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Home My WebLink AboutAgenda Regular UB 10-23-2017 AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AZUSA LIGHT & WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 OCTOBER 23, 2017 6:30 P.M. AZUSA UTILITY BOARD URIEL E. MACIAS CHAIRPERSON ROBERT GONZALES VICE CHAIRPERSON JOSEPH R. ROCHA BOARD MEMBER EDWARD J. ALVAREZ BOARD MEMBER ANGEL A. CARRILLO BOARD MEMBER 6:30 p.m. Convene to Regular Meeting of the Azusa Utility Board. • Call to Order • Pledge to the Flag • Roll Call A. PUBLIC PARTICIPATION 1. (Person/Group shall be allowed to speak without interruption up to five (5) minutes maximum time, subject to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker’s questions or comments shall be handled after the speaker has completed his/her comments. Public Participation will be limited to sixty (60) minutes time.) B. UTILITIES DIRECTOR COMMENTS C. UTILITY BOARD MEMBER COMMENTS D. CONSENT CALENDAR The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under SPECIAL CALL ITEMS. 1. Minutes. Recommendation: Approve minutes of meeting on September 25 as written. 2. Approve Water Supply Agreement with Meritage Homes of California, Inc. Recommendation: 1) Approve a Water Supply Agreement with Meritage Homes of California, Inc. 3. Assignment of Puente Hills Landfill Gas-To-Energy Project to City of Banning. Recommendation: 1) Authorize the Director of Utilities to undertake definite steps to terminate ALW’s Puente Hills Power Sales Agreement with the Southern California Public Power Authority (SCPPA) and complete the reassignment of ALW’s 1 MW share of the Puente Hills Project contract to the City of Banning, including executing and processing any required documentation in a form acceptable to the City Attorney. 4. Exchange of Renewable Project Participation Shares with the City of Colton. Recommendation: 1) Authorize the Director of Utilities to execute and administer the Astoria 2 and DSR2 Project Share Exchange Agreement with the City of Colton, including preparation and execution of related documents, as necessary, in a form acceptable to the City Attorney. 5. Approve Purchase of Livingwise® Conservation Education Program from Resource Action Programs, LLC. Recommendations: 1) Approve the purchase of a the annual turnkey interactive LivingWise® Conservation Education Program from Resource Action Programs, LLC for Azusa fifth grade students at a cost not to exceed $30,000 through a Southern California Public Power Authority (SCPPA) joint purchase agreement pursuant to AMC Sections 2-520(b) “sole source” and 2-521(a) “cooperative and piggyback purchases”; and 2) Authorize the Director of Utilities to execute the associated SCPPA Task Order in a form acceptable to the City Attorney. 6. Approve the Issuance of Purchase Order to Survalent Technology Corporation to Upgrade Electric “SCADA” Software. Recommendation: 1) Approve issuance of a Purchase Order to Survalent Technology Corporation in an amount not to exceed $41,940.00 to acquire the new software upgrade for the electric SCADA system. E. SCHEDULED ITEMS 1. Approval of Advanced Metering Infrastructure Agreement with Sensus USA and Other Related Documents/Actions. Recommendation: 1) Approve the following items and authorize Mayor to sign documents, subject to approval by the City Attorney of any minor changes: a) Master Agreement with Sensus USA, including Exhibits A-K b) Support Services Agreement with N. Harris Computing Corporation c) AMI Integration Proposal by Systems & Software (sole source exemption) F. STAFF REPORTS/COMMUNICATIONS 1. Energy Star Appliance Purchase and Weatherization Incentive Program – Bill Credit Implementation 2. Azusa Light & Water to Receive APPA’s 2017 Excellence In Public Power Communications Award 3. Federal Legislative Update G. CLOSED SESSION 1. None. 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.” I, Stephanie Urich, Senior Administrative Technician, declare that I am an employee of the City of Azusa. On October 19, 2017 at 4:30 p.m. the agenda for the Utility Board regular meeting on Monday, October 23, 2017, was posted in the City Clerk’s Office, 213 E. Foothill Boulevard; the City Library, 729 N. Dalton Avenue; Azusa Light & Water, 729 N. Azusa Avenue; and the City’s webpage at www.ci.azusa.ca.us. I declare under penalty of perjury that the foregoing is true and correct. __________________________________ Senior Administrative Technician Azusa Light & Water Utility Board Meeting 4.1 October 23, 2017 Chair Uriel Macias AZUSA Utilities Director Comments 2 AZUSA L I G H 1 & W A i E H Utility Board Comments 3 AZUSA Consent Agenda • September 25, 2017 Minutes • Water Supply Agreement with Meritage Homes (Covina) • Puente Hills Project Assignment to City of Banning • Renewable Project Exchange with City of Colton • 2018 "Livingwise" Conservation Education Program ($30K) • SCADA Software Upgrade from Survalent ($42,940) 4 AZUSA ., . . ., Utility Modernization Project OS Customer sarvlwTh.,mr ., glwm.1 Building/ Provid.r -- Commercial 04 1,„„d4n9 AulanNlon Mme.. 111) eau 10.--- CtlrnPu. 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ONYYIU6ram Non. lu.M� 6.t.w.y Azusa Utility Board October 23 2017 5 AZUSA L I G H 1 R WAT EH AMI Project • Advanced Metering Infrastructure (AMI ) • Project involves installation of: — "FlexNet" radio communications network with 3 basestations and network backhaul to out-of-state data center(s) — Software: MDMS, Smartworks Compass, and Customer Web Portal, and Utility Billing System integration — New (or retrofitted) water and electric meters 6 AZUSA Operational Benefits • Early Operational Benefits include : — Automation of meter reading, check reads, remote service turn-on and off, leak detection and notification, theft detection, high bill analysis — Near real-time customer usage information and analysis — Transformer loading, outage mapping, SCADA interface and eventually distribution system automation 7 AZUSA Background • Through a competitive process, Sensus USA was selected as lowest cost qualified bidder • Staff conducted lengthy due diligence review of vendor's proposal and experience • Following a business case analysis, a "turnkey" Master Agreement was developed with Sensus • AMI Project will modernize operations management of the water and electric utilities by providing staff with new automated capabilities to perform various functions more quickly/accurately • Enhanced capabilities will result in some services being provided faster to customers at a lower overall cost (including less truck rolls) 8 AZUSA LIGHI & WAIEH Key Roles • Sensus USA — Prime contractor who manages subcontractor services — Install and maintain licensed wireless network, host MDMS, supply water/electric meters • Harris — Install, configure and manage MDMS — Ensure integration between MDMS and CIS • UPA — Installation of meters and integration with MDMS • Systems & Software — Modify/configure CIS to accept AMI system billing 00400., information, etc. 9 AZUSA LGH r & WAI ER Phases Phase Description 1 "Proof of Concept" (12 months) 2 Full Deployment (18-24 months) 3 Ancillary Functionality and Services 4 Ongoing Operations (10 years) 10 AZUSA UGH! & WAT ER Phase 1 -- Pilot • Installation by Sensus of FlexNet AMI communications network and related software • Installation by ALW of 55 electric and 77 water meters including 2 electric T-O-U customers • Installation by Harris of MDMS, Smartworks Compass, and CustomerConnect consumer portal • CIS integration work by S&S and Harris • ALW performs "FAT" — Functional Acceptance Testing • Phase 2 will begin upon satisfactory completion of FAT • Phase 1 will last about one year 11 AZUSA GH I & W A ? E H Phase 2 - Full Deployment • Meter installation contractor (UPA) will begin installing new and/or retrofit meters - -17,000 electric and -v23,000 water meters • ALW will replace remaining electric T-O-U meters (-40) early in this phase • When all meters are installed , ALW will perform SAT - System Acceptance Testing • Managers will work with field staff to create new job specifications and training in line with July 24 transition plan presented to Utility Board • Phase 2 will last 18 to 24 months 12 AZUSA l I GH I & WAIEH Phase 3 Ancillary Services • Phase 3 — for any incomplete work in Phase 1 that parties agree to defer • Potential system functions/integrations that may be completed during this phase include: — Various reports, i.e. water loss notification, transformer loading, theft detections — Outage management and mapping module — SCADA integration • Phase 3, if necessary, will be concurrent with Phase 2 13 AZUSA t , , }„ & W A i H Phase 4 Ongoing Services • This phase begins following the full deployment of AMI meters and successful Functional Acceptance Tests • Sensus will provide Network as a Service (NaaS), Software as a Service, and Hosting Services • Harris will provide ongoing support for the MDMS under contract with City (- 1 0% savings) • Phase 4 (and related agreements) will extend for ten years unless terminated earlier or extended • Contract provides Roadmap for future administrators to exercise certain options to control costs and services „ n 14 AZUSA LIGHT & WAIEH Other Items • Staff plans to solicit proposals from 3rd parties to conduct functional acceptance testing (FAT) • Prior to Phase 2, staff will seek proposals from water/electrical contractors to perform work that is incidental to large-scale meter replacements • AMI Project is a major undertaking for ALW and will involve all ALW divisions — Staff will work with HR/IT/CM to upgrade and fill an open Customer Service Division technology applications position 15 AZUSA • ‘ ., . AMI System Overview Azusa Wit water ADWAIDM Datafksw and Integration overview ....r._,„„i A, 104.00.1.... 0 *. 51[.o ' 1 010011101071111012 NM.Nowa.iFEY l+)`" UM vim. + 404040 ,ff c amicmac.cte:. of c.ua.r. / rew..r.4,4044 4 J6 ' ♦"Njalm N1 lr mY14.Qtt 1004 •r 13)044$ .1,m4440 r..�....4: •m44 444 ♦ '\ Umtav4.Woeslaws 040'x" pq�My w.,i Or ewe la anal n.... &ma*tote CO0 M. 10. 0 ` ,\ --.�..............................«erre II,/MN b040 a- laroloca µµ�4 n {21 Qn44.4/4 C..MR Azusa o_Pan* alv 0 fiamelismat1122130-1121 Impona IIIMILIalLaIlla Lor_71iw ops rws _m ( 1 ti 16 AZUSA LIGH I & W a l E H Contract Safeguards • Phase 1 safeguards include payment holdbacks, testing requirements, and termination provisions to limit the City's liability prior to Full Deployment • During Full Deployment, the contract only requires that ALW pay for meters and other equipment actually ordered and installed • The agreement includes Standard of Care provisions and various warranties to assure work is performed in a professional manner and equipment performs as promised • Ongoing service agreements include Service Level Agreements (SLAs) and/or performance requirements with penalties 17 AZUSA . . . . Contract Cost ,,,,,,,,....,„„,,,,,„., ,,,„,,, ,, '',,:'S'''',:i' `, ',.., i' ' , , ,,. Proof of C■ iJ' Ongoing Braid out ContractorDeployment Subtotal Services Total Phase 1 Phase 2 (Yrs 2-11) Sensus 380,572 6,966,597 7,347,169 1,941,163 9,288,332 Harris 504,541 504,541 520,641 1,025,182 S&S 130,900 130,900 130,900 FAT Tester TBD _ TED UPA* - 2,417,456 2,417,456 2,417,456 Subtotal 1,016,013 9,384,053 10,400,066 2,461,804 12,861,870 *Casts subject to changes in prevailing wage and cost of living adjustments. 18 AZUSA LIG N T & WAIER Utiliworks • UtiliWorks (UW) estimated project would be cashflow positive after Year 3 with investment break-even after Year 8 • The UW report was based on costs of about $12 .7 million over 11 years — Current project is about $12.9 million and now has a pending $1 million federal grant offset — so improved economics • Ongoing annual costs will range from about $225K in year 3 to $312K in year 11 19 AZUSA l G H ? & W AT EH Project Funding • Proposed funding sources for the project's capital costs are as follows: Source Amount (millions) Electric Fund $3.7 Water Fund $6.7 Total: $10.4 million Federal Grant -$1 Water Fund After Grant $5.7 • Staff believes it is important to approve project to secure Federal grant 20 AZUSA - • - - Summary • Although this project is financially beneficial over time, the project is deemed necessary in order to maintain infrastructure and operations according to industry practices • The "Proof of Concept" period (Phase 1 ) will enable ALW to test critical aspects of the project before moving to full deployment • The cost for Phases 1 & 2 ($10.4 million) will be funded by cash reserves and a $1 million Federal grant, over about 3 years • This modernization project will result in more efficient operations and faster services to customers „ , 21 AZUSA LIGH & VLA7 ER . . Recommendation • That the Utility Board approve for execution by Mayor: a) AMI Master Agreement with Sensus USA b) Support Services Agreement with N . Harris Computing Corporation c) AMI Integration proposal by Systems & Software 22 AZUSA . . Energy Star Rebate Program (F-I ) • ALW currently has two separate rebate forms: — Energy Star Appliance Purchase Program — Weatherization Incentive Program • Combining both into one rebate form is more efficient and convenient for customers • Presently program incentives are paid by check — 6 to 8 week lead time • The rebate program is now offering customers an option to receive their incentives through a bill credit — Can significantly reduce wait time • These two changes have been implemented by the authorityirow previouslygranted to UtilityDirector 411. 23 AZUSA sic; H & wA, EH . . . APPA Communications Award (F-2) • Staff is pleased to announce that ALW will receive APPA's "Excellence in Public Power" award for 2017 — For utilities with revenues of up to $75 million • Award recognizes efforts of public utilities to raise awareness of public power in the community — Through print/digital, web/social media and/or video communications • ALW's "Living Greener" booklet is being recognized • Second communications award received by ALW in recent years — AWWA's Public Communications award for ALW drought work • Award ceremony at APPA's Customer Connections Conference in Sacramento on November 5-8 24 AZUSA L I G H , & W A 7 E R • . Federal Legislative Update (F-3) • Through its SCPPA participation , ALW receives regular updates on Federal legislative and regular affairs affecting the electric industry • The October 2017 report is provided to the Utility Board as an agenda attachment. 25 AZUSA