HomeMy WebLinkAboutMinutes - May 17, 1999 - CC1
1
1
CITY OF AZUSA
MINUTES OF THE CITY COUNCIL
ADJOURNED REGULAR
MONDAY, MAY 17,1999 - 6:30 P.M.
The City Council of the'City of Azusa met in adjourned regular session at the above date
and time in the Civic Auditorium.
Mayor Madrid called the meeting to order.
ROLL CALL
PRESENT: COUNCILMEMBERS: HARDISON, STANFORD, BEEBE, MADRID
ABSENT: COUNCILMEMBERS: ROCHA
ALSO PRESENT:
City Attorney Carvalho, City Manager Cole, Director of Utilities Hsu, Manager of Integrated
Resources Tang, Deputy City Clerk Toscano.
City Manager Cole introduced the issue of electric service, noting changes in the market,
important decision making due to deregulation and the need to continue to provide good
services. He distributed articles from Public Power Magazine and documents relating to
deregulation for Council perusal and urged Council to get informed to help make the right
choices. He announced the upcoming APPOA Annual Conference to be held in Salt Lake
City from June 21-23, 1999 and urged Council to try and attend.
Call to Order
Roll Call
Also Present
City Mgr
comments
Utilities Director Hsu and Manager of Integrated Resources Tang provided, in detail, Utilities Dir &
substance of the following topics:
Current status of electricity industry evolution in California - Successes and Failures.
Anticipated Changes in the Market Structure - Lifting the retail rate cap, Ancillary Services
Market redesign to control the exercise of market power and Municipal Utilities
participation in California restructured electricity market.
City ofAzusa's Participation in the New Market Structure - Operational transition from
SCE has been completed as of December 31, 1998. Azusa is a certified scheduling
coordinator in conducting business with the CAISO. Azusa is very active in finding market
opportunities for the benefit of its customers.
Updated Strategic Financial Plan -Summary is as follows: The City is on target to
eliminate Azusa's stranded investment by July 1, 2002, Azusa's Palo Verde debt payment
has been accelerated, which will result in lower annual net income in the next few years, and
all assumptions under the plan have so far been on target.
Major Policy Issues to be addressed. General Fund Transfer Policy -Retail rate reduction
will necessarily mean lesser contribution (in absolute terms) under the current general fund
transfer policy. It will require concerted efforts of the City to put in place a viable financial
plan for the next few years to ensure a smooth transition to competition.
Governance - The City may need to re-examine the governance structure of its business
enterprises to better prepare for the challenges of competition, in particular electric
competition.
Retail Choice Implementation. The city will need to decide in the near future a retail choice
model that will benefit all of Azusa's customers in the provision of electrical services. Policy
issues will need to be addressed before a retail choice model can be decided upon.
When shall Azusa open,for retail choice? Utilities Director Hsu stated that a workshop
will be held in the Fall of this year in order to provide choices.
Major Implementation Issues to be addressed: Infrastructure requirements, Consumer
protection measures, The rules of competition, Timing and Marketing.
Mgr Integrated
Resources
comments
regarding
Electric
Deregulation
1
1
Staff reiterated that a workshop this fall will address the implementation issues in detail. Discussion
Discussion was held between Councilmembers and staff regarding the issue and plans for
the future.
It was consensus of Councilmembers to adjourn.
TIME OF ADJOURNMENT: 7:25 P.M.
DEPUTY CITY CLERK
NEXT RESOLUTION NO. 99-C63.
NEXT ORDINANCE NO.99-010.
05/17/99 PAGE TWO (Adjourned regular meeting)
Adjourn