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HomeMy WebLinkAboutAgenda Packet - September 22, 2008 - UBAZUSALIGHT AGENDA I v 1 REGULAR MEETING OF. AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL VICTOR HODGE ELEMENTARY SCHOOL 700 W. 11TH STREET AZUSA, CA 91702 URIEL E. MACIAS VICE CHAIRPERSON KEITH HANKS BOARD MEMBER 6:30 P.M. Convene to A. • Call to Order • Pledge to the • Roll Call AZUSA UTILITY BOARD ANGELA. CARRILLO CHAIRPERSON September 22, 2( 6:30 P. BOARD MEMBER 1 KUD KI l 1JA1,AL BOARD MEMBER j s Meeting of the Azusa Utility Board 'and Azusa City Council (PersonlGroup shall be allowed to speak without interruption I p to five (5) minutes maximum time, subject to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker's questions or comments shall be handled after the speaker has completed his/her commem Public Participation will be limited to sixty (60) minutes time.) i I f1 B. CONSENT CALENDAR 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. Minutes. Recommendation: Approve minutes of regular meeting on July 28, 2008 as written. UB 7-08 Mm. pdf 2. Adopt Oppose Position on Proposition 7. Recommendation: Adopt an oppose position on Proposition 7, the Solar and Clean Energy Act of 2008, on November 4, 2008 general election ballot. Prop Ballotpedia.pdf 7-Rpt-0ppose.pdf 3. Additional Compensation to Ken Thompson Incorporated for Project W-243. Recommendation: Approve the addition of $158,317.05 for trench material required on Project W-243, Water Treatment Plant Water Mains and Sewer Force Main in Daybreak Drive and San Gabriel Canyon Road. BackfiA CO. pdf 4. Additional Uompensanon to Wren oL — apo ----•---- • ---- Recommendation: Approve the addition of $9,500 additional compensation to Wren & Associates for inspection services on Project W-245, Water Main Replacement in First Street, et.al. .m. Wren Amdnent. pdf Approval of Request for Proposals for Solid Waste Consultant Services. Recommendation: Authorize staff to solicit proposals from qualified solid waste and recycling consultants to analyze the City's contract with Athens Services and make recommendations pursuant to the study. ILI Solid Waste RFP. pdf MSW -RFP. pdf 002 6. Approval to Purchase Electric Meters. Recommendation: Approve the purchase of 96 electric me from McAvoy and Markham Sales Company in amount of $23,237.77. 1 Dec Meter Purch.pdf 1" 7. Approval to Purchase Electric Meter Test Equipment. Recommendation: Approve the purchas three phase Watthour Engineering Company (WECO) electric meter test equipment from McAvoy Markham Sales Company in amount of $45,325 to replace the existing test board. i t Meter Test Equip.pdf D1 Systems Corporation. Recommendation: Approve the following resolution: 1 A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF A2 ACCEPTING A CERTAIN GRANT AND REPLACEMENT OF EASEMENT AND DIRECTING RECORDATION THEREOF. i Milt Northrop_Esrmt. pdf Reso.pdf Esrmt Doc. pdf i C. SCHEDULED ITEM Conservation. Recommendation: Approve the following resolution: l A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA AMEND AZUSA LIGHT & WATER RULES AND REGULATIONS TO ADD RULE NO. REGARDING WATER CONSERVATION. i Wtr Corm Rule. pdf WATER Rule No. 21. pdf of 21 003 D. 2. 3. 4. E. STAFF REPORTS/COMMUNICATIONS MonthlyUpdateon Water Treatment Plant WfP Update. pdf Power Resources Project Update IT Pwr Res Update. pdf Quarterly San Juan Fuel Cost Adjustment ,J San Juan FCA.pdf FCA-Fxhibit.pdf Sharps Disposal Prohibition Sharps.pdf SharpBrochure. pdf SharpMailer.pdf DIRECTOR'S ITEMS 1. Garnet Wind Project Ribbon Cutting Ceremony (Verbal) 2. October Greenhouse Gas Workshop -AB 32 (Verbal) 3. Request for proclamation for Sergeant Martin Salazar who is re -enlisting in the service, to be presented on October 4th. F. ADJOURNMENT 1. Adjournment. "In compliance with the Americans with Disabilities Act, ifyou need special assistance to participate in a city meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the meeting or time when special services are needed will assist staff in assuring that reasonable arrangements can be made to provide access to the meeting." "In compliance with Government Code Section 54957.5, agenda materials are available for inspection by members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard, Azusa City Library - 729 N. Dalton Avenue, Azusa Police Department Lobby - 725 N. Alameda, and Azusa Light & Water -729 N. Azusa Avenue, Azusa CA.," 4 AZUSA II4X1 l'BATI t CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL 1 MONDAY, JULY 28, 2008 — 6:32 P.M. 1 The Utility Board Members of the City of Azusa met in regular session, at the above date and time, at the Light and Water Conference Room, located at 729 N. Azusa Avenue, Azusa, California. a Chairman ca ed the meeting to order and Azusa Police Captain Street led in the salute to the Flag. ROLL CALL . PRESENT: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ALSO PRESENT: GONZALES, CARRILLO, MACIAS, HANKS ROCHA City Attorney Ferre, City Manager Delach, Director of Utilities Hsu, Director of Resource Management Tang, Assistant to the Utilities Director Kalscheuer, Assistant Director ofWater Operations Anderson, Azusa Police Captain Street, Assistant Director of Electric Operations Ramirez, City Clerk Mendoza, Deputy City Clerk Toscano. Call to Roll Call Also Present New Employee Introductions Intro New Employees Assistant Director of Electrical Operations Ramirez introduced new Electric Division Employees Vincent Benavides and Michael Moore. Director of Resource Management Tang introduced new Power Resource Technician Gerard Palo -Dy. 1 Public Participation Pub Part Mr. Art Morales addressed the Board Members requesting additional information regarding the Public A. Morales Benefits Program and how it can nbe used-for-freeswim------__ Comments An item of subsequent need arose regarding possible resolutions and a letter iq opposition to cert,,actions Item of taken by the Metropolitan Transit Authority and it was moved by Board Member Hanks, secondeddG Board Subsequent Member Gonzales and unanimously* carried to agendize it as item C-2. 1 �� need MTA The CONSENT CALENDAR consisting of Items B-1 through B-9, was approved by motion of Board Consent Cal Member Gonzales, seconded by Board Member Hanks and unanimously*carred with the exception items B- Approved 3 and B-4, which were considered under the Special Call portion of the Agenda. t Chairman Carrillo abstained B-3 & B-4 from item B 1, minutes as he was absent from that meeting, Spec Call N. 1. The Minutes of the regular meeting of June 23, 2008, were approved as written. Min Appvd 2. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Res. 08-C65 ACCEPTING A CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORD THEREOF. Grant Of Esmt (Citrus Crossing Properties Fee LLC for Electric Utilities) Citrus Cross 3. SPECIAL CALL ITEM. 4. SPECIAL CALL ITEM. Spec Call Spec Call 5. Approval was given for a one year extension of the Professional Services Agreement between the City of Agmt w/Wren Azusa and Wren & Associates for inspection of electric conduit & facility installations at the Rosedale & Assoc Development. - Rosedale Dev 6. Approval was given for an extension of Wren & Associates contract for Rosedale Project inspection from Rosedale June 30, 2008 -June 30, 2009; an extension of Civiltec Engineering contract for Rosedale Project Inspection Inspection from June 30, 2008 to June 30, 2009, and an addition of $33,000 to the Civiltec Engineering Wren & contract for Rosedale inspection Services. Civiltec 7. Approval was given for the advertisement for and solicitation of bids for Project W-245 A& B, Water Water Main Main Replacement in Vincent Avenue, West Covina and Sunset Avenue, Azusa, and delegate authority to Replacement the City Manager to approve the award of the contract for the main replacements to the lowest and W-245 A&B responsible bidder. Bids 8. Approval was given for Additional Compensation to Systems and Software for Implementation of Systems & Interactive Voice Recorder and Outbound Dialing in the amount of $26,000. Software 9. Approval was given for the Addendum to Option and Settlement Agreement insubstantial form, subject Addendum to approval of the final language by the legal counsel. Settlement agmt SPECIAL CALL ITEMS Special Call Director of Utilities Hsu addressed items B-3 and B4, detailing the extra cost to Project Manager Black & Dir of Utilities Veatch for Water Treatment Plant Upgrade and additional compensation to SSC Construction for additional Items B-3 & 4 work and time extension stating that there were items beyond the original scope of the original estimates, i.e. Shop drawing submittal review, Contractor Requests for Information (RFI's), Resident Engineer Additional Time, Additional coordination with Local Agency, Building Permits and costs for annexation to Sanitation District. He noted that the project is 82% complete and there have been less than 1% change orders from construction contractors. Moved by Chairman Carrillo, seconded by Board Member Hanks and unanimously* carried to approve the Black & addition of $326,800 to pay for additional and anticipated consulting services by Black & Veatch (B&V) Veatch Corporation for providing construction management engineering services for Canyon Membrane Water , Additional Treatment Plant (WTP) Upgrade and Expansion Project, Project WVF-207. Comp Moved by Chairman Carrillo, seconded by Board Member Hanks and unanimously* carried to approve SSC Constru Change Order No. 1 I for the addition of $9,454.31 and extension of time to complete 24 calendar days to the Change Order SSC Construction, Incorporated contract for construction of Project WVF-207, Canyon Membrane Water 11 Treatment Plant (WTP) Upgrade and Expansion. 07/28/08 PAGE TWO Me] SCHEDULEDITEMS Sched Items Director of Utilities Hsu addressed item regarding the Utilities Department Res I rve Policies stating that this is Dir of L an estimate as the official audit has not been performed, and that these are the utilities reserve policies which Reserve provide for reserves for specific utilities financial requirements such as Operating Reserves, Capital Reserve, Policies and Contingency Reserve for the Electric and Water Utilities. j Board Member Gonzales offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA', CALIFORNIA, SETTING CERTAIN RESERVE POLICIES FOR THE UTILITIES DEPARTMENT. 1 Moved by Board Member Gonzales, seconded by Chairman Carrillo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: ROCHA Lengthy discussion was held between Board Members, City Attorney Ferre and City Manager Delach regarding the proposed resolution condemning the recent action of the MTA in not funding the necessary local match for the Gold Line Foothill Extension; a resolution calling on State Legislature to authorize seeking Federal funding of $214 Million for the Congestion Pricing project of the I-110 corridor, and to require that the MTA also fund the local match for Gold Line, enabling the pursuit of additional $320 Million for the benefit of the State and a letter to Assemblyman Hernandez and other Assembly members regarding status of the Gold Line, the MTA putting a half cent sales tax on the November ballot, and a new version of the HOT lane on the I-110 freeway. (A third resolution was noted, but a consensus of the Board Members were opposed to considering it, it was regarding sustaining the Resolutions adopted by COG, JPA, Gold Line Construction Authority opposing the Sales Tax unless amended to fully fund the Gold Line, and set a definite spending schedule for the project.) , It was consensus ofthe Board Members that staffbe directed to draft resolutions addressing subject as detailed above and be brought to the City Council meeting of August 4, 2008, for consideration and that a letter regarding the Gold Line be created articulating and addressing the inequities of the current programs and be sent to Assemblyman Hernandez and the Assembly; and after completion, if there are Board Member concerns, that it be brought back to a meeting for re -consideration. 1 STAFF REPORTS/COMMUNICATIONS i 1 Director of Utilities Hsu stated that formulation of the drought charged based on following assumptions: (1) Water Shortage phase B will be in place for six months during the fiscal year-'( 2) July 2006 to December 2006 consumption data was used as the basis to determine the threshold which the drought charge is to be applied; (3) Customers will reduce consumption by 10% in response to declared water shortage program; (4) Certain exemptions to commercial customers will be granted to recognize conservation implemented activities; and (5) Drought Charge is to be imposed for all consumption above 200% of the first Tier of the respective customer's rates, e.g., above 36 hundred cubic feet (CCF) per month for residential customers with meter size I" or less. Res. 08-C66 Reserve Policies Lengthy Discussion Gold Line MTA Action Draft Resos Letter re: Gold Line Approved Staff Rpts Drought Charge Director of Utilities Hsu presented the Annual Adjustment of Replacement Water Cost Adjustment Factor Annual P stating that the Watermaster has set the Operating Safe Yield of the Main San Gabriel Basin (how much water RWCAF can be pumped from ground, after that replacement water is purchased), from $0.1306 to $0.0590 as of July 1, 2008, which is down due to lower water demand, water conservation and changes in the Watermaster application of rules governing replacement water purchases. . The Monthly Update on Water Treatment Plant was presented; it is 82.04% complete and $29.7 million has WTP Update been paid to date. 07/28/08 PAGE THREE 0 A Director of Utilities Hsu presented the Customer Survey Results conducted by SDS Research. Azusa Light and Water exceeds the industry averages in every category i.e. employee attitude, value of service received and Customer employee interaction and communication with customers; details of the survey results will be forwarded to Survey Results Board Members in August. Director of Utilities Hsu announced the Trash 101 Workshop to be held Friday, September 12, 2008 at Los Angeles County Sanitation Districts Administrative Office sponsored by the San Gabriel Valley Council of Workshop Governments; he asked that Board Members advise if they would like to attend. Trash 101 Director of Utilities Hsu announced the Upper San Gabriel Valley Water District Water Fest 2008 to be held on Saturday, October 4, 2008 at Arcadia County Park, and encouraged all to attend. Water Fest 2008 Director of Utilities Hsu announced that the County is releasing water from Morris Dam and the drought water basin behind the golf course has been rising about one foot per week and there is reserve water from San Release of Gabriel Municipal Water District. Water Director of Utilities Hsu announced that each Thursday beginning on July 31, 2008, there will be Concerts in the Park at 7 p.m. at Memorial Park. Concerts in the Park DIRECTOR'S COMMENTS Dir Cmts Moved by Board Member Gonzales, seconded by Board Member Macias and unanimously* carried that request for proclamation to Nicholas Ryan Hill for attaining the rank of Eagle Scout, to be presented at the Proc N. Hill Village Covenant Church on Saturday, August 16'", be approved. Eagle Scout Moved by Board Member Macias, seconded by Board Member Gonzales and unanimously* carried that request for Certificates of Recognition for Azusa Boxing Club, be approved. Cert to Azusa Boxing Club Moved by Chairman Carrillo, seconded by Board Member Gonzales and unanimously* carried that request for Certificate of Appreciation to outgoing President of the Azusa Chamber of Commerce, Mercedes Castro, of Cert to M. Proforma Quality Printing, to be presented at the Chamber Installation Dinner on Tuesday, July 29", be Castro C of C approved. - Outgoing Pres, Board Member comments regarding construction traffic at Gladstone and Vincent and workshop regarding the impacts of AB 32; it was suggested that the workshop not be held at an off-site meeting. Board Member Comments CLOSED SESSION ITEM Closed Sess It was consensus to recess to Closed Session at 8:13 p.m. to discuss the following: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Pursuant to Government Conf w/legal Code Section 54956.9(b), One potential case - Cnsl One Case The Board Members reconvened at 8:35.p.m., there was not reportable action taken in Closed Session; it was consensus of the Board Members to adjourn. Reconvened Adjourn TIME OF ADJOURNMENT: 8:36 P.M. SECRETARY NEXT RESOLUTION NO. 08-C67. * indicates Rocha absent. 07/28/08 PAGE FOUR Aft CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL 1 FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES �y DATE: SEPTEMBER 22, 2008 1 w SUBJECT: CALIFORNIA BALLOT INITIATIVE, PROPOSITION 7 —THE SOLAR AND CLEAN ENERGY ACT OF 2008, ON NOVEMBER 4, 2008 GENERAL ELECTION BALLOT t RECOMMENDATION i It is recommended that the Utility Board/City Council adopt an oppose position on Proposition 7, the Solar and Clean Energy Act of 2008, and authorize staff to advocate against this California Initiative on the November 4, 2008, General Election Ballot. 9 BACKGROUND The Solar and Clean Energy Act of 2008 is California Proposition 7 on the November 4, 2008, General Election Ballot. The measure qualified for the ballot through the initiative process and backers of this measure intended it to reduce greenhouse gas (GHG) emissions which are believed to be causing global warming. Proposition 7 seeks to reduce GHG by increasing renewable energy portfolio standards (RPS) on electric utilities, requiring electric utilities, including publicly owned utilities, to increase energy supplied from renewable sources to 40% by the year 2020, and to 50% by the year 2025. As you know ,'renewable sources include power from wind, solar, geothermal, biomass, and small hydro. Current law requires investor owned utilities to supply 20% of their power from renewable resources by 2010, and the Governor and Energy Commission have endorsed a 33% renewables requirement by the year 2020, and so Proposition 7 is a more aggressive "mandate" that includes penalties of I cent per kilowatt hour for noncompliance. Proposition 7 also places publicly owned utilities squarely under the regulatory authority of the Energy Commission for purposes of compliance with the RPS requirements. While the intention of Proposition 7 is good, the Proposition itself is very lengthy and detailed with respect to setting up a regulatory scheme which would most likely serve as a barrier to those trying to procure renewable resources. For instance, each retail seller of electricity would have to develop a procurement plan and have it approved by the Energy Commission, presumably Im before procuring renewable resources. The language of the Proposition is sometimes confusing and contradictory. For instance, in one place it says, "The Energy Commission shall not have any authority to approve or disapprove the terms, conditions or pricing of any renewable energy resources contract entered into by a local publicly owned electric utility..." But, in other parts the Proposition reads, "In soliciting and procuring. eligible renewable energy resources, each retail seller shall offer contracts of no less than 20 years in duration..." And, "The commission shall review the results of an eligible renewable energy resources solicitation submitted for approval by a retail seller and accept or reject proposed contracts with eligible energy resources based on consistency with approved renewable energy procurement plan. If the commission determines that the bid prices are elevated due to a lack of effective competition among the bidders, the commission shall direct retail seller to renegotiate the contracts or conduct a new solicitation." This mandatory procurement process is likely to act as a bottleneck for purchasing renewable resources and stymie competition once contracts are approved given the 20 year contract duration requirement. The Proposition also seems to be very unrealistic with respect to rate increases, penalty financing, and does not address costs associated with existing power generation assets. For example, the Proposition sets a cap of 3% on rate increases to pay for the increased cost of purchasing renewable resources. However, the cost of renewable power can range up to 100% more than the current cost per kilowatt hour and so the cap begs the question of how to pay for the increased cost of renewables given this limitation on rate adjustments. Secondly, a retail power provider would be penalized 1 cent per kilowatt hour multiplied by the number of kilowatt hours in shortfall of the RPS requirement. However, the Proposition goes on to say that "Penalties paid or transferred by any retail seller pursuant to this section shall not be recoverable by the retail seller either directly or indirectly in rates." This suggests that failure to comply with this mandate could lead to the City having to pay penalties out of the general fund, for instance. Third, the Proposition is silent on how. retailer sellers are to handle their existing power generation obligations and debt service on those investments currently paid by existing rates. In Azusa's case, we have a "take or pay" contract through Southern California Public Power Authority (SCPPA) for the purchase of power from a coal fired power plant through the year 2030 which supplies 65% of our power to customers. Even if we stopped using the facility, we would have to pay for our proportionate contracted share of power from this facility. These costs were not quantified by the Legislative Analyst's Office when they reviewed this ballot measure and were not put into the printed ballot by the Secretary of State, and so voters are not fully informed of these costs. Another concern with Proposition 7 is with respect to its impact on system reliability. While the Proposition funnels the penalty revenues into transmission infrastructure and renewable generation, the measure does not address the reality that significant additional energy infrastructure will be required to support the higher level of renewables enunciated in the Proposition prior to the effective dates of the renewables portfolio standards. Without electric transmission facilities and additional fast start/ramping generating resources to support the higher level of renewables, the introduction of renewable sources to the existing grid will create system instability and reliability issues. 010 The City of Azusa currently provides 7% of its power to customers from renewable resources, and by 2009 expects to be providing up to 20% of its power from renewable resources. If Proposition 7 passes, it will double the amount of renewables that must be purchased by our City by the year 2020, and will significantly increase regulatory oversight of our electric utility. Adoption of Proposition 7 will also add significant financial risk to City taxpayers and financially burden rate payers with undisclosed costs for many years to come. Information is attached to this report from ballotpedia.org which provides additional information not covered in above. The actual text of the submitted Proposition is also attached for your reference. FISCAL IMPACT Adoption of an "oppose" position will not have a measurable fiscal impact, however, voter approval of Proposition 7 will have a significant long-term reliability and fiscal repercussions on the City and its Electric utility. I Prepared by: ' Cary Kalscheuer, Assistant to the Director of Utilities Bob Tang, Assistant Director — Resource Management 9%L mm Ballotpedia Write Prop 7 - Fu0 Text. pdf up.pdf Oil Cal ifomia Proposition 7 (2008) - Ballotpedia 3alifornia Proposition 7 (2008) 'rom Ballotpedia ump to: navigation, search ,alifornia Proposition 7, would, if pproved, require California utilities to rocure half of their power from renewable asources by 2025. In order to make that ,oal, levels of production of solar, wind and ,ther renewable energy resources will more Zan quadruple from their current output of 0.9%. 21 It will also require California tilities to increase their purchase of lectricity generated from renewable esources by 2% annually to meet tenewable Portfolio Standard (RPS)121 equirements of 40% in 2020 and 50% in .025. Current law AB32 requires an RPS of ;0% by 2010. 'he 42 page measure is an initiated state tatute that has qualified for the November Contents hide] . 1 Provisions in the initiative o 1.1 Estimated fiscal impact • 2 Supporters o 2.1 Donors who support Prop. 7 • 3 The opposition campaign 0 3.1 Arguments made against Prop. 7 o 3.2 Donors who oppose Prop. 7 0 3.3 Campaign consultants • 4 Polling information • 5 Lawsuits over ballot language • 6 External links • 7 References • 8 Additional reading :008 ballot in California.0 The petition [rive to qualify the measure for the ballot was conducted by Progressive Campaigns, Inc. at a cost of 1.367 million. 'erhaps to distinguish it from Proposition 10, which also is about alternative fuels, some California lundits are starting to refer to Prop. 7 as Big Solar and Prop. 10 as Big Wind. Drovisions in the initiative • All electric utilities (including municipally -owned utilities) will be required to provide half of their electricity from solar and clean energy facilities by 2025. This requirement doubles what utilities will be required to do by 2025 under the Renewable Portfolio Standard. That law requires the state's energy mix to be 20 percent renewable by 2010. California utilities are currently at a mix of 10.9% renewable. • The California Energy Commission will be required to identify solar and clean energy zones, 012 http://ballotpedia.org/wikilindex.php/Califomia_Proposition_7_(2008) (I of 9)8/25/2008 9:38:35 AM California Proposition 7 (2008) - Ballotpedia primarily in the desert, to jump-start clean power plants.! • Renewable plant construction permits would be fast -tracked for approval by the California Energy Commission once all environmental reviews are'in place. Fast -tracking would limit the 1 period for local comments and participation to 100 days.' • Penalties levied on utilities for specific acts of non-compliance would be reduced from 5% to 1%, but the total cap on fines that can be imposed on a utility would be eliminated thus effectively increasing the total incurred financial penalties. • The California Energy Commission (CEC) will have the authority and responsibility to allocate funds from these penalties into the construction and implementation of new and existing transmission lines to provide access for renewable energy to the grid. . Utilities will be prohibited from passing along penalties to their electric rate -payers. • Caps price impacts on consumer's electricity bills at less than 3 percent. However, the non- partisan California Legislative Analyst's Office states that "the measure includes no specific provisions to implement or enforce this declaration". • Renewable energy sources will be defined and recognized as solar thermal, photovoltaic, wind, geothermal, small hydro, biomass, and tidal. • Utilities entering into contracts with alternative fuel providers will be required to sign 20 -year contracts. i Estimated fiscal impact i The California Legislative Analyst's Office, the nonpartisan state agency charged with providing a neutral estimate about the fiscal impact on the state of ballot initiatives and state legislative bills, has arrived at the following summary of Prop. 7's estimated costs: ! I • State administrative costs of up to $3.4 million annually for the regulatory activities of the Energy Resources Conservation and Development Commission and the California Public Utilities Commission, paid for by fee revenues. The total cost to taxpayers of Proposition 7, using 2007-2008 state budget for comparison, would be 0.00002% of the state budget. ;• Potential, unknown increased costs and reduced revenue, particularly in the short term, to state and local governments resulting from the measure's potential to increase retail electricity rates, with possible offsetting cost savings and revenue increases, to an unknown degree, over the long term to the extent the measure hastens renewable energy development. i Supporters e The official committee supporting Prop 7 is called Californians for Solar and Clean Energy. I 1 The primary financial backer of the initiative is Peter Sperling. Peter Sperling has been a member of the board of directors of the Apollo group since 1997, but has been part of the Apollo group since 1983. http:%/ballotpedis.orBJwikVindex.php/Califomia_Proposi[ion_7_(2008) (2 of 9)8/25/2008 9:38:35 AM 013 California Proposition 7 (2008) - Ballotpedia :perling was involved with the effort to protect the Santa Barbara grasslands in the city of Goleta, )cated on Elwood Mesa. im Gonzalez, a former San Francisco supervisor, is the initiative's chief spokesperson. Gonzalez says of 'rop. 7, "It's OK to pat yourself on the back for buying a twisty bulb or hybrid car, but wouldn't it be ,etter to go out and vote for something that's going to reduce tons of emissions?"'O dotable supporters of Proposition 7 include: • Progressive Democrats of America - Monterey County • Alicia Wang - Vice Chair, California Democratic Party* • John L. Burton - Past President pro Tem California State Senate, and former Chair, California Democratic Party. • Neil Eisenberg - Chairman of the Board, The Oceanic Society* • James Gollin - Chair, Board of Directors, Rainforest Action Network • Senator Martha Escutia (ret.) - Former Chair of the State Senate Energy Committee • Randall Hayes - environmental activist • Dolore's Huerta - Co -Founder of the United Farmworkers Union* • Gordon Roddick - Environmental Activist and Co -Founder, The Body Shop* • Christine Pelosi - Former Executive Director, California Democratic Party )onors who support Prop. 7 is of July 15, two donors have contributed $5,000 or more to support Prop. 7. They are: • Peter Sperling. $3,000,000. • Jim Gonzalez & Associates. $100,000.r7l rhe opposition campaign 'he formal group opposing Prop. 7 is called Californians Against Another Costly Energy Scheme. 'he coalition includes the California Democratic Party, the California Republican Party, the California ,abor Federation, the California Taxpayers' Association, the League of California Cities and the ;alifornia Solar Energy Industries Association. A separate coalition of environmental organizations has ,een formed, including the California League of Conservation Voters, the Natural Resources Defense ,ouncil, the Union of Concerned Scientists, the Environmental Defense Fund, and the Center for Energy ?fficiency and Renewable Technologies. lee also: List of Proposition 7 opponents. http://ballotpedia.org/wiki/index.php/Califomia_Proposition_7_(2008) (3 of 9)8/25/2008 9:38:35 AM 014 California Proposition 7 (2008) - Ballotpedia Arguments made against Prop. 7 Arguments that have been made against Proposition 7 include: • It could "slam the brakes on renewable energy development in the state." L81 • The measure is "poorly written and so complicated that it could hurt the cause of renewable 1 energy in the state."u • Ralph Cavanaugh of the Natural Resources Defense Council told the Los Angeles Times that the "initiative was put together by people who didn't know what they were doing." As a result, he says, it "opens the way for many unintended consequences".fD • V. John White, Director, Center for Energy Efficiency and Renewable Technologies told the Los Angeles Times that "the initiative locks all the dysfunctional complexity into place and would require a two-thirds vote of the Legislature to change it. 9L • "It freezes up transmission, because it's not clear who has the authority to site what," said Jan Smutny-Jones, Executive Director, Independent Energy Producers Association in Greenwire. "It would automatically lead us to litigation." Donors who oppose Prop. 7 ! As of August 2, three donors are listed as having given $5,000 or more to defeat this initiative. They are: I • PG&E, $12,895,250. • Edison, $10,720,250. '• Sempra, $104,000.[",u,[121 Campaign consultants The opposition coalition as of July 14, 2008 had paid about $175,000 to the campaign consulting firm of Townsend, Raimundo, Besler & Usher. f 131 Polling information A poll released on July 22, 2008 by Field Poll showed Proposition 7 with 63% support and 24% opposition. 82% of those surveyed had no initial awareness of Proposition 7. L41 015 http://ballotpedia.org/wiki/index.php/Califomia_Proposition_7_(2008) (4 of 9)8/25/2008 9:38:35 AM I California Proposition 7 (2008) - Ballotpedia July 200863 24 13 percent percent percent _awsuits over ballot language upporters and opponents of Proposition 7 filed lawsuits in Sacramento Superior Court regarding the cording of ballot arguments that voters will see in the official voter's guide. Utimately, Sacramento superior Court Judge Michael Kenny upheld both proponents and opponents arguments, essentially uling both arguments were correct. 'he lawsuit filed by proponents of Prop. 7 claimed that the opposition's ballot arguments contained false or misleading statements" that should be deleted. However, Sacramento Superior County Judge nichael •Kenny ultimately upheld opponents arguments that the measure contains language that could but small wind, solar and other renewable energy companies out of California's market. 'he lawsuit filed by opponents of Prop. 7 argued that Proposition 7 would have "serious, negative Inintended consequences" that are not adequately captured in the voter's guide. They particularly wanted . judge to delete three statements in the voter's guide, including statements by proponents that: • Prop 7 will help create over 370,000 new prevailing wage jobs • Prop 7 prohibits the utilities from passing on their penalty costs to consumers if they fail to meet renewable energy standards • Prop 7 is guaranteed to never add more than 3% per year to consumer electricity bills. ;peaking for opponents, Sue Kateley, Executive Director of the California Solar Energy Industries kssociation, said, "After carefully reviewing the facts and both sides' extensive legal filings, the judge Ipheld our argument that Proposition 7 contains language that could devastate small renewable energy Iroviders in California and force them out of the market. Prop. 7 would exclude renewable power acilities smaller than 30 megawatts from counting toward the measure's new requirements. This would ikely drive California's small solar, wind and renewable power providers out of business, eliminating a najor source of clean energy and thousands of jobs." ;peaking for proponents, Jim Gonzalez, former San Francisco County Supervisor, said, "We applaud the 'ourt's decision upholding the Yes on 7 ballot arguments without any changes. This will make clear that 'rop. 7 is about fighting global warming and achieving energy independence. The Court's decision Jarifies the real choices for solar and clean energy facing California voters on November 4th."' External links • Solar and Clean Energy, website of supporters. http://ballotpedia.org/wiki/index.php/Califomia_Proposition_7_(2008) (5 of 9)8/25/2008 9:38:35 AM 016 California Proposition 7 (2008) - Ballotpedia • No on Prop 7, website of opponents. • Solar & Clean Energy Initiative campaign committee Details of income and expenditures • Text of initiative 1 ,• Arguments in favor of 7, proposed for official ballot book. ;• Arguments against 7, proposed for official ballot book. . CalifomiaPropositions.org Prop 7 information page References 1. T California Distributed Energy Resources Guide 2. T Renewable Portfolio Standard 3. T Sacramento Bee: "Renewable power initiative poised for ballot, draws fire, April 8, 2008 4. T Campaign expenditure details 5 T 505.1 5_2 Sacramento News & Review, "California ballot: Betting on Big Solar" July 3 2008 6. T Titles for identification purposes only. 7. T Donors to Prop. 7 8. T Los Angeles Times, "Opponents say California power initiative is ill-advised", April 8, 2008 9.0 9.1 9.2 1 9. T — San Francisco Chronicle, "Surprise opponents to renewable energy measure" July 5, 2008 1 10. T "RENEWABLE ENERGY: Utilities earmark big bucks to stop Calif. ballot measure," Greenwire, June 19, 2008 t 11. T List of large donors opposing Prop 7 12. T Money talks loudly in Prop 7 contest 13. T Anti -7 expenditures 14. T July 22 Field Poll results on Proposition 7 15. T Ballot language battle could be key for Prop. 7, August 6, 2008 16. T "Prop 7 Court ruling Press Release", August 7,2008 http://www.noprop7.com Additional reading • It ain't easy legislating green, Wall Street Journal, April 9, 2008 1 • California voters may toughen renewal targets, Reuters, April 8, 2008 • Energy Department Says Wind Energy Could Be Savior, San Francisco Chronicle, May 13, 2008 • Geothermal Markets are heating up Energy Current May 5, 2008 1 I http:(/6allotpedia.org/wikVindex.php/Califomia_Proposition_7_(2008) (6 of 9)8/25/2008 9:38:35 AM 017 1 California Proposition 7 (2008) - Ballotpedia .o connect to everything on Ballotpedia about California and its ballot—laws, history, statewide lallot measures, ballot access, and more, visit: '} +; s , z ': + ` 4. • Californiabalktmeasures (all); " CallfUrnla r _ • ;Statewide ballot measures (.2008) ; Li � ti 4> LIZ- '• California hub "' H L P . 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Content is available under GNU Free Documentation License 1.2. . Privacy policy . About Ballotpedia . Disclaimers http://ballotpedia.org/wikilindex.php/Califomia_Proposition_7_(2008) (9 of 9)8/25/2008 9:38:35 AM 020 i October 22, 2007 j VIA PERSONAL DELIVERY OT -.0066 j(mdt. #1 S go StM VP4 OCT 2 2 2007 INITIATIVE COORDINATOR ATTORNEY GENERAL'S OFFICE Office of the Attorney Gcneral I ATTN: Initiative Coordinator t 13001 Street 1 Sacramento, CA 95814 I Re: Amendment to Version 1 of The Solar and Clean Energy Act of 2008 Proposed Initiative Number 07-0066 Dear initiative Coordinator: Please find enclosed an amendment to the text of Version 1 of The Solar and Clean Energy Act of 2008 (the "Act"), Proposed Initiative Number 07-0066, previously submitted to your office for title and summary on October 5, 2007. The amendment'reflects and incorporates changes to the California Public Utilities Code and Public Resources Code made under the newly -enacted Senate Bill 1036 while maintaining the original purpose and intent of the Act. The amendment is submitted within 15 days of your office's receipt of the initial draft petition and thus, does not constitute a new measure. 1 Please contact my attorney, Randall W. Keen, if you have any questions. Mr, Keen can be reached at the law firm of Manatt, Phelps and Phillips, 11355 W. Olympic Boulevard, Los Angeles, California 90064, (310) 312-4000. 1 Tlalmk you. sincerely; rim Gonzalez' I 41168272.1 021 07-0066 Amdt. # S Version 1 (revised) This initiative measure is submitted to the people of California in accordance with the provisions of Section 8 of Article 11 of the Califomia Constitution. This initiative measure amends, repeals and adds sections to the Public Utilities Code and the Public Resources Code; therefore existing provisions proposed to be deleted are printed in qtrikeeut type and new provisions proposed to be added are printed in italic hpe to indicate that they are new. PROPOSED LAW THE SOLAR AND CLEAN ENERGY ACT OF 2008 SECTION is MLE This measure shall be known as "The Solar and Clean Energy Act of 2008." SEC 2. FINDINGS AND DECLARATIONS The people of California find and declare the following: A. Global warming and climate change is now a real crisis. With the polar ice caps continuing to melt, temperatures rising worldwide, increasing greenhouse gases, and dramatic climate changes occurring, we are quickly reaching the tipping point. California is facing a serious threat from rising sea levels, increased drought, and melting Sierra snowpack that feed our water supply. California needs solar and clean energy to attack the climate changes which threaten our state. B. California suffers from drought, air pollution, poor water quality, and many other environmental problems. Very little has been done because the special energy interests block change. Californians must take energy reform into their own hands. The alternative to dirty energy is solar and clean energy. C. California can provide the leadership needed to attack global warming and 022 i Version I (revised) climate change. t D. The Solar and Clean Energy Act will help reduce air pollution in California. P With this initiative, we can help clean up our air and build a healthier, cleaner environment for our children. E. Our traditional sources of power rely too much'on fossil fuels and foreign energy i that are getting more and more expensive and less reliable. This initiative will encourage investment in solar and clean energy sources that in the long -run are cheaper and are located here 1 in California, and in the short-term, California's investment in I solar and clean energy will result t in no more than a 3 percent increase in electric rates -- a small f price to pay for a healthier and cleaner environment. i F. The Solar and Clean Energy Act will put California on the path to energy I independence by requiring all electric utilities to produce 50percent of their electricity from clean energy sources like solar and wind by 2025. Right nowi over 22 percent of California's greenhouse gases comes from electricity generation but around 10 percent of California's 1 electricity comes from solar and clean energy sources, leaving Californians vulnerable to high i energy costs, to political instability in the Middle East, and to being held hostage by big oil companies. G. The Solar and Clean Energy Act encourages new technology to produce d electricity. Many people are familiar with the solar power that comes from panels that can be placed on rooftops, but there is dramatic new technology that allows solar energy to be generated i from concentrations of solar mirrors in the desert. These mirrors are so efficient that a large square array, eleven miles on aside, may be able to generate enough electricity to meet all of California's needs and at a lower cost than we are paying today. The desert could lead us to 2 1 t t 023 Version I (revised) energy independence. H. The current law says we are supposed to have 20 percent solar and clean energy but we are still at around 10 percent and even big government-owned utilities like those in Los Angeles and Sacramento lobbied successfully to exempt themselves from the law. The Solar and Clean Energy Act provides incentives, tough standards, and penalties for those who do not comply: I. The Solar and Clean Energy Act will benefit California's economy. Building facilities for solar and clean energy sources and transmission lines to transport that electricity will create good jobs that pay the prevailing wage. These jobs will bring new investments and new jobs to California and strengthen California's economy. J. Global warming and California's reliance on fossil fuels and foreign energy are a matter of statewide concern, as is the implementation of statewide standards for the sources of electricity production and the permitting of solar and clean energy plants and related transmission facilities. Accordingly, the People find that these matters are not municipal affairs, as that term is used in Section 5 of Article X1 of the California Constitution, but are instead matters of statewide concern. SEC 3. PURPOSE AND INTENT It is the intent of the people of California in enacting this measure to: A. Address global warming and climate change, and protect the endangered Sierra snowpack by reducing California's carbon -based greenhouse gas emissions; B. Tap proven technologies such as solar, geothermal, wind, biomass, and small hydroelectric to generate clean energy throughout California and meet renewable energy targets without raising taxes on any California taxpayer; C. Require all California utilities -- including government-owned utilities like the 024 Version I (revised) Los Angeles Department of Water and Power -- to procure electricity from solar and clean energy resources, in the following timeframes: 20 percent by 2010: 40 percent by 2020; and, 3. 50 percent by 2025; D. Fast-track all approvals for the development of solar and clean energy plants and t related transmission facilities while guaranteeing all environmental protections -- including the Desert Protection Act; E. Create production incentives for the development and construction of solar and clean energy plants and related transmission facilities; I F. Assess penalties upon all utilities that fail to meet renewable resource targets, and t prohibit these utilities from passing on these penalties to consumers; G. Permit long-term 20 year contracts for solar acid clean energy to assure marketability and financing of solar and clean energy plants; 1 1 11. Cap price impacts on consumers' electricity bills at less than 3 percent. Over the 1 long -tern, studies have shown that consumer electricity costs'will decline; 1. Grant the Public Utilities Commission the powers to enforce compliance of the renewables portfolio standard upon privately -owned utilities, Jassess penalties for non- compliance, and prohibit utilities from passing -on penalties to consumers; I J. Grant the California State Energy Resources Conservation and Development 1 Commission (the "Energy Commission") the powers to: I I. Enforce compliance of the renewables portfolio standard upon government-owned utilities, assess penalties to those utilities for non - 02 Version 1 (revised) compliance, and prohibit the utilities from passing -on penalties to consumers; 2. Adopt rules to fast-track all approvals for the development of solar and clean energy resources and plants while guaranteeing all environmental protections -- including the Desert Protection Act; 3. Allocate funds to purchase, sell, or lease real property, personal property or rights of way for the development and use of the property and rights of way for the generation and/or transmission of solar and clean energy, and to upgrade existing transmission lines; and, 4. Identify and designate Solar and Clean Energy Zones -- primarily in the desert. SEC 4. Section 387 of the Public Utilities Code is amended to read as follows: 387. (a) Each governhtg body of a local publicly owned electric utility, as defined in Section 9604, shall e fq3lemenfing emd eafervitig a implement the renewables portfolio standard as established and defined in tris article that reesgniies the intent of the lie n ' a ti ff r is b fates,standaFd on b (b) Each local publicly owned electric utility shall report, on an annual basis, to its customers and to the State Energy Resources Conservation and Development Commission, the following: (1) Expenditures of public goods funds collected pursuant to Section 385 for eligible renewable energy resource development. Reports shall contain a description of programs, expenditures, and expected or actual results. (2) The resource mix used to serve its customers by fuel type. Reports shall contain the R 026 i 1 contribution of each type of renewable energy resource with I that are eligible renewable energy resources as defined in I Version I (revised) separate categories for those fuels Section 399.12, es t—Haat the t . Electricity shall be reported as having been delivered to the local publicly owned electric utility from an eligible renewable energy resource when the electricity would qualify for compliance with the renewables portfolio standardif it we_, delk, red . .._"- (3) The utility's status in implementing a renewables portfolio standard pursuant to subdivision (a) and the utility's progress toward attaining the standard following implementation. I SEC 5. Section 399.25 of the Public Utilities Code is amended to read as follows: t 399.25 . 1 ;;>�s=-ve;:.+a-u efper$4ton-fitFnfertifiente�tether�ittg-theeenstrtaeten i 6e { (a) With respect to a tr+rnsni ' . .ien-(aa) any I transmission facilities deemed to be necessary by the Energy Commission to facilitate achievement of the reneivables portfolio standard established in Article 16 (commencing with Section 399.11) of the Public Utilities Code, the commission shall I take all feasible actions to ensure that the transmission rates established by the Federal Energy Regulatory Commission are t fully reflected in any retail rates established by the commission. These actions shall include, but i are not limited to: 9 9 (1) Making findings, where supported by an evidentiary record, that those transmission i facilities provide benefit to the transmission network and are necessary to facilitate the 027 Version I (revised) achievement of the renewables portfolio standard established in Article 16 (commencing with Section 399.11). (2) Directing the utility to which the generator will be interconnected, where the direction is not preempted by federal law, to seek the recovery through general transmission rates of the costs associated with the transmission facilities, (3) Asserting the positions described in paragraphs (1) and (2) to the Federal Energy Regulatory Commission in appropriate proceedings. (4) Allowing recovery in retail rates of any increase in transmission costs incurred by an eleetfieul -a retail seller resulting from the construction of the transmission facilities that are not approved for recovery in transmission rates by the Federal Energy Regulatory Commission after the commission determines that the costs were prudently incurred in accordance with subdivision (a) of Section 454. (e)(b) Notwithstanding subdivision (a), a retail seller shall not recover any costs paid through the Solar and Clear Fnergy Transmission Account to facilitate the construction of any transmission facilities. SEC 6. Section 399.11 of the Public Utilities Code is amended to read as follows: 399.11. The Legislature People finds and declares all of the following: (a) In order to attain a the targets of generating 20 percent of total retail sales of electricity in California from eligible renewable energy resources by December 31, 2010, 40 percent of total retail sales of electricity in California front eligible renewable energy resources by Decennber 31, 2020, and 50 percent of total retail sales of electricity in California from eligible renewable energy resources by December 31, 2025, and for the purposes of increasing the diversity, reliability, public health and environmental benefits of the energy mix to address global warming and climate change, and to protect the endangered Sierra .snoivpack, it is the , +; Version I (revised) t intent of the l;egmislawfe People that the commission and the State Energy Resources Conservation and Development Commission implement the California Renewables Portfolio Standard Program described in this article. i (b) Increasing California's reliance on eligible renewable energy resources may promote stable electricity prices, protect public health, improve environmental quality. stimulate sustainable economic development, create new employment opportunities, and reduce reliance on imported fuels. (c) The development of eligible renewable energy resources and the delivery of the electricity generated by those resources to customers in California may ameliorate air quality 1 problems throughout the state, address global wanning and climate change, protect the endangered Sierra snowpack, and improve public health by reducing the burning of fossil fuels and the associated environmental impacts and by reducing in- I state fossil fuel consumption. (d) The California Renewables Portfolio Standard Program is intended to complement the 1 Renewable Energy Resources Program administered by the State Energy Resources i Conservation and Development Commission and established pursuant to Chapter 8.6 (commencing with Section 25740) of Division 15 of the Public Resources Code. t (c) New and modified electric transmission facilities may be necessary to facilitate the stale achieving its renewables portfolio standard targets. j SEC 7. Section 399.12 of the Public Utilities Code is amended to read as follows: I 39912. For purposes of this article, the following terms have the following meanings: I (a) "Delivered" and "delivery" have the same meaning as provided in subdivision (a) of i Section 25741 of the Public Resources Code. p 1 1 (b) "Eligible renewable energy resource" means an e;ec6c.gcnerat;a; a solar and cleat I 029 Version 1 (revised) energy facility that meets the definition of "in-state renewable electricity generation facility" in Section 25741 of the Public Resources Code, subject to the following limitations: (1)(A) An existing small hydroelectric generation facility of 30 megawatts or less shall be eligible only if a retail seller owned or procured the electricity from the facility as of December 31, 2005. A new hydroelectric facility is not an eligible renewable energy resource if it will require a new or increased appropriation or diversion of water from a watercourse. (B) Notwithstanding subparagraph (A), an existing conduit hydroelectric facility, as defined by Section 823a of Title 16 of the United States Code, of 30 megawatts or less, shall be an eligible renewable energy resource. A new conduit hydroelectric facility, as defined by Section 823a of Title 16 of the United States Code, of 30 megawatts or less, shall be an eligible renewable energy resource so long as it does not require a new or increased appropriation or diversion of water from a watercourse. (3) A facility engaged in the combustion of municipal solid waste shall not be considered an eligible renewable energy resource unless it is located in Stanislaus County and was operational prior to September 26, 1996. (c) "Energy Commission" means the State Energy Resources Conservation and Development Commission. (d) "Local publicly owned electric utility" has the same meaning as provided in subdivision (d) of Section 9604. (e) "Procure" means that a retail seller receives delivered electricity generated by an eligible renewable energy resource that it owns or for which it has entered into an electricity purchase agreement. Nothing in this article is intended to imply that the purchase of electricity from third parties in a wholesale transaction is the preferred method of fulfilling a retail seller's 9 , Version I (revised) obligation In comply with this article. A (f) 'Renewables portfolio standard" means the specified percentage of electricity generated by eligible renewable energy resources that a retail seller is required to procure pursuant to this article. i (g)(1) "Renewable energy credit' means a certificate of proof, issued through the accounting system established by the Energy Commission pI rsuant to Section 399.13, that one a unit of electricity was generated and delivered by an eligible renewable energy resource. (2) 'Renewable energy credit" includes all renew able and environmental attributes associated with the production of electricity from the eligible renewable energy resource, except i for an emissions reduction credit issued pursuant to Section 40709 of the Health and Safety Code 1 and any credits or payments associated with the reduction of solid waste and treatment benefits created by the utilization of biomass or biogas fuels. 1 (3) No electricity generated by an eligible renewable energy resource attributable to the I use of nonrenewable fuels, beyond a de minimus quantity, as determined by the Energy 1 Commission, shall result in the creation of a renewable energy credit. (h) "Retail seller' means an entity engaged in the retail sale of electricity to end-use customers located within the state, including any of the following: (1) An electrical corporation, as defined in Section 218. I (2) A community choice aggregator. The commission shall institute a rulemaking to determine the manner in which a community choice aggregator will participate in the renewables portfolio standard program subject to the same terns and conditions applicable to an electrical corporation: i r (3) An electric service provider, as defined in Section 2.18.3, for all sales of electricity to 10 a i 031 r Version 1 (revised) customers beginning January 1. 2006. The commission shall institute a rulemaking to determine the manner in which electric service providers will participate in the renewables portfolio standard program. The electric service provider shall be subject to the same terms and conditions applicable to an electrical corporation pursuant to this article. Nothing in this paragraph shall impair a contract entered into between an electric service provider and a retail customer prior to the suspension of direct access by the commission pursuant to Section 80110 of the Water Code. (4) "Retail seller" does not include any of the following: (A) A corporation or person employing cogeneration technology or producing electricity consistent with subdivision (b) of Section 218. (B) The Department of Water Resources acting in its capacity pursuant to Division 27 (commencing with Section 80000) of the Water Code. SEC 8. Section 399.13 of the Public Utilities Code is amended to read as follows: 399.13. The Energy Commission shall do all of the following: (a) Certify. eligible renewable energy resources that it determines meet the criteria described in subdivision (b) of Section 399.12. (b) Design and implement an accounting system to verify compliance with the renewables portfolio standard by retail sellers, to ensure that electricity generated by an eligible renewable energy resource is counted only once for the purpose of meeting the renewables portfolio standard of this state or any other state, to certify renewable energy credits produced by eligible renewable energy resources, and to verify retail product claims in this state or any other state. In establishing the guidelines governing this accounting system, the Energy Commission shall collect data from electricity market participants that it deems necessary to verify I1 032 Version I (revised) compliance of retail sellers, in accordance with the requirements of this article and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title I of the Government Code). In seeking data from eleetfieal ceFp1raiians retail sellers, the Energy t Commission shall request data front the commission. The commission shall collect data from electiieall retail sellers and remit the data to the `Energy Commission within 90 days of the request. I 1 (c) Establish a system for tracking and verifying renewable energy credits that, through the use of independently audited data, verifies the generation and delivery of electricity 1 associated with each renewable energy credit and protects against multiple counting of the same renewable energy credit. The Energy Commission shall consult with other western states and with the Western Electricity Coordinating Council in the development of this system. i (d) Certify, for purposes of compliance with the renewaWP renctrables portfolio standard I requirements by a retail seller, the eligibility of renewable energy credits associated with I deliveries of electricity by an eligible renewable energy resource to a local publicly owned electric utility, if the Energy Commission determines that the following conditions have been satisfied: (1) The local publicly owned electric utility thatlis procuring the electricity is in compliance with the requirements of Section 387. (2) The local publicly owned electric utility has established a+3 -the annual renewables portfolio standard targets taFget eempamble a ant+an required by Section 399.15, is procuring sufficient eligible renewable energy resources to satisfy the targets, and will not fail to satisfy the targets in the event that the renewable energy credit is sold to another retail seller. 12 033 Version 1 (revised) (e) Institute a rulemaking proceeding to determine the manner in which a local publicly owned electric utility will comply with Section 387 and implement the renewables portfolio standard program. The Energy Commission shall utilize the same processes and have the same powers to enforce the renewables portfolio standard program with respect to local publicly owned electric utilities as the commission has with respect to retail sellers, including but not limited to those processes and powers specified in Sections 399.14 and 399.15 related to the review and adoption of a renewable energy procurement plan, establishment of flexible rules for compliance, and imposition of annual penalties for failure to comply with a local publicly awned electric utility's renewable energy procurement plan. The Energy Commission shall not have an), authority to approve or disapprove the terms, conditions or pricing of any renewable energy resources contract entered into by a local publicly owned electric utility, or authority pursumu to Section 2113. SEC 9. Section 399.14 of the Public Utilities Code is amended to read as follows: 399.14. (a) (.l) The commission shall direct each retail seller to prepare a renewable energy procurement plan that includes the matter in paragraph (3), to satisfy its obligations under the renewables portfolio standard. To the extent feasible, this procurement plan shall be proposed, reviewed, and adopted by the commission as part of, and pursuant to, a general procurement plan process. The commission shall require each eleetrieal eerp6wtiean retail seller to review and update its renewable energy procurement plan as it determines to be necessary. (2) The commission shalt adopt, by rulemaking, all of the following: 399. 1 _. eligible 13 034 1 Version I (revised) et�e��;y-reseurfes � WA) A process that provides criteria for the rank ordering and selection of least -cost i and best -fit eligible renewable energy resources to comply with the annual California Renewables Portfolio Standard Program obligations on a total cost basis. This process shall consider estimates of indirect costs associated with needed transmission investments and ongoing utility expenses resulting from integrating and operating eligible renewable energy resources. (-G){B) (i) Flexible rules for compliance, including rules permitting retail sellers to apply 8 excess procurement in one year to subsequent years or inadequate procurement in one year to no more than the following three years. The flexible rules for compliance shall apply to all years, including years before and after a retail seller procures at lea t 3$ 50 percent of total retail sales of electricity from eligible renewable energy resources. i (ii) The flexible rules for compliance shall address situations where, as a result of insufficient transmission, a retail seller is unable to procure eligible renewable energy resources 1 sufficient to satisfy the requirements of this article. Any rules addressing insufficient transmission shall require a finding by the commission thatI the retail seller has undertaken all reasonable efforts to do all of the following: f (1) Utilize flexible delivery points. 1 (II) Ensure the availability of any needed transmission capacity. 1 (III) If the retail seller is an electric corporation,' to construct needed transmission i facilities. t (IV) Nothing in this subparagraph shall be construed to revise any portion of Section 454.5. 035 Version I (revised) FBi(C) Standard terms and conditions to be used by all retail sellers in contracting for eligible renewable energy resources, including performance requirements for renewable generators. A contract for the purchase of electricity generated by an eligible renewable energy resource shall, at a minimum, include the renewable energy credits associated with all electricity generation specified under the contract. The standard terns and conditions shall include the requirement that, no later than six months after the commission's approval of an electricity purchase agreement entered into pursuant to this article, the following information about the agreement shall be disclosed by the commission: party names, resource type, project location, and project capacity. (3) Consistent with the goal of procuring the least -cost and best -fit eligible renewable energy resources, the renewable energy procurement plan submitted by a retail seller shall include all of the following: (A) An assessment of annual or multiyear portfolio supplies and demand to determine the optimal mix of eligible renewable energy resources with deliverability characteristics that may include peaking, dispatchable, baseload, firm, and as -available capacity. (13) Provisions for employing available compliance flexibility mechanisms established by the commission. (C) A bid solicitation setting forth the need for eligible renewable energy resources of each deliverability characteristic, required online dates, and locational preferences, if any. (4) In soliciting and procuring eligible renewable energy resources, each PILGIFi^^' c-orperatien retail seller shall offer contracts of no less than 4-0 20 years in duration, unless the commission approves of a contract of shorter duration. (5) In soliciting and procuring eligible renewable energy resources. each eleetreal 15 036 Version I (revised) i eeepsratiee-retail seller may give preference to projects that provide tangible demonstrable benefits to communities with a plurality of minority or low-income populations. (b) The commission may authorize a retail seller to enter into a contract of less than +9 20 years' duration with an eligible renewable energy resource, if the commission has established, 1 for each retail seller, minimum quantities of eligible renewable energy resources to be procured 1 either through contracts of at least 40 20 years' duration oIr from new facilities commencing commercial operations on or after January 1, 2005. i (c) The commission shall review and accept, modify, or reject each eleetneal I eerperation's retail seller's renewable energy procurement plan prior to the commencement of t renewable procurement pursuant to this article by a retail seller. (d) The commission shall review the results of an ^ligible renewable energy resources solicitation submitted for approval by i , retail seller and accept or reject 1 proposed contracts with eligible renewable energy resources based on consistency with the approved renewable energy procurement plan. If the commi1 ssion determines that the bid prices are elevated due to a lack of effective competition among the bidders, the commission shall I direct the retail seller to renegotiate the contracts or conduct a new solicitation. I (e) If an electrical corporation fails to comply with a commission order adopting a renewable energy procurement plan, the commission shall exercise its authority pursuant to t Section 2113 to require compliance. Th }*y OtheF retail sellef tha! fails to mem annual praeummen! tafgets established pwAtiant tel seetoon 1 39945, 1 i (f) (t) The commission may authorize a procurement entity to enter into contracts on 16 037 Version 1 (revised) behalf of customers of a retail seller for deliveries of eligible renewable energy resources to satisfy annual renewables portfolio standard obligations. The commission may not require any person or corporation to act as a procurement entity or require any party to purchase eligible renewable energy resources from a procurement entity. (2) Subject to review and approval by the commission, the procurement entity shall be permitted to recover reasonable administrative and procurement costs through the retail rates of end-use customers that are served by the procurement entity and are directly benefiting from the procurement of eligible renewable energy resources. . (g) Procurement and administrative costs associated with long-term contracts entered into by an eleetriettl eorpefatien retail seller for eligible renewable energy resources pursuant to this article, afid appFaved by the eemmis4ianno more than l0 percent over the market price determined by the Energy Commission pursuant to subdivision (c) of Section 399.15, shall be deemed reasonable per se for electricity deliverer/ on or before January 1, 2030, and shall be recoverable in rates. (h) Construction, alteration, demolition, installation, and repair work on an eligible renewable energy resource that receives production incentives or funding pursuant to seetton Sections 25742, 25743 or 25751.5 of the Public Resources Code, including work performed to qualify, receive, or maintain production.incentives is "public works" for the purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Libor Code. (i) The commission shall impose annual penalties up to the amount of the shortfall in kilowatthours multiplier) by I cent per kilowatthour on any retail seller that fails to meet the annual procurement targets establisher/ pursuant to .Section 399.15. The commission shall not cap the penalty that maty be imposed on a retail seller under this section. All penalties assessed 17 W• Version 1 (revised) t and collected pursuant to this section shall be paid or transferred annually to the Solar and I Clean Energy Transmission Account administered by the, Energy Commission pursuant to section 25751.5 of the Public Resources Code and shall be used for programs designed to foster the development of new in-state transmission and renewable electricity generation facilities. Penalties paid or transferred by any retail seller pursuant to this section shall not be recoverable by the retail seller either directly or indirectly in rates. (j) Penalties assessed pursuant to subdivision (i) may be waived upon a finding by the commission that there is good cause for a retail seller's failure to comply with a commission order adapting a renewable energy procurement plan. A finding by the commission that there is t good cause for failure to comply with a commission order adopting a renewable energy procurement plan shall be trade if the commission determines that any one of the following conditions are met: (1) The deadline or milestone changed due to circumstances beyond the retail seller's Y control, including, but not limited to, administrative and legal appeals, seller non-performance, insufficient response to a competitive solicitation for eligible renewable energy resources, and lack of effective competition. k ) (2) The retail seller demonstrates a good faith effort to meet the target, including but not limited to executed contracts that provide future deliveries sufcient to satisfy current year I deficits. { (3) The target was missed Clue to unforeseen natural disasters or acts of God that prevent timely completion of the project deadline or milestone. (4) The retail seller is nimble to receive energy fromIeligible renewable energy resources due to inadequate electric transmission lines. 18 039 Version 1 (revised) (5) For any year tip 10 and including December 31, 2013, a local publicly owned electric utility demonstrates than, despite its good faith effort. it has had insufficient time to meet the annual procurement targets established in Section 399.15, SEC 10. Section 399.15 of the Public Utilities Code is amended to read as follows: 399.15. (a) In order to fulfill unmet long-term resource needs, reduce greenhouse gas emissions, address global warming and climate change, protect the endangered Sierra snowpack, and lessen California's dependence on fluctuating fuel prices, the commission shall establish a renewables portfolio standard requiring all eleetFieal eeiparafiORS retail sellers to procure a minimum quantity of electricity generated by eligible renewable energy resources as a specified percentage of total kilowatthours sold to their retail end-use customers each calendar year, ..,� feat-ta-lifltittt-on-Ehe-tekal-ttmet�tt-ef-si�stt}e>Egended-al3eve-tlte-n}arket-prtees�etcr�}ed (b) The commission shall implement annual procurement targets for each retail seller as follows: (1) Nonvithstanding Section 454.5, each Haeb retail seller shall, pursuant to subdivision (a), increase its total procurement of eligible renewable energy resources by at least an additional 4-2 percent of retail sales per year so that 20 percent of its retail sales are procured from eligible renewable energy resources no later than December 31, 2010, 40 percent of its retail sales are procured from eligible renewable energy resources no later than December 31, 2020, and 50 percent of its retail sales are procured from eligible renewable energy resources no later than December 31, 2025. .A retail sane.Midi 20 pereent of ....a ..ale pFeetifed—fm"igible (2) I or purposes of setting annual procurement targets, the commission shall establish an 19 M' i Version 1 (revised) initial baseline for each retail seller based on the actual perce' mage of retail sales procured from eligible renewable energy resources in 2001, and to the extent applicable, adjusted going forward 6 pursuant to Section 399.12. r (3) Only for purposes of establishing these targets the commission shall include all t electricity sold to retail customers by the Department of Water Resources pursuant to Section 80100 of the Water Code in the calculation of retail sales by an eleetvieal r retail v seller. (A) A retail seller is required to accept all bilateral offers for electricity generated by 4 eligible renewable energy resources that are less than or equal to the, market prices established pursuant to subdivision (c.), except that a retail seller is not obligated to accept a bilateral offer ./or any year in which the retail seller has procured sufficient renewable energy resources to meet its anneal target established pursuant to this subdivision. la the eveAt that ^ retail"Selle P1 itienal el entire t fenewabte t D 1 1 (c) The Energy Commission eafntrJssien shall determine by a rulemaking proceeding establish 4 the market price of eliectricity for terms corresponding to the length of contracts with eligible renewable energy resources; and the methodology for I making that determination that considers in eensidemtziefl ef the following: 1 (1) The long-term market price of electricity for fixed price contracts, determined pursuant to an e1eeirie l retail seller'sigeneral procurement activities as authorized by the commission. 20 041 Version I (revised) (2) The long-term ownership, operating, and fixed-price fuel costs associated with fixed- price electricity from new generating facilities. (3) The value of different products including baseload, peaking, and as -available electricity. (4) Natural gas price forecasts that are consistent with forecasts used for procurement pf other resources, including loading order resources. (5) The value and benefits of renewable resources, including but not limited to hedging value and carbon emissions reductions. (b) The value and benefits of baseload generation. (d) A retail seller shalt not be required to enter into long-term contracts with operators of eligible renewable energy resources that exceed by inore than 10 percent the market prices established pursuant to subdivision (c) for electricity delivered on or before January 1, 2030. The commission shall allow a retail seller to limit its annual procurement obligation to the quantity of eligible renewable energy resources that can be procured at no more than 10 percent over the market price established pursuant to subdivision (c). Indirect costs associated with the purchase of eligible renewable energy resources by a retail seller, including imbalance energy charges, sale of excess energy, decreased generation from existing resources, or transmission upgrades, are recoverable in rates, as authorized by the commission, The camffii`^i^^ '""" ve-the 21 042 Version I (revised) ... • . . above maAeteest: 1 —(F) The above m rket eams, inrekWiog tie�n nand �e I epefations an or aftef jamiary 1, 2005. (D) NS PHRMSeS Of Fenewable 0 above maAeteest: 1 —(F) The above m rket eams, inrekWiog releeti�eol-aet�er-anon-�reni-vetnn[aflt}` flrt�r;in� 22 043 Version I (revised) ta pFeeafL eligible renewable eneFg5' FeSBuKes a! above mar4iet pfiees tha�tn.re '-'M, 'e'au...1'ed ., b (e) The establishment of a renewables portfolio standard shall not constitute implementation by the commission of the federal Public Utility Regulatory Policies Act of 1978 (Public Law 95-617). (t) The Energy Commission eammissien—shall consult with the commission in calculating market prices under subdivision (c). and The Energy Commission and the commission shall consult with each other in establishing ether renewables portfolio standard policies. SLC 11. Section 1001 of the Public Utilities Code is amended to read as follows: 1001. Except as otherwise provided in Division 15 (commencing with Section 25000) of the Public Resources Code, noNe railroad corporation whose railroad is operated primarily by electric energy, street railroad corporation, gas corporation, electrical corporation, telegraph corporation, telephone corporation, water corporation, or sewer system corporation shall begin the construction of a street railroad, or of a line, plant, or system, or of any extension thereof, without having first obtained from the commission a certificate that the present or future public convenience and necessity require or will require such construction. This article shall not be construed to require any such corporation to secure such certificate for an extension within any city or city and county within which it has theretofore lawfully commenced operations, or for an extension into territory either within or without a city or city and county contiguous to its street railroad, or line, plant, or system, and not theretofore served by a public utility of like character, or for an extension within or to territory already served by it, necessary in the ordinary course of its business. If any public utility, in constructing 23 )M i i 'I Version I (revised) or extending its line, plant, or system, interferes or is about to interfere with the operation of the line, plant, or system of any other public utility or of the water system of a public agency, already constructed, the commission, on complaint of the public utility or public agency claiming to be injuriously affected, may, after hearing, make such oulei and prescribe such terms and conditions for the location of the lines, plants, or systems affected as to it may seem just and reasonable. SEC 12. Section 25107 of the Public Resources Code is amended to read as follows: r 25107. "Electric transmission line" means any electric powerline carrying electric power from a thermal powerplant or a solar and clean energy plant located within the state to a I point of junetion with any interconnected transmission system. "Electric transmission line' does not include any replacement on the existing site of existing electric powerlines with electric powerlines equivalent to such existing electric powerlines or the placement of new or additional conductors, insulators, or accessories related to such electric powerlines on supporting structures r in existence on the effective date of this division or certified pursuant to this division. SEC 13. Section 25110 of the Public Resources Code is amended to read as follows: 25110. "Facility" means any electric transmission line, eFthermal powerplant, or solar 1 and clean energy plant, or both electric transmission line and thermal powerplant or solar and clean energy plant, and extensions, modifications, upgradesof existing electric transmission 9 lines, regulated according to the provisions of this division. SEC 14. Section 25137 of the Public Resources Code is added to read as follows: 25137. "Solar and dean energy plant" means any electrical generating facility using wind, solar photovoltaic, solar dtennal, biomass, biogas, geothermal. fuel cells using renewable fuels, digester gas, municipal solid waste conversion, landfill gas, acean wave, ocean thermal, or tidal current technologies, with a generating capacity of 30 inegavans or more, or 24 045 Version 1 (revised) small hydroelectric generation of 30 megawatts or less, and any facilities appurtenant thereto. Expinrawry. development, and production wells, resource transmission limes, and other related facilities used in connection with a renewable project or a renewable development project are not appurtenant facilities for the purposes of this division. SEC 15. Section 25502 of the Public Resources Code is amended to read as follows: 25502. Each person proposing to construct a thermal powerplant, solar and clean energy plant, or electric transmission fine on a site shall submit to the commission a notice of intention to file an application for the certification of the site and related facility or facilities. The notice shall be an attempt primarily to determine the suitability of the proposed sites to accommodate the facilities and to determine the general conformity of the proposed sites and related facilities with standards of the commission and assessments of need adopted pursuant to Sections 2530.5 to 25308, inclusive. The notice shall be in -the form prescribed by the commission and shall be supported by such information as the commission may require. Any site and related facility once found to be acceptable pursuant to Section 25516 is, and shall continue to be, eligible for consideration in an application for certification without further proceedings required for a notice under this chapter. SEC 16. Section 25517 of the Public Resources Code is amended to read as follows: 25517. Except as provided in Section 25501, no construction of any thermal powerplant, solar and clean energy plant, or electric transmission line shall be commenced by any electric utility without first obtaining certification as prescribed in this division. Any onsite improvements not qualifying as construction may be required to be restored as determined by the commission to be necessary to protect the environment, if certification is denied. SEC 17. Section 25522 of the Public Resources Code is amended to read as follows: 25522. (a) Except as provided in subdivision (c) of Section 25520.5 and Section 25 Version I (revised) r 25550, within 18 months of the filing of an application for certification, or within 12 months if it 1 is filed within one year of Ute commission's approval of the notice of intent, or at any later time as is mutually agreed by the commission and the applicant, the commission shall issue a written decision as to the application. Y (b) The commission shall determine, within 45 days after it receives the application, i whether the application is complete. If the commission determines that the application is complete, the application shall be deemed filed for purposes of this section on the date that this determination is made. If the commission determines that the application is incomplete, the I commission shall specify in writing those parts of the application which are incomplete and shall indicate the manner in which it can be made complete. If the applicant submits additional data to I complete the application, the commission shall determine, within 30 days after receipt of that data, whether the data is sufficient to make the application complete. The application shall be 1 deemed filed on the date when the commission determines thl�e application is complete if the commission has adopted regulations specifying the informational requirements for a complete application, but if the commission has not adopted regulations, the application shall be deemed i filed on the last date the commission receives any additional data that completes the application. SEC 18. Section 25531 of the Public Resources Code is amended to read as follows: l 25531. (a) The decisions of the commission 9n any application for certification of a a site and related facility are subject to judicial review by the Supreme Court of California. (b) No new or additional evidence may be introduced upon review and the cause shall be heard on the record of the commission as certified to by it. The review shall not be extended further than to determine whether the commission has regularly pursued its authority, including a determination of whether the order or decision under review violates any right of the petitioner under the United States Constitution or the California Constitution. The findings and 26 047 Version t (revised) conclusions of the commission on questions of fact are final and are not subject to review, except as provided in this article. These questions of fact shall include ultimate facts and the findings and conclusions of the commission. A report prepared by, or an approval of, the commission pursuant to Section 25510, 25514, 25516, or 25516.5, or subdivision (b) of Section 25520.5, shall not constitute a decision of the commission subject to judicial review. (c) Subject to the right of judicial review of decisions of the commission, no court in this state has jurisdiction to hear or determine any case or controversy concerning any matter which was, or could have been, determined in a proceeding before the commission, or to stop or delay the construction or operation of any thermal powerplant or solar and clean energy plant except to enforce compliance with the provisions of a decision of the commission. (d) Notwithstanding Section 1250.370 of the Code of Civil Procedure: (I) if the commission requires, pursuant to subdivision (a) of Section 25528, as a condition of certification of any site and related facility, that the applicant acquire development rights, that requirement conclusively establishes the matters referred to in Sections 1240.030 and 1240.220 of the Code of Civil Procedure in any eminent domain proceeding brought by the applicant to acquire the development rights. (2) If the commission certifies any site and related facility, that certification conclusively establishes the matters referred to in Sections 1240.030 and 1240.220 of the Code of Civil Procedure in any eminent domain proceeding brought to acquire the site and related facility. (e) No decision of the commission pursuant to Section 25516, 25522, or 25523 shall be found to mandate a specific supply plan for any utility as prohibited by Section 25323. SEC 19. Section 25540.6 of the Public Resources Code is amended to read as follows: 25540.6. (a) Notwithstanding any other provision of law, no notice of intention is required, and the commission shall issue its final decision on the application, as specified in 27 M I . Version I (revised) Section 25523, within 12 months after the filing of the application for certification of the r powerplant and related facility or facilities, or at any later time as is mutually agreed by the t commission and the applicant, for any of the following: j (1) A thermal powerplant which will employ cogeneration technology, a thermal powerplant that will employ natural gas-fired technology, or a solar and clean energy plant sela }hep 3t3}-pBYF laHt. 0 1 (2) A modification of an existing facility. i (3) A thermal powerplant or solar and clean energy plant which it is only technologically or economically feasible to site at or near the energy source. 1 (4) A thermal powerplant with a generating capacity tIof up to 1.00 megawatts. (5) A thermal powerplant or solar and clean energy plant designed to develop or demonstrate technologies which have not previously beentbuilt or operated on a commercial 1 scale. Such a research, development, or commercial demonstration project may include, but is I not limited to, the use of renewable or alternative fuels, improvements in energy conversion efficiency, or the use of advanced pollution control systems! Such a facility may not exceed 300 megawatts unless the commission, by regulation, authorizes a greater capacity. Section 25524 does not apply to such a powerplant and related facility or facilities. (b) projects exempted from the notice of intention requirement pursuant to paragraph (1), d (4), or (5) of subdivision (a) shall include, in the application for certification, a discussion of the applicant's site selection criteria, any alternative sites that the applicant considered for the project, and the reasons why the applicant chose the proposed site. That discussion shall not be required for cogeneration projects at existing industrial sites. The commission may also accept i an application for a noncogeneration project at an existing industrial site without requiring a 28 Version 1 (revised) discussion of site alternatives if the commission finds that the project has a strong relationship to the existing industrial site and that it is therefore reasonable not to analyze alternative sites for the project. SEC 20. Section 25541 of the Public Resources Code is amended to read as follows: 25541. The commission may exempt from this chapter thermal powerplants with a generating capacity of up to 100 megawatts. -and modifications to existing generating facilities that do not add capacity in excess of 100 megawatts, and solar and clean energy plants, if the commission finds that no substantial adverse impact on the environment or energy resources will result from the construction or operation of the proposed facility or from the modifications. SEC 21. Section 25541.1 of the Public Resources Code is amended to read as follows: 25541. 1 It is the intent of die'beegisla4we-People to encourage the development of thermal powerplants or solar and clean energy plants using resource recovery (waste -to -energy) technology. Previously enacted incentives for the production of electrical energy from nonfossil fuels in commercially scaled projects have failed to produce the desired results. At the same time, the state faces a growing problem in the environmentally safe disposal of its solid waste. The creation of electricity by a thermal powcrplant or solar and clean energy plant using resource recovery technology addresses both problems by doing all of the following: (a) Generating electricity from:a nonfossil fuel of an ample, growing supply. (b) Conserving landfill space, thus reducing waste disposal costs. (c) Avoiding the health hazards of burying garbage. Furthermore, development of resource recovery facilities creates new construction jobs, as well as ongoing operating jobs, in the communities in which they are located. 29 050 Version I (revised) SEC 22, Section 25542.5 of the Public Resources Code is added to read as follows: { 25542.5. The Energy Commission shall, on an annual basis, publish a report that n identifies and designates Solar and Clean Energy Zones in the state of California based on i geographic: areas identified by the Energy Commission's Public Interest F_nergy Research Program as having potential for solar and clean energy resources. SEC 23. Section 25550 of the Public Resources Code is added to read as follows: 1 25550. (a) Notwithstanding subdivision (a) of Section 25522, and Section 25540.6 the commission shall establish a process to issue its final certification for any solar and clean Y energy plant and related facilities within six months after one fling oJ'the application Jor certification that, on the basis of an initial review, shows that there is substantial evidence that the project will not cause a significant adverse innpact on the environment or electrical transmission and distribution system and will comply with all applicable standards, ordinances, or laws. For purposes of this section, filing has the same meaning as in Section 25522. , (b) Solar and clean energy plants and related facilitii s revicwed under this process shall satisfy the requirements of Section 25520 and other necessary information required by the I commission, by regulation, including the information required for permitting by each local, state, and regional agency that would have jurisdiction over, the proposed solar and clean energy plant and related facilities but for the exclusive jurisdiction of the commission and the 1 r information required for permitting by each federal agency that Ins jurisdiction over the n Y proposed solar and clean energy plant and related facilities. 1 (c) After acceptance of an application under this section, the commission shall not be required to issue a six-month final decision on the application if it deternines there is substantial evidence in the record that the solar and clean energy plant and related facilities will likely 1 result in a significant adverse impact on the environment or electrical system or does nor comply i 30 051 Version 1 (revised) with an applicable standard, ordinance, or law. Under this circumstance, the commission shall make its decision in accordance with subdivision (a) of Section 25522 and Section 25540.6, and a new application shall not be required. (d) For an application that the commission accepts under this section, all local, regional, and state agencies that would have had jurisdiction over the proposed solar and clean energy plant and refuted facilities, but for the exclusive jurisdiction of the commission, shall provide theirfinai comments, determinations, or opinions within 100 days after the filing of the application. The regional water quality control boards, as established pursuant to Chapter 4 (commencing with Section 13200) of Division 7 of the Water Code, shall retain jurisdiction over any applicable water quality standard that is incorporated into any final certification issued pursuant to this chapter. (e) Applicants of solar and clean energy plants and related facilities that demonstrate superior environmental or efficiency performance shalt receive priority in review. (f) With respect to a solar and clean energy plant and related facilities reviewed under the process established by this section, it shall be shorn that the applicant has a contract with a general contractor and has contracted far an adequate supply of skilled labor to construct, operate, and maintain the plant. (g) With respect to a solar and clean energy plant and related facilities reviewed under the process established by this section, it shall be shown that the solar and clean energy plant and related facilities complies with all regulations adopted by the commission that ensure that an application addresses disproportionate impacts in a manner consistent with Section 65040.12 of the Government Code. 31 052 i Version I (revised) (h) This section shall not apply to an application fled with the commission on or before January 1, 2009. (i) To implement this section, the commission may adopt emergency regulations in t accordance with Chapter 3.5 (commencing with Section 11340) of Part 2 of Division 3 of Title 2 of the Government Code. For purposes of that chapter, including without limitation. Section i 11349.6 of the Government Code, the adoption of the regulations shall be considered by the Office of Administrative Law to be necessaryfor the immediate preservation of the public peace, health, safety, and general welfare. { (j) All solar and clean energy plants receiving certification pursuant to this section shall be considered a public works project subject to the provisions of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code, and due Department of Industrial Relations shall have the same authority and responsibility to enforce those provisions as it has I under the Labor Code. SEC 24. Chapter 6.6 of Division 15 of the Public Resources Code is added to read as follows: i 25560. No electrical corporation as defined in Section 218 of the Public Utilities Code t shall begin the construction of a transmission line or of any;extension, modification, or upgrade thereof. without having first obtained from the commission a certificate that the present or future public convenience and necessity require or will require such constriction. i This chapter shall not be construed to require any stich corporation to secure such certificare for an extension within any city or city and county within which it has theretofore lakifully commenced operations, or for an artension into territory either within or without a city- or ityor city and county contiguous to its transmission line or system, and riot theretofore served by a public utility of like character, or far an extensirnh within o� to territory already seined by it, ' 1 32 i 053 Version 1 (revised) necessary in the ordinary course of its business. !f any public utility, irn constructing or extending its line or system, interferes or is about to interfere with the operation of the line or system of any other public utility or of the water system of a public agency. already constructed. the commission, ore complaint of the public utility or public agency claiming to be injuriously affected, may, after hearing, and in consultation with the Public Utilities Commission make such order and prescribe such terms and conditionsfor the location of the lines or systems affected as to it may seem just and reasonable. 25561. (a) Tire commission shall exempt the construction of any line or.system, or extension thereof, located outside the boundaries of the statefrorn the requirements of Section 25560, upon the application of the public utility constructing that line or system, or extension thcreoj; if the public utility derives 75 percent or more of its operating revenues from outside the state, as recorded in the fiscal period immediately before the filing of the application, unless the commission detennines that the public interest requires that the constriction should not be exempt from Sectio: 25560. (b) Except as provided in subdivision (c), the commission shall make the determination denying the exemption. as specified in subdivision (a). within 90 days after the public utility files the application for exemption with the commission. If the commission fails to make this determination within that 90 -day period, the cotutruction of that line or system, or extension thereof, is exempt from the requirements of Section 25560. (c) The commission and the public utilih° f ling the application for exemption may, if both agree, extend the time period within which fire commission is required to make the determination denying the exemption, for not more than an additional 60 days after the expiration of the 90 -day period specified in subdivision (b). 33 ,f Version 1 (revised) 25562. (a) The commission, as a basis for granting airy certificate pursuant to Section 25560, ,shall give consideration to thefollowingfactors: ( l) Community values. (2) Recreational and park areas. t i (3) Historical and aesthetic values. j l (4) Influence on environment, except that in the case of any line or system or extension I thereof located in another state. which will be subject to environmental review pursuant to the National Environmental Policy Act of 1969 (Chapter 55 (cotihmencing with Section 4321) of Title r 42 of the United States Code) or similar state taws in the other state, the commission shall not consider influence on the environment unless any emissions or discharges therefrom would have a significant influence on the environment of this state. (5) Proximity to and related effect on populated areas and whether alternative locations are reasonably available and appropriate. (6) Value and benefits of baseload generation. (b) With respect to any electrical transmission line required to be constructer!, modified or upgraded to provide transmission from a thermal powerplant or a solar and clear energy plant, and for which a certificate is required pursuant to rhes provisions of Division 15 (commencing with Section 25000), the decision granting such other certificate shall be conclusive as to all matters detennined thereby and shall take the place of the requirenhent for consideration by the commission of the six factors specified in subdivision (a) of this .section. (c) As a condition for granting any certificate pursuant to Section 25560, fire commission shall require compliance with the California Desert Protection Act of 1.994 (commencing with Section 410aaa of Title 16 of the United States Code). 34 055 Version 7 (revised) 25563. In considering an application for a certificate for an electric transmission facility pursuant to Section 25560, the commission shall consider cost-effective alternatives to transmission facilities that meet the need for an efficient, reliable, and affordable supply of electricity, including; but not limited to, demand-side alternatives such as targeted energy efficiency, ultraclean distributed generation, as defined in Section 353.2 of the Public Utilities Code, and other demand reduction resources. The provisions of this section shall not apply to any electrical transmission line required to be constructed, modified or upgraded to provide transmission from a solar and clean energy plant. 25564. Every electrical corporation submitting an application to the commission jor a certificate authorizing the new construction of any electric transmission line or extension, not subject to the provisions of Chapter 6 (commencing with Section 25500), shall include all of the following information in the application in addition to any outer required information: (a) Preliminary engineering and design information on fire project. The design infornation provident shall include preliminary data regarding the operating characteristics of the line or extension. (b) A project implennentatian plait showing how the project would be contracted for and constructed. This plan shall show how all major tasks world be integrated and shall inrhtde a timetable identifying the design, construction, completion, and operation dates for each major component of the line or extension. (c) Art appropriate cost estimate, including preliminary estimates of the costs of financing, construction. and operation of the line or extension. (d) The corporation shall demonstrate the financial impact of the line or extension construction on the corporation's ratepayers, stockholders, and on fire cost of the corporation's 35 056 j Version t (revised) borrowed capital. The cost analyses shall be performed for the projected useful life of the line or extension. I i (e) A design and construction management and cost control plan which indicates fire contractual anti working responsibilities and interrelationships between the corporation's a management and other major parties involved in the project. %This plan shall also include a construction progress information systern and specific cost controls. i 25565. Every electrical corporation submitting an application to the commission for a i certificate authorizing the new construction of an electric transmission line or extension, which is subject to the provisions of Chapter 6 (commencing with Section 25500), shall include in the r application the information specified in subdivisions (b), (c), and (e) of Section 25564, in addition to any other required information. Tire corporationI 1 may also include in the application any other information specified in Section 25564. 1 i 25.566. Before any certificate may issue under this chapter, every applicantfor a Y certificate shallfile in the office of the commission a certified copy of tire applicant's articles of i incorporation or charter. Every applicant for it certificate shall file in the office of the commission such evidence as is required by tire commission +tto show that the applicant has received the required consent, franchise, or permit of the proper county, city and couruy, city, or r I � otter public authority. + i 25567. (a) The cormnission may, with or without hearing, issue the certificate as r requested for, or refuse to issue it. or issue it for the constriction of a portion only of the Y contemplated electric transmission line or extension thereof, or for the partial exercise only of fire right or privilege, and may attach to ire exercise of tire i 'ghts granted by the certificate sui:lr a terns and coalitions, including provisions for the acquisition by the public of rite franchise or 36 057 Version 1 (revised) permit and all rights acquired thereunder and all works constructed or maintained by authority thereof. as in its judgment the public convenience and necessity require; provided, however, that before issuing or reftsing to issue the certificate, the commission shall hold one or more hearings addressing any issues raised in a timely application for a hearing by any person entitled to be heard. (b) When the commission issues a certif tate for the new construction of an electric transmission line or extension, the certificate shall specify the operating and cost characteristics of the transmission line or extension, including, but not limited to. the size, capacity. cost, and all other characteristics of the transmission line or extension which are specified in the information which the electrical corporations are required to submit, pursuant to Section 25564 or 25565. (c) Notwithstanding any other provision in this chapter, an application for a certificate authorizing the constriction of new transmission facilities shall be deemed to be necessary to fire provision of electric service for purposes of any determination made tinder Section 25564 if the commission finds that the new facility is necessary to facilitate achievement of the renewables portfolio standard as established in Article 16 (commencing with Section .199.11) of the Public Utilities Code and the eligible renewable energy resources requirement as established in Article 8.6 (commencing with Section 25740) of this Division. 25568. (a) Whenever the commission issues to an electrical corporation a certificate authorizing the new construction of a transmission line, or of any extension, modification, or upgrade thereof estimated to cost greater than fifty million dollars ($50,000,000), the cohmni.ssion .shall specify in the certificate a maximum cost determined to be reasonable and prudent for the facility. The commission shall determine the maximum cost using an estimate of the anticipated construction cost, taking into consideration the design of the project, the 37 UJO Version 1 (revised) expected duration of construction, an estimate of the effects of economic inflation, and any known engineering difficulties associated with the project. 1 (b) After the certificate has been issued, the corporation may apply to the commission for an increase in the maximum cost specified in the certificate. The c•onunission nutty authorize an increase in the specified rnarimum cost if it finds and determines that the cost has in fact increased and that the present or frdttre public convenience aunt necessity require construction of the project at the increased cost, otherwise, it shall derrV the application. (c) After construction has commenced, the corporatioIn nuty apply to the commission for authorization to discontinue construction. After a showing to the satisfaction of the commission that fire present or future public convenience and necessity no longer require the completion of construction of the project, and that the construction costs incurred were reasonable and prudent, the commission may authorize discontinuance of construction and the Public Utilities Commission may authorize recovery of those construction costs which the commission determines were reasonable and prudent. (d) fit any decision by the Public Utilities Commission establishing rates for an electrical corporation reflecting the reasonable and prudent costs of the new construction of any transmission line, or of any extension, modification, or upgrade thereof, when the commission has found and determined that the addition or extension is Used and useful, [lie Public Utilities Commission shall consider whether or not the actual costs of construction are within the I maximum cost specified by the commission. SEC 25. Section 25740 of the Public Resources Code is amended to read as follows: 25740, it is the intent of the LegisleturePeople in establishing this program, to address global wanning and climate change, and protect the endangered Sierra snowcaps by incremsing ineFease the amount of electricity generated from eligible renewable energy resources 38 w t ! 059 Version l (revised) per year, so that it equals at least 20 percent of total retail sales of electricity in California per year by December 31, 2010:, at least 40 percent of total retail sales of electricity in California per year by December 31, 2020, and at least 50 percent of total retail sales of electricity in California per year by December 31, 2025. SEC 26. Section 25740.1 of the Public Resources Code is added as follows: 25740.1 The People find that the construction of electric transmission facilities necessary to facilitate the achievement of California's renewables portfolio standard targets will provide the maximum economic benefit to all customer classes that funded the New Renewable Resources Account SEC 27. Section 25743 of the Public Resources Code is amended to read as follows: 25743. (a) The commission shall terminate all production incentives awarded from the New Renewable Resources Account prior to January 1, 2002, unless the project began generating electricity by January '1, 2007. (b) (1) The commission shall, by March I, 2008, transfer to electrical corporations serving customers subject to the renewable energy public goods charge the remaining unencumbered funds in the New Renewable Resources Account. (2) The Public Utilities Commission shall ensure that each electrical corporation allocates funds received from the commission pursuant to paragraph (1) in a manner that maximizes the economic benefit to all customer classes that funded the New Renewable Resources Account. In considering and approving each electrical corporation's proposed allocations, and consistent with ,Section 25740.1, the Public Utilities Commission shall encourage and give the highest priority to allocations for the construction of, or payment to supplement the construction of. any nein or modified electric transmission facilities neces.sar), to facilitate the state achieving its renewables portfolio standard targets. 39 Version I (revised) (c) Ali projects receiving finding, in whole or in part, pursuant to this section shall be considered public works projects subject to the provisions of Chapter I (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.l and the Department of Industrial Relations shall have the .same authority and responsibility to enforce those provisions as it has under the Labor Code. t SEC 28. Section 25745 of the Public Resources Code is added to read as follows: 25745. The Energy Commission shall use its best efforts to attract and encourage investment in solar and clean energy resources, facilities, reiearch and development froth companies based in the United States to fulfill the purposes of this chapter. SEC 29. Section 25751.5 of the Public Resources , ode is added to read as follows: 25751.5 (a) The Solar and Clean Energy Transmission Account is hereby established within the Renewable Resource Trust Fund. (b) Beginning January 1, 2009, the total annual adjustments adopted pursuant to Section 399.8(d) of the Public Utilities Code shall be allocat 3d to the Solar and Clean Energy t Transmission Account, i (c) Funds in the Solar and Clean Energy Transmission Account shall be used, in whole I or in parr, for the following purposes: 4 (1) The purchase of property or right-of-way pursuant to the commission's authority under Chapter 8.9 of Division 15 of the Public Resources Code: (2) The construction of, or payment to supplement the construction (if any new or r modified electric transmission facilities necessary to facilitate the state achieving its renewables portfolio standard targets. 1 i (d) Title to any property or project paid jor in whole pursuant to this section shall vest with the commission. Title to any property or project p,id for in part pursuant to this section 40 061 Version I (revised) shall vest with the commission in a part proportionate to the commission's .share of the overall cost of the property or project. (e) Funds deposited in the Solar and Clean Energy Transmission Account shall be used to supplernent, and not to supplant, existing state funding for the purposes authorized by section (b). (f) All projects receiving funding, in whole or in part, pursuant to this section shill be considered public works projects subject to the provisions of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of rite Labor Code, and the Department of Industrial Relations .shall have the same authority and responsibility to enforce those provisions as it has under the Labor Code. SEC 30. Chapter 8.9 of Division 15 of the Public Resources Code is added to read as follows: 25790. The Energy Conutission may, for the purposes of this chapter, purchase and subsequently sell, lease to another party for a period nor to exceed 99 years, exchange, subdivide, transfer, assign, pledge, encumber, or otherwise dispose of any real or personal property or any interest in property. Any such lease or sale shall be conditioned on the development and use of the property for the generation and/or transmission of renewable energy. 25791. Any lease or sale made pursuant to this chapter may be made without public bidding but only after a public hearing. SEC 31. Severability. The provisions of this Act are severable. If any provision of this Act, or part thereof, is for any reason held to be invalid under state or federal law, tate remaining provisions shall not be affected, but shall remain in full force and effect, 41 062 Version I (revised) SEC 32. Amendment The provisions of this Act may be amended to carry out its purpose and intent by statutes 1 approved by a two-thirds vote of each house of the Legislature and signed by the governor. SEC 33. Conflicting Measures (a) This measure is intended to be comprehensive. It is the intent of the People that in the event that this measure and another initiative measure relating to the same subject appear on the same statewide election ballot, the provisions of the other mei asure or measures are deemed to be in conflict with this measure. In the event this measure shall receive the greater number of affirmative vote, the provisions of this measure shall prevail in their entirety, and all provisions of the other measure or measures shall be null and void. l (b) If this measure is approved by voters but superseded by law by any other conflicting ballot measure approved by the voters at the same election, and the conflicting ballot measure is later held invalid, this measure shall be self-executing and given full force of law. t SEC 34. Legal Challenge ' Any challenge to the validity of this Act must be filed within six months of the effective I date of this Act. 41166980.1 42 063 0..3 A.USA LIGHT CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY. COUNCIL0 ( I FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES ++ V JM_DATE: SEPTEMBER 22, 2008 1 JJJ i !1 SUBJECT: ADDITIONAL COMPENSATION TO KEN THOMPSON, INC. FOR TRENCH MATERIAL REQUIRED ON PROJECT W-243, WATER TREATMENT PLANT WATER MAINS AND SEWER FORCE MAIN IN DAYBREAK DRIVE AND SAN GABRIEL CANYON ROAD IN THE CITY OF AZUSA. RECOMMENDATION It is recommended that the Utility Board/City Council approve the addition of $158,317.05 to the Ken Thompson, Inc. contract for construction of Project W-243, Water Treatment Plant Water Mains and Sewer Force Main in Daybreak Drive and San Gabriel Canyon Road. l BACKGROUND At its March 24, 2008 regular meeting, the Azusa Utility Board/City Council accepted the Ken Thompson, Inc. (KT) bid of $1,580,876.00 to construct Project W-243, Water Treatment Plant Water Mains and Sewer Force Main in Daybreak Drive and San Gabriel Canyon Road in the City Of Azusa. The project was bid using standard trench backfill and repair for the installation of the 18 -inch and 24 -inch pipelines in San Gabriel Canyon Road. The project was to proceed June 19. On July 15, KT was asked by the City Engineer to use 1 -sack cement sand slurry as trench backfill in San Gabriel Canyon Road, and ALW agreed that the contractor would submit a cost estimate and begin slurry backfill the next week. KT sulimitted a cost estimate Friday, July 18 of $569,804. Monday, July 21, the City Engineer agreed that this cost was too high, and the contractor was told to use standard backfill. KT already had pipe delivered and had cut trenches i and was allowed to use slurry until standard backfill material could be scheduled. 600 LF of pipe was installed using sand slurry backfill for the total amount of $158,317.05, including credits. FISCAL IMPACT This request has a fiscal impact of $158,317.05 to be funded from the Capital Improvement Program Budget Account No. 32-80-000-721-7130/72107B-7130. Prepared by: Chet Anderson, Assistant Director- Water Operations 064 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES JJJ 6 DATE: SEPTEMBER 22, 2008 SUBJECT: ADDITIONAL COMPENSATION TO WREN & ASSOCIATES FOR INSPECTION ON PROJECT W-245 WATER -MAIN REPLACEMENT IN FIRST STREET, ET AL, IN THE CITY OF AZUSA. RECOMMENDATION I It is recommended that the Utility Board/City Council approve the addition of $9,500 to the Wren & Associates Contract for Inspection Services on Project W-245 water main replacement in First Street, et al. BACKGROUND At its regular meeting on March 24, 2008, the Utility Board approved a $21,000 Professional Services Contract with Wren & Associates to perform inspection of water pipeline installation for project W-245, First Street, et al. There have been unanticipated delays due to (1) the time required to obtain approval of a traffic control plan from the'City of Irwindale which delayed the project for sixty days, and (2) inexcusable delays caused by the construction contractor which are expected to add about seven calendar days to the project and result in approximately $3,500 in liquidated damages. Because of the additional time required on the project as a result of these delays, an additional $9,500 is necessary to compensate Wren & Associates for additional time spent on the project. FISCAL IMPACT This request has a fiscal impact of $9,500. The additional 'payments to Wren approved will be funded from the Capital Improvement Program Budget Account 32-80-000-721-7130/7210713- 7130. A portion of the expenses will be offset by revenues from liquidated damages assessed on the construction contractor. i J Prepared by: Chet F. Anderson, P.E., Assistant Director- Water Operations 065 r% .-, m.00 CONSENT CALENDAR I TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA BOARD AND AZUSA CITY COUNCIL I FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 22, 2008 SUBJECT: REQUEST FOR PROPOSAL FOR SOLID WASTE CONSULTANT SERVICES I RECOMMENDATION UTILITY It is recommended that the Utility Board/City Council authorize staff to solicit proposals from qualified solid waste and recycling consultants to analyze our' contract with Athens Services and make recommendations pursuant to the study. j BACKGROUND In January 2008, the Utility Board held a study session on solid waste and recycling to consider various challenges the city will face in this area over the next five to ten years. The main issues of concern include ensuring long term disposal, maintaining adequate waste diversion, and controlling costs into the foreseeable future. 1� i While staff met with Athens Services to discuss some of these items, it is apparent that Athens Services wants to maintain certain contract provisions that would require the City to send all of its waste to Athens' Material Recovery Facility in the City of Industry during the term of the City's agreement. Since the contract term extends each year by one year, the commitment the City has to Athens' Material Recovery Facility is indefinite. Given the imminent closure of Puente Hills landfill in 2013, it is uncertain whether our current contract with Athens is the best service arrangement. j To assess the contract with Athens Services and research alternatives and the various costs thereof, it is recommended that the City issue the attached Request for Proposals (RFP). The RFP seeks proposals from qualified consultants to review our contract with Athens Services, and the existing and future solid waste hauling and disposal environment in order to forecast costs for different service options. The RFP calls for the consultant to make recommendations to the City MM on whether we should negotiate changes to our current contract or pursue other alternatives. FISCAL IMPACT The fiscal impact of this proposed study will be reported following receipt of proposals in response to our RFP. Prepared by: Joseph F. Hsu, Director of Utilities Cary Kalscheuer, Assistant to the Director of Utilities 067 REQUEST FOR PROPOSALS (RFP) SOLID WASTE AND RECYCLING ECONOMIC AND STRATEGIC STUDY I I September _, 2008 Introduction In October 2000, the City of Azusa entered into a new exclusive franchise agreement with Athens Services to collect all waste in Azusa (residential, commercial and industrial) and process it through Athens Services' material recovery facility (MRF)' The City seeks to have a third party consultant review the franchise agreement in view of changing environmental circumstances to generally assess the viability and flexibility "of the agreement with respect to meeting future solid waste challenges and controlling costs. I This is a request for proposals from consultants to conduct an economic and strategic study to advise the City on the means and alternatives to (1) control long term costs/rates to the maximum extent practicable; (2) ensure long term disposal of waste; (3) ensure compliance with various recycling and hazardous waste laws; and (4) generally meet the service needs of solid waste customers in a reliable and professional manner in compliance with various regulations and applicable laws. y General factors to be considered as part of the consultant study shall include, but not be limited to, the following: I • Projected long term disposal costs, including costs following closure of Puente Hills landfill, and impacts on MRF processing, waste transfer and disposal costs • Waste reduction mandates, such as the California Integrated Waste Management Act of ! 1989, and more recent regulations regarding universal waste and sharps disposal • Current and forecasted costs to continue MRF processing of mixed waste • Cost effectiveness to implement and operate residential source separated recycling program • Estimated cost to divert waste from landfills using waste to energy facilities, Puente Hills MRF, and any other relevant facilities • Current and latent contract constraints to direct where waste is taken in the future Scope of Work Y 1. Review current contract with Athens Services in detail, including terms, conditions and restrictions. ' 2. Explore solid waste disposal and non -disposal facilities that will most likely be used in the future by Athens Services. I 3. Create a 5 and 10 year cost and rate forecast based on current contract terms and expected disposal / waste transfer costs. I I Azusa Request for Proposals I Page 1 ! 068 4. Review other types of recycling program options, existing and future disposal, MRF and transfer facilities and contract service arrangements that are currently available or may be available in the future. Interview various haulers and facility operators to gather pertinent information related to existing and future costs and rates. Include consideration of various service arrangement based on your experience and expertise, for example, franchised and non -franchised hauling arrangements for different sectors of waste stream, source separated recycling programs versus centralized processing; consider transformation and conversion technologies and waste diversion anticipated by such programs or as may be required through new legislation in the future. 5. Based on you review of alternatives in Item 4, create a 5 and 10 year cost and rate forecast which can be compared to cost and rate forecast under existing Agreement with Athens Services (Item number 3). 6. Include in cost and rate forecast a discussion of the Pros and Cons for Exclusive and Non -Exclusive Franchise Agreements, Pros and Cons of competitive bidding, anticipated legislative changes, the closure of Puente Hills Landfill, the Puente Hills MRF, truck transfer versus Rail Haul, and how yard waste will be diverted in the future. 7. Make recommendation as to the viability of the current contract and whether it is sufficiently flexible to allow the City to meet future challenges in a cost competitive environment. For example, should Azusa continue current contract and services or negotiate changes to our contract and if so, what changes are recommended? Should we develop and issue a bid specification for services and if so, for what type of services, and for which service sectors, residential, commercial, industrial? Deliverables 1. Three copies of Draft written report, including executive summary, background, consultant methodology, description of program options considered, cost and rate forecast of program options, cost -benefit comparison of respective program options, discussions, findings and recommendation, and references to sources of information. 2. Final Draft Written report which incorporates any appropriate changes following review by City staff. Available Information The following information can be made available to the selected consultant: 1. Monthly reports from Athens Services on amounts disposed by each customer class. 2. Monthly service level reports for each Commercial and Multifamily customer classes. 3. Quarterly and annual MRF waste diversion report. 4. AB 939 Annual Reports Azusa Request for Proposals Page 2 HE Oualifications 1. Consultant must be familiar with San Gabriel Valley and solid waste industry serving the Valley. I 2. Consultant must be familiar with the Los Angeles County Sanitation Districts' Waste -by - Rail Project, conversion technology (CT) facilities and waste transfer logistics. 3. Consultant must have solid understanding of cost to MRF process waste, transfer waste, and detailed understanding of operating costs associated with providing solid waste collection and recycling services to various customer service sectors using a variety of service options. 4. Consultant should have public agencies its primary clientele and no financial relationship with Athens Services located in the City of Industry, California. J I 5. Consultant should be able to complete study within 60 days following approval. The approval process will likely take at least 30 to 45 days from date proposals are due. Proposal Requirements 1. Consultant must be willing to execute Professional Services Agreement with the City of Azusa. 2. Consultant must provide three copies of original proposal to the City. i 3. Consultant must be willing to participate in an oral interview since top candidates will be screened and selected for such an interview. I 4. Proposals must be received by 5:00 p.m. on October A , 2008, at the following location: I Mr. Cary Kalscheuer Azusa Light & Water 729 N. Azusa Avenue Azusa, CA 91702 5. If you have any questions about this Request for Proposals, please call above at telephone (626) 812-5174. i i 6. No FAX copies will be considered. 7. A qualifications statement should be included in Consultant Proposal along with a list of at least three references to whom you provided similar professional services to recently. w Attachments i Azusa Solid Waste / Recycling Information Rate Schedule Professional Services Agreement Azusa Request for Proposals Page 3 , 070 Supplemental Solid Waste Information • The City's Utility bills for Residential services and Athens Services bills for Commercial and Industrial Services. • Azusa has about 7,700 Single family residential customers that use manual barrels to dispose of waste. From April 2007 to March 2008, these customers disposed of about 15,000 tons of waste. Yard waste is separated by residents and direct hauled to the Puente Hills landfill where it is used as an Alternative Daily Cover (ADC) material. From April 2007 to March 2008, about 2,900 tons of yard waste was hauled to Puente Hills landfill. Current landfill disposal costs are $14.30 per ton for yard waste. This ADC option is likely to end in 2013 when the Puente Hills landfill closes. Residential mixed waste is taken to Athens Services' MRF where recyclables are removed from the waste stream at current cost of $64.42 per ton. This per ton rate includes $22.07 per ton for disposal at Puente Hills landfill.(75% X $29.42 per ton). Waste Residue from the MRF is either delivered to Puente Hills landfill or Commerce Refuse to Energy Facility. Multifamily residential waste is collected using bins and is hauled to Athens' MRF where recyclables are removed. From April 2007 to March 2008, about 6,100 multifamily residential bin customers disposed of about 8,800 tons of waste. Waste Residue from the MRF is either delivered to Puente Hills landfill or Commerce Refuse to Energy Facility. Multifamily residential customers are billed individually through the utility billing system on a per dwelling unit basis, not according to a commercial bin rate schedule. • Commercial bin customers disposed of about 14,200 tons of waste from April 2007 to March 2008. All of this waste went to Athens' MRF. Industrial waste or roll -off waste is either hauled to Athens' MRF or to an inert landfill. Customers are charged a collection cost plus a per ton charge based on destination and weight. About 9,000 tons of industrial waste was collected by Athens Services from April 2007 to March 2008. By contract Athens Services is required to divert 13,000 tons per year through its MRF. Given City's approved base year tonnage and other recycling programs, this MRF diversion has been adequate for the City to maintain a waste diversion rate around 55% per year, however, the 13,000 tons per year is a minimum and Athens has not increased diversion beyond the 13,000 ton minimum since October 2000. Azusa Request for Proposals Page 4 071 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL I FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES0 rf����p 1 DATE: SEPTEMBER 22, 2008 SUBJECT: PURCHASE OF ELECTRIC METERS RECOMMENDATION + It is recommended that the Utility Board/City Council approve the purchase of 96 electric meters from McAvoy and Markham Sales Company in the amount of $23,237.77. i BACKGROUND i The Electric Division's Meter Test Shop has recognized the need for an electric meter replacement program involving commercial and industrial customers and has identified 96 meters that are obsolete mechanical meters with register gears that are now failing. These meters need to be replaced to insure accuracy on the reads and avoid any billing errors with the customers. Three competitive quotes were solicited from local vendors with the lowest received from McAvoy and Markham Sales Company in amount of $23,237.77. The other two quotes were from the Gorman Company in amount of $27,712.00, and Itron, Inc. in amount of $38,575.97. 1 FISCAL IMPACT The purchase amount of $23,237.77 is budgeted in the Electric Division's Meter Shop's Operating g eratin budget under account 33-40-733-700-7140. Prepared by: Dan Kjar, Electric Operations Supervisor 072 AML i CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL I FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 22, 2008 SUBJECT: PURCHASE OF REPLACEMENT ELECTRIC METER TEST SYSTEM RECOMMENDATION It is recommended that the Utility Board/City Council approve the purchase of a WECO three phase electric meter test system from McAvoy and Markham Sales Company in the amount of $45,325. BACKGROUND j All electric meters installed into the electric system are tested for accuracy and the test results are stored on file. The existing meter test board was manufactured by RFL and purchased in 1991. The RFL test board is no longer being manufactured and has become obsolete and even maintenance is difficult due to the lack of available replacement parts. There is only one meter test board that may be purchased which will interface with all the existing RFL files, and will integrate with existing test equipment used by the Electric Division's Meter Test Shop. The manufacturer is Watthour Engineering Company ( WECO ) and their meter test boards are sold only thru one vendor in Southern California, McAvoy and Markham. The WECO test board is endorsed by Southern California Edison and the City of Los Angeles' Department of Water and Power. Since the test board is only available from one vendor, the WECO meter test board will be purchased pursuant to Azusa Municipal Code (AMC) section 2-523 (d) which authorizes purchases from sole sources when no competitive market exists. FISCAL IMPACT i The purchase amount of $45,325.00 is budgeted in the Electric Division's Meter Shop Operating Budget under account 33-40-733-700-7140. 1 Prepared by: Dan Kjar, Electric Operations Supervisor l 073 CONSENT CALENDAR 1 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY, COUNCIL 1 � ( � FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES ✓✓ R(�`� --�j jo)ep6t � v DATE: SEPTEMBER 22, 2008 SUBJECT: ACCEPTANCE OF GRANT AND REPLACEMENT OF EASEMENT FROM NORTHROP GRUMMAN SYSTEMS CORPORATION RECOMMENDATION It is recommended that the Utility Board/City Council accept a Grant of Easement by way of the attached Resolution for the subject location and authorize the Mayor to execute the easement and the City Clerk to file it in the Office of the Los Angeles County Recorder. The recordation of said Easement is contingent upon the full execution of the Addendum to Option and Settlement Agreement by and between the City, Northrop Grumman, CEMEX, and Azusa Land Reclamation Company ("ALR"). i BACKGROUND On February 28, 2006, in connection with a period of heavy rainfall, a portion of Northrop's property adjacent to CEMEX's gravel mining site and a portion of the CEMEX property subsided and collapsed. The slope failure also damaged a portion of the City's water line and the City has been working with various parties since that time to secure a new easement on Northrop's property so that the waterline could be re-routed and safely installed underground. The easement documents have been prepared and are attached for your consideration and approval. As you may recall, some interim measures were taken to install a temporary above ground waterline immediately following the slope failure back in 2006 and that waterline continues to be used. Parties involved in this matter, Northrop, CEMEX, ALR and the City, entered into an agreement regarding compensation for damages caused by the slope failure, and the agreement is referred to as the Option And Settlement Agreement. Since the date of the Option And Settlement I Agreement, there has been further erosion of portions of the Northrop property and as a result, i 074 the parties had to develop and enter into an Addendum To Option And Settlement Agreement to provide for further compensation for the additional damage. All of the parties have executed the Addendum except for ALR but execution by ALR is anticipated. The Grant of Easement from Northrop to the City is for a new permanent waterline to replace the previous waterline that was damaged. Northrop has stated that it will formally grant the easement for the waterline after it is assured that all of.the parties have executed the Addendum which will compensate Northrop for the additional damage to its property. Therefore, once the Addendum is executed by all parties involved, Northrop will formally grant to the City the permanent easement for City's waterline facilities as described in the Grant of Easement and the Grant of Easement can then be recorded. Attached herewith is the Grant of Easement for the waterline facilities located in Northrop's property. This easement will be used for right-of-way access in the operation & maintenance of waterline facilities installed in Northrop's property as well as for the installation of said waterline. FISCAL IMPACT Costs associated with the processing of this grant of easement will be home by the Water Utility. Prepared by: Bob Tang — Assistant Director Resource Management 075. RESOLUTION NO. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING A CERTAIN GRANT AND REPLACEMENT OF EASEMENT AND DIRECTING THE RECORDATION THEREOF. ' THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Northrop Grumman Systems Corporation has granted to the City of Azusa that certain Grant And Replacement Of Easement, dated September 5, 2008 for a perpetual, nonexclusive easement and right of way in, over, under, along, through and across that certain real property of Northrop situated in the City of Azusa, County of Los Angeles, State of California as more particularly described in the Grant of Easement attached hereto as Exhibit "A" and incorporated herein by reference. The easement granted by the Grant of Easement is solely for waterline purposes and the City shall have the right to lay, construct, use, operate, maintain, repair and reconstruct an underground water pipeline, together with all fittings or structures normally incident and appurtenant thereto. 1 Said Grant of Easement, as set forth in Exhibit "A," is hereby accepted and the City Clerk is hereby authorized and directed to cause the same to be filed for record in the office of the County Recorder of said County and to take any and all action as may be required for recordation of said easement including, but not limited to, any and all rights and obligations between Northrop and the City in connection with the execution and implementation of that certain Addendum To Option And Settlement Agreement dated August 26, 2008. 1 SECTION 2. The City Clerk shall certify to the adoption of this Resolution. 1 PASSED, APPROVED AND ADOPTED THIS i day 1 Joseph Rocha, Mayor ATTEST: Vera Mendoza, City Clerk I HEREBY CERTIFY that the foregoing Resolution was duty 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 September, 2008. 1 AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Vera Mendoza, City Clerk 076 RFC'ORDING REQUF-S-1 ED BY AND ki'I IIiN RECORDED RETURN TO: The Cin• of AZusa Light and Water Department 7_19 N. Azusa Ace P.O. Bos 900 AZusa. CA 91702 No Recording Fee Due Per Government Code `6103 GRANT AND REPLACEMENT OF EASEMENT FOR VALUABLE CONSIDERATION, receipt of which is acknowledged, NORTHROP GRUMMAN SYSTEMS CORPORATION, a Delaware corporation ("Grantor"), does hereby grant to the CITY OF AZUSA, a municipal corporation ("Grantee"), a perpetual, non-exclusive easement and right-of-way ("Easement") in, over, under, along, through and across that real property situated in the City of Azusa, County of Los Angeles, State of California, more particularly described in Exhibit A attached hereto and incorporated herein by this reference ( the ..Property"). The location and general depiction of the Easement on the Parcel is more particularly described in Exhibit B attached hereto and incorporated herein by this reference ("Easement Area"). This Easement hereby granted by Grantor is and shall be solely for water pipeline purposes and Grantee shall have the right to lay, construct, use, operate, maintain, repair and reconstruct an underground water pipeline, together with any and all fittings or structures normally incident and appurtenant thereto ("Authorized Use and Work"). This Easement hereby granted by Grantor includes the rights of Grantee, and its officers, agents. employees, and contractors upon reasonable prior notice to Grantee to: (1) enter upon and to pass and repass over and along the Property as reasonably necessary for the Authorized Use and Work. This Easement hereby granted by Grantor excepts and reserves unto Grantor the right to landscape (other than deep root trees). pave on, over and across the Easement Area. provided such landscaping or impro%enhents do not unreasonably interfere with the rights of Grantee to perform any Authorized Use and Work. Grantor acknoniedges and agrees that Grantee has the richt to renim e any landscaping or improvement on the Easement Area if and to the extent that Grantee determines, in its reasonable discretion, is necessary to perform the Authorized Use and Work and that, in such event. Grantee shall be required to restore the Parcel or the Easement Area to its condition prior to performing the Authorized Use and Work. 077 I 3 i Grantce shall at all times maintain the water pipeline in good condition and repair consistent x�ith its intended use and function. Grantor.'shall have no responsibility l01- such maintenance or repair to the eater pipeline or liabilitjresulting from the Easement. The covenants of this Easement shall run kith the'land and shall constitute benefits and burdens inuring to Grantor and to Grantce and their resp ctsors. assigns and heirs. WITNESS ni hand this day of .2008. i 1 NORTITROP G 1IAN SYSTEMS CORPORATION. - a Delawarz co o tion A.J. Paz, �; Director, Corporate Real Estate 1 "Grantor" WITNESS nay hand this day of 1 2008. i CITY OF AZUSA, , a California municipal Corporation By: 1 Joseph R. Rocha, Mayor Grantee I ni i State nl California ) Counq of On 5 �f 5 ,14 . %C;cihefore mt. �q//];��; ./��z<S Notary Public. _ ) (here insert nwne and Title oftlic ullieer) personally appeared%' /'c /lljy J • ���> - — --- - — who proved to me on the basis of' satisfactory evidence to be the person(s) whose namc(syls6are subscribed to the within instrument, and acknowledged to me thatTie;sshe/they executed the same itTiiis<her/their authorized capacity(ies), and that b�Aier/their signature(s) on the instrument the person(s), or the entity upon behalf ol'which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature State of California ) County of ) 130 before me, (here insen nwne and title of the anicer) (seal) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacitv(ies), and that by his/her/their signature(s) on the instrument the person(s). or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (,cal) 079 AGENDAITEM I TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL 3 FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE� DATE: SEPTEMBER 22, 2008 i SUBJECT: AMENDMENT OF AZUSA LIGHT & WATER RULES AND REGULATIONS TO ADD RULE NO. 21 REGARDING WATER CONSERVATION RECOMMENDATION It is recommended that the Azusa Utility Board/City Council adopt attached resolution to add "Rule No. 21— Water Conservation" to Azusa Light & Water Rules and Regulations. BACKGROUND On June 16, 2008, the City Council adopted Ordinance No. 08-06 which amended various sections of the Azusa Municipal Code related to water conservation. In summary' the amendment: (1) broadened justification for declaring phasedkwater shortages; (2) eliminated water conservation reduction percentage requirements; (3) authorized imposition of a drought charge on excess water users; (4) added a new phased water shortage to allow outdoor watering I three days per week; and (5) clarified language of various water conservation measures so j requirements were easier to understand. The Azusa Municipal Code is pertinent to thejurisdiction of the City of Azusa, however, the Utilities Department uses Rules and Regulations to govern utility services rendered outside of the incorporated areas of the City of Azusa. Because of the significance of the City's water conservation ordinance, it is important to establish consistency between the City's Municipal Code and the Rules and Regulations with respect to enforcing water conservation requirements both inside and outside the City of Azusa. Toward this end, staff has drafted the attached "Rule No. 21 -- Water Conservation" based on the language of Ordinance No. 08-06, and recommends it be adopted by attached resolution which will add it to Azusa Light & Water's Rules and Regulations. FISCAL IMPACT s None. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities 1 080 RESOLUTION NO. A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA TO AMEND AZUSA LIGHT & WATER RULES AND REGULATIONS TO ADD RULE NO. 21 REGARDING WATER CONSERVATION. WHEREAS, on June 16, 2008, the Azusa City Council adopted Ordinance No. 08-06 which amended Division 6 of Article VI of Chapter 78 of Azusa Municipal Code in order to clarify mandatory water conservation requirements imposed on customers of the water utility; and WHEREAS, Azusa Light & Water serves areas outside of the incorporated area of the City of Azusa, including areas in the City of Glendora, the City of Covina, the City of West Covina, the City of Irwindale, and the unincorporated areas of Los Angeles County, which are beyond the jurisdiction of the Azusa Municipal Code; and WHEREAS, Azusa Light & Water uses utility Rules and Regulations to govern services rendered by the water utility in its service territory, including those areas located outside of the City of Azusa; and WHEREAS, it is important to administer water conservation requirements amongst all water utility customers in a fair and equitable manner consistent with the requirements included in the Azusa Municipal Code. NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES FIND AND DECLARE THAT: SECTION 1. Adoption of Water Rule No. 21. The City Council/Utility Board hereby adopts amendment to the Water Rules to include Rule No. 21 as part of the Azusa Light & Water's Rules and Regulations as set forth in Exhibit "A" which is attached to this Resolution and made a part hereof. SECTION 2. Effective Date. The amendment to Azusa Light & Waer Rules and Regulations shall become effective on September 1, 2008. PASSED, APPROVED AND ADOPTED this 22nd day of September 2008. Joseph R. Rocha Mayor e ATTEST: Vera Mendoza City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I 1 I, Vera Mendoza, City Clerk of the City of'Azusa, do hereby certify that the foregoing Resolution No. was duly introduced and adopted at a regular meeting of the Azusa Utility Board/City Council on the 22nd day of September 2008, by the following vote, to wit: I AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ' i Vera Mendoza City Clerk 082 WATER UTILITY RULE NO. 21 WATER CONSERVATION A. DEFINITIONS: The following words, terms and phrases, shall have the meanings ascribed to them under this Rule, except where the context clearly indicates a different meaning: Commercial and public agency water user includes: (1) any water user or customer conducting business, either retail, commercial, or industrial; and (2) any water user that is a public or governmental entity, such as the state government, school district, community college, the county, city or municipal government, or special district. Excess runoff means water accumulation on streets, gutters, neighboring properties or other surfaces in an amount sufficient to cause flow. Residential water user means water customers that pay for water service to their individual residential dwelling unit and any water user that owns or manages residential property for rent or lease including homeowner associations. Upper basin means the underground aquifer located in the city of Azusa north of Sierra Madre. Water user means any person, customer or property served within the incorporated boundaries of the city and the area outside the city boundary served by the city water titility. Water utility means Azusa Light & Water's water utility. B. APPLICABILITY: This division shall apply to all water users within the service area of Azusa Light & Water. C. WATER USER RESPONSIBILITY: Water users are deemed to have under control at all times their water distribution and facilities and to know the manner and extent of their water use and excess runoff. In multiple dwellings, the owner is the water user in control of the premises and is in control and responsible for the water usage. 1. Phase I water shortage Page 1 of 9 0 • (a) A phase I water shortage may be declared by the director of utilities if any combination of events or factors threaten the adequacylof foreseeable water supply to consumers; qualifying factors to be considered in making a water shortage declaration include, but are not limited to, time of year, local' rainfall, State Water Project Allocations, Safe Yield as determined by the San Gabriel Basin Watermaster, amount of runoff into the San Gabriel and Morris dams, ground water level in different basins, especially the upper basin, and any major operating emergencies or natural disasters that cause damage to the water supply or water distribution system. Prior to making a public announcement of a phase I water shortage, the director of utilities shall document the basis for the water shortage declaration and communicate this information to the city manager and city council. Under a declared Phase I water shortage, conservation measures listed in this Rule section shall be implemented. No water user within the water utility's service area shall knowingly make, cause, use or permit the use of water for residential, commercial, industrial, agricultural or any other purpose in a manner contrary to this division or in any amount in excess of that use permitted by the conservation phases designated in this Rule. Mandatory water conservation measures shall be as follows: I (1) No water user shall cause or permit excess runoff to occur from any hose, pipe, valve, faucet, sprinkler or irrigation device onto any sidewalk, street or gutter or to otherwise escape from the property if such flow or runoff can reasonably be prevented. (2) If a break or leak occurs within the water user's plumbing or private distribution system, the leak shall be repaired within 48 hours after the water user discovers the leak or after the water user is notified of the leak. (3) Commercial and noncommercial watering of grass, lawns, ground cover, open ground, shrubbery, crops, gardens and trees, including agricultural irrigation, in a manner or to an extent which allows excess runoff from the area being watered shall not be permitted. Runoff which is a natural consequence of conservative watering, either by hand or mechanical sprinkling facilities, is permitted so long as such runoff is not excess runoff as defined in the Definitions section of this Rule. (4) There shall be no lawn watering and landscape irrigation by residential water users between the hours of 6:00 a.m. and 6:00 p.m. on any day of the week. If a hand-held hose with a positive shutoff nozzle or drip irrigation system is used, watering may be done at any time. (5) There shall be no lawn watering and landscape irrigation by Commercial and public agency water users between 10:00 a.m. and 6:00 p.m' on any day of the week, except that there shall be no restriction of watering utilizing a hand held hose with a positive shutoff nozzle, drip irrigation system, or system which uses reclaimed or recycled wastewater. 1 (6) There shall be no washing down of sidewalks, walkways, driveways, parking lots and all other paved surfaces, except to alleviate immediate health, fire or sanitation hazards. 1 (7) Restaurants and food serving establishments shall only serve water to their customers upon request of each customer, and shall not operate a water hose without a positive shutoff nozzle. Restaurants and food serving establishments provided with public i _ 1 Page 2 of 9 084 information by the water utility about a water shortage shall post the information so that it is made available to customers. (8) It is unlawful to remove, replace, alter or damage any water meter or any components thereof, including but not limited to the meter face, its dials or other water usage indicators and any flow -restricting device installed. (9) Water from fire hydrants shall not be used for any purpose other than to fight fires or for other activities where such use is immediately necessary to maintain the health, safety and welfare of the residents and customers in the water utility's service area. Metered water use for control of dust and at construction sites shall be considered necessary to maintain health and safety and are eligible uses of water from fire hydrants. (10) Schools, golf courses, governmental agencies, city parks and cemeteries, public or private, are required to reduce the amount of water used for irrigation purposes to levels sufficient to maintain plant life or public use thereof. Excessive use of irrigation systems for long periods of time is prohibited and may be determined by the frequency and duration of irrigation activity, water saturated or overly soft turfs, lawns, and soils, or pooling of water on turfs, lawns, or soils. Water users may be required to submit a copy of a water conservation plan and landscape irrigation schedules. (11) Washing of motor vehicles, trailers, boats and other types of equipment shall be done only with a hand-held bucket or a hose equipped with a positive shutoff nozzle for quick rinse, except that washing may be done with reclaimed wastewater or by a commercial car wash using recycled water. No excess runoff shall result from such activities as defined in Section A of this Rule. (12) No water shall be used to clean, fill or maintain levels in decorative fountains, ponds, lakes or other similar aesthetic structures, unless such water is part of a recycling system. (13) The filling or replenishment of swimming pools shall be permitted, but the property owner will -be liable for possible charges in the event a phase II, III or phase IV drought is declared. (14) The owner and operator of every hotel, motel, inn, guest house and short-term commercial lodging shall post a notice of water shortage and any necessary compliance measures. (b) Azusa Light & Water shall publish the declaration of a Phase I water shortage in a local newspaper of general circulation. 2. Phase II water shortage. (a) A phase II water shortage may be declared by the director of utilities if any of the conditions for a phase I water shortage are met, and it has been determined that there is need to reduce water consumption by up to ten percent (10%) based on available water supply and demand information. Prior to making a public announcement of a phase II water shortage, the director of utilities shall document the basis for the water shortage declaration and communicate this information to the city manager and city council. Under a declared phase II water shortage the following conservation measures shall be implemented: Page 3 of 9 1 1 (1) Conservation measures in effect during a Phase Ilwater shortage, except that the restrictions on watering lawns, landscapes and other turf,areas shall be modified to limit watering by residential water users to 6:00 p.m. starting on Tuesdays, Thursdays and Sundays until 6:00 a.m. the following day for customes with a street address number ending in an even number (0,2,4,6 or 8), and to 6:00 p.m. starting on Mondays, Wednesdays and Saturdays until 6:00 a.m. of the following day for customers with a street address number ending in an odd number (1,3,5,7 or 9). If a hand-held hose with a positive shutoff nozzle or drip irrigation system is used, watering may be done at any time on the designated days. (2) Lawn watering and landscape irrigation by Commercial and public agency water users shall be limited to 6:00 p.m. starting on Mondays,, Wednesdays and Fridays until 10:00 a.m. of the following day, except that there shall be no restriction of watering utilizing a hand held hose with a positive shutoff nozzle, drip irrigation system, or system which uses reclaimed or recycled wastewater. (3) If a phase II water shortage is declared, water users will be subject to the drought charge pursuant to section E of this Rule. (b) Azusa Light & Water shall publish the declaration of a Phase II water shortage in a local newspaper of general circulation, including the drought charge and implementation date of the declaration. 3. Phase III water shortage. 1 (a) A phase III water shortage may be declared by the director of utilities if the conditions for a phase I water shortage are met, and it has been determined that there is need to reduce water consumption by up to twenty percent (20%) based on available water supply and demand information. Prior to making a public announcement of a phase III water shortage, the director of utilities shall document the basis for the water shortage declaration and communicate this information to the city manager and city council. Under a declared phase III water shortage the'following conservation measures shall be implemented: (1) Conservation measures under a Phase I water shortfall declaration shall be in effect, except that the restrictions on watering lawns, landscapes and other turf areas shall be modified to limit watering by residential water users to 6:00 p.m. starting on Thursdays and Sundays until 6:00 a.m. the following day for'customers with a street address number ending in an even number (0,2,4,6 or 8) and to 6:00 p.m. starting on Wednesdays and Saturdays until 6:00 a.m. of the following day for customers with a street address number ending in an odd number (1,3,5,7 or 9). If a hand-held hose with a positive shutoff nozzle or drip irrigation system is used, watering may be done at any time on the designated days. (2) Lawn watering and landscape irrigation by Commercial and public agency water users shall be limited to 6:00 p.m. starting on Mondays and Fridays until 10:00 a.m. of the following day, except that there shall be no restriction of watering utilizing a hand held hose with a positive shutoff nozzle, drip irrigation system, or system which uses reclaimed or recycled wastewater. Page 4 of 9 086 (3) If a phase III water shortage is declared, water users will be subject to a drought charge pursuant to section E of this Rule. (b) Azusa Light & Water shall publish the declaration of a Phase III water shortage in a local newspaper of general circulation, including the drought charge and implementation date of the declaration. 4. Phase IV shortages. (a) A phase IV water shortage may be declared by the director of utilities if the conditions for a phase I water shortage are met, and it is determined that there is a need to reduce water consumption by up to thirty percent (30%), based on available water supply and demand information. Prior to making a public announcement of a phase IV water shortage, the director of utilities shall document the basis for the water shortage declaration and communicate this information to the city manager and city council. Under a declared phase IV water shortage the following conservation measures shall be implemented: (1) Conservation measures listed in section 78-504 shall be in effect, except that the restrictions on watering lawns, landscapes and other turf areas shall be modified to limit watering by residential water users to 6:00 p.m. starting .on Sundays until 6:00 a.m. the following day for customers with a street address number ending in an even number (0,2,4,6 or 8), and to 6:00 p.m. starting on Saturdays until 6:00 a.m. of the following day for customers with a street address number ending in an odd number (1,3,5,7 or 9). If a hand-held hose with a positive shutoff nozzle or drip irrigation system-isused, watering maybe done at any time on the designated day. (2) Lawn watering and landscape irrigation by Commercial and public agency water users shall be limited to 6:00 p.m. starting on Mondays until 10:00 a.m. of the following day, except that there shall be no restriction of watering utilizing a hand held hose with a positive shutoff nozzle, drip irrigation system, or system which uses reclaimed or recycled wastewater. (3) If a phase IV water shortage -is declared, water users will be subject to -a drought charge pursuant to section E of this Rule. (b) Azusa Light & Water shall publish the declaration of a Phase IV water shortage in a local newspaper of general circulation, including the drought charge and implementation date of the declaration. D. REQUEST FOR RELIEF FROM COMPLIANCE: 1. A water user may file a written request for relief from compliance with the various programmatic water use restrictions of this division to the director of utilities. The director of utilities may delegate his duties and responsibilities for review of "Relief Requests" under this section as appropriate. 2. The Relief Request may include a'request that the water user be relieved,,in whole or in part, from the water use restrictions in effect during a declared water shortage. A water user may not apply for relief from the drought charges in section E of this Rule. Page 5 of 9 pry 00( 3. The Relief Request may include various justifications for exemption, including but not limited to the following: (a) Whether any additional reduction in water consumption will result in unemployment or significant loss of income from commercial or industrial activities; (b) Water uses during new construction; (c) Adjustments to water use caused by emergency health or safety hazards; (d) Water use necessary for reasons related to family illness or health. 4. In order to be considered, a water user must submit a written request for relief including the justification for such relief to the director'of utilities within 20 days from j the date of the publicized drought phase notice. No relief shall be granted unless the water user shows that the maximum practical reduction` in water consumption has been achieved by the water user. No relief shall be granted to any water user who, when requested by the director of utilities, fails to provide any information necessary for resolution of the water user's Relief Request. The decision to issue relief or exemption from certain rules or requirements shall be issued within` 15 days and provided in writing to the water user. 5. The decision may be appealed as set out in section F(c) of this Rule. i E. NOTICES, CITATIONS, PENALTIES, CHARGES, AND SERVICE TERMINATION. 1. Any employee of the water utility, or other employees as designated by the,dkector of . utilities, may issue citations for violations of this Rule_ Water users as defined in this, Rale-shall,be,presixined-to b6.the'violator;-The city will impose the following penalties.on violators of this Rule: r (a) If the director of utilities has declared a Phase I water shortage pursuant to this Rule, first-time violators, shall be provided with a courtesynotices e of the violation. Upon second and subsequent violations, the violator shal recerrive a citation and fine pursuant to the next paragraph. 1 (b) If the director of utilities has declared a Phase II, Phase III or Phase IV water shortage pursuant to this Rule, respectively, violators shall receive a citation and fine as C specified below on a form that describes the nature of the violation, the rule violated, the date on which it occurred and the corrective measures to be taken: (1) Residential Water Users i. For the first violation, $50.00. s ii. For the second violation, $100.00. A second violation is an infraction. iii. For the third violation, $200.00, along with the installation of a flow restrictor at the customer's expense. A third violation constitutes a misdemeanor. iv. For a fourth violation, $200, plus termination of water service. The water user shall also pay all utility service fees and reconnection charges in effect at the time of service termination in order to restore water service. (2) Commercial and Public Agency Water Users i. For the first violation, $100.00. ii. For the second violation, $300.00. A second violation is an infraction. iii. For the third violation, $600.00, along with the installation of a flow restrictor at the customer's expense. A third violation constitutes a misdemeanor. Page 6 of 9 1 088 1 iv. For a fourth violation, $600, plus termination of water service. The water user shall also pay all outstanding utility service fees and reconnection charges in effect at the time of service termination in order to restore water service. 2. During a declared Phase II, III, or IV water shortage, the city will impose a drought charge, per CCF (hundred cubic feet), in excess of a certain threshold for each water shortage Phase. Said threshold for each water shortage Phase shall be established by the director of utilities, at the time the drought charge is imposed. The threshold for each water shortage Phase will be established by taking into account the following factors: (1) declared water shortage Phase; (2) amount of water conserved by water users; (3) month of year and seasonal variations in water demand by different types of water users; (4) average water consumption by customer class as determined by meter size; and (5) tiered rate thresholds of existing Water Rate Schedule B in effect at the time a water shortage . Phase is declared. The rate per CCF (hundred cubic feet) for said drought charge shall be calculated in an amount in order to defray the following costs and expenses of implementing the conservation plan/program: (1) cost to provide public with notices and ongoing public education about the drought and water supply issues; (2) cost of equipment and staff time to administer and enforce water conservation measures of this Division; (3) costs associated with utility billing software modifications and bill presentment to manage the drought charges applied through this Division; (4) cost of water conservation programs which provide fixtures, devices, materials, equipment, or monetary incentives to water users to reduce water consumption. The amounts of said costs shall be determined at the time the drought charge is to be imposed. The following is an example of how the rate shall be calculated taking into account the above-mentioned costs and expenses: Total Anticipated Conservation Program Costs to Implement Water Shortage Phase (a) cost to provide public with notices and ongoing public education about the drought and water supply issues = $ 50,000 (b) cost of equipment and staff time to administer and enforce water conservation measures of this Division = $ 50,000 (c) costs associated with utility billing software modifications and bill presentment to manage the drought charges applied through this Division = $ 50.000 (d) cost of - water conservation programs which provide fixtures, devices, materials, equipment, or monetary incentives to water users to reduce water consumption = $ 150,000 _- Total = $ 300,000 Page 7 of 9 MM Divided by Total Anticipated Retail Water Consumption (in CCF) that is in Excess of the Threshold Established for the Applicable Water Shortage Phase= 250.000 ccf above a threshold of 40 ccf p _ $1.2 Per CCF Drought Charge 1 The per CCF drought charge shall not exceed 100% of the highest tier rate of all retail water service rates (Water Rate Schedule B) per CCF, which is, in effect at the time a water shortage Phase is declared. i Prior to applying any drought charge pursuant to this section, the director of utilities shall document the basis for the drought charge and the threshold level and communicate this information to the city manager and city council. e 1 Any drought charge imposed pursuant to this section shall be effective on the first of the month following publication of a water shortage declaration Phase. Drought charges shall be applied as a separate and distinct charge through the utility billing system and shall be paid to Azusa Light & Water and deposited into the water enterprise fund under a separate drought charge revenue account to be used solely to defray the costs associated with implementation of the conservation plan/program set forth in this Division through conservation activities referenced in this section. 3. Failure to pay any of the penalties or charges imposed through this Division may subject the water user or customer to termination of water service. If water service is terminated pursuant to this division, the department of utilities will not restore water j service until the director of utilities has determined that the customer has provided reasonable assurances that future violations of this division will not occur and that any unpaid penalties resulting from citations and any outstanding utility billing amounts an fines have been paid in full. I F. HEARING REGARDING VIOLATIONS. i I 1 1. Any water user receiving notice of a second or subsequent violation of this division shall have a right to a hearing by the director of utilities' 2. The water user's written request for a hearing must bye received within ten (10) days of the issuance of the notice of violation. This request 'shall stay installation of a flow- restricting device on the water user's premises and the imposition of any fines until the director of utilities renders his decision. Director's decision shall be issued within 15 days after the hearing, and a copy shall be provided to the water user. 3. The decision of the director of utilities may be appealed to the city manager by the water user filing with the city manager a written request for appeal within 15 days of receipt of the decision. Filing of such a request stays imposition of any fines or installation of flow restrictor. a I � Page 8of9 I 4. The appeal hearing will be scheduled to occur within a reasonable period of time following filing of the appeal. No formal rules of evidence apply. All evidence customarily relied upon by reasonable persons in the conduct of serious business affairs will be allowed, and the water user may present any such evidence which shows the alleged wasteful water use has not occurred. The decision of the city manager will be given in writing to the water user within 15 days after the appeal hearing, and that decision shall be final. G. ADDITIONAL MEASURES. The utility board of the water utility may order implementation of water conservation measures in addition to those set forth in this Rule. Such additional water conservation measures shall be implemented by resolution published one time in a daily newspaper of general circulation covering the service area of the water utility. Any prohibitions on the use of water shall become effective immediately upon such publication. H. EFFECT ON PUBLIC HEALTH AND SAFETY. Nothing in this Rule shall be construed to require the director of utilities to curtail the supply of water to any water user when such water is required by that customer to maintain an adequate level of public health and safety. I. AZUSA MUNICIPAL CODE. This Rule shall be consistent with Azusa Municipal Code Sections 78-501 through 78- 507 and Sections 78-510 through 78-515. Page 9of9 JULY & AUGUST PROGRESS PAYMENT REQUEST: MONTHLY REPORT TOTAL PAID TO DATE SEPTEMBER, 2008 PROJECT: MEMBRANE TREATMENT UPGRADE OF THE CANYON FILTRATION PLANT PROJECT NO.: WVF-207 GENERAL CONTRACTOR: SSC CONSTRUCTION INC. DESIGN ENGINEER: BLACK & VEATCH INC. CONSTRUCTION MANAGER: BLACK & VEATCH, INC. PROJECT CONTRACT AMOUNT: $35,905,500.00 CHANGE ORDERS TO DATE: $100,642.76 10 DAYS $164,975.54 14 DAYS $57,261.33 4 DAYS $22,693.21 0 DAYS $9,454.31 24 DAYS MONTHLY ACTMTIES Construction progress meetings were held Jul 31, Aug 14, Aug 28 & Sep 11 As of 9117108 24" SGVMWD plant feed pipe and risers installed Various plant piping and electric conduit installed DYK reservoir ready for color coat Reservoir finished water feed pipe installed Various plant piping being painted ' Membrane Building roof and roof covering over chemical feed pumps installed O&M Exterior and interior finish work continues JULY & AUGUST PROGRESS PAYMENT REQUEST: $1,579,423.77 TOTAL PAID TO DATE $31,321,139.29 AMOUNT TO ESCROW* $2,189,109.46 PROJECT PERCENT COMPLETE 86.38% C) cc iV $36,260,527.15 Approved July 23, 2007 Approved Sept 24, 2007 Approved Nov 26, 2007 Approved Feb 25, 2008 Approved July 28, 2008 JULY PTD $29,741,715.52 *Fixed amount v N I Prole Staff is providing an update of the projects listed below that were started in the past 12 months: ® Garnet Wind Project ® Metropolitan Water District Power Purchase vmyi Agreement ® Lodi Energy Center ® Transition to Riverside Real Time Scheduling and the New CAISO Market Activities .:�xe a)0-1 - i-1pc�c.� ��'y� ® Feasibility Studies for San Gabriel Valley Municipal Wates District u ry ® Electric Rate Studies I Ah i ® U7004 WAWh ® Long term power purchase agreement executed in early October 2007 ® First seven wind turbines erected in March 2008 ® Interconnection agreements with April 2008 ® Electric interconnection work with 2008 SCE and CAISO executed in Edison completed in early July ® Currently working on finishing up the installation of CAISO metering and the interconnection wiring work. Anticipated ­--completion-date-is late -September 2008 and, -commissioning activities will commence shortly thereafter • Current in-service date for the first phase (half of the plant output) is late September 2008 ® The second phase is currently projected to be in mid November 2008 Cz CA ivtezropori ® Long term executed an. water Ulstrict POWF akdf"Ppmc power purchase agreement in mid May 2008 • Interconnection. agreements with SCE and CAISO amended in June 2008 ® MWD is currently certifying the CAISO meters ® The City of Anaheim is applying for the Scheduling Coordinator certification for the four MWD small hydro ® The scheduling of renewable power will commence on November 1, 2008 ®I® FA_rU ® Phase 2 Project Development Agreement executed by all project participants in March 2008 ® The project. executed consulting agreements with various consulting firms in April 2008 to prepare the Application for Certification (AFC) with the California Energy Commission ® The AFC is under preparation and on schedule to be filed in early September 2008 ® The project purchased the required Emission Reduction Credits (ERCs) in May -June 2008 ® Interconnection request was submitted to the CAISO in early February -- and interconnection -study -agreement -with The CAISO-was signed -in-July 2008. The interconnection studies will be completed by end of 2008 ® The phase 2 Development Agreement is expected to be amended in the fourth quarter of 2008 (likely in October timeframe) to include activities to issue bid specification and package for long lead time equipments • The phase 3 Project Participation Agreement is currently being prepared and expected to be considered by the potential project participants by the summer 2009 E ® Scheduling service agreement with Riverside executed in July 2007 ® Transition to Riverside real time scheduling went smoothly on October 1, 2007 ® The CAISO new market redesign has experienced several startup delays, initially to start up by early 2008, now the new market won't start up sooner than 1 st quarter of 2009 ® The CAISO new market simulations have been ongoing since early 2008, we continue our active participation, identifying many software issues that CAISO is still trying to fix ® The Riverside's scheduling software for the CAISO new market redesign is still a work in progress due to the constant changes CAISO is still making to its own software. Currently we are testing Riverside's CAISO scheduling system We hope that the market simulation activities and the software fixes will improve in quality and efficiency in the next few months R HNI a�_es roc �an�,�anrie �1l�ev-�M�unicinal{ Water:: ® Executed the Memorandum of Understanding (MOU) with SGVMWD to study the feasibility of additional small hydro generating plants along SGVMWD's pipeline in May 2008 • SGVMWD contracted the services of Stetson Engineering to study the engineering aspects of the feasibility studies in June 2008 ® First draft of -the engineering feasibility study wiil-*U !» made available in late September 2008 ® The staff will commence the. economic feasibility . studies soon after the review of engineering feasibility report Artr'ir Kato Cf�. Irl; Updated cost allocation among customer classes using the FY 07-08 retail sales data Conducted preliminary rate design sensitivity studies to correct the G1 and G2 "inverted rate" structure Preparing for electric rate adjustment proceedings in the fourth quarter 0 0 4' Q -3 AZUSA ucxr a wuu INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL Jo�� h►� FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 22, 2008 a SUBJECT: QUARTERLY FUEL COST ADJUSTMENT�FOR SAN JUAN RESOURCE On July 26, 2004, the Utility Board approved a fuel cost adjustment mechanism for San Juan power plant. This mechanism is intended to credit customers'with cost savings that are realized when our power plant operates reliably and replacement power costs are avoided, and conversely, allow the Utility to increase revenues to recover a portion of our replacement power costs when the San Juan resource experiences outages. This report encompasses replacement power costs incurred for the San Juan resource during the period of June 16, 2008 through September 5, 2008. For reasons stated below, staff recommends that Fuel Cost Adjustment of 1.22 cents per kWh be assessed on customer electric billings for the period of October 1, 2008 through December 31, 2008. 1 The availability of the San Juan unit #3 during the period of June 16, 2008 through September 5, 2008 was 94%, above the budgeted availability of 85% reflecting improved operations after the major scheduled maintenance outage. The average cost of replacement power during this reporting period was $64.71/MWh as compared to the budgeted cost of $40/MWh. The combination of higher availability and higher average cost of replacement power resulted in a net credit of $129,627 for Fuel Cost Adjustment for the quarter, ,and when combined with the carry over amount from the previous quarter of $1,420,960 results'in a total FCA charge of $1,291,333. In order to avoid a rate shock to our customers, the maximum FCA charge per quarter is set at $750,000 or about 10% of the retail rate per the FCA mechanism. Any overage above $750,000 will be carried over to the following quarter for recovery. Thus, the FCA for the second quarter will be set at 1.22 cents/kWh. An average residential customer is expected to see an increase in the range of $6 per month or about 10% for the next three months. We anticipate FCA to tapper off in the first quarter of 2009 due to improved operations and generally lower cost of replacement power. t Prepared by: Bob Tang, Assistant Director of Resource Management 101 San Juan Fuel Cost Adjustment Calculation for Q4 2008 Cumulative Quarterly Difference (CQD) Q3 2008 Carry -Over If I(CQD)I<$100,000, then adjustment=0 If I(CQD)I>$750,000, then adjustment=+ -$750,000 or else adjustment = CQD Forecast Retail Sales (MWh) SJ FCA for Q4 2008 (cents/KWh) (*) Through September 5th, 2008 F�+ O rQ October November 21,841 19,738 1.22 -$129,627 $1,420,960 $750,000 December 19,962 $64.71 5.88% June 16 -July August September* Actual SJ Output 32,959 21,142 1,468 Actual SJ Replac Energy Cost $16,457 $82,882 $125,274 Maximum Output 33,120 22,320 3,600 Unavailable SJ Output 161 1,178 2,132 % Outage Rate 0.49% 5.28% 59.22% Base SJ Output @ 85% 28,152 18,972 3,060 Unavailable SJ Output 4,968 3,348 540 % Outage Rate 15.00% 15.00% 15.00% Base SJ Replac Energy Cost @$40/MWh $198,720 $.133,920 $21,600 Actual - Base SJ Replac Energy Cost -$182,263 -$51,038 $103,674 San Juan Insurance Premium Recovery $0 $0 $0 San Juan Insurance Payout $0 $0 $0 Cumulative Quarterly Difference (CQD) Q3 2008 Carry -Over If I(CQD)I<$100,000, then adjustment=0 If I(CQD)I>$750,000, then adjustment=+ -$750,000 or else adjustment = CQD Forecast Retail Sales (MWh) SJ FCA for Q4 2008 (cents/KWh) (*) Through September 5th, 2008 F�+ O rQ October November 21,841 19,738 1.22 -$129,627 $1,420,960 $750,000 December 19,962 $64.71 5.88% 7 6A t INFORMATION ITEM k g TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL I FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 22, 2008 I SUBJECT: DISPOSAL REQUIREMENTS FOR SYRINGES AND OTHER SHARPS In 2006, SB 1305 was adopted to prohibit disposal of home -generated sharps, such as syringes, into the mixed waste stream. The ban began this month (Sept -08) and sharps may not be disposed of by residents into their curbside trash or yard waste barrel or any bin used to collect solid waste or recyclables. Appropriate disposal alternatives'include using household hazardous waste events, taking items to participating hospitals or medical clinics, or using mail -back programs to send sharps to those that consolidate them with other medical waste for proper destruction and disposal. A To implement the new disposal restriction, the California Integrated Waste Management Board has notified all Pharmacies statewide of this disposal ban and is asking them to educate their customers on appropriate disposal options. See attached information. The State is also asking each Pharmacy to become a designated collection point for sharps by mailing in a form to establish such designation. Y In order to protect privacy and collect sharps more efficiently, the State legislature introduced AB 501 this year. This bill would require pharmaceutical manufacturers whose product is administered for home use through a prefilled syringe, prefilled pen, or other prefilled injection device to arrange to provide consumers, a postage prepaid, mail -back sharps container that has j been approved by the Post Office for the safe storage and transport of sharps to a sharps consolidation location. gg! I i Many cities supported AB 501 this year and were encouraged that the bill was approved by both houses of the legislature and is now enrolled awaiting the Governor's signature. However, the I , Califomia Integrated Waste Management Board has reouested the Governor to veto the bill. Once action is sharps iso p Prepared by: I Cary Kalscheuer, Assistant to the Director of jUtilities on the 103' C) Y� A Guide to Syringe Disposal Protect Yourself, Disposing of Your Syringes It is now illegal to dispose of syringes in the trash, or recycling bin, or composting bins. All needles should be treated as if they carry a disease. mat means that if someone gets stuck with a needle, they could get infected with a disease that may be on the needle. Therefore, they would have to get extensive medical tests and worry about whether they have caught harmful or deadly disease, you have the power to prevent a situation like this simply by safely disposing of your used sharps. Do not place others at risk when safe alternatives are currently available. Why Are Needles Dangerous? They can injure people: can spread genes (hepatitis and HIV/AIDS); damage recycling equipment; and require people to be tested for years for HIV and hepabds, if they are stuck. Protect Others, To ayold needle SUM at home and protect withal and recycling workers, don't do the following: Safe Options • Don't throw used needles, syringes, or lancets in the for Home Needlegarbage. • Don't put needles in recycling containers. Disposal • Don't flush needles down the toilet • Don't put needles into used plastic milkjugs, bleach bottles, or soda bottles. To properly and legally dispose of needles, do the following: • Do use an approved disposal container, • Do find a collection center for proper disposal. Sale Packaging Olmons The safest and recommended method to package your sharps is in an approved red sharps container. The sharps container is puncture -resistant and, once sealed, cannot spill. This container Is considered full when it has been filled to three quarters of its capacity. At this point, the container should be permanently sealed and returned to a disposal location as soon as possible. At that time a new container should be obtained. Traveling with Needles Don't forget, safe needle disposal is important no matter where you are -at home, at work, or on the road. Never place used needles in the trash on airplanes, in hotel rooms, or in public restrooms. Be prepared -ask about options for safe needle disposal when you make travel reservations. If you aren't sure that needle containers will be available where you're going, be sure to buy a needle container that can hold your used needles until you can properly dispose of them. Mall-0aCh SCrY1Ce You can buy this service, which comes with a sharps container and mail -back packaging to mail your container back once it is full. The cost of service usually depends on the size of thecontainer you choose.. _.... _ _— • police and fire departments • medical waste facilities Oon'tiust leave your needles at one of these places -make sure the site accepts them, and be sure to put the needles in the right place. Nousehold Naranlous Waste Camara [NNWI Many communities have a disposal site already set up that accepts'HHW' items like used oil, batteries, and paint. In some locations, these centers also accept used needles. Call to make sure the center accepts needles before you go. Svdnge Exchange Programs These programs let you trade your used needles for new ones. The group that runs the service will dispose of your used needles safely. Options for Proper Needle Disposal _ Drop-oNC011ectionsNes some commu0lties offer collectlon sites that accept used needles. often for free. These collection sites maybe ab • local hospitals • doctors' offices • health dinics - • pharmacies • health departments • community organizations 1'•a C) LA Noma Needle Oeswctlon Devices Several manufacturers offer products for sale that allow vk to destroy needles at home by burning, melting or cutdn< off the needle -making it safe to then throw in the garbag, Prices vary depending on the product. m Now Can I Find More Information on Sharps Disposal? Ask your local pharmacist or health are provider if they can dispose of your used needles, or if they know of safe disposal programs near you. Other options would be: household hazardous waste facility, or using a mail -back container. Visit the California Integrated Waste Management Board ICIWMBI website at: http://www.clwmb.ca.gov/HHW/HealthCare/COIIeCtiOn/ to find a disposal location. Enter your county and the database will tell you where you can dispose of the sharps. 06 By Becoming A Collection Location for Disposal of home -Generated Sharps, Your Pharmacy Could: ! increase your customer base: • Gain free advertising from the posting of your facility on the CIWMB Sharps Waste Web Page. i • Help customers meet the new sharps requirements; and increaseithe number of diabetics purchasing syringes and insulin. I Effective September 1, 2008 - State law makes it illegal to dispose of sharps - (hypodermic needles, pen needles, intravenous needles,land lancets) in the trash or recycling containers. Effective September 1, 2008 - Sharps waste can only be transported in approved sharps containers and can no longer be disposed in coffee'cans, detergent bottles, soda bottles, milk jugs, or in the trash. Effective September 1, 2008 - Sharps can only be managed at a household hazardous waste facility, a home -generated sharps collection location (which may be a pharmacy or a medical waste generator's facility), a hospital;, clinic, or through a mail -back program. Now to Become a Sharps Collection Location 1. Complete the post card and return to the California Department of Public Health. i 2. You will be contacted by the Local Enforcement Agency (LEA) to complete some additional information and receive information on storage an. han- cling requirements. 107 �«m 108 3. Locate a medical waste hauler by going to the California Department of Public Health website at http://www. cdph.ca.gov/certlic/medicalwaste/ Documents/Medical Waste/Haulist. pdf to dispose of home -generated sharps waste. 4. Let self -injectors know about your pharmacy's sharps collection service. 5. The CIWMB will place your business on CIWMB's searchable web page, so the public can find a location to dispose of sharps. i Searchable List of Sharps Collection Locations by County, Located at: http://www.ciwmb.ca.gov/HHW/Healthcare/Collection/or call 1 -800 -CLEANUP { I I 109