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Home My WebLink AboutE-1.1. Utility Board Minutes 04-26-2021CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD MONDAY, APRIL 26, 2021– 6:30 P.M. Chairperson: Uriel E. Macias Vice Chairperson: Jesse Avila, Jr. Board Member: Robert Gonzales Board Member: Edward J. Alvarez Board Member: Andrew Mendez 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 via Zoom virtual meeting in accordance with Executive Order N-29-20. Chairperson Macias called the meeting to order at 6:30 P.M. ROLL CALL: Roll call was taken by Secretary Cornejo. PRESENT: BOARD MEMBERS: MACIAS, AVILA, GONZALES, ALVAREZ, MENDEZ ABSENT: BOARD MEMBERS: NONE Pledge to the flag was led by Vice Chairperson Avila. ALSO PRESENT Elected Officials: Secretary Cornejo City Attorney: Jeff Ferre Staff Members: Utilities Director Robledo, Assistant Director of Electric Operations Vuong, Assistant Director of Water Operations Macias, Assistant Director of Customer Care & Solutions Holmes, Assistant Director of Resource Management Torres, Senior Management Analyst Smith, City Manager Gonzalez, Deputy City Manager DeAnda-Scaia, Captain Grant, Chief Deputy City Clerk Garcia A.PUBLIC PARTICIPATION None. B.UTILITIES DIRECTOR COMMENTS Utilities Director Robledo reported no significant service interruptions or changes; rehabilitation of Well 7 to increase production will be complete in May 2021; replacement of the Cypress water transmission and the triangle valve will begin in June 2021; 212 commercial and 185 residential streetlight fixtures have been replaced with LED fixtures; 166 cars dropped off 10,800 pounds of paper at the April 17, 2021 Shred-a-Thon; and the next Shred-a-Thon is scheduled for September 2021. Utilities Director Robledo responded to a question, stating a drought update will be presented later in the meeting. Approved Utility Board 5/24/21 PAGE 2 – 04/26/2021 C. UTILITY BOARD MEMBER COMMENTS Board Member Gonzales thanked Chairperson Macias for leading the Utilities Board for the past year. D. SCHEDULED ITEMS 1. Election of Utility Board Officers Moved by Chairperson Macias, seconded by Board Member Gonzales, to elect Vice Chairperson Avila as Chairperson and Board Member Mendez as Vice Chairperson and to affirm the service of the City Clerk as Secretary by the following vote of the Board: AYES: BOARD MEMBERS: MENDEZ, ALVAREZ, GONZALES, AVILA, MACIAS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE E. CONSENT CALENDAR Moved by Board Member Gonzales, seconded by Board Member Alvarez, to approve the Consent Calendar by the following vote of the Board: AYES: BOARD MEMBERS: MACIAS, ALVAREZ, GONZALES, MENDEZ, AVILA NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE 1. The minutes of the March 22, 2021 meeting of the Utility Board were approved as written. 2. A Professional Services Contract (PSA) in the not-to-exceed amount of $49,950 for full implementation of Supervisory Control and Data Acquisition System, specialized computer software and hardware, for Kirwall and Azusa Substations was awarded to Etap Inc. under Azusa Municipal Code Section 2-517(a)(22); and the Mayor was authorized to execute the PSA in a form acceptable to the City Attorney. 3. A Purchase Order to Raider Painting in the not-to-exceed amount of $45,000 for painting services at the Joseph F. Hsu Water Filtration Plant was approved; and the City Manager was authorized to execute a Letter of Agreement with Raider Painting in a form acceptable to the City Attorney. 4. The Grant Agreement with the San Gabriel Valley Municipal Water District in the amount of $100,000 for the low-income COVID Assistance Grant Program was approved; and the Director of Utilities was authorized to execute the Grant Agreement in a form acceptable to the City Attorney. 5. Task Order 11 for Aspan Well Reactivation Feasibility Technical Memorandum under the existing Master Professional Services Agreement in the not-to-exceed amount of $27,500 was awarded to Stetson Engineers, Inc. F. STAFF REPORTS/COMMUNICATIONS With the consent of the Board, Chairperson Avila announced Item F-2 will be heard prior to Item F-1. 2. Annual SB 1037 Report Utilities Director Robledo advised that ALW saved 3 million kilowatt hours of electricity through customers' use of energy-efficient lighting; and with a savings of 1.3% of retail sales, ALW exceeded its goal of 1%. PAGE 3 – 04/26/2021 Moved by Board Member Gonzales, seconded by Vice Chairperson Mendez, to receive and file the Annual SB 1037 Report by the following vote of the Board: AYES: BOARD MEMBERS: MACIAS, ALVAREZ, GONZALES, MENDEZ, AVILA NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE 1. Review of the Electric Fund Cash Reserves Policies Utilities Director Robledo discussed the 2010 Electric Fund Reserve Policy; revenue reductions; potential fund balance in July 2022; the Reserve Fund for Stranded Investment; no projects with stranded investment risk; current long-term power resources; no further need for the fund; and Standard & Poor's global electric bond rating factors that contribute to ALW's AA- rating. Utilities Director Robledo responded to questions, stating absent a transfer from the Reserve Fund for Stranded Investment, the Electric Fund Reserve balance will fall below the minimum amount set by the City Council; without a transfer and revenues recovering from COVID, electric rates would have to increase to maintain reserves and fund the capital program; his preference not to decrease funding for the capital program or to increase rates; in 2007, the Council found that the Reserve Fund for Stranded Investment was no longer needed and recommended a transfer of its funds, but failed to repeal the ordinance establishing the Reserve Fund; the plan is to transfer funds and not increase rates; the base electric rate has not changed in approximately ten years; the power cost adjustment fluctuates; and debt ratio applies to income rather than reserves. Board Member Macias recalled that the Council decided not to transfer funds in 2007 because of upcoming renewable energy projects and the automated metering infrastructure (AMI) project; the Council can modify the minimum balance if necessary; and a preference not to utilize the Reserve Fund for Stranded Investments for pension obligations. Vice Chairman Mendez shared Board Member Macias' concern. Board Member Alvarez noted that the Council chose to reduce its obligation to CalPERS with the knowledge of these reserve funds; the reserve fund is not needed; and a preference to accept staff's recommendation. G. VERBAL COMMUNICATIONS 1. Power Supply Update Utilities Director Robledo indicated renewable energy comprises 25.8% of power resources year-to-date; ALW is on track to meet its 35.5% target by the end of 2021; banked renewable credits are available for any shortfall, which staff does not anticipate; hydroelectric resources have been impacted by drought; a greenhouse gas compliance audit is underway; and CEQA approval for the Mesa Wind project is expected in May 2021 with operations expected to begin in the second quarter of 2022. Utilities Director Robledo responded to a question, stating the 400 existing wind turbines generate about 25 kilowatts each while the 11 new turbines generate about 3 megawatts each. 2. Water Supply Update Utilities Director Robledo advised that the level of the groundwater basin has fallen 2.1 feet in the past month; rainfall is well below average resulting in the fourth driest year on record; ALW's State Water Project allocation has been reduced to 5%; to meet water demand over the summer months, ALW can purchase water from the Watermaster, purchase water from the Municipal Water District (MWD) through the Upper San Gabriel Valley Municipal Water District (SGVMWD), or accelerate restoration of the Aspan well; water conservation messaging will increase; the water basin has fallen below the minimum level of 200 feet; and most reservoir levels are below average. PAGE 4 – 04/26/2021 Utilities Director Robledo responded to questions, stating water conservation rules have not been lifted; failure to comply can result in a citation; at this time, staff will continue to monitor conditions and enforce regulations; regulations were strictly enforced about five years ago; water rates increased even though residents met or exceeded conservation targets; plans to bring recycled water from the City of Carson are several years away; and recycled water is expensive but less expensive than desalinated water. H. CLOSED SESSION None. I. ADJOURNMENT The meeting was adjourned by consensus of the Utility Board. TIME OF ADJOURNMENT: 7:25 P.M. __________________________________________ CITY CLERK/SECRETARY