CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD
Monday, November 24, 2025 – 6:30 P.M.
Chairperson: Edward J. Alvarez
Vice Chairperson: Jesse Avila, Jr.
Board Member: Robert Gonzales
Board Member: Andrew N. Mendez
Board Member: Sabrina Bow, Ed.D
Secretary: Jeffrey Lawrence Cornejo, Jr.
The Utility Board of the City of Azusa met in regular session, on the above date and time, in the Azusa Light & Water First Floor Conference Room located at 729 N. Azusa Avenue, Azusa, California.
CALL TO ORDER:
Chairperson Edward Alvarez called the meeting to order at 6:30 P.M.
ROLL CALL: Roll call was taken by Secretary Cornejo.
PRESENT: BOARD MEMBERS: BOW, MENDEZ, GONZALES, AVILA, JR., ALVAREZ ABSENT: BOARD MEMBERS: NONE
The Pledge of Allegiance was led by Boardmember Mendez.
ALSO PRESENT
Elected Officials: Secretary Cornejo
Staff Members: City Manager Sergio Gonzalez, General Manager Tikan Singh, Utilities Administrative and Financial Services Manager Danny Smith, Assistant General Manager Electric Operations Vuong, Assistant General Manager Water Operations Barbosa, Senior Management Analyst Yesenia Paez, Assistant General Manager Power Resources Richard Torres, Environmental Programs Specialist Sagun, City Clerk Services Manager Juarez, Chief of Police Wenrick, Interim City Attorney Jaime Casso A. PUBLIC PARTICIPATION
None
B. CLOSED SESSION
None
C. GENERAL MANAGER COMMENTS
Electric Update
Assistant General Manager, Electric Operations, Vuong, provided an update on two recent substation improvements: Relay Testing and DC Battery Bank Replacement. The relay testing project is completed every five years with a total of 45 relays tested, and adjustments to relays were made as recommended by a 2024 Switzer Engineering Laboratory system study. Vuong then gave an overview of the battery bank project, stating that a 21-year-old battery bank was failing and had been replaced; the replacement was completed in-house, which saved over $13k in labor.
In response to questions posed by the Board, Vuong stated that the purpose of the battery bank is to provide auxiliary power in the event that the substation loses power and a battery can provide up to 12 hours of continuous power.
Environmental Programs Specialist Sagun announced the Household Hazardous & E-Waste Collection Event taking place on November 29, 2026, and provided information about where the event was promoted.
D. UTILITY BOARD MEMBER COMMENTS
Boardmember Bow directed comments to General Manager Singh regarding customer complaints she received in relation to issues with the third-party billing company charging customer accounts late, resulting in late fees being incurred by the customer.
Boardmember Gonzales wished everyone a happy Thanksgiving.
E. SCHEDULED ITEMS
None
F. CONSENT CALENDAR
1. 2.
3. Special Call
The cancellation of the scheduled December 22, 2025, Regular Utility Board meeting was approved.
The California Fuel Rewards Program fund transfer for approximately $883,000 from the California Air Resources Board to support transportation electrification efforts pursuant to the 2025 Low Carbon Fuel Standard (LCFS) regulations was accepted; Resolution 2025-UB-09 amending the LCFS Fund 23-40-77-550-2903 budget for FY 2025-2026 by $883,000 was approved; and the General Manager was authorized to sign the Letter of Acceptance to receive the funds and utilize them in accordance with the LCFS Regulations.
Moved by Boardmember Bow, seconded by Boardmember Mendez and carried by unanimous vote of the Board to approve Consent Calendar items F-2 and F-3.
AYES: BOW, MENDEZ, GONZALES, AVILA, JR., ALVAREZ
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
SPECIAL CALL
Minutes of the Utility Board Meeting on July 28, 2025
There was discussion regarding the minute preparation process and concerns regarding the timeliness of adoption. Staff responded to the concerns, stating that the most recent minute preparation vendor was unexpectedly unable to continue working with the City, and minutes were being prepared in-house. There was further discussion regarding various tools that may be useful to Staff in the preparation of minutes.
Moved by Boardmember Bow, seconded by Boardmember Gonzales, and carried by unanimous vote of the Board to approve Consent Calendar item F-1.
AYES: BOW, MENDEZ, GONZALES, AVILA, JR., ALVAREZ
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
G. STAFF REPORTS/ COMMUNICATIONS
1. Fiscal Year 2024-25 Fourth Quarter Budget Reports for Water and Electric Funds Utilities Administrative and Financial Services Manager Smith gave an update on 4th Quarter Water Funds, reporting a positive cash flow of $10.1M; revenues at 102% of the budget; operating expenses at 90% of the budget; retail sales through Quarter 4 up 8.7% in comparison to Quarter 4 of last year; cash reserves at $21.4 M with a minimum of $19.0M required; and a debt service coverage of 3.43.
Smith also gave an update on 4th Quarter Electric Funds, reporting a positive cash flow of $12.1M; revenues at 94% of the budget; operating expenses at 74% of the budget; retail sales through Quarter 4 up
1.5% in comparison to Quarter 4 of last year; and cash reserves at $27.7M with a minimum of $12.1M required.
2. Semi-Annual Report on Azusa Light & Water’s Energy Portfolio Assistant General Manager Power Resources Torres gave the Semi-Annual Energy Portfolio Report stating that the 2025-2026 Local Power Market has observed a gas forward market with off-peak prices being greater than on-peak prices for at least eleven months of the year due to the increase in solar power; minimum hedge percentages are set by risk policy for a rolling 5-year period; ALW energy is fairly well supplied with modeling being done conservatively; hedging targets ranged from 65%-90%; the capacity supply remains in good shape through Spring 2027 with capacity needs seen in Summer 2026; the renewable energy Compliance Period 4 has ended and the California Energy Commission is verifying data; the 47% renewable target for 2025 was met; ALW sold excess credits in 2025 and has 141k remaining; and Staff has begun planning for the sale of 2026 RECs; renewable projects are no longer
being prioritized under federal administration and all proposed projects are now being reviewed equivalently – Staff is closely monitoring permitting delays.
In response to questions posed by the Board, Torres clarified that ALW is not limited to the number of credits that can be banked or sold so long as the 47% renewable target has been met.
H. VERBAL COMMUNICATIONS
Power Supply Update
Assistant General Manager Power Resources Torres gave the power supply update stating that renewable generation was at 87% of the retail load through October; the California Energy Commission (CEC) staff were in the process of verifying 2024 Compliance Period 4 data and a final report validating ALW compliance was expected by Summer 2026; and noted indications of a strong La Nina and predictions of a drier and warmer winter.
Torres responded to questions posed by the Board regarding the purchasing of credits, stating that each utility company operates differently, with some being more aggressive and requiring targets that are higher than the State requirement.
Water Supply Update
Assistant General Manager Water Operations Barbosa gave an update on the water supply announcing that a job shadowing event was hosted at the water treatment facility; reported that 6.9 inches of rain was received in November with flow being captured in the dam; the total rain season has brought a total of
6.69 inches; noted that the Key Well was at 246.4 feet as of November 21; stated that ALW is working with other districts to prepare a Golden Mussel Control Plan and described the ongoing efforts to get imported water deliveries reinstated by the County; reported that the Dam clean-up project; noted that water reservoirs are approximately half full to capture flow and prevent flooding; and stated that ALW is receiving approximately 40 CFS of water.
Barbosa responded to the Board's questions about job shadowing, stating that she has not yet received any inquiries from Citrus College and offered her contact information should the professor wish to reach out.
I. ADJOURNMENT
There being no further business to come before the Board, the meeting was adjourned at 7:08 p.m. ______________________________________________________
CITY CLERK/SECRETARY