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Home My WebLink About26829AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD/AZUSA CITY COUNCIL AZUSA LIGHT & WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 I AZUSA UTILITY BOARD URIEL E. MACIAS CHAIRPERSON ROBERT GONZALES VICE CHAIRPERSON KEITH HANKS BOARIO MEMBER i SEPTEMBER 28, 2009 6:30 P.M. JOSEPH R. ROCHA BOARD MEMBER ANGEL CARRILLO BOARD MEMBER 6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council l • Call to Order • Pledge to the Flag • Roll Call A. PUBLIC PARTICIPATION (Person/Group shall be allowed to speak without interruption up to five (S) 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.) � �. 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 SPECLIL CALL ITEMS. Minutes. Recommendation: Approve minutes of regular meeting on July 27, 2009 as written. July 27 Minutes.pdf 2. Approval of Extension of Civiltec Design Contract for Project WF -221. Recommendation: Approve the extension of contract of Civiltec Engineers, Incorporated for Project WF -221, South Reservoir demolition and replacement, from June 30, 2009 to December 31, 2009. w CNhec Contract Extension. pdf Recommendation: Approve additional compensation for Hall & Foreman, Incorporated for Project W- 265, engineering design services for pipeline replacement, in amount of $24,950. U i -- CO to Hag & H&F Exhibit. pdf Forenen. pdf 4. Approval of Additional Compensation for Black & Veatch for Proiect WVF-207. Recommendation: Approve additional compensation to Black & Veatch for additional compensation for construction management engineering services for Project WVF-207, Canyon Membrane Water Treatment Plant (WTP) upgrade and expansion, in amount of $43,700. i CO for Blick & B&V CO Exhibit. pdf Veatch. pdf Opt 1 i ! I II t 3. 4. SCHEDULED ITEMS Approval of Request for Proposals (RFP) for Power Supply Study. Recommendation: Approve statement of work for a power supply study and authorize staff to issue RFP for the study. Power Suppy RFP. pdf Approval of Change Order for SSC Construction, Incorporated for Project WVF-207. Recommendation: Approve Change Order No. 15 for additional compensation and time to SSC Construction, Incorporated for additional work required for Project WVF-207, Canyon Filtration Plant Membrane Treatment upgrade and expansion project, in amount of $82,412.25. STAFF REPORTSICOMMUNICATIONS Consumer Service Customer Identification Theft Prevention Annual Update ID Theft Prev Rpt. pdf San Juan Fuel Cost Adjustment Legislative Govr E.O.pdf SSC CO. pdf SSC C015 Exhibit.pdf STAFF REPORTSICOMMUNICATIONS Consumer Service Customer Identification Theft Prevention Annual Update ID Theft Prev Rpt. pdf San Juan Fuel Cost Adjustment Basin Water Supply and Key Well Elevation Update (Verbal) Legislative Update Legislative Govr E.O.pdf San Juan FCA.pdf San Juan FCA Exhibd. pdf Basin Water Supply and Key Well Elevation Update (Verbal) Legislative Update 003 Legislative Govr E.O.pdf Update.pdf 003 5. Solid Waste Recycling Programs Update E. DIRECTORS' COMMENTS F. 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. " 4 004 t Recycling Prograr s Program Stats Update. pdf Exhibit. pdf E. DIRECTORS' COMMENTS F. 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. " 4 004 CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL. MONDAY, JULY 27, 2009 — 6:30 P.M. The Utility Board/City Council of the City of Azusa met at the above date and time, at the Azusa Light and Water Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Vice Chairman Gonzales called the meeting to order. Call to Order Cary Kalscheuer, Assistant to Utilities Director, led in the Flag Salute. Flag Salute. ROLL CALL Roll Call PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, HANKS, ROCHA ABSENT: BOARD MEMBERS: MACIAS ALSO PRESENT: Also Present City Attorney Ferre, City Manager Delach, Assistant City Manager Makshanoff, Interim Director of Utilities Tang, Assistant to Utilities Director Kalscheuer, Assistant Director Customer Care and Solutions ' Vanca, Director of Public Works/Assistant City Manager Haes, Assistant Director of Water Operations Anderson, Public Information Officer Quiroz, Operations Captain Momot, Sr. Electric Engineer Langit, Storekmper Alvarez, City Clerk Mendoza, Administrative Technician Hernandez. PUBLIC PARTICIPATION Pub Part Mr. Mike Lee commended all who participated in the Korean Armistice Day Celebration and thanked all M. Lee who attended; he spoke about Planning Commission positions, and asked council to reconsider the possible comments review and/or re -appointment of the current commissioners. Mr. Jorge Rosales asked Boardmembers if the loan that the Redevelopment Agency acquired from the City J. Rosales on March of 2008, has been paid. comments f r Ms. Stephanie Mills expressed her opposition to the possible review and/or re -appointment of the current S. Mills Planning Commissioners. comments The CONSENT CALENDAR consisting of Items B-1 through B-3, was approved by motion of Board Consent Cal Member Carrillo, seconded by Board Member Hanks and unanimously carried.* apvd. The minutes of the regular meeting of June 22, 2009, were approved as written. Min appvd 005 2. Approval was given for a License Agreement with Power Settlements Consulting and Software, LLC. Lic Agmnt and the Mayor was authorized to execute said agreement. Power Settlmnt A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF Res. 09-C68 AZUSA, COMMITTING TO MATCH ANY GRANT FUNDS THAT MAY BE AWARDED BY matching THE U.S. DEPARTMENT OF ENERGY FOR A SMART GRID PROJECT IN THE CITY OF funds AZUSA UP TO ONE MILLION DOLLARS. Sched Items Board Member Rocha addressed the item regarding Annual Water Rights Transactions, questioning the Water . dates of the closing of the agreement to be on June 30, 2009. Rights Transactions Interim Utilities Director Tang, explained that water lease is an accounting exercise administered by Water Master and is done before the end of each fiscal year; between June 15 and June 30, is when the water lease is transferred, this agreement is structured between that time. The request for approval is for ratification of the agreement, and to adopt resolution to authorize staff to engage in discussion with outside entities. After light discussion was held, it was moved by Board Member Carrillo, seconded by Board Member Hanks and unanimously carried* to Ratify the execution of the water rights lease agreement with the City of Arcadia. Board Member Carrillo offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ADOPTING A POLICY AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO REPLACEMENT WATER AGREEMENTS AND PRODUCTION RIGHT AGREEMENTS. Moved by Board Member Carrillo, seconded by Board Member Hanks and unanimously carried to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board. AYES: BOARD MEMBERS:, NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: STAFF REPORTS/COMMUNICATIONS GONZALES, CARRILLO, HANKS, ROCHA NONE MACIAS Res. 09-C69 Replacement Water Agreements & Prod Rights Staff Rpts Interim Director of Utilities Tang presented a follow up report from Ms. Susanne Avila, regarding the CRC California Resources Connection (CRC) agreement, for river walk and compost workshops. This report is Report part of the agreement with CRC, and is required to provide to the City, pursuant to the City's funding support for the events. Interim Director of Utilities Tang presented information regarding Power Resources Projects: The Lodi Update Energy Center is an ongoing agreement; however, the Preliminary Staff Assessment it is facing delays in on Power getting approval by the California Energy Commission because of the backlog due to the employee's state Resources mandatory furlough. The Garnet Wind Project is now operating, after six months of testing. Staff is working Projects through Southern California Public Power Authority for ajoint application of ICE Bear technology; a device that builds up ice during the off-peak hours, and releases the cooling during the summer afternoons; the city library is currently using the ICE Bear unit. Interim Director of Utilities Tang presented information on the Filtration Plant, which has been completed; Update staff has been engaged in intensive conditioning of the plant; due to the size of this project, the completion is Water complex, and before they begin operating it, they need to insure everything has been properly checked for Filtration . protections purposes. It is estimated to start operating on August 10. Plant 07/27/09 PAGE TWO Interim Director of Utilities Tang presented an information report answering questions that were posed by Update Report Directors at the last Utility Board Meeting of June 22, regarding Customer Service Division's Lifeline Cust Svcs Program, various billing practices, drop box message, customer count breakdown, and customer usage of online payment features. Interim Director of Utilities Tang presented information regarding Photo Voltaic Solar System Update for Photo Voltaic Cardinal Laboratories; 3 years ago pursuant to State Legislation Azusa established distribution of solar Solar System program for retail customers through Cardinal Laboratories. The expected rebate for Azusa is $336,600. It is estimated to be completed by the end of this month with a ribbon cutting in mid September. Interim Director of Utilities Tang presented information on Climate Change Legislation; H.R.2454 that was H.R. 2454 passed by the Federal House of Representatives; the Southern California municipal utilities including Azusa, Climate has exposure to coal generations which is one of the main sources of green house gas, and even though this Change legislation doesn't protect Azusa 100%, it is better than California AB 32. This new bill will give a Bill reasonable transition period for a targeted reduction of green house gas, that goes to 2025, 2030, a 15 to 20 year life span. Another aspect favorable to Azusa is the "Cap -and -Trade" regulatory on allowances of emissions. To buy allowances under the bill, Azusa should be able to get them at no cost as part of the transition. Interim Director of Utilities Tang presented an update on the San Gabriel Valley Municipal Water District's Promotion Public Education Program to conserve water, which is being promoted by postings on bus shelters. water Conserv Interim Director of Utilities Tang presented an update on Azusa's water supply, which seems to be Water reasonable. Azusa's savings have been from 15% to 20%, compared to couple of years ago, if customers Patrol continue to cooperate in saving water, Azusa should be able to make it through summer and fall. There is update concern on enforcement due to the high heat. Water patrol units have been reinstated during weekends until the end of September. Vice Chairman Gonzales, thanked City staff and Los Angeles County staff, for the Morris Dam tour, which was very educational. City Manager Delach responded to question posed at public participation regarding the loan that Redevelopment Agency acquired from the City, stating that due to delay on property sales, the payment of the nob: has also been delayed, and it is estimated that action on the note will begin September or October. Moved by Board Member Gonzales, seconded by Board Member Carrillo and unanimously carried* to Adjourn adjourn the Utility Board Meeting in memory of Mr. Richard "Dick" Stanford, former Councilmember, who in memory passed away earlier today. of D. Stanford TIME OF ADJOURNMENT: 7:07** P.M. SECRETARY NEXT RESOLUTION NO. 09-C70. *Denotes Chairman Macias absent. ** A special meeting of the City Council and the Redevelopment Agency was held immediately following a 15 minute recess. j 07/27/09 PAGE THREE 007 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: SEPTEMBER 28, 2009 SUBJECT: EXTENSION OF TIME TO CIVILTEC ENGINEERS' CONTRACT FOR DESIGN OF PROJECT WF -221 SOUTH RESERVOIR DEMOLITION AND REPLACEMENT RECOMMENDATION It is recommended that the Utility Board/City Council approve the extension of Civiltec Engineers' contract for engineering design services for the South Reservoir Demolition and Replacement Project WF -221 from June 30, 2009 to December 31, 2009. BACKGROUND At its regular meeting held October 27, 2008, the Utility Board/City Council approved the award of a contract for consultant engineering design services for the South Reservoir Demolition and Replacement Project to Civiltec Engineers. Civiltec's contract terminated on June 30, 2009. Because Civiltec has not yet completed the design of Projeci WF -221, it is necessary to extend the termination date of June 30, 2009 to December 31, 2009. Staff has reviewed the provision of a time extension for Civiltec and finds it to be acceptable. This is presently not a time sensitive project for ALW. FISCAL IMPACT There is no fiscal impact from the extension of time of this contract. Prepared by: Chet Anderson, Assistant Director - Water Operations 11: CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: SEPTEMBER 28, 2009 4 SUBJECT: ADDITIONAL COMPENSATION TO HALL & FOREMAN, INC. FOR EXTRA COST RELATED TO ADDITIONAL WORK FOR PIPELINE REPLACEMENT PROJECT W-265 DESIGN ENGINEERING SERVICES RECOMMENDATION It is recommended that the Utility Board/City Council approve the addition of $24,950 to the Hall & Foreman (H&F) contract to provide Design Engineering Services for Pipeline Replacement Project W-265. BACKGROUND At its regular meeting of March 23, 2009, the Utility Board approved award of a contract for consultant design services for Project W-265, Pipeline Replacement ($99,800). Hall & Foreman's work on the project began in early July, 2009. During their pipeline design work, it became clear that installing a portion of the pipeline as planned in existing rights of way from Brookport Street in West Covina northerly between two houses to the Big Dalton Wash storm drain channel north of the homes, was not practical. As a result, it was necessary to choose a new alignment. The new alignment would connect Brookport Street to Lark Ellen Avenue by running along the Big Dalton Wash storm drain channel from Lark Ellen Avenue to Vincent. This would enable the new pipelines to connect to the existing water system. As a result of the realignment, Hall & Foreman incurred additional expenses ($24,950) as is itemized in an attachment to this Staff Report. Staff has reviewed the proposed change order and finds it to be reasonable. FISCAL IMPACT The fiscal impact of this additional cost is $24,950 (which is a 25% increase in the original: design services contract amount). This request is the first addition to the scope and cost of Hall &. Foreman's contract. This additional cost will be paid from Account 32-80-000-721- 7130/7210733-7130 in FY 2009-2010 capital improvement program budget. Prepared by: Chet Anderson, Assistant Director- Water Operations 010 Mr. Chet Anderson Assistant Director, Water Operations Azusa Light & Water Second Floor Desk 729 N. Azusa Avenue i Azusa, CA 91702 i Subject: Additional Services for Project No. W-265; Lark Ellen, Brookport St., Benwood I St., Benbow St., Vogue Av., Coney Ave., and Roxburgh Av. Dear Mr. Anderson: HFI is requesting additional compensation in the amount of $24,950 for changes to the contract executed on May 18, 2009. The change in the Scope of Services includes the realignment of the new 18" transmission line within the project area and extending the design across the San Dimas channel and the Big Dalton channel on Lark Ellen. The Scope of Services for the additional work is attached as FAibit A. . If you have any questions, please do not hesitate to call me directly at (714) 665-4516. Sincerely, I Hall & Foreman, Inc. Jon E. Bourgeois, P.E. President/Principal T4.1m 1778217" Street. SWR 2DD Tusft CA 9 218 619 47 Tel 714.665.4500 . F 714.665.4SD1 I swn cladw T.m Ia 25157 Spr rOdd CoUrk SWR 350 Three Beft . m Ord4 SuMe 100 Sena C wkk CA 917365465 TMK^ CA 925963745 Tel 661.2B4.7400 . Fax 661.284.7401 Tel 951.294.9300 . 951.7949301 a 14297 Goon Avenue. SWR 101 VldoMlle, CA 92392.2335 Td 760.524.9100 .760.524.9101 Oil 1:014:11030 � SCOPE OF SERVICES Water Main Improvement Project W-265 A. Additional Work Limits: Lark Ellen Avenue: Bellbrook St to Big Dalton Wash Prepare plan and profile design for the installation of 1000 -feet of 18" pipeline in Lark Ellen Avenue. Project design will include the elevated pipeline crossing at the Big Dalton Wash and San Dimas Wash. Fee: $4,000 Cypress Street: Lark Ellen to 650' East Prepare plan view construction sheet for the installation of new 8" water line in frontage road north of Cypress Street east of Lark Ellen. Connection will be made at intersection of Lark Ellen and Cypress. This new pipeline is required to alleviate cross zone connection in Cypress Street and Vogue Avenue. This pipe segment was not in the RFP project description. Fee: $1,750 Vincent Avenue & Big Dalton Wash Prepare plan view and construction details to abandon existing water line from Vincent Avenue east to the 18" waterline within the Big Dalton Wash right-of-way. Fee: $1,500 Bellbrook Street: Coney Ave to Lark Ellen Delete plan only preparation for the installation of 8" water main and prepare plan and profile design for installation of 2200 -feet of 18" water main. (2 sheets) Fee $6,000 B. Surveying & Mapping Complete ground survey topo for Lark Ellen north of Bellbrook St. Topo will include location of street curbs, finish surface elevations, at grade utility facilities and detail topo of access entrances to flood control channel property. Complete additional field survey of Vincent Avenue at Big Dalton Wash. Topo will include location of street curbs and finish surface elevations, and location of at grade utility facilities. Fee: $4,000 012 I C. Permits Submit and process Flood and Roadway encroachment permit through County of Los Angeles Public Works for additional pipeline crossing San Dimas Wash. Permit processing will include construction details, and profile alignment crossing over existing flood control channels at San Dimas Wash and Big Dalton Wash. Payment of all permit fees will be paid for by Agency. Work does not include preparation of easements or licensing agreements. Fee: $3,500 D. Utility Research & Coordination Contact utility Agencies to request Atlas maps of new project limits. Plot utility alignments on plans and show conflicts with new pipelines. Provide notification to utility agencies on plan design and potential relocation requests. Fee: $1,000 f E.. Traffic Control Plans Prepare traffic control and phasing plans for the pipeline construction in Lark Ellen and Cypress. Plans will be prepared in accordance with Caltrans Traffic Control Manual, and MUTCD requirements and processed as part of the LA County Road Permit. Plans will include required signage, traffic control devices, and work area limits. Fee: $3,200 Total Fees Requested for Additional Work under Change Order No.l: $24,950 013 I �I AZUSA UGHT R 'NATER CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE DATE: SEPTEMBER 28, 2009 SUBJECT: ADDITIONAL COMPENSATION TO BLACK & VEATCH FOR EXTRA COST RELATED TO ADDITIONAL WORK FOR THE CANYON MEMBRANE WATER TREATMENT PLANT UPGRADE AND EXPANSION PROJECT CONSTRUCTION MANAGEMENT ENGINEERING SERVICES RECOMMENDATION It is recommended that the Utility Board/City Council approve the addition of $43,700 to the Black & Veatch (B&V) contract to provide Construction Management Engineering Services for Canyon Membrane Water Treatment Plant (WTP) Upgrade and Expansion Project, project W VF -207. At its regular meeting of November 20, 2006, the City Council approved the award of the contract for consultant construction management services for the membrane treatment upgrade and expansion of the Canyon Filtration Plant to Black & Veatch for an estimated cost of $1,147,000. The construction of the plant improvements began January 29, 2007, however, the completion of the project extended beyond the adjusted project completion date of December 17, 2008. During the course of the project, a number of additions and changes to B&V's Scope of Services were necessary for the prosecution of the construction project and amendments to the contract were reviewed/approved by Utility Board on July 28, 2008 ($326,800) and on April 27, 2009 ($102,000) in conjunction with an extension of the expected Completion Date to April 30, 2009. As a result, Black & Veatch's total contract is $1,575,800. TI -Re project achieved Substantial Completion on July 15, 2009 and SSC has been doing startup adjustments and minor finishing work since then. Because the project completion has extended beyond April 30, 2009, B&V incurred additional expenses for project management work. As a result, B&V submitted a contract change request in the amount of $43,700 for those additional costs. 014 Attached is a letter from Black & Veatch documenting its change order request. Staff reviewed this request, including a fee reduction to reimburse ALW for costs it incurred when the restrooms had to be modified to meet California ADA requirements, and finds it to be reasonable. FISCAL IMPACT The fiscal impact of this additional cost is $43,700 which represents an additional 2.8170 to the final cost of Black & Veatch's original construction services contract. Total additions to the Black & Veatch contract to date are $472,500 (41.2% of original cost); final adjusted contract cost is $1,619,500. This additional cost will be paid from Account 32-80-000-721-7130/72107C- 7130. Prepared by: Chet Anderson, Assistant Director- Water Operations 015 a® BLACK & VEATCH t 15615 Alton Parkway, Suite 300 Irvine, California 92618 ( rel: (949) 753-0500 Fax: (949) 753-1252 Azusa Light and Water Canyon Filtration Plant Membrane Treatment Upgrade and Expansion Project Mr. Chet Anderson, P.E. Assistant Director of Utilities — Water Operations Azusa Light and Water I' '729 N. Azusa Ave. Azusa, CA 91702 Dear Mr. Anderson: Black & Veatch Corporation B&V Project 140777 B&V File A.2 September 14, 2009 Subject: Engineering Amendment Request As a follow-up to our discussion on Thursday, September 10, 2009, we are sending this letter requesting an amendment to our engineering services budget for the Canyon Filtration Plant ]Membrane Treatment Upgrade and Expansion project. :Project Status The Canyon Filtration Plant Membrane Treatment Upgrade and Expansion project reached substantial completion on July 15, 2009 and the plant has been in operation for several weeks. A punch list was generated in July 2009 and SSC has addressed most of the items on the punch list. A project status meeting was held on September 10, 2009 between ALW, SSC, and B&V to discuss the outstanding items on the punch list and final closeout documentation. All items on the punch list were discussed and addressed with an action plan. With the exception of three items; potassium permanganate system, paving and alarm setpoint programming issue, all other items were resolved. SSC is working on completing these items in an expedited manner. B&V will work with SSC in the coming weeks to ensure that these items are complete. 16&V Engineering Budget Status and Out of Scope Services The engineering services provided by the Black & Veatch team were performed in response to the SSC's work. B&V received an amendment from ALW in April 2009 to perform the engineering services through end of May 2009, which was the revised substantial completion (late projected by SSC at the time the amendment request was approved. This amendment included a part-time inspection (2 days a week) and project management time through the end of May 2009. We expended our budget at the end of May 2009. Our actual 31 inspection days through end of May exceeded the budgeted 22 inspection days because of the additional startup activities and mechanical performance test. Please note that the additional inspection during Black 8 Veatch Corporation - 15615 Alton Parkway, Suite 300 - Irvine, California 92618 USA - Telephone 949.753.0500 • Fax 949.753.1252 016 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File A.2 Engineering Amendment Request September 14, 2009 May was provided on a full time basis during the 7 day mechanical performance test which was conducted over a span of two weeks to coincide with ALW's plant staff work schedule. Since June to date, our services included the following activities: Perform On -Site Inspection (Total 28 days) Nine additional days in May as explained above Eight inspection days in June Six inspection days in July Three inspection days in August Two inspection days in September These inspection activities were performed to inspect the outstanding items prior to Substantial Completion in July and to inspect the final punch list items post Substantial Completion to date. We don't anticipate requiring any additional inspection days on this project. Project Management Activities (June 2009 to Sep 14, 2009) These activities included the Project Manager and supporting staff's time for coordinating with ALW and SSC with regards to construction and startup activities, and internal project management and accounting activities. The following table provides a breakdown of the project management activities performed during these months. Name Duties Performed Hours Spent June/Se 2009 Ashu Shirolkar, PM . Attend project meeting with ALW (August 24, 45 2009) . Coordination with contractor and Azusa Light and Water . Internal project management and accounting Jake Holden, Project Engineer . Coordination with Contractor and ALW, 60 . Office activities including review of contractor's pay applications Project Accounting Staff . Tracking Budget 10 (Carmen Haynes, Mike Dowell, . Preparing Draft and Final Invoices Sara Beth Heaviland, Hazel Boyd) Project Administration Staff . Project Administration Support 14 (Rashelle Smith, Cynthia . Clerical Support McIntire Project Management Activities (Sep 14, 2009 to October 15, 2009) As we work through the final project close-out documentation and completion of the punch list items, we anticipate following activities will be required through the middle of October, 2009, (expected project close-out date). Project management activities including coordination with SSC and ALW with regards to the project closeout. Review of final pay application will be performed. It is anticipated that additional resident inspection will not be required on this project. Page 2 017 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File A.2 Engineering Amendment Request September 14 2009 As part of this amendment request, ALW asked B&V to review the additional construction costs incurred by ALW for the modifications needed to the O&M Building restroom in order to meet the ADA requirements. B&V proposes a reduction in our amendment request to alleviate these costs incurred by ALW. We have estimated the following hours and fee estimate for our services from June 2009 through middle of October 2009 (projected final completion date). Summary of Addifinnal Wnrk Work Performed Part-time Resident Inspection 224 $31,300 (June -Sep 14, 2009) Project Management Activities 129 $21,500 Resident Inspection 0 $0 New Work (Sep 14—Oct. Project Management (2 hours/week) 10 $1,600 E Subtotal 363 $54,400 Fee Reduction L $10,700 Total Additional Budget Requested 1 $43,700 Page 3 1• Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File A.2 Engineering Amendment Request September 14, 2009 Summary The final closeout for the project is expected to occur in mid-October. SSC is working on addressing the remaining few punch list items and final project close-out documentation will be issued in the upcoming week. B&V hereby requests an amendment to our engineering budget in the amount of $43,700 for the additional work items summarized in this letter. Please contact us if you have questions or require additional information. Cc: Steve Foellmi, B&V Jake Holden, B&V B&V File Very truly yours, BLACK & VEATCH Page 4 Ashu Shirolkar, P.E. Project Manager 019 C 4F AZUSA AGENDAITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: GEORGE MORROW, DIRECTOR OF UTILITIES DATE: SEPTEMBER 28, 2009 SUBJECT: REQUEST FOR PROPOSALS FOR POWER SUPPLY STUDY RECOMMENDATION That the Utility Board/City Council approve the statement of work included in this report for a power supply study and authorize staff to issue a request for proposals for the study. BACKGROUND Azusa Light & Water has not engaged in the development of a formal and comprehensive power supply plan for a numberof years. In the recent past, there have been numerous changes and developments in the electric utility industry which have the potential to impact Azusa's power supply strategies and objectives. The primary developments include the adoption of Assembly Bill 32 which established green house gas (GHG) goals/restrictions for California and the implementation of an Executive Order signed by the Governor of California on September 15, 2009 increasing renewable portfolio standards (RPS) from 20% to 33% in 2020. Similar GHG and RPS legislation is pending at the Federal level. In addition, the retirement of Azusa's long-time Director of Utilities (Joe Hsu) and the resignation of the organization's chief power supply planner (Bob Tang), as well as the appointment of a new Director of Utilities on August 31, suggest that this may be an excellent time to step back and review/assess the present power supply commitments of the electric utility and to begin to formulate goals and strategies for the acquisition of new power resources in the fulure. 020 Approval to Issue Request for Proposals for Power Supply Study September 28, 2009 Page 2 Key items for statement of work for the Power Supply Study include the following: • Review/document the utility's load forecast and recommend changes, if appropriate, based on current conditions in the industry and the economy, • Review/document the utility's current power supply commitments to include the form and nature of such commitments, expected capacity and energy contributions and present and future cost profiles projections, • Review/document the utility's current electric transmission arrangements to include the form and nature of such commitments and present/future cost projections, • Evaluate the utility's proposed participation and participation level in the planned Lodi Energy Center with respect to costs & benefits, • Review/document the utility's current program/approach to purchase wholesale electric capacity and energy to satisfy projected load obligations and as a hedge to future power costs, • Review/document the utility's current program/approach to acquire Congestion Revenue Rights (CRR's) as a hedge against locational marginal prices (LMP's) within the California Independent System Operation (CAISO) network, • Review/document the utility's obligations to maintain Resource Adequacy (RA) and Local Capacity Resources (LCR) pursuant to CAISO rules/guidelines, • Review the utility's current power resources that qualify in meeting Renewable Energy goals and provide input/recommendations regarding the future acquisition of RPS qualified resources by Azusa, • Review/document the utility's current Green House Gas "footprint" as well as documenting the probable level or range of carbon reductions that will be required by the utility to conform with the requirements of AB 32, • Assess the utility's potential for demand-side management (DSM) and appropriately integrate reasonably levels of same into the planning study • Provide spreadsheet models prepared for the purposes of this study including load forecast, power supply costs, RA and LCR capacity, RPS and GHG, and • Develop a strategic vision/direction for power supply resources that can provide the utility with a roadmap for considering/evaluating future power supply options. This project could take 4 to 6 months to complete. The most time sensitive portion of the study relates to the Lodi Energy Center (LEC). We would request an early review and report prior to December 31, 2009 on this project which should be consistent with the commitment deadline for LEC. FISCAL IMPACT The cost of this study will be reported to the Utility Board following receipt of proposals from qualified consulting firms. Prepared by: George Morrow, Director of Utilities 021 � P AZLJSA UGMf R WATIt AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY ! BOARD AND AZUSA CITY COUNCIL I FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: FEBRUARY 28, 2009 j SUBJECT: APPROVAL OF CHANGE ORDER PROVIDING ADDITIONAL f COMPENSATION AND TIME TO SSC CONSTRUCTION, INC. FOR AGGREGATED ADDITIONAL WORK REQUIRED ON PROJECT WVF-207 CANYON FILTRATION PLANT MEMBRANE TREATMENT UPGRADE AND EXPANSION RECOMMENDATION It is recommended that the Utility Board/City Council approve Change Order No. 15 for the addition of $82,412.25 and 108 days to the SSC Construction, Inc. contract for Project WVF- 207, Canyon Filtration Plant Membrane Treatment Upgrade and Expansion. BACKGROUND On November 20, 2006, the Azusa City Council accepted the bid of SSC Construction, Inc. to construct Project WVF-207, Canyon Filtration Plant Membrane Treatment Upgrade and Expansion. Change Order No. 15 represents an aggregation of SSC Change Order Requests (COR) 13, 27, 35, 36, 37, 38, 39, 40, 41, and 42. Also included in this Change Order is a cost reduction offered by SSC to settle the matter of time over the completion date and possible liquidated damages. An overview of Change Order Requests 13, 27, 35, 36, 37, 38, 39, 40, 41, and 42 is provided below. A detailed justification/ explanation of each COR is provided by reference to an attached Black & Veatch letter and Change Order Form. CHANGE ORDER REQUESTS COR 13: O&M Building Permit Contract Time Extension and Additional Architectural Costs Extra time spent awaiting a Building Permit plus minor architectural additions or revisions resulted in extra costs. SSC has requested an additional $5,186.61 and a 91 calendar day extension. 022 Change Order No. 15 to SSC Contract (Project WVF-207) September 28, 2009 Page 2 COR 27: Special Inspection Charges SSC incurred costs for Special Inspection for rebar, masonry, and structural steel that were not SSC's responsibility to provide at their own cost. SSC has requested reimbursement of $77,116.80. COR 35: Membrane Building Blower Air The blower air piping for the membrane system was installed by SSC using steel pipe per the specification. The City's supplier of the membrane system, Siemens, requested that the piping be changed to stainless steel pipe. SSC is requesting reimbursement of $38,960.42, the difference in cost between stainless steel piping and standard steel pipe. COR 36: Membrane Building Compressed Air The. compressed air piping for the membrane system was installed by SSC using carbon steel pipe per the specification. The City's supplier of the membrane system, Siemens, requested that the piping be changed to copper pipe. Siemens also requested the installation of air filters in several locations. SSC is requesting reimbursement of $45,658.78, the difference in cost between stainless steel piping and copper pipe, and a time extension of 10 calendar days. COR 37: O&M Building City Inspection Corrections City building inspector identified items to be corrected during final inspection. Among the items were ADA compliant toilets and signage, and GFI outlet in certain areas. SSC is requesting an additional $11,394.37 for the modifications and a 7 calendar day time extension. COR 38: Membrane Building Spandrel Beam Pre-engineered spandrel beams were installed at an elevation that put them in conflict with openings in the masonry walls for the HVAC ducts and louvers. The duct work had to be modified to wrap around the spandrel beams. SSC has requested $9,294.22 for the modifications to the ductwork and installation of the modified ductwork. COR 39: Road widening per LACFD Plan Review Comments LA County Fire Department reviewed the plant road plans and required the plant access road to be widened from 20 feet to 26 feet in several locations, and also required two fire department connections to be relocated. SSC has requested $27,222.97 for making the modifications required by LA County Fire Department. COR 40: New Circuits for Sample Pumps Because the sample pump supplier could not guarantee a weather proof casing for the specified pumps, an alternative pump was recommended. The alternative pumps also required dedicated electric supply and breakers. SSC has requested $2,088.82 for these modifications. CREDITS 1. Credit for deletion of tracer study (COR 41). Staff operators determined the plant needs to be fine tuned over the next few months before the tracer study is run. Because the tracer study would not be run as a part of their contract, SSC is issuing a credit of $25,000 to ALW. 023 Change Order No. 15 to SSC Contract (Project WVF-207) September 28, 2009 Page 3 2. Credit for deletion of sound survey allowance (COR 42). An allowance was provided for SSC to install sound walls if a sound survey demonstrated that sound walls were unnecessary. Because the sound walls were determined to be unnecessary, SSC is issuing a credit a credit of $73,375.00 to ALW. 3. SSC Change Order Cost Reduction Negotiations between ALW and SSC took place in which SSC offered a compromise of a credit to the contract of $36,135.74 to resolve the issue of liquidated damages for delays. The net total additional compensation requested by SSC is $82,412.25. The total additional time requested is 108 Calendar Days. Staff has viewed each of SSC's change order requests and finds them to be reasonable. I f Including this Change Order, the final contract price for this project is $36,598,114.39 with $692,614.39 in Change Orders. Change Orders for this contract represent 1.93% of the original t contract price of $35,905,500. i FISCAL IMPACT I This request has a fiscal impact of $82,412.25 to be funded from the capital improvement j program budget account 32-80-721-000-7130/72107C-7130. Prepared by: Cliet Anderson, Assistant Director- Water Operations 1 024 BLACK & VEATCH building a virorl d Gf diflerence- ENERGY WATER INFORMATION GOVERNMENT City of Azusa Canyon Filtration Plant Membrane Treatment Upgrade and Expansion Mr. Chet Anderson, P.E. Assistant Director of Utilities- Water Operations Azusa Light & Water 729 N. Azusa Avenue, 2nd Floor Azusa, CA 91702 Dear Mr. Anderson: B&V Project 140777 B&V File 1.6 September 16, 2009 Subject: Change Order No. 15 Black & Veatch (B&V) is furnishing this letter as summary for the final change order for the project, Change Order No. 15, which includes open SSC Change Order Requests (COAs), SSC's COR cost reduction, and pending credits to ALW. A description of these items is provided and SSC's document with regards to this final change order is attached. 1) Open SSC Change Order Requests: COR 13: O&M Building Permit Contract Time Extension and Additional Architectural Costs Obtaining a building permit was required for the O&M Building. SSC could not proceed with the O&M Building construction until a permit was provided by the City of Azusa Building Plan Check Department and approval was provided by the Los Angeles County Fire Department (LACFD) Building Plan Check Unit. SSC has requested a 91 calendar day extension to the contract for delays associated with receiving the 0&M Building Permit. In addition, minor architectural additions/revisions resulted in $5,186.61 of additional costs. B&V has reviewed Change Order Request (COR) 13 and recommends acceptance. COR 27: Special Inspection Charges SSC has requested reimbursement for costs incurred for Special Inspection services for rebar, masonry, and structural steel performed by Converse Consulting during construction. Per Specification 00700, Paragraph 13.03, the OWNER is responsible for costs associated with these inspection services. The total reimbursement requested is $77,1 16,80. B&V has reviewed COR 27 and recommends acceptance. COR 35: Membrane Building Blower Air The blower air piping for the membrane system was installed as steel pipe per Specification 01630, pipe schedule. Per Siemens' recommendation, in order to prevent damage to the membranes, this pipe had to be changed to stainless steel piping. SSC is requesting reimbursement of $38,960.42 for the difference in material costs between steel pipe and stainless steel pipe. B&V has reviewed COR 35 and recommends acceptance. Blade & Veatch corporation • 15615 Alton Parkway, Suite 3DO •Twine, California 92618 USA - Telephone 949.753.D500 - Fax 949.753.1252 025 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File 1.6 Change Order No. 15 COR 36: Membrane Building Compressed Air The compressed air piping for the membrane system was installed as carbon steel piping per specifications. Upon commencement of system checkout, Siemens required all compressed air piping for the membrane system to be copper due to concerns with flaking of steel pipe entering the air process and subsequently damaging the membranes. In addition, installation of air filters in several locations was required to satisfy Siemens requirements. The total cost for these modifications was $45,658.78. SSC has requested a 10 day extension to the contract. duration for completion of this work. B&V has reviewed Change Order No. 36 and recommends acceptance. _ COR 37: O&M Building City Inspection Corrections The city building inspector identified items to be corrected during the final inspection. These items included modifications to the men's and women's room toilets, converting the maintenance garage receptacles to GFI outlets, adding ADA signage, and adding covers for the maintenance shop lights. The total cost for these modifications was $11,394.37. SSC has requested a 7 day extension to the contract duration for completion of this work. B&V has reviewed COR 37 and recommends acceptance. COR 38: Membrane Building Spandrel Beam The pre-engineered spandrel beams in the Membrane Building were installed at an elevation such that they interfered with the openings in the masonry walls for the HVAC ducts and louvers. Prior to installation, the duct work was modified such that it split and wrapped around the spandrel beams. The total cost for these modifications and the modified installation was $9,294.22. B&V has reviewed COR 38 and recommends acceptance. COR 39: Road Widening per LACFD Plan Review Comments The Los Angeles County Fire Department reviewed the plans and required the plant access road to be widened from 20 feet to 26 feet in several locations. In addition, they required relocation of two fire department connections and associated piping. The total cost for these modifications was $27,222.97. B&V has reviewed COR 39 and recommends acceptance. COR 40: New Circuits for Sample Pumps During the sample pump submittal process, it was determined that the pump supplier could not guarantee a weather proof motor casing for the pumps specified. B&V recommended an alternative sample pump from a different manufacturer that was guaranteed to be weather proof. The new sample pumps had larger horsepower requirements than the original pumps. The additional horsepower required dedicated cable and a breaker for each pump that previously shared power with the water quality stations. The total cost for these modifications was $2,088.82. B&V has reviewed COR 40 and recommends acceptance. )BU Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File 1.6 Change Order No. 15 Summary of Open SSC Change Order Requests Open.C.QR COR 13 1 lding Permit Contract Time Extension and Architectural Costs $5,186.61 COR 27 ection Chares $77,116.80 COR 35 tAdditional Buildin Blower Air $38,960.42 COR 36 to the Membrane Building Compressed Air ired b Siemens $45,658.78 COR 37 din City Inspection Corrections $11,394.37 COR 38 Membrane Building Spandrel Beam $9,294.22 COR 39 Los Angeles County Fire Department Plan Review Corrections $27,222.97 COR 40 New Circuits for Sample Pumps $2,088.82 TOTAL $216,922.99 2) Tracer Study Credit: SSC is proposing to provide a credit of $25,000 to ALW for the tracer study purchase order they've contracted with a third party company. Per DPH guidelines, the tracer study must be performed within a year of permit issuance at the required flow rate of 12 MGD. ALW has noted they would like to fine-tune plant operations at the required flow rate prior to conducting the tracer study. 3) Sound Survey Allowance Credit: An allowance of $75,000 was issued in the bid documents for the contractor to conduct a sound survey for the plant and implement any mitigation measures. The results of the sound survey indicated sound reduction mitigation measures were not required. Of the $75,000 designated, SSC spent $1625.00 to perform the sound survey, resulting in a credit to ALW of $73,375.00. 4) SSC Chance Order Cost Reduction: As part of the negotiation process, SSC has agreed to deduct contractor markups and labor costs from their CORS under Item I above. The total reduction offered is $36,135.74. After the meeting on September 10 and follow-up conversations, SSC and ALW have both agreed to forego pursuing costs associated with approved time extensions and delay to the construction schedule. As a result the contractual final completion date agreed upon is September 28, 2009. With the acceptance of this offer by ALW, SSC will also sign a document waiving any and all rights to making an extended overhead claim. 027 i Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File 1.6 Chance Order No. 15 Summary' As shown below, the final change order request amount offered by SSC to close out the project is $82,412.25. B&V recommends approval of this addition to the contract price. Open CORS $216,922.99 Tracer Study Credit -$25,000 Sound Survey Allowance Credit -$73,375.00 SSC COR Cost Reduction -$36,135.74 Final COR Amount Offered by SSC to Close Out Project $82,412.25 Please feel free to contact us should you have any questions or require additional information. 0 Very truly yours, BLACK & VEATCH I•- yG' Ashu Shirolkar, P.E. Project Manager M-1 AZUSA LIGHT AND WATER CHANGE ORDER Order No. 15 Date September 16, 2009 Agreement Date January 17, 2007 Sheet I of 4 Owner: Azusa Light and Water Project: Canyon Filtration Plant Uparade and Expansion Contractor: SSC Construction Inc. The following changes are hereby made to the Contract Documents: ADD DEDUCT I. O&M Building Permit Contract Time Extension and Additional $5,186.61 Architectural Costs (Reference SSC Change Order Request 13) 2. Special Inspection Charges $77,116.80 (Reference SSC Change Order Request 27) 3. Membrane Building Blower Air $38,960.42 (Reference SSC Change Order Request 35) 4. Revisions to the Membrane Building Compressed Air Lines $45,658.78 Required by Siemens (Reference SSC Change Order Request 36) 5. O&M Building City Inspection Corrections $11,394.37 (Reference SSC Change Order Request 37) 6. Membrane Building Spandrel Beam $9;294.22 (Reference SSC Change Order Request 38) 7. Los Angeles County Fire Department Plan Review Corrections $27,222.97 (Reference SSC Change Order Request 39) 8. New Circuits for Sample Pumps $2,088.82 (Reference SSC Change Order Request 40) 9. Tracer Study (Credit) 425,000.00 (Reference SSC Change Order Request 41) 10. Sound Survey (Credit) -$73,375.00 (Reference SSC Change Order Request 42) 11. SSC Change Order Request Cost Reduction -$36,135.74 NET COR AMOUNT (ADD) $82,412.25 029 Justification 1. (Reference SSC Change Order Request 13) Obtaining a building permit was required for the j O&M Building. SSC could not proceed with the O&M Building constriction until a permit was provided by the City of Azusa Building Plan Check Department and approval was provided by the Los Angeles County Fire Department (LACFD) Building Plan Check Unit. 2. (Reference SSC Change Order Request 27) SSC has requested reimbursement for costs incurred for Special Inspection services for rebar, masonry, and structural steel performed by Converse Consulting during construction. Per Specification 00700, Paragraph 13.03, the OWNER is responsible for costs associated with these inspection services. _ 3. (Reference SSC Change Order Request 35) The blower air piping for the membrane system f was installed as steel pipe per Specification 01630, pipe schedule. Per Siemens' j recommendation, in order to prevent damage to the membranes, this pipe had to be changed If to stainless steel piping. SSC is requesting reimbursement for the difference in material costs between steel pipe and stainless steel pipe. 4. (Reference SSC Change Order Request 36) SSC installed carbon steel piping for the compressed air lines in the Membrane Building as required per specifications. Upon commencement of system checkout, Siemens required all compressed air piping for the membrane system to be copper and required air filters in several locations. 5. (Reference SSC Change Order Request 37) The city building inspector identified items to be corrected during the final inspection. These items included modifications to the restroom toilets, converting maintenance garage receptacles to GFI outlets, adding ADA signage, and adding covers for the maintenance shop lights. 6. (Reference SSC Change Order Request 38) The pre-engineered spandrel beams in the Membrane Building were installed at an elevation such that they interfered with the openings in the masonry walls for the HVAC ducts and louvers. Prior to installation, the duct work was modified such that it split and wrapped around the spandrel beams. SSC is requesting reimbursement for these modifications. 7. (Reference SSC Change Order Request 39) The Los Angeles County Fire Department reviewed the plans and required the plant access road to be widened from 20 feet to 26 feet in several locations. In addition, they required relocation of two fire department connections and associatdd piping. 8. (Reference SSC Change Order Request 40) During the sample pump submittal process, it was determined that the pump supplier could not guarantee a weather proof motor casing for the pumps specified. New sample pumps were recommended that had larger horsepower ' requirements than the original pumps. The additional horsepower required dedicated cable and a breaker for each pump that previously shared power with the water quality stations. 9. (Tracer Study Credit) SSC has obtained a purchase order for a third party tracer study company. During a project meeting on 09/10/09 it was determined that SSC would credit the 030 purchase order amount to ALW and ALW would procure the services of the third party in the future. 10. (Reference SSC Change Order Request 42 - CREDIT) SSC contracted a third party company to conduct a sound survey as required in.the contract documents. The results of the sound survey indicated mitigation measures would not be required of SSC. A credit of was provided to ALW from SSC based on the amount allowed for in the specifications less the costs of the sound survey. 11. (SSC Change Order Cost Reduction) As part of the negotiation process, SSC has agreed to deduct contractor markups and labor costs from their CORS under Item 1 above. After the meeting on September 10 and follow-up conversations, SSC and ALW have both agreed to forego pursuing costs associated with approved time extensions and delay to the construction schedule. As a result the contractual final completion date agreed upon is September 28, 2009. With the acceptance of this offer by ALW, SSC will also sign a document waiving any and all rights to making an extended overhead claim. 031 i e j 3 SUMMARY Change Orders CHANGE TO CONTRACT PRICE Original Contract Price Current Contract Price Adjusted By Previous Change Order(s) Contract Price due to this Change Order will be (increased) New Contract Price, Including this Change Order CHANGE TO CONTRACT TIME: Contract Time Will Be Increased by Date of Completion of All Work APPROVED: Owner: Azusa Light & Water By: Chet Anderson Engineer: Black & Veatch By; - - - --- Ashu Shirolkar, Project Manager $82,412.25 Add (Net) $ 35,905,500.00 $ 36.515.702.15 $ 82.412.25 $ 36.598.114.40 (Calendar Days) September 28; 2010 ri X -4 INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE DATE: SEPTEMBER 24, 2009 SUBJECT: ANNUAL UPDATE ON 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 The Fair Credit and Reporting Act (FORA) required creditors to develop and implement an Identity Theft Prevention Program by November 2008, with this date later extended to November 1, 2009. 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 Fair and Accurate Credit Transactions (FACT) Act required that creditors 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. In October 2008, the Utility Board approved Light & Water's Identity Theft Prevention Program to protect customer identification and credit information. 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." Employees with direct access to customer information are to receive initial training and annual training updates. Periodic reviews, conducted at least annually, are intended to 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 provides oversight over the policies and procedures, and Azusa Light & Water reports annually to the Utility Board on the program effectiveness. Over this past year the following occurred and/or deficiencies were noted and corrected: 1. Customer Service employees with access to customer information received an initial two-hour training session with workbook and tips. Annual update training was provided in August 2009. 033 2. Access to the Information Technology server room located on the first floor of the Light & Water building was secured and a separate door built for entry by the general staff to the adjacent training and mail room. 3. For information privacy, Information Technology put passwords on Customer Service computers and set screens to go dark after 10 minutes of inactivity. Users must enter their passwords to regain access. 4. Systems & Software created and deployed a new method of source code control on our customer information system server. The goal was to ensure that no programmer could alter the production source code directly on any customer's server. Any source code updates now need to be deployed via an automated system to ensure not only code consistency, but to also ensure there is an audit trail should issues arise at a later date. 5. Customer Service vendors with access to customer identity information were requested to confirm that they have taken all reasonable and necessary steps to safeguard name and social security number and/or name and date of birth. All confirmed they are in compliance. 6. Lobby doors opening to the back office were secured with key entrances. 7. Locks were installed on selected cabinets so all staff can lock away papers and notebooks with customer information. 8. Cross -shredders were purchased so sensitive customer information can be shredded immediately. All other unneeded paper is shredded weekly. The FY 2009-10 budget includes amounts for shredder replacements. Estimated costs are not to exceed $3,000. Prepared by: Karen Vanca, Assistant Director Customer Care & Solutions 034 AZUSA INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: GEORGE MORROW, DIRECTOR OF UTILITIES DATE: SEPTEMBER 28, 2009 ' SUBJECT: QUARTERLY FUEL COST ADJUSTMENT FOR SAN JUAN RESOURCE On July 26, 2004, the Utility Board approved a fuel cost adjustment mechanism for San Juan power plant. This mechanism is intended to credit customers with cost savings that are realized when our power plant operates reliably and replacement power costs are avoided, and conversely, allow the Utility to increase revenues to recover a portion of our replacement power costs when the San Juan resource experiences outages. This report encompasses replacement power costs incurred for the San Juan resource during the period of June 16, 2009 through September 13, 2009. For reasons stated below, staff recommends that NO Fuel Cost Adjustment be assessed on customer electric billings for the period of October 1, 2009 through December 31, 2009. The availability of the San Juan unit #3 during the period of June 16, 2009 through September 13, 2009 was 96%, higher than the budgeted availability of 85%. The average cost of replacement power was $31.41/MWh as compared to the budgeted cost of $40/MWh, resulting in a net credit of $307,673 for Fuel Cost Adjustment for the quarter, and when combined with the carry over from the previous quarter of $32,016 it resulted in a total FCA credit of $275,657. Normally, when FCA credits exceed $150,000 the amount would be credited back to customers on their electric bills in the immediately following quarter. However, given the anticipated San Juan replacement power costs in the second quarter of 2010 due to a planned San Juan unit 3 maintenance outage staff recommends the FCA credits be carried over to offset the foreseeable la-rge San Juan FCA charges next year. Prepared by: George Morrow, Director of Utilities Attachment i sm 53 FCA Q4_09.xts i 035 San Juan Fuel Cost Adjustment Calculation for Q4 2009 Actual SJ Output Actual SJ Replac Energy Cost Maximum Output Unavailable SJ Output % Outage Rate Base SJ Output @ 85% Unavailable SJ Output % Outage Rate Base SJ Replac Energy Cost @$40/MWh Actual - Base SJ Replac Energy Cost San Juan Insurance Premium Recovery San Juan Insurance Payout Cumulative Quarterly Difference (CQD) Q3 2009 Carry -Over If I(CQD)I<$100,000, then adjustment=0 If I(CQD)I>$750,000, then adjustment=+ -$750,000 or else adjustment = CQD Forecast Retail Sales (MWh) SJ FCA for Q4 2009 (cents/KWh) (*) Through September 13th, 2009 June 16 -July August September* 32,009 20,894 9,3.14 $34,205 $45,669 $1,253 33,120 22,320 9;360 1,111 1,426 46 3.35% 6.39% 0.49% 28,152 18,972 7,956 4,968 3,348 1,404 15.00% 15.00% 15.00% $198,720 $133,920 $56,160 -$164;515 -$88,251 -$54,907 $0 $0 $0 $0 $0 $0 -$307,673 $32,016 -$275,657 October November December 22,383 19,978 20,211 -0_44 $31.41 3.99% INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: GEORGE MORROW, DIRECTOR OF UTILITIES DATE: SEPTEMBER 28, 2009 SUBJECT: LEGISLATIVE UPDATE During the 2009 calendar year, the Utility Board adopted various positions on state legislation and advocated these positions in letters to state representatives. The deadline for the State Legislature to approve bills this year was September 11, 2009. Bills that were not approved became 2 -year bills and may be taken up next calendar year. Bills approved by the Legislature were "Enrolled" for the Governor's signature. The Governor has until October l la' to sign bills or veto them. Following shows status of bills Azusa Light & Water took positions on this calendar year: Bill No. Subject Status/Committee Position AB 49 Water Conservation — 20010 per capita 2 Yr Bill/Senate Support reduction Appropriations AB 64 Renewable Energy Requirement — 2091b Enrolled Oppose by 2013; 26% by 2016 and 33% by 2020 (Implements SB 14) AB 87 Prohibit Distribution of Free Plastic 2 Yr Bill/Assembly Support if Grocery Bags/Impose Fee Appropriations Amended AB 222 Defined Biorefineries as Renewable 2 Yr Bill/Senate Support Energy Facilities Environmental Quality AB 479 Increase Waste Diversion Requirement 2 yr Bill/Senate Oppose on Cities to 60010 by 2015 and 75% by Appropriations 2020 AB 1404 Cap of Greenhouse Gas Emission Offsets Enrolled Oppose and Authorization for ARB to adopt Administrative Fees SB 14 Renewable Energy Requirement — 20% Enrolled Oppose by 2013; 26% by 2016 and 33% by 2020 SB 25 Increase Waste Diversion Requirement 2 Yr Bill/Assembly Oppose on Cities to 60% by 2015 and 75% by Natural Resource 2020; Mandatory Commercial Recycling and Imposition of additional Landfill Fees SB 488 Mandatory Reporting for Utilities that Enrolled Oppose have Comparative Energy Usage Disclosure Programs SB 805 Renewable Energy Requirement — 20% 2 Yr Bill/Senate Support by 2013 and 33% by 2020 Appropriations 037 SB 14 and AB 64. Of the four noted bills currently enrolled, two would increase the renewable portfolio standard (RPS) to 33% by 2020. While Azusa adopted a support position to increase its RPS to 33% by 2020, SB 14 and AB 64 would limit the amount of renewable energy that could be delivered from out of state resources. This aspect of both bills raised concern amongst municipal electric utilities throughout California and caused our affiliate associations, such as California Municipal Utilities Association (CMUA) and Southern California Public Power. Authority (SCPPA), to oppose these bills. Historically, it has been difficult to construct power generation in the State of California and so some power generation facilities were built out-of-state and transmission infrastructure was developed to import the energy. The transmission infrastructure is considered a valuable asset and can be used to deliver renewable energy to the California market place. It is believed that having access to out-of-state renewable energy can help lower cost in two ways, by providing' competition and by making use of existing transmission infrastructure. The Governor appears to share this perspective and is expected to veto SB 14 and AB 64. In order to implement the 33% RPS requirement, the Governor signed Executive Order S-21-09 on September 15, 2009 (attached). The order directs the Air Resources Board (ARB) to develop an RPS requirement of 33% by July 31, 2010, in cooperation with Public Utilities Commission. and California Energy Commission. The last directive in the Executive Order reads: "The ARB shall establish the highest priority for those resources that provide the greatest environmental benefits with the least environmental costs and impacts on public health that can be developed most quickly and that support reliable, efficient, cost-effective electricity system operations including resources and facilities located throughout the Western Interconnection." SB 488. After the City of Azusa sent its letter to Senator Pavley s office regarding SB 488, Azusa was contacted by the Senator's office and certain objectionable language was removed' from this bill. This effectively exempted Azusa from having to implement a program whereby Azusa Light & Water would provide comparative electricity usage information to customers through its utility bills. SB 488 was revised to now only require that utilities with comparative' energy disclosure programs report the results of such programs to the State. AB 1404. Existing law requires the ARB to adopt market based approaches to reduce; greenhouse gas emissions. AB 1404 would impose a limit on the amount of emission reductions that can be achieved using market based approaches to no more than 10% of greenhouse gas emissions to be reduced during a reporting period. AB 1404 also authorizes ARB to adopt administrative fees to pay for administration of this "offset" program. CMUA and SCPPA are. requesting the Governor to veto AB 1404 to maximize the options available to achieve emission reductions. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Office of the Govemor of the State of California i i F� Office of the Governor THE PEOPLE'S GOVERNOR ARNOLD SCHWRRZENEGGER %y YYa:UIn 09/15/2009 WHEREAS the State of California is a world leader in efforts to reduce global warming and greenhouse gas emissions, increase renewable energy production, promote energy efficiency and energy conservation, improve clean air and emissions controls, expand the use of low carbon and alternative fuels and promote and commercialize new environmental technologies and industries; and, - WHEREAS producing electricity from renewable resources provides multiple and significant benefits to California's environment and economy, including improving local air quality and public health, reducing global warming, diversifying our energy supply, improving energy security, enhancing economic development and creating jobs; and I WHEREAS California has and can access some of the best renewable energy resource areas in the world, providing immense; potential for clean, valuable electricity generation, and the development of these resources must be accelerated and maximized; and I. WHEREAS the Legislature enacted the California Global Warming Solutions Act of 2006 (Chapter 488, Statutes of 2006, thereinafter "AB 32"), wherein the Legislature declared that global warming poses a serious threat to the environment of California and created a comprehensive, multi-year program to reduce greenhouse gas emissions that cause global warming; and WHEREAS AB 32 designated the Air Resources Board ("ARB") as the state agency charged with monitoring and regulating sources of greenhouse gas emissions in California; and WHEREAS among other requirements, AB 32 directs ARB to design emissions reduction measures, adopt regulations requiring; the reporting and verification of greenhouse gas emissions, including accounting for greenhouse gas emissions from all [electricity consumed in the state, and develop emissions reduction measures, including limits on emissions of greenhouse gases applied to electricity and natural gas providers serving customers in California; and WHEREAS substantially increased development of renewable energy, energy efficiency, and demand response are all !heeded to meet the greenhouse reduction goal of 1990 levels by 2020 and 80 percent below 1990 levels by 2050, making the success and expansion of renewable sources of energy a key priority for California's economic and environmental future; and WHEREAS increased use of renewable electricity is one of the most promising means to reduce greenhouse gas emissions in the transportation sector and meet California's 2050 greenhouse gas reduction goals; and WHEREAS fostering greater and more timely renewable energy development requires a more cohesive and integrated statewide strategy by California's energy and environmental agencies, including greater coordination and streamlining of the siting, permitting and procurement processes for renewable energy generation, improving the manner in which California develops its transmission infrastructure, and encouraging technically and economically feasible distributed renewable energy technologies; and WHEREAS in 2002, Senate Bill 1078 added to Chapter 2.3 of Part I of Division 1 of the Public Utilities Code, a new Article 16 (commencing with Section 399.11) establishing the California Renewable Portfolio Standard (RPS) Program, which requires the State Energy Resources Conservation and Development Commission ("CEC") and the Public Utilities Commission ("PUC") to work collaboratively to implement the RPS Program; and WHEREAS Senate Bill 1078 established a renewable energy standard and required electrical corporations to increase their total procurement of eligible renewable energy resources by at least 1 percent per year so that 20 percent of their retail sales are procured from eligible renewable energy resources by 2017; and I hnp://gov.ca.gov/index.php?/print-version/executive-order/13269/(I of3)92120095:25:21 PM 039 Office of the Govemor of the State of Cal ifornia WHEREAS in 2003 Governor Schwarzenegger called for an acceleration of the RPS, urging that 20 percent of California's electricity come from renewable sources by 2010 rather than 2017, seven years earlier than previously required, and this accelerated standard became law in September 2006 when Governor Schwarzenegger signed Senate Bill 107; and WHEREAS in 2003, the PUC and the CEC adopted the 2003 Energy Action Plan I, which accelerated the RPS 20 percent renewable energy goal to 2010; and WHEREAS in 2006 Senate Bill 107 and.Senate Bill 1036 further defined the roles and responsibilities of the CEC and PUC and accelerated the implementation of the RPS; and WHEREAS as stated in Executive Order S-14-08, an increase in renewable energy production has multiple and significant benefits to California's environment and economy, including improving local air quality and reducing greenhouse gas pollution among other benefits; and WHEREAS as stated in Executive Order S-14-08, increased development of renewable electricity sources, energy efficiency and demand response are needed to meet the greenhouse gas reduction goal of 1990 levels and 80 percent of the 1990 levels by 2050, making the success and expansion of renewable energy sources a key priority for California's economic and environmental future; and WHEREAS the goals and purposes of the RPS Program and the goals and purposes of AB 32 are mutual and compatible because an increase in the use of renewable electricity will reduce greenhouse gas emissions; and WHEREAS the joint and coordinated efforts of the energy and environmental agencies are intended to assure that the goals and purposes of these various programs will be implemented by investor-owned and publically-owned utilities to the maximum extent operationally and economically feasible and thereby will achieve the greatest results; and WHEREAS the expansion of the RPS Program and the implementation of a complementary regulation under AB 32 designed to further reduce greenhouse gas emissions through the expansion of electricity production from renewable energy sources will advance the goals and purposes of both programs; and WHEREAS the AB 32 Scoping Plan adopted by the ARB in December 2008 recommends achieving a statewide renewable energy mix of 33 percent as a key element for reducing greenhouse gas emissions to 1990 levels by 2020; and WHEREAS such a complementary regulation under AB 32 will encourage the development and use of renewable energy beyond those required by the RPS Program; and WHEREAS Executive Order S-14-08 established a target that all retail sellers of electricity shall serve 33 percent of [heir load with renewable energy by 2020; and WHEREAS publically-owned utilities provide a significant amount of electricity in California and must be included in statewide efforts to reduce greenhouse gases from their systems in a manner that recognizes their individual circumstances. NOW, THEREFORE, 1, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of the power vested in me by the Constitution and statutes of the State of California, do hereby order effective immediately as follows: I. That the ARB, under its AB 32 authority, shall adopt a regulation consistent with the 33 percent renewable energy target established in Executive Order S-14-08 by July 31, 2010. In developing the regulation, the ARB may consider different approaches that would achieve the objectives of the Executive Order and may increase the target and accelerate and expand the time frame based on a thorough assessment of such factors as technical feasibility, system reliability, cost, greenhouse gas emissions, environmental protection or other relevant factors. 2. That the ARB shall work with the PUC and the CEC to ensure that a regulation adopted under authority. of AB 32 to encourage the creation and use of renewable energy sources shall build upon the RPS Program and shall regulate all California load serving entities, including investor-owned utilities, publically-owned utilities, direct access providers and community choice aggregators. 3. That the PUC and the CEC are requested to provide advice and assistance to, and cooperate with, the ARB in its consideration and implementation of a regulation to reduce greenhouse gas emissions through the creation and use of renewable energy sources. The ARB may delegate to the PUC and the CEC any policy development or program implementation responsibilities that would reduce duplication and improve consistency with other energy programs such as demand response, energy efficiency and energy storage. http://gov.ca.govfndex.php?/print-vmionlexmutive-order/13269/ (2 of 3)9121(20095:25:21 PM 040 i Office of the Govemor of the Slate of California I 4. That the ARB shall consult with the Independent System Operator and other load balancing authorities on, among other aspects, impacts on reliability, renewable integration requirements and interactions with wholesale power markets in carrying out the provisions of this Executive Order. 5. The ARB shall establish the highest priority for those resources that provide the greatest environmental benefits with the least environmental costs and impacts on public health that can be developed most quickly and that support reliable, efficient, cost-effective electricity system operations including resources and facilities located throughout the Western Interconnection. I This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the Stateof California, its agencies, departments, entities, officers, employees, or any other person. I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this Order. IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 15th day of September 2009. ARNOLD SCHWARZENEGGER Governor of California ATTEST: DEBRA BOWEN Secretary of State 041 http://gov.m.gov(ndex.php?/print-venionlexemtive-order/] 32691 (3 of 319212009 5:25:21 PM INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES, DATE: SEPTEMBER 28, 2009 SUBJECT: UPDATE ON SOLID WASTE AND RECYCLING PROGRAMS Annual statistics for various solid waste and recycling programs are attached for your reference. The reporting period covers Fiscal Year 2008-09. In August 2009, the City filed its annual report with the State on Azusa's compliance effort with the State's recycling mandate, AB 939, for calendar year 2008. Compliance is measured in terms of lbs per person per day disposed at landfills. Azusa's limit is set at 6.3 lbs per person per day, which is equivalent to 50% waste diversion. The City of Azusa reported disposing of 5.6 lbs per person per day, well under our limit. Processing mixed waste through Athens' material recovery facility (MRF) continues to be the central program relied on by the City to achieve the AB 939 waste reduction requirements and the program continues to keep the City in compliance. As shown in the attached report, about 40% of the waste diverted through the MRF is yard waste. During last fiscal year, this amounted to about 5,000 tons, more tonnage than was collected from single family residential customers, which totaled about 3,000 tons during the same period. Unfortunately, when Puente Hills landfill closes in October 2013, we will no longer be able to transport yard waste to that facility and get recycling credit for it being used as alternative daily cover (ADC). This has prompted some cities to begin the process of exploring recycling options for yard waste. Athens Services also has indicated that they have purchased a compost facility and will have an option available for the City. Staff will continue to administer other recycling programs referenced in attached. We are in the process of having maintenance performed on the compartmentalized recycling bins used mostly by schools to recycle beverage containers, newspaper and mixed paper. We also are continuing to support the Sharps Mail Back Container program which seems to be fairly popular at the Senior Center. Staff is in the process of purchasing additional Reusable Grocery Bags, in part, with the help of a $1,000 donation from Athens Services. We will be supporting Los Angeles County's public education campaign, November 15 through December 17, to promote greater use of "reusable" grocery bags. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities 042 SOLID WASTE PROGRAM UPDATE FY 2008-2009 A. Used Oil Recycling: Collection Centers: 5 Gallons Collected: 6,627 Filters Collected: 754 Drain Pans Distributed: 500 Program Expense (Consultant fee, containers, City staff time, advertisement, promo items) $13,663.98 B. Sharps Collection Program: Pick -Up Locations/Containers Distributed: 1) Azusa Medical Pharmacy/ 17 (20.73%) 2) Foothill Drug Pharmacy/ 16 (19.51%) 3) Azusa Senior Center/49 (59.75%) Containers Purchased: 192 Total Mail -back Containers Distributed: 82 Program Expense (Containers & bus shelter ad): $4,774.67 C. Household Hazardous Event Result: Household Served: 1225 (1,000 Vehicles) Summary: Motor Oil 735 gallons Anti -Freeze 130 gallons Paint 6540 gallons Dry Cell Battery 790 pounds Oil Filters 250 pounds Miscellaneous 3275 gallons Car Batteries 185 units CRT's 344 units Misc. E -Waste 20475 pounds Program Expense: N/A sponsored by Los Angeles County Sanitation Districts D. Beverage Container Recycling Program: Participants: 15 schools and non-profit organizations Total Tons Recycled: 215 tons (430,000 pounds) Combined Fund Earned: $11,016.92 Program Expense: $7,400 contribution to California Resource Connections for River Clean -Up Event on April 18, 2009 E. Reusable Bag Program: Bags Purchased: 2500 Bags Distributed: 2344 Program Expense (Bags & Bus shelter ad) $7,023.55 1 043' F. Materials Reclaimed/Recycled from Target Demolition Permit: Lumber: 106.47 Tons Concrete: 3,703 Tons Ferrous and Non -Ferrous Metal: 276.55 Tons Asphalt: 1,058 Tons Brick: 500 Tons G. Athens Services Contract: (FY 08-09) Yard Waste: Direct Haul ADC: Tons: Cost: Cost/Ton: MRF Recovery: List All Materials Here: Office/Computer Paper Newspaper Glass Cardboard Ferrous (Iron/Steel) Aluminum Plastics Yard Waste 3,002.2 $ 112,400 $37.44 73.94 416.11 201.61 1,692.31 881.08 73.61 569.14 5,031.27 H. AB 939 Report: Azusa Disposal Limit: 2008 Actual Disposal (at landfills) Variance: 6.3 lbs/person/day 5.6 lbs/person/day -11.11% (40% of materials diverted) AM ! Other Materials (Mixed Paper Waste) 2,712.51 Concrete 532.94 C f C&D Recovery 270.13 f . Total Tonnage Recycled: 12,454.65 Incineration Tonnage: 971.50 Total Diversion: 13,426.15 Tons In MRF: 41,485.41 l Pct Diverted by MRF: 30% Pct Diverted by MRF/Incineration: 32% **MRF Program Cost: $ 1,416,181.00 Cost/Ton: $105.47 j **MRF Cost above Landfill H. AB 939 Report: Azusa Disposal Limit: 2008 Actual Disposal (at landfills) Variance: 6.3 lbs/person/day 5.6 lbs/person/day -11.11% (40% of materials diverted) AM