HomeMy WebLinkAbout25729AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AND
AZUSA CITY COUNCIL
AZUSA LIGHT & WATER
729 N. AZUSA AVENUE
AZUSA, CA 91702
AZUSA UTILITY BOARD
DIANE CHAGNON
CHAIRPERSON
DICK STANFORD
VICE CHAIRPERSON
CRISTINA C. MADRID
BOARD MEMBER
47
N�L1SA
MONDAY, JUNE 23, 2003
6:30 PM
DAVE HARDISON
BOARD MEMBER
IOSEPH R. ROCHA
BOARD MEMBER
6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council
• Call to Order
• Pledge to the Flag
• Roll Call
I., PUBLIC PARTICIPATION
(PersonlGroup shall be allowed to speak without Interruption up to rive (5) minutes maximum
time, subject to compliance with applicable meeting rules. Questions to the speaker or
responses to the speaker's questions or comments, shall be handled after the speaker has
completed his/her comments. Public Participation will he limited to sirty (60) minutes time.)
The Consent Calendar adopting the printed recommended action will be enacted with one vote. /f Staff or
Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under
SPECIAL CALL ITEMS.
001
1111. CONSENT CALENDAR
A.
A
E.
Minutes. Recommendation: Approve minutes of regular meeting and adjourned workshop meeting
of May 21, 2003, as written.
919
UB Minutes 5-21-03
UB Workshop
Minutes 05-21-03
Collection Asency Services Contract. Recommendation: Adopt resolution to award Caine & Weiner
for a five-year collection agency services contract to collect unpaid closed utility bills.
In
Collection Agency
Water Treatment Plant Pilot Study. Recommendation: Award contract to Kennedy/Jenks
Consultants in amount of $87,000 to conduct a Water Treatment Plant Pilot Study.
Water Treatment
Plant Pilot Study
Purchase of Trailer Mounted Diesel Generator. Recommendation: Award bid to MQ Power, Engine
and Equipment Division in amount of $65,407.89 to purchase Trailer Mounted Diesel Generator.
WINfl
Eai
Trailer Mounted
Diesel Generator
Inspection Service for Project W-183, Northern Transmission Line. Recommendation: Approve
addition of $20,000 to the contract amount of Wren &Associates for inspection services on project
W-183.
In
N.Trans Une Insp
Svc
Capital Improvement Project W-179. Foothill and Barranca. 12 -Inch Waterline.
Recommendation: Award contract to GCI Construction Inc. in amount of $543,583.70 for
construction of Project W-179.
ELI
W-170-Barranra &
Foothill
002
`%G. Construction Management and Inspection of Project W-185 Bin Dalton Wash Waterline
Crossing 12 -Inch Waterline. Recommendation: Award contract to Civiltec In amount of
$21,767.00 to manage construction and provide inspection services for Project W-185.
W-185 Big
Dalton.doc
H. Employee Lunch on luly 31 in Northside Park. Recommendation: Authorize funding in amount of
$1,500 to support the Employee/Utility Board Lunch on July 31 in Northside Park.
in
Enpbyee Lunch
III. SCHEDULED ITEMS
A. Metering Facilities Agreement and ISO Metered Entities Agreement. Recommendation: Approve
following agreements and authorize Mayor to execute the agreements upon preparation of the
execution copies:
1. Metering Facilities Agreement between Southern California Edison and the City
2. ISO Metered Entities Agreement between California Independent System Operator and the City
Metering
Agreements
B. Scheduling Services Agreement. Recommendation: Approve Scheduling Services Agreement
between the City and Salt River Project and authorize Mayor to execute the agreement upon
preparation of the execution copy.
Scheduling Svcs
Agreement
C. Wi FI Network and High Speed Internet Service Offering Analysis Proposal. Recommendation:
Approve RW Beck's proposal to conduct an analysis of a Wi FI Network and high-speed internet
service offering in amount not -to -exceed $24,000 and authorize staff to approve an additional
$8,100 to assess how homes in Monrovia Nursery project area can be Next Generation Broadband
Homes.
003
a,
IV. STAFF REPORTS/COMMUNICATIONS
A. San Gabriel River Projects Update
B. Meeting with San Gabriel Valley Municipal Water District on June 5, 2003
C. 4 -Year Projection of Water Supply
In
4 -Year Water Right
Projection
D. Substation Ground Breaking
E. Power Resources Division Monthly Report
In
Power Resources
Moly Rpt
F. Northern Gateway Monument
V. DIRECTORS' COMMENTS
A. Chairwoman Chagnon: Discussion and proposal on Utility Fund Transfer
B. Chairwoman Chagnon: SHARE Program
in
SHARE Program
C. Technology Allowance Policy
Technology
Allowance Policy
VI. CLOSED SESSION
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(a)
Southern California Edison Co. v. City of Azusa et al.
Case Number BC 281408
B. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(a)
City of Azusa Transmission Revenue Requirement
FERC Docket No. EL 03-14-000
4 004
7
A
VII. ADIOURNMENT
A. Adjourn.
%n compliance with the Americans with Disabilities Act, ifyou need special assistance to participate in
a city meeting, please contact the City Clerk at 626-8/1-5229. Notification three (3) working 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 "
SA*
CITY OF AZUSA
MINUTES OF THE REGULAR
t MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, MAY 21, 2003 - 6:30 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and time
in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue,
Azusa, California.
Chairperson Chagnon called the meeting to order.
Call to Order
ROLL CALL
Roll Call
PRESENT: COUNCILMEMBERS: HARDISON, STANFORD,ROCHA, CHAGNON, MADRID
ABSENT: COUNCILMEMBERS: NONE
ALSO PRESENT:
Also Present
City Attorney Ferre, City Manager Cole, Director of Utilities Hsu, Assistant to the Director of
Utilities Kalscheuer, Administrative Technician Yang, Assistant Director of Water Operations
Anderson, Assistant Director of Resource Management Tang, Senior Electric Engineer Langit, City
Clerk Mendoza.
Public Participation
Pub Part
None.
None
The CONSENT CALENDAR consisting of Items 11-A through 11-D, were approved by motion of
Con Cal
Councilmember Stanford, seconded by Mayor Pro -Tem Rocha, and unanimously carried.
Approved
A. The minutes of the regular meeting of April 28, 2003, were approved as written.
Min appvd
B. Formal bidding procedures were waived and the selection of the underwriter for the
Bond Fin
upcoming Bond Financing was awarded to UBS Paine Webber or its successor.
UBS Paine
Webber
C. The Electric and Water Utility Service Construction Standards and Specifications were Constr.
adopted to be used in constructing customer utility services. Stndrds J;_
Specs
HMO O
D. Approval was given to award bid to Engineered Plumbing in the amount of $86,614 for Engineered w
construction of water main, Project W-185, Big Dalton Wash Crossing. Plumbing
SPECIAL CALL ITEMS
None.
Scheduled Items
Special Call
None
Sched Items
Contract with PPM Energy, Inc. and Renewable Portfolio Standard. Contract w/
Assistant Director of Resource Management Tang presented the background of the Renewable PPM Energy
Portfolio Standard. Senate Bill 1078 became law January 1, 2003, and requires local publicly
owned utilities to establish and implement a renewable portfolio standard that recognizes the
Intent of the Legislature to encourage renewable resources, while taking into consideration the
effect on rates, reliability, financial resources, and the goal of environmental improvement. He
detailed the description of the resource selection process and provided a summary of the,
proposed agreement. He then answered questions posed by Councilmembers.
Moved by Councilmember Hardison seconded by Councilmember Stanford and unanimously to Contract
authorize Mayor to execute the agreement with PPOM Energy, Inc. once the final agreement is approved
prepared for purchase of three (3) megawatts of wind powered electrical energy and adopt the
Renewable Portfolio Standard for SB 1078 requirements.
Pro -Forma Netting Agreement with PacifiCorp Pro -Forma
Moved by Councilmember Stanford seconded by Mayor Pro -Tem Rocha and unanimously carried Netting
to approve the pro -forma netting agreement between the City and PacifiCorp and authorize the Agmt w/
Mayor to execute the agreement upon the preparation of the execution copy. PacifiCorp
Staff Reports/Communications Staff Rpts
Director of Utilities Hsu and Assistant Director of Resource Management Tang addressed the Update on
Power Resources Division Monthly Report highlighting the FERC Settlement of City's Transmission FERC Stlmt
Revenue Requirement (TRR), providing an update on a settlement discussion held earlier in the Agmt
day in which a settlement was reached of $1.89 million and a settlement agreement will be
drafted.
Report on Water Issues Pwr Res Rpt
Director of Utilities Hsu provided an update on a meeting held in City of Sierra Madre regarding Four Cities
the Four Cities Water District, and after discussion he noted that a meeting/workshop will be District
scheduled to talk about the benefits the district could give to each member city and reserve levels.
He suggested that a couple of the Councilmembers attend the meeting and agreed that he will
place the item on a future agenda to provide an update.
Bond Financing Status Report Bond Fin
Update
Director of Utilities Hsu provided an update on Bond Financing stating that the Bond Financing Util Dir
Team completed selection of the Underwriter, Financial Adviser and Bond Counsel. He stating
that the team has an aggressive agenda and will issue three series of bonds, one for water and
two for electric. Electric will have a taxable bond series and a tax exempt series. He stated that
the issue is complicated and detailed. The presentation, with all the documentation preparation
will be completed during the month of June.
5/21/03 PAGE TWO
007
Director's Comments
Dir Com
The following is an information item: 4`h of July Parade: Friday, July 4, 2003, at 10 a.m. at the 4th of July
Azusa Senior Center. Application forms are available at City Clerk and Chamber of Commerce
offices.
A short discussion was held regarding Special Events that will be discussed and acted upon at a Spec Evnts
future Council meeting.
CLOSED SESSION
It was consensus of Council to recess to Closed Session to discuss the following: Closed Sess
CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION SCE v.
Existing Litigation Government Code Section 54956.9(a) CITYCLERK
Southern California Edison Co. v. City o Azusa, et al.
Case Number BC 281408
Recess
The City Council recessed at 7:20 p.m. Reconvene
The City Council reconvened at 7:25 p.m.
No Rpts
There was no reportable action taken in Closed Session.
Adjourn
It was consensus of Councilmembers to adjourn to Workshop.
TIME OF ADJOURNMENT: 7:26 P.M.
SECRETARY
NEXT RESOLUTION NO. 03-C41.
05/21/03 PAGE THREE
lm
CITY OF AZUSA
MINUTES OF THE ADJOURNED WORKSHOP
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, MAY 21, 2003 - 7:30 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and time
in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue,
Azusa, California.
Chairperson Chagnon called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: COUNCILMEMBERS: HARDISON, STANFORD,ROCHA, CHAGNON, MADRID
ABSENT: COUNCILMEMBERS: NONE
ALSO PRESENT: Also Present
City Manager Cole, Director of Utilities Hsu, Assistant to the Director of Utilities Kalscheuer,
Administrative Technician Yang, Assistant Director of Water Operations Anderson, Assistant
Director of Electrical Operations Ramirez, Assistant Director of Resource Management Tang, City
Clerk Mendoza.
Public Participation Pub Part
None. None
Agenda Item —Fiscal Year 2003-2004 Budgets and 5 -Year Financial Projections. Utilities Director FY 03/04
Hsu introduced the Work Plan for FY 2003-2004, and provided a brief summary of each item Budget &
listed as follows: Fin Projection
1.
Electric Substation
7.
Customer Information System
2.
Revenue Bond Issuance
S.
Water Filtration Plant
3.
Electric Yard Building
9.
Underground Electric
4.
System Efficiency Improvement
10.
Water Mainline Replacements
5.
Improve Credit Ratings
11.
Well No. 10 Perchlorate Trmt
6.
Work Management System
12.
Reservoir Rehabilitation
ME •
He summarized Resources, Revenues, Uses, Expenditures, and addressed all divisions of the Light Presentation
and Water Department, which includes budgets and work plans for FY 03-04, and 5 -year financial Of Budgets
projection for electric and water utilities, and answered questions posed by Councilmembers. & Work Plans
FY 03-04
The Light & Water Financial Projections for FY 03-08 included the following: Light Fund 5 -year
Projections: Electric financial projections, Rate Implications, and Electric Rate Comparison. Water Projections
Fund Projections: Water financial projections, Rate Implications, Water Rate Comparison. Policy
Implications of Bond Financing on Retail Rate Setting were also discussed. Director of Utilities
indicated that rate adjustments for Electric and possibly Water would be proposed during a Public
Hearing at regular City Council meeting in June.
Director of Utilities Hsu further indicated that he would work with City Manager Cole, Chairperson Transfers &
Chagnon, Councilmember Standford, and Director of Finance Kenoyer on the utility fund Transfers Allocation
and budget cost allocation policy. Continued consideration of this policy will be presented at the Policy
June 2003 Utility Board Meeting.
Items discussed are attached to the May 21, 2003, Adjourned Regular Meeting of Utility Board Doc on File
Agenda.
it was consensus of Councilmembers to adjourn.
TIME OF ADJOURNMENT: 9:22 P.M.
SECRETARY
NEXT RESOLUTION NO. 03-C41.
05/21/03 PAGE TWO
Adjourn
010
:rr, B 6
!, M
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD.
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
1
DATE: JUNE 23, 2003
SUBJECT: RESOLUTION TO AWARD CONTRACT FOR COLLECTION AGENCY SERVICES TO
CAINE & WEINER
RECOMMENDATION
It is recommended that Caine & Weiner be awarded a five-year contract for collection agency
services for unpaid closed utility bills.
BACKGROUND
Azusa Light & Water has been using the same collection agency and contract since October
24, 1983. The maximum contract length allowed by the City's Purchasing Policies and
Procedures is five years. In January 2003, the Utility Board approved a request for proposals
process that culminated in the selection of Caine & Weiner. The process included a paper
review of responses and site visit to the two short listed collection agencies.
Caine & Weiner is a leading accounts receivable management services company, providing
service to 20% of the Fortune 500 companies and enjoys a high recovery rate. They use a
variety of collection tools including a team of experienced collectors, a collection procedure
designed to ensure that every account receives maximum handling and accountability,
reporting to credit reporting agencies, skip -tracing technology, and in-house attorneys. To
expedite debtor payments, Caine &Weiner offers credit card payment, Western Union,
Express Pay internet remittance, FedEx, personal check, cash, and Q -Check where a debtor's
check can be printed at the collection center for same day deposit. Caine & Weiner also uses
a software for collection notes and information that can also be accessed by our office so we
can view the information simultaneously.
References reported Caine &Weiner exceeds their expectations, provides excellent service, is
very responsive, provides excellent recovery results, and has had no debtor complaints due to
their contact. Caine & Weiner is also the lowest cost bidder.
FISCAL IMPACT
Compensation will be at the rates in Exhibit C of the attached Professional Services
Agreement.
Oil
Report Prepared by:
Karen Vanca, Assistant Director of Customer Care and Solutions
012
Reso re Coll
Caine & Weiner PSA
Agency.doc
6-03.doc
012
RESOLUTION NO.
A RESOLUTION O F THE AZUSA U TILITY B OARD/CITY
COUNCIL OF THE CITY OF AZUSA, AWARDING A
CONTRACT FOR COLLECTION OF DELINQUENT
UTILITY CUSTOMER ACCOUNTS TO CAINE & WEINER.
. WHEREAS, the Utility Board/City Council is empowered to impose
reasonable collection practices for a variety of utility services; and
WHEREAS, the Utility Board/City Council encourages and supports ways to
reduce costs without negatively impacting City residents and businesses; and
WHEREAS, Azusa Light & Water performed a fair competitive process and
analysis to select a collection agency; and
WHEREAS, Azusa Light & Water proposes awarding of a five-year contract
to Caine & Weiner for collection of delinquent utility customer accounts; and
WHEREAS, the Utility Board/City Council has determined that the proposed
agreement is based on staff analysis and recommendation.
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, DOES FIND AND DECLARE THAT:
Adoption of Contract. The Utility Board/City Council hereby adopts the
Contract For Collection of Delinquent Utility Customer Accounts and is incorporated
herein as set forth in full.
Effective Date. The agreement shall become effective on July 15,.2003.
PASSED, APPROVED AND ADOPTED this 23rd day of June 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 23rd day of June 2003, by the
following vote, to wit:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
Vera Mendoza
City Clerk
014
CITY OF AZUSA
PROFESSIONAL SERVICES AGREEMENT
I. PARTIES AND DATE.
This Agreement is made and entered into this _ day of , 20_ by
and between the City of Azusa, a municipal organization organized under the laws of the State
of California with its principal place of business at 213 East Foothill Boulevard, Azusa,
California 91702-1295 ("City") and Caine & Weiner, corporation, ("Consultant") with its
principal place of business at 15025 Oxnard St., Suite 100, Van Nuys, California 91411. City
and Consultant are sometimes individually referred to as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the City on the terms and conditions set forth in this
Agreement. Consultant represents that it is experienced in providing services for the collection
of delinquent customer accounts for public clients, is licensed in the State of California, and is
familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services as a collection agency for the
collection of delinquent customer accounts ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to
the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional collection agency consulting services
necessary for the Project ("Services"). The Services are more particularly described in Exhibit
"A" attached hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Agreement, the exhibits attached hereto and incorporated
herein by reference, and all applicable local, state and federal laws, rules and regulations.
RVPUBWGS\544364
015
3.1.2 Term. The term of this Agreement shall be from July 15, 2003 to July 14,
2008, unless earlier terminated as provided herein. Consultant shall complete the Services within
the term of this Agreement, and shall meet any other established schedules and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates• Independent Contractor. The
Services shall be performed by Consultant or under its supervision. Consultant will determine
the means, methods and details of performing the Services subject to the requirements of this ,
Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Consultant retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall also not be employees of City and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other
amounts due such personnel in connection with their performance of Services under this
Agreement and as required by law. Consultant shall be responsible for all reports and obligations
respecting such additional personnel, including, but not limited to: social security taxes, income
tax withholding, unemployment insurance, disability insurance, and workers' compensation
insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Consultant's conformance
with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon
request of City, Consultant shall provide a more detailed schedule of anticipated performance to
meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that
certain key personnel will perform and coordinate the Services under this Agreement. Should
one or more of such personnel become unavailable, Consultant may substitute other personnel of
at least equal competence upon written approval of City. In the event that City and Consultant
cannot agree as to the substitution of key personnel, City shall be entitled to terminate this
Agreement for cause. As discussed below, any personnel who fail or refuse to perform the
Services in a manner acceptable to the City, or who are determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a
threat to the safety of persons or property, shall be promptly removed from the Project by the
Consultant at the request of the City. The key personnel for performance of this Agreement are
as follows:
RVPU9VJGS1544364 `L
,I •
3.2.5 City's Representative. The City hereby designates the Assistant Director
Customer Care & Solutions, or his or her designee, to act as its representative for the
performance of this Agreement ("City's Representative"). City's Representative shall have the
power to act on behalf of the City for all purposes under this Contract. Consultant shall not
accept direction or orders from any person other than the City's Representative or his or her
designee.
3.2.6 Consultant's Representative. Consultant hereby designates Manager -
Client Services, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant's Representative"). Consultant's Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this Agreement.
The Consultant's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City
staff in the performance of Services and shall be available to City's staff, consultants and other
staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Consultant represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, and that such licenses and approvals shall be maintained throughout the term of this
Agreement. As provided for in the indemnification provisions of this Agreement, Consultant
shall perform, at its own cost and expense and without reimbursement from the City, any services
necessary to correct errors or omissions which are caused by the Consultant's failure to comply
with the standard of care provided for herein. Any employee of the Consultant or its sub-
consultants who is determined by the City to be uncooperative, incompetent, a threat to the
adequate or timely completion of the Project, a threat to the safety of persons or property, or any
employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be
promptly removed from the Project by the Consultant and shall not be re-employed to perform
any of the Services or to work on the Project.
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and
in compliance with all local, state and federal laws, rules and regulations in any manner affecting
the performance of the Project or the Services, including all Cal/OSHA requirements, and shall
give all notices required by law. Consultant shall be liable for all violations of such laws and
regulations in connection with Services. If the Consultant performs any work knowing it to be
contrary to such laws, rules and regulations and without giving written notice to the City,
RVPUBWGSl544364 3
017
Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend,
indemnify and hold City, its officials, directors, officers, employees and agents free and harmless,
pursuant to the indemnification provisions of this Agreement, from any claim or liability arising
out of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence
work under this Agreement until it has provided evidence satisfactory to the City that it has
secured all insurance required under this section. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the City that the subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Consultant, its agents, representatives, employees or subcontractors.
Consultant shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto);
and (3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as
required by the State of California and Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers' Compensation and Employer's Liability: Workers' Compensation limits as required by
the Labor Code of the State of California. Employer's Liability limits of $1,000,000 per accident
for bodily injury or disease.
3.2.10.3 Professional Liability Consultant shall procure and
maintain, and require its sub -consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to their
profession. Such insurance shall be in an amount not less than $1,000,000 per claim, and shall
be endorsed to include contractual liability.
RVPUBWGS�544364 4
E
3.2.10.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms supplied or
approved by the City to add the following provisions to the insurance policies:
(A) General Liabilitv. The general liability policy shall be
endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insured with respect to the Work or operations
performed by or on behalf of the Consultant, including materials, parts or equipment furnished in
connection with such work; and (2) the insurance coverage shall be primary insurance as respects
the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall
stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage. Any insurance or self-insurance maintained by the City, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall
not be called upon to contribute with it in any way.
(B) Automobile Liability. The automobile liability policy shall
be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be
primary insurance as respects the City, its directors, officials, officers, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's
scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its
directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the City, its directors, officials,
officers, employees, agents and volunteers for losses paid under the terms of the insurance policy
which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to the City; and (B) any failure to comply with reporting or other
provisions of the policies, including breaches of warranties, shall not affect coverage provided to
the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.5 Separation of Insureds,• No Special Limitations. All
insurance required by this Section shall contain standard separation of insureds provisions. In
addition, such insurance shall not contain any special limitations on the scope of protection
afforded to the City, its directors, officials, officers, employees, agents and volunteers.
RVPUBWGSl544364
5
019
3.2.10.6 Deductibles and Self -Insurance Retentions. Any
deductibles or self-insured retentions must be declared to and approved by the City. Consultant
shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects the City, its directors, officials, officers,
employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing
payment of losses and related investigation costs, claims and administrative and defense
expenses.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than ANIH, licensed to do business in
California, and satisfactory to the City.
3.2.10.8 Verification of Coverage. Consultant shall furnish City
with original certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage on its
behalf, and shall be on forms provided by the City if requested. All certificates and
endorsements must be received and approved by the City before work commences. The City
reserves the right to require complete, certified copies of all required insurance policies, at any
time.
3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant shall at
all times be in compliance with all applicable local, state and federal laws, rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed. Safety precautions as
applicable shall include, but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation for
all Services performed during the term of this Agreement shall not exceed an amount equal to
28% of all residential debts successfully collected by Consultant and 22% of all commercial
debts successfully collected by Consultant. Accounts will be referred to Consultant's attorney for
legal action only upon City's prior approval. An additional suit fee (10% of debt) will be the total
amount charged by the attorney for the legal action to collect the debt along with reasonable and
RVPUMNG044364
necessary out of pocket costs which will be subject to prior approval of the City. The City will .
also reimburse reasonable and necessary court costs. Extra Work may be authorized, as
described below, and if authorized, will be compensated at the rates and manner set forth in this
Agreement.
3.3.2 Payment of Compensation. Consultant shall hold debtor payments for two
weeks, then submit to City no later than monthly, along with itemized statements which indicate
itemized debts collected and total amount collected by Consultant. City shall, within 45 days of
receiving such statement, review the statement and pay all approved charges and commissions
due thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may
request that Consultant perform Extra Work. As used herein, 'Extra Work" means any work
which is determined by City to be necessary for the proper completion of the Project, but which
the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization
from City's Representative.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred under this Agreement. All such
records shall be clearly identifiable. Consultant shall allow a representative of City during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice to
Consultant, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Consultant of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Consultant shall be compensated only for those services which have been adequately rendered to
City, and Consultant shall be entitled to no further compensation. Consultant may not terminate
this Agreement except for cause.
RVPUBWGS�544364 7
021
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided
herein, City may require Consultant to provide all finished or unfinished Documents and Data
and other information of any kind prepared by Consultant in connection with the performance of
Services under this Agreement. Consultant shall be required to provide such document and other
information within thirty (30) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in
whole or in part as provided herein, City may procure, upon such terms and in such manner as it
may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
Consultant:
City:
Caine & Weiner
15025 Oxnard St., Suite, 100
Van Nuys, CA 91411
Attn: Bob Caine
City of Azusa
213 East Foothill Blvd.
Azusa, CA 91702-1295
Attn: Karen Vanca
Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at
its applicable address. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
RVPUBWGS%544364
022
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents & Data; Licensing of Intellectual Property. This
Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications, studies, drawings, estimates, and other documents or works of authorship fixed in
any tangible medium of expression, including but not limited to, physical drawings or data
magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be
prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require
all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license
for any Documents & Data the subcontractor prepares under this Agreement. Consultant
represents and warrants that Consultant has the legal right to license any and all Documents &
Data. Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to Consultant by
the City. City shall not be limited in any way in its use of the Documents and Data at any time,
provided that any such use not within the purposes intended by this Agreement shall be at City's
sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant in
connection with the performance of this Agreement shall be held confidential by Consultant.
Such materials shall not, without the prior written consent of City, be used by Consultant for any
purposes other than the performance of the Services. Nor shall such materials be disclosed to
any person or entity not connected with the performance of the Services or the Project. Nothing
furnished to Consultant which is otherwise known to Consultant or is generally known, or has
become known, to the related industry shall be deemed confidential. Consultant shall not use
City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or
the Project in any magazine, trade paper, newspaper, television or radio production or other
similar medium without the prior written consent of City.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising out of or in connection with this
Agreement, the prevailing party in such litigation shall be entitled to have and recover from the
losing party reasonable attorney's fees and all other costs of such action.
RVPUBWGS\644364 9
023
3.5.6 Indemnification. Consultant shall defend, indemnify and hold the City, its
officials, officers, employees, volunteers and agents free and harmless from any and all claims,
demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to
property or persons, including wrongful death, in any manner arising out of or incident to any
alleged acts, omissions or willful misconduct of Consultant, its officials, officers, employees,
agents, consultants and contractors arising out of or in connection with the performance of the
Services, the Project or this Agreement, including without limitation the payment of all
consequential damages and attorneys fees and other related costs and expenses. Consultant shall
defend, at Consultant's own cost, expense and risk, any and all such aforesaid suits, actions or
other legal proceedings of every kind that may be brought or instituted against City, its directors,
officials, officers, employees, agents or volunteers. Consultant shall pay and satisfy any
judgment, award or decree that may be rendered against City or its directors, officials, officers,
employees, agents or volunteers, in any such suit, action or other legal proceeding. Consultant
shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for
any and all legal expenses and costs incurred by each of them in connection therewith or in
enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be
restricted to insurance proceeds, if any, received by the City, its directors, officials officers,
employees, agents or volunteers.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the
State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of
this Agreement
3.5.10 City's Right to Employ Other Consultants. City reserves right to employ
other consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees;
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
RVPUBWGSl544364 10
024
3.5.13 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Consultant include all personnel, employees, agents, and
subcontractors of Consultant, except as otherwise specified in this Agreement. All references to
City include its elected officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content, or intent of this Agreement.
3.5.14 Amendment; Modification. No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel, or otherwise.
3.5.16 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.5.17 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. For breach or
violation of this warranty, City shall have the right to rescind this Agreement without liability.
For the term of this Agreement, no member, officer or employee of City, during the term of his or
her service with City, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or
applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related to
initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff
or termination. Consultant shall also comply with all relevant provisions of City's Minority
Business Enterprise program, Affirmative Action Plan or other related programs or guidelines
RVPUBWGS\544364 11
025
currently in effect or hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it
is aware of the provisions of Section 3700 of the California Labor Code which require every
employer to be insured against liability for Worker's Compensation or to undertake self-insurance
in accordance with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Consultant has all requisite power and.
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of
the work required by this Agreement, except as expressly stated herein, without prior written
approval of City. Subcontracts, if any, shall contain a provision making them subject to all
provisions stipulated in this Agreement.
CITY OF AZUSA [INSERT NAME OF CONSULTANT]
By:
Rick Cole
City Manager
Attest:
City Clerk
Approved as to Form:
Lo
Best Best & Krieger LLP
City Attorney
RVPUBWGS544364 12
Robert Caine
Chairman & CEO
026
ExnIBIT "A"
SCOPE OF SERVICES
Recover delinquent closed utility debts. Performance of the Services shall include, without
limitation, implementing the following collection tools: letter, predictive dialing technology to reach
debtors efficiently via phone, skip -tracing, reporting to credit reporting agencies and legal action,
when necessary and upon City s prior approval. Consultant shall offer debtors several payment
methods including, check, money order, credit card, over the phone using Q -Check, Western Union,
FedEx, and ExpressPay intemet remittance.
RVPUBWGSt544364
A-1
EXHIBIT "B"
SCHEDULE OF SERVICES
A list of delinquent closed utility debts will be transmitted to Caine & Weiner every one to two
weeks in the City's sole discretion. The number and frequency of such transmittals shall be
determined in the City's sole discretion. Nothing in this Agreement shall limit the right of the City to
pursue collection of debts by any other means in its sole discretion.
RVPUBWGSl544364
M
028
EXHIBIT "C"
COMPENSATION
Residential Debts Commercial Debts
28% 22%
These fees also apply to debts referred to Caine & Weiner's attorney. Legal action, however, will not
commence nor will costs be incurred without the City's prior approval. Once legal proceedings are
approved, an additional debt suit fee will be charged by the attorney in an amount equal to 10% of
the applicable debt along with reasonable and necessary out of pocket costs subject to City's prior
approval. The City will also pay applicable court costs. Court costs vary depending upon the
jurisdiction, but the average cost is $300 for Municipal and $500 for Superior Court.
RVPUBWGS\544364
C-1
029
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 23, 2003
SUBJECT: AWARD OF CONTRACT FOR CONSULTANT SERVICES, WATER TREATMENT
PLANT PILOT STUDY
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the award of contract to
Kennedy/Jenks Consultants to conduct a Water Treatment Plant Pilot Study.
BACKGROUND
The Water Division plans to build a new 12 million gallons per day (MGD) water treatment
plant in order to increase its present plant capacity of 7.5 MGD and to enable the Division to
meet the ever more stringent treatment requirements of the State Department of Health
Services. So that the proper treatment process is determined prior to the beginning of the
design of the new treatment plant, a pilot study must be conducted to aid in the selection of
the treatment process to be used in the new treatment plant. The estimated fees submitted
by the three proposing consultants are: Kennedy/Jenks Consultants, $87,000; Montgomery
Watson Harza, $96,506; and PBSB.J, $217,300. Proposals were received May 29, 2003.
FISCAL IMPACT
A budget item for this project has been approved by the Board in the FY 2002-2003 Capital
Budget and will be rolled over to Fiscal Year 2003-2004.
Prepared by:
Chet Anderson, Assistant Director of Water Operations
030
r%.
TO:
FROM:
DATE:
SUBJECT:
CONSENT CALENDAR
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
JOSEPH F. HSU, DIRECTOR OF UTILITIES
JUNE 23, 2003 v "
AWARD BID &AUTHORIZE PURCHASE OF TRAILER MOUNTED DIESEL
GENERATOR
RECOMMENDATION
It is recommended that the Utility Board/City Council accept the bids as received and award
the purchase of a Trailer Mounted Diesel Generator to MQ Power, Engine and Equipment
Division in the amount of $65,407.89.
BACKGROUND
At its regular meeting on April 28, 2003, the Utility Board/City Council approved the
specifications and authorized formal bidding for the above referenced equipment. As
directed, the City Clerk published a Notice Inviting Bids on May 9, 2003. Bid packages were
also mailed directly to known vendors.
The following bids were received and opened in the office of the City Clerk at 10:00 a.m.,
May 20, 2003:
Generator Services Co., Inc.
$ 49,950.00
MQ Power Engine & Equipment
$ 65,407.89
IPT Power Systems, Inc.
$ 69,500.00
Power System Associates
$105,690.97
Schwalm & Associates
$107,911.00
Following a thorough review of the bids, it was determined that the equipment represented by
the lowest bid did not meet the required specifications.
031
FISCAL IMPACT
Fiscal impact will be $65,407.89. Funds for this purchase are available in the Water Division's
CIP Budget.
Prepared by: Steve Seffer
Water Production Supervisor
032
TO:
FROM:
DATE:
SUBJECT:
CONSENT CALENDAR
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
JOSEPH F. HSU, DIRECTOR OF UTILITIES^
JUNE 23, 2003 vJ(
w
ADDITIONAL FUNDS TO THE CONTRACT OF WREN & ASSOCIATES FOR
INSPECTION ON W-183, NORTHERN TRANSMISSION LINE
RECOMMENDATION
Itis recommended that the Utility Board/City Council approve the addition of $20,000 to the
contract amount of Wren &Associates for inspection services on project
W-183.
BACKGROUND
Project W-183, the Northern Transmission Line, was due to be completed by May 20, 2003.
However, due to extra work required by the various entities along the pipeline alignment for
easements and licenses to install the pipeline, the project has moved more slowly than
anticipated, and more inspection time than anticipated has been necessary to assure the
proper installation of the pipeline. The base contract of $40,000 for inspection services for
this project was approved in September, 2002. An additional $10,000 was approved in April.
As this project is being funded by Miller Brewing, the cost of inspection is an expense that will
be fully reimbursed to the City by Miller once the total inspection cost is finalized.
FISCAL IMPACT
The fiscal impact of this payment is zero because the final inspection cost will be fully
reimbursed by Miller Brewing upon completion of Project W-183.
Prepared by:
Chet Anderson, Assistant Director- Water Operations
033
TO:
FROM:
DATE:
SUBJECT:
CONSENT CALENDAR
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
JOSEPH F. HSU, DIRECTOR OF UTILITIES
JUNE 23, 2003
AWARD OF CONTRACT FOR CAPITAL IMPROVEMENT PROJECT W-179,
FOOTHILL AND BARRANCA, 12 -INCH WATERLINE
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the award of contract to GCI
Construction Inc. for the construction of Project W-179, Barranca and Foothill, 12 -Inch
Waterline.
BACKGROUND
The Water Division has designed a water main, recommended in the 2000 Water Master Plan
Update, called the Barrranca and Foothill 12 -inch Waterline Project, to complete a loop of the
water system from Foothill Blvd. to Alosta Blvd. on the easternmost edge of the Azusa Water
System. GCI Construction's Bid for the construction of the project is $543,583.70. The bids of
the second and third low bidders were Valverde Construction, $580,300.50, and Majich
Construction, $597,712.50. Bids were publicly opened June 2, 2003.
FISCAL IMPACT
A budget item for this project has been approved by the Board in the FY 2002-2003 Capital
BudgeT and will be rolled over to Fiscal Year 2003-2004.
Prepared by:
Chet Anderson, Assistant Director of Water Operations
034
A.7USA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITI `
�1
DATE: JUNE 23, 2003
SUBJECT: AWARD OF CONTRACT FOR CONSTRUCTION MANAGEMENT AND INSPECTION
OF PROJECT W-185, BIG DALTON WASH WATERLINE CROSSING
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the award of contract to
Civiltec for the Construction Management and Inspection of Project W-185, Big Dalton Wash
Crossing, 12 -Inch Waterline.
BACKGROUND
The Big Dalton Wash Crossing waterline project was designed by Civiltec Engineering. To
assist the Water Division in the construction of the project, Civiltec has submitted a proposal
in the amount of $21,767.00 to manage the construction of the waterline and provide
inspection services for the project.
FISCAL IMPACT
The FY 2003-2004 blanket purchase order with Civiltec Engineers will cover the Construction
Management services for the project.
Prepared by:
Chet Anderson, Assistant Director of Water Operations
035
-rr LMA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESit
DATE: JUNE 23, 2003 �j
SUBJECT: EMPLOYEE LUNCH ON JULY 31 IN NORTHSIDE PARK
RECOMMENDATION
It is recommended that the Utility Board/City Council authorize funding in the amount of
$1,500 to support the Employee/Utility Board Lunch on July 31 in Northside Park.
BACKGROUND
For the past several years, the City and Utility have helped sponsor an Employee BBQ in July
to celebrate the anniversary of the City's acquisition of the Azusa Valley Water Company
(AVWC).
This year, in celebration of the 10"' Anniversary of the City's acquisition of the AVWC, In -and -
Out will provide a hamburger, chips and a drink to participating employees, for approximately
$1,500.
The event will be held in Northside Park from 11:30 a.m. to 1:30 p.m. on Thursday, July 31,
2003. All Utility Board Members are invited.
Activities are planned and will be carried out by our Recreations and Parks staff. O
FISCAL IMPACT
The cost for the lunch from In -and -Out is $1,500. Funding will come from the water fund,
account 32-40-721-766-6563.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Me,
fimm� Nok
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES;,-.,I-
DATE:
TILITIESDATE: JUNE 23, 2003
SUBJECT: APPROVALS OF METERING SERVICES AGREEMENT BETWEEN SOUTHERN
CALIFORNIA EDISON AND THE CITY, AND THE ISO METERED ENTITIES
AGREEMENT BETWEEN THE CAISO AND THE CITY
RECOMMENDATION
It is recommended that the Utility Board/City Council approve (1) the Metering Facilities
Agreement between Edison and the City; and (2) the ISO Metered Entities Agreement
between the California Independent System Operator (CAISO) and the City. It is further
recommended that Mayor execute the agreements upon the preparation of the execution
copies.
BACKGROUND
Since the inception of California electric industry deregulation, the City has operated
independently to schedule electric power with the California Independent System Operator
(CAISO) within California electric system. In order to settle CAISO market related charges, the
City is required to submit City's hourly electric consumption data in a timely manner, currently
on a monthly basis. The City currently obtains such hourly electric consumption data from
Edison's settlement quality meter located at Azusa's Substation. Pursuant to existing
contractual agreement between the City and Edison, Edison is to own, maintain, and provide
data from Edison's meter to the City, and the City is obligated to pay for such services under
the Wholesale Distribution Access Tariff.
Since January of this year, the City became a Participating Transmission Owner (PTO) in the
CAISO markets. As an additional requirement imposed on the PTO, the City is now required
to grant CAISO the access to City's hourly electric consumption data on a real time basis, and
upload the data directly into CAISO's settlement system on a daily basis. Thus the new CAISO
requirement will require the City to cause Edison to install new meters since the existing
meters do not have such capabilities.
The accompanying agreements between Edison and the City, and CAISO and the City will
037
enable the City to meet the new CAISO metering requirements.
Under the Metering Services Agreement, Edison will install and the City will pay for the new
meters at a one-time cost of $36,488 and a monthly service cost of $98.03. There is currently
no charge under the ISO Metered Entities Agreement between the CAISO and the City.
Entering into the agreements will enable the City to comply with CAISO metering
requirements.
FISCAL IMPACT
The one time cost of $36,488 will be assessed by Edison to install the new meters and there
is an ongoing monthly service charge of $98.03 for the service. Funds have been budgeted to
pay for this service in the Power Resource budget.
Prepared by: Bob Tang, Assistant Director Resource Management
In L,'J
City and SCE.doc City and ISO.pdf
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No.
DRAFT
METERING FACILITIES AGREEMENT
BETWEEN
CITY OF AZUSA
AND
SOUTHERN CALIFORNIA EDISON COMPANY
Title Page
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation -
Issued on: Effective:
039
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No.
1. Parties: ...............
2. Recitals: .............
3. Agreement:........
4. Definitions:........
Original Sheet No. 1
DRAFT
METERING FACILITIES AGREEMENT BETWEEN
CITY OF AZUSA
AND
SOUTHERN CALIFORNIA EDISON COMPANY
TABLE OF CONTENTS
.........................................................................................................................
5. Effective Date And Term: . ............................................................................................................
5
6. Agreement Pursuant To The WDAT:..........................................................................................6
7. Metering Facilities: ........................................................................................................................
6
8. Capital Additions: .........................................................................................................................
6
9. Removal Of Metering Facilities: ..................................................................................................
7
10. Other Taxes: ...................................................................................................................................
7
11. Meter Service Agreement for ISO Metered Entities: .................................................................
7
12. Charges: ..........................................................................................................................................
7
13. Billing And Payment: ....................................................................................................................
8
14. Addresses For Billing And Payment: .........................................................................................
10
15. Disputes: .......................................................................................................................................
11
16. Audits: ...........................................................................................................................................
11
17. Operating Representatives: ........................................................................................................
11
18. Regulatory Authority: .................................................................................................................
11
19. No Dedication Of Facilities: ........................................................................................................
12
20. No Third Party Rights: ...............................................................................................................
12
21. Relationship Of Parties :•..............................................................................................................12
22. Waivers: ........................................................................................................................................
12
23. Governing Law: ...........................................................................................................................
13
24. Notices: .........................................................................................................................................
13
25. Severability: .................................................................................................................................
13
26. Endre Agreement: .......................................................................................................................
13
27. Ambiguities: ..................................................................................................................................
13
28. Signature Clause: .........................................................................................................................
14
Manager, FERC Rates & Regulation
Issued on:
Effective:
Sodthem California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 2
101114mi
METERING FACILITIES AGREEMENT BETWEEN
CITY OF AZUSA
AND
SOUTHERN CALIFORNIA EDISON COMPANY
TABLE OF CONTENTS (CONT.)
Exhibit A. Metering Facilities Description: ................................................................................... 15
ExhibitB. Cost Estimate: ............................................................................. — ... — ......................... 16
Exhibit C. Metering Facilities Payment Schedule: ......................................................................... 17
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
041
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No.
DRAFT
Original Sheet No. 3
METERING FACILITIES AGREEMENT BETWEEN
CITY OF AZUSA
AND
SOUTHERN CALIFORNIA EDISON COMPANY
1. Parties:
The Parties to this Metering Facilities Agreement are City of Azusa, ("Azusa"), a California
municipal corporation and Southern California Edison Company ("SCE"), a California
corporation, hereinafter sometimes referred to individually as "Party and collectively as
"Parties."
2. Recitals:
This Agreement is made with reference to the following facts, among others:
2.1. SCE is a California public utility engaged in the business of generating and transmitting
electric energy in the States of Arizona, Cahfomia, Nevada, and New Mexico. SCE is
further engaged in the business of distributing such energy in the State of California.
2.2. Azusa is a California municipal corporation.
2.3. The Parties executed the Service Agreement for Wholesale Distribution Service dated
November 26, 1997 ("Service Agreement") that provides the terms for Distribution Service
SCE provides to Azusa, and the Transmission Substation Facilities Agreement ("TSFA")
dated December 27, 1996 that provides the terms to design, engineer, procure, construct,
install, own, operate, and maintain the Azusa Substation Facility.
2.4. Azusa requested that SCE replace the existing revenue metering at Azusa Substation with
ISO -approved meters and associated equipment, in order for Azusa to comply with ISO
Utility Distribution Company Iequirements.
2.5. The Parties desire to enter into this Agreement to specify the terms for SCE to engineer,
design, procure, construct, install, own, operate and maintain the Metering and for Azusa
to provide payment to SCE for such facilities.
3. Agreement:
In consideration of the premises and the mutual -covenants and agreements contained herein, the
Parties agree as follows:
Issued by: lames A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
not require
Sea metering does
not require replaents, it is for j
!ISO requirements, rG fa
!Azusa who needs ISO metering i
042
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 4
DRAFT
4. Definitions:
All temts with initial capitalization not otherwise defined herein shall have the meanings assigned
to them in SCE's WDAT as that Tariff may be amended from time to time. The following terms,
when used herein with initial capitalization, whether in the singular or the plural, shall have the
meanings specified:
4.1. Accounting Practice: Generally accepted accounting principles and practices applicable to
electric utility operations.
4.2. Agreement: This Metering Facilities Agreement between Azusa and Southern California
Edison Company.
4.3. Authorized Users: Defined by the Meter Service Agreement for ISO Metered Entities as
users authorized by the Metered Entity (Azusa) to access the meter data of that ISO
Metered Entity (Azusa) held by the ISO.
4.4. Capital Additions: Any Units of Property which are added to the Metering Facilities, the
enlargement, modification or betterment of any Units of Property constituting a part of the
Metering Facilities, or the replacement of any Units of Property constituting a part of the
Meter Facilities, irrespective of whether such replacement constitutes an enlargement,
modification or betterment of that which it replaces; the costs of which additions,
enlargements, modifications, betterments or replacements in accordance with Accounting
Practice would be capitalized and have not previously been included in the Metering
Facilities Cost.
4.5. Capital Additions Cost: All costs, excluding One -Time Cost, determined by SCE to be
associated with the design, engineering, procurement, construction and installation of
Capital Additions.
4.6. Capital Additions Payment: The sum of the Capital Additions Cost and associated One -
Time Cost.
4.7. CPUC: The California Public Utilities Commission, or its regulatory successor.
4.8. Customer -Financed Monthly Rate: The rate most recently adopted by the CPUC for
application to SCE's retail electric customers for customer -financed added facilities, which
does not compensate SCE for replacement of added facilities. Currently, this rate is 0.36%.
4.9. FERC: Federal Energy Regulatory Commission, or its regulatory successor.
4.10. ITCC: The Income Tax Component of Contribution specified in the Preliminary Statement,
Part M of SCE's tariff on file with the CPUC, applicable to the Metering Facilities Cost
and the Capital Addition Cost. An estimate of the ITCC applicable to the Metering
Facilities Cost is provided in Exhibit B.
4.11. Metering Facilities: Facilities, as specified in Exhibit A, owned by SCE, as such facilities
may be modified during the term of this Agreement.
4.12. Metering Facilities Charge: The monthly charge to Azusa to recover the revenue
requirements for the Metering Facilities, calculated as the product of the Customer -
Financed Monthly Rate and the Metering Facilities Cost.
4.13. Metering Facilities Cost: All costs, excluding ITCC and One -Time Cost, determined by
SCE to be associated with the design, engineering, procurement, construction and
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
nil
Southern California Edison Company _
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 5
DRAFT
installation of the Metering Facilities. An estimate of the Metering Facilities Cost is
provided in Exhibit B.
4.14. Metering Facilities In -Service Date: The date upon which the construction of the Metering
Facilities is complete and such facilities arc successfully tested and ready for service.
4.15. Metering Facilities Payment: The sum of the Metering Facilities Cost, associated ITCC,
and One -Time Cost. An estimate of the Metering Facilities Payment is provided in Exhibit
C.
4.16. Meter Service Agreement for ISO Metered Entities: The Agreement between Azusa and
ISO which allows the ISO to collect and transfer meter data.
4.17. One -Time Cost: All costs determined by SCE to be associated with the installation of
Capital Additions which are not capitalized.
4.18. Removal Cost: The actual cost SCE incurs for the removal of the Metering Facilities,
which is calculated as the amount, if positive, of the costs of removal minus the salvage
value of the Metering Facilities.
4.19. Service Agreement: The Service Agreement for Wholesale Distribution Service between
the Parties executed November 26, 1997, which provides for SCE to provide and for Azusa
to take and pay for Distribution Service in accordance with the provisions of the WDAT
and the Service Agreement.
4.20. Units of Property: As described in FERC's "List of Units of Property for Use in Connection
with Uniform System of Accounts Prescribed for Public Utilities and Licensees" in effect
as of the date of this Agreement, and as such list may be amended from time to time.
4.21. Azusa Substation: SCE's 66/12 kV Substation
4.22. WDAT: SCE's Wholesale Distribution Access Tariff.
5. Effective Date And Term:
5.1. This Agreement shall become effective upon the latter of (i) the execution of a Meter
Service Agreement for ISO Metered Entities between ISO and Azusa, or (ii) the effective
date ordered by FERC.
5.2. This Agreement shall terminate on the termination date of (i) the termination date of the
Service Agreement for Wholesale Distribution Service between SCE and Azusa, or (ii) the
date specified pursuant to Section 13.4.
5.3. Any obligations of one Parry to the other, including payment obligations, as a result of this
Agreement, which accrued prior to or as a result of termination of this Agreement, shall
survive termination.
5.4. Upon termination of this Agreement, Azusa shall pay SCE any remaining balance owed for
SCE's cost incurred or irrevocably committed to be incurred pursuant to this Agreement as
of the effective date of termination within sixty (60) calendar days following receipt of a
billing from SCE requiring such payment. Such billing shall reflect all payments received
by SCE, which shall be credited against the amount of SCE's costs and expenses incurred
or irrevocably committed to be incurred in accordance with this Agreement.
Issued by: lames A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
Comment: I agree an MFA
between SCE and Azusa in not
necessary. However an MFA
between ISO and Azusa is
required as per Heil
Shockey. This Agreement is
for ISO to collect and
transfer the meter data.
Azusa will need to include
SCE as an Authorize User in
order far SCS to access the
meter data.
TMA
Southern California Edison Company '
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 6
DRAFT
6. Agreement Pursuant To The WDAT:
This Agreement provides terms regarding Metering Facilities pursuant to the WDAT as such
Tariff may be amended from time to time. Accordingly, the rights and obligations of the Parties
pursuant to this Agreement are subject to applicable provisions of the WDAT, including without
limitation its provisions regarding indemnification and Force Majeure, in addition to the
provisions of this Agreement. In case of a conflict in the terms contained in this Agreement and
the terms in the WDAT, the terms of the WDAT shall apply. Azusa has read and is familiar with
the terms of the WDAT. I. ----- ------ - ------ ---
7. Metering Facilities:
7.1. SCE shall design, engineer, procure, construct, install, complete all required ISO
documentation, operate and maintain the Metering Facilities, pursuant to Good Utility
Practice and apply for any regulatory approvals necessary for the construction, operation
and maintenance of the Metering Facilities.
7.2. SCE shall own the Metering Facilities.
7.3. SCE shall perform or cause to be performed all ISO inspection, ISO required testing, ISO
certification and other work as required by the ISO for the Metering Facilities, metering
current transformers, metering potential transformers and appurtenant facilities.
7.4. SCE shall use commercially reasonable efforts to construct, successfully test and declare
ready for service the Metering Facilities on or before twelve (12) weeks after the effective
date of this Agreement. However, Azusa understands and acknowledges that such date is
only an estimate and that equipment and material lead times, labor availability, outage
coordination, regulatory approvals, or other unforeseen events could delay the actual in-
service date beyond that specified.
7.5. SCE shall control all access to the Metering Facilities within Azusa Substation.
7.6. Azusa shall be responsible for providing, maintaining, and paying for a dedicated
communication circuit that complies with the ISO Protocol and Tariff standards for the
purposes of transmitting the meter data to the ISO's metering data acquisition and
processing system.
8. Capital Additions:
8.1. SCE shall engineer, design, construct, install, own, operate and maintain all Capital
Additions pursuant to Good Utility Practice.
8.2. Except as otherwise provided in Section 8.3, whenever Capital Additions are required by
SCE pursuant to Good Utility Practice (which may include compliance with system or
regulatory requirements), Azusa shall pay all charges associated with such Capital
Additions in accordance with Section 12.
8.3. In the event that Capital Additions are required in order to benefit SCE, or because of
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
IEffective:
Issued on:
comment: I think that we
would be able to comply with
Section 13 of the wcAT. The
ISO meters will be used as a
revenue meters. The only
difference is that the
maintenance of the meter
will follow the ISO
Protocol.
045
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 7
DRAFT
damage caused by negligence or willful misconduct of SCE, Azusa shall not bear cost
responsibility for such Capital Additions. No adjustment will be made to the Metering
Facilities Cost and no Capital Additions Cost, ITCC, or One -Time Cost will be charged to
Azusa for such Capital Additions.
9. Removal Of Metering Facilities:
9.1. Following termination of this Agreement, SCE will remove the Metering Facilities from
service to Azusa.
9.2. On or before the date one year following termination of this Agreement, SCE shall notify
Azusa whether SCE intends to physically remove the Metering Facilities or any part
thereof. If SCE intends to physically remove the Metering Facilities or any part thereof,
then SCE shall physically remove such facilities within two years from the date of
notification of intent, and Azusa shall pay the Removal Cost in accordance with Sections
12.1 and 13.2. If SCE does not intend to physically remove the Metering Facilities or any
part thereof, then Azusa shall have no obligation to pay such Removal Cost.
10. Other Taxes:
Azusa shall be solely responsible for any taxes (including, but not limited to, property tax, sales
and use tax, excise tax, and document transfer tax) that are asserted against any payments or asset
transfers made by Azusa to SCE under this Agreement for Metering Facilities and Capital
Additions. SCE and Azusa shall cooperate in good faith to appeal, protest, seek abatement of, or
otherwise contest other taxes associated against payments or asset transfers made by Azusa to
SCE under this Agreement for Metering Facilities and Capital Additions.
11. Meter Service Agreement for ISO Metered Entities:
11.1. Upon the Metering Facilities In -Service Date, Azusa shall execute the Meter Service
Agreement for ISO Metered Entities.
11.2. SCE shall at all time be entitled access to the meter data, and Azusa shall provide any
authorization required, including, but not limited to, designating SCE as an Authorized
Users in the Meter Service Agreement for ISO Metered Entities.
11.3. Azusa shall provide SCE a copy of the executed and any future amendments of the Meter
Service Agreement for ISO Metered Entities.
12. Charges:
12.1. Azusa shall pay to SCE the following charges in accordance with this Agreement: (a)
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
Me
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. original Sheet No. 8
DRAFT
Metering Facilities Cost; (b) Metering Facilities Charge; (c) Capital Additions Payment; (d)
any reimbursable FERC fees pursuant to Section 18.3; (e) Removal Cost pursuant to
Section 13.2; (f) other taxes pursuant to Section 10.
12.2. The Metering Facilities Cost, Capital Additions Cost, One -Time Cost and Removal Cost
shall be compiled in accordance with Accounting Practice.
13. Billing And Payment:
13.1. Billing Procedure.
13.1.1. Except as otherwise specifically provided herein, commencing on or following the
effective date of this Agreement, SCE will render bills to Azusa for charges under this
Agreement, and Azusa shall pay such bills, in accordance with the Billing and
Payment provisions of the WDAT.
13.1.2. Azusa shall pay SCE the Metering Facilities Payment, according to the payment
schedule shown in Exhibit C. The amount of such Metering Facilities Payment is
based on SCE's cost estimates and shall be subject to later adjustment pursuant to
Sections 13.1.8.1 and 13.1.8.2.
13.1.3. Commencing on or following the Metering Facilities In -Service Date, SCE will render
bills to Azusa for the Metering Facilities Charge. The Metering Facilities Charge
payments shall be based on SCE's best estimate of the Metering Facilities Cost upon
the Metering Facilities In -Service Date (such cost estimate may differ from the
Metering Facilities Cost estimate set forth in Exhibit B), and such payments shall be
subject to later adjustment pursuant to Sections 13.1.8.3 and 13.1.8.4. The Metering
Facilities Charge for the first and last month of service shall be pro -rated based on the
number of days in which service was provided during said months.
13.1.4. SCE will bill Azusa for the Capital Additions Payment prior to commencing any work
on any Capital Additions in accordance with Section 8.2; provided that, at SCE's sole
discretion, SCE may bill Azusa for the Capital Additions Payment after commencing
such work if SCE determines that Capital Additions are required in accordance with
safety or regulatory requirements or to preserve system integrity or reliability. Such
billing shall initially be based on SCE's cost estimates and shall be subject to later
adjustment pursuant to Sections 13.1.8.1 and 13.1.8.2.
13.1.5. Except as otherwise provided in Section 8.3, if certain Metering Facilities are removed
to accommodate such Capital Additions and such removal results in a change in the
Metering Facilities Cost, the Metering Facilities Charge shall be adjusted as of the in-
service date of such Capital Additions to reflect the change in the Metering Facilities
Cost.
13.1.6. Except as otherwise provided in Section 8.3, if such Capital Additions result in an
increase in the Metering Facilities Cost, then the Metering Facilities Charge shall be
adjusted as of the in-service date of such Capital Additions to reflect the change in the
Metering Facilities Cost.
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
LITE
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 9
DRAFT
13.1.7. Commencing on the effective date of this Agreement, SCE will render bills to Azusa
for any reimbursable FERC fees in accordance with Section 18.3. Such billing shall be
for any reimbursable FERC fees or costs incurred since the preceding billing.
13.1.8. Within twelve (12) months following the Metering Facilities In -Service Date or the in-
service date of any Capital Additions, as the case may be, SCE shall determine the
actual recorded Metering Facilities Cost or the Capital Additions Cost, including the
associated One -Time Cost and ITCC, and provide Azusa with a final invoice.
13.1.8.1. If the amounts paid for the estimated Metering Facilities Payment or the
Capital Additions Payment are less than the amounts due for the Metering
Facilities Cost or the Capital Additions Payment as determined from the actual
recorded Metering Facilities Cost or the Capital Additions Cost, including the
associated One -Time Cost, SCE will bill Azusa for the difference between the
amounts previously paid by Azusa and the actual recorded costs, without
interest, within twenty (20) calendar days of the date of such invoice.
13.1.8.2. If the amounts paid for the estimated Metering Facilities Payment or the
Capital Additions Payment are greater than the amounts due for the Metering
Facilities Cost or the Capital Additions Payment as determined from the actual
recorded Metering Facilities Cost or the Capital Additions Cost, including the
associated One -Time Cost, SCE will refund Azusa the difference between the
amounts previously paid by Azusa and the actual recorded costs, without
interest, within twenty (20) calendar days of the date of such invoice.
13.1.8.3. If the amounts paid for the Metering Facilities Charge are less than the amounts
due for the Metering Facilities Charge as determined from the actual recorded
Metering Facilities Cost, SCE will bill Azusa for the difference between the
amounts previously paid by Azusa and the amounts which would have been
paid based on actual recorded costs, without interest, on the next regular
billing.
13.1.8.4. If the amounts paid for the Metering Facilities Charge are greater than the
amounts due for the Metering Facilities Charge as determined from the actual
recorded Metering Facilities Cost, SCE will credit Azusa the difference
between the amounts previously paid by Azusa and the amounts which would
have been paid based on actual recorded costs, without interest, on the next
regular billing.
13.1.9. Charges for payments upon termination shall be billed and paid as provided in Section
5.4
13.2. Removal Cost.
13.2.1. If, in accordance with Section 9.2, SCE decides to physically remove the Metering
Facilities, SCE shall render a bill to Azusa for the Removal Cost. Azusa shall pay
the Removal Cost in accordance with Section 13.1.1. Such billing shall be
initially based on SCE's estimate of the Removal Cost.. Within 12 months
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
M U.
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 10
FUT"
following the removal of the Metering Facilities, SCE shall determine the
recorded Removal Cost and provide Azusa with a final invoice.
13.2.2. If the amount paid for the Removal Cost is less than the amount due for the
Removal Cost as determined from the actual recorded Removal Cost, SCE will
bill Azusa for the difference between the amount previously paid by Azusa and
the amount which would have been paid based on actual recorded costs, without
interest, within twenty (20) calendar days of the date of such invoice.
13.2.3. If the amount paid for the Removal Cost is greater than the amount due for the
Removal Cost as determined from the actual recorded Removal Cost, SCE will
refund Azusa the difference between the amount previously paid by Azusa and the
amount which would have been paid based on actual recorded costs, without
interest, within twenty (20) calendar days of the date of such invoice.
13.3. Interest On Unpaid Balances.
Interest on any unpaid amounts shall be calculated in accordance with the methodology
specified in the Interest on Unpaid Balances provision of the WDAT.
13.4. Default And Billing Dispute.
Any default or billing dispute shall be handled in accordance with the methodology
specified in the Customer Default provision of the WDAT, including without limitation the
provision for termination upon default, subject to FERC approval.
14. Addresses For Billing And Payment:
14.1. All payments to be made by Azusa to SCE shall be sent to:
Southern California Edison Company
Accounts Receivable
Box 600
Rosemead, California 91770-0600
SCE may, at any time, by written notice to Azusa pursuant to Section 6 of the Service
Agreement for Wholesale Distribution Service, change the address to which payments will
be sent.
14.2. All billings to be presented by SCE to Azusa shall be sent to:
City of Azusa
Director of Utilities
729 North Azusa Avenue
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
ME
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. original Sheet No. 11
FIRM M
Azusa, California 91702
Azusa may, at any time, by written notice to SCE pursuant to Section 6 of the Service
Agreement for Wholesale Distribution Service, change the address to which billings will be
sent.
15. Disputes:
With the exception of any billing dispute as provided pursuant to Section 13.4 herein, or as
otherwise limited by law, the Dispute Resolution Procedures set forth in the WDAT shall apply to
all disputes between Azusa and SCE which arise under this Agreement; provided, however, that
the Dispute Resolution Procedures set forth in the WDAT shall not apply as to disputes regarding
whether rates and charges set forth in this Agreement are just and reasonable under the Federal
Power Act.
16. Audits:
16.1. SCE will maintain records and accounts of all costs incurred in sufficient detail to allow
verification of all costs incurred, including, but not limited to, labor and associated labor
burden, material and supplies, outside services, and administrative and general expenses.
16.2. Azusa shall have the right, upon reasonable notice, at a reasonable time at SCE's offices and
at its own expense, to audit SCE's records and accounts as necessary and as appropriate in
order to verify costs incurred by SCE. Any audit requested by Azusa shall be limited to the
costs reflected in the final invoice as set forth in Sections 13.1.8 or 13.2.1, and shall be
completed, and written notice of any audit dispute provided to SCE pursuant to Section 6 of
the Service Agreement, within one hundred eighty (180) calendar days following receipt by
Azusa of such final invoice.
17. Operating Representatives:
The responsibilities assigned to the Operating Representatives appointed pursuant to Section 13.4
of the Specifications for Wholesale Distribution Service attached to and incorporated within the
Service Agreement shall extend to the activities required under this Agreement.
18. Regulatory Authority:
18.1. No later than thirty (3 0) calendar days following the execution of this Agreement, SCE shall
tender this Agreement for filing with FERC with a request that it be made effective upon
acceptance without suspension, and Azusa shall support SCE in obtaining all necessary
authorizations and approvals for this Agreement.
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
050
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. original Sheet No. 12
DRAFT
18.2. Nothing contained herein shall be construed as affecting in any way: (i) the right of SCE to
unilaterally make application to the FERC for a change in rates, charges, classification, or
service, or any rule, regulation, or contract relating thereto, under Section 205 of the Federal
Power Act and pursuant to the Rules and Regulations promulgated by FERC thereunder; (ii)
the right of Azusa to oppose such changes under Section 205 of the Federal Power Act; (iii)
the right of Azusa to file a complaint requesting a change in rates, charges, classification, or
service, or any rule, regulation or contract relating thereto, or rate methodology or design
relating to services provided hereunder, under Section 206 of the Federal Power Act and
pursuant to the rules and regulations promulgated by the FERC thereunder; or (iv) the right
of SCE to oppose such complaint by Azusa under Section 206 of the Federal Power Act.
Any change shall become effective pursuant to Section 205 of the Federal Power Act.
18.3. Azusa shall reimburse SCE for all fees and charges imposed on SCE by the FERC
attributable to the service provided under this Agreement and the Service Agreement, of any
amendments thereto.
19. No Dedication Of Facilities:
Any undertaking by one Party to the other Party under this Agreement shall not constitute the
dedication of the electrical system or any portion thereof of the undertaking Party to the public or
to the other Party, and it is understood and agreed that any such undertaking by a Party shall cease
upon the termination of its obligations hereunder.
20. No Third Party Rights:
Unless otherwise specifically provided in this Agreement, the Parties do not intend to create rights
in or grant remedies to any third party as a beneficiary of this Agreement or of any duty, covenant,
obligation, or undertaking established hereunder.
21. Relationship Of Parties:
The covenants, obligations, and liabilities of the Parties are intended to be several and not joint or
collective, and nothing contained in this Agreement shall ever be construed to create an
association, joint venture, trust, or partnership, or to impose a trust or partnership covenant,
obligation, or liability on or with regard to either Party. Each Party shall be individually
responsible for its own covenants, obligations, and liabilities as provided in this Agreement.
Neither Party shall be under the control of or shall be deemed to control the other Party. Neither
Party shall be the agent of or have a right or power to bind the other Party without such other
Patty's express written consent.
22. Waivers:
Any waiver at any time by either Party of its rights with respect to a default under this Agreement,
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
051
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 13
or with respect to any other matter arising in connection with this Agreement, shall not be deemed
a waiver with respect to any other or subsequent default or other matter arising in connection
therewith. Any delay, short of any statutory period of limitation, in asserting or enforcing any
right, shall not be deemed a waiver of such right.
23. Governing Law:
Except as otherwise provided by federal law, this Agreement shall be governed by and construed
in accordance with, the laws of the state of California.
24. Notices:
Any notice, demand, or request provided in this Agreement, or served, given, or made in
connection with it, shall be made in accordance with Section 6 of the Service Agreement.
25. Severability:
In the event that any term, provision, covenant, or condition of this Agreement or the application
of any such term, covenant, or condition shall be held invalid as to any person, entity, or
circumstance by any court, arbitration, or regulatory authority having jurisdiction, the invalidity of
such term, covenant or condition shall not affect the validity of any other term, provision,
condition or covenant and such term, provision, covenant or condition shall remain in force and
effect as applied to this Agreement to the maximum extent permitted by law. The Parties hereto
further agree to negotiate in good faith to establish new and valid terms, conditions and covenants
to replace any found invalid so as to place each Party as nearly as possible in the position
contemplated by this Agreement.
26. Entire Agreement:
This Agreement and the Service Agreement constitute the complete and final expression of the
agreement between the Parties and are intended as a complete and exclusive statement of the
terms of their agreement which supersedes all prior and contemporaneous offers, promises,
representations, negotiations, discussions, communications, and other agreements which may have
been made in connection with the subject matter of this Agreement and the Service Agreement.
27. Ambiguities:
Ambiguities or uncertainties in the wording of this Agreement shall not be construed for or
against any Party, but will be construed in the manner that most accurately reflects the Parties'
intent as of the date they executed this Agreement.
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
052
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 14
DRAFT
28. Signature Clause:
The signatories hereto represent that they are authorized to enter into this Agreement on behalf of
the Party for whom they sign. This Agreement is hereby executed as of the _ day of
, 2003.
SOUTHERN CALIFORNIA EDISON COMPANY
Ey:
Name: Richard M. Rosenblum
Title: Senior Vice President
CTfY OF AZUSA
By: _
Name:
Title:
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
053
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 15
DRAFT
Exhibit A
Metering Facilities Description
Job Scope:
Install two (2) ISO meters replacing the existing revenue meters. Each ISO meter will communicate
with ISO MDAS via ECN (ISO secured network). The installation will be reviewed and inspected by
an ISO Inspector.
Job Description:
1. Replace the existing revenue meters with ISO meters for 2 lines.
2. Test switches will be installed for each ISO meter.
3. 1 router will be installed and configured to communicate with each ISO meter
4. The router will be connected to the ECN via a Lease Line.
5. Short -haul modems will be installed at the meter panel and router for each ISO meter.
6. All meters will be tested after installation.
7. Compile all require documents for ISO and copies for distribution.
Metering Facilities
1. 2 ISO approved meters
2. 2 test switches.
3. 4 short -haul modems
4. 1 router
5. 500 feet of communication cable
6. 250 feet of conduit
7. Document books
Issued by: James A. Cuillier '
Manager, FERC Rates & Regulation
Issued on: Effective:
054
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No.
DRAFT
Exhibit B
Cost Estimate
Original Sheet No. 16
Metering Facilities Charge
(Customer -Financed Monthly Rate x (Metering Facilities Costs)) = 0.0036 x $27,230 = $98.03
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
Comment: Have we confirmed
that the removal of the
existing metering will not
be treated as a one-time
costs billable to Azusa]
Comment: Removal of
existing metering is part of
the installation coat which
is a small $$ amount.
055
Meter
ITCC
One -Time
Total Cost
Element
Facilities Costs
Cost
Two (2) ISO meters. Each ISO meter will
communicate with ISO MDAS via ECN (ISO
secured network).
$27,230
$9,258
$36 488
Metering Facilities Charge
(Customer -Financed Monthly Rate x (Metering Facilities Costs)) = 0.0036 x $27,230 = $98.03
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on: Effective:
Comment: Have we confirmed
that the removal of the
existing metering will not
be treated as a one-time
costs billable to Azusa]
Comment: Removal of
existing metering is part of
the installation coat which
is a small $$ amount.
055
Southern California Edison Company
FERC Electric Tariff Original Volume No. 5
Service Agreement No. Original Sheet No. 17
DRAFT
Exhibit C
Metering Facilities Payment Schedule
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on:
Effective:
056
Metering
Facilities
Due Date
Payment
Upon Execution
of the Metering
Facilities
-Agreement
$36,488
Issued by: James A. Cuillier
Manager, FERC Rates & Regulation
Issued on:
Effective:
056
CALIFORNIA INDEPENDENT SYSTEM
OPERATOR
[ISO METERED ENTITY]
METER SERVICE AGREEMENT
FOR ISO METERED ENTITIES
057
saCAuronNIA.150
METER SERVICE AGREEMENTASOME
METER SERVICE AGREEMENT
FOR ISO METERED ENTITIES
THIS AGREEMENT is dated this _ day of _ and is entered into, by
and between:
(1) [Full legal name] having its registered and principal place of business
located at [Address] (the "ISO Metered Entity");
MIT*]
(2) California Independent System Operator Corporation, a California
nonprofit public benefit corporation having a principal executive office located
at such place in the State of California as the ISO Governing Board may from
time to time designate, initially 151 Blue Ravine Road, Folsom, California
95630 (the "ISO").
The ISO Metered Entity and the ISO are hereinafter referred to as the "Parties".
Whereas:
A. Section 10.3.1 of the ISO Tariff requires the ISO to establish meter service
agreements with ISO Metered Entities for the collection and transfer of Meter
Data.
B. Section 10.2.4 of the ISO Tariff further provides that an ISO Metered Entity shall
certify its revenue quality meters and Section 10.2.1 provides that ISO Metered
Entities shall make Meter Data available to MDAS.
C. The Parties are entering into this Agreement in order to establish the terms and
conditions upon which the ISO and the ISO Metered Entity shall discharge their
respective duties and responsibilities pursuant to this Agreement, and the ISO
Tariff.
D. All obligations and responsibilities included in this Agreement may be set forth in
further detail in the Metering Protocol of the ISO Tariff.
NOW THEREFORE, in consideration of the mutual covenants set forth herein, THE
PARTIES AGREE as follows:
ISO REV 03.0200
058
CALaronmA 150
METER SERVICE AGREEMENTASOME
ARTICLE I
DEFINITIONS AND INTERPRETATION
1.1 Master Definitions Supplement. Unless defined in Section 1.2 of this
Agreement, all terms and expressions used in this Agreement shall have the
same meaning as those contained in the Master Definitions Supplement to the
ISO Tariff.
1.2 Special Definitions for this Agreement. In this Agreement, the following words
and expressions shall have the meanings set forth below:
"Authorized Users" means users authorized by the ISO Metered Entity to
access the Meter Data of that ISO Metered Entity held by the ISO..
"ISO Authorized Inspector" has the meaning as defined in the Metering
Protocol of the ISO Tariff.
"ISO Metered Entity" means:
(a) any one of the following entities that is directly connected to the ISO
Controlled Grid:
a Generator other than a Generator that sells all of its Energy
(excluding any Energy consumed by auxiliary load equipment
electrically connected to that Generator at the same point) and
Ancillary Services to the UDC in whose Service Area it is located;
ii. an Eligible Customer; or
iii. an End -User other than an End -User that purchases all of its
Energy from the UDC in whose Service Area it is located; and
(b) any one of the following entities:
i. a Participating Generator;
ii. a Participating TO in relation to its Tie Point Meters with other TOs
or Control Areas; or
iii. a Participating Load.
"Metering Protocol" means the Protocol of the ISO Tariff on the subject of
revenue quality metering which sets forth requirements and procedures that ISO
Metered Entities, amongst others, shall meet and follow in order to comply with
their obligations under Section 10 and Appendix J of the ISO Tariff.
"MDAS" means the ISO revenue metering data acquisition and processing
system.
ISO REV 03.0200
2
059
CAUroamA 1550
METER SERVICE AGREEMENTASOME
"Metering Facilities" means revenue quality meters, instrument transformers,
secondary circuitry, secondary devices, meter data servers, related
communication facilities and other related local equipment.
"SC" means Scheduling Coordinator.
1.3 Rules of Interpretation. The following rules of interpretation and conventions
shall apply to this Agreement:
(a) if there is any inconsistency between this Agreement and the ISO Tariff,
the ISO Tariff will prevail to the extent of the inconsistency;
(b) the singular shall include the plural and vice versa;
(c) the masculine shall include the feminine and neutral and vice versa;
(d) "includes" or "including" shall mean "including without limitation";
(e) references to a section, article or schedule shall mean a section, article or
a schedule of this Agreement, as the case may be, unless the context
otherwise requires;
(f) a reference to a given agreement or instrument shall be a reference to
that agreement or instrument as modified, amended, supplemented or
restated through the date as of which such reference is made;
(g) unless the context otherwise requires, references to any law shall be
deemed references to such law as it may be amended, replaced or
restated from time to time;
(h) unless the context otherwise requires, any reference to a "person"
includes any individual, partnership, firm, company, corporation, joint
venture, trust, association, organization or other entity, in each case
whether or not having separate legal personality;
(i) unless the context otherwise requires, any reference to a Party includes a
reference to its permitted successors and assigns;
(j) any reference to a day, week, month or year is to a calendar day, week,
month or year;
(k) the captions and headings in this Agreement are inserted solely to
facilitate reference and shall have no bearing upon the interpretation of
any of the terms and conditions of this Agreement; and
(1) references to the Metering Protocol of the ISO Tariff and other ISO
Documents shall be interpreted in accordance with any exceptions or
exemptions to such as may have been granted by the ISO.
060
j CAUrohN1A 150
METER SERVICE AGREEMEM/ISOME
ARTICLE 11
TERM AND TERMINATION
2.1 Effective Date. This Agreement shall be effective as of the later of the date of
execution of this Agreement, or the date it is accepted and made effective by
FERC and shall remain in full force and effect until terminated by operation of
law or pursuant to Section 2.2 of this Agreement.
2.2 Termination
2.2.1 Termination by ISO. Subject to Section 4.2, the ISO may terminate this
Agreement by giving written notice of termination in the event that the ISO
Metered Entity commits any default under this Agreement and/or the ISO Tariff
which, if capable of being remedied, is not remedied within thirty (30) days after
the ISO has given it written notice of the default, unless excused by reason of
Uncontrollable Force in accordance with Section 15 of the ISO Tariff. With
respect to any notice of termination given pursuant to this Section, the ISO must
file a timely notice of termination with FERC. The filing of the notice of
termination by the ISO will be considered timely if: (1) the request to file a notice
of termination is made after the preconditions for termination have been met,
and (2) the ISO files the notice of termination within 30 days of receipt of such
request. This Agreement shall terminate upon acceptance by FERC of such
notice of termination.
2.2.2 Termination by ISO Metered Entity. In the event that the ISO Metered Entity
wishes to terminate this Agreement, the ISO Metered Entity shall give the ISO
ninety (90) days written notice. With respect to any notice of termination given
pursuant to this Section, the ISO must file a timely notice of termination with
FERC. The filing of the notice of termination by the ISO will be considered
timely if: (1) the request to file a notice of termination is made after the
preconditions for termination have been met, and (2) the ISO files the notice o1
termination within 30 days of receipt of such request. This Agreement shall
terminate upon acceptance by FERC of such notice of termination.
ARTICLE III
GENERAL TERMS AND CONDITIONS
3.1 Agreement Subject to ISO Tariff and ISO Metering Protocol. This Agreement
shall be subject to the provisions of the ISO Tariff which shall be deemed to be
incorporated herein, as the same may be changed or superseded from time to
time. The Parties agree that they will comply with the provisions of Section 10 of
the ISO Tariff and the Metering Protocol of the ISO Tariff.
ISO REV 03.0200
11
061
I" CAUrOWN1A ISO
METER SERVICE AGREEMENT/ISOME
3.2 Obligations and Rights of the ISO Metered Entity.
3.2.1 Submission of Meter Data through MDAS. The ISO Metered Entity agrees to
make available to the ISO through MDAS its Meter Data in accordance with the
ISO Tariff. The ISO's requirements regarding the frequency with which it
requires Meter Data to be made available to it through MDAS by the ISO
Metered Entity are referred to in the Metering Protocol of the ISO Tariff.
3.2.2 Meter Information. The ISO Metered Entity shall provide in the format
prescribed by Schedule 1 to this Agreement the required information with
respect to all of its meters used. to provide Meter Data to the ISO. The ISO
Metered Entity must immediately notify the ISO of any changes to the
information provided to the ISO in accordance with this Section 3.2.2 and
provide the ISO with any information in relation to such change as reasonably
requested by the ISO. The ISO Metered Entity shall have the right to modify
Schedule 1, which modification shall not constitute an amendment to this
Agreement. Such modification shall be effective upon receipt of notice by the
ISO.
3.2.3 Transformer and/or Line Loss Correction Factors. If the ISO Metered Entity
uses low voltage side metering, it shall use the ISO approved transformer and/or
line loss correction factor referred to in the Metering Protocol of the ISO Tariff.
3.2.4 Rights to Access Metering Facilities. The ISO Metered Entity shall use its
best efforts to procure any rights necessary for the ISO to access all Metering
Facilities of the ISO Metered Entity to fulfill its obligations under the ISO Tariff
and its obligations under this Agreement. If, after using its best efforts, the ISO
Metered Entity is unable to provide the ISO with such access rights, the ISO
Metered Entity shall ensure that one of its employees is an ISO Authorized
Inspector and such employee undertakes, at the ISO's request, the certification,
testing, inspection and/or auditing of those Metering Facilities in accordance
with the procedures established pursuant to the Metering Protocol of the ISO
Tariff, including the requirement to complete and provide to the ISO all
necessary documentation. The ISO acknowledges that it will not be prevented
from fulfilling its obligations under the ISO Tariff or this Agreement by reason of
the fact that it is provided with escorted access to the Metering Facilities of the
ISO Metered Entity.
3.2.5 Security and Validation Procedures. The security measures and the
validation, editing and estimation procedures that the ISO will apply to Meter
Data made available to the ISO by the ISO Metered Entity shall be as referred to
in the Metering Protocol of the ISO Tariff.
ISO REV 03.0200
5
062
CnuronmIA 150
No
3.3 Obligations and Rights of the ISO.
METER SERVICE AGREEMENTASOME
3.3.1 Direct Polling of MDAS. The ISO shall allow the SC representing the ISO
Metered Entity and all Authorized Users to directly poll MDAS for the Meter Data
relating to the ISO Metered Entity in accordance with the procedures referred to
in the Metering Protocol of the ISO Tariff.
3.3.2 ISO as Third -Party Beneficiary. The ISO shall be a third -party beneficiary to
any future agreement between the ISO Metered Entity and any other party
relating to the Metering Facilities of the ISO Metered Entity for the purpose of
granting the ISO access to any relevant information, records and facilities as
needed by the ISO to fulfill its obligations under the ISO Tariff and its obligations
under this Agreement.
3.3.3 Remote and Local Access to Metering Data. The ISO shall provide the ISO
Metered Entity any password or other requirements necessary for the ISO
Metered Entity to access its Metered Data remotely or locally at the Meter.
3.4 Exemptions Granted by the ISO. Any exemptions provided for under the ISO
Tariff that are granted by the ISO shall be set forth in Schedule 2 of this
Agreement. Any amendment or addition to Schedule 2 shall not constitute an
amendment to this Agreement.
ARTICLE IV
PENALTIES AND SANCTIONS
4.1 Penalties. If an ISO Metered Entity provides inaccurate or incorrect Meter Data
or fraudulent Meter Data to the ISO, the ISO shall be entitled to impose penalties
and sanctions, including but not limited to suspension of trading rights following
14 days written notice to the ISO Metered Entity. Fraudulent Meter Data means
any Meter Data provided to the ISO by the ISO Metered Entity that it knows to be
false, incorrect or incomplete at the time it provided that Meter Data to the ISO.
All penalties and sanctions shall be set forth in Schedule 4 Part A to this
Agreement. No penalties or sanctions, including suspension of trading rights,
may be imposed under this Agreement unless a Schedule providing for such
penalties or sanctions has first been filed with and made effective by FERC.
Nothing in the Agreement, with the exception of the provisions relating to ADR,
shall be construed as waiving the rights of the ISO Metered Entity to oppose or
protest any penalty proposed by the ISO to the FERC or the specific imposition
by the ISO of any FERC -approved penalty on the ISO Metered Entity.
4.2 Corrective Measures. If the ISO Metered Entity fails to meet or maintain the
standards for Metering Facilities or comply with the audit or test procedures as
referred to in the ISO Tariff, the ISO shall be permitted to take corrective
ISO REV 03.0200
063
j" CAurORNIA 150
METER SERVICE AGREEMENT/ISOME
measures. The corrective measures and rights the ISO may exercise upon any
failure by any entity to meet those standards for Metering Facilities or to comply
with the audit or test procedures shall be set forth in Schedule 4 Part B.
ARTICLE V
ACCESS TO METERING DATA
5.1 Authorized Users. In addition to the persons referred to in the ISO Tariff,
including the ISO Metered Entity and the relevant Scheduling Coordinator, as
being entitled to access Meter Data on MDAS, the ISO Metered Entity may set
forth in Schedule 3 of this Agreement any additional authorized users that shall
be entitled to access the ISO Metered Entity's Settlement Quality Meter Data
held by the ISO. The ISO Metered Entity shall include in Schedule 3 as
authorized users the relevant UDCs and TOs. The ISO shall provide the
authorized users with any password or other information necessary to access
the ISO Metered Entity's Settlement Quality Metered Data held by the ISO on
MDAS. Any amendment or addition to Schedule 3 shall not constitute an
amendment to this Agreement.
ARTICLE VI
COSTS
6.1 Certification, Inspection and Auditing of Meters. The ISO Metered Entity
shall be responsible for all reasonable costs incurred by the ISO or an ISO
Authorized Inspector in connection with them carrying out the certification,
inspection, testing or auditing of the meters identified in Schedule 1 from which
the ISO Metered Entity provides Meter Data to the ISO. The ISO or ISO
Authorized Inspector will furnish the ISO Metered Entity, upon request, an
itemized bill for such costs.
ARTICLE VII
DISPUTE RESOLUTION
7.1 Dispute Resolution. The Parties shall make reasonable efforts to settle all
disputes arising out of or in connection with this Agreement. In the event any
dispute is not settled, the Parties shall adhere to the ISO ADR Procedures set
forth in Section 13 of the ISO Tariff, which is incorporated by reference, except
that all reference in Section 13 of the ISO Tariff to Market Participants shall be
read as a reference to the ISO Metered Entities and references to the ISO Tariff
shall be read as references to this Agreement.
ISO REV 03.0200
064
CAuro KNiA 156
METER SERVICE AGREEMENTASOME
ARTICLE VIII
REPRESENTATIONS AND WARRANTIES
8.1 Representations and Warranties. Each Party represents and warrants that the
execution, delivery and performance of this Agreement by it has been duly
authorized by all necessary corporate and/or governmental actions, to the extent
authorized by law.
8.2 Necessary Approvals. The ISO Metered Entity represents that all necessary
approvals, permits, licenses, easements, right of way or access to install, own
and operate its meters have been or will be obtained by the ISO Metered Entity
prior to the effective date of this Agreement.
ARTICLE IX
LIABILITY AND INDEMNIFICATION
9.1 Liability and Indemnification. The provisions of Section 14 of the ISO Tariff
will apply to liability arising under this Agreement, except that all references in
Section 14 of the ISO Tariff to Market Participants shall be read as references to
the ISO Metered Entity and references to the ISO Tariff shall be read as
references to this Agreement.
ARTICLES X
UNCONTROLLABLE FORCES
10.1 Uncontrollable Forces Tariff Provisions. Section 15 of the ISO Tariff shall be
incorporated by reference into this Agreement except that all references in
Section 15 of the ISO Tariff to Market Participants shall be read as references to
the ISO Metered Entity and all references to the ISO Tariff shall be read as
references to this Agreement.
ARTICLE XI
MISCELLANEOUS
11.1 Assignments. Either Party may assign or transfer any or all of its rights and/or
obligations under this Agreement with the other Party's prior written consent in
accordance with Section 17 of the ISO Tariff. Such consent shall not be
unreasonably withheld. Any such transfer or assignment shall be conditioned
upon the successor in interest accepting the rights and/or obligations under this
Agreement as if said successor in interest was an original Party to this
Agreement.
ISO REV 03.0200
065
CAurORN1A 1$0
METER SERVICE AGREEMENTASOME
11.2 Notices. Any notice, demand or request which may be given to or made upon
either Party regarding this Agreement shall be made in accordance with Section
20.1 of the ISO Tariff. A Party must update the information in Schedule 5 as
information changes. Such changes shall not constitute an amendment to this
Agreement.
11.3 Waivers. Any waiver at any time by either Party of its rights with respect to any
default under this Agreement, or with respect to any other matter arising in
connection with this Agreement, shall not be deemed a waiver with respect to
any subsequent default or other matter arising in connection with this
Agreement. Any delay short of the statutory period of limitations, in asserting or
enforcing any right under this Agreement shall not constitute or be deemed a
waiver of such right.
11.4 Governing Law and Forum. This Agreement shall be deemed to be a contract
made under and for all purposes shall be governed by and construed in
accordance with the laws of the State of California, except its conflict of law
provisions. The Parties irrevocably consent that any legal action or proceeding
arising under or relating to this Agreement to which the ISO ADR Procedures do
not apply shall be brought in any of the following forums, as appropriate: any
court of the State of California, any federal court of the United States of America
located in the State of California or, where subject to its jurisdiction, before the
Federal Energy Regulatory Commission.
11.5 Consistency with Federal Laws and Regulations. This Agreement shall
incorporate by reference Section 20.8 of the ISO Tariff as if the references to the
ISO Tariff were referring to this Agreement.
11.6 Merger. This Agreement constitutes the complete and final agreement of the
Parties with respect to the subject matter hereto and supersedes all prior
agreements, whether written or oral, with respect to such subject matter.
11.7 Severability. If any term, covenant, or condition of this Agreement or the
application or effect of any such term, covenant, or condition is held invalid as to
any person, entity, or circumstance, or is determined to be unjust, unreasonable,
unlawful, imprudent, or otherwise not in the public interest by any court or
government agency of competent jurisdiction, then such term, covenant, or
condition shall remain in force and effect to the maximum extent permitted by
law, and all other terms, covenants, and conditions of this Agreement and their
application shall not be affected thereby, but shall remain in force and effect and
the parties shall be relieved of their obligations only to the extent necessary to
eliminate such regulatory. or other determination unless a court or governmental
agency of competent jurisdiction holds that such provisions are not separable
from all other provisions of this Agreement.
ISO REV 03.0200
CAUranmA 150
METER SERVICE AGREEMENT/ISOME
11.8 Amendments. This Agreement and the Schedules attached hereto may be
amended from time to time by the mutual agreement of the Parties in writing.
Amendments that are subject to FERC approval shall not take effect until FERC
has accepted such amendments for filing and has made them effective. If the
amendment does not require FERC approval, the amendment will be filed with
FERC for information.
11.9 Counterparts. This Agreement may be executed in one or more counterparts at
different times, each of which shall be regarded as an original and all of which,
taken together, shall constitute one and the same Agreement.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed on behalf of each by and through their authorized representatives as of the
date hereinabove written.
California Independent System Operator Corporation
By:
Name:
Title:
Date:
[Full legal name of ISO Metered Entity]
By:
Name:
Title:
Date:
ISO REV 03.0200
10
067
`y-`�`� CntaronnaA 150
SCHEDULE1
METER INFORMATION
[Section 3.3.21
Resource ID/Meter Number
Name of the Facility
Location (address if applicable)
ISO REV 03.0200
METER SERVICE AGREEMENTASOME
11
M
CAUPORNIA ISO
METER SERVICE AGREEMENTASOME
SCHEDULE2
EXEMPTIONS FROM METERING STANDARDS AND OTHER REQUIREMENTS
[Section 3.4]
ISO REV 03.0200
12
069
"moi Cnuronru^ 150
METER SERVICE AGREEMENTASOME
SCHEDULES
ACCESS TO METER DATA
AND
AUTHORIZED USERS
[Section 5.1]
List authorized users and any restrictions or limitations placed on them.
ISO REV 03.0200
13
070
� CAurortmA ISO
ISO REV 03.0200
METER SERVICE AGREEMENTASOME
SCHEDULE 4
PART A
ISO IMPOSED PENALTIES AND SANCTIONS
[Section 4.1]
[TO BE INSERTED UPON FERC APPROVAL]
PART B
CORRECTIVE MEASURES
[SECTION 4.21
[TO BE DEVELOPED]
14
071
G CAUrORNIA ISO
SCHEDULES
NOTICE
[Section 11.21
Name of Primary
Representative:
Title:
Address:
City/State/Zip Code
Email address:
Phone:
Fax:
Name of Alternative
Representative:
Title:
Address:
City/State/Zip Code
Email address:
Phone:
Fax:
ISO REV 03.0200
METER SERVICE AGREEMENTASOME
15
072
eALIPOI�NIA 1$<%
ISO:
Name of Primary
Representative:
Title:
Address:
City/State/Zip Code
Email address:
Phone:
Fax
Name of Alternative
Representative:
Title:
Address:
City/State/Zip Code
Email address:
Phone:
Fax:
ISO REV 03.0200
METER SERVICE AGREEMENT/ISOME
16
073
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 23, 2003
SUBJECT: APPROVAL OF SCHEDULING SERVICES AGREEMENT BETWEEN THE CITY AND
SALT RIVER PROJECT
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the Scheduling Services
Agreement between the City and Salt River Project (SRP) and authorize the Mayor to execute
the agreement upon the preparation of the execution copy.
BACKGROUND
Since the inception of California electric industry deregulation, the City has operated
independently to schedule electric power with the California Independent System Operator
(CAISO) and other wholesale market participants on a 24-hour a day, seven-day a week basis.
The City has consistently outsourced the after -the -hour power scheduling services to a third
party. SRP has been providing these services to the City since July, 1999 under a four-year
contract which will terminate on its own terms on June 30 of this year. SRP has provided
consistent and cost-effective services throughout this period of time.
Staff has concluded that the outsourcing of this service will continue to be the most cost-
effective way to serve our after -the -hour power scheduling needs at this time versus other
alternatives. Other alternatives considered include among others, the establishment of a 24-
hour office of our own, which will most likely entail hiring of at a minimum of four new staff
members to cover weekday off -hours and weekends, at an approximate costs of $500,000+
per year. Whereas the service from SRP is $2,100 per month.
SRP has agreed to provide the same service for two years commencing July 1, 2003 through
June 30, 2005 at the current service charge of $2,100/month, which is clearly the superior
alternative for the City.
FISCAL IMPACT
The cost for the services from SRP is $25,200 per year. Funds have been budgeted to pay for
this service.
Prepared by: Bob Tang, Assistant Director Resource Management
'd3aff'
..Formatted
SCHEDULING SERVICES AGREEMENT
BETWEEN
CITY OF AZUSA, CALIFORNIA
AND
SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND
POWER DISTRICT
075
,.draft.
TABLE OF CONTENTS
SECTION
TITLE
PAGE
1.
PARTIES
1
2.
RECITALS
1
3.
AGREEMENT
1
4.
DEFINITIONS
1
5.
TERM AND TERMINATION
2
6.
SCHEDULING SERVICES
2
7.
BILLING AND PAYMENT
2
8.
AUTHORIZED REPRESENTATIVES
3
9.
CONFIDENTIALITY
3
10.
UNCONTROLLABLEFORCES
4
11.
WAIVERS
4
12.
NOTICES
4
13.
TRANSFER OF INTEREST IN AGREEMENT
5
14.
SEVERABILITY
5
15.
NO DEDICATION OF FACILITIES
5
16.
THIRD PARTY BENEFICIARIES
5
17.
EVENTS OF DEFAULT AND TERMINATION
6
18.
LIABILITY
7
19.
FORWARD CONTRACTS
7
20.
OTHER AGREEMENTS
7
21.
GOVERNMING LAW AND VENUE
6,___ ------------ i
06/06/03 ii
076
"draft"
22. JUDGEMENTS AND DETERMINATIONS
..-- {oeletea:i
23. COMPLETE AGREEMENT
.--__
.--'t°' ----�
---
24. APPROVALS —__--_-- ----
b
_--
WITNESS)
------_...--
�-Deleted:8
EXHIBIT "A"
I
EXHIBIT "B"
06/06/03
OFFICIAL TITLES AND MAILING ADDRESSES
OF THE PARTIES
BILLING ADDRESSES OF THE PARTIES
iii
lo_-- .-- - — f. �eleted:9 1
hJ ...-��Deleted: to
077
I
13
14
Flt]
"draft"
SCHEDULING SERVICES AGREEMENT
BETWEEN
CITY OF AZUSA, CALIFORNIA
AND
SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND
POWER DISTRICT
PARTIES:
The Parties to this Scheduling Services Agreement (hereinafter referred to as
"Agreement") are the City of Azusa ("City"), a municipal corporation of the State
of California, and the Salt River Project Agricultural Improvement and Power
District ("SRP"), an agricultural improvement and power district organized and
existing under the laws of the State of Arizona. SRP and the City are hereinafter
sometimes referred to individually as "Party" and collectively as "Parties."
2. RECITALS:
2.1 The City is engaged in the purchase, sale and transmission of electric
power and energy in the Southwestern United States and distribution of
electric power and energy in the State of California. The City is a certified
Scheduling Coordinator and can conduct business with the California
Independent System Operator.
2.2 SRP is engaged in the generation of electric power and energy in the
States of Arizona, Colorado, Nevada and New Mexico, and the
transmission and distribution of electric power and energy in the State of
Arizona.
2.3 The City desires to purchase and SRP desires to sell Scheduling Services.
Accordingly, this agreement sets forth the terms and conditions to
implement scheduling services contained herein.
3. AGREEMENT:
In consideration of the mutual covenants and promises herein set forth, the parties
agree as follows:
4. DEFINITIONS:
The following terms, when used herein with initial capitalization, whether in the
singular or in the plural, shall have the meanings specified:
4.1 Authorized Representatives: A person designated by a Party pursuant to
Section 8 of this Agreement.
06/06/03
078
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
5.
21
"draft"
4.2 Scheduling Services: Services provided to the City by SRP as described
in Section 6.
4.3 Uncontrollable Force: Defined in Section 13.
TERM AND TERMINATION:
earlier by either Patty, this Agreement shall expire on June 30, 2005.
SCHEDULING SERVICES:
SRP shall provide to the City the following services:
6.1 Services include monitoring the City's wholesale transactions during the
hours other than 6:00a.m. to 5:00p.m. Pacific Prevailing Time Monday
through Thursday excluding City holidays.
For the time period specified in Section 6.1 SRP shall provide
6.2 daily telephone verification of the City's pre -scheduled
transactions with deliveries
6.3 real-time monitoring and adjustment of pr schedules in the event
the City's resources become unavailable due to real-time
transmission curtailment and/or forced generation outages
6.4 reporting of operation exceptions to the City daily.
For the services provided SRP shall bill and the City shall pay a fee of $2,100.00
per month during the term.
In order to receive the services set forth in this Section 6. the City must submit its
pie -schedule to SRV not later than pre -scheduling deadlioe of 1700pm Pacific
Prevailing Time before the next delivery day unless otherwise agreed to by SRP
and the City. l'he Citv acknowledges aucl agrees that SRP is. not_renuired to pre -
schedule anv of the City's transactions.
'llie Citv acknowled<res and agrees that SRP, inits sole and reasonably exercised
discretion spay delemtilie whether. to what extent _or under what conditions it
will provide the services set forth in this Section 6 without any liability.
llie City acknowledges and agrees that the services set forth in this Section 6 may
be curtailedunder certain conditions or circumstances the existence of which
shall be determined by SRP, in its sole and reasonablv exercised discretion.
7. BILLING AND PAYMENT:
06/06/03
t Deleted: This Agro mau shall become
effective on July 1, 2003 and shall
1 continue in force end etfmt dnough June
1 30, 2005.
079
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
8.
"draft"
7.1 The accounting and billing period for this Agreement shall be one (1)
month. Bills sent and any correspondence relating to billing inquiries
shall be sent to the appropriate billing address specified in Exhibit "B"
attached hereto and hereby made a part of this Agreement. The addresses
or addressees in Exhibit `B" may be changed at any time by ten (10) days'
written notice to the other Party given in the same manner as provided in
15.1 for other notices.
7.2 SRP shall invoice the City for scheduling services rendered as soon as
practicable after the first of the month following the month in which
services were provided.
7.3 The City shall pay SRP the amount billed within twenty (20) calendar
days after the date of the postmark of the bill. If the due date falls on a
weekend day or holiday, the bill shall be due on the next Business Day.
Payment shall be made by wire transfer to a bank selected by SRP or by
any other method which provides immediately available funds on the date
payment is due. Bills not paid in full when due shall thereafter bear an
interest charge accrued at the prime rate of interest (as established by the
Bank of America or its successor on the last Business Day of the month
for which the bill was submitted) plus 2 per cent per annum or the
maximum interest rate allowable under the law, whichever is less, prorated
daily from the date due to the date of payment.
AUTHORIZED REPRESENTATIVES:
As a means of securing effective and timely cooperation hereunder and as a
means of dealing on a prompt and orderly basis with various problems which may
arise in connection with system coordination and operation hereunder, the Parties
shall each appoint an Authorized Representative and an alternate to act in the
absence of the Authorized Representative.
8.1 The responsibilities of the Authorized Representatives are as follows:
8.1.1 To establish, review, approve, and/or modify procedures and
standard practices, consistent with the provisions hereof, for the
guidance of traders or power schedulers as to matters affecting
transactions hereunder.
8.1.2 To establish, review, approve, and/or modify any scheduling
procedures required in connection with transactions hereunder.
8.1.3 To do such other things and carry out such duties as specifically
required or authorized by this Agreement; provided, however, that
the Authorized Representatives shall have no authority to amend or
modify this Agreement.
8.2 Each Party shall give written notice to the other Party of the name of its
designated Authorized Representative and alternate Authorized
06/06/03
M19
MM
"'draft"
1
Representative within thirty (30) days after the date of execution of this
2
agreement. Notice of any change of Authorized Representative or
3
alternate Authorized Representative shall be given by written notice to the
4
other Party. Each Party's designated Authorized Representative shall be
5
authorized to act on behalf of such Party with respect to those
6
responsibilities provided herein.
7
8
9. CONFIDENTIALITY:
9
10
Provisions of this Agreement are strictly confidential between the Parties and
11
shall not be disclosed, except as required by law, without the prior written consent
12
of the other Party. Further, any information, methodology, data, programs and
13
software provided in support of transactions hereunder and designated as
14
"Confidential" by the providing Party is/are hereby acknowledged by the
15
receiving Party to he proprietary and/or confidential to the providing Party and
16
shall not be used, given, sold, transmitted, transferred, disclosed or communicated
17
by the receiving Party without the written consent of the providing Party. Unless
18
otherwise provided in writing by the Party electing the "Confidential" designation
19
pursuant to this Section, such confidentiality shall survive termination of this
20
Agreement and its affiliated documents for a period of two (2) years.
21
22
10. UNCONTROLLABLE FORCES:
23
24
Neither Party shall be considered to be in breach of this Agreement to the extent
25
that a failure to perform its obligations under this Agreement shall be due to an
26
Uncontrollable Force. The term "Uncontrollable Force" means any cause beyond
27
the control of the Party affected, including but not restricted to flood, drought,
28
earthquake, storm, fire, lighting, epidemic, war, riot, civil disturbance or
29
disobedience, labor dispute, labor or material shortage, sabotage, chance
30
I applicable law or tegulations, restraint by court order or public authority, and
31
action or nonaction by, or failure to obtain the necessary authorizations or
32
I approvals from, any governmental agency or authority which by exercise`of due __.-
+. Deleted: a J
33
diligence such Party could not reasonably have been expected to avoid and to the
34
extent which by exercise of due diligence it has been unable to overcome .------
`--"""""-
oetetzd: Nei be r� y aban, hove e ,
Mmlieved ofliability for failure of
35
Nothing contained herein shall be construed to require a Party to settle any strike
pe fo mavicem he umat hat au b
36
or labor dispute in which it may be involved. Either Party rendered unable to
i 8dare;a aae m e.asea o amg oat or;a
owv vegligrnce or due o cmovable or
37
fulfill any of its obligations by reason of an Uncontrollable Force shallg ive
!remediable coasts which it fall to
38
prompt notice of such fact to the other Party and shall exercise due diligence to
remove or remedy w h v a ea unable
39
remove such inability within a reasonable time period. If oral notice is provided,
° nCpC Oil —
40
it shall be promptly followed by written notice.
41
42
11. WAIVERS:
43
44
Any waiver at any time by any Party of its rights with respect to a default
45
hereunder, or any other matter hereunder, shall not be deemed a waiver with
46
respect to any subsequent default of the same or any other matter.
47
48
12. NOTICES:
49
06/06/03 4
MM
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
"draft"
12.1 Any formal notice, demand or request provided for in this Agreement shall
be in writing and shall be properly served, given or made if delivered in
person, or sent by either registered, overnight or certified mail, postage
prepaid, or overnight delivery service, to the persons specified in Exhibit
"A" attached hereto and made a part of this Agreement. Such notice may
also be made by facsimile, provided a hard copy is sent immediately by
U.S. mail or overnight delivery.
12.2 The designation of any person specified in Exhibit "A" or Exhibit "B", or
the address of any such person, may be changed at any time by giving
written notice in the same manner as provided in Section 14.3 for other
notices.
12.3 Notices and requests of a routine nature applicable to delivery or receipt of
power or energy or operation of facilities shall be given in such a manner
as the Authorized Representatives from time to time shall prescribe.
13. TRANSFER OF INTEREST IN AGREEMENT:
No voluntary transfer of this Agreement or the rights or obligations of either Party
under this Agreement shall be made without the written consent and approval of
the other Party..- - --- ---- -----------------
----------------- -
-----------
14. SEVERABILITY:
In the event that any of the terms, covenants or conditions of this Agreement or
the application of any such term, covenant or condition, shall be held invalid as to
any person or circumstance by any court having jurisdiction, all other terms,
covenants or conditions of this Agreement and their application shall not be
affected thereby, but shall remain in force and effect unless a court holds that the
provisions are not separable from all other provisions of this Agreement.
15. NO DEDICATION OF FACILITIES:
Any undertaking by one Party to the other Party under any provision of this
agreement shall not constitute the dedication of the electric system or any portion
thereof of the undertaking Party to the public or to the other Party, and it is
understood and agreed that any obligations of a Party under any provision of this
Agreement shall cease upon the termination of such Party's obligations as set
forth in the Agreement.
16. THIRD PARTY BENEFICIARIES:
This Agreement shall not be construed to create rights in, or to grant remedies to,
or delegate any duty, obligation or undertaking established herein to any third
party as a beneficiary of this Agreement.
17. EVENTS OF DEFAULT AND TERMINATION:
17.1 If an Event of Default (as defined below) occurs with respect to either
Party at any time during the Term, the other Party may upon thirty (30)
06/06/03
5
Deleted:,
Deleted: except to a sumessor in
interest of my Parry to this Agreement
provided, however, that either Parry may
transfer or assign this Agreement to an
affiliate of such Party, conditioned upon
(1) the provision of thirty (70) days prior
written notice to the other Parry and (2)
compliance by such affiliate with any
credit on security requirements imposed
pursuant to section 9. Any successor or
assigatee of the rights of either Party,
whether by voluntary trursfer, judicial or
foreclosure sale or otherwise, shall be
subject to all the provisions and
conditions of this Agreement to the same
extent as though such successor or
assignee were the original Party
hereunder, and no assignment or transfer
of my rights under this Agreement shall
be elfcctive unless and until the assignee
or trans&rte agrees in writing to assume
all of the obligations of the assignor or
transferor and to be bound by all of the
provisions and conditions of this
Agreement. The execution of a mortgage
or oust deed or ajudicial or foreclosure
sale made hereunder shall not be deemed
a voluntary transfer within the meaning
of this section 15.5 .
mm
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
".draft"
days written notice to the affected Party, which notice will be given no
later than sixty (60) days after the discovery of the occurrence of the Event
of Default, establish a date on which this Agreement will terminate; in
addition to termination, the terminating Party will have all its other rights
and remedies available under applicable law in equity arising from the
Event of Default.
17.2 "Event of Default' will mean with respect to a Party;
17.2.1 the failure by a Party to make, when due, any payment required
pursuant to this Agreement if such failure is not remedied within
seven (7) calendar days of receipt of written notice of such failure
by the Party; provided, that the payment is not the subject of a
good faith dispute, or
17.2.2 a material default or breach by the Party in the performance of any
of its material obligations to be performed under this Agreement if
such default or breach is not remedied within thirty (30) days of
receipt of written notice of such default or breach by the Party, or
17.2.3 the Party makes an assignment or any general arrangement for the
benefit of creditors; files a petition or otherwise commences,
authorizes or acquiesces in the commencement of a proceeding or
cause pursuant to any bankruptcy or similar law for the protection
of creditors, or has such petition filed against it and such
proceeding remains undismissed for sixty (60) days; otherwise
becomes bankrupt or insolvent (however evidenced); or is unable
to pay its debts as they fall due.
17.3 If a Party is prevented by Uncontrollable Force as set forth in Section,�"1�,0
from a material part of its obligations pursuant to this Agreement for more
than ninety (90) days, the Authorized Representatives shall meet within
five (5) business days of written notice from the other Party for the
purpose of determining an equitable settlement of the remaining
obligations of the Parties pursuant to this Agreement. If the Authorized
Representatives are unable to reach agreement within thirty (30) days of
said notice, the other Party not affected by the Uncontrollable Force may
terminate this Agreement upon thirty (30) days notice. This subsection
19.3 is in addition to other provisions of this Agreement providing for
termination of this Agreement.
18. LIABILITY:
NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR OTHER SPECIAL
DAMAGES FOR NONPERFORMANCE OF ITS OBLIGATIONS UNDER
THIS AGREEMENT.
--+ Deleted: A2
19. [M)FMNIFICATION AND RELEASF,:------------------------------------------- ..----'�De1eted: roawnrtnmxraacrs
06/06/03
083
15
16
CLa]
"draft"
The City agrees to be liable for and defend indemnify and hold harmless SRP, its
direclots officers employees agents and contractors, from any.and all costs,
expenses (includjm, anv aflotney fees and court costs), penalties, fines, clairns,
liabilities damages or Lgnienis arising out of this Agreement including any
claim forroroperty damage, peisonal iniu y or death or clamaec to any installation
or to the environment or arising oul of the Citv's breach of any of the City's
representations or warranties includim, where SRP may he allMed or proven to
have been negligent including but not limited to active. passive. sole_ joint,
concurrent comparative and contractual negligence but excluding the direct and
sole gross nc zlwealce and willful misconduct of SRP.
Phe Citv shall release SRP from any loss. dantige liability, cost or expense
arising out of this Agreement incurred by the City. caused by tate negligent acts
or omissions of SRP bill excluding the direct and sole gross negligence and
willful misconduct of SRP. a ,-.----
20. OTHER AGREEMENTS:
No provision of this Agreement shall preclude the Parties from entering into other
agreements or conducting transactions under existing agreements. This
Agreement shall not be deemed to modify or change any rights or obligations
under any prior contracts or agreements between the Parties.
21. GOVERING LAW AND VENUE:
This Agreement shall be construed in accordance with the laws of the State of
Arizona without regard to its conflict of laws and provisions. The Parties
stipulate that any proceeding in connection with this Agreement shall be brought
and prosecuted to completion before a state or federal court located in Maricopa
County, Arizona.
22. JUDGEMENTS AND DETERMINATIONS:
Whenever it is provided in this Agreement that a Party shall be the sole judge of
whether, to what extent, or under what conditions it will provide a given service,
its exercise of its judgment shall be final and not subject to challenge. Whenever
it is provided that a service under a given transaction may be curtailed under
certain conditions or circumstances, the existence of which are determined by or
in the judgment of a Party, that Party's determination or exercise of judgment
shallbe final and not subject to challenge if it is made in good faith and not
arbitrarily or capriciously.
23. COMPLETE AGREEMENT:
This Agreement shall constitute the full and complete agreement of the Parties
with respect to the subject matter hereof, and all prior or contemporaneous
representations, statements, negotiations, understandings and inducements are
fully merged and incorporated in the Agreement.
06/06/03
Deleted: The Parties acknowledge and
agree that all transactions under this
Agrtenent are forward contracts and that
the Parties art forward cootract
merchants, u those terms are used in the
United Sntultankuuptey Code. The
Parties acknowledge and agree that all of
their transactions, hereander form a
single, mtegnted agreement, and all
transactions are entemd into in reliance
oil the fact that all transactions form a
single agreement between the Parties.
MM
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
"draft"
This ALreement shall be considered for all purposes as prepared through ilie joint
efforts of the Paities and shall not be construed against one Patty or the other as a
result of preparation substitution submission or other event of ne,,otiation.
dratljng or execution hereof.
24. APPROVALS:
This Aere•ment is subieci to valid laws orders. rules and regulations of duly
constituted authorities having jutisdjetion Nothing, contained in this Agreement
shall Live iwisdiction over a Pam not otherwise subject lo such jurisdiction. or be
construed as a eraut of iurisdiction over either Party by anv state or federal agency
not otherwise having jurisdiction by law. Nothing, contained in this Aereement
shall be construed to establish any recedent for any other agreement ato Brant
any rights to or impose any obligation on either Party bevond the scone of this
Agreement.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of
the day of 2003.
AILII"It'
SALT RIVER PROJECT AGRICULTURAL
IMPROVEMENT AND POWER DISTRICT
Un
Title:
CITY OF AZUSA
Title:
8
085
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
"draft"
EXHIBIT "A"
Official Titles and Mailing Addresses
Of the Parties
Light and Water Department
City of Azusa
c/o Director of Utilities
729 N. Azusa Avenue
P.O. Box 9500
Azusa, California 91702-9500
Fax (626) 334-3163
Salt River Project Agricultural Improvement and Power District
c/o Corporate Secretary, PAB 215
P.O. Box 52025
Phoenix, Arizona 85072-2025
Fax (602)236-3458
If hand delivered:
Salt River Project Agricultural Improvement and Power District
c/o Corporate Secretary, PAB 215
1521 North Project Drive
Tempe, Arizona 86281
06/06/03
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
"draft"
EXHIBIT "B"
Billing Addresses of the Parties
Light and Water Department
City of Azusa
L`AssistantUilectoro£liesou e
729 N. Azusa Avenue
P.O. Box 9500
Azusa, California 91702-9500
Fax: (626)334-3163
Salt River Project Agricultural Improvement and Power District
Manager, Power Accounting Services, ISB 253
P.O. Box 52025
Phoenix, Arizona 85072-2025
Fax: (602)236-4579
06/06/03
10
1Deleted: goMmmilflute eted
4--7--TL-
11161b
Pbnnine
•
o '404
1 f 1
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES Tr
DATE: JUNE 23, 2003
SUBJECT: PROPOSAL BY R.W. BECK TO CONDUCT ANALYSIS OF WIRELESS FIDELITY
(Wi Fi) NETWORK WITH HIGH SPEED INTERNET SERVICE OFFERING
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve of RW Beck's proposal
dated June 18, 2003, in the amount not -to -exceed $24,000 to conduct an analysis of a Wi Fi
Network and high-speed internet service offering; and authorize staff to approve an additional
$8,100 to assess how homes in the Monrovia Nursery project area can be Next Generation
Broadband Homes.
BACKGROUND
At the April Utility Board meeting, the Board directed staff to work with RW Beck to conduct
an assessment of deploying a Wi Fi Network throughout the City. Staff met via telephone
with RW Beck to obtain a proposal from them on this additional analysis and their proposal is
attached for your consideration. RW Beck is partnering with Neteam to conduct this
assessment. Neteam is an Ohio based company with Wi Fi Network experience and is
familiar with Azusa.
The proposed study includes: (1) kick off meeting, site visit and tutorial—representatives from
Neteam will come to the City to examige its topography and suitability for Wi Fi and collect
data necessary to estimate the cost of constructing a Wi Fi Network. Representatives will also
provide a briefing to staff on how this technology is being used and deployed in other
communities. (2) RW Beck will estimate the capital and operating expenses required for the
City to offer retail high-speed internet and voice over internet protocol (VOIP) phone service.
VoIP will be examined on a self -provisioned basis and as that of a reseller. This will Include
cost to operate as an internet service provider (ISP). (3) RW Beck will create a financial pro
forma based on the market research they have already conducted for the City to determine if
it makes financial sense to proceed with this venture.
MM
Staff also requested RW Beck to consider what can be done to help create the Next
Generation Broadband Home in the Monrovia Nursery project area, and to consider how this
development might be used strategically to finance the growth of a broader telecom service
offering by the Utility. While RW Beck will consider the Monrovia Nursery development as
part of its Wi Fi assessment, in response to this request, RW Beck has proposed an optional
analysis specific to the Monrovia Nursery property. This includes consideration of a fiber to
the home network or hybrid fiber coax network (wired network) for the Monrovia Nursery
properties, under a strategy to capture a high percentage of the market share for cable and
other services. This analysis could be pursued after the Wi Fi assessment is completed and
only if the Wi Fi proforma shows some signs of financial viability. To carry out this optional
step, RW Beck will utilize NWS Communications (www.nwscorp.net) which is experienced in
doing assessments for greenfield developments, according to RW Beck.
FISCAL IMPACT
Cost proposal from RW Beck is $24,000, for the Wi Fi Assessment. The Monrovia Nursery
optional assessment is $8,100. Approval of this project is considered part of the existing
contract with RW Beck for the Telecommunications Feasibility Study, however, a new
purchase order will be issued using account number 33-40-739-230-6340 to cover the extra
work.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Federico Langit, Senior Electrical Engineer
Ann Graf, Acting Director of Information Technology
n
LJ
In
WIR Proposal
Exarrple l.pdf
Exarrple 2.doc
061803.pdf
E
June 18, 2003
via E-mail
Mr. Cary Kalscheuer
Assistant to the Director of Utilities
Azusa Light and Water
729 N. Azusa Avenue.
Azusa, CA 91702-9500
Subject: Revised WiFi Analysis Proposal
Dear Cary.
On May 13, 2003, R. W. Beck submitted a proposal to the City of Azusa ("City") for an additional task
to our current contract for the purposes of completing a high-level WiFi Technical and Financial
Analysis. The focus of this task was the provision of high-speed Internet and data services over Wireless
Fidelity (WiFi) technology. Subsequently, your letter of June 11, 2003 indicated additional concerns and
requirements for this task addition. Based on this letter and our follow-up telephone conversation, we
understand the additional requirements to be the following:
■ The Monrovia Nursery Development project is to be included in the footprint of the
proposed WiFi Network. The CPE for provision of services over the WiFi network must be
separately delineated, as this may be included in the cost of the housing units. The network
design should accommodate a 100 percent subscription penetration from Monrovia housing
units.
■ The City is interested in using the WiFi Network for as many types of services as the
network can accommodate. These include High -Speed Internet, Voice over Internet Protocol
(VoIP), monitored security services and the data transmission portion of automated meter
reading.
■ The City would like a financial analysis (pro forma) which includes the revenue, capital and
operating costs of providing Internet, VoIP and security services over WiFi.
■ The final report should include a discussion of the Customer Premise Equipment (CPE) that
is required, including the type of CPE required for each service and the extent to which that
CPE is required separately for each business or housing unit.
■ From our telephone conversation, there appears to be interest in a separate wired Broadband
(Fiber -to -the -Home - FTTH or Hybrid Fiber Coax - HFC) analysis of the Monrovia Nursery
Development to create fully broadband equipped homes with subscription television, high-
speed Internet and VoIP provided by the City.
T:\Telecom Proposals\AuaVs a WiFi Proposah2nd Revised WiFi Proposal 061803.doc
1125 Seventeenth Street, Suite 1900 Denver. CO 80202-2615 Phone (303) 299-5200 Fax (30 3) 297-2811
Mr. Cary Kalscheuer
June 18, 2003
Page 2
In considering these additions or expansions, we would like to make two observations. First, the
type of security monitoring that has been done over WiFi is pore focused on surveillance
monitoring than on home alarm systems. For example, video surveillance via WiFi is being
deployed in airports around the nation as part of Homeland Security initiatives. This is not the
same as the alarm security monitoring tested in the market research and for which substantial
interest was shown. As there are not proven examples of use of WiFi for alarm monitoring, we
suggest that this not be included in the WiFi analysis. If at a future date the City finds demand
from area businesses for video monitoring, this can always be added as an additional service.
Second, as the City is still exploring its options, it appears that it would like the ability to look at
different entry strategies (e.g., fiber versus WiFi for Monrovia, third -party versus self -
provisioning of VOIP, etc.) and timing (staging) of offering the various services. For this reason,
we propose that we complete the core WiFi work as outlined below at a fixed fee and offer
additional analyses and iterations on a time and expense basis. This will allow the City to
rapidly obtain the basic answers on WiFi feasibility and the flexibility for additional fine tuning
of strategy or exploration of alternatives as desired.
The proposed core WiFi study is a high-level financial analysis (pro forma) which includes what
we believe to be the most likely service configuration:
■ Deployment and operation of a WiFi network to cover of the City of Azusa, including the
proposed Monrovia Nursery Housing Development
■ Deployment and operation of retail high-speed Internet service over the WiFi network
■ Deployment of VoIP using the WiFi network and either City provisioning of the complete
Vole service or use of a third party vendor for completion of calls world-wide
■ In addition (not included in the pro forma), the study includes an estimate of the CPE costs
associated with use of the WiFi network for Automated Meter Reading (AMR)
An optional study for the deployment of a "greenfield" wired FTTH or HFC network in the
Monrovia Nursery Housing Development is also offered. This study will presume that the City is
the primary provider of cable television services and cable modem Internet Services.
SCOPE OF SERVICES
The revised Scope of Services is as follows:
TASK 1: KICKOFF MEETING, SITE VISIT AND TUTORIAL
This task will begin with a kickoff meeting led by the R. W. Beck lead consultant for this
project, Steven Brodsky. In this one-hour meeting, we will review and obtain final concurrence
with the City project coordinator(s) on the objectives, process and time frames for the study and
we will introduce key R.W. Beck Project Team members (including the NeTeam representative).
T:\Telecom Proposals\Aa \Az WiFi ProposaMnd Revised WiFi Proposal 061803.doo
Mr. Cary Kalscheuer
June 18, 2003
Page 3
A team of WiFi technical specialists will come to Azusa to determine the high-level network
design for a City-wide WiFi system. The team will examine the topography and other elements
impacting the deployment of a wireless broadband system as well as determine potential antenna
sites, including consideration of the ability to use existing buildings and structures, proximity to
the fiber network and network coverage of the City. The team will also address the methods and
high-level design for covering the foothill portions of the City.
For this visit, we request a "host" from the City that is familiar with the location of the fiber,
City owned facilities, City limits and local sensitivities that might impact placement of the
primary antennas.
In addition to the site visit, members of this team will be available to give a one-hour tutorial at
the close of their visit. This tutorial will cover the WiFi technology and give examples of its
deployment. Time will be included to answer participant questions. It is anticipated that this
tutorial will be for a smaller group of individuals that are interested in the specifics of the
technology.
TASK 2: CAPITAL AND EXPENSE ESTIMATES
Based on the Site Visit and the Project Team's experience in deploying the services listed for the
Core Study, we will estimate the capital and expenses required for the City to offer retail high-
speed Internet and VOIP services as described in the Core Study above using WiFi technology.
This includes the following:
a. Construction and Operation of the Wireless Distribution Network
Costs will be estimated for all aspects of the local WiFi network over which the services
will be offered, including RF design and installation, tower construction (if required), RF
equipment and customer premise equipment (CPE). Through discussions with the utility,
we will determine if it is feasible and desirable for the utility to perform the tower
construction (if required) and antenna or customer installations, and the costs will be
modified accordingly.
b. Components and Operation of the ISP Business
ISP operations are virtually the same, regardless of the type of distribution network. ISP
costs include the upstream Internet feed, domain hosting (the ability to host the
` xxx.com" site that a business customer requires for its .website and e-mail), web
hosting, e-mail, Domain Naming System (DNS) registration, customer service and
billing. It will also include the network elements separate from the wireless transmission
that are required to function as an ISP, including core router(s), the DNS, email and web
servers as well as any applications needed to manage and support an SP operation.
Additional personnel requirements will also be included.
T:\Telecom Proposals\An \Az WiFi Pmpom1Qnd ReviscdW R Proposal 061803.doc
092
Mr. Cary Kalscheuer
June 18, 2003
Page 4
C. Voice over Internet Protocol
The costs associated with providing VoIP will be developed for two different entry
strategies. In the first strategy, the City of Azusa would act as a reseller or agent for
nation-wide or world-wide VOIP services provided by a third party. The Project Team
will identify the WiFi network, CPE, operations and marketing costs for the City's
offering of this VoIP service over the WiFi network. The alternative strategy is for the
City of Azusa to completely provide all elements of the VoIP. The Project Team will
work with the City and its specified vendor to identify the equipment required for total
provisioning of VolP, will develop the high-level design and will develop estimation of
the associated capital and operational costs for City provisioning of VolP on the WiFi
network. This includes marketing and personnel costs.
d. CPE and Network Requirements for Automated Meter Reading over the WiFi Network
In this task, R. W. Beck's lead AMR consultant will contact selected manufacturers
regarding the status, availability and estimated costs of the CPE required to accomplish
AMR via the WiFi Network. The Project Team will also determine the additional
network costs that may be incurred to cover of all business and housing units as active
participants on the WiFi network due to AMR data collection. The result will be a likely
cost range for collection and transmission of AMR data via the proposed network. This
does not include the cost of CPE installation, servers or processing of this information.
Please note that it is assumed that the Azusa Light and Water billing system can accommodate
the billing of these flat -rated services. This study does not include the costs of billing system
changes, although this can be added upon request.
TASK 3: FINANCIAL PRO FORMA
In this step, we will combine the cost and demand estimates to identify the ten-year financial
implications of offering high-speed Internet and VoIP (third party and City provisioning
scenarios) via WiFi technology. The demand will be based on the previous survey findings,
along with additional secondary research on typical long-distance service needs that are the
primary drivers of VoIP subscription. The Financial Pro Forma will include the reporting
parameters (Cash Flow Breakeven, etc.) that were found in the previous report.
TASK 4: FINAL REPORT
The results of the above steps, the analysis and the conclusions will be issued in a Final Report
(15 copies). An electronic Draft Report will first be issued to the City's Project Coordinator(s)
for comment before the Final Report is issued. The Draft Report can be issued four weeks after
the Site Visit. An on-site presentation of the final results is offered as an additional service.
T:\Telecom Proposals\Azusa\Az WiFi Pmposal\fid Revised WiFi Pmpoml 061803.doc
093
Mr. Cary Kalscheuer
June 18, 2003
Page 5
TASK 5: OPTIONAL MONROVIA WIRED BROADBAND ASSESSMENT
Another option to create the Next Generation Broadband Home in the Monrovia Nursery
Housing development is to build a `greenfield" FTTH or HFC broadband network over which
the City can offer services. This optional task will assess a broadband build -out for the 1,250
proposed housing units of the Monrovia Nursery Housing Development in the same way that
high-end "wired" housing developments are done across the country. This analysis will assume
that the City is the sole provider of cable television and high-speed Internet via cable modem for
these homes. VoIP will also be included as an offering. This task will include all costs typically
incurred for a development of this type, including network investment, television programming
and operations costs. It is assumed that billing will be accommodated on the current utility bill.
Demand will be estimated based on the characteristics of mid to high income households. The
final report will be a financial analysis of the City's opportunity for offering broadband services
to this new housing development as a primary (rather than competitive) provider. NWS
Communications, a firm specializing in campus and planned community deployments of cable
television and high-speed Internet will be assisting in this analysis.
PRICE
The price for the scope of work as outlined above is as follows:
Core WiFi Project (Tasks 1-4 above): $24,000
Optional Monrovia Wired Broadband Assessment (Task 5): $8,100
With your written acceptance below, either or both of these projects can be incorporated into our
existing agreement as an additional scope items for the listed fixed fee. Additional analyses may
be added as a separate task addition based on time and expenses pricing with a not -to -exceed fee
to be set by the City. Each additional analysis must be authorized by the City in advance of the
work being performed. All task additions will be performed under the terms and conditions of
our Professional Services Agreement for the Telecommunications Feasibility Study dated July
24, 2002.
We look forward to continuing our work with Azusa Light and Water and the City of Azusa.
Please call me on (303) 299-5345 if you have any questions.
Sincerely,
R. W. BECK, INC.
Wendy T. Warner
Project Manager
WTW/hm
TATelewm Proposals\A. \Az WiFi Propos [Vnd Revised WiFi Proposal 061803,do
Mr. Cary Kalscheuer
June 18, 2003
Page 6
ACCEPTED:
Check Desired Additional Tasks:
WiFi Core Analysis (Tasks 1-4) -- $24,000
Optional Monrovia Wired Broadband Assessment -- $8,100
Additional Analyses (to be individually authorized by the City of Azusa)
Ceiling: $
AZUSA LIGHT AND WATER
Signature and Title
Signature and Title
Date
Date
T1Telecom ProposalskAnisa\An WiFi Pmposa]Vnd Revised WiFi Proposal 061803.doc
095
June 5. 2003
via E-mail
Mr. Cary Kalscheuer
Assistant to the Director of Utilities
Azusa Light and Water
729 N. Azusa Avenue
Azusa, CA 91702-9500
Subject: Wireless Operation and Example
Dear Cary:
The purpose of this letter is to answer your question regarding controlling subscription to
Wireless Fidelity (WiFi) services and to give some examples of the fast-growing deployment of
WiFi Internet.
WiFi is an IEEE standard Direct Spread Spectrum wireless technology that is now being
deployed by major service providers around the globe. The most widely publized deployment is
by Comets Networks, a consortia of IBM, Intel and AT&T, that is putting WiFi networks in
airports, downtown centers and major hotels around the country. Sprint, Verizon, AT&T
Wireless and T-Moblie are also building these networks. Even McDonald's is beginning to
implement WiFi, offering one hour of access for each extra value meal purchased!
As was discussed in the Appendix of our report, this technology was standardized in October
1999 within IEEE under the specification 802.11 . In the last three years the technology has been
adopted by many enterprises as a LAN extension technology (often at college campuses) and
more recently as an outdoor access offering via wireless bridges and rollers.
A typical Community WiFi broadband network might be engineered using the RADIUS triple A
server technology which provides for customer authentication, authorization and accounting
(this the reason for the "triple A" designation). As in the case of all existing wireless services,
the Azusa customer would have a name, an account number and a password. With the use of
RADIUS, the Azusa network will be secure and will only be accessible to paid subscribers.
The wireless broadband infrastructure now being deployed ubiquitously on college and
university campuses across the country use RADIUS. Additionally, Cometa (the consortium
mentioned above) will be using RADIUS in its deployment of 20,000 wireless broadband "hot
spots" at airports and other key locations around the country. Verizon also has plans to use
RADIUS in its east coast deployments. This is a proven technology for limiting access to
subscribers.
Another approach, taken by Benton County Public Utility District in Washington, is to use WiFi
technology for an open -access network. Attached is a reprint of a news article describing this
deployment by a public power utility that could not handle the long breakeven period for fiber.
00-00000-60108-2009/0893301 TATelecam ProposalsWnrsaVl a WiFi ProposaMcros and Deployment final-E.doc
1801 Cafrfornia Street, Suite 2800 Denver, CO 80202-2606 Phone (303) 299-5200 Fax (303) 297-2811
M
Mr. Cary Kalscheuer
June 5, 2003
Page 2
Our proposal includes a tutorial on WiFi technology and deployment which will enable
interested parties to ask questions and understand how the technology would work in Azusa.
We look forward to exploring this opportunity with you.
Please call if you have further questions.
Sincerely,
R W. BECK, INC.
Wendy T. Warner
Senior Consultant
Telecommunications
WTW/hm
00-00000-60108-2009/0893301 T:\Telecom Proposals\Az \Ama WiFi Pmpm1\A=ss and Deployment finaFE.doc
097
Attachment
Cary Kalscheuer
June 5, 2003
Article from 80211 Planet
Located at http://www.80211-planet.com/news/article.php/2204171
Utility to Offer Community -Wide Wi-Fi
By Eric Griffith
Kennewick, Wash., sits near the southeastern border of the state; on a map it looks almost,
equidistant to Seattle, or Salem, Ore., or even Boise, Idaho. While somewhat isolated, the
Tri -Cities area (Kennewick with Pasco and Richland) area has grown a lot since just the
1940s, with about 150,000 people in Benton County as of 2001.
The area has become a haven for some of the intellectual elite working for the
government, as highly secure research is always underway at the Hanford Nuclear
Reservation -- home of the last site selected to assist in World War lTs Manhattan
Project, a move that displaced some 1,500 people, forced to give up their homes for the
war effort. It's said Benton County has more Doctor of Philosophy (Ph.D.) recipients per
capita than anywhere in the United States.
And yet, even in this day and age, the area lacked affordable broadband, with most homes
and businesses getting by with dial-up Internet connections.
That was until Project Durango came along.
Tomorrow, Sen. Maria Cantwell, D -Wash., will symbolically "cut the cord" (scissoring a
phone line attached to a modem) to officially launch one of the first community -wide
wireless broadband networks powered by a public utility and its partners.
Power to the People
Since 1998, Benton Public Utility District (PUD), the power supplier for the county,
along with other PUDs throughout the northwest United States have had an agreement to
lease dark fiber put in place by the Bonneville Power Administration. These lines are
used for power generation operation, but that only takes about 3 percent of their capacity.
So, as of 2001, Benton PUD had connected to the fiber to create a network backbone that
could serve high-speed Internet access to every building in the Tri -Cities area.
The problem was actually getting it to those buildings. The cost of running fiber to every
location, and doing the fiber -to -Ethernet conversion so customers' computers could
access it, could have run in the millions of dollars. They needed a final -mile solution that
would work for anyone and not cost as much as a Hollywood studio movie.
The final decision: Go with Wi-Fi. Access points with amplified antennas could be
installed on the light poles throughout the area -- not a problem since Benton PUD owns
them -- and on buildings wherever the dark spots might be. Those high-powered units
Ma
Attachment
Cary Kalscheuer
June 5, 2003
would broadcast an 802.1 lb signal to any and all homes and businesses that wanted the
service.
The access points, from YDI Wireless, are encased in heated, weatherproof boxes that
connect directly to the fiber going to the Internet. They were installed at the power poles
by Lockheed -Martin Information Technology, the system integrator for the project.
Project Durango is not a free -Net project meant to give no -cost Internet access to anyone
who wants it. The Benton PUD needs to make money. What they didn't want to do was
become an ISP with the hassles of dealing with billing, technical support, etc.
In a move similar to what Cometa Networks plans for its business model, the Benton
PUD has built the infrastructure but is leaving the sales of service to multiple ISPs.
"Under Washington state law they have to provide open access -- it has to be retailed by
multiple ISPs. Any ISP that wants access to the network can distribute the services," says
Tim Zenk, vice president marketing for Chameleon Technology.
Seattle -based Chameleon is a contract partner with the Benton PUD on Project Durango.
The company's Service Provider Broadband Suite is the software at the heart of the
wireless service, providing central management for the service providers using the
network. It sits on the network itself, hosted by the Benton PUD, and lets the individual
ISPs set what they need.
The software supports a public key infrastructure (PKI) encryption, so Zenk says there's
no need for other security measures on the access point or on subscriber's computers. In
fact, for things to work properly for a Project Durango connection, no security can be
turned on -- no WEP, no WPA, etc. The access points have to be open to all. The security
is embedded in the network.
Connections are relatively simple. Users with single computers can just use a typical off-
the-shelf 802.1 lb card (and perhaps an extra antenna if needed for those out of range).
Those with home or small office networks might have to setup an access point in bridge
mode to service all their clients.
When new users open their Web browser, they will be redirected to a screen listing the
ISPs that provide service through Project Durango, where they can instantly sign up.
Computers are then forced to download a client piece of software that will handle all user
provisioning and encryption/decryption of data going in and out.
So far, only two ISPs have signed on to provide services: Amerion and One World
Telecommunications. Others may join at any time. Even the few local providers of
broadband connections are welcome to become wireless providers through the project,
since the law requires that the utilities must offer the service wholesale.
099
Attachment
Cary Kalscheuer
June 5, 2003
More than just homes and businesses will be able to use the network. The Benton County
Sheriffs office, for example, can use it right from police cruisers, as the network will
offer subnet-roaming for users moving from access point to access point.
The Price of Wireless
Zenk says he expects the cost of service to be comparable to broadband cable or DSL --
around $40 to $50 per month for about 1Mbps of download bandwidth.
Of course, the ISPs can compete on price and how big a pipe they offer, customized per
customer. With a point-to-point connection, the connection can go up to I lMbps with the
802.1 lb access points. Zenk says with multiplexing, they could offer up to 100Mbps off
the fiber.
He estimates that the entire project will cost under $500,000 to get off the ground, and
says that compared with the thousands it would have cost to go to each home and
building with fiber, that's a major cost savings.
"They need to be able to recover these costs," says Zenk. "They need to at,least break
even, and you can't do that with fiber."
For Phase I of the launch of Project Durango, about eight square miles of Kennewick's
Clearwater business area will be covered. The trial has been underway for about three
months already.
"We've found 802.11 to be highly reliable," says Zenk. "The fiber people might like us to
go away, but this is what happens -- entrepreneurs find ways to do things that aren't the
way the standard was officially presented."
100
ORSIGHT
CIIEiIONi
—AZuS!} NLPR /6I�n/AY
.bPrlotJ TWOS (2)
260 Ers.oENKE AVENUE, KA1. 116
sum
fplrl moQ1, %mt «itS
FIr115l-1 CT.f3.17.�
`n/Ga? GUT' tX=-56?1A
_ � � I v"1•!GF 'T ii-• � .'E'S'� _/����_7lsli �.� f!y
IM1�T�t7— t
KL
3T�:�{�` /pit �A� E'a }a.aN
.nJlt�li-i : j2�,.p