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Home My WebLink AboutMinutes - April 23, 2012 - UB AZ LIGHT VASA TFR A CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY,APRIL 23,2012—6:32 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 Carrillo called the meeting to order and led in the Flag Salute. 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 Makshanoff, Director of Utilities Morrow, Assistant to the Director of Utilities Kalscheuer, Assistant Director Water Operations Anderson, Assistant Director of Resource Management Lehr, Public Works Director/Assistant City Manager Haes, Assistant Director of Electric Operations Langit, Director of Economic and Community Development Christiansen, Finance Controller Paragas,Police Captain Momot, City Clerk Mendoza, Deputy City Clerk Toscano. PUBLIC PARTICIPATION Pub Part Mr. Art Morales addressed the Board Members expressing his opinion regarding the use of Public Benefits A. Morales funds for free swim. He also suggested that people in the Light and Water department can transfer and save Comments money for use for children and seniors. UTILITIES DIRECTOR COMMENTS Dir Comments Director of Utilities Morrow provided an update on the automated trash pick up workshops,invited all to the Morrow Lodi Energy Dedication on August 10, 2012, SB 1368, and required investment for pollution control. He Comments responded to questions posed by the Board Members regarding automated trash timeline,feed back from the community,advertising to the public,contract implementation process,and the contract and evergreen clause. UTILITY BOARD MEMBER COMMENTS Board Member None. Comments None The CONSENT CALENDAR consisting of Items D-1 through D-6, were approved by motion of Board Consent Cal Member Macias,seconded by Board Member Gonzales and unanimously carried with the exception of item C- Appvd D-6 6 which was considered under the Special Call portion of the Agenda. Spec Call 1. The minutes of the regular meeting of March 26, 2012, were approved as written. Min appvd 2. Formal sealed bids were waived in accordance with the Municipal Code Section 2-522,sub-section C; Pur John and the purchase a John Deere 326d Skid Steer Loader was awarded to Coastline Equipment Under Deere Skid Ldr California Multiple Award Schedule (CMAS Contract No. 4-08-23-0023A) in the amount of Coastline $69,719.91, including tax, delivery, discount, and State administrative fees. Equipment 3. Approval was given for the advertisement and solicitation of bids for Project W-265, Water Main Water Main Replacement in Bellbrook, Street, Lark Ellen Avenue, Brookport Street, Benwood Street, Benbow Replacement Street, Vogue Avenue, and Cypress Street in Los Angeles County near West Covina. Project W-265 4. Approval was given for the continuation of the Transaction Services Agreement between Azusa and Transaction Riverside; and the Director of Utilities was authorized to execute the extension agreement and Svs Agmt designated to administer/execute subsequent agreement renewals/amendments provided that Azusa and cumulative annual cost increases do not exceed$10,000. Riverside 5. Director of Utilities was authorized to execute the "Officer Certification Form" as required by the Officer Federal Energy Regulatory Commission (FERC) and the California Independent System Operator Certification (CAISO). Form 6. SPECIAL CALL ITEM. Spec Call SPECIAL CALL ITEM Spec Call Item Approval of Proposal by Standard&Poors for Credit Rating Services for Electric Utility. Credit Rating Svs Board Member Rocha asked what the annual surveillance fee of$5,000 was comprised of,in the fiscal impact. Questions Director of Utilities Morrow responded stating that the rating agency will re-evaluate during the year and put Response out a report. He detailed the issue. Moved by Board Member Rocha,seconded by Board Member Gonzales and unanimously carried to approve Standard& the selection of Standard&Poors for Credit Rating Services in amount not-to-exceed$18,000 plus reasonable Poors Credit out-of-pocket expenses; and the Director of Utilities was authorized to execute agreement subject to City Rating Svs Attorney's review and approval. SCHEDULED ITEMS Sched Items Resolution Approving Documents and Actions to Refinance Certain Long Term Debt Issued by Water and Reso refinance Electric Utilities. Wtr&Elect debt Assistant to the Director of Utilities Kalscheuer addressed the issue stating that in January 2012,the Utility C. Kalscheuer Board authorized Staff to move forward toward refinancing the utility's Water 2003 Series A and Electric Comments 2003 Series B Certificates of Participation. A financing team was assembled, Financial Advisor Urban Futures,Underwriter De La Rosa&Company and Bond/Disclosure Counsel Hawkins,Delafield&Wood. He stated that 20%of issue had been previously refinanced/refunded,and Tax Code allows tax-exempt debt to be refunded only once. He cited the options as follows: 1)Refund only 80%portion($1,056,7000 savings),2) Refund the 20%portion with taxable debt($1,517,900 savings)or 3)Use water system reserves to defease the 20% portion ($1,800,000 savings, he recommended option 3. He stated there is sufficient cash on hand ($20+million),cash reserves earn only minimal interest,would improve debt service coverage and improves refinancing cash flow. He detailed the Water and Electric Bonds projected cash flow,projected savings,and Bond Documents recommending approval. Staff responded to questions posed by Board Members. 04/23/12 PAGE TWO Board Member Macias offered a Resolution entitled: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING AND APPROVING 12-C25 DOCUMENTS AND OFFICIAL ACTIONS RELATING TO REFINANCING OF CERTAIN WATER Refinancing SYSTEM IMPROVEMENTS AND ELECTRIC SYSTEM IMPROVEMENTS AND THE ISSUANCE AND Water System SALE OF WATER SYSTEM REVENUE REFUNDING BONDS AND ELECTRIC SYSTEM REVENUE Improvements REFUNDING BONDS AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH. Moved by Board Member Macias, seconded by Board Member Hanks to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board: AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS,HANKS, ROCHA NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE Moved by Board Member Macias,seconded by Board Member Hanks and unanimously carried to authorize Authorize use use of $2.325 million from water fund balance to defease long-tern debt associated with the Series A Of$2.325 Mil Certificates of Participation issued in 2003 that cannot be advance refunded. Water Balance Approval of License Agreement with ECOtality for Furnishing and Installing Electric Vehicle Public Charging License Agmt Stations on City Owned Property and Rejection of All Other Proposals. ECOtality Director of Utilities Morrow addressed the issue presenting the background stating Staff has issued an RFP for G. Morrow acquisition of EV charging stations,proposals received from Aero Vironment,General Electric,and Charge Comments Point/Coulomb. He stated the City became aware of an opportunity to participate in a national"EV Project", Item tabled for funded in part by federal ARRA grant which will deploy several thousand EV chargers in major metropolitan Additional areas in six states,including California;the contractor for the research project is ECOtality,Inc. He provided a information summary of ECOtality arrangement,and fiscal impact. Question and answer session ensued. It was consensus of the Board Members to table the item in order that Staff gather additional information regarding the chargers, etc. STAFF REPORTS/COMMUNICATIONS Staff Reports Update on California Renewable Portfolio Standards (RPS) Bill and Azusa 2011 Compliance. Update RPS Director of Utilities Morrow stating SBX 1-2 Law requires California electric utilities to reach 33%RPS in G. Morrow three compliance period and key issues for Azusa is treatment of Hoover and grandfathering of renewable Comments resources. He stated that for 2011 Renewable totals were 20.5%with Hoover and 18.8%without Hoover. Assistant Director of Resource Management Lehr stated that this was the first year of the compliance period Y. Lehr and regulations are not finalized yet,perhaps in June-July,the City is looking good going forward with the first Comments and second compliance period. It was consensus of the Board Members to adjourn. Adjourn TIME OF AD. S URNMENT 8:59 $.M. S CRETARY NEXT RESOLUTION NO. 12-C26. 04/23/12 PAGE THREE