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CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY,JANUARY 28,2013—6:33 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 Gonzales called the meeting to order. Call to Order
Pledge to the flag was lead by Boardmember Hanks. Flag Salute
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, Pubic Works Director/Assistant City Manager Haes,
Director of Utilities Morrow, Finance Director Paragas, Assistant Director Customer Care & Solutions
Kalscheuer, Police Lieutenant Chavez, Assistant Director of Resource Management Lehr, Assistant
Director of Electric Operations Langit, Assistant Director of Water Operations Anderson, City Clerk
Mendoza,Assistant City Clerk Hernandez.
PUBLIC PARTICIPATION Pub Part
None given. None
UTILITIES DIRECTOR'S COMMENTS Director's
Comments
Boardmember Macias arrived to the meeting at this time.
At Utilities Director Morrow'request,It was consensus of the Boardmembers to move forward item No.F- T. Zampiello
4 regarding the Watermaster Presentation of the Impact of Critical Habitat Designations on the San Gabriel SG Mail Basin
Valley Water Supply. Watermaster
Presentation
Mr. Tony Zampiello Executive Officer of the San Gabriel Main Basin Watermaster, addressed the item Habitat
giving a description of their operations and how they manage the water supply to cities that are within the Designations
Basin; he explained that the San Gabriel River system and associated water facilities are to the operation
and recharge to the Basin,and how they are being impacted by the habitat designations to protect the Santa
Ana Sucker and the Southwestern Willow Flycatcher;he gave details of the fiscal impact,the possible loss
of water storage and proposals being made to change the designations in order to minimize the impacts and
at the same time protect the species.
Utilities Director Morrow addressed the item explaining that these two habitat designations could impact G. Morrow
future water supply;he added that there is also a possibility to use that the San Gabriel River as a national Comments
park area which could have further implications to the water supply.
The CONSENT CALENDAR consisting of Items D-1 through D-2, was approved by motion of Board Consent
Member Rocha, seconded by Board Member Macias, and *unanimously carried. Calendar
1. The minutes of the regular meeting of November 26, 2012 were approved as written. Min appvd
2. The minutes of the special meeting of December 17, 2012 were approved as written. Min appvd
SCHEDULED ITEMS Sched Items
Approval of Power Sales Agreement(PSA)with Southern California Public Power Authority(SCPPA). SCPPA PSA
Sales Agmnt
Assistant Director of Resource Manager Lehr addressed the item stating that State Law requires
implementation of Renewable Portfolio Standard (RPS), as measured by the percentage of their retail
energy sales;the program is divided into three compliance periods;the first period is for 20%average RPS
for the 2011-13 period and higher levels for future periods;through the Southern California Public Power
Authority(SCPPA)two Silverado solar projects,can assist Light&Water to achieve the RPS requirements,
have been identified;Riverside Pasadena and Azusa are participating in these solar projects and the power
sales agreements are between SCPPA and each participating city;he further explained the projects,cities
proposed participation,date of operation,type of technology to be used, land availability for the projects,
capacity,the terms of the contract, steps on the development of the project, and fiscal impact.
After further discussion regarding the agreement and projects, it was moved by Boardmember Hanks,
seconded by Boardmember Rocha and unanimously carried to approve two Power Sales Agreements(PSA)
with Southern California Public Power Authority(SCPPA)for long term purchase of energy,capacity,and
environmental attributes from two solar projects as proposed for development by Silverado Power.
Nomination of an Alternate Board Member to the San Gabriel Basin Water Quality Authority(WQA). SG Basin
WQA
Utilities Director Morrow addressed the item stating that Azusa has an opportunity to nominate an alternate Nomination
to the (WQA) for their Special Election in April, gave a background of the San Gabriel Basin Water of Alternate to
Quality Authority and its functions,and requested to consider to nominate a Councilmember as a candidate Represent
alternate to the WQA Board of Directors for the next four year term.
Boardmember Macias offered a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,CALIFORNIA NOMINATING Reso 13-05,
COUNCIL MEMBER ROBERT GONZALES TO REPRESENT CITIES WITH PRESCRIPTIVE Nominate
PUMPING RIGHTS AS AN ALTERNATE BOARD MEMBER ON THE BOARD OF THE SAN Alternate
GABRIEL BASIN WATER QUALITY.
Moved by Boardmember Macias, seconded by Boardmember Hanks to waive further reading and adopt
Resolution No. 13-05 approved and adopted by the following vote of the Board:
AYES: BOARDMEMBERS: GONZALES, MACIAS, HANKS, ROCHA
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: CARRILLO
01/28/2013 PAGE TWO
Scope of Work for Request for Proposals(RFP)and Authorization to Issue RFP for Solid Waste Disposal RFP Solid
Analysis. Waste Analysis
Assistant Director Customer Care&Solutions Kalscheuer addressed the item stating that the Puente Hills C. Kalscheuer
Landfill will close October 2013;currently most of Azusa's waste goes through Athens Material Recovery Comments
Facility(MRF), and all the residue is taken to the landfill; residential yard waste is hauled straight to the
landfill;cost of transporting can vary substantially depending on the facility's location;Athens is currently
in a bidding process with San Bernardino County to obtain landfill capacities, and suggested that Azusa
also look into alternative sites as it would be cost effective.
Discussion was held regarding cost of an RFP,Athens submitting proposals to negotiate best alternative
rates and giving them cutoff date to submit their proposal, postponing the RFP, possibility of staff
conducting their own study to search for alternatives,residential green waste,and choosing a facility closer
in order to minimize transportation cost.
It was consensus of the board to table the item on the Request for Proposals for Solid Waste Disposal Item Tabled
Analysis.
STAFF REPORTS/COMMUNICATIONS Staff Rpts
San Juan Project Update(Verbal). San Juan
Project Update
Utilities Director Morrow addressed the item giving the Board an update of continued negotiations with the
U. S. Environmental Public Agency (EPA); two of the four units may shut down giving California
participants the option to vacate the project; it is predicted that Azusa will terminate this project by 2018.
Status Report on Azusa's 2012 Renewable Portfolio Standards(RPS)Energy Deliveries. Report RPS
Energy
Utilities Director Morrow and Assistant Director of Resource Management Lehr addressed the Board Deliveries
giving their annual report on renewable compliance,presenting the 2011 and 2012 compliances with and
without Hoover,which due to certain regulations may not continue with AL&W for much longer;AL&W
is in its final year of the compliance requirement,and has not been able to meet the percentage needed due
to the Hoover Facility and low wind energy; AL&W is in the process of purchasing renewable energy
credits to meet compliance; they further explained terms of sales vs compliance, purchase of tradable
renewable energy certificates and at the end of the compliance period, and the many state regulations to
which energy companies struggle to comply.
California Municipal Utilities Association's(CMUA)"Cost of Mandates" Study. CMUA Cost
Mandates
Utilities Director Morrow addressed the item explaining the difficulty of implementing compliance to the Study
many state and federal mandates; over the last few years there has been 35 major initiatives; an initiative
study by the CMUA has been commissioned on these regulations, and is intended to communicate to
legislators to slow down in implementation of legislations to allow energy companies to implement them;
Governor has stated that they will be moving from 20%renewable to 33% and perhaps 40%; he further
explained to the Board the estimated cost to comply with just 6 of the mandates that are currently in place.
Federal Legislative Update by Morgan Meguire LLC.
Utilities Director Morrow presented the written report on Federal Legislative Update, for the Board's Fed Legislative
review. Update
01/28/2013 PAGE THREE
The Watermaster Presentation: Impact of Critical Habitat Designations on the San Gabriel Valley Water Water Master
Supply was handled under the Utilities Director's Comment portion of the meeting. Present SGV
Water Sypply
It was consensus of the Board to adjourn the Utility Board Meeting.
Adjourn
TIME OF ADJOURNMENT: 7:50 P.M.
VERA MENDO A, S CR TARY
NEXT RESOLUTION NO. 13-C6.
*Indicates Chairmember Carrillo was absent.
01/28/2013 PAGE FOUR