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Home My WebLink AboutAgenda Packet - April 22, 2002 - CC i 7/1:11rE 44:u CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES��-1 DATE: APRIL 22, 2002 SUBJECT: AMENDMENT TO CONSULTING SERVICES -YARD OFFICE BUILDING RECOMMENDATION It is recommended that the Utility Board/City Council approve an amendment to the existing architectural consulting services agreement with Henry Woo Architects, Inc. in an amount of $17,200. BACKGROUND This amended service agreement is to provide the preliminary phase of the proposed Electric Division offices at 10"' and Vernon Street. This phase of work will include space programming for offices, meter testing facility, and large truck garage with some storage spaces; prepare preliminary plans, exterior building elevations, and conceptual landscaping for presentation to Planning Commission and neighboring home owners; and to provide coordination among different affected agencies. FISCAL IMPACT This cost will be charged against the budgeted funds for the building. However, it is very likely that if this site is approved for the proposed building, the overall design and construction costs will be less than what was budgeted because this site will have less costs in site preparation, less design work and less construction costs for one story building; and more likely to get better construction bid due to it being a clean site. Prepared by: J. Hsu , , , X/9d/od* I Of AZUSA LIGHT 8 WATER CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITI DATE: April 16, 2002 SUBJECT: BUDGET AMENDMENT TO COVER INCREASED PUBLIC RELATIONS PROGRAMS RECOMMENDATION It is recommended that the Utility Board/City Council authorize a Budget Amendment in the amount of $25,000.00 to cover increased Public Relations Programs. BACKGROUND Additional funds are deemed necessary in order to adequately provide for additional Public Relations programs and advertisements promoting continued growth in the City of Azusa. FISCAL IMPACT Fiscal impact to Azusa Light &Water will be $25,000.00. Funds will be transferred from the Utility's retained earnings. Prepared by: Phyllis Bradley Administrative Services Supervisor 4P(id 1a� axciA01/ 71-p v� 5 cr C-M c0. 01. TK 8 !�,,I m C L m L O : § 4) E lf; o Q N N 1 o ) oii a) d 0) m a -o 0 3 i m m J *k Z Q (9 v 0 O W 0 Q. ya EQ 0 z Z_ I- LL 1 W I 1 D as L LLI di is) 2 I U o Z I 0 CL ) 1 W m v `p o m C I O V c� c Q 0 Z Q § G o r r it;. LIJ Z 0 c � Z 8 03 o U15 co m m Is Q. ►l. M E — LI a_ J o WQ. m `� C V O Q i " O G 2 U 8 8 •D 1 an• d a+ • N W TL I Z Q? in wn o I I c 0 N N g:2 � It,t,--,1-- oI Q o L m I 1 .1 ``► U. IL d Loo ' y 1 I 0 O c4- �I I I O ,- m-oma cTac o . Oi c o�o 'o (o to co v) LLnWU 0 0 0 U C e0.Qv I k c 0— J I Weo$ v B a88 O T @oo c 1 �I .. 0 ..a.. d 1 1 I -I •A (l cog " a. c= Q 'I (\\\ t4T Lui in ~ 0113 ui88 1 r-I i— 087E Thil Iflul 1 O N �` Wd mmmm co 0 j EEEE j ` O G It $ Q 22'22 = m m a a) C c � a � m QH E aw dc c •C ) 0 7 ��c6v E a) CU = m c c Q. D C.) tnw a 03 �, 3 CD 0 Cl) a ¢ m W z 0 'u. 0 0 I — 27 . 8 California Independent System Operator 1 Transmission Owner Presentation Presented by Bob Tang April 22, 2002 Issue to be Considered . Rate freeze under the SCE Transmission Contract comes to an end at the end of 2002. . Substantial cost increases is expected. . Joining the CAISO market as Participating Transmission Owner (PTO) may be a viable mitigating strategy. Azusa's Transmission Costs r---- Today: -----------•-------•—•------------------I SCE Contracts = $318,374 /year Mead-Adelanto SCPPA _Mead Phoenix $375204 /year Other Contracts = $400,615 /year i ! Total Cost = $1,094,193 tyear i ! Average cost per MWh of load: _ $4.56 NMI I I Commencing CY2003 i I SCE Contracts = $736,320 /year Mead-Melanto = SCPPA Mead Phoenix $375,204 /year Other Contracts = $400,615 /year Total Cost = $1,512,139 /year I ! Average cost per MWh of lad: = $6.30 /MWh 4:a Transmission Cost Increase • The City faces a cost increase of no less than $417,946 or about 40% 2 y , Cost Mitigation Alternatives 1. Terminate SCE contracts and procure CAISO transmission services 2. Keep SCE contracts and become "partial" PTO 3. Keep SCE contracts and become full PTO Cost Under Alternative 1 Terminating SCE Contracts i ! CAISO Transmission Costs = $480,000 /year SCPPA Adelanto $375,204 /year Other Contracts = $400,615 /year . Total Cost = $1,255,819 /year Pros: Cost increase is reduced to $161,626 or about 14.7% Cons: No assurance that CAISO transmission will be available for our use. Additional cost to assure availability. 3 Cost Under Alternative 2 Keep SCE Contracts & Become "Partial" PTO* SCE Transmission Costs = $736,320 /year i i SCPPA Mead-Adelanto = $375,204 /year Mead Phoenix i Other Contracts = $400,615 /year i (Third Party Transmission Use ($679,000) /year Reimbursement) Total Cost = $833,139 /year Pros: 1) By allowing other entities to use the City's transmission,the City will get reimbursed for such use. Total cost reduction of$261,054 or about 24%reduction 2) The City will retain priority use of City's transmission Cons: i) The CAISO reimbursement methodology may change over time. 2) The reimbursement is expected to decrease as more entities become PTO. *"Partial"PTO assumes City to retain exclusive usage of Mead-Adelanto&Mead Phoenix Qna Cost Under Alternative 3 Keep SCE Contracts & Become Full PTO r i SCE Transmission Costs = $736,320 /year SCPPA Mead-Adelanto = $375,204 /year Mead Phoenix Other Contracts = $400,615 /year (Bard Party Transmission Use $1,054,000)Reimb°rsementt) /year i ! Total Cost = $458,139 /year Pros: Same as in alternative 2,except cost reduction is increased to$636,054 or about 58.1%reduction Cons: Same as in alternative 2 4 Staff Recommendation to In view of substantial cost reduction potential and limited downside exposure on the reimbursement, staff recommends the board authorize the staff to prepare application to become "Full" PTO and enter into negotiations with SCE and CAISO to effectuate the PTO participation 5 Power Resource Cost Accounting LONG TERM SHORT TERM TRANSMSSION ANCILLARY SCHEDULING TOTAL WHOLESALE NET MONTH CONTRACTS PURCHASES COSTS SERMCE COSTS: DISPATCHING COSTS COSTS REVENUES COSTS JUL01 853195.97 7805074.29 145450.70 8550150 1845029 8,989,57275 (8,17714400): 612,428.75 461001(1 952,170.51 8,143574.00 145450.70 32,840.72' 18842.03 9293,87798 (457009300), 5223584.96 SEP01 r) 954,15547 7,219,438.75 145450.70 20,33678 1706026 8,35744198 (4522.773550) 373466848 OCT 01ri 1,16847421 1,097,088.85 119240.70 13,89867 1797033 2,416,88076 (1,01700946): 1,399871 30 NOV01 rn 949,38477 1534,425.25 113,330.70 12,44025 1654941 2,126,12938 (564,71350),..__1561415.58 DEC01 949,364.77 1,11055380 113,330.70 1152352 17,25479 2,202,24728 (1,074,61787), 1127,42961 JAN02 97411577 698536.50 113,330.70 18,4100) 20,23852 1822,93150 (796,700.05)::, 1526231A5 FEB02 ....974,55777....... 640,28585 113,330.70 10000000 1706028 184521460 (707,13640) 1138578.20 1A6602 974557.77 64852970 113,330.70 10000000 1718028 1853598.45 (69331464). 118028381 APR 02 MAY 02 JUN02 TOTAL $8550,19701 628,395588.89 91125248.30 $375.051.45 9160,41321 $3890749466 (821,72370252). 017183792.14 (1 LOST WHOLESALE REVENUES DUE TO SM4 JUAN OUTAGE AMOUNT TO S4,416,670. Cl LOST WHOLESALE REVENUES DUE TO SAN JUAN OUTAGE MA3UN7 TO$3,011,924 _._. ( ( LONG TERM CONTRACTS INCLUDED$204,104 OF SMI JUAN COST TRUE-UP FOR FY0001 r--) LOST WHOLESALE REVENUES DUE TO SAN JUNIOTAGE AMOUNT T05407585.75 (1) INCLUDES SCPPA LONG TERM CO TRACTSANDPASOOENACONTRACT ° ....._.. .._.. _._... _.... ... (2) NCLUOES ALL SHORT TERMI9MCH113E3 FOR HEDGING AND LOW BALANCING PURPOSES... (3) INCLUDES ALL SHORT TERM MD LONG TRIWSMSSIONCON1RACTCOSTS i __ ....._ -. (4) COSTS CHARGED Br CIWFORNM9OFPENDENTSYSTEYOPMATOR FOR SYSTEM Rummy FUNCTIONS (5) INCLUDES COSTS FOR SCHEDULING MD DISPATCIMD OFELECTRICITY • ..... .. -. _. (6) SUM OF(1)THR000H(5) (7) NHOLESBLE REVENUES DOMED FROM SALES OF EXCESS POKER ..... ..._. __.._ (8) DIFFERENCE OF(6)AND Cn ..................................._._ • wiry C AZUSA Azusa Utility Board Meeting April 22, 2002 Power Resources Division Monthly Report • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update 1I � z d. f CITY OF AZUSA ENERGY CONSUMPTION COMPARISON PERCENT MONTH FY00-01 FY01-02 CHANGE JUL 24,058 21524 -10.53% AUG 28239 22908 -12.89% ... SEP 23,123 21,242 -8.13% OCT 20,525 20,485 -0.19% NOV 18,950 18,350 -3.17% DEC 19284 18,431 -4.32% JAN 19,426 18,833 -3.05% FEB 17,258 17,206 -0.30% MAR 18,121 18,548 2.38% APR MAY JUN TOTAL 186,964 177,527 5.05%,. ENERGY CONSUMPTION N MWH CITY OF AZUSA PEAK DEMAND COMPARISON PERCENT MONTH FY00-01 FY01-02 CHANGE JUL 51.8 46.6 -10.04% AUG 55.0 46.9 -14.73% SEP 55.5 47.4 _-1459% OCT ... . 42.0 _.. 50.4 20.00% NOV _...... 35.3 362-- 255% DEC 35.5 34.0 _.. -423% JAN 34.9 34.1. -229% FEB 35.8.... 38.2 ...1.12% 1 MAR 34.5 35.7 3.48% APR MAY JUN PEAK DEMAND N MW t:a AVERAGE AVERAGE MONTH ON PEAK PRICE OFF PEAK PRICE APR01 $211 $101 `. ,.4 MAY01 ....... $251 $79 �,., 4. JUN 01 $86 $31 x/ JUL 01 $67 $36 AUG01 $52 _.. $27 SEP 01 $29 $19 OCT 01 $28 $19. ... NOV 01. _...... $25 __.... $17 DEC 01 $28 $19 JAN02 _... . $23 $18 FEB 02 $23 ._$17. _._.. MAR 02 .. _. $34 I $28 APR 02(*) _.. $32 ._._._..._ _.......... $20... ALL PRICES N$IMWH • C)APR 02 PARTIAL MONTH WHOLESALE ELECTRICITY FORWARD PRICES IN CALIFORNIA ........ ._ PERCENT .................._...._.. . ......._.__..............._._..... _.. MONTH ON PEAK PRICE(04/15/02) ON PEAK PRICE(03/18/02) CHANGE CY02BALANCE) $40.00 $40.5 -1.23%'. CY03 $40.50 $41.0 -1.22%'. ALL PRICES IN$/MWH The forward prices for the balance of CY02&CY03 have been volatile in the past 4 weeks.