HomeMy WebLinkAboutMinutes - September 22, 2003 - UB r
U
o�e,Fonr`P
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, SEPTEMBER 22, 2003 - 6:30 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and time
in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue,
Azusa, California.
Chairperson Chagnon called the meeting to order. Call to Order
ROLL CALL
Roll Call
PRESENT: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON
ABSENT: COUNCILMEMBERS: ROCHA, MADRID
ALSO PRESENT: Also Present
City Attorney Carvalho, City Manager Cole, Director of Utilities Hsu, Assistant City Manager
Person, Deputy City Manager Gutierrez,Administrative Technician Yang,Assistant to the Director
of Utilities Kalscheuer, Assistant Director of Water Operations Anderson, Assistant Director of
Resource Management Tang, Senior Electric Engineer Langit,Assistant Director of Electric Division
Ramirez, Customer Service Leader Tapia, Customer Service Scholes, City Clerk Mendoza.
Ceremonial Ceremonial
Chairperson Chagnon announced that Mayor Madrid and Mayor Pro-Tem Rocha will not be Chagnon
present at the meeting as they are at the Los Angeles County Fair representing the City of Azusa Comments
as today, September 22, 2003,was proclaimed "Azusa Day" at the Fair. She also announced that
she will be delivering a proclamation to Larry Wetherbee honoring him for his service to the City
as he was unable to attend the meeting tonight.
Chairperson Chagnon presented a proclamation to Director of Utilities Hsu declaring the week of Proc Public
October 5 1 through the 1 1', 2003, as Public Power Week. Power
Week
Chairperson Chagnon presented a proclamation to Garthy Lynn Dent honoring him for his service Proc to Lynn
to the Azusa Light &Was Department as a Line Mechanic. Dent
Chairperson Chagnon provided a presentation on her trip, along with Cary Kalscheuer and Bob Chagnon
Tang, to Solano County for the High Winds Project Dedication Ceremony on September 18, 2003. High Winds
Overheads of windmills were shown along with other aspects of the High Winds Energy Center. Project Ded
Councilmember Stanford, representative of the City on the Mosquito Vector Control Board, Stanford
announced that there have been signs of the West Nile Virus in birds found in Arcadia,San Gabriel Comments
and Rosemead; he advised to get rid of any standing water around properties in order not to West Nile
attract mosquitoes. Virus
Public Participation Pub Part
None. None
Chairperson Chagnon requested that item II-B, regarding Mt. Cove Water Service be brought Item 11-B
forward at this time for handling. Brt fwrd
Director of Utilities Hsu addressed the issue stating that he received a telephone message and Dir of Util
also saw an article in Mountain Times, a local Mountain Cove Association newspaper basically Comments
accusing Azusa Light and Water of unfairly taxing Mountain Cove residents. He stated that many
of those residents have 2" water meters with a monthly charge of about $57.00, while other
residents have 1" water meters are about $17 or $18 per month. The water rates are based on
water demand and the 2" meters are for properties that have sprinkler systems. He stated that
some time ago the Fire Department required all the buildings in the foothills vulnerable to fire to
have a sprinkler system in residential house. He stated that in order for the Fire Department to
determine exactly how much water is required to suppress a fire, they had to look at the total
square footage, mainly the garage square footage. The Fire Department and the developer made
the decision that the dividing line is 600 square feet; any garage over that requires a 2" water
meter. He suggested that the residents talk to the developer, Mountain Cove and Michael
Battalgia to identify the information first and then contact the Fire Department to see who
determines the 600 feet determination. He stated that Azusa Light and Water does have meters
of 1 1/2 ",which is cheaper and if they say residents can get by with this Azusa Light and Water will
change the meter at no charge. He then described how rates are set for water.
Several residents of the Mountain Cove community addressed the issue questioning what the cost Residents
of a 2" meter is paying for and how it correlates to the water usage. Director of Utilities Hsu Mountain
responded stating that part is for depreciation cost, the fixed sized is based on the demand of Cove &
water for the building, and labor costs, and it was reiterated that the criteria was established by Response
the Fire Department and the Developer and that everyone in the City is paying into the pool based
upon the size of their meter.
After additional discussion, Chairwoman Chagnon requested that a meeting be scheduled on Chagnon
October 23, 2003, at the Mountain Cove with an authorized representative from the Fire Comments
Department, Mr. Mike Battalgia of Mountain Cove, and Director of Utilities Joe Hsu. She also
requested that staff create a list of all residents in the City with 2" meters and their billed amount.
Item regarding customer billing dispute — Mr. Chris Babakitis was continued to the next Utility Babakitis
Board meeting due to Mr. Babakitis' absence. Continued
09/22/03 PAGE TWO
Consent Cal
The CONSENT CALENDAR consisting of Items IV-A through IV-C, were approved by motion of Approved
Councilmember Hardison, seconded by Chairwoman Chagnon and unanimously* carried.
A. The minutes of the regular meeting of July 23, 2003, were approved as written. Min appvd
r.
B. Approval was given to advertise for bids for the repairs to Water Well No. 2. Chairperson Rpr Well 2
Chagnon indicated that the budget amount and account number should be included in
reports under fiscal impact section.
C. Approval was given to advertise for bids for Water Project W-186, Main Replacement in Main Replace
Pasadena Avenue, Old Mill Road, Alameda Avenue, and Stein Lane. Various Sts
Scheduled Items Sched Items
Utilities Director Hsu addressed Council regarding the re-negotiation of the Contract Water Rate Dir of Util
for Miller Brewery stating that a study was conducted by Consultants with the goal to have a new Comments
rate for Miller Brewery. After the Consultant study was done, they were given a choice of a fixed Contract
rate or the Golf Course rate. Discussion was held regarding the rates to be charged Miller under Water Rate
their contract. Moved by Councilmember Stanford, seconded by Hardison and unanimously* Miller
carried to approve the Contract Water Rate for Miller Brewery to continue applying the same rate Brewery
as was applied to the Golf Course prior to the last water rate adjustment.
Assistant Director of Resource Management Tang addressed item regarding the San Juan Unit#3
Energy Exchange Letter Agreement detailing the need to firm up the San Juan power by providing Energy
the unit contingent power to a third party in exchange the counter party provides firm power back Exchange
to the City of which the benefits are simplified scheduling purposes, and by having firm power Letter Agmt
they can optimize around it. He stated that the firming arrangement with the third party will begin Public Service
May 1, 2004; further RFP process was held with detailed guidelines. He recommended approval Company
for the Public Service Company of Colorado. Moved by Councilmember Stanford, seconded by
Chairwoman Chagnon and unanimously carried to approve Letter Agreement for Energy Exchange
of San Juan unit#3 power between City and Public Service Company of Colorado and the Mayor
was authorized to execute the same.
Utilities Director Hsu addressed item regarding the request by San Gabriel Valley Municipal Water
District for the City's support of a jurisdictional boundary reconciliation, stating that when SGVMWD
Mountain Cove was established it straddled on two water districts and there is a difference in tax Jurisdiction
rates. He advised that there is an opportunity to reconcile the boundaries of the two jurisdictions. Boundary
Moved by Councilmember Stanford, seconded by Councilmember Hardison and unanimously* Reconciliation
carried to authorize staff to prepare a letter to express the decision by Azusa Utility Board to San
Gabriel Valley Municipal Water District expressing their hope to reconcile the boundaries of the
two jurisdictions.
Moved by Councilmember Hardison, seconded by Councilmember Stanford and unanimously* Repair Well
carried to declare an emergency and approve the repair to Well No. 1 by General Pump Company No. 1
in the amount of $64,500. The following resolution was adopted and entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA WAIVING FORMAL SEALED Res. 03-C76
BIDDING PROCEDURES AND AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER FOR AN P.O. for
AMOUNT NOT TO EXCEED $64,500.00 FOR EMERGENCY WATER WELL REPAIR. Emergency
Repair Water
09/22/03 PAGE THREE Well
Moved by Councilmember Hardison, seconded by Councilmember Stanford to waive further
reading and adopt. Resolution passed and adopted by the following vote of the Council:
AYES: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: ROCHA, MADRID
r.
Deputy City Manager Gutierrez presented the Fiscal Year 2004-2008 Capital Improvement Dep City Mgr
Program Budget for Electric and Water Projects detailing the new format which included sections Presentation
noting description,justification,scheduling, relationship to General Plan, special consideration and CIP
operating budget impact.
Moved by Councilmember Hardison, seconded by Councilmember Stanford and unanimously* CIP approved
carried to adopt the electric and water projects for the fiscal year 2004-2008 Capital Electric &
Improvement Program (CIP) Budget. This will increase appropriations for projects in the Electric Water Dept
Division by $850,000 and in the Water Division by $4,275,000 as identified in Attachment A.
Staff Reports/Communications Staff Rpts
Assistant City Manager Person presented an update on the San Gabriel River Projects which Update
consisted of the Azusa Canyon River Park, Bike Trail, Forest Station Interpretive Center and the SGR Prjts
Spreading Basins. He then answered questions posed by Councilmembers.
Chairwoman Chagnon suggested that staff contact Supervisor Molina's Office regarding the under Chagnon
grounding pipeline issue with Cal-American Water Company. Comments
Tour of San Juan Power Plant - Assistant Director of Resource Management Tang submitted an Tour of
Overview of the Tour in which Staff participated in a two-day tour sponsored by the Public Service San Juan
Company of New Mexico (PNM) and SCPPA. Other Visitors included City of Banning, Imperial Power Plant
Irrigation District and SCPPA Staff. There was a tour of San Juan #3 Operations and the adjacent
underground coal mine operations and there was an in-depth meeting with plan senior
management.
The Monthly Power Resources Update and the Kirkwall Substation Project Monthly Update were Updates
noted, but, no questions or discussion was held. Pwr Res &
Kirkwall
Director of Utilities Hsu submitted a detailed FY 2002-03 4`h Quarter Work Plan Update; there FY 02-03
were no questions and no discussion was held. Work Plan
Director of Utilities Hsu addressed the Substation Landscape and Front Wall Rendering stating Substation
that there have been a few changes; they have gone from stucco walls and a trellis to block walls Landscape
and mesh. He presented an engineer's rendering detailing its contents and answering questions Discussion
posed by Councilmembers.
Director's Comments Dir Com
Item regarding "an Interview with Larry Anderson, Director, Utah Division of Water Resources," Item con't
Government West, July/August 2003, was continued to the next Utility Board Meeting due to the Re: Larry
absence of Mayo Madrid. Anderson
09/22/03 PAGE FOUR
It was consensus of Councilmembers to recess to Closed Session to discuss the following: Closed Sess
Conference.with Legal Counsel — Existing Litigation Conference
Government Code Section 54956.9(a) W/Legal
Res-Care, Inc., v. City of Azusa Counsel
Case No.: Los Angeles Superior Court No. KC040062 Res-Care
• L 'F
Conference with Legal Counsel — Existing Litigation Conference
Government Code Section 54956.9(a) W/Legal
City of Azusa v. Simich Counsel
Case No.: Los Angeles Superior Court No. KC041085
Conference With Legal Counsel —Anticipated Litigation Anticipated
Government Code Section 54956.9(b) Litigation
Significant Exposure to Litigation — 1 Case
One Case
The City Council recessed to Closed Session at 8:30 p.m. and reconvened at 9:12 p.m. There No Rpts
was no reportable action taken in Closed Session.
It was consensus of Councilmembers to adjourn. Adjourn
TIME OF ADJOURNMENT: 9:13 P.M.
SECRETARY
NEXT RESOLUTION NO. 03-C77.
AZUSA
LIGHT R WATIR
CUSTOMER APPEAL
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: SEPTEMBER 22, 2003
SUBJECT: CUSTOMER BILLING DISPUTE - MR. CHRIS BABAKITIS
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council support the staff
recommendation and decision of the Director of Utilities that the charges billed on this
account are correct.
BACKGROUND
On July 21 , 2003, Mr. Chris Babaldtis, 25251 Vespucci Rd., Laguna Hills, California, wrote a
letter disputing a water bill for the period January 29 - March 27, 2003 for his property
located at 636 W. Arrow Hwy., Covina, California, Account Number 233-0810-04-3. See
details on attached letter to customer dated August 4, 2003 and our chronological notes
regarding this account.
FISCAL IMPACT
Unpaid utility bill is $140.64.
Attachments:
,r. Ertl
9.
Chris Chris
Bababtis-Itr-080403.1 Babakitis-Chronobgic
006
c
August 4, 2003
Mr. Chris Babakitis
25251 Vespucci Rd.
Laguna Hills, CA 92653
Subject: Disputed water bill for January 29 -March 27, 2003
636 W. Arrow Hwy., Covina, CA
Account Number 233-0810-04-3
Dear Mr. Babakitis:
I reviewed your dispute letter dated July 21, 2003 in which you requested $178.57 charge
dismissed. On July 28, 2003 you spoke to Senior Customer Service Representative
Ms, Tapia and stated you wanted that request reduced to$12.07, which represented the
meter charge and usage amount for the period May 12 to June 4, 2003.
Our records show water was turned off at 636 W. Arrow Hwy. on February 4, 2003 but
was being used at this property on February 20 so our field service representative pulled
the meter. On April 2 our meter reader found the water service was illegally connected
so our Water Crew was dispatched to remove the jumper. When our field service
representative revisited the property on April 22 he again found the service was jumpered
and once again the Water Crew was dispatched to remove the jumper. There was a
$50.00 charge for each of the Water Crew visits and this was later explained to you by
Ms. Tapia.
On April 28 you signed up for service. You are correct-you were charged an $80.00 for
Prepayment and $50.00 for Reconnect Charge to have the water meter reinstalled and you
paid the $130.00 total. You did not, however, pay the water bill for the period May 12 to
June 4, 2003. The breakdown of this bill is as follows:
$100.00 two $50.00 Water Crew caA-outs charges to remove the jumpers
on April 2 and April 22
27.00 service charge-charged to all new customers for the
administrative costs of opening an account
12.07 meter charge and usage amount for May 12 to June 4, 2003
.80 Replacement Water Cost Adjustment Factor
.77 Covina Utility Users Tax
$140.64 TOTAL BILL
007
`f
Page 2: Mr. Chris Babakitis
After reviewing your account and the record of events over the past six months, I have
determined that the charges are appropriate and correct. You have deposited a check of
$150.00 along with your letter of dispute. If you agree with my decision you need to
send us another check in the amount of$140.64 so we can return your check($150.00)
deposited for dispute resolution. Or you can authorize the$150.00 check to be applied to
your current balance of$140.64, with a credit of$9.36 to be applied to your next bill.
If you do not agree with my decision, you can appeal to Azusa City Council/Utility Board
by submitting a written request detailing your dispute, addressed to Azusa City Clerk at
213 E. Foothill Blvd., Azusa, CA 91702, within 30 days after receipt of this letter.
However, you need to let us know which action you plan to take before August 15, 2003,
so automatic shut-off for delinquency will not be processed by our billing system.
Thank you for your patience as we looked thoroughly into this matter and gave it every
consideration possible. We value you as a customer and strive to give you excellent
customer service.
Sincerely,
Joseph F. Hsu
Director of Utilities
Cc: Karen Vanca, Assistant Director of Customer Care& Solutions
008
Chris Babakitis July 28, 2003
636 W. Arrow Hwy
Covina, CA
Account No . 2330810043
2-4-03 Turned off for consumption shown, read 334/32
and no one signed up for service; property
vacant
2-20-03 Found water back on--man washing truck
pulled meter read 336/37
4-2-03 Meter reader W. Mandigo found water service
7 um
' ered water crew to handle (have picture)
P
4-22-03 FSR G. Valdez found water service jumpered
Water crew removed c-clamp and jumper
(have picture)
G. Valdez filed a report with Covina P.D.
4-28-03 Owner of property, Chris Babakitis called
to start water service, CSR J. Padilla quoted him
we needed to have $80-Pre/payment, $50-Reconnect
Fee and we would bill $100 on first bill for
additional charges due to repeated service crew
calls (4/2 & 4/22) to turn off meter & removal of
illegal jumpered items . Customer agreed.
7-1-03 Azusa Light & Water sent reminder notice for
$140 . 64 :
$100 . 00 - misc . water charge
27 . 00 - service charge to open account
13 . 64 - water bill for 5-12-03 to 6-4-03
140 . 64
7-21-03 Chris Babakitis called office stating he did not
get advised of $100 charge to his account and
that he would not have agreed to the charge .
Informed customer of dispute process .
7-23-03 Received letter of dispute and check for $150 . 00
7-28-03 I spoke with Chris Babakitis to clarify his letter
stating he wanted $178 . 57 dismissed. He said to
009
cancel that statement and requested "he only
wanted to pay $12 . 07-the meter charge and usage
amount . " He also wanted documentation about the
problems we experienced; that he was not aware of
these.
$12 . 07 Mr. Babakitis is willing to pay excludes
$27 . 00 service charge to open account, $ . 80 RWCAF,
and $ . 77 Covina User Tax.
010
Mountain Cove Residents
at
Sept. 22, 2003
Utility Board Meeting
No. Last Name First Name Address Tel E-mail
1 Dickerson Mark & Barbara 12 W. Whisperin Willow Ct. 626 812-9872 barbnmark12(a�earthlink net
2 En el Ted & Denise 16 W. Mountain Lawel Way 626 334-9012 _mnnt.qi ik-rinnn aol.com
3 Galvan Jane 26 W. Foxtail Ct. 626 812-4383 treyme@earthlink.net
4 Leun Clarence 18 W. Foxtail Ct. 626) 969-9779 cleungQpacificclinics.ora
5 Martin Mark & Lester Kau 21 W. Mountain Laurel Way626 969-3742 editor@mtncove.com
6 5 oliansk Freddie 13 W. Turning Leaf Wa 626 815-1065
sy:\MtCoveResList-092203U BM
l
0F."j,
WWIU
CITY OF AZUSA
MINUTES OF THE SPECIAL
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
WEDNESDAY, JULY 23, 2003 - 6:30 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and time
in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue,
Azusa, California.
Chairperson Chagnon called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON,
MADRID
ABSENT: COUNCILMEMBERS: NONE
Also Present
ALSO PRESENT:
City Manager Cole, Director of Utilities Hsu, Administrative Technician Yang, Assistant City
Manager Person, Information Systems Administrator Graf-Gaynor, City Clerk Mendoza, Deputy
City Clerk Toscano.
Public Participation Pub Part
None. None
An item of subsequent need arose after the posting of the agenda regarding a personnel matter Item of sub
and it was moved by Councilmember Stanford, seconded by Councilmember Chagnon and Sequent
unanimously* carried to agendize it under the Closed Session portion of the agenda as follows: Need
Government Code Section 54957, Public Employee Discipline/DismissaVRelease. Closed Sess
The CONSENT CALENDAR consisting of Items 11-A through II-F, were approved by motion of Con Cal
Councilmember Stanford, seconded by Mayor Pro-Tem Rocha and unanimously carried. Agenda Approved
item Il-D, regarding the Water Main Installation Project was removed from the Agenda by Utilities
Director Hsu.
0I t
A. The minutes of the regular meeting of June 25, 2003, were approved as written. Min appvd
B. Approval was given to waive formal bidding procedures and approve the agreement with Agmt w/Huls
Huls Environmental Management, LLC, for administration of the City's used oil block grant Used Oil
Block Grant
program.
C. Authorization was given to advertise for bids to replace water mains for four separate Wtr Mains
projects: W-186/Alameda Avenue; W-187/Old Mill Road;W-188/Pasadena Avenue; and W- Rplcmt
189/Stein Lane.
D. REMOVED FROM THE AGENDA Water Main Installation Project of Sixth Street Distribution. REMOVED
E. Authorization was given to issue a purchase order to Pacific Systems Electric in the amount Pacific
of$20,848.80 to perform necessary upgrades and repairs to the gasoline tank located at the Systems
Water Division's Gladstone Maintenance Yard. Upgrades
F. Approval was given to adopt the plans and specifications for furnishing and installing Plans &Spec
underground electric substructures along Gladstone Street between Vincent and Vernon Underground
Avenue and the City Clerk was authorized to advertise for bids. Elec substrc.
SPECIAL CALL ITEMS Special Call
None.
None
Scheduled Items Sched Items
Director of Utilities Hsu presented a request to increase the power purchase with PPM Energy, Dir of Util
Inc., from three megawatts to six megawatts of wind powered electrical energy. He stated that Comments
this is very viable and a cost effective way for the City to meet and exceed the renewable energy
portfolio standard. He stated that the purchase will constitute an additional 4%of energy to serve
retail load and when combined with the previous purchase and City's Hoover energy, it will
provide the City with approximately 1 1%of renewable energy to serve its retail load. Further,that
the proposed PPM contract is a fixed price contract for the next twenty years.
Moved by Councilmember Stanford, seconded by Mayor Madrid and unanimously carried to Agmt w/PPM
approve the purchase of three additional megawatts of wind power from PPM Energy, Inc. Energy, Inc.
("PPM") and to authorize the Mayor to execute the agreement with PPM for the purchase of six Purchase of
megawatts once the final agreement is prepared for the purchase of wind powered electrical Wind power
energy.
Staff Reports/Communications Staff Rpts
Director of Utilities Hsu invited all Board members to the High Winds Project Dedication Dir of Util
Ceremony on Thursday, September 18, 2003. He stated that PPM Energy will be holding the High Winds
ceremony in Solano which is located about 1/2 hour from Napa. He stated that the developer will Project
hold a dinner on Wednesday, September 17'hand that the next day the bus will leave the hotel at Dedication
9 a.m. and the dedication ceremony will be from 11 a.m.— 1 p.m. He asked that members advise Ceremony
him if they will be attending in order to make arrangements. 9/18/03
Director of Utilities Hsu presented the Power Resources Report stating that there is nothing Pwr Rsrse
extraordinary in the report. He provided an update on the rating agency issue, stating that for Ratings
water and electric Moody was A2 for water and electric, Standard Pool—water AA and electric A. Water &elect
07/23/03 PAGE TWO 012
Director's Comments Dir Com
-I City Manager Cole addressed the Utility Board regarding its Technology Policy, stating that at the City Mgr
last meeting staff had shared that it seemed preferable to switch to fiscal year basis for the Comments
existing Technology Allowance for Utility Board members versus an arbitrary date like the first of Tech Allow
the month, which the Utility Board accepted. He stated that staff had also thought that the Discussion
allowance covered new hardware as well as services and he proposed that all Board members
receive a $2,000 allowance per year, $166.00 per month to cover all services, including cell
phones, DSL lines, pagers, fast lines, etc. He detailed the proposal. Discussion was held
regarding the way it's handled currently. Mayor Madrid stated that there should be a policy that
states everything very clearly. Information Technology Administrator Graf-Gaynor advised that she
has reconciliation of all bills paid and explained the phone service that is now used by the City.
City Manager advised that they have a written hardware technology policy now.
Utility Funds Transfer Policy—Discussion was held regarding the return on investment from the Utility Funds
Utilities Enterprise Divisions with Councilmembers stating that a return on investments should be Transfer
realized and reinvested for use for the betterment of the stakeholders, which are the residents of Policy
Azusa. It was noted that there is a lack of a policy to establish parameters for what, where and Discussion
how to deal with the return on investments. There was a question about what to do with the
revenue after it goes to the general fund, how much funds should/can be used and how much is
too little or too much.
Director of Utilities defined the Franchise fee, and In-Lieu Tax, but questioned the Allocations. He Dir of Util
voiced concern that the level of allocations totaling $1.4 million, are without a formula or Comments
justification for this amount.
City Manager Cole responded stating that allocations are service charges for the services provided City Mgr
to the Utilities building/department, i.e. Accounting, Purchasing, Human Resources, etc. He Comments
responded to questions posed stating that allocations are levied on Sewer, Light,Water, Prop A
and Prop C Funds.
Chairperson Chagnon stated that the allocations should not be so expensive as the Utilities Council/Staff
Department could possible contract out to do its own payroll, etc. and that there should be a fair Comments
assessment. Mayor Madrid commented that she prefers return on investment and franchise fees
instead of allocations. Director of Utilities Hsu provided a short history of the In-Lieu Tax. He
further stated that he will visit with Acting Finance Director Kenoyer to see how he arrived at the
$1.4 million allocation cost and to see if they can be reduced. City Manger Cole provided a
summary of the legal environment principles, the City of Roseville and Proposition 218.
Director of Utilities Hsu addressed the rate of return or return on investment stating that today the Dir of Util
electric and water return interest are transferred to the General Fund. He stated that since interest Comments
goes up and down, how do you determine how much is appropriate. City Manager Cole
explained that they are talking about looking beyond interest and into the profit, rather to be tied
to interest, as it fluctuates. He described examples of combinations of funds that may be used,
i.e., %of net income, interest income, etc. Lengthy discussion was held regarding a process to
determine how and how much money to allocate, and the need for a policy to be in place.
Chairperson suggested that the issue be sent back to Director of Utilities to work on a policy and
get the specific information for the issue.
Additional discussion was held regarding allocations and how Finance arrived at the figures on the Add'I
twelve page report. Each Councilmember expressed concern regarding calculations and Discussion
fluctuations of the allocations and noted that there is a need for an allocation mechanism of how
to measure them so everyone will understand how they work.
07/23/03 PAGE THREE
013
City Manager Cole recounted what Councilmembers have agreed on at this meeting as follows: City Mgr
"that there is agreement that there should be in addition to the 100%transfer (2%Franchise,8%In- Comments
Lieu Tax) there should be an annual return on investments that should strike a balance between
the ownership stake, historic,and on-going that should be used for the benefit of the owners and
the desire to keep the two enterprise funds solvent and operating on a capital basis and therefore
the policy should attempt to have a predictable formula for allocating that income, one that starts
with a base amount that when possible is transferred and then a percentage on top of that base
amount that would be earmarked over and above on a very good year and that allocations would
only come into the picture if they could agree on a citywide formula that make some sense that
everyone's happy with and that would then factored in and since the net income would be
reduced then therefore the transfer from whatever fund would be reduced, so it should be hold
harmless, it shouldn't affect the fiscal health of the utility nor the return on investments to the
owners". He then talked about keeping the general fund whole on operations, but, that any
annual spike should be set aside for CIP, and not for hiring people, etc.
Director of Utilities Hsu responded to question regarding a recent power outage in the Stater Dir of Util
Brothers and Sizzler shopping center. He also stated that Monday,August 1 10,at 4:30 p.m. will Comments
be the Sub-Station Groundbreaking.
Assistant City Manager Person also announced that there will be a workshop on August 1 Ith on Ass't City Mgr
Pubic Strategies and Code Enforcement at 6:30 p.m. at Light and Water Conference Room and Ancmt
there will be no Utility Board meeting on August 25`h and no Council meeting on August 18".
It was consensus of Councilmembers to adjourn. Adjourn
TIME OF ADJOURNMENT: 7:38 P.M.
SECRETARY
NEXT RESOLUTION NO. 03-C63.
07/23/03 PAGE FOUR
014
joy
AZUSA
i-M. {WA4
0
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES ^, /
DATE: SEPTEMBER 22, 2003 v
SUBJECT: APPROVAL TO ADVERTISE FOR BIDS- REPAIRS TO WELL NO. 2
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve the Advertisement for
Bids for repairs to Water Well No. 2.
BACKGROUND
Water Well No. 2, located at the Spreading Ground Wellfield, has developed a large cavern
around, and at, the bottom.of the casing, possibly due to years of sand pumping. The well
casing has also aged and requires relining; the well will require redevelopment once the new
lining and gravel pack have been installed. When it is running, Well No. 2 is the Water
Division's largest producing well and needs to be put back in production to increase the Water
Division's production and operational capability. To date, the other wells of the wellfield are
producing enough water to meet the system needs.
FISCAL IMPACT
Approval to let this project out to bid has a minimal fiscal impact for the cost of duplication
and handling of bid packages. Fiscal impact of the project will be discussed in detail when the
low bid contractor has been determined, and the Board is asked to approve a contract for the
project with that contractor.
Prepared by:
Chet F. Anderson, Assistant Director- Water Operations
015
IV
1 Ulm'
AZUSA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES `^,
DATE: SEPTEMBER 22, 2003 V �(
SUBJECT: APPROVAL TO ADVERTISE FOR BIDS- MAIN REPLACEMENT PROJECT W-186
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve the Advertisement for
Bids for Water'Project W-186, Main Replacement in Pasadena Avenue, Old Mill Road,
Alameda Avenue, and Stein Lane.
BACKGROUND
The Water Division has an aggressive program of replacing water mains that are experiencing
problems with leaks and that are, for various reasons, experiencing flow and pressure
problems. The mains to be replaced in this project have both leak problems requiring constant
repair and deliver less flow than is optimal for current residential area standards. Also, the
mains to be replaced are in streets designated by Public Works as streets to be resurfaced
next year. This project will allow the Water Division to lessen the probability of leaks within
the newly paved streets.
FISCAL IMPACT
Approval to let this project out to bid has a minimal fiscal impact for the cost of duplication
and handling of bid packages. Fiscal impact of the project will be discussed in detail when the
low bid contractor has been determined, and the Board is asked to approve a contract for the
project with that contractor.
Prepared by:
Chet F. Anderson, Assistant Director- Water Operations
016
i 1
__ ACUSt'1
t CMT i WFlfl
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES l
DATE: SEPTEMBER 22, 2003 V
SUBJECT: APPROVAL OF CONTRACT WATER RATE FOR MILLER BREWERY
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve the Contract Water Rate
for Miller Brewery, Irwindale, California.
BACKGROUND
In February 2002, the Azusa Utility Board/City Council approved Water Supply Agreement to
provide water service to Miller Brewery. The Agreement authorized parties to agree upon a
water rate (Permitted Rate), which was agreed to as the same rate that was being applied to
Golf Course. The rate in effect for the Golf Course was $0.94 per hundred cubic feet (CCF)
plus monthly Meter Charge when water delivery to Miller began on June 7, 2003.
Since the Agreement with Miller Brewery requires that the Permitted Rate be in effect for one
year before it can be adjusted, the recent 4.35% adjustment in the Golf Course water rate
cannot be applied to Miller Brewery. Therefore, staff seeks your approval to establish a
Contract Water Rate for Miller Brewery which in effect is to continue applying the same rate
as was agreed upon when Miller Brewery began taking water in June, 2003.
FISCAL IMPACT
While the difference between the Golf Course Rate and the Miller Brewery Rate is $0.04 per
CCF, imposing the higher rate on Miller Brewery would be a breach of contract and cause for
dispute and potential termination of Agreement, and would result in a substantial loss of
revenue to the Utility.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
017
A6USA
t'LMi 4 M'< f�
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES^p/
DATE: SEPTEMBER 22, 2003 v
SUBJECT: APPROVAL OF SAN JUAN UNIT #3 ENERGY EXCHANGE LETTER AGREEMENT
BETWEEN THE CITY AND THE PUBLIC SERVICE COMPANY OF COLORADO
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the Letter Agreement for
Energy Exchange of San Juan unit #3 power between the City and the Public Service Company
of Colorado (PSCo) and authorize the Mayor to execute the agreement upon the preparation
of the execution copy.
BACKGROUND
Since 1998 the City has been actively managing its power resources. Due to the unit
contingency nature of City's San Juan resource and the predominant importance of San Juan
resource to the City, the City has almost always mitigated the operational and risk
management complexities of managing this resource by entering into contractual
arrangements with third parties to exchange or otherwise sell the San Juan unit output and
purchase firm resources to meet our retail needs.
Due to the soon-to-be expired contractual arrangement for firming San Juan energy, staff has
reexamined the options for firming San Juan power commencing May 1, 2004. The detailed
analysis of the options for San Juan energy is encompassed in the attached report.
Based on this examination and the evaluation of four proposals received for firming San Juan
power, the proposal submitted by PSCo stood out as the best proposal from the financial
standpoint. The proposed arrangement has an expected monthly cost of between
$22,050/month to $52,920/month. The low end of monthly cost will be achieved if San Juan
unit 3 has low forced outage rate, and the high end of monthly cost will occur if San Juan unit
3 has high forced outage rate. The projected monthly cost of this arrangement at historical
San Juan availability rate of 90% is $29,800/month. Given that PSCo's proposal is the best
amongst proposals evaluated by staff, staff is recommending its approval.
r
FISCAL IMPACT
Funds have been budgeted to pay for San Juan firming arrangement for current fiscal year and
will be budgeted accordingly in the next fiscal year for the proposed contractual arrangement
with PSCo.
Prepared by: Bob Tang, Assistant Director of Resource Management
ATTACHMENT:
Power Resource
Strategy 2004.doc
019
MEMORANDUM
TO: Joe Hsu
FROM: Bob Tang,Richard Torres,Tim Vuong
SUBJECT: RESOURCE PLAN FOR Ql, Q3 AND Q4 2004
DATE: SEPTEMBER 9, 2003
PROBLEM STATEMENT:
The City has procured sufficient power resources to meet its forecast load requirements
for Q2, Q3 and Q4 of calendar year 2004. The following are the available resources:
San Juan: 30 MW round the clock
Palo Verde: 2 MW round the clock
Hoover: 4 MW peaking
Duke (Jun-Sept): 15 MW summer peaking
PPM Wind: 2 MW round the clock
Total: 53 MW for the months of June through September, 2004
38 MW for the months of May, October through December 2004
The following are the issues we have to deal with in the quarters of this study:
1. The transmission path for San Juan resource(from Palo Verde Hub to Souther
California) is anticipated to be heavily congested, as shown by the price spreads
between the Palo Verde hub and Southern California in the forward markets for
the time period, of more than $5/MWh.
Although the same price spread patters occurred this summer between Palo
Verde and Southern California in the forward markets, the actual price spreads at
the delivery time between these two hubs were not as significant as the forward
market spreads. Staff believes what happened this summer can be partially
explained by(a) this summer has been considerably warmer than normal in
Southern California and much more so in the Southwest, thus the majority of the
new generation output in the Southwest which was anticipated to head to
California ended up been consumed locally and therefore not causing the
anticipated strains in the transmission system from Palo Verde into Southern
California; (b) the new generation anticipated to come on line did not come on
entirely, some of the generation is now expected to come on line later this year;
and(c) due to the new operating environment for the new generation, folks are
being more conservative in their transmission scheduling and thus less locational
differences in prices.
020
In staffs view, the current price spreads for next Q2, Q3, and Q4 are reasonably
expected due to all the generation which will be online by then, and the known
transmission constraints
2. Our San Juan power is unit contingent,making it much less desirable to market
unless discounted in price.
3. We have limited access to Palo Verde Hub for a portion of our San Juan, about 10
MW of access.
4. We will not have any access to the Northwest market in the coming year due to
expiration of our transmission contract with Edison.
5. The natural gas prices continue to be very volatile. On the downward price
pressure side: (a)the storage injection going into the winter season is in much
better shape than just a few months ago; (b) forward gas prices for the next twelve
months remain high causing some sustained demand"destruction"in the near
term; (c) gas drilling activities remain healthy compared to historical standard. On
the upward price pressure side: (a)the economy is showing signs of strengthening
and thus suggesting higher consumption; (b) fuel switching options are limited
due to increased pricing in alternative fuel sources; (c) higher drilling activities
are not translating into proportionally higher gas production due to increasing
depletion rate of gas wells.
Given the above, it is unclear the direction of gas prices for the next twelve to
eighteen months. If we face a normal winter this year, the gas prices may crater
due to the above downward pricing pressures. However, if we face a colder than
normal winter combined with the return of industrial loads, then the prices may go
higher.
In any event, staff believes the gas price volatility going into this winter should be
less and more limited than the past winter, due to the healthier fundamental
factors of gas drilling activities, the expectation of a more normal winter, and the
lingering demand reductions. .
What this all means is: staff expects the price of electricity to remain stable and
closely correlated with the natural gas prices in the West, and thus has a
downward bias vs. the current forward prices.
021
The problem we want to solve is stated as follows:
We want to minimize the costs of servine our load requirement
by utilizing our existing power resources and transmission
access while taking into account the price volatility,
transmission congestion problems, credit risks and
operational feasibility.
OPTIONS CONSIDERED:
The staff has considered the following options centered on our single largest resource; the
San Juan unit 3. The options are as follow:
Option l:
The City sells the entire San Juan output as is, i.e. on a unit contingent basis at fixed
price, and buys back at the same time the same amount of power at fixed price.
Advantages of this option:
a. The cost of"firming" San Juan is known a priori, i.e., the price discount the City
will necessarily take when selling unit contingent product. Thus we can budget
with precision the cost of firming.
b. "No hassle", once the San Juan output is sold, we don't need to worry about the
"ups and downs"of the unit performance. Our task becomes a financial risk
management activity as opposed to system operational activity in addition to
financial risk management activity.
Disadvantages of this option:
a. We may be foregoing the opportunities of lower replacement power costs if the
prevailing spot market prices for replacement power are lower than the fixed
prices we lock ourselves in.
Option 2:
The City firms up San Juan output by paying a fixed finning premium and are subject to
spot market prices if San Juan unit is forced out or derated.
Advantages of this option:
022
a. The cost of"firming" San Juan is known a priori, i.e., the price discount the City
will necessarily take when selling unit contingent product. Thus we can budget
with precision the cost of firming.
b. "No hassle", once the San Juan output is sold, we don't need to worry about the
"ups and downs"of the unit performance. Our task becomes a financial risk
management activity as opposed to system operational activity in addition to
financial risk management activity.
Disadvantages of this option:
a. We maybe subjecting ourselves to much higher spot market prices when we need
to purchase replacement power for San Juan outages.
ECONOMIC ANALYSIS:
Staff has considered and has analyzed both options above by conducting an informal
request for quotes of the two products described above.
The scenarios and quotes considered are as follow:
Scenarios:
Seven scenarios are considered in terms of the relative pricings between the spot prices
and forward market prices for the study period.
Scenario A: Assumes spot prices are the same as forward prices
Scenario B: Assumes spot prices are 5%higher than the forward prices
Scenario C: Assumes spot prices are 10%higher than the forward prices
Scenario D: Assumes spot prices are 20%higher than the forward prices
Scenario E: Assumes spot prices are 5% lower than the forward prices
Scenario F: Assumes spot prices are 10% lower than the forward prices
Scenario G: Assumes spot prices are 20% lower than the forward prices
For Option 1, staff made two different assumptions regarding the price discounts of
selling unit contingent and buying firm: 5% and 10%discounts. The discounts are
reasonable representation of the market for these two distinct products based on recent
observations in the marketplace. 5%represents the aggressive discount and may not be
achievable in reality on a sustainable basis, whereas 10% discount represents a more
achievable discount on a sustainable basis.
For Option 2, staff received binding quotes from the following entities Party A, Party B,
Public Service Company of Colorado (PSCo), and the current provider of this service
Party C (the identities of the parties other than the winning party are kept confidential due
to bidding requirements)
023
The attached graphs , aphsaA.�1j i, 2A-2F)represent the graphical representation of
per unit costs of the options under the scenarios considered.
RESULT:
The following conclusions can be drawn from the graphs:
1. Under a low discount off(5%discount) the firm price scenario, option 1 is
the best option in a high spot market price environment. This is not
surprising, given that at low discount off firm price, we incur fewer fees in
firming service, and since the firm power we buy is at lower fixed price
than the spot market price, it is definitely a winner.
2. Under a reasonable discount off(10%discount)the firm price scenario,
option 1 is NOT THE BEST OPTION unless San Juan availability is
extremely low(less than 70%) and spot market prices are much higher
than the forward market prices.
3. Among the proposals for Option 2, the proposals from Party A and PSCo
stand out as being almost indistinguishable in terms of cost per unit of
MWh fumed. Proposal from Party B does not stand out as "winner"unless
San Juan availability is extremely low(less than 70%). Proposals from
Party C never stood as "winner"under any of the scenarios nor at any
levels of San Juan availability.
OUTLOOK OF THE FUTURE:
Although the forecast of the future is always a tricky business, staff believes the
following is a reasonable forecast of the future (for the study period)based on the current
information:
a. San Juan availability is forecast to be at or above the historical performance level
of mid 80%to low 90% for the study period. Staff assessment is based on the fact
that San Juan unit 3 will have a three-week scheduled maintenance outage in the
spring of 2004, so it is expected that the unit should be in superior performance
level for the period immediately following the scheduled maintenance outage.
b. The forward market prices are good indicators of the spot market prices for the
study period. Given the stability of spot market prices this spring and the summer
even under a warmer than usual summer and the strong correlation of gas prices
to electricity prices, and the anticipated healthy gas market in the next twelve
months, staff forecast that the spot market will remain stable without major"blow
out" and"bear market' and thus the sensitivity range considered by this study of
minus to plus 20% off the forward market prices is adequate representation of the
future spot market price range.
024
RECOMMENDATION:
Given the above discussion, staff recommends the management to consider Option 2
(Firming Option) as the chosen option for Q2, Q3, and Q4 2004. Further, staff
recommends choosing Party A and PSCo proposals for further consideration and
negotiation. However, staff is interested in management view in this selection which is
purely based on the economics of the proposals. Management may wish the staff to
consider other factors or criteria in the evaluation.
WORD OF CAUTION:
1. The recommended strategy DOES NOT MITIGATE the exposure to spot market
volatility inherent when San Juan unit is forced out.
2. The recommended strategy DOES NOT MITIGATE any unforeseen patterns of
transmission congestions. However, since the City does have some degree of
protection against transmission congestion at those trading hubs, the calculated
risk we are recommending is probably the best we can conceivably do at this
time.
If the above recommendation accepted y management,is acc ted b mana then the staff recommends the
following process to bring the planning process to a closure:
Step 1: Commence discussions with Party A and PSCo for the final proposal to be
chosen and make determination by Wednesday, September 9, 2003.
Step 2: Finalize contractual negotiations by September 17, 2003.
Step 3: Seek Utility Board approval on September 22, 2003
CREDIT BACKGROUND INFORMATION REGARDING PARTY A, PARTY B,
PARTY C, AND PSCo
Party A,B, and C's credit background information withheld to protect the identities
of these parties.
PSCO:
Rated BBB by S&P. The parent company had a tough time in extricating itself from the
now bankrupt merchant subsidiary NRG. PSCo continues to be regulated utility and thus
may lessen credit concerns somewhat.
In
X:\Forecasting\sJ -
Fiming Option For Q(
025
AZUSA
t exr�xare�
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: SEPTEMBER 22, 2003
SUBJECT: REQUEST BY SAN GABRIEL VALLEY MUNICIPAL WATER DISTRICT WHETHER
THE CITY WOULD SUPPORT JURISDICTIONAL BOUNDARY RECONCILIATION
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council deliberate the issue as explained
below and authorize staff to prepare a letter to express the decision by Azusa Utility
Board/City Council to San Gabriel Valley Municipal Water District (the "District").
BACKGROUND
I was recently contacted by the General Manager, Mr. Jim Frei, of the District regarding its
jurisdictional boundaries of the City and the City's current boundaries. There might be an
opportunity to reconcile the boundaries of the two jurisdictions as he put it.
The District was formed in 1958. Azusa, Alhambra, Monterey Park, and Sierra Madre are four
members of the District. The District issued long-term bonds to finance the acquisition of
rights to the State Water Project. The District makes bond payments from tax levied on all .
properties within each city. Azusa's City boundaries today are much greater than they were in
1958, due to many annexations since then. However, the District has not been able to annex
the same properties as the City has done.
It is my understanding that the District has been in discussion with neighboring districts
having taxing authority over those properties within the City but outside the District
boundaries, and it appears there might be a willingness of the districts involved to "square
off' their boundaries to align with the City's.
026
Page 2: Honorable Azusa Utility Board/City Council, 9/22/03
Mr. Frei asked me to seek your direction whether your want to support this proposition.
FISCAL IMPACT
No fiscal impact.
Prepared by: J. Hsu
027
L %
AGLI4.OUT §A
Trk
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: SEPTEMBER 22, 2003
SUBJECT: APPROVAL OF EMERGENCY REPAIRS TO WELL NO. 1
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council declare an emergency and
approve the repair to Well No. 1 by General Pump Company for the amount of $64,500.
BACKGROUND
Approximately six weeks ago, Well No. 1 at the Spreading Ground Wellfield experienced a
severe reduction in water output. The pump was pulled from the ground by General Pump
Company under their Blanket Purchase Order with the Water Division. Once the pump was
pulled, it was discovered that the pump had fouled with some debris in the casing and that it
had been damaged. Well No. 1 is the primary supply of water to Miller Brewing and had to be
put back in operation as soon as possible. General Pump was instructed to proceed with the
repairs as detailed in their cost breakdown dated August 21. The repairs have been completed
as of the date of this Agenda Item. In the interim, the other wells at the Spreading Grounds
were able to provide water to supply Miller Brewing.
FISCAL IMPACT
Funding for repairs will come out of the Capital Improvement budget.
Prepared by:
Chet F. Anderson, Assistant Director- Water Operations
Attachment:
Reso Re Well No.
l.doc F)2 8
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AZUSA WAIVING FORMAL SEALED
BIDDING PROCEDURES AND AUTHORIZING THE
ISSUANCE OF A PURCHASE ORDER FOR AN
AMOUNT NOT TO EXCEED $64,500.00 FOR
EMERGENCY WATER WELL REPAIR.
WHEREAS, Section 2.537 of the Azusa Municipal Code requires City
purchases over the amount of $5,000 to be awarded to the lowest responsible
bidder after notice; and
WHEREAS, Section 2.536 of the Azusa Municipal Code allows the City
Council to waive formal sealed bidding upon finding that the public welfare
would be promoted by dispensing with them; and
WHEREAS, an emergency situation resulted in the need to repair a
pump at Well No. 1 rapidly in order to ensure public welfare was served; and
WHEREAS, an open purchase order was used rather than formal bidding
procedure, to retain the services of General Pump Company to complete the
needed repair work.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES
HEREBY FIND AS FOLLOWS:
Section 1. That the formal sealed bidding process is waived; and
Section 2. That a Purchase Order, not to exceed $64,500.00, is
hereby authorized to be issued to General Pump
Company for Emergency Repairs to Well No. 1.
PASSED, APPROVED AND ADOPTED this 22nd day of September, 2003.
CRISTINA CRUZ-MADRID, MAYOR
029
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by
the Utility Board/City Council of the City of Azusa at a regular meeting thereof
held on the 22nd day of September, 2003.
AYES: BOARD/COUNCIL MEMBERS:
NOES: BOARD/COUNCIL MEMBERS:
ABSENT: BOARD/COUNCIL MEMBERS:
VERA MENDOZA, CITY CLERIC
030
- AZk5A
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
J
DATE: SEPTEMBER 22, 2003
SUBJECT: FISCAL YEAR 2004-2008 CAPITAL IMPROVEMENT PROGAM BUDGET FOR
ELECTRIC AND WATER PROJECTS
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council adopt the electric and water
projects for the fiscal year 2004 - 2008 Capital Improvement Program (CIP) Budget. This will
increase appropriations for projects in the Electric Division by $850,000 and in the Water
Division by $4,275,000 as identified in Attachment A.
BACKGROUND
The CIP budget identifies funding for major capital improvement projects throughout the
city's infrastructure. As part of this report, staff is only recommending funding for projects
that fall within the categories of electric projects and water projects. This year modifications
have been made to previously adopted projects and a total of six new projects have been
added to the electric and water categories.
Annually, the staff goes through a process that reviews the current projects in the CIP and
determines if the project should be deleted due to completion; modified due to a change in
scope; or amended to include additional funding. Staff also identifies new projects that need
to be added to the list of capital projects.
Attached to this report are project pages which provide the following information for each,of
the projects identified in this year's CIP: fiscal information that shows the total estimated
cost of the project and fiscal year funding appropriations; project description; justification for
including this project; scheduling of the project; the relationship of the project to the General
Plan; any special considerations regarding the project; and potential future cost that will
impact the annual operating budget. This infgrmation is intended to provide a comprehensive
overview of the capital projects.
FISCAL IMPACT
The fiscal impact of projects for the Fiscal Year 2004-2008 is $766,667 from retained
earnings in the Light Fund and $4,358,333 from retained earnings in the Water Fund.
Prepared by:
Julie A. Gutierrez
Deputy City Manager
Project Suarrary.xls Electric Projects.doc Water Projects.doc
032
Attachment A
FY 2004
Project # Project Title Total Est. Cost lAppropriation I Funding Source
Electric Division
73001 G City Yard Design & Construction 2,200,000 450,000 Light Fund
Electric & Water Utility Data
New project Conversion 250,000 166,667 Light Fund
83,333 Water Fund
250,000 Total
Refurbish Existing Electric Utility
New project Service-Civic Center 150,000 150,000 Light Fund
Total Appropriations 850,000
Water Division
Well No. 10 Treatment Plant Design
New project and Construction 2,000,000 2,000,000 Water Fund
Well No. 10 Treatment Plant
New project Structure 200,000 200,000 Water Fund
WTP Landscape, Design and
New project Installation 75,000 75,000 Water Fund
New project lWater Main Replacement 2,000,000 1 2,000,000 lWater Fund
Total Appropriations 4,275,000
C7
G3
W
FY 2003-2004 Capital Improvement Program
Electric Division
Substation Construction &Distribution
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
I Substation Construction & Distribution
(82000B
Light Fund 10,260,000 10,260,000
DESCRIPTION: This project includes a new 66-12 kV Electric Substation at 1160 W. Gladstone Street (Kirkwall Substation),
extension of the Edison transmission lines to the substation and Azusa distribution lines from the substation to Azusa's 12 kv system.
JUSTIFICATION: The addition of the new substation, south of the 210 Freeway, adds flexibility of operation and system reliability.
SCHEDULING: Construction will start by September 2003 and it is expected to be completed by the third quarter of this fiscal year.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: Operation and maintenance cost increase by $ 200,000 per year,plus bond (dept service)
payments. hi next year's operating budget, this expenditure will be appropriated.
CJ
W
�Fa
FY 2003-2004 Capital Improvement Program
Electric Division
Owl Distribution Circuit Line Extension
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
2 Owl Distribution Circuit Line Extension
(84000A
Light Fund 334,277 334,277
DESCRIPTION: The project is to provide a main line tie between the Owl and the Hilltop 12 KV
Circuits. Originally budgeted as part of this project, Phase II of the Owl and Hilltop 12 KV Circuit Line Extension conduit and vaults
has been transferred to a separate capital project under the San Gabriel Avenue Medium Project for a cost of$475,723
JUSTIFICATION: The project will improve the switching capabilities between the circuits in the north end of Azusa. The two
circuits provide electrical service to homes and water facilities in the north end of town.
SCHEDULING: Expected completion date fourth quarter of 2003. The contractor Pima Construction completed the conduit and
vault installation in July. Cable for the project is on order and will be installed by electric crews.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATION: The original amount appropriated for this project was $810,000 from the Light Fund. hi fiscal year
2003, a total of$410,000 was transferred to San Gabriel Medium Project and in fiscal year 2004 an additional $65,723 has been
transferred.
OPERATING BUDGET IMPACT: Operation and maintenance cost increase minor.
C>
Cil
U1
FY 2003-2004 Capital Improvement Program
Electric Division
City Yard Design & Construction
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
3 City Yard Design & Construction
(73001G
Light Fund 2,200,000 1,750,000 450,000
DESCRIPTION: This project is to design and construct a new building for the Electric Division crews who will be relocating out of
the Angeleno Yards.
JUSTIFICATION: This project is necessary to alleviate the over crowed conditions currently existing at the Angeleno Yard
SCHEDULING: The building at 1020 W. 10th street was purchased last fiscal year. The architect is working on retrofitting the
building design to meet code requirements for a public building, plus the addition of a meter shop lunchroom etc. The new building
will be ready for occupancy by the end of fiscal year 2004.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: The additional $450,000 for this project will be used to retrofit the building.
OPERATING BUDGET IMPACT: Operations and maintenance cost increase for building and landscape maintenance.
C3
W
FY 2003-2004 Capital Improvement Program
Electric Division
Street Light System Replacement Eleventh Street
Total Appropriated FY 2005
Estimated Through Adopted Recomud To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
4 Street Light System Replacement Eleventh Street
73001F)
Light Fund 560,000 1 560,000
DESCRIPTION: The first phase of this project is located between 11'h (north) and 12a' streets from San Gabriel to Orange Avenue.
It includes the replacement of existing high voltage underground street light cable, conduits and fixtures with new low voltage
system (120/240 volts).
JUSTIFICATION: The existing old voltage street light system is deteriorating and repair parts are becoming difficult to find.
SCHEDULING: Phase 1 of this project is expected to be completed by the second quarter in fiscal year 2005 and will cost an
estimated $225,000.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: Operations and maintenance cost will decrease with new low voltage street light system.
�1
FY 2003-2004 Capital Improvement Program
Electric Division
Distribution Monitor and Automation Phase 1
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
5 Distribution Monitor and Automation Phase 1
73002B
Light Fund 750,000 251,000 500,000
DESCRIPTION: This project is for the replacement of existing electric relays at the Azusa Substation located at 809 North
Angeleno.
JUSTIFICATION: In Phase 1, the existing relays are nearing the end of their projected life cycle of 15 years. The new relays will
provide some monitoring and automation capabilities that the current relays lack. Phase 2 & 3 distribution monitoring and automation
to follow in fiscal years 2005 and 2006.
SCHEDULING: This project is scheduled to begin Phase I construction in the fourth quarter of fiscal year 2004. Funding for Phase
II and III will be appropriated in the future.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: Operations and maintenance cost will not be impacted
FY 2003-2004 Capital Improvement Program
Electric Division
City Wide Underground Line Extension
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
6 City Wide Underground Line Extension
73001E
Light Fund 1 600,000 1 600,000
DESCRIPTION: This project provides for the undergrounding of electrical lines. Although there in no current project anticipated at
this time, Azusa Pacific University Krems was previously completed under this project.
FY2000/2001
JUSTIFICATION: This project will enhance the aesthetic quality of the streetscape by removing unsightly utility poles and
overhead wires.
SCHEDULING: This project will continue to be scheduled as specific undergrounding projects are identified and funding is
available
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
t�
CC1
FY 2003-2004 Capital Improvement Program
Electric Division
Electric &Water Utility Data Conversion
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
7 Electric &Water Utility Data Conversion
newproject)
Light Fund 166,667 166,667
Water Fund 83,333 83,333
TOTAL 250,000
DESCRIPTION: Utility data conversion services and data gathering of field attributes after completion of city aerial photography.
JUSTIFICATION: Conversion of new and existing electric/water utility system infrastructure data and field attributes into new
City base aerial photo map.
SCHEDULING: Implementation scheduled after city aerial photo is complete.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
GAJ
�1
FY 2003-2004 Capital Improvement Program
Electric Division
Refurbish Existing Electric Utility Service-Civic Center
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 . Estimated Cost
8 Refurbish Existing Electric Utility Service-Civic
Center
newproject)
Light Fund 150,000 150,000
DESCRIPTION: Remove old service equipment and install above ground padmounted transformers for electric service at Civic
Center.
JUSTIFICATION: Preventative maintenance and replacement of old equipment located in basement vault of city hall will provide
reliability of service.
SCHEDULING: This project will be scheduled in the later part of fiscal year 2004
RELATIONSHIP TO GENERAL PLAN: None
OPERATING BUDGET IMPACT: None
FY 2004-2008 Capital Improvement Program
Water Division
Replacement of Waterlines
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
1 Replacement of Waterlines
72101L
Water Fund 473,000 473,000
DESCRIPTION: To facilitate the service of water to the Mountain Cove development, the developer was required to install
backbone waterlines, specifically 3000 LF of 20" and 16"pipelines. The Water Division required the developer to oversize the
waterlines to provide water service to the water system in addition to the Mountain Cove demands. The City will reimburse the
developer for the costs of upsizing.
JUSTIFICATION: The oversized waterlines were necessary to carry water flows from the oversized water storage reservoir at
Mountain Cove.
SCHEDULING: The pipelines have been installed. This project will remain open until the developer has requested reimbursement.
RELATIONSHIP TO GENERAL PLAN: None
OPERATING BUDGET IMPACT: None
�3
0
tV
FY 2004-2008 Capital Improvement Program
Water Division
Upsize Discharges Wells #2 
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
2 U size Discharges Wells#2 
72101N
Water Fund 960,000 960,000
DESCRIPTION: Wells number 2 and 3 were identified by the 2000 Water Master Plan Update as needing to have their discharge
pipes increased in capacity to carry the flows of which the wells are capable of producing.
JUSTIFICATION: This project is necessary to add flow capacity to maximize usage of pipes.
SCHEDULING: This project will be scheduled when other construction at the Spreading grounds well field has been completed.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
6e�
FY 2004-2008 Capital Improvement Program
Water Division
Well No. 10 Treatment Plant Design and Construction
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
3 Well No. 10 Treatment Plant Design and
Construction
newproject)
Water Fund 2,000,000 2,000,000
DESCRIPTION: Well No. 10 contains both nitrate and perchlorate, which will have to be treated out of the water. If the Water
Division decides to build its own treatment plant, a capital expenditure estimated in the amount of$2.0 million will be necessary.
JUSTIFICATION: Well No. 10 requires treatment to meet future State Health Department requirements that are expected to be
released in January 2004.
SCHEDULING: By the end of this year, the Water Division will have determined whether it will build the treatment plant or move
forward with an option to lease a treatment plant.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
►p.
FY 2004-2008 Capital Improvement Program
Water Division .
Well No. 10 Treatment Plant Structure
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
4 Well No. 10 Treatment Plant Structure
(new project )
Water Fund 200,000 200,000
DESCRIPTION: Well No. 10 contains both nitrate and perchlorate, which will have to be treated out of the water. Regardless of
whether the Water Division decides to lease a treatment plant or build its own treatment plant, a structure will be necessary.to house
the treatment processes.
JUSTIFICATION: Treatment processes require protection from the elements.
SCHEDULING: Negotiations are underway with a provider of treatment processes for lease and with a consultant who would like to
do a pilot study at the Well 10 site.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
Ln
FY 2004-2008 Capital Improvement Program
Water Division
Azusa Spreading Grounds Wells
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
5 Azusa S readin Grounds Wells
72101P
Water Fund 4,199,243 4,199,243
DESCRIPTION: The Water Division, in cooperation with the Los Angeles County Public Works Department drilled two wells (11
and 12) at the Spreading Grounds well site. The County agreed to reimburse the City for 50 percent of the cost of the wells upon
completion of the project. Because of difficulties in gaining access across property owned by the City of Pasadena for placement of
the final discharge pipeline, the project has not yet been closed.
JUSTIFICATION: This project is required for mitigation of sluicing operations conducted by the County.
SCHEDULING: Approximately 90% of the budget has been spent and this project will be closed once the final pipeline is installed.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: This project was done on cooperation with the Los Angeles County Public Works Department
OPERATING BUDGET IMPACT: None
C
C"
FY 2004-2008 Capital Improvement Program
Water Division
5,500 LF 12" Pipeline- 6th St.- from Virginia to Cerritos
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
6 5,500 LF 12" Pipeline- 6th St.- from Virginia to
Cerritos
72102D
Water Fund 578,000 578,000
DESCRIPTION: This project is for the installation of a 12-inch waterline in Sixth Street from Virginia to Cerritos.
JUSTIFICATION: This project is recommended by 2000 Water Master Plan update for improved system water flow.
SCHEDULING: The design has been completed and this project is expected to go out to bid this year.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
G
rA.
FY 2004-2008 Capital Improvement Program
Water Division
Rehabilitation of Sierra Madre Reservoir
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
7 Rehabilitation of Sierra Madre Reservoir
72102C
Water Fund 300,000 300,000
DESCRIPTION: The Sierra Madre reservoir is approximately 100 years old and requires an inspection and rehabilitation to repair
leaks.
JUSTIFICATION: The Sierra Madre Reservoir is a vital component of the City's water system.
SCHEDULING: This project is scheduled to begin in the winter of 2003 and will be completed this fiscal year.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
G
.A.
00
c:
FY 2004 - 2008 Capital Improvement Program
Water Division
Install radio controls for SCADA
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priori Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
8 Install radio controls for SCADA
(72101G
Water Fund 300,000 300,000
DESCRIPTION: The Water Division is currently upgrading its SCADA system to transmit its signal by radio rather than the land
telephone lines used to date. The radio signals will provide improved reliability of control of the water system.
JUSTIFICATION: This project is necessary to provide a more reliable operation of the SCADA system.
SCHEDULING: The upgrade for this project is currently underway and will be completed this fiscal year.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
c'J
CD
FY 2004 - 2008 Capital Improvement Program
Water Division
WTP landscape-design and installation
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
9 WTP Landscape,Design.and Installation
new project
Water Fund 75,000 75,000
DESCRIPTION: The driveway to the main entrance of the Water Treatment Plant has a sideslope to the east that needs to be retained
and landscaped.
JUSTIFICATION: This project is required for the protection of the driveway and the overall appearance of the Treatment plant.
SCHEDULING: This project is expected to be designed and completed this fiscal year. .
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
C.A
CD
FY 2004 - 2008 Capital Improvement Program
Water Division
Water Main Replacement
Total Appropriated FY 2005
Estimated Through Adopted Recomud To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
10 Water Main Replacement
(new project)
Water Fund 2,000,000 2,000,000
DESCRIPTION: This project provides for an aggressive main replacement program to replace old and leaky mains. The Water
Division is also keeping ahead of the Public Works paving and resurfacing program to help ensure that newly pavement will not have
to be cut soon after it is placed.
JUSTIFICATION: Main replacement is necessary to maintain the viability and reliability of the water system.
SCHEDULING: This is an on-going annual program will targets replacement of water mains. The number of miles actually being
repaired fluctuates from year to year, but the annual average is approximately five miles. For fiscal year 2004, the plans and
specifications have been prepared and the project will go to bid by October.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: It is anticipated that this project will receive $2.0 million annually to address this capital issue.
OPERATING BUDGET IMPACT: None
O
U1
FY 2004 - 2008 Capital Improvement Program
Water Division
Emergency backup power generator
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Descri tion Cost FY 2002 FY 2003 FY 2004 Estimated Cost
11 Emergency backup ower generator
(72103D
Water Fund 100,000 100,000
DESCRIPTION: The Water Division requires an additional mobile power generator to provide service as needed at pump stations or
wells during power outage events.
JUSTIFICATION: This project is necessary to provide backup emergency service.
SCHEDULING: The generator has been ordered and will be delivered this year.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
c
CST
zv
ti
FY 2004 - 2008 Capital Improvement Program
Water Division
12 inch waterline crossing of Big Dalton Wash
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
12 12 inch waterline crossing of Big Dalton Wash
72103B )
Water Fund 200,000 200,000
DESCRIPTION: This project includes the installation of a 12-inch waterline across Big Dalton Wash Channel to provide additional
flow to the southeast section of the water system for fire flow events.
JUSTIFICATION: The fire flows in portions of the southeast sections are currently below Fire Department requirements.
SCHEDULING: Project bid out and contracts are signed. It is anticipated that this project will be completed in fiscal year 2004.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
V
CJI
C.J
FY 2004 - 2008 Capital Improvement Program
Water Division
Upgrade to the Canyon Filtration Plant
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
13 Upgrade to the Canyon Filtration Plant
72103E
Water Fund 1,000,000 1,000,000
Future Water Bonds 20,000,000 20,000,000
TOTAL 21,000,000
DESCRIPTION: The Canyon Water Filtration Plant needs upgrading to meet fixture California Department of Health Services
requirements for water treatment. The initial budget allocation of$1.0 million will include a filter process pilot study and preliminary
design of the treatment plant improvements. Construction of the treatment plant will be done in following years and will be funded
through the issuance of water funded bonds.
JUSTIFICATION: State Health Department requirements have restricted the use of the present water treatment plant.
SCHEDULING: A consultant has been selected to conduct the pilot study and contract negotiations are underway.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
Cx
cit
>ie
FY 2004 - 2008 Capital Improvement Program
Water Division
6300 LF 30" pipeline-Dalton- from Sierra Madre to Fifth St.
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
14 6300 LF 30" pipeline- Dalton- from Siena Madre to
Fifth St
7210213
Water Fund 1,005,000 1,005,000
DESCRIPTION: The 2000 Water Master Plan update recommended installation of a 30-inch waterline in Dalton from Sierra Madre
to Fifth St..
JUSTIFICATION: This project is identified in the 2000 Water Master Plan update for improved system water flow.
SCHEDULING: This project has been designed, but construction has not yet scheduled.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
E�
f�
U1
FY 2004 - 2008 Capital Improvement Program
Water Division
Distribution Main upgrades
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
15 Distribution Main upgrades
(72102G
Water Fund 3,625,710 3,625,710
DESCRIPTION: This project includes the installation of a waterline in the east side of the water system.
JUSTIFICATION: Main upgrades are necessary to maintain the viability and reliability of the water system.
SCHEDULING: The installation is substantially complete,but legal difficulties with the contractor have necessitated keeping the
contract open.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
C
C
G7
FY 2004 - 2008 Capital Improvement Program
Water Division
12" Pipe- Citrus and Foothill to Barranca and Alosta
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
16 12" Pipe- Citrus and Foothill to Barranca and Alosta
(72101B
Water Fund 557,000 557,000
DESCRIPTION: The 2000 Water Master Plan Update has recommended a waterline from Citrus and Foothill, east on Foothill to Barranca then
south on Barranca to Alosta. The purpose of the waterline is to enhance water flow on the system's east side
JUSTIFICATION: This project is recommended in the 2000 Water Master Plan Update.
SCHEDULING: Construction has begun on this project and is scheduled for completion by November 2004.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
CJI
FY 2004 - 2008 Capital Improvement Program
Water Division
Ph I Heck Pump Station
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Descri tion Cost FY 2002 FY 2003 FY 2004 Estimated Cost
17 Ph I Heck Pump Station
72101M
Water Fund 375,000 375,000
DESCRIPTION: The Mountain Cove development required a pump station to supply water to the Mountain Cove Reservoir. The
Water Division required the developer to oversize the pump station to provide additional flow to the water system. The costs of
oversizing the pump station will be reimbursed to the developer from the Water Fund.
JUSTIFICATION: This project is necessary to provide additional water flows to the system.
SCHEDULING: This project has been completed but will remain open until final reimbursement has been made to the developer.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
(it
00
FY 2004 - 2008 Capital Improvement Program
Water Division
Build 1 MG steel reservoir- Mt. Cove development
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
18 Build 1 MG steel reservoir-Mt. Cove development
(72101E)
Water Fund 1,000,000 1,000,000
DESCRIPTION: The Mountain Cove development required additional storage capacity for fire flow and domestic demand. The storage
required for the development will be funded by the developer and the additional storage will be funded through the Water Fund.
JUSTIFICATION: This project is required in order to support the development and is also recommended in the 2000 Water Master
Plan Update
SCHEDULING: This project has been completed but will remain open until final reimbursement has been made to the developer.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
CJ
UY
CCS
FY 2004 - 2008 Capital Improvement Program
Water Division
Northern Transmission Main
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Descri tion Cost FY 2002 FY 2003 FY 2004 Estimated Cost
19 Northern Transmission Main
7210317)
Private Contribution 500,000 500,000
DESCRIPTION: The Water Division has acquired Miller Brewing as a water customer. A service line to the brewery from the
Spreading Grounds wellfield was necessary. The Water Division has done the management of the construction project and Miller
Brewing has agreed to reimburse the Water Division for all costs associated with the installation of the service line.
JUSTIFICATION: This project is necessary in order to serve a large customer.
SCHEDULING: This project has begun and will be completed in fiscal year 2004
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
G�
FY 2004 - 2008 Capital Improvement Program
Water Division
Purchase Pasadena property
Total Appropriated FY 2005
Estimated Through Adopted Recomud To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
20 Purchase Pasadena property
72103A
Water Fund 55,000 55,000
DESCRIPTION: In order to complete the Spreading Groundswell project, it maybe necessary to purchase right-of-way property
from the City of Pasadena for land they own in Azusa.
JUSTIFICATION: The purchase of this property may be necessary to complete the Spreading Grounds Well project
SCHEDULING: The two cities have begun negotiations on the right-of-way property.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
O
07
FY 2004 - 2008 Capital Improvement Program
Water Division
Ranger station design/construction
Total Appropriated FY 2005
Estimated Through Adopted Recomud To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
21 Ranger station design/construction
72103C
Water Fund 700,000 700,000
DESCRIPTION: Azusa Light and Water is Participating with the US Forest Service in the design and construction of a new ranger
station on the grounds of the Canyon Water Treatment Plant. The project includes an interpretive garden at the ranger station site.
JUSTIFICATION: Will improve the entrance to the City Azusa from San Gabriel Canyon Rd.
SCHEDULING: This project has begun.
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: This project is being done in cooperation with the US Forest Service and Los Angeles County
OPERATING BUDGET IMPACT: None
iV
FY 2004 - 2008 Capital Improvement Program
Water Division
Rockvale Booster upgrade
Total Appropriated FY 2005
Estimated Through Adopted Recomnd To 2008
Priority Description Cost FY 2002 FY 2003 FY 2004 Estimated Cost
22 Rockvale Booster upgrade
72101C
Water Fund 150,000 150,000
DESCRIPTION: The existing Rockvale Boosters require an upgrade to increase their ability to pump water to the upper pressure zones that
will serve the Monrovia Nursery development. The Booster station will also require an appearance upgrade to fit in with the Azusa Pacific General
Plan improvements.
JUSTIFICATION: This project is recommended in the 2000 Water Master Plan update.
SCHEDULING: This project will begin after the completion of the Azusa Pacific University Master Plan
RELATIONSHIP TO GENERAL PLAN: None
SPECIAL CONSIDERATIONS: None
OPERATING BUDGET IMPACT: None
G
On
W
Tour of San Juan Power Plant
August 4 — 6 , 2003
Overview
. Staff participated in a two-day tour sponsored
by the Public Service Company of New Mexico
(PNM) and SCPPA.
. Other Visitors: City of Banning, Imperial
Irrigation District and SCPPA Staff
. Toured San Juan #3 Operations
. Toured the adjacent underground coal mine
operations
. Had an in-depth meeting with plant senior
management.
1
064
General Observations
• The plant operation is an intricately complex endeavor, with
thousands of moving parts
• The plant staff is very focused and knowledgeable of the day-
to-day operations
• The plant is run on a very"tight ship"regime without a lot of
redundancies and/or contingencies built into the system and/or
process
• The plant in general and Unit #3 in particular face some major
decisions in terms of needed capital improvements in the next
three to five years
• The underground mine operation is also an intricately complex
endeavor without a lot of redundancies and/or contingencies
built into the system and/or process.
Unit #3 may require major refurbishments in the next three to
five years
Communication Process
. Staff impressed upon.PNM and other visitors
the importance of having the Unit #3 well run
and at the highest productivity possible.
. Further, Staff impressed upon all present the
need of broader strategic thinking regarding
the long term viability of the project
. All present agreed an ongoing dialogue
between PNM and the owners will be very
beneficial and highly desirable
d65
Next Steps
. Staff will work through SCPPA to formalized SCPPA's strategic
thinking of major decisions facing Unit #3
. Staff will coordinate through SCPPA to commence discussions
regarding the funding mechanisms for Unit #3 CIPS.
SCPPA will formulate positions and communicate them to PNM
A follow-up visit is currently scheduled for next April during Unit
#3 scheduled maintenance to formalized the long term planning
of Unit #3 refurbishment projects
Concluding, the plant is a viable resource for the long term.
However, major capital improvement projects are likely to
be needed in the next three to five years. Staff intends to
actively participate in the planning and decision process.
Related Materials
n PNM slide presentation
. On-site photos of the plant.
3
,4
AZUSA
LIGHT &WATER
O
Azusa Utility Board Meeting
September 22, 2003
c, AZUSA
LIGHT h WATER
Power Resources Division Monthly Report
• Status of Projects
• Power Consumption Comparison
• Wholesale. Market Trend
• Power Resource Budget Update
00
Stat us of irroiielets-
• Resource Panning
➢ Finalized the power resource portfolio for the fourth quarter of this
year and the first quarter of next year.
➢ San Juan Firming arrangement is finalized and staff is currently
seeking for approval from Utility Board.
• Renewable Energy
➢ Wind power from High Winds Energy Center started to flow as of
September 1, 2003.
➢ Dedication Ceremony will be held on September 18, 2003.
• City 's Transmission Revenue Requirement (TRR) settlement agreement was
filed and certified by the Federal Energy Regulatory Commission (FERC)
judge in late August, currently awaiting FERC Commission 's approval,.
• Electric & Vater Financings successfully, completed on August 19.
• Visited San, Juan Power Plant and the adjacent underground coal mining
operations in early, August (separate information report attached).
• Edison 's Wholesale .Distribution Access Tariff(WDAT) charges —
settlement proceeding was terminated without reaching a settlement,.
Hearing process will commence shortly. The Cit es filed for a Motion of
Declaratory Order on September 12, 2,003 at FERC..
• FERC trial staff filed a motion for dismissal of allegations against the City.
on August 28, 2003. Motion is awaiting FERC Commission 's approval.
c
rn
........
PERCENT
MONTH FY02-03 FY03-04 CHANGE
JUL 23,576 26,154 10.94%
AUG 22,502 26,714 _ 8.7
12/0
- SEP 23,047 - ^�^
-�
OCT 20,290NOV
- OCT 18,577 -- ------ -
DEC 18,784
.........
JAN 19,535
FEB 17,294
.........
MAR 19,280
APR18,425
...........
MAY 20,011
JUN 20,310
TOTAL 241,631 52,868 14.83%
ENERGY CONSUMPTION IN MWH
Establishing a new all-time high of monthly retail sales, surpassing previous high established in
2000 of 26,239 MWh —�
CITY OF AZUSA PEAK DEMAND COMPARISON
PERCENT
MONTH FY02-03 FY-0-64 CHANGE
JUL 52.0 55.7 7.08%
-' _
AUG- 48.4 r 57.8 * 19.43%
SEP - 54.1
_ OCT 44.0
NOV -- 38.9
DEC 34.4 -
JAN 36.5
FEB 33.5
.....
MAR 40.2
APR 39.0
.......... ...................... ........... ............................... ......
MAY 50.3
JUN 47.0
PEAK DEMAND IN MW
*Very close to the all-time high for peak of 58.1 MW established on September 1, 1998_
-�I
O
t
�^'Fh hte(N i ""Li ht4�3fat
AVERAGE AVERAGE
........
MONTH ON PEAK PRICE OFF PEAK PRICE
JUL 02 $38.73 $15.70
AUG 02 $30.96 _ $18.08
SEP02 $31.52__ _ $20.89 -_
OCT 02 $32.97 $22.04
NOV 02 $32.59 $24.53
DEC 02 $39.25 $29.17
JAN 03 $39.13.. $27.94
........
FEB 03 _ $54.02 $42.41
MAR 03 $53.33 $40.50 -
APR 03 $42.09 $30.40
---
MAY 03 $44.49 $21 .44
JUN 03 $50.59 $27.39
JUL 03 $59.69 $39.84
...
AUG 03 $51 .46 $36.46
ALL PRICES IN $/MWH
C)
Power Resource Cost Accounting
_. _ r _ �� FY '02-'03 I.,._... ........... ....-_. , __..... ............... 1 7 1
(5) .._....... (6) _ (7) .�.... (8)
LONGTERM - SHORT TERM TRANSMISSION ANCILLARY F..... SCHEDULING TOTALWHOLESALE j NET
MONTH CONTRACTS PURCHASES COSTS ( SERVICE COSTS DISPATCHING COSTS COSTS ( REVENUES ' COSTS
JUL 03(•) � 823,681.74 1,687,401.801 244,757 31 ( 20,000.00 1 26,249.38 I 2,802,090.23 1 (1,470,758.50)1 1,331 331 73
Otto SEP 03f 991 354 11 ' 1 437 585 56 _244,757.3120,000.00 0.00
. - 24,50 2,718,206.36
0 00 i -_._ (1,318 367 00)_1_399 830 00 1,
NOV 03 ( !E 0 00 0 00
DECO i .... .. .. .. ...._._. ..._,....._. ....-_. ._i.... --_- 0.00 ..._. � -_�_.. 0 00 ,�.
JAN 04
'— FEB 04 __.. ....... 0.
00 0.00 •,.
04
..4..... ...._..-_ ...._.__.
MAR �._..... ............ ............ . ..........
_ � ! 000 _ 000
__ _ .............
__
APR 04 i.......... �00 0 00
MAY 04 __ ..1.......... �.. 0.00 ....... I 0.00
JUN 04 0.00 ! 0.00
TOTAL j $1,815,035.85 $3,124,987.36 $489,514.62 _ $40,000.00 1 $50,758.76 I $5,520,296.59 1 ($2,789,125.50)) $2,731,171.09
_...._.. __.. T .........
(•) �Forthe month of Jul ly 2003 San Juan Unrt#3 Replacement Oostdue to unit outage amounts to$266,702.30.
•
L. ............... ........ ._.... .. .. ._... ! .._....
r
i,
... ..._... ._. ....... ..... 1 ... ..... {.
(1) `INCLUDES SCPPA LONG TERM CONTRACTS
(2) INCLUDES ALL SHORT TERM PURCHASES FOR HEDGING AND LOAD BALANCING PURPOSES - --
(3) INCLUDES ALL SHORT TERM AND LONG TRANSMISSION CONTRACT-COSTS
(4) _ COSTS CHARGED BYCALIFORNIAINDEPENDENT SYSTEM OPERATOR FOR SYSTEM RELIABILITY FUNCTIONS
_...._ __.... ..........
(5) _ INCLUDES COSTS FOR SCHEDULING AND DISPATCHING OF ELECTRICITY
(6) _ SUM 0F,(1)THROUGH ....... .........`.... ......... ...... .........
.. --_. .. ........-- --_.......... ..........__ .......... ....... ,
—
u(7) —iWHOLESALE REVENUES DERIVED FROM SALES OF EXCESS POWER BENEFITS _
... ..... __... __- ..... ..._. ... i _-
�. (8) DIFFERENCE OF(6)AND(7). _ �� _
...... .._. ........ r ...... .... . ..... ..... A
N
I
Kirkwall Substation Project
Monthly Status Report
September 22, 2003
W
Engineering & Construction Update
■ AZUSA (Contract with Black & Veatch )
■ Completed 90% Engineering Plans / Drawing
■ Procurement of Major Substation Equipment
is on Schedule (Power Transformer and
Metal Clad Switchgear)
■ Front Landscaping , Monument and Wall
Designs are Being Finalized
■ Monthly Edison Meeting since July 2003
Contract Negotiation Update
■ Letter Agreement to enable Edison to commence engineering,
design & construction of Edison's portion of the Kirkwall
Substation was executed on May 28, 2003
■ The City and Edison are currently in negotiations for a definitive
agreement for the Kirkwall Substation
■ Edison provided draft agreements for City's review on July 25,
2003
■ Staff provided initial comments to the draft agreements on
August 25, 2003
■ Staff is scheduling negotiation meetings with Edison in the
coming weeks
C
CA
Funds and Expenditures Update
SUMMARY
KIRKWALL SUBSTATION FUND PROCEEDS
SERIES B SERIES C
CATEGORY TAX-EXEMPT TAXABLE
BOND PROCEEDS $5,470,000 $6,525,000
DEBTSERVICE RESERVEFUND@10% -$547,000 -$652,500
NET BOND PROCEEDS $4,923,000 $5,872,500
TOTAL ISSUANCE COSTS -$197,304 -$194,185
BONDS PROCEEDS AFTER ISSUANCE COSTS $4,725,696 $5,678,315
TOTAL DRAWDOWNS -$500,000 -$3,000,000
AVAILABLE BOND PROCEEDS $4,225,696 $2,678,315
KIRKWALL SUBSTATION TOTAL COST
'FIXED COST(A) CONTRACTAMOUNT BILLING %OF CONTRACT AMOUNT TO CATE
BLACK&VEATCH $9,200 $9,200 100.00%
SCE $40,000 $40,000 100.00%
1 AVIGANT $4,400 $4,400 100.00%
LANDACQUISTION $720,000 $720,000 100.00%
TOTAL(A) $773,600
SON-GOING COST(B)
BLACK&VEATCH $3,086,000 $180,268 5.84%
SCE $5,626,000 $3,000,000 53.32%
PETE&SONS INC $461,450 $0 0.00%
TOTAL(B) $3,180,268
TOTAL COST(A)+(B) $3,953,868
1 � f
AZ k$A
L CMI i 4ATEE
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIl�
,
DATE: SEPTEMBER 22, 2003 l�
SUBJECT: FY 2002-2003 4" QUARTER WORK PLAN UPDATES
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council receive the attached work plan
updates from Azusa Light &Water for review and comment.
BACKGROUND
Staff from different divisions of Azusa Light &Water provided work plan updates for the
Utility Board's consideration and input.
The updates cover the 4r" quarter of fiscal year 2002-03, from April 1, 2003 to June 30,
2003. The Board may provide input or comments regarding specific projects.
FISCAL IMPACT
There is no fiscal impact as a result of this report.
Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities
Steven Yang, Administrative Technician
Attachment:
mmi
WIPW 4th Qtr FY
02-03.doc
077
Azusa Light and Water
FY2002-03 Work Plan Updates Report
Fourth Quarter
Table of Contents
Communication............................................................................................................................................................1
"We go the extra mile" campaign (for L&W Customer Service) ...................................................................... 1
AzusaToday............................................................................................................................................................ 1
AzusaTomorrow..................................................................................................................................................... 1
HandAcross Azusa................................................................................................................................................. 1
MeasureL Communications Plan......................................................................................................................... 2
CustomerService.........................................................................................................................................................2
AutomatedMeter Reading (AMR)........................................................................................................................ 2
ImproveCustomer Communications.................................................................................................................... 2
ImproveCustomer Satisfaction............................................................................................................................. 2
PublicBenefit Programs......................................................................................................................................... 3
RouteReorganization........................................................................................................................................:.... 3
WOW - Premier Customers................................................................................................................................... 3
ElectricOperations......................................................................................................................................................3
Distribution Sys. Relay Upgrade Monitoring & Automation Phase-1 (CIP).................................................... 3
Engineer,Procure, Construct (EPC) New Substation +Distribution System...................................................4
InfraredInspection.................................................................................................................................................4
Owl/Hilltop Distribution Circuit Line Extensions (CIP) ....................................................................................4
Pole Maintenance/Inspection Testing................................................................................................................... 5
Substation Site Acquisition "New Substation" (CIP) ......................................................................................... 5
TreeMaintenance/Circuit Trimming ...................................................:............................................................... 5
L&W Administration..................................................................................................................................................5
Telecommunications............................................................................................................................................... 5
Wireless Telecom Service Evaluation ................................................................................................................... 6
WorkOrder System Review.................................................................................................................................. 6
MIS....................................................................................................................... ..
.......................... .............................7
Customer Information System Working Group.................................................................................................. 7
PhaseII— CIS online system.................................................................................................................................. 7
Update Azusa/Colton CIS system to final PowerHouse version......................................................................... 7
Upgrade Avaya G3r (OS, VOID, VAL, BCMS)................................................................................................... 7
PowerResource............................................................................................................................................................8
ContractNegotiations............................................................................................................................................. 8
Renewable Resource Procurement........................................................:............................................................... 8
Resolution of Regulatory Issues............................................................................................................................. 9
RetailRates Revision...........................................................................................................................:.................. 9
San Juan Unit#3 Performance Mitigation......................................................................................................... 10
i 078
WasteManagement ...................................................................................................................................................10
DOC Beverage Container Recycling Program................................................................................................... 10
Dumpthat Junk Month........................................................................................................................................ 10
Green Waste Barrel Distribution Program........................................................................................................ 11
MRFProgram....................................................................................................................................................... 11
Used Oil Recycling Block Grant Program.......................................................................................................... 11
WaterOperations.......................................................................................................................................................12
12-inch crossing Dalton Wash ............................................................................................................................. 12
12-inch pipeline in 6th St: Virginia to Cerritos Ave......................................................................................... 12
16-inch pipeline in Baseline from Rockvale to Citrus....................................................................................... 12
IMG Mountain Cove Reservoir .......................................................................................................................... 12
20-inch and 16-inch pipeline for Mountain Cove............................................................................................... 13
20-inch pipe installation- Lakeview Terrace to 10th St and Rockvale Boosters............................................. 13
30-inch pipeline in Dalton from Sierra Madre to 5th........................................................................................ 13
DistributionMain Upgrades................................................................................................................................ 13
Installradio controls for SCADA........................................................................................................................ 13
Ph1 Heck Booster Pump Station ........................................................................................................................ 14
Pipeline from Citrus & Foothill to Barranca & Alosta..................................................................................... 14
Purchasereplacement vehicles ............................................................................................................................ 14
Rehabilitationof South Reservoir....................................................................................................................... 14
Repairs to Sierra Madre Reservoir..................................................................................................................... 15
Rockvalebooster upgrade.................................................................................................................................... 15
Spreadingground wells........................................................................................................................................ 15
Treatment plant sed basin and sludge lagoon design and construction .......................................................... 15
Well2 & 3 discharge upgrade.............................................................................................................................. 15
;;
079
Division: lCommunicatio
Work Name: "We go the extra mile" campaign (for L&W Customer Service)
Description: Public Relations. Marketing campaign to highlight customer service improvements and
additional services to the customers of Azusa Light&Water.
Work Type: Program
Team Leader: Martin Quiroz
Team Member:
Quarter Ending Update:
This project is on-going. The Meter Reader of the Year,Concerts in the Park and a Light&Water section in
the Azusa Tomorrow Newsletter were successfully executed last quarter.
Work Name: Azusa Today
Description: Write,produce and edit a 40-minute TV show on current events and projects
throughout the city of Azusa. The completed show is placed on a program schedule
and aired on Azusa government channel 55. Assistant City Manager,Robert Person is
the moderator and host of the show. The show is taped at the Charter facilities in Pasadena
each month.
Work Type: Program
Team Leader: Martin Quiroz
Team Member:
Quarter Ending Update:
Azusa Tomorrow has been cut from the mix of marketing tools used to build the Azusa brand due to lack of
resources.
Work Name: Azusa Tomorrow
Description: Write,photograph and lay-out the monthly Azusa newsletter which gets circulated via
the Light and Water utility bills.
Work Type: Program
Team Leader: Martin Quiroz
Team Member:
Quarter Ending Update:
Azusa Tomorrow continues to be written and published on a monthly basis. We begun the addition of the L&W
section to the newsletter and have increase circulation to over 20 thousand. We have begun to discuss the
expansion of this newsletter to include a twice a year update on services,programs and positions for the City by
collaborating with the Department of Recreation and Family Services Activity Guide.
Work Name: Hand Across Azusa
Description: Provide support for Human Relations Commission Annual Martin Luther King Event.
Work Type: Program
Team Leader: Martin Quiroz
Team Member:
Quarter Ending Update:
This project begins in earnest in December 2003.
i 080
Work Name: Measure L Communications Plan
Description: Develop a comprehensive communication plan for information relating to Measure L.
Work Type: Project
Team Leader: Martin Quiroz
Team Member:
Quarter Ending Update:
The communications plan for the Bond Measure"L" has morphed into a communications plan for the building
of a new library for the City. It has included: a new highly graphic application,updated video production,
communications strategy for getting out the needs for a new library to elected officials,State Bond Library
Construction Panel and the media. On-going until the November Library Construction selection is made.
Division: lCustomer Servicel
Work Name: Automated Meter Reading (AMR)
Description: To improve customer service and increase efficiency,radio read meters will be installed
on non-access or bad dog accounts. Use of AMR meters will ensure that all reads will
be obtained for billing in less time than is presently possible. Appointments with
customers and repeat trips to obtain reads will be eliminated.
Work Type: Program
Team Leader: Derek McFann
Team Member: Sallie Acero
Quarter Ending Update:
748 AMR meters installed on hard-to-read meters and new housing tract homes to date. While accounts
continually are added to the list of hard-to-read meters for change outs,94 are currently on the list.
Work Name: Improve Customer Communications
Description: Update residential service booklet,including modernizing graphics. Continuously
update information on Light&Water's web site.
Work Type: Project
Team Leader: Karen Vanca
Team Member:
Quarter Ending Update:
Complete.
Work Name: Improve Customer Satisfaction
Description: Determine service level baseline. Improve customer satisfaction by benchmarking,
setting performance targets,training,monitoring and giving employee feedback in key
customer contact areas. Identify opportunities for office and field employees to
provide additional customer services. This is a multiple-year project and ongoing
measurement of results.
Work Type: Project
Team Leader: Karen Vanca
2 081
Team Member: Derek McFann
Sallie Acero
Quarter Ending Update:
Second of three field employee customer service trainings complete. Call Center quantity goals are set on a
three month trial basis for best fit before adoption Meter Reading Team is benchmarking with other SCPPA
members and comparing to AL&W performance. Goals will be set within 60 days.
Work Name: Public Benefit Programs
Description: Develop,implement,and track Public Benefit programs for residential,small,medium,
and large business customers.
Work Type: Program
Team Leader: Karen Vanca
Team Member: Paul Reid
Quarter Ending Update:
Plan achieved. Public Benefit programs have been developed,implemented,and tracked for all segments of
Azusa Light&Water customers.
Work Name: Route Reorganization
Description: Reorganization of the meter reading routes will provide better customer service and will
allow completion of the reading schedule in less time than is presently required.
Work Type: Project
Team Leader: Derek McFann
Team Member: Sallie Acero
Quarter Ending Update:
MIS Department advised this project cannot be completed until the CIS system issue is resolved. It is not cost-
effective to do additional programming to a system that may be retired.
Work Name: WOW - Premier Customers
Description: Working with our employee team,identify "premier'customers and how we can
provide them knock your socks off service.
Work Type: Program
Team Leader: Karen Vanca
Team Member: Derek McFann
Sallie Acero
Quarter Ending Update:
World Class Service Team identified ways to improve service,particularly for Azusa Light&Water's premier
customers. Team members volunteered to complete the improvements by the end of 2003.
Division: lectric Operation
Work Name: Distribution Sys. Relay Upgrade Monitoring & Automation
Phase-1(CIP)
3 082
Description: Preventive maintenance and replacement of existing protective devices at Azusa
substation needed to improve reliability and continuity of service.
Work Type: Project
Team Leader: Federico Langit
Team Member:
Quarter Ending Update:
Complete construction of pilot project and prepare for testing.
Work Name: Engineer,Procure, Construct (EPC) New Substation +
Distribution System
Description: The addition of the new substation south of the 210 freeway adds flexibility of
operation and system reliability. Project is being carried over from fiscal year 2002-
03. A budget of$4.8 million is to be carried for the construction which will start on
FY 2002-2003,culminating on FY 2003-2004.
Work Type: Project
Team Leader: Federico Langit
Team Member:
Quarter Ending Update:
Award EPC contract to Black&Veatch Construction Inc.
Work Name: Infrared Inspection
Description: Annual infrared inspection of 12 kV Overhead lines with infrared equipment and
camera to locate hot spots on the electric system,so that preventative maintenance
can be preformed. This proactive maintenance helps prevent customer outages.
Work Type: Project
Team Leader: David Ramirez
Team Member: Dan Kjar
Quarter Ending Update:
Pro-Line completed the infrared inspection(survey)of Azusa overhead 12-kv overhead power line circuits and
Azusa's portion of the Azusa Substation the week of April 7-10,2003. During the inspection three problems
were identified and a work order was issued for our field crews to make repairs,the repairs were completed by the
end of May 2003.
Work Name: Owl/Hilltop Distribution Circuit Line Extensions (CIP)
Description: Project Phase II. Hilltop Circuit will be routed along San Gabriel Ave from Sierra
Madre north to Canyon Vista to provide a loop feed with the Owl circuit.The
installation of conduit and underground structures are part of San Gabriel Avenue
medium project.
Work Type: Project
Team Leader: David Ramirez
Team Member: Federico Langit
Quarter Ending Update:
The contractor has completed installing the electrical conduit and vaults on San Gabriel Ave and is now working
4 083
on installing the electrical conduit underground structures on Sierra Madre Avenue.
Work Name: Pole Maintenance/Inspection Testing
Description: Inspection,testing and treatment of power poles(wood)for structural integrity per
maintenance agreement and the reinforcing of poles that are candidates for the Osmo-
C-Truss(steel)or Fiber Wrap reinforcement. This proactive program helps prevent
outages during storm conditions.
Work Type: Project
Team Leader: Dan Kjar
Team Member: David Ramirez
Quarter Ending Update:
The contractor inspected and treated a total of 784 poles between March 6&April 12,2003,of the 784 poles
inspected 98 poles were rejected(failed). A total of 65 of the 98 rejected poles were restored at the ground line
with steel-strutting.,the remaining 33 poles are listed on a matrix for replacement.
Work Name: Substation Site Acquisition "New Substation" (CIP)
Description: Site needed for construction of new substation south of the 210 freeway.(160 West
Gladstone St.) Project Is being carried over from fiscal year 2001-2002.
Work Type: Project
Team Leader: Federico Langit
Team Member:
Quarter Ending Update:
Complete demolition and minor site improvement in preparation for detailed design/engineering of substation.
Work Name: Tree Maintenance/Circuit Trimming
Description: Maintenance annual circuit trimming(power-line clearance)pro-active maintenance
program to reduce or eliminate customer outages due to trees coming in contact with
high voltage power lines.
Work Type: Program
Team Leader: David Ramirez
Team Member: Dan Kjar
Quarter Ending Update:
Five additional palm trees were removed from under the power lines from mid February to May 2003.
Division: &W Administratio
Work Name: Telecommunications
Description: Research potential uses of optical fiber installed by Charter Communications,and
potential telecommunications services that could be provided by the Utility. Services
that will be considered were discussed in the Utility's Strategic Mission exercise which
took place between Sept 2000 to Apr 2001.
Work Type: Project
5 084
Team Leader: Cary Kalscheuer
Team Member: Joe Hsu
Federico Langit
Quarter Ending Update:
Presentations were made to staff at Library on April 28,2003,and to the Utility Board. Consultant
recommended that the City not move forward with wired fiber network as it is not financially viable. Utility
Board directed staff to evaluate wireless business opportunity using Wi Fi technology. The telecom
feasibility study as described in this work plan updated is completed.
Work Name: Wireless Telecom Service Evaluation
Description: Evaluate use wireless or Wi Fi technology as a means of providing low cost
internet and other services to Azusa residents and businesses.
Work Type: Project
Team Leader: Cary Kalscheuer
Team Member: Joe Hsu
Federico Langit
Quarter Ending Update:
Project began April 28,2003. Report will be provided by RW Beck prior to end of September 2003.
Work Name: Work Order System Review
Description: Work orders are issued to have work done by field personnel. Work orders
communicate what is to be done, what equipment and materials are needed to do the
job,and authorize field personnel to commence work. Work orders also are used to
track costs for billing and accounting purposes. This is a review of the work
management process,which is largely a manual process,to see how it can be made
more efficient, and possibly automated,for billing,accounting and management purposes.
Work Type: Project
Team Leader: Cary Kalscheuer
Team Member: Steven Yang
Joe Hsu
Kevin Morningstar
Ann Graf
Feliza Cawte
Hien Vuong
Dan Kjar
Federico Langit
David Ramirez
Quarter Ending Update:
Features and functions for work order or work management system were developed and forwarded to Kevin
Morningstar for inclusion of CIS RFP. RFP was finalized and released. Rather than doing a demo of Bi Tech
work order module,screen shots of the Bi Tech system were circulated to Assistant Directors of Utility for
comment and input on whether they wanted to proceed with a demonstration. Bi Tech's module was considered
outdated and it was decided not to do a demo.
6 085
Division: ®S
Work Name: Customer Information System Working Group
Description: In December 2006,the Hewlett Packard 3000 line of equipment will no longer be
supported by Hewlett Packard. Since Azusa and Colton share a common
internal/custom CIS system that runs on this platform,a migration plan must be in
place before the end of calendar year 2003. As part of the process,Azusa and Colton
have agreed to create a joint working group with staff from both cities that are tasked
with looking into CIS alternatives. A joint RFI is due by May 2003.
Work Type: Project
Team Leader: Kevin Morningstar
Team Member:
Quarter Ending Update:
The joint Azusa/Colton CIS RFP/Q was released on May 30th. A joint group of 6 staff members from Azusa
and Colton attended the CIS Conference in Nashville,TN 5/31 - 6/3. At the Conference vendor demos were
scheduled and the RFP was released on an interactive CDROM. The RFP/Q was also available via both websites
(azusalw.com&coltononline.com). Vendor responses are due at the end of July. Lund has also completed their
migration report.
Work Name: Phase II— CIS online system
Description: The online customer access to customer data via azusalw.com and coltononline.com
has been in place for over a year. The second phase entails adding additional
information to that currently available as well as adding online credit card acceptance.
Staff is also investigating online service requests.
Work Type: Project
Team Leader: Kevin Morningstar
Team Member: Margaret De Lano
Quarter Ending Update:
The hold on this project is continuing pending the release of the new PowerHouse software. Anticipated
delivery of the PowerHouse product is September 2003.
Work Name: Update Azusa/Colton CIS system to final PowerHouse version
Description: Hewlett Packard has announced that it will no longer support the HP 3000 after
December 2006. Given that date the cities of Azusa and Colton need to be underway
with migration efforts no later than Fiscal Year 03/04. In preparation for migration
the Light&Water MIS staff will be performing the last system wide update of the CIS
software. Project will entail an entire system rebuild,data and code clean up to
facilitate migration effort.
Work Type: Project
Team Leader: Kevin Morningstar _
Team Member: Margaret De Lano
Quarter Ending Update:
Project is currently pending software release. Release of software is anticipated to be Sept. '04.
Work Name: Upgrade Avaya G3r(OS, VOID, VAL,BCMS)
Description: Upgrade the City's Avaya G3r telephone switch. Upgrades include a new operating
�8�
system(Multivantage),replacement of obsolete hardware,addition of LAN
connectivity,VOIP capability,Voice Announcement over LAN capability,and
replacement of Azusa Light&Water's CMS system with Avaya BCMS. Joint project
between citywide MIS staff.
Work Type: Project
Team Leader: Kevin Morningstar
Team Member: Mike Guadagnino
Lysell Wofford
Ann Graf
Quarter Ending Update:
Hardware and software were installed in April. All items are currently functional and MIS staff is working on
taking advantage of the new functionality. First priority is to update L&W Customer Service Auto Attendant.
Division: ower Resourc
Work Name: Contract Negotiations
Description: The following contracts will need to be negotiated by the end of second quarter: (1)
Scheduling Services Agreement with Salt River Project to provide the after-the-hour
power resource scheduling services;and(2)An interconnection service agreement with
Edison to specify the terms and conditions of the interconnection of the new
substation with Edison's system.
Work Type: Project
Team Leader: Bob Tang
Team Member: Tim Vuong
Richard Torres
Quarter Ending Update:
(1)The Scheduling Service Agreement with Salt River Project was successfully extended for two additional years
commencing July 1,2003 through June 30,2005 under the same terms and conditions and at a cost of
$2,100/month.
(2)An Engineering and Design Agreement was executed for the new substation as of late May,2003 which will
allow Edison to commence engineering,design,procurement of materials,and the construction activities while
the City and Edison continue negotiations of a long term interconnection agreement.
Work Name: Renewable Resource Procurement
Description: As the state of California continues to consider the state's long term renewable energy
strategy(perhaps establishing a renewable energy portfolio standard),.the department
will need to monitor and devise a strategy to face such potential challenges in the near
future. Initial efforts will be taken to identify long-term sustainable funding
mechanisms of potential renewable energy procurement(either due to legislative
mandate or voluntary).
Work Type: Program
Team Leader: Bob Tang
Team Member: Tim Vuong
Richard Torres
Quarter Ending Update:
8 087
The contract negotiations with PPM Energy,Inc. was successfully completed,culminating in the long term
contracting of 6 MW of windpower from High Winds Energy Center. The power delivery commenced on
September 1,2003 and will continue for the next 20 years. Additional negotiations with a geothermal power
plant operator have proven unsuccessful,and such negotiations have been discontinued as of early September
due to the lack of progress.
Work Name: Resolution of Regulatory Issues
Description: The following regulatory issues involving the City are currently been subject to
resolution by FERC: (1) City's Transmission Revenue Requirement(TRR);(2)The
CAISO transmission access charge methodology;(3)The California electricity market
redesign efforts. The Staff will actively participate in these proceedings to protect the
City's interests.
Work Type: Project
Team Leader: Bob Tang
Team Member: Tim Vuong
Richard Torres
Quarter Ending Update:
(1)A settlement of City's Transmission Revenue Requirement(TRR)has been successfully negotiated,the
settlement agreement was filed with the Federal Energy Regulatory Commission(FERC)administrative law judge
in later July,the FERC judge has recently certified the uncontested settlement to the FERC commissioners.
Upon FERC commissioners approval,the settlement will become final and resolves City's TRR for the time
being.
(2)California Independent System Operator(CAISO)transmission access charge methodology pre-hearing
activities are almost complete. Staff prepared and coordinated the filing of City's testimony and responses to
data requests through D.C. Counsel.The FERC hearing process will commence shortly and is expected to
conclude and with initial decision by FERC judge by the first quarter of 2004.Activities will continue on this
issue.
(3)CAISO has filed additional nine tariff amendments since late April, and among them the market redesign
tariff amendment which will completely revamp the California electricity market once implemented in 2005.
Staff continues to review and conduct the necessary studies to assess the impacts of the market redesign to our
Operations. The activities on this issue will continue for the foreseeable future.
Work Name: Retail Rates Revision
Description: As the department's cost structure continues to face upward cost pressures due to(1)
cost-of-living adjustment,(2)increased internal funding of capital projects,(3)
additional socialized city costs,(4)uncertain and volatile electricity wholesale market,
(5)uncertain cost implications of CAISO market as well as expiring transmission
contracts with SCE,the department will need to revisit and revise its retail rates to
reflect the current business environment. At the same time,the department will be to
be cognizant of the increased competitive pressure from the investor-owned utilities
(namely SCE in Azusa's case)once they complete the restructuring of their past debts
in the foreseeable future(by mid-2003 in SCE's case).
In light of the above, we need to devise a more flexible rate structure that can provide
the department with the rate flexibility to face the unforeseen circumstances. Along
these thoughts,the following rate structure may serve as a"strawman":
a. Incorporate a portion of the current one-cent per kWh charge permanently into
the rate base to reflect the increased cost structure of the department.
b. Create a quarterly updated power cost adjustment(PCA)mechanism to reflect the
volatile nature of department wholesale power procurement costs(perhaps with a
percent cap of how much the department can revise its PCA).
9 - 083
Work Type: Project
Team Leader: Bob Tang
Team Member: Tim Vuong
Richard Torres
Quarter Ending Update:
Electric retail rate adjustment was successfully completed and implemented as of July 1,2003.
Work Name: San Juan Unit#3 Performance Mitigation
Description: As demonstrated in the past year,the department's ability to provide reliable low-cost
electricity is intricately tied to the performance of San Juan Unit#3. Planned and
unplanned outages of the unit have and will continue to cause adverse impacts to our
objectives. The following tasks will be undertaken to mitigate to the maximum extent
possible the San Juan contingencies:
Al -Explore long term asset exchange arrangements with third parties
A2-Explore asset divestiture arrangements
A3 -Explore joint reserve sharing arrangements
Work Type: Project
Team Leader: Bob Tang
Team Member: Tim Vuong
Richard Torres
Quarter Ending Update:
Staff visited the San Juan power plant including the adjacent underground coal mining operations in early August.
Staff has commenced and is continuing to work through SCPPA to strategize the short term and long term
strategic issues associated with the San Juan Power Plant in general and Unit#3 in particular.Major decisions
regarding plant refurbishment will be forthcoming in the next 12 to 24 months. Staff intends to actively
participate with SCPPA in the decision making process.The activities on this issue will continue for the foreseeable future.
Division: Waste Mana emen
Work Name: DOC Beverage Container Recycling Program
Description: Purchase compartmentalized recycling containers and promote their use by schools.
Aluminum cans,plastic bottles,newspaper and mixed paper are the four commodities
targeted through this program. Proceeds from recovery of these commodities will go
to host school. Bins will be serviced by Athens Services.
Work Type: Program
Team Leader: Cary Kalscheuer
Team Member:
Quarter Ending Update:
5.56 tons were recovered by Athens from 3 schools. Athens expressed concern about storing 6 bins for schools
while City waited for School District to sign contracts. School District permitted,and City agreed to provide,
delivery of bins to 6 schools.
Work Name: Dump that Junk Month
Description: Sponsor and promote spring cleaning activities during the month of April,including
throwing away junk at curbside;cleaning alleys;towing away old cars;throwing away
10 089
household hazardous waste;and cleaning out city facility offices.
Work Type: Program
Team Leader: Rick Cole
Team Member: Jeff Reed
Dave Rudisel
Bill Nakasone
Tina Cravens
Karen Vanca
Quarter Ending Update:
Activities carried out as planned. 227 computer screens dropped off at HHW Round up, 12,750 pounds of E-
Waste, 1,400 gallons of motor oil, 130 gallons of antifreeze,7,600 gallons of paint,680 pounds of dry cell
batteries, 150 pounds of oil filters, 3,800 gallons of other items like pesticides,and 258 car batteries were
collected. 18 couches were picked up,22 mattresses,3 refrigerators, 15 washers and dryers,92 tires,and other
items totaling 250 tons. 17 cars were also towed away,and hundreds of plants were given away.
Work Name: Green Waste Barrel Distribution Program
Description: Purchase 32 gallon green barrels and distribute them to single family residents to
increase curbside disposal capacity for clean separation and collection of green waste.
Work Type: Project
Team Leader: Cary Kalscheuer
Team Member:
Quarter Ending Update:
We receive periodic requests for barrels and meter reader staff made deliveries. There are about 220 barrels left
in our inventory. Yard waste diversion and disposal cost savings continued to be in line with projections.
Work Name: AIRF Program
Description: Process all solid waste collected in Azusa through Athens Services Material Recovery
Facility or MRF to divert 13,000 tons annually.
Work Type: Program
Team Leader: Cary Kalscheuer
Team Member:
Quarter Ending Update:
State informed City that it does not want to go through process of modifying Azusa's disposal tonnage since
modifications would still result in City's diversion rate being above 50%. Hence,State staff proposed that Azusa
accept the higher diversion rate of about 57%. MRF diversion for quarter was a little below normal at 3,114.39
tons,with very small portion made up of incineration, 145.01 tons.
Work Name: Used Oil Recycling Block Grant Program
Description: Supply used oil recycling drain pans to State Certified Used Oil Collection Centers in
Azusa. Promote use of these centers by residents through advertising.
Work Type: Program
Team Leader: Cary Kalscheuer
Team Member:
Quarter Ending Update:
11 ED
3,615 gallons of used oil collected by 6 centers; 129 used oil drain pans distributed by centers;3 ads ran during
this quarter in Azusa Herald.
Division: ater O eration
Work Name: 12-inch crossing Dalton Wash
Description: 12-inch waterline crossing Big Dalton Wash.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Project has been bid and a contractor selected.However,due to contractor scheduling conflicts the start of
project has been delayed to 1st quarter of FY 2003-2004.
Work Name: 12-inch pipeline in 6th St: Virginia to Cerritos Ave.
Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update.
Work Type: Project
Team Leader; Chet Anderson
Team Member:
Quarter Ending Update:
Project put on hold pending review of the system hydraulic model.
Work Name: 16-inch pipeline in Baseline from Rockvale to Citrus
Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Project on hold to end of paving cut moratorium.
Work Name: 1MG Mountain Cove Reservoir
Description: Installation of a reservoir at the Mountain Cove development.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Project in operation.Reimbursement agreement with Azusa Associates pending.
12 091
Work Name: 20-inch and 16-inch pipeline for Mountain Cove
Description: Installation of pipeline required to service the Mountain Cove Project from the Heck
Reservoir Booster Pump Station to the new Reservoir at Mountain Cove.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Project in operation.Reimbursement agreement with Azusa Associates pending.
Work Name: 20-inch pipe installation- Lakeview Terrace to 10th St and
Rockvale Boosters
Description: ' Installation of pipeline recommended by the Year 2000 Water System Master Plan Update.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
No information this quarter.Alignment information still pending.
Work Name: 30-inch pipeline in Dalton from Sierra Madre to 5th
Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Project design and specifications completed.Project on hold pending review of system hydraulic model.
Work Name: Distribution Main Upgrades
Description: Replacement of water mains in the distribution system.Rollover from 2002.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Litigation continues.
Work Name: Install radio controls for SCADA
Description: Installation of radio controls for the water system SCADA control system.
Work Type: Project
Team Leader: Chet Anderson
13 092
am Member:
uarter Ending Update:
stallation of equipment ordered for this FY is complete. SCADA project will continue next FY.
ork Name: Ph 1 Heck Booster Pump Station
scription: Installation of a booster pump station to boost water to the reservoir at the Mountain
Cove development.
ork Type: Project
am Leader: Chet Anderson
I
m Member:
arter Ending Update:
oster station on operation.Reimbursement agreement with developer is pending.
ork Name: Pipeline from Citrus & Foothill to Barranca & Alosta
cription: Installation of 12-inch pipeline recommended by the Year 2000 Water System Master
Plan Update.
ork Type: Project
am Leader: Che[Anderson
am Member:
arter Ending Update:
oject bid and a contractor accepted.Project will begin and will be completed.the first and second quarters of
2003-2004.
ork Name: Purchase replacement vehicles
cription: Replace vehicles that have reached an advanced age and advanced state of wear.
ork Type: Project
am Leader: Chet Anderson
am Member:
arter Ending Update:
mpleted third quarter.
ork Name: Rehabilitation of South Reservoir
scription: South Reservoir will be analyzed by a structural engineer to determine if the reservoir is
worth renovating or if it should be torn down and replaced.
ork Type: Project
am Leader: Chet Anderson
m Member:
arter Ending Update:
nsultant who was selected in January indicated they would do the work.However,the consultant was again
esponsive.RFPs will be issued second quarter of FY 2003-2004.
14 093
Work Name: Repairs to Sierra Madre Reservoir
Description: Sierra Madre Reservoir is in need of repairs to the inside and outside of the reservoir.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Inspection on hold to Fall of 2003.
Work Name: Rockvale booster upgrade
Description: Installation of new pump and piping to enhance the performance of the Rockvale boosters.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Still on hold pending requirements of APU and Monrovia Nursery supply demands.
Work Name: Spreading ground wells
Description: Installation of two wells in partnership with the County to enhance the County's
ability to sluice the accumulated debris from Morris and San Gabriel Dams.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Project still delayed by lack of access to Pasadena property.Use of another agency's blanket easement over the
Pasadena property is being explored.
Work Name: Treatment plant sed basin and sludge lagoon design and construction
Description: Treatment plant sed basin and sludge lagoon design and construction to enhance the
performance of the water treatment plant.
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
This project has been revised to encompass a pilot treatment process study and design of the proposed water
treatment plant improvements. RFPs were sent to consultants for the pilot study.
Work Name: Well 2 & 3 discharge upgrade
Description: Installation of piping to enhance the flow out of wells 2&3.
15 094
Work Type: Project
Team Leader: Chet Anderson
Team Member:
Quarter Ending Update:
Northern Transmission Line is in operation.The upgrades will occur in FY 2003-2004.
16 095
i 1
An Interview with
Larry Anderson
Director, Utah Division of Water Resources
KEVIN R. HOPKINS
Larry Anderson, Director of the Utah West. While protecting the environment is populated states.And Utah residents place
Division of Water Resources,is leading vital, we cannot lose sight of the adverse a cultural priority on healthy green land-
his state's efforts to deal with the chal- effects that some environmental protection scapes becausee they provide play areas for
lenging water resource issues that are measures will have on states' ability to their children" Despite these legitimate
affecting all states in the West—often meet their citizens water needs. The cre- reasons for water usage,though, Utah msi-
vexing issues like drought, water consei- ation of wild and scenic rivers and the dents still water their landscapes more
vation, population growth, and water designation of wilderness areas, for than they need to—as much as 25% to
quality. Government West Editor Kevin example,important as these steps are,may .G ore.So we need to develop a greater
Hopkins spoke with Mr. Anderson on make it difficult to develop the necessary public-warenessof water waste in order to
July 3 to determine how the State of Utah water resources.Meeting new water quality c?eate an ethic of conservation in our state.
was handling these challenges, and to standards, especially the very strict arsenic \7
discuss what other states could learn from level requirements that were recently GW: Is tl�ae happening?Are the people of
Utah's experience. enacted,will impose huge costs on govern- Utah beginning to conserve water
meets throughout the West,particularly in resources?
"Our goal is to�educe per capita v�;ater con-
;° sumptionn =munkies.
5°/° befor 2050."
GW: What are the key water-related chal- the s allere to DIR. A ERSON: Actually, they are doing
lenges that the western states are likely to reme et tllyis well, as it turns out.Some time ago,
face in the decade ahead? pan o the we established a goal of reducing per
limited water supplies,so we have to strike capita water consumption in our state by
DIR.ANDERSON:With continued growth in a reasonable balance when imposing new at least 25%before 2050. And we're well
the West,competition for the limited water rules like these. on our way. Over the last two years, per
supply will certainly bea major problem. capita water usage in Utah has declined by
The degree of difficulty will vary among GW: blow do Utah's water-related chat- about 10%. .
the states,depending upon how aggressive lenges differ from those of other states in
a state has been in preparing to meet the the West? GW: How has Utah managed to reduce
needs of a growing population. 1 believe water usage levels by so much?
the key for all states, though, ties in -DIR. ANDERSON: Utah has to work even
making better, more efficient use of exist- harder at water conservation than many DIR.ANDERSON:One of the most effective
ing water supplies—for instance, relying other states because we have very high per steps we have undertaken is an extensive
more on surface water during wet cycles capita water usage—higher than in any education and media campaign to encour-
and turning more to ground water during other state in the U.S. except for Nevada. age people to conserve water and to
dry cycles. There are some reasons for this. Utah's demonstrate how they can do that. In
average family size is considerably greater addition, the Governors Office has been
Environmental issues also have impor- than for the rest of the nation.Residential very supportive of our water conservation
tant implications for water supply in the lot sizes are larger than in more densely campaign and has created the'Governor's
60UERNMEHT JULYZAUGUST 2003 12
096
Water Conservation Team' to Utah Drought Conditions time farming. We at the state level
support the program. I'm pleased to (May 2003) have tried to facilitate the conversion
say that the people of Utah have a ca of agricultural water to municipal and
reacted very positively to these mes- industrial uses by developing a good
sages. Of course, Utah is in the fifth IM working relationship with our farming
year of a drought,so our people havecommunities, and by always having
been able to see first-hand that what open lines of communications.
we have been saying is true, and that
has given them an even more per- A similar situation has characterized
sonal reason to be responsive. our water conservation efforts. We
haven't enacted any now statewide
conservation regulations, although a
GW:You have talked about what the
State- of Utah has been doing. Are 61
few cities and<ommunities have done
Utah's local governments alsoso.Instead,we,have focused on educa-
helping to resolve these critical water t z =vT
tion and outreach, asking people to
issues? understand the dimensions of the
problems that we face as a state and
DIR. ANDERSON: Very much so. The x then encouraging them to do the right
Jordan Valley Water Conservancy things. I happen to believe that the
District, for instance, has been a people of Utah not only want to do
major player in water conservation, the right thing, but that they will do
They have a very important role in so if they have the information they
this respect since they oversee water This map illustrates drought conditions in Utah as of need.And I can tell you:if our people
usage for the rapidly growing western May 2003,the most recent data available continue to respond in the way that
and southern suburbs of the Salt Lake they have over the past two years,then
valley.One program they have put in place hoped.One initiative that has been under- we will meet our water supply goals—well
is to display several different.kinds of low- way is the conversion of agricultural water ahead of schedule.
water-usage landscapes at their offices so usage to municipal and industrial pur-
that the Valleys residents can learn first- poses. in a number of western states, this D. Larry Anderson is the Director of the
hand haw they can have both beautiful transition has been fraught with much Divisfon of Water Resources for the state of
lawns and low water consumption.In part contention.In Utah, however, the convex- Utah:He may be reached at(801)538-7230
bemuse of the District's efforts, xefiscap- sion process has actually gone quite or,-by mail, at LanyAndeson@utah.gov.For
ing—creating a beautiful, low-water-use smoothly. For some Utah farmers in fast- more information an the programs of the Utah
ambiance for yards—has become more growing urban areas,working the land has Division of Water Resources, see:
popular in the Valley, and this has helped become difficult and, in some cases, it is http://Wwwwater.utah.gov.
to reduce water use bemuse such yards more lucrative to sell rather than to con-
require only a fraction of the water that a
traditional Kentucky bluegrass yard does.
N,
The Washington County Water
Conservancy District in southern Utah,
which encompasses the fast-growing St.
George area, has taken similar steps. And
both districts.as well as our office have
hired water conservation specialists,which
helps to make sure that water conservation
issues receive the attention in local deci-
sion-making that they deserve.
GW. What lessons can other states in the
War learn from Utah's experience?
DIR. ANDERSON: There are a couple of
areas where we have had particular success I I • Vol
that.1 think have helped us to achieve our
water supply goals faster than we had
13 JULY/AUGUST 2003 uCuEBNMENT
09T,
■
t
t
t
WAS '
ftdl'as ���xmt .7`. ex� � �� r _•�' � a t
e 4 5 • ! r '.r"' w.: J yfd. 1 P �{ � �Y �`� �.2{A:�
as+1r gQ&
�� � �� � . �v''�Y � z 7 ��F � � '1 {v"•1i�( � rr._� }a{{..
San Juan
eneratino
n
Ape wnaicommilmen m
Station
Production Costs
San Juan 100%
$Mwh Production Cost
1998 - 2002 Actual and 2003 - 2008 Forecast
35.00
30.00
A�
23 26.59 '
25,65
25.00
20.00 2ustCapital
41
Other
O&M
15.00
Fuel
10.00
OW,
U-1fi, 4;M,
5.00
114,eN,
0.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Capital 0-47 0.50 0.60 1.36 1.80 2.45 0.81 1.69 1.76 1.83 2.00
Other 0.31 0.27 0.28 0.31 0.23 0.28 0.27 0.28 0.29 0.30 0.31
MO&M 588 5.32 5.64 6.98 6.05 6.82 6.36 6.54 6.62 5.90 7.22
w Fuel 18-68 18.98 19.01 20.92 21.01 19.80 19.07 18.79 16.98 17.20 17.06
i uesaay, August Ub, ZUU6 Page 2
Sanhan
Unit 3 Production Performance Berating
A personat commilmen Station
to New M V,
H - M
Major Turbine
GADS Average 83.5% Minor Minor GADS Top Quartile 87.5%
100 - 94 96 4 94 94 95
93 93
3 92
92 0 5, 89
91
90 7 –
87 87 95 86
3
E 84 85 14 82
82 0
-------- �101
80 -- k — f I h'
4
76 77 77
70 r.0 TV
Ol
73
72 a
4"1.
A
F Fear
Aver .2
k".
a.
-- k
2
60
57 E
Z —
IX, 9
50
Ell
40
48
41,
IN,
P
82
7
73
.7
3--
30
20 q,
5
10
"A
0
1� 14 rc, 14 V
Id 11,
0 41 11 *, hlel qb chcb ele'l lbt3 o A b
^414e , 'c ,10 ee 'P
Tuesday, August 05, 2003 oEquivalent Availability —Capacity Factor Page 3
San Juan
Pilot enerating
Aanp1w "men
' Unit 3 Forced Outages Station
GADS Average 13.82 per year
25
20
15
11
10
6
5
0
1998 1999 2000 2001 2002 2003
—Tube Leak` —0 hher T1Otaf -
Tuesday, August 05, 2003
Page 4
_ San Juan
enerating ��titl
N� 'whrmr°' Unit 3 Tube Leaks Station
Unit 3
1998 1999 2000 2001 2002 2003 Total
Economizer 1 1 1 3 1 7
Waterwall 1 1 1 3
Primary Superheater 1 3 1 1 3 9
Secondary Superheater 3 2 1 6
Finishing Superheater 0'
Reheater 01
Convection Pass 0
Total 3 4 1 4 7 6 25
Tuesday, August 05, 2003
Page 5
San Juan
enerating
perwnalcdmmitmem Unit 3 EFOR
% Station
t New M r'
50.00%
40.00%
30.00%
20.00%
10.00% q gg
0 rirm
' t
0.00% Jan Feb Mar Apr May Jim Jul Aug Sep Oct Nov Dec
p Actual 8.50% 6.70% 33.40% 8.50% 0.00% 15.40% 16.87%
®AauaICimMative 6.50% 9.30% 1150% 11.8% 8.20% 9.40% 14.12%
r Forecasted 5.00% 5.00% 5.00% 5.00% 5.00%
o Forecasted Cumulative 12.98% 12.09% 11.38% 10.80% 8.32%
-Threshold 7.50% 7,50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50%
Stretch 6.50% 6.50% 6.50% 6.50% 6,50% 6.50°b 6.50% 6.50% 6.50% 6.50% 6.501 6.50%
�0 limml 5.50% 5.50% 5.50% 5.50% 1 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%
Tuesday, August 05, 2003
Page 6
Date Offline Online Comments
January SanJaan
01/09/2003 11:30:00 Unit down for repair of expansion joints. 9 <}S j
eneratin
FPMJ9
01/13/2003 5:12:00 C Unit down for repairs on expansion JOINTS Station %�l`�
01/28/2003 4:45:00 PM Unit down for tube leak repairs.
01/30/2003 10:07:00 C Unit down for economizer tube leak repairs.
Date Offline Online Comments
February
02/19/2003 9:40:00 C 1:16:00 PM Unit tripped on low drum level due to 3B BFPT tripping.
02/21/2003 11:04:00 Unit down for water wall tube leak repairs.
02/23/2003 10:15:00 Unit down for water wall tube leak repairs.
Date Offline Online Comments
March
03/03/2003 4:32:00 PM Unit off line due to tube leaks in the primary super heater area.
03/08/2003 12:08:00 C Unit down for secondary super heater tube leaks.
03/13/2003 6:56:00 C 11:30:00 C Boiler drum level controls and problems with turbine supervisory controls
03/14/2003 1:08:00 PM 2:17:00 PM Unit tripped on low vacuum trip. Switch malfunction
03/16/2003 1:10:00 C Unit tripped on low vacuum.
03/17/2003 12:54:00 Unit down due to loss of vacuum.
03/18/2003 11:45:00 Vacuum problems with condenser
03/22/2003 1:00:00 C Unit down for bellows repairs in condenser.
Date Offline Online Comments
April
04/17/2003 9:00:00 PM Unit off line due to tube leaks in primary super heater.
04/22/2003 8:55:00 C Primary super heater tube leak repairs.
Date Of lne Online Comments
June
06/06/2003 11:41:00 C Unit down for primary super heater tube leak repairs.
06/10/2003 7:09:00 PM Unit on line @ 12 MW.Holding for crossover temperature.
Date Offline Online Comments
July
Tuesday, August 05, 2003
Page 7
San Juan
Short-term Operational R
enaWn �.�,1.
Aparsoaa(commitment $fatl0n
t v kluito
Issues
• Expansion Joints
• Loss of Vacuum
• Summertime Derating
• Hotwell Pump Motor
Tuesday, August 05, 2003
Page 8
San Juan
P enerating ,,NNI!f
Apecommitment Expansion Joints
to F' Station
to ew hfexi
• Prior to the outage , a complete walk
down of all the expansion joints will be
done to define the scope .
• A representative EFFOX will help
develop repair recommendations .
• A thermal scan will be performed for
further scope refinement.
Tuesday, August 05, 2003
Page 9
M San Juan
P enerating
Ape rsonalwmmitment Loss of Vacuum Station ;,,,�
to v r
• Replaced three bellows and several feet
of piping during unit down .
• Will inspect entire condenser, including
all of the bellows during the outage .
Tuesday, August 05, 2003
Page 10
San Juan
P enerating ,M5q.
A personatE M� �ment Summertime Derating Station ;;1,
• Hotter than normal summer.
• Cooling Tower performance continues
to degrade .
• Short term installed dry-section bypass
valves to enable repairs .
• Long term need to replace dry-section
coils .
Tuesday, August 05, 2003
Page 11
i
San Juan
enerating X01 ,f1
A rsonatcommiknent Station %• ti
�ta aU Hotwell Pump Motors
• Purchasing a spare motor and
rewinding to match unit needs
• Located a spare motor in Oklahoma
Tuesday, August 05, 2003
Page 12
U�
San Juan
k enerating
Apa onatcommitmem LoIng -term Projects Station
klevi o
• Primary Superheater
Economizer
• Secondary Superheater
• Platen Superheater
• Waterwalls
Tuesday, August 05, 2003
Page 13
4
M
pesonnlcommitment Superheater
Primar
w Mrri
• $ 10 Million
• Requires a major to replace
• Laning is not an option due to increased
backpressure on the boiler
Tuesday, August 05, 2003
Page 14
San Juan
enerating
Apersonnlcommitment Station cc-
wMaio
Economizer
$ 10 Million
• Requires a major to replace
• Projected for the next major outage
• Evaluating laning as an option until the
major
Tuesday, August 05, 2003
Page 15
San Juan
P i enerating �`tit1
A°`rw°'`°mm"m°"' Secondary Superheater Station ;11,�
Pw m ;
$5 Million
• Requires a major to replace
• Evaluating for the next major outage
• Laning is not an option due to increased
backpressure on the boiler
Tuesday, August 05, 2003
Page 16
San Juan
R Generating ��tis�
����"wm°"`me"` Platen Superheater Station
D .w WWW
• $3 Million
• Can be done during a minor
• Evaluating for the next minor outage
• Laning is not an option due to increased
backpressure on the boiler
• Cost less to replace in entirety versus
replacing known deficient areas
Tuesday, August 05, 2003
Page 17
San Juan
k enerating
Anonaicommitmcnt Station
11 ° ° Waterwalls
• $ 1 . 5 Million
• Can be overlayed during a minor outage
— Overlaying sections with stainless steel 'or
inconel
— Mapping boiler walls and planning for
overlaying during 2006 outage, if need be
Tuesday, August 05, 2003
Page 18
San Juan
Rvj Unit 3 Outage Costs enStation
A asonatcommitmtnt ��l\`
t New ldexicn
$20,000,000
$18,000,000
$1630005000
$14,000,000
$12,000,000
$10,0001000
$8,000,000
$6,000,000
$4,000,000
$2,000;000
$0
1998 2000 2001 2004 2006 2008
Tuesday, August 05, 2003 IN O&M O Capital
Page 19
San Juan .
IN
Update on Processenerating Station ijj,6
I_mprovements __
• Weekly Planning Meetings
• PM Basis
• Pasta
• Plantview
Tuesday, August 05, 2003
Page 20
HI
a °°'�o,nm,im� Weekly Planning Meetings
• Planners are being trained to develop proper
job planning practices, including parts,
tooling , clearances , other craft involvement,
etc.
• The only work that will interrupt a schedule is:
— emergency work (potential loss of megawatts,
safety, environmental)
— sponsored work (work which someone has a need
to have done quickly)
Tuesday, August 05, 2003
Page 21
San Juan
a enerating
Ayawnettommitment Station 1ja
av Me '
PM Basis
• Over 65% of plant components have
been analyzed in the PM basis so far.
• There have been many add-ons that
were not initially identified in Passport.
• Some of the work developed in the PM
basis has been entered in Passport
and is appearing on schedules .
Tuesday, August 05, 2003
Page 22
P San Juan
enerating SIM
personafcommitment Pasta Statien %11�
• PaSTA will track and provide reports on
emergency and sponsored work that include
events , percentages and sponsors to prevent
abuse
— PaSTA is running in a test version
— I . S. department will perform tests to assure that
Pasta will not corrupt any other files
— No corruption problems are expected .
— PaSTA should be live this week.
Tuesday, August 05, 2003
Page 23
PINON
San Juan
enerating �tisl
Apeamicommitmant Station ill�
PU ,eYren
Plantview
• The predictive maintenance program
continues to progress .
• Our PdM coach will be here 8-5-03 to
continue individualized coaching with
system owners .
Tuesday, August 05, 2003
Page 24
San Juan
enerating �,Mff
Apersonal commitmcm Human Resources Station ;,1,�
to w Mexica
By the year 201- 2 , 84% of the current
journeymen at SJGS will probably retire
leaving 44 of the original 272 .
Tuesday, August 05, 2003
Page 25
San Juan
Pmm
enerating . 5
A personal commitment Station /7,
LOC (All).;. Group (A➢) ;.
Job.Tittle
Count of 30 Yrs I@ WELDER,CODE CERT
70 OVP,POWER PRODUCTION
OTRAINER,TECHNICAL SR
EITECH,PROCUREMENTSR
60 �: OTECH,PROCUREMENT
OTECH,ENGINEERING SR
i
0 SUPV,WHSE SJ
50 & OSUPV,PLANT ENGINEERG
[I SUPV,OUTAGE PLNG
O SUPV,ENVIRO SVCS
40
0 SUPV,CRAFT III
0 SUPV,CRAFT II
' EISUPV,CHEMICAL PROCES
30 O SUPT,TECHNICAL SVCS
E]SPEC,TOOL ROOM
20 OSPEC,HUMAN RESOURCES
,
0 PLANT CHEMICAL SPECIALIST
M PLANNER,QUALITY CNTRL SP
10 i. 0 PARTSMAN SR
i I ®OPER,RELEIF
ROPER,JOURNEYMAN SR
0 p OPER,HEAVY EQUIPMENT
N M g .n ro n w m o N co) 7 to co o m o N M a m m o N m OOPER,AUXILIARYSR
O O O 0 0 0 0 0 - N N N N N N N th c7 t7 M
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N D MGR,WF TRANS DEV LC
Tuesday, August 05, 2003 ®MGR,TECH PROJII
30.Yrs;;�
❑MGR,SJGSTECH NICAL Page 26
P San Juan
enerating � s
Apersonalcommitmem Station 7/11,�
taNnPrra Human Resources
• Number of people reaching 30 years with
company or 65 years of age will retire.
(whichever comes first)
• Expect 30% of new hires to be Travelers
(qualified journeymen from other power
plants who will stay an average of 7
years), and hired at the time of a vacancy.
• Take advantage of the feeder groups at
San Juan College
• Must aggressively recruit, select, test and
hire top notch personnel
Tuesday, August 05, 2003
Page 27
San Juan
ME A enerating ��M1
as n°I�mm,�m�i Human Resources Station 1,40
t evM.xic
• The number of additional apprentices
require additional budgeted dollars to
help assure some of the knowledge
leaving will be passed on .
• Additional training and HR support will
also be required for recruitment, testing ,
hiring , and training .
• Additional training could work in
conjunction with OEP Program and
simulator training .
Tuesday, August 05, 2003
Page 28
San Jean
enerating ,�M
pc sonaf commitment Communications Statim V1,10-5
• Immediate forced outage notification through
system reliability to counterparts
• SJGS operations will follow up by phone as
soon as reasonably possible - to the SCAPPA
identified representative and by email by start
of business day
• SJGS operations will notify the SCAPPA rep
of planned outages as soon as plans are
finalized
Tuesday, August 05, 2003
Page 29
San Juan
enerating
A po"°'`°mm;mt"' Strategic Issues � Siatien
ew Mrxi°
• Fuel
• Water
• Environmental
Tuesday, August 05, 2003
Page 30