WATER UPDATE

Water Quality

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

• The Valley Pumping Plant (VPP) blend ratio for the month of February was 54.5% MWD to 45.5% BOU.

Financial and Operations Update

The Water Cost Adjustment Charge (WCAC) account had a balance of $1,297,213 as of February 28, 2006.

• Fiscal Year 2005-06 Year-To-Date Water Fund Financial Results as of February 28, 2006:

( ) = Unfavorable

* Includes Power Plant Sales, Commercial and Industrial Reclaimed Sales

(A)       WCAC over-collection decreased potable water revenue by $5k in February 2006 and $297k for year-to-date.  

(B)       The actual YTD recycled water consumption for MPP was 303,317 CCF lower or $429k lower in  revenues.    

(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 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 year end closing. This entry was reversed in July 2005. BWP does not accrue in-lieu monthly. In addition to that, YTD sales is lower than budget.

Fiscal Year 2005-06 Water Fund Financial Reserve balances as of February 28, 2006 are summarized in the following table:

BOU Water Production

BOU production was at 54% of plant capacity for February. This is an average flow rate (24/7) of 4,890 gallons per minute (gpm). Production is down this month because of the cooler wet weather, failure of a carbon retention screen in one of the Vapor Phase Granular Activated Carbon (VPGAC) filters and the beginning of a scheduled MWD maintenance shutdown.  The maintenance shut down began 2/28/06 and will continue for up to 8 days in March.  The screens are under repair and should be available for service by mid-March.  All water wells were available and the water table is still slightly higher than the last few years.  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 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.  EPA issued VPGAC discharge requirements in mid-February.  Calgon Corporation is reviewing the requirements and determining what will be necessary to meet the requirements. Calgon Corporation will then initiate and 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 resumed on installing 1,320 lf of 12-inch water main in Hollywood Way between Thornton and Winona.

• MWD is on schedule to begin dewatering the San Fernando Tunnel by the first or second day of March.  They have issued 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 was one, 4 kV feeder outage in February. This outage interrupted service to 495 customers for a total of 76 minutes.

• On February 12, at 11:54 p.m., a Pizza Hut delivery truck hit a guy wire causing contact between two energized conductors of Feeder Victory 6 at the alley west of Hollywood Way and north of Victory Blvd.  This incident caused a power outage to 495 (3 commercial and 492 residential) customers for 76 minutes.

Despite the power outage in February, BWP�s overall reliability continues to be strong. As of February 28, 2006, the system-wide average is 0.3168 outages per year, compared to an industry average of 1.2 outages per year. As of February 28, 2006, the average service availability is 99.9939%, exceeding the City goal of 99.99%. The average outage length is 67.33 minutes, compared with the industry average of 80 minutes.

The following table shows the system-wide reliability statistics for Fiscal Year 2005-06 through February 28, 2006, as compared to the same time period for Fiscal Year 2004-05:

Financial and Operations Update

• Fiscal Year 2005-06 year-to-date Power Financial Results as of February 28, 2006:

( ) = Unfavorable

(A)           Primarily due to the higher cost of replacement power associated with MPP delay and outages in October 2005 � February 2006.

(B)           BPA settlement of $591k in July and supplemental crude oil refund of $130k in February was not budgeted. Actual interest income is higher than budget due to higher interest rate. Budget assumes interest rate of 2.5% APR. Actual interest rates ranges between 4% - 5.5%. YTD impact of higher interest income is $659k.

(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 February 28, 2006 are summarized in the following table:

Local Generation Operations Update

Unit Status

• Olive 1 is in hot-standby and available for normal service. 

• Olive 2 is down for boiler inspection.

• 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.

February 2006 Unit Data

Magnolia Operations Update

Workforce Safety Statistics:

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

• No reportable accidents for February, zero year-to-date.

Performance Information:

• Availability:  00.15% for February, 80.3% year-to-date.

• Forced Outage Events:

Situation: At approximately 0100 hr. on February 01, 2006, the plant tripped off-line.  �T� core of the Combustion Turbine (CT) Mark VI control failed and sent a false signal to the Distributed Control System (DSC) that the CT breaker had opened.  The CT Mark VI Control has logic that trips the Steam Turbine if the CT breaker indicates open.

Action: After investigation, it was found that the CT breaker signal was a non-voting signal in the control system.

Result: This signal was moved to a different control core and is now a 2 out of 3 voted signal.

• Planned Outage Work Performed During Forced Outage

During the above Forced Outage, planned work was performed.  This work included installation of heat shields on the  Heat Recovery Steam Generator (HRSG) super heater, system by system commissioning of the Zero Liquid Discharge (ZLD), removal of all piping obstructions that resulted from upsets during start-up activities, relining of damaged linings in the crystallizer and piping, up-grade of the steam turbine turning gear, replacement of the steam seal dump valves with a new GE design, factory warranty work for one of the two boiler feed pumps, and inspection and system checks of the steam piping alignment between HRSG and EPC supplied steam lines.

• Range of Available Generation Capacity:  0 MW

• Fired Factored Hours:  1 Hour

• Actions Taken by Operating Agent:

• No new major ($100,000) contracts awarded.

Renewable Energy Procurement Update

Burbank continues to work with the SCPPA project team on the various renewable energy proposals received on SCPPA�s Request for Proposals.  All the proposals remain subject to confidentiality agreements between SCPPA and the proponents to protect the business interests of the proponents and to ensure that the terms and conditions associated with their proposals don�t fall into the hands of competitors therefore, the need remains to keep reports on progress general. 

During the month of February there were numerous meetings and conference calls with project proponents.  The wind projects continue to have the most momentum and we are optimistic that we will have at least one purchased power agreement in place by this summer for about 1.2% of our requirements.  We plan on using the contract associated with this agreement as the template for another purchased power agreement from the same developer for another larger project that would supply an additional 7% of our requirements.  Delivery from this second project is at this time not expected until mid 2007.  As well, SCPPA signed a letter of intent with a different wind developer in Southern California.  That project is at an early stage of development and not expected to produce energy until sometime in late 2007. 

A meeting was also held with a solar energy developer in order to get a better understanding of their project, operating characteristics, and costs.  A follow-up meeting will be scheduled with the developer once SCPPA and its members have had a chance to internally review the project. 

SCPPA also signed a letter of intent with a geothermal developer to work on developing a project which would be located in Southern California.  At this time this potential project is in the conceptual stages of development with many project features unknown.  As details become clearer we will report them.

As well, SCPPA continues to work on a Development Agreement between itself and members which will provide the structure and project management for SCPPA and its members to jointly develop renewable projects through SCPPA.  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.

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 is being used for Magnolia. OATI Web Trader is operational.

Material arrived from Telvent to upgrade the SCADA Remote Terminal Units from using an Intel 386 CPR to using an Intel 586 CPU.  BWP�s Test Section has started programming the new boards and will start installation during the first part of March.

Telecom

Engineering developed a fiber optic service proposal for Qwest to connect Pinnacle #2, 3300 W. Olive, to the Qwest Cyber Center at 3015 Winona Ave.

Engineering developed a fiber optic service proposal for Technicolor to connect 2255 N. Ontario St. to Warner Building 157 at 4000 Warner Boulevard.

Engineering developed a fiber optic service proposal for SohoNet to connect 200 S. Flower St to the Magnolia fiber co-locate room.

Engineering personnel released, and BWP field personnel completed a fiber optic job for FotoKem to connect 2801 W. Alameda Ave. to the Team Disney Building at 500 S. Buena Vista St.

Engineering personnel released a fiber optic job for Viacom Inc. to connect Nickelodeon at 231 W. Olive Ave. to TVN at 2901 W. Alameda Ave.

Engineering personnel released a fiber optic job for New Wave Entertainment to connect their facilities at 2660 W. Olive Ave. and 3003 W. Olive Ave.

Engineering personnel released, and BWP field personnel completed a fiber optic job for Disney to connect the Disney Frank Wells Building at 500 S. Buena Vista St. to Disney at 800 Main St.

Engineering personnel released, and BWP field personnel completed a fiber optic job for Warner Bros. to re-route Warner Building 157 to Warner�s 2777 Ontario Street facility.

Engineering personnel released a fiber optic job for Modern Video Film to re-route Modern Video Film, 4411 W. Olive Ave. to 1733 Flower St.

BWP field personnel completed a fiber optic job for NBC Universal to connect Universal Studios at 3801 Barham Blvd. to NBC Studios at 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 is in process and will be completed shortly, including the associated specifications. The set of plans will then go back to the Building Department for stamped approval and 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 the result of an 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. PSA�s were sent to both consultants.

New Employee Entrance Project

This project involves the installation of a new proximity card operated, turnstile equipped entrance/exit for employees off of the Magnolia parking lot. Construction drawings and specs were developed, a job walk was conducted, bids were solicited and a contractor awarded the project. Purchasing is awaiting the contractor�s bonds and insurance prior to issuing a purchase order to proceed.

Magnolia Covered Parking Lot Extension

This project involves modifying the existing area east of the Magnolia employee covered parking lot to create additional covered employee parking spaces. A new ingress/egress opening will be made in the existing wall, the structure will be pressure washed and painted, new lighting will be installed, a chain link fence will be added and the area will be paved and striped. Preliminary construction drawings and specs were developed and are currently under review by BWP staff.

Security Wall Construction

This project involves constructing a new 320 foot long security wall along the southerly side of the Magnolia covered parking lot, east of the Magnolia gate. The wall will be identical in height to the wall on the west side of the gate and will correct security concerns identified during the construction of MPP.   Preliminary construction drawings and specs were developed and are currently under review by BWP staff.

Electrical Distribution

In February, 3 power poles were replaced or installed and 2 pole replacements were engineered and issued to the field. The work order removing or abandoning 10 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 existing facilities in the Alameda feeder areas to 12 kV. This work includes replacement 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 February, 1 station was rebuilt to 12 kV.  Engineering also issued the rebuild of 2 more customer stations in the Alameda 7 area.  This construction will take place in March after Bock Company is available to construct the underground conduits and BWP crews pull the new cable up to the nearest point of service.  The first phase of the 4 kV Alameda 11 Feeder to 12 kV Hollywood Way 7 Feeder conversion is scheduled for March 23, 2006 and Alameda 3 on March 26, 2006.

In February, 2 new pad mounted customer stations were engineered (an apartment building on Verdugo Ave. and The Collection, a residential/commercial project on First St. next to the AMC).  One padmount transformer was energized (an apartment building on Magnolia Blvd.). 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. A signed service order was received from the Building Department and the service was energized after Warner Bros. made provisions to read electric meters via a telephone line.

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 was 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 during 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 mid-March 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 Ave. and Alameda Ave. 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 Ave. and Frederick St.

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 Communications, and Verizon would submit their proposed design to BWP before February 9, 2006. A meeting was held on February 9, 2006 to review the final layout of the proposed design, and design related issues were discussed.  Cost allocation regarding a joint trench with SBC, Charter Communications and other communication companies was briefly discussed.  A Resolution of the City Council to approve the map, or plot, and the Public Works Director�s Report as well as set a date for a public hearing is scheduled on April 11, 2006.  The public hearing would be on May 2, 2006.  A public outreach is tentatively scheduled for April 19, 2006.  A tentative schedule for completion will be provided in the April 11 and May 2, 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 completed on February 3, 2006.  The cable work and removal of the overhead electrical lines is in progress and 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 three 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 work is in progress.

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. as well as the above mentioned new streetlight system on freeway overpasses.  In response to customer requests, 6 streetlight installations were issued in February.  The Alameda Ave. portion of the new underground streetlight system was energized.  This completes the Home Depot requirements for streetlight improvements.  Engineering completed the design of undergrounding the streetlighting in front of the Resco property on Hollywood Way. 

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 320 remote meters were installed in February. 

Customer Service

Protector Del Aqua

For the past four years BWP has offered our residential customers a series of landscaping workshops.  These workshops, Protector Del Aqua (PDA), have been sponsored by the MWD.  Typically, two classes each are held in the Fall and Spring instructing novice gardeners in proper gardening techniques.  MWD is augmenting the highly successful landscaping class with an additional component, a Weather-Based Irrigation Controller (WBIC).  To receive the �smart� weather-based controller and weather sensor, residential customers taking the PDA landscaping class must meet three qualifications: attend all four classes in the series; have an existing sprinkler system and watering controller; and, at the third class, customers must turn-in their current irrigation controller.  The retail price for the WBIC is $395.  The WBIC is the latest innovation in irrigation to give plants the right amount of water for the time of year, climate and weather.  The weather decides when the sprinklers come on and that saves money.  BWP will be offering the new PDA/WBIC combination classes for four-weeks this May.

Legislative Update:

Refer to the attached legislative reports.

RED:BL:FCF:WOM:GLS:JLF

H:  MARCH W&E OPERATIONS REPORT

Attachments

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