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HomeMy WebLinkAboutAgenda Packet - March 25, 2005 - UBAZUSA LIGHT & WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 F.Se",U O REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON AZUSA EIGHT 6 WATER MONDAY, MARCH 28, 2005 6:30 PM KEITH HANKS DAVE HARDISON BOARD MEMBER BOARD MEMBER IOSEPH R. ROCHA BOARD MEMBER 6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call 1. A. ELECTION OF OFFICERS Select and approve by majority vote the election of Utility Board Chairperson and Vice Chairperson. I -A. Election of Officers.doc 001 B. 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.) 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 individua0y, it will be considered under SPECIAL CALL ITEMS. H. CONSENT CALENDAR A. Minutes. Recommendation: Approve minutes of regular meeting of February 28, 2005, as written. II -A. Feb28 Min, DOC Orange Avenue Emergency Repairs. Recommendation: Approve the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA WAIVING FORMAL SEALED BIDDING PROCEDURES AND AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER FOR AN AMOUNT NOT -TO- EXCEED $131,480 FOR EMERGENCY WATER PIPELINE REPAIR. II -B. FJrergencyO� i pipeUning Orange Ave 111. SCHEDULED ITEMS A. Refuse Rate Adjustments for 2005-2006. Recommendation: Approve the following resolution: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, APPROVING THE SEVENTH AMENDMENT TO THE EXCLUSIVE FRANCHISE AGREEMENT WITH ARAKELIAN ENTERPRISES TO AMEND THE SERVICE RATES AND FEES FOR THE PERIOD OF APRIL 1, 2005 THROUGH MARCH 31, 2006. 0 III -A. Rpt re 05-06 ev' Refuse Rate Adtustm _ B. Heck Reservoir Lease to Verizon. Recommendation: Approve lease of Canyon Filtration Plant Hecic Reservoir to Verizon Wireless in amount of $1995 per month, and authorize City Manager to sign execution agreement. III -B. Lease to Verrzon.doc - � ';�f{J,-V ., 2 002 N. STAFF REPORTS/COMMUNICATIONS A. Monthly Update: Electric Yard Renovation Project =- IV -A. Elec Yard Off k Update.doc B. Monthly Update: Systems & Software Customer Service Information System N-& S&5 CIS Update 3-05.DOC C. Monthly Power Resources Update E NL. My Power Res Update. ppt D. Monthly Legislative and Regulatory Update IV -D. Regulatory Update.ppt E. San Juan Quarterly Fuel Cost Adjustment N -E. San Juan FCA.doc F. Update on Broadband Over Powerline Technology (BPL) (Verbal) G. Southern California Public Power Authority (SCPPA) Annual Congressional Staff Tour of SCPPA Facilities (Hoover Dam), June 3-5, 2005 (Verbal) H. American Public Power Authority (APPA) Annual Conference (Anaheim), June 18-22, 2005 (Verbal) V. DIRECTORS' COMMENTS V1. ADIOURNMENT A. Adjournment `9n compfiance with the Americans with Disabilities Act, ifyou need special assistance to participate in a citymeetiq„ please contact the City Clerk at 626-st2-5129. Notifcation 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. " 3 OVMM a ELECTION OF OFFICERS TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES .� DATE: MARCH 28, 2005 SUBJECT: ELECTION OF OFFICERS RECOMMENDATION It is recommended that the Utility Board/City Council elect by majority vote a Chairperson and Vice Chairperson to serve as officers of the Utility Board, BACKGROUND The Utility Board was formed in May 2001 pursuant to ordinance 01-03, which was later amended by ordinance 01-07 (attached). The Utility Board is composed of City Council Members acting as Utility Board Members, with the Director of Utilities serving as executive advisor to the Board. The Utility Board meets monthly on the fourth Monday of each month in the downstairs conference room at Azusa Light & Water (ALMV) offices to conduct business related to the City's electric and water utilities, and solid waste collection services. Section 2-415 of the attached ordinance requires the Utility Board to elect a Chairperson, Vice Chairperson, and a Secretary annually no later than the second meeting following appointment of the Mayor Pro Tem of the City Council. The functions of Secretary are delegated to the City Clerk. New members are urged to read attached ordinance regarding the Utility Board functions. FISCAL IMPACT There is no fiscal impact of electing officers. Prepared by: Cary lUscheuer, Assistant to the Director of Utilities 9.: 1 0rd01-07UB.pdf M ORDINANCE NO. 01- O7 AN ORDINANCE OF THE CITY OF AZUSA, CALIFORNIA, AMENDING CHAPTER 2, ARTICLE V, DIVISION 5 OF THE MUNICIPAL CODE REGARDING THE COMPOSITION, OFFICERS, POWERS AND DUTIES OF THE UTILITY BOARD THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 2, Article V, Division 5, Section 2-413 of the Azusa Municipal Code is hereby replaced, in its entirety, with the following: "Sec. 2-413 Composition. The board shall consist of five members. The city council may choose by a majority vote of the council to appoint its five members as the ex officio members of the board. All members shall be appointed by a majority vote of the city council and shall serve pursuant to section 2-32. Members of the board may be removed pursuant to section 2-32" SECTION 2. Chapter 2, Article V, Division 5, Section 2-414, of the Azusa Municipal Code is hereby replaced, in its entirety, with the following: "Sec. 2-414 Powers and Duties. When the board members are acting in their capacity as both members of the board and members of the city council, the board, acting jointly with the city council, shall have the following powers and duties: 1.- To establish electric power and water rates, capacity and connection charges, meter charges and such other fees and charges as may be appropriate and to generally regulate, control, manage, renew, repair and extend the water system and the electric power generation and distribution system of the City of Azusa. 2. To make rules and regulations governing the conduct of the board and its members and the employees of Azusa Light and Water. 3. To control and order the expenditure of all money received from the sale or use of water and electric power for defraying of expenses, maintenance, repairs, construction, extension and operation of the water and electric power system and for any expenses for additions to same. 4. To supply Azusa Light and Water's customers with water and electric power for any and all purposes and adopt all necessary rules and regulations for the provision of service. 5. To enter into contracts with any public or private agency for the exchange RVPUBVFR616015 005 of water or electric power, provided that any such water or electric power so exchanged by the city shall be repaid in full to the city within a reasonable period. 6. To hold, lease, acquire and purchase property in the name of the city. 7. To dispose of property surplus to the needs of the water or electric power systems, provided that any sale, lease or disposal of its assets, including property used in the generation of electrical energy, other than those unnecessary to the operation of the water and electric power systems. 8. To engage such legal services as maybe required or require the services of the city attorney." SECTION 3. Chapter 2, Article V, Division 5, Section 2-415 of the Azusa Municipal Code is hereby replaced, in its entirety, with the following: "Sec. 2-415 Chairperson. Vice Chairperson and Secretary The board shall elect one of its members as chairperson, one as vice chairperson, and one as secretary. Each of these three (3) board officers shall hold office for one (1) year and until their successors are appointed. Initially, officers shall be selected no later than the second meeting of the board following its appointment. Subsequent selection of officers shall occur no later than the second meeting following the selection of the mayor pro tem of the city council.. The secretary may delegate to the city clerk duties such as making tape or other recur mgs of meetings o e Foazd and is SECTION 4. Chapter 2, Article V, Division 5, Section 2-418 of the Azusa Municipal Code is hereby replaced, in its entirety, with the following: "Sec. 2-418 Budget. While the board members are acting in their capacity as both members of the board and members of the city council, the board shall initially adopt a budget for Azusa Light and Water within four months of its first meeting, and thereafter shall annually adopt a budget for Azusa Light and Water, showing the expected expenses and revenues of the water and electric power enterprise. The city manager will present the budget to the board for adoption. The annual budget shall be incorporated into the budget of the city." SECTION 5. Chapter 2, Article V, Division 5, Section 2-419 of the Azusa Municipal Code is hereby replaced, in its entirety, with the following: "Sec. 2-419 Loans. While the board members are acting in their capacity as both members of the board and members of the city council, the board may approve and authorize loans to or from the funds subject to its control from or to s,2avaa[srnM ir, city funds on a temporary basis." SECTION 6. Severability. If any section, subsection, sentence, clause, -phrase or portion of this ordinance is for any reason deemed or held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this ordinance. The city council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or other portions might subsequently be declared invalid or unconstitutional. SECTION 7. This ordinance shall be in full force and effect thirty (30) days after its passage. SECTION 8. A summary of this ordinance shall be published in the manner required by law. PASSED, APPROVED AND ADOPTE day of October, 2001. Cristina Cruz -Madrid Mayor ATTEST: 0�- Vera Mendoza, City Clerk ell RVPU3VFF%18015 007 Irl 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 Ordinance No. 01-07 was duly introduced and placed upon its first reading at a regular meeting of the City Council on the 17 day of September2001, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 1_ day of October 2001, by the following vote, to wit: AYES: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE APPROVED AS TO FORM: City Attorney RVPUBUFF\618015 Vera Mendoza, City Clerk EXCERPTS FROM ORDINANCE 01-03 Sec. 2-416 Meetings. The board shall establish a regular time and place of meeting and shall meet regularly at least once a month or more frequently as workload requires. The regular place of meeting shall be in the Azusa Light and Water building. At least once every three (3) months, or more frequently if the board desires, the board may meet in other places and locations throughout the city for the purpose of encouraging interest and facilitating attendance by people in the various neighborhoods in the city at the meetings. Special meetings may be called by the chairperson or by three (3) members of the board, upon personal notice being given to all members or written notice being mailed to each member and received at least 36 hours prior to such meeting, unless such notice is waived in writing. All board meetings, and agendas for such meetings, shall be publicized in advance bywritten notice given to newspapers serving the city at least three (3) days prior to regular meetings and at the same time as members are notified of special meetings. In addition, notice of meetings shall be posted regularly at locations normally utilized by the city for such purposes. All meetings shall be open to the public pursuant to the provisions of the Ralph M. Brown Act. (Gov. Code § 54950 et seq.) The board shall cause to be kept a proper record of its proceedings. The records and files of the board and its officers shall include, but not be limited to, all official correspondence, orcopies thereof, to and from theboard and its members received intheir official capacities and shall be kept open for inspection bythe public at reasonable times in the office of the city clerk. Sec. 2-417 Technological SWort. The members ofthe board may receive technological support in the form of hardware, software or reimbursement for telecommunications services used in connection with serving on the board. Members shall also be reimbursed for any reasonable and necessary expenses incurred by them in the performance of their duties as members of the board. 009 H CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, FEBRUARY 28, 2005 - 6:30 P.M. The Utility Board Members of the City of Azusa met in regular session, at the above date and time, in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairperson Chagnon called the meeting to order. ROLL CALL PRESENT: BOARD MEMBERS: HARDISON, STANFORD, CHAGNON, ROCHA, MADRID ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: City Attorney Ferre, Director of Utilities Hsu, Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Assistant Director of Electric Operations Ramirez, Assistant Director of Water Operations Anderson, Assistant Director of Customer Care and Solutions Vanca, Administrative Analyst Yang, City Clerk Mendoza, Deputy City Clerk Toscano. Ceremonial Call to Order Roll Call Also Present Ceremony Director of Utilities Hsu expressed appreciation to Board Member Madrid and Board Member Appreciation Stanford for their participation in the Utility Board meetings, workshops and seminars regarding To Madrid municipal utilities as well as for the creation of the Azusa Utility Board. He detailed the history of & Stanford the Board since its inception and the positive impact it has had with regard to utility issues. He then presented gifts of appreciation to both Ms. Madrid and Mr. Stanford, who gracefully accepted them. Members of the Utility Board recessed at 6:41 p.m. to enjoy cake to celebrate the event as well as Recess to celebrate birthdays of Dick Stanford and Dave Hardison; and reconvened at 6:48 p.m. Reconvene Public Participation None. Pub Part None. 010 The CONSENT CALENDAR consisting of Items 11- A through II -J, were approved by motion of Consent Cal Board Member Stanford, seconded by Hardison and unanimously carried with the exception of Approved item II -D, which was considered under the Special Call portion of the Agenda. A. The Minutes of the regular meeting of January 24, 2005, were approved as written. Min Appvd B. The Notice of Completion for Capital Improvement Project Water Treatment Plant entrance Notice of and fencing improvements was accepted and the City Clerk's Office was directed to execute Completion said Notice of Completion and have same recorded at the Office of the Los Angeles County Wtr Trtmt Recorder. Plant C. Approval was given to amend the Hunter Electric Service Company Blanket Purchase Order Amend P.O. for the fiscal year ending June 30, 2005 in the amount of $15,000. Hunter Elect. D. SPECIAL CALL ITEM. Spec Call E. Approval was given to award contract for consultant design services for Membrane Black R Treatment Upgrade and Expansion of Canyon Filtration Plant to Black &Veatch Engineering in Veatch the amount of $1,300,000. F. Bids for Project W-196, Replacement of 5,100 Linear Feet of 12 -inch Distribution Main in Project W - Fifth Street, Azusa, were approved and authorized to be advertised. 196 Bids G. Approval was given to amend budget for contract with Wren & Associates to perform Bdgt Amnd inspection services on Project W-194, Cypress Waterline, in the amount of $32,000. Wren&Assoc. H. The Quitclaim of Utility Easement was approved and the Utility Director was authorized to Quitclaim sign. This is for Lots 1 through 7 of Block 37 (Sav-on Furniture Site). Utility esmt 1. Approval was given for the MOU with Athens Services to authorize direct hauling of waste MOU w/ from Azusa Land Partner's property (Monrovia Nursery Development) to area landfills. Athens J. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AUTHORIZING A Res. 05-C18 BRIDGE LOAN FROM THE WATER FUND IN AMOUNT OF $130,000 TO CITY OF AZUSA GENERAL Auth Bridge FUND. Loan Special Call Items Spec Call Items Board Member Hardison addressed item 11-D, approval of a Lease of City Property at the Heck, Lease of Prop Reservoir Site on San Gabriel Canyon Road to Verizon Wireless to install an unmanned Verizon telecommunications facility. He asked about negotiations, site survey, best spots, and payment of Removed $1,500 and suggested that staff further negotiate the cost. It was consensus of the Board Members that staff be directed to further negotiate the price for a minimum of $1,800. Sched Items Scheduled Items Assistant Director of Resource Management Tang presented item regarding procurement of Tang Insurance for San Juan Outage Insurance, detailing the provisions and cost of the policy. Comments Moved by Board Member Rocha, seconded by Board Member Stanford, and unanimously carried XL Capital to authorize staff to procure an outage insurance coverage from XL Capital/Indian Harbor Indian Harbor Insurance Company for San Juan Unit 3 for the coverage period commencing July 1, 2005 through Ins San Juan June 30, 2006. Unit 3 02/28/05 PAGE TWO Oil Assistant Director of Resource Management Tang presented the Scheduling Services Agreement Tang with Salt River Project (SRP) stating that this is a very valuable agreement which has enabled the Comments City to operate in the deregulation market and noted the cost effectiveness of the Agreement. Moved by Board Member Stanford, seconded by Board Member Hardison, and unanimously Scheduling carried to approve the Scheduling Services Agreement between the City and Salt River Project Svs Agmt SRP (SRP) and authorize the Mayor to execute the agreement upon the preparation of the execution copy. Director of Utilities Hsu presented the Professional Services Agreement with Braun & Blaising, Dir of Util P.C., stating that there is a need to address the issue of exit fees which will affect anticipated Comments electric customers as in the Monrovia Nursery development area. The agreement will provide services and assistance with regard to understanding of laws, regulatory decisions and rulings relating to various exit fee charges, facilitate in discussions with Southern California Edison, assist in negotiations, monitor CPUC proceedings, and provide additional legal and regulatory services. Moved by Director Hardison, seconded by Director Rocha, and unanimously carried to approve the Professional Services Agreement between the City and Braun & Blaising, P.C. with an initial Agmt Braun budget of $30,000 and authorize the Mayor to execute the agreement upon the preparation of & Blaising the execution copy. P.C. Staff Reports/Communications Staff Rpts Updates Director of Utilities Hsu provided an update on the Electric Yard Renovation stating that everything is on schedule. Assistant Director of Electric Operation Ramirez responded to question regarding Electric Yard the schedule and the slow start of the project but advised that it is on schedule now and noted Renovation the completion of certain items, i.e. fire sprinklers, duct work, rough air conditioning and plumbing, etc. The Monthly Updates on Systems & Software Customer Service Information System, Power Updates Resources, and Legislative & Regulatory were presented, but, not discussed. Not discussed Assistant to the Utilities Director Kalscheuer responded to questions posed by Director Stanford regarding adjustment for landfill rates and the billing process. He stated that staff would create a one year forecast for next year's rate, based on last year's disposal tonnage and landfill rates. He explained that the adjustment in July is based on data from April through March and so adjusting rates early to account for newly announced landfill rate changes was not a problem. Discussion was held between Board Members, Staff, and Mr. Dennis Chiappetta of Athens Services regarding the process for adjustment and future adjustments. Assistant to the Utilities Director Kalscheuer provided an update on AB 939, stating that the diversion rate for 2003 was at 51 %, which is good. He noted disposal tonnage increased from 2002 to 2003 by 11.6 %, due to construction projects such as Mountain Cove Project, the Schools District, and additional self haul waste. He discussed the need to increase waste diversion if disposal trends continued. He then answered questions regardingyard waste, and the landfills rationale for increasing rates. Mr. Chiappetta addressed the Board stating that Athens is working on alternative locations where waste can be taken to reduce costs to the City. C. Kalscheuer Comments Landfill C. Kalscheuer AB 939 Administrative Analyst Yang provided an update on Online Materials Exchange Website presenting S. Yang a power point demonstration on how to use the website which included steps on how to log on, Comments browsing for Information, and interacting with the website to obtain items, etc. Chairperson Online Chagnon suggested the system be tested for user friendliness by a non-techno group. Materials Exc Website 02/28/05 PAGE THREE fig Additional discussion was held regarding making the service available to the public at the Library Continued as well as marketing it to Chamber of Commerce, Costco; turn around, time line for posting and the process in general. Item regarding 2"' Quarter Work Plan Update was presented but, not discussed. 2' Qtr Work Plan Director's Comments Dir Cmts Director of Utilities Hsu advised that he will be out of town at a conference in San Diego Dir of Util and also advised that at the next Board Meeting there is a need to adjourn to a workshop in order Comments to introduce the new Council Members/Board Members and provide overview of the Utility Board Workshop process. Board Member Madrid asked that the Board consider hiring a water consultant in order for the Madrid City to be represented in River Projects. She explained that the City of Azusa should take more of Comments a leadership role in water projects, etc. Board Member Stanford pointed out the fact that there are several facets of the water and power Stanford entity of the City and the importance of staff as a source to relay information to the Board Comments Members. He noted that this should be passed on the new incoming Board Members. It was consensus of the Board Members to adjourn with thanks to Board Members Madrid and Adjourn in Stanford and in memory of Marie Philleo who recently passed away. Memory of Marie Philleo TIME OF ADJOURNMENT: 7:45 P.M. SECRETARY NEXT RESOLUTION NO. 05-C19. 02/28/05 PAGE FOUR 013 0 AZUSA � CMI i WOEL CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MARCH 28, 2005 SUBJECT: APPROVAL OF EMERGENCY REPAIRS TO ORANGE AVENUE PIPELINE RECOMMENDATION It is recommended that the Azusa Utility Board/City Council declare an emergency and waive formal bidding and approve a contract with Spiniello Construction for the repairs to a 12 -inch pipeline in Orange Avenue for $131,480. BACKGROUND The Water Division was notified approximately three weeks ago that the City of West Covina will pave Orange Avenue the week of May 1. The Water Division has a 12 -inch waterline in Orange Avenue that has required several leak repairs over the last year which has made the pipeline a prime candidate for replacement. However, the imminent paving of Orange Avenue has made it necessary to reline the pipeline to stay ahead of the paving project. Cement relining of pipeline is quicker and less expensive than replacement and is an acceptable method for extending the life of existing pipelines. The Water Division has used relining on several pipelines in the last few years and those pipelines have been effectively rejuvenated. If the pipeline is not repaired, it may be necessary to cut the new pavement to make repairs and then replacement the pavement per West Covina Specifications which require a pavement patch 50 feet wide from curb to curb. There are very few contractors who do pipeline relining with cement mortar coating. Spiniello Companies of Santa Fe Springs has submitted an estimate of $131,480; Heitkamp, Inc., of Watertown, Connecticut has submitted an estimate of $182,500. FISCAL IMPACT Funding for this project in amount of $131,480 will come from approved Capital Improvement Project budget for Main Replacement work. Prepared by: Chet F. Anderson, Assistant Director- Water Operations 014 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CIN OF AZUSA WAIVING FORMAL SEALED BIDDING PROCEDURES AND AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER FOR AN AMOUNT NOT - TO -EXCEED $131,480 FOR EMERGENCY WATER PIPELINE REPAIR. WHEREAS, Section 2.522 of the Azusa Municipal Code permits the City to waive formal bidding procedures for public projects in emergencies; and WHEREAS, Section 2.522(a) of the Azusa Municipal Code requires approval by the City Council of expenditures of more than $100,000 for emergency public projects; and WHEREAS, the City Council has determined that the relining of a 12 -inch water line in Orange Avenue is an emergency public project requiring immediate attention. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY FIND AS FOLLOWS: Section 1. That the formal sealed bidding process is waived; and Section 2. That a Purchase Order, not to exceed $131,480.00, be issued to Spiniello Companies for Emergency Pipeline Repairs to the Orange Avenue 12 -inch water pipeline. PASSED, APPROVED AND ADOPTED this 28th day of March, 2005. MAYOR 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City Council of the City of Azusa at a regular meeting thereof held on the 28th day of March, 2005. AYES: BOARD/COUNCIL MEMBERS: NOES: BOARD/COUNCIL MEMBERS: ABSENT: BOARD/COUNCIL MEMBERS: CITY CLERK 015 AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MARCH 28, 2005 ^' SUBJECT: REFUSE RATE ADJUSTMENTS FOR 2005-2006 RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve of resolution amending the agreement with Athens Services to reflect rate adjustments made pursuant to the Franchise Agreement. BACKGROUND At its February 2005 meeting, the Utility Board learned that the Los Angeles County Sanitation Districts was ratcheting up landfill rates over next couple years in order to pay for increased costs associated with loading waste on trains and transporting waste to remote desert landfills. New landfill rates went into effect on January 1, 2005, and another scheduled increase will take place on January 1, 2006 (see attachment). While our contract with Athens Services, our exclusive refuse collection contractor, calls for rate adjustments annually on July 1, it is not advisable to wait until July this year due to landfill cost increases. Pursuant to our Franchise Agreement, Athens is entitled to recover costs associated with disposal of waste on a "pass-through" basis, meaning that if costs increase $1, rates must be increased $1 to pay for the added costs. Athens does not profit on this cost adjustment, it is just "passed -through" to the landfill operator, in our case, the Los Angeles County Sanitation Districts. In addition to adjusting rates to cover added disposal costs over this next year, it is recommended that rates also be adjusted for changes in the consumer price index (CPI) since the last adjustment. The CPI increased by 1.82 percent since our last adjustment, and it is suggested that the City provide Athens Services with a CPI adjustment for contract -specified rate components. These include: (1) the "Service Rate" which compensates Athens for collection of solid waste and yard waste; and (2) the per ton "Processing Cost" which compensates Athens for separating recyclable materials from mixed waste that is taken to 016 their Materials Recovery Facility or MRF. CPI adjustments and landfill cost increases impact the City's franchise fee, which is 10 percent of the total fees for Service, Processing, Landfill (disposal), and the Franchise fee itself. No adjustment is proposed for the City's AB 939 Fee this year, which is applied to the total rate and used to pay for the City's compliance with AB 939, the state's recycling mandate. Following table shows the proposed total rates for the different services, for rates effective April 1, 2005, and inclusive of the aforementioned cost components: Proposed Monthly Current Rate Service Monthly Effective Percent Single Family Barrel Service $19.05 $19.82 4.04% Multi -Family Bin Service $15.87 $16.92 6.60% 3 Cubic Yard Bin -1 time per week $91.76 $97.33 6.07% Rate calculations are included in attachments, and a detailed rate schedule is also included for all service levels. FISCAL IMPACT Single family rates will increase by $0.77 per customer per month or about $5,700 per month for all customers; Multi -family rates will increase by $1.05 per customer per month or about $6,300 per month for all customers; and Commercial bin service rates will increase by $5.57 per month for most common service level --a 3 -cubic yard bin serviced once per week, or about $9,000 per month for all commercial customers. The proposed rates are for effective period of April 1, 2005 through end of March 31, 2006, and consider landfill adjustments by the Los Angeles County Sanitation Districts on January 1, 2005 and January 1, 2006. Prepared by: Cary I(alscheuer, Assistant to the Director of Utilities Attachments: Notice of Landfill Adjustments from Sanitation Districts of Los Angeles County A LACSD Nov 04 Notice. pdf 017 Resolution Approving Rate Adjustment Amendment Reso-7th Amend for FY 2005-06.doc Calculations of Rate Adjustment r�O Refuse Rate Adjustment. pdf M II 1955 Workman Miil Road, Whittier, CA 90601-1400 Mailing Address: P.O. Box 4998, Whittier, CA 90607-4998 Telephone: (562) 699-7411, PAX: (562) 699-5422 wswr.lacsd.org Dear City Manager/City Administrator: OF LOS ANGELES COUNTY JAMES.P. STAK Chief Engineer and General Manager November 9, 2004 File No. 31R-10.10 Rates for Solid Waste Materials Recovery Transfer, and disposal Facilities This is to advise you of new rates to be charged at the Puente Hills Landfill, the Scholl Canyon Landfill, the South Gate Transfer Station, the Downey Area Recycling and Transfer (DART) Facility, and the new Puente Hills Materials Recovery Facility (MRF), starting January 1, 2005. The Sanitation Districts have been working to provide a replacement solid waste management system to serve the long-term solid waste management needs of communities throughout Los Angeles County after the closure of the Puente Hills Landfill in 2013. The system will be comprised of materials recovery/transfer stations, intermodal rail facilities, and remote out -of -County landfills. A cost transition program is being implemented to avoid sudden large tipping fee increases that would otherwise result after closure of the Puente Hills Landfill, and to smooth the transition to the full cost of remote disposal over an approximately 20 -year period. The program will utilize the remaining capacity of the Puente Hills Landfill, together with other sources, to accumulate funds to ensure that a fully operational, competitive remote disposal system is available to replace the Puente Hills Landfill. To implement the first three years of the cost transition program, the increase in the municipal solid waste rate at the Puente Hills Landfill will be $1.77/ton per year, with the initial increase effective January 1, 2005, and annually thereafter for two years. Increases in the minimum, hard -to -handle, tire, and special handling rates for cost transition, and for reasons described later in this letter for the hard -to -handle and tire rates, will also occur. The rates at the Puente Hills MRF will be the same as those at the Puente Hills Landfill, for the categories of solid waste accepted at the MRF. The municipal solid waste rates at the South Gate Transfer Station and at the DART Facility, which deliver much of their waste to the Puente Hills Landfill, will increase by $1.77/ton this year, plus $0.02/ton for recent increases to the County's Regulatory Service Fee, with subsequent annual increases of a minimum of $1.77/ton in the following two years. Commensurate increases in the minimum and hard -to -handle rates at these facilities will also occur. The rates at the Scholl Canyon Landfill will increase this year, effective January 1, 2005, to provide funds for capital projects and for general cost increases for routine operation and maintenance of the site. The municipal solid waste rate at the Scholl Canyon Landfill will increase by $2.10/ton. The increase is comprised of $1.00/ton in the Districts' basic operating rate, $0.66/ton to the City of Glendale for the lease payment made pursuant to the Joint Powers Agreement, $0.42/ton for the City's required host fee, and $0.02/ton for recent increases to the County's Regulatory Service Fee. Commensurate increases in the minimum, hard -to -handle, tire, and special handling rates, plus increases described below for the hard -to -handle and tire rates, will also occur. �p Re-Yclea Pcper 019 City Manager/City Administrator -2- November 9, 2004 Increases for the hard -to -handle and tire rates, and for the fee charged for the green waste recycling program at the Puente Hills Landfill, will also occur to offset certain increased costs. The rates described in this paragraph for these categories include the amounts necessary for the County's business license tax at the Puente Hills Landfill, and the lease payment and host fee to the City of Glendale at the Scholl Canyon Landfill. The rates for hard -to -handle items will increase by $1.10/ton at the Puente Hills Landfill, by. $1.25/ton at the Scholl Canyon Landfill, and by $1.00/ton at the South Gate Transfer Station and the DART Facility to offset increased extra costs for handling these types of waste. The rate for tires will increase by $5.50/ton at the Puente Hills Landfill and by $6.50/ton at Scholl Canyon Landfill to offset costs for meeting new State tire manifesting regulations. In addition, the rate for tires at the Puente Hills Landfill will increase by $4.40/ton in 2006 and 2007 to gradually offset increased operating costs and it is anticipated that similar increases at the Scholl Canyon Landfill will be recommended in those years. The fee charged for the green waste recycling program at the Puente Hills Landfill will increase by $1.10/ton to offset costs to transport green waste to offsite locations. In addition, the charges for pull -off services will increase, by different amounts at each landfill, to offset increased costs for providing the services and to apply the same basic charge of $25.00 for the service at each site. A copy of the new rate schedule is enclosed. If you have any questions regarding the rates, please call me at 562-699-7411, extension 2401. Very truly yours, James F. Stahl );ohn H. Gulledge, Head Solid Waste Management Department JHG:LR:ew Enclosure M COUNTY SANITATION DISTRICTS OF LOS ANGELES COUNTY SCHEDULE OF RATES FOR SOLID WASTE MATERIALS RECOVERY, TRANSFER, AND DISPOSAL FACILITIES SOUTH GATE TRANSFER STATION, South Gate 1) Municipal Solid and Inert Waste RATE RATE RATE Hard -to -Handle, Bulky Items JANUARY 1, 2005 JANUARY 1, 2006 JANUARY 1, 2007 PUENTE HILLS LANDFILL. Whittieri112 22.00 per load 23.75 per load 25.50 per load Municipal Solid and Inert Waste $22.65 /ton $24.42 /ton $26.19 lion . Hard -to -Handle, Bulky Items 29.80 /ton 31.57 /ton 33.34 /ton Tires 54.55 /ton 60.72 /ton 66.89 /ton Special Handling 44.65 /ton 46.42 /ton 48.19 /ton Minimum Charge 21.50 per load 23.25 per load 25.00 per load Pull -Offs 27.50 each 27.50 each 27.50 each Segregated Uncontaminated Green Waste (1 -ton minimum charge) 12.10 /ton 12.10 /ton 12.10 /ton PUENTE HILLS MATERIALS RECOVERY FACILITY (MRF). Whittier" Municipal Solid and Inert Waste $22.65 /ton $24.42 /ton $26.19 /ton Hard -to -Handle, Bulky Items - 29.80 /ton 31.57 /ton 33.34 /ton Minimum Charge 21.50 per load 23.25 per load 25.00 per load SOUTH GATE TRANSFER STATION, South Gate 1) Municipal Solid and Inert Waste $34.77 /ton $36.54 /ton $38.31 /ton Hard -to -Handle, Bulky Items 41.27 /ton 43.04 /ton 44.81 /ton Minimum Charge 22.00 per load 23.75 per load 25.50 per load DOWNEY AREA RECYCLING AND TRANSFER (DART) FACILITY. Downey0) 13.75 /ton COMMERCE REFUSE TO ENERGY FACILITY, Commercet" Municipal Solid and Inert Waste $38.54 /ton $40.31 /ton $42.08 /ton Hard -to -Handle, Bulky Items 45.04 /ton 46.81 /ton 48.58 /ton Minimum Charge 22.00 per load 23.75 per load 25.50 per load Segregated Uncontaminated Green Waste 28.10 /ton 28.10 /ton 28.10 /ton - Minimum Charge (Segregated Uncontaminated Green Waste) 14.05 per load 14.05 per load 14.05 per load SCHOLL CANYON LANDFILL_ Glendale""' Municipal Solid and Inert Waste _ $33.77 /ton Hard -to -Handle, Bulky Items 41.89 hon Tires 62.14 /ton Special Handling 48.46 /ton Minimum Charge 33.00 per load Pull -Offs 31.25 each Segregated Uncontaminated Green Waste (1 -ton minimum charge) 13.75 /ton COMMERCE REFUSE TO ENERGY FACILITY, Commercet" Refuse $39.00 /ton Minimum Charge 33.00 per load Documentation Destruction 39.00 /ton plus $465.00 per load SOUTHEAST RESOURCE RECOVERY FACILITY (SERRF). Lona Beach"' Municipal Solid and Inert Waste (I -ton minimum charge) $33.63 /ton Uncovered Loads Capable of Producing Litter: Puente Hills Landfill -$4.40/ton surcharge; $4.40 minimum Puente Hills MRF, South Gate, DART - $4.40/ton surcharge; $4.40 minimum Scholl Canyon Landfill - $5.00/ton surcharge; $5.00 minimum Commerce - $4.00/ton surcharge; $4.00 minimum Non -manifested Tire Loads: Puente Hills Landfill -$4.40/ton surcharge; $4.40 minimum Scholl Canyon Landfill - $5.00/ton surcharge; $5.00 minimum 11All rates excluding pull -offs and green waste rales include the following fees, as appropriate: California Integrated Solid Waste Management Fee: $1.40 per ton Los Angeles County Solid Waste Management Fee: $0.86 per ton Los Angeles County Department of Health Services Regulatory Service Fee: $0.18 per ton '2'All rates and surcharges include the Los Angeles County Business License Tax, as appropriate: 10% of gross receipts, excluding state and local fees and taxes "'All rates and surcharges include the City of Glendale - Scholl Canyon Landfill Assessment: 25% of gross receipts; vehicles owned and operated by the City of Glendale are exempt 14 'Rates effective August I, 2004; rates subject to change pursuant to the Commerce Refuse -to -Energy Facility Operating Agreement 1st Rate effective July 1, 2004; rate subject to change pursuant to the SERRF Joint Powers Agreement 021 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, APPROVING THE SEVENTH AMENDMENT TO THE EXCLUSIVE FRANCHISE AGREEMENT WITH ARAKELIAN ENTERPRISES TO AMEND THE SERVICE RATES AND FEES FOR THE PERIOD OF APRIL 1, 2005 THORUGH MARCH 31, 2006. WHEREAS, on October 2, 2000, the City Council of the City of Azusa, approved an Exclusive Franchise Agreement with Arakelian Enterprises, Incorporated (Contractor), for refuse collection and recycling services ("Original Agreement"); and WHEREAS, Section 5 of the Original Agreement requires that service rates be modified annually to account for cost of living changes and changes in disposal costs ("Adjustments") on July 1 of each year; and WHEREAS, on November 9, 2004, the County Sanitation Districts of Los Angeles County provided notice to the City that it increase rates at the Puente Hills Landfill effective January 1, 2005, and also will increase rates again effective January 1, 2006 and on January 1, 2007, in order to pay for infrastructure required to rail haul waste to remote landfills; and WHEREAS, delay in adjusting refuse collection and disposal rates will cause a larger impact on ratepayers in July of 2005 should the City and Contractor adjust rates effective July 1, 2005 as specified in the Original Agreement; and WHEREAS, the City and Contractor, agree to adjust rates effective April 1, 2005, instead of waiting this year until July 1, 2005; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES FIND AND DECLARE THAT: SECTION 1: Adoption of Seventh Amendment. The attached Seventh Amendment to the Exclusive Franchise Agreement Between the City of Azusa and Arakelian Enterprises, Inc. for Refuse Collection, Recycling and Disposal Services is hereby approved. The rate schedule adopted as part of the Seventh Amendment shall supercede any rate schedule previously adopted. SECTION 2: Effective Date. This Resolution shall become effective upon its adoption. SECTION 3: Authorization. That the Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Resolution. 022 PASSED AND APPROVED on this 28h day of March 2005. Mayor I HEREBY CERTIFY that the foregoing resolution was duly passed by the City Council of the City of Azusa at a regular meeting of the Utility Board/City Council thereof on the 28th day of March 2005, by the following vote of the City Council: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: City Clerk 023 AMENDED AND RESTATED FRANCHISE AGREEMENT BETWEEN THE CITY OF AZUSA AND ARAKELIAN ENTERPRISES, INC. FOR REFUSE COLLECTION, RECYCLING AND DISPOSAL SERVICES AMENDMENT NO. 7th This Seventh Amendment to the Exclusive Franchise Agreement is entered into this Twenty-eight day of March 2005 by and between the City of Azusa, a municipal corporation ("City") and Arakelian Enterprises, Inc., a California Corporation ("Contractor"). Effective April 1, 2005, the attached rate schedule shall replace Exhibit A of the Existing Exclusive Franchise Agreement approved on October 2, 2000. IN WITNESS WHEREOF, the parties have executed this Amendment No. 7 as of the date first set out herein. Date: CITY OF AZUSA A Municipal Corporation Cristina Cruz -Madrid, Mayor ATTEST: Vera Mendoza, City Clerk APPROVED AS TO FORM: Best Best & Krieger, LLP City Attorney Date: ARAKELIAN ENTERPRISES, INC. d.b.a. ATHENS SERVICES 0211 EXHIBIT A TO FRANCHISE AGREEMENT BETWEEN THE CITY OF AZUSA AND ARAKELLAN ENTERPRISES, INC. MRF entire waste stream except green waste and clean inerts; Per ton MRF rate: $52.89 on 1/1/2005, $53.79 on 7/1/2005, and $55.11 on 1/1/2006 Service Processing/ Disposal Fee Service Fee Franchise Fee Monthly All 939 Fee Monthly Rate or Total Single Family $9.26 $7.93 $1.91 $0.72 $19.82 Multifamily Bin $7.73 $6.92 $1.63 $0.64 $16.92 Commercial Bins 3 Cubic Yard I Day/Week $36.50 $47.92 $9.38 $3.53 $97.33 2 Days/Week $73.00 553.41 $14.04 $7.07 $147.52 3 Days/Week $109.51 $58.95 $18.72 $10.60 $197.78 4 Days/Week $146.01 $64.37 $23.37 $14.13 $247.88 5 Days/Week $182.51 $69.99 $28.05 $17.67 5298.22 2 Cubic Yard 1 Day/Week $24.33 $50.49 $8.31 $236 $85.49 2 Days/Week $48.67 $60.00 $12.07 $4.72 $125.46 3 Days/Week $73.00 $69.39 $15.82 $7.08 $165.29 4 Days/ Week $97.34 $79.54 $19.65 $9.44 $205.97 5 Days/Week $121.67 $88.75 $23.35 $11.78 $245.58 IS Cubic Yard 1 Day/Week $18.25 $38.79 $6.34 $1.76 $65.14 2 Days/Week $36.50 $59.34 $10.65 $3.52 S110.01 3 Days/Week $54.75 $79.35 $14.90 $5.28 $154.28 Saturday Service $36.50 $47.92 $9.38 $3.53 597.33 Locked Lid Bin Change Out Ongoing Service n/a n/a $51.53 $ 5.73 $5.73 50.64 n/a n/a $57.26 $ 6.37 Temp Bins $8.43 $77.31 $9.53 $0.81 $96.08 X-tra Dumps Same Day $843 $31.26 $4.41 $0.81 $44.91 Different Day $8.43 $48.45 $6.32 $0.81 $64.01 Commercial Barrels $7.72 $15.73 $2.61 $0.64 $26.70 Roll Otis Ton Based $199.38 Ton Based $6.84 Ton Based 025 Service Single Family (Trash 8 Green) Multifamily Bin Commercial Bins 3 Cubic Yard 1 Day/Week 2 Days/Week 3 Days/Week 4 Days/Week 5 Days/Week 2 Cubic Yard 1 Day/Week 2 Days(Week 3 Days/Week 4 Days/Week 5 DaysfWeek 1.5 Cubic Yard 1 Day/Week 2 Days/Week 3 Days/Week Saturday Service Locked Lid Bin Change Out Ongoing Service Temp Bins X-Tra Dumps Same Day Different Day Commercial Barrels Roll Offs C) N Adjustment Eff April 1 2005-ck-vl.xls / 7-MRFProjection (PRT 1) 3/22/20055:33 PM City of Azusa FY 2005-06 Refuse Rate Comparison Per Scheduled Puente Hills Landfill Rate Increases New New New New New New Processing/ Processing/ Semice SeMm Fee Not Net Franchise Franchise As 939 AB 939 Total Total % Disposal Fee Disposal Fee Fee Rate Rata Fee Fee Fee Fee Rate Rate Change 8.71 9.26 7.79 7.93 16.73 17.19 1,83 1.91 0.72 0.72 19.05 19.82 4.04% 6.91 7.73 6.80 6.92 13.91 14.65 1.52 1.63 0.64 0.64 15.87 16.92 6.60% 32.35 36.50 47.06 47.92 80.80 84.42 8.82 9.38 3.53 3.53 91.76 97.33 6.07% 64.69 73.00 52.46 53.41 118.70 126.41 13.01 14.04 7.07 7.07 137.23 147.52 7.50% 97.04 109.51 57.90 58.95 156.65 168.46 17.21 18.72 10.60 10.60 182.75 197.78 8.22 129.38 146.01 63.22 64.37 194.47 210.38 21.39 23.37 14.13 14.13 228.12 247.88 8.66% 161.73 182.51 68.74 69.99 232.50 252.50 25.60 28.05 17.67 17.67 273.74 298.22 8.94% 21.56 24.33 49.59 50.49 72.62 74.82 7.90 8.31 2.36 2.36 81.41 85.49 5.01% 43.13 48.67 58.93 60.00 103.80 108.67 11.34 12.07 4.72 4.72 118.12 125.46 6.22%- 64.69 73.00 68.15 69.39 134.66 142.39 14.75 15.82 7.08 7.08 154.67 165.29 6.87% 86.25 97.34 78.12 79.54 166.68 176.88 18.26 19.65 - 9.44 9.44 192.07 205.97 7.24% 107.82 121.67 87.16 88.75 197.56 210.42 21.66 23.38 11.78 11.78 228.42 245.58 7.51% 16.17 18.25 38.10 38.79 55.40 57.04 6.03 6.34 1.76 1.76 62.06 65.14 4,96% 32.35 36.50 58.28 59.34 92.36 95.84 10.07 10.65 3.52 3.52 104.22 110.01 5.55% 48.52 54.75 77,93 79.35 128.76 134.10 14.04 14.90 5.28 5.28 145.77 154.26 5.84% 32.35 36.50 47.06 47.92 80.80 84.42 8.82 9.36 3.53 3.53 91.76 97.33 6.07% 0.00 0.00 n/a n/a 50.61 51.53 52.11 51.53 5.62 5.72 n/a n/a 56.23 57.25 1.82°/ n/a n/a 5.63 5.73 5.80 5.73 0.63 0.64 n/a n/a 6.26 6.37 1.70% 7.47 8.43 75.93 77.31 85.65 85.74 9.26 9.53 0.81 0.81 93.47 96.08 2.79% 7.47 8.43 30.70 31.26 39.08 39.69 4.24 4.41 0.81 0.81 43.22 44.91 3.91% 7.47 8.43 47.58 48.45 56.46 56.88 6.11 6.32 0.81 0.81 61.97 64.01 3.29 6.91 7,73 15.45 15.73 22.82 23.46 2.48 2.61 0.64 0.64 25.48 26.71 4.81% Toe Basad Ton Bases 195.82 199.38 Ton eased Ton eased Ton Based Ton eased 6.84 6.84 Ton Based Ton Based Ton Bases C) N Adjustment Eff April 1 2005-ck-vl.xls / 7-MRFProjection (PRT 1) 3/22/20055:33 PM RF PROCESSING/DISPOSAL COST ADJUSTMENTS ffective Jan. 1, 2005, Puente Hills Landfill Rate Increase from $20.88fron to $22.65fron) ffective Jan. 1, 2006, Puente Hills Landfill Rate Increase from $22.65fron to $24.42/Ton) ireement Section 5.0 Adjustment Procedure RF PER TON RATE BREAKDOWN: SIDENTIAUCOMMERCIAL BARREL CUSTOMERS ticipated Tons/Costs for Apr 05 - Mar 06: Updated 3/22 2.50% MRF RATES Processing Cost Per Ton: Disposal Cost Per Ton: Per Ton Rate July 04 - Dec 04 Adj. Rate $35.90 $15.66 Jan 05- Jun 05 Adj. Rate $35.90 $16.99 July 05 - Dec 05 Adj. Rate $36.80 $16.99 Jan 06 - Mar 06 Adj. Rate $36.80 $18.32 $51.56 $52.89 $53.79 $55.11 SIDENTIAUCOMMERCIAL BARREL CUSTOMERS ticipated Tons/Costs for Apr 05 - Mar 06: Updated 3/22 Extension/ Tons Rate Amount Green Waste (tons Apr 05 - Mar 06) 3,335.02 $12.10 $40,353.74 MRF (tons Apr 05 - Jun 05) 3,710.90 $52.89 $196,260.22 MRF (tons Jul 05 - Dec 05) 7,376.83 $53.79 $396,762.80 MRF (tons Jan 06 - Mar 06) 3,612.21 $55.11 $199,077.92 Required Revenue for MRF/Disposal Costs: $832,454.69 Monthly Required Revenue: $69,371.22 Adjusted Average Monthly Customer Count: 7,580.38 Monthly Rate for MRF Processing/Disposal $9.15 (Credit)/Deficiency (based on Apr 04 - Jan 05) $0.11 New Monthly Rate for Apr 05 - Mar 06 $9.26 :SIDENTIAL BIN CUSTOMERS ticipated Disposal Costs Apr 05 thru Mar 06: Updated 3/22 Extension/ Tons Rate Amount MRF (tons Apr 05 - Jun 05) 2,455.72 $52.89 $129,876.89 MRF (tons Jul 05 - Dec 05) 4,990.02 $53.79 $268,388.23 MRF (tons Jan 06 - Mar 06) 2,540.76 $55.11. $140,027.64 Required Revenue for MRF/Disposal Costs: $538,292.75 Monthly Required Revenue: $44,857.73 Adjusted Average Monthly Customer Count: 6,055.76 Monthly Rate for MRF Processing/Disposal $7.41 (Credit)/Deficiency (based on Apr 04 - Jan 05) $0.32 New Monthly Rate for Apr 05 - Mar 06 $7.73 )MMERCIAL BIN CUSTOMERS ticipated Disposal Costs Apr 05 thru Mar 06: Updated 3/22 Extension/ Tons Rate Amount MRF (tons Apr 05 - Jun 05) 4,072.85 $52.89 $215,402.85 MRF (tons Jul 05 - Dec 05) 8,161.86 $53.79 $438,985.64 MRF (tons Jan 06 - Mar 06) 4,184.11 $55.11 $230,596.76 Required Revenue for MRF/Disposal Costs: $884,985.26 Monthly Required Revenue: $73,748.77 Average Monthly Cubic Yards of Service: 26,080 Monthly MRF Rate Per Cubic Yard of Service: $2.83 (Credit)/Deficiency (based on Apr 04 - Jan 05) ($0.02) New Monthly Rate for Apr 05 - Mar 06 $2.81 027 Note: Tonnage based on Actual Tons Disposed from Feb 04 - Jan 05 RESIDENTIAUCOMMERCIAL BARREL CUSTOMERS (Effective Jan. 1, 2005, Puente Hills Landfill Rate Increase from $20.88/Ton to $22.65/ron) MRF/DISPOSAL COSTS MRF APRIL MAY JUN JUL AUG SEP OCT NOV DEC JAN LANDFILL DIRECT HAUL None Total Tons Total Cost Year Barrel Tons Rate Cost 0.00 0.00 $0.00 0.00 $0.00 Updated 3/15/05 Updated 3/15/05 Revenue Total Revenues Year Barrel Tons Rate Cost 2004 1,287.75 50.76 65,366.19 2004 1,146.56 50.76 58,199.39 2004 1,276.59 50.76 64,799.71 2004 1,246.99 51.56 64,294.80 2004 1,231.10 51.56 63,475.52 2004 1,171.63 51.56 60,409.24 2004 1,179.82 51.56 60,831.52 2004 1,228.41 51.56 63,336.82 2004 1,318.88 51.56 68,001.45 2005 1,261.27 52.89 66.708.57 Total Tons Total Cost Year Barrel Tons Rate Cost 0.00 0.00 $0.00 0.00 $0.00 TOTALS MRF/DISPOSAL REVENUES Year APRIL 2004 MAY 2004 JUN 2004 JUL AUG SEP OCT NOV DEC JAN 2004 2004 2004 2004 2004 2004 2005 TOTAL MRF/DISPOSAL REVENUES Updated 3/15/05 Res Cust Count 7,580.7347 7,563.9041 7,583.1076 7,587.6030 7,592.9000 7,583.2333 7,579.9000 7,587.4333 7,570.0667 7.574.9667 (Credit)/Deficiency for Period (Credit)/Deficiency for Prior Adjustment (Eff 7!1%04) (Credit)/Deficiency for this Adjustment Average Monthly Customer Count (Credit)/Deficiency Per Customer/Month over 12 months 15,134.32 $666,061.73 Rate Com Cust Count Updated 3/15/05 Revenue Total Revenues 8.55 46 GREEN WASTE Year Green Tons Rate Cost APRIL 2004 347.93 11.00 $65,158.22 $3,827.23 MAY 2004 253.90 11.00 42 $2,792.90 JUN 2004 311.25 11.00 $66,333.27 $3,423.75 JUL 2004 286.63 11.00 41 $3,152.93 AUG 2004 312.80 11.00 $66,232.41 $3,440.80 SEP 2004 286.04 11.00 $3,146.44 OCT 2004 259.38 11.00 $2,853.18 NOV 2004 269.92 11.00 $2,969.12 DEC 2004 235.27 11.00 $2,587.97 JAN 2005 222.20 11.00 $2.444.20 TOTALS MRF/DISPOSAL REVENUES Year APRIL 2004 MAY 2004 JUN 2004 JUL AUG SEP OCT NOV DEC JAN 2004 2004 2004 2004 2004 2004 2005 TOTAL MRF/DISPOSAL REVENUES Updated 3/15/05 Res Cust Count 7,580.7347 7,563.9041 7,583.1076 7,587.6030 7,592.9000 7,583.2333 7,579.9000 7,587.4333 7,570.0667 7.574.9667 (Credit)/Deficiency for Period (Credit)/Deficiency for Prior Adjustment (Eff 7!1%04) (Credit)/Deficiency for this Adjustment Average Monthly Customer Count (Credit)/Deficiency Per Customer/Month over 12 months 15,134.32 $666,061.73 Rate Com Cust Count Rate Revenue Total Revenues 8.55 46 7.17 $65,145.10 8.55 45 7.17 $64,994.03 8.55 45 7.17 $65,158.22 8.71 43 6.91 $66,385.15 8.71 42 6.91 $66,424.38 8.71 41 6.91 $66,333.27 8.71 41 6.91 $66,304.24 8.71 41 6.91 $66,369.85 8.71 43 6.91 $66,232.41 8.71 41 6.91 $66,261.27 $659,607.93 $6,453.80 0 364 35,4 $9,818.15 7,580.38 $0.11 0281 RESIDENTIAL BIN CUSTOMERS MRF/DISPOSAL COSTS $5,841.42 Updated 3/15/05 $17,524.98 (Credit)tDeficiency for this Adjustment $23,366.40 Total Ten Month Customer Count MRF Year Bin Tons Rate Cost Total Tons Total Cost APR 2004 806.43 50.76 $40,934.39 2,455.72 16,493 MAY 2004 779.43 50.76 $39,563.87 4,990.02 7.17 JUN 2004 869.86 50.76 $44,154.09 2,540.76 5,938.3268 JUL 2004 824.58 51.56 $42,515.34 - 6,095.2203 $42,117.97 AUG 2004 850.71 51.56 $43,862.61 $42,208.69 OCT SEP 2004 798.51 51.56 $41,171.18 NOV 2004 OCT 2004 845.07 51.56 $43,571.81 _ 2004 16,584 NOV 2004 838.61 51.56 $43,238.73 16,584 6.91 DEC 2004 832.54 51.56 $42,925.76 7.17 0.0000 JAN 2005 888.98 52.89 $47,018.15 0.0000 $0.00 198,075 $423,114.51 FEB 2004 0.00 50.76 $0.00 MAR 2004 0.00 50.76 $0.00 8,334.72 $428,955.93 LANDFILL DIRECT HAUL Year Bin Tons Rate Cost None 0.00 0.00 $0.00 0.00 $0.00 GREEN WASTE Year Green Tons Rate Cost None 0.00 0.00 $0.00 0.00 $0.00 8,334.72 $428,955.93 TOTALS MRF/DISPOSAL REVENUES $5,841.42 Updated 3/15/05 $17,524.98 (Credit)tDeficiency for this Adjustment $23,366.40 Total Ten Month Customer Count Year Cubic Yards Rate Bin Gus Count Revenue Total Cu. Yd. Total Revenue APR 2004 16,428 7.17 6,082.5912 $43,612.18 MAY 2004 16,493 7.17 5,918.7294 $42,437.29 JUN 2004 16,480 7.17 5,926.2880 $42,491.48 JUL 2004 16,480 6.91 5,938.3268 $41,033.84 AUG 2004 16,493 6.91 6,095.2203 $42,117.97 SEP 2004 16,553 6.91 6,108.3487 $42,208.69 OCT 2004 16,566 6.91 6,116.5405 $42,265.29 NOV 2004 16,564 6.91 6,131.8869 $42,371.34 DEC 2004 16,584 6.91 6,119.5740 $42,286.26 JAN 2005 16,584 6.91 6,120.1400 $42,290.17 FEB 2004 16,415 7.17 0.0000 $0.00 MAR 2004 16,415 7.17 0.0000 $0.00 198,075 $423,114.51 TOTALS 60,557.6458 $423,114.51 (Credit)/Deficiency for Period $5,841.42 (Credit)/Deficiency for Prior Adjustment - (Eff. 7/1/04) $17,524.98 (Credit)tDeficiency for this Adjustment $23,366.40 Total Ten Month Customer Count 60,557.65 Average Monthly Customer Count 6,055.76 (Credit)/Deficiency Per Month/Customer (based on 12 Months) $0.32 029 COMMERCIAL BIN CUSTOMERS MRF/DISPOSAL COSTS Year Bin Tons Updated 3/22/05 Cost Total Tons Total Cost None MRF Year Bin Tons Rate Cost Total Tons Total Cost APRIL 2004 1,332.71 50.76 $67,648.36 None 4,072.85 MAY 2004 1,305.87 50.76 $66,285.96 8,161.86 JUN 2004 1,434.27 50.76 $72,803.55 $704,551.47 4,184.11 JUL 2004 1,355.37 51.56 $69,882.88 AUG 2004 1,422.11 51.56 $73,323.99 Revenue Total Cu. Yd. Total Revenue SEP 2004 1,332.23 51.56 $68,689.78 OCT 2004 1,378.93 51.56 $71,097.63 NOV 2004 1,352.94 51.56 $69,757.59 DEC 2004 1,320.28 51.56 $68,073.64 JAN 2005 1,421.89 52.89 $75,203.76 FEB 2004 0.00 50.76 $0.00 MAR 2004 0.00 50.76 $0.00 13.656.60 $702.767.13 LANDFILL DIRECT HAUL Year Bin Tons Rate Cost Total Tons Total Cost None 0.00 0.00 $0.00 0.00 $0.00 GREEN WASTE Year Green Tons Rate Cost Total Tons Total Cost None 0.00 0.00 $0.00 0.00 $0.00 Temporary Bin Dumps Bin Tons Rate Bin Cost Total Tons Total Cost Feb 04 - June 04 11.10 50.76 563.24 July 04 - Jan 05 23.68 51.56 1,221.09 34.78 1,784.34 TOTALS 13,656.60 $704,551.47 MRF/DISPOSAL REVENUES Updated 3/16/05 Year Cubic Yards Revenue Total Cu. Yd. Total Revenue APR 2004 26,356 $73,210.65 MAY 2004 26,741 $74,281.99 JUN 2004 26,175 $72,711.12 JUL 2004 26,418 $65,732.85 AUG 2004 26,587 $66,153.35 SEP 2004 26,516 $65,975.44 OCT 2004 25,675 $63,883.71 NOV 2004 25,524 $63,506.35 DEC 2004 25,296 $62,940.31 JAN 2005 25,365 $63,112.81 FEB 2004 26,178 $0.00 MAR 2004 26,132 $0.00 312,963 $671,508.58 Temporary Bin Dumps Bin Count Rate Revenue Total Bin Total Revenue Feb 04 - June 04 67 8.34 $558.78 July 04 - Jan 05 143 7.47 $1,068.21 210 $1,626.99 TOTALS $673,135.57 (Credit)/Deficiency for Period $31,415.90 (Credit)/Deficiency Prior Adjustment (Eff. 7/1/04) ($36,142.20) (Credit)/Deficiency This Adjustment ($4,726.30) Total Annual Cubic Yards of Service 312,963.00 (Credit)/Deficiency Per Cubic Yard ($0.02) 030 Commercial Bin Service Revenue Year 2004 2004 2004 1.5 CY Bin Count X's Week Apr Rate Revenue May Rate Revenue June Rate Revenue 1 106 18.06 $1,914.36 110 18.06 $1,986.60 111 18.06 $2,004.66 2 1 36.11 $36.11 1 36.11 $36.11 1 36.11 $36.11 3 0 54.17 $0.00 0 54.17 $0.00 0 54.17 $0.00 4 1 72.23 $72.23 1 72.23 $72.23 1 72.23 $72.23 5 0 90.29 $0.00 0 90.29 $0.00 0 90.29 $0.00 6 0 108.35 $0.00 0 108.35 $0.00 0 108.35 $0.00 2.0 CY Bin $73,210.65 856 $74,281.99 849 $72,711.12 X's Week 1 28 24.07 $673.96 26 24.07 $625.62 26 24.07 - $625.82 2 5 48.15 $240.75 5 48.15 $240.75 5 48.15 $240.75 3 0 72.22 $0.00 0 72.22 $0.00 0 72.22 $0.00 4 0 96.30 $0.00 0 96.30 $0.00 0 96.30 $0.00 5 0 120.37 $0.00 0 120.37 $0.00 0 120.37 $0.00 6 0 144.44 $0.00 0 144.44 $0.00 0 144.44 $0.00 3.0 CY Bin X's Week 1 237 36.11 $8,558.07 236 36.11 $8,521.96 235 36.11 $8,485.85 2 151 72.22 $10,905.22 154 72.22 $11,121.88 156 72.22 $11,266.32 3 92 108.34 $9,967.28 93 108.34 $10,075.62 94 108.34 $10,183.96 4 37 144.45 $5,344.65 37 144.45 $5,344.65 37 144.45 $5,344.65 5 151 180.56 $27,264.56 154 180.56 $27,806.24 144 180.56 $26,000.64 6 38 216.67 $8,233.46 39 216.67 $8,450.13 39 216.67 $8,450.13 Total 847 $73,210.65 856 $74,281.99 849 $72,711.12 Adjustment Eff April 1 2005ck-vt.xls / 2-CommeinCnt (PRT 6) -OK 1/4 323/20057:32 AM 031 Commercial Bin Service Revenue 2004 32.35 2004 230 32.35 2004 232 32.35 July Rate Revenue Aug Rate Revenue Sept Rate Revenue 113 16.17 $1,827.21 113 16.17 $1,827.21 112 16.17 $1,811.04 1 32.35 $32.35 1 32.35 $32.35 1 32.35 $32.35 0 48.52 $0.00 0 48.52 $0.00 0 48.52 $0.00 1 64.69 $64.69 1 64.69 $64.69 1 64.69 $64.69 0 80.86 $0.00 0 80.86 $0.00 0 80.86 $0.00 0 97.03 $0.00 0 97.03 $0.00 0 97.03 $0.00 25 21.56 $539.00 25 21.56 $539.00 25 21.56 $539.00 6 43.13 $258.78 6 43.13 $258.78 6 43.13 $258.78 0 .64.69 $0.00 0 64.69 $0.00 0 64.69 $0.00 0 86.25 $0.00 0 86.25 $0.00 0 86.25 $0.00 0 107.82 $0.00 0 107.82 $0.00 0 107.82 $0.00 0 129.38 $0.00 0 129.38 $0.00 0 129.38 $0.00 232 32.35 $7,505.20 230 32.35 $7,440.50 232 32.35 $7,505.20 158 64.69 $10,221.02 155 64.69 $10,026.95 154 64.69 $9,962.26 96 97.04 $9,315.84 96 97.04 $9,315.84 96 97.04 $9,315.84 37 129.38 $4,787.06 36 - 129.38 $4,657.68 41 129.38 $5,304.58 146 161.73 $23,612.56 151 161.73 $24,421.23 146 161.73 $23,612.58 39 194.08 $7,569.12 39 194.08 $7,569.12 39 194.08 $7,569.12 erw crr Adjustment EH Apel 1 2005- k -O xis / 2-CommBinCnt (PRT 6)-0K 2/4 9/2=0057:32 AM 032 2004 2004 Commercial Bin Service Revenue 2004 Oct Rate Revenue Nov Rate Revenue Dec Rate Revenue 112 16.17 $1,811.04 112 16.17 $1,811.04 111 16.17 $1,794.87 1 32.35 $32.35 1 32.35 $32.35 1 32.35 $32.35 0 48.52 $0.00 0 48.52 $0.00 0 48.52 $0.00 1 64.69 $64.69 1 64.69 $64.69 1 64.69 $64.69 0 80.86 $0.00 0 80.86 $0.00 0 80.86 $0.00 0 97.03 $0.00 0 97.03 $0.00 0 97.03 $0.00 26 21.56 $560.56 28 21.56 $603.68 28 21.56 $603.68 5 43.13 $215.65 5 43.13 $215.65 5 43.13 $215.65 - 0 64.69 $0.00 0 64.69 $0.00 0 64.69 $0.00 0 86.25 $0.00 0 86.25 $0.00 0 86.25 $0.00 0 107.82 $0.00 0 107.82 $0.00 0 107.82 $0.00 0 129.38 $0.00 0 129.38 $0.00 0 129.38 $0.00 228 32.35 $7,375.80 232 32.35 $7,505.20 232 32.35 $7,505.20 154 64.69 $9,962.26 151 64.69 $9,768.19 149 64.69 $9,638.81 96 97.04 $9,315.84 98 97.04 $9,509.92 - 100 97.04 $9,704.00 41 129.38 $5,304.58 41 129.38 $5,304.58 40 129.38 $5,175.20 134 161.73 $211671.82 133 161.73 $21,510.09 130 161.73 $21,024.90 39 194.08 $7,569.12 37 194.08 $7,180.96 37 194.08 $7,180.96 837 $63,883.71 839 _ $63,506.35 834 $62,940.31 Adjustment Efl April 1 2005 k-O.As /2-CommBinQnt (PRT 6)-0K 314 3/23/20057:32 AM 033 III 2005 Jan Rate Revenue 109 16.17 $1,762.53 1 32.35 $32.35 0 -48.52 $0.00 1 64.69 $64.69 0 80.86 $0.00 0 97.03 $0.00 Commercial Bin Service Revenue 2004 Feb Rate Revenue 104 18.06 $1,878.24 1 36.11 $36.11 0 54.17 $0.00 1 72.23 $72.23 0 90.29 $0.00 0 108.35 $0.00 2004 Mar Rate Revenue 105 18.06 $1,896.30 1 36.11 $36.11 0 54.17 $0.00 1 72.23 $72.23 0 90.29 $0.00 0 108.35 $0.00 Updated 3/15/05 Revenue Customer Count Total Total 1,318.00 12.00 0.00 12.00 0.00 0.00 27 21.56 $582.12 27 24.07 $649.89 27 24.07 $649.89 318.00 5 43.13 $215.65 5 48.15 $240.75 5 48.15 $240.75 63.00 0 64.69 $0.00 0 72.22 $0.00 0 72.22 $0.00 0.00 0 86.25 $0.00 0 96.30 $0.00 0 96.30 $0.00 0.00 0 107.82 $0.00 0 120.37 $0.00 0 120.37 $0.00 0.00 0 129.38 $0.00 0 144.44 $0.00 0 144.44 $0.00 0.00 233 32.35 $7,537.55 236 36.11 $8,521.96 236 36.11 $8,521.96 2,799.00 154 64.69 $9,962.26 153 72.22 $11,049.66 150 72.22 $10,833.00 1,839.00 96 97.04 $9,315.84 87 108.34 $9,425.58 91 108.34 $9,858.94 1,135.00 41 129.38 $5,304.58 41 144.45 $5,922.45 37 144.45 $5,344.65 466.00 132 161.73 $21,348.36 149 180.56 $26,903.44 149 180.56 $26,903.44 1,719.00 36 194.08 $6,986.88 37 216.67 $8,016.79 38 216.67 $8,233.46 457.00 835 $63,112.81 0 $0.00 0 $0.00 $671,508.58 8,457.00 Adjustment EN Apni 1 2005ck-vl.xIs / 2-CommBinCnt (PRT 6)-0K 4/4 3/23/20057:32 AM 031 AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES / DATE: MARCH 28, 2005 SUBJECT: LEASE OF CITY PROPERTY AT THE HECK RESERVOIR SITE ON SAN GABRIEL CANYON ROAD TO VERIZON FOR WIRELESS FACILITIES RECOMMENDATION It is recommended that the Utility Board/City Council approve of a lease to Verizon Wireless for a portion of property at the Canyon Filtration Plant Heck Reservoir site in amount of $1,995 per month, and authorize City Manager to sign execution agreement version as approved by City Attorney. BACKGROUND This is a continued item from February 2005 Utility Board meeting, at which the Utility Board rejected the proposed lease amount of $1,500 per month with Verizon for a 250 square foot area of land located near the Heck Reservoir, which is located at the northwest corner of San Gabriel Canyon Road and Azusa San Gabriel Canyon Road, the site of Azusa Light & Water's (ALW's) Canyon Water Filtration Treatment Plant. Verizon requested the lease so that they may install an unmanned telecommunications facility that will provide wireless service to, among others, the Mountain Cove (MC) subdivision in San Gabriel Canyon. To date, wireless reception in MC is difficult if not completely unavailable. The wireless antenna to be erected on the site has been approved by the Planning Department and will consist of a 52 foot high monopole disguised as a pine tree, and a walled in area containing switchgear and emergency generator. Verizon will also place three mature pine trees on the site at locations to be determined by ALW staff. Staff renegotiated the lease amount at the direction of the Utility Board at its last meeting, and Verizon agreed to increase their initial monthly payments to $1,995 per month. The initial term of the lease would be ten years with automatic options to renew for two additional five year terms. FISCAL IMPACT This action will add rent payments of $1,995 per month to the Water Fund for the first year with a 3% annual escalator for the future. Prepared by: Chet F. Anderson, P.E., Assistant Director- Water Operations 035 a MGIA JGAO JOafOJd 1994S qluE)i 'M OZO L 109,fOJd uoiJenoua� pJeA Al!o + .. Purpose of the Project • 2001- Provide for needed office space, at the city yard and city hall • The new building at the Angeleno Yard allows for the electric division relocation, freeing up the existing 2600 sq. ft. building • City engineering to relocate from City Hall to former electric building Building Sites • 2001- City Yard 809 N. Angeleno Ave., proposed building 5,430 sq. ft. over existing car port • 2002- Transportation site @ Tenth Street & Vernon Ave., 10,970 sq. ft. new building • 2003- Former Metro Steel Building @ 1020 W. Tenth Street, purchased March 24, 2003, price $112507000 Project Mile Stones • June 2003 - Meeting with Architect Henry Woo to refurbish existing 28,175 sq. ft. building • December 2004 - Council & Planning review conceptual building design • April 2004 - Utility Board Approves specifications for the project • June 2004 - Only one bid received for the project Project miles Stone -Continued • October 2004 - Project re -bided and awarded to Abeam Construction for $1,567,500 • Construction schedule November 30, 2004 to May 8, 2005 (160days)� �— • April — Review construction schedule, due to change orders and some rain delays. 1. Z`t INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES,--, A/ DATE: MARCH 28, 2005 SUBJECT: MONTHLY UPDATE --ELECTRIC YARD OFFICE RENOVATION PROJECT Attached Gantt chart is provided as detailed task list update of electric yard renovation project. Prepared by: Dave Ramirez, Assistant Director -Electric Operations 9 Work Schedule as of 228A05.npp 036 4Vlb INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES T� DATE: MARCH 28, 2005 6J SUBJECT: UPDATE ON SYSTEMS &SOFTWARE CUSTOMER INFORMATION SYSTEM This is a project update of an item the Utility Board approved at the June 28, 2004, meeting for a new Customer Information System and Interactive Voice Response System to be purchased from third -party vendor, Systems &Software. Work Completed • S&S and Azusa finalized the enQuesta training plan. Introductory enQuesta training was completed in early March for Customer Service staff and several other employees throughout Light & Water. Those remaining to be trained will be trained by City staff using the train -the -trainer model. Azusa successfully re -programmed the data extraction routines. Instead of taking a number of days, the process now only takes a few hours. S&S provided Azusa with a Spanish Interactive Voice Response script for their review. Azusa edited it and submitted it for production. S&S sent Azusa a revised BPA document for final review. Work in Progress • S&S and Azusa are wonting to verify the data conversion mapping. S&S has initiated development of the data conversion programming. Certain concerns with the data mapping and data conversion process were analyzed and summarized by S&S, then presented to Azusa for discussion. S&S is making good progress on programming the TOU capability for Azusa's use. The Interactive Voice Response (IVR) is in the process of being programmed. Work Delayed • The Business Requirements Phase was intentionally delayed from the original schedule so that S&S could focus on gathering TOU requirements early in the project. This change will not negatively effect to the project. Issues and Concems • S&S has a growing concern regarding data mapping and data conversion issues. The concerns are being reviewed and solutions evaluated. Prepared by: Karen Vanca, Assistant Director Customer Care & Solutions 039 Kilont-C Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update • Preliminary FY03-04 Light Fund Operating Result no Status of Projects • Winding down the Kirkwall cost audit work. Will commence discussions with Edison shortly to resolve audit exceptions (if any) in April • Economic analysis of Banning's local generation project has been completed. Evaluation under way to determine whether to proceed further with an engineering feasibility study. Continue to work with Colton with respect to its local generation project • Continued the participation in the California Independent System Operator's (CAISO) amendment #60 settlement process • Substantially ramped up the involvement in the CAISO electric market redesign process which is targeted to go live in February 2007. The redesign will substantially impact the way we do business in the electric wholesale markets • Commenced coverage of retail service issues related to Montarra development. Discussions with Edison are ongoing • Exploring with third parties regarding electric power exchange opportunities for San Juan resource and summer peaking resources in the next three to five years _041 _ AIL_ CITY OF AZUSA ENERGY CONSUMPTION COMPARISON.. - ' 564 _ 122% ....... AUG .. ,_. ]JERGY LOn BIf ffTKKJ IN WH PE_RCEM (} NDNTH FV03-06.. -I— fI_ FY 04 .05 CHANGE _.. JUL 26.154 15.37Y AUG 26,714 _ -0.64% 25,342 514% SEP 24,354 ... 25273 353% �_...... OCT 23,ffi7 .... _.— _... ..._ �__ 27561 _ ___ _�__ .. ... .-7.69%.. _... _..g .. NOV 19,4 -6.27% 19,813 _ .,, ,... .: _ 2.18% I DEC 060?/_ JAW" 18911 20.127 109% FEB JUN I MNi 21,338_ APR 20417 PEAK DEMAND fNMW `_____...... .. MAY j 29 493. Surpassing all-time high for peak of 58.1 MIN established on September 1, 1998. .. JLN 22.505 TOTAL 255,718 77fi 139 _ 103% CRY OF A2USA PEAK DEMAND COMPARISON PERCENT ------ 042 AUL 557 564 _ 122% ....... AUG .. ,_. ". SEP 591... ..�.._. _.. ,.__.._. 58.2,_._._._. ... _ ..___ CCT _.. 532 450 15.37Y 368 366 A _ -0.64% 351 357 ... .._. JAN -. ... 346 .. -.._356 2.63Y FEB 357 _ 335 -6.27% fv1AR_ .._ . I 439 APR _ JUN I 474 PEAK DEMAND fNMW `_____...... L .__.__.._ ..._........ __._....._ Surpassing all-time high for peak of 58.1 MIN established on September 1, 1998. 042 0 :ICITY SPOT MARKET PRICES IN CALIFORNI/ APR 04 _ MAY 04 -$5126 $50.76_..... . . .IUL 04 ; $59.12 . AUG 04 SEP 04 OCT 04 ( ,$4077 $45.68 .. _ . _.. _ _. NOV 04 I _ DEC 04 ( .$50:5 _. . $54.52 JAN 05 ]I $47.80 .. _ FEB 05 ALLPRICES_INW44-_, __...... ..__.,___. _..___.. 043 Power Resource Cost Accounting Uv >nn nc> __ ,4,4-01 ., ._Ba3.8>252 .,_.._1 JBB 00624 21327536, .... 29.14240 33,49331 3.001,48]86 (1$8,445895) , Sep -M 952,45517 15)4.82828 21012543 Bta585 3J 4399] 2.)80,89200 - (1,32�1Jfi ]7)-1,451,B16A3 -OdOa 91269352 1,(10042477—199y15b8 — 18,— 30,]6)-06 2267,61001 Ieefi 6153]1 1,3)0,961.61 -Nw06 _1 252 512 40 7061988.9 19519699 _ B1J535 2),]9050` 2269,4]213 (86254]61) 1,427.32452 -Dacdb 83923240 ]8820228 -- 21T2B350- 12J4B3 2�,18340� 1,80028819(06623193) TAtdp5156 Jd�WS ---891])640 9106%43 - 312699AJ — 20,40000 24954.98 215991666 (IA5145700) IJM459b6 Feb05 .. BB43i1340 8]0,91323 195]0500 20,40000 24,95565 2001S1T 2B (881,86]75) 1,012,60953 04 4 (2) INCLUDES PLL SFIORiTEfiM PURCII/SES FOR MEDGINGPND LCYD BPIANCING RIRPO6ES _._^, _ 13) INCLUDES PLL SHORTTEAM... LONGTRPNSM CONIR/CL COSTS.. ..... .... ... .__. ... .._. _.. S_Y9TFMREUPBILRV FUNLTIONB .. ... _ (1) COSTS OFIMC£D 9YCh1iaRNWINDBEN...... STEM.OPERATCH FCO } (5) INCLlAES COSiB FOR. C MW= MDDIWA7DN� C6RIplY �IB) SUMOF (1)THRIX1Ca11 (5) _ .. ._ (71 NAIOLFSNF REVENUES CEFlIYFD PRO{M Sq.ES OFE#£6S PCNA'rEA PTO BENEFRS .._ ------ _ .. .._ 04 4 K`,w, D Legislative & Regulatory Update Prepared by Bob Tang March 28, 2005 045 California Public Utilities Commission (CPUC) Resource .;Adequacy Requirement (RAR) • CPUC recently clarifies that RAR will be applicable on a year- round basis and based on monthly peak demand, i.e., 15%- 17% additional power resource above the monthly peak demand for all hours of the month • CPUC acknowledges that such "ALL HOUR" may be too costly to implement and without any incremental reliability benefit • CPUC deferred the implementation of the RAR to the California Independent System Operator (CAISO) in CAISO's market redesign process • CPUC is confident that CAISO will implement sensible market rules to avoid costly resource procurement to achieve RAR K California Independent System 9. Operator's (CAISO) Market Redesign • CAISO released the final conceptual market redesign elements in late February for additional stakeholders input and comment • The market redesign will re-create a spot wholesale market in California based on a Locational Market Pricing (LMP) concept widely used in the Eastern U.S. market • CAISO intends to file conceptual design with the Federal Energy Regulatory Commission (FERC) in mid April and detailed Tariff language later this year • CAISO still intends to introduce the new market by no later than February 2007 • The market redesign will have profound implications to the way we conduct electric business in the wholesale markets and is likely to result in additional operational burdens to the City 41 04", AZUSA w..., INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE-�-�� DATE: MARCH 28, 2005 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 ratepayers with cost savings that are realized when our power plant operates reliably and replacement power cost 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 December 16, 2004 through March 15, 2005. The proposed adjustment will be applied for the billing period of April 1, 2005 through June 30, 2005. The adjustment amount is a CREDIT of 0.20 cents/ICWh or a DECREASE of about 2.0% in the average retail electric rate as shown in the attachment. The Fuel Cost Adjustment decreased from a charge of 0.21 cents/kWh in the first quarter of 2005 to a credit of 0.20 cents/kWh credit in the second quarter of 2005 and reflects the improved performance of the San Juan unit 3 during the period of December 16, 2004 through March 15, 2005. To the average residential customer, this equates to a savings of about $1 per month for the months of April through June 2005. Because a mechanism of crediting amounts to customers is not available at this time due to the implementation of the new customer billing system, the credit balance of $129,324 as computed in Exhibit A will be carried forward to offset any under recoveries in the coming months or until a crediting mechanism becomes fully functional, whichever occurs first. Prepared by: Bob Tang, Assistant Director of Resource Management Attachment: Itm� SJ FCA Q2_05.x1s 048- . San Juan Fuel Cost Adjustment Calculation for 02 2005 Cumulative Quarterly Difference (CQD) 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 Q2 2005 (cents/KWh) (*) Through March 15th, 2005 April May 20,500 22,485 -0_20 -$129,324 -$129,324 June 22,407 Dec 16 -Jan Feb Mar (*) Actual SJ Output 31,826 18,346 10,268 Actual SJ Replac Energy Cost $93,796 $83,046 $25,134 Maximum Output 33,840 20,160 10,800 Unavailable SJ Output 2,014 1,814 532 % Outage Rate 5.95% 9.00% 4.93% Base SJ Output @ 85% 28,764 17,136 9,180 Unavailable SJ Output 5,076 3,024 1,620 % Outage Rate 15.00% 15.00% 15.00% Base SJ Replac Energy Cost Q$40/MWh $203,040 $120,960 $64,800 Actual - Base SJ Replac Energy Cost -$109,244 -$37,914 -$39,666 s San Juan Insurance Premium Recovery $19,167 $19,167 $19,167 San Juan Insurance Payout $0 $0 $0 Cumulative Quarterly Difference (CQD) 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 Q2 2005 (cents/KWh) (*) Through March 15th, 2005 April May 20,500 22,485 -0_20 -$129,324 -$129,324 June 22,407