HomeMy WebLinkAboutMinutes - October 28, 2013 - UB AZ LISA
LIGHT & WATER
CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY,OCTOBER 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.
Vice-Chairman Gonzales called the meeting to order. Call to Order
Pledge to the flag was led by Boardmember Carrillo Flag Salute
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES, CARRILLO,ALVAREZ,ROCHA
ABSENT: BOARD MEMBERS: MACIAS
STAFF MEMBERS PRESENT Staff Present
City Attorney Ferre, City Manager Makshanoff, Director of Public Works/Assistant City Manager Haes,
Utilities Director Morrow,Police Chief Gonzalez,Police Operations Captain Momot,Assistant Director of
Electric Operations Langit, Assistant Director of Water Operations Anderson, Assistant Director of
Customer Care & Solutions Kalscheuer, Assistant Director of Resource Management Lehr, Accounting
Executive Analyst Reid, Utilities Administrative and Finance Service Manager Graham, Secretary/City
Clerk Cornejo,Assistant/Deputy City Clerk Hernandez.
PUBLIC PARTICIPATION Public
Participation
None was given
UTILITIES DIRECTOR COMMENTS Director's
Comments
Utilities Director Morrow introduced new staff member Talika Graham, Utilities Administrative and
Finance Service, and gave a brief history of her career/business background.
UTILITIES BOARD MEMBERS COMMENTS Board
Members
Boardmember Rocha announced that,together with Boardmember Carrillo,City Manager Makshanoff and Comments
Assistant City Manager Haes, that they attended the project kick off for the Metro GoldLine Foothill
extension from Azusa to Montclair and provided information to the Board on the subject;he announced the
Re-Grand Opening of Quality Material Handling, Inc., on November 1, 2013 at 3:30 p.m for which the
Board agreed to present a certificate;and he thanked Police Chief Gonzalez for the updates that have been
`� provided to the Board and Council.
Vice-Chairman Gonzales addressed the meeting thanking Utilities Director Morrow for the successful
shred-a-thon event held on October 26, 2013, and suggested holding the same event in April, 2014.
The CONSENT CALENDAR consisting of Items D-1 through D-7, was approved by motion of Board Consent
Member Alvarez, seconded by Board Member Rocha,and*carried,with the exception of items D-2 and Calendar
D-3,which were handled under the Special Call portion of the agenda.
1.The minutes of regular meeting of September 23, 2013 were approved as written. Min Appvd
2. SPECIAL CALL ITEM Spec Call
3. SPECIAL CALL ITEM Spec Call
4.The three-year landscape and irrigation maintenance contract with E & L Landscape Services for the E&L
upkeep of Azusa Light & Water 21 facilities, in the amount of$37,716 per year ($113,148 for three Landscape
years) was approved; and the termination of the existing contract with Marina Landscape Inc. was Agreement
approved.
5.The extension of the current three-year roofing maintenance contract with Midwest Roofing Company, Midwest Contr
Inc. for an additional two years was approved. Extension
6.The revised(ED22)electric construction standards to be used as references,guidelines,and regulations Electric
by customers and staff were adopted. Standards
7.The following Resolution No. 13-C82, was adopted and entitled: Reso Portfolio
Standards
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ADOPTING AN AMENDED RENEWABLE PORTFOLIO STANDARD("RPS")PROCUREMENT
PLAN IN COMPLIANCE WITH STATE LAW(SBX1 2).
SPECIAL CALL ITEMS Spec Call
Rejection of Recent Bids for Construction of a Pre-Engineered Shed for Protection of the Hydroexcavator Reject Bid,
Trucks and Rebid the Project as Staff Determines Appropriate. Hydro-
excavator
Assistant Director of Water Operations Anderson responded to Boardmember Alvarez's question on the
high bid submitted,stating that this is a truck that went out for bid,only one bid was received,which may
be the reason for the high price that was three times higher than what staff estimated;staff has checked with
other suppliers and found that staff's current estimate was accurate;this truck will be going out to re-bid.
Moved by Boardmember Alvarez, seconded by Boardmember Carrillo and *carried to reject the bid
received October 17, 2013, with staff to rebid, as appropriate, the construction of a pre-engineered steel
shed for storage and protection of the hydroexcavator trucks.Prior to sending the project to rebid,staff will
determine if there are acceptable alternatives to the project as previously bid.
Approval of Purchase of a New 2014 Ford F-150 Pick Up Truck as Replacement Standby Truck for Purchase of
Electric Division. New Truck
Utilities Director Morrow responded to Boardmember Alvarez's question stating that due to the kind of use Discussion
that is given to this particular truck, its less expensive to buy rather than lease,these are high use mileage
vehicles with over 10,000 miles per year,staff plans to keep it for many years,the value in this case comes
through ownership;this truck will replace an old truck that currently has 100,000 miles;this truck is also
used by the standby person who takes it home with him if he is on-call duty.
10/28/2013 PAGE TWO
Moved by Boardmember Alvarez,seconded by Boardmember Carrillo and*carried to approve,pursuant to Appv Purchase
AMC Section 2-523 (e), Article VII Chapter 2, the purchase of a new standby truck for the Electric of Truck
Division;and authorization was given for the issuance of a Purchase Order to National Auto Fleet Group of
Watsonville, CA, in the amount not to exceed $27,306.78, including sales tax and delivery charges.
SCHEDULED ITEMS Sched Items
Approval of Letter Providing Direction to Athens Services on Destination Disposal Sites Following Closure Athens Letter
of Puente Hills Landfill and Related Disposal Agreements. Give Direction
to Athens of
Utilities Director Morrow gave a background stating that Azusa has been using Puente Hills for 15 years, Destination of
but it's due to close on October 31,2013;the agreement with Athens allows Azusa to direct where waste is Landfill to
to be delivered;Athens was the successful bidder to operate in the San Bernardino County Landfill;Athens Dispose of
presented a 10 year proposal with 10% across-the-board rate adjustment, CPI annual adjustment and Waste
possible market adjustment every 3 years; staff evaluated the proposal using an expert to look at
incremental transportation cost increase;staff sent a letter to Athens requesting that waste be delivered to G. Morrow
Mid Valley Landfill and the yard waste to Recycled Wood Products, as those were more economically Presented the
beneficial options;Athens responded that they were unwilling to deliver waste to Mid Valley Landfill,and item
that they would not provide the City with the per ton rates Athens obtained from San Bernardino County;
staff then looked at El Sobrante Landfill as an alternative and received a 10 year proposal from USA Waste;
yard waste would be taken to another facility in Pomona; switching to El Sobrante would benefit Azusa
ratepayers significantly over what Athens' requested in the form of a 10%across-the-board rate increase;
staff requested the Board to consider the following:Approve a letter to Athens Services directing that they
take solid waste to the El Sobrante Landfill,and continue to take landscape recycled products to Pomona;
and formally request Athens Services to approve of the City's selection of a consultant to analyze the
incremental transportation cost to haul waste to the more distant facilities;or consider allowing Athens to
haul waste to the Mid Valley Landfill. In order to execute the first option,the Board would have to also
approve a 10 year contract with USA Waste for use of El Sobrante Landfill, and a 5 year contract with
Recycled Wood Products;should the Board decide to not consider any of these options,the agreement with
Athens will continue and waste will be delivered to San Bernardino.
Mr. Gary Clifford, Athens Representative, requested the Board to take the do nothing option; Athens G. Clifford
believes it is a risk free option,they have been serving the community for over 20 years providing excellent Athens Rep
service;as the Puente Hills Landfill closes,they have been talking to all cities for options,Azusa is unique Comments
and he does not believe that this discussion would have happened with any other city;he understands that
the contract allows the City to direct Athens where to take waste,and the option they offered is the lowest
in cost;what city staff recommends will be the most costly;they have years of experience in hauling waste
from their Materials Recovery Facilities("MRF")and have experience on pricing their service for less cost
to the city; should the Board choose to change and then go back with Athens in the future,the process of
negotiation will start from the beginning;green waste requires additional processing and Athens agreed that
using the Pomona facility was the best approach for the city.
Mr. Brent Anderson,a USA Waste Representative,requested the Board consider contracting El Sobrante; B. Anderson,
he stated that they have given the city the best rate,and El Sobrante is one of the most reliable landfills in USA Waster,
the area; he presented the following comparisons in services of the two proposed landfills: El Sobrante El Sobrante,
Landfill:uninterrupted waste disposal since 1996,open during high wind conditions,offers cost protection Rep Comments
while Athens faces a price increase every 3 years through a market area adjustment; USA Waste can
guarantee the same price for the next 10 years subject to CPI;USA Waste can provide long term indemnity,
and owns and operates landfill, open 24 hrs. 7 days a week trucks can circulate when there is no heavy
traffic, capacity of 70,000 tons per week, will remain open until 2072, more air capacity, wild life
preservation certified by the Wild Life Habitat Council,full time staff of 50 people with reliable expertise
in their fields and customer satisfaction, operate own gas energy and produce 3.48 megawatts of energy
10/28/2013 PAGE THREE
enough to power 6,000 homes.Mid Valley Landfill:closes certain times of the year due to high winds,it is
owned by San Bernardino, no guarantee on indemnity, opens 7-5 p.m. trucks can only circulate during
hours of operation, capacity of 45,000 tons a week, will remain open until 2033.
Discussion was held regarding Athens 10 year contract, cost of disposing waste, distance of delivery and Discussion
cost in terms of percentage increase of Mid Valley vs. El Sobrante, both companies having offered great
service to the city,hiring an expert to analyze the agreement,working with Athens and following contract
procedures, Athens to give assurance that the current rates will be effective during the 90 day analysis
period,Athens being in violation of the contract as they need to find the least cost to the city,staff will look
at what is the least expensive cost to the consumer.
Staff proposed recommendations:(1)A Letter to Athens Services directing that they transfer all of Azusa's Staffs
post-MRF municipal solid waste to the El Sobrante Landfill in Corona,CA,following closure of Puente Proposed
Hills landfill; (2) An Agreement with USA Waste of California, Inc., dba El Sobrante Landfill, a Waste Actions
Management company("USA Waste")for disposal of Azusa's waste at the El Sobrante Landfill in Corona,
CA; and (3) An Agreement with the Recycled Wood Products facility located in Pomona, CA, for yard
waste processing services.
Moved by Boardmember Carrillo,seconded by Boardmember Rocha and*carried to approve item number Appv Agmnt
3 of the recommendation,an Agreement with the Recycled Wood Products facility located in Pomona,CA Woods
for yard waste processing. Understanding was reached that Athens will transfer waste to Mid Valley Products
Landfill in next 90 days,and City and Athens will study transportation cost increase to both Mid Valley and
El Sobrante, in addition to Recycled Wood Products facility in Pomona.
Resolution to Update the Public Benefit Charge(PBC)Program Rate Schedule. Resolution
Updating
Utilities Director Morrow stated that with AB 1890, utilities have to spend a certain amount of money on Public Benefits
public benefits programs; in 1998 a fixed chart was adopted to spend 0.262 cents per kWh; revenue has Program
increased over the past 15 years,and only 1.8% is being recovered;this is cutting into the electric surplus Schedule
for electric programs that are provided,and is a set back as sales in revenues go up;staff has created a new
PBC schedule to move up to the 2.85% needed; beginning July 1, 2014, this will be administratively
adjusted based on revenue,this means a 1% increase rate.
Discussion was held on the dollar amount of the increase,this being applied strictly on electricity,mostly
the surplus is spent on energy efficiency programs.
Boardmember Rocha offered a resolution entitled:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
AMENDING AZUSA LIGHT&WATER'S RULES AND REGULATIONS TO INCLUDE A PUBLIC
BENEFIT CHARGE SCHEDULE FOR ELECTRIC UTILITY CUSTOMERS.
Moved by Boardmember Rocha, seconded by Boardmember Carrilo, to waive further reading and adopt
Resolution No. 13-C83, by the following vote of the Board/Council:
AYES: BOARDMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA
NOES: BOARDMEMBERS: NONE
ABSENT: BOARDMEMBERS: MACIAS
STAFF REPORTS/COMMUNICATIONS Water Supply
Update
Water Supply Update.
10/28/2013 PAGE FOUR
Utilities Director Morrow gave an update stating that the Water Master has purchased expensive water to be
delivered to the river from where some is being taken to supplement the water basins,the entire State is in a
drought as all reservoirs are low including northern California, this year Azusa received only 30%
allocation from the State for water projects, it may decrease to 15% next year if things don't improve;
drought programs and communications with consumers will continue in Azusa.
California Municipal Utilities Association(CMUA)Legislative Update. CMUA
Legislative
A report on the CMUA Legislative Update was included in the Boardmembers packets for their Update
information.
Morgan Meguire LLC Federal Legislative Update. LLC Federal
Legislative
A report on the LLC Legislative Update was included in the Boardmembers packets for their information. Update
Presentation of Azusa CY2011 and CY 2012 Renewable Portfolio Standard Reports.
Utilities Director Morrow informed the Board that the Power Resources Team led by Assistant Director of
Resource Management Lehr,put together some reports required to be filed by law with the State regarding
renewable procurement;the reports were included in the Boardmembers packets for their information.
Assistant Director of Resource Management Lehr responded to Boardmember Carrillo question stating that
the Garnet Wind Project has been operating,and much of it working depends on weather conditions,it has
been successful; staff will have a report for the Board sometime in June, 2014. Adjourn
Moved by Boardmember Carrillo,seconded by Boardmember Alvarez,and*carried to adjourn the meeting.
TIME OF ADJOURNMENT: 7:40 P.M.
411111110
NEXT RESOLUTION NO. 2013-C84.
*Indicates Chairman Macias Absent.
10/28/2013 PAGE FIVE