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HomeMy WebLinkAboutMinutes - January 22, 2007 -UB e �-aas � �' `�F`,c ma:�c�'1' Fae� *�, `--;z�sf� "�'.:tea,> o'•^x;*sP' tw^ ✓T . 7LIS* r,,,k-R,°,- :',, �' tIGHT . WATER CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JANUARY 22, 2007 — 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., Azusa, California. Chairperson Chagnon called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: BOARD MEMBERS: HARDISON, CARRILLO, ROCHA, HANKS, CHAGNON ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, City Manager Delach, Utilities Director Hsu,Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Assistant Director of Water Operations Anderson, Electrical Engineer Langit, Director of Recreation and Family Services Jacobs, Director of Human Resources Hanson, City Treasurer Hamilton, Business Development/Public Benefits Coordinator Reid, Police Captain Streets, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part Mr.Jorge Rosales addressed the Board Members in favor of the firming Arrangement between the J. Rosales City and Arizona Public Service and encouraged the City to approve it. He also expressed that he Comments is in favor of the City procuring San Juan Outage Insurance coverage, noting that the City should not be without it, and recommended approval. He commended staff for the job well done with regard to the electrical and water systems information of the City of Azusa and the information being provided in both Spanish and English. The CONSENT CALENDAR consisting of Items B-1 through B-14, were approved by motion of Consent Cal Board Member Carrillo, seconded by Board Member Hardison and unanimously carried with the Approved exception of items B3, B-5, B-11, and B-12,which were considered under the Special Call portion of the Agenda. 1. The Minutes of the regular meeting of December 18, 2006, were approved as written. Min Appvd 2. Staff was authorized to finalize the firming arrangement for San Juan Unit #3 Firming Firming Agmt Arrangement with Arizona Public Service (APS) and the Mayor was authorized to execute the San Juan Unit agreement. 3 3. SPECIAL CALL ITEM. Spec Call 4. Authorization was given to staff to prepare and send a letter, if necessary, to California Ltr ISO Independent System Operator providing information regarding local capacity resources Capacity planning. Resources 5. SPECIAL CALL ITEM. Spec Call 6. Approval was given for the selection of Foresight Consulting Services to conduct cost of Foresight service study for water utility in amount of$35,330. Consulting 7. Approval was given for the filing of Notice of Completion for the concrete service road NOC project in Northside Park by Martinez Concrete Incorporated in amount of$65,055 and to Northside Pk authorize staff to record same with Los Angeles County Clerk. 8. Formal bidding procedures were waived and the award of purchase of one Hybrid Ford Purchase Escape to Hoblit Motors in amount of$24,565.53 was approved and also approved was a Hybrid budget amendment of account number 33-40-745-800-7135 in amount of $24,570. Escape 9. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING A CERTAIN Res. 07-C8 GRANT OF EASEMENTS AND REAL PROPERTYAND DIRECTING THE RECORDING THEREOF. Accept Grant (Grant of Reservoir Sites from Azusa Land Partners for Rosedale Development) of Esmts 10. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA MAKING A CERTAIN GRANT Res. 07-C9 OF PROPERTY AND ACCEPTANCE OF A SITE LICENSE AND DIRECTING THE RECORDING Grant & THEREOF. (Existing Nursery Reservoir Site to Azusa Land Partners (ALP) and Acceptance of Accept License for Nursery Reservoir from ALP) Site License 11. SPECIAL CALL ITEM. Spec Call 12. SPECIAL CALL ITEM. Spec Call 13. Approval was given for the Notice of Completion for the installation of permanent NOC Replace replacement underground electric conduits at 600 West Gladstone by Freeway Electric Underground Incorporated, in amount of$39,780 and staff was authorized to file same with Los Angeles conduits County Clerk. Freeway Elect 14. Approval was given for payment of$70,000 to Southern California Edison for estimated cost Pymt SCE to relocate power lines crossing the Canyon Filtration Plant Membrane Treatment Upgrade Relocate Ins and Expansion project site. WTP Special Call Items Spec Call Items Director of Utilities Hsu and Assistant Director of Resource Management Tang, responded to Questions questions posed by Board Members Rocha and Hanks regarding Outage Insurance, stating that &Answers the feasible time to wait and purchase outage Insurance coverage is before July 15`and that they are without insurance now, the replacement energy in winter months is lower and that at the beginning of last year it was quoted at $700,000, but has come down quite a bit since then. 01/22/07 PAGE TWO Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously carried to Pur outage authorize staff to procure outage insurance coverage from XL Capital/Indian Harbor Insurance ins XL Capital Company for San Juan Unit #3 when the annual insurance premium falls below $250,000 Harbor Ins Board Member Hanks addressed item regarding participation in SCPPA joint efforts on Hanks Greenhouse Gas Issues, stating that he and Board Member Carrillo had a chance to meet with Comments Assemblyman Ed Hernandez over the weekend regarding transportation issues but also talked _ about meeting to discuss greenhouse gas emissions and impacts on Azusa. Director of Utilities Hsu responded stating that on Wednesday, Southern California Public Power Authority is scheduled to meet with legislative staff in Sacramento; in the evening they will meet with the legislators, Senator Romero and Assemblyman Ed Chavez and Mr. Hsu will meet with Mr. Hernandez to talk about Azusa. Moved by Board Member Rocha,seconded by Board Member Carrillo and unanimously carried to SCPPA efforts authorize the City's participation in Southern California Public Power Authority(SCPPA)joint effort Green House to advocate and make appearances during proceedings on GHG regulation, and delegate Gases authority to the Director of Utilities to execute an agreement to effectuate such participation. Board Member Carrillo asked about the bid for project WF-226, stating that the budget is Carrillo $250,000, but the bids came in higher. Director of Utilities Hsu and Assistant Director of Water Comments Operations Anderson responded stating that the amount is an estimate;there is no way to predict how much work will be needed and the work was based on two wells; the worse case scenario. They responded to questions posed by Board Member Hardison regarding the possibility of a standby well. Mr. Hsu and Mr. Anderson noted the difficulty and high cost to build a new well and responded to other questions posed. Moved by Board Member Rocha,seconded by Board Member Carrillo and unanimously carried to Bid Award approve the bid award contract for rehabilitation of Wells Nos. 2 and 4 to General Pump Well Nos. Company in amount of$363,973.50 and authorize amendment of Capital Improvement Project 2 8.4 General budget account number 32-80-721-000-7145/72105D in amount of $114,000. Pump Co. Director of Utilities Hsu responded to question of Board Member Carrillo, stating that the blanket Hsu purchase order to General Pump Company is for service calls throughout the year. Response Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously carried to Blanket P.O. approve the addition of$75,000 to the existing blanket purchase for General Pump Company for Gnrl Pump Fiscal Year 2006-2007. Amendment (All Special Call items listed above were enacted by one motion; they are shown separately in order to clearly identify approvals.) Staff Reports/Communications Staff Rpts Director of Utilities Hsu and Assistant Director of Resource Management Tang responded to Power Res question regarding drop in cost of wholesale electricity in November and December of 06 versus update November and December of 05, stating that it was a warm winter, the gas prices went down during those months and there weren't as many hurricanes in 2006. The Monthly Power Resources Update was received and filed. Director of Utilities Hsu provided an update on Greenhouse Gas (GHG) Issues, presenting SB Dir of Util 1368 and AB 32, two bills which would impact the City. Comments 01/22/07 PAGE THREE SB 1368 requires new baseload electric generation and power contracts of five years or greater Continued duration to meet Emission Performance Standards; there are certain criteria to meet and a SB 13 68 & process to be followed before contracts can be signed,and it will be more costly and tedious. In AB 32 regard to AB 32, all power resources must reduce level of GHG to 1990 level, however, since the city has only been in control of its resources since 1993, there is a need to find a formula to determine what level of GHG emissions to set for Azusa. Director of Utilities Hsu presented the update on Scheduling Services stating that the current Dir of Utilities Power Resource Operation is with in house staff for resource planning, power scheduling, and Scheduling billing/settlement functions;they contract for outside services for after-hour operational coverage. Services He stated that there are some anticipated changes, CAISO market redesign is anticipated to begin in February 1, 2008; there will be much higher exposure to the mandatory centralized markets, and will require much more real time coverage and there is uncertainty to renew existing real time service agreement when it expires on July 1, 2007. They are participating in Southern California Public Power Authority RFP for scheduling services to consider alternatives and engaging in discussion with current service provider to renew contract. Staff is currently evaluating short listed service providers in the SCPPA RFP along with other Southern California Munis and they are concurrently talking to Salt River Project for service enhancement. Discussion was held regarding the possible hiring of additional staff for scheduling during off-hours, the bidding process, computerized technology, outside contractors and, the high cost was also noted. Director of Utilities Hsu presented Senate Bill (SB) 1037 Efficiency Report stating that Azusa Light SB 1037 &Water is among the publicly-owned utilities which submits the energy efficiency data and is in Report compliance with the provisions of the legislation. The Utility Board Billing Insert was also Utility Bill presented, but not discussed. Insert Assistant Director of Water Operations Anderson presented the Progress Report on the Water Report WTP Treatment Project stating that all the contractors and suppliers are on board and there will be a Anderson preconstruction meeting on January 25, 2007; they have come to terms with Black&Veatch on the Construction Management services,who will be at the meeting and the Procurement Contract has been signed. The progress payment request is approximately $500,000 to be paid in February 2007. Discussion was held regarding dates for the Groundbreaking Ceremony and it was decided to be on Monday, February 12, 2007, at 4:30 p.m. at the Water Treatment Plant. Director's Comments Dir Cmts Moved by Board Member Hardison, seconded by Board Member Hanks and unanimously carried Proc Rotary to authorize staff to prepare and issue a proclamation to the Rotary Club of Azusa for its 80th year Club 80th of community services. Anniversary Director of Utilities Hsu announced that California Municipal Utilities Association (CMUA) Capitol CMUA Day is on Monday, February 5th, in Sacramento. He stated if anyone wants to attend to let him Capitol Day know and he would make arrangements. Director of Utilities Hsu announced that the American Public Power Association (APPA) Legislative APPA Rally/ RallyNisit will be held in March 12-15, in Washington, D.C. He detailed the event, Reception and Visit lobbying efforts with Legislators. Director of Utilities Hsu also announced the State of the City Address which is sponsored by the State of the Chamber of Commerce will be on February 13th, at the Azusa Woman's Club and he stated that he City anncmt would like to host attendance by the Board Members. 01/22/07 PAGE FOUR Moved by Board Member Carrillo, seconded by Board Member Hardison and unanimously carried to recess to Closed Session to discuss the following: Closed Sess CONFERENCE WITH LEGAL COUNSEL— EXISTING LITIGATION Government Code Section 54956.9 (a) Conf w/Legal Peter Hoh v. City of Azusa Cncl The Board Members recessed to Closed Session at 7:28 p.m.and reconvened at 7:40 p.m. There was no reportable action taken in Closed Session. Recess Reconvened It was consensus of the Board Members to adjourn. Adjourn TIME OF ADJOURNMENT: 7:41 P.M. st SECRETARY NEXT RESOLUTION NO. 07-C10. Adjourn 01/22/07 PAGE FIVE