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AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AND
AZUSA CITY COUNCIL
AZUSA LIGHT & WATER
729 N. AZUSA AVENUE
AZUSA, CA 91702
AZUSA UTILITY BOARD
DIANE CHAGNON
CHAIRPERSON
DICK STANFORD
VICE CHAIRPERSON
CRISTINA C. MADRID
BOARD MEMBER
MONDAY, OCTOBER 27, 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
1. PUBLIC PARTICIPATION
(Person/Group shall be allowed to speak without interruption up to five (5) minutes maximum
time, subject to compliance with applicable meeting rules. Questions to the speaker or
responses to the speaker's questions or comments, shall be handled after the speaker has
completed his/her comments. Public Participation will be limited to sirty (60) minutes time.)
001
CUSTOMER APPEAL
1#
Customer Billing Dispute - Mr. Chris Babakitis. Recommendation: Affirm that charges billed for
period of January 29 to March 27, 2003 in amount of $140.64 are correct.
H
II -A. Svc Charge.
Dispute
he Consent Calendar adopting the printed recommended action will be enacted with one vote. if Staff or
:ouncilmembers wish to address any item on the Consent Calendar individually, it will be considered under
PECLU CALL ITEMS.
CONSENT CALENDAR
k Minutes. Recommendation: Approve minutes of regular meeting of September 22, 2003, as written.
9
III -A. UB Min
9-22-03
Conservation Education Program. Recommendation: Waive bidding and award purchase of turnkey
interactive conservation education program to LivingWise for Azusa sixth grade students.
III -B. LivingWise
A / Amendment to Blanket Purchase Order issued to Bristol Babcock, Inc. Recommendation:
Authorize amendment in amount of $20,000.00 for Filtration Plant's software and hardware upgrade
as well as adding two new telemetry sites to the system control and data acquisition (SCADA) system
for Wells #11 and #12.
F]
III -C.
BristoiBabcockPO
Contract for River Projects Consultant. Recommendation: Approve contract with Suzanne Avila in
amount not to exceed $63,750 to provide San Gabriel River Consulting Services for FY 2003-04 and
grant an exemption from the competitive selection process.
H
III -D. River Contract
Destruction of Wells. Recommendation: Approve and authorize bidding for destruction of three
1- abandoned wells located at 209 Grandview Dr., Azusa; 16706 E. Cypress, Covina; and 16106 E. San
Bernardino Rd., Covina.
2 002
III -E. Destruction of
3 Wells
Substation Maintenance Agreement. Recommendation: Award maintenance agreement to ABB
Power T1i.D Services in amount not to exceed Fifteen Thousand Eight Hundred Seventy Dollars
($15,870) for routine testing, inspection and maintenance of existing 15 circuit breakers at Azusa
Substation.
N
III -F. Substation
Maint
G. Mountain Cove Reimbursement Agreement. Recommendation: Approve Reimbursement
Agreement and authorize funds disbursement for the oversizing of water facilities constructed during
the Mountain Cove Development.
E
III -G. Mtn Cove
Reimbursement
IV. SCHEDULED ITEMS
A. Neighbor Assistance Program. Recommendation: Approve resolution to create Neighbor Assistance
Program where Azusa Light & Water customers could contribute any amount to assist a low-income
Azusa Light & Water customer to pay water bill once a year.
IV -A. Neighbor
Assistance Program
B. Third Party Utility Bill Payment Services. Recommendation: Approve resolution amending credit
card charge of Azusa Light & Water Rules and Regulations and awarding a two-year contract to
Speedpay for utility bill payment by credit card, debit card, automatic clearinghouse (ACH), and
electronic check.
E
N -B. SpeedPay
V. STAFF REPORTS/COMMUNICATIONS
A. Annual Adjustment of Replacement Water Cost Adjustment Factor (RWCAF)
12
V-A. Replacement
Water Cost
003
Monthly Power Resources Update
V -B. Power Update
Oct 2003
:. IClrlcwall Substation Project Monthly Update
E
V -C. IOrkwall
Substation Project
11. DIRECTORS' COMMENTS
a
Mayor Cristina Cruz -Madrid: "An Interview with Larry Anderson, Director, Utah Division of Water
Resources," GovernmentlNest, July/August 2003.
r�2
VII -A.
IarryAnderson
111. CLOSED SESSION
Conference With Legal Counsel - Anticipated Litigation
Government Code Section 54956.9(b)
Significant Exposure to Litigation - 1 case
'111. ADJOURNMENT
,. Adjournment.
%n compliance with the Americans with Disabilities Act, ifyou need special assistance to participate in
i city meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior
o the meeting or time when special services are needed will assist staff in assuring that reasonable
irrangements can be made to provide access to the meeting. "
4 004
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES!
DATE: OCTOBER 27, 2003 VV
SUBJECT: CUSTOMER BILLING DISPUTE - MR. CHRIS BABAKITIS
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council support the staff
recommendation and decision of the Director of Utilities that the charges billed on this
account are correct.
BACKGROUND
On July 21, 2003, Mr. Chris Babakitis, 25251 Vespucci Rd., Laguna Hills, California, wrote a
letter disputing a water bill for the period January 29 - March 27, 2003 for his property
located at 636 W. Arrow Hwy., Covina, California, Account Number 233-0810-04-3. See
details on attached letter to customer dated August 4, 2003 and our chronological notes
regarding this account.
FISCAL IMPACT
Unpaid utility bill is $140.64.
Attachments:
Chris
Ba b a kitis-R r-080403.1
�4
Chris
Ba ba kitis-Chronologic
005
August 4, 2003
Mr. Chris Babakitis
25251 Vespucci Rd.
Laguna Hills, CA 92653
Subject: Disputed water bill for January 29 - March 27,.2003
636 W. Arrow Hwy., Covina, CA
Account Number 233-0810-04-3
Dear Mr. Babakitis:
I reviewed your dispute letter dated July 21, 2003 in which you requested $178.57 charge
dismissed. On July 28, 2003 you spoke to Senior Customer Service Representative
Ms. Tapia and stated you wanted that request reduced to $12.07, which represented the
meter charge and usage amount for the period May 12 to June 4, 2003.
Our records show water was turned off at 636 W. Arrow Hwy. on February 4, 2003 but
was being used at this property on February 20 so our field service representative pulled
the meter. On April 2 our meter reader found the water service was illegally connected
so our Water Crew was dispatched to remove the jumper. When our field service
representative revisited the property on April 22 he again found the service was jumpered
and once again the Water Crew was dispatched to remove the jumper. There was a
$50.00 charge for each of the Water Crew visits and this was later explained to you by
Ms. Tapia.
On April 28 you signed up for service. You are correct - you were charged an $80.00 for
Prepayment and $50.00 for Reconnect Charge to have the water meter reinstalled and you
paid the $130.00 total. You did not, however, pay the water bill for the period May 12 to
June 4, 2003. The breakdown of this bill is as follows:
$100.00 two $50.00 Water Crew call -outs charges to remove the jumpers
on April 2 and April 22
27.00 service charge - charged to all new customers for the
administrative costs of opening an account
12.07 meter`charge and usage amount for May 12 to June 4, 2003
.80 Replacement Water Cost Adjustment Factor
.77 Covina Utility Users Tax
$140.64 : , TOTAL BILL
NM
Page 2: Mr. Chris Babakitis
After reviewing your account and the record of events over the past six months, I have
determined that the charges are appropriate and correct. You have deposited a check of
$150.00 along with your letter of dispute. If you agree with my decision you need to
send us another check in the amount of $140.64 so we can return your check ($150.00)
deposited for dispute resolution. Or you can authorize the $150.00 check to be applied to
your current balance of $140.64, with a credit of $9.36 to be applied to your next bill.
If you do not agree with my decision, you can appeal to Azusa City Council/Utility Board
by submitting a written request detailing your dispute, addressed to Azusa City Clerk at
213 E. Foothill Blvd., Azusa, CA 91702, within 30 days after receipt of this letter.
However, you need to let us know which action you plan to take before August 15, 2003,
so automatic shut-off for delinquency will not be processed by our billing system.
Thank you for your patience as we looked thoroughly into this matter and gave it every
consideration possible. We value you as a customer and strive to give you excellent
customer service.
Sincerely,
Joseph F. Hsu
Director of Utilities
Cc: Karen Vanca, Assistant Director of Customer Care & Solutions
007
Chris Babakitis July 28, 2003
636 W. Arrow Hwy
Covina, CA
Account No. 2330810043
2-4-03 Turned off for consumption shown,read 334/32
and no one signed up for service; property
vacant
2-20-03 Found water back on --man washing truck
pulled meter read 336/37
4-2-03 Meter reader W. Mandigo found water service
jumpered water crew to handle (have picture)
4-22-03 FSR G. Valdez found water service jumpered
Water crew removed c -clamp and jumper
(have picture)
G. Valdez filed a report with Covina P.D.
4-28-03 Owner of property, Chris Babakitis called
to start water service, CSR J. Padilla quoted him
we needed to have $80-Pre/payment, $50 -Reconnect
Fee and we would bill $100 on first bill for
additional charges due to repeated service crew
calls(4/2 & 4/22) to turn off meter & removal of
illegal jumpered items. Customer agreed.
7-1-03 Azusa Light & Water sent reminder notice for
$140.64:
$100.00 - misc. water charge
27.00 - service charge to open account
13.64 - water bill for 5-12-03 to 6-4-03
140.64
7-21-03 Chris Babakitis called office stating he did not
get advised of $100 charge to his account and
that he would not have agreed to the charge.
Informed customer of dispute process.
7-23-03 Received letter of dispute and check for $150.00
7-28-03 1 spoke with Chris Babakitis to clarify his letter
stating he wanted $178.57 dismissed. He said to
MM
I
cancel that statement and requested "he only
wanted to pay $12.07 -the meter charge and usage
amount." He also wanted documentation about the
problems we experienced; that he was not aware of
these.
$12.07 Mr. Babakitis is willing to pay excludes
$27.00 service charge to open account, $.80 RWCAF,
and $.77 Covina User Tax.
009
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, OCTOBER 27, 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: BOARD MEMBERS: HARDISON, CHAGNON, MADRID
ABSENT: BOARD MEMBERS: STANFORD, ROCHA
ALSO PRESENT: Also Present
City Attorney Ferre, City Manager Cole, Director of Utilities Hsu, Assistant City Manager Person,
Deputy City Manager Gutierrez, Administrative Technician Yang, Assistant to the Utilities Director
Kalscheuer, Assistant Director of Customer Care and Solutions Vanca, Assistant Director of Water
Operations Anderson, Assistant Director of Resource Management Tang, Senior Electric Engineer
Langit, Customer Service Leader Tapia, Business Development/Public Benefits Coordinator Reid,
City Clerk Mendoza, Deputy City Clerk Toscano.
Public Participation Pub Part
Mr. Art Morales addressed Board Members noting that although the City of Azusa's image has A. Morales
been improving, the Colonial and Western Inn hotels have been deteriorating, and he asked that Comments
the City Manager's office look into the matter.
Customer Appeal — the Customer Billing Dispute of Mr. Chris Babakitis was continued to the next Customer
meeting in November. Mr. Babakitis works for Edison and is currently working on an emergency Dispute
situation with regard to the recent fires. Continued
November
Meeting.
The CONSENT CALENDAR consisting of Items III- A through Ill -G, were approved by motion of Consent Cal
Board Member Hardison, seconded by Board Member Madrid and unanimously* carried, with the Approved
exception of items 111-A and III -D, which were considered under the Special Call portion of the III A & D
Agenda.
Spec Call
A. SPECIAL CALL.
Spec Call
B. Approval was given to waive formal bidding procedures for turnkey interactive conversation LivingWise
education program for Azusa sixth grade students; and award the purchase to LivingWise. Educ Prgm
C. Authorization was given for an amendment in the amount of $20,000.00 to the Blanket Amend P.O.
Purchase Order issued to Bristol Babcock, Inc. for the fiscal year ending June 30, 2004. Bristol Bab.
D. SPECIAL CALL ITEM.
E. Authorization was given to approve bidding for destruction of three abandoned wells located
at 209 Grandview Drive, 16706 E. Cypress and 16106 E. San Bernardino Road and to
authorize the solicitation of bids.
The Maintenance Agreement for routine testing, inspection and maintenance of existing 15
circuit breakers at Azusa Substation was awarded to ABB Power T&D Services in the amount
not to exceed Fifteen Thousand Eight Hundred Seventy Dollars ($15,870).
G. The Reimbursement Agreement with Standard Pacific Corporation/Azusa Associates and the
disbursement of funds associated with the Reimbursement for the oversizing of water
facilities constructed during the Mountain Cove Development was approved.
Special Call Items
Board Member Hardison requested that the minutes reflect Councilmembers as Board Members
as they are meeting as a different entity, the Utility Board. Moved by Chairperson Chagnon,
seconded by Board Member Hardison and unanimously* carried to approve the minutes of the
September 22, 2003 Utility Board Meeting.
Chairperson Chagnon addressed the contract for River Project Consultant, expressing concern
regarding a possible conflict between Scope of Services and Exhibit C, Compensation, regarding
paying for business expenses. Assistant City Manager Person responded stating that they pay the
salary and that there is reimbursement for minimal expenses. Chairperson Chagnon requested
that section 3.3.1 be amended to read "without written approval of the Utility Board". She
expressed the need for accountability and that the phrase "on an as needed basis" is not tied in to
project performances, and is too vague. Mr. Person responded listing actual tasks that Ms. Avila
is working on and Board Member Madrid added that the work done by Ms. Avila is evolving.
Chairperson Chagnon also noted that there are some projects that relate to utility and that others
relate to water and expressed concerns regarding mixing funds.
Spec Call
Authorize
bids dstr.
Wells
Maint Agmt
Circuit Break.
Az Substn
Rmbrsmt
Agmt w/
Standard Pac
Spec Call
Items
Hardison
Comments
Min appvd
Chagnon
Comments
Moved by Chairperson Chagnon, seconded by Board Member Hardison to approve a contract, as Contract w/
amended, with Suzanne Avila in an amount not to exceed $63,750 to provide San Gabriel River S. Avila
Consulting Services FY 2003-04 and to grant subject contract an exemption from the competitive Approved
selection process (professional services).
Staff responded to questions posed by Board Member Madrid regarding the destruction of Wells; Destruction
as to the size of the wells and if they are inhibited. Of wells
question
10/27/03 PAGE TWO
Scheduled Items
Sched Items
Assistant Director of Customer Care and Solutions Vanca addressed the Board Members Neighbor
presenting a proposed Neighbor Assistant Program which would pay a maximum of $50 per Assistant
qualifying residential water account per fiscal year. She detailed the specifics of the program and Program
advised that funds for the program would come from customer contributions by writing a
separate check or rounding up to any even dollar amount on their utility bill. Further that it would
be run on a first-come first -service basis as funds are available. She stated that advertising would
be done throughout the year on the utility bill message.
Chairperson Chagnon offered a Resolution entitled:
A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA,
CREATING A NEIGHBOR ASSISTANCE PROGRAM.
Moved by Chairperson Chagnon, seconded by Board Member Hardison to waive further reading
and adopt. Resolution passed and adopted by the following vote of the Council:
AYES:
BOARD MEMBERS:
NOES:
BOARD MEMBERS:
ABSENT:
BOARD MEMBERS:
HARDISON, CHAGNON, MADRID
NONE
STANFORD, ROCHA
Assistant Director of Customer Care and Solutions Vanca addressed Board Members presenting a
new SPEEDPAY (two year pilot program) where customers can make payment 24 hours per day, 7
days a week via a toll free telephone number, through a link from Azusa Light & Water's website
or directly from SPPEDPAY's website. During business hours, from Light & Water office customers
can either use the pay phone in the lobby to call SPEEDPAY's toll free number or the Customer
Utility Representatives, including cashiers, can assist customers with the payments via
SPEEDPAY's website. There will be no charge to Azusa Light and Water. She detailed other
information regarding the program, answered questions posed and stated that if approved, it will
begin January, 2004.
Board Member Hardison offered a Resolution entitled:
Res. 03-C84
Neighbor
Assistance
Program
Asst Dir Cust
Care & Sol
Comments
A RESOLUTION OF THE AZUSA UTILITY BOARD/CIN COUNCIL OF THE CITY OF AZUSA, Res. 03-C85
AWARDING A CONTRACT FOR THIRD PARTY UTILITY BILL PAYMENT SERVICES TO SPEEDPAY. SPEEDPAY
Moved by Board Member Hardison, seconded by Board Member Madrid to waive further reading
and adopt. Resolution passed and adopted by the following vote of the Council:
AYES:
BOARD MEMBERS:
NOES:
BOARD MEMBERS:
ABSENT:
BOARD MEMBERS:
HARDISON, CHAGNON, MADRID
NONE
STANFORD, ROCHA
Staff Reports/communications Staff Rpts
Director of Utilities Hsu provided an information item regarding the Annual Adjustment of Dir of Utilities
Replacement Water Cost Adjustment Factor (RWCAF), stating that The RWCAF, by tariff adopted RWCAF
in 1992 requires an annual review, and if necessary, is adjusted. He stated that the RWCAF will be Update
adjusted for fiscal year 2003-04 to an amount of $0.09 per ccf (hundred cubic feet), effective for
all bills rendered after October 31, 2003.
10/27/03 PAGE THREE
Moved by Board Member Madrid, seconded by Board Member Hardison and unanimously* Monthly
carr4ed to receive and file the Monthly Power Resources Update. Power Res
It was consensus of the Board Members to receive and file the Kirkwall Substation Project Monthly
Kirkwall Sub
Status Report.
Station
Director's Comments
Dir Com
Board Member Madrid addressed item regarding the article "an Interview with Larry Anderson,
Article
Director, Utah Division of Water Resources, "Government West, July/August 2003, regarding
Re: Larry
reduction of water consumption. City Manager Cole responded stating in relationship to the
Anderson
Results Based Budgeting — Vital Factors, this would be a good issue with regard to setting goals.
Board Member Hardison expressed appreciation to Assistant Director of Customer Care and
Appreciation
Solutions Vanca for the contract for the third party vendor customer payment program.
To Vanca
Director of Utilities Hsu provided an update on the meeting with Mountain Cove residents and the
Dir of Util
issue of the 2" water meters. He stated that they will be bringing an item to the Utility Board
Mtn Cove
November meeting with a proposal/compromise, they will charging the residents with the 2"
2" meters
meters the same cost as the residents with the 1 " meters, plus, a reduced fire service charge.
It was consensus of Councilmembers to recess to Closed Session to discuss the following:
Conference With Legal Counsel —Anticipated Litigation
Closed Sess
Government Code Section 54956.9(b)
Anticipated
Significant Exposure to Litigation — 1 Case
Litigation
The City Council recessed to Closed Session at 7:12 p.m. and reconvened at 7:55 p.m. There
One Case
was no reportable action taken in Closed Session.
No Rpts
It was consensus of Councilmembers to adjourn.
Adjourn
TIME OF ADJOURNMENT: 7:56 P.M.
SECRETARY
NEXT RESOLUTION NO. 03-C86.
10
10/27/03 PAGE FOUR
MENNEWOM LOAL
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, SEPTEMBER 22, 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.
ROLL CALL
PRESENT: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ALSO PRESENT:
HARDISON, STANFORD, CHAGNON
ROCHA, MADRID
City Attorney Carvalho, City Manager Cole, Director of Utilities Hsu, Assistant City Manager
Person, Deputy City Manager Gutierrez, Administrative Technician Yang, Assistant to the Director
of Utilities Kalscheuer, Assistant Director of Water Operations Anderson, Assistant Director of
Resource Management Tang, Senior Electric Engineer Langit, Assistant Director of Electric Division
Ramirez, Customer Service Leader Tapia, Customer Service Scholes, City Clerk Mendoza.
Ceremonial
Call to Order
Roll Call
Also Present
Ceremonial
Chairperson Chagnon announced that Mayor Madrid and Mayor Pro -Tem Rocha will not be Chagnon
present at the meeting as they are at the Los Angeles County Fair representing the City of Azusa Comments
as today, September 22, 2003, was proclaimed "Azusa Day' at the Fair. She also announced that
she will be delivering a proclamation to Larry Wetherbee honoring him for his service to the City
as he was unable to attend the meeting tonight.
Chairperson Chagnon presented a proclamation to Director of Utilities Hsu declaring the week of Proc Public
October 5h through the I I `", 2003, as Public Power Week. Power
Week
010
Chairperson Chagnon presented a proclamation to Garthy Lynn Dent honoring him for his service Proc to Lynn
to the Azusa Light & Was Department as a Line Mechanic. Dent
Chairperson Chagnon provided a presentation on her trip, along with Cary Kalscheuer and Bob Chagnon
Tang, to Solano County for the High Winds Project Dedication Ceremony on September 18, 2003. High Winds
Overheads of windmills were shown along with other aspects of the High Winds Energy Center. Project Ded
Councilmember Stanford, representative of the City on the Mosquito Vector Control Board, Stanford
announced that there have been signs of the West Nile Virus in birds found in Arcadia, San Gabriel Comments
and Rosemead; he advised to get rid of any standing water around properties in order not to West Nile
attract mosquitoes. Virus
+
Public Participation
Pub Part
i
None.
None
Chairperson Chagnon requested that item 11-B, regarding Mt. Cove Water Service be brought
Item 11-B
forward at this time for handling.
Brt fwrd
Director of Utilities Hsu addressed the issue stating that he received a telephone message and
Dir of Util
also saw an article in Mountain Times, a local Mountain Cove Association newspaper basically
Comments
accusing Azusa Light and Water of unfairly taxing Mountain Cove residents. He stated that many
of those residents have 2" water meters with a monthly charge of about $57.00, while other
residents have 1 " water meters are about $17 or $18 per month. The water rates are based on
water demand and the 2" meters are for properties that have sprinkler systems. He stated that
some time ago the Fire Department required all the buildings in the foothills vulnerable to fire to
have a sprinkler system in residential house. He stated that in order for the Fire Department to
determine exactly how much water is required to suppress a fire, they had to look at the total
square footage, mainly the garage square footage. The Fire Department and the developer made
the decision that the dividing line is 600 square feet; any garage over that requires a 2" water
meter. He suggested that the residents talk to the developer, Mountain Cove and Michael
Battalgia to identify the information first and then contact the Fire Department to see who
determines the 600 feet determination. He stated that Azusa Light and Water does have meters
of 1 1/2 ", which is cheaper and if they say residents can get by with this Azusa Light and Water will
change the meter at no charge. He then described how rates are set for water.
Several residents of the Mountain Cove community addressed the issue questioning what -the cost Residents
of a 2" meter is paying for and how it correlates to the water usage. Director of Utilities Hsu Mountain
responded stating that part is for depreciation cost, the fixed sized is based on the demand of Cove &
water for the building, and labor costs, and it was reiterated that the criteria was established by Response
the Fire Department and the Developer and that everyone in the City is paying into the pool based
upon the size of their meter.
After additional discussion, Chairwoman Chagnon requested that a meeting be scheduled on Chagnon
October 23, 2003, at the Mountain Cove with an authorized representative from the Fire Comments
Department, Mr. Mike Battalgia of Mountain Cove, and Director of Utilities Joe Hsu. She also
requested that staff create a list of all residents in the City with 2" meters and their billed amount.
Item regarding customer billing dispute — Mr. Chris Babakitis was continued to the next Utility Babakitis
Board meeting due to Mr. Babakitis' absence. Continued
09/22/03 PAGE TWO
Consent Cal
The CONSENT CALENDAR consisting of Items IV -A through IV -C, were approved by motion of Approved
Councilmember Hardison, seconded by Chairwoman Chagnon and unanimously* carried.
A. The minutes of the regular meeting of July 23, 2003, were approved as written. Min appvd
011
Approval was given to advertise for bids for the repairs to Water Well No. 2. Chairperson Rpr Well 2
Chagnon indicated that the budget amount and account number should be included in
reports under fiscal impact section.
C. Approval was given to advertise for bids for Water Project W-186, Main Replacement in Main Replace
Pasadena Avenue, Old Mill Road, Alameda Avenue, and Stein Lane. Various Sts
Scheduled Items Sched Items
Utilities Director Hsu addressed Council regarding the re -negotiation of the Contract Water Rate Dir of Util
for Miller Brewery stating that a study was conducted by Consultants with the goal to have a new Comments
rate for Miller Brewery. After the Consultant study was done, they were given a choice of a fixed Contract
rate or the Golf Course rate. Discussion was held regarding the rates to be charged Miller under Water Rate
their contract. Moved by Councilmember Stanford, seconded by Hardison and unanimously* Miller
carried to approve the Contract Water Rate for Miller Brewery to continue applying the same rate Brewery
as was applied to the Golf Course prior to the last water rate adjustment.
Assistant Director of Resource Management Tang addressed item regarding the San Juan Unit #3
Energy Exchange Letter Agreement detailing the need to firm up the San Juan power by providing
Energy
the unit contingent power to a third party in exchange the counter party provides Firm power back
Exchange
to the City of which the benefits are simplified scheduling purposes, and by having firm power
Letter Agmt
they can optimize around it. He stated that the firming arrangement with the third party will begin
Public Service
May 1, 2004; further RFP process was held with detailed guidelines. He recommended approval
Company
for the Public Service Company of Colorado. Moved by Councilmember Stanford, seconded by
Chairwoman Chagnon and unanimously carried to approve Letter Agreement for Energy Exchange
of San Juan unit #3 power between City and Public Service Company of Colorado and the Mayor
was authorized to execute the same.
Utilities Director Hsu addressed item regarding the request by San Gabriel Valley Municipal Water
District for the City's support of a jurisdictional boundary reconciliation, stating that when SGVMWD
Mountain Cove was established it straddled on two water districts and there is a difference in tax Jurisdiction
rates. He advised that there is an opportunity to reconcile the boundaries of the two jurisdictions. Boundary
Moved by Councilmember Stanford, seconded by Councilmember Hardison and unanimously* Reconciliation
carried to authorize staff to prepare a letter to express the decision by Azusa Utility Board to San
Gabriel Valley Municipal Water District expressing their hope to reconcile the boundaries of the
two jurisdictions.
Moved by Councilmember Hardison, seconded by Councilmember Stanford and unanimously* Repair Well
carried to declare an emergency and approve the repair to Well No. 1 by General Pump Company No. 1
in the amount of $64,500. The following resolution was adopted and entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA WAIVING FORMAL SEALED Res. 03-C76
BIDDING PROCEDURES AND AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER FOR AN P.O. for
AMOUNT NOT TO EXCEED $64,500.00 FOR EMERGENCY WATER WELL REPAIR. Emergency
Repair Water
09/22/03 PAGE THREE Well
Moved by Councilmember Hardison, seconded by Councilmember Stanford to waive further
reading and adopt. Resolution passed and adopted by the following vote of the Council:
AYES: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: ROCHA, MADRID
012
Deputy City Manager Gutierrez presented the Fiscal Year 2004-2008 Capital Improvement Dep City Mgr
Program Budget for Electric and Water Projects detailing the new format which included sections Presentation
noting description, justification, scheduling, relationship to General Plan, special consideration and CIP
operating budget impact.
Moved by Councilmember Hardison, seconded by Councilmember Stanford and unanimously* CIP approved
carried to adopt the electric and water projects for the fiscal year 2004-2008 Capital Electric
ttri Dept
Improvement Program (CIP) Budget. This will increase appropriations for projects in the Electric P
Division by $850,000 and in the Water Division by $4,275,000 as identified in Attachment A.
Staff Reports/Communications
Staff Rpts
Assistant City Manager Person presented an update on the San Gabriel River Projects which Update
consisted of the Azusa Canyon River Park, Bike Trail, Forest Station Interpretive Center and the SGR Prjts
Spreading Basins. He then answered questions posed by Councilmembers.
Chairwoman Chagnon suggested that staff contact Supervisor Molina's Office regarding the under Chagnon
grounding pipeline issue with Cal -American Water Company. Comments
Tour of San Juan Power Plant - Assistant Director of Resource Management Tang submitted an Tour of
Overview of the Tour in which Staff participated in a two-day tour sponsored by the Public Service San Juan
Company of New Mexico (PNM) and SCPPA. Other Visitors included City of Banning, Imperial Power Plant
Irrigation District and SCPPA Staff. There was a tour of San Juan #3 Operations and the adjacent
underground coal mine operations and there was an in-depth meeting with plan senior
management.
The Monthly Power Resources Update and the Kirkwall Substation Project Monthly Update were Updates
noted, but, no questions or discussion was held. Pwr Res &
Kirkwall
Director of Utilities Hsu submitted a detailed FY 2002-03 4th Quarter Work Plan Update; there FY 02-03
were no questions and no discussion was held. Work Plan
Director of Utilities Hsu addressed the Substation Landscape and Front Wall Rendering stating Substation
that there have been a few changes; they have gone from stucco walls and a trellis to block walls Landscape
and mesh. He presented an engineer's rendering detailing its contents and answering questions Discussion
posed by Councilmembers.
Director's Comments
Dir Com
Item regarding "an Interview with Larry Anderson, Director, Utah Division of Water Resources, Item con't
Government West, July/August 2003, was continued to the next Utility Board Meeting due to the Re: Larry
absence of Mayo Madrid. Anderson
09/22/03 PAGE FOUR
It was consensus of Councilmembers to recess to Closed Session to discuss the following: Closed Sess
Conference with Legal Counsel — Existing Litigation Conference
Government Code Section 54956.9(x) W/Legal
Res -Care, Inc., v. City of Azusa Counsel
Case No.: Los Angeles Superior Court No. KC040062 Res -Care
013
Conference with Legal Counsel — Existing Litigation Conference
Government Code Section 54956.9(a) W/Legal
City of Azusa v. Simich Counsel
Case No.: Los Angeles Superior Court No. KC041085
Conference With Legal Counsel — Anticipated Litigation Anticipated
Government Code Section 54956.9(b) Litigation
Significant Exposure to Litigation — 1 Case One Case
The City Council recessed to Closed Session at 8:30 p.m.and reconvened at 9:12 p.m. There No Rpts
was no reportable action taken in Closed Session.
It was consensus of Councilmembers to adjourn.
TIME OF ADJOURNMENT: 9:13 P.M.
SECRETARY
NEXT RESOLUTION NO. 03-C77.
Adjourn
014
AZi r.n♦ � xvrUSA
rr
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: October 27, 2003
SUBJECT: WAIVE FORMAL BIDDING PROCEDURES AND AWARD PURCHASE OF
CONSERVATION EDUCATION PROGRAM TO LIVINGWISE
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council:
1. Waive formal bidding procedures for turnkey interactive conservation education
program for Azusa sixth grade students; and
2. Award the purchase of the turnkey interactive conservation education program
Azusa sixth grade students to LivingWise.
BACKGROUND
During the 2000-01 school year, LivingWise conducted a turnkey interactive curriculum
program for 834 sixth grade students throughout the City of Azusa. The program was so
successful that it was expanded to include 963 students in Azusa's public and private schools
during the 2001-02 school year. Last year participation dropped to 816 sixth graders, due in
part to lower attendance and also lower participation by the private schools. I
The overall goals of the Program were to generate immediate residential savings while
building resource awareness and environmental responsibility in the students and their
families. Students learned about natural resources in their daily lives, reinforced by real-lif
activities. Each student received a Resource Action Kit containing a LimeLite Nitel-ite that
uses 3/100th of a watt, an air filter alarm, a low Flow showerhead, and a faucet aerator.
Students installed these items at home with parental involvement. '
015
Additionally, pre and post surveys were conducted to measure the learning impact and the
knowledge gained through the program. Students were also provided with.a household
report card and home checkup.
FISCAL IMPACT
The cost of the program will be about $10,000 lower this year than in previous years. The
lower cost is based on per unit cost of $41 versus a prior cost of $45 per unit. The reduced
per unit cost along with the reduced participation results in a total estimated expense of
$46,218.75, to be paid out of the Public Benefit Fund account number 24-40-739-0.82-
6625/RLvWis-6625.
Prepared by:
Paul Reid, Public Benefits Program Manager
016
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
AND AZUSA CITY COUNCIL
FROM:
JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE:
OCTOBER 27, 2003
SUBJECT: APPROVAL OF $20,000 AMENDMENT TO BLANKET PURCHASE ORDER
BRISTOL BABCOCK, INC.
RECOMMENDATION
It is recommended that the Utility Board/City Council authorize an amendment in the amount
of $20,000.00 to the Blanket Purchase Order issued to Bristol Babcock, Inc. for the fiscal year
ending June 30, 2004.
BACKGROUND
In accordance with a Professional Services Agreement by and between Azusa Light &
and Bristol Babcock, Inc. dated October 20, 2001, Bristol Babcock has furnished the
materials, tools, and equipment for the Water Division's radio telemetry and system 4
and data acquisition (SCADA) design. Additional equipment, labor and engineering si
are now required to upgrade software and hardware at the Canyon Filtration Plant as
adding two new telemetry sites at Wells #1 1 and #12 to the SCADA system.
FISCAL IMPACT
Fiscal impact will be up to $20,000.00. Funds are available in the Water Division's CIP
budget, account number 32-80-000-721-7140, Project No. 72101 G.
Prepared by:
Phyllis Bradley, Administrative Services Supervisor
,Fi
017
A
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
AND AZUSA CITY COUNCIL
FROM: JOSEPH T. HSU, DIRECTOR OF UTILITIES lW
DATE: OCTOBER 27, 2003
SUBJECT: CONTRACT FOR RIVER PROJECTS CONSULTANT
RECOMMENDATION
It is recommended that the Azusa Utility Board approve a contract with Suzanne Avila in
amount not to exceed $63,750 to provide San Gabriel River Consulting Services for FY 21
04 and to grant subject contract an exemption from the competitive selection process
(professional services).
BACKGROUND
The City has employed the services of Ms. Avila for two years and the proposed current
contract is for year three. Ms. Avila provides project management and public relations
support for the City's San Gabriel River restoration/enhancement projects.
As a result of budget cuts taken by all city departments, Ms. Avila was asked to reduce this
year's contract by 15% from prior years. This cut should be able to be absorbed as morek
projects are shifting from the grant writing stage to the construction stage (bike path andUS
Forest Service Station site) which will be managed by Parks Development staff. Ms. Avila will
focus this year on generating further grants and the master planning of the Grand Wilderness
Park as well as ongoing public relations
Ms. Avila was selected through a competitive selection process prior to the first year
The approval of this contract "piggybacks" on that prior process.
FISCAL IMPACT
Funds for this project have been budgeted in the FY 2003-04 Water Division budget
721-798-6493).
Prepared by: Robert Person, Assistant City Manager V A �^ / u)
Attachment: � �l(/ G".J
Suzanne Avila �;1
Contract.pdf 1 0.16
CITY OF AZUSA
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 1 st day of July, 2003 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 Suzanne Avila, SOLE PROPRIETORSHIP with its principal place of business at
1201 N. Azusa Avenue, Azusa, California ("Consultant"). 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 San Gabriel River Projects
Coordination services to 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 for the San Gabriel River
Revitalization project ("Project") as set forth in this Agreement.
TERIM.
3.1 Scope of Services and Term.
3.1.1 General Sco ee of Services. Consultant promises and agrees to famish to
the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional San Gabriel River Projects
Coordination 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
0.19
3.1.2 Term. The term of this Agreement shall be from July 1, 2003 to June 30,
2004, 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 Citythat
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. hi 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 ora
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: Suzanne Avila.
RVPUBWGS%544364 2 -
3.2.5 City's Representative. The City hereby designates Robert Person, 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 Suzanne
Avila, 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, including a City Business License, 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,
RVPUBWGSl541360 3
021
i
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 ansing
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 satisfae tory
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. 1
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 Liability. The general liability policy shall be
endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and 1
RVPUBVGS544364 4
022
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 SSe aration 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.
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.
RVPUB%NGW44364
023
3.2.10.7 Acceptability of Insurers. Insurance is to be placed
insurers with a current A.M. Best's rating no less than A:VIII, 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 I
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 I
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. i
3.2.11 Safely. 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 i
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices, I
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
shall not exceed 63750.00 without written approval of€ity'srepr�ser}ta e.Extra Work maybe
authorized, as described below, and if authorized, will be compensated at and manner
set forth in this Agreement. -�
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by t�
Consultant. The statement shall describe the amount of Services and supplies provided sine,
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within 45 days of receiving such statement, review
the statement and pay all approved charges thereon. I N
RWUBWGS,544364 6
024
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.
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 fifteen (15) 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
RVPUBWGSl544364
025
r
S
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:
Suzanne Avila
1201 N. Azusa Avenue
Azusa, CA 91702
City of Azusa
213 East Foothill Blvd.
Azusa, CA 91702-1295
Attn: Robert Person, Administration
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.
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
RVPU8WGSt5"3rA 8
026
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 Attomey'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.
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.
RVPUBWGSl544364
027
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 withourt the
prior written consent of the City. Any attempt to do so shall be null and void, and any ass&ees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.13 Construction; References; Ca tp ions. 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 f
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 f
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. 1
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 d
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the
provisions shall continue in full force and effect.
RVPUBWGS\544364
10
W11
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
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 Countemaarts. 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.
RVPU13WGS\5"366 11
02S
m
Attest:
CITY OF AZUSA
Rick Cole
City Manager
City Clerk
Approved as to Form:
1 e. l :Q y4-`�
Best Best & Krieger LLP
City Attorney
RVPUBWGSl544364
SUZANNE AVILA
A&�nw"
By:
SVzanne Avila
12
River Projects Coordinator
1 t
EXHIBIT "A"
SCOPE OF SERVICES
Including but not limited to: City of Azusa representation with Lower Los. Angeles and
San Gabriel Rivers and Mountains Conservancy, Attendance at Los Angeles County San
Gabriel River Master Plan meetings, Grant writing, submittal, and maintenance for
project funding, Duties related to river land acquisition, Correspondence and
communication with City designated Open Space Design Consultants, Correspondence and
communication with various river stakeholders (i.e. USDA Forest Service, San Gabriel
River Water Committee, San Gabriel Mountains Regional Conservancy, Sierra Club San
Gabriel River Task Force, Friends of the San Gabriel River), Correspondence and
communication with federal, state, and local elected officials.
RVPUBWGS\544364
A-1
031
EXHIBIT "B"
SCHEDULE OF SERVICES
July 1, 2003 — Tasks associated with San Gabriel River Projects
June 30, 2004 on an as needed basis
RVPUBWGS'5443N7
r�
032
RVPUBWG9544364
EXHIBIT "C"
COMPENSATION
Professional Fees: $50.00 per hour
Mileage: $0.36 per mile
Expenses: 100% of all business expenses related to job performance
C-1
033
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2003
SUBJECT: APPROVAL OF THE DESTRUCTION OF THREE WELLS AND SOLICITATION OF
BIDS TO ACCOMPLISH THE DESTRUCTION
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the destruction of three wells
and authorize the solicitation of bids to accomplish the destruction.
BACKGROUND
The Water Division currently owns three abandoned wells, located at: 209 Grandview Dr.,
Azusa,; 16706 E., Cypress, Covina; and 16106 E. San Bernardino Rd., Covina. The wells are
,not equipped with pumps or power, and were taken out of service for various reasons
approximately twenty years ago. The first well listed is a City of Azusa well, the site of which
has recently been dedicated to the Azusa Parks and Recreation Department, and the second
and third pumps listed formerly belonged to Azusa Valley Water Co. The abandoned wells
represent significant potential liability to the City and must be destroyed to alleviate the
potential problems that the well casings pose to public safety and water quality. The wells will
be destroyed according to applicable standards of Los Angeles County Health Department,
California Department of Health Services, Main San Gabriel Basin Watermaster, and California
State Department of Water Resources.
FISCAL IMPACT
The fiscal impact of destroying the wells will be paid from Operation and Maintenance funds
budgeted and approved for the destruction of the subject wells; approximately $130,000. An
exact fiscal impact will be known once bids are solicited and received.
Prepared by:
Chet Anderson, Assistant Director- Water Operations
034
j1L
F
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2003
SUBJECT: AWARD MAINTENANCE AGREEMENT - TESTING, INSPECTION &
MAINTENANCE OF EXISTING CIRCUIT BREAKERS AT AZUSA SUBSTATION.
RECOMMENDATION
It is recommended that the Utility Board/City Council award the maintenance agreement
contract to ABB Power T&D Services in the amount not to exceed Fifteen Thousand Eight
Hundred Seventy Dollars ($15,870) for routine testing, inspection and maintenance of
existing 15 circuit breakers at Azusa Substation.
BACKGROUND
In late 1997, Azusa Light & Water replaced old oil circuit breakers with new vacuum circuit
breakers when the transformer capacity was increased at Azusa Substation. After five years of
continued normal operation, these circuit breakers needed to be tested and inspected as part
of routine preventive maintenance recommended by manufacturer. Staff solicited informal
proposals from vendors to perform the maintenance tasks. The proposals are as follows:
Company: Amount:
1) ABB Power T&D Services $15,870
2) Independent Testing Company $17,989
3) Curtis Duff Electric $19,410
FISCAL IMPACT
This project is budgeted this fiscal year under Light Division Maintenance Budget for Station
Equipment and funds are available under Account # 3340735920-6563.
Prepared by:
F. Langit, Jr., PE , Senior Electrical Engineer
035
AZUSA
I IGMT 6 M'ATI R
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESr^Qr
DATE: OCTOBER 27, 2003 VV
SUBJECT: APPROVAL OF THE DISBURSEMENT OF FUNDS ASSOCIATED WITH THE'
REIMBURSEMENT AGREEMENT WITH STANDARD PACIFIC
CORPORATION/AZUSA ASSOCIATES FOR THE OVERSIZING OF WATER
FACILITIES CONSTRUCTED DURING THE MOUNTAIN COVE DEVELOPMENT
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the Reimbursement Agreement
and authorize the disbursement of funds associated with the Reimbursement Agreement for
the oversizing of water facilities constructed during the Mountain Cove Development.
BACKGROUND
As a part of their Mountain Cove development, Azusa Associates (Standard Pacific Corp.) was
required to provide infrastructure necessary to serve the project. Azusa Associates was
required to fund the costs of infrastructure necessary to serve the demands created by the
development, and Azusa Light & Water agreed to fund the additional costs due to the
oversizing of the improvements. The total amount of the reimbursement is $484,000, and will
be paid from approved Capital Improvement Project funds in the aggregation of the following
amounts: $180,867 for oversizing of transmission line to 12" diameter; $228,376 for the
increased cost of the reservoir and land for oversizing to 1 million gallons; and $74,757 for
increasing the booster pump output to 600 gallons per minute.
FISCAL IMPACT
The fiscal impact of the Reimbursement Agreement is $484,000 and is to be paid in the
above aggregative amounts from previously budgeted and approved Capital Improvement
Project funds for construction of a water storage reservoir, water transmission line, and
booster station for the Mountain Cove Development.
Prepared by: Chet Anderson, Assistant Director- Water Operations
Attachments:
036
MOUNTAIN COVE
STANDARD
BILL OF SALE. DOC
PACIFIC. DOC
036
t
BILL OF SALE GENERAL ASSIGNMENT. AND TRANSFER AGREEMENT
THIS BILL OF SALE, GENERAL ASSIGNMENT AND TRANSFER
AGREEMENT ("Agreement"), is made as of September —17,2003, by and among AZUSA
ASSOCIATES, LLC, a California limited liability company ("Assignor") and THE CITY OF
AZUSA, a California municipal corporation, acting through AZUSA LIGHT & WATER
("Assignee").
A. Assignor is the owner and developer of the Mountain Cove residential
community located in the City of Azusa, County of Los Angeles, State of California (the
"Mountain Cove Community").
B. In conjunction with construction of the Mountain Cove Community and
related offsite improvements (collectively, the "Project'), Assignor has constructed the
following pumping and water storage improvements within, and in proximity to, the
Mountain Cove Community (collectively, the "Improvements"): (i) a water tank located in
the Mountain Cove Community (the "Water Tank"); and (ii) pump stations located on offsite
property owned by Assignee. The Water Tank is located on the real property more
particularly described in Exhibit "A" attached hereto and incorporated herein by reference
(the "Land"). The Improvements and the Land are collectively referred to as the "Property."
C. The parties desire to enter into this Agreement in order to provide for the
conveyance and transfer of the Improvements and the Land from Assignor to Assignee as
well as the transfer of certain warranties related to the Improvements. The provisions of this
Assignment shall not reduce the fees required to obtain water service for the Project, if any.
NOW, THEREFORE, the parties hereto hereby agree as follows:
1. Upon execution of this Agreement, Assignee shall pay to Assignor the amount
of €teeFour Hundred and Eiehty Four Thousand Dollars ($500,009j($4g4.0001(the
"Payment") as total consideration for the transfer and conveyance of the Property from
Assignor to Assignee and the performance by Assignor of the other provisions of this
Assignment.
2. Upon execution of this Agreement and Assignor's receipt of the Payment,
Assignor shall convey to Assignee title to the Land by way of a Grant Deed in the form
attached hereto as Exhibit `B.". Assignor shall fully execute and deliver said Grant Deed to
Assignee concurrently with the execution of this Agreement and Assignor's receipt of the
Payment. The Land shall be transferred from Assignor to Assignee free and clear of all
mechanic's or lenders liens or encumbrances, but subject to all other exceptions or matters
affecting title.
3. Effective as of Assignor's receipt of the Payment, Assignor does hereby sell,
transfer, assign, deliver, and otherwise transfer to Assignee, free and clear of all mechanic's
liens and lender encumbrances the Improvements
Final Azusa Mountain Cove Bill of Sale.doc 037
4. Assignor hereby represents and warrants that, to its knowledge, there are no
mechanic's liens affecting the Property and that, to Assignor's knowledge, Exhibit "C,"
attached hereto and incorporated herein by reference, includes unconditional lien waivers
from each and every contractor, subcontractor, vendor, and other persons supplying goods,
materials and services in connection with the construction and installation of the
Improvements. For purposes of this Agreement, Assignor's "knowledge" shall mean and
refer to the actual knowledge of Michael Battaglia.
5. Effective upon the recordation of the Deed and the receipt by Assignor of a
Payment, Assignor hereby grants, assigns, transfers, conveys and delivers to Assignee,
without recourse, representation, or warranty, and on an "as -is, where is" basis, Assignor's
right, title, interest, benefits and privileges, if any, in and to the following: (a) on a
nonexclusive basis and subject to the limitations set forth herein, any assignable warranties in
favor of Assignor from the contractors and subcontractors (excluding, however, Standard
Pacific Corp., which has provided no such warranties) constructing the Improvements (the
"Warranties"), and (b) on a nonexclusive basis and subject to the limitations set forth herein,
all plans and specifications which relate to the Improvements, but excluding any such
documents or materials to the extent they relate to land or improvements which are not a part
of the Property. The Warranties are identified in Exhibit "D" attached hereto and
incorporated herein by reference.
6. Assignee hereby accepts the grant, assignment, transfer, conveyance and
delivery of the Warranties set forth in Paragraph 5 hereof. Assignee further acknowledges
and agrees the non-exclusive assignment of the Warranties is effective only to the extent that
(a) any such assignment does not impair Assignor's continuing rights under the Warranties
and (b) any such assignment does not result in any loss, liability, claim or judgment against
Assignor, Standard Pacific Corp., a Delaware corporation, Standard Pacific of Orange
County, Inc., a Nevada corporation, or any of their respective members or partners, and each
of their respective divisions, subsidiaries, members, partners and affiliated companies and
each of their managers, employees, officers, directors, shareholders, agents, representatives,
successors and assigns (individually, an "Indemnitee," and, collectively, the "Indemnitees").
7. Assignee acknowledges that it has accepted the Improvements and Assignee
has approved the design and specifications of the Property in all respects. Assignee shall
indemnify, defend and hold Assignor and the other Indemnitees, harmless from any expense,
liability, or claim for death, injury, loss, damage or expense to persons or property which
may arise or is claimed to have arisen either (a) as a result of any act or omission of
Assignee, its officers, agents, or employees; or (b) with respect to the design, construction,
maintenance, and operation of the Improvements, save and except if such death, injury, loss,
damage, or expense is determined by a court of competent jurisdiction to have been solely
caused by any gross negligence or willful misconduct of such Indemnitee (and the acts or
failures to act of any consultant, contractor, or other agent or representative of any
Indemnitee shall not be attributed to such Indemnitee). Assignee waives on its behalf and
releases the Indemnitees from all claims and demands of any kind or character which
Assignee has or asserts, or may hereafter have or assert, against the Indemnitees, or any of
Final Azusa Mountain Cove Bill of Sale.doc 2 1 038
them, for any losses, damages, injuries to or death of any person, or other liabilities incurred
by Assignee at any time, whether direct or indirect, known or unknown, based upon, arising
out of, or relating to the Property, and the activities and transactions in connection with the
condition, use and/or construction of the Improvements and any patent or latent defects
relating thereto.
ASSIGNEE HEREBY ACKNOWLEDGES THAT IT HAS READ AND IS
FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542
("SECTION 1542"), WHICH IS SET FORTH BELOW:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."
BEING AWARE OF SAID CODE SECTION, ASSIGNEE HEREBY
EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE THEREUNDER, AS WELL AS
UNDER ANY OTHER STATUTE OR COMMON LAW PRINCIPLE OF SIMILAR
EFFECT, WITH RESPECT TO THE CLAIMS AND DEMANDS RELEASED ABOVE.
8. This Assignment shall be binding upon and inure to the benefit of the
successors, assigns, personal representatives, heirs and legatees of the respective parties
hereto.
9. In the event of the bringing of any action, arbitration, suit, or proceeding by a
party hereto against another party hereunder by reason of any breach of any of the covenants,
conditions, agreements or provisions on the part of the other party arising out of this
Assignment, the prevailing party shall be entitled to have and recover of and from the other
party all costs and expenses of the action or suit, including reasonable attorneys' fees.
10. This Assignment shall be governed by, interpreted under, and enforced and
construed in accordance with the laws of the State of California.
11. This Assignment may be executed in multiple counterparts, each of which
shall be deemed an original, but all of which together shall constitute but one and the same
instrument.
[Signatures begin on following oage.l
Final Azusa Mountain Cove Bill of Sale.do 3 - .039
IN WITNESS WHEREOF, the parties hereto have executed this instrument as of
the date first hereinabove written.
"Assignor" Azusa Asseeia4es AZUSA ASSOCIATESULC
a California limited liability company
By: Standard Pacific of Orange County, Inc.,
a Nevada corporation, its Manager
I�
Name:
"Assignee" THE CITY OF AZUSA,
DEPARTMENT OF LIG a California
municipal corporation
Name:
Final Azusa Mountain Cove Bill of Sale.doc 4 040
Exhibit "A"
Description of the Land
Lot 333 of Tract No. 52824-2, in the City of Azusa, County of Los Angeles,
State of California, as shown on a map filed in Book 1272 at Pages 72 through
85, inclusive, of Maps, in the office of the County Recorder of said County.
Final Azusa Mountain Cove Bill of Sale.doc G 041
Exhibit "B"
Grant Deed and Easement Deeds
[see attached]
Final Azusa Mountain Cove Bill of Sale.doc A 042
Exhibit "C"
Unconditional Lien Waivers
Final Azusa Mountain Cove Bill of Sale.doc '] 043
Exhibit `T"
Warranties
Final Azusa Mountain Cove Bill of Sale.doc 8 044
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of Azusa
213 E. Foothill Blvd.
Azusa, CA 91702
Space above this line for Recorder's Use
GRANT DEED
No Recording Fee, Pursuant to Gov't Code §6103
THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $-0- This conveyance is an acquisition of title by
an exempt governmental entity (Rev. & Tax Code § 11922)
❑ City of Azusa, a California Municipal Corporation
❑ computed on full value of interest or property conveyed, or
❑ computed on full value of liens or encumbrances remaining at time of sale, and
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, AZUSA
ASSOCIATES, LLC, a California limited liability company, hereby GRANTS to THE CITY OF
AZUSA, a California municipal corporation, its successors and assigns, the following described
real property in the County of Los Angeles, State of California (the "Proyeerty"):
Lot 333 of Tract 52824-2, as shown on a map filed in Book 1272 Pages 72 through 85,
inclusive, of Maps, in the Office of the County Recorder of Los Angeles County.
EXCEPTING AND RESERVING UNTO Grantor, its successors and assigns, together with the
right to grant and transfer all or a portion of the same from time to time to one or more parties
(including, without limitation, the Mountain Cove Community Association, a California
nonprofit mutual benefit corporation, and its agents, employees and contractors) non-exclusive
easements over the Property for purposes of placement, maintenance, repair, and replacement of
landscaping and irrigation equipment together with the right of ingress, egress and access over
the Property as reasonably necessary in connection with the exercise of the foregoing.
SUBJECT TO:
1. General and special real property taxes and assessments and supplemental
assessments, if any, for the current fiscal year.
2. All other covenants, conditions, restrictions, reservations, rights, rights-of-way,
dedications, offers of dedication and easements of record, apparent, or known to Grantee.
Final Azusa Grant Deed re Standard Pacific.dm 045
IN WITNESS WHEREOF, Grantor has executed this Grant Deed on the day and year
hereafter written.
2003 Azusa Associates, LLC,
a California limited liability company
By: Standard Pacific of Orange County, Inc.,
a Nevada corporation, its Manager
By:
Title:
Name:
Final Azusa Grant Deed re standard Pacific.doc 2 046
4C
State of California
County of Orange
On 2003, before me,
personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
State of California
County of Orange
On , 2003, before me,
personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
Final Azusa Grant Deed re Standard Ncific.dm 047
17
:a, A
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2003 P
SUBJECT: RESOLUTION TO CREATE A NEIGHBOR ASSISTANCE PROGRAM
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council adopt the creation of a Neighbor
Assistance Program where Azusa Light & Water customers could contribute any amount to
assist a low-income Azusa Light and Water customer, pay their water bill once a year.
BACKGROUND
Azusa Light & Water low-income electric customers currently have two programs available to
them. Low Income Home Energy Assistance Program, or LIHEAP, a federally -funded program
that helps low-income households pay their energy bills, is granted once a year. The amount
is based on the number of persons in the household, total household income, the cost of
energy within the county where the household resides, and funding available. The average
annual payment in California is $182.00.
Azusa Light & Water also has a Public Benefit Low -Income Assistance Program that pays one
month's electric bill per year. From January 1, 1998 to June 30, 2003 this program has paid
out $19,717.00 to 611 customers.
There are no programs, however, to provide assistance to water customers. Programs at
Burbank, Riverside, and Los Angeles were surveyed and a summary of their programs is in
Attachment A.
Azusa Light & Water's proposed Neighbor Assistance Program would pay a maximum of
$50.00 per qualifying residential water account per fiscal year. This amount was determined
because water bills average $33.17. We would use the same qualifying guidelines as for the
Public Benefits low-income assistance program. We could modify the application form so
residents could complete just one form for both programs. To qualify, customers would need
to have a good utility payment record with Azusa Light & Water, have been a residential
customer of ours for one year, and meet the LIHEAP Federal low-income guidelines.
Funds for the program would come from customer contributions either by writing a separate
check or rounding up to any even dollar amount on their utility bili.
To keep the program simple to administer, there would be no waiting list. Azusa Light &
Water would administer the program on a first-come first -serve basis as funds are available.
Program advertising would be done throughout the year on the utility bill message and once a
year, in the fall, a bill insert would be created to describe the program in more detail and
encourage contributions.
Due to the programming required to accept contributions, we anticipate being able to start
the program the 1" quarter of 2004.
FISCAL IMPACT
Approximately $3,000.00 for one bill insert per year advertising the program. This would be
charged to account 31-40-711-909-6539, Informational & Instructional Advertising.
Administration will handled internally by Azusa Light & Water Customer Service.
Prepared by:
Karen Vanca, Assistant Director of Customer Care and Solutions
Attachments:
040
NeghborAsst
Neighbor Asst
ProgramFxhibitA.do
PrograrrrReso.doc
040
ATTACHMENT A
Customer Assistance Programs
Burbank
Neighbors Offering Emergency Love, or NOEL, program, started in 1989. This program pays
$100.00 per resident on a one-time only basis to someone who recently went through an
emergency, such as a medical crisis, lost their job, etc. Funds are paid out anytime during the
year as long as funds are available. There is no income limitation, rather funds are granted to
a resident with good credit with Burbank with one year of service with the utility.
Customers can donate by writing a separate check, usually $5.00, and include it with their
payment. The number of customers helped has not been tracked.
Riverside
SHARE started in 1989 and pays $150.00 per residential account per calendar year as long as
funds are available. This is a low-income program based on Federal guidelines, the same as
LIHEAP. The only other requirement is that the customer have one year of service with
Riverside.
Customers can donate by checking a box on their utility bill and either deciding each month or
signing up to automatically roundup to the nearest amount the customer wishes to donate -
nearest ($1.00, $5.00, $10.00, etc.) or to donate a Flat amount every month. Riverside
collects an average of $3,500.00 each month. They promote donations to the program in
November and December on the back of their utility bills, with bill inserts, and on their utility
bill envelopes.
Their Public Benefit funds pays $90,000.00 for the County Department of Community Action
to administer the program. This contract may be discontinued in the near future. Their Public
Benefit funds add another $600,000.00 into the program annually for City residents only, as
county residents don't pay into the Public Benefit funds.
Approximately 15,000 customers have received help to date.
Los Angeles Department of Water and Power
Project Angel, Assist Neighbors by Giving Energy for Living, began in 1983 and pays a
maximum of $100.00 to senior citizens or low-income residential accounts per year based on
the Federal low-income guidelines. Other requirements are that they must be a LADWP
customer, residential single-family, and must have a balance owning on their account.
Donations are solicited on utility bills. Any dollar amount can be added to a utility bill. There
is no automatic monthly sign-up, rather the donation is good only for that month. No Public
Benefit funds are involved. Whenever the fund reaches $100,000.00 - usually every two
years - LADWP explains the program in a bill insert and the day of distribution and location.
Usually all the funds are exhausted on the morning of the distribution day. Approximately
1,000 customers are helped every two years.
United Way holds the funds and charges LADWP $3,000.00 per month for this service
0.5 0
RESOLUTION NO.
A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY
COUNCIL OF THE CITY OF AZUSA, CREATING A
NEIGHBOR ASSISTANCE PROGRAM.
WHEREAS, there are no state or federal programs which help low-income
residents pay their water bills; and
WHEREAS, the Utility Board/City Council desires to create a program to
provide some assistance to low-income utility customers; and
WHEREAS, the Utility Board/City Council has determined that one way to
fund a low-income assistance program is through the voluntary contributions of Azusa
Light & Water customers; and
WHEREAS, the Utility Board/City Council believes it is healthy for the
community to voluntarily support those in financial need through a Azusa Light & Water -
sponsored Neighbor Assistance Program; and
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, DOES FIND AND DECLARE THAT:
Section 1. Program Creation. A Neighbor Assistant Program is hereby
created which will allow Azusa Light & Water customers to
make contributions which will be used to reduce the cost of
water service for one month per year for qualifying low-
income customers.
Section 2. Effective Date. The resolution shall become effective
January 1, 2004.
PASSED, APPROVED AND ADOPTED this 27th day of October 2003.
Cristina C. Madrid
Mayor
051
z
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 27th day of October 2003, by the
following vote, to wit:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
Vera Mendoza
City Clerk
052
AZUSA
t IGMT 6 'MATIR
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITI�
DATE: OCTOBER 27, 2003
SUBJECT: RESOLUTION TO AWARD CONTRACT FOR THIRD PARTY UTILITY BILL PAYMENT
SERVICES TO SPEEDPAY
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution amending Azusa Light
& Water Rules and Regulations and awarding a two-year contract to Speedpay for utility bill
payment services for collection by credit card, debit card, automatic clearinghouse (ACH), and
electronic check.
BACKGROUND
In fiscal year 2002-03 the number of credit card payments received by Azusa Light & Water
had risen to 4,323 and debit card payments to 774. The related bank charges to the utility
amounted to almost $17,000.00. Additionally, the utility experienced an increase in the
number of cases of credit card fraud primarily due to the large number of credit card
payments received through the mail. These are time-consuming to investigate and resolve.
At the same time, customers have been asking for additional payment options. Residential
customers want the convenience of making payments over the telephone and we currently do
not have that capability. Some of our business customers want the ability to pay bill amounts
higher than our current $500.00 limit, which was instituted to minimize bank charges to our
utility by credit card so they can maximize their credit card benefits.
Not all other utilities, such as Southern California Edison, The Gas Company, and Verizon, take
credit card payments over the telephone due to the increase in fraud. Edison takes checks by
phone for $5.00 per transaction and The Gas Company and Verizon take ATM payments by
phone for a fee. The new payment methods, reflect the concern for possible fraud and the
high cost of bank charges. Other utility customers are becoming accustomed to paying to use
these payment methods for recurring payments.
Azusa Light & Water is interested in piloting a two-year project with SPEEDPAY, a third -party
053
payment service that can offer the services our customers are requesting.
With the convenience of SPEEDPAY, customers can make payments 24 hours per day, 7 days
per week via a toll free telephone number, through a link from Azusa Light & Water's website
or directly from SPEEDPAY's website. During business hours, from our Light & Water office
customers can either use the pay phone in our lobby to call SPEEDPAY's toll free number or
our Customer Service Utility Representatives, including cashiers, can assist customers with
these payments via SPEEDPAY's website. Customers will only be charged a $3.95 per
$500.00 increment service charge directly by SPEEDPAY.
This will be a great convenience for customers scheduled to be disconnected for non -pay, as
they could call SPEEDPAY and make a payment, get a confirmation number proving payment,
call our office with the confirmation number, and avoid disconnection - all without having to
leave their home or office to come to our office to make the payment. Doing this process
before being disconnected can save a customer $30.00, or $50.00 - $100.00 on weekends,
in reconnection charges. (Attached is an information sheet on how the process works.)
Costs for this service would shift from Azusa Light & Water to the customer. SPEEDPAY
charges are less than those charged by other local utilities for credit card payments.
SPEEDPAY also takes the responsibility to verify payment for fraud before sending payment to
us. We can receive payments electronically as frequently as we request and send a file every
hour with payment information from 6 a.m. to 5 p.m. to populate our Customer Information
System.
SPEEDPAY has extensive experience in this field with other companies and utilities, including
Duke Energy, Illinois Power, Piedmont Natural Gas, Georgia Natural Gas, Southwest Gas,
Alliant Energy, and SPEEDPAY recently signed a contract with the Sacramento Municipal Utility
District. The Los Angeles Department of Water & Power is also considering using SPEEDPAY.
At no cost to Azusa Light & Water, SPEEDPAY will also provide the initial advertising materials
to inform customers of this service.
The attached Letter of Agreement was reviewed and approved by City Attorney, Jeffry Ferre,
of Best Best & Krieger LLP.
FISCAL IMPACT
No cost to Azusa Light & Water but there will be a savings of the bank charges. Customers
would pay $3.95 per transaction of $500.00 or less directly to SPEEDPAY.
Prepared by:
Karen Vanca, Assistant Director of Customer Care and Solutions
Attachments:
054
Speedpay-Exhibit
Speedpay Info. pdf
Speedpay Letter of
Speedpay & Rules
A.DOC
Agreement.DOC
Amend Reso. DOC
054
EXHIBIT "A"
Proposed Changes to Rules and Regulations
ELECTRIC RULE CHANGES
Changes to take effect November 1, 1003, text to be deleted is highlighted in StFileeeui.
Changes to take effect November 1, 2003, text to be added is highlighted in underline.
Text that is not highlighted is current and is being provided for context and reference.
Amendment to Rule No. 8 Rendering and Payment of Bills
F. CREDIT CARD CHARGE: The credit card payment option is limited to $500.00 erkss.
Credit card and debit card payments for Azusa Light & Water will be accented through a third-
party vendor, by calling a toll-free number, accessing them from Azusa Light 8- Water's web site
or at the third-party vendor's web site twenty-four hours a day, or with assistance at the Azusa
Light & Water office. There will be a convenience charge of $3.95 per increments of $500.00
for this service.
WATER RULE CHANGES
Amendment to Rule No. 7 Rendering and Payment of Bills
E. CREDIT CARD CHARGE: The credit card payment option is limited to $500.00 er-les s.
Credit card and debit card payments for Azusa Light R Water will be accepted through a third -
Party vendor, by calling a toll-free number, accessing them from Azusa Light & Water's web site
or at the third -party vendor's web site twenty-four hours a day, or with assistance at the Azusa
Light & Water office. There will be a convenience charge of $3.95 per increments of $500.00
for this service.
Sim
E Commerce Gi
bill payment and
Speedpay Accep
- ACH/Electronic
- Credit Cards
- ATM Cards
- Checks
Goal
is a leading provider of
.tiple Payment Types:
Transfer
Speedpay's Bill Payment Service
• Desktop Payment Applicatio r_
• Voice Response Unit
r,
• Internet Payment Solution
Corporate Overview
• ECG is a wholly owned subsidiary of First Data
Corporation (NYSE: FDC)
• Fortune 300 company
• 6.4 Billion in Sales, 13% One Year Sales Growth
• 29,000 Employees
• Largest Credit/Debit Card Processor in U.S.
• Majority Owner of the NYCE ATM Network
One of the World's Largest Money Transfer
Networks
ECG Customers:
Sample Client Representation
• Aquila
• Duke Energy
• CP&L
• Illinois Power
• Cinergy
•-Sprint
• Comcast
• Ameren
• PECO
• Tampa Electric
(TECO)
• Florida Power
• Orlando Utilities
(OUC)
• Charter
:.Communications -
Desktop Payment Application:
For the live anent
Browser -based application that
CSRs use to enter and lookup
payments
- Accessed through corporate mtraaca
Yo"
the desktop
site on
- Sopbisticated look -up capaMhoes allows
'Y
CSRs to provide seamless customer
sece
rvi
- Aa payments are accessible, regardless
of type or mode of may
-
Capableofsrhedulingrecumng
-
paymeots
- --
,two
1
I
Voice Response Unit (VRUI):
The Automated Agent
Customers enter payment
themselves through the phone
Available 24/7/365
Services customers quickly and
efficiently
Reduces call volume to live
agents
No labor costs
Internet Payment Solution:
The Virtual Agent
• Customers enter payments -
themselves through your + -
website +'
-Available 24/7/365
- Reduces call volume to live _-
agents
- No labor costs
- Enhances your advertising efforts
Speedpay Verify
Utilizes a network of over 150 million bank
accounts from major banks, including Citibank,
Bank of America, Wells Fargo, Chase and others.
Checks the current status of the account
(overdrawn, frozen, closed, etc.) within seconds
Gives you information to evaluate whether or not
to proceed with the transaction
Sample IVR Call Flow
• Hello, you have rrnchedtheSpeedpdy aptiontopayN'tur
bill over the telephone. Ploare have your routing number
mul checking acmvn! mm�beq or your credl cordm order
m complete your(mymenG Please eller your otility
oeeo"v m mberfoll—ed by the poundsign.
• Customer then cbooses to pay via- Checks, ACF, at
Credit Card
• Cwomer eaters payment information
• Payment is mvimed, ooaf rased, and customer is provided
with a confirmation Dumber.
Options available to smve off discans c
crm,,..w
In-person Payment Solution:
• A service of Western Union, Convenience
Pay allows customers to pay their utility
bills at over 10,000 Western Union agent
locations
• Customers' checks are fed into a check
reader which converts the payments into
ACH transactions
Integration Capabilities:
Front End
Reduces data entry ,on
Allows payments to be entered faster
Determines Eligibility of customer
- MODIO, MODI 1, or custom validation
Speedpay can pre -populate the information with:
- MQ series
- Screen Scraping
- Customer Files
e. - TCP/IP Messaging
057
Integration Capabilities:
Postine Files
• Automatically updates your CIS
- Automatic notes posting
- Payment posting
- Immediate notification on disconnect payments
• Reduces data entry errors
•
Capturesallpayments, regardless of type or
mode of entry -
Application Monitoring
• All hosted applications are monitored on a
240 basis
• Real-time alerts are sent to on call technical
experts if a problem is detected
Speedpay Convenience Fee
Service
• With this service, Speedpay charges a fee to each
customer that makes a Speedpay payment
• The payment amount is deposited to the utility and
the fee amount is deposited to E Commerce Group
• The fees are used to cover the utility's cost of
using Speedpay and accepting credit card
payments.
- There is no cost to the utility fm using Speedpay under
the coms.eme Fee Semite?
• Web Security
- Encryption: SSL 128bit
- ArUhenticir6on: Digital Certificates
- Authorization: Required login with loan
number and the last 4 digits of the social
security number
- Firewalls
Superior Technical Support
• Technical support representatives are
available 24 X 7 X 365!
• 94.7% of all calls are resolved within one-
hour of the initial in=bound call
• 940/6 of all technical support calls have a
wait time of less than 5 minutes for a
technical support representative. -
Thank You!
Lauren Mesch
E Commerce Group
7 Dey Street
New York, NY 10007
(904) 997-1884 -
1- 058
1
z
AZUSA
LIGHT & WATER
For Quality of Life
Speedpay, Inc.
7 Dey Street
New York, New York 10007
City of Azusa
LETTER OF AGREEMENT
Re: Letter of Agreement for credit card payment service.
Dear Mr. Mesch:
This letter shall be our Agreement regarding credit card payment service
described below ("Services") to be provided by Speedpay, Inc. as an independent
contractor to the City of Azusa for the City's collection of utility bill payments via the
methods described in Exhibit `B". The City of Azusa hereby authorizes Speedpay to
provide the Services described herein and charge the consumer directly for the Service.
The Services to be provided are more particularly described in the Scope
of Services attached hereto as Exhibit `B" and incorporated herein by reference.
Contractor shall perform all Services under this Letter of 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, and
consistent with all applicable laws. Contractor represents that it and its employees have
all licenses, permits, qualifications and approvals of whatever nature that are legally
required to perform the Services, and shall be maintained throughout the term of this
Agreement. The City will cooperate with Speedpay in obtaining all required
authorizations and authentications from customers. This may require the City to send
statements to its customers including certain language required by Speedpay as follows
on the City's billing statements to customers, or as insert mailings. City and Speedpay
will work jointly to determine an acceptable content form to such mailing, though
Speedpay will have ultimate discretion over the content and reasonable form of such.
This may also require regular provision of customer data to Speedpay to ensure
authentication of the consumer.
The City shall provide no compensation for the above services. Contractor
will charge a customer $3.95 for each credit card payment processed.
Azusa Light & Water
729 N. Azusa Avenue P. O. Box 9500
Azusa, California 91702
626/812-5208 (phone)
626/334-3163 (fax) www.azusalw.com (web)
I information@azusalw.com (e-mail)
059
Letter of Agreement
Page: 2
If Contractor is an employer or otherwise hires one or more employees during the
term of this Project, Contractor shall also provide proof of workers compensation coverage for
such employees which meets all requirements of state law. Contractor shall also provide errors
and omissions professional liability insurance appropriate to its profession in an amount, with
conditions and for a term acceptable to the City.
The term of this Agreement shall be for a period of two (2) years from the
Effective Date (as indicated in the signature line below). Either Party may terminate this Letter
of Agreement at any time with or without cause on thirty (30) days written notice. The term may
be extended for one or more additional 2 -year terms upon the mutual written consent of both
parties prior to expiration of the then applicable term.
Contractor shall defend, indemnify and hold the City, its officials, officers,
employees, agents and volunteers free and harmless from any and all claims, demands, causes of
action, expenses, liabilities, losses, damages and injuries to property or persons, including
wrongful death, in any manner arising out of or incident to any alleged negligent acts, omissions
or willful misconduct of Contractor, its officials, officers, employees, agents, consultants and
contractors arising out of or in connection with the performance of the Services or this
Agreement, to the extent provided herein.
Under no circumstances will Speedpay and its affiliates or any of its directors,
officers, employees, agents or subcontractors be liable under any theory of tort, contract, strict
liability or other legal or equitable theory for lost profits, indirect, incidental, special,
consequential, exemplary, incidental, or punitive damages, each of which is hereby excluded by
agreement of the parties regardless of whether such damages were foreseeable or whether
Speedpay or any entity has been advised of the possibility of such damages. Notwithstanding
anything in this Agreement to the contrary, Speedpay's (and its affiliates or any of its directors,
officers, employees, agents or subcontractors) cumulative liability, including for claims,
expenses, damages or indemnity obligations arising out of this Agreement, shall not exceed
$600,000.00.
To the extent either party receives confidential or proprietary information
pursuant to this Agreement, the receiving party shall not disclose such information to any other
party except to provide the Services as described herein. Notwithstanding the foregoing, the
parties acknowledge and agree that the City is subject to the California Public Records Act that
requires disclosure of records under certain circumstances. In the event a request is made for
disclosure of confidential records in connection with this Agreement, the City shall notify
Contractor and shall pursue any applicable exemption from disclosure as may be provided by the
Act.
If you agree with the terms of this Letter of Agreement, please indicate by signing
and dating where indicated below. An original, executed copy of this Letter of Agreement is
enclosed for your records.
- 060
Letter of Agreement
Page: 3
CITY
Approved by:
Rick Cole
City Manager
CONTRACTOR
Reviewed and Accepted by Contractor:
Signature
Approved as to Form: Name
Best Best & Krieger LLP
City Attorney
Title
Effective Date
Letter of Agreement
Page: 4
Exhibit B
CONVENIENCE FTE SERVICE
1. Service Description. SPI will host the Service on its server (the "Speedpay Hosted Service").
A. Payment Acceptance: Client may receive Customer Payments in U.S. funds (no foreign exchange provided) via Speedpay in amounts
no greater than $500 per transaction through:
® Customers credit/debit cards ("Sneedpav Credit Card Payment")
® Debits to Customers' bank accounts through transfers using Customer's on-line debit cards without personal identification
number entry or verification ("On-line PIN -less debit"). The parties acknowledge that the use and availability of On -fine PIN -
less Debit is subject to the rules and regulations of applicable debit card networks (as in effect from time to time, the "Network
Rules"), including, but not limited to, daily transaction limits.
® Debits to Customers' bank accounts through either:
❑ production of pre -authorized drafts drawn on a Customers bank account and processed for collection through regular
banking channels (a "Speedpav Check"). SPI will print, produce and present checks.
® an automated clearing house ("ACH") electronic transfer (a "Sueedpav ACH" and, collectively with Speedpay Checks,
"Sneedpay Debi[ Payments"). SPI will create and submit file to ODFI for processing. Client will include mutually agreed
upon disclosures on ClienPs statements sent to Client's Customers.
B. Payment En[rv: Client may receive Customer Payments for processing into a U.S. account using Speedpay through:
® an Internet -based system operated by SPI and accessed directly by Customers via a website hosted and operated by Speedpay
(the "Speedpay Website"). The Sp"dpay Website pages relating to Client shall be developed and displayed in accordance with
the mutual agreement of the parties.
® an Imemet-based system operated by SPI and accessed by Client employees on behalf of Customers via a secure website
(the "Sundpav Extranet Service") for the purpose of inputting Customer Payment information when such Customer requests that
a Customer Payment be made, or
® through an interactive voice response ("IVR") system operated by Speedpay and accessible by Customers (the "Speedpay IVR
Service").
2. SPI Responsibilities.
A. Resources. SPI will provide, as applicable, the. materials and services ("Resources") necessary to process Customer Payments through
Speedpay, except for the minimum requirements set forth in paragraph 3A of this Schedule which are Client's responsibility. SPI shall use
commercially reasonable efforts to ensure that the Resources will accurately and correctly perform the functions required to make Customer
Payments using the Service.
B. IVR. For the Speedpay IVR Service, SPI will (i) make available a toll free (800 or similar) telephone number to access the Speedpay IVR
Service, (ii) provide IVR equipment and software, as necessary to allow Customers to input their account number, payment amount and
credit card or checking account information through the Speedpay IVR Service; and (iii) maintain the IVR unit.
C. Transit numbers. SPI shall maintain an updated national database of all ABAfrmnsit numbers for banks and bank verification throughout
the country as necessary to provide the Service.
D. Card Association Charm. SPI shall submit all Speedpay Credit Card Payments and Speedpay Debit Payments to third party credit card
networks and debit card networks.
E. Downtime. SPI reserves the period from 12:01 AM through 6:01 AM EST on Saturdays and Sundays for maintenance, repairs, inspections,
modifications and improvements to Speedpay, during which period the Service may not be available.
3. Client Responsibilities.
A. Hardware and Software Requirements. Client's browser must be Internet Explorer 5.5, Service Pack 2 and above OR Netscape 4.7.2 or
above. Microsoft VM (Virtual Machine) for Java must be installed if using Internet Explorer (VM usually downloads automatically when
IE is downloaded). SPI will not be responsible if Client's systems do not meet these requirements.
B. System Access/Posting Charees. All charges with respect to accessing orposting to Client's servicing system are Client's sole
responsibility.
C. Fraudulem(Unauthorized Transactions/Errors. Client shall not accept, deposit, enter into its computer terminal or database a Speedpay
Debit Payment or Speedpay Credit Card Payment that has not been properly authorized by the Customer concerned, and shall be
responsible for all losses and liabilities incurred by SPI or any Customer or other third party that arise out of unauthorized or fraudulent
Customer Payments. Client is responsible for erors made by Customers in entering credit card and/or bank account numbers and other
Customer Payment infnnnation and any resulting unauthorized debits or credits to Customer or other third party accounts.
D. Customer Relationship Credits. Client is responsible for all relationships with all Customers, including without limitation, delivery of all
communications and disclosures to Customers, unless specifically provided by SPI as indicated herein. Client shall respond to and resolve
Customer inquiries and complaints. Client shall maintain complete and accurate records of inquires and complaints from Customers arising
out of the Service, including the manner of disposition or resolution thereof, and shall promptly notify SPI in writing of such complaints and
provide SPI with any information reasonably requested by SPI related to the disposition or resolution of such complaints.
E. Password Protection. SPI may provide Client user name(s) and/or password(s) in order for Client's employees to access and use the
Speedpay Extranet Service. Client is solely responsible for maintaining the confidentiality of all such user names and passwords, and is
fully responsible for all activities that occur under Client's user names and passwords. Client may not disclose such user name(s) or
passwords to any third party. Client agrees to immediately notify SPI of any unauthorized use of Client's user names or passwords or any
other breach of security. SPI is not responsible for any loss to Client that arises from such use or action or from Chent's failure to comply
with these provisions.
F. Authorizations. Client is responsible for obtaining all required authorizations in form and manner from Customer, including the
authorization for the convenience fee payment made directly to SPI. Should Client obtain recurring authorizations from Customers, Client
shall be responsible for complying with Regulation E and at a minimum Client will: (1) obtain preauthorized electronic fund transfers from
a consumer's account authorized only by a writing signed or similarly authenticated by the Customer; (2) provide a copy of the
'062
Letter of Agreement
Page: 5
authorization to the Customer, (3) provide information to Customer about their right to stop payment by notifying Client orally or in
writing at least three business days before the scheduled date of the transfer, (4)provide information to Customer about their right to revoke
their authorization; (5) provide Customer with written notice, unless waived by Customer, of the amount and date of a transfer amount that
will fall outside the range or differ by more than an agreed-upon amount at least ten (10) days before each scheduled date of transfer; (6)
obtain authorization for transfers varying in amount by giving the Customer the option of receiving notice only when a transfer falls outside
a specified range of amounts or only when a transfer differs from the most recent transfer by more than an agreed-upon amount.
G. Miscellaneous. Client represents and warrants that all sums owed by Customers must be bona fide, just and lawfully due and owing. Client
has all necessary licenses and authorities to conduct its business and lawfully collect the sums from the Customers. Client will cease and
desist in all pre -authorized Speedpay Check production immediately should its Speedpay authorization he revoked or suspended during, or
as a result of, any investigation, audit, or unfavorable review by SPI, any governmental entity or regulatory authority.
4. A. Merchant Processor & ODFI Election. The parties agree that SPI will use its own credit card merchant processors and/or ODFIs to
charge/debit consumers accounts for the payments authorized by users of the SPI Service. For credit card transactions, SPI must identify,
itself as the merchant Such funds will be held temporarily in SPI, and where applicable (as determined from time to time by SPI in its sole
discretion) Western Union, accounts, and then swept into the Client's designated bank account.
B. Process. SPI shall provide to Client a posting file and a separate reversal file each business day for all payments entered and scheduled
for processing since the last processing cycle (usually the same time the prior business day).
I. The "Posting Fife" contains information on that processing day's principal payment amounts and typically includes: (i)
Information on the consumer receiving credit for the payment, (ii) The credit account number (the Client's account
number); (iii) Payment amount; (iv) Effective date, and (v) Any additional information required to post the payment to the
Client's accounts receivable system.
2. The "Reversal File" contains information on that day's principal payment amounts that have been returned for any reason,
including NSF (insufficient funds), charge back, account closed, etc, and includes information on the consumer who
originally received credit for the payment, including: (i) The credit account number (Client's account number); (it)
Amount; (iii) Effective date, and (iv) Any additional information required to reverse the payment from the Client's
accounts receivable system.
The transactions in both of these files will be (check one):
❑ Segregated into multiple files based on "Payment Type" (Credit Cant, ACH, Debit Cards)
❑ Annotated to indicate the type of payment.
SPI will submit payments included in the Posting File to the ODFI, merchant, or credit/debit processing network (as applicable) to
request the debit of the consumer's account in the amount of the principal amount plus any applicable convenience fee (which will be
aggregated for one debit). The total dollar value of these charges/debits is referred to as the "Payment Total" for the particular
transaction type (i.e., payment total for credit cards). The "Payment Total" amount less the aggregate dollar amount of any
convenience fees will be the "Client Total".
C. Settlement to Client. SPI shall credit the "Client Total" using an ACH credit to the account designated by the Client. This amount will
equal the sum of the principal payment amounts included in the Posting file for the same processing day. SPI shall initiate a separate ACH debit
(inclusive of a separate charge back fee) to the same account for charge back/remm items identified since the last processing cycle.
D. Reports. SPI shall provide Client with reports for each payment type (i.e., ACH, credit card or debit card) showing number and dollar
amount of transactions, reversals and returns, SPI convenience fees and other information as mutually agreed to by the parties.
E. Consumer Disclosures. Customer receipts and disclosures, including ACH authorizations (discussed below), IVR scripts and web
pages will be provided at Client's expense in a form and manner agreed to by the parties and approved by Western Union. The parties agree that
Western Union may require such receipts and disclosures to contain Western Union branding to comply with state money transmitter laws, as
determined by Western Union in its sole discretion.
F. ACH Authorizations. ACH debits conducted through the SPI Service utilizing the SPrs ODFI are limited to prearranged payment and
deposit entries ("PPD") and intemet-initiated entries ("WEB"J. Client shall, be responsible for obtaining authorizations in accordance with the
following SPI approved processes:
For Interactive Voice Response ("IVR") Transactions, Client shall obtain authorization for a PPD coded debit. PPD's
are debits initiated by an organization pursuant to a standard or a single entry authorization from the customer to effect a
transfer of funds to or from the customers account. The PPD code, used in the context of an IVR transaction, requires
electronic authorization rather than oral. The PPD code is used when the customer authorizes the payment through the
following two steps. The Client, in conjunction with SP1, must notify each customer who could potentially make an ACH
payment through the IVR that by using the IVR, the customer is authorizing an ACH debit to be made against his bank
account. This notification could be made through a letter sent to all customers, or through an insert in the billing statement
or special language printed on the billing statement. This notification must clearly and conspicuously state the terms of
making an ACH payment through the IVR, as well as how a customer can revoke ACH authorization. In addition, NACHA
requires that a commercially reasonable means of authenticating the consumer be utilized. This authentication requirement
reduces the risk of fraud and mistakes.
For Intemet Transactions, Client shall obtain authorization for a WEB entry coded debit. Web entries are debit
transactions initiated by an originator pursuant to an authorization that is obtained from the customer via the Internet to
effect a transfer of funds from the customers account. The NACHA Rules require that an authorization be in a writing that
is signed or similarly authenticated by the customer. In the context of WEB entries, this requirement may be satisfied if the
063
Letter of Agreement
Page: 6
Client and SPI assure that the customer is able to read the authorization language displayed on a computer screen, prompt
the customer to print and retain a copy of the authorization for his records (and provide a hardcopy of the authorization if
requested to do so) and require the customer to demonstrate affirmative consent to the authorization by requiring the
customer to click or an "I Agree" button. The authorization must clearly and conspicuously state its terms and (for
recurring payments only) describe how the customer may revoke ACH authorization.
For Call Center Trunsacfions, Client shall obtain authorization for a PPD coded debit. PPD's are debits initiated by an
organization pursuant to a standard or a single entry amborization from the customer to effect a transfer of funds to or from
the customers account. The PPD code, used in the context of a call center transaction, requires that the consumer be
authenticated using a commercially reasonably means. The Client shall ensue that its customer service representatives
include statements regarding (1) the date on or after which the consumers account will be debited; (2) the amount of the
debit entry to the consumer's account; (3) the consumers name; (4) a telephone number that is available to the consumer
and answered during normal business hours for customer inquiries; (5) the date of the consumers oral authorization; and
(6) a statement that the authorization obtained from the consumer will be used to originate an ACH debit entry to the
consumer's account.
5 Customer Payments and Fees. In consideration of and for the utilization of the Service, spi will assess a convenience fee to Customers
utilizing the Service which Ice shall be determined by SPI in its sole discretion. This fee will be for each transaction, regardless of the amount
involved. Customer will be advised of [his fee and the specific dollar amount and be given the option of accepting or rejecting this convenience fee
and the attendant Service. No fee will be assessed to Client for this service.
064
RESOLUTION NO.
A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY
COUNCIL OF THE CITY OF AZUSA, AWARDING A
CONTRACT FOR THIRD PARTY UTILITY BILL PAYMENT
SERVICES TO SPEEDPAY
WHEREAS, the Utility Board/City Council encourages and supports
providing new services to utility customers; and
WHEREAS, the Utility Board/City Council encourages and supports
customers paying for services used; and
WHEREAS, Azusa Light & Water proposes awarding of a two-year contract
to SPEEDPAY for third -party utility bill payment services; and
WHEREAS, pursuant to Section 78-37 of the Azusa Municipal Code, the
Utility Board/City Council may from time to time establish and amend its Schedule of
Charges and Rules and Regulations concerning utility services provided by its Light &
Water Department.; and
WHEREAS, Azusa Light & Water has established a third -party utility bill
payment service; and
WHEREAS, Azusa Light & Water proposes to implement the following
additions and changes to the current charges and Rules and Regulations:
1. Electric Rule No. 8, Item F, and Water Rule No. 7, Item E, Rendering and
Payment of Bills, CREDIT CARD CHARGE: changes to take effect November 1, 2003,
text to be deleted is highlighted in strikeeut and text to be added is highlighted in
underline.
;and
WHEREAS, these modifications are intended to improve and enhance the
service which the Light & Water provides to the community and customers; and
WHEREAS, the Utility Board/City Council has determined that the proposed
changes are based on staff analysis and recommendation.
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, DOES FIND AND DECLARE THAT:
065
SECTION 1. Adoption of Contract. The Utility Board/City Council hereby
adopts the Contract for third party utility bill payment services to Speedpay and is
incorporated herein as set forth in full.
SECTION 2. Adoption of Amendments. The Utility Board/City Council
hereby adopts the amendment to the Schedule of Charges and Rules and Regulations
set forth in Exhibit "A" which is attached to this Resolution and is incorporated herein as
set forth in full.
Effective Date. The agreement shall become effective on October 27, 2003.
The amendments to the charges and Rules and Regulations noted on as item 1, shell
become effective November 1, 2003.
PASSED, APPROVED AND ADOPTED this 27th day of October 2003.
Cristina C. Madrid
Mayor
06GO
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 27th day of October 2003, by the
following vote, to wit:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
Vera Mendoza
City Clerk
067
AZUSA
LIGHT k YlATFI
ADDENDUM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2007
SUBJECT: ADDENDUM NO. 1
Please accept the attached addendums for the Utility Board Meeting on October 27, 2003:
1. Page 53-54 of item IV=B. Third Party Utility Bill Payment Services.
j
2. Page 65-67 of item IV -B. Third Party Utility Bill Payment Services.
Prepared by:
Steven Yang, Administrative Technician
AZUSA
IIGNT R "NATER
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIEk^V
DATE: . OCTOBER 27, 2003
SUBJECT: RESOLUTION TO AWARD CONTRACT FOR THIRD PARTY UTILITY BILL PAYMENT
SERVICES TO SPEEDPAY
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution amending Azusa Light
& Water Rules and Regulations; award a two-year contract to Speedpay for utility bill payment
services for collection by credit card, debit card, automatic clearinghouse (ACH), and
electronic check; and authorize the City Manager to sign the Letter of Agreement.
BACKGROUND
In fiscal year 2002-03 the number of credit card payments received by Azusa Light & Water
had risen to 6,847 and debit card payments to 1,303. The related bank charges to the utility
amounted to almost $17,000.00. Additionally, the utility experienced an increase in the
number of cases of credit card fraud primarily due to the large number of credit card
payments received through the mail. These are time-consuming to investigate and resolve.
At the same time, customers have been asking for additional payment options. Residential
customers want the convenience of making payments over the telephone and we currently do
not have that capability. Some of our business customers want the ability to pay bill amounts
higher than our current $500.00 limit, which was instituted to minimize bank charges to our
utility by credit card so they can maximize their credit card benefits.
Not all other utilities, such as Southern California Edison, The Gas Company, and Verizon, take
credit card payments over the telephone due to the increase in fraud. Edison takes checks by
phone for $5.00 per transaction and The Gas Company and Verizon take ATM payments by
phone for a fee. The new payment methods, reflect the concern for possible fraud and the
high cost of bank charges. Other utility customers are becoming accustomed to paying to use
these payment methods for recurring payments.
Addendum No. 1
053
Azusa Light & Water is interested in piloting a two-year project with SPEEDPAY, a third -party
payment service that can offer the services our customers are requesting.
With the convenience of SPEEDPAY, customers can make payments 24 hours per day, 7 days
per week via a toil free telephone number, through a link from Azusa Light & Water's website
or directly from SPEEDPAY's website. During business hours, from our Light R Water office
customers can either use the pay phone in our lobby to call SPEEDPAY's toll free number or
our Customer Service Utility Representatives, including cashiers, can assist customers with
these payments via SPEEDPAY's website. Customers will only be charged a $3.95 per
$500.00 increment service charge directly by SPEEDPAY.
This will be a great convenience for customers scheduled to be disconnected for non -pay, as
they could call SPEEDPAY and make a payment, get a confirmation number proving payment,
call our office with the confirmation number, and avoid disconnection - all without having to
leave their home or office to come to our office to make the payment. Doing this process
before being disconnected can save a customer $30.00, or $50.00 - $100.00 on weekends,
in reconnection charges. (Attached is an information sheet on how the process works.)
Costs for this service would shift from Azusa Light & Water to the customer. SPEEDPAY
charges are less than those charged by other local utilities for credit card payments.
SPEEDPAY also takes the responsibility to verify payment for fraud before sending payment to
us. We can receive payments electronically as frequently as we request and send a file every
hour with payment information from 6 a.m. to 5 p.m. to populate our Customer Information
System.
SPEEDPAY has extensive experience in this field with other companies and utilities, including
Duke Energy, Illinois Power, Piedmont Natural Gas, Georgia Natural Gas, Southwest Gas,
Alliant Energy, and SPEEDPAY recently signed a contract with the Sacramento Municipal Utility
District. The Los Angeles Department of Water & Power is also considering using SPEEDPAY.
At no cost to Azusa Light & Water, SPEEDPAY will also provide the initial advertising materials
to inform customers of this service.
The attached Letter of Agreement was reviewed and approved by City Attorney, Jeffry Ferre,
of Best Best & Krieger LLP.
FISCAL IMPACT
No cost to Azusa Light & Water but there will be a savings of the bank charges. Customers
would pay $3.95 per transaction of $500.00 or less directly to SPEEDPAY.
Prepared by:
Karen Vanca, Assistant Director of Customer Care and Solutions
Attachments:
Addendum No. 1
V.5 4
/a
Speedpay-Exhibit
Speedpay Info. pdf
Speedpay Letter of
Speedpay & Rules
A.DOC
Agreerrent.DOC
Arrend Reso. DOC
Addendum No. 1
V.5 4
RESOLUTION NO.
A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY
COUNCIL OF THE CITY OF AZUSA, AWARDING A
CONTRACT FOR THIRD PARTY UTILITY BILL PAYMENT
SERVICES TO SPEEDPAY AND AMENDING THE
SCHEDULE OF CHARGES AND RULES AND
REGULATIONS GOVERNING THE ELECTRIC AND
WATER SERVICE SUPPLIED BY THE LIGHT AND
WATER DEPARTMENT.
WHEREAS, the Utility Board/City Council encourages and supports
providing new services to.utility customers; and
WHEREAS, the Utility Board/City Council encourages and supports
customers paying for services used; and
WHEREAS, Azusa Light & Water proposes awarding of a two-year contract
to SPEEDPAY for third -party utility bill payment services; and
WHEREAS, pursuant to Section 78-37 of the Azusa Municipal Code, the
Utility Board/City Council may from time to time establish and amend its Schedule of
Charges and Rules and Regulations concerning utility services provided by its Light &
Water Department.; and
WHEREAS, Azusa Light & Water has established a third -party utility bill
payment service; and
WHEREAS, Azusa Light & Water proposes to implement the following
additions and changes to the current charges and Rules and Regulations:
1. Electric Rule No. 8, Item F, and Water Rule No. 7, Item E, Rendering and
Payment of Bills, CREDIT CARD CHARGE: changes to take effect November 1, 2003,
text to be deleted is highlighted in r4okee,- and text to be added is highlighted in
underline.
;and
WHEREAS, these modifications are intended to improve and enhance the
service which the Light & Water provides to the community and customers; and
WHEREAS, the Utility Board/City Council has determined that the proposed
changes are based on staff analysis and recommendation.
Addendum No. 1
065
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, DOES FIND AND DECLARE THAT:
SECTION 1. Adoption of Contract. The Utility Board/City Council hereby
adopts the Contract for third party utility bill payment services to Speedpay and is
incorporated herein as set forth in full.
SECTION 2. Adoption of Amendments. The Utility Board/City Council
hereby adopts the amendment to the Schedule of Charges and Rules and Regulations
set forth in Exhibit "A" which is attached to this Resolution and is incorporated herein as
set forth in full.
. Effective Date. The agreement shall become effective on October 27, 2003.
The amendments to the charges and Rules and Regulations noted on as item 1, shell
become effective November 1, 2003.
PASSED, APPROVED AND ADOPTED this 27th day of October 2003.
Cristina C. Madrid
Mayor
Addendum No. I
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 27th day of October 2003, by the
following vote, to wit:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
Vera Mendoza
City Clerk
Addendum No. 1
067
AME .f
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: OCTOBER 27, 2007
SUBJECT: ANNUAL ADJUSTMENT OF REPLACEMENT WATER COST ADJUSTMENT FACTOR
The existing water rates for the Azusa Water Utility include an annual adjustment factor called
the "Replacement Water Cost Adjustment Factor (RWCAF)." This adjustment factor was
implemented following the severe drought that occurred around 1990. The drought forced
the Watermaster to set the Operating Safe Yield in the San Gabriel Basin very low, which in
turn increased our replacement water costs far above those normally anticipated in a so-
called normal water year.
In 1992, the City Council adopted a rate methodology which included a RWCAF, which was
incorporated into the City's regular water tariff. This resulted from a water rate review in
which the replacement water cost component was analyzed separately. The adjustment
factor that the City Council adopted, and which was recommended by staff, is similar to the
Fuel Cost Adjustment Factor for electricity that was first introduced in the 1970's during the oil
embargo when energy costs fluctuated regularly due to the unpredictable oil supply and costs.
The RWCAF, by tariff adopted in 1992, requires annual review, and if necessary, is adjusted.
Whenever an adjustment is required, the Director of Utilities is required to inform the Utility
Board/City Council. This memorandum provides notice of that adjustment. The RWCAF will
be adjusted for fiscal year 2003-2004 to an amount of $0.09 per ccf (hundred cubic feet),
effective for all bills rendered after October 31, 2003.
Although this year has seen a better water supply from the San Gabriel River, the Main San
Gabriel Basin remains at low levels, and therefore the Operating Safe Yield has been lowered
in response to the lower levels. The current conditions have required, and will continue to
require, the purchase of a higher than normal amount ofreplacement water; the adjusted
RWCAF must therefore be continued. This year's RWCAF of $0.09 is a reduction from last
year's RWCAF of $0.16.
The Operating Safe Yield as established by the Main San Gabriel Basin Watermaster for this
fiscal year is 170,000 acre-feet, down from 190,000 acre-feet last year.
Prepared by:
Chet Anderson, Assistant Director- Water Operations
HE
f
Azusa Utility Board Meeting
October 27, 2003
AZUSA
LIGHT & WATER
AZUSA
LIGHT & WATER
Power Resources Division Monthly Report
• Status of Projects
Power Consumption Comparison
• wholesale Market Trend
• Power Resource Budget Update
11
Status of Pronkcts
•; Resource P-lannling
➢Successfully completed San Juan firming arrangement
with Public Service Company of Colorado for the
period of May through December 2004
utilities F � :ancial Reporting Improvlement
➢Completed the revamping of utilities' costs and
revenues classification for financial reporting purposes.
Will coordinate with the Finance Department and
auditors for implementation.
• disonAsh lesal`e Distribution access '%arz (DIA T)
FERC adjudicated process has commenced, Discove rly o
materials is ander way.
FERC trial staff filed a motionor ds<<,issal ofj allegations
against the C l; is winding its wwayy or FERC". S approval No
parties op -ose the motiont
MAY
JUN
CITY OF AZUSA ENERGY CONSUMPTION COMPARISON
..............
241.631 77
PERCENT
...
MONTH
--,-F,Y--02- --0-3-,- -----FY 0-3----04--
CHANGE
JUL
23,576 26,154
........... ..............
10.9 4% ...
...................................
AUG
22,502 26,714 ...'..- ..
...............
18.72% ... .......... ..
SEP
23,047 24,354"
5.67%
MAY
JUN
20,011
zo,'� i 6 .............
TOTAL
241.631 77
CITY OF AZUSA PEAK DEMAND COMPARISON
JUL
im
�,�NOOEJF
A`
rill
ALL PRICES IN
.............—
AVERAGE ,
.. .... .... AVERAGE...
ON PEAK PRICE
OFF PEkk"PRICE
m$30.96.........._..._ . ....
$18.08
31
9
97
................_.._...._$22.04................... ...........
$32.59$24.
..........
............ 53
7
$3913 .
—$2-9.1 -
............. t27.'9-4
........... . ... 54.02
cW.'fi . . ....... . . . . ..... ................
......... . . ....
40.50
$42.09 ......... . ...................
. . . ....... .
$30.40
.................... .-- .........................................................
.49
$21.44
.........................
$50.59
..................................................................
$27.39
"I
$33.75
Power Resource Cost Accounting
FY '02-'03
C:a
1
(1) (2)(3) (4) (5)
(6) '
(7)
(8)
LONGTERM SHORT TERM TRANSMISSION j ANCILLARY j SCHEDULING
TOTALWH
OLE SALE I
NET
MONTH
i CONTRACTS PURCHASES COSTS SERVICE COSTS DISPATCHING COSTS i
COSTS
REVENUES
COSTS
i JUL 03 (')
i 823,681.74 1,788,269.56614 0221,026.51' 33,873.09
2,928,654.16
(1,553,548.90){
1,375,105.26
AUG03
, 991,354.11 1,436,164.541 244,741.44 20,000.00 29,082.84
2,721,342.93
(1,322,909.00)
1,398,433.93
SEP 03
981,621.29 I 732,795.31 ' 244,741.44 20,000.00 ! 24,872.85
2,004,030.89
(785,825.00)
1,218,205.89
—OCT03
I !
0.00
j
0.00
I NOV 03
f- DEC 03
I i
0.00
0.00
_ _
_0.00
0.00
JAN 04
-
0.00
(
0.00
j
I
0.00
---�----
0.00
__FEB -04
MAR 04
--- --. _ -.....--J--'- ----
-- --
0.00
0.00
I. APR 04
--------_�___.--f-----:....-
I
--- --- �---
0.00
0.00
( MAY 040.00
I JUN 04
0.00
—
0.00
TOTAL
$2,796,657.14 { $3,957,229.41 $751,286.14 $61,026.51 $87,828.78:
$7,654,027.98
($3,662,282.90)!.$3,991,745.08
(')
For the month of July2003, San Juan Unit#3 Replacement Cost due to unit outage amounts to $266,702.30.
a
{
i i
1
I
:
(1)
INCLUDES SCPPA LONGTERM CONCONTRACTS_--
(2)
INCLUDES ALL SHORT TERM PURCHASES FOR HEDGING AND LOAD BALANCING PURPOSES
I
(3)
'INCLUDES ALL SH ORT TERM AND LONG TRANSMISSION CONTRACT COSTS ,
(4)
COSTS CHARGED BY CALIFORNIA INDEPENDENT SYSTEM OPERATOR FOR SYSTEM RELIABILITY FUNCTIONS
I (5)
INCLUDES COSTS FOR SCHEDULING AND DISPATCHING OF ELECTRICITY j
(6) _
SUM OF (1) THROUGH (5)
(7)
WHOLESALE REVENUES DERIVED FROM SALES OF EXCESS POWER +PTO BENEFITS
(8)
(DIFFERENCE OF (6) AND (7)._—
C:a
Kirkwall Substation Project
Monthly Status Report
October 27, 2003
Engineering &Construction Update
■ Demolished Existing Perimeter Fence and Started
Site Grading, Construction of Equipment and Block
Wall Foundations.
■ Installed Underground Electric Conduits Along
Gladstone Street Between Vincent and Vernon Ave.
■ Delivered Two (2) 66/12kV Substation Power
Transformers. Metal Clad Switchgear Is Scheduled
for Delivery in December 2003.
■ Coordinate with Edison - Design of 66kV Switchyard
and Relocation of Affected Power Lines in Front of
Kirkwall Substation.
C)
Contract Negotiation Update
■ The City along with Cities of Banning, Colton, and Riverside filed
a Motion for Declaratory Order with FERC claiming
discriminatory treatment by Edison against the Cities in the
provision of wholesale distribution services.
■ Due to the interrelated issues in the Motion and the Kirkwall
Substation interconnection issues, Edison has slowed down the
negotiation process.
■ It is expected that negotiations will resume after Edison files its
answer to Cities' Motion on October 14, 2003.
■ The delay is not expected to impact the in-service date of the
Kirkwall Substation.
Funds and Expenditures Update
SUMMARY
KIRKWALL SUBSTATION RIND PROCEEDS
KIRKWALL SUBSTATION TOTAL COST
FIXE) COST (A)
BLACK & V EATCH
SCE
NAVIGANT
LAND ACOUISTION
TOTAL (A)
ON-GOING COST (B)
CONTRACT AMOUNT
$9,200
$40,000
$4,400
$720,000
$773,600
BILLING %OFCONTRACT AMOUNT TODATE
$9,200
SERIES B
SERIES 0
CATB30RY
TAX-EXEMPT
TAXABLE
BOND PROCEEDS
$5,470,000
$6,525,000
DEBTSERVICE RESERVEFUND@10%
-$547,000
-$652,500
NET BOND PROCEEDS
$4,923,000
$5,872,500
TOTAL ISSUANCE COSTS
-$197,054
-$193,935
BONDS PROCESS AFTER ISSUANCE COSTS
$4,725,946
$5,678,565
TOTAL DRAWDOWNS
-$1,404,337
-$5,500,000
AVAILABLE BOND PROCEEDS
$3,321,610
$178,565
KIRKWALL SUBSTATION TOTAL COST
FIXE) COST (A)
BLACK & V EATCH
SCE
NAVIGANT
LAND ACOUISTION
TOTAL (A)
ON-GOING COST (B)
CONTRACT AMOUNT
$9,200
$40,000
$4,400
$720,000
$773,600
BILLING %OFCONTRACT AMOUNT TODATE
$9,200
100.00°/
$40,000
100.00%
$4,400
100.00%
$720,000
100.00%
$773,600
100.00%
BLACK &VEATCH
$3,086,000
$997,179
32.31%
SCE
$5,626,000
$5,500,000
97.76%
PETE& SONS INC
$461,450
$87,426
18-95%
r
TOTAL (B)
$9,173,450
$6,584,605
71.78%
C
TOTAL COST (A) + (B)
$9,947,050
$7,358,205
73.97%
co
aMEwNON
1 1
An Interview with
Larry Anderson
Director, Utah Division of Water Resources
KEVIN R. HOPKINS
Larty Anderson, Director of the Utah
Division of Water Resources, is leading
his state's efforts to deal with the chal-
lenging water resource issues that are
affecting all states in the West—often
vexing issues like drought, water conser-
vation, population growth, and water
quality. Government West Editor Kevin
Hopkins spoke .with Mr. Anderson on
July 3 to determine how the State of Utah
was handling these challenges, and to
discuss what other states could learn from
Utah's experience.
West. While protecting the environment is
vital, we cannot lose sight of the adverse
effects that some environmental protection
measures will have on states ability to
meet their citizens water needs. The cre-
ation of wild and scenic rivers and the
designation of wilderness areas, for
example, important as these steps are, may
make it difficult to develop the necessary
water resources. Meeting new water quality
standards, especially the very strict arsenic
level requirements that were recently
enacted, will impose huge costs on govern-
ments throughout the West, particularly in
populated states. And Utah residents place
a cultural priority on healthy green land-
scapes because they provide play areas for
their children. Despite these legitimate
reasons for water usage, though, Utah resi-
dents still water their landscapes more
than they need to—as much as 25% to
G ore. So we need to develop a greater
public -Awareness of water waste in order to
c?eate an ethic of conservation in our state.
GW: is tliat happening? Are the people of
Utah beginning to conserve water
resources?
"Our goal is to f duce per capita
sumption �n (Utah by 25% befo
GW: What are the key water -related chal-
lenges that the western states are likely to
face in the decade ahead?
DIR. ANDERSON: With continued growth in
the West, competition for the limited water
supply will certainly be a major problem.
The degree of difficulty will vary among
the states, depending upon how aggressive
a state has been in preparing to meet the
needs of a growing population. I believe_
the key for all states, though, lies in
making better, more efficient use of exist-
ing water supplies—for instance, relying
more on surface water during wet cycles
and turning more to ground water during
dry cycles.
Environmental issues also have impor-
tant implications for water supply in the
the siipaller co)iamunities. We have to
rem er that mudvQf the West really is
pan o the great Amen
limited water supplies, so we have to strike
a reasonable balance when imposing new
rules like these
GW: How do Utah's water -related chal-
lenges differ from those of other states in
the West?
DIR. ANDERSON: Utah has to work even
harder at water conservation than many
other states because we have very high per
capita water usage—higher than in any
other state in the U.S. except for Nevada.
There are some reasons for this. Utah's
average .family size is considerably greater
than for the rest of the nation. Residential
lot sizes are larger than in more densely
rnurnuf ur�urI1RS7 JULY/AUGUSI'2003� 12
muutnnu[niu
ter con -
2050."
DIR. A ERSON: Actually, they are doing
qgiw well, as it turns out. Some time ago,
we established a goal of reducing per
capita water consumption in our state by
at least 25% before 2050. And we're well
on our way. Over the last two years, per
capita water usage in Utah has declined by
about 10%.
GW: How has Utah managed to reduce
water usage levels by so much?
DIR. ANDERSON: One of the most effective
steps we have undertaken is an extensive
education and media campaign to encour-
age people to conserve water and to
demonstrate how theycan do that. In
addition, the Governor's Office has been
very supportive of our water conservation
campaign and has created the 'Governor's
Water Conservation Team" to
support the program. I'm pleased to
say that the people of Utah have
reacted very positively to these mes-
sages. Of course, Utah is in the fifth
year of a drought, so our people have
been able to see first-hand that what
we have been saying is true, and that
has given them an even more per-
sonal reason to be responsive.
GW: You have talked about what the
State of Utah has been doing. Are
Utah's local governments also
helping to resolve these critical water
issues?
DIR. ANDERSON: Very much so. The
Jordan Valley Water Conservancy
District, for instance, has been a
major player in water conservation.
They have a very important role in
this respect, since they oversee water
Usage for the rapidly growing western
and southern suburbs of the Salt Lake
This map illustrates drought conditions in Utah as of
May 2003, the most recent data available
valley. One program they have put in place
is to display several different kinds of low-
water -usage landscapes at their offices so
that the Valley's residents can [cam first-
hand how they can have both beautiful
lawns and low water consumption. In part
bemuse of the District's efforts, xeriscap-
ing—creating a beautiful, low -water -use
ambiance for yards—has become more
popular in the Valley, and this has helped
to reduce water use because such yards
require only a fraction of the water that a
traditional Kentucky bluegrass yard does.
The Washington County Water
Conservancy District in southern Utah,
which encompasses the fast-growing St.
George area, has taken similar steps. And
both districts. as well, as our office have
hired water conservation specialists, which
helps to make sure that water conservation
issues receive- the attention in local deci-
sion-making that they deserve.
GW: What lessons can other states in the
West learn from Utah's experience?
DIR. ANDERSON: There are a couple of
areas where we have had particular success
that.I think have helped us to achieve our
water supply goals faster than we had
hoped. One initiative that has been under-
way is the conversion of agricultural water
usage to municipal and industrial pur-
poses. In a number of western states, this
transition has been fraught with much
contention. In Utah, however, the conver-
sion process has actually gone quite
smoothly. For some Utah farmers in fast-
growing urban areas, working the land has
become difficult and, in some cases, it is
more lucrative to sell rather than to con-
tinue farming. We at the state level
have tried to facilitate the conversion
of agricultural water to municipal and
industrial uses by developing a good
working relationship with our farming
communities, and by always having
open lines of communications.
A similar situation has characterized
our water conservation efforts. We
haven't enacted any new statewide
conservation regulations, although a
few cities and communities have done
so. Instead, we have focused on educa-
tion and outreach, asking people to
understand the dimensions of the
problems that we face as a state and
then encouraging them to do the right
things. I happen to believe that the
people of Utah not only want to do
the right thing, but that they will do
so if they have the information they
need. And I can tell you: if our people
continue to respond in the way that
they have over the past two years, then
we will meet our water supply goals—well
ahead of schedule.
D. Larry Anderson is the Director of the
Division of Water Resources for the State of
Utah. He may be reached at (801) 538-7230
or, by email, at LariyAndersonQo utah.gov. For
more information on the programs of the Utah
Division of Water Resources, see:
http://u ..water.utah.gov.
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