HomeMy WebLinkAboutAgenda Regular UB 01-23-2017
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER
729 N. AZUSA AVENUE
AZUSA, CA 91702
JANUARY 23, 2017
6:30 P.M.
AZUSA UTILITY BOARD
ANGEL A. CARRILLO
CHAIRPERSON
URIEL E. MACIAS
VICE CHAIRPERSON
JOSEPH R. ROCHA
BOARD MEMBER
EDWARD J. ALVAREZ
BOARD MEMBER
ROBERT GONZALES
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 November 28 as written.
2. Approve Purchase of 2017 Ford Escape for Water Division Operations. Recommendations: 1)
Waive competitive purchase requirements pursuant to Section 2-521(a), Article VII, Chapter 2 of
the Azusa Municipal Code (Cooperative and Piggyback Purchasing); and 2) Approve the issuance
of a Purchase Order to Downtown Ford Sales of Sacramento, California in an amount not to exceed
$24,640.54 including sales tax and delivery charges, for one (1) 2017 Ford Escape vehicle.
3. Approve Professional Services Agreement with George E. Booth to Perform SCADA Water
Infrastructure and Radio Communication Upgrades. Recommendations: 1) Approve a
Professional Service Agreement (PSA) with George E. Booth Company, Inc. to perform SCADA
Water Infrastructure and Radio Communication upgrades in the amount of $199,500; and 2)
Authorize the Mayor to execute the PSA in a form acceptable to the City Attorney.
4. Approval of Notice of Completion for Water Capital Improvement Project W-280B,
Installation of 24-inch Blendline at the Water Treatment Plant. Recommendations: 1)
Approve Notice of Completion (NOC) for Project W-280B performed by T. A. Rivard; 2)
Authorize the Mayor to execute the NOC document on behalf of the City; and 3) Authorize the City
Clerk to submit the Notice of Completion for recordation to the Office of the County Recorder of
Los Angeles County, within ten days of the Utility Board approval, as required by Section 3093 of
the California Civil Code.
5. Approve Professional Services Agreement with Burns & McDonnell to Perform an Electric
Cost of Service Study. Recommendations: 1) Award a Professional Services Agreement (PSA)
to Burns & McDonnell to perform an electric cost of service study in an amount not to exceed
$34,600; and 2) Authorize the Mayor to execute the above PSA in a form acceptable to the City
Attorney.
E. SCHEDULED ITEMS
1. Modifications to Electric Schedule RL-Residential Service with Life-Support Devices.
Recommendation: 1) Adopt Resolution No. UB-15-2016 approving the Electric Rate “Schedule
RL – Residential Service with Life-Support Devices.”
A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF
AZUSA, CALIFORNIA, APPROVING REVISION OF ELECTRIC UTILITY RATE SCHEDULE
RL TITLED “RESIDENTIAL SERVICE WITH LIFE-SUPPORT DEVICES” TO SIMPLIFY THE
LIFE SUPPORT EQUIPMENT DISCOUNT PROGRAM
F. STAFF REPORTS/COMMUNICATIONS
1. Report on Procurement of Energy to Replace San Juan Energy after December 2017
2. Utility Capital Improvement Program Update
3. Water Supply Update (Verbal)
4. Update on 2016 Renewable Portfolio Standard Performance
5. Bureau of Reclamation Grant Application for Advanced Metering Infrastructure Project
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, Liza Sagun, Utilities Communications & Environmental Programs Specialist, declare that I am an
employee of the City of Azusa. On January 19, 2017 at 4:30 p.m. the agenda for the Utility Board regular
meeting on Monday, January 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.
__________________________________
Utilities Communications & Environmental
Programs Specialist, Azusa Light & Water
APPROVED
Date 7723 .-7 E-1
AZ USA
.CMI L k'.rIL
SCHEDULED ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF TT SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: JANUARY 23, 2017
SUBJECT: MODIFICATIONS TO ELECTRIC SHEDULE RL—RESIDENTIAL SERVICE
WITH LIFE-SUPPORT DEVICES
SUMMARY:
Azusa Light & Water (ALW) currently offers discounts for electricity used by residential
customers for medically necessary electrical equipment. This action modifies Schedule RL —
Residential Service with Life-Support Devices to simplify administration of this discount
program.
RECOMMENDATION:
Staff recommends that the Utility Board approve the following action:
1) Adopt Resolution No. UB-15-2016 approving Electric Rate "Schedule RL — Residential
Service with Life-Support Devices."
DISCUSSION:
ALW provides discounts for electricity used by residential customers for medically necessary
electrical equipment. Under Schedule RL, the electricity used for such equipment is billed at the
lower first tiered rate of 11.6 cents per kWh as opposed to the higher second tier rate of 14.87
cents per kWh. This savings equates to a 22% discount on electricity used for medical
equipment.
Today to qualify for service under Schedule RL, residential customers must obtain an annual
doctor's certification (note) to specify medical equipment needed and expected duration of daily
use. The equipment is then verified by a personal visit from a Utility Field Service
Representative to determine the power rating of equipment. The amount of energy (kWh) used
by the life-support equipment is then calculated and a discount kWh allowance developed.
The process of estimating the hours of medical equipment use requires significant Staff time and
resources, and is inherently variable and subjective. In order to eliminate such subjectivity and to
UB-70
Life-Support Equipment Discount Program Modifications
January 23, 2017
Page 2
simplify calculations, Staff recommends setting a fixed monthly amount of discounted electricity
which will be the same for all medical customers.
While the level of discounted electricity today varies based on needed medical equipment and
estimated equipment run time, the average allocation to each customer that qualifies for a
medical discount is approximately 150 kWh per month. Based on this average, it is proposed
that Schedule RL be modified to simply grant all medical equipment customers a 150 kWh
discount on electricity consumption such that they are allowed to consume at ALW's lower first
tiered rate of 11.6 cents per kWh.
This change will simplify the program and make it easier to understand and administer, and bring
it more in line with a more typical industry practice of allocating a flat fixed amount of monthly
kWh per qualified customer.
Today, residential customers must obtain a doctor's certification (note) to specify medical
equipment needed and duration of daily use in order to verify program qualification. Because
customers get better, pass away or move, a doctor's certification (and field verification) has
historically been usually repeated annually to recertify the customers receiving the discount.
As noted in Staff's report on this subject at the September 26 Utility Board meeting, the
recertification requirements have been revised to make the program more convenient for
customers. First, an updated doctor's note will only be required every two years for all qualified
customers except those with lifelong conditions. Customers with a lifelong medical condition(s)
will only need to obtain an updated doctor's note every 3 years. It should be noted that the utility
will retain the right to perform annual/periodic inspections of the qualified equipment to verify
initial and/or continued program eligibility.
FISCAL IMPACT:
Since the average level of discounted kWh for medical equipment customers will virtually
remain the same after approval of the recommendations herein, there should be little or no fiscal
direct impact, however efficiency improvements should be obtained through simplification of the
program's administration.
Prepared by: Reviewed and Approved:
Paul Reid George F. Morrow
Utility Programs Specialist Director of Utilities
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
Attachments:
1) Resolution No. UB-15-2016
2) Exhibit"A"—Schedule RL
UB-71
RESOLUTION NO.UB-I5-204.0
A RESOLUTION OF THE CITY COUNCIL AND UTILITY
BOARD OF THE CITY OF AZUSA, CALIFORNIA, APPROVING
REVISION OF ELECTRIC UTILITY RATE SCHEDULE RL
TITLED "RESIDENTIAL SERVICE WITH LIFE-SUPPORT
DEVICES" TO SIMPLIFY THE LIFE SUPPORT EQUIPMENT
DISCOUNT PROGRAM
WHEREAS,pursuant to Section 78-37 of the Azusa Municipal Code, the City Council is
authorized to adopt rules and regulations governing the operation and services provided by the
Azusa Light&Water Department;and
WHEREAS, the City of Azusa owns and operates an electric utility that provides
electricity to over 16,000 customers;and
WHEREAS, eligible residential customers may be allowed an additional lifeline
quantity of electricity for essential life-support devices as medically required for
specified serious illnesses; and
WHEREAS, provide electric rate discounts on electricity consumption used by
customers for medically necessary equipment.
NOW, THEREFORE, THE CITY COUNCIL AND UTILITY BOARD DO HEREBY
RESOLVE AS FOLLOWS:
1. That a modification of the Residential Life Support Equipment Discount
Program is hereby approved for the purpose of simplifying the program
administration.
2. That "Schedule RL — Residential Service with Life-Support Devices", attached
hereto as Exhibit A, is hereby adopted and included in Azusa Light& Water Rules
and Regulations.
3. That revised Schedule RL shall become effective on February 1,2017.
4. The City Clerk shall certify the adoption of this Resolution.
Joseph Romero Rocha,Mayor
ATTEST:
Jeffrey Lawrence Cornejo,Jr., City Clerk
UB-72
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss.
CITY OF AZUSA
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council/Utility
Board of the City of Azusa at a regular meeting of the Azusa Utility Board on the 23rd day of
January,2017.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Jeffrey Lawrence Cornejo,Jr., City Clerk
APPROVED AS TO FORM:
Jeffry F. Ferre
Best Best&Krieger,LLP
City Attorney
UB-73
SCHEDULE RL
RESIDENTIAL SERVICE WITH LIFE-SUPPORT DEVICES
This schedule is applicable to residential use of electricity for life-support devices in addition to
lighting, heating,cooking and power or combination thereof in a single-family accommodation.
Territory:
Within the electric service territory of the City of Azusa
Rate:
Minimum Charge: per meter per month $3.81
Energy Charge:
First 250 kWh, per kWh 11.60¢
Next 150 kWh,per kWh additional allowance
for Life Support Devices, per month 11.60¢
All excess kWh, per kWh 14.870
Special Conditions:
1. Each eligible residential customer may be allowed an additional lifeline allowance of
electricity, upon application to the utility where such customer provides certification that
full-time resident of the household regularly requires the use of an essential life-support
device which is defined below,including heating and/or cooling as medically required for
listed serious illnesses:
Aerosol tents IPPB machines Pressure pumps
Apnea monitors Iron lungs Quadriplegia
Compressors Kidney dialysis machines Respirators (all types)
Compromising Immune Life-threatening illnesses Scleroderma
System illnesses Motorized wheelchairs Suction machines
Heart monitors Multiple Sclerosis Ultrasonic nebulizers
Hemodialysis machines Paraplegia
Electrostatic nebulizers Pressure pads
Effective:02/01/2017
UB-74
Schedule RL (continued)
Procedure for Certification:
The Utility may require that:
a. The customer have a medical doctor or osteopath licensed to practice medicine in
the State of California provide the Utility with a letter, acceptable to the Utility,
describing the type of regularly required life-support device and the utilization
requirement in detail; or
b. County, State or Federal agencies, using an established notification letter to
electric utilities, provide the Utility with information relative to patients who
regularly require the use of a life-support device in the house.
Upon receipt of the above certification, the Utility shall within 30 days add the incremental
monthly lifeline usage allowance to the customer's first tier quantity. The Utility may require a
new or renewed application and/or certification,when needed in the opinion of the Utility.
2. Verification: Not more than one lifeline quantity will be allowed for each single-family
dwelling or accommodation on the premises. The number of single-family
accommodations on the premises and the existence of the specified end use equipment
required to obtain the lifeline allowance of electricity, as set forth on the applicable rate
schedules are subject to on-site verification by the Utility.
3. Termination of Use: Customers shall give the Utility notice of termination of use of
equipment or devices. In the event the Utility ascertains that the customer is not eligible
for such additional lifeline quantity, such customer may be re-billed retroactively as if no
such additional lifeline quantity had been allowed.
4. The above rates are subject to fuel cost adjustment.
5. A State Surcharge Tax may be added to the above rates.
Effective:02/01/2017
UB-75
Information Item
Presented /w,1 F-1
. AZUSA
t16NT\ WAIFF
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF " AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITI 1
DATE: JANUARY 23, 2017
SUBJECT: REPORT ON PROCUREMENT OF ENERGY TO REPLACE SAN JUAN
ENERGY AFTER DECEMBER 2017
SUMMARY:
In October 2016, Staff presented and the Utility Board approved the Azusa Integrated Resource
Plan (IRP). In the IRP, Staff recommended mid-term energy/capacity purchases to either fully or
partially fill-in the post San Juan energy gap in ALW's portfolio. This is an informational update on
the power purchases that Staff has initiated since approval of the IRP.
RECOMMENDATION:
Staff recommends that the Utility Board approve the following action:
1. Receive and file this informational report.
DISCUSSION:
In October 2016, Staff presented and the Utility Board approved the ALW Integrated Resource Plan
(IRP). In the IRP, Staff recommended mid-term energy/capacity purchases to either fully or
partially fill-in the post San Juan energy gap in ALW's portfolio. The Board approved issuance of
one or more "post-San Juan" RFP's for a period of 3 — 5 years beginning January 1, 2018 with a
provision that Staff would advise the Board before consummating such purchases.
In November 2016, Staff advised the Board of its intent to issue an RFP for a range of products to
partially replace San Juan generation and at the same time sought authority to transact within certain
predefined limits. Staff requested advance authority to consummate the potential transactions since
power is traded in a very dynamic market where counterparties (sellers) are typically unlikely to
maintain their price/quantity offers for longer than two hours (the more volatile the market, the
shorter"price hold"time).
UB-76
Post San Juan Energy Purchases
January 23, 2017 •
Page 2
The power would be "firm physical power" (carrying both energy and capacity) imported at the
Palo Verde point of grid interconnection. The purchase amount could vary by quarter and by off/on
time period but would not exceed 15 MW at any time. Staff estimated the cost of any year's
purchase would not exceed $3 million for the range of proposed power products.
Accordingly, in November Staff issued a targeted RFP to nine (9) potential counterparties of which
five (5) responded with competitive offers by the due time and date -- 10 AM on November 30,
2016. The submitted offers needed to be held by the potential sellers for at least two (2) hours.
Based on lowest bid price (and load curve fit analysis as provided previously to the Utility Board),
Staff selected the following four (4) offers from Citigroup Energy, Inc. for a three calendar year
period—2018, 2019, and 2020:
Annual Load Shape (MW)
CY Profile
Q1 Q2 Q3 Q4
ON- OFF- ON- OFF- ON- OFF- ON- OFF-
PK PK PK PK PK PK PK PK
PRODUCTI 10 15
PRODUCT2 10 _
PRODUCT3 15 15
PRODUCT4 10 15
Annual Volumes (MWH)and Prices ($/MWH)
MWH Rate Total
PRODUCTI 79,115 28.50 $ 2,254,777.50
PRODUCT2 28,560 20.75 $ 592,620.00
PRODUCT3 99,360 31.60 $ 3,139,776.00
PRODUCT4 80,925 29.00 $ 2,346,825.00
$ 8,333,998.50
Total Annual Cost($/year)
CY TOTAL
2018 $ 2,773,819.50
2019 $ 2,776,099.50
2020 $ 2,784,079.50
$ 8,333,998.50
UB-77
Post San Juan Energy Purchases
January 23, 2017
Page 2
For comparison purposes,the average cost of San Juan Unit 3 energy during the last three years was
$73.74/MWH. The average price of the energy purchased by ALW to replace San Juan energy for
the future period of 2018 through 2020 is $28.94/MWH. This comparison results in a cost
differential of about 60%. From a dollar standpoint, this equals to a reduced cost of about $13.8
million over the 3 year period (or—$4.5 million per year).
Additionally, Staff continues to monitor forward markets with an eventual goal of purchasing "post
San Juan energy" for the remaining 2 years of the 5 year term authorized by the Utility Board (2021
and 2022). Factors to consider ALW's future energy/capacity needs; the potential CAISO
expansion; and increased mandates for renewable energy, distributed generation, energy storage,
and post 2020 "cap & trade"GHG requirements.
FISCAL IMPACT:
The estimated cost of any year's power purchase is less than $3 million as previously authorized by
the Utility Board. Sufficient funds will budgeted in ALW's power supply operating budget for the
requisite years.
Prepared by: Reviewed and Approved:
Yarek Lehr,P.E. George F. Morrow
Assistant Director of Resource Management Director of Utilities
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
UB-78
Information Item F-2
Presented
AZUSA
MU ► warry
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF TH SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: JANUARY 23, 2017
SUBJECT: UTILITY CAPITAL IMPROVEMENT PROGRAM UPDATE
SUMMARY:
Azusa Light & Water currently has sixteen approved capital improvement projects. The projects
are at varying stages of completion. Each is important to the long-term operation and
performance of the electric and water systems.
RECOMMENDATION:
Staff recommends that the Utility Board approve the following action:
1) Receive and file Staffs Capital Improvement Program update.
DISCUSSION:
Azusa Light & Water's (ALW) Fiscal Year 2016-2017 Capital Improvement Program includes
sixteen projects—ten are within the Water Division, five are in the Electric Division and two are
managed by the Customer Service Division. The following is a brief summary of the status of
these projects:
Water Division
1. Water Main Replacements—This year ALW will replace the water main on Azusa Avenue
from First to Third Street and on First Street from Azusa Ave west to the I-210 freeway
overpass to reduce main leaks and improve service reliability. The budget allocation is
$1,100,000. The Utility Board authorized advertisement of the project. Engineering Plans
and Specifications are 90%complete.
UB-79
Capital Improvement Program Update
January 23, 2017
Page t
2. SGVMWD Direct Connection to WTP — This year ALW will construct a strategic
connection between the Water Treatment Plant and the San Gabriel Valley Municipal Water
District raw water supply pipeline in Azusa. The budget allocation is $650,000. The 5,000
pound B-10 Bailey Sleeve Valve required by SGVMWD was procured and delivered to the
Water Treatment Plant in December, 2016. Engineering Plans and Specifications are 90%
complete.
3. Water SCADA Infrastructure — This project involves upgrade of the Water SCADA
infrastructure and radio communication system. The budget allocation is $200,000. Staff is
recommending award of the Professional Service Agreement contract at the January 2017
Utility Board meeting. If approved, the project will commence soon thereafter.
4. Reservoir Rehabilitation Program — ALW owns thirteen reservoirs that require regular
interior and exterior improvements/maintenance. Near-term plans are to address overflow
repairs, cathodic protection, internal recoating, screen replacements, new ladders, valve
coating, and pipeline improvements. The budget allocation is$200,000. These activities are
currently in the planning stage.
5. Engineering Water Replacement Plans, Specifications & Engineer's Estimate (PS&E)—
This project entails hiring an engineering consultant/firm to prepare various Water
Replacements & Infrastructure Plans throughout the water system. The budget allocation is
$300,000. Staff is currently preparing the request for proposals and it is 50%complete.
6. Water Transmission Lining Project Cypress — This project involves lining the existing
transmission water pipeline on Cypress and along the Azusa Avenue corridor from Arrow
Hwy to Cypress and installing new valves to localize impact and isolate, improve flow and
pressure. The budget allocation is $850,000. The project is currently in the planning stage.
7. Blending Pipe to Heck Reservoir — The contractor has installed 425 linear feet of 24-inch
CMLC steel pipeline and two 24-inch butterfly valves. The budget allocation is $250,000.
Staff is recommending notice of completion at the January 2017 Utility Board. The project is
complete and on-line. The total project cost was$203,150.
8. Water Asset Management Tool — This project involves implementing Sedaru software to
enhance water production reporting and improve water resource analysis capabilities of the
Water Division. The budget allocation is $50,000. The Utility Board awarded a Professional
Service Agreement for$44,945. The contract was executed by all parties in January 2017 and
work is currently underway.
9. Well Rehabilitation Program — This project entails making improvements at ALW's ten
water wells. The current priority is to test the retired Aspan for water quality and output to
see if it can be a viable main basin source of water supply. The budget allocation is$150,000.
Staff has obtained the necessary permits to test Aspan Well. In addition, Staff is
recommending that rehabilitation work begin on Well No. 1. The goal is to bring a contractor
agreement for this work for review/approval by the Utility Board in February 2017.
UB-80
Capital Improvement Program Update
January 23, 2017
Page 3
10. Water Treatment Plant Improvements — The Water Treatment Plant requires regular and
ongoing repairs, maintenance and improvements. The budget allocation is $100,000. The
first project will be to replace one of the air compressor used for the filtration process. Staff
received three quotes and is in the process of obtaining purchase approval. The cost of
replacing one air compressor is $15,230.
Electric Division
1. Underground Line Replacements & Extensions—During the past several summer periods,
Electric Division crews completed urgent repairs and underground cable replacements along
Point-O-Woods Drive, Hollis Avenue and Pebble Beach Lane. In addition, electric crews
completed multiple underground cable service line extensions at various street locations
within the Rosedale Subdivision in order to serve new homes built by developers.
2. Electric Substation Facility Improvements — This multi-year electric substation
improvement project will provide additional capacity at existing substations as may be
needed to reliably meet anticipated load growth in the coming ten year period. The initial
phase will consist of preliminary planning and design for transformer upgrades at ALW's
two substations. Staff will be soliciting proposals from engineering consulting firms to
prepare detailed plans needed to construct improvements.
3. Todd & 10`h Street Electric Line Extension/Equipment — In December 2016, Electric
Division crews began installing underground electric cable along Todd Avenue to serve the
new brewing facilities. New switches and large capacity service transformers were procured
and this electrical equipment is expected to be installed by second quarter of 2017 to support
operations by the new electric customer at this location.
4. Street Light Fixture LED Retrofit — This project involves removing old roadway lamps
along Foothill and Alosta and replacing them with new energy efficient LED lamps. Prior to
installing the new lamps, a photometric study is necessary to evaluate the proper level of
roadway illumination once new lamps are installed. The photometric study is underway.
Following completion of the study,ALW will procure new LED light fixtures and mast arms.
A contractor will be retained to install the new equipment.
5. Parking Lot 5`h & Azusa—Under this project, new parking spaces will be constructed at the
vacant land owned by ALW located at south east corner of 5th and Azusa. This project is
undertaken in cooperation with the Public Works Dept. and will also provide future electric
vehicle charging stations on designated parking spaces. The contractor retained by Public
Works will soon start with constructing improvements.
UB-81
Capital Improvement Program Update
January 23,2017
Page 4
Customer Service Division
1. Advanced Metering Infrastructure Project — This project will install a fixed wireless
network in the ALW service territory to read both water and electric meters A small number
of meters will be replaced in year 1 for testing purposes. Software to manage the network and
meter data will be also installed, configured and tested in Year I. In year 2, full meter
replacements will commence and continue for approximately 18 months. The budget for the
3 year capital project is currently estimated at $11.3 million. A $1 million grant application
was submitted on January 18, 2017 to the U. S. Bureau of reclamations WaterSMART
program. Detailed contract development with Sensus,the prime AMI vendor, continues.
2. Lobby Remodel Project — This project includes remodeling of the customer service lobby
and adjacent areas to improve customer service and security. A transparent security barrier
will be installed and additional service windows will be made available to serve customers.
The project includes conversion of a front office near the lobby into a customer meeting
room and remodeling of a storage room into a four workstation call center. Other
improvements include a kid's zone and cashiering counter upgrades. Final design and bid
package development is nearing completion.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action.
Prepared by: Reviewed and Approved:
Melissa Barbosa, PE George F. Morrow
Water System Engineer Director of Utilities
Federico Langit,Jr.
Asst. Director, Electric Operations
Cary Kalscheuer
Asst. Director, Customer Care & Solutions
Reviewed and Approved:
Troy L.Butzlaff, ICMA-CM
City Manager
Attachment:
1) Approved ALW CIP Program
UB-82
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UB-83
Information Item
Presented F-4
AZULIGNI i SA W47FI
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T. -ZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES�
DATE: JANUARY 23, 2017
SUBJECT: UPDATE ON 2016 RENEWABLE PORTFOLIO STANDARD PERFORMANCE
SUMMARY:
California law requires all electric utilities to serve a specific portion of their retail load with
renewable energy —called the Renewable Portfolio Standard (RPS). In 2016, Azusa Light & Water
(ALW) achieved the required 25% RPS through a combination of authorized RPS compliance
instruments. ALW was also able to "bank" excess renewable energy certificates (REC's) for use in
future years. This item is an information report on the Utility's compliance with RPS.
RECOMMENDATION:
Staff recommends that the Utility Board approve the following action:
1) Receive and file this informational report.
DISCUSSION:
In accordance with the Renewable Portfolio Standard contained in Senate Bill X1 2 (SBX1 2) and
corresponding regulations promulgated by the California Energy Commission (CEC), all electric
load serving entities are required to procure specific annual volumes of renewable energy and
products.
The RPS procurement requirements started in 2011 and are mandated as follows:
Year(s) 2011-15 2016 2017 2018 2019 2020-23 2024-26 2027-29 2030
RPS 20% 25% 27% 29% 31% 33% 40% 45% 50%
Based on current estimates, in 2016 ALW's renewable portfolio produced 55,486 MWH of
Portfolio Content Category 1 ("PCC1" or "Bucket 1") RPS product — i.e. fully bundled renewable
energy and corresponding renewable certificates sourced from resources interconnected with the
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2016 RPS Update
January 23, 2017
Page 2
state grid. To optimize 2016 RPS compliance from a cost standpoint, Staff anticipates to fully
utilize the outstanding balance of ALW's Historic Carryover product (HCO) of about 13,005 MWH
(as per the CEC calculation) as well as blend in a maximum allowable 15% of PCC3 product (i.e.
unbundled renewable energy certificates of about 1,700 MWH). This approach would allow ALW
to bank and carry forward into future compliance years approximately 9,000 MWH of the more
valuable PCC 1 product.
Staff will present the official CY 2016 RPS compliance report to the Utility Board in June 2017
before submitting it to the CEC.
FISCAL IMPACT:
There is no fiscal impact associated with the recommend action.
Prepared by: Reviewed and Approved:
Yarek Lehr, P.E. George F. Morrow
Assistant Director of Resource Management Director of Utilities
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
UB-85