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Home My WebLink AboutMinutes - September 26, 2011 - UB A 1JSA LIGHT &WATFR CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, SEPTEMBER 26,2011—6:31 P.M. The Utility Board/City Council 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 Hanks called the meeting to order. Call to Order Mr. Art Morales led in the Flag Salute. Flag Salute ROLL CALL Roll Call PRESENT: BOARD MEMBERS: GONZALES, CARRILLO,MACIAS, HANKS, ROCHA ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, Assistant City Manager Makshanoff, Director of Utilities Morrow, Assistant to the Director of Utilities Kalscheuer,Assistant Director of Customer Service Vanca,Assistant Director of Water Operations Anderson,Assistant Director of Resource Management Lehr, Administrative Services Director— Chief Financial Officer Kreimeier, Public Works Director/Assistant City Manager Haes, Assistant Library Director Strege,Assistant Director of Electric Operations Langit,Lieutenant Bertleson,City Clerk Mendoza, Deputy City Clerk Toscano. PUBLIC PARTICIPATION Pub Part Mr. Art Morales addressed the Board Members expressing his concern regarding the Edgewood Shopping A.Morales Center stating that people do not shop there due to vagrants,and crime.He thanked the Azusa Light and Water Comments employees for their quick response to a power outage in the area where he resides. He stated that people are taking shopping carts out of the Target parking lot and suggested that the curb by the alley where the Post Office is be painted red as it is hard to get in and out of the parking lot. Lieutenant Bertleson responded to comments made regarding the Edgewood Shopping Center stating that the Lt.Bertleson Service Area Officer is well aware of problems and is looking into the matter. Response UTILITIES DIRECTOR COMMENTS Dir Comment Director of Utilities Morrow addressed the Board Members stating that the new Customer Information Billing Dir of Utilities System is now live, they have completed the installation of Ice Bear cooling system replacing the air Comments conditioning system in the computer room and they may install the same at North Recreation Center and City Hall, the Governor has signed Bills for heavier penalties for the theft of copper wire and allowing DMV to provide information on electric vehicle registration,and the EPA order SCR, selective catalytic reduction at San Juan new environmental system has been appealed. UTILITY BOARD MEMBER COMMENTS Brd Mbr Com None. None The CONSENT CALENDAR consisting of Items D-1 through D-7, were approved by motion of Board Consent Cal Member Gonzales, seconded by Board Member Carrillo and unanimously carried. Appvd 1. The minutes of the regular meeting of July 25, 2011,were approved as written. Minutes 2. Approval was given to award of contract to Systems&Software in amount not-to-exceed$16,000 to Systems& automate the process of uploading/downloading payment files from Azusa Light & Water's three Software payment vendors. 3. Approval was given to ratify the award of contract to AAJ Incorporated in amount not-to-exceed AAJ Inc. $12,745 for urgent repairs of the underground electric conduit that runs along the north end of Repair of Avenida Conejo and onto the property of Azusa Greens Golf Course,north of Sierra Madre Avenue. Elect Conduit 4. Approval was given to award contract to Best Contracting Services in amount not-to-exceed$112,345 Best Contract for refurbishing the existing roof at the Electric Division Yard(1020 W. 10th Street). Svs roof repair 5. Approval was given to ratify the water rights leases to the Sunny Slope Water Company and Miller- Sunny Slope Coors and ratify signature of the leasing documents signed by Sunny Slope Water Company as Water ratify allowed by Resolution No. 09-C69 approved by the Utility Board on July 27, 2009. Wtr rights 6. The bid by Ironman was approved in the amount of$61,981.00 to retrofit four(4) Water Division Ironman diesel trucks with Particulate Matter(PM)Traps pursuant to Azusa Municipal Code 2-523. retrofit trucks 7. The proposal of Moss,Levy,&Hartzheim,LLP was approved in amount not-to-exceed$19,845 to Moss, Levy& provide auditing services to the Financing Authority for Resource Efficiency of California(FARECaI) Hartzheim pursuant to agreement with FARECa1 approved by the Utility Board on November 22,2010. audit sys SPECIAL CALL ITEM Spec Call Item None. None SCHEDULED ITEMS Sched Items Execution of Memorandum of Understanding for the Assignment of San Juan Unit 3 Entitlement Rights. MOU Assign San Juan Rghts Director of Utilities Morrow addressed the issue stating that the Utah Associated Municipal Power Systems Dir of Utilities (UAMPS)has been identified as a possible buyer of Azusa's San Juan Interests.He talked about the increased Comments cost for San Juan with declining performance and cited many issues. He presented a Memorandum of Understanding regarding the acquisition of Rights in San Juan 3,and talked about UAMPS and its baseload needs,and detailed the MOU. 09/26/11 PAGE TWO Moved by Board Member Carrillo,seconded by Board Member Rocha and unanimously carried to authorize MOU w/ the Director of Utilities to sign a Memorandum of Understanding (MOU) for the layoff and sale of Azusa UAMPS Light & Water's interest in the San Juan Project to the Utah Association of Municipal Power Systems Approved (UAMPS). Amendment to the Azusa Risk Management Policy_ Amend RMP Assistant Director of Resource Management Lehr addressed the issue stating that Risk Management Policy Asst Dir Res was adopted in 1999 and amended once to allow for gas hedging. SBX 1 2, California Renewable Energy Management Resources,and AB 32 Global Warming Solutions Act were enacted and affect electric utilities which make it Lehr necessary to enhance the Risk Management Policy. The GHG regulation is an allowance to emit one metric ton ofNox equivalent gas,which offsets the need to reduce GHG or CO emissions. The RPS regulation is the Renewable Energy Credit which is the"renewable attribute"associated with generating one MWH of energy by the CEC certified renewable resource. Moved by Board Member Macias,seconded by Board Member Gonzales and unanimously carried to approve Risk Mngmt the amendments to the Azusa Risk Management Policy as shown in the attachments to this report, including Policy amend Exhibit A and Appendix D-1. Approved Authorization to Solicit Proposals for Financial Advisor. Prop Fin Advsr Assistant to the Director of Utilities Kalscheuer stated this is a request or proposals for a Financial Advisor to Asst Dir Util evaluate and facilitate refunding of long term debt for water utility. He talked about the revenue bonds issued Kalscheuer to buy Azusa Valley Water Company in 1993 that were refinanced in 2003 by the issuance of$20,370,000 in Certificates of Participation. He stated that recent bond market trends indicate possible savings by refinancing, and the current debt service is$1.255 million per year with an average yield of 4.78%. He highlighted the Scope of Work which would analyze the 2003 debt to validate savings, develop a strategy to implement refinancing,assist with selection of bond counsel to develop necessary documents,obtain updated rating from credit rating agencies and advise City during sale proceedings and closing. Moved by Board Member Carrillo,seconded by Board Member Macias and unanimously carried to approve RFP Financial Request for Proposal(RFP)scope of work and authorize staff to issue RFP to solicit proposals from Financial Advisors Advisors to consider options to refinance long term debt of water utility related to the purchase of Azusa Approved Valley Water Company. STAFF REPORTS/COMMUNICATIONS Staff Rpts Assistant to the Director of Utilities Kalscheuer presented the Fourth Quarter Budget Report for Electric and C. Kalscheuer Water Funds, FY 2010-2011. The Water utility ended FY 11 with$26.3M cash reserve($25M minimum, Water and quarterly sales dropped 6.0%from prior year and 26%from FY07,debt service coverage of 1.33 is adequate Electric Fourth (1.25 goal). The Electric fund has a positive cash flow of$323K,reserve level is$11.7 million,debt coverage Quarter Budget of 5.6 is good and sales declined 2.8%from prior year through second quarter and 5.6%from two years ago. Report Moved by Board Member Carrillo,seconded by Board Member Gonzales and unanimously carried to adjourn. Adjourn TIME OF ADJ O - ENT: 7:18 P.M. Air SECRETARY NEXT RESOLUTION NO. 11-C71. '"' 09/26/11 PAGE THREE