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HomeMy WebLinkAboutMinutes - July 26, 2004 - UB e l � s AZUSA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JULY 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 OLL CALL Roll Call PRESENT: BOARD MEMBERS: HARDISON, ROCHA, CHAGNON, MADRID ABSENT: BOARD MEMBERS: STANFORD ALSO PRESENT: Also Present City Attorney Martinez, Director of Utilities Hsu, Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Assistant Director of Electric Operations Ramirez,Assistant City Manager Person, City Manager Gutierrez,Administrative Technician Yang, Assistant Director Customer Care/Customer Service Vanca, Electric Engineer Langit, City Clerk Toscano, City Clerk Mendoza. Public Participation Pub Part None. None The CONSENT CALENDAR consisting of Items II- A through II-L, were approved by motion of Consent Cal Board Member Hardison,seconded by Board Member Rocha and unanimously* carried,with the Approved exception of items 11-B and II J, Mayor Madrid abstained from the minutes as she was not in attendance at that meeting. The Minutes of the regular meeting of June 28, 2004, were approved. Min Appvd SPECIAL CALL ITEM. Spec Call Item C. Approval was given to amend the refuse contract budget for fiscal year 2003-2004 for an Amend 03-04 additional $126,400, to the refuse expense account and revenue account to allow for final Budget payment to Athens Services. Athens D. Approval was given to amend the fiscal year 2004-2005 Utility Department Budget to Amend 04-05 increase the Water Division budget by$260,600, Electric Division budget by$293,344, and Budget Customer Service Division budget by $11,000, all to cover omitted projected Utility overtime/standby time costs; approval of an increase in the Customer Services Division budget by $100,000 to cover omitted estimated regular time costs/benefits; and add Customer Service Representative I (1 fulltime of FT) position and two part-time customer Service Representative I (1 fulltime equivalent or FTE) positions together with an increase of $84,342 to the Customer Service Division budget to cover the cost of these positions. E. Approval was given to amend the Western System Power Pool Agreement (WSPPA) with Amend Agmt Panda Gila River, L.P. and authorize the Mayor to execute same. WSPPA F. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSAACCEPTING Res. 04-055 CERTAIN GRANT EASEMENT AND DIRECTING THE RECORDING THEREOF. (Azusa Mobile Grant of Esmt Home Park LLC) G. Approval was given for a contract for mail-in utility payment processing with R T Lawrence Mail-in pymt Corporation, a three year contract and authorize Director of Utilities to sign the Professional Process Services Agreement. RT Lawrence H. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSAACCEPTING Res. 04-056 CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF. (Heavenly Pet Grant of Esmt Resort for Fire Service Line - 1741 W. San Bernardino Ave, WC) Approval was given to award the contract for Destruction of Three Water Wells, Project W- Dest 3 wells 195, to Beylik Drilling, Inc. Beylik Drilling J. SPECIAL CALL ITEM. K. Approval was given to reject sole bid from C.T. &F. Inc. in the amount of $287,540, for Bid Rejection Project LD 2004-1 to furnish and install underground electric street light system and Underground authorization was given to re-bid project. Elect St Light L. The Professional Services Contract for the Preparation of Complete Electric Distribution Prep Elect System Study, was awarded to RW Beck in the amount not-to-exceed $75,873.00 and the Dist Sys Sty City Manager was authorize to execute same. Special Call Items Spec Call Assistant Director of Electric Operations Ramirez responded to questions from Board Members Ass't Dir regarding the rejection of sole bid for renovation to the electric yard at 1020 W. Tenth Street and Electric the requested authorization to re-bid the project. He noted reasons why there was only one bid Operations stating that the timing was not right; many contractors were busy doing summer or school jobs, Comments the bid time was a little on the short side, but also that there is definite interest in the project and Renovation lat there will be more bidders the next time the project is presented for bid. He stated that he Elect Yard !viewed the project with the architect to try and cut down expenses, he listed the items and 6.—iscussion was held between himself and Board Member Hardison regarding the issue. 07/26/04 PAGE TWO Moved by Board Member Hardison,seconded by Board Member Rocha and unanimously* carried Bid Rejection to approve the rejection of sole bid from ABEAM Construction in the amount of$1,518,000, for Renovation the renovation to the electric yard at 1020 W. Tenth street and that authorization be given to re- Elect Yard bid the project. Thairperson Chagnon addressed item regarding the sale of Water Property at 16706 East Cypress Chagnon street in Covina, suggesting that the City save money by not listing it with an agent and perhaps Comments ctilizing a/the bidding process instead. Discussion was held between Board Members and.City Discussion Attorney Martinez regarding the issue. Assistant to the Utilities Director Kalscheuer suggested that staff investigate different realtors and Kalscheuer listing options and advised that he will make a recommendation at the September 7, 2004, Comments meeting. The Mayor suggested local realtors. Board Member Hardison offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, FINDING THAT Res. 04-054 THE PUBLIC INTEREST AND NECESSITY REQUIRE THE SALE OF SURPLUS PROPERTY, DECLARING Intent to ITS INTENT TO SELL RESIDENTIAL PROPERTY LOCATED AT 16706 EAST CYPRESS STREET Sell 16706 E. (ASSESSOR PARCEL NO. 8419-022-270) AND SETTING A HEARING FOR CONSIDERATION OF Cypress St PROTESTS. Surplus Prop Moved by Board Member Hardison, seconded by Board Member Rocha to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: HARDISON, ROCHA, CHAGNON, MADRID NOES: BOARD MEMBERS: NONE \BSENT: BOARD MEMBERS: STANFORD ,oard Member Madrid asked questions regarding items II-F, Acceptance of Grant of Easement Madrid "Tom Azusa Mobile Home Park, LLC. why an easement is needed at this time and item II-G, Questions Contract for Mail-In Utility Payments Processing with RT Lawrence Corp., with regard to living wage requirements; staff responded and the information regarding living wages would be provided in memo form as soon as possible. Scheduled Items Sched Items Fund Transfer from Public Benefit Charge Fund to Wholesale Power Revenue Account. Fund Trnsfr Director of Utilities Hsu advised that when the Board approved the Renewable Portfolio Standard Pub Benefit for the electric utility to comply with Renewable Resource Legislation SB 1078, it was understood To Wholesale that the procurement may cause the electric utility to pay more for the energy and that it would Pwr Rev Acct have to be subsidized; it was recommended that it partially use Public Benefit Charge and recommended that $60,000 come from that account. Moved by Chairperson Chagnon, seconded by Board Member Hardison and unanimously* carried to approve the fund transfer in the amount of $60,000 from PBC Fund to wholesale power revenue account to mitigate the market cost of Renewable Resource Procurement and also approve an appropriation increase of $60,000 in capacity and energy account of the Light Fund to pay for the market cost of Renewable Resource Procurement. Director of Utilities Hsu detailed the proposal of the San Juan Replacement Power Cost Recovery Dir of Util 1echanism, which consisted of the 1) Establishment of Base San Juan Replacement Power Cost Comments udget, 2) Calculation of Actual San Juan Replacement Power Cost, 3) Comparison of the Cost San Juan Pwr ,,.._.ifference, and 4) Quarterly Cost Recovery Mechanism. Board Member Madrid expressed Cost Recover concern regarding the impact to the rate players with this type of process. Mechanism 07/26/04 PAGE THREE Assistant Director of Resource Management Tang and Director of Utilities Hsu addressed the issue detailing the mechanism and advantages of fuel cost adjustment and answered questions posed by the Board Members regarding time span expectation, Insurance cost, deductible, recovery, coverage, rate stabilization funds, minimum reserve, and reserve funds. hairperson Chagnon offered a Resolution entitled: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING THE SCHEDULE OF Res. 04-057 ELECTRIC RATES AND CHARGES TO ADD A SCHEDULE FOR RECOVERY OF SAN JUAN Amend REPLACEMENT ENERGY COST VIA FUEL COST ADJUSTMENT CLAUSE. Schedule Of Elect Moved by Chairperson Chagnon, seconded by Board Member Hardison to waive further reading Rates and adopt. Resolution passed and adopted by the following vote of the Board Members: San Juan Replacement AYES: BOARD MEMBERS: HARDISON, ROCHA, CHAGNON, MADRID Energy Cost NOES: BOARD MEMBERS: MADRID ABSENT: BOARD MEMBERS: STANFORD Director of Utilities Hsu requested the Reclassification of Assistant Director-Power Resources to Reclass. Assistant Director of Utilities; he advised that this is a request to begin the process and that it Assistant would come back for final approval. He stated that this is part of his plan for succession training. Director of Moved by Board Member Hardison, seconded by Board Member Rocha and unanimously carried Utilities to approve the reclassification of Mr. Bob Tang from Assistant Director-Power Resources to Assistant Director of Utilities, with no change in salary. Staff Reports/Communications Staff Rpts he Monthly Legislative and Regulatory Updates were presented,but,there were no comments or Legislative questions towards the document. Updates The Monthly Power Resource Update was presented, but, there were no comments or questions Monthly Pwr directed towards it. • Resources Director of Utilities Hsu advised that the APPA Article: Industry Challenges in Changing Times is APPA Article for information purposes and the Annual Adjustment of Replacement Water Cost Adjustment RWCA Factor is also an information item. Directors' Comments Dir Cmmts Board Member Rocha invited all to attend the recognition ceremonial for Korean Veterans to be Rocha held tomorrow, July 27th at the City Hall Flag pole. He also thanked the family of Jonathan D. Comments Jones,who achieved the Eagle Scout Rank. He advised that money will be coming from the office of Senator Hilda Solis for the purchase of land for the development of a passive park at 221 N. Soldano; he advised that he would come back with the specifics for the project. He talked about the alleys between 3`d and Hollyvale. Discussion was held regarding the Park Master Plan, pocket parks, and maintenance after they are obtained. Board Member Madrid provided an update on the Sister City Zacatecas Youth Exchange program. Madrid/com ssistant City Manager Person advised that he will come up with an update on the status of Ms. Ass't City Mgr uzanne Avila's transition over to the River and Mountains Conservancy and he was advised to Person provide that update at the regular City Council meeting of September 7, 2004. 07/26/04 PAGE FOUR City Manager Gutierrez advised that she would like to have a regular meeting on August 16`hwhich City Mgr was formerly being considered for cancellation, as not having a meeting for four weeks would Comments adversely impact City business. She stated that the workshop meeting for August gen and Utility Board meeting of August 23'd will not be held, as proposed. It was consensus of Board Members to hold the regular meeting of August 16`n ..r was consensus of Board Members to recess to Closed Session to discuss the following: Closed Session Clsd Sess Conference with Legal Counsel - Existing Litigation Gov. Code Sec. 54956.9 (a) Conf w/Legal Kirkwall Substation Agreements Cnsl FERC Docket No. ER 04-667 Conference with Legal Counsel - Existing Litigation Gov. Code Sec. 54956.9 (a) Conf w/Legal California Energy Crisis Refund Proceedings Cnsl FERC Docket No. EL 00-95 The Board Member recessed at 7:29 p.m. and reconvened at 8:00 p.m. Recess/rec City Attorney Martinez advised that there was no reportable action taken in Closed Session. City Attny No action It was consensus of the Board Members to adjourn. Adjourn TIME OF ADJOURNMENT: 8:01 P.M. diger SECRETARY NEXT RESOLUTION NO. 04-058. * Indicates Board Member Stanford absent. „_,_7/26/04 PAGE FIVE