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Home My WebLink AboutMinutes - November 26, 2012 - UB _ _ AZUSA LIGHT R '� ATFk CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY,NOVEMBER 26,2012—6:30 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(AL&W) Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairmember Carrillo called the meeting to order. Call to Order Pledge to the flag was lead by Boardmember Rocha. 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,City Manager Makshanoff,Pubic Works Director/Assistant City Manager Haes,Director of Utilities Morrow,Interim Finance Director Paragas,Acting Assistant Director Customer Care&Solutions Kalscheuer, Police Lieutenant Chavez, Assistant Director of Resource Management Lehr, City Clerk Mendoza, Acting Assistant City Clerk Hernandez. PUBLIC PARTICIPATION Pub Part None given. None UTILITIES DIRECTOR'S COMMENTS Director's Comments Utilities Director Morrow addressed the meeting giving information on the following: Two upcoming events: 2013 APPA (American Public Power Association) Rally, March 11-13, 2013, in APPA Rally& Washington D.C.; and the California Municipal Water Association (CMWA) Conference in Sacramento CMWA Conf. State Capitol on January 14, 2013. Lodi Energy Center is scheduled to be commercially operational this week; personnel issues arose at the Lodi Energy NCPA(Northern California Power Agency);and they are working on resolving them and move the project Update forward. UTILITY BOARD MEMBERS COMMENTS Board Members None were given. Boardmember Macias joined the meeting at this time. Comments The CONSENT CALENDAR consisting of Items D-1 through D-4, was approved by motion of Board Consent Member Gonzales, seconded by Board Member Hanks, and unanimously carried. Calendar 1.The minutes of minutes of the regular meeting of October 22,2012,were approved as written. Min appvd 2.An amendment to United Pumping Services, Inc.'s blanket purchase order for providing hazardous Blanket P.O. waste collection and disposal services in FY 2012/13 for an additional amount of$10,000,was approved United Pump 3.The regularly scheduled Utility Board Meeting of December 24, 2012,was cancelled. Dec Mtg Cancl 4.The following resolution No. 12-C87 was adopted and entitled: Reso 12-C87 Voting A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF AZUSA, Delegate SGB CALIFORNIA,CASTING ITS VOTES FOR COUNCILMEMBER LUIS AYALA OF THE CITY OF Water Quality ALHAMBRA TO REPRESENT CITIES WITH PRESCRIPTIVE WATER PUMPING RIGHTS Authority ON THE BOARD OF THE SAN GABRIEL BASIN WATER QUALITY AUTHORITY. SPECIAL CALL ITEMS Spec Call None None SCHEDULED ITEMS Sched Items Azusa's Renewable Portfolio Standard(RPS)Procurement Plan and Azusa RPS Procurement Logic chart. Renewable Portfolio& Assistant Director of Resource Management Lehr addressed the item explaining that SBX1 2 became law Procurement December 20, 2011, which shapes electric utilities business in California; it will affect energy mix as it is Chart; Reso provided and served, and in turn it will affect the pricing of transmission and integration as well as rates; No. 12-C88 there are still no final regulations in place by the CEC (California Energy Commission)who is the arbiter; POU (Publicly Owned Utilities)will regulate by its interpretation of the law; once CEC has regulations in place,they may be different than what POU interprets. SBXI 2 requires POUs procure certain amounts of renewable energy in 3 different compliance periods that come in 3 different groupings called portfolios content categories or buckets; he explained the difference and price/value of the three, and detailed the utility's current RPS resource situation and how new contracts have been sought;to consider grandfathered resources will depend on the CEC interpretation, and when they were acquired; he stated that L&W will continue to review potential longer term renewable projects for meeting unmet needs of compliance periods 2 and 3; procurement plan may be modified by Utility Board as future conditions warrant. Boardmember Rocha offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF AZUSA, CALIFORNIA,ADOPTING A RENEWABLE PORTFOLIO STANDARD(RPS)PROCUREMENT PLAN IN COMPLIANCE WITH STATE LAW(SBXI 2). Moved by Boardmember Rocha, seconded by Chairman Carrillo to waive further reading and adopt. Resolution No. 12-C88 passed and adopted by the following vote of the Board: AYES: BOARDMEMBERS/COUNCILMEMERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: BOARDMEMBERS/COUNCIL:NONE 11/26/2012 PAGE TWO STAFF REPORTS/COMMUNICATIONS First Quarter Budget Report for Water and Electric Funds for Fiscal Year 2012-13. Staff Rpts Acting Assistant Director Customer Care&Solutions Kalscheuer addressed the item giving an update on the Qtr Report quarterly budget report, and explained sales increase of 6.8%, positive cash flow on the water utility, debt Water& coverage ratio,27%revenues YTD, 19%expenses YTD,26%for capital and operating expenses YTD.Light Electric discussion was held regarding the reasons for the increases in revenue. On the electric, he provided an explanation on the cash flow,operating expenses debt coverage,expenses and expenditures,investments and turn around income. Business Recycling Program Final Report. Acting Assistant Director Customer Care&Solutions Kalscheuer addressed the item stating that in January Recycling 2011, the Utility Board awarded a contract to E. Tseng & Assoc, for technical assistance program that Program reached out to commercial businesses to assist them to reduce the amount of waste generated. With the Update assistance of Athens,the consultant assisted approximately 50 businesses that were identified as the largest waste generators, reviewed their operations and found options to increase the amount of recycling; 21 businesses engaged in the recycling program, as some were already participating. Discussion was held regarding the benefits of diverting waste,amount of tonnage required by the state to be diverted,the additional cost to customers for recycling,the closure of Puente Hills that increased the amount of tons required to be diverted, amendments of contract with Athens, and current diversion is 50%, which Discussion may increase as the goal will be 75%by legislation. Solid Waste Survey by HF&H. Acting Assistant Director Customer Care&Solutions Kalscheuer addressed the item stating that every year HF&H HF&H does a report on Los Angeles County Cities,which shows the rate comparison factor;Azusa ranked Survey 45 out of 77 cities; he gave an overview of rates in Los Angeles County and the ones that have automated system services; about 20% of the cities are served by Athens; this survey assists Utilities in keeping compatible rates compared to other cities that use Athens. SCPPA Power Purchase Agreement with Silverado Power for Solar Energy(Azusa Interest of 7 MW). Assistant Director of Resource Management Lehr addressed the item stating that SCPPA monitors and seeks SCPPA projects throughout the year;a project was identified North of Lancaster,which may be of interest to L&W as Power it is type 1 bucket,and that it carries resources adequacy capacity benefits resulting in cost savings;he gave a Purchase slide presentation of the Silverado solar project. Agmnt. Public Power's Business Model: A Primer. Utilities Director Morrow presented the report, which shows that Public Power Utilities own 32% of the Public market nationally, and investor 68%; nationally, of the 2000 Public Utilities, Azusa is in the top 15%; he Power pointed out the importance public power rates, services,no stock holders,and credit ratings. Business Model TIME OF ADJ I URNMENT: 7:23 P.M. /41 Adjourn VERA MENDOZA, SECRETARY NEXT RESOLUTION NO. 12-C89. 11/25/2012 PAGE FOUR