HomeMy WebLinkAboutMinutes - September 27, 2021 - UBCITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD
MONDAY, SEPTEMBER 27, 2021– 6:30 P.M.
Chairperson: Jesse Avila, Jr.
Vice Chairperson: Andrew N. Mendez
Board Member: Robert Gonzales
Board Member: Edward J. Alvarez
Board Member: Vacant
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 L&W
Conference Room located at 729 N. Azusa Ave., Azusa, California.
Chairperson Avila called the meeting to order at 6:30 P.M.
ROLL CALL: Roll call was taken by Secretary Cornejo.
PRESENT: BOARD MEMBERS: ALVAREZ, GONZALES, MENDEZ, AVILA
ABSENT: BOARD MEMBERS: NONE
Pledge to the flag was led by City Manager Gonzalez.
ALSO PRESENT
Elected Officials: Secretary Cornejo
City Attorney: Jeff Ferre
Staff Members: Utilities Director Robledo, Assistant Director of Water Operations Macias, Assistant Director of
Customer Service Holmes, Assistant Director of Power Resources Torres, Assistant Director of Electric Operations Vuong,
Utilities Admin and Finance Manager Smith, City Manager Gonzalez, Chief Bertelsen, Chief Deputy City Clerk Garcia
A. PUBLIC PARTICIPATION
None
B. UTILITIES DIRECTOR COMMENTS
Utilities Director Robledo reported a power outage occurred on September 10, 2021 due to a lightning strike and affected
approximately 900 customers; ALW continues to purchase water; two experienced apprentice Line Mechanics and one
Water Distribution Worker will be hired; the Cypress water transmission line project is 65% complete; and the North Tank
coating project is 20% complete.
Utilities Director Robledo responded to questions, stating the Cypress water transmission line is more than 100 years old,
and the steel pipe is being replaced with a pipe made of ductile iron.
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C. UTILITY BOARD MEMBER COMMENTS
Utilities Director Robledo responded to questions, stating 157 cars dropped off 9,120 pounds of material at the shred event;
regarding recent resignations, employees did not leave the City of Azusa for employment with another city, the new
apprentice employees being hired are experienced; there have not been any problems obtaining qualified applicants, and 13
of the 79 applicants were interviewed.
D. SCHEDULED ITEMS
1. None
E. CONSENT CALENDAR
Board Member Gonzales removed Item E-2 from the consent calendar.
Moved by Board Member Gonzales, seconded by Board Member Alvarez, to approve Items 1 and 3-5 of the Consent
Calendar by the following vote of the Board:
AYES: BOARD MEMBERS: ALVAREZ, GONZALES, MENDEZ, AVILA
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
ABSTAIN: BOARD MEMBERS: NONE
1. Minutes of the Utility Board Meeting on July 26, 2021 were approved as written.
3. The Award of a Relays Replacement Contract to Siemens Industry Inc. in the amount not-to-exceed $164,215.17
was approved; and the City Manager was authorized to execute the Agreement for Maintenance Services in a form
acceptable to the City Attorney.
4. A sole source purchase order with Systems & Software, Inc., as provided under Municipal Code Sec. 2-520(b)(2)
in an amount not-to-exceed i) $96,532 for the purchase of Oracle Database Enterprise Edition and ii)$17,407 per
year in increased maintenance costs to support the database server was approved.
5. A sole source purchase order with Harris Computer Corporation as provided under Municipal Code Sec. 2-520(b)(2)
in an amount not-to-exceed i) $113,790 for the purchase of updated MDMS modules and ii) $14,460 per year in
increased maintenance costs for ongoing software support for these additional modules was approved.
SPECIAL CALL ITEM
City Manager Gonzalez responded to a question regarding Item E-2, stating staff will coordinate ALW projects with adjacent
jurisdictions' projects to ensure excavation of the same area occurs once.
Moved by Board Member Gonzales, seconded by Chairperson Avila, to approve Item 2 of the Consent Calendar by the
following vote of the Board:
AYES: BOARD MEMBERS: ALVAREZ, GONZALES, MENDEZ, AVILA
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
ABSTAIN: BOARD MEMBERS: NONE
2. Plan and specifications for project LD2021-03 were approved; and the advertisement and solicitation of bids for
Project LD2021-03 – Furnishing and Installing of Underground Electric Substructures were authorized.
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F. STAFF REPORTS/COMMUNICATIONS
1. Fiscal Year 2020-21 Fourth Quarter Budget Reports for Water and Electric Funds
Utilities Director Robledo advised that water financial reports for the fourth quarter indicate net operating income of $7.6
million, cash reserves of $27.9 million, and debt service coverage of 1.84; automated metering infrastructure (AMI) is
accurately measuring water usage; and staff will prepare a five-year plan to replace leaking water lines and consider
financing plans; and electric financial reports indicate net operating income of $5.1 million, a 0.4% reduction in retail sales
over the prior year, cash reserves of $24.9 million, and debt service coverage of 5.5.
G. VERBAL COMMUNICATIONS
1. Power Supply Update
Utilities Director Robledo indicated that renewables comprise 35.7% of power resources; the end-of-year target for
renewables is 35.8%; staff published ALW's Power Content Label; ALW has received greenhouse gas allowances for 2022;
revenue from the auction of allowances will be used to offset renewable purchases; an extension of the San Dimas
hydroelectric contract will be presented to the Utility Board in October 2021; the Mesa Wind Project is expected to begin
commercial operations in the fall of 2022; peak loads for power over the summer were normal; the California Independent
System Operator (CAISO) reported a successful summer with no rolling blackouts; and power supply in 2022 will be
effected by a dry winter, retirement of natural gas plants, and battery storage projects.
2. Water Supply Update
Utilities Director Robledo related that the groundwater basin level is currently 185.3 feet, a decrease of 2.35 feet from the
prior month; rainfall for the year totals only 7.68 inches; local reservoirs are at minimum levels, and reservoir levels across
the state are at or below minimum levels; ALW's water allocation is 5%; ALW began purchasing water from the
Metropolitan Water District (MWD)on July 1, 2021; conservation messaging has been provided to the public through bus
shelter posters, bill inserts, email, and social media; and the level of the key well is below the operating level.
H. CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Government Code Section 549456.9
Name of case: Cities of Anaheim, Azusa, Banning, Colton, Pasadena, and Riverside, California (collectively, the
"Six Cities"), California ISO and other parties; FERC Docket No. ER04-835 and in the D.C. Circuit, consolidated
in Docket No. 20-1236
I. ADJOURNMENT
The meeting was adjourned by consensus of the Utility Board.
TIME OF ADJOURNMENT: 7:10 P.M.
__________________________________________
CITY CLERK/SECRETARY