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HomeMy WebLinkAboutMinutes - March 28, 2005 - UB l l'-'1•4411111) • AZUSA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, MARCH 28, 2005 - 6:42 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 BOARDMEMBERS: HARDISON, CARRILLO, ROCHA, HANKS, CHAGNON BOARDMEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, Director of Utilities Hsu,Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang,Assistant Director of Electric Operations Ramirez,Assistant Director of Water Operations Anderson,Assistant Director of Customer Care and Solutions Vanca, Administrative Technician Yang, Senior Electrical Engineer Langit, City Clerk Mendoza, Deputy City Clerk Toscano. Scheduled Item Sched Item Election of Officers: Elect officers Moved by Board Member Hardison, seconded by Board Member Rocha and unanimously Chagnon carried to appoint Diane Chagnon as Chairperson for the Utility Board. Chairperson Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously Hardison carried to appoint Dave Hardison as Vice Chairperson for the Utility Board. Vice Chair It was consensus of the Board Members that Vera Mendoza, City Clerk, remain as Utility Mendoza Board Secretary. Secretary Public Participation Pub Part Mr.Art Morales addressed the Board Members expressing concern regarding utility rates. A. Morales He suggested that correspondence be sent out to residents to explain why there have not Comments been rate reductions but only increases in rates. The CONSENT CALENDAR consisting of items II-A and II-B, was approved by motion of Consent Cal. board Member Rocha, seconded by Board Member Hardison and unanimously carried. Approved Board Members Hanks and Carrillo abstained from the Minutes as they were not in attendance at that meeting. A. The Minutes of the regular meeting of February 28, 2005, were approved as Min appvd written. B. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA WANING FORMAL SEALED Res. 05-C26 BIDDING PROCEDURES AND AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER FOR Emergency AN AMOUNT NOT-TO-EXCEED $131,480 FOR EMERGENCY WATER PIPELINE REPAIR. Repair Orange Ave (The above items were inadvertently omitted from the original minutes, but were approved as noted at the meeting of February 28, 2005). Scheduled Items (Continued) Sched Items Assistant to the Utilities Director Kalscheuer, who administers the trash contract with Athens Services, presented a contract requiring a rate adjustment stating that annually C. Kalscheuer adjustments are made for changes in Consumer Price Index, as well as changes in landfill Comments rates controlled by the Sanitation District. He stated that in 2000 Council approved the Re: Athens contract with Athens Services for MRF, Materials Recovery Facility; to facilitate City's Services compliance with the State recycling mandate, AB 939. This mandate required cities and counties throughout the state to divert waste from landfills by recycling; there were two target dates, one was 1995 which required cities to divert 25% of the waste stream from the landfills, and the other was the year 2000, when cities were to divert 50% of their waste from landfills. He stated that the collection cost component is being adjusted by CPI of 1.18%, and the processing and disposal cost component are being adjusted based on actual tons Athens collects. He stated that in 2013 waste will be transported by rail to the desert, so landfill tip fees are going up for the next few years. He then cited proposed total increase rates for services effective April 1, 2005 as follows: Single Family Barrel Service-4.4% change, Multi-Family bin Service-6.60%change and 3 Cubic Yard Bin- 1 time per week-6.07% change. He and Mr. Dennis Chiappetta responded to questions posed by Board Members regarding options for future landfills and cost increases. Mr. Kalscheuer advised that they would come back with a full report on how to reduce the amount of waste going to the landfills. Board Member Hardison offered a Resolution entitled: Res. 05-C27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, APPROVING THE Amendment SEVENTH AMENDMENT TO THE EXCLUSIVE FRANCHISE AGREEMENT WITH ARAKELIAN Exclusive ENTERPRISES TO AMEND THE SERVICE RATES AND FEES FOR THE PERIOD OF APRIL 1, Franchise 2005 THROUGH MARCH 31, 2006. Agreement Arakelian Moved by Board Member Hardison, seconded by Board Member Hanks to waive further Enterprises reading and adopt. Resolution was passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: HARDISON, CARRILLO, ROCHA, HANKS, CHAGNON NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE 03/28/05 PAGE TWO Assistant Director of Water Operations Anderson presented item regarding Lease of City C. Anderson Property at the Heck Reservoir Site on San Gabriel Canyon Road to Verizon for Wireless Lease of Prop Facilities, stating that at the last meeting the lease amount of$1,500 was rejected by the Verizon Board Members and he was able to go back and re-negotiate for an amount of $1,995. Moved by Board Member Hardison, seconded by Board Member Rocha and unanimously Lease Verizon carried to approve a lease to Verizon Wireless for a portion of property at the Canyon Approved Filtration Plant Heck Reservoir site in the amount of $1995 per month, and to authorize City Manager to sign execution agreement version as approved by City Attorney. Staff Reports/Communications Staff Rpts Assistant Director of Electric Operations Ramirez addressed the Board Members detailing D. Ramirez the history of the City Yard Renovation Project to be located at 1020 W.Tenth Street. He City Yard stated that the project construction was to be completed by May 8, 2005, but there is a Renovation six week delay due to the over abundance of rain this season. He noted several change Update orders for the project i.e. ice machine, drinking fountain, and ceiling tile, etc. He responded to questions posed by Board Members regarding rain delay, how to catch up, and strategy in place for refurbishing existing location at the City Yard. Assistant Director of Customer Care and Solutions Vanca addressed the Board Members K. Vanca providing background of the need to obtain a new Systems & Software Customer Customer Information System and Interactive Voice Response System. She talked about work Information completed, work in progress, work delayed and issues of concern. She stated that the System target go date is July 5, 2005. She then answered questions from Board Members Update regarding conversion, training, and flow time. Assistant Director of Resource Management Tang provided details on the Power Resources B. Tang Division Monthly Report which included Status of Projects, Power Consumption Power Comparison,Wholesale Market Trend, Power Resource Budget Update and Preliminary FY Resources 03-04 Light Fund Operating Result. Projects included Kirkwall cost audit work, Economic Update Analysis of Banning's local Generation Project, California Independent System Operator's (CAISO) amendment #60 settlement process, CAISO electric market redesign process, coverage of retail service issues related to Montarra development, and electric power exchange opportunities for San Juan. Assistant Director of Resource Management Tang provided an update on Legislative & B. Tang Regulatory issues detailing the California Public Utilities Commission (CPUC) Resource Legislative & Adequacy Requirement (RAR), where CPUC is setting up state energy policies regarding Regulatory reserve margins; he also detailed the California Independent System Operator's (CAISO) Market Redesign, who is overseeing the redesign of the high voltage transmission. Assistant Director of Resource Management Tang provided background information B. Tang regarding power sources and how the City provides electric utilities to customers. He Power provided detailed information regarding the joint power projects the City has with Resources Southern California Public Power Authority (SCPPA), New Mexico San Juan Unit 3, Palo &Fuel Cost Verde Nuclear Power Plant, and the Hoover Hydro Resource. He then provided the Adjustment Quarterly Fuel Cost Adjustment for San Juan Resource update and the rate making mechanics. He detailed the process for which is intended to credit ratepayers with cost saving that are realized when the power plant operates reliably and replacement power cost are avoided, and allow the Utility to increase revenues to recover a portion of the replacement power costs when the San Juan resource experiences outages. He stated that at this time the billing system doesn't give credit, thus the credit balance at this time will be carried forward to offset any under recoveries in the coming months or until a crediting mechanism becomes fully functional. He then answered questions posed by Board Members regarding the Fuel Cost Adjustment. 03/28/05 PAGE THREE Director of Utilities Hsu provided an update on the Broadband Over Powerline Technology. J. Hsu He advised that there was a study done in the year 2000 and found it was not cost Broadband effective. With the latest technology, recently they have signed a non-disclosure Powerline agreement with Access Broadband; he referred the issue to Mr. Kalscheuer. Assistant to the Utilities Director Kalscheuer addressed the issue detailing the background C. Kalscheuer of Broadband Over Powerline stating that they have been exploring wireless network and Broadlband broadband over powerline. He stated that they do have been working with Access Over Power Broadband and expect to receive a business model by next month. Line He announced that they have received an offer from the company based on preliminary Kitchener data to fully finance a BPL deployment. He stated that there is need to review the options Continued presented and negotiate the terms and usage the cost, etc. He stated that they are Wireless exploring a wireless component with a company called Wireless Facility Inc., and have Info received a proposal from them for pilot program. He also noted that an automated meter reading study is being conducted by Karen Vanca and there may be some overlap of findings/recommendations. Senior Electrical Engineer Langit addressed the issue stating that Chairman of the Electric F. Langit Regulatory Commission issued a statement encouraging the deployment of Broadband Comments Over Powerlines and that is the driving interest of the companies. He stated that the Re: BPL company that is currently working with City of Azusa is trying to make it the first Municipal Utility in the State of California to use BPL Director of Utilities Hsu responded to question posed by Board Member Hardison stating J. Hsu & that as far as revenue to the City, they are still work on the details of the project, and it will C. Kalscheuer be a model. Assistant to the Utilities Director Kalscheuer also responded stating that they Comments are looking at a host of services that will be offered; and the company will be the network BPL designers. Director of Utilities Hsu advised Board Members of the following upcoming events: J. Hsu Southern California Public Power Authority (SCPPA) Annual Congressional Staff Tour of Ancmts SCPPA Facilities (Hoover Dam)June 3-5, 2005 and APPA Conference in Anaheim on from June 18- 22, 2005. He advised all members to let him know if they will be attending. He also announced the Chamber of Commerce State of City, State of School Breakfast to be held on April 28, 2005, at 8 a.m. He stated that invitations will come from the Azusa Chamber of Commerce. Chairperson Chagnon announced the following: Saturday,April 9, 2005, from 7:30 p.m. D. Chagnon to 11:30 p.m. is the Azusa American Little League Fundraiser Dance will be held at the Ancmts Azusa Woman's Club; for more information call Lily Rubio at 705-7241. The Kids Come First Gold Tournament will be held on June 17, 2005, all proceeds will go towards Splash Zone; Operation Santa Clothes, and Youth Fire Department Training. Moved by Board Member Hardison,seconded by Board Member Carrillo and unanimously Adjourn carried to adjourn. TIME OF • JOURNMENT: : 19 P.M. SE TARY NEXT RESOLUTION NO. 05-C28. 03/28/05 PAGE FOUR