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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