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HomeMy WebLinkAboutMinutes - January 23, 2006 - UB iorcto ZUSAL CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD MONDAY, JANUARY 23, 2006 - 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 located at 729 N. Azusa Avenue, California. Call to Order Chairperson Chagnon called the meeting to order. ROLL CALL Roll Call BOARDMEMBERS: HARDISON, CARRILLO, CHAGNON BOARDMEMBERS: HANKS, ROCHA 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 Water Operations Anderson,Assistant Director of Customer Care and Solutions Vanca, City Manager Delach, Assistant City Manager Person, Economic Development Director Coleman, Director of Human Resources Hanson, City Treasurer Hamilton, Project Manager Bruckner, City Clerk Mendoza, Deputy City Clerk Toscano. An item of subsequent need arose regarding the San Gabriel River Corridor Master Plan Item of sub- and it was moved by Board Member Hardison, seconded by Board Member Carrillo and Sequent need unanimously* carried to add the item as C-3, to the Scheduled Items portion of the SGR Corridor Agenda. Public Participation Pub Part Mr.Jorge Rosales addressed the Board Members expressing his concern regarding item B- J. Rosales 2, stating that there is a lack of bidding process and the agreements seem to always be Comments awarded to the same company. -- The CONSENT CALENDAR consisting of items B-1 through B-4 was approved by motion Consent Cal. of Board Member Hardison, seconded by Board Member Carrillo unanimously* carried Approved with the exception of items B-3 and B-4, which were considered under the Special Call B-3 &B-4 portion of the Agenda. Spec Call 1. The Minutes of the special/regular meeting of December 19, 2005, were approved as Min appvd written. Professional Services Contract with Wren and Associates for inspection services of electric Contract w/ conduit and facility installations for Rosedale Subdivision Project by Azusa Land Partners in Wren & estimation amount of $30,000 was approved. Assoc. 3. SPECIAL CALL ITEM. Spec Call 4. SPECIAL CALL ITEM. Spec Call Special Call Items Special Call Chairperson Chagnon addressed item B-3, replacement guaranty agreement with PPM Items Energy, questioning the date on the contract, December 12, 2005. Assistant Director of Chagnon Resource Management Tang responded stating that unless the replacement agreement is question disputed by the City, the effective date is the date of presentation to the City, which was December 12, 2005. Moved by Board Member Carrillo, seconded by Board Member Hardison and Agmt w/PPM unanimously* carried to authorize Mayor to execute Replacement Guaranty Agreement Windpower between City of Azusa and PPM Energy for windpower purchase agreement. Approved Chairperson Chagnon addressed item B-4, advising that staff wishes to amend the item by Chagnon deleting the second part of the recommendation, "2) execute agreement for equipment Comments removal and salvage, subject to review and approval by City Attorney". Moved by Board Member Carrillo, seconded by Board Member Hardison and Damaged unanimously* carried to declare as surplus the 4 damaged circuit breakers which were Breakers removed from the Azusa Substation,and authorize staff to dispose the damaged breakers. Surplus Scheduled Items Sched Items Assignment of Duke Energy's Wholesale Power Obligations Director of Utilities Hsu addressed the issue stating that they have been contacted by Duke Energy's Duke Energy who advised that UBS has made an additional request of Duke Energy that Wholesale may make changes which may be a financial disadvantage to Duke Energy. Duke Energy Power would like to ask for approval of the agreement at this time, but make it contingent upon Dir of Util the agreement between Duke Energy and UBS; if it is not to the City's liking, the Comments agreement will be null and void. Further, if the agreement is voided, Duke Energy would like to be allowed to negotiate directly with the City and the item will be brought back for consideration at the February 6, 2006, City Council meeting. Moved by Board Member Hardison, seconded by Board Member Carrillo and Assignment of unanimously* carried to authorize the Mayor to (a)execute the Assignment,Consent,and Duke Energy's Novation Agreement (CAN Agreement) among DEMA, UBS AG, and the City; and (b) Wholesale execute the Confirmation Letter upon the approval by the Federal Energy Regulatory Power Commission (FERC) of the transfer of power contract from DEMA to UBS AG, contingent Obligations upon the completion of the assignment, and that Duke Energy is able to work out Approved differences with UBS or authorize staff to negotiate with Duke Energy in the event the Contingent Assignment Agreement is not accepted. Upon Completion of Assignment 01/23/06 PAGE TWO Director of Utilities Hsu presented the Utilities Department Reserve Policies stating that Dir of Utilities times have changed and there are different business needs. He detailed the Water Reserve Reserve Policies, existing, proposed and difference as well as for the Electric Reserve Policies Policy. The details of the Reserve Policies can be found in the Discussion Paper included with the staff report. Moved by Board Member Hardison, seconded by Board Member Carrillo and Elec. &Wtr. unanimously* carried to approve the reserve recommendations for the electric and water Reserve Pol. utilities; and authorize staff to prepare a resolution for adoption of same at the February Approved 2006 Utility Board meeting. Director of Utilities Hsu addressed the item of subsequent need regarding the Master Dir of Utilities Planning of the San Gabriel River and a proposal of Fly Fisher Club of Orange County. Letters of They would like to allow fishing within San Gabriel reservoir and Morris reservoir and to Opposition create a live stream from Morris Dam to roughly Santa Fe Dam and this would create To Fly Fisher significant problems. Recently, word was received that the County would like to finalize Club proposal the SGR Master Plan in March. He stated that staff is recommending that the Mayor sign a letter to notify the County Supervisors that the City is opposing the proposal from the Fly Fisher Club of Orange County because there will be an adverse effect on the water supply to 6 million people in Los Angeles County. He stated that all affected agencies in the valley will be sending letters in opposition the proposals. Moved by Board Member Hardison, seconded by Board Member Carrillo and Letters of unanimously* carried to approve that letters be sent to the County Board of Supervisors Opposition and the County Director of Public Works opposing the Fly Fisher Club of Orange County's Approved proposals. Staff Reports/Communications Staff Rpts Assistant Director of Customer Care and Solutions Vanca provided an update on the K. Vanca Customer Service Information System Implementation,specifically,refund checks,budget Update billing, and collection processing; she detailed and answered questions posed by Board Cust Svs Info Members regarding shut-offs. Discussion was held regarding August and December meeting schedule and it was Schedule for consensus of the Board Members to cancel the meeting of August 28, 2006, and it was August & left flexible at the discretion of staff whether to handle Utility Board business following the December second City Council meeting in July or following the first City Council meeting in 2006 September and the meeting of December 26th was cancelled, but a Special Meeting of the Utility Board would be held following the regular meeting of the City Council on December 18, 2006. Director of Utilities Hsu addressed Legislative and Regulatory Report. He talked about Dir of Util SB 1 -Million Solar Roof Initiative, which he stated is a major solar program in southern Legislative California, he expressed concern that they may impose something on Municipal utilities Regulatory and advised that he will be going to Capitol to talk to Legislators. He addressed AB 1666 Report -CA Military Families Financial relief Act of 2005, stating that some of the National Guard or Reservist who are called to military duty have lost their regular income and are having financial hardship, and the bill calls for utilities to give them a break and allow installments, etc. He stated that staff is creating regulations to handle this matter and answered questions posed by Board Members regarding unfunded mandate and advertisement of the program. Director of Utilities Hsu provided highlights of the Energy Policy Act of 2005. Title I - Energy Policy Energy Efficiency - Energy Assistance and State Programs, energy efficient assistance, Act incentive, and rebate programs for consumers. Title II - Renewable Energy - General Provisions: authorizes various grants and incentives for renewable energy resources. He stated that details of programs will come to the Board at a later date. Monthly Power Resources Update was presented and no discussion was held. Pwr Res 01/23/06 PAGE THREE Director of Utilities Hsu presented the American Public Power Association revenue per Kilowatt Hour Kilowatt Hour Survey pointing out where Azusa stands in comparison to other cities. Survey Assistant to the Utilities Director Kalscheuer addressed the Board Members providing an C. Kalscheuer update on AB 939 via power point presentation, i.e.history and present. He stated that in Comments October the City believed it would fall short of the 50%waste diversion goal for 2004 and AB 939- that this prompted discussions with Athens on a two container automated trash collection Update system where yard waste and trash would be collected separately. Athens also advised that it could set up an organic route to collect waste from restaurants; staff estimated that these programs would cost about $307,000 annually. Staff reported that they will hire a consultant to review proposed costs based on prior Utility Board action. With a third party review pending, Athens submitted a second proposal with new a lower cost of $50,000 per year. Mr. Kalscheuer highlighted a few aspects of the proposal i.e. diversion obligation, indemnification against AB 939 fines, monitoring third party haulers, improved materials sorting, entry into the Commerce facility,and Athens request to extend the term of the existing contract. Discussion was held regarding the evergreen clause of the current agreement with Athens, independent contractors, roll off service, and the possibility of third parties hauling directly to Athens' facility. Assistant Director of Water Operations Anderson presented an update on the Water C. Anderson Treatment Plant Engineering and Design stating that they are near completion of the Comments design process and that Black &Vetch are doing a great job; he displayed plans and specifications for the Water Treatment Plant and stated that the project will bid in March. Director's Comments Dir Comment Director of Utilities Hsu advised that the recent windstorm has caused minor damage and Dir of Util single resident's outages but that employees worked the week end to address the Comments problems. He responded to questions regarding street closure at/near Azusa Ranch Market stated that the market signs were down. Chairperson Chagnon provided an update on the El Encanto dedication and asked that Chagnon staff respond to concerns expressed earlier in the meeting regarding the bidding process. Comments CLOSED SESSION Closed Sess The Utility Board Members recessed to Closed Session at 7:32 p.m. to discuss the Conf w/legal following: Counsel Claim CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Gov. Code Sec. 54956.9 (b) (3) (C). Claim by PG&E, Southern California Edison, San Diego Gas & Electric, California Electricity Oversight Board. No Reports The Utility Board Members reconvened at 7:50 p.m. and there was no reportable action. It was consensus of Utility Board Members to adjourn. Adjourn TIME OF JOURNMENT: SECRETARY v Next Resolution No. 06-C7. * Indicates Hanks and Rocha absent. 01/23/06 PAGE FOUR