HomeMy WebLinkAboutMinutes - January 22, 2024 - UBCITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD
MONDAY, JANUARY 22, 2024– 6:30 P.M.
Chairperson: Dennis Beckwith
Vice Chairperson: Edward J. Alvarez
Board Member: Robert Gonzales
Board Member: Andrew N. Mendez
Board Member: Jesse Avila, Jr.
Secretary: 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 City Clerk Cornejo.
ALSO PRESENT
Elected Officials: Secretary Cornejo
City Attorney: Jeff Ferre
Staff Members: City Manager Sergio Gonzalez, General Manager Tikan Singh, Assistant General
Manager of Electric Operations Hien Vuong, 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, Chief Deputy City Clerk Adrian Garcia.
PUBLIC PARTICIPATION
None
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL
Name of Case: In re: Praxedes E. Running, Praxedes E. Running Trust v. City of Azusa et al., Second
District Court of Appeal Case No. B333843
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City Attorney Jeff Ferre reported to the Utility Board met in closed session, and there was no reportable
action.
REGULAR UTILITY BOARD MEETING
Chairperson Beckwith called the Regular meeting to order at 6:30 P.M.
City Attorney Ferre reported there were no reportable actions from the Closed Session.
GENERAL MANAGER COMMENTS
General Manager Singh reported that the maintenance work on the electrical breakers at substation
commenced last week and is anticipated to conclude within three months.
UTILITY BOARD MEMBER COMMENTS
Chairperson Beckwith stated that it has been an honor to serve as Chairperson.
SCHEDULED ITEMS
1. Election of Utility Board Officers
Recommendation: 1) Elect by majority vote Edward J. Alvarez as Chairperson and Jesse Avila, Jr. as
Vice Chairperson to serve as officers of the Utility Board; and 2) Affirm that the City Clerk will serve as
Secretary.
City Clerk Cornejo noted that nothing currently states the Mayor cannot hold the position of Chairperson
or Vice Chairperson.
MOTION by Board Member Gonzales, seconded by Board Member Mendez to elect Edward J. Alvarez
as Chairperson and Jesse Avila, Jr. as Vice Chairperson, and affirm that City Clerk will serve as Secretary.
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
CONSENT CALENDAR
Chair Alvarez asked if any Boardmembers wished to pull an item. Board Member Beckwith pulled Item
4.
1. Minutes of the Utility Board meeting dated October 23, 2023 were approved as written.
2. Minutes of the Utility Board meeting dated November 27, 2023 were approved as written.
3. A budget amendment to the Water Division’s Operation and Maintenance Fund in the total amount
of $250,000 to support legal fees for the remainder of FY 2023-2024 was approved.
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4. Waive the competitive purchase requirements pursuant to Section 2-521 (a), Article VII, Chapter
2 of the Azusa Municipal Code (Cooperative and Piggyback Purchasing); and a Purchase Order to Haaker
Equipment Company, in an amount not-to-exceed $760,287.30, including sales tax and delivery charges,
for a Truvac CNG HXX Vacuum Excavator under Sourcewell Cooperative Purchasing Agreement –
Contract #101221-VTR was moved to Special Call.
MOTION by Board Member Beckwith, seconded by Vice Chair Avila, Jr., to approve Items 1-3 of the
Consent Calendar.
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
SPECIAL CALL
4. Waive the competitive purchase requirements pursuant to Section 2-521 (a), Article VII, Chapter
2 of the Azusa Municipal Code (Cooperative and Piggyback Purchasing); and a Purchase Order to Haaker
Equipment Company, in an amount not-to-exceed $760,287.30, including sales tax and delivery charges,
for a Truvac CNG HXX Vacuum Excavator under Sourcewell Cooperative Purchasing Agreement –
Contract #101221-VTR
Board Member Beckwith requested that staff provide a brief background of the item. Assistant General
Manager Water Operations Melissa Barbosa provided the staff update on the item and responded to
Board Member questions.
MOTION by Board Member Beckwith, seconded by Board Member Mendez, to approve Item 4 of the
Consent Calendar Unanimously passed 5-0.
AYES: BOARD MEMBERS: AVILA Jr., GONZALES, ALVAREZ, MENDEZ, BECKWITH
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
ABSTAIN: BOARD MEMBERS: NONE
STAFF REPORTS/COMMUNICATIONS
1. Fiscal Year 2023-24 First Quarter Budget Reports for Water and Electric Funds
Recommendation: 1) Receive and file Fiscal Year 2022-23 First Quarter Budget Reports for Water
and Electric funds.
Administration and Finance Manager Daniel Smith reported Fiscal Year 2023-24 First Quarter Budget
Reports for Water and Electric Funds and responded to Board member questions.
First Quarter (Q1) report consists of July 2023 through September 2023. The Water Division Q1 report
showed a positive cash flow of $2.8 million. Revenues were at 31% of the budget while operating
expenses were at 22% of the budget. Retail sales through Q1 were down 9.5% compared to the same
period last year. The division's cash reserves were at $22.1 million, which is above the minimum
requirement of $19.0 million. Debt service coverage was at 2.77 times, also exceeding the minimum
requirement of 1.25. The Electric Division Q1 report showed a positive cash flow of $3.2 million.
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Revenues were at 29% of the budget while operating expenses were at 24% of the budget. Retail sales
through Q1 were down 11.4% compared to the same period last year. The division's cash reserves were
at $28.3 million, which is well above the minimum requirement of $13.5 million. Debt service coverage
was at 13.87, which is also above the minimum requirement of 1.10.
VERBAL COMMUNICATIONS
1. Power Supply Update
General Manager Tikan Singh reported that the City’s annual consumption was 242 gigawatt hours
(GWh), 6% lower than the twenty-year median of 258 GWh. The City peaked in August at 66.7
megawatts (MW) compared to the 2022 summer peak at 71.2 MW. Preliminary renewable generation
contribution to 2023 retail consumption was approximately 30%. Staff will utilize banked credits to meet
the RPS 2023 target of 43%. Delay of wind commercial operation was the main cause for meeting the
RPS 2023 target. For the year 2024 outlook, at the Legislative and Regulatory front will include recurring
meetings with CAISO to address the lack of resource adequacy and other matters related to granting
resource adequacy value to long-term imported renewable contracts. SCPPA cities will have recurring
meetings with the California Energy Commission (CEC). Critical topics of discussion will include the
lack of new renewable projects, tightness in the Resource Adequacy market, and realistic forecasts on
energy storage buildout and electrification infrastructure. Two productive meetings were held in
December 2023 and January 2024 with the Vice Chair and his staff.
2. Water Supply Update
Assistant General Manager Water Operations Melissa Barbosa reported that as of January 2024, the City
has received around 5 inches of rain for the current rain season. In comparison, the total rainfall in January
2023 was 12 inches, with 19 inches total during the rain season. The Key Well Ground Water Elevation
is currently at 223.2 feet, which is an increase from 178.9 feet in 2023. As of December 2023, the State
Water Project (SWP) 2024 Allocation is at 10%.
Azusa Light & Water staff answered Board Member questions.
ADJOURNMENT THE AZUSA UTILITY BOARD AND CONTINUE AS SPECIAL CITY
COUNCIL MEETING
The Regular meeting of the Utility Board was adjourned by consensus of the Utility Board.
TIME OF ADJOURNMENT: 6:59 P.M.
______________________________________________________
CITY CLERK/SECRETARY