HomeMy WebLinkAboutE-1.1. Minutes of the Regular Utility Board Meeting on May 28, 2019_ApprovedCITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD
MONDAY, MAY 28, 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 6:30 P.M.
Pledge to the flag was led by Police Captain Grant.
ROLL CALL: Roll call was taken by Secretary Cornejo.
PRESENT: BOARD MEMBERS: ALVAREZ, ROCHA, GONZALES, MACIAS
ABSENT: BOARD MEMBERS: CARRILLO
ALSO PRESENT
Elected Officials: Secretary Cornejo
City Attorney: Jeff Ferre
Staff Members: Utilities Director Robledo, Assistant Director of Water Operations Macias, Assistant Director of
Resource Management Torres, Utilities Programs Specialist Reid, Senior Electrical Engineer Vuong, Utilities
Administrative & Finance Services Manager Tran, Senior Management Analyst Smith, City Manager Gonzalez, Finance
Director Johnson, HR Director Bragg, Economic & Community Development Director Marquez, Public Works Director
Bobadilla, IT/Library Services Director Graf, Recreation & Family Services Director Carpenter, Police Chief Hunt,
Economic Development Specialist Campos, Planning Manager Munoz, Police Captain Grant, Community Improvement
Manager McMinn, Storekeeper Alvarez, Assistant Director of Finance Honis, Assistant Director of Public Works
Delgadillo, Assistant Chief Deputy City Clerk Juarez
A.PUBLIC PARTICIPATION
None
B.UTILITIES DIRECTOR COMMENTS
Utilities Director Robledo reported the new Chevrolet Volts have arrived and have been deployed in the Police
Department, but staff is awaiting the chargers. During Drinking Water Week, 42 members of the public participated in
tours at the treatment facility and received water conservation gifts.
E-1
UB-20
Approved
Utility Board
06/24/19
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C. UTILITY BOARD MEMBER COMMENTS
Board Members Rocha and Macias thanked staff for keeping Board Members informed of City events and for removing
graffiti on a holiday.
D.SCHEDULED ITEMS
1.Approval of Renewable Power Purchase and Sale Agreement between City of Azusa and Mesa Wind Power
Corporation.
Utilities Director Robledo reported the agreement contains a 25-year term and sets the cost of power at $39.50 per
Megawatt (MW) hour. Power from Mesa RP30 should be more predictable than other wind projects because it is located
in a high-wind area of Palm Springs; however, ALW will continue to need other resources to back up Mesa RP30. On
average, Mesa RP30 will produce approximately 15 MW of power around the clock, which will complement power from
ALW's solar resources. ALW will receive all power produced from the project and pay only for the power produced.
With this power resource, ALW will be one of the most, if not the most, renewable municipal utility in the area by 2022.
The project is scheduled for completion by the end of 2021. Staff reviewed other options that were outside the state and
in San Diego, but their transmission costs were higher than those of the Mesa RP30 project. Brookfield Renewable,
developer of the project, has posted a letter of credit that will benefit ALW if the project is not completed or
underproduces. Brookfield Renewable is a large company that owns renewable projects around the world. There is a
high probability for a successful project. Renewable energy comprises 32.5% of ALW's portfolio. With this project,
renewable energy will exceed 80% of the portfolio. After two power agreements mature and drop out of the portfolio,
renewable will total 67% for the next 20 years. ALW's compliance obligation is 60% with a goal of 100% carbon neutral
energy.
In reply to questions from the Board, Utilities Director Robledo indicated the project is located north of I-10. The
turbines are expected to operate for 25 years before needing major overhaul. New turbines can withstand higher wind
speeds than earlier models.
Moved by Board Member Macias, seconded by Board Member Gonzales, to adopt Resolution 2019-UB-05 to approve a
long-term Renewable Power Purchase and Sale Agreement between the City of Azusa and Mesa Wind Power Corporation
for the purchase of 30 Megawatts (MW) of wind energy over a period of 25 years, by the following vote of the Board:
AYES: BOARD MEMBERS: ALVAREZ, ROCHA, GONZALES, MACIAS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: CARRILLO
ABSTAIN: BOARD MEMBERS: NONE
E.CONSENT CALENDAR
Moved by Board Member Rocha, seconded by Board Member Gonzales, to approve the Consent Calendar by the
following vote of the Board:
AYES: BOARD MEMBERS: ALVAREZ (Items E-2 – E-9), ROCHA, GONZALES, MACIAS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: CARRILLO
ABSTAIN: BOARD MEMBERS: ALVAREZ (Item E-1 only)
1.The minutes of the regular meeting of April 22, 2019 were approved as written.
2.The 2018 Power Source Disclosure Program Annual Report and the 2018 Power Content Label were approved;
and the Director of Utilities or his designee was authorized to execute and submit the Power Source Disclosure
Program Attestation Form.
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3.The First Amendment to the Professional Services Agreement (First Amendment) with Northstar Chemical, as a
DBA of Pacific Star Chemical, to provide water treatment chemical and equipment services in an amount not to
exceed $175,000 annually, in accordance with Azusa Municipal Code Section 2-517(a)(24), was approved; and
the Mayor was authorized to execute the First Amendment in a form acceptable to the City Attorney on behalf of
the City.
4.The existing blanket purchase order to procure meter locking rings from Inner-Tite Corporation for Phase II
Implementation of the Advanced Meter Infrastructure Project was amended to the amount of $250,000 for the
acquisition of 14,000 additional locking rings.
5.The Award of Contract for Project CS-01, Azusa Light and Water Customer Service Remodel, to RS
Construction & Development, Inc. of Upland California was approved; and the Mayor was authorized to execute
the document on behalf of the City.
6.The Award of Contract for Water Project W-347, Citrus Avenue and Foothill Boulevard 830 Tie-In, to C.P.
Construction Co., Inc. of Ontario, California was approved; and the Mayor was authorized to execute the Contract
in a form acceptable to the City Attorney.
7.The San Gabriel Valley Municipal Water District (SGVMWD) Interconnect and Site Improvements Project, as
outlined in W-280A Plans and Specifications, was accepted; the Notice of Completion was approved; the Mayor
was authorized to execute the document on behalf of the City; and the City Clerk was authorized to submit the
Notice of Completion for recordation to the Office of the County Recorder of Los Angeles County within ten
days of the Utility Board approval as required by Section 3093 of the California Civil Code.
8.Task Order Number 8 Professional Engineering Services to provide Design & Contract Documents for the
Triangle Flow Control Structure Project W-354 was awarded to Stantec Consulting Services, Inc.; the issuance of
a Purchase Order for Task Order Number 8, for a not-to-exceed price of $27,600 in accordance with Azusa
Municipal Code Section 2-518 – Contracts (c), Master Professional Services Contract was authorized.
9.Professional Engineering Services for the North Reservoir Rehabilitation Project was awarded to Civiltec
Engineering, Inc.; issuance of a purchase order for a not-to-exceed price of $44,430 was authorized; and the
Mayor was authorized to execute in a form acceptable to the City Attorney the Agreement for Professional
Services with Civiltec Engineering, Inc.
F.STAFF REPORTS/COMMUNICATIONS
1.Fiscal Year 2018-2019 Third Quarter Budget Reports for Electric and Water Funds.
Utilities Director Robledo advised that water sales have decreased due to rain. Year-to-date revenues are 82% of budgeted
amounts while expenses are 76% of budgeted amounts. Debt coverage is 1.28. Cash flow has improved in comparison to
the second quarter. Cash reserves for the Water Fund total $23.8 million. In the Electric Fund, retail sales have decreased
1.5% when compared to the prior year. Revenues are 80% of budgeted amounts while expenses are 81% of budgeted
amounts. Debt coverage is 7.91. Cash flow remains positive. Cash reserves total $24.7 million.
G.VERBAL COMMUNICATIONS
1.Power Supply Update
Utilities Director Robledo indicated the DSR2 solar plant is back online as of May 3. Renewables currently comprise
25.4% of the portfolio, an increase from 19% as last reported. ALW is receiving hydroelectric power from the local
facility in San Dimas. With the addition of the Mesa RP30 project, ALW will comply with the acceleration of progress
towards the 60% renewable goal.
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2. Water Supply Update
Utilities Director Robledo related that the outlook for water supply remains good, especially with continued rain. The
water table level remains below average but is recovering. Reservoirs across the state are full.
3.General Policy and Regulatory Updates
Utilities Director Robledo reported SB 200, which proposes a water tax, was killed in the Senate. Revenues from the
proposed tax will be replaced with surplus revenues in the State's General Fund. However, AB 217 remains alive. ALW
is opposing AB 217 through the San Gabriel Valley Water Association. Wildfire legislation remains active. ALW
opposes a proposal to collect monies from ratepayers statewide and deposit them into a trust fund. The trust fund would
support insurance companies that paid claims for wildfire damages. Because ALW has a very low risk of wildfire, ALW
customers would pay into a trust fund that would not benefit them. ALW opposes a proposal to develop pumped energy
storage because all customers in the state would be required to pay an uplift charge for the project, but not all customers
would receive a benefit from the project.
In reply to a Board Member's question, Utilities Director Robledo disclosed that all customers would pay $1 into the
wildfire mitigation trust fund. In essence, customers in the southern portion of the state would pay for wildfires that occur
in the northern portion of the state.
H.CLOSED SESSION
None
ADJOURNMENT
The meeting was adjourned by consensus of the Utility Board.
TIME OF ADJOURNMENT: 6:55 P.M.
__________________________________________
CITY CLERK/SECRETARY
UB-23