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AZUSA‘
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, MARCH 27, 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 Conference Room, located at 729 N. Azusa
Avenue, Azusa, California.
Chairperson Chagnon called the meeting to order. Call to Order
ROLL CALL Roll Call
BOARD MEMBERS: HARDISON, CARRILLO, ROCHA, CHAGNON
BOARD MEMBERS: HANKS
ALSO PRESENT: Also Present
City Attorneys Ferre and Szcezepkowski, Director of Utilities Hsu, City Manager Delach,
Assistant City Manager Person,Assistant Director Electric Operations Ramirez,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, Customer Care Operations Supervisor Tapia, City Clerk Mendoza, Acting Deputy City
Clerk Hernandez.
Public Participation Pub Part
Mr.Art Morales addressed the board regarding a complaint from a utilities customer about the A. Morales
high cost for re-instating her utilities; he feels that the difference of re-connecting the same day Comments
vs.waiting an additional day, is considerably high. He requested that more information be given
to the Historical Commissioners, and specifically on the palm trees removed from the Monrovia
Nursery. He expressed his concern about the artifacts that were found buried in the same site
and asked for more information on their status.
Mr. Jorge Rosales address the board thanking Mr. Tang for the information he provided J. Rosales
regarding the San Juan Adjustment. He stated that there will be a reduction to utilities customers Comments
6__ on their utility bill next quarter; he suggested that this type of information should be provided to
the customers. He further addressed contract no. W-199 with Robert Brkich requesting
clarification on the inspection fees, and the County reimbursing the cost of this project. He
inquired about the trucks being replaced, if they are sold at auctions, where do the proceeds
from this sale go. He questioned the item regarding FY 2005-06 3rd Quarted Work Plan Update,
specifically asking clarification on certain line items; Chairperson Chagnon requested staff to
provide this information to Mr. Rosales.
The CONSENT CALENDAR consisting of Items B-1 through B-8, were approved by motion of Consent Cal
Board Member Hardison seconded by Board Member Carrillo and unanimously carried*, with Apvd B-1
the exception of item B-1 which was handled at the Special Call Portion of the agenda. Spec Call
1. SPECIAL CALL Spec Call
2. Authorization was given contract with Western Union for selected local businesses to Western
operate as payment locations to customers to pay their utility bills. Union Util
Bills
3. Authorization was given to join California Utility Exchange(CUE)operated by Equifax,and Calif Util
approval was given for a proposal by Systems &Software to do necessary programming to Exchange
connect to CUE for a cost not-to-exceed $20,000. Equifax
4. The construction contract with Robert Brkich Construction Corporation for water main Contract
installation, Project W-199, Pipeline B, in amount of $145,200, was approved. R. Brkich
5. A Notice of Completion with Electric Systems Engineering for improvement project to Ntc Compl
modify and refurbish Azusa Substation 12 kV protection relays, was approved. Elect Sys Eng
6. Authorization was given to the Mayor to execute California of Utilities Emergency Calif Util
Association's Mutual Assistance Agreement that covers electric and natural gas utilities in Emer Asso
California. Agmnt
7. Formal bidding procedure was waived, and the purchase of a Ford F650 service truck was Purchase of
awarded to Downtown Ford Sales under California Multiple Awards Schedule (CMAS) in amount Truck
of $97,799.92 including tax, delivery, and discount.
8. Formal bidding procedure was waved, and the purchase of a Ford F650 dump truck was Purchase of
awarded to Downtown Ford Sales under California Multiple Awards Schedule (CMAS) in amount Truck
of $61,309.38 including tax, delivery, and discount.
SPECIAL CALL ITEMS Spec Call
Chairperson Chagnon addressed the item regarding the Minutes of the regular meeting of Min Appvd
February 27, 2006, and requested an amendment be made to reflect a time as when
Councilmember Hanks arrived at the meeting. Moved by Councilmember Hardison, seconded
by Councilmember Carrillo and unanimously carried* to approve the minutes as amended.
SCHEDULED ITEMS Sched Items
Moved by Boardmember Rocha, seconded by Boardmember Hardison and unanimously Support SB
carried* to adopt a "support" position on SB 1554 and authorization was given to the 1554
Mayor/Chairperson to sign a letter, which will be sent to the bill authors, legislators, and
members of Senate Energy, Utilities and Communications Committee.
Moved by Boardmember Hardison,seconded by Boardmember Carrillo and unanimously carried Oppose SB
to adopt an "oppose" position on AB 2021 and authorization was given to the 2021
Mayor/Chairperson to sign a letter which will be sent to the bill author with a copy to our
legislators and members of Assembly Utilities Commerce Committees and where the bill will be
heard.
03/27/06 PAGE TWO
STAFF REPORTS/COMMUNICATIONS Staff Reports
Utilities Director Hsu addressed the board regarding the 2005-06 31d Quarter Work Plan Update Quarter Worl,
explaining that projects which are close to a dead line are subject to the developers progress of Plan
the project, which in this case city staff has no control on these dates. Chairperson Chagnon
requested that for the next quarterly report staff provide the board with a summary on projects
that have passed their due date, the reasons for the delays, and if a new completion date
scheduled.
Utilities Director Hsu addressed the board regarding the Monthly Power Resources Update,and Monthly
explained that money was set aside for the San Juan Environmental Project (SJGS) which is Power
expected to be completed in 2008; however the cost of the project has increased since first Resources
proposed. The City of Azusa is a member of SCAPPA, and Assistant Director of Resource Update
Management Tang will participate on a planned trip in May to discuss the project with SJGS
management and find out about the increase. Boardmember Rocha expressed his concern on
the increase of the project and if there is the possibility of more increases. Mr. Tang explained
that due to the magnitude of the project; and being that it started last year, the cost has been
escalating. However, there have been concerns from the SCPPA members on these increases.
This is a very important project that needs to move forward, but there are concerns that need
closer look. No money has been committed, so it is necessary to get it done in a proper
manner, setting up proper project management processes, review all the risks involved,
planning, etc.
Utilities Director Hsu addressed the board regarding the San Juan Fuel Cost Adjustment(FCA) for San Juan Fuel
2nd Quarter of 2006, stating that this is an information report that is done quarterly, and it Cost
reflects the last three months of replacement power costs incurred for the San Juan resources. Adjustment
This will reflect an adjustment of 0.42 cents per kWh on customers' electric billings for the
period April 1 through June 30, 2006.
Utilities Director Hsu addressed the board regarding the information item on the assembly bills Info on ABs
being considered; these bills are of interest to the City, and have to do with various issues.
DIRECTORS' COMMENTS Dir Comnts
Utilities Director Hsu addressed the board giving them an update on the waterline that broke on J. Hsu
Northrop Grumman property. Staff is currently working with Cemex to concur on where the Waterline
temporary line will be placed. Cemex expressed interest in purchasing a parcel of this property. damaged @
Question answer session was conducted. Director Hsu explained that the cost for either a 3`d St
temporary or a permanent line will be covered by Cemex. He further explained that the
easement that the city has on this property is too close to where the landslide occur, and for
this reason a decision has not been reached.
Utilities Director Hsu addressed the board on the Filtration plant, which is a huge project, and J. Hsu
the environmental review documents are being outlined. The first part of May it will be Filtration Plan
presented to the board for discussion, and at the end of May request for approval to go out for
bids.
THE UTILITY BOARD RECESSED AND THE CITY COUNCIL CONVENED AT 7:00 P.M. Util Recess
THE CITY COUNCIL RECESSED AND RECONVENED JOINTLY WITH THE UTILITY BOARD Cncl Convene
AT 7:10 P.M.
03/27/06 PAGE THREE
The City Council and the Utility Board recessed jointly to Closed Session at 7:11 p.m. to Cncl Convene
discuss the following items:
Joint Closed
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Session
Government Code Section 54956.9(a)
PG&E, SCE, and California Electricity Oversight Board v. Governmental
Entities including the City of Azusa
Case No. 2:06-CV-00559-MCE-KJM
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Conf w/legal
Government Code Section 54956.9(a) Counsel
SDG&E v. Governmental Entities including the City of Azusa
Case No. 2:06-CV-005-92-WBS-DAD"
PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Gov. Sec. 54957) Conf w/legal
Title: City Manager Counsel
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Gov. Code Sec. 54956.9 (a) Employee
City of Azusa v. Jessie O'Shea: Case No: 06U00264. Evaluation
REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Conf w/legal
Property Address: 100 East Foothill Blvd, Azusa, (Wimpey's) Counsel
Negotiating Parties: Mr. Wayne Fletcher and Mr. Jim Yenyo
Agency Negotiators:City Manager Delach and Assistant City Manager Person Real Prop
Under Negotiation Price and Terms of Payment Negotiations
The City Council/Utility Board reconvened at 8:06 p.m. and there was no reportable action.
It was consensus of City Council and Utility Board Members to adjourn.
TIME ADJOURNMENT: 8:06 P.M. Adjourn
SECRETARY
NEXT RESOLUTION NO. 06-C21.
* Indicated Boardmember Hanks absent.
03/27/06 PAGE FOUR