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CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY,JUNE 25,2012—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.
Boardmember Gonzlaes called the meeting to order and led in the Flag Salute. Call to Order
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES,MACIAS,HANKS, ROCHA
ABSENT: BOARD MEMBERS: CARRILLO
ALSO PRESENT: Also Present
City Attorney Ferre, City Manager Makshanoff, Director of Utilities Morrow, Assistant to the Utilities
Director Kalscheuer, Pubic Works Director/Assistant City Manager Haes, Assistant Director of Electric
Operations Langit, Police Captain Momot, Assistant Director of Water Operations Anderson, Assistant
Director of Resource Management Lehr,Electric Test Technician Beterbide,Assistant Director of Customer
Service and Care Vanca, City Clerk Mendoza, Acting Deputy City Clerk Hernandez.
PUBLIC PARTICIPATION Pub Part
Mr. Jorge Rosales addressed Board Members regarding items D-5, solicitation of proposals to provide J. Rosales
inspection services for project W-265, and asked if formal bidding procedures applied to this project; and Comments
E-1,two proposed electric vehicle public charging stations,expressing his concern for this expense during
the economic times.
Mr. Mike Lee addressed Board Members wishing good luck to Ms. Candace Toscano for her recent M. Lee
retirement from city employment; inquired on the location of a proposed parking structure; and made Comments
comments regarding a newspaper article on homeless.
At this time,the meeting was taken over by Vice Chairman Macias who apologized for his tardiness. Chairman
Takes Mtg.
Utilities Director Morrow responded to question posed on project W-265 stating that the list of possible G. Morrow
bidders is of those who have stated interest in the project, and the project will also be advertised should Responds to
additional companies be interested in bidding. Question
UTILITIES DIRECTOR'S COMMENTS Director's
Comments
Utilities Director Morrow gave a slide presentation on the Lodi Energy Center Dedication to be held on
August 10, further information will be given; and he showed a video on"Pride in Public Power."
UTILITY BOARD MEMBERS COMMENTS
None
The CONSENT CALENDAR consisting of Items D-1 through D-7, was approved by motion of Board Consent Cal
Member Hanks,seconded by Board Member Gonzales and unanimously carried*,with the exception of item D 4 Spec Call
D-4 which was considered under the Special Call portion of the Agenda.
1. The minutes of the regular meeting of May 29, 2012,were approved as written. Min appvd
2. The Mayor was authorized to execute a Two-Year Extension Agreement of the Low Income Home LIHEAP
Energy Assistance Program (LIHEAP)with the State of California; and the following Resolution was Agmnt
adopted and entitled: Extension
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,EXTENDING THE LOW Reso
INCOME HOME ENERGY ASSISTANCE PROGRAM FOR AZUSA RESIDENTS. 12-C43
3. A Certain Grants of Easement from Los Angeles County Flood Control District accepting permanent LACo
grants of easement for Water Project W-265 was accepted;the following Resolution was adopted and Easement
entitled, and City Clerk was authorized to file it at the Office of Los Angeles County Recorder: Proj W-265
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Reso
ACCEPTING CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING 12-C44
THEREOF.
Spec Call
4. SPECIAL CALL
RFP
5. Solicitation for Proposals to Provide Inspection Services for Water Main Replacement Project W-265 in Proj.W-265
Lark Ellen Avenue,Brookport Street,Bellbrook Street,Vogue Avenue,Benwood Street,Benbow Street,
and Cypress Avenue in Los Angeles County, near West Covina was approved.
2011 Pwr Sourc
6. The Azusa Light& Water 2011 Power Source Disclosure Report and Posting was approved. Disc Rprt
Risk Mngmnt
7. The clarified Appendix D-1 of the Azusa Power Resources Risk Management Policy was approved. Policy
Spec Call
SPECIAL CALL ITEMS
Agreement
4. Approval of Contract with J. De Sigio Construction,Incorporated for Water Main Replacement Project J. De Sigio
W-265. Construction
Water Main
Boardmember Hanks addressed the item requesting staff to collect samples of the removed pipes to Replacement
visually see the damaged. Proj W-265
Moved by Boardmenber Hanks,seconded by Boardmember Rocha and unanimously carried*,to award a
contract to J. De Sigio Construction, Inc. for Water Main Replacement Project W-265,which includes
replacement of 6,200 linear feet of water main of various sizes and appurtenances in Lark Ellen Avenue,
Brookport Street, Bellbrook Street, Vogue Avenue, Benwood Street, Benbow Street, and Cypress
Avenue in Los Angeles County, near West Covina in amount not-to-exceed $1,429,780.
06/25/2012 PAGE TWO
SCHEDULED ITEMS: Sched Items
License Agreements with ECOtality for Furnishing and Installing (i) a Level II Electric Vehicle Public EV Charging
Charging Station at City Hall Parking Lot, and (ii) a Level III DC Fast Charging Station at 6th and San Stations
Gabriel.
Utilities director Morrow introduced the item stating that this has been an ongoing effort to find options to G. Morrow
minimize the cost of installing Electric Vehcile (EV) charging stations units. This is a national project Comments
managed by the Department of Energy who is deploying several thousand EV chargers to a number of
metropolitan areas;AL&W has been negotiating with ECOtality using their grant money,and two proposed
locations to install the EV charges are being presented for consideration of the Board.The only expense to
AL&W will be to extend electric service to the units;maintenance of the chargers will be the responsibility
of ECOtality,and the AL&W will receive 50%of any revenue proceeds;the public will also benefit with the
stations attracting travelers to stop and visit the city while charging their vehicles; and it will be an
opportunity to purchase two electric vehicles for City staff's use.
Discussion was held regarding the city hall location not being accessible to the public, the cost to extend Discussion
electric services to the station, and the upkeep due to possible graffiti vandalism. After further discussion,
Boardmenbers requested staff to look into changing the City Hall location to Light and Water, which they
consider it has better access to the public.
Moved by Borarmember Hanks,seconded by Chairman Pro-tem Macias,and unanimously carried*to reject Approve Opt
option 1,a Level II EV station ad City Hall;and to approve option 2,a Level IIIDC Fast Charging Station at 2 Only, 6th&
6th and San Gabriel. San Gab
Rate Schedule "EDR-2" Revising Economic Development Electric Rate Discounts for Qualified Non- Renewal
Residential Electric Customers. EDR-2
Electric
Utilities Director Morrow addressed the item stating that this is to replace the current Rate Schedule due to Utility
expire June 30, 2012, which provided 10-20% discount for a 3 year period to commercial/industrial Rate Sched
customers;the new discount will be for 3 years at a discount of 15%and a term of 60 months;he explained Non-
the premium option, and gave detailed information on how the discounts will be provided to new or Residential
expanded customers; this discount is possible due to the surplus energy; the revenue will be higher than Customers
selling it in the wholesale market; and the longer the customer stays in business, the more the city and
AL&W benefits.
Discussion was held regarding new and expanding customers, the period of time they need to be in this Discussion
program, how to encourage new businesses, and Boardmembers instructed staff to set up policies as to
qualifying customers, specifically the number of years to stay in business in order to qualify them.
Boardmember Hanks offered a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF AZUSA, Reso 12-C45
CALIFORNIA, APPROVING ELECTRIC UTILITY RATE SCHEDULE "EDR-2-ECONOMIC
DEVELOPMENT RATE"PROVIDING ECONOMIC DEVELOPMENT INCENTIVES FOR QUALIFIED
COMMERCIAL AND INDUSTRIAL ELECTRIC CUSTOMERS.
Moved by Boardmember Hanks,seconded by Chairman Pro-tem Macias and unanimously carried to waive
further reading and adopt. Resolution passed and adopted by the following vote of the Board:
AYES: BOARD MEMBERS: GONZALES, MACIAS, HANKS, ROCHA
NOES: BOARD MEMBERS: NONE
ABSENT: BOARDMENBERS: CARRILLO
It was consensus of the Boardmembers to cancel the Utility Board Meeting of August 27, 2012. Cancel Aug
UB Mtg
06/25/2012 PAGE THREE
STAFF REPORTS/COMMUNICATIONS Staff Rpts
Utilities Director Morrow provided information on the results of smart grid study done regarding the cost and Info Smart
benefits of a potential smart grid project implementation by the Azusa Light and Water. Grid Proj
Utilities Director Morrow provided information regarding the Annual Adjustment of Replacement Water Update Adj
Costs Adjustment and Temporary Leasing of Excess Water Rights. He indicated that there will not be a Repl Cost
surcharge increase due to the surplus on hand.
Utilities Director Morrow gave an update on the San Juan Unit stating that this is still an ongoing project;he Update
explained that SB 1368,if approved,will force plants to make environmental improvements which may cause San Juan
a shut down of the San Juan Plant;Natural Resource Defense Council and Sierra Club are after entities that Unit
are involved in San Juan putting AL&W to be under more scrutiny,and the environmental agencies efforts to
close down the San Juan unit claiming contamination. This is a contamination free facility and the haze,
which is claimed to be problematic for health,is to improve air visibility only,but causes no contamination.
Moved by Boardmember Hanks seconded by Boardmember Gonzales and unanimously carried*to adjourn Adjourn
TIME OF ADJOURNMENT: 8:00 P.M.
i
VERA MENDOZA, SECRETARY
NEXT RESOLUTION NO. 12-C46.
* Indicates Chairman Carrillo absent.
06/25/2012 PAGE FOUR