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HomeMy WebLinkAboutMinutes - September 24, 2007 -UB • Fa7 4 AZUSA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, SEPTEMBER 24, 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 Mountain View Elementary School, located at 201 N. Vernon Avenue, Azusa, California. Chairman Hanks called the meeting to order. Call to Order_ Mr. Jorge Rosales led in the Pledge to the Flag. Flag Salute 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, 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, Business Development/Public Benefits Coordinator Reid, Recreation Supervisor Gonzales, Police Captain Streets, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part Mr.Art Morales addressed the Board Members expressing concern regarding fines being imposed A. Morales on Senior Citizens and Veterans for improper care of the parkways. He asked about the process Comments for obtaining permits for a Recycling Business. Mr.Jorge Rosales addressed the Board Members expressing his appreciation to Staff Members on J. Rosales the excellent work they do. He stated that item regarding the Recycling Contest at schools is an Comments excellent program and is also in favor of the City's participation in the Lodi Project. He addressed change orders for Canyon Filtration Plant Upgrade questioning the inconsistent numerical sequence of the changes orders as well as the omissions and changes noted in the staff report. The CONSENT CALENDAR consisting of Items B-1 through B-8, was approved by motion of Consent Cal Board Member Rocha, seconded by Board Member Carrillo and unanimously carried with the Approved exception of items B-5,which was considered under the Special Call portion of the Agenda. Item B-7 was removed from the Agenda by Staff. 1. The Minutes of the regular meeting of July 23, 2007, were approved as written. Min Appvd 2. The standards set forth in the Rocky Mountain Institute report to reduce energy demand as Adopted required by Assembly Bill 2021 through energy efficient conversation programs, were Standards adopted. Rocky Mntn 3. Authorization was given for the purchase agreement of resource adequacy capacity from Purchase & Pasadena for calendar year 2008 in partial fulfillment of City's resource adequacy obligations Confirmation to the California Independent System Operator (CAISO) and the Mayor was authorized to Agmt execute the Confirmation Agreement with Pasadena. Pasadena 4. Authorization was given for an amendment to the FY 2007-08 operating budget for the Budget Systems and Software project final payments for the Interactive Voice Response (IVR) with Amend English and Spanish script and Outbound Dial, Call Recording, and Backflow Device IVR conversion in amount of $63,400. 5. SPECIAL CALL ITEM. Spec Call 6. Approval was given to award cash prizes totaling $1,000 for a recycling contest amongst Cash Prizes schools within the Azusa Unified School District to encourage recycling by students. Recycling 7. Item regarding the RFP to evaluate the collection cost portion of the refuse service rates to Removed validate cost of service principle consistent with Prop 218, was REMOVED FROM THE From AGENDA. Agenda 8. Approval was given for Change Orders Nos.4, 5, 7, &8 for the addition of$164,975.54 and Chang Orders 14 additional calendar days time extension to the SSC Construction, Incorporated contract for SSC Constrct. construction of Project WVF-207, Canyon Filtration Plant Membrane Treatment Upgrade and Expansion. Special Call Items Spec Call Board Member Rocha addressed the process of mail-in utility payments and asked about cut off Rocha time and late fees for reconnection of service and how it's handled. Director of Utilities Hsu Comments responded stating that for same day service payment should be made by 3:00 p.m. to reconnect by 5:30 p.m. and next day reconnect service is less expensive; payment will be taken up before 5:30 p.m. Moved by Board Member Rocha,seconded by Board Member Carrillo and unanimously carried to RT Lawrence award a three-year contract to R T Lawrence Corporation to process mail-in utility payments and. Corp. Mail in authorization was given to the Director of Utilities to sign the Professional Services Agreement. Payments THE UTILITY BOARD/CITY COUNCIL RECESSED AT 6:48 P.M.AND THE AZUSA VALLEY WATER COMPANY CONVENED. THE UTILITY BOARD/CITY COUNCIL RE CONVENED AT 6:49 P.M. Recess AVWC Reconvene 09/24/07 PAGE TWO Scheduled Items Electric Rate Adjustment Effective October 1, 2007. Sched Items Board Member Rocha offered a Resolution entitled: Elect Rate Adj A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, TO ADOPT NEW ELECTRIC RATES EFFECTIVE OCTOBER 1, 2007. Res. 07-C80 New Elect Moved by Board Member Rocha, seconded by Board Member Carrillo to waive further reading Rates and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE Revision to Renewable Portfolio Standard and Approval of Long Term Purchase Contract with Garnet Wind, LLC. RPS &Agmt Garnet Wind Assistant Director of Resource Management Tang presented the revised Portfolio Standards and long term power purchase agreement with Garnet Wind. The Utility Board/City Council adopted B. Tang a RPS standard in May, 2003 in_ response to Senate Bill 1078, setting the target of 20% Comments consumption to be served by renewable energy by 2017, which would keep rate impact at no Garnet Wind more than 5%. The new mandate SB 107, the target is 20%but the timing to achieve it has been City Attorney accelerated by 7 years, and there may be a higher renewable target of 33%by 2020 (SB 410). He Comment stated that Staff is recommending adopting the revised renewable standards in compliance with the new law with a target rate of 20%, and are recommending that rate impact no greater than 7%. He provided information regarding Garnet Wind, located in Palm Springs and displayed existing wind farm and provided other information regarding the project and responded to question posed by Board Members regarding the twenty year term, price cap, legislation mandates, and acknowledgement of Mr. Tang for promoting this action forward. City Attorney Ferre recommended that this action be taken subject to development of final preparation of legal Council review. Moved by Board Member Macias, seconded by Board Member Carrillo and unanimously carried Renewable to adopt the revised Renewable Portfolio Standard (RPS), given the changed regulatory Portfolio environment; approve the long term power purchase contract with Garnet Wind, LLC for the Standard RPS purchase of six megawatts of wind powered electrical energy and authorized the Mayor to &agmt w/ execute the agreement, subject to development of final preparation of legal Council review. Garnet Wind Participation in the Planning and Development of New Lodi Project. Director of Utilities Hsu Dir of Util addressed the item requesting that Board Members conceptually authorize Staff to participate in New Lodi a negotiation; the project is developed by the Northern California Power Agency; a sister Project organization to SCAPPA and is being developed at an existing site that already hosts a peaking power plant in Lodi. City Attorney Ferre reminded Board Members that it is "conceptual" only and will be considered for approval in November. Moved by Board Member Gonzales,seconded by Board Member Macias and unanimously carried Conceptual to conceptually approve the City's participation in planning and development activities in the new Approval Lodi Project; and to authorize staff to negotiate and finalize the Lodi Project planning and Participation development agreement with Northern California Power Agency and prepare documentation to Lodi Project effectuate the City's participation in the Project for Utility Board/City Council approval on its meeting in November 2007. 09/24/07 PAGE THREE Adjustment of Replacement Water Cost Adjustment Factor. Director of Utilities Hsu advised that Adjustment because of shortage of water there is a need to purchase water from Metropolitan Water District Replacement at a higher price. This is special water for emergency only, and they are selling to Azusa and Water Covina Irrigation Water. The City has been buying from them since July and its cost is above normal replacement water. If approved, the adjustment will be effective in October and the Replacement Water Cost Adjustment Factor (RWCAF)would be reviewed at the end of November —for an adjustment effective December 1. 2007. Assistant to the Utilities Director Kalscheuer noted that residential and business customers have responded to the Phase I Drought notification and in August there was a 10% decrease in water consumption which cost 8.8%, $145,000 reduction in revenue and there is a need for an adjustment in order to recapture some of the cost. Moved by Board Member Carrillo, seconded by Board Member Rocha and unanimously carried to Inc RWCAF authorize staff to increase the Replacement Water Cost Adjustment Factor by $0.1132 per Approved hundred cubic feet of water to recover the increased cost of purchasing water from the Metropolitan Water District. Staff Reports/Communications Staff Rpts Assistant Director of Water Operations Anderson provided the Monthly Update on the Water C. Anderson Treatment Plant Project, with a power point presentation, detailing the Projects Objectives, the Update Wtr Major Components, the Site Plan, the bidding process, photographs of the projects progress, and Treatment the specified completion in Fall 2008. Director of Utilities Hsu invited Board Members to take a Plant tour of the site. The Monthly Power Resources Update was presented, but no discussion was held. Pwr Rsr Updt Director of Utilities Hsu addressed the Quarterly Fuel Cost Adjustment for San Juan Resource, Fuel Cost stating that although the report notes there are credits,staffs recommendation is that by Spring of Adjustment —2008, San Juan will be out of service due to maintenance, and during those months there will be a need to purchase power, so it is recommended to keep the credit for increased power cost. Assistant Director of Resource Management Tang presented the 2008 Annual Resource Adequacy Annual Plan which needs to be submitted to the California Independent System Operator (CAISO) by no Resource later than September 30th of each year, where the City has to show for every single month of the Adequacy year that it has enough power to serve customers and contingency above and beyond the need. Plan He stated that the updated plan will be posted on the City's website. Director of Utilities Hsu presented the Water Supply Update, stating that at the next City Council Water Supply meeting staff will be presenting an Urgency Ordinance for adoption which will amend the current Update drought ordinance with regard to phases two and three Water Conservation Program, of the existing ordinance. It needs to be implemented right away in the event the City needs to go to Phase II or Phase Ill. He talked about the groundwater supply that needs to be replenished; the average water levels are dropping two to three inches per week, and the lack of enough rainfall this winter. He advised that he will be meeting with the fifty largest water users in the City in order to work out a water conservation plan. He talked about the need to put a program in place to address Drought issue. Director of Utilities presented the Power Outage Report during the recent Heat Wave stating that Power there were four transformers out,fifty companies were impacted,one transformer went out twice, Outage there were five outages, five incidents and four transformers were replaced; he recognized his Report —employees for addressing the outages immediately, working late hours and restoring the power. 09/24/07 PAGE FOUR Director of Utilities Hsu presented the Refuse Rate Survey, detailing the report and providing it Refuse Rate to the Board Members for their information. Study Director of Utilities Hsu announced that on August 22,2007, Light and Water staff held a strategic Strategic planning meeting offsite and this year included the City Manager. He provided the list of Goals Planning Mtg for the department as information to the Board Members. Director of Utilities Hsu announced that there will be a workshop on Electric Power Resources Elect Pwr Res issues on November 26, 2007. Director of Utilities Hsu announced that staff is planning a workshop immediately following the Solis Waste January 28, 2008, regular Utility Board meeting to hold a workshop on solid waste management in Workshop the City. Director of Utilities Hsu requested that the regularly scheduled meeting of the Utility Board for Reschedule December be rescheduled to be held in conjunction with the second Council Meeting of 12/24 mtg December 17`h. Board Members concurred with the request. To 12/17 He invited all to the Breakfast Meeting on Water Shortage Issues with Large Water Customers Mtg w/large on October 4, 2007, at 8:00 a.m. at the Azusa Woman's Club. Wtr Cust. Directors Comments Dir Cmts None None CLOSED SESSION Closed Sess It was consensus of Board Members to recess to Closed Session at 7:39 p.m. to discuss the Recess following: CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION Conf w/Legal Government Code Section 54956.9(a) Cncl SDG&E SDG&E v. Anaheim, Azusa, et al. v. Anaheim, Case 2:06-CV-00592 Azusa, et al. The Board Members reconvened at 7:48 p.m. There was no reportable action taken. Reconvened No Action It was consensus of Board Members to adjourn. Adjourn TIME OF ADJOURNMENT: 7:49 P.M. SECRETARY NEXT RESOLUTION NO. 07-C81 09/24/07 PAGE FIVE