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Home My WebLink AboutMinutes - April 26, 2004 - UB 4110-1 I.71 010 �-- AZUSA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, APRIL 26, 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: HARDISON,STANFORD, ROCHA, CHAGNON,MADRID ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, Assistant Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Assistant Director of Water Operations Anderson, Assistant Director of Customer Care and Solutions Vanca, Customer Service Leader Tapia, Business Development/Public Benefits Coordinator Reid, Assistant City Manager Person, Deputy City Manager Gutierrez, Administrative Technician Yang, Assistant Director of Electric Operations Ramirez, Deputy City Clerk Toscano, City Clerk Mendoza. The Utility Board Members recessed to Closed Session to discuss the following: Closed Sess CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION- (Gov. Code Sec. 54956. Conf w/Legal (c)). One Potential Case. Counsel The Board Members recess at: 6:32 p.m. Recess The Board Members reconvened at: 7:12 p.m. Reconvened There was no reportable action taken in Closed Session. No Reports Public Participation Pub Part Mr. Art Morales addressed the Board Members suggesting that materials from the staff report A. Morales items be made available to the Public. Assistant Director of Resource Management Tang Comments responded stating that agenda packets with copies of staff reports are placed in public places in :he City Clerk's Office, the Light and Water Department and the City Library. CONSENT CALENDAR consisting of Items III- A through III-G, were approved by motion of Consent Cal Board Member Stanford, seconded by Board Member Hardison and unanimously carried,with the Approved exception of item III-B, which was considered under the Special Call portion of the Agenda. Ill-B Spec A. The Minutes of the regular meeting of March 22, 2004, were approved as written. Min Appvd B. SPECIAL CALL ITEM. Spec Call C. Authorization was given to develop and release a Request For Proposal for a third-party RFP 3rd Party vendor to process mail-in utility payments. Vendor D. Approval was given to amend the blanket purchase order for Basic Chemical Solutions, LLC, Inc Blanket #410814 from $40,000 to$60,000, a net increase of$20,000, to enable purchase of liquid PO Basic chlorine. Chemical Sol. E. Approval was given to amend purchase order for AppleOne Inc., #007191 from$10,000 to Amend PO $21,000, a net increase of $11,000, to pay for temporary receptionist services. AppleOne F. Specifications for renovation of the Electric Yard at 1020 W. Tenth Street were approved and Specs Elect the City Clerk's Office was authorized to advertise for bids. Yard Ren. G. Notice of Completion for Project W-185, Capital Improvement Project, was approved and NOC CIP the City Clerk's Office was directed to execute same and have recorded at Office of the Los Prj W-185 " Angeles County Recorder. Special Call Items Special Call Board Member Madrid suggested that proposed resolutions relating to the Policy Governing Madrid Transfers from Utility to the City, be continued and suggested that certain changes be made Policy regarding the Transfer Policy. It was consensus of the Board Members to continue the item to the Governing next Council meeting or Utility Board meeting. Transfers Scheduled Items Sched Items Assistant Director of Resource Management Tang addressed item regarding the contract with Asst. Dir Duke Energy Merchant America, LLC, for purchase of 15 Megawatts. He stated that there was a Res. Mgmt survey of the power market for suitable power produces taken, the preliminary analysis of market Tang survey results and reporting of the findings was brought to the Utility Board in February, 2004, a Comments Request for Proposal (RFP) was issued on March 1st and they were evaluated by staff and an independent consultant, Henwood Energy Services. He presented the final analysis and recommendation for consideration. He noted that the 15 MW of electric capacity will be for the summer months; the term will be for seven years commencing May 2008 through October 2014. He then answered question posed by the Utility Board Members regarding process and costs, -etainer and source of energy. 04/26/04 PAGE TWO Moved by Board Member Stanford, seconded by Board Member Hardison and unanimously Agmt w/Duke carried to authorize the Mayor to execute the agreements with Duke Energy Merchant America, Energy LLC ("DEMA") for the purchase of fifteen (15) megawatts of summer electric capacity Merchant commencing May 2008 through October 2014. America Assistant Director of Customer Care and Solutions Vanca addressed item regarding Casa Azusa Vanca ocated at 129 W. 9th Street and 153 W. 9th Street, in Azusa. She advised that the Homeowners Casa Azusa ,.....Association of Casa Azusa Condominium is requesting a refund of$16,800 for alleged over billing Comments for water at the above noted addresses from September 2000 through December 2003. She detailed the process utilized for meter tests that were conducted throughout the noted years and recommended the following: (1)exclude the period of September 2000 through December 2002 from settlement consideration due to accurate meter tests; (2)require one full year going forward of billing history after new meters are installed at 129 W. 9thStreet and 153 W. 9th Street before determining if a billing adjustment is warranted for period of January 2003 through December 2003; and (3) if an adjustment is warranted, require that Azusa Light&Water pay interest on the adjustment amount at an annual rate of 3%. Staff Reports/Communications Staff Rpts Assistant Director of Resource Management Tang presented the Legislative Update, requesting Tang that the Mayor sign a letter opposing Senate Bill 1478, which the Sher (Renewable Energy Legislative Procurement), which increases the renewable portfolio standard (RPS) goals for Municipal Updates Utilities; he stated that they are not opposing the substance of the Bill, but, rather the implementation which does not recognize what the City has already done and which imposes unrealistic deadlines that the City may or may not be able to meet. It was consensus of the Board Members to authorize the Mayor to sign a letter in opposition to Senate Bill 1478, addressed to State Senator Gloria Romero. The Monthly Power Resource Update was noted but there were no questions or comments Monthly Pwr directed towards it. Resources Assistant Director of Resource Management Tang presented several pictures of the Kirkwall Tang Substation Project Substation and a map of the area stating that the station is fully energized as of Kirkwall last week. He commended Senior electric Engineer Langit on a job well done. After discussion, Substation the date for the dedication was scheduled for Wednesday, May 26, 2004, at 5:00 p.m. 5/26/04 Ded There was no discussion regarding the Southern California Edison's' Rate Reduction Proposal. Rate Red. Assistant Utilities Director Kalscheuer displayed the award received from the California Municipal Award for Utilities Association to Azusa Light &Water for Drought Resistant Plan Program (DriP) Program. Drip Pgrm Assistant Director of Resource Management Tang congratulated Assistant Utilities Director Kalscheuer and Business Development/Public Benefits Coordinator Reid for their work on the Program. It was consensus of Councilmembers to adjourn. Adjourn TIME OU' T: 7:52 P.M. SECRETARY NEXT RESOLUTION NO. 04-C32. 04/26/04 PAGE THREE