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HomeMy WebLinkAboutMinutes - October 26, 2009 - UB h3 '° Y'� � € ,' 4pw.. a.—. . .,.,b,..35.... i c+..�.. 5'e`3- ....5 '.<L.+..Y.d.«.....sY..-L_.v. ...., S - .._..__.._v..k..s.�Sa.a.ua-LY �`........ ......, AZUSA LIGHT R NATER CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD MONDAY,OCTOBER 26,2009—6:30 P.M. The Utility Board of the City of Azusa met in regular session,at the above date and time,at the Azusa Light and Water Conference Room, located at 729 N. Azusa Avenue,Azusa,California. Chairman Macias called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: BOARD MEMBERS: GONZALES,CARRILLO,MACIAS,HANKS,ROCHA ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre,City Manager Delach,Assistant City Manager Makshanoff,Director of Utilities Morrow, Assistant to Utilities Director Kalscheuer,Administrative Services Director-Chief Financial Officer Kreimeier, Assistant Director of Water Operations Anderson,Business Development/Public Benefits Coordinator Reid, Distribution Supervisor Kj ar,Azusa Police Captain Momot,City Clerk Mendoza,Deputy City Clerk Toscano. PUBLIC PARTICIPATION Pub Part Mr.Charles Alvarez,resident,city employee and member of the IBEW,addressed the Board Members stating C.Alvarez that he disapproves of the last proposal the City offered and is disappointed;he talked about the reliable public Comments service provided by city employees. Ms.Nancy Romero Business Representative and ChiefNegotiator of the IBEW Local 18,addressed the Board N. Romero Members stating that the group has rejected the latest proposal and requested that the Board hold a Closed Comments Session to reconsider the new proposal; she passed out a document to the Board Members. Mr.Ed Beterbide,city employee and member of the IBEW,addressed the Board Members providing a brief E.Beterbide history of his employment with the city as well as of involvement in Meet and Confer/Negotiation sessions Comments between bargaining units and administration,expressing his frustration/disappointment with the progress of the current negotiations. He talked about the health of the organization and the possibility of coming to a win-win situation with regard to negotiations. Chairman Macias advised that he would take the concerns into consideration as soon as possible and/or would Macias be agendized for the next City Council meeting. Comment UTILITIES DIRECTOR COMMENTS Dir Comments Director of Utilities Morrow addressed the Board Members providing an update on items raised at the last Morrow meeting stating that the after hour phone system had a problem and is now working properly. There have been Comments changes to address the customer who had a 35 cent bill;no late notice for any amount under$5.00 will be sent. Reminders would be friendlier than before, and envelopes have been taken out of the bill statement of customers with automatic checking account bill payment. He responded to question regarding auto withdrawals stating that he would report at the next meeting whether these customers receive an e-mail confirmation. Discussion was held regarding the Drought Update—Water Conservation Continues notice,and it was suggested that the notices include information on Phases II and III and that it be printed on a magnetized document. UTILITY BOARD MEMBER COMMENTS Brd Mbr Cmts Board Member Rocha addressed the Board Members regarding the pluses and minuses of going into Daylight Rocha Savings Time. He stated that another state,Arizona, it does not adhere to the schedule and asked if the city Comments can lobby for not going into Daylight Saving Time to save energy. Discussion was held. Director of Utilities Morrow responded stating that he would bring back information on the subject. Mr.Rocha also advised that with regard to the Spanish version of the Drought Notice,the months are not supposed to be capitalized. Board Member Hanks advised that he went to Louisiana Tech University and he presented a cylinder made of Hanks fly ash,sand, gravel,sodium hydroxide,and sodium silicate,which he passed around for inspection and talked Comments about the process of its creation and about the prior sale of fly ash into the cement market and hopes it can someday offset Portland cement. Chairman Macias thanked staff for modifying the agenda and scheduling the Directors and Board Members Macias comments at the beginning of the meeting. Comments The CONSENT CALENDAR consisting of Items D-1 through D-7, was approved by motion of Board Consent Cal Member Carrillo,seconded by Board Member Hanks and unanimously carried. D-1-7 Chairman Macias asked about the extension of time for Wren&Associates and Assistant Director of Water Macias Operations Anderson responded stating that this was for the continuing inspection of a Rosedale Development question water pipeline which is being installed by ALP;the project has been delayed while waiting for a permit from Anderson resp the railroad. 1. The minutes of the regular meeting of September 28,2009,were approved as written. Min appvd 2. Approval was given for the transfer of Interactive Voice Response(IVR)agreement from Systems and IVR Agmt to Software to First Data and the Mayor was authorized to sign agreement. Systems& Soft 3. The notice of completion for project WVF-207, Canyon Filtration Plant Membrane Upgrade and NOC Proj Expansion,was accepted and the City Clerk's Office was directed to record NOC at the Office of the Los WVF-207 Angeles County Recorder. CFP 4. The notice of completion of project W-262, Water Main Replacement in Rowland Avenue in West NOC Proj W- Covina,was accepted and the City Clerk's Office was directed to record NOC at the Office of the Los 262 Angeles County Recorder. 5. Approval was given for additional compensation to RBF Consulting,Incorporated for additional design RBF Consult engineering services for Project W-266,Pipeline Replacement,in amount of$14,478. Engr Svs 6. Approval was given for the extension of time for Wren & Associates, Incorporated for continuing Wren&Assoc inspection services for pipeline installation at Rosedale Development from June 30,2009 to December Insp Svs 31,2009. extend 10/26/09 PAGE TWO 7. Approval was given for the extension of firming agreement through 2011 for San Juan Unit#3 with Firming Agmt APS and the Mayor was authorized to sign the agreement. APS—San Juan SPECIAL CALL ITEMS Special Call None None SCHEDULED ITEMS Sched Items California Independent System Operator Corporation(CAISO)Restated Agreements with City of Azusa. CAISO Agmts Director of Utilities Morrow presented the agreements,i.e.Scheduling Coordinator Agreement,Meter Service G. Morrow Agreement for Scheduling Coordinator and the Congestion Revenue Agreement and provided information on Comments each agreement. Moved by Board Member Carrillo,seconded by Board Member Gonzales and unanimously carried to approve Agreements the Scheduling Coordinator Agreement, Meter Service Agreement for Scheduling Coordinator, and Approved Congestion Revenue Rights Entity Agreement between CAISO and the City,and the Director of Utilities was authorized to execute and administer said agreements. Electric Fund Financial Review and Possible Rate Adjustment. Electric Fund Financial Director of Utilities Morrow stated that the last rate increase was October of 2007,and the principal issue now Review&Rate was meeting the debt coverage requirements of debt service agreements;he noted that expenses for this year Adjustment would be about$42 million and revenues were forecasted to be $36 million,and the shortfall of$6 million needs to be addressed.He stated that a rate increase to close the gap could be done in two phases but that the increase needed to meet debt coverage requirement at this time is$1.6 million.To increase revenues by this amount for FY10, a 9.3% rate increase is recommended to begin by December 1, 2009. He detailed the Electric Financial Review,Rate Increase Information,Other Financial Information regarding Cash Reserves, and FY 10 Comparisons to Prior Years. Discussion was held between Board Members and Staff regarding uncollectable accounts,debt service ratio, Discussion disclosure requirements,disclosure obligations,interest income,retail revenues,rate increase options,reducing expenses, financial reports,recent`foreclosures,vacancies, commercial customers,state surcharges,Edison rates, and having discussion at a city meeting. Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously carried to adopt Adopt Reso& resolution to implement a 9.3%across-the-board increase in electric rates effective December 1,2009;and to Approve elect approve electric utility cost of service study scope of work and authorize staff to solicit proposals from Util cost of sys qualified consultants. study Board Member Rocha offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,CALIFORNIA,TO ADOPT NEW Res. 09-C95 ELECTRIC RATES EFFECTIVE DECEMBER 1,2009. New Elect Rates 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,HANKS,ROCHA NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE 10/26/09 PAGE THREE Board Member Hanks asked that the item be brought to a regular meeting and a report be presented. Staff advised that they would schedule a power point for the November 2,2009 meeting. Hanks STAFF REPORTS/COMMUNICATIONS Comment Assistant Director of Water Operations Anderson presented an update on the Basin Water Supply stating that the Canyon Basin is not in a crisis condition yet, Morris is releasing water which helps, the basin is rising Staff Rpts because the pumping has gone down; he explained the process. He stated that the main basin has bee a problem and has been low and there is no replacement water. He responded to questions posed by Board Basin Wtr Members regarding the burn area. Supply C. Anderson Business Development/Public Benefits Coordinator Reid presented the LED Technology Programs stating that this year a new Public Benefit rebate program is the LED Backlit LCD Television and Computer Monitor Rebate Program that provides a 25%rebate,up to a maximum of$750,for the purchase of ENERGY STAR® rated LED Backlit LCD televisions and computer monitors. The rebates will be processed through Light and LED Tech Water,with an application,proof of payment,model number and a receipt. It is not an exchange program. Programs P. Reid Director of Utilities Morrow announced the California Municipal Utilities Association(CMUA)Capitol Day and Board Meeting, February 1-2, 2010 Hyatt Regency, Sacramento, and the American Public Power Authority(APPA)Legislative Rally,February 22-25,2010 Mayflower Hotel,Washington DC,and requested that the Board Members let him know if they would like to attend. Board Member Hanks urged the Board CMUA Capitol Members to attend due the effect they would have on legislation. Mr.Morrow also advised that it's late in the Day&APPA year for a San Juan trip and he talked about his visit to the Palo Verde plant and the heavy security. Legislative Rally Moved by Board Member Gonzales,seconded by Board Member Carrillo and unanimously carried to adjourn. Adjourn TIME OF ADJOURNMENT: 8:07 P.M. SECRETARY LG� NEXT RESOLUTION NO.09-056. 10/26/09 PAGE FOUR