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HomeMy WebLinkAboutAgenda Packet - February 24, 2003 - UBAGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA LIGHT & WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 AZUSA UTILITY BOARD DIANE CHAGNON DICK STANFORD VICE CHAIRPERSON CRISTINA C. MADRID BOARD MEMBER MONDAY, FEBRUARY 24, 2003 6:30 PM . DAVE HARDISON BOARD MEMBER IOSEPH 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 (PersoryGroup shall be allowed to speak without Inteaupdon 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 the speaker has completed his/her comments. Public Participation will be limited to sixty (60) minutes time.) The Consent Calendar adopting the printed recommended action will be enacted with one vote. ff Staff or CoundImembers wish to address any Item on the Consent Calendar Individually, It will be cons/dered under SPECIAL CALL ITEMS. 001 II. CONSENT CALENDAR A. Minutes. Recommendation: Approve minutes of regular meeting of January 29, 2003, as written. II -A. Minutes 1-29-03 B. New Azusa Substation - Prosect Update. Recommendation: Authorize staff to retain services of an independent consulting firm to review Edison's cost of service for connecting new Azusa substation to Edison's 66kV distribution system. H II -B. Sutntaton Rpt III. SCHEDULED ITEMS A. Pro -Forma Wholesale Power. Resource Agreements. Recommendation: Approve following pro - forma power resource agreements and authorize Mayor to execute the agreements: 1. Netting Agreement between Salt River Project (SRP) and Azusa 2. Western System Power Pool (WSPP) Agreement Exhibit A - Netting 3. Arizona Public Service (APS) - Pro -Forma WSPP Transaction Confirmation Agreement III -A. Whsle Power Agrrts Contract with AT&T for New Communications Circuit. Recommendation: Approve contract with AT&T for circuit access needed to connect to the new California Independent System Operator network for a one-time equipment purchase of $4,138.93, an ongoing monthly management and maintenance charge of $180, and a monthly circuit fee of $225.00. H III -B. AT&TCAISO IV. STAFF REPORTS/COMMUNICATIONS A. Power Resources Division Monthly Report E 01 91 -13 91 IV -A. PowerRes Moy IV -A-1. Pwr Res IV -A-2. Map and IV -A-3. Oversight W -A-4. ISO Update Strategy 2003 Diagrans ProhwDI Penalties 002 B. HP 3000 / Customer Information System Replacement Process E IV -B. CIS Process C. Update on U.S. Forest Service Interpretative Center V. DIRECTORS' COMMENTS A. Chairwoman Chagnon: Formation of Subcommittee to formulate a Development Agreement for Monrovia Nursery Project. VI. CLOSED SESSION A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.8 Property: 1020 W. 10"' Street, Azusa, CA 91702 City Negotiator: Joe Hsu, Director of Utilities Negotiating Parties: Net Development Co. Vil. ADIOURNMENT A. Adjournment. "In compliance with the Americans with Disabilities Act, Ifyou need special assistance to participate In a city meeting, please contact the City Clerk at 626-812-5229. Nodfication three (3) working days prior to the meeting of time when special services are needed will assist staff In assuring that reasonable arrangements can he made to provide access to the meeting." 003 REGISTRATION FORM please complete the following: Address ZipPhone Address Zip Phone E-mail City Address City Zip Phone E-mail Name Address City Zip Phone Yes. I want to register in Onl f Tnnrnamrnt ae- $340.00 $ $255.00 $ =$255.00 170.00 $ .00. $ shi Pro ram see reverse) $ ed $ Entry Deadline: May 29, 2003 Please make checks payable to: City of Azusa Azusa Recreation and Family Services Department C/o Ed Sierra 320 N. Orange Place Azusa, CA 91702 TournamentCommittee Diane Chagnon Bob Garcia Jerry Gomer Joe Jacobs Tom Montague Tom Newman Ed Sierra t s For More Information Please Contact: Ed Sierra at (626) 812-5195 City of Azusa Recreation and Family Services Department 320 N. Orange Place Azusa, CA 91702 phone (626) 812-5280 fax(626)812-0321 "KIDS COME FIRST" GOLF TOURNAMENT Friday, June 13, 2003 Sponsored by Council Member Diane Chagnon Azusa Recreation and Family Services Department - Azusa Police Officers Association J & J Sports and Trophies of Azusa "Kids Come First" Tournament. Goal "Kids Come First" is our focus and we believe it should be a community focus as well. "Kids Come First" is a fund raising golf tournament with proceeds funding quality recreation opportunities to the children of our community. Event Schedule. When: Friday, June 13, 2003 Where: Azusa Greens Country Club 919 W. Sierra Madre Avenue Azusa, CA 91702 Time: 6:30 a.m.Check-in 7:00 a.m. Shotgun Start 1:30 p.m. Lunch / Awards BEST BALL SCRAMBLE FORMAT Golfer's Package $85.00 per golfer • Green Fees • Cart Club House Facility • Lunch • _ Great Award Package First Place Second Place Third Place Longest Drive Closestto Pin Free Driving Range Balls • Great Raffle . Don't Play, Golf? A'donation to. sponsor a tee or sand trap . is a great way to get your organization involved. "Kids Come First" Golf Tournament 1 Tier Sponsorship Program Several levels of sponsorship are available providing added recognition and benefits to organizations, companies, or individuals as follows: Tournament Sponsor - $5,000.00 Includes registration for 2 foursomes, lunch, 4 carts, 8 tournament jackets, 8 "mulligan packages", Banner and Tee Sponsorship. i Gold Sponsor - $2500.00 Includes registration for 1 foursome, lunch, 2 carts, 4 tournament jackets, .4 "mulligan packages', and Tee Sponsorship. Silver Sponsor - $1000.00 Includes registration for 1 foursome, lunch, 2 carts, 4 "mulligan packages", and Tee Sponsorship. • Corporate Sponsor - $500.00 Includes registration for I foursome, lunch, 2 carts, and Tee Sponsorship. • Tee sponsorship - $100.00 • Sand Trap Sponsor - $50.00 Non-cash Donation Door Prizes, Raffle Prizes, etc. All Donations to the Day's Raffle are both Welcomed and Greatly Appreciated. THANK YOU FOR YOUR SUPPORT! I CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, FEBRUARY 24, 2003 - 6:30 P.M. The Utility Board Members of the City of Azusa met in regular session, at the above date and time in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairperson Chagnon called the meeting to order. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ALSO PRESENT: HARDISON, ROCHA, CHAGNON, MADRID STANFORD City Manager Cole, Assistant City Manager Person, Director of Utilities Hsu, Assistant Director of Resource Management Tang, Electric Engineer Langit, Administrative Technician Yang, Information Systems Staff Graf -Gaynor and Morningstar, Consultant Suzanne Avila, Deputy City Clerk Toscano, City Clerk Mendoza. Public Participation Mr. Jeffrey Cornejo addressed Council presenting a 1928 photograph taken at the first celebration of Armistice Day, which displayed an American Flag on top of the Wells Fargo Bank on the corner of Azusa Avenue and Foothill Boulevard. He and Councilmember Rocha, Chair of the Azusa Monument Committee, reported that they are in the process of obtaining permission to place an American Flag atop of the bank again. The purpose would be to honor the families of service men and women who are serving our country in the military at this time. They reported that there may be a Dedication Ceremony on March 22nd and that a light would be focused on the Flag 24/7. Councilmember Rocha also advised that they are in the process of bringing the Memorial Moving Wall back to Azusa. Call to Order Roll Call Also Present Pub Part J. Cornejo Rocha Comments 005 The CONSENT CALENDAR consisting of Items II -A and 11-13, were approved by motion of Consent Councilmember Rocha, seconded by Chairperson Hardison, and unanimously* carried. Calendar Councilmember Stanford was absent. II -D Spec A. The minutes of the regular meeting of January 29, 2003, were approved as written. Min appvd B. Authorization was given to staff to retain services of an independent consulting firm to review Edison's cost Edison's cost of service for connecting new Azusa Substation to Edison's 66kV distribution Connecting system. Azusa Substa. Scheduled Items Sched Items Moved by Councilmember Hardison, seconded by Chairperson Chagnon and unanimously* Pro -Forma carried to approve the following pro -forma power resource agreements and authorize the Mayor Power to execute the agreements: 1. Netting Agreement between Salt River Project (SRP) and Azusa. 2. Resource Western System Power Pool (WSPP) Agreement Exhibit A -Netting. 3. Arizona Public Service Agreements (APS) — Pro -forma WSPP Transaction Confirmation Agreement. Moved by Chairperson Chagnon, seconded by Councilmember Hardison and unanimously* Contact carried to approve contract with AT&T for circuit access needed to connect to the new California W/AT&T Independent System Operator (ISO) network. Staff was directed by the Councilmembers to try and find out if there was any value of the old equipment. Staff Reports/Communications Staff Rpts Information Systems Manager Morningstar addressed Councilmembers stating that Information Info Svs Mgr Systems Department has a big project between Azusa Customer Service Division and the City of Cust Info Colton's Public Utilities to look at what is going to be done with the Customer Information System System, CIS, because Hewlett Packard is not long going to support the 3000 hardware that both Replacement cities run on. He detailed the history of the 3000 hardware, utility system as well as issues and Process' options that are available. He stated that a joint investigation is being conducted by Colton Public Utilities and Azusa in order to select a CIS replacement option. He detailed the process. He noted that a Customer Service Working Group has also been created between both cities to work through the various issues in order to reach a recommendation to create a RFQ in order to solicit vendor information. Discussion was held between Councilmembers and staff regarding the issue. Assistant Director of Resource Management Tang addressed Council detailing the process for the Negotiations New Distribution Substation Negotiation with Edison. He detailed what has occurred between W/Edison Edison and Staff regarding the negotiations. Lengthy discussion was held. Substation Update on U.S. Forest Service Interpretative Center. Presentation was made by Assistant City Update on Manager Person, Consultant Suzanne Avila and representatives from North East Trees of the U.S. Forest Interpretative Center project which included subjects such as: the plant palette, floor plan, Service building, and parking area. Lengthy discussion was held between staff and Councilmembers with Interpretive many suggestions on changes to the project as presented. It was consensus of Councilmembers Center. that staff come back to the next meeting with variations of the plan and that between now and then, Council to meet with all involved with the plan. Chairperson Chagnon suggested that Council could provide their input of the plan to City Manager Cole. 02/24/03 PAGE TWO 006 briecYoi's' Comments ` Dir Com Chairperson Chagnon requested that a Subcommittee be formed to formulate a Development Subcom. Agreement for Monrovia Nursery Project. Discussion was held. It was consensus of the Dev Agmt Councilmembers that the a subcommittee for the Monrovia development agreement be formed Mon Nurs when the whole Council is present. ` Chairperson Chagnon noted that the fence that surrounds the Transit Yard is rusty and needs Chagnon painting. Comments It was consensus of Councilmembers to recess to Closed Session to discuss the following: Closed Sess Conference with Real Property Negotiator (Government Code Section 54956.8) Property: 1020 W. I Uh Street, Azusa, CA 91702 City Negotiator: Joe Hsu, Director of Utilities Negotiating Parties: Net Development Co. The City Councilmembers recessed at: 9:18 p.m. and reconvened at 9:50 p.m. There was no Recess reportable action taken in Closed Session. , Reconvene It was consensus of Councilmembers to adjourn in memory of Glen Hart. Adjourn TIME OF ADJOURNMENT: 9:52 P.M. SECRETARY NEM RESOLUTION NO. 03-C20. 02/24/03 PAGE THREE 00'7-- CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL WEDNESDAY, JANUARY 29, 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 Manager Cole, Assistant City Manager Person, Assistant to the Director of Utilities Kalscheuer, Assistant Director of Water Operations Anderson, Assistant Director of Resource Management Tang, Administrative Technician Yang, Business Development/Public Benefits Program Coordinator Reid, Information Systems Staff Graf-Gaynor,eWofford, and Morningstar, Consultant Suzanne Avila, Deputy City Clerk Toscano, City Clerk Mendoza. Public Participation None. It was consensus of Councilmembers that items III -A, Lease Agreement with U.S. Forest Services and IV -H, Presentation of San Gabriel River Master Planning by Assistant City Manager Person and Representatives of North East Trees, be brought forward for handling at this time. Call to Order Roll Call Also Present Pub Part None. Items 111-A & IV -H brt fwrd Assistant City Manager Robert Person addressed the issue providing background information Asst City regarding the San Gabriel River Master Planning and the relationship with North Fast Trees, who Mgr aided the City in obtaining the million dollar grant to begin the process. He also noted that the Comments Lease Agreement with U.S. Forest Service is a related Issue and will also be considered at this time. I Ms. Claire Robinson, Executive fJirector of North East Trees, and Sarah Easley, Project Manager for the Vision Plan of Azusa addressed the Council presenting the San Gabriel Canyon Vision Plan and Design Guidelines for the Azusa Canyon area. She distributed the Executive Summary that they will be presenting in February. She noted project goals are to enhance the recreational and educational opportunities in the San Gabriel Canyon, to facilitate ecosystem restoration and to develop a cohesive regional identity. She noted four projects that are currently in planning stages by the City of Azusa in the canyon: San Gabriel River Regional Bike Path Extension, San Gabriel Canyon Spreading Basins Landscape Improvement Project, San Gabriel River and Angeles National Forest Gateway Interpretive Center, and the Azusa Canyon River Park and detailed each project and answered questions posed by Councilmembers. Assistant City Manager Robert Person presented the Lease Agreement with the U.S. Forest Service for a new and larger ranger station at the Azusa entrance to the San Gabriel Canyon. He stated that there are now $350,000 in grant funds committed to the Interruptive Gardens and they are trying to defray costs. The agreement calls for the City to construct a building which will provide occupiable space no less than 868 square feet and sufficient parking to include no less than 15 visitor parking spaces. The Forest Service agrees to pay the $12,000 per year as lease payment provided that if the City obtains a federal grant, or other federal funding, in connection with construction and installation of the Building, said funds shall be applied to the annual rental amount. Said rental amount is also subject to future adjustments. Discussion was held regarding the specifications of the proposed building which included materials, river rock, masonry, wheat color, surfaces, etc. Additional discussion was held regarding term of lease, grant funds and surrounding landscaping. The fiscal impact consists of the current budget from Water Division which has appropriation of about $700,000 for the project. Of this amount, $91,000 is budgeted for architectural services, $400,000 for the building, and $200,000 for landscaping and paving around the building. C. Robinson &S. Easley North East Trees R. Person Comments Discussion Moved by Councilmember Stanford, seconded by Mayor Pro -Tem Hardison and unanimously Lease Agmt carried to approve the lease agreement with the United States Department of Agriculture, or U.S. Forest specifically with the U.S. Forest Service, for its lease of the San Gabriel Canyon Information Station Service. and authorization was given to the City Manager to sign same. The CONSENT CALENDAR consisting of Items II -A through II -G, were approved by motion of Consent Councilmember Stanford, seconded by Chairperson Chagnon, and unanimously carried with the Calendar exception of item 11-D, which was considered under the Special Call portion of the Agenda: 11-D Spec A. The minutes of the regular meeting of December 23, 2002, were approved as written. Min appvd B. Approval was given to award the bid for the purchase of 2003 Hydro Excavation (Vacuum) Hydro Exc Truck to Haaker Equipment Company in the amount of $190,970.32. Haaker Equip C. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA UTILITY BOARD/CITY Res. 03-05 COUNCIL OF THE CITY OF AZUSA, AMENDING SCHEDULE OF CHARGES AND RULES AND Amend Sch REGULATIONS GOVERNING THE ELECTRIC AND WATER SERVICE SUPPLIED BY AZUSA LIGHT Charges & Rules L8 W & WATER. D. SPECIAL CALL ITEM. Spec Call E. Authorization was given to advertise Project W-179, Foothill and Barranca Water Main Project Prj W-179 and receive bids. Fth & Brnca F. Authorization was given to advertise Project W-184, Relining of 20 -Inch waterline from Well Prj W-184 No. 10 to the Wilson Reservoir and receive bids. Waterline Wilson Res. 01/29/03 PAGE TWO 005 G. Authorization was give to advertise Project W-185, 12 inch waterline crossing Big Dalton Prj W-185 Wash at Gladstone and advertise for bids. Waterline Big Dltn Wsh Special Call Items Spec Call Items Information Systems Managers Graf -Gaynor, Wofford, and Morningstar provided a presentation Presentation on the proposed new telephone system to be provided by Daycom Systems. They provided d of Avaya detailed history of the current telephone system as well as the need for phone system upgrades G311 due to obsolete systems throughout the City. They also noted the special enhancements that will Phone system be provided with the new system. Moved by Councilmember Stanford, seconded by Chairperson Chagnon and unanimously carried Purchase of to approve the purchase of the Avaya G311 phone system upgrades from Daycom Systems and Phone system authorize City's Purchasing Officer to execute a Purchase Order in an amount not -to -exceed Daycom $82,500. Systems Scheduled Items Sched Items Assistant Director of Resource Management Tang addressed Council presenting the concept of B. Tang proposing the development and Implementation of a Pilot Water Conservation Grant Program Pilot Prgm which consists of making funds available to residents, businesses, and schools, for drought Water resistant plants and trees. He detailed the application process and advised that staff will set grant Conservation amounts with a budget of $150,000 in grant funds. Moved by Councilmember Stanford, seconded by Councilmember Rocha and unanimously carried to authorize staff to develop a pilot water conservation grant program to promote use of drought tolerant plants/trees for landscaping for a period of one year with a budget not -to -exceed $150,000. Staff Reports/Communications Staff Rpts Assistant Director of Resource Management Tang addressed item regarding SB 1078 -Renewable SB 1078 Portfolio Standards, stating that this bill requires that retail sellers increase their purchase of Renewable energy from renewables by at least 1 % per year until a renewables portfolio standard is reached Portfolio which makes up 20% of seller's overall energy purchases. He stated that although municipal Standards utilities are not regulated by State agencies, the legislation has language strongly encouraging them to follow the same guidelines. He presented and detailed three options for discussion for achieving the mandate. It was consensus of Councilmembers that quarterly updates on the issue be provided to the Utility Board. Assistant to the Director of Utilities Kalscheuer addressed item regarding Waste Diversion and C. Kalscheuer Disposal Trends Report stating that for the calendar year 2001, the City reached a diversion rate Waste of 53% which will be reported to the State as the City's official diversion rate. He stated that in Diversion & December 2002 there was an increase of yard waste diversion by 40% compared to December Disposal 2001 and the approximate savings Is about $2,800 in MRF processing costs for 1 month. Trend Rpt Allocation of Replacement Water Item was presented for Information purposes. Replace Water Transforming Azusa Into an Urban Forest item was presented for Information purposes. Azusa — Councilmembers requested that staff continue providing updates on the Issue. Urban Forest 01/29/03 PAGE THREE B. Tang 1m Assistant Director of Resource Management Tang provided an update on the Negotiations Update with Edison regarding the New Substation Agreement and Edison proposed 400% increase In Edison wholesale distribution charges to Azusa. Change Order Policy and Procedure item was presented for information purposes. The FY 2002-2003 Work Plan Updates for Azusa Light and Water was presented. Chairperson Chagnon requested that staff explain the Azusa Advantage, Azusa Today and Azusa Tomorrow City Manager Cole responded stating that Azusa Tomorrow is an information newsletter that goes out to the public once a month. Azusa Today was a television show that is no longer in operation. The Azusa Advantage is a team approach to media communication to get out the message about Azusa being a good place to live. Directors' Comments Chairperson Chagnon advised that she would like to see information on Measures L & M before they go out to the public. Discussion was held regarding Hands Across Azusa. Assistant to the Director of Utilities Kalscheuer advised that staff is currently looking at the format of the report and may be proposing some changes in the future. It was consensus of Councilmembers to adjourn. TIME OF ADJOURNMENT: 8:42 P.M. SECRETARY NEXT RESOLUTION NO. 03-C6. 01/29/03 PAGE FOUR Policy Work Plan 02-03 Director's Comments C. Kalscheuer Comment Adjourn 0� 1 1410bla CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES�� DATE: FEBRUARY 24, 2003 SUBJECT: NEW AZUSA SUBSTATION -'PROJECT UPDATE RECOMMENDATION It is recommended that Utility Board/City Council authorize staff to retain services of an Independent consulting firm to review Edison's cost of service for connecting new Azusa substation to Edison's 66W distribution system. BACKGROUND During regular Board meeting held on December 23, 2002, staff presented to Azusa Utility Board the major cost components of new substation project: 1) Land Acquisition (escrow payment July 2002) $ 720,000 2) EPC Substation (EPC Agreement Awarded 12/23/02) $ 3,086,000 3) Edison 66kV Lines (Edison Agreement *) $ 4,365,000 4) Azusa 12 kV Lines (Azusa Proposed CIP) $ 500.000 Estimated Total Cost: $ 8,671,000 (*estimate only as of 12/23/02) On December 23, 2002, Azusa Utility Board awarded to Black & Veatch Construction Inc. (BVCI), the Engineering, Procurement & Construction (EPC) portion of substation project. Thereafter, staff met with Edison to discuss issues related to: (1) Edison's method of service; (2) Contractual terms and conditions of Edison's service, including payment on their portion of work. On January 31, 2003, Edison verbally Informed Azusa staff that Edison will not be able to fund the interconnection work and will require City of Azusa to provide upfront funding before any work on their part can commence. Preliminary cost estimate by Edison amounted to several million dollars. G ►'/- 0� a2��1_� ��6��v °s ��J m:l During a follow up meeting with Edison on February 12, 2003, Edison presented to Azusa staff a revised cost estimate in the amount of $4,953,000 to defray Edison's portion of the work. Since amount involved is significant, staff recommends retaining services of an independent consulting firm to carefully review Edison's estimated cost for method of service, before disbursing upfront any funds to Edison. Staff believes this is a prudent next step. Moreover, Edison's demand of upfront payment requires Azusa to incur significant costs that were not budgeted this fiscal year. Therefore, staff intends to submit to the Utility Board/City Council a project Budget Amendment when review of costs is finalized. Staff is in contact with City Treasurer and Interim Finance Director regarding the financing of this project. Finally, and for your information, the new Azusa substation was named "Kirkwall Substation" as consented to by Edison, in identifying the new electrical facility on Edison's operational maps and contract documents. The other two names—Gladstone and Azusa South Substation, were rejected by Edison. FISCAL IMPACT Due to the magnitude of funds required for this project, staff is pursuing a revenue bond financing. As the Light fund begins payments on interest and principle, the operating expenses will likewise increase. Therefore, the project will a have long term fiscal impact. Prepared by: F. Langit & B. Tang v 009 TO: FROM: DATE: SUBJECT: MPAA. AGENDA ITEM HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL JOSEPH F. HSU, DIRECTOR OF UTILITIES, V FEBRUARY 24 2003 APPROVAL OF PRO -FORMA WHOLESALE POWER RESOURCE AGREEMENTS RECOMMENDATION It is recommended that the Utility Board/City Council approve the following pro -forma power resource agreements and authorize the Mayor to execute the agreements upon the preparation of execution copies. 1. Netting Agreement between Salt River Project (SRP) and Azusa 2. Western System Power Pool (WSPP) Agreement Exhibit A - Netting 3. Arizona Public Service (APS) - Pro -Forma WSPP Transaction Confirmation Agreement BACKGROUND The City has entered into various pro -forma enabling agreements in the past several years for the purchase and sale of wholesale electricity, among them: (1) an enabling agreement with SRP; and (2) the WSPP multi-party enabling agreement. Due to the current financial crisis in the wholesale merchant generation sector, the market participants are becoming increasingly cognizant of the need to complement/revise certain terms and conditions to the pro -forma enabling agreements. r The first two agreements above clarify the parties' payment obligations under the respective SRP and WSPP agreements. Such payment obligations are to be calculated and enforced on a net basis, i.e., net of both purchases and sales so that the Party owing money will pay the net amount of money owed. This provision is important in order to reduce a party's financial exposure in case of counterparty's default. The third agreement includes some clarifications to the operational aspects of wholesale transactions conducted under the WSPP enabling agreement with APS as well as to agree on the standard of review in case of contractual disputes. The proposed standard of review Is the so-called "Mobile -Sierra" standard, a standard that Is becoming prevalent in the wholesale power transaction in light of wholesale contract disputes arising from the California energy crisis. 010 Staff has reviewed the proposed agreements and has found them acceptable; therefore staff is hereby recommending the execution of the agreements. FISCAL IMPACT No fiscal impact as a result of the actions taken in this agenda item is anticipated. Prepared by: Bob Tang, Assistant Director Resource Management Oil 021203 NETTING WSPP Netting Azusa -APS WSPP AGREEMENT.doc Agreen ent.doc Sales Confirmation (0 Oil NETTING AGREEMENT This Agreement entered into on , 2003, constitutes the understanding between Salt River Project Agricultural Improvement and Power District, an agricultural improvement district organized and existing pursuant to the laws of the State of Arizona ("SRP'), and City of Azusa, a municipal corporation of the State of California ("Azusa"), (each, SRP and Azusa, a "Party" and collectively, the "Parties") pertaining to certain obligations arising out of all existing and future obligations between the Parties relative to the sale, purchase, or exchange of electric power or capacity entered into under the underlying master agreement, including but not limited to, the Economy Energy Agreement, dated February 24, 1986 or confirmations (a "Contract" and collectively , the "Contracts"). The Parties desire to provide a method by which any amounts due under the Contracts may be settled by a monthly netting settlement and by which the Contracts between the Parties may be terminated and liquidated under the circumstances set forth below. To the extent any of the terms and conditions contained herein are inconsistent with any of the terms and conditions in the Contracts, the terms of this Agreement shall prevail. All terms beginning with an initial capitalized letter but not otherwise defined herein shall have the meanings ascribed to such terms in the relevant underlying Contract. 1. Effective as of the date of this Agreement, the Parties shall net monthly any payment obligations between them for the purchase and sale of electric power arising under transactions under the Contracts in any calendar month. The Parties shall adhere to the following procedure: (a) The Creditor Party shall issue invoices at least 3 days prior to the Payment Date (as defined in Section 1(d) below), the Parties shall confer by telephone and shall compare and confirm invoice amounts owed by and/or to each other. Unless otherwise agreed, the Party which is owed the greater amount (the "Creditor Party") shall issue a net -out worksheet which details the transactions between the Parties and sets forth the net receivable that is owed to the Creditor Party. If the amounts owed by each Party to the other are equal, neither Party shall be required to make payment. If the Contract calls for payment based upon the Seller's best estimates, where actual amounts are not available, then the monthly net receivable shall be calculated based on such estimates. (b) The Party that owes the net receivable (the "Debtor Party") shall pay such amount on or before the Payment Date. For any amount that is due and owing to the Creditor Party which is not received by the Creditor Party by the Payment Date, the Debtor Party shall pay interest on such amount at the Interest Rate (as defined in Section 2(d) below), from the Payment Date until the date paid. (c) The Parties shall attempt to reconcile any disagreements as to items contained in any billing statement or invoice promptly and in a mutually agreeable manner. Notwithstanding the preceding sentence, neither Party may refuse to participate in the netting process under this Agreement due to a disputed billing statement or invoice. In the event of a disagreement over an amount owed, the Party disputing the amount shall nevertheless agree to pay the entire amount (including the disputed portion) pending resolution of the dispute in accordance with the underlying Contract and such amount shall be included in the monthly netting process. To the extent not otherwise addressed in the underlying Contract, if the Parties cannot resolve such dispute, then either Party may pursue any remedy available at law or in equity to enforce its rights pursuant to this Section. (d) "Payment Date" shall mean: The first Business Day following the 19`h day of the month following the month in which the relevant deliveries occurred, or ten days after receipt of the invoice, whichever is later (or, if such day is not a Business Day, the immediately following Business Day). 2. CLOSE-OUT NETTING (a) Notwithstanding anything in the Contracts or any other agreement between the Parties to the contrary, and without limiting any other rights that may be available to the Non -Defaulting Party (as hereinafter defined), if a Party (the "Defaulting Party"): i) is the subject of a bankruptcy, insolvency, or similar proceeding; ii) fails to pay its debts generally as they become due; iii) makes a general assignment for the benefit of its creditors; iv) applies for, seeks, consents to, or acquiesces in the appointment of a receiver, custodian, trustee, liquidator, or similar official for all or a substantial portion of its assets; v) fails to pay or perform, when due, any obligations to the other Party ("Non - Defaulting Party") as required under the Contracts; vi) fails to provide adequate security for or assurance of its ability to perform its obligations under any transaction under the Contracts within two (2) business days of a reasonable request by the other party; then the Non -Defaulting Party shall, to the extent allowed by law, have the right, exercisable in its sole discretion, to (1) suspend performance; (2) withhold any payments due to the Defaulting Party; and/or (3) liquidate and terminate all transactions entered into under the Contracts (b) In the event the Non -Defaulting Party elects to liquidate and terminate all transactions under t he u nderlying m aster a greement, t he N on -Defaulting P arty m ay designate a date (which date shall be no less than five (5) or more than twenty (20) Business Days 013 after the Non -Defaulting Party delivers notice) (the "Early Termination Date") on which all transactions then outstanding under the underlying master agreement shall be liquidated and terminated (the "Terminated Transactions"); provided, however, if the Defaulting Party is the subject of a bankruptcy, insolvency, or similar proceeding, all o utstanding t ransactions s hall a utomatically t erminate w ithout n otice or r ight t o cure, and without any other action by either Party as if an Early Termination Date has been declared immediately prior to such event. If an Early Termination Date has been designated, the Non -Defaulting Party shall in good faith, calculate its Gains, Losses, and Costs resulting from the occurrence of the Early Termination Date. The Gains, Losses and Costs shall be determined by comparing the value of the remaining term, contract quantities and contract prices in respect of the Terminated Transactions as if such transactions had not been terminated to the equivalent quantities and relevant market prices for the remaining term either as quoted in a bona fide offer from a third party or which are reasonably expected to be available in the market under a replacement contract in respect of the Terminated Transactions. To ascertain the market prices of a replacement contract, the Non -Defaulting Party may consider, among other valuations, any or all of the settlement prices of relevant exchange -traded futures contracts, quotations from leading dealers in the relevant Contract market and other bona fide third party offers, all adjusted for the length of the remaining. It is expressly agreed that the Non - Defaulting Party shall not be required to enter into replacement contracts in order to determine the Settlement Amount (as defined below). Any extensions of the term of the transaction under the Contract that are not binding on the Parties as of the Early Termination Date (including, but not limited to, "evergreen" provisions and options to extend) shall not be considered in determining Losses or Gains from the termination thereof. The Non -Defaulting Party shall aggregate such Gains, Losses and Costs with respect to all transactions under the Contract into a single net amount (the "Settlement Amount") and notify the Defaulting Party thereof, and: (1) If the Non -Defaulting Party's aggregate Losses and Costs exceed its aggregate Gains, the Defaulting Party shall, within five (5) Business Days of receipt of such notice, pay to the Non -Defaulting Party an amount equal to the Settlement Amount, plus (i) any Unpaid Amounts owing to the Non - Defaulting Party, which amount shall bear interest at the Interest Rate from the Early Termination Date until paid less (ii) any Unpaid Amounts owing to the Defaulting Party; or (2) If the Non -Defaulting Part's aggregate Gains exceed its aggregate Losses and Costs, if any, resulting from termination of the transactions, the Non - Defaulting Party shall pay to the Defaulting Party shall, within five (5) business D ays o f r eceipt o f s uch n otice, a n a mount a qual t o t he S ettlement Amount, less (i) Unpaid Amounts owing to the Non -Defaulting Party, and plus (ii) any Unpaid Amounts owing to the Defaulting Party. 3 014 (c) If the Defaulting Party disputes the Non -Defaulting Party's calculation of the Settlement Amount, the Party disputing the amount shall nevertheless agfee to pay the entire amount (including the disputed portion) pending resolution of the dispute in accordance with the underlying Contract. To the extent not otherwise addressed in the underlying Contract, if the Parties cannot resolve such dispute, then either Party may pursue any remedy available at law or in equity to enforce its rights pursuant to this Section. (d) As used in this Agreement with respect to each Party (i) "Interest Rate" shall mean the lower of the then effective prime rate published under "Money Rates" by the Wall Street Journal plus two (2) percent per annum, or the maximum applicable lawful interest rate; (ii) "Costs" shall mean brokerage fees, commissions, and other similar transaction costs and expenses reasonably incurred by the Non -Defaulting Party either in terminating any arrangement by which it has hedged its obligations pursuant to a terminated firm transaction or in entering into new arrangements which replace a terminated firm transaction; (iii) "Gains" shall mean an amount equal to the present value of the economic benefit (exclusive of Costs) if any, to the Non -Defaulting Party resulting from the termination of a firm transaction determined in a commercially reasonable manner as of the Early Termination Date; (iv) "Losses" shall mean an amount equal to the present value of the economic loss (exclusive of Costs), if any, to the Non -Defaulting Party resulting from the termination of a firm transaction determined in a commercially reasonable manner as of the Early Termination Date; provided, however, that in no event shall a Party's Gains, Losses or Costs include any stranded costs or any charges or penalties not directly related to the termination; and (v) "Unpaid Amounts" shall mean any other amounts that become payable (or that would have become payable on or before the Early Termination Date) to a Party under the terms of this Agreement or in respect of any transaction and which remain unpaid as of such Early Termination Date. (e) To the extent allowed by law, if a Settlement Amount is payable by the Non - Defaulting Party to the Defaulting Party under subsection (2)(b) above, then, at the option of such Non -Defaulting Party, and without prior notice to the Defaulting Party, such S ettlement A mount in ay b e r educed b y its set-off against a ny amount(s) ( the "Other Agreement Amount") payable by the Defaulting Party or any of its affiliates to the Non -Defaulting Party or any of its affiliates under any other agreement(s), instrument(s) or undertaking(s) between the Defaulting Party or any of its affiliates and the Non -Defaulting Party or any of its affiliates (and the Other Agreement Amount will be discharged promptly and in all respects to the extent it is so set-off). If the Non -Defaulting Party exercises such option, it shall give notice to the Defaulting Party of any set-off effected under this subsection. If an obligation is unascertained, the Non -Defaulting Party may in good faith estimate that obligation and set-off in respect of that estimate, subject to such Non -Defaulting Party accounting to the Defaulting Party when the obligation is ascertained. Nothing in this subsection shall be effective to create a charge or other security interest. This subsection shall be without prejudice and in addition to any right of set-off, 4 015 combination or accounts, counterclaim, lien or other right to which any Party is at any time otherwise entitled (whether by operation of law, contract or otherwise). 3. The Non -Defaulting Party's rights under this Agreement are in addition to afid not in limitation or exclusion of any other rights the Non -Defaulting Party may have (whether by contract, operation of law or otherwise). Each Party reserves to itself all rights, remedies, counterclaims, and defenses which it is or may be entitled to arising from or out of the transactions under the Contracts, at law or otherwise. 4. The monthly netting and close-out netting mechanisms herein described shall apply to Contracts (as that term is herein defined). The Parties agree that a Contract as defined in this Agreement shall constitute a "forward contract" within the meaning of the United States Bankruptcy Code. 5. This A greement s hall b e e ffective as o f t he d ate f irst w ritten a bove a nd s hall c ontinue i n effect month-to-month thereafter. Either Party may terminate this Agreement by giving the other Party hereto at.least thirty (30) days written notice. Notice may be given by (i) certified U.S. mail (ii) telex or telegram (iii) signed facsimile or (iv) hand delivery. Termination will be effective on the first day of the calendar month after expiration of the notice. Such termination shall not apply to any transaction entered into or invoices or payments due or outstanding prior to the effective date of such notice. 6. In the event either Party assigns or otherwise transfers the Contracts as provided for in such Contracts, this Agreement shall be binding upon the successors and assigns of the transferring Party. 7. This Agreement shall have the effect of amending the provisions of all Contracts between the Parties hereto relating to the manner and method of payment, except as otherwise agreed to by the Parties in writing. As herein amended, such existing Contracts shall remain in effect. Any future Contracts between the Parties shall also be subject to this Agreement unless otherwise agreed to by the Parties in a writing which references this Agreement. 8. This Agreement and the Parties' respective rights and obligations hereunder shall be governed by and construed in accordance with the laws of the State of New York, excluding any conflict of laws rule which would apply the law of any other jurisdiction. 016 10. All demands, notices and other communications provided for hereunder shall, unless otherwise specifically provided herein, (a) be in writing addressed to the party receiving the notice at the address set forth below or at such other address as may be designated by written notice, from time to time, to the other party, and (b) be effective upon delivery, when mailed by U.S. mail, registered or certified, return receipt requested, postage prepaid, or personally delivered. Notices shall be sent to the following addresses: (i) SRP: CHECKOUT: Phone (602) 236-4522 * or Phone (602) 236-4508 SEND INVOICES TO: Salt River Project Attn: Manager Power Accounting Services ISB 253 P.O. Box 52025 Phoenix, AZ 85072-2025 FAX INVOICES TO: (602) 236-4579 * MAIL PAYMENT: Salt River Project Attn: Manager Power Accounting Services ISB 253 P.O. Box 52025 Phoenix, AZ 85072-2025 WIRE PAYMENT: Bank: Bank One Arizona ABA#: 1221-00024 Account #: 000 1 -0452 Nam_ a of Account: SRPAI&PD Electric System Revenue Fund *ACH PAYMENT: Send fax to Anne Stewart in Treasury (602) 236-5608, Identify company name, date of ACH, amount to be wired, and bank being used. 017 (ii) Azusa: WIRE PAYMENT: Bank: Wells Fargo Branch, City of Azusa Branch ABA#: 1210-00248 Account #: 4950041244 Name of Account: City of Azusa General Account 11. This Netting Agreement may not be assigned by either Party without the prior written consent by the other Party. 12. Each Party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action, claim, or proceeding relating to this agreement. 13. On the date first herein mentioned and the date of entering into each transaction hereunder, each party represents and warrants to the other party that: (i) it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation; (ii) it has all regulatory approval necessary for it to legally perform its obligations under this Netting Agreement and each transaction hereunder; (iii) the execution, delivery and performance of this Netting Agreement and each transaction hereunder are within its powers, have been duly authorized by all necessary action and do not violate any of the terms and conditions in its governing documents, any contracts to which it is a party or any law, rule, regulation, order or the like applicable to it; (iv) this Netting Agreement, each transaction hereunder, and each other document executed and delivered in accordance with this Netting Agreement constitutes its legally valid and binding obligations enforceable against it in accordance with their respective terms (subject to applicable bankruptcy, reorganization, moratorium or similar laws affecting creditors' rights generally and subject, as to enforceability, to equitable principles of general application regardless of whether enforcement is sought in a proceeding in equity or at law); (v) there is not pending or, to its knowledge, threatened against it or any of its affiliates any legal proceedings that could materially adversely affect its ability to perform its obligations under this Netting Agreement and each transaction hereunder; (vii) no Event of Default or event which, with notice and/or the passage of time, would constitute an Event of Default with respect to it has occurred and is continuing and no such event or circumstance would occur as a result of its entering into or performing its obligations under this Netting Agreement and each transaction hereunder; and (viii) it is a "forward contract merchant" within the meaning of the United States Bankruptcy Code. 018 14. This Netting Agreement contains the complete agreement of the Parties hereto with respect to the matters contained herein and supersedes all other agreements, understandings and negotiations, whether written or oral, with respect to the matters contained herein. SALT RNER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT By: Name: Title: Date: City of Azusa By: _ Name: Title: 019 WeI i, NETTING Each Party that executes this Exhibit A to the Agreement agrees to net payments for transactions under WSPP S ervice S chedule A, B, and C w ith any o ther P arty o r P arties which also have agreed to net payments by executing a copy of this Exhibit A. The Party executing this Exhibit A shall indicate below when it desires that its agreement to net becomes effective. A Party agreeing to net under this Exhibit A shall comply with the provisions of Section 28.2 of the Agreement. Defined terms used herein are as defined in the WSPP Agreement. Netting shall be done in accordance with the following provision: If the Purchaser and Seller are each required to pay an amount on the payment due date in the same month for transactions under the Agreement or Confirmation Agreement, then such amounts with respect to each Party will be aggregated and the Parties will discharge their obligations to pay through netting, in which case the Party owing the greater aggregate amount will pay to the other party the difference between the amounts owed consistent with the payment times in Section 9.2 of the Agreement, unless the Parties have otherwise agreed to a different payment time as allowed by the Agreement. Each Party reserves to itself all rights, set -offs, counterclaims and other remedies and/or defenses to which it is or may be entitled, arising from or out of the Agreement. All outstanding payments between the Parties which are to be netted pursuant to this Exhibit A for transactions under WSPP Service Schedule A, B, and C shall be offset against each other or set off or recouped therefrom. Name of Authorized Representative Name of WSPP Member Signature of Authorized Representative Effective Date for Netting Date of Execution )MI APSC Contract No. ��AMW THE POWER To MAKE IT HAPPEN" The following terms and conditions shall govern the agreement made ff rnsacGon Date) between (AP C _ o n Trade, Trader), on behalf of Arizona Public Service Company ('APSC" or Seller') andjQounterp a �. behalf of, City of Azusa ("Counterparty" or "Purchaser"), whereby APSC agreed to sell and deliver energy and Counterparty agreed to purchase and receive energy. APSC and Counterparty enter into this Confirmation Agreement (the "Confirmation") pursuant to and in accordance with the Western Systems Power Pool Agreement, effective as of July 27, 1991 and as further amended on September 1, 2002 (the "Agreement"), to which APSC and Counterparty are signatory. Terms used but not defined herein shall have the meanings set forth in the Agreement. In consideration of the premises and the agreements contained herein, the Parties agree as follows: Seller: Arizona Public Service Company Purchaser: City of Azusa Confirm Administrator:_ ° - Confirm Administrator: - (phone) (60 2) 250' (phone) 602 371-5256(facsimile)facsimile Preschedule: (602) 250-4371 Preschedule: Real Time: 602 250-4470 Real Time: Quantity (MW/hr.): Megawatts Quantity (MWh): _ MWh Price ($IMWh): $ . MWh Type: Start date: End date: Day(s) of week: v Hours: Delivery Point: Transmission Contingencies: None Generation Contingencies: None 1. APSC shall provide firm energy in accordance with Service Schedule C of the Agreement utilizing available generation or purchased power resources at the point of delivery. If, in order to maintain firm energy deliveries, APSC is required to obtain additional generation or transmission resources, APSC shall absorb all additional costs incurred, including any charges for generation, transmission or ancillary services. 2. Preschedules shall be exchanged for all deliveries of energy, including identifications of receiving and generating control areas under this Confirmation by 11:00 a.m. Pacific Prevailing Time ("PPT") on the last work day observed by both Parties prior to the scheduled date of delivery. 3. The following definition is added to Section 4 of the Agreement and applies only if this Confirmation includes a Transaction for CAISO Energy: "CAISO Enerov means with respect to a Transaction, a product under which the Seller shall sell and the Purchaser shall purchase a quantity of energy equal to the hourly quantity without Ancillary Services (as defined in the Tariff) that is or will be scheduled as a schedule coordinator to schedule coordinator Transaction pursuant to the applicable tariff and protocol provisions of the California Independent System Operator ("CAISO") (as a mended f rom t !me to t ime, t he "Tariff") f or w hich t he o my a xcuse f or failure to deliver or receive is an "Uncontrollable Force". A CAISO "Schedule Adjustment" (defined as a schedule change implemented by the CAISO that is neither caused by, or within the control of, either Party) shall not constitute an Uncontrollable Force. 021 Mt oXWft Bo.,d ApW.=Aj."2.2I-0JlBev'""I—,\Bob'. la 1u 0221 (I)AM 4. FERC Standard of Review; Certain Covenants and Waivers. Absent the agreement of the Parties to the proposed change, the standard of review for changes to any section of the Agreement (including all Transactions and/or Confirmation Agreements as well as any other documents) specifying terms and condition's agreed to by the Parties herein, whether proposed by a Party, a non-party or FERC acting sua sponte, shall be the "public interest" standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas Service Coro and Federal Power Commission v. Sierra Pacific Pbwer Co ( the "Mobile -Sierra" doctrine). 5. Counterparty represents that all acts necessary to the valid execution, delivery and performance of this Agreement and all Transactions thereunder has or will be taken and performed as required under Counterparty's ordinances, bylaws or other regulations including but not limited to (i) the valid authority of the person a xecuting t his Agreement to b ind t he C ounterparty a nd (ii) t he term of this Transaction does not extend beyond any applicable limitation imposed by relevant governing documents and applicable law. The Parties hereby acknowledge and agree that, except as specifically amended hereby, the Agreement shall remain in full force and effect in accordance with its terms. Counterparty's execution of this Confirmation shall acknowledge its agreement to these terms and conditions. Please return a copy via facsimile to (602) 371-5256 attention the APSC Confirm Administrator listed above. Counterparty's failure to notify APSC of any exception to these terms and conditions, or its failure to return an executed copy of this Confirmation within five (5) Business Days of receipt of this Confirmation shall constitute Counterparty's agreement to the terms and conditions set forth herein. ARIZONA PUBLIC SERVICE COMPANY Signature: Printed Name: Title: Date: Signature: Printed Title:: Page 2 CITY OF AZUSA 022 n«„menmxwumre".ant.,e" MAg¢.&zu 3\x,.l�\Bob. mrcpon..en ng�ev�m.Mgme. �ea"ox�a3 U7.eoc C a AWN C100.1 AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: FEBRUARY 24 2003 SUBJECT: CONTRACT WITH AT&T FOR NEW COMMUNICATIONS CIRCUIT BETWEEN AZUSA AND THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR RECOMMENDATION It is recommended that the Utility Board/City Council approve the, execution of a new contract with AT&T for circuit access needed to connect to the new California Independent System Operator (ISO) network. BACKGROUND Since the ISO's start up, MCl/WorldCom has provided telecommunication services for Azusa's communication links with the ISO. The ISO's contract with MCl/WorldCom will expire on December 31, 2003. To take the place of the existing MCl/WorldCom contract, the ISO conducted a competitive process to select a replacement contract. As a result, the ISO has contracted with AT&T to provide telecommunications services after June, 2003. Azusa will need to contract with AT&T for their circuit(s) or circuit access needed to connect to the new ISO network beginning January 2004. Upon Azusa becoming its own Scheduling Coordinator in 1999, the Department had purchased equipment from MCl/WorldCom to interface with ISO's circuit. Azusa's current equipment and configuration were reviewed by AT&T to determine their compatibility with the new proposed ISO network. AT&T determined It could not support Azusa's existing equipment thus Azusa needs to contract for the purchase of new communication service as well as updated equipment. FISCAL IMPACT The fiscal impact will be a one-time equipment purchase of $4,138.93, an ongoing monthly management and maintenance charge of $180, and a monthly circuit fee of $225.00 as a result of the actions taken in this agenda item. Prepared by: Bob Tang, Assistant Director Resource Management In . . M la OrderFormATT SM CE Services AttachmmntCECPEAg 012103 Agreement 121702 reen-ent 023 a' AW EQUIPMENT AND ASSOCIATED SERVICES AGREEMENT 1. PURPOSE OF AGREEMENT. This agreement shall constitute the Equipment and Associated Services Agreement ("Agreement") dated ("Effective Date") by and between AT&T Solutions Inc. ("AT&T"), a Delaware corporation with its principal place of business located at 15 Vreeland Road, Florham Park, New Jersey 07932, and _ ("Customer"), a corporation with its principal place of business located at , for the procurement of customer premise equipment ("Equipment") and associated services ("Associated Services"). AT&T and the Customer agree to the following terms and conditions. 2. SCOPE. a. The Equipment, Associated Services, pricing, and charges shall be described in the attached Schedule A, Engagement Terms for Equipment and Associated Services ("Schedule A"). The terms and conditions of this Agreement shall apply to those transactions in which Customer purchases Equipment and Associated Services from AT&T. The Equipment shall be (i) owned by Customer, ii) reside on Customer designated Premises; (iii) will be for the internal use of Customer; including its subsidiaries and affiliates; and (iv) includes any software associated with the purchase of the Equipment ("Software"). b. The Associated Services provided under this Agreement are limited to those services concerning the procurement of said Equipment by AT&T for the Customer and excludes any network management or other professional services not provided for hereunder. AT&T is not responsible for staging, implementing, testing and tum -up or maintenance of any Equipment purchased hereunder. Customer may request AT&T to perform certain services related to Equipment. If AT&T agrees to perform such services, the parties shall negotiate a separate agreement to govern the delivery of such services. 3. TERM AND TERMINATION OF AGREEMENT. This Agreement shall be begin on the Effective Date and shall be effective for TBD , unless terminated by either party upon at least sixty (60) days prior written notice to the other party. 4. PURCHASES LIMITED TO U.S. ONLY. Customer acknowledges that AT&T's offer Equipment epurchases delivered in the domestic United States. AT&T ha have the sole discretion consider purchases outside of the United States. 5. INVOICING; PAYMENT. AT&T will invoice Customer upon shipment of Equipment unless at its discretion, AT&T believes that the Customer is a credit risk. In such case, AT&T may demand payment in advance of shipment. Customer shall pay such invoiced amounts within thirty (30) days of the invoice date. A service charge of the lesser of one and one-half percent (1 %%) per month or the maximum amount allowed by law will be charged on all past due balances. Customer agrees to pay AT&T's attomeys' fees and other costs incurred by AT&T in the collection of any amounts invoiced hereunder. All payments shall be made in U.S. currency. AT&T preferred method of payment is use of Electronic Funds Transfer ("EFT"). EFT payments by Customer shall be made to the following account of AT&T. Bank of America, Atlanta, GA Account Name: AT&T Solutions Inc. Account# 3750078981 ABA # 111000012 . 6. ORDERS; PRICES; TAXES. a. Orders shall be submitted by Customer to AT&T in written format and shall contain all information required in Section 1.8 of Schedule A ("Order"). Any Information, terms and/or conditions, or other language contained in any documents(s) or purchase order(s) furnished by Customer to AT&T in excess of or outside of the required information in Schedule 1.8 of Schedule A shall be considered void. b. Prices: Customer Discount shall mean the applicable discount off of the List Price. The prices, fees, discounts, and charges (hereinafter'Purchase Price°) listed inSchedule A, shall be as set forth in the Eqwpment manufacturers list price (hereinafter "List Price' which is in effecl on the date of AT&T's receipt of a written order from Customer under this Agreement less the Customer Discount. In cases where the price is not to be determined from a List Price, the applicable pnce will be AT&T's price on the date AT&T receives an Order. from Customer, and such price will be communicated to Customer as soon s precticeble thereafter ("Price'. Notwthstanding the foregoing, if AT&T is delayed from completing an Order due to any ctrange requested by Customer, or as a result of Customer's delay in famishing information or in performing ifs obligations, any Purchase Pnce, Lrst Price, or Price agreed to by AT&T is subject to change. c. Taxes: Customer shall bear applicable federal, state, municipal, and other government taxes, duties, levies, and other similar charges (such as sales, use, etc.). Unless otherwise specified, Prices and List Prices do not include such taxes or similar charges. Exemption certificates, valid In the place of delivery, must be presented to AT&T prior to or with an Order to receive exemption status. Version 10.1 Customer and AT&T Solutions Inc. Proprietary Paget of 7 024 AiOT EQUIPMENT AND ASSOCIATED SERVICES AGREEMENT 7. SHIPMENT AND DELIVERY. a. Title to Equipment and risk of loss to Equipment shall pass to Customer upon shipment of Equipment Delivery of Equipment will be made F.O.B. Point of Shipment, and Customer is responsible for all shipping costs. Shipping costs to a location in the U.S.,are as follows: (i) standard shipping costs are fixed at one (1%1 percent of Customer's total Purchase Price per Order, and (ii) all costs associated with premium shipping shall be home y Customer. Customer shall examine all Equipment and promptly notify AT&T of any defects upon receipt thereof. b. Customer acknowledges and agrees that AT&T's ability to provide Equipment during the term of this Agreement is contingent on the supply and delivery schedules of each of the Equipment manufacturers. Equipment purchased under this Agreement shall follow the shipment schedule as maintained by the Equipment manufacturer. AT&T does not accept liability for Equipment that is back ordered by the manufacturer. 8. CREDIT TERMS. a. Customer shall furnish to AT&T all financial information reasonably requested by AT&T from time to time for the purpose of establishing or continuing Customer's credit limit, it being understood that AT&T shall have the right to decline to extend credit to Customer and to require that the applicable Purchase Price be paid prior to shipment. AT&T shall have the right without notice to Customer, to change or revoke Customer's credit limit on the basis of changes in AT&T's credit policies or Customer's financial condition and/or payment record. b. Any obligation of AT&T under this Agreement to deliver Equipment or Services on credit terms shall terminate without notice if Customer files a voluntary petition under a bankruptcy statute, or makes an assignment for the benefit of creditors, or if an involuntary petition under a bankruptcy statute is filed against Customer, or if a receiver or trustee is appointed to take possession of the assets of Customer. c. Security Interest AT&T shall retain a purchase money security interest ('Security Interest"), as such term is defined in the Uniform Commercial Code, in each Equipment item purchased under this Agreement. This Security Interest shall remain in effect until the entire balance of the Equipment Purchase Price and all of the monies payable under this Agreement are paid in full. Customer further agrees to execute the documents necessary for AT&T to perfect its Security Interest. At its option. AT&T may file this Agreement or a copy with the appropriate state authorities as a financing statement to perfect its Security Interest. A financing statement may be filed without Customer's signature on the tesis of this security agreement where allowed by law. The unpaid Purchase Price will, at AT&Ts option, be immediately due and payable if the Equipment is damaged or destroyed, or if Customer resells removes or conceals the Equipment, or unreasonably refuses to accept delivery of the Equipment. Customer shall promptly pay all taxes and assessments upon the Equipment or its use. 9. LICENSE; SOFTWARE. a. Equipment Software associated with thepurchase of Equipment will be provided in accordance with the particular manufacturers standard software license which Customer is deemed to accept upon the receipt of the Equipment. b. Customer will treat all Equipment Software and documentation as Information, as defined herein. Customer may not transfer, disclose, sublicense or distribute Equipment Software and documentation to third parties or copy Equipment Software and documentation without the manufacturers prior written consent and in compliance with any terms of the manufacturers re -licensing policy. 10. WARRANTIES. a. Equipment and Software: The Equipment, Equipment Software, and Associated Services will be provided to Customer on an 'As Is' basis. (I) AT&T DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED (INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE). (ii) AT&T WILL NOT HAVE ANY OBLIGATION OR BE LIABLE FOR ANY ERROR, OMISSION, DEFECT, DEFICIENCY, OR NONCONFORMITY IN ANY EQUIPMENT OR EQUIPMENT SOFTWARE, OR ANY OF THE ASSOCIATED SERVICES. AT&T DOES NOT WARRANT THAT THE OPERATION OF EQUIPMENT WILL BE UNINTERRUPTED OR ERROR FREE. AT&T HAS NO WARRANTY OBLIGATION FOR EQUIPMENT OR EQUIPMENT SOFTWARE WHICH CUSTOMER ACQUIRES THROUGH AT&T AND EQUIPMENT THAT IS NOT MANUFACTURED BY AT&T, AND WHICH DO NOT BEAR AN AT&T LOGO OR COPYRIGHT NOTICE. Customer, not AT&T, is responsible for selecting Equipment to achieve its intended results and for promptly verifying that the Equipment performs as specified by manufacturer. b. Pass-through of Manufacturers Warranty. Notwithstanding tie disclaimer set forth in Section 10.a., AT&T shall make commercially reasonable efforts to pass through to Customer any warranties available from Equipment manufacturers. Please note that If the Equipment is manufactured by Cisco Systems, Inc., the CLIENT must refer to the following URL regarding warranty provisions: http://www.aft.com/solubonsAerms. 11. RETURNED EQUIPMENT. If Customer does not accept the Equipment, the Equipment should not be returned to AT&T. AT&T will obtain from the manufacturer and forward to Customer an RMA (Return Material Authorization). Customer and manufacturer will resolve all Version 10.1 Customer and AT&T Solutions Inc. Proprietary - Page 2 of 7 025 EQUIPMENT AND ASSOCIATED SERVICES AGREEMENT other issues between them. In cases of non -defective Equipment, a return or restocking fee may be applied for which Customer will be responsible. Return shipping costs (or other incremental charges) expenses will be the responsibility of Customer. 12. PATENT AND TRADEMARK INDEMNITY. AT&T SHALL HAVE NO DUTY TO DEFEND, INDEMNIFY, AND HOLD HARMLESS CUSTOMER FROM AND AGAINST ANY OR ALL DAMAGES AND COSTS INCURRED BY CUSTOMER ARISING FROM THE INFRINGEMENT OF PATENTS OR TRADEMARKS OR THE VIOLATION OF COPYRIGHTS BY EQUIPMENT. NOTWITHSTANDINGANY OTHER TERMS OR CONDITIONS TO THE CONTRARY, AT&T'S LIABILITY UNDER THIS SECTION SHALL NOT EXCEED THE PURCHASE PRICE OF THE INFRINGING EQUIPMENT. 13. LIMITATION OF LIABILITY. AT&T SHALL NOT BE LIABLE TO CUSTOMER, TO THE CUSTOMERS OF CUSTOMER, OR ANY OTHER PARTY FOR ANY LOSS, DAMAGE, OR INJURY WHICH RESULTS FROM THE USE OR APPLICATION BY CUSTOMER, CUSTOMER'S CUSTOMERS, OR ANY OTHER PARTY OF EQUIPMENT DELIVERED TO CUSTOMER, UNLESS THE LOSS OR DAMAGE RESULTS OISSIONS OF AT&T. IN NO EVENT SHALLLAT&T FROM E LII BLE TO CUSTOMER S OMER OR ANY OTHER PARTY FOR LO SE INTENTIONALLY TORTIOUS OR FRAUDULENT ACTS OR DAMAGE, OR INJURY OF ANY KIND OR NATURE ARISING OUT OF OR IN CONNECTION WITH THESE TERMS AND CONDITIONS, OR ANY AGREEMENT INTO WHICH THEY ARE INCORPORATED, OR ANY PERFORMANCE OR NONPERFORMANCE UNDER THESE TERMS AND CONDITIONS BY AT&T, ITS EMPLOYEES, AFFILIATES, AGENTS OR SUBCONTRACTORS, IN EXCESS OF THE NET PURCHASE PRICE OF THE EQUIPMENT ACTUALLY DELIVERED TO AND PAID FOR BY CUSTOMER UNDER THE ORDER THAT GAVE RISE TO THE LIABILITY. IN NO EVENT SHALL AT&T BE LIABLE TO CUSTOMER OR ANY OTHER PARTY FOR INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO LOSS OF GOOD WILL, LOSS OF ANTICIPATED PROFITS, OR OTHER ECONOMIC LOSS ARISING OUT THESEFOR IN TERMS ANDNECTION WITH CONDITIONS, EVEN SI FNOTIIFI NOTIFICATION FAILURE BEEN GIVEN OAS TO THE POSSIBILITY IN ACCORDANCE WITH ANY SUCH DAMAGES. CUSTOMER HEREBY EXPRESSLY WAIVES ANY AND ALL CLAIMS FOR SUCH DAMAGES. NEITHER PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING OUT OF OR RELATING TO: INTEROPERABILITY, INTERACTION OR INTERCONNECTION PROBLEMS WITH APPLICATIONS, EQUIPMENT, SERVICES OR NETWORKS PROVIDED BY THE OTHER PARTY OR THIRD PARTIES; AND EXCEPT AS OTHERWISE PROVIDED IN A SCHEDULE, UNAUTHORIZED ACCESS BY A THIRD PARTY OR LOSS OR DESTRUCTION OF THE OTHER PARTY'S OR THIRD PARTIES' APPLICATIONS, CONTENT, DATA, PROGRAMS, INFORMATION, NETWORK OR SYSTEMS. NOTHING IN THIS SECTION LIMITS CUSTOMER'S RESPONSIBILITY FOR THE PAYMENT OF CHARGES DUE AS PROVIDED IN THIS AGREEMENT. _ 14. COMPLIANCE WITH U.S. EXPORT LAWS. Customer acknowledges that the Equipment is controlled for export by the U.S. Department of Commerce and that the Equipment may require authorization prior to export from the United States or re-export. Customer agrees that it will not export, re-export, or otherwise distribute Equipment, or direct products thereof, in violation of any export control laws or regulations of the United States. Customer further warrants that it will not export or re-export, directly or indirectly, any Equipment to embargoed countries,including, but not limited to, Cuba, Libya, North Korea, Iran, Iraq, Sudan and Syria. Diversion of Equipment contrary to U.S. law is prohibited. 15. MANUFACTURER AND PUBLISHER RESTRICTIONS. All Equipment delivered to Customer hereunder may have additional restrictions on its use required by the manufacturer or publisher. Customer is solely responsible for ensuring its adherence to any and all such restrictions or requirements. 16. NEW YORK LAW. These terms and conditions (and any agreement into which they are incorporated) shall be interpreted in accordance with and governed by the laws of the State of New York and AT&T and Customer hereby consent to the jurisdiction of New York 17. ARBITRATION. If a dispute arises out of or relates to this Agreement or its breach that cannot be settled within twenty (20) business days through negotiation, either parry may submit the dispute to final binding arbitration. Such arbitration will be conducted by a single arbitrator who shall be designated by the CPR Institute for Dispute Resdution (CPR), unless otherwise agreed to by the parties, and in accordance with the CPR's arbitration rules. The arbitration will be held at a neutral site selected by the arbitrator. The arbitrator will determine issues of arbitrability, including the applicability of any statute of limitation, but may not limit, expend or otherwise modify the terms of the Agreement. The arbitrator will not have the power to order pre -hearing discovery of documents or the taking of depositions. The arbitrator may com pel the attendance of witnesses and production of documents at the hearing, to the extent provided by the United States Arbitration Act. The arbitrator's decision and award shall be in writing, setting forth the legal and factual basis therefore (except vith respect to the validity, infringement or misappropriation of airy patents or other proprietary rights of any party, where such award shall be without findings or any statement of legal or factual basis). The arbitrator may in appropriate circumstances provide for injunctive relief (including Version 10.1 Customer and AT&T Solutions Inc. Proprietary Page 3 of 7 lILi1J ATOT EQUIPMENT AND ASSOCIATED SERVICES AGREEMENT interim relief). An arbitration decision and award will not be subject to review because of errors of law. Each party shall bear its own expenses in connection with the arbitration. Expenses relating to the site d arbitration and the arbitrator's compensation will be bome equally. The parties, other participants and the arbitrator shall hold the existence, content and results of the arbitration in confidence, except to the extent necessary to enforce a final settlement agreement or to obtain and enforce a judgment on an arbitration award. This Section shall be governed by and enforced in accordance with the United States Arbitration Act. 18. ASSIGNMENT. Neither party may assign this Agreement without the other's prior written consent (which shall not be unreasonably withheld), provided, however, that AT&T may, without such consent, assign this Agreement in whole or in part to any of its affiliates, and Customer, with AT&Ts prior written consent, may assign its rights to purchase to a third party leasing company. 19. THIRD PARTY BENEFICIARY RIGHTS. No provision of this Agreement will in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person a third -party beneficiary of the Agreement or any of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto 20. BILLING. AT&T will send invoices to the primary billing address listed below: Billing Address: Cit: Contact Name: Contact Phone: State: Zip: Contact Title: Contract Email: EXEMPTION CERTIFICATES, VALID IN THE PLACE OF DELIVERY, MUST BE PRESENTED TO AT&T PRIOR TO OR WITH AN ORDER TO RECEIVE EXEMPTION STATUS. 21. USE OF INFORMATION. Customer shall treat all information received hereunder or in connection with this Agreement as confidential and use such information only as under this Agreement ('Information"). Information shall be both tangible and Intangible forms of information, including, but not limited to, List Price and Customer Discount. The restrictions in this Section shall not apply to any information that is: (i) independently developed by the receiving party; (it) lawfully received by the receiving party free of any obligation to keep it confidential; or (iii) becomes generally available to the public other than by breach of this Agreement. 22. SURVIVAL OF TERMS. Any term in this Agreement which by its nature extends beyond the termination, cancellation or expiration of this Agreement shall survive such termination, cancellation or expiration. 23. ENTIRE AGREEMENT. This Agreement, including Schedule A, is the entire understanding between Customer and AT&T with respect to the subject matter. In the event of any conflict between Schedule A and the Agreement, Schedule A shall have precedence. No modifications waiver or amendment to this Agreement or Schedule A shall be effective unless it is in writing and signed by authorized representatives from both the Customer and AT&T. AT&T reserves the right at its sole discretion to modify the discount schedule and other Terms and Conditions of this Agreement and Schedule A. IN WITNESS WHEREOF, the parties have executed this Agreement on the respective dates entered below. AT&T Solutions Inc. ("AT&T') ('Customer") (Signature)(Signature) (Name Typed or Printed Legibly) Telephone Number Name Typed or Printed Legibly) (Title) Telephone Number Version 10.1 Customer and AT&T Solutions Inc. Proprietary Page 4 of 7 027 0 A EQUIPMENT AND ASSOCIATED SERVICES AGREEMENT THIS AGREEMENT DOES NOT BIND OR OBLIGATE EITHER PARTY IN ANY MANNER UNLESS DULY EXECUTED BY AUTHORIZED REPRESENTATIVES OF BOTH PARTIES Version 10.1 Customer and AT&T Solutions Inc. Proprietary Page 5 of 7 IU$T EQUIPMENT AND ASSOCIATED SERVICES AGREEMENT SCHEDULE A ENGAGEMENT TERMS FOR EQUIPMENT AND ASSOCIATED SERVICES This Schedule A, Engagement Terms for Equipment and Associated Services ("Schedule A"), is an attachment to the Equipment and Associated Services Agreement between AT&T Solutions Inc. and ("Customer"), dated ("Agreement") and is an integral part of that Agreement. Terms capitalized in this Schedule A, but not defined herein shall take the meaning given to them in the Agreement as designated for each term. 1.1 GENERAL ENGAGEMENT TERMS The following terms and conditions shall apply for the procurement of Equipment and Associated Services from AT&T. 1.2 HARDWARE/SOFTWARE PRICING All pricing for resale under this Agreement will be determined as defined in the Agreement. 1.3 EXPEDITE CHARGES Customer will incur an uplift charge equal to three (3%) percent of the List Price and/or Purchase Price, whichever is applicable, for any Order requiring expedited shipment. 1.4 ITEM DELIVERY SCHEDULE Items purchased under this Agreement are to follow the shipment schedule as maintained by the Equipment manufacturer. AT&T does not accept liability for items that are back ordered by the manufacturer. 1.5 PROCEDURES AT&T and Customer agree to follow standard procedures and to strive to minimize the amount of processing effort required. 1.6 ORDERACCEPTANCE AT&T will provide Customer with notification by agreed upon method (email) accepting the Order after validation. AT&T will process all Orders within five (5) business days of receipt of standard Orders and within one (1) business day of receipt for expedited Orders. 1.7 ORDER SHIPMENT The Customer point of contact is to notify AT&T to validate that the items have been received and to accept delivery of such items. Customer will assume any storage charges in the event that Customer requires storage facilities for the Equipment. Customer shall hold AT&T innocent of any and all liability arising from the transfer and storage of Customer Equipment. 1.8 CUSTOMER REQUEST TO PROCESS ORDER Customer shall provide Orders to AT&T that specify the following information: a. A reference to the Agreement. b. Customer's legal entity name. C. Customer's internal number used to identify and track Orders. d. Billing address if different than shipping address. e. Copy of ta>Eexempt status. f. Specify Expedited Shipment, if applicable. g. Shipping Address. Shipping address where items on Order are to be shipped. All items purchased on an Order are to be shipped to the one (1) shipping address listed on that Order. h. Customer Point of Contact Information. Name, email address, and telephone number of the point of contact authorized by Customer to receive the Order items at the ship -to address specified on the Order. i. Alternate Point of Contact Information. Name, email address, and telephone number of an alternate point of contact authorized to receive the items purchased if the primary Point of Contact is unavailable to receive shipment. j. Nomenclature of Item(s) Purchased. Product name used by the manufacturer to identify that Equipment item. k. Part Number of Item(s) Purchased. Part number or other identifying number used by manufacturer to identify that Equipment item. I. List Price of Item(s) Purchased. Manufacturer's List Price in effect upon receipt of an Order by AT&T. The List Price will be validated by AT&T. M. Customer's Purchase Price of Item(s). List Price minus the applicable Customer Discount. n. Total Value of Order. Summation of Purchase Price(s) for Customer items and any applicable charges contained in the Order, e.g., uplift fee for expedited shipment as under Section 1.3. o. Desired Delivery Date. Projected delivery date from Customer which is provided to the manufacturer solely for the purpose of assisting the manufacturer in planning production. The Customer's delivery date does not obligate AT&T nor the manufacturer to a speck delivery date. 1.9 PURCHASE TARGET In consideration for the Customer Discount(s) set forth in this Schedule A and during the term of the Agreement, Customer Version 10.1 Customer and AT&T Solutions Inc. Proprietary Page 6 of 7 029 j EQUIPMENT AND ASSOCIATED SERVICES AGREEMENT k: agrees to target direct procurement from AT&T at a minimum of $ of Equipment and Associated Services ("Purchase Target"). AT&T reserves the right to adjust the Customer Discount annually upward or downward based on whether Customer attains . the Purchase Target. 2.1 TABLE OF CHARGES AT&T will provide the Customer Discount rate as listed below. The table reflects the Customer Discount applied to the List Price and/or Price in effect at the time the Customer's Order is received by AT&T. AT&T reserves the right to modify the Customer Discount and other terms and conditions of the Agreement and Schedule A. The price of the equipment is as stated on the Connected Entity Order Form. Version 10.1 Customer and AT&T Solutions Inc. Proprietary Page 7 of 7 030 Connected Entity Order Form 1. AT&T Access Circuit Verify current local access and port speed 'See Transport Service Section below for further information. Check box and verify current access speed if Access Services are desired. 2. AT&T Managed Services 'See Managed Services Options 1-10 below for services and router types available. Please note desired option in box. Managed Services available only if AT&T Access is ordered. 3. Router procurement and installation only. No AT&T Managed Services. 'Can choose from any of the router configurations listed under Managed Services Options. Please note desired option in box. May still order AT&T Access Circuit. 4. No service provided by AT&T Verify current local access and port speed 'If no AT&T Service is chosen, CE will be required to utilize and alternate local access vendor to connect to the NGN Network. 'Cover sheet information still necessary for migration purposes. Transport Services: Annual nit Price Monthly Unit Price Access Circuit Type 56K $ 2,700.00 $ 225.00 Access Circuit Type 1544K $ 4,800.00 $ 400.00 Secure IP dial access @ 3.50 per hour NA NA 'It Is expected that the Connected Entity will access the NGN at the same speed they currently use to the connect to the ISO. The circuit order will be placed based on the current speed listed above. 'The Installation costs for these circuit types varies from area to area and can be outlined Individually as the Connected Entity signs up for service. 'Note, associated port and PVC to be purchased and pald for by CAL ISO AT&T Confidential 1 031 wtr------ J C......: w.. f%n*!^na• trlallaycu vc1 v1 ...+p..-�..- Equipment & Nce Install Equipment & Remote router with T1/FT1 CSU WIC, BRI dial backup $2,908.75 Install Monthly Management and Maintenant*e Charge Option 1 - Site Type 1 Remote router with 56K DSU WIC, no dial backup $2,225.32 $145.12 WIGIDSU-TI-1-Port T1/Fractional T1 DSU/CSU WAN Interface Card Includes the following: CISCO1751 - 10/100 Modular Router wl 3 slots, IOS IP, 16F/32D CAB -AC - Power Cord,110V WIC -1 DSU -56K4 - 1 -port 4 -WIRE 56164 KBPS WAN INTERFACE CARD S17G12205 - Cisco 1700 Ser IOS IP 3CP3453 - US Robotics Courier v.everything modem Equipment & Option 2 - Site Type 2 Install Monthly Management and Maintenance Charge router with T1/FT1 CSU WIC, no dial backup $2,430.35 $148.75 es the following: 1 7 51-1 011 0 0 Modular Router w/ 3 slots, IOSGPower Cord,110VDSU-TI-1-Port FRemote ICSU WAN Interface Card12205-Cisco T1/Fractiona2KBPS'A'AAmN'N�PEQPAA('r 1700 Ser IOS 53 -US Robotics Courier v.emodem - Equipment & Option 3 - Site Type 3Install Monthly' Management and Maintenance Charge Remote router with 56K DSU WICbackup $2,703.721$153.60 Includes the following: CISCO1751-101100 Modular Routts, JOS IP, 16F132D CAB -AC -Power Cord, 110V WIGIDSU-56K4-1-port 4 -WIRE S WAN INTERFACE CARDWIC-16-U-1-Port ISDN with14T-1face Card(dial and leased line)S17G12205-Gsco 1700 Ser IOS 3CP3453-US Robotics Courier v.everything modem AT&T Confidential 2 032 Equipment & Option 4 - Site Type 4 Install Monthly Management and Maintenance Charge Remote router with T1/FT1 CSU WIC, BRI dial backup $2,908.75 $157.23 Includes the following: CISCO1751-10/100 Modular Router w/ 3 slots, IOS IF, 16F/32D CAB -AC -Power Cord,11UV WIGIDSU-TI-1-Port T1/Fractional T1 DSU/CSU WAN Interface Card WIG18-U-1-Port ISDN withNT-1 WAN Interface Card(dial and leased line) S17G12205-Cisco 1700 Ser IOS IP 3CP3453-US Robotics Courier v.every0dng modem AT&T Confidential 2 032 Option 5 - Site Type 5 Equipment & Install I Monthly Management and Maintenance Charge Remote router with BRI as the primary link $2,908.751 NA Includes the following: CISCOI751-10/100 Modular Router wl 3 slots, IDS IP, 16F/32D CAB-AC-Power Cord,110V WIC-1 DSU-TI-1-Port T1/FracOonal T1 DSU/CSU WAN Interface Card 1W-IC-1B-U-1-Port ISDN withNT-1 WAN Interface Card(dial and leased line) S17C-12202s 0 1700 Ser IOS IP 3CP3453-US Robotics Courier v.everything modem Option 6 Equipment & Install - Monthly Management and Maintenance Charge Management & Maintenance Only I NA $157.23 Option 7 - Site Type 8 Equipment & Install Monthly Management and Maintenance Charge Remote router with 56k link and 16 asynch ports $ 4,138.93 $179.06 CISCO2610XM - 10/100 Ethernet Router w/Cisco IOS IF CAB -AC -Power Cord,110V S26C-12208T Cisco 2600 Series ISO IF NM -16A - 16 port Asynchronous Module WIC-IDSU-56K4- 1-port4 WIRE 56/64 KBPS WAN INTERFACE CARD MEM2600XM-32D-INC - 32MB DRAM Memory factory default for the Cisco 261x/2xXM MEM260OXM-16FS-INC - 16MB Flash factory default for the Cisco 260OXM 3CP3453-US Robotics Courier v.everything modem - Option 8 - Site Type 9 Equipment 8 Install Monthly Management and Maintenance Charge Remote router with TI/FTI link and 16 asynch ports $ 4,343.96 $182.70 CISCO261 OXM - 101100 Ethernet Router w/cisco IDS IF CAB -AC -Power Cord,110V S26C-122087 Cisco 2600 Series ISO IF NM -16A -16 port Asynchronous Module WIC -1 DSU -T1 -1-Port T1/Fractional T1 DSU/CSU WAN Interface Card MEM2600XM-32D-INC - 32MB DRAM Memory factory default for the Cisco 261x/2xXM MEM260OXM-16FS-INC - 16MB Flash factory default for the Cisco 260OXM 3CP3453-US Robotics Courier v.everything modem AT&T Confidential 3 033 Option 9 -Site Type 10 Remote router with 56k link, 16 asynch ports. BRI dial backup Equipment & Install $ A QA33 Monthly Management and Maintenance Charge $187.54 CISCO2610XM - 10/100 Ethernet Router w/cisco IOS IP CAB -AC -Power Cord, 110V S26C-12208T Cisco 2600 Series ISO IP NM -16A - 16 port Asynchronous Module WIC-IDSU-56K4 - 1 -port 4 WIRE 56/64 KBPS WAN INTERFACE CARD WIC -IB -U - 1 -Port ISDN with NT A WAN Interface Card(dial and leased line) MEM2600XM-32D-INC - 32MB DRAM Memory factory default for the Cisco 261x/2xXM MEM2600XM-16FS-INC - 16MB Flash factory default for the Cisco 2600XM 3CP3453-US Robotics Courier v.everything modem Equipment & Option 10 - Site Type 11 Install Monthly Management and Maintenance Charge Remote router with T1/FT1 link, 16 asynch ports, BRI dial $ 4,822.36 $191.18 backup CISCO2610XM - 10/100 Ethernet Router w/cisco IDS IP CAB -AC - Power Cord, 110V S26C-12208T Cisco 2600 Series ISO IP NMA 6A - 16 port Asynchronous Module WIC-IDSU-T1 - 1-PortT1/Fractional Tt DSU/CSU WAN Interface Card WIC -1 B -U - 1 -Port ISDN withNT -1 WAN Interface Card(dial and leased line) MEM2600XM-32D-INC - 32MB DRAM Memory factory default for the Cisco 261x/2xXM MEM2600XM-16FS-INC - 16MB Flash factory default for the Cisco 2600XM 3CP3453-US Robotics Courier v.everything modem If the manufacturer of any of the components adjusts the component list price or the current AT&T discount, Equipment Charge will be reviewed and the Charges will be adjusted accordingly. 'If the Equipment component lists in Schedule 7 are changed or the manufactures list price changes the Maintenance Charges will be reviewed and, as appropriate, the Charges will be adjusted utilizing the pricing and discount methodology applied to arrive at the Maintenance Charge stated above. -AT&T will use commercially reasonable efforts to provide the service chosen within 45 days. AT&T Confidential 4 034 Attachment 1 to Schedule 7 FORM OF CONNECTED ENTITY ACCESS SERVICES AGREEMENT AT&T Corp. ("AT&T") agrees to provide to Connected Entity (as defined below) the AT&T service(s) (the "Service" or the "Services") selected in this Agreement at the rates and under the terms and conditions set forth herein. Except as provided for in this Agreement, the Services shall be subject to the terms and conditions set forth in the AT&T Business Service Guide located at and the AT&T standard contract at www.af.com/business/agreement In the event of a conflict between this Agreement and either of the foregoing, this Agreement controls. CONNECTED ENTITY HAS READ AND UNDERSTANDS THE TERMS AND CONDITIONS OF THIS SERVICE AGREEMENTAND AGREES TO BE BOUND BY THEM. AT&T CORP. 55 Corporate Drive Bridgewater, NJ 08807 FAX: AT&T Signature: Name: [NAME OF CONNECTED ENTITY] [CONNECTED ENTITY ADDRESS] FAX: Connected Entity Signature: . Name: Title: Title: Date: Date: Notice: This Agreement will not be effective until accepted by AT&T and is subject to AT&T's credit approval of Connected Entity. AT&T / CAL ISO Confidential 1 035 TERMS AND CONDITIONS Definitions. "Connected Entity" or "CE" refers to the customer set forth above. The "Agreement" refers to this agreement by and between Connected Entity and AT&T. The "Effective Date" is the date when this Agreement is executed by both parties. "AT&T" shall refer collectively to AT&T Corp. and to AT&T Solutions, Inc., a wholly owned subsidiary of AT&T. AT&T Solutions, Inc. will provide managed services and resale of equipment under this Agreement. AT&T Corp. will provide all other services under this Agreement. 2. Provision of Services: Rates and Charges. AT&T shall provide the Services to Connected Entity at the rates and charges as set forth in Attachment 6 "CE Pricing", to this Agreement, as it may be modified from time to time. Connected Entity is responsible for submitting the Order Form attached as Attachment 3 ("Order Form") directly to AT&T. Orders are considered firm at the time that AT&T accepts the Order Form Connected Entity agrees to provide additional provisioning information to AT&T, as necessary, to implement the Services. 3. CE Site Audit: For those CEs using AT&T managed services, the individual CE shall, within 30 days after both parties sign this Agreement (a) complete a Site Survey/Audit form or (b) arrange for AT&T to conduct the Site Survey at CE's expense. If AT&T determines, from the information provided in the completed Site Audit Form, that a significant amount of the data is in error or missing, then AT&T may be required to perform the Site Audit and charge the CE. See Attachment 7 "CE Statement of Work" for further detail on Site Audit. See Attachment 2 for Site Audit Charges. 4. Additional terms related to access service: The AT&T Service Guide posted at http://www.att.comiserviceguide/businesscontains service descriptions and other additional terms pertaining to the circuits provided by AT&T and is considered part of the Agreement. 5. Invoice and Payment. Connected Entity shall participate in the Location Account Billing Option ("LABO") offered by AT&T. Connected Entity agrees to pay all charges incurred by Connected Entity in relation to the Services set forth on the Order Form. Charges shall be invoiced monthly and payment shall be due within 30 days of the date of the invoice. Connected Entity shall pay all sales and usage taxes arising in connection with the Services. 6. Special Construction Service. If AT&T, the local exchange carrier (LEC), or other local access carrier determines that special construction is required to connect Connected Entity to the California Independent System Operator Corporation's Energy Communications Network ("ECN"). Connected Entity may request Special Construction Service. AT&T shall, within twenty (days) of the AT&T / CAL ISO Confidential 2 request, provide Connected Entity with an estimate of the costs associated with Special Construction Service and, if acceptable, Connected Entity shall accept the Special Construction Costs and direct AT&T to proceed with the work. 7. Term. The term of Service (the "Term") is four (4) years or as long as the ECN is available, whichever is longer, provided, however, that Connected Entity may, after one year, terminate service upon sixty (60) days prior written notice to AT&T without liability except for payment for services received prior to the date of termination. If Connected Entity terminates Service before the first anniversary of the Effective Date, Connected Entity shall pay AT&T the amount of the waived installation charge together with charges for services received prior to the date of termination. Billing begins following installation. 8. Connected Entity shall assure that its use of the Services and content of communications by Connected Entity and those who access or use the Services purchased by Connected Entity ("Users") will at all times comply with all applicable laws, regulations and instructions for use. "Content" includes information made available, displayed or transmitted in connection with the Services. No actions or inaction by AT&T shall constitute review or approval of Connected Entity's or its Users' use or content. If Connected Entity suspects that the Services have been fraudulently used, you must immediately notify AT&T. 9. If AT&T does not receive payment by the due date, Connected Entity may be charged interest on any unpaid balances at the rate of up to 1 1/2% per month or the maximum rate allowed by law. 10. AT&T may terminate Services provided to Connected Entity for failure to pay AT&T charges when due, or for suspected fraud, abuse or misuse of the Services. 11. Billing Disputes. IF CONNECTED ENTITY DISPUTES CHARGES ON ITS BILL, CONNECTED ENTITY MUST NOTIFY AT&T IN WRITING OF THE DISPUTE WITHIN SIX (6) MONTHS OF THE DATE ON THE AFFECTED BILL, OR ELSE CONNECTED ENTITY WAIVES THE DISPUTE. 12. Notice. All notice or other communications required or permitted hereunder shall be in writing, delivered personally or by facsimile, electronic mail, registered mail or an overnight delivery service that guarantees next -day delivery, to the addresses set forth above. All notices shall be deemed effective upon receipt. 13. Miscellaneous 13.1 In the event that any portion of. this Agreement is held to be unenforceable, the unenforceable portion shall be construed in accordance with applicable law as nearly as possible to reflect the original AT&T / CAL ISO Confidential 3 037 intentions of the parties and the remainder of the provisions shall remain in full force and effect. 13.2 Either party's failure to insist upon or enforce strict performance of any provision of this Agreement shall not be construed as a waiver of any provision or right. Neither the course of conduct between parties nor trade practice shall act to modify any provision of this Agreement. 13.3 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of law provisions. 13.4 Any cause of action Connected Entity may have with respect to the Services must be commenced within one (1) year after the claim or cause of action arises or such claim or cause of action is barred. 14. Connected Entity understands and agrees that AT&T's ENTIRE LIABILITY AND A CONNECTED ENTITY'S EXCLUSIVE REMEDIES, FOR ANY CLAIMS ARISING UNDER THIS AGREEMENT SHALL BE LIMITED TO PROVEN DIRECT DAMAGES NOT TO EXCEED PER CLAIM (OR IN THE AGGREGATE DURING ANY TWELVE (12) MONTH PERIOD) AN AMOUNT EQUAL TO THE TOTAL NET PAYMENTS MADE BY CONNECTED ENTITY FOR THE AFFECTED SERVICE DURING THE THREE (3) MONTHS PRECEDING THE MONTH IN WHICH THE DAMAGE OCCURRED. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, RELIANCE OR SPECIAL DAMAGES, INCLUDING WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS, ADVANTAGE, SAVINGS OR REVENUES OF ANY KIND OR INCREASED COST OF OPERATIONS. AT&T SHALL NOT BE LIABLE FOR ANY DAMAGES ARISING OUT OF OR RELATING TO: INTEROPERABILITY, ACCESS OR INTERCONNECTION OF THE SERVICES WITH APPLICATIONS, EQUIPMENT, SERVICES, CONTENT OR NETWORKS PROVIDED BY ANYONE OTHER THAN AT&T; SERVICE LEVELS, DELAYS OR INTERRUPTIONS (EXCEPT WHERE A CREDIT IS EXPLICITLY SET FORTH IN THE AT&T SERVICE GUIDE) OR LOST -OR ALTERED MESSAGES OR TRANSMISSIONS; OR, UNAUTHORIZED ACCESS TO OR THEFT, ALTERATION, LOSS OR DESTRUCTION OF CONNECTED ENTITY, USERS' OR THIRD PARTIES' APPLICATIONS, CONTENT, DATA, PROGRAMS, INFORMATION, NETWORK OR SYSTEMS. AT&T MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. This Agreement, which includes the AT&T Service Guide, constitutes the Entire Agreement between Connected Entity and AT&T, with respect to the Services. AT&T / CAL ISO Confidential 4 M, Azusa Utility Board Meeting February 24, 2003 A -Y,- - C) A SA CD W LIGHT S WATER AZUSA LIGHT 6 WATER ry IP" Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update 4 AERM, M 0 as Status of Proj ects Short --term Resource .Flan Preparation and Execution — Completed short-term resource plan (Q2 & Q3 CY03). See attached memorandum. — In the process of executing the plan New Distribution Substation Negotiations with Edison — Edison is procrastinating the engineering design — Ever escalating cost of the interconnection work by Edison — Terms and conditions of the service agreement remain unjust and reasonable — Prepared options paper for management consideration — Exploring regulatory options to facilitate the process FERC Settlement of C'ite's Transmission Revenue Requirement (TRR) — Coordinating the process to respond to several data request • Renewable Ener Completed the review and commented on the windpower contract with PacifiCorp. SCPPA members are expected to decide within the next two months whether the critical mass has been achieved to execute the agreement. CAISO New Rules and Enforcement Actions — CAISO is planning to implement a system of financial penalties to discourage abuses and non-compliance with the CAISO Tariff — The City may be impacted by the penalties of firm load shedding. See attached memorandum for details — Staff will put in place the appropriate operating procedures to ensure timely compliance with CAISO operating orders and therefore avoid financial penalties. E - .,_ 11 _..... CITY O 11 F AZUSA ENERGY CONSUMPTION COMPARI SO N FY01-02 FY 02-03 ---- _ "— PERCENT —.. . MONTH FY 01-02 �J FY 02-03 CHANGE JUL 21 524 23 581 I .,,..,.-„ 9.56%, o __ AUG -.. 22 908 ...-. 22.502 j ...._ _ 1.77 /0 SEP 21 242 23 047 i 8.50% OCT ,._, 20.485 _. 20,290 t 18,5771A.....' ( 1.22%!. NOV 18,3530 18,430 18 784 f .... - 1.92%1 DEC JAN ..-. (18,882 i . 19 535 1 i ._ 3.46 /o , FEB .._. DEC ... �.- JAN ( ...... _ MAR L. MAR-.. MAY ... i_... _ _ JUN TOTAL ! 141,824 ...-._ .......... 146,317 .._. ° . :RGY CONSUMPTION IN NIWH CITY OF AZUSA PEAK DEMAND COMPARISON — MONTH FY01-02 FY 02-03 CHANGE 46 6 52.0 11.59%,. r f JUL 46 9 .. 48.4 3.3 0 o 1 AUG I 47 4 ... 54.1 14.18 j. SEP {.. 504 44.0 '.. ° -12.65 /o OCT.. i ..... _...... 36.2 ... _.... 38.9 :............. 7.33%I NOV .. 34.0 34.4 1.02% r 4h. DEC ... �.- JAN 341 ,. 36.5 ,... 7.16% L. MAR-.. APR J.. JUN ( PEAK DEMAND IN MW MONTH JAN 02 FEB02 .................. ... MAR 02 - . .. ..... ............... - APR 02 111 ............. . . - MAY 02 ........ . . .- JUN 02 JUL 02 AUG 02 SEP 02 OCT 02 NOV 02 DEC 02 JAN 03 FEB 03 . .. ........ . ....... .. .. .. .... ...... . $11.26_' AVERAGE $30.96 AVERAGE .. .. .. ...... -I ----- ----- ------ ON PEAK PRICE $20.89; OFF PEAK PRICE $23.00 $32.59 $16.00 $39.25 $29.17 $27.94 $17.00 $34.00 $28.00 .... . .. ... ....... ....... ............... . ... ..... ...... . $17.00 $26 59 $15.05 i 32.20 $11.26_' $38.73 $15.701 $30.96 $18.08 $31.52 $20.89; $32.97 $22.04 $32.59 $24.53 $39.25 $29.17 $27.94 $39.13 ALL PRICES IN $/MWH -------- --- ---- --- - ...... . ... ------------- --- -- --- ........ . .. . . ...... - - ----- --- ------------- -- --- - - - ------ .. . ......... ....... .... .. Power Resource Cost Accounting FY '02-'03 9� MEMORANDUM TO: Joe Hsu FROM: Bob Tang, Richard Torres, Tim Vuong SUBJECT: RESOURCE PLAN FOR Q2 AND Q3 2003 PROBLEM STATEMENT: The City has procured sufficient power resources to meet its forecast load requirements for Q2 and Q3 of this year. The following are the available resources: San Juan: Palo Verde: Hoover: BPA (Jun -Sept): Total: 30 MW round the clock 2 MW round the clock 4 MW peaking 12 MW summer peaking 48 MW The following are the issues we have to deal with in the upcoming quarters: 1. The transmission path for San Juan resource (from Palo Verde Hub to Southern California) is anticipated to be heavily congested, as shown by the high clearing price for the FIR being auctioned off this year, more than $10/MWh. 2. The wholesale power prices for the coming quarters are the highest in Southern, with other trading hubs in the Northwest and Southwest at a considerable discount of about $10/MWh for Q2 and Q3. 3. Our San Juan power is unit contingent, making it very hard to market unless heavily discounted in price. 4. We have limited access to Palo Verde Hub for a portion of our San Juan, about 10 MW of access (see the attached map for trading hub locations, Attachment A). 5. We have limited access to the Northwest market through our transmission contract with Edison about 10 MW at COB and 12 MW at NOB (see the attached map for trading locations, Attachment A). 045 The problem we want to solve is stated as follows: We want to minimize the costs of serving our load requirement by utilizing our existing power resources and transmission access while taldng into account the price volatility, transmission congestion problems credit risks, and operational feasibility. PROPOSED STRATEGY: The staff recommends the following strategy: Step 1: To enter into a firming arrangement for San Juan similar to our current firming arrangement with Coral Power at the lowest possible cost. The difference of the new strategy is to receive the firm power from the counterparty at Palo Verde Hub instead of in Southern California. This is due to the fact that wholesale power prices in Southern California are $10/MWh more than prices at Palo Verde Hub. Step 2: Sell two-thirds (20 MW) of San Juan so firmed up at Palo Verde Hub to creditworthy counterparties by entering into fixed priced forward contracts. This step is recommended due to our transmission access limitation from Palo Verde Hub in as previously mentioned and to avoid transmission congestion problems. Step 3: Purchase 10 MW of firm power at either COB or NOB to serve Azusa's load requirement. It is expected that if prices at COB or NOB are about the same than at Palo Verde Hub, then we can essentially "virtual wheel" our power at Palo Verde Hub to either COB or NOB, trading hubs which we have access to "bypass" the transmission congestion problems at Palo Verde. Step 4: Purchase 10 MW of firm power at Westwing to serve Azusa's load requirement. It is expected that if prices at Westwing are about the same or slightly higher than at Palo Verde Hub, then we can essentially "virtual wheel" our power at Palo Verde Hub to Westwing, a trading hub which is expected to have less transmission congestion problems. , ECONOMIC ANALYSIS: The attached graphs (Graphs 1 A — IE) represent the graphical representation of per unit costs of several scenarios based on the market information staff has gathered so far which represents the current market conditions. The explanation of the scenarios is as follows: Scenario 1: Sell San Juan power on a unit contingent basis at 12.5% discount and implement the Step 2 through 4 above. Scenario 2: Sell San Juan power on a unit contingent basis at 15% discount and implement the Step 2 through 4 above. Scenario 3: Firm up San Juan power with a similar arrangement currently with Coral and implement the Step 2 through 4. The sub scenarios in Scenario 3 differs in the degree of spot market price volatility in case San Juan is forced out and we need to incur replacement power costs Scenario 4: Sell San Juan power on a unit contingent basis at 10% discount and implement the Step 2 through 4 above. RESULT: Based on the graphs it appears that Scenario 3, which surmises staff's recommended strategy presents the lowest cost strategy under a wide range of San Juan availability % AND spot market volatility range. RECOMMENDATION: Staff recommends we implement the strategy described above as represented by Scenario 3. Since there are several pieces we need to put in place, i.e., (1) the San Juan fuming arrangement; (2) the sales at Palo Verde Hub; and (3) the purchase at COB, NOB, and/Westwing, staff seeks the authority to implement the strategy within the parameters as described above immediately. WORD OF CAUTION: 1. The recommended strategy DOES NOT MITIGATE the exposure to spot market volatility inherent when San Juan unit is forced out. 047 2. The recommended strategy DOES NOT MITIGATE any unforeseen patterns of transmission congestion at COB, NOB, or Westwing. However, since the City, does have some degree of protection against transmission congestion at those trading hubs, the calculated risk we are recommending is probably the best we can conceivably do at this time. ME Scenario Descriptions for Firming San Juan Output Scenario l: This scenario directs all the unit contingent output (30 MW) of Azusa's San Juan Unit 3 Entitlement to be sold at an average discount of 12.5% of the prevailing forward Palo Verde (Southwest hub) prices. It then calls for the purchase of a firm amount of 30 MW at points of interconnection where Azusa has transmission fights to. The following graphs assume different price premiums at different points of interconnection. Scenario 2: This scenario directs all the unit contingent output (30 MW) of Azusa's San Juan Unit 3 Entitlement to be sold at an average discount of 15% of the prevailing forward Palo Verde (Southwest hub) prices. It then calls for the purchase of a firm amount of 30 MW at points of interconnection where Azusa has transmission rights to. The following graphs assume different price premiums at different points of interconnection. Scenario 3: This scenario directs all the unit contingent output (30 MW) of Azusa's San Juan Unit 3 Entitlement to be exchanged for a firm amount of 30 MW at Palo Verde. Azusa must then arrange to market and arrange for delivery of 30 MW of firm power at points of interconnection it has rights to. The following graphs assume different price premiums at different points of interconnection. Coral Power has provided an indicative fee of $1.75 per MW for this service. In the event of a unit derate or outage, Azusa would be obligated to compensate Coral Power for the power the unit did not produce (replacement energy) at a daily Palo Verde index price. This creates the uncertainty in daily price indexes which are unknown today. Thus this scenario has further sub -scenarios to stress different circumstances where Azusa would have to compensate Coral Power for replacement energy. The sub -scenarios are as follows: Scenario 3A: In the event replacement energy at the time of potential unit derate was: 10% lower than current forward prices Scenario 3B: In the event replacement energy at the time of potential unit derate was: 109/6 higher than current forward prices Scenario 3C: In the event replacement energy at the time of potential unit derate was: 20% higher than current forward prices . Scenario 313: In the event replacement energy at the time of potential unit dente was: 300/6 higher than current forward prices Scenario 3E: In the event replacement energy at the time of potential unit derate was: flat to current forward prices Scenario 4: This scenario directs all the unit contingent output (30 MW) of Azusa's San Juan Unit 3 Entitlement to be sold at an average discount of 100/6 of the prevailing forward Palo Verde (Southwest hub) prices. It then calls for the purchase of a firm amount of 30 MW at points of interconnection where Azusa has transmission rights to. The following graphs assume different price premiums at different points of interconnection. 050 Graph 1A No Price Premiums @ Other Tie Points $25.00 $20.00 $5.00 60% 65% 70% 75% 80% 85% 90% 95% 100% SJ Availability 051 $30.00 $25.00 $20.00 $15.00 L) $10.00 $5.00 Gratph 1 B 5"h Price Premlurn @ Other Tie Points I 60% 65% 70% 75% 80% 85% 90% tib% luux SJ Avallability 052 a I Graph 1 C ' 053 Graph l D 054 Graph 1 B 055 Page 1 of 1 From: Bob Tang [btang@ci.azusa ca.us] Sent: Wednesday, February 05, 2003 11:00 AM To: 'Dave ramirez; 'dkjar@ci.azusa.ca.us; 'Joe hsu; 'Rick Cole' Cc: 'Bob Tang (E-mail)'; 'Richard Torres (Richard Torres);'tvuong@ci.azusa.ca.us' Subject: CAISO Oversight and Enforcement Protocol TO ALL: The CAISO Board recently approved the Oversight and Enforcement Protocol in the CAISO markets. The Protocol is intended to prevent market t rules. requires our tten on Is penalty ssinpcase nof fa/u eo following lo o comply with Operating Order t One Curtailaspect Protocol which Firm Load. The attached Appendix A lists the type of penalties, penalties under EP 4.1.4 related to failure to curtail firm load in case ISO directs to do so are (1) up to $110,0001event plus other applicable by the Reliability Councils; plus (2) $1000/MWh for each MWH not curtailed. CAISO will file the Protocol to FERC for approval. Upon FERC's approval it will become effective. I will keep you informed of the FERC process. Given this Protocol is likely to become effective shortly, it is advisable the management and the operational staff understand the significance of complying or non-compliance to ISO Operational Order and put the appropriate operating procedures and decisional authorities in place in order to operate under the Protocol. Thank you Bob Tang 056 fila:I/X:\Utility%20Board%20Meeting\February%2024%202003%20UB%20Meeting\CAISO%20Oversi... 2/18/2003 ., APPENDIX A ISO Enforcement Protocol Penalties Market Rule and Behavior Subject to Penalty Administrative Penalties' Formula -Based Penalties EP 3.1. Comply with Operating Orders EP 4.1.1. Failure to Comply with an Operating Up to $10,000/Event, plus Up to average hourly MCP for Energy applied to Order. Allocation of WECC RMS amount of Energy not provided as direct result of EP 4.1.2. Failure to Start a Generating Unit for Penalty if such a penalty is failure to comply with ISO Operating Order. Which a Must -Offer Waiver is Revoked, issued to ISO by WECC. EP 4.1.3. Operation or Maintenance Practices that Up to $110,000/Event, plus Up to average hourly MCP for Energy applied to Prolong or Contribute to an Outage. Allocation of WECC RMS amount of Energy not provided as direct result of Penalty if such a penalty is failure to comply with ISO Operating Order. Issued to ISO by WECC. EP 4.1.4 Failure by a UDC to Comply with an ISO Up to $110,000/Event, plus Up to $1000/MWh for Energy applied to amount of Operating Order to Curtail Firm Load. Allocation of WECC RMS Energy not provided as direct result of failure to Penalty if such a penalty is comply with ISO Operating Order to curtail firm Issued to ISO by WECC. load. EP 3.2. Submit Feasible Energy and Ancillary Service Bids and Schedules EP 4.2.1. Failure to Deliver Ancillary Services. Formal Warning and potential "No Pay" penalties as provided by Section 2.5.26 of suspension of Ancillary Service ISO Tariff. certification in accordance with "Committed period" penalties as provided by ASRP 11. Section 2.5.26 of the ISO Tariff. EP 4.2.2 Excessive Uninstructed Deviation N/A. 50% MCP for negative UID and 100% MCP for following Dispatch Instruction. positive UID The ISO may increase the Administrative Penalties to an amount up to triple the base amount of the Administrative Penalties in the following circumstances: a) If the Behavior Subject to Penalty occurs during a System Emergency; or b) If the ISO determines that the Behavior Subject to Penalty is part of a continuing pattern of Behavior Subject to Penalty for which one or more monetary Penalties have previously been imposed upon the Market Participant. C 0&1 Review Page 28 of 34 January 3, 2003 V7 I INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: FEBRUARY 24, 2003 SUBJECT: HP 3000 / CUSTOMER INFORMATION SYSTEM REPLACEMENT PROCESS. RECOMMENDATION At this point no additional action is required by the Utility Board/City Council. BACKGROUND Azusa Light & Water maintains its own in-house Customer Information System (CIS), known as Municipal Utility Information System (MUIS) version 5.0. Since 1999 Azusa has been providing outsourcing CIS services to the City of Colton using a single (shared) Hewlett Packard (HP) 3000 939KS server located in Azusa. The 3000 line is a proprietary operating platform, and over time the information technology market has shifted away to proprietary solutions which are only available from only a single vendor. In light of this shift, HP has decided to end the support of the HP 3000 line as of December 31, 2006. This event puts an effective end of life not only on the hardware, but also to the MUIS system in its current operational form as well. Azusa's IT staff began planning for the replacement of the CIS/MUIS application this fiscal year. Last October, a proposal was made to, and accepted by, Colton Public Utilities to join with Azusa in conducting a joint investigation process in order to select a CIS replacement option. This process involved the creation of a joint Working Group that includes management, supervisors, end-users and other IT staff from both cities. Together this group will work through the various issues in order to reach a recommendation sometime within the next nine months (September 2003). While ultimately each City will make its own decision, a joint approach through the Investigative process is recommended in order to draw on the combined strengths that partnering has demonstrated. The Working Group has as its goal the creation of an RFQ document that would be used to solicit vendor information. The purpose of a joint RFQ is to avoid duplicated efforts, gain attention via greater market size, and most importantly, get the widest possible input and perspective. The RFQ would include information on current MUIS system capabilities (including web interface) as well as a "wish list" of desired items from both utilities. The RFQ document will be presented to both City Councils sometime in May for approval. The proposed release date for the RFQ is June 1, 2003 to correspond with CIS Conference in Nashville. All of the major Information Systems Vendors (ISVs) are generally present and looking for new opportunities such as this one. By hand delivering the RFQ to the vendors at the Conference the RFQ should get the maximum exposure and response rate possible. Additionally, travel plans are being made to have members representing both utilities attend the Conference (May 31" — June 3`'). This event provides the only opportunity to see all of the major CIS systems in one place; a perfect opportunity for staff members to learn about the options available, ask questions, and gather impressions about the various vendors. Azusa Light & Water is planning on sending Karen Vanca, Sallie Acero, Margaret Delano, Ann Graf Gaynor, and Kevin Morningstar. The investigation process will be a two pronged effort to analyze the internal system's migration viability versus off-the-shelf solutions available from ISVs. Staff will be working with a migration consultant to develop cost and functionality analysis regarding the conversion of the current MUIS application. This information would then be used to generate a written analysis of the MUIS migration costs, benefits, and functionality. With the RFQ responses and the MUIS migration report in hand, the Working Group will compare the costs and benefits of migrating the current MUIS system to another hardware platform. The group will analyze and make a recommendation for or against proceeding with the MUIS migration. The second major task will be to develop a short list of (3 to 5) possible CIS system vendors that meet the selection criteria. Criteria would include not only software functionality, but also an analysis of their business operations and implementation history. If an ISV solution is recommended, the Working Group would have the additional responsibility of conducting onsite demonstrations and development of more detailed proposals specific to each city which would then be used to make the final purchase decisions. Ultimately each utility must consider their individual CIS needs and communicate that to the other in order to formally resolve the contractual obligations outlined in the Agreement for CIS services between the two cities. 059 At the completion of the process outlined here, the Working Group should have addressed the six following key decision points: 1) Viability of continuing to maintain the internal MUIS software versus an ISV CIS application. 2) Go/no-go recommendation for migration of the MUIS software. 3) Operational and financial cost/benefit analysis regarding the selection of various ISV CIS packages. 4) "Short list" of ISVs and CIS applications for purchase consideration. 5) Operational and fiscal viability of continued sharing of CIS software using an ISV. 6) Set target dates for acquisition and conversion of replacement hardware and software in compliance with the terms of the existing Agreement between the two cities. FISCAL IMPACT In the current fiscal year approximately $15,000 will be spent on migration analysis and travel associated with the CIS Conference. FY 03/04 will include similar costs for various activities associated with pre -implementation work. FY 04/05 will include significant CIS expenditures depending upon the solution that is adopted. Early estimates indicate that the minimum budget will be around $400,000, and may range to more than twice that amount when all of the migration, software, and hardware costs are fully identified. Prepared by: Kevin Morningstar, Information Systems Manager Attachment: CIS Project Timeline 1.1 cis Project Timeline November 15, 2001 Hewlett Packard's announcement regarding the end of support for the HP 3000. January 2003 - April 2003 Virtual Working Group needs analysis and RFQ development. Joint meetings and information gathering process. May 2003 Approval of RFQ by Azusa and Colton City Councils June 2003 Joint Azusa/Colton group scheduled to attend CIS Conference in Nashville to meet with vendors, see product demonstrations, and deliver RFQ. August 2003 RFQ response period closes. Working group begins analysis. September 2003 Final reports back to each utility on or about September 30. December 2003 Joint discussions by the management of both utilities. Formal commitments recommended by the end of the year. January 2004 - June 2004 Budgeting for replacement equipment and software. Apri17, 2004 End of the fixed 5 year term to operate the MUIS software. July 2004 to July 2005 Purchasing and installation of new hardware and software. This would be the time to work on conversion and customization prior to installation. July 1, 2005 Primary date for conversion July 1, 2006 Latest cut over date for conversion December 31, 2006 End of HP and Cognos support for the HP 3000. April 7, 2009 End date for Azusa/Colton Agreement 061 San Gabriel Interpretive Center Schematic Design Presentation February 24, 2003 R A-4 U ct 4-4 A u In -a 0 Comparable Facilities Eaton Canyon, Altadena, CA •••••• na®®` e' IES poll! fEteii mAemAm uama© ' i 14iY /; was iii, ego v®P. r ly ! ftty( su' 111111 y. '/No R i •� `F"ia ,t`e41iAi lVIDEOS"- 7:4 jam. !' 7p a Floor Plan — Interpretive Center Drive-Thru Ticket Overhang Office/ Workroom Planter WC 0 Clerestory 4bwe Interpretive Gallery Open Office L_ Sto, Stoc Information Desk 0o Entry o0 Bathroom Plan — Interpretive Center Elevations — Interpretive Center South Elevation West Elevation Elevations — Interpretive Center North Elevation East Elevation San Gabriel Interpretive Center - Azusa, CA Design Considerations 1. Regional Contextualism A. Local Climate B. Ethos of Place 11. Contemplative A. Natural Light B. Natural Proportions - III. Harmony with Nature and Surroundings A. Transition from building to ground B. Textures, Forms and Colors of Native Landscape IV. Simple & Classic Forms A. Tripartite Division B. Structural Logic 1 J San Gabriel Interpretive Center - Azusa, CA Site Characteristics Project Description and Program Proiect Overview ' The site is bounded by San Gabriel Canyon Road (Highway 39) to The San Gabriel Interpretive Center is a 1500sf +/- education, the west and north. A water tank, water channel and hillside to the ticketing and office facility for the USDA Forest Service in east and a non-native nursery, water channel and overflow swale to association with the City of Azusa, thatwill replace an existing the south, with housing developments down the road. on-site trailer. Site Area: 4.24 Acres Site Access: San Gabriel Canyon Road & Nursery Bridge Site Terrain: Non -compacted fill, irrigated for Nursery Budget To be discussed (Sources of funds, in-kind support, priorities per project phase) Schedule Time Target Ending Pre -Design 4 weeks Dec. 15, 2002 Conceptual Design 4 weeks Jan. 15, 2003* Design Development. 6 weeks Mar. 1, 2003 Construction Documents 8 weeks April 30, 2003 Plan Check & Permitting 12 weeks July 31, 2003** Bidding and Negotiation 4 weeks Aug. 31, 2003 Construction Observation 16 weeks Dec. 31, 2003 Total Schedule 54 weeks * Contingent on delivery of Survey by January 7th, 2003 ** Could be expedited by City and County review Included in the building is an exhibition room, reception, and an office for Forest Service staff which includes storage and private restroom. An overhang protects one of three ticketing drive-thru lanes. A detached and unconditioned public restroom and main- tenance storage room is located adjacent to the main building and courtyard. Along with the building, the program calls for a roughly .5-1 acre interpretive garden, focusing on native plant species found in the San Gabriel watershed. Parking is.required for four em- ployees and fifteen visitors, including two handicap spaces. The balance of the site is to be restored with native vegetation. Green Building Criteria LEER Certification Goal: Gold Points (Maximum 69): 40 Yew of site from south come looting northwest 1 -San Gabriel Interpretive Center - Azusa, CA Green Building Certification Why Build "Greed'? Buildings fundamentally impact people's lives and the health of the planet In the U.S., buildings use one third of our total energy, two-thirds of our electricity, one-eighth of our water, and transform land that provides valuable ecological services. Atmospheric emissions from the use of energy lead to acid rain, ground -level ozone, smog, and global climate change. By changing the way we build, we can fundamentally change the health of communities. Although the proposed San Gabriel Interpretive Center is a modest building at only 1500sf, it has the potential to affect many people, as over 1 million of the city and counties residents will visit every year. The building has the potential to educate not only through its gardens and exhibits, but also its very construction, systems, and forms, and their integration into the landscape. We propose that the site planning and building be designed with a green focus from the outset and that the building be qualified as a green building from the US Green Building Council. Qualification by a third party will make the site and building a genuine learning tool and show that the City of Azusa and the USDA Forest Service are leaders in environmental stewardship. What is US Green Building Council? The US Green Building Council (USGBC) is a consensus driven non-profit based in Washington, D.C. whose mission is to promote environmentally responsible and healthy buildings. It has created the industry -standard LEED (Leadership in Energy and Environ- mental Design) green rating system. It's membership includes architecture firms, engineering firms, builders, manufacturers, gov- ernment entities (federal, state, and local), real estate developers and owners, financial institutions, nonprofit associations, utilities, and others. What is the LEED Green Rating System? The LEED Green Rating System is a point system that takes an integrated approach to judging a buildings "green" characteristics. Points are assigned under six main categories: Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality and Innovation & Design Process. After review by a third party certification process, points are awarded and the building is granted a classification based on the number of points. The range begins at certification and continues to bronze, gold and platinum. Based upon a preliminary analysis of the site and proposed build- ing, we believe a Gold rating is attainable. Project Checklist Sustainable Sites Prereq i f-� U Credit 1 rI u EJ ZI Credit 2 uCredit 3 Z�, u Credit 4.1 Credit 4.2 D , n Credit 4.3 �ZII ❑ O Credit 4.4 V J Credit 5.1 Credit 5.2 Z El O Credit 6.1 Z F� [-I Credit 6.2 Zp� E Credit 7.1 571,71 ,71 Credit 7.2 j� Credit g LE 14 Possible Points Erosion & Sedimentation Control Required Site Selection 1 Urban Redevelopment 1 Brownfield Redevelopment t Alternative Transportation, Public Transportation Access 1 Alternative Transportation, Bicycle Storage & Changing Rooms I Alternative Transportation, Alternative Fuel Refueling Stations 1 Alternative Transportation, Parking Capacity i Reduced Site Disturbance, Protect or Restore Open Space i Reduced Site Disturbance, Development Footprint Stormwater Management, Rate or Quantity Stormwater Management, Treatment Landscape & Exterior Design to Reduce Heat Islands, N.RooF Landscape & Exterior Design to Reduce Heat Islands, Roof Light Pollution Reduction Water Efficiency 5 Possible Points Credit 1.1 Water Efficient Landscaping, Reduce by 500/6 L Credit 1.2 Water Efficient Landscaping, No Potable Use or No Irrigation Credit 2 Innovative Wastewater Technologies ryJ, Credit 3.1 Water Use Reduction, 200% Reduction ❑ ❑ Credit 3.2 Water Use Reduction, 30% Reduction Energy & Atmosphere 17 Possible Points Fl Prereq 1 Fundamental Building Systems Commissioning [Yt< Prereq 2 Minimum Energy Performance Prereq 3 CFC Reduction in HVAC&R Equipment ❑ tJ credit 1.1 Optimize Energy Performance, 20%New / 10% Existing 17 E] Credit 1.2 optimize Energy Performance, 30%New/20%Existing 1,2 F1 Q- Credit 1.3 Optimize Energy Performance, 40%New/30016 Existing Credit 1.4 Optimize Energy Performance, 50%Now /40%Existing U Credit L5 optimize Energy Performance, 60% New 150%E fisting X R [J Credit 2.1 Renewable Energy, 5% '��' ❑ Credit 2.2 Renewable Energy, 1o% Credit 2.3 Renewable Energy, 20% 71 ❑ Credit 3 Additional Commissioning ❑ U Credit 4 Ozone Depletion ❑ 2 E]Credit5 Measurement & Verification i �'!J ❑ Credit 6 Green Power Required Required Required 2 2 2 2 2 LEED rm Rating System Version 2.1 V LE U S Green Building Council vi Materials & Resources Y Prereq 1 Credit Ll �' Credit L2 t/7VmJ Credit 1.3 �r�� n �( Credit 2.1 urI ZI� u Credit 2.2 Vr�1 u ❑ Credit 3.1 VJ CI ❑ Credit 3.2 �i EJ EJ r u Credit 4.1 L LTJ ❑ Credit 4.2 [r"I❑�Credit 5.1 0fZ El Credit 5.2 1KEl L( �i Credit 6 z J u Credit 7 13 Possible Points Storage & Collection of Recydables Required q Building Reuse, Maintain 75% of Existing Shell I Building Reuse, Maintain 100%of Shell 1 Building Reuse, Maintain 100% Shell & 50% Non -Shell I Construction Waste Management, Divert 50% t Construction Waste Management, Divert 75% 1 Resource Reuse, Specify 5% 1 Resource Reuse, specify 10% 1 Recycled Content, Specify 25% 1 Recycled Content, Specify 50% 1 Local/Regional Materials, 20% Manufactured Locally I Local/Regionat Materials, of 20% Above, 50% Harvested Locally - 1 Rapidly Renewable Materials t Certified Wood t Indoor Environmental Quality Prereq 1 Prereq 2 Credit I Z L ❑ Credit 2 [71 F-] F'l Credit 3.1 (X, ❑ ❑ Credit 3.2 Z E.r ❑ Credit 4.1 U ❑ Credit 4.2 ❑ a Credit 4.3 17 ❑ ❑ Credit 4.4 , ❑ Credit 5 iJ r-] El Credit 6.1 ❑ 11 Credit 6.2 U Credit Zl ❑ Credit 7.2 F-1 ❑ Credit 8.1 CI Credit 8.2 15 Possible Points Minimum IAQ Performance Required Environmental Tobacco Smoke (ETS) Control Required Carbon Dioxide (CO,) Monitoring I Increase Ventilation Effectiveness I ConstructionIAQ Management Plaa,During Construction 1 Construction IAQ Management Plan, Before occupancy 't Low -Emitting Materials, Adhesives &Sealants 1 Low -Emitting Materials, Paints 1 Low -Emitting Materials, Carpet 1 Low -Emitting Materials, Composite wood 1 Indoor Chemical & Pollutant Source Control I Controllability of Systems, Perimeter I Controllability of Systems, Non -Perimeter t Thermal Comfort, Comply with ASHRAE 55-1992 t Thermal Comfort, Permanent Monitoring System 1 Daylight & Views, Daylight 75% of Spaces 1 Daylight & Views, views for 90% of Spaces 1 Innovation & Design Process 5 Possible Points K]'[] ❑ Credit l.t Innovation in Design: Specific Tide 1 ❑ J ❑ credit l.2 Innovation in Design: Specific Tale t n/.> � Credit l.3 Innovation in Design: Specific tide rt U E] Credit 1.4 Innovation in Design: Specific Tide 1 ❑ U Credit 2 LEEDT Accredited Professional l Project Totals 69 Possible Points O ❑ ❑ Certified 26-32 points Silver 33-38 points Gold 39-51 points Platinum 52-69 points San Gabriel Interpretive Center - Azusa, CA Phoebe Appenson Hearst Social Hall. 1913 Gme H. Dodge Chapel, 1915 Caretesia, later Addition - Integration of buildings into the landscape Fencing and Native landscaping, Aslona f Case Study - Asilomar, Monterey, CA Asilomar and Julia Morgan Between 1913 and 1928, Julia Morgan designed sixteen structures at Asilomar, thirteen of which still exist. Built as a retreat for the YWCA, Julia Mbrgan created an in- terpretation of the Arts and Craft style that was unique to the ecology and climate of the Monterey Peninsula. The goal of Asilomar was to prominently promote the goals of the group during their annual leadership retreat and it continues today to be a thriving location for meetings and conferences. The "Monterey Style" and Materiality The distinctive material choices and classical tripartite hierarchy of the structures at Asilomar are a unique inter- pretation of the California Arts and Crafts movement. The "Monterey Style", as it is known, is closely associated with the selection of materials, forms and building siting which respond directly and adapt to the natural surround- ings. Julia Morgan sought to "bring people back in touch with nature, and thus restore balance, health, harmony, and happiness." At Asilomar this is achieved by selecting local rock and wood, providing clerestories and an abun- dance of natural light, and integrating the exterior gardens into the interior spaces. Building Siting and Landscaping At Asilomar, the buildings are integrated into the existing natural features and landscapes. The buildings proportions and forms are generated by a reading of the natural pro- portions, textures, scale and rhythm of vegetation around the site. Working with the natural topography, buildings tend to nestle into groves of trees, or `float' above small fields of wild grass. Very little of the site is manicured, and the overall site landscaping is a good example of restored and natural habitat. Fencing, Paving, and Site Features Landscaping and site design features at Asilomar are constructed to be low -impact. Planted vegetation is na- tive and therefore requires little to no irrigation after its establishment period other than natural rainfall. Site design features are constructed of local wood and stone in keeping with the buildings. Roads which must be paved are constructed of low -albedo concrete asphalt to reduce the occurrence of heat islands, and non-critical roads and paths are of decomposed granite, bark, and natural dirt. San Gabriel Interpretive Center - Azusa, CA Case Study - Courtyards & Arcades Cenval Courtyard, 77x Adalusia Apo nm, Wal Hollywood, 1926 Mission Sanmdo, Arcade, 1797 Climate and Architecture Climate and the built environment are intimately linked. Most architectural forms have developed in one respect or another in relation to climate and thb changing of seasons. The climate of Southern California is surprisingly rich and varied, from the cool and Mediterranean coast to the extreme diurnal contrasts of the high desert. The inland foothill areas tend to be hot and dry, with breezes in the morning and late afternoons. The Courtyard A distinctive and climatically appropriate building form in Southern California is the courtyard. Courtyards tend to organize buildings around a central internal or external plaza and garden, where shade or water cools down the air flowing between buildings. The reinterpretation of Mexi- can and Andalusian forms worked in Southern California for both their climatic and cultural parallels. Courtyards also enable a building to open up onto a garden and allow the exterior to be internalized. The Arcade Similar to the courtyard, arcades developed from a climatic response to hot and and climates. Arcades, such as the one at Mission San Fernando, pictured to the left, create a climatic and visual buffer to a building. By creat- ing a shaded zone around the exterior shell of the build- ing, the interior volumes are kept cooler while allowing inhabitants the pleasure of exterior shade. Buildings, such as the Azusa City Hall, incorporate both the courtyard and arcade. San Gabriel Interpretive Center - Azusa, CA Case Study - Ecological Architecture Glenn Murcun. Simpson -tee Residence, Australia, 1989-94 Glenn Mureuu, Maguey Residence & CSstem Derail, Ausbslia, 1962-84 Alvaro Sim Boa N9va Tea House & Resmmaa4 Panugat 1958-63 Gmserele Permeable Paver- water Conservation Ecology and Architecture Ecological Architecture, at its most successful, is a unique synthesis between technology and place. It is critical that a building does not forgo aesthetic pleasure and contextual sensitivity by over -emphasizing technology. Likewise, every site is unique, with its own microclimate, constraints, and views, and these unique issues matched against a program, budget, and schedule typically gener- ate the main architectural issue and response. Pictured at left are examples of built works that synthesize environ- mental and aesthetic aspects within their particular sites. Materials Materials are chosen for any number of reasons: aesthet- ics, cost, availability, knowledge of trades, safety and environmental performance. Often, a landscape or par- ticular characteristics and textures of a site can influence the selection of materials as seen at Asilomar in Monterey, CA. The City of Azusa and the Angeles National Forest have distinct material possibilities. The natural stone and river rock, the native vegetation, the frequency of wild fires, and the nature of the weather all influence thoughts about the selection of materials. Passive and Active Solar Design Approaches to environmental and sustainable design can vary by degrees, often influenced by particular needs of the program and constraints of budget. A building can be sited in a way that it passively collects heat during the day to release slowly into the building in the evening or it can sited such that photovoltaic panels have optimal relation- ship to the passing sun. Often, in siting a building, many relationships come into play and influence the architec- tural solution. Water Conservation - Cisterns and Greywater In dry and hot areas, such as the City of Azusa, water conservation is a primary concern from an ecological and financial perspective. Many strategies can contribute to both the reduction of use and the conservation of sup- ply and protection of water quality. Efficient fixtures can conserve water, while greywater systems can augment irrigation and flushing. Rainwater can be collected from the roof and stored in cisterns while increased permeabil- ity of hardscape with grass pavers can reduce the flow into stormdrains and help recharge the water table. Bioswales can help to filter runoff from constructed areas. San Gabriel Interpretive Center - Azusa, CA Design Team North East Trees (NET) North East Trees is a growing grass roots environmental group . comprised of designers, planners, and a construction team that develops habitat and open space in the Los Angeles County area. Over the years, North East Trees has contributed greatly to the environmental quality of Los Angeles County. While North East Trees is best known for the Los Angeles River miniparks it designed for the Mountains Recreation Conservation Authority (MRCA), we have also been enhancing existing parks, schools, and streets with plantings, miniparks, and interpretive signage. Our construction crew employs local.youth, mixing valuable job skills with environmental values. Some of our recent planning efforts have even caught the attention of state officials. The Arroyo Seco Watershed Restoration Feasibility Study, conducted with the Ar- royo Seco Foundation, was noted by the State of California to be one of the top ten watershed restoration studies in 2001. Founder, Scott Wilson, has used his many talents to further the organization: devoted educator, landscape architect, contractor, arborist and visionary. Claire Robinson, NET'S new executive director, also brings diverse experience to the organization. Alternately a historic preservationist in Paris, an architectural professor, and a business manager, she possesses the energy and expertise to direct North East Trees' growth in the coming years. Office of Sustainable Architecture (OSA) The Office of Sustainable Architecture focuses on creating en- vironmentally sensitive architecture, within the requirements of program, budget and schedule, that is both culturally and contextu- ally appropriate. Projects are designed with a team approach and take form through a consensus building interaction between client, consultants and community, rather than an preconceived aesthetic philosophy. Begun in 2001, OSA is led by Ryan Christopher Illy, AIA who has previously worked on many state and nationally recognized proj- ects involving environmental issues, including the California Fuel Cell Partnership and the headquarters of the California Indepen- dent System Operator, a prototype for the LEED 2.0 State Building Standards. Mr. Ihly is a graduate of the Rhode Island School of Design and is a member of the American Institute of Architects, the Urban Land Institute, and the US Green Building Council. S - _ '.). 6x 1 r• a y ai {"ps ti rf'y:`k,yY� xA ;'.,r{�Yt Fyl :�s L1 �'�� Ir �f. : ' f' Tta;•� 4c _.: s'.i �'. �"r a- y 1 3e� }}'jj',j��j!��t� ,f � � 1 _ kC y�,y.r'C?t7r F n�r�'s' s FV" 1§C!� `"-•M1�ie. '� , � 0 f �+' al� 3 1 F 151 YIYV.p,*+ r.. 11 � 1. �' ��t�w�1c Ilii -1U ��: fY t,�+� a -'! i r. ,Irdr 1"JJiyl l i+,� r ti.�1 �` � _t �, _ , -• i 1y�'•�- '. r a✓ x A. a" i' i " r ' 17�d1 8 1 id J r .nkpiw dfp' 1% 1 t+xt + ' 4 Su.70 - Y�it,*� 1,^Tfi r^il y f lV.rl'35 ! ♦ 7 F a!f I 1, r1n1 WAR Ll4f .1-1 11 : dl Wl 9 rr a - gM1ir..,r'rt--4.'�ri- �y� ,��' ,r 1 'L. �x� yt ✓ r nd b 9 r b rtvu iv Z 4 i ♦ swz rTrC ti C• �'f1- �' /i a I 1 x r' f Y!i k' S ' 'r �r '_ �h �C*vr �`�c �_Ff Maar �'a-x t$ I � I Sybr .Fr ✓ 2 t - }t4V ?��S ix f � rrp'��—'—� ..�.c� ,� - r �' � 13 i n a, �6✓ v �21 t _Va11 1g ry' i, F4 C 1 'vye�l+li 3�I p'.'r 4u�... F' S4 y•' x ......_J� 15 ? .�' y11 JUS i39Y 9� San Gabriel Interpretive Center -.Azusa, CA Meeting Agenda - January 2, 2002 Meeting Agenda I. Watershed Sensitive Planning Practices V A. Landscape design B. LEED building certificatioln and "Greed' goat II. Monterey Style Building Design A. Azusa Aesthetics B. Designing for Reduced Fire Risks W. Critical Site Issues A. Site Survey B. Soil Survey C. Site Utilities I . Sewer or Septic 2. Storm Drains 3. Electrical, Telephone, Water 4. Solar (Net -Metering with ALW) D. Underground Water Pipe Locations E. Assistance to Bury Power Lines F. Water Tank 1. Permission to Move Access Road 2. Maintenance Plan 3. Overflow Options G. Water Channels 1. Maximum Proximity to Channels 2. Minimum Fencing Requirements H. Water Collection in Cistern 1. Greywater I. Landscape 2. In Building J. Grading 1. Concrcte "Ilarme, Construction 2. Covina Irrigation Channel 3. Assistance K. Convert Channel to SGR into bioswale? L. Permeable Paving M. Water Feature 1. Water Source 2. Maintenance N. River Rock from Citv Spreading Basin Pronert_v 0. Fencing and Rock Walls 1V. Conceptual Design Review IV Project Review A. Budget B. Schedule C. Phasing