WATER UPDATE

Water Quality

• Water quality during January met or exceeded State and Federal drinking water standards.

• The Valley Pumping Plant (VPP) blend ratio for the month of January was 36% MWD to 64% BOU.

Financial and Operations Update

The Water Cost Adjustment Charge (WCAC) account had a balance of $1,011,102 as of January 31, 2006.

• Fiscal Year 2005-06 Year-To-Date Water Fund Financial Results as of January 31, 2006:

( ) = Unfavorable

* Includes Power Plant Sales, Commercial and Industrial Reclaimed Sales

(A)       WCAC overcollection decreased potable water revenue by $163k in January 2006 and $292k for year-to-date.   

(B)       The actual YTD MPP consumption of recycled water was 261,889 CCF lower and revenues were $370k lower.    

(C)       During the first quarter, the BOU experienced reduced operating capacity due to carbon screen failures and 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 58% of 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 the 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 January 31, 2006 are summarized in the following table:

BOU Water Production

BOU production was at 78% of plant capacity for January. This is an average flow rate (24/7) of 7,070 gallons per minute (gpm). This is the second highest month�s production (following 81% in December) 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.  The upcoming VPGAC screen project will significantly improve the mechanical reliability of the plant to process and treat water at the full nameplate capacity.     

Environmental Protection Agency (EPA)

• The EPA has granted conceptual approval of the design for the reconfigured VPGAC filter screen.  Calgon Corporation is ready to begin final design of the screens as soon as the EPA clarifies the draft discharge requirements for the VPGAC filter vessels. Calgon Corporation will then complete a detailed final design for the EPA to review and approve. A meeting with EPA, Lockheed Martin, Burbank, and the Air Quality Manage District in December appears to have achieved a breakthrough on the discharge requirements. Final discharge requirements should be available in late February. EPA�s approval is the controlling feature in proceeding with the project. Construction is projected to take three months. Construction will begin after EPA final design approval and the order/receipt of long lead materials. Some long lead materials have already been purchased. Construction will likely take place during late Spring and into Summer. The Treatment Plant will experience reduced operating capacity during project construction. Consequently, there will be an increased need for purchased water from the Metropolitan Water District (MWD).

Capital Projects

• Construction on installing 400 lf of 8-inch water main in Lomita St. between Olive Ave. and Clark Ave. was completed and the main placed in service.  All existing water services were tied over to the new main.

• Construction began and was completed in installing 600 lf of 8-inch water main in Verdugo Ave. between Kenneth St. and Seventh St.  The new water main is in service.

• MWD is on schedule to begin dewatering the San Fernando Tunnel by the end of February.  MWD has received bids and is issuing purchase orders for the construction of a drain line from the Tunnel to a City of Los Angeles sewer. The tunnel should be drained and available for inspection by the beginning of May.  The actual condition of the San Fernando Tunnel will then be determined.  The plan and schedule for the Pacoima B-6 connection project will be modified at that time. 

Legislative Update

• Refer to the attached legislative reports.

ELECTRIC UPDATE

Electric Reliability

There were five, 4 kV and three, 12 kV feeder outages in January. These outages interrupted service to 3,929 customers for a total of 480 minutes.

• On January 2, stormy weather contributed to four feeder outages.  Palm fronds interrupted service to Alameda A-97 (556 customers for 93 minutes), McCambridge M-1 (800 customers for 88 minutes), and Victory V-7 (915 customers for 38 minutes).  Downed wires interrupted service to Naomi N-17 which affected 445 customers for 49 minutes.

• On January 20, dispatcher error caused outages to three, 12 kV feeders.  This interrupted service to Golden State GS-9 (72 customers for 3 minutes), Golden State GS-10 (81 customers for 3 minutes), and Golden State GS-11 (30 customers for 3 minutes).  These three feeders are connected to 12 kV Bus Section A-2.  Because the 12 kV bus sectionalizing breaker was out of service for repair, this bus section was only served by the Golden State-Lincoln #2, 69 kV line.  Work was being done on 69 kV breakers at Lincoln and a request was made to open breakers #6 and #7.  These two breakers serve the Golden State-Lincoln #2, 69 kV line.  When the dispatcher opened the two breakers there was no longer any service to Golden State 12 kV Bus Section #2.

• On January 22, downed wires interrupted service to Burbank 6, which affected 573 customers for 153 minutes.

• On January 23, a palm frond interrupted service to Town T-10, which affected 457 customers for 50 minutes.

Despite the power outages in January, BWP�s overall reliability continues to be strong. As of January 31, 2006, the system-wide average is 0.3071 outages per year, compared to an industry average of 1.2 outages per year. As of January 31, 2006, the average service availability is 99.9933%, exceeding the City goal of 99.99%. The average outage length is 67.06 minutes, compared with the industry average of 80 minutes.

The following table shows the system-wide reliability statistics for Fiscal Year 2005-06 through January 31, 2006, as compared to the same time period for Fiscal Year 2004-05:

Burbank Water and Power Scores Platinum

On April 10, 2006, Burbank Water and Power will be recognized by the American Public Power Association as one of just 64 of the nation�s more than 2,000 public power utilities to earn a Reliable Public Power Provider^TM award.  The award recognizes BWP for providing consumers with the highest degree of reliable and safe electric service.

The Reliable Public Power Provider, or RP3, awards public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, training and system improvement.  Criteria within each category are based on sound business practices and represent a utility-wide commitment to safe and reliable delivery of electricity.

BWP received a platinum designation, achieving over 90% of the criteria. BWP is proud to receive this distinguished award along with three other California public power providers: Anaheim Public Utilities, Riverside Public Utilities, and Roseville Electric.

Financial and Operations Update

• Fiscal Year 2005-06 year-to-date Power Financial Results as of January 31, 2006:

( ) = 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 range between 4%-5.5%. YTD impact of higher interest income is $600k.

(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 January 31, 2006 are summarized in the following table:

Local Generation Operations Update

Unit Status

• Olive 1 is shutdown for boiler inspection. This unit is expected to return to service by mid-February.

• Olive 2 is in hot-standby and available for normal service.

• Lake One is available for normal service.

• The micro-turbine project is complete. This unit generates 300 kilowatts per hour on the average.  

• Hydro energy production for January was 27,100 kWh as compared to the goal of 58,000 kWh. The year-to-date actual hydro production is 420,100 kWh as compared to the goal of 498,000 kWh.

January 2006 Unit Data

Magnolia Operations Update

Workforce Safety Statistics:

• No loss time accidents for January, zero year-to-date

• No reportable accidents for January, zero year-to-date

Performance Information:

• Availability:  100% for January, 100% year-to-date

• Forced Outage Events:

No forced outage events for January

• Range of Available Generation Capacity:  210-250 MW

• Fired Factored Hours:  666.9 Hours

Actions Taken by Operating Agent:

• No new major contracts awarded.

• Planned Outage:  March 17, 2006 for offline water washing.

Renewables Update

Burbank continues to work with the SCPPA project team on acquiring renewable energy.  All proposals in response to SCPPA�s recently completed renewable energy RFP are subject to confidentiality to protect the business interests of the proponents and ensure their offers remain competitive. Therefore, updates on the progress of negotiating definitive agreements and procurement activities will be kept general.

During the month of January there were five meetings, or conference calls, with short-listed vendors to the recently completed SCPPA RFP.  These meetings enabled the parties to discuss the major terms and conditions of the proposed purchased power and project agreements.  The wind projects have the most momentum and it is expected that purchased power agreements will be negotiated by this summer. A preliminary meeting was held with a solar power proponent to get clarification on their proposal.

As well, SCPPA has been working on a development agreement between itself and members to provide structure and management to the process for obtaining definite agreements with the RFP proponents.  It will also provide a mechanism for resource allocation among the participants and cost sharing for SCPPA and consultant expenses.  It is expected that the development agreement will be ready for the participants to take to their respective councils in April.

Supplemental Crude Oil Refund

BWP received a net payment of $130,133.70 from the Department of Energy (DOE) for a final refund in its Subpart V Crude Oil Refund Proceeding to qualified claimants. The first two refunds were issued in 1991 and 1995. The purpose of the refunds is to compensate users of oil products for overcharges assessed by various energy companies in violation of the oil price regulations that were in effect from August 19, 1973 through January 27, 1981. The refunds are being paid from the monies these energy companies have been required to pay to DOE as a result of the overcharges.

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

BWP engineering staff continues to work with Siemens New Energy to implement the New Energy Scheduling software that will be used for Magnolia. Gas nominations became operational in January.   Work continued to make OATI Web Trader operational.

Computer equipment for the SCADA DNA upgrade was sent to Telvent in Houston.  An engineer from BWP, and an analyst from IT, went to Houston to check the equipment after shipment.  The equipment arrived safely and has been tested successfully for operation.  The network topology was discussed and is being finalized.

The dispatchers are using a database in parallel with a spreadsheet that has been used to collect hourly electrical system data.  The database is planned to replace the spreadsheet starting February 1, 2006.

Telecom

Engineering developed a fiber optic service proposal for BWP to connect Capon Electrical Station to Warner Ranch Electrical Station.

Engineering developed a fiber optic service proposal for Broadwing Communications to connect Nickelodeon, 231 W. Olive Ave. to LADWP RSE Station.

Engineering developed a fiber optic service proposal for Viacom Inc. to connect Nickelodeon, 231 W. Olive Ave. to TVN, 2901 W. Alameda Ave.

Engineering developed a fiber optic service proposal for SohoNet to connect FotoKem, 2801 W. Alameda Ave. to LADWP RSE Station.

Engineering developed a fiber optic service proposal for FotoKem to connect 2801 W. Alameda Ave. to Team Disney Building, 500 S. Buena Vista St.

Engineering developed a fiber optic service proposal for SohoNet to connect Team Disney Building, 500 S. Buena Vista St to LADWP RSE Station.

Engineering developed a fiber optic service proposal for SohoNet to connect WestWind Media, 100 W. Alameda Ave. to LADWP RSE Station.

Engineering developed a fiber optic service proposal for Technicolor to connect 2233 Ontario St. to 919 N. Hollywood Way.

Engineering developed a fiber optic service proposal for Technicolor to connect 250 E. Olive Ave. to 919 N. Hollywood Way.

Engineering developed a fiber optic service proposal for Technicolor to connect 1417 Railroad St in Glendale to 919 N. Hollywood Way.

Engineering developed a fiber optic service proposal for Craig Murray Production to connect 2717 W. Olive Ave. to 2911 W. Olive Ave.

Engineering developed a fiber optic service proposal for Qwest to connect NBC, 3000 W. Alameda Ave. to the 3015 Winona Ave.

Engineering personnel released, and BWP field personnel completed, a fiber optic job for SohoNet to disconnect Warner B157, 4000 Warner Dr. to West Olive Plaza, 3601 W. Olive Ave.

Engineering personnel released a fiber optic job for Universal Studios to connect Universal Studios, 3801 Barham to NBC Studios, 3000 W. Alameda Ave.

BWP Administration Building - Phase III Interior Remodel

Plans and construction drawings received approval stamps from CDD, Fire, Police, BWP�s Electrical, Water and Telecom Sections. Final in-house review will be completed shortly, including the associated specifications. The set of plans will then go back to the Building Division for stamped approval and the building permit prior to a meeting with Purchasing to begin the bid process for a contractor.

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. As a result of the RFP, staff completed the review of past and current projects submitted by three candidates for architectural services. A decision was reached to hire Kennard Design Group (KDG) of Los Angeles. Professional Services Agreements were drafted for both SGS Group and KDG and presented to the BWP Board for approval.

Electrical Distribution

In January, two power poles were replaced or installed, and nine pole replacements were engineered and issued to the field. The work order removing or abandoning ten power poles and overhead lines on Frederic St. north of Alameda Ave. to communication companies has been completed.  Engineering continues to work on the design 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 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. In January, Engineering designed a new underground feed to two existing customer stations (one vault and one pad mounted transformer) and the rebuild of both stations to 12 kV.  This construction will take place in March when Bock Company is available to construct the underground conduits.

In January, two new pad mounted customer stations were engineered (apartment buildings on Palm Ave.. and the parking structure on Frederic St.), three were energized (Home Depot with a pad mounted switch and three pad mounted transformers, an apartment building on Heffron Drive and the Hydrogen Station in the Public Works Yard), and one was issued to the field . One more 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 and cured. The Factory Acceptance Test of the power transformers was completed during the week of December 16 and the transformers were shipped on December 22 to Houston, Texas. They arrived in Houston on January 26, and after customs clearance were transported by trucks to Burbank. The transformers were delivered on pads February 1.  Assembly of one transformer is in progress along with the underground cable installation.  Wiring and other related work is being performed to get the first transformer ready for testing in the first week of March.  Energization of the first power transformer is estimated before March 15, 2006.  After the first bank is in service for two weeks, and results are to our satisfaction, we will schedule the second bank to be taken out of service in early April and have it ready for energization before June 30, 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.  The developer is proceeding with construction of the parking structure and second office building at the corner of Alameda and Fredrick Sts.

BWP is working with the City Attorney�s Office, Public Works Department and Community Development Department in forming an Underground Utility District 1 (UUD1) 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 work 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 on November 2 with the communication companies impacted by this proposed Underground Utility District. 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 would submit their proposed design to BWP before January 31, 2006. We met again on February 9 to review the final layout of the proposed design and discuss any design related issues.  Cost allocation regarding a joint trench with SBC, Charter Communications and other communication companies was also discussed.  A public outreach hearing is tentatively scheduled for March 15 and a public hearing for the UUD1 is scheduled for March 28, 2006. A tentative schedule for completion will be provided in the March 14 and March 28, 2006 staff reports.  Engineering 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 was completed and load conversion and removal of overhead wires in the BWP Yard was finished by January 17, 2006.  This allowed ABB to set one of the power transformers at the Olive Switching Station on February 1, 2006. Removal of these wires also helped 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 was completed by February 3, 2006.  The cable work and removal of the overhead electrical lines is 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 two of the breakers is complete, and replacement of the remaining breakers is 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 design work that involves a great deal of relocation of existing underground and overhead facilities.

Engineering is working on undergrounding the streetlight system on Olive Ave. as well as two development related projects along the perimeter of the proposed CarMax on Flower St. and Alameda Ave., and Burbank Medical Plaza on Frederic St.  Three streetlight standard installations were issued in January.  The Flower St. portion of the new underground streetlight system in front of the Home Depot was energized. 

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 171 remote meters were installed in January. 

Customer Service

Muzak Comes To BWP 

We know what you�re thinking but, rest assured, MUZAK has come a long way from the perceived �elevator music� of yesteryear.  On January 3^rd, we implemented an Audio Marketing package which includes contemporary music on hold, as well as up to six professionally produced marketing messages a year specific to BWP and our programs and benefits.  We started out with four scripts relating to Conservation; the Home Energy Analyzer and our Home Rewards cash rebates, the Community; BWP�s Project Share program, and Customer Service; our Flash Pay payment option.  These messages can be heard on most all incoming lines within BWP.  So far, we have received positive feedback and feel confident that this service does add value and enhance our marketing strategies within the Customer Service, Conservation, and Marketing divisions.

At the February 16, 2006 meeting of the Burbank School Board, Mary Forrest represented BWP for a "Read Across America Day" recognition.  Joel Shapiro, Assistant Superintendent for Instructional Services, gave a report on Burbank Unified School District elementary school�s participation in "Read Across America Day", also known as Community Read Day. Mr. Shapiro gave certificates of appreciation to businesses and City departments who will be sending volunteers to share their love of reading and the impact reading makes in their specific careers.  This year, the Read Across America Day event is March 2, and the theme is "Read With a Caring Adult".

Thomas A. Edison elementary school celebrated February as the birth month of their very famous name sake with a dramatic "show and tell" electrical presentation.  BWP Speaker Bureau members Don Tyndall and Tim Blunt impressed the K-5 assembly by showing the students how electricity moves, generation of electricity in a steam engine, and how static electricity can make your hair rise.  A total of 585 students participated in the school-wide assembly. Students also received educational gift bags. 

Legislative Update:

Refer to the attached legislative reports.

RED:BL:FCF:WOM:GLS:JLF

H:  FEBRUARY W&E OPERATIONS REPORT

Attachments

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