HomeMy WebLinkAboutMinutes - June 24, 2013 - UB AZUSA
LIGHT &WATER
CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE UTILITY BOARD/CITY COUNCIL
MONDAY,JUNE 24,2013—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.
Vice-Chairman Gonzales called the meeting to order. Call to Order
Pledge to the flag was lead by Boardmember Angel Carrillo. Flag Salute
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES, CARRILLO,ALVAREZ, ROCHA
ABSENT: BOARD MEMBERS: MACIAS
ALSO PRESENT Also Present
City Attorney Martinez, City Manager Makshanoff, Director of Public Works/Assistant City Manager
Haes, Police Chief Gonzalez, Assistant Public Works Director/City Engineer Hassel, Economic and
Community Development Director Christiansen, Assistant Director of Economic and Community
Development Director McNamara,Utilities Director Morrow, 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/Public Benefits
Reid, Store Keeper Alvarez,City Clerk Cornejo, Deputy/Assistant City Clerk Hernandez.
PUBLIC PARTICIPATION Pub Part
None given
UTILITIES DIRECTOR COMMENTS Director's
Comments
Utilities Director Morrow addressed the meeting announcing that Azusa Light and Water filed a petition
with the court against the State of California regarding the matter related to the dissolution of
Redevelopment Agency; it is estimated that the court date will be in November 2013.
UTILITIES BOARD COMMENTS
Board
Boardmember Rocha addressed the meeting commending the Police Department for conducting Members
�-- enforcement with compassion on a recent chase and apprehension of suspects, which he witnessed; he Comments
expressed his concern regarding selling of alcoholic beverages to people who are intoxicated,and noted a
case of a man who was killed in a vehicle accident by a drunk driver.
The CONSENT CALENDAR consisting of Items D-1 and D-2, was approved by motion of Board Consent
Member Carrillo, seconded by Board Member Alvarez, and *carried. Calendar
1.The minutes of the regular meeting of May 25, 2013 and the Special Meeting of June 17, 2013, were Min appvd
approved as written.
2.The Azusa Light&Water 2012 Power Source Disclosure report and posting, were approved. Power Source
Disclosure
SCHEDULED ITEMS Sched Items
Annual Water Rights Leasing Transactions Ratify
Execution of
Utilities Director Morrow addressed the item stating that staff negotiates every year for AL&W excess of the Lease of
water rights;the 2013 excess were marketed and staff negotiated 3 deals, 1000 AF to Cal-American Water Water Rights
Company,300 AF to La Puente Valley County Water District and 300 AF to City of Industry Waterworks
System;the value of the leases is under$1,000,000;a resolution is currently in place,which authorizes staff
to consummate these transaction;because these transactions are typically negotiated within few days before
the end of the fiscal year(FY)it moves very quick;there are few more days left for negotiations before FY
ends,and staff may negotiate additional deals;the resolution also calls for disclosure to the Boardmembers
to provide them with the opportunity to ratify these deals; every agency has a different situation on water
rights i.e. supply and demand,and carry over;therefore,bi-lateral transactions/negotiations are the norm;
AL&W has been fortunate in the leasing of water rights, which has brought additional revenue that has
been chiefly used for capital projects.
Boardmember Carrillo requested an explanation of why the sale of water rights during the current drought. Discussion
Assistant Director of Water Operations Anderson responded that the judgment of 1973, gave water
production people a certain percentage of water rights, AL&W currently has 6% of those rights and the
value goes up in value each year approximately 8-10%;AL&W has enough production rights,it is limited
to an amount of production each year,and has had excess for the last few years;the water rights is what is
being leased,these are paper financial rights to pump,there is no wet water associated,and there is no harm
or impact to our basin; if AL&W was to kept them, they would expire and have no value.
Moved by Boardmember Carrillo,seconded by Boardmember Rocha and*carried to ratify the execution of
the water rights lease agreements with California-American Water Company, La Puente Valley County
Water District, and City of Industry Waterworks System.
STAFF REPORTS/COMMUNICATIONS Staff Rpts
2013 Q2 Green House Gasses (GHG)Allowance Auction. GHG
Allowance
Utilities Director Morrow gave an update of AL&W participation in the May 16, 2013, California Air Auction
Resources Board(CARB)auction,stating that they were able to buy and sell with a 0 net;AL&W expects
to have enough allowances to cover its needs; allowances are planned to be used for certain types of
transactions, one being the LODI Energy Center, and can be transfered to other entities who have the
primary responsibility for compliance on Green House Gasses(GHG);the transaction price was$14.00 per
allowance and approximately 14 million allowances were traded;most were traded by companies,such as
AL&W,that are called compliance entities and have obligation to comply with GHG requirements.
Drought Communications Update. Drought
Communicat
Public Benefits Coordinator Reid gave an update on the four basic categories drought communication Updates
►— methods used by AL&W: 1.Print media i.e. SGV newspaper articles;2.Community postings i.e.banners
by Costco on Foothill and on Citrus by APU, and the 210 Fwy reader board;
06/24/2013 PAGE TWO
3.drought patrol and community events i.e.educating the public how to use water efficiently including the
distribution of hand held shut off nozzles, aerators, rain gauges etc.; 4. website postings at AL&W,
SGVMWD (H2Ow1) and BeWaterWise.com; information provided includes water conservation tips i.e.
lawn irrigation guides and water conservation programs;the key is communication and education to change
customers' habits; messages are updated periodically to keep the most current information available and
fresh.
Morgan Meguire LLC Monthly Legislative Update. Morgan
Meguire
Utilities Director Morrow informed the Board that included with their agenda packets, is the federal Legislative
legislative update on energy and water issues for their information. Update
AB 145 (Perea). AB 145 (Perea)
Utilities Director Morrow informed the Board that water agencies in California are very active on this Bill,
which proposes to move the drinking water program from the Health Department to the Department of
Water Resources;this may be due to the Department of Health not issuing loans,from the federal allocated
money, fast enough to some agencies to assist them in meeting health requirements; water companies
suggested that if the issue is the loan program, it should be moved to the State Department of Water
Resources to be administered;to move the entire Health Water Program and all the safety requirements to a
new group, is not appropriate; Senator Hernandez, who chairs the Health Committee, is assisting water
agencies on this issue.
San Onofre Closure. San Onofre
Closure
Utilities Director Morrow informed the Board that there are there are 3 participants in San Onofre Plant,
San Diego Gas and Electric Company,the City of Riverside and Southern California Edison Co.,who all
decided to shut down the plant;it is a big change for the electric business in Southern California as the unit
provided electrical support for the net work, not just for electrons it provided, but for the location of
electrons,and the stability of the gird;losing the plant creates a big power supply gap and prices have risen
significantly, Edison will be looking for replacement of this power, and this impacts other agencies who
bring power to Southern California;provided that there is no problems with AL&W current lines,it should
be fine through the summer; the loss estimate is approximately 15%; AL&W will try to minimize the
impact to customers however, customers should prepare for the possibility of block outs.
Moved by Boardmember Carrillo,seconded by Boardmember Alvarez and unanimously carried to adjourn. Adjourn
TIME OF ADJOURNMENT: 6:55 P.M.
41111,
I' ,.�r /
NEXT RESOLUTION NO. 13-C42.
* Indicates Chairman Macias was absent.
06/24/2013 PAGE THREE