HomeMy WebLinkAboutMinutes - March 25, 2013 - UB 9r;
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AZUSA
LIGHT & WATER
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CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY,MARCH 25,2013—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.
Chairman Carrillo called the meeting to order. Call to Order
Pledge to the flag was lead by Chairman Carrillo. Flag Salute
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
ABSENT: BOARD MEMBERS: NONE
ALSO PRESENT Also Present
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City Attorney Ferre, City Manager Makshanoff, Utilities Director Morrow, Director of Public
Works/Assistant City Manager Haes, Police Chief Gonzalez, Assistant Director of Electric Operations
Langit,Assistant Director of Water Operations Anderson,Assistant Director Customer Care& Solutions
Kalscheuer, Assistant Director of Resource Management Lehr, Finance Director Paragas , Information
Officer Quiroz, Store Keeper Alvarez, City Clerk Cornejo, Assistant City Clerk Hernandez.
PUBLIC PARTICIPATION Pub Part
Mr. Art Morales addressed the meeting regarding local restaurants. A. Morales
UTILITIES DIRECTOR COMMENTS Director's
Comments
Utilities Director Morrow addressed the meeting welcoming new officials,and introduced members of his
staff. He stated that Azusa Light and Water (AL&W) has again been designated as the Reliable Public
Power Provider(RP3);out of 2,000 public utilities, 90 received this designation;AL&W score improved
from the designation two years ago; factors that are evaluated for this award are reliability, safety,
workforce development and capital improvement projects.
UTILITIES BOARD COMMENTS Board
Members
Chairman Carrillo welcomed newly elected officials,Boardmember Edward Alvarez and Secretary Jeffrey Comments
Lawrence Cornejo,and congratulated the Chamber of Commerce for the Breakfast Friday,March 22,Grace
Napolitano, representing the 32nd Congressional District, was the guest speaker.
Board Member Macias congratulated staff on the electric vehicles;light discussion was held regarding test
drive by the Board Members,promoting electric vehicles to the community, lease terms, benefits,and the
EV (Electric Vehicle)charging station on 6th and San Gabriel.
Election Chairperson and Vice Chairperson to serve as officers of the Utility Board. Election
Chairman,
Moved by Chairman Carrillo, seconded by Board Member Rocha, and unanimously carried to appoint Vice-Chair&
Boardmember Macias as Chairman, Councilmember Gonzales as Chairman Pro-tem and City Clerk Secretary
Cornejo as Secretary,to serve for the Utility Board.
Chairman Carrillo addressed the item requesting an amendment be made to the staff report under the Amend
background section,first paragraph,second sentences to read:"The Utility Board is appointed by the City Staff
Council and is currently composed of City Council Members acting as Utility Board Members...." Report
Chairman Carrillo stepped down from his position and newly appointed Chairman Macias conducted the
remainder of the meeting.
The CONSENT CALENDAR consisting of Items D-1 through D-7,was approved by motion of Board Consent
Member Carrillo,seconded by Board Member Gonzales,and carried,with the exception of Item D-7 which Calendar
was handled under the Special Call Portion of the agenda;Board Member Alvarez abstained from items
D-1 and D-2.
1.The minutes of the regular meeting of February 25,2013,were approved as written. Min appvd
2. The minutes of the special meeting of March 4, 2013 were approved as written. Min appvd
3. The following Resolution numbers 13-C16, 13-C17, 13-C18 and 13-C19 where adopted and entitled: Resos
Easements KB
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Home Costal&
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE CityView
RECORDING THEREOF (KB Home Costal Inc. Lots 46, 51, 55 Tract 63336-2 Mapleton). Rosedale
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF (KB Home Costal Inc. Lot 7 Tract 63336-2 Mapleton).
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF (CityView Rosedale 98, LP Lot 10 Tract 54057-14 Heritage Oaks).
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF (CityView Rosedale 98, LP Lot 37 Tract 54057-14 Heritage Oaks).
4.The amendment to Hunter Electric blanket purchase order for FY 2012-2013 in amount of$25,000 for Blanket P.O.
routine and emergency electrical repairs at water facilities was approved. Hunter Elect
5.The Scope of Inspection Services for electric facilities at Rosedale Subdivision was approved; and RFP Insp
staff was authorized to solicit request for proposals(RFP). Svcs
6.Utilities Director was authorized to register with Markit North America's Auction Platform(MAP)as
provided for by the California Air Resources Board(CARB)and administer, either directly or through
his designee(s), trading activities associated with the account; and to post $500K collateral for the GHG Green
purpose of participating in CARB's May 16, 2013 Greenhouse Gas (GHG) auction. Hse Auction
7. SPECIAL CALL ITEM. Spec Call
SPECIAL CALL ITEMS Spec Call Itms
03/25/2013 PAGE TWO
Selection of Law Firm to Represent Azusa Light& Water in Litigation Concerning Loans Made to the BWS
Former Redevelopment Agency. Represent
L&W
Board Member Carrillo addressed the item stating that 5 proposal were submitted and reviewed by the Ad Representation
Hoc committee; a thorough review of the proposals was conducted by the committee who considered the vs DOF
reputation of the firm and their understand in municipal matters, the number of cases currently being
handled on this issue, comparable rates, overall proposal, and resources available to them for handling
municipal cases;based on their review,the most qualified was Burke Williams and Sorenson (BWS).
Moved by Board Member Carrillo, seconded by Board Member Gonzales and unanimously carried to
Select Burke Williams and Sorensen (BWS) to represent Azusa Light& Water in litigation concerning
loans made to the Former Redevelopment Agency against the State Department of Finance and Los
Angeles County concerning loans made to the former Redevelopment Agency, and the utilitywas
authorized to execute the services agreement.
SCHEDULED ITEMS
Scope of Work for Customer Service Phone System and Request for Proposals (RFP). Sched Items
Assistant Director Customer Care & Solutions Kalscheuer addressed the item explaining that Utility RFP Phone
Customer Service handles approximately 5,000 phone calls monthly which are routed through the Police System
Station PBX; calls are recorded to insure quality of customer service and customers commitments to pay
services;the current system is old, inaccurate and lacks numerous management features that are found in
newer systems; he explained in detail new systems available and their features such as internet services,
intelligent call routing,call monitoring,calls recorded,and waiting time notification to customers;computer
upgrades have been installed, and this system has been budget for to include desktop monitors to comply
with the new system.
Moved by Board Member Carrillo, seconded by Board Member Alvarez and unanimously carried to
approve the scope of work for customer service phone system and authorize staff to issue request for
proposals.
Purchase of 31 Megawatt of Required Local Resource Adequacy Capacity for 2014 from NRG Energy. Purchase
Local
Utilities Director Morrow addressed the item stating that each year under the CAISO electrical rules Azusa Resource
Light&Water(AL&W)has to procure certain power capacity,and part of that capacity has to be local;the Adequacy
Resource Adequacy Program provides that AL&W procure sufficient electric power,staff issues requests Capacity
for providers, and chooses the best proposal; current negotiations are for 2014 year, due to the current NRG
market and the decreased number of sellers.
Moved by Board Member Gonzales seconded by Board Member Carrillo and unanimously carried to
approve Local Resource Adequacy Capacity purchase of 31 MW for calendar year 2014 from NRG Energy
in amount of$1,116,000;and to authorize the Director of Utilities to execute the associated Confirmation
Agreement.
STAFF REPORTS/COMMUNICATIONS Staff Rpts
Update on Electric Vehicles/Charges. EV Update
Utilities Director Morrow thanked council for their support on the lease of two Electric Vehicles(EV),as it
will benefit L&W; he gave information on the conditions of the lease and an overview of the vehicles'
functions; and gave an update of the EV chargers on the corner of 6th and San Gabriel.
03/25/2013 PAGE THREE
Second Quarter Budget Report for Electric and Water Funds for FY 2012-2013. Quarter
Budget
Utilities Director Morrow presented the quarterly report,giving an update on consumption,revenues and Report
expenses,water and electric rates, and operating expenses and sales.
Map of Completed Water Line Projects. Water Line
Projects Map
Utilities Director Morrow informed the Board that a map indicating the completed Water Line Projects was
included with their packets, for their review.
Water Supply Update. Water
Supply
Utilities Director Morrow gave an update stating that the water supply has not improved since last month; Update
rainfall precipitation is below by 55-60%than normal;water supply continues to decrease and restrictions
may need to be considered.
Potential Procurement of Energy Hedge(s)for Summer 2013.__ Summer
Energy
Utilities Director Morrow announced that AL&W power resources are being monitored carefully as prices Hedge(s)
continue to rise; factors may be the closure of the San Onofre Nuclear Generating Station, and the price
increase of natural gas in California.
2012 American Public Power Association (APPA)Accomplishments. APPA
Info
Utilities Director Morrow addressed the meeting stating that AL&W is a member of the American Public
Power Association;the Association is based in Washington D.C.and is very active in their lobbying for the
members who they represent.
Proposed National Recreation Area Designation of the San Gabriel Mountains and River. Proposed
Natl
Utilities Director Morrow informed the Board that 10 years ago a National Park in the San Gabriel Park
Mountains and the San Gabriel River was proposed, and to be designate it as a national recreation area;
National Park Service kicked started the study in 2005, and finished it in 2011; the budget portion is
currently up for review by the Office of Management and Budget; there is considerable support for this
project; however, this has raised concerns for water companies who benefit from the water supplies that
come from the mountains, since the park will impact the supply. Discussion was held regarding support
from legislation on this project.
It was consensus of the Board to adjourn the Utility Board Meeting. Adjourn
TIME OF ADJOURNMENT: 7:20 P.M.
NEXT RESOLUTION NO. 13-C20.