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Home My WebLink AboutAgenda Packet - August 26, 2002 - UBAGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA LIGHT 8_ WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON DICK STANFORD VICE CHAIRPERSON CRISTINA C. MADRID BOARD MEMBER MONDAY, AUGUST 26, 2002 6:30 PM DAVE HARDISON BOARD MEMBER IOSEP I R. ROCHA BOARD MEMBER 6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag . • Roll Call 1. PUBLIC PARTICIPATION (PersonlGroup shall be allowed to speak without Interruption up to five (5) minutes maximum time, subject to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker's questions or comments, shall be handled after De speakerminuer time.) completed his/her comments. Public Participation will be limited to sixty ( ) The Consent Calendar adoptlr{q the printed recommended action will be enacted with one vote. if Staff or councilmembers wish to address any Item on the Consent Calendar Individually, it will be considered under SPECIAL CALL ITEMS. !I. CONSENT CALENDAR A. Minutes. Recommendation: Approve minutes of regular meeting of July 22, 2002, as written. B. Engineering. Procurement and Construction of New Substation Recommendation: Authorize staff to solicit complete engineering, procurement and construction proposals for new substation at 1 160 West Gladstone Street. C. Northern Transmission Water Main, Project W-183. Recommendation: Award construction of Project W-83, Nothern Transmission Main, to Low Bidder, Engineered Plumbing, in amount of $1,917,355. D. AB 2308 (Chavez)—Support Letter to Senator Gloria Romero. Recommendation: Approve of Letter to Senator Gloria Romero urging support for AB 2308, to remove inert waste from disposal reporting system that is used to determine compliance with AB 939. E. Budget Amendment for River Related Expenses. Recommendation: Approve of budget amendment in amount of $200,000 to cover fiscal year 2002-03 expenses related to the River Project. Surplus Property, Assessor Parcel No. 8608-003-903 Recommendation: Declare vacant parcel, Assessor's Parcel No. 8603-003-903, as surplus by resolution and authorize staff to proceed with disposition of said property in accordance with California Government Code commencing with Section 54220 of Article 8, Division 2, Title 5. 111. SCHEDULED ITEMS A. Transfer of Water Rights to City of Azusa. Recommendation: Authorize staff to process an application to Main San Gabriel Basin Watermaster to transfer Azusa Agricultural Water Company's water rights (Azusa's share) from Azusa Valley Water Company back to the City of Azusa. IV. STAFF REPORTS/COMMUNICATIONS A. Flex Your Power Energy Conservation Award B. Electric Utility Operating Cost and Revenue Projection for FYs 2003-2008 C. Workplan Updates for Azusa Light 8. Water D. Monthly Power Resources Update E. Monthly Billing Reports for April, May and June 2002 F. City Facilities Energy Consumption Reports for May, June and July 2002 G. San Juan Generation Project Update (verbal—no attachments) H. Moody's Credit Rating (verbal—no attachments) 1. Status Report on Assistant Director's Recruitment (verbal—no attachments) V. DIRECTORS' COMMENTS A. Book Review—Boards That Make A Difference, by John Carver (Review of Chapters 1 and 2—notes attached) VI. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEC- ANTICIPATED LITIGATION Potential Litigation Government Code Section 54956.9(c) One Potential Case VII. ADIOURNMENT `7n compliance w th the Americans with Disabilities Act, ifyou need special assistance to participate In a city meeting, please contact the City Clerk at 626-8/2-5229. Notification three (3) working days prior to the meeting or time when special services are needed will assist staff In assuring that reasonable arrangements can be made to provide access to the meeting " r t� . AIL CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JULY 22, 2002 - 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. ROLL CALL PRESENT: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: City Attorney Carvalho, Director of Utilities Hsu, City Manager Cole, Assistant to the Director of Utilities Kalscheuer, Assistant Director of Resource Management Tang, Deputy City Clerk Toscano, City Clerk Mendoza. Public PdrticloatiOn None It was requested that the Council Calendar be held till after the Scheduled Items in order for the Mayor to participate. Scheduled Items Director of Utilities Hsu presented item regarding contract to retain a professional recruitment firm for a replacement for Mr. Bob Tang, Assistant Director of Resource Management. He stated that it Dias been very difficult to seek out qualified candidates for the position from just advertisements. He recommended that Mycoff &Associates as they have specialized in recruiting executive and professional positions for public power agencies; he cited many references. He also advised that he solicited three firms and Mycoff &Associates were the one with the highest fee. Councllmember Hardison asked that staff negotiate a guarantee which states that they will Call to Order Roll Call Also Present Pub Part None Request Sched Items Dir of Util Comments conduct an additional search for no additional fee should the candidate not work out, within two years of the employment date; the current agreements states "within one year". Chairperson Chagnon suggested that staff offer relocation fees, moving expenses to the applicants. Director of Utilities Hsu responded stating that it will be part of the packet. Moved by Councilmember Stanford, seconded by Councilmember Rocha and unanimously carried Agmt to approve the contract with Mycoff & Associates to recruit a replacement for Mr. Bob Tang, w/Mycoff Assistant Director of Resource Management, and authorize the City Manager to execute the &Associates contract. Mayor Madrid entered the meeting at 6:40 p.m. Mayor ent. Director of Utilities Hsu addressed Cost of Service Study item stating that Council should study Dir of Util and concur with staff recommendation and there will be a public hearing held on the issue on Comments August 5, 2002. He then responded to questions posed by Councilmembers regarding Water Testing, disconnect charge and a formula for allocated cost. Moved by Councilmember Stanford, seconded by Councilmember Hardison and unanimously Pub Hrg will carried to study and concur with staff recommendation and refer item to public hearing to be held Be held 8/5 on August 5, 2002. The CONSENT CALENDAR consisting of Items II -A through II -1, were approved by motion of Consent Cal. Councilmember Stanford, seconded by Councilmember Rocha, and unanimously carried. Appvd Councilmember Rocha abstained from the minutes due to his absence from that meeting. Mayor Madrid clarified in items 11-B & II -E, that third party is corrected to be second party. A. The minutes of the regular meeting of June 24, 2002, were approved as written. Min Appvd B. Master confirmation Agreement under the Western Systems Power Pool Agreement with UBS Western AG to enable the city to conduct business with UBS in the purchase and sale of electricity in Systems Pwr the future, was approved. Pool Agmt C. The proposed amendment to the Risk Management Policy and conveying interim authority to Risk Mgmt Power Resource Division personnel to conduct short term power transactions was approved. Policy Amend D. Termination Agreements between the City and BIO Energy (Azusa), LLP ("BIO ENERGY") to Termination terminate mutual contractual obligations and refund to BIO ENERGY the unused funds for the Agmts BIO engineering design in the amount of $32,627.62, was approved. Energy LLP E. The Master Power Purchase and Sale Agreement with Sempra Energy Trading Corp. (SETC) to Pwr Pur Agmt enable the city to conduct business with SETC in the purchase and sale of electricity in the Sempra future, was approved. F. Contract for demolition and minor site improvement at 1 160 West Gladstone Street (Azusa Pacific 2"d Substation Project), was awarded to Pacific Demolition, Inc. in the amount not to exceed Demolition $41,400. Agmt G. Bid specifications for construction of Project W-183, Northern Transmission Water Main were Specs No. approved, and the City Clerk was authorized to advertise for the project. Trans. Wtr H. SPECIAL CALL ITEM. 1. SPECIAL CALL ITEM. 07/22/01 PAGE TWO Spec Call Spec Call Spec Call Special Call Items Chairperson Chagnon addressed item regarding agreement with R.W. Beck for Chagnon Telecommunications Feasibility Study. She noted that the staff report states that the Azusa Questions Unified School District, since they may benefit from the project, was asked to consider sharing Comments costs of about $20,000 and that their response was that they are willing to participate in the study, but, declined to share costs due to budgetary constraints; she asked, if they still included in the study. Assistant to the Utilities Director Kalscheuer responded stating that they will still be included in the C. Kalscheuer study and consider their information and situation and do some analysis, but, there had to be Response changes to the project and the original cost proposal. He detailed his conversations with school district personnel and also the affects to the cost of the study, and stated that the integrity of the study will be maintained; further, he noted options of what could be done with the schools. He also noted their concerns about the project, such as: how the dark fiber would be extended outside the City's jurisdiction and that the City is in total control of the dark fiber network. He also stated that their staff is participating with planning stages of the project. Discussion was held on how well the AUSA was informed about the telecommunications issue. It Discussion was suggested that a letter be sent to Azusa Unified School District Board members to let them know what we are doing with regard to telecommunications and potential customers and to obtain their feedback via meetings. Moved by Councilmember Stanford, seconded by Councilmember Rocha and unanimously carried to award contract & approve negotiated agreement with RW Beck, Inc., in the amount not to exceed $180,983 for Professional Services to conduct a Telecommunications Feasibility Study; and amend Electric Operations Operating budget by an additional amount of $31,000 to supplement the existing budget for the project. Utilities Director Hsu addressed item regarding the selection of consultant to perform SB 610/SB221 Water Supply Assessment for the proposed Monrovia Nursery Development Project, stating that there is a need to do an in depth engineering analysis, so in addition to Hatch ii_ Parent to perform the consulting services he would like to be allowed to add another consulting liment the study and cost would be bore by the engineer firm in the recommendation to comp developer. Moved by Councilmember Stanford, seconded by Councilmember Rocha to approve the selection of Hatch & Parent to perform the SB 6 10 and SB 221 water supply assessment for the proposed Monrovia Nursery Development Projects and allow M. Hsu to add another consulting engineer firm to compliment the study if necessary. Staff Reports/Communications Agmt w/ RW Beck Inc. Feas Study Assistant Director of Resource Management Tang presented the Power Resources Division Monthly Report in written form without comment. Councilmembers thanked Mr. Tang for all the hard work he has done as he will be leaving to another job soon. He advised that he would be back at the next meeting for a brain storming session regarding the future of power resources in the City. He also expressed his appreciation to Councilmembers for the time he has worked for the City of Azusa. Assistant to the Utilities Director Kalscheuer presented Yard Waste Barrel Graphic exhibits A & B. Moved by Councilmember Stanford, seconded by Councilmember Rocha and unanimously carried to approve exhibit A as the graphic to be used on the barrels and flyers will be sent out with school children explaining that new barrels will be coming and also a copy of the graphic. 07/22/02 PAGE THREE Dir Utilities Comments Hatch & Parent & Consult Engr. Staff Rpts Pwr Res Mo Rpt Comments Cncl/B. Tang Yard Barrel Graphic A approved Utilities Director Hsu provided an update on the CEO/TOU Customer Luncheon and provided a Utilities Dir, graphic electric rate comparison. He advised that at the September meeting he will give a report Comments on a five year projection. Utilities Director Hsu displayed renderings and discussion was held regarding the Electric Yard Electric Yard Office Buildings construction. The Electric Yard will be at the Transportation site at 10th and Office Bldgs Vernon. He advised that the item will go before the Planning Commission for consideration at a construction later date and that neighborhood meetings will be held prior to that. Mayor Madrid advised of a power outage at the Edgewood Shopping Center, again and stated that there is a need to create a system to determine how to prevent power outages, how long they last, how to shorten the outage, and that there seems to be a breakdown in communication with something like this happens. She stated that there is a need to figure how to do a better job at addressing these kinds of emergencies. Councilmember Rocha expressed concern regarding the hanging baskets along Azusa Avenue and that some of them are hanging from only a thread and they may be a liability to the City if they fall and hurt someone. Directors' Comments Chairperson Chagnon requested that an item regarding the book "Boards That Make a Difference", chapters 1 and 2, be placed on the agenda for next meeting for discussion. It was consensus of Councilmembers to recess to Closed to discuss the following: Mayor Madrid Comments Rocha Comments Directors' Comments Chagnon Comments CONFERENCE WITH LEGAL COUNSEL (Gov CodeSec. 54956.9 (b)) Closed Bankruptcy Case of Enron Power Marketing, Inc. filed December 2, 2001, United States Session Bankruptcy Court. Recess: 7:18 p.m. Recess Reconvened: 7:35 p.m. Reconvened There was no reportable action taken in Closed Session. No Rpts It was consensus of Councilmembers to adjourn. Adjourn TIME OF ADJOURNMENT: 7:36 P.M. SECRETARY NEXT RESOLUTION NO. 02-C81. W 07/22/02 PAGE FOUR i CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: AUGUST 26, 2002 SUBJECT: ANTDHCONSTRION TO UCT ON O(EPC)TA COMPLETE PRO PROPOSALS FOR IENT HE NEW SUBSTATION PROJECT AT 1 160 WEST GIADSTONE STREET RECOMMENDATION It is recommended that the Utility Board/City Council authorized staff to prepare a Request - For -Proposal/ Qualifications (RFP/Q), and solicit a complete Engineering, Procurement and Construction (EPC) proposal for constructing the new Azusa Substation at 1160 West Gladstone Street. BACKGROUND Azusa Light & Water Department recently acquired the land at 1 160 West Gladstone Street where new substation will be constructed. Thereafter, staff retained services of a demolition contractor to perform preliminary site improvements which include demolishing existing buildings and minor rough surface grading. Moreover, staff began making arrangements with Edison for constructing the transmission lines that will serve new substation. Next step in project development is to design and engineer the substation. In the electric utility industry, it is common practice to employ an Engineer, Procure & Construct (EPC) approach in constructing electric substations. The benefits of EPC are: 1) It reduces the project timeline and administrative burden to process multiple agreements on separate engineering, procurement &construction contracts. 2) Quality control and cost savings will accrue if one seamless vendor or firm will be doing the entire substation project as opposed to different parties dealing with un- coordinated portions of project. "One -stop -shop" arrangement also eliminates potential design problems & delays that normally arises in this type of specialized Ir construction. ry1W 3) EPC approach follows similar competitive arrangements in material procurement and construction services and the possibility of savings will encourage EPC vendor to work efficiently without sacrificing design standards and quality construction. 4) The major electrical equipment such as high voltage circuit breakers, power transformers, control panels & relay equipments are not readily available but have to be ordered, manufactured then delivered. EPC approach advances the procurement process upon completion of detailed design and coordinates equipment installation during construction stage thereby eliminating delays and potential design conflicts with different vendors, suppliers and contractors. FISCAL IMPACT This project is budgeted during this fiscal year under Substation Capital Improvement Project and funds are available in account #33-80-000-730-7101/82000A. Prepared by. F LangitIr Pf, Electrical Engineer e CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: AUGUST 26, 2002 SUBJECT: AWARD OF CONTRACT FOR PROJECT W-183, NORTHERN TRANSMISSION MAIN RECOMMENDATION It is recommended that the Utility Board/City Council approve the award of contract to Engineered Plumbing for the construction of Project W-183, Northern Transmission Water Main. BACKGROUND The Water Division has designed a water main, called the Northern Transmission Main to carry water from the spreading ground wells southerly to the Azusa Light & Water service area south of the 210 Freeway. The pipeline will be approximately 3 miles long. Engineered Plumbing's Bid for the construction of the project is $1,917,355.00. The bids of the second and third low bidders were A.W. Davies, $1,935,423.00, and Simich Construction, $2,112,989.00. Bids were publicly opened August 21, 2002. J FISCAL IMPACT Fiscal impact of the project is negligible as the construction cost of the project will be reimbursed by other parties. Prepared by: Chet Anderson, Assistant Director - Water Operations r CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: AUGUST 26, 2002 SUBJECT: AB 2308 --REMOVAL OF INERT WASTE TONS FROM DISPOSAL REPORTING SYSTEM USED TO CALCULATE WASTE DIVERSION PURSUANT TO AB 939 RECOMMENDATION It is recommended that the Utility Board/City Council approve of the attached legislative letter of support of AB 2308, to remove inert waste from the disposal reporting system. BACKGROUND AB 939 was approved in 1989, and required cities to divert 25% of waste from landfills by 1995, and 50% by the year 2000. Moreover, the law requires "tons" disposed at landfills with "solid waste facilities permits" to be counted and used in calculating waste diversion. Unfortunately, after AB 939 was adopted, a handful of facilities became subject to this "soli td waste facilities permit" that were not "typical" landfills.. These include the Peck Road Gravel Pit, the Nu Way Live Oak Landfill, and the CALMAT Reliance Pit No. 2. These facilities are land reclamation pits, and also operate under land reclamation permits. These facilities do not accept municipal solid waste, only inert materials such as dirt, rock, asphalt, cement, bricks, and ceramics. The main purpose of filling these pits with inert materials is to reclaim or "recycle" the land so It can be used for beneficial purposes. Hence, many cities, over the years since AB 939 was adopted, have objected to these inert materials from being counted as regular trash just like that is set out by residents each week. In fact, some have argued that this type of waste is actually "diversion" and should be counted toward cities' recycling efforts. The State, however, has been counting inerts disposed at these facilities as trash for purposes of AB 939 ,,compliance. This became a concern in Azusa for the reporting year of 2001, the first full year of the MRF program, because the Inert tonnage showing up through the disposal reporting system Increased by over 5,700 tons compared to the tons disposed in 1999, which was a year used in determining how much waste needed to be diverted via MRF processing to reach the 50% waste diversion requirement. This underscored, again, the need to clarify how inert materials should be counted in terms of AB 939 compliance. Because of the noticeable increase of inert waste disposed from Azusa in 2001 (which became known to us in late May 2002 due to revisions in County disposal reports) staff took an aggressive position on this issue this year by working through a variety of intergovernmental channels, and helped formulate the attached amendment. This amendment would neutralize the effect the inert waste tonnage is having on our diversion rate. We estimate that if this amendment is approved, Azusa will likely have a diversion rate of over 50%; without the amendment, we will likely be below 50%. It is our understanding at the writing of this report that the Senate Environmental Quality Committee will adopt this amendment, however, it seems that more urging for its passage would be helpful at this time. FISCAL IMPACT There is no fiscal impact of approving this letter and forwarding it to the legislature. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities V i August 27, 2002 Honorable Gloria Romero California State Senate California State Capitol, Room 4062 Sacramento, CA 95814 SUBJECT: PROPOSED AMENDMENT TO AB 2308 --INERT WASTE POSITION: SUPPORT/ASSISTANCE REQUESTED Dear Senator Romero, The City of Azusa urges your support for the attached amendment of AB 2308, and would appreciate any assistance you might be able to provide to ensure passage of this bill. We understand this amendment is being adopted by the Senate Environmental Quality Committee, however, it seems like there has been some delay in the amendment coming forward out of committee raising concern as to whether the bill will make it through the legislative process by August 31, 2002. This bill is important to us because It addresses a longstanding problem with inert waste counting against our recycling efforts. We have spent literally hundreds of thousands of dollars on recycling programs to reach the 50% waste diversion requirement of AB 939, and put new programs in place in the year 2000. We fully expected to meet this goal for the year 2001, however, unanticipated increases in inert waste tonnage was reported to us in May 2002, for the 2001 reporting year, which undermine our ability to reach the 50% goal and comply with AB 939. As you know, AB 939 was approved in 1989, and required cities to divert 50% of their waste from landfills by the year 2000. However, the law and regulations require "tons" disposed at landfills with "solid waste facilities permits" to be counted and used to calculate waste diversion. Unfortunately, since the adoption of AB 939, a handful of facilities became subject to this "solid waste facilities permit" that were not your "typical" municipal solid waste landfill. In the San Gabriel Valley, these facilities include the Peck Road Gravel Pit, the Nu Way Live Oak Landfill, and the CALMAT Reliance Pit No. 2. These facilities are land reclamation pits, and also operate under land reclamation permits. These facilities do not accept municipal solid waste, only inert materials such as dirt, rock, asphalt, cement, bricks, and ceramics. The main purpose of filling these pits with inert materials is to reclaim or "recycle" the land so it can be used for beneficial purposes. Hence, -many cities, over the years since AB 939 was adopted, have objected to these inert materials or waste being counted as "disposal" or as regular trash just like that set out by residents each week. In fact, some have argued that this waste is actually "diversion" and should be counted toward cities' recycling efforts. The State, however, has been counting Inerts as trash ,for purposes of AB 939 compliance. This became a concern in Azusa for the reporting year of 2001, the first full year our comprehensive recycling program was in effect. The program that the City Council approved results in all waste that is collected by our franchised waste hauler, Athens Services, being sent to a Material Recovery Facility (MRF) for separation and recycling. Materials recovered through MRF processing include glass, plastic, metal, paper, organic materials, and some inerts like cement. Because the inert waste that is taken to the above referenced land reclamation sites is counted as trash through the disposal reporting system, and increased by over 5,700 tons compared to the tons disposed in 1999, it is causing us to fall below the 50% diversion requirement we have tried so hard to meet. The re -occurring nature of this problem needs to be addressed legislatively, and staff from the California Integrated Waste Management Board have agreed on this point. We cannot continue to be exposed to liability under AB 939 for tonnage disposed of in land reclamation pits, Just because of their permitting status. The proposed amendment would address our concerns by neutralizing the effect this tonnage is having on our diversion rate. We believe that this amendment is equitable and reasonable, has broad coalition support, and allows the State proper oversight on all adjustments. Azusa was very pleased to participate in the process to help formulate this amendment and again urges your support. If you have any questions on this amendment, please call Cary Kalscheuer, Assistant to the Director of Utilities, at (626) 812-5174. Sincerely, Cristina Cruz -Madrid Mayor cc: Members and Consultant, Senate Environmental Quality Committee Members and Consutlant, Senate Appropriations Committee Members, CIWMB Assembly Member Edward Chavez Rick Cole, City Manager City Managers of City of Glendora City of Covina City of West Covina City of Irwindale Attachment AB 2308 (CHAVEZ) as amended August 5, 2002 Page 2, line 2, after Section 1 strike all and insert the following: Section 41821.3 is added to the Public Resources Code, to read: 41821.3 (a) Cities, counties, and regional agencies may make a deduction from the amount of waste disposed that they are required to include in their annual reports pursuant to section 41821(b), commencing with the report for the year 2001, for inert waste removed from the solid waste stream and not disposed of in a solid waste landfill in accordance with the conditions set forth in this section. (b) For the purposes of this section: (1) "inert waste" means rock, concrete, brick; sand, soil, ceramics and cured asphalt only. "Inert waste' does not include aaywaste that meets the definition of "designated waste' as defined in Section 13173 of the Water Code or "hazardous waste' as defined in Section 40141. (2) "inert waste removed from the solid waste stream and not disposed of in a solid waste landfill' means the use or.placement of inert waste on property where surface mining operations, as defined in Section 2735, are being conducted, or have been conducted previously, as long as the use or placement is for purposes of reclamation, as defined in Section 2733, pursuant to either of the following: (A) A reclamation plan approved under Section 2774. (B) For surface mining operations conducted prior to January 1, 1976, an agreement with a city or county, or a permit issued by a city or county, that provides for a fill appropriately engineered for the planned future use of the reclaimed mine site. Page 1 of 4 (c) If a jurisdiction deducts inert waste as defined in subsection (b)(2) from its reported disposal tonnage for the year 2001: (1) the jurisdiction shall identify in its annual report that the deduction is being made Pursuant to this section and the exact amount of the deduction; (2) the board shall verify that the deduction is consistent with the requirements of this section and that the amount deducted is consistent with the amount reported through the board's disposal reporting system, and if so, the board shall approve the deduction made by the jurisdiction; +E (3) if the board believes that the amount deducted does not meet the requirements of this section or if the amount deducted is not consistent with the amount reported through the board's disposal reporting system, then the board shall notify the jurisdiction of its preliminary determination and confer with representatives of the jurisdiction in order to reach agreement regarding the amount of the deduction. If the jurisdiction agrees upon the amount of the deduction, the board shall approve the deduction as modified. If agreement upon the amount of the deduction can not be achieved, the jurisdiction may either request a hearing before the board to obtain a final determination, or it may withdraw its request for a deduction. Page 2 of 4 (d) If a jurisdiction requests the deduction from its reported disposal amount as provided for in subsection (c), and the jurisdiction has previously obtained board approval to revise or correct its base -year generation tonnage to include disposal of inert waste as defined in subsection (b)(2): (1) the jurisdiction shall also, in its 2001 annual report, deduct tonnage from its base -year disposal in an amount equal to the amount deducted from the jurisdiction's 2001 disposal tomrage pursuant to this section, but in no case shall the jurisdiction be required to deduct an amount from its base -year disposal tonnage that is greater than the amount of disposal of inert waste as defined in subsection (bx2) that was included in its most recent board - approved revised base -year, _ .. . (2) the board shall verify—that the base -year deduction is consistent with the re'_ gniretnents of this section, and if so, the board shall approve the revised base -year disposal tonnage accordingly; (3) if the board believes that the base -year deduction is not consistent with the requirements of this section. then the board shall notify the jurisdiction of its preliminary determination and confer with representatives of the jurisdiction in order to reach agreement regarding the amount of the deduction. If the jurisdiction agrees upon the amount of the deduction, the board shall approve the revised base -year disposal tonnage accordingly. If agreement upon the amount of the deduction can not be achieved, the jurisdiction may either request a hearing before the board to obtain a final determination, or it may withdraw its request for a deduction. Page 3 of 4 (e) (1) If a jurisdiction makes the deduction from its reported disposal amount in 2001 as provided for in subsection (c), the jurisdiction shall deduct all inert waste as defined in subsection (b)(2) from its reported disposal tonnage in all of its annual reports for all subsequent years. (2) If the Board approves the jurisdiction's revised base -year disposal tonnage as provided in subsection (d), that revision shall be permanent. (3) If a jurisdiction's reported disposal amount in 2001 does not contain any inert waste as defined in subsection (b)(2), the jurisdiction may indicate in its 2001 annual report that it is electing to deduct any of this waste that may be reported in future years. The jurisdiction shall deduct, when applicable, all inert waste as defined in subsection (b)(2) from its reported disposal tonnage in all of its annual reports for all subsequent years. (4) If a jurisdiction does not make the deduction from its reported disposal amount in 2001 as provided for in subsection (c), or the election provided in subsection (e)(3), it shall not do so in subsequent years. (t) Nothing in this section limits the authority of the board to require any facility that uses or places inert material on property where surface mining operations are being conducted, or have been conducted previously, to report to the board on the quantities of inert material used or placed on the property for the purpose of reclamation. (g) It is not the intent of the Legislature to require a city, county or regional agency to revise its source reduction and recycling element to comply with this section other thanas specified in this section. (h) Prior to July 1, 2005, the board shall report to the Legislature on the impact of this section on _ source reduction and recycling element implementation including but not limited to: (1) the number of jurisdictions utilizing this deduction; (2) the impact on these jurisdictions' diversion rates; and, (3) the impact on these jurisdictions' program implementation. Page 4 of 4 AZUSAi CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES {� DATE: AUGUST 26, 2002 W SUBJECT: BUDGET AMENDMENT TO COVER RIVER RELATED EXPENSES RECOMMENDATION It is recommended that the Utility Board/City Council authorize a Budget Amendment in the amount of $200,000.00 to cover 2002/2003' River related expenses. BACKGROUND The Utility Board/City Council previously authorized Azusa Light & Water to support the management and restoration of portions of the San Gabriel River area. It is necessary to allocate additional funds for this project through 2002/2003. FISCAL IMPACT Fiscal impact to Azusa Light & Water will be $200,000.00. Funds will be transferred from the Utility's retained earnings. Prepared by: Phyllis Bradley Administrative Services Supervisor CITY OF AZUSA BUDGET AMENDMENT REQUEST (New Appropriation) Department: __ Uti1i.tj.e_5 Fiscal Year: 2002-2003 Requested by: _Phyl l is_Bradlev _ Date: August 21, 2002 PROJECTED EXPENDITURE(S): FUNDING SOURCE ,Rnu. ul lu the highest $10 -f Account # Project # Amount` Account # Project # Amount 32-40-721-798-6493 200,000.00 32-00-000-000-3605 200,000.00 Is Total: 200,000.00 Total: 200,000.00 Reason for Amendment: Suzanne Avila & River Projects Impact on other urograms: N/A NOTE: t. Amendments of 525,000 or less require approval of the Finance Director. 2. Amendments between $25,000 and $100,000 require approval of the City Manager and the Finance Director. 3. Amendments between $100,000 and $1,000,000 require adoption of a resolution by City Council d. Amendments oyer $1,000,000 shall be approved by City Council following a 13.1,1111 Imarin0. APPROVAL FINANCE ONLY Department Head: �_ri.�I Date:-_-._________.. Processed By: _ _. Date: Finance Director: _________________ Date: ------------- GL Batch: GL Budget Ref:--.- __........ City Manager: ________________ Date:.__-_,_ ..._ _._. JL Batch, JL Budget Ret:.. _ Council Approved on: -f r 4or 'm fa . CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES�h- DATE: AUGUST 26, 2002 SUBJECT: DECLARE PROPERTY SURPLUS AND OFFER TO SALE PURSUANT TO CALIFORNIA GOVERNMENT CODE RECOMMENDATION it is recommended that the Utility Board/City Council declares a vacant parcel, Assessor's Parcel No. 8608-003-903, surplus by resolution and authorize staff to proceed with disposition of said property in accordance with California Government Code commencing with Section 54220 of Article 8, Division 2, Title 5. BACKGROUND The subject property is generally located at the northern terminus of Canyon Heights Drive in Azusa. It is one of the parcels the City acquired through acquisition of Azusa Valley Water Company. There is an above ground water storage reservoir with appurtenant structure on this property. All these structure _and equipment have been taken out of service three years ago. There is no planned use of this property for either Water or Electric Utility in the future. There is an interest from a private party wanting to acquire said property. However, in accordance with California Government Code public properly for disposal has to be declared surplus by a resolution, then it has to be offered to public or non-profit agencies within certain time limits. When and only after offer to public and non-profit agencies has expired, the property can be advertised for sale to private parties. FISCAL IMPACT Sale of the subject surplus property will generate one-time revenue, and also eliminate future maintenance cost and potential liability exposure. r Prepared by: J. Hsu M a 0i3/iWei aiNlei A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AUTHORIZING THE DISPOSAL OF SURPLUS LAND LOCATED AT GRANDVIEW DRIVE AND IN THE CITY OF AZUSA. WHEREAS, Article 8, Division 2, Title 5 of the California Government Code, commencing with Section 54220, authorizes the City to dispose of surplus land by offering to sell or lease such land to certain public entities or associations for the purposes of developing low and moderate income housing or for park, recreation or open space purposes or enterprise zone or program area purposes; and WHEREAS, the City owns certain land located at the northern terminus of Canyon Heights Drive (Assessor's Parcel No. 8608-003-903) in the City of Azusa, and more particularly described in the legal description attached hereto and incorporated by reference; and WHEREAS, the City has determined that the land is no longer necessary for the City's use, NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1. The City shall offer the surplus land for sale or lease pursuant to the surplus land provisions of Article 8, Division 2, Title 5 of the California Government Code, commencing with Section 54220; and Section 2. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED this 26' day of August, 2002. Cristina C. Madrid, Mayor ATTEST: Vera Mendoza, City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF AZUSA I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that the foregoing Resolution No. was duly introduced and adopted at a regular meeting of the Azusa Light & Water Utility Board on the 26' day of August, 2002, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Vera Mendoza, City Clerk W I I ism"i AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: AUGUST 26, 2002 SUBJECT: TRANSFER OF WATER RIGHTS RECOMMENDATION: It is recommended that the Utility Board/City Council authorize staff to process an application to the Main San Gabriel Basin Watermaster to transfer Azusa Agricultural Water Company's water rights (Azusa's share) from Azusa Valley Water Company back to the City of Azusa. BACKGROUND The City of Azusa's share of Azusa Agricultural Water Company's (AAWC) water rights have been treated as the City's entitlement and as such, have been used to off -set the City's water production. These rights were transferred to Azusa Valley Water Company (AVWC) in FY 97- 98. The result created surplus of water rights in Azusa Valley Water Company and decreased the available water rights in the same amount in the City's water system. Financially, AVWC began to have excess water rights, but the City's water system required additional replacement water purchases. FISCAL IMPACT Please see the attached estimates based on our records as of June 30, 2002. �i ATTACHMENT TO STAFF REPORT RE: TRANSFER OF WATER RIGHTS A. Base Case (Condition as of today) Azusa Water AVWC Water rights 3,656 Ac -Ft 12,963.79 Ac -Ft Production 9,369 Ac -Ft 12.938.00 Ac -Ft Replacement Water Req'd 5,713 Ac -Ft (25.79) Ac -Ft Replacement Water Cost: 5713 AF X $130.00/AF = $742,690 B. Historical Case (Assuming Azusa Ag's water is transferred back to the City) Azusa Water AVWC Water rights 5,922.73 Ac -Ft 10,696 Ac -Ft Production 9,369 Ac -Ft 12,938 Ac -Ft Replacement Water Req'd 3,446.27 Ac -Ft 2,242 Ac -Ft Replacement Water Costs: 3446.27 AF X $130.00/AF = $448,015 2242.00 AF X $246.65/AF = $552,989.30 Total: $1,001,015 r INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL ,, FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESV qj DATE: AUGUST 26, 2002 SUBJECT: FLEX YOUR POWER ENERGY CONSERVATION AWARD BACKGROUND In response to the 2001 summer energy crisis and the governor's request for energy reduction, the City of Azusa, led by Azusa Light & Water, created a multi -pronged approach to reducing energy usage in Azusa. At the same time, the State of California created a Flex Your Power communication campaign to educate the public on ways they could contribute to the governor's goal of 10% energy reductions. Thanks to all the businesses, residents, and government agencies, the State surpassed the governor's goal. To celebrate this success, the State and Consumer Services Agency initiated a recognition program and the winners would receive Flex Your Power Energy Conservation Awards. Azusa Light & Water submitted an application on behalf of the City and was among the winners. The awards ceremony was last Tuesday, August 20 in Sacramento. Further, Aileen Adams, Secretary, State and Consumer Services Agency expressed an interest In coming to Azusa and meeting our Utility Board members. She is Interested in our conservation programs and projects. FISCAL IMPACT None Prepared by: Karen Vanca, Assistant Director/Customer Care & Solutions J GRAY DAVIS GOVERNOR .* 14 State and Consumer Services Agency OFFICE OF THE SECRETARY 915 Capitol Mall, Suite 200 Sacramento, CA 95814 FOR IMMEDIATE RELEASE Contact: Claudia Chandler, 916/6544989 David Osborne, 916/653-2654 African American Museum Building Standards Commission Consumer Affairs Fair Employment & Housing Fair Employment & Housing Commission Franchise Tax Board General Services Insurance Advisor Personnel Board Public Employees' Retirement System Science Center Slate Teachers' Retirement System *** MEDIA ADVISORY *** MEDIA ADVISORY *** MEDIA ADVISORY *** STATE TO ANNOUNCE WINNERS OF FIRST-EVER FLEX YOUR POWER ENERGY CONSERVATION AWARDS SACRAMENTO — State and Consumer Services Agency Secretary Aileen Adams, Technology, Trade, and Commerce Secretary, Lon Hatamiya, California Environmental Protection Agency Secretary Winston Hickox, and Resources Agency Secretary Mary Nichols will announce the winners of the 2002 Flex Your Power Energy Conservation Awards. The award ceremony will take place in the new Department of Education building at 1430 N Street, Sacramento on Tuesday, August 20 at 11 a.m. WHO: Aileen Adams, Secretary, State and Consumer Services Agency Lon Hatamiya, Secretary, Technology, Trade, and Commerce Agency Winston Hickox, Secretary, California Environmental Protection Agency Mary Nichols, Secretary, Resources Agency Walter McGuire, Director, Flex Your Power WHAT: Award ceremony for the winners of the 2002 Flex Your Power Energy Conservation Awards. The winners include: • 22 companies, local governments, and non-profit organizations. • 18 organizations and businesses will receive special recognition for organizational leadership. WHEN: Tuesday, August 20, 2002 11:00 a.m. to 12 noon WHERE: New Department of Education Building, Is' Floor Board Room 1430 N Street (comer of N and 15`s Street) Sacramento U. � PROGRAM STATEMENT On March 19, 2001, Azusa, with 13,500 residential and 1,615 commercial electric customers, was notified by Southern California Edison to drop load immediately, which triggered a rolling blackout. To respond to the California energy crisis and avoid rolling blackouts in Azusa created a three -pronged approach to reduce the need for electricity and avoid rate increases: (1) large business customer load reduction program, (2) City facilities load reduction program, and (3) residential customer conservation program. An estimated five -megawatt reduction in electric consumption from i l a.m. to 7 p.m. from May 1 to September 31 would protect the City from rolling blackouts, in most circumstances, then a load reduction maintenance program thereafter. Business Custaner Program - Created to provide financial incentives to large customers to encourage their energy reduction during peak hours. For flexibility, the program had two options - a fixed schedule of load reduction or an on-call provision where customers would reduce a committed amount of load when called upon. Our goal was four megawatts savings from this source. Seventeen of our 34 largest business customer commitments combined to exceed the goal, ranging from 4.25 to 6.15 megawatts at all times during peak hours. Further, Azusa Light & Water faxed and e-mailed updates on stages of Alert status to business customers. Azusa Light & Water's web site and automated phone message were also updated daily. To reach smaller business customers, utility representatives spoke to business groups about conservation, provided energy tip handouts, and answered questions specific to their businesses. City Facilities Program - The City Manager called City facilities into action by way of an Executive Order - Electrical Load Reduction Program. The program required each City department to develop a set of actions to reduce electrical load during Stages 2 or 3 Alerts issued by the Cal ISO. Each department was also required to assign a specific employee to be responsible for implementing their department plan. These department designees were notified of Alerts by e-mail. The Executive Order distributed responsibility for enforcing conservation actions to all department heads and their employees. Azusa Light & Water was pleased with the employee responsiveness. City facilities were able to reduce 1 megawatt on-call. City departments reduced 14% and saved $12,700.00 compared to use the same time last year. This brought our total business and City facilities electric load available for reduction to 5.25 - 7.15 megawatts. Additionally, an energy audit was conducted of City buildings and cost benefit analyses were performed. Retrofits will be done in 2002 and will provide 48 kW demand savings and 875,000 kWh savings.. Residential/Community Program - August was designated as Shorts Day in Azusa - The Coolest City in California - to celebrate the 14% community -wide energy savings, 4% more than requested by the Governor. The celebration began at 7 a.m. with free coffee, juice, and doughnuts, live music, cheerleading, and karate demonstrations for an enthusiastic crowd of more than 300 who wore shorts as they gathered at the City Hall plaza and were greeted by Azusa's mayor. This was followed by three concerts at Memorial Park to encourage Azusa residents to give their appliances the evening off. Hand fans, balloons, and energy tips were handed out to attendees. Additionally, home energy audits were available to residents with a bonus giveaway of an energy-saving compact fluorescent light bulb. Watts Up meters were purchased to demonstrate to customers how much energy a specific appliance in their home uses. The meters are also available on a loan basis to customers. One hundred home energy audits were completed during the summer by summer interns. Children - A nationally -recognized conservation educational program was provided to all Azusa fifth graders. Students received a kit with a compact fluorescent bulb and a low flow shower head plus a checklist for conducting their own home energy audit. Sixth grade classes participated in a contest to &eate and produce conservation videos. The three winning classes received prizes contributed by local businesses. The videos were shown on Azusa's community television station during the summer. SUMMARYSTATEMENT The City of Azusa responded to the threat of energy blackouts by creating a holistic plan where everyone in the city was able to participate in maintaining our quality of life in Azusa. The results were positive - the City was prepared for the worst. We believe the success was due to the cohesive actions and positive attitudes of the City's businesses, employees, residents, and children. City employees saved $12,700.00 in energy costs and the total community made 5.25 - 7.15 megawatts available for energy reductions, should we have been called upon to reduce load. This was more than our targeted 5.0 megawatts. This cohesive community effort has shown the community that, by working together, they were able to see results - maintain non -interrupted electric service and avoid rate increases. Azusa businesses, residents, employees, and children are all aware of the limited supply of energy and how they can each conserve. For this accomplishment, Azusa Light & Water received an award from the California Municipal Utilities Association, an association of 31 California municipal utilities, in the category 2002 Community Service/Resource Efficiency Award Small Utility for our "2001 Load Reduction Program." Additionally, State Senator Gloria Romero gave Azusa Light & Water a certificate of recognition for its leadership and commitment for presenting the best energy conservation program in the Stats of California and for serving as a model for all cities and counties. State Assemblyman Ed Chavez gave Azusa Light & Water a certificate of recognition and Assembly Resolution in recognition of Azusa's commitment and leadership in providing innovative and outstanding energy conservation program for its business and residential community. Azusa is proud of its accomplishments. Flex your power award proposal 4-02.doc TO: FROM: DATE: SUBJECT: INFORMATIONAL ITEM HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL JOSEPH F. HSU, DIRECTOR OF UTILITIES /1w� AUGUST 26, 2002 iJ ELECTRIC UTILITY OPERATING COST AND REVENUE PROJECTION FY 03-08 RECOMMENDATION It is recommended that the Utility Board/City Council receive staff presentation, ask questions, and defer the approval of recommended rate increase to a City Council meeting on September 16, 2002, in conjunction with a Public Hearing for the same. BACKGROUND Retail electric rates have not been adjusted since 1992 for commercial and industrial customers, and since 1994 for residential customers. Despite continual cost increases for labor and materials since prior rate adjustments, the Electric Utility was able to offset these cost increases through: (1) load growth (increased energy sales), and (2) more efficient power resource management. Electric deregulation beginning in 1996 not only disrupted Azusa's normal planning and projection of the City's power supply, it turned the whole electric utility industry into disarray and chaos: Azusa was one of the few fortunate ones whose Electric Utility came through the warring period relatively unharmed. However, the wholesale energy market has been reduced In size and supply compared to the pre -deregulation period, and the resulting energy prices from a limited number of suppliers have become less competitive. From the attached slides the customers of Azusa Light & Water still can take comfort that Azusa's near term (FY 03-08) power supply costs are still quite stable, and hence there are no significant revenue shortfalls. Increases in the 5-10% range will be needed as illustrated In the projections. Staff will continue to update the Board and City Council of new 'developments in the energy market, as well as legislative and regulatory arenas that affect the electric utility Industry. Prepared by J. Hsu Azusa Utility Board Meeting Light Fund Cost and Revenue Projection FY 03-08 August 26, 2002 • ;.]L Overview . Light Fund Actual Costs and Revenues Cost and Revenue Projections Assumptions Budget Projections Conclusions Proposed Rate Increase Conclusions 0 Next Steps "Imm" Light Fund Actual Costs and Revenues COST COMPONENT FY 96-97 FY 097-98 FY98-99 FY 99-00 FY 00-01 FY O1-02 (**) NET POWER RESOURCE COSTS $14,785,837 $13,061,124 $9,984,491 $10,672,609 ($2,953,773) $23,029,000 DISTRIBUTION & CUSTOMER SERVICE $2,924,284 $4,959,138 $5,012,214 $3,618,595 $5,713,358 $5,000,000 DEPRECIATION $400,675 $447,509 $450,871 $479,672 $494,486 $500,000 GENERAL FUND TRANSFER & IN-LIEU-TAX $1,944,437 $2,132,429 $2,107,190 $2,168,166 $2,174,755 $2,066,478 TOTAL COSTS $20,055,233 $20,600,200 $17,554,766 $16,939,042 $5,428,826 $30,595,478 RETAIL SALES(MWh) 223,904 226,116 236,548 249,334 244,769 235,625 RETAIL REVENUE $19,636,829 $19,830,825 $20,745,733 $21,867,090 $21,466,731 $22,464,784 OPERATING INCOME (LOSS) ($418,404) ($769,375) $3,190,967 $4,928,048 $16,037,905 ($8,130,695) (**) ESTIMATED Cost and Revenue Projections: Assumptions 1. Azusa successfully becomes PTO and receives reimbursement for its transmission contracts and CAISO transmission rate methodology doesn't change. z. Wholesale power costs in the future remains stable in the range of $40 to $50/MWh for peaking power s. No major expenditures in refurbishment or replacement of San Juan #3 a. San Juan #3 availability remains at historical level of 90% on an annual basis 5. Distribution & customer service costs will escalate at 3% per annum 6. New substation will be funded by debt. Additional SCE costs for the interconnection of about $2,500,000 will be required ,. General Fund transfer & in -lieu -tax will remain at current level of 10% of retail revenues. s. Retail sales will grow at 1.5% per annum from FY 00-01 level. 9. Surcharge of one cent per KWh will remain through June 2003. • Cost and Revenue Projections: Budget Projections COST COMPONENT FY 02-03 FY 03-04 FY04-05 FY 05-06 FY 06-07 FY 07-08 TRANSMISSION $ 1,850,000 $ 2,120,000 $ 1,990,000 $1,990,000 $1,990,000 $1,990,000 PTO REIMBURSEMENT $ (518,500) $ (1,050,000) $ (1,050,000) $ (1,050,000) $ (1,050,000) $ (1,050,000) POWER RESOURCE $15,032,000 $ 22,400,000 $23,000,000 $ 23,400,000 $ 23,700,000 $24,320,000 WHOLESALE SALES $ (1,225,000) $ (8,200,000) $ (8,330,000) $ (8,550,000) $ (8,840,000) $ (9,250,000) SUBTOTAL -POWER RESOURCES $15,138,500 $15,270,000 $15,610,000 $15,790,000 $15,800,000 $16,010,000 DISTRIBUTION & CUSTOMER SERVICE $5,713,358 $ 5,884,759 $6,061,302 $ 6,243,141 $6,430,435 $6,623,348 NEW.SUBSTATION $0 $0 $1,000,000 $1,000,000 $ 1,000,000 $1,000,000 DEPRECIATION $500,000 $500,000 $500,000 $ 500,000 $500,000 $ 500,000 GENERAL FUND TRANSFER & IN -LIEU -TAX $2,192,550 $2,245,171 $2,278,849 $2,313,031 $2,347,727 $ 2,382,943 TOTAL COSTS $23,544,408 $23,899,930 $ 25,450,150 $25,846,172 $ 26,078,162 $ 26,516,291 PROJECTED RETAIL SALES (MWh) 250,000 256,000 259,840 263,738 267,694 271,709 PROJECTED RETAIL REVENUE $ 21,925,500 $ 22,451,712 $ 22,788,488 $ 23,130,315 $ 23,477,270 $ 23,829,429 SURCHARGE aQ ONE CENT PER KWh $ 2,350,000 $0 $0 $ 0 $0 $ 0 TOTAL REVENUES $24,275,500 $22,451,712 $22,788,488 $23,130,315 $23,477,270 $23,829,429 ADDITIONAL REVENUE REQUIREMENT $(731,092) $1,448,218 $2,661,663 $2,715,857 $2,600,892 $2,686,862 REQUIRED RATE ADJUSTMENT IN % 6.45% 11.68% 11.74% 11.08% 11.28% Cost and Revenue Projections: Conclusion 1. Revenue requirement for power resources costs will remain stable for the study period z. Distribution & Customer service costs combined with the costs of new substation will outpace the retail revenue growth 3. Light Fund will run into deficit as early as FY 02-03 if the current retail rate remain in place 4. Retail rate increase will be necessary to support the revenue requirement as well as to provide some moderate level of contingency reserves. Proposed Rate Increase COST COMPONENT FY 02-03 FY 03-04 FY04-05 FY 05-06 FY 06.07 FY 07-08 TRANSMISSION $1,850,000 $2,120,000 $1,990,000 $1,990,000 $1,990,000 $1,990,000 PTO REIMBURSEMENT ($518,500) ($1,050,000) ($1,050,000) ($1,050,000) ($1,050,000) ($1,050,000) POWER RESOURCE $15,032,000 $22,400,000 $23,000,000 $23,400,000 $23,700,000 $24,320,000 WHOLESALE SALES ($1,225,000) ($8,200,000) ($8,330,000) ($8,550,000) ($8,840,000) ($9,250,000) SUBTOTAL - POWER RESOURCES $15,138,500 $15,270,000 $15,610,000 $15,790,000 $15,800,000 $16,010,000 DISTRIBUTION & CUSTOMER SERVICE $5,713,358 $5,884,759 $6,061,302 $6,243,141 $6,430,435 $6,623,348 NEW SUBSTATION $0 $0 $1,000,000 $1,000,000 $1,000,000 $1,000,000 DEPRECIATION $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 GENERAL FUND TRANSFER & IN -LIEU -TAX $2,270,050 $2,357,430 $2,392,791 $2,428,683 $2,465,113 $2,502,090 TOTAL COSTS $23,621,908 $24,012,189 $25,564,093 $25,961,824 $26,195,548 $26,635,438 PROJECTED RETAIL SALES (MWh) 250,000 256,000 259,840 263,738 267,694 271,709 PROJECTED RETAIL REVENUE w/ 5% INREASE $22,700,500 $23,574,298 $23,927,912 $24,286,831 $24,651,133 $25,020,900 SURCHARGE @ ONE CENT PER KWh $2,350,000 $0 $0 $0 $0 $0 TOTALREVENUES $25,050,500 $23,574,298 $23,927,912 $24,286,831 $24,651,133 $25,020,900 ADDITIONAL REVENUE REQUIREMENT ($1,428,592) $437,891 $1,636,181 $1,674,993 $1,544,415 $1,614,538 REQUIRED RATE ADJUSTMENT IN % 1.86% 6,84% 6.90% 6.27% 6.45% 4 Proposed Retail Rate Increase: Conclusion 1. The 5% rate increase will provide sufficient revenues to cover expenses in FY 02-03 and FY 03-04 with very moderate level of contingency reserve available. z. Additional rate increase in the range of 5% to 10% will be required starting FY 04-05 to support the capital costs of the new substation. ,L Next Steps 1. Initial presentation to Utility Board in August z. Public hearing — Second City Council Meeting in September 3. Implement new retail rate beginning October 1, 2002 INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: AUGUST 26, 2002 SUBJECT: FY 2001-02 WORKPLAN UPDATES FOR AZUSA LIGHT AND WATER RECOMMENDATION It is recommended that the Utility Board/City Council receive the attached workplan updates for Azusa Light & Water for review and comment. BACKGROUND Staff from different divisions of Azusa Light & Water prepared the attached workplan updates for the Utility Board's consideration and input. This information is provided in the same format as that used by the City for non-utility functions. The period covered by most of the attached updates includes the 2001-2002 fiscal year, from July 1, 2001 through June 30, 2002, effectively closing out last year's activities. The Board may provide input or comments regarding specific projects. FISCAL IMPACT This is no fiscal impact as a result of this report. CITY OAF AZUSA FY2002 WORKPLAN Project Name: Public Benefit Program Restontial Programs Division: Light & Water Tram I fader/MP.mhPm: Karen Vanra Brief Description of Project: Design Public Benefit residential programs, develop administration procedures and brochures. Funding Source: Public Benefit Funds Account Number: 24-40-739-082-6625 First Quarter Status: Research. Second Quarter Status: Designed three programs: (1) Refrigerator Rebate, (2) Air Conditioner Replacement, and (3) Weatherization. Developed administration procedures. Created bill insert flyers and brochures with applications. Third Quarter Status: Programs are fully operational and tracking systems are in place. Fourth Quarter Status: Completed. Year End Disposition: Completed. Schedule: Develop residential programs and get them to market first quarter. Notes: CITY OF AZUSA' FY2002 WORKPLAN Project Name:: Referral of Charter Entertainment II, LLP Services and Light & Water Employee Incentive Program Division: Light & Water Team Leader/Members: K. Vanca, S. Acero Brief Description of Project: Light & Water and Charter Entertainment II, LLP (Charter) entered into an agreement that would allow light & Water customer service employees to refer its customers to Charter to purchase cable television services and/or cable modem high speed data services. Charter would, in tum, pay Azusa Light & Water a fee, comparable to Charter's cost of signing up a new customer, for each actual installation in the City of Azusa. Funding Source: Enterprise Fund Account Number: First Quarter status: Collaborated with Charter on terms and conditions of agreement. Worked with employees on the employee incentive program. City Council approved agreement between Azusa and Charter and the pilot employee incentive program. Second Quarter Status: Employee training and program implementation took place. Third Quarter Status: Program is active. Fourth Quarter Status: : Program is active. Year End Disposition: Program activated. Schedule: To get program developed, approved, and operational by December 31, 2001. Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: State Funding For Automatic Meter Reading (AMR) Interval Meters Division: Light & Wier Tram I rader/Memhers' K. Vanra. D. RamlrP..]. R. Tann Brief Description of Project: With other SCPPA members, Azusa Light & Water to apply for State funds for installing AMR interval meters on 34 largest customers with peak demands equal to or exceeding 200 kW. Meters to provide ability for customers to view their hourly consumption via Internet, L&W to remotely retrieve usage data for billing, and provide Resource Planning with real time load monitoring capability. May 1, 2002 Provide web site access to data via an Funding Source: AB29X deposited to 28-40-730-067-6569Account Number:: 28-40-730-067 540 First Quarter Status: Met internally to strategize based on the needs of large customers, Consumer Services, Resource Planning, and the Electric Division. Applied for State funding and received approval. Second Quarter Status: Received half funding. Went to bid for meters. Third Quarter Status: Received and tested meters. Fourth Quarter Status: : Meters were installed as required for State funding. Web access made available via Hometovm Connections' Key Meter program. Year End Disposition: : Complete. Schedule: : Purchase and receive TOU meters March 1, 2002 Test and program modems March 1S, 2002 Install TOU meters and train end-users May 1, 2002 Provide web site access to data via an July 1, 2002 outside service Notes: W' r CITY OF AZUSA FY2002 WORKPLAN Project Name:: Evaluating Postage Costs Division: Team 1 Paler/MemMrs: K. Vans M. Shenard Brief Description of Project: Research opportunities to reduce postage rate. Account Number: 3140-711-9035518 Funding Source: Utility Enterprise Fund First Quarter Status: Determined we could go with a pre-sort mail house to save approximately $6,000/year and contracted with vendor for daily pickup of Ught & Water mail. Second Quarter Status: Sent out Request For Proposals for bill print and mail services. We will compare proposals to our internal cost. If we can derive substantial savings by contracting out, Ught & Water will make a recommendation to the Ublity Board. Third Quarter Status: Request For Proposal responses evaluated and costs compared to our internal costs. Since substantial savings could be achieved, Utility Board/Council approved L&W's recommendation to contract out this service effective I dy 1 2002. Fourth Quarter Status: Process begun to outsource bill print and mail. Year End Disposition: Process of outsourcing to be completed in September 2002. Schedule: If contracting out is determined to be cost-effective and it is approved by the Utility Board, target implementation date will be July 1, 2002. Notes: CITY OF AZUSA FY 2001-02 WORKPLAN Project Name: Automated Payment Option Division: Light & Water Consumer Services Team Leader/Members: K. Vanca, S. Acero, K. Morningstar Brief Description of Project: Light & Water desires to offer payment options to improve customer service. Funding Source: Utility Enterprise Fund Account Number: 31-40-711-903-6518 First Quarter Status: Last year Council approved the concept and changes to the Rules and Regulations. First Quarter 2001-02, the payment option was activated by testing the electronic procedure between Light & Water and the bank. We also piloted the program with two City employees. Second Quarter Status: Offered the automated payment option to Azusa Light & Water customers. By mid-quarter 47 customers signed up. Infomtation about the automated payment option was put on the Light & Water web site. Third Quarter Status: An article was run in the March 2002 Azusa Tomorrow to increase participation. Fourth Quarter Status: Completed. Year End Disposition: Completed ahead of schedule. Schedule: To have automated payment option fully implemented by the end of the second quarter. This was accomplished as planned. Notes: r CITY OF AZUSA FY2002 WORKPLAN Itron Division: Light & Water I Team I PaAPr/MPmhPm! Karen Vanra/Derek MrFann Brief Description of Project: Upgrade remaining four Itron handhelds with more memory and with capability to read AMR meters. A pilot project has been undertaken by the Electric Division to install single-phase residential meters to replace hard to access meters and meters at new housing tracts. Account Number: 31-40-711-902-7140 Funding Source: Utility Enterprise Fund First Quarter Status: Second Quarter Status: First handheld sent to vendor for upgrade. Third Quarter Status: Two handhelds sent to vendor for upgrade. Fourth Quarter Status: last handheld sent to vendor for upgrade. Year End Disposition: Complete. Schedule: Develop residential programs and get them to market first quarter. Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: State Funding For Energy Efficiency Programs Division: tight & Water Team I ParlP.r/MPmhPrsf K. Vanfa Brief Description of Project: With other SCPPA members, Azusa tight & Water to apply for State funds made available through S85X for energy efficiency programs. Account Number:: 2&40-730-066-6625 Funding Source: : SBSX deposited to 28-00-730-066- First Quarter Status: Funds were awarded to SCPPA members. Azusa Light & Water decided to use its share of $141,960 to increase funding for energy efficiency projects for new and existing businesses. Second Quarter Status: All funding has been received. Azusa Light & Water has already paid out 22% of the funds. Third Quarter Status: All SBSX funds have been expended on customer projects. Fourth Quarter Status: Completed. Year End Disposition: Completed ahead of schedule. Schedule: Apply for SBSX funds first quarter. Implement program and use all funds by fiscal year-end. Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Electric Construction Office Remodel (CIP) - Division: Electric Tnam 1 .11-r/MPmham' Ramweo/n Kiar Brief Description of Project: Remodel the Electric Construction Office. This project is being carried over from fiscal year 2000-2001. Funding Source: Ught ($ 80,000) Account Number: 33-80-000-730-7120/73001C First Quarter Status: Reviewed plans for remodeling existing building and met with architect Mr. Henry Woo to discuss the expansion of office space at the city yard. Second Quarter Status: Upon reviewing the options for additional office space for electric, public works, parks division and city engineering, Utilities Director Mr. Joseph Hsu decided that the best alternative was to build a new multi use building. The city manager and the Utility Board concurred with Mr. Hsu recommendation. Third Quarter Status: Project cancelled funds to be transfer to new building fund. Fourth Quarter Status: Project cancelled funds not-able to be transferred to new building fund. Year End Disposition: Project drop from CIP list. Schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Infrared Inspection Division: Electric I Team I PadPr/MPmhPm' RamiMWKiar Brief Description of Project: Annual infrared inspection of 12 W Overhead lines with infrared equipment and camera to locate hot spots on the electric system, so that preventative maintenance can be preformed. This helps prevent customer outages. Funding Source: Operations O.H. line Expense Account Number: 33407358306493 First Quarter Status: No activity Second Quarter Status: No activity Third Quarter Status: schedule inspection (blanket purchase order.) Fourth Quarter status: Infrared Inspection took place the week of April 22.25, 2002. The Inspection identified 10 items that need to be repaired. Repairs were completed by the end of June. Year End Disposition: Project completed Scheduled: Notes CITY OF AZUSA FY2002 WORKPLAN Project Name: Landfill Gas Electric Plant/ Interconnection Facilities (Co -Gen) (CIP) Division: Electric Ta rn 1 n dPHMomhcrcn F. I annitJRamiro7 Brief Description of Project: Contractual agreement for Interconnection Facilities between Light and Water Department and Project Developer. Project developer will reimburse the department for their expenses. This project is being carried over from fiscal year 2000-2001. Funding Source: Light ($ 275,000) Account Number: 33-80-000-730-7199/73001A First Quarter Status: Retained professional engineering services of RW Beck as per agreement with co-gen project developer. Work Commenced Feb. 2001 Second Quarter Status: Preliminary draft of engineering design forwarded by RW Beck to Azusa Light 8L Water. Portion of engineering cost were incurred. Third Quarter Status: As of lune 2001, co-gen project developer was notified that project Is put on hold pending resolution of contract amendments. Fourth Quarter Status: Contractual agreement for Interconnection facilities expired. Year End Disposition: Project dropped from CIP list. Schedule: N/a Notes: Project on hold until contract amendments are resolved. Project Will be subject to termination If amendments are not settled before expiration of agreement. CITY OF AZUSA H2002 WORKPLAN Project Name: Line Truck (Boom Truck) with 60' Derrick (CIP) Division: Electric I Team I PaAodMPmhPm, n. RamirP7 Brief Description of Project: The new line truck will replace an existing 1982 GMC/Pitman Pole Cat 2400 model line truck that was purchased in 1983. The lead-time for delivery of a line truck is about 12 months from the time the manufacturer receives the order. Funding Source: Light ($ 290,000) Account Number: 33-80-000.730-7135/73002A First Quarter Status: Preparing equipment specifications Second Quarter Status: Formal bidding process completed, bid awarded to Pacific Utilities Inc. Waiting on city execution of contract and issuance of purchase order. Third Quarter Status: Contract executed and purchase order Issued. Fourth Quarter Status: Waiting on manufactures delivery scheduled. Year End Disposition: Project funds carried over to fiscal year 2002/2003. Schedule Lead-time for delivery of equipment 180 to 210 days after manufacture receives order or 90 days from the time manufacture receives the chassis from the dealer.. Delivery of derrick due in September/October 2002. Notes: Purchase price $ 184,990 CITY OF AZUSA FY2002 WORKPLAN Project Name: Tree Maintenance /Circuit Trimming Division: Electric TPafn l Padpr/MPmripm, RAMirP..7/KlAr Brief Description of Project: Maintenance annual circuit trimming (power line clearance) intended as pro -active maintenance program to reduce or eliminate customer outages due to trees coming in contact with high voltage power lines. Funding Source: Operations Maintenance of O.H. Unes Account Number: 33407359306493 First Quarter Status: Scheduled contractor (West Coast Arborists Inc.) and held pre job meeting Second Quarter Status: Gran trimming started and completed for FY 2001/2002 In this Quarter 2,042 trees trimmed. Third Quarter Status: Held job completion meeting. Scheduled training on Arbor Access program for electric (data entry) personnel in order to update Inventory information and run some basic reports. Fourth Quarter Status: No change. Year End Disposition: Two thousand and forty two trees trimmed away from power -lines during fiscal year. Schedule Tree trimming line clearance scheduled work completed for fiscal year 2001/2002 Nates: Cost to date this year $ 73,512 West Coast to review inventory data per electric department request, minor changes. CITY OF AZUSA FY2002 WORKPLAN Project Name: Pole Maintenance/ Inspection Testing Division: Electric Tpam I parlpr/Mnmharc' Ramira7WAr Brief Description of Project: Groundline Inspection & Treatment of Distribution Poles Phase 2. Funding Source: Operations Maintenance of O.H. lines Account Number: 33407359306493 First Quarter Status: Contractor Osmose Inc. inspected 1,084 poles of those 88 poles were found to have fallen below standards. Second Quarter Status: Contractor restored 61 poles with the installation of c -truss repair units Third Quarter Status: Contractor restored 1 pole with c -truss repair unit. This completes year two of our groundline inspection program. Reviewed year ending report with contractor and requested update on database we can query. Remaining 27 poles that are not restorable have been added to the existing pole replacement list. Fourth Quarter Status: Line crew replaced 5 poles from existing phasel pole replacement list of 27 poles, which leaves 7 poles to be replaced on the list. Two poles were added to phase 2 pole replacement list bring that total to 29 poles to be replaced. Year End Disposition: Total number of poles Inspected to date 1616. Total number of poles restore with installation of c - truss to date 102. Total poles rejected to date 59. Total pole replaced to date 20. On going program. Scheduled: Pole replacement, priority poles 18 months, non priority poles 36 months, following completion of final project summary report. Notes CITY OF AZUSA FY2002 WORKPLAN Project Name: Reel Truck/Trailer (CIP) Division: Electric TPam 1 PaAPrIMPmhPm, n. RnmirP71 r). Kiar Brief Description of Project: To include new reel truck/trailer and miscellaneous underground pulling equipment. Funding Source: Light ($ 75,000) Account Number: 33-80-000-730-7140/73002D First Quarter Status: No action Second Quarter Status: No action Third Quarter Status: No action Fourth Quarter Status: Purchased two model I-85 manual hydraulic single reel bailers 8500 lbs pay load at a total cost of $16,522 Including freight and tax. Year End Disposition: CIP project completed. Schedule Equipment specifications targeted for third/fourth quarter Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Substation Site Acquisition "New Substation" (CIP) Division: Electric I Tram I rader/Mrmhrrs: F. I annit Brief Description of Project: Site needed for construction of new substation south of the 210 freeway. (1160 West Gladstone St.) Project is being carried over from fiscal year 2001-2002. Funding Source: light ($ 850,000) Account Number: 33-80-000-730-7101/82000A First Quarter Status: Performed and completed Environmental Document (Cepa) and obtained Project Approval. Started contract Agreement for purchase of land from owner. Also, completed architectural design of frontage wall and landscaping. Second Quarter Status: Closed escrow as of July 2002. Assisted in relocating previous owner and tenant to another site. Third Quarter Status: Start demolition and preliminary site improvement at 1160 West Gladstone. Performed early solicitation of design/engineering services.. Fourth Quarter Status: Complete demolition and minor site improvement in preparation for detailed design/ engineering of substation. Year End Disposition: Complete site acquisition and minor site improvement. Schedule: Demolition scheduled to start September 2002 and complete minor site improvements 30 days later. CITY OF AZUSA FY2002 WORKPLAN Project Name: Engineer, Procure, Construct (EPC) New Substation + Distribution System Division: Electric Team I PadPrlMPmhem: F. 1 annit/RamirP7 Brief Description of Project: 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 2002-2003. The project budget includes the cost of substation transmission and distribution line. A budget of $4.8 million is to be carried over for the construction which will start on FY 2002-2003, culminating on FY 2003-2004. Funding Source: Light ($ 4,700,000) Account Number: 33-80-000-730-7140/820008 First Quarter Status: Project on hold until land acquisition is completed. Project site was acquired as of July 2002. Second Quarter Status: Started solicitation of RFP for Design/Engineering of new substation. Proposals received to be revised into a Engineer, Procure & Construct (EPC) arrangement. Third Quarter Status: Evaluate and award EPC proposals and proceed with detailed engineering design. Coordinate wih Edison and make arrangement for 66kV lines to serve new substation . Fourth Quarter Status: Complete engineering design and commence with procurement of substation equipment requiring extended delivery times. Year End Disposition: Finalize review of all engineering and procurement requirements in preparation for construction. Schedule: Start construction of new substation by early 2003 Notes: Edison's cost for 66kV lines not part of this budget. CITY OF AZUSA FY2002 WORKPLAN Project Name: Distribution Sys. Relay Upgrade (Monitoring & Automation Phase-1 (CIP) Division: Electric I Team Leader/Members: F. Langit Brief Description of Project: Preventive maintenance and replacement of emsting protective devices at Azusa substation needed to improve reliability and continuity of service. Funding Source: Light ($ 251,000) Account Number: 33-80-000-730-7120/730026 First Quarter Status: Completed initial review of SEL microprocessor based protective relay devices combining meter, relay and communication features. Second Quarter Status: Solicited project proposals to perform pilot project in installing additional protective relays at e>asting substation. Third Quarter Status: Start construction of pilot project (2 circuits included are Amforge and Sierra Madre.) Fourth Quarter Status: Complete construction of pilot project and prepare for testing. Year End Disposition: Complete evaluation pilot project and submit recommendation for installation of additional relays on remaining Azusa Substation feeder circuits. Schedule: Notes: CITY OF AZUSA H2002 WORKPLAN Project Name: owl Distribution Circuit Line Extension (CIP) Division: Electric I Team I radar/MPmharc: D. RamimW F. I annit Brief Description of Project: Phase I: Extend Owl circuit to serve water filtration plant and prepare for future development along Azusa/San Gabriel Canyon Road and across San Gabriel River. This project is already under construction. Phase II. In addition, Hilltop Circuit will be routed along the areas as backup. Funding Source: Ught ($810,000) Account Number: 33-80-000-730-7145/64000A First Quarter Status: Phase 1 contractor installed substructures (conduits and vaults) in place at the end of FY 2000/2001. tine crew installing cable, terminations, junctions, splices, padmounted switches and related equipment as needed. Second Quarter status: Line crew continued to Installing cable, terminations, junctions, splices, padmounted switches and related equipment. New line energized to San Gabriel Canyon Road. Allowing for service to homes at Azusa Ridge and line extension and service to new homes at Mountain Cove. Main line also being extended new water pump wells # 11 and 12 Third Quarter status: Main line extension (loop) to new water wells # 11 and 12 at spreading grounds continuing. Fourth Quarter Status: Year End Disposition: Schedule: Phase II to be carried over to FY/2002/2003 Notes: r CITY OF AZUSA FY2002 WORKPLAN Project Name: Rodcvale booster upgrade upgrade Division: Water TPam I Paler/Memhem: Cher F. Anrlercnn. P.F.. Brief Description of Project: Installation of new pump and piping to enhance the performance of the Rodcvale boosters.. Funding Source: Water Fund Account Number: 32-80-000-721-71/72101C First Quarter Status: Second Quarter Status: Third Quarter status: The improvements that are required will be determined. A plan of the repairs that are required will be prepared and bid documents will be prepared. Fourth Quarter status: This project has been put on hold pending finalization of the Monrovia Nursery Specific Plan and the Azusa Pacific University General Plan. Either or both of the plans may require the Rockvale Boosters to be relocated Year end Disposition: Improvement plans are on hold indefinitely. Schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Distribution Main Upgrades Division: Water Team I Padnr/MamhPM: Chrr F. And,rann. P.F.. Brief Description of Project: Replacement of water mains in the distribution system. Combined budgets for 2002 and rollover from 2001. Funding Source: Water Fund Account Number: 32-80-000-721-7145n23 10 1 K & n2102G First Quarter Status: Second Quarter status: Plans were prepared and the project put out to bid. Bids were accepted. Third Quarter status: The contract was awarded to Simich Construction by the Board. Construction has begun. Fourth Quarter status: Construction will be completed by the end of August, 2002 and the project accepted on completion. Year end Disposition: Project complete by the end of the 2002 fiscal year. Schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: 30 -incl pipeline in Dalton from Sierra Madre to 5th Division: Water Tram I eadrr/MPmhPm7 Cher F. Andemnn. P. F. Brief Description of Project: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Funding Source: Water Fund Account Number: 32-80-000-721-71172102B First Quarter Status: Second Quarter status: Request For Proposals prepared for selection of an engineering consultant to prepare plans and specs for the project. Third Quarter status: A consultant was selected and approved by the Board after the proposals were received. Design and preparation of plans and specs then began. Fourth Quarter status: Design and spec preparation are approximately 75% complete. Design completion is anticipated in the first quarter of fiscal year 2003 Year end Disposition: Design in progress. Construction will be bid in the first quarter of FY 2003. Schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Well 2 &3 discharge upgrade Division: Water Tram I Paler/MPmhP .: Cher F. Andrrann. P.F.. Brief Description of Project: Installation of piping to enhance the flow out of wells 2 & 3. Funding Source: Water Fund Account Number: 32-8000-721-71l72101N First Quarter Status: Second Quarter Status: Third Quarter status: The piping changes that are required will be determined. Construction plans will be prepared. Fourth Quarter status: Design and Construction of this project has been postponed due to pending construction of the Northern Transmission Main. Part of the Northern Main project will address the upgrades; once the Northern Main is placed in service, new operating conditions will dictate the upgrades necessary for well 2 & 3. Year end Disposition: On hold pending completion of Northern Transmission Main Schedule Notes: r CITY OF AZUSA FY2002 WORKPLAN Project Name: Purchase replacement vehicles Division: Water Team Leader/Members: Chet F. Anderson, P.E. Brief Description of Project: Replace vehicles that have reached an advanced age and advanced state of wear. Funding Source: Water Fund Account Number: 32-80-000-721-71/72 10 1H First Quarter Status Second Quarter status: The Water Division vehicles to determine which vehicles will be replaced were surveyed. Third Quarter status: Proposals from State approved suppliers will be obtained for the vehicles determined to warrant replacement and presented for Board approval. Orders will be placed with dealers. Fourth Quarter status: Manager's Vehicle delivered. The field trucks are still in the process of being purchased. Year End Disposition: Schedule Notes: This budget item has been carried over from 2001. CITY OF AZUSA FY2002 WORKPLAN Project Name: Spreading ground wells e. : Division: Water Team 1 ender/MemhPm: Chrt F. An&rcnn. P.R. Brief Description of Project: Installation of two wells in partnership with the County to enhance the County's ability to sluice the accumulated debris from Moms and San Gabriel Dams. Funding Source: Water Fund Account Number: 32-80-000-721-71172101P First Quarter status: Project is underway and is scheduled for completion in September. Second Quarter status: Project is delayed by the reluctance of the City of Pasadena to grant an easement that is crucial to the project. Third Quarter status: The General Contractor will be released from the project and the wells put on line. The pipeline subcontractor will be kept on contract to complete the portion of the pipeline across the Pasadena property. Fourth Quarter status: The project has not been completed. After an appraisal was forwarded to Pasadena an offer was made to Pasadena for the property needed. So far, the property has not been acquired. Year end Disposition: Awaiting the sale and purchase of the pipeline alignment property. Schedule Notes: r V CITY OF AZUSA FY2002 WORKPLAN Project Name: Rehabilitation of South Reservoir Division: Water Team I Bader/Memhers: Chet F. Andercnn. PT - Brief Description of Project: 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. Funding Source: Water Fund Account Number: 32-80-000-721-71/72102C First Quarter Status: Second Quarter status: A Request For Proposals for selection of an engineering consultant to analyze the capability of the structure to meet current seismic codes and design a retrofit to the reservoir if it does meet current codes will be sent out. Third Quarter status: Proposals were accepted and a consultant was selected to do the analysis following Board approval. However, due to the consultant's lack of responsiveness a contract was not consummated. Fourth Quarter status: The reservoir analysis has been put on hold due to the lack of rainfall this year and ongoing high water demand. Year end Disposition: South Reservoir repairs on hold until favorable (rainy) weather begins. Schedule Notes: Budgeted with Sierra Madre Reservoir improvements. CITY OF AZUSA FY2002 WORKPLAN Project Name: Repairs to Sierra Madre Reservoir Division: Water Team I wader/Memhrrs: Cher F. Anderson. P.F. Brief Description of Project: Sierra Madre Reservoir is in need of repairs to the inside and outside of the reservoir. Funding Source: Water Fund Account Number: 32-8"00-721-71/72102C First Quarter Status: Second Quarter status: It was not possible to drain the Sierra Madre Reservoir due to the lack of rainfall this year and ongoing high water demand. Third Quarter status: The inspection and repair of the Reservoir on hold until the rainy season. Fourth Quarter Status: On hold. Year end Disposition: Sierra Madre Reservoir repairs on hold until favorable (rainy) weather begins. Schedule Notes: Budgeted with South Reservoir improvements. CITY OF AZUSA FY2002 WORKPLAN Project Name: Install radio controls for SCADA Division: Water Team I PaderlMemhem: Chet F. Andemnn. P.E. Brief Description of Project: Installation of radio controls for the water system SCADA control system. Funding Source: Water Fund Account Number: 32-80--000-721-7in2101G First Quarter status: Proposal requested from the SCADA consultant and supplier to furnish SCADA equipment. Second Quarter status: Contract with the SCADA supplier was signed Third Quarter status: Delivery of the SCADA equipment accepted. Installation of equipment begun. Fourth Quarter status: Installation of SCADA equipment still in process. Year end Disposition: Installation of SCADA equipment will be completed in the first quarter of FY 2003. Schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Pi line from Citrus & Foothill to Barranca & Alosta Brief Description of Project: Installation of pipeline recommended by the Year 2000 Water system Master Plan Update. Funding source: Water Fund Account Number: 32-8"00-721-7 imioiB First Quarter status: - Second Quarter status: Request For Proposals prepared for selection of an engineering consultant to prepare plans and specs for the project. Third Quarter status: A consultant was selected and approved by the Board after the proposals were received. Design and preparation of plans and specs then began. Fourth Quarter status: Design and spec preparation are approximately 75% complete. Design completion is anticipated in the first quarter of fiscal year 2003. Year End Disposition: Design in progress. Construction will be bid following completion of the plans and specs in the first quarter of FY 2003. Schedule Notes: r CITY OF AZUSA FY2002 WORKPLAN Project Name: 1MG Mountain Cove Reservoir Division: Water TPam 1 Paf1Pr/MPmhPm! Chef F. And,... P.F.. Brief Description of Project: Installation of a reservoir at the Mountain Cove development. Funding source: Water Fund Account Number: 32-80-400-721-702101E First Quarter status: Reservoir under design. Project scheduled by developer to begin construction in Quarter 2 Second Quarter status: Contractor selected and material approval process begun. Third Quarter status: Construction of reservoir and appurtenances has begun. Fourth Quarter status: Construction of reservoir and appurtenances will be completed by the end of Fourth quarter. Reservoir will be placed in operation when the City formally accepts the Mountain Cove water facilities. Year End Disposition: Construction of reservoir and appurtenances complete. Schedule Notes: Reservoir funded by developer with project end participation by Azusa. CITY OF AZUSA FY2002 WORKPLAN Project Name: Ph 1 Heck Booster Pump Station Division: Water Team I PadxlMemhpm! Cher F. nnderann. P.F.. Brief Description of Project: Installation of a booster pump station to boost water to the reservoir at the Mountain Cove development Funding Source: Water Fund Account Number: 32.80-000-721.71 n2101M First Quarter status: Booster station under design. Project scheduled by developer to begin construction in Quarter 2 Second Quarter status: Contractor selected and material approval process begun. Third Quarter status: Construction of booster station and appurtenances will begin. Fourth Quarter status: Construction of booster station and appurtenances has been completed. Booster station will be placed in operation when City formally accepts the Mountain Cove water facilities. Year End Disposition: Construction of booster station and appurtenances has been completed. Schedule Notes: Booster station funded by developer with project end participation by Azusa. CITY OF AZUSA FY2002 WORKPLAN Project Name: 12 -inch pipeline in 6'" St.- Virginia to Cerritos Av. Division: Water Team I eadar1MPmhPm* Char F. AnArrsnn. P.F.- Brief Description of Project: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Funding Source: Water Fund Account Number: 32-80-100-721-71172102D First Quarter Status: Second Quarter status:: Request For Proposals prepared for selection of an engineering consultant to prepare plans and specs for the project. Third Quarter status: A consultant was selected and approved by the Board after the proposals were received. Design and preparation of plans and specs then began. Fourth Quarter status: Design and spec preparation are approximately 75% complete. Design completion is anticipated in the first quarter of fiscal year 2003. Note: Typo corrected in Project name from prior submittal. Year end Disposition: Design in progress. Construction will be bid following completion of the plans and specs in the first quarter of FY 2003. Schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: 20 -inch pipe installation- Lakeview Terrace to IOP Stand Rockvale Boosters Division: Water Team I eadP..r/MemhPm! Chef F. Andrrcnn. P.P. Brief Description of Project: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Funding Source: Water Fund Account Number: 32-80-000-721-71172102H First Quarter Status: Second Quarter status: Request For Proposals prepared for selection of an engineering consultant to prepare plans and specs for the project. Third Quarter status: A consultant was selected and approved by the Board after the proposals were received. Design and preparation of plans and specs then began. Fourth Quarter status: Design and spec preparation has bee placed on hold until Monrovia Nursery releases information on the alignment the pipeline is to take. Design completion is anticipated in the second quarter of fiscal year 2003 Year Find Disposition: Design project on hold pending information concerning the pipeline alignment. Schedule Notes: 20 -Inch water line is consolidated from two pipelines recommended by the Water Master Plan but seemed to be redundant CITY OF AZUSA FY2002 WORKPLAN Project Name: 20 -inch and 16 -inch pipeline for Mountain Cove Division: Water - Tedm I wader/Memhp.m' Chet F. Ands .n. P.E. Brief Description of Project: Installation of pipeline required to service the Mountain Cove Project from the Heck Reservoir Booster Pump Station to the new Reservoir at Mountain Cove . Funding Source: Water Fund Account Number: 32-80-000.721-71/72101L First Quarter status: Under construction by developer. Second Quarter status: Under construction by developer. Third Quarter status: Installation of main from Booster Station to Reservoir site complete. Fourth Quarter status: Booster pump station and reservoir are connected to the pipeline. Pump station and reservoir will be placed in service following acceptance by the City. Pipelines have been placed in operation Year end Disposition: Pipeline is complete and in operation. Formal acceptance will be made in the first quarter of FY 2003. Schedule Notes: Pipeline funded by developer with project end participation by Azusa. CITY OF AZUSA FY2002 WORKPLAN Project Name: 16 -inch pipeline in Baseline from Rockvale to Citrus Division: Water Team I eaderlMemtlers: Chat F. Anderton. P.V. Brief Description of Project: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Funding Source: Water Fund Account Number: 32-80-000-721-71 n2102E First Quarter Status: Second Quarter Status: Request For Proposals prepared for selection of an engineering consultant to prepare plans and specs for the project. Third Quarter status: A consultant was selected and approved by the Board after the proposals were received. Design and preparation of plans and specs then began. Fourth Quarter status: Design and Spec preparation are approximately 75% complete. Design completion is anticipated in the first quarter of fiscal year 2003 Year end Disposition: Design in progress. Construction will be bid following expiration of a City of Azusa pavement cut moratorium. Schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Telecommunications Division: Administration L&W Team Leader/Members: Cary Kalscheuer/Federico Langit Brief Description of Project: 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. Funding Source: Electric Retained Earnings Account Number: 33-40-739-230-6340 First Quarter Status: No action taken. Second Quarter Status: Staff attended APPA telecommunications conference in Seattle in October, and began assembling and reviewing information about our dark fiber network, its potential uses, and how to conduct a fiber optic enterprise business case study. Staff have begun development of an RFP to retain a consultant to conduct a study. Third Quarter Status: Received authorization from Utility Board to develop and release a RFP for Telecommunications Feasibility Study. Developed and released RFP, and host a pre -proposal meeting on scope of work for consultants. Formed an inter -departmental Telecom Proposal Review Team. Fourth Quarter Status: Received ten proposals, reviewed them, and selected four firms to be interviewed. Conducted interviews on June 19, 2002, and decided to recommend R.W. Beck to Utility Board. Year End Disposition: Reviewed budget for project, and negotiated changes to R.W. Beck's proposal to reduce cost by about $20,000 bringing it more in line with average cost proposal from 10 fines. Schedule: Approval of consultant proposal and budget amendment expected by late July 2002. Notice to proceed expected to be issued mid to late August 2002. Project schedule calls for completion in about 6 months, by about February 2003. Staff anticipate presenting to Utility Board the study results no later than June 2003. Notes: We have received calls from a number of other cities about the scope of work for this study: Vernon, Pasadena and Anaheim. The scope of work is comprehensive and progressive, and parallels the latest thinking you might find reflected in seminars on this subject. CITY OF AZUSA FY2002 WORKPLAN Project Name: Green Waste Barrel Distribution Program Division: Waste Management Team Leader/Members: Cary Kalscheuer Brief Description of Project: 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. Funding Source: AB 939 Fund Account Number: 28-40-150-065-4450 First Quarter Status: Established collection mechanisms for AB 939 fee, i.e., via Athens Services and through utility billing system, and set up accounting procedures to track funding separately from general refuse service charges and franchise fees. Second Quarter Status: No action taken. Third Quarter Status: Reported fund balance to City Council and developed some program parameters with the City Council on barrel distribution program. Fourth Quarter Status: Reviewed residential unit counts using barrels to dispose of `yard" waste. Developed bid package for purchase of 6,400 yard waste barrels, went out to bid, and awarded bid to Toter on June 24, 2002. Council approved of budget amendment. Requested budget amendment and PO from Finance Department. Year End Disposition: Preparing for purchase and distribution of barrels. Also developing graphic to affix to barrels. Schedule: Expect barrel distribution within 120 days of issuance of PO (Received PO on July 29 from Finance Department). We requested delivery ASAP upon issuance of PO. Expect to begin receiving barrel shipments in mid October in time for fall season. Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: City Facilities Energy Audit/Energy Efficiency Retrofits Division: Administration Team Leader/Members: Cary Kalscheuer Brief Description of Project: Conduct an energy audit of City Facilities using consultant. Develop recommendations on energy efficiency improvements. Implement recommendations via retrofits, or by installation of new equipment or fixtures. Funding Source: Public Benefit Program Fund Account Number: 2440-739-0826625 First Quarter Status: Completed Preliminary Energy Assessment for all City facilities using services of Planergy Intemational. Prioritized potential projects into tiers, which represented those that were the most cost effective for City to undertake. Second Quarter Status: Directed Planergy International to complete their comprehensive energy assessment based on priority projects identified by the City; comprehensive assessment will identify equipment and fixtures to be replaced and provide cost estimates. Staff began researching outside funding sources for renewable projects. Third Quarter Status: Directed Planergy to develop specifications and obtain firm pricing from contractors. Engaged in legislative advocacy efforts to reverse pending CPUC decision to make outside funding available for renewable energy projects undertaken by municipal utilities; we believe funding is now available. Fourth Quarter Status: Cancelled Planergys involvement in project based on performance and cost concerns. Engaged Mike Lorusso to manage retrofit work. Awarded contract to ALP Heating and Air Conditioning on May 28, 2002 for replacement of 25 HVAC units. Began process of soliciting bids on lighting retrofits in June via informal bid process. Year End Disposition: HVAC retrofit work in progress. Obtained three quotes on lighting retrofit work, and approved proposal by California Retrofit, Inc. Work by them has begun. Schedule: Hoping to complete HVAC retrofits by mid August 2002; lighting retrofits should be completed by end of September 2002. If we have time, we may put in solar water heating system for Senior Center. Notes: Having Mike Lorusso on site to manage contractors and work off hours has worked very well. It has resulted in better coordination with contractor of work, and less of an impact on staff. Issuing our own bid package rather than having consultant do this, has reduced costs and resulted in city getting better equipment. CITY OF AZUSA FY2002 WORKPLAN Project Name: Work Order System Review Division: Electric Operations Team Leader/Members: (See below"*" under "Notes") Brief Description of Project: 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. fnr hillina and arrnuntino numnses. Funding Source: N/A I Account Number: N/A First Quarter Status: Review began in last quarter of FY 2001-02. Second Quarter Status: Review began in last quarter of FY 2001-02. Third Quarter Status: Review began in last quarter of FY 2001-02. Fourth Quarter Status: Staff from Engineering and Electric Divisions met to map out existing work Flow process. Over 50 tasks were identified and put into a matrix, which describe the'who, what, when, where, how and why's" of the work order process. This process is being reviewed for its efficiency, and areas of concern are being examined. Year End Disposition: More meetings are expected amongst department staff. staff from other departments, i.e., Finance Department, will likely be contacted and brought into this discussion. Schedule: No schedule has been put together for this review process. It is being done as time permits. Notes: There do appear to be opportunities to streamline this process and make it more efficient. Some changes to the manual way of doing things may be needed before the process can be automated. A cross functional team will likely be necessary to bring about necessary changes. We are working in this direction. * Team Members include Cary Kalscheuer, Dave Ramirez, Federico Langit, Dan Kjar, Hien Vuoung, and Liza Cawte. CITY OF AZUSA FY2002 WORKPLAN Project Name: MRF Program Division: Waste Management Team Leader/Members: Cary Kalscheuer Brief Description of Project: Process all solid waste collected in Azusa through Athens Services Material Recovery Facility or MRF to divert 13,000 tons annually. Funding Source: Refuse Rate Account Number: 10-40-750-000-4722 First Quarter Status: 3,334.18 tons were diverted via MRF processing and incineration for quarter ending Sept 30, 2001; incineration portion was 1,522.09 tons. Diversion exceeds performance targets set in contract. Athens Services requested 6.6% rate increase to compensate them for extraordinary cost increases. Second Quarter Status: 3,258.9 tons were diverted via MRF processing and incineration for quarter ending Dec 31, 2001; incineration portion was 1,406.06 tons. City responded to Athens Services rate increase request, effectively denying rate increase request; Athens Services was provided option to re -submit their rate adjustment request, but under specified conditions. There has not been anv indication thus far that Athens will resubmit. Third Quarter Status: 3,173.98 tons were diverted via MRF processing and incineration for quarter ending Mar 31, 2002; incineration portion was 783.31 tons, according to Athens' quarterly report. Fourth Quarter Status: 3,498.44 tons were diverted via MRF processing and incineration for quarter ending June 30, 2002; incineration portion was 783.31 tons, according to Athens' quarterly report. Year End Disposition: 13,265.5 tons were diverted via MRF processing, according to Athens' disposal reports. Some discrepancy was noted in attempts to recondle Athens'reported tonnage with tonnage reported by the to County Sanitation Districts. Athens has been requested to reconcile the differences. Also, staff is pursuing an audit of Athens' reported tonnage, in that it increased more than expected. Schedule: Ongoing. Notes: Prior quarterly update included tons from green waste collection program as part of tons diverted, as this tonnage is included in Athens' MRF diversion reports. This tonnage has been deducted from the amounts reported above. CITY OF AZUSA FY2002 WORKPLAN Project Name: Used Oil Recycling Block Grant Program Division: Waste Management Team Leader/Members: Cary Kalscheuer Brief Description of Project: Supply used oil recycling drain pans to State Certified Used Oil Collection Centers in Azusa. Promote use of these centers by residents through advertising. Funding Source: State block grant funds. Account Number: 28-40-750-062-4546 First Quarter Status: 4,179 gallons of used oil collected by 8 used oil collection centers; 95 used oil drain pans distributed by centers; 48 drain pan distributed by staff at Golden Days; advertisement designed and run 6 times over three months in Highland Newspaper. Grant funds applied for and received for this fiscal year. Second Quarter Status: 3,378 gallons of used oil collected by 8 centers; 116 used oil drain pans distributed by centers; advertisement designed and run 6 times over three months in Highland Newspaper. Distribution of drain pans increased by 22% as a result of advertising. Third Quarter Status: 3,752 gallons of used oil collected by 6 centers; 97 used oil drain pans distributed by centers; advertisement designed and run 1 time over two months in Highland Newspaper. Fourth Quarter Status: 2,925 gallons of used oil collected by 6 centers; 74 used oil drain pans distributed by centers; advertisement designed and run 5 times over two months in Highland Newspaper. Year End Disposition: Program continues on ongoing basis. Schedule: Report due to California Integrated Waste Management Board by August 15, 2002. Notes: r CITY OF AZUSA FY2002 WORKPLAN Project Name: Water Wise Gardening, Composting and Grass Recycling Workshops Division: Waste Management Team Leader/Members: Cary Kalscheuer Brief Description of Project: Host in partnership with Los Angeles County 3 or 4 workshops on water wise gardening, composting and grass recycling. Purchase about 125 backyard compost bins and provide the bins free to residents that attend the workshops. Funding Source: AB 939 Fee Account Number: 28-40-750-065-4450 First Quarter Status: N/A Second Quarter Status: Program concept approved by Utility Board on November 26, 2001. We began process of identifying workshop locations and scheduling workshops at City facilities, two at Library and one at Memorial Park. Third Quarter status: Purchased 78 compost bins and stored them at Water Yard on Gladstone. Prepared flyer and had printed to mail in utility bill, announcing workshops on May 4, June 8, and July 13. Fourth Quarter Status: Mailed flyers in April utility bills. Wrote newsletter article for Azusa Tomorrow which was mailed to residents in June, which announced July workshop. 76 residents attended workshop on May 4 and 54 compost bins were given away; 36 residents attended on June 8 and 24 compost bins were given away. Ran out of compost bins. Year End Disposition: One workshop remained—on Juty 13. Bin count was difficult to gauge as many of those that signed up in advance did not show up; many walked in without advanced registration. We decided to host last workshop and then place one bin order to meet needs. 30 residents attended last workshop in July of 2002; and bin order was placed following this workshop to provide free compost bins to those that attended, as well as some that attended prior workshops but did not get compost bin. Schedule: Notes: Several people made favorable comments after the workshops and suggested that the program be continued next year. One City staff person at Library workshops was not enough to ac4ommodate people who wanted compost bins. CITY OF AZUSA FY2002 WORKPLAN Project Name: Dump that Junk Month Division: Waste Management Team Leader/Members: (See below "*" under "Notes') Brief Description of Project: 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 household hazardous waste; and cleaning out city facility offices. Funding Source: AB 939 Fund Account Number: First Quarter Status: No action taken. Second Quarter Status: No action taken. Third Quarter Status: Rick formed a cross-fundional team to plan and implement various activities: cleaning out city offices; free bulky waste disposal; hauling away old cars; cleaning of alleys; planting of street trees; landscape maintenance activities; household hazardous waste drop off; no permit for yard sales. Fourth Quarter Status: Several activities were Implemented. See "Notes" below. Year End Disposition: Preparing to promote similar services next year. Schedule: Annually, in April. Notes: *=Following participated in planning and implementing activities: Rids Cole, Cary Kalscheuer, Bill Nakasone, Karen Vanca, Martin Quiroz, Tina Cravens, Dave Rudisel, and Jeff Reed. 3.5 tons of waste was disposed from city facilities; 250 tons bulky of waste was disposed by residents; 11 junk cars towed away; dozens of mattresses, couches and chairs picked up out of alleys; volunteers from APU helped paint and dean -up landscaping; 250 residents discarded household hazardous waste at Onyx; over 100 yard sales were held. CITY OF AZUSA FY2002 WORKPLAN Project Name: DOC Beverage Container Recycling Program Division: Waste Management Team Leader/Members: Cary Kalsc heuer Brief Description of Project: 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. Funding Source: State Grant Account Number: 28-40-750-064.4540 First Quarter Status: City received shipment of 3 containers in June 2001. A decal was designed featuring a male and female "Recycling Raider' and affixed to the containers. Decal also referred to containers as "Module Azusa Recycling Station, or MARS -1." Bin compartments were labeled for appropriate commodities and readied for distribution. Second Quarter Status: An application packet and recycling contest for schools was developed. The application and contest concept was approved by the Utility Board and a letter was mailed to School Board President announcing availability of containers and contest. Third Quarter Status: Letter and application were circulated by School District Administration to Principals. Three schools agreed to participate in program, however, legal review postponed approval of acceptance agreement by District Recycling by schools commence in March and allowed for 30 days of recycling during contest period. ' Fourth Quarter Status: In April, Powell won third place, Mt. Yew won second place and Gladstone Elementary won first place for recycling the most materials; school representatives were provided with checks from City for $100, $200 and $400, respectively. Program continued until school was out for summer. Year End Disposition: Bin usage expected to continue. The location of the schools was put into a brochure that was mail to all residents and businesses and will likely lead to more recycling activity during next school year. Schedule: Recycling Contest period from January through March with award in April 2002. Final approval of agreement expected by School District by late February 2002. Notes: This program took much more staff time than anticipated. Currently, about $40,000 is available for promotion of beverage container recycling, however, the program needs to be broadened to include other activities. Some of this work may be assigned to Administrative Technician when this position is filled. Also, a portion of these funds can be used to pay for this position. CITY OF AZUSA FY2002 WORKPLAN Project Name: Library Communications Committee Divslon: Public Information Tram I radar/Mrmhrrs[ Tovar. 01 [irn7 and VPF Brief Description of Project: The committee's goal is develop a strategic three-year marketing and communications plan for the purpose of promoting a positive image of the library, communicate updates about the California Bonds to build a new library Funding Source: Library and Communications budgets Account Number: - First Quarter Status: Second Quarter Status: Third Quarter Status: Fourth Quarter Status: Set goals for first year. We will formulate a comprehensive communication plan to identify measurable outcomes and success indicators, which include: services to teens and children, literacy and reading programs. Promoting Azusa Authors Series beginning with Gary Soto this August. Year End Disposition: On-going for the next three years until new library is built. Schedule: We meet twice monthly Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Posadas Division: Communications Tram I rarirr11VlrmhPm* VPF fVale.nrlal. (h firm. (ravrnc Brief Description of Project: Establish a Christmas -time tradition of Posadas in Azusa. Posadas is the re-enactment of Mary and Joseph seeking lodging to provide Mary with a place to give birth to Jesus Christ. Posadas has it roots in medieval European history, which has since flourished in some Latin American countries. In the US, Posada events in San Antonia, TX, San Juan Bautista, CA and other southwest cities, have become destination events luring thousands of visitors to nhSP.NP. the.. rich tanr.4ry of th15 nllhlral tradlhnn. Funding Source: Administration and Communications Account Number: First Quarter Status: NA Second Quarter status:NA Third Quarter Status:NA Fourth Quarter Status: We have begun to dialog with interested parties, which include, Azusa PD, Chamber of Commerce, DBA, Azusa Rec and Parks, Public Works and Administration. Year End Disposition: Schedule On-going meeting schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Economic Development Plan Division: Redevelopment I (Team Leader/Members: J. Anikews/M.QuirozNPES Ltd. rle_c,_•,dphon of GrnjM• Develop colateral; and an economic development media and c bfldh, plan ud H. wJl highlight the light industrial project at 10th and Todd and the Mountain Cove Development, Block 36 and the foothill center project. The purpose of the plan is to generate positive publicity in local and regional media to attract businesses into the Todd development, the renovated Block 36 and homebuyers to the Mountain Cove development. Funding Source: Public Information and Budget Account Number: 3110130000662 First Quarter Status: Second Quarter Status: Third Quarter Status: This plan was originally scheduled to start in January. However, due to the fire bombing incident of early December it was delayed. We have begun to develop the plan and implementation is scheduled for February. Fourth Quarter Status: The plan which begun late this quarter has resulted in very positive media for Block 36, Mountain Cove, the Todd Light Industrial and assignment of redevelopment zones for code enforcement measures to "clean-up" run down apartments in the area. Year End Disposition: Publicity and communications projects on-going. Schedule Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Azusa Today Division: Communications/N Team I eaAer/Mrmhersf Ouim7/PPr n Brief Description of Project: Write, produce and edit a 40 -minute show on current projects and events taking place in the city. The show is taped and edited at Charter Communications in Pasadena and placed on schedule and aired on Azusa's government TV station. Robert Person is the host of the show. Funding Source: Public Information Budget Account Number: 3110130000662 First Quarter Status: The first ever show was on Library Bond Measure' L" It featured the Mayor and library architect, Armando Morales. Second Quarter Status: Several other shows this quarter were: The City's Economic Development plan, New Residential, Light Industrial development, Third Quarter Status: The focus for this quarter was: AUSD School Bond Measure, Human Relations Commission and Community Policing Program Fourth Quarter Status: Shows were: The River Projects, Block 36 and Downtown Business Association Year End Disposition Schedule: This project is usually on time and under budget as the studio's and engineering time is done as a public service to us. The only area that they cannot yet underwrite is editing. Notes: r CITY OF AZUSA FY2002 WORKPLAN Project Name: Azusa Tomorrow Division: Communications/Newsletter Team I eader1Memherc[ Mlloirnz. Brief Description of Project: Write, photograph and layout the monthly Azusa newsletter that get distributed with the monthly Azusa utility bill. Funding Source: Public Information Budget Account Number: 3110130000662 First Quarter Status: On schedule Second Quarter Status: On schedule Third Quarter Status: On schedule Fourth Quarter Status: On schedule Year End Disposition: This monthly project is on going, on budget and on schedule. Schedule: Monthly Notes: CITY OF AZUSA FY2002 WORKPLAN Project Name: Azusa Advantage Division: City Management Tram I radar/M>mharc C:nle. Prmnn. Clnirnz._ and Brief Description of Project: Program consists of a weekly meeting to proactively plan strategies on marketing, branding, publicity on current events and projects undertaken by city departments. Synergy with Azusa Unified School District on current projects is a large part of these meetings. Whenever possible media opportunities are targeted and pursued for their positive impact on Azusa, its employees, the City Council, partnerships, businesses, and sphere of influence. Funding Source: Communications Budget Account Number: 3110130000662 First Quarter Status: Second Quarter Status: Third Quarter Status: Fourth Quarter Status: Returning to normal after the tragic fire bombing events. We have concentrated our focus on formulating a comprehensive economic development plan which highlights our efforts to build and attract light industrial to the west end, new home buyers to Mountain Cove and our SG River efforts. Year End Disposition: On-going. Schedule: The meeting is on-going every Monday in the City Manager's office. Notes: RESOURCE PLANNING DIVISION CY 2002 PROJECTS, GOALS AND OBJECTIVES (Updated Aug 20, 2002) The following is an update of the goals, objectives and planned projects for calendar year 2002. The goals, objectives and the planned projects have been evaluated and will continue to be evaluated on an ongoing basis to reflect the current regulatory and market environment. Unless otherwise stated, the outlined projects have equal weight. PROJECT 1: RESOURCE PLANNING ACTIVITIES As the department continues to strive to provide cost effective electric power to Azusa's customers, the following activities have been undertaken: A. San Juan Unit #3 Performance Mitigation INITIAL PLAN: 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 UPDATE. In early 2002 staff initiated contact with two utilities located in New Mexico to explore the possibility of San Juan assignment arrangements. One utility, County of Los Alamos Utilities Department, expressed interest in an assignment proposal made by staff. It is anticipated that next month (September 2002), both utilities will enter into exclusive negotiations for the proposed assignment TIMELINE: ONGOING B. SUMMER PEAKING RESOURCES (SUPPLY AND DEMAND SIDE OPTIONS) INITIAL PLAN: As contracts with the city of Pasadena and BPA for peaking power expire at the end of 2002 and 2003 respectively, the department will need to develop strategies to fill its summer peaking needs through new power contracts, ownership of generating assets, and/or demand side load management programs. At this time it appears that options through new power contracts and load management programs provide the most flexibility to manage city's peaking requirements. UPDATE. Staff proceeded in procuring a 15 MW 4 year summer peak productfrom (June -September 2004-2007). Staff received bids from several counterparties who had established credit arrangements with the City. The successful counterparty was Duke Energy. TIMELINE: COMPLETED. r C. RENEWABLE ENERGY STRATEGY INITIAL PLAN: 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). UPDATE: Staff has expressed interest in procuring 2 MW of renewable energy through SCPPA. A geothermal project has been selected for further feasibility and technological review. Upon a thorough review of the associated benefits and costs, SCPPA will proceed with such power procurement in union with other interested SCPPA participants. If procured, this resource will diversify Azusa's resource portfolio and serve as a mean to respond to future potential state mandates for renewable energy. TIMELINE: ONGOING PROJECT 2: CREDIT AND RISK MANAGEMENT ACTIVITIES INITIAL PLAN: As the events in the past few months attest, the electric industry is becoming a very risky business. It is imperative that the department revisit its risk management policy to establish consistent and cohesive policies. The activities in this area will encompass the following: A. Review the terms and conditions of existing enabling agreements with third parties and revise or enter into new enabling agreements with terms and conditions that provide the appropriate protection to the city in case of defaults UPDATE: Staff reviewed existing arrangements with third parties and pursued establishing new master power purchase agreements such as EEI (Edison Electric Institute) and the WSPP credit annex. Among the parties the City has new agreements are: Duke Energy Trading, American Electric Power, Idaho Power Company, and UBS Warburg. Among the parties the City is in the process of negotiating new agreements are: Sempra Energy Trading, BP Energy, and Pinnacle West Capital Corporation. TIMELINE: COMPLETED & ONGOINGAS NOTED ABOVE B. Establish a consistent credit policy with respect to third parties. This will require the establishment of credit limit as well as the ongoing monitoring. UPDATE: Staff's completed agreements have established credit limits keeping the City and its counterparties in check. Staff monitors credit limit fluduadons in accordance with future market prices and monitors news and events that may affect counterparties financial strength (i.e.: particular downgrades or upgrades in credit ratings,counterparty mergers -or breakups, dc) Any new agreements with third parties wig also initiate the applicable monitoring. TIMELINE: COMPLETED & ONGOING C. Review and Revise Utility Rate Stabilization Funding Policy to replenish the depletion of RSF TIMELINE: Target to have the revised policy by the end of first quarter 2002 for implementation by rt fiscal year ending June 2002. ZOOZ `9Z lsnbny Tolipw X.1131iloola �iuzo�tjuo jo a�.upd� Overview ❑ Federal Actions ❑ State Actions ❑ Financial Stability of the Market ❑ Spirit of Cooperation and Joint Planning ❑ What does the future hold for us? ❑ What should Azusa do? Federal Actions ❑ FERC is continuing its quest of promoting competitive electricity market ❑ FERC intends to. standardized the market structure throughout the nation ❑ FERC appears to be getting "tougher" in monitoring the market ❑ FERC is enmeshed in many litigious proceedings — fallout of California energy crisis State Actions ❑ Contentious PG&E bankruptcy proceeding ❑ Continues "investigations" of the causes of the energy crisis ❑ Fervor of building electric infrastructure has considerably cooled down ❑ No direction in how to plan for the future ❑ Over reliance in one fuel source — natural gas Financial Stability of the Market ❑ Market is dominated by financially weak market participants ❑ No expectations of near term financial health of the market Spirit of Co-operation and Joint Planning ❑ California pursues California -centric approach in planning ❑ No regional cooperation among the western region states in planning What does the future hold for us? ❑ Higher volatility and unpredictability in supply and demand balance ❑ Higher cost of doing business for traditional utilities ❑ Ultimately, higher costs to consumers What Should Azusa Do? ❑ Maintain the fiscal discipline and strong financial fundamentals of its utility ❑ Continue to plan for the future to serve Azusa's customers ❑ Seek business partners to leverage the strength of each other ❑ Diversify power resources AZUSA UGHT 6 WATER BILLING REPORT April 2002 • Number of A r2002 A r 2002 Number of r2001 0 -0 ea1 YoarDate 0 sA KwhICCF 12001 KwhICCF KwIdCCF Smell business 1 1 122 1089 292 125 853.29 " 1 083 1 1 452 f 135 814.20 13882 188 f1 568 886.50 Medium busineu G-2 275 355157 331932.84 279 8443927 505843.22 gg 974845 5754992.5331 La busltx+as .O.U. 32 23 8 148 4894 53450920 693.72 10 3482 878.42 38232 40003 8387.53 5 750.25 Streethta 23 4597 854.45 25 4085 587.81 Outdoor tab mun I Accounts 147 1822 12088004 1049 308.80 1 573 1208280 8 1087 582.04 132 387 706 E7 S 978 60413 Total Commercial Residential Fuel Cort AdWsImInt 387 418 1805 078.49 14844 18546 337 1 475 408.95 189 029 334 318 777 324.28 Total Electric 15 045 18 '• 28131.40 3283 555.49 28185.39 1 9101 127 215 237 887.39 979 1 8 788 218128.88 71 858.09 1842 979 499 38836 E2 813589.02 Residential Commercial 804 40 204 75 587.83 " 791 140 37 425 50 9 831.37 ' 100,4684.40 Firs Detector Lone 147 0 9 739.98 S1 847.77 220 53 770 7.-1; 431 809 143 �'�' Industrial 221 328 8189 9835.84 110 399 7 743.46 105 427 124 314.97 Munkl 1 AecouMs 127 OoII Course 10401 21 S 333 391 025.81 10 241 228189 387 435.54 2 768987 54 883 741.58 Total C Water Azusa Valle Water 7490 219554 5345932.13 , 7458 189881 f285340b1 2615031 987 586 f39S3444.40 1444 53.97 Reshlerdlal Comrtlarciel 880 85847 129849.35 $45 84 737 4 124 504.88 8 078.03 117 61 895.90 FireDetector Lone 124 4 8358.48 121 31 23 865 29 895.70 273 077 354 811.13 Industrial 31 28 70 34 09.73 9 Public 383 328 582 004.91 8 594 303 389 482 398.33 4 315 748 f8424127 .92 Total AV Water 8848 19 048 578 881 953 030.72 '• 18 835 529538 889 833.87 7 082 713 11 107 869.50 CITY/AV WATER TOTAL 2 373 374.22 $30168 749.27 TOTAL ELECTRICNVATER 2388 294.80 g Restden8al 13545 (74827.22 13383 87 003.35 • ' (13881.19 $688794. 154499.89 Commercial 1912 15457.58 1872 221 4998.94 43758.03 IndLotrla1 222 4127.08 Car Wash & Laund88193.12 394 705.94 15487 $890.281.34 Total Sewer 15890 201318.59 13315 199104.19 (2008 03.47 Residential Rubbl8 13492 - CO668 871.63 f33 067 234.08 2 882 317.13 GRAND TOTAL BILLING 1050828 $105,720.60 10611.67 ' Mnt. Assessment -$3349 80 $38127.19 3294.30 ' . State Surcha S9 838.72 (755 818.99 64 448.71 8883 Elec. Usees Tex Water Users Tex 84 82869.34 78022.37 (972 84.52 Total Users Tex 0 R 05,,28K ' 13New�L IeG PM T" AZUSA LIGHT & WATER onaratina Report - April 2002 AZUSA LIGHT d WATER BILLING REPORT May 2002 Number of Ma 2002 Ma 2002 Number of Me 2001 MB e Date al Year A o Bil •• eco n KwhICCF Bill KwhICCF KwN CCF49 1114 1 79 145108.95 102878 f4008?8.39 44859346 $4755838.88 Smell Duslnesa Cr1 Medium business 62 279 3907117 384941.35 4137 8 �3 518089.41 75 56� 8 278 7800 La business .O.U. 32 8655105 519 709.31 '• 10 482 058 32 Street U hb 24 3 827 432.78 880.63 •• 24 4 074 585.70 44 370 8430.88 Outdoor hb 25 4385 4 5 5 Munid I AaouMs 147 1821 12858115 1 J30897.04 1 574 128 381 1 138 003.31 145 45 821 f 15 737 908.78 Tota61.20 l Commercial Residential Fuel Cost Ad ustment 14 883 17 822 825 1581 088.12 208 248 545 $20 478 988.99 Total Electric 15 1 17 19 11 1 701 884.71 28489.94 5311 788.38 28 12.89 I 9121 148109 281 482.80 '� 9AQWA 144 2� 793.38 1547 669 .82 §1 004 533.08 Residential 47 738 88118.00 790 548 48 9988.78 875 110 738.00 Commercial811 Flro Deteot0r Line 148 39 702 10 073.80 87 704.82 141 220 58 759 81 745.58 477 511 711 190.87 195 252.36 Ind 1 221 127 45 10 978 12837.39 110 5 847 71 084.17 118 405 Munkl I Aexounls GOV Couroe 450 372.60 '� 10303 268 750 482 518.39 3031 287 5134114.18 Total CI Water 70 427 284 20 Azusa Vall Water 7477 218703 342278.09 •• 7 2988 $1439 10382 95.72 Residential Commerdal 700 88 228 127 011.59 �7 3 W1.75 5 708.11 '• 120 68 903.81 Fire Detector Line 118 3 7207.91 115 31 31 435 40 817.58 '. 302 262 392 578.57 Industrial 31 29185 37 887.44 3 9 Publk 379 897 578 759.87 8 480 392 547 593 834.48 4695 443 7000887.79 Totai AV Water 8457 844 017 I'll, 18 783 881 297 1058 350.85 7728 730 12135001.97 CITY/AV WATER TOTAL 18884 '• 2 875 908.91 32 925 759.34 TOTAL ELECTRICNVATER 2 757 010.07 13 787 74 709.51 13 528 88 888.13 14-1 .11 3763 504.41 1 199.61 RealdeMlal Cammetl 1 18899.72 471127 1849 221 5149.85 489 Industrial 222 Car Wash & Laund98 431.43 15 810 $87051.17 $988 712.77 Sevier Total Seer 15 908 $198335.53 32209895.12 Residential Rubbish 13739 $201891.65 13418 $2 981 293.87 $38122 387.23 GRAND TOTAL BILLING f3 056133.16 " $10518.91 •• $118335.22 310814.62 MRt Assessments $3604.92 E41 600.38 f3 473.19 •' State Surcha a $64425.01 ••3628 --i8-2-3,445.58 67 828.59 Else. Users Tax Water Users Tet 0.• $86,323.74 .22 $1 061 071.91 $88,787.39 Total Users Tax 02 R,0>,t WJMS� viae ansa aiermue txwv'aa2 AZUSA LIGHT & WATER nnornfinn Renort - Mav 2002 AZUSA LIGHT A WATER BILLING REPORT June 2002 CusWmerTypes Number ofJune Accounts Commotion 2002 KWh/CC June 2002 Billln Number of Accounts ConsymPtIon June 2001 KWhICC June 2001 Bilifna •• 2001-02 Fiscal Year To Date Consumption Billing KwhICCF Electric Small business G-1) Medlum business G-2 La business .O.U. Street Lights Outdoor Lights Municipal Amounts Total Commercial Realdentlal Fuel Cost Adjustment Total Electric 280 32 23 25 147 1,636 1 14 971 3 960 515 7 028 541 3 630 4,125 48 13,439,394 4,697.1115 18,136,510 $162,085.59 392 974.13 535 639.65 416.32 '• 605.45 $1,172,171.86 4 7. 181,218.41 $1,788,462.8 1 088 275 34 10 24 1 1.577 204 14,781 1 388 743 4 281 081 7 417 239 3,482 4,074 842.5 13,917,135 4 2 84 18,43.975 154 126.03 413 380.08 558 333.97 679.36 •' 585.70 68.875.82 1 195 960.96 4 7 6 $1.653.647.641 16 598 779 48,819,856 82 598 491 43,689 48.495 7 9 5 158 685 215 65.699.8401 .224,385,055 $1,874,059.04 4,748,612.81 6,810,541.47 7,216.64 7.036.33 1 866.77 $14 279 333.06 6,172,381.32 1.815,737.44 $22267,451.82 Isc Raven Billln $29,088.58 $28 380.99 •' $340 856.96 sa CltV Wate Residential Commercial Pre Detector Line Industrial Munichmi Accounts Goff Course Total C Water 9138 810 146 222 128 1 10,445 169107 45,761 34 45,063 12,993 12M4 286,262 $287 128.86 84 973.32 " 9,939.50 66 378.90 14 916.50 1260639 $475,941.47 9 017 796 141 2201 1111 14 10.286 168 218 51,259 145 50.726 9,780 290.0751 281 131.84 94o76.30 •' 10 167.18 74 153.61 15 557.01 '• •• $487,337.20 1 791 088 547,119 875 477,511 116,405 9 3 031,2871 S3,07 051.82 1,004,533.08 110 738.00 711,190-67 137,252. 6 34 $5,134,114.18 Azusa Valley Water Residential Commercial Flre Detector Line Industrial Public Authority Total AV Water 7 488 849 125 31 8 633 248 833 99,66 0 36 744 438,801 $375559.03 146 850.55 8 400.01 47 413.78 $649,206.91 7,476 851 122 31 43 8,623 262 885 109,492 3 29 948 57,853 459 981 92 978.18 159 359.95 •• 6.424.49 38 785.15 78,534.41 678 080.16 •: 2.833.7341 1.073.8121 120 302,262 48 .515 4,695,443 $4,295.7 1.571.265.56 68 903.81 392 478.57 672,519.36 $7 000 887.79 CITY/AV WATER TOTAL 19.078 1 125 14A 1481 18,909 750,056 $1.163.417.36 7,726,730 12 135 001.97 TOTAL ELECTRICM/ATER $2,942,699.79 --- $2,843,445.99 $34,743,310.75 sawer Residential Commercial Industrial 13,432 1 893 223 $73,894.32 18 847.09 '• 5,304.04 13,342 1,855 221 $66,176.38 15.5 .18 4,738.27 $763.504.41 171 199.61 48 469.30 Car Wash 6 Laundry Total Sewer 15,559 301.21 $96,346.66 11 15,429 299.11 $86,775.94 3,539.45 $986,712.77 Resldernlal $199,987.95 13,260 $198535.33 $2209895.12 GRANDTOTALBILUNG $3239034.40 :: 5312875726 $37939918.64 Mm. Assessments $10,536.87 $10.448.151 $116.335.221 State Surcharcre 690.83 $3 808.00: $45 291.07 Elsa Users Tex Water U9efe Tex Totalusefs Tex 1 72 215.42 22 $94737.75 67 502.24 ': 2 47 2 '. $89978.18 $895 fi61.00 26 148. $1155809.66 J m R a90Mahe1e 9)ra2 Fln SeMee2m vae ok AZUSA LIGHT & WATER Operating Report -.lune 2001 June 2002 June 2001 FISCAL 01/02 FISCAL 00/01 Customer Statistics 9-3-437 23,262 281 690 279 909 UtilityBills Mailed Reminder Notices Mailed 5,650 6,198 79 356 85 342 Delinquent Tum -Offs 393 362 5 160 582 5 252 1 003 Returned Checks 44 68 251 4,295 3,757 Electric Turn -ons 285 325 292 4,141 4 205 Electric Turn-offs 140 137 1 966 1 632 Water Tum -ons 162 167 1 881 1,874 Water Turn-offs 6,911 6 299 86,818 87,317 Bills Paid In Office 1 1617 1 Bills Paid by Credit Card 311 1 260 1 Bilis Paid by ATM Checking 52 1 536 1 Bilis Paid b E -Z Pa Direct Debit 128 i Meters In Service 14 971 14 781 ---------- Electric 10 445 10 286 Water Azusa Valle Water 8 633 8,623 Total Elec/Water Meters 34 049 33,69 Total Monthly Cash Receipts $3,432,691.29 1 $43 092 077.45 1 Customer Deposit Balance $1,778,899-00 $1 941 968.00 Water Production CCF Total Azusa Water Production 954 006 942,852 9 717,224 9,768,429 Water Sold CCF 286 262 290,075 3,317,549 3,568 910 Water Sold - Ci Water Sold - Azusa Valle Wate 438 801 459 981 5 134 244 5 35,053 8 603 963 Sold 725 063 750,056 8 451 793 Total Water Water Loss 24% 20% 13% 11.9% (1) Com arable info not available rior to 7/1/01 z f:. U&f JAW. MCA+) Monthly Departmental Summary MAY 2000 Kwh 2002 Kwh Avg Daily Monthly Avg Daily Avg Daily Kwh Percent Kwh Dollar Department Use Use Saved Change % Reduced Savings Light & Water 894 518 376 42.1 10895 $991.42 Police Department 2152 2130 22 1.0 640 $58.24 City Hall 1201 1120 81 6.7 2417 $195.76 Library 597 563 34 5.6 927 $84.39 Senior Center 557 463 94 16.9 2640 $240.24 Women's Club 101 67 34 33.3 973 $88.53 Parks & Recreation 1211 1475 -264 -21.8 -8846 -$716.52 Water Maintenace 151 135 17 11.0 548 $49.90 Corporate Yard 217 210 6 3.0 187 $16.99 Transit Department 176 141 36 20.3 127 $110.71 Totals 1 72561 68211 435 6.0 11 5981 $1,119.66 Monthly Departmental Summary JUNE 2000 Kwh 2002 Kwh Avg Daily Monthly Avg Daily Avg Daily Kwh Percent Kwh Dollar Department Use Use Saved Change % Reduced Savings Light & Water 1008 713 296 29.3 7797 $709.54 Police Department 2357 2309 48 2.0 1440 $131.04 City Hall 1227 1225 3 0.2 86 $6.97 Library 674 684 -10 -1.5 -323 -$29.41 Senior Center 632 495 137 21.7 4124 $375.25 Women's Club 104 112 -8 -7.4 -232 -$21.09 Parks & Recreation 1558 1458 100 6.4 2163 $175.17 Water Maintenace 147 174 -27 -18.0 -824 -$75.00 Corporate Yard 224 221 3 1.3 102 $9.26 Transit Department 189 145 44 23.3 1275 $116.03 Totals 1 81221 75351 587 7.2 15607 $1,397.75 Monthly Departmental Summary JULY 2000 Kwh 2002 Kwh Avg Daily Monthly Avg Daily Avg Daily Kwh Percent Kwh Dollar Department Use Use Saved Change % Reduced Savings Light & Water 881 757 124 14.1 3597 $327.36 Police Department 2475 2309 166 6.7 5326 $484.64 City Hall 1141 1175 -34 -2.9 -1428 -$115.69 Library 802 731 71 8.9 2420 $220.22 Senior Center 743 612 130 17.5 4163 $378.81 Women's Club 159 145 13 8.4 440 $40.04 Parks & Recreation 1228 1415 -187 -15.2 -5159 -$417.91 Water Maintenace 181 172 9 4.9 251 $22.82 Corporate Yard 266 209 57 21.4 1596 $145.22 Transit Department 192 181 10 5.3 336 $30.58 Totals 1 80681 77081 3611 4.51 11541 $1,116.09 .y if •.. -K7j: �i lift'J: BOARDS THAT MAKE A DIFFERENCE 0 JOHN CARVER DISCUSSION NOTES FOR AZUSA UTILITY BOARD/CITY COUNCIL r 0 W i - CHAPTER ONE A NEW VISION FOR GOVERNING BOARDS I Type of board -- Profit, Non-profit, and Governmental II Flaw in governmental sector -- where opportunity for leadership is the greatest, job design for leadership is the poorest. III Problems with public governing boards -- is not that a group of individual occasionally slips into poor practices, but that intelligent, caring individuals regularly exhibits procedures of governance that are deeply flawed: such as A. Time on the trivials B. Short-term bias, or focus on short-term or past C. Reactive stance D. Reviewing, rehashing, and redoing E. Leaky accountability F. diffuse authority IV Board as a manager with overview management mentality. However, the governing boards are different from General Managers in the following respects: A. Board to be accountable to themselves B. Acts in moral sense as a legal one C. Melding multiple peer viewpoints and values into a single resolution D. Less disciplined as a group than any one of its members operating alone E. They are part-time and physically removed. V New Governance A. Cradle vision B. Explicitly address fundamental values C. Force on external focus D. Enable an outcome -driven organizing system E. Separate large issues from small ones F. Force forward thinking G. Enable proactivity H. Facilitate diversity I. Describe relationship to relevant constituencies J. Define a common basis for discipline K. Delineate the board's role in common topics . L. Determine what information is needed M. Balance over control and under control N. Use board time efficiently. CHAPTER TWO POLICY AS A LEADERSHIP TOOL In public sector, management has advanced considerably, but the Governance has not -- matured child dealing skillfully with immature parents. The secret of governance lies in policy making. The essence of any organization is what it believes, what it stands for, and what and how it values. Its "works" rather than its "words" are the telling assessment of the beliefs. Leadership through policies -- Policy leadership clarifies, inspires, and sets a tone of discourse that stimulates leadership in followers. Four (4) reasons for policy -focused leadership: A. Leverage and efficiency -- affect many issues with less effort B. Expertise: Find CEO that compliments the board's skill C. Fundamentals : Dealing directly with the fundamentals are certain to address that which has enduring importance D. Vision and Inspiration: Leaders must have vision and inspiration Whether the board wishes to control narrowly or to lead more expansively, governing through policies is the efficient way to operate. Getting a handle on policies: Board are accustomed to dealing with specific decision and with resolving specific problems. They tend to pride themselves on being a decision makers and problem solvers. However, a board governed by policies should ask: "What policies are represented here?" To lead instead of follow, boards must get to the other end of the parade. Categories of Board Policy: A. Ends to be achieved -- What should be the results, how will our being in business effect the world. B. Executive Limitations — Be effective, prudent, and ethical C. The Board -Executive relationship -- Delegation, CEO evaluation t D. The process of governing itself -- Board's job classifications, what principles or ground rules does the board use to discipline the process From: Joe Hsu To: Toscano, Candy Date: 8/28/02 8:52AM Subject: Re: unfinished business Candy: Item III -B was approved with additional language that Jeff will be supplying. The board authorized BBK to enter into a consulting agreement with Abacus Engineering Corp. for a construction contract investigation. The board adjourned at 8:50p.m.. By the way, would you please send me the resident's address where Joe Rocha had concern about tree branches over power line? Thanks. Joe Joe Hsu Azusa Light & Water (626)812-5219 >>> Candy Toscano 08/28/02 07:44AM >>> Hi Joe, Just wanted to know what the status was on Item III -B, (the walk-on) Option Agreement with Los Alamos County, New Mexico? The Board was going to get back to it and they didn't while I was there. Also, was there any action taken with regard to Closed Session, and lastly, what time did you adjourn? Thank you, Candy From: "Jeffry Ferre" <JFFerre@bbklaw.com> To: <ctoscano@ci.azusa.ca.us>, <jhsu@ci.azusa.ca.us> Date: 8/28/02 12:07PM Subject: Re: unfinished business Candy In regard to Item III -B, the Board took action to approve the Option Agreement conditioned upon certain changes whereby the City would agree to not market to any third party during the Option Period. However, the determination of whether to enter into any agreement would be in the discretion of the parties. The particular changes to the Option Agreement I have proposed to Joe are attached. No reportable action was taken in Closed Session. In regard to the time of adjournment, Joe would probably have that information since I left before the end of the meeting (the end of the meeting pertained to the book review). If you need anything further, please let me know. Thank you. Jeffry F. Ferre Best Best & Krieger LLP 3750 University Ave P.O. Box 1028 Riverside, CA 92502 Direct (909) 826-8271 Main (909) 686-1450 Fax (909) 686-3083 >>> "Candy Toscano" <ctoscano@ci.azusa.ca.us> 08/28/02 07:44AM >>> Hi Joe, Just wanted to know what the status was on Item III -B, (the walk-on) Option Agreement with Los Alamos County, New Mexico? The Board was going to get back to it and they didn't while I was there. Also, was there any action taken with regard to Closed Session, and lastly, what time did you adjourn? Thank you, Candy CC: <ckalscheuer@ci.azusa.ca.us> REVISIONS TO OPTION AGREEMENT Section 1.1 should be revised, in its entirety, as follows: 1.1 For a period of sixty (60) days from the effective date of this Option Agreement ("Option Period"), and subject to the limitations of Azusa's contracts with SCPPA involving granting the first right of refusal to other SCPPA members, the County shall have the exclusive right ("Exclusive Right") to determine whether it wishes to acquire two-thirds of Azusa's contractual rights to capacity and energy under the Power Sales Contract, as well as associated power exchange services under the Interconnection Agreement. Such contractual rights and power exchange services would entitle the County to approximately 20 MW of capacity and energy from Azusa's interest in San Juan Unit 3. During the Option Period, Azusa will not sell, convey, or market said contractual rights and power exchange services to any third party. During the Option Period, if the County determines that it wishes to acquire said contractual rights and power exchange services, the Parties may negotiate an agreement ("Agreement") for the purchase and sale of said contractual rights and power exchange services. The extent of negotiations, terms and conditions of any Agreement, and the decision of whether to enter into any such Agreement, shall be subject to the sole discretion of the Parties. Section 1.2 should be revised, in its entirety, as follows: 1.2 In consideration of this Exclusive Right, the County agrees to pay Azusa the amount of $5,000, which will be credited back to County in the event the Parties execute an Agreement. Section 2.1 should be revised, in part, as follows: 2.1 In the event the Parties execute an Agreement, and upon the termination or expiration of the Power Sales Agreement,... Section 3.1 should be revised, in part, as follows: 3.1 In the event the Parties execute an Agreement, Azusa will... Section 4.1 should be revised, in its entirety, as follows: 4.1 In the event the Parties elect to negotiate the terms and conditions of a potential Agreement, the form of a potential Agreement will be based upon the form of the Power Sales Contract that Azusa has executed with SCPPA, subject to such modifications as the Parties may mutually agree. The Parties agree to negotiate the terms of any potential Agreement promptly and in good faith, subject to the sole discretion of the Parties as set forth in this Option Agreement. Section 5.1 should be revised, in part, as follows: 5.1 The Parties agree that in the event the Parties execute an Agreement, the delivery points... Section 6.1 should be revised, in part, as follows: 6.1 In the event the Parties execute an Agreement...