HomeMy WebLinkAboutMinutes - July 23, 2001 - UBIV
AZUSA
LIGHT A WATER
AZUSA LIGHT & WATER
MINUTES OF THE UTILITY BOARD
REGULAR MEETING
MONDAY, JULY 23, 2001
6:30 p.m.
The Board of Directors of the Azusa Utility Board met in regular session at the above date and
time.
CALL TO ORDER
Ms. Madrid called the meeting to order.
ATTENDANCE
Board of Directors Present: Chagnon, Hardison, Madrid, Rocha, Stanford
Board of Directors Absent: None.
Also Present:
City Treasurer Uriel Macias, City Manager Rick Cole, Director of Utilities Joseph Hsu, General
Counsel Jeffry Ferre, Finance Director Marcie Medina, Assistant Director of Resources
Management Bob Tang, Public Information Officer Martin Quiroz, Assistant Director of
Electric Operations Dave Ramirez, Electric Engineer Federico Langit, Assistant Director of
Customer Care and Solutions Karen Vanca, Customer Service Representative 111 Rachel Tapia,
Business Development and Public Benefits Coordinator Jesse Marez, Lineman Lynn Dent,
Utility Information Systems Manager Kevin Morningstar, and Sr. Management Analyst Cary
Kalscheuer.
PUBLIC PARTICIPATION
Director of Utilities Joe Hsu introduced Assistant Director of Customer Care and Solutions
Karen Vanca and Customer Services Representative III Rachel Tapia.
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CONSENT CALENDAR
No items.
ACTION ITEMS
1. Election of Officers—Chairperson, Vice Chairperson, and Secretary
As a means of selecting officers, General Counsel Jeff Ferre advised Directors to make
motion(s) nominating officers, that another Director second the motion, and then the full
Board vote on the nominee(s).
Moved by Ms. Madrid, seconded by Mr. Rocha, to nominate Ms. Chagnon to be the Board's
Chairperson. Another nomination was made by Mr. Hardison, seconded by Mr. Stanford, to
nominate Mr. Stanford to be the Board's Chairperson.
Motion for Mr. Stanford was voted as follows:
AYES: Hardison, Stanford
NOES: Madrid, Chagnon, Rocha
Motion for Ms. Chagnon was voted as follows:
AYES: Madrid, Chagnon, Rocha
NOES: Hardison, Stanford
Ms. Chagnon was elected as Chairperson.
Moved by Mr. Hardison, seconded by Mr. Stanford, to nominate Mr. Stanford to be the
Board's Vice Chairperson. Motion passed by following votes:
AYES: Chagnon, Hardison, Rocha, Stanford
NOES: Madrid
Mr. Stanford was elected as Vice Chairperson.
Executive Advisor Mr. Rick Cole recommended that in the spirit of support for the newly
elected officers, it is customary that the Board re -cast their vote as "unanimous." Moved by
Mr. Stanford, seconded by Mr. Hardison, that vote for Chairperson be unanimous. Motion
passed by following votes:
AYES: Chagnon, Hardison, Madrid, Rocha, Stanford
NOES:
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Moved by Chairperson Chagnon, seconded by Ms. Madrid, that vote for Vice Chairperson be
unanimous. Motion passed by following vote of Board Members:
AYES: Chagnon, Hardison, Madrid, Rocha, Stanford
NOES:
Board discussed role of Secretary. General Counsel Jeff Ferre advised the Board that a staff
person, such as the Director of Utilities Joe Hsu, could act as Secretary. Director of Utilities
Hsu noted that Sr. Management Analyst Cary Kalscheuer was Deputized by City Clerk to act
as Deputy City Clerk for this meeting in order to take the minutes and that this action was
taken pursuant to the advice of the City Attorney Sonia Carvalho.
Ms. Madrid expressed interest in having staff serve as Secretary. Mr. Stanford expressed
preference that Secretary be a member of the Board and certify documents prepared by staff
designee. Moved by Mr. Rocha, seconded by Mr. Stanford, nomination of Mr. Hardison for
Secretary. Motion passed by following votes:
AYES: Chagnon, Hardison, Rocha, Stanford
NOES: Madrid
Mr. Hardison was elected as Secretary
Moved by Ms. Madrid, seconded by Chagnon, that vote for Secretary be unanimous. Motion
passed by following vote of Board Members:
AYES: Chagnon, Hardison, Madrid, Rocha, Stanford
NOES:
City Treasurer Uriel Macias asked the Utility Board to clarify his role with respect to Utility
Board meetings. This was not an agenda item, and Chairperson Chagnon requested that staff
put this on the agenda for the next Utility Board meeting along with following items:
• Clarify the role of City Manager as Executive Advisor or Ex Officio Member
• Clarify the role of Director of Utilities as Chief Operating Officer
• Clarify process to elect Board Members in future, not only how, but when
• How the Board will receive staff support and from whom
• Clarification of Secretary's position and role
Chairperson Chagnon also requested that a copy of the ordinance establishing Board be
provided with the next Agenda packet.
2. Technology Allowance—determine and approve the amount, term, qualified equipment,
etc.
Moved by Vice Chairperson Stanford, seconded by Hardison, that technology allowance for
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each Board Member be set at $7,200 for every two year period, beginning fiscal year 2001-
02. Motion passed by following vote of Board Members:
AYES: Chagnon, Hardison, Madrid, Rocha, Stanford
NOES:
General Counsel Jeff Ferre indicated that allowance could be used to pay electronic
equipment/device costs reasonably related to job duties of Board Members. Finance Director
Medina commented that allowance could be paid on a reimbursement basis. Secretary
Hardison clarified that a board member could elect either to purchase it and be reimbursed or
go through the city to acquire the equipment.
3. Resolution to proclaim August 2001 the Azusa Energy Conservation Month
A RESOLUTION OF THE AZUSA LIGHT & WATER UTILITY BOARD OF DIRECTORS
DEDICATING AUGUST 2001 AS ENERGY CONSERVATION MONTH.
Secretary Hardison moved, seconded Vice Chairperson Stanford, that resolution be approved.
Motion passed by following vote of Board Members:
AYES: Chagnon, Hardison, Madrid, Rocha, Stanford
NOES:
STAFF REPORT/COMMUNICATIONS
Executive Advisor Rick Cole clarified that in the future these reports will be introduced by
Director of Utilities Joe Hsu. Executive Advisor Cole reminded Board of work product of the
Utility Strategic Mission Exercise Group and urged that we focus on business development as
previously outlined by the Utility Strategic Mission Group.
Monthly Billing Report
Director of Utilities Joe Hsu provided overview of billing report and answered questions
regarding meaning of particular rate codes.
2. Power Resources Monthly Updates
Director of Utilities Joe Hsu introduced Assistant Director of Resources Management Bob
Tang who made a presentation covering the following topics: year/month power consumption
comparison, power resources budget, and current issues affecting Azusa, i,e., Federal Energy
Regulatory Commission (FERC) order.
4. Projected Operating Result of FY 00-01
Director of Utilities Joe Hsu asked the Utility Board to go to item "4" on the agenda. Hsu
reported that FY 00-01 was a good year financially for Azusa Light & Water, and that we are
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not likely to see this in the future due to regulatory changes. However, due to increased
energy costs next year, we are facing a $4 million deficit for fiscal year 2001-02; Hsu noted
half of this will be made up by a 10% increase in rates, and the other half through the rate
stabilization fund. Even with this rate adjustment, it was noted that Azusa Light & Water has
been very successful and rendered a number of benefits to the City. Executive Advisor Rick
Cole indicated that we need to look at ways to put mechanisms in place to recognize and
compensate successful employee performance.
Hsu further informed the Board that as part of the city-wide budget package that the city
council approved in June, it called for the termination of lease agreement of the Police
Building. It was noted that staff will be making necessary arrangement with LaSalle Bank to
begin the process of having the lease agreement terminated and balance paid, which will
relieve the Genera Fund of $510,000 annual lease payments.
3. Status of Public Works Reorganization
Director of Utilities Joe Hsu reported that recruitment for Public Works Director is in the
process and the position has been advertised. Hsu reported that AL&W will be going to
Board next month for budget amendment to address organizational and capital equipment
needs. Hsu reported that AL&W is also looking for state contracts to piggyback on to for
purchases of capital equipment to save time and money. The AL&W is also reviewing usage
of office space and will be issuing a Request for Qualifications to architectural firms to design
and develop a new office and employee training facilities at the yard. Full-time and part-time
positions are also under review.
5. Utility Board Policies
Director of Utilities Joe Hsu reported that staff began work on draft governance policies and
rules and was developing them in three parts. Sr. Management Analyst Cary Kalscheuer
reported that first part related to how the Board conducts its business, part two establishes
the Board's linkage to staff and how responsibility is delegated through chain -of -command;
and part three sets executive limitations on executive authority and action and may cover a
number of areas.
At the next Board meeting, the Board requested that staff provide status reports on the
following: (1) bounced check policy; and (2) undergrounding of electric utility infrastructure.
BOARD ADJOURNED AT 8:35 P.M. TO CLOSED SESSION.
AT 9:05 BOARD RECONVENED IN OPEN SESSION WITH NO ANNOUNCEMENTS.
BOARD ADJOURNED AT 9:05 P.M. TO AUGUST 27, 2001, AT 6:30 P.M.
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NEXT RESOLUTION 01-02.
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Respectfully Submitted
SECRETARY, David Hardison