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HomeMy WebLinkAboutMinutes - June 27, 2005 - UB I 9 `-" 'AZUSA, CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JUNE 27, 2005 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, CARIILO, ROCHA, HANKS, CHAGNON ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, City Manager Delach,Assistant City Manager Person, City Treasurer Hamilton, Assistant Director Electric Operations Ramirez, Director of Utilities Hsu,Assistant to the Utilities Director Kalscheuer,Assistant Director of Resource Management Tang,Assistant Director of Water Operations Anderson, Assistant Director of Customer Care and Solutions Vanca, Senior Electric Engineer Langit, Office Specialist Cawte, City Clerk Mendoza, Senior Office Specialist Hernandez. Public Participation ' Pub Part None None. The CONSENT CALENDAR consisting of Items H- A through H-E, were approved by motion of Consent Cal Board Member Rocha, seconded by Board Member Hardison and unanimously carried. Approved A. The Minutes of the regular meeting of May 23, 2005, were approved as written. Min Appvd B. Authorization was given to waive formal bidding requirements to purchase three additional Pro-Tainer 20-cubicyard compartmentalized recycling containers and to issue a purchase order to Pro- Recycling Tainer, Inc. in the amount of $15,000. Containers C. Approval was given for additional payment of$4,375 to John T. Malloy for extra costs due to John T. additional work on Project W-194, Cypress Street Water Main Replacements. Malloy D. Notice of Completion, Project W-195, for the destruction of three water wells from Layne Ntc Compl Christensen Company was accepted, and the City Clerk's Office was directed to execute the Layne Chris- '— Notice of Completion, and have same recorded at Office of Los Angeles County Recorder. tensen Co E. Notice of Completion, Capital Improvement Project W-194, Cypress Street Water Main Ntc Comp! Replacements from John T. Malloy, Inc., was accepted, and the City Clerk's Office was John Malloy directed to execute Notice of Completion, and have same recorded at Office of Los Angeles County Recorder. Scheduled Items Sched Items Assistant to the Utilities Director Kalscheuer gave an update on Access Broadband which Broadband proposed to offer internet services in Azusa using Broadband Over Powerline (BPL)Technologies. Over Utilities Department helped Access Broadband explore the possibility of offering internet services Powerline for over the electric distribution system to Azusa residents and businesses. He stated the main Internet purpose of the study was to determine the financial viability of a BPL Internet service offering. He Services stated that the capital and operating costs of a BPL service offering were too great given revenue projections. Other issues were also looked into, such as Access Broadband's preference for the City to enter into a joint venture or grant them an exclusive franchise; however,the City could not legally enter into a joint venture whose goal was to make profits; also, the City could not grant an exclusive franchise for telecom services pursuant to the 1996 Telecommunications Act. Question • answer session was held amongst boardmembers and Mr. Kalscheuer suggested that further analysis of BPL does not appear to be warranted at this time. Council agreed to set this project • aside for now, to see if the market conditions change in the future or the cost of technology comes down. Bankruptcy Moved by Boardmember Hanks, seconded by Boardmember Carrillo and unanimously carried to Write-off approve a request to write-off 14 pre-bankruptcy balances in amount of $96,475.74, and to authorize transfer of $92,020.74 from Electric fund balance to Electric Write-off Account and $4,455 from Water Fund Balance to Water Write-off Account. Loan for Moved by Boardmember Hardison, seconded by Boardmember Carrillo and unanimously carried vehicle to approve a Loan for Vehicle License Fee Funding Gap from Water Fund 32 to General Fund 10, license in amount of$669,790, in order to provide gap funding to the City until it receives repayment of Vehicle License Fee money borrowed by the State. Staff Reports/Communications D. Ramirez Assistant Director of Electric Operations Ramirez, addressed Boardmembers giving an update on Update on the Electric Yard Renovation Project. His updated include the electrical inspections, cooling and Electric Yard heating systems, inspections on sprinkler heads, elevator, upper part windows, landscaping, Office installation of cabling for computers and phones. He concluded by stating that it is estimated to Renovation be finished by June 30`h, and July 8th is the earliest the building will be occupied. However, by July Project 15 or 16 all permits should be in place and it can be fully occupied. Most of the moving will be done during the week end, not to interfere with regular work hours. Chairperson Chagnon asked • about the transportation department moving to L&W City Yard Offices. Utilities Director Hsu explained that renovations need to be done before the moving takes place. 06/27/05 PAGE TWO Assistant Director of Customer Care and Solutions Vanca, addressed Boardmembers giving them an update on the new Customer Information System and Interactive Voice Response System to be K. Vanca purchased from Systems & Software. She explained that this new program is currently in a Update on training/testing process, and representatives from Systems&Software will be giving pre-training Systems & during the month of July to the four people who will be working with this program. This pre- Software training will be to prepare them to attend formal training the week of July 25.Systems&Software Program is learning the current system in order to coordinate with the one they will be installing. It is estimated that by August the program should be installed and operating. Utilities Director Hsu commended all the employees involved in this project, and thanked them for postponing their vacation during this process, in order to get this new system in place. Assistant Director of Resource Management Tang, addressed Boardmembers giving an update on Power Resources. He explained that the California Independent System Operator is working at a B. Tang state level on figuring out what needs to change to make corrections to the market structure update on problems. The Energy Regulation Commission is beginning to push deregulation to competitive Power market, setting a dead line for California to do something by early 2007. Azusa and other Resources municipalities do not agree on deregulation. Southern California just created a very informal group of planners as well as resource managers, in an effort to provide meaningful input on this process. He stated that they are not sure what the outcome will be, but that it is important to give input. He also informed Boardmembers on an ongoing effort to settle litigation disputes with respect to the California Systems Operator cost allocation. In this process all California municipal cities are involved, and money is at stake.The cost is about 300 million dollars a year state wide, and the cost for Azusa is about 'h million dollars a year. Currently a settlement process is being worked on, but it has not been finalized. The new hearing with the California Regulatory Commission will start tomorrow, to which Mr.Tang will be attending. He finalized by stating that he is working on closing the budget books unofficially by next meeting. Director of Utilities Hsu, addressed Boardmembers giving an update on quarterly fuel cost adjustment for San Juan Resources. He stated that for the last three months no cost adjustment J. Hsu Fuel on electric bills have been made. A proposed adjustment for the next quarter will be an increase Cost of about 2.0%that will be applied for the billing period of July 1, this equates to about $1.00 per Adjustment month on the monthly bills for each customer, and the total of the bill includes water and sewer. He further stated that in regards to the new billing system being installed, the new changes are also being applied. Assistant Director of Resource Management Tang, addressed Boardmembers giving a Legislative &Regulatory-update. He stated that as far as the electric portion, bills are still pending. When B. Tang&C. changes occur, he will bring back an update. Assistant to the Utilities Director Kalscheuer, Kalsheuer addressed the issue recommending boardmembers approve a letter of opposition to SB411. City Legislative & Attorney Ferre, advised that in order to take action on this item, it had to be agendized with a Regulatory recommendation. He suggested to bring this item back to a future meeting with a Update recommendation.SB420 was discussed among boardmembers and staff,which states an increase in waste recovery. Kalscheuer explained that going through MRF, which is Material Recovery Facility is more costly than incinerating waste. Chairperson Chagnon requested that staff find out what other cities are opposing this bill, and if necessary, to bring back to the meeting of July 5, if action needs to be taken on this issue soon. Item Work Plan Update through 4th quarter of FY 2004-2005,was presented. No questions were brought up by Boardmembers. Wrk Plan Update 06/27/05 PAGE THREE Director of Utilities Hsu addressed Boardmembers on the annual adjustment of replacement water cost adjustment factor information item. He stated that every year Azusa makes a J. Hsu contribution based on anticipated replacement of water being used. Every year the Water Master Replacement determines how much water we will need to replace based on usage. This however, creates Water Adjust additional cost to Utilities. Factor Directors' Comments Directors Comments Mayor Chagnon invited boardmembers to attend a tour of the County Sanitation District,who will be having tours of their facilities, MRF through July and August. If anyone interested she will Chagnon forward information. comments Director of Utilities Hsu extended an invitation to Boardmembers to attend a staff workshop to be held at CalPoly Pomona on Thursday July 7, from 7a.m.-9p.m. Invite staff wkshp It was agreed among Boarmemders and staff to cancel the August Utility Board Meeting. If items need to be adopted during the month of August, by the Utility Department,they will be presented Aug Mtg at the second regular council meeting of August. Cancelled Moved by Boardmember Rocha, seconded by Boardmember Carrillo to adjourn. TIME OF ADJOURNMENT: 7:21 P.M. • Adjourn SECRETARY NEXT RESOLUTION NO. 05-056. 05/27/05 PAGE FOUR