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HomeMy WebLinkAboutMinutes - October 23, 2006 - UB RH' 4 'rM �t "S ....n._....h'zP.,�, c; ..�.:.z� .c's;- -�'zx. �.�_..i�_..,,,�...,..-f,. w..............a..,...4.s`sc.,.>,.. & a::......_,...ah.,.,,k. ..-a�.,, ..:.<,.�.t... ...,.,._.:..�....,�z..:<.a �ss ._.«..� « 'AZUSA, CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD MONDAY, OCTOBER 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 Conference Room located at 729 N. Azusa Avenue, California. Chairperson Chagnon called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: BOARDMEMBERS: CARRILLO, ROCHA, CHAGNON ABSENT: BOARDMEMBERS: HARDISON, HANKS ALSO PRESENT: Also Present City Attorney Ferre, City Manager Delach, Director of Utilities Hsu,Assistant City Manager Person, Assistant to the Utilities Director Kalscheuer,Assistant Director of Resource Management Tang, Assistant Director of Water Operations Anderson, Electrical Engineer Langit,Assistant Director of Customer Care and Solutions Vanca, Police Captain Streets, Assistant Director of Electric Operations Ramirez, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part Mr.Jorge Rosales addressed the Board Members thanking staff for clarification on several items, J. Rosales i.e.Water Treatment Plant Financial Plan,Water Rates FY 2008 and bid documents for Project W- Comments 238. Consent Cal The CONSENT CALENDAR consisting of items B-1 through B-11 was approved by motion of approved Board Member Rocha, seconded by Board Member Carrillo unanimously* carried. Min appvd 1. The Minutes of the regular meeting of September 25, 2006, were approved as written. Black&Veatch 2. Approval was given for the extension of Black&Veatch Engineers'design contract for Water Engr design Treatment Plant Expansion Project from October 30, 2006 to December 31, 2006. Water Project 3. Approval was given to award the contract for Water Project W-178 to J.A. Salazar W-178 J.A. construction and Supply Co. in the amount of$816,290.20, for replacement of water mains Salazar in 6th and Barbara Streets, and services in Virginia Street. 4. The Professional Service Agreement with SA Associates, Inc.to perform inspection services Inspection on Project W-178, water main replacements in 6th and Barbara Streets, and services in Svs Virginia Street, in the amount of $42,000. SA Associates 5. Approval was given for bid specifications and authorization to advertise for bids for Project Bid Specs W238,Water Main Replacements, in Cypress Street in Covina, and Sunset Avenue in West W-238 Wtr Covina. Main Replace 6. Approval was given to amend the Energy &Credit Risk Management Policy and authorize Energy & staff to exercise functions permitted by amended policy. Credit Policy 7. Authorization was given to staff to issue Request for Qualifications and Proposals for cost of RFQ/P Study service study for water rates effective July 1, 2007. Water Rates 8. Authorization was given for a donation of$100 to the East Los Angeles Skill Center for their Donation ELA First Annual Powerline Skills Rodeo. Skill Center 9. Formal bidding procedures were waived and award of the purchase of a turnkey interactive Pur Turnkey conservation program for Azusa 6th grade students to LivingWise Conservation Education LivingWise Program was approved in the amount of $37,750. Conservation 10. Authorization was given to amend the Blanket Purchase Order issued to Apple One for Amend P.O. fiscal year ending June 30, 2007 in the amount not-to-exceed $15,000. Apple One 11. Formal bidding procedures were waived and approval was given for the software Software maintenance and support contract with Sungard Bi-tech Inc. in the amount of$42,560.18. Sungard Bi- tech Special Call Items Spec Call Itms None. None Scheduled Items Sched Items Director of Utilities Hsu presented the Financing of Water Treatment Plant and other Water Dir of Utilities Facilities, stating that this is a plan to allow staff to proceed with preparation of the final Financing of documents. Mr. Hsu reported that the bond financing and details will be coming to the Board Water Members at a later date, and he reminded them of the workshop that was held on September Treatment 11"'. He stated there are projected increases but that staff will come back to the Board Members Plant and at a Public Hearing for actual rate increases, and this is in general, a plan and all the details for other Water bond purchasing, bond issuance, trustee agreement, between City and APFA, and the City of Facilities Azusa Light and Water obligations to make bond payments, will come back at a later date. Board Member Rocha requested additional information regarding the bonds and its tax exempt Rocha revenue bond status. Question Director of Utilities Hsu responded stating that Azusa Light and Water, City of Azusa, as a Dir of Utilities Government Agency, the internal revenue service will allows the issuance of bonds, the interest Response payment is exempt from State and Federal income tax. Further, because there is no tax, the interest rate is lower than taxable bonds, the revenue bonds means that repayment will be supported by the revenue from water sales, not from general tax obligation; payment will come strictly from the water sales revenue and the rate increases are to make sure there is sufficient revenue coming in to pay for the bonds. 10/23/06 PAGE TWO Board Member Rocha offered a Resolution entitled: A RESOLUTION OF THE UTILITY BOARD AND CITY COUNCIL OF THE CITY OF AZUSA, Res. 06-C101 APPROVING THE FINANCIAL PLAN FOR THE NEW WATER TREATMENT PLANT AND OTHER Financial Plan WATER FACILITIES. Water Treatment Moved by Board Member Rocha, seconded by Board Member Carrillo to waive further reading Plant and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: CARRILLO, ROCHA, CHAGNON NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: HARDISON, HANKS Director of Utilities Hsu presented item regarding the repair work to install a permanent Dir of Utilities underground electric system at 600 West Gladstone Street, stating that last week there was an Comments outage in the mobile home park at subject address,and an underground cable was installed many Emergency years ago, in those days the cable was buried, and it cannot be repaired. The cost is estimated at underground $50,000. When the new cable is put in it will be put into a pipe. Cable Moved by Board Member Rocha, seconded by Board Member Chagnon and unanimously* Grant Urgent carried to authorize the City Manager or Director of Utilities to award a contract for urgent Electrical electrical repair work at 600 West Gladstone Street pursuant to Azusa Municipal Code (AMC) repair work Section 2-523(a). approved Staff Reports/Communications Staff Rpts The Power Resources Monthly Update was presented and was received and filed and not Power discussed. Resources Assistant Director of Resource Management Tang presented the Legislative Report and gave an B. Tang overview of Bills that will have impact over Utilities operations as follows: SB 1- Mandates all Legislative Utilities in California to dedicate approximately $3 Billion over the next ten years, trying to Report promote distributed solar programs and the City's share is $3 million over a 10-year period for the program. The goal is that at the end of the ten years it will be self sustained. This fiscal year Azusa has dedicated $75,000 to solar programs. AB 32-the Greenhouse Gas Reduction, the intent is to reduce the GHG (green house gases) to the level that existed in 1990, it will require 25%reduction in the next 15 years. All rules and regulations will be worked out in the next couple of years. The San Juan Power Plant is addressing one of the green house gases, but not all of them. SB 1368 -All Utilities will be mandated to procure power resources that are clean, but there will be no immediate impacts since the requirements apply to new contracts. SB 107-the previous legislation, SB 1078, passed 2002 mandated all Utilities to have 20%of energy coming from renewables by 2017. The time frame has been shortened by 7 years; the Bill requires that they achieve 20%by 2010. Currently the City has about 9%in renewable resources;there are not many existing renewables around these days,he explained why and responded to questions. AB 2021 -This deals with efficiency programs and mandates California Energy Commission identifies specific energy efficiency programs that are cost effective for implementation by municipalities. 10/23/06 PAGE THREE Assistant to the Utilities Director Kalscheuer provided a follow up report regarding AB 939 C. Kalscheuer compliance with regard to Rosedale Tonnage. He stated that on October 2,2006,he notified the Update Office of the Assistance of the State Waste Board and informed them that the Utility Board was Rosedale concerned about how they were interpreting compliance regulations, to possibly not allow the Tonnage and City to exclude the Rosedale tonnage. He also reported that on October 19th he attended a AB 939 meeting of the Los Angeles County Integrated Waste Management Task Force and brought it to Rules the attention of some members that there may be some flaws in the regulations that don't allow .—the City to exclude this type of waste in Azusa's situation. A member of the Waste Board was present at the meeting, and advised that he would work with the City in trying to exclude that waste; similar on how they excluded waste generated by Federal Facilities, the armory and some schools. Mr. Kalscheuer advised that he is looking forward to working with them on that issue, and because it's a two year review process when the City submits the report it will not be until 2008 or 09, before the actual Waste Board will review Azusa's report for 2005 and that staff will work with State staff at this time and follow-up later with the Board later. He also stated that last week he learned that on October 17th the Waste Board approved Azusa's compliance for the years 2003, and 2004, recognizing that the City diverted 51% in 2003 and 55% in 2004; the biennial review was found to be in compliance for those years. Director of Utilities Hsu addressed the Board expressing the need to coordinate pavement project Discussion re: from Public Works with Light and Water waterline projects. He stated that once a public works Coordination project gets approved, it's about a year lead time in order for Light and Water and water line Of Pavement project coordination. He stated that pavement management program lead time is much shorter Management and there is a need to obtain a consulting engineer for water line project, among other things. work and Chairperson Chagnon explained that with all pavement work staff is working on underground Water Line work that needs to be done i.e. repair of sewer pipes,water pipes and/or electrical pipes and she Projects asked with regard to the five year pavement management plan, if they can do advance planning, i.e.get bids out and approved, etc. City Manager Delach responded that yes that was possible although they wouldn't want the street to remain in disrepair too long and timing is essential. City Attorney Ferre added that they may not want to do things too far in advance due to possible changes in Engineers estimates. Director of Utilities Hsu noted that there are some pavement contractors that also do pipeline work. Director of Utilities Hsu announced that the Azusa Light and Water Key Accounts Breakfast Dir of Util Meeting will be held on November 2, 2006, at 8:00 a.m. at the Azusa Woman's Club and Key Accounts. invitations have already been sent out to large commercial and industrial customers as well as the Breakfast top thirty water customers; he asked Board Members to RSVP in order to get a head count. Director's Comments Dir Cmts None. None It was consensus of the Board Members to recess to Closed Session at 7:06 p.m., to discuss the Closed Sess following: Recess CONFERENCE WITH LEGAL COUNSEL– EXISTING LITIGATION Conf w/legal Government Code Section 54956.9(a) Cnsl SDG&E SDG&E v. Anaheim, Azusa, et al. v. Anaheim, Case 2:06-CV-00592 Azusa CONFERENCE WITH LEGAL COUNSEL– EXISTING LITIGATION Conf w/legal Government Code Section 54956.9(a) Cnsl PG&E, PG&E, SCE et al. v. Anaheim,Azusa, et al. SCE et al. v. Case 2:06-CV00559 Anaheim, Azusa, et al 10/23/06 PAGE FOUR The Utility Board Member reconvened from Closed Session at 7:41 p.m.,there was no reportable Reconvened action taken. No Reports Moved by Board Member Carrillo,seconded by Board Member Rocha and unanimously carried to Adjourn adjourn. TIME OF ADJOURNMENT: 7:42 P.M. 1 SECRETARY Next Resolution No. 06-C102. * indicates Hardison and Hanks absent 10/23/06 PAGE FIVE