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HomeMy WebLinkAboutMinutes - February 27, 2023 - UB CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD MONDAY, FEBRUARY 27, 2023– 6:30 P.M. Chair person: Andrew Mendez Vice Chair person: Dennis Beckwith Board M ember: Robert Gonzales Board M ember: Edward J. Alvarez Board M ember: Jesse Avila, Jr. 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 Auditorium located at 729 N. Azusa Avenue, Azusa, California. Chair person Andrew N. Mendez 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, BECKWITH, MENDEZ ABSENT: BOARD MEMBERS: NONE The pledge to the flag was led by Board Member Jesse Avila Jr . ALSO PRESENT Elected Officials: Secretary Cornejo City Attorney: Jeff Ferre Staff Members: City Manager Sergio Gonzalez, Assistant General Manager of Electric Operations Hien Vuong, Assistant General Manager Power Resources Richard Torres, Assistant General Manager Water Operations Melissa Barbosa , Environmental Programs Manager Paul Reid, Administrative and Finance Manager Danny Smith, Captain Robert Landeros, Chief Deputy City Clerk Adrian Garcia. A. PUBLIC PARTICIPATION None B. GENERAL MANAGER COMMENTS Assistant General Manager of Electric Operations Hien Vuong reported that General Manager Tikan Singh was out on family maternity leave, thanked staff for their help in preparing him for the meeting and reported that the water division has completed their contribution to the Public Works Arrow Highway Landscape Median Project. They installed seven new water services to the corridor. C. UTILITY BOARD MEMBER COMMENTS None PAGE 2 – 2/27/23 D. SCHEDULED ITEMS 1. Election of Utility Board Officers Recommendation: 1) Elect by majority vote Dennis Beckwith as Chairperson and Edward J. Alvarez as Vice Chairperson to serve as officers of the Utility Board, and 2) Affirm that the City Clerk will serve as Secretary Board Member Gonzales moved, seconded by Chairperson Mendez, to approve Dennis Beckwith as Chairperson and Edward J. Alvarez as Vice Chairperson to serve as officers of the Utility Board; and that the City Clerk will serve as Secretary for a period of one year. AYES: BOARD MEMBERS: AVILA Jr., ALVAREZ, GONZALES, BECKWITH, MENDEZ NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE E. CONSENT CALENDAR 1. Minutes of the Utility Board Meeting on January 23, 2023 were approved. 2. Approve a purchase order with D&R Office Works, Inc. for office furniture in the amount of $88,942.04 with a 10% contingency not-to-exceed $8,894.20 was approved. 3. Approve a purchase order with JJ’s Construction in an amount not -to-exceed $175,580.00 and a 10% contingency not -to-exceed $17,558.00 for potential change orders as needed was approved. Board Member Gonzales moved, seconded by Board Member Mendez, to approve Items 1-3 of the Consent Calendar: Unanimously passed 5-0. AYES: BOARD MEMBERS: AVILA Jr., ALVAREZ, GONZALES, BECKWITH, MENDEZ NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: NONE ABSTAIN: BOARD MEMBERS: NONE F. STAFF REPORTS/COMMUNICATIONS 1. Fiscal Year 2022-23 Second Quarter Budget Reports for Water and Electric Funds Finance Manager Danny Smith provided information regarding the Fiscal Year 2022-2023 second quarter financial reports for Water and Electric Division funds and responded to Board Member questions. Water Financials had a positive cash flow of $3.3 million dollars with Revenues at 49% of the budget; Operating Expenses at 48% of the budget; Second quarter retail sales are down 7.7% from the second quarter last year; Cash Reserves were at $25.9 million with a minimum requirement of $19.6 million; and debt services coverage of 1.40. Electric Financials had a positive cash flow of $2.5 million dollars with Revenues at 57% of the budget; Operating Expenses at 54% of the budget; Second Quarter retail sales are up 6.5% from the second quarter last year; Cash Reserves were at $27.3 million dollars with a minimum requirement of $13.5 million; debt services coverage of 5.39. Item was received and filed. PAGE 3 – 2/27/23 G. VERBAL COMMUNICATIONS 1. Power Supply Update Assistant General Manager Power Resources Richard Torres reported the total substation metered power consumption was 255,833 MWh. The Renewable fleet generation in January included 7% wind, .01% Small Hydro, and 9% Solar. Mesa Wind Update showed the turbines/rotor blades are at Mojave railyard, the Turbine manufacturer and developer have been discussing transport logistics to the site and determining the safe time window for installation of the turbines since the windiest months are approaching and this may cause delays. A site visit is planned for Wednesday May 3, 2023 at 9:00 a.m. and an Agenda for the visit is in the meeting packet. 2. Water Supply Update Assistant General Manager Water Operations Melissa Barbosa reported 25.73” of rain fell in January and February. Average yearly rainfall is approximately 18 inches. Local ground water elevation raised 8.8 feet from last month due to the Atmospheric Rivers that have been taking place. Optimum operating level is over 200 feet. The water in each dam is muddy so it can’t be used at the treatment plants, but the levels are good for recharging the aquifer. LA County has a five- year emergency declaration to clean out the dams each year . Lake Oroville is at an all-time high. State water pump allocation was at 5% in December, 30% at the end of January and currently at 35% in February. Azusa Light & Water staff answered Board Member questions. H. CLOSED SESSION None I. ADJOURNMENT The Regular meeting of the Utility Board was adjourned by consensus of the Utility Board. TIME OF ADJOURNMENT: 6:56 P.M. __________________________________________ CITY CLERK/SECRETARY