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HomeMy WebLinkAboutMinutes - March 24, 2008 - UB z � • AUS. . LIG 111 c �Afl CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, MARCH 24, 2008 — 6:32 P.M. The Utility Board Members of the City of Azusa met in regular session, at the above date and time, at Powell Elementary School, located at 1035 E. Mauna Loa Avenue, Azusa, California. Chairman Hanks called the meeting to order. 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, Director of Utilities Hsu, Director of Resource Management Tang, Assistant to the Utilities Director Kalscheuer, Assistant Director of Water Operations Anderson, Azusa Police Captain Streets, Economic Development Director Coleman, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part None. None. The CONSENT CALENDAR consisting of Items B-1 through B-8, was approved by motion of Consent Cal Board Member Macias, seconded by Board Member Carrillo and unanimously carried with the Approved exception items B-2, B-4, B-5, B-6, and B-8, which were considered under the Special Call B2, 4, 5, 6 & portion of the Agenda. 8 Spec Call 1. The Minutes of the regular meeting of February 25, 2008, were approved as written. Min Appvd 2. SPECIAL CALL ITEM. Spec Call 3. Approval was given to award the contract for Project W-245 for water main installation in Proj W-245 First, McKinley, Paramount, Roosevelt and Virginia Street, Barbara Drive, and an alley west of Miramontes Barbara Drive to Miramontes Construction, Incorporated in the amount of $485,061.50. Construction 4. SPECIAL CALL ITEM. Spec Call 5. SPECIAL CALL ITEM. Spec Call 6. SPECIAL CALL ITEM. Spec Call 7. Authorization was given for the procurement of local capacity products from Reliant Energy, Procure prod NRG, and Coral Power in fulfillment of City's resource adequacy obligations to the California Reliant Independent System Operator and to authorize the Mayor to execute the Confirmation Energy NRG Agreements. Coral Pwr 8. SPECIAL CALL ITEM. Spec Call Special Call Items Special Call Items Assistant Director of Water Operation Anderson responded to question regarding the size of water Dir Wtr mains and sewer force mains for project W-243, stating that the 2,350 LF Main is 18 inches and Operation the 465 LF of sewer force main is 6 inches. Anderson Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously carried to Proj W-243 approve the award of contract for Water Project W-243, Installation of Water Treatment Plant Ken Water Mains and Sewer Force Main in Daybreak Drive and San Gabriel Canyon Drive to Ken Thompson Thompson, Incorporated in amount of $1,580,876. Board Member Carrillo addressed items regarding professional services contracts for inspection Carrillo services questioning why SA was selected for WVF-243 over Wren &Associates as bids were the Comments same amount. Assistant Director of Water Operations Anderson responded that the project has sensitive areas and SA Associates has additional engineering background. Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously carried to Prof sys agmt approve Professional Services Agreement in amount of$21,000 to D. Wren &Associates Inc. to Wren & provide inspection services on Project W-245, Water Main Replacement in First, McKinley, Assoc Paramount, Roosevelt and Virginia Street, Barbara Drive, and an alley west of Barbara Drive. Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously carried to Prof sys agmt approve a Professional Services Agreement contract in amount of $60,000 to SA Associates to SA Associates provide inspection services on Project WVF-243, Installation of Water Treatment Plant Water Mains and Sewer Force Main in Daybreak Drive and San Gabriel Canyon Drive. Board Member Macias addressed item regarding amendment to Athens Services agreement to Macias change index date asking if there would be an increase to rate payers due to the change, and if Questions the City was obligated to grant Athens a full CPI each year. Response Assistant to the Utilities Director Kalscheuer responded that changing the index date would not Kalscheuer affect rates; rates would be calculated the same way and once agreed to by Athens would be &Hsu mailed to property owners and then presented to the city council for consideration. Director of Utilities Hsu advised that changing index date would probably benefit the customers due to the shift in timing of the adjustment. Assistant to the Utilities Director Kalscheuer stated that so long as we have contract with Athens, City is obligated to grant Athens full CPI. 03/24/08 PAGE TWO Board Member Rocha offered a Resolution entitled: A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Res. 08-C21 AMENDING AGREEMENT WITH ATHENS SERVICES TO CHANGE ANNIVERSARY DATE OF Amend Agmt CONSUMER PRICE INDEX. Athens Moved by Board Member Rocha, seconded by Board Member Carrillo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, ROCHA, HANKS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE Board Member Rocha addressed item regarding fees for new street light fixtures at the Rosedale Development questioning who would be paying the fee; staff responded that the Association would be paying the fee not the homeowners. Rocha Board Member Rocha offered a Resolution entitled: Comments A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, AMENDING THE STREET LIGHTING SCHEDULE INCLUDED IN AZUSA LIGHT &WATER'S RULES AND REGULATIONS GOVERNING ELECTRIC AND WATER SERVICES. Res. 08-C22 Moved by Board Member Rocha, seconded by Board Member Carrillo to waive further reading and Amend Street adopt. Resolution passed and adopted by the following vote of the Board Members: Light sched AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, ROCHA, HANKS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE SCHEDULED ITEMS Reduction in Replacement Water Cost Adjustment Factor. Director of Utilities Hsu addressed the item stating that Azusa has been adjusting the RWCAF every two months since it began Sched Items purchasing water at the higher cost back in July from Metropolitan Water District, but due to the increased rainfall and a rise in the water table the City stopped purchasing from MWD towards the Dir of Util end of January. The costs for January will be recovered over a two month period and the RWCAF Comments will be reduced in April and May. Moved by Board Member Macias, seconded by Board Member Gonzales and unanimously carried to authorize staff to reduce Replacement Water Cost Adjustment Factor by($0.1957) per hundred cubic feet of water effective April 1, 2008, to reflect reduced purchased water costs from the Metropolitan Water District for January and February. Reduce RWCAF Approved Approval of Resolution Amending Electric Fund Budget in Amount of$450,000 for Participation in New Lodi Development Project. Director of Utilities Hsu addressed the item stating that the project was approved at the November 2007 Utility Board Meeting; the appropriation was subject to approval of all participants in the project to sign, now need to authorize a budget amendment Dir of Util — to pay for the project. Comments 03/24/08 PAGE THREE After additional comments, Board Member Rocha offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AMENDING THE Res. 08-C23 FISCAL YEAR 2007-2008 OPERATING BUDGET FOR THE ELECTRIC UTILITY TO PAY FOR COST OF Budget PARTICIPATION IN LODI #2 PROJECT. Amend Lodi #2 Project Moved by Board Member Rocha,seconded by Board Member Carrillo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, ROCHA, HANKS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE Approval of a Short-term Loan to Azusa Land Partners (ALP) in Amount Not-to-Exceed $5 Million. City Mgr & City Manager Delach addressed the item stating that it is a short term loan, but is really an Dir of Util advance of money that the City will owe ALP for reservoirs they are building and will assist them Comments with their current cash flow needs. Director of Utilities Hsu responded to questions that the Short-Term loans may be 60-90 days, and there is no interest because it is an advance on funds the City will Loan Azusa have to pay ALP for the reservoirs they are building for the City; it will help them complete the Land Partners projects and it will also help the City. He noted the importance of the completion of the waterlines, reservoirs and pump station, etc. Moved by Board Member Rocha, seconded by Board Member Macias and unanimously carried to Loan to ALP approve a short-tern loan in amount not-to-exceed $5 million to Azusa Land Partners, and approved authorize the City Manager to execute all necessary documents. THE UTILITY BOARD CONVENED JOINTLY WITH THE AZUSA REDEVELOPMENT AGENCY AND Convene jntly CITY COUNCIL AT 7:00 P.M. TO CONSIDER THE FOLLOWING: w/CRA PUBLIC HEARING - ON LOAN FROM ELECTRIC FUND TO REDEVELOPMENT AGENCY FOR Pub Hrg PROJECT RELATED ACTIVITIES ON PORTION OF PROPERTY LOCATED AT THE NORTHWEST Loan from CORNER OF ARROW HIGHWAY AND AZUSA AVENUE. Elect fund Economic and Community Development Director Coleman addressed the Hearing stating that the B. Coleman action would authorize a loan from the Electric Fund Balance to the Agency in the amount of Comments $5,300,000 allowing the acquisition of 17525 East Arrow Highway for redevelopment purposes. The City of Azusa has submitted an application to the Los Angeles County Local Agency Formation Commission (LAFCO) for the annexation of the property. He responded to question posed that it does not include the furniture store on the corner and the balance remaining in the electric fund would be 22 million; there is an option to recall the loan if needed for an emergency. There was clarification on the resolutions that the project would be funded from electric fund balance. The Mayor/Chairman Rocha declared the Hearing open. There was no proof of publication Hrg open required for the Public Hearing. Mr. Terry Ernest addressed the Hearing stating that the property has been in escrow for two and a T. Ernest half years and he would like to close. Comments Moved by Director/Councilmember Hanks, seconded by Director Councilmember Gonzales and Hrg closed unanimously carried to close the Public Hearing. 03/24/08 PAGE FOUR Director Hanks offered a Resolution entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA REQUESTING A Res. 08-R15 LOAN FROM AZUSA LIGHT & WATER FOR PURPOSES OF THE MERGED REDEVELOPMENT Requesting PROJECT AREA. Loan from L&W Moved by Director Hanks, seconded by Director Carrillo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency Board Members: AYES: DIRECTORS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE Board Member Gonzales offered a Resolution entitled: A RESOLUTION OF THE UTILITY BOARD OF THE CITY OF AZUSA AUTHORIZING A LOAN FOR Res. 08-C24 PURPOSES OF THE MERGED REDEVELOPMENT PROJECT AREA. Authorizing Loan Moved by Board Member Gonzales, seconded by Board Member Carrillo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Utility Board Members: AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE Councilmember Hanks offered a Resolution entitled.: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING APPROPRIATION Res. 08-C25 AMENDMENTS FOR FISCAL YEAR 2007-08 PURSUANT TO SECTION 2-450 OF THE AZUSA Approving MUNICIPAL CODE. Appropriation Amendment Moved by Councilmember Hanks, seconded by Councilmember Gonzales to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE • Director Hanks offered a Resolution entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING Res. 08-R16 APPROPRIATION AMENDMENTS FOR FISCAL YEAR 2007-08 PURSUANT TO SECTION 2-450 OF Approving THE AZUSA MUNICIPAL CODE. Appropriation Amendment Moved by Director Hanks, seconded by Director Macias to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency Board Members: AYES: DIRECTORS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE THE REDEVELOPMENT AGENCY AND CITY COUNCIL ADJOURNED AND THE UTILITY BOARD CRA/Cncl MEETING CONTINUED. Adjourned 03/24/08 PAGE FIVE STAFF REPORTS/COMMUNICATIONS Staff Rpts Director of Utilities Hsu provided an update on the water shortage declaration stating that J. Hsu effective April 15t the City will revert to Phase II water conservation, and on May 1, 2008, the City Wtr shortage will revert to Phase 1 water conservation; details were provided regarding key well elevations at Update Well No. 8E. He responded to questions posed by Board Members regarding water conservation. Director of Utilities Hsu provided the Monthly Update on Water Treatment Plant Project stating WTP Update that they are about 56.11% complete. Director of Utilities Hsu provided the Quarterly Fuel Cost Adjustment for San Juan Source stating San Juan & that there is a Fuel Cost Adjustment charge of $1,761,154 which will amount to an average Pwr Res residential customer increase of about $5 per month for the next three months. Director of Utilities Hsu presented Garnet Wind Project Progress Report which included pictures of Garnet Wind the beginning Phase I of the project. Director of Resource Management Tang addressed the item Project stating that the first turbines are onsite and being erected and the interconnection agreement with Edison were filed and that part should be done by the beginning of summer. DIRECTOR'S COMMENTS Dir Cmts Moved by Board Member Carrillo, seconded by Board Member Rocha and unanimously carried to Letter to approve Letter to Representative Hilda Solis, as amended, i.e. date,Mayor Pro-Tern,thanking her H. Solis for meeting with SCPPA members regarding Green House Gases and other items. Discussion was held regarding the options for selection of the Chairperson of the Utility Board and Selection of Assistant to the Utilities Director Kalscheuer was directed to look into the matter. Chair UB Moved by Board Member Rocha, seconded by Board Member Gonzales and unanimously carried Proc for West to approve a proclamation proclaiming April 21 to April 25, 2008 as West Nile Virus and Mosquito Nile Virus And Vector Control Awareness Week. Board Member Macias noted that there is about four feet Awareness of standing water on Ninth Street east of Pasadena at a Flood Control Canal along the railroad tracks. City Manager Delach responded that they are working on getting the retention basin fully connected with the San Gabriel Valley Mosquito Abatement District. Moved by Board Member Carrillo, seconded by Board Member Gonzales and unanimously carried Letters to to approve Letters to U.S. Senators Barbara Boxer and Diane Feinstein, and U.S. Representative Congress David Dreier to request their support to secure $1 million in funding for the Water Supply Water Appro Reliability Program as part of the Fiscal Year 2009 Energy and Water Appropriations bill. Bill Moved by Board Member Carrillo, seconded by Board Member Gonzales and unanimously carried Cert of Rec to approve Proclamation to Daniel Noriega for his participation in American Idol. D. Noriega Director of Utilities Hsu announced that at the last SCPPA, Southern California Public Power Dir of Util Authority, meeting they were advised that greenhouse gas rule making passed the California Utility Comments Commission; SCPPA is urging all members conduct a grass roots campaign to get customers educated to help lobby for it. He stated that he would like to set up a large customer meeting on May 15t or May 8`" and asked Board Members to let him know what date is convenient for them. 03/24/08 PAGE SIX Board Member Carrillo provided a legislative update on a Senate Bill stating that it is pushing to Carrillo eliminate the alternative daily cover away from making the AB 939 requirements and asked if staff Comments had sent a letter with regard to this. Assistant to the Utilities Director Kalscheuer responded that they have opposed this in the past and that staff would follow up on it. Mr. Carrillo asked that a Legislative Update be placed on the next Utility Board Meeting Agenda for discussion. He stated that the San Gabriel Valley Council of Government is opposed to it and the cities are in support of the opposition. He referred to Phase I and Phase II of the drought and asked if options are still available to residents such as astro turf instead of grass. Board Member Rocha suggested that information be provided at the upcoming Azusa Beautiful program to be held at City Hall. Assistant to the Utilities Director Kalscheuer responded stating that a recycling booklet which will Kalscheuer contain information on conservation, including artificial turf and irrigation systems, etc. will be Response going out to residents soon. He also displayed and provided a refrigerator magnet with information on it regarding Athens Services saying that Athens did contributed 50% of the cost. Board Member Rocha asked about the status of the re-opening of Sierra Madre and City Manager Rocha Delach responded that it is schedule for March 31'. Mr. Rocha also expressed concern to Comments Captain Streets about school children who will be crossing Sierra Madre going to Hodge School where there are no crossing guards. Captain Streets responded stating that they will be evaluating and educating people on the driving course and officers will be available to help. CLOSED SESSION Closed Sess It was consensus of Board Members to recess to Closed Session at 7:55 p.m. to discuss the Recess following: Real Property Negotiations (Gov. Code Sec. 54956.8) AN Nome Address: 819 N. Angeleno Avenue Negotiating Parties: Federico Rios City Negotiators: City Manager Delach and Public Works Director James Makshanoff Under Negotiations: Price and Terms of Payment The Board Members reconvened at 8:08 p.m. There was no reportable action taken. Reconvened No report • It was consensus of Board Members to adjourn. Adjourn TIME OF ADJOURNMENT: 8:09 P.M. j SECRETARY NEXT RESOLUTION NO. 08-C26. 03/24/08 PAGE SEVEN