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HomeMy WebLinkAboutMinutes - April 23, 2007 -UB P k`m"L'aw3; z n „a sx ; AZUSA LIGHT R WATER CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, APRIL 23, 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. Chairman Hanks called the meeting to order and Mr. Rosales led in the salute to the Flag. Call to Order ROLL CALL Roll Call PRESENT: BOARD MEMBERS: GONZALES, CARRILO, MACIAS, HANKS, ROCHA ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, City Manager Delach, Assistant City Manager Person, Utilities Director Hsu, Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Assistant Director of Water Operations Anderson, Electrical Engineer Langit, Assistant Director Customer Care and Services Vanca, Police Captain Gonzales, Economic Development Director Coleman, City Treasurer Hamilton, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part Mr. Jorge Rosales addressed the Board Members regarding item B-2 and B-3, both having to do J. Rosales with the Water Main Replacement Project noting its importance, but concerned that the Comments Professional Services Agreement with Civiltec was not bid in compliance with State Law. He noted that item B-5 and B-6 had no exhibits attached. With regard to B-7, Lease Extension to the State, he questioned the urgency formerly stated for the use of the building, and lastly commended Cary Kalscheuer for items D-3 and D-4, summaries and Gantt chart. Mr.Art Morales addressed the Board Members expressing his concern regarding the methods of A. Morales billing late notices for Light and Water bills; he questioned the proposed water rate adjustment Comments and expense of dinner provided at meetings, and lastly, announced that this date is his 92 year old mother's birthday, her name is: Mrs. Georgia Silva, Barbosa, Lopez, Morales, and Garcia. The CONSENT CALENDAR consisting of Items B-1 through B-7, was approved by motion of Consent Cal Board Member Carrillo, seconded by Board Member Rocha and unanimously carried with the Approved exception of items 3, 4, and 7 which were considered under the Special Call portion of the Agenda. 1. The Minutes of the regular meeting of March 26, 2007, were approved as written. Min Appvd 2. Approval was given to award the contract for Project W-238, Water Main Replacements in DeSigio Cypress Street, Covina and Sunset Avenue, West Covina, to J. DeSigio Construction, Inc. in Wtr Main the amount of $1,581,195. W-238 3. SPECIAL CALL ITEM. Spec Call 4. SPECIAL CALL ITEM. Spec Call 5. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING Res. 07-C26 A CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDATION THEREOF. (Japhet Grant of Esmt C. Horn and Roselia Haro) Hom/Haro 6. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING Res. 07-C27 A CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDATION THEREOF. (Taylor Grant of Esmt Woodrow Incorporated) Woodrow 7. SPECIAL CALL ITEM. Spec Call Special Call Items Spec Call Items Assistant Director of Water Operations Anderson responded to questions regarding the contract C. Anderson requirements with Civiltec Engineering with regard to W-238, stating that they will make sure Response to everything is inspected i.e. soil, pressure and trench re-pavement,it is a 150 day project it will use Questions 684 man hours and they do have liability insurance. Moved by Board Member Carrillo, seconded by Board Member Macias and unanimously carried Civiltec Engr to award Professional Services Agreement to Civiltec Engineering Incorporated for inspection Inspection services on Project W-238, Water Main Replacements, in the amount of $58,208. Svs W-238 Utilities Director Hsu responded to questions regarding surplus vehicles, stating that they are Utilities Dir given to the purchasing department for disposition and the revenue will go into vehicle Response replacement fund. Moved by Board Member Carrillo, seconded by Board Member Macias and unanimously carried Purchase two to waive formal bidding procedures and approve purchase two Ford F-150 Pickup Trucks from Trucks CMAS Downtown Ford Sales under the California Multiple Award Schedule in the amount of$30,964.83. Utilities Director Hsu responded to questions regarding the Lease Extension with the State,stating Utilities Dir that the contract calls for notification by a certain date that the City wished to terminate the lease; Response they have found a site but cannot move in at this time and have requested an extension of the lease. Moved by Board Member Carrillo, seconded by Board Member Macias and unanimously carried State of Ca to approve a four-month extension of office lease with the State of California at Light &Water Lease Agmt facility and authorization was given to the City Manager to execute Lease Agreement amendment Amend after City Attorney's approval. 04/23/07 PAGE TWO Scheduled Items Sched Items Utilities Director Hsu presented highlights of the proposed Water Rate Adjustment for Fiscal Years Utilities Dir 2007-2008 and 2009-2010. He presented the Cost-of-Service Study for Municipal Water Rates Water Rate -- prepared by Foresight Consulting Services, noting the need to comply with Proposition 218 Adjustment requirements and recent court cases. He noted the need for the Water Rate Adjustment is to Highlights meet debt service obligation,to make water infrastructure capital improvement requirements for water replacement,to maintain reserves and for credit rating. He stated that rate will be based on "cost to serve" respective cusiomer classes, e.g., customers with certain water meter sizes, and the proposed rate adjustment does not affect all customers in the same way. He noted the 45 day noticing requirement and assured that the Public Hearing Notice would be published in English and Spanish,with the date scheduled for June 18, 2007. He explained the Cost of Service Methodology and talked about proposed rate increases in other Districts. Lengthy discussion was held between Board Members and Staff regarding customer class groups, Discussion multiple family dwelling, condos, individuals and commercial, fiscal impact, debt service ratio, capital service programs and revenue, debt service obligations, bonding for Treatment Plan and Reservoirs, adjustment schedule, replacement without adjustment, cost of living adjustment, worse case scenarios. Moved by Board Member Carrillo, seconded by Chairman Rocha and unanimously carried to a) Accept Rpt Accept the report by Foresight Consulting Setting forth a projection of the water rate adjustments Foresight for Fiscal Years 2007-2008, and 2009-2010; and b) Authorize staff to prepare and post all Consulting& documents necessary for legally mandated public hearing scheduled for June 18, 2007. Post notices Assistant Director of Resource Management Tang addressed the Board Members presenting the B. Tang following information: The Power Resources Division currently operates efficiently from an Power operational standpoint by conducting all relevant power pre-scheduling, power accounting and Resource settlement, wholesale trading functions in house and contracts out the after-the-hour and Operations weekend operational coverage with an outside service provider, the Salt River Project, a quasi- municipal utility in Arizona. The current power operational arrangement has been very effective and successful in the past 8 years since the inception of California electric deregulation in 1998. However, due to the foreseeable changes in the electricity market structure in California caused by the California Independent System Operator(CAISO)Market Redesign and Technological Upgrade (MRTU) program slated to commence operation in early 2008 and the ever increasing need to schedule renewable resources which are intermittent in nature, (e.g., wind power resource only generates electricity when wind blows and thus requires constant monitoring and changes to power schedules) staff commenced a comprehensive review of power resource operations in the past 9-months to ensure a smooth transition to the new CAISO operational paradigm. Through the vigorous evaluation process detailed in the staff report, the staff has selected Riverside to enter into a definitive agreement to replace SRP,the existing scheduling service provider when the existing service agreement expires. To ensure smooth operational transition staff is recommending a limited service extension with SRP and a one-time service agreement with the Structure Group for software/hardware interface work with Riverside's power scheduling system. After discussion between Board Members and Staff it was moved by Board Member Carrillo, Agreements seconded by Board Member Macias and unanimously carried to approve the agreements with Salt Approved River Project,The City of Riverside, and the Structure Group for various power scheduling services as follows: 04/23/07 PAGE THREE Approve a 3-month extension of the existing Scheduling Services Agreement (Agreement) with Scheduling Salt River Project (SRP) and authorize the Mayor to execute the Agreement,conceptually approve Svs Agmt the selection of the City of Rivet side (Riverside)to replace SRP's scheduling services agreement on w/SRP October 1, 2007, and authorize staff to finalize an agreement mutually satisfactory to both parties 3 Month within the parameters set forth below, and bring back the final agreement for approval and City of approve, authorize staff to engage the services of the Structure Group to engineer, design, test Riverside and put in operation the software/hardware interfaces with the City of Riverside's power Structure scheduling system and authorize City Manager to execute the Service Agreement when it is Group finalized. Director of Utilities Hsu addressed the Board Members regarding the proposed quarterly off-site Dir of Utilities Utility Board meetings at local schools stating that there is a need to contact the principal of the Proposed schools and asked which schools the Board Members are proposing, noting that school will be Quarterly out in June for the summer and there is a need to have a custodian where ever the meeting will be Off-Site held. Moves by Board Member Rocha, seconded by Board Member Gonzales and unanimously Meetings carried that the proposed schools to be contacted be Magnolia,Murray,Valleydale and Mountain View. Mr. Hsu advised that he would report back to the Board at the May meeting. City Manager Delach addressed items regarding Senate Bill 286 explaining that when Prop 42 City Mgr created a gap in funding for fiscal year 2007-08, cities and counties will be unable to receive any Comments monies for local street and roads. Senate Bill 286 guarantees that every city will receive at least Senate Bill half of their package to spend over the next two fiscal years; the 2007-08 "gap"year and 2008- 286 09. SB 286 also provides that a city may receive up to the entire amount of its share of Prop 1B In Support funds if the ability to spend the funds is demonstrated. It is estimated that Azusa would receive Approved $1,534,612 in direct funding from Prop 1B for local transportation purposes; he recommended approval. Moved by Board Member Macias,seconded by Board Member Rocha and unanimously carried to take a stance of support for the proposed Senate Bill 286 and authorize the Mayor to send a letter of support. City Manager Delach addressed item regarding Senate Bill 964, stating that with this bill it would City Mgr prohibit any use of substantive serial communication by members of a legislative body of a local Comments agency, or by an officer, employee, consultant, or designee of the members of the local agency. Senate Bill City Attorney Ferre elaborated on the issue. Moved by Board Member Carrillo, seconded by 964 Board Member Gonzales and unanimously carried to take a stance of opposition against the Opposition proposed Senate Bill 964 and authorize the Mayor to send a letter of opposition. Approved Staff Reports/Communications Staff Rpts Director of Utilities Hsu presented the Monthly Report for the Water Treatment Plant Project WTP update stating that there are no changes and everything is on schedule. Director of Utilities Hsu presented the Monthly Power Resources Update stating that it is Power Res informational. Update Director of Utilities Hsu presented the Work Plan Update Report complete with Gantt charts Work Plan stating that suggestions had been incorporated, table of contents, larger print. Update Director of Utilities Hsu presented the Legislative Overview Update stating that there are no Legislative highlights at this time. Overview 04/23/07 PAGE FOUR Director of Utilities Hsu presented information regarding the American Public Power Association APPA Conf. Conference being held on June 23-27, in San Antonio, Texas; he asked the Board Members to San Antonio notify him if they planned to attend. Texas Director of Utilities Hsu confirmed that the next Utility Board will be held on Thursday, May 17, Next UB mtg 2007, immediately following the City Council Meeting which will be held on that date. Further, 5/17/07 the Joint Budget Workshop will be held on Tuesday, May 29, 2007. Directors Comments Dir Cmts None. None Closed Session It was consensus of the Board Members to recess to Closed Session at 8:20 p.m. to discuss the Recess to following: Clsd Sess CONFERENCE WITH LEGAL COUNSEL— EXISTING LITIGATION Gov. Code Sec. 54956.9 (a) Conf w/legal PG&E, SCE et. al. v. Anaheim, Azusa, et. al. Case No. BC 369141 Cncl The Utility Board Members reconvened at 8:38 p.m. City Attorney Ferre advised that there was no Reconvene reportable action taken in Closed Session. No Reports Moved by Board Member Gonzales, seconded by Board Member Macias and unanimously carried Adjourn to adjourn. TIME OF ADJOURNMENT: 8:39 P.M. SECRETARY NEXT RESOLUTION NO. 07-C28. • 04/23/07 PAGE FIVE