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HomeMy WebLinkAboutAgend Packet - April 25, 2011 - UB 1 AZUSA /1011T A '.YATER AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AZUSA LIGHT & WATER APRIL 25, 2011 729 N. AZUSA AVENUE 6:30 P.M. AZUSA,CA 91702 AZUSA UTILITY BOARD ROBERT GONZALES CHAIRPERSON KEITH HANKS JOSEPH R. ROCHA VICE CHAIRPERSON BOARD MEMBER URIEL E. MACIAS 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. ELECTION OF OFFICERS 1. Election of New Chairperson and Vice Chairperson. Recommendation: Elect by majority vote a new Chairperson and Vice Chairperson to serve as officers of the Utility Board. cap- 19F- Election of Ord01-07.pdf • Officers.pdf • •1 001 B. 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.) C. UTILITIES DIRECTOR COMMENTS D. UTILITY BOARD MEMBER COMMENTS E. 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 January 31, 2011 as written. UB Min Jan-11.pdf 2. Project W-266A Water Main Replacement Inspection Services Contract. Recommendation: Approve the award of professional services agreement to SA Associates for inspection services for Project W-266A, Water Main Replacement Project in Hilltop in Azusa, San Bernardino Road in West Covina and Los Angeles County, and Workman Avenue in West Covina, in amount not-to-exceed $58,000. Insptn Svcs for W-266A.pdf 3. Sterling Technologies, LLC Blanket Purchase Order Amendment. Recommendation: Approve of amendment to blanket purchase order number 1111798 with Sterling Technologies, LLC for purchase of additional water treatment chemicals in amount of$32,000. BPO Sterling Tech.pdf 2 002 4. Supervisory Control and Data Acquisition (SCADA) System Contract. Recommendation: Award a contract to Survalent Technology Incorporated to furnish and install a SCADA system for monitoring the electric substations in amount not-to-exceed $82,750. SCA DA-Surva lent.pd F. SCHEDULED ITEMS 1. Bill Payment Contracts Extension. Recommendation: 1) Approve the extension of contract with Infosend for two years until February 1, 2013 for bill print/mail and electronic bill presentment/payment services; and for Paymentus to process pay-by-phone and web payments; and 2) amend the contract purchase order for Infosend to add $181,000 to cover this period. Bill Pay Contracts.pdf 2. Solicitation of Request for Proposals to Evaluate the Azusa Hydroelectric Plant and Conduit. Recommendation: Authorize staff to solicit proposals from qualified consultants to evaluate the condition of the Azusa Hydroelectric Plant and Conduit from an acquisition feasibility standpoint. Azusa Hydro Project.pdf 3. Refuse Rate Adjustment Public Hearing Notice Authorization. Recommendation: Authorize staff to print and mail advanced notice of public hearing to be held June 20, 2011 to consider the annual refuse rate adjustment and "true up." ILT Refuse Rate 2011 Refuse Rate Residential.pdf Comae rcial.pdf Adjrmt.pdf Public Hearing Notice. 4. Water Supply Update and Ratification of Cancellation of Phase II Water Shortage Declaration. Recommendation: Ratify the City Manager's and Director of Utilities' recommendation to cancel the Phase II Water Shortage Declaration effective May 1, 2011 due to an improved water supply situation, while strongly encouraging continuation of water conservation measures by consumers. 94 Wtr Suply Update.pdf 3 003 5. Local Resource Adequacy Capacity Purchase Agreements for 2012. Recommendation: Approve two Local Resource Adequacy Capacity purchases totaling 31 Megawatts ($883,200) from NRG and Calpine; and authorize the Director of Utilities to execute confirmation agreements. Local RAC Purch.pdf RFP for System& Local RAC.pdf G. STAFF REPORTS/COMMUNICATIONS 1. Emergency Repair Work at 543-529 Virginia Ann Drive Emergency Conduit Repair.pdf 2. Novinium Cable Rejuvenation Pilot Project Update Cable Rejuvenation.pdf 3. Small Business Audit and Retrofit Progam to Include"Keep Your Cool" Services Keep Your Cool Pgrm Rpt.pdf 4. 2nd Quarter Budget Reports for Electric and Water Utilities 91- szoir- 191- 2nd Qtr Fin Rpt.pdf Elec 2nd Qtr.pdf Water 2nd Qtr.pdf H. 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." 4 004 Utility Board Meeting /f/3 Powier Provider �� .sorry •WOr •rn improvement • April 25, 2011 Chair Robert Gonzales AZUS Election of Officers AMC requires annual election of Chair, Vice Chair and Secretary (City Clerk) Not later than 2nd meeting after new Mayor Pro Tem. This is first meeting since new Mayor Pro Tern on March 21 . All Consent Agenda January 31, 2011 minutes Water Main Replacement Inspection Contract to SA Associates ($58,000) Sterling Technologies — Purchase Order Amendment ($32,000) Award of SCADA Contract to Survalent Technology, Inc. ($82,750) AZUSA Bill Payment Contract Extensions Al .S. „ ,` .4--....,,i Azusa Utility Board April 25, 2011 t:----1 4 . I Background Light & Water has a need to print/mail bills and for electronic presentment/payment services Three years ago, Light & Water conducted a rigorous review of vendors for these services As a result, contracts were awarded to InfoSend and Paymentus iM v Situation The contracts with Infosend and Paymentus have expired. Staff wishes to extend both arrangements for two years — Systems & Software contract for CIS upgrade provides no change for existing interface vendors — Infosend is very integrated in L&W business that it would be a large project to replace at this time with CIS upgrade ongoing AZUSA Considerations Azusa Municipal Code (2-523c) does not require competitive purchasing procedures for software purchases. Performance of Infosend and Paymentus has been excellent. Staff does not believe that increased efficiency or cost savings would result from rebidding Contract extension for 2 years is recommended at no change in price terms. f � t AZUSA Recommendation It is recommended that the Utility Board: — Approve extension of agreements with Infosend and Paymentus for 2 years (February 1 , 2013) — Amend Infosend P. O. to add $181K for this two year period. A7 Azusa Hydroelectric Plant and Conduit JJJJ �Trm JJJJ Azusa Utility Board April 25, 2011 INN AZUSA Background Presently, Pasadena owns the Azusa Hydro Plant and Conduit Pasadena has indicated that it would consider a sale of these facilities to Azusa Staff believes that it may be possible to develop a favorable business transaction The assistance of an impartial third party would be helpful to assess project condition and value, cost, benefits and liability of a possible acquisition AZ L: History Conduit and powerhouse (2 MW) built in late 1880's by SCE predecessor Powerplant replaced in late 1940's to convert from 50 hertz to 60 cycle power (3 MW). Pasadena purchased project from SCE in 1933 during construction of the Pine Dam and Reservoir (now called Morris dam). AZUSA .... _ ._...... _ Hydro Powerhouse , . .•:. , _ . . , . • . . • ..- ...e.::‘. N , ' . .' . , •.. • 3 . 1 — * , . .. • ilk P. .. . , . ,.., . '--,. '. • 1 ..4 . al . or..,..- 12 AZUSA Inside Powerhouse 1 . . , „:,• .. ,- -4„.,--„!-, . N IN • ,. ., aiii • * I C, EMI etie ..... • 1 a . . s... „...._, , .,„„ . • • , ,.,7' -•_•4'.. ' [434- 1 1 • ,ft• ,.. - g g* ) , ... , . .. IFt •r "Ilb )., .• -4.-„,.. : , . •"...~ ix ..i, ii . 4i .01006,.0,•7.,, -:_ 4 4,. 1 J .. . ..4, _ —• A 7 1, c 4, Penstock sw, 7Tir V • • ••• • _ • — •, e1 - •" • - • . „ • • - •-1• • • .4 • - -1*.f*.•,:, • • _ - - • 14 Azusa Conduit ) . .• .,,K•Sio"; • Alk , /44X. • ' . 1.1••••••••••••••••• MAE 1 15 Scope of Work • Document history,condition and commitments of Project - Forecast value of power from hydro plant • Project capital improvements&maintenance of Project Evaluate replacement of power plant with new unit • Review electric transmission aspects of Project • Document assets,agreements,deeds,permits,licenses and judgments affecting Project • Summarize economics of Project 16 Recommendation • Authorize Staff to solicit proposals for third party assistance to evaluate a possible acquisition of the Azusa Hydroelectric Plant and Conduit 17 �!l Refuse Rate Adjustments f' 11>>!• Azusa Utility Board March 28, 2011 AZUSA • Background Azusa has an Exclusive Franchise Agreement with Athens for refuse collection and recycling services Each year, rates for services are required to be adjusted effective July 1 Prop 218 requires that refuse rate changes be approved at a public hearing with 45 days advance notice AZUSA Adjustment Areas Consumer Price Index Puente Hills disposal rates Amount of waste collected 20 Actual Changes CPI increased by 1 .8% from Jan 2010 to Jan 2011 Landfill prices were stable at $38.26/ton until Jan 2011 when Athens qualified for discount Amount of waste collected — Single family down 3.45% — Multi-family down 10.7% — Commercial down 4.6% •. , Rate Changes 2011-12 Change Single Family (0.13%) Multi-Family (10.37%) Commercial 3.81% to 6.32% Note: Athens has reviewed and concurs. AZUSA Rate Detail Ju:yJune July-June 2010.2011 2011.2012 2011.2012 SERVICES Current Proposed Change Tots Monthly Total Month), Rate Rate 5 S Residential Barn'Service $22.61 522 58 -C 13.o (50.031 Muttihmi y S n 5':.Pf 517 91 .;C 3,co (52.071 Commercial Bins Size-3 Cubic Ye+ds Cray V.eiu. S"'66 5116 74 4 53"'. 55 06 2 Eo V'A-4 S'67.8? 517691 541's 59 08 Week 5224 C? 5237 17 5 67% 513 14 4 Cir y=.4Yeek 5252.C7 5297 27 6 14'. 517 2C Days-Week 5336.3E 5357 64 6 32`o 5221 25 Sae-2 Cubic Yards 1 Cloy Wet* $9e 71 8102.51 3.55% 53 8' 2 C►ny- eetc 514383 515047 4 62% SE 64 3 Cloys% i. S18&76 $19822 50tie 5546 4 Days.Aht+ei: 5234.68 5247 OC 5 25% 512 32 `• Dnys'Weift 52793E 5294 52' 5 43% 515 16 Sae•1.6 Cubic Yards 1 Day Wool; 57525. 578 12 3 81'0 52 87 2 Dnys.YdeNc $12662 5113195 4 21% 55 33 23 AZUSA 2011 Residential Rate Comparison El Monte 530.11 Claremont $29.63 San Dimas , 329.05 Diamond Bar 52602 Azusa-Cty Areas $16.5. West Covina 526.35 Glendora 326.31 Covina 323.14 ANNS&(Old Rate) 522.61 Azusa(New Rate) $22.58 Monterey Park " - 322.20 Arcadia 520.79 Duarte 519.57 Upland 313.12 Monrovia 316.79 0. OA, 51030 SAM mat 5255o Monthly Rate Mo. 24 AZ.USA 2011 Commercial Rate Comparison Monterey Park 5105-10 West Covina $100 46 Glendora $15442 San Dimas $133 59 Covina 3145.30 5.Pasadena 3130.52 �\ Duarte 5137.41 tt•���� La Wrote 5196.28 �y ® et-r' Diamond Bar , $12347 Azusa(New Rate) 5116.74 '`(yl'❑_ Claremont $114 10 Azusa(Old Rate) $111.60 S sow- 34100 560.0 56430 51[0.0 $123.01 512.70 523000 510000 $24500 Monthly Rate ivv 25 AZUSA, Recommendation It is recommended that the Utility Board set a public hearing for June 20, 2011 at 7:30 pm to consider the proposed Refuse Rate adjustments �ggg� 26 Water Supply and Drought Update Azusa Utility Board April 25,2011 [ =. ."' a+' .% .,4<ilkt 0%1.Y. VMV,* ____ Background Water Rule 21 provides for declaration of various drought phases On July 1 , 2008, the City Council declared a Phase II Water Shortage requiring mandatory conservation measures and a 3 day per limit on landscape watering Current water supply conditions have dramatically improved making it appropriate to reevaluate the Phase II water shortage declaration Water Shortage " Factors" Local rainfall levels State Water Project allocations San Gabriel and Morris dam levels Upper Canyon Basin groundwater level c Main SG Basin groundwater level A 7 ( ' L- A. Current Water Supply Conditions Rainfall has been above average the past two years — FY10 rainfall of 20 inches (110% of average) — FY11 rainfall of 24 inches (130% of average) Groundwater in the Main San Gabriel Basin is at 230 feet (37 feet higher than last year) — Watermaster's engineer recommending raising the Safe Yield from 170,000 AF to 210,000 AF State Water Project allocation raised from 50% to 80% Dams (Cogswell, San Gabriel, Morris) are 80% full Azusa's percolation ponds are full and overflowing yp tc r RAINFALL AT SAN GABRIEL DAY 7 .or _ _ _ - _ _ _ . �' _Tr T IT- C x"""- F :t;E's`•:-C -'RD'tF:i'ii Sar Y�:It e.E'Fbf EoEB=- C ^• .u�. ♦ .F rt.S. .a a �t+c.ii F: it YaFi Si:iitea9E kf eSE'_' RAIiATw 4LiweeY WN�u r T.- BALDWIN PARK KEY N81 WATER SURFACE ELEVATION >N� C l00 9E Q iL0 3YI iY 1MO Yii,i Q'. ..•... c.f.rew KK...,a Y], MAIN SAN GABRIEL BASIN WATERMASTER ® ti'I ETSON ENGINEERS SAN GABRIEL DAM RAINFALL AND E4R.^' PATER RESOURCE BKofKai BALDWIN PARK KEY WELL ELEVATION AZUSA 4;.-4,1,, r -�4c2 k 1 1 F N 5y�• Pr; • Other Considerations Governor Brown declared the 3 year drought over on March 30, 2011 The snowpack state-wide is 165% of normal a Recommendation The City Manager and Utility Director recommend the following: —Cancellation of the Phase II water shortage —Voluntary continuation of sound water use& efficiency practices by water users 2012 Local Resource Capacity Procurement 11111 Azusa Utility Board April 25,2011 Background In April 2006, the Utility Board adopted a Resource Adequacy Program for AL&W Program provides that City procure sufficient System Capacity for a 15% margin Per the CAISO, a portion of System Capacity must be from local "in basin" resources AZUSA Local Capacity Azusa's Local Capacity requirement for 2012 is 35 MW Current wind and hydro resources provide 4 MW Net requirement is 31 MW - tiv AZUSA • .., a V:afF4 RFP AL&W issued an RFP for capacity resources on April 12 Five (5) bidders responded 58 RFP Results System Capacity Local Capacity MW $/KW-MO Period MW $/KW-MO Period Sempra 20 1.85 Q3 - - - 20 2.00 1 Month - - Calpine 20 1,85 Q3 35 , 2.60 CY12 i 20 1.70 May-Oct - , - - Vernon - - - 25 2.75 CY12 Shell 20 2.80Q3 - - - NRG 20 6.8 Q3 10 2.00 CY12 - 10 2.50 CY12 - - - 15 2.75 CY12 39 AZUSA Recommendation • Staff recommends a combined 31 MW purchase of Local Capacity from NRG and Calpine($883,200) —20 MW from NRG at an average price of$2.25 per KW-month — 11 MW from Calpine at$2.60 per KW-month • Reject all System capacity offers as too high and continue to monitor the market 40 ,/l • [Emergency Repair Work 4 - k Azusa Utility Board April 25,2011 MP 41 A/C>„ Background On March 12, a 1980's vintage "direct buried" electric service line failed along Virginia Ann Drive A temporary overhead service was installed, but not ideal situation Permanent repair required installation of underground conduit 42 Action Emergency P.O. was issued to MJ Star Lite to install conduit AMC delegates authority to City Manager to approve up to $100K in emergency expenditures All repair work was completed on April 12. AZUSA -'.' 46‘...10-Afv.--4-• ' .r: .44: -..,i:::c!...„ '.� c !"...k.• ( 1:j 4 k4 1 :It.t"` ' r .:< ,� _ ,4 y 1 4 . IP,..........— ' . ' '1/4 ', :'' ', t4i,tAt • ,.* -it..k. , , . 1: { p, 1 $ .'. s t •i 1 t . t. ••• 9 ` ti _• % ,. ....: _. ... ` t.r,esti ;L .... .. ` 4. _ .. 3 +t r. 5• • . . i .,_ 1 1, - .:..4 Cable Rejuvenation Pilot Project . . .. . . „.,... .. . • , 4 i .' - 'it A ;,, t 4 •.3. , R a w_ Azusa Utility Board April 25, 2011 .".."., .. ; AZUSA Background On September 27, 2010, the Utility Board awarded a contract to Novinium for cable rejuvenation pilot project Goal was demonstrate viability and economics of cable rejuvenation versus conventional replacement Technology involves injecting low pressure fluid into cable strand to create a protective barrier Work began December 13, 2010 at 955 E. Arrow Highway and finished four days later. 46 Riser Cable Treatment f i t`, t ^'`• ,_ Ie e 311 �... #!"� 47 AZUSA UG Cables Inside Vault & Transformer 1' 41.„ ...0 l it ,1 ten. 48 AZUS A Cable Rejuvenation Tools & Equipment iNell • 49 AZUSA More Tools & Equipment 4 z lir ,, - , t4 .. ' 4:T ...z.v...., -t ,,--,, ... -----. 50 Cable Rejuvenation i, - /.• 1, - „to\ l A 4,. 'I\ i A 51 _. Cable Rejuvenation \ '•.its < , ....,,,, ii,,,,, , - -.„ r . ,,f, iiir'''''-- '1' k St - ,,. 1':, „.,..f.., • ' _ 1447 AZUSA Untreated Cable .% . ... . y ,.... ... ..., ., _ ,... ,t . . _.. i _ ,eer a i, 3 . . \ .4M 1 ,4 1 ereviv /'V V AZUSA r i rc: i u The Numbers Original bid contract cost of\o inium cable reins-enation S34.7".5' h0!ernai cost n: frrrpo ilai‘o:k equipment expense} S17.190.4- Total Cost S51.912.99 Total footage of 12 kV =2 Str.primary cable that was treated 3.485 feet Cost'ft of direct buried cable rejuvenation S14.88 Estimated cost of conventional cable reconstruction 5200.000" Cost ft of conventional cable reconstruction S57.34 Overall savings front utilizing cable rejuvenation at 542.46 ft or 955 East Arrow Highway 5148.087.01 tee. "Keep Your Cool" Program k k Azusa Utility Board .)14111 January 31, 2011 Background • Light&Water has a Small Business Audit& Retrofit Program • Primarily limited to lighting and building shell improvements • "Keep Your Cool" Program will allow expansion of services to small business qtirl 56 USA Keep Your Cool • A turnkey service being utilized in Northern California with success • Targets food and beverage industry -Convenience stores and small groceries • Refrigerator equipment tune-ups, refrigerator door seal replacements, and inside case lighting retrofits ll=�' 57 A/I�, Other Measures Electronically Commutated Motors (ECMs) Evaporative Fan Controllers Anti-Sweat Heat (ASH) Controllers LED Case Lighting Strip Curtains Auto Closing Devices •`3 Other Program administered through existing SCPPA joint action agreement $60K has been budgeted per year for program Expect saturation in 2.5 years (about 30 projects) FY11 Mid-Year Financial Report as. 111•11•1100110•11.• ;; Azusa Utility Board March 28, 2011 A7tic , Background Staff regularly reviews the financial status of the Water and Electric funds All numbers preliminary as City's accounting process is a continuum AZUSA Water The Water utility started FY11 with a $22M cash reserve ($25M goal). Sales dropped 5.2% from prior year and 25% from FY07 for 2nd quarter Debt service coverage of 1 .57 is good (1 .25 goal) Major pipeline replacement project ($1 .3M) planned for later in fiscal year. ._._, . Ii . . . _.. . .• .._. _,:.:, (onsumftiun and Restuve info ['nor IY Ind 2,,d,..„,. renrnl 1 riled Consuenrlion-CCF: 7,Ei33.732 4,2f-9.226 5:`0 Cash and]m-estuients:' 5 22,174.446 S 23,253.524 105'0 :.,.h,..1 Retrnurs &etas Billing Amounts $3'.'L''1363 t 9,,:1141.,.773 53's Otber Res tinier '.13.000 31079:5 tsft'a • Inserr<t kerzsne 50MI0(1 -es is ira Total Revenues S 1fi.5:36365 b 9539.C769 GO Water Expenses F7odu:fix: $3.Z03.4l S1,435,J55 45% f'S:rctased N'nter 312.435 $35,M4 _6`a 'r ansmission and Disinflation :.305 270 I IBB,t'C; 4'74 Customer Acrourain t and Saks'• 3.(1[:145 :,.:44,544 55'6 _.5,dmi istratirs and Engineering 963.]05 30.161: Al`k Franchise Fres. i9(t.tt3 19020Q 49'-i Subtotal Expenses $ 14,35-C(1 S r^2(k'L9SO Jar❑ Capital hpendil:aes.Debt Seni.e: Debt Service Payments} 5412520.170.$ ::60.(7(;; t CarStal Imrco«rnesa Budget' .,194.9(1B 4:453 0 Capital Projects Funded by Brod (^l5(* [23.5(764 100% Total Expenses[Less Bond Funding) S 21,O1F.4b: 5 6 V60 ill a Adjustments 7 rarniers Out' S(1 SO 0'0 Tolal Firendilure.and Trans(en Chrt S:1.048fi6' S 6,480,rdl 40`: Net Change in Cash'Negative) S <2,532.I0C1 s l,tl%9,L*'1; 5`� Debt Coverage Ratio' [I1 137 NV 63 AZUSA • L. Electric Beginning reserve balance of $11 .4M ($12.6M goal) and positive cash of $732K to date Debt coverage of 7.08 is good PCA revenue to date of $1 .2M Sales declined 5.2% from prior year through second quarter and 9.2% from two years ago non, hits, Y l iota ljlrl ndrd CoPmrn, Ptn.a And Prior lnd 1213E10 Consaaytion-kWh: 253.116,301 126.961,M1 49924 C ash Reserve Prior Frata]leas knd"' MASON $12.172.144 IMS /Mi4 pet f,AetmalMn Badllet Arw,l thni rearm of 1611 013170 6.04,9 Revenue Re..alRrltng A:ntt:ru `I313901 917.331:00 Resale Revert:«' r.394,025 11941.3 RI% r.1d?Lko11.veour R.ve;we 3iCt110 2NAI=. /were,:LW... 245.715 139160 5'. ElectricTwat Revenues 433.423.940 921 900443 Su`. Expenses IWrd ved Pewee' 5225 3o41^11 0/3333/40 i^9. Trareaysvo itispe:Jw:F 3.942015 1.9-+&3-'5 49'0 Cpxradora andMrrnerxae 3.30.793 1.417333 4.. Adadrdrua9•re and General' 2,159.815 1.2591+32 36% Frar.-Tite arta In-lieu-Tah 3,456260 1919113 33% Subtotal Intense,. 030.3:5.b20 11914`5 98 CgiW Earsndileses1 Debt Service 1.4rtg Tem Deft Service' 9915613 5474.306 50% Capital Antes and Prole&' 20.5^.:49 334253 16% Total Evrenditures 441556.3bl 5:6.635.531 50% Adjustment, Traraiers Cho 9.430 0 0% Twat Ivendmurs and T.anstert Oat $41303914 524935031 30'"• Change u,Cash%Reserve 133.1309:4) 4210 6% Debt Coverage Ratio° 134 7.09 099034.9 65 AZUSA 2nd Qtr Utility Sales Water Electric FY CCF Sales Billings FT kWh Sales Billings 04-05 5,191,531 58,321,053 04-05 133,339,089 514,655,236 05-06 5,236,280 S7,874,961 05-06 129,533,967 514,380345 06-07 5.67.,810 58..815.286 06-07 139,649.981 5 16,052,403 07-08 5,083,893 58,696.748 07-00* 136,375877 515,872,05£ 08-09 4,735,337 57,841.814 (788-09 139,176,034 518.2:6,924 09-10 4,503,313 58,513,021 09-10 133,286,521 5 16,22955.5 10-11 4,269,226 59,248.071 10-11 126,364,551 517,834,281 ti Mi 66 A7I'- Comments/Questions filb air ° iiiii 67 A Z. I_:H A - _-. - .. '',7r,:`,',..,.:.'" i '1 'n,',' ' . ',, ' , ' .. -,,,''', ." ', , . -' -' =• :''' ‘, . , -, ,, I . _ 1))1 : AZ U ISA. T•.IIT i v. Lff D ELECTION OF OFFICERS TO: HONORABLE CHAIRPERSON AND MEMBERS OF TH A SA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES f; DATE: APRIL 25, 2010 � s SUBJECT: ELECTION OF OFFICERS RECOMMENDATION It is recommended that the Utility Board elect by majority vote a Chairperson and Vice Chairperson to serve as officers of the Utility Board. BACKGROUND The Utility Board was formed in May 2001 pursuant to ordinance 01 -03 , which was later amended by ordinance 01 -07 (attached). The Utility Board is composed of City Council Members acting as Utility Board Members, with the Director of Utilities serving as executive advisor to the Board. The Utility Board meets monthly on the fourth Monday of each month in the downstairs conference room at Azusa Light & Water offices to conduct business related to the City's electric and water utilities. Section 2-415 of the Azusa Municipal Code requires the Utility Board to elect a Chairperson, Vice Chairperson, and a Secretary annually no later than the second meeting following appointment of the Mayor Pro Tem by the City Council. Since new Mayor Pro Tem was selected on March 21 , 2011 , the Utility Board must elect by majority vote a Chairperson and Vice Chairperson. The functions of Secretary are delegated to the City Clerk. FISCAL IMPACT There is no fiscal impact of electing officers. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities � .005 ORDINANCE NO.01-07 AN ORDINANCE OF THE CITY OF AZUSA, CALIFORNIA, AMENDING CHAPTER 2,ARTICLE V,DIVISION 5 OF THE MUNICIPAL CODE REGARDING THE COMPOSITION, OFFICERS,POWERS AND DUTIES OF THE UTILITY BOARD THE CITY COUNCIL OF THE CITY OF AZUSA,CALIFORNIA,DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 2,Article V,Division 5,Section 2-413 of the Azusa Municipal Code is hereby replaced,in its entirety,with the following: "Sec.2-413 Composition. The board shall consist of five members. The city council may choose by a majority vote of the council to appoint its five members as the ex officio members of the board. All members shall be appointed by a majority vote of the city council and shall serve pursuant to section 2-32. Members of the board may be removed pursuant to section 2-32" SECTION 2. Chapter 2,Article V,Division 5,Section 2-414,of the Azusa Municipal Code is hereby replaced,in its entirety,with the following: "Sec. 2-414 Powers and Duties. When the board members are acting in their capacity as both members of the board and members of the city council,the board, acting jointly with the city council,shall have the following powers and duties: 1. To establish electric power and water rates,capacity and connection charges,meter charges and such other fees and charges as may be appropriate and to generally regulate,control,manage,renew,repair and extend the water system and the electric power generation and distribution system of the City of Azusa. 2. To make rules and regulations governing the conduct of the board and its members and the employees of Azusa Light and Water. 3. To control and order the expenditure of all money received from the sale or use of water and electric power for defraying of expenses,maintenance,repairs, construction,extension and operation of the water and electric power system and for any expenses for additions to same. 4. To supply Azusa Light and Water's customers with water and electric power for any and all purposes and adopt all necessary rules and regulations for the provision of service. 5. To enter into contracts with any public or private agency for the exchange RVPUBVFF\618015 • ooh of water or electric power,provided that any such water or electric power so exchanged by the city shall be repaid in full to the city within a reasonable period. 6. To hold, lease, acquire and purchase property in the name of the city. 7. To dispose of property surplus to the needs of the water or electric power systems,provided that any sale, lease or disposal of its assets, including property used in the generation of electrical energy, other than those unnecessary to the operation of the water and electric power systems. 8. To engage such legal services as may be required or require the services of the city attorney." SECTION 3. Chapter 2,Article V,Division 5, Section 2-415 of the Azusa Municipal Code is hereby replaced, in its entirety,with the following: "Sec. 2-415 Chairperson,Vice Chairperson and Secretary The board shall elect one of its members as chairperson, one as vice chairperson, and one as secretary. Each of these three (3)board officers shall hold office for one (1) year and until their successors are appointed. Initially, officers shall be selected no later than the second meeting of the board following its appointment. Subsequent selection of officers shall occur no later than the second meeting following the selection of the mayor pro tern of the city council. The secretary may delegate to the city clerk duties such as making tape or other recordings of meetings of the board and developing draft Minutes of such meetings for consideration and possible approval by the board." SECTION 4. Chapter 2, Article V,Division 5, Section 2-418 of the Azusa Municipal Code is hereby replaced, in its entirety, with the following: "Sec. 2-418 Budget. While the board members are acting in their capacity as both members of the board and members of the city council,the board shall initially adopt a budget for Azusa Light and Water within four months of its first meeting, and thereafter shall annually adopt a budget for Azusa Light and Water, showing the expected expenses and revenues of the water and electric power enterprise. The city manager will present the budget to the board for adoption. The annual budget shall be incorporated into the budget of the city." SECTION 5. Chapter 2, Article V, Division 5, Section 2-419 of the Azusa Municipal Code is hereby replaced, in its entirety,with the following: "Sec. 2-419 Loans. While the board members are acting in their capacity as both members of the board and members of the city council, the board may approve and authorize loans to or from the funds subject to its control from or to RVPUBUFF\61 80 15 407 city funds on a temporary basis." SECTION 6. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason deemed or held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this ordinance. The city council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or other portions might subsequently be declared invalid or unconstitutional. SECTION 7. This ordinance shall be in full force and effect thirty (30) days after its passage. SECTION 8. A summary of this ordinance shall be published in the manner required by law. PASSED, APPROVED AND ADOPTED.. day of October, 2001 . ,P4e Cristina Cruz-Madrid Mayor ATTEST: dev - Vera Mendoza, City Clerk RVPUBVFF1618015 11 13 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that the foregoing Ordinance No. 01-07 was duly introduced and placed upon its first reading at a regular meeting of the City Council on the 17 day of September2001, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the i day of October , 2001, by the following vote, to wit: AYES: COUNCILMEMBERS: HARDISON,STANFORD,ROCHA,CHAGNON,MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE __ ,t/ A7'10, Vera Mendoza, City Clerk APPROVED AS TO FORM: 4 07/1/,Q. 0.1k1/1-1.Lr- Ci y Attorney RVPUBVFF\618015 nn1,9 EXCERPTS FROM ORDINANCE 01-03 Sec.2-416 Meetings. The board shall establish a regular time and place of meeting and shall meet regularly at least once a month or more frequently as workload requires. The regular place of meeting shall be in the Azusa Light and Water building. At least once every three(3) months,or more frequently if the board desires,the board may meet in other places and locations throughout the city for the purpose of encouraging interest and facilitating attendance by people in the various neighborhoods in the city at the meetings. Special meetings may be called by the chairperson or by three(3)members of the board,upon personal notice being given to all members or written notice being mailed to each member and received at least 36 hours prior to such meeting,unless such notice is waived in writing. All board meetings,and agendas for such meetings,shall be publicized in advance by written notice given to newspapers serving the city at least three(3)days prior to regular meetings and at the same time as members are notified of special meetings. In addition,notice of meetings. shall be posted regularly at locations normally utilized by the city for such purposes. All meetings shall be open to the public pursuant to the provisions of the Ralph M. Brown Act. (Gov.Code§54950 et seq.) The board shall cause to be kept a proper record of its proceedings. The records and files of the board and its officers shall include,but not be limited to, all official correspondence,or copies thereof,to and from the board and its members received in their official capacities and shall be kept open for inspection by the public at reasonable times in the office of the city clerk. Sec.2-417 Technological Support.The members o f the b o ard may receive technological support in the form of hardware,software or reimbursement for telecommunications services used in connection with serving on the board. Members shall also be reimbursed for any reasonable and necessary expenses incurred by them in the performance of their duties as members of the board. • 010 t,� 6 ' e sa: A.ZUSA 11GMT & 'WATER CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JANUARY 31, 2011 — 6:31 P.M. The Utility Board/City Council of the City of Azusa met in regular session, at the above date and time, at the Azusa Light and Water Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairman Gonzales called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: Also Present City Attorney Ferre, City Manager Delach, Assistant City Manager Makshanoff, Director of Utilities Morrow, Assistant to the Director of Utilities Kalscheuer, Assistant Director of Resource Management Lehr, Assistant Director of Electric Operations Langit, Administrative Services Director— Chief Financial Officer Kreimeier, Captain Momot, City Clerk Mendoza, Deputy City Clerk Toscano. PUBLIC PARTICIPATION Pub Part None. None UTILITIES DIRECTOR COMMENTS Dir Comments Director of Utilities Morrow provided an update on CMUA Capitol Day stating that there was talk about the Dir of Utilities State Budget, SB 23 to increase renewable energy portfolio to 33% by 2020, and the Water Bond ballot Comments measure. He also provided an update on the court decision Tesoro vs. Los Angeles Department of Water and Power. City Attorney Ferre also talked about the court decision and outcome. UTILITY BOARD MEMBER COMMENTS Brd Mbr Cmts None. None. The CONSENT CALENDAR consisting of Items D-1 through D-4, were approved by motion of Board Consent Cal Member Hanks, seconded by Board Member Carrillo and unanimously carried. Appvd 1 . The minutes of the regular meeting of November 22, 2010, were approved as written. (Hanks abstn) Minutes Q l 2. Approval was given for the selection of MJ Star-Lite Inc. to furnish and install underground electric MJ Star-Lite conduits across Gladstone Street near intersection at Duggan Avenue in an amount not-to-exceed Electric $37,048. Conduits 3. Approval was given for the advertisement and solicitation of bids for Project W-266A, Water Main Water Main Replacement in Hilltop Avenue in Azusa and in San Bernardino road and Workman Avenue in West Hilltop Project Covina. W-266A 4. Approval was given to approve scope of work of request for proposals(RFP)to prepare the Hsu-Canyon RFP Engr Rpt Filtration Plant Engineering Report for the California Department of Public Health;and to authorize staff Hsu-Canyon to solicit proposals from qualified consultants to prepare said Report. Filtration Plnt SCHEDULED ITEMS Sched Items California Resource Connections, Incorporated(CRC)Funding Request. CRC Fund Rqst Assistant to the Director of Utilities Kalscheuer addressed the item providing a background of California C. Kalscheuer Resource Connections(CRC)and its involvement with City in environmental programs i.e. River Walk and Comments Litter Clean-up and Smart Gardening & Backyard Composting Workshop. He detailed the proposal for a Public Educational Venue. Ms. Suzanne Avila of California Resource Connections and Mr.Rick Thomas,Landscape Architect,addressed S. Avila the issue detailing the request for a Memorandum of Understanding and funds to provide and Educational &R. Thomas Community Garden and Compost Demonstration Site at Memorial Park. They responded to questions posed CRC by the Board Members. Board Member Carrillo asked that further discussion be held regarding a time frame for rental of the plots. Moved by Board Member Carrillo, seconded by Board Member Hanks and unanimously carried to approve MOU w/CRC Memorandum of Understanding (MOU) with CRC to provide CRC with $39,822 in funding for an Approved Educational Community Garden and Compost Demonstration Site at Memorial Park,the Director of Utilities Educational was authorized to execute MOU;and a budget amendment for same amount from Fund 39 to fund the project, Com Garden & was approved. Compost Demo Commercial Recycling Program Contract Award. Com Recycle Assistant to the Director of Utilities Kalscheuer presented the proposal for Commercial Recycling detailing the C. Kalscheuer background and process utilized and recommendations.He responded to questions posed by Board Members. Comments Moved by Board Member Hanks, seconded by Board Member Macias and unanimously carried to approve Corn Recycle selection of proposal by E. Tseng and Associates in amount not-to-exceed $128,450 to provide technical Program services for the implementation of a commercial recycling program in the City of Azusa and to approve E. Tseng& budget amendment in same amount from Fund 39 to fund contract award. Associates Power Supply/Rate Impact Assessment Tool. Pwr Supply Assistant Director of Resource Management Lehr presented background information stating that a number of Y. Lehr legislative and regulatory actions pertaining to renewable energy and climate change impact Azusa, CARB Comments Renewable electricity Standard(RES)and AB 32(Global Warming Solutions Act),he detailed their definition and impacts to City. He also detailed the purpose of the Assessment Tool to monitor progress in Energy progress. Moved by Board Member Hanks,seconded by Board Member Carrillo and unanimously carried to approve the Proposals scope of work for a Power Supply/Rate Impact Assessment Tool and staff was authorized to solicit proposals. Power Supply Rate Impact Assessment 01/31/11 PAGE TWO Tool 012 February 28, 2011 Utility Board Meeting. UB Mtg 2/28/11 Director of Utilities Morrow addressed the item stating that he and Board Member Hanks will be attending the G. Morrow Annual APPA Legislative Rally during the time of the next Utility Board Meeting and since there is nothing Comments significant scheduled for that meeting he requested that it be canceled. Moved by Board Member Carrillo,seconded by Board Member Gonzales and unanimously carried to cancel UB Mtg 2/28 the Utility Board Meeting of February 28, 2011, with the understanding that any item that needs immediate Canceled action could be placed on the agenda for a Council Meeting in February. STAFF REPORTS/COMMUNICATIONS Staff Rpts Director of Electric Operations Langit provided an update on the Revised Service Agreement for Wholesale Revised Svs Distribution Service between Southern California Edison and Azusa Light and Water. He detailed the item Agmt Edison stating that the payment methodology has been improved by negotiating a lower fixed charge rate if Azusa were to elect to finance the substation cost improvements rather than Edison. SCE is proceeding with an updated FERC filing which allows Azusa to pay capital costs of CAISO substation metering in return for lower monthly charges into perpetuity. Moved by Board Member Carrillo, seconded by Board Member Hanks and unanimously carried to adjourn. Adjourn TIME OF ADJOURNMENT: 7:36 P.M. SECRETARY NEXT RESOLUTION NO. 11-05. 01/31/11 PAGE THREE • 013° *.J4 . AL USA CMI i 5h'4111 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 SUBJECT: APPROVAL OF A PROFESSIONAL SERVICES CONTRACT WITH SA ASSOCIATES TO PERFORM INSPECTION SERVICES ON PROJECT W- 266A WATER MAIN REPLACEMENT IN AZUSA, WEST COVINA RECOMMENDATION It is recommended that the Utility Board approve a Professional Services Contract in the amount of$58,000 to SA Associates to provide inspection services on Project W-266A. BACKGROUND A construction contract for Project W-266A, Water Main Replacement in Hilltop Avenue in Azusa, and San Bernardino Road and Workman Avenue in West Covina has been awarded and the project will require inspection during construction. On April 4, 2011, the Azusa City Council approved issuance of a Request for Proposals for inspection contract. Five (5) qualified and experienced inspection services consultants were requested to submit proposals for this project and three(3) consultants responded: SA Associates $58,000.00 Civiltec Engineering $66,800.00 Willdan Engineering $86,240.00 SA Associates, who is low bidder, has inspected past projects for the Water Division and has performed well. 014 Pipeline Replacement Inspection Services April 25, 2011 Page 2 FISCAL IMPACT The fiscal impact of this item is $58,000. A budget item for this project has been approved by the Utility Board in FY 2010-2011 Capital Budget Account 32-80-000-721-7145/72111A-7145. Prepared by: Chet Anderson, Asst Dir- Water Operations 015 ;ft: ara AZUSA . cbi a k4rt! CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 9 SUBJECT: APPROVAL OF AN AMENDMENT TO BLANKET PURCHASE ORDER NO. 111798 TICY STERLING TECHNOLOGIES, LLC FOR PURCHASE OF ADDITIONAL WATER TREATMENT CHEMICALS RECOMMENDATION It is recommended that the Utility Board approve an amendment to Blanket Purchase Order No. 1111798 for an additional amount of$32,000. BACKGROUND Azusa Light & Water operates the Joseph F. Hsu Water Filtration Plant to produce potable water from surface water diverted from the San Gabriel River. The water from the River contains varying amounts of fine materials including silt and clay (turbidity). The amount of turbidity in River water varies with rainfall and storm water runoff to the River. This year, due to the wet winter and heavy rains, River surface water contained higher than usual levels of turbidity which created a higher demand for the chemicals used to settle the particles out of the water prior to filtration (pretreatment). With the increase in particles removed from the treated water, a greater volume of sludge was produced, and additional chemicals are necessary to treat the sludge. Sterling Technologies, LLC has a previously approved purchase order to provide chemicals to the Water Filtration Plant. The current amount of their Blanket Purchase Order is $79,500. By the proposed amendment, it will be increased to $111,500. FISCAL IMPACT The fiscal impact of this item is $32,000 which is to be transferred to the Sterling Technologies, LLC Blanket Purchase Order from available funds in Operating Budget Account No. 32-40-722- 744-6863 (water treatment plant supplies) Prepared by: Chet Anderson, Assistant Director- Water Operations 016 E fet A7U'� A r.nr t �arra CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 SUBJECT: AWARD OF A CONTRACT TO SURVALENT TECHNOLOGY INC. FOR FURNISHING & INSTALLING A SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) FOR MONITORING THE ELECTRIC SUBSTATIONS. RECOMMENDATION It is recommended that the Utility Board award a contract to Survalent Technology in the amount not to exceed $82,750 for a substation SCADA system. BACKGROUND Supervisory Control and Data Acquisition/Monitoring Equipment, commonly referred to as "SCADA", is a combined system of computers, software, communications equipment and intelligent electronic control devices which are used by utility personnel to monitor and operate key equipment within the electric system. Most electric utilities who have owned and operated a SCADA system consider it essential for efficient and safe electric network operations. Through SCADA, electric personnel are able to remotely monitor the system and thus gain a rapid situational awareness on the condition of the electric distribution lines. SCADA systems have gained widespread use amongst electric utilities nationwide. It is a starting point in implementing future smarter grid programs. Under its 10 year Electric System Master Plan, Azusa Light & Water identified the need and justification for a SCADA system. Recognizing that a SCADA system is an essential business tool in the operation of a municipal electric utility, the Azusa Utility Board recently authorized 017 SCADA Acquisition April 25, 2011 Page 2 staff to solicit proposals from companies or vendors who are experienced in the installation and commissioning of SCADA systems. Staff issued the SCADA request for proposals (RFP) and received proposals from four (4) companies. Sealed proposals were opened on March 16, 2011 at the office of the City Clerk and the results are shown in the table below: COMPANY PROPOSAL AMOUNT SURVALENT TECHNOLOGY $82,750 AVISTA REALTIME SYSTEMS (GEiPower) $85,115 GE DIGITAL ENERGY $183,480 SEL INCORPORATED $187,775 Staff reviewed the contents of the proposals submitted by vendors and invited each company to make a presentation of their proposed SCADA system. As part of the evaluation process, staff also conducted an informal reference check on the companies' previous projects for other small municipal electric utilities. Survalent's SCADA system product offering consist of a Windows SCADA Master System that communicates to remote terminal units (RTU's) or "Scout Controllers" which combine the functions of a traditional data concentrator and terminal server. Included is the base SCADA software consisting of a graphical user interface and database editing software. The entire system fully furnished and installed comes with vendor provided system training, testing and final commissioning plus the customary one year warranty and support. A simplified diagram of the SCADA system as proposed by Survalent is shown on next page for illustration purposes. 018 SCADA Acquisition April 25, 2011 Page 3 14.171. s,Aw Moi •[lrvr+♦ IAN � ... ��� _ Or rr.arnro 31.44a1,M+••A 48/1/0 Mo.[rs♦tw fsa.ai*WO [1 s. 0N[by Jnr. 1 PWI Oar w,00.r ,..Ma✓- 11.141,0011 Iluftmorm i..8MMd sY i,.uab. ♦ . vary Ort Coned. Corporal N � �Y r-111,"^ tis.�...�✓,'+,._.� W urn.. - 41111111111 car Gw.ws-fcma �► iuDw er irnnasn♦ { Cmperrtlan 16.1.~ Survalent's competitive costs, product offering, experience and qualifications is well known in the electric utility industry including their strategic partnership with Hometown Connections, a utility services subsidiary of the American Public Power Association. In view of the above, and after a careful consideration of the other proposals that were submitted, staff is recommending for approval by the Azusa Utility Board the proposal of Survalent Technology which already includes a 10% contingency allowance. FISCAL IMPACT This SCADA project is budgeted this fiscal year as a Capital Improvement Project and budgeted funds are available. Survalent's cost proposal excludes the applicable CA use/sales tax and so the final Purchase Order Contract will include a line item for sales tax in the amount not to exceed $1,463, to cover the 9.75% tax on material deliverables to Azusa Light & Water. Prepared by: F. Langit Jr. —Assistant Director of Electric Operations 019 Paw tAZIGSIT d SA UA'ATFR SCHEDULED ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF E AZUSA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 SUBJECT: APPROVAL TO EXTEND INFOSEND CONTRACT FOR BILL PRINT/MAIL, AND ELECTRONIC BILL PRESENTMENT/PAYMENT, AND PAYMENTUS CONTRACT FOR PROCESSING PAY-BY-PHONE AND WEB PAYMENTS RECOMMENDATION It is recommended that the Azusa Utility Board: (1) Extend contract purchase orders for two years until February 1, 2013 for Infosend bill print/mail and electronic bill presentment/payment services, and for Paymentus to process pay-by-phone and web payments; and (2) Amend the contract purchase order for Infosend to add $181,000 to cover this period. (There is no additional cost for Paymentus since customers who use this service pay a small fee.) BACKGROUND Three years ago Customer Service conducted a rigorous review of competing vendors for these services and selected the most customer-focused, experienced and competitively priced vendors. To change vendors this year would be a hardship for two reasons: (1) We are under contract with Systems & Software for our enQuesta Customer Information System upgrade and according to the contract they will only upgrade with current interfaces/vendors, which Infosend and Paymentus are; and (2) Infosend is so intricately 020 April 25, 2010 Customer Service Contract Extensions Page 2 entwined in our business, including online billing and payment with web pages they wrote and designed, that it would be difficult and take an extreme amount of work at this time to take on the huge project of exchanging them for another vendor, and through the rest of the year, we are focusing all our efforts and staff time to make our enQuesta upgrade a success. Moreover, Azusa Municipal Code 2-523(c) does not require staff to follow competitive purchasing procedures when purchasing software. The performance of Infosend and Paymentus under these contracts has been excellent. Staff does not believe that efficiency and/or cost savings would result from rebidding these arrangements and is recommending that the current contracts be exercised to continue services for two additional years. FISCAL IMPACT Infosend's monthly charges vary slightly based on the number of bills and payments processed. Total cost is not-to-exceed $181,000, excluding postage, for the additional two years ending February 1, 2013. Funds needed for this fiscal year are budgeted for in Account 31-40-711-903-6493. Prepared by: Karen Vanca, Assistant Director-Customer Care & Solutions 02t AZUSA r.uT 4 . rrp SCHEDULED ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE USA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 SUBJECT: AUTHORIZE STAFF TO SOLICIT REQUESTS FOR PROPOSALS TO EVALUATE THE AZUSA HYDROELECTRIC PLANT AND CONDUIT RECOMMENDATION It is recommended that the Utility Board authorize staff to solicit proposals from qualified consultants to evaluate the condition of the Azusa Hydroelectric Plant and Conduit from an acquisition feasibility standpoint. BACKGROUND Presently, the City of Pasadena owns the Azusa Hydroelectric Plant and associated conduit. Pasadena has indicated they would consider "selling" these facilities to the City of Azusa. Staff has begun evaluating such a transaction and has expressed preliminary interest in acquiring the project under appropriate business terms to be determined. Staff believes that it would be helpful to have the assistance of a third party to evaluate the condition of the project and to assess the value, benefits, liabilities and costs of a possible acquisition. The history of this project is interesting. The conduit and powerhouse were built in the late 1890's by the San Gabriel Electric Company (successor to the San Gabriel Power Company, Pacific Power & Light and eventually Southern California Edison Company in 1917) to provide hydroelectric energy as a possible power source for an ice-making plant in Azusa. The initial capacity of the plant was 2,000 KW and by June 30, 1898, power was being transmitted to Los Angeles where much of it was used by electric railway lines in and around Los Angeles. The original power plant was the second two-phase plant in the United States, the first being at Niagara Falls. In the late 1940's a new power plant was constructed south of the old facility to replace the first plant. This was necessitated because Edison was converting from 50 cycle power - to 60 cycle power. 022 RFP for Azusa Hydroelectric Project April 25, 2011 Page 2 In 1912, the City of Pasadena formed its Water Department when it sold bonds to buy some small independent water companies. Pasadena realized that it needed more water as the city continued to develop and grow. It was determined that the San Gabriel Canyon would be a viable source,but a dam and a pipe line to Pasadena would need to be built. Pasadena purchased various properties and water rights in the canyon so a dam could be built. However, the reservoir formed by the dam could potentially encroach on the Azusa Conduit, which was owned by Southern California Edison Company. Edison told Pasadena that if they wanted to build the dam, they would have to purchase the conduit and powerhouse from them. On January 18, 1930, the City signed an option with Edison the purchase these properties. On June 18, 1929, the voters of Pasadena approved the sale of bonds in the amount of $10,000,000 for the "San Gabriel Project". The ground breaking ceremony for Pine Canyon Dam was held on April 26, 1932 and the dam was scheduled for completion by January 1934. Pasadena sold Pine Canyon Dam and Reservoir to MWD on November 23, 1932, and the City of Pasadena officially purchased the Azusa Hydroelectric Project and Conduit from Southern California Edison on June 20, 1933. On May 26, 1934, Pine Dam and Reservoir's name was changed to Morris Dam and Reservoir. Consideration of a possible acquisition by the City of Azusa of the Azusa Hydroelectric Plant and Conduit is a relatively complex undertaking that would need to take into consideration many factors including: the condition of the facilities; the involved permits, licenses and contracts; the impact on third parties such as other Committee of Nine members; and the value of the electricity expected to be produced by the hydroelectric plant. Attached is a proposed RFP scope of work. FISCAL IMPACT The fiscal impact of this proposed Engineering Report will be reported in a Staff Agenda Report to the Utility Board following receipt of proposals in response to the RFP. Prepared by: George F. Morrow—Director of Utilities 023 AZUSA *HT b x'41E1. SCHEDULED ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZ SA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 SUBJECT: AUTHORIZATION TO NOTIFY PROPERTY OWNERS OF PUBLIC HEARING CONCERNING REFUSE RATE ADJUSTMENT ON JUNE 20, 2011 RECOMMENDATION It is recommended that the Utility Board authorize staff to print and mail a 45-day advanced notice of public hearing to be held June 20, 2011 to consider the annual refuse rate adjustment and "true up". BACKGROUND The City has an Exclusive Franchise Agreement with Athens Services for refuse collection and recycling services. Each year rates for such services need to be adjusted effective July 1 pursuant to contract terms and conditions. Our City Attorney has advised that Proposition 218 requires that all refuse rate adjustments be approved at a public hearing with a notice to the public 45 days in advance of the hearing. Rate adjustments are made based on changes in: (1) the Consumer Price Index (CPI); (2) per ton rates at the Puente Hills landfill; and (3) amount of tonnage collected from Azusa residents and businesses. Rates also include billing charges for residential customers, AB 939 Fees, franchise fees, and loss factors due to customer non-payment since the contract requires the City to pay Athens all amounts billed by the Utilities Department. In general, the CPI from January 2010 to January 2011 increased by 1.8%. However, landfill rates at Puente Hills remained stable during this last year at $38.26 per ton, and in January 2011 thru April 2011, Athens was able to deliver enough waste to Puente Hills to qualify for volume discounts, effectively lowering actual costs which are passed on to customers. The lower landfill 024 2011 Refuse Rate Adjustment April 25, 2011 Page 2 rates for four months combined with 3.45% fewer tons from single family customers this last year resulted in a reduction of $0.03 per month for single family barrel customers. Multifamily tonnage declined by 10.7% compared to the prior year. This results in a 10.37% ($2.07) monthly reduction in per household rates for multifamily bin customers. Commercial bin tonnage was relatively unchanged from prior year, however, businesses reduced service levels this last year, from 273,086 cubic yards in FY 2009-10 to 260,669 cubic yards in FY2010-11. Since the same amount of waste and disposal cost thereof is allocated to 4.6% few cubic yards, this results in an increase per cubic yard in waste disposal costs. As a result, commercial rates will increase from 3.8% to 6.3% depending on service level. (See attached draft public notice which includes proposed rate changes.) Staff conducted a survey of rates in surrounding cities and finds that Azusa's proposed rate changes will remain competitive with services provided in neighboring cities. (See attached survey results.) Athens Services has reviewed the draft calculations and proposed rate changes and has concurred with rate calculations. Once rates are approved following the public hearing, a contract amendment will be executed by the City and Athens effectively implementing the new rates. More detail will be provided at the public hearing about the proposed rate changes. FISCAL IMPACT The cost of printing and mailing the public notice is about $3,280 and such cost will be funded from AB 939 fund. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Liza Cawte, Sr. Administrative Technician Attachments Draft Public Notice Refuse Rate Survey Charts 025 lkir- a NOTICE OF PUBLIC HEARING W ^_ ','44,-_- REFUSE RATE ADJUSTMENT Mi "`` JUNE 20,2011 AZUSA AZUSA ucmi a wnEn NOTICE IS HEREBY GIVEN that pursuant to Article XIIID of the California Constitution,the City Council of the City of Azusa will hold a PUBLIC HEARING to consider an increase in rates for trash collection and recycling services effective for bills rendered on or after July 1, 2011. This notice is being mailed to the owner of record of each identified parcel subject to the trash rate adjustment. Said PUBLIC HEARING will be held at the regular meeting of the City Council of the City of Azusa on MONDAY,JUNE 20,2011,at 7:30 P.M.,or as soon as possible thereafter,in the Civic Auditorium,213 E.Foothill Blvd.,Azusa. The City Council will be considering adoption of a trash collection and recycling rate schedule effective from July 1,2011 through June 30, 2012, as set forth below for typical residential and commercial services. Read below for more information. July-June July-June 2010-2011 2011-2012 2011.2012 SERVICES Current Proposed Change Total Monthly Total Monthly Rate Rate % $ Residential Barrel Service $22.61 $22.58 -0.13% ($0.03) Multifamily Bin $19.98 $17.91 -10.37% ($2.07) Commercial Bins Size•3 Cubic Yards 1 Day/Week $111.68 $116.74 4.53% $5.06 2 Days/Week $167.83 $176.91 5.41% $9.08 3 Days/Week $224.03 $237.17 5.87% $13.14 4 Days/Week $280.07 $297.27 6.14% $17.20 5 Days/Week $336.39 $357.64 6.32% $21.25 Size-2 Cubic Yards 1 Day/Week $98.71 $102.51 3.85% $3.81 2 Days/Week $143.83 $150.47 4.62% $6.64 3 DaysNVeek $188.76 $198.22 5.01% $9.46 4 Days/Week $234.68 $247.00 5.25% $12.32 5 Days/Week $279.36 $294.52 5.43% $15.16 Size•1.5 Cubic Yards 1 Day/Week $75.25 $78.12 3.81% $2.87 2 DaysNVeek $126.62 $131.95 4.21% $5.33 Further details regarding the bases and reasons for the proposed trash rate changes are set forth in a report available at the City Clerk's office at 213 E.Foothill Boulevard in Azusa which may be reviewed by any interested person. Proceeds from this rate adjustment will be used to pay Athens Services for trash collection and recycling services. Recycling services include processing all waste collected in Azusa through a material recovery facility where all glass,plastics,metal and paper products are removed and recycled. Other portions of the trash rate include City fees,such as 10%franchise fee,AB 939 or Recycling fee,billing fee,and fee to make up for non-payments. These fees are used by the City to administer the trash hauling contract,comply with the California Integrated Waste Management Act of 1989, and cover customer service and billing costs. At the time of the public hearing,the City Council will hear and consider all protests and objections concerning the proposed trash rate adjustments. Upon conclusion of the hearing,the City Council will consider,and may adopt,the proposed trash rate adjustments. If written protests against the proposed rate adjustments and fee schedule are not presented by a majority of owners of the identified parcels upon which the rates and fee schedule are proposed to be imposed,the City Council will be authorized to impose the rates and fee schedule. Comments or protests to the proposed trash rate adjustments must be delivered in writing to the City Clerk,City of Azusa,213 East Foothill Boulevard,Azusa,CA 91702,prior to the public hearing on June 20,2011. Written protests may also be submitted at the public hearing so long as they are received prior to the conclusion of the public hearing. Please include your service address(es)or parcel number(s),your name and contact telephone number in your written protest. If you have any questions about this notice or proposed changes to trash rates,please call Customer Service at(626)812-5225. Copies of the proposed report and resolution for adoption of the trash rate changes are available by calling the above-mentioned telephone nur(U�0�ltg� at htto://www.ci.azusa.ce.us/index.asox?nid=137. Thank you. • bb 2011 Commercial Rates Survey (3 CY/1x per Week) , • I i i j ; Monterey Park $18510 West Covina $161.46 Glendora $154.42 I San Dimas $153.59 Covina $145.38 V S. Pasadena $138.52 I Duarte $137.41 11111.1111.111.1111111 La Verne $136.28 I Diamond Bar $12347 I Azusa (New Rate) , $116.74 Claremont 114.10 , 1 I j Azusa (Old Rate) 1 $ 11.68 ! I__ 5- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 $200.00 t Monthly Rate c N i 2011 Single Family Residential Rates Survey El Monte $30.11 Claremont $29.63 San Dimas $29.05 Diamond Bar $28o2 zusa-Cty Areas $26.38 g1.+ V West Covina $26.35 Glendora $26.31 I � Covina $25.14 Azusa (Old Rate) $22.61 Azusa (New Rate) I $22.58 Monterey Park 111111111111111111111111111111111111110111 $22.20 Arcadia $20.73 I ` Duarte $19.57 Upland ► $18.82• Monrovia $18.79 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 Monthly Rate 0.0 Piii""4, T AL LISA -CHI 6 WAIFr. SCHEDULED ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE USA UTILITY BOARD . FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 SUBJECT: UPDATE ON WATER SUPPLY SITUATION AND RATIFICATION OF CANCELLATION OF PHASE II WATER SHORTAGE DECLARATION RECOMMENDATION It is recommended that the Azusa Utility Board ratify the City Manager's and Director of Utilities' recommendation to cancel the Phase II Water Shortage declaration effective May 1, 2011 due to an improved water supply situation, while strongly encouraging continuation of water conservation measures by consumers. BACKGROUND The Azusa City Council amended Water Utility Rule No. 21 titled "Water Conservation" on June 18, 2008 and declared a Phase II Water Shortage effective July 1, 2008. A Phase II Water Shortage requires water users to implement a variety of mandatory water conservation measures and limit landscape/turf watering to 3 days a week during certain hours. Current water supply conditions affecting Azusa Light & Water have dramatically improved since December 2010. As a result, the Director of Utilities has determined that the basis for declaring a Phase II Water Shortage no longer exists. Factors considered in making this assessment include local rainfall levels, State Water Project allocations, runoff into the San Gabriel and Morris Dams, and ground water levels in the main and upper San Gabriel Valley basins. Specifically, the following key factors related to water supply are noted: • The local area has seen above average rainfall the past two years with FY2009-10 seeing about 20 inches of rainfall on the Valley floor (110% of average) and FY2010-11 to date seeing about 24 inches of rainfall (130 percent of average). • The groundwater level in the Main San Gabriel Basin (measured at Baldwin Park Key 029 Water Supply/Drought Update April 25, 2011 Page 2 Well) has risen to about 230 feet— an increase of 37 feet from a year ago. The water table is still rising about one foot a week and is expected to peak at 240 feet. • The Watermaster's consulting engineer has recommended changing the Operating Safe Yield of the Basin from 170,000 AF to 210,000 AF for FY2011-12. • The State Water Project's allocation to contractors has been raised from the 2010 level of 50% to a level of 75% with a possibility of increasing to the 80 to 85% level after Sierra snowfall is measured. • The water connection (USG-3) near Morris Dam that delivers water from the State Water Project and the Colorado River will have available water for the first time in two years. • Reservoir storage at the Cogswell, San Gabriel and Morris Dams is at 80% of full capacity (67,000 AF) and might be higher if not for releases being made for flood control. (Those releases are being diverted to spreading grounds at I-210 and I-605.) • Azusa's two storage/percolation ponds are full as is the Canyon Basin which is the direct source of AL&W's pumped groundwater. In addition, California Governor Brown declared the 3 year drought to be over on March 30, 2011 in light of the significant snowpack levels that provide a third of the State's water. Recent snowpack measurements put the water content in the statewide snowpack at about 165% of normal. All of the State's major reservoirs are filled to over 100%of historical average levels. At the same time that Azusa Light & Water cancels the water shortage declaration, the utility will recommend that local water users continue to voluntarily follow sound water use/efficiency practices. Historical precipitation levels in California (especially Southern California) are extremely variable and history shows that it may be only a year or two before water supplies become seriously scarce again. This will be communicated to customers through normal Light & Water channels. (No direct mailing is planned at this time.) As noted above, the Director of Utilities has determined that the basis for declaring a Phase II Water Shortage no longer exists. Water Utility Rule 21 provides that prior to making a water shortage declaration, the Director of Utilities shall communicate this information to the City Manager and City Council. FISCAL IMPACT It is difficult to project the fiscal impact of terminating the drought declaration. Water consumption levels have declined nearly 25% over the past several years due to successful efforts by local water customers to conserve. Should customers increase future water purchases, it may be possible for the water utility to rebuild its reserve levels, increase its water infrastructure expenditures and reevaluate basic water rate levels. Prepared by: George F. Morrow—Director of Utilities 030 PIPOISb , Vr FItt-t : F- 1,;,,,,, .;,11:11 :”1 * ,-7.- ' -, r* ;,- SCHEDULED EIGHT & WAtER SCHEDULED ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF:4, USA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILIT IT DATE: APRIL 25, 2011 SUBJECT: APPROVAL OF AGREEMENTS WITH NRG AND CALPINE TO PURCHASE LOCAL RESOURCE ADEQUACY CAPACITY FOR 2012 RECOMMENDATION It is recommended that the Utility Board approve two Local Resource Adequacy Capacity purchases totaling 31 Megawatts (MW) from NRG and Calpine and authorize the Director of Utilities to execute the associated Confirmation Agreements once the executable copies are prepared. BACKGROUND On April 24, 2006, (in response to mandatory planning and operational requirements of the California Independent System Operator or CAISO), the Azusa Utility Board adopted a "Resource Adequacy Program" for the City of Azusa. In general the program provides that the City procure sufficient electric power capacity plus 15% for reserve margin ahead of time to ensure adequate supply of electricity. It should be noted that all Publicly Owned Utilities (POU) serving load with the California ISO Balancing Authority Area adopted similar resource adequacy (RA) programs. Based on the ISO's annual engineering studies, a portion of the RA capacity has to be derived from "local" resources — i.e. generating resources interconnected within or near the Los Angeles Basin. Azusa satisfies a portion of its non-local RA capacity (i.e. system RA capacity) through capacity associated with Azusa's external resources - San Juan, Palo Verde, and Hoover; however, local RA capacity has to be obtained/purchased from parties operating generating resources in the LA basin. 031 Local Resource Adequacy Capacity Purchases April 25, 2011 Page 2 Azusa's local RA requirement for 2012 is projected to be 35 MW, 4 MW of which can be satisfied through Azusa's rights in the Garnet Wind Project, the San Dimas Hydroelectric Plant and the MWD Hydroelectric Project. As a consequence, the 31 MW balance of local RA requirement must be procured from a third party. Staff issued a request for proposals for system and local RA capacity products for 2012; the request for proposal is attached herein. Five (5) entities responded to the RFP with various terms and conditions. Products offered by the responding entities met the local and/or system RA capacity attributes sought by staff and outlined in the RFP. Based on our recent experience, as well as our 2012 outlook, the submitted system RAC bids are not competitive. Accordingly, we do not recommend transacting for that particular product at this time. We will continue to monitor the market for better pricing opportunities. However, the local RA capacity bids are more in line with our expectations and pricing outlook for 2012. As a matter of fact, the combined weighted price from the most competitive local RA capacity bids we are recommending herein for your approval is some 15% lower than the similar product procured last year for Q3 2011. Of the five qualified responses, NRG and Calpine provided the lowest combined price for 31 MW of the local RAC product. Accordingly, Staff recommends purchasing 20 MW of Local Resource Adequacy Capacity from NRG - priced at $2.00/kw-month for the first 10 MW and $2.50/kw-month for the second 10 MW, and 11 MW from Calpine — priced at $2.60/kw-month. The purchases would be consummated under the Western Systems Power Pool (WSPP) Agreement which has been previously approved by the Utility Board. Appropriate Confirmation Agreements to memorialize the transaction will be prepared and signed by the parties in the near future. FISCAL IMPACT The purchase of the aforementioned local Resource Adequacy capacity will cost about $883,200. Prepared by: Yarek Lehr, Assistant Director of Resource Management 032 THE CITY OF AZUSA DEPARTMENT OF LIGHT & WATER, CA Request for Proposals (RFP) for System and Local Resource Adequacy Capacity for CY 2012 The City of Azusa Department of Light & Water (Azusa) is hereby soliciting competitive proposals for System and Local Resource Adequacy Capacity (RAC and LRAC, respectively) resources that can satisfy the California Independent System Operator's (CAISO) system and/or local capacity requirement, as applicable, for Load Serving Entities (LSE) in the Los Angeles Basin. The CAISO Controlled Grid load takeoff point for loads served by the City of Azusa is the Southern California Edison's Rio Hondo 230 kV substation located in the City of Irwindale, CA. A.Introduction 1. Azusa seeks competitive proposals from qualified sellers whereby a seller would sell, and Azusa would purchase RAC and LRAC products as described in Section B of this transmittal letter. 2. Azusa reserves the right,without qualification and in its sole discretion,to accept or reject any or all proposals for any reason without explanation to the respondent, or to make the award to the respondent(s),who's offer(s), in the opinion of Azusa, will provide best value to Azusa. Determination of best value may include both price and non-price factors. B. Description of Product Solicited The proposed and offered RAC and LRAC products must satisfy all applicable requirements of the CAISO FERC approved tariff,corresponding CAISO engineering studies,and other CAISO provisions and requirements as they may be applicable to resources qualified to supply system and/or local area adequacy capacity,as appropriate, for loads interconnected in the East Los Angeles Basin. IMPORTANT NOTE: Any offered and transacted LRAC product shall be deemed to have also RAC attributes associated and bundled with it. C.Term The expected term for RAC procurement is July 1,2012 through September 30, 2012 (Q3, 2012). The expected term for LRAC procurement is January 1, 2012 through December 31, 2012. [Potential sellers may specify monthly(ex. July 2012 or July and August 2012), quarterly (ex. Q3 2012), seasonal (ex. from May through October 2012), or annual (ex. CY 2012) terms]. 1 033 D.Volumes The expected monthly volumes of RAC to be procured: up to 20 MW The expected monthly volumes of LRAC to be procured: up to 35 MW [It is expected that interested parties will submit offers in increments no smaller than 5 MW and priced in $/kW-month or$/kW-year]. E.Additional or Bundled Products Although the main goal for this RFP is to procure the RAC and LRAC products, interested parties may also offer additional bundled products such as associated firm energy,energy call options,A/S, and other—provided that qualified RAC or LRAC is part of the bundle. F.Additional Resource Adequacy Considerations Azusa shall have rights to all available and foreseeable resource adequacy attributes (associated attributes) from resources procured pursuant to this RFP. Such associated attributes may include system resource adequacy capacity, zonal resource adequacy capacity, and any other reliability adequacy capacity attributes that may be required by Azusa's jurisdictional regulators or system operator(s) Although Azusa intends to retain the product(s)to be procured under this RFP for its own use,Azusa shall be deemed to have the right to subsequently sell (resell)all or portions of products procured as a result of this RFP. G.Proposal Selection Criteria 1. Azusa, at its sole discretion, shall evaluate responsive proposals and may select proposals, if any, which provide the most value to Azusa. 2. Any proposal or a set of proposals may be combined with other proposals, at Azusa's sole discretion. 3. Azusa shall determine at its sole discretion the value of any and/or all proposals. 4. Azusa shall evaluate any proposals in terms of price and non-price attributes. 5. Azusa shall perform an initial screening evaluation to identify and eliminate any proposals that are not responsive to the RFP, do not meet the minimum requirements set forth in the RFP, are clearly not economically competitive with other proposals, or are submitted by respondents that lack appropriate creditworthiness, sufficient financial resources, or qualifications to provide dependable and reliable services. 6. Azusa reserves the right to reject any, all,or portions of the proposals received for failure to meet any criteria set forth in this RFP. Azusa also may decline to enter into a power purchase arrangement with any respondent, terminate negotiations with any respondent, or abandon this RFP process in its entirety. 7. Those respondents who submit proposals agree to do so without legal recourse against Azusa, and its directors, officers, employees and agents for rejection of their proposal(s) or for failure to execute a power purchase agreement for any reason. Azusa shall not be liable to any respondent or party in law or equity for any reason whatsoever for any acts or omissions arising out of or in connection with this RFP. 2 034 8. Respondent shall be liable for all its costs and Azusa shall not be responsible for any respondent's costs incurred to prepare, submit, or negotiate its proposal, a contract or for any other activity related thereto, except as may be explicitly agreed upon in any power purchase contract arising from a proposal. H.RFP Process and Schedule The following schedule is expected to be followed for this RFP: Tuesday,April 12, 2011-RFP Issued Monday April 18, 2011 12:00 PM(Noon)PPT-Deadline to submit proposals Wednesday,April 20 by 3:00 PM PPT- Selection of recommended proposals(if any)and notification(s) Monday,April 25 -Approval of the agreement(s)by Azusa Utility Board/City Council (tentative) I.Transacting mechanism Azusa strongly prefers and expects to transact under the Western Systems Power Pool (WSPP)Agreement. To expedite the review process, respondents are strongly encouraged to submit a pro forma Confirmation Agreement under the WSPP Agreement. J.Final Acceptance of offers subiect to Azusa City Council approval Offers selected by Azusa staff shall be deemed formally accepted by Azusa only upon the Azusa City Council/Utilities Board action to accept such selected offers and directing Azusa staff to execute the pertinent confirms. K. Submission Requirements Proposals should be e-mailed on or before Monday April 18, 2011 12:00 PM(Noon) PPT to: Yarek Lehr Assistant Director of Resource Management City of Azusa ylehr@ci.azusa.ca.us Richard Torres Power Resources Coordinator City of Azusa rtorres@ci.azusa.ca.us Late or non-responsive proposals may not be considered. 3 035 Important Note: No contact should be made with Azusa Utility Board,Azusa City Manager's office, or Azusa Light and Water executive management. Any questions regarding this RFP should be directed to Mr. Yarek Lehr via e-mail at ylehr@ci.azusa.ca.us or Mr. Rich Tones via email at rtorres@ci.azusa.ca.us. 4 036 T 111111111111111111111111111111111111111111111M111111111AL 1:34A INFORMATIONAL CHr a rts INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 SUBJECT: EMERGENCY CONTRACT REPAIR WORK AT 543-529 VIRGINIA ANN DRIVE BY MJ STAR LITE, INC. TO INSTALL UNDERGROUND CONDUIT. BACKGROUND During the early morning hours on Saturday, March 12, 2011, an old "direct buried" secondary service cable installed sometime in the 1980's along Virginia Ann Drive failed beyond repair. In an effort to restore power to the affected residences, Electric Crews put up a temporary service line while awaiting a permanent fix to be arranged. The secondary service needed to be repaired as soon as possible and avoid the potential exposure to hazardous conditions. Azusa Municipal Code (AMC) Section 2-522(a) delegates authority to the City Manager to approve expenditures up to $100,000, to address emergency situations. And so, staff solicited a quote from a contractor, MJ Star-Lite, Inc. (who was doing contract work for the Department at the time) to complete the needed repairs, which included construction of underground secondary conduit to meet all Light & Water electric construction standards. The bid amount of $34,875 was approved by the City Manager pursuant to his delegated authority in the AMC. The ratification of the emergency contractor work was originally presented to the Utility Board during the March monthly meeting, but the meeting was adjourned due to lack of quorum. The emergency repair work got underway and was completed as of April 12, 2011. Given the extenuating circumstances, this urgent repair work was completed safely and expeditiously. Interruption of services to the affected residences was kept to a minimum, and during the conversion process, we did not receive any complaints from the homeowners. 037 Emergency Repair Work/Contract—MJ Star-Lite April 25, 2011 Page 2 FISCAL IMPACT The cost for this repair work ($34,875) will be paid from the approved Electric Division Operating Budget for Distribution Maintenance of Overhead and Underground Lines. Prepared by: F. Langit Jr, Assistant Director of Electric Operations Cary Kalscheuer, Assistant to the Director of Utilities 038 G. a AZUSA C.11T R a4'Lfri INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE • I.A UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES DATE: APRIL 25, 2011 SUBJECT: PILOT PROJECT UPDATE - NOVINIUM CABLE REJUVENATION On September 27, 2010, the Utility Board awarded a contract to Novinium Inc. for "rejuvenation" of existing underground electric cable at 955 East Arrow Highway. One of the goals of this pilot project is to demonstrate the viability of cable rejuvenation in comparison to conventional reconstruction of underground lines. Cable rejuvenation utilizes low pressure to inject a patented fluid (Perficio Injection Fluid) into the cable strand in order to create a barrier and protect against insulation failure. Thus, cable life is extended by an additional 15 to 20 years. The cable rejuvenation pilot project at 955 East Arrow Highway commenced on December 13 2010, and the entire cable treatment process was completed in 4 working days. The highlights of this pilot project are: Original bid contract cost of Novinium cable rejuvenation $34,722.52 Internal cost incurred(labor&equipment expense) $17,190.47 Total Cost $51,912.99 Total footage of 12 kV #2 Str. primary cable that was treated 3,488 feet Cost/ft of direct buried cable rejuvenation $14.88 Estimated cost of conventional cable reconstruction $200,000* Cost/ft of conventional cable reconstruction $57.34 Overall savings from utilizing cable rejuvenation at $42.46/ft or 955 East Arrow Highway $148,087.01 Prepared by: F. Langit Jr., Dan Kjar and Hien K. Vuong 039 1111.3 AZLSA INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF TH► • SA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE' DATE: APRIL 25, 2011 SUBJECT: EXPANSION OF THE SMALL BUSINESS AUDIT AND RETROFIT PROGRAM TO INCLUDE "KEEP YOUR COOL" SERVICES BACKGROUND In 2008, the Public Benefit Small Business Audit and Retrofit program was instituted to provide auditing and retrofit services to the small business community. To date, the recommendations and retrofits have been primarily limited to lighting and the building shell. By expanding the program to include the "Keep Your Cool" services, the program will also target the food and beverage industry that includes convenience stores and small grocery store customers with refrigerated cabinets. The in-store refrigeration systems that are currently being overlooked will be targeted with cost effective measures including, but not limited to, refrigeration equipment tune-ups, refrigeration cabinet door seal replacement and inside-case lighting retrofits. Keep Your Cool is a service being utilized in Northern California by various utilities and Azusa Light and Water will be the first Southern California utility to take advantage of the SCPPA joint participation agreement. The projected 15% overall saturation rate, or approximately 30 projects, should be reached within approximately two and a half years at which time the program will be re-evaluated. Most qualifying customer will be able to benefit from more than one of these measures. • Electronically Commutated Motors (ECMs) • Evaporator Fan Controllers • Anti-Sweat Heat (ASH) Controls • LED Case Lighting • 25 watt T8 Lamps • Door gaskets • Strip curtains • Auto closers 040 Keep Your Cool April 25, 2011 Page 2 The food and beverage industry breaks down into the following categories: • Hospitality (restaurants, bars, lodging) • Grocery (retail and wholesale) • Convenience and Liquor stores • Institutions (schools, health care, correctional) Based on Keep Your Cool's experience with thousands of customers, they should be able to maximize the cost effective energy savings for the Azusa Light and Water customers. FISCAL IMPACT Funds have been budgeted in the amount of$60,000 annually for the expansion of this program under account number 24-40-739-082-6625/CISBAR-6625. Program saturation is estimated at two and a half years. Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator 041 Ga ! tax#i a ' aoTpi € ° A7USA .1647 A 'WATER INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF T ' A. USA UTILITY BOARD FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE Ad DATE: APRIL 25, 2011 SUBJECT: SECOND QUARTER BUDGET REPORT FOR WATER AND ELECTRIC FUNDS FOR FISCAL YEAR 2010-11 Attached reports include unaudited budget information regarding the water and electric funds through December 31, 2010. In general, both the water and electric funds have positive net cash flow through the second quarter of FY 2010-11. This is despite the lowest levels of consumption (sales) during same period for the past 7 years for both utilities. Below table shows sales and billing trend for electric utility since FY 04-05 through second quarter of fiscal year: 2nd Quarter Electric Sales/Billings FY kWh Sales Billings 04-05 133,339,089 $14,655,236 05-06 129,833,967 $ 14,380,345 06-07 139,649,981 $ 16,052,403 07-08 136,375,872 $ 15,872,058 08-09 139,176,034 $ 18,276,924 09-10 133,286,521 $ 16,229,555 10-11 126,364,551 $ 17,834,281 042 Quarterly Financial Report APRIL 25, 2011 Page 2 Below table shows sales and billing trend for water utility since FY 04-05 through 2nd quarter of fiscal year: 2nd Quarter Water Sales/Billings FY CCF Sales Billings 04-05 5,191,531 $8,321,053 05-06 5,236,280 $7,874,961 06-07 5,677,810 $8,815,286 07-08 5,083,893 $8,696,748 08-09 4,735,337 $7,841,814 09-10 4,503,313 $8,513,021 10-11 4,269,226 $9,248,071 Higher summer month consumption, conservative spending, and previously approved rate adjustments are mainly why both utilities are in positive territory in terms of cash flow. The Power Cost Adjustment mechanism adopted by the Utility Board in June 2010 has been instrumental to the Electric fund. The electric utility reserve policy is $12.6 million and the estimated reserve was $11.4 million at the end of last FY. Due to the PCA, the electric utility increased revenues by $1.2 million through December 31, 2010. The PCA, combined with other factors, enabled an increase in reserves to about $12.2 million through the second quarter. The Water Utility started off the fiscal year with a $22 million cash reserve. Although the reserve policy is $25 million, the Water Utility had a net increase in cash of about $1 million through the 2nd Quarter. However, some water main improvement projects have yet to commence and so staff anticipates that this excess will be fully encumbered by FY End. Through December 31, 2010, both the Water and Electric Utilities are meeting minimum debt service coverage ratios required by long-term debt financing agreements. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Elect ric-2ndQtry.pdf Water-2nd- Qtry.pdf 043 Electric Utility Quarterly Budget Report 2nd Quarter Ended Dec 31, 2010 (UNAUDITED) f 2nd Qtr Ended Consumption and Reserve Info Prior FY End Percent 12/31/10 Consumption-kWh: 253,116,501 126,364,551 49.92% Cash/Reserve Prior Fiscal Year Ends" $11,439,529 $12,172,144 106% FY 2009-2010 Budget Information Budget Actual Thru Percent of 10-11 12/31110 Budget Revenue Retail Billing Amounts(2) $31,515,900 $17,834,280 57% Resale Revenue(3) 6,364,025 3,190,363 50% Other Miscellaneous Revenue 303,300 204,002 67% Interest Income 245,715 139,800 57% Total Revenues $38,428,940 $21,368,445 56% Expenses Purchased Power(3) $25,564,120 $13,333,616 52% Transmission/Dispatching 3,942,015 1,938,325 49% Operations and Maintenance 3,302,795 1,477,383 45% Administrative and General(4) 2,259,810 1,259,832 56% Franchise and In-Lieu-Tax 3,456,260 1,816,113 53% Subtotal Expenses $38,525,000 $19,825,268 51% Capital Expenditures/Debt Service Long Term Debt Service(5) $948,615 $474,308 50% Capital Outlays and Projects(6) 2,082,749 336,255 16% Total Expenditures $41,556,364 $20,635,831 50% Adjustments Transfers Out(') 9,450 0 0% Total Expenditures and Transfers Out $41,565,814 $20,635,831 50% Change in Cash/Reserve ($3,136,874) $732,615 6% Debt Coverage Ratio(8) 3.54 7.08 (1)Source:FY 2009-10,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 Dec 31,2010. (3)Source:Power Resources Division. (4)Fund 31 actual and encumbrances plus CIS upgrade multipled by 35%for Electric Fund's share. (5)Based on annual debt service payments for Series B and C,2003 Certificates of Participation. (6)Capital Outlay Accts and Capital Improvement Project budget figures. (7)Interest Income is transferred after fiscal year end if there is positive net income. (8)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 2011. 044 Water Utility Quarterly Budget Report Second Quarter Ended Dec 31,2010 (UNAUDITED) 2nd Qtr Consumption and Reserve Info Prior FY End Percent Ended Consumption-CCF: 7,853,732 4,269,226 54% Cash and Investments:° $ 22,174,446 $ 23,253,524 105% FY 2009-2010 Budget Information Budget Actual Thru Percent of 10-11 2nd Qtr Budget Revenues Retail Billing Amounts(z) $17,521,365 $ 9,248,071 53% Other Revenues 515,000 310,795 60% Interest Income 500,000 223 0% Total Revenues $ 18,536,365 $ 9,559,089 52% Expenses Production $3,203,405 $1,438,488 45% Purchased Water 3,212,415 835,104 26% Transmission and Distribution 2,505,270 1,188,025 47% Customer Accounting and Sales(3) 4,062,145 2,244,544 55% Administrative and Engineering 983,105 304,612 31% Franchise Fees 390,665 190,208 49% Subtotal Expenses $ 14,357,005 $ 6,200,980 43% Capital Expenditures/Debt Service: Debt Service Payments(4) $4,520,170 $ 2,260,085 50% Capital Improvement Budget(5) 2,194,800 42,453 2% Capital Projects Funded by Bond (23,508) (23,508) 100% Total Expenses(Less Bond Funding) $ 21,048,467 $ 8,480,011 40% Adjustments Transfers Out(b) $0 $0 0% Total Expenditures and Transfers Out $ 21,048,467 $ 8,480,011 40% Net Change in Cash(Negative) $ (2,512,102) $ 1,079,078 5% Debt Coverage Ratio" 1.01 1.57 Notes: (1)Source:Cash and Investments from FY 09-10 CAFR. Reserve Policy is$25 million. (2)Based on Customer Information System Billing Amounts through Dec 31,2010. (3)Customer Service Allocation to Water Fund,including 65%of Cost of CIS Upgrade Project. (4)Principal and Interest on 2003 COP and 2006 Revenue Bonds thru 2nd 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 9/30/2010,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. 045