HomeMy WebLinkAboutMinutes - November 22, 2021 - UBCITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD
MONDAY, NOVEMBER 22, 2021– 6:30 P.M.
Chair person: Jesse Avila, Jr.
Vice Chair person: Andrew N. Mendez
Board Member: Robert Gonzales
Board M ember: Edward J. Alvarez
Board Member: Dennis Beckwith
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
& Water 1st Floor Conference Room located at 729 N. Azusa, 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: BECKWITH, ALVAREZ, GONZALES, MENDEZ, AVILA Jr.
ABSENT: BOARD MEMBERS: NONE
Pledge to the flag was led by Board Member Beckwith.
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 Adminstration & Finance Manager Smith, Deputy City Manager Scaia, Chief Bertelsen, Chief Deputy
City Clerk Garcia
A. PUBLIC PARTICIPATION
None
B. UTILITIES DIRECTOR COMMENTS
Utilities Director Robledo reported that operations are going well and there were no significant power outages reported
last month. There has only been 0.4 inches of rain since the last meeting, the area is still in drought condition. There have
been coastal rains which will help the State of California. Watermaster purchases continue. Cypress water transmission
was cut-over November 11. The paving project is about ninety percent (90%) complete. The North Tank coating project is
forty percent (40%) complete.
Utilities Director Robledo relayed to the Board that he has announced his retirement to the City Manager effective the end
of the year .
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C. UTILITY BOARD MEMBER COMMENTS
Vice-Chair Mendez spoke of his gratitude to Director Robledo’s years of service, congratulated him on the retirement,
stated the honor it was to work with him, and wished him the best of luck.
Board Member Alvarez wished everyone and safe and happy Thanksgiving and expressed his surprise at the news of
Director Robledo’s retirement, thanked him for his service, spoke of the excellent job the Director has done and wished
him the best of luck.
Board Member Gonzales stated the Director’s retirement is well deserved and appreciated everything he accomplished for
the community and wished the Director well.
Board Member Beckwith added that while he was new to the Board he was glad to have had the opportunity to get to
know Director Robledo and also wished him well with his retirement.
Chair Avila explained to Director Robledo how much he will be missed because of the compassion he has shown the
community while serving as the Director of Utilities; and the excellent job the Director did while in that role with the
accomplishment’s he was able to achieve. Chair Avila stated he was proud of the Director and excited for the future of
the Department because of the team the Director is leaving behind.
D. SCHEDULED ITEMS
1. None
E. CONSENT CALENDAR
Board Member Alvarez pulled Item E -4 from the consent calendar.
Moved by Board Member Alvarez, seconded by Board Member Beckwith, to approve Items 1-3 and 5 of the Consent
Calendar by the following vote of the Board:
AYES: BOARD MEMBERS: BECKWITH, ALVAREZ , GONZALES, MENDEZ, AVILA Jr.
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
ABSTAIN: BOARD MEMBERS: NONE
1. Minutes of the Utility Board Meeting on October 25 , 2021 were approved as written.
2. The Cancellation of the December 28, 2021 Regular Utility Board Meeting was approved;
3. The Award of bid contract Project LD2021-03 to TSR Construction & Inspection in the amount not -to-exceed
$151,140 was approved; and the Mayor is authorized to execut e the Contract in a form acceptable to the City
Attorney.
5. The First Amendment to the Long-Term Power Purchase Agreement between City of Azusa and San Gabriel
Valley Municipal Water District was approved.
SPECIAL CALL ITEM
Deputy City Manager Scaia responded to a question regarding Item E-4, stating this is for a new project related to a
request for a new storage facility. Utility Director Robledo explained this is an opportunity for the city to update
equipment based on the request to expand the existing line to the new facility.
Moved by Board Member Alvarez, seconded by Board Member Gonzales, to approve Item 4 of the Consent Calendar by
the following vote of the Board:
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AYES: BOARD MEMBERS: BECKWITH, ALVAREZ, GONZALES, MENDEZ, AVILA Jr.
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
ABSTAIN: BOARD MEMBERS: NONE
4. A Certificate of Acceptance of Grant of Permanent Easement for Electric utility purposes from property owner for
site address 900 W Foothill Boulevard in the City of Azusa, was approved; Resolution No. 2021-UB-10 was
adopted; and the City Clerk is authorized to file said easement documents with the Office of the Los Angeles
County Recorder.
F. STAFF REPORTS/COMMUNICATIONS
1. Fiscal Year 2021-22 First Quarter Budget Reports for Water and Electric Funds
There was a one-time revenue for leas ing rights of $1.5 million dollars that was not included in the budget as the
leases are expected to expir e, the revenue fell under the one-time revenue category. The second one-time revenue
of $1 million dollars was the System Development Fee for the Vulcan development. The fee is based on the size
of the development, they are currently at half-production of what Miller was using. The brewing facility is
currently operating under Pabst; however, they are brewing for other companies.
Utilities Director Robledo advised the water financial reports for the first quarter indicate a positive cash flow of
$4.1 million, revenues are at 35% of the 2021 budget, and Operating Expenses are at 26% of the budget. Retail
sales are down 2.5% from last year; cash reserves are steady at $26.2 million with a minimum of $19.6 million.
There is a debt services coverages of 4.02% with a 1.25 minimum.
Utilities Director Robledo advised that water financial reports for the first quarter indicate a positive cash flow of
$3.8 million, revenues are at 33% of the 2021 budget, and Operating Expenses are at 24% of the budget; retail
sales are reduced by 2.4% as compared to this time last year; cash reserves are at $24.1 million (with a $13.5
million minimum), with a debt service coverage of 16.43% (1.10 minimum).
G. VERBAL COMMUNICATIONS
1. Power Supply Update
Utilities Director Robledo indicated that renewables comprise 34.3% of power resources through October; the
end-of-year target for renewables is 35.8%; the Retail Load January – October 2021 for market purchases is
32.8%, Paloverde load is 7.8%, Hoover is 1.6% and Lodi is at 17.2%. There has been a spike in Natural Gas
prices as US gas producers are responding to a tight global gas market by increasing LNG exports and the US had
glut of domestic gas which makes US recognized as a driver of natural gas prices; other regions continue to rely
on cheaper coal fuel rather than being exposed to new gas spike; Nuclear may still be cost effective as per the
MIT/Stanford November 2021 report as they suggest deferring Diablo Canyon retirement to 2025 which would
decrease our reliance on natural gas and maintain reliability, $1 billion Seismic upgrades would be required at
Diablo Canyon before making that switch; however, according to the report the benefits would out weigh the
costs; staff will continue monitoring Diablo Canyon as the outcome will greatly affect future markets. The rains in
the north are helping and they are expecting above average rains in the Pacific northwest through the winter. The
renewable hydro-plan in San Dimas was renewed at the existing terms. That energy is priced based on the gas
market.
2. Water Supply Update
Utilities Director Robledo related that the groundwater basin level is currently 183 feet, a decrease of 0.8 feet
from the prior month; the local reservoirs were lowered to capture storm water and are at their minimum levels;
rainfall for the year totals only 7.68 inches versus a 19.77 inches average from last season. There has been 1.37
inches of rainfall for the season to date; local reservoirs are at minimum levels. California is currently in a severe
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drought condition and the Governor announced a Statewide Drought Emergency on October 19th. Azusa Water
Conservation Measures are in effect.
H. CLOSED SESSION
1. None
I. ADJOURNMENT
The meeting was adjourned by consensus of the Utility Board.
TIME OF ADJOURNMENT: 6:54 P.M.
__________________________________________
CITY CLERK/SECRETARY