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HomeMy WebLinkAboutAgenda Packet - January 29, 2003 - UB ,�ZUSt1 AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL THE REGULARLY SCHEDULED UTILITY BOARD/CITY COUNCIL MEETING OF MONDAY, JANUARY 27, 2003, HAS BEEN RESCHEDULED TO WEDNESDAY, JANUARY 29, 2003, AT 6:30 P.M. AT THE AZUSA LIGHT AND WATER DEPARTMENT CONFERENCE ROOM. AZUSA LIGHT &WATER WEDNESDAY, JANUARY29, 2003 729 N. AZUSA AVENUE 6:30 PM AZUSA, CA 91702 AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON DICK STANFORD DAVE HARDISON VICE CHAIRPERSON BOARD MEMBER CRISTINA C. MADRID IOSEPH R. ROCHA BOARD MEMBER 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 (PersonlGroup shall be allowed to speak without Interrupt/on up to Ave (S)minutes maximum time, sub)ect to comp/lance with applicable meet/qg ru/es. Quest/ons to the speaker or responses to the speaker's questions or comments, shall be handled after the speaker has completed his/her comments. Public Part/c/padon will be limited to sixty(60)minutes time.) The Consent Calendar adopt/ng the printed recommended act/on wl//be enacted with one vote. /f Staff or CounciGnembers wish to address any Item on the Consent Calendar individuai/y, it wi//be considered under 001 SPECL4L CALL ITEMS. 11. CONSENT CALENDAR A. Minutes. Recommendation: Approve minutes of regular meeting of December 23, 2002, as written. i II-A. Minutes 12-23-02 B. Purchase of 2003 Hydro Excavation Vacuum) Truck. Recommendation: Award bid and authorize purchase of a 2003;Hydro Excavation (Vacuum) Truck to Haaker Equipment Company in amount of $190,970.32. I II-B.Vacuum Truck C. Utility Payment and Collection Practices. Recommendation: Adopt resolution to approve changes in the Electric and Water Rules and Regulations of accepting credit card payments to $500 or less, and approve the request to join California Utility Exchange for one year and initiate a request for proposals for collection agency service. i I II{,Collection Strategy Changes D. Purchase of Avava G3R Phone System Upgrades, Recommendation: Approve purchase of Avaya G3R phone system upgrades from Daycom Systems and authorize City's Purchasing Officer to execute a Purchase Order in amount not to exceed $82,500. _ I i II-D.OR Upgrade E. Prosect W-1 79Foothill and Barranca Water Main Prosect. Recommendation: Authorize to advertise Project W-179, Foothill and Barranca Water Main Project, and to receive bids. I f i II-E Project W-179 F. Project W-184 Relining of 20-Inch Waterline from Well No. 10 to the Wilson Reservoir. Recommendation Authorize to advertise Project W-184, Relining of 20-Inch Waterline from Well No. 10 to the Wilson Reservoir, and to receive bids. I1-F. Project W-184 G. Prolect W-185. 12 Inch Waterline Crossing Big Dalton Wash at Gladstone. Recommendation: Authorize to advertise Project W-185, 12-Inch Waterline Crossing Big Dalton Wash at Gladstone, and i 2 002 to receive bids. , IIS Project W-185 Ill. SCHEDULED ITEMS A. Lease Arrreemerrt with U.S Forest Service Recommendation: Approve the lease agreement with the U. S. Forest Service for its lease of the San Gabriel Canyon Information Station and authorize the City Manager to execute the agreement. III-A. Forest Svc Lease - - - B. Pilot Water Conservation Grant Prosdam Recommendation: Authorize staff to develop Pilot Water Conservation Grant Program to promote use of drought tolerant plants/trees for landscaping for one year with a budget not-to-exceed $150,000. E Ill-B. water Cons to Grant Prgrm IV. STAFF REPORTS/COMMUNICATIONS A. SB 1078 Renewables Portfolio Standards E IV-A- SB 1078 Renewables Portfolio _ B. Waste Diversion and Disposal Trend Report IV-B. Diversion Disposal Report C. Allocation of Replacement Water W-C. Allocation by Waterrtester 3 003 D. Transforming Azusa Into an Urban Foresk N-D.Tree Report E. Power Resources Division Monthly Report I N-D. Power Resors Month Repoli F. Change Order Policy and Procedure N-F.Change Order u Policy&Procedure i - G. Workplan Updates for Fiscal Year 2002-03 from July 1 to December 31 u IV-G. 2002to03 ., WIPLN-lst&2ndQtr H. Presentation of San Gabriel River Master Planning by Assistant City Manager Robert Person and North East Trees V. DIRECTORS' COMMENTS i VI. ADIOURNMENT I A. Adjournment. i I I %n compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city meeting,please contact the City Clerk at 626-812-5229. Notification three (3) worldng days prior to the meeting or time when special services are needed will assist staff In assuring that reasonable arrangements can be made to provide access to the meeting." I I i i 4 00� i i U r CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL WEDNESDAY, JANUARY 29, 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 Roil Call PRESENT: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID ABSENT: COUNCILMEMBERS: NONE Also Present ALSO PRESENT: City Manager Cole,Assistant City Manager Person,Assistant to the Director of Utilities Kalscheuer, Assistant Director of Water Operations Anderson, Assistant Director of Resource Management Tang,Administrative Technician Yang, Business Development/Public Benefits Program Coordinator Reid, Information Systems Staff Graf-Gaynor, Wofford, and Morningstar, Consultant Suzanne Avila, Deputy City Clerk Toscano, City Clerk Mendoza. Public Participation Pub Part None. None. It was consensus of Councilmembers that items III-A, Lease Agreement with U.S. Forest Services Items ill-A and IV-H, Presentation of San Gabriel River Master Planning by Assistant City Manager Person and &IV-H Representatives of North East Trees, be brought forward for handling at this time. brt fwrd Assistant City Manager Robert Person addressed the issue providing background information Asst City regarding the San Gabriel River Master Planning and the relationship with North East Trees, who Mgr aided the City in obtaining the million dollar grant to begin the process. He also noted that the Comments Lease Agreement with U.S. Forest Service is a related issue and will also be considered at this time. HOT Ms.Claire Robinson,Executive 4irector of North East Trees,and Sarah Easley, Project Manager for C. Robinson >f the Vision Plan of Azusa addressed the Council presenting the San Gabriel Canyon Vision Plan and &S. Easley"� Design Guidelines for thelAausa Canyon area. She distributed the Executive Summary that they North East will be presenting in February. She noted project goals are to enhance the recreational and Trees educational opportunities in the San Gabriel Canyon, to facilitate ecosystem restoration and to develop a cohesive regional identity. She noted four projects that are currently in planning stages by the City of Azusa in the canyon: San Gabriel River Regional Bike Path Extension, San Gabriel Canyon Spreading Basins Landscape Improvement Project, San Gabriel River and Angeles National Forest Gateway Interpretive Center, and the Azusa Canyon River Park and detailed each project and answered questions posed by Councilmembers. Assistant City Manager Robert Person presented the Lease Agreement with the U.S. Forest Service R. Person for a new and larger ranger station at the Azusa entrance to the San Gabriel Canyon. He stated Comments that there are now $350,000 in grant funds committed to the Interruptive Gardens and they are trying to defray costs. The agreement calls for the City to construct a building which will provide occupiable space no less than 868 square feet and sufficient parking to include no less than 15 visitor parking spaces. The Forest Service agrees to pay the $12,000 per year as lease payment provided that if the City obtains a federal grant, or other federal funding, in connection with construction and installation of the Building, said funds shall be applied to the annual rental amount. Said rental amount is also subject to future adjustments. Discussion was held regarding the specifications of the proposed building which included Discussion materials, river rock, masonry, wheat color, surfaces, etc. Additional discussion was held regarding term of lease, grant funds and surrounding landscaping. The fiscal impact consists of the current budget from Water Division which has appropriation of about $700,000 for the project. Of this amount, $91,000 is budgeted for architectural services, $400,000 for the building, and $200,000 for landscaping and paving around the building. Moved by Councilmember Stanford, seconded by Mayor Pro-Tem Hardison and unanimously Lease Atigmt carried to approve the lease agreement with the United States Department of Agriculture, or U.S. Forest specifically with the U.S. Forest Service, for its lease of the San Gabriel Canyon Information Station Service. and authorization was given to the City Manager to sign same. The CONSENT CALENDAR consisting of Items II-A through II-G, were approved by motion of Consent Councilmember Stanford, seconded by Chairperson Chagnon, and unanimously carried with the Calendar exception of item 11-D, which was considered under the Special Call portion of the Agenda. 11-D Spec A. The minutes of the regular meeting of December 23, 2002, were approved as written. Min appvd B. Approval was given to award the bid for the purchase of 2003 Hydro Excavation (Vacuum) Hydro Exc Truck to Haaker Equipment Company in the amount of $190,970.32. Haaker Equip C. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA UTILITY BOARD/CIN Res. 03-05 COUNCIL OF THE CITY OF AZUSA,AMENDING SCHEDULE OF CHARGES AND RULES AND Amend Sch REGULATIONS GOVERNING THE ELECTRIC AND WATER SERVICE SUPPLIED BYAZUSA LIGHT Charges & &WATER. Rules L&W D. SPECIAL CALL ITEM. Spec Call E. Authorization was given to advertise Project W-179, Foothill and Barranca Water Main Project Prj W-179 and receive bids. Fth R Brnca F. Authorization was given to advertise Project W-184, Relining of 20-inch waterline from Well Prj W-184 No. 10 to the Wilson Reservoir and receive bids. Waterline Wilson Res. 01/29/03 PAGE TWO 005 G." Authorization was give to advertise Project W-185, 12 inch waterline crossing Big Dalton Prj W-185 Wash at Gladstone and advertise for bids. Waterline Big Dltn Wsh Special Call Items Spec Call Items Information Systems Managers Graf-Gaynor, Wofford, and Morningstar provided a presentation Presentation on the proposed new telephone system to be provided by Daycom Systems. They provided a of Avaya detailed history of the current telephone system as well as the need for phone system upgrades G311 due to obsolete systems throughout the City. They also noted the special enhancements that will Phone system be provided with the new system. Moved by Councilmember Stanford, seconded by Chairperson Chagnon and unanimously carried Purchase of to approve the purchase of the Avaya G3R phone system upgrades from Daycom Systems and Phone system authorize City's Purchasing Officer to execute a Purchase Order in an amount not-to-exceed Daycom $82,500. Systems Scheduled Items Sched Items Assistant Director of Resource Management Tang addressed Council presenting the concept of B. Tang proposing the development and implementation of a Pilot Water Conservation Grant Program Pilot Prgm which consists of making funds available to residents, businesses, and schools, for drought Water resistant plants and trees. He detailed the application process and advised that staff will set grant Conservation amounts with a budget of $150,000 in grant funds. Moved by Councilmember Stanford, seconded by Councilmember Rocha and unanimously carried-to authorize staff to develop a pilot water conservation grant program to promote use of drought tolerant plants/trees for landscaping for a period of one year with a budget not-to-exceed $150,000. Staff Reports/Communications Staff Rpts Assistant Director of Resource Management Tang addressed item regarding SB 1078-Renewable SB 1078 Portfolio Standards, stating that this bill requires that retail sellers increase their purchase of Renewable energy from renewables by at least I% per year until a renewables portfolio standard is reached Portfolio which makes up 20% of seller's overall energy purchases. He stated that although municipal Standards utilities are not regulated by State agencies, the legislation has language strongly encouraging them to follow the same guidelines. He presented and detailed three options for discussion for achieving the mandate. It was consensus of Councilmembers that quarterly updates on the issue be provided to the Utility Board. Assistant to the Director of Utilities Kalscheuer addressed item regarding Waste Diversion and C. Kalscheuer Disposal Trends Report stating that for the calendar year 2001, the City reached a diversion rate Waste of 53% Which will be reported to the State as the City's official diversion rate. He stated that in Diversion & December 2002 there was an increase of yard waste diversion by 40% compared to December Disposal 2001 and the approximate savings is about $2,800 in MRF processing costs for I month. Trend Rpt Allocation of Replacement Water item was presented for Information purposes. Replace Water Transforming Azusa into an Urban Forest item was presented for Information purposes, Azusa— Councilmembers requested that staff continue providing updates on the issue. Urban Forest 01/29/03 PAGE THREE B. Tang 006 Assistant Director of Resource Management Tang provided an update on the Negotiations Update ~ with Edison regarding the New Substation Agreement and Edison proposed 400% increase In Edison wholesale distribution charges to Azusa. Change Order Policy and Procedure item was presented for information purposes. Policy The FY 2002-2003 Work Plan Updates for Azusa Light and Water was presented. Chairperson Work Plan Chagnon requested that staff explain the Azusa Advantage, Azusa Today and Azusa Tomorrow. 02.03 City Manager Cole responded stating that Azusa Tomorrow is an information newsletter that goes out to the public once a month. Azusa Today was a television show that is no longer in operation. The Azusa Advantage is a team approach to media communication to get out the message about Azusa being a good place to live. Directors' Comments Director's Comments Chairperson Chagnon advised that she would like to see information on Measures L S.M before they go out to the public. Discussion was held regarding Hands Across Azusa. 17 Assistant to the Director of Utilities Kalscheuer advised that staff is currently looking at the format C. Kalscheuer of the report and may be proposing some changes in the future. Comment It was consensus of Councilmembers to adjourn. Adjourn TIME OF ADJOURNMENT: 8:42 P.M. SECRETARY NEXT RESOLUTION NO. 03-C6. 01/29/03 PAGE FOUR OQTI San Gabriel Canyon Vision Plan and Design Guidelines w� Executive Summary North East Trees for the t City of Azusa,California January 2003 I t The San Gabriel Canyon, located at the gateway between the steep and rugged San Gabriel Mountains and the highly urbanized San Gabriel Valley, is a unique and special resource in Southern California.The canyon has unparalleled beauty as well as rare and sensitive biological resources.There are critical water utility operations, valuable sand and gravel mining operations and residential developments all in close proximity to wilderness of Angeles National Forest. As land is developed and developmental pressures continue to increase in the Canyon itself and along the entire San Gabriel River, it is becomes increasing important to carefully plan for the long term sustainability of the valuable resources the canyon offers. The San Gabriel Canyon Vision Plan and Design Guidelines provides a framework for future restoration and watershed sensitive development of the San Gabriel River and Canyon in the city of Azusa,California. The plan seeks to address the following goals: to enhance recreational and educational opportunities in San Gabriel Canyon, to facilitate ecosystem restoration in San Gabriel Canyon and to develop a cohesive regional identity for San Gabriel Canyon. A detailed examination of the Canyon's context including its regional and local context, historical context, planning context, and site character provides the basis for recommendations regarding future projects in the Canyon.These recommendations are applied to four projects currently in planning stages by the city in the canyon: San Gabriel River Regional Bike Path Extension,San Gabriel Canyon Spreading Basins Landscape Improvement Project. San Gabriel River and Angeles National Forest Gateway Interpretive Center, and the Azusa Canyon River Park. In addition to these four projects, an examination of trail connections and a riparian habitat restoration plan form the basis of a long term sustainable vision for the canyon presented in 3 phases: present through 2005, 2005—2009,and 2009—2059. To provide the tools required to fulfill this vision,design guidelines and standards are given. The guidelines offer direction for sustainable construction practices and a unified aesthetic for the canyon. They are presented in four categories: paths and surfaces, metalwork and fencing, lighting, and amenities. Detailed signage standards including sample layouts provide a uniform pallet of directional signage, interpretive signage, kiosks and safety signage. General planting guidelines,including a description of the native planting ethic and water conserving drip irrigation,offer the final part of the tools to achieve the fulfillment of a sustainable future for San Gabriel Canyon. For future reference,a description of the project implementation process is provided, including project management strategies from project conception,to survey,to permitting, to implementation with special consideration for environmental impacts of development in natural resource areas. The city of Azusa has a unique opportunity to lead in the protection of the natural resources of the San Gabriel watershed,river and canyon.We offer this study with the hope that it will serve as a valuable tool in maximizing the protection and beauty of the San Gabriel Canyon in the Azusa. San Gabriel Canyon Vision Plan and Design Guidelines Executive Summary North East Trees for the t City of Azusa, California January 2003 The San Gabriel Canyon, located at the gateway between the steep and rugged San Gabriel Mountains and the highly urbanized San Gabriel Valley, is a unique and special resource in Southern California.The canyon has unparalleled beauty as well as rare and sensitive biological resources.There are critical water utility operations, valuable sand and gravel mining operations and residential developments all in close proximity to wilderness of Angeles National Forest. As land is developed and developmental pressures continue to increase in the Canyon itself and along the entire San Gabriel River, it is becomes increasing important to carefully plan for the long term sustainability of the valuable resources the canyon offers. The San Gabriel Canyon Vision Plan and Design Guidelines provides a framework for future restoration and watershed sensitive development of the San Gabriel River and Canyon in the city of Azusa,California. The plan seeks to address the following goals:to enhance recreational and educational opportunities in San Gabriel Canyon, to facilitate ecosystem restoration in San Gabriel Canyon and to develop a cohesive - regional identity for San Gabriel Canyon. A detailed examination of the Canyon's context including its regional and local context, historical context, planning context, and site character provides the basis for recommendations regarding future projects in the Canyon. These recommendations are applied to four projects currently in planning stages by the city in the canyon: San Gabriel River Regional Bike Path Extension, San Gabriel Canyon Spreading Basins Landscape Improvement Project, San Gabriel River and Angeles National Forest Gateway Interpretive Center,and the Azusa Canyon River Park. In addition to these four projects,an examination of trail connections and a riparian habitat restoration plan form the basis of a long term sustainable vision for the canyon presented in 3 phases: present through 2005, 2005—2009,and 2009—2059. To provide the tools required to fulfill this vision,design guidelines and standards are given.The guidelines offer direction for sustainable construction practices and a unified aesthetic for the canyon, They are presented in four categories:paths and surfaces, metalwork and fencing, lighting, and amenities. Detailed signage standards including sample layouts provide a uniform pallet of directional signage, interpretive signage,kiosks and safety signage. General planting guidelines, including a description of the native planting ethic and water conserving drip irrigation, offer the final part of the tools to achieve the fulfillment of a sustainable future for San Gabriel Canyon. For future reference, a description of the project implementation process is provided, including project management strategies from project conception, to survey,to permitting, to implementation with special consideration for environmental impacts of development in natural resource areas. The city of Azusa has a unique opportunity to lead in the protection of the natural resources of the San Gabriel watershed, river and canyon.We offer this study with the hope that it will serve as a valuable tool in maximizing the protection and beauty of the San Gabriel Canyon in the Azusa. About North East Trees North East Trees (NET) is a nonprofit environmental organization dedicated to designing, constructing and preserving green space in Northeast Los Angeles. Since 1990, NET has planted over 18,000 trees. Founded by Scott Wilson - an educator, landscape architect, contractor and arborist - the grassroots organization is recognized for its creation of innovative, native-based sustainable designs, and forging bonds between their projects and the communities around them. "Ifigured out a long time ago - more trees are better."—Scott Wilson URBAN GREENWAY ON THE LOS ANGELES RIVER AND ARROYO SECO Principal among NET's long-term goals is to improve the environment and recreational value of the Los Angeles River, the Arroyo Seco and other city riverways. In 1992, NET began work to obtain funding and permits, design, install and maintain a greenway along the urban rivers and streams in Northeast Los Angeles, an area rich with historical bridges, communities and natural habitat. These rivers once formed an important wildlife corridor linking the Santa Monica Mountains with the San Gabriel Mountains, but today are heavily urbanized and fragmented. As a result of these efforts, today over 10 miles of the Los Angeles River and Arroyo Seco have been planted with thousands of native trees, creating miniparks, wildlife habitat and improving access for pedestrians and cyclists. The greenway development of NET links the area's three major parks - Griffith, Elysian and Debs - and is a model for interagency cooperation to improve watersheds in an urban setting. NET has taken a leadership role in conservation planning. In 2001, NET's Arroyo Seco Watershed Restoration Feasibility Study was voted a top watershed model for the state by lawmakers in Sacramento. NET is also preparing a Riparian Habitat Restoration Study for the City of South Gate. Ultimately, NET hopes to create a greenway corridor along waterways from the mountains to the Pacific Ocean. WATERSHED PLANNING & STREAM RESTORATION NET has completed the watershed restoration feasibility study for the Arroyo Seco in conjunction with the Arroyo Seco Foundation. NET is currently working on a watershed restoration plan including education and outreach for the Arroyo Seco. NET is engaged in watershed sensitive master planning for the city of Azusa. NET is working on cutting-edge projects that will address issues of water quality and water supply for the region. NET is working on a restoration of the San Josh and Lario Creeks in the San Gabriel River watershed. NET is mapping historic streams throughout the region including Ballona, Arroyo, and L.A. watersheds. STREET TREES AND TREE CARE Street trees directly contribute to improved air and quality of life. NET has worked closely with thousands of Los Angeles residents to plant trees on over 50 local city streets. To support and encourage proper care of young trees, NET periodically schedules tree care and pruning workshops to train local gardeners and homeowners. 570W.Avenue 26,Suite 200,Los Angeles.California 90065 Phone:(323)441-8634 Fax: (323)441-8618 North East Trees is a non-profit organization improving communities in Northeast Los Angeles by planting an urban tures(. TRAINING AND ENRICHMENT FOR AT-RISK YOUTH NET provides ongoing training and employment for local at-risk youth. The staff uses urban forestry as the vehicle for skill training, teamwork and personal responsibility...all the while making a visible difference in local communities. Youth considered at-risk develop employment skills, contribute to their communities and earn a paycheck. The involvement of young people in our programs is central to our mission. VOLUNTEERS AND OUR COMMUNITY NET offers opportunities for the community to get involved in our programs. Volunteer events occur every month and encourage community pride and participation while giving individuals a chance to learn about tree planting, habitat restoration, tree care and the environment in their own community. EDUCATION AND CAMPUS GREENING NET has completed over 35 forestry projects at local schools. These projects include planting shade trees to beautify, save on energy costs and improve air quality. Each planting design is based on the specific needs of the site and the interests of the campus community. Schools participating in the "Green 'Islands" and "Cool Schools" programs have also benefited from the education programs delivered classroom by classroom teaching how to adopt and care for the young trees. NATIVE HABITAT RESTORATION PROJECTS NET has restored unique and rare habitat lands including the Southern California Black Walnut woodland in Rainbow Canyon and Elyria Canyon Park in Mount Washington as well as critical habitat along the Los Angeles River and the Arroyo Seco. NET works diligently with conservation ecologists to rehabilitate lands, utilize native plant materials and restore diversity. WORK WITH PUBLIC AGENCIES NET possesses a sterling reputation for professionalism, working closely with public agencies on several levels including funding, permitting and cooperative partnerships. NET's programs are structured to incorporate elements required by funding agencies such as employment for youth, low administrative and overhead costs, compliance with required schedules and detailed reporting and documentation of projects. Funding from public agencies has included LA County Regional Parks and Open Space District, the California Department of Transportation, California ReLeaf, Metropolitan Transit Authority, the California Department of Forestry and the Department of Water and Power (DWP). Permitting agreements exist with LA County Department of Public Works,CalTrans, City of LA Street Tree Division, DWP and the U.S. Army Corps of Engineers. NET has developed cooperative programs with the Mountains Recreation and Conservation Authority, a joint powers authority of the Santa Monica Mountains Conservancy, to develop the LA River Greenway. North East Trees welcomes donations. Money, tools, planting materials and services are always needed. To donate to NET, a tax-exempt public benefit corporation, write to: NORTH EAST TREES, 570 W. Avenue 26, Suite 200, Los Angeles, CA 90065. Call Allan Lee Haskell at NET for an update of volunteer opportunities (323)441-8634 or check out our website at www.northeasttrees.org or e-mail: allan @northeasttrees.org. EXHIBIT A CURRENT RATE SCHEDULE On a monthly basis, subscriber shall be charged a Subscription Fee of $450.00 which will be billed in arrears and a one-time set-up fee of$750.00. For the Subscription Fee set forth above, Equifax will provide: 1) Initial set-up and standard operational availability for batch processing of subscriber information; 2) Full documentation on the use of the EXCHANGE system; 3) Delivery of EXCHANGE system reports to central customer site electronically or US Mail; (Priority Mail would be at customer' s expense.) 4) Training of two days for Subscriber personnel in the effective and knowledgeable use of the EXCHANGE system. 5) Quarterly review with Subscriber management as to system effectiveness; and 6) Standard system User and Management reports. 7) Data enrichment for incorrect or invalid Social Security Numbers Subscriber is encouraged to provide an initial load of up to six (6) months of CSA records and twenty - four (24) months of UCA records and (6) months of CSA. City of Azusa Exchange Agreement(final) - LRD 1-17-03 _ excess of the two day training period, such training will be charged in accordance with ETUS' fee schedule as of the requested date. Subscriber agrees to pay invoiced amounts within 30 days after receipt of invoice. 6. This Agreement will be for an initial term of 1 year at the rate indicated in Exhibit A. On or before the 1 year anniversary, Subscriber may select from an additional.1, 2, or 3 year renewal term. Either party may terminate this Agreement, and the applicable term, for any reason or no reason, upon at least (90) days prior written notice to the other party. The obligations and agreements of set forth in the third and fourth paragraphs above will remain in force upon the termination of this Agreement. In the event that this Agreement is terminated, all Subscriber information will be deleted from EXCHANGE within thirty (30) working days of the effective date of termination. Notices shall be sent by fust class mail, postpaid to the Subscriber at 213 E. Foothill Blvd., Azusa, CA 91702 and to Equifax Information Services LLC at 1550 Peachtree Street NW, Mail Drop IIA, Atlanta, Georgia 30309, Attention: EXCHANGE Administration. 7. Subscriber understands the EXCHANGE reports are consumer reports, as defined by the Fair Credit Reporting Act, and certifies that such reports will be requested only when intended to be used as a factor in establishing a consumer's eligibility for new or continued credit, collection of an account, or otherwise in connection with a legitimate business transaction involving the consumer and such reports will be used for no other purpose. 8. We understand and agree that this instrument constitutes all agreements and conditions of the parties relating to the subject matter hereof and supersedes all prior agreements or representations, oral or written. No changes in this Agreement may be made except by consent in writing of an officer of Equifax Information Services LLC and an authorized representative of Subscriber. 9. City of Azusa will have the opportunity to match with all future and existing members of the California Utility Exchange. 10. Subscriber hereby engages ETUS as an independent contractor to furnish all materials and to perform all work according to the terms and conditions of this Agreement. 11. Neither parry may assign its rights or obligations under this Agreement without the written consent of the other party. 12. This Agreement shall be governed by the laws of the state of California. SUBSCRIBER: CITY OF AZUSA EQUIFAX TELECOMMUNICATIONS AND UTnrrIES SERVICES, Address 213 E. Foothill Blvd. A division of Equifax Information Services LLC: City, State Azusa, CA 91702 By: By: Title: Title: Date: Date: City of Azusa Exchange Agreement (final) — LRD 1-17-03 �l EQUIFAX TELECOMMUNICATIONS and UTILITIES SERVICES AGREEMENT FOR SERVICE Customer Wonnation EXCHANGE Systems Equifax Telecommunications and Utilities Services (ETUS), a division of Equifax Information Services LLC, has available to subscribing utilities and telephone companies throughout North America, an automated information service known as EXCHANGE, which files, stores and retrieves information on new customer accounts and delinquent accounts for the purpose of identifying potential financial risks and locating consumers who have delinquent accounts. 1. The undersigned Subscriber, desiring to use EXCHANGE services at the price set forth in Exhibit A, agrees to furnish, at least monthly, in an ETUS specified format, information which, at a minimum, includes: current listings of customer service applications, unpaid closed accounts of $25.00 or more, and updates to such unpaid closed accounts reflecting their current status. The current listings shall cover the period from the cut-off.date of the previously submitted magnetic tape through the present cut-off date. 2. All information filed, stored and processed through the EXCHANGE System is treated confidentially and is provided unique identification code, which identifies Subscriber and prevents unauthorized access and retrieval. Subscriber's information is fully separable from other subscriber information and is considered proprietary in nature. 3. Subscriber agrees that EXCHANGE match information will be requested only for the Subscriber's exclusive use and all EXCHANGE match information received will be held in strict confidence, except to the extent that disclosure to others is required by law. In compliance with applicable credit reporting acts, a record of all match activity on Subscriber accounts is kept by ETUS for six months after the match occurs. 4. Recognizing the information is secured by and through fallible human sources and that for the fee charged, ETUS cannot be an insurer of the accuracy of the information, Subscriber understands and agrees that the accuracy of any information furnished is not guaranteed and releases ETUS, its agents, employees, independent contractors, subscribers and sources from liability for negligence in connection with the preparation of reports and from any loss or expense suffered by Subscriber resulting directly or indirectly from such report information. This release from liability shall not apply to any liability, cost or expense suffered by Subscriber resulting directly from any disclosure or dissemination of information which ism violation of the obligations of ETUS as provided in Section 2 of this Agreement. ETUS likewise releases Subscriber, its agents, employees, and independent contractors from liability for negligence in connection with its submitting information to ETUS for EXCHANGE and from any loss or expense suffered by ETUS resulting directly or indirectly from such information. 5. Current rates and conditions for EXCHANGE service are set forth in Exhibit A, attached hereto and incorporated herein. Included in these charges are initial set-up; operational availability for batch processing of Subscriber information; documentation on the use of EXCHANGE; and initial training for Subscriber personnel in the effective and knowledgeable use of the EXCHANGE System. In the event ETUS is requested to provide initial or additional training in City of Azusa Exchange Agreement (final) — LRD 1-17-03 - --1 I � 1 - E r EXHIBIT A" Proposed Changes to Rules and Regulations ELECTRIC RULE CHANGES Changes to take effect February 1, 2003, text to be deleted is highlighted in strikeeut. Changes to take effect February 1, 2003, text to be added is highlighted in underline. Text that is not highlighted is current and is being provided for context and reference. Amendment to Rule No. 8 Rendering and Payment of Bills F. CREDIT CARD CHARGE: The credit card payment option is limited to $500.00 or less. If the customer's credit or debit card payment is rejected or payment returned to Azusa Light&Water, there will be a $20.00 return fee added to the customer's account in addition to the original payment. A notice will be mailed to the customer, notifying them to pay the total amount due in cash, cashier's check, or money order by the due date on the notice. If the charges are not paid by the due date, the utility service will be discontinued. In addition, credit card or debit card payments will not be accepted on the customer's account for a period of six months. A second returned credit or debit card payment will result in the account being permanently prohibited from accepting further debit or credit card transactions. When the credit card account number is given over the telephone, it is required to send by facsimile, proof of identification to prevent credit card fraud. WATER RULE CHANGES Amendment to Rule No. 7 Rendering and Payment of Bills E. CREDIT CARD CHARGE: The credit card payment option is limited to $500.00 or,less. If the customers credit or debit card payment is rejected or payment returned to Azusa Light&Water, there will be a $20.00 return fee added to the customers account in addition to the original payment. A notice will be mailed to the customer, notifying them to pay the total amount due In cash, cashier's check, or money order by the due date on the notice. If the charges are not paid by the due date, the utility service will be discontinued. In addition, credit card or debit card payments will not be accepted on the customer's account for a period of six months. A second returned credit or debit card payment will result In the account being permanently prohibited from accepting further debit or credit card transactions. When the credit card account number is given over the telephone, it is required to send by facsimile, proof of identification to prevent credit card fraud. lie CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, DECEMBER 23, 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. Councilmember Stanford called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: Also Present City Attorney's Ferre and Martinez of BBK, City Manager Cole, Director of Utilities Hsu,Assistant to the Director of Utilities Kalscheuer,Assistant Director of Customer Care and Solutions Vanca, Assistant Director of Resource Management Tang, Electrical Engineer Langit,City Clerk Mendoza. Public Participation Ir I Pub Part Utilities Director Hsu Introduced Mr.Steven Yang,the new Administrative Technician, in the Azusa Intro S.Yang Light and Water Department that will be assisting with the preparation of the Agenda/Minutes for Admin Tech the Utility Board meetings as well as other duties in the department. The CONSENT CALENDAR consisting of Items II-A through II-G, were approved by motion of Consent Cal Chairperson Chagnon,seconded by Councilmember Hardison, and unanimously carried with the II-E &11-F exception of items II-E and F, which were considered under the Special Call portion of the Spec Call Agenda. Min appvd A. The minutes of the regular meeting of November 25, 2002, were approved as written. Purchase B. Authorization was given to waive formal bidding procedures and award the purchase of a Backhoe John Deere Backhoe to Coastline Equipment In the amount of $56,949.73 under the Coastline California Multiple Award Schedule (CMAS Contract No. 4-01-38-0012A). 005 12/23/02 PAGE TWO C. Approval was given to adopt specifications for a Hydro Excavation (Vacuum) Truck and Spec Hydro authorization was given to the City Clerk to advertise.for bids. Exca Truck D. Approval was given to amend the blanket purchase order to the Upper San Gabriel Valley Amend P.O. Municipal Water District in the amount of$80,000 for the fiscal year ending June 30, 2003. USGVMWD E. SPECIAL CALL ITEM. Spec Call F. SPECIAL CALL ITEM. Spec Call G. The plans and specifications for the "Traffic Signal Improvements at the Intersection of Plans &Specs Gladstone and Pasadena" were approved and the City Clerk's Office was authorized to Traffic Signal advertise for bids. lmpvmts Special Call Items Spec Call Items Councilmember Rocha addressed Item regarding consulting service agreement for sewer-line Rocha improvements projects asking how residents would be notified that the streets were going to be in Comments disrepair and the time frame for the project. Director of Public Works Nakasone responded stating that residents would be notified before the Dir PW project begins in approximately March or April of 2003. Response Moved by Councilmember Rocha,seconded by Councilmember Stanford and unanimously carried Agmt w/RCE to approve the Consulting Service Agreement with RCE Consulting Engineers for the Sewer-line Sewer Line Improvements project in the amount of $128,805. Impvmts Councilmember Rocha addressed item regarding the Pavement Management Plan Improvements, Rocha stating that earlier this year he asked about the alley that runs from Alameda to Pasadena between Comments First and Second Streets,which was supposed to be on the September workplan, and noted that the alley is in need of clean up. He asked what the status of the alley was, since there are drainage problems, etc. Chairperson Chagnon asked when the re-stripping of cross walks on Ninth Street would be completed. Director of Public Works Nakasone responded stating that he would look into both matters. Dir PW Moved by Councilmember Rocha,seconded by Councilmember Stanford and unanimously carried Specs Pvmt to approve specifications for the Pavement Management Plan Improvements project. Mgmt Plan Scheduled Items Sched Items Assistant Director of Customer Care and Solutions Vanca provided a presentation on the results of K. Vanca a Customer Survey conducted with regard to the Light&Water's service baseline, which can be Customer used to improve customer satisfaction by benchmarking, setting performance targets, training, Service monitoring, and giving employee feedback in key customer contact areas. The survey was Survey conducted by Satisfaction Development Systems (SDS) and it found that ninety-five percent of Results Azusa Light&Water customers are satisfied with the service and that the most important attribute in providing excellent customer service is treating all customers as if they are valued. She detailed the rest of the results of the survey and presented an action plan that would improve Results service and communications to customers. She then presented a proposal to provide unique, Continued targeted customer service to Azusa Light &Water field employees, and recommended sole sourcing training to MEASURE-X. Discussion was held between Staff and Councilmembers regarding the proposal. 006 12/23/02 PAGE THREE Moved by Chairperson Chagnon, seconded by Councilmember Rocha and unanimously carried to Agmt w/ waive formal bidding requirements for customer service training for field employees; and MEASURE X authorize the City Manager to execute the agreement with MEASURE-X for a unique, customized Customer sys customer service training not offered by other training companies. Training F Director of Utilities Hsu addressed item regarding the Amended and Restated Firm Transmission Dir of Util Service Agreements between Edison and Azusa. He stated that there Is a need for restated Amended agreements to be adopted and that although the transmission rate revision is expected to Restated increase the costs for Edison's services by a minimum of $250,000, per year, the City is joining Firm Trans the CAISO as a Participating Transmission Owner as of January 1, 2003 and will received Service reimbursements for the same transmission services. The cost increase from Edison will be offset Agmts by the reimbursements from the CAISO, resulting in no net increase. Moved by Councilmember Hardison,seconded by Chairperson Chagnon and unanimously carried Agmts w/ to approve the six amended and restated firm transmission service agreements between Edison Edison and Azusa, and authorize the Mayor to sign the agreements. Approved Director of Utilities Hsu addressed item regarding proposed membership in Financing Authority Dir of Util for Resource Efficiency of California (FARECal), and resolution declaring City's intention to be FARECal reimbursed for certain expenditures out of the proceeds from tax-exempt financing, stating that he would like to finance Light and Water projects, such as: construction of a second electrical substation, and construction of a new electrical operations office, instead of using reserves as there are limited reserves at this time. He detailed the process for the issuance of tax exempt bond financing. He stated that the first proposed resolution authorizes execution of application for members in FARECal and the second declares the City's intention to be reimbursed for certain expenditures from the proceeds of proposed tax exempt financing. Councilmember Rocha offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIUUTILITY BOARD OF THE CITY OF AZUSA AUTHORIZING Res. 02-0144 EXECUTION OF APPLICATION FOR MEMBERSHIP IN FINANCING AUTHORITY FOR RESOURCE Appl FARECal EFFICIENCY OF CALIFORNIA AND COMMITMENT TO ABIDE BY THE RPOVISIONS OF THE JOINT POWERS AGREEMENT. Moved by Councilmember Rocha,seconded by Counciimember Hardison to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON,STANFORD, ROCHA,CHAGNON,MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Councilmember Rocha offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA DECLARING ITS INTENTION TO Res. 02-C145 REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF A PROPOSED TAX-EXEMPT Tax Exempt FINANCING, AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS Financing SECTION 1.150-2. Moved by Councilmember Rocha, seconded by Councilmember Hardison to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON,STANFORD, ROCHA, CHAGNON,MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE 007 12/23/02 PAGE FOUR v Lengthy discussion was held regarding the proposed contract to design, engineer, procure, and Dis re: construct (EPC) the Azusa Light & Water 2nd Electric Substation to be located at 1160 W. EPC Gladstone Street. Director of Utilities Hsu and City Attorney Ferre detailed the complex nature of Electric the project and the bidding process. Six responses were received on the RFP and a consultant Substation was hired to help evaluate/analyze the bids and make a recommendation for contracting the project. Chairperson Chagnon requested that technical performance guidelines, such as timelines, Chagnon reimbursements, etc., be included in the contract and she expressed the need to adhere to City Comments guidelines for change order procedures and approvals required. Electrical Engineer Langit responded stating that terms and conditions for addressing the F. Langit requirements on the contracts will be part of the final agreement. He stated that other parties Comments are a part of the project and also have requirements that have to be met, further commenting that there will be good management cost control of all expenses, further, provisions for change orders will have to be pre-approved by written authorization and be stipulated in the conditions of approval. Discussion Discussion was held regarding past projects, and policies that have been created. Terms of payment, were discussed as well as performance schedule. Director of Utilities Hsu stated that payment will be made based on what is complete, and they will go by guidelines of the purchasing policy. Further there will be a ten percent retention withheld until the project is complete. Additional discussion was held regarding the creation of a sub-group of the Board to possibly oversee the project before final approvals are made. Mr. Hsu responded stating that in- house staff will be overseeing the project. Discussion regarding change orders process, timeline and add-ons to the_project. City Manager Cole spoke of alternate ways of addressing these concerns, stating that due to the fact that the project is of great magnitude,the Board/staff maybe want to pay for construction management to supplement in-house staff. He noted other concerns regarding the creation of a sub-group of the Board. Councilmember Stanford suggested that the subject be discussed at the next Utility Board meeting. EPC Agmt Moved by Chairperson Chagnon, seconded by Mayor Madrid and unanimously carried to award Black& EPC Agreement to Black &Veatch Construction Inc., in the amount not to exceed $3,086,000 Veatch (Three Million Eighty Six Thousand Dollars) for the design,engineering,procurement,construction Approved and commissioning of Azusa Light and Water's 2' electric substation at 1160 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.) B. Tang Assistant Director of Resource Management Tang addressed the Amendment to the Risk Policy Amend Risk and Authority Conveyance for Power Transactions stating that in July, 2002, Council approved an Policy Interim 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. Due to the continued need to define specific authorities for the power resource personnel engaged in procurement functions, staff recommends that following permanent changes to the Risk Management Policy: Amend Risk 1. Change the procurement authority of Power Resource Coordinator to the same level as Policy Auth Assistant Director of Resource Management, I.e., procurement authority up to three months. 2. Continued Revise the procurement authority for Power Resource Scheduler to transactions up to one month. Risk Policy . Moved by Councilmember Hardison, seconded by Chairperson Chagnon and unanimously carried Amendment to approve the proposed amendment outlined above to the Risk Policy and convey proposed approved authority to Power Resource (Division) personnel to conduct short-term power transactions. p j 000 C 12/23/02 PAGE FIVE Staff Reports/Communications Staff Rpts Director of Utilities Hsu advised that the workplan update will be presented in January, 2003, Dir of Util followed by updates in April, July and September. Comments Assistant Director of Resource Management Tang presented the Power Resources Division B. Tang Monthly Report as an information item and provided an update on the Options Agreement with Update regard to the San Juan with the County of Los Alamos. The discussions with Los Alamos County Options are on hold pending review of SCAPPA bond counsel on tax issues. Agreement Directors' Comments Dir Com City Manager Cole advised of the stability of the Azusa Light and Water Department as a public Dir of Util entity. He praised the management, leadership and noted that reserves in the water fund have &City Mgr been great. Director of Utilities Hsu concurred with City Manager's comments and thanked the Comments Utility Board members for their leadership. Discussion was held regarding upcoming SCAPPA conferences and events for the year 2003,and Change of it was noted that CMUA Legislative Briefing on the same date as the next Utility Board meeting. It Next Utility was consensus of the Board members to change the next Utility Board meeting to Tuesday, Brd Meeting January 28, 2003, in order that Director of Utilities Hsu be present. City Manager Cole announced that Monrovia Nursery should be a topic of discussion at the City Mgr Special meeting to be held jointly with the Azusa Unified School District on January 13'or 14th• Comments tentatively scheduled, depending on the AVSD availability. It was consensus of Counclimembers to recess to Closed Session to discuss the following: Closed Sess CONFERENCE WITH LEGAL COUNSEL - ANTICIPATE LITIGATION (Gov. Code Section Anticipated 54956.9(c 11. One Case. Litigation REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8). Real Prop Property: 1020-W. 10' Street, Azusa, CA 91702. Negotiations Negotiators: Joe Hsu, Director of Utilities, Henry Domolina, Kress Pandzic Under Negotiations: Price and terms of payment The City Council recessed at 8:00 p.m. The City Council reconvened at 8:39 p.m. Recess Reconvened City Attorney Martinez advised that there was no reportable action taken in Closed Session. No Rpts It was consensus of Councilmembers to adjourn. Adjourn TIME OF ADJOURNMENT: 8:40 P.M. SECRETARY NEXT RESOLUTION NO. 03-CI. 009 � 1 AZUSA l RII, a wur• CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES4 ,1 DATE: JANUARY 29, 2003 �� WW SUBJECT: AWARD BID &AUTHORIZE PURCHASE OF 2003 HYDRO EXCAVATION (VACUUM) TRUCK RECOMMENDATION It is recommended that the Utility Board/City Council accept the bids as received and award the purchase of a 2003 Hydro Excavation (Vacuum) Truck to the lowest bidder, Haaker Equipment Company in the amount of$190,970.32. BACKGROUND At its regular meeting on December 23, 2002, the Utility Board/City Council approved the specifications and authorized formal bidding for the above subject vehicle. As directed, the City Clerk published a Notice Inviting Bids on January 9, 2003. Bid packages were also mailed directly to local truck dealers. The following bids were received: Peck Road Truck Center $193,455.74 Haaker Equipment Company $190,970.32 FISCAL IMPACT Fiscal Impact will be $190,693.34. Sufficient funds are avallable in the Water Division's Vehicle Replacement Budget. Prepared by: Phyllis Bradley Administrative Services Supervisor 010 RESOLUTION NO. A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, AMENDING THE SCHEDULE OF CHARGES AND RULES AND REGULATIONS GOVERNING THE ELECTRIC AND WATER SERVICE SUPPLIED BY AZUSA LIGHT & WATER. WHEREAS, the Utility Board/City Council is empowered to impose reasonable collection policies for a variety of utility services; and WHEREAS, the Utility Board/City Council has determined that the users of these services should not financially overburden other users of these services; and WHEREAS, Azusa Light &Water proposes to implement the following additions and changes to the current charges and Rules and Regulations: 1. Electric Rule No. 8 to limit the credit card payment option to $500.00 or less. 2. Water Rule No. 7, to offer the credit card payment option to $500.00 or less. NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES FIND AND DECLARE THAT: SECTION 1. Adoption of Amendments. The City Council hereby adopts the amendment to the Schedule of Charges and Rules and Regulations set forth in Exhibit "A" which is attached to this Resolution and is incorporated herein as set forth in full. SECTION 2. Effective Date. The amendments to the Charges and Rules and Regulations shall become effective on February 1, 2003. PASSED, APPROVED AND ADOPTED this 29th day of January 2003. Cristina C. Madrid Mayor 013 ATTEST: Vera Mendoza City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that the foregoing Resolution No. was duly introduced and adopted at a regular meeting of the Azusa Utility Board/City Council on the 29th day of January 2003, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Vera Mendoza City Clerk 014 AZUSA IIGNi t 'NATIR ' CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD 84�� AND AZUSA CIN COUNCILZ 01 FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES CP ` \ DATE: JANUARY 29, 2003 SUBJECT: RESOLUTION AND APPROVAL TO MODIFY COLLECTION PRACTICES 1� RECOMMENDATION It is recommended that the Azusa Utili Board/Ci Council approve: 1. Changing the Electillic and Water Rul and Regulations to limit accepting credit card payments to $ or le 2. Joining the California Utility Exchange (CUE) for a one-year trial period. 3. Initiating a request for proposals for collection agency service. BACKGROUND Azusa Light &Water adopted accepting credit cards for utility bill payments in April 2000. The bank charges us 2% of the credit card charge. In the beginning this was a small amount but now that many customers use this—form of psant over 4t 1O Mn per ,y ypjcaljy 4a h. cinPcc I�tomers take advantage of this payment optiori which costs Azusa Light 8 Water mast of the $10 000. Of those, only 14 pay bills hlgber t�0. An average o(-_3115,zes dential customers oa by credjt cardwith only 2 of those paying bills for more than $500 and represents 92% of the credit card charges. Our remaining customers are carrying the burden of the 2% convenience charge. To reduce the size of the burden, Azusa Light &Water recommends offering the credit card payment option only for bills $500.00 or less. Azusa Light &Water has used Equifax to check credit rating of new utility account applicants since January 2001. if customers pass a certain minimum score their prepayment Is waived. Our unpaid Trite-offs have been steady risingover the last three years from $64,000 per year to-, 75,000 in the first 6 months of 2002-03. This is particularly high due to write—uffs- of335;U0&of old bankrupt closed accounts that occurred earlier this fiscal year. Equifax has 011 another product that would be beneficial to us. It is the National Consumer Telecom & Utilities Exchange, Inc., or CUE. It is a member-owned database housed and managed by Equifax. Membership is available to any of the nation's telecommunication and utility companies. How it works is members transmit to Equifax their new applicant information to be added to the central database. Other utilities that had a customer leave without paying their bill will find a match if that customer moved to our city. The same works for us. We would also report our unpaid accounts to the database, hoping for a match with the utility jurisdiction where the customer moved. Other California utility members include: City of Long Beach, Sacramento Municipal Utility District, Southern California Edison, City of Glendale, PG&E, Los Angeles Department of Water &Power, City of Anaheim, and Southern California Gas Company. It is very likely that if a customer moves from Azusa they would be moving to one of these locations and we could get their new address for skip-tracing. Based on experience, Equifax projects we would get a 35% match rate and could probably collect 20-30% of these. We keep 100% on the accounts we collect in-house; if they are collected by the collection agency we receive only 60°%o. We would be able to send the closed accounts we are unable to collect to a collection agency with good addresses, increasing their ability to collect for us. Lastly, Azusa Light &Water has been using Tal Lewis, Inc. collection agency since October 24, 1983. The maximum contract length allowed by the City's Purchasing Policies and Procedures is five years. We are requesting approval to rebid the collection agency. FISCAL IMPACT There is a $450 monthly minimum billing for batch data submissions to the Equifax CUE. We can expect to pay between $450 -$500 per month. In addition, there is a $750 set-up charge. Prepared by: Karen Vanca, Assistant Director Customer Care &Solutions Attachments: E 12 Reso re electric& CUE Exchange water rule changes.0 Agreement 1-01DOC _ i 012 RESOLUTION NO. A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, AMENDING THE SCHEDULE OF CHARGES AND RULES AND REGULATIONS GOVERNING THE ELECTRIC AND WATER SERVICE SUPPLIED BY AZUSA LIGHT & WATER. WHEREAS, the Utility Board/City Council is empowered to impose reasonable collection policies for a variety of utility services; and WHEREAS, the Utility Board/City Council has determined that the users of these services should not financially overburden other users of these services; and WHEREAS, Azusa Light &Water proposes to implement the following additions and changes to the current charges and Rules and Regulations: 1. Electric Rule No. 8 to limit the credit card payment option to $500.00 or less. 2. Water Rule No. 7, to offer the credit card payment option to $500.00 or less. NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES FIND AND DECLARE THAT: SECTION 1. Adoption of Amendments. The City Council hereby adopts the amendment to the Schedule of Charges and Rules and Regulations set forth in Exhibit "A" which is attached to this Resolution and is incorporated herein as set forth in full. SECTION 2. Effective Date. The amendments to the Charges and Rules and Regulations shall become effective on February 1, 2003. PASSED, APPROVED AND ADOPTED this 29th day of January 2003. Cristina C. Madrid Mayor 013 ATTEST: Vera Mendoza City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that the foregoing Resolution No. was duly introduced and adopted at a regular meeting of the Azusa Utility Board/City Council on the 29th day of January 2003, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Vera Mendoza City Clerk 014 EXHIBIT "A" Proposed Changes to Rules and Regulations ELECTRIC RULE CHANGES Changes to take effect February 1, 2003, text to be deleted is highlighted in strikeeut. Changes to take effect February 1, 2003, text to be added is highlighted in underline. Text that is not highlighted is current and is being provided for context and reference. Amendment to Rule No. 8 Rendering and Payment of Bills F. CREDIT CARD CHARGE: The credit card payment option is limited to $500.00 or less. If the customer's credit or debit card payment is rejected or payment returned to Azusa Light &Water, there will be a $20.00 return fee added to the customer's account in addition to the original payment. A notice will be mailed to the customer, notifying them to pay the total amount due in cash, cashier's check, or money order by the due date on the notice. If the charges are not paid by the due date, the utility service will be discontinued. In addition, credit card or debit card payments will not be accepted on the customer's account for a period of six months. A second returned credit or debit card payment will result In the account being permanently prohibited from accepting further debit or credit card transactions. When the credit card account number is given over the telephone, it Is required to send by facsimile, proof of identification to prevent credit card fraud. WATER RULE CHANGES Amendment to Rule No 7 Rendering and Payment of Bills > E. CREDIT CARD CHARGE: The credit card payment option is limited to $500.00 or,less. If the customer's credit or debit card payment is rejected or payment returned to Azusa Light&Water, there will be a$20.00 return fee added to the customer's account in addition to the original payment. A notice will be mailed to the customer, notifying them to pay the total amount due in cash, cashier's check, or money order by the due date on the notice. If the charges are not paid by the due date, the utility service will be discontinued. In addition, credit card or debit card payments will not be accepted on the customer's account for a period of six months. A second returned credit or debit card payment will result in the account being permanently prohibited from accepting further debit or credit card transactions. When the credit card account number is given over the telephone, it is required to send by facsimile, proof of identification to prevent credit card fraud. 015 EQUIFAX TELECOMMUNICATIONS and UTILITIES SERVICES AGREEMENT FOR SERVICE Customer Information EXCHANGE Systems Equifax Telecommunications and Utilities Services (ETUS), a division of Equifax Information Services LLC, has available to subscribing utilities and telephone companies throughout North America, an automated information service known as EXCHANGE, which files, stores and retrieves information on new customer accounts and delinquent accounts for the purpose of identifying potential financial risks and locating consumers who have delinquent accounts. 1. The undersigned Subscriber, desiring to use EXCHANGE services at the price set forth in Exhibit A, agrees to furnish, at least monthly, in an ETUS specified format, information which, at a minimum, includes: current listings of customer service applications, unpaid closed accounts of $25.00 or more, and updates to such unpaid closed accounts reflecting their current status. The current listings shall cover the period from the cut-off date of the previously submitted magnetic tape through the present cut-off date. 2. All information filed, stored and processed through the EXCHANGE System is treated confidentially and is provided unique identification code, which identifies Subscriber and prevents unauthorized access and retrieval. Subscriber's information is fully separable from other subscriber information and is considered proprietary in nature. 3. Subscriber agrees that EXCHANGE match information will be requested only for the Subscriber's exclusive use and all EXCHANGE match information received will be held in strict confidence, except to the extent that disclosure to others is required by law. In compliance with applicable credit reporting acts, a record of all match activity on Subscriber accounts is kept by ETUS for six months after the match occurs. 4. Recognizing the information is secured by and through fallible human sources and that for the fee charged, ETUS cannot be an insurer of the accuracy of the information, Subscriber understands and agrees that the accuracy of any information furnished is not guaranteed and releases ETUS, its agents, employees, independent contractors, subscribers and sources from liability for negligence in connection with the preparation of reports and from any loss or expense suffered by Subscriber resulting directly or indirectly from such report information. This release from liability shall not apply to any liability, cost or expense suffered by Subscriber resulting directly from any disclosure or dissemination of information which is in violation of the obligations of ETUS as provided in Section 2 of this Agreement. ETUS likewise releases Subscriber, its agents, employees, and independent contractors from liability for negligence in connection with its submitting information to ETUS for EXCHANGE and from any loss or expense suffered by ETUS resulting directly or indirectly from such information. 5. Current rates and conditions for EXCHANGE service are set forth in Exhibit A, attached hereto and incorporated herein. Included in these charges are initial set-up; operational availability for batch processing of Subscriber information; documentation on the use of EXCHANGE; and initial training for Subscriber personnel in the effective and knowledgeable use of the EXCHANGE System. In the event ETUS is requested to provide initial or additional training in City of Azusa Exchange Agreement(final) — LRD 1-17-03 016 r excess of the two day training period, such training will be charged in accordance with ETUS' fee schedule as of the requested date. Subscriber agrees to pay invoiced amounts within 30 days after receipt of invoice. 6. This Agreement will be for an initial term of 1 year at the rate indicated in Exhibit A. On or before the 1 year anniversary, Subscriber may select from an additional 1, 2, or 3 year renewal term. Either parry may terminate this Agreement, and the applicable term, for any reason or no reason, upon at least (90) days prior written notice to the other parry. The obligations and agreements of set forth in the third and fourth paragraphs above will remain in force upon the termination of this Agreement. In the event that this Agreement is terminated, all Subscriber information will be deleted from EXCHANGE within thirty (30) working days of the effective date of termination. Notices shall be sent by first class mail, postpaid to the Subscriber at 213 E. Foothill Blvd., Azusa, CA 91702 and to Equifax Information Services LLC at 1550 Peachtree Street NW, Mail Drop 11A, Atlanta, Georgia 30309, Attention: EXCHANGE Administration. 7. Subscriber understands the EXCHANGE reports are consumer reports, as defined by the Fair Credit Reporting Act, and certifies that such reports will be requested only when intended to be used as a factor in establishing a consumer's eligibility for new or continued credit, collection of an account, or otherwise in connection with a legitimate business transaction involving the consumer and such reports will be used for no other purpose. 8. We understand and agree that this instrument constitutes all agreements and conditions of the parties relating to the subject matter hereof and supersedes all prior agreements or representations, oral or written. No changes in this Agreement may be made except by consent in writing of an officer of Equifax Information Services LLC and an authorized representative of Subscriber. 9. City of Azusa will have the opportunity to match with all future and existing members of the California Utility Exchange. 10. Subscriber hereby engages ETUS as an independent contractor to furnish all materials and to perform all work according to the terms and conditions of this Agreement. 11. Neither parry may assign its rights or obligations under this Agreement without the written consent of the other party. 12. This Agreement shall be governed by the laws of the state of California. SUBSCRIBER: CITY OF AZUSA EQUIFAX TELECOMMUNICATIONS AND UTmrriES SERVICES, Address 213 E. Foothill Blvd. A division of Equifax Information Services LLC: City, State Azusa, CA 91702 By: By: Title: Tide: Date: Date: City of Azusa Exchange Agreement(final) —LRD 1-17-03 017 EXHIBIT A CURRENT RATE SCHEDULE On a monthly basis, subscriber shall be charged a Subscription Fee of $450.00 which will be billed in arrears and a one-time set-up fee of$750.00. For the Subscription Fee set forth above, Equifax will provide: 1) Initial set-up and standard operational availability for batch processing of subscriber information; 2) Full documentation on the use of the EXCHANGE system; 3) Delivery of EXCHANGE system reports to central customer site electronically or US Mail; (Priority Mail would be at customer' s expense.) 4) Training of two days for Subscriber personnel in the effective and knowledgeable use of the EXCHANGE system. 5) Quarterly review with Subscriber management as to system effectiveness; and 6) Standard system User and Management reports. 7) Data enrichment for incorrect or invalid Social Security Numbers Subscriber is encouraged to provide an initial load of up to six (6) months of CSA records and twenty - four (24) months of UCA records and (6) months of CSA. City of Azusa Exchange Agreement(final) - LRD 1-17-03 ('� p 018 1 AZUSA LIGHT L WATlt CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES,,--\L- DATE: TILITIES,,--\yDATE: JANUARY 29, 2003 v C SUBJECT: " AUTHORIZATION TO ADVERTISE PROJECT W-179, FOOTHILL AND BARRANCA WATER MAIN PROJECT, AND TO RECEIVE BIDS RECOMMENDATION It is recommended that the Utility Board/City Council authorize staff to advertise above referenced water main project, and to receive bids. BACKGROUND The Water Division has designed a water main called the Foothill and Barranca Avenue Water Main to connect the City water system from Foothill and Citrus to Barranca and Alosta. This pipeline is recommended by the Year 2000 Water System Master Plan Update, and will replace older, smaller waterline in Foothill Boulevard. The pipeline will be approximately 1 mile long. FISCAL IMPACT Engineer's Estimate for the project is approximately $645,000, and it is included in the fiscal year 2003 budget. Prepared by: Chet Anderson, Assistant Director of Water Operations 051 a - a ALU�A L cxr a ww... CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: ANN GRAF GAYNOR, INFORMATION SYSTEMS MANAGER KEVIN MORNINGSTAR, INFORMATION SYSTEMS MANAGER LYSELL WOFFORD, INFORMATION SYSTEMS MANAGER VIA: RICK COLE, CITY MANAGER JOSEPH F. HSU, DIRECTOR OF UTILITIES` �3��" DATE: JANUARY 29, 2003 SUBJECT: APPROVE PURCHASE OF AVAYA G3R PHONE SYSTEM UPGRADES INCLUDING MULTIVANTAGE OPERATING SYSTEM, VOID/LAN CONNECTIVITY, BCMS CALL CENTER REPORTING, AND "VAL" ANNOUNCEMENT BOARD FROM DAYCOM SYSTEMS, AN AUTHORIZED CALIFORNIA MULTIPLE AWARD SCHEDULE VENDOR. RECOMMENDATION It is recommended that the Azusa Utility Board/City Council: 1. Approve the purchase of Avaya phone equipment as described in Appendix A of the attached proposal from Daycom Systems, Inc. 2. Award contract to Daycom Systems, Inc under the State of California, Multiple Award Schedule per Contract Number: 3-01-70-1488A. 3. Authorize the City's Purchasing Officer to sign necessary documents and execute a Purchase Order in an amount not to exceed $82,500.00 to Daycom Systems, Inc. 4. Accept Daycom Proposal Appendix B modification to standard Azusa Purchasing Contract relating to Section 3.4 ("Period of Performance") waiving liquidated damages. 0� 5. Agree to Daycom Proposal Appendix B Payment Terms defined as "50%at the time of delivery and the remainder upon completion of the project". i BACKGROUND The City of Azusa's phone switch is an Avaya G3r (formerly purchased from AT&T BCS and Lucent Technologies). This phone switch was originally installed in May 1995 and has received only one significant upgrade in 1997 to support the City's INET fiber to Memorial Park and Transportation offices. Phone switching equipment such as Azusa's is a significant long term investment, since systems typically have a useful service life of between 10 and 20 years. As Azusa's equipment is reaching the midpoint of its service life, the City's Information Technology management staff has spent the past year planning for a significant series of upgrades which are intended to not only extend the service life of the equipment, but also significantly expand the system's functionality. In configuring this upgrade, staff has focused on technologies that meet three project goals, they include: 1) Regular and preventative maintenance, 2) Investment protection, and 3) Expanded internal and external communication capabilities. The following outlines how each of the proposed items meets these goals in order to improve the City's telecommunications capabilities. Resular/Preventative Maintenance. As noted in the paragraph above, the last operating system upgrade was performed in 1997. Currently the operating system in use at Azusa (116) is several revisions behind the current standard (R12). This impacts the City's ability to maintain the equipment and restricts our ability to add new features for all departments. With the new OS, staff will be able to offer improved support to the City's staff through features such as dynamic call coverage that will forward calls to the employee's Nextel phone, effectively making their office phone and Nextel one in the same. This upgrade also addresses key maintenance issues related to equipment obsolescence. Both the main switch and the Call Management System in use at Azusa Light &Water have technology in key areas which is no longer sold or maintained by Avaya. The new operating system will enable the retirement of this obsolete equipment, as well as bring the existing equipment up to current industry standards for functionality. Investment Protection. The City's phone system was a major investment back in 1995. When it was first installed it was a major leap forward for the City's way of doing business, and with a few minor additions and only one upgrade since, the system has continued to meet the City's needs. With the proposed upgrades the system will be able to continue to meet these, and new needs, for hopefully another 8 years. By adding new technologies such as VOIP capability, LAN connectivity, and new voice announcement over LAN board, we are able to effectively recreate the switch into something new without replacing it. Investment protection is achieved because the existing hardware will be utilized side by side with new technology, allowing the City to continue to benefit from the original investment made in 1995. Enhanced.Capabilities. In 1995 the G3r was a huge improvement over the City's prior phone system. Automated attendants, voice mail, and call routing were all significantly Improved. Over the past 8 years expectations and needs have changed. The proposed upgrades are targeted at addressing our current deficiencies without the unnecessary expense of replacing the City's existing switch. The four key capabilities that will be enhanced include: 1) Announcements. Automated attendants are a key to routing calls for the City. Currently our ability to expand and revise call handling is restricted by a lack of announcement board r space. The new announcement boards will offer 15 times the amount of recording time currently available as well as improving the quality and recording means. 2) New Extensions. Currently digital phone service Is only available where the city has run the copper cabling to an f Expansion Port Network (located at City Hall, Azusa Light &Water, Police, Memorial Park and I ` 020 Transportation). These connections require physical connections to port cards. To add capacity means having not only the wiring available;•but also a port on the switch. With VOII future phones will require no cabling as the signal will run on the City's data network. Outlying areas served by the network, but not by the switch, (Water Treatment Plant and Gladstone Water Yard) will finally able to have full phone services. The VOID technology will also support future phone requirements of Azusa Light R Water's proposed electric substation and new electric yard. Up to 12,000 telephones can be added without the City needing to purchase another digital port. 3) Call Coverage. Call coverage and routing are key issues for maintaining good customer and constituent services. With the new operating system the switch's vectoring capability will be almost doubled. This will allow the IT staff to offer improved call routing and coverage. 4) Improved Support. The new upgrades will also make maintaining the switch easier as obsolete diai up support modems will be replaced with software accessible from anywhere on Azusa's network. Additionally new functionality such as a Holiday Table will make support significantly more efficient. FISCAL IMPACT The funds for the switch upgrade were budgeted in the current fiscal year capital budgets of both the General Fund and Azusa Light &Water. Upgrade expenses related to the operating system, VOID, and announcement board are allocated such that General Fund will pay 60% and Azusa Light &Water will pay 40%. The BCMS upgrade was allocated 100°%o to Azusa Light &Water as its functions are exclusively used by the Customer Service Call Center. The General Fund's share of the upgrade is $37,500 and the remaining $45,000 will be paid out of Azusa Light &Water funds. Prepared by: Kevin Morningstar, Information Systems Manager (Azusa Light &Water) Final Daycom Proposal to City of A2 021 <� ih � � S • � � � 1 � �'y` � -?m.,r'r�^ T )�sn % r� J9gM a,.Mj9�aG E '� ^`: X` �; E f s . � � 7hi �'i. S � a _ Y --^- 9.� Vii. a 3 s � 4,yii )r � ._ .I r L} �� �c , ..F c �t8 ��>.e � f� N 77 �'>r r 4.,i �: �• rtx� 7� a �. x _,� �� �� �_ � >�f �.. amu" =-�-s:�`:'tss��:..i..�.�.�,x-:.�."-..ys: =--^�_��...- v.;.na3 - . - • . • ' • - - -• • - - -• • • - - - - - - • • - - - �• — � � -�- iLVM January 15, 2003 Mr. Rick Cole, City Manager City of Azusa 213 East Foothill Blvd Azusa, California 91702 Mr. Cole: Daycom Systems, Inc. and Avaya Communications appreciate the opportunity to design a communication solution for the City of Azusa and look forward to partnering on this project. Daycom Systems, Inc. is one of Avoya's largest business partners in the United States. We specialize in bringing the resources of Avaya to our clientele and providing you with a solution that is specifically designed to meet your unique needs. We offer a full range of services to help customers nationwide plan, design, install, and maintain voice and data networking solutions. Daycom Systems helps you optimize your systems by delivering custom, affordable, single point of contact solutions supported by industry-leading services, top branded products, and industry specific technical expertise. Again,we appreciate the opportunity to present this solution to the City of Azusa. Should you have any questions or need additional information, feel free to call us at 858-200-3150. We look forward to working with you. Best Regards, Scott Beckner Account Executive (858) 200-3150 AVAYA 6759 Mese Rld9e Road,Suite 150•San 01090,C ftmld 92121•Tel.800.824.1661•Fox 858-2W-3241•w ..DWICMSYstem -wm � J• 023 LiS1W � ® AMC Total Communications Solutions. Total Customer Service. TABLE OF CONTENTS TABLE OF CONTENTS ......................:...................................... 2 EXECUTIVE SUMMARY ........................................................... 3 PROJECT SOLUTION ............................................................... 4 PROJECT TIMELINE ................................................................. 7 APPENDIX A - TOTAL INVESTMENT...................................... 8 APPENDIX B - AZUSA PURCHASING CONTRACT ............. 11 APPENDIX C - CMAS CONTRACT ........................................ 18 i 024 Total Communications solutions. Total Customer service. EXECUTIVE SUMMARY In 1995, the City of Azusa invested in a telephone switch (G3r) from AT&T BCS. At the time it was a state of the art telecommunications system that far exceeded the City's existing capabilities at the time. The City, chose wisely, and invested in a solution that would not only address the deficiencies in the prior equipment, but would also have a long service life and be expandable to grow with new emerging technologies. In 1997, this choice demonstrated its expandability with the upgrade of new fiber technology from Lucent Technologies, which allowed the City to save money by implementing fiber connections to replace leased lines. These upgrades, and the operating system installed at the time have now been in service for 5 years. The City's IT staff has approached Daycom with the challenge of upgrading the existing phone switch so that current deficiencies can be address as well as positioning the City of Azusa to take advantage of new features and technology. We believe that the upgrades outline below will position the current communications system for service well beyond its original 10 year service life. Some of the keys elements of upgrading the current system are as follows: Upgrading the switch operating system and equipment to support Multivantage. By upgrading the operating system to Multivantage, this not only brings the system up to date with Avaya's current standard, it will also replace obsolete equipment, enabling new technologies, and improving ease of administration for the City's staff. Add LAN connectivity and Voice Over Internet Protocol (VOIP). Voice and data now coexist on the same network. No longer will the City need to invest in circuit cards and costly cabling. VOIP will save the City money over the long run through lower costs for additions and support. Better quality recordings. The City is currently out of the limited amount of announcement time available on the existing equipment. The proposed announcement boards-that are part of this proposal will not only increase the amount of announcement time (capacity) by a factor of 15, it will enable a demonstrable improvement in quality and capability. Call Center Reporting. The current Call Management System, originally purchased from AT&T in 1995 is now obsolete and ineligible for support from Avaya. As part of the upgrade the City will be purchasing Avaya's BCMSVu, which will allow the City to view and print similar Call Center data, but without the hassle of maintaining the obsolete existing equipment. In summary, the City of Azusa's initial major investment was a very well thought out one in regards to vision and future technology. The proposed upgrade is key to extending the vision beyond the next 10 years. 025 'LMAMA= Total Communications Solutions. Total Customer Service. PROJECT SOLUTION Project Overview Provided in the following pages is a summary of services that Avaya Communications will be providing during the implementation of the project. Please note: Daycom Systems will be partnered with Avaya to ensure a proper implementation yet Avaya will be the installing entity. Contact Information Description . .- Phone Customer City of Azusa www.ComoanvName.cem Primary Contact Rick Cole Site Contact Kevin Morningstar 626.812.5288 Customer Consultant N/A . Project Team Daycom Systems,Inc. 800.824.1661 www.Davcom.com Direct of Technical Services Rick Dolfo 858.200.3103 RickDotfo(aDavcemSvstems.com Account Executive Scoff Beckner 858.200.3150 scollboDavcom.com Professional Services Tom Fitzpatrick 858.200.3270 TomFAI)avoomSvstems.com Project Manager Fred Swartz 858.200.3242 FredSaDavcomSvstems.com Ray Salazar 858.200.3246 RaySADavcomSvstems.com Lead Technician TBD Help Desk 877,532.9266 HeloDeskADavcomSvstems.com Project Resources Service Provider Cable Vendor Avaya Team Renee'Rivera 626.304.5213 mrivers(Elavava.com Avaya Business Partner Daycom Systems Inc. 858.200.3100 - 026 I A ��lM Total Communications Solutions. Total Customer Service. The Avaya System upgrade will provide solutions in four different areas: 1) OPERATING SYSTEMS UPGRADE The current operating system (OS) for the City of Azusa telephone system was installed and manufactured over 5 years ago. It is a working but antiquated technology. Avaya, and all telecommunications companies at that time, had proprietary operating systems. This meant that the telephone system required a separated network from the data network. Administration costs, maintenance, and software costs were higher due to the proprietary network. The current OS is changed to a new architecture where the system operates on an industry standard OS is replaced by an industry standard, high reliability OS called Linux. Over time this will drive down administrative (only one network to administrate), maintenance, and software solutions costs as the network will no longer be proprietary and be part of the overall data network. The OS upgrade also make possible the technology for all of the solutions below. 2) VOICE OVER INTERNET PROTOCOL (VOIP) Traditional telephone systems used proprietary network technology to connect and switch telephone calls within an organization. The long emerging standard is a technology that uses Internet Protocols to send voice calls across the data network as packets and is called Voice over Internet Protocol. The City of Azusa will utilize this technology to improve communications to City locations, which now must have extensive proprietary telephone equipment and special phone lines in order for these sites to be on the current telephone system. Since these sites are already connect to the existing data network, voice calls can now be sent over the data network and Internet Protocol telephones will replace that proprietary existing telephones. Avaya has assessed the City network and conduced a trial of this technology and the voice quality and reliability were tested and were equal in reliability and voice quality to the existing solution. This technology will both improve communications to these sites, save on cost of equipment, and on telephone system maintenance costs (or allow the telephone equipment to be used elsewhere). d 2'7 @ VSTVAM .� Total Communications Solutions. Total Customer Service. 3) CALL CENTER REPORTING (BCMS) Customer call data to the City are currently collected by the telephone system and then sent to an Avaya call management system (CMS), which formats and gives a number of standard and custom reports for use by management. This software and hardware platform is over eight years old and is no longer supported by Avaya. The Avaya system upgrade will replace a non-supported reporting system with the most current Avaya call management system. The upgrade will give City Managers 11 standard reports on telephone calls to the City call centers. In addition, five supervisors will have real-time information on their desktop computers on call center activity. This gives the supervisors the ability to make decisions based upon current activity in the call center and to be aware of conditions such as long hold times that require action. The new call management system on co-resident with the telephone system. 4) ANNOUNCEMENT TO CUSTOMERS (VOICE ANNOUNCEMENT OVER LAN) During a telephone call to the City call center, callers will hear a number of announcements. These announcements are subject to change over time. Additional menu choices and information are recorded and stored on the voice messaging system due to lack of storage in the current system. The system upgrade will enable the City to move these announcements from the voice messaging system to the new storage board, which plays the messages over the data network. The current limited capacity for storage of announcements will be increased to a sufficient long-term amount of storage. The system upgrade will give 60 minutes of high voice quality announcement storage. I 028 Total Communications Solutions. Total Customer Service. PROJECT TIMELINE PHASE START DATE END DATE OVERVIEW 1 01/26/03 02/01/03 Submission to Azusa Utility Board and City Council/A royal 2 02/02/03 02/08/03 Legal/Purchasing Legal/Purchasingagreements 3 02/09/03 02/17/03 Equipment Ordered/Ava a Project Manager project kickoff 4 03/09/03 03/15/03 Equipment shi ed.to Da com. Tested and inventoried 5 03/16/03 03/22/03 E ui ment shi ed to customer site. 6 03/23/03 03/29/03 Installation of s stem u radeftrainin 029 DAYM ® AI SVNWAM.A= Total Communications Solutions. Total Customer Service. APPENDIX A - TOTAL INVESTMENT Customer Information Daycom Product and Services Overview Name: Rick Cole -Avaya Diamond BusinessPartner -Dedicated Project Managers Company: City of Azusa -Avaya Gold BusinessPartner -24-hour Help Desk Address: 213 East Foothill -Monitoring and Maintenance -Remote Diagnostics Azusa,California 91702 -Convergence Network Consulting -Avaya certified technicians Phone: (626)812-5288 -Conferencing equipment for video and voice -On-staff Call Center experts Fax: -The Bottom Line:We take a long-term approach to helping our customers meet E-mail: business challenges through voice 8 data solutions. Date: 1/20/03 SECTION ONE: Description & Pricing of Products to be Sold DescriptionCode Qty 105533780 2 CP TN1657 DISK DRIVE $1,278.90 $ 2,557.80 $ 1,246.88 Disk drive for each limcessor 106495120 2 CP ADDL MEMORY TN1650B $2,700.00 $ 5,400.00 $ 173.25 Memory upgrade for each processor 107849754 2 CP TN2211 OPTICAL DRV $1,350.00 $ 2,700.00 $ 131.25 New high capacity media storage fors stem translations. One unit for each processor. 108566381 2 CP UN332C DATA STORAGE $540.00 $ 1,080.00 $ 131.25 Stora a device for each processor 150938 1 DEF DISC G3R DUP $1,350.00 $ 1,350.00 $ 656.25 Duplication of common controls for high level reliabil' and insured uptime in the event of system control failure. 150940 1 CP TN2302 MEDPRO BOARD $ 7,003.62 $ 7,003.62 $ 80.00 Internet Protocol Call Control. 151423 1 CP TN799N CLAN BOARD $ 973.19 $ 973.19 $ 80.00 Make system a node on City of Azusa's data network and simplifies:administration and speeds up signaling and control between systems. 1 INTEGRATE CLAN to CUSTOMER NETWORK - $ 560.00 Includes basic integration to the network for the CLAN card to allow for site administration and IP networking 165400 1 DEF SFTW ADDL HR ANCMT FOR TN2501 RTU $3,500.00 $2,000.00 $ 165451 1 CP TN2501AP ANCMT BOARD $6,900.00 $5,579.00 $ 423.00 Announcement board and additional iih_t to use license allows for 60 minutes of announcement storage at 64kbs 030 i -�_ A 1lM . (Total Communications Solutions. Total Customer Service. 108942 1 BCMR DESKTOP FIVE USER R2 $11,124.00 $ 11,124.00 $ 975.00 Five BCMSVu Supervisor Licenses 175874 8 AVAYA BCMS RPTG DSKTOP 1-20 AGT $94.50 $ 756.00 $ 223.00 Reporting Licenses for eight agents 172587 11 R8&PRIOR TO MV UPG SFTW LIC DEFr $27,000.00 $ 27,000.00 $ 918.75 Software License Upgrade from current re-release 8 Definity to Current Multivanta a Release 12 175409 1 MULTIVANTAGE DOC $0.00 $ - $ Documentation for the Multi Vantage Solution 175556 1 ASA R1.12 BASE PKG $0.00 $ $ - Ava a S stem Administration used to administer the Definity from any accessible LAN endpoint 175147 7 IP STA SFTW R LIC 1 PT $0.00 $ $ Station Licenses for IP Hard hones and Soft hones, one is uired for each IP based enduser communication device. 175707 5 POWER SUPPLY 115181 AND CAT 5 CABLE $0.00 $ $ - Ava a IP Phones take advantage of power over Ethernet that the Ava a Cajun switches provide for, at this time, the City of Azusa is not using the Cajun switches and will require this power supply for each set. 176576 2 IP SOFTPHONE R4 LIC $0.00 $ - $ IP So hone licenses-for two users 1889-66B 5 IP PHONES DGTL VCE TERM 4606 BLACK $445.001 $ 2,225.00 $ 350.00 Six button Black IP Hard hones 700245293 2 AVAYA IP SOFTPHONE R4 CD-ROM $0.00 $ $ - Software for the IP So hone OTHER SPECIAL FEATURES REQUESTED Included in the MultiVanta a Software Platform is a 5 user License for the EC500 funchonaW for bridiged calling 4 Hour of Technical Software Training-John Post $ 800.00 Estimated Tax 8,25% $ 5,754.26 Project Total $ 82,251.49 031- am- - s��&MM= Total Communications Solutions. Total Customer Service. SECTION TWO: Description & Pricing of Services and/or Installation to be Performed Please see the Statement of Work SECTION THREE: Trade-In Equipment & Pricing $500 Rebate for the old CMS System has been applied and Daycom Systems Inc. will be removing the components at the time of installation. Note:Total does not include tax avid shipping. These prices are good for 30 days. No return of software will be permitted. For approved return of resellable Equipment, Daycom may charge a 20%restocking fee. Accepted By: Daycom Systems, Inc. Customer By: Scoff Beckner By: Its: Account Executive Its: On: On: Date Date i 032 !Wks Tota!Communications Solutions. Total Customer Service. APPENDIX B - AZUSA PURCHASING CONTRACT Daycom Systems, Inc. agrees to the terms and conditions that are presented in the City of Azusa Purchasing Agreement with the exception of section 3.4. While Daycom will attempt to perform services in accordance to the outlined schedule above, Daycom is unable to accepted section 3.4 in regards to the liquidated damages. The payment terms agreed to by the City of Azusa will be 50% at the time of delivery and the remainder upon completion of the project. 033 City of Azusa PURCHASE OF [ENTER EQUIPMENT NAME HERE] iA kv PURCHASE CONTRACT BETWEEN . 4_ CITY OF.A,ZUSA_i A.N]b - - d 4d PURCHASBCONTRACTFORTHE_ - CITY OF A2USA LL 034 Purchase of 1. PARTIES AND DATE. This Contract is made and entered into this day of 200 by and between the CITY OF AZUSA(hereinafter called the"City") and [INSERT VENDOR NAME HERE] (hereinafter called the"Contractor'). 2. RECITALS. - - 2.1 The City is amunicipal agency organized under the laws of the State.of California,with power to contract for services and purchase equipment necessary to achieve its purposes; 2:2 Contractor;.in response to-a Notice Inviting Bids and.Specifications for [INSERT TYPE OF EQUIPMENT HERE] issued by City on [INSERT DATE HERE] Lias subruitted a bid proposal for sale of a [INSERT EQUIPMENT TYPE HERE] to City ' s•3 3 'City has duly opened and con"stdered the Contracfbr s btd pivposal,"end ' •„ ~ ` duly awarded the;bid to Contractor in accordance with the:City of A2usa Purofiasmg Requirements'and applicable.bid documents." 3. :TERMS. 3.i -' Incorporation of Documents; Thts Contract includes and hereby incorporates in`full by"referencethe following doegments,iricludmgall eiihtbits;drawings;specifications and documents therean and ' attachments"and addenda thereto('Spectficatio is') a Quotation from"NDOR.NAME] b. Standard Specifications City of Azusa Specifications fora _ CBidder's Proposal tto Furnish a. d General:Condttions -.. e. Drrawings(if applicable) ' f Addenda(if applicable) _ • r _ r d l � (Project l!io. ' ) A;copy of the Specifications is attached hereto as Exfiibit"A . WadFamYMdweCwnu7mpUe ry i _n CONTRACT a 1 tl 035 I 3.2 Contractor's Basic Obligation. Contractor promises and agrees,at its own cost and expense,to famish to City [INSERT EQUIPMENT TYPE HERE) as described in the Contract(hereinafter the ). Such purchase of the shall include an the standard manufacturer's chassis warranty for a total purchase price of [ENTER DOLLAR AMPINT HERE] )(including sales tax),as specified in the Specifications,Quotation and Bidder's Proposal submitted by the Contractor in response to the above referenced purchase. Such amount shall be subject to adjustment in accordance with the applicable terms of this"Contract. Receipt of the [EQUIPMENT NAME] shall be subject to and performed in accordance with the above reference documents.. 3.3. Standard of Performance. Contractor shall perform and/or deliver the[EQUIPMENTYNAME] purchased under this Contract in a skillful and wdrkmanlike manner and consistent.wit}%the standards _ generailyrecognized as being employed by professionals in the sarire discipline in the Sate of California Contractor represents and maintains that itis skilled in the professional calling neces r sary to perform and deliver the.required purchase item Finally,Contractor further represents'thatit, its enipioyees and subcontractors have allaicenses,permits,qualifications and approvals of whatever nature that are legally-required,to perfoririand deliver the purchased item,and that such licenses and approvals shall.:be maintained throughout the = - deliveryitem - _ .3.4' Period of Performance Contractor shall,perform and compleie and deliver all items under this Contract within _days after receipt of order:Xuritractor shOl-delrver the fEQUIPMENT] m sfnci 4- accordance with any completion schedule;construction schedule-or.pr je i milestones developed pursuant to provisions of the Contract;including bat no"t limited to the Project Schedule and Quotation.Notes,if any;located in She Specifications. ' _ Contract6r agrees that if delivery is not performed within the aforementioned period. and/or,puisuant to'any such completion schedule;cwnstiuction schedule or pre jeci`milestones developed pursuant io provisions of the Contmct •including butnot limited to the'Project Schedule and Quotation Notes located in tbe,Specifications;liquidated damages wiltapply in. the amount of•Oi[e Hundred,Dollars($100.00)per day as.provided bythe applicable _ provisions of the Specifrcatiohs'of the'-Contract. IF (Protect 3 5 City's Basic.Obligation. _ wavPo.w re.r.cmu.er�..` CONTRACT-2 _ 036 City agrees to pay to.Contractor,as full consideration for the satisfactory performance by the Contractor of the obligations required by this Contract,the above referenced _ compensation in accordance with compensation provisions set forth in the:Contract. 3.6 Attorney's Fees. If either party commences an action against the other party, either legal, administrative of otherwise,arising out of or in connection with this Contract,the prevailing party in such action shall be entitled to have and recover from the losing party reasonable attorneys'fees and.all other costs of such action. 3.7 Successors. i The parties do for themselves;their heirs,executors,administrators,successors,and assigns agree to the full.performance'rof all of the provisions cwntarned in.this Contract , Contracto-rmay not either voluntarily or by.actton of law,assign any obligation assumed by .Y a Contractor'he eunder without&ete for written consent of the City S „ [SIGNATURES ON FOLLOWING PAOEj i, � I , a I wadTand rdu cmtir tmpr CONTRACT 3= Z 037 (Project No. ) _l CONTRACTOR CITY OF AZUSA By: By: Rick Cole Operations Manager City Manager Tax LD. Number Attest: Number C ' Clerk.ty Approyed.asto Form ' By: Y i Best Best&.Krieger LLP City Attorney "w�mranwnv�w.ce.�.Tarpbs: . CONTRACT-4 m (Project No. ) EXHIBIT"A" [ATTACH APPLICABLE QUOTATION, SPECIFICATIONS AND BIDDER'S PROPOSAL] z a E I i F . r r , 'e .. wa:vr�:rra..ecan«+Ta.p+• CONTRACT.-5 ` m , Total Communications Solutions. Total Customer Service. APPENDIX C - WAS CONTRACT 040 1 n JAN 21 2003 12: 04PM DRYCOM SYSTEMS NICK DELIS 9498312013 P. 1 S Department of General Services Procurement Division 707 Third Street, 24' Floor West Sacramento, CA 95605-2811 State of California MULTIPLE AWARD SCHEDULE SUPPLEMENT NO. 1 Avaya Onc . 3-01-70-1488A - . Brand - Lucent Brand - Octel ACD - Equipment Audio/Video - Switching Systems Conferencing - Video -Data Communication - Data Switch Data Communication - Wireless ISDN - System LAN/WAN - Wireless Network. PBX System Voice - Mail System Voice - Response System E ACT NUMBER: 3-01-70-1488A TERM DATES: 9/17/2001 throu h 2/28/2003 BUTION: STATEWIDE . CMAS Schedule A — Based on GSA#GS-35F-4321 D (Avaya Inc.), Includes modifications P00378 - - - [PURPOSE OF SUPPLEMENT] The purpose of this contract supplement is to Incorporate the following changes: 71 Extend the CI-AAS termination date to February 26, 2003 and 2) Add resellers as listed on page 2 Effective Date: 11/0812002 MARY GILBERT, ogram Analyst, Caiifomla Multiple Award Schedules Unit 041 JAN 21 2003 12: 04PN DRYCOM SYSTEMS NICK DELIS 9499312013 p. 2 CALIFORNIA MULTIPLE AWARD SCHEDULE(CMAS) . AVAYA INC. CMAS NO.3-01-70-1488A CMAS CONTRACT BASE PRODUCT INSTALLATION This CMAS contract is based on GSA#GS-35F-4321 D Product installation Is not allowed unless specifically (Avaya/LucentTechnologies)with a GSA term of May provided for In the CMAS contract. If provided for,the 21,1996 through May 20,2002 including CMAS Contractor is fully responsible for all installation modifications P00308. services performed under the CMAS contract. Product installations must be performed by manufacturer authorized personnel and meet manufacturer documented specifications,unless otherwise specifically CMAS CONTRACT TERMS AND CONDITIONS stated In the agency's purchase order/Statement of Work (SOW). The attached CMAS contract terms and conditions dated February 1,2001 are incorporated into this contract. TELECOMMUNICATIONS EQUIPMENT PURCHASE ORDERS Prior to using this contract,all slate agencies are advised to review the Department of General Services, All Individual purchase orders issued against this CMAS Telecommunications Division,`State contract incorporate these ordering provisions as well as Telecommunications Management Manuar(STMM), all terms and conditions. Category 0400 Sections for current delegation parameters applying to the acquisition of The supplier must immediately reject orders that are not telecommunications equipment and services. This accurate. Discrepancies are to be negotiated and provision does not apply to local governments. Incorporated into the order prior to the products and services being delivered. VIDEO CONFERENCING ISSUANCE OF PURCHASE ORDER Agencies interested In procuring video conferencing equipment and services should be aware of the state's Purchase orders must be Issued before the expiration of network and equipment interoperability concerns,which the CMAS contract_ Performance (delivery of product extend welt beyond any single vendors equipment. As a and/or services)of the purchase order may be performed minimum,agencies must ensure that the hardware, and completed after the expiration of the CMAS contract firmware and software complies with current international but must be performed within the delivery date(s) CCITT video conferencing standards. requirement(s)as stated on the purchase order. TRAINING SELF-DELETING FEDERAL GSA TERMS AND CONDITIONS it Is acceptable to purchase training vouchers in advance of the training being performed if the supplier does not Instructions,or terms and conditions appearing in the invoice,or the State does not pay,for services in Special Items or other provisions of the Federal GSA advance of them being rendered. which are intended to apply to the purchase,license,or rental(as applicable)of the products or services by the THIS CONTRACT PROVIDES U.S.Government in the United States,and/or to any overseas location shall be self-deleting. (Example; This contract provides for the purchase and warranty of "Examinations of Records"provision). hardware and software,installation,repair,maintenance, software maintenance and training. Federal regulations and standards, such as Federal Acquisition Regulation(FAR),Federal Information Only products from the manufacturers listed below are Resources Management Regulation(FIRMR),Federal available within the scope of this contract: Information Processing Standards(FIPS),General Services Administration Regulation (GSAR),or Federal • Lucent Installment Payment Agreement(FIPA)shag be self- • Octel deleting. Federal blanket orders and small order procedures are not applicable. EXCEPTIONS TO THEATTACHED FEDERAL GSA - MULTIPLE AWARD SCHEDULE ORDER OF PRECEDENCE The California Multiple Award Schedule terms end Personal services and personal services training are not W available under this contract, conditions shall prevail it there Is a conflict between the terms and conditions of the Contractors federal GSA(or LEASING: other multiple award contract),packaging,invoices, catalogs,brochures,technical data sheets or other Except as stated below,Federal GSA Lease provisions documents(see CMAS Terms and Conditions, are NOT acceptable,and cannot be sold through CMAS CONFLICT OF TERMS). Updated 9!4/01 2 042 JAN 21 2003 12: 04PM DAYCOM SYSTEMS NICK DELIS 9498312013 p. 3 CALIFORNIA MULTIPLE AWARD SCHEDULE(CMAS) AVAYAINC. CMAS NO.3-01-70-1489A because the rates and contract terms are unacceptable, The Procurement Division will bill each state and local and not applicable to the state. agenoyfor use of CMAS contracts,equal to 1.21%of the value of each order. The Procurement Division will bill SEAT Management financing options are NOT available state and local agencies directly. The 1.21%fee should through this contract. NOT be included In the order total,or remitted before a bill is received from us. Federal Lease to Own Purchase(LTOP)and hardware r each order shall be forwarded to the rental provisions With no residual value owed at end term are acceptable($1 residual value is acceptable). Department of General Services(DGSI Procurement Division CMAS Unit 1500-5t Street.suite 116. As an altemative,agencies may consider financing through Sacramento CA 95814.Attention:Carol umneet the state's financial marketplace GS$Mart'"'. All terms and fIMSG C419), conditions end lenders are pre-approved for easy financing. The GS$MartTM Internet address is wwwAns.ca.cov/od then ORDERING PROCEDURES click on GS$Marta" Buyers without Internet-access may — ,.... _... contact the GS$MartTM Administrator,Pat Mullen by phone at The ordering entity is required to complete and distribute 916/327-2600 or via e-mail at patmutienQdas.ca.aov for the order form. For services,the ordering entity shall further information. modify the Information contained on the forth to Include the service period(start and end date),and the monthly SMALL BUSINESS ORDERING CONSIDERATION cost(or other Intermittent cost),and any other Information pertinent to the services being provided. The Effective January 1, 1999,pursuant to Assembly Bill No. cost for each Me item should be included on the order, 2405,prior to placing orders under the California Multiple not just system totals. Award Schedule program,state agencies shall whenever practicable first consider offers from small businesses CONTRACT PRICING that have established CMAS contracts]GC Section 14646(b)]. NOTE: Substantiation of compliance with this Contract prices for products andfor services are requirement will be requested by the Department of maximums. The ordering agency Is encouraged to General Services auditors when your files are reviewed. negotiate lower Prices. The following website lists CMAS Small Business STATE POLICY Partners: USE OF CMAS IS OPTIONAL. AGENCIES ARE www.priAgs.ce•gW STRONGLY ENCOURAGED TO OPTIMIZE THE (dick on CMAS;go to Small Business Partners) BENEFITS OF THE CMAS PROGRAM BY COMPARING DIFFERENT SCHEDULES FOR VARYING PRODUCTS, ACCEPTANCE TESTING CRITERIA SERVICES AND PRICES,AND CAREFULLY REVIEWING ALL CONTRACT TERMS AND Acceptance testing may be required as specified in the CONDITIONS,TO OBTAIN THE BEST VALUE purchase order for all newly installed technology AVAILABLE. systems,and Individual equipment,and machines which are added or field modified(modification of a machine THE CALIFORNIA MULTIPLE AWARD SCHEDULE from one model to another)after a successful DOES NOT REDUCE OR RELIEVE STATE AGENCIES performance period. OF THEIR RESPONSIBILITY TO MEET STATEWIDE REQUIREMENTSREGARDING CONTRACTS OR ORDER FORM PROCUREMENTS OF GCODS OR SERVICES. Special attention should be given to the Automated Accounting State agencies shall use a Contract/Delegation Purchase System requirements of State Administrative Manual Order(Std.65)for purchases and services. (SAM)Section 72611-62,the Productive Use Requirements of SAM Section 5203. Local governments shall,in lieu of the State's Purchase Order(Std.65),use their own purchase order document. Agencies should be aware that approval from the. Department of Irdormstion Technology(DOM Is required The State Standard Forms can be found electronically at for. the Office of Slate Publishing web sfte: htto•//M w x das ca.aovlaso(select Standard Forms). The . procurement of major information Technology systems . she provides Information on the various forms and use pursuant to SAM Section 4819.39; with the Adobe Acrobat Reader. Beyond the Reader o purchase of imaging equipment which exceed$26,000; capabilities,Adobe Acrobat advanced features may be and utilized if you have Adobe Business Tools or Adobe . purchase of used Information Technology equipment. Acrobat 4.0 installed on your computer. Direct rink to the Standard Forth 65: Special attention is to be given to the following: http-/m vw oso das ca aov/odf/stdOS5.odi Updated 9/4101 3 043 JHN 21 2003 12: 05PM DRYCOM SYSTEMS NICK DELIS 9498312013 p. 4 ' CALIFORNIA MULTIPLE AWARD SCHEDULE(CMAS) AVAYA INC. CMAS NO.3-01-70-1488A • SAM Section 4619.41 and 4832 certifications for INSTALLATION AND TESTING Information Technology procurements and compliance with policies. Cable and wire products purchased under this • Services may not be paid for in advance. contract must be Installed and tested to EIA/TIA •Agencies must adhere to the guidelines in SAM Section Standards. 212012121 for servicing office equipment •Agencies are required to ile with the Department of PUBLIC WORKS PROJECTS Fair Employment and Housing(DFEH)a Contract Award Report Std. 16 for each order over$5,000 within A public works contract is defined as an agreement for 10 days of award,including amendments which exceed "the erection,construction,alteration,repair,or $5,000. Improvement of any public structure,building,road,or • Pursuant to Public Contend Code Section 10359 state other public improvement of any kind'in accordance with agencies are to report all Consulting Services Contract the Public Contract Code(PCC)Section 1101. State activity for the preceding fiscal year to DGS and the six agencies planning these types.of projects need to review legislative committees and individuals that are listed on � theState Contracting NIgnual(SCM)Section lO for - the annual memorandum from DGS. applicable guidefines and regulations. • Pursuant to Unemployment Insurance Code Section 1088.8,state and local government agencies must Agency CMAS orders may allow for a public works report to the Employment Development Department component only when it Is Incidental to the overall . (EDD)all payments for services that equal$600 or project requirements. Agencies are to ensure that the more to independent sole proprietor contractors. See applicable laws and codes pertalning to the Contractor the oontractor's Std. Form 204, Payee Dats Record,in and sub-Contractor licensing,prevailing wage rates, the CMAS contract to determine sole proprietorship. bonding,labor code requirements,etc.are adhered to by All inquiries regarding this subject.should be forwarded the prime Contractor as well as any sub-Contractor to EDD: Technical questions: 916/651-6945 or during the performance under the agency's CMAS order. Information and forms: 916/857-0529. The bond amount for public works has increased to e YEAR 2000 COMPLIANCE sum not less than one hundred percent (100%) of the purchase order price. Contract language pertaining to Year 2000 Compliance is addressed in the attached CMAS Terms and Conditions. Note: In accordance with Labor Code Section 1773.2, the ordering agency is responsible for determining the INTEGRATED SERVICES appropriate craft,classification or type of worker needed for any contract for public works. Also,the agency Is to Integrated services are not allowed unless specifically specify the applicable prevailing wage rates as provided for in the CMAS mMracL If provided for,the determined by the Director of the Department of contractor is fully responsible for all integrated services Industrial Relations(DIR). In lieu of speciykmg the performed under the CMAS contract. prevailing wage rates,the agency may include a statement on the order that the prevailing wage rates are We encourage agencies to obtain from the contractor a on file at the agency's office,and will be made available customer reference prior to issuance of the purchase upon request. The prevailing wage rates are available order to substantiate that the contractor has successfully from the DIR at www.dir.ca.gov(select Sterdstics 8 completed at least one comparable Integrated services Research)or(415)703-4774. Project STATE CONTRACTOR'S LICENSE CABLE AND WIRE Avays Inc.'s Calffomia Contractor's License number is CABLE AND WIRE PRODUCTS PURCHASED UNDER THIS 789910. This is a Class C-10 license which is.good CONTRACT ARE FOR INFORMATION TECHNOLOGY through 1/312003. PROJECTS ONLY(COMPUTER AND prior to placing an order against this contract agendas TELECOMMUNICATIONS)AND CANNOT BE USED FOR are to contact the State Contractors License Board i i- GENERAL PURPOSE INSTALLATIONS. I- 800-321-2752 to verify that the Contractors License Agency questions regarding the purchase and or shown above is still active and in good standing. The Installation of cable and wiring may be directed to State Contractors License 8card can also be accessed via the Internet at httpl&"WL.cslb.ca.gov DGS-Telecommunications Division, Facilities Engineering Unit at(916)657-6131. LEASFJPURCHASE ANALYSIS State agencies must complete a LeasefPurchase Analysis(LPA)to determine best value when contemplating a leasertental,and retain a copy for future Updated 9/4/01 4 044 JAN 21 2003 12: 06PM DAYCOM SYSTEMS MICK DELIS 9498312013 P. 5 CALIFORNIA MULTIPLE AWARD SCHEDULE(CMAS) AVAYA INC. CMAS NO.3-01-70-1488A audit purposes(SAM 3700). The LPA is not required to top of the form. The word'CMAS'signifies that the be approved by the Department of General Services. order contains Items from multiple CMAS contracts. PRICE ANALYSIS 4. The purchasing agency may only use one(1)bill code. CMAS contracts are considered'price analyzerr because they are based upon federal government 5. For each individual contract(as differentiated by multiple award schedules on which a price/oost analysis alpha suffix),the agency must identify and group was already performed,or upon other multiple award together the contract number with line items and schedules where the products have been competitivelysubtatai per contract number(do not include tax in the bid, price compared and are presumed fair and subtatap,AND sequentially Identify each individual reasonable. Therefore,additional analysis Is not contract as Sub#1,Sub#2, Sub#3,etc. This required by the individual ordering agencies. facilitates accurate billing by the Procurement Division. FEDERAL DEBARMENT ___ .. ..._.._ .... .. .. . . . . 6. The total of all items on the purchase order must not When federal funds are being expended,the ordering exceed the order limit Identified in the CMAS contract. e en is required to obtain(retain in file)a signed "Federal Debarment'certification from the Contractor 7. Do not combine Items from both commodity and before the purchase order is issued. information technology contracts. Commodity contracts begin with the number 4 and Information This certification is required by the regulations technology contracts begin with the number 3. The Implementing Executive Order 12548,Debarment and order limits are different for these types of contracts. Suspension,29 CFR Part 98,Section 98.510, Participants;responsibilities. The regulations were MAINTENANCE TAX published as Part VII of the May 26, 1988 Federal e is r(pages 19160-19211). The Board of Equalization has ruled that In accordance With Section 1655 of the Sales and Use Tax Regulations ORDER LIMITS of the Business Texas Law Guide,thetwhenever optional maintenance contracts Include consumable The maximum amount of each transaction placed under supplies,such supplies are subject to sales tax. the award contract is$500,000.00. Generally,the State has the option of entering Into Splitting orders to avoid any monetary limitations is contracts which provide for only maintenance services prohlbifed (i.e.the furnishing of labor and parts necessary to maintain equipment)or contracts which provide for both Do not circumvent normal procurement methods by maintenance services and consumable supply hems(.e. splitting purchases into a series of delegated purchase toner,developer,and staples,for example). orders(SAM 3572). When the State has the first choice available above,the Splitting a project into small projects to avoid either fiscal charges for the provision of maintenance services are not or procedural controls is prohibited(SAM 4819.34). taxable. However,when both maintenance services and consumable supplies are provided(second choice MINIMUM ORDER LIMITATION above),the provision of the consumable.supplies is considered a taxable safe of tangible personal property. The minimum dollar value of an order to be Issued under Therefore,State agencies awarding optional this contract Is$50.00. maintenance contracts are responsible for paying the MULTIPLE CONTRACTS ON STD. 65 ORDER FORM applicable sales tax on the consumable supplies utilized during the performance period of the maintenance Agencies may include muftlplIa contracts from the same contract. supplier on a single Sid.85 Contract/Delegallan The contractor will be required to itemize the Purchase Order. Agencies wishing to create a single consumables being taxed for state accounting purposes. purchase order using muitlple CMAS contract numbers must adhere to the following guidelines,without OPEN MARKETIINCIDENTAL NON-SCHEDULE exception. ITEMS 1. All contracts must be for the same CMAS supplier. The only time that open marketrcncidental,non-schedule 2. The order must go to one supplier location. Items may be Included in a CMAS order is when they fall under the parameters of the Not Specifically Priced 3. Place the word"CMAS"In the space usually reserved (NSP)Items provision. if the NSP provision Is not for the contract number. On Sid.65s,this Is at the included in the schedule,or the products andfor services Updated 914101 s / 045 JAN 21 2003 12: 07PM DAYCOM SYSTEMS NICK DELIS 9498312013 P. 6 CALIFORNIA MULTIPLE AWARD SCHEDULE(CMAs) AVAYA INC. CMAS NO.3-01-70-1488A required do not qualify under the parameters of the NSP priced in the contract,is not subordinate to a provision,the products and(or services must be procured specifically priced cable,and is not eligible to be separate from CMAS. an NSP item. NOT SPECIFICALLY PRICED(NSPI ITEMS b) Supply type items.except for the minimum amount necessary to provide Initial support to Contractors must be authorized providers of the the priced schedule items included in the same hardware/software or services they offer under the Not order. Specifically Priced(NSP)Items provision;or,otherwise, risk convect termination. c) Trade-ins, Upgrades,involving the swapping of boards,are permissible,where the schedule CMAS Contractor has the option of accepting orders for contract makes specific provisions for this non-contract products and services (NSP items),subject action. In those instances where if is permitted, to the following requirements. Agency orders containing the schedule order must Include the ... only NSP Itemsareprohibited,.To be included on an . -- - - replacement Item.and.an order.notation.thal the. . order Issued under this contract, NSP hems must adhere purchase involves the swapping of a board. to the following provisions and limitation. d) Rams which do not meet the Productive Use 1. The Contractor agrees to specifically monitor all Requirements. schedule orders received to ensure adherence to this provision. e) Any other item or class of items which is specifically excluded from the scope of this 2. A schedule order containing NSP Rams may be schedule contract. issued only N such an order results In the lowed f) Public Works components which are NOT overall alternative to meet the needs of the incidental to the overall project requirements. Government CMAS Terms and Conditions,General Provision 952. 3. NSP Items shall be clearly identified In the schedule order. Any product or service already specifically g) Products or services the supplier is NOT factory priced and included in the schedule contract may not authorized or otherwise certified or trained to be Identified as a NSP item. provide. 4. Maximum Order Limitation: For orders$250,000.00, h) Follow-on consultant services that were or less,the total dollar value of all NSP items previously recommended or suggested by the Included in a schedule order shall not exceed same supplier for information technology $5,000.00. For orders exceeding$250,000.00,and projects. Refer to the CMAS Information at the option of the supplier,the total dollar value of Technology.General Terns and Conditions, all NSP Items In a schedule order shall riot exceed Provision tl6. 5'ya of the total cost of the order,or$25,000.00 whichever is lower. This includes orders with - The Contractorwill not accept any order Linder the approved'exception'limbs. contract containing NSP items which does not conform to these temps. The Contractor will promptly notify the 5. An NSP Rem Included in an order issued against a Customer agency issuing the non-bonfor ming order of its schedule contract is subject to all of the terms and non acceptance and the reasons for.its non acceptance. conditions set forth in the schedule contract. PRODUCTIVE USE REQUIREMENTS 6. The following NSP items ARE SPECIFICALLY EXCLUDED from any order Issued under this Each equipmem or software component must be in contract: current operation for a paying customer and the paying customer must be external Id the Contractors e) Items which am not intended for use In directly organization(not owned by the Contractor and not supporting the priced items included in the owning the Contractor). some order. An Rem must be subordinate to the specifically-priced Rem that the NSP item Is To substantiate compliance with the Productive Use supporting. Requirements,the Contractor must provide upon request the name and address of a customer installation and the For example,a cable,which Is not otherwise name and telephone number of a contact person. specifically priced in the contract,is subordinate to a specifically priced printer or facsimile The elapsed time such equipment or software must have machine,and Is eligible to.be an NSP Rem been in operation is based upon the importance of the subject to that cable meeting the remaining NSP equipment or software for system operation and Its cost. requirements. However,a primer or facsimile The following designates product categories and the machine,which Is not otherwise specifically required period of time for equipment or software Updated 9/4101 e 046 JAN 21 2003 12: 08PM DAYCOM SYSTEMS NICK DELIS 9498312013 p. 7 CALIFORNIA MULTIPLE AWARD SCHEDULE(CMAS) AVAYA INC. CMAS NO.3-01-704488A operation prior to approval of the replacement kern on SHIPPING INSTRUCTIONS CMAS. F.O.B.(Free On Board) Destination. Category 1 -Critical Software: Critical software is software that is required to control the overall operation PAYMENT TERMS of a computer system or peripheral equipment. Included in this category are operating systems,data base Net 45 days. management systems,language Interpreters, assemblers and compilers,communications software. Each state accourding office must have a copy of the and other essential system software. attached Vendor Data Record(Std.204)in order to process payment of Invoices. Agencies should Cost Prior Operation forward a copy of the Std.204 to their respective More than$100,000 8 months accounting office(s). Without the Std.204,payment $10,000 up to$100,0(10 4 months may be unnecessarily delayed. .. Less than-$10,000- --- 1 month. -.. DELIVERY Category 2-All Information Technology Equipment and Non-Critical Software: Information technology 1 -160 days after receipt of order,or as negotiated equipment is defined In SAM Section 4819.2. between agency and Contractor. Cost Prior Operation WARRANTY More than$100,000 6 months • $10,000 up to$100,000 4 months For warranties,see the federal GSA schedule and the Less than$10,000 1 month CMAS Terms and Conditions,General Provisions 19, CMAS Warranty. CREDIT CARD OWNERSHIP INFORMATION Avaya Inc.does not accept the State of California credit card(CAL-Card). Aveya Inc.is a large business enterprise, CONTRACTOR TRAVEL CONTRACT DISTRIBUTION AND UPDATES State agencies(not local governments)should refer to Contractors will Provide to.agencies a copy of their SAM Section 0774"TRAVEL AND RELATED catalog(s)or listing(s),contract terms and conditions, REIMBURSEMENT OF PERSONS NOT STATE and all updates upon request. EMPLOYEES,"when transportation and per diem costa are to be reimbursed by the state. SUPPLIER QUARTERLY REPORTS If the contract provides for travel, state agendas may pay Contractors are required to submit a detailed report travel and per diem expenses according to state travel quarterly to the DGs Procurement Division,CMAS time and per diem rules(represented employee rates} Unit,1500-5th Street Sutta 116,Sacramento,CA and verified receipts. Local government,education and Unit,1 Attention: setQuaSuly Report Processing. A special districts will pay travel time and per diem according to their statutory requirements. Ali travel and separate report Is required for each contract.as differentiated by alpha suffix(dappilcable). Suppliers per diem expenses must be within contract parameters, with resellers are responsible for reporting reseller'' and Incorporated into the agency's order. ordering activity. Any report that does not follow the Notwithstanding the contract provisions,the stale will not required format or that excludes information will be be responsible for the cost of travel to bring contractor deemed Incomplete. personnel from out of state. However,If requested by the _ _�,,,__for can rrxh ne with exWtlna ordering agency,the state will be responsible for the cost News a--- - of travel from one California agency site to another. schedules and extens[orre or renewals of exlstlna schedules will be approved ONLY if the contractor If travel is NOT addressed or Is not covered In the has submitted to the CMAs Unit all pus.edv reports contract,then the agency cannot include it as a line Kam due lCooles of only purchase orders are no homer on the order. onmotablel Each auartarl report is required within two wags of the end of March June September It is important that the agency and contractor discuss ang 12ROmber of each calendar veer A report is necessary travel requirements prior to Issuing the required n when there is no activity. - purchase order because the detail and cost(only as allowed for in the contract)must be Included in the The report must include the agency name,purchase agency purchase order to be payable, order number,purchase order dale,agency billing code, pre-tax total order cost,agency contact name,address Updated GA101 7 047 JAN 21 2003 12: 09PM DRYCOM SYSTEMS NICK DELIS 9498312013 P. 8 J CALIFORNIA MULTIPLE AWARD SCHEDULE(CMAS) AVAYAINC. CMAS NO.3-M-704488A and phone number,and total dollars for the quarter. Tax SUBMIT ORDERS TO: must NOT be included in the quarterly report,even if the agency Includes tax on the purchase order. AirbumsFM - A sample quarterly report(Attachment A)indicating WWoolsey Canyon Road 056 West required format and information is attached for your est Hills CA 91304 reference. Contact:Dan Zimmerman Voice:(818)888-2181 AMERICANS WITH DISABILITY ACT IADA1 Fax:(425)696-5766 . E-mail:dan a eirbumsfm.com Section 504 of the Rehabilitation Act of 1973 as Form 204:Attached amended;Title A and VIt of the Civil Rights Ad of 1964 as amended;Americans with Disabilities Act,42 USC Daycom Systems Inc. 12101;California Code of Regulations.Title 2,Title 22; 5744 Pacific Center Blvd.Ste 311 California Government Code,Sections 11135,.at seq.:. _.. ._._. . . and other federal and state laws,and Executive Orders San Diego,CA 92121 prohibit discrimination. All programs,activities, Voice:800-824-1661 employment opportunities,and services must be made Contact:Kristi Day EX 120 available to all persons,Including persona with 858.457-6644 fax disabilities. See Attachment B for Procurement e-mail:KristiDtdd yco ems.com Division's ADA Compliance Policy of Nondiscrimination Form 204:Attached on the Basis of Disability. Individual government agencies are responsible for set- Dial-Pro(dba Salient Networks) compliance with ADA regulations. 5750 Fleet Street,Ste 100 Carlsbad,CA 92008 Supplier sponsored events must provide reasonable Contact Pat McCarthy - accommodations for persons with disabilities. Phone:(408)324-3679 ALTERNATIVE MEDIA AND ON-LINE ACCESS TO Fax:(408)324-3679 SCHEDULES a-mm"L•mnccarfirrAsalientnetworks.com Form 204:Attached Contact Contractor directly regarding the availability of schedules or listings on CD ROM,or access to electronic Expaaets of California Inc. Bulletin Board Systems(BBS). 15641 Red Hill Avenue,Suite 200 CONTRACTOR MAILING ADDRESS AND PHONE Tustin,CA 92780 NUMBER Confect:Myrna Santana (949)265-6101 Orders may be mailed to the following address,or faxed email:mvma.Santana(nv=anets.com to(916)4632627: Form 204: Attached Avaya Inc. NetVersam(Atte:Sacramento Division) 11017 Cobblerock Drive,Suite 150 1864 Tribute Rd,Ste.K Rancho Cordova,CA 95670-6049 Sacramento,Ca.95815 Attn: Tom Warren Contact;Keith Nagel Voice:916-286-3330 Agonies with questions regarding products andfor Fax:916-296.3399 services may contact the oomractor as follows: Form 204:Attached Phone: (916)463-2629 or(Ill 632-9129 E-mail: twamen@avaya.com TeleoomNetworking Systems Inc. 421 Teegarden Ave,Die B AUTHORIZED RESELLERS Yuba City,CA 95991 Contact Art Tober Orders may also be placed to the following Phone:(916)992-6198 Authorized Resellers: Fax:(916)992-6199 e-mail:s.toberf�woridne[.att.net The orders will be addressed to and the checks may Form 204: Attached be made payable to the Reseller Identified on the Invoice: Updated 914101 s p 048 JAN 21 2003 12: 10PM DAYCOM SYSTEMS NICK DELIS 9498312013 P. 9 CALIFORNIA MULTIPLE AWARD SCHEDULE(CMAS) AVAYA INC. GMAS No.mi-70-1488A, The Northstar Group AGENCIES QUESTIONS 30 Glastonbury Place Agencies with questions regarding products and/or Laguna Niguel,Ca. services may contact the contractor or Authorized Contact:Ali North Dealer. Telephone:949-443.9146 Fax:949-661-5271 FOR INVOICING PURPOSES,each State Accounting e-mall;anorth&stari M-0 com office must have a copy of the attached resellers Form 204:Attached Payee Data Record(Std.204)In order to process payment of the Invoice. Agencies should forward a Towne Communications Inc copy of the Std.204 to their respective accounting Dba-Synectic Technologies office(s). Without the Std.204,payment may be 1232 South Avenue,Suite A unnecessarily delayed. ..Turlock,CA 9538..0 .-- ._. _...._. . _... . .- .. AUTHORIZED DEALERS ARE RESPONSIBLE FOR Contact Steve Bloom §LENDING A COPY OF ALL PURCHASE Telephone:(916)776-2770 ORDERSIINVOICES TO HAS VIRTUAL Fax number;(916)776-2780 CO AMUNiCAT10N3 INC FOR CMA§QUARTERLY e-mail address;,,$bloomQsvnecdctech.com REPORTING REQUIREMENTS. Form 204:Attached ^^S PROCUREMENT DIVISION CONTACT AND Unified TeiData PHONE NUMBER 425 Second Street Carol Umfleet Sen Francisco,CA.94107 Department of General Services Contact:Roger Benson Procurement DMslon,CMAS Unit Phone:(415)247-6900 x2007 1500-5th Street,Sults 116 FAX:(415)276-2864 Sacramento,CA 95814 email:rbenson0wi.com Form 204:Attached Phone N 916f324-8045 Calnet A 814544045 Fax#910!3234441 VOICE PRO 4000 Executive Parkway San Ramon,CA 94553 Voice:925.866-8866 X257 Fax 925-904-2257 Contact:Karen Queehan e-mail:karmaue0=5voi0pro com Form 204: Attached Updated 914/01 9 . 049 JAN 21 2003 10: 15AM DRYCOM SYSTEMS NICK DELIS 9498312013 P. 1 _ .Y• 4V V♦ 1V.J4 VJV4V VJLVv VA1 WC, Jl VlL1l'LJ P"a v,V a.v •ul vv,. CmA8 C Nfi OR PACIWr .. 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R� � r ideht wnel- m B-rY�v� (es Zoo_Swo FeNu"z*i j „ i 050 AZUSA LIGHT G 'NATIR CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE \\ �l. DATE: JANUARY 29, 2003 SUBJECT: AUTHORIZATION TO ADVERTISE PROJECT W-184, RELINING OF 20-INCH WATERLINE FROM WELL NO. 10 TO THE WILSON RESERVOIR, AND TO RECEIVE BIDS RECOMMENDATION It is recommended that the Utility Board/City Council authorize staff to advertise above referenced water main relining project and to receive bids. BACKGROUND The Water Division has compiled specifications for the relining of the existing 20-inch water transmission line in Gladstone Avenue that carries water from Well No. 10 to the Griffith Reservoir for blending. Part of the project will involve excavating elbows and fittings that cannot be relined using the slipline process, and may Include an above ground crossing of the Big Dalton Wash. FISCAL IMPACT The Engineer's Estimate of cost is approximately $1,000,000. Fiscal impact of the project is negligible as the cost of the project will be reimbursed by other parties. Prepared by: Chet Anderson, Assistant Director of Water Operations 052 C14 AZUSA LIGHT l WATIR CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIFS� DATE: JANUARY 29, 2003 �'�*' SUBJECT: AUTHORIZATION TO ADVERTISE PROJECT W-185, 12-INCH WATERLINE CROSSING BIG DALTON WASH AT GLADSTONE, AND TO RECEIVE BIDS RECOMMENDATION It Is recommended that the Utility Board/City Council authorize staff to advertise above referenced water main construction project and to receive bids. BACKGROUND The Water Division has designed a water main called the 12-inch Dalton Wash Crossing to connect the 12-inch City water line on the east and west sides of Dalton Wash. This pipeline is intended to increase fire flow available to the southeast portion of the water system. The pipeline will be appro)dmately 600 feet long. FISCAL IMPACT Engineer's Estimate for the project is appro)dmately $200,000, and project is included in the 2003 budget. Part of the cost of the project may be funded by another party as part of the relining of the 20-inch line in Gladstone. Prepared by: Chet Anderson, Assistant Director of Water Operations 053 a AGU�A CNl L M4IFl AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES/,lA� DATE: JANUARY 29, 2003 SUBJECT: LEASE AGREEMENT WITH U. S. FOREST SERVICE RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve the attached lease agreement with the United States Department of Agriculture, or specifically with the U. S. Forest Service, for its lease of the San Gabriel Canyon Information Station, and authorize the City Manager to execute the said agreement. BACKGROUND The San Gabriel Division of U. S. Forest Service has a need for a new and larger ranger station at the Azusa entrance to the San Gabriel Mountains. Its existing station is situated on leased property from Azusa Light 8.Water which Inherited it from Azusa Valley Water Company as part of the acquisition by the City in 1993. The U. S. Forest Service first proposed to construct a building by itself about two years ago. From the plans it presented to the City for approval, staff realized that the building would not be aesthetically compatible with the City's long term visioning of the river and mountains. Staff began to explore other options which resulted in an agreement as presented herewith. The agreement calls for the City to construct a building which will provide occupiable space no less than 868 square feet and sufficient parking to include no less than 15 visitor parking spaces. U. S. Forest Service agrees to pay the City $12,000 per.year as lease payment provided that if the City obtains a federal grant, or other federal funding, In connection with construction and Installation of the building, said funds shall be applied to the annual rental amount. Said rental amount is also subject to future adjustments. ;kl / a4 03 �/ 054 f Y Pg. 2 - Lease Agreement with U. S. Forest Service, 1/29/03 UB Agenda In anticipation of successful conclusion of this negotiation, the City has already engaged an Architectural firm to begin the design of this building. Forest Service staff and architects have also begun meetings on the programming phase of the design. FISCAL IMPACT Current budget from Water Division has appropriation of about $700,000 for this project. Of this amount, $91,000 is budgeted for architectural services, $400,000 for the building, and $200,000 for landscaping and paving around the building. Prepared by: J. Hsu Attachment: Lease Agreernent.doc 1 ,:. 055. 1 S F ^. I I I I STANDARD FORM 2 I U.S.GOVERNMENT I I FEBRUARY 1965 I I I EDITION I LEASE FOR REAL PROPERTY 1 I GENERALSERVICES I I I ADMINISTRATION I I I FPR(41 CFR)1-16.601 I I I I i I I I I I I I DATE OF LEASE: I LEASE NUMBER: I I I I I Januaa 1 2003 1 57-91-S8-03- I THIS LEASE, made and entered into this date by and between City of Azusa Azusa Light&Water whose address is P.O.Box 9500 729 N.Azusa Avenue Azusa, California 91720-1395 and whose interest in the property hereinafter described is that of: Owner hereinafter called the Lessor,and the UNITED STATES OF AMERICA, hereinafter called the Government: WITNESSETH: The parties hereto for the consideration hereinafter mentioned, covenant and agree as follows: 1. The Lessor hereby leases to the Government the following premises: 868 Occupiable square feet of office and related space 15 visitor parldng spaces To be constructed at the northeast junction of Highway 39 and Old San Gabriel Canyon Road, Azusa,California. To be used for the San Gabriel Canyon Information Station. 2. TO HAVE AND TO HOLD the said premises with their appurtenances for the term beginning on date of occupancy will be documented by Supplemental Lease Agreement for the twenty year term, subject to termination rights as may be hereinafter set forth. 3. This paragraph is deleted. 4. The Government may terminate this least at any time after the fust ten years or any time thereafter by giving at least 120 days notice in writing to the Lessor and no rental shall accrue after the effective date of termination. Said notice shall be computed commencing with the day after the date of mailing. 5. This paragraph is deleted. 6. This paragraph is deleted. 056 r i 7. The following are attached and made a part hereof: Section 1 - Table of Contents Section 2—Summary/Overview Section 3—General Architectural Section 4—Special Requirements Section 5—General Clauses Section 6—Representations and Certifications 8. The following changes were made in this lease prior to its execution: Paragraphs 3,5 and 6 are deleted in their entirety and Paragraphs 9, 10, 11, 12, 13,and 14 are hereby incorporated. IN WITNESS WHEREOF,the parties hereto have hereunto subscribed their names as of the date fust above written I I I LESSOR I I I I BY I I (Signature) (Signature) I I I I I I I I IN PRESENCE OF: I I (Signature) (Address) I I I I I I I I UNITED STATES OF AMERICA GENERAL SERVICES ADMINISTRATION I I I I I I JUDY I.REDDIN I I BY LEASE CONTRACTING OFFICER I I (Signature) (O91cial Title) I I I I I STANDARD FORM 2 FEBRUARY 1965 EDITION i 057 i F � ti SHEET NUMBER 1,ATTACHED HERETO AND FORMING A PART OF LEASE NO. 57-91S8-03- 9. The Government shall pay the Lessor an annual rental amount as follows: The amount of Twelve Thousand Dollars and No Centers($12,000.00)shall be due and owing as set forth herein,subject to adjustment described herein,as maybe determined in the reasonable discretion of the Lessor. In the event the Lessor obtains a federal grant, or other federal funding,in connection with construction and installation of the San Gabriel Canyon Information Station, said funds shall be applied to the annual rental amount,as may be determined in the reasonable discretion of the Lessor. Payment will be made monthly in arrears. Rent for a lesser period shall be prorated. Rent checks shall be made payable to: City of Azusa. 10.Insurance: The Government is self-insured. If the Government or its officials,agents,employees,guests,licensees, contractors,invitees,or subtennants(if applicable)are the cause of any insurance claims,then the self-insurance of the Government shal be primary to any policy or coverage maintained by Lessor. I I.Notices: All notices or other communications required hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail,postage prepaid,return receipt requested,and shall be deemed received upon the earlier of(i) if personally delivered,the date of delivery to the address of the person to receive such notice,(il)if mailed,two(2) . business days after the date of posting by the United States Post Office. City: City of Azusa P.O.Box 9500 729 N.Azusa Avenue Azusa,CA 91702 Government: Lease Contracting Officer U.S.Department of Agriculture Forest Service,Pacific Southwest Region 1600 Tollhouse Road Clovis,CA 93611 12. As between Lessor and the Government under this Lease,the parties hereby acknowledge and agree that Lessor shall not be subject to any of the following types of requirements which may otherwise apply to Lessor under this Lease: Goals,reporting and any other requirements in connection with subcontracting with small business,veteran-owned small business,service-disabled veteran-owned small business,HUBzone small business concerns,small disadvantaged business and women-owned small business concerns. Recruitment,advertising,job posting,noticing`and any other requirements in connection with Special Disabled Veteran and Veterans of the Vietnam Era and other eligible veterans. Recruitment,advertising,posting,noticing and any other requirements in connection with workers with disabilities. 13. Utilities. The utilities will be paid by the Government on a metered basis and will include electricity and/or gas to provide power for heating,ventilation,and air conditioning,and electrical or gas service as needed for the Govement's operations. The Government will also pay for sewer,trash disposal,and water services. 14. Janitorial Services. The Government shall provide janitorial services for the leased space and provide replacement of supplies including restroom products and flourescent tubes and light bulbs in building. INITIALS & PAGE 3 LESSOR GOVT V SECTION 1 —TABLE OF CONTENTS Page STANDARD FORM 2 —U. S. Government Lease For Real Property 1-3 SECTION 1 TABLE OF CONTENTS 4-6 SECTION 2 SUMMARY/OVERVIEW 7 2.1 AMOUNT AND TYPE OF SPACE 7 2.2 LEASE TERM/TERMINATION/RENEWAL OPTION 7 2.2.1 Lease Term 7 2.2.2 Termination 7 2.3 LOCATION 7 SECTION 3 GENERAL ARCHITECTURAL 8 3.1 QUALITY&APPEARANCE OF BUILDING EXTERIOR (Sep 2000) 8 SECTION 4 SPECIAL REQUIREMENTS 9 4.1 GENERAL 9 4.2 REQUIRED PARKING SPACE 9 4.2.1 Visitor Parking 9 4.2.2 Parking Lighting 9 4.3 SPACE LAYOUT 10 4.3.1 Layout and Finishes 10 SECTION 5 GENERAL CLAUSES 11 5.1 DEFINITIONS 11 5.1.1 Definitions (GSAR 552.2704;09/99) 11 5.1.2 Rentable Space (Sep 2000) 12 5.1.3 ANSI/BOMA Office Area Square Feet (Sep 2000) 12 5.1.4 Common Area Factor (Sep 2000) 12 5.2 GENERAL 12 5.2.1 Subletting and Assignment (GSAR 552.270-5;09/99) 12 5.2.2 Successors Bound (GSAR 552.270-11; 09/99) 12 5.2.3 Subordination,Nondisturbance and Attomment 12 (GSAR 552.270-23;09/99) 5.2.4 Statement of Lease (GSAR 552.270-24;09/99) 13 5.2.5 Substitution of Tenant Agency (GSAR 552.270-25;09/99) 13 5.2.6 No Wavier (GSAR 552.270-26;09/99) 13 5.2.7 Integrated Agreement (GSAR 552.270-27;.09/99) 13 5.2.8 Mutuality of Obligation (GSAR 552.270-28;09/99) 14 5.2.9 Federal,State,and Local Taxes (FAR 52.229-3;01/91) 14 5.2.10 Lease Recording 14 5.2.11 Ownership Changes,Change of Name 15 5.2.12 Restriction on Advertising (GSAR 552.203-71;09/99) 15 5.2.13 Indemnification 15 5.2.14 Legal Fees 15 INITIALS L & PAGE 4 ESSOR GOVT 059 r.t�aax�rgr. F z 5.3 PERFORMANCE 16 5.3.1 Delivery and Condition (GSAR 552.270-17;09/99) 16 5.3.2 Default in Delivery-Time Extensions (GSAR 552.270-18;09/99) 16 5.3.3 Progressive Occupancy (GSAR 552:270-19;09/99) 16 5.3.4 Effect of Acceptance and Occupancy (GSAR 552.270-21;09/99) 16 5.3.5 Maintenance of Building and Premises-Right of Entry 17 (GSAR 552.270-6;09/99) 5.3.6 Failure in Performance (GSAR 552.270-10;09/99) 17 5.3.7 Default by Lessor During the Term (GSAR 552.270-22;09/99) 17 5.3.8 Fire and Casualty Damage (GSAR 552.270-7;09/99) 17 5.3.9 Compliance with Applicable Law (GSAR 552.270-8;09/99) 18 5.3.10 Alterations (GSAR 552.270-12;09/99) 18 5.3.11 Subsequent Tenant Improvements$100,000 or Less (Sep 2000) 18 5.3.12 Acceptance of Space (GSAR 552.270-29;09/99) 18 5.4 INSPECTION 18 5.4.1 Inspection-Right of Entry (GSAR 552.270-9;09/99) 18 5.4.2 Construction Inspections 19 5.4.3 Construction Drawings Review 19 5.4.4 Certificate of Occupancy 19 5.5 PAYMENT 19 5.5.1 Prompt Payment (GSAR 552.232-75;09/99) 19 5.5.2 Electronic Funds Transfer Payment (GSAR 552.232-76;03/00) 20 5.5.3 Invoice Requirements (GSAR 552.232-70;09/99) 21 5.5.4 Payment (GSAR 552.270-20;09/99) 21 5.5.5 Payment Due Date 21 5.6 STANDARDS OF CONDUCT 21 5.6.1 Convenant Against Contingent Fees (GSAR 552.203-5;02/90) 22 5.7 ADJUSTMENTS 22 5.7.1 Price Adjustment for Illegal or Improper Activity 22 (GSAR 552.203-70;09/99) 5.7.2 Proposals for Adjustment (GSAR 552.270-13;09/99) 22 5.7.3 Changes (GSAR 552.270-14;09/99) 23 5.8 AUDITS 23 5.8.1 Examination of Records by GSA (GSAR 552.215-70;02/96) 23 5.9 DISPUTES 24 5.9.1 Disputes (FAR 52.233-1;07/02) 24 5.10 LABOR STANDARDS 24 5.10.1 Equal Opportunity (FAR 52.222-26;04/02) 25 5.10.2 Equal Opportunity for Special Disabled Veterans,Veterans 26 of the Vietnam Era,and Other Eligible Veterans (FAR 52.222-35; 12/01) 5.10.3 Affirmative Action for Workers with Disabilities 28 (FAR 52.222-36;06/98) 5.10.4 Employment Reports on Special Disabled Veterans,Veterans 29 of the Vietnam Era,and Other Eligible Veterans (FAR 52.222-37; 12/01) 5.11 SUBCONTRACTING 29 5.11.1 Employment of Aliens 29 5.11.2 Protecting the Government's Interest When Subcontracting with 29 Contractors Debarred,Suspended,or Proposed for Debarment (FAR 52.209-6;07/95) 5.11.3 Recruitment and Advertising 30 INITIALS & PAGES LESSOR GOVT 060 SECTION 6 REPRESENTATIONS & CERTIFICATIONS 31 6.1 SMALL BUSINESS PROGRAM REPRESENTATIONS 31 FAR 52.219-1;04/02) 6.2 WOMEN-OWNED BUSINESS (FAR 52.204-5;05/99) 33 6.3 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS 33 (FAR 52.222-22; 02/99) 6.4 AFFIRMATIVE ACTION COMPLIANCE (FAR 52.222-25;04/84) 33 6.5 PROHIBITION OF SEGREGATED FACILITIES 34 (FAR 52.222-21;02/99) 6.6 CERTIFICATE OF INDEPENDENT PRICE DETERMINATION 34 (FAR 52.203-2;04/85) 6.7 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS 34 TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (FAR 52.203-11;04/91) 6.8 AUTHORIZED NEGOTIATORS 35 6.9 FORMER USDA EMPLOYEES 35 6.10 FLOOD PLAIN OR WETLAND (E.O. 11988,SEC.3b) 35 6.11 PRIME FARMLAND 35 6.12 RECORDED OWNER 35 6.13 TAXPAYER IDENTIFICATION (FAR 52.204-3; 10/98) 35 6.14 DATA UNIVERSAL NUMBERING SYSTEM 36 (FAR 52.204-6;06/99) INITIALS & PAGE 6 LESSOR GOVT 061 1 SECTION 2 - SUMMARY/OVERVIEW 2.1 AMOUNT AND TYPE OF SPACE. . I., The Government is interested in leasing office and related space consisting of approximately 1,500 rentable square feet of quality office and related space, and parking for 15 vehicles. Rentable space must yield 850 occupiable square feet of office area for use by Tenant for personnel, furnishings, and equipment. Space shall conform to the requirements, terms and provisions set forth in this Solicitation for Offers (SFO). For purposes of this solicitation, the definition occupiable square feet is in the paragraph entitled ANSIIBOMA Office Area Square Feet (Section 10, General Clauses 10.1.4) of this lease. Unless otherwise noted, all references in the SFO to square feet shall mean ANSI/BOMA Office Area square feet. 2.2 LEASE TERM/TERMINATIONIRENEWAL OPTION 2.2.1 LEASE TERM -The term of the lease will be a 20 year term, from the date of occupancy. 2.2.2 TERMINATION - The Government may terminate this lease after the first ten years or at any time, thereafter. The Government will provide a minimum of 120 days written notice to the Lessor. 2.3 LOCATION The space shall be located at the Northeast junction of Highway 39 and Old San Gabriel Canyon Road, Azusa, California. INITIALS & PAGE 7 LESSOR GOVT 064 f SECTION 3 - GENERAL ARCHITECTURAL 3.1 OUALITYAND APPEARANCE OF BUILDING EXTERIOR (Sep 2000) The space offered should be located in a modem office building with facade of stone,marble,brick, stainless steel,aluminum,or other permanent materials in good condition acceptable to the Contracting Officer. If not in a new office building,the space offered should be a building that has undergone,or will complete by occupancy, first class restoration or adaptive reuse for office space with modern conveniences. If the restoration work is under- way or proposed,then architectural plans acceptable to the Contracting Officer must be submitted as part of the offer. The building should be compatible with its surroundings. Overall the building should project a professional and aesthetically-pleasing appearance including an attractive front and entrance way. The building should have energy-efficient windows or glass areas consistent with the structural integrity of the building,unless not appropriate for intended use. The facade, downspouts,roof trim,and window casing are to be clean and in good condition. All construction and operation in new or existing buildings must be in accordance with the latest edition of the following codes and standards as applicable or local building and health codes that may be more stringent than those codes listed below: (A) Uniform Building Code(UBC) (B) Uniform Mechanical Code(UMC) (C) Uniform Plumbing Code(UPC) (D) National Electrical Code(NEC) (E) National Fire Codes by National Fire Protection Association(NFPA) (F) Southern Building Codes(SBC) (G) Buildings Officials&Code Administrators International,Inc.(BOCA) (H) Americans with Disabilities Accessibility Guidelines for Buildings and Facilities(ADAAG) (I) Uniform Federal Accessibility Standard(UFAS) (I) Federal Fire Safety Act of 1992 (K) Occupational Safety and Health Administration(OSHA) (L) California Code of Regulations(Title 24.8) (M) Uniform Fire Code (I) Building Energy Efficiency Standards,California Code of Regulations-Title 24,Part 6 (0) Appliance Standards,California Code of Regulations-Title 20 (P) ASHRAE(The American Society of Heating,Refrigerating,and Air Conditioning Engineers,Inc.) "Energy Conservation in New Building Design,including ASHRAE 90A,90B,and 90C." (Q) BISC/fIA--Building Telecommunications Wiring Standards INITIALS LESO & PAGE 8 SR GOVT 0 6 3 SECTION 4—SPECIAL REQUIREMENTS 4.1 GENERAL The space requirements described below are stated in terms of the quantity, quality, and location of the space designed in terms of the special requirements that differ or exceed the requirements described in all other sections. The facility shall have a sense of scale and"fitting" appropriate for the neighborhood and community while communicating a professional Forest Service image in a complimentary way. The building and grounds shall be inviting to the public yet convey a sympathetic understanding and respect for the forestry through the use of well-designed and crafted wood details. It is important that the public (community and visitors) and employees be comfortable with the facility as both a work place and public building. The character of the facility shall reflect responsible expenditure of taxpayers funds, be modest, yet reflective of the industry and the professionalism of the staff. Adjacent and surrounding properties shall have zoning and or land use consistent and compatible with the project. The site shall be visible to user public and be identifiable. Physical features of the site, e.g. size, shape, topography, drainage, etc., shall permit the economical and safe development of the property for its intended use and function. The character of the site and facility should be a setting that promotes the Forest Service image and concerns for the site and resource management. Administrative sites are to project the image of an environmentally aware, concerned, and professional land management organization. . The facility will meet current, legal requirements for a federal office building including but not limited to (a) American's with Accessibility Guidelines for Buildings and Facilities(ADAAG), (b) Uniform Federal Accessibility Standard (UFAS), (c) energy efficiency, (d) earthquake safety, and (e) location outside the 100 year flood plain. 4.2 REQUIRED PARKING SPACES 4.2.1 VISITOR PARKING—Visitor parking shall be reserved for the sole use of the public visiting the Forest Service Office.. Visitor parking should be near the main entrance and convenient to the public. These parking spaces shall be designed for easy ingress and egress. Not less than 15 visitor parking spaces shall be provided. Two (2)handicapped accessible visitor parking spaces in accordance with the City of Azusa off- street parking and loading regulations chapter 18.62. They shall be located closest to the nearest accessible entrance on an accessible route. Parking spaces for disabled persons shall comply with ADAAG and or UFAS requirements (generally at least 96 inches wide and an adjacent access aisle 60 inches wide minimum to allow for wheelchair lifts). 4.2.2 PARKING LIGHTING—All parking areas shall be lighted. Light levels shall have a minimum of '/z foot-candles at ground level and maximum to dusk and turn`off' as determined by a time clock. INITIALS & PAGE 9 LESSOR GOVT 064 r r 4.3 SPACE LAYOUT 4.3.1 LAYOUT AND FINISHES - A. The Forest Service space requirements are as follows: l.Occupiable Space Office—256 sq. ft. Work Area—64 sq. ft. Storage—64 sq. ft. 2. Rentable Space Public Space—484 sq. ft. Restroom—Public—Men's, 3 toilets/3 urinals—220 sq. ft. Restroom—Public—Women's, 3 toilets, 1 changing area—220 sq. ft.. Kiosk—Drive Thru area B. The Contractor shall provide architectural space allocation layout service. The Forest Service will meet with the Contractor after award to discuss the layout requirements. Finish selections will be delivered to the lessor within 30 days after samples are made available for selection. INITTALS Bc PAGE 10 LESSOR GOVT - 065 SECTION 5— GENERAL CLAUSES (Acquisition of Leasehold interests in Real Property) 5.1 DEFINITIONS (SECTION 10 - Sub-Section l) 5.1.1 552.2704 - DEFINITIONS (SEPT 1999) The following terms and phrases(except as otherwise expressly provided or unless the context otherwise requires)for all purposes of this lease shall have the respective meanings hereinafter specified: (a)"Commencement Date"means the first day of the term (b)"Contract"and"Contractor"means"Lease" and"Lessor,"respectively. (c)"Contracting Officer" means a person with the authority to enter into,administer,and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the Contracting Officer acting within the limits of their authority as delegated by the Contracting Officer. (d) "Delivery Date" means the date specified in or determined pursuant to the provisions of this lease for delivery of the premises to the Government,improved in accordance with the provisions of this lease and substantially complete,as such date may be modified in accordance with the provisions of this lease. (e) "Delivery Time" means the number of days provided by this lease for delivery of the premises to the Government,as such number may he modified in accordance with the provision so this lease. (f) "Excusable Delays"mean delays arising without the fault or negligence of Lessor and Lessor's subcontractors and suppliers at any tier, and shall include,without limitation:(1)acts of God or of the public enemy,(2)acts of the United States of America in either its sovereign or contractual capacity,(3)acts of another contractor in the performance of a contract with the Government,(4)fires,(5)floods,(6)epidemics,(7)quarantine restrictions,(8)strikes,(9)freight embargoes,(10)unusually severe weather,or(11)delays of subcontractors or suppliers at any tier arising from unforeseeable causes beyond the control and without the fault or negligence of both the Lessor and any such subcontractor or supplier. (g)"Lessor"means the sub-lessor if this lease is a sublease. (h) "Lessor shall provide"means the Lessor shall furnish and install at Lessor's expense. (i) "Notice" means written notice sent by certified or registered mail,Express Mail or Comparable service,or delivered by hand. Notice shall be effective on the date delivery is accepted or refused. 6) "Premises"means the space described in this lease. (k) "Substantially complete"and"substantial completion"means that the work,the common and other areas of the building, and all other things necessary for the Government's access to the premises and occupancy, possession,use and enjoyment thereof, as provided in this lease,have been completed or obtained,excepting only such minor matters as do not interfere with or materially diminish such access,occupancy,possession,use of enjoyment. (1) "Work"means all alterations,improvements,modifications,and other things required for the preparation or continued occupancy of the premises by the Goverment as specified in this lease. INITIALS .& PAGE 11 c LESSOR GOVT 066 , 1 5.1.2 RENTABLE SPACE (Sep 2000) Rentable space is the area for which a tenant is charged rent. It is determined by the building owner and may vary by city or by building within the same city. The rentable space may include a share of building support/common areas such as elevator lobbies, building corridors,and floor service areas. Floor service areas typically include restrooms,janitor rooms,telephone closets,electrical closets,and mechanical rooms. The rentable space does not include vertical building penetrations and their enclosing walls,such as stairs,elevator shafts,and vertical ducts. 5.1.3 ANSI/BOMA AREA SQUARE FEET (Sep 2000) (a) For the purposes of this solicitation,the Government recognizes the American National Standards InstituteBuilding Owners and Managers Association(ANSI/BOMA)international standard (Z65.1-1996) definition for Office Area,which means"the area where a tenant normally houses personnel and/or furniture,for which a measurement is to be computed." (b) ANSI/BOMA Office Area square feet shall be computed by measuring the area enclosed by the finished surface of the room side of corridors(corridors in place as well as those required by local codes and ordinances to provide an acceptable level of safety and/or to provide access to essential building elements)and other permanent walls,the dominant portion(refer to Z65.1)of building exterior walls,and the center of tenant-separating partitions. Where alcoves,recessed entrances,or similar deviation from the corridor are present,ANSI/BOMA Office Area square feet shall be computed as if the deviation were not present. 5.1.4 COMMON AREA FACTORS (Sep 2000) If applicable,the Offeror shall provide the Common Area Factor(a conversion factor(s)determined by the building owner and applied by the owner to the ANSI/BOMA Office Area square feet to determine the rentable square feet for the offered space). 5.2 GENERAL (SECTION 10- Sub-Section 2) 5.2.1 552.270-5 - SUBLETTING AND ASSIGNMENT (Sep 1999) The Government may sublet any part of the premises but shall not be relieved from any obligations under this lease by reason of any such subletting. The Government may at any time assign this lease,and be relieved from all obligations to Lessor under this lease excepting only unpaid rent and other liabilities,if any that have accred to the date of said assignment. Any assignment shall be subject to prior written consent of Lessor,which shall not be unreasonably withheld. 5.2.2 552.270-11 - SUCCESSORS BOUND (Sep 1999) This lease shall bind,and inure to the benefit of,the parties and their respective heirs,executors,administrators,successors,and assigns. 5.2.3 552.270-23 - SUBORDINATION,NONDISTURBANCE AND ATTORNMENT (SEPT 1999) (a) Lessor warrants that it holds such title to or other interest in the premises and other property as is necessary to the Government's access to the premises and full use and enjoyment thereof in accordance with the provisions of this lease. Government agrees,in consideration of the warranties and conditions set forth in this clause, that this lease is subject and subordinate to any and all recorded mortgages,deeds of trust and other liens now or hereafter existing or imposed upon the premises,and to any renewal, modification or extension thereof. It is the intention of the parties that this provision shall be self-operative and that no further instrument shall be required to effect the present or subsequent subordination of this lease. Goverment agrees, however,within twenty(20)business days next following the Contracting Officer's receipt of a written demand,to execute such instruments as Lessor may reasonably request to evidence further the subordination of this lease to any existing or future mortgage, deed of forst or other security interest pertaining to the premises,and to any water,sewer or access-easement necessary or desirable to serve the premises or adjoining property owned in whole or in part by Lessor, if such easement does not interfere with the full enjoyment of any right granted the Government under this lease. (b) No such subordination,to either existing or future mortgages,deeds of trust or other lien or security instrument shall INITIALS & PAGE 12 LESSOR GOVT ' 06"r operate to affect adversely any right of the Government under this lease so long as the Government is not in default under this lease. Lessor will include in any future mortgage,deed of trust or other security instrument to which this lease becomes subordinate,or in a separate nondisturbance agreement,a provision to the foregoing effect. Lessor warrants that the holders of all notes or other obligations secured by existing mortgages,deeds of trust or other security instruments have consented to the provisions of this clause, and agrees to provide true copies of all such consents`to the Contracting Officer promptly upon demand. (c) In the event of any sale of the premises or any portion thereof by foreclosure of the lien of any such mortgage, deed of trust or other security instrument,or the giving of a deed in lieu of foreclosure,the Government will be deemed to have attomed to any purchaser,purchasers,transferee or transferees of the premises or any portion thereof and its or their successors and assigns,and any such purchasers and transferees will be deemed to have assumed all obligations of the Lessor under this lease,so as to establish direct privity of estate and contract between Government and such purchasers or transferees,with the same force,effect and relative priority in time and right as if the lease had initially been entered into between such purchasers or transferees and the Government;provided, further,that the Contracting Officer and such purchasers or transferees shall,with reasonable promptness following any such sale or deed delivery in lieu of foreclosure,execute all such revisions to this lease,or other writings,as shall be necessary to document the foregoing relationship. (d) None of the foregoing provisions may be deemed or construed to imply a waiver of the Government's rights as a sovereign. 5.2.4 552.270-24- STATEMENT OF LEASE (Sep 1999) (a) The Contracting Officer will,within thirty(30)days next following the Contracting Officer's receipt of a joint written request from Lessor and a prospective lender or purchaser of the building,execute and deliver to Lessor a letter stating that the same is issued subject to the conditions stated in this clause and,if such is the case,that(1)the lease is in full force and effect;and(2)the date to which the rent and other charges have been paid in advance,if any;and(3)whether any notice of default has been issued. (b) Letters issued pursuant to this clause are subject to the following conditions: (1) That they are based solely upon a reasonably diligent review of the Contracting Officer's lease file as of the date of issuance; (2) That the Government shall not be held liable because of any defect in or condition of the premises or building; (3) That the Contracting Officer does not warrant or represent that the premises or building comply with applicable Federal,State and local law;and (4) That the Lessor,and each prospective lender and purchaser are deemed to have constructive notice of such facts as would be ascertainable by reasonable prepurchase and precommitment inspection of the Premises and Building and by inquiry to appropriate Federal,State and local Government officials. 5.2.5 552.270-25 -SUBSTITUTION OF TENANT AGENCY (Sep 1999) The Government may,at any time and from time to time,substitute any Government agency or agencies for the Government agency or agencies,if any,named in the lease. 5.2.6 552.270-26 -NO WAIVER (Sep 1999) No failure by either party to insist upon the strict performance of any provision of this lease or to exercise any right or remedy consequent upon a breach thereof,and no acceptance of full or partial rent or other performance by either party during the continuance of any such breach shall constitute a waiver of any such breach of such provision. 5.2.7 552.270-27-INTEGRATED AGREEMENT (Sep 1999) This Lease, upon execution,contains the entire agreement of the parties and no prior written or oral agreement,express or implied,shall be admissible to contradict the provisions of the Lease. 5.2.8 552.270-28-MUTUALITY OF OBLIGATION (Sep 1999) INITIALS & PAGE 13 LESSOR GOVT 06E The obligations and covenants of the Lessor,and the Government's obligation to pay rent and other Government obligations and covenants,arising under or related to this Lease,are interdependent. The Government may,upon issuance of and delivery to Lessor of a final decision asserting a claim against Lessor, set off such claim,in whole or in part, as against any payment or payments then or thereafter due the Lessor under this lease. No setoff pursuant to this clause shall constitute a breach by the Government of this lease. 5.2.9 FEDERAL, STATE,AND LOCAL TAXES (FAR 52.229-3)(Jan 1991) (a) "Contract date,"as used in this clause,means the date set for bid opening or, if this is a negotiated contract or a modification,the effective date of this contract or modification. "All applicable Federal, State,and local taxes and duties," as used in this clause,means all taxes and duties,in effect on the contract date,that the taxing authority is imposing and collecting on the transactions or property covered by this contract. "After-imposed Federal tax,"as used in this clause,means any new or increased Federal excise tax or duty,or tax that was exempted or excluded on the contract date but whose exemption was later revoked or reduced during the contract period,on the transactions or property covered by this contract that the Contractor is required to pay or bear as the result of legislative,judicial, or administrative action taking effect after the contract date. It does not include social security tax or other employment taxes. "After-relieved Federal tax,"as used in this clause,means any amount of Federal excise tax or duty,except social security or other employment taxes,that would otherwise have been payable on the transactions or property covered by this contract, but which the Contractor is not required to pay or bear,or for which the Contractor obtains a refund or drawback,as the result of legislative,judicial,or administrative action taking effect after the contract date. (b)The contract price includes all applicable Federal,State,and local taxes and duties. (c)The contract price shall be increased by the amount of any after-imposed Federal tax, provided the Contractor warrants in writing that no amount for such newly imposed Federal excise tax or duty or rate increase was included in the contract price,as a contingency reserve or otherwise. (d)The contract price shall be decreased by the amount of any after-relieved Federal tax. (e)The contract price shall be decreased by the amount of any Federal excise tax or duty,except social security or other employment taxes,that the Contractor is required to pay or bear,or does not obtain a refund of,through the Contractor's fault, negligence,or failure to follow instructions of the Contracting Officer. (f)No adjustment shall be made in the contract price under this clause unless the amount of the adjustment exceeds$250. (g)The Contractor shall promptly notify the Contracting Officer of all matters relating to any Federal excise tax or duty that reasonably may be expected to result in either an increase or decrease in the contract price and shall take appropriate action as the Contracting Officer directs. (h) The Government shall,without liability,furnish evidence appropriate to establish exemption from any Federal,State,or local tax when the Contractor requests such evidence and a reasonable basis exists to sustain the exemption. 5.2.10 LEASE RECORDING It will be the responsibility of the successful offeror(Lessor)to record on the public record in the courthouse of the county in which the leased premises are located,the Standard Form 2,(SF-2)portion of the lease,and to famish proof of such recording to the Contracting Officer within 30 days after award. Associated cost will be at the Lessor's expense. 5.2.11 OWNERSHIP CHANGES, CHANGE OF NAME INITIALS & PAGE 14 LESSOR GOVT 069 d (a) The Contractor shall promptly notify the Contracting Officer in writing, when the Contractor becomes aware that a change in ownership of the subject leased real property has occurred,or is certain to occur;or when a legal change-of-name of the Contractor has occurred,or is certain to occur. (b) When an individual or furtt performing Government contracts wishes the Government to recognize(1)a Successor in interest to these contracts,or(2)a name change,the contractor shall submit a written request to the Contracting Officer. (c) Federal Law(41 U.S.C. 15)prohibits transfer of Government contracts and leases. However,the Government may,in its interest,recognize a third party as the successor in interest to a lease when the third party's interest arises out of the transfer of the entire portion of the assets involved in performing the contract(lease). An example would include but not be limited to sale of the assets with a provision for the buyer to assume all liabilities and responsibilities involved in performing the lease. (d) When it is in the Government's interest not to concur in the transfer of a contract from one company to another company, the original contractor remains under contractual obligation to the Government;and the contract may be terminated for reasons of default, should the original contractor not perform (e) When considering whether to recognize a third party as a successor in interest to Government contracts,the Contracting Officer shall identify and evaluate any significant organizational conflicts of interest in accordance with 48 CFR subpart 9.5. (f) When a contractor asks the Government to recognize a successor in interest,the contractor shall submit to the Contracting Officer three signed copies of the proposed Assignment and Assumption-Novation Agreement(a suitable form is available from the Contracting Officer),and one copy each,as applicable,of the following: (1)The document describing the proposed transaction,e.g.,purchase/sale agreement or memorandum of understanding,etc. (2) A list of all affected contracts between the transferor and the Government as of the date of sale or transfer of assets,showing the pertinent information for each. (3) Evidence of the transferee's capability to perform (4) Any other relevant information requested by the Contracting Officer. 5.2.12 552.203-71 RESTRICTION ON ADVERTISING (sep 1999) The Contractor shall not refer to this contract in commercial advertising or similar promotions in such a manner as to state or imply that the product or service provided is endorsed or preferred by the White House,the Executive Office of the President,or any other element of the Federal Govemment,or is considered by these entities to be superior to other products or services. Any advertisement by the Contractor,including price-off coupons,that refers to a military resale activity shall contain the following statement: "This advertisement is neither paid for nor sponsored,in whole or in part,by any element of the United States Government." 5.2.13 INDEMNIFICATION When the requirements of the Federal Tort Claims Act,28 U.S.C.2671 et seq.,are met,said Act, on the effective date of this lease,provides that the Government is liable for money damages for injury or loss of property or personal injury or death caused by the negligence or wrongful act or omission of any employee of the Government while acting within the scope or office or employment. 5.2.14 LEGAL FEES In the event of any action or suit by a party hereto against the other party by reason of a breach of this lease,recovery from the other party shall all costs and expenses of suit,including reasonable attorneys' fees,shall be based on applicable law,including the Equal Access to Justice Act.(5 U.S.C.A.Section 504). 5.3 P E R F O R MA N C E (SECTION 10- Sub-Section 3) INITIALS & PAGE 15 LESSOR GOVT 070 5.3.1 552.270-17- DELIVERY AND CONDITION (Sep 1999) (a) Unless the Government elects to have the space occupied in increments,the space must be delivered ready for occupancy as a complete unit. The Government reserves the right to determine when the space is substantially complete. (b) If the premises do not in every respect comply with the provisions of this lease the Contracting Officer may,in accordance with the Failure in Performance clause of this lease,elect to reduce the rent payments. 5.3.2 552.270-18 - DEFAULT IN DELIVERY- TIME EXTENSIONS (Sep 1999) (a) With respect to Lessor's obligation to deliver the premises substantially complete by the delivery date,time is of the essence. If the Lessor fails to work diligently to ensure its substantial completion by the delivery date or fails to substantially complete the work by such date,the Government may by notice to the Lessor terminate this lease. Such termination is effective when received by Lessor. The Lessor and the Lessor's sureties,if any,are jointly and severally liable for any damages to the Government resulting from such termination,as provided in this clause. The Government is entitled to the following damages: (1) The Government's aggregate rent, estimated real estate tax,and operating cost adjustments for the firm term and all option terms of its replacement lease or leases,in excess of the aggregate rent and estimated real estate tax and operating cost adjustments for the term; If the Government procures replacement premises for a term(including all option terms)in excess of the term,the Lessor is not liable for excess Government rent or adjustments during such excess lease term (2) All administrative and other costs the Government incurs in procuring a replacement lease or leases. (3) Other,additional relief provided for in this lease,at law, or in equity. (b) Damages to which the Government is entided under this clause are due and payable thirty(30)days following the date Lessor receives notice from the Contracting Officer specifying such damages. (c) Delivery by Lessor of less than the minimum ANSUBOMA Usable square footage required by this lease shall in no event be construed as substantial completion,except as the Contracting Officer permits. (d) The Government shall not terminate this lease under this clause nor charge the Lessor with damages under this clause,if (1)the delay in substantially completing the work arises from excusable delays,and(2)the Lessor within 10 days from the beginning of any such delay(unless extended in writing by the Contracting Officer)provides notice to the Contracting Officer of the causes of delay. The Contracting Officer shall ascertain the facts and the extent of delay. If the facts warrant,the Contracting Officer shall extend the delivery date,to the extent of such delay at no additional costs to the Government. A time extension is the sole remedy of the Lessor. (e) Without limiting its ability to seek other remedies(either in law or in equity)which may be available,Lessor may terminate this Lease,at its option,upon the Government's breach of any of its obligations under this Lease and falure to cure such breach within thirty(30)days after receipt of written notice from Lessor or,if such cure cannot be completed within thirty(30)days, the failure of the Government to commence such cure within thirty(30)days after its receipt of written notice and thereafter to diligently prosecute such cure to completion. 5.3.3 552.270-19 - PROGRESSIVE OCCUPANCY (Sep 1999) The Government shall have the right to elect to occupy the space in partial increments prior to the substantial completion of the entire leased premises,and the Lessor agrees to schedule its work so as to deliver the space incrementally as elected by the Government. The Government shall pay rent commencing with the fust business day following substantial completion of the entire leased premise unless the Government has elected to occupy the leased premises incrementally. In case of incremental occupancy,the Government shall pay rent pro rata upon the fust business day following substantial completion of each incremental unit. Rental payments shall become due on the fust workday of the month following the month in which an increment of space is substantially complete,except that should an increment of space be substantially completed after the fifteenth day of the month, the payment due date will be the fust workday of the second month following the month in which it was substantially complete. The commencement date of the firm lease term will be a complete determined from all rent commencement dates. 5.3.4 552.270-21 - EFFECT OF ACCEPTANCE AND OCCUPANCY (Sep 1999) Neither the Government's acceptance of the premises for occupancy,nor the Government's occupancy thereof,shall be wrnALS & PAGE 16 LESSOR GOVT r� 0'71 m c. construed as a waiver of any requirement of or right of the Government under this Lease,or as otherwise prejudicing the Government with respect to any such requirement or right. 5.3.5 552.270-6-MAINTENANCE OF BUILDING AND PREMISES -RIGHT OF ENTRY (Sep 1999) Except in case of damage arising out of the willful act or negligence of a Government employee,Lessor shall maintain the premises,including the building and all equipment,fixtures,and appurtenances furnished by the lessor under this lease,in good repair and condition so that they are suitable in appearance and capable of supplying such heat,air conditioning,light,ventilation,access and other things to the premises,without reasonably preventable or recurring disruption, as is required for the Government's access to,occupancy,possession,use and enjoyment of the premises as provided in this lease. For the purpose of so maintaining the premises,the Lessor may at reasonable times enter the premises with the approval of the authorized Government representative in charge. I , . In accordance with the provisions of this Lease,the Government will maintain the premises in good condition and repair and in a clean and sanitary manner during the term of this Lease and any renewal thereof The Government shall not cause or permit the premises to be used in any way which constitutes a violation of any law,rule or regulation,which annoys or interferes with the rights of neighboring property owners,or which constitutes a nuisance or waste. 5.3.6 552.270-10- FAILURE IN PERFORMANCE (Sep 1999) The covenant to pay rent and the covenant to provide any service,utility,maintenance,or repair required under this lease are interdependent. In the event of any failure by the Lessor to provide any service, utility,maintenance,repair or replacement required under this lease the Government may,by contract or otherwise,perform the requirement and deduct from any payment or payments under this lease,then or thereafter due,the resulting cost to the Government,including all administrative costs. If the Government elects to perform any such requirement,the Government and each of its contractors shall be entitled to access to any and all areas of the building,access to which is necessary to perform any such requirement, and the Lessor shall afford and facilitate such access. Alternatively, the Government may deduct from any payments under this lease,then or thereafter due,an amount which reflects the reduced value of the contract requirement not performed. No deduction from rent pursuant to this clause shall constitute a default by the Government under this lease. These remedies are not exclusive and are in addition to any other remedies which may be available under this lease or at law. 5.3.7 552.270-22-DEFAULT BY LESSOR DURING THE TERM (Sep 1999) (a) Each of the following shall constitute a default by Lessor under this lease: (1) Failure to maintain,repair,operate or service the premises as and when specified in this lease,or failure to perform any other requirement of this lease as and when required provided any such failure shall remain uncured for a period of thirty (30)days next following Lessor's receipt of notice thereof from the Contracting Officer or an authorized representative. (2) Repeated and unexcused failure by Lessor to comply with one or more requirements of this lease shall constitute a default notwithstanding that one or all such failures shall have been timely cured pursuant to this clause. (b) If a default occurs,the Government may,by notice to Lessor,terminate this lease for default and if so terminated,the Government shall be entitled to the damages specified in the Default in Delivery-Time Extensions clause. 5.3.8 552.270-7- FIRE AND CASUALTY DAMAGE (Sep 1999) If the entire premises are destroyed by fire or other casualty,this lease will immediately terminate. In case of partial destruction or damage,so as to render the premises untenantable,as determined by the Government,the Government may terminate the lease by giving written notice to the Lessor within 15 calendar days of the fire or other casualty;if so terminated,no rent will accrue to the Lessor after such partial destruction or damage;and if not so terminated, the rent will be reduced proportionately by supplemental agreement hereto effective from the date of such partial destruction or damage. Nothing in this lease shall be construed as relieving Lessor from liability for damage to or destruction of property of the United States of America caused by the willful or negligent act or omission of Lessor. 5.3.9 552.270-8- COMPLIANCE WITH APPLICABLE LAW (Sep 1999) INITIALS & - PAGE 17 LESSOR GOVT 072 2 I i Lessor shall comply with all Federal, 'state and local laws applicable to the Lessor as owner or lessor,or both,of the building or premises,including,without limitation, laws applicable to the construction,ownership,alteration or operation of both or either thereof,and will obtain all necessary permits, licenses and similar items at Lessor's expense. The Government will comply with all Federal, state and local laws applicable to and enforceable against it as a tenant under this lease;provided that nothing in this lease shall be construed as a waiver of any sovereign immunity of the Government. This lease shall be governed by Federal law. 5.3.10 552.270-12 - ALTERATIONS (Sep 1999) The Government shall have the right during the existence of this lease to make alterations,attach fixtures,and erect structures or signs in or upon the premises hereby leased,which fixtures,additions or structures so placed in,on,upon,or attached to the said premises shall be and remain the property of the Government and may be removed or otherwise disposed of by the Government. If the lease contemplates that the Government is the sole occupant of the building,for purposes of this clause,the leased premises include the land on which the building is sited and the building itself. Otherwise,the Government shall have the right to tie into or make any physical connection with any structure located on the property as is reasonably necessary for appropriate utilization of the leased space. 5.3.11 SUBSEQUENT TENANT IMPROVEMENTS $100,000 OR LESS (Sep 2000) (a) The Lessor may be requested to provide alterations during the term of the lease. Alterations will be ordered by issuance of GSA Form 276, Supplemental Lease Agreement,GSA Form 300,Order for Supplies or Services,or a Tenant Agency-approved _ form The two clauses from GSA Form 3517,General Clauses, 552.232.25,Prompt Payment(Deviation FAR 52.232-25),and 552.232.70,Invoice Requirements,apply to orders for alterations. All orders are subject to the terms and conditions of this lease. (b) Orders may be placed by the 1)Contracting Officer,2)Government's Building Manager,or 3)Tenant Agency officials when specifically authorized to do so by the Contracting Officer. The Contracting Officer will provide the Lessor with a list to Tenant Agency officials authorized to place orders and will specify any limitations on the authority delegated to Tenant Agency officials. The Tenant Agency officials are not authorized to deal with the Lessor on any other matters. (c) Payments for alterations ordered by the Tenant Agency will be made directly by the Tenant Agency placing the order. 5.3.12 552.270-29 - ACCEPTANCE OF SPACE (Sep 1999) (a) When the Lessor has completed all alterations, improvements, and repairs necessary to meet the requirements of the lease, the Lessor shall notify the Contracting Officer. The Contracting Officer or designated representative shall promptly inspect the space. (b) The Government will accept the space and the lease term will begin after determining that the space is substantially complete and contains the required occupiable square footage as indicated in the paragraph of this solicitation entitled"Amount and Type of Space." 5.4. INSPECTION (SECTION 10 - Sub-Section 4) 0 5.4.1 552.270-9 - INSPECTION-RIGHT OF ENTRY (Sep 1999) (a) At any time and from time to time after receipt of an offer(until the same has been duly withdrawn or rejected), after acceptance thereof and during the term,the agents,employees and contractors of the Government may,upon reasonable prior notice to Offeror or Lessor,enter upon the offered premises or the premises,and all other areas of the building access to which is necessary to accomplish the purposes of entry,to determine the potential or actual compliance by the Offeror or Lessor with the requirements of the solicitation or this lease,which purposes shall include,but not be limited to: (1)inspecting,sampling and analyzing suspected asbestos-containing materials and air monitoring for asbestos fibers;(2)inspecting the heating,ventilation and air conditioning system,maintenance records,and mechanical rooms for the offered premises.or the premises; (3) inspecting for any leaks,spills,or other potentially hazardous conditions which may involve tenant exposure to hazardous or toxic substances;and(4)inspecting for any current or past hazardous waste operations,to ensure that appropriate mitigative actions were taken to alleviate any environmentally unsound activities in accordance with Federal,State and local law. INITIALS & PAGE 18 LESSOR GOVT 073 (b) Nothing in this clause shall be construed to create a Government duty to inspect for toxic materials or to impose a higher standard of care on the Government than on other lessees. The purpose of this clause is to promote the ease with which the Government may inspect the building. Nothing in this clause shall act to relieve the Lessor of any duty to inspect or liability which might arise as a result of Lessor's failure to inspect for or correct a hazardous condition. 5.4.2 CONSTRUCTION INSPECTIONS (a) Construction inspections will be made periodically by the Contracting Officer,and/or designated technical representatives,to review compliance with the solicitation requirements and the final working drawings. (b) Periodic reviews,tests,and inspections by the Government are not to be interpreted as resulting in any approval of the Lessor's apparent progress toward meeting the Government's objectives,but are intended to discover any information which the Contracting Officer may be able to call to the Lessor's attention to prevent costly misdirection of effort. The Lessor shall remain completely responsible for designing,constructing,operating,and maintaining the building in full accordance with the requirements of this solicitation. 5.4.3 CONSTRUCTION DRAWINGS REVIEW Provide construction drawings(Auto Cad drawings are preferred)at 20,60,90 and 100%completion for review by the Government. If any changes are required the Lessor will be notified within 14 days of receipt of these drawings. These drawings must meet professional standards and/or requirements outlined elsewhere in this SFO. 5.4.4 CERTIFICATE OF OCCUPANCY All construction work required to provide occupancy for the Government shall comply with permit requirements of the authonty(ies)having jurisdiction. Required permits shall be secured by the Lessor. Certification of completion and acceptance or certificate of occupancy of the authority(ies)having jurisdiction, shall be submitted to the CO prior to acceptance by the Government. 5.5 PAYMENT (SECTION 10 - Sub-Section 5) 5.5.1 552.232-75-PROMPT PAYMENT (Sep 1999) The Government will make payments under the terms and conditions specified in this clause. Payment shall be considered as being made on the day a check is dated or an electronic funds transfer is made. All days referred to in this clause are calendar days, unless otherwise specified. (a) Payment due date. (1) Rental payments. Rent shall be paid monthly in arrears and will be due on the first workday of each month, and only as provided for by the lease. (i) When the date for commencement of rent falls on the 15th day of the month or earlier,the initial monthly rental payment under this contract shall become due on the fust workday of the month following the month in which the commencement of the rent is effective. (ii) When the date for commencement of rent falls after the 15th day of the month,the initial monthly rental payment under this contract shall become due on the first workday of the second month following the month in which the commencement of the rent is effective. (2) Other payments. The due date for making payments other than rent shall be the later of the following two events: (i) The 30th day after the designated billing office has received a proper invoice from the Contractor. (ii) The 30th day after Government acceptance of the work or service. However,if the designated billing office fails to annotate the invoice with the actual date of receipt,the invoice payment due date shall be deemed to be the 30th day after the Contractor's invoice is dated,provided a proper invoice is received and there is no disagreement over quantity,quality,or Contractor compliance with contract requirements. (b) Invoice and inspection requirements for payments other than rent. INITIALS & PAGE 19 LESSOR GOVT 074 c (1) The Contractor shall prepare and submit an invoice to the designated billing office after completion of the work. A proper invoice shall include the following items: (i) Names and address of the Contractor. (ii) Invoice date. (iii) Lease number. (iv) Government's order number or other authorization. (v) Description,price,and quantity of work or services delivered. (vi) Name and address of Contractor official to whom payment is to be sent(must be the same as that in the remittance address in the lease or the order.) (vii) Name(where practicable), title,phone number,and mailing address of person to be notified in the event of a defective invoice. (2) The Government will inspect and determine the acceptability of the work performed or services delivered within 7 days after the receipt of a proper invoice or notification of completion of the work or services unless a different period is specified at the time the order is placed. If actual acceptance occurs later,for the purpose of determining the payment due date and calculation of interest, acceptance will be deemed to occur on the last day of the 7 day inspection period. If the work or service is rejected for failure to conform to the technical requirements of the contract,the 7 days will be counted beginning with receipt of a new invoice or notification. In either case,the Contractor is not entitled to any payment or interest unless actual acceptance by the Government occurs. (c) Interest Penalty. (1) An interest penalty shall be paid automatically by the Government,without request from the Contractor,if payment is not made by the due date. (2) The interest penalty shall be at the rate established by the Secretary of the Treasury under Section 12 of the Contract Disputes Act of 1978(41 U.S.C. 611)that is in effect on the day after the due date. This rate is referred to as the "Renegotiation Board Interest Rate," and it is published in the Federal Register semiannually on or about January 1 and July 1. The interest penalty shall accrue daily on the payment amount approved by the Government and be compounded in 30-day increments inclusive from the first day after the due date through the payment date. (3) Interest penalties will not continue to accrue after the filing of a claim for such penalties under the clause at 52.233-I,Disputes,or for more tlian 1 year. Interest rate penalties of less than$1.00 need not be paid. (4) Interest penalties are not required on payment delays due to disagreement between the Government and Contractor over the payment amount or other issues involving contract compliance or on amounts temporarily withheld or retained in accordance with the terms of the contract. Claims involving disputes,and any interest that may be payable,will be resolved in accordance with the clause at 52.233-1,Disputes. 5.5.2 552.232-76- ELECTRONIC FUNDS TRANSFER PAYMENT (Mar 2000) (a) The Government will make payments under this lease by electronic funds transfer(EFT). The Lessor must,no later than 30 days before the first payment: (1) Designate a financial institution for receipt of EFT payments. (2) Submit this designation to the Contracting Officer or other Government official,as directed. (b) The Lessor must provide the following information: (1) The American Bankers Association 9-digit identifying number for Automated Clearing House(ACH)transfers of the financing institution receiving payment if the institution has access to the Federal Reserve Communications System. (2) Number of account to which funds are to be deposited. (3) Type of depositor account("C"for checking,"S"for savings). (4) If the Lessor is a new enrollee to the EFT system,the Lessor must complete and submit a"Payment Information' Form," SF 3881,before payment can be processed. (c) If the Lessor,during the performance of this contract,elects to designate a different financial institution for the receipt of any payment,the appropriate Government official must receive notice of such change and the required information specified above no later than 30 days before the date such change is to become effective. (d) The documents fimiishing the information required in this clause must be dated and contain the: INITIALS .& PAGE 20 LESSOR GOVT 075 r , (1)Signature,title,and telephone number of the Lessor or the Lessor's authorized representative. (2) Lessors'name. (3) Lease number. (e) Lessor's failure to properly designate a financial institution or to provide appropriate payee bank account information may delay payments of amounts otherwise properly due. 5.5.3 552.232-70-INVOICE REQUIREMENTS (Sep 1999) (a) Invoices shall be submitted in an original only,unless otherwise specified,to the designated billing office specified in this contract or order. (b) Invoices must include the Accounting Control Transaction(ACT)number provided below or on the order. ACT Number(to be supplied on individual orders.) (c) In addition to the requirements for a proper invoice specified in the Prompt Payment clause on this contract or order,the following information or documentation must be submitted with each invoice: 5.5.4 552.270-20-PAYMENT (Sep 1999) (a) When space is offered and accepted,the Usable square footage delivered will be confirmed by either: (1) The Governments measurement of plans submitted by the successful Offeror as approved by the Goverment,and an inspection of the space to verify that the delivered space conforms with such plans. (2) A mutual on-site measurement of the space if the Contracting Officer determines it necessary. (b) The Government will not pay for space in excess of the amount of Usable square footage stated in the lease. (c) If the amount of Usable square footage delivered is less than the amount agreed to in the lease,the lease will be modified to reflect the amount of occupiable space delivered and the annual rental will be adjusted as follows: Usable square feet(USF)not delivered multiplied by one plus the common area factor(CAF),multiplied by the rate per rentable square foot(RSF).That is: USF X(1 +CAF)X Rate per RSF=Reduction in Annual Rent. 5.5.5 PAYMENT DUE DATE (Additional clause) Payments under this lease contract will be due on the 5th workday of the month after the end of the period for which rent payment is due for acceptable performance in providing the lease premises. ' (a) Tax Escalator Clause Adjustment(if any)-Payment will be made in lump sum and will become due the 5th workday of the second month following receipt of and acceptance by the Goverment of paid tax receipts. (b) Utility Cost Escalator Clause Adjustment(if any)-Rental adjustments become effective on the anniversary date of the lease providing the lessor has submitted proper documentation as required under the Operating Escalator Clause. Payment of the adjustment rate becomes due on the 5th workday of the second month following acceptance and approval by the Government of documentation submitted by the lessor. (c) Date of Payment-The date of the check issued in payment shall be considered to be the date payment is made. 5.6 STANDARDS OF CONDUCT (SECTION 10-'Sub-Section 6) 5.6.1 552.203-5-COVENANT AGAINST CONTINGENT FEES (Feb 1990) (Applies to leases which exceed$100,000.) INITIALS & PAGE 21 LESSOR GOVT 076 (a) The Contractor warrants that no person or agency has been employed or retained to solicit or obtain this contract upon an agreement or understanding for a contingent fee,except a bona fide employee or agency. For breach or violation of this warrant, the Goverment shall have the right to annul this contract without liability or,in its discretion,to deduct from the contract price or consideration,or otherwise recover the full amount of the contingent fee. (b) "Bona fide agency," as used in this clause,means an established commercial or selling agency(including licensed real estate agents or brokers),maintained by a Contractor for the purpose of securing business,that neither exerts nor proposes to exert improper influence to solicit or obtain Goverment contracts nor holds itself out as being able to obtain any Goverment contract or contracts through improper influence. "Bona fide employee," as used in this clause,means a person, employed by a Contractor and subject to the Contractor's supervision and control as to time,place,and manner of performance, who neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds out as being able to obtain any Government contract or contracts through improper influence. "Contingent fee," as used in this clause,means any commission,percentage,brokerage,or other fee that is contingent upon the success that a person or concern has in securing a Government contract. "Improper influence," as used in this clause,means any influence that induces or tends to induce a Government employee or officer to give consideration or to act regarding a Goverment contract on any basis other than the merits of the matter. 5.7 A D J U S TME N T S (SECTION 10-Sub-Section 7) 5.7.1 552.203-70- PRICE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY (SEPT 1999) (Applicable to leases over$100,00) (a) If the head of the contracting activity(HCA)or his or her designee determines that there was a violation of subsection 27(a) of the Office of Federal Procurement Policy Act,as amended(41 U.S.C.423),as implemented in the Federal Acquisition Regulation,the Goverment,at its election,may-- (1) Reduce the monthly rental under this lease by 5 percent of the amount of the rental for each month of the remaining term of the lease,including any option periods,and recover 5 percent of the rental already paid; (2) Reduce payments for alterations not included in monthly rental payments by 5 percent of the amount of the alterations agreement; or (3) Reduce the payments for violations by a Lessor's subcontractor by an amount not to exceed the amount of profit or fee reflected in the subcontract at the time the subcontract was placed. (b) Prior to making a determination as set forth above,the HCA or designee shall provide to the Lessor a written notice of the action being considered and the basis therefor. The Lessor shall have a period determined by the agency head or designee,but not less than 30 calendar days after receipt of such notice,to submit in person,in writing,or through a representative,information and ` argument in opposition to the proposed reduction. The agency head or designee may,upon good cause shown,determine to deduct less than the above amounts from payments. (c) The rights and remedies of the Goverment specified herein are not exclusive,and are in addition to any other rights and remedies provided by law or under this lease. 5.7.2 552.270-13 -PROPOSALS FOR ADJUSTMENT (SEPT 1999) (a) The Contracting Officer may, from time to time during the term of this lease,require changes to be made in the work or services to be performed and in the terms or conditions of this lease. Such changes will be required under the Changes clause. (b) If the Contracting Officer makes a change within the general scope of the lease,the Lessor shall submit,in a timely manner,an itemized cost proposal for the work to be accomplished or services to be performed when the cost exceeds$100,000. The proposal,including all subcontractor work,will contain at least the following details-- (1) Material quantities and unit costs; INITIALS & PAGE 22 LESSOR GOVT (2) Labor costs(identified with specific item or material to be placed or operation to be performed; (3) Equipment costs; (4) Worker's compensation and public liability insurance; (5) Overhead; i (6) Profit; and (7) Employment taxes under FICA and FUTA. (c) The following Federal Acquisition Regulation(FAR)provisions also apply to all proposals exceeding$500,000 in cost-- (1) The Lessor shall provide cost or pricing data including subcontractor cost or pricing data(48 CFR 15.403-4); and (2) The Lessor's representative,all Contractors,and subcontractors whose portion of the work exceeds$500,000 must sign and return the"Certificate of Current Cost or Pricing Data" (48 CFR 15.406-2). (d) Lessors shall also refer to 48 CFR Part 31,Contract Cost Principles,for information on which costs are allowable, reasonable,and allocable in Government work. 5.7.3 552.270-14 - CHANGES (SEPT 1999) (a) The Contracting Officer may at any time,by written order,make changes within the general scope of this lease in any one or more of the following: (1) Specifications(including drawings and designs). (2) Work or services. (3) Facilities or space layout. (4) Amount of space,provided the Lessor consents to the change. (b) If any such change causes an increase or decrease in Lessor's cost of or the time required for performance under this lease,whether or not changed by the order,the Contracting Officer shall modify this lease to provide for one or more of the following: (1) A modification of the delivery date. (2) An equitable adjustment in the rental rate. (3) A lump sum equitable adjustment. (4) An equitable adjustment of the annual operating costs per usable square foot specified in this lease. (c) The Lessor shall assert its right to an adjustment under this clause within 30 days from the date of receipt of the change order and shall submit a proposal for adjustment. Failure to agree to any adjustment shall be a dispute under the Disputes clause. However,nothing in this clause shall excuse the lessor from proceeding with the change as directed. (d) Absent such written change order,the Government shall not be liable to Lessor under this clause. 5.8 AUDITS (SECTION 10 - Sub-Section 8) r 5.8.1 552.215-70-EXANIINATION OF RECORDS BY GSA (FEB 1996) The Contractor agrees that the Administrator of General Services,or any duly authorized representative shall,until the expiration of 3 years after final payment under this contract,or of the time periods for the particular records specified in Subpart 4.7 of the Federal Acquisition Regulation(48 CFR 4.7),whichever expires earlier,have access to and the right to examine any books, documents,papers,and records of the Contractor involving transactions related to this contract or compliance with any clauses thereunder. The Contractor further agrees to include in all its subcontracts hereunder a provision to the effect that the subcontractor agrees that the Administrator of General Services,or any duly authorized representatives shall,until the expiration of 3 years after final payment under the subcontract,or of the time periods for the particular fecords specified in Subpart 4.7 of the Federal Acquisition Regulation(48 CFR 4.7),whichever expires earlier,have access to and the right to examine any books,documents, papers,and records of such subcontractor,involving transactions related to the subcontract or compliance with any clauses thereunder. The term"subcontract"as used in this clause excludes (a) purchase orders not exceeding $100,000 and(b)subcontracts or purchase orders for public utility services at rates established for uniform applicability to the general public. INITIALS & PAGE 23 LESSOR GOVT 078 5.9 D I S P U T E S (SECTION 9 - Sub-Section 9) 5.9.1 52.233-1 - DISPUTES (JUL 2002) (a) This contract is subject to the Contract Disputes Act of 1978, as amended(41 U.S.C. 601-613). (b)Except as provided in the Act,all disputes arising under or relating to this contract shall be resolved under this clause. (c)"Claim," as used in this clause,means a written demand or written assertion by one of the contracting parties seeking, as a matter of right,the payment of money in a sum certain,the adjustment or interpretation of contract terms,or other relief arising under or relating to this contract.However,a written demand or written assertion by the Contractor seeking the payment of money exceeding $100,000 is not a claim under the Act until certified.A voucher,invoice,or other routine request for payment that is not in dispute when submitted is not a claim under the Act.The submission may be converted to a claim under the Act,by complying with the submission and certification requirements of this clause,if it is disputed either as to liability or amount or is not acted upon in a reasonable time. (d) (1)A claim by the Contractor shall be made in writing and,unless otherwise stated in this contract,submitted within 6 years after accrual of the claim to the Contracting Officer for a written decision.A claim by the Government against the Contractor shall be subject to a written decision by the Contracting Officer. (2) (i)The Contractor shall provide the certification specified in paragraph(d)(2)(iii)of this clause when submitting any claim exceeding$100,000. (ii)The certification requirement does not apply to issues in controversy that have not been submitted as all or part of a claim (iii)The certification shall state as follows: "I certify that the claim is made in good faith;that the supporting data are accurate and complete to the best of my knowledge and belief;that the amount requested accurately reflects the contract adjustment for which the Contractor believes the Government is liable;and that I am duly authorized to certify the claim on behalf of the Contractor." (3)The certification may be executed by any person duly authorized to bind the Contractor with respect to the claim. (e)For Contractor claims of$100,000 or less,the Contracting Officer must,if requested in writing by the Contractor,render a decision within 60 days of the request.For Contractor-certified claims over$100,000,the Contracting Officer must,within 60 days, decide the claim or notify the Contractor of the date by which the decision will be made. (f)The Contracting Officer's decision shall be final unless the Contractor appeals or files a suit as provided in the Act. (g)If the claim by the Contractor is submitted to the Contracting Officer or a claim by the Government is presented to the Contractor,the parties,by mutual consent,may agree to use alternative dispute resolution(ADR). If the Contractor refuses an offer for ADR,the Contractor shall inform the Contracting Officer,in writing,of the Contractors specific reasons for rejecting the offer. (h)The Government shall pay interest on the amount found due and unpaid from(1)the date that the Contracting Officer receives the claim(certified,if required);or(2)the date that payment otherwise would be due,if that date is later,until the date of payment.With regard to claims having defective certifications,as defined in FAR 33.201,interest shall be paid from the date that the Contracting Officer initially receives the claim Simple interest on claims shall be paid at the rate,fixed by the Secretary.of the Treasury as provided in the Act,which is applicable to the period during which the Contracting Officer receives the claim and then at the rate applicable for each 6-month period as fixed by the Treasury Secretary during the pendency of the claim. (i)The Contractor shall proceed diligently with performance of this contract,pending final resolution of any request for relief,claim,appeal,or action arising under the contract,and comply with any decision of the Contracting Officer. 5.10 LABOR STANDARDS (SECTION 10 - Sub-Section 11) 5.10.1 52.222-26- EQUAL OPPORTUNITY (APR 2002) (Applicable to leases which exceed $10,000) (a) Definition. "United States,"as used in this clause,means the 50 States,the District of Columbia,Puerto,the Northern INITIALS & PAGE 24 LESSOR GOVT 079 7n r Mariana Islands,American Samoa,Guam,the U.S.Virgin Islands,and Wake Island. (b) If,during any 12-month period(including the 12 months preceding the award of this contract),the Contractor has been or is awarded nonexempt Federal contracts and/or subcontracts that have an aggregate value in excess of$10,000,the Contractor shall comply with subparagraphs(b)(1)through(b)(11)of this clause,except for work performed outside the United States by employees who were not recruited within the United States. Upon request,the Contractor shall provide information necessary to determine the applicability of this clause. (1) The Contractor shall not discriminate against any employee or applicant for employment because of race,color, religion,sex, or national origin. However,it shall not be a violation of this clause for the Contractor to extend a publicly announced preference in employment to Indians living on or near an Indian reservation, in connection with employment opportunities on or near an Indian reservation,as permitted by 41 CFR 60-1.5. (2) The Contractor shall take affirmative action to ensure the applicants are employed,and that employees are treated during employment,without regard to their race,color,religion,sex,or national origin. This shall include,but not be limited to,(i)employment,(ii)upgrading,(iii)demotion,(iv)transfer, (v)recruitment or recruitment advertising,(vi)layoff or termination, (vii)rates of pay or other forms of compensation,and(viii)selection for training,including apprenticeship. (3) The Contractor shall post in conspicuous places available to employees and applicants for employment the notices to be provided by the Contracting Officer that explain this clause. (4) The Contractor shall,in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race,color,religion, sex,or national origin (5).The Contractor shall send,to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding,the notice to be provided by the Contracting Officer advising the labor union or workers'representative of the Contractor's commitments under this clause,and post copies of the notice in conspicuous places available to employees and applicants for employment. (6) The Contractor shall comply with Executive Order 11246,as amended,and the rules,regulations,and orders of the Secretary of Labor. (7) The Contractor shall furnish to the contracting agency all information required by Executive Order 11246,as amended,and by the rules,regulations,and orders of the Secretary of Labor. The Contractor shall also file Standard Form 100(EEO- 1),or any successor form,as prescribed in 41 CFR part 60-1. Unless the Contractor has filed within the 12 months preceding the date of contract award,the Contractor shall,within 30 days after contract award,apply to either the regional Office of Federal Contract Compliance Programs(OFCCP)or the local office of the Equal Employment Opportunity Commission for the necessary forms. (S) The Contractor shall permit access to its premises,during normal business hours,by the contracting agency or the OFCCP for the purpose of conducting on-site compliance evaluations and complaint investigations. The Contractor shall permit the Government to inspect and copy any books,accounts,records(including computerized records),and other material that may be relevant to the matter under investigation and pertinent to compliance with Executive Order 11246,as amended,and rules and regulations that implement the Executive Order. (9) If the OFCCP determines that the Contractor is not in compliance with this clause or any rule,regulation,or order of the Secretary of Labor,this contract may be canceled,terminated,or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts,under the procedures authorized in Executive Order 11246,as amended. In addition,sanctions may be imposed and remedies invoked against the Contractor as provided in Executive Order 11246,as amended, in the rules,regulations,and orders of the Secretary of Labor;or as otherwise provided by law. (10)The Contractor shall include the terms and conditions of subparagraphs(b)(1)through(11)of this clause in edery subcontract or purchase order that is not exempted by the rules,regulations,or orders of the Secretary of Labor issued under Executive Order 11246,as amended, so that these terms and conditions will be binding upon each subcontractor or vendor. (11)The Contractor shall take such action with respect to any subcontract or purchase order as the Contracting Officer may direct as a means of enforcing these terms and conditions,including sanctions for noncompliance;provided .that if the Contractor becomes involved in,or is threatened with,litigation with a subcontractor or vendor as a result of any direction,the Contractor may request the United States to enter into the litigation to protect the interests of the United States. (c) Notwithstanding any other clause in this contract,disputes relative to this clause will be governed by the procedures in 41 CFR 60-1.1. NOTICE: The following terms of this clause are wavied of this contract: (Contracting Officer shall list terms]. 5.10.2 52.222-35 -EQUAL OPPORTUNITY FOR SPECIAL DISABLED VETERANS AND VETERANS OF THE VIETNAM ERA,AND OTHER ELIGIBLE VETERANS (DEC 2001) INITIALS & PAGE 25 LESSOR GOVT 080 (Applicable to leases which exceed$25,000 or more) (a) Definitions. As used in this clause-- "All employment openings"means all positions except executive and top management,those positions that will be filled from within the Contractor's organization,and positions lasting 3 days or less. This term includes full-time employment, temporary employment of more than 3 days duration,and part-time employment. "Executive and top management"measn any employee— (1) Whose primary duty consists of the management of the enterprise in which the individual is employed or of a customarily recognized department or subdivision thereof; (2) Who customarily and regularly directs the work of two or more other employees; (3) Who has the authority to hire or fire employees or whose suggestions and recommendations as to the hiring or firing and as to the advancement and promotion or any other change of status of other employees will be given particular weight; (4) Who customarily and regularly exercises discretionary powers;and (5) Who does not devote more than 20 percent or,in the case of an employee of a retail or service establishment,who does not devote more than 40 percent of total hours of work in the work week to activities that are not directly and closely related to the performance of the work described in para- graphs(1)through(4)of this definition. This paragraph(5)does not apply in the case of an employee who is in sole charge of an establishment or a physically separated branch establishment,or who owns at least a 20 percent interest in the enterprise in which the individual is employed. "Other eligible veteran"means any other veteran who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized. "Positions that will be filled from within the Contractor's organization"means employment openings for which the Contractor will give no consideration to persons outside the Contractor's organization(including any affiliates,subsidiaries,and parent companies)and includes any openings the Contractor proposes to fill from regularly established"recall"lists. The exception does not apply to a particular opening once an employer decides to consider applicants outside of its organization. "Qualified special disabled veteran"means a special disabled veteran who satisfies the requisite skill,experience, education,and other job-related requirements of the employment position such veteran holds or desires,and who,with or without reasonable accommodation,can perform the essential functions of such position. "Special disabled veteran"means-- (1) A veteran who is entitled to compenstion(or who but for the receipt of military retired pay would be entitled to compensation)under laws administered by the Department of Veteran Affairs for a disability— (i) Rated at 30 percent or more;or (ii) Rated at 10 or 20 percent in the case of a veteran who has been determined under 38 U.S.C.3106 to have a serious employment handicap(i.e.,a significant impairment of the veteran's ability to prepare for,obtain,or retain employment consistent with the veteran's abilities,aptitudes,and interests);or (2) A person who was discharged or released from active duty because of a service-connected disability. "Veteran of the Vietnam era"means a person who— (1) Served on active duty for a period of more than 180 days and was discharged or released from active duty with other than a dishonorable discharge,if any part of such active duty occurred— (i) In the Republic of Vietnam between February 28, 1961,and May 7, 1975;or (ii) Between August 5, 1964,and May 7, 1975,in all other cases;or (3) Was discharged or released from active duty for a service-connected disability if any part of the the active duty was performed— (i) In the Republic of Vietnam between February 28, 1961,and May 7, 1975;or (ii) Between August 5, 1964,and May 7, 1975,in all other cases. (b) General. (1) The Contractor shall not discriminate against the individual because the individual is a special disabled veteran, a veteran of the Vietnam era,or other eligibe veteran,regarding any position for which the employee or applicant for employment is qualified. The Contractor shall take affirmative action to employ,advance in employment, and otherwise treat qualified special disabled veterans,veterans of the Vietnam era,and other eligible veterans without discrimination based upon their disability or veterans'status in all employment practices such as-- (i) Recruitment,advertising,and job application procedures; (ii) Hiring,upgrading,promotion,award of tenure,demotion,transfer, layoff,termination,right of return R4r1ALS & - PAGE 26 LESSOR GOVT 081 p1 s from layoff and rehiring; (iii) Rate of pay or any other form of compensation and changes in compensation; (iv) Job assignments,job classifications,organizational structures,position descriptions,lines of progression, and seniority lists; (v) Leaves of absence,sick leave,or any other leave' • :''F' (vi) Fringe benefits available by virtue of employment,whether or not administered by the Contractor; (vii) Selection and financial support for training,including apprenticeship,an on-the-job training under 38 U.S.C. 3687,professional meetings,conferences, and other related activities, and selection for leaves of absence to pursue training; (viii) Activities sponsored by the Contractor including social or recreational programs; and (ix) Any other term,condition,or privilege of employment. (2) The Contractor shall comply with the rules,regulations,and relevant orders of the Secretary of Labor issued under the Vietnam Era Veterans'Readjustment Assistance Act of 1972(the Act),as amended(U.S.C.4211 and 4212). (c) Listing openings. (1) The Contractor shall immediately list all employment openings that exist at the time of the execution of this contract and those which occur during the performance of this contract,including those not generated by this contract,and including those occurring at an establishment of the Contractor other than the one where the contract is being performed,but excluding those of independently operated corporate affiliates,at an appropriate local public employment service office of the State wherein the opening occurs. Listing employment openings with the U.S.Department of Labor's America's Job Bank shall satisfy the requirement to list jobs with the local employment service office. (2) The Contractor shall make the listing of employment openings with the local employment service office at least concurrently with using any other recruitment source or effort and shall involve the normal obligations of placing a bona fide job order,including accepting referrals of veterans and nonveterans. This listing of employment openings does not require hiring any particular job applicant or hiring from any particular group of job applicants and is not intended to relieve the Contractor from any requirements of Executive orders or regulations concerning nondiscrimination in employment. (3) Whenever the Contractor becomes contractually bound to the listing terms of this clause,it shall advise the State public employment agency in each State where it has establishments of the name and location of each hiring location in the State. As long as the Contractor is contractually bound to these terms and has so advised the State agency,it need not advise the State agency of subsequent contracts. The Contractor may advise the State agency when it is no longer bound by this contract clause. (d) Applicability. (1) This clause does not apply to the listing of employment openings that occur and are filled outside the 50 states, the District of Columbia,the Commonwealth of Puerto Rico,the Commonwealth of Northern Mariana Islands,American Samoa, Guam,the Virgin Islands of the United States,and Wake Island. (e) Postings. (1) The Contractor shall post employment notices in conspicuous places that are available to employees and applicants for employment. (2)The employment notices shall— (i) State the rights of applicants and employees as well as the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified employees and applicants who are special disabled veterans,veterans of the Vietnam era,and other eligible veterans;and (ii) Be in a form prescribed by the Deputy Assistant Secretary for Federal Contract Compliance Programs,Department of labor(Deputy Assistant Secretary of Labor),and provided by or through the Contracting Officer. (3) The Contractor shall ensure that applicants or employees who are special disabled veterans are informed of the contents of the notice(e.g.,the Contractor may have the notice read to a visually disabled veteran,or may lower the posted notice so that it can be read by a person in a wheelchair). (4) The Contractor shall notify each labor union or representative of workers with which it has a collective bargaining agreement,or other contract understanding,that the Contractor is bound by the terms of the Act,and is committed to take affirmative action to employ,and advance in employment,qualified special disabled veterans,veterans of the Vietnam era,and other eligible veterans. (f) Noncompliance. If the Contractor does not comply with the requirements of this clause,the Government may take appropriate actions under the rules,regulations,and relevant orders of the Secretary of Labor issued pursuant to the Act. INITIALS .& PAGE 27 LESSOR GOVT 082 i a (g) Subcontracts. The Contractor shall insert the terms of this clause in all subcontract or purchase order of$25,000 or more unless exempted by rules,regulations,or orders of the Secretary of labor. The Contractor shall act as specified by the Deputy Assistant Secretary of labor to enforce the terms, including action for noncompliance. 5.10.3 52.222-36- AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES (JUNE 1998) (Applicable to leases which exceed$10,000) (a) General. (1) Regarding any position for which the employee or applicant for employment is qualified,the Contractor shall not discriminate against any employee or applicant because of physical or mental disability. The Contractor agrees to take affirmative action to employ, advance in employment and otherwise treat qualified individuals with disabilities without discrimination based upon their physical or mental disability in all employment practices such as-- (i) Recruitment,advertising,and job application procedures; (ii) Hiring,upgrading,promotion,award of tenure,demotion,transfer,layoff, termination,right of return from layoff,and rehiring; (iii) Rates of pay or any other form of compensation and changes in compensation; (iv) Job assignments,job classifications,organizational structures,position descriptions, lines of progression,and seniority lists; (v) Leaves of absence,sick leave,or any other leave; (vi) Fringe benefits available by virtue of employment,whether or not administered by the Contractor; (vii) Selection and financial support for training,including apprenticeships, professional meetings,conferences,and other related activities,and selection for leaves of absence to pursue training; (viii) Activities sponsored by the Contractor,including social or recreational programs;and (ix) Any other term,condition,or privilege of employment. (2) The Contractor agrees to comply with the rules,regulations,and relevant orders of the Secretary of Labor (Secretary)issued under the Rehabilitation Act of 1973(29 USC 793)(the Act),as amended. (b) Postings. (1) The Contractor agrees to post employment notices stating(i)the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified individuals with disabilities and(ii)the rights of applicants and employees. (2) These notices shall be posted in conspicuous places that are available to employees and applicants for employment. The Contractor shall ensure that applicants and employees with disabilities are informed of the contents of the notice (e.g.,the Contractor may have the notice read to a visually disabled individual,or may lower the posted notice so that it might be read by a person in a wheelchair). The notices shall be in a form prescribed by the Deputy Assistant Secretary for Federal Contract Compliance of the U.S.Department of Labor(Deputy Assistant Secretary)and shall be provided by or through the Contracting Officer. (3) The Contractor shall notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding,that the Contractor is bound by the teras of Section 503 of the Act and is committed to take affirmative action to employ,and advance in employment,qualified individuals with physical or mental disabilities. (c) Noncompliance. If the Contractor does not comply with the requirements of this clause,appropriate actions may be taken under the rules,regulations,and relevant orders of the Secretary issued pursuant to the Act. (d) Subcontracts. The Contractor shall include the terms of this clause in every subcontract or purchase order in excess of $10,000 unless exempted by rules,regulations,or orders of the Secretary. The Contractor shall act as specified by the Deputy Assistant Secretary to enforce the terms,including action for noncompliance. 5.10.4 52.222-37 - EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA,AND OTHER ELIGIBLE VETERANS (DEC 2001) (Applicable to leases which exceed$25,000 or more.) INITIALS & PAGE 28 LESSOR GOV'r 083 (a) Unless the Contractor is a State or local government agency,the Contractor shall report at least annually,as required by the Secretary of Labor,on-- (1) The number of special disabled veterans,the number of veterans of the Vietnam era,and other eligible veterans in the workforce of the Contractor by job category and hiring location;and (2) The total number of new employees hired during the period covered by the report,and of the total,the number of special disabled veterans,the number of veterans of the Vietnam era,and the number of other eligible veterans;and (3) The maximum number and the minimum number of employees of the Contractor during the period covered by the report. (b) The Contractor shall report the above items by completing the Form VETS-100,entitled"Federal Contractor Veterans' Employment Report(VETS-100 Report)". (c) The Contractor shall submit VETS-100 Reports no later than September 30 of each year beginning September 30, 1988. (d) The employment activity report required by paragraph(a)(2)of this clause shall reflect total hires during the most recent 12-month period as of the ending date selected for the employment profile report required by paragraph(a)(1)of this clause. Contractors may select an ending date: (1) As of the end of any pay period during the period July 1 and August 31 of the year the report is due,or(2)As of December 31,if the Contractor has prior written approval from the Equal Employment Opportunity Commission to do so for purposes of submitting the Employer Information Report EEO-1 (Standard Form 100). (e) The Contractor shall base the count of veterans reported according to paragraph(a)of this clause shall on voluntary disclosure. Each Contractor subject to the reporting requirements at 38 U.S.C. 4212 shall invite all special disabled veterans, veterans of the Vietnam era,and other eligible veterans,who wish to benefit under the affirmative action program at 38 U.S.C.4212 to identify themselves to the Contractor. The invitation shall state that—(l)The information is voluntarily provided;(2)The information will be kept confidential;(3)Disclosure or refusal to provide the information will not subject the applicant or employee to any adverse treatment;and(4)The information will be used only in accordance with the regulations promulgated under 38 U.S.C. 4212. (f) The Contractor shall insert the terms of this clause in all subcontract or purchase order of$25,000 or more unless exempted by rules,regulations,or orders of the Secretary of Labor. 5.11 SUBCONTRACTING (SECTION 10 - Sub-Section 12) 5.11.1 EMPLOYMENT OF ALIENS Each employee of the lessor and/or lessor's contractor(s)must be(1)a citizen of the United States of America or (2) an alien who has been lawfully admitted for permanent residence as evidenced by Alien Registration Receipt Card INS Form 1-151,or (3)an alien who presents other evidence from the Immigration and Naturalization Service that employment will not affect the alien's immigration. 5.11.2 52.209-6 - PROTECTING THE GOVERNMENT'S INTEREST WHEN SUB- CONTRACTING WITH CONTRACTORS DEBARRED, SUSPENDED,OR PROPOSED FOR DEBARMENT (JUL 1995) (Applicable to leases over$25,000) (a) The Government suspends or debars Contractors to protect the Government's interests. The Contractor shall not enter into any subcontract in excess of$25,000 with a Contractor that is debarred,suspended,or proposed for debarment unless there is a compelling reason to do so. (b) The Contractor shall require each proposed fust-tier subcontractor, whose subcontract will exceed$25,000,to disclose to the Contractor,in writing,whether as of the time of award of the subcontract,the subcontractor,or its principals,is or is not debarred,suspended,or proposed for debarment by the Federal Government. (c) A corporate officer or a designee of the Contractor shall notify the Contracting Officer,in writing,before entering into a subcontract with a party that is debarred,suspended,or proposed for debarment(see FAR 9.404 for information on the List of Parties Excluded from Federal Procurement and Nonpmcurement Programs). The notice must include the following: PAGE 29 INITIALS & LESSOR GOVT 084 i q (1) The name of the subcontractor. (2) The Contractor's knowledge of the reasons for the subcontractor being on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs. (3) The compelling reason(s)for doing business with the subcontractor notwithstanding its inclusion on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs. (4) The systems and procedures the Contractor has established to ensure that it is fully protecting the Government's interests when dealing with such subcontractor in view of the specific basis for the party's debarment, suspension,or proposed debarment. 5.11.3 RECRUITMENT AND ADVERTISING As between Lessor and the Government under this Lease,the parties hereby acknowledge and agree that Lessor shall not be subject to any of the following types of requirements which may otherwise apply to Lessor under this Lease: Goals,reporting and any other requirements in connection with subcontracting with small business,veteran-owned small business, service-disabled veteran-owned small business,HUBzone small business concerns,small disadvantaged business and women-owned small business concerns. Recruitment,advertising,job posting,noticing and any other requirements in connection with Special Disabled Veteran and Veterans of the Vietnam Era and other eligible veterans. Recruitment,advertising,posting,noticing and any other requirements in connection with workers with disabilities. INITIALS & PAGE 30 LESSOR GOVT O Q G + O J SECTION 6- REPRESENTATIONS AND CERTIFICATIONS (Acquisition of Leasehold Interests in Real Property) Complete appropriate boxes,sign the form, and attach to offer. NOTE: The"Offeror,'as used on this form,is the owner of the property offered,not an individual or agent representing the owner. The Offeror makes the following Representations and Certifications: 6.1 SMALL BUSINESS PROGRAM REPRESENTATIONS (52.219-1)(APR 2002) (a) (1)The National American Industrial Classifications System(NAICS)code for this acquisition is 531120. (2)The small business size standard applicable to this acquisition is the average annual gross revenues of$5 million or less for the preceding three fiscal years. (3)The small business size standard for a concern which submits an offer in its own name,other than on a construction or service contract,but which proposes to furnish a product which it did not itself manufacture,is 500 employees. (b) Representations. (1)The Offeror represents and certifies as part of its offer that it[ ]is, [ J is not a small business concern. (2) [Complete only if offeror represented itself as a small business concern in paragraph(b)(1)of this provision.] The offeror represents,for general statistical purposes that it[ ]is, [ ] is not,a small disadvantaged business concern as defined in 13 CFR 124.1002. (3) [Complete only ifofferor represented itself as a small business concern in paragraph(b)(1)of this provision.] The offeror represents as part of its offer that it[ ] is,[ ] is not a women-owned small business concern. (4) [Complete only if the offeror represented itself as a small business concern in paragraph(b)(1)of this provision.] The offeror represents as part of its offer that it[ ]is, [ ] is not a veteran-owned small business concern. (5)[Complete only if the offeror represented itself as a veteran-owned small business concern in paragraph(b)(4) of this provision.] The offeror represents as part of its offer that it[ ]is, [ ]is not a service-disabled veteran-owned small business concern. (6)[Complete only if offeror represented itself as a small business concern in paragraph (b)(1)of this provision.] The offeror represents,as part of its offer,that-- (i) It[ ] is,[ ]is not a HUBZone small business concern listed,on the date of this representation,on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration, and no material change in ownership and control,principal office of ownership,or HUBZone employee percentage has occurred since it was certified by the Small Business Administration in accordance with 13 CFR part 126;and (ii) It[ ]is, [ ]is not a joint venture that complies with the requirements of 13 CFR part 126,and the representation in paragraph(b)(6)(i)of this provision is accurate for the HUBZone small business concern or concerns that are participating in the joint venture. [The offeror shall enter the name or names of the HUBZone small business concern or concerns that are participating in the joint venture: Each HUBZone small business concern participating in the joint venture shall submit a separate signed copy of the HUBZone representation. INITTALS & PAGE 31 LESSOR GOVT 086 i m (7)[Complete if offeror represented itself as disadvantaged in paragraph (b)(2)of this provision]. The offeror shall check the category in which its ownership falls: Black American Hispanic American Native American(American Indians, Eskimos,Aleuts,or Native Hawaiians). Asian-Pacific American(persons with origins from Burma,Thailand,Malaysia,Indonesia, Singapore,Brunei,Japan,China,Taiwan,Laos,Cambodia(Kampuchea),Vietnam,Korea, The Philippines,U.S.Trust Territory of the Pacific Islands (Republic of Palau),Republic of the Marshall Islands,Federated States of Micronesia,the Commonwealth of the Northern Mariana Islands,Guam, Samoa,Macao,Hong Kong,Fiji,Tonga,Kiribat,Tuvalu,or Nauru). Subcontinent Asian(Asian-Indian)American(persons with origins from India,Pakistan, Bangladesh, Sri Lanka,Bhutan,the Maldives Islands,or Nepal). Individual/concem,other than one of the preceding. (c) Definitions. As used in this provision-- "Service-disabled veteran-owned small business concern"-- (1)Means a small business concern-- (i) Not less than 51 percent of which is owned by one or more service-disabled veterans or,in the case of any publicly owned business,not less than 51 percent of the.stock of which is owned by one or more service- disabled veterans;and (ii) The management and daily business operations of which are controlled by one or more service-disabled veterans or,in the case of a veteran with permanent and severe disability,the spouse or permanent caregiver of such veteran. (2) Service-disabled veteran means a veteran,as defined in 38 U.S.C. 101(2),with a disability that is service connected,as defined in U.S.C. 101(16). "Small business concern," means a concern,including its affiliates,that is independently owned and operated,not dominant in the field of operation in which it is bidding on Government contracts,and qualified as a small business under the criteria in 13 CFR Part 121 and the size standard in paragraph(a)of this provision. "Veterans-owned small business concern"means a small business concern-- (1) Not less than 51 percent of which is owned by one or more veterans(as defined at 38 U.S.C. 101(2))or,in the case of any publicly owned business,not less than 51 percent of the stock of which is owned by one or more veterans;and (2) The management and daily business operations of which are controlled by one or more veterans. "Women-owned small business concern" means a small business concern-- (1) That is at least 51 percent owned by one or more women;or,in the case of any publicly owned business,at least 51 percent of the stock of which is owned by one or more women;and (2) Whose management and daily business operations are controlled by one or more women. INITIALS & PAGE 32 LESSOR GOVT U 8 7 t _ r (d) Notice. (1) If this solicitation is for supplies and has been set aside,in whole or in part,for small business concerns,then the clause in this solicitation providuig notice of the set-aside contains restrictions on the source of the end items to be furnished. (2) Under 15 U.S.C. 645(d),any person who misrepresents a fan's status as a small, I1UBZone small,small disadvantaged,or women-owned small business concern in order to obtain a contract to be awarded under the preference programs established pursuant to sections 8(a),8(d),9, or 15 of the Small Business Act or any other provision of Federal law that specifically references section 8(d)for a definition of program eligibility, shall-- (i) Be punished by imposition of fine, imprisonment,or both; (ii) Be subject to administrative remedies,including suspension and debarment;and (iii)Be ineligible for participation in programs conducted under the authority of the Act. 6.2 WOMEN-OWNED BUSINESS (OTHER THAN SMALL BUSINESS) (52.204-5)(MAY 1999) (a) Definition. "Women-owned business concern",as used in this provision,means a concern which is at least 51 percent owned by one or more women;or in case of any publicly owned business,at least 51 percent of its stock is owned by one or more women;and whose management and daily business operations are controlled by one or more women. (b) RRe resentation. The Offeror represents that it[ ]is, [ ] is not a women-owned business concern. (Complete only if the offeror is a"men-owned business concern and has not represented itself as a small business concern in paragraph(b)(1)of FAR 51.119-1,Small Business Program Representations,ofthis solicitation.] 6.3 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (52.222-22)(FEB 1999) The Offeror represents that-- (a) It[ ]has, [ ]has not participated in a previous contract or subcontract subject to the Equal Opportunity clause of this solicitation; (b) It[ ]has, [ ]has not filed all required compliance reports;and (c) Representations indicating submission of required compliance reports,signed by proposed subcontractors,will be obtained before subcontract awards. 6.4 AFFIRMATIVE ACTION COMPLIANCE (52.222-25)(APR 1984) (Applies to contracts which include the clause at FAR 52.222-26,Equal Opportunity.) The Offeror represents that-- (a) It[ ]has developed and has on file, [ ]has not developed and does not have on file,at each establishment, affirmative action programs required by the rules and regulations of the Secretary of Labor(41 CFR 60-1 and 60-2); or (a) It[ ]has not previously had contracts subject to the written aff-rrmative action programs requirement of the rules and regulations of the Secretary of labor. 6.5 PROHIBITION OF SEGREGATED FACILITIES (52.222721)(FEB 1999) INITIALS 8c PAGE 33 LESSOR GOVT 088 S > (a) "Segregated facilities,"as used in this clause,means any waiting rooms,work areas,rest rooms and wash rooms, restaurants and other eating areas, time clocks,locker rooms and other storage or dressing areas,parking lots,drinking fountains, recreation or entertainment areas,transportation,and housing facilities provided for employees,that are segregated by explicit directive or are in fact segregated on the basis of race,color,religion, sex,or national origin because of written or oral policies or employee custom The term does not include separate or single-user rest rooms or necessary dressing or sleeping areas provided to assure privacy between the sexes. (b) The Contractor agrees that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments,and that it does not and will not permit its employees to perform their services at any location under its control where segregated facilities are maintained. The Contractor agrees that a breach of this clause is a violation of the Equal Opportunity clause in this contract. (c) The Contractor shall include this clause in every subcontract and purchase order that is subject to the Equal Opportunity clause of this contract. 6.6 CERTIFICATE OF INDEPENDENT PRICE DETERMINATION (52.203-2)(APR 1985) (a) The Offeror certifies that-- (1)The prices in this offer have been arrived at independently,without,for the purpose of restricting competition, any consultation,communication,or agreement with any other offeror or competitor relating to(i)those prices,(ii)the intention to submit an offer,or(iii)the methods or factors used to calculate the prices offered; (2)The prices in this offer have not been and will not be knowingly disclosed by the offeror,directly or indirectly,to any other offeror or competitor before bid opening(in the case of a sealed bid solicitation)or contract award(in the case of a negotiated solicitation)unless otherwise required by law; and (3)No attempt has been made or will be made by the offeror to induce any other concern to submit or not to submit an offer for the purpose of restricting competition. (b) Each signature on the offer is considered to be a certification by the signatory that the signatory— (1)Is the person in the offeror's organization responsible for determining the prices being offered in this bid or proposal,and that the signatory has not participated and will not participate in any action contrary to subparagraphs(a)(1)through (a)(3)of this provision;or (2)(i)Has been authorized,in writing,to act as agent for the following principals in certifying that those principals have not participated,and will not participate in any action contrary to subparagraphs(a)(1)through(a)(3)of this provision [insert full name of person(s)in the Offeror's organization responsible for determining the prices offered in this bid or proposal,and the title of his or her position in the offeror's organization]; (ii) As an authorized agent,does certify that the principals named in subdivision(b)(2)(i)of this provision have not participated, and will not participate,in any action contrary to subparagraphs(a)(1)through(a)(3)of this provision;and (iii) As an agent,has not personally participated,and will not participate,in action contrary to subparagraphs(a)(1)through(a)(3) or this provision. (c) If the offeror deletes or modifies subparagraph(a)(2)of this provision,the offeror must furnish with its offer a signed statement setting forth in detail the circumstances of the disclosure. 6.7 CERTIFICATIONAND DISCLOSURE REGARDING PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (52.203-11)(APR 1991) (Applies to leases which exceed$100,000.) (a) The definitions and prohibitions contained in the clause,at FAR 52.203-12,Limitation on Payments to Influence Certain Federal Transactions, included in this solicitation are hereby incorporated by reference in paragraph(b)of this certification. (b) The offeror,by signing its offer,hereby certifies to the best of his or her knowledge and belief that on or.after December 23, 1989,-- (1)No Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency,a Member of Congress,an officer or employee of Congress,or an employee of a INITIALS & PAGE 34 I 08f LESSOR GOVT Member of Congress on his or her behalf in connection with the awarding of any Federal contract,the making of any Federal grant, the making of any Federal loan,the entering into of any cooperative agreement,and the extension,continuation,renewal,amendment or modification of any Federal contract,grant,loan,or cooperative agreement; (2)If any funds other than Federal appropriated funds(including profit or fee received under a covered Federal transaction)have been paid,or will be paid,to any person for influencing or attempting to influence an officer or employee of any agency,a Member of Congress,an officer or employee of Congress,or an employee of a Member of Congress on his or her behalf in connection with this solicitation,the offeror shall complete and submit, with its offer,OMB standard form LLL,Disclosure of Lobbying Activities,to the Contracting Officer;and (3)He or she will include the language of this certification in all subcontract awards at any tier and require that all recipients of subcontract awards in excess of$100,000 shall certify and disclose accordingly. (c) Submission of this certification and disclosure is a prerequisite for making or entering into this contract imposed by section 1352,title 31,United States Code. Any person who makes an expenditure prohibited under this provision or who fails to file or amend the disclosure form to be filed or amended by this provision,shall be subject to a civil penalty of not less than$10,000,and not more than$100,000,for each such failure. 6.8 AUTHORIZED NEGOTIATORS The offeror or quoter represents that the following persons are authorized to negotiate on its behalf with the Government in connection with this request for proposals or quotations: [list names,titles,and telephone numbers of the authorized negotiators.] 6.9 FORMER USDA EMPLOYEES Offeror certifies he[ ]has been, [ ]has not been, an employee of the U.S.Department of Agriculture within the past three(3)years. ("Offeror"includes individuals that substantially own or control the company.) 6.10 FLOOD PLAIN OR WETLAND (E.o.11988,SEC.3b) The offeror certifies the site proposed is not located within the boundaries of a delineated flood plain or wetland. Land elevated by fill is unacceptable(Executive Order 11988,Section 3b). 6.11 PRIME FARMLAND The offeror certifies the site proposed is not located on prime farmlands as defined and mapped by the Soil Conservation Service, unless such lands have been zoned for residential/commercial purposes or are already built up. 6.12 RECORDED OWNER Offeror shall provide the name and address,including number,street,city,state, and zip code of the recorded owner of the property offered. 6.13 TAXPAYER IDENTIFICATION (FAR 52.204-3)(Oct 1998) (a) Definitions. "Common parent" as used in this provision,means that corporate entity that owns or controls an affiliated group of corporations that files its Federal income tax returns on a consolidated basis,and of which the offeror is a member. "Taxpayer Identification Number(TIN)"as used in this provision,means the number required by the IRS to be used by the offeror in reporting income tax and other returns. The TIN may be either a Social Security Number or an Employer Identification Number. (b) All offerors must submit the information required in paragraphs(d)through(f)of this provision to comply with debt collection requirements of 31 U.S.C. 7701(c)and 3325(d),reporting requirements of 26 U.S.C.6041, 6041A,and 6050M and implementing regulations issued by the(IRS). If the resulting contract is subject to the payment reporting requirements described in INITIALS & PAGE 35 LESSOR GOVT 090 Federal Acquisition Regulation(FAR)4.904,the failure or refusal by the offeror to furnish the information may result in a 31 percent reduction of payments otherwise due under the contract. (c) The TIN may be used by the Government to collect and report on any delinquent amounts arising out of the offeror's relationship with the Government(31 U.S.C.7701(c)(3)). If the resulting contract is subject to the payment reporting requirements described in FAR 4.904,the TIN provided hereunder may be matched with IRS records to verify the accuracy of the offeror's TIN. (d) Taxpayer Identification Number(TIN). []TIN: (]TIN has been applied for. []TIN is not required because: []Offeror is a nonresident alien,foreign corporation, or foreign partnership that does not have income effectively connected with the conduct of a trade or business in the United States.and does not have an office or place of business or a fiscal paying agent in the United States; []Offeror is an agency or instrumentality of a foreign government; []Offeror is an agency or instrumentality of the Federal Government. (e) Type of organization. [ ] Sole proprietorship; [ ] Partnership ( ] Corporate entity(not tax-exempt); [ ] Corporate entity(tax-exempt); ( ] Government entity(Federal,State,or local); ( ] Foreign government [ ] International organization per 26 CFR 1.60494; [ ] Other (f) Common Parent. []Offeror is not owned or controlled by a common parent as defined in paragraph(a)of this provision. []Name and TIN of common parent: Name TIN 6.14 DATA UNIVERSAL NUMBERING SYSTEM (52.204 (Jun 1999) (a)The offeror shall enter,in the block with its name and address on the cover page of its offer,the annotation "DUNS" followed by the DUNS number that identifies the offeror's name and address exactly as stated in the offer. The DUNS number is a nine-digit number assigned by Dun and Bradstreet Information Services. (b)If the offeror does not have a DUNS number,it should contact Dun and Bradstreet directly to directly to obtain one.A DUNS number will be provided immediately by telephone at no charge to the offeror. For information on obtaining a DUNS number,the offeror,if located within the United States,should call Dun and Bradstreet at 1-800-333-0505. The offeror should be prepared to provide the following information: (1) Company name. (2) Company address. (3) Company telephone number. (4) Line of business. (5) Chief executive officer/key manager. (6) Date the company started. (7) Number of people employed by the company. (8) Company affiliation. (c)Offerors located outside the United States may obtain the location and phone number of the local Dun and Bradstreet INITIALS & - PAGE 36 •LESSOR GOVT 091 Information Services office from the Internet home page at http://www.customerservice@dnb.com If the offeror is unable to locate a local service center,it may send an e-mail to Dun and Bradstreet at globalinfo@mail.dnb.com. INITIALS & PAGE 37 LESSOR GOVT 092 5 4 ALU$A :CMI L MLIEE AGENDA ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES^v DATE: JANUARY 29, 2003 v 4J SUBJECT: PILOT WATER CONSERVATION GRANT PROGRAM RECOMMENDATION It is recommended that the Azusa Utility Board/City Council authorize staff to develop a pilot water conservation grant program to promote use of drought tolerant plants/trees for landscaping for a period of one year with a budget not-to-exceed $150,000. BACKGROUND Because much of the water sold by utilities is used for landscape maintenance, many water utility conservation programs include some incentive to encourage the use of drought tolerant plants and water efficient irrigation systems. Given persisting drought conditions, staff proposes development and implementation of a pilot program that would make some funds available to residents, businesses, and schools, for drought resistant plants and trees. An Initial budget of $150 000 s suggested for this grant program. Funds would be made available to water utility customers that apply for the funds. A simple application form and agreement would be used to administer the program. The application process would be open (no deadlines) and funds would be provided up to a limited amount, on a first-come first-serve basis, over a 12 month period. The application package would seek to ensure that funds are allocated fairly, and that the funds go for their intended purpose—to encourage landscaping with plant materials that will reduce water usage. If the Utility Board approves of this program concept, staff will prepare a short application package for consideration by the Board at its next meeting. FISCAL IMPACT Up to $150,000 for 12 month pilot program, approximately I% of annual water revenues, with funding coming from water fund balance. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities ����//{ ^-G[ Paul Reid, Public Benefits Programs Coordinator U C,( 093E /�Zti 3 i o . Ai�Uw�A INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 29, 2002 SUBJECT: SB 1078—RENEWABLES PORTFOLIO STANDARDS RECOMMENDATION It is recommended that the Utility Board/City Council review this report and provide any relevant comments or questions to staff. BACKGROUND In September 2002, SB 1078 was approved to require retail sellers of electricity to increase their purchase of energy from renewable sources, such as wind, photovoltaic (PV), biomass, landfill gas, solar thermal, fuel cells, geothermal, small hydro (up to 30 megawatts), etc. SB 1078 requires that retail sellers Increase their purchase of energy from renewables by at least 1% per year until a renewables portfolio standard is reached which makes up 20°%o of seller's overall energy purchases. Since municipal utilities are not regulated by State agencies that oversee investor owned utilities, SB 1078 treats municipal utilities differently by delegating the responsibility for development of the renewables portfolio standard to the local governing body of each municipal utility. According to the California Municipal Utilities Association, the local utility board may determine: (1) what constitutes renewables; (2) what percentage of the portfolio will be made up of renewables; and (3) period of time or number of years to meet the standard. SB1078 states that such standard should take into consideration the effect of the standard on retail rates, reliability, and financial resources and the goal of environmental Improvements. SB 1078 also requires public utilities to report annually to customers the following Information: (1) expenditures of public funds for renewable energy resource development, including a description of programs, expenditures and expected results; and (2) resource mix used to serve customers broken down by fuel type with contribution of each eligible renewable energy source. 094 A, It has been suggested that in developing our approach to establishing a renewables energy portfolio standard, that we strive to meet the spirit and intent of SB 1078. Toward this end, it should be noted that SB 1078 requires private utilities to consider the year 2001 as a baseline for the renewables portfolio and calls for the renewables portion to increase by at least 1% per year beginning in 2003. If the portfolio is not increased by I% in 2003, it must be made up in subsequent years. The standard of 20% must be achieved by 2017. The Resources Management Division has put together some preliminary thoughts on complying with SB 1078. Here are some highlights to prompt some initial thinking on this subject: • We have sufficient resources to serve our anticipated load over next 5 years • Any purchase of renewables will cause us to have excess power • Since renewable energy costs more than other sources over the next three to five years, selling our excess power in wholesale market would require us to sell at a loss • Such losses would have to be made up by rate adjustments • We could define "renewables" in such a way to count "energy conservation" and "large hydro"--this could get us about 3% renewables and demonstrate progress • We could pursue feasible, cost effective, renewables at this time through SCPPA • Commitment to renewable energy has to be for the long term, since contracts with renewable energy providers are normally for a minimum duration of ten years and up to twenty-five years • We should establish a renewable resource account and consider funding a portion of it with public benefits funding in the future • Begin to educate the public with respect to this legislation A PowerPoint presentation is attached and will be presented at the meeting. FISCAL IMPACT The financial impact of this legislation will depend on the standards that are adopted by the Utility Board, and the cost effectiveness of the particular renewables that are selected. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Attachment: PP Renewable Energy Portforio.ppt 095 { _ ; Renewable Energy Options Y FOR DISCUSSION PURPOSES A Z U S A LIG H T & WATER January 29, 2003 Option 1 Aggressive • Achieve 20% renewables ASAP • Use wind power @5.4 cents kWh • $750,000/year required, 6% rate increase • May not be feasible 1 096 Option 2 Minimal • Take credit for everything we can, e.g., energy conservation, large hydro • Use public benefit funds in future to promote conservation and renewables • Live within existing funding levels • Declare we've met intent Option 3 Balanced • Pursue projects jointly through SCCPA • Count conservation and hydro projects • Establish renewable resource account and fund it with portion of public benefits funds • Educate public about SB 1078 requirements 2 097 t t AZUSA cxr •w4rtt 0 INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 29, 2002 SUBJECT: WASTE DIVERSION AND DISPOSAL TREND REPOR" RECOMMENDATION i `` it is recommended that the Utility Board/City Council review this report and provide any relevant comments or questions to staff. BACKGROUND In October 2000, the City Council approved a new contract with Athens Services which called for all waste collected in Azusa to be processed through a material recovery facility. It was believed that by diverting 13,000 additional tons per year, that the City would divert at least 50% of its waste stream from landfills and comply with the State's recycling requirement. Staff is pleased to report that for calendar year 2001, the City reached a diversion rate of 53%. This diversion rate must be reported to the State by January 31, 2003, and is based on recent corrections that Athens Services submitted to the Sanitation Districts. Although these adjustments resulted in an increase of 3,800 tons over what was previously reported, 13,000 of waste was diverted by Athens Services, according to their reports. Staff Is reviewing Athens' disposal data through a third parry consultant, and this review Is expected to be completed in early February. Year to date disposal trends continue to move slightly higher than last year for most service categories, as shown on attached spreadsheets. Yard waste diversion, however, rose by about 40% in December 2002 compared to December 2001. This increase in yard waste diversion saved about $2,800 in MRF processing costs for 1 month. Staff attributes this savings to yard waste barrel distribution program. 098 FISCAL IMPACT Fiscal impacts of tonnage increase will be calculated at time rates are adjusted, around May- June 2003. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Attachment: AthensD'SposalStat- AprMoDecOlxls 099 co co In = 4) co "t 0 CO CO = co 0 co N >, w w ca E -r_ �: m 4) CD c LL E E 0 U - 7 04 We w A CL el JJK Co r- C4 C-4 o CD 0 CL 0) U) o) IL c) to C C� >i ce) c> 04 44� r- 0 M CD 0 0) 4 Oat 0 CL V CD CD0 CSL C� OD fD q 04 r 0 suol co O 100 Athens Disposal Statistic 121/03 I 1 April 1999-Dec.2002 , K�, rc� ,i' rResl}lentlal Greenx-g°'3Mutd„,; '�' Fein r Commercial ;industrial7ofal, Reported d � -: Year Month .� - '" •Barrel v t Bain ' Bin• dam BPn . Ro(lo d , ans .-. pmo`�int, tVariance� 3?k`.�"..1 x'Notes+.3 h �_. 99 Apr-99 973.80 154.40 919.55 1,204.22 527.35 3,779.32 Not include separated United Waste. 99 May-99 824.93 155.68 834.86 1,154.33 526.78 3,496.58 3496.57 0.01 Not include separated United Waste. 99 Jun-99 974.30 190.52 1,006.71 1,355.82 515.49 4,042.84 Not include separated United Waste. 99 Jul-99 989.89 180.25 973.71 1,236.01 638.16 4,018.02 Not include separated United Waste. 99 Au 99 883.40 130.54 937.52 1,306.29 677.62 3,935.37 Not include separated United Waste. 9 Se 99 1 888.99 105.441 922.27 1,3136.72 728.08 3,951.50 Not include separated United Waste. 99 Oct-99 1 793.40 91.77 840.31 1,233.15 697.51 3,656.14 Not include separated United Waste. 99 Nov-99 793.04 144.15 895.15 1,265.04 615.84 3,713.22 Not include separated United Waste. 99 Dec-99 860.21 173.99 882.14 1,201.42 705.77 3,823.53 Not include separated United Waste. 00 Jan-00 868.12 155.67 768:39 1,196.51 724.69 3,733.38 3733.39 0.01 Not include separated United Waste. 00 Feb-00 1,026.15 111.58 684.42 1,230.36 568.62 3,621.13 Not include separated United Waste, 00 Mar-00 1,162.73 172.13 771.10 1,383.94 1,062.11 4,552.01 Not include separated United Waste. Subtotal: x11-;0 6:98,1,1;766:12 e10,43813• e 15;07181 798802 c46323:04'I rsus. 00 Apr-00 - 1,057.37 224.31 662.38 1,205.66 657.63 3,807.35 Not include separated United Waste. 00 May-00 1,135.41 269.24 767.11 1 1,395.92 670.21 4,237.89 4237.88 0.01 Not include separated United Waste. 00 Jun-00 1,139.86 259.61 779.41 1,286.24 767.89 4,233.01 Not include separated United Waste. 00 Jul-00 1,043.94 227.58 700.15 1,116.80 737.70 3,826.17 Not include separated United Waste. 00 Au -00 1,085.91 254.72 758.27 1,242.97 711.59 4,053.46 Not include separated United Waste. 00 Sep-00 951.64 197.74 681.52 1,126.09 701.94 3,658.93 Not include separated United Waste. 00 Oct-00 989.24 227.79 766.61 1,276.71 681.74 3,942.09 Report format changed onward 00 Nov-00 1,039.68 171.68 725.67 1,224.29 601.03 3,762.35 00 Dec-00 1,002.98 144.56 682.69 1,160.79 455.07 3,446.09 01 Jan-01 1,044.66 127.44 757.13 1,222.74 565.75 3,717.72 3717.71 0.01 01 Feb-01 877.30 116.64 739.41 1,176.80 491.51 3,401.66 3401.65 0.01 01 Mar-01 1,056.06 211.09 799.55 1,266.38 594.05 3,927.13 .LL s^jjSub4ota1. ;=12.424:05=72432:40 '1:.8,81910 #"14,'70139 WT,636.11: 4i,16,013A5o e4wV3e, 01 A r-01 1,036.58 235.72 781.76 1,241.38 580.55 3,875.99 01 may-01 1,198.30 253.69 809.53 1,329.58 550.33 4,141.43 4141.42 0.01 01 Jun-01 1,121.36 239.26 763.88 1,259.44 569.46 3,953.40 3953.41 0.01 01 Jul-01 1,209.05 221.09 781.93 1,296.95 534.14 4,043.16 01 AU9-01 1,184.61 242.02 788.25 1,346.79 564.51 4,126.18 01 Sep-011 1,002.76 199.15 687.82 1,141.41 550.89 3,582.03 3582.02 0.01 01 Oct-01 1,108.53 244.18 786.94 1,342.16 654.64 4,136.45 01 Nov-01 1,151.71 226.76 768.36 1,283.09 528.84 3,958.76 01 Dec-01 1,109.94 1 187.22 737.71 1,180.15 559.16 3,774.18 02 Jan-02 1,129.04 228.94 768.54 1,248.48 520.26 3,895.26 0 Feb-02 975.37 162.45 671.98 1,102.98- 548.04 3,460.82 02 Mar-02 1,069.46 228.79 724.36 1,180.47 531.71 3,734.79 f M�l: tr13,296.71, ¢'2,669.27 X9071206: x:14952':88 = '092M :;46.882.451 mit& - a ....x«a,�.•.;�::.;,,:c -,y.'s`���iw:E :'1 02 r-02 1,282.85 254.75 791.76 1,303.03 642.13 4,274.52 02 May-02 1,193.71 223.34 802.86 1,305.88 736.75 4,262.54 4262.53 0.01 02 Jun-02 1,088.24 244.59 726.25 1,205.39 587.33 3,851.80 02 Jul-02 1,278.11 303.70 825.31 1,363.65 607.99 4,378.76 02 Aug-02 1,137.56 231.14 775.97 1,281.46 648.24 4,074.37 02 Sep-02 1,064.50 219.81 740.42 1,222.68 522.34 3,769.75 3769.74 0.01 02 Oct-02 1,107.89 237.43 808.31 1,362.31 620.34 4,136.28 02 Nov-02 1,103.74 255.30 812.81 1,311.99 572.92 4,056.76 02 Dec-02 1,232.00 262.61 818.85 1,308.08 695.53 4,317.07 ' Y:-SubRotat a<1048860 i:2232.67 "x:.7'102.34TJI-,68447 .a5,63157 ,u,32,804:7&t ate;: , .4 �...,,� r,�x;r� .1:-<,_;�'" m:�:. ,.�=ru L-r, wGmnd TotaL,t :;4726832 €9,100:46 x:36;429,63Cr56.392.55 X27960.23'1.171;824:12 °wwr=*U"i Ree` eatG n 1q x, a»r.a z 9a r �# Ru$> i`sfi' *a Fami ' sdommerelal ;Inttr7aq ,ice.. . .'... ,t':. ` �. Vis:. Com art'son:=,» Barrel BaI7eI bin Bin_s' ff Rollo ohs " sr ,�,n -' • Apr-01 to Deo-01 10,122.84 2,049.09 6,906.18 11,420.95 5,092.52 35,591.58 Apr-02 to Dec- 10,488.60 2,232.67 7,102.54 11,664.47 5,633.57 37,121.85 Difference 365.76 183.58 196.36 243.52 541.05 1530.27 SY:AthensDlsposa!Stat-Apri199loDec02.012103.xls(April99-Dec02(012103)) 1l1 101 AL k5A GHTINFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES ^v DATE: JANUARY 29, 2003 v SUBJECT: ALLOCATION OF REPLACEMENT WATER RECOMMENDATION This is for your information only. BACKGROUND At a recent board meeting of the Main San Gabriel Watermaster a final resolution was reached regarding the allocation of replacement water between the San Gabriel Valley Municipal Water District and the Upper San Gabriel Municipal Water District. As you recall, staff brought this subject to your attention at two different Utility Board meetings. Initial dispute arose from the transfer of water rights of Azusa Agricultural Water Company from the City to Azusa Valley Water Company, which was followed with a dispute about the amount of replacement water to be supplied by San Gabriel Valley Municipal Water District. The final resolution, as passed by the Watermaster, established a fixed percentage from which the amount of annual replacement water will be calculated based on Azusa's total water production. The allocation is 40% to San Gabriel Valley Municipal Water District and 60% to Upper San Gabriel Municipal Water District. For illustration purposes, let me give you an example of how It works based on 22,000 AF of total production (without considering carryover rights and effect of annual Safe Yield). 40°k to Azusa, City of 22,000 X 40% = 8,800 AF 60% to AVWC 22,000 X 60% = 13,200 AF Azusa's water rights 3,656 AF 102 Page 2: Jan 29, 2003 Utility Board Agenda-Allocation of Replacement Water Replacement Water required: 8,800 AF - 3,565AF = 5.235 AF This is the amount of Replacement Water to be purchased from the San Gabriel Valley Municipal Water District. AVWC's water rights 12,963.73 AF Replacement Water required 13,200 AF - 12,963.73 AF = 236.27 AF This then will be the amount of Replacement Water to be purchased from the Upper San Gabriel Municipal Water District. FISCAL IMPACT No significant fiscal impact is anticipated. Prepared by: J. Hsu r 103 1 ALU$A l LXI L 4AfEl INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 29, 2003 SUBJECT: TRANSFORMING AZUSA INTO AN URBAN FOREST RECOMMENDATION It is recommended that the Utility Board/City Council review this report and provide any relevant comments or questions to staff. BACKGROUND At the request of Utility Board Chair, Diane Chagnon, we conducted a review of our existing Shade Tree Program to determine the value of the Utility having the same Tree Line USA designation as the City of Azusa. The Tree Line USA designation will aid in obtaining funding from grants. The current Shade Tree Program is a successful program. We have planted over 4,500 trees since inception, received grants in excess of $100,000 for tree planting activities and we are moving forward to our goal of being an Urban Forest. What is an Urban Forest? There appears to be no formal or widely accepted definition at this time, however, the City of Seattle defines their city as an Urban Forest using the following guidelines: Satellite Imagery shows that there is a 25% forestation ratio for their city; and a year 2000 survey of Seattle residents which indicates that 80% of respondents consider Seattle a "Green City." Benefits of being an Urban Forest: • Conserve energy by shading buildings and paved surfaces • Reduced heat island effect • Improve air quality by filtering airborne pollutants and removing atmospheric Carbon Dioxide 104 • Reduce storm runoff • Enhance aesthetics • Property values, on average, are 20% higher Accomplishments to date include meeting with the affected City Departments to determine the scope of the existing project. Tree Line USA was contacted to apply for the same designation as the City for the Utility. West Coast Arborists will update the current tree inventory by the end of April. Grant funding has been secured through the year 2004. Moving forward: • A model will be developed based on other successful Green Cities. • One, three and five years goals will be set • The tree inventory will be analyzed • A budget will be instituted for planting, maintaining and trimming new and mature trees which meet the needs of both the City and the Utility • An education and training program for interested residents and affected city personnel Will be put in place • Other sources of funding and grants will be vigorously pursued Progress reports will be made to the Utility Board. FISCAL IMPACT To be determined at a later date Prepared by: Paul Reid, Public Benefit Programs Coordinator 105 � t Az;04, Azusa Utility Board Meeting January 29, 2003 t4zun Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update 106 4-j Cd Cd 0 cd c cn Cd V� • �+ a) Cdcn 5 � Cd Cdcd 03 4--�En q O cn c vn r--)Cd Ct Cd Cld F .. w 107 (7)1N 00 u1q N 1p'(D 7 (O I aMui l O U Q ,. W U i N 00 V It OD' - ' .... N;v Lo V In m 1 { i O 00 9 ('') i QujQ ! N O W O U LL ! I I z l CL U Q LLI { ! OD �' � (� �p O C71 clef N'O !a �. a m (oi- a (ov a (ninoN (nr W of ni of C3 C6.06 p N N N N CA ` !N N !. U Cl) 4 04 Z 4 o O } LL LL F. W p CL it 00 U � (MN v CT d' (M Iz� C7 N N,NN 04i D z I N z Q IQmo ' QQI 2 4 0 �;Q m O!Z o LL, QIP;-i W ,W CD I 0� 1Y'i w N i O ?', H � z o! 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I 0, Ir S (n t2 010 U); Ifni 0 (L W U) R Qc�m Ci3w rn (nj �l (L i W K UJ U) ui U) If U) I w :a1 z! O :qO X: l lZI z LL 0 r !7 N L) �i 0 !!K. Ix Wniiniv izi E 2 RSI j i0LL, l x C! LLI oWW mi n ❑W (L iz rI 0 Z:1 m i 10 w , !�- 0 01 M, 01 Z - X 3: D 1- ' m _.-_L___-_ D. V) U) jW, 0 WO w r*� U i i(n 0 4 z 04 N'.-I ! I I uj cl! w iNIN V6 m E M LU w iU w A!a N aim cl C31 I !a w Z 0 0 zO 3 , (.) 1 1 15 C.) L) i0l U >I I iz Z I I L NiN QN a "�!"oloQ Z ALI N z1a Jr ALU�A •_CXR t MAfEI INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 29, 2003 SUBJECT: CHANGE ORDER POLICY AND PROCEDURE BACKGROUND The Azusa Utility Board instructed staff to provide information with respect to the City's existing policy and procedure for CIP contract change orders. In addition, the Board wanted a discussion of this subject at its January 2003 meeting. Here are the findings and comments for your consideration and as reference for your discussion. Azusa's current policy on change orders is that change orders in aggregate not exceeding 10% of the original contract amount can be processed administratively. Any change order exceeding this limit requires the approval of City Council. Change orders can be generally categorized as three kinds— (1) changes in material and labor of the project resulting in either Increase or decrease to the original contracted cost without Increase in time required to complete the job; (2) changes in scope of service without Increase to the original cost; (3) changes in material or method of construction without impacting the original cost or completion time. It Is my understanding from Board members' comments that you were more concerned with the management of change orders, and quality control of work being done. In discussion with City staff who are most involved with CIP, hence are responsible for managing change orders, here are their comments and suggestions: 1. Most CIP contracts are for installation or replacement of utility and public works Infrastructure, such as water lines, sewer lines, road paving, and electric lines. These types of projects should have very few unforeseen elements and should have fewer change orders, if any, than other types of projects. 111 2. Building remodeling, though these types of contracts are lesser in number than CIPS, they can cause the most difficult and contentious change orders, because many unknowns can surface after the project begins to unfold. 3. Staff recommends that the City use project manager to manage large CIP projects. 4. Staff also recommends that all remodeling projects be considered to perform an interior probing of the subject structure prior to completion of project specifications. This phase may require the City to hire trade experts, such as roofing, electrical, plumbing, or structural, to give the City independent advice on the kind of work necessary as part of the overall project. 5. All change orders are to be examined and recommended by the project manager and then signed off by management staff. May 1 add from my own experience, as part of the project control process, that there should be periodic project meetings between the contractor and City staff, and a running project spreadsheet to be in place ready for review, when requested, by the administration or City Council/Utility Board members. Staff appreciates your interest in this important and timely subject. We will await your comments and inputs before staff formulates a policy/procedure to better manage the City's CIP and their related change orders. Prepared by: J Hsu 112 AZUSA LIGHT &WATER CONSTRUCTION CONTRACT FIELD CHANGE ORDER CO Request No. APPROVED No. CO- Project No. Bid No. Contract No. Date Contract/ Project Name: Requested By: It is hereby requested, agreed, and authorized that the following change(s) in the work required by the contract documents be made: Description of the change: Indicate drawing and/or specification pages affected by this change: CONDITIONS TO THIS CHANGE ORDER: It is hereby understood and agreed that the above described field change will involve: ( ) Change in the Contract Price Add/ Deduct $ ( ) Change in the Contract Completion Time Add/ Deduct Days ( ) No change to the contract price and completion time. NOTE: If this change affects prior approvals for permits granted by any agency, written documentation of that agency's approval of the change is also required. Permitting Agency Approval CONTRACTOR ACCEPTANCE: By: Contractor's Business Name By: Signature Date Title INSPECTOR'S RECOMMENDATION: By: Signature . Date WATER DMSION APPROVAL: By: Asst. Director- Water Date 113 a 4 AZUSAIII IEI INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIEY y. DATE: JANUARY 29, 2003 �1 SUBJECT: FY 2002-2003 WORK PLAN UPDATES FOR AZUSA LIGHT &WATER RECOMMENDATION It is recommended that the Azusa Utility Board/Clty Council receive the attached work plan updates for.Azusa Light &Water for review and comment. BACKGROUND Staff from different divisions of Azusa Light &Water prepared the attached work plan updates for the Utility Board's consideration and input. A table of contents as requested by the Utility Board is provided to serve as an index for the updates. The updates cover the first two quarters of fiscal year 2002-03, from July 1 through December 31. The Board may provide input or comments regarding specific projects. FISCAL IMPACT There is no fiscal impact as a result of this report. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Steven Yang, Administrative Technician Attachments: 2002t003WKPM-QI &2.doc 114 AZUSh LIGHT & WATER DEPARTMENT FY2002-03 WORKPLAN UPDATES FIRST & SECOND QUARTERS Table of Contents Page Administration Division.......................................................................................... 3 City Facilities Energy Audit/Energy Efficiency Retrofits............................................4 Telecommunications............................................................................................. 5 CityManager Division ............................................................................................6 AzusaAdvantage ................................................................................................. 7 Communication Division........................................................................................8 AzusaToday........................................................................................................ 9 Azusa Tomorrow ................................................................................................ 10 Measure L Communications Plan ........................................................................ 1 1 Hand Across Azusa ............................................................................................ 12 Customer Service Division................................................................................... 13 Public Benefit Programs...................................................................................... 14 Automated Meter Reading (AMR)........................................................................ 15 Route Reorganization ......................................................................................... 16 Improve Customer Satisfaction............................................................................ 17 Improve Customer Communications .................................................................... 18 WOW - Premier Customers................................................................................. 19 "We go the extra mile" campaign......................................................................... 20 Electric Operations Division ................................................................................ 21 Work Order System Review ................................................................................ 22 Infrared Inspection.............................................................................................. 23 Line Truck (Boom Truck) with 60' Derrick (CI P) .................................................... 24 Owl/Hilltop Distribution Circuit Line Extensions (CIP) ........................................... 25 Pole Maintenance/Inspection Testing................................................................... 26 Tree Maintenance/Circuit Trimming .....................................................................27 Substation Site Acquisition "New Substation" (CIP-) .............................................. 28 Engineer, Procure, Construct (EPC) New Substation + Distribution System............ 29 Distribution Sys. Relay Upgrade (Monitoring & Automation Phase-1(CIP) .............. 30 Information Services Division.............................................................................. 31 Upgrade Avaya G3r (OS, VOIP, VAL, BCMS)....................................................... 32 Customer Information System Working Group...................................................... 33 Update Azusa/Colton CIS system to final PowerHouse version ..................:.........: 34 Phase II —CIS online system............................................................................... 35 PowerResource Division..................................................................................... 36 San Juan Unit #3 Performance Mitigation ............................................................. 37 Summer Peaking Resources............................................................................... 38 Renewable Resource Procurement ..................................................................... 39 i 1 115 AZUSA LIGHT & WATER DEPARTMENT RetailRates Revision..........................................................................................40 Long Term Participation in the CAISO Markets.....................................................41 ContractNegotiations .........................................................................................42 Resolution of Regulatory Issues ..........................................................................43 WasteManagement Division................................................................................44 MRFProgram.....................................................................................................45 Used Oil Recycling Block Grant Program .............................................................46 DOC Beverage Container Recycling Program ......................................................47 Dumpthat Junk Month........................................................................................48 Green Waste Barrel Distribution Program ............................................................49 Water Operations Division ................................................................................... 50 30-inch pipeline in Dalton from Sierra Madre to 5th............................................... 51 Repairs to Sierra Madre Reservoir....................................................................... 52 Rehabilitation of South Reservoir......................................................................... 53 Spreadingground wells....................................................................................... 54 Treatment plant sed basin and sludge lagoon design and construction .................. 55 Purchase replacement vehicles........................................................................... 56 Well 2 &3 discharge upgrade .............................................................................. 57 Distribution Main Upgrades ................................................................................. 58 2 116 AZUSA LIGHT & WATER DEPARTMENT Administration Division 3 117 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: City Facilities Energy Audit/Energy Efficiency Retrofits Division: Administration Team Leader/Members: Cary Kalscheuer Brief Description of Project: Conduct an energy audit of City Facilities using consultant. Develop recommendations on energy efficiency improvements. Implement recommendations via retrofits, or by installation of new equipment or fixtures: Funding Source: Public Benefit Program Fund Account Number: 24-40-739-082-6625 First Quarter Status: Most HVAC and Lighting Retrofits completed by end of September. For September, both Senior Center and Corporate Yard facilities reduced energy consumption by over 30% due to project. Second Quarter Status: Notice of Completions approved and final payments made to contractors. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Completed, and files conveyed from Cary Kalscheuer to Paul Reid. Schedule: Notes: Solar water heater retrofit at Senior Center dropped from project,to allow funds to be used for other more cost effective future projects desired by Customer Care. 4 118 L AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Telecommunications Division: Administration Team Leader/Members: Cary Kalscheuer/Federico Langit Brief Description of Project: Research potential uses of optical fiber installed by Charter Communications, and potential telecommunications services that could be provided by the Utility. Services that will be considered were discussed in the Utility's Strategic Mission exercise which took place between Sept 2000 to Apr 2001. Funding Source: Electric Retained Earnings Account Number: 33-40-739-230-6340 First Quarter Status: Executed contract with RW Beck for Telecommunications Feasibility Study, had kick off meeting, and assembled and provided all requested information to RW Beck for study. Helped schedule stakeholder meetings with City staff and school district. Second Quarter Status: Hosted stakeholder meetings, approved residential and business surveys, which were conducted in October. Received survey reports and draft Phase 1 report, which is under first review by IT staff, as requested by them. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Project is on schedule and within budget. Phase 2 and 3 reports are expected in January. i Schedule: Project completion is expected in February. Executive summaries and presentation by consultant will be scheduled for Utility Board either in February or March. Notes: Allowing IT staff to review Phase 1 report first before other staff will delay subsequent reports, however, all parties agree, including consultant,that IT's review is desirable. 5 119 i AZUSA LIGHT & WATER DEPARTMENT City Manager Division G 120 S AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Azusa Advantage Division: City Manager Team Leader/Members: Cole/Andrews/Quiroz/Gravens/G raf Brief Description of Project: Program consists of a weekly meeting to plan proactively strategies on marketing, publicity and synergy(with ALISD) on current events in and around Azusa. Whenever possible media opportunities are recognized and pursued for their positive portrayal of the City of Azusa, its employees, City Council, partnerships and sphere of influence. Funding Source: Communications Budget Account Number: 31-10-130-000-662 First Quarter Status: Weekly standing meetings ongoing. Second Quarter Status: Focus has been on generating the Azusa Annual Report, a six-page tabloid "...the most improved city," and planning and publicity for the annual Hands Across Azusa event as well as the development and implementation of a comprehensive communications plan for Measure "L." We held our first focus group to evaluate our communication efforts. Two additional focus groups will take place in the third quarter. Third Quarter Status: i Fourth Quarter Status: Year End Disposition: Schedule: Weekly meetings continue to be held and the focus of this and next quarter's efforts will be • a comprehensive economic development plan,which will be called, "Azusa the most improved city in the San Gabriel Valley." It will highlight redevelopment's light industrial and the Mountain Cove development, Block 36, Monrovia Nursery and the Foothill Shopping Center t projects. The purpose of the plan is to position Azusa as a proactive and positive leader in terms of development and economic stability in the area. It will be supported by a local and regional media campaign to attract businesses and new homebuyers to Azusa. Notes: 7 121 ` T AZUSA LIGHT & WATER DEPARTMENT Communication Division 8 122 I AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Azusa Today Division: Communications/TV Team Leader/Members: M.Quiroz Brief Description of Project: Write, produce and edit a 40-minute TV show on current events and projects throughout the city of Azusa. The completed show is placed on a program schedule and aired on Azusa government channel 55. Assistant City Manager, Robert Person is the moderator and host of the show. The show is taped at the Charter facilities in Pasadena each month. Funding Source: Communications Account Number: 31-10-130-000-662 First Quarter Status: This quarter we focused on Azusa's downtown. We highlighted the Downtown Business Association and the redevelopment efforts for Block 36. Second Quarter Status: The focus for this quarter was on the Williams Fire and its aftermath. Area businesses affected by the fire and the impact to the river and canyon were highlighted. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: This program is taped monthly at the Charter studios in Pasadena. Notes: We have recently been apprised that Charter Communications will no longer assist us with any production that goes beyond the City Council meeting,which they tape for us. They will allow us to continue taping Azusa Today at their studios in Pasadena on the condition that we provide our own director,switcher, producer, camera operators, sound person and editor. This arrangement puts the monthly production of Azusa today in jeopardy. We simply do not have the resources to hire all the extra people. I am negotiating with them for additional personnel to continue with this project. One other area that has being affected by Charter's decision to limit their resources to Channel 55 is in equipment. Charter has informed us that they will no longer assist us with the maintenance of our equipment if it is deemed by them to incur a cost to them. 9 123 i AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Azusa Tomorrow Division: Communications/Newsletter Team Leader/Members: M.Quiroz/Grace Contreras Brief Description of Project: Write, photograph and lay-out the monthly Azusa newsletter which gets circulated via the Light and Water utility bills. Funding Source: Public Information Budget Account Number: 31-10-130-000-662 First Quarter Status: On schedule. Second Quarter Status: On schedule. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: This project is generally on-schedule. Notes: In our first focus group to ascertain the effectiveness of our in-house communications efforts, Azusa Tomorrow was described as the foremost purveyor of information about the city. So much so that many want to see it extended to two times a month. It should also be noted that it beat-out all other information outlets. 10 124 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Measure L Communications Plan Division: Communications Team Leader/Members: M.Quiroz Brief Description of Project: Develop a comprehensive communication plan for information relating to Measure L Funding Source: Communications Account Number: 31-10-130-000-662 First Quarter Status: Second Quarter Status: I have developed and I am in the process of implementing aspects of a comprehensive communication plan for the resident of Azusa about Measure L. This communication effort will be similar to the one we mounted for the Library Bond Measure'L.' It will include communication pieces, which inform residents of the facts pertaining to Measure L. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: On-schedule. Notes: 11 125 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Hand Across Azusa Division: Communications Team Leader/Members: M.Quiroz Brief Description of Project: Provide support for Human Relations Commission Annual Martin Luther King Event Funding Source: Communications Account Number: 31-10-130-000-662 First Quarter Status: Second Quarter Status: Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: On-schedule.This is a very labor-intensive project,which yearly takes a heavy toll on my overall communication budget. Notes: This is a very labor-intensive project,which yearly takes a heavy toll on my overall communication budget. 12 126 AZUSA LIGHT & WATER DEPARTMENT Customer Service Division 13 127 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Public Benefit Programs Division: Azusa Light&Water Customer Service Team Leader/Members: Karen Vanca, PB Coordinator Paul Reid Brief Description of Project: Develop, implement, and track Public Benefit programs for residential, small, medium, and large business customers. Funding Source: Public Benefit Funds Account Number: 24-40-739-082-6625 First Quarter Status: In process of re-evaluating programs and funding levels to ensure they match city's plan and prepare to make any redistributions, if necessary. Maintaining program tracking reports. Second Quarter Status: FY 2002-03 strategy is to continue with,existing programs,only slightly shifting funds,where appropriate. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Public Benefit funds to fund programs that benefit all aspects of the Azusa community Schedule: Notes: 14 128 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Automated Meter Reading (AMR) Division: Azusa Light &Water Customer Service I Team Leader/Members: Derek McFann/Sallie Brief Description of Project: To improve customer service and increase efficiency, radio read meters will be installed on non-access or bad dog accounts. Use of AMR meters will ensure that all reads will be obtained for billing in less time than is presently possible. Appointments with customers and repeat trips to obtain reads will be eliminated. Funding Source: Account Number: First Quarter Status: This project was started in February 2002 with 217 meters to be changed. New meters are added and as AMR meters are installed they are removed from the list. To date,79 meters have been installed, leaving 140 remaining on the list to be changed out. i Second Quarter Status: 567 AMR meters installed as of 12/10/02. 127 more hard-to-read meters need to be installed. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: ' Notes: Installation of AMR meters on non-access accounts will be completed by the end of the fourth quarter. The meters will be installed by meter readers and field service representatives on a weekly basis. Entry of the installation data will be done by customer service representatives. 15 129 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Route Reorganization Division: Azusa Light&Water Customer Service Team Leader/Members: Derek McFann/Sallie Acero Brief Description of Project: Reorganization of the meter reading routes will provide better customer service and will allow completion of the reading schedule in less time than is presently required. Funding Source: Account Number: i First Quarter Status: 25%of entire project is complete. Second Quarter Status: 90% reorganization complete. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: The organization plan for the new routes will be completed by the end of the second quarter. Input of the data by the customer service representatives should be completed by the end of the fourth quarter. Notes: 16 130 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Improve Customer Satisfaction Division: Azusa Light&Water Customer Service Team Leader/Members: K. Vanca, S.Acero, D. Mcfann Brief Description of Project: Determine service level baseline. Improve customer satisfaction by benchmarking, setting performance targets,training, monitoring and giving employee feedback in key customer contact areas. Identify opportunities for office and field employees to provide additional customer services. This is a multiple-year project and ongoing measurement of results. Funding Source: Consumer Service Account Number: 31-40-711-909-6493 First Quarter Status: Development of customer questionnaire. Second Quarter Status: Baseline customer survey conducted and opportunities for service improvements identified. Performance targets set for 2003 with employee input. Cashiering standards developed by employee team. Field employee training planned for January 2003. Customer communication plan completed with new motto: We go the Extra Mile. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: 1. Perform a baseline service level survey. 1 st-2nd quarter 2. Identify service improvement opportunities. Ongoing 3. Benchmark&set performance targets. 1 st-2nd quarter 4. Develop standards: Cashiering 2nd quarter Call Center 2nd quarter Answer Service 2nd quarter Cable& Internet referrals 3rd quarter Misreads 2nd quarter 5. Employee feedback. 2nd-4th quarter 6. Reward success &retrain. Ongoing after 1 st quarter. Notes: 17 131 i AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Improve Customer Communications Division: Azusa Light&Water Customer Service I Team Leader/Members: Karen Vance Brief Description of Project: Update residential service booklet, including modernizing graphics. Continuously update information on Light&Water's web site. Funding Source: Consumer Service Account Number: 31-40-711-909-6539 First Quarter Status: Draft in review process. Second Quarter Status: Draft in review process. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Update and distribute residential customer service booklet. Schedule: 1st Qtr: Rewrite booklet. 2nd Qtr: Review. 3rd Qtr: Publish and distribute. 4th Qtr. Continue distribution. Notes: 18 132 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: WOW - Premier Customers Division: Azusa Light&Water Customer Service Team Leader/Members: K. Vanca, S. Acero, D. McFann Brief Description of Project: Working with our employee team, identify"premier"customers and how we can provide them knock your socks off service. Funding Source: Account Number: First Quarter Status: Not started yet. Second Quarter Status: Not started yet. Third Quarter Status: I Fourth Quarter Status: Year End Disposition: To have identified these customers and implemented ways to improve service to them that is above and beyond what they normally expect. Schedule: i Notes: 19 133 r' r AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: 'We go the extra mile'campaign Division: Light &Water Customer Service I Team Leader/Members: M.Quiroz Brief Description of Project: Public Relations. Marketing campaign to highlight customer service improvements and additional services to the customers of Azusa Light&Water. Funding Source: Light&Water Customer Service Account Number: and some Communications resources First Quarter Status: Second Quarter Status: Begun to develop a communications plan,which included Meter reader of the year, highlights of customer satisfaction survey, door hangers,foam cores, special L&W edition of Azusa Tomorrow, and leave behind collaterals. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: On-going Notes: 20 134 AZUSA LIGHT & WATER DEPARTMENT Electric Operations Division 21 135. AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Work Order System Review Division: Electric Operations Team Leader/Memberg: (See below"'" under"Notes") Brief Description of Project: Work orders are issued to have work done by field personnel. Work orders communicate what is to be done, what equipment and materials are needed to do the job, and authorize field personnel to commence work. Work orders also are used to track costs for billing and accounting purposes. This is a review of the work management process, which is largely a manual process,to see how it can be made more efficient, and possibly automated, for billing, accounting and management purposes. Funding Source: WA Account Number: N/A First Quarter Status: Review began in last quarter of FY 2001-02. In the first quarter of 2002-03, staff met with a work order system vendori Synergen,who was retained by the City of Colton to implement a work order system there. Staff was impressed by Synergen and requested them to review our work order system and advise us on our next steps. Synergen agreed to interview staff from other departments and divisions that are involved in the work order process. Second Quarter Status: Synergen interviewed staff from Electric Engineering, Electric Operations, Customer Care, Finance, Purchasing, and IT, to get their perspective and concerns with the current work order system, and to come up with recommendations. Synergen confirmed what they heard as "staff concerns"with a second validation meeting held with the same staff. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Synergen is expected to provide a written report as well as a presentation of their findings and recommendations to Joe Hsu and other affected staff in January 2003. Following this presentation decisions will be made about project management and an RFP will be formulated and presented to the Utility Board for consideration. Notes: In last quarter of 2001-02, staff from Engineering and Electric Divisions met to map out existing work flow process. Over 50 tasks were identified and put into a matrix,which describe the"who,what, when,where, how and why's"of the work order process. This process is being reviewed for its efficiency, and areas of concern are being examined. Team Members include Dave Ramirez,Cary Kalscheuer, Federico Langit, Dan Kjar, Hien Vuoung, and Liza Cawte. 22 136 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Infrared Inspection Division: Electric Team Leader/Members: Ramirez/Kjar Brief Description of Project: Annual infrared inspection of 12 kV Overhead lines with infrared equipment and camera to locate hot spots on the electric system, so that preventative maintenance can be preformed. This proactive maintenance helps prevent customer outages. Funding Source: Operations O.H. Line Expense Account Number: 33407358306493 First Quarter Status: No activity. Second Quarter Status: No activity. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Spring 2003. ' Notes: Ten hot spots were identified and repaired last spring. 23 137 I AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Line Truck(Boom Truck) with 60' Derrick (CIP) Division: Electric Team Leader/Members: D. Ramirez Brief Description of Project: The new line truck will replace an existing 1982 GMC/Pitman Pole Cat 2400 model line truck that was purchased in 1983. The lead-time for delivery of a line truck is about 12 months from the time the manufacturer receives the order. Funding Source: Light ($290,000) Account Number: 33-80-000-730-7135/73002A First Quarter Status: Waiting on manufactures delivery scheduled Second Quarter Status: The new line truck was delivered on December 5,2002, and in service operator training was provide by Pacific Utility the following week at the city yard. ` Third Quarter Status: Fourth Quarter Status: Year End Disposition: Completed Project Schedule: Thirteen months from approval of specifications to delivery of vehicle. Notes: Purchase price$ 184,990 24 I 138 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Owl/Hilltop Distribution Circuit Line Extensions (CIP) Division: Electric Team Leader/Members: D. Ramirez/F. Langit Brief Description of Project: Project Phase II. Hilltop Circuit will be routed along San Gabriel Ave from Sierra Madre north to Canyon Vista to provide a loop feed with the Owl circuit.The installation of conduit and underground structures are part of San Gabriel Avenue medium project. Funding Source: Light$537,181 Account Number: 33-80-000-730-7145/84000A First Quarter Status: City Engineer working on specifications for landscaping medium including electrical conduit and substructure details provided by electric department. Second Quarter Status: Approved plans and specifications. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Award of contract mid January/February 1 Notes: Electrical conduits and substructures for Light&Water bid as separate line item in the bid package. 25 139 I AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Pole Maintenance/Inspection Testing Division: Electric Team Leader/Members: D. Ramirez/D. Kjar Brief Description of Project: Inspection,testing and treatment of power poles (wood) for structural integrity per maintenance agreement and the reinforcing of poles that are candidates for the Osmo-C- Truss (steel,)or Fiber Wrap reinforcement. This proactive program helps prevent outages during storm conditions. Funding Source: Operations & Maintenance of O. Account Number: 233-40-735-900-6493 H. Lines First Quarter Status: No action. I Second Quarter Status: No action. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: 750 poles to be inspected starting February/March 2003. Notes: 1616 poles tested to date about 10%require ground line restoration (steel strutting) or replacement. To date 106 pole have been restored at the ground line and 23 poles have been changed. 3 26 140 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Tree Maintenance/Circuit Trimming Division: Electric Team Leader/Members: D. Ramirez/D. Kjar Brief Description of Project: Maintenance annual circuit trimming (power-line clearance) pro-active maintenance program to reduce or eliminate customer outages due to trees coming in contact with high voltage power lines. Funding Source: Operations & Maintenance of O. Account Number: 233-40-735-930-6493 H. Lines First Quarter Status: Scheduled contractor West Coast Arborist Inc. Second Quarter Status: Circuit trimming started and ongoing for FY 2002/2003 Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Circuit trimming to continue in third quarter. Notes Fiscal Year: 2001/2002,2,042 trees were trimmed 2000/2001, 1,652 trees were trimmed 1999/2000, 1,311 trees were trimmed 1998/1999, 1,529 trees were trimmed 27 I 141 i AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Substation Site Acquisition "New Substation" (CIP) Division: Electric I Team Leader/Members: F. Langit Brief Description of Project: Site needed for construction of new substation south of the 210 freeway. (160 West Gladstone St.) Project Is being carried over from fiscal year 2001-2002. Funding Source: Light ($850,000) 1 Account Number: 33-80-000-730-7101/82000A First Quarter Status: Performed and completed Environmental Document(Cega) and obtained Project Approval. Started contract Agreement for purchase of land from owner. Also, completed architectural design of frontage wall and landscaping. Second Quarter Status: Closed escrow as of July 2002. Assisted In relocating previous owner and tenant to another site. Third Quarter Status: Start demolition and preliminary site Improvement at 1160 West Gladstone. Performed early solicitation of design/engineering services. Fourth Quarter Status: Complete demolition and minor site improvement in preparation for detailed design/engineering of substation. Year End Disposition: Demolition scheduled to start September 2002 and complete minor site improvements 30 days later. Schedule: Notes: 28 i 142 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Engineer, Procure, Construct(EPC) New Substation + Distribution System Division: Electric Team Leader/Members: F. Langit Brief Description of Project: The addition of the new substation south of the 210 freeway adds flexibility of operation and system reliability. Project is being carried over from fiscal year 2002-03. A budget of $4.8 million is to be carried for the construction which will start on FY 2002-2003,culminating on FY 2003-2004. Funding Source: Light($4,700,000) Account Number: 33-80-000-730-7140/82000B First Quarter Status: Project on hold until land acquisition is completed. Project site was acquired as of July 2002. Second Quarter Status: Started solicitation of RFP for Design/Engineering of new substation. Proposals received to be revised into an Engineer, Procure&Construct (EPC) arrangement. Third Quarter Status: EPC proposals. Coordinate with Edison and make arrangement for 66kV lines to serve new substation. Fourth Quarter Status: Award EPC contract to Black&Veatch Construction Inc. Year End Disposition: Finalize review of all engineering and procurement requirements in preparation for construction. Schedule: Start construction of new substation by early 2003. Notes: Edison's cost for 66kV lines not part of this budget. 29 143 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Distribution Sys. Relay Upgrade (Monitoring&Automation Phase-1(CIP) Division: Electric Team Leader/Members: F. Langit Brief Description of Project: Preventive maintenance and replacement of existing protective devices at Azusa substation needed to improve reliability and continuity of service. Funding Source: Light($251,000) 1 Account Number: 33-80-000-730-7120/73002B First Quarter Status: Completed Initial review of SEL microprocessor based protective relay devices combining meter, relay and communication features. Second Quarter Status: Solicited project proposals to perform pilot project in installing additional protective relays at existing substation. Third Quarter Status: Start construction of pilot project (2 circuits included are Amforge and Sierra Madre) Fourth Quarter Status: Complete construction of pilot project and prepare for testing. Year End Disposition: Continue evaluation of pilot project and submit recommendation for installation of additional relays on remaining Azusa Substation feeder circuits. Schedule: Notes: 30 144 AZUSA LIGHT & WATER DEPARTMENT Information Services Division 31 145 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Upgrade Avaya G3r(OS, VOIP, VAL, BCMS) Division: Citywide MIS Team Leader/Members: Kevin Morningstar Ann Graf, Lysell Wofford, Mike Guadagnino Brief Description of Project: Upgrade the City's Avaya G3r telephone switch. Upgrades include a new operating system (Multivantage), replacement of obsolete hardware,addition of LAN connectivity, VOIP capability, Voice Announcement over LAN capability, and replacement of Azusa Light&Water's CMS system with Avaya BCMS. Joint project between citywide MIS staff. Funding Source: General Fund&Light&Water Account Number: Capital Equipment Accts First Quarter Status: Initial configurations developed with staff from Avaya and Daycom. Second Quarter Status: Working with Avaya and Daycom staff to implement a free VOIP demo system and refine equipment configuration. Third Quarter Status: VOIP demo system active and functioning on Azusa LAN effective Jan 13. Equipment configuration completed and item scheduled for Utility Board on January 28. Fourth Quarter Status: Year End Disposition: Schedule: Upgrades are tentatively scheduled for implementation in late March,early April. Notes: 32 146 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUS A FY2002-03 WORKPLAN Project Name: Customer Information System Working Group Division:Azusa/Colton Customer Service&MIS Team Leader/Members: Kevin Morningstar Brief Description of Project: In December 2006 the Hewlett Packard 3000 line of equipment will no longer be supported by Hewlett Packard. Since Azusa and Colton share a common internal/custom CIS system that runs on this platform a migration plan must be in place before the end of calendar year 2003. As part of the process, Azusa and Colton have agreed to create a joint working group with staff from both cities that are tasked with looking into CIS alternatives. A joint RFI is due by May 2003. Funding Source: Operations items Account Number: First Quarter Status: Azusa Light&Water MIS staff worked on developing the proposal for a joint working group to investigate CIS systems and the options relating to migrating the current CIS system to another hardware olafform. Second Quarter Status: The proposal was presented to Colton Public Utilities recommending a joint working group in order to avoid duplicated efforts. Calton agreed in December to a joint effort with staff from both cities working together to generate an RFI. Third Quarter Status: Lund Performance Systems was selected to be a migration consultant; Colton and Azusa are sharing the costs. The Working Group will start meeting in February. Fourth Quarter Status: RFI due by the last week in May to correspond with the annual CIS Convention in Nashville. Members of the working group plan to attend to present the RFI to vendors and preview software. Year End Disposition: I Schedule: January 2003 Virtual Working Group to begin RFI development. June 2003 RFI development process complete. RFI released for vendor response. (Attend C15 Conference 1003 to deliver RP1 to vendors present.) August 2003 RFI response period closes. Working group begins analysis. (/olnt meetkUs are recommended.) September 2003 Final reports back to each utility on or about September 30. Notes: 33 14'7 i AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Update Azusa/Colton CIS system to final PowerHouse version. Division: Azusa Light &Water MIS staff Team Leader/Members: Kevin Morningstar and Margaret DeLano Brief Description of Project: Hewlett Packard has announced that it will no longer support the HP 3000 after December 2006. Given that date the cities of Azusa and Colton need to be underway with migration efforts no later than Fiscal Year 03/04. In preparation for migration the Light&Water MIS staff will be performing the last system wide update of the CIS software. Project will entail an entire system rebuild, data and code clean up to facilitate migration effort. Funding Source: Operations item Account Number: First Quarter Status: Second Quarter Status: Third Quarter Status: Project is currently pending the release of Cognos' version 8.49 of PowerHouse. Fourth Quarter Status: Year End Disposition: Schedule: Project will be handled on an as time permits basis. Project is scheduled for completion no later than the end of the fiscal year, but may be pushed back by other tasks. Other tasks will take precedence in the 3'd quarter, including the Avaya phone system upgrade and the CIS Working Group RFI process. Notes: 34 148 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Phase II -CIS online system Division: Azusa Light&Water MIS staff Team Leader/Members: Kevin Morningstar and Margaret Delano Brief Description of Project: The online customer access to customer data via azusalw.com and coltononline.com has been in place for over a year. The second phase entails adding additional information to that currently available as well as adding online credit card acceptance. Staff is also investigating online service requests. Funding Source: Operations Item Account Number: First Quarter Status: Second Quarter Status: Database changes and initial webpage concepts were developed and tested. Additional programming language functionality set for release in the next version of PowerHouse web (due in February'03)suspended development work. Third Quarter Status: Holding pending release of PowerHouse Web version 8.49. Fourth Quarter Status: Year End Disposition: Schedule: Project will be handled on an as time permits basis. Project was originally scheduled for completion by December 2002 for "coltononline", but it was pushed back due to the pending release of key features in the upcoming version of PowerHouse Web. Other tasks will take precedence in the 3"quarter, including the Avaya phone system upgrade and the CIS Working Group RFI process. Notes: 35 149 i AZUSA LIGHT & WATER DEPARTMENT Power Resource Division 36 150 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: San Juan Unit#3 Performance Mitigation Division: Power Resource Team Leader/Members: Bob Tang/Richard Torres,Tim Vuong Brief Description of Project: As demonstrated in the past year,the department's ability to provide reliable low-cost electricity is intricately tied to the performance of San Juan Unit#3. Planned and unplanned outages of the unit have and will continue to cause adverse impacts to our objectives.The following tasks will be undertaken to mitigate to the maximum extent possible the San Juan contingencies: Al - Explore long term asset exchange arrangements with third parties A2- Explore asset divestiture arrangements A3 - Explore joint reserve sharing arrangements Funding Source: Account Number: First Quarter Status: Second Quarter Status: The City executed an Option Agreement with the Los Alamos County(LAC) in mid-October,2002 to allow the City and LAC to enter into exclusive negotiations for a period of sixty days commencing November 1 for an assignment arrangement of Azusa's San Juan to LAC. During the month of November,the parties performed due diligence review of the proposed arrangement.The staff of LAC visited the City and SCPPA in mid-November. During the due diligence process, SCPPA j bond counsel advised us that the proposed arrangement may present adverse tax consequences to the SCPPA bonds.This is due to the fact that the major party served by LAC is the DOE National Laboratory at Los Alamos,which is considered a private party under IRS regulations, and therefore the proposed arrangement would cause SCPPA bonds to become immediately taxable. SCPPA bond counsel maintained this opinion upon further review of the agreement between LAC and DOE, and upon discussions with LAC's bond counsel Sherman &Howard. Staff updated the Utility Board at its December meeting,and suggested the termination of further discussions with LAC. Staff sent LAC a letter stating this fact on December 30,2002 terminating the discussions. Staff will continue to explore other alternatives to diversify San Juan resource. Third Quarter Status: Fourth Quarter Status: Year End Disposition: I - - Schedule: Discussions with LAC terminated. Exploration of other alternatives continuing. Notes: 37 151 I AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Summer Peaking Resources Division: Power Resource Team Leader/Members: Richard Torres/Bob Tang/Tim Vuong Brief Description of Project: As contracts with the city of Pasadena and BPA for peaking power expire at the end of 2002 and 2003 respectively, the department will need to develop strategies to fill its summer peaking needs through new power contracts, ownership of generating assets, and/or demand side load management programs. At this time it appears that options through new power contracts and load management programs provide the most flexibility to manage city's peaking requirements. Funding Source: Account Number: First Quarter Status: Staff proceeded in procuring a 15 MW 4 year summer peak product from (June- September 2004-2007). Staff received bids from several counterparties who had established credit arrangements with the City. The successful counterparty was Duke Energy. Second Quarter Status: Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Completed. Notes: 38 152 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Renewable Resource Procurement Division: Power Resource Team Leader/Members: Bob Tang/Richard Torres/Tim Wong Brief Description of Project: As the state of California continues to consider the state's long term renewable energy strategy(perhaps establishing a renewable energy portfolio standard),the department will need to monitor and devise a strategy to face such potential challenges in the near future. Initial efforts will be taken to identify long-term sustainable funding mechanisms of potential renewable energy procurement(either due to legislative mandate or voluntary). Funding Source: Account Number: First Quarter Status: Staff has participated in the negotiations and reviewed the proposed contract with Pacific Power Marketing for the procurement of windpower under a 25-year contract as part of SCPPA joint procurement initiative. Discussions with a geothermal energy developer are also ongoing (also as part of SCPPA joint procurement initiative). The finalization of the contractual arrangements have been delayed by individual SCPPA member's timing in the adoption and decision in committing to these resources. Staff expects to have final decisions regarding these two projects within the first quarter of 2003. Second Quarter Status: Same as first quarter. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Ongoing. Notes: 39 153 I AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Retail Rates Revision Division: Power Resource Team Leader/Members: Bob Tang, Richard Torres, Tim Vuong Brief Description of Project: As the department's cost structure continues to face upward cost pressures due to(1) cost-of-living adjustment, (2) increased internal funding of capital projects, (3) additional socialized city costs, (4) uncertain and volatile electricity wholesale market, (5) uncertain cost implications of CAISO market as well as expiring transmission contracts with SCE,the department will need to revisit and revise its retail rates to reflect the current business environment. At the same time, the department will be to be cognizant of the increased competitive pressure from the investor-owned utilities (namely SCE in Azusa's case) once they complete the restructuring of their past debts in the foreseeable future(by mid-2003 in SCE's case). In light of the above, we need to devise a more flexible rate structure that can provide the department with the rate flexibility to face the unforeseen circumstances. Along these thoughts, the following rate structure may serve as.a"strawman": i I a. Incorporate a portion of the current one-cent per kWh charge permanently into the rate base to reflect the increased cost structure of the department. b. Create a quarterly updated power cost adjustment(PCA) mechanism to reflect the volatile nature of department wholesale power procurement costs (perhaps with a percent cap of how much the department can revise its PCA) Funding Source: Account Number: First Quarter Status: Five-year electric revenue requirement study completed. Proposed retail rate increase of 50/o implemented as of Oct. 1,2002. Second Quarter Status: Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Complete. Notes: 40 154 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Long Term Participation in the CAISO Markets Division: Power Resource Team Leader/Members: Bob Tang/Richard Torres/Tim Vuong Brief Description of Project: As the city's transmission contracts with Edison will expire at the end of 2002,the city must consider its participation in the CAISO market as PTO as a means to mitigate the almost certain increase in transmission costs. Funding Source: Account Number: First Quarter Status: Pertinent contractual arrangements were negotiated,completed,filed and have obtained the approval of FERC. Second Quarter Status: The implementation of CAISO new scheduling model incorporating city's transmission assets was successfully completed as of January 1,2003. Third Quarter Status: i Fourth Quarter Status: J Year End Disposition: Schedule: Completed. The City became a Participating Transmission Owner as of January 1,2003 on schedule. Notes: 41 15'5 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Contract Negotiations Division: Power Resource Team Leader/Members: Bob Tang/Richard Torres,Tim Vuong Brief Description of Project: The following contracts will need to be negotiated by the end of second quarter: (1) Scheduling Services Agreement with Salt River Project to provide the after-the-hour power resource scheduling services; and (2)An interconnection service agreement with Edison to specify the terms and conditions of the interconnection of the new substation with Edison's system. Funding Source: Account Number: First Quarter Status: Second Quarter Status: Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: This is a new project. Notes: 42 156 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Resolution of Regulatory Issues Division: Power Resource Team Leader/Members: Bob Tang/Richard Torres rim Vuong Brief Description of Project: The following regulatory issues involving the City are currently been subject to resolution by FERC: (1) City's Transmission Revenue Requirement (TRR); (2)The CAISO transmission access charge methodology; (3)The California electricity market redesign efforts.The Staff will actively participate in these proceedings to protect the City's interests. Funding Source: Account Number: First Quarter Status: Second Quarter Status: Third Quarter Status: Fourth Quarter Status: I Year End Disposition: Schedule: This is a new project. Notes: 43 157 AZUSA LIGHT & WATER DEPARTMENT Waste Management Division 44 158 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: MRF Program Division: Waste Management Team Leader/Members: Cary Kalscheuer Brief Description of Project: Process all solid waste collected in Azusa through Athens Services Material Recovery Facility or MRF to divert 13,000 tons annually. Funding Source: Refuse Rate I Account Number: 10-40-750-000-4722 First Quarter Status: 3,560.37 tons were diverted via MRF processing and incineration for quarter ending Sept.30,2002; incineration portion was 1,078.39 tons. Second Quarter Status: City achieved 53%waste diversion rate for 2001, in part due to this MRF Program. We anticipate submitting this rate to the State in January per the required annual reports due to the California Integrated Waste Management Board for calendar year 2001. 3,550.46 tons were diverted via MRF processing and incineration for quarter ending Dec. 31, 2002; incineration portion was 594.94 tons. Third Quarter Status: I Fourth Quarter Status: Year End Disposition: Schedule: Ongoing. Notes: 45 159 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Used Oil Recycling Block Grant Program Division: Waste Management Team Leader/Members: Cary Kalscheuer Brief Description of Project: Supply used oil recycling drain pans to State Certified Used Oil Collection Centers in Azusa. Promote use of these centers by residents through advertising. Funding Source: State block grant funds. Account Number: 28-40-750-062-4546 First Quarter Status: 2,736 gallons of used oil collected by 6 used oil collection centers; 70 used oil drain pans distributed by centers; advertisement designed and run 6 times over three months in Highland Newspaper. Grant funds applied for and received for this fiscal year. Second Quarter Status: 2,447 gallons.of used oil collected by 6 centers; 89 used oil drain pans distributed by centers; advertisement designed and run 6 times over three months in Highland Newspaper. Distribution of drain pans increased by 27%as a result of advertising. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Program continues on ongoing basis. Schedule: Report due to California Integrated Waste Management Board by August 15, 2003. Notes: 46 160 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: DOC Beverage Container Recycling Program Division: Waste Management Team Leader/Members: Cary Kalscheuer Brief Description of Project: Purchase compartmentalized recycling containers and promote their use by schools. Aluminum cans, plastic bottles, newspaper and mixed paper are the four commodities targeted through this program. Proceeds from recovery of these commodities will go to host school. Bins will be serviced by Athens Services. Funding Source: State Grant Account Number: 28-40-750-064-4540 First Quarter Status: 4.24 tons recovered by Athens at 3 schools. Second Quarter Status: 2.89 tons recovered by Athens at 3 schools. School district requested containers for 6 additional schools; purchase order issued with expected delivery in January 2003. Schools also requested funding for smaller containers. These items will be pursued after 6 new containers are received. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Notes: 47 161 i AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Dump that Junk Month Division: Waste Management Team Leader/Members: (See below"""under"Notes") Brief Description of Project: Sponsor and promote spring cleaning activities during the month of April, including throwing away junk at curbside; cleaning alleys; towing away old cars;throwing away household hazardous waste; and cleaning out city facility offices. Funding Source: AB 939 Fund Account Number: First Quarter Status: No action taken. Second Quarter Status: Arranged with Los Angeles County to have a household hazardous waste collection event in Azusa on April 12, 2003, at Northrop-Grumman Corporation facility in Azusa at West 3rd Street&Zachary Pedilla Avenue. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Schedule: Annually, in April. Notes: '=Following participated in planning and implementing activities last year: Rick Cole, Cary Kalscheuer, Bill Nakasone, Karen Vanca, Martin Quiroz, Tina Cravens, Dave Rudisel, and Jeff Reed. 48 162 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Green Waste Barrel Distribution Program Division: Waste Management Team Leader/Members: Cary Kalscheuer Brief Description of Project: Purchase 32 gallon green barrels and distribute them to single family residents to increase curbside disposal capacity for clean separation and collection of green waste. Funding Source: AB 939 Fund Account Number: 28-40-750-065-4450 First Quarter Status: Purchase order issued to Toter Incorporated for 6,400 barrels, including delivery of them to residents. Second Quarter Status: Deliveries began in October and were expected to be completed by end of month. Contractor had problems with mold which caused delay. Deliveries continued thru November I and December and most deliveries were believed to be complete before holidays. Diversion of yard j waste increased in November by 12%compared to same month prior year; December 2001 green waste tons were 187.22, and in December 2002 green tons rose 40%to 75.39. This saved about $2,800 in December on cost to MRF process this waste. Third Quarter Status: Some calls of missed deliveries have been received, and addresses have been forwarded to vendor for correction. I Fourth Quarter Status: i Year End Disposition: Schedule: Probably begin red tagging in March 2003 (see notes below). i Notes: City has discussed with Athens Services our desire to have Athens red tag city-provided yard waste barrels for non-pickup if they contain trash. Athens is open to this, and City will likely prepare article for Azusa Tomorrow to inform residents of this in advance of red tagging. 49 163 AZUSA LIGHT & WATER DEPARTMENT Water Operations Division 50 164 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: 30-inch pipeline in Dalton from Sierra Madre to 5th Division: Water Team Leader/Members: Chet F. Anderson, P.E. Brief Description of Project: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Funding Source: Water Fund Account Number: 32.-SO-000-721-71/72102B First Quarter Status: Project design underway. I i Second Quarter Status: Plans complete. Specs being prepared. Third Quarter Status: Specs will be complete and the project put out to public bid this quarter. Fourth Quarter Status: Year End Disposition: Construction will be bid in the third quarter of FY 2003. Schedule: Notes: 51 165 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Repairs to Sierra Madre Reservoir Division: Water Team Leader/Members: Chet F. Anderson, P.E. Brief Description of Project: Sierra Madre Reservoir is in need of repairs to the inside and outside of the reservoir. Funding Source: Water Fund Account Number: 32-80-000-721-71/72102C First Quarter Status: Second Quarter Status: Still not possible to drain the Sierra Madre Reservoir due to the continuing lack of rainfall this year and ongoing high water demand. Third Quarter Status: The inspection and repair of the Reservoir on hold until it rains. Fourth Quarter Status: Year End Disposition: Sierra Madre Reservoir repairs on hold until favorable (rainy) long term weather begins. Schedule: Notes: Budgeted with South Reservoir improvements. 52 166 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Rehabilitation of South Reservoir Division: Water Team Leader/Members: Chet F. Anderson, P.E. Brief Description of Project: South Reservoir will be analyzed by a structural engineer to determine if the reservoir is worth renovating or if it should be torn down and replaced. Funding Source: Water Fund Account Number: 32-80-000-721-71/72102C First Quarter Status: Proposals were accepted and a consultant was selected to do the analysis following Board approval. Due to the consultants lack of responsiveness a contract was never consummated. Second Quarter Status: The reservoir analysis has been put on hold due to the lack of rainfall this year and ongoing high water demand. Third Quarter Status: Another Request for Proposals to locate a consultant who will do this work will be necessary in the third or fourth quarter. Fourth Quarter Status: Year End Disposition: South Reservoir repairs on hold until favorable (rainy)weather begins.A new consultant will have to be located. Schedule: Notes: Budgeted with Sierra Madre Reservoir improvements. 53 167 i AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Spreading ground wells Division: Water I Team Leader/Members: Chet F. Anderson, P.E. Brief Description of Project: Installation of two wells in partnership with the County to enhance the County's ability to sluice the accumulated debris from Morris and San Gabriel Dams. Funding Source: Water Fund Account Number: 32-80-000-721-71/72101P First Quarter Status: Project delayed. Second Quarter Status: Project delayed.Talks held with the City of Pasadena to purchase the necessary property. Third Quarter Status: Fourth Quarter Status: 0 Year End Disposition: Sale and purchase of the pipeline alignment property and completion of the remaining pipeline. Schedule: Notes: 54 168 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Treatment plant sed basin and sludge lagoon design and construction Division: Water Team Leader/Members: Chet F. Anderson, P.E. Brief Description of Project: Treatment plant sed basin and sludge lagoon design and construction to enhance the performance of the water treatment plant. Funding Source: Water Fund Account Number: First Quarter Status: No progress Second Quarter Status: No progress Third Quarter Status: Project proposals will be requested from consultants Fourth Quarter Status: Year End Disposition: Facility design will be underway by the end of fiscal year. Schedule: Notes: 55 169 I AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Purchase replacement vehicles Division: Water Team Leader/Members: Chet F.Anderson, P.E. Brief Description of Project: Replace vehicles that have reached an advanced age and advanced state of wear. Funding Source: Water Fund Account Number: 32-80-000-721-71/7210217 First Quarter Status: Second Quarter Status: Some of the vehicles have been bid out and accepted. Third Quarter Status: Fourth Quarter Status: Vehicle delivery will be accepted. Year End Disposition: Vehicle orders will be completed. Schedule: Notes: 56 170 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Well 2 &3 discharge upgrade Division: Water Team Leader/Members: Chet F. Anderson, P.E. Brief Description of Project: Installation of piping to enhance the flow out of wells 2&3. Funding Source: Water Fund Account Number: 32-80-000-721-71[72101N First Quarter Status: Design and Construction of this project has been postponed due to pending construction of the Northern Transmission Main. Part of the Northern Main project will address the upgrades;once the Northern Main is placed in service, new operating conditions will dictate the - upgrades necessary for well 2 &3. Second Quarter Status: Northern Transmission Main bid. Third Quarter Status: Construction of Northern Transmission Main has begun. Fourth Quarter Status: Year End Disposition: On hold pending completion of Northern Transmission Main. Schedule: Notes: 57 171 AZUSA LIGHT & WATER DEPARTMENT CITY OF AZUSA FY2002-03 WORKPLAN Project Name: Distribution Main Upgrades Division: Water Team Leader/Members: Chet F.Anderson, P.E. Brief Description of Project: Replacement of water mains in the distribution system. Rollover from 2002 Funding Source: Water Fund Account Number: 32-80-000-721-7145/723101K &/72102G First Quarter Status: Project still in progress by Simich Construction. Liquidated damages have been accrued due to failure to meet the contract completion date. Second Quarter Status: Project substantially complete, and system in operation. Negotiating with contractor for final contract price. Third Quarter Status: Fourth Quarter Status: Year End Disposition: Project substantially complete. Negotiations with contractor will be finalized the third quarter. Schedule: Notes: 58 172