HomeMy WebLinkAboutAgenda Packet - October 27, 2008 - UB = I
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7-USA
LIGHT A R'RTFR
AGENDA '
REGULAR MEETING OF
AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL
AZUSA LIGHT & WATER ( OCTOBER 27, 2008
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA, CA 91702
AZUSA UTILITY BOARD
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ANGEL A. CARRILLO
CHAIRPERSON /
URIEL E.MACIAS ` JOSEPH R.ROCHA
VICE CHAIRPERSON BOARD MEMBER
KEITH HANKS 1% ROBERT GONZALES
BOARD MEMBER I BOARD MEMBER
6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION ` `
(Person/Group shall be allowed to speak without interruption up to five (5)minutes maximum time,
,subject to compliance with applicable meeting rules. Questions to the speaker. or responses to the
speaker's questions or comments shall be handled after the speaker has completed his/her comments.
Public Participation will be limited to sixty(60)minutes time.),
1. New Employee Introduction
(a) Melissa Onate—Customer Service Representative I (Part.Time)
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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.
1. Minutes. Recommendation: Approve minutes of regular meeting on September 22, 2008 as written.
Minutes.pdf
2. Approval of Change Order for SSC Construction. Recommendation: Approve Change Order No. 12
for the addition of $90,761.23 and extension of time to complete by two calendar days to the SSC
Construction Incorporated contract for construction of Project WVF-207, Canyon Filtration Plant
Membrane.
SSC Change CO Exhibit.pdf
Order.pdf
3. Selection of Consultant to Design New South Reservoir. Recommendation: Approve Professional
Services contract with Civiltec Engineering Incorporated to perform engineering design services for
Project WF-221 South Reservoir Demolition and Replacement.
Res Design.pdf -
4. Authorization to Engage in Multi-Year National Gas Price Hedges to Reduce Energy Price Risks of
Garnet Wind Project. Recommendation: Authorize staff to enter into multi-year agreement natural
gas price hedging transaction in accordance with the processes and within the parameters to reduce
energy price risks of Garnet Wind Project.
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Garnet Wind
Hedge.pdf
5. Approval of Amendment to Blanket Purchase Order for Olympic Staffing. Recommendation:
Authorize an amendment amount not-to-exceed $25,000 to the blanket purchase order issued to Olympic
Staffing for temporary employee services for fiscal year ending June 30,2009.
Olyrrpic Bkt PO.pdf
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6. Approval of Request for Proposal (RFP) for Solid Waste Consultant Services. Recommendation:
( Authorize staff to solicit proposals from qualified solid waste and recycling consultants to analyze City
\ contract with Athens Services and make recommendations pursuant to the study and assist in negotiations
with Athens. 71
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MSW RFP-Rpt.pdf MSW-RFP.pdf
7. Approval of Sharps Disposal Program. Recommendation: Approve (1) implementation of a sharps
disposal program to assist residents to comply with SB 1305; (2) budget amendment in amount of
$10,000 to cover program expenses.
Sharps Prgm Rpt.pdf Sharps Prgm
Outline.pdf i
8. Approval of Request for Proposal (RFP) for Development of Public Education Materials to
Promote Water and Energy Conservation Programs and Rebates. Recommendation: Authorize
development and release of RFP to develop and produce public-education materials to promote water and
energy conservation.
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RFP PubEdMat.pdf
9. Approval of Amendment to Wren & Associates Contract for Rosedale Pipeline and Water
Infrastructure Installation Inspection Services. Recommendation: Approve the reimbursable
1 addition of$20,000 to Wren & Associates contract for continuing inspection of Rosedale Pipeline and
Water Infrastructure.
Wren Arrendnnt.pdf
10. Adoption of Reimbursement Resolution Related to Lodi Project Expenditures from Future Bond
Financings. Recommendation: Approve the following resolution:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IAZUSA DECLARING ITS INTENTION
TO REIMBURSE CERTAIN EXPEDITURES FROM THE:PROCEEDS OF A PROPOSED TAX-
EXEMPT FINANCING, AS REQUIRED BY THE UNITED STATES DEPARTMENT OF
TREASURY REGULATIONS SECTION 1.150-2. ,
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Lodi Lodi Reso.pdf
Rein'bursment.pdf
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C. SCHEDULED ITEMS
1. Adoption of Program to Protect Customer Identification and Credit Information in Compliance
with Fair Credit Reporting Act and Fair and Accurate Credit Transaction Act of 2003.
Recommendation: Approve the following resolution:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA TO
ADOPT AN IDENTITY THEFT PREVENTION PROGRAM FOR AZUSA LIGHT&WATER.
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ID Theft Report.pdf ID Theft
Programpdf
2. Approval of Amendment No. 1 to Lodi #2 Proiect Phase 2 Planning and Development Agreement.
Recommendation: Approve Amendment No. 1 to Lodi #2 Phase 2 Planning and Development
Agreement at a not-to-exceed budget of$412,000; and authorize the Mayor to execute Amendment No. 1.
Witt
Lodi Project.pdf Lodi Agreement.pdf
D. / 'STAFF REPORTS/COMMUNICATIONS
1. v Monthly Update on Water Treatment Plan
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WfP Update.pdf -
2. �/ Legislative Update
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Legislative
Update.pdf
3. ✓ 2009 Resource Adequacy Plan
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RA Rpt.pdf RA Plan Rpt.pdf
/E. \ DIRECTOR'S COMMENTS
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F. CLOSED SESSION
1. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Property Address: 150 W. 9th Street,Azusa, CA 91702
Negotiating Parties: King Ranch Market, Aner Iglesias, Business Owner
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Under Negotiation: Price and Terms of payment
2. BLOCK 36
REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Address: 152 E. Foothill Boulevard,Azusa, CA 91702
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Negotiating Parties: Bank of America& City of Azusa Redevelopment Agency
Under Negotiation: Price and Terms of Payment
3. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Address: 100 E. Foothill Boulevard,Azusa, CA 91702
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Negotiating Parties: City of Azusa and City of Azusa Redevelopment Agency
Under Negotiation: Price and Terms of Payment
4. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
.Address: 614 - 640 N. Azusa Avenue,Azusa,CA 91702
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Negotiating Parties: City of Azusa and City of Azusa Redevelopment Agency
Under Negotiation: Price and Terms of Payment
5. CONFERENCE WITH LABOR NEGOTIATOR(Gov. Code Sec. 54957.6)
Agency Negotiators: City Manager Delach
Organizations: Executive Management
G. ADJOURNMENT
1. Adjournment. f
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"In compliance with the Americans with Disabilities Act, if you 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, and Azusa Light& Water-729 N.Azusa Avenue,Azusa CA."
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JEERER
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AZUSA
1 lI4Hi t
'WATER
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CITY OF AZUSA
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MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
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MONDAY,SEPTEMBER 22,2008—16:30 P.M.
The Utility Board Members of the City of Azusa met in regular session,at the above date and time,at Victor
Hodge Elementary School, located at 700 W. 11"Street, Azusa, California. 1
Chairman Carrillo called the meeting to order and Lt. Momot led in the saluteto the Flag. Call to Order
ROLL CALL Roll Call
-PRESENT: BOARD MEMBERS: GONZALES,CARRILLO,MACIAS, HANKS,ROCHA
ABSENT: BOARD MEMBERS: NONE
ALSO PRESENT: Also Present
City Attorney Ferre,Assistant City Manager Makshanoff,Director of Resource Management Tang,Assistant
to the Utilities Director Kalscheuer, Assistant Director of Water Operations Anderson, Electric Meter
Supervisor Getty, Azusa Police Lieutenant Momot, Finance Controller Michaels-Aguilar, City Engineer
Hassel,City Clerk Mendoza, Deputy City Clerk Toscano.
Public Participation Pub Part
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Mr.An Morales addressed the Board Members regarding the following: water issues,Block 36,parking and A. Morales
fencing on Azusa,San Gabriel lighting,the Health Center,and Gale Banks article in the Los Angeles Times. Comments
Assistant City Manager Makshanoff responded to questions posed regarding parking and fencing issues on
Azusa Avenue,Block 36.
The CONSENT CALENDAR consisting of Items B-1 through B-8, was approved by motion of Board Consent Cal
Member Hanks, seconded by Board Member Macias and unanimously carried with the exception of items Appvd B-1 &
B-1 and B-3, which were considered under the Special Call portion of the Agenda. Item B-5 was removed B-3 Spec Call
from the Agenda by Staff. B-4 Rmvd
1. SPECIAL CALL ITEM. Spec Call
2. Approval was given to adopt an oppose position on Proposition 7, the Solar and Clean Energy Act of Oppose Prop
2008, and to authorize staff to advocate against this California Initiative on the November 4, 2008, 7, Solar&
General Election Ballot. Clean Energy
Act of 2001
3. SPECIAL CALL ITEM. Spec Call
4. Approval was given for additional$9,500 compensation to Wren&Associates for inspection services on Add'I Comp
Project W-245,Water Main Replacement in First Street, et.al. Wren &Assoc.
5. REMOVED FROM AGENDA.RFP from qualified solid waste and recycling consultants to analyze the Item removed
City's contract with Athens Services and make recommendations pursuant to the study. from agenda
6. Approval was given for the purchase of 96 electric meters from McAvoy and Markham Sales Company in Pur Electric
an amount of$23,237.77. ours McAvoy
7. Approval was given for the purchase of three phase Watthour Engineering Company(WECO)electric Pur Elect Mtr
meter test equipment from McAvoy and Markham Sales Company in the amount of$45,325 to replace Test Equip.
the existing test board.
8. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Res. 08-C81
ACCEPTING A CERTAIN GRANT AND REPLACEMENT OF EASEMENT AND DIRECTING THE Replace Esmt
RECORDATION THEREOF. (Northrop Grumman Systems Corporation) Northrop
Grumman
SPECIAL CALL ITEMS Special Call
Board Member Macias addressed the minutes,specifically discussion regarding opposition to recent actions Macias request
taken by Metropolitan Transit Authority; resolutions were adopted at the August 4"meeting and Mr.Macias Resos to MTA
requested those resolutions be forwarded to Chris Lowe,Clerk of the Board,Personnel Manager,Metro Gold Rocha abstain
Line Foothill Extension Construction Authority. Board Member Rocha abstained from the minutes as he was from minutes
not present at that meeting.
Moved by Board Member Macias,seconded by Chairman Carrillo and carried to approve the Minutes of the Min Appvd
regular meeting of July 28, 2008, Board Member Rocha abstained.
Discussion between Board Members and Staff regarding the process and material used to fill the trench on the Discussion
Sewer Force Main in Daybreak Drive and San Gabriel Canyon Road project: standard versus slurry backfill Add'I funds
was discussed. Utilities Department approved low bid which included use of standard backfill,however,once K. Thompson
project commenced City Engineer required slurry backfill. Because of the higher cost of using slurry backfill,
use of slurry backfill was discontinued. A portion of the trench was filled with slurry backfill and prompted
change order. Board Member Rocha voiced opposition to the change order out of concern for how the change
was being approved in the field.
Moved by Board Member Macias, seconded by Chairman Carrillo and carried to approve the addition of K. Thompson
$158,317 to the Ken Thompson,Inc.contract for construction ofProject W-243,Water Treatment Plant Water add'I funds
Mains and Sewer Force Main in Daybreak Drive and San Gabriel Canyon Road. Board Member Rocha WTP mains
dissenting. & Swr Main
SCHEDULED ITEMS Sched Items
Director of Resource Management Tang addressed the Board Members reminding them of the new water Dir Res Mgt
conservation ordinance recently adopted by the City Council and presenting an Amendment to the Azusa Light Rules &Regs
and Water Rules and Regulations to add Rule No.21 incorporating those new rules stating that the Rules and Water
Regulations govern utility services rendered outside of the incorporated areas of Azusa; he noted the Conservation
importance of establishing consistency between the City Municipal Code and the Rules and Regulations with
respect to enforcing water conservation requirements both inside and outside the City of Azusa. He responded
to questions posed.
09/22/08 PAGE TWO
007
Board Member Rocha offered a Resolution entitled:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF, THE CITY OF AZUSA, Res. 08-C82
CALIFORNIA,TO AMEND AZUSA LIGHT&WATER RULES AND REGULATIONS TO ADD RULE Amend Rules
NO. 21 REGARDING WATER CONSERVATION. Wtr Conserve
Moved by Board Member Rocha,seconded by Board Member Gonzales to waive further reading and adopt.
Resolution passed and adopted by the following vote of the Board Members:I
AYES: BOARD MEMBERS: GONZALES,CARRILLO, MACIAS,HANKS,ROCHA
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
STAFF REPORTS/COMMUNICATIONS Staff Rpts
Director of Resource Management Tang presented the Monthly Update on Water Treatment Plant stating that B.Tang
the project is 87%complete;estimated completion is mid November, and clarified the process. Update WTP
Assistant Director of Water Operations Anderson addressed the issue stating thIat the State Health has to issue C. Anderson
a permit,and contractor may ask for an extension of about 60-90 days,but a realistic and informal assessment WTP
for the schedule for completion would be December. City Attorney Ferre noied that Black and Veatch,the
Project Managers are hired to address these kinds of issues.
Director of Resource Management Tang presented the Power Resources Project Update as follows: B. Tang
Metropolitan Water District Power Purchase Agreement will begin November 1; Lodi Energy Center, Update on
application for certification has been filed on September 10";the transition to Riverside Real Time Scheduling Power Res
and the New CAISO Market Activities have had a smooth transition with the start date in 2009;the Feasibility Projects
Studies for San Gabriel Valley Municipal Water District for small hydro projects will be received by the end of
the month;and Electrical Rates are being reviewed and there may be a need for adjustments. He and Assistant
Director of Water Operations Anderson responded to questions posed regarding statements in newspaper
regarding water,basin groundwater and summer outages.
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Director of Resource Management Tang presented the Quarterly San Juan Fuel Cost Adjustment B. Tang
recommending that Fuel Cost Adjustment of 1.22 cents per kWh be assessed due to the combined higher Quarterly
availability and higher average cost of replacement power,but anticipate it to tapper off in the first quarter of San Juan
2009 due to improved operations and generally lower cost of replacement power. FCA
Assistant to the Utilities Director Kalscheuer presented the Sharps Disposal Prohibition,SB 1305 which was C. Kalscheuer
implemented September 08;he advised of AB 501 which would encourage pharmaceutical manufacturers to Sharps Disp
provide a process to collect sharps more efficiently;he detailed the issue and responded to questions posed. Prohibition
DIRECTOR'S COMMENTS I Dir Cmts
Director of Resource Management Tang provided suggested dates for the Garnet Wind Project Ribbon Cutting B. Tang
Ceremony in late October 25 or November 1,preferably;Board Members noted that they would check their Garnet Wind
schedules,but November 1"was selected. Mr.Tang suggested that all attendees ride a bus together,arrive at Ribbon Cutting
10 a.m., and attend the site and have ceremony for about '/z hour and return to warehouse staging area to
finalize the trip.
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Director of Resource Management Tang advised that the Greenhouse Gas Workshop on AB 32, has been B. Tang
scheduled for the October 27t°Utility Board Meeting at Light and Water Conference Room. Greenhouse
t Gas Workshop
October 27"
09/22/08 PAGE THREE ���o
Moved by Board Member Gonzales,seconded by Board Member Macias and unanimously carried that request Proc Sgt
for proclamation for Sergeant Martin Salazar who is re-enlisting in the service be approved;presentation is to M. Salazar
be made on October 40.
Staff responded to questions regarding construction on San Gabriel Canyon Road. Board Member Hanks Comments
thanked Staff for the report for SCAG.
Moved by Board Member Macias,seconded by Board Member Gonzales and unanimously carried to adjourn. Adjourn
TIME OF ADJOURNMENT: 7:32 P.M.
SECRETARY
NEXT RESOLUTION NO.08-C83.
09/22/08 PAGE FOUR
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KW�WXAW ft-
A7 USA
U4Ml A W4i1R
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2008
SUBJECT: ADDITIONAL COMPENSATION TO SSC CONSTRUCTION, INC. FOR
AGGREGATED ADDITIONAL WORK AND JUSTIFIED TIME EXTENSION
REQUIRED ON PROJECT WVF-207 CANYON FILTRATION PLANT
MEMBRANE TREATMENT UPGRADE AND EXPANSION
RECOMMENDATION I
It is recommended that the Utility Board/City Council approve Change Order No. 12 for the
addition of $90,761.23 and extension of time to complete by 2 calendar days to the SSC
Construction, Inc. contract for construction of Project WVF-207, Canyon Filtration Plant
Membrane Treatment Upgrade and Expansion.
BACKGROUND
At their November 20, 2006 regular meeting, the Azusa City Council accepted the bid of SSC
Construction, Inc. to construct Project WVF-207, Canyon Filtration Plant Membrane Treatment
Upgrade and Expansion. Prior to starting work on changes for Project WVF-207, the changes in
work, contract amount and time of completion must be approved by the City.
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This Change Order No. 12 represents an aggregation of SSC Change Order Requests (COR) 15,
26, and 28 plus time extension for extra time to perform additional work under COR 28. An
overview of COR 15, 26, and 28 is provided below. A detailed justification/ explanation of each
COR is provided by reference to an attached Black& Veatch letter and Change Order Form.
COR 15: Revisionof starters and breakers in Motor Control Center-2 (MCC-2) and revision of
breakers in Power Panel-1. Resultant changes to contract amount total $63,197.32.
COR 26: Revision to specification for Sample Pumps due to change in Manufacturer guarantee
for originally specified pumps. Resultant changes to contract amount total $15,920.68.
010
COR 28: Revision to specification for Chemical Metering Pumps due to change in operation and
control resulting in additional Programmable Logic Controller programming and
calculations. Resultant changes to contract amount total $11,643.23.
This Change Order 12 represents approximately 0.25% of the original contract amount.
Change orders to date total $445,788.38, representing 1.24% of the original contract amount.
Additional days: 2 days granted due to additional work created by COR 28.
A total of 56 calendar days have been added to the original contract time of completion since
project inception.
FISCAL IMPACT
This request has a fiscal impact of$90,761.23 to be funded from the Capital Improvement
Project (CEP) Budget Account for CIP Number 72107C. Time of completion has been extended
by 2 calendar days.
Prepared by:
Chet Anderson, Assistant Director- Water Operations
Oil
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® BLACK & VEATCH
, buildin9e WOrldol dillerence
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ENFflGY WATER INPePMAll ON GGVERNMENL '
City of Azusa B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and B&V File A.5
Expansion October 151h,2008
Mr. Chet Anderson, P.E.
Assistant Director of Utilities- Water Operations
Azusa Light & Water
729 N. Azusa Avenue
Azusa, CA 91702
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Subject: Change Order No. 12
Dear Mr. Anderson:
Black & Veatch (B&V) is furnishing this letter in regards to Change Order No. 12 for SSC Change
Order Requests (COR) 15, 26, and 28.
COR 15: Electrical Switchgear Modifications t
B&V revised the Electrical drawings to account for required conduit and cable between equipment and
control panels. Starters and breakers were revised in MCC-2. Breakers were revised in PP-1. The
total cost for these modifications was adjusted from$74,671.93 to $63,197.32 after negotiations
between B&V, SSC, and Davis Electrical took place. B&V has reviewed Change Order No. 15 and
recommends acceptance, including changes to the contract price.
COR 26: Sample Pump Revisions
Sample Pump Specification 11192 was revised to ensure the pumps and`motors would be suitable for
the required operating conditions. The manufacturer of the original pumps could not guarantee the
pumps/motors would be protected in exposed locations. A new pump manufacturer and pump model
were added to Specification 11192. SSC's COR 26 reflects the cost difference between the original
and revised pumps. The total cost for these modifications is $151920.68. B&V has reviewed Change
Order No. 26 and recommends acceptance, including changes to the contract price.
COR 28: Chemical Metering Pump Electrical and Programming Revisions
Specification 13550 was revised to include electrical and programming requirements necessary to
ensure the Chemical Metering Pumps would operate tinder the desired operating conditions, The
chemical metering pumps are specified to have remote control of the stroke length, and there are
provisions for manually entering that stroke length from the HMI when in Remote Manual Mode;
however, to operate in the remote automatic mode, additional PLC programming and calculations
related to speed and stroke length will need to be provided for both high and low capacity metering
pumps to operate seamlessly. The total cost for these modifications is $11,643.23. SSC has requested
a 2 day extension to the contract duration for completion of this work. B&V has reviewed Change
Order No. 28 and recommends acceptance, including changes to the contract price and duration.
Black&Veatch Corporation-15615 Alton Parkway,Suite 300•Irvine,Califomia 92618 USA•Telephone 949.753.0500•Fax 949.753.1252
1 012
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File I.6
Change Order No.12
Summary:
The table below provides a summary of the Change Order Requests included in this package. The -
final change order value is $90,761.23 and the total number of additional calendar days requested is 2.
B&V recommends approval of these additions to the contract price and duration.
Change Order Change (o Time Added
Request Contract Cost (Calendar D-ays)--�
COR 15 $63,197.32 0
COR 26 $15,920.68 0
COR 28 $11,643.23 2
TOTAL $90,761.23 2
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AZUSA LIGHT AND WATER
CHANGE ORDER I
Order No. 12
Date October 15, 2008
Agreement Date January 17, 2007
Sheet i of 2
Owner: Azusa Light and Water
Project: Canyon Filtration Plant Upgrade and Expansion
Contractor: SSC Construction Inc.
The following changes are hereby made to the Contract Documents:
ADD DEDUCT
1. Electrical Switchgear Modifications to MCC-2 and PP-1 $63,19732
(Reference SSC Change Order Request 15)
2. Revisions to sample pump specifications and manufacturers $15,920.68
(Reference SSC Change Order Request 26)
3. Revisions to Chemical Metering Pumps electrical and programming $11,643.23
(Reference SSC Change Order Request 28) 1
NET COR AMOUNT(ADD) $90,761.23
Justification
1. (Reference SSC Change Order Request 15) B&V revised the Electrical drawings to account
for additional conduit and connections between membrane filtration system equipment and
control panels. Starters and breakers were revised in MCC-2 and PP-1.
2. (Reference SSC Change Order Request 26) Sample Pump specifications were revised to
ensure the pumps and motors would be suitable for fthe outdoor operating conditions.
Different sample pump manufacturer was selected to meet the outdoor operating conditions.
3. (Reference SSC Change Order Request 28) Software programming specifications were
revised to include additional electrical and programming requirements for automatic stroke
length adjustment necessary to ensure that low and high capacity Chemical Metering Pumps
operate seamlessly over the entire range of operating conditions in the remote automatic
control mode.
SUMMARY
Change Orders9$ 0,761.23 Add (Net)
014
CHANGE TO CONTRACT PRICE
Original Contract Price $ 35.905,500.00
Current Contract Price Adjusted
By Previous Change Order(s) $ 36,260,527.16
Contract Price due to this
Change Order will be (increased) $ 90.761.23
New Contract Price, Including this Change Order $ 36,351,288.39
CHANGE TO CONTRACT TIME:
Contract Time Will Be Increased by 2
(Calendar Days)
Date of Completion of All Work November 13, 2009
APPROVED:
Owner: Azusa Light & Water Contractor: SSC Construction, Inc.
By:
Chet Anderson 4Authbrized
Engineer: Black & Veatch
By: ✓
Ashu Shirolkar, Project Manager
pis
hoz- oma '
SSC Construction, Inc. CHANGE ORDER REQUEST
2073 Railroad St. No. 00015 R1
Phone: 951 278-1177
Corona,CALIFORNIA 92880
TITLE: 8/6/07 Switchgear Drawing Revsions ; DATE:914/2008
PROJECT:Canyon Filtration Plant JOB: 657
TO: Attn: Jake S. Holden CONTRACT NO: I
Black & Veatch Corporation
15615 Alton Parkway
Suite 300
Irvine, CA 92618
Phone: (949)789-1252 Fax:(049) 753-1252
RE: To: From: Number:
DESCRIPTION OF PROPOSAL
Davis Electric Cost proposal for Switchgear Modfications associated wiht the revision of Electrical Drawings dated 8/62007 by Black
&Veatch.
SSC Reserves its right to any time driven costs,should this work impact the critical path of the project.
Item Description Stock* Quantity Uhita Unit Price Tax Rate Talc Amount Net Amount
00001 Additioml Eloctrical Costs for 1.000 559,592.00 0.00% $0,00 559,59200
$withgear per revised Electrical
drawing package from August
6,2067.
Unit Cost: $59,592.00
Unit Tax: $0.00
Unit Total: $59,592.00
Subtotal: $59,592.00
Description Markup PercentMarkup Amobot
Contractor Markup 5.000% $2,979.60
Bond &Insurance 1%a $625.72
a
Total Cost: 563,197.32
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APPROVAL:
By: By: du.—/ /1a ,,.-
Jake S. Holden Alfredo Bautista
Date: Date: 11 y/zon 8
E.p.diien ti
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Cot oZc�
SSC Construction, Inc. CHANGE ORDER REQUEST
2073 Railroad St, No. 00026
Phone: 951 278-1 177
Comm,CALIFORNIA 92880
TITLE: Sample Pump Spec Revision DATE:7/2/2008
PROJECT:Canyon Filtration Plant JOB: 657
TO: Attn: Jake S. Holden CONTRACT NO: I
_-Blaek-&Veatclr£orpomtiorr
15615 Alton Parkway .
Suite 300
Irvine, CA 92618
Phone: (949) 788-1252 Fax: (949) 753-1252
RE: To: From: Number:
DESCRIPTION OF PROPOSAL
Material Costs associated with the revision of specification 11192,Sampling Pumps.
SSC Reserves its rights to any time driven costs should resolution of this change impact the critical path of the project.
Item Description Stoc" Quantity Units Unit Price Tax Rate Tax Amount Net Amount
00001 Cost Differential of Pump 1,000 $13,707.00 0.000% $0.00 S13,707.00
Equipm at
Unit Cos[: $13,707.00
Unit Tax: $0.00
Unit Total: $13,707.00
Subtotal: $I3,767.00
Description Markup Percent Markup Amount
Contractor Markup 15.000% $2;056.05
Bond&Insurance 1% $157.63
Total Cost: $15,920.68
APPROVAL:
By: By: (1�(a.
Jake S. Holden Alfredo Bautista
Date: Date:
EyeGcm m
017
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SSC Construction, Inc. CHANGE ORDER REQUEST
2073 Railroad St. No. 00028
Phone: 951278-1177
Corona,CALIFORNIA 92880
TITLE: RFI 195 Electrical Revisions DATE:9/4/2008
PROJECT:Canyon Filtration Plant JOB: 657
TO: Attn: Jake S. Holden CONTRACT NO: 1
Black& Veatch Corporation
15615 Alton Parkway
Suite 300
Irvine, CA 92618
Phone: (949) 788-1252 Fax: (949) 753-1252
RE: To: From: Number:
DESCRIPTI0.N OF PROPOSAL
Davis Electric Cost proposal for the required modifications associated with the revised electrical specification as detailed in the
response to RFI 195. 1
In addition to extra costs completion of the required work will require a 2 day extension to the contract duration.
SSC Reserves its right to any time driven costs,should this work impact the critical pitht
! of the project.
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Item Description 8tockif Quantity Units Unit Price: Tax Rate Tax Amount Net Amount
00001 Additional Flecuical ceus for 1.000 $10,979.00 0.00% $0.00 $10979.00
work associated with the
revisions to the electrical
requirements per response to
RFI 195
Unit Cost: $10,979.00
Unit Tax: $0.00
Unit Total: $10,979.00
Subtotal: 510,979.00
Description Markup Percent Markup Amount.
Contractor Markup 5.000% $548.95
Bond& Insurance I% $115.28
�ff Total Cost:, $11,643.23
1
I
APPROVAL: I
By: By:ILI
Jake S. Holden I Alfredo Bautista
Date: Date: 01/q/2o0 B
EspcCnon b (
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71
'3
Inly
FT
- RIE
AZUSA
L CN16 W4iFF
gdowi
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL I
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIEIS^�
DATE: OCTOBER 27, 2008 A
SUBJECT: APPROVAL OF A PROFESSIONAL SERVICES CONTRACT WITH
CIVILTEC ENGINEERING, INC. TO PERFORM ENGINEERING DESIGN
SERVICES FOR PROJECT WF-221 SOUTH RESERVOIR DEMOLITION
AND REPLACEMENT
RECOMMENDATION
It is recommended that the City Council approve a Professional Services Contract in the amount
of $131,530.00 to Civiltec Engineering, Inc. to provide engineering design services on Project
WF-221, South Reservoir Demolition and Replacement. I
i
BACKGROUND The South Reservoir, located at the Spreading Grounds WellField, is an essential element in the
Azusa water system with a capacity of 2.5 million gallons. However, South Reservoir is over 6o
years old, leaks, and has surpassed its effective useful life. A Requests For Proposal (RFP) was
sent to five experienced and competent Civil Engineering firms to solicit their interest in
performing the engineering design work required to prepare plans and specifications to construct
a new 4 million gallon replacement reservoir and demolish the existing South Reservoir. Four
consultants responded to the RFP for this project: Civiltec, $131,530 ($165.45/manhour (MH));
SA Associates, $127,000 ($159.15/MH); RBF, $104,767 ($178.80/MH), and Black & Veatch,
$128,000 ($193.35/MH). Staff recommends that Civiltec be awarded the contract based on its
proposed shorter schedule to complete the project, personnel assigned to the project, and
Civiltec's familiarity with the Spreading Ground site.
i
419
r
FISCAL IMPACT
The fiscal impact of this consultant design services contract is $131,530 to be funded from the
Capital Improvement Project budget account 32-80-721-000-7130/72109B-7130 approved by the
City Council/Utility Board.
Prepared by:
Chet F. Anderson, Assistant Director- Water Operations
020
1`
d?AZUSA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA
UTILITY BOARD AND AZUSA CITY COUNCIL
I
FROM: JOSEPH F, HSU, DIRECTOR OF UTILITIES tel.
�, N
DATE: OCTOBER 27, 2008
SUBJECT: AUTHORIZATION TO ENGAGE IN MULTI-YEAR NATURAL GAS
PRICE HEDGES TO REDUCE ENERGY PRICE RISKS OF GARNET
WIND PROJECT
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council authorize the staff to enter
into multi-year natural gas price hedging transaction in accordance with the processes and
within the parameters described below to reduce energy price risks of Garnet Wind
Project.
BACKGROUND
In 1999, the City Council approved the Risk Management Policy setting forth
specific guidelines for the Electric Utility personnel to cagy out the purchases
and sales of electricity. The Risk Management Policy was amended several times
in the past few years to revise and/or update the authorization to conduct
wholesale energy transactions as follow:
1. Amended in July and December 2002 to update the authority to conduct short
term power transactions.
I
2. Amended in October 2006 to allow the use of fixed-for-floating natural gas price
hedges to provide price certainty for wholesale electricity contracts tied to natural
gas price indices, e.g., summer peaking contract with the California Department
of Water Resources (CDWR), renewable energy contracts with the San Gabriel
Valley Municipal Water District (SGVMWD) and+ the Garnet Wind Project
Under the currently approved authorization, the Director of Utilities can conduct
wholesale power and natural gas hedging transactions up to 12 months in duration. While
021
J
a
such authorization is adequate for shorter term agreements (CDWR agreement is only for
three years) and small project (SGVMWD small hydro only provides up to 2% of city's
annual electricity), it is not sufficient for a long term and larger contract such as Garnet
Wind Project (the contract with Garnet Wind is for 20 years and when fully operational
will provide about 10% of city's electricity consumption).
Thus staff is recommending the following process and parameters to be authorized to
hedge Garnet Wind energy prices by using natural gas price hedges:
1. Authorized staff: the Director of Utilities or his designee
2. Allowable duration of the transaction: up to 4 years in duration and
commencing no later than 24 months in the future, e.g., a transaction that
commences in September 2009 and through August, 2013 is allowed; but a
transaction that starts in December, 2010 and through November 2014 is not
allowed
3. Allowable transaction volumes: not to exceed the expected monthly Garnet
Wind energy generation
4. Trigger prices: the prices of natural gas hedge that could trigger the purchase of
such hedge shall result in an effective Garnet Wind energy price not exceeding
$10/MWh MORE than the expected Garnet Wind energy price when the
agreement was originally signed (the expected Garnet Wind energy price was
$75/MWh for the term of the agreement when the agreement was signed in
September 2007). Thus any hedge shall not cause the effective energy price for
Garnet Wind to exceed $85/NM
5. Frequency of trigger: the authority to trigger the purchase of a price hedge shall
not be exercised more than once during any 12-month period, e.g., if the purchase
of a hedge took place in November 2008, then the next time the authority can be
exercised again shall be no sooner than November 2009 unless further authorized
by Utility Board/City Council
6. Reporting: Staff shall report to Utility Board/City Council in the regularly
scheduled Utility Board meeting immediately subsequent to the purchase of such
hedge, providing cost information; the duration; the start and end dates; the
transaction volume and resulting effective energy prices for the transaction
Staff believes that the process and the parameters outlined above will provide sufficient
flexibility and with appropriate control and oversight in place to enable effective and
efficient management of Garnet Wind energy price risks.
022
FISCAL IMPACT
The processes and the parameters outlined above for managing Garnet Wind energy
prices will provide expanded means for the utility to manage its risks and thus it is
expected to have a beneficial fiscal impact overall in the long term.
Prepared by:
Bob Tang, Assistant Director of Resource Management
i
I
023
1
1
AZUSA
i rnr werrs
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: OCTOBER 27, 2008 1 ,
SUBJECT: AMENDMENT OF BLANKET PURCHASE ORDER IN AMOUNT OF
$25,000 TO OLYMPIC STAFFING, A TEMPORARY EMPLOYMENT
SERVICE AGENCY
RECOMMENDATION
It is recommended that the Utility Board/City Council authorize an amendment in the amount
not-to-exceed $25,000 to the blanket purchase order issued to Olympic Staffing for the fiscal
year ending June 30, 2008.
BACKGROUND
Olympic Staffing was issued with an approved blanket purchase order in the beginning fiscal
year in the amount of$9,999.99 for temporary staffing needs in various divisions at the Light&
Water Department. Currently, both Customer Service Division and Water Distribution Division
have a temp from the agency. The temporary worker in the Customer Service division is
assisting with the water conservation program administration. The temporary worker in the
Water Distribution Division is temporary filling-in for Office Specialist vacant position that is
undergoing the recruitment process. Since continued services from the temp agency will exceed
the existing blanket purchase order amount, Board approval is required to amend the purchase
order.
FISCAL IMPACT
Allowable expenditures to Olympic Staffing will be increased by $25,000. Funds are available
in various divisions' outside services budget. I
Prepared by: Steven Yang, Administrative Analyst—Administrative Services Division
024
7
AZUSA
i r.nr w wurr
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL 1
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES('
DATE: OCTOBER 27, 2008
SUBJECT: REQUEST FOR PROPOSAL FOR SOLID WASTE CONSULTANT
SERVICES
RECOMMENDATION
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 and assist staff;in negotiations with Athens.
BACKGROUND 1
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..
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.
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
1 025
e
on whether we should negotiate changes to our current contract and provide parameters for
future waste stream management options.
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
026
f -
REQUEST FOR PROPOSALS (RFP)
SOLID WASTE AND RECYCLING
ECONOMIC AND STRATEGIC STUDY
October 28, 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. 9
I
General factors to be considered as part of the consultant study shall include, but not be limited
to, the following:
• 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
1. Review current contract with Athens Services in detail, including terms, conditions and
restrictions. M
2. Explore solid waste disposal and non-disposal facilities that will most likely be used in
the future by Athens Services.
3. Create a 5 and 10 year cost and rate forecast based on current contract terms and expected
disposal/waste transfer costs.
Azusa Request for Proposals Page 1
i
027
4. Review other types of recycling program options, and review existing and future
disposal, MRF and transfer facilities and contract service arrangements that are currently F
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 arrangements 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 review of alternative programs 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 of competitive
bidding, anticipated legislative changes, and the closure of the Puente Hills Landfill and
how it will affect yard waste diversion.
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?
8. Present written to report to City Council through powerpoint presentation.
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.
3. Powerpoint presentation in electronic format.
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
028
Oualifications
1. Consultant must be familiar with San Gabriel Valley and solid waste industry serving the
Valley.
2. Consultant must be familiar with the Los Angeles County Sanitation Districts' Waste-by-
Rail Project, conversion technology (CT) facilities and waste transfer logistics.
1
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.
5. Consultant should be able to complete study within 60 days following approval. The
approval process will likely take at least 30 to 60 days from date proposals are due.
Proposal Requirements I
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.
3. Consultant must be willing to participate in an oral interview since top candidates will be
screened and selected for such an interview.
e
4. Proposals must be received by 5:00 p.m. on Monday, November 17, 2008, at the
following location:
Mr. Sonia Carvalho, Attorney
Best Best & Krieger LLP
5 Park Plaza, Suite 1440
Irvine, CA 92614
5. If you have any questions about this Request for Proposals, please call Cary Kalscheuer,
Assistant to the Director of Utilities, at telephone (626) 812-5174.
6. No FAX copies will be considered.
r
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.
1
8. Provide hourly rate to assist City staff in negotiating contract changes with Athens
Services.
Azusa Request for Proposals Page 3
029
Attachments
Supplement Solid Waste/Recycling Information
Rate Schedule
Professional Services Agreement
Supplemental Solid Waste/Recycling 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
030
i
AZUSA
N,n r.arry
CONSENT CALENDAR
1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL I
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2008 ,
SUBJECT: SHARPS DISPOSAL PROGRAM
RECOMMENDATION
1
i
It is recommended that the Utility Board/City Council: (1) approve of the implementation of a
sharps disposal program to assist residents to comply with SB_1305; and (2) approve of budget
amendment in amount of$10,000 to cover program expenses:
BACKGROUND I
At the September Utility Board meeting, staff reported that effective September 1, 2008, SB
1305 makes it illegal to dispose of home-generated sharps in the trash or recycling containers
and requires the proper disposal through using household hazardous waste events, taking items to
participating hospitals or medical clinics, or using mail back'programs to send sharps for proper
destruction and disposal. This bill was enacted to minimize health risks posed by sharps waste to
workers at landfills and material recovery facilities.
1
In order to protect privacy and collect sharps more efficiently, the State legislature introduced
AB 501 which would have required pharmaceutical 'manufacturers whose product is
administered for home use through pre-filled injection devices to arrange to provide consumers a
postage pre-paid, mail back sharps container that has been approved by the Post Office for the
safe storage and transport of sharps to a consolidation location. However, this bill was recently
vetoed by the Governor "because the bill only applies to the disposal of pre-filled injection
devices" and does not cover other home-generated sharps waste . With this development, the City
needs to play a greater role to prohibit what is now illegal disposal of sharps by public.
031
i
i.
To provide a low-cost, convenient way for Azusa residents to comply with SB 1305, staff is
proposing the following program:
• City will offer pharmacies "mail back" containers for sharps at no initial cost, which are
to be distributed to customers at discounted prices
• Residents would then pick up sharps "mail back" container at participating pharmacies at
following prices:
o First container is FREE; 2"d and 3rd will be sold at $5 each from participating
pharmacies. Free containers may also be picked up at LA County distribution
sites.
• Residents would then take mail back container to post office for mailing when full.
• Pharmacies to order additional mail back containers from City with proof that previously
ordered containers were distributed to residents; pharmacies would remit via check
receipts received from customers for sharps containers.
Staff notes that the proposed program is voluntary and pharmacies are not required by law to
participate. Because of the voluntary nature .of the program, it is difficult to forecast
participation, however, it is hoped that pharmacies will want to act responsibly and provide their
customers with legal disposal options for the products they sell. The program will provide
recognition of stores in the form of free advertising which should encourage participation.
FISCAL IMPACT
Demand for this program is unknown at this time; however, costs are not expected to exceed
$10,000 by fiscal year end. AB 939 fee revenues will be used to amend budget account 28-40-
750-065-6625 in amount of$10,000 to cover anticipated expenses for this program.
Prepared by:
Liza Cawte, Administrative Technician
Program Work Plan/Outline
B-7. Sharps Prgm
Outline.pdf
032
t
SHARPS DISPOSAL PROGRAM OUTLINE
I
Key Points:
• Purchase of mail back kits to be distributed to participating pharmacies to start up the program
• Residents pick-up 1"FREE mail back kit from pharmacy(2"d& 3rd gat$5 each)
• Residents take mail back kits to post office when full I
• Pharmacies to order additional kits from Azusa Light&Water(AL&W)
• Vendor to send invoice to AL&W
• Pharmacies send monthly report and payment collected to AL&W
Tasks Target Date Completion Date Cost
Identify pharmacies and drugstores within Azusa 10/6/08 10/9/08-Completed Staff time
jurisdiction
Develop program guideline for Pharmacies and 10/28/08 Staff time
participation agreement/forms
Send program letters to pharmacy owners/managers 11/10/08 Staff time
along with program guidelines and participation
agreement
I
Pharmacies to submit participation agreement and order 11/20/08 ! Staff time
form for"mail back containers"to AL&W
AL&W to order mail back containers and have them 11/25/08 $2202+tax
delivered directly to Pharmacies &shipping
Develop public education and advertising campaign for 12/1/08 I Staff time
the sharps disposal program
Implement public education campaign through 12/18/08 { $400
newspaper advertisement, newsletter,city website if
I
Pharmacies to distribute mail back containers to 12/22/08 Staff time
customers according to program guidelines and submit
reports of distributed containers along with orderform
for additional containers to AL&W
1
Report program results on quarterly basis beginning April 4/27/09 Staff time
1, 2009 1
033
I
A.Z.
i M
CONSENT CALENDAR
1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL I
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2008
SUBJECT: REQUEST FOR PROPOSALS FOR DEVELOPMENT OF PUBLIC
EDUCATION MATERIALS TO PROMOTE WATER AND ENERGY
CONSERVATION PROGRAMS AND REBATES
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council authorize development and release
of a Request For Proposals to develop and produce public education materials to promote water
and energy conservation.
BACKGROUND
As a result of the recent customer satisfaction survey it was discovered that customers need more
information about water and electric conservation and rebate programs offered by Azusa Light&
Water. For many years the Utilities Department has used billing inserts to provide important
information to our customers, however, has not widely used Billing inserts to promote utility
sponsored environmental conservation and rebate programs. i
According to the survey, 66%of customers indicated they preferred to get information about
utility services and programs through billing inserts, and so it is desirable to develop more billing
inserts and other complimentary information, such as lobby posters and newsletter articles, to
promote existing water and energy conservation and rebate programs. Toward this end, Azusa
Light&Water would like to retain an outside service provider that can design and produce
appropriate public education materials that will be effective at promoting interest in our water
and energy conservation programs. 1
We are requesting approval to develop and release a Request For Proposals (RFP) to cover the
artwork and printing of the materials. The RFP will be broken into three components and
vendors can bid on any or all components. The first component will consist of the development
of the artwork, the second for printing and the final component will be a combination of both
034
artwork and printing. This will allow some flexibility to select designers and printers separately
or together, depending on cost and quality of the proposed communication products.
FISCAL IMPACT
It is expected that the cost for the design and publication services,will exceed $10,000 and so
Utility Board/City Council authorization is required to proceed. Final costs will be dependant on
quotes provided by third parties in response to our request for proposals. Funding for public
education materials will be provided by our public benefits fund 24 and water fund 32.
Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator
035
Y
q WOMEN40
t.
A7UWEI
IIGNT 0. WRIER
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL 9
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2008
M
SUBJECT: ADDITIONAL REIMBURSABLE COMPENSATION TO WREN &
ASSOCIATES FOR CONTINUING INSPECTION ON ROSEDALE PIPELINE
AND WATER INFRASTRUCTURE INSTALLATION
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the reimbursable addition of
$20,000 to the Wren &Associates contract for continuing inspection of the Rosedale
development pipeline installation.
BACKGROUND
At its December 19, 2005 regular meeting, the Utility Board approved a Professional Services
Contract with Wren & Associates to perform inspection of water pipeline installations by the
developer of the Rosedale development. The costs of the inspection services are reimbursable by
Azusa Land Partners (ALP), the developer of Rosedale. To date, all of the money paid to Wren
by Azusa Light& Water, about $190,000, has been submitted to ALP for reimbursement. This
request for approval of additional compensation to Wren is required by Azusa municipal code
since it exceeds $10,000. This addition of$20,000 to previously approved amounts will bring the
total contract amount to $210,000.
FISCAL IMPACT
This request has NO FISCAL IMPACT. The additional payments to Wren approved will be
initially funded from the Capital Improvement Budget Account 32-80-721-000-7130/72107B-
7130. The compensation paid to Wren by the City is reimbursable by ALP.
Prepared by:
Chet Anderson, Assistant Director- Water Operations
1 036
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3
AZU4A
rur a nor ryec
I
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES .
DATE: OCTOBER 27, 2008
SUBJECT: ADOPTION OF THE REIMBURSEMENT RESOLUTION RELATED TO LODI
PROJECT EXPENDITURES FROM FUTURE BOND FINANCINGS
RECOMMENDATION
It is recommended that the Utility Board/City Council adopt the reimbursement resolution
("Resolution") declaring city's intent to be reimbursed for Lodi Project expenditures from
future bond financings.
BACKGROUND
In November 2007, the Utility Board/City Council authorized city's participation in the
planning and the development of Lodi #2 Project ("Lodi Project") in northern California. Lodi
Project attained full subscription in March 2008 and planning and development activities have
been taking place since that time. The expenditures currently being incurred are funded by
each project participant's own money. However, it is anticipated that the project will issue
long term bonds to pay for project expenditures, if, and when the project goes into the
construction phase.
Pursuant to IRS regulations, the city must adopt a resolution declaring its intent to be
reimbursed for expenditures incurred prior to the issuance of bond indebtedness. The
attached resolution will accomplish this objective.
FISCAL IMPACT
i
There is no cost associated with the adoption of this resolution.
i
Prepared by:
Bob Tang, Assistant Director of Resource Management
037
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AZUSA DECLARING ITS INTENTION TO .
REIMBURSE CERTAIN EXPENDITURES FROM
THE PROCEEDS OF A PROPOSED TAX-EXEMPT
FINANCING,AS REQUIRED BY UNITED STATES
DEPARTMENT OF TREASURY REGULATIONS
SECTION 1.150-2
WHEREAS, the City of Azusa (the "City") is contemplating the issuance by the City, or an
entity on behalf of the City, of tax-exempt obligations (the "Bonds") to fund city's participation
share in Lodi Energy Project("Lodi Project"); and
WHEREAS, Lodi expenditures will occur prior to the date of issuance of the Bonds
(the 'Reimbursable Expenditures"); and
WHEREAS, section 1.150-2 of the Treasury Regulations (the "Treasury
Regulations") promulgated under the Internal Revenue Code of 1986, as amended,
requires that in order that an allocation of proceeds of the Bonds to an expenditure paid
prior to the issuance of the Bonds be respected by the Internal Revenue Service, the City
generally must no later than 60 days following such payment have declared its reasonable
official intent to reimburse for such payment out of proceeds of the Bonds; and
WHEREAS, the City desires to facilitate the allocation of proceeds of the Bonds to
the reimbursement for payment of all or a portion of the Reimbursable Expenditures for
the Lodi Project;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa
as follows:
SECTION 1. Compliance with Treasury Regulations
This Resolution is adopted solely for purposes of establishing compliance with the
requirements of section 1.150-2 of the Treasury Regulations. This Resolution does not obligate
the City to make any expenditure, issue the Bonds or proceed with the Lodi Project.
SECTION 2. Intent to Reimburse City from Bond Proceeds
The City hereby declares its reasonable official intention to issue Bonds or incur other
obligations in an amount that is currently expected to be approximately $10,000,000, and to apply
a portion of the proceeds thereof to the reimbursement of the City for the prior payment of
Reimbursable Expenditures. The City recognizes that under section 1.150-2 of the Treasury
Regulations, the allocation of proceeds of the Bonds to Reimbursable Expenditures (other than
certain de minimis or preliminary expenditures described in section 1.I50-2(t) of the Treasury
Regulations) will be recognized only if(i) the Reimbursable Expenditures were paid not earlier
p38
than 60 days prior to the adoption of this Resolution and (ii) the allocation of proceeds of
the Bonds to such reimbursement is made not later than the later of (a) 18 months after
the date of payment of the Reimbursable Expendituresior (b) 18 months after the date
upon which the Lodi Project is placed in service or abandoned, but in no event more than
three years after the date of the original expenditure of such moneys.
SECTION 3. Effective Date
This Resolution shall take effect from and after the date of its passage and adoption.
Adopted by the Council of the City of Azusa on this 27th day of October, 2008.
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA ) I
COUNTY OF LOS ANGELES ) ss
CITY OF AZUSA ) '
I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that
Resolution No. was adopted by the Council of the City of Azusa, California at a
regular meeting held on the 27th day of October, 2008, and that same was adopted by the
following vote:
I
A
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
I City Clerk
a
039
1 ,
V '
AZUSA
LIGHT L'WATER
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL I
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE�
DATE: OCTOBER 27, 2008 �`,
SUBJECT: RESOLUTION TO ADOPT A PROGRAM TO PROTECT CUSTOMER
IDENTIFICATION AND CREDIT INFORMATION IN COMPLIANCE WITH
THE FAIR CREDIT REPORTING ACT AND FAIR AND ACCURATE CREDIT
TRANSACTIONS ACT OF 2003
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve the attached resolution to
adopt Identity Theft Prevention Program— Compliance with Red Flags, a program required by
the Fair Credit Reporting Act (FCRA) as amended by Sections 114 and 315 of the Fair and
Accurate Credit Transactions Act(FACT Act). "<
BACKGROUND
The fastest and most financially devastating crime in the United States is identity theft. The Fair
Credit Reporting Act (FCRA) is the primary federal law regulating consumer credit information.
The Fair and Accurate Credit Transactions (FACT) Act amended the FCRA by allowing
consumers to request one free credit report per year, allowing consumers to monitor their credit
histories, and requiring specific protections of consumer credit information.
The FCRA now requires creditors to develop and implement�an Identity Theft Prevention
Program by November 1, 2008. All organizations that extend credit to consumers, including
utility service providers, must comply with this regulation which is intended to identify, mitigate,
and prevent identity theft. The FACT Act requires that creditors, including utilities, conduct a
risk assessment to determine whether customer accounts it maintains are subject to a reasonably
foreseeable risk of identity theft, whether that risk is to the customers or to the creditor itself.
I
The regulation focuses primarily on Red Flags. A Red Flag is defined as "a pattern, practice, or
specific activity that indicates the possible existence of identity theft." Final rules issued by the
Federal Trade Commission (FTC) allow some flexibility with regard to the program's design and
implementation. The policies and procedures must identify, detect, and respond to relevant Red
1 040
Flags, and ensure the program is updated periodically to reflect changes in risks from identity
theft. Employees with direct access to customer information are to receive initial training and
annual training updates. Periodic reviews, conducted at least annually, will assess the
effectiveness of the policies and procedures in light of any changes in identity risks to customers
or to Azusa Light & Water or to the City. The Director of Utilities will provide oversight over
the policies and procedures, and Azusa Light &Water will report annually to the Utility Board
on the program effectiveness.
Azusa's proposed program as outlined in Exhibit A to the attached resolution meets FTC
guidelines. An Identity Theft Prevention Committee has been formed with members from
various areas of Light & Water Customer Service and Information Systems, and is working on
various compliance assignments. It will take approximately one month after approval to
complete the initial assessment and employee training.
FISCAL IMPACT
It will cost approximately$2,000 for certain records protection measures, such as cross-
shredders and keying cupboards that store sensitive records. The cost is yet unknown for
ensuring cameras are focused on primary customer contact areas of the office and data is stored
for at least six months. These will be charged to Account Number 31-40-711-903-6530. Any
other operating costs associated with the proposed program will be included in Azusa Light &
Water's operating budget.
Prepared by:
Karen Vanca, Assistant Director Customer Care & Solutions
041
RESOLUTION NO. 6
A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY
COUNCIL OF THE CITY OF AZUSA TO ADOPT AN
IDENTITY THEFT PREVENTION PROGRAM FOR
AZUSA LIGHT & WATER
WHEREAS, Utility Board/City Council holds utility customer information in the
highest level of privacy and confidentiality; and j
WHEREAS, the Utility Board/City Council requires and supports compliance with
the Fair Credit Reporting Act; and
WHEREAS, the Utility Board/City Council requires Azusa Light & Water to treat
utility customer information with the strictest care and confidence; and
WHEREAS, Azusa Light & Water proposes to implement the following
Identity Theft Prevention Program:
Identity Theft Prevention Program -Compliance with Red Flags
1
NOW, THEREFORE, T14E UTILITY BOARD/CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, DOES FIND AND DECLARE THAT:
I
SECTION 1. Adoption of Identity Theft Prevention Program. The City Council
hereby adopts an Identity Theft Prevention Program and requires Light & Water to comply with
all program elements, as set forth in Exhibit "A" which is attached to this Resolution and made a
part hereof.
I
SECTION 2. Effective Date. The Identity Theft Prevention Program shall
become effective on October 28, 2008.
PASSED, APPROVED AND ADOPTED this 27"d day of October.
I
1
s
i
Joseph R. Rocha
Mayor
ATTEST:
Vera Mendoza
City Clerk
042
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that the
foregoing Resolution No. was duly introduced and adopted at a regular meeting
of the Azusa Utility Board/City Council on the 27th day of October 2008, by the following vote,
to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Vera Mendoza
City Clerk
043
EXHIBIT A I
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Identity Theft Prevention Program
Compliance with Red Flags
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October 27, 2008
1 044
Azusa Light &Water
Identity Theft Prevention Program
I. Purpose
The goal of this policy is to prevent identity theft. Azusa Light & Water recognizes
the responsibility to safeguard personal customer information within the workplace.
The purpose of this policy is to create an Identity Theft Prevention Program utilizing
guidelines set forth in the FACT Act (2003).
II. Scope
This policy applies to management and all personnel of Azusa Light & Water.
The following represents a policy for the development of the identity theft prevention
program. This does not replace, but rather supplements, standing policies.
III. Responsibility
Azusa Light & Water must protect customer data and implement policies and
procedures that meet standards established by the Federal Trade Commission by
November 1, 2008.
IV. Definitions
IT Information Technology
Identity Theft Financial identity theft occurs when someone uses another
consumer's personal information (name, social security
number, etc) with the intent of conducting multiple
transactions to commit fraud that results in substantial harm
or inconvenience to the victim. This fraudulent activity may
include opening deposit accounts with counterfeit checks,
establishing credit card accounts, establishing line of credit,
or gaining access to the victim's accounts with the intent of
depleting the balances.
Privacy Officer The Privacy Officer heads the Identity Theft Prevention
Protection Committee and reports to the Director of Utilities
regarding the outcomes and needs of the identity theft
prevention program. The Assistant Director of Customer Care &
Solutions is appointed by the Director of Utilities to act in the
capacity of the Privacy Officer.
utility For the purposes of this policy, Azusa Light & Water is
referred to as Utility.
Red Flag A pattern, particular specific activity that indicates the.
possible risk of identity theft.
2 045
I '
Azusa Light &Water
Identity Theft Prevention Program
V. Policy
It is policy of Azusa Light & Water to:
• Respond to fraud and activity alerts
• Properly dispose of consumer report information
• Provide information to victims of identity theft
• Properly handle notice of identity theft
• Respond to any notification received from identity theft, to prevent
refurbishing blocked information I
• Truncate the last 5 digits of a debit or credit card
• Comply with the rules regarding sharing information with affiliates
• Provide an oral, written, or electronic notice to those who receive less
favorable terms
• Provide the required notice and credit scores
• Provide the notice regarding negative information
• Take appropriate action when the utility receives a notice of
discrepancy in the consumer's address
• Comply with red flag guidelines
• Protect medical information in the utility system
VI. Procedure
A. Implementing the Program
1. Form an Identity Theft Prevention Protection Committee
Establish an identity theft preveIntion committee to create,
implement and monitor the program. Select members from
utility mid-management, Billing, Customer Service, Credit and
Collections, and IT.
2. Assign Responsibilities to Committee Members
Responsibilities should be directly related to individual
members' areas of expertise. I
3. Committee members will serve a two-year term and may be re-
appointed by the Privacy Officer for additional terms.
t
B. Assess Utility's Need for New/Updated Policies and Procedures
The following represent the core of the procedures for the Identity
Theft Prevention Program.
3 046
Azusa Light &Water
Identity Theft Prevention Program
Red Flag Procedures — Steps to Detect, Prevent and Mitigate
Identity Theft in New and Existing Accounts:
1. Opening of New Accounts and the Monitoring of Existing
Accounts
2. Breech in Security
3. Records Disposal
4. Responding to Notices of Address Discrepancies
5. Providing Designated Employees With Identity Theft
Prevention Training
6. Handling Reports of Suspected Identity Theft
7. Conducting IT Audits to Monitor Risk for Identity Theft
8. Confidentiality of Medical Records
9. External Business Partners With Custody of Utility
Customer Information
10. Call Recording
11. Reports, Reviews and Updates for Policy Enforcement
4 047
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedure
Opening of New Accounts and the Monitoring of Existing Accounts
Policy: Azusa Light & Water complies with the FACT Act by:
A. Defining Actions to be taken for each of the Red Flags which relate to the
opening of new accounts and the monitoring'of existing accounts.
Flag Next Step Mitigation
(Steps to Control
Losses
Alerts 7
Consumer report Fraud: V Not opening a new
indicates 1. CSR informs customer cannot account in this
Fraud or active duty sign for service due to a problem customer's name.
alert. confirming ID information. j
2. Customer must come to the
office with proof of ID. D.L. or
Passport. 1
3. Ask for another person to open
account with proper ID. A
4. If customer disputes, CSR
should provide customer
appropriate Equifax phone
number.
Active Duty Alert:
1. CSR informs customer cannot
sign for service using information
provided due to Active Duty Alert
unless comes into the office with
proof of identity.
Credit freeze. 1. CSR to notify supervisor who No response is needed.
will contact Equifax to find out
reason for credit freeze — ID issue
or bad credit.
2. If ID issue, customer requested
to come to office with proper ID —
driver's license or passport or
someone else should sign for
account.
3. If bad credit, charge deposit
and let customer sign for service.
5 048
Azusa Light &Water
Identity Theft Prevention Program
Flag Next Step Mitigation
Ste s to Control Losses
Notice of address 1. If different types of addresses Not opening a new
discrepancy. appear in credit report within a account.
Unusual patterns of short timeframe, request Contact Equifax.
activity. customer come to office to sign Notifying law enforcement.
for service.
2. Request new signature
provides photo ID to validate
they are who they say they are
and proof that they will be
residing at the address (loan
documents/rental agreement,
etc.)
3. Charge deposit.
Presentation of
Suspicious
Documents
Identification 1. CSR informs customer cannot Not opening a new
documents appear sign for service. account.
altered or forged. 2. Customer must provide other Notifying law enforcement.
proof of ID. DL or Passport and
pay a deposit.
3. Ask for another person to
open account with proper ID.
Photo/physical 1. CSR informs customer cannot Not opening a new
description does not sign for service. account.
match applicant. 2. Customer must provide other
proof of ID. DL or Passport and
pay a deposit.
3. Ask for another person to
open account.
6
049
P
Azusa Light &Water
Identity Theft Prevention Program 1
Flag Next Step Mitigation
(Steps to Control Losses
Other information on 1. CSR informs customer Not opening a new
identification is cannot sign for service'. account.
inconsistent with 2. Customer must provide
information given by other proof of ID. DL or
applicant. Passport and pay a
Information in utility files is deposit.
inconsistent with 3. Ask for another person
information provided. to open account with
Example — signatures do proper ID.
not match on signature
card.
Application (low income) 1. CSR informs customer Not accepting application
looks altered or forged or cannot accept application.
destroyed and 2. Have customer provide
reassembled.. ID.
3. Have another i
application filled out in the
office.
4. Request customer
provide W-9, IRS filing.
I
Suspicious Personal '
Identifying Information
I
Identification is 1. CSR informs customer Not opening a new
inconsistent with external cannot sign for servicei account.
source such as: 2. Customer must provide
Address vs. other proof of ID. DL or
Address on Passport and pay deposit.
Consumer Report 3. Ask for another person
- Social security to open account with
number not issued. proper ID. "
- Social security
number on Death
Master file.
Inconsistent
information, such as
lack of correlation i
between date of birth
and social security
number.
7
050
I
Azusa Light&Water
Identity Theft Prevention Program
Flag Next Step Mitigation
Ste s to Control Losses
Identification is known to 1 . Do not open account. Not opening a new
be associated with 2. Contact Equifax. If account.
fraudulent activity: they advise to proceed
- The address is with.another applicant:
fictitious, a prison or a) Ask for another person
a mail drop on to open account with
application. proper ID.
- The phone number b) Charge a deposit.
is invalid or
associated with a
pager or answering
service.
The social security
number is the same
as that submitted
by other persons
opening an
account.
Applicant fails to provide 1. CSR informs customer Not opening a new
all personal ID requested. cannot sign for service. account.
2. Customer must provide
other proof of ID. DL or
Passport and pay a
deposit.
3. Ask for another person
to open account with
proper ID.
Customer is not required
to provide SSN. If they
decline, charge a deposit.
Personal ID is inconsistent 1. CSR informs customer Not opening a new
with utility records. cannot sign for service. account.
2. Customer must provide
other proof of ID. DL or
Passport and pay a
deposit.
3. Ask for another person
to open account with
proper ID.
s
051
I
Azusa Light&Water
Identity Theft Prevention Program
i
Flag Next Step MiCon=trol
(Steps to osses
If we decide to use Ask challenge question(s). Account information
challenge questions, the cannot be given if answers
person attempting to to challenge steps are
access or open the incorrect.
account cannot provide
any information beyond
what would typically be
found in a wallet or
consumer report.
Change of billing address 1 . Customer gives address Do not change mailing
is followed by request for or utility account number. address.
adding additional 2. Identifies themselves by Do not add additional
properties to the account giving last four digits of name to account.
(or shortly following the Social Security number. Contact customer on
notification of a change in 3. Before adding I record to verify mail
address, the utility authorized users on the address.
receives a request for the account, CSRs must j Contact customer on
addition of authorized speak with the user being record to verify addition of
users on the account added and inform they'are name to account.
equally responsible forithe
account. Must get Social
Security number, run an
Equifax POS ID, phone
number of authorized user
and add info to phone j
number tab/employment 2
tab (co-tenant) field. i
Payments are made in a Place account on Cash Notify law enforcement.
manner associated with Only. Monitor account for
fraud. For example, evidence of identity theft.
deposit or initial payment
is made and no payments
are made thereafter.
Existing account with a 1. Contact customer on Monitor account activity.
stable history shows record to verify if still living
irregularities. there. 1
2. Ask customer to come
to office with proper ID:
3. Contact Equifax.
9 d
Azusa Light&Water
Identity Theft Prevention Program
Flag Next Step Mitigation
Ste s to Control Losses
Mail sent to customer is Contact customer by If no response, turn off
repeatedly returned. phone or send tag and account.
follow-up.. Have customer verify ID
and submit correct mail
address.
Customer notifies utility 1. Have customer contact Monitor account for
that they are not receiving Post Office. evidence of identity theft.
their bill. 2. Have customer give
another mail address.
Utility is notified of 1. Place account on Cash Contact customer.
unauthorized charges or Only.
transactions in connection 2. Monitor account for
with a customer's account. evidence of identity theft.
Utility discovers multiple 1 . Place account on Cash Contact customer.
red flags on the same Only. Notify law enforcement.
account. 2. Customer must come to
office with proof of ID. DL
or Passport.
3. Contact Equifax.
4. Ask for another person
to open account with
proper ID.
Utility is notified by law 1 . Place account on Cash Monitor account for
officials or others, that it Only. identity theft.
has opened a fraudulent 2. Customer must come to
account for a person the office with proof of ID.
engaged in identity theft. DL or Passport.
3. Bill a deposit.
4. Ask another person to
open account with proper
ID.
10 X53
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedu"re
Breech in Security
Policy: Azusa Light.& Water complies with the FACT Act by:
B. Preventing, Detecting and Mitigating Breeches in Security—by Non-
Employees
To prevent identity theft by non-Utility employees, customer information is to be kept
out of visual sight of other customers. Customer information is only to be discussed
with customer of record. Customer will be identified by utility account number or
service address plus last four digits of account holder's Social Security number or
answer to a challenge question. Exception — if customer informs utility who they
want selected information shared with. y
1 . In the event of a breech of security, to mitigate damage immediately notify the
Customer Operations Supervisor. The supervisor will instruct who is to alert
others to contain and secure the area. 1I1
1
2. Further notification within the utility will include the Privacy Officer and the
Director of Utilities. !
3. Customers affected by the breech will be contacted by telephone within one
business day, followed by a letter. N
4. If there was identity theft involved and the source of the breech is proven to
be the Utility, the Utility will pay for one year of identity protection provided by
a bank for each affected customer. I
J�
1
tf 054
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedure
Breech in Security
Policy: Azusa Light & Water complies with the FACT Act by:
B. Preventing, Detecting and Mitigating Breeches in Security—by
Employees
1. To prevent identity theft by Utility employees, Utility has limited exposure of
secured information by creating a professional standard with a "need to know'
policy with all confidential information. Management has been trained to
recognize signs of employee theft including: sifting through waste
receptacles, downloading excessive amounts of consumer information, using
secured terminals without authorization, etc.
2. In the event of a breech of security, to mitigate damage immediately notify the
Customer Operations Supervisor. The supervisor will instruct who is to alert
others to contain and secure the area.
3. Further notification within the utility will include the Privacy Officer and the
Director of Utilities.
4. If there was identity theft involved and the source of the breech is proven to
be the Utility, the Utility will pay for one year of identity protection provided by
a bank for each affected customer.
tz
055
r
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedure
Disposal of Records
Under Protective Procedures
Policy: Azusa Light & Water complies with the FACT Act by:
C. Records Disposal
1. Azusa Light & Water will collect and protect documents and data until the time
of destruction.
a. Paper The exposure of customer secured information in the office
will be monitored. Any paper with customer information will be
destroyed by the custodial CSR as soon as he/she is finished with it by
running it through a cross-shredder. This includes any notes from
opening a new account, assisting a customer with their bill, billing,
collections, faxes, and any other paper with customer information not
specifically stated here. t
This also applies to Field Services. Any papers with customer
information will be kept in locked vehicle during the day.
At end of day all sensitive papers will either be destroyed in a shredder
or put in a designated locking drawer or vault.
The FTC recommends records be burned, pulverized, cross-shredded.
b. Electronic records will be erased for destruction.
C. CDs will be broken.
2. For archived records, Utility maintains records of data destruction to include
content, date and method of destruction. Documentation is required to verify
the destruction. I
a. The destruction of records will be scheduled on annual basis to
minimize possible exposure of information as well as excess
storage of records.
13 056
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedure
Responding to Notices of Address Discrepancies
Policy: Azusa Light & Water complies with the FACT Act by:
D. Responding to Notices of Address Discrepancies
1. Azusa Light & Water will furnish a confirmed address to the consumer
reporting agency (CRA), Equifax, under the following conditions:
a. Utility can form a reasonable belief the consumer report relates to the
consumer about whom the user requests the report.
b. Utility will note the request and date on customer's account.
2. Confirmation of address will be provided by utility to CRA within 3 business
days verbally to a person known to be an associate of CRA.
3. Customers contacting the Utility with an address change or discrepancy must
identify self with service address or Utility account number and last four digits
of Social Security number or secret number.
14 057
t
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedure
Identity Theft Prevention Training
i
Policy: Azusa Light & Water complies with the FACT Act by:
1
E. Providing Designated Employees with Identity Theft Prevention Training
1. Designated employees will be trained on a need to know basis
according to job responsibilities.
2. Initial training is provided on 3 levels
Committee members participated in a 2 hour Identity Theft Prevention
Program workshop covering principles:of needs assessment, program
design, development, implementation and evaluation. Strategies for
revision and reporting were included. Committee members unable to
attend will receive one-on-one training'by a workshop attendee.
l
Supervisors — Initial 2 hour program addresses supervisory role in
preventing identity theft. I
Employee — Initial 2 hour program addresses the safeguarding of
secured information. 1
3. Annual updates will be provided for all designated employees.
Sessions to be a minimum of 30 minutes and will include, but not
limited to:
Patterns of incidents, changes in information technology, changes in
methods of identity theft, and results of evaluations.
I
Input from employees for enhancing Identity Theft Prevention Program.
{
4. Training will be documented by an attendance list signed by each
employee attending training. "
I
5. New employees hired into positions handling secured information will
receive initial training within one montli of start date.
I�
I
15 058
Azusa Light&Water
Identity Theft Prevention Program
Policy and Procedure
Handling Reports of Suspected Identity Theft
Policy: Azusa Light & Water complies with the FACT Act by:
F. Handling Reports of Suspected Identity Theft
1. When a consumer suspects identity theft he must notify the utility in
writing, completing the Federal Trade Commission Affidavit.
Instructions for completion are a part of the form.
2. Customer will be requested to submit copy of affidavit with police
report.
3. Make a copy of the customer's photo ID.
4. Record the receipt of documents.
5. Submit the copies of the FTC affidavit, police report and photo ID to
Assistant Director Customer Care & Solutions.
6. Review impact on customer's account with customer, including what to
do to minimize this going forward.
16
059
NOTICE OF IDENTITY THEFT (form)
Party Submitting the Information (Consumer)
Name: !
Address: I
Date and Time of Receipt:
Verification of Consumer Identity:
iI
Details of alleged ID theft: 1
}1
1
Signature: 1
I acknowledge receipt of this notice. The information that has been reported as
resulting from identity theft:
Has been blocked
Has not been blocked for the following reason(s):
I
E
17 060
1
Instructions for Completing the ID Theft Affidavit (form)
To make certain that you do not become responsible for any debts incurred by an
identity thief, you must prove to each of the companies where accounts were
opened in your name that you didn't create the debt. The ID Theft Affidavit was
developed by a group of credit grantors, consumer advocates, and attorneys at the
Federal Trade Commission (FTC) for this purpose. Importantly, this affidavit is only
for use where a new account was opened in your name. If someone made
unauthorized charges to an existing account, call the company for instructions.
While many companies accept this affidavit, others require more or different forms.
Before you send the affidavit, contact each company to find out if they accept it. If
they do not accept the ID Theft Affidavit, ask them what information and/or
documentation they require.
You may not need the ID Theft Affidavit to absolve you of debt resulting from identity
theft if you obtain an Identity Theft Report. We suggest you consider obtaining an
identity Theft Report where a new account was opened in your name. An Identity
Theft Report can be used to (1) permanently block fraudulent information from
appearing on your credit report; (2) ensure that debts do not appear on your credit
reports; (3) prevent a company from continuing to collect debts or selling the debt to
others for collection; and (4) obtain an extended fraud alert.
The ID Theft Affidavit maybe required by a company in order for you to obtain .
applications or other transaction records related to the theft of your identity. These
records may help you prove that you are a victim. For example, you may be able to
show that the signature on an application is not yours. These documents also may
contain information about the identity thief that is valuable to law enforcement.
This affidavit has two parts:
• Part One —the ID theft Affidavit— is where you report general information
about yourself and the theft.
• Part Two —the Fraudulent Account Statement— is where you describe the
fraudulent account(s) opened in your name. Use a separate Fraudulent
Account Statement for each company you need to write to.
When you send the affidavit to the companies, attach copies (NOT originals) of any
supporting documents (for example, driver's license or police report). Before
submitting your affidavit, review the disputed account(s) with family members or
friends who may have information about the account(s) or access to them.
Complete the affidavit as soon as possible. Many creditors ask that you send it
within two weeks. Delays on your part could slow the investigations.
18 4��
Be as accurate and complete as possible. You may choose not to provide some of
the information requested. However, incorrect or incomplete information will slow
the process of investigating your claim and absolving the debt. Print it clearly.
d
When you have finished completing the affidavit, mail a copy to each creditor, bank
or company that provided the thief with the unauthorized credit, goods, or services
you describe. Attach a copy of the Fraudulent Account Statement with information
only on accounts opened at the institution to which you are sending the packet, as
well as any other supporting documentation you are able to provide.
I
Send the appropriate documents to each company by certified mail, return receipt
requested, so you can prove that it was received. The companies will review your
claim and send you a written response telling you the outcome of their investigation.
Keep a copy of everything you submit.
If you are unable to complete the affidavit, a legal guardian or someone with power
of attorney may complete it for you. Except as noted, the information that you
provide will be used only by the company to process your affidavit, investigate the
events you report,and help stop further fraud. If thi's affidavit is requested in a
lawsuit, the company might have to provide it to the requesting party. Completing
this affidavit does not guarantee that the identity thief will be prosecuted or that the
debt will be cleared.
0
If you haven't already done so, report the fraud to the following organizations:
I
1. Any one of the nationwide consumer reporting companies to place a fraud alert
on your credit report. Fraud alerts can help prevent an identity thief from operating
any more accounts in your name. The company you call is required to contact the
other two, which will place an alert on their versionsl'Iof your report, too.
Equifax: 1-800-525-6285; www.equifax.com
Experian: 1-888-EXPERIAN (397-3742); www.experian.com
TransUnion: 1-800-680-7289; www.transunion.com
i
In addition, once you have placed a fraud alert, you're entitled to order one free
credit report from each of the three consumer reporting companies, and if you ask,
they will display only the last four digits of your Social Security number on your credit
reports.
2. Contact the security or fraud department of each company where you know or
believe accounts have been tampered with or opened fraudulently, then close the
accounts. Follow up in writing, and include copies (NOT originals) of supporting
documents. It's important to notify credit card companies and banks in writing.
Send your letters by certified mail, return receipt requested, so you can document
what the company received and when. Keep a file of your correspondence and
enclosures.
19 062
When you open new accounts, use new Personal Identification Numbers (PINs) and
passwords. Avoid using easily available information like your mother's maiden
name, your birth date, the last four digits of your Social Security number, your phone
number, or a series of consecutive numbers.
3. Your local police or the police in the community where the identity theft took
place. Provide a copy of your ID Theft Complaint filed with the FTC (see below), to
be incorporated into the police report. Get a copy of the police report or, at the very
least, the number of the report. It can help you deal with creditors who need proof of
the crime. If the police are reluctant to take your report, ask to file a Miscellaneous
Incidents" report, or try another jurisdiction, like your state police. You can also
check with your Attorney General's office to find out if state law requires the police to
take reports for identity theft. Check the Blue Pages of your telephone directory for
the phone number or check www.naag.org for a list of state Attorneys General.
4. The Federal Trade Commission. By sharing your identity theft complaint with the
FTC, you will provide important information that can help law enforcement officials
across the nation track down identity thieves and stop them. The FTC also can refer
victims' complaints to other government agencies and companies for further actions,
as well as investigate companies for violations of laws that the FTC enforces.
You can file a complaint online at www.consumer.clov/idtheft. If you don't have
internet access, call the FTC's Identity Theft Hotline, toll-free: 1-877-IDTHEFT (438-
4338); TTY: 1-866-653-4261; or write: Identity Theft Clearinghouse, Federal Trade
Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580. When you
file an ID Theft Complaint with the FTC online, you will be given the option to print a
copy of your ID Theft Complaint. You should bring a copy of the printed ID Theft
Complaint with you to the police to be incorporated into your police report. The ID
Theft Complaint, in conjunction with the police report, can create an Identity Theft
Report that will help you recover more quickly. The ID Theft Complaint provides the
supporting details necessary for an identity Theft Report, which go beyond the
details of a typical police report.
DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER
GOVERNMENT AGENCY
20 0631
I
Name Phone Number
ID Theft Affidav it
i
I
Victim Information i
1) My full legal name is
(First) (Middle) (Last) (Jr., Sr., III)
2) If different from above) When the events described in this affidavit took place
I was known as
(First) (Middle) (Last) (Jr., Sr., III)
3) My date of birth is
(day/month/year)
4) My Social Security number is
i
5) My driver's license or identification card state Iand number are
6 MY current address is
City State ( Zip Code
7) 1 have lived at this address since
(month/year)
8) (If different from above) When the events described in this affidavit took
place, my address was I
City State Zip Code
i
9) 1 lived at the address in Item 8 from to
(month/year) (month/year)
10) My daytime telephone number is
My evening telephone number is ( )
DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER
GOVERNMENT AGENCY
z' I
064
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedure
Conducting IT Audits to Monitor Risk for Identity Theft
Policy: Azusa Light & Water complies with the FACT Act by:
G. Conducting IT Audits to Monitor Risk for Identity Theft
1. Semi-annually, Azusa IT will utilize the Identity Theft Prevention
Program Checklist to audit and evaluate internal and external identity
theft risk in information technology security. Personnel conducting the
review will sign off.
2. Walk through inspections will be completed on a quarterly basis by the
Customer Service Operations Supervisor or Assistant Director
Customer Care & Solutions. Inspections and audits will be documented
and signed off.
3. Recommendations to reduce risk of identity theft will be submitted for
program review and evaluation upon completion of an audit checklist.
Results will be submitted to the privacy officer within three business
days of completion of the evaluation.
22 065
Azusa Light &Water I
Identity Theft Prevention Program
9
1
Policy and Procedure
Confidentiality of Medical Records
i
A
Policy: Azusa Light & Water complies with the FACT Act by:
1
H. Confidentiality of Medical Records
1. Azusa Light & Water will treat all medical information pertaining to the
customer as confidential.
Definition:
Medical information is information or data, whether oral or recorded, in any
form of medium, created by or derived from a health care provider or the
consumer that relates to:
• The past, present, or future physical, mental, or behavioral health care
to an individual;
• The provision of health care to an individual; or
• The payment for the provision of health care to an individual
1
2. Medical information will not be used in the determination of a consumer's
eligibility for services. 1
3. Azusa Light & Water will not release medical information to third parties.
4. Rescue Squads, government entities that require the location of citizens on
ventilators for planning purposes will be provided the information upon the
written permission of the customer.
l
23
066'
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedure
Reports, Reviews and Updates for Policy Enforcement
Policy: Azusa Light & Water complies with the FACT Act by:
I. Requiring Identity Theft Policies and Procedures For External Business
Partners With Custody/Access to Utility Customer Information
1. External business partners with access to Azusa Light & Water
customer information provide the following services:
• Customer Information System
• Collection Agency
• Processing Main-In Payments
• Printing and Mailing Bills
• Administering Online Billing and Payments
• Processing Debit/Credit Card Payments
2. These companies shall be required to have written policies and
procedures that meet the Identity Theft Prevention Program of Azusa
Light & Water.
3. External business partners will be requested to sign a form confirming
they have a policy that includes security of information and their
commitment to treat our utility customer information as confidential.
New contracts will include this requirement.
4. Azusa Light & Water will conduct Identity Theft/Red Flags Compliance
audits of these companies every two years.
5. External business partners are subject to loss of Azusa Light & Water
business if (a) information security policies are not in place, (b)
Agreement is not signed, (c) policies do not pass audit, or (d) breech of
information occurs as a result of external business partners process.
24 067
4
Azusa Light &Water
Identity Theft Prevention Program
Policy and Procedure
Reports, Reviews and Updates for Policy Enforcement
Policy: Azusa Light & Water complies with the FACT Act by:
J. Call recording I
1. Access to all recorded calls will be limited to Assistant Director
Customer Care & Solutions,Customer Service Operations Supervisor
.and designated IT representative. These are all password
protected.
2. Customer Service Representatives will have password access to listen
to their own recorded calls.
3. Customer information on recorded calls is to be shared only with
necessary Utility personnel.
4. Recorded calls will be stored on CDs and archived for one year in a
locked secure location, then CDs will be destroyed by breaking them.
R
d
d
25 068
Azusa Li &
Water
Light
Identity Theft Prevention Program
Policy and Procedure
Reports, Reviews and Updates for Policy Enforcement
Policy: Azusa Light & Water complies with the FACT Act by:
K. Reports, Reviews and Updates for Policy Enforcement
The following pages contain Identity Theft Prevention Program Incident
Report forms.
26
069
Identity Theft Prevention Program Incident Report
Azusa Light & Water
Date: August 21 , 2008
Prepared by: Karen Vanca A
(Employee designated to track and record information)
Committee Members:
Karen Vanca Privacy Officer/Assistant Director Customer Care
& Solutions i
Rachel Tapia Customer Service Operations Supervisor
Janette Monreal CSR — front office
Monika Bauer analyst— credit &Icollections, reporting,
back office operations
Rosa Scholes CSR — billing
Ann Graf IT security/Director of Information Technology
It is the policy of Azusa Light & Water to provide an Identity Theft Prevention
Program for customers and employees. The purpose of this report is to promote
continued evaluation of effectiveness of current policies ana procedures in
compliance with the FACT Act (2003). This document will be used to document
recommendations for changes to the program due to evolving risk and methods of
theft.
i
1
27 '
NO
I
Date Employee Description of Management Mitigation
Incident or Response
"Significant Event"
28 071
E
Identity Theft Prevention Program Incident Report
3
Describe current strengths of Utility Identity Theft Program.
i
6
i
I
Describe areas for Improvement.
9;
1
I
e
I
Goals for Steps Needed Person(s) Date
Improvement Responsible
Committee Signatures I
(Name) (Title) ( (Date)
(Name) (Title) (Date)
I
(Name) (Title) I (Date)
(Name) (Title) i (Date)
(Name) (Title) (Date)
29
072
Azusa Light &Water
Identity Theft Prevention Program
VII. Operations Checklist
Identity Theft Prevention Program Red Flags Implementation Checklist for
Utilities
Privacy Officer: Karen Vanca Date
Committee Members: Rachel Tapia Janette Monreal
Ann Graf Monika Bauer
Question Comment Yes/No
Date
Has a privacy officer and Yes
committee been established? 8/21/08
Does the committee have Yes
representations from at least 3 8/21/08
key areas?
Are defined responsibilities Yes
outlined for committee 8/21/08
members?
Is there'a written identity theft Yes
prevention plan? 8/21/08
Does the written plan provide a utility utility Write
policy/procedure for: Policy Policy Next Policy
Complies Revision
1. Preventing/Identifying and Yes
Mitigating Red Flags?
2. Handling a breech in Yes
security?
3. Record disposal? Yes
4. Customer request records? Yes
30 073
Azusa Light &Water
Identity Theft Prevention Program
1
Question Comment Yes/No
Date
5. IT security internal? Yes
6. IT security external? ( Yes
7. Training key employees Utility Utility Write
handling sensitive information? Policy Policy Next Policy
Complies Revision Yes
8. Privacy Officer/Committee
Members roles/terms of
service/method for Yes
appointment?
9. Program assessment and i Yes
revision? I
10. Program reports tracking
incidents & resolutions — report
to Director of Utilities and Board Yes
of Directors?
11. Opening new account? Yes
12. Monitoring existing account? Yes
Utility has requested from local Name of Contact and Contact
identity theft police Info: Dispatch Center and patrol
officer/detective: officer will do initial
Reporting procedures and investigation/report. Any follow- Yes
document training? up: Detectives Don Manley at
812-3282 or Brandon Saenz at
812-3227.
I
All current employees involved Names of Date
in handling sensitive information Employees Trained Trainer
have received identity theft J. Adams 10-08 K. Vanca Conducted
prevention training/red flags? M. Bauer 10-08 K. Vanca 10/08.
B. Bommarito 10-08 K. Vanca
S. Bowman 10-08 K. Vanca
C. Cusick 10-08 K. Vanca
31
074
Azusa Light &Water
Identity Theft Prevention Program
Question Comment Yes/No
Date
Names of Date
Employees Trained Trainer
E. Ditsler 10-08 K. Vanca
G. Espinoza 10-08 K. Vanca
J. Monreal 10-08 K. Vanca
J. Pryor 10-08 K. Vanca
M. Onate 10-08 K. Vanca
M. Sencion 10-08 K. Vanca
R. Scholes 10-08 K. Vanca
M. Villegas 10-08 K. Vanca
A. Hartman 10-08 K. Vanca
A. Guerrero 10-08 K. Vanca
P. Reid 10-08 K. Vanca
D. McFann 10-08 K. Vanca
New employee training is Yes
addressed in policy?
Staff is informed of the Yes
consequences of breaking
security regulations in training
session?
External business partners Customer Information System
have written identity theft Collection Agency
prevention policies Processing Main-In Payments Yes
Printing and Mailing Bills
Administering Online Billing and
Payments
Processing Debit/Credit Card Yes
Payments
Utility conducts audits of
identity theft policies of
external business partners In Plan
every 2 years.
Access to all recorded
customer calls are limited to
assistant director, operations Yes
supervisor and designated IT
personnel.
32 075
Azusa Light &Water
Identity Theft Prevention Program
Question Comment Yes/No
E Date
Each CSR can only access their
own customer calls and
information is kept confidential. Yes
Recorded calls are archived in a Working on this.
locked location.
33
076
Azusa Light &Water
Identity Theft Prevention Program
IT Needs Assessment
Identity Theft Prevention Program Red Flags IT Checklist
Date Completed 09/03/08
Completed By Ann Graf for internal Information Systems
Karen Vanca for external vendors
34 077
Azusa Light&Water j
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
I
Question Comment Yes/No
I Date
IDTPP updates are provided on IT committee member only as
a continual basis to key applicable.
employees: trends in theft, i Yes
legislation, IT as well as best
practices/mitigation
procedures? +
Procedures for employees as Checklist is provided by Human Yes
they leave the utility? Resources.
I
Consultants sign written 3` In contracts with vendors. Yes
party contracts which outline
the consequences of breaking
security regulations?
Are there any routines for the Cancel door keypad entry Yes
end of assignments? code, return entry'card to
computer room, remove
computer access.i
Information Classification
Is there a system for I Yes
information classification I
according to the appropriate
level of availability? (e.g., I
open, confidential, secret)
Does the classification system Yes, per
require encryption for any class , vendors
or type of information?
Is there a classification Vendor keeps logs. Yes
checklist to make it easy for the I
user to determine information
class?
I
0
I
35 078
Azusa Light &Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
Date
Software
Are policy documents and Security features must be Yes
security guidelines considered implemented from the
during developing systems? beginning.
Are security requirements The requirements must be Yes
included in the demand included from the beginning
specification when buying or
developing systems?
Are system tests and Yes
development separated from
production systems?
Are security-related patches Routine will include a download Yes
from developers and/or to a test environment.
vendors implemented as soon Implemented upon completion
as possible? of testing.
Is a security validation Yes
approval done before
introducing new software?
Individual users should not be
allowed to introduce new
software.
Is there a routine for installing Yes
a new operating system?
Is it a classified operating N/A
system?
36
079
Azusa Light &Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
I
Question Comment Yes/No
I Date
Are there any routines to Yes, per
change all security related vendors
default parameters in the
operating system?
Is it the same type of routine J Yes
for application software? !I
Is software well-documented? Yes
If system crashes, do security
procedures exist for getting the,
system back up?
Are there any routines to
request all patches that are
needed to preserve security?
i
Are "system tools" (software to Yes
administer and service the
system) protected?
Is the use of "system tools" Yes
restricted to just a few
persons?
Is all use of "system tools" I Yes
logged?
Is anti-virus software installed { Yes
and activated? 1
Do the users know how to Call Help desk Yes
handle viruses?
Are there any extended i Yes
controls of software
downloaded from WAN such
as Internet?
I�
yI
i
1
37 1
080
Azusa Light &Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
Date
Are users informed about Not Allowed Yes
software licenses, as to what
extent they are allowed to copy
them and use them in other
equipment? If they are allowed
to use them for private use at
home, etc?
Is loading of new software Yes
regulated?
Is critical software backed up Yes
and stored in another safe
place?
Is critical software protected by N/A
checksums?
Is all software from well-known Yes
sources?
Hardware
Are there any instructions for Employees are not allowed to Yes
bringing equipment from plug outside equipment into our
outside to the organization? network.
Are there instructions on how to Yes
discard equipment?
Is it made clear that the Appropriate use policy Yes
equipment is for business use
only and not for private use by
the user?
38 081
k
Azusa Light &Water
Identity Theft Prevention Program i
IT NEEDS ASSESSMENT
r
Question Comment Yes/No
Date
Are policy documents and Yes
security guidelines considered 9
during introduction of new
equipment?
Are security requirements The requirements must be
included in the demand included from the beginning.
specification when buying or !
changing equipment? I
Is a security validation made New hardware might create Yes
before introducing new new holes in the system.
hardware? I
Is there a person responsible IT Dept Yes
for each workstation/personal
computer?
Documentation
Is the management policy
document printed and
distributed to all members of Yes
staff and subsequently to new
members?
Are systems and manual To prevent the dependence on Some
routines well documented? key-persons.
4
1
3 •
1
dI
1
39 9 082
Azusa Light &Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
Date
Are there hard copy or online Inventory
documents describing: Yes
• Hardware?
• Software? Yes
• Applications? Yes
• Communication? Yes
Are they up to date? Yes
Do handbooks or online N/A
documents for each staff
category exist?
• Developer
• Administrators (network, Yes
database, etc.)
• Users N/A
• Helpdesk Yes
Are there written rules defining Responsibilities are shared and No
responsibility and authority for authority is dictated on
each staff category? responsibility.
Are system documents stored Also Online Yes
in a safe place?
Do security logs track log-ins, Yes
users and application?
40 083
i
i
Azusa Light &Water A
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
Date
Computer Media
Are there any routines for Yes
labeling media?
Is the existence of media Media in the inventory list. Yes
checked on a regular basis?
Are there any routines to I Yes
handle missing media?
Are there any routines for Back up server on nightly basis Yes
archiving media? and archive.
Are there any routines for Yes
transporting and storing
media?
Are there any routines for Degauss tape Yes
destroying media? Break CD
Are there any routines for how t Yes
to handle media during p
service?
Identification and
Authorization I
Does the system include Depends on system Yes
logging and alary functions?
For example, if someone t
attempts to log in 3 times
unsuccessfully, is a message
sent to the network
administrator?
Does the system include I Yes
access control to
resources/objects? II
1
41 084
Azusa Light &Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
Date
Is it quality tested on Minimum of 5 characters with at Yes
password/PIN? least 1 alphabetic or numeric
characters mixed.
Is it possible to reuse old No, except
passwords/PIN? for Systems
& Software
Is it possible to use the user ID No, except
as password/PIN? for Systems
& Software
Are there any routines to Yes
change software default
passwords?
Upon installation, is the Yes
software default password
changed?
Is the number of log in Yes, per
attempts limited? vendors
Is the change of password/PIN For Systems & Software Azusa Yes except
compulsory after a certain opted not to use this feature. for Systems
number of days? & Software
Does the system block an Yes, except
account if the password is not for Systems
changed within the time limit or & Software
the account has remained
unused?
Is it possible for a user to No
change their privileges?
42
085
Azusa Light &'Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
i Date
Is the password/PIN Should never be transported or Yes, per
encrypted? (one way stored in an unencrypted way. vendors
encryption)
Is the password/PIN Must be. ' Yes, per
individual? vendors
l
System Securityl
Is there a routine to ensure the Yes
correct date and time in all
systems and are they I
synchronized?
Are there enhanced logging I Yes
facilities in critical systems?
i
Are open ports on HUB Yes
blocked?
Is the network administrator Yes
privilege restricted to a few
users?
Is all network hardware (HUB, Yes
Repeaters, Routers,
Gateways, etc.) well
protected?
Is the software in the network Alerts system administrator Yes
hardware well protected? Use i
strong authentication for
changing the software or i
configuration.
I
f
1
43 086
Azusa Light &Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
Date
Internal Protection - Is there
an IDS (Intrusion Detection Yes
System) to limit access to the
Data Center?
Protection from Outside Yes
Sources — Is a firewall
installed?
Is there a routine for the Yes
administration of the firewall?
Is access to communication Yes
ports for service protected?
Are the safeguards (including Yes
encryption when needed)
considered regarding:
• E-mail?
• FTP? Yes
• PPP? Yes
• EDI? Yes
• SNMP? Yes
• DNS — services? Yes
087
i
Azusa Light &Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
Date
• Routing? Yes
• Java, Javascript? I Yes
• ActiveX ? Yes
• Finger? Yes
• Rlogin? I Yes
• Cookies? Yes
Are VPN (Virtual Private Limited
Networks) used?
Loggingj
Are the log files protected Yes
against unauthorized access?
Is the system configured in a I Yes
way that the log must be I
turned on?
What events are logged: Yes
• Login?
• Logout? I Yes
9
• Failed login? f Yes
• Exceptional behavior? Yes, per
I vendors
s
• Access violation? Yes
• Activities in the Identification Confirming with vendors
and Authorization system?
45 ��f7
Azusa Light&Water
Identity Theft Prevention Program
IT NEEDS ASSESSMENT
Question Comment Yes/No
Date
Physical Protection
Are all premises protected? - Yes
Are computers and network Door alarm in conference room
components placed in an makes the lobby available to No
access protected area? the public at after-hours public
meetings.
Is all system documentation Yes
safeguarded?
Are communication lines Yes
protected?
Is there an admission and Yes
leaving control system with a
log?
Server room is under lock and As long as door isn't propped Yes
key. open.
Is there an up-to-date list with Yes
authorized people?
Incident Handling
Is there a plan for how to Yes
handle identity theft incidents?
Contingency Planning
Is there a contingency plan for Confirming with vendors.
how to recover the system after
an identity theft incident?
46
089
s
A
AZUSA
enr w marry
SCHEDULED ITEM
1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL 7 J
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2008 ✓✓✓ /
1
SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO LODI#2 PROJECT PHASE 2
PLANNING AND DEVELOPMENT AGREEMENT
r
RECOMMENDATION tl�
It is recommended that the Utility Board/City Council approve the city's continued participation
in Phase 2 planning and development activities of Lodi #2 Project by approving the Amendment
No. 1 to Phase 2 Planning and Development Agreement at a not-to-exceed budget of$412,000;
and authorize the Mayor to execute the Amendment No. 1.
BACKGROUND
At November 26, 2007 Utility Board meeting, the Utility Board/City Council approved in the
City's participation in Phase 2A planning and development activities of Lodi #2 Project.
1
Lodi #2 Project is a 255 Megawatt (MW) combined cycle natural gas fueled generation project
being developed by the Northern California Power Agency (NCPA) at a site in the City of Lodi
located about 50 miles southeast of Sacramento. The proposed City's participation in the
planning and development phase is for 7 MW of electric power or about 2.8% of the total
project.
Lodi #2 Project became a formal project in mid March, 2008 when all the project participants
obtained the appropriate authorization and executed the Phase 2 planning and development
agreement. The City's financial commitment through the Phase 2A of the agreement is $450,000.
1
On May 27, 2008 the Utility Board further approved City's',participation in Phase 2B planning
and development at a not-to-exceed cost of $250,000. The Phase 2B activities are been
completed with a major milestone achieved by filing with the California Energy Commission for
an Application for Certification ("AFC") on September 10, 2008. The AFC process is expected
to take twelve months to complete.
090
In recent months the Project Participant Committee ("PPC") has reviewed the project timeline
and the upward cost pressure the project is facing. The PPC, at its June 30, 2008 meeting,
acknowledged that in order for the Project to attain its targeted commercial operation date in
early 2012, certain long lead time power island equipment may need to be ordered, or a
production time secured, 24 to 33 months in advance of the projected commercial operation date.
In order to investigate and possibly take action to secure critical equipment pricing and delivery
scheduling, the PPC directed the Northern California Power Agency("NCPA") the Project
Manager, to prepare critical equipment specifications to issue to market vendors in order to
receive and evaluate options and proposals to provide more control over equipment delivery
timing and pricing. The PPC further directed that the Project Manager lease any needed
warehouse and administration facilities at or proximate to the Project site in order to provide for
adequate staff workspace and for the secure storage of Project equipment and materials. To
attain the necessary authorizations for these activities, the PPC directed the Project Manager to
amend the existing Agreement to incorporate actions related to assuring equipment delivery
timing and pricing, and the leasing of any needed warehouse and administration facilities within
the scope of Phase 213 activities and to accordingly increase the Phase 2B budget amount by up
to $15 million for such purposes, all actions of which are to be subject to the direction and
approval of the PPC. The City's share of this budget increase would be approximately$412,000.
Prosect Current Status:
Project emission reduction credits ("EACs")have been procured and the CEC permit process is
underway; formal air permit and CEC AFC filings were made in August and September 2008,
respectively. The Project Manager is preparing specifications for key Project power island
equipment which will be reviewed by the PPC prior to the Project Manager's issuance of such
specifications to potential vendors for purposes of receiving proposals to secure equipment
delivery timing and pricing certainty. It is expected that responses from vendors will have been
received and evaluated by the November/December 2008 time frame.
It is anticipated that one or more of the received proposals will incorporate some form of
advance or option payment,possibly as much as $15 million depending on the equipment to be
secured, to attain a defined delivery schedule and equipment pricing. The steam and gas
turbines, and the heat recovery steam generator, together with ancillary equipment, are the likely
critical power island components that will be considered under this equipment option bid
proposal.
Staff seeks Board authorization to approve Amendment No. 1 which revises the scope of the
Project Phase 2B to include activities related to securing a defined equipment production
delivery schedule and known pricing structures for key power island components as well as the
potential leasing of warehouse and storage facilities at or proximate to the proposed Project site.
Specific actions and expenditures undertaken pursuant to the Amendment No. 1 will be subject
to the approval and direction of the PPC, of which the City is a voting Participant. Upon
direction of the PPC, the Project Manager will recommend an invoicing schedule to the PPC to
provide needed funds for any approved actions; if funds are required, invoicing to the City will
likely take place in the December 2008 /January 2009 time frame with funds due to Project
Manager by early 2009.
091
FISCAL IMPACT
The City's continued participation in Phase 2B of the Lodi Project by executing Amendment No.
1 is estimated to cost up to $412,000. Electric Purchase Power operating budget account 33-40-
775-550-6590 was amended in March 2008 and current balance is adequate to cover this
amendment. The total investment by the City in the Project including the requested funding
herein is $1,112,000. t
Prepared by:
Bob Tang, Assistant Director of Resource Management 9
I
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1
1
9t
I
1 '
092
1
1
AMENDMENT NO. 1 TO THE
SECOND PHASE AGREEMENT
FOR
FUNDING THE PLANNING AND DEVELOPMENT
ACTIVITIES
OF THE
LODI ENERGY CENTER
This Amendment No. 1 to the Second Phase Agreement for Funding the
Planning and Development Activities of the Lodi Energy Center ("LEC
Amendment 1") is dated as of September 26, 2008, and is by and between the
Northern California Power Agency, a joint powers agency of the State of
California ("NCPA"), those members and non members of NCPA which have
executed the Second Phase Agreement for Funding the Planning and
Development Activities of the Lodi Energy Center which include the Cities of
Azusa, Biggs, Gridley, Healdsburg, Lodi, Lompoc, Santa Clara and Ukiah, the
Bay Area Rapid Transit District, the California Department of Water Resources,
the Modesto Irrigation District, the Plumas-Sierra Rural Electric Cooperative, the
Port of Oakland, the Power and Water Resources Pooling Authority, and such
other parties as may be identified in Exhibit C of the Agreement from time to
time (collectively, the "Parties"), and
WITNESSETH:
WHEREAS, the Parties have previously entered into a "Second Phase
Agreement for Funding the Planning and Development Activities of the Lodi
1
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved
093
. I
Energy Center" dated November 29, 2007 ("the Agreement") which became
effective on or about March 1, 2008; and
WHEREAS, the Agreement contemplates L1 di Energy Center ("LEC")
development efforts divided into Phase 2A and Ph j se 2B activities as described
in Exhibit A of the Agreement, with total approved budget funding of $25
million consisting of $16 million and $9 million allocated to Phase 2A and Phase
2B activities, respectively; and p
1
WHEREAS, the Parties formed the Project Participant Committee ("PPC")
on March 6, 2008 and have since that date been I nducting Phase 2A Project
I
activities including the preparation of the California Energy Commission
("CEC") Application for Certification ("AFC"), requisite air permit applications,
and the procurement of Emissions Reduction Credits ("ERCs"); and
WHEREAS, on June 30, 2008, the PPC directi ed the LEC Project Manager
to commence Phase 2B activities commencing on orI about August 1, 2008; and
I
WHEREAS, the Project Participants are aware that certain critical power
equipment, such as the natural gas turbine, steam turbine and heat recovery
steam generator components of the power island assembly, require significant
lead times for fabrication and delivery, and thus such equipment must be
I
ordered in a timely manner that supports the LEC's scheduled Commercial
t
Operation Date of April 2012; and
WHEREAS, the Project Participants desire to lease, as needed,
warehousing and administrative facilities at or proximate to the proposed LEC
t
Project site in order to facilitate the timely preparedness for locating staff and
materials ancillary to the planning, design, pengineering and ultimate
construction of the LEC; and
1
WHEREAS, the Project Participants are aware of the recent rapid
escalation of power generation construction and equipment costs and
2
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved [�
094
consequently desire to control the delivered cost of certain LEC power island
equipment by procuring an option or take other actions to secure a known
delivered cost for such equipment; and
WHEREAS, the Parties desire to amend the Phase 2B activities listed in the
Agreement to provide for leasing needed administrative facilities and work areas
to provide adequate space for additional Project staff; and
WHEREAS, the Parties also desire to amend the Phase 2B activities listed
in the Agreement to provide for leasing needed warehouse facilities to house and
protect LEC equipment, specifically the power island components that must be
delivered and stored for several months prior to installation; and
WHEREAS, the Parties desire to amend the Phase 2B activities listed in the
Agreement to provide for the ability to take actions that allows for advanced
equipment ordering of the critical power island equipment, obtaining more
favorable equipment and pricing options, having the option for considering and
choosing more advantageous financing methods; these steps (actions) will result
in significantly more certainty regarding the timely delivery of the equipment,
and in locking-in at an earlier time a lower cost for the LEC equipment; and
WHEREAS, the Project Participants, in order to fund the expected cost to
attain the facilities needed for Project staff and Project power island equipment
delivery timing and price certainty, desire to increase the funding of the Phase 2B
activities authorized by the Agreement budgeted accordingly by up to $15
million, for a total Phase 2B budget amount of $24 million ($9 million currently
approved plus the proposed added $15 million), and thus resulting in a revised
combined Phase 2A and 2B total budget of $40 million ($16 million for Phase 2A
plus the proposed revised Phase 2B amount of$24 million);
3
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved €0 9 5
r
NOW THEREFORE,the Parties hereto agreeasfollows:
r
1. The final WHEREAS statement of the Agreement is deleted in its entirety and
the following is inserted: !
i
"WHEREAS, initiation of the Phase 2B activities consisting of all
remaining Second Phase activities listed in� Exhibit A attached hereto,
including but not limited to the purchase of any remaining required air
pollution emission credits, additional engineering and permitting costs,
leasing warehousing and administrative facilities at or proximate to the
proposed Project site, and actions to secure critical power island
equipment delivery timing and cost certainty, at an estimated additional
I
cost of up to twenty-four million ($24,000,000) dollars, will not be
undertaken by NCPA except upon the Project Members' further
authorization pursuant to the terms of this Agreement, and subject to the
withdrawal of any Project Member after the (completion of Phase 2A and
upon the initiation of Phase 2B."
2. Section 1.(c) of the Agreement is deleted in its infirety and the following is
inserted: I
l
"(c) Upon the Project Members' authorization, provided pursuant
to Section 3 of this Agreement, to undertake Phase 2B activities, NCPA
shall conduct such additional work as may, be necessary, including to
secure a CEC Order approving an Application For Certification of the
Lodi Energy Center, to obtain any further required air emission reduction
credits ("ERCs"), to secure the timely delivery, and cost certainty of critical
1 4
d
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/06 NCPA Commission Approved (S,
� lh
power island equipment, and to lease needed warehouse and
administrative facilities at or proximate to the proposed Project site, to be
determined and agreed to by the PPC. Such activities shall be performed
at an estimated cost of up to twenty-four million ($24,000,000) dollars. The
Parties anticipate that Phase 2A and Phase 2B activities will be completed
by the end of 2009 at a combined total cost not to exceed forty million
($40,000,000) dollars."
3.- Insert the following at the end of the third paragraph of Section 4. of the
Agreement:
Any Project related assets, which includes the procured option for power
island equipment and the lease of warehouse and administrative facilities,
purchased or acquired as authorized by Section 1(c) of this Agreement but
not utilized shall be sold by NCPA pursuant to the PPG's decisions and
procedures and the proceeds distributed proportionately among the
Project Members.
4. Exhibit A of the Agreement is deleted in its entirety and the following is
inserted:
5
LOD]ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.I
9/26/08 NCPA Commission Approved 7
Exhibit A, LEC Amendment LNo. 1
9
PHASE 2A ACTIVITIES INCLUDE
• Finalize Phase 2 Project Participant Agreement l'
• Achieve Phase 2 Agreement execution by all Participants
• Establish Project Participant Committee
• Establish Project Development support and reporting infrastructure
• Establish Project Parameters (duct firing, future expandability, etc.)
• Investigate, appraise and attain necessary land and land rights from the City of
Lodi
• Perform environmental assessments
• Submit application to CEC
• Purchase or secure options for Project ERCs
Phase 2A are activities anticipated to be completed by end of 2008.
1
PHASE 2B ACTIVITIES INCLUDE
• Complete CEC process 1
• Exercise ERC options or fully secure any remaining necessary ERCs
• Develop Phase III and /or PPA agreements for Project commitment and
financing l
• Develop Project Operations Agreement
• Develop Project fuel supply arrangements
• Commence Project detailed engineering and design
• Secure critical power Island equipment delivery timing and pricing through
advance ordering or other arrangements t
e
• Lease of needed warehouse and administrative facilities at or proximate to the
Project site
• Execute Project Phase III and or PPA agreements
• Release bid for construction (Q1 2010)
• Commence construction (Q2 2010)
Phase 2B are activities anticipated to be completed by end of 2009
6
L.ODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.l
9/26/08 NCPA Commission Approved j
I 098
I
5. Invoicing for LEC Amendment No. 1 Budgeted Amounts
The Project Manager and the NCPA CFO shall recommend an invoicing
schedule to the Project Participants for the additional funding requirements
associated with PPC approved actions to secure the critical power island Project
equipment delivery timing and pricing certainty, and to lease any needed
warehouse and administrative facilities as agreed to by the PPC at or proximate
to the proposed Project site contemplated by this LEC Amendment No. 1. The
PPC shall duly develop, approve and authorize an invoicing schedule to collect
required LEC Amendment No. 1 funds from Project Participants.
6. Remainder of the Agreement
All other terms and conditions of the Agreement remain in full force and
effect.
7. Effective Date of LEC Amendment No. 1
The Effective Date of this LEC Amendment No. 1 shall be the next calendar day
after formal approval by the governing bodies of all Project Members, subject to
the special terms in Section 22 of the Agreement that apply to CDWR.
IN WITNESS WHEREOF, each Project Member has executed this LEC
Amendment No. 1 to the Agreement with the approval of its governing body,
and NCPA has executed this Agreement in accordance with the authorization of
its Commission.
7
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.l
9/26/08 NCPA Commission Approved 099
MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
I
3
I
II
I
NORTHERN CALIFORNIA j
POWER AGENCY Approved as to Legal Form
By: By:
—
Date:
I
I
BAY AREA RAPID TRANSIT Approved aI s to Legal Form
By: By:
Date:
I
1I
1++
1
8
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved -
Y
MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
By: By:
Date:
CITY OF BIGGS Approved as to Legal Form
By: By:
Date:
9
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved
101
' r
I
MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
i
NORTHERN CALIFORNIA !�
POWER AGENCY Approved as to Legal Form
B : B
Y Y:
Date:
1i
CITY OF GRIDLEY Approved as to Legal Form
t
By: By: +
Date:
1
1
f
10
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved �'(!
Y '
MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
By: By:
Date:
CITY OF HEALDSBURG Approved as to Legal Form
By: By:
Date:
11
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved
1.0
MEMBERS OF THE NORTHERN CALIFORNIA ROWER AGENCY:
r
NORTHERN CALIFORNIA
i
POWER AGENCY Approved aS to Legal Form
i
1
By: By: !
Date: {
CITY OF LODI Approved as to Legal Form
3
d
i
By: By: i
Date:
i
i�
1
f�
i
12
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved
I
MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
By: By:
Date:
CITY OF LOMPOC Approved as to Legal Form
By: By:
Date:
13
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/21108 NCPA Commission Approved 1105
�j
105
MEMBERS OF THE NORTHERN CALIFORNIA PjOWER AGENCY:
!
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
By: By:
Date: f
i
PLUMAS-SIERRA RURAL ELECTRIC Approved as to Legal Form
COOPERATIVE
By: By:
Date:
r
I
!
+A
1
i
1
14
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved i 60
Y 0 v
1
MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
By: By:
Date:
PORT OF OAKLAND Approved as to Legal Form
By: By:
Date:
15
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved - yy (('��e�
10 f. '.
t
MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
1
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
1
A
By: By:
Date:
I
d
CITY OF SANTA CLARA Approved as to Legal Form
B : B I
Y Y
q
Date:
1
I
16
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved
Jas
MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
By: By:
Date:
CITY OF UKIAH Approved as to Legal Form
By: By:.
Date:
17
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved
J
NON-MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
j
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
i
By. By.
Date: I
CITY OF AZUSA Approved as to Legal Form
By: By:
Date:
I
I
18
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1 i
9/26/08 NCPA Commission Approved j 110
NON-MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
By: By:
Date:
MODESTO IRRIGATION DISTRICT Approved as to Legal Form
By: By:
Date:
19
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved 4
4
NON-MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
J
I
NORTHERN CALIFORNIA
I
POWER AGENCY Approved as to Legal Form
I
By: By: I
i
Date: G
POWER AND WATER RESOURCES
POOLING AUTHORITY Approved as to Legal Form
By: By:
Date:
1
I
f 20
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1
9/26/08 NCPA Commission Approved ± f 1 2
II .
NON-MEMBERS OF THE NORTHERN CALIFORNIA POWER AGENCY:
NORTHERN CALIFORNIA
POWER AGENCY Approved as to Legal Form
By: By:
Date:
STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES with
respect to its powers and responsibilities for the State Water Resources Development
System
By:
Raphael A. Torres, Deputy Director
Date:
Approved as to form and legal sufficiency
By:
David A. Sandino, Chief Counsel
Date:
21
LODI ENERGY CENTER-PHASE 2 AGREEMENT,Amendment No.1 - -
9/26/08 NCPA Commission Approved
113
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AZUSA
1 IIGNi 6'NAllt
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL f
1 /� J
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES `�i% Gm ����� -/-/h,
DATE: OCTOBER 27, 2008 l
SUBJECT: LEGISLATIVE UPDATE
The State legislative session concluded in September, however, due to ongoing delays in the
budget approval process the Governor did not complete signing of bills until early October.
Following shows the status of certain bills the Utility Board took positions on during this
legislative session.
Bill Subje"escription 1 City status
1 Position
AB 503 Overtime Notice Study/Required Research Bureau to study impacts
of overtime on employers and employees OPPOSE Dead
AB 844 Junk Dealers & Recyclers/Restricted payments to those trying to
recycle non-ferrous metals I SUPPORT Approved
AB 1062 School Solar Design Standards/Requires State to develop uniform
design plans and standards for installation of solar power at schools SUPPORT Approved
. I
AB 1451 Property Tax: Solar Systems Installations/Provides tax credits for
installation of solar systems SUPPORT Approved
AB 1602 Sustainable Communities/Would have provided grant funds for
urban greening programs to improve air and water quality, and
conserve energy I SUPPORT Dead
AB 2640 Solid Waste-Compostable Organics/Would have enacted a disposal
fee for purposes of funding composting facilities SUPPORT Dead
AB 2723 Recycled Water/Would have provided grants to cities for
development of dual piping water systems to make use of recycled SUPPORT Dead
water
AB 2724 Metal Theft/Would have directed revenue from fines into metal theft
prevention programs operated by local agencies I SUPPORT Dead
AB 2829 Solid Waste: Plastic Bags/Would have required printed
environmental message on grocery bags to advise patrons of
negative environmental impact of bags and imposed fee SUPPORT Dead
115
Bill Subject/Description City Status
Position
AB 3030 Water Service Charges/Clarifies procedures to raise rates more
quickly to pay for increased wholesale water purchases SUPPORT Approved
SB 410 Renewable Energy Resources/Would have reduced restrictions on
funding for renewable energy facilities SUPPORT Dead
SB 447 Non-Ferrous Metals/Requires junk dealers to report names of
persons to Chief of Police that sell non-ferrous metals to junk SUPPORT Approved
dealers
SB 980 Report of Electric Distribution Data/Would have required certain
large electric utilities to report operating information to the State
Energy Commission for evaluation OPPOSE Vetoed
SB 1016 Compliance with State Recycling Mandate- AB 939/Changes 50%
waste diversion requirement to a lbs per capita disposal limitation;
continues recycling mandate with more focus on programs SUPPORT Approved
SB 1020 Waste Diversion/Would have changed 50% waste diversion
requirement to 60%by 2012 and 75%by 2020. OPPOSED Dead
SB 1499 Metallic Balloons/Would have made it illegal to sell balloons
constructed of electrically conductive material, and filled with gas
lighter than air SUPPORT Vetoed
SB 1714 Renewable Electric Generation Facilities/Would have required
electric corporations to file standard tariff for renewable energy
output produced by a renewable electric generation facility OPPOSE Vetoed
The above listing does not include all bills that were tracked by our affiliate associations. We
continue to see a large number of bills to mitigate green house gas emissions through energy
efficiency programs, renewables, and programs that promote distributed generation facilities.
Staff will continue to track legislative developments through our member associations and
propose certain positions that are formulated during the course of the legislative session.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
i � V
1
f110061 WIN
RONNIEt._
SA
AZU
414X1 6 WI.1FP
INFORMATION ITEM
7
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2008
I
SUBJECT: 2009 ANNUAL RESOURCE ADEQUACY PLAN
On April 24, 2006, the Utility Board adopted a Resource Adequacy (RA) program for the City
whereby the City will plan to have sufficient resources to meet peak electric consumption plus a
reserve margin.
The RA program guidelines require the electric utility to pre)are an annual RA plan by no later
than September 25`h of each year for the following calendar year and if required submit the RA
plan to the California Independent System Operator(CAISO) by no later than September 30`h of
each year. '
In addition, this year's RA plan also reflects the local capacity purchases to fulfill the additional
requirement CAISO has imposed on all utilities within its footprint. Therefore, the overall
reserve margin is higher than it is in the past two years. I
I
The attached 2009 RA Plan fulfills the City's RA guidelines with no noted exceptions.
The RA Plan has been forwarded to the CAISO for regulatory compliance purposes.
p
Staff will post the 2009 RA Plan on utilities' website for public dissemination.
Prepared by: Bob Tang, Assistant Director of Resource Management
Attachment
xy� 9
D3. RA Plan Rpt.x Is i
e
I
117
a
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Azusa Light and Water
d
Greenhouse Gas Presentation
to
Utility Board
October 27, 2008
i
e
i
ti
I
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w
Overview Of Presentation
■ AB 32 greenhouse gas mandate
■ Impacts to the electric utilities
® What we're planning to do
■ Suggested policy directives to support
z
2
I
i
I�
1
I
d
AB 32 Mandate
■ Enacted into law in 2006
■ It creates a state wide GHG emission limit
equal to 1990 levels by 2020 ,
■ California Air Resources Board (CARB) assisted
by CPUC and CEC will enact regulations for the
electricity sector by 2012 9
■ Electric utilities are expected to reduce carbon
"intensity" by 30% by 2020
I
I 3
6
I
n
1 `
3
Our Power Resource Profile
■ Due to geography - we have little hydro
■ The only source of reliable electricity in
the late 1980s and early 1990s was coal
➢ We have entitlement in San Juan unit 3 coal
generating unit in NM since 1993 and through
the useful life of San Juan
4
4
i
as
i
,
Our Power Resource Profile
Continued
0
I
■ We have a small amount of nuclear
■ We also buy moderate amounts i.e. 10 to 15%
of electricity from other utilities
I�
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� s
i
i
i 5
Our Fuel Mix in 2007,
Y j
x ._ 3,Hydro>
'Natural Gas •Coal Nuclear' � Renewable Total
Pp
30MW
r V.
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E LFA :
' a"' 1F
S'F
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�kxYi i d{k1'?tiY:r b,*ri ' nils' rye °• " tk' R „w,}',J1.y ��' ,� `, '�;.,...
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ry
6
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2005 California Utilities Carbon
Intensity
w
..0:80,
0.70
N�
6.60
0.50
o :4
0.20
OAO
0.00
:PG&E SCE NOCeI Munls SDG&E SOCaI Munis Pasadena 'Azusa
Source:PO C nwm labels.CCM a U m
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1
1
I
I
Ways to Measure Carbon
Footprint
■ Pounds/MWh
Azusa
■ carbon intensity in CY 2000 was about
1,800 Lbs/MWh
■ projected to be 1,300 Lbs/MWh in 2010
■ about 30% reduction in 10 years!
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Ways to Measures Carbon
Footprints
■ Pounds/MWh
➢ State average intensity for electric utilities
■ about 700 Lbs/MWh I
• this is the target we need to strive for by 2020!
➢ Cities (like other SoCal munis) have more coal;
• NorCal has more hydro
■ it is a matter of geography
■ It is not indicative of environmental stewardship!
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Our Carbon and Cost Profile in
2010
Currently
CO2
% Of Output Cost
Portfolio Lbs/MWh $/MWh
Coal 60 - 63% 2,000 50
Natural Gas 0 - 9% 1 ,100 80
Hydro/Nuclear 10 - 13% - 70
Renewables 8 - 201% - 90
Other / Purchases 10 - 15% 1 ,000 80
Overall 100% 1 ,300-1400 63
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Ways to Reduce Our Carbon
Footprint;
■ Energy Efficiency and Conservation
➢ Reduces total carbon produced each year
➢ Doesn't reduce intensity (pounds/MWh)
➢ We have set our goal of implementing all cost-
effective energy efficiency and conservation
measures
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Ways to Reduce Our Carbon
Footprint
■ Renewable Energy Procurement
➢ We have set aggressive RPS goals
■ 20% renewables by 2010 (N20% by
2009)
■ no less than 33% by 2020
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Ways to Reduce Our Carbon
Footprint (Conti,nued )
■ Less Carbon Intensity Resources
➢ Azusa is making investment in Lodi #2
state-of-the-art combined cycle gas
generation with in-service-date of 2013
d
These efforts will cost money and take
time! 9
How much more?
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Expected Future Carbon and Cost
Profile of Azusa
Currently Future
CO, CO,
% Of Output Cost % Of Output Cost
Portfolio Lbs/MWh $1MWh Portfolio Lbs1MWh $/MWh
Coal 500/6 1,985 50 8% 1,985 50
Natural Gas 300% 1,000 80 440/. 1,000 80
Hydro/Nuclear 5% 70 5% - 70
Renewables 5% - 90 330/. - 90 *Other Purchases 100% 1,000 80 10°/, 1,000 80
Overall 100% 1,393 65 100% 699 80
Increase in Cost 24%
Note:
Achieving an emissions rate of 700 lbs/MWh represents a decrease of approximately 60% from
a 1990 level of 1,700 lbs/MWh
*The future costs of all renewable sources are sensitive to increases in the cost of Natural Gas
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How Can These Concepts be Clearly
Communicated to Rate Payers?
Remarkably, the ABC Action/Adi enture series
"Kung Fu" included a little known episode in
which Shaolin master Po instructed the young
Kwai Chang Caine in the problems of Carbon
Dioxide generation and the cost of electricity.
We now join the episode in progress:
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Masterr oes reconstitute g o r po&tfolio with emph sis own mo e
"em fission frntll
iey resourrn
ce- eamthat,as wise stewards of the
environ t wewllmp�iyturn off our a-N--
uctli;III power plant;;. . '
andrallow it to sit.atllyyuntilnt rusts away Into n ingness ver
,� again�to:pro�tiuce�carbon;dioxide�'� �" t
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Pk GOJ WINm MPV/ .n Olgle ml.co /Tema unglu.h n
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Alas, young Grasshopper, the capitalized€value of,the San•Juan
' . ,
Generating Station,is'approximately $3 Billion 'We cannot.
�, affo sunplyurn it offianaw�a'Ikafrom,,t#;_ If wte are;to.
-+vest°our elves of th s resource•we must try to find a!bu.
out portio ofi its:
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+�i`£Ka a�tda�,f "sc...,s�.sL -.t .��,� '`�� --`�`•"`„�.i+e' ���,N�, .9x+5
3 But Master, to whom would,we sell this valuable resou e? ;
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Grasshopper,we must ssearch for a publ c utility who not only
, W ha%s members who can access electricity produced by the San h
Juan Generatiri4 Station but.whichAtoti as excess carbon
f1. h� 9 �
credits, orw�o. as purchased(such credits T
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Vit $r
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K et
dIMA ter,swill our buyer then continue fo protluce Carbon Dioxide'
w.hile�enjoymg the benef itsM1of�less,expensrve power produced'
the 86mJ6an[Generating Stations
�RA � .aFP
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c"` � '�` +S�'�" a- � -d�-Y
MAI
Yes young.Grasshopper, you understandithe situation clearly }
'. :�. � � � � � µ�•� 4� �� v1 �3 $�'r '� k+.�t'H�"`k�'S`u��ri:t�
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Master,,what will wee ao to make up the difference in,power
produuc�ti ccapacity i Will w en bu.UTmore exp ve
prroodducttio�nrfa li ies andiraaise the„cost of our electricity b
-m-nag;
estimated 24% above mflatipn byxthe`year 2020?
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CA
',� Yes young; Grasshopper, that Is what we will do
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-r .fg..=y �,� � Y jF �-4 ��: �'�` k� °� G"& Pe k•:3 i ,Yy `d"E jY*s, �'t'a'
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" "4 Young Grasshopper, it,may not be wise, but its #
may well be the law y ,s
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Challenges
➢ Legislative/Regulatory uncertainties
➢ Fully resourced... > 60% coal (San Juan
divestiture challenges)
➢ Resource Adequacy
➢ No load growth... likely load reduction
➢ GHG reduction technologies 10 -15 years away
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Challenges
➢ Limited present GHG reduction options
EE/DSM, renewable energy and efficiency improvements in generation,
transmission and distribution
➢ Renewable resources
Limited, rising cost, Inadequate connectivity, Intermittency, Integration
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➢ Contracting / Developer Challenges
Long contract negotiations, Credit, Financing, Permitting, Commissioning,
Uncertainty of tax incentives
➢ CAISO —MRTU-nodal market
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The CARB/CPUC/CEC Cap-and -
Trade Model
■ Recent CARB/CPUC/CEC enunciated policy
adopts a "cap and trade" system starting in
2012
■ Under cap and trade, we need to buy emission
allowances (the right to emit carbon)
■ To soften the financial impact initially, we will
be allocated free allowances, but to be phased
out eventually (as early as 2016)
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The CARB/CPUC/CEC Cap-and -
Trade Model
■ Without reasonable transition= and fair
allocation of free allowances, the rate impact to
our customers is up to 40% on too of 24%
rate impact caused by shifts in our portfolio to
less carbon intensive resources
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The CARB/CPUC/CEC Cap-and -
Trade Model
Bottom Line:
Staff firmly believes that a cap-and-trade mechanism
without proper transition and fair allocation of free
allowances is ill-conceived
■ It does not guarantee GHG reduction
■ May cause double regulation
■ Creates market manipulation opportunities to the
detriment of electric system reliability
■ Unfairly burdens entities who are trying to do the
right thing
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Potential Impacts of Carbon
Costs
t
Retail Rate Impacts of RPS and CO2 Regulation
$0.22 - --- _ _ ----- -------
$0.21 - 600,000
$0.20 700,000 Emission Allocation
$019 % - u Method
u - - - 600,000 0
$0118 Emission-Based
- - 500,000 c tAuction
¢" $0.17 - qLoad-Based
$0.1
$0.1
_ o 800,000 0 Rates W/O RPS
6 pp
$0.15 - - - _0 0 1 300,000 0 -W-0O2 Emissions
0 O
$0.14 0 ° 200,000
$0.13 g`0' 100,000
$0.12
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Our Position ( Supported by
Southern California munis) :
■ Fair and equitable GHG reduction burden on
electric sector
➢ provide adjustment for electrification of
transportation and industry sector
• GHG emission allowances based on historic
emissions and same rate of decline for all
utilities.
➢ GHG intense utilities will have to do more than others
but not forced to fund other utilities or sectors.
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Our Position (Continued ) :
■ Cap and trade compliance flexibility is a good
idea
■ Short transition is a bad idea
■ No regulatory bias for past financial decisions
i.e. coal or hydro
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■ Reliability of electricity must not be
compromised
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Suggested Policy Directives
■ All sectors of the economy
need to do their fair and «:
equitable share
➢ transportationr,g� .
natural gas
➢ manufacturing
nSua(*iNcky
a%
13% Y AgMnllwil
impmisflemkM,,- -.:..
■ We support investment in GHG
reduction but oppose wealth Sourc :d1matechan9e.ca.9ov
transfer to other utilities or
sectors.
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Suggested Policy Directives
■ We need to avoid financial schemes that do not
translate into measurable GHG reductions.
California energy crisis is still fresh in our
minds!
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Balanced Energy Policy
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Reliabilit, . 'Affordability
Sustainability
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AZUSA
LIGHT
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WORKSHOP AGENDA
OF THE
AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL
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AZUSA LIGHT & WATER OCTOBER 27, 2008
729 N. AZUSA AVENUE IMMEDIATELY FOLLOWING
AZUSA, CA 91702 UTILITY BOARD/CITY COUNCIL
MEETING
AZUSA UTILITY BOARD
ANGEL A. CARRILLO
CHAIRPERSON
URIEL E. MACIAS JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
KEITH HANKS ROBERT GONZAL KS
BOARD MEMBER BOARD MEMBER
A. AB 32 WORKSHOP
1. Workshop regarding Greenhouse Gas Mandate(AB 32)
GHG_Pres.pdf
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B. ADJOURNMENT
1. Adjournment.
"In compliance with the Americans with Disabilities Act, if you 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 549575, 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, and Azusa Light& Water-729 N. Azusa Avenue,Azusa CA."
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AZUSA
SIGHT t WATER
AGENDA
y
REGULAR MEETING OF
AZUSA UTILITY BOARD,AZUSA CITY COUNCIL
AND THE AZUSA REDEVELOPMENT AGENCY
AZUSA LIGHT & WATER I OCTOBER 27, 2008
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA, CA 91702 f
AZUSA UTILITY BOARD
ANGEL A. CARRILLO
CHAIRPERSON
URIEL E. MACIAS JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
KEITH HANKS ROBERT GONZ ES
BOARD MEMBER BOARD MEMBER
6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board land Azusa City Council
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION
(Person/Group shall be allowed to speak without interruption�up to five (5) minutes maximum time,
subject to compliance with applicable meeting rules. Questions to the speaker or responses to the
speaker's questions or comments shall be handled after the speaker has completed his/her comments.
Public Participation will be limited to sixty (60) minutes time.)
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1. New Employee Introduction
(a) Melissa Onate— Customer Service Representative I (Part Time)
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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
SPECL4L CALL ITEMS. I
1. Minutes. Recommendation: Approve minutes of regular meeting on September 22, 2008 as written.
2. Approval of.Change Order for SSC Construction. Recom I endation: Approve Change Order o. 12
for the addition of $90,761.23 and extension of time to complete by two calendar days to the SSC
Construction Incorporated contract for construction of Project WVF-207, Canyon FiltrationPlant
Membrane. 1
3. Selection of Consultant to Design New South Reservoir. Recommendation: Approve Profe Isional
Services contract with Civiltec Engineering Incorporated to perform engineering design services for
Project WF-221 South Reservoir Demolition and Replacement.
4. Authorization to Engage in Multi-Year National Gas Price Hedges to Reduce Energy Price Risks of
Garnet Wind Proiect. Recommendation: Authorize staff to enter into multi-year agreement natural
gas price hedging transaction in accordance with the processes and within the parameters to reduce
energy price risks of Garnet Wind Project. I
5. Approval of Amendment to Blanket Purchase Order for Olympic Staffing. Recommendation:
Authorize an amendment amount not-to-exceed $25,000 to the blanket purchase order issued to Ol�mpic
Staffing for temporary employee services for fiscal year ending"June 30, 2009.
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6. Approval of Request for Proposal (RFP) for Solid Waste Consultant Services. Recommendation:
Authorize staff to solicit proposals from qualified solid waste'and recycling consultants to analyze City
contract with Athens Services and make recommendations pursuant to the study and assist in negotiations
with Athens. .
7. Approval of Sharps Disposal Program. Recommendation:1, Approve (1) implementation of a sharps
disposal program to assist residents to comply with SB 1305; (2) budget amendment in amount of
$10,000 to cover program expenses. 1
8. Approval of Request for Proposal (RFP) for Development of Public Education Materials to
Promote Water and Energy Conservation Programs and Rebates. Recommendation: Authorize
development and release of RFP to develop and produce public education materials to promote water and
energy conservation.
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9. Approval of Amendment to Wren & Associates Contri ct for Rosedale Pipeline and Water
Infrastructure Installation Inspection Services. Recommendation: Approve the reimbursable
addition of $20,000 to Wren & Associates contract for continuing inspection of Rosedale Pipeline and
Water Infrastructure. I
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10. Adoption of Reimbursement Resolution Related to Lodi Proiect Expenditures from Future Bond
Financings. Recommendation: Approve the following resolution:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF'AZUSA DECLARING ITS INTENTION
TO REIMBURSE CERTAIN EXPEDITURES FROM THEA PROCEEDS OF A PROPOSED ITAX-
EXEMPT FINANCING, AS REQUIRED BY THE UNITED STATES DEPARTMENT OF
TREASURY REGULATIONS SECTION 1.150-2.
C. SCHEDULED ITEMS
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1. Adoption of Program to Protect Customer Identification and Credit Information in Compliance
with Fair Credit Reporting Act and Fair and Accurate Credit Transaction Act of 12003.
Recommendation: Approve the following resolution: i
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA TO
ADOPT AN IDENTITY THEFT PREVENTION PROGRAM FOR AZUSA LIGHT & WATER.
2. Approval of Amendment No. 1 to Lodi #2 Project Phase 2 Planning and Development Agreement.
Recommendation: Approve Amendment No. 1 to Lodi #2 Phase 2 Planning and Development
Agreement at a not-to-exceed budget of$412,000; and authorize the Mayor to execute Amendment No. 1.
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D. STAFF REPORTS/COMMUNICATIONS
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1. Monthly Update on Water Treatment Plan I
2. Legislative Update
3. 2009 Resource Adequacy Plan
E. DIRECTOR'S COMMENTS
F. CLOSED SESSION
1. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Property Address: 150 W. 9th Street, Azusa, CA 91702
Negotiating Parties: King Ranch Market, Aner Iglesias, Business Owner
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Under Negotiation: Price and Terms of payment
2. BLOCK 36
REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Address: 152 E. Foothill Boulevard, Azusa, CA 91702
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Negotiating Parties: Bank of America& City of Azusa Redevelopment Agency
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Under Negotiation: Price and Terms of Payment i
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3. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Address: 100 E. Foothill Boulevard, Azusa, CA 91702
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Negotiating Parties: City of Azusa and City of Azusa Redevelopment Agency
Under Negotiation: Price and Terms of Payment
4. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8)
Address: 614 - 640 N. Azusa Avenue, Azusa, CA 91702
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff
Negotiating Parties: City of Azusa and City of Azusa Redevelopment Agency
Under Negotiation: Price and Terms of Payment 1
5. CONFERENCE WITH LABOR NEGOTIATOR(Gov. Code Sec. 54957.6)
Agency Negotiators: City Manager Delach
Organizations: Executive Management
G. ADJOURNMENT
1. Adjournment.
"In compliance with the Americans with Disabilities Act, if you 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, and Azusa Light& Water-729 N.Azusa Avenue,Azusa CA
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