MINUTES OF THE REGULAR MEETING
CITY OF ALAMEDA PUBLIC UTILITIES BOARD

Monday, June 19, 2006

1. ROLL CALL

   President McCormick called the meeting to order at 7:09 P.M. On roll call, the following Commissioners were present: Bangert, Holmes, McCahan, and City Manager Kurita.

2. SPECIAL PRESENTATION
   1. Resolution No. 4709 Commending Susan Reed for Her Long and Distinguished Service to Alameda Power & Telecom
   2. Resolution No. 4710 Commending R. Thomas Barham for His Long and Distinguished Service to Alameda Power & Telecom
   3. Resolution No. 4711 Commending Louise Y. Lum for Her Long and Distinguished Service to Alameda Power & Telecom
   4. Resolution No. 4712 Commending Patricia A. Quant for Her Long and Distinguished Service to Alameda Power & Telecom
   5. Resolution No. 4713 Commending Cris C. Banaban, Jr. for His Long and Distinguished Service to Alameda Power & Telecom
   6. Resolution No. 4714 Commending Marion F. Miller for Her Long and Distinguished Service to Alameda Power & Telecom
   7. Resolution No. 4715 Commending Jane T. Shawn for Her Long and Distinguished Service to Alameda Power & Telecom
   8. Resolution No. 4716 Commending Joan M. Gregory for Her Long and Distinguished Service to Alameda Power & Telecom
   9. Resolution No. 4717 Commending Gregory T. Smith for His Long and Distinguished Service to Alameda Power & Telecom
   10. Resolution No. 4718 Commending Kathleen Zell for Her Long and Distinguished Service to Alameda Power & Telecom

   City Manager Kurita moved and Commissioner Bangert seconded the following motion to adopt resolutions 4709, 4710, 4711, 4712, 4713, 4714, 4715, 4716, 4717, and 4718:

   “COMMENDING SUSAN REED FOR HER LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; COMMENDING R. THOMAS BARHAM FOR HIS LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; COMMENDING LOUISE Y. LUM FOR HER LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; COMMENDING PATRICIA A. QUANT FOR HER LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; COMMENDING CRIS C. BANABAN, JR. FOR HIS LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; COMMENDING MARION F. MILLER FOR HER LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; COMMENDING JANE T. SHAWN FOR HER LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; COMMENDING JOAN M. GREGORY FOR HER LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; COMMENDING GREGORY T. SMITH FOR HIS LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM; AND COMMENDING KATHLEEN ZELL FOR HER LONG AND DISTINGUISHED SERVICE TO ALAMEDA POWER & TELECOM.”

   The resolutions were adopted by the following vote:

   AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
   NOES: None
   ABSENT: None

3. CONSENT CALENDAR
   1. Minutes
      1. May 15, 2006 – Closed Session
      2. May 15, 2006 – Regular Session
   2. Listing of Bills Paid
   3. Financial & Operating Report – May 2006
   4. Treasurer's Report – May 2006

   President McCormick requested that Items 3.C and 3.D be pulled from the Consent Calendar for future consideration.

   Commissioner Holmes moved and Commissioner McCahan seconded the following motion:

   "APPROVE THE MINUTES, AND ACCEPT THE LISTING OF BILLS PAID.”

   The motion was passed, and the resolution was adopted by the following vote:

   AYES: Commissioners Bangert*, Holmes, McCahan, City Manager Kurita, and President McCormick
   NOES: None
   ABSENT: None
   ABSTAIN: Commissioner Bangert abstained from Item 3.A

4. ORAL COMMUNICATIONS

   Mr. F. David Maxcy, a Bay Street resident addressed the Public Utilities Board (Board) and presented concerns related to undergrounding of utility infrastructure in the neighborhood. Mr. Maxcy presented the Board with correspondence, including 19 signatory sheets.

5. COUNCIL COMMUNICATIONS

   City Manager Kurita advised the Board that the City Council had held a budget workshop on May 30 and again would consider the budget at its meeting on the following evening. It is anticipated that the City’s budget will be presented for final approval at the Council’s meeting on July 5.

6. AGENDA ITEMS
   1. Resolution No. 4719 Supporting a “Buy” Alameda Philosophy

      Commissioner Bangert moved and Commissioner McCahan seconded the following motion to adopt Resolution 4719:

      “SUPPORTING A “BUY” ALAMEDA PHILOSOPHY."

      The resolution was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   2. Resolution No. 4720 Establishing the Amount of the Transfer to the General Fund and Resolution No. 4721 Adopting the Fiscal Year (FY) 2007 Budget.

      Mr. Len Grzanka, an Alameda resident addressed the Board citing concerns related to the financing of the telecommunications business line, recent electric rate adjustment, and Utility Users Tax.

      Commissioner Holmes moved and Commissioner McCahan seconded the following motion to adopt Resolution No. 4708:

      “ESTABLISHING THE AMOUNT OF THE TRANSFER TO THE GENERAL FUND AND ADOPTING THE FISCAL YEAR (FY) 2007 BUDGET.”

      The resolution was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   3. Resolution No. 4720 Establishing the Amount of the Transfer to the General Fund and Resolution No. 4721 Adopting the Fiscal Year (FY) 2007 Budget.

      Commissioner Bangert moved and Commissioner McCahan seconded the following motion to adopt Resolution 4722:

      “APPROVING ALAMEDA POWER & TELECOM’S INVESTMENT POLICY.”

      The resolution was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   4. Resolution No. 4723 Authorizing Certain Alameda Power & Telecom Employees to Execute Transactions with Morgan Stanley

      Commissioner McCahan moved and Commissioner Bangert seconded the following motion to adopt Resolution 4723:

      "AUTHORIZING CERTAIN ALAMEDA POWER & TELECOM EMPLOYEES TO EXECUTE TRANSACTIONS WITH MORGAN STANLEY."

      The resolution was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   5. Resolution No. 4725 Authorizing Certain Alameda Power & Telecom Employees to Execute Transactions with the Local Agency Investment Fund

      Commissioner Bangert moved and Commissioner McCahan seconded the following motion to adopt Resolution 4725:

      “AUTHORIZING CERTAIN ALAMEDA POWER & TELECOM EMPLOYEES TO EXECUTE TRANSACTIONS WITH THE LOCAL AGENCY INVESTMENT FUND.”

      The resolution was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   6. Report Re:  Authorize the General Manager to Solicit Bids for the Electric and Telecom Substructure Maintenance and Construction Project

      Commissioner Bangert moved and Commissioner McCahan seconded the following motion:

      “AUTHORIZE THE GENERAL MANAGER TO SOLICIT BIDS FOR THE ELECTRIC AND TELECOM SUBSTRUCTURE MAINTENANCE AND CONSTRUCTION PROJECT.”

      The motion was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   7. Report Re:  Authorize the General Manager to Solicit Bids for the Overhead and Underground High Voltage Power Maintenance and Construction Program

      Commissioner Bangert moved and Commissioner McCahan seconded the following motion:

      “AUTHORIZE THE GENERAL MANAGER TO SOLICIT BIDS FOR THE OVERHEAD AND UNDERGROUND HIGH VOLTAGE POWER MAINTENANCE AND CONSTRUCTION PROGRAM.”

      The motion was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   8. Resolution No. 4724 Authorize the General Manager to Execute a Lease Agreement for Three Compressed Natural Gas Heavy-Duty Utility Vehicles for the Electric Business Line

      Commissioner Holmes moved and Commissioner McCahan seconded the following motion to adopt Resolution 4724:

      “AUTHORIZE THE GENERAL MANAGER TO EXECUTE A LEASE AGREEMENT FOR THREE COMPRESSED NATURAL GAS HEAVY-DUTY UTILITY VEHICLES FOR THE ELECTRIC BUSINESS LINE.”

      The resolution was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   9. Resolution No. 4726 Awarding a Contract for the Citywide Inspection, Testing, and Treatment of Wood Poles (Specification No. CS 03-06-01)

      Commissioner Bangert moved and Commissioner Holmes seconded the following motion to adopt Resolution 4726:

      “AWARDING A CONTRACT FOR THE CITYWIDE INSPECTION, RESTING, AND TREATMENT OF WOOD POLES (SPECIFICATION NO. CS 03-06-01).”

      The resolution was adopted by the following vote:

      AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
      NOES: None
      ABSENT: None

   10. Resolution No. 4727 Authorizing the General Manager to Extend the Term of a Consultant Agreement with Cyclone Advertising 

       Commissioner McCahan moved and Commissioner Bangert seconded the following motion to adopt Resolution 4727:

       “AUTHORIZING THE GENERAL MANAGER TO EXTEND THE TERM OF A CONSULTANT AGREEMENT WITH CYCLONE ADVERTISING.”

       The resolution was adopted by the following vote:

       AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
       NOES: None
       ABSENT: None

   11. Resolution No. 4728 Authorizing Execution of the Single Member Services Agreement for Special Transactions by and Between the City of Alameda and the Northern California Power Agency 

       Commissioner McCahan moved and Commissioner Bangert seconded the following motion to adopt Resolution 4728:

       “AUTHORIZING EXECUTION OF THE SINGLE MEMBER SERVICES AGREEMENT FOR SPECIAL TRANSACTIONS BY AND BETWEEN THE CITY OF ALAMEDA AND THE NORTHERN CALIFORNIA POWER AGENCY.”

       The resolution was adopted by the following vote:

       AYES: Commissioners Bangert, Holmes, McCahan, City Manager Kurita, and President McCormick
       NOES: None
       ABSENT: None
       

   12. General Manager's Report – May 2006

       On behalf of staff, the General Manager thanked Commissioner McCahan for his remarks and representation at the annual Red Cross Heroes Breakfast, reported to the Board on participation in a large-scale business expansion event, and again recognized and thanked retiring employees.

7. BOARD COMMUNICATIONS

   Commissioner Bangert reported on participation with the General Manager in a recent tour of telecommunications facilities provided by the City of Lompoc.

8. ORAL REPORTS

   None.

9. ADJOURNMENT

   The meeting was adjourned at 9:25 P.M.

Respectfully submitted

Valerie O. Fong, Secretary
Public Utilities Board