20111018 Regular City Council Meeting - MinutesMINUTES OF THE REGULAR CITY COUNCIL -
LIGHT & POWER MEETING OF THE CITY OF VERNON
HELD OCTOBER 18, 2011, IN THE COUNCIL
CHAMBERS OF THE CITY HALL LOCATED AT
4305 SANTA FE AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: Gonzales, Davis, McCormick, Maisano, Newmire
MEMBERS ABSENT: None
The meeting was called to order at 8:02 a.m. by Mayor Gonzales
The City Clerk announced that there were no changes to the
agenda, but would like to add the flag salute to each meeting.
Councilman McCormick led the flag salute.
The City Clerk announced that this was the time allotted for
public comment. The Mayor inquired whether anyone in the
audience wished to address the City Council. No one responded.
It was moved by Davis and seconded by McCormick to approve the
Minutes of the Regular City Council - Light & Power Meeting held
September 20, 2011. Motion carried, 5-0.
It was moved by Newmire and seconded by Maisano to approve the
Minutes of the Adjourned Regular City Council - Light & Power
Meeting held September 22, 2011. Motion carried, 3-0-2.
Councilman McCormick and Davis abstained.
It was moved by McCormick and seconded by Newmire to approve the
Minutes of the Regular City Council - Light & Power Meeting held
October 4, 2011. Motion carried, 5-0,
PUBLIC HEARINGS
At 8:05 a.m., it was moved by McCormick and seconded by Davis,
to open the public hearing to consider the establishment of the
new Transmission Revenue Balancing Account Adjustment, the new
Existing Transmission Contract Adjustment, and the new estimated
2012 Gross Load, and adopt an amended Transmission Owner Tariff.
Motion carried, 5-0.
Electric Resource Planning & Development Manager Abraham Alemu
reported that on October 8, 2011, a public notice was published
for the aforementioned public hearing.
The first resolution addresses the adjustment to the
transmission base revenue requirement. The California
Independent System Operator Corporation ("ISO") collects user
charges based on the capacity transferred to the City. The
adjustment is calculated as anything in excess within a given
year, and is returned to the ISO. Excess revenue during the
year is money returned to the users.
Alemu explained that the balancing adjustment is calculated each
month. Anything that the ISO receives that is not part of the
ISO requirement is returned. There are two charges. One of
which is the willing charge which occurs when an entity buys
power from out of state, and they must pay the ISO. The charge
Regular City Council -
Light & Power Department Minutes
October 18. 2011
is distributed in the form of credits to participating entities
like Vernon. The figures are calculated on a monthly basis in
order to calculate the approved rate. The figures were reviewed
on September 30`h and that number was used to adjust the new
fiscal year figures.
Currently, there are approximately $500,000 in credits which
will be used as part of the adjustment to the revenue
requirement, to be effective January 1, 2012.
Alemu explained that the same resolution addressed the
transmission owner tariff which is the contract or guidelines
for every ISO participating entity.
The transmission tariff has been in place since 2006. Since
then the market has changed and the ISO based tariffs have
changed. The City now needs to comply with these changes.
Alemu reported that the second resolution addressed the
transmission revenue requirements. Alemu advised that this is
the third time Light & Power has come to the City Council since
the settlement with Southern California Edison ("Edison")
regarding this matter. The transmission revenue requirement
figures were agreed upon up through 2012. Vernon is required to
formally submit the report to the Federal Energy Regulatory
Commission ("FERC"). Light & Power is submitting $1,346,520 for
2012.
Alemu advised that the city does not have agreed upon figures
for 2013. They will be determined based on what Edison does.
Alemu explained that this year's figures are more of a
formality.
Alemu advised that within the same resolution there is also the
gross lead filing, which is the total city load as seen by the
ISO. The figure is part of an equation that is used to
determine how Vernon gets compensated. Calculations are based
on a per unit rate, and that rate is used to compensate Vernon.
The ISO charges and recovers funds on Vernon's behalf.
Alemu explained that the dilemma is that the data used in 2008
was that of 2007 and Vernon's load has decreased since then.
Because of the high load in 2007, Vernon is compensated at a
lower rate. Vernon's current load is lower therefore the rate
should be higher. The department is filing revised figures.
At 8:17 a.m., it was moved by McCormick and seconded by Davis,
to close the public hearing. Motion carried, 5-0.
a. Resolution No. 2011-169 - A Resolution of the City
Council of the City of Vernon Establishing a Transmission
Revenue Balancing Account Adjustment for 2012 in
accordance with Vernon's Transmission Owner Tariff, and
Providing for Tariff Sheet Changes to Implement the
Adjustment, and Adopting an Amended Transmission owner
Tariff
It was moved by Maisano and seconded by Davis to approve
Resolution No. 2011-169. Motion carried, 5-0.
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October 18, 2011
b. Resolution No. 2011-170 - A Resolution of the City
Council of the City of Vernon Adopting a New Transmission
Revenue Requirement and Gross Load for 2012 in accordance
with Vernon's Transmission Owner Tariff and Providing for
Tariff Sheet Changes to Implement the Adjustment
It was moved by Newmire and seconded by McCormick to
approve Resolution No. 2011-170. Motion carried, 5-0.
CONSENT CALENDAR:
It was moved by McCormick and seconded by Davis, that the
matters on the Consent Calendar be approved as recommended.
Motion carried, 5-0.
1.Approval of Light & Power Warrant Register No. 309,
totaling $4,613,731.30, which covers the period of
September 27 through October 10, 2011, and consists of the
following:
a. Ratification of wire transfers totaling $4,485,208.26;
and
b.Ratification of the issuance of early checks totaling
$73,606.88; and
c.Authorization to issue pending checks totaling
$54,916.16.
2. Approval of Gas Warrant Register No. 97, totaling
$2,541,238.57, which covers the period of September 27
through October 10, 2011, and consists of the following:
a. Ratification of wire transfers totaling $2,532,912.47;
and
b. Ratification of the issuance of early checks totaling
$5,826.10; and
c. Authorization to issue pending checks totaling
$2,500.00.
3. Resolution No. 2011-171 - A Resolution of the City Council
of the City of Vernon Approving a Conflict of Interest Code
for the Ad Hoc Advisory Committee on Electric Rates
4. Resolution No. 2011-172 - A Resolution of the City Council
of the City of Vernon Setting the Date, Time and Place for
' Regular Meetings of the Ad Hoc Advisory Committee on
Electric Rates of the City Of Vernon
5.Resolution No. 2011-173 - A Resolution of the City Council
of the City of Vernon Approving and Authorizing the
Execution of a Base Contract for Sale and Purchase of
Natural Gas By and Between the City of Vernon and EDF
Trading North America, LLC
6.Authorization to purchase spare transformers from Power
Partners in order to maintain adequate inventory levels in
the EDEN system.
ORAL REPORTS
Director of Light & Power Carlos Fandino reported that there
were no power outages within the past two weeks. Fandino
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Light & Power Department Minutes
October 18, 2011
reported that capacitor bank had failed and was replaced.
Further, a cross arm of a failed insulator caused a power pole
fire during the first days of inclement weather. The Fire
Department was on scene and able to contain the fire.
During the weekend of October 14th there was a diesel spill. The
Police and Fire Department responded, as well as Light & Power.
Sand was used to absorb the substance.
On October 13, 2011, a homeless person cut a whole in the gate
by Well No. 20 and was using city water for personal hygiene
use. The Police Department responded.
On October 14, 2011, there was a non -injury traffic collision by
the Malburg Generating Station when a truck ran into the fence.
Police Department took a traffic collision report.
Fandino reported that the System Coordinators I have undergone
extensive training including field, in-house, electrical theory,
voltage, electrical and relay work. System Coordinators have
also been taught how to operate some of the equipment and have
accumulated over 900 hours in training.
Fandino recognized and congratulated all three. The Mayor
presented certificates to Jared Dacey, Jesse Blue, and George
Tolmasoff.
Fandino reported that all of the ground work had been completed
for the 26°h Street BASF Bridge. The project will be completed
on time and within budget.
Fandino advised that the Department will soon be coming to City
Council with a proposal to upgrade the internet fiber optic
system. The current system cannotaccommodatethe increased
demand in upgrades. Fandino advised that this is something the
City will have to do in order to allow new customers to come on
line with the City.
At 8:27 a.m., it was moved by McCormick and seconded by Davis,
to adjourn the meeting. Motion carried.
ATTES
111 rd G. Y m u hi
City Clerk
William J. Davis
Mayor Pro-Tem
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