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HomeMy WebLinkAboutMinutes - June 26, 2006 - UB ce© _ -� Tj q pa�� ,- g' z r,: ' `"`" ��i' a 3 ,y 4 +010 '.: r LISA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD MONDAY, JUNE 26, 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 Conference Room located at 729 N. Azusa Avenue, California. Vice Chairperson Hardison called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: BOARDMEMBERS: HARDISON, CARRILLO, HANKS, ROCHA L_ ABSENT: BOARDMEMBERS: CHAGNON ALSO PRESENT: Also Present City Attorney Ferre, Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang,Assistant Director of Water Operations Anderson, Distribution Supervisor Kjar, Electrical Engineer Langit, Business Development/Public Benefits Coordinator Reid, City Manager Delach, Assistant City Manager Person, Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part Mr.Jorge Rosales addressed the Board Members referring to the minutes of the last meeting and J. Rosales a project that he stated was in violation of State Law because it wasn't advertised properly. He Comments stated that since then he has received documentation that proves that the project was in violation. He stated that he will be submitting a letter regarding the issue. He also addressed items B-6, 7, 8, 9, all in connection with professional services, stating that he thinks that they are being awarded in violation of State Law and the Azusa Municipal Code; further that any project over the amount of $10,000, is to be competitively awarded. Vice Chairperson Hardison asked if he had ever brought the issue to the Director of Utilities of the Hardison City Manager and he replied yes he had, but they had not responded to his concerns. He asked Comments that he receive a written response regarding the current issues. Mr. Hardison requested that Mr. `- Rosales receive a response in writing and that the Board Members receive a copy of the response also. The CONSENT CALENDAR consisting of items B-1 through B-12 was approved by motion of Consent Cal Board Member Hanks, seconded by Board Member Carrillo unanimously* carried with the B-1 - B-12 exception of items B-3, which were considered under the Special Call portion of the Agenda. approved Board Member Rocha abstained from the Minutes of the May 22, 2006 meeting as he was not B-3 Spec Call present. 1. The Minutes of the regular meeting of May 22, 2006, were approved as written. Min appvd 2. The Minutes of the special meeting of May 30, 2006, were approved as written. Min appvd 3. SPECIAL CALL ITEM. Spec Call 4. The Mayor was authorized to (a) execute Novation Agreement among DETM, Barclay Bank Novation PLC, and the City; and (b) execute the EEI Master Power Purchase and Sale Agreement Agmt between Barclays Bank PLC and the City with regard to the Agreement to replace Duke Energy contracts. 5. The update on the Utilities Department Reserve Policies was presented. The Board Util Dept Members reviewed and approved the updated electric and water utilities financial reserves. Reserve Pol 6. The additional reimbursable compensation to Wren &Associates was approved in the Wren &Assoc amount of $70,000 for continuing inspections on Rosedale Pipeline Installation. Reimb comp 7. Professional Services contract with Civiltec Engineering for Project W-237 was REMOVED Prof Svs FROM THE AGENDA. REMOVED 8. Professional Services contract with Civiltec Engineering for Rosedale Inspection Services was Prof Svs REMOVED FROM THE AGENDA. REMOVED 9. Approval was given for an extension of Black&Veatch Engineer's design contract for Water Black& Treatment Plant Expansion project from April 11, 2006 to October 30, 2006. Veatch 10. Notice of Completion for Water Main Installation, Project WI 99 was approved, the project NOC W-199 was accepted as complete from Robert Brkich Construction Corporation and the City Clerk's Brkich Constr. Office was directed to have Notice of Completion executed and have same recorded at the Office of the Los Angeles County Registrar- Recorder. 11. Agreement with Cemex for temporary waterline was approved.at its own expense, a Agmt Cemex temporary 12 inch waterline across Northrop Grumman parking lot to carry water to west Temp wtrin end of Azusa Light &Water water system. 12. Approval was given for a License Agreement with Northrop Grumman to allow the city Agmt temporary use of a portion of its south parking lot for placement of temporary 12-inch Northrop waterline. Grumman Special Call Items Spec Call Itms Board Member Hanks addressed item regarding the Grant of Easement from Indvest, L.P. asking Hanks if this was the standard utility easement size. Staff responded,yes, and that it provides for the Question re: unrestricted utility easement access. City Attorney Ferre directed his attention to the Grant of Grant of Permanent Easement document where it notes: "Together with all necessary and convenient Easement means of ingress and egress to and from said right-of-way or strip, etc." 06/26/06 PAGE TWO Board Member Hanks offered a Resolution entitled: A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING A Res. 06-050 CERTAIN GRANT OF EASEMENT AND DIRECTING THE NOTARIZE THEREOF. (Indvest, L.P.) Grant of Easement Moved by Board Member Hanks, seconded by Board Member Carrillo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: HARDISON, CARRILLO, ROCHA, HANKS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: CHAGNON City Manager Delach provided comments regarding items B-6 and B-9, stating that section 2-253 City Mgr of the Azusa Municipal Code allows professional services contracts under the best interests for Comments the City, not to go through the RFP services, the City Management makes that determination, Re: items these were extensions or amendments to prior contracts and therefore there is no need to issue B-6 &B-9 an RFP for the service. He was advised to put that in writing and send a copy to Mr. Rosales as well as the Board Members. Scheduled Items Sched Items Assistant Director of Resource Management Tang presented the implementation of the new Solar B. Tang Partnership Program stating that the State is proposing a lot of initiatives through several different Presentation fronts, green house gas reductions, conservation and renewable energy. The State through the Solar CPUC is targeting elected distributed renewable energy and one of the major driving forces is Partnership distributed solar system; he stated that staff is also recommending to incrementally promote the Program distributed solar program to benefit customers. Funding is $75,000 and should be able to fund 10 distributors in the coming fiscal year; staff will then evaluate the program and re-evaluate it in future years. They will give a credit to customer up to $8,400 towards their system. He and Business Development/Public Benefits Coordinator Reid answered questions posed by Board Members regarding funding, subsides, advertising resources, process, sources of information, timeline for pay back, resources available i.e.website, contacts, etc. Paul Reid will be in charge of the Program. Moved by Board Member Hanks, seconded by Board Member Carrillo and unanimously* carried Solar to approve the new Solar Partnership Program for smaller residential photovoltaic systems Partnership beginning July 1, 2006, as outlined in the report. Program Assistant to the Utilities Director Kalscheuer addressed the Refuse Rate Adjustment stating that C. Kalscheuer each year the City adjusts the refuse collection rates pursuant to the contract terms, effective July Refuse Rate 1 and use the methodology specified in the contract which uses the CPI to adjust certain Adjustment components of the rate and disposal costs incurred by Athens over the prior year and to do a forecast. There was a CPI increase of 7.73% between January 2005 and April 2006. He stated that with regard to Single Family Barrel Customer there was a revenue deficiency of about $5,710.22, Multifamily Bin Customers there was a revenue surplus of $13,033.70 and Commercial Customers there was also a revenue surplus of$10,370.35. All revenue deficiencies and surpluses are factored into the rate adjustment, such that deficiencies are added to the rate for the upcoming year, and all surpluses are credited back to the rate payers for the upcoming year. He stated that there were two requests made, one for extraordinary cost increases of diesel fuel which increased by$0.80 per gallon above inflation since adoption of the contract, and staff is recommending that Athens be provided with a rate adjustment of $0.26 per month for residential barrel customers, $0.19 per month for residential bin customers and $0.8 per cubic yard for commercial customers to offset the cost increase of higher fuel prices. 06/26/06 PAGE THREE He talked about government fees imposed on Athen's MRF but stated that staff does not Kalscheuer recommended approval for reimbursement to Athens by the City. He and Mr. Dennis Chappetta Continued of Athens Disposal responded to questions of Board Members regarding Revenue Deficiency in Single Family Barrel Customers, Revenue Surplus in Multifamily Bin Customers, anticipation for next year, accuracy of CPI, processes for audit to control costs to regulate the profitability and discussion regarding the Evergreen Clause; Board Members asked for a report on the process. -Vice Chairperson Hardison offered a Resolution entitled: A RESOLUTION OF THE UTILITY BOARD/CIN COUNCIL OF THE CITY OF AZUSA, APPROVING Res. 06-051 THE EIGHTH AMENDMENT TO THE EXCLUSIVE FRANCHISE AGREEMENT WITH ARAKELIAN Agmt w/ ENTERPRISES TO AMEND THE SERVICE RATES AND FEES FOR THE PERIOD OF JULY 1, 2006 Arakelian THROUGH JUNE 30, 2007. 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: AYES: BOARDMEMBERS: HARDISON, CARRILLO, ROCHA, HANKS NOES: BOARDMEMBERS: NONE ABSENT: BOARDMEMBERS: CHAGNON Staff Reports/Communications Staff Rpts Assistant Director of Resource Management Tang addressed the Monthly Power Resources B. Tang Update providing information regarding the San Juan Environmental Project stating that they are Monthly Pwr making progress from getting attention from the plant owner;they are responding to SCAPPA and Resource other owners request for transparency to the process; and there is an anticipated cost decrease Update of the City's share in the amount of $700,000; the City share is now $4.3 million. Assistant Director of Resource Management Tang addressed the Quarterly Fuel Cost Adjustment B. Tang for San Juan Resource stating there was a plant outage in April and there was a,scheduled Qtrly Fuel maintenance in April which was 26%time off and there was market improvement and it's running Cost Adjust. close to 95%. Assistant Director of Resource Management Tang addressed the Annual Adjustment of B. Tang Replacement Water Cost Adjustment Factor stating that there will be adjusted to $.05 FY 2006- RWCAF 2007, effective July 1, 2006: Assistant Director of Resource Management Tang provided information regarding the California B. Tang Municipal Utilities Association (CMUA) Climate Change Policy Statement, stating that CMUA is CMUA setting out some policy direction in terms of climate change and there are many policy issues at Climate the state level that the electric utilities will have to deal with greenhouse gas reduction, energy Change conservation and renewal energy. CMUA has proactively issued a policy statement and it's up to Policy Stmt each individual member of the Association to develop a plan and stated that Azusa staff will be developing a detailed program and bring back to the Utility Board some time in the future. Assistant to the Utilities Director Kalscheuer provided background information and statistics on C. Kalscheuer the Azusa Online Exchange Web Service stating that due to low usage and a non cost effective Azusa Online service, staff is recommendation termination of the program. Exchange 06/26/06 PAGE FOUR Assistant Director of Resource Management Tang provided presented the Legislative Report first B. Tang talking about Exit Fees (SB 1554) which is now in the Assembly Utilities and Commerce Legislative Committee stating that if the bill passes it will bring relief to Rosedale resident who will not have Reports to pay Edison for past cost. He than spoke about AB 2021 regarding energy efficiency mandate, which is still being worked on. Assistant Director of Resource Management Tang the FY 2005-06 4th Quarter Work Plan Update Quarter Work stating that they have improved the look by adding large fonts and added a column that indicates Plan Update that milestones and/or tasked have been completed "%completed"and it also shows explanation of progress. Electrical Engineer Langit provided an update on Azusa Substation 2006 Improvement Project F. Langit stating that there is an upcoming project with Southern California Edison Company where they Update are sectionalizing the substation operation into two with the intention of reducing the duty of the Substation substation and improving the operation and also he talked about repairs they have made over the past twelve month and recovered the repair expenses from the City's insurance carrier. Director's Comments Dir Cmts None. None Moved by Board Member Hanks, seconded by Board Member Carrillo and unanimously* carried Adjourn to adjourn. TIME OF ADJOURNMENT: 7:23 P.M. SECRETARY Next Resolution No. 06-052. * Chairperson Chagnon absent. 06/26/06 PAGE FIVE