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HomeMy WebLinkAboutAgenda Packet - September 22, 2003 -CC 4 it)r ,1 :72 A7USA 3.IGHT & WATER CUSTOMER APPEAL TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 22, 2003 SUBJECT: CUSTOMER BILLING DISPUTE - MR. CHRIS BABAKITIS RECOMMENDATION It is recommended that the Azusa Utility Board/City Council support the staff recommendation and decision of the Director of Utilities that the charges billed on this account are correct. BACKGROUND On July 21, 2003, Mr. Chris Babakitis, 25251 Vespucci Rd., Laguna Hills, California, wrote a letter disputing a water bill for the period January 29 - March 27, 2003 for his property located at 636 W. Arrow Hwy., Covina, California, Account Number 233-0810-04-3. See details on attached letter to customer dated August 4, 2003 and our chronological notes regarding this account. FISCAL IMPACT Unpaid utility bill is $140.64. Attachments: Ti Chris Chris Babakitis-kr-080403.1 Babakitis-Chronologic t4) ) g ja_c je,4 /tiyt /2?/,0 006 1 " Page 2: Mr. Chris Babakitis After reviewing your account and the record of events over the past six months, I have determined that the charges are appropriate and correct. You have deposited a check of $150.00 along with your letter of dispute. If you agree with my decision you need to send us another check in the amount of$140.64 so we can return your check($150.00) deposited for dispute resolution. Or you can authorize the$150.00 check to be applied to your current balance of$140.64, with a credit of$9.36 to be applied to your next bill. If you do not agree with my decision, you can appeal to Azusa City Council/Utility Board by submitting a written request detailing your dispute, addressed to Azusa City Clerk at 213 E. Foothill Blvd., Azusa, CA 91702, within 30 days after receipt of this letter. However, you need to let us know which action you plan to take before August 15, 2003, so automatic shut-off for delinquency will not be processed by our billing system. Thank you for your patience as we looked thoroughly into this matter and gave it every consideration possible. We value you as a customer and strive to give you excellent customer service. Sincerely, Joseph F. Hsu Director of Utilities Cc: Karen Vanca, Assistant Director of Customer Care& Solutions 008 cancel that statement and requested "he only wanted to pay $12 . 07-the meter charge and usage amount . " He also wanted documentation about the problems we experienced; that he was not aware of these. $12 . 07 Mr. Babakitis is willing to pay excludes $27 . 00 service charge to open account, $ . 80 RWCAF, and $ . 77 Covina User Tax. 01 i 4 Fe9A*se—ci,7 44, %a, 4,3; ," x s 7n. v ..cam, AZUSA COI 4`4.41A4 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: SEPTEMBER 22, 2003 SUBJECT: APPROVAL TO ADVERTISE FOR BIDS- REPAIRS TO WELL NO. 2 RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve the Advertisement for Bids for repairs to Water Well No. 2. BACKGROUND Water Well No. 2, located at the Spreading Ground Wellfield, has developed a large cavern around, and at, the bottom of the casing, possibly due to years of sand pumping. The well casing has also aged and requires relining; the well will require redevelopment once the new lining and gravel pack have been installed. When it is running, Well No. 2 is the Water Division's largest producing well and needs to be put back in production to increase the Water Division's production and operational capability. To date, the other wells of the wellfield are producing enough water to meet the system needs. FISCAL IMPACT Approval to let this project out to bid has a minimal fiscal impact for the cost of duplication and handling of bid packages. Fiscal impact of the project will be discussed in detail when the low bid contractor has been determined, and the Board is asked to approve a contract for the project with that contractor. Prepared by: Chet F. Anderson, Assistant Director- Water Operations /i / 9AVi glowaitimb eillins 4 A 4 AZUSA _ .C4s1 S W4YE4 AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 22, 2003 SUBJECT: APPROVAL OF CONTRACT WATER RATE FOR MILLER BREWERY RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve the Contract Water Rate for Miller Brewery, Irwindale, California. BACKGROUND In February 2002, the Azusa Utility Board/City Council approved Water Supply Agreement to provide water service to Miller Brewery. The Agreement authorized parties to agree upon a water rate (Permitted Rate), which was agreed to as the same rate that was being applied to Golf Course. The rate in effect for the Golf Course was $0.94 per hundred cubic feet (CCF) plus monthly Meter Charge when water delivery to Miller began on June 7, 2003. Since the Agreement with Miller Brewery requires that the Permitted Rate be in effect for one year before it can be adjusted, the recent 4.35% adjustment in the Golf Course water rate cannot be applied to Miller Brewery. Therefore, staff seeks your approval to establish a Contract Water Rate for Miller Brewerywhich in effect is to continue applying the same rate as was agreed upon when Miller Brewerybegan taking water in June, 2003. FISCAL IMPACT While the difference between the Golf Course Rate and the Miller Brewery Rate is $0.04 per CCF, imposing the higher rate on Miller Brewery would be a breach of contract and cause for dispute and potential termination of Agreement, and would result in a substantial loss of revenue to the Utility. Prepared by: bAl /7(---ht Cary Kalscheuer, Assistant to the Director of Utilities Zag)/ot 017 0/k„, *4-01K4 ,.. ,. -. AZUSA AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES ^ DATE: SEPTEMBER 22, 2003 , �J SUBJECT: APPROVAL OF SAN JUAN UNIT #3 ENERGY EXCHANGE LETTER AGREEMENT BETWEEN THE CITY AND THE PUBLIC SERVICE COMPANY OF COLORADO RECOMMENDATION It is recommended that the Utility Board/City Council approve the Letter Agreement for Energy Exchange of San Juan unit #3 power between the City and the Public Service Company of Colorado (PSCo) and authorize the Mayor to execute the agreement upon the preparation of the execution copy. BACKGROUND Since 1998 the City has been actively managing its power resources. Due to the unit contingency nature of City's San Juan resource and the predominant importance of San Juan resource to the City, the City has almost always mitigated the operational and risk management complexities of managing this resource by entering into contractual arrangements with third parties to exchange or otherwise sell the San Juan unit output and purchase firm resources to meet our retail needs. Due to the soon-to-be expired contractual arrangement for firming San Juan energy, staff has reexamined the options for firming San Juan power commencing May 1, 2004. The detailed analysis of the options for San Juan energy is encompassed in the attached report. Based on this examination and the evaluation of four proposals received for firming San Juan power, the proposal submitted by PSCo stood out as the best proposal from the financial standpoint. The proposed arrangement has an expected monthly cost of between $22,050/month to $52,920/month. The low end of monthly cost will be achieved if San Juan unit 3 has low forced outage rate, and the high end of monthly cost will occur if San Juan unit 3 has high forced outage rate. The projected monthly cost of this arrangement at historical San Juan availability rate of 90% is $29,800/month. Given that PSCo's proposal is the best amongst proposals evaluated by staff, staff is recommending its approval. a,100/-- atg,//g1- 01 MEMORANDUM TO: Joe Hsu FROM: Bob Tang,Richard Torres, Tim Vuong SUBJECT: RESOURCE PLAN FOR Q2, Q3 AND Q4 2004 DATE: SEPTEMBER 9, 2003 PROBLEM STATEMENT: The City has procured sufficient power resources to meet its forecast load requirements for Q2, Q3 and Q4 of calendar year 2004. The following are the available resources: San Juan: 30 MW round the clock Palo Verde: 2 MW round the clock Hoover: 4 MW peaking Duke (Jun-Sept): 15 MW summer peaking PPM Wind: 2 MW round the clock Total: 53 MW for the months of June through September, 2004 38 MW for the months of May, October through December 2004 The following are the issues we have to deal with in the quarters of this study: 1. The transmission path for San Juan resource (from Palo Verde Hub to Southern California) is anticipated to be heavily congested, as shown by the price spreads between the Palo Verde hub and Southern California in the forward markets for the time period, of more than $5/MWh. Although the same price spread patterns occurred this summer between Palo Verde and Southern California in the forward markets, the actual price spreads at the delivery time between these two hubs were not as significant as the forward market spreads. Staff believes what happened this summer can be partially explained by(a) this summer has been considerably warmer than normal in Southern California and much more so in the Southwest, thus the majority of the new generation output in the Southwest which was anticipated to head to California ended up been consumed locally and therefore not causing the anticipated strains in the transmission system from Palo Verde into Southern California; (b) the new generation anticipated to come on line did not come on entirely, some of the generation is now expected to come on line later this year; and (c) due to the new operating environment for the new generation, folks are being more conservative in their transmission scheduling and thus less locational differences in prices. 020 The problem we want to solve is stated as follows: We want to minimize the costs of serving our load requirement by utilizing our existing power resources and transmission access while taking into account the price volatility, transmission congestion problems, credit risks, and operational feasibility. OPTIONS CONSIDERED: The staff has considered the following options centered on our single largest resource; the San Juan unit 3. The options are as follow: Option 1: The City sells the entire San Juan output as is, i.e. on a unit contingent basis at fixed price, and buys back at the same time the same amount of power at fixed price. Advantages of this option: a. The cost of"firming" San Juan is known a priori, i.e., the price discount the City will necessarily take when selling unit contingent product. Thus we can budget with precision the cost of firming. b. "No hassle", once the San Juan output is sold, we don't need to worry about the "ups and downs" of the unit performance. Our task becomes a financial risk management activity as opposed to system operational activity in addition to financial risk management activity. Disadvantages of this option: a. We may be foregoing the opportunities of lower replacement power costs if the prevailing spot market prices for replacement power are lower than the fixed prices we lock ourselves in. Option 2: The City firms up San Juan output by paying a fixed firming premium and are subject to spot market prices if San Juan unit is forced out or derated. Advantages of this option: 022 The attached graphs (Graphs 1A= IF, 2A-2F) represent the graphical representation of per unit costs of the options under the scenarios considered. RESULT: The following conclusions can be drawn from the graphs: 1. Under a low discount off(5%discount)the firm price scenario, option 1 is the best option in a high spot market price environment. This is not surprising, given that at low discount off firm price, we incur fewer fees in firming service, and since the firm power we buy is at lower fixed price than the spot market price, it is definitely a winner. 2. Under a reasonable discount off(10% discount)the firm price scenario, option 1 is NOT THE BEST OPTION unless San Juan availability is extremely low (less than 70%) and spot market prices are much higher than the forward market prices. 3. Among the proposals for Option 2, the proposals from Party A and PSCo stand out as being almost indistinguishable in terms of cost per unit of MWh firmed. Proposal from Party B does not stand out as "winner"unless San Juan availability is extremely low (less than 70%). Proposals from Party C never stood as "winner"under any of the scenarios nor at any levels of San Juan availability. OUTLOOK OF THE FUTURE: Although the forecast of the future is always a tricky business, staff believes the following is a reasonable forecast of the future(for the study period)based on the current information: a. San Juan availability is forecast to be at or above the historical performance level of mid 80%to low 90% for the study period. Staff assessment is based on the fact that San Juan unit 3 will have a three-week scheduled maintenance outage in the spring of 2004, so it is expected that the unit should be in superior performance level for the period immediately following the scheduled maintenance outage. b. The forward market prices are good indicators of the spot market prices for the study period. Given the stability of spot market prices this spring and the summer even under a warmer than usual summer and the strong correlation of gas prices to electricity prices, and the anticipated healthy gas market in the next twelve months, staff forecast that the spot market will remain stable without major"blow out" and"bear market" and thus the sensitivity range considered by this study of minus to plus 20% off the forward market prices is adequate representation of the future spot market price range. 024 witiva\L' k Citi . 1 ' , zr.„,t 'illtittatirLit- Vits.A1 '-,„ ,,,`,.:;%t-;;,.;;,, ,,,,,,2±l ce'.';',,n 1 F j,..... :�1 L U` A .CMI i KATtt AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES' DATE: SEPTEMBER 22, 2003 SUBJECT: REQUEST BY SAN GABRIEL VALLEY MUNICIPAL WATER DISTRICT WHETHER THE CITY WOULD SUPPORT JURISDICTIONAL BOUNDARY RECONCILIATION RECOMMENDATION It is recommended that the Azusa Utility Board/City Council deliberate the issue as explained below and authorize staff to prepare a letter to express the decision by Azusa Utility Board/City Council to San Gabriel Valley Municipal Water District (the "District"). BACKGROUND I was recently contacted by the General Manager, Mr. Jim Frei, of the District regarding its jurisdictional boundaries of the City and the City's current boundaries. There might be an opportunity to reconcile the boundaries of the two jurisdictions as he put it. The District was formed in 1958. Azusa, Alhambra, Monterey Park, and Sierra Madre are four members of the District. The District issued long-term bonds to finance the acquisition of rights to the State Water Project. The District makes bond payments from tax levied on all properties within each city. Azusa's City boundaries today are much greater than they were in 1958, due to many annexations since then. However, the District has not been able to annex the same properties as the City has done. It is my understanding that the District has been in discussion with neighboring districts having taxing authority over those properties within the City but outside the District boundaries, and it appears there might be a willingness of the districts involved to "square off" their boundaries to align with the City's. aw --4 02Y9 1,ti -A , gA4026 S B111g• • m • dIIIi! 1! {�, __ _...... L U a, l,. .. _... _. ,... _ .. . . •-.CMI i �:.A �N. AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 22, 2003 SUBJECT: APPROVAL OF EMERGENCY REPAIRS TO WELL NO. 1 RECOMMENDATION It is recommended that the Azusa Utility Board/City Council declare an emergency and approve the repair to Well No. 1 by General Pump Company for the amount of $64,500. BACKGROUND Approximately six weeks ago, Well No. 1 at the Spreading Ground Wellfield experienced a severe reduction in water output. The pump was pulled from the ground by General Pump Company under their Blanket Purchase Order with the Water Division. Once the pump was pulled, it was discovered that the pump had fouled with some debris in the casing and that it had been damaged. Well No. 1 is the primary supply of water to Miller Brewing and had to be put back in operation as soon as possible. General Pump was instructed to proceed with the repairs as detailed in their cost breakdown dated August 21. The repairs have been completed as of the date of this Agenda Item. In the interim, the other wells at the Spreading Grounds were able to provide water to supply Miller Brewing. FISCAL IMPACT Funding for repairs will come out of the Capital Improvement budget. Prepared by: (4211). frd Chet F. Anderson, Assistant Director- Water Operations cfr-- — Attachment: ./[0.....7)1A.K– Reso Re Well No. 1.doc 023 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City Council of the City of Azusa at a regular meeting thereof held on the 22nd day of September, 2003. AYES: BOARD/COUNCIL MEMBERS: NOES: BOARD/COUNCIL MEMBERS: ABSENT: BOARD/COUNCIL MEMBERS: VERA MENDOZA, CITY CLERK 030 R BR Tour of San Juan Power Plant August 4 - 6 , 2003 Overview • Staff participated in a two-day tour sponsored by the Public Service Company of New Mexico (PNM) and SCPPA. • Other Visitors: City of Banning, Imperial Irrigation District and SCPPA Staff • Toured San Juan #3 Operations • Toured the adjacent underground coal mine operations • Had an in-depth meeting with plant senior management. qpfrojj1,/ 14/1. 064 Next Steps • Staff will work through SCPPA to formalized SCPPA's strategic thinking of major decisions facing Unit #3 • Staff will coordinate through SCPPA to commence discussions regarding the funding mechanisms for Unit #3 CIPS. • SCPPA will formulate positions and communicate them to PNM • A follow-up visit is currently scheduled for next April during Unit #3 scheduled maintenance to formalized the long term planning of Unit #3 refurbishment projects Concluding, the plant is a viable resource for the long term. 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HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 22, 2003 SUBJECT: FY 2002-2003 4th QUARTER WORK PLAN UPDATES RECOMMENDATION It is recommended that the Azusa Utility Board/City Council receive the attached work plan updates from Azusa Light &Water for review and comment. BACKGROUND Staff from different divisions of Azusa Light &Water provided work plan updates for the Utility Board's consideration and input. The updates cover the 4TH quarter of fiscal year 2002-03, from April 1, 2003 to June 30, 2003. The Board may provide input or comments regarding specific projects. FISCAL IMPACT There is no fiscal impact as a result of this report. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Steven Yang, Administrative Technician Z 03 Attachment: (1‘11161 WKPW 4th Qtr FY 02-03.doc (iCa077 Waste Management 10 DOC Beverage Container Recycling Program 10 Dump that Junk Month 10 Green Waste Barrel Distribution Program 11 MRF Program 11 Used Oil Recycling Block Grant Program 11 Water Operations 12 12-inch crossing Dalton Wash 12 12-inch pipeline in 6th St.- Virginia to Cerritos Ave. 12 16-inch pipeline in Baseline from Rockvale to Citrus 12 1MG Mountain Cove Reservoir 12 20-inch and 16-inch pipeline for Mountain Cove 13 20-inch pipe installation- Lakeview Terrace to 10th St and Rockvale Boosters 13 30-inch pipeline in Dalton from Sierra Madre to 5th 13 Distribution Main Upgrades 13 Install radio controls for SCADA 13 Ph 1 Heck Booster Pump Station 14 Pipeline from Citrus & Foothill to Barranca & Alosta 14 Purchase replacement vehicles 14 Rehabilitation of South Reservoir 14 Repairs to Sierra Madre Reservoir 15 Rockvale booster upgrade 15 Spreading ground wells 15 Treatment plant sed basin and sludge lagoon design and construction 15 Well 2 & 3 discharge upgrade 15 ii - 079 Work Name: Measure L Communications Plan Description: Develop a comprehensive communication plan for information relating to Measure L. Work Type: Project Team Leader: Martin Quiroz Team Member: Quarter Ending Update: The communications plan for the Bond Measure"L" has morphed into a communications plan for the building of a new library for the City. It has included: a new highly graphic application,updated video production, communications strategy for getting out the needs for a new library to elected officials,State Bond Library Construction Panel and the media. On-going until the November Library Construction selection is made. Division: Customer Service Work Name: Automated Meter Reading (AMR) Description: To improve customer service and increase efficiency,radio read meters will be installed on non-access or bad dog accounts. Use of AMR meters will ensure that all reads will be obtained for billing in less time than is presently possible. Appointments with customers and repeat trips to obtain reads will be eliminated. Work Type: Program Team Leader: Derek McFann Team Member: Sallie Acero Quarter Ending Update: 748 AMR meters installed on hard-to-read meters and new housing tract homes to date. While accounts continually are added to the list of hard-to-read meters for change outs,94 are currently on the list. Work Name: Improve Customer Communications Description: Update residential service booklet,including modernizing graphics. Continuously update information on Light&Water's web site. Work Type: Project Team Leader: Karen Vanca Team Member: Quarter Ending Update: Complete. Work Name: Improve Customer Satisfaction Description: Determine service level baseline. Improve customer satisfaction by benchmarking, setting performance targets,training,monitoring and giving employee feedback in key customer contact areas. Identify opportunities for office and field employees to provide additional customer services. This is a multiple-year project and ongoing measurement of results. Work Type: Project Team Leader: Karen Vanca 2 081 Description: Preventive maintenance and replacement of existing protective devices at Azusa substation needed to improve reliability and continuity of service. Work Type: Project Team Leader: Federico Langit Team Member: Quarter Ending Update: Complete construction of pilot project and prepare for testing. Work Name: Engineer,Procure, Construct (EPC) New Substation + Distribution System Description: The addition of the new substation south of the 210 freeway adds flexibility of operation and system reliability. Project is being carried over from fiscal year 2002- 03. A budget of$4.8 million is to be carried for the construction which will start on FY 2002-2003,culminating on FY 2003-2004. Work Type: Project Team Leader: Federico Langit Team Member: Quarter Ending Update: Award EPC contract to Black&Veatch Construction Inc. Work Name: Infrared Inspection Description: Annual infrared inspection of 12 kV Overhead lines with infrared equipment and camera to locate hot spots on the electric system,so that preventative maintenance can be preformed. This proactive maintenance helps prevent customer outages. Work Type: Project Team Leader: David Ramirez Team Member: Dan Kjar Quarter Ending Update: Pro-Line completed the infrared inspection(survey)of Azusa overhead 12-kv overhead power line circuits and Azusa's portion of the Azusa Substation the week of April 7-10,2003. During the inspection three problems were identified and a work order was issued for our field crews to make repairs,the repairs were completed by the end of May 2003. Work Name: Owl/Hilltop Distribution Circuit Line Extensions (CIP) Description: Project Phase II. Hilltop Circuit will be routed along San Gabriel Ave from Sierra Madre north to Canyon Vista to provide a loop feed with the Owl circuit.The installation of conduit and underground structures are part of San Gabriel Avenue medium project. Work Type: Project Team Leader: David Ramirez Team Member: Federico Langit Quarter Ending Update: The contractor has completed installing the electrical conduit and vaults on San Gabriel Ave and is now working 4 083 Team Leader: Cary Kalscheuer Team Member: Joe Hsu Federico Langit Quarter Ending Update: Presentations were made to staff at Library on April 28,2003,and to the Utility Board. Consultant recommended that the City not move forward with wired fiber network as it is not financially viable. Utility Board directed staff to evaluate wireless business opportunity using Wi Fi technology. The telecom feasibility study as described in this work plan updated is completed. Work Name: Wireless Telecom Service Evaluation Description: Evaluate use wireless or Wi Fi technology as a means of providing low cost internet and other services to Azusa residents and businesses. Work Type: Project Team Leader: Cary Kalscheuer Team Member: Joe Hsu Federico Langit Quarter Ending Update: Project began April 28,2003. Report will be provided by RW Beck prior to end of September 2003. Work Name: Work Order System Review Description: Work orders are issued to have work done by field personnel. Work orders communicate what is to be done,what equipment and materials are needed to do the job,and authorize field personnel to commence work. Work orders also are used to track costs for billing and accounting purposes. This is a review of the work management process,which is largely a manual process,to see how it can be made more efficient,and possibly automated,for billing,accounting and management purposes. Work Type: Project Team Leader: Cary Kalscheuer Team Member: Steven Yang Joe Hsu Kevin Morningstar Ann Graf Feliza Cawte Hien Vuong Dan Kjar Federico Langit David Ramirez Quarter Ending Update: Features and functions for work order or work management system were developed and forwarded to Kevin Morningstar for inclusion of CIS RFP. RFP was finalized and released. Rather than doing a demo of Bi Tech work order module,screen shots of the Bi Tech system were circulated to Assistant Directors of Utility for comment and input on whether they wanted to proceed with a demonstration. Bi Tech's module was considered outdated and it was decided not to do a demo. 6 085 system(Multivantage),replacement of obsolete hardware,addition of LAN • connectivity,VOIP capability,Voice Announcement over LAN capability,and replacement of Azusa Light&Water's CMS system with Avaya BCMS. Joint project between citywide MIS staff. Work Type: Project Team Leader: Kevin Morningstar Team Member: Mike Guadagnino Lysell Wofford Ann Graf Quarter Ending Update: Hardware and software were installed in April. All items are currently functional and MIS staff is working on taking advantage of the new functionality. First priority is to update L&W Customer Service Auto Attendant. Division: [Power Resource Work Name: Contract Negotiations Description: The following contracts will need to be negotiated by the end of second quarter: (1) Scheduling Services Agreement with Salt River Project to provide the after-the-hour power resource scheduling services;and(2)An interconnection service agreement with Edison to specify the terms and conditions of the interconnection of the new substation with Edison's system. Work Type: Project Team Leader: Bob Tang Team Member: Tim Vuong Richard Tones Quarter Ending Update: (1)The Scheduling Service Agreement with Salt River Project was successfully extended for two additional years commencing July 1,2003 through June 30,2005 under the same terms and conditions and at a cost of $2,100/month. (2)An Engineering and Design Agreement was executed for the new substation as of late May,2003 which will allow Edison to commence engineering,design,procurement of materials,and the construction activities while the City and Edison continue negotiations of a long term interconnection agreement. Work Name: Renewable Resource Procurement Description: As the state of California continues to consider the state's long term renewable energy strategy(perhaps establishing a renewable energy portfolio standard),the department will need to monitor and devise a strategy to face such potential challenges in the near future. Initial efforts will be taken to identify long-term sustainable funding mechanisms of potential renewable energy procurement(either due to legislative mandate or voluntary). Work Type: Program Team Leader: Bob Tang Team Member: Tim Vuong Richard Tones Quarter Ending Update: 8 087 Work Type: Project Team Leader: Bob Tang Team Member: Tim Vuong Richard Tones Quarter Ending Update: Electric retail rate adjustment was successfully completed and implemented as of July 1,2003. Work Name: San Juan Unit#3 Performance Mitigation Description: As demonstrated in the past year,the department's ability to provide reliable low-cost electricity is intricately tied to the performance of San Juan Unit#3. Planned and unplanned outages of the unit have and will continue to cause adverse impacts to our objectives. The following tasks will be undertaken to mitigate to the maximum extent possible the San Juan contingencies: Al -Explore long term asset exchange arrangements with third parties A2-Explore asset divestiture arrangements A3-Explore joint reserve sharing arrangements Work Type: Project Team Leader: Bob Tang Team Member: Tim Vuong Richard Torres Quarter Ending Update: Staff visited the San Juan power plant including the adjacent underground coal mining operations in early August. Staff has commenced and is continuing to work through SCPPA to strategize the short term and long term strategic issues associated with the San Juan Power Plant in general and Unit#3 in particular.Major decisions regarding plant refurbishment will be forthcoming in the next 12 to 24 months.Staff intends to actively participate with SCPPA in the decision making process.The activities on this issue will continue for the foreseeable future. Division: (Waste Management Work Name: DOC Beverage Container Recycling Program Description: Purchase compartmentalized recycling containers and promote their use by schools. Aluminum cans,plastic bottles,newspaper and mixed paper are the four commodities targeted through this program. Proceeds from recovery of these commodities will go to host school. Bins will be serviced by Athens Services. Work Type: Program Team Leader: Cary Kalscheuer Team Member: Quarter Ending Update: 5.56 tons were recovered by Athens from 3 schools. Athens expressed concern about storing 6 bins for schools while City waited for School District to sign contracts. School District permitted, and City agreed to provide, delivery of bins to 6 schools. Work Name: Dump that Junk Month Description: Sponsor and promote spring cleaning activities during the month of April,including throwing away junk at curbside;cleaning alleys;towing away old cars;throwing away 10 089 • 3,615 gallons of used oil collected by 6 centers; 129 used oil drain pans distributed by centers;3 ads ran during this quarter in Azusa Herald. Division: Water Operations Work Name: 12-inch crossing Dalton Wash Description: 12-inch waterline crossing Big Dalton Wash. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project has been bid and a contractor selected.However,due to contractor scheduling conflicts the start of project has been delayed to 1st quarter of FY 2003-2004. Work Name: 12-inch pipeline in 6th St.- Virginia to Cerritos Ave. Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project put on hold pending review of the system hydraulic model. Work Name: 16-inch pipeline in Baseline from Rockvale to Citrus Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project on hold to end of paving cut moratorium. Work Name: 1MG Mountain Cove Reservoir Description: Installation of a reservoir at the Mountain Cove development. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project in operation.Reimbursement agreement with Azusa Associates pending. 12 091 Team Member: Quarter Ending Update: Installation of equipment ordered for this FY is complete.SCADA project will continue next FY. Work Name: Ph 1 Heck Booster Pump Station Description: Installation of a booster pump station to boost water to the reservoir at the Mountain Cove development. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Booster station on operation.Reimbursement agreement with developer is pending. Work Name: Pipeline from Citrus & Foothill to Barranca & Alosta Description: Installation of 12-inch pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project bid and a contractor accepted.Project will begin and will be completed the first and second quarters of FY 2003-2004. Work Name: Purchase replacement vehicles Description: Replace vehicles that have reached an advanced age and advanced state of wear. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Completed third quarter. Work Name: Rehabilitation of South Reservoir Description: South Reservoir will be analyzed by a structural engineer to determine if the reservoir is worth renovating or if it should be torn down and replaced. Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Consultant who was selected in January indicated they would do the work.However,the consultant was again unresponsive.RFPs will be issued second quarter of FY 2003-2004. 14 093 Work Type: Project Team Leader: Chet Anderson Team Member: Quarter Ending Update: Northern Transmission Line is in operation. The upgrades will occur in FY 2003-2004. 16 095 • -4-he-w? ,bole11(t.-6e-s lir MOUNTAIN TIMES , Pat 4-1 MOUNTAIN COVE, CALIFORNIA EST. 2002 Volume Two • September 2003 • Please Recycle Ir Please send your articles&bulletins to edito gmtncove.eom EDITORIAi. LOCAL NEWS OUR SECOND YEAR... HOA MEETINGS It's official! We've reached the first issue of our The next HOA meeting is the Annual rneeting to be second year. The new web site is going strong at held on Monday, October 6th at 6pm in the Lodge. httn://www.rruncove.com and the dust is beginning The following meeting is November 3rd at 6pm. to settle on the last of the Copperwoods. WATER TAX FRUSTRATION! - Mountain Cove is still an awesome place to live, and we continue to meet great new neighbors, by Lester Kau celebrate birthdays and holidays together, and keep Many residents have expressed frustration over the an eye out for one another. Somehow we've Customer Charge on our water bills. Here are the managed to create not just a cluster of homes in the concerns that some of the residents have told us: canyon, but a real community. Every time I talk to new residents,they are so excited and astounded at 1• It is an unreasonable and unfair commercial tax their fortune for managing to find Mountain Cove. that was never disclosed when the homes were purchased. We're nestled in the beautiful San Gabriel Foothills, 2. The city says that the charge has to do with how above Azusa, but not separate from it. There are concerns about local schools, political practices, large the water main is on your home. But only taxes and so on,so it certainly isn't paradise.But as some of the homes with larger mains are being major tax payers and concerned citizens from billed the additional charges. It does not make any professional backgrounds of every sort, we have a sense which homes are actually being charged more concerted responsibility to our families, neighbors than others. Some residents have stated that you can and fellow residents of Azusa. be on the same street with the same home size, and be charged a different rate. I think it's important that we keep this community feeling strong, and we should do everything in our 3. The Customer Charge rates of some homes were power to help it prosper. Mountain Cove has a increased from $54.93 per month to $57.32 per chance to not just be a secluded neighborhood in the month. Does this mean they can increase fees canyon,but a vocal and powerful part of the City of whenever they feel like it? Azusa. It's high time our city stepped into the 21' century, and I think Mountain Cove might just be It is time for the concerned Mountain Cove residents the place to start. , to get together and bring this issue up at the next Azusa City Council Meeting. Residents should ask MW.Martin, the Council to reduce these rates to the same rates Editor-in-Chief other Mountain Cove residents are paying. Those editort mtncove.com who have paid excessive amounts should also htrp:i/www.nttncove.corn • ...receive either full refunds or credit towards future water bills. The next City Council meeting will be Monday, September 15, 2003, 6:30-8pm, at the QUOTE OF THE MONTH Civic Auditorium in downtown Azusa. It's your "A lie gets halfway around the world before the money.If you are paying the higher amounts,please truth has a chance to get its pants on"-Sir Winston make sure to come to the meeting. Churchill WATER RATE SCHEDULE The following schedule of rates is fixed and established as the rates to be collected by Azusa Light & Water for supplying water to its customers within the certificated service territories of the City of Azusa: A. METER SERVICE CHARGE: The basic monthly meter service charge for water supplied to domestic, commercial, industrial, and municipal customers of Azusa Light&Water shall be as follows: Service Size Monthly Charge 5/8"—3/4" $11.22 1" 19.52 1.5" 35.85 2" 57.32 3" 109.21 4" 176.48 6" 310.92 8" 449.78 10" 588.79 12" 735.83 EN.ECTIVE 7/28/2003 79 Water Rate Schedule (continued) B. COMMODITY CHARGE: The commodity charge is measured in increments of cubic feet. One cubic foot is 7.48 gallons of water. Each unit of water is billed as 100 cubic feet or 748 gallons. One hundred cubic feet is commonly referred to as CCF. Each meter size is allotted a quantity of water considered to be average for that size of service, units in excess of that allotment represents a heavier use of the facilities of the water system, and therefore are billed according to the commodity rate schedule. Service Size Units Rate (per CCF) 5/8"—3/4"— 1" 0-17 ccf $0.798 > 17 ccf $1.26 1.5"--2" 0-50 ccf $0.798 >50 ccf $1.26 3"-4" 0-200 ccf $0.798 >200 ccf $1.26 6"— 12" 0-600 ccf $0.798 >600 ccf $1.26 Golf Course $0.98 C. MINIMUM CHARGE: The minimum charge shall be the monthly meter service charge. D. FIRE SERVICE CHARGE: Fire service connections are provided for fire protection only. If a fire service is used for any purpose other than for fire fighting, a minimum charge of$56.69 shall be assessed in addition to the commodity charge for the actual amount of water used. If a fire service customer uses a fire service for other than emergency fire fighting repeatedly, the customer, upon notice of the water utility manager, may be disconnected from service for violation of the intended use of a fire service connection. The Monthly Charge for such service shall be$7.94 per pipe diameter-inch. E1' HCTIVE 7/24/2003 80