11/22/04 PAGE SIX