HomeMy WebLinkAboutF-2.1. 11.27 UB Draft minutesCITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD
MONDAY, NOVEMBER 27, 2023– 6:30 P.M.
Chairperson/Mayor Pro-Tem: Dennis Beckwith
Vice Chairperson/Councilmember: Edward J. Alvarez
Board Member/Mayor: Robert Gonzales
Board Member/Councilmember: Andrew N. Mendez
Board Member/Councilmember: Jesse Avila, Jr.
Secretary/City Clerk: Jeffrey Lawrence Cornejo, Jr.
The Utility Board of the City of Azusa met in regular and closed session, at the above date and time, in the
Azusa Light & Water Building First Floor Conference Room located at 729 N. Azusa Avenue, Azusa,
California.
Chairperson Beckwith called the meeting to order at 6:30 P.M.
ROLL CALL: Roll call was taken by Secretary Cornejo.
PRESENT: BOARD MEMBERS: AVILA Jr., ALVAREZ, GONZALES, MENDEZ, BECKWITH
ABSENT: BOARD MEMBERS:
The pledge to the flag was led by Deputy City Manager Nico De Anda-Scaia.
ALSO PRESENT
Elected Officials: Secretary Cornejo
City Attorney: Jeff Ferre
Staff Members: Deputy City Manager Nico De Anda-Scaia, General Manager Tikan Singh, Assistant
General Manager of Electric Operations Hien Vuong, Assistant General Manager Power Resources Richard
Torres, Assistant General Manager Water Operations Melissa Barbosa, Assistant General Manager
Customer Care & Solutions Alicia Holmes, Environmental Programs Manager Paul Reid, Utilities Admin
& Finance Manager Danny Smith, Captain Robert Landeros, Deputy City Clerk Brenda Hernandez.
PUBLIC PARTICIPATION
None
CLOSED SESSION
1.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Paragraph (1) of Subdivision (d) of Government Code Section 54956.9
Approved
Utility Board
01/22/2024
PAGE 2 – 11/27/23
Name of Case: In re: Aqueous Film-Forming Foams Products Liability Litigation, Case No. 2:18-mn-
2873-RMG
Chairperson Beckwith called the Regular Utility Board meeting to order at 6:30 P.M.
City Attorney Jeff Ferre stated that the Utility Board met in Closed Session on the case listed above, Board
Member/Mayor Gonzales motioned, seconded by Board Member/Councilmember Mendez and passed by
a vote of 5-0 to remain in the litigation settlement and directed Counsel and staff to file the appropriate
documentation.
GENERAL MANAGER COMMENTS
General Manager Tikan Singh reported an Alameda circuit outage on November 24, 2023, at 8 p.m. The
outage was due to failed underground equipment and over one thousand customers were impacted.
Customers on First and Ninth Street between Angeleno and Cerritos Avenues were impacted. Faulty
equipment was replaced, and power was restored to all customers at 1:45 a.m. The annual Holiday Light
exchange at the Festival of Lights & Holiday Concert is December 9, 2023, between 4 p.m. and 8 p.m. Mr.
Singh responded to Board Member questions.
UTILITY BOARD MEMBER COMMENTS
None
SCHEDULED ITEMS
None
CONSENT CALENDAR
Chair Beckwith asked if any Board members wished to pull an item.
1. Ratify the use of $748,852 from the Azusa Light & Water (ALW) Public Benefit Funds for the
Library energy efficiency upgrades portion of the $3,248,847 local match required to meet the
condition of the California State Library grant agreement was approved.
2. Cancellation of the scheduled December 26, 2023 Regular Utility Board meeting was approved.
3. The purchase of eight (8) 2019 Chevy Bolt electric vehicles; and 2) Authorize the City Manager,
or designee, to issue a purchase order to MK Smith Chevrolet in an amount not-to-exceed
$119,819.68 was approved.
4. An increase in the blanket purchase order for Citigroup Energy from $8,000,000 to $10,000,000
was approved.
MOTION by: Board Member/Councilmember Avila Jr., seconded by Vice Chair/Councilmember Alvarez,
to approve Items 1-4 of the Consent Calendar: Unanimously passed 5-0.
PAGE 3 – 11/27/23
AYES: BOARD MEMBERS: AVILA Jr., GONZALES, ALVAREZ, MENDEZ, BECKWITH
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
ABSTAIN: BOARD MEMBERS: NONE
Motion Passed 5-0-0
STAFF REPORTS/COMMUNICATIONS
1. Fiscal Year 2022-23 Fourth Quarter Budget Reports for Water and Electric Funds
Recommendation: 1) Receive and file Fiscal Year 2022-23 4th Quarter Budget Reports for Water
and Electric funds.
Administrative and Finance Manager Daniel Smith reported Fiscal Year 2022-23 Fourth Quarter
Budget Reports for Water and Electric Funds. Fourth Quarter (Q4) report consists of July 2022
through June 2023. Revenues for the water division were at eighty-seven percent of the budget and
Operating Expenses were at ninety-one percent of the budget. Retail Sales through Q4 are down
11.7% compared to Q4 of last year. There was a decrease in Cash Reserves of $1.1 million. Cash
Reserves are at $21.2 million with a $19 million minimum required. Debt service coverage is at
1.55 with a 1.25 minimum. Revenues for the electric division were at ninety-five percent of the
budget and Operating Expenses were at eighty-one percent of the budget. Retail Sales through
Quarter 4 are up 1.6 percent compared to Q4 last year. There was a change in Cash Reserves of
$2.8 million. Cash Reserves are $26.9 million and have a $13.5 million minimum, and Debt Service
coverage of 10.61 with a 1.10 minimum.
Administrative and Finance Manager Smith and staff responded to Board Member questions.
VERBAL COMMUNICATIONS
1. Power Supply Update
Assistant General Manager Power Resources Richard Torres reported all eight turbines are
assembled and walkdown inspections are ongoing. Initial synchronization is expected in mid-
December in which there will be an initial seventy-two-hour test for communications. Next, there
will be a test energy phase of thirty days. Commercial Operation is deemed after the test energy
phase. Final punch list items include forecasting test energy and CAISO test acceptance. Palo Verde
Nuclear Generating Station Unit 1 Refueling Outage began October through early November 2023.
Units 1-3 undergo refueling/maintenance every eighteen months. The operating license for the plant
is eligible for renewal in 2027. The power plant is deemed to have an estimated useful life of one-
hundred years. The resource will be able to be deemed a reliable zero-carbon source in the future.
Regional assessment by Reliability Council (NERC) places the west in good shape for the winter.
Staff will be integrating the new wind plant, modeling expected seasonal output and reassessing
remaining energy needs. An updated energy risk policy is forthcoming for Utility Board (UB)
approval.
PAGE 4 – 11/27/23
2. Water Supply Update
Assistant General Manager Water Operations Melissa Barbosa reported 0.31 inches of rain in
October 2023 and 0.87 inches in November 2023. Total rain to-date is 1.18 inches. The Key Well
currently sits within operating range at 227.7 feet. San Gabrial Valley Municipal Water District
(SGVMWD) has a balance of 17, 915 acre feet left to deliver from the 100% allocation.
Azusa Light & Water staff answered Board Member questions.
ADJOURNMENT OF THE AZUSA UTILITY BOARD
The Regular meeting of the Utility Board was adjourned by consensus of the Utility Board.
TIME OF ADJOURNMENT: 7:32 P.M.
__________________________________________
CITY CLERK/SECRETARY