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HomeMy WebLinkAboutAgenda Packet - April 28, 2003 - UB3 CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, APRIL 28, 2003 - 6:30 P.M. The Utility Board Members of the City of Azusa met in regular session, at the above date and time in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairperson Chagnon called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: COUNCILMEMBERS: HARDISON, STANFORD,ROCHA, CHAGNON, MADRID ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, City Manager Cole, Assistant City Manager Person, Director of Utilities Hsu, Assistant to the Director of Utilities Kalscheuer, Administrative Technician Yang, Assistant Director of Water Operations Anderson, Assistant Director of Electrical Operations Ramirez, Assistant Director of Resource Management Tang, Electric Engineer Langit, Information Systems Staff Graf - Gaynor and Morningstar, Consultant Suzanne Avila, Deputy City Clerk.Toscano, City Clerk Mendoza. Public Participation Pub Part None. None The CONSENT CALENDAR consisting of Items 11-A and Il -F, were approved by motion of Con Cal Councilmember Stanford, seconded by Chairperson Hardison, and unanimously carried with the Approved exception of item II -F, which was considered under the Special Call portion of the Agenda. A. The minutes of the regular meeting of March 24, 2003, were approved as written. Min appvd B. Authorization was given to staff, on behalf of the Azusa Light and Water, to release the joint Info System Azusa/Colton Customer Information System Request for Proposal/Qualifications (CIS RFP/C) CIS RFP/Q document on or by May 30, 2003 and solicit proposals from qualified information system vendors. C. Specifications for trailer mounted diesel generator were adopted and authorization was given Diesel 'to advertise for bids. Generator D. Authorization was given to waive formal Request for Proposal process and approve Fulbright & Consulting Services Contract with Fulbright & Jaworski as bond and disclosure counsel for Jaworski upcoming revenue bond issuance and 1993 Series Water Revenue bond refunding. Bond Cncl E. Approval was given to add $10,000 to the contract amount of Wren & Associates for Wren & inspection services on project W-183, Northern Transmission Line. Assoc. SPECIAL CALL ITEM. Spec Call SPECIAL CALL ITEMS Special Call Items Councilmember Rocha addressed item regarding the Waterline Rehabilitation Construction Doty Bros. questioning who the other parties were that will be reimbursing the project. Director of Utilities Wtrin Cnst. Hsu responded stating that the other party is Miller Brewing Company. It was then moved by Councilmember Rocha, seconded by Councilmember Stanford and unanimously carried to approve the contract for the construction of 20 -inch Waterline Rehabilitation Construction which was awarded to Doty Bros. Construction. Scheduled Items Sched Items San Gabriel Interpretative Center and U.S. Forest Service Entrance Center Elevations. Interpretative Center Ms. Claire Robinson, Sara Easely and other representatives of North East Trees addressed Presentation Councilmembers detailing the background of their organization as well as some of their design And accomplishments. They then addressed the San Gabriel Interpretive Center and U.S. Forest Discussion Service Entrance Center detailing their plans, i.e. plant palette, rock walls, building design, parking issues, for the area. Lengthy discussion was held between Council, staff, and representatives of NorthEast Trees regarding plants, maintenance, signage, entryways, e)dts, cost -budget, long range plans, building design, etc. They then answered questions posed by Councilmembers. Moved by Councilmember Stanford, seconded by Chairperson Chagnon and unanimously carried Motion to to move forward with the final design and bring back specifications and include a timeline for the Proceed w/ project. Project Assistant City Manager Person presented and detailed the issue of the North End monument sign North End and a proposed flag pole near the sign. Lengthy discussion was held between Councilmembers Monument and staff regarding the panels on the monuments, size, design, structure, and signage. It was And flag pole consensus of Council that "Gateway to the Angeles Forest", not be included on the monument, but to place the Canyon City on both sides; further, that staff come back with variations of the monument sign, focus on softening the siding, place "Canyon City" on both sides, and have yucca and canyons panels. Additional discussion was held regarding the location of the flag pole; funds were donated by local veterans' groups and they asked that it be placed somewhere in the vicinity of the monument. It was consensus of Councilmembers that the flag pole issue be discussed with veterans' groups and be placed somewhere closer to Sierra Madre. RW Beck's Final Report and Presentation on Telecommunications Feasibility Study was brought RW Beck's forward for handling at this time. Final Rpt Teiecomm. Feas. Study 04/28/03 PAGE TWO Ms. Warner of RW Beck addressed the issue presenting a detailed report on the Ms. Warner Tel@communications Feasibility Study which covered the following topics: Study Purpose, RW Beck Methodology, Government and Institutional Fiber Network, Internal and External Interest in Online Report City Services, Why Municipalities Provide Communications Services, Current Community Use of Summary Telecommunication Services, Price—The Primary Telecommunications and Broadband Issue in Of Findings Azusa, Buying Intentions, Wholesale vs. Retail, Key Factors to Network Profitability, Revenue &Alternatives Opportunity, Financial Results, Summary of Findings, and Alternatives. The Summary of Findings are as follows: • There is moderate demand for telecommunications and broadband services with greatest Findings interest in cable television. • The City has the constitutional and statutory authority to provide these services largely free of regulatory oversight. • The deployment of a wholesale network is financially viable if a robust set of service providers can be recruited. This is highly unlikely in the current telecommunications environment. • The deployment of a retail fiber network is not financially prudent unless there are overriding community requirements. • There is substantial interest in the delivery of selected City services via the internet that can be accomplished with the constituents' current Internet access. Deployment of a fiber network for delivery of broadband and telecommunications services is not recommended at this time. The Alternative presented are as follows: Alternatives There are less costly alternatives that might be investigated to enhance the City's economic development and quality of life: • Deployment of a wireless "WIFE" high-speed Internet network (wholesale or retail) • Limited high-speed data network to serve larger businesses • Collaboration with other municipalities to create regional wholesale network • Wiring of Monrovia Nursery Housing Development to provide high-speed Internet as a starter project She then answered questions posed by Councilmembers. It was consensus of Councilmembers to pursue the cost expected for the wireless aspect of Pursue telecommunications and the services that may be involved. Wireless Moved by Councilmember Stanford, seconded by Councilmember Hardison and unanimously Accept Itr carried to accept Athens Services' letter and commitment in response to the audit conducted by Commitment MSW Consultants on behalf of the City. Athens Svs Director of Utilities Hsu and City Attorney Ferre explained that the proposed agreement for Hsu & Ferre Engineering and Design of the new Distribution Substation with Southern California Edison Comments Company is a limited agreement and that the parties still remain in dispute on the contractual terms and conditions of the interconnection service, which if not resolved within a 90 -day period, Edison shall file all remaining contractual issues at FERC for resolutions. Moved by Councilmember Stanford, seconded by Chairperson Chagnon and unanimously carried Engr & Dsgn to approve the Engineering and Design Agreement with SCE for the new distribution substation in Agmt SCE principle and authorize the Mayor to execute the Agreement upon the preparation of execution New Sub - Station copies. 04/28/03 PAGE THREE Staff Reports/Communications Staff Rpts Customer Service Training and Measure X Follows -Ups. Director of Utilities Hsu addressed the Update on issue providing an update stating that the staff report contains the recommendations of MEASURE Customer X along with recommendations from employees. He then answered questions posed by Service Councilmembers regarding specific areas of customer service. Mayor Madrid requested that Training seating be provided in the Light and Water building lobby for customers who have to wait. Assistant Director of Electrical Operations Ramirez address Council presenting and detailing the D. Ramirez Azusa Light & Water's Electric Division Reliability Report for Years 2001 8.2002. He noted that Update the City had purchased a reliability software program through American Public Power Association Reliability created for them under the Deeds program which was intended to be used by small utilities. Report They took the City of Azusa's electrical data for 2001 & 2002 and created the reliability report. He detailed the contents of the report which consisted of the following Reliability Index Formula: System Average Interruption Frequency Index (SAIFI), System Average Interruption Duration Index (SAIM), customer Average Interruption Duration Index (CAIDI) and Average Service Availability Index (ASAI). He explained Azusa's data in detail and answered questions posed by Councilmembers. Director of Utilities Hsu provided an update on the Yard Waste Barrel Program noting that Update estimated recovery of the cost of the barrels is five years and savings would be realized from Yard Waste disposing greater amounts of separated green waste versus paying to have green waste Barrel Pgrm processed as mixed waste through MRF. Director of Utilities Hsu presented the update on the FY 2002-2003 Work Plan for Azusa Light and Work Plan Water noting the new format of the document and that it is our intention to eventually make the Update information available on the City's Intranet. Pwr Res Rpt The Power Resources Division Monthly Report was received and filed. Proposed Director of Utilities Hsu reported on proposed legislation SB 888, which is proposing to eliminate SB 888 deregulation, repeal AB 1890. He stated that SCPPA, CMUA, and Northern California Power Authority are reviewing the bill at this time to see if there are any amendments to be proposed. Dir Com Director's Comments Reschedule Director of Utilities Hsu requested that the May Utility Board Meeting be moved to another date May Mtg in May due to the regular meeting falling on Memorial Day. He stated that he needed to make a 5/21/03 presentation on the Budget as well as a five year financial projection and implementation of debt service they will be incurring by issuing bonds. It was consensus of Council that the date be moved to the 21 s' of May or the June 3`d. (May 215' was selected at a later time) Discussion Discussion was held regarding not having a meeting in the month of August. It was suggested August that the Utility Board meeting in August be cancelled as well as the last Council meeting. Further, Meetings if Utility Board business arose it could be held on the second Monday in August. SCPPA Discussion was also held regarding upcoming SCPPA and APPA seminar dates. The SCPPA &APPA seminar will be held from May 29' -May 31'. The APPA seminar will be held in Nashville from Mtgs June 15d' -June 18'. CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, MARCH 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. Call to Order ROLL CALL Roll Call PRESENT: COUNCILMEMBERS: HARDISON, STANFORD,ROCHA, CHAGNON, MADRID ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: Also Present City Manager Cole, Assistant City Manager Person, Director of Utilities Hsu, Assistant to the Director of Utilities Kalscheuer, Administrative Technician Yang, Assistant Director of Water Operations Anderson, Director of Park Planning and Development Noriega, Consultant Suzanne Avila, Deputy City Clerk Toscano, City Clerk Mendoza. Pub Part Public Participation None None. The CONSENT CALENDAR consisting of Items Il -A and 11-F, were approved by motion of Consent Councilmember Rocha, seconded by Chairperson Hardison, and unanimously* carried. Calendar Approved A. The minutes of the regular meeting of February 24, 2003, were approved as written. Min appvd B. Formal Request for Qualification process was waived for the selection of financial Advisor for upcoming Bond Financing and approval was given to contract with C.M. de Crinis &Co., Inc. C.M. de as Financial Adviser. Crinis & Financial Advisor 005 IVC. Formal bidding procedures were waived and authorization was given to purchase a copier Purchase from Lanier Worldwide, Inc. at a cost of $12,615.44, plus sales tax. Lanier copier D. Authorization was given to amend Blanket Purchase Order issued to Bristol Babcock, Inc. in Amend Bkt the amount of $20,000.00, for fiscal year ending June 30, 2003. PO Bristol E. Approval was given to authorize a purchase order to Ryerson, Master and Associates, in the PO Ryerson, amount of $53,100.00, for additional consulting services on EPA mandated Water System Master & Vulnerability Assessment. Assoc. Construction contract with Robert Brkich Construction Corporation was approved in the Constr. Cntrt amount of $100,000, to complete the installation of Pipeline B for Wells 1 I and 12. Robert Brkich Scheduled Items Moved by Councilmember Rocha, seconded by Chairperson Chagnon and unanimously carried to approve the DRIP Rebate Program with the amendment that "residents eligible to receive rebate of up to $1,400 not $1,500". Discussion was held regarding item "Consultant Report Regarding Athens Services". CityManager Cole advised that representative of Athens Services have requested a meeting with staff to discuss the issue. It was consensus of Councilmembers to continue the item to the next Utility Board Meeting of April 28, 2003. Staff Reports/Communications Sched Items DRIP Rebate Program approved Dis Rpt on Athens Continued 4/28 mtg Staff Rpts Ms. Suzanne Avila, Consultant, provided an update on the San Gabriel River Projects, which S. Avila included the Forest Gateway Interpretive Center, Azusa Canyon River Park, Rio San Gabriel Bike Comments Path Extension and the San Gabriel Canyon Spreading Basins. Chairperson Chagnon requested that she be provided with the budget and all that it entails for Chagnon each project and suggested that funds not be added to the project as it progresses. City Comments Manager Cole noted that the project may be done in phases and presented the Angeles National Forest Gateway Interpretive Center Construction Budget and Cost Estimate. Ms. Avila then presented the new renderings of the Interpretive Center design for discussion. It S. Avila was consensus of Councilmembers that the main building be moved towards where the restroom Comments is located and the restroom be moved nearer to the parking lot. Director of Utilities Hsu addressed the Status of Projects in the Power Resources Division Monthly Dir of Util Report stating that most of them are on-going; he highlighted the Renewable Energy noting that Pwr Res they are using the wind -power project to supplement the City's obligation to renew energy. He Monthly stated that he will prepare a Renewable Portfolio Standard (RPS) and answered questions posed Rpt by Councilmembers. He then responded to questions posed regarding the Intervention and Renewable Protest of New Edison's Distribution Service Charges. Energy Director of Utilities Hsu detailed information item regarding the notice legally required to be sent Dir of Util to jurisdictions served by Azusa water when water to be serviced exceed a California Department Notice of Health Services action level. Discussion was held regarding the Issue. It was consensus of Require Councilmembers that the letter be revised to include comments suggested by Councilmembers. Well No. 10 03/24/03 PAGE TWO 008 Director of Utilities Hsu provided an update on the painting of the wrought Iron fence at the Update Transit Yard stating that the cost is included in the next fiscal year budget. Paint fence Assistant to the Director of Utilities Kalscheuer provided an update on the Telecommunications Update Feasibility Study stating that they are in the final stages of the Feasibility Study and will be making Telecom - final comments to the consultant by the beginhing of April and will be receiving a final report in communi- middle April which will allow staff to schedule a presentation on April 28`h. Director of Utilities cations. Hsu proposed that the presentation be set in a workshop setting after the regular Utility Board meeting. Directors' Comments Dir Com Chairperson Chagnon suggested that staff take a look at the Utility's financial projection with Chagnon questions such as: what the Board wants as minimum reserves, what the policy should be for Comments the amount of money that is given to the General Fund, and what type of items should the Utility Department budget underwrite. Utilities Director Hsu responded stating that when he presents the financial projection for the next year he will include Chairperson Chagnon's recommendations. An item of subsequent need arose, and it was moved by Councilmember Stanford, seconded by Item of Chairperson Chagnon and unanimously carried to agendize it as follows: Closed Session item, Subsequent Personnel Matter, Government Code Section 54957. Title: Chief Information Officer. Need It was consensus of Councilmembers to recess to Closed Session to discuss the following: Closed Sess Conference with Legal Counsel - Existing Litigation (Government Code Section 54956.9 (a)) Simich City of Azusa v. Simich, Case No. Los Angeles Superior Court No. KC041085. Personnel Matter - Government Code Section 54957. CIO Title: Chief Information Officer. The City Councilmembers recessed at: 8:45 p.m. and reconvened at 9:19 p.m. There was no Recess reportable action taken in Closed Session. Reconvene It was consensus of Councilmembers to adjourn. Adjourn TIME OF ADJOURNMENT: 9:20 P.M. SECRETARY NEXT RESOLUTION NO. 03-C29. 03/24/03 PAGE'THREE 007 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: . JOSEPH F. HSU, DIRECTOR OF UTILITIES �✓ DATE: APRIL 28, 2003 SUBJECT: AUTHORIZE RELEASE OF THE AZUSA/COLTON CUSTOMER INFORMATION SYSTEM REQUEST FOR PROPOSALS/QUALIFICATIONS DOCUMENT AND SOLICIT RESPONSES FROM QUALIFIED INFORMATION SYSTEMS VENDORS. RECOMMENDATION It is recommended that the Utility Board/City Council authorize staff, on behalf of Azusa Light & Water, to release the joint Azusa/Colton Customer Information System Request for Proposal / Qualifications (CIS RFP/Q) document on or by May 30, 2003 and solicit proposals from qualified information system vendors. BACKGROUND At the February 24, 2003 meeting of the Utility Board/City Council, staff presented a report on the discontinuance of technical support for the Department's Hewlett Packard 3000 (minicomputer) effective December 2006. This announcement has business critical impacts on Azusa Light & Water's ability to maintain its in-house Customer Information System (CIS) in Its current status. Since Azusa and Colton Public Utilities (City of Colton) share hardware and software, a joint investigative process was developed and implemented. Given the multi- year lead time needed to implement CIS solutions, staff members from both utilities have been working together on developing a set of CIS functional specifications, contacting prospective information systems vendors and writing a Request for Proposals/Qualifications. The proposed release date for the RFP/Q is May 30, 2003; the date was selected to correspond with CIS Conference in Nashville. Three staff members from Azusa (and three from Colton) will be attending the Conference (May 31"— June 31d) to see the major CIS systems and distribute the RFP/Q. Azusa Light & Water will be sending Karen Vanca, Margaret Delano, and Kevin Morningstar. MW As noted above, the document was jointly developed by staff from both Cities. It is anticipated that the Colton City Council will take similar action authorizing the RFP/Q's release on behalf of their utility. Copies of the RFP/Q are available for review by Board Members upon request. Staff expects to have the next update for the Utility Board/City Council in September 2003. FISCAL IMPACT The RFP/Q is being released as part of investigative process to determine the best CIS option for Azusa. No fiscal impact is directly linked to the release of the RFP/Q. The RFP/Q process impacts the study of two (out of four) options relating to the possible replacement of the current CIS solution. Future fiscal impacts will be significant; cost estimates and fiscal timing should be known by August/September 2003. Prepared by: Kevin Morningstar, Information Systems Manager ME wo,"r rft\ CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESK�r/ DATE: APRIL 28, 2003 P SUBJECT: SELECTION OF BOND COUNSEL AND DISCLOSURE COUNSEL FOR UPCOMING BOND FINANCING RECOMMENDATION It is recommended that Azusa Utility Board/City Council waive formal Request for Proposal process and approve Consulting Services Contract with Fulbright & Jaworski as bond counsel and disclosure counsel for the upcoming electric revenue bond issuance and 1993 Series Water Revenue bond refunding. BACKGROUND Azusa Light & Water is about to issue revenue bonds to finance the construction of Azusa's second electric substation and it is also in the process of refinancing 1993 Series Water Revenue bonds, close to $30 million in total. Staff formed a working committee consisting of City Treasurer, Interim Finance Director, Assistant Utilities Director of Resource Planning, Senior Electrical Engineer, Financial Advisor, and the Senior Accountant of Redevelopment Department. The working committee solicited proposals from two law firms that the committee has working knowledge of or is familiar with. After careful evaluation of the respective proposals the working committee recommended Fulbright & Jaworski to be the Bond Counsel and Disclosure Counsel. One attribute that Fulbright & Jaworski brings to this project is Its familiarity with Azusa's electric utility respecting financing activities through Azusa's joint project financings under Southern California Public Power Authority, the latest one being the refunding of San Juan Power Project 2002 Refunding Series B consummated In October 2002. The scope of services provided by the Bond Counsel includes assisting Azusa to sell and issue 015 Page 2: City Council Agenda, April 7, 2003 — Selection of Bond Counsel the above mentioned revenue bond documents. To the extent necessary, they will prepare resolutions, ordinances, trust agreement, and security agreements; they will also prepare or review agreements for any credit support facility, escrow deposit, trustee, paying agent or registrar, and will discuss and comment on such agreements with the City's Financial Advisor upon any aspects of the transaction related to its role as Bond Counsel. As Disclosure Counsel they will draft the preliminary official statement and the final official statement to be used in connection with the offering of the revenue bonds, including the summaries of the basic financing documents for inclusion therein. They will also render an opinion as to the adequacy of the disclosure document to the underwriter. FISCAL IMPACT Costs of the proposed consulting services range from $105,000 to $165,000 plus $1,000 out-of-pocket expenses, depending on the final structure and sequence of financing. The lower fee represents a single series for electric and water, but with electric's taxable bonds in separate series under the same issuance; the higher fee represents separate issuance of electric revenue bonds (taxable and tax exempt) and water refunding bonds. Fees will be reimbursed from the bond proceeds, hence no fiscal impact to the operating budget. Prepared by: J. Hsu 016 Ti, E . thZ AT1i CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 28, 2003 SUBJECT: ADDITIONAL FUNDS TO THE CONTRACT OF WREN & ASSOCIATES FOR INSPECTION ON W-183, NORTHERN TRANSMISSION LINE RECOMMENDATION It is recommended that the Utility Board/City Council approve the addition of $10,000 to the contract amount of Wren &Associates for inspection services on project W-183. BACKGROUND Project W-183, the Northern Transmission Line, is due to be completed by May 20, 2003. However, due to protracted negotiations with the various entities along the pipeline alignment for easements and licenses to install the pipeline, the project has moved more slowly than anticipated, and more inspection time than anticipated has been necessary to assure the proper installation of the pipeline. The base contract for $40,000 for inspection services for this project was approved in September, 2002. As this project is being funded by a third parry, the cost of inspection is an expense that will be reimbursed to the City by that third party once the total inspection cost is finalized. FISCAL IMPACT The fiscal Impact of this payment is zero because the final inspection cost will be reimbursed by the third party upon completion of Project W-183. Prepared by: Chet Anderson, Assistant Director- Water Operations 017 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES — , / DATE: APRIL 28, 2003 j� SUBJECT: AWARD OF CONTRACT FOR PROJECT W-184, GLADSTONE STREET 20 -INCH WATERLINE REHABILITATION PROJECT RECOMMENDATION It is recommended that the Utility Board/City Council approve the award of contract to Doty Bros. Construction for the construction of Project W-184, 20 -inch Waterline Rehabilitation. BACKGROUND The Water Division intends to pump Well No. 10 to supply water to the southerly portions of the Azusa Light & Water service area water system, south of the 210 Freeway. The existing 20 -inch pipeline in Gladstone from Well No. 10 is over 75 years old and requires relining to ensure that it will not leak when placed in service on a continuous basis. Doty Bros.' Bid for the construction of the project is $1,051,720.66. The bids of the second and third low bidders were ARB Inc., $1,284,855.00, and Valverde Construction, $1,383,085.00 . Bids were publicly opened April 21, 2003. FISCAL IMPACT Fiscal impact of the project is negligible as the construction cost of the project will be reimbursed by other parties. Prepared by: Chet Anderson, Assistant Director of Water Operations DUO ftTIT` 11 TO: FROM: AGENDA ITEM HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 28, 2003 SUBJECT: SAN GABRIEL INTERPRETIVE CENTER AND U.S. FOREST SERVICE ENTRANCE CENTER Attachments submitted by Suzanne Avila In regard to the above subject. 019 AZUSA RNER ROCK MNN BUILDING ART WAU- 1 AZUSARNER ROCK BASE 14 SF TICKETING DOOR INR:RPNETNE GALLERY DRNETIRU OVERHANG W/RNERROCKRASE \ A2URA RIVER ROCK SREROCK MNN BUILDING DRNE LANE 1 Angeles National Forest Gateway City of Azusa O � 1 ENTRY GARDEN LARGE ROCK.' FEATURE BURGING SGIIARE FOOTAGE NETUSABLEAREA 405 SF TOTAL USABLE AREA 1474 SF Floor Plan scale 3132' -1'-0' 4/21/2003 Office of Sustainable Architecture MNN BUILDING _ ENTRY LOBBY 14 SF ` �� INR:RPNETNE GALLERY 439 SF ' OPEN OFFICE 29S SF BATHROOM 9BSF .T.._._.T I PRNAI[OFE FIL RS F �'ARKING B PUBLX;—i MECHANICAL J1 SF RESTROOM NET USABLE AREA 1069 SF ( - SAWROOM BUILDING ' N ENS ROOM 147 SF MENS ROOM 147 SF STORAGE 111 SF NETUSABLEAREA 405 SF TOTAL USABLE AREA 1474 SF Floor Plan scale 3132' -1'-0' 4/21/2003 Office of Sustainable Architecture W }. ,mw � 1C, y � • . 3 . } Z W W 4� .-y 021 auwinaf gee sole nonenwroaewHrcwmxr. rtnrwrm e[enowwm.wvox[ounwemoe oewnnwibn,noanrtrortwegeenwowm.tor�Fo oe earmrteodutt r�snion rteniwonm eserwn avwme w�nsroen ai r�snwn mnr rnsr se wr�ixeo errowuawr ceunons wwenme. 022 l ApnjS Al!l!gisea- suopeoiunwwooaEa i esnze broadband telecommunications opportunities: • Government and Institutional Fiber Network ■ Wholesale telecommunications and broadband services • Retail telecommunications and broadband services S Each of the three phases considered the following: . Utilization of existing fiber . Needs of potential users . Network analysis . Market potential (demand) ■ Financial analysis . Conclusions and recommendations 3 • Existing infrastructure meets current and near-term needs ■ Current network can support initial video conferencing and VolP • Training on existing capabilities would be beneficial ■ School District is interested in fiber capability but needs key issues to be addressed ■ Coverage of schools outside of City limits ■ Preference for single provider ■ Maintenance of E -Rate funding ■ City network coverage of schools not supported on financials alone o-wpE[K C. nc.v cora'. a,.a ,_e..°.r•�a s^..n,. Base- Ail ouvness resmraems: n=109 Basa=.vi resi0enuarespanaenn. n=301 These services can be provided with or without a broadband network. 5 ana broadband services vary widely: • Broadband services not currently available • Dissatisfaction with service or prices ■ Constituent desire for more choice of vendors • Positioning of community for economic development • Increased quality of life ■ Desire for new revenue sources How a City evaluates telecommunications opportunities depends on what is important to the City. Key Findings: • There is little local voice telephone competition • High speed Internet is available and used 24% of businesses . 21 % of residences Total subscription television use is lower than national average - Subscription Television Penetration The single most important criteria in selecting a telecommunications or broadband service provider for both business and residential constituents The factor providing the greatest dissatisfaction with current vendors: % Less than Completely Satisfied A successful competitive provider in Azusa would need to provide substantial price discounts. Azusa constituents have a moderate willingness to purchase competitive services at discounted prices. The City would be chosen as provider by 35-55% of these customers. 9 23% 23% 18% 25% 23% 24% 37% The City would be chosen as provider by 35-55% of these customers. 9 vllJcJ IIJCII. ■ City funds the entire capital requirement ■ Higher investment and higher revenue to the City . City has full responsibility and control over service marketing ■ Wholesale — The City builds the network and sells access over it to one or more third -party providers ■ Service Providers provide some of the capital . Lower investment and lower revenue to the City ■ Success dependent on Service Providers' retail sales �i For any entity building a telecommunications distribution network: . The more services sold over the same fiber connection, the greater the profit • Traditional local voice telephone service requires significant additional capital and operations expenditure • Failure to achieve anticipated demand is the greatest profitability problem 11. Total 10 Year Gross Revenue for the City of Azusa ' Assumes availability of Service Providers Retail revenue differs from wholesale revenue due to share of market attained and proportion of retail revenue realized by the wholesale network provider. F- V VlJlul III I�j I G_LalltG lcl'vl 111l1u111vuUWi v w 1u yr vuvv l �v services is a long-term investment. assumes availability o/ Ser, to Providers It is unlikely that sufficient service providers will be located in the next two years to enable realization of Net Income EM potential for wholesale service. .13,E with greatest interest in cable television. vivauuanu services ■ The City has the constitutional and statutory authority to provide these services largely free of regulatory oversight. • The deployment of a wholesale network is financially viable if a robust set of service providers can be recruited. This is highly unlikely in the current telecommunications environment. ■ The deployment of a retail network is not financially prudent unless there are overriding community requirements. ■ There is substantial interest in the delivery of selected City services via the Internet that can be accomplished with the constituents' current Internet access. Deployment of a fiber network for delivery of broadband and telecommunications services is not recommended at this time. neve are less costly alternatives tnat mignt be investigated to enhance the City's economic development and quality of life: • Deployment of a wireless "WiFi" high-speed Internet network (wholesale or retail) • Limited high-speed data network to serve larger businesses • Collaboration with other municipalities to create regional wholesale network • Wiring of Monrovia Nursery Housing Development to provide high-speed Internet as a starter project 15 " Azusa Telecommunications Feasibility Study CiL, �OiJ7Cfi i�,esentaiion I IUViva C31 vujCc;uVC d5ses5rnent OT HZUsa-s broadband telecommunications opportunities: • Government and Institutional Fiber Network • Wholesale telecommunications and broadband services • Retail telecommunications and broadband services R�W�jE[K Y Each of the three phases considered the following: . Utilization of existing fiber . Needs of potential users . Network analysis . Market potential (demand) . Financial analysis ■ Conclusions and recommendations 3 Existing infrastructure meets current and near-term needs Current network can support initial video conferencing and VolP Training on existing capabilities would be beneficial School District is interested in fiber capability but needs key issues to be addressed ■ Coverage of schools outside of City limits . Preference for single provider . Maintenance of E -Rate funding • City network coverage of schools not supported on financials alone "� 4 '.asv.v�•.n..a Baso=All residential respana %;n=301 These services can be provided with or without a broadband network. 5 and broadband services vary widely: Broadband services not currently available Dissatisfaction with service or prices Constituent desire for more choice of vendors • Positioning of community for economic development • Increased quality of life • Desire for new revenue sources How a City evaluates telecommunications opportunities depends on what is important to the City. R M Key Findings: • There is little local voice telephone competition • High speed Internet is available and used . 24% of businesses . 21 % of residences Total subscription television use is lower than national average Subscription Television Penetration 7 The single most important criteria in selecting a telecommunications or broadband service provider for both business and residential constituents The factor providing the greatest dissatisfaction with current vendors: % Less than Completely Satisfied A successful competitive provider in Azusa would need to provide substantial price discounts. E-3 Azusa constituents have a moderate willingness to purchase competitive services at discounted prices. The City would be chosen as provider by 35-55% of these customers. 9 . rNcian — I fe UIty orrers an services itselt. . City funds the entire capital requirement . Higher investment and higher revenue to the City . City has full responsibility and control over service marketing Wholesale — The City builds the network and sells access over it to one or more third -party providers . Service Providers provide some of the capital . Lower investment and lower revenue to the City . Success dependent on Service Providers' retail sales 10 For any entity building a telecommunications distribution network: . The more services sold over the same fiber connection, the greater the profit . Traditional local voice telephone service requires significant additional capital and operations expenditure • Failure to achieve anticipated demand is the greatest profitability problem Total 10 Year Gross Revenue for the City of Azusa Assumes availability of Service Providers Retail revenue differs from wholesale revenue due to share of market attained and proportion of retail revenue realized by the wholesale network provider. 12 X Provisioning retail telecommunications and broadband services is a long-term investment. Assumes availability of Service Pmviders It is unlikely that sufficient service providers will be located in the next two years to enable realization of Net Income j potential for wholesale service. IK? ----------- --•••. •..• •.,., IIIIVIIIVOIIVIIJ CUIu ulucluudiiu services with greatest interest in cable television. ■ The City has the constitutional and statutory authority to provide these services largely free of regulatory oversight. • The deployment of a wholesale network is financially viable if a robust set of service providers can be recruited. This is highly unlikely in the current telecommunications environment. • The deployment of a retail network is not financially prudent unless there are overriding community requirements. • There is substantial interest in the delivery of selected City services via the Internet that can be accomplished with the constituents' current Internet access. Deployment of a fiber network for delivery of broadband and telecommunications services is not recommended at this time. 14 nere are less cosuy alternatives tnat might be investigated to enhance the City's economic development and quality of life: Deployment of a wireless "WiFi" high-speed Internet network (wholesale or retail) • Limited high-speed data network to serve larger businesses • Collaboration with other municipalities to create regional wholesale network • Wiring of Monrovia Nursery Housing Development to provide high-speed Internet as a starter project 15 �.1 % rool AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 28, 2003 SUBJECT: MSW CONSULTANTS AUDIT OF ATHENS SERVICES' DISPOSAL REPORTS RECOMMENDATION It is recommended that the Azusa Utility Board/City Council accept Athens Services' letter and commitment in response to the audit conducted by MSW Consultants on behalf of the City. BACKGROUND On March 24, 2003, the Utility Board continued consideration of a set of recommendations made by MSW Consultants and upheld by staff regarding Athens Services' disposal reporting practices. This item was continued in order to allow Athens more time to respond to the March 24 recommendations, which are restated below for your convenience: 1. Require Athens Services to use sequentially numbered forms to prepare Weighmaster Certificates for all loads collected in the City and received at the Material Recovery Facility (MRF). 2. Require Athens Services to periodically provide "tare only" Weighmaster Certificates documenting the tare weight of its vehicles. 3. Require Athens to provide the City with a monthly list of the loads it collects in the City and delivers to its MRF, which includes the transaction number, date, time, truck number, route, and driver, as well as the gross, tare and net weight of each load. 4. Require Athens to provide explanation as to how they will avoid hauling loads In excess of gross vehicle weight ratings of their trucks. 023 Since the March Utility Board meeting, representatives of Athens Services met with the City Manager and Director of Utilities to discuss each recommendation. Agreement was reached between the City and Athens on modifications to the recommendations and these are set forth in the attached letter and are summarized below: Athens may keep an electronic Weighmaster Certificate for each load received at the Material Recovery Facility (MRF). 2. Athens will provide "tare only" Weighmaster Certificates documenting the tare weight of its vehicles only when a new truck is added to a City of Azusa route. 3. Athens will provide the City with a list of the loads it collects in the City and delivers to its MRF, which includes the transaction number, date, time, truck number, route, and driver, as well as the gross, tare and net weight of each load, only upon the request of the City and only when anomalies are detected in the monthly disposal reports currently provided by Athens to the City. 4. Athens now requires each driver to certify in writing that Athens has a policy against overweight loads, and failure to comply is grounds for termination. Route Supervisors will monitor load weights and promptly address overweights with drivers. While overweight loads may occur from time to time, Athens is confident the number of instances in the City will be significantly reduced. Staff is pleased with Athens' replies and commitments to address our concerns, and recommends that the Utility Board accept Athens' letter. MSW Consultants' report verified that residential barrel customer tons increased by 8.86% from 2000-01 to 2001-02. The estimated cost of processing these tons this last year is about $51,600. MSW Consultants finds, however, that variance in tons collected is within acceptable limits for a year to year comparison. FISCAL IMPACT There is no fiscal impact of adopting recommendations. Growth in residential tons increased costs this last year by over $50,000—if tonnage increase amount holds for term of contract costs will exceed $500,000. Cost of review by MSW Consultants was $8,900. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities n Athens Letter.pdf 024 April 16, 2003 Joe Hsu Director of Utilities City of Azusa 213 E. Foothill Blvd. Azusa, CA 91702 RE: Consultant's Report Dear Joe: 14048 Valley Blv P.O. Box 600( City of Industry, CA 9171600( Fax (626) 330-46E (626) 336-361- Joe 3636; This letter will serve as our response to the recommendations contained in your report to the Azusa Utility Board/City Council regarding MSW Consultants (MSW) review of the accuracy of the solid waste tons reported to the City of Azusa (City) by Athens Services (Athens). MSW reviewed data provided by Athens for approximately 5,628 residential, green waste and bin refuse loads over a two year period. MSW also compared the City's tonnage statistics to those for other jurisdictions (as prepared by the California Integrated Waste Management Board). MSW found the tons reported by Athens as being collected in the City do not appear unreasonable. Recommendation #1— Require Athens to use sequentially numbered forms to prepare weighmaster certificates for all loads collected in the City and received at the Materials Recovery Facility (MRF). Athens' computer system at the MRF identifies each incoming load and creates a separate sequentially numbered weighmaster certificate that is recorded in electronic format, rather than as a printed receipt. This information is stored in the system and specific certificates may be printed as needed. For example, MSW randomly selected certain City loads and were provided certificates for each. Athens believes there are significant advantages to the electronic format including faster turn around for trucks at the MRF, more flexibility in archiving data and a positive environmental impact through paper reduction. Accordingly, we do not concur with your recommendation. Recommendation 02 — Require Athens to periodically provide "tare only" weighmaster certificates documenting the tare weights of its vehicles. The tare weight of every vehicle is recorded in Athens computer system at the MRF. The aforementioned weighmaster certificates include the gross vehicle weight of every incoming load, as well as the tare weight of the truck. The tare weight of each vehicle in the City was reviewed by MSW. They noted that such tare weights were consistently applied, without exception, for all loads received at the MRF. b�k.bow) 025 Page 2 April 16, 2003 Therefore, in response to your recommendation, Athens will provide "tare only" certificates whenever a new truck is added to a City route. However, we do not contemplate providing certificates for spares or any other trucks temporarily servicing the City. Please note that information regarding tare weights of all Athens trucks in the City will be included in the list described in recommendation #3 below. Recommendation #3 — Require Athens to provide the City with a monthly list of the loads it collects in the City and delivers to its MRF, which includes the transaction number, date, time, truck number, route and driver, as well as the gross, tare and net weight of each load. The City receives this data summarized on a monthly basis rather than for each load. The monthly report provides timely data on tons collected by each truck and route and, when compared to previous monthly reports, can identify seasonal or long term trends. Daily fluctuations may occur for a variety of reasons, some that may have very little impact on an entire month. We do not believe reporting the details of each load would be useful to the City on a regular basis, however Athens agrees to provide such data, upon your reasonable request, when anomalies are detected in the monthly reports. Recommendation #d — Require Athens to provide an explanation as to how they will avoid hauling loads in excess of gross vehicle weight ratings of their trucks. Athens will comply with your recommendation. Athens now requires that every driver at Athens must certify in writing he has been advised of Athens policy against overweight loads and understands that failure to comply with such policy may be grounds for termination. Route supervisors will monitor load weights and promptly address overweights with the drivers. While - overweight loads may occur from time to time, Athens is confident the number of instances in the City will be significantly reduced. If you have any questions regarding our response, please give Dennis or me a call. Since ely, Kevin P. Hanifin` Chief Financial Officer KPH:bw cc: Dennis Chiappetta, Chief Operating Officer tLO�> 026 TO: FROM: DATE: SUBJECT: ,44P,fii, AGENDA ITEM HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL JOSEPH F. HSU, DIRECTOR OF UTILITIES APRIL 28, 2003 APPROVAL OF ENGINEERING AND DESIGN AGREEMENT WITH SOUTHERN CALIFORNIA EDISON COMPANY FOR THE NEW DISTRIBUTION SUBSTATION RECOMMENDATION It Is recommended that the Utility Board/City Council approve the Engineering and Design Agreement (Agreement) with Southern California Edison Company (Edison) for the new distribution substation in principle and authorize the Mayor to execute the Agreement upon the preparation of execution copies which are subject to legal counsel approval and which must be in accordance with provisions that have been negotiated by the parties. It is further recommended that the approval of the Agreement be subject to the approval of the FY 02-03 capital budget amendment for the new substation to be submitted for City Council approval on May 5, 2003. BACKGROUND As a part of the City's new distribution substation project, Edison will need to engineer, design, and build substantial system upgrade&on Edison's distribution system to accommodate the new interconnection for City's new substation. Staff has coordinated with Edison in the past several months to reach agreement on (1) the method of service, and (2) the contractual terms and conditions of the interconnected facilities, including cost responsibilities of Edison's upgrades. Recently, staff and Edison have reached an agreement on the method of service. However, parties still remain in dispute on the contractual terms and conditions of the interconnection service. In order to not further delay the engineering, design, and construction of the needed upgrades by Edison, parties agreed to bifurcate the engineering, design, and construction task from the contractual negotiations. The proposed Agreement will accomplish this goal as follows: 027 1. The City will provide the necessary funding to Edison for the engineering, design, and construction of the needed system upgrades. 2. The City and Edison will engage in good faith negotiation for 90 days to resolve the remaining contractual terms and conditions in dispute. This provision is to be added to the Agreement by Edison. If parties cannot reach a final agreement within the 90 -day period, then Edison shall file all such remaining contractual issues at FERC for resolution. Parties will abide by the final order by FERC. This process for ultimate resolution of the issues is provided for in the Wholesale Distribution Access Tariff ("WDAT") which applies to the City and Edison. This provision is to be added to the Agreement by Edison. This bifurcated approach is expected to provide more time for parties to negotiate the final agreement while allowing the interconnection work to proceed without further delay. FISCAL IMPACT The estimated funding by the City under the Agreement is approximately $5.5 million for Edison system upgrades. The City is expected to disburse up to $3.8 million by the end of June and $1.7 million by the end of October of this year. This expenditure only became known early this year when Edison required the City to provide upfront payment for Edison system upgrades. Staff will submit a capital budget amendment to the FY 02-03 capital budget for the new substation for City Council consideration and approval at the May 5 City Council meeting. Said budget amendment will increase the original budget by $5.5 million for the cost of Edison system upgrades. Initially, funds will be advanced from the Light Fund available cash reserves to be replenished by the anticipated bond proceeds later this year. Prepared by: Bob Tang, Assistant Director Resource Management Federico Langit, Senior Electrical Engineer Attachment: WNUI ELI Edison Letter Agnt 422.doc MW Southern California Edison Company FERC Electric Tariff, First Revised Volume No. 5 Original Sheet No. 1 Service Agreement No. February _, 2003 Joseph F. Hsu Director of Utilities Azusa Light and Water 729 N. Azusa Ave. Azusa, CA 91702 Dear Mr. Hsu: Azusa intends to construct a substation ("Kirkwall Substation") to serve load within the City of Azusa ("Azusa'). Azusa submitted a request to SCE for 28 MW of wholesale Distribution Service in accordance with SCE's Wholesale Distribution Access Tariff ("WDAT") from the ISO Grid at SCE's Rio Hondo Substation to Azusa at a new SCE - Azusa interconnection at Kirkwall Substation. Azusa requested an in-service date of February 1, 2004. SCE's provision of wholesale Distribution Service to Azusa will require FERC acceptance for filing of a WDAT Service Agreement. It is the position of SCE that such Service will also require FERC acceptance for filing of and an Interconnection Facilities Agreement ("IFA") between SCE and Azusa,. It is the position of Azusa that only a WDAT Service Agreement is required in order to ,memorialize the terms under which SCE would construct Direct Assignment Facilities, Distribution System Upgrades and any other system facilities, modifications and upgrades required to provide Distribution Service to Azusa. Azusagnd SCE have discussed the schedule of activities for int erconnection and SCE ----------------------------------------------------------------------------------------------------- informed Azusa -that a-ninterconnection in-service date depends in part on the time required by SCE to obtain approval from the CPUC to construct interconnection facilities required to provide Distribution Service and on the procurement of equipment and material required for construction of facilities required for SCE to provide wholesale Distribution Service to Azusa. In recognition of the lead-time required to obtain CPUC approval and to procure equipment and material to construct facilities, Azusa requested that SCE commence engineering, design and preparation of specifications for procurement of equipment and material. SCE is willing to commence such work. Consequently, the parties desire that SCE commence the engineering, design, and preparation of specifications for procurement of equipment and material as soon as possible. Issued by: James A. Cuillier, Manager, FERC Rates & Regulation Issued on: Effective: --- Deleted: which would Dekd d: Deleted I 9 Inserted:I 9 Deleted: Az Deleted: 029 Southern California Edison Company FERC Electric Tariff, First Revised Volume No. 5 Original Sheet No. 2 Service Agreement No. _ The purpose of this letter agreement ("Agreement") is to define the terms and conditions under which SCE will commence performance of the engineering, design, and preparation of specifications necessary for SCE to install facilities capable of serving 28 hIW of load and to commence wholesale Distribution Service to Azusa on February 1, 2004. The parties, therefore, agree as follows: 1. Upon execution of this Agreement, SCE will commence engineering, design, and preparation of specifications for the interconnection facilities required to provide Distribution Service to Azusa. Such engineering and design will include an estimated in-service date on which SCE would be able to commence providing Deleted: I Distribution Service to Azusa. _ 2. Azusa will pay all of SCE's charges and expenses incurred for engineering, design, and preparation of specifications for the interconnection facilities. Such charges and expenses shall include, without limitation, SCE's costs of its employees and contractors including related overheads, specifically connected to the engineering, design andrppe aration of specifications for the interconnection facilities, Such charges and expenses are estimated to be $200,000. 3. Azusa shall initially pay to SCE a deposit of $200,000 for SCE to commence work under the terms of this Agreement. SCE shall notify Azusa in writing within a reasonable time if SCE learns that charges and expenses are likely to exceed such amount. In such notification, SCE shall specify the additional amount required to be paid by Azusa for SCE to continue work under the terms of this Agreement. Azusa shall pay such additional deposit amount within 30 calendar days of SCE's notification. If such payment is not received by SCE within the stated time period, this Agreement shall terminate immediately upon written notice by SCE. Upon execution of this Agreement, SCE shall provide written monthly progress reports to Azusa regarding the work performed and the amounts expended against the $200,000 deposit. If the total amount of charges and expenses are less than $200.000, SCE shall refund to Azusa any amounts that of any deposit or the need for any additional deposit shall be resolved pursuant to Deleted: the dispute resolution process set forth in the WDAT_ 4. SCE and Azusa intend to enter into a WDAT Service Agreement and interconnection facilities agreement that will state terms for Azusa's payment of SCE's costs incurred for performing the work included in this Agreement. SCE desires to also have the parties enter into an interconnection facilities agreement in connection with said work However, it is the position of Azusa that such an agreement is not required and is not appropriate. The WDAT Service Agreement, and an interconnection facilities agreement if ultimately determined to be necessary. Such agreements would, upon effectiveness, supersede this Agreement. Azusa's deposits under the terms of this Agreement, including any additional Issued by: James A. Cuillier, Manager, FERC Rates & Regulation Issued on: Effective: ,i 0 Southem Califomia Edison Company FERC Electric Tariff, First Revised Volume No. 5 Original Sheet No. 3 Service Agreement No. _ deposit amount pursuant to Section 3 above, would be credited to the amount due under the terms of the WDAT Service Agreement and an interconnection facilities agreement if such an agreement is determined to be necessary. 5. SCE and Azusa are entering into this Agreement in order to expedite engineering, design, and preparation of specifications. SCE does not warrant that such work will be completed by any specific date, and SCE shall not be liable for any cost or damage incurred by Azusa because of any delay in the completion of the interconnection facilities or distribution system upgrades. SCE shall use commercially reasonable efforts to achieve completion of work in order to complete construction by February 1, 2004. 6. Subject to Section 7 below, this Agreement shall terminate upon the earliest of (i) written notice from SCE to Azusa in accordance with Section 3, (ii) the effective date of the WDAT Service Agreement as defined in the WDAT Service Agreement; or (iii) written notice from Azusa to SCE at any time. Azusa shall have the right to terminate this Agreement at its sole discretion; in such event, termination will become effective two business days after receipt by SCE of termination notice. Upon receipt by SCE of the termination notice. SCE shall Deleted: cease all work and shall cease incurrine any further charges or expenses. , .".- 7. Azusa's obligations to pay charges and expenses incurred or irrevocably committed to be incurred pursuant to Section 2 above will survive termination of this Agreement, except insofar as payment of such charges and expenses is provided for in a WDAT Service Agreement and interconnection facilities agreement that is accepted for filing by the FERC and becomes effective. In the event of termination in the absence of such effective WDAT Service Agreement and interconnection facilities agreement, SCE shall send an accounting to Azusa of all such charges and expenses within 60 days from the date of termination. 8. Azusa shall at all times indemnify, defend, and save SCE harmless from any and all damages, losses, claims (including claims and actions relating to injury to or death of any person or damage to property), demands, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from SCE's performance of its obligations under this Agreement, except in cases of negligence or intentional wrongdoing by SCE. 9. In the event of the occurrence of an Uncontrollable Force which prevents a party from performing any of its obligations under this Agreement, such party shall (i) immediately notify the other party in writing of the occurrence of such Uncontrollable Force, (ii) not be entitled to suspend performance in any greater scope or longer duration than is required by the Uncontrollable Force, (iii) use its best efforts to mitigate the effects of such uncontrollable Force, remedy its inability to perform, and resume full performance hereunder, (iv) keep the other party apprised of such efforts on a continual basis and (v) provide written notice of the resumption of performance hereunder. Notwithstanding any of the foregoing, the settlement of any strike, lockout, or labor dispute constituting an Issued by: James A Cuillier, Manager, FERC Rates & Regulation Issued on: Effective: 031 Southern California Edison Company FERC Electric Tariff, First Revised Volume No. 5 Original Sheet No. 4 Service Agreement No. _ Uncontrollable Force shall be within the sole discretion of the party involved in such strike, lockout, or labor dispute and the requirement that a party must use its best efforts to remedy the cause of the Uncontrollable Force and mitigate its effects and resume full performance hereunder shall not apply to strikes, lockouts, or labor disputes. No party will be considered in default as to any obligation under this Agreement if prevented from fulfilling the obligation due to the occurrence of an Uncontrollable Force. For purposes of this Agreement, an Uncontrollable Force shall be any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, story flood, earthquake, explosion, any curtailment, order, regulation or restriction imposed by governmental military or lawfully established civilian authorities or any other cause beyond the reasonable control of the party which could not be avoided through the exercise of prudent Azusa practice. . 10. This Agreement constitutes the complete and final expression of the agreement between the parties and is intended as a complete and exclusive statement of the terms of their agreement which supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications, and other agreements which may have been made in connection with the subject matter of this Agreement. Nothing in this Agreement is intended or shall be deemed to require SCE or Azusa to enter into any other agreement, including without limitation a WDAT Service Agreement or interconnection facilities agreement. 11. Any waiver at any time by either party of its rights with respect to a default under this Agreement, or with respect to any other matter arising from this Agreement, shall not be deemed a waiver with respect to any subsequent default or other matter arising in connection therewith. Any delay, with the exception of the statutory period of limitation in assessing or enforcing any right, shall not be deemed a waiver of such right. 12. The covenants, obligations, and liabilities of the parties are intended to be several and not joint or collective, and nothing contained in this Agreement shall ever be construed to create an association, joint venture, trust or partnership, or to impose a trust or partnership covenant, obligation, or liability on or with regard to either party. Each party shall be individually responsible for its own covenants, obligations, and liabilities as provided in this Agreement. Neither party shall be under the control of the other party. Neither party shall be the agent of or have a right or power to bind the other party without such other party's express written consent. 13. The parties do not intend to create rights in, or to grant remedies to, any third party as a beneficiary either of this Agreement or of any duty, covenant, obligation, or undertaking established herein. 14. This Agreement shall be interpreted, governed by and construed under the laws of the State of California, without regard to the principles of conflict of laws thereof, Issued by: James A. Cuillier, Manager, FERC Rates & Regulation Issued on: Effective: 032 Southern California Edison Company FERC Electric Tariff, First Revised Volume No. 5 Original Sheet No. 5 Service Agreement No. _ or the laws of the United States, as applicable, as if executed and to be performed wholly within the United States. 15. This Agreement shall be binding upon the parties and their successors and assigns. No parry shall assign this Agreement without the other party's prior written consent. 16. Ambiguities or uncertainties in the wording of this Agreement shall not be construed for or against any party, but shall be construed in the manner that most accurately reflects the parties' intent as of the date they executed this Agreement. 17. SCE will maintain records and accounts of all costs incurred in sufficient detail to allow verification of all costs incurred, including, but not limited to, labor and associated labor costs, material and supplies, outside services, and administrative and general expenses. Azusa shall have the right to audit SCE's records as necessary and as appropriate in order to verify costs incurred by SCE. Any audit requested by Azusa shall be completed, and written notice of any audit dispute provided to SCE's representative, within one hundred eighty (180) days following receipt by Azusa of SCE's notification of the final costs. 18. This Agreement shall be subject to acceptance for filing by the FERC. SCE shall file this Agreement for acceptance by the FERC, and Azusa shall support acceptance of this Agreement as filed, including waiver of any necessary filing and notice requirements. Such support shall include a written statement of concurrence with such filing, if requested by SCE. SOUTHERN CALIFORNIA EDISON COMPANY A. L. Grant Vice President ACCEPTED AND AGREED to this day of 2003 CITY OF AZUSA Name: Joseph F. Hsu Director of Utilities, Azusa Light and Water Issued by: James A. Cuillier, Manager, FERC Rates & Regulation Issued on: Effective: 033 U1 INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 28, 2003 SUBJECT: CUSTOMER SERVICE TRAINING AND MEASURE -X FOLLOW-UPS RECOMMENDATION None. BACKGROUND Azusa Light & Water achieved high marks from customers during a survey conducted in the fall of 2002. The combined Excellent and Good rating was 95%. According to Satisfaction Development Systems, the firm conducting the survey, customer loyalty comes from customers who feel they receive excellent service. In our efforts to continuously improve, Azusa Light & Water contracted with MEASURE -X to provide customer service training for all field employees, aiming at customer issues they face. The training consisted of two half day sessions and will be followed up in three months with one half day workshop and the last workshop three months after that. Later in the year, MEASURE -X will conduct a similar training for office personnel, targeting their customer contact areas. Part of the process was to seek ideas for improving service from field employees. This list, along with MEASURE -X recommendations and the results of a brief telephone follow-up of recent.field visits on customer property, was included in the report. All Assistant Directors with field employees reporting to them met and went over the report. Attached Is a list of 35 employee ideas out of the 56 total that the Assistant Directors agreed could be implemented with no additional cost and six of the ten MEASURE -X recommendations. Several of the remaining ideas and recommendations were duplicated on the list. The next step is to meet with employees and share the report results and the solution list. Improving service will be the responsibility of everyone, as noted on the list. FISCAL IMPACT None. Prepared by: Karen Vanca, Assistant Director of Customer Care and Solutions 034 SUMMARY OF AZUSA LIGHT & WATER EMPLOYEE IDEAS THROUGH BRAINSTORMING SESSIONS How To Improve The Experience For Both New And Existing Customers Employee Suggestions Solutions Target Completed Responsible Date Date 1. Reassure customer that there will be no charge 1. Follow these and bring good attitudes Employees. Now or cost involved in meter change -out. to work. 2. Smile. 3. Explain that we are not Edison. 2. Put posters up in visible locations to Assistant Directors 5/1/03 4. Be agreeable. remind employees. 5. Let customer out of service know the time frame of expected work being done, and what and why it is being done. 6. Explain who is doing the work. 7. Let the customer know the City cares about their needs. 8. Work with the customer to resolve the situation. 9. Have a positive attitude! 10. Be courteous. 11. Follow-up on service problem. 12. Leave door hanger saying you were here and why. 13. Be on time. 14. Be honest. 15. Assure customers that service will be returned to normal ASAP. 16. Park truck in customer's view. 17. Don't pass the buck! 18. State name and business - greeting. 19. Assure services will be returned to normal as soon as possible. Better inter -departmental communication; relay Contact City operator and request all TK. Vanca 4/15/03 Messages quicker. Calls for AL&W go to ext. 5225. G7' W Bilingual training aids for field employees. 1. Quiz field employees for types of K. Vanca via 6/1/03 questions customers ask and information R. Scholes employees need to provide. 2. Create "cheat" sheets and laminate them for field employees. Have proper information before dealing with include more information on work K. Vanca 4/15/03 customers. orders including phone number, if English or Spanish-speaking customer (if information available); write legibly. Neat and proper attire. Monitor employee dress for neatness Assistant Directors 4/15/03 and proper attire. Customer education. Send monthly bill inserts to educate K. Vanca and Ongoing In customers about their utility. M. Quiroz process Water certification training, work- Assistant Directors Ongoing More training. related training, customer service training will be provided periodically. Be on time - to work and to customer Pay attention to time - it shows respect Employees. Now appointments. to others. Management to monitor. Complete work orders in a timely manner. 1. A sample of work orders and service Lead - D. Ramirez 9/1/03 orders will be tracked through the office process and hang-ups will be identified. 2. A combined work order/service order will be created for electric. Mandatory access for customer requested shut-off When customers call, CSRs will give K. Vanca 4/15/03 customer a window of time for the shut- or tum -ons. off or turn -on and request the customer to make access to the meter available. G7' W Update customer numbers As customers call, update their phone K. Vanca ongoing numbers. Get rid of audex answering system - voice mail. This is out of our control. It is a City N/A N/A system and is efficient if set up properly. This will not be changed. Setup a payment arrangement system that keeps We do this but when customers break N/A N/A the lights and water on. their promise, service must be discontinued. Brochure explaining customer's responsibility in This is in the new Customer Guidebook. K. Vanca Done. monitoring their own consumption. Customer education about water and conservation. This is in the new Customer Guidebook. K. Vanca Done. Seminars available to ALL field personnel to This began with Measure -X training. Assistant Directors enhance communications with customer and office Other training will be offered employees. periodically. Comparison rate schedule to all customers for cost This has been a bill message and insert K. Vanca Done. of other utilities in the area. and is also on the Azusa Light & Water web site. MEASUREA RECOMMENDATIONS Co -creation of goals with staff. Involve staff in identifying a couple of Assistant Directors 8/1/03 ideas we wish to implement. Establish specific goals to put those ideas into action. Make them easy to measure and achievable. O W Meetings for employees. Schedule a bi-monthly staff meeting to Director strengthen communication between inside and outside staff. Identify one issue that could be improved and ask for everyone to bring one suggestion as a possible solution. Meetings for supervisors and managers. Meet on a regular basis (quarterly) to Director identify ways to improve the ways their divisions work together. Job Shadow Develop a process where customer Assistant Directors 12/31/03 service staff can spend a day in the field with field staff and then reverse the process. This is already in process within Consumer Services. We will expand it to include the Electric and Water divisions. Employee Recognition Recognize employees when they Assistant Directors Ongoing demonstrate good customer service to our customers. Customer Notification. Meter readers and technicians should Done. leave a tag on every door to notify the customer of service performed. 4/1/03; training/ list of short-term fixes from Measure -X report 4-03 O 4 W OD INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD. AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES<, - DATE: APRIL 28, 2003 SUBJECT: AZUSA LIGHT &WATER'S ELECTRIC DIVISION RELIABILITY REPORT FOR YEARS 20018.2002 RECOMMENDATION None. BACKGROUND On August 12, 2002, the Electrical Division purchased a reliability software program through American Public Power Association, "APPA". The reliability program was created for APPA by a public power utility in Oklahoma under the Deeds program and was intended for use by small utilities. The purchase of the new software was very timely, because Mayor Madrid had just returned from an APPA Conference where the importance of tracking electrical system reliability was discussed. Attached is Azusa's reliability report for the years 2001 8.2002, using the three most widely used indices for tracking system reliability: SAIFI, SAIDI, and CAIDI (See Appendix A— Definitions, located at the end of the report). The fourth index listed in the report is ASAI, which some utilities are now using, according to Transmission & Distribution magazine, to tout the reliability of their electrical systems to their customers. The APPA information is for the year 2001 only; APPA has not released data for 2002 as of this date. FISCAL IMPACT' None. Prepared by: DMR Attachment: En Reliability Study Presentation 039 AZUSA LIGHT & WATER Azusa Light and Water Electric Division RELIABILITY REPORT 2001-2002 I RELIABILITY INDEX FORMULA SAIFI = Total Number of Customer Interruption Total Number of Customer Served SAI D I = 5 -Customer Interruption Durations Total Number of Customers Served CAI D I = SCustomer Interruption Duration Total Number of Customer Interruptions ASAI = Customer Hours Service Availability Customer Hours Service Demand 0 r RELIABILITY INDEX AZUSA LIGHT AND WATER TYPICAL RELIABILITY INDEX FOR U.S. UTILITIES SAIFI SAIDI CAIDI ASAI (%) 2001 0.12 15.74 135.22 99.9970 2002 0.14 15.69 113.57 199.9970 TYPICAL RELIABILITY INDEX FOR U.S. UTILITIES 1 SAIFI SAIDI CAIDI ASAI (%) 2001 4.68 55.88 91.03 Not available 1 RELIABILITY INDEX AZUSA LIGHT AND WATER TYPICAL RELIABILITY INDEX FOR REGION 6 (NEVADA, ARIZONA, CALIFORNIA) SAIFI SAIDI CAIDI ASAI (%) 2001 0.12 15.74 135.22 99.9970 2002 0.14 15.69 1 113.57 99.9970 _j TYPICAL RELIABILITY INDEX FOR REGION 6 (NEVADA, ARIZONA, CALIFORNIA) SAIFI SAIDI CAIDI ASAI (%) 2001 0.94 52.43 83.37 Not available RELIABILITY INDEX AZUSA LIGHT AND WATER TYPICAL RELIABILITY INDEX PER CUSTOMER METER CATEGORY (10,000 TO 20,000 METERS) SAIFI SAIDI CAIDI ASAI (%) 2001 0.12 15.74 135.22 99.9970 2002 0.14 15.69 113.57 99.9970 TYPICAL RELIABILITY INDEX PER CUSTOMER METER CATEGORY (10,000 TO 20,000 METERS) 9 SAIFI SAIDI CAIDI ASAI (%) 2001 11.77 74.16 65.07 Not available 9 AZUSA L & W RELIABILITY COMPARISON 2001-2002 160 140 120 100 80 60 40 20 ,.. ML 0 9x. z aawe s�. SAIFI SAIDI CAIDI ASAI (%) 0 CA 102001 ■ 2002 APPENDIX A - Definitions • System Average Interruption Frequency In (SAIFI) — This is defined as the average number of times that a customer is interrupted during a specified time period. It is determined by dividing the total number of customers interrupted in a time period by the average number of customers served. The resulting unit is "interruptions per customer." • System Average Interruption Duration Index (SAIDI) — This is defined as the average interruption duration for customers served during a specified time period. It is determined by summing the customer -minutes off for each interruption during a specified time period and dividing the sum by the average number of customers served during that period. The unit is minutes. This index enables the utility to report how many customers would have been out of service if all customers were out at one time. • Customer Average Interruption Duration Index (CAIDI) - This is defined as the average length of an interruption, weighted by the number of customers affected, for customers interrupted during a specific time period. It is calculated by summing the customer minutes off during each interruption in the time period and dividing this sum by the number of customers experiencing one or more sustained interruptions during the time period. The resulting unit is minutes. The index enables utilities to report the average duration of a customer outage for those customers affected. • Average Service Availability In (ASAI) — is a measure of the average availability of the sub transmission and distribution systems to serve customers. It is the ratio of. the total customer minutes that service was available to the total customer minutes demanded in a time period. It is normally expressed as a percentage. A -P INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 28, 2003 SUBJECT: YARD WASTE BARREL PROGRAM UPDATE RECOMMENDATION It is recommended that the Utility Board/City Council review this report and provide staff with any feedback appropriate to this program. BACKGROUND In 2002, the Utility Board authorized the purchase and distribution of yard waste barrels to residents to enhance the profile of the City's yard waste collection program and to divert more yard waste. Athens Services agreed to service these barrels as manual yard waste collection was within the purview of the franchise agreement. At the time, staff estimated that it would take at least 5 years to recover the cost of the barrels. It was reported that cost recovery would occur from savings that would be realized from disposing greater amounts of separated green waste at a cost $11 per ton, versus paying to have green waste processed as mixed waste through Athens' material recovery facility (MRF) at $47.69 per ton. Barrels were purchased and were distributed to most residents in November. From December through March, yard waste tons collected increased by 38% on average per month. The 311.75 additional tons of yard waste that were collected during this 4 -month period, will save about $11,400. This savings will be factored into the upcoming refuse rate adjustment. FISCAL IMPACT The savings resulting from the yard waste program, while modest, is expected to offset the cost of the barrels within 5 years as projected originally by staff; the savings will also help mitigate some costs associated with the higher than expected growth in tonnage these last couple years. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities 047 TO FROM: DATE: 4 D4 A:M,& INFORMATIONAL ITEM HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL JOSEPH F. HSU, DIRECTOR OF UTILITIES APRIL 28, 2003 SUBJECT: FY 2002-2003 WORK PLAN UPDATES FOR AZUSA LIGHT & WATER RECOMMENDATION It is recommended that the Azusa Utility Board/City Council receive the attached work plan updates for Azusa Light & Water for review and comment. BACKGROUND Staff from different divisions of Azusa Light & Water provided work plan updates for the Utility Board's consideration and input. The updates cover the third quarter of fiscal year 2002-03, from January 1, 2003 to March 31, 2003. The Board may provide input or comments regarding specific projects. FISCAL IMPACT There is no fiscal impact as a result of this report. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Steven Yang, Administrative Technician Attachment: WIM 3rd Qtr FY 02-03.doc / M CITY OF AZUSA Azusa Light and Water Department FY2002-03 Work Plan Updates Report Third Quarter Table of Contents Communication.......................................................................................................................................... l AzusaToday.......................................................................................................................................... l AzusaTomorrow...................................................................................................................................1 Economic Development Plan (for Redevelopment Department)......................................................2 HandAcross Azusa................................................................................................................................2 CustomerService.......................................................................................................................................2 Automated Meter Reading (AMR)...................................................................................................... 2 Improve Customer Communications..................................................................................................3 Improve Customer Satisfaction............................................................................................................3 PublicBenefit Programs.......................................................................................................................3 RouteReorganization............................................................................................................................4 WOW- Premier Customers.................................................................................................................4 ElectricOperations....................................................................................................................................4 Distribution Sys. Relay Upgrade (Monitoring & Automation Phase-l(CIP)..................................4 Engineer, Procure, Construct (EPC) New Substation + Distribution System .................................5 InfraredInspection................................................................................................................................5 Owl/Hilltop Distribution Circuit Line Extensions (CIP)...................................................................5 Pole Maintenance/Inspection Testing..................................................................................................6 Substation Site Acquisition "New Substation" (CIP)...........................................................:............6 Tree Maintenance/Circuit Trimming.................................:................................................................6 L&W Administration................................................................................................................................7 City Facilities Energy Audit/Energy Efficiency Retrofits.................................................................7 Telecommunications.............................................................................................................................. 7 WorkOrder System Review.................................................................................................................8 Work Plan Update Reporting System..........................:......................................................................9 MIS.............................................................................................................................................................. 9 Customer Information System Working Group................................................................................9 PhaseII — CIS online system..............................................................................................................10 Update Azusa/Colton CIS system to final PowerHouse version.....................................................10 Upgrade Avaya G3r (OS, VOIP, VAL, BCMS)...............................................................................10 PowerResource.......................................................................................................................................11 ContractNegotiations.........................................................................................................................11 Renewable Resource Procurement.....................................................................................................11 Resolution of Regulatory Issues.........................................................................................................12 RetailRates Revision...........................................................................................................................13 San Juan Unit #3 Performance Mitigation.......................................................................................14 WasteManagement.................................................................................................................................14 DOC Beverage Container Recycling Program.................................................................................14 Dumpthat Junk Month......................................................................................................................15 Green Waste Barrel Distribution Program......................................................................................15 MRFProgram......................................................................................................................................16 Used Oil Recycling Block Grant Program........................................................................................16 i 049 ii 050 WaterOperations....................................................................................................................................16 12 -inch crossing Dalton Wash............................................................................................................16 12 -inch pipeline in 6th St.- Virginia to Cerritos Ave........................................................................17 16 -inch pipeline in Baseline from Rockvale to Citrus......................................................................17 1MGMountain Cove Reservoir.........................................................................................................17 20 -inch and 16 -inch pipeline for Mountain Cove.............................................................................17 20 -inch pipe installation- Lakeview Terrace to 10th St and Rockvale Boosters ...........................18 30 -inch pipeline in Dalton from Sierra Madre to 5th......................................................................18 DistributionMain Upgrades...............................................................................................................18 Install radio controls for SCADA.....................................................................:.................................18 Ph1 Heck Booster Pump Station.......................................................................................................19 Pipeline from Citrus & Foothill to Barranca & Alosta....................................................................19 Purchasereplacement vehicles...........................................................................................................19 Rehabilitation of South Reservoir......................................................................................................19 Repairs to Sierra Madre Reservoir....................................................................................................20 Rockvalebooster upgrade ..................................................................................................................20 Spreadingground wells.......................................................................................................................20 Treatment plant sed basin and sludge lagoon design and construction.........................................20 Well2 & 3 discharge upgrade............................................................................................................21 ii 050 Division: ommutiication Work Name: Azusa Today Description: Write, produce and edit a 40 -minute TV show on current events and projects throughout the city of Azusa. The completed show is placed on a program schedule and aired on Azusa government channel 55. Assistant City Manager, Robert Person is the moderator and host of the show. The show is taped at the Charter facilities in Pasadena each month. Work Type: Program Team Leader: Martin Quiroz Team Members: Quarter Ending Update: This quarter we have produced five new television programs, including public information announcement, and a live production of election night outcome. All on a shoe string with no assistance from Charter Communications. Work Name: Azusa Tomorrow Description: Write, photograph and lay -out the monthly Azusa newsletter which gets circulated via the Light and Water utility bills. Work Type: Program Team Leader: Martin Quiroz Team Members: Quarter Ending Update: We changed the "look" of the newsletter and will be incorporating a section that will be devoted to news from Azusa Light & Water. The working title for now is the utility comer. We are also taking the councils suggestion to increase the circulation to heart and will increase our circulation to slightly over 20 thousand. 051 Work Name: Economic Development Plan (for Redevelopment Department) Description: Develop collaterals and an economic development media and publicity plan which will highlight the light industrial project at 10th and Todd and the Mountain. Cove Development, Block 36 and the foothill center project. The purpose of the plan is to generate positive publicity in local and regional media to attract businesses into the Todd development, the renovated Block 36 and homebuyers to the Mountain Cove development. Work Type: Project Team Leader: Martin Quiroz Team Members: Quarter Ending Update: We have begun the design and production work on a large series of collaterals which will be inserted (to meet the needs of the client) into a gate fold packet for economic development. This will be one more tool for the Redevelopment Department. Work Name: Hand Across Azusa Description: Provide support for Human Relations Commission Annual Martin Luther King Event. Work Type: Program Team Leader: Martin Quiroz Team Members: Quarter Ending Update: This project was completed and received much proactive publicity. Division: ustomer Servic Work Name: Automated Meter Reading (AMR) Description: To improve customer service and increase efficiency, radio read meters will be installed on non -access or bad dog accounts. Use of AMR meters will ensure that all reads will be obtained for billing in less time than is presently possible. Appointments with customers and repeat trips to obtain reads will be eliminated. Work Type: Program Team Leader: Derek McFann Team Members: Sallie Acero Quarter Ending Update: 790 AMR meters installed on hard -to -read meters and new Mountain Cove homes to date. There are 109 accounts still on the list for meter hard -to -read meter changeouts. 2 052 Work Name: Description: Work Type: Team Leader: Team Members: Improve Customer Communications Update residential service booklet, including modernizing graphics. Continuously update information on Light & Water's web site. Project Karen Vanca Quarter Ending Update: Completed and mailed. Work Name: Improve Customer Satisfaction Description: Determine service level baseline. Improve customer satisfaction by benchmarking, setting performance targets, training, monitoring and giving employee feedback in key Work Type: customer contact areas. Identify opportunities for office and field employees to Team Leader: provide additional customer services. This is a multiple -year project and ongoing Team Members: measurement of results. Work Type: Project Team Leader: Karen Vanca Team Members: Derek McFann Sallie Acero Quarter Ending Update: Initial field employee customer service training complete. Call Center quality standards complete and in place. Employee teams for World Class Service and Meter Reading have started meeting. Work Name: Public Benefit Programs Description: Develop, implement, and track Public Benefit programs for residential, small, medium, and large business customers. Work Type: Program Team Leader: Karen Vanca Team Members: Paul Reid Quarter Ending Update: There are programs available to every customer segment: residential rebates, residential low-income, small and large customer energy efficiency rebates, and government building retrofits. 053 Work Name: Route Reorganization Description: Reorganization of the meter reading routes will provide better customer service and will Description: allow completion of the reading schedule in less time than is presently required. Work Type: Project Team Leader: Derek McFann Team Members: Sallie Acero Quarter Ending Update: - - Field work on route reorganization 100% complete. Updating the billing system with the changes to begin next quarter. Work Name: WOW - Premier Customers Description: Working with our employee team, identify "premier" customers and how we can provide them knock your socks off service. Work Type: Program Team Leader: Karen Vanca Team Members: Derek McFann Sallie Acero Quarter Ending Update: Employee began meeting this quarter. Division: lectric O eration Work Name: Distribution Sys. Relay Upgrade (Monitoring & Automation Phase-1(CIP) Description: Preventive maintenance and replacement of existing protective devices at Azusa substation needed to improve reliability and continuity of service. Work Type: Project Team Leader: Federico Langit Team Members: Quarter Ending Update: Start construction of pilot project (2 circuits included are Amforge and Sierra Madre). 4 054 Work Name: Engineer, Procure, Construct (EPC) New Substation + Distribution System Description: The addition of the new substation south of the 210 freeway adds flexibility of operation and system reliability. Project is being carried over from fiscal year 2002- 03. A budget of $4.8 million is to be carried for the construction which will start on FY 2002-2003, culminating on FY 2003-2004. Work Type: Project Team Leader: Federico Langit Team Members: Quarter Ending Update: EPC proposals. Coordinate with Edison and make arrangement for 66kV lines to serve new substation. Work Name: Infrared Inspection Description: Annual infrared inspection of 12 kV Overhead lines with infrared equipment and camera to locate hot spots on the electric system, so that preventative maintenance can be preformed. This proactive maintenance helps prevent customer outages. Work Type: Project Team Leader: David Ramirez Team Members: Dan Kjar Quarter Ending Update: No activity. Work Name: Owl/Hilltop Distribution Circuit Line Extensions (CIP) Description: Project Phase 11. Hilltop Circuit will be routed along San Gabriel Ave from Sierra Madre north to Canyon Vista to provide a loop feed with the Owl circuit. The installation of conduit and underground structures are part of San Gabriel Avenue medium project. Work Type: Project Team Leader: David Ramirez Team Members: Federico Langit Quarter Ending Update: The landscape contractor Pima Corporation is installing the electrical conduit and the underground structures. 055 Work Name: Pole Maintenance/Inspection Testing Description: Inspection, testing and treatment of power poles (wood) for stmctuial integrity per maintenance agreement and the reinforcing of poles that are candidates for the Osmo- C-Truss (steel) or Fiber Wrap reinforcement. This proactive program helps prevent Work Type: outages during storm conditions. Work Type: Project Team Leader: Dan Kjar Team Members: David Ramirez Quarter Ending Update: Contractor started inspections for fiscal year 2002/2003, on March 6, 2003. Work Name: Substation Site Acquisition "New Substation" (CIP) Description: Site needed for construction of new substation south of the 210 freeway. (160 West Gladstone St.) Project Is being carred over from fiscal year 2001-2002. Work Type: Project Team Leader: Federico Langit Team Members: Quarter Ending Update: Start demolition and preliminary site Improvement at 1160 West Gladstone. Performed early solicitation of design/engineering services. Work Name: Tree Maintenance/Circuit Trimming Description: Maintenance annual circuit trimming (power -line clearance) pro -active maintenance program to reduce or eliminate customer outages due to trees coming in contact with high voltage power lines. Work Type: Program Team Leader: David Ramirez Team Members: Dan Kjar Quarter Ending Update: Circuit trimming was completed on January 31, 2003, but a few tree removals remain to be completed in the next week or two. 6 056 Division: &W Administration Work Name: City Facilities Energy Audit/Energy Efficiency Retrofits Description: Conduct an energy audit of City Facilities using consultant. Develop recommendations on energy efficiency improvements. Implement recommendations via retrofits, or by installation of new equipment or fixtures. Work Type: Project Team Leader: Cary Kalscheuer Team Members: Quarter Ending Update: No further action necessary. All systems seem to be working properly. Work Name: Telecommunications Description: Research potential uses of optical fiber installed by Charter Communications, and potential telecommunications services that could be provided by the Utility. Services that will be considered were discussed in the Utility's Strategic Mission exercise which took place between Sept 2000 to Apr 2001. Work Type: Project Team Leader: Cary Kalscheuer Team Members: Joe Hsu Federico Langit Quarter Ending Update: Provided comments on Draft Phase 1 Report; changes were made and we received Final Phase 1 Report. Received Draft Phase 2 and 3 Report, and provided comments on this report. Scheduled workshop presentation on Final reports for April 28, 2003. 7 057 Work Name: Work Order System Review Description: Work orders are issued to have work done by field personnel. Work orders communicate what is to be done, what equipment and materials are needed to do the job, and authorize field personnel to commence work. Work orders also are used to track costs for billing and accounting purposes. This is a review of the work management process, which is largely a manual process, to see how it can be made more efficient, and possibly automated, for billing, accounting and management purposes. Work Type: Project Team Leader: Cary Kalscheuer Team Members: Steven Yang Joe Hsu Kevin Momingstar Ann Graf Feliza Came Hien Vuong Dan Kjar Federico Langit David Ramirez Quarter Ending Update: In February, Synergen presented a 15 page written report on their findings. The report also identified potential next steps which included formalizing project commitment, and putting together a project team Joe Hsu took the lead on these two steps and held a meeting on March 19. At the meeting staff from Finance, IT, and various Utilities Divisions agreed to work together on a four step work plan to build up this project: (1) Within 4 weeks, staff will develop a list of features -functions for a future system; (2) In May, Ann will provide staff a demonstration of what the Bi -Tech System can do; (3) Kevin Morningstar will incorporate features -functions into RFP for CIS system to see if CIS vendor can provide desired solution; (4) in September, a decision will be made to go with Bi -Tech System, CIS or issue separate RFP for work order system vendor. 8 058 Work Name: Work Plan Update Reporting System Description: Develop a work plan update reporting system that allows managers to log on and update their projects, and then allows administrative staff to printout reports for all divisions. Work Type: Project Team Leader: Cary Kalscheuer Team Members: Steven Yang Robert Person Quarter Ending Update: Developed database table structure using MS Access, and then developed input forms and sample reports. Presented system to Robert Person who provided constructive comments and guidance on further development of system It was decided to pilot system in Azusa Light & Water to get comments from managers and to see how useful it may be. System is a prototype and MS Access platform has limited capabilities. However, system can be used by managers to plan projects, i.e., list, schedule and assign tasks for projects, and print "to-do" lists. System permissions allow users at different levels in the organization access to different information. For example, a department head may view status of all projects in department at any time; City Manager could log on and see status of any project citywide if system were implemented on citywide basis. System was used to generate this third quarter work plan update report and could be modified to include a variety of information. Division: ®S Work Name: Customer Information System Working Group Description: In December 2006, the Hewlett Packard 3000 line of equipment will no longer be supported by Hewlett Packard. Since Azusa and Colton share a common intemallcustom CIS system that runs on this platform, a migration plan must be in place before the end of calendar year 2003. As part of the process, Azusa and Colton have agreed to create a joint working group with staff from both cities that are tasked with looking into CIS alternatives. A joint RFI is due by May 2003. Work Type: Project Team Leader: Kevin Morningstar Team Members: Quarter Ending Update: Lund Performance Systems was selected to be a migration consultant; Colton and Azusa are sharing the costs. The Working Group will start meeting in February. 9 059 Work Name: Phase II — CIS online system Description: The online customer access to customer data via azusalw.com and coltononline.com has been in place for over a year. The second phase entails adding additional information to that currently available as well as adding online credit card acceptance. Staff is also investigating online service requests. Work Type: Project Team Leader: Kevin Morningstar Team Members: Margaret De Lano Quarter Ending Update: Holding pending release of PowerHouse Web version 8.49. Work Name: Update Azusa/Colton CIS system to final PowerHouse version Description: Hewlett Packard has announced that it will no longer support the HP 3000 after December 2006. Given that date the cities of Azusa and Colton need to be underway with migration efforts no later than Fiscal Year 03/04. In preparation for migration the Light & Water MIS staff will be performing the last system wide update of the CIS software. Project will entail an entire system rebuild, data and code clean up to facilitate migration effort. Work Type: Project Team Leader: Kevin Morningstar Team Members: Margaret De Lano Quarter Ending Update: Project is currently pending the release of Cognos' version 8.49 of PowerHouse. Work Name: Upgrade Avaya G3r (OS, VOIP, VAL, BCMS) Description: Upgrade the City's Avaya G3r telephone switch. Upgrades include a new operating system (Multivantage), replacement of obsolete hardware, addition of LAN connectivity, VOID capability, Voice Announcement over LAN capability, and replacement of Azusa Light & Water's CMS system with Avaya BCMS. Joint project between citywide MIS staff. Work Type: Project Team Leader: Kevin Morningstar Team Members: Mike Guadagnino Lysell Wofford Ann Graf Quarter Ending Update: VOID demo system active and functioning on Azusa LAN effective Jan 13. Equipment configuration completed and item scheduled for Utility Board on January 28. 10 060 Division: ower Resourc Work Name: Contract Negotiations Description: The following contracts will need to be negotiated by the end of second quarter: (1) Scheduling Services Agreement with Salt River Project to provide the after -the -hour power resource scheduling services; and (2) An interconnection service agreement with Edison to specify the terms and conditions of the interconnection of the new substation with Edison's system. Work Type: Project Team Leader: Bob Tang Team Members: Tim Vuong Richard Torres Quarter Ending Update: (1) Staff continues to work with SRP for the Scheduling Service Agreement. Due to the uncertainties in the wholesale market, SRP is taking longer in the internal review. Staff expects to finalized the Agreement by mid- May. (2) Staff continues to work with Edison to finalize the interconnection Agreement for the new substation. Several correspondences and comments to Edison's proposal have been exchanged. Staff is taking on incremental approach to bifurcate the negotiation of contractual terms and the construction of the interconnection work. The first interim agreement (Engineering and Design Agreement) will be forwarded to utility Board for approval in April 2003. Work Name: Renewable Resource Procurement Description: As the state of California continues to consider the state's long term renewable energy strategy (perhaps establishing a renewable energy portfolio standard), the department will need to monitor and devise a strategy to face such potential challenges in the near future. Initial efforts will be taken to identify long-term sustainable funding mechanisms of potential renewable energy procurement (either due to legislative mandate or voluntary). Work Type: Team Leader: Team Members: Program Bob Tang Tim Vuong Richard Torres Quarter Ending Update: Staff participated extensively in the negotiation of California windpower project through SCPPA. Staff anticipates to have the final agreement to utility Board approval in May concurrently with the adoption of Renewable Portfolio Standard. 11 061 Work Name: Resolution of Regulatory Issues Description: The following regulatory issues involving the City are currently been subject to resolution by FERC: (1) City's Transmission Revenue Requirement (TRR); (2) The CAISO transmission access charge methodology; (3) The California electricity market redesign efforts. The Staff will actively participate in these proceedings to protect the City's interests. Work Type: Project Team Leader: Bob Tang Team Members: Tim Vuong Richard Torres Quarter Ending Update: (1) City's Transmission Revenue Requirement (TRR), settlement discussions continue o FERC, staff has participated in two settlement meetings and settlement appears to be within reach but not finalized yet, next settlement meeting is scheduled for mid-May. (2) The CAISO transmission access charge methodology, the hearing of FERC will commence in late May, staff continues to work with other muni cities to solidify our positions. (3) California electricity market redesign efforts: Staff continues to review and update the understanding of the California electricity market redesign, the time frame for the implementation has slipped by at least one year. 12 062 Work Name: Retail Rates Revision Description: As the department's cost structure continues to face upward cost pressures due to (1) cost -of -living adjustment, (2) increased internal funding of capital projects, (3) additional socialized city costs, (4) uncertain and volatile electricity wholesale market, (5) uncertain cost implications of CAISO market as well as expiring transmission contracts with SCE, the department will need to revisit and revise its retail rates to reflect the current business environment. At the same time, the department will be to be cognizant of the increased competitive pressure from the investor-owned utilities (namely SCE in Azusa's case) once they complete the restructuring of their past debts in the foreseeable future (by mid -2003 in SCE's case). - In light of the above, we need to devise a more flexible rate structure that can provide the department with the rate flexibility to face the unforeseen circumstances. Along these thoughts, the following rate structure may serve as a "strawman": a. Incorporate a portion of the current one -cent per kWh charge permanently into the rate base to reflect the increased cost structure of the department. b. Create a quarterly updated power cost adjustment (PCA) mechanism to reflect the volatile nature of department wholesale power procurement costs (perhaps with a percent cap of how much the department can revise its PCA). Work Type: Project Team Leader: Bob Tang Team Members: Tim Vuong Richard Torres Quarter Ending Update: Staff is updating the financial model of the Light Fund for the next five years. The update will take into account. (1) The known major capital projects of this time (2) external financing of the capital projects (3) projected power resource costs (4) cost -of -living adjustment (5) additional costs of renewable energy purchases (6) appropriate financial reserve level. Staff will finalize the preparation of the model and intends to make a comprehensive presentation to utility Board in May. 13 . 063 Work Name: San Juan Unit #3 Performance Mitigation Description: As demonstrated in the past year, the department's ability to provide reliable low-cost electricity is intricately tied to the performance of San Juan Unit #3. Planned and unplanned outages of the unit have and will continue to cause adverse impacts to our objectives. The following tasks will be undertaken to mitigate to the maximum extent possible the San Juan contingencies: At - Explore long term asset exchange arrangements with third parties A2 - Explore asset divestiture arrangements A3 - Explore joint reserve sharing arrangements Work Type: Project Team Leader: Bob Tang Team Members: Tim Vuong Richard Torres Quarter Ending Update: No new development. Division: IWaste Mana emen Work Name: DOC Beverage Container Recycling Program Description: Purchase compartmentalized recycling containers and promote their use by schools. Aluminum cans, plastic bottles, newspaper and mixed paper are the four commodities targeted through this program. Proceeds from recovery of these commodities will go to host school. Bins will be serviced by Athens Services. Work Type: Program Team Leader: Cary Kalscheuer Team Members: Quarter Ending Update: 6 containers shipped from manufacturer to Athens' storage yard to add 6 schools to the program School District was provided with agreements to execute in order to receive bins, however, has not executed contracts as of yet. City requested School District to provide a breakdown of where they wanted to have the smaller, office or classroom containers delivered to; however, we have not received this information. Deliveries of all items are on hold pending feedback from the District. Existing 3 schools participating in this program recovered 7.53 tons of materials during this quarter and were paid $531.96. 14 064 Work Name: Dump that Junk Month Description: Sponsor and promote spring cleaning activities during the month of April, including throwing away junk at curbside; cleaning alleys; towing away old cars; throwing away household hazardous waste; and cleaning out city facility offices. Work Type: Program Team Leader: Rick Cole Team Members: Jeff Reed - Dave Rudisel Bill Nakasone Tina Cravens Marlin Quiroz Karen Vanca Quarter Ending Update: Dump that Junk Team met a planned activities for month of April 2003. Named theme as Clean and Green Month. Activities included many of those carried out last year --City Office Clean Up, Free Residential Bulky Waste Pick Up, Household Hazardous Waste Event, Plant Give Away, Tree Planting, Alley Clean Ups, Free. Junk Car Towing, Free Yard Sale. Publicity expanded this year to include Recycling Booklet, Newspaper, Banner, School Flyers, Direct Mailer. Work Name: Green Waste Barrel Distribution Program Description: Purchase 32 gallon green barrels and distribute them to single family residents to increase curbside disposal capacity for clean separation and collection of green waste. Work Type: Project Team Leader: Cary Kalscheuer Team Members: Quarter Ending Update: A few calls of missed deliveries were received, and addresses were forwarded to vendor for correction Some of these residents originally said they did not want a barrel, but have changed their minds. Others report barrels as being stolen. Others are new residents to the City. Ifs apparent that we will get a few calls every week, and arrangements have been made to have meter readers deliver one or two barrels here and there upon request. Move ins to Mountain Cove seem to be more of the higher areas of request. Red tagging barrels for non pick up began this quarter, if the barrels contained trash. We have received a few calls on this, however, most understand and adjust. 15 065 Work Name: MRF Program Description: Process all solid waste collected in Azusa through Athens Services Material Recovery Facility or MRF to divert 13,000 tons annually. Work Type: Program Team Leader: Cary Kalscheuer Team Members: Quarter Ending Update: City officially reported to the State that it diverted 53% of its waste from landfills in 2001. Some research was done using the California Integrated Waste Management Board's website, comparing City of Azusa diversion rate to other cities in county and state. Information was put into recycling booklet that is mailed annually. Work Name: Used Oil Recycling Block Grant Program Description: Supply used oil recycling drain pans to State Certified Used Oil Collection Centers in Azusa. Promote use of these centers by residents through advertising. Work Type: Program Team Leader: Cary Kalscheuer Team Members: Quarter Ending Update: 3,097 gallons of used oil dropped off at 6 centers; 69 used oil drain pans distributed by centers; 6 ads ran over 3 month period in Azusa Herald. Division: ater Operation Work Name: 12 -inch crossing Dalton Wash Description: 12 -inch waterline crossing Big Dalton Wash. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Out to bid in 4th quarter. 16 066 Work Name: 12 -inch pipeline in 6th St: Virginia to Cerritos Ave. Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Project will be bid in 4th quarter. Concentration put on other projects. Work Name: 16 -inch pipeline in Baseline from Rockvale to Citrus Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Project delayed until the end of the City of Azusa Public Works paving cut moratorium on Baseline Avenue. Work Name: 1MG Mountain Cove Reservoir Description: Installation of a reservoir at the Mountain Cove development. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Construction of reservoir and appurtenances completed and reservoir placed in operation. Work Name: 20 -inch and 16 -inch pipeline for Mountain Cove Description: Installation of pipeline required to service the Mountain Cove Project from the Heck Reservoir Booster Pump Station to the new Reservoir at Mountain Cove. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Pipelines in operation. 17 067 Work Name: Description: Work Type: Team Leader: Team Members: 20 -inch pipe installation- Lakeview Terrace to 10th St and Rockvale Boosters Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Proj ect Chet Anderson Quarter Ending Update: No information available this quarter. Work Name: 30 -inch pipeline in Dalton from Sierra Madre to 5th Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Work Type: Update. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Specs completed and permits from the railroad are being prepared. Work Name: Distribution Main Upgrades Description: Replacement of water mains in the distribution system Rollover from 2002. Work Type: Team Leader: Team Members: Project Chet Anderson Quarter Ending Update: Project substantially complete, and system in operation. Final contract price will be decided in litigation with contractor. Work Name: Install radio controls for SCADA Description: Installation of radio controls for the water system SCADA control system. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Contract with the SCADA supplier received. Delivery of the SCADA equipment will be made and installation of equipment begum Work Name: Ph 1 Heck Booster Pump Station Description: Installation of a booster pump station to boost water to the reservoir at the Mountain Cove development. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Booster station on line. Discussion with developer about appropriate reimbursement continues. Work Name: Pipeline from Citrus & Foothill to Barranca & Alosta Description: Installation of 12 -inch pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Plans and specs will put out to bid in fourth quarter. Work Name: Purchase replacement vehicles Description: Replace vehicles that have reached an advanced age and advanced state of wear. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Vehicle deliveries made and accepted. Work Name: Rehabilitation of South Reservoir Description: South Reservoir will be analyzed by a structural engineer to determine if the reservoir is worth renovating or if it should be tom down and replaced. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Another Request for Proposals to locate a consultant who will do this work will be necessary in the fourth quarter. 19 069 Work Name: Repairs to Sierra Madre Reservoir Description: Sierra Madre Reservoir is in need of repairs to the inside and outside of the reservoir. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: The inspection and repair of the Reservoir on hold Work Name: Rockvale booster upgrade Description: Installation of new pump and piping to enhance the performance of the Rockvale boosters. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: On hold. Work Name: Spreading ground wells Description: Installation of two wells in partnership with the County to enhance the County's ability to sluice the accumulated debris from Morris and San Gabriel Dams. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Project still delayed by City of Pasadena. Hope to have pipeline complete by end of June, 2003. Work Name: Treatment plant sed basin and sludge lagoon design and construction Description: Treatment plant sed basin and sludge lagoon design and construction to enhance the performance of the water treatment plant. Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Project proposals will be requested from consultants. Project has been rolled over to FY 2004. 20 070 Work Name: Well 2 & 3 discharge upgrade Description: Installation of piping to enhance the flow out of wells 2 & 3 Work Type: Project Team Leader: Chet Anderson Team Members: Quarter Ending Update: Construction of Northern Transmission Main has begun. 21 071. AZUSA AZUSA Azusa Utility Board Meeting April 28, 2003 Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update 072 Status of Projects • Short-term Resource Plan Preparation and Execution — Continued the execution of resource plan for both the on -peak and off -hours. — So far we have been able to avoid transmission congestion and curtailment problems with our plan. • FERC Settlement of City's Transmission Revenue Requirement (TAR) — Continued to engage in settlement discussions with the Investor Owned Utilities, municipal cities and FERC staff. — Participated in settlement meeting on April 14. Next scheduled meeting on May 21. Perhaps a "make -it" or "break -it" meeting. The amount to be settled is less than $200,000/year San Juan Unit #3 Update — The unit continues to have performanceproblems in the past seven months, performing subpar compared to historical performance levels. — Staff is working with other unit owners in an attempt to establish an accountability system to be implemented by Public Service Company of New Mexico (PNM), the unit operator. — Staff isarticipating in the negotiation of transmission contract amendment with Tucson Electric Power TEP) for San Juan Unit #3 • New Distribution Substation — Contract negotiations continue with Edison. — Interim Agreement with Edison for the engineering and design work is being finalized — Financing for the project is under way • Renewable Energy — Due to the last-minute change in contract participation by the City of Vernon, the contract execution for the PacifiCorp wind -power project in Solano County, California has been delayed by one month. Current anticipated contract execution date has been revised to the month of May. — Terms and conditions of contract are expected to remain unchanged: 15 -year contract at a cost of $53.5/MWh. City's share will be 3 MW. 073 07 a. CITY OF AZUSA, ENERGY CONSUMPTION COMPARISON PERCENT _.. y"'•x MONTH FY01-02 _ FY 02-03 CHANGE JUL 21,524 23,581 966% AUG 22908 __22502. 177%' SEP 21,242 23047 ._8.50%: OCT 20,485 20290_ -0.95%_ NOV 18.353 ...._.._122% DEC ...... 18430 .... ..............18577: 18784 � _.__ 1,92%j JAN 18882q 19535- ,___„_3.46%', FEB. 17202 ...._.........17.286__ 0.$3%'. MAR �....... ....... 18535. ..... ............18,280:.__.. ......_4A2 APR MAY -_ _. ---......._... ........... ................ .. ___._ ...._.... _ . . J UN TOTAL 177,561 - 182,891 _ 3.00%' ENERGY CONSUMPTgNNMN4i CITY OF AZUSA PEAK DEMAND COMPARISON PERCENT _- - ---MONTH '-- FY 01-02 -- ...._..... ..___._ FY 62-03 _...... ........... CHANGE JUL 46.6 52.0 11.59%5. ... ._.;_.._. AUG .. 469-_. _... . _..... ..... .._..._. 484.......... SEP474 541j OCT 504 .... . 440 ..:.........._ 12 _ ..__-.65%'i NOV 36.2. 38.9 7.33% DEC 340 344 7;02%j JAN- __,_. 347 _ _,_ 365 - 716% FEB 362 335 7.46%: 357 _ 402 APR MAY:___ .. .....___.. _.....__ .....__......... 07 a. 075 Power Resource Cost Accounting FY '02-'03 076 4 Ty 1AZI SA rm AZUSA Azusa Utility Board Meeting April 28, 2003 Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update 072 Status of Projects Short-term Resource Plan Preparation and Execution — Continued the execution of resource plan for both the on -peak and off -hours. — So far we have been able to avoid transmission congestion and curtailment problems with our plan. • FERC Settlement of City's Transmission Revenue Requirement (TRR) — Continued to engage in settlement discussions with the Investor Owned Utilities, municipal cities and FERC staff. — Participated in settlement meeting on April 14. Next scheduled meeting on May 21. Perhaps a "make -it" or "break -it" meeting. The amount to be settled is less than $200,000/year San Juan Unit #3 Update — The unit continues to haveerformance Problems in the past seven months, performing subpar compared to historical performance levels. — Staff is working with other unit owners in an attempt to establish an accountability system to be implemented by Public Service Company of New Mexico (PNM), the unit operator. — Staff is participating in the negotiation of transmission contract amendment with Tucson Electric Power (TEP) for San Juan Unit #3 • Mew Distribution Substation — Contract negotiations continue with Edison. — Interim Agreement with Edison for the engineering and design work is being finalized — Financing for the project is underway • Renewable Energy — Due to the last-minute change in contract participation by the City of Vernon, the contract execution for the PacifiCorp wind -power project in Solano County, California has been delayed by one month. Current anticipated contract execution date has been revised to the month of May. — Terms and conditions of contract are expected to remain unchanged: 15 -year contract at a cost of $53.5/MWh. City's share will be 3 MW. 073 d .... ..... ..... ... ........ ......... .. __ ___. _.. .. ... __ ........... ...............- CITY OF AZUSA ENERGY CONSUMPTION COMPARISON ..... .... .... . ............ . -_.... __..0.. PERCENT MONTH _ ____ ............... ........._ FY 01-02 FY 02-03 -__.__-.._ CHANGE _. ... _.... JUL ... - 21 524 23 581 - 9.56% t _ AUG ........ ._- _,.,.,, .,.._ 22808 22502 _ .._.._.. __.._ _ -i. 1.77% ,., SEP _...,,.,, 21,242 23,047 ... _. . 8.50% OCT ��� 20,485 20.290: 20,280 ,_ _ ........ -0.95% NOV .. _ 18 353 16,577 __.. ........ __... 122% DEC.,,. --_._ _ - 18,430 18,784,._„- _..____. . 1.92% 402 18082 19535 3.46% FEB ... ...........__. 17,202 .__._ .17,294, 0.53% MA..0....; R .. ..__.. .. 18535:................ ...19.280 .._._.. --- 4.02% APRAY JUN _ M ._.____ _. JUN .................. H CRY OF AZUSA PEAK DEMAND COMPARISON PEACE ............ . .........-. M AUG----._-`---- AUG __.___.. ..._.__.... 46.8 ......_....... 484: SEP ....._____ -. .........._... OCT _ __.______ --____-_-- 50.4. ___._. ___......... _.............. 44.0I ... Nim 362, -__ 369' .__DEC ..... 340. 344 . FEB _. 341 _. 362 _ _. 365 .._ ..... 335 `� ,. MAR _._ 357 402 APR --... .... ... y JUN :PEAK DEMAND N MW 074. 03 -__-- $39.13. 03 $54.02.- .------- 03 --_ .-....-.-. $53.33.- IN $lMWH , 1V $24.53. .__-$.29.17.. $27.94 $42.41 . 075 AVERAGE _ MONTH ON PEAK PRICE FEB 02--'-.-_ ..---- MAR 02 -------_ -. $3 --....-.._APR02 -.......- -$2 ......_.MAY02._-.-.. _.__...-JUN02 _._._-_ -.$3 -_--JUL02`-......-. .---_ $3 -.__ -_.....-AUG 0 2 $3 03 -__-- $39.13. 03 $54.02.- .------- 03 --_ .-....-.-. $53.33.- IN $lMWH , 1V $24.53. .__-$.29.17.. $27.94 $42.41 . 075 Power Resource Cost Accounting FY '02-'03