Glendale Homeowners Coordinating Council

Meeting Minutes from Monday, January 9, 2012

Venue: Boy Scout Headquarters, 1325 Grandview Avenue

Board members present: President: Al Hofmann (AH); 1^st Vice President Richard Lee; Corresponding Secretary: Bill Nicoll (BN);  Treasurer: Margaret Hammond (MH) Recording Secretary: Jennifer Pinkerton (JP). Absent 2^nd VP Bob Getts. Voting Delegates Present (13 of 19): Adams Hill, Chevy Chase Estates, College Hills, Deer Canyon/Oakmont, Far North Glendale, Glen Knolls, Glenoaks Canyon, Grand Central, Montecito Park, Northwest Glendale, Pelanconi Estates, Royal Canyon, Verdugo Woodlands West 

Meeting called to order at: 7:15 p.m.

Topic

Discussion

Outcome

Pledge of Allegiance

Led by Tom Hendricks of Montecito Park

Introduction of Guests

Suzanne Dunn of Representative Mike Gatto’s office was recognized

Program:

Al Hofmann introduced Former GWP Commissioner Lenore Solis, who introduced speaker Larry Moorehouse, a retired 20-year GWP employee who managed its Grayson Power Plant for 10 years, to speak on the proposed water rate increase and provide background..

Mr. Moorehouse opened by stating that he has no dispute with GWP or its managers. The City Council holds the managers in high regard so will typically accept their recommendations. GWP usually undertakes large capital projects in good economic times. The City realized it could transfer GWP revenues to the City’s general fund or for other uses, “in lieu of taxes.” As examples, SoCal Gas pays cities about 3.5% of its revenue, Charter Cable about 4%, but GWP transfers about 12% to the general fund. (The City calls this a “charge back” from GWP.) It is easier to move GWP revenues than undertake changes to the City Charter.  The Charter says only “extra funds” can be transferred. If the GWP infrastructure were in good shape, there conceivably be such “extra funds.”  When the City needs more revenue, the Council seeks higher rates. There are reasons that GWP is “short” of revenues. It has undertaken large projects such as Smart Grid.

The Smart Grid initiative was started by private utilities, as there are 5-6 grids nationally that don’t communicate. Smart Grid will enable communication among them. Edison first pushed this and the idea filtered down to smaller utilities.  But Glendale doesn’t have a grid, While the GWP received a $20 million grant, it didn’t inform the full costs of $60 million power AND water package; water obviously isn’t part of the Smart Grid.The “new” smart meters are the same as the old meters, except they can upload information. Having this ability to communicate in real-time is good, and can be used to communicate with customers – to suggest they move more of their electricity usage to off peak hours (time of use metering).GWP may now have a power rate re-design in the works, which would increase the kilowatt hour rate during peak times (10am – 5/6pm). He urges everyone to get involved in this re-design. He feels the Council can’t acknowledge its mistake in making expensive Smart Grid expenditures when it couldn’t really afford to do so. So it will be up to us to make lifestyle changes to cope with TOU rates. Old water meters measured flow; the new ones transmit usage information digitally. There is no TOU rate for water per se, just rationing: don’t water on Tuesdays or Thursdays, for example. There’s nothing wrong with this as long as customers understand. GWP needs another $60 million to maintain the new meters and they cannot get rid of meter readers: there will always be mis-reads or billing errors that have to be investigated. GWP isn’t doing a good job of educating customers about the benefits of smart meters.There are other examples of inappropriate expenditures. Landfill gas is sold to GWP (the Grayson Power Plant). But the plant’s boilers aren’t designed to burn this gas. The Power Director spoke to Council, which said Grayson HAD to accept the gas. It cost $40 million to modify the boilers and GWP pays about 10% more than its rate for natural gas. One of his contacts said the landfill gas seller would have lowered its rates 9%. GWP had to show rater payers something for these expenditures.

The take-or-ay contract for the gas expires in 2014. At that time, the landfill gas and equipment would have reverted to the City for $1. Instead, the City purchased it for $22 million. The now City-owned landfill gas facility is THE largest consumer of power, so the City is in effect selling power to itself.  He’s not saying the project wasn’t needed, but that it should have been better coordinated. GWP has hired 4 consultants to do a study on its repowering needs, but Mr. Moorehouse said employees can do this. He supports an opt-out measure for those opposed to smart meters. Lenore added that GWP pays for all of Public Works’ 9/11-mandated security measures, as well as street light poles, etc., and that GWP hasn’t billed Public Works properly for this. GWP does face many challenges; many small municipal utilities have folded because cities used them as “banks” and diverted money from infrastructure and operations to other uses. The GWP’s 3 commissioners, who are appointed by the Council, work for utilities and bring a similar mindset to bear.

Now is the time to get involved, specifically with the power rate re-design. The City didn’t give residents such an opportunity with the water rate.

Water Rate Increase

John Kociemba of Pelanconi Estates gave a presentation on proposed increase. He said literature provided by GWP was misleading: most customers have larger meters than the size used as an example. Also, GWP added rates paid to the Metropolitan Water District (MWD) in some examples, but not others. He provided a handout that included the GWP chart and one he created for comparison. The 4-page informational letter explaining the rates must be signed and returned by Jan. 31.

Council hearing on Jan. 31

Sharon Weisman suggested creating a subcommittee for water rates.

Al Hoffmann distributed a flier showing smart meter/smart grid expenditures since 2007

Call for Quorum

A quorum was declared at 8:30 with. representatives from13 of the 19 associations present.

Quorum declared at 8:40pm

Nominating Committee

Jim Reichgelt announced the updated slate of candidates: Todd Hunt at President; Sherry Stubbs as 2^nd VP; and incumbents Bill Nicoll as Corresponding Secretary, Jennifer Pinkerton as Recording Secretary, and Margaret Hammond as Treasurer. The position of 1^st VP was open to nominations from the floor. Margaret nominated Lenore Solis, who accepted.

The delegates’ vote to accept this slate was unanimous.

Minutes (BN, JP)

Approval of December 5, 2011, minutes with one revision (regarding a GPD Officer’s title).

Motion to accept made by Bill Nicoll, seconded by Lenore Solis.

Financial Report

The balance forward as of Dec. 31 was $11,678.50. Expenses totaled $2,077.20; Income was $1,635; interest income was $1.03, for a  current balance is $$11,297.36

Motion to accept made by Richard Lee, seconded by Jim Reichgelt

Old Business

Audit Committee

Treasurer Margaret Hammond will give the December financial records to Jolene Taylor of the Audit Committee this week.

Leaf Blower Report

Sharon discussed the proposed resolution that was developed by the Leaf Blower committee, and a handout with the resolution.

It was approved that the proposed resolution would be submitted to Council by GHCC

By-Laws Committee

Bill Nicoll reported progress; the by-laws were discussed at the Officers Committee meeting in December. He hopes to make a more formal report in February.

Two-thirds of the voting members present in a meeting at which a quorum is present must approve any amendment to the by-laws.

usiness:

None

Announcements

Jan. 12 hearing

High-speed rail

Jan. 17 hearing

On home at 1304 Carmen; 6pm

February speaker

Councilmember Rafi Manoukian

February 6 Officer Installation Dinner

At Clancy’s; $25/person meal cost payable to Treasurer Margaret Hammond

Arbor Day

Tues. March 6: is Arbor Day, sponsored by Glendale Beautiful

Adjourned

Motion to adjourn by Bill Nicoll, seconded by Jennifer Pinkerton. Adjourned 9:44 p.m.

Next Meeting

Officer Installation Diner

Monday, Feb. 6

6pm social hour, 7:00 pm dinner ($25/person)

Clancy’s Crab Boiler

219 N. Central Avenue

Complementary valet parking in rear, off Salem St.

Councilmember Rafi Manoukian will speak