HomeMy WebLinkAboutMinutes - March 24, 2008 - UB z �
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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