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AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER MAY 28,2013
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA, CA 91702
AZUSA UTILITY BOARD
URIEL E. MACIAS
CHAIRPERSON
ROBERT GONZALES JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
EDWARD J. ALVAREZ ANGEL CARRILLO
BOARD MEMBER BOARD MEMBER
6:3() P.M. Convene to Regular Meeting of the Azusa Utility Board
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION
1. (Person/Group shall be allowed to speak without interruption up to five (5) minutes maximum time,
subject to compliance with applicable meeting rules. Questions to the speaker or responses to the
speaker's questions or comments shall be handled after the speaker has completed his/her
comments. Public Participation will be limited to sixty (60) minutes time.)
B. UTILITIES DIRECTOR COMMENTS
C. UTILITY BOARD MEMBER COMMENTS
1
D. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or
Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under
SPECIAL CALL ITEMS.
1. Minutes. Recommendation: Approve minutes of regular meeting on April 22, 2013 as written.
2. Approval of Grant of Easements from Various Property Owners in Rosedale Development.
Recommendation: Approve the following resolutions accepting Grants of Easements for the subject
locations, and authorize the City Clerk to file them in the Office of the Los Angeles County Recorder.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF. (Bharatbhai and Harsha Intwala, Lot 28 Tract 54057-8 Greenbriar).
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF. (Brookfield Rosedale 67, LLC, Lots 13-15 Tract 66141 Palmetto).
3. Acceptance of Grant of Easement from Michael and Amy Zhou Harger. Recommendation:
Approve the following resolution accepting Grant of Easement for the subject locations, and authorize
the City Clerk to file them in the Office of the Los Angeles County Recorder. In addition, instruct the
City Clerk to retract Resolution No. 13-C16 approved at the March 25, 2013 Utility Board Meeting.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING A CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF. (Michael and Amy Zhou Harger, Lot 37, Tract 54057-14 Heritage Oaks).
4. Approval of Proposal by SA Associates and Award of Professional Services Agreement for
Electric Inspection Services at Rosedale Subdivision. Recommendation: 1) Approve the proposal
by SA Associates for performing electric substructures inspection services at Rosedale Subdivision;
and 2) authorize the Director of Utilities to sign the Professional Services Agreement subject to review
by legal counsel.
5. Approval of License and Consulting Services Agreement with Power Settlements Consulting and
Software, LLC. Recommendation: 1) Approve the License and Consulting Service Agreement with
Power Settlements Consulting and Software, LLC; and 2) authorize the Director of Utilities to execute
the agreement.
E. SCHEDULED ITEMS
1. Approval of Memorandum of Understanding with San Gabriel Valley Municipal Water District
to Manage Water and Electric Power Generation Operations. Recommendation: 1) Approve the
Memorandum of Understanding ("MOU") with the San Gabriel Valley Municipal Water District
(District) to jointly manage the water and electric generation operations this summer; and 2) authorize
the Director of Utilities to execute the MOU following City Attorney approval.
2
2. Clarification of Language of Azusa's Phase I/Phase II Water Conservation Measures Regarding
Fountains. Recommendation: approve a clarification that a recirculating pump complies with Phase I
Water Conservation Measure 12 (Section 78-504, Subsection (a) (12).
F. STAFF REPORTS/COMMUNICATIONS
1. California Municipal Utilities Association (CMUA) Legislative Update
2. Third Quarter Report for Water and Electric Funds for FY 2012-2013
3. State Review of Azusa's Recycling Programs
4. Residential Energy Efficiency Rebates Program Update
5. Utility Low Income Assistance Programs
6. "Round-Up"Type Program Evaluation
7. Past Drought Patrol Statistics
8. Azusa Light& Water FY 2013-2014 Budget
G. ADJOURNMENT
1. Adjournment.
"In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a
city meeting,please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the
meeting or time when special services are needed will assist staff in assuring that reasonable arrangements
can be made to provide access to the meeting."
"In compliance with Government Code Section 54957.5, agenda materials are available for inspection by
members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard,
Azusa City Library- 729 N. Dalton Avenue, and Azusa Light& Water-729 N.Azusa Avenue,Azusa CA."
3
APPROVED
Date
inn=
AZUSA ri
LIGNT & 'WATER
SCHEDULED ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T • SA UTILITY BOARD
FROM: GEORGE MORROW, DIRECTOR OF UTILITIES /10 /
10/
DATE: MAY 28, 2013
SUBJECT: CLARIFICATION OF LANGUAGE OF AZUSA'S PHASE I/PHASE II WATER
CONSERVATION MEASURES REGARDING FOUNTAINS
RECOMMENDATION
It is recommended that the Utility Board approve a clarification that a recirculating pump complies with
Phase I Water Conservation Measure 12(Section 78-504, Subsection(a)(12).
BACKGROUND
The City of Azusa Municipal Code Sec. 78-504 contains sections which address the conservation
measures to be taken by consumers when Phase I and subsequent Phases are instituted to conserve water
during a time of water shortage. Subsection (a) (12) states, "No water shall be used to clean, fill or
maintain levels in decorative fountains, ponds, lakes or other similar aesthetic structures, unless such
water is part of a recycling system."
A clarification of the language of Sec. 78-504, Subsection (a) (12), is necessary to avoid
misunderstandings and undue concerns of customers who read the Subsection. Decorative fountains,
ponds, and lakes are allowed with a recycling system, i.e. a "recirculating pump" system. A recirculating
pump optimizes the use of the fountain, pond, or lake, and minimizes the necessity for constant refilling.
Periodic cleaning is also allowed with use of a minimum amount of water. Care should be taken to
minimize splashing or spilling of water outside the containment side of the fountain, pond or lake.
FISCAL IMPACT
There is no direct fiscal impact associated with approving the clarifying language to Sec. 78-504,
Subsection(a)(12).
Prepared by:
Chet F. Anderson P.E., Assistant Director- Water Operations
064
-MUNICIPAL CODE
Chapter 78-UTILITIES
ARTICLE VI.-WATER
DIVISION 6.-CONSERVATION PLAN
Sec.78-504.-Phase I water shortage.
(a) A Phase I water shortage may be declared by the director of utilities if any combination of events or
factors threaten the adequacy of foreseeable water supply to consumers; qualifying factors to be
considered in making a water shortage declaration include,but are not limited to,time of year,local
rainfall, state water project allocations, safe yield as determined by the San Gabriel Basin
Watermaster,amount of runoff into the San Gabriel and Morris dams,ground water level in different
basins,especially the upper basin,and any major operating emergencies or natural disasters that
cause damage to the water supply or water distribution system. Prior to making a public
announcement of a Phase I water shortage,the director of utilities shall document the basis for the
water shortage declaration and communicate this information to the city manager and city council.
Under a declared Phase I water shortage, conservation measures listed in this section shall be
implemented.No water user within the city and the service area of the city's water utility shall knowingly
make, cause, use or permit the use of water for residential, commercial, industrial,agricultural or any
other purpose in a manner contrary to this division or in any amount in excess of that use permitted by the
conservation phases designated in this division. Mandatory water conservation measures shall be as
follows:
(1) No water user shall cause or permit excess runoff to occur from any hose,pipe,valve,faucet,
sprinkler or irrigation device onto any sidewalk,street or gutter or to otherwise escape from the
property if such flow or runoff can reasonably be prevented.
(2) If a break or leak occurs within the water user's plumbing or private distribution system,the leak
shall be repaired within 48 hours after the water user discovers the leak or after the water user
is notified of the leak.
(3) Commercial and noncommercial watering of grass, lawns, ground cover, open ground,
shrubbery,crops,gardens and trees,including agricultural irrigation,in a manner or to an extent
which allows excess runoff from the area being watered shall not be permitted.Runoff which is
a natural consequence of conservative watering, either by hand or mechanical sprinkling
facilities,is permitted so long as such runoff is not excess runoff as defined in section 78-501
(4) There shall be no lawn watering and landscape irrigation by residential water users between the
hours of 6:00 a.m.and 6:00 p.m.on any day of the week. If a hand-held hose with a positive
shutoff nozzle or drip irrigation system is used,watering may be done at any time.
(5) There shall be no lawn watering and landscape irrigation by commercial and public agency
water users between 10:00 a.m.and 6:00 p.m.on any day of the week,except that there shall
be no restriction of watering utilizing a hand held hose with a positive shutoff nozzle, drip
irrigation system,or system which uses reclaimed or recycled wastewater.
(6) There shall be no washing down of sidewalks,walkways,driveways,parking lots and all other
paved surfaces,except to alleviate immediate health,fire or sanitation hazards.
(7) Restaurants and food serving establishments shall only serve water to their customers upon
request of each customer,and shall not operate a water hose without a positive shutoff nozzle.
Restaurants and food serving establishments provided with public information by the city's
water utility about a water shortage shall post the information so that it is made available to
customers.
(8) It is unlawful to remove,replace,alter or damage any water meter or any components thereof,
including but not limited to the meter face,its dials or other water usage indicators and any flow-
restricting device installed.
Azusa,California,Code of Ordinances Page 1
065
- MUNICIPAL CODE
Chapter 78- UTILITIES
ARTICLE VI. -WATER
DIVISION 6. -CONSERVATION PLAN
(9) Water from fire hydrants shall not be used for any purpose other than to fight fires or for other
activities where such use is immediately necessary to maintain the health, safety and welfare of
the residents of the city and customers of the city water utility. Metered water use for control of
dust and at construction sites shall be considered necessary to maintain health and safety and
are eligible uses of water from fire hydrants.
(10) Schools, golf courses, governmental agencies, city parks and cemeteries, public or private, are
required to reduce the amount of water used for irrigation purposes to levels sufficient to
maintain plant life or public use thereof. Excessive use of irrigation systems for long periods of
time is prohibited and may be determined by the frequency and duration of irrigation activity,
water saturated or overly soft turfs, lawns, and soils, or pooling of water on turfs, lawns, or soils.
Water users under this section may be required to submit a copy of a water conservation plan
and landscape irrigation schedules.
(11) Washing of motor vehicles, trailers, boats and other types of equipment shall be done only with
a hand-held bucket or a hose equipped with a positive shutoff nozzle for quick rinse, except that
washing may be done with reclaimed wastewater or by a commercial car wash using recycled
water. No excess runoff shall result from such activities as defined in section 78-501
IL islc v,Gtei shG,. Oe uses iu deaf,,, ievels in cecoiaL,,ve fountains, ponos, iaKes or
other E�^nilar aes„hP+i . structures ;Fess such water is part of a r -7ycling system.
(13) The filling or replenishment of swimming pools shall be permitted, but the property owner will be
liable for possible charges in the event a Phase II, III or Phase IV drought is declared.
(14) The owner and operator of every hotel, motel, inn, guest house and short-term commercial
lodging shall post a notice of water shortage and any necessary compliance measures.
(b) Azusa Light and Water shall publish the declaration of a Phase I water shortage in a local newspaper
of general circulation.
(Ord. No. 08-06, § 2, 6-16-08)
Azusa, California, Code of Ordinances Page 2
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Information Item
Presented s a-� �v 3 '•
1 1
AZUSA
tiGHT . WATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MAY 28, 2013
SUBJECT: CALIFORNIA MUNICIPAL UTILITIES ASSOCIATION (CMUA)
LEGISLATIVE UPDATE
California Municipal Utilities Association (CMUA) was formed in 1932 and incorporated in
1933 to protect the interests of California's consumer-owned utilities, including Azusa Light &
Water. CMUA represents its members' interests on energy and water issues before the California
Legislature, the Governor's Office, and different regulatory bodies, such as the California
Energy Commission, the California Air Resources Board, the Department of Water Resources,
the California Independent System Operator, and the State Water Resources Control Board.
A summary of key water and energy bills and CMUA's respective standing are outlined in
attached Legislative Update for the month of May.
Recently, Azusa Light & Water sent attached letter on AB 145 "Oppose Unless Amended" to
Assembly Member Henry Perea regarding his bill on the proposed measure that moves the
Drinking Water Program from the Department of Health to the State Water Resources Control
Board. This move is vehemently opposed by the municipal water community. This bill was
referred to the Appropriations Committee on May 15.
Prepared by: Liza Cawte, Senior Administrative Technician
Attachment: CMUA Legislative Update, AB 145 (Perea) "Oppose Unless Amended" Letter
067
pp1A M°'up CM UA May 14,2013+www.cmua.org
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May Revise
The Governor's May Revision to the state budget was released this morning projecting increased state revenues totaling
$2.8 billion dollars. According to the May Revise Summary,the Governor's Revise included the following changes:
Prop.39 Implementation
The Governor addressed concerns raised about the capabilities of local education agencies to initiate and complete Prop.
39 projects by increasing the California Energy Commission's budget by$4 million for the Energy Resources Programs
Account,to add eight additional positions to provide technical assistance to small local education agencies.The Commission
will help identify cost-effective energy savings opportunities for K-12 school facilities,and provide guidance on establishing
baseline and tracking performance.
Drinking Water Program
The May Revise did not include a reorganization proposal for the CDPH Drinking Water Program. The Brown Administration
is reportedly still analyzing its options. CMUA is opposing moving the Drinking Water Program to the State Water Resources
Control Board,which is an option under consideration by the Legislature(AB 145 Perea).
Cap and Trade investment Plan
The May Revise did not include a Cap and Trade revenues expenditure plan,Instead the May Revise proposes to loan cap
and trade revenues to the General Fund this year while CARB works on the investment plan.
Water Update
Senate Informational Healing on Drinking Water SRF
On May 15,the Senate Environmental Quality Committee will hold an information hearing on the Safe Drinking Water
State Revolving Fund and why the California Department of Public Health has a large unspent balance($455 as of
October 2012)in the US Treasury, The Legislative Analyst's Office will also participate and is expected to discuss its
recommendation to transfer the entire CDPH Drinking Water Program to the State Water Resources Control Board.
CMUA and ACWA will testify as the primary witnesses for the water community.
AB 823(Eggman)CEQA Mitigation Requirements-Oppose(Two-year Bill)
The measure,which would have mandated 1:1 mitigation requirements for conversion of any type of farmland,is a
two-year bill. The bill passed Assembly Natural Resources,but the author announced she would hold the bill in her
committee,Assembly Agriculture Committee,until next year to try to resolve differences.
SB 425(DeSauinier)Mega Projects Peer Review-Oppose Unless Amended
The bill previously required projects over$1 billion to undergo an in-depth independent peer review. On May 7,the
author took amendments that significantly change the focus of the bill.It now establishes parameters for how peer
review should be conducted for public projects,if administering agencies choose to do so. All references to large
projects have been deleted. The bill will be heard in Senate Appropriations on May 20.
SB 727(Jackson)Pharmaceutical Product Stewardship Program-Support
The author decided to hold the bill in Senate Environmental Quality Committee,making it a two-year bill.SB 727
would require the producers(manufacturers)of pharmaceuticals to develop and implement an effective and
convenient collection system with oversight by CalRecycle. CMUA supported the measure because flushing unused
medication down the toilet poses a serious risk to water quality in California.The author will work on amendments to
try to reduce the concerns of the opposition.
Energy Update
AB 8(Perea)Alt-Fuel Vehicles Funding Programs-Support
Extends the deadline for fees that are collected for alt-fuel vehicle and infrastructure programs
administered by the Air Resources Board and the California Energy Commission from 2016,to 2024..,
Passed out of the Assembly Transportation Committee(10-3)and Assembly Natural Resources
Committee(6-2). The bill is now pending in Assembly Appropriations.
AB 284(Quirk)Energy Road to 2050 Board-Support
Requires representatives from several state agencies to convene the"Road to 2050 Board",in order
to develop strategies for the state to meet greenhouse gas emission reduction goals by 2050. The
bill has passed two policy committees with amendments from Assembly Natural Resources in print,
as of May 8,2013. The amendments revise and recast the bill from Public Resources code 25229 to
71090 and defines the"2050 goal"to mean,"the goal of reducing emissions of greenhouse gases by
80 percent from 1990 emission levels by 2050."The bill is pending in Assembly Appropriations.
AB 1073(Tones)Emergencies and Disasters:Utility Universal Insignia-Support
This bill requires the Office of Emergency Services(OES)to develop a universal insignia for utility
workers and certified technicians who respond to a state disaster. Passed Assembly Appropriations
(12-5)with fiscal costs for OES at$25k or less. The bill is now pending on the Assembly Floor.
AB 1077(Muratsuchi)Incentives:Alternative Fuel Vehicles:Tax Values-Support,
Reduces the upfront costs of purchasing alternative-fuel vehicles by alignin '' - ±,_-.Vyi, . '. `'
the sales tax and the vehicles license fee with conventionally-fueled vehicles.The bill was heard in
the Assembly Revenue and Taxation Committee but instead of being voted on,it was placed in the
Committee's own Suspense File for further fiscal consideration.
AB 1257(Nazarian)Natural Gas Benefits:CEC Periodic Report-Support
Requires the California Energy Commission(CEC)to prepare a report every four years regarding the
benefits and uses of natural gas. The bill passed out of the Assembly Natural Resources Committee
(9-0)with amendments that are now in print,as of May 6,2013. Amendments recast the bill from
having its own Chapter in the Public Resources code to instead,being added to codes pertaining to the
Integrated Energy Policy Report. The intent section of the prior bill has been deleted and a paragraph
"10"has been added to evaluate the incremental beneficial and adverse economic costs and
environmental impacts of any proposed strategies.This bill is pending in the Assembly Appropriations
Committee.
AB 1295(Hernandez)Community RPS Programs for FIT Complying Utilities-Oppose
This bill establishes a community renewables program for all FIT complying utilities. CMUA met with
the consultant in Assembly Appropriations Committee to discuss if the Chairman would be open to
ensuring that the affected POUs are allowed to consider programs that meet the unique needs of
their communities instead of a"comparable"program. The Committee analysis contained such an
amendment request and the author accepted it. This should ensure that the word"comparable"is
deleted from the bill. The bill was sent to Suspense and is pending further fiscal review.
SB 389(Wright)Air District Emission Credits for Electrical Generators-Support
This bill would prohibit emission off-set fees from being imposed on utilities and other entities that
are retrofitting and upgrading existing generation facilities to be cleaner and more efficient. The bill
was up for a vote only on May 1st,where the bill failed again(4-5)but with the Senators Hill,Leno and
Pavley stating they will keep an eye on the process and desire that no rules adversely affecting jobs be
adopted.
Hear it first....
twitter.com/CMUA_Tweets
069
City of Azusa
iosne
AZUSA
LIGHT & WATER
For Quality of Life
May 7,2013
The Honorable Henry Perea
California State Assembly
State Capitol,Room 3120
Sacramento,CA 95814
RE: AB 145 (Perea) Oppose Unless Amended
Dear Assembly Member Perea:
On behalf of City of Azusa Light & Water, I must take a position of"oppose unless amended"
on your bill,AB 145.
As you know, the proposed measure moves the Drinking Water Program from the California
Department of Public Health (CDPH) to the State Water Resources Control Board (SWRCB).
While we acknowledge changes are needed to expedite monies in the Safe Drinking Water State
Revolving Fund (SDWSRF) to communities that lack safe drinking water, we do not agree that
the entire Division needs to be moved.
Azusa operates its drinking water systems under permits issued by CDPH's Drinking Water
Program, and that permitting process has not been the target of any delay or criticism. The
program's location at CDPH reflects the established emphasis of safe drinking water as a critical
public health necessity. The Drinking Water Program provides a high level of technical
assistance through continuous interaction and communication with public water systems
regulated by CDPH. Moving the Drinking Water Program to SWRCB could place this
efficiency at risk.
SWRCB's mission statement, its management and its Board, is not focused on human health. In
our view, the surveillance and protection of public water supplies is inherently a public health
function that rightly belongs at CDPH.
Our agency asks that you amend AB 145 to focus solely on the changes that need to be made to
more effectively distribute the unspent funds in the SDWSRF. While we think that changes
could be instituted at CDPH to expedite the funds, we would also accept an amendment that
would provide that the Administration of these funds be moved to SWRCB, which effectively
manages a different SRF for wastewater projects. This would leave the permitting functions in-
tact at CDPH, maintain the emphasis on human health for drinking water, and yet still make a
very significant change to the SDWSRF.
Azusa Light&Water 729 N.Azusa Avenue P. 0. Box 9500 Azusa,California 91702
626/812-5208(phone) 626/334-3163(fax) www.azusalw.com(web) information@azusalw.com(e-mail)
• ori C
AB 145,"Oppose Unless Amended"Letter
May 7, 2013
Page 2
Thank you for your consideration.
Sincerel
"1/410-1) 00144)
George F. Morrow
Director of Utilities .
cc: Members, Assembly Appropriations Committee
Senator Ed Hernandez
Assembly Member Roger Hernandez
Azusa Utility Board, Mayor and City Council
o ? i
Information Item
Presented ..i-
Si�f�/3
AZCJS.A
:IGMT R WATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITI �/
i
DATE: MAY 28, 2013
SUBJECT: THIRD QUARTER BUDGET REPORT FOR WATER AND ELECTRIC FUNDS
FOR FISCAL YEAR 2012-13
Attached reports include unaudited budget information regarding the water and electric funds
through March 31, 2013.
In general, both the water and electric utilities had essentially "break even" cash flows through
the third quarter of FY 2012-13, with electric utility having slightly positive cash flow of
$27,686, and the water utility having slightly negative cash flow of($188,613).
Sales of electricity through third quarter were 5.78% higher than third quarter in the prior fiscal
year, and slightly higher than sales in past three fiscal years through the third quarter. Below
table shows sales and billing trend for electric utility since FY 04-05 through third quarter of
each fiscal year:
3rd Quarter Electric Sales/Billings
FY kWh Sales Billings
04-05 190,471,748 $20,612,795
05-06 187,307,423 $20,923,915
06-07 198,360,951 $22,360,051
07-08 191,906,326 $22,220,740
08-09 194,575,820 $24,636,827
09-10 189,042,374 $23,173,576
10-11 181,142,283 $25,165,128
11-12 180,099,346 $27,116,305
12-13 190,501,254 $28,129,703
The Power Cost Adjustment (PCA) in effect through the third quarter of FY 12-13 generated
about $3.2 million and helped meet expenditure requirements. On January 1, 2013, the PCA was
adjusted to $0.01916 per kWh, and is expected to be adjusted slightly upward to $0.02037 per
kWh on July 1, 2013, due to forecasted costs in FY 2013-14.
072
Information Item
Presented ,5-Am/df));
Fr e
AZUSA
tIGMT & 'NATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MAY 28, 2013
SUBJECT: STATE REVIEW OF AZUSA'S RECYCLING PROGRAMS
The California Integrated Waste Management Act of 1989 ("AB 939") required cities and
counties throughout the state to achieve a 50% waste diversion goal by the year 2000. This
waste diversion goal was modified in 2007 to a pounds per person per day waste disposal target.
Through this process, Azusa's target was calculated and set at 6.3 lbs per person per day.
AB 939 also required that the State conduct reviews of each local jurisdiction's compliance
effort on an annual basis. The frequency of this review was later modified to be every two years,
and then every four years, or more, at the option of the State. In April 2013, the State agency
responsible for conducting these reviews, the Department of Resources Recycling and Recovery
("CalRecycle"), conducted a review of Azusa's compliance effort for the 2007—2011 period.
As shown by attached letter, Azusa was found to be in compliance with AB 939 for this 5-
year period. The City of Azusa implemented various recycling programs over the years to
demonstrate a good faith effort at compliance, and has also met the disposal requirements of AB
939 by disposing of less than 6.3 lbs per person per day. Some of the programs implemented to
date include:
1. Centralized residential, commercial and industrial waste processing
2. Residential yard waste collection/recycling
3. School source separation recycling program
4. Technical assistance program for businesses
5. Promotion of household hazardous waste round-ups
6. Appliance recycling through the Sanitation Districts
7. Backyard composting
8. Used motor oil recycling
9. Sharps waste recycling
10. Public education about source reduction and reuse
076
State's Review of Azusa's Recycling Programs
May 28, 2013
Page 2
The City's annual disposal rates per person for the compliance period were as follows:
Year Lbs/Person/Day
2007 5.9
2008 5.6
2009 4.6
2010 4.3
2011 4.0
The downturn in the economy starting about 2007 probably helped the City to dispose of less
waste on a per capita basis, however, staff is pleased with the results of this review and
CalRecycle's review letter is attached for your reference. Being in compliance helps the City of
Azusa avoid further orders from the State, and any threat of potential fines of up to $10,000 per
day.
Prepared by:
Cary Kalscheuer, Assistant Director—Customer Care & Solutions
077
California Environmental Protection Agency Edmund G.Brown Jr.,Governor
CalRecycle) DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY
1001 I STREET,SACRAMENTO,CALIFORNIA 95814•www.CALRECYCLE.CA.GOv•(916)322-4027
P.O.BoX 4025,SACRAMENTO,CALIFORNIA 95812
April 29, 2013
Cary Kalscheuer, Assistant to Director of Utilities
City of Azusa
729 N Azusa Ave
Azusa CA 91702
Dear Mr. Kalscheuer,
We are writing regarding the status of CalRecycle's most recent review of whether the
City of Azusa is in compliance with meeting AB 939 requirements, most importantly in
terms of implementing diversion programs. Public Resources Code (PRC) Section
41825 specifies a schedule for this review and requires CalRecycle to make an
independent evaluation and finding of whether each jurisdiction was in compliance with
PRC Section 41780 during the review period. As a result of this review, CalRecycle
may find that:
1) A jurisdiction is meeting the requirements of AB 939 because:
a. it has adequately implemented its diversion programs and has achieved
the diversion requirement; or
b. while it has not achieved the diversion requirement, it has made a good
faith effort to implement diversion programs; or
2) A jurisdiction has failed to adequately implement its SRRE and/or HHWE and the
process should commence to consider whether issuance of a compliance order
would be appropriate. Jurisdictions that fail to satisfy the conditions of a
compliance order may be subject to a fine of up to $10,000 per day.
The 2007-2011 Jurisdiction Review has been finalized. CalRecycle has found that
Azusa is meeting the requirements of AB 939. We commend the City for continuing to
dedicate resources to meeting the requirements of AB 939. Your efforts are helping to
conserve natural resources, strengthen the State's economy, and reduce greenhouse
gas emissions.
We also want to note that as the economy rebounds businesses will likely produce
more, consumers will buy more, and construction will increase. While this would be
great news, we consequently also expect that more solid waste will be generated and
discarded. As a result, continuing the City's diversion programs is critical to ensuring
continued compliance with AB 939. In particular, in addition to meeting and maintaining
the requirements of AB 939, the City is responsible for implementing the Mandatory
Commercial Recycling education, outreach and monitoring requirements of AB 341.
ORIGINAL PRINTED ON 100 X POSTCONSUMER CONTENT,PROCESS CHLORINE FREE PAPER
078
To ensure that the City is poised to implement mandatory commercial recycling and to
continue implementing its diversion programs to handle the anticipated increase in solid
waste disposal, Airek Mathews from CalRecycle's Local Assistance and Market
Development (LAMD) Branch will contact you if additional information is needed based
on our previous conference call and visit.
In conclusion, we are pleased that Azusa has been found to be in compliance with PRC
Section 41780 as part of the 2007-2011 Jurisdiction Review. At the same time, we are
looking to the future and want to work with you to ensure the continued success of the
jurisdiction's overall diversion efforts. If you have any questions, please contact your
LAMD representative, Airek Mathews (562) 981-5614 or
Ai re k.M a thews(c�ca l re cvcl e.ca.g ov.
Sincerely,
11/.6
Howard Levenson, Deputy Director, Materials Management and Local Assistance
Division
Cara Morgan, Branch Chief, Local Assistance and Market Development Branch
Jennifer Wallin, Section Manager, Local Assistance and Market Development Branch —
South Section
(179
Quarterly Financial Report
May 28,2013
Page 2
The electric fund reserve is made up of cash on hand and cash held in rate stabilization fund.
The total of these two was reported to be $19,543,602 in the audited financial report for Fiscal
Year Ended June 30, 2012. The amount of cash on hand is slightly higher due to sale of land and
repayment of some loans by former redevelopment agency before dissolution.
The fiscal year to date financial performance of electric fund has allowed it to exceed the
minimum debt coverage requirement of 1.10 with estimated debt coverage of 6.30 for the period.
The minimum reserve policy requirement of $12.6 million has also been exceeded; however,
spending on Capital Outlays and Projects has been conservative at 15% of budget.
Sales of water through third quarter were 5.25% higher than third quarter of prior fiscal year, and
slightly higher than sales in past three fiscal years through the third quarter. Below table shows
sales and billing trend for water utility since FY 04-05 through third quarter of each fiscal year:
3rd Quarter Water Sales/Billings
FY CCF Sales Billings
04-05 6,833,381 $11,301,004
05-06 7,157,757 $11,096,241
06-07 7,689,683 $12,205,584
07-08 6,488,230 $11,844,582
08-09 6,325,483 $10,660,371
09-10 6,021,086 $11,673,295
10-11 5,650,960 $12,636,448
11-12 5,832,676 $13,163,020
12-13 6,138,787 $13,759,207
While the Water Utility's reserve policy is set to $25 million,the Water Utility has adequate cash
on hand with an estimated reserve of about $20 million through the third quarter ending. It's
possible that this reserve may increase by fiscal year end due to potential water lease revenue of
$2.4 million, however, with water conservation starting July 1, it is highly likely that we will see
lower sales during the summer months compared to last year.
This fiscal year's debt service is being aided by last year's refinancing of long term debt, and our
debt coverage ratio of 1.70 is well above the minimum of 1.25 required by bond financing
agreements.
Prepared by:
Cary Kalscheuer, Assistant Director—Customer Care & Solutions
Electric Utility Quarterly
Budget Report 3rd Quarter
Ended March 31, 2013
(UNAUDITED)
Consumption and Reserve Info Prior FY End 3rd Qtr Ended Percent
3/31/13
Consumption-kWh: 236,527,153 190,501,254 81%
Cash/Reserve Prior Fiscal Year End(') $19,515,916 $19,543,602 100%
BudgetInfonmation Budget Actual Thru Percent of
12-13 3/31/13 Budget
Revenue
Retail Billing Amounts(2) $34,324,400 $28,129,703 82%
Resale Revenue(3) 8,106,095 5,010,200 62%
Other Miscellaneous Revenue 303,300 91,283 30%
Interest Income 120,000 74,883 62%
Total Revenues $42,853,795 $33,306,070 78%
Expenses
Purchased Power(3) $26,330,710 $22,293,016 85%
Transmission/Dispatching 4,237,640 3,069,304 72%
Operations and Maintenance 3,514,085 2,477,622 71%
Administrative and General(4) 2,188,211 1,797,138 82%
Franchise and In-Lieu-Tax 3,400,250 2,813,255 83%
Subtotal Expenses $39,670,896 $32,450,334 82%
Capital Expenditures/Debt Service
Long Term Debt Service(5) $776,107 $582,081 75%
Capital Outlays and Projects(6) 1,650,240 241,803 15%
Total Expenditures $42,097,243 $33,274,218 79%
Adjustments
Transfers Out 9,450 4,166 44%
Total Expenditures and Transfers Out $42,106,693 $33,278,384 79%
Change in Cash/Reserve $747,102 $27,686
Debt Coverage Ratio(') 8.48 6.30
(1)Source:FY 2011-12,CAFR,Unrestricted Cash and Rate Stabilization Fund. Reserve Policy is$12.6 million.
(2)Actuals represent amounts billed based on Customer Information System report thru March 31,2013.
(3)Source:Power Resources Division Budget.
(4)35%share of Fund 31-Admin&Consumer Services Budget.
(5)Based on annual scheduled debt service payments for Series B and C,2003 Certificates of Participation.
(6)Capital Outlay Accts and Capital Improvement Project budget figures.
(7)Total Revenue less Cost for Purch'd Pwr,Trans,O&M,and A&G,divided by debt service.
Minimum debt coverage requirement is 1.10 per bond financing agreements. This is preliminary d/c
ratio and it may vary with Disclosure Report prepared after the audited financial reports are
available,around December 2013.
Water Utility Quarterly Budget Report
3rd Quarter Ended March 31,2013
(UNAUDITED)
Consumption and Reserve Info Prior FY End 3rd Qtr Ended Percent
3/31/2013
Consumption-CCF: 7,384,003 6,138,787 83%
Cash and Investments:w $ 20,076,210 $ 19,887,597 99%
FY 2009-2010 Budget Information Budget Actual Thru Percent of
1213 3/31/13 Budget
Revenues
Retail Billing Amounts(2) $ 17,010,680 $ 13,759,207 81%
Other Revenues 2,999,380 904,237 30%
Interest Income 220,000 114 0%
Total Revenues $ 20,230,060 $ 14,663,558 72%
Expenses
Production 2,895,070 1,999,269 69%
Purchased Water 3,116,485 2,532,385 81%
Transmission and Distribution 3,046,975 2,184,104 72%
Customer Accounting and Sales(3) 4,266,080 3,199,560 75%
Administrative and Engineering 833,215 394,394 47%
Franchise Fees 340,215 283,573 83%
Subtotal Expenses $ 14,498,040 $ 10,593,286 73%
Capital Expenditures/Debt Service:
Debt Service Payments(4) 3,981,490.00 $2,554,725 64%
Capital Improvement Budget(5) 2,136,740 1,704,159 80%
Total Expenses(Less Bond Funding) $ 20,616,270 $ 14,852,171 72%
Adjustments
Transfers Outtb) 200,000 $0 0%
Total Expenditures and Transfers Out $ 20,816,270 $ 14,852,171 71%
Net Change in Cash(Negative) $ (586,210) $ (188,613)
Debt Coverage Ratio") 1.53 1.70
Notes:
(1)Source:Includes following amounts from Statement of Net Assets in FY 11-12 CAFR: Cash and
Investments:$13,996,936;Due from Other Funds:$4,398,519;and Advances to Successor Agency:$1,221,413.
Reserve Policy is$25 million.
(2)Based on Customer Information System Billing Amounts through March 31,2013.
(3)65%of Customer Service Fund Expenses thru 3/31/12 less offsetting revenue of$283,806.37.
(4)Estimated Principal and Interest on 2006 and 2012 Revenue Bonds thru 3rd quarter of fiscal year.
(5)Approved appropriations for multi-year projects,some of which are carryovers from prior year.
(6)Half of Interest Income may be transferred by policy if there is positive net income. As of 3/31/2013,no
transfers have been made.
(7)Total Revenues less Production,Purch'd Wtr,T&D,Cust Acctg,&A&G divided by Debt Svc Pymnts.
Minimum debt coverage requirement is 1.25 per bond financing agreements.
Information Item
Presented S/a- )aol3 •''
1111111"AZLISA
• _CBI L 'KRTEI
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE
DATE: MAY 28, 2013
SUBJECT: RESIDENTIAL ENERGY EFFICIENCY REBATE PROGRAMS UPDATE
The California electric restructuring legislation (AB 1890) signed into law on September 23,
1996, requires municipal electric utilities to expend 2.85% of their retail revenues to fund
investments in energy conservation.
AB 1890 authorized municipal utilities to impose a surcharge on customers to pay for these
investments. The usage surcharge, referred to as the public benefit charge (PBC), is expected to
continue for all California Publicly Owned Utilities for an indeterminate period. For information,
Azusa collects $0.00263 per kilowatt-hour at this time (1.77%of retail revenues).
The Public Benefit program provides cost-effective demand-side management services to
promote energy-efficiency and energy conservation; investment in renewable energy resources
and technologies consistent with existing statutes and regulations; research, development and
demonstration programs that advance science or technology which would not result from
regulated competitive market environments; and services provided to low-income electricity
customers, including but not limited to, targeted energy efficiency services and rate discounts.
Current Residential Programs:
• EnergyStar® Refrigerator Program: Rebates of $100 are offered for the purchase of a
refrigerator with an EnergyStar®rating.
• EnergyStar® Air Conditioner Program: Rebates of$50 per ton for room air conditioners
and $70 per ton for central air conditioners are offered for the purchase of Energy Star®
rated equipment.
• Home Weatherization Rebate Program: Prescriptive rebates are offered for a variety of
home weatherization measures, such as insulation, duct testing, window replacement,
whole house and attic fans and weather stripping, up to a maximum of$250.
080
Residential EE Rebate Program Update
May 28,2013
Page 2
• EnergyStar® Appliance Program: Prescriptive rebates are offered for most high
efficiency appliances that have the EnergyStar® rating, including but not limited to,
dishwashers, clothes washers, pool pumps, ceiling fans and various lighting measures.
• Free On-Line Home Energy Audit Program: Customers can enter various parameters that
match their home and lifestyle. They will then receive an immediate list of conservation
recommendations and possible conservation measures along with an estimate of what
each appliance within the home is using in the way of energy.
• LED TV and Computer Monitor Program: Rebates of 25%, up to $750, are offered for
the purchase of LED TV's and computer monitors.
Program Results
For comparative purposes the first three quarters of the current 2012-2013 fiscal year are
compared to the same time frame of the prior 2011-2012 fiscal year.
Residential Energy Efficiency Rebate Update
Number Percent Rebate Percent
Rebates Inc./Dec. Amount Inc./Dec.
Refrigerator:
FY 11-12(Jul-Mar) 77 $ 7,700
FY 12-13(Jul-Mar) 58 -25% $ 5,800 -25%
Air Conditioner:
FY 11-12(Jul-Mar) 6 $ 999
FY 12-13(Jul-Mar) 4 -33% $ 360 -64%
Weatherization:
FY 11-12(Jul-Mar) 20 $ 2,187
FY 12-13(Jul-Mar) 21 5% $ 2,710 24%
EnergyStar Appliance:
FY 11-12(Jul-Mar) 57 $ 7,533
FY 12-13(Jul-Mar) 88 54% $ 14,631 94%
LED TV/Computer Monitor:
FY 11-12(Jul-Mar) 81 $ 18,357
FY 12-13(Jul-Mar) 130 60% $ 23,412 28%
Cumulative Total:
FY 11-12(Jul-Mar) 241 $ 36,776
FY 12-13(Jul-Mar) 301 25% $ 46,913 28%
The On-Line Home Energy Audit Program has seen an increase of about 5% in the number of
user sessions as compared to the same period last year.
061
Residential EE Rebate Program Update
May 28,2013
Page 3
Explanation of Results
From the results, it appears that the programs have been effective in providing the incentive for
customers to purchase the more efficient products. With some modifications the programs should
continue to provide a cost effective means of attaining the legislative energy efficiency goals in
the coming years.
The reduction in refrigerator and room air conditioner rebates is expected as the quality and
efficiency of the products continue to increase. This results in a lower number of appliance
replacements year after year. The lower number of air conditioners is also the result of the
central air conditioners now being rebated through the EnergyStar® Appliance Program.
The increased number of rebates for the remaining programs and the Residential Programs as a
whole is most likely the result of continued direct outreach through the annual calendar and the
increased number of annual recreation bulletin distributions, predominately made possible by
this program.
Potential Modifications for FY13-14
Program updates are continually needed to ensure the most cost effective programs are
expanded, combined and marketed, while the less cost effective programs are revised to meet
that goal or possibly eliminated.
The LED TV/Computer Monitor program was designed to incent customers to purchase the
higher efficiency LED units by providing 50% of the cost differential of the then current
technology and the new LED technology. Over time, the cost differential has narrowed as the
technology has matured, thus virtually eliminating the need for an additional incentive. This
program should be modified accordingly or replaced with a more cost effective program in the
next fiscal year.
The overall Residential Rebate Program needs simplification. This will most likely be
accomplished through the consolidation of the multiple rebate programs into a single
"Residential Rebate Program". Revised advertising and the updating of the corresponding
website should accompany the revisions.
Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator
062
Information Item
Presented sFIN.S
•
•
AZUSA
LIGHT . 'NATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MAY 28, 2013
SUBJECT: UTILITY LOW INCOME ASSISTANCE PROGRAMS
This report provides information on Low Income Assistance Programs available to Azusa Light
& Water customers. There are currently five low income assistance programs available to Azusa
Light & Water Customers:
Eligible $ Benefit
Program Name Funding_ Administrator Customers FY 11-12
Low Income Home Energy Federal State of California
Assistance Program Grants and Long Beach Electric
(LIHEAP) Community Action Customers $69,147
Partnership
Residential Low Income Public Azusa Light& Water Electric $44,820
Assistance Program Benefits _ _Customers
Neighborhood Assistance Customer Azusa Light&Water Water $1,361*
Program Donations Customers
Life Support Device Discount N/A Azusa Light&Water Electric $0:0327
Customers discount/kWh
Utility Users Tax Exemption N/A Azusa Light&Water Water and Exemption of
Electric 4%Tax
*This is amount of contributions;disbursements totaled$1,300.
Low Income Home Energy Assistance Program (LIHEAP)
LIHEAP is a federally funded program administered by the State of California's Department of
Community Services and Development in conjunction with the Long Beach Community Action
Partnership (LBCAP). In 2009, the LBCAP joined with the Eastern Los Angeles Assistance
Team (ELAAT)to help customers qualify for program benefits.
Customers interested in the LIHEAP would be asked to call 888-351-4061 to set up an
appointment at the Library on Monday with a LBCAP or ELAAT representative who would
gather information necessary to determine if the customer qualifies for benefits. Appointment
times are set for 10 a.m., 11 a.m. and 12 noon.
063
Low Income Assistance Programs
May 28,2013
Page 2
Low income thresholds generally apply and benefits range from $131 to $1,000, one time per
year, depending on income levels, no. of people in a household, and square footage of home.
Customers may go online at http://www.csd.ca.gov/Services/HelpPayingUtilityBills.aspx to get a
general sense of whether they would qualify. Households under the following income levels are
likely to qualify:
2013 Income Guidelines
Persons in Monthly Income Annual Income
Household
1 $2,025.33 $24,304.00
2 $2,648.50 $31,782.00
3 $3,271.66 $39,260.00
4 $3,894.86 $46,738.00
5 $4,518.00 $54,216.00
6 $5,141.16 $61,694.00
7 $5,258.00 $63,096.00
8 $5,374.83 $64,498.00
9 $5,491.75 $65,901.00
10 $5,608.58 $67,303.00
Customers must bring the following items to the Library to apply: (1) identification card or
driver's license; (2) proof of household income; (3) gas and electric utility bills; and (4) social
security card or no.
Once qualified, the LBCAP communicates the customer record information to the State, and the
State then prepares an electronic file for Azusa Light & Water to upload into our customer
information system. A check payment accompanies the file, and is deposited as a utility
payment on behalf of all of the qualifying and approved customers while the electronic file
updates the customer accounts with the payment information.
The LIHEAP process takes 2 to 3 months for the customers to see benefits, however, is very
efficient for the Utility since it doesn't require any staff time by Azusa Light & Water to review
and approve applications, and once qualified, processing the customer payment file provided by
the State is very fast to update customer records. Through the end of March, 364 customers were
provided with $97,667 so far this Fiscal Year through the LIHEAP.
Public Benefits Program
Azusa Light & Water's Residential Low Income Assistance Program is funded with revenue
received from the Public Benefits charge.
Low income assistance is an eligible use of these funds and is outlined in Rule No. 18 of Azusa
Light & Water's Rules and Regulations. Interested customers are required to fill out an
application and provide documentation of income. In general, Azusa Light & Water's guidelines
for qualifying customers follow the low income thresholds used by the State.
Low Income Assistance Programs
May 28,2013
Page 3
Like the LIHEAP, only City of Azusa electric customers can qualify for this program benefit;
and also like the LIHEAP, Azusa Light & Water's public benefits program only pays out one
time per year for qualifying customers. Paperwork is accepted, reviewed and approved by
individual Customer Services Representatives (CSRs). Once approved, a credit is applied to the
customer's account to discount the monthly utility bill for electrical usage charges. The credit
amount varies but generally covers one month's electric bill, excluding taxes. Through the end
of February, 557 customers were provided with$46,720 in discounts through this program.
Since the revenue for this program is collected through the public benefits charge that is part of
the regular utility bill, this revenue is usually deposited along with the customer's payment. The
public benefits portion collected is automatically posted to the public benefits fund, just like
other payment portions are distributed, i.e., charges for water services are posted to the water
fund. In this way, collections and accounting of Public Benefits revenue is very efficient from an
operations standpoint.
Neighborhood Assistance Program
The Neighborhood Assistance Program is the only program that relies on customer donations.
Donations are made by customers when they pay their utility bills. A customer making a
donation would typically enter the amount of the donation in the box on the utility bill payment
stub for"Neighborhood Assistance Program" and would then add that amount to their payment.
This program was created in October 2003 and was intended to provide benefits to customers
living both inside and outside the City of Azusa. Up to this time, this program has provided a
flat $50.00 credit to a qualifying water customer's account, using the same low income
thresholds as the LIHEAP. CSRs also process customer applications similarly to how public
benefits low income program applications are processed.
Below shows donations received since FY 2005-06.
Fiscal Year Amount Collected #of Donations
FY 05-06 1,128 71
FY 06-07 2,126 120
FY 07-08 1,595 129
FY 08-09 1,886 134 •
FY 09-10 1,141 133
FY 10-11 1,323 133
FY 11-12 1,362 117
FY 12-13 YTD 1,031 106
Total 11,592 943
Given the low number of contributions, the flat $50 disbursement has resulted in donations being
depleted and applicants being placed on a waiting list. For instance, in FY 2009-10, we had 77
08r�
Low Income Assistance Programs
May 28, 2013
Page 4
applications for funding, but were only able to fund 38 applications. In FY 2010-11, we had 68
applications but were only able to fund 19 applications. In FY 2011-12, the Utility stopped
taking applications due to the backlog of applicants waiting for funding.
While Azusa Light & Water continues to accept contributions through utility payments, staff is
considering an option to hold submitted Neighborhood Assistance Applications until the end of
November, and then divide annual contributions by the number of applicants to calculate a per
customer credit for the year, and then issue credits during the month of December. This will
provide all applicants with a credit amount equal to what has been donated and avoid long wait
times for funding; however, the credit amount will likely be far less than $50.00.
The Neighborhood Assistance Program could be better advertised to solicit greater contributions;
however donations cannot be efficiently processed by our utility payment vendor or lock box
service provider because the donated amount creates a variance with the utility bill amount due.
When this happens, the utility payments with donations have to be forwarded by mail to our
office for review and then posted to the customer's account by hand, at which time the donation
amount is keyed in and posted to the donations account. This creates a slight delay in posting
customer utility payments and takes more staff time to post the donations.
When factoring in administrative costs to manage this program, including the staff time to post
donated funds, review applications received, and issue credits to customers, the Neighborhood
Assistance Program is only marginally beneficial given the amount of funds contributed by
customers. As a result, the Utility Board may wish to consider an option to discontinue this
program when new utility billing paper stock is ordered.
Life Support Device Discount
Another program which provides financial benefits to some customers, includes the residential
life support rate.
Most residential customers pay $0.1160 per kWh for the first 250 kWh, and $0.1487 per kWh for
all consumption above 250 kWh. However, those customers which require medical equipment,
such as electrostatic nebulizers or oxygen concentrators, can apply for a discounted rate for such
equipment.
The application requires a written opinion from a medical doctor who is to list the equipment
required and number of hours of expected use. Field Services staff verifies the equipment as
being on site at the customer's premise and notes the voltage and amps of the equipment.
Documentation is reviewed by the Assistant Director of Customer Care & Solutions and a usage
allowance of kWh is approved.
The allowance grants customers a discounted rate of$0.1160 per kWh for usage of the medical
equipment above the 250 kWh thresold. The kWh allowance is entered into customer
information system to provide a discount to the customer at time of billing and stays in effect for
one year, at which time the customer must resubmit another application. 98 customers are
currently on the life line rate and usage allowances average about 194 kWh per month per
customer.
086
Low Income Assistance Programs
May 28,2013
Page 5
Utility User's Tax Exemption
In addition to the above programs, Azusa Municipal Code (AMC) section 70-263 allows utility
user tax (UUT) exemptions for customers: (1) over the age of 61 years, (2) handicapped or
disabled; and (3) those that meet low income requirements. Customers fillout a form to apply for
this exemption and if approved are granted exemption from the 4% utility users tax on electricity
and water service. The AMC also provides a UUT exemption for non-profit organizations.
These UUT exemption applications are processed by CSRs. Currently, there are 2,286
customers that are exempt from UUT.
Most of the above programs are marketed by individual CSRs that interact directly with
customers and know which customers are facing difficulties paying their utility bills. At times,
the availability of these programs is very helpful in working with customers in distressed
financial situations. Other publicity about these programs is provided over the City's website.
Prepared by: Cary Kalscheuer, Assistant Director-Customer Care & Solutions
081
Information Item
Presented SID-lido/3
AZ USA
CHI S X'ATEI.
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MAY 28, 2013
SUBJECT: "ROUND-UP" TYPE PROGRAM EVALUATION
It has been suggested that utilities staff evaluate a utility billing feature that allows customers to
"round-up" their payment to a full dollar amount and possibly designate the rounded up amount
to low income customers, non-profit organizations and charities.
Azusa Light & Water currently has multiple programs to assist the low income customers of
Azusa. Most other utilities have programs similar to the current Azusa Light & Water programs
with comparable success in providing the low income customers assistance with paying their
electric bills, with the Azusa Light & Water voluntary contribution Neighborhood Assistance
Program being the only one to help water customers. From past experience, this voluntary
contribution program has had marginal success and donor participation is limited.
Several other utilities have implemented similar round-up type programs; however they are
primarily targeted toward the low income electric customers rather than water customers because
the electric bills, on average, tend to be higher than the water bills.
Burbank Water and Power
Burbank Water and Power had the Neighbors Offering Emergency Love (NOEL) program
started back in 1989. This program paid $100.00 per resident on a one-time only basis to
someone who went through an emergency (medical crisis, lost their job, etc.). Funds were paid
out at anytime during the year as long as funds were available. There was no income limitation,
rather funds were granted to a resident with good credit and one year of service with the utility.
Customers were able to donate to the program by writing a separate check, usually $5.00, and
include it with their bill payment. This program was recently changed to "Project Share" to help
residents in need of temporary financial assistance. Customers can partner with Burbank in
assisting neighbors who need temporary financial aid by either making a single donation of any
amount by writing a check to 'Project Share' and mailing it directly to Burbank Water and Power
or by becoming a "Project Share Angel" and signing up for monthly donations or the Bill Round-
Up program. Bill Round-Up authorizes Burbank to round up the current utility services bill to the
nearest dollar amount. Every dollar donated goes toward helping Burbank families in need.
068
"Round-Up" Type Program Evaluation
May 28, 2013
Page 2
Riverside Public Utilities
The Riverside SHARE program was started in 1989 and pays $150.00 per residential account per
calendar year as long as funds are available. This is a low-income program based on Federal
guidelines, the same as LIHEAP. The only other requirement is that the customer have one year
of service with Riverside.
Customers can donate by checking a box on their utility bill and either deciding each month to
donate a flat amount, or to sign up one time for a recurring donation each month to automatically
roundup to the nearest dollar amount. Riverside collects an average of $3,500.00 each month.
They promote donations to the program in November and December on the back of their utility
bills, with bill inserts, and on their utility bill envelopes. In addition, their Public Benefit Fund
pays about $90,000.00 to the County Department of Community Action to administer the
program. All donations go directly toward utility bill assistance for low-income residents in the
City of Riverside. Customers donating $10 or more per year receive a written receipt in January
of their annual contribution for tax purposes. Riverside serves over 7000 customers per year on
this program with a budget of over $1,000,000 per year.
Los Angeles Department of Water and Power(LADWP)
LADWP contracts with the United Way to administer their Project Angel, Assist Neighbors by
Giving Energy for Living program and pays over $3,000 per month for this service. The program
was implemented in 1983 and pays a maximum of $100.00 to senior citizens or low-income
residential accounts per year based on the Federal low-income guidelines. Other requirements
include being a LADWP customer, residential single-family and the customer must have a
balance owning on their account.
Donations are solicited on utility bills. Any dollar amount can be added to a utility bill. There is
no automatic monthly sign-up; rather the donation is good only for that month. No Public Benefit
funds are involved. Whenever the fund reaches $100,000.00 — usually every two years —
LADWP issues public announcements with locations, dates, and times when Project Angel funds
become available, usually by using a bill insert. Typically all the funds are exhausted on the
morning of the distribution day. Priority is given to those who are not eligible for other aid or
assistance. Approximately 1,000 customers are helped every two years.
Palmetto Electric Cooperative, Inc.
Palmetto Electric Cooperative, Inc., located in South Carolina, implemented "Operation Round
Up®" to provide funds for charities, needy individuals, and service organizations. A volunteer
board of community leaders, the Palmetto Electric Trust, decides which causes receive support
from Operation Round Up®. Local individuals and organizations with crucial needs such as
food, shelter, clothing, health care, and education are funded by the Trust contributions.
Customer contributions are generally about $6 per year and are tax deductible. A summary of
contributions appears on the utility bill in January and February.
Q89
"Round-Up" Type Program Evaluation
May 28,2013
Page 3
In order for Azusa Light & Water to implement a successful round-up type program, the
following should be taken into consideration:
• Based on past experience, the program must be aggressively marketed to the public in a
way to "compel" customers to make donations.
• The current billing system would need additional computer programming in order to
automate the round-up capabilities; the software vendor estimates that the additional cost
would be about $15,000, not including the annual licensing fees or internal resource time
to test, implement and maintain the program.
• Processing the donations would take more staff time, since our payment vendor cannot
automatically process payment amounts that do not match the billed amount. This means
that all such payments are mailed to our office and manually inputted into our customer
information system by Customer Service Representatives or Cashiers.
• There are other online or phone payment channels and vendors that could be affected by
the program and modifying those channels, such as Paymentus, or InfoSend, could
require additional staff time and added funding requirements.
Other Considerations
If the program were to be directed at funding non-profit organizations there would be the need to
establish an application process for accepting applications from non-profits that wished to
receive the benefits of such a program to determine which entities should be awarded the funds
or discounts. As a public agency, the City would not be able to set up a program that distributed
the proceeds or benefits directly to a specific non-profit entity. The City would be required to
first set up an objective program that invites any interested non-profits to apply for the program
and then the City would have to administer that program in an objective way to make the awards.
Additionally, if the receiving charitable organization allows for tax deductions, some
contributors may want to report their annual contributions. This might require further computer
programming, report writing, and mailings to customers. Due to the cost and public perception
challenges in administering such a program, most agencies contract this type of program out to
an experienced neutral entity, such as a county community assistance department, or a general
nonprofit entity that can make such distributions, such as the United Way.
Another possible issue relates to customers that are located outside of the City of Azusa that
make donations. They may complain if there are no charities that benefit from the program that
are located in the City where they reside.
Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator
09(J
Information Item
Presented
,„„
AZ USA
ont a ward.
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE
DATE: MAY 28, 2013
SUBJECT: PAST DROUGHT PATROL STATISTICS
During the period of October, 2007 through May, 2011 Azusa Light & Water was in various
stages of drought conditions. As a result, drought patrols were established to build community
awareness and address potential excess water use.
The following table shows some of the basic statistics for the past drought patrol results.
Past Drought Reports Statistics
Number
of Reversals Reversals Number of
Year Violations Fines ($) Number Fines ($) Exemptions
2007 52 4,350 0 0 2
2008 268 15,050 67 3,750 19
2009 5 250 5 250 1
2010 7 350 0 0 1
2011 0 0 0 0 0
Totals 332 20,000 72 4,000 23
As can be seen from the above statistics, there were substantial violations issued in the
preliminary stages of the drought and after conditions started to improve the number of
violations and fines subsequently fell as well. This was because, in the early periods, the water
situation was ominous and immediate results were required. Under less dire circumstances, the
more preferred method of addressing the public in the early stages of a drought period is to
educate rather than impose restrictions. Knowledge and awareness brings a community together
to address a situation and this can be accomplished through providing information and training.
091
Past Drought Patrol Statistics
May 28, 2013
Page 2
Some of the measures that can be used by the drought patrol personnel to provide education and
guidance are:
• Provide positive shut-off nozzles to customers washing their cars with an "open" hose
• Assist with the programming of irrigation controllers and encourage the installation of a
weather based "Smart" controller if one is not installed
• Explain how much water is really necessary to keep a lawn green without excess water
use. This can be accomplished through the use of a free rain gauge device for measuring
the amount of water being distributed by the irrigation system
• Address run-off and how to avoid it through better irrigation system maintenance and the
use of the correct sprinkler nozzles and spray patterns
• Remind customers that washing down hardscapes and sidewalks is a waste of water
• Issue citations for blatant and habitual water wasting violations as a last resort
• Provide water conservation tips and rebate program information
Through education and assistance, we believe water customers will have a greater tendency to
change their water use habits which is the key to attaining sustainable water saving results.
Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator
092
Information Item
Presented 37?-41g0/3
For
1111111111.111 s
llill*
AZUSA
CMI i k'itfl
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: JAMES W. MAKSHANOFF, CITY MANAGER
DATE: MAY 28, 2013
SUBJECT: FISCAL YEAR 2013/14 UTILITY PRELIMINARY BUDGET REVIEW
RECOMMENDATION
It is recommended that the Utility Board consider the materials and information provided at this
Budget Workshop and provide direction to staff with respect to any desired changes to the
Utility's Operating and Capital Budgets as proposed for Fiscal Year 2013/14.
FISCAL IMPACT
The Operating Budget of$73,603,530 and the Capital Budget of$3,240,000,respectively,
(comprising of the Public Benefits, Solid Waste, Consumer Services, Water and Electric funds)
together with the costs of such amendments as the Board may request.
Prepared by: S. Paragas
- 093
Azusa Refuse Rates
FY 2007-08 to FY 2013-14
Rate Changes
Service 2007-08 2008-09 Jan-09 2009-10 2010-11 2011-12 2012-13 2013-14
Residential Barrel Service $23.23 $23.52 $23.22 $22.38 $22.61 $22.58 $21.93 $22.16
Multifamily Bin $17.71 $17.82 $17.59 $18.44 $19.98 $17.91. $17.61 $18.73
Commercial-3 CY 1 X Wk $106.23 $110.29 $108.89 $106.67 $111.68 $116.74 $123.58 $117.24
Annual Percentage Change
Service 2007-08 2008-09 Jan-09 2009-10 2010-11 2011-12 2012-13 2013-14
Residential Barrel Service 1.2% -1.28% -3.62% 1.03% -0.13% -2.88% 1.05%
Multifamily Bin 0.6% -1.29% 4.83% 8.35% -10.36% -1.68% 6.36%
Commercial-3 CY 1 X Wk 3.8% -1.27% -2.04% 4.70% 4.53% 5.86% -5.13%