HomeMy WebLinkAboutMinutes - July 23, 2007 -UB 3.Q EE
LIGHT R 'DATE R
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, JULY 23, 2007 — 6:34 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and
time, at the Azusa Light and Water Department located at 729 N. Azusa Avenue,
Azusa, California.
Chairman Flanks called the meeting to order. Call to Order
Mr. Greg Ahern led in the Flag salute. Flag Salute
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES, CARRILO, HANKS, ROCHA
ABSENT: BOARD MEMBERS: MACIAS (entered meeting at 6:41 p.m.)
ALSO PRESENT: Also Present
City Attorney Ferre, City Manager Detach, Director of Utilities Hsu, Assistant to the Utilities
Director Kalscheuer,Assistant Director of Resource Management Tang,Assistant Director of Water
Operations Anderson, Assistant Director Customer Care and Services Vanca, Customer Care
Operations Supervisor Tapia, Field Service Supervisor McFann, Police Captain Streets, City Clerk
Mendoza, Deputy City Clerk Toscano.
Customer Service Care Operations Supervisor Tapia introduced new employee Customer Service Employee
Representative Gilbert Espinoza and Field Service Supervisor McFann introduced new employee Introductions
Meter Reader Pete Adame.
Public Participation Pub Part
Ms. Suzanne Avila of the California Resource Connection, addressed the Board Members stating S. Avila
that at the June 25th Utility Board she was directed to re-submit the budget for the Canyon California
Institute Project; she detailed the project stating that it involves a multitude of partnerships to Resource
enhance the Azusa River Wilderness Park. She introduced Jane Beesley and members of the Connection
California Conservation Corp., who were present to respond to questions.
Discussion was held between City Attorney Ferre, staff,and Board Members regarding the process Discussion to
for adding items to the agenda, as the item talked about by Ms. Avila was not agendized. Add item
Moved by Board Member Rocha, seconded by Board Member Macias and unanimously carried to Item of
find that an Item of Subsequent Need arose, regarding the consideration of the approval of the subsequent
budget for the Canyon Institute Project, and that it be added to the Scheduled Items portion of need
the Utility Board Agenda.
Mr. Scott Schmeier of the California Conservation Corp addressed the Board Members providing a S. Schmeier
brief history of the California Conservation Corp and the work they did for the City of Azusa i.e. Comments
aesthetic rock around the riverbed, planted oak trees along San Gabriel and Azusa Avenue twenty
years ago. He talked about the job opportunities for the youth with regard to the Canyon Institute
project.
Ms. Jennifer Delay of the Pomona California Conservation Corp addressed the Board Members J. Delay
talking about the recruitment of Azusa youth to work in the Canyon and the project opportunities. Comments
Mr. Dan Spangler of the Mercy Store House addressed Council regarding the preservation of the D. Spangler
Old School House on the corner of Fourth and Angeleno on the Slauson School site, noting the Comments
many works he has accomplished and how he will work with the Historical Preservation
Commission to discuss options for the building. It was suggested that the City provide him with a
letter of support to the School District at another time when it is agendized, and possibly that this
be a topic for a future joint Council/AVSD meeting.
Mr.Art Morales addressed the Board Members noting that he too is in favor of what Mr.Spangler A. Morales
is proposing and provided additional history of the Old School House. He suggested that the Comments
armory be used for an indoor exercise pool, that the Post Office be renamed as Azusa Veterans
Post Office, free swim and perhaps a donation of $6,000 - $8,000 from Light and Water.
Mr. Greg Ahern addressed the Board Members expressing concern regarding traffic problems on G. Ahern
the 210 freeway due to the opening to the 215 freeway, i.e. smog conditions and increase traffic Comments
on Huntington drive. He also talked about the need for water meter replacement.
The CONSENT CALENDAR consisting of Items B-I through B-10, was approved by motion of Consent Cal
Board Member Rocha, seconded by Board Member Gonzales and unanimously carried with the Approved
exception of items B-2, B-5, B-7, B-8 and B-10 which were considered under the Special Call
portion of the Agenda.
1. The Minutes of the regular meeting.of June 25, 2007, were approved as written. Min Appvd
2. SPECIAL CALL ITEM. Spec Call
3. Authorization was given to arrange resource adequacy capacity between the City and SDG&E Confirmation
for calendar year 2008 in partial fulfillment of City's resource adequacy obligation to Agmt
California Independent System Operator and to authorize the Mayor to execute the w/SDG&E
Confirmation Agreements.
4. Approval was given for the Transaction Services Agreement between the City and City of Transaction
Riverside for various scheduling services; the Mayor was authorized to execute the Services
agreement. Approval was also given for the Professional Services Agreement between the Agreement
City and Structure Group for power scheduling software interface ; the City Manager was
authorized to execute agreement.
07/23/07 PAGE TWO
5. SPECIAL CALL ITEM. Spec Call
6. Formal bidding procedures were waived and the purchase of MC-Lite meter reading system Pur MC-Lite
was awarded to Itron Incorporated at a cost of $16,200. Meter Rdg
7. SPECIAL CALL ITEM. Spec Call
8. SPECIAL CALL ITEM. Spec Call
9. The City Manager was authorized to suspend enforcement of hours of operation Suspend hrs
requirements included in Owner Participation Agreements (OPA's) and Conditional Use operation
Permits (CUP's) for electric load reduction purposes; and also to provide the stipulation that elect load
the City Manager can revert to current conditions in the event of valid citizen complaints. reduction pur
10. SPECIAL CALL ITEM. Spec Call
Spec Call
Special Call Items Item
Director of Utilities Hsu addressed item regarding La Tolteca Mexican Foods and recommended Elec Svs
to approve their request allowing payment for the installation of the electric service infrastructure installments
in 12 monthly installments. He detailed the history of the project and building which has been in La Tolteca
the works for about ten years, has received assistance from the city and is in the last stages of the Mexican
project. Chairperson Hanks expressed concern regarding the issue stating that he doesn't want to Foods
set precedence with regard to installments.
Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously carried to Electric Svs
approve request of La Tolteca Mexican Foods to allow 12 monthly installment payments for the Infrastructure
installation of electric service infrastructure at 429 North Azusa Avenue in amount of$8,703.83. Installments
Assistant Director Customer Care and Services Vanca responded to questions regarding the K. Vanca
outsourcing of mail-in utility payments, and bill print and mail service, noting the cost savings, Response
efficiency, process of the services being requested; she also responded to questions regarding
Speed-Pay Program.
Moved by Board Member Macias, seconded by Board Member Gonzales and unanimously carried RFP 3`d Party
to authorize the development and release of two Request For Proposals for third-party vendors to Vendors Mail
process mail-in utility payments, and bill print and mail service.
Assistant Director of Water Operations Anderson responded to question regarding the addition of C. Anderson
$100,642.76 and ten additional calendar days time extension on the expansion of the Water Comments
Treatment Plant, stating that the items were not bid because they were omitted during the design
phase of the project.
Moved by Board Member Gonzales, seconded by Board Member Rocha and unanimously carried Add'I Comp
to approve the additional $100,642.76 compensation and 10 additional calendar day time SSC Constru.
extension to the SSC Construction, Incorporated contract for Project WVF-207, Canyon Filtration WVF-207
Plant Membrane Upgrade and Expansion. Upgrade
Board Member Rocha asked that he be provided, at a later date, the average number of copies Rocha
that are made per month on the subject copy machine and that the information be sent to his Request
colleagues as well.
07/23/07 PAGE THREE
Moved by Board Member Rocha, seconded by Board Member Gonzales and unanimously carried Pur Konica
to waive formal bidding procedures and approve purchase of one Konica Minolta BizHub 600 Minolta
Digital Networkable Work Center Copier from Konica Minolta under CMAS in amount of Copier
$12,403.29, plus monthly maintenance cost of$0.06 per copy.
Director of Utilities Hsu responded to question regarding an amendment to the 2007-08 Dir of Util
operating budget stating that the subject items were purchased within the last budget but were Comments
received during this budget and funding was not available as it was not a budgeted item, so the
funding is being carried over from the 2006-07 budget.
Moved by Board Member Macias,seconded by Board Member Gonzales and unanimously carried Amend Util
to approve the amendment to the Utilities Department Fiscal Year 2007-2008 operating budget in Dept 2007-
amount of $34,259.83 to cover encumbrances carried over through contract purchase orders 08 budget
approved in Fiscal Year 2006-2007. Carry over
THE UTILITY BOARD/CITY COUNCIL RECESSED AT 7:43 P.M.AND THE AZUSA VALLEY WATER Recess AVWC
COMPANY CONVENED. THE UTILITY BOARD/CITY COUNCIL RE CONVENED AT 7:45 P.M. Reconvene
Scheduled Items Sched Items
Consideration of adoption of a budget for the Canyon Institute. Lengthy discussion was held Budget for
between Board Members, Suzanne Avila, City Attorney,Staff, California Conservation Corp. (CCC) Canyon
members, and Jane Beesley of Rivers and Mountains Conversancy regarding the budget outline for Institute
the Canyon Institute submitted by California Resource Connections, Inc. (CRC). Main topics Discussion
included that the goal of the CRC is to become self sustainable, grant seeking options, funding
sources, contract structure-the need for a contract, environmental grant funding-staff will work
with City Manager's office to identify, and amount needed at this time. Individual speakers
included Greg Ahern, Ms. Macario Flores, Scott Schmeier of CCC, and Jane Beesley who voiced
their opinion regarding the issue. Additional discussion was held and City Manager requested to
`- approve expenditure amount and have staff identify funding sources. Board Member Rocha
asked to approve $52,500 and take off the $10,000 to fund under other environmental funding
sources. Utility Director Hsu advised that they would work through the City Managers Office.
Chairman Hanks stated that he would like to find funding sources available instead of going
through the general fund. Mr. Scott Schmeier of the California Conservation Corp advised that
they would do in-kind labor, commit to clear if there's imminent fire danger, but there is a need
for light, water, and window repair.
Moved by Board Member Rocha, seconded by Board Member Macias and unanimously carried to Canyon
approve the adoption of the budget for the Canyon Institute in the amount of $52,500 on the Institute
condition that the source of funding be found and also come with a MOU much like the Budget
Chamber; City Manager Detach advised that he would try and have the agreement to be Approved
presented at the August 6, 2007 City Council meeting. Chairman Hanks added to the motion that
the City would take funding out of special funds that are directed towards environmental issues
and take the minimum amount out of general funds. City Manager Detach asked how much funds
were needed immediately and Ms.Avila advised that she would e-mail him the information; Board
Members asked that they be included as well as the City Clerks Office. City Attorney Ferre
clarified the motion as follows: to approve budget authority for$52,500, contingent on having an
MOU, on the condition that the City Manager be given the flexibility to find the appropriate
funding resources, that a MOU be developed that sets forth a contractual obligation between the
City and CRC provide the City Manager with information regarding immediate need of funding to
be released. Board Member Macias asked that part of the MOU be that the City be indemnified.
07/23/07 PAGE FOUR
The Board Member recessed at 8:38 p.m. and reconvened at 8:46 p.m. Recess
Director of Utilities Hsu presented item regarding Rate Stabilization Fund providing a history of the Discontinue
funding which began in 1997 after deregulation, by adoption of a resolution and ordinance which Rate
established the fund for stranded investments within the electric fund. The rationale of the Rate Stabilization
Stabilization Funds was to buy down the cost of power resources that would be rendered Fund
uneconomic due to the electricity industry retail competition or commonly know as deregulation.
He stated that the Stranded Investments are no longer applicable and can be transferred to
electric fund general reserves. He advised that staff is monitoring and evaluating some major
policy initiative that California legislature and regulators are currently undertaking that may have
significant impacts to the City's electric utility, i.e. the greenhouse gas reduction and accelerated
Renewable Portfolio Standard (RPS) initiatives. He responded to questions posed by Board
Member Macias regarding amount of interest and the transfer of interest, which will be co-
mingled with interest for CIP and that the funds will go into the Utility Reserve. Assistant to the
Utilities Director Kalscheuer explained why they are requesting that the Fund be repealed and the
justification for having a stranded investment fund is now obsolete; he advised that it could be
used for Green House Gas mitigation and could be shifted to electric enterprise reserve funds.
Moved by Board Member Carrillo, seconded by Board Member Rocha and unanimously carried to Rate Stblztn
make a finding to discontinue the rate stabilization fund for stranded investment within the Discontinued
electric fund; and to direct the Director of Administrative Services to coordinate necessary
accounting and investment activities to accomplish the recommended action.
Director of Utilities Hsu addressed the Utilities Department Reserve Policies advising that this is an Dir of Util
update and it was established in order to designate reserves; one reason, is to show bond Comments
agencies that the City has done a good job setting monies aside for certain operating financial
needs. Reserve categories are: Operating Reserve, Capital Reserve and Contingency Reserve.
After every fiscal year the Policy is reviewed in order.to revise if need. He noted the changes in
this year Reserves in Electric and Water Funds and stated that it will be reviewed every year.
Board Member Carrillo offered a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA SETTING CERTAIN Res. 07-C70
RESERVE POLICIES FOR THE UTILITIES DEPARTMENT. Reserve
Policy
Moved by Board Member Carrillo, seconded by Board Member Gonzales to waive further reading
and adopt. Resolution passed and adopted by the following vote of the Board Members:
AYES: BOARD MEMBERS: CARRILLO, GONZALES, MACIAS, HANKS, ROCHA
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
Assistant Director of Resource Management Tang addressed the Electric Rate Adjustment B. Tang
providing a presentation which consisted of the Updated five-year financial projections; Cost Comments
allocation studies, Proposed rate adjustment, and Potential impact to various retail customer Electric Rate
classes. Adjustment
Moved by Board Member Carrillo, seconded by Board Member Rocha and unanimously carried to Authorize
receive staff report and presentation regarding cost of service studies and proposed electric rate Final Rate
adjustments for Fiscal Year 2007-2008; and authorize staff to prepare final rate documents Docs
necessary to implement rate adjustments for Utility Board/City Council approval at its September
24 regular meeting and implement new rates commencing October 1, 2007.
07/23/07 PAGE FIVE
Staff Reports/Communications Staff Rpts
Director of Utilities Hsu addressed the Water Treatment Plant Monthly Report stating that it is WTP update
20% completed.
Director of Utilities Hsu presented the Drought Activities Report including Water Purchases Info on
Update, noting that one employee has been assigned to a full-time Water Patrol. He noted some Drought
problems with big customers, but most are conserving water; he responded to questions posed.
He stated that as of the end of July, if the water consumption doesn't show a substantial decrease
he may ask approval to go to Stage II,which requires not only conservation, but drastic cutbacks.
Board Member Carrillo suggested information i.e. native plants, brochures, websites, be put
together and given to public.
The Power Resources Division Monthly Report was presented, but no discussion was held. Pwr Res
Monthly Rpt
Directors Comments Dir Cmts
Moved by Board Member Carrillo,seconded by Board Member Gonzales and unanimously carried Proc for
that a proclamation for Korean War Veterans Armistice Day be prepared and presented on July 27, Korean War
2007, at 10:00 a.m. at City Hall. Veterans
Moved by Board Member Carrillo,seconded by Board Member Gonzales and unanimously carried Cert Mr. C's
to approve request for certificate of recognition for the first anniversary to Mr. C's Barber Shop to Barber Shop
be presented on Saturday, August 4, 2007, at noon, at Mr. C's. 1st Anniv.
Board Member Rocha requested a tile and wooden plaque be sent to Congresswoman Solis' Azusa Plaque .
office to be placed on her wall in order that Azusa is represented. Solis' Office
._..Board Member Rocha provided an update on Octavio Ramirez, stating that he is not doing very Update
well; he has been to visit him several times. Utilities Director Hsu also reported on his condition O. Ramirez
that he has not regained consciousness.
Board Member Rocha announced the following that Board Members are invited to Rocha
Duarte/Bradbury's 50th Anniversary on Friday,July 27,2007 at 5:00 p.m.at the bridge,to Christian Ancmts
Faith Center of the Valley Sixth Anniversary on Sunday, July 29th, at 10:00 a.m.
Board Member Gonzales requested an update on the Day Labors at the Edgewood Center,asked Gonzales
that the bill board sign be placed back up to refer workers to the Day Labor Site, and also asked Questions
for an update on Villa Azusa Senior Village. City Manger Delach responded that they have Day Labor
stepped up activities at the Edgewood Center and there will be an item on Closed Session on &Villa Azusa
August 6th regarding Villa Azusa.
Board Member Carrillo provided an update on the San Gabriel Valley Council of Governments Carrillo
meeting he attended stating that they have awarded grant funding to several cities to purchase Comments
property. He stated that he informed them of what Azusa is doing regarding PSA for the Canyon SGV COG
and asked that they join in the effort to reach more people.
Board Member Hanks stated that Tama Tuala is dying of stomach cancer. He also advised of an Hanks
e-mail from Myra Martinez requesting members to sign up for U.S. Mayor's Climate Protection Comments
and recommended against it.
---Discussion was held regarding a homeless person named Ramona and options available for her Discussion
and her unwillingness to seek aid. Homeless
07/23/07 PAGE SIX
CLOSED SESSION Closed Sess
It was consensus of Board Members to recess to Closed Session at 9:50 p.m. to discuss the Recess
following:
REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Real Prop
Address: 1900 N. San Gabriel Canyon Road, Azusa, CA 91702 Neg
Agency Negotiators: Assistant Director Water Operations-Anderson 1900 San
Negotiating Parties: Canyon View Homeowners Association Gabriel Cyn
Under Negotiation: Price and Terms of Payment for easement on Daybreak Rd
CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6) Conf w/Labor
Agency Negotiators: City Manager Delach and Assistant City Manager Person Neg. APOA
Organizations/Employee: APOA
It was consensus of Board Members to adjourn. Adjourn
TIME OF ADJOURNMENT: 11:17 P.M.
:._ / � (2-1---'-- 2
( ,_____,---( t./ • 2e-7 . .-)7`----_--
SECRETARY
NEXT RESOLUTION NO. 07-C71
07/23/07 PAGE SEVEN