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Home My WebLink AboutAgenda Packet - Decembe 18, 2006 - UBAGENDA SPECIAL MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA AUDITORIUM MONDAY, DECEMBER 18, 2006 213 EAST FOOTHILL BOULEVARD IMMEDIATELY FOLLOWING AZUSA, CA 91702 CITY COUNCIL MEETING AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON DAVE HARDISON JOSEPH R. ROCHA VICE CHAIRPERSON BOARD MEMBER KEITH HANKS ANGEL A. CARRILLO BOARD MEMBER BOARD MEMBER 8:00 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call A. PUBLIC PARTICIPATION (Person/Group shall be allowed to speak without Interruption up to five (5) minutes maximum time, subject to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker's questions or comments shall be handled after the speaker has completed his/her comments. Public Participation will be 11mited to s/xty (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 individually, it will be considered under SPECIAL GILL ITEMS. 001 B. CONSENT CALENDAR l/ ll� / I . Minutes. Recommendation: Approve minutes of regular meeting of November 27, 2006 as written. E B-1. UB Nov Minutes.doc 2. Rehabilitation of Water Weils No. 2 and No. 4. Recommendation: Approve plans and specifications and authorize advertising of bids for the rehabilitation of Water Wells No. 2 and No. 4. Eli B-2. Wets Rehab eid.doc 3. Purchase of Automated Meter Reading (AMR) Water Retdsters and Transmitters for Rosedale Development. Recommendation: Approve purchase of 1,250 AMR water registers and transmitter modules and approve sole source purchase from Badger Meter, Inc. in amount of $156,962.50. B-3. AMR Meter Purchase.doc 4. Amendment to License Agreement with Northrop Grumman for Temporary 12 -Inch Waterline. Recommendation: Approve of License Agreement Amendment with Northrop Grumman subject to final approval by legal counsel and city staff of nonmaterial changes. J B-4. NorthropAgntArrd.D( C. STAFF REPORTS/COMMUNICATIONS Monthly Power Resources Update _6 -CO -91 � 1 c-1. MoN Pwr Res Update.ppt ��"" � Quarterly Fuel Cost Adjustment for San Juan Resource /W C-2. San Juan FCA.DOC n' 002 VV D. DIRECTOR'S COMMENTS E. ADIOURNMENi Adjournment. %n compliance with the Americans with Disabilities Act, ifyou need special assistance to participate in a city meeting, please contact the City Clerk at 626-812-5219. 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." 003 CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD MONDAY, NOVEMBER 27, 2006 - 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 Conference Room located at 729 N. Azusa Avenue, California. Chairperson Chagnon called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: BOARDMEMBERS: HARDISON, CARRILLO,CHAGNON ABSENT: BOARDMEMBERS: HANKS, ROCHA (Hanks and Rocha entered the meeting at 6:32 and 6:33 p.m. consecutively) ALSO PRESENT: Also Present City Attorney Ferre, City Manager Delach, Director of Utilities Hsu, Assistant City Manager Person, Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Police Captain Streets, Director of Recreation and Family Services Jacobs, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part None None The CONSENT CALENDAR consisting of items B- I through B-9 was approved by motion of Board Consent Cal Member Carrillo, seconded by Chairperson Chagnon unanimously* carried. approved The Minutes of the regular meeting of October 23, 2006, were approved as written. Min appvd 2. Approval was given to award contract for consultant construction management services Black& Veatch for Membrane Treatment Upgrade and Expansion of Canyon Filtration Plant to Black and Construction Veatch Engineering in amount not -to -exceed $1,147,000. Management 3. Approval was given to award base contract for the sale and purchase of natural gas with Sale & Purch Coral Energy Resources and authorize the Mayor to execute contract. Natural gas Coral Energy 1 4. Approval was given for the work order for installation of California Independent System Install CAISO Operator (CAISO) certified meter at San Gabriel Valley Municipal Water District (SGVMWD) meter small hydro facility in amount not -to -exceed $11,200. SGVMWD 5. The following Resolution was adopted for the acceptance of Grant of Easement from Dhammakaya International Meditation Center: A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Res. 06-C109 ACCEPTING A CERTAIN GRANT OF EASEMENT AND DIRECTING THE SAME BE NOTARIZED. Accept Esmt 6. Authorization was given to Azusa Light & Water to enter into agreement with 2TurnitOn, Inc. Agreement for customers to sign-up for utility services over a secure website at no cost to the City or w/2TumltOn, resident. Inc. 7. The following Resolution to Discontinue Level Pay Plan was adopted as follows: A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Res. 06 -Cl 10 AMENDING THE RULES AND REGULATIONS GOVERNING THE ELECTRIC AND WATER Discontinue SERVICE SUPPLIED BY AZUSA LIGHT 8- WATER. Level Pay Plan 8. Authorization was given for a payment of $22,208 from Water Fund for Water Division's Pymt Wtr share of cost to install a concrete service road in Northside Park to permit access to Well Fnd install #6. Svs Rd Well 6 9. Approval was given for the Southern California Public Power Authority's (SCPPA) Renewable SCPPA Green Energy Resources Development Agreement for the purpose of participating in Green Path Path North North Transmission Project and authorize the Mayor to execute agreement. Trans Project Special Call Items None. Scheduled Items None. Staff Reports/Communications Spec Call Itms None Sched Items None Staff Rpts The Power Resources Monthly Update was presented and was received and filed and not Power discussed. Resources Director of Utilities Hsu presented the FY 2006-2007 Work Plan Update. Chairperson Chagnon Work Plan commented that there is a need to paint the fence at the Transit Yard. Update It was consensus of the Board members that the Utility Board Meeting of December be held on Next UB Mtg December 18'h, immediately following the regular meeting of the City Council. 12/18 Board Member Hanks entered the Utility Board Meeting at 6:32 p.m. Director's Comments Hanks ent Dir Cmts Moved by Board Member Hardison, seconded by Board Member Carrillo and unanimously* Cert of Rec carried to approve the issuance of certificates of recognition to two Azusa Pacific University 2 APU students, students 11/27/06 PAGE TWO 005 Board Member Rocha entered the Utility Board Meeting at 6:33 p.m. Rocha ent The Utility Board recessed at 6:33 p.m. The Utility Board reconvened 6:52 p.m. Meeting Closed Session Closed Sess It was consensus of the Board Members to recess to Closed Session at 6:53 p.m., to discuss the Recess following: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Conf w/legal Government Code Section 54956.9(a) Cnsl SDG&E SDG&E v. Anaheim, Azusa, et al. v. Anaheim, Case 2:06 -CV -00592 Azusa CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Conf w/legal Government Code Section 54956.9(a) Cnsl PG&E, PG&E, SCE et al. v. Anaheim, Azusa, et al. SCE et al. v. Case 2:06-CV00559 Anaheim, Azusa, et al The Utility Board Member reconvened from Closed Session at 7:08 p.m., there was no reportable Reconvened action taken. No Reports It was consensus of the Board Members to adjourn. Adjourn TIME OF ADJOURNMENT 7:09 P.M. SECRETARY Next Resolution No. 06-C111. . indicates Hanks and/or Rocha absent. (It was later noted that clock in the meeting room was slightly ahead of time) 11/27/06 PAGE THREE CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA CITY COUNCIL AND AZUSA UTILITY BOARD FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES q�%%lC Fc -T2" DATE: DECEMBER 18, 2006 SUBJECT: REHABILITATION OF WATER WELLS NO. 2 AND NO. 4 RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve of the plans and specifications and authorize advertising of Bids for the Rehabilitation of Water Wells No. 2 and No. 4. BACKGROUND Water Well No. 2, constructed in 1921 and located at the Spreading Ground Wellfield, is the Water Division's largest producing well when it is running. Well No. 2 needs rehabilitation to assure continued service and to increase its production capacity. Specifically, a large cavern around and at the bottom of the casing needs to be filled, and the well requires relining. Once the new lining and gravel pack are installed, Well No. 2 will require redevelopment. Well No. 4, also located at the Spreading Grounds, was constructed in 1914 and is of the same construction as Well No. 2. Although Well No. 4 does not have a cavern at the bottom of its casing, Well No. 4 is also in need of rehabilitation to extend its useful life and production capacity. Bid specifications have been developed to accomplish the rehabilitation work for both wells and are available for public review at the second floor office at 729 N. Azusa Avenue, Azusa, California, 91702. FISCAL IMPACT Approval to let this project out to bid has a minimal fiscal impact for the cost of duplicating and distributing bid packages. Fiscal impact of the project will be provided when the low bid contractor has been determined and the Board is asked to approve a contract with the low bidder. Prepared by: Chet F. Anderson, P.E., Assistant Director- Water Operations 097 01 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: DECEMBER 18, 2006 SUBJECT: PURCHASE OF AUTOMATED METER READING (AMR) WATER REGISTERS AND TRANSMITTERS FOR THE ROSEDALE DEVELOPMENT RECOMMENDATION It is recommended that the Azusa Utility Board/City Council: (1) approve the purchase of 1,250 automated meter reading water meter registers and transmitter modules; and (2) approve sole source purchase from Badger Meter, Inc. in the amount of $156,962.50. BACKGROUND For the past five years, Azusa Light & Water's automated meter reading ("AMR") strategy has been to replace electric meters with AMR meters in hard -to -read locations and for new construction so they can be read remotely. Currently, one-tenth of all the residential electric meters in Azusa's service territory are now read using AMR. In early 2005, the Utility Board authorized staff to engage EMA, Inc., a consulting firm, to conduct a comprehensive water and electric meter reading strategy study. Consultant expertise was highly desirable in the area of AMR due to the wide variety of technologies available and the constant changes we have seen in the last several years. EMA, Inc. used a ten-year return -on -investment or "ROI" analysis in their evaluation of AMR deployment options. Staff generally feels that breaking even or realizing a small ROI in ten years or less is acceptable. EMA's findings were: Installation of an electric only AMR system using an Itron fixed network for reading usage data achieves a simple payback in nine years of 5 percent return -on -investment. This is using a standard, off-the-shelf product. 2. Installation of AMR for both electric and water meters inside the City using an Itron fixed network for reading usage data achieves a payback in ten years of 1 percent return -on -investment. Page 2: Utility Board Agenda — Water AMR Purchase Further, EMA, Inc. made two primary recommendations: For water meters located outside of the City of Azusa, but within Azusa Light & Water's service territory, initiate a formal meter replacement program to replace old water meters over a five-year period. Most of these 15,300 water meters are old and hard to read. For the most part, these meters range in age from 25-40 years. As they age, meter registers slow down, causing under billings. 2. Install AMR water and electric meters within the City of Azusa. Azusa Light & Water delayed consideration of this second recommendation until it was clear that the 2005 Federal Energy policy Act would not adversely affect our strategy. Currently, staff believes using AMR for both water and electric meters is a more efficient meter reading process and has a number of advantages for both customers and the Utility. Advantages of AMR meters to the customer include being able to read meters on demand, elimination of billing estimates, tracking and logging misreads, offering billing date flexibility, and tracking customer energy consumption in a timely manner and providing this information to customers as an incentive to use cost-effective measures to reduce their utility bills. Advantages for the utility include alarm notification for loss of power, thwarting theft by detecting meter removal or tampering, efficiencies based on current and future demand/growth, and enabling Azusa Light & Water to timely track customer consumption patterns and design cost-effective load management programs. These services can be implemented soon after AMR deployment. In regard to reading meters, Azusa is currently using "Itron" handheld meter reading devices which operate over an unlicensed radio frequency. These devices will be used to read new electric meters installed at the Rosedale development. Azusa would continue to read AMR meters in other locations by walking and reading a few over telephone lines, until such time when enough AMR meters are deployed to make drive-by reading cost effective. As part of our broad installation strategy, AMR water and electric meters would be installed for new customers coming online, such as the Rosedale development. Electric AMR meters are already in the budget and have been purchased to replace hard -to -read meters, and will continue to be made available for the Rosedale development. Badger is the water meter brand that is used exclusively by the Water Division. Badger, Inc. has developed and tested AMR meter registers and radio transmitter modules to insure they are compatible with Azusa Light & Water's electric AMR system, billing system and Itron meter reading devices. Badger AMR meters can be purchased from the factory at a lower cost than from retail vendors, and so it is our intent to purchase Badger AMR meter registers and transmitter modules directly from the factory. For Rosedale, the developer is required to purchase standard Badger water meters. To make these meters AMR -compatible, Azusa Light & Water needs to bear the cost of purchasing a register and a module for each water meter to automate reads. The cost for the AMR register and transmitter for one meter is $125.57, including sales tax, for a total of $156,962.50 for Rosedale. Ongoing maintenance consists primarily of battery replacement, however, expected battery life is 20 years and battery replacement costs are projected to be minimal. ME 11 Page 3: Utility Board Agenda — Water AMR Purchase FISCAL IMPACT The fiscal impact of this purchase is $156,962.50 and funding will be provided from approved budget account 32-40-723-754-6569. Installation of AMR meters at Rosedale will be carried out by existing Utility staff. Having AMR meters will eliminate the need for an additional meter reader to be hired and manually read the standard meters in Rosedale. Reasonable cost savings along with improved information flow will be achieved when entire system is converted to AMR. Prepared by: Edward Beterbide, Electrical Test Technician Karen Vanca, Assistant Director Customer Care & Solutions JK A CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES �j /� 6L r" ZSr N DATE: DECEMBER 18, 2006 SUBJECT: APPROVAL OF AN AMENDMENT TO LICENSE AGREEMENT WITH NORTHROP GRUMMAN FOR A TEMPORARY 12 -INCH WATERLINE RECOMMENDATION It is recommended that the Utility Board/City Council approve the Amendment To Temporary License Agreement (Amendment) with Northrop Grumman (Northrop) whereby Northrop will continue to allow the City the temporary use of a portion of the southeast corner of Northrop's south parking lot for placement of a temporary 12 -inch waterline to carry water to the west end of the Azusa Light & Water water system. It is further recommended that the Utility Board/City Council approve the Amendment subject to review of the final version by legal counsel and staff in regard to any nonmaterial changes. BACKGROUND Sometime during the early morning hours of Tuesday, February 28, 2006, following a hard rain, a portion of the north wall of Cemex's gravel pit located under the south edge of the southeast corner of Northrop's asphalt parking lot collapsed, taking with it a small portion of Northrop's asphalt lot. Also damaged was approximately 100 linear feet of Azusa Light & Water's (ALW) 12 -inch waterline which parallels the south edge of the parking lot. The loss of this 12 -inch line reduced water supply to the industrial area on Irwindale Avenue to one 12 -inch line. Without the Flow capacity of the missing 12 -inch line, the industrial area faced low fire flows in the event of an emergency. Further, without the back up 12 -inch waterline, severe water service interruptions could have ensued if the remaining 12 -inch line suffered leaks and required repairs. In order to address the water service reliability issues and public safety concerns, Northrop and the City of Azusa entered into a Temporary License Agreement (Agreement) effective July 6, 2006, which resulted in the installation of a temporary above ground 12 -inch water line that reconnected both ends of the broken water main. 0I The Agreement provides the City with following: 1. The temporary use of a portion of the southeast corner of Northrop's south parking lot for placement of a temporary 12 -inch waterline to carry water to the west end of the ALW water system. 2. This use will be provided at no cost to the City for the first 90 days 3. The City can extend the term of the Agreement for additional three 30 -day terms by paying $10,000/term to Northrop for up to $30,000 The purpose of the Agreement was to provide time for City Staff to negotiate with Northrop and other parties involved, for a permanent easement for a new 12 -inch waterline to replace the temporary waterline, and to resolve issues regarding compensation by the responsible party for the damaged property. Those negotiations are still ongoing, however, the current Agreement only extends to January 2, 2007 -- after all options to extend the term have been exhausted. Since more time is needed to resolve issues amongst the parties, an Agreement amendment is proposed for your consideration which will provide more time for negotiations regarding a permanent easement and for cooperative efforts to resolve issues regarding compensation by the responsible party for the damaged property. The Amendment would provide for an extension of the term of the Agreement and would also include amended Exhibits to the Agreement to accurately reflect the location of facilities. Under the Amendment, the City would have the right to extend the term for an additional 6 options of thirty days each at the price of $10,000 per 30 -day period. Cemx has been making the $10,000 payments and has agreed in writing to continue to make such payments throughout any extended terms under the Amendment. Cemex and Northrop will continue to pursue negotiations toward the potential sale of all or a portion of the Northrop property that is at issue and Cemex will pursue the possibility of having the $10,000 payments applied toward any ultimate purchase price or any real property transaction with Northrop. FISCAL IMPACT The Amendment, between the City and Northrop, calls for the payment of $10,000 for each 30 -day option period. As a result, the Amendment may cost up to $60,000 if the City exercises all the available extensions in the agreement. However, as explained above, Cemex has been paying and/or reimbursing the City for such payment and has agreed to continue such payments during the term(s) of the Amendment. Prepared by: Chet Anderson, Assistant Director - Water Operations 012 AMENDMENT TO TEMPORARY LICENSE AGREEMENT Between THE CITY OF AZUSA, a California municipal corporation NORTHROP GRUMMAN SYSTEMS CORPORATION, a Delaware corporation WE AMENDMENT TO TEMPORARY LICENSE AGREEMENT This Amendment to Temporary License Agreement ("Amendment") is entered into as of this day of , 2006, by and between the City of Azusa, a California municipal corporation (hereinafter referred to as "City") and Northrop Grumman Systems Corporation, a Delaware corporation (hereinafter referred to as "NGSC"). RECITALS A. The parties entered into a Temporary License Agreement ("Agreement") effective July 6, 2006. The outside termination date and expiration of all potential options to extend the temporary license thereunder is January 2, 2007, assuming all options to extend are duly exercised and no prior termination occurs by virtue of any other provision of the Agreement. B. Under the Agreement, NGSC granted to City a license for it and its Permitees to enter the surface of the Temporary Pipeline Area for not more than ninety (90) days for the purpose of using, operating and maintaining within the Temporary Pipeline License Area the Temporary Pipeline (the "Temporary Pipeline License"). With NGSC's knowledge, the Temporary Pipeline construction work was not in fact carried out within the Temporary Pipeline Construction Area as described in Exhibit `B" to the Agreement and as depicted in Exhibit "C" to the Agreement and the final location of the Temporary Pipeline was not contained within the Temporary Pipeline License Area as depicted on Exhibit "C" to the Agreement and as described in Exhibit "D" to the Agreement. C. The parties hereto have agreed to amend the Agreement by this Amendment, in order to revise Exhibits `B", "C", and "D" to reflect the actual Temporary Pipeline Construction Area and Temporary Pipeline License Area. D The parties now desire to extend the term of the Agreement as set forth hereinbelow. NOW, THEREFORE, in consideration of the mutual covenants, promises, and conditions set forth in this Amendment, and for other good, valuable, and adequate consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree to amend the Agreement as follows: In partial modification to the provisions of Sections 2 and 5 of the Agreement, City shall have an additional six (6) options of thirty (30) days each ("Extension Options") to extend the term of the Temporary Pipeline License for thirty (30) consecutive days for each Extension Option subject to the following terms and conditions. Each Extension Option may be exercised by City in the following manner only. In the event City elects to exercise its right to extend the term of the Temporary Pipeline License for one (1) or more periods of thirty (30) days, it shall deliver written notice (the "Option Notice") to NGSC together with Good Funds (as defined under 014 a California law) in the amount of TEN THOUSAND DOLLARS ($10,000) for each thirty (30) day period (the "Monthly Option Consideration") not later than fifteen (15) days prior to expiration of the term of the Temporary Pipeline License, or the then pending extended term if previously exercised. For example, if City desires to extend the term of the Temporary Pipeline License for thirty (30) days it shall timely deliver the sum of Ten Thousand Dollars ($10,000.00) with the Option Notice. If it desires to extend the term of the Temporary Pipeline License for sixty (60) days, it shall timely deliver to NGSC an additional sum of Twenty Thousand Dollars ($20,000.00), and if for ninety (90) days, it shall deliver Thirty Thousand Dollars ($30,000.00). If City extends the term of the Temporary Pipeline License for thirty (30) days and thereafter desires to further extend the term of the Temporary Pipeline License for additional period of thirty (30) days (or sixty (60) days) it may do so, subject to the same terms and conditions set forth above. The Option Notice shall state City's irrevocable and unconditional election to extend the Temporary Pipeline License for a period of not less than thirty (30) days. If City fails to timely deliver the Option Notice and/or the Monthly Option Consideration in the manner expressly herein provided, all Extension Options not previously exercised in a timely manner shall automatically terminate, without notice, and be of no further force or effect. If City does timely deliver the Option Notice and the Monthly Option Consideration, all references in the Agreement to the term shall be considered to mean the term as extended, and all references to the termination or to the end of the term shall be considered to mean the termination or end of the term as extended. THE EXTENSION OPTIONS SHALL AUTOMATICALLY TERMINATE UPON THE EARLIER OF A DEFAULT OR BREACH OF THIS AGREEMENT BY CITY, A FAILURE OF CITY TO TIMELY DELIVER ITS OPTION NOTICE AND THE MONTHLY OPTION CONSIDERATION FOR ANY MONTH, EXPIRATION OF THE FINAL OPTION TERM PERMITTED HEREUNDER (JULY 1, 2007), OR UPON 90 DAYS PRIOR WRITTEN NOTICE FROM NGSC TO CITY. NGSC's right to terminate the Agreement, except by reason of a breach or default, shall not be in effect during any extended term for which City has properly exercised one or more of its Extension Options. Under no circumstances shall City be entitled to a return of the Monthly Option Consideration. Notwithstanding the foregoing, it is hereby acknowledged and agreed that as of the effective date of this Amendment, City, NGSC and CEMEX, Inc, a Louisiana corporation are considering, and/or engaging in, negotiations for a potential amended and restated temporary license agreement which may provide, among other things, for: (a) CEMEX to be solely responsible for payment of all Monthly Option Consideration which has been, or will become, due and owing under the Agreement and this Amendment; and (b) the application of all Monthly Option Consideration payments toward the purchase price set, forth in any Transaction, as defined in the Agreement. Except as so provided, the Agreement and all its provisions remain in full force and effect. 015 IN WITNESS WHEREOF, this Amendment has been executed by the parties on the day and year first above written. CITY OF AZUSA 0 Diane Chagnon, Mayor NORTHROP GRUMMAN SYSTEMS CORPORATION, a Delaware corporation M Signature A.J. Paz, Director, Corporate Real Estate 016 EXHIBIT "B" Temporary Construction Area THE SOUTHERLY 106.00 FEET OF THE EASTERLY 306.00 FEET OF PARCEL 10 OF PARCEL MAP NO. 7580, IN THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 81, PAGES 65 THRU 68 INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 017 EXHIBIT "C" Map of License Areas (Attach prior to execution) 018 EXHIBIT "D" Legal Description of Temporary Pipeline Area (Attach prior to execution) 019 ct O card a3 . N • l, 020 Power Resources Division Monthly Report ■ Power Resource Update Power Consumption Comparison ■ Wholesale Market Trend ■ Power Resource Budget Update A -z Power Resource Update ■ Completed the participation in the first phase of California Independent System Operator (CAISO) market redesign simulation dry runs. Second phase will commence early 2007 ■ Completed interviews of short listed service providers 'in the Southern California Public Power Authority (SCPPA) power scheduling RFP. Final evaluation is under way for selection ■ Completed the data preparation for the electric system cost of service studies. Proceeding to conduct the cost allocation phase of cost of service study ■ Final feasibility study report for Colton generation has been reviewed. The project has been determined to be not cost effective for the City to pursue at this time ■ Continue to represent the Southern California munis on selective CAISO and Federal Energy Regulatory Commission (FERC) matters. Latest activities among others involve: (a) CAISO's 2008 local generation requirement studies; (b) CAISO 2007 local generation requirement tariff amendment ■ Monitoring munis effort in negotiating with the California Energy Commission in the implementation of rules governing SB 1368 (Greenhouse Gas reduction legislation) ■ Completed various year-end regulatory and financial disclosure filings 0 -,rJ CITY OF AZUSA ENERGY CONSUMPTION COMPARISON ENERGY CONSUMPTION IN MWH 57.4 60.8 PERCENT ' MONTH FY 05-06 FY 06-07 CHANGE JUL 25,839 29,287 13.34% AUG 26,758 25,912 -3.16% SEP 22,725 24,379 7.280/6 OCT 21,746 21,700 -0.21% NOV 19,942 20,456 2.58% DEC 20,163 -100.00% JAN 20,070 -100.000/0 FEB 18,397 -100.00% MAR 20,326 -100.00% APR 18,610 -100.00% M4Y 21,021 -100.00% JUN 24,585 -100.00% TOTAL 260,184 121,734 4.31% CITY OF AZUSA PEAK DEMAND COMPARISON PERCENT urmrH FY05-06 FY06-07 CHANGE JUL 57.4 60.8 5.78 /° AUG 57.9 55.2 -4.66% SEP 54.9 63.7 .... 16.00%, - OCT 48.0 43.9 -8.41% NOV 41.1 46.0 11.81% DEC 36.2 -100.00% JAN 34.8 .. _- -100.00% _. --FEB'_._ 37.1 -100.00% MAR 35.8 -160.00% APR _ ..__... 35.9 -100.00% my 100.00% JUN 59.1 100.00%0 PEAK DEMAND IN MW c w A" WHOLESALE ELECTRICITY SPOT MARKET PRICES IN CALIFORNIA ALL PRICES IN $/MWH G N AVERAGE AVERAGE MONTH ON PEAK PRICE OFF PEAK PRICE OCT 05 $89.57 $71.27 NOV 05 $64.84 $55.39 DEC 05 $94.47 $80.52 JAN 06 $59.76 $46.30 FEB 06 $53.77 $46.34 MAR 06 $46.28 $36.28 APR 06 $49.04 $32.41 MAY06 $48.92 $26.27 JUN 06 $59.52 $30.03 JUL 06 $83.86 $43.66 AUG 06 $63.02 $43.84 SEP 06 $43.70 $31.36 OCT 06 $47.68 $35.03 NOV 06 $53.55 $41.34 ALL PRICES IN $/MWH G N Power Resource Cost Accounting ... ..... .. j (6) A1461-LEAR, Y ------ S C . HED- U-LINGOrr -T AL SERVICE COSTS DISPATCHING COSTS ! COSTS (8) ,-WHOLESA-E -NET, .. .... 0�=Kll I=Q fl.(IqT-q Jul -06 1 1,182,751.52 ---- ------ q0. ---- -16 26,719.50 r 3,410,352.73 (1,804,751.85)1 1,605.600.88 Se B Aug -06 1 1,174,610231 1185,734801---1860,78223 1,943,35923 d .... .. 1,C66,782.23 250, 816.51 w &1.62F 2510076631 r 3,335,024.21 1,652,503.02), 1,682,521. - 1,173.599.19 -1,237,7-24--38--'l' 11 I 1,527,90427r. 238En.3-7- - ----20.000 20,000..00 1 L ---- -- 29,311.61 2:9 89,393.44 (1,228,97368)I,___1.76041976 . ! INCLUDES ALLSHORTTERM PURCHASES FOR HEDGING, LOAD BALANCING PURPOSES, RAR CAPACITY 1,502,140-A-2 236,36-4-37----_-.___.20,000:00.}_ 00 INCLUDES ALL SHORT TERM AND LONG TRANSMISSION CONTRACT COSTS CHARGED BYCALIFORNtA INDEPENDENT SYSTEM OPERATOR FOR SYSTEM RELIABILITY FUNCTIONS --ti6ac— - --- -------------- T- - ------ i -d(�fS F�sCF(-EbUCif4dk4b-bf!�Oj�t(f4FNdbF-ELECTRICITY -- - ---- -- t- 0.66 INCLUDES 0.00 -6.00 (6)-- SUMOF(l)THROU'GH Jan -07 Feb -07 17) WHOLESALE DERIVED FROM OFEXCESS POWER + PTOBENEFITS 0.00 ---6.bo -,.-T 0.0 j 0 06.00 Apr-o� 0 0.00 1 Ma�07- --Ju,n-07- --- - --------------- Nood I 0.00 TOTAL$5,954,420.12 $9,212,881.50 $1.237,889.33 1 $1351698.93 m ---- ------ yn I---------- ... .. ... .... . .. .... ...... liNdEubES SCIDPALONG TERM CONTRACTS INCLUDES ALLSHORTTERM PURCHASES FOR HEDGING, LOAD BALANCING PURPOSES, RAR CAPACITY (3) INCLUDES ALL SHORT TERM AND LONG TRANSMISSION CONTRACT COSTS CHARGED BYCALIFORNtA INDEPENDENT SYSTEM OPERATOR FOR SYSTEM RELIABILITY FUNCTIONS COSTS T- - ------ i -d(�fS F�sCF(-EbUCif4dk4b-bf!�Oj�t(f4FNdbF-ELECTRICITY -- - ---- -- t- INCLUDES (6)-- SUMOF(l)THROU'GH 17) WHOLESALE DERIVED FROM OFEXCESS POWER + PTOBENEFITS DIFFERENCE OF (6) AND (7). ---------- ------ -------- C) m Ln yn r AZUSA INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES r ��%k ��r J t=1{ DATE: DECEMBER 18, 2006 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 September 16, 2006 through December 10, 2006. There will be NO Fuel Cost Adjustment on customer electric billings for the period of January 1, 2007 through March 31, 2007. The availability of the San Juan unit #3 during the period of September 16, 2006 through December 10, 2006 was 88%, slightly higher than the budgeted availability of 85%. The average cost of replacement power was $43/MWh as compared to the budgeted cost of $40/MWh, resulting in a net credit of $48,581 for Fuel Cost Adjustment. Since the amount of credit is, less than $150,000, it will be carried forward as a credit to offset future replacement power cost instead of a credit on customer bills. Thus, the Fuel Cost Adjustment will be set at ZERO for the period of January 1, 2007 through March 31, 2007. Prepared by: Bob Tang, Assistant Director of Resource Management Attachment Isa U SJ FCA QS_07.xls 026 San Juan Fuel Cost Adjustment Calculation for Q1 2007 If j(CQD)j<$100,000, then adjustment=0 If I(CQD)I>$750,000, then adjustment=+ -$750,000 or else adjustment = COD $0 January February March Forecast Retail Sales (MWh) 19,981 18,317 20,231 Si FCA for Q1 2007 (cents/KWh) 0.00 (*) Through December 10th, 2006 $42.95 12.08% Sept 16 -October November December (*) Actual SJ Output 27,864 17,917 6,845 Actual SJ Replac Energy Cost $152,843 $150,132 $7,580 Maximum Output 32,016 20,880 6,960 Unavailable SJ Output 4,152 2,963 115 % Outage Rate 12.97% 14.19% 1.65% Base SJ Output @ 85% 27,214 17,748 5,916 Unavailable SJ Output 4,802 3,132 1,044 % Outage Rate 15.00% 15.00% 15.00% Base SJ Replac Energy Cost @$40/MWh $192,096 $125,280 $41,760 Actual - Base SJ Replac Energy Cost -$39,253 $24,852 -$34,180 San Juan Insurance Premium Recovery $0 $0 $0 San Juan Insurance Payout $0 $0 $0 Cumulative Quarterly Difference (COD) -$48,581 Q4 2006 Carry -Over If j(CQD)j<$100,000, then adjustment=0 If I(CQD)I>$750,000, then adjustment=+ -$750,000 or else adjustment = COD $0 January February March Forecast Retail Sales (MWh) 19,981 18,317 20,231 Si FCA for Q1 2007 (cents/KWh) 0.00 (*) Through December 10th, 2006 $42.95 12.08%