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AZUSA
..i. &WATER
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER NOVEMBER 25,2013
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
6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION
I. (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
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 October 28, 2013 as written.
2. Cancellation of December Utility Board Meeting. Recommendation: Cancel the scheduled Utility
Board meeting of December 23, 2013.
3. Acceptance of Demonstration Energy & Efficiency Developments (DEED) Residential Thermal
Energy Storage (TES) Research Grant. Recommendation: Accept a $60,000 DEED Grant for
Residential Thermal Energy Storage (TES) Research Grant from the American Public Power Association
and authorize execution of the associated Grant Agreement by the Mayor.
4. Approval of 2014 Energy Efficiency Program Updates. Recommendation: Approve modifications to
Azusa Light & Water's Energy Efficiency Programs, effective January 1, 2014, and authorize periodic
program updates to be approved and reported to the Utility Board by the Director of Utilities, as needed to
meet cost effectiveness goals and changes in legislation and/or regulations.
5. Approval of San Juan Unit 3 Energy Exchange and Firming Arrangement Between Azusa and
Arizona Public Service (APS). Recommendation: Authorize Staff to renew the energy exchange and
firming arrangement for San Juan Unit 3 with APS and authorize the Director of Utilities to execute the
final agreement with APS.
6. Adoption of Resolution on Policy of Use and Proceeds from Sales of Greenhouse Gas Allowances.
Recommendation: Adopt the following resolution on permissible usage and proceeds from sales of
allocated Greenhouse Gas Allowances:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ADOPTING THE AZUSA ALLOCATED GHG ALLOWANCE USE AND PROCEEDS POLICY.
7. Approval of Plan and Specifications for Project LD2013-10 for Furnishing and Installing
Underground Electric Substructures along Foothill Boulevard between Azusa and Dalton Avenue.
Recommendation: Approve plan and specifications for Project LD2013-10, and authorize the City Clerk
office to advertise the project and solicit formal bids for the furnishing and installing of underground
electric substructures in area as depicted in drawing ED2013-10.
8. Acceptance of Grant of Easement from Property Owner at Lot 2, Tract 54057-18 in Rosedale
Development. Recommendation: Accept Grant of Easement by the following resolution for the subject
location and authorize the City Clerk to file it 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
RECODING THEREOF.
9. Approval of Purchase of Electric Automated Meter Reading (AMR) Meters from McAvoy and
Markham. Recommendation: In accordance with Section 2-523 (d), Article VII, Chapter 2 of the Azusa
Municipal Code, the Utility Board approve the issuance of a Purchase Order to McAvoy & Markham, of
Irvine, CA, in an amount not-to-exceed $19,224 inclusive of sales tax and freight charges to Azusa for
purchasing 360 AMR meters.
10. Approval of Revised Specification for a Perimeter Fence at the Electric Division Yard (1020 W.
10th Street) and Authorize City Clerk to Advertise for Bids or Solicit Proposals.Recommendation:
Approve the revised block wall specification for the south perimeter fence in the Electric Division Yard
located at 1020 W. 10th Street; and authorize City Clerk to advertise for bids or solicit proposals for same.
11. Approval of Proposal by inContact for a Computer Based Phone System and Authorization to
Execute Professional Services Agreement. Recommendation: Approve proposal by inContact for a
computer based phone system and authorize the Mayor to execute Professional Services Agreement
subject to review by City Attorney.
12. Approval of an Amendment to Verizon Wireless Lease at the Hsu-Canyon Filtration Plant.
Recommendation: Approve both the attached amendment to add an additional 60 square feet of space
for an emergency generator to the current Communications Site Lease Agreement with Verizon Wireless,
and the associated Letter of Authorization for an Application For Zoning/Land Use Entitlements.
13. Approval of Resolution Amending the Water Fund Budget by $111,641 to Pay Arbitrage Rebate on
2003 Series A Certificates of Participation to Internal Revenue Service by November 30, 2013.
Recommendation: Approve the following resolution amending the FY 2013-14, water fund operating
budget by $111,641 in order to pay the arbitrage rebate on the 2003 Series A Certificates of Participation
(COP)to the Internal Revenue Service by November 30, 2013.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, AMENDING THE FISCAL YEAR 2013-2014 OPERATING BUDGET FOR THE
WATER UTILITY TO PAY FOR ARBITRAGE REBATE.
14. Approval to Execute a Confidentiality Agreement with Tenaska Energy,Inc. Recommendation:
Approve the execution of a confidentiality agreement with Tenaska Energy by the Director of Utilities.
E. SCHEDULED ITEMS
1. Authorization to Solicit Proposals for Emergency and Special Project Electric Equipment and
Material Supplier. Recommendation: Approve the solicitation of proposals to acquire emergency,
special project, and critical needs equipment/materials, and related services, from one or more
local/regional suppliers as per attached Scope of Work.
F. STAFF REPORTS/COMMUNICATIONS
1. First Quarter Budget Reports for Water and Electric Utilities
2. Azusa Water Supply Update
3. Update on Puente Hills Closure Waste Disposal (Verbal)
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."
APPROVED D-2
Date 1 1 12x113
AzuE\C N T t M 41 l
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE SA UTILITY
BOARD
FROM: GEORGE F.MORROW,DIRECTOR OF UTILITIES
DATE: NOVEMBER 25,2013
SUBJECT: CANCELLATION OF DECEMBER UTILITY BOARD MEETING
RECOMMENDATION
It is recommended that the Utility Board cancel the scheduled Utility Board meeting of
December 23,2013.
BACKGROUND
Historically,the Utility Board does not meet in December due to the Christmas holiday season.
As a result,Staff is once again recommending that the Utility Board cancel the scheduled Utility
Board meeting for Monday,December 23. Any urgent items requiring action by the Board will
be placed on a regular City Council agenda in December or January.
FISCAL IMPACT
None.
Prepared by: Liza Cawte,Senior Administrative Technician
UB-11
1
APPROVED D -3
Date \\ID
11;OM
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA
UTILITY BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: NOVEMBER 25, 2013
SUBJECT: DEMONSTRATION OF ENERGY & EFFICIENCY DEVELOPMENTS
(DEED) - RESIDENTIAL THERMAL ENERGY STORAGE (TES)
RESEARCH GRANT
RECOMMENDATION
It is recommended that the Utility Board accept a $60,000 DEED Grant for Residential
Thermal Energy Storage from the American Public Power Association and authorize execution
of the associated Grant Agreement by the Mayor.
BACKGROUND
The American Public Power Association (APPA), based in Washington, D.C., is the service
organization for the nation's more than 2,000 community-owned electric utilities. Collectively,
these utilities serve more than 47 million Americans.
APPA was created in 1940 as a nonprofit, non-partisan organization to advance the public
policy interests of its members and their consumers, and provide member services to ensure
adequate, reliable electricity at a reasonable price with the proper protection of the
environment
More than 30 years ago, the Demonstration of Energy & Efficiency Developments (DEED)
program was created by APPA as a funding source for public power research and
demonstration projects. Since inception, DEED membership has grown to 733 members, with
54 percent of APPA members also being DEED members.
DEED invests in electric utility industry future technologies and best practices and helps public
power continue its tradition of being a leader in cutting-edge research. DEED benefits are
especially helpful to members during challenging economic times and for smaller utilities with
limited resources. DEED also provides an avenue towards national recognition that is
otherwise very difficult to attain for the smaller utilities, such as Azusa Light & Water.
UB- 12
DEED —Residential TES Research Grant
November 25, 2013
Page 2
APPA utilities that are members of DEED are eligible for grants of up to $125,000 to support
innovative utility projects. The grants can be used to improve utilities by increasing efficiency,
reducing costs, investigating new technologies, offering new services, and improving processes
and practices to better serve customers. The grants, typically $25,000-$50,000, can support
pilot projects, new technology demonstrations, early commercialization projects, and the
development of best practices. Past successful projects have included development of non-
toxic, biodegradable, environmentally benign soy-based transformer oil, creation of a manual
on cyber security, and design of a web-based tracker for utility reliability.
The two main criteria for DEED funding are:
• Innovativeness — This means the project is not standard in the industry and there is
something unique or different about the project that has not been tried at many other
utilities; or a product that is not available that would be useful to the membership.
• Transferability — This means that other DEED member utilities could replicate the
project at their own utility or the knowledge gained or product developed would be
useful to others.
RESIDENTIAL THERMAL ENERGY STORAGE (TES) RESEARCH GRANT
PROJECT
APPA will supply a DEED Grant funding in the amount of$60,000 to Azusa Light &Water to
fund the proposed Residential TES Program that will demonstrate the value of combining TES
with small air conditioning (AC) units. The project is designed to show the effectiveness of the
entry of 1'BS into a vast market and increase public power utilities' ability to continue to
provide cost-effective and reliable service to all customers. The residential sector is estimated
to make up more than 50%of the AC demand in the nation and represents a significant portion
of our peak demand. The integration of TES systems with direct expansion, refrigerant-based
AC units for residential space cooling provides a fantastic opportunity for utilities to shift on-
peak demand to off-peak hours -- significantly improving system operating efficiencies and
reducing costs.
These operational benefits include avoiding capital investments for generation resources and/or
distribution system improvements, assimilating intermittent renewable resources to the system,
reducing minimum load conditions and increasing system reliability
The joint project with the Southern California Public Power Authority (SCPPA) is required to
be completed as approved by the DEED Board of Directors by 12/31/2014.
FISCAL IMPACT
APPA will provide a DEED Grant in the amount of$60,000 to Azusa Light&Water and there
is no financial impact on Azusa.
Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator
Attachment: DEED Grant Agreement
UB-13
Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement
Azusa Light& Water
Residential Thermal Energy Storage Systems
Grant# G-1045
This Grant Agreement("Agreement") is made and entered into by and between the American
Public Power Association ("APPA")and Azusa Light& Water("Grantee"and, collectively
with APPA,the"Parties").
WHEREAS,the Board of Directors of the APPA has established the Demonstration of
Energy&Efficiency Developments("DEED")program which is dedicated to improving the
operations and services of public power utilities by supporting and demonstrating its members'
innovative activities through research,funding and education;
WHEREAS,Grantee has submitted a proposed demonstration project, in a DEED
proposal submitted on 8/15/2013,which is incorporated herein by reference,with data including a
project description,the rationale, schedule,and estimated cost of the project,together with a
statement of why the project is widely applicable to members of APPA,and supporting technical
material; '`
WHEREAS Grantee has agreed to the DEED Board of Director's request to:
(a)Note here any changes to the proposal requested by the board
WHEREAS,the DEED Board of Directors has found the proposed project to be
meritorious and worthy of a DEED Grant;
NOW, THEREFORE, the Parties agree as follows:
1. Funding. APPA will supply it DEED Gran in the amount of$60,000 to Grantee.
Payment shall be made within 30 days of receipt of invoice at APPA,as further described in
Sections 9 and 10.
2. Project and Project Personnel. The project to be undertaken by Grantee is as
follows: "The proposed Residential Thermal Energy Storage(TES)Program will
demonstrate the value of combining TES with small air conditioning(AC) units. This will
allow entry of TES into a vast market and increase public power utilities' ability to continue
to provide cost-effective and reliable service to all customers. The residential sector is
Page 1 of 11
UB-14
Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement
Azusa Light &Water
Residential Thermal Energy Storage Systems
Grant#G-1045
estimated to make up more than 50%of the AC demand in the nation and represents a
significant portion of our peak demand. The integration of TES systems with direct
expansion,refrigerant-based AC units for residential space cooling provides a fantastic
opportunity for utilities to shift on-peak demand to off-peak hours--significantly
improving system operating efficiencies and reducing costs. These operational benefits
include avoiding capital investments for generation resources and/or distribution system
improvements,assimilate intermittent renewable resources to the system or reduce
minimum load conditions and increase system reliability."as more fully described in the
Grantee's proposal Residential Thermal Energy Storage Systems. The proposal,as well as the
document DEED Grant Requirements containing instructions related to preparing and submitting
Quarterly Reports,Final Reports,and Summary Abstracts,are incorporated herein by reference
and made a part of this Agreement. It is understood that the key personnel of this project are:
Paul Reid,Azusa Water& Light,Glendora,California; and
Bryan Cope,Director of Program Development,Southern California Public Power
Authority(SCPPA).
3. Term. The DEED Grant shall commence on the date of Agreement execution. The
Grantee is required to complete the project as approved by the DEED Board of Directors by
12/31/2014 as noted in the proposal. Any changes to the completion date must be addressed as
further described in Section 6.
4. Subcontractors. If Grantee proposes to hire a subcontractor to work on the project
and such subcontractor is not identified in Grantee's original project proposal, Grantee shall
request APPA's written permission to do so. In addition,Grantee shall ensure that APPA's rights
under this Agreement are not diminished by the use of a subcontractor. Any agreement between
Grantee and a subcontractor shall incorporate the terms and conditions of this Agreement,as
Page 2 of 11
UB-15
Demonstration of Energy&Efficiency Developments(DEED)Grant Agreement
Azusa Light&Water
Residential Thermal Energy Storage Systems
Grant#G-1045
necessary. At a minimum,any such agreement between Grantee and a subcontractor shall require
a subcontractor:
(a)to maintain books,records,and other documents and appropriate accounting
procedures and practices sufficient to reflect receipt and disposition of project funds and
total costs(direct and indirect)of the project,to retain such books,records and other
documents until the expiration of three years from the date of final payment or
completion of the project,and permit inspection and audit of such books,records or other
documents by APPA or its contractors;
(b)not to delegate or transfer to another party the responsibility for carrying out the
project or the use of project funds unless approved in writing by APPA and Grantee;
(c)to notify the Grantee and APPA of all proposed major project changes(such as those
identified in Section 6 of this Agreement)in a manner consistent with the provisions of
that Section,and to provide an opportunity for APPA and Grantee to disapprove any such
changes in a manner consistent with the provisions of Section 6 of this Agreement;
(d)not to terminate the project except for good cause,and if APPA or Grantee finds that
the subcontractor has terminated the project work without good cause,all funds paid by
Grantee to the subcontractor shall be returned,at the discretion of APPA,to Grantee or to
APPA;
(e)to return unexpended funds to Grantee or APPA,as determined by APPA,in the event
that the work is terminated for good cause or the work is completed prior to expenditure
of all funds;and
(f)to expressly agree that APPA owns a nonexclusive,royalty-free,perpetual,
worldwide,irrevocable license to use,copy,publish,create derivative works,distribute,
market and support,in all mediums including APPA's website,all information,materials
and work product created by subcontractor pursuant to this Agreement.
Page 3 of 11
UB-16
Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement
Azusa Light & Water
Residential Thermal Energy Storage Systems
Grant # G-1045
No project shall be commenced without an agreement in the form of Attachment A signed by the
subcontractor. Grantee shall provide APPA with a copy of the agreement between Grantee and
the subcontractor (including Attachment A) before any payment of the DEED Grant award will
be made.
5. Accounting and Records. Accounting for project funds (including receipts, Grantee
or other contributions, and expenditures) will be in accordance with generally accepted
accounting principles and practices, consistently applied, regardless of the source of funds.
Grantee shall maintain books, records, documents, and other evidence and accounting
procedures and practices sufficient to reflect properly (a) the amount, receipt, and disposition by
Grantee of all assistance received for the project and (b) the total cost of the project, including all
direct and indirect costs of whatever nature incurred for the performance of the project.
Grantee's facilities or such facilities as may be engaged in the performance of the project
for which the DEED Grant has been awarded, and records shall be subject at all reasonable times
to inspection and audit by APPA.
Grantee shall preserve and make its records available to APPA until the expiration of
three years from the date of final payment or completion of the project under this DEED Grant,
whichever is later.
All APPA assistance received by Grantee pursuant to this Agreement shall be expended
by Grantee solely for carrying out the approved project. Grantee may not delegate or transfer
responsibility for the use of such funds. Grantee shall comply with all terms and conditions of the
DEED Grant, to use grant funds efficiently and effectively within the approved budget, and to
supervise completion of the project in a diligent and professional manner. This responsibility
may be neither delegated nor transferred without written permission by APPA.
Page 4 of 11
UB-17
Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement
Azusa Light& Water
Residential Thermal Energy Storage Systems
Grant# G-1045
6. Project Changes. Grantee shall promptly notify APPA in writing by e-mail to
DEEDaPublicPower.org or by certified mail (return receipt requested)of all proposed major
project changes, including,but not limited to:
(a)major changes in the technical plans or specifications for the project;
(b)acceleration or deceleration in the time of performance of the project, or any major
phase thereof;
(c)major changes that may increase or decrease the total cost of a project;
(d)major changes that may affect the approved scope of a project; and
(e)major changed site conditions affecting the project.
APPA may disapprove project changes in writing not later than three weeks after receipt
of notice. Failure of Grantee to give notice, or disapproval by APPA of the proposed change,
shall result in disallowance of costs incurred that are attributable to the change.
Approved project changes that do not substantially alter the objective or scope of a
project may give rise to grant amendments to increase or decrease the dollar amount,the term,or
other provisions of the DEED Grant. A DEED Grant amendment shall be effected only by a
written amendment to this Agreement signed by both Parties. Requests for modifications from
this Agreement shall be submitted as far in advance as the exigencies of the situation will permit.
Each request for a modification shall contain at a minimum:
(a)A full description of the modification and the circumstances in which it will be used;
(b)A description of the intended effect of the modification; and
(c) Detailed reasons supporting the request,including any pertinent background
information that will contribute to a better understanding of the modification sought.
7. Termination. If,without written notification to APPA,the project has not been
initiated within six months of the effective date of this Agreement,the project will be subject to
termination by the DEED Board of Directors. Grantee shall not terminate the project except for
Page 5 of 11
UB-18
Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement
Azusa Light&Water
Residential Thermal Energy Storage Systems
Grant#G-1045
good cause. If APPA finds Grantee has terminated the project work without good cause,then it
shall terminate the DEED Grant award,and all APPA grant funds previously paid to Grantee
shall be returned as final settlement. In the event the project is terminated for good cause or
completed prior to expenditure of all funds provided by APPA,the proportionate share of APPA's
DEED Grant shall be refunded. Notwithstanding anything to the contrary in this Agreement,
APPA may terminate this Agreement at its option with or without cause by providing written
notice to Grantee. Unless otherwise stated in the termination notice,termination shall be
effective upon receipt of the notice. After the effective date of termination, neither Party shall
have any further obligation to the other under this Agreement except for Grantee's obligations
under the provisions where a continuing obligation is implied,and APPA's obligation to pay
Grantee a portion of the Agreement's fixed price equal to the percentage of work required by the
Agreement that is actually completed.
Grantee shall deliver to APPA or its designee(s)upon request all information and work in
tangible form created or compiled by Grantee or its subcontractor(s)in performing services under
this Agreement.
8. Press Release. Press releases and other public dissemination of information by the
Grantee shall acknowledge APPA support of the project through a DEED Grant.
9.Reports. Grantee shall prepare and submit to APPA quarterly project reports
according to directions in the document DEED Grant Requirements. These reports will be posted
to the DEED project database, located on APPA's website for viewing by DEED members.
Capturing the project in photos is encouraged. Electronic copies of project photos taken during
the course of the project term shall be submitted to DEED(a,PublicPower.org. By submitting
project photos to APPA, Grantee grants to APPA a non-exclusive limited worldwide license to
use the project photos online and offline for promotional purposes. According to instructions in
the document DEED Grant Requirements,Grantee also shall submit to APPA/DEED: (1)an
Page 6 of 11
UB-19
Demonstration of Energy& Efficiency Developments (DEED)Grant Agreement
Azusa Light& Water
Residential Thermal Energy Storage Systems
Grant#G-1045
acceptable,detailed final report relating to the conduct and results of the approved project,
describing activities,cost,bibliography,achievements,problems,results, and recommendations,
to be submitted within six(6)months of project completion;and (2)a completed "DEED Project
Summary Abstract;"and(3) any other deliverable as described in Grantee's original proposal or
grant approval letter.
APPA will withhold 25 percent of the DEED Grant award pending satisfactory completion of
said report and abstract. In the event the final report and abstract are not provided by the Grantee
by the due date, APPA may complete the final report and/or abstract itself or hire a third party to
do so. APPA may utilize up to the 25 percent withheld to pay for the costs of production and
reduce the amount otherwise available to Grantee in the same amount.
10.Payment. The standard method of project payment shall be based on invoices for
work completed to date. No more than 25 percent of the total DEED Grant award may be
provided to Grantee at the inception of the project except in rare instances when the DEED
program administrator may increase this amount up to a total of 50 percent due to special
circumstances.
1 l. Limited License.Grantee hereby grants APPA a nonexclusive, royalty-free,
perpetual,worldwide, irrevocable license to use,copy,publish,create derivative works,
distribute, market and support, in all mediums including APPA's website,all information,
materials and work product, including reports,abstracts,videos,guidebooks, software programs,
documentation, and other deliverables,created pursuant to this Grant(collectively,the"Work").
Any software programs especially developed by Grantee or its Subcontractors during the course
of the project,or substantially modified for use in the project,shall be supplied to APPA in a
form that may be used by others independently of Grantee's proprietary programs or computer
configurations. The Grantee shall incorporate a Section setting forth the substance of this Section
Page 7 of 11
UB-20
Demonstration of Energy&Efficiency Developments(DEED)Grant Agreement
Azusa Light&Water
Residential Thermal Energy Storage Systems
Grant tl G-1045
11 in its agreement with the Subcontractor. Contracts between Grantee and its Subcontractor
participating in the project shall contain similar provisions.
12.Representations and Warranties. Grantee represents and warrants for itself and
any subcontractors that:
(a)The Work and Subcontractor Work Product are original and do not infringe on the intellectual
property rights of any third party,or constitute defamation,invasion of privacy,or the violation of
any right of publicity or any other right of any party;(b)Grantee and subcontractor has obtained
all necessary licenses and/or permissions to use third party content that may appear in the Work
and/or Subcontractor Work Product; (c)Grantee and any subcontractors shall maintain in strict
confidence any confidential or proprietary information shared by APPA during the course of this
Agreement,and such information shall not be disclosed to any third party,either directly or
indirectly;and(d)Grantee has the unencumbered right to enter into this Agreement. Grantee
agrees to defend,indemnify,and hold harmless APPA,its officers,directors,members,and
employees for any losses,costs,damages,liabilities and expenses(including attorneys'fees and
court costs)arising out of any breach of the warranties set forth in this Section 12,
13.Fees. Grantee also warrants that no person or agency has been employed or retained
to solicit or secure this grant upon an agreement or understanding for a commission,percentage,
brokerage,or contingent fee,excepting bona fide employees or bona fide offices established and
maintained by Grantee for the purpose of securing grants or business. For breach or violation of
this warranty,APPA shall have the right to terminate this DEED Grant Agreement without
liability or in its discretion to deduct from the grant award,or otherwise recover,the full amount
of such commission,percentage,brokerage,or contingent fee.
14.Indemnifications. It is understood that this DEED Grant Agreement is not a joint
venture and that Grantee is not an agent of APPA. APPA assumes no liability with respect to
accidents,bodily injury,illness,breach of contract,or any other damages or loss,or with respect
Page 8 of 11
UB-21
Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement
Azusa Light& Water
Residential Thermal Energy Storage Systems
Grant# G-1045
to any claims arising out of any activities undertaken with the financial support of the APPA
DEED Grant,whether with respect to persons or property of Grantee or third parties. Grantee
shall indemnify(including court costs and attorneys'fees)APPA if APPA is made a party to any
litigation,arbitration,mediation or negotiations for activities connected with this DEED Grant
Agreement,unless APPA, its employees or agents are found to be grossly negligent or otherwise
directly at fault.
15. Taxes. Except with respect to taxes which may be due as a result of income to
APPA, Grantee and any subcontractor shall be responsible for payment of all taxes for which
Grantee, subcontractor or APPA may be liable in connection with this Agreement, including any
sales, use,or other tax owed for work products delivered or services performed by Grantee or a
subcontractor in connection with this Agreement. Except as required by law, APPA shall not
withhold federal, state or local income tax, or any other tax,from any payment to Grantee
pursuant to this Agreement.
The Parties hereto have executed this Agreement,effective as of the 30th day of October,2013.
American Public Power Association Azusa Light&Water
DEED Program
Name: Name: George F.Morrow
Signature:
Signature:
Title: Title: Director of Utilities
Date:
Date:
Page 9 of 11
UB-22
Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement
Azusa Light & Water
Residential Thermal Energy Storage Systems
Grant # G-1045
ATTACHMENT A
License Agreement:
Agreement made by and between 1) [a United States Citizen residing at
and born in 19 1 or 2) [a corporation located and doing
business at 1 (hereinafter referred to as the "Subcontractor") and, American
Public Power Association, a corporation of the District of Columbia located and doing business at 1875
Connecticut Avenue, Northwest, Washington, D.C., 20009 (hereinafter referred to as "Commissioning
Party").
WHEREAS, the Subcontractor is not an employee of the Commissioning Party; and
WHEREAS, the Subcontractor was commissioned by the Commissioning Party to create
(project name) (hereinafter the
"Subcontractor Work Product") at the request of and for the benefit of the Commissioning Party.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which the
parties acknowledge, the parties agree as follows:
1. Subcontractor grants APPA a nonexclusive, royalty-free, perpetual, worldwide, irrevocable
license to use, copy, publish, create derivative works, distribute, and market in all mediums including
APPA's website, the Subcontractor Work Product.
2. Subcontractor represents and warrants to the Commissioning Party the following:
a) that the Subcontractor Work Product is original and does not infringe the intellectual property
rights of any third party, or constitute defamation, invasion of privacy, or the violation of any right of
publicity or any other right of any party;
b) Subcontractor has obtained all necessary licenses and/or permissions to use third party content
that may appear in the Subcontractor Work Product;
Page 10 of 11
UB-23
Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement
Azusa Light& Water
Residential Thermal Energy Storage Systems
Grant# G-1045
c) Subcontractor shall maintain in strict confidence a confidential or proprietary information
shared by the Commissioning Party during the course of this Agreement, and such information shall not
be disclosed to any third party,either directly or indirectly;and
d) Subcontractor has the unencumbered right to enter into this Agreement.
3. Subcontractor shall indemnify and hold the Commissioning Party, its officers, directors,members
and employees harmless for any costs, including,but not limited to, attorneys fees,which arise out of any
breach of the warranties set forth in Section 2.
4. Subcontractor hereby acknowledges that [it or he/she] is an independent contractor for purposes of
this Agreement.
5. This Agreement may not be modified or amended unless it is in writing and signed by both
parties.
The parties hereto have executed this Agreement as of the date indicated below.
Subcontractor:
Name:
Signature:
Title:
Commissioning Party: American Public Power Association
Name:
Signature:
Title:
On this day of 20_.
Page 11 of 11
UB-24
APPROVED
Date I ( JJ • 4
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE '• A UTILITY
BOARD
FROM: GEORGE F. MORROW,DIRECTOR OF UTILITIES
DATE: NOVEMBER 25,2013
SUBJECT: 2014 ENERGY EFFICIENCY PROGRAM UPDATES
RECOMMENDATION
It is recommended that the Utility Board approve modifications to Azusa Light & Water's
Energy Efficiency Programs, effective January 1, 2014, and authorize periodic program updates
to be approved and reported to the Utility Board by the Director of Utilities, as needed to meet
cost effectiveness goals and changes in legislation and/or regulations.
BACKGROUND
Periodically Title 24 building standards and Title 20 appliance standards are updated and usually
become more stringent with respect to energy use in residential and non-residential buildings. As
codes and standards become more stringent, the amount of savings that can be claimed for
energy efficiency(EE)programs is also reduced,thus making the programs less cost effective. In
order to meet the State EE savings goals,the utility's EE programs require periodic updating to
match the rising and falling energy efficiency measures costs.
On January 1, 2014, new energy efficiency building requirements will come into effect as a part
of the California Energy Commission's (CEC) update to the State's Energy Efficiency EE
Standards, Title 24 of the State's Code of Regulations. These updates also represent the most
significant and complex changes to the Code since it was first adopted in 1978. The CEC
estimates that the new Title 24 standards will reduce energy usage by 20 to 30% in new
residential and nonresidential buildings.
As seen with past changes in the standards, the cost of new measures that exceed baseline
standards also increase and therefore the incentives offered by utilities to encourage the
customers and builders to take the extra step also increases until either the cost of the measures
come down over time or the codes and standards are further increased.
UB-25
EE Program Revisions
November 25,2013
Page 2
In response to these pending changes, the Azusa Light & Water's Energy Efficiency rebate
program portfolio has been reevaluated and modified accordingly to meet the new requirements
and to ensure that the most cost effective demand-side management services and energy
conservation programs are being offered to the customers effective January 1,2014.
Residential EnergvStar®Appliance Program
The overall Residential Rebate Program has been simplified by consolidating the multiple
residential appliance rebate programs into a single "Residential EnergyStar® Appliance
Program" (see attached Residential EnergyStar® Rebate Application form). The EnergyStar®
Refrigerator Program, EnergyStar® Air Conditioner Programs and the LED TV/Computer
Monitor program have been incorporated into this program, thus making the overall rebate
process simpler for the residential customers. Other new EnergyStar®Appliances may be added
over time and less cost effective items may be removed.
The LED Lighting Fixture, Lamps and Holiday Lights measure has also been modified for
clarity as to what LED lighting technologies are covered by the rebate. Holiday Lights have been
added and the incentive has been changed from 100% of the cost (up to $25), to a 50% of the
cost rebate,with a$100 per fiscal year limit.
In addition, the LED TV/Computer Monitor portion of the program has been adjusted to better
reflect the current state of the industry. The program was originally 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 then"new"LED technology. As the technology has matured,the cost
differential has narrowed, thus virtually eliminating the need for an additional incentive on the
larger screen LED TV monitors. The manufacturers have also started to add additional features
to the LED TV's, such as "Smart" capabilities, built in Blue Ray players and 3-D functionality,
all of which add to the cost of the basic LED TV.
The incentive will remain at the current 25% of cost level; however the following modifications
have been made to the program guidelines to ensure the program remains cost effective:
• Laptop computers, all in one computers(i.e. iMacs) and TV/monitors with screens 43"or
larger, are no longer being incentivized.
• Only the TV/monitor portion of"package deals" will receive prorated rebates based on
comparable monitor size.
See attached Residential EnergyStar®Rebate Application form for more program specifics.
Residential Home Weatherization Rebate Program
The Home Weatherization Rebate Program has been simplified and updated to incorporate new
measures like window film, shade screens,radiant barrier insulation and air conditioner tune-ups,
to name a few. The measures will be periodically evaluated for cost effectiveness and either
UB-26
EE Rebate Program Update
November 25,2013
Page 3
modified or eliminated when the measure no longer meets the cost effectiveness standards in
place at the time. The$250 total rebate limit for the program has been removed and will instead
be handled on a per measure basis.
See attached Residential Weatherization Rebate Program Rebate Application for additional
program specifics.
Business Energy Partnership Rebate Program
In the past, almost any energy saving measure would qualify for the 50% rebate, up to a
maximum of$10,000 per account under this program, no matter how cost effective the measure
proved to be at the time of installation. This program now incorporates a rebate effectiveness
calculation with a proposed upper rebate limit of $5.00/kWh saved. For example, lighting
retrofits usually have a rebate effectiveness of under $0.25/kWh (in some instances as low as
$0.02/kWh), whereas commercial clothes washers have been as high as $35.00/kWh making
them the least effective rebates in the portfolio. Codes and standards will also be included in the
determination if the energy efficiency measure qualifies for a rebate. There must be a verifiable
energy savings associated with the energy efficiency measure, consequently the measure should
"exceed" the code or standard and not just "meet" it. This will assure that there is an energy
savings associated with all applied measures and virtually eliminate the issue of customer "free-
ridership"within the program, such as the case with"Cool-Roofs",unless it can be substantiated
that the measure is an"early replacement"rather than a"retirement".
See attached Business Energy Partnership rebate form for additional program information.
Advertising and Website Revisions
The Energy Efficiency Programs advertising and the website will also require updating to
incorporate the new program application forms,guidelines and instructions.
From past experience and from customer surveys, it has been determined that the most effective
types of advertising and direct outreach for the residential customers have become:
• The annual"Cleaner Greener" calendar published each April.
• The Parks and Recreation guide tri-annual publication (predominately made possible by
advertising this sector of programs).
• Utility bill inserts targeting specific programs that might need a boost in participation.
The commercial and industrial customers require different types of advertising media, such as:
• Direct mail to the corporate leaders in the organizations.
UB-27
EE Program Revisions
November 25,2013
Page 4
• The Azusa Chamber of Commerce newsletter, when mailed to all businesses within the
City(also predominately made possible by advertising this sector of programs).
• CSR solicitations when business customers contact the Utility about high bills and other
energy related matters.
• Word of mouth within the business community.
Potential website revisions will include simplifying the webpages, making the pages more user-
friendly and providing simple,concise and easy to use instructions/guidelines and rebate forms.
FISCAL IMPACT
Funds have been budgeted in the amount of $518,600 for fiscal year 2013-14 for all energy
efficiency programs under account number 24-40-739-082-6625.
Prepared by: Paul Reid,Business Development/Public Benefit Programs Coordinator
Attachments:
1. Residential Energy Star Rebate Application
2. Residential Home Weatherization Retrofit Rebate Application
3. Business Energy Partnership Program
UB-28
LIGZUSTA
Residential ENERGY STAR®Rebate Application
Name Azusa Light and Water Account#
Service Address ,Azusa CA 91702
Mailing Address (if different from above)
Phone# Email Address
Please Check Each to Complete:
_Original or copy of sales receipt showing date of purchase,model number,price and quantity
_Original piece of packaging or Energy Guide Showing ENERGY STAR®Logo
_All applicable section(s)on rebate form are completed
_Signature and date on page two of this application
Product Eligibility Requirements Purchased Required Information
Central Air Conditioning/Heat Pumps
Minimum 14 SEER rating for packaged and split systems
Please submit invoice(proof of purchase)showing Seasonal Energy Efficiency Ratio
(SEER)rating and tonnage,(New construction is not eligible for this rebate)
SEER 14—14.9 $70/ton SEER Rating:
SEER 15—15.9 $100/ton
SEER 16—16.9 $110/ton Total Tonnage:
SEER 17—17.9 $120/ton
SEER 18+ $130/ton Rebate Total: $
Ceiling Fan $15/each Quantity:
ENERGY STAR®rated
(Limit 4 and not to exceed the cost of the product) Rebate Total: $
Clothes Washer $75/each Quantity:
ENERGY STAR®rated Rebate Total:$
Refrigerator/Freezer $75/each Quantity:
ENERGY STARS rated Rebate Total: $
Dishwasher $50/each Quantity:
ENERGY STAR®rated Rebate Total: $
Pool Pump $50/each Quantity:
MultipleNariable Speed Higb Efficiency Replacement
(Spa pumps not eligible) Rebate Total: $
UB-29
Electric Storage Water Heaters
ENERGY STAR®rated
Storage Type—30 Gallon or Greater $30/each Quantity:
Energy Factor(EF)0.93 or greater
Heat Pump Type—30 Gallon or Greater $300/each Quantity:
Energy Factor(EF)2.0 or greater
Rebate Total: $
Web Based Programmable Thermostats $50/each Quantity:
ENERGY STAR®rated
(Limit 2 per residence and not to exceed the cost of the product) Rebate Total: $
LED Lighting Fixtures,Lamps and Holiday Lights Quantity:
ENERGY STAR®rated 50%of product cost
(Rebate Limit$100/year) Rebate Total: $
CFL Touchier Lighting Fixtures $25/each Quantity:
ENERGY STAR®rated
(Rebate Limit$100 and not to exceed the cost of the product) Rebate Total: $
Occupancy Sensors&Photocells $10/each Quantity:
ENERGY STAR®rated
(Rebate Limit$100 and not to exceed the cost of the product) Rebate Total: $
LED TV/Computer Monitor(up to 42"diagonal) Quantity:
ENERGY STAR®rated 25%of product cost*
(Rebate Limit$750 each- *Excluding tax&recycling fee) Rebate Total: $
Participant Agreement
The energy-efficient product(s)marked above have been installed at the Azusa location indicated.I have attached a
copy of the itemized proof of purchase sales or invoice and copies of ENERGY STAR®Guide showing Energy
Efficiency information or other required documentation.I understand that falsifying information may lead to my
disqualification from this incentive program and that Azusa Light and Water will take appropriate actions to recover
the rebate amount.Funding is limited and this program is subject to change or cancellation without prior notice.I have
read and agree to these terms and to verification of installation by an Azusa Light and Water representative,or
contracted third party,as necessary.
Customer Signature Date
If you have any questions,call us at 626-812-5225 or check our website at azusalw.com for up-to-date rebate
requirements and qualifications.
Mail Application to:Azusa Light and Water,PO Box 9500,Azusa CA 91702-9500,Attn:Residential Rebates
Hand Deliver Application to:Azusa Light and Water,729 N.Azusa Ave.,Azusa,CA,Attn:Residential Rebates
Note:City of Azusa permits may be required for work done in the City of Azusa.Permits may be obtained from the
Building Division.You may contact them at 626-812-5293 for related questions. (Modified:1-1-14)
UB-30
AZUSA
1.1(BHT R WATFF
Residential Weatherization Retrofit Rebate Application
Name Azusa Light and Water Account#
Service Address ,Azusa CA 91702
Mailing Address (if different from above)
Phone# Email Address
Please Check Each to Complete:
Original or copy of sales receipt showing date of purchase,model number,price and quantity
_Original piece of packaging with the ENERGY STAR®Logo or product Efficiency Rating
All applicable section(s)on rebate form are completed
_Signature and date on page two of this application
Product Eligibility Requirements Purchased Required Information
Insulation
Attic must be at least R40 and R-19 for limited space.Walls must be at least R-13.
Attic $0.15/Square Foot(SF) Quantity(SF): Rebate: $
Wall $0.15/Square Foot(SF) Quantity(SF): Rebate: $
Radiant Barrier $0.15 Square Foot(SF) Quantity(SF): Rebate: $
Rebate Total: $
Attic Fan
Electric $50/each Quantity: Rebate: $
Solar $150/each Quantity: Rebate: $
Whole House $150/each Quantity: Rebate: $
Rebate Total: $
Duct Testing $50 maximum Rebate Total: $
Duct Sealing $50 maximum Rebate Total: $
Blower Door Air Leak Test $100 maximum Rebate Total: $
UB-31
Door/Window Weather Stripping and Caulking
$50 maximum Rebate Total: $
Air Conditioner Tune-Up and Recharge
$20/Ton Quantity: (Tons) Rebate Total: $
Skylights/Light Tubes $175/each Quantity:
ENERGY STAR®rated
(Limit 1 unit per room) Rebate Total: $
(Must have a solar heat gain coefficient(SHGC)of 0.60 or less and U-factor of 0.40
or less.Provide National Fenestration Rating Council(NFRC)label off each skylight
or light tube on the Manufacturer's order confirmation sheet.)
Window
Replacement $1.00 Square Foot(SF) Quantity(SF): Rebate: $
ENERGY STAR®rated
Film $0.25 Square Foot(SF) Quantity(SF): Rebate:$
Shade Screen $0.25 Square Foot(SF) Quantity(SF): Rebate: $
Rebate Total: $
Participant Agreement
The energy-efficient products)marked above have been installed at the Azusa location indicated.I have attached a
copy of the itemized proof of purchase sales or invoice and copies of ENERGY STAR®Guide showing Energy
Efficiency information or other required documentation.I understand that falsifying information may lead to my
disqualification from this incentive program and that Azusa Light and Water will take appropriate actions to recover
the rebate amount.Funding is limited and this program is subject to change or cancellation without prior notice.I have
read and agree to these terms and to verification of installation by en Azusa Light and Water representative,or
contracted third party,as necessary.
Customer Signature Date
If you have any questions,call us at 626-812-5225 or check our website at azusalw.com for up-to-date rebate
requirements and qualifications.
Mail Application to:Azusa Light and Water,PO Box 9500,Azusa CA 91702-9500,Attn:Residential Rebates
Hand Deliver Application to:Azusa Light and Water,729 N.Azusa Ave.,Azusa,CA,Attn:Residential Rebates
Note:City of Azusa permits may be required for work done in the City of Azusa.Permits may be obtained from the
Building Division.You may contact them at 626-812-5293 for related questions. (Modified:1-1-14)
UB-32
AZUSA
LIGHT & WATER
BUSINESS ENERGY PARTNERHIP PROGRAM
CUSTOMER INFORMATION:
Customer Name:
DBA Business Name: Federal Tax I.D.:
Account Number: Rate Schedule:
Contact Name: Phone Number.
Installabon Address: Azusa,CA Zp Code: 91702
CUSTOMERS MAILING ADDRESS FOR REBATE CHECK(IF DIFFERENT):
Name of Payee:
Adder: Zip Code:
PROJECT DETAILS:
Before kW Mir kW Anneal Hours of EetkaMed Equipment
MEASURE DESCRIPTION Connected Connected Operation Measure Coat ENkleacy
Totals
Estd.Project Cost Estd.Rebate: Final Est Cost
AGREEMENT CLAUSE:Your kwentlw reservation Is held dependent upon the t 1Iowine oorstatora:I 1 WWe eine es Wows:
1)To Sage thepoled nem30dies dInitial epibabnend Mali ebb 3odyedproleamnnxmoemesL2)ToModeAL&Wbradyasideskeemrlionand
isudYonddwMedea,epedlhdhheprond])Topwridedsagarose,aenbed.paidpnotalpusses*(e dip orbabel 4Tlisobisiinbamsedsex
per smug kWh sand$10,00003 ix 50%dthe sinusoid pi w bike go or knob),atddewr bless&Rebated be adxuled Awes Neale esoddeb
Mimi el In lime alappend d*hpaiedhUnuen}I)Reba.are so*al awea6lgdMes 7)Tht Me while sub'be sidled boons anrdellequee(asaarmd7
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(5)iea dam dale deo tapedbn 10)%lam upon=steno bmuam dib preened
Acceptance of Agreement
Signature: Tide:
Printed Name: Date:
Azusa Light and Water Use Only
Permit
MEASURE DESCRIPTOR SWSAVBIOB kV&SAMOS Ulu Cycle Ported Menem Coat Rebate Rebate Mood
Teter{ 1
Dale Impechd: Inspector Signature:
Approval Date, Check Request Date: Aoliodeed Sgneher
L
Last Modified Ods:111!2011
UB-33
APPROVED D-6
Date ii�Z�+i3
*111111,1
AZUy4A
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF AZUSA UTILITY
BOARD
FROM: GEORGE MORROW,DIRECTOR OF UTILITIE
DATE: NOVEMBER 25,2013
SUBJECT: RESOLUTION ON POLICY OF USE AND PROCEEDS FROM SALES OF
GREENHOUSE GAS ALLOWANCES
RECOMMENDATION
It is recommended that the Utility Board adopt the attached resolution on permissible usage and
proceeds from sales of allocated Greenhouse Gas Allowances.
BACKGROUND
Assembly Bill (AB) 32, "The Global Warming Solutions Act", was passed by the California
Legislature in 2006. The statute requires that California's greenhouse gas (GHG)emissions in
2020 be at or below the same levels as that of year 1990.The California Air Resources Board
(CARS)was charged with development of regulations to reach this goal,and the cap-and-trade
program is one of several tools designed by CARE to achieve the desired GHG reduction goal.
CARE issued the final regulation for its cap-and-trade program in December 2011.
The cap-and-trade program technically went into effect in January 2012 but its practical
implementation and enforcement began on January 1,2013.Under the terms of the cap-and-trade
regulations,entities doing business within the"covered"industry sectors in California,such as
Azusa Light& Water, will be allocated specific amounts of GHG Allowances to help them
absorb the impact of the regulation.GHG Allowance is an authorization to emit an amount of
greenhouse gas equivalent to one metric ton of carbon-dioxide(CO2e). Further,the regulation
requires that Azusa utilize the value of these allocated GHG allowances,including proceeds from
the sale of the allowances in the auctions conducted by CARE,for the benefit of its retail electric
ratepayers and consistent with the State's GHG reduction goals.
Under the terms of the regulation, Azusa Light & Water will be directly allocated GHG
Allowances for a seven-year period starting in year 2013 as shown below in Table 1. (The
allowances for 2013 and 2014 shown in the table have already been issued to Azusa.)
UB-41
Proceeds from Sales of GHG Allowances
November 25,2013
Page 2
Table 1: Azusa Light&Water Annual Allowances Allocation
Calendar 2013 2014 2015 2016 2017 2018 2019 2020
Year
Allowance 173,046 173,954 173,926 175,341 178,283 178,331 178,989 180,927
allocation
(MT)
Once GHG Allowances are distributed, publicly-owned utilities, such as Azusa, have three
options for their use:
1. Place the allowances in their Compliance Accounts to meet compliance obligations for
generation and/or energy imports for the purpose of serving their load;
2. Place the allowances in the Compliance Account of a Joint Powers Agency or public power
entity that generates power on their behalf; or
3. Make the allowances available for CARB conducted auction, using the proceeds from any
such sale(s)to benefit the customers they serve.
The regulation for the use of the proceeds from sale(s)of allowances stipulates the following:
"Auction proceeds and allowance value obtained by an electrical distribution utility
shall be used exclusively for the benefit of retail ratepayers of each electrical
distribution utility, consistent with the goals of AB 32, and may not be used for the
benefit of entities or persons other than such ratepayers."
In consideration of the above, Staff asks that the Board adopt a formal policy on the
use and utilization of proceeds from sales of the CARB allocated GHG Allowances.
Staff prepared for the Board's consideration a document titled Azusa GHG Allowance
Use and Proceeds Policy outlining permissible usages of the GHG Allowances and
utilization of proceeds from their sales. The recommended policy permits using the
allocated GHG Allowances to cover compliance obligations associated with electricity
imports serving Azusa load as well as California-interconnected power plants in which
Azusa is participant or power off-taker. The policy further stipulates that proceeds
from sales of allocated 0110 Allowances can be used to offer direct credits to electric
ratepayers and/or be used to purchase GHG Allowances and renewable energy and
products.
Staff seeks Board's approval, by resolution, of the attached Azusa GHG Allowance Use and
Proceeds Policy.
UB-42
Proceeds from Sales of GHG Allowances
November 25, 2013
Page 3
FISCAL IMPACT
None at this time
Prepared by: Yarek Lehr, Assistant Director of Resource Management
Attachments:
1 . Board Resolution Adopting Azusa GHG Allowance Use and Proceeds Policy
2. Azusa GHG Allowance Use and Proceeds Policy
RESOLUTION NO. 13-C91
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE
CITY OF AZUSA ADOPTING THE AZUSA ALLOCATED GHG
ALLOWANCE USE AND PROCEEDS POLICY
WHEREAS, the City of Azusa's Light & Water Department ("AL&W") maintains an
electric generation and distribution system for furnishing electricity to residents and businesses
of the City of Azusa("Azusa"); and
WHEREAS, AL&W, a publicly-owned utility, provides reliable, low cost,
environmentally responsible power to residents and businesses of the Azusa community; and
WHEREAS, the Azusa Utility Board is the governing body of its local publicly- owned
electric utility with the authority to adopt and implement the requirements of state law and
regulations; and
WHEREAS, the Azusa Utility Board is empowered by law to, among other, determine
what the reasonable cost of service, return on utility investment, and other prudent costs of
performing utility business and ensuring that utility operations are proper, fair and adequate; and
WHEREAS, the Azusa Utility Board is empowered by law to set rates for its utility's
customers, to include rates for electricity; and
WHEREAS, Assembly Bill 32 (AB 32) requires California to reduce its greenhouse gas
(GHG) emissions to 1990 levels by 2020; and
WHEREAS, the California Cap-and-Trade Program is a key tool designed by the
California Air Resources Board to achieve the state's GHG reduction goal; and
WHEREAS, AL&W is required to participate in the California Cap-and-Trade Program;
and
WHEREAS,AL&W has been allocated free GHG emission allowances for the benefit of
AL&W's ratepayers; and
WHEREAS, the California Cap-and-Trade regulation requires that any proceeds AL&W
generates from selling free allowances in the Cap-and-Trade auctions must be used exclusively
for the benefit of AL&W's electric ratepayers, consistent with the goals of AB 32.
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY
OF AZUSA DOES HEREBY FIND AS FOLLOWS:
SECTION 1. Consistent with applicable provisions of AB 32 and corresponding
regulations, the Utility Board/City Council of the City of Azusa herby accepts and asserts its role
as administrator of the AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY.
•
SECTION 2. The AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY
provides AL&W with appropriate guideline for use of proceeds from sales of allocated GHG
Allowances;
SECTION 3. The AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY
outlines the parameters for use of proceeds from the sale of allocated allowances in accordance
with the requirements of the Cap-and-Trade regulation;
SECTION 4. The Utility Board/City Council of the City of Azusa hereby approves and
adopts the attached AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY;
SECTION 5. The Director of Utilities, or his designee, is hereby authorized and directed
to implement and administer the AZUSA GHG ALLOWANCE USE AND PROCEEDS
POLICY.
PASSED, APPROVED and ADOPTED this 25th day of November, 2013.
/ % 7/2i
seph Romero Rocha
Mayor
ATTEST:
Je' r: . . ce Cornejo, .
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 13-C91 was duly adopted by the
Utility Board/City Council of the City of Azusa at a regular meeting of the Azusa Light& Water
Utility Board on the 25th day of November, 2013, by the following vote of the Council:
AYES: COUNCILMEMBERS: GONZALES, ALVAREZ, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: CARRILLO, MACIAS
dit •
Je ornej o, Jr.
City Clerk
AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY
Per Cap-and Trade regulations, allocated GHG Allowances and any proceeds from sales thereof
may be used only for the benefit of Azusa Light& Water electric ratepayers. In this regard:
1. Allocated GHG Allowances may be:
a. Used to directly cover Azusa compliance obligations associated with Azusa
energy imports into California for the purpose of serving Azusa load.
b. Transferred to cover Azusa compliance obligations associated with California
interconnected generation projects in which Azusa is power off-taker or
participant.
2. Proceeds from sales of Allocated GHG Allowances will be used as follows:
a. Credited to Azusa's electric ratepayers in the form of a Power Cost Adjustment or
other such similar direct ratepayer credit or benefit; and/or
b. Investments in renewable resources such as generation projects or the purchase of
renewable electricity or RPS compliance instruments; and/or
c. Purchases of GHG Allowances or other AB 32 compliance instruments needed
for AL&W's load and generation obligations.
APPROVED D-9
Date ILf,--113
AZUSA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F.MORROW,DIRECTOR OF UTILITIES
DATE: NOVEMBER 25,2013
SUBJECT: APPROVE THE PURCHASE OF ELECTRIC AUTOMATED METER
READING(AMR)METERS FROM MCAVOY&MARKHAM
RECOMMENDATION
It is recommended that in accordance with Section 2-523 (d),no competitive market... under
Article VII,Chapter 2 of the Azusa Municipal Code,the Utility Board approve the issuance of a
Purchase Order to McAvoy& Markham, of Irvine, CA, in an amount not-to-exceed $19,224
inclusive of sales tax and freight charges to Azusa for purchasing 360 AMR meters.
BACKGROUND
The city stocks in its inventory,Residential Electric Meters that have Automated Meter Reading
(AMR)technology installed,for our 13,000+residential customers.These meters are used:
a) to replace defective meters that are found in the field
b) for difficult to reach premises where access is limited,and
c) for new residential construction such as the Rosedale Subdivsion
Azusa Light&Water personnel install approximately 800 to 1,000 of these specialized meters
per year.About 4,900 of these AMR meters have already been installed.
FINDINGS
The Purchasing Division solicited informal bids from two known vendors who sell this type of
meter. Only one vendor submitted a viable bid for the above mentioned AMR meters. The
second bidder,One Source Distribution of Buena Park,CA,has informed us that the meters they
intend to supply for their bid,must first be modified to meet our specification.
UB-55
Purchase of AMR Meters
November 25,2013
Page 2
This makes OneSource Distribution supplied AMR meters less than suitable for our purposes,
thereby making McAvoy & Markham a "sole source" vendor for these meters. The results are
listed below, in terms of delivered price inclusive of sales tax and freight charges to the City of
Azusa.
Vendor Location Total Price Lead Time
McAvoy& Markham Irvine, CA $19,224 10 weeks ARO
FISCAL IMPACT
There is no fiscal impact to the General Fund, as these meters will be purchased under Central
Stores Inventory Account number 33-00-000-000-1601, then will be charged to the appropriate
Electric Division account as they are checked out of Stores.
Prepared by: Tony Garcia—Purchasing Division
UB-56
APPROVED
Date \ 1 I Z5I 13 D- 13
AZ� 6M� �USA
w�Trr
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: NOVEMBER 25, 2013
SUBJECT: RESOLUTION AMENDING THE WATER FUND BUDGET BY $111,641 TO
PAY ARBITRAGE REBATE ON 2003 SERIES A CERTIFICATES OF
PARTICIPATION TO INTERNAL REVENUE SERVICE BY NOVEMER 30,
2013
RECOMMENDATIONS
It is recommended that the Utility Board approve attached resolution to amend the FY 2013-14,
water fund operating budget by $111,641 in order to pay the arbitrage rebate on the 2003 Series
A Certificates of Participation (COP) to the Internal Revenue Service by November 30, 2013.
BACKGROUND
In 2012, staff undertook a project to refund long term debt issued in 2003, which included the
2003 Series A Certificates of Participation for the water utility ($8.715 million), and the 2003
Series B Certificates of Participation for the electric utility ($5.82 million). Both of these issues
were tax exempt series, similar to tax exempt bonds, and the restricted reserve funds held by the
City for purpose of debt security and repayment were subject to an investment yield limitation.
By law, the City is required to conduct a review of investment earnings or yields on investments
of bond reserve funds every 5 years, or following debt refunding. Such a review was recently
conducted on the 2003 COPs in light of the refunding that occurred in 2012. The review showed
that the yield limitation of 4.5%was exceeded for the 2003 Series A COP reserve funds, and as a
result, the excess yield must be paid to the Internal Revenue Service by November 30, 2013.
The yield was exceeded during the 2012 refunding process when the refunding team negotiated a
breakage fee with Citigroup of an investment agreement. Most of the breakage fee proceeds
were used to lower the amount of debt that required refunding, however, a portion of the
proceeds did cause the yield to exceed the yield limitation on the 2003 debt. While exceeding
the yield limitation will cost the water fund about $111,640.92, this cost is far outweighed by the
savings that resulted from the refunding, which was about$6.1 million in cash flow.
UB-75
Budget Amendment
November 25,2013
Page 2
FISCAL IMPACT
$111,641 will be taken from water fund balance and placed into account no. 32-40-721-530-
6613, Bond Arbitrage, to make payment to the Internal Revenue Service. Since this budget
amendment is over$100,000,Azusa Municipal Code requires it be approved by resolution.
Prepared by:
Cary Kalscheuer,Assistant Director—Customer Care&Solutions
Talika Graham,Utilities Administrative and Financial Services Manager
Attachment:Resolution Amending Water Utility Budget
UB-76
RESOLUTION NO. 13-C89
A RESOLUTION OF THE CITY COUNCIL/UTILITY BOARD OF THE
CITY OF AZUSA, CALIFORNIA, AMENDING THE FISCAL YEAR 2013-
2014 OPERATING BUDGET FOR THE WATER UTILITY TO PAY FOR
ARBITRAGE REBATE.
WHEREAS, by law, the City is required to conduct a review of investment earnings or
yields on investments of bond reserve funds every 5 years, or following debt refunding, formally
known as an arbitrage rebate calculation; and
WHEREAS, the review showed that the yield limitation was exceeded for the 2003
Series A Certificates of Participation reserve funds, and as a result, the excess yield must be paid
to the Internal Revenue Service; and
WHEREAS, on June 17, 2013, City Council of the City of Azusa adopted the Fiscal
Year 2013-2014 Operating Budget for Azusa Light and Water, which did not provide for
payment of arbitrage rebate; and
WHEREAS, Azusa Municipal Code Section 2-450 requires that all budget amendments
between $100,000 and $1 million be approved by resolution; and
WHEREAS, an amendment in the amount of $111 ,641 to the Water Utility Operating
budget will be adequate to pay arbitrage rebate on 2003 Series A Certificates of Participation to
the Internal Revenue Service.
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF
AZUSA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the Water Utility Fiscal Year 2013-2014 Operating Budget is hereby
amended in the amount of $111 ,641, budget expense account number 32-
40-721-530-6613.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 25th day of November, 2013.
frj laj4 ,//14
seph Romero Rocha
Mayor
ATTEST:
J-ff e• L) rence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 13-C89 was duly adopted by the
Utility Board/City Council of the City of Azusa at a regular meeting of the Azusa Light&Water
Utility Board on the 25th day of November, 2013, by the following vote of the Council:
AYES: COUNCILMEMBERS: GONZALES, ALVAREZ, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: CARRILLO, MACIAS
mar. dir
!_._r' yrs
r- a���ce Cornejo, .
City Clerk
APPROVED D-14
Date II
MITA Fr
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA
UTILITY BOARD
FROM: GEORGE F.MORROW,DIRECTOR OF UTILITIES
DATE: NOVEMBER 25,2013
SUBJECT: APPROVAL TO EXECUTE A CONFIDENTIALITY AGREEMENT WITH
TENASKA ENERGY,INC.
RECOMMENDATION
It is recommended that the Utility Board approve the execution of a confidentiality agreement
with Tenaska Energy by the Director of Utilities.
BACKGROUND
Azusa Light & Water, through its Power Resources group, transacts with various
counterparties for the purpose of optimizing power purchases and sales for the City.Tenaska
Energy is a private corporation that provides products and services of interest.In that regard,
AL&W would like to establish a business relationship with Tenaska Energy for the purpose of
including them in future Requests for Proposals for energy and capacity procurements as well
as for short term trading.However,prior to entering into any potential transaction in the future,
Tenaska requested that their information be kept confidential since they are privately owned.
Recognizing the City is subject to the California Public Records Act,Tenaska has provided the
City with a letter agreement attached hereto.The latter agreement has been reviewed by the
City Attorney's office and deemed legally acceptable.
FISCAL IMPACT
There is no fiscal impact as a result of the execution of this letter agreement.
Prepared by: Richard Tones,Power Resources Coordinator
Attachment:Tenaska Energy Confidentiality Agreement
UB-79
Suite TENASKA® ENERGY
1044 N. 115 Street, e 400
Omaha,Nebraska t, uit4446
402-691-9550
INC. FAX:402-691-9575
I November 19, 2013November 18, 204-3
Name
Company
Address
City, State Zip
Re: Confidentiality Agreement, Tenaska Energy, Inc.
Dear •
Tenaska Energy, Inc. ("Tenaska") is a private corporation that wishes to keep all financial
information confidential. Please indicate by signing below that ("Company")
agrees for itself, subsidiaries, affiliates and employees to (i) maintain strict confidentiality of all
non-public, financial information submitted by Tenaska to demonstrate creditworthiness, (ii) not
disclose such information to any third party, (iii) not disclose to any third party the fact of,
circumstances or reasons for Tenaska's disclosure,and (iv)ensure that such information will be
used solely for the purpose of Tenaska maintaining a line of credit with Company. Company
further agrees that it will return all information provided by Tenaska,with all copies thereof, upon
written request.
Notwithstanding the above, Company may disclose such information when required by applicable
law, rule, regulation, court order, or order of any governmental or regulatory authority having
jurisdiction. If Company is requested pursuant to or required by applicable law or regulation, or by
legal process to disclose such information, Company agrees that it will provide Tenaska with
prompt notice of such request to allow Tenaska to obtain a protective order or other relief to
prevent or limit disclosure of the confidential information. Tenaska recognizes that Company is
subject to the California Public Records Act
Please return this letter to Mark Holler by facsimile at(817)462-1038. Upon receipt, he will
forward a credit package for Tenaska to your attention.
Thank you for your assistance in this matter. Any questions can be directed to Mark at(817)303-
1113.
Sincerely,
TENASKA ENERGY, INC.
Timothy G. Kudron
Senior Vice President
Accepted and agreed to: COUNTER-PARTY NAME
By:
Name:
Title:
Date:
UB-80
APPROVED
Date E-1
AL U,5A
TS--
SCHEDULED ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW,DIRECTOR OF UTILITIES
DATE: NOVEMBER 25, 2013
SUBJECT: AUTHORIZE THE SOLICITATION OF PROPOSALS FOR EMERGENCY
AND SPECIAL PROJECT ELECTRIC EQUIPMENT/MATERIAL SUPPLIER
RECOMMENDATION
It is recommended that the Azusa Utility Board approve the solicitation of proposals to acquire
emergency, special project, and critical needs equipment/materials, and related services, from
one or more local/regional suppliers as per attached Scope of Work.
BACKGROUND
Natural disasters, such as windstorms, earthquakes, and hurricanes, can cause significant damage
to electric utility facilities. Such events typically result in prolonged electricity outages to
thousands of customers. As a result, the Electric Division reviewed its emergency preparedness
related to disaster recovery.
In addition to securing outside mutual aid for manpower assistance, staff also identified the need
for additional outside service providers who can supply material, equipment and supplies on
short notice to help with disaster recovery. Emergency suppliers may also be able to augment
existing day-to-day purchasing for special/customer projects, for urgent needs and/or for critical
inventory restock.
During a disaster recovery period, the availability of needed materials or supplies may be limited
and involve delays. It is impractical to acquire/warehouse substantial quantities of power poles,
transformers, cables and electric wire (including various hardware or accessories) as storm stock
ahead of time due to lack of space limitations and monetary carrying cost. There is also limited
manpower for handling,processing or securing the valuable inventory.
Staff desires to prepare for emergency conditions while conserving financial resources. A local
emergency supplier who can store and make available electric utility related materials will
UB-81
Emergency Electric Supplier
November 25,2013
Page 2
expedite disaster recovery and perhaps improve the efficiency of normal and/or special stock
acquisition. AL&W has identified several such suppliers in the region.
Staff recommends approval of the attached conceptual Scope of Work and that the Utility Board
authorize staff to solicit proposals from local/regional vendors.
FISCAL IMPACT
There is no fiscal impact as a result of soliciting proposals at this time.
Prepared by: F. Langit Jr., Assistant Director of Electric Operations
Attachment: RFP Scope of Work of Emergency Suppliers
UB-82
ELECTRIC DIVISION STORM STOCK EMERGENCY SUPPLIER
SCOPE OF WORK
November 2013
Part I- Emergency/Storm Stock:
1) Stock emergency materials or electric utility related bulk supplies in specified
quantity and reserve these materials or supplies in a secured storage distribution
facility located within a 60 mile radius from Azusa Light&Water yard.
2) Furnish and provide access to a joint use automated inventory system such as bar
codes, RFID or equivalent inventory system for efficient identification and query
of available inventory reserves for use in an emergency or disaster recovery
3) Provide and make available 24 hour emergency delivery service FOB from
secured storage distribution facility to Azusa Light & Water designated delivery
yard or work sites for large bulk items such as power poles, transformers,
underground cable on reels, conductors and various assembled pole hardware &
materials.
4) Arrange, organize and assemble Electric Division designated warehouse facility
and automate the recording of existing electric related inventory,materials or bulk
supplies. Merge the existing inventory records of Electric Division with storm
stock emergency materials that will be stored in a secured storage distribution
facility.
Part II- Regular Procurement and/or Work Order Requisition:
5) Competitively procure and deliver at work sites regular stock items ordered by
Electric Division for use in customer service related work orders. Competitive
procurement to be in substantial conformance with the City of Azusa Municipal
Code on Purchasing Procedures.
6) Furnish and deliver assembled construction kits to either Electric Division
warehouse or job sites as specified by Electric Division standards method of
construction for both overhead and underground electric utility constructions
7) Provide and make available limited pick up service of materials or supplies by
Electric Division personnel as an alternate urgent delivery service. Assist in
loading materials or supplies to City owned transportation equipment.
8) Provide regular replenishment of regular stock inventory used for maintenance at
existing Electric Division warehouse and ensure adequate min/max inventory
levels are maintained year round for immediate use.
UB-83
Information Item F- 1
Presented I3
r
LIGHT
R SA
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: NOVEMBER 25, 2013
SUBJECT: FISCAL YEAR 2013-2014 FIRST QUARTER BUDGET REPORTS FOR
WATER AND ELECTRIC FUNDS
The attached reports include unaudited budget-to-actual performance for the Water and Electric
Funds through September 30, 2013.
HIGHLIGHTS
Both Water and Electric yielded positive operating results (revenues exceeded expenses) for the
first quarter ended of$1,423,553 and $370,050,respectively.
Savings from refinancing the 2003 A & B Certificates of Participation are now being realized
resulting in lower debt service requirements, which has allowed both Utilities to maintain
healthy debt service coverage ratios.
WATER
Sales of water through first quarter were 5.1% lower than the first quarter of prior fiscal year.
This decrease is primarily due to conservation efforts as a result of Phase II Drought conditions.
The table below shows 10-year, first quarter sales and billing trends for the Water Utility:
1st Quarter Water Sales/Billings
FY CCF Sales Billings
04-05 2,982,785 $4,638,801
05-06 2,911,324 $4,242,006
06-07 2,118,839 $3,227,055
07-08 2,875,872 $4,659,711
08-09 2,498,047 $4,073,146
09-10 2,490,393 $4,622,114
10-11 2,428,273 $5,111,232
11-12 2,417,523 $5,156,389
UB-84
Quarterly Financial Report
November 25,2013
Page 2
12-13 2,581,898 $5,464,417
13-14 2,450,574 $5,240,322
While the Water Utility's reserve policy is set to $25 million, the Fund has adequate cash on
hand with an estimated reserve of about $22.8 million through the first quarter ended. This is a
7%increase from the unaudited financial report for Fiscal Year Ended June 30, 2013.
Positive operating results and lower debt service requirements has resulted in the Water Fund
exceeding the minimum debt coverage requirement of 1.25 with estimated debt coverage of 2.43
for the period ended.
ELECTRIC
Sales of electricity through the first quarter ended have steadily increased over the past 3 years.
The table below shows 10-year, first quarter sales and billing trends for the Electric Utility:
1st Quarter Electric Sales/Billings
FY kWh Sales Billings
04-05 71,964,573 $7,926,646
05-06 69,354,645 $7,739,171 _
06-07 52,882,099 $6,540,829
07-08 74,574,610 $8,636,012 _
08-09 74,709,048 $9,921,295
09-10 71,339,048 $8,787,362
10-11 66,556,732 $9,579,024
11-12 68,825,090 $10,687,879
12-13 71,583,192 $10,922,876 _
13-14 71,811,811 $10,996,464
The Power Cost Adjustment(PCA) in effect through the first quarter of FY 13-14 generated over
$1.3 million and helped meet expenditure requirements.
Positive operating results and lower debt service requirements has resulted in the Electric Fund
exceeding the minimum debt coverage requirement of 1.10 with estimated debt coverage of
10.47 for the period ended.
•
The minimum reserve policy requirement of$12.6 million has also been exceeded. Cash/Reserve
is made up of cash on hand and cash held in rate stabilization fund. The total of these two are
approximately$19.7 million,a slight increase from the unaudited financial report for Fiscal Year
Ended June 30,2013 which is mainly attributed to the increase in retail sales.
Prepared by: Talika M. Graham,Utilities Administrative and Financial Services Manager
Attachments:
1. Water Utility 1st Quarter Budget Report
2. Electric Utility 1st Quarter Budget Report
UB-85
Water Utility Quarterly Budget Report
1st Quarter Ended September 30, 2013
(UNAUDITED)
1st Qtr Cnded
Consumption and Cash Reserves Prior FY F.nd Percent
9/30/13 i
Consumption - CCF: 8,094,072 2,450,574 30%
Cash and Investments: ') $ 21,388,067 $ 22,811,620 107%
Budget Line Item
Budget Actual Thru Percent of
13-14 9/30/13 Budget
Revenues
Retail Billing Amounts (2) $ 17,853,365 $ 5,240,322 29%
Other Revenues 2,106,400 709,441 34%
Interest Income 200,000 0 0%
Total Revenues $ 20,159,765 $ 5,949,763 30%
Expenses
Production 2,736,945 761,794 28%
Purchased Water 3,153,260 471,508 15%
Transmission and Distribution 2,569,960 616,131 24%
Customer Accounting and Sales(3) 4,443,550 1,076,296 24%
Administrative and Engineering 798,720 183,991 23%
Franchise Fees 357,000 109,122 31%
Subtotal Expenses $ 14,059,435 $ 3,218,842 23%
Capital Expenditures / Debt Service:
Debt Service Requirements(4) 4,679,740 1,169,937 25%
Capital Improvement Budget(5) 2,074,029 137,431 7%
Total Expenses $ 20,813,204 $ 4,526,210 22%
Adjustments
Transfers Out(6) - - N/A
Total Expenditures and Transfers Out $ 20,813,204 $ 4,526,210 22%
Net Increase (Decrease) in Cash $ (653,439) $ 1,423,553
Debt Coverage Ratio(7) 1.38 2.43
Notes:
(1) Prior FY End Source: General Ledger Claim on Cash account from FY 12/13 unaudited trial balance. Reserve Policy is $25.
million.
(2) Based on Customer Information System Billing Amounts through 9/30/2013.
(3) Includes 65% of Customer Service Fund Expenses less offsetting revenue and other miscellaneous costs.
(4) Estimated Principal and Interest obligation on 2006 and 2012A Revenue Bonds thru 1st 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 9/30/2013, no transfers have been
made.
(7) Total Revenues less Production, Purch'd Wtr, T&D, Cust Acctg, & A&G divided by Debt Service Payments.
Minimum debt coverage requirement is 1.25 per bond financing agreements.
UB-86
Electric Utility Quarterly Budget Report
1st Quarter Ended September 30,2013
(UNAUDITED)
Consumption and Reserve Info Prior FY End Consumption
QtrEr:ded Percent
9/30/13 3
Consumption-kWh: 247,422,942 71,811,811 29%
Cash/Reserve Prior Fiscal Year End") $ 19,305,707 $ 19,675,757 102%
{ Budget Actual Thur. Percent of
Budget Line Item 13-14 9/30/13 Budget
Revenue
Retail Billing Amounts(2) $ 36,827,290 $ 10,996,464 30%
Resale Revenue(3) 7,500,690 1,334,357 18%
Other Miscellaneous Revenue 95,000 62,708 66%
Interest Income 120,000 - 0%
Total Revenues $ 44,542,980 $ 12,393,529 28%
Expenses
Purchased Power(3) $ 29,871,320 $ 7,368,614 25%
Transmission/Dispatching 5,394,000 1,372,411 25%
Operations and Maintenance 3,769,900 785,380 21%
Administrative and General(') 2,438,260 587,463 24%
Franchise and In-Lieu-Tax 3,683,800 1,113,854 30%
Subtotal Expenses $ 45,157,280 $ 11,227,720 25%
Capital Expenditures/Debt Service
Debt Service Requirements(s) $ 871,135 $ 217,783 25%
Capital Outlays and Projects(6) 1,901,262 577,976 30%
Total Expenditures $ 47,929,677 $ 12,023,480 25%
Adjustments
Transfers Out 28,915 - 0%
Total Expenditures and Transfers Out $ 47,958,592 $ 12,023,480 25%
Net Increase(Decrease)in Cash/Reserve $ (3,415,612) $ 370,050
Debt Coverage Ratio(') 3.52 10.47
Notes:
(1)Prior FY End Source:General Ledger Claim on Cash and Rate Stabilization accounts from FY 12/13 unaudited trial
trial balance.Reserve Policy is$12.6 million.
(2)Based on Customer Information System Billing Amounts through 9/30/2013.
(3)Source: Power Resources Division.
(4)Includes 35%share of Fund 31-Admin&Consumer Services Budget less offsetting revenues and other misc.costs.
(5)Estimated Principal and Interest obligation on 2003 and 2012B Revenue Bonds thru 1st quarter of fiscal year.
(6)Capital Outlay accounts 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.
UB-87
Information Item
Presented I i 11 \\
F-2
mum FT
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE MORROW,DIRECTOR OF UTILITIES
DATE: NOVEMBER 25,2013
SUBJECT: AZUSA WATER SUPPLY UPDATE
The Baldwin Park Key Well, a key indicator of the groundwater supply in the Main San Gabriel
Water Basin is currently at elevation 196.49 November 18, 2013. The historic low at the Key
Well was 189.2 feet on December 3,2009. The elevation of the Key Well increased at about 0.61
feet per week for the last two weeks due to Watermaster deliveries of imported water from USG-
3 beginning in October,but which ended the first week of November,USG-8 was turned back on
Thursday,November 21, to deliver 8,000 AF at 250 cfs (16 days of flow). Rain is necessary for
full recovery of the Key Well.
The new water year began October 1, and rainfall to November 18 is .54 inches,measured at the
Pasadena powerhouse.This is 20%of average.
Upper San Gabriel Valley MWD replenishment delivery to the River was turned on October 2,
but ended the first week in November and will resume delivery November 21. Currently, the
North Pit of the Canyon Basin is 20 feet below overflow and dropping at 1 foot per week; the
South Pit is 29 feet below overflow and dropping 3 feet a week.
River inflow to San Gabriel Dam is currently 12.0 cfs. The Pasadena Conduit is back in service
and, on November 14 began delivering water from San Gabriel Reservoir to the Committee of
Nine Canal.
The Azusa Treatment Plant is delivering approximately 3.5 million gallons per day(MGD)to the
system. Current Azusa system demand is 17.5 MGD which is being met by the wells and the
treatment plant.
The amount of water behind Morris Dam is 8,286.3 AF, and the amount of water behind San
Gabriel Dam is 2,810.0 AF. Cogswell Dam is nearly dry, below 49.5 AF. The maximum
capacity of all three reservoirs is 83,478 AF; the current combined storage is 11,145.8 AF, 13.4
percent of capacity, including minimum pool. Usable storage remaining above minimum pool is
1,139 AF.
UB-88
r ,
Water Supply Update h ;;;rib
c
November 25,2013 -'
Page 2
Continued water conservation will be necessary to reduce demand. Without rain, the recovery
will be slow. USG-3 was turned off November 3, but was turned on again November 21 for
approximately 16 days.
Statewide, water availability conditions are similar to our local conditions. Last spring, the State
Water Project allocation for San Gabriel Valley MWD,our local supplier, was set at 35%of their
"normal" allotment of 28,800 AF. So far, it appears that the allocation for the upcoming year
could be significantly lower unless rainfall increases and snowpack in the Sierras is normal or
better. The preliminary estimate of the upcoming allocation remains 15%. Currently the
snowpack at Donner Summit continues to be nearly non-existent with a current water content of
17% or less in what little snow they can find. Sierra runoff is necessary to supply water to the
State Water Project
Around the State, reservoir levels are faring no better than the snowpack. San Luis Reservoir, an
important storage reservoir is currently at 21%of capacity. Metropolitan Water District says they
have enough stored water to last through one bad winter, but without rain, next year could be
difficult.
Prepared by: Chet F.Anderson P.E.,Assistant Director-Water Operations
UB-89