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Council Agenda - City of BurbankTuesday, February 7, 2006Agenda Item - 6 |
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Council Agenda - City of BurbankTuesday, February 7, 2006Agenda Item - 6 |
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WATER UPDATE
Water Quality
Financial and Operations Update
The Water Cost Adjustment Charge (WCAC) account had a balance of $1,129,057 as of December 31, 2005.
( ) = Unfavorable * Includes Power Plant Sales, Commercial and Industrial Reclaimed Sales (A) WCAC over collection decreased potable water revenue by $193k in December 2005 and $125k year-to-date. (B) The Water Division did not accrue reclaimed water used for MPP during October-December 2005 of $177k or 125,069 CCF. In addition, revenue is lower than budget due to the MPP delay. The year-to-date impact is $315k. (C) During the first quarter, the BOU has experienced reduced operating capacity due to carbon screen failures, water production problems associated with the persistent low water table and well maintenance. Thus, there was an increased need for purchased water from the Metropolitan Water District (MWD). The BOU had an average of 55% operating capacity compared to a 75% budgeted capacity. (D) Customer deposit of $600k for fire hydrant meter dated from 2002. (E) In-lieu accrual of $39k was recorded in June 2005 as part of year end closing. This entry was reversed in July 2005. BWP does not accrue in-lieu monthly. In addition, year-to-date sales is lower than budget. . Fiscal Year 2005-06 Water Fund Financial Reserve balances as of December 31, 2005 are summarized in the following table:
BOU Water Production
BOU production was at 81% of plant capacity for December. This is an average flow rate (24/7) of 7,309 gallons per minute (gpm). This is the highest production at the BOU in the last two years. The high production was assisted by no Vapor Phase Granular Activated Carbon (VPGAC) filter screen failures, all but one well being available, and a slightly higher water table. This is a change in what has been a persistent low water problem in the aquifer. It�s not clear at this time if the higher production rates from the wells will be sustained for an indefinite period. The Well Field Performance Attainment Study is proceeding to determine the causes of the long term well capacity problems in meeting the 9,000 gpm design.
Environmental Protection Agency (EPA)
Capital Projects
Legislative Update
ELECTRIC UPDATE
Electric Reliability
There were two, 4 kV and no 12 kV feeder outages in December. These outages interrupted services to 68 customers for 295 minutes.
Despite the power outages in December, BWP�s overall reliability continues to be strong. As of December 31, 2005, the system-wide average is 0.2300 outages per year, compared to an industry average of 1.2 outages per year. As of December 31, 2005, the average service availability is 99.9944%, exceeding the City goal of 99.99%. The average outage length is 64.81 minutes, compared with the industry average of 80 minutes.
The following table shows the system-wide reliability statistics for Fiscal Year 2005-06 through December 31, 2005, as compared to the same time period for Fiscal Year 2004-05:
Financial and Operations Update
( ) = Unfavorable
(A) Primarily due to the higher cost of replacement power associated with the MPP delay and outages in October-December 2005. (B) BPA settlement of $591k in July was not budgeted. Actual interest income is higher than budget due to a higher interest rate. Budget assumes interest rate of 2.5% APR. Actual interest rates ranges between 4%-5.5%. (C) In-lieu accrual of $364k was recorded in June 2005 as part of the year end closing. This entry was reversed in July 2005 and no monthly accrual was made in Fiscal Year 2005-06.
Fiscal Year 2005-06 Power Fund Financial Reserve balances as of December 31, 2005 are summarized in the following table:
Note: (1). Paid $7,269k to SCPPA for fuel reserve.
Local Generation Operations Update
Unit Status
December 2005 Unit Data
Magnolia Operations Update
Workforce Safety Statistics:
Performance Information:
Actions Taken by Operating Agent:
Future Actions:
Renewables Update
Following is a summary of the most recent developments related to the Southern California Public Power Authority�s (SCPPA) Request For Proposal (RFP) for renewable energy proposals.
In response to its RFP, SCPPA received proposals from 12 different respondents. A number of the proponents submitted proposals for more than one project, so in total there were 26. Most of the offers were for contracts, although several offered the option of ownership. In general, the wind projects were the most economic ranging in price from the mid $50/MWh to high $69/MWh, followed by several small landfill projects in the mid $60, geothermal projects from the mid $60/MWh to mid $70/MWh, with solar being the most expensive ranging in excess of $85/MWh. Development of the various projects range from some currently built, some have been permitted or are in the process of being permitted, and others are in the planning stage and not expected to come on-line for four or five years at the earliest. Some are dependent on transmission developments which must to be developed in parallel with the generation projects.
Burbank has expressed an interest and is actively pursuing the following:
1. A total of 65 MW in 6 different wind projects. The resources are located in the Pacific Northwest, Wyoming, Utah, and three locations in Southern California. Wind resources are typically available only 35% of the time so a 5 MW project is expected to produce enough energy to provide 1.25% of Burbank�s annual requirements. If all the proposed developments come to fruition the energy output would correspond to 16.25% of Burbank�s annual energy requirements. Burbank has transmission access to about one-half of the proposed developments so it is conceivable BWP could be in a position to receive about 8% of renewable wind energy from this RFP in 3 years.
2. 5 MW of geothermal located in the Imperial Valley. Geothermal facilities run at extremely high load factors and this resource is expected to produce about 3.5% of Burbank�s annual energy requirements. The project development status is very tentative and transmission would need to be built. In order to get the power home, BWP would likely have to arrange for transmission through several other utility�s service territories which has the unfortunate effect of increasing the cost of the resource.
3. 5 MW of solar located near Mohave, California. The proposed solar facility is a peaking resource with maximum output during the afternoon hours of the summer months. The estimate is that it will produce power about 35% of the time, or produce about 1.25% of Burbank�s annual energy requirements. To get the power home, BWP would need to work out transmission arrangements with the Los Angeles Department of Water and Power for transmission service.
There have been several meetings held with project developers to review their proposals. It is expected that negotiations will begin shortly with several to define and clarify the terms and conditions of service. BWP will be undertaking some economic analysis as well on the proposals to determine the potential impact on electric rates by adding renewable resources. Because of high natural gas prices in the near term, it is expected that adding renewable energy when gas prices are over $8.50/Dth may lead to the situation where renewable energy is attractively priced in the initial years but over time, especially if natural gas prices fall, become less attractive and increase the overall cost of BWP�s energy portfolio. The increasing quantities of renewable energy in our resource mix will likely necessitate taking less energy from the Magnolia Project for native load. This means that we�ll need to either back down production out of Magnolia or sell the surplus. Because of the intermittent nature of wind-based energy production, the output of wind resources will likely need to be firmed up using Magnolia or another firm resource, or possibly paying the supplier to do so. Thus, the fiscal and operational impacts of adding renewables needs to be thoroughly examined and understood before final commitments are made.
Through an earlier SCPPA RFP, Burbank acquired the rights to about 2 MW of the Ameresco Landfill project located on Highway 126 west of Valencia. When it goes on-line, this project could provide enough energy to meet about 1.5% of Burbank�s annual energy requirements. The project was initially expected to go into service in mid-2006 but its in-service date is now uncertain. The developer has run into difficulty finalizing the agreement with the owners of the landfill gas. We have been told for some time that the negotiations had been finalized and are ready for execution. However, we have not been advised that this has happened. It is most probably that the developer is running into licensing difficulties with the SCAQMD. Apparently, the gas quality out of the landfill is inferior to other landfill gas in the region so the proposed project cannot meet the emissions targets set by the SCAQMD without considerable increase in cost and major design modifications. The developer has been working unsuccessfully for over a year trying to get exemptions from the SCAQMD. Once the developer has a signed agreement from the owner for the gas, SCPPA, if necessary, has agreed to assist the developer in attempting to get SCAQMD permitting. The outcome of this issue is unknown at this time.
Energy Crisis Update
Staff continues to pursue its interests in order to collect monies still owed to the City as a result of the California Energy Crisis. The City is currently owed approximately $4.8 million for energy sales made during the crisis.
SCADA/EMS
The tie lines to Glendale are in operation. The two Western to Burbank tie meters were changed to resolve problems that Glendale Water and Power (GWP) and BWP were having with the electronic readings. BWP technicians witnessed the meter accuracy testing by GWP Technicians and the test results were acceptable. BWP SCADA is now acquiring accurate reads from the meters.
BWP engineering staff continues to work with Siemens New Energy to implement the New Energy Scheduling software that will be used for Magnolia.
The IT Department has purchased and received the computer equipment for the SCADA upgrade master station. The equipment still needs to be configured and then shipped to Telvent in Houston, Texas.
Telecom
Engineering developed a fiber optic service proposal for BWP�s Communications Section to connect the Burbank Police Department to the Burbank Tower at 3900 W. Alameda Ave.
Engineering developed a fiber optic service proposal for BWP�s Communications Section to connect the Burbank Police Department to the Reservoir 3 microwave site.
Engineering developed a fiber optic service proposal for BWP�s Communications Section to connect the Burbank Police Department to the City of Glendale fiber backbone.
Engineering developed a fiber optic service proposal for Warner Bros. to connect Warner Studios Building 157 to Qwest at 3015 Winona Ave.
Engineering developed a fiber optic service proposal for Toni Koffman (real estate agent) to connect 2201 N. Hollywood Way to the Burbank fiber ring. This request is from a real estate customer looking for office space within the City of Burbank.
Engineering developed a fiber optic service proposal for DTS Digital Images to connect 2777 N. Ontario St. to 1103 Isabel St.
Engineering developed a fiber optic service proposal for OnFiber to connect Burbank�s Magnolia Basement to the LADWP Receiving Station �E.
Engineering developed a fiber optic service proposal for New Wave Entertainment to connect 2660 W. Olive Ave. to Dick Clark Productions at 3003 W. Olive Ave.
Engineering developed a fiber optic service proposal for BWP�s Electrical Services Division to connect the Warner Ranch Station to Capon Station.
BWP Administration Building - Phase III Interior Remodel
A final set of construction drawings was resubmitted to the Building Division with all corrections from the 60% and 90% reviews in place. Approval stamps were received from CDD, Fire and Police. The plans are currently being routed through BWP Electrical, Water and Telecom, and then back to the Building Division for stamped approval and building permit. This set of plans is simultaneously undergoing one more final in-house review and will then be ready to go out to bid. Specifications for the project have been developed in preliminary document form and are also currently under review.
BWP Service Center and Warehouse Project
BWP staff has been working with the SGS Group, a consultant hired to perform the programming and space needs assessment study for a proposed new Service Center and Warehouse to be constructed on BWP�s campus. An RFP was developed for architectural services and three firms who responded were interviewed. Staff is currently reviewing past and current projects to assist in reaching a decision.
Electrical Distribution
In December, 4 power poles were replaced or installed and 2 pole replacements were engineered and issued to the field. Engineering issued a work order to remove 10 power poles and overhead lines on Frederic St. north of Alameda Ave. as a part of an undergrounding effort. Two power poles and overhead lines were removed in the CDD/Public Works block due to the future Community Services Building construction. Engineering continues design work to rebuild the existing facilities in the Alameda feeder areas to 12 kV. This work includes replacements of 4 kV only rated transformers, re-insulating of power lines and any other necessary system improvements. Engineering coordinates the station rebuild process with customers. This process requires a full day outage for each station. One more station was rebuilt to 12 kV in December. Also, as a part of this effort, 3 pad mounted transformers were replaced with dual voltage rated transformers.
In December, 2 new pad mounted customer stations were engineered (apartment buildings on Lake St. and Naomi St.), one was energized (600 E. Magnolia Blvd.) and 1 issued to the field . One deteriorated pad mounted transformer was replaced as a result of field testing.
The final design of the Warner Ranch industrial circuit from the Capon Switching Station at Warner Ranch was approved and Warner Bros. completed all civil construction. All electrical equipment (pad mount switch and pad mount transformer, etc.) has been installed. Except for minor metering work, all other related work such as the installation of cable and splicing was completed. The circuit was initially energized on December 8, but a splice failure caused damage to the underground cable. The damaged cable and splice have been replaced and the circuit is now energized to the padmount switch and low side of the padmount transformer. We are waiting for the service order to energize the low side of the 4,160-volt switchgear and meter reading.
BWP staff could not take transformer A-4 out of service on October 14, 2005 as initially planned. This was due to reliability concerns over the 34.5 kV network in the Burbank Downtown area and its� vicinity as well as the high cost of fuel to run Lake One over the next 4-� months during the replacement. BWP developed and implemented a contingency plan to establish a temporary tie line between the Olive Switching Station and the Burbank Substation and successfully tested and energized the temporary tie on November 1. This tie line is working very well and will maintain the reliability of the 34.5 kV network saving approximately $750,000 in fuel costs to run Lake One. Lake One is available if needed. Since the old A-4 transformer is disconnected, oil has been pumped out, radiators stripped off, and reactors removed from the pads. Old power transformers have been disposed of by ABB Inc., and old cable pulled out by BWP crews. Demolition of the pad and removal of the transit ducts is complete. The installation of new power (4-6�) and control conduits (4-3�) is complete. The transformer pad and oil containment is poured. The Factory Acceptance Test of the power transformers was completed during the week of December 16. Testing of the transformers is complete and they were shipped on December 22 to Houston, Texas. Expected delivery to Houston is January 26, 2006 and we expect them back in Burbank by February 10, 2006. Energization of the first power transformer is expected in mid-March 2006 and the second in mid-June 2006. Completion and close out of the project is estimated for the summer of 2006.
Undergrounding of overhead lines along Frederick St. between Olive and Alameda Aves. is in the final stages. Cable installation and related work is 100% complete. BWP�s portion of the project is complete. High voltage wires have been removed and poles have been cut down to low voltage and communication level.
BWP is working with the City Attorney�s Office, Public Works Department and Community Development Department in forming an Underground Utility District 1 to accomplish the undergrounding of all overhead lines (power and communications) along Olive Ave. from the I-5 Bridge to Victory Blvd., and along Lake St. from Olive Ave. to Magnolia Blvd. To begin this process, the Public Works Director prepared a map, or plat, and a report. It was brought to the City Council for consideration on September 13, 2005. The City Council unanimously approved staff�s recommendation to go to the next step of working with SBC, Charter Communications and other affected communication companies to prepare a final plat, cost estimate, and schedule for completion of undergrounding and removing overhead lines. BWP and Public Works had a preliminary meeting with communication companies impacted by this proposed Underground Utility District on November 2. There seems to be no opposition from SBC, Charter Communications and Verizon to form this Underground Utility District 1. During the December 8 meeting, it was decided that SBC, Charter Communication, and Verizon will submit their proposed design to BWP before January 31, 2006. Cost allocation will be discussed after the final design is completed. BWP estimates the City Council public hearing on the Underground Utility District 1 proposal will be sometime at the end of March 2006. Engineering has completed the final design to provide underground service to the GAC Plant and its vicinity and ultimately remove the overhead line near the Float Shed in the BWP Yard as well as the north side of Olive Ave. Bock Co. completed the duct work on December 12, 2005. Cable work is complete and load conversion and removal of overhead wires in the BWP Yard will be done by January 17, 2006. This will allow ABB to set one of the power transformers at the Olive Switching Station in mid-February 2006. Removal of these wires may also help the Art in Public Places work scheduled on January 19, 2006.
BWP Engineering is working with CDD to build an underground/overhead electrical facility in the alley behind the old Buena Vista Library site. Some of the duct work has been done along Verdugo Ave. from Fredrick St. and Buena Vista St., and the remaining duct work along Fredrick St. north of Verdugo Ave., and alleys east and west of Fredrick St. was started on December 27, 2005 and is estimated to be completed by January 31. The cable work and removal of the overhead electrical lines are scheduled to be completed by May 31, 2006.
Consultants have completed all engineering work related to replacing the old 69 kV circuit breakers. Replacement of one of the breakers is complete with the remaining in progress.
Electrical Engineering staff is working on the design to replace the old electro-mechanical relays at the Winona and Clybourn Substations with micro-processed relays. Construction has already started.
BWP Engineering is working on two projects related to Caltrans. One project is the Alameda, Hollywood Way and Pass Ave. bridge widening on the SR-134, and a new on-ramp at Hollywood Way. The other project is the I-5 freeway, Empire Exchange, and San Fernando Realignment project. We are working with consultants and Caltrans on preliminary design work that involves a great deal of relocation of existing underground and overhead facilities.
Engineering designed an underground streetlight system on Hollywood Way across from Valhalla Ave. This work will be done in conjunction with the Resco project. Engineering is working on undergrounding the streetlight system on Olive Ave.
Engineering continues working with the Redevelopment Agency on the South San Fernando Blvd. street improvement project, and with the PW Traffic Signal Division on other street/traffic improvement projects. These projects include the Olive/Alameda Intersection Widening and the Empire Avenue Streetscape Project. The San Fernando Intelligent Transportation System Project is under construction. A total of 318 remote meters were installed in December.
Customer Service
Project share update
September 2005 marked the second year of our campaign push for Project Share donations. As of November 30, we have received 58 contributions resulting in a total of $1,022.75. In that same period, we also received commitments from 26 more BWP customer accounts for recurring donations which will be automatically billed on a monthly basis. The breakdown is as follows:
The number of customers who have received donations towards their Municipal Utility bill in this period is 33, for a total disbursement amount of $2,713. The current overall balance of the Project Share account is $5,169.17.
We are truly grateful to all in the community who so generously contribute to Project Share, helping to ensure the success of this valuable program.
Legislative Update:
Refer to the attached legislative reports.
RED:BL:FCF:WOM:GLS:JLF H: JANUARY W&E OPERATIONS REPORT
Attachments
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