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Home My WebLink AboutAgenda Packet - March 26, 2007 - UBi� AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA LIGHT & WATER MONDAY; MARCH 26, 2007 729 N. AZUSA AVENUE 6:30 P.M. AZUSA, CA 91702 AZUSA UTILITY BOARD CHAIRPERSON ORIEL MACIAS IOSEPH R. ROCHA BOARD MEMBER BOARD MEMBER KEITH HANKS ANGEL A. CARRILLO BOARD MEMBER BOARD MEMBER 6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call A. 1. ELECTION OF OFFICERS. Elect by majority vote a Chairperson and Vice Chairperson to serve as officers of the Utility Board. A-1. Election of Officers.doc 1 001 2. PUBLIC PARTICIPATION (PersonlGroup 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 of 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, lfStaff or Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under SPECIAL CALL ITEMS B. CONSENT CALENDAR Minutes. Recommendation: Approve minutes of regular meeting of February 26, 2007 as written. ci B-1. UB Min Fetr26.doc 2. Approval of Additional Payment and Acceptance of Notice of Completion for Gentry Brothers, Incorporated. Recommendation: Approve additional payment to Gentry Brothers in amount of $237,073; accept Notice of Completion for Project W-237, Water Main Replacement in 10' and I I' Streets; and have same recorded at the Office of the Los Angeles County Recorder. B-2 Gentry W-237.doc 3. Approval of Notice of Completion -1. A. Salazar Construction, Incorporated. Recommendation: Accept Notice of Completion for Project W-178, water main replacement in Sixth Street and Barbara Street, and services in Virginia Street and have same recorded at the Office of the Los Angeles County Recorder. B-3. NOC - Salazar.doc 4. Authorization to Bid Gladstone Yard Improvement. Recommendation: Authorize advertising for bids for Project WF -239, Gladstone Yard improvement, as part of the Capital Improvement Project for FY 2006-2007. GUstone Yd Iirpnt.doc 002 Authorization to Participate in California Climate Action Registry (Registry). Recommendation: Approve the City to join the greenhouse gases (GHG) Registry as a member and commence voluntary annual reporting of GHG emissions to the Registry. B-5. GHG Registry. DOC 6. Quarterly San Juan Fuel Cost Adjustment (FCA). Recommendation: Authorize staff to carry over the Fuel Cost Adjustment credits to offset anticipated future San Juan replacement power costs during scheduled maintenance outage in 2008. E B-6. San Juar. FCA. DOC Capital Facilities Fee Agreement with Citrus College District. Recommendation: Approve Capital Facilities Fee Agreement between the City of Azusa and Citrus Community College. LZU B-7. Citrus College Agnt.doc 8. Authorization for Southern California Edison Company to Sectionalize the 12 kV Bus at Azusa Substation. Recommendation: Authorize staff to arrange and finalize negotiations with Edison for work needed to sectionalize the 12 kV bus at Azusa Substation; authorize payment of cost estimate of $80,000; and amend existing Capital Improvement Project budget to cover expenditures. E B-8. AzBusSectm.doc C. STAFF REPORTS/COMMUNICATIONS Monthly Update on Water Treatment Plant Project rc3 C-1. WTP Moly Rpt.xis 2. Water Rate Study Update czl C-2. Water Study Update. DOC 003 Monthly Power Resource Update MW C-3. Moly Pwr Res Update.ppt 4. Worlt Plan Update Report Format CA Workplan Update_1.DOC 5. Monthly Legislative and Regulatory Update Eli C -S. Ieg6$tNe Update. DOC D. DIRECTOR'S COMMENTS E. ADIOURNMENT Adjournment. %n compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city meeting, please contact the City Clerk at 626-812-5229. Notification three (3) wotldng days prior to the meeting or time when special services are needed W/i assist staff in assuring that reasonable arrangements can he made to provide access to the meeting. " 4 004 ELECTION OF OFFICERS TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES V w DATE: MARCH 26, 2007 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 0 1 -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 (AL&W) 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 l(alscheuer, Assistant to the Director of Utilities E 0rd01-07UB. pdf DR ORDINANCE NO. 01- 07 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: RVPUBVFP6] 6015 "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 MR 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 may be 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 ChairRerson, 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 recordings of meetings of the board and developing draft Minutes of such meetings for consideration and possible approval by the board " 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 RVPUBUFF'618015 J I 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..i summary of this ordinance shall be published in the manner required by law. PASSED, APPROVED AND ADOPTED day of October, 2001. i� � Cristina Cruz -Madrid Mayor ATTEST: 9�- � Z��e� Vera Mendoza, City Clerk 61 RVPUBVFF1618015 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, ROC HA, CHAGNON,MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEM13ERS: NONE i Vera Mendoza, City Clerk APPROVED AS TO FORM: City Attorney . RVPUBVFR618015 009 EXCERPTS FROM ORDINANCE 01-03 Sec. 2-416 Meetines. 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 priorto 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 in their official capacities and shall be kept open for inspection by the public at reasonable times in the office of the city clerk Sec. 2-417 Technolo'cm al Support. The members of the 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. a" CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, FEBRUARY 26, 2007 — 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, Azusa, California. Chairperson Chagnon called the meeting to order. ROLL CALL PRESENT: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ALSO PRESENT: HARDISON, CARIILO, ROCHA, CHAGNON HANKS (Entered meeting at 6:42 p.m.) City Attorney Ferre, City Manager Delach, Assistant City Manager Person, Utilities Director Hsu, Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Assistant Director of Water Operations Anderson, Assistant Director Customer Care and Services Vanca, Administrative Services Director/Chief Financial Officer Kreimeler, Police Captain Gonzales, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Mr. Jorge Rosales addressed the Board Members expressing his concern regarding the professional services contracts awarded to Wren & Associates for the last 24 months without competition; he stated that the total amount yielded is approximately $340,000. He also talked about the potential fines of $10,000 per day that could result from AB 939 non-compliance due to waste generated by the Rosedale development and suggested the developer, ALP, be put on notice that Azusa may be liable for such fines and if so, ALP should bear responsibility. Mr. Mike Lee addressed Board Members suggesting that the Utility Board Meetings be televised, as well as the Azusa Unified School Board meetings, stating that there is a need for full accountability and that more can be received through cable television. Call to Order Roll Call Also Present Pub Part 1. Rosales Comments M. Lee Comments 01f The CONSENT CALENDAR consisting of Items B -I through B-9, were approved by motion of Consent Cal Board Member Hardison, seconded by Board Member Carrillo and unanimously carried with the Approved exception of item B-7, which was considered under the Special Call portion of the Agenda. B-7 Spec 1. The Minutes of the regular meeting of January 22, 2007, were approved as written. Min Appvd 2. The additional amount of $1,450 and budget amendment of the same amount to complete Add'I fund the purchase of a Hybrid Ford Escape for Engineering Division was approved. Vehicle pur 3. Approval was given to delegate signature authority to the City Manager and Administrative Signature Services Director to provide final approval by signature on requisitions submitted to Trustee Authority of payment of bond proceeds. 4. Authorization was given for the procurement of standard capacity product from Reliant Procure Energy and the Mayor was authorized to execute Confirmation Agreement upon finalizing Capacity the terms and conditions of the agreement with Reliant. Reliant 5. Approval was given for additional reimbursable compensation to Wren and Associates in the Wren Assoc. amount of $70,000 for continuing inspection of Rosedale Development pipeline installation. Add'I comp 6. Approval was given for additional reimbursable compensation to Wren and Associates in the Wren Assoc. amount of $70,000 for continuing inspection of Rosedale Development electric conduit and Add'I comp facility installation. 7. SPECIAL CALL ITEM — NOT APPROVED. Spec Call 8. Approval was given to purchase one new pole trailer for Electric Division from Altec Pole trlr Industries in the amount of $15,516.56 including taxes. I Altec Ind. 9. The following Resolution was approved and adopted: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA AMENDING Res. 07-C 16 THE SCHEDULE OF CHARGES AND RULES AND REGULATIONS GOVERNING THE WATER Amend Sched SERVICE SUPPLIED BYAZUSA LIGHT &WATER. (Business Customer Establishment of Credit) Rules & Regs Special Call Items Spec Call Items Chairperson Chagnon addressed item regarding the reduction of retainage for Project W-237 to Project W - Gentry Brothers, Inc. and payment thereof. She voiced her concern and opposition to the .237 Gentry reduction stating that it may affect their willingness to cooperate and also without knowledge of Reduce retnr the liquidated damages, it is unknown if the 5% reduction will cover the amount. There was no Not appvd action taken on this Item and it was not approved. Board Member Hanks entered the meeting at 6:42 p.m. Hanks ent Scheduled Items Sched Items Assistant to the Utilities Director Kalscheuer addressed the AB 939 Annual Report for 2005 stating C. Kalscheuer that it is a requirement to divert 50% of waste each year and for 2005 there was an extraordinary AB 939 amount of waste generated by the Rosedale Development, approximately 24,000 tons, which was Annual taken to Puente Hills landfill and counted as disposal, he explained when and how it came about Report and that it resulted in an initial waste diversion calculation of 26% for 2005. 02/26/07 PAGE TWO O He stated that the tonnage was counted separately and tracked in order to request the State to exclude it from the AB 939 calculation through the 2005 Annual Report since there is a policy basis for the exclusion which required filing of additional forms along with the Annual Report. Moved by Board Member Hardison, seconded by Board Member Carrillo and unanimously carried Reporting to authorize staff to submit the Reporting Year Disposal Tonnage Modification Request Year Disposal Certification form to California Integrated Waste Management Board as part of submittal of Tonnage Azusa's AB 939 Annual Report for 2005. Modify rgst Staff Reports/Communications Staff Rpts Chairperson Chagnon addressed the Water Treatment Plan Report asking about the Gantt Chart, Wtr Trmt Plnt for the project as well as deadlines, and consequences for noncompliance. The Item was Update received and filed. Water Well Rehabilitation Update was presented by Assistant Director - Water Operations Wtr Well Anderson; he responded to questions posed regarding documentation of progress, i.e. video, Update contract reports and inspections. Assistant Director of Resource Management Tang presented the Monthly Power Resources Power Res Update stating that as noted at the last meeting the cost of power will be rising and the City of Update Riverside has been formerly used as a scheduler and that they may be a potential service provider. He responded to question regarding the wind power generation in Palm Springs. Director of Utilities Hsu presented SB 1305 Report - Disclosure of Electricity Supply Resources, SB 1305 but there was no discussion as it was an Information item. Rpt Director of Utilities Hsu presented the Work Plan Update for the Utilities Department Projects. Chairperson Chagnon expressed her frustration with the Gantt Chart stating that there are late dates but no narrative explaining why things are behind, she noted problems with the following items or had questions regarding them: conversion of meter records; line 86, Sale of the Paramount Yard, line 13, the filing and document imaging system, line 19, Modifying work order billings, and the Gladstone Yard Improvements, lines 128 and 130. Staff responded to her concerns. Director Rocha questioned the Draining of the Reservoir item 179 and asked where it goes. Assistant Director of Water Operations Anderson responded stating that the debris is hauled offsite. Directors Comments Director of Utilities Hsu thanked all who attended the ground breaking for the Water Treatment Plant. He provided an update on Capitol Day in Sacramento on February 5, 2007, which he attended and met with State Legislators. The main issue for this year was on the water, because the State of California approved, infrastructure bonds in the last election there is a need to strategize on how best spend those monies and the other issue was the canal and ecological as well as upgrades to it. He provided an update on CMUA Annual Conference which will be held in San Diego on March 28, 2007, and stated that if Board Members plan to attend they should let him know so that he can make arrangements. He also noted that APPA meeting will be held March 12th, IP and 14`h. It was consensus of the Board Members to recess to Closed Session to discuss the following: Utilities Work Plan Update Dir Cmts Dir of Util Comments Closed Sess CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Conf w/Legal Government Code Section 54956.9 (b) C_ns Receipt of Correspondence from Citrus College Regarding Payment of Water System Development Fees. 013 02/26/07 PAGE THREE CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Conf w/Legal Government Code Section 54956.9 (c) Cnsl One Potential Case. The Board Members recessed to Closed Session at 7:08 p.m. and reconvened at 7:34 p.m. Recess Reconvened City Attorney Ferre advised that there was one reportable action item and it was moved by Board Motion Member Hanks, seconded by Board Member Rocha and unanimously carried that a potential Citrus College agreement be brought back to the Board Members with regard to the Citrus College Water System And Wtr sys Development Agreement Fees. Further, there was no reportable action regarding the other Closed Dev fees Session item. Moved by Board Member Hardison, seconded by Board Member Rocha and unanimously carried Adjourn to adjourn. TIME OF ADJOURNMENT: 7:35 P.M. SECRETARY NEXT RESOLUTION NO. 07-C17. 02/26/07 PAGE FOUR 014 h n 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 26, 2007 SUBJECT: ADDITIONAL COMPENSATION AND NOTICE OF COMPLETION - PROJECT W- 237, WATER MAIN REPLACEMENT IN 10TH STREET AND 11TH STREET, IN THE CITY OF AZUSA RECOMMENDATION It is recommended that the Utility Board/City Council approve additional compensation for additional work done by Gentry Brothers Construction; accept Project W-237,and direct the City Clerk's Office to execute the Notice of Completion and have the same recorded at the Office of the Los Angeles County Recorder. BACKGROUND The Utility Board, at its May 22, 2006 meeting, approved a contract with Gentry Brothers in the amount of $1,986,624.20 for water main replacements that were experiencing problems with leaks and that were, for various reasons, experiencing flow and pressure problems. The mains replaced in this project had leak problems and required constant repair and an excessive number of water utility staff hours to make the repairs. During the installation of the replacement mains, additional work was required of the contractor due to varying site conditions, added pipeline and appurtenances, paving, and the request that additional paving work be done. This additional work amounted to $241,823.00, (detailed listing of added work and associated costs is attached), brought the total amount of the contract for project W-237 to $2,228,447.20. However, Gentry did not complete the project by the contract date of completion and is therefore subject to liquidated damage reductions. The contract completion time of 120 days was extended by 15.5 days. Gentry Brothers' actual time completion was 25 days beyond the contract date of completion, and so Gentry Brothers completed the project 9.5 days over the deadline. At $500 per day for liquidated damages, a reduction of $4,750 from the final contract amount owed. The final amount of added compensation is therefore, $237,073.00. 015 Page 2. Completion Notice for Project W-237 FISCAL IMPACT The fiscal impact of approving additional compensation is $237,073.00. The payments will be made from the Capital Improvement Budget Account 32-80-000-721-7130- 72107B/72I07B-7130. Prepared by: Chet F. Anderson, P.E., Assistant Director, Water Operations W-237 AddWrial Funding Required.xis 0 161 . 1l*-34Mf;if[*P Furnish & install 12 -inch Ductile Iron Pipe, cl 350 Furnish & install 10 -inch Ductile Iron Pipe, cl 350 Furnish & install 8 -inch Ductile Iron Pipe, cl 350 Abandon existing valves Remove and replace concrete sidewalk Furnish & install asphalt concrete over c.a.b. per City of Glendora Typical Trench Detail Furnish & install wearing course per City of Azusa Standard Dwg. R-12 Additional Paving and Striping on 11th Street kr+ Project W-237 Additional Funding Required UNIT UNIT PRICE CONTRACT CONTRACT ACTUAL QUANTITY COST QUANTITY PRICE QUANTITY DIFFERENCE DIFFERENCE LF $85.00 4,415.00 $375,275.00 4,506.00 91.0 $7,735.00 LF $75.00 32.00 $2,400.00 35.00 3.0 $225.00 LF $70.00 2,912.00 $203,840.00 2,952.00 40.0 $2,800.00 EA $200.00 42.00 $8,400.00 43.00 1.0 $200.00 SF $15.00 60.00 $900.00. 69.00 9.0 $135.00 SF $6.00 11,553.00 $69,319.00 11,783.00 230.0 $1,380.00 SF $4.00 28,613.00 $114,452.00 37,030.50 8,417.5 $33,670.00 $195,678.00 [otai $241,823.00 MOE Q M IKE AZUSA i unr x r.•errr 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 26, 2007 SUBJECT: NOTICE OF COMPLETION - PROJECT W-178, WATER MAIN REPLACEMENT IN 6'" ST. AND BARBARA ST., AND SERVICES IN VIRGINIA ST. IN THE CITY OF AZUSA RECOMMENDATION It is recommended that the Utility Board/City Council accept Project W-178, and direct the City Clerk's Office to execute the Notice of Completion and have the same recorded at the Office of the Los Angeles County Recorder. BACKGROUND The Water Division designed these water main replacements to replace water mains that were experiencing problems with leaks and that were, for various reasons, experiencing flow and pressure problems. The mains replaced in this project had leak problems and required constant repair and an excessive number of water utility staff hours to make the repairs. Also, the mains replaced in 6`" and Barbara Streets are in a street designated by Public Works as streets to be resurfaced this year. This project allows the Water Division to lessen the probability of leaks within the newly paved streets. The contractor for this project was J.A Salazar Construction, Inc. FISCAL IMPACT The fiscal impact of approving Notice of Completion involves the return of $81,224.08 currently held by the City as retainage on this project following the statutory 35 day waiting period. Prepared by: Chet�F. Anderson, P.E. Assistant Director, Water Operations NDC -]A Salazar.pdf 018 RECORDING REOUESTED BY Azusa City Clerk AND WHEN RECORDED MAIL TO: r NAME City of Azusa STR£eT ADOAfS$ 213 E. Foothill Blvd. cm, r. ATE e ZIPCOOE Azusa, CA 91702 L I SPACE ABOVE THIS LINE FOR RECORDER'S USE s�sosoleirua��eo,Zs.,MORMS NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for Complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2, The full name of the owner is City of Azusa 3. The full address of the owner is 213 E. Foothill Boulevard, Azusa, CA 21702 4. The nature of the interest or estate of the owner is: In fee. IF OTHER THAN FEC. SrPoKE .D FEES N I Rf, FOR E%AMn,p. AIfpY.Sfa OMER CONfPV= OF FIACTNLSE.' OR LESSEE') a S. The full names and full addresses of all persons, if any, who hold tide with the undersigned as joint tenams or as tenants in common are: NAMES ADDRESSES 6. The full names and full addresses of the predecessors in interest of the undersigned, if the property was transferred subsequertt to the commencement of the work or.improvements herein referred to: NAMES ADDRESSES 7. A work of improvement on the property hereinafter described was completed on March 25, 2007 The work done was: Waterline Replacement in Sixth St and Barbara Street S. The name of the contractor, if any, for such workof improvement was J.A. Salazar COnStruction, Inc. November 20. 2006 IIF W WHINROR FOR WOW. OF WA vrr AL A WIgIL NS'Wr °.ONE") WTE OF rANFMCT) 9. The property on which said work of improvement was completed is in the City of Azusa Countyef Los Angeles ,Stateof CA , andisdesrnbedasfoTlows: rit-y stray f .c 10. The street address of said property is None {IF No SnRXV ADDRESS NAS ROEN OFFICwLr ASSIGNED. 0 MNE' Dated: March 26, 2007 ( IONATuRE OF OW OR CORFO W OFF1cIA OF QNNER NAMED IN FMAGRYrI 2 OR WS Aoarn VERIFICATION 1, the undersigned, say: I am the Mayor the dec)arant of the foregoing notice of completion; 1' 1¢soan Dr,' JWAGER 0F', PARTNER OF" OF , M.) I have reed said notice of completion and know the contents thereof; the same is true of my own knowledge. l declare under penalty of perjury that the foregoing is true and correct. Executed on at (t:Rr) (STATE) 1PEF5ONAL D".rfURE OF THE O4V0UAL.06 SWTAWN6 TMT THE COMEN: S OF TNF NOME OF CouFLr ARF TIVE.) WOLCOTrS FORM 111A - Fay. 491 (01. r . SN 1,10 E Of OCMFtEnoN *I 99N woLCOTrs FORMA, N. (See reverse side for additional Information) 11fl11fl1111111lI1j5 019 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESnIr DATE: MARCH 26, 2007 SUBJECT: APPROVAL TO BID PROJECT WF -239, GLADSTONE YARD IMPROVEMENTS RECOMMENDATION It is recommended that the Utility Board/City Council authorize advertising for bids for Gladstone Yard Improvement Project WF -239. BACKGROUND The Water Division Gladstone Distribution Yard is in need of block walls around its southern property perimeter to improve the security of the yard. The existing chain link fence has been breached on many occasions by trespassers from the surrounding neighborhoods. This poses both a security problem for the Water Division and safety issues for the trespassers. In addition, the County Flood Control Division has expressed concern on several occasions that the drainage from the Yard area tends to drain across the County Channel Maintenance Road to the south of the Yard and flows across the road and over the top of the drainage channel. This project will mitigate that problem by directing the storm water flow into the channel through an existing well flushing pipe. This project also includes paved material storage bins to eliminate open piles of sand and gravel material. FISCAL IMPACT This is an approved project in the Water Division's Capital Improvement Project budget. The fiscal impact will be determined after the bid opening. . Prepared by: Chet Anderson, Assistant Director - Water Operations 020 6-s AZUSA 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 26, 2007 SUBJECT: PARTICIPATION IN CALIFORNIA CLIMATE ACTION REGISTRY RECOMMENDATION It is recommended that the Utility Board/City Council authorize the City to join the California Climate Action Registry (Registry) and commence voluntary annual reporting of greenhouse gas (GHG) emissions to the Registry. BACKGROUND Recent state legislation (Assembly Bill 32) set California on an ambitious path to Reduce the state's greenhouse gas emissions to 1990 levels by the year 2020. Critical to attaining the GHG reduction goal is an accurate inventory of GHG emissions. The California Air Resources Board is beginning to account for GHG emissions to create an inventory and will eventually promulgate rules to require accounting and reporting of emissions by individual entitles. The California Climate Action Registry (the Registry) was established by California statute as a non-profit voluntary registry for GHG emissions. The purpose of the Registry is to help companies and organizations with operations in the state to establish GHG emission baselines against which any future GHG emission reduction requirements may be applied. Currently, the Registry has more than 200 members and about 30 members voluntarily submit annual GHG emission reports to the Registry using a standardized format and the reports are validated by the Registry. Many of the electric utilities in California are already voluntarily inventorying and reporting their GHG emissions; some of these include, the Los Angeles Department of Water and Power, City of Anaheim Public Utilities, and City of Palo Alto Utilities. Given the eventual AB 32 mandatory requirements, staff recommends City's participation in the Registry to get a head start on GHG emission inventory reporting, and document early GHG emission reduction efforts. The annual membership fee for a governmental entity to join the Registry is $750 and the annual reporting is strictly voluntary at this time. FISCAL IMPACT The annual Registry membership fee of $750 will be paid out of electric fund's power resource budget. Prepared by: Bob Tang, Assistant Director of Resource Management 021 e, w 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 26, 2007 SUBJECT: QUARTERLY FUEL COST ADJUSTMENT FOR SAN JUAN RESOURCE RECOMMENDATION: It is recommended that the Utility Board authorize the staff to carry over the San Juan Azusa Fuel Cost Adjustment (FCA) credits to offset anticipated future San Juan replacement power costs during scheduled maintenance outage in 2008. BACKGROUND: 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 December 11, 2006 through March 15, 2007. For reasons stated below, staff recommends that NO Fuel Cost Adjustment be assessed on customer electric billings for the period of April 1, 2007 through June 30, 2007. The availability of the San Juan unit #3 during the period of December 1 1, 2006 through March 15, 2007 was 95.3%, substantially higher than the budgeted availability of 85%. The average cost of replacement power was $52/MWh as compared to the budgeted cost of $40/MWh, resulting in a net credit of $240,501 for Fuel Cost Adjustment for the quarter, and when combined with the carry over from the previous quarter of $48,581 it resulted in a total FCA credit of $289,082. Normally, when FCA credits exceed $150,000 the amount would be credited back to customers on their electric bills in the immediately following quarter. However, given the anticipated large San Juan replacement power costs in the first quarter of 2008 due to planned San Juan unit 3 major maintenance outage staff recommends the FCA credits be carried over to offset the foreseeable large San Juan FCA charges early next year. ("22• If the Board approves staff's recommendation, the Fuel Cost Adjustment then would be set at ZERO instead of a credit of 0.45 cents per kWh for the period of April 1, 2007 through June 30, 2007. FISCAL IMPACT: There Is no fiscal impact with this recommendation. If approved by the Board, $289,082 of San Juan FCA credits would be carried over to offset future San Juan replacement power costs. Prepared by: Bob Tang, Assistant Director of Resource Management Attachment I: S1 FCA Q2_07.xis 023 __ San Juan Fuel Cost Adjustment Calculation for Q2 2007 Actual SJ Output Actual SJ Replac Energy Cost Maximum Output Unavailable SJ Output % Outage Rate Base SJ Output @ 85% Unavailable SJ Output % Outage Rate Base SJ Replac Energy Cost @$40/MWh Actual - Base SJ Replac Energy Cost San Juan Insurance Premium Recovery San Juan Insurance Payout Cumulative Quarterly Difference (CQD) Q1 2007 Carry -Over If 1(CQD)1<$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 2007 (cents/KWh) (*) Through March 15th, 2007 Dec 11 -January February March (*) 34,483 19,461 10,744 $127,253 $36,839 $2,783 36,936 20,160 10,800 2,453 699 56 6.64% 3.47% 0.52% 31,396 17,136 9,180 5,540 3,024 1,620 15.00% 15.00% 15.00% $221,616 $120,960 $64,800 -$94,363 484,121 -$62,017 $0 $0 $0 $0. $0 $0 -$240,501 -$48,581 -$289,082 April May June 18,512 20,931 24,475 -0.45 $52.02 4.72% Page 2, Capital Facilities Fee Agreement This resulted in a dispute between the City and Citrus College as to amount of Water System Development Fees to be charged to Citrus College. Dispute issues included substantiation of the fees, imposition, payment and collection of the fees in connection with each new building, and the proper agreement between the City and Citrus College to resolve the dispute. Following several meetings between the parties, an agreement was reached to resolve the dispute, and the agreement, in principle, was deliberated at the February Utility Board meeting. In summary, Citrus College agrees to pay the City for Water System Development Fee, as being referred to in the agreement as a Capital Facility Fee, for all the buildings in the College's building program, including those that have been built and those that will be built in the following years, less the building(s) to be demolished during the same period, based on the Water System Development Fee currently in effect. FISCAL IMPACT By resolving this ongoing dispute the Water Utility will receive an immediate payment of $81,262.72, and avoid any additional staff and possible legal costs. The Water Utility, however, will forgo approximately $13,802, if fees were calculated based on the actual Water System Development Fees that were or will be in effect at the time each building was or will be built. Prepared by: J. Hsu 026 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 26, 2007 SUBJECT: AUTHORIZATION TO ENGAGE SOUTHERN CALIFORNIA EDISON COMPANY TO SECTIONALIZE THE 12W BUS AT AZUSA SUBSTATION RECOMMENDATION It is recommended that the Utility Board/City Council: a) Authorize staff to arrange and finalize negotiations with Edison for completing the work needed in order to sectionalize the l 2kV bus at Azusa Substation b) Authorize the expenditures to be paid to Edison for this work currently estimated at Eighty Thousand Dollars ($80,000) c) As appropriate, amend existing Capital Improvement Project (CIP) budget for Azusa Substation Facilities. to cover the expenditures BACKGROUND In early 2005, Azusa Light & Water informed Southern California Edison Company (Edison) in writing about the possibility of sectionalizing the 12kV bus at Azusa Substation. Sectionalizing the t 2kV bus involves opening the manual disconnect switches in between the busses to split them into sections. The purpose is to operate separately the paralleled substation power transformers connected to the bus, thereby limiting equipment exposure from unwanted electrical disturbances. When the bus is sectionalized, it will also help reduce the magnitude of electrical faults or short circuit duty that may occur and help mitigate equipment damages if a disturbance did occur at the station. As 80% of the City electricity consumption is served out of Azusa Substation and City's electricity consumption continues to grow, it is becoming increasingly critical to provide contingency relief in case of a major disruption. Sectionalizing the bus at Azusa Substation is an effective way to accomplish this goal. ,..0.27 The sectionalizing work needs to be performed by Edison since Edison is the owner and operator of the bus section at Azusa Substation. In recent meetings with Edison on this subject matter, Edison provided a cost estimate of $80,000 for this work with targeted date of completion of July 2007 subject to Edison's personnel availability to do this work. In light of increasing service reliability considerations and fast approaching hot summer weather, staff recommends that the Board provide staff with the authorization to proceed with this work subject to satisfactorily working out the final scope of work and costs with Edison. FISCAL IMPACT This project is budgeted this fiscal year under CIP Budget Fund 33-80-000-730- 7130/73007B-7130 with a current amount of $75,000. A budget amendment of about $5,000 is anticipated when Edison provides the final cost estimate. Prepared by: Dave Ramirez, Assistant Director — Electric Operations 028 r C-1 JANUARY PROGRESS MONTHLY REPORT PAYMENT REQUEST: MARCH, 2007 .; PROJECT: MEMBRANE TREATMENT UPGRADE OF THE CANYON FILTRATION PLANT PROJECT NO.: VVVF-207 • GENERAL CONTRACTOR: SSC CONSTRUCTION INC. DESIGN ENGINEER: BLACK & VEATCH INC. CONSTRUCTION MANAGER: BLACK & VEATCH, INC. PROJECT CONTRACT AMOUNT: $35,905,500.00 CHANGE ORDERS TO DATE: $0.00 MONTHLY ACTIVITIES SSC has moved office trailers onto the site for themselves and As of March 26, 20D7 the Black & Veatch inspector SSC has excavated two stonnweter detention ponds, the foundation for the O&M Building, the reservoir site and a bypass canal to route the Committee of Nine Canal around intake structure site. SSC also has done miscellaneous excavation around the site SSC has submitted a draft schedule of values for the project , JANUARY PROGRESS PAYMENT REQUEST: $948,075.10 TOTAL PAID TO DATE $1,518,349.10 AMOUNT TO ESCROW $151,834.91 PROJECT PERCENT COMPLETE 4.23% 029 Printed: 22 -Mar -07 at 09:17 Filtration Plant Baseline 029- (A) .anyon Filtration Plant T03 .07 - - Ip 10 395 29.7an-07 09-Feb47: AIODs,A1oo7,A1oo9.wlolo, PapervvorkandDocumentation p 0 0 29.7en-07 A11000, A3227, A3228, A2500, A1000 Notice to Proceed A2506, A2512, A2518, A2524, A2530, A3000, A3007, A3014, A3025, A3032, A3039, A3046, A3D53, A3060, A3067, A3074, A3081, A3088, A3095, A3102, A3109, A3116, A3123, A3130, A3138, A3145, A3151, A3158, A3165, A3172, A3176, A3160, A3186, A3192, A3196, A3310, A3300, A3302, A10000, A9000, ! uicbase Project Bond _ - 1 l 0 29-1an-07 29 -Ian -07 A1000 A1010 "._live"" ---------- ub selan "'- -- e asdimp5aucinSWPPP A1005 porhase Project Bond 1 1 0 29-hol 29-1an-07 A1000 A1D10 Creole and W lament: Plan A1007 Submit Baseline Schedule 10 10 381 29 -Jan -07 09 -Feb -07 A1000 A3233 'mrt7; •ty A1009 Create and lmplementSWPPP Plan 404 404 0 30 -Jan -07 15 -Aug -08 Mobilize K; pgso-RcVrrpilers(EqulPmc4t/Ut4'dm: Dem •• obilizi $IteWOrk 10 0 30.7m-07 12 -Feb -07 A3200, A10 05, A1007, A11000 A3230 •-- A1010 Mobilize Key Personnel?railerstEquiPmenWrititles 10 1 1 0 15 -Aug -OS 15 -Aug -08 A3208 - '"'" """""' -"' "- A1020 Demobilize 383 383 0 29 -Jan -07 16 -Jul -08 Sitework 369 369 0 29-1ao-07 16 -1W -OB A1000 A3zoD .. A20DO Trenching, Sheeting and Shoring - - • Effim 350 331 29 -Jan -07 DS -May -08 I - • -- ","- - submrf,Ins numetlmnno @ bontrdl •: Equipment and Material Submittals/ReviewlProcurement 50 266 6 29 -Jan -07 09 -Apr -07 A1000 Azso1 En1,,+met�Rev!cw otlnslTrnnepmtion d: (pntr01 : '• A2500 Submit lnshtunentetion&Comrol Sp 15 266 10.APr-07 30 -Apr -07 A2500 p2502 : PmrAn eehd DUiver;InsManen ,nod."""" A2501 fingineer Review of Instrumentation &Control 15 60 60 266 01-Mny-07 25-Iu1-07 A2501 SuhE t D� n wpm �•, A2502 Procure and Deliver Instrumemation &. Control 50 50 246 29 -Ian -07 09 -Apr -07 A100D A2507 A2508 Rev1 'ew o{p ."l _. �,uil - o Fgtnpm _," -" "" ----- . ._-.liver Di Distribuli A2506 Submit Distribution Equipment 15 15 246 10 -Apr -07 30 -Apr -07 A2506 , " " ocureuand Del vu A2507 Engineer Review of Distribution Equipment 8p g0 246 01 -May -07 22 -Aug -07 A2507 Submit Lighting j A250g Pmome and Deliver Distribution Equipment 50 50 266 29-Iaa-07 09 -Apr -07 A1000 A2513 Engineer Review ofLighting '; •, ' A2512 Submit Lighting 15 IS 266 10 -Apr -07 30 -Apr -07 A2512 A2514 : • Pron..e ti+ghtiug '; A2513 Engineer Review of Lighting 60 60 266 0t -May -07 25 -Jul -07 A2513 1 A2519 S Firc-Nam Package, :_ - - i .""""-."__". -"' " "" ..""" -. " ""�' ""'.I ""., . :i A2514 Procure Lighting 50 50 54 29-]m•07 09 -Apr -07 A1000 --- ew of A2518 Submit Fire Alarm Package 15 IS 54 10 -Apr -07 30 -Apr -07 A2518 p2520 A3939, A3854 PfOcum Firo Alatm Papkl •" : _ g ................. -.--_ !cera, �d 8m1 m Roo j A2519 Engineer Review of Fire Alarm Package 50 50 54 01 -May -07 11-1W-07 30.Mar•07 A2519 A1000 l A2525 Ihnd Submrt do Prdfebn� Df _ �' an Aoofin System _ fe_bnceRd Bwldin g A2520 Proaue Fire Alarm Package Prefabricated Buildings and Roofing System 44 44 71 29 -Ian -07 02 -07 20.Apr-07 A2524 A3765, A3852, A3925........ Subgd[DY1CD - J $�chQ y Cdr....... '"---,""- A2524 Submit on A2525 Engineer Review ofpmf"Oercd Buildings and Roofing System 15 15 60 71 56 -Apr 29 -Jan -07 23 -Apr -07 A1000 A2531 .�� .., Ofl]1YKDesfgu Pack4ge' " En . tcw, Br r, A2530 Submit DYK Design and Structural Calculations 60 15 IS 56 24-A 07 14 -Ma -07 y A2530 A4211 run,: ' •.""-" g.".; -I... • •Sub f rev! mitWueh, 6 ng A2531 Engineer Review ofDYK Design Package 44 234 29 -tan -07 30 -Mal A1000 i A3001 A3002 1, Engitieer REieW bf 7nBnt TravCbng SCrleo j Travtlin •' • -i Scuen : Di*pi A3000 Submit lnflucntTraveling Screen 15 15 234 02 -Apr -07 20•Apr-07 A3000 fj A3724 .• :' urz 4 - A3001 Engineer Review Of influent Traveling Scrccn 60 234 23 -Apr -07 17-1ul-07 A3001 t .; n PugrPf rmt onzp ntnt $actio, ".�._+...... _ __: . .•..".""".. i."--"""""�•`" "• '.. Submit A3002 Procure and Deliver Influent Traveling Screen 60 44 44 233 29Jan-07 30 -Mar -07 A1000 A3724 A3009 {{ on Pumps; ' 4 ntalErai Bach ," eN OI'HorrLr din enter Ryr nPumps . ' ! iv Fjonzb M End Suction A30D7 Submit Horizontal End Suction Pumps 15 15 233 02 -Apr -07 20.Apr-07 A30D7 are an �_-_b ---- _------- A30D8 Engineer Review of Horizontal End Suction Pumps 60 60 233 23 -Apr -07 17 -Jul -07 A3008 A4040 Sub Venioaf f3Ti6`oh Veit eA�hr 1 , ; A3009 Procure and Deliver Horizontal End Suction Pumps 44 197 29 -San -07 30 -Mar -07 A1000 I 15 A3020 A3020 End P� t c �nrp ; Jliei f Vertical D' ron V ape Pgmps Dltl'vet Vertl Di r n V �'L- tPSruro A3014 Submit Vertical Diffusion Vnne Pumps 15 15 197 02 -AW -O7 20 -Apr -07 A3014 A3420,A4073 _ R c>ue and _ -"" - "" A3015 Engineer Review of Vertical Diffusion Vane Pumps 60 60 197 23 -Apt -07 17 -Jul -07 A3015 r "" SO 1 ps Sul)En a A302o Procure and Deliver Vertical Diffusion Vane Pumps 44 230 29 -Jan -07 30 -Mar -07 A1000 A3D26 A ie f Subtriersib(e I!uwpa : ; ett, p A3025 Submit Submersible Pumps 15 15 230 02 -Apr -07 20 -Apr -07 �: A3025 111 A3027 A3490, A4006n(na f edC:end DeRv Sufnrr'ersiblelPurlrps I, - - - t -s' --"'"'-'-•-^-- "-'•--- _f - ---•t; l •TASK A3026 Engineer Review of Submersible Pumps 40 40 230 23•Apr-07 18-]m-07 A3026 { Subwt9 Io,�umP and SewagF?tmrpsl • A3027 Procure and Deliver Submersible Pumps 44 44 230 29 -Jan -07 30 -Mar -07 A1000 1) A3D33 filter All Activities A3032 Submit Submersible SUMP and Sewage Pampa Page 1 of 10 ® Primavera Systems, Inc. Remaining Work iral Rema Actual IWork � Cnt 9 r ; L� Remaining Work 1 1 029- (A) ce, a AZUSA INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES �Y DATE: MARCH 26, 2007 U SUBJECT: WATER COST OF SERVICE STUDY/ RATE ADJUSTMENT UPDATE In December 2006, Azusa Light & Water issued $54.85 million in debt in the form of revenue bonds to pay for various required water utility infrastructure, including the new water treatment plant, transmission lines, reservoirs, and some water main replacement projects. Prior to the issuance of debt, a financial plan was adopted by the Utility Board in October 2006, which authorized staff to pursue debt repayment with a series of water rate adjustments commencing with one effective July 1, 2007, subject to review by a third party consultant on the need for such rate increases. Hence, on January 22, 2007, a consultant proposal was approved by the Utility Board to independently verify the revenue requirement for the water utility over the next five years in light of the recently issued debt, and to assess the level of required water rate adjustments. Based on preliminary results of the study, it does appears that staff's previous forecast of a required rate adjustment biennially beginning July 1, 2007, is warranted, and that the biennial adjustments will be around 5% over the next 5 years. One additional aspect reviewed by the consultant was to consider adding a third tier to our water rate structure. Currently, our water rate structure is based on a meter charge which is fixed based on meter size, and a two tiered water usage fee for consumption. Adding a third tier fee for water usage would increase rates for higher water users, and would likely induce more water conservation, while at the same time reduce the amount of the rate increase for lower water consumers. A public hearing is being scheduled for June 4, 2007, and notifications will be mailed to property owners 45 days in advance of the meeting to fulfill Prop 218 requirements. Another report will be provided to the Utility Board at its April meeting to present the consultant's cost of service study, specific recommendations and potential rate impacts. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities 030 1 C-3 Azusa Utility Board Meeting March 26, 2007 031 Power Resources Division Monthly Report Power Resource Update ■ Power Consumption Comparison ■ Wholesale Market Trend ■ Power Resource Budget Update ■ Additional Updates ■ San Juan Environmental Project Update 032 Power Resource Update ■ Discussions continued with renewable energy providers for windpower and small hydro generation. Staff will provide a briefing to the Board in April for guidance/direction and if applicable contract approval in May timeframe ■ Leading the effort of SCPPA Cities to procure additional generation capacity to meet the additional CAISO reliability requirement in 2008. An RFP through SCPPA was issued on March 22, responses are due on April 12 ■ Participated in further CAISO market redesign training ■ Finalized the power resource operational planning for summer 2007. The load and resource balance remains very tight for Southern California and we are ramping up customer education on energy conservation ■ Monitoring closely the development of Greenhouse Gas issues at California Energy Commission (CEC) and California Air Resources Board (CARB). Staff will provide a briefing to the Board in April 033 034 CITY OF AZUSA ENERGY CONSUMPTION COMPARISON E4ERGY00NSLWP710NIN MJ/H. .. PERCENT ., MDN M FY 05-06 FY 06-07 C?VNCf . Jll 75.839 9,287 13.34% i AAMC 76.758-V6% - -3.16%_ SEP _ . ._. 2Z725 24.379 7.3i% OCT - 21.746 .. 21.700 .. -021% NDV _.. .. 31:458 _ i 258% ... .DEC. ..... _... ..19.942•. 9.163 .. j. 20,570 1.72% JAN 20.J0 .... _:_ __ .. _3:904_18:414 .. .. _ ...4.%%.. ,... . _ _.... FEB _...._._ 18.7 0.09% KIAR. .. .. M,125 _ _ _' -100.00% APR .... .. NAY 21.021. -100.00% JUN _ 21.585 -100.0D% ......... TOTAL 2W.184 187.642 327% CITY OF AZUSA PEAK DEMAND COMPARISON . - - PERCENT MONTH FY05-06 FYD"7 CFUINW . JLL 57A 60.8 5.78% • AUG 57.9 552 4.66% SEP54.9 63.7 16.00% OCT - 48.0 43.9 -8.41 NOV _ _.......41:1 JAN 349 36.8 .. 5.83%......_ 0.91% MARI 958-___.-.r_�.__._.___....__.. -100.00% I -100.00% 35.9 -.__�--_____. _--_ MAY 458.. . _!_ _ .... _._ .. JUN 59.1 PEAK DEMAM N MN 034 WHOLESALE ELECTRICITY SPOT MARKET PRICES IN CALIFORNIA .....AV MONTH ON PE AVERAGE _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 O6 $47.68 - $35.03 . _NOV06._., ..;.. ..$53.55_. _ DEC 06 $53.75 _ .$41.34 .. $44.63 _......._._._JAN 07 - $53.46 $44.36....._. $58.45 $47.79 ALL PRICES N. $/MWH 035` Power Resource Cost Accounting FY '06-07' LONGTERM SNORTTERM TRPNSMSSOJN PNCILLNTY T �AC ING TO7PL �- NEIOLESAJ,E� NR LO61G SERMCE COSTS OISPATCHINGCL6R� COSTS i REIENUES CC615 M316M WNAiPC75 PURCHASES m 1182.75152 2AMM59LI 9>95BA5 69.562AB _ M.1S JS 3,926.392551__ _ -, IuQUB 11]Cb1023 1,BU 35923 25001651 .- 1696728, -. 28,929J9 3AIOb82b1 1185.194 B0 186063182 ..251071.M -... 1120D 63 Z.4M26 333590182 23260.16 28]0,36582 (19R.J1I83) 1,95360J92i (1806,]51.0.5) 1,805910761 (1652As198) 18B296B.BB–!I (1,63 Al) 1rzi16151( O 6 117359919 1.52)9062] 23057037 702395 Nw06 12 n49B 1801 J5016 22722081 J9B125 228]556 2.99J,O1022 2.03)919AD _ (1291.751.32) 1 ]05,31880 (1A3B282B7) 1,39BS90A31 1.1n.1 1,553)SJ 235901.82 790180.. -_ 3 "7 11>9916Ds Balbea 77 49777991 29,993 DD _— 21869.99}44'''' 28.52099+. 2.330,3]398 (ex.rza5o 16115J9A8{ s9>917A2 231718.31 2D000 OD 9526991 1881969.62 (69810A 1,35C_95938.1 "- Feb -0] 1696.]6766 ..._ _ Mor -0747 �_ I _.— _ 0.00 - D AO117 m TO7PL 49 a0795067i 51266769abB( 51865806191 315»86631. 5208b528A1 423767,00912 ($10861,]8150) 51269929]92 �1) INCLUDES SCPPALDNGTERMCWLRICIS NISHOHTTEAMIPURCN/uES FOF HEDGINq LOi_U_fl61N6LING PURPOSES RPA LAPILf(Y (2), .INCLUDES (3) INCLUDESALL GHORTTERMPMO Ld4G lAN43MSSION LOI4IRAGTCDST3 .._ i – �-+' 6) _7-- -LO515 CN^AGm BV CNJFORNIAINOEPENDEN7SYSIET4LP61ATLR WRSV"IEMRELIeILT'PVNLRONS -- - - _ (5' _yMCLUDES CO515 FOR SCHEDUUNGMID DISPATCHINGOFELECIRILT' __ __,_ _ I _ _ - i (n N11O1E:PLE REIENUES DERf1£D FgOMSP1ES OFOCE35 PONIIi Pro BENEFR3 - I I4 (B) DIFFEAEIILEOF{){MIDI: ]]11I ..- 6 - -- -_. _ i on. Jan Juan Procurement Polic ■ In January, the Utility Board approved San Juan outage insurance policy subject to a cap of .$250,000 for the insurance premium ■ In recent days, the insurance premium has fallen below $250,000 ■ However, San Juan unit continues to perform superbly in recent months and wholesale electricity market remains stable ■ Staff is continuing to defer the insurance policy purchase at this time but closely monitoring the San Juan performance and the wholesale market trend 03-7. Update on Selection of Real time Scheduling Services Agent ■ Since the January update to the Board, staff conducted additional extensive interviews with short listed scheduling services provider including: Salt River Project, the City of Riverside, and ACES Power Marketing ■ Staff intends to seek Utility Board' approval of the final selection in April San Juan Environmental Project Update ■ The cost of Environmental Project is facing upward pressure, and a 20% overrun in costs is currently anticipated by the project manager (Public Service Company of New Mexico, PNM). Cost overruns are caused by the escalating labor and construction costs. ■ Latest Environmental Project report from PNM Adobe Acrobat 7.0 Document 1. 034 INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: MARCH 26, 2007 SUBJECT: WORK PLAN UPDATE REPORT/ GANTT CHARTS This report is written to clarify staff understanding regarding the Utilities Gantt Chart Work Plans and to gather any comments that the Utility Board may wish to provide at the Board meeting regarding the Gantt charts. For the past few years, the Utilities Department has endeavored to provide quarterly reports to the Utility Board on projects being carried out by various divisions. The reporting format used for this purpose has been the Gantt chart (sample attached). During last month's Utility Board meeting, questions arose about some project schedules not being updated and why no explanations were provided about the apparent lack of progress on some projects. Staff will follow-up on the Board's suggestion to make comments about certain projects if they lack progress and will likely do so directly on the Gantt in either a notes column or comment near the Project name. Staff will also provide a "table of contents" as part of the cover sheet for easy reference. Staff would also like the flexibility to update project schedules to reflect changed circumstances, and to add or delete certain projects from the work plan if circumstances change, for instance, if work load is altered, or if priorities or resources change. If projects are added or deleted, the Utility Board may want to advise staff as to whether such changes should be noted in a cover report. While these quarterly reports have been referred to as the Utilities Department "Work Plan," the Gantt charts do not cover all work performed by utilities staff. We seek your input as to whether the revised format meets your needs. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities `IH GanttChart.pdf UTILITIES DEPARTMENT WORK PLAN FOR FY 2006-2007 PROJECTS �des".ihere is a wry high values of resources depending on Ne became avallable recenWor FY 05M`VVh U wil serve as 01e formdalion for IM shudles. Progress should be n Q „M2 led: MIMT C-5 AZUSA INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES V N DATE: MARCH 26, 2007 SUBJECT: LEGISLATIVE OVERVIEW/ UPDATE Azusa Light & Water is often impacted by legislation and regulations at both the State and Federal levels. The Utilities Department keeps abreast of legislation by participating in membership associations, namely, the California Municipal Utilities Association (CMUA), the Southern California Public Power Authority (SCPPA), and the American Public Power Association (APPA). The state legislative calendar recently began, and the CMUA Legislative Committee met via conference call and discussed the attached list of bills introduced by State Legislators. Since it is early in the legislative session most positions taken by the Committee were "Watch," meaning that CMUA staff will monitor the legislation to see if any language changes are made to the bill which impact publicly owned utilities. Obviously, if bills become of interest to Azusa Light & Water, or go against our interests, the Utility Board may be asked to take certain positions on the bills and authorize staff to advocate the adopted position. Usually, because our staff size, we prioritize our time to focus on bills that have a direct measurable effect on our Utility. If necessary, we will send policy letters advocating our position to legislators carrying the bills, our local representatives, and/or committees hearing the bills. The State legislative session usually ends in September, and it is usually near the middle of the session when taking policy positions and advocacy become more critical. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities I RK CMUA Leg Rpt.doc 042 March 1, 2007 TO: Heads of Utilities, and CMUA Legislative Committee Members SUBJECT: NEW POSITIONS —February 28`" Meeting 043 ME CA AB 532' 'State Property SolarFnergy y 02/21/2007:' Wolk (D) _ Requires the Department of Geheral Services to ensure that solar energy • INTRODUCED, egwpment-is Installed on all state liuiltlmg :and state parking facilities as well as rc satekopated swimming pools that are heated with.fossil fuels or electricity y p as s regarding therequirement that solar energy, equipment be installed as partof , r x x r� construction,of such facilities=� k A'ARRUt� TOSITJON SNATCH GA am(D 33 41 Eocal P wn d! IE 6&rfc Utilitaes x ku�< j s ,r k INTRODUCED.-,1102/2112557.77T79 Proh{bitsthe`Public Utihfies Commission from imposing- cost responsitidity 4 � a � sur6harge"on acustomer pHA loddVlti blibly o nw ed electric utiIity'of the customer sr > �s y.c a +...+Z. ! a§�» e* rix. r L F" Y[ °B ', a �Sennce toea`Eion has trot }3rewobsly received service from an electrical corporation ; K *' +.' t ks a..t x' W a..,o.< r Lporif the customer s'ernce tocation is w thin the service territory of an irrigation 6 dlStrlCtmeeting certain,requlrementS �� rPOSlTJON MATCH �+ U. w s CA AB 559 rs +PuliUc Wat System 0221/2tl07 F3,uskm (Dj � ,Rebates to C mprehens vee',Safe Drjnking Water Plan Reduces the risk from iN?RODucED rty , ,¢ t waterboryellnesses caused by cryptosporidium and giardia Requires the n vt��iDe artmerit of Public Health to identify treatrnent methods technolo les and �a.� 3 1h ibl i ^LM'&dt 'e -et h g r . - TSc ice} + �othgr ma e`ent op ions that (educe o� el inmate the need to add disinfectants s>��vr iofbatlditiVi@s,IO Inn -4,wat�ee'?$,s`C° rC 4�AB 5�64',,W BtJifdingStandards Carbon NeutralBuildmgs ,z ds tv� ,3 vzir2oo7 jBrownley (D);,=� States the,intent of tf~leiegislatur`a to enact egislation io require' le State Energy INTRODUCED `i( Y -S- •• M'a c- m.^F "' 1, �,,,,:. t.JAL at i fml. 4' •u sr: �t6a e' i a Resources Conservation and DevelopmentCommiss7on to adopt carbon neutral, re --w rl buJldmg standardsS; forY-,xne�w,re,sidential anted news r � nresidential„liuildi�ngs POSITION WATCH, CA`AB 566 Water Cons`enration yF xa 02121/2007 Plescia (R) "� Relates to a model I5Caltwater eff jancdi Requires the model INTRODUCED l ;x ° ordinance to mcludebf mate lnformat on<for irn -tion schedulin based ori the 1rr�ationManagement Information Systefn t, K Y a rt P'OSITJONIIrATCH1COMMEE�tr�r * r tar, CA AB 578 Friergy Renewable Ederg�rGeneratwn Study,TMVs w Yov2w2oo7 Blakeslee (R) ffequires the EnergyrREsources Conservation and De�elopment'Commission to ..'NTRODUCED x q } tiudy and§subrraitza repo to the egislature and the 6 vernor on the impacts of �_ ,renewable energy gerteiatw00 ottThe states distribuhpn,and transmission grid g -xUSlTION FAVOR.. t�^ �` e�E �t "% ".v - 11 CA AB 592=`777 Z Wate771 r Reple sh mpsiDistct jil'ssessment + x otizv2oo_ D all D� INTRODUCED d eCto s of�'Water�ep7 n s e t d stri-' upon making'aiprescebed rd of `4 j, ; >, t� -{�` � determinatwn thaftunas stiallibe raised to�purchase water�for replerlsYlmenl to �' F ,, ,r �a� '�+�� publlsh�a'rioiice that`` ��ublic he8ring wiflTbeheld on the third Tuesday in April to ry�r a defeYm r1e'`to what ekteni,those costs for the ensuing year will be paid for by ,�x�.x" � means ofkimposing=a water replehishmenf assessment CA AB593 ` • Vyater Repleiaishment District rAssessmeiat _ ? � - t x ov2v2oo7 it DymaUy, (Dj,M Relates to the Water Replenishment District Aci which requires fhe hoard, of •INTRODUCED lY, ! 1 ' Y^egti sit '-p k c�iectbrs of awaer ra p�enshmet tdistnct to publish aohce that;- public hearing x, r will fie held on the 2a'd fTvesday tri April to d etermme'to what eictent those costs .nr a1 4 "for the ensuing yearfwill beypa d forrby means of imposing a water repl`enist5ment 4 t r' F' lassessment*-Changes thedate for the public (tearing to the 3rdfT:Uesday 1ri'Flpril !:� 'q, POSITION' WATCH, �r CA AB 609 <' State 6uil^gcoi�struuckion Energy Con4ersion o2i2v2oo7r Eng (flj r q Winds the5tate Buildiing;�Construction Act which authorizes the State Public INTRooucED! .."cam{ � Works Board td BcgUi�., <o engage in the construction of, cogeneration service eqptkhe^equipment, conser5ation measures or,energy • Y cont;actsto- e o be anticipatedto`provitle c"osis to tF a state`within l5 eats: 4 `trPOSIT/ON AiIATCH `" r y - -2z� V ' i � tam, �� i � 4 �:_✓ h tl .. � _ 046 047 �m :eon'_, CE§'A'N`br A IATE - : . I I es on' n Ibt If 101/25/2007,(, I.... .. ... d,by,'the -voters ; -T- 6��S§NLA,Tff he issuance rl jram, t dornmfie6'on; i 4t-,;JNAT d i t 1 I j- X0201/2007' Senate Local Enacislthe 'F f vvjflclvW h ould,valiclatethe.org o E GovernRlemM el on L A b n boundaries-:acts,-ei'd-ing' . — I s. and bqhds,of;the,-staWand�coun les, Committee e6i&d diil&iGOVERNMENT qeric!6.9�,.andi-entitiesr-,;W ;0-- POSITION SUPPORT Y CA SB 142 s 02/0112007: V Ati Seh9l hl would validatb the organization, ij'6 9NATE. 0, Com m-, me'e'on LOCAL Governn U tateiand .counties , cities and GOVERNMENT 0 IL+�',�%. ��s tea" ��` u ... a�'"- I T o�)6i)�067:I, w�. of time an- 'i Comfbittee.on LOCAL, h 3nt to codify t e,'.GOVERNMENT. . ?r Di'stiict (206). T 6C& 1 A�= ml mum I 5 facilitate gto'bnidw'afe�r :)nal water supplies Jes. A egarding the siting and 62121/2007.- .and'.b6WlopnIeht IINTRODUCEb. . nsumer based program to no dgietjhdstributed m.reg'ardin'g dwardin ,s after1'166eiviii66eivinq the request A bu'&E'D, t egarding the siting and [d.'endctJ&gslation to facilitate cooperation IINTRODUCEb. �r districts to,establish community walking Derty'and,to init the liability of a water district bu'&E'D, t [d.'endctJ&gslation to facilitate cooperation IINTRODUCEb. �r districts to,establish community walking Derty'and,to init the liability of a water district t of ng of access to district property stained by a separate local government 0 051 rINt+gi'^154�[ ' �" ✓i R Vb R� 1 '� nKrpq.wPfFu�'�(y'L� V 1'J9+�+"Yf �f j�FXl tl"ej.4 �f VG f. fY Y9... "Az'y]adi t4kyP�lr rkrShb Jyf ✓1 }f T tf £ y.'ApF', .�'iLI�'�tY'!} _,dtl yy4 f_vY -E �p �ih# .v_�5M] 1 �� I' i k Y. 1 .i F,i m tl vim tY vp � �, I u i 4 w t�L.46a^'1' `'" `.'k. s t L J ?° + q '+ All � A � J lil n I, R l i l l Ilr„ ISI 11 IIh J: map,S 5 t+ 4t -� _ � B [S .Y 31 a[h Ar a� �^t 1 r td r �'y�x x✓� tlMn 1 rdlp a7 S i rr �A �r ,�{y�z`�"e�'�,,YY,¢eYa-�'^{y1',�.�'�-ky •. r�,M1"f�§uµTtM 5".{G'4yiy4�.'YI,AC�YY�P.'.-?tA��%'fYl/{, San Juan Generating Station Environmental Systems Upgrade Project Status Report Number 16 — March 2007 March 19, 2007 Continuous Opacity Monitoring System (COMS) PNM intends to relocate the existing continuous opacity monitoring systems (COMS), which are located in the unit stacks, to an area between the outlet of the bag house and the scrubbers. The new location will eliminate water vapor interference with the opacity readings. The Consent Decree requires approval by the U.S. Environmental Protection Agency (EPA). PNM submitted a request to the EPA in June 2006 requesting permission to use an alternate duct location for the COMS. In mid-December, the EPA notified PNM that the proposed COMS relocation site for Units 1, 2, 3, and 4 does not meet the applicable COMS monitor location specifications of NSPS Part 60, Appendix B. The EPA noted that PNM may resubmit a request for approval if it can demonstrate compliance with NSPS COMS certification requirements using the alternative location and light beam path certification described at 40 CPR Part 60, Appendix B, PS No.I at Section 8.1(2)(iii). PNM is drafting and alternative monitoring plan for submission to the EPA in mid-March. Prior to submitting an alternative monitoring plan, PNM will, be meeting with EPA Region 6 personnel in Dallas, Texas on March 22, 2007. Contract Status PNM and B&W met on March 7h and 8`" to discuss Units 1 &2 costs. PNM directed B&W to issue several purchase orders for bag house components, the ACI system and the ash handling system in order to firm pricing and reduce the contract contingency. The end of March is the target to complete the Units 1&2 B&W contract. PNM's Supply Chain is continuing to develop a contract for long term supply of DBA. This will be an Operations contract. PNM is developing a request for proposals to purchase powdered activated carbon (ACI). Engineering Status • Boiler Transient Study — Final TRAX modeling for Units 3&4 has resumed. The TRAX report is due in early April. The final report will include logic diagrams and the results of modeling runs. This report will be included in the white paper Sargent & Lundy (S&L) will prepare for presentation to FM Global. S&L will be contracting with Foster Wheeler to do the Units 1 &2 boiler structural analysis. B&W has issued a purchase order to TRAX for the Units 1&2 implosion modeling. • Design of lower support steel for Unit 3 flues has been completed. • Engineering and design work continued on the burners and OFA systems for Units 3&4. A review of the NOx port locations and wind box modifications along with the redesign of the feeder ducts to the NOx compartment has begun. • Units 3&4 cage and tube sheet samples were reviewed approved and sent to Gutsche for fit - up inspection. • Units 3&4 baghouse bypass dampers were approved and released for construction. • Unit 3 flow model study with NELS is complete and the ACI injection port has been relocated based on the latest results. The final report is in the process of being written. • Turning vane recommendations from the NELS study have been incorporated into duct design for Units 3&4. • The electrical control system architecture between the baghouse, ACI System and the Ash Handling System was completed. • Specifications for the baghouse PLC are complete. • Equipment and instrument tagging nomenclature for the ASH and ACI systems has been finalized. • The RATA test port locations for Unit 4 were finalized. • The conformed specification (Rev 5) for the ACI system for Units 3&4 was released. • The Unit 4 carbon injection line route from the tank silo to the spray headers has been determined. • Reviewed and approved vendor submitted drawings for the ACI, Ash Handling & Pulse Header systems. Released the vendors for manufacturing on certain items that have been approved. • Pulse Jet Fabric Filter hopper fire safety protocol was developed. An automated knife gate valve, which initially will only be used for maintenance (i.e., activated by operating manual override), will replace the manual knife gate valve. • The P&IDs for Units 3&4 baghouse were updated. • Atlas Copco has notified PNM of delays in delivery of the Units 3&4 rotary screw compressors of up to two months. PNM Supply Chain is working to improve delivery dates to May 2007. • Units 3&4 electrical design work is in progress. • Ash Handling: Erection drawings have been released. B&W will address hopper fire concerns through addition of appropriate warning language in the O&M manuals. • Units 1 &2 demolition planning and structural work is in progress. • A schedule meeting was held in Barberton to review progress of the Units 1 &2 baghouse and flue materials. There appears to be little conflict between design, procurement, and construction at this time. • Unit 4 Structural Work - Handrail and retaining wall details for Unit 4 baghouse area were issued. • Unit 3 Structural Work - Unit 3 ACI structural steel utility bridge details were issued. • Unit 3 Civil Sitework - Reevaluating options for truck access through the baghouse and duct area at the south end of Unit 3. • Unit 3&Unit 4 Chimney Modifications - Completed review of Preliminary details for the chimney liner liquid collection systems. • Unit 3&4 Compressor Equipment Foundation - Final design of foundation pads and a roof hatch has been initiated. • Unit 1 &2 Demolition - Continued work on preparation of demolition planning drawings to document the structures slated for demolition on Unit 1&2. • Unit 1 &2 Structural Work - Received not to exceed column reactions for the Unit 1 baghouse and initiated preparation of foundation design. • Electrical and I&C Design - Ash Handling PLC Architecture Block Diagrams were reviewed. • Vendor Drawing Review - The following vendor drawings were reviewed for the ash handling system for Units 3 and 4: Electrical wiring diagrams for the main control panel, ash handling remote UO cabinet, and air lock level switches; control panel arrangement for the ash handling main logic cabinet, and remote UO cabinet; wiring diagrams for the remote UO cabinet; the PLC Block diagram for the Unit 3 and 4 ash handling system; ash handling instrument list and ash handling system P&IDs. • Reviewed Lighter & Scanner system drawings submitted by B&W/FPS. B&W/FPS drawings are being marked up to indicate the cable references to these drawings so that these drawings can be used as installation drawings by Electrical contractor. • Reviewed ACI system Electrical drawings, P&IDs, System communication, MCCs, Shick control panel schematics, PLC Panel/I/O schematics, Panel layout, and preliminary description of operation of the ACI system. • Investigated the possible use of eight input temperature transmitter utilizing Foundation Fieldbus protocol to communicate with the Foxboro I/A system for new additional boiler related thermocouples. • Scope was defined for the installation of the new CEMS equipment for _Unit 3&4 and Unit 1 &2. • Issued Unit 3&4 ACI motor control specification for bids. • S&L balance of plant engineering progress is: S&L Detailed Design Progress Thr ou h February 2007 Percentage Complete Unit 4 45% Unit 3 27% Units 3&4 Common 23% Unit 2 4% Unit 1 4% Units 1&2 Common 2% Overall 34% Construction Status SAFETY: 164,302 Man hours worked through March 9, 2007. Recent incident — A boilermaker developed a sore -back after lifting a scaffold board. There are no OSHA recordables to date. The 250,000 safe man-hour luncheon is scheduled for May 4, 2007. DBA System: Commissioning has restarted. The facility is expected to be turned over to Operations the week of March 19`h Flues: Sections 1 and 3 modularization is complete and awaiting insulation installation. Attachment steel for walkways and other ports are still needed. Section 2 is being modularized on table 7. The unit 4 lower flue support steel is complete. All of the steel is hung, the bolts inserted and tightened. Upper flue support steel erection is complete up to the inlet flue and will continue following the installation of section 1. The insulation contractor began installing stand-offs on the section 1 and 3 inlet flues. • Baghouse: The Unit 3 support steel erection is complete. Upper Bag House support steel is being erected. Bolt insertion and tightening is underway. Modularization of Unit 3 hoppers is 57.7 percent complete. Five hoppers are complete and two more are being modularized. Unit 3 compartment walls are 13.4 percent complete. All ten Unit 4 hoppers are installed. Compartments 4A 1 and 4B 1 are erected on the support grid and welded out. Compartments 4A3 and 4B3 are currently being modularized on table 5. Compartment 4A5 is being modularized on table 6. • Inlet manifold nozzles are being fabricated; the first nozzle was set the week of March 12`h (without dampers) and the second is being modularized at table 6. • Ash Handling: The first erection drawings have been released. Review of controls integration into the Plant DCS is underway. • Booster Fans: Next motor will be shipped from Electric Machinery on March 30. It will be installed on Unit 4 and the motor removed from that cell will be sent to Electric machinery for re -wind. • Insulation: The insulation contractor (API) began to mobilizing the week of March 12`h and is erecting a fabrication tent south of the Unit 3 cooling tower. Work Force: B&W Supervision 10 Craft 150 Expenditures Westates MJ Electric 16 10 Total project expenditures through February 28, 2007 are approximately $31.3 million. Expenditures by CBI are included as Attachment 2. 4 Ja 016M�� Inlet flu duct modularization. Inlet flue ducts staged for installation of insulation and lagging. ANN q Unit 3 bag house hoppers ready to be set on support structure. Attachment 2 Project Cost Summary San Juan Environmental Project Expenditures Through February 2007 CBI Description P CBI Approved Amount Expenditures March 16, 2007 Unit 1 Neural Net . $471,459 $369,972 Unit 2 Neural Net $471,459 $355,571 Unit 3 Stand Alone $67,946,511 $6,260,387 Unit 4 Stand Alone $68,174,686 $14,351,717 Unit 3&4 Common $5,122,940 $3,548,726 Preliminary Engineering & Permitting $2,057,452 $4,560,990 Dibasic Acid System $1,029,294 $1,740,386 Unit I Stand Alone $298,984 $42,389 Unit 2 Stand Alone $298,984 $32,525 Project Total Through February 2007 $31,262,663