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HomeMy WebLinkAboutMinutes - May 28, 2013 - UB m. a .... ,F SGA ^ „, •r, t PY iIU AZI A LIGHT & CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL TUESDAY, MAY 28,2013—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 Macias called the meeting to order. Call to Order Pledge to the flag was led by Public Works Director/Assistant City Manager Tito Haes. Flag Salute ROLL CALL Roll Call PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA ABSENT: BOARD MEMBERS: NONE ALSO PRESENT Also Present City Attorney Ferre, City Manager Makshanoff, Director of Public Works/Assistant City Manager Haes, Utilities Director Morrow, Police Chief Gonzalez, Finance Director Paragas, City Treasurer Vasquez, Assistant Director of Electric Operations Langit, Assistant Director of Water Operations Anderson, Assistant Director Customer Care & Solutions Kalscheuer, Assistant Director of Resource Management Lehr, Accounting Executive Analyst Reid, Senior Management Analyst Yang, City Clerk Cornejo, Assistant/Deputy City Clerk Hernandez. UTILITIES DIRECTOR COMMENTS Director's Comments Utilities Director Morrow addressed the meeting thanking Chairman Macias for his service to our country and wished him well during his deployment. UTILITIES BOARD MEMBERS COMMENTS Board Members Boardmember Gonzales wished Chairmember Macias best wishes during his deployment. Comments Chairman Macias addressed the meeting stating that he will miss all, as he also enjoys attending the meetings, and thanked staff for all the information that they provide at the meetings. The CONSENT CALENDAR consisting of Items D-1 through D-5, was approved by motion of Board Consent Member Gonzales, seconded by Board Member Carrillo, and unanimously carried. Calendar 1.The minutes of regular meeting of April 22, 2013 were approved as written. Min Appvd 2. The following Resolutions Nos. 13-C32 and 13-C33 respectively, were adopted and entitled: Easement Resos,Intwala/ A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Greenbriar& ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE Brookfield RECORDING THEREOF. (Bharatbhai and Harsha Intwala, Lot 28 Tract 54057-8 Greenbriar). Rosedale/ Palmetto 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. (Brookfield Rosedale 67, LLC, Lots 13-15 Tract 66141 Palmetto). 3. The City Clerk was instructed to retract Resolution No. 13-C16 approved at the March 25,2013,Utility Easement Reso Board Meeting, and the following Resolution No. 13-C34, was adopted and entitled: Harger/ 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. (Michael and Amy Zhou Harger, Lot 37, Tract 54057-14 Heritage Oaks). 4. The proposal by SA Associates for performing electric substructures inspection services at Rosedale SA Associates Subdivision was approved;and the Director of Utilities was authorized to sign the Professional Services Agmnt Elect Agreement subject to review by legal counsel. Substruct 5. The License and Consulting Service Agreement with Power Settlements Consulting and Software,LLC Power Sett. was approved; and the Utilities Director was authorized to execute the agreement. Consult Agmnt SCHEDULED ITEMS Sched Items 1.Approval of Memorandum of Understanding(MOU)with San Gabriel Valley Municipal Water District MOU (District)to Manage Water and Electric Power Generation Operations. SGVMWD,to Manage Water Utilities Director Morrow addressed the item stating that Azusa has entitlement to the State's Water Project &Elect Power through the District, as well as an agreement with the District to purchase electricity from the San Dimas Generation Hydro Plant;water that goes through the San Dimas Pipeline Unit, is not stored in Azusa's basin, it is sent Operations into the main basin; the San Dimas Pipeline water needs to be poured directly into the upper canyon, as Azusa's basin water levels are decreasing at a fast rate;in order to accomplish this,a business arrangement with the District is needed;this arrangement will need to ensure that the District does not lose revenue;the City of Glendora has agreed to pay for 42% of the cost of the agreement and AL&W will pay 58%. Moved by Boardmember Gonzales, seconded by Boardmember Alvarez and unanimously carried to Appvd MOU Approve the Memorandum of Understanding ("MOU") with the San Gabriel Valley Municipal Water w/SGVMWD District (District) to jointly manage the water and electric generation operations this summer; and to authorize the Utilities Director to execute the MOU following City Attorney's approval. 2.Clarification of Language of Azusa's Phase I/Phase II Water Conservation Measures Regarding Clarification of Fountains. Language AMC Utilities Director Morrow addressed the item stating that the Azusa Municipal Code §78-504, gives §78-504(a)(12) direction of what is not appropriate during water shortage; subsection (a)(12) refers to water used in Re. Recycling decorative fountain ponds or lakes, which states in part that "...unless the water is used as a water Systems recycling system."In trying to determine the meaning of"recycling system,"staff recommended that for 1— clarification, a"recirculating pump"could meet the definition of a"recycling system." 05/28/2013 PAGE TWO Light discussion was held regarding the last water drought,how the fountains dried and were used as trash Discussion receptacles,and the amount of water that evaporates and is replenished being minimal vs.having to replace or repair any of the mechanisms. Moved by Boardmember Carrillo,seconded by Boardmember Rocha and unanimously carried,to approve a Clarification of clarification that a"recirculating pump"complies with Phase I Water Conservation Measure 12(Section Interpretation .__. 78-504, Subsection(a)(12)). Appvd STAFF REPORTS/COMMUNICATIONS Staff Reports 1. California Municipal Utilities Association(CMUA)Legislative Update. Legislative Update Utilities Director Morrow informed the Board that a legislative update was provided with their agenda packets for information,which includes a copy of a letter opposing AB 145 as proposed by Assemblyman Perea,to move all of the drinking water program management functions from the California Department of Public Health (CDPH)to the State Water Resource Control Board (SWRCB), AL&W has worked with CDPH for many years, they have the skill and the philosophy on public safety management program; legislation has concerns on certain issues, and only a portion needs to be moved SWRCB, not the whole program; almost all water agencies are against this proposal. 2.Third Quarter Report for Water and Electric Funds for FY 2012-2013. 3rd Quarter Report for Assistant Director Customer Care&Solutions Kalscheuer presented the third quarterly financial report on Water and the water and electric revenue and operating expenses; he gave information on sales,debt coverage,cash Electric Funds flow, increase on purchase cost and debt ratio. Discussion was held regarding the changes on the capital outlays as revenues and expenses went down, which can be contributed to currently not having major projects on record as they typically take a while to close,one being the GoldLine project;and water restrictions of how the public was to be educated through the various media sources that are available,and the supply of water nozzles that AL&W will be purchasing for distribution to residents. 3. State Review of Azusa's Recycling Programs. State's Review, Azusa Assistant Director Customer Care&Solutions Kalscheuer presented his report stating that AB 939 requires Recycling cities in California to review records on compliance of waste, as part of the contract with the State; our Program 2007-2011 records were reviewed by the state and were found to be in compliance; the pound per person per day that Azusa is allowed to dispose is 6.3lbs per person, from 2007 to 2011, disposal went down to 4.01b,which is due to the economy and public awareness through various available programs and general public education,and encouraging the use of recycled materials;the review period is every 5 years,it used to be every 2 years;fines are$10,000 a day for non compliance;the Puente Landfill will close in October, and Athens recently entered in to a contract with San Bernardino for trash hauling. 4. Residential Energy Efficiency Rebates Program Update. Residential Energy Utilities Director Morrow presented a report of the public benefits program stating that the program Efficiency emanated from AB 1829, which requires municipal utilities to take part of the revenues to be used for Rebates conservation type programs; AL&W public benefits includes 4 types of programs: energy efficiency Program conservation, renewable energy technologies, research development and demonstration and low income Update services, which are used for low income residents in Azusa; the economics of the LED TV program has changed,and staff will start looking at other programs for residents that need assistance on electric issues. Discussion was held on the types of appliances that are now being purchased and which fall under the rebate program, organization of the program, type of assistance programs available for residential and business. 05/28/2013 PAGE THREE 5.Utility Low Income Assistance Programs. Low Income Assistance Assistant Director Customer Care&Solutions Kalscheuer presented a report on the existing 5 low income Program assistance programs:Income Home Energy Assistance,Residential Low Income Assistance,Neighborhood Assistance,and Life Support Device Discount and Utility User Tax Exemption;he gave detail information on how the programs are implemented, how they are funded, and the number of requests funded; with respect to the Neighborhood Assistance Program, it needs to be reviewed to see if the program should continue. 6. "Round-Up"Type Program Evaluation. Round-Up Type Program Utilities Director Morrow provided information on the results of surrounding utilities with similar Round- Evaluation Up Programs;the funds of those programs go to customers in need,and only one assists non customers as well; funds are collected through utility bills; most of the programs have certain complexities if implemented by Azusa,i.e.the matching pay becomes a manual process,money needs to be invested on the current automated systems,they require constant promotion,there is a need for an application process,most agencies use outside agencies for the process to show impartiality on the city's side; in addition AL&W may also need to consider other areas of consideration, such as money donated to customers outside city boundaries,and reports need to be generated to those who donate for tax purposes.Boardmember Gonzales expressed his appreciation for the report presented, and stated that it be best to set this project aside for now, as he was not aware of the investment needed to make this program possible. 7. Past Drought Patrol Statistics Past Drought Statistics Utilities Director Morrow presented to the Board the past drought report statistics, ranging from 2007 to 2011, giving detailed explanation and comparison of each year's figures; he emphasized on how the numbers drastically reduced since 2007 to no violations in 2011, due to public education; 2013 drought program will be focused mainly on educating the public,but citations will still be given should the need arise;we may get through this year,but if the drought continues next year,there may be a need to step up restrictions. 8.Azusa Light& Water FY 2013-2014 Budget. Proposed Budget Utilities Director Morrow addressed the Board giving them their projected budget for next Fiscal Year,to FY 2013-14 which no major changes are anticipated;he explained the departments functions,goals,increased sales of water and electric, refuse budget and the impacts of the closure of Puente Landfill in October, operating budget for water and electric, future projects and compliance of climate change and Renewable Energy. Finance Director Paragas addressed the Board giving them detailed information on AL&W next year's proposed budget,summarizing on the various funds,increase in budget revenues,and projected revenues, operating expenses, preliminary projected for FY 2013-14 balance, transfer out to funding of Terrorism Liaison Officers and EOC Operations officers, and gave a breakdown of the expenditures by fund. Discussion was held regarding billing services,meter readers,collections,customer service representative, the TLO and EOC officers duties and responsibilities for AL&W,the support for these programs,and ideas for possible growth. TIME OF ADJOURNMENT: 7:59 P.M. Adjourn .0„ z 0-<C ' ;gni+ / �-- NEXT RESOLUTION NO. 13-C35. 05/28/2013 PAGE FOUR