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HomeMy WebLinkAboutAgenda Packet - December 23, 2002 - UBAGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA LIGHT & WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON DICK STANFORD VICE CHAIRPERSON CRISTINA C. MADRID BOARD MEMBER MONDAY, DECEMBER 23, 2002 6:30 PM DAVE HARDISON BOARD MEMBER IOSEPH R. ROCHA BOARD MEMBER 6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call 1. PUBLIC PARTICIPATION (PersoryGroup 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 hls/her comments. Public Participation w/11 be limited to sixty (60) minutes time.) The Consent Calendar adopting the printed recommended action w111 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. 001 I1. CONSENT CALENDAR A. Minutes. Recommendation: Approve minutes of regular meeting of November 25, 2002, as written. E II -A. Minutes 11-25-02 Purchase of lohn Deere Backhoe to Coastline Equipment. Recommendation: Waive formal bid process and award the purchase of a John Deere Backhoe to Coastline Equipment in amount of $56,949.73. E II -B. Backhoe Purchase C. Bid Specifications for Hydro Excavation (Vacuum) Truck. Recommendation: Adopt specifications and authorize bidding process for one Vacuum Truck. IIC. VacuumTruck Bidding D. Amendment to Blanket Purchase Order to Upper San Gabriel Valley Municipal Water District. Recommendation: Authorize amendment in amount of $80,000 to Blanket Purchase Order issued to USGVMWD for fiscal year ending June 30, 2003. E II -D. Amend PO USGVMWD Suburban E. Consulting Service Agreement for Sewer -Line improvements Project. Recommendation: Approve Consulting Service Agreement with RCE Consulting Engineers for the Sewer -line Improvements project in amount of $128,805. H II -E Sewer Line Agnnt Pavement Management Plan Improvements. Recommendation: Authorize advertisement for "Pavement Management Plan Improvements" and construction bidding by the City Clerk's Office. H II -F. Pavernent Plan G. Traffic Signal Improvements at the Intersection of Gladstone and Pasadena. Recommendation: Authorize advertisement for "Traffic Signal Improvements at the Intersection of Gladstone and Pasadena" and construction bidding by the City Clerk's Office. 002 II -G. Traffic Signal III. SCHEDULED ITEMS A. Customer Survey Results and Award Customer Service Training to Measure -X. Recommendation: Waive formal bid process and award customer service training to Measure -X in amount of $15,700. E III -A. Cust Sery Survey & Measure X RESTATED FIRM TRANSMISSION SERVICE AGREEMENTS BETWEEN EDISON AND AZUSA. Recommendation: Approve six amended and restated firm transmission service agreements between Edison and Azusa, and authorize the Mayor to sign the agreements. E III -B. Edison Transm5slon Agreem C. MEMBERSHIP IN FINANCING AUTHORITY FOR RESOURCE EFFICIENCY OF CALIFORNIA (FARECap, AND RESOLUTION DECLARING CITY'S INTENTION TO BE REIMBURSED FOR CERTAIN EXPENDITURES OUT OF THE PROCEEDS FROM TAX-EXEMPT FINANCING. Recommendation: Adopt resolutions to join FARECal membership and to declare City's intention to be reimbursed for certain expenditures from the proceeds of proposed tax exempt financing. E III -C. FARECal and Bond Resolutions D. CONTRACT TO DESIGN ENGINEER, PROCURE CONSTRUCT (EPC) AZUSA LIGHT S WATER 2°" ELECTRIC SUBSTATION (1160 W. Gladstone St.). Recommendation: Award EPC Agreement to Black & Veatch Construction Inc., in amount not to exceed $3,086,000 for the design, engineering, procurement, construction and commissioning of Azusa Light Water's 2nd electric substation at 1 160 West Gladstone Street, and authorize the Mayor to execute EPC Agreement. n III -D. Substation E. AMENDMENT TO RISK POLICY AND AUTHORITY CONVEYANCE FOR POWER TRANSACTIONS. Recommendation: Approve the proposed amendment to the Risk Policy and convey proposed authority to Power Resource (Division) personnel to conduct short term power transactions. III -E. Power Transaction 003 N. STAFF REPORTS"MMUNICATIONS A. Project Updates B. Power Resources Division Monthly Report E IV -B. Power Resors Month Report V. DIRECTORS' COMMENTS VI. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Gov. Code Sec. 54956.9(c)). Number of potential cases: 1 B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.8 Property: 1020 W. 10"' Street, Azusa, CA 91702 City Negotiator: Joe Hsu, Director of Utilities Negotiating Parties: Henry Domolina, Kress Pandzie Under Negotiation: Instruction to negotiator will concern price and terms of payment. VII. ADIOURNMENT A. Adjournment. "7n compliance with the Americans with Disabilities Act, ifyou need special assistance to participate in a city meeting, please contact the City Clerk at 616-812-5229. Notification three (3) working days prior to the meeting or time when special services are needed wiO assist staffin assuring that reasonable arrangements can be made to provide access to the meeting. " 004 r i Y CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, NOVEMBER 25, 2002 - 6:30 P.M. The Utility Board Members of the City of Azusa met in regular session, at the above date and time in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue, Azusa, California. Chairperson Chagnon called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID ABSENT: COUNCILMENIBERS: NONE Also Present ALSO PRESENT: City Attorney Carvalho, City Manager Cole, Assistant City Manager Person, Director of Utilities Hsu, Assistant to the Director of Utilities Kalscheuer, Assistant Director of Water Operations Anderson, Assistant Director of Customer Care and Solutions Vanca, Assistant Director of i Resource Management Tang, Assistant Director of Electric Operations Ramirez, Deputy City Clerk Toscano, City Clerk Mendoza. Public Participation Pub Part Mr. Art Morales addressed Council/Utility Board members expressing concerns regarding crime in A. Morales the City and what is being done about it. Comments City Manager Cole and Councilmember Rocha responded stating that meetings are being setup in CityMgr & certain areas of town to address problems and also door to door inquiries are being made by Cncl Human Relations Commission members as well as certain Councilmembers. response Reverend Murray Flagg also responded to the issue stating that he and APU students will be M. Flagg participating in the outreach to the community. Comments Item re: Proposed Ballot Measure regarding Utility Tax, was brought forward for discussion. UT Issue brt .1 11 City Manager Cole provided a detailed history of the Utility Tax, i.e. when it was first adopted, City Mgr court decisions, and the need to take the issue and it's requirements to the voters. He also Comments` r noted the need for additional revenues for Police, Library and Recreation services. He proposed a reduction of the residential Utility Tax from 5% to 4% and an increase to commercial Utility Tax from 5% to 8%. He talked about meetings that were held with the Chamber of Commerce and Downtown Azusa Business Association and their suggestions of seeking other alternatives regarding the issue and opposition to taxing telephones and wireless devices. He stated that there is support from the business leaders to actively participate in the community "Tax Review Task Force" which will be appointed by Council to work with them and staff on a broader tax reform plan to be put before voters in November 2003. He recommended that the Utility Tax issue be placed before the voters in March, 2003, without the telephone and wireless devices. He then asked Councilmembers for direction with regard to Exemptions on Utility Tax. Lengthy discussion was held between Councilmembers and staff regarding the exemptions for Discussion Utility Tax which are currently as follows: 1) Individuals over the age of 61, 2) Individuals certified Exemptions as handicapped by the city's light and water department, 3) Individuals certified as low-income UT tax using standards developed by the City's Light &Water department, and organizations classified as exempt from taxation under chapter 501 of the Internal Revenue Code. Each Councilmember expressed his/her view on the issue. It was consensus that this issue would not be considered at this time but will be discussed by Tax Review Task Force. The following persons expressed their concern regarding the Utility Tax Measure: Art Morales, Public John Moore, Joan Singleton, and Murray Flagg. Comments After additional Council discussion, it was moved by Councilmember Rocha, seconded by Place a ballot Councilmember Hardison and unanimously carried that a ballot measure be placed on the March, Measure 2003, ballot that would: reduce the rate for residential electric, water and gas from 5% to 45/6 and Re: UT Increase the rate for commercial electric, water and gas from 5% to 8%. (telephone and wireless On March devices were eliminated from the recommendation). Further, that the Tax Review Task Force be 4' ballot established, and discuss the non-profit and over 61 year exemptions during the review. Councilmember Rocha offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, ORDERING THE Res. 02-C136 SUBMISSION OF A MEASURE TO THE QUALIFIED ELECTORS. OF THE CITY TO AFFIRM AND Ordering AMEND THE UTILITY USER TAX WITHIN THE CITY OF AZUSA ON MARCH 4, 2003. Submission Measure Moved by Councilmember Rocha, seconded by Councilmember Stanford to waive further reading UtilityUser and adopt. Resolution passed and adopted by the following vote of the Council: 3/4/03 ballot AYES: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE The CONSENT CALENDAR consisting of Items 11-A through 11-F, were approved by motion of Consent Councilmember Rocha, seconded by Councilmember Stanford, and unanimously carried with the Calendar exception of Item II -C, which was considered under the Special Call portion of the Agenda. 11-C Spec A. The minutes of the regular meeting of October 28, 2002, were approved as written. Min appvd B. Approval was given to amend the blanket purchase order Issued to Civiltec Engineering, Inc., Amend PO in the amount of $50,000, for fiscal year 2002-03 to cover engineering costs related to the CMitec Northern Transmission Line. Engr C. SPECIAL CALL ITEM. Spec Call 11/25/02 PAGE TWO 006 D. ,Approval was given to award bid and authorize purchase Light and Water trucks as follows: Purchase (3) 2003 one ton gasoline powered service trucks from Wondries Fleet Group in the amount Of Trucks of $71,214.45,(1) 2003 GVRW 15,000 Ib. Payload, diesel powered welding truck also from Light & Wondries Fleet Group in the amount of $42,627.77 and (1) 2003 5-6 yard diesel powered Water Dump Truck from Peck Road Truck Center in the amount of $53,851.12. E. Authorization was given to the City's Investment Committee to engage E.J. De La Rosa & E.J. De La Company to proceed with refunding of the 1993 Revenue Bond that was used to acquire Rosa & Co Azusa Valley Water Company. Rev Bond A RESOLUTION OF THE UTILITY BOARD/CIN COUNCIL OF THE CITY OF AZUSA, TO USE Res. 02-C137 THE DIRECT PAYMENT PROCESS FOR RECEIVING LIHEAP PAYMENTS FROM THE STATE OF LIHEAP CALIFORNIA. Payments Special Call Items Spec Call Items Councilmember Rocha questioned item II -C, regarding the $300,000.00 budget amendment for Rocha vehicle/equipment purchases. question Director of Utilities Hsu responded stating that during the preparation of the 2002-03 CIP budget, Dir of Util the Water Division listed the amount for anticipated purchases of necessary vehicles or equipment Response and the Finance Department opted to have future vehicle purchases listed as line Items In the Operations Budget and these amounts were subsequently removed from the CIP budget but never transferred to the Division's Operations Budget. Moved by Councilmember Rocha, seconded by Chairperson Chagnon and unanimously carried to Budget authorize a Budget Amendment in the amount of $300,000.00 for Vehicle/Equipment purchases. Amend Scheduled Items Assistant Director of Resource Management Tang, addressed the Boardmembers regarding the request for proposal for Long -Term Firm Power. In an effort to lessen the reliance on one unit contingent resource staff has recommended exploring opportunities to assign or exchange part of the City's San Juan entitlement with other entities and replace with an optimal amount of either a power resource (ownership) or a long-term power purchase contract. Discussions have been Initiated with the County of Los Alamos (LAC) of a San Juan assignment arrangement. Staff is seeking the authority to issue an RFP to solicit proposals for off-peak and on -peak energy to meet portions of its power requirement in the event San Juan Assignment arrangement is successful. The contracting of power under the RFP will be contingent upon the successful San Juan assignment arrangement with Los Alamos and the Utility Board approval. Moved by Councilmember Stanford, seconded by Chairperson Chagnon and unanimously to authorize staff to issue a Request for Proposal (RFP) to seek offers for long-term firm power. Staff Reports/Communications Sched Items B. Tang Comments RFP for Long Term Firm Pwr Staff Rpts Director of Utilities Hsu referred to the West Coast Arborists, Inc. annual Tree Maintenance Dir of Util Highlight Report, which featured City of Azusa Utility Department and its tree program. Tree Maint Director of Utilities Hsu advised that the Substation award and the reimbursement agreement for Dir of Util the Azusa Substation will be brought to the next meeting for consideration. Substation At this time discussion was held regarding the proposed meeting of December 23, 2002. It was Discussion consensus that the meeting be held as scheduled. 11/25/02 PAGE THREE 007 Director of Utilities Hsu provided an update regarding the Electric Office stating that they have Update -nn , s exhausted effort to obtain the property at 10th and Todd and asked if they could go forward with Electric the property on 10"' and Vernon. Discussion was held regarding the issue. Office building Director of Utilities announced that one of the City's Meter Readers, Fernando Vasquez, was Proc for second runner up in a National Meter Reader contest and requested that the Board recognize him F. Vasquez for his efforts. Director of Utilities announced that SCAPPA will be having an annual luncheon and invited all to Updates attend on December 19' at 1 1 a.m. Follow up on customer complaint, Mr. and Mrs. Cabrera SCAPPA was settled and he noted the update on business hours. Complaint & Bus Hours Discussion was held regarding proposed Holiday Hours for all City employees and it was Dis Holiday consensus of Councilmembers that the City be kept open on December 26' and January 2nd with Hours minimum skeleton crews. The Monthly Power Resources Update was presented. Directors' Comments Directors' Comments Assistant to the Director of Utilities Kalscheuer provided an update on the green barrel recycling Update on program stating that the program is going fairly smooth and there have only been a couple of Green complaints. City Manager Cole advised that some residents have asked for two barrels. Barrels Councilmember Stanford asked that the regular Council meeting be adjourned in memory of Ward Stanford Munson who recently passed away. Comments it was consensus of Councilmembers to recess to Closed Session to discuss the following: Closed Sess REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8). Real Prop Property: Ground water rights within the boundaries of the real property commonly known Negotiations as Monrovia Nursery in the City of Azusa. Negotiators: Miles Rosedale, Property Owner Rick Cole and Joe Hsu, City representatives Under Negotiations: Price and terms of acquisition CONFERENCE WITH LEGAL COUNSEL (Gov. Code Sec. 54956.9 (a). Conference Res. Care, Inc. v. City of Azusa W/Legal Case No. KC040062. Counsel The City Council recessed at 8:13 p.m. The City Council reconvened at 9:35 p.m. Rec/Rcvne City Attorney Carvalho advised that with regard to Res Care claim, staff was authorized to file a Rpts cross complaint against L.A. County Fire It was consensus of Councilmembers to adjourn. TIME OF ADJOURNMENT: 9:36 P.M. SECRETARY NEXT RESOLUTION NO. 02-C138. Adjourn 11/25/02 PAGE FOUR 008 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: DECEMBER 23, 2002 SUBJECT: WAIVE FORMAL BIDDING PROCEDURES AND AWARD PURCHASE OF JOHN DEERE BACKHOE TO COASTLINE EQUIPMENT UNDER CALIFORNIA MULTIPLE AWARD SCHEDULE (CMAS) RECOMMENDATION It is recommended that the Utility Board/City Council waive formal sealed bids in accordance with the Municipal Code Section 2-522, sub -section C, and award the purchase of a John Deere Backhoe to Coastline Equipment under the California Multiple Award Schedule (CMAS Contract No. 4-01-38-0012A) in the amount of $56,949.73, including sales tax. This backhoe is to replace the following Water Division equipment: 1989 580K Case Backhoe BACKGROUND Since the existing backhoe no longer provides satisfactory service, staff members have conducted a survey and participated in demonstrations of new equipment from various vendors to replace it. It should also be noted that the City's Street Division recently obtained a similar backhoe under the CMAS Schedule from Coastline Equipment. FISCAL IMPACT Fiscal impact will be $56,949.73 including applicable sales tax. Funds are available In the Water Divisions Vehicle Replacement CIP Budget. Prepared by: Phyllis Bradley Administrative Services Supervisor 00�c T, T J^ CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: DECEMBER 23, 2002 SUBJECT: ADOPT SPECIFICATIONS &AUTHORIZE FORMAL BIDDING FOR HYDRO EXCAVATION (VACUUM) TRUCK RECOMMENDATION it is recommended that the Utility Board/City Council adopt the accompanying specifications and authorize the commencement of the formal bidding process for one Hydro Excavation (Vacuum) Truck. BACKGROUND In order to comply with regulations established by the National Pollution Discharge Elimination system (NPDES), the Federal Water Pollution Control Act (also referred to as the Clean Water Act (CWA)) and the U.S. Environmental Protection Agency (EPA), it Is necessary to prevent pollutants from discharging, either directly or indirectly through municipal storm drains, into state surface waters. During periods of water main line construction and/or repairing damaged water lines, pollutants such as mud and other debris can Flow into the municipal storm drains possibly resulting In substantial fines and penalties. By utilizing the Hydro Excavation (Vacuum) Truck, these pollutants can be removed from the site and disposed of in a proper manner. This same vehicle can also be used to remove the silica sand from the treatment plant filtering beds, resulting in considerable savings each time replacement of this filtering material is deemed necessary. It can also be used during the 'annual cleaning and removal of sludge from the Flocculation and sedimentation basins. 010 FISCAL IMPACT Fiscal impact is estimated to be $195,000.00 which has been budget in the Water Division's Vehicle Replacement budget. Prepared by: Phyllis Bradley Administrative Services Supervisor Oil NOTICE INVITING BIDS PUBLIC NOTICE IS HEREBY GIVEN that the City of Azusa, County of Los Angeles, State of California, will receive at the office of the City Clerk, City Hall, 213 East Foothill Boulevard, Azusa, California, up to the hour of 10:00 a.m. on Tuesday, January 21, 2003, sealed bids for the following: (1) 2003 Hydro Excavation (Vacuum) Truck. 10 Cubic Yards Tank Body Capacity Specifications and bid forms may be obtained at Azusa Light & Water office, 729 N. Azusa Ave., Azusa, CA 91702 No bid shall be considered unless it is made on a bid form provided for that purpose, sealed and riled with the City Clerk at the above address on or before the time specified for filing bids. Bids will be publicly opened and declared in the office of the City Clerk at 10:00 a.m. on Tuesday, January 21, 2003. Action will be taken on these bids at the regular meeting of the Utility Board/City Council of the City of Azusa on Monday, January 27, 2003. Azusa Light & Water reserves the right to reject any and all bids or parts thereof; and to waive any informality in such bids. VERA MENDOZA, City Clerk Publish: Azusa Herald: 012 CITY OF AZUSA BID FORM (1) 2003 Hydro Excavation Truck. 10 Cubic Yards Tank Body Capacity Note: All prices to include destination charges, handling charges, taxes and all preparation. (Words) (Figures) Bidder's Name Address City, State, Zip Code Telephone Authorized Signature Date 013 HYDRO EXCAVATION TRUCK SPECIFICATIONS Tank Body Capacity: 10 Cubic Yards It is the intent of these specifications to obtain a unit suitable for the service demands of the Department involved. The unit will be used in an Excavating Application. It will use high-pressure water to loosen soil and dig around utility lines. While using a positive displacement blower to convey the soil into the debris tank, the unit must have the ability to vacuum depth of 75'. All work and material furnished shall be subject to the approval of the Purchasing Agent, Shops and Using Division. The body, finish and fittings shall be the latest model, shall not have been used in demonstrator or other service and shall be factory standard in all respects not in conflict with the following specific requirements. Manufacturer's standard equipment and all devices necessary to comply with the State of California Vehicle Code, the California Administrative Code and the Federal Motor Vehicle Safety Standards will be included. Vehicle must comply with all California Motor Vehicle Pollution Control Board Requirements. All vehicle(s) will be serviced, cleaned and ready for immediate operation when delivered. Due to high ambient temperatures and to assure long life, the unit must be designed to operate at maximum performance levels with a minimum of 20% reserve horsepower. Model 101", BBC Mid -Range 4X2 (1,7501) Wheel Base WB = 221", CA =152 ", AF = 75" Engine Cat 3126B Electronic, 275 HP, 2400 RPM Transmission Allison MD3060P, 6 -Speed Electronic, Automatic Front Axle 18,000 lb Front Axle Rear Axle 23,000 lb Mentor RS -23-160, Steel 1S Axle Ratio: 6.43 Paint Special White GAWK: Front: 18,000 lb, Rear: 23,000 lb GVWR: Frame: 41,000 lb, Total: 41,000 lb Est. Weight Front: 7,238 lb, Rear: 5,112 lb ELECTRONIC ENGINE CONTROL Soft Cruise Control 014 ENGINE EQUIPMENT Cat 3126B-275/ 275 hp @2200 rpm; 2400 Gov. rpm; 800 LB/FT @ 1440 rpm 98 EPAICARB Oil Check & Fill: Engine Mounted Air Intake: Dual Through LH & RH Sides Of Hood W/Firewall Mounted Donaldson Air Cleaner Air Cleaner: Donaldson i -Stage Alternator: 130AMP Delco 22 -SI Batteries: (2) 12V Alliance G31, 1900 CCA W/Stud Posts Battery Box: Steel Frame Mounted LH Under Cab W/L.ong Side To Rail Compressor: Bendix 13.2 CFM Series550 Engine Protection: Electronic Engine - Integral Warning System & Derate Exhaust: Single RH Stationary, Vertical Cab Mounted Exhaust Height: 10' 3" Exhaust Piping: Curved Tail Pipe Muffler Shield: Aluminum Muffler/Tail Pipe Shield Fan Drive: Kysor K22RA On/Off Rear Air Engine Fuel Filter: Spin On Full Flow Oil Filter Radiator: 830 Sq. In. Copper/Brass W/Additional Cooling Capacity Heavy Duty Coolant: Ethylene Glycol, Pre -Charged SCA To —30F Coolant Hose: Gates Blue Stripe Hoses Where Possible Constant Torque Clamps: Constant Torque For Coolant Hose, 1" Inside Diameter & Larger Radiator Draincock Flywheel Housing: Iron Glow Plug: Air Intake Starter: Delco 12V, 41 MT 400 Warmer Series Type Front Engine Mounts Engine Supports: Compression TRANSMISSION & EQUIPMENT Transmission: Allison MD3060P, 6 015 Speed 6 -Speed Premium Utility E MD/HD Transmission Programming Transmission Interface Connector: Fill/Drain Plug: Magnetic Plugs, Engine Drain, Shift Lever: Electronic, Transmission Drain, Axle (5) Tunnel/Floor Mounted Transmission Oil Cooler: (1) Water -To - Oil, (1) Air -To -Oil, Transmission Mounted Transmission Rear Support FRONT AXLE & SUSPENSION Mentor 18,000 Lb., Front Axle Front Brakes: Mentor Cam 16.5X6 Q+ Front Brake Linings: Non -Asbestos Front Brake Drums: Outboard Mounted, Cast iron Front Brake Dust Shields Front Oil Seals: Stemco Guardian High Performance Front Auto Slack Adjusters: Gunite TRW -TAS -65 Gear W/RCS55 Aux. Gear Front Suspension: Flat Leaf@ 18000# Spring Pin Bushings: Bronze King Pin Bushings: Standard REAR AXLE & SUSPENSION Rear Axle: Mentor RS -23-160, 23,000# 6.43 Rear Axle Ratio Rear Axle Carrier Housing: Iron Main Drive Line: Dana Spicer 171 OHD W/Half Round Yokes Rear Brakes: Mentor Cam 16.5X7 Qf Rear Brake Linings: Non -Asbestos Rear Brake Drums: Conmet Cast Iron, Machine Balanced Outboard Mounted Rear Brake Dust Shields Rear Axle Oil Seals: Chicago Rawhide Parking Brake Chambers: Midland Tamperproof, One Axle Rear Auto Slack Adjusters: Gunite Rear Suspension: 24,5004 Sterling Multi - Leaf Spring W/Four Leaf Helper Axle Clamp: Standard U -Bolts 016 BRAKE SYSTEM EQUIPMENT Anti -Lock Braking System: Meritor- Wabco- 4 Sensor/4 Modulator Chassis Air Lines: Reinforced Nylon, Fabric Braided And Brake Valves; Standard Relay Valve W/3-4.5 PSI Wire Braided Rear Service Brake Valve: Combo ABS W/4 PSI Crack Pressure Air Reservoirs: Steel Air Tank Drain Valves: Petcock On All Air Tanks FRAMES & WHEELS 221' Wheel Base/152" CA Frame 7/16" X 3 5/8"X 10 3/8" Steel 75 In. Overhang End Frame: Square Midship Cross Member: Steel C -Channel WBolted Construction Rearmost Cross Member; Standard CHASSIS EQUIPMENT Omit Front Bumper Chassis Fasteners: Grade 8 Frame Fasteners FUEL TANKS & EQUIPMENT RE Fuel Tank: 55 Gallon/208 Liter, Rectangular, Steel LH Fuel Tank: 30 Gallon/113 Liter, Rectangular, Steel Fuel Tank: Rectangular Steel Fuel Tank Bracket Material: Fuel Tank & Band Finish; Plain Aluminum! Painted Steel Fuel Tank W/Painted Bands Fuel Tank Location: RH Tank Mounted Forward, LH Tank Mounted Aft Fuel System: Equiflo Inboard Fuel Hose: Braided Fabric Reinforced FRONT TIRES, HUBS & WHEELS Michelin XZA1 31 5/80R 22.5, 20 Ply, 1 8,000# Rating 4 017 Front Hubs: Hayes Lemmerz, Iron Front Wheels: 22.5 X 9.00 Stl Acc HP 10, Part Number 29039, 20,000# Rating Front Wheel Nuts: Metform 39702, 33mm/i .30" H -P REAR DRIVE TIRES, HUBS & WHEELS Michelin XDN 1 1R22.5, 14 Ply, 23,000# Rating Rear Hubs: Hayes Lemmerz, Iron Rear Wheels: 22.5 X 8.25 Stl Ace HP 10 Rear Wheel Nuts: Metform 39702, 33mm/1.30" H -P CAB EXTERIOR Cab: 101" BBC Conventional Steel Cab Mounts: Rubber Fender Extensions: 5" Grab Handle: LHRH Exterior Grille: Painted Plastic, Hood Mounted Hood: Aerodynamic Electric Horn: Single Headlights -Single Round W/O Bezel Marker Lights: Aerodynamic, Small Stop/Tail/Tum Lights: Grote, Flush Mounted Inside Frame Rail Turn Signal: Front Lamps Primary Mirrors: Painted 7" X 16" West Coast Door Mounting Of Mirrors Trailer/Body Width: 96" For Mirrors Auxiliary Mirrors: LHRH 5.5 Painted Convex Mounted Below Primary Mirrors Rear Window: (2) 15„ X 26" Tinted Door Windows: Tinted W/Operating Door Wing Window Window Regulators: Manual Windshield: Tinted Windshield Washer Reservoir: 8 Liter CAB INTERIOR Interior: Value Sahara LH Upper Door Trim: Molded Plastic M RH Upper Door Trim: Molded Plastic Floor Mats: Dark Taupe Vinyl W/Single Insulation Dash Mounted Ash Trays & Lighter Heater And Defroster: W/Air Conditioner W/Recirculation Switch Heater Plumbing: Standard W/Shut-Off Valves A/C Compressor: Sanden Compact A/C Condenser: Radiator Mounted A/C Plumbing: Binary Control R -1 34A Refrigerant Electrical: Circuit Fuses Wiring Schematic Card: None, 12V Negative Ground System Interior Lights: Center Mounted Dome & Door Courtesy Lights In Kick Panels Door Latch: W/Manual Locks Driver Seat: EZRIDER-Mid-Back Air Suspension W/Adjustable Lumbar Support Passenger Seat: EZRIDER Mid -Back Non -Suspension Driver Seat Cover: Vinyl W/Vinyl Insert Passenger Seat Cover: Vinyl W/Vinyl Insert Seat Belts: 3 Point Adjustable D -Ring Retractor, Driver & Passenger Steering Column: Fixed Steering Wheel: 18" Two -Spoke, Black Interior Sun Visors: Driver/Passenger INSTRUMENT PANELS & CONTROLS Gauge Package: Sterling Standard Electronic Instrument Package, Standard Calibration Instrument Cluster: W/Integral Gauges Center Panel: Dark Taupe W/Flat Gauge Insert Low Air Pressure Warning: Light & Buzzer Air System Gauge: Dual Needle Primary & Secondary Air Pressure Gauge Air Restriction Indicator: Intake Mounted Cruise Control: Switches In Steering Wheel Spokes Starter Control: On/Run/Start/Acc. 6 019 PAINT Message Center: Warning Lamp/Light Bar Display, Non -Data Linked Fuel Gauge: Electric Pre -Set Fast Idle Switch Water Temperature Gauge: Electric Engine Hour Meter: Hobbs, Integral W/Tachometer, Oil Pressure Activated Oil Pressure Gauge: Mechanical Radio: Sterling AM/FM Stereo Radio Speakers: (2) Cab CB Antenna: Multi -Band AM/FM! WB/CB Left Hand Mirror Mounted Speedometer: Ametek Electronic W/Odometer (MPH) Tachometer: Electronic 3500 RPM Hand Control Valve: None Voltmeter Windshield Wiper System: Electric W/Delay Parking Brake System: One Valve System W/Waming Indicator Tum Signal Switch: United Tech Self - Canceling Turn Signal Flasher: Heavy Duty One Solid Color Design Cab Color: A: Imron N0006 White Chassis Color: Black: High Solids Polyurethane Front Wheel Color: N1047 White Rear Wheel Color: N 1047 White ADDITIONAL SPECIFICATIONS Factory PDI Cat EPA Upgrade VACUUM SYSTEM To be capable of conveyance of wet, slurry and submerged' materials. 18" Positive displacement blower must operate completely independent of water pump pressure and flow. 4,500 CFM and 18" Hg vacuum at 2000 RPM. 020 Drive by means of transfer case from chassis engine. Hydrostatically driven blowers are not acceptable. Transfer case to be connected to positive displacement blower by drive shaft without the use of belts. Engagement by means of air shift mechanism. Transfer case shall be capable of being turned on and off at the front bumper. This will allow the operator to minimize drive train operation between operation changes in the job. Intake tube size - 8" inside diameter. Adequate hoses to excavate to a depth of 22 feet below grade level. All extension tubes to be aluminum tube. A serrated nozzle will be provided. Connections of extension pipes to be adjustable over -center type clamps. Adequate clamps to be supplied. A formed steel elbow shall be used as the transition from vertical to horizontal. Additional heavy duty steel tube to be used horizontally to eliminate wear. A minimum amount of flex hose shall be used to reduce weight and increase life. Vertical section to be flexible host approx. 5 1/2' in length. Front mount with hydraulic power up, down and hydraulic rotation by hydraulic cylinder(s). Boom to have provisions for manual over hydraulic operation in emergency situation. Boom and hose will release from debris tank when dumped to aid in cleaning. All hydraulic components to be mounted below top of body to protect them from damage Rotation: 180 degrees minimum. Lift: 16 foot, 6 inch vertical. Lift Capacity: 700 pounds minimum Reach: Vacuum hose shall be able to reach a minimum of 20 feet from vehicle center -line and 16 feet from edge of vehicle. Hydraulic System: Power to be supplied by means of engine driven pump with minimum capacity of 8 GPM. Main hydraulic tank will be used as supply source for hydraulic pump. Hydraulic Extendable Boom: The vacuum pick-up hose boom shall be provided with an extendable section that will provide an additional 4 feet of extension to the standard boom. The system shall consist of a fully enclosed and protected hydraulic cylinder with controls located for convenient operator access. An 8 inch hose assembly incorporating water and 021 air tight end seals to allow for a extension effect of the vacuum hose shall be provided. A heavy duty 8 inch rubber hose on a formed guide shall be provided as the transition piece from vertical to horizontal direction of vacuum hose. The boom movement shall be controlled by a handheld pendant control. The control will include self -centering switches for all functions of the boom movement. An additional joystick style control will be permanently installed on the hose reel. Boom controls will include an emergency stop button to halt all boom movement in case of emergency. Worklight on the boom for night operation. Air filtration gravity, with expanded metal steel screen or acceptable equal. Tank body capacity: 10 cubic yards. Material construction: 3/16" abrasion and corrosion resistant steel "Ex -Ten" or equal. Load discharge. A single front mount 6" multiple stage hydraulic body dump cylinder. Body dump hoist will lift to 50 degrees to thoroughly discharge all contents of debris tank. Dump cylinder to be power up and power down. Hoist to be powered by chassis driven pump. Controls for dump to be located at forward part of body out of way of discharging debris. Liquid level indicator needle indicator by internal float. Stainless steel and brass construction for dependable operation. An audible alarm will sound when the body becomes full. Alarm to b e equipped with On/Off switch at auxiliary engine control panel. A stainless steel ball -float check valve shall be provided to automatically halt the vacuuming process when the debris tank reaches the full load limit. It shall be mounted internally and shall flat free in a cage suspended from the exit air opening. All electrical routing on debris tank to be protected by and run in conduit. All lighting to be rubber insulated and all connections completely air tight "Trucklite" or equivalent. Discharge Gate - 1/4" thick steel tailgate, full opening, circular, top hinged. Door to be equipped with permanently affixed door prop. Door to be of a design that will not allow it to make contact with the ground when in the full 50 degree dump position. Hydraulic door 1 ock mechanism shall be provided. The system shall be operated from the side of the truck. The system shall be designed as a sequential door grabber to engage locks without manual latches or screws requiring manual latching or loosening prior to door lock activation. System to be designed as a failsafe system - if hydraulic pressure or system failure is experienced the door lock mechanism will remain locked. 9 022 Gasket Rear Door - Neoprene replaceable 2" diameter minimum. Tank Drain - Tank to be equipped with a rear drain of minimum size of 6" with a butterfly valve that shall be installed in the discharge door. A 10' lay flat hose will be attached with storage rack convenient to operator. The debris body shall be fixtured on an independent frame that is separate from the chassis frame. It shall be mounted via a 3 -point mounting system to allow flexing to occur without causing damage. The unit will be equipped with a 6" front mounted drain system. The drain will be located at the front of the body to provide adequate debris / water separation. The drain plumbing will allow for the syphoning effect of the water to allow maximum liquid removal from the debris tank. A hinge screen will surround the discharge drain plumbing to aid liquid separation. Mounted on the exterior of the body will be a 6" air actuated knife valve to insure an air right seal. A 10' section of lay flat hose will be affixed to the drain by means of a camlock fitting to allow for removal when drain is not in use. A splash shield will be located at bottom of rear door opening to deep rear bumper clear of discharging debris. The system will be designed to not make contact with the ground during dump operations. Debris body vacuum relief system mounted in airflow with control mounted on hose reel and pendant control. HIGH PRESSURE WATER SYSTEM Hydraulically driven Triplex water pump rated at 5GPM @ 2000 PSI to be used to safely loosen and dig soil in areas where space is confined. By using high pressure water it allows the unit to locate utilities safely without taking the chance of damaging the utilities. TANK — FRESH WATER Capacity - 1,000 gallons minimum. There shall be no common walls with debris tank. An approved anti -syphon system to be supplied. The filler pipe must be a minimum of 2 times the filler pipe diameter as the distance from the fill hose to the water tank. Tank(s) to be manufactured of aluminum and shall be cylindrical in design. Tank capacity to be 100% useable and certification of tank capacity shall be included. Water tank to be equipped with low water alarm with warning light at operators station. 10 023/ Water tank to have a ten- (10) year warranty. The aluminum water cells shall not require internal coatings and shall be easily repaired or patched if required. The water cells shall be located directly behind the cab of the truck and ending at the very rear of the unit, thus providing the best possible weight distribution. 50 feet of 1/2" hose. Deadman controls. Quick disconnects both at front and rear of unit. Spring, retractable hose reel located at the front bumper for operators convenience. A folding swing down bracket mounted to side of debris body to store aluminum vacuum tubes at curb side of the truck. Equipment storage: Lockable tool box, side mount 36" x. 18" x 18". (Dimensions are approximate.) Hydraulic tool circuit - A system will be supplied that will allow for the use of hydraulic tools (such as - hydraulic pavement breakers, water pumps, etc). The system will supply approximately 8 GPM at 2,000 PSI. A spring -retractable hose reel for the hydraulic tools shall be mounted on the front bumper. Adjustable hydrant wrench. Hand Light - heavy duty "Specialty Lighting" or approved equal with 15' of H.D. double cord coiled hose and plug receptacle located at front bumper. PAINTING Complete unit cleaned with all weld slag removed. Cleaning to be in keeping with good and accepted industry practices. A good high-grade polyurethane primer shall be applied followed by a finish coat of high quality Imron paint. All paint shall be properly applied and cured in accordance with manufacturer's recommended procedures. 11 024 Frame to be painted black. Balance of truck and body to be primed and painted white to match cab. Water tanks to be natural aluminum finish. SAFETY DEVICES Fire extinguisher with standard spring clip bracket shall be installed in cab. Must comply with UL rating 10ABC. SAFETY LIGHTING: Whelen Light Package (4) - Comer strobes - 2 front fender (52GB20AV), 2 rear side (MC100SI). (1) Light Bar 52" mounted on. cab - 9004/SLI9Aly (1) Rear mounted TA 870 72" Arrowstick w/ control in cab. Grip handles and grip pads will be supplied wherever any climbing is required. Cab protection by means of heavy duty 2" square tubing running the width of the cab mounted to cleaning unit. Cab attachment not acceptable. A rear mounted back up alarm is to be mounted and activated automatically upon backing unit. PLEASE STATE THE FOLLOWING Dollar value of parts on hand at local dealer. MISCELLANEOUS One each complete parts, operating and maintenance manuals for sewer equipment. Parts manual will be professionally prepared and have detailed description of all body components. Parts book will be dated and serialized to the individual unit being purchased. Due to manufacturer's changes in designs, any parts book which is published more than six (6) months prior to unit production will require approval prior to delivery and payment. A 1% fee will be withheld until appropriate parts books are received. Pre -Production Meeting- A meeting between manufacturer and city will be arranged after award to finalize all mounting locations and installation details. Detailed line drawings will be supplied by manufacturer to identify all details. . This vehicle is considered as an emergency response vehicle therefore 1 ocal s ervice and 12 025 parts availability is of major importance. Vendor must be able to display local supplies and service representation to the city. In addition the unit must be available for use after downtime report to vendor within 72 hours, local response to downtime incident must be within 24 hours. The citywill examine first hand all service capabilities of vendor. Bidder must provide a factory -trained representative to the City to train the employees for a maximum period of 16 hours after receipt and acceptance of equipment. Parts and emergency service shall be available within the County area for the vacuum/jet rodder. Bidder Shall submit a list of factory trained service personal and dollar value of parts and local service facility within fifty miles of city. Bidders shall submit detailed literature of the vehicle they propose to Punish. Failure to submit this information is sufficient cause for rejection of bid. Vendor shall be responsible for application of California Vehicle Registration, exempt plates and weight certificates. Exempt plates are to be affixed to the unit prior to delivery. Exceptions to Specifications: The fact that a manufacturer chooses not to produce equipment or material to meet these specifications will not be considered sufficient cause to adjudge these specifications as restrictive. Bidder shall offer the equipment or material, which comes closest to meeting these specifications. Where deviations from the specifications contained herein are necessary, the bidder shall note such deviations. Bidders shall state why, in their opinion, the equipment or materials they offer will render equivalent reliability, coverage and performance. Failure to detail all such deviations will compromise sufficient grounds for rejection of the entire proposal. I. Award Criteria: The evaluation of proposals will be based on but not limited to the following: 1. Conformance to specifications 2. Price 3. Delivery 4. Warranty Award will be made to the lowest responsive / responsible bidder meeting specifications. Any deviation from the technical specifications above must be explained in detail. Simply stating "Exceeds Specifications" is not an acceptable response. 13 026 r�1 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES` J_ DATE: DECEMBER 23, 2002 SUBJECT: APPROVAL OF $80,000 AMENDMENT TO BLANKET PURCHASE ORDER TO UPPER SAN GABRIEL VALLEY MUNICIPAL WATER DISTRICT RECOMMENDATION It is recommended that the Utility Board/City Council authorize an amendment in the amount of $80,000 to the Blanket Purchase Order issued to Upper San Gabriel Valley Municipal Water District (USGVMWD) for the fiscal year ending June 30, 2003. BACKGROUND At its regular meeting on October 28, 2002, the Utility Board/City Council approved an Agreement to provide a connection at Upper San Gabriel -8 (USG8) to Suburban Water Company (Suburban), thereby allowing them to buy water from Metropolitan Water District. Under the terms of the Agreement, the City's Water Division will be billed by USGVMWD for all water used at this connection. In turn, the Water Division will submit an invoice to Suburban for recovery of their water costs, plus a 6% administration and operation surcharge with the minimum surcharge being no less than $6,000 per month. This connection has been completed and water service to Suburban is currently being furnished at a rate of 6 cubic feet per second. The estimated cost of water through this connection for the month of December is $80,000. _ FISCAL IMPACT There will be no negative fiscal impact as all water costs will be reimbursed by Suburban. Additionally, all monthly surcharge amounts will be transferred to the General Fund. Prepared by: Phyllis Bradley Administrative Services Supervisor 027 M CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES Y DATE: DECEMBER 23, 2002 p SUBJECT: CONSULTING SERVICE AGREEMENT FOR SEWER -LINE IMPROVEMENTS PROJECT RECOMMENDATION It is recommended that the Utility Board/City Council approve a Consulting Service Agreement for the Sewer -line Improvements project for RCE Consulting Engineers in the amount of $128,805. BACKGROUND In the current year CIP budget, $800,000 in Sewer Funds have been appropriated for the much needed sewer line upgrades. RCE Consultants prepared the City's Sewer Master -plan in 2001. And as part of the same report, system deficiencies were noted and improvement strategies recommended. In the current CIP budget, design and construction drawings for sewer line upgrades are scheduled in the following streets and one alley: • Enid Avenue, from Gladstone to Grandview, 780' •. Calera from Mauna Loa to Alosta, 1620' • Mauna Loa, from Calera to Citrus, 1500' • Azusa (in the alley between Azusa and San Gabriel), from First to Foothill, 5100' - All sewer -line upgrade lengths are shown above and the indicated lines are 8 Inches in diameter. The City's Sewer Master plan has identified these lines as deficient and 0 • r. recommended increased pipe sizes to, 12 nand 15 inches. The consultant will review the Master plan recommendations and propose improvement strategies. Where possible, as part of the sewer upgrades, the streets and alleyways will be re -paved and/or re -constructed. The RCE proposal fee is a not -to -exceed sum of $128,805. Request for Proposals On November 12, 2002, staff circulated request for proposals on this project. From Engineering consulting file, four companies were contacted for proposals: Korve Engineering, HDR, Montgomery Watson, and RCE Engineering. On December 3, 2002, only two responses were received. Montgomery Watson responded with a letter that they were not able to submit a proposal and RCE Engineering submitted a proposal, with a sealed bid. Staff has evaluated the proposal and determined the company as responsive with competitive bids. FISCAL IMPACT The consultant fees were included in the CIP budgets listed for both projects. Prepared by: Nasser Abbaszadeh, City Engineer Attachment: Proposal Summary & Fee 029 Section 2 Project Approach and Scope of Work Understanding of the Project RCE Consulting Engineers has reviewed the project information provided in your Request For Proposal (RFP), met with City personnel, and field reviewed proposed pipeline alignment. Thus, we believe that we have a excellent understanding of the goals and objectives of the project. The City is desires the following: 1. Complete construction drawings for the project 2. Construction specifications 3. Bid documents (contract boilerplates) 4. Cost estimate RCE will perform due diligence and provide the following: a. Project Management and meeting b. Record search and archival investigation c. Field investigations and flow observations d. Soils and geotechnical investigations e. Compilation of utility information f. Review of pavement conditions g. Survey and field notes h. Review of master plan recommendation L Interview with City staff for their input into the process j. Pipe hydraulic review and investigation k. Preliminary design, and pipeline alignment 1. Submittal to City for review and comment m. Final design n. City comments o. Final PS&E to the City The design phase of a sanitary sewer project comprises the preparation of construction plans and specifications. These documents form the basis for bidding and performance of the work; they must be clear and concise. Design, therefore, consists of the elaboration of the preliminary plan to include all details necessary to construct the project. 4 030 The City has stated the following goals in the RFP: "...The design and construction drawings for sewerline upgrades and/or replacements in the following streets: ➢ Enid Avenue, from Gladstone to Grandview, 780' in length ➢ Calera from Mauna Loa to Alosta, 1620' in length ➢ Mauna Loa, from Calera to Citrus, 1500' in length ➢ Azusa (in the alley between Azusa and San Gabriel), from First to Foothill, 5100' in length All upgrade lengths are approximate and indicated lines are 8 inches in diameter. The City's Sewer Master plan has identified these lines as deficient and recommended increased pipe sizes to 12 and 15 inches. The consultant will review the Master plan recommendations and propose improvement strategies. Where possible, as part of the sewer upgrades project, the streets or alley -ways will be re -paved 'or re- constructed in consultation with the City." Proect Approach Successfully addressing the project issues, which are key to the preliminary design effort, requires a comprehensive approach as well as a sound technical approach. Based on the above understanding of the project, we have developed a tailored management approach to accomplish your objects. Specific elements include: ✓ Collaboration and coordination with the City ✓ Involving the City throughout the preliminary design efforts ✓ Building from the master plan recommendations ✓ Pavement replacement strategy in project areas The above key elements will result in: 1. Complete construction drawings for the project 2. Construction specifications 3. Bid documents (contract boilerplates) 4. Cost estimate 5 031 Technical Approach In an effort to describe the potential issues affecting the project, we have divided our discussion into areas that will impact the preliminary design and potential alignments. • Uninterruptible Service We understand that the lines are active and in use. The current service cannot be interrupted and the community will need to enjoy the benefits of the sewer lines throughout the construction phase. • Confirming the condition of existing lines The existing lines will be examined, their current flow characteristics studied, and the manhole structures reviewed. • Design strategies We will consider replacement pipes as well as parallel, relief lines where it may result in least disruption as well as cost savings. • Traffic impacts during construction Impacts to the traveling public will be examined to reduce detours and interruptions. • Utility conflicts We will ascertain that utility conflicts are either minimized and/or avoided wherever possible. • Impacts on the community and residents Impacts to residences and businesses will be addressed in the preliminary design stage to minimize impacts during construction. 6 032 • Alternative pipeline materials Vitrified clay pipe (VCP), reinforced concrete pipe, and vylon pipes are potential pipeline materials. VCP is available in pipe diameters from 4 - inches to 42 -inches. Vylon pipes are more cost effective for pipe diameters over 21 inches. We will explore the possibility of bidding the project with alternative pipe materials to compare the bottom line cost issues. • Inter -tie options This is the simplest and least expensive method of dispersing flows. The line connecting the sewers would be set at a slope and elevation to maintain a % full flow depth in each line. The advantages of this option are simplicity and low cost. The disadvantage of this system is that once construction is complete, there is little flexibility should more flow control be desired (to perform maintenance on a parallel sewer -line). • Construction challenges Where groundwater and existing utilities are present in multiple numbers, construction of a new pipeline will become a challenge. Such areas require greater attention to detail to address conflicting issues. • Pavement reconstruction The City desires to re -build sections of roads and alleyways as part of this project. The City's pavement management plan will be consulted to ensure compliance with the City's long-term pavement rehabilitation goals. 7 033 • • • The following is a detailed scope of work to provide preliminary and final designs. RCE will perform due diligence and provide the following: a. Project Management and meetings The Principal in charge will maintain day-to-day contact with the City and will be responsible for budget, schedule, and quality control. He will conduct plan reviews and direct Project Team in completing the assignment. b. Record search and archival investigation As built drawings and information relative to each line will be obtained to aid in the design process. c. Field investigations and flow observations Project locations .will be closely inspected to gather information about flow characteristics as well as pavement types and conditions. d. Soils investigations We will perform a geologic reconnaissance and preliminary geotechnical evaluation of the subsurface conditions along the proposed sewer alignments. e. Compilation of utility information Each utility owner in the City of Azusa will be contacted for their records on their utilities in the project areas to avoid conflicts. f. Review of pavement conditions Pavement type and condition will be4mammed for each area. City input will be sought for replacing pavements. g. Survey and field notes Necessary field data and survey notes wile be collected to establish horizontal and vertical controls for the project. 8 034 h. Review of master plan recommendations The current master plan will be reviewed and consulted for pipe replacement recommendations. We will build upon the master plan to perform the preliminary design. L Interview with City staff for their input into the process The City staff will be consulted initially and throughout the project for their information and comments into the design process. J. Pipe hydraulic Alternative analysis will include recommendations on the proposed new diameters to handle the current and future flows. IL Preliminary design RCE will develop the design criteria to be used as the basis for evaluating pipeline alternatives to govern the project design. 1. Design evaluations The design criteria will include the following parameters: ✓ Confirming hydraulics, such as flow rates, load points, and grade lines. ✓ Confirm hydraulic constraints, such as upstream and downstream control elevations. ✓ Sewer sizing based on flow rates, slope requirements, scour velocity, pipe roughness, and hydraulic grades. ✓ Sewer pipe materials based on cost, pipe diameter, soil conditions, and trench conditions. ✓ Requirements for connections to existing facilities. ✓ Parallel sewer lines or line replacements will be evaluated and included in the design. m. Submittal to City for review and comment Eighty percent drawings will be submitted to the City for review and comments. 9 035 n. Permits RCE will work with the LA County Sanitation District to obtain the necessary permits to connect the new lines to the County system. o. Quality assurance We will provide quality assurance and quality control reviews through the course of project consistent with RCE policies on project quality. ' p. Traffic control Construction notes and progress will include an adequate traffic control plan to increase safety and minimize public inconvenience. q. Final design Ninety nine percent plans will be submitted to the City for final comments. r. City comments City comments will be evaluated thoroughly to either be reflected on the construction drawings or responded to in writing. s. Final PS&E to the City The final plans and technical specifications will be submitted to the City with a list of construction bid items. A detailed estimate of the construction contract items will accompany. the plans and specifications. 10 036 RCE Consulting Engineers CITY OF AZUSA SEWER UPGRADES PROJECT 1.2 Communications 45 10 80 $ 8,225.00 1.3 Subconsultant Coordination 30 20 $ 3,650.00 1.4 Utility Coordination 40 10 20 $ 5,350.00 1.5 Scheduling 30 10 5 $ 3,800.00 1.6 Cost Control 25 35 10 $ 5,400.00 1.7 Qa/Qc 40 170 5 $ 16,750.00 1.8 Value Engineering 35 10 1 5 $ 4,275.00 2 Field Reeonnaissace, Data Collection -Utility Search 2.1 Field Reconnaissace 10 25 60 4 $ 6,285.00 2.2 Data Collection - Utility Search 6 37 25 $ 4,345.00 3 Surveying and Mapping 10 35 110 $ 7,000.00 $ 16,625.00 4 Geotechnical investigation 2 10 $ 6,500.00 $ 7,440.00 5 Technical Memoranda 10 10 5 $ 1,900.00 6 Submittal 6.1 80% Plans 35 80 80 $ 13,725.00 6.2 180% 80% Specifications 35 70 50 $ 10,575.00 6.3 80% Cost Estimate 12 25 $ 3,015.00 790°/. Submittal 7.1 90% Plans 30 55 30 20 $ 9,425.00 7.2 90% Specifications 10 35 20 $ 4,375.00 7.3 90% Cost Estimate 2 7 1 2 1 $ 795.00 8 1100% Submittal 5 5 5 1 10 $ 1,525.00 9 Final Design Submittal 5 5 5 1 5 $ 1,325.00 Subtotal 417 644 1 290 286 $ 13,500.00 $ 128,805.00 Average Hourl Billin $ 95.00 1 $ 75.00 1 $ 55.001$ 40.00 .rw wwrrw ■1M° MP L AI @ 49Q QnG nn 1 V IAL IYV 1 1 V I..AV a Iw1 v,r w ._-1------ c Pf ©MWH MONTGOMERY WATSON HARZA December 3, 2002 Nasser Abbaszadeh, P.E. City Engineer City of Azusa 729 N. Azusa Avenue Azusa, CA 91702 Subject: Request for Proposal — Sewerline Upgrades Dear Mr. Abbaszadeh: Montgomery Watson Harza very much appreciates being included on your distribution list for the subject Request for Proposal (RFP). Unfortunately, the timing is such that we will be unable to respond with a proposal. We continue to look forward to other opportunities to support the City in the future. Sincerely, MWH Americas, Inc. Geoffrey A. Carthew, P.E. Vice President Pasadena Regional Manager 301 North Lake Avenue Tel: 626 796 9141 Delivering innovative Projects and Solutions Worldwide Suite 600 Fax: 626 568 6101 Pasadena. California �J '7 Q 91101 V r CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: DECEMBER 23, 2002 SUBJECT: AUTHORIZATION TO ADVERTIZE FOR "PAVEMENT MANAGEMENT PLAN IMPROVEMENTS" PROJECT AND RECEIVE CONSTRUCTION BIDS RECOMMENDATION It is recommended that the Utility Board/City Council authorize: 1. Staff to advertise the plans and specifications for "The Pavement Management Plan Improvements" project, and 2. The City Clerk's Office to receive bids for the same. BACKGROUND Cities are faced with ever-increasing street maintenance budget problems due to a reduced availability of funds; compounded by the increase in deteriorated streets and disproportionate Increase in the cost per mile for maintenance. The condition of the roadways does reflect on the community. Streets are one of the major capital Investments for a City, as well as one of Its most important. Without a well-maintained street system, the transportation needs of the public, business, industry, and government cannot be met. As such, road networks are clearly deserving of focused management attention. In past years, when maintenance funds were easier to obtain, pavement maintenance was typically done as the engineer identified the need. Past experience tended to dictate the selection of short- term repair techniques with little or no regard to the long-term effects of the selected remedy. 039 Today, as pavement deterioration rates exceed available funds, a more systematic approach to determining maintenance needs, priorities and funding allocations is required. Road networks must be managed, not just maintained. To continue to achieve the standards sought by Engineers, improvement strategies are carefully considered. Staff must consider arterial designation, pavement condition, traffic volumes, local standards and budget constraints. Deferral of street maintenance will almost always result in higher costs in the future. Unfortunately, community needs along with budget constraints restrict the City's ability to employ ideal pavement management principles. The key to planning is the timeliness of each improvement. Deferral can be significantly more than preventive maintenance. According to studies by the American Public Works Association, pavement deteriorates 40% in quality during the first 3/4 of its life. During the next 2-4 years, pavement can deteriorate another 40%. Preventative maintenance that could have only cost $1 in the early stages of the lifecycle would cost $4-5 as a result of the deferral. Deferral can also impact commuters' vehicle maintenance costs. A recently released study asserts that more money is spent annually on car repairs than on road maintenance items that caused these repairs. Over the life of a vehicle, the repairs caused by road damage average $2,000. Azusa Pavement Management Plan In November 2002, the City Council approved a comprehensive five-year Pavement Management Plan for the entire City of Azusa. In the current fiscal year, three neighborhood zones were selected to receive appropriate improvements (please see the attached zone maps for areas 3, 6, and 18). The pavement rehabilitation strategy include the following four treatments: • Asphalt concrete overlay • Slurry seal coat • Cape seal coat • Rubberized slurry seal coat Overlay: This involves placing a two-inch asphalt layer over the existing surface. Resurfacing is done when the pavement has deteriorated to a point that a seal coat will not bring the pavement back to an acceptable level of service. This is when a seal coat would quickly fail because of a lack of structural support from the pavement. slurry Sealing: A mixture of slow setting asphalt emulsion, fine aggregate (sand -like), and water. This mixture is spread over the entire pavement surface about 3/8" thick. In addition to protecting the asphalt and sub -grade from water damage, the slurry seal provides a new wearing surface. Cape sealing. An asphalt rubber aggregate membrane (coated 3/8 inch aggregates ) is placed on the pavement and then a slurry seal coat is applied on the top. ME Rubberized Slurry Sealing: The same as slurry sealing except that the mix contains "crumb rubber" for greater elasticity. This product will be applied to Foothill Blvd. and Azusa Avenue. Phased Approach In the Pavement Management Plan Improvements project, subject to your approval, work will be done only on the streets that will receive slurry, cape seal, and/or rubberized slurry. The second phase, slated for a later date in the current fiscal year, will cover asphalt overlay projects. Exception to the Approved Management Plan The following street was excluded from the current improvement strategy: • Sierra Madre Avenue: In anticipation of needed utility work on this road due to potential Monrovia Nursery subdivision, staff recommends deferment. The savings realized from deferring Sierra Madre is transferred to Alosta/Foothill and Azusa to receive rubberized slurry with the following limits: Alosta and Foothill — from Barranca to Orange Azusa — from Foothill to Ninth Phase li Phase 11 of the Management Plan will include asphalt concrete work on: 1. Azusa and San Gabriel Canyon Road (Old Dairy Road) 2. Gladstone and the Frontage Road, between Citrus and the easterly City boundary line The current project plans and specifications are 98% complete as they were slated for the January 6, 2003, City Council review and action. Upon approvals, the project will be advertised to receive bids by the City Clerk's office. FISCAL IMPACT The Engineer's estimate for the project is $1,510,000. The current year CIP list has designated $2,139;000 for this project (Including overlays in phase 11). Prepared by: Nasser Abbaszadeh, City Engineer Attachment: Project Locations 041 City of Azusa PAVEMENT MANAGEMENT IMPROVEMENTS PLAN PROJECT LOCATIONS 2 City of Azusa STREET PAVEMENT MAP 043 City of Azusa STREET PAVEMENT MAP LEGEND CAPE SEAL City of Azusa STREET PAVEMENT MAP 045 I L z wl all z S T - OR c FOOTHILL ST ui <> Lu H nw>< F�431 -K—VD I r Foo W LIAR laj z I z < 0 6 w CHARLES H 0- ELEM SON Kr�i FIFTH Sl FIF STU ST r ELEM L F-11 1 Lai PP L T F LOU H Sl OR- LSLAVSON :4j �MATCHWO:q STIn 009 AL w AZUSA H IGH �Lj H VA HOL LE z MEMORIAL F� .4 W V) LEGEND RUBBERIZED SLURRY E I (50 rV,r`If, CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES r—, - DATE: DECEMBER 23, 2002 SUBJECT: AUTHORIZATION TO ADVERTIZE FOR "TRAFFIC SIGNAL IMPROVEMENTS AT THE INTERSECTION OF GLADSTONE AND PASADENA" AND RECEIVE CONSTRUCTION BIDS RECOMMENDATION It is recommended that the Utility Board/City Council authorize: 1. Staff to advertise the plans and specifications for "The Traffic Signal Improvements at the Intersection of Gladstone and Pasadena, " and 2. The City Clerk's Office to receive bids for the same. BACKGROUND Staff completed a traffic signal warrant study for the intersection of Gladstone and Pasadena previously and recommended the installation of the traffic signal. Funding was an Issue for the new signal and grant applications were filed with the State of California under the "Safe Routes to Schools Program." The grant applications were not successful. On December 2, 2002, City Council approved the transfer of the savings realized in Street Improvements project (as part of last year's CIP) to this project and the Engineering Associate began project design. The plans and specifications are 98% complete as they were slated for the January 6, 2003, City Council review and action. Upon approvals, the project will be advertised to receive bids by the City Clerk's Office. 047 4 The traffic signal will include a two-phase system to allow for alternate movements on Gladstone and Pasadena as well as safe passage for pedestrians crossing Gladstone (the controller will be an eight -phase computer with capabilities for potential expansion, like left turn protective arrows for the east bound, if warranted in the future). FISCAL IMPACT On December 2, 2002, the City Council approved transfer funds from the recently completed, "Roadway Rehabilitation, Various Locations" project to the new signal. A CIP amendment was approved to transfer the $107,232.76 savings to this project. The Engineer's estimate for the signal project is $90,000. Prepared by: Nasser Abbaszadeh, City Engineer AZUSA EIGHT R NATER AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: DECEMBER 23, 2002 SUBJECT: RESULTS OF CUSTOMER SURVEY AND REQUEST TO WAIVE FORMAL BIDDING PROCEDURES AND AWARD CUSTOMER SERVICE TRAINING TO MEASURE -X RECOMMENDATION It is recommended that the Azusa Utility Board/City Council waive formal bidding requirements for customer service training for field employees; and 2. Authorize the City Manager to execute the agreement with MEASURE -X for a unique, customized customer service training not offered by other training companies. BACKGROUND One of the fiscal year 2002-03 work plan items for Consumer Services is to determine Azusa Light &Water's service baseline, which can be used to improve customer satisfaction by benchmarking, setting performance targets, training, monitoring, and giving employee feedback in key customer contact areas. This is a multi-year project beginning this year. Recently Azusa Light & Water contracted with Satisfaction Development Systems (SDS) to conduct the baseline customer satisfaction survey. Questions were developed in a collaborative process between SDS and Azusa Light & Water. SDS suggested questions used by other utilities for benchmarking purposes. Azusa Light & Water management developed additional questions that would provide customer feedback on specific aspects of our business, including service provided by all of Azusa Light & Water's business office employees and field employees (identified in the survey as installation and repair) and to learn more about customer preferences. Ninety-five percent of Azusa Light & Water customers are satisfied with our service. This compares favorably with the industry average of 94%. Customers felt the most important attribute in providing Excellent customer service is Treating All Customers As If They Are ,Q ` 'Valued. Customers want Azusa Light & Water to communicate more about what goes into the charges customers pay, how their charges compare to surrounding areas, and what Azusa Light & Water is doing in the community. Interestingly, 65% of our customers have a computer in their homes and, of those, 86% have Internet access. To be considered among the highest rated utilities requires a 95% positive rating (combination of Excellent and Good) and 50% Excellent. We hope to raise our Excellent satisfaction rating next year from 49% to 50%. Azusa Light & Water has created an action plan to improve service and communications to our customers: An article will appear in the January Azusa Tomorrow communicating the survey results to our entire customer base. It is intended to let customers know their opinions are valued and expresses the utility's interest in improving the service we provide. 2. A press release about the survey and results will go out in January to local daily and weekly newspapers and the L. A. Times. 3. A new service slogan "We go the Extra Mile" will be incorporated in our communications. It will have a unique graphics "look." It will appear on hats, pins, pencils, and other collateral materials. 4. February will begin a series of utility bill inserts explaining, in English and Spanish, each item on the utility bill. 5. Two goals were established for calendar year 2003: J Maintain our overall service level - Excellent and Good - 95%. J Reach 50% Excellent in all categories. This involves shifting more of the survey rating for 2003 for field employees to Excellent. To help with that effort, the Director of Utilities has requested customer service training for all field employees. A highly recommended training firm, MEASURE -X, can offer specialized training for us. They would talk to certain groups of employees for one day to understand their challenges, interview various customers to obtain their feedback on services they have received from our field employees, and get training objectives from management. Then they would provide two half-day trainings for our field workforce. They will provide follow-up and advanced training at three and six month intervals to be sure the desired results are accomplished. MEASURE -X provides a 100% satisfaction money -back guarantee. This is the only company that provides this level of customized training. 6. Employees will brainstorm additional ways to improve customer service. The Consumer Services Field Services section already has an employee recognition program. Similar programs will be developed for other areas of Azusa Light & Water to promote and reward good service. " • 'PROPOSAL To provide unique, targeted customer service to Azusa Light & Water field employees, staff recommends sole sourcing this training to MEASURE -X. FISCAL IMPACT Customer service training will cost $15,700.00. This includes related expenses. Funds are available in the Light & Water budget. Prepared by: Karen Vanca, Assistant Director Customer Care &Solutions ATTACHMENTS: '_A 91 CustomerSatisfaction PSA - Measure -X CustomerServke-rrai Survey.pdf cust svcs training 12- ning.pdf 1 7 /11 AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE�� DATE: DECEMBER 23 2002 SUBJECT: APPROVAL OF THE AMENDED AND RESTATED FIRM TRANSMISSION SERVICE AGREEMENTS BETWEEN EDISON AND AZUSA RECOMMENDATION It is recommended that the Utility Board/City Council approve the six amended and restated firm transmission service agreements between Edison and Azusa, and authorize the Mayor to sign the agreements upon the preparation of the execution copies. BACKGROUND The City and Edison entered into a Restructuring Agreement in late 1997 to comprehensively restructure the contractual relationship between the parties in view of California electric industry deregulation. The Restructuring Agreement contemplated among other things, a five- year transition period during which Edison would continue to provide firm transmission service for City's long term resources at frozen transmission service rates. At the end of the five-year transition, Edison would then revise the transmission rates under these agreements to conform with California Independent System Operator's (CAISO) transmission service rate. The transition will end on December 31, 2002 and Edison is proposing the transmission rate revision at this time. The affected firm transmission service agreements are as follow: U. Pacific Intertie Firm Transmission Service Agreement 2. Hoover Firm Transmission Service Agreement 3. Pasadena Firm Transmission Service Agreement 4. Sylmar Firm Transmission Service Agreement 5. Palo Verde Nuclear Generating Station Firm Transmission Service Agreement 6. 1995 San Juan Unit #3 Firm Transmission Service Agreement The agreements are available to Board Members in the electronic format of this report which may be accessed by your e-mail. The public or any Board Member may review a hardcopy of 117 the agreements at the office of the Azusa Light & Water, located on the second floor at 729 N. Azusa Avenue, Azusa, California, 91702, during regular business hours. FISCAL IMPACT The transmission rate revision is expected to increase the costs for Edison's transmission services by a minimum of $250,000 per year. However, the City is joining the CAISO as a Participating Transmission Owner as of January 1, 2003 and will receive reimbursements for the same transmission services. The cost increase from Edison will be offset by the reimbursements from the CAISO, resulting in no net increase. Prepared by: Bob Tang, Assistant Director Resource Management Azusa-EALD41.doc Azusa-EAL044 .doc 118 Azusa-EAL052.doc Azusa-EAL068.doc Azusa-EAL077.doc Azusa-EAL089.doc 118 4 �d • CrA A4 AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES < I i�S n' DATE: DECEMBER 23, 2002 SUBJECT: MEMBERSHIP IN FINANCING AUTHORITY FOR RESOURCE EFFICIENCY OF CALIFORNIA (FARECal), AND RESOLUTION DECLARING CITY'S INTENTION TO BE REIMBURSED FOR CERTAIN EXPENDITURES OUT OF THE PROCEEDS FROM TAX-EXEMPT FINANCING. RECOMMENDATION It is recommended that the Azusa Utility Board/City Council adopt the attached resolutions: 1. Resolution authorizing execution of application for membership in Financing Authority for Resource Efficiency of California (FARECal) and commitment to abide by the provisions of FARECal's joint powers agreement; and 2. Resolution declaring City's intention to be reimbursed for certain expenditures from the proceeds of proposed tax exempt financing, as required by the United States Department of Treasury, Regulations Section 1. 150-2. BACKGROUND Azusa Light & Water is undertaking a few projects, including but not limited to: (A) construction of a second electrical substation, and (B) construction of a new electric operations office, and believes the costs for these projects should be spread over a period of years when the benefits of these projects will be realized. Tax exempt bond financing Is a way to do this. FARECal is a joint powers authority that was formed in 1993. FARECal is associated with the California Municipal Utilities Association (CMUA) and has traditionally facilitated with multiple small financings by combining them into a single financing, thereby reducing the combined costs and spreading such costs amongst the participating members. It Is recommended that the City Join FARECal by adopting the attached resolution and by executing the attached membership request form. 119 Further, in order to be eligible for reimbursement of costs that may be incurred prior to the issuance of bonds by FARECal, Bond Counsel for FARECal, Mr. Yanney of Fulbright and Jaworski, has advised the City to adopt the attached resolution declaring the City's intention to be reimbursed for certain expenditures out of the proceeds from tax exempt bond financing. Since the above referenced projects have entered their initial stages, staff recommends that this resolution also be adopted by the Utility Board/City Council. FISCAL IMPACT Bond financing costs will be detailed at a later date when this information is available. There are no annual dues associated with FARECal membership, however, there are some minimal costs associated with an audit conducted every two years, for legal counsel to attend an annual meeting and other administrative costs. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities 120 CITY OF AZUSA RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL/ UTILITY BOARD OF THE CITY OF AZUSA AUTHORIZING EXECUTION OF APPLICATION FOR MEMBERSHIP IN FINANCING AUTHORITY FOR RESORUCE EFFICIENCY OF CALIFORNIA AND COMMITMENT TO ABIDE BY THE PROVISIONS OF THE JOINT POWERS AGREEMENT. WHEREAS, certain public agencies have formed a joint powers authority pursuant to Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California known as the Financing Authority for Resource Efficiency of California ("FARECal'�; and WHEREAS, it is in the best interest of the City of Azusa and Azusa Light & Water to become a member of FARECal which is empowered, among other powers, to plan, develop, finance, purchase, lease, construct, operate and maintain various facilities and resource efficiency programs, which conserve electricity, natural gas or water; and utilize electricity, natural gas and water facilities more efficiently, including facilities that transport, distribute electricity, gas and water, and treat water, waste water or recycled water for reuse. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa as follows: SECTION 1. Authorization of Mayor to execute request for FARECal membership and to abide by FARECal's joint powers agreement. The City Council/Utility Board of the City of Azusa hereby approves and authorizes the Mayor to execute, and the City Clerk to attest, the form attached hereto as Exhibit A, "Request for Membership and Agreement to Abide by Joint Powers Agreement" regarding FARECal, requesting m embership i n F ARECal, a nd c ommitting t he C ity o f A zusa to a bide b y t he j oint powers agreement of FARECal. SECTION 2. Mayor, City Manager, and Director of Utilities authorizations. The Mayor, City Manager; and Director of Utilities are hereby authorized and directed by the City of Azusa to take all actions and do all other things necessary or desirable hereunder with respect to joining FARECal, including but not limited to the execution and delivery of any and all applications, requests, agreements, certificates, instruments and other documents, which they, or any of them, may deem necessary or desirable and not inconsistent with the purposes of this resolution. 45252031.1 121 SECTION 3. Effective Date This Resolution shall take effect from and after the date of its passage and adoption. Adopted by the Council of the City of Azusa on this 23'd day of December, 2002. Mayor ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF AZUSA ) I, City Clerk of the City of Azusa, do hereby certify that Resolution No. was adopted by the Council of the City of Azusa, California at a regular meeting held on the 23rd day of December, 2002, and that same was adopted by the following vote: Ayes: Noes: Absent: 45252031.1 2 City Clerk 122 EXHIBIT A REQUEST FOR MEMBERSHIP AND AGREEMENT TO ABIDE BY JOINT POWERS AGREEMENT CREATING FINANCING AUTHORITY FOR RESOURCE EFFICIENCY OF CALIFORNIA The City of Azusa (the "Applicant') hereby requests that it be granted membership in the Financing Authority for Resource Efficiency of California (the "Authority") and agrees, subject to being granted such membership, to abide by the provisions of the Joint Powers Agreement creating Financing Authority for Resource Efficiency of California, dated July 1, 1993, attached hereto as Exhibit A, as the same may be supplemented or amended (the "Agreement'). Attached hereto as Exhibit B is a certified copy of the action of the governing body of the Applicant authorizing the individual identified below to execute this application for membership in the Authority and to commit the Applicant to abide by the provisions of the Agreement, contingent upon being granted membership in the Authority. APPLICANT: Cristina Cruz -Madrid, Mayor ATTEST: Vera Mendoza, City Clerk 45252031.1 3 123 Exhibit A JOINT POWERS AGREEMENT CREATING FINANCING AUTHORITY FOR RESOURCE EFFICIENCY OF CALIFORNIA 1A01 \6190\2495.8 95434.1 124 1' . TABLE OF CONTENTS ARTICLE I --PURPOSE OF AGREEMENT . . . . . . . . . . . . ARTICLE II --DEFINITIONS . . . . . . . . . . . . . . . . . ARTICLE III --ORGANIZATION . . . . . . . . . . . . . . . . 3.1 Creation of.Authority . . . . . . . . . . . . 3.2 Governing Body . . . . . . . . . . . . . . . 3.3 Members Entitled to Be Represented by Directors 3.4 Regular Meetings . . . . . . . . . . . . . . . 3.5 Special Meetings . ... . . . . . . . . . . . . 3.6 Legal Notice for Meetings . . . . . . . . . . 3.7 Minutes of Meetings . . . . . . . . . . . . . 3.8 Quorum . . . . . . . . . . . . . . . . . . . . 3.9 Voting Generally . . . . . . . . . . . . . . . 3.10 Voting on Project Matters . . . . . . . . . . 3.11 Other Voting Arrangements . . . . . . . . . . 3.12 Officers . . . . . . . . . . . . . . . . . . . ARTICLE IV --POWERS AND FUNCTIONS; FINANCIAL MATTERS . . . 4.1 Powers . . . . . . . . . . . . . . . . . . . . 4.2 Indebtedness . . . . . . . . . . . . . . 4.3 Liability and Contribution . . . . . . . . . . 4.4 Contributions; Payments; Advances, Etc. . . . . 4.5 Accounts and Reports . . . . . . . . . . . . . 4.6 Termination of Powers; Liquidation; Distribution 4.7 Insurance . . . . . . . . . ... . . . . . . . . LA01 \6190\2495.8 i Pacre 2 2 9 9 10 10 12 12 12 13 13 13 14 14 14 17 17 19 19 21 22 23 24 95434.1 125 i ARTICLE V --MEMBERSHIP . . . . . . . . . . . . . . . . . . . . 24 5.1 Original Members . . . . . . . . . . . . . . . . . 24 5.2 Additional Members; Procedures . . . . . . . . . . 24 5.3 Effectiveness of Additional Memberships . . . . . . 26 5.4 Withdrawal or Exclusion of Member . . . . . . . . . 26 ARTICLE VI --GENERAL PROVISIONS . . . . . . . . . . . . . . . 27 6.1 Breach . . . . . . . . . . . . . . . . . . . . . . 27 6.2 Severability . . . . . . . . . . . . . . . . . . . 28 6.3 Successors and Assigns; Amendments . . . . . . . . 28 6.4 Notices . . . . . . . . . . . . . . . . . . . . . . 29 6.5 Effectiveness; Term of the Agreement . . . . . . . 30 6.6 Execution of Counterparts . . . . . . . . . . . . . 30 LA01 \6190\2495.8 ii 95434.1 126 JOINT POWERS AGREEMENT CREATING FINANCING AUTHORITY FOR RESOURCE EFFICIENCY OF CALIFORNIA THIS AGREEMENT, dated as of July 1, 1993, is made and entered into by and among the Members. RECITALS WHEREAS, each Member is a Public Agency and is empowered by law to acquire, construct, maintain and operate facilities, and rights, properties and improvements necessary therefor, for the generation, distribution and transmission of electrical or other energy or natural gas for public or private use or for the treatment, distribution, transmission and storage of water, waste water or recycled water for public or private use; WHEREAS, each Member desires to promote, advance, encourage and participate in conservation, reclamation and other programs which are designed to utilize energy or water resources more efficiently; and WEEP -PAZ, each Member desires to enter into an agreement to create a separate public entity and agency pursuant to the provisions of the Joint Powers Act for the purpose set forth herein and desires that such separate public entity and agency have the powers provided for herein in connection with such purpose; LA01 \6190\2495.8 1 95434.1 127 NOW, THEREFORE, the Members, for and in consideration of the mutual covenants and conditions set forth herein, do hereby agree as follows: ARTICLE I --PURPOSE OF AGREEMENT This Agreement is made pursuant to the provisions of Chapter 5, Division 7, Title 1, of the Government Code of the State of California, as amended from time to time, to create a separate public entity and agency with the power to exercise, in its own name, the powers referred to herein. Such powers include the planning, development, financing, purchase, lease, construction, operation and maintenance of Resource Efficiency Programs and Facilities. ARTICLE II --DEFINITIONS In addition to the other terms defined herein, the following terms, whether in the singular or in the plural, when used herein and initially capitalized shall have the meanings specified. Authority.. The term "Authority" shall mean the separate public entity and agency created by this Agreement. Board of Directors. The term "Board of Directors" shall mean the governing body of the Authority established pursuant to Sections 3.2 and 3.3 hereof. Charter Member. The term "Charter Member" shall refer to each of the following Public Agencies which executes a LA01 \6190\2495.8 2 95434.1 128 counterpart of this Agreement and delivers it to the California Municipal Utilities Association on or before September 1, 1993: the City of Anaheim, The City of Los Angeles, the City of Palo Alto, the North Marin Water District, the City of Riverside, the City of San Francisco and the San Diego County Water Authority. Fiscal Year. The term "Fiscal Year" shall mean the fiscal year of the Authority as established from time to time by the Board of Directors, being at the date of this Agreement the period from July 1 through June 30 of the following year. Indebtedness. The term "Indebtedness" shall mean bonds, i notes or other evidences of indebtedness, and all other obligations, instruments and agreements constituting "Bonds" under the Joint Powers Act. i Joint Powers Act. The term "Joint Powers Act" shall mean the provisions of Chapter 5, Division 7, Title 1, of the Government Code of the State of California, as amended and supplemented from time to time. 1 Liability Share. The term "Liability Share" shall mean, with respect to any Member,, the amount of the judgment or settlement divided by the number of Members at the time the act or omission or alleged act or omission occurred, unless any portion of the judgment or settlement arises from an act or omission or alleged act or omission directly related to the . studying, planning, financing, developing, acquiring, purchasing, construction, reconstructing, implementing, LA01 \6190\2495.8 3 95634.1 129 improving, enlarging, enhancing, operating, maintaining, selling, disposing of, or decommissioning of any Project, Pooled Financing, Study Project or Service as to which there shall be one or more Project Contracts, Pooled Project Contracts, Study Project Contracts or Service Contracts, in which case, with respect to such portion, the term "Liability Share" shall mean, with respect to any Member, the amount of such portion multiplied by a fraction equal to (i) such Member's entitlement or right, if any, to participate in such Project, Pooled Financing, Study Project or Service at the time the act or omission or alleged act or omission occurred divided by (ii) the aggregate amount of all Members' entitlements or rights to participate in such Project, Pooled Financing, Study Project or Service at the time the act or omission or alleged act or omission occurred. Member. The term "Member" shall mean (i) each Original Member, (ii) any Public Agency which shall have met the conditions of Section 5.2 hereof, and (iii) any successor of a Public Agency referred to in. clause (i) or clause (ii) of this definition; provided, however, that the term "Member" shall not include any entity which shall have withdrawn or been excluded from the Authority pursuant to Section 5.4 hereof. Original Member. The term "Original Member" shall have the meaning ascribed thereto in Section 5.1 hereof. LA01 \6190\2495.8 4 95434.1 130 Pool. The term "Pool" shall mean the proceeds from a Pooled Financing which are available for withdrawal by Members or other entities for. Projects which have received a Pooled Project Approval and for which a Pooled Project Contract has been executed. Pooled Financing. The term "Pooled Financing" shall mean a financing of one or more Projects that may or may not be defined in advance of the Pooled Financing, with security for the financing including Pooled Project Contracts entered into with one or more Members or other entities before funds are withdrawn from the Pool by such Members or entities. Pooled Proiect Avaroval. The term "Pooled Project Approval" means a formal approval by a Pooled Project Approval Committee. Each such approval shall be in accordance with criteria to be established from time to time by the Pooled Project Approval Committee and any applicable covenants of the Pooled Financing resolution or indenture. Pooled Project Contract. The term "Pooled Project Contract" shall mean a contract between the Authority and a Member or other entity, providing. the Member or other entity an entitlement to withdraw a specified amount of funds from a Pool and which establishes the Member's or other entity's obligations to make payments which will serve as security for a Pooled Financing. Pooled Project Acyroval Committee. The term "Pooled Project Approval Committee" shall mean a committee, which may LA01 \6190\2495.8 5 95434.1 131 include one .or more Directors, appointed by the Board of Directors to (i) review and recommend for approval by the Board of Directors one or more Projects for a Pooled Financing, (ii) provide Pooled Project Approvals and (iii) perform such other functions as shall be determined by the Board of Directors. Proiect. The term "Project" shall mean any program, activity or other undertaking of the Authority which the Board of Directors designates as a "Project" under this Agreement. Projects, among other activities, may include: Resource Efficiency Programs and Facilities; advertising, education, grants, rebates, discounts, prizes, awards; the construction or acquisition of facilities for public or private use, land and all rights associated with land, properties and improvements necessary or convenient for providing Utility Services; installations or providing of equipment or services on customer premises; and contracts for Utility Services from others. Proiect Contract. The term "Project Contract" shall mean a contract between the Authority and a Member or other entity providing to such Member or other entity an entitlement to participate in a Project which will be financed with a Project Financing and which establishes the Member's or other entity's obligations to make payments which will serve as security for the Project Financing. LA01 \6190\2495.8 6 95434.1 132 r Project Financing. The term "Project Financing" shall mean a financing of one or more defined Projects, with security for the financing being payments to be made under one or more Project Contracts. Prosect Matter. The term "Project Matter" shall mean a matter for decision by the Board of Directors involving a question pertinent to the undertaking, studying, planning, financing, developing, acquiring, constructing, reconstruc- tion, replacement, implementing, improving, enlarging, enhancing, operating, maintaining, repairing, selling or disposing of a Project, Study Project or Service as to which there are one or more Project Contracts, Pooled Project Contracts, Study Project Contracts .or Service Contracts then in effect. Prosect Vote. The term "Project Vote" shall mean a vote or other determination with respect to a Project Matter, taken or made by the entities which are parties to a Project Contract, Pooled Project Contract, Study Project Contract or Service Contract, in accordance with the procedures for such vote or other determination specified _in such Contract. To the extent permitted by law, a Project Vote need not be taken or made during a meeting of the Board of Directors. Public Agency. The term "Public Agency" shall have the meaning ascribed to the term "public agency" in Article 1 of the Joint Powers Act. LA01 \6190\2495.8 i 95434.1 133 Resource Efficiency Programs and Facilities. The term "Resource Efficiency Programs and Facilities" shall mean (i) activities, programs and equipment which are designed to conserve, change usage patterns of or reduce the demand for electrical or other energy or capacity, natural gas or water; (ii) activities, programs and equipment which are designed to utilize electrical or other energy or capacity, natural gas or water facilities more efficiently; (iii) programs, equipment or facilities which are designed to transport, distribute or treat water, waste water or recycled water for purposes of reuse; and (iv) any other programs, equipment or facilities which meet resource efficiency or management needs or requirements, established or approved from time to time by the Board of Directors. Service. The term "Service" shall mean any program, activity or other undertaking of the Authority which the Board of Directors designates as a "Service" under this Agreement. Services can include, among other activities, Resource Efficiency Programs and Facilities, the development or implementation thereof, and ;the purchase of supplies, material or equipment therefor. Service Contract. The term "Service Contract" shall mean a contract between the Authority and a Member or other entity providing such Member or other entity an entitlement to participate in a Service and which establishes the cost LA01 \6190\2495.8 8 95434.1 134 sharing or payment obligations of each such Member or other entity to reimburse the Authority. Study Prosect. The term "Study Project" shall mean any program, activity or other undertaking of the Authority which the Board of Directors designates as a "Study Project" under this Agreement. A Study Project can include, among other activities, making studies, performing research, acquiring options or permits, or incurring other preliminary costs prior to the undertaking of a Project. Study Prosect Contract. The term "Study Project Con- tract" shall mean a contract between the Authority and a Member or other entity providing to such Member or other entity an entitlement to participate in a Study Project and which establishes the cost sharing or payment obligations of such Member or other entity. Utility Services. The term "Utility Services" shall mean generation, production, treatment, delivery and support services required or useful for providing electric or other energy or capacity, natural gas, water, ,waste water or recycled water services. ARTICLE III --ORGANIZATION 3.1 Creation of Authority. Pursuant to the Joint Powers Act, there is hereby created a public entity and agency to be known as the "Financing Authority for Resource Efficiency of California" which shall be a public entity separate and apart from the Members. i j LA01 \6190\2495.8 9 95434.1 135 3.2 Governincr Body. The governing body of the Authority shall be the Board of Directors. The Board of Directors shall have the responsibility for the general management of the affairs, property and business of the Authority and may, from time to time, adopt and modify such By -Laws and other rules and regulations for that purpose and for the conduct of its meetings as it may deem proper. The Board of Directors may exercise and shall be vested with all powers of the Authority insofar as consistent with applicable law and this Agreement. 3.3 Members Entitled to Be Represented by Directors. The Board of Directors shall consist, at any time, of the Directors then holding. such position in accordance with the following provisions: 3.3.1 Charter Member.Directors. Each Member which is a Charter Member shall at all times be entitled to be represented on the Board of Directors by its own Director. 3.3.2 Participation -Based Directors. If, on the first day of any calendar year after calendar year 1993, there are Members other than Charter Members, (a) the President shall cause to be prepared a computation of all payments made by each Member to or for the benefit of the Authority in the immediately preceding Fiscal Year, and (b) each of the five (5) Members (other than Charter Members) which have made the greatest amounts of payments tA01 \6190\2495.8 IM 95434.1 136 as shown by such computation shall be entitled to be represented on the Board of Directors by its own Director throughout the then current calendar year. 3.3.3 Voting -Based Directors. If, on September 1 of calendar year 1993 or on the first day of any subsequent calendar year, there shall be (a) Members other than Charter Members and Members entitled to their own Directors in such calendar year pursuant to Section 3.3.2 hereof, and (b) fewer than three (3) Voting -Based Directors whose terms include such calendar year, the President shall cause each Member to be notified that, at the first regular meeting of the Board of Directors in such calendar year, there will be a selection of Members entitled to be represented by their own Directors. At such meeting, by the majority vote of authorized representatives of Members voting (in person, on a one -Member, one -vote basis), other Members shall be selected as Members entitled to their own Directors. The maximum number of Members entitled to be represented by their own Directors pursuant to this Section 3.3.3 at any time shall be three (3). Each Director representing a Member selected pursuant to this Section 3.3.3 shall serve for such calendar year (or such greater number of calendar years as shall be determined unanimously by the Board of Directors voting on the matter at the time of such selection). 1A01 \6190\2495.8 11 95434.1 137 3.3.4 Identification of Directors. Each Director shall be the chief utility executive responsible far Utility Services of the Member represented, or the designee of such chief utility executive. If the Member shall have two or more utility operations and two or more chief utility executives responsible for Utility Services, the Director shall be the designee of such chief utility executives (acting in concert). 3.3.5 Relincuishina Entitlement to Director. Any Member, at any time, and for such number of calendar years as it shall designate, may relinquish its entitlement to be represented by its own Director, any such relinquishment to be effective at or after such Member shall deliver to the Authority an instrument to that effect. 3.4 Recular Meetings. The Board of Directors shall hold a regular meeting not less than once each calendar year. The date, hour and place of regular meetings shall be fixed by resolution of the Board of Directors. 3.5 Special Meetings. Special meetings of the Board of Directors may be called in accordance with the provisions of the Government Code of the State of California, as amended from time to time. 3.6 Legal Notice for Meetings. All meetings of the Board of Directors shall be held subject to the provisions of the laws of LA01 \6190\2495.3 12 95434.1 138 the State of California requiring notice of meetings of public bodies to be given in the manner provided in such laws. 3.7 Minutes of Meetings. The Secretary of the Authority shall cause to be kept minutes of the meetings of the Board of Directors, both regular and special, and shall, within 15 working days after each meeting, cause a copy of the draft minutes to be forwarded to each Director for review and comment. The final minutes with respect to each meeting of the Board of Directors shall be forwarded to each Member within 5 working days after the approval thereof by the Board of Directors. 3.8 Oru . At all meetings of the Board of Directors, a majority of the Board of Directors shall constitute a quorum for the transaction of business; provided, that, if less tnan a majority of the Board of Directors is present at a meeting, a majority of those Directors present may adjourn the meeting. 3.9 voting Generally. Each Director shall. have one vote. Subject to Sections 3.3.3, 3.10, 3.11, 5.2.2 and 5.4.3 hereof, the vote of the majority of the Directors voting at a meeting at which a quorum is present shall decide any question brought before such meeting, and such decision shall be deemed to be the action of the i Board. LA01 \6190\2495.8 13 95434.1 139 } 3.10 Votinc on Project matters. Each Project Contract, Pooled Project Contract, Study Project Contract and Services Contract shall establish a method by which the entities participating therein shall conduct Project Votes with respect to any Project matter arising thereunder. With respect to any Project Matter. (a) no vote shall be taken thereon by the Board of Directors unless and until a Project Vote shall have been made or taken thereon and the result of the—most recent Project Vote thereon shall have been presented to the Board of Directors; and (b) no action of the Board of Directors thereon shall be effective unless the action conforms to the most recent Project Vote made or taken thereon; provided, that, the limitations and requirements of clause (a), and clause (b) of this paragraph, or any portion thereof, may be eliminated with respect to any Project Matter vote or action by the favorable vote of not less than 80% of the Directors present at the meeting. 3.11 Other Votinc Arrangements. No. provision of this Agreement shall in any way restrict the ability of the Authority to make and enter into contracts providing for its representation and voting on management or other committees with respect to a Project. 3.12 Officers. 3.12.1 At its first meeting in each calendar year, the Board of Directors shall elect or re-elect a President and a Vice President (each of whom shall be selected from among the LA01 \6190\2495.3 14 95434.1 140 ,If. Directors) and shall also appoint or re -appoint a Secretary and a Treasurer/Auditor (each of whom may, but need not, be selected from among the Directors). In the event that the President, Vice President, Secretary or Treasurer/Auditor so elected or appointed ceases (in the case of the President or Vice President) to be a Director, resigns from such office or is otherwise unable to perform the duties of such office, the resulting vacancy shall be filled at the next regular. or special meeting of the Board of Directors held after such vacancy occurs. In the absence ar.inability of the President to act, the Vice President shall act as President. The President, or in the President's absence the Vice President, shall preside at and conduct all meetings of the Board of Directors. 3.12.2 The Treasurer/Auditor is designated as the treasurer and the auditor of the Authority and.as such (i) shall be the depositary of the Authority to have custody of all the money of the Authority, from whatever source, (ii) shall draw warrants to pay demands against the Authority when the demands have been approved by the Presidenc or the Vice President of the Authority, and (iii) shall have the other powers, duties and responsibilities of such officers as specified in Section 6505.5 of the Government Code of the State of California, as amended from time to time, except insofar as such powers, duties and responsibilities are assigned to a trustee appointed, as is provided for and LA01 \6190\2495.9 15 95434.1 Al authorized by the Government Code of the State of California, as amended from time to time, pursuant to any resolution, indenture or other instrument providing for the issuance of bonds or notes of the Authority pursuant to Article IV of this Agreement. 3.12.3 The President, the Vice President and the Treasurer/Auditor, to the extent such officers, duties and responsibilities pursuant to the Joint Powers Act require, are designated as the public officers or persons who have charge of, handle, or have access to any property of the Authority, and each such officer shall file an official bond with the Secretary of the Authority in the amount of $100,000. 3.12.4 In addition to the powers, duties and responsibilities provided herein or by law, the President, the Vice President and the Secretary shall have such powers, duties and responsibilities as are provided in the By -Laws of the Authority. The Treasurer/Auditor shall have such powers, duties and responsibilities as are provided herein or by the laws of the State of California. 3.12.5 The Board of Directors shall have the oower to appoint, or contract to employ, a General Manager, who may be an employee of a Member and who shall have such powers, duties and responsibilities as are determined by the Board of Directors. 3.12.6 The Board of Directors shall have the cower to appoint, or contract to employ, such ocher officers and LA01 \6190\2495.9 16 95434.1 442 Y employees of the Authority as it may deem necessary, any of whom may, but need not, be employees of a Member, and who shall have such mowers, duties and responsibilities as are determined by the Hoard of Directors. ARTICLE ZV--POWERS AND FUNCTIONS• FINANCIAL MATTER 4.1 Powers. The Authority shall have, in its own name, any and all powers authorized by law to two or more of the Members relating to the planning, development, undertaking, purchase, lease, acquisition, construction, financing, disposition, use, cperation, repair, replacement or maintenance of (a) facilities for the generation, production, transmission, conservation, reuse, recycling, storage, treatment or distribution of electrical or other energy or capacity, natural. gas, water, waste water or recycled water, or (b) Resource Efficiency Programs and Facilities, or (c) any combination thereof. The Authority shall.also have, in its own name, any additional powers provided to it by California law (including Section 6588 of the California Government Code), as amended from time to time. The Authority shall have, in its own name, the power to do all acts necessary, apnrouriate or incidental to the exercise of the foregoing powers, including,' but not limited to, the following: (a) to make and enter into contracts; (b) to employ agents and employees; (c) to plan, develop, accuire, construct, manage, maintain, repair, replace or operate any LA01 \6190\2495.8 17 95434.1 143 buildings, facilities, works, roads or improvements or interests therein; (d) to acquire (by the exercise of the power of eminent domain or otherwise), hold, lease, sell or otherwise dispose of any real or personal property, tangible or intangible, and any interests therein, wherever located; (e) to incur debts, liabilities or obligations which do not constitute a debt, liability or obligation of any Member; (f) to sue and be sued in its own name; (g) to establish a budget and authorize expenditures therefrom; (h) to apply for or receive grants from either public or private sources for Resource Efficiency Programs and Facilities; (i) to enter into agreements for the creation of separate public entities and agencies pursuant to the Joint Powers Act; and (;) to exercise any other power permitted by the laws of the State of California to carry out the purpose of the Authority. Such powers shall be exercised in the manner provided in Section 6509 of the Government Code of the State of California, as amended from time to time, subject only to the restrictions upon the manner of exercising such powers as are imposed upon the City LA01 \6190\2495.8 1 8 95434.1 144 of Palo Alto or the City of Riverside (as determined by the Board of Directors) in the exercise of similar powers. 4.2 Indebtedness. The Authority shall also have the power to issue or incur, sell and deliver, in accordance with the provisions of the Joint Powers Act, Indebtedness (i) to provide funds for the acquisition, construction and financing of one or more Projects (whether through Project Financing, Pooled Financing or otherwise); (ii) for the purpose of financing one or more Study Projects and for the purpose of providing temporary financing of costs of construction or acquisition of one or more Projects; and (iii) for the purpose of refinancing previous Indebtedness of the Authority, any Member or Public Agency. The terms and conditions of the issuance of any such Indebtedness of the Authority shall be set forth in a resolution, indenture or other inSr, nlmanr CH, 11 4 ,1 -A- such security provisions and shall specify such source or sources of payment, as shall be determined by the Board of Directors. 4.3 Liability and Contribution. 4.3.1 Indebtedness of the Authority, and contracts or obligations which are entered into or incurred by the Authority to carry out the purposes of such Indebtedness, and which are payable from the proceeds of such Indebtedness, shall not constitute a debt, liability or obligation of any Member. Pursuant to the Government Code of the State of California, no debt, liability or obligation of the Authority L101 \5190\2495.3 19 95434.1 3.45 shall be a debt, liability or obligation of any Member except as provided by Section 895.2 of the Government Code of the State of California, as amended from time to time, in the case of injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement. 4.3.2 In the event any Member is held liable upon any judgment for damages caused by a negligent or wrongful act or omission occurring in the performance of this Agreement, and pays in excess of its Liability Share of such judgment, such Member shall be -entitled to contribution from each other Member and may require each other Member to pay an amount towards the judgment for damages, but in no event shall any such other Member be required to pay in excess of ,its Liability Share of such judgment. 4.3.3- In the event any Member shall become liable upon any settlement of any action, suit or proceeding with respect to damages caused by.a negligent or wrongful act or omission or alleged negligent wrongful act or omission occurring in the performance of this Agreement, and pays in excess of its Liability Share of such settlement, such Member shall be entitled to contribution from each other Member and may require each other Member to pay an amount towards the settlement, but in no event shall any such other Member be required to pay in excess of its Liability Share of such settlement. Notwithstanding the foregoing, in no event shall any such other Member be required to pay any amount with U101 \6190\2495.9 20 95456,1 i46 respect CO any such settlement entered into without its prior written consent. 4.3.4 Any Member entitled to contribution pursuant to Section 4.3.2 or Section 4.3.3 hereof shall, promptly after receipt of notice of commencement of any action, suit or proceeding against such Member in respect of which a clam for contribution may be made against another Member or Members under Section 4.3.2 or Section 4.3.3 hereof, notify such other Member or Members from whom contribution may be sought. 4.3.5 Nothing contained in this Agreement shall in any way diminish the liability of any Member or other party with respect to any contract between such Member or other party and the Authority. 4.4 . Cortributions• Payments, Advances, Etc In accordance with the Government Code of the State of California, the Members shall make such contributions, payments and advances to the Authority as are approved from time to time by the Board of Directors. The Authority may make such arrangements relative to the repayment or return to the Members of such contributions, payments and advances as are approved from time to time by the Board of Directors. Any Member which fails to make or pay when due any required contribution, payment or advance to the Authority, may have its rights under this Agreement terminated and may be excluded from participation in the Authority as provided in Section 5.4.3 of this LA01 \6190\2495.8 2 1 95434.1 147 Agreement. Any such Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Hoard of Directors prior to such Member's exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval. 4.5 Accounts and Reports There shall be strict account- ability of all funds and reporting of all receipts and disbursements of the Authority. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of any resolution, indenture or ,other instrument of the Authority securing its Indebtedness, except insofar as such powers, duties and responsi- bilities are assigned to a trustee appointed pursuant to such resolution, indenture or instrument. The books and records of the Authority shall be open to inspection at all reasonable times to each Member and its representatives. The Authority, within 120 days after the close of each Fiscal Year, shall give a ccmplete written report of all financial activities for such Fiscal Year to the Members. The Treasurer/Auditor shall cause an annual audit of the accounts and records of the Authority to be .made by an independent certified public accountant or independent public accountant, all in accordance with, and at the time or times required by, law. U01 \6190\2495.9 22 95434.1 • All the books, records, accounts and files referred to in this Section 4.5, shall be open to inspection by the holders of Indebtedness of the Authority to the e.�ctent and in the manner provided in the resolution, indenture or other instrument providing for the issuance of such Indebtedness. 4.6 Termination of powers: Liquidation: Distribution This Agreement shall continue in full force and effect, and the Authority shall continue to possess the powers herein conferred upcn it, until the expiration of the term of this Acreement pursuant to Section 6.5 of this Agreement or until the Members shall have rescinded this Agreement. Rescission of this agreement may only be accomplished by a writing executed by each Member and appraved by resolution of each Member's governing body. In no event shall this Agreement or the powers herein granted to the Authority be rescinded until (a) all Indebtedness of the Authority and the interest .thereon shall have been paid or adequate provisions for such payment shall have been made in accordance with the instruments governing such Indebtedness, and (b) all other obligations and liabilities of the Authority shall have been met or adequately provided for, as determined by the Board of Directors and in accordance with the laws of the State of California. Upon any such expiration or rescission, the Board of Directors shall liquidate the business and assets and property of the Authority as expeditiously as practicable, and distribute any net proceeds to any Members in such manner as shall be determined by 1A01 \6190\2495.8 23 95434.1 149 the Board of Directors in accordance with this Agreement and the laws of the State of California. 4.7 Tnsuranc=. The Authority shall obtain and cause to be maintained in effect public liability insurance and directors and officers insurance, each such insurance to afford coverage to a limit of not less than $5,000,000 with deductibles not to exceed 10% of the face amount; provided, that the Authority shall not be required to obtain or maintain such insurance to the extent (i) the same is not: available from reputable insurers in the oven market as standard colicies_5VIrsiiance, or (ii) the Authority is unable to pay the premiums therefor from funds available to it, or (iii) determined from time to time by the Board of Directors. ARTICLE V--M^MBERSHIa 5.1 Original Members. Each Public Agency authorized to engage in activities described n this Agreement, eligible for membership in the California Municipal Utilities Association, and located in California which executes a counterpart of this Agreement and delivers it to the California Municipal Utilities Association an or before September 1, 1993 shall be an "Original Member." 5.2 Additional Membe^s• Procedures. after September 1, 1993, any Public Agency, authorized to engage in activities described in this Agreement, eligible for membership in the California Municipal LAO \6190\2495.8 24 95434.1 150 Utilities Association, and located in California may become a Member upon meeting the following additional conditions: 5.2.1 The Public Agency shall apply to the Board of Directors for membership and file with the Board of Directors an instrument in form and substance satisfactory to the Board of Directors, together with a.certified copy of a resolution of its governing body, whereby the Public Agency (i) agrees to the provisions of this Agreement and (ii) requests to become a Member. in reviewing an application for membership, the Board of Directors may reject said application based on the creditworthiness of the applicant or on any other matter which has affected or may affect the creditworthiness of the applicant and which may thereby affect the creditworthiness of the Authority. T`ie Board of Di_ectars also reserves the right to reject an applicant if the Board of Directors determines that the membership of such applicant would be detrimental to the effectiveness of the Authority or would interfere with the realization of the Authority's goals and purposes. 5.2.2 No such Publi`c_Agency shall become a Member until (i)_ its admission is approved by a vote of two-thirds of the Directors voting on the matter and (ii) such Public Agency deposits or agrees to deposit with the Authority an amount equal to such share of the costs and expenses incurred by the Authority prior to the date of admission of such Public Agency as a!Member as shall be determined by the Board of Directors. LA01 \6190\2495.8 25 95434.1 151 5.3 Effectiveness of Additional Membershiios. Upon meeting the conditions of Section 5.2 hereof, the applicant shall become a Member for all purposes of this Agreement, and the instrument provided pursuant to Section 5.2.1 shall become a part of the Official records of the Authority. Neither the effectiveness of such membership nor such instrument shall constitute an amendment or modification of this Agreement for purposes of Section 6.3 hereof. — 5.4 Withdrawal or Exclusion of Member. 5.4.1 Any Member may withdraw from the Authority upon the following conditions: fi) the Member shall have filed with the Board of Directors a certified cony of a resolution of its governing body expressing its desire to so withdraw and (ii) if the Authority, prior to the filing of such resolution, shall have inct_irred any obligation payable from contributions, payments or advances in accordance with Section 4.4, which obligation matures after the date of such filing, the withdrawing Member shall have paid, or made arrangements satisfactory to the Board of Directors to pay, to the Authority its pro rata portion of such obligation. 5.4.2 Upon compliance with the conditions specified in Section 5.4.1, the withdrawing Member shall no longer be considered a Member for any reason or purpose under this Agreement and its rights and obligations under this Agreement shall terminate. The withdrawal of a Member shall not affect LA01 \6190\2495.3 LITI 95434.1 152 any obligations of such Member under any contract between the withdrawing Member and the Authority. 5.4.3 Any Member which has (i) defaulted under a contract with the Authority, or (ii) failed to pay any required contributions, payments or advances in accordance with Section 4.4 hereof, may have its rights under this Agreement terminated and may be excluded from participating in the Authority by a vote of two-thirds of the Directors voting on the matter (excluding from voting the Director, if any, representing .the defaulting Member). Any excluded Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board of Directors prior to such Member's exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval. No withdrawal from membership pursuant to Sections 5.4.1 and 5.4.2 hereof or exclusion from participation pursuant to Section S. 4.3 hereof shall constitute an amendment or modification of this Agreement for purposes of Section 6.3 hereof. ARTICLE VI --GENERAL PROVISIONS 6.1 Breach. If default shall be made by any Member in any undertaking contained in this Agreement, such default shall not excuse such Member or any other Member from fulfilling its obligations under this Agreement and each Member shall continue to LA01 \6190\2495.8 27 95434.1 153 be liable for the payment of its Liability Share, pursuant to Section 4.3, and its contributions, payments and advances pursuant to Section 4.4, and the performance of all conditions herein contained. Each Member hereby declares that this Agreement is entered into for the benefit of the Authority created hereby and each Member hereby grants to the Authority the right to enforce, by whatever lawful means the Authority deme appropriate, all of the obligations of such Member hereunder. Each and all of the remedies given to the Authority hereunder, including those provisions contained in Section 5.4.3, or by any law now or hereafter enacted are cumulative and the exercise of one right or remedy shall not impair the right of the Authority to any or all other remedies. 6.2 Severability. In the event that any term, covenant or condition of this Agreement or the application of such term, covenant or condition, shall be held invalid as to any person or circumstance by any court having jurisdiction in the premises, all other terms, covenants or conditions of this Agreement and their application shall not be affected thereby, but shall remain in force and effect unless a court holds that the provisions are not separable from all other provisions of this Agreement. 6.3 Successors and Assigns; zkmendments. This Agreement shall be binding upon and shall inure to the benefit of the successors and permitted assigns of the Members. No Member may assign any richt or obligation hereunder without the consent of all other U01 \6190\2495.8 28 95454.1 154 Members. The immediately preceding sentence shall not affect, in any respect, any right of assignment under any contract between any Member and the Authority. Subject to any requirements of law, including Section 6573 of the Government Code of the State of California, as amended from time to time, this Agreement may be amended at any time and from time to time by a writing or writings executed by each Member and approved by resolution of each Members governing body. 6.4 Notices. 6.4.1 Any notice, demand or request to any Member provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person •or sent by registered or certified mail, postage prepaid, to the person and at the address designated by such Member unon the commencement of its membership in the Authority. 6.4.2 A Member may, at any time, by written notice to each other Member and the Authority, designate different persons or different addresses for the giving of notices, demands or requests to it hereunder. 6.4.3 Any notice, demand or request to the Authority provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to FARECal, c/o California Municipal Utilities LA01 \6190\2495.8 29 95434.1 155 Association, 1225 Eighth Street, Suite 440, Sacramento, California 95814. 6.4.,4 The Authority may, at any time, by written notice to each Member, designate a different or additional person or a different address for the giving of notices, demands or requests to it hereunder. 5.5 Effectiveness- "'e -m of the Aar m n This Agreement: shall become effective on the later of (a) July 1, 1993, or (b) the first date on which there shall be two or more Charter Members. Subject to the right to rescind provided by Section 4.6 hereof, �'�4s Agreel-lent shall contii:e in full force and effect for a period Of 50 years from its effective date or until .such time as all Indebtedness of the Authoritv and the interest thereon shall have been paid in full or until adequate provision for such payment shall have been made in accordance with the instr,=ents governing such Indebtedness. 0'.6 Exec•+r.on of Cou-, . irex-parts. This Agreement may be aeecuted in any number of counterparts. All such counterparts shall be deemed to be originals and shall together constitute but one and the same inst:vment. 1407 \6190\2495.3 30 954;4.1 156 WI NESS WFZ OF, tie Oricinal members aave caused t --;s Agree tent to be duly executed and att_st_d by tte_r proper officers =hereunto duly authorized. Date: V21LQI Date: 1119/93 _ AT QST: Lata: August 16, 1993 A^ TMST _ 3y Maria Curiel, City Cleri LA01 \6190\2495.3 CITY 0 By �— Edwa.[y hjayan Its Public 1J�[4 it'_es General `,Saga er CIT! OF, COLTON� J�Lf Byt -tel<< Gl �l iif/i.� Its Electric Utility Director CITY fF HEALDSBIyRG //,, 3y(_//���l>��I It3 Mayor DEPARTMENT OF WATER .AND POWER OF THE CITY OF LOS ANGELES BY BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES 157 L. Date: l0 7 3 ATTS'S Hy v Date: Rlkuz� 311943 Date: 9 All av Date: AUGUST 31, 1993 ' A2T�..8T: BY baa - -.��� c..4— MARIA "ART, City Clerk APPROVED AS TO FORM: By // %� SCOT RASMUSSEN Assistant City Attorney LAOT \6190\2495.3 32 NOR^_??RyV A1A1yR DISTR_TCP Its - � 1 a— C_"1^_' OF °ALO ALTO 3y�iiLwC.�./7�� CITY OF PASAD A ey ✓/ Its General Manager .dater. and Power Department 7542- "S , * • v Date: �9�3 Date: MAY 51993 A-77ZEST: BV City Clerk =a Sen�rc93 "-c— OanSchori Secretary Date: AT=ST: 1A01 \6190\2495.3 33 CITY OF RIVERS=E JI 7 SACRAMENTO MUNICCIPAL UTILITY DISTRICT / _ S- David Freeman rA Haver TIIRLOL'X IRRIGATI N DISTRICT By ` Its General Manacrer 95634.: 159 CITY OF AZUSA RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA DECLARING ITS INTENTION TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF A PROPOSED TAX-EXEMPT FINANCING, AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2. WHEREAS, the City of Azusa (the "City") is contemplating the issuance by the City, or an entity on behalf of the City, of tax-exempt obligations (the "Bonds") to fund various capital improvements to its electric utility (together, the "Project"); and WHEREAS, Project expenditures will occur prior to the date of issuance of the Bonds (the "Reimbursable Expenditures"); and WHEREAS, section 1.150-2 of the Treasury Regulations (the "Treasury Regulations") promulgated under the Internal Revenue Code of 1986, as amended, requires that in order that an allocation of proceeds of the Bonds to an expenditure paid prior to the _issuance of the Bonds be respected by the Internal Revenue Service, the City generally must no later than 60 days following such payment have declared its reasonable official intent to reimburse for such payment out of proceeds of the Bonds; and WHEREAS, the City desires to facilitate the allocation of proceeds of the Bonds to the reimbursement for payment of all or a portion of the Reimbursable Expenditures for the Project; follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa as SECTION I. Compliance with Treasury Regulations This Resolution is adopted solely for purposes of establishing compliance with the requirements of section 1.150-2 of the Treasury Regulations. This Resolution does not obligate the City to make any expenditure, issue the Bonds or proceed with the Project. SECTION 2. Intent to Reimburse City from Bond Proceeds The City hereby declares its reasonable official intention to issue Bonds or incur other obligations in an amount that is currently expected to be approximately $9,000,000, and to apply a portion of the proceeds thereof to the reimbursement of the City for the prior payment of Reimbursable Expenditures. The City recognizes that under section 1.150-2 of the Treasury Regulations, the allocation of proceeds of the Bonds to Reimbursable Expenditures (other than certain de minimis or preliminary expenditures described in section 1.150-2(f) of the Treasury Regulations) will be recognized only if (i) the Reimbursable Expenditures were paid not earlier than 60 days prior to the adoption of this Resolution and 45252031.1 160 (ii) the allocation of proceeds of the Bonds to such reimbursement is made not later than the later of (a) 18 months after the date of payment of the Reimbursable Expenditures or (b) 18 months after the date upon which the Project is placed in service or abandoned, but in no event more than three years after the date of the original expenditure of such moneys. SECTION 3. Effective Date This Resolution shall take effect from and after the date of its passage and adoption. Adopted by the Council of the City of Azusa on this 23rd day of December, 2002. ATTEST: — Mayor City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF AZUSA ) 1, , City Clerk of the City of Azusa, do hereby certify that Resolution No. _ was adopted by the Council of the City of Azusa, California at a regular meeting held on the 23rd day of December, 2002, and that same was adopted by the following vote: Ayes: Noes: Absent: City Clerk 45252031.1 2 161 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL/ UTILITY BOARD OF THE CITY OF AZUSA AUTHORIZING EXECUTION OF APPLICATION FOR MEM BE IN FINANCING AUTHORITY FOR SORUCE EFFICIENCY OF CALIFORNIA COMMITMENT TO ABIDE BY THE PROVISIONS OF THE JOINT POWERS AGREEMENT. WHEREAS, certain public agencies have formed a joint powers authority pursuant to Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California known as the Financing Authority for Resource Efficiency of California ("FARECal"); and WHEREAS, it is in the best interest of the City of Azusa and Azusa Light & Water to become a member of FARECal which is empowered, among other powers, to plan, develop, finance, purchase, lease, construct, operate and maintain various facilities and resource efficiency programs, which conserve electricity, natural gas or water; and utilize electricity, natural gas and water facilities more efficiently, including facilities that transport, distribute electricity, gas and water, and treat water, waste water or recycled water for reuse. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa as follows: SECTION 1. Authorization of Mayor to execute request for FARECal membership and to abide by FARECal's joint powers agreement. The City Council/Utility Board of the City of Azusa hereby approves and authorizes the Mayor to execute, and the City Clerk to attest, the form attached hereto as Exhibit A, "Request for Membership and Agreement to Abide by Joint Powers Agreement" regarding FARECal, requesting membership in FARECal, and committing the City of Azusa to abide by the joint powers agreement of FARECal. SECTION 2. Mayor, City Manager, and Director of Utilities authorizations. The Mayor, City Manager, and Director of Utilities are hereby authorized and directed by the City of Azusa to take all actions and do all other things necessary or desirable hereunder with respect to joining FARECal, including but not limited to the execution and delivery of any and all applications, requests, agreements, certificates, instruments and other documents, which they, or any of them, may deem necessary or desirable and not inconsistent with the purposes of this resolution. 45252031.1 SECTION 3. Effective Date This Resolution shall take effect from and after the date of its passage and adoption. Adopted by the Council of the City of Azusa on this 23`d day of December, 2002. Mayor ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF AZUSA ) I, , City Clerk of the City of Azusa, do hereby certify that Resolution No. was adopted by the Council of the City of Azusa, California at a regular meeting held on the 23rd day of December, 2002, and that same was adopted by the following vote: Ayes: Noes: Absent: City Clerk 45252031.1 2 EXHIBIT A REQUEST FOR MEMBERSHIP AGREEMENT TO ABIDE BY JOINT POWERS AGREEMENT CREATING FINANCING AUTHORITY FOR RESOURCE EFFICIENCY OF CALIFORNIA The City of Azusa (the "Applicant') hereby requests that it be granted membership in the Financing Authority for Resource Efficiency of California (the "Authority") and agrees, subject to being granted such membership, to abide by the provisions of the Joint Powers Agreement creating Financing Authority for Resource Efficiency of California, dated July 1, 1993, attached hereto as Exhibit A, as the same may be supplemented or amended (the "Agreement'). Attached hereto as Exhibit B is a certified copy of the action of the governing body of the Applicant authorizing the individual identified below to execute this application for membership in the Authority and to commit the Applicant to abide by the provisions of the Agreement, contingent upon being granted membership in the Authority. APPLICANT: Cristina Cruz -Madrid, Mayor ATTEST: Vera Mendoza, City Clerk 45252031.1 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA DECLARING ITS INTENTION TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF A PROPOSED TAX-EXEMPT FINANCING, AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2 WHEREAS, the City of Azusa (the "City") is contemplating the issuance by the City, or an entity on behalf of the City, of tax-exempt obligations (the "Bonds") to fund various capital improvements to its electric utility (together, the "Project'); and WHEREAS, Project expenditures will occur prior to the date of issuance of the Bonds (the "Reimbursable Expenditures"); and WHEREAS, section 1.150-2 of the Treasury Regulations (the "Treasury Regulations") promulgated under the Internal Revenue Code of 1986, as amended, requires that in order that an allocation of proceeds of the Bonds to an expenditure paid prior to the issuance of the Bonds be respected by the Internal Revenue Service, the City generally must no later than 60 days following such payment have declared its reasonable official intent to reimburse for such payment out of proceeds of the Bonds; and WHEREAS, the City desires to facilitate the allocation of proceeds of the Bonds to the reimbursement for payment of all or a portion of the Reimbursable Expenditures for the Project; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa as follows: SECTION 1. Compliance with Treasury Regulations This Resolution is adopted solely for purposes of establishing compliance with the requirements of section 1.150-2 of the Treasury Regulations. This Resolution does not obligate the City to make any expenditure, issue the Bonds or proceed with the Project. SECTION 2. Intent to Reimburse City from Bond Proceeds The City hereby declares its reasonable official intention to issue Bonds or incur other obligations in an amount that is currently expected to be approximately $7,000,000, and to apply a portion of the proceeds thereof to the reimbursement of the City for the prior payment of Reimbursable Expenditures. The City recognizes that under section 1.150-2 of the Treasury Regulations, the allocation of proceeds of the Bonds to Reimbursable Expenditures (other than certain de minimis or preliminary expenditures described in section 1.150-2(f) of the Treasury 45252031.1 Regulations) will be recognized only if (i) the Reimbursable Expenditures were paid not earlier than 60 days prior to the adoption of this Resolution and (ii) the allocation of proceeds of the Bonds to such reimbursement is made not later than the later of (a) 18 months after the date of payment of the Reimbursable Expenditures or (b) 18 months after the date upon which the Project is placed in service or abandoned, but in no event more than three years after the date of the original expenditure of such moneys. SECTION 3. Effective Date This Resolution shall take effect from and after the date of its passage and adoption. Adopted by the Council of the City of Azusa on this 23`d day of December, 2002. ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF AZUSA ) Mayor I, , City Clerk of the City of Azusa, do hereby certify that Resolution No. was adopted by the Council of the City of Azusa, California at a regular meeting held on the 23rd day of December, 2002, and that same was adopted by the following vote: Ayes: Noes: Absent: City Clerk 45252031.1 2 AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITI� DATE: DECEMBER 23, 2002 SUBJECT: AWARD CONTRACT TO DESIGN, ENGINEER, PROCURE, CONSTRUCT (EPC) AZUSA LIGHT & WATER 2nd ELECTRIC SUBSTATION (1 160 W. Gladstone St.) RECOMMENDATION It is recommended that the Azusa Utility Board/City Council: Award EPC Agreement to Black & Veatch Construction Inc., in the amount not to exceed $3,086,000 (Three Million Eighty Six Thousand Dollars) for the design, engineering, procurement, construction and commissioning of Azusa Light Water's 2nd electric substation at 1 160 West Gladstone Street, and authorize the Mayor to execute EPC Agreement subject to final review and approval by the City Attorney. (Said EPC Agreement is comprised of: (a) Azusa Light & Water's standard professional services agreement for engineering services; and (b) an agreement for the procurement, construction and commissioning of the EPC Project.) BACKGROUND On July 21 2002, Azusa Light & Water closed escrow on the substation property located at 1160 West Gladstone Street. Thereafter, Azusa Utility Board, during their regular Board meeting held on August 26, 2002, authorized staff to prepare and solicit a complete Engineering, Procurement and Construction (EPC) project proposal for the new 2nd substation. Moreover, in conformance to Edison's approved tariff, staff sent a Letter of Application to Edison, in order to obtain distribution service from Edison's 66kV sub- transmission lines. Staff prepared an "EPC Substation Request for Proposal- dated September 16, 2002 and this proposal solicitation was duly advertised in the local paper. Interested parties were invited to attend a non -mandatory pre -proposal meeting to answer questions about the proposed project before submitting their proposals. Six (6) EPC proposals were received at the City Clerk's office on October 9, 2002. Subsequently, staff commenced with the difficult task of evaluating and comparing the proposals that were submitted. As part of selection process, Azusa Light & Water retained the services of Navigant Consulting, an independent engineering consulting firm, to assist Azusa Light & Water in making a separate independent evaluation of the proposals. 162 By late October, Navigant Consulting completed their findings and their Summary Report narrowed down the selection �to two recommended EPC proposals, one by Black & Veatch Construction, Inc., and the other by Burns & McDonnell. Although neither of these proposals represented the lowest cost proposal among the six firms that responded, the facts and circumstances explained below provide the authority for Azusa Light & Water to select Black & Veatch Construction, Inc. without engaging in strict competitive bidding procedures. It should also be noted that Black & Veatch's proposal is the lowest among the two recommended by Navigant Consulting and the proposal solicitation was duly advertised in the local paper to allow interested parties to submit a proposal. By early November staff began to interview the two firms for additional questions or clarifications on their proposals. On November 6, 2002, a follow up meeting with Edison was held at their Rosemead headquarters office to discuss final details of Edison's portion of interconnection facilities at new substation. Also, during this meeting, Azusa staff briefly discussed in general with Edison, the terms and conditions of their distribution service agreement. At this point, Edison disclosed a last minute change of requirements with regard to inter -connecting their lines inside the 2ntl substation. This unforeseen Edison requirement resulted in a change in the scope of work required in the original EPC proposals received. Although Edison's change would involve a reduction in scope of EPC work, the cost associated with that change in requirements will be shifted and added to Edison's costs of service. Moreover, coordination on some portion of work between Edison and Azusa's EPC contractor would be needed in order to avoid delays and extra costs. On December 13, 2002, staff received in writing from Edison a revised estimate on the method of service, including Edison's interconnection facilities at the 2ntl Substation. Thereafter, staff used this Edison information to negotiate with the two competing bidders recommended by Navigant Consulting, a reduction on their original EPC Proposals. Finally, after careful evaluation, staff selected the bidder who is responsive, best qualified, experienced, and lower in cost. This successful bidder is Black & Veatch Construction Inc. At that point, staff began to negotiate a draft EPC Agreement for review by legal counsel based on a draft agreement provided by the bidder. Company: Original Amount Adjusted Amount Revised Amount (Final) 1) Black a Veatch $3,614,000 $3,987,000 $3,086,000 Construction Inc. 2) Burns &Mc Donnell $3,819,000 $4,016,434 $3,089,725 Strict Competitive Bidding Procedures Not Applicable The potential awarding of an EPC Agreement would constitute a Public Project pursuant to Article VII of Chapter 2 of the Azusa Municipal Code Regarding Bidding, Contracting and Purchases of Supplies, Services and Equipment. In accordance with the requirement of the Azusa Municipal Code, since the cost of the work exceeds $100,000, Azusa Light & Water is required to award a contract for such work to the lowest responsible bidder after engaging in competitive bidding, unless an exception from competitive bidding applies. In the present case, there are facts and circumstances which could point to the conclusion that it is practically impossible to obtain what is required for the EPC Project, while at the same time observing the form and procedures for competitive bidding. In particular, the facts and circumstances are as follows: I. The EPC Project requires specialized and complex design, engineering, procurement, construction and commissioning. There are only a limited number of contractors qualified 163 and capable of contracting for, and obtaining, the necessary equipment, materials and construction work necessary to bring the EPC Project on line. 2. Solicited EPC Proposals were based on a conceptual plan of the proposed substation project, since the detailed engineering /design will commence only once the contract is awarded. Hence, in the absence of detailed specifications as a basis, the proposal costs could vary significantly depending on the quality of items proposed and how responsive the proposals are to best meet the interests of Azusa Light & Water. 3. The qualifications and experience of the company in this type of specialized construction is a significant factor to consider. A company must have substantial and specific management expertise and experience in order to eliminate coordination problems with other third parties and to successfully provide the engineering, procurement and construction of the EPC Project. 4. Proposals submitted were adjusted (normalized) to make submitted proposals equitably conform to solicitation requirements. Therefore, even if a proposal originally appears to be the low bid, perhaps due to exclusions in their deliverables or unrealistic pricing on some items in their proposal, their final adjusted bid, plus other evaluation factors, will determine if the proposal deserves selection. As stated previously, Azusa Light 8, Water has the authority to determine that competitive bidding procedures are n6t-required for the award of an EPC Agreement if it finds that the advertisement for competitive bids is undesirable, impracticable, or impossible. The purposes of competitive bidding are to guard against favoritism, improvidence, extravagance, fraud and corruption; to prevent the waste of public funds; and to obtain the best economic result for the public. Therefore, if competitive bidding would actually result in a waste of public funds, would not obtain the best economic result for the public, and would be impracticable or impossible to implement, California law provides that competitive bidding will not be required. Therefore, it is recommended that the EPC Agreement be awarded to Black & Veatch Construction Inc. without implementing procedures for competitive bidding. This recommendation is based on the facts and circumstances set forth above. FISCAL IMPACT This EPC Substation project is budgeted during this fiscal year under Substation Capital Improvement Project and funds are available in account #33-80-000-730-7101/82000A. Azusa Light & Water 2nd electric substation estimated total cost and breakdown of major components is listed below. Only the EPC Substation contract portion is being awarded under this agenda memo. Item: Description Estimate: Note: 1) Land Acquisition $ 720,000 Paid in escrow July 2002 2) EPC SUh5tad0n $3,086,000 amount t0 be awarded -23 Dec. 2001 3) Edison 66W Lines $4,365,000 under separate Edison Contract Agreement 4) Azusa 12kV Lines $ 500,000 ------------- to be covered in CIP for fiscal year '03-'04 Estimated Total Cost: $ 8.67 Million Prepared by: F Langir Jr. PE Eleclncal Engineer 161 • • law .A4��t1 AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES� DATE: DECEMBER 23 2002 SUBJECT: AMENDMENT TO THE RISK POLICY AND AUTHORITY CONVEYANCE FOR POWER TRANSACTIONS RECOMMENDATION It is recommended that the Utility Board/City Council approve the proposed amendment outlined below to the Risk Policy.and convey proposed authority to Power Resource (Division) personnel to conduct short term power transactions . BACKGROUND In late 1999, the City Council approved a Risk Management Policy (Risk Policy) setting specific guidelines for the Division personnel to carry out the purchases and sales of electric power for the City. The Risk Policy, among other things, established specific transaction authorization levels for the Division personnel. On July 29, 2002 the Utility Board approved an interim authorization for (1) Power Resource Coordinator to conduct transactions at the authorization level of Assistant Director of Resource Management; and (2) Administrative Assistant in the Power Resource Division to conduct transactions at the authorization level of Power Resource Scheduler. Such interim authorization is to expire on the earlier of Dec. 31, 2002 unless extended. Since July 29, 2002 the newly created position of Power Resource Scheduler has been filled. Also, the Power Resource Coordinator and Power Resource Scheduler have de facto assumed the responsibilities of short power procurement activities. In view of continued need to define specific authorities for the power resource personnel engaged in procurement functions, staff recommends the following permanent changes to the Risk Management Policy: Change the procurement authority of Power Resource Coordinator to the same level as Assistant Director of Resource Management, i.e., procurement authority up to three 165 months. I 'I" 2. Revise the procurement authority for the Power Resource Scheduler to transactions up to one month. The proposed changes are reflected in the amended Exhibit A attached herein. FISCAL IMPACT There is no fiscal impact as a result of the actions taken in this agenda item. Prepared by: Bob Tang, Assistant Director Resource Management— Table 41 Risk M_Policy_Auth.doc PROPRIETARY AND CONFIDENTIAL ENERGY & CREDIT RISK MANAGEMENT POLICY Exhibit A: Table 4-1 Transaction Authorization & Limits (Revised) (1) The normal limit may be exceeded: a) to cover a short position resulting from an emergency, such as a sudden loss of generation or transmission, b) if part of the purchase displaces energy from a higher cost Azusa -controlled resource, or c) if the counter -party is exceptionally creditworthy. (2) Since transactions are opened primarily to balance load or generation, risk is primarily volumetric and an accurate load/resource balance is most important. The maximum `estimated volume" for a given period is equal to excess resources above the average load requirement. The maximum "estimated requirement" for a given period is equal to the load calculated from a stress test less available resources. 01999 Henwood Energy Services, Inc December 23, 2002 44 467 Assistant :R:ealime Power Director of Director of PTypemeet Resource Resource Resource Light & water ulers Schedulers Coordinator Management Department Purchases to Purchases to Purchases to Purchases to Purchases to load, meet load, meet load, meet load, meet load, covered sales covered sales covered sales, covered sales, covered sales, hedges hedges hedges Term Hourly to Day ahead to d Mont!MW MYMW Quarter ahead balance of day balance of to baf t -to balance of month qu year Largest Largest Transaction requirement to requirement Volume meet load, to meet load, 25 75 MW (1) sales form sales form excess excess Up to 100% of Up t0 100% Of Up t0 100% of Up to 110% of Up to 110% Of Total estimated estimated estimated estimated estimated Volume (2) requirement or requirement requirement or requirement or requirement or available or available available available available Counter- From pre- From pre- From pre- From pre- From pre- approved party credit approved credit approved approved approved credit list or list credit list credit list credit list with Letter of Credit (1) The normal limit may be exceeded: a) to cover a short position resulting from an emergency, such as a sudden loss of generation or transmission, b) if part of the purchase displaces energy from a higher cost Azusa -controlled resource, or c) if the counter -party is exceptionally creditworthy. (2) Since transactions are opened primarily to balance load or generation, risk is primarily volumetric and an accurate load/resource balance is most important. The maximum `estimated volume" for a given period is equal to excess resources above the average load requirement. The maximum "estimated requirement" for a given period is equal to the load calculated from a stress test less available resources. 01999 Henwood Energy Services, Inc December 23, 2002 44 467 P r. Azusa Utility Board Meeting December 23, 2002 .-v AZUSA tipwT A W{TEn Irm 468 V Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update 169 Status of Projects • Participating Transmission Owner Application — System testing scheduled for December 26 - 27 — Scheduling integration with CAISO on schedule to go live January 1, 2003. • Edison's Transmission Service Agreements — Completed • San Juan Project — Discussion with Los Alamos County on hold, pending review of SCPPA bond counsel on tax issues 170 CITY 00 A ihemy CONSUMPTION COMPARISON ENERGY CONSUMPTION N MWH CITY OF AZUSA PEAK DEMAND COMPARISON UCT NOV DEC _JAN FEB MAR APR MAY JUN PEAK DEMAND IN MW 171 FY01-02 PERCENT ,IUU02-03 . CHANGE AUG 21521 23581 9.56% SEP 22.908--- OCT .21242 --- 23 047. - --1.77%. 4-im NOV 26.485 20�90 -0.95% DEC 18,353 18.577 1.22% JAN FEB MAR APR MAY JUN ENERGY CONSUMPTION N MWH CITY OF AZUSA PEAK DEMAND COMPARISON UCT NOV DEC _JAN FEB MAR APR MAY JUN PEAK DEMAND IN MW 171 AVERAGE AVERAGE MONTH ON PEAK PRICE OFF PEAK PRICE JAN 02-00 ZbVldli3.66 $16.05— FEB 02 -- $*.0o MAR 02 $U.60 V8.60 APR 02 $29.00 $17.00 MAY 02 V6.59 v 5m JUN 02 $32.20 $11.26 JUL 02 $38.73 -i3b.96 $15.70 AUG 02 $id.oB SEP 02 t3l.0 M -A9- OCT02 $32.97 M.04 NOV 02 $32.59 U4.53 DEC 02 JAN 63 FEB 03 ALL PRICES IN$lMWF{ 172 Power Resource Cost Accounting FY '02-'03 173 ----- LONGTERM -CONTROGTS--" SHORT MRM A9JNTN -PURCHASER -.SCHEDULING ---- LES�E JUL 02C�m DIS-PATCHINUGL16N6itIi ---- ---I -_ -, N� R�IuEs SEP(d 6020393i ... ..... ;��O 9� 07 14 SASI ;:III!; (710.02 70)� 1,561 MT02 002.0347 l.a23,U9I 670M-9.15 14593$.0 - ----- '0 574 22,alg,17 --- -73 2,136,903-00 2) 1,517204,07 NOV02 739.75215 14i934 if �93 0,� Od am --2.'U- ---- --------- 92. - _1� - ----- -- DEC I OUS.MO,74 727,4M.75 100.341.53 0 21_M2527 30.349,M 02 _'O .0 15.077,35 (323270,89), IM G3 0.06 FED 03 MAA 03 . 00 . 0.100 0,00 ----------------- - ----- 7- .-04,09 JUN . 05 - ----- - - - ------ 0 173