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HomeMy WebLinkAboutMinutes - April 22, 2019 - UBCITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD MONDAY, APRIL 22, 2019 – 6:30 P.M. Chairman: Edward J. Alvarez Vice Chairman: Angel A. Carrillo Board Member: Joseph R. Rocha Board Member: Robert Gonzales Board Member: Uriel E. Macias Secretary: Jeffrey Lawrence Cornejo, Jr. The Utility Board/City Council of the City of Azusa met in regular session, at the above date and time, in the Azusa Light and Water (ALW) Conference Room, located at 729 North Azusa Avenue, Azusa, California. Board Member Macias called the meeting to order at 6:31 P.M. Pledge to the flag was led by Police Chief Hunt. ROLL CALL: Roll call was taken by Secretary Cornejo. Vice Chairman Carrillo arrived at 6:36 p.m., after roll call. PRESENT: BOARD MEMBERS: CARRILLO, ROCHA, GONZALES, MACIAS ABSENT: BOARD MEMBERS: ALVAREZ ALSO PRESENT Elected Officials: Secretary Cornejo City Attorney: Jeff Ferre Staff Members: Utilities Director Robledo, Assistant Director of Water Operations Macias, Assistant Director of Electric Operations Palmer, Utilities Programs Specialist Reid, Public Works Director Bobadilla, Police Chief Hunt, Storekeeper Alvarez, Chief Deputy City Clerk Garcia A. PUBLIC PARTICIPATION Jorge V. Rosales inquired about the reason why ALW proposed leasing water rights to three entities in Item E-3 when citizens pay a monthly charge to purchase water rights. B. UTILITIES DIRECTOR COMMENTS Utilities Director Robledo reported ALW was assessed $4 million for the Watermaster's water purchases. ALW passed the assessment to customers through the Replacement Water Cost Adjustment Factor (RWCAF). In a water shortage, ALW is charged $834 per acre foot for water supplied to customers outside the City and $200 per acre foot for water supplied to customers within the City. Leasing the water rights will realize revenue for ALW at a rate of $767 per acre foot, and this revenue is used partially to purchase water at $200 per acre foot. This has been done for the last several years and is budgeted as such, so a rate adjustment would be needed without the lease of these water rights. On customers' utility bills, the RWCAF charge will be changed to Water Cost Adjustment (WCA), which is the term used in the rate schedule. Because of recent rains, water sales were down due to less irrigation. As part of Clean and Green events, 20 tons of compost and 10 tons of mulch were provided to approximately 120 households. Forty-two people PAGE 2 – 04/22/2019 attended a smart gardening workshop, where a master gardener talked about organic gardening, drought-tolerant planting, and composting. City departments and the public participated in the Shred-A-Thon. A hazardous and electronic waste collection day is scheduled for April 27. Three tours of the filtration plant during Drinking Water Week in May are fully subscribed. Additional tours are planned at the end of the summer. Water conservation giveaways are planned for May 9. ALW staff produced a video highlighting water activities, and it, along with two other Light and Water videos, will be placed on the website. C. UTILITY BOARD MEMBER COMMENTS Board Member Gonzales thanked staff for organizing the Shred-A-Thon and the compost and mulch event. D. SCHEDULED ITEMS 1. None E. CONSENT CALENDAR Moved by Board Member Macias, seconded by Board Member Gonzales, and carried by the following vote of the Board to approve Items E1-E5, with the exception of Item E-6 which was handled under the Special Call portion of the agenda: AYES: BOARD MEMBERS: CARRILLO, ROCHA, GONZALES, MACIAS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: ALVAREZ ABSTAIN: BOARD MEMBERS: NONE 1. The minutes of the regular meeting of March 25, 2019 were approved as written. 2. The scope of work of adding a 12,000 Volt main circuit breaker at the Azusa Substation was approved; and issuance of a Request for Proposals for engineering, procurement, and construction of a 12,000 Volt circuit break at the Azusa Substation was authorized. 3. Water rights lease agreements with the City of Monrovia, Valley County Water District, and San Gabriel County Water District were approved; and the Mayor was authorized to execute such water rights leases pursuant to Utility Board Resolution 09-C69. 4. The lease of eight (8) 2019 Chevy Bolt electric vehicles for 35 months was approved; and the Director of Finance or his designee was authorized to issue purchase orders to MK Smith Chevrolet in an amount not-to-exceed $108,765.60 over a 35-month period and to execute a three (3) year lease agreement in a form acceptable to the City Attorney. 5. Resolution 2019-UB-03 was adopted and entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, WITHDRAWING FROM MEMBERSHIP IN THE JOINT POWERS AUTHORITY KNOWN AS THE FINANCING AUTHORITY FOR RESOURCES EFFICIENCY OF CALIFORNIA 6. Special Call PAGE 3 – 04/22/2019 Special Call WITHDRAWL FROM MEMBERSHIP IN THE JOINT POWERS AUTHORITIES KNOWN AS THE POWER AGENCY OF CALIFORNIA Utilities Director Robledo responded to questions posed by the Board stating that the Power Agency of California is not associated with the Independent Service Operator (ISO). The Joint Powers Authority has no staff, no projects, and no current obligations. The Southern California Public Power Authority (SCPPA) does essentially the same thing as the Power Agency. Board Member Macias offered Resolution No. 2019-UB-04 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, WITHDRAWING FROM MEMBERSHIP IN THE JOINT POWERS AUTHORITY KNOWN AS THE POWER AGENCY OF CALIFORNIA Moved by Board Member Macias, seconded by Vice Chair Carrillo, and carried by the following vote of the Board to adopt Resolution No. 2019-UB-04 to withdraw from the Joint Powers Authority known as the Power Agency of California: AYES: BOARD MEMBERS: CARRILLO, ROCHA, GONZALES, MACIAS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: ALVAREZ ABSTAIN: BOARD MEMBERS: NONE F. STAFF REPORTS/COMMUNICATIONS 1. None G. VERBAL COMMUNICATIONS 1. Power Supply Update Utilities Director Robledo advised that the amount of renewable power resources has increased to 19.9%. Renewable resources will continue to increase with energy supplied by the DSR2 solar project and the San Gabriel Valley Water District hydroelectric plant. If necessary, ALW can utilize its banked credits in order to comply with the requirement for 29% renewable resources. Final negotiations are underway regarding the Mesa Wind project. Hopefully, an agreement will be ready for Board approval in May. The existing turbines will be removed, and eight new turbines will be installed to produce 30 MW of energy. ALW will be the only entity receiving power from the Mesa Wind project. In response to a Board Member's inquiry, Utilities Director Robledo indicated Garnet is a renewable wind energy resource from the same area near Palm Springs. 2. Water Supply Update Utilities Director Robledo related that water supplies are in good shape. The water table is rising but is 30 feet below average. The snow pack level is above average. Water conservation measures remain in place. The levels of reservoirs across the state are good. He will present a water supply update to the City Council in May. 3. General Policy and Regulatory Updates Utilities Director Robledo reported staff is following SB 1083, AB 854, AB 56, AB 915, AB 1371, SB 288, SB 772, and AB 1609 because they could affect ALW. AB 56 proposes a State power procurement organization, which could remove local control. Another concept under consideration is regionalization or a regional power grid of western states. ALW removed the high voltage conductors and installed a low voltage insulated line near the end of Hilltop Drive to eliminate PAGE 4 – 04/22/2019 the risk of wildfire. In addition, ALW trims 10 feet around high voltage lines annually. Both measures will be featured in ALW's Wildfire Prevention Plan. H. CLOSED SESSION None ADJOURNMENT The meeting was adjourned by consensus of the Utility Board. TIME OF ADJOURNMENT: 6:59 P.M. __________________________________________ CITY CLERK/SECRETARY