2006 INTEGRATED RESOURCE PLAN � ELECTRIC SYSTEM � STUDY SESSION:

 

The Integrated Power Resource Plan � Electric System�s (IRP) immediate purpose is to review the electric energy needs of Burbank and the alternative means of meeting these needs while maintaining its commitment to the environment.  Its ongoing purpose is to provide support for the decisions that must be continually made in order to provide a reliable supply of electricity at competitive rates.

 

Additionally, Federal regulations require the City to submit an IRP to the Western Area Power Administration, the Federal agency that operates Hoover Dam, in connection with the City�s interest in the Hoover Dam generation station.

 

The most pressing resource planning issue facing BWP is the challenge of meeting the City�s commitment to development of energy efficiency and renewable energy resources economically, while continuing to integrate recent and renewed energy generation.  The majority of the analysis in this IRP addresses these issues.

 

BWP plans to substantially meet all of its load growth requirements over the next 20 years with a combination of energy efficiency measures and renewable energy supplies.  The City�s dependence on fossil fuels is expected to be stable or declining, even though the number of customers served and the amount of electricity required will continue to increase.

 

The IRP identifies the following action items for BWP to complete in the next two years:

• Implement a long-term reserve sharing agreement for Magnolia, or pursue one of the alternatives identified in the IRP;                                                                               

• Acquire renewable resources to meet at least 10 percent of the system energy requirements not later than 2011 as progress toward a goal of 20 percent by 2017;

• Implement a multi-year fuel hedging program for natural gas;                                  

• Continue to implement system efficiency improvements to reduce distribution losses;    

• Maintain or augment current energy efficiency programs; and,

• Study the feasibility of relicensing the Olive 3 and 4 units for emergency use, or reserves.

The IRP identifies the following significant study elements for BWP to examine in the two- to five-year horizon:

• Resolve issues relating to the City�s future entitlement from the Intermountain Power Project (IPP) generating unit, in order to more effectively plan for energy and capacity needs;

• Explore with customers the potential impacts of a critical peak pricing program on curtailing loads during periods of extreme stress;                                                        

• Inventory the large HVAC demand in our service territory for potential use for capacity interruption for reserves; 

• Explore the cost of installing a system for remote interruption of customer loads for reserve purposes;      

• Explore with customers the option of interruption of customer loads and/or critical period pricing to constrain loads during times of extreme system stress;

• Inventory the number of oversized transformers on the BWP distribution system, and estimate the costs and benefits of right-sizing these units;           

• Examine the possible additional loads that would develop if electric heat pumps were promoted in homes where central air conditioning is installed, and if plug-in hybrid electric vehicles (PHEVs) become common; and,

• Review the rate and bill impacts of increasing the BWP commitment to energy efficiency with the customers and Council, to determine if the level of effort should increase.

 

6:30 P.M.

 

 

INVOCATION:                       Reverend Ron White, American Lutheran Church.

                                               The Courts have concluded that sectarian prayer as part of City

                                               Council meetings is not permitted under the Constitution.

 

FLAG SALUTE:

 

ROLL CALL:

 

 

PROCLAMATION:               BUILDING SAFETY WEEK.

 

RECOGNITION:                    BUILDING SAFETY POSTER CONTEST.

 

PROCLAMATION:               MARY ALICE O�CONNOR DAY.

 

 

COUNCIL COMMENTS: (Including reporting on Council Committee Assignments)

 

INTRODUCTION OF ADDITIONAL AGENDA ITEMS:

At this time additional items to be considered at this meeting may be introduced.  As a general rule, the Council may not take action on any item which does not appear on this agenda.  However, the Council may act if an emergency situation exists or if the Council finds that a need to take action arose subsequent to the posting of the agenda.  Govt. Code �54954.2(b).

 

 

INITIAL OPEN PUBLIC COMMENT PERIOD OF ORAL COMMUNICATIONS:  (Two minutes on any matter concerning City Business.)

 

There are four segments of Oral Communications during the Council Meeting.  The first precedes the Closed Session items, the second and third segments precede the main part of the City Council�s business (but follow announcements and public hearings), and the fourth is at the end of the meeting following all other City business.

 

Closed Session Oral Communications.  During this period of oral communications, the public may comment only on items listed on the Closed Session Agenda(s).  A PINK card must be completed and presented to the City Clerk.  Comments will be limited to three minutes.

 

Initial Open Public Comment Period of Oral Communications.  During this period of Oral Communications, the public may comment on any matter concerning City Business.   A BLUE card must be completed and presented to the City Clerk.  NOTE:  Any person speaking during this segment may not speak during the third period of Oral Communications. Comments will be limited to two minutes.

 

Agenda Item Oral Communications.  This segment of Oral Communications immediately follows the first period, but is limited to comments on action items on the agenda for this meeting.  For this segment, a YELLOW card must be completed and presented to the City Clerk. Comments will be limited to four minutes.

 

Final Open Public Comment Period of Oral Communications.  This segment of oral communications follows the conclusion of agenda items at the end of the meeting.  The public may comment at this time on any matter concerning City Business.  NOTE:  Any member of the public speaking at the Initial Open Public Comment Period of Oral Communications may not speak during this segment.  For this segment, a GREEN card must be completed and presented to the City Clerk.  Comments will be limited to two minutes.

 

City Business.  City business is defined as any matter that is under the jurisdiction of the City Council.  Although other topics may be of interest to some people, if those topics are not under City Council jurisdiction, they are not City business and may not be discussed during Oral Communications.

 

Videotapes/Audiotapes.  Videotapes or audiotapes may be presented by any member of the public at any period of Oral Communications or at any public hearing.  Such tapes may not exceed the time limit of the applicable Oral Communications period or any public comment period during a public hearing.  The playing time for the tape shall be counted as part of the allowed speaking time of that member of the public during that period.

 

Videotapes must be delivered to the Public Information Office by no later than 10:00 a.m. on the morning of the Council meeting in a format compatible with the City�s video equipment.  Neither videotapes nor audiotapes will be reviewed for content or edited by the City prior to the meeting, but it is suggested that the tapes not include material that is slanderous, pornographic, demeaning to any person or group of people, an invasion of privacy of any person, or inclusive of material covered by copyright.

 

Printed on the videocassette cover should be the name of the speaker, the period of oral communication the tape is to be played, and the total running time of the segment.  The Public Information Office is not responsible for �cueing up� tapes, rewinding tapes, or fast forwarding tapes.  To prevent errors, there should be ten seconds of blank tape at the beginning and end of the segment to be played.  Additionally, the speaker should provide the first sentence on the tape as the �in cue� and the last sentence as the �out cue�.

 

As with all Oral Communications, videotapes and audiotapes are limited to the subject matter jurisdiction of the City and may be declared out of order by the Mayor.

 

Disruptive Conduct.  The Council requests that you observe the order and decorum of our Council Chamber by turning off or setting to vibrate all cellular telephones and pagers, and that you refrain from making personal, impertinent, or slanderous remarks.  Boisterous and disruptive behavior while the Council is in session, and the display of signs in a manner which violates the rights of others or prevents others from watching or fully participating in the Council meeting, is a violation of our Municipal Code and any person who engages in such conduct can be ordered to leave the Council Chamber by the Mayor.

 

Once an individual is requested to leave the Council Chamber by the Mayor, that individual may not return to the Council Chamber for the remainder of the meeting.  BMC �2-216(b).

 

Individuals standing in the Council Chamber will be required to take a seat.  Also, no materials shall be placed in the aisles in order to keep the aisles open and passable.  BMC �2-217(b).

 

Your participation in City Council meetings is welcome and your courtesy will be appreciated.

 

COUNCIL AND STAFF RESPONSE TO OPEN PUBLIC COMMENT AND AGENDA ITEM PERIOD OF ORAL COMMUNICATIONS:

 

 

AGENDA ITEM ORAL COMMUNICATIONS:  (Four minutes on Action Agenda items only.)

 

COUNCIL AND STAFF RESPONSE TO AGENDA ITEM ORAL COMMUNICATIONS:

 

 

JOINT MEETINGS WITH THE REDEVELOPMENT AGENCY:

 

1.      PROPOSED LEASE OF CITY PROPERTY LOCATED AT 401 NORTH BUENA VISTA STREET TO THE BURBANK HOUSING CORPORATION FOR THE OPERATION AND MANAGEMENT OF THE BUENA VISTA FAMILY CENTER:

 

The purpose of this report is to provide information to the Council for consideration of a lease of City property located at 401 North Buena Vista Street to the Burbank Housing Corporation (BHC) for the operation and management of the Buena Vista Family Center.

 

On August 23, 2005, the Council and Redevelopment Agency (Agency) Board approved the re-use of the former Buena Vista Library as a childcare and family resource center.  Included in that approval was a Cooperation Agreement between the City and Agency that authorized the Agency to fund and complete the rehabilitation of the site as a childcare and family resource center.  The authorization also included the approval of contract documents and bid award to TLD Construction, Inc. for Bid Schedule No. R-1190, and the approval of Alley Vacation V-370. 

 

As background, the approved project includes the rehabilitation of the existing 7,900 square foot former library building to be utilized as a childcare center for 84 to 88 children.  An additional 640 square feet has been added to the building along Buena Vista Street to be the family resource center. The project includes the undergrounding and rerouting of overhead electrical lines (in the alley, parallel to Buena Vista Street; adjacent to the building).  In addition, a portion of the north/south alley with access from Verdugo Avenue has been vacated to create a contiguous site and a safe play yard area.

 

As recommended when the project was approved in August 2005, staff is proposing that the City enter into a long-term, real property lease with the BHC to provide exclusive management responsibilities of the childcare and family resource center.  The management and operations of the Buena Vista Center are proposed to be structured similar to the management structure of the Children�s Center located on Ontario Street, in which BHC owns the center and Knowledge Learning Center (KLC) operates the center.  The proposed cost of the lease would be $1 per year to the BHC.  As a condition of the lease, the BHC will agree to enter into an initial five-year agreement with the KLC for the operation of the childcare center. 

 

Comparable to the Children�s Center structure, BHC would pay KLC a �flat� annual management fee of $55,000 (with annual increases of five percent) to operate the childcare center.  This management fee model would require BHC to maintain financial responsibility for the center while the KLC assumes all operational management and liability.  In addition, BHC will maintain control over the tuition rates for both market and subsidized spaces, an important factor in managing the gap between market and affordable rates.  BHC is required to pay all start-up and pre-opening expenses (furniture, equipment, hiring and associated initial opening expenses) estimated at $305,000.  Funding for the first year�s management fee along with the start-up costs (and an initial $10,000 allowance for the family resources component) is proposed to be provided by BHC.  All expenses, except for the annual management fee, are one-time costs. It is estimated that after the first year of operation, the profits generated from the Center will offset the management fee.  Any profit generated from the center after compensating the management fee will then be reinvested to provide deeper subsidy levels for the affordable spaces.  As part of the approved BHC debt restructuring, an annual allowance of $65,000 per year has been incorporated to cover the operating costs of the facility. 

 

In order to sustain BHC�s housing activities, operation of the family resource centers, childcare center and their administrative costs, staff is recommending a forgivable loan in the amount of $370,000, over ten-years of operating the center; as outlined in the Loan Agreement.  In addition to the proposed forgivable loan, staff proposes to transmit the $75,000 play yard allowance approved in the Fiscal Year 2005-06 project budget to BHC for the purchase and installation of play yard equipment.  This will allow BHC to work with KLC in selecting the preferred play yard equipment.

 

Finally, the proposed lease between the City and BHC will require BHC to oversee the successful operation of the family resource center component.  As it does with other BHC centers within the focus neighborhoods, City staff will assist with this task through a collaborative effort among a variety of non-profit service providers.  There are available Agency funds to fund these necessary expenses.

 

Recommendation:

 

Adoption of proposed Council resolution entitled:

(4/5)

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING THE LEASE AGREEMENT BETWEEN THE CITY OF BURBANK AND BURBANK HOUSING CORPORATION (BUENA VISTA FAMILY CENTER).

 

Adoption of proposed Redevelopment Agency resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING A LOAN AGREEMENT BETWEEN THE AGENCY AND BURBANK HOUSING CORPORATION AND AMENDING THE AGENCY FISCAL YEAR 2005-2006 ANNUAL BUDGET TO APPROPRIATE $370,000.

 

 

2.      PROPOSED REAL PROPERTY ACQUISITION - 2721 WEST Burbank BOULEVARD (APN:  2438-001-026)

 

The purpose of this report is to provide the information necessary for the:  1) Council to consider the proposed acquisition of real property located at 2721 West Burbank Boulevard (and related documents); and, 2) Redevelopment Agency (Agency) Board to consider a budget amendment to the Fiscal Year (FY) 2005-06 annual budget (and related documents).

 

The Council has historically shown its ongoing commitment to and support of the non-profit service providers in Burbank.  More specifically, in FYs 2004-05 and 2005-06, Community Development Block Grant funding totaling $1,034,900, was awarded to assist in the expansion and rehabilitation of the Burbank Temporary Aid Center facilities; and, since 1994, the City has leased the former Fire Station 13 to the Boys and Girls Club to further its mission in serving Burbank�s youth.  Similarly, the Council has established a goal of helping the Family Service Agency find a suitable new location from which they can continue and expand operations. 

 

The proposed acquisition price is $1.95 million (or $283 per square foot of gross building area).  The City�s appraiser, Otis Hackett and Associates, found the property to be listed within the fair market value range of $1.895 to $1.965 million ($275 to $285 per gross square foot).  Staff also reported that based on a preliminary walk-through of the building, City building inspectors found the building to be structurally sound. 

 

Should the Council approve the proposed purchase and sale agreement for the subject property, the next step will be to determine the specifics of how the property will be used.  Staff recommends the City retain ownership of the property and negotiate a lease agreement with the Family Service Agency.  Due to the aggressive timeframe in closing the proposed escrow, staff proposes to return to the Council at a later date with a lease agreement between the City and the Family Service Agency.  Staff also recommends that a Project  Oversight Committee be formed (including two Members of the Council, City Manager, Community Development Director and other key staff members) to negotiate the lease. 

 

As mentioned, the acquisition price is $1,950,000.  In addition, there are escrow fees totaling $1,500 which will be shared equally between the City and seller, resulting in a total expenditure of $1,950,750.  Staff recommends that the City utilize debt reimbursement funds from the Agency to acquire the subject property.  More specifically, staff proposes the Agency repay a portion of its City Centre Project Area Loan for the sole purpose of funding the proposed acquisition.

 

Recommendation:

 

1.    Staff recommends that the Council select two Members to serve on a Project Oversight Committee to negotiate the proposed lease with the Family Service Agency.

 

2.    Adoption of proposed Council resolutions entitled:

(4/5 vote required)

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING THE FISCAL YEAR 2005-2006  ANNUAL BUDGET, APPROPRIATING FUNDS IN THE AMOUNT OF $1,950,000.00 AND APPROVING A COOPERATION AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK.

 

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING THE PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS BETWEEN THE CITY OF BURBANK AND THE BURNETT TRUST (2721 West Burbank Boulevard).

 

3.    Adoption of proposed Redevelopment Agency resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK AMENDING THE  FISCAL YEAR 2005-2006 ANNUAL BUDGET IN THE AMOUNT OF $1,950,000 AND APPROVING A COOPERATION AGREEMENT WITH THE CITY OF BURBANK.