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Home My WebLink AboutAgenda Packet - March 22, 2004- UBAGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA LIGHT & WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON VICE CHAIRPERSON CRISTINA C. MADRID BOARD MEMBER MONDAY, March 22, 2004 6:30 PM DAVE HARDISON BOARD MEMBER JOSEPH R. ROCHA BOARD MEMBER 6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call 1. PUBLIC PARTICIPATION (Person/Group shall be allowed to speak without interruption up to five M minutes maximum time, subject to compliance with appiic able meeting rules. Questions to the speaker or responses to the speaker's questions or comments, shall be handled after the speaker has completed his/her comments. Public Participation will be limited to sixty (60) minutes tlme.) The Consent Calendar adopting the printed recommended action will be enacted with one vote. if Staff or Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under SPECIAL CALL ITEMS. 001 KI CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, FEBRUARY 23, 2004 - 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: BOARD MEMBERS: HARDISON; STANFORD, CHAGNON, MADRID ABSENT: BOARD MEMBERS: ROCHA ALSO PRESENT: Also Present City Attorney Ferre, Director of Utilities Hsu, Assistant Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Deputy City Manager Gutierrez, Administrative Technician Yang, Senior Electric Engineer Langit, Assistant Director of Electric Operations Ramirez, City Clerk Mendoza. Public Participation Pub Part Mr. Art Morales addressed the Board Members requesting that the Utility Board meeting dates be A. Morales posted on the Marquee on the corner of Foothill Boulevard and Alameda Avenue, in front of City Comments Hall. He then expressed his frustration regarding an article in the San Gabriel Valley Tribune on February 19, 2004, regarding statements made about the Latino community in Azusa. The CONSENT CALENDAR consisting of Items 11- A through 11-J, were approved by motion of Consent Cal Board Member Stanford, seconded by Chairperson Chagnon and unanimously carried with the Approved exception of items II -C, I, and J, which were considered under the Special Call portion of the Agenda. A. The Minutes of the regular meeting of January 26, 2004, were approved as written. Min Appvd 005 B. Approval was given to purchase two crew supervisors' vehicles by using .City of Azusa Purchase two Purchase Order No. 006106 dated April 9, 2003 from Public Works Department to satisfy Vehicles competitive purchasing requirements. Spec Call C. SPECIAL CALL ITEM. Item D. Approval was given for an additional $25,000 to the contract amount of Ryerson, Master, Inc contract and Associates, Inc. (RMA) for additional services on the Vulnerability Assessment. w/RMA E. Approval was given for an additional $50,000 to the blanket purchase order of General Pump Inc P.O. Company. Gen Pump F. Notice of Completion for Project W-179, Foothill and Barranca, 12 inch- Waterline, was Notice Of approved and authorization was given to the.City Clerk to have same recorded at the Office Completion of the Los Angeles County Recorder. W-179 G. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING Res. 04-C19 CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF. (Laborer's Grant of Training and Retraining Trust for Southern California, A Trust). Easement H. Approval was given for a loan to the Redevelopment Agency in the amount of $150,000 for Loan to redevelopment of the Talley Building Property, located at 619 and 621 N. Azusa Avenue. CRA I. SPECIAL CALL ITEM. Spec Call SPECIAL CALL ITEM. Spec Call Special Call Items Special Call Items Board Member Stanford expressed concern regarding the color of the recycling containers to be Stanford purchased from Pro-Tainer, Inc. for the MARS -1 (Module Azusa Recycling Station -1) recycling Comments program at local schools. He requested that staff provide information on the advantages of the MARS- I recycling containers and how they are being paid for. Assistant Utilities Director Kalscheuer responded to the issue stating that the bins are being Assist Util purchased by a grant from the State of California Department of Conservation and they are to be Dir used for recycling beverage containers, i.e. plastic bottles, cans, newspaper and mixed paper. He Kalscheuer stated that the advantages are that teachers are able to interact with students about recycling and response the value of conservation to the society. He stated that there have been no complaints regarding the aesthetics of the bins. Lengthy discussion was held regarding the bins, i.e. where and how they will be used and the Discussion color. It was consensus to approve the item with the provision to have the capability to change to color to a possible tan, or gray with matching lids and to bring back for reconsideration if staff is unable to find an appropriate color. Board Member Madrid expressed her objection as she would like another color, such as violet. Board Member Stanford addressed item regarding the Nondisclosure Agreement between Azusa Stanford Light & Water and Aiirmesh Wireless, LLC., asking if this is just for the City or Citywide. Comments Ahrmesh Wireless 02/23/04 PAGE TWO ii. Utilities Director Hsu responded stating that it is a citywide proposal and provided background on Utility Dir the item. He stated that City of Cerritos has entered into an agreement with Aiirmesh Wireless, Response LLC., and in order to talk to the company the City of Azusa would have to enter into a nondisclosure confidential agreement with the company. Board Member Stanford addressed item regarding the proposed Legislative Letter regarding Stanford Assembly Bill 939, requesting additional background information regarding the item. AB 939 Assistant Utilities Director Kalscheuer responded stating that the letter is in response to a request Assist Util by Los Angeles County Solid Waste Management Committee/Integrated Waste Management Task Dir Force by which they express concern to the Governor about AB 939 and the administration Response portion of the mandate. It was put on the City's agenda for consideration due to the concern on the administrative effort put into compliance with AB939. He noted the lengthy process to make certain calculations with regard to the annual report, stating that they are not against recycling program. Agmt w/ Moved by Board Member Stanford, seconded by Board Member Hardison and unanimously Aiirmess carried to approve the nondisclosure agreement with Aiirmesh Wireless regarding wireless internet Approved services. Ltr to Gov Moved by Board Member Stanford, seconded by Board Member Hardison and unanimously Approved carried to support the letter by the Los Angeles County Integrated Waste Management Task Force Re: AB939 regarding AB 939 compliance and authorize the Mayor to send similar letter to Governor Schwarzenegger. Assist Dir Assistant Director of Electric Operations Ramirez responded to questions regarding the purchase Elect Oper of two crew supervisors' vehicles stating that the CNG option are not available on the size of truck Response they were purchasing. Sched Items Scheduled Items Allocation Director of Utilities Hsu addressed item regarding "Allocation to Utility of City Support Service To Utility of Costs", explaining that the Board had directed Staff to look into a proposal on allocation method City Support that would be clear, transparent, easy to administer, which is noted in the staff report. He stated Service Costs that there is a two step process, 1) would be based upon the general fund costs budgeted by Support Services Departments, and 2) a formula was created by looking at what percentages share of FTEs the Utility has compared to the rest of the City, and then applies that percentage to the dollar amount. Discussion was held. Chairperson Chagnon noted that the Transfer Policy should be placed on the next Agenda for consideration. Allocation Moved by Board Member Hardison, seconded by Board Member Stanford and unanimously* Concept carried to (1) approve the allocation concept proposed in the report, to allocate City Support approved Services costs to the Utility; and (2) direct staff to formalize the allocation methodology as a part of the overall policy governing the transfers from the Utilities to the City General Fund. Staff Rpts Staff Reports/Communications Monthly Pwr Assistant Director of Resource Management Tang addressed the Board Members presenting the Resources Monthly Power Resources Update, noting that they are finalizing the Kirkwall Connection Update Agreement with Southern California Edison. , 007 02/23/04 PAGE THREE Dir of Utilities Utilities Director Hsu announced that there will be a Tour organized by SCPPA, regarding Long ancmt Term Power Resources, to San Juan in New Mexico on April 13, 2004, they would be leaving Ontario Airport to Farmington and would drive to plant site on April 14' for the tour. He noted that Board Member Rocha had requested this information as it became available. B. Tang Assistant Director of Resource Management Tang introduced the presentation of Long Term Long Term Power Resource Procurement, stating that the issue is to plan for power resources commencing Power Res 2008. He stated that there is a need to meet the City's electric consumption and to plan for the Procurement future. He answered the following questions: Why Now? How Much to Procure? - Two Types of Power Resources: A. Summer Peaking Power and B. Planning Reserve. What Are Our Options? - Generally there are three options: A. Build own power plants, Participate in joint power projects, and Contract with third parties, he noted the pros and cons of each option.. He then listed the indicative prices for Long Term Summer Peaking Resource. He talked about the preliminary findings and preliminary conclusion. He talked about where we go from here, stating that staff would like to engage independent consultant to validate the economic assessment and provide additional market perspective (due diligence review) and provide a final recommendation to the Utility Board in April and enter into a long term contractual arrangement in May. He answered questions posed by the Board Members. Dir of Utilities Director of Utilities Hsu provided an information item reminded the Utility Board that the Comments municipal code stated that the board shall elect one of its members as chairperson and one as Appointment vice -chairperson, who shall hold office for one year and until their successors are appointed. Of officers Initially officers shall be selected no later than the second meeting of the board following its appointment, subsequent selection of officers shall occur no later than the second meeting following the selection of the mayor pro -tem of the City Council. He stated that since the selection of the mayor pro -tem will be in March, staff will place an item o the March Utility Board agenda. Sr Elect Engr Senior Electric Engineer Langit provided a status report of the Kirkwall Substation Project Rpt on displaying a before and after photo of the property at 1 160 W. Gladstone Street and stated that Kirkwall Stn they are still waiting for Edison to complete their portion of the switchyard; within the next forty days they will energize the station and they are in the process of finalizing a switching program with Edison to energize the station. A dedication is planned for new facility sometime in late April 2004. Dir of Util Director of Utilities Hsu responded to question regarding a separate gate inside the complex and Comments he explained that with regard to Edison's low voltage clinicians, they cannot get into the high voltage area, so, they would be separated by a wrought iron gate and a screen would also be installed for aesthetic purposes. He also explained the technology that was used is a little different, low profile, much cleaner, user friendly and environmental friendly. FY 2003-04 FY 2003-04 2"' Quarter Work Plan Updates - Chairperson Chagnon complimented Director of 2"' quarter Utilities Hsu for and excellent work plan update, especially the format of the document. Update Dir Com Director's Comments None None It was consensus of Councilmembers to recess to Closed Session to discuss the following: CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 City Designated Representative: Joe Hsu Employee Organization: IBEW . Closed Sess M 02/23/04 PAGE FOUR Recess The Utility Board Members recessed to Closed Session at 7:30 p.m. and reconvened at 7:55 p.m. Reconvened There was no reportable action taken in Closed Session. No Rpts . Adjourn It was consensus of Councilmembers to adjourn. TIME OF ADJOURNMENT: 7:56 P.M. SECRETARY NEXT RESOLUTION NO. 04-C20. 02/23/04 PAGE FIVE iia CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES< DATE: MARCH 22, 2004 SUBJECT: ANNUAL LOW FLUSH TOILET REPLACEMENT PROGRAM RECOMMENDATION It is recommended that the Utility Board/City Council authorize staff to prepare letters to thank the San Gabriel Valley Municipal Water District (SGVMWD) and Upper San Gabriel Valley Municipal Water District (USGVMWD) for their contributions to the Low Flow Toilet Replacement Program, and authorize Utility Board Chairperson to sign the letters. BACKGROUND In the past, only Azusa Light & Water customers located within the City of Azusa and the San Gabriel Valley Municipal Water District jurisdictional boundaries were eligible for the annual Low Flow Toilet Replacement Program. This was confusing for Azusa Light & Water customers located outside of the City and within the USGVMWD territory, who were not eligible to participate in the program. In order to remedy this situation, Azusa Light & Water contacted representatives from the USGVMWD and requested its participation to allow all Azusa Light & Water's customers within their District to be eligible. USGVMWD not only agreed to allow Azusa Light & Water customers to be eligible, the District has agreed to provide up to 400 additional low flow toilets at no additional cost to Azusa Light & Water. Further, USGVMWD has contracted with the same consultant to institute the program under the existing guidelines. FISCAL IMPACT There is no fiscal impact as a result of this action. Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator 010 AZUSA CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITI� DATE: MARCH 22, 2004 SUBJECT: REVISED CONDITON OF PURCHASE -- 617 NORTH AZUSAAVENUE RECOMMENDATION It is recommended that the Utility Board/City Council approve the revised and renegotiated condition of sale of the subject property from Azusa Light & Water to the Azusa Redevelopment Agency (the "Agency'). BACKGROUND On December 22, 2003, the Utility Board/City Council approved the sale of the subject property to Azusa Redevelopment Agency for the development of a pedestrian breezeway. The sale of the property was approved for $37,500 along with financing for the full amount of the sales price. Since the official approval of the transaction an additional condition of purchase has arisen and the Sales Agreement was renegotiated. This condition calls for the property to be conveyed to the Agency as a vacant land, free of structural materials and debris, and with all utilities capped and deactivated. Since there are various parties with conflicting requirements involved in the development of the breezeway, acquiring the property in this manner will allow the agency to more efficiently and economically construct the propose breezeway. The cost to bring the property to this condition will be borne by the Agency and added to the mortgage loan for the purchase of the property. The cost of demolition and clearance is currently estimated to be $54,000, and will be performed by S Y Development Corporation, pursuant to the existing Disposition and Development Agreement (DDA) approved for the Talley Building project, excerpt of the pertinent section of the DDA is attached for your Oil Page 2: March 22, 2004 Utility Board — Revised Condition of Purchase reference. This amount will be paid in one lump sum upon transfer of the property and the remainder of the note ($37,500) will be paid pursuant to the Purchase Agreement approved in December, 2003. FISCAL IMPACT No fiscal impact to Azusa Light and Water. Prepared by: J. Hsu Attachment Breezeway Parcel Construcrbn.pdf 012 - 03/15/04 BION 12:30 FAX 626 334 5464 AZUSA REDEV. AGENCY Zoo2 other time frame mutually agreed upon by the parties in writing) for such reimbursable costs. The Agency shall review all such invoices and shall, within. thirty (30) days of submittal to the Agency, reimburse Developer for such costs as the Agency, in its sole an absolute discretion, determines are reasonable. Notwithstanding any provision herein to the contrary, the Agency shall not be obligated to reimburse Developer for any cost or expense except upon proof acceptable to the Agency, in its sole and absolute discretion, that all mechanics or workmans' liens or similar obligations have been satisfied by Developer. The total amount of the reimbursement distributed by the Agency pursuant to this Section 3.4.4.2 shall not exceed Four Hundred Fifty Thousand Dollars ($450,000). 3.4.4.3 Breezeway Parcel Construction/Installation Cost Reimbursement. The Agency shall reimburse, separately from the amount to be reimbursed for the development of the Talleyparcel, Developer for any and all reasonable hard costs that are actually incurred or paid by Developer in the demolition of existing improvements, proposed construction and installation of the improvements and landscaping, lighting and hardscaping at the Breezeway Parcel consistent with the plans and specifications provided by the Agency. All contracts or other agreements of any type entered into by Developer that Developer seeks reimbursement for shall have been approved by the Agency in order to qualify for reimbursement. Ju the event Developer seeks reimbursement for costs incurred, but not yet paid, the Agency may in its sole and absolute discretion provide reimbursement through means of a third-party(ies) check. Notwithstanding any Agency Y:\Agency\Talley Building\TalleyDDA_100803_PINAL.doe -28- 013 03/15/04 MON 12:50 FAX 626 334 5464 AZUSA REDEV. AGENCY 0003 f 1 review or approval of Developer's contracts or other agreements, the Agency shall, not incur any liability or obligation of any kind with respect to such, contracts or agreements. Developer shall submit written invoices to the Agency on the first working day of each month (or upon such other time frame mutually agreed upon by the parties in writing) for such reimbursable costs. The Agency shall review all such invoices and shall, within thirty (30) days of submittal to the Agency, reimburse Developer for such costs as the Agency, in its sole an absolute discretion, determines are reasonable. 3.4.4.4 Limitation on Agency's Financial Assistance. Notwithstanding any provision herein to the contrary, the Agency shall not be obligated to provide Developer financial assistance other than the reduction in the purchase price for the transfer of the Talley Parccl and the reimbursements set forth in this Section 3.4.4. 3.4.5 Construction and Development Schedule of Performance. The Developer shall begin tmd complete all construction and development within the times specified in the Schedule of performance or such reasonable extension of said dates as may be granted by the Agency. In addition to extensions of time provided by express provisions of this Agreement, the Schedule of performance; may be revised from time to time as mutually agreed upon in writing between the Developer and the Agency. From time to time during the period of construction and as reasonably requested by the Agency, the Developer shall report to the Agency on the progress of construction. The reports shall be in such form and detail as may reasonably be required by the Agency and shall include construction photographs taken since the last report. Y,WencyVtalley B'adding\TdlcyDDA-100803—FTNAL.doe -29- 014 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE� DATE: MARCH 22, 2004 SUBJECT: CONSENT TO ASSIGN WATER SUPPLY AGREEMENT BETWEEN THE CITY AND MILLER BREWING COMPANY TO MILLER BREWERIES WEST LIMITED PARTNERSHIP RECOMMENDATION It is recommended that the Utility Board/City Council approve assignment of the subject Agreement dated February 26, 2002 from Miller Brewing Company to Miller Breweries West Limit Partnership, and authorize the City Manager to execute the consent of assignment. BACKGROUND As explained in attached letter, the Miller Brewing Company is going through a corporate realignment process. The Irwindale facility will be operated under a new wholly-owned subsidiary of Miller Brewing Company called Miller Breweries West Limited Partnership. The requested assignment effectively transfers ownership of the Agreement from Miller Brewing Company to its new subsidiary with all the terms and conditions of the Agreement to remain the same. FISCAL IMPACT No fiscal impact. Prepared by: J. Hsu Attachment C Miller Brewing Co Asslgnrrent.pdf 015 Q[H�j GWs.L%�l LLP BY CERTIFIED MAIL RETURN RECEIPT REQUESTED City Clerk of the City of Azusa 213 E. Foothill Blvd. Azusa, California 91702 411 East Wuconsin Av e Mb auks, Wisconsin 53202-0497 Tel 414.277.5000 Fu 410271.3552 w quarles.com March 3, 2004 RECEIVED MAR 1 1 2004 AZUSA LIGHT & WATER Attorneys at Lao in: Phoenix and 74aon, Ancona Naples and Boca Raton, Fbnda Chicago, Arm (Quarks &Brady ao Mdaaakee and Madison, Wisconsin RE: Realignment of Miller Brewing Company Proposed Intra -Miller Assignment of the Water Supply Agreement between the City of Azusa and Miller Brewing Company dated February 26, 2002, (the "Agreement"). Dear City Clerk: I 5 : 9 5'0 b'04 0 ;1J7_'10-a.L3-nz We serve as outside counsel to Miller Brewing Company ("MBC"). MBC has asked us to contact you on its behalf. Miller Brewing Company ("MBC") is undertaking an internal realignment to better coordinate its legal corporate structure with its operations. As part of that realignment, certain of MBC's assets, liabilities and operations are being transferred to a wholly-owned subsidiary. MBC's hope and expectation is that the realignment will be transparent to you in that you will continue to deal with the same people you had beforehand. In connection with the realignment, MBC seeks your consent, to the extent necessary under the Agreement to assign the Agreement to Miller Breweries West Limited Partnership, a new MBC subsidiary, subject to the terms and conditions of the Agreement. This consent includes any intermediate transfers to other MBC subsidiaries which may be necessary to effect the realignment or further transfers to other MBC direct or indirect subsidiaries. The effective date of the realignment is currently anticipated to be April 1, 2004. Please indicate your consent to and agreement with the terms of this letter by executing each of the three (3) copies enclosed and by returning two (2) originally -executed copies of this letter within ten (10) days to me in the enclosed return envelope. QBMKE\5541049.1 016 City Clerk of the City of Azusa March 3, 2004 Page 2 If you have any questions, please contact me at (414) 277-5355. Thank you for your consideration. Sincerely, Qu ES & Y LLP Bernard J. Kearney III The undersigned hereby consents to the assignment of the Agreement by Miller Brewing Company to Miller Breweries West Limited Partnership, as described above, in accordance with the terms and conditions of that Agreement and hereby agrees to continue to be bound by all of the covenants, terms, and obligations under the Agreement. EXECUTED as a sealed instrument this 22th day of March 2004. THE CITY OF AZUSA 0 Name: Rick Cole (Please type or print) Title: City Manager cc: Director of Utilities P.O. Box 9500 ` Azusa, California 91702-9500 QBMKE\5541 048.1 017 FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MARCH 22, 2004 SUBJECT: NOTICE OF COMPLETION - CAPITAL IMPROVEMENT PROJECT W-184, GLADSTONE AVENUE WATERLINE RELINING PROJECT RECOMMENDATION It is recommended that the Azusa Utility Board/City Council accept Project W-184, and direct the City Clerk's Office to execute the Notice of Completion and also have the same recorded at Office of the Los Angeles County Recorder. BACKGROUND The Water Division, in a joint project with Miller Brewing, designed a relining of an existing 16 -inch waterline in Gladstone Street from Well No. 10 at the Gladstone Water Yard to Wilson Reservoir on Barranca Avenue. Doty Brothers Construction's Bid for the construction of the project was accepted by Board action April 28, 2003. FISCAL IMPACT There is no fiscal impact of approving Notice of Completion beyond what has been previously approved. Prepared by: Chet F. Anderson, P.E., Assistant Director, Water Operations fel NOC Proj. W-184. pdf ME RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: NAME STREET ADDRESS CITY. STATE & ZIPCODE SPACE ABOVE THIS LINE FOR RECORDER'S USE ��✓aresn�h��a��iiiauu\��iiaiau��u��uaiaa��o��•�iaioii��uiia��iaiiiii._a��uaioii��m��iii NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for Complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2.. The full name of the owner is CITY OF AZUSA - 3. The full address of the owner is 213 E. FOOTHILL BLVD. , AZUSA, CA 91702 4. The nature of the interest or estate of the owner is: In fee. (IF OTHER THAN FEE, STPoKE 'IN FEE' AND INSERT, FOR EXAMPLE, 'PURCHASER UNDER CONTRACT OF PURCHASE,' OR 'LESSEE-) 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAMES ADDRESSES 6. The full names and full addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to: NAMES ADDRESSES 7. A work of improvement on the property hereinafter described was completed on MARCH 22, 2004 The work done was: CAPITAL IMPROVEMENT PROJECT W-184 WATERLINE RELINING 8. The name of the contractor, if any, for such work of improvement was DOTY BROTHERS CONSTRUCTION IIF NO CONTRACTOR FOR WORK OF IMPROVEMENT A3 A WHOLE, INSERT'NONE' (DATE OF CONTRACTI 9. The property on which said work of improvement was completed is in the City of AZUSA Countyof LOS ANGELES ,Stateof CA ,and isdescribed asfollows: GLADSTONE AVENUE 10. The street address of said property is NONE IIF NO STREET ADDRESS HAS BEEN OFFICIALLY ASSIGNED, INSERT 'NONE . Dated: MARCH 22, 2004 I IGNATURE OF OWNER OR CORPORATE OFFICER OF OWNER NAMED IN PARAGRAPH 2 OR HIS AGE" VERIFICATION I, the undersigned, say: I am the the declarant of the foregoing notice of completion; I' RESIDENT OF", "MANAGER OF", 'PARTNER OF','OWNER OF, ' ETC.) I have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on at (STATE) (PERSONAL SIGNATURE OF THE INDIVIDUAL WHOM SWEARING THAT THE CONTENTS OF THE NOTICE OF COMRFTION ARE TRUE.) WOLCOTTS FORM 1114 RP . 694 10ce Gass 3AI NOTICE OF COMPLETION *1994 WOLCDTTs FORMS, INC. (See reverse side for additional Information) III67775 39114IIIIIIIIII IIII I�IIII IIII III 5 019 � - �oe�et�es�a��•�iai�a.�a��usgim��o��ii�aseii��oueeia��eaiiiii._a��uiiiaoe�s�o��owiia� G_ 1�lPUir:1XKU:1► REQUIREMENTS AS TO NOTICE OF COMPLETION Notice of completion must be filed for record WITHIN 10 DAYS after the completion of the work of improvement (to be computed exclusive of the day of completion) as provided in Civil Code Section 3093. The "owner" who must file for record a notice of completion of a building or other work of improvement means the owner (or his successor in -interest at the date the notice is filed) on whose behalf the work was done, though his ownership is less than the fee title. For example, if A is the owner in fee, and B, lessee under a lease, causes a building to be constructed, then B, or whoever has succeeded to his interest at the date the notice is filed, must file the notice. If the ownership is in two or more persons as joint tenants or tenants in common, the notice may be signed by any one of the co-owners (in fact, the foregoing form is designed for giving of the notice by only one cotenant), but the names and addresses of the other co-owners must be stated in paragraph 5 of the form. Note that any Notice of Completion signed by a successor in interest shall recite the names and addresses of his transferor or transferors. In paragraphs 3, 5 and 6, the full address called for should include street number, city, county and state. As to paragraphs 7 and 8, this form should be used only where the notice of completion covers the work of improvement as a whole. If the notice is to be given only of completion of a particular contract, where the work of improvement is made pursuant to two or more original contracts, then this form must be modified as follows: (1) Strike the words "A work of improvement" from paragraph 7 and insert a general statement of the kind of work done or materials furnished pursuant to such contract (e.g., "The foundation for the improvements"); (2) Insert the name of the contractor under the particular contract in paragraph B. In paragraph 8 of the notice, insert the name of the contractor for the work of improvement as a whole. No contractor's name need be given if there is no general contractor, e.g. on so-called "owner -builder jobs." In paragraph 9, insert the full, legal description, not merely a street address or tax description. Refer to deed or policy of title insurance. If the space provided for description is not sufficient, a rider may be attached. In paragraph 10, show the street address, if any, assigned to the property by any competent public or governmental authority. Before you use this form, fill in all blanks, and make whateverchanges are appropriate and necessary to your particular transaction. Consult a lawyer if you doubt the form's fitness for your purpose and wse. Wolcotts makes no representation or sananty, express or implied, with respect to the merchantability or fitness of this form for an intended use or purpose. 020 7 AUSA IIGNi R'd'ATFR CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MARCH 22, 2004 SUBJECT: ADDITION OF $10,000 TO THE CONTRACT OF KENNEDY/JENKS CONSULTANTS FOR WATER TREATMENT PLANT PILOT STUDY RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve of the addition of $10,000 to the contract amount of Kennedy/Jenks Consultants (KJ) for additional services on the Water Treatment Plant Pilot Study. BACKGROUND KJ was hired by Utility Board action at the June 2003 Board meeting to conduct a pilot study to aid in the selection of the treatment process to be used in the planned new water treatment plant. To date, excellent data have been gathered from the pilot plant research, and it has been recommended to extend the pilot plant operation for one additional month to test various coagulants and variations on the coagulant contact times for influent water sources to the pilot plant. FISCAL IMPACT The fiscal impact of this payment is $10,000 to be funded from the approved Capital Improvement Project budget for 2003-2004, Account No. 32-80-000-721-7130/72103E- 7130. Prepared by: Chet Anderson, Assistant Director- Water Operations 021 FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE� DATE: MARCH 22, 2004 SUBJECT: AMEND BLANKET PURCHASE ORDER TO OSMOSE, INC. FOR WOOD POLE INSPECTION, TREATMENT AND REPAIRS RECOMMENDATION It is recommended that the Azusa Utility Board/City Council authorize staff to amend the blanket purchase order to Osmose, Inc. for wood pole inspection, treatment and repairs from $100,000 to $175,000, a net increase of $75,000. BACKGROUND Azusa Light and Water conducts annual wood pole inspection, treatment and repair program to provide our customers, employees, and the general public with a safer and more reliable electric system. Osmose, Inc. has provided our wood pole inspection, treatment and repairs in the last four fiscal years. In the first three years of the program, 2,400 poles were inspected and 255 poles failed inspection and were rejected. Of the poles that failed inspection, 171 were repaired with steel struts and 32 poles have been replaced by field crews. This year we are going to test an additional 850 poles. The number of poles that require replacement currently stands at 52 with that number expected to increase with this year's inspection. In order to accelerate pole replacement, the electric division is requesting that the blanket purchase order with Osmose, Inc. be increased from $100,000 to $175,000 this fiscal year. The request for a net increase of $75,000 to the blanket purchase order allows for 10 additional poles to be changed -out this fiscal year. FISCAL IMPACT The fiscal impact to the operating budget is $75,000 and budgeted funds are available in electrical operating account 33-40-735-930-6493. Prepared by: Dave Ramirez, Assistant Director—Electric Operations 022 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESAr DATE: MARCH 22, 2004 �j W SUBJECT: EXECUTION OF JOINT USE AGREEMENT BY CITY OF AZUSA TO GRANT EASEMENT TO SOUTHERN CALIFORNIA EDISON COMPANY, FOR THE PURPOSE OF RELOCATING OVERHEAD TELECOMMUNICATION FACILITIES TO UNDERGROUND WITHIN PARKSIDE AZUSA 11, TRACT NO. 52992 RECOMMENDATION It is recommended that the Utility Board/City Council execute the Joint Use Agreement by attached Resolution. BACKGROUND Conditions of approval for development of Parkside Azusa 11 require that the developer relocate all existing overhead facilities to underground along Jackson between Parkside Street and Jerez Street. In addition to Azusa's electric facilities, Southern California Edison Company (SCE) currently has overhead telecommunication facilities attached to the power poles along this corridor. To accommodate the development and to relocate its overhead facilities to underground, SCE is requesting City of Azusa to grant an easement for a portion of the development shown in attached exhibit "A" by executing the Joint Use Agreement. Attached herewith is the Joint Use Agreement and its "Exhibit A" for the electric facilities located within portion of Tract No. 52992 in the City of Azusa along Jackson between Parkside Street and Jerez Street. Easement granted by the City of Azusa to SCE will be used for right-of-way access in the operation & maintenance of underground electric conduits, cables and related substructures installed at this property. 023 FISCAL IMPACT All costs associated with the processing of this grant of easement are borne by the SCE. There is no cost to the City. Prepared by: Hien K. Wong —Associate Engineer Attachment: Easement Reso. DOC Joint Use Agreement #2139. pdf 024 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA RELEASING A CERTAIN GRANT OF EASEMENT. THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. For a valuable consideration, receipt of which is hereby acknowledged, City of Azusa a municipal corporation, does hereby remiss, release and forever quitclaim to Southern California Edison Company all its right, title and interest in and to that certain easement for underground utility purposes, insofar and only insofar as said easement exists on, over, under and across and along the following described real properties situated in the CITY OF AZUSA, Los Angeles County, State of California, to wit: See Exhibit "A" attached hereto Joint Use Agreement SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED THIS day CRISTINA CRUZ -MADRID MAYOR 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City Council of the City of Azusa at a regular meeting of the Azusa Light & Water Utility Board on the 22nd day of March, 2004. AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 025 RECORDING REQUESTED BY SOUTHERN CALIFORNIA EDISON COMPANY WHEN RECORDED MAIL TO SOUTHERN CALIFORNIA EDISON COMPANY 14799 CHESTNUT STREET WESTMINSTER, CA. 92683-5240 ATTN: TITLE & REAL ESTATE SERVICES RP File No. REL0385593 Serial No. 65889A Affects SCE DOC. 475705 Job Order: 2139 SPACE ABOVE THIS LINE FOR RECORDER'S USE JOINT USE AGREEMENT THIS AGREEMENT, made and entered into this _ day of 20_, by and between SOUTHERN CALIFORNIA EDISON COMPANY, a corporation, hereinafter called "Company", and the CITY OF AZUSA, a municipal corporation of the State of California, hereinafter called "City", WITNESSETH: THAT WHEREAS Company is the owner in possession of certain rights of way and easement(s) for electrical facilities by virtue of the following easement rights: That certain Grant of Easement from County Sanitation District No. 22 of Los Angeles County, a body corporate and politic, recorded September 10, 2001, a Instrument No. 01-1704319 of Official Records, in the Office of the County Recorder of Los Angeles County, hereinafter referred to as "Company's Easement"; and WHEREAS City has acquired easement rights for street and highway purposes for the construction and/or improvement of Parkside Street and Jackson Avenue in said City, County of Los Angeles, State of California, hereinafter referred to as "highway right of way", as shown on the print attached hereto, marked "Exhibit A" and hereby made a part hereof which said highway right of way is subject to Company's easement; and WHEREAS Company's facilities as now installed and located on said highway right of way will interfere with or obstruct the construction, reconstruction, maintenance or use of said street or highway, and City desires to eliminate such interference or obstruction; NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, Company and City do hereby agree as follows: The location of Company's easement insofar as it now lies within the said highway right of way, be, and it hereby is, changed to the strip of land within said highway right of way, hereinafter referred to as "new location", and shown and designated as "Area in Joint Use Agreement" on said print marked "Exhibit A". Company agrees to rearrange, relocate and reconstruct within said new location, any of its facilities heretofore or now installed pursuant to Company's easement within said highway right of 026 Joint Use Agreement S.C.E. Co., a corp., to The City of Azusa Serial 65889A RP File: REL0385593 Affects SCE Document 475705 way. Company hereby consents to the construction, reconstruction, maintenance or use by City of a street or highway over, along and upon Company's easement, both in the old location and in the new location within said highway right of way, upon and subject to the terms and conditions herein contained. City acknowledges Company's title to Company's easement in said new location and the priority of Company's title over the title of City in said new location. Company has and reserves the right and easement to use, in common with the public's use of said street or highway, said new location for all of the purposes for which Company's easement was acquired, without need for any further permit or permission from City. Except in emergencies, Company shall give reasonable notice to City before performing any work on Company's facilities in said new location where such work will obstruct traffic. In all cases, Company shall exercise due care for the protection of the traveling public. In the event that the future use of said highway right of way shall at any time or times necessitate a rearrangement, relocation, reconstruction or removal of any of Company's facilities then existing in said new location, and City shall notify Company in writing of such necessity and agree to reimburse Company on demand for its costs incurred in complying with such notice, Company will provide City with plans of its proposed rearrangement and an estimate of the cost thereof, and upon approval of such plans by City, Company will promptly proceed to effect such rearrangement, relocation, reconstruction or removal. Company shall ' exercise due care for the protection of the traveling public. No further permit or permission from City for such rearrangement, relocation or reconstruction shall be required and City will (1) enter into a Joint Use Agreement on the same terms and conditions as are herein set forth covering any such subsequent relocation of Company's facilities within said highway rights of way, (2) provide executed document(s) granting to Company a good and sufficient easement or easements over private property if necessary to replace Company's easement or any part thereof, and (3) reimburse Company for any costs which it may be required to expend to acquire such easement or easements, provided it is mutually agreed in writing that Company shall acquire such easement or easements. City agrees to indemnify, defend and reimburse Company for any loss Company may suffer because of any lack of or defect in City's title to said new location or any subsequent location within said highway right of way, or in the title to any easement provided by City over private property, to which Company relocates its facilities pursuant to the provisions hereof, and City agrees that if Company is ever required to relocate its facilities because of any such lack of or defect in title, City shall reimburse Company for the cost of relocating its facilities and any other reasonable costs arising therefrom, such as, but not limited to, costs to acquire any right of way required for such relocation. City shall not reimburse Company for any loss caused by Company's own fault or negligence. Except as expressly set forth herein, this agreement shall not in any way alter, modify or terminate any provision of Company's easement. Both City and Company shall use said new location in such a manner as not to interfere unduly with the rights of the other. Nothing herein contained shall be construed as a release or waiver of any claim for compensation or damages which Company or City may now have or may hereafter acquire resulting from the construction of additional facilities or the alteration of existing facilities by either City or Company in such a manner as to cause an unreasonable interference with the use of said new location by the other party. City agrees that Company's facilities shall not be damaged by reason of the construction, reconstruction or -2- 027 Joint Use Agreement S.C.E. Co., a corp., to The City of Azusa Serial 65889A RP File: REL0385593 Affects SCE Document 475705 maintenance of said street or highway, by the City or its contractors, and that, if necessary, City will protect Company's facilities against any such damage, at City's expense. Company shall have the right to remove, trim or top any vegetation, brush, tree or trees which may grow in said new location in said highway right of way, and which in the opinion of Company may endanger or interfere with the proper operation or maintenance of Company's facilities, to the extent necessary to prevent any such interference or danger. This agreement shall inure to the benefit of and be binding upon the Company and the City and their respective successors and assigns. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in duplicate by their respective officers thereunto duly authorized, as of the day and year herein first above written. SOUTHERN CALIFORNIA EDISON COMPANY, a corporation 0 Debra Holley Right of Way Agent Real Estate Operations Division Corporate Real Estate Department CITY OF AZUSA By:_ Name: Name: Title: -3- 028 Joint Use Agreement S.C.E. Co., a corp., to The City of Azusa Serial 65889A RP File: REL0385593 Affects SCE Document 475705 STATE OF CALIFORNIA ) ss. COUNTY OF On , before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that (he/she) executed the same in (his/her) authorized capacity and that by (his/her) signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Signature STATE OF CALIFORNIA ) ss. COUNTY OF On , before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that (he/she/they) executed the same in (his/her/their) authorized capacity and that by (his/her/their) signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Signature M n�7 WITHIN A PORTION OF TRACT No, 52992, M.B. 1283/83, CITY OF AZUSA STATE OF CALIFORNIA a 25.5' —PARKSIDE---ST.-- -- --- —FIV 25 24 23 , 4B 15 I---14 , I I w I <r1 •-V 16 26 22 v N I" 17 27 21 Z. (c) 2� 5--1Y B (1 V 28 20 5, 10' I N N 19 ---JEREZ— ST.-----' UANO JEREZ — ST.-- SU— �Gp 0 ` v $. 7973 it Exp. 12 3 I EXHIBIT "A" LEGEND FOFCAUFpP`'\p AREA IN JOINT USE AGREEMENT WITH THE 0 30 60 120 CITY OF AZUSA 3582.90 SOFT. = 0.08 ACRES SCALE IN FEET PROJECT NAME: CTAC IRWINDALE CORP WAREHOUSE M.S. 55-91 MAP & F.B. REF: 10512 59-61, TR 52992, 1283/83 CITY: AZUSA DRAWN BY: R. CORDOVA SURVEYED BY: MORSE COUNTY: LOS ANGELESEDISON - DATE: 12-15—D LAND INFO.: J. GLASSER SER.: 55889A J.0.:2139 LES:5511 INTERNAFN)NAL CHECKED BY: L. KELLEY File Name: M:\ARCHIVE\DRAWING\RC5511A.DWI u 3 V . . . ti .7:Clf, A, _ __ . _F— �_ � ,,.... .....,.;,,.,�, ..... __..... ..e _z..._;......ve.. �.�, ....,a.:..:._.,._ .,.,,,. ,....-._ .,,:.. AZUSA _CHT i MRiEl AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: . MARCH 22, 2004 SUBJECT: P• ICY GOVERNORING TRANSFERS FROM UTILITY TO THE CITY RECOMMENDATIO It is recommended that he Azusa Utility Board/City Council approve the following resolutions: A. RESOLUTION OF T CITY COUNCIL OF THE CITY&AZUSA, CALIFORNIA, ESTABLISHING A POL CY CONCERNING THE-OBLIGATIONS OF THE CITY'S ELECTRIC UTILITY OPERATIONS • COVER GENE FUND SUPPORT SERVICE COSTS AND OTHERWISE PAY ITS FAI' SHAREO ITAL IMPROVEMENT COSTS RELATED TO UTILITY OPERATIONS. 7 B. RESOLUTION OF THE •OUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ESTABLISHING A P 6 ICY CO CERNING THE OBLIGATIONS OF THE CITY'S WATER UTILITY OPE' ' ONS TO COV,R GENERAL FUND SUPPORT SERVICE COSTS AND OTHERWIS AY ITS FAIR SHAR, OF CAPITAL IMPROVEMENT COSTS RELATED TO UTILITY ' ERATIONS. BACKGR• 1 ND During these past several months, the Azusa ility Board/City Council has provided direction and guidance to staff on its desire to establish a fiscally sound policy with respect to transfers from the Utilities to the City's General Fund. The Utility Board/City Council has directed that a transfer policy be developed that is legally defensible, respects existing long-term financing agreements, is administratively simple, fair to the Utilities department, transparent, and provides staff with a reasonably predictable way of forecasting costs and revenues so Utilities department and City staff know what to expect when preparing the budget from year to year. Historically, the City has transferred funds from the Electric Utility in four main ways: (1) dik Franchise Fees; (2) In-Lieu Fees; (3) Support Services Allocation; and (4) Interest In /' ,o ?'?), 4,ot Z • r7 u o To formally establish a transfer policy for the Electric Utility in each of these areas, the attached resolution has been prepared, which will: A. Set franchise fee at 2% of retail sales B. Set In-Lieu franchise fee at 8% of retail sales C. Establish an annual procedure to be followed during budget process to determine City General Fund support service cost allocation to the Electric Utility D. Allow for an annual transfer of interest income from Electric Fund reserve to General Fund, under following conditions: (1) that there is positive net income in Electric Fund for past Fiscal Year; and (2) that funds used are for capital improvements related to Electric Utility infrastructure. In regards to the Water Utility, transfers have been made to the City in a historically similar fashion to that of the Electric Utility. To formally establish a policy for Water Fund transfers to the City's General Fund, a second resolution has been prepared and is attached, which will: A. Set franchise fee at 2% of retail sales B. Establish a water right lease based on acre feet owned by City (excluding Azusa Valley Water Company's water rights) multiplied by average of water replacement costs C. Establish an annual procedure to be followed during budget process to determine City General Fund support service cost allocation to the Water Utility D. Allow for an annual transfer of interest income from Water Fund reserve to General Fund, under following conditions: (1) that there is positive net income in Water Fund for past Fiscal Year; and (2) that funds used are for capital improvements related to Water Utility infrastructure Most sections of attached resolutions were prepared by City Attorney's office with input from Utilities staff. The resolutions are in substantially final form, however, minor adjustments may be introduced at the meeting pending additional feedback from the City Attorney's office. FISCAL IMPACT Since a proposed budget has not been completed for fiscal year 2004-05, we cannot fully assess the fiscal impact of this policy on the City's General Funds for next year. However, using this methodology based on fiscal year 2003-04 numbers, and basing it on adjustments identified to date, would result in an increased allocation of about $100,000, subject to final refinements. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Attachments: t = Reso-Electric.doc Reso Water.doc . 032 . RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ESTABLISHING A POLICY CONCERNING THE OBLIGATIONS OF THE CITY'S ELECTRIC UTILITY OPERATIONS TO COVER GENERAL FUND SUPPORT SERVICE COSTS AND OTHERWISE PAY ITS FAIR SHARE OF CAPITAL IMPROVEMENT COSTS RELATED TO UTILITY OPERATIONS WHEREAS, the City Council of the City of Azusa serving as the City's Utility Board met on February 23, 2004, to discuss the City's General Fund support services costs related to the City's various utility operations; and WHEREAS, the City Council desires that the General Fund fully recover all direct and indirect support service costs and any and all other "franchise fees" or allocations authorized by law; and WHEREAS, the City Council desires that the methodology to allocate support service costs be consistent with the City's guiding principles that the allocations be administratively simple, fair, transparent and predictable; and WHEREAS, the City Council has determined that a combination of statutory franchise fees, an in-lieu property franchise fee applicable to the electric utility, interest income sharing with the General Fund and direct support service cost allocation reimbursements are consistent with the City's guiding principles; and WHEREAS, in August 2003 the City has entered into Series B and C Installment Sales Agreements ("Agreements") with the Financing Authority for Resource Efficiency of California ("FARECaI") in connection with the issuances of Series B and C Certificate of Participation for the electric utility; and WHEREAS, the Agreements established flow of revenue covenants in the use of electric utility's GROSS REVENUES as such term is defined in the Agreements; and WHEREAS, the electric fund transfers to the General Fund contemplated herein further incorporate by reference the principles outlined in the flow of revenue covenants of the Agreements; NOW THEREFORE, THE CITY COUNCIL DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby authorizes the following allocation transfers from the Electric Utility fund to the General Fund: 033 A. In accordance with the California Public Utility Code provisions related to the establishment of franchise fees by general law cities, the Electric Utility shall pay a franchise fee of two (2) percent on retail electric sales to the General Fund. Such franchise fees shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. B. Because the Electric Utility operations do not otherwise incur operating costs related to the payment of property and other taxes that a private utility operation, the use of property that would otherwise be available to private users subject to such property and other taxes is a direct loss of revenue to the City's General Fund. As Electric Utility rates are exempt from the provisions of Proposition 218 the City Council finds that it is reasonable and fair that the Electric Utility pay an in-lieu fee franchise fee of up to eight (8) percent on retail electric sales to the General Fund. Such in-lieu franchise fees shall not be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. C. As the Electric Utility operations impacts the City's infrastructure and capital improvements the Electric Utility shall contribute to a capital improvement fund established by Ordinance of the City Council. The capital improvement fund shall be used solely to finance those capital improvement items that are directly impacted by the Electric Utility operation. The Electric Utility shall contribute to this fund from interest earned on those Electric Utility reserved funds that are invested. The contribution to the capital improvement fund shall be made within sixty (60) days of the close of each Fiscal Year, provided, however, that if the Electric Utility operation does not net positive income from the Fiscal Year that has closed, then the Electric Utility shall have no obligation to contribute the interest earnings to the capital improvement fund. Such interest transfer shall not be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. D. In accordance with common practices related to direct cost recovery and court decisions, the Electric Utility shall reimburse the General Fund for all direct City support service costs in accordance with the following two-step process: i. Step 1: A determination shall be made as to the total amount of all General Fund costs associated with general City support services that are provided to all City departments. (General City support services shall include, but not be limited to, those departments like the City Administration, City Clerk's Office, Finance Department, Human Resources, and Information Technology). The total amount of General Fund costs associated with these general City support service departments shall be made during the budget preparation process for the subsequent Fiscal Year. 034 ii. Step 2: The percentage share of the Utilities' full time equivalent (FTE) employees shall be determined as a percent of the total FTE employees for all departments of the City of Azusa. The General Fund support services cost determined in Step 1 shall then be multiplied by Utilities' FTE percentage share to determine the support services cost allocation to the Utilities. The Electric Utility's share of this amount shall be thirty-five (35) percent of the allocation. Such cost reimbursements to the General Fund for all direct City support service shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. SECTION 2. This Resolution shall take effect upon its adoption by the City Council. PASSED, APPROVED AND ADOPTED this 22 day of March, 2004. Cristina C. Madrid, Mayor ATTEST: Vera Mendoza, City Clerk APPROVED AS TO FORM: By: Best Best& Krieger LLP City Attorney 035 I HEREBY CERTIFY that the foregoing Resolution No. 04- was duly adopted by the City Council of the City of Azusa, at a regular meeting thereof, held on the 22nd day of March, 2004 by the following vote of the Board. AYES: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Vera Mendoza, City Clerk 036 RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ESTABLISHING A POLICY CONCERNING THE OBLIGATIONS OF THE CITY'S WATER UTILITY OPERATIONS-TO COVER GENERAL FUND SUPPORT SERVICE COSTS AND OTHERWISE PAY ITS FAIR SHARE OF CAPITAL IMPROVEMENT COSTS RELATED TO UTILITY OPERATIONS. WHEREAS, the City Council of the City of Azusa serving as the City's Utility Board met on February 23, 2004, to discuss the City's General Fund support services costs related to the City's various utility operations; and WHEREAS, the City Council desires that the General Fund fully recover all direct and indirect support service costs and any and all other"franchise fees" or allocations authorized by law; and WHEREAS, the City Council desires that the methodology to allocate support service costs be consistent with the City's guiding principles that the allocations be administratively simple, fair, transparent and predictable; and WHEREAS, the City Council has determined that a combination of statutory franchise fees applicable to the water utility, compensation to the City for the use of City's water rights, interest income sharing with the General Fund and direct support service cost allocation reimbursements are consistent with the City's guiding principles; and WHEREAS, in August 2003 the City has entered into Series A Installment Sales Agreements ("Agreement") with the Financing Authority for Resource Efficiency of California ("FARECaI") in connection with the issuance of Series A Certificate of Participation for the water utility; and WHEREAS, the Agreement established flow of revenue covenants in the use of water utility's GROSS REVENUES as such term is defined in the Agreement; and WHEREAS, the water fund transfers to the General Fund contemplated herein further incorporate by reference the principles outlined in the flow of revenue covenants of the Agreement, NOW THEREFORE, THE CITY COUNCIL DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby authorizes the following allocation transfers from the Water Utility fund to the General Fund: 037 A. In accordance with the California Public Utility Code provisions related to the establishment of franchise fees by general law cities, the Water Utility shall pay a franchise fee of two (2) percent on retail electric sales to the General Fund. Such franchise fees shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreement. B. As the custodian of City's water rights in the provision of water services, the Water Utility shall compensate the City for the use of City's water rights, inclusive of Azusa Agricultural Water Company's water rights owned by the City, but exclusive of the former Azusa Valley Water Company's water rights owned by the City. Such annual compensation shall be determined as product of City acre feet water rights multiplied by weighted average cost per acre foot of replacement water costs as determined by the Utility. Such compensation shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreement. C. As the Water Utility operations impact the City's infrastructure and capital improvements the Water Utility shall contribute to a capital improvement fund established by Ordinance of the City Council. The capital improvement fund shall be used solely to finance those capital improvement items that are directly impacted by the Water Utility operation. The Water Utility shall contribute to this fund from interest earned on those Water Utility reserved funds that are invested. The contribution to the capital improvement fund shall be made within sixty (60) days of the close of each Fiscal Year, provided, however, that if the Water Utility operation does not net positive income from the Fiscal Year that has closed, then the Water Utility shall have no obligation to contribute the interest earnings to the capital improvement fund. Such interest transfer shall not be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. D. In accordance with common practices related to direct cost recovery and court decisions, the Water Utility shall reimburse the General Fund for all direct City support service costs in accordance with the following two-step process: i. Step 1: A determination shall be made as to the total amount of all General Fund costs associated with general City support services that are provided to all City departments. (General City support services shall include, but not be limited to, those departments like the City Administration, City Clerk's Office, Finance Department, Human Resources, and Information Technology). The total amount of General Fund costs associated with these general City support service departments shall be made during the budget preparation process for the subsequent Fiscal Year. 038 ii. Step 2: The percentage share of the Utilities' full time equivalent (FTE) employees shall be determined as a percent of the total FTE employees for all departments of the City of Azusa. The General Fund support services cost determined in Step 1 shall then be multiplied by Utilities' FTE percentage share to determine the support services cost allocation to the Utilities. The Water Utility's share of this amount shall be sixty-five (65) percent of the allocation. Such cost reimbursements to the General Fund for all direct City support service shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. SECTION 2. This Resolution shall take effect upon its adoption by the City Council. PASSED, APPROVED AND ADOPTED this day of March, 2004. Cristina C. Madrid, Mayor ATTEST: Vera Mendoza, City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney 039 I HEREBY CERTIFY that the foregoing Resolution No. 04-C21 was duly adopted by the City Council of the City of Azusa, at a regular meeting thereof, held on the 15th day of March, 2004 by the following vote of the Board. AYES: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Vera Mendoza, City Clerk • 040 C 5 irlii.� AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE:. MARCH 22, 2004 SUBJECT: POLICY GOVERNORING TRANSFERS FROM UTILITY TO THE CITY RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve the following resolutions: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ESTABLISHING A POLICY CONCERNING THE OBLIGATIONS OF THE CITY'S ELECTRIC UTILITY OPERATIONS TO COVER GENERAL FUND SUPPORT SERVICE COSTS AND OTHERWISE PAY ITS FAIR SHARE OF CAPITAL IMPROVEMENT COSTS RELATED TO UTILITY OPERATIONS. B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ESTABLISHING A POLICY CONCERNING THE OBLIGATIONS OF THE CITY'S WATER UTILITY OPERATIONS TO COVER GENERAL FUND SUPPORT SERVICE COSTS AND OTHERWISE PAY ITS FAIR SHARE OF CAPITAL IMPROVEMENT COSTS RELATED TO UTILITY OPERATIONS. BACKGROUND During these past several months, the Azusa Utility Board/City Council has provided direction and guidance to staff on its desire to establish a fiscally sound policy with respect to transfers from the Utilities to the City's General Fund. The Utility Board/City Council has directed that a transfer policy be developed that is legally defensible, respects existing long-term financing agreements, is administratively simple, fair to the Utilities department, transparent, and provides staff with a reasonably predictable way of forecasting costs and revenues so Utilities department and City staff know what to expect when preparing the budget from year to year. Historically, the City has transferred funds from the Electric Utility in four main ways: (1) Franchise Fees; (2) In -Lieu Fees; (3) Support Services Allocation; and (4) Interest Income. 031 To formally establish a transfer policy for the Electric Utility in each of these areas, the attached resolution has been prepared, which will: A. Set franchise fee at 2% of retail sales B. Set In -Lieu franchise fee at 8% of retail sales C. Establish an annual procedure to be followed during budget process to determine City General Fund support service cost allocation to the Electric Utility D. Allow for an annual transfer of interest income from Electric Fund reserve to General Fund, under following conditions: (1) that there is positive net income in Electric Fund for past Fiscal Year; and (2) that funds used are for capital improvements related to Electric Utility infrastructure. In regards to the Water Utility, transfers have been made to the City in a historically similar fashion to that of the Electric Utility. To formally establish a policy for Water Fund transfers to the City's General Fund, a second resolution has been prepared and is attached, which will: A. Set franchise fee at 2% of retail sales B. Establish a water right lease based on acre feet owned by City (excluding Azusa Valley Water Company's water rights) multiplied by average of water replacement costs C. Establish an annual procedure to be followed during budget process to determine City General Fund support service cost allocation to the Water Utility D. Allow for an annual transfer of interest income from Water Fund reserve to General Fund, under following conditions: (1) that there is positive net income in Water Fund for past Fiscal Year; and (2) that funds used are for capital improvements related to Water Utility infrastructure Most sections of attached resolutions were prepared by City Attorney's office with input from Utilities staff. The resolutions are in substantially final form, however, minor adjustments may be introduced at the meeting pending additional feedback from the City Attorney's office. FISCAL IMPACT Since a proposed budget has not been completed for fiscal year 2004-05, we cannot fully assess the fiscal impact of this policy on the City's General Funds for next year. However, using this methodology based on fiscal year 2003-04 numbers, and basing it on adjustments identified to date, would result in an increased allocation of about $100,000, subject to final refinements. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Attachments: Lk Reso-ElectrLdoc Reso Water. doc 032 RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ESTABLISHING A POLICY CONCERNING THE OBLIGATIONS OF THE CITY'S ELECTRIC UTILITY OPERATIONS TO COVER GENERAL FUND SUPPORT SERVICE COSTS AND OTHERWISE PAY ITS FAIR SHARE OF CAPITAL IMPROVEMENT COSTS RELATED TO UTILITY OPERATIONS WHEREAS, the City Council of the City of Azusa serving as the City's Utility Board met on February 23, 2004, to discuss the City's General Fund support services costs related to the City's various utility operations; and WHEREAS, the City Council desires that the General Fund fully recover all direct and indirect support service costs and any and all other "franchise fees" or allocations authorized by law; and WHEREAS, the CityCouncil desires that the methodology to allocate support service costs be consistent with the City's guiding principles that the allocations be administratively simple, fair, transparent and predictable; and WHEREAS, the City Council has determined that a combination of statutory franchise fees, an in -lieu property franchise fee applicable to the electric utility, interest income sharing with the General Fund and direct support service cost allocation reimbursements are consistent with the City's guiding principles; and WHEREAS, in August 2003 the City has entered into Series B and C Installment Sales Agreements ("Agreements") with the Financing Authority for Resource Efficiency of California ("FARECal") in connection with the issuances of Series B and C Certificate of Participation for the electric utility; and WHEREAS, the Agreements established flow of revenue covenants in the use of electric utility's GROSS REVENUES as such term is defined in the Agreements; and WHEREAS, the electric fund transfers to the General Fund contemplated herein further incorporate by reference the principles outlined in the flow of revenue covenants of the Agreements; NOW THEREFORE, THE CITY COUNCIL DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby authorizes the following allocation transfers from the Electric Utility fund to the General Fund: 033 A. In accordance with the California Public Utility Code provisions related to the establishment of franchise fees by general law cities, the Electric Utility shall pay a franchise fee of two (2) percent on retail electric sales to the General Fund. Such franchise fees shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. B. Because the Electric Utility operations do not otherwise incur operating costs related to the payment of property and other taxes that a private utility operation, the use of property that would otherwise be available to private users subject to such property and other taxes is a direct loss of revenue to the City's General Fund. As Electric Utility rates are exempt from the provisions of Proposition 218 the City Council finds that it is reasonable and fair that the Electric Utility pay an in -lieu fee franchise fee of up to eight (8) percent on retail electric sales to the General Fund. Such in -lieu franchise fees shall not be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. C. As the Electric Utility operations impacts the City's infrastructure and capital improvements the Electric Utility shall contribute to a capital improvement fund established by Ordinance of the City Council. The capital improvement fund shall be used solely to finance those capital improvement items that are directly impacted by the Electric Utility operation. The Electric Utility shall contribute to this fund from interest earned on those Electric Utility reserved funds that are invested. The contribution to the capital improvement fund shall be made within sixty (60) days of the close of each Fiscal Year, provided, however, that if the Electric Utility operation does not net positive income from the Fiscal Year that has closed, then the Electric Utility shall have no obligation to contribute the interest earnings to the capital improvement fund. Such interest transfer shall not be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. D. In accordance with common practices related to direct cost recovery and court decisions, the Electric Utility shall reimburse the General Fund for all direct City support service costs in accordance with the following two-step process: Step 1: A determination shall be made as to the total amount of all General Fund costs associated with general City support services that are provided to all City departments. (General City support services 1 shall include, but not be limited to th a departments like the City Admirns ration, City Clerk's Office, Finance Department, Human Resources, and Information Technology). The total amount of General Fund costs associated with these general City support service departments shall be made during the budget preparation process for the subsequent Fiscal Year. 034 ii. Step 2: The percentage share of the Utilities' full time equivalent (FTE) employees shall be determined as a percent of the total FTE employees for all departments of the City of Azusa. The General Fund support services cost determined in Step 1 shall then be multiplied by Utilities' FTE percentage share to determine the support services cost allocation to the Utilities. The Electric Utility's share of this amount shall be thirty-five (35) percent of the allocation. Such cost reimbursements to the General Fund for all direct City support service shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. SECTION 2. This Resolution shall take effect upon its adoption by the City Council. PASSED, APPROVED AND ADOPTED this 22 day of March, 2004. Cristina C. Madrid, Mayor ATTEST: Vera Mendoza, City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP City Attorney 035 I HEREBY CERTIFY that the foregoing Resolution No. 04- was duly adopted by the City Council of the City of Azusa, at a regular meeting thereof, held on the 22nd day of March, 2004 by the following vote of the Board. AYES: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Vera Mendoza, City Clerk 036 RESOLUTION NO. 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ESTABLISHING A POLICY CONCERNING THE OBLIGATIONS OF THE CITY'S WATER UTILITY OPERATIONS'TO COVER GENERAL FUND SUPPORT SERVICE COSTS AND OTHERWISE PAY ITS FAIR SHARE OF CAPITAL IMPROVEMENT COSTS RELATED TO UTILITY OPERATIONS. WHEREAS, the City Council of the City of Azusa serving as the City's Utility Board met on February 23, 2004, to discuss the City's General Fund support services costs related to the City's various utility operations; and WHEREAS, the City Council desires that the General Fund fully recover all direct and indirect support service costs and any and all other "franchise fees" or allocations authorized by law; and WHEREAS, the City Council desires that the methodology to allocate support service costs be consistent with the City's guiding principles that the allocations be administratively simple, fair, transparent and predictable; and WHEREAS, the City Council has determined that a combination of statutory franchise fees applicable to the water utility, compensation to the City for the use of City's water rights, interest income sharing with the General Fund and direct support service cost allocation reimbursements are consistent with the City's guiding principles; and WHEREAS, in August 2003 the City has entered into Series A Installment Sales Agreements ("Agreement") with the Financing Authority for Resource Efficiency of California ("FARECal") in connection with the issuance of Series A Certificate of Participation for the water utility; and WHEREAS, the Agreement established flow of revenue covenants in the use of water utility's GROSS REVENUES as such term is defined in the Agreement; and WHEREAS, the water fund transfers to the General Fund contemplated herein further incorporate by reference the principles outlined in the flow of revenue covenants of the Agreement, NOW THEREFORE, THE CITY COUNCIL DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby authorizes the following allocation transfers from the Water Utility fund to the General Fund: 037 A. In accordance with the California Public Utility Code provisions related to the establishment of franchise fees by general law cities, the Water Utility shall pay a franchise fee of two (2) percent on retail electric sales to the General Fund. Such franchise fees shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreement. B. As the custodian of City s water rights in the provision of water services, the Water Utility shall compensate the City for the use of City's water rights, inclusive of Azusa Agricultural Water Company's water rights owned by the City, but exclusive of the former Azusa Valley Water Company's water rights owned by the City. Such annual compensation shall be determined as product of City acre feet water rights multiplied by weighted average cost per acre foot of replacement water costs as determined by the Utility. Such compensation shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreement. C. As the Water Utility operations impact the City's infrastructure and capital improvements the Water Utility shall contribute to a capital improvement fund established by Ordinance of the City Council. The capital improvement fund shall be used solely to finance those capital improvement items that are directly impacted by the Water Utility operation. The Water Utility shall contribute to this fund from interest earned on those Water Utility reserved funds that are invested. The contribution to the capital improvement fund shall be made within sixty (60) days of the close of each Fiscal Year, provided, however, that if the Water Utility operation does not net positive income from the Fiscal Year that has closed, then the Water Utility shall have no obligation to contribute the interest earnings to the capital improvement fund. Such interest transfer shall not be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. D. In accordance with common practices related to direct cost recovery and court decisions, the Water Utility shall reimburse the General Fund for all direct City support service costs in accordance with the following two-step process: Step 1: A determination shall be made as to the total amount of all General Fund costs associated with general City support services that are provided to all City departments. (General City support services shall include, but not be limited to, those departments like the City Administration, City Clerk's Office, Finance Department, Human Resources, and Information Technology). The total amount of General Fund costs associated with these general City support service departments shall be made during the budget preparation process for the subsequent Fiscal Year. ] r4 ii. Step 2: The percentage share of the Utilities' full time equivalent (FTE) employees shall be determined as a percent of the total FTE employees for all departments of the City of Azusa. The General Fund support services cost determined in Step 1 shall then be multiplied by Utilities' FTE percentage share to determine the support services cost allocation to the Utilities. The Water Utility's share of this amount shall be sixty-five (65) percent of the allocation. Such cost reimbursements to the General Fund for all direct City support service shall be considered as Operation and Maintenance Expenses as such term is defined in the Agreements. SECTION 2. This Resolution shall take effect upon its adoption by the City Council. PASSED, APPROVED AND ADOPTED this _ day of March, 2004. ATTEST: Vera Mendoza, City Clerk APPROVED AS TO FORM: an Best Best & Krieger LLP City Attorney Cristina C. Madrid, Mayor r •, I HEREBY CERTIFY that the foregoing Resolution No. 04-C21 was duly adopted by the City Council of the City of Azusa, at a regular meeting thereof, held on the 15th day of March, 2004 by the following vote of the Board. AYES: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Vera Mendoza, City Clerk It Legislative and Regulatory Update Prepared by Bob Tang March 22, 2004 041 Overview • Provide timely information regarding legislation and regulation which impact the Utilities 2 042 AB 2006 (Nunez) — Electricity Restructurina • Apply to State's Investor Owned Utilities ("IOUs") • Restructure State's electricity market in "core" and "non-core" customers • Provide "direct access" to "no -core" customers ("non-core" customers are those customers with electric demand above 500 kW) • Establish clearly defined cost recovery mechanisms for the IOUs for the recovery of prudently incurred generation procurement costs • Re-establish IOUs' "obligation to serve" in the "core" customer market • Provide lengthy "lock -in" period for "non-core" customers should the decide to stay with the IOUs (if "non-core" customers choose to stay with the IOUs, then they are locked in for five years without the opportunity to leave the IOUs) • Strong endorsement by Edison (termed "Edison's" bill) 3 043 AB 3005 (Calderon) and SB 1478 her) — Renewab • AB 3005 seeks to apply the mandate of SB 1078 to municipal utilities • Under AB 3005, the municipal governing bodies will lose the ability to define the Renewable Portfolio Standard (RPS) and thus disqualifying City's Hoover resource from the definition of renewable resources • SB 1478 substantially accelerates and increases the State's renewable energy targets to: 17% by 2006, 20% by 2010, and 33% by 2020. Current SB 1078 requires 20% renewable by 2017 • SB 1478 also seeks to apply the mandate to all electric utilities within the State, including the mums • SB 1478 is very prescriptive in terms of the procurement process, and it will make the compliance to it an onerous endeavor for small entities such as the City 0 OTC, IOU Exit Fees Debate • In early 2003, Cali'ornia'Public Utilities Commission (CPUC) issued an Order "exempting" the payments of exit fees by traditional 'Greenfield" municipal annexed customers ("Greenfield" means new customers that never existed before) • CPUC reversed itself on re -hearing on this matter in summer 2003 amid intense lobbying by the IOUs • California Municipal Utilities Association appealed CPUC's reversal to the State Supreme Court • Recently, the Supreme Court denied to hear the CMUA's appeal • Until new processes are established at CPUC and legislature to sort out the "muni departing load" issue, it is likely that customers "departing" from IOUs' service territory to be served by munis will pay exit fees even if the customers never existed before • Staff Is working with CMUA on further appeals at CPUC to establish exemptions for traditional municipal annexation customers. 5 045 Regulations for Perchlorate • Perchlorate, a known toxic ingredient of rocket fuel, munitions and fireworks which can affect the thyroid's production of hormones that are critical to early childhood development, is currently unregulated in the state and federal level • It is known for some time that Perchlorate has infiltrated some drinking water supplies, including the San Gabriel Valley • On March 11, 2004, the state's Office of Environmental Health Hazard Assessment published safety guidelines for the Perchlorate setting the stage for the state to be the first state in the Nation to regulate Perchlorate • The proposed guidelines call for 6 parts per billion (ppb) as the upper limit for safe human ingestion • Current there is one City well potentially affected by the safety guidelines. We can mitigate it with blending with good..water before deliverying the water into the distribution system. However, the regulation will require the City to closely monitor the pollutant level, potentially adding to costs ff x Prop. 50 Money to Private Utilities • Prop 50, passed in November 2002, authorized the state to issue general obligation bonds to fund a variety of water -related grant programs, such as programs to ensure safe drinking water, integrated regional water management etc... • The original eligibility criteria excluded private entities, including private water companies, from the grant money • However, recently the Department of Health Services (DHS), the Department of Water Resources (DWR) and the State Water Resources Control Board (SWRCB) are revising the grant eligibility criteria to include private entities • If the new criteria are adopted, it will reduce the pool of grant money to municipal water utilities • The muni community is working hard to preserve the original intent of Prop. 50 grant programs VA 047 T AZUSA LIGHT & WATER For Quality ,f Life March 11, 2004 The Honorable Ed Chavez California State Assembly State Capitol, Room 2188 Sacramento, CA 95814 City of Azusa SUBJECT: AB 3005 (CALDERON)--OPPOSE Dear Assembly Member Chavez, As the State faces record deficits and threatens to take revenue from local governments, it is surprising to us that some legislators want to create new programs and costs like those included.in AB 3005, which largely duplicate the requirements of SB 1078, but extend criminal penalties to municipal utilities for non-compliance. Specially, AB 3005 (Calderon) imposes a new unfunded state mandate on cities which have municipal electric utilities. The mandate requires municipal electric utilities to increase their purchasing of electricity from renewable sources such that by the year 2017, renewable energy makes up 20% of their purchases. AB 3005 also makes it a criminal offense if the goals specified are not met. Additionally, AB 3005 calls for the State Energy Commission to establish a renewable energy credits trading program and develop a tracking, accounting, verification and enforcement program—all to be carried out by the State. AB 3005 is unnecessary since it duplicates many of the provisions of SB 1078, which was adopted last year. SB 1078 encouraged municipal utilities to pursue the purchase of electricity from renewable energy sources, but not as a mandate which threatened criminal penalties. Nonetheless, we believe 513 1078 was adequate legislation for municipal utilities and in response to SB 1078, Azusa Light & Water actively pursued the purchase of electricity from a wind farm located in Solano County near Sacramento. This purchase was jointly undertaken by the cities of Anaheim, Colton, Glendale, and Pasadena, and Azusa now enjoys having renewables make up an 1 I% share of our energy portfolio. We believe that AB 3005 may also treat municipal utilities unfairly compared to how it treats investor owned utilities (IOUs). Under SB 1078, the IOU procurement is capped at what IOUs are currently spending on renewables through the collection of a fee called the public benefit charge. This charge went into effect under AB 1890 many Azusa Light & Water 729 N. Azusa Avenue R O. Box 9500 Azusa, California 91702 6261812-5208 (phone) 6261334-3163 (fax) www.azusalw.com (web) information@azusalw.com (e-mail) i Page 2 SUBJECT: AB 3005 March 11, 2004 years ago, under the State's disastrous electric restructuring legislation. Depending on the price of new renewable projects, IOUs may end up paying zero for new procurements of renewable resources, since those procurements might exceed the revenues IOUs get from their public benefit's charge. Yet under AB 3005 municipal utilities would that have not reached the 20% renewables goal, would likely have to increase rates to buy renewables. Through the energy crisis in California just a few short years ago, municipal electric utilities were a stabilizing force in California. The basis for this stability was our local control and obligation to serve our customers. This resulted in municipal utilities maintaining adequate energy resources to serve their electricity load. The vigilance of local control is also why many electric utilities embarked on the purchase of renewable energy this last year, and even before last year. Investor owned utilities and those seeking to enhance the sales of specific technologies have grossly misrepresented the renewables accomplishments of publicly owned utilities. For instance, the City of Alameda is currently 80% renewable, the City of Healdsburg is 80% renewable, the City of Santa Clara is 65% renewable. Some of these areas are more affluent than Azusa, but Azusa continues to strive to improve the environment in a way that respects the economic resources of our customers. Many of the above points were also made in the attached letter from the California Municipal Utilities Association. We respectfully urge you to vote against AB 3005. If you have any questions, please feel free to call Joe Hsu, Director of Utilities, at (626) 812-5219. Sincerely, Cristina Cruz -Madrid Mayor Diane Chagnon Utility Board Chairperson cc: Azusa Utility Board Members Diane Chagnon, Chairperson Dick Stanford, Vice Chairperson Cristina Cruz -Madrid, Board Member Joe Rocha, Board Member David Hardison, Board Member Rick Cole, City Manager Jerry Jordan, Executive Director, California Municipal Utilities Association Attachment 049 CALIFORNIA MUNICIPAL UTILITIES ASSOCIATION 915 L STREET, SUITE 1460 • SACRAMENTO. CALIFORNIA 95814 J916)441-1733 a FA%t9161441.4053 a %w .rmua.oq March 9, 2004 OFFICERS Peedde LARRY GARDNER Dear Assembly Member Calderon: San Dir The California Municipal Utilities Association is opposed to your AB 3005 Vice � AIARCIE Aroheim The Honorable Ronald S. Calderon California State Assembly s"r r' Room 2179 BERNARD State Capitol, `an Ben &O Sacramento, CA 95814 JOSVH E�HSU " Re: Opposition to AB 3005 JDD:Y IDRDAN, becvdve(D'm�tos C� \ S um+al cwmd LUNDALLA UdI Dear Assembly Member Calderon: BOARD OF GOVERNORS A BRDJINGER The California Municipal Utilities Association is opposed to your AB 3005 DAVID Pi.w C'RA" %%W Ag.KT which would mandate renewable portfolio standards only on publicly owned BLU D. CARNAHAN so. canbmla Pt b k Pw Aulhonky utilities. No similar mandate exists for investor owned utilities. THDAY3 K. CLARICE chyacuhm When the Legislature passed AB 1890, the states' disastrous electric PHYUA E CURRIE PasadW restructuring legislation, it recognized the importance of local COntro . a ' THDAWS R WANE result publicly owned utilities were not forced to divest existing power plants1 RWertlde or prevented from signing long tenni contracts to firm up their resource JAMS `R"eel� portfolios. Investor owned utilities on the other hand were forced to sell off a third of their resources and replace them with very expensive spot market cwRIk ERASER purchases. The local control provided to publicly owned utilities under AB DUANE GEORCISON 1890 has resulted in resource decisions by local elected officials that awwpaba+VAter DHRW dam^ ��^" significantly outperform the resource decisions of the California Public TOMNA6"Stl Utilities Commission. PATRKM E MAKIM s" R-9— both SB 1078 (Sher) mandated the consideration of renewable goals on PACK investor owned utilities and publicly owned utilities, it did not mandate ANDIONYJ. W" M6n ipd WiwD�vid renewable procurement on either" of utility. The-IOUprocurement'is JAMB ". PaPE Baha Cna capped at what they are currently spending on renewables through the .collection of the public benefits charge- I)epending on the price of new JAN SCHORJ Sanamenb m kVal Nifity Dimin renewable projects that cap could result in zero procurement of renewable sIwa in addition since they sold off. 1/3 of their power plants, they must ALLEN wde hdpllen o.� resources. procure new resources of some kind. Publicly owned utilities remained JOHN P` wA�UVC' adequately resourced throughout the energy crisis and have no need to add h,aa Hwa,: new projects as urgently. The operative sections of the current law are as FM Bay Mu Ixl Wiry Dimin follows: ILLATN L qWATIIER UaBeady LARRY W. VMS T &a brigaeton 06vkt DAVID W= Lm Ades Aa nRanllaSlml (of 01! P�6T011 d mtAi[ipd�y OWRd mTNli G.LUA members prmlde wfiy eerviee b revue man yPAd tlrt purple dCalRmmta 050 The Honorable Ronald S. Calderon Match 9, 2004 Page 2 Publicly owned utilities PUC Code387. (a) Each governing body of a local publicly owned electric utility, as defined in Section 9604, shall be responsible for implementing and enforcing a renewables portfolio standard that recognizes the intent of the Legislature to encourage renewable resources,.while taking into consideration the effect of the standard on rates, reliability, and financial resources and the goal of environmental improvement. Investor Owned Utilities PUC Code 399.11(x) In order to attain a target of 20 percent renewable energy.for the State of California_ 399.15. (a) In order to fulfill unmet long-term resource needs, the commission shall establish a renewables portfolio standard requiring all electrical corporations to procure a minimum quantity of output from eligible renewable energy resources as a specified percentage of total kilowatthours sold to their retail end-use customers each calendar year, if sufficient funds are made available pursuant to paragraph (21, and Sections 399.6 and 383.5 to cover the above -market costs of eligible renewables, and subject to all of the following:. The language in the current law that applies to investor owned utilities limits the procurement to unmet resource needs and to the amount that can be procured without raising current rates. AB 3005 has neither limitation for publicly owned utilities. The investor owned utilities and those seeking to enhance the sales of specific technologies have grossly misrepresented the renewable accomplishments of publicly owned utilities. For instance the City of Alameda is currently 80% renewable, the City of Healdsburg is 801/6 . renewable, the City of Santa Clara is 65% renewable; the City of Shasta Lake is 35% renewable, the City of Ukiah is 75% renewable and the Trinity Public Utility District is 100% renewable. None of the investor owned utilities can match those numbers. California's publicly owned utilities are currently developing substantial new renewable sources. According to presentation made to the Joint Agency Steering Committee, the IOUs are procuring slightly in excess of 600 megawatts of new renewable resources. Currently the Southern California Public Power Authority members are developing 402 megawatts of new renewable capacity, the Northern California Agency Members are developing 103 megawatts of new renewable capacity, SMUD is developing 156 megawatts of new renewable capacity and the Modesto Irrigation District is developing 25 megawatts of new renewable capacity. All together publicly owned utilities which are approximately 30% of 051 The Honorable Ronald S. Calderon March 9, 2004 Page 3 the load are developing 686 megawatts of capacity. The attached is a filing we made to the Joint Agency Steering Committee outlining the renewable activities of CalifomWs publicly owned utilities. We do not believe AB 3005 is necessary or good public policy. The states' publicly owned electric utilities, governed by local elected officials, are doing a far superior job of managing their resource portfolios than are the state's IOUs who are governed by the California Public Utilities Commission. We would be happy to discuss our position with you at your convenience. Executive Director miciml Utilities Association Enc. (1) 052 Azusa Utility Board Meeting March 22, 2004 AZUSA IGMT 6..1Ef AZUSA 053 Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update 054 11 Status of Projects • Resource Planning • Issued a request for proposal (RFP) for long term resources on March 1. • Received twelve proposals from four suppliers on March 10. ■ Continuing our evaluation at this time. Will make a recommendation by April Utility Board Meeting. ■ Procured two-thirds of resources needed in April in preparation of San Juan Unit #3 scheduled outage. ■ Participated in the CAISO Firm Transmission Rights auction process. However, not successful in procuring FTRs due to high auction prices. • Utilities' Financial Accounting • Preliminary power resource budget has been prepared and under review. • CAISO Market Redesign • Continued the monitoring of CAISO market redesign initiative. • Commenced preliminary work with SCPPA on a solar powered renewable project located in the City of Victorville as potential source of additional renewable energy for City's power resource portfolio 055 CITY OF AZUSA ENERGY CONSUMPTION COMPARISON NERGV WtJBUMPTION IN MWH MONTH FY 02-03 FY 03-011) PERCENT CHANGE ---------------- -k PAa.'. 23 576 1094% 440 _ 22502 26714_... __. 1872% .._. _.._. 389 344 SEP 23.047 l ... 24.354 _.... 587°,6 .. _..- OCT ....... pig___ _ :.__ 23.357 __.. . ......_ 15.12%._ 36.7 6. 59°% _ _ ...... NOV .. _18�19394 _. -- APR _._ DEC 18.789 20.207......_ 757°%.._.._. ........I JAN FEE 17294..__._- 'i. ...... 18.875 538%._... APR 16425_......_ MAY .. ..___ .._......... 20 071 _.. . JUN i_._.._— 20310 ._..___a TOTAL _ _ 241631 Newlughs haw been set for each Monthly r-tailsales .. CITY OF AZUSAPEAK DEMAND COMPAHISON._ --- -------- AKDEMANDNMW_ Surpassing all-time high for peak of 58.1 MW established on September 1. 1998 L 056 929%...__ OCT 440 53.2 ;_ 2098% ___ _ NOV a DEC 389 344 36 .9 '_ 35.1 5.31 ---- 222% { 385 514% _JAN ._ FEB 33,5 36.7 6. 59°% MAR 402 _. APR 39.0-- AKDEMANDNMW_ Surpassing all-time high for peak of 58.1 MW established on September 1. 1998 L 056 6 mm WHOLESALE ELECTRICITY SPOT MARKET PRICES IN C ALIFORNII - AVERAGE AVERAGE FEB 03 $54.02 $42. I 057 $30.40 MAY 03 _. 7$44.49 $21 - .4 - 4 ----- JUN 03 $50 59 $27.39 _ -0 3 1 _$51.02._...... $43.9 $33.75 ___SEP OCT -6 _�45.1 7 s3o.�i NOV 03 $36.0 $936 DEC 03 $43.77 $3336 JAN 04 $46.21 04A3 FEB 04 $42.75 $36.66 I 057 058 Power Resource Cost Accounting FY'03-'04 L 4—NET LONGTERM SHORT TERM TRlNISA95610N M1C4VAY SCHEDULING _- TO1K _ WHOIEGPLE — r MOHIH CONTRPLTS f PURCHASES COSTS SERNCE COSTS DISPATCHING COSTS COSTS REVENUES COSTS JUL03w 82399174 1,]89298921 281.84896 21102]2 3398640 2,929,81154 (1553$4890) 1,3]8268bd --PLG 03 —98195411----l,dfi188139 _ 3629]36 27]49339] 11,401 ,101 08) tAfi),128.11 L P �O3 �M.62129]64.015.44 26]20].82 11,808.80 33213.05 2A589S42B (051.92]251 1206,]3].83 OCT03 - 9]3.40896 12fi5,543.31 263.015.15 1381].15 31527.64 2.54].4122] (1A3).M9.83) 1.509702.44 NCV 031q 182]99498'; 678688.91 218,5fi0A2 10988.60 24,481.6,1 B58,312 53 (633845.77) 2224,368)6 DEC 031 969,95996; 1.834,406.89 219.824.68 13A]I.81 25,32191 2262AMAB (81].155.46) 1,445.72972 JN404 8]201896 806,80018 210.81312 20.80000 24 BBD 08 2.834 11294 (830.17450) 120383]20 FE8"M 96791896 54581730 53140223 2000000 .. _.. 2480015 2,09011884 .. _. (69126900) 1,39&_8084 .._ —. 0.00 000 AP004 NVY01U.00 JUN DO _—_ .� — v �_ 0.00 000 TQlOL 38207.05684, 88,345A5020 I $224495090 1 812740855 — 5234,488.16 I 819556,15475 (57223,43857) $11.732,716.18 (w_ Por Pie monm b860u „ (B) PorPlBmoatlldO b.1200&Se Ju nUnIIR3Repl ment Cosltl Wu Iloula9eameun44826850718 .. (C) FO Pie monm of NolemUer2003.SCPPASan Juan annual We -up coa61s 5960.315.[ ____ (0 Far Ne monM of Oecem0ar 2003, ben Juan UNl R3 fleplacemeM Coat duebunll ouN9e emoVnre b5341 A99.B1 (E) One-tlme reNnE to the CP50 maRatiortln ote�IleMeC Pansmissbn revenue requirement jiRR)Opdrq January Nrou9H 04Mber2003 er TRR seWemen[a9reament in eemountof$ 0 89.11.-- _—. 1 INCLUOE58CPPALONGTERMCCNi RJGTS �^ (2) (3)r INCLUDES ALLSHORTTERMPURCHASESF HEDGINGMl)LOPD BALNJCI RPOSES _ INCLUDESPLLSHORTTERMPNDLONGTRPRSM IONCCNTRO COST6 _ _ — (4) COSTS CM<AGED BYCPLIFOHNIAINDEPENDENTSYSTEMOPERATOfl WR SYSTEMRELVGIL1iYR1NCTgNS _J --_ _— -. (51 INCLUDES COSTSF SCHEOULINGAND DISPATCHING OF ELECi_PICRV (b). SUM OF(I)T RW CIA $S ()) VMWPLE REVENUES DERIVED FROM SltES OF EXCESS POVIER PFOBENEFR"a ES — 13)- DIFFEPENCE CP(6) PND (7).- ... ._. _... __ 058 USA. e word INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL ��/ FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES" \ {� DATE: MARCH 22, 2004 SUBJECT: FY 2003-04 2"D QUARTER WORK PLAN UPDATES FROM WATER DIVISION RECOMMENDATION It is recommended that the Azusa Utility Board/City Council receive the attached work plan updates from the Water Division for review and comment. BACKGROUND On February 23, 2004, staff from different divisions of Azusa Light & Water, except the Water Division, submitted work plan updates for the 2"D quarter of fiscal year 2003-04 to the Board. Water Division's updates are completed and submitted herein for review. 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: Steven Yang, Administrative Technician Attachment: W P N FY03-04 2nd Qtr-Watendoc 059 Azusa Light & Water Water Division Work Plan Updates Report FY2003-04 2"a Quarter (10/1/03 —12/31/03) Table of Contents [Water Operation ........................................................................................................................................................ 1 12 -inch crossing Dalton Wash................................................................................................................................. 1 12 -inch pipeline in 6th St. - Virginia to Cerritos Ave........................................................................................... 1 16 -inch pipeline in Baseline from Rockvale to Citrus........................................................................................... 1 IMG Mountain Cove Reservoir.............................................................................................................................. 1 20 -inch and 16 -inch pipeline for Mountain........................................................................................................... 2 20 -inch pipe installation- Lakeview Terrace to 10th St and Rockvale Boosters ................................................ 2 30 -inch pipeline in Dalton from Sierra Madre to 5th........................................................................................... 2 DistributionMain Upgrades................................................................................................................................... 2 Installradio controls for SCADA........................................................................................................................... 3 Ph1 Heck Booster Pump Station............................................................................................................................ 3 Pipeline from Citrus & Foothill to Barranca & Alosta...................................... :................................................. 3 Rehabilitation of South Reservoir.......................................................................................................................... 3 Repairsto Sierra Madre Reservoir........................................................................................................................ 3 Rockvalebooster upgrade....................................................................................................................................... 4 Spreadingground wells........................................................................................................................................... 4 Treatment plant sed basin and sludge lagoon design and construction.............................................................. 4 Well2 & 3 discharge upgrade................................................................................................................................. 4 =1+1 Division: ater O eration Work Name: 12 -inch crossing Dalton Wash Description: 12 -inch waterline crossing Big Dalton Wash. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Engineered Plumbing onsite. Project will be completed 3rd quarter. Work Name: 12 -inch pipeline in 6th St. - Virginia to Cerritos Ave. Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project on hold. Work Name: 16 -inch pipeline in Baseline from Rockvale to Citrus Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project on hold. Work Name: 1MG Mountain Cove Reservoir Description: Installation of a reservoir at the Mountain Cove development. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Complete. 1 061 i 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 Description: Station to the new Reservoir at Mountain Cove. Work Type: Project Team Leader: Chet Anderson Team Member: Chet Anderson Quarter Ending Update: Project completed. Work Name: 20 -inch pipe installation- Lakeview Terrace to 10th St and Description: Rockvale Boosters Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Team Leader: Update. Work Type: Project ' Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project delayed. A route will be discussed with Monrovia Nursery in March. Work Name: 30 -inch pipeline in Dalton from Sierra Madre to 5th Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project on hold. Work Name: Distribution Main Upgrades Description: Replacement of water mains in the distribution system. Rollover from 2002. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Foothill & Batranca pipeline underway. Will be completed in 3rd quarter. 2 062 H 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 Member: Quarter Ending Update: Contractor continues with SCADA upgrades. 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 Member: Quarter Ending Update: Project completed. 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 Member: Quarter Ending Update: Pipeline not done. Will be completed 3rd quarter. 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 torn down and replaced. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: RFP's not yet issued. Work Name: Repairs to Sierra Madre Reservoir Description: Sierra Madre Reservoir is in need of repairs to the inside and outside of the reservoir. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Diver has inspected reservoir. Recommendations are relatively minor. Annual monitoring will continue. 3 063 Work Name: Rockvale booster upgrade Description: Installation of new pump and piping to enhance the performance of the Rockvale Work Name: boosters. Work Type: Project Team Leader: Chet Anderson Team Member: Well 2 & 3 discharge upgrade Quarter Ending Update: Project continues on hold pending completion of APU and Monrovia Nursery water system master plans. Work Name: Spreading ground wells Description: Installation of two wells in partnership with the County to enhance the County's Treatment plant sed basin and sludge lagoon design and construction to enhance the ability to sluice the accumulated debris from Morris and San Gabriel Dams. Work Type: Project Team Leader: Chet Anderson Team Member: Well 2 & 3 discharge upgrade Quarter Ending Update: California American has agreed to head the Pipeline B project to finally complete this project. Work Name: Treatment plant sed basin and sludge lagoon design and construction Description: Treatment plant sed basin and sludge lagoon design and construction to enhance the performance of the water treatment plant. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Pilot plant project is progressing nicely and is producing significant data. Will be complete by the end of 3rd quarter. 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 Member: Quarter Ending Update: Upgrades not yet started. Wells 11 and 12 required pulling and redeveloping, taking up time and space in the wellfield. 4 Kirkwall Substation Project Monthly Status Report March 22, 2004 065 1160 W. Gladstone Street, Azusa, CA ....... Before. ..... and ..... .... After 2 066 Engineering & Construction Update Black & Veatch Construction Inc. (BVCI) will remobilize from March 22 to April 9 in order to complete remaining work inside Edison's switchyard area. Work includes pulling high voltage 66kV underground cables from Edison's switchyard and connect to Azusa s transformers. Also, testing of Azusa's substation equipment will be performed in preparation for energizing main switchgear. Field personnel will be given a short training on the safe operation of new station equipment including a practice run on the switching procedure to test and energize newly installed electrical equipment. Edison's linemen installed 2 sets of 66kV overhead transmission line along Gladstone Street between Kirkwall Substation and Azusa Avenue. Also completed the installation of 4 circuit breakers and metering equipment at Edison's switchyard. Testing of Edison's switchyard equipment will be performed during the week of March 22nd in preparation for energizing substation on April 2004 operating date. Relocate and installed underground existing 12kV overhead power line in front of substation except the remainder 66kV transmission lines and right of way. ■ Coordinated and finalized with Edison the switching program to energize and test Kirkwall Substation and prepare for test load pickup by first week of April. ■ Started making arrangements for simple project dedication to be held in mid-April, before final commissioning of completed substation project. 3 067 Contract Negotiation Update ■ Continue to negotiate the filing of Kirkwall Substation interconnection agreements. Edison is anticipated to file the unexecuted agreements by the week of March 22nd • Continue to coordinate with Edison and the California Independent System Operator (CAISO) on metering issues. We anticipate to finalize the interim metering arrangements by the in- service date of Kirkwall. .; 5 0 6 :� Funds and Expenditures Update SUMMARY KIRKWALL S( TATYNFUND 56:16 B SERA C CATLWFiY TAX470.0Wf TAXABLE Bplp RiOC.`EFSS E5AT0,000 $6.525.000 CEBT 59 RFS 0 -556.8562 RBFONEF TB 45.923 $ TOTAL LILIWNOQ -5186,.859080 BOIY.`G AFTMR ISBUAN WSTS 54.622.214 TOTAL DRAWCOW -53.380.042 55,665.802 -55.6281035 AVAILABLE BONG iSAG1— S1,342.162 546.666 KI ALL SU TAT%NTOTAL G T 'hI COT (A) BLAU< & V EATC 3CE NAVIGAM LA NOAOQ h T*N TOTAL (A) OONTRACT AMO $9.200 y10,000 54,400 $620.000 $773.800 BILLING % OF CON ACT AMOU TO DATE $9.200 100.00 % $40,000 100.00% 54.400 100.00% $620.000 100.0 A $7!3.600 100.00% bKGOING COST (B) BLAO &VEATCH SCE F1=TE & 30N5 INC 53,086,000 55,626.000 5481.450 $2596.826 84.15% 55.626.000 100.00% 5481.450 100.00% TOTAL (BI E9,1T3.450 $8.68.266 94.66% DOST (A) ♦ (B) E9.94T.050 $9.456.BT6 95.08% UTILITY INCURR6J COST ( C) WA $35.8T2 WA TOTAL CAST (A) . (B) (C) $9,493,646 5 0 6 :� INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MARCH 22, 2004 SUBJECT: 2004 NATIONAL CONFERENCE OF AMERICAN PUBLIC POWER ASSOCIATION Attached information provided for your review and consideration. If interested in this conference, please contact Steven Yang at 812-5283. Attachments: 2 APPA National Conf. 2004-1.pdf Prepared by: 9 APPA National Conf. 20042. pdf Cary Kalscheuer, Assistant to the Director of Utilities 070 2004 APPA National Conference AVeA American Public Power Atsodalioa COME Calendar • 2004 • 2005 • 2006 Education Courses • Inhouse Training • Accreditation and Continuing Education • e -Learning fags links site map contact us Page 1 of 2 2004 National Conference Seattle Convention Center Seattle, Washington • June 19-23, 2004 APPA National Conference Schedule Contact: Paulette Kum at 2021467-2941 Saturday. June 19 7:30 a.m. ilExecutive Committee Meeting 8:30 a.m. - 4 p.m. Preconference Seminars 9 a.m. APPA Board of Directors Meeting 3 p.m. j Advisory Committee Meeting Rundav Jing 9n 8:30 a.m. - Noon Pre -conference Seminars 2 P.M. Legislative and Resolutions Committee Meeting 4 p.m. Conference Orientation PowerPAC Board Meeting 6 - 8 P.M. JFWelcoming Reception Mnndav .lune 21 7 a.m. jjPowerPAC Breakfast 8:30 - 10:30 a.m. First General Session 11 a.m. -Noon Concurrent Sessions 1:30 - 2:30 p.m. Discussion Forums 3 - 4:00 p.m. Discussion Forums 4 - 4:45 p.m. Membership Committee Meeting 4:30 - 6:30 p.m. Public Power Expo Opening Reception Tncerlav June 99 7 a.m. Public Power Expo with Continental Breakfast 8 - 10:30 a.m. 11second General Session 10:30 - 11 a.m. Break: Public Power Expo Open 11 a.m. - NoonConcurrent Sessions Noon - 1:30 p.m JjPublic Power Expo Closing Luncheon 1:30 - 2:30 p. m.Discussion Forums -11 1 http://www.appanet.org/Meetings/Conference/agenda2004.cfm Conference Info • Conference • Conference • Conference • Saturday Se • Sunday Sem • Special Ever • Tours Conference Forms • �LConferen Form • Printable Form • Online Hotel • Tour Form it Plug into PI Public Power Expc • 2004 Exhibit • Expolnform; • 'RoorPlai • Space Cc Sponsorship • 2004 Sponsr • Participation 3/1/2004 071 I 2004 APPA National Conference 45-3:45 Page 2 of z • Y Sign-up F I L pm.I Business Meeting II 4:45 p.m. 2004-2005 Board of Directors Meeting 8 P.M. Concert: The Soulful Sounds of Peabo 8 a.m. Board Chair's Breakfast Presentation of Alex Radin Award Installation of 2004/2005 APPA Board Chair Keynote Address: Rushworth Kidder, President, Institute for Global Ethics 11 a.m. Conference Adjourned Future Conference Dates 2005 June 18-22 Anaheim, CA 2006 June 10-14 Chicago, IL Travel arrangements and costs are the responsibility of the partici APPA will not reimburse for changes in travel expenditures regardless of the c cancellation of a course, meeting or workshop. http://www.appanet.org/Meetings/Conference/agenda2004.cfrn 3/1/2004 072 2004 APPA National Conference �AMliftShAill A fags links American Public Poiver Association COME Calendar • 2004 • 2005 • 2006 Education Courses • Inhouse Trainin • Accreditation and Continuing Education • e -Learning Guest Speakers Page 1 of 2 `vi_TT'ti.la site map contact us 2004 National Conference Seattle Convention Center Seattle, Washington • June 19-23, 2004 Conference Highlights Contact: Paulette Kum at 202/467-2941 Linda Wertheimer As NPR's senior national correspondent, Linda Wertheimer travels the country and the globe for NPR News, bringing her unique insights and wealth of experience to bear on the day's top news stories. Before taking the senior national correspondent post, Wertheimer spent 13 years as a host of NPR's flagship news magazine, All Things Considered. Ms. Wertheimer will address conference attendees during Monday's general session giving an insider's perspective on the presidential campaign and how political trends will affect our business and our lives. Rushworth Kidder Only 17 percent of the public (says Gallup) thinks today's business executives have high standards of honesty and ethics -above car salesmen (6 percent) but below journalists (26 percent). Yet most executives say ethics is vital to good business leadership. Rushworth Kidder, author of How Good People Make Tough Choices: Resolving the Dilemmas of Ethical Living, and Shared Values for a Troubled World, offers conference attendees his view on leadership and ethics and how a focus on values maintains strong consensus about mission direction, and governance. Kidder has worked for over a decade through his Institute for Global Ethics to develop training programs for international corporations, non-profit foundations, government agencies, even prisons. Rushworth Kidder, President, Institute for Global Ethics, Camden, Maine will give the key note address at Wednesday's Chairman's Breakfast. Conference Themes There are a number of topics that woven through the conference agenda: These "Conference Themes" are based on the 2001 publication It's Your Future... Lead It! a report from APPA's task force on Public Power in the 21st Century. They include: • Customer Service • Power Supply Management • Distribution Efficiency • The Value of Public Power http://www.appanet.org/Meetings/Conference/highlights2004.cfm Conference Info • Conference • Conference • Conference • Saturday S • Sunday Se • Special EVi • Tours Conference Form • S^Confere Form • Printable Form • Online Hot( • Tour Form Plug into F Public Power Exp • 2004 Exhib • Expo Inforr • -Floor Pia • 7LSpace C Sponsorship • . 2004 Spon • Participatio 3/1/2004 073 V.- 2004 APPA National Conference • Community Broadband • Environmental Stewardship • Utility Governance and Leadership • Human Resources • Legislative Advocacy 2005 2006 Page 2 of 2 * A - Sign-up Sign-up Future Conference Dates June 18-22 Anaheim, CA June 10-14 Chicago, IL Travel arrangements and costs are the responsibility of the partici APPA will not reimburse for changes in travel expenditures regardless of the c cancellation of a course, meeting or workshop. -'vq:r "w 'fi-I http://www.appanet.org/Meetings/ConferencefMghlights2004.cfrn 3/l/2004 074