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Agenda Packet - September 27, 2004 - UB
ti A7_USA l INT L WATIR AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL AZUSA LIGHT&WATER SEPTEMBER 27, 2004 729 N.AZUSA AVENUE 6:30 PM AZUSA, CA 91702 AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON DICK STANFORD DAVE HARDISON VICE CHAIRPERSON BOARD MEMBER CRISTINA G MADRID IOSEPH R. ROCHA BOARD MEMBER BOARD MEMBER 6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call 1. PUBLIC PARTICIPATION (PersoWGroup shall be allowed to speak without h7terrupdon up to five (5)minutes madmum time, subject to compliance with applicable meetingruies. Questions to the speaker or responses to the speaker's questions or comments,shaObe handled after the speaker has completed hi**er comments. Publk Particip don will be limited to sixty(60)minutes time.) The Consent Calendar adopting the printed recommended action w111 be enacted with one vote. IfStaffor Councilmembers wish to address any item on the Consent Calendar Individually, it will be considered under SPECIAL GALL ITEMS. y. lI. CONSENT CALENDAR A. minutes. Recommendation: Approve minutes of regular meeting of July 26, 2004 as written. LJ II-A.UB Mm 3u1y26.doc B. Contract for Proiect LD2004-1 with Perry C.Thomas Construction. Inc. Recommendation Award contract to Perry C. Thomas Construction, Inc. in the amount of$ 203,152 for furnishing and installing electric street light system as per plan and specifications for Project LD2004-1. II-B.Cc trait Award to Perry C.Thones C C. Grant Easement from Todd Azusa, LLC. Recommendation: Accept Grant of Easement for electric facilities at 720 N. Todd Avenue and authorize City Clerk to record same at Office of the Los Angeles County Recorder. MI II-C. Faserrent-Todd.doc D. Employee Incentive Pronrams. Recommendation: Approve separate employee Incentive programs for Call Center staff, meter readers, and energy and water theft detection, similar to cashiering Incentive program previously approved. 11-D.Fxployee Incentive Prograrrs.0 E. Quitclaim of Easements Over Property In the City of West Covina. Recommendation:Authorize Utility Director to sign quitclaim of easements over property at northwest corner of Orange Avenue and Badillo Street,West Covina. Lai II-F-Quklairn Faserrert.doc F. Advertisement for Bids for Water Project W413 Variable Speed Drives. Recommendation: Approve advertisement for bids for Water Project W-213,Variable Speed Dives at Wells No. 11 & 12. II-F.Bid for VSD Installation Well 31& 2 002 G. Notice of Completion—Capital Improvement Project W-186. Water Main Replacement. Recommendation: Accept CIP Project W-186,Water Main Replacement, and direct City Clerk's Office to execute Notice of Completion and record same at Office of the Los Angeles County Recorder. . INIZI IIG.NDC-HenkeLs &McCoy W-IB6.doc H. Advertisement for Bid for Project W-194. Cypress Street Main Distribution Main Replacement. Recommendation: Approve bid specifications and authorize City Clerk to advertise for bids for Water Project W-194, Cypress Street Main Distribution Main Replacement. II-H.Bid Cypress SL Main Replacerrentdo 1. Advertisement for Bids for Landscape and Irrigation Maintenance for Azusa Ught &Water Facilities. Recommendation: Approve specifications for landscape and irrigation maintenance services for Azusa Light 8.Water and authorize advertising for bids. II-L LandscapeMalnt-BkFS j. Advertisement for Bids for lanitorial Service for Azusa Light&Water Facilities. Recommendation: Approve specifications for janitorial services for Azusa Light 8.Water and authorize advertising for bids. II-]. Jantore5ew-BidSpei 111. STAFF REPORTS/COMMUNICATIONS A. Update on Systems 8.Software Customer Information System M-A.S&S CLS Npdate.DDC B. Public Power Week: October 3-9, 2004 L III-B.Public Power ,t - Week.doc 3 003 C. Monthly Power Resources Update ra-G Moly Power Res Rpt.ppt D. Legislative and Regulatory Update III-D.tegisiatNe Update.ppt E. Fuel Cost Adjustment for San Juan Resource M-E.San Juan FCA.doC F. a Quarter Work Pian Updates III-F.WOW Update.doC G. Power Report: Municipal Utility Credit Ratings ul-C, Mun1dpaUtftyCredtF H. Certificate of Appreciation from Azusa Unified School District ` 1. Nomination for Water Quality Authority Board Member and Alternate Core IV. DIRECTORS' COMMENTS I SCS S� X V. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION Government Code Section 54956.9 (a) IGrkwall Substation Agreements ,�ne� �,�1(/•" k ' FERC Docket No. ER 04-6675 a V1. ADIOURNMENT A. Adjournment. '7n compliance with the Americans with D/sabllftiesAct,ifyouneed spedal assistance to participate in a dtymeet/t please contact the City C/erir at 626-812-5229. Arodfleadon three (3) workbW days prior to the meeting or time when special seivices are needed of//assist staff In assuring that reasonable arrangements can be made to provide access to the meedWg." 5 005 's u CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY, JULY 26, 2004 - 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, ROCHA, CHAGNON, MADRID ABSENT: BOARD MEMBERS: STANFORD ALSO PRESENT: Also Present City Attorney Martinez, Director of Utilities Hsu, Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang, Assistant Director of Electric Operations Ramirez,Assistant City Manager Person, City Manager Gutierrez,Administrative Technician Yang, Assistant Director Customer Care/Customer Service Vanca, Electric Engineer Langit, City Clerk Toscano, City Clerk Mendoza. Public Participation Pub Part None. None The CONSENT CALENDAR consisting of Items II- A through II-L, were approved by motion of Consent Cal Board Member Hardison, seconded by Board Member Rocha and unanimously* carried,with the Approved exception of items 11-B and 11 J, Mayor Madrid abstained from the minutes as she was not in attendance at that meeting. A. The Minutes of the regular meeting of June 28, 2004, were approved. Min Appvd B. SPECIAL CALL ITEM. Spec Call Item r C. Approval was given to amend the refuse contract budget for fiscal year 2003-2004 for an Amend 03-04 additional $126,400, to the.refuse expense account and revenue account to allow for final Budget payment to Athens Services. Athens D. Approval was given to amend the fiscal year 2004-2005 Utility Department Budget to Amend 04-05 increase the Water Division budget by$260,600, Electric Division budget by$293,344, and Budget Customer Service Division budget by $11,000, all to cover omitted projected Utility overtime/standby time costs; approval of an increase in the Customer Services Division budget by $100,000 to cover omitted estimated regular time costs/benefits; and add Customer Service Representative I (1 fulitime of FT) position and two part-time customer Service Representative 1 (1 fulltime equivalent or FTE) positions together with an increase of $84,342 to the Customer Service Division budget to cover the cost of these positions. E. Approval was given to amend the Western System Power Pool Agreement (WSPPA) with Amend Agmt Panda Gila River, L.P. and authorize the Mayor to execute same. WSPPA F. A RESOLUTION OF THE UTILITY BOARD/CIN COUNCIL OF THE CITY OF AZUSAACCEPTING Res. 04-055 CERTAIN GRANT EASEMENT AND DIRECTING THE RECORDING THEREOF. (Azusa Mobile Grant of Esmt Home Park LLC) G. Approval was given for a contract For mail-in utility payment processing with R T Lawrence Mail-in pymt Corporation, a three year contract and authorize Director of Utilities to sign the Professional Process Services Agreement. RT Lawrence H. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSAACCEPTING Res. 04-056 CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF. (Heavenly Pet Grant of Esmt Resort for Fire Service Line— 1741 W. San Bernardino Ave, WC) I. Approval was given to award the contract for Destruction of Three Water Wells, Project W- Dest 3 wells 195, to Beylik Drilling, Inc. Beylik Drilling J. SPECIAL CALL ITEM. K. Approval was given to reject sole bid from C.T. &F. Inc. in the amount of $287,540, for Bid Rejection Project LD 2004-1 to furnish and install underground electric street light system and Underground authorization was given to re-bid project. Elect St Light L. The Professional Services Contract for the Preparation of Complete Electric Distribution Prep Elect System Study, was awarded to RW Beck in the amount not-to-exceed $75,873.00 and the Dist Sys Sty City Manager was authorize to execute same. Special Call Items Spec Call Assistant Director of Electric Operations Ramirez responded to questions from Board Members Asst Dir regarding the rejection of sole bid for renovation to the electric yard at 1020 W. Tenth Street and Electric the requested authorization to re-bid the project. He noted reasons why there was only one bid Operations stating that the timing was not right; many contractors were busy doing summer or school jobs, Comments the bid time was a little on the short side, but also that there is definite interest in the project and Renovation that there will be more bidders the next time the project is presented for bid. He stated that he Elect Yard reviewed the project with the architect to try and cut down expenses, he listed the items and discussion was held between himself and Board Member Hardison regarding the issue. 07/26/04 PAGE TWO 007 ? Moved by Board Member Hardison,seconded by Board Member Rocha and unanimously*carried Bid Rejection to approve the rejection of sole bid from ABEAM Construction in the amount of$1,518,000, for Renovation the renovation to the electric yard at 1020 W. Tenth street and that authorization be given to re- Elect Yard bid the project. Chairperson Chagnon addressed item regarding the sale of Water Property at 16706 East Cypress Chagnon Street in Covina, suggesting that the City save money by not listing it with an agent and perhaps Comments utilizing a/the bidding process instead. Discussion was held between Board Members and City Discussion Attorney Martinez regarding the issue. Assistant to the Utilities Director.Kalscheuer suggested that staff investigate different realtors and Kalscheuer listing options and advised that he will make a recommendation at the September 7, 2004, Comments meeting. The Mayor suggested local realtors. Board Member Hardison offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, FINDING THAT Res. 04-054 THE PUBLIC INTEREST AND NECESSITY REQUIRE THE SALE OF SURPLUS PROPERTY, DECLARING Intent to ITS INTENT TO SELL RESIDENTIAL PROPERTY LOCATED AT 16706 EAST CYPRESS STREET Sell 16706 E. (ASSESSOR PARCEL NO. 8419-022-270) AND SETTING A HEARING FOR CONSIDERATION OF Cypress St PROTESTS. Surplus Prop Moved by Board Member Hardison, seconded by Board Member Rocha to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: BOARD MEMBERS: HARDISON, ROCHA, CHAGNON, MADRID NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: STANFORD Board Member Madrid asked questions regarding items II-F, Acceptance of Grant of Easement Madrid from Azusa Mobile Home Park, LLC. why an easement is needed at this time and item 11-G, Questions Contract for Mail-In Utility Payments Processing with RT Lawrence Corp., with regard to living wage requirements; staff responded and the information regarding living wages would be provided in memo form as soon as possible. Scheduled Items Sched Items Fund Transfer from Public Benefit Charge Fund to Wholesale Power Revenue Account. Fund Trnsfr Director of Utilities Hsu advised that when the Board approved the Renewable Portfolio Standard Pub Benefit for the electric utility to comply with Renewable Resource Legislation SB 1078,It was understood To Wholesale that the procurement may cause the electric utility to pay more for the energy and that it would Pwr Rev Acct have to be subsidized; it was recommended that it partially use Public Benefit Charge and recommended that $60,000 come from that account. Moved by Chairperson Chagnon, seconded by Board Member Hardison and unanimously* carried to approve the fund transfer in the amount of $60,000 from PBC Fund to wholesale power revenue account to mitigate the market cost of Renewable Resource Procurement and also approve an appropriation increase of $60,000 in capacity and energy account of the Light Fund to pay for the market cost of Renewable Resource Procurement. Director of Utilities Hsu detailed the proposal of the San Juan Replacement Power Cost Recovery Dir of Util Mechanism,which consisted of the 1) Establishment of Base San Juan Replacement Power Cost Comments Budget, 2) Calculation of Actual San Juan Replacement Power Cost, 3) Comparison of the Cost San Juan Pwr Difference, and 4) Quarterly Cost Recovery Mechanism. Board Member Madrid expressed Cost Recover concern regarding the impact to the rate players with this type of process. Mechanism 07/26/04 PAGE THREE Assistant Director of Resource Management Tang and Director of Utilities Hsu addressed the issue ; detailing the mechanism and advantages of fuel cost adjustment and answered questions posed by the Board Members regarding time span expectation, Insurance cost, deductible, recovery, coverage, rate stabilization funds, minimum reserve, and reserve funds. Chairperson Chagnon offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING THE SCHEDULE OF Res. 04-057 ELECTRIC RATES AND CHARGES TO ADD A SCHEDULE FOR RECOVERY OF SAN JUAN Amend REPLACEMENT ENERGY COST VIA FUEL COST ADJUSTMENT CLAUSE. Schedule Of Elect Moved by Chairperson Chagnon, seconded by Board Member Hardison to waive further reading Rates and adopt. Resolution passed and adopted by the following vote of the Board Members: San Juan Replacement AYES: BOARD MEMBERS: HARDISON, ROCHA, CHAGNON, MADRID Energy Cost NOES: BOARD MEMBERS: MADRID ABSENT: BOARD MEMBERS: STANFORD Director of Utilities Hsu requested the Reclassification of Assistant Director-Power Resources to Reclass. Assistant Director of Utilities; he advised that this is a request to begin the process and that it Assistant would come back for Final approval. He stated that this is part of his plan for succession training. Director of Moved by Board Member Hardison,seconded by Board Member Rocha and unanimously carried Utilities to approve the reclassification of Mr. Bob Tang from Assistant Director-Power Resources to Assistant Director of Utilities, with no change in salary. Staff Reports/Communications Staff Rpts The Monthly Legislative and Regulatory Updates were presented,but,there were no comments or Legislative questions towards the document. Updates The Monthly Power Resource Update was presented,but, there were no comments or questions Monthly Pwr directed towards it. Resources Director of Utilities Hsu advised that the APPA Article: Industry Challenges in Changing Times is APPA Article for information purposes and the Annual Adjustment of Replacement Water Cost Adjustment RWCA Factor is also an information item. Directors' Comments Dir Cmmts Board Member Rocha invited all to attend the recognition ceremonial for Korean Veterans to be Rocha held tomorrow, July 27`h at the City Hall Flag pole. He also thanked the family of Jonathan D. Comments Jones,who achieved the Eagle Scout Rank. He advised that money will be coming from the office of Senator Hilda Solis for the purchase of land for the development of a passive park at 221 N. Soldano; he advised that he would come back with the specifics for the project. He talked about the alleys between 3`a and Hollyvale. Discussion was held regarding the Park Master Plan, pocket parks, and maintenance after they are obtained. Board Member Madrid provided an update on the Sister City Zacatecas Youth Exchange program. Madrid/corn Assistant City Manager Person advised that he will come up with an update on the status of Ms. Asst CityMgr Suzanne Avila's transition over to the River and Mountains Conservancy and he was advised to Person provide that update at the regular City Council meeting of September 7, 2004. 07/26/04 PAGE FOUR 009 City Manager Gutierrez advised that she would like to have a regular meeting on August Wwhich City Mgr was formerly being considered for cancellation, as not having a meeting for four weeks would Comments adversely impact City business. She stated that the workshop meeting for August 9'and Utility Board meeting of August 23rd will not be held, as proposed. It was consensus of Board Members to hold the regular meeting of August 16"'. It was consensus of Board Members to recess to Closed Session to discuss the following: Closed Session Clsd Sess Conference with Legal Counsel— Existing Litigation Gov. Code Sec. 54956.9 (a) Conf w/Legal Kirkwall Substation Agreements Cnsl FERC Docket No. ER 04-667 Conference with Legal Counsel — Existing Litigation Gov. Code Sec. 54956.9 (a) Conf w/Legal California Energy Crisis Refund Proceedings Cnsl FERC Docket No. EL 00-95 The Board Member recessed at 7:29 p.m. and reconvened at 8:00 p.m. Recess/rec City Attorney Martinez advised that there was no reportable action taken in Closed Session. City Attny No action It was consensus of the Board Members to adjourn. Adjourn TIME OF ADJOURNMENT: 8:01 P.M. SECRETARY NEXT RESOLUTION NO. 04-058. Indicates Board Member Stanford absent. 07/26/04 PAGE FIVE I A7nrnt a a�erUSA ry CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 27, 2004 SUBJECT: AWARD CONTRACT FOR FURNISHING AND INSTALLING UNDERGROUND ELECTRIC STREET LIGHT SYSTEM AT AREA BOUNDED BY I 1 T", 12T", ORANGE, AND ANGELENO — PROJECT LD 2004-1 RECOMMENDATION It is recommended that the Utility Board/City Council award the contract to Perry C. Thomas Construction, Inc. in the amount not to exceed Two Hundred Three Thousand One Hundred Fifty Four Dollars ($203,154), for furnishing and installing underground electric street light system as per plan and specifications for Project LD2004-1. BACKGROUND On June 28, 2004, the Azusa Utility Board approved the plans and specification for Project LD2004-1 and authorized City Clerk's office to advertise for bids. Only one company submitted a bid in the amount of Two Hundred Eighty Seven Thousand Five Hundred Forty Dollars ($287,540). On the July 260' Utility Board meeting, the Utility Board approved staff's recommendation to reject the sole bidder and authorized the City Clerk's office to re- advertise for another bid. . On September 16, 2004, new bids were received and opened at City Clerk's office. The bidders and their respective bids are as follows: Company Bid Amount Perry C. Thomas Construction, Inc. $ 203,152 Dynalectric $258,564 C.T.&F Inc. $292,710 A fourth bid was submitted by Y&M Construction in the amount of $147,620. However, Y8.M's bid was not considered in the evaluation because it was not responsive to the bid documents including the required plans and specifications. Specifically, the bid called for the installation of electrical conduit at an 18" depth instead of at the minimum depth of 36" as required by the specifications. Moreover, during the standard qualitative interview with the bidder, the bidder acknowledged that installation at the minimum depth of 36" would require YB.M to submit a revised bid with additional costs. After careful evaluation of the next higher bid, staff had determined that the bid of Perry C. Thomas Construction, Inc. has met all requirements for this Project LD 2004-1 and is hereby recommended for contract award. This bid is lower than the average bid and still represents a savings to the City in the amount of $84,388 when compared with the first sole bid which was rejected at the July Board meeting. The City had reserved the right to reject or accept any or all bids and make contract award in the best interest of City. FISCAL IMPACT This project is budgeted this fiscal year and funds are available in CIP Account # 73-001-F. Prepared by: Wen K. Vuong 012 AZUSA I l.Ili A l:' tf> CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 27, 2004 SUBJECT: ACCEPTANCE OF GRANT OF EASEMENT FROM TODD AZUSA LLC RECOMMENDATION It is recommended that the Utility Board/City Council accept Grant of Easement by attached Resolution for the subject location and authorize the City Cleric to file it in the Office of the Los Angeles County Recorder. BACKGROUND Landowner is required to grant an easement to Azusa Light &Water Department for any electric facilities to be installed in his or her property. This grant of easement allows the Utility-owner the right-of-way for operation &maintenance of such facilities. Attached herewith is the grant of easement and its Exhibit "A" and "B" for the electric facilities located within the property at 720 N. Todd Avenue. This easement was secured and will be used for right-of-way access in the operation & maintenance of underground electric conduits, cables and related substructures installed at this property. FISCAL IMPACT All costs associated with the processing of these grants of easements are borne by the developer. There is no cost to the City. Prepared by: Hien K. Vuong I—. Resolution-Easement GrantofEase entTod - .doc d.pdf 013 RESOLUTION NO. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF. THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That certain Grant of Easement executed by Todd Azusa LLC, under date of the 14th of July, 2004 to the CITY OF AZUSA a Municipal Corporation in Los Angeles County, State of California, its successors and assigns,the right of perpetual easement and right of way solely for the purpose of constructing, laying,maintaining, operating,using, altering,repairing, replacing, inspecting and relocating therein and thereupon and/or removing there from electrical utility lines and related facilities,with any and all connections and devices necessary thereto for the transportation, distribution and/or supply of electricity to the property, in, on, over,under across and along the following described real properties situated in the CITY OF AZUSA,Los Angeles County, State of California,to wit: See Grant of Easement attached hereto. Said Grant of Easement is hereby accepted and the City Clerk is hereby authorized and directed to cause the same to be filed for record in the office of the County Recorder of said County. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED THIS 27h day of September, 2004 Cristina C. Madrid,Mayor ATTEST: Vern Mendoza, City Clerk I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City Council of the City of Azusa at a regular meeting of the Azusa Light&Water Utility Board on the 27`" day of September,2004. AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Vera Mendoza, City Clerk h RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: The City of Azusa THIS DOCUMENT IS FILED AT THE Light and Water Department - REQUEST OF THE CITY OF AZUSA 729 North Azusa Avenue PURSUANT TO SECTION 6103 OF P.O.Box 9500 THE GOVERNMENT CODE. NO Azusa,CA 91702 FEE SHALL BE CHARGED THEREFOR. (SPACE ABOVE THIS LINE POR RECORDERS USE) GRANT OF PERMANENT EASEMENT FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, TODD AZUSA, LLC ("Grantor"), does hereby grant to the CITY OF AZUSA, CALIFORNIA, a municipal corporation, its successors and assigns, and its and their employees, contractors and agents ("Grantee"), the permanent easement and right-of-way to construct, maintain, operate, use, repair, alter, replace, and remove electrical systems and communications systems consisting of, but not limited to, overhead power lines, poles and fixtures, guy wires, underground conduits, pull boxes, transformers, pads, vaults, cables, conductors and other fixtures and appliances, with the necessary appurtenances, for conveying electric energy to be used for light, heat, power and for transmitting data by electrical means and/or other purposes ("Systems") over, under, in, along, and across the following described parcel of real property situated in the City of Azusa, County of Los Angeles, State of California: As described in Exhibit "A" and depicted in Exhibit "B" attached hereto and made a part hereof. Together with all necessary and convenient means of ingress and egress to and from said right- of-way or strip or parcel of land, free from any and all buildings, equipment, vegetation, combustible materials, or obstructions of any kind, for the purpose of constructing, reconstructing, maintaining, operating, repairing, renewing, replacing, using, altering, or removing in any manner the Systems together with any and all of the purposes hereinbefore mentioned. TO HAVE AND TO HOLD the above granted and described premises unto the CITY OF AZUSA, CALIFORNIA, its successors and assigns forever. IN WITNESS HERETO, Grantor has executed this Grant of Permanent Easement this 14TH day of July, 2004. TODD AZUSA, LLC By: David A. Parker President Chase Partners Ltd. Managing Member 015 STATE OF CALIFORNIA ) CAPACITY CLAIMED BY SIGNER COUNTY OF LOS ANGELES ) President,Chase Partners Ltd. Managing Member of Todd Azusa,LLC On July 14, 2004, before me, Maryna Danielian, Notary Public, personally SIGNER IS REPRESENTING: appeared David A. Parker,personally known to me to be the person whose name is NAME OF ENTITY subscribed to the within instrument and acknowledged to me that he executed the Todd Azusa, LLC same in his authorized capacity, and that by his signature on the instrument the person,or the entity upon behalf of which the person acted,executed the instrument. WITNESS my hand and official seal. � r4aarNaDAnnt3uN Convasovn r 1438913 i NotrnY P"r -Coditarild S Los M9 at es County / Mycamrtr Expkes Sep 11,20Q7 . aryna amelia' M co 'ssion ex ires September 11,2007 Title or Type of Document ATTE ION NOTARY: Although the information requested below is OPTIONAL, it could GRANT OF PERMANENT preven fraudulent attachment of this certificate to unauthorized documents. EASEMENT THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT Number of Pages 6—including certificate,exhibit A&B RIGHT: Date of Document July 14,2004 016 EXHIBIT "A" Legal Description Being a portion of Lots 12 and 13 of Tract No. 14072,as shown by map on file in Book 282, Pages 20 and 21,records of Los Angeles County, California, located in the City of Azusa, County of Los Angeles, State of California, described as follows: BEGINNING at the Southeast corner of said Lot 13, said point also being on the Westerly right of way line(30.00 feet in half width) of Loren Avenue, as shown on said map; THENCE South 89°51'20" West along the South line of said Lot 13 and along the Northerly right of way line (12.00 feet in half width) of the Alley as shown on said map,a distance of 273.54 feet to a point on the West line of said Lot 13, said point also being the Easterly right of way line (35.00 feet in half width) of Todd Avenue, as shown on said map; THENCE North 00°22'39" West along said West line of Lot 13 and said Easterly right of way line of Todd Avenue, a distance of 2.00 feet; THENCE North 89°51'20" East and parallel with said South line of Lot 13, a distance of 249.54 feet; THENCE North 00°08'40" West and parallel with said East line of Lot 13, a distance of 11.00 feet; THENCE North 89°51'20" East and parallel with said South line of Lot 13, a distance of 20.00 feet; THENCE North 00008'40" West and parallel with said East line of Lot 13, a distance of 72.05 feet; THENCE North 38°58'47" West, a distance of 10.21 feet; THENCE South 89°51'20" West and parallel with the North line of said Lot 13, a distance of 55.18 feet; THENCE North 00°08'40" West and parallel with the East lines of said Lots 12 and 13,a distance of 12.33 feet; THENCE North 89°51'20"East and parallel with said North line of Lot 13, a distance of 65.58 feet to a point on said East line of Lot 12 and said Westerly right of way line of Loren Avenue; T NCEuth 0 08'40" East along said East lines of Lots 12 and 13 and along said Westerly right of w y line of ore venue,a distance of 105.33 feet to the POINT OF BEGINNING. ontainin 5 cr (1,965 square feet),more or less. \, e az and th up rvision of-. � �\\ Allen7,V21 5306, x ares 12-31-05 J F:�DocumentslMichW til ity_Easement.wpd 017 EXHIBIT LOCATIONAL MAP W J U TRACT N0. 14072 z M.B. 282/20-21 APN 8605-017-414 30' I 12 65.58' 12.33' N00'08'40"W N89'51'20"E a 55.18' 589'51'20"W Z 10.21' N38'58'47"W in j j o 13 72.05' N00'08'40"W 'mooZ 2I o20.00' N89'51'20"E �o Ij j 04Ln 11.00' N00'08'40"W Q Q 249.54' N89'51'20"E Z p 273.54 ALLEY S89.5120 tAJ Q P.0.8. 20 19 18 I � 45' 135' 30' 0 h FOOTHILL BOULEVARD INDICATES EASEMENT AREA _Np N - 5 4 OF CAL�� E�1� All AZUSA UGxi 4 T.wiFR CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: - JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 27, 2004 SUBJECT: REQUEST APPROVAL TO FORMALIZE EMPLOYEE INCENTIVE PROGRAMS RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve separate employee incentive programs for Call Center staff, meter readers, and energy and water theft detection, similar to the cashiering incentive program previously approved. BACKGROUND Cashiering In October 2002, the Azusa Utility Board/City Council approved cashiering standards and a reward/incentive program for Customer Service Representatives performing this function. Cashiers needed to have an accumulation of cash outages of less than $5.00 per 1,000 payments per month and meet the goal each month of the quarter. The purpose of the standards was to improve accuracy and provide outstanding customer service. Using a small incentive program helps staff keep the goal in mind when setting priorities. To reward success in a given quarter, each cashier could select among the following rewards that were established by staff: J Extended lunch by one hour for one day during the month following end of quarter. J Leave one hour early one day during the month following end of quarter. J $10.00 restaurant or movie gift certificate (budgeted in Employee Awards account #31-40-711-920-6210). As a result, goals were attained in four of the seven quarters during the program's operation. In all cases except two, employees selected the leaving one hour early one day reward. The other two were instances where the same employee selected the $10.00 restaurant gift certificate. Oil Ck Call Center We recently participated in a Southern California Public Power Authority benchmarking study. From it we learned other areas where we can improve service and efficiency. The Call Center is one key area where all customer service representatives, except cashiers, can participate in team goals to improve service level and reduce the number of abandoned calls. To improve service, in January 2004 we began a similar incentive program on a pilot basis using the same incentives as cashiering. From the benchmarking study we learned other local municipal utilities average answering 90% customer calls in 40 seconds with 6% calls abandoned. Our goals for this fiscal year are 801/o calls answered in 40 seconds 75% of the time and 6% calls abandoned 80% of the time. This must be attained each month of a quarter to qualify for rewards. We will raise the goals each fiscal year until we meet the level of other cities. The goals were met in the first calendar quarter of 2004. Eight CSR's selected to leave one lour early one day and one selected the movie certificate. Goals were not met the second quarter. We made some operational changes to increase the likelihood of achieving our desired level of service. Meter Reading Another area we want to improve is accuracy of meter reading. Meter reading errors cause extra work for both customer service representatives and meter readers while increasing the likelihood of sending out incorrect bills. We have an opportunity to improve this by setting specific measurable goals. A reasonable yet achievable goal is three errors per 10,000 reads for each reading cycle to be achieved for each of the three months in the quarter in order for a meter reader to qualify for a reward. This would be a 33% improvement over our 2002-03 benchmarked results. Once these results are consistently achieved the allowable errors will be further reduced until the meter readers reach the top quartile in the SCPPA benchmarking study. Energy and Water Theft Detection With more training and emphasis on energy and water theft detection, staff will be able to identify instances of this source of revenue loss to Light &Water. It requires looking at a situation in a different way and taking time to investigate. Due to this heightened awareness, more cases are being identified and recoveries made. Customer service representatives, meter readers, and field service representatives all have the opportunity to identify theft. Formalizing a program with the same quarterly rewards as the other incentive programs will create a positive emphasis on this program. Incentives will be awarded upon the third confirmed theft reported or discovered by a staff member per quarter. In summary, all four incentive areas — cashiering, call center, meter reading, and energy and water theft detection, are aimed at improving our service level and efficiency, and increasing revenue through meeting target performance goals in a positive manner by offering low cost incentives. Each Customer Service employee is eligible for at least one incentive program. FISCAL IMPACT We anticipate a maximum annual impact of $400.00. This is budgeted in Employee Awards account #31-40-711-920-6210. Prepared by: Karen Vanca, Assistant Director Customer Care &Solutions 020 a 't s _. A.77LJS'A !eFj U liHl 0. %'ATFL CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES��pi DATE: SEPTEMBER 27, 2004 SUBJECT: APPROVAL OF A QUITCLAIM OF EASEMENTS OVER PROPERTY AT THE NORTHWEST CORNER OF ORANGE AVENUE AND BADILLO STREET IN THE CITY OF WEST COVINA RECOMMENDATION It is recommended that the Utility Board/City Council authorize the Utility Director to sign a quitclaim of easements affecting Tentative Tract No. 53995 (See attached map for location). BACKGROUND The owner/developer of Tentative Tract No. 53995 has requested that the City of Azusa relinquish three unusable easements on the land located at the northwest corner of Orange Avenue and Badillo Street in the City of West Covina. The three easements, one to Azusa Valley Water Company, recorded in 1958, and two to Azusa Irrigating Company, the predecessor of Azusa Valley Water Company, recorded in 1952 and 1953, are remnants of the water service to the local citrus industry provided by Azusa Valley and are no longer necessary to the operation of the water system serving this area. FISCAL IMPACT This action has no fiscal impact. Prepared by: Chet Anderson, Assistant Director- Water Operations E QuWaimDeed.pdf 621 r RECORDING REQUESTED BY WHEN RECORDED MAIL TO AND MAIL TAX STATEMENTS TO NAME Azusa Light & Water ADDRESS 729 North Azusa Avenue CITY Azusa, CA 91702-9500 STATE&UP TRE ORDER a0 ESCROW OR LOAN RO APa QUITCLAIM DEED THE UNDERSIGNED GRANTOR(s)DECLARE(s) 0 DOCUMENTARY TRANSFER TAX Is$--_—__--__----__CITY TAX$_�---_— )b computed on full value of property conveyed,or o computed on full value less value of liens or encumbrances remaining atUmeof West Covina ,and o Unincorporated area: m City of--- _____—_____—_---------- FOR A VALUABLE CONSIDERATION,receipt of which Is hereby acknowledged. hereby remise,release and forever quitclaim to D.C. Corporation the following described real property in the County of Los Angeles State of California: 1 . Easement to Azusa Valley Water Co . for waterline purposes recorded October 2 , 1958 as Instrument No.1021 , Book D233 , Page 382 . O.R. 2 . Easements to Azusa Irrigating Co. for pipelines recorded March 13 , 1952 as Instrument No. 1754, in Book 38467 , Page 439, O.R. and May 20, 1953 as Instrument No. 2831 , in Book 41770, Page 389 , O.R. Dared__- September 28, 2004 — ----__—___--_— ___-- Jose Director of Utilities City of Azusa STATE OF CALIFORNIA, COUNTY OF 1 S.S. On before me, ,(hare assert name and We of the officer). personally appeared -- -- personally kno n to me(or proved to me on the bass of sabsfact evidence)to be the person(s)whose name(s)Were subscrmed to the within,nstrumenl and acknowledged to me that helshellhey exewled the same in ru nwithev authonma capaaty(ies).and that by hrs/hedaer signarure(s)on the instrument me pemon(s),or the entry upon behaff of which the person(s)acted,exewted the instrument WITNESS my hand and official seal &gnak,ro --- evncen oak 022 ff u I ZI:c -JU o ns, L Is- ,�Zz 1/100, AILLp jo L---j X 0 E A A 9 ca to r D co 0 70 kR0 co pri c=MV--N AVE Lr:n L L _ _�� , F-IF7 X, r�rain UL ❑ 0 EC 22, Isola L LE 11:1 L " I x %-g Olt FE 2 evvla N, u res Fere—d-AVIT__jL Gas 023 ff A7USA LIGHT R WAT11 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: SEPTEMBER 27, 2004 SUBJECT: APPROVAL TO BID PROJECT W-213, VARIABLE SPEED DRIVES AT WELLS NO. 1 1 AND NO. 12 RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve the Advertisement for Bids for Water Project W-213, Variable Speed Drives at Wells No. 11 and No. 12. BACKGROUND Wells 1 1 and 12 were designed to put out a certain amount of water. The underground conditions have limited the amount of water produced to less than the design flowrate and the production crew has had to throttle back the pump output to avoid overpumping the wells. Because throttling back the output of the wells to avoid overpumping results in inefficient operation of the wells, the variable speed drives are necessary to allow the production crew to vary production efficiently with changes in underground water conditions. FISCAL IMPACT Approval to let this project out to bid has a minimal fiscal impact for the cost of duplication and handling of bid packages. Fiscal impact of the project will be discussed in detail when the low bid contractor has been determined, and the Board is asked to approve a contract for the project. Prepared by: Chet Anderson, Assistant Director of Water Operations AZ "4��1 x w�USA [ry CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIEs.� DATE: SEPTEMBER 27, 2004 SUBJECT: NOTICE OF COMPLETION - CAPITAL IMPROVEMENT PROJECT W-186, WATER MAIN REPLACEMENT (PASADENA AV., OLD MILL RD., ALAMEDAAV., AND STEIN LANE) RECOMMENDATION It is recommended that the Utility Board/City Council accept Project W-186, and direct the City Clerk's Office to execute the Notice of Completion and also have the same recorded at Office of the Los Angeles County Recorder. BACKGROUND The Water Division designed these water main replacements to replace water mains that were experiencing problems with leaks and that were, for various reasons, experiencing flow and pressure problems. The mains replaced in this project had both leak problems requiring constant repair and delivered less flow than is optimal for current residential area standards. Also, the mains replaced are in streets designated by Public Works,as streets to be resurfaced this year. FISCAL IMPACT The fiscal impact of approving Notice of Completion involves the payment, following the statutory 35 day waiting period, of $52,013.08 currently held by the City as retainage on this project. Prepared by: Chet F. Anderson, P.E., Assistant Director, Water Operations ,'f-'• NOC W-186.pdf - n O 9 5 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: NAME STREET ADDRESS CITY.STATE 6 ZIPCODE SPACE ABOVE THIS LINE FOR RECORDER'S USE 'i v\ \ � , I \91.h.�lc`SN�u.7 ;a vim .*-1 i[ !. t t��`_v {>!F.L.� ! do c..Q�( :✓s. .ri� ".�.k��\ �4.H{ _�.�., Jam „ _ _ t'.�,. ... ...., M NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion, (See reverse side for Complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is City Of Azusa 3. The full address of the owner is 213 East Foothill Boulevard Azusa CA 91702-1295 4. The nature of the interest of estate of the owner is:In fee. IIF OTHER THAN FEE,STRIKE"IN iEE"AND INYPf,FOO E%AM0.F. WPCHASER ONCEP CONipACi OF RIPCHASEJ OR LESSEE-) 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAMES ADDRESSES 6. The full names and full addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to: NAMES ADDRESSES 7. A work of improvement on the property hereinafter described was completed on Sept ember 27, 2004 The work done was: Water Main Replacement Project W-186 8.The name of the contractor,it any,for such work of improvement was Henkels & MCCOV IF NO CONTRACTOR FOR WORK OF IMPIIOVEMEM AS A WHOLE,INSERT"NONE I DATE OF ONTMCTI 9. The property on which said work of improvement was completed is in the City of Azusa County of Los Angeles ,Stateof CA ,and is described asfollows: Water main re=placement in Pasadena Ave Old Mill Rd Alameda Ave and Stein Ave. 10. The street address of said property is NONE (F NO STREET ADDRESS HAS BEEN OFFICIALLY ASSIGNED,INSERT NONE .) Dated: September 27 , 2004 (SIGNATURE OF OWNER OR CORPORATE OFFICER OF OWNED NAMED IN PAPAGMPM 2 OR HIS AGEMI VERIFICATION I,the undersigned,say: I am the ( PREthe declarant of the foregoing notice of completion; SIDENT OF MANAGER OFA,�PAgTNEP OFA, WNEN OF .ETC.I I have read said notice of completion and know the contents thereof;the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on -, at IE]ITY) (STATE) (PERSONAL SIGNATURE DF THE MONIDUAL WHO IS SWEAPING THAT THE CONTENTS OF THE NOTICE OF COMPLETION ARE TRUE.( NOTCE IIIII'IIII III(III IIIIIII VIII NO 7 I{167775 1391 14 5 or OFOAM InaF COMPLETION Pm.894R (DNF•�••• DAp °lass woLcoTTs FORMS. C. (See reverse side for additional Information) 026 1AU FNM 14 Mson AZUSA 116 1 A 'NATIR CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE`!� DATE: SEPTEMBER 27, 2004 R SUBJECT: APPROVAL TO BID PROJECT W-194, CYPRESS STREET DISTRIBUTION MAIN REPLACEMENT RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve of the bid specifications and authorize the City Clerk to advertise for Bids for Water Project W-194, Distribution Main Replacement in Cypress Street. - BACKGROUND The Water Division has an aggressive program of replacing water mains that are experiencing problems with leaks and that are, for various reasons, experiencing flow and pressure problems. The Cypress Street main, located in the City of Covina, has been particularly prone to leak problems and often requires the attention of the distribution crew to make repairs. This project will replace 5,100 linear feet of the worst portions of the Cypress Street water main. Repairs to the rest of the Cypress Street water main will take place in subsequent years. The bid specifications are available for public review at the second floor office of the Azusa Light &Water building, at 729 N. Azusa Avenue. FISCAL IMPACT Approval to let this project out to bid has a minimal fiscal impact for the cost of duplication and handling of bid packages. Fiscal impact of the project will be discussed in detail when the low bid contractor has been determined, and the Board is asked to approve a contract for the project. Prepared by: Chet Anderson, Assistant Director of Water Operations 027 A2USA en• a ,rare• CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES lV. DATE: SEPTEMBER 27, 2004 SUBJECT: APPROVAL OF LANDSCAPE AND IRRIGATION MAINTENANCE SPECIFICATIONS FOR AZUSA LIGHT AND WATER FACILITIES AND AUTHORIZATION OF FORMAL BIDDING RECOMMENDATION It is recommended that the Utility Board/City Council approve of the specifications for a three-year contract for landscape and irrigation maintenance services for Azusa Light &Water Facilities and authorize advertising for formal bids. BACKGROUND The existing landscape and irrigation contract has expired and a new contract must be awarded. To begin the selection process, a comprehensive bid specification has been developed with input from various staff at affected facilities. Azusa Light &Water takes great pride in the appearance of landscaping at its various facilities, and feels that quality maintenance will contribute to the physical beauty of Azusa and the quality of life of residents and those visiting or doing business in the City. Greenery, color, and shape are therefore the focus in the attached bid specification, which is available for public review at the City Clerk's office. FISCAL IMPACT Fiscal impact will depend on the bid results, which will be presented to the City Council/Utility Board at it regularly scheduled meeting in October 2004. Prepared by: Steven Yang, Administrative Technician Attachment: NI&LandscapeMaint- v7.doc CITY OF AZUSA AZUSA LIGHT AND WATER SPECIFICATIONS AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE THREE-YEAR CONTRACT AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON DICK STANFORD DAVID 0. HARDISON VICE CHAIRPERSON BOARD MEMBER CHRISTINA C. MADRID JOSEPH R. ROCHA BOARD MEMBER BOARD MEMBER JULIE GUTIERREZ CITY MANAGER JOSEPH F. HSU DIRECTOR OF UTILITIES SEPTEMBER 27, 2004 029 TABLE OF CONTENTS NOTICE INVITING BIDS..................................................................................................................1 INSTRUCTIONS TO BIDDERS.....................................................................................................:.2 SECURING BID DOCUMENT......................................................................................................2 PROPOSAL..................................................................................................................................2 WITHDRAWAL OF BIDS..............................................................................................................2 INTERPRETATION OF PLANS AND DOCUMENTS ..................................................................3 ESTIMATED QUANTITIES...........................................................................................................3 ADDENDA....................................................................................................................................3 DISQUALIFICATION OF BIDDERS.............................................................................................3 IRREGULARBIDS .......................................................................................................................3 MATERIAL QUALITY...................................................................................................................3 OPENINGOF BIDS......................................................................................................................3 AWARD OR REJECTION OF BID ...............................................................................................4 BIDDERS SUBMITING MORE THAN ONE BID..........................................................................4 EXECUTION OF CONTRACT......................................................................................................4 RETURN OF BIDDER'S GUARANTEE .......................................................................................4 BIDFORM........................................................................................................................................5 INFORMATION REQUIRED OF BIDDER ...................................................................................6 CONTRACTOR'S LICENSE DECLARATION.............................................................................7 BIDBOND FORM ........................................................................................................................8 SCOPE OF SERVICES................................................................................................................9 I. LANDSCAPE MAINTENANCE............................................................................................9 MOWING...............................................................................................................................9 EDGING ...............................................................................................:................................9 HARDSCAPES......................................................................................................................9 PLANTERS AND BEDDING AREAS....................................................................................9 PLANTING...........................................................................................................................10 TREES.................................................................................................................................10 FERTILIZATION..................................................................................................................10 OVERSEEDING..................................................................................................................11 PESTICIDE APPLICATION.................................................................................................11 ENVIRONMENTAL AND SAFETY......................................................................................11 11. IRRIGATION MAINTENANCE..........................................................................................11 WATER MANAGEMENT......................................:..............................................................11 IRRIGATION REPAIRS.......................................................................................................12 111. MISCELLANEOUS...........................................................................................................12 COMPENSATION ...............................................................................................................12 EXTRAWORK....................................................................................................................13 CERTAIN WORK ADVANCE NOTICE...............................................................................13 INSPECTIONS....................................................................................................................13 PREVAILING WAGES ........................................................................................................13 CONTRACTADDITIONS....................................................................................................13 SERVICE SCHEDULE...............................................................................................................15 EXTRAWORK PRICE SHEET..................................................................................................19 INSPECTIONREPORT..............................................................................................................21 AGREEMENT FOR MAINTENANCE SERVICES...........................................................................1 1. PARTIES AND DATE..............................................................................................................1 2. RECITALS............................................................................................................................1 2.1 Contractor.................................................................................................................1 2.2 Project........................................................................................................................1 3. TERMS.................................................................................................................................1 3.1 Scope of Services and Term...................................................................................1 TOB - 1 030 I 3.1.1 General Scope of Services ....................................................................................1 3.1.2 Term.......................................................................................................................1 3.2 Responsibilities of Contractor................................................................................2 3.2.1 Control and Payment of Subordinates; Independent Contractor...........................2 3.2.2 Schedule of Services .............................................................................................2 3.2.3 Conformance to Applicable Requirements ............................................................2 3.2.4 City's Representative.............................................................................................2 3.2.5 Contractor's Representative...................................................................................2 3.2.6 Coordination of Services........................................................................................3 3.2.7 Standard of Care; Performance of Employees......................................................3 3.2.8 Laws and Regulations............................................................................................3 3.2.9 Insurance................................................................................................................3 3.2.9.1 Time for Compliance..........................................................................................3 3.2.9.2 Minimum Requirements.....................................................................................4 3.2.9.3 Insurance Endorsements...................................................................................4 3.2.9.4 Separation of Insureds; No Special Limitations.................................................5 3.2.9.5 Deductibles and Self-Insurance Retentions.......................................................5 3.2.9.6 Acceptability of Insurers.....................................................................................5 3.2.9.7 Verification of Coverage.....................................................................................5 3.2.10 Safety6 .............. 3.2.11 Prevailing Wages ...................................................................................................6 3.2.12 Bonds.....................................................................................................................6 3.2.12.1 Faithful Performance Bond............................................................................6 3.2.12.2 Labor and Material Bond...............................................................................6 3.2.12.3 Bond Provisions.............................................................................................7 3.2.12.4 Surety Qualifications......................................................................................7 3.3 Fees and Payments..................................................................................................7 3.3.1 Compensation........................................................................................................7 3.3.2 Payment of Compensation.....................................................................................7 3.3.3 Reimbursement for Expenses................................................................................7 3.3.4 Extra Work..............................................................................................................8 3.4 Accounting Records ................................................................................................8 3.4.1 Maintenance and Inspection..................................................................................8 3.5 General Provisions...................................................................................................8 3.5.1 Termination of Agreement......................................................................................8 3.5.1.1 Grounds for Termination....................................................................................8 3.5.1.2 Effect of Termination..........................................................................................8 3.5.1.3 Additional Services............................................................................................8 3.5.2 Delivery of Notices.................................................................................................8 3.5.3 Cooperation; Further Acts......................................................................................9 3.5.4 Attorney's Fees ......................................................................................................9 3.5.5 Indemnification.......................................................................................................9 3.5.6 Entire Agreement.................................................................................................10 3.5.7 Governing Law.....................................................................................................10 3.5.8 Time of Essence...................................................................................................10 3.5.9 City's Right to Employ Other Contractors ............................................................10 3.5.10 Successors and Assigns......................................................................................10 3.5.11 Assignment or Transfer........................................................................................10 3.5.12 Construction; References; Captions ....................................................................10 3.5.13 Amendment; Modification.....................................................................................10 3.5.14 Waiver..................................................................................................................11 3.5.15 No Third Party Beneficiaries ................................................................................11 3.5.16 Invalidity; Severability...........................................................................................11 11 3.5.17 Prohibited Interests.............................................................................................. 3.5.18 Equal Opportunity Employment...........................................................................11 3.5.19 Labor Certification................................................................................................11 3.5.20 Authority to Enter Agreement...............................................................................11 TOB -2 031 3.5.21 Counterparts.......................................:..................................................................12 3.6 Subcontracting.......................................................................................................12 3.6.1 Prior Approval Required.......................................................................................12 EXHIBITA..................................................................................................................................13 SCOPEOF SERVICES..........................................................................................................13 EXHIBITB..................................................................................................................................14 EXTRA WORK PRICE SHEET..............................................................................................14 EXHIBITC..................................................................................................................................15 FAITHFUL PERFORMANCE BOND......................................................................................16 EXHIBITD..................................................................................................................................17 LABOR AND MATERIAL BOND...........................................................................................18 TOB- 3 032 NOTICE INVITING BIDS PUBLIC NOTICE IS HEREBY GIVEN that the City of Azusa, County of Los Angeles, State of California, will receive, at the office of the City Clerk, 213 E. Foothill Blvd., Azusa, California 91702, up to the hour of 10:00 a.m. on Monday October 18, 2004, sealed bid for the following: AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE Bids will be publicly opened and declared in the Office of the City Clerk starting 10:00 a.m. on Monday, October 18, 2004. Action will be taken on these bids at the regular meeting of the Azusa Utility Board on Monday, October 25, 2004. In order to ensure that each Contractor is familiar with the facilities covered under this contract, a formal mandatory walk-through will be held on Wednesday, October 6, 2004, starting at 2:00 p.m., in the upstairs conference room of the Azusa Light and Water Administration Building, 729 N. Azusa Avenue, Azusa, California 91702 and proceeding to each job site. Specifications and bid forms may be obtained from the office of Azusa Light &Water. No bid shall be considered unless it is made on a proposal form provided for that purpose, sealed and filed with the City Clerk at the above address, on or before the time specified for receiving bids. Each bid must be accompanied by a bidder's bond, cash, certified check, or cashier's check made payable to the City of Azusa,for an amount equal to at least ten percent (10%) of the amount bid, such guarantee to be forfeited should the bidder to whom the contract is awarded fails to enter into the contract. Pursuant to the Labor Code of the State of California, the City of Azusa has ascertained the general prevailing rate of per diem wages in the locality in which the work is to be preformed for each craft or type of workmen needed to execute the proposed contract. These prevailing rates are on file in the office of the City Clerk and will be made available to any interested party upon request. The successful bidder must pay the prevailing rates, post copies thereof at the job site(s) and otherwise comply with applicable provisions of State Law. The successful bidder will be required to furnish Labor and Material Bonds in an amount equal to one hundred percent(100%) of the contract price and Performance Bonds in an amount equal to one hundred percent (100%) of the contract price. Bonds shall be secured by a surety company or surety companies satisfactory to the City annually and admitted in California. The City of Azusa requires that all contractors be licensed with the State of California in their particular area of expertise. Per Section 7028.15(e) of the Business and Professions Code, a license contractor shall not submit a bid to a public agency unless his or her contractor's license appears clearly on the bid, the license expiration date is stated and the bid contains a statement that the representations therein are made under penalty of perjury. Any bid not containing this information, or a bid containing information which is subsequently proven false, shall be considered non-responsive and shall be rejected by the City of Azusa. All bidders are required to completely fill out the"Contractors License Declaration"contained in the bid documents. The City of Azusa reserves the right to reject any and all bids or parts thereof; and to waive any informality in such bids. Azusa Light&Water also reserves the right to reject the lowest bid if the contractor is not a responsible bidder. Vera Mendoza, City Clerk City of Azusa Publish: San Gabriel Valley Tribune Publish Date: September 30, 2004 NIB- 1 033 1 INSTRUCTIONS TO BIDDERS AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE SECURING BID DOCUMENT The Bid Document may be secured from the Azusa Light and Water, 729 N. Azusa Avenue, Azusa, California 91702. A non-refundable fee of $10.00 will be charged for each set of Bid Document and $15.00 if requested by mail. PROPOSAL In order to be considered, bids shall be made in accordance with the following instructions: A. Bids shall be made upon the forms provided therefor in the Proposal, with all items which the Bidder is bidding properly filled out; numbers shall be stated in writing and in figures, signatures of all persons signing shall be in longhand; completed forms shall be without interlineations, alterations or erasures. B. All bids submitted shall include in the lump sum or unit prices bid, all sales or other taxes of City, State or Federal Government of every nature in effect at the time of bidding. In the event the total amount does not agree with the sum of the prices bid on the individual items, the prices bid on the individual item shall govern and the total for the schedule will be corrected accordingly. C. Bids shall not contain any recapitulation of the work to be done. Alternate proposals will not be considered unless called for. No oral, telegraphic or telephonic proposals or modifications will be considered. Unauthorized conditions, limitations, or provisions attached to a proposal will render it informal and may cause its rejection. D. All proposals or bids shall be accompanied by a certified or cashier's check or bid bond in the amount of not less than ten (10%) percent of the total amount named in the bidder's proposal. Said check or bond shall be made payable to the City of Azusa and shall be given as a guarantee that the bidder, if awarded the work, will enter into a contract and will furnish satisfactory Faithful Performance Bond and Labor and Material Bond, each of said bonds to be in the amount stated in the Notice Inviting Bids, within ten (10) calendar days after notification of award and mailing of the proposed contract to the successful bidder. In case of refusal or failure to enter into said contract, each check or bond, as the case may be, shall be forfeited to the City. If the bidder elects to furnish a Bid Bond as his proposal guarantee, he shall use the Bid Bond form herein, or one conforming substantially to it in form. E. Before submitting a bid, each Bidder shall carefully examine each site of the proposed work and read the Bid Document, which includes, but not limited to, Notice Inviting Bids, Plans, Specifications, Scope of Work/Services, Special Provisions, Addenda, and Contract to fully inform himself as to all existing conditions and limitations. F. Bids shall be delivered to the City Clerk, City of Azusa, on or before the day and hour set for the opening of bids in the Notice Inviting Bid advertisement, enclosed in a sealed envelope bearing the title of the work and name of the bidder. It is the responsibility of the bidder to see that his bid is delivered in proper manner and time. If any bid is received after the scheduled closing time, it shall be returned to the bidder unopened. G. Bids will be publicly opened and read at the time and place stipulated in the Notice Inviting Bids. WITHDRAWAL OF BIDS Any bidder may withdraw his bid by written request, signed by the bidder or his properly authorized representative. Such written request must be delivered to the place stipulated in the Notice Inviting Bids for receipt of bids prior to the scheduled closing time for receipt of bids. NIB -2 034 INTERPRETATION OF PLANS AND DOCUMENTS If any person who contemplates submitting a bid for the proposed contract is in doubt as to the true meaning of any part of the specifications or other parts of the proposed contract documents, or finds discrepancies in or omissions from the specifications, he may submit to the Administrative Services Division of Azusa Light &Water a written request for an interpretation or correction thereof. The person submitting the request shall be responsible for its prompt delivery. Any interpretation or corrections of the proposed contract documents will be made only by addenda duly issued, and a copy of such addenda will be mailed or delivered to each person receiving a set of plans and specifications. The City of Azusa will not be responsible for any other explanation or interpretation. ESTIMATED QUANTITIES The quantities given in the plans and specifications are approximate only, given as a basis of bid comparison, and the City does not expressly or by implication guarantee that the actual amount of the proposed work will correspond therewith. ADDENDA Any addenda issued before or during the time of bidding shall become a part of the contract documents and shall be covered in the bid and made a part of the contract. DISQUALIFICATION OF BIDDERS The City Council may reject any and all proposals or bids should it deem this is for the public good, and also the bid of any person who has been delinquent or unfaithful in any former contract with the City, and may reject all proposals or bids other than the lowest proposal or bid of any responsible bidder, and may award the contract for said work or improvement to the lowest responsible bidder at the prices named in his bid. IRREGULAR BIDS Bids may be rejected if they show any alterations of form, additions not called for, conditional bids, incomplete bids, erasures or irregularities of any kind. MATERIAL QUALITY A. GENERAL. Unless otherwise specifically provided in the specifications all workmanship, equipment, materials and articles incorporated in the work covered by this contract are to be new and of the best available grade of their respective kinds.Whenever in the specifications any material, article, device, product, fixture, form,type of construction or process is indicated or specified by patent or proprietary name, by name of the manufacturer, or by catalog number, such specifications shall be deemed to be used for the purpose of establishing a standard of quality and facilitating the description of the materials or process desired, and shall be deemed to be followed by the words "or equal", and the contractor in such cases may, on written permission of the City, use any item, type or process which shall be substantially equal in every respect to that so indicated or specified. The City shall be the sole judge as to the equality of the substituted article. B. SUBSTITUTIONS. If materials other than as specified are used in bidding the work described in the General Conditions and/or shown on the plans, the bidder shall furnish a list of such substitutions giving name and manufacturer of each item to be substituted in order that such items may be checked before the contract is awarded. OPENING OF BIDS Bids will be opened and publicly read aloud in the City Clerk's Office, City Hall, 213 East Foothill Boulevard, Azusa, California. In cases where only one bid is received,,such bid maybe properly opened and read aloud in the usual manner, and accepted at the option of the Azusa Utility Board. Bidders or their representatives and other interested persons may be present at the opening and reading of bids. If NIB- 3 035 any bid or security furnished therewith is irregular or informal, the facts will be noted and publicly announced at the time of reading thereof. AWARD OR REJECTION OF BID The award of the contract, if it is awarded, will be to the lowest responsible bidder whose proposal complies with all the requirements described. The award, if made, will be made within thirty(30) days after the opening of the bids. All bids will be compared on the basis of the estimate of quantities of work to be done. BIDDERS SUBMITING MORE THAN ONE BID No person, firm or corporation shall submit more than one bid for the same work. A person, firm or corporation who has submitted a sub-proposal to a bidder or who has quoted prices on materials and/or labor to a bidder is not thereby disqualified from submitting a sub-proposal or_quoting prices to other bidders. EXECUTION OF CONTRACT The contract and bonds shall be executed and filed by the successful bidder with the City Clerk of the City of Azusa no later than ten (10) days after notification of award and mailing of the proposed contract to the successful bidder. RETURN OF BIDDER'S GUARANTEE Within ten (10) days after the award of the contract, the City of Azusa will return the proposal guarantees accompanying each of the proposals which are not to be considered in making the award. All other . proposal guarantees will be held until the contract has been finally executed, after which they will be returned to the respective bidders whose proposal they accompanied. NIB-4 036 BID FORM AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE THIS BID IS SUBMITTED TO: CITY OF AZUSA Office of the City Clerk 213 E. Foothill Blvd. P.O. Box 1395 Azusa, California 91702-1395 The undersigned Bidder accepts all of the terms and conditions of the Notice Inviting Bids, including without limitations those dealing with the disposition of bid security and that this Bid will remain subject to acceptance for 30 days after the day of Bid opening. If this Bid is accepted, Bidder agrees to enter into a contract with the City within ten (10) days after the date of City's Notice of Award to perform and furnish all work as specified in the contract. A check payable to the City of Azusa and certified by a responsible bank, Cashier's check, or Bidder's Bond for an amount not less than ten percent (10%) of the aggregate of the Proposal is attached hereto and is given as a guarantee that in the event of the Bidder's failure to do so within the time provided, said check or bond, as the case may be, shall be forfeited to the City of Azusa, or Surety's liability to the City of Azusa established. In submitting this Bid, Bidder represents, as more fully set in the contract, that: This Bid is genuine and not made in the interest of or on behalf of any undisclosed person,firm or corporation and is not submitted in conformity with any agreement or rules of any group, association, organization or corporation; Bidder has not directly or indirectly induced or solicited any other Bidder to submit a false or sham bid; Bidder has not solicited or induced any person, firm or corporation to refrain from bidding; and Bidder has not sought by collusion to secure for himself an advantage over any other bidder. Bidder has checked careful) all words and figures inserted in the Bid Schedule and understands that the City of Azusa will not be responsible for any errors or omissions on the part of the undersigned in making up his bid. In case of discrepancy between words and figures, the words shall prevail. Bidder has examined copies of all the bidding documents and of the following addenda (if any) all which is hereby acknowledged and that the bid includes the cost of all additional work specified thereon: Date Number The undersigned Bidder is licensed in accordance with the laws of the State of California. If Corporation, affix Corporate Seal Bidder's Name (Company Name) Authorized Signature Date Name: Title: NIB -5 037 INFORMATION REQUIRED OF BIDDER The bidder is required to supply the following information. Additional sheets may be attached if necessary. If requested by the City, the bidder shall furnish a notarized financial statement, references, and other information, sufficiently comprehensive to permit an appraisal of his current financial condition. 1. Company Name: 2. Address: 3. Telephone: 4. Type of Firm: Individual ( ) Partnership ( ) Corporation ( ) Others: 5. Corporation organized under the laws of the State of since year 7. Names and Titles of chief officers of the firm: NAME TITLE 8. Number of years of experience in projects of this type: years. 9. Reference of three projects of this type: 1. Company: Contact Person: Address: Telephone: 2. Company: Contact Person: Address: Telephone: 3. Company: Contact Person: Address: Telephone: NIB-6 038 CONTRACTOR'S LICENSE DECLARATION (Business and Professions Code Section 7028.15) The undersigned declares that he or she is (Title) of (Bidder), (Company Name) 1. Contractor's License Number: State 2. Contractor's License Classification: 3. Expiration Date of Contractor's License: 20 4. Bidder acknowledges that Section 7028.15(e) of the Business and Professions Code provides as follows: "A licensed contractor shall not submit a bid to a public agency unless his or her contractor's license appears clearly on the bid, the license expiration date is stated and the bid contains a statement that the representations therein are made under penalty of perjury. Any bid not containing this information, or a bid containing information which is subsequently proven false, shall be considered non-responsive and shall be rejected by the public agency." The undersigned declares under penalty of perjury that the forgoing is true and correct. Executed on 20 , at (City and State where signed) Name of Company Typed Name Signature Title NIB - 7 039 BID BOND FORM KNOW ALL MEN BY THESE PRESENTS, That as Contractor, and as Surety, are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of: dollars, lawful money of the United States, said sum being not less than 10 percent of the total amount of the bid for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns,jointly and severally,firmly by these presents. WHEREAS, said Contractor has submitted a bid to said City to perform all work required under the City's Specifications entitled: "AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE" NOW THEREFORE, if said Contractor is awarded a contract by said City, and, within the time and in the manner required under the heading °Instructions to Bidder's" bound with said Specifications, enters into a written contract on the form of Agreement bound with said Specifications and furnished the required insurance and required bonds, one to guarantee faithful performance and the other to guarantee payment of labor and materials, then this obligation shall be null and void, otherwise it shall remain in full force and effect. In the event suit is brought upon this Bond by said City and judgment is recovered, (or settlement made which is favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a reasonable attorney's fee to be fixed by the court. SIGNED AND SEALED, this day of Contractor Surety By By Its Its By By Its Its Surety's Phone Address ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY. NIB -8 040 SCOPE OF SERVICES AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE I. LANDSCAPE MAINTENANCE Contractor shall be responsible for maintaining the landscape locations listed in the Service Schedule as outlined below: MOWING Mowing shall be accomplished on a weekly basis with a power-driven rotary or reel mower with a grass catcher attached to remove grass clippings. Mowing shall be accomplished in alternating pattern of directions every other mowing. City recommends north and south, then diagonal (45 degrees) to east/west, then east to west and diagonal (45 degrees) to north/south. . Turf shall be mowed to the minimum height of two (2) inches or higher during Fall and Winter months. No lower that one (1) inch during late Spring and Summer months. Turf shall be mowed at such intervals of time so that not more that 1/3 of the grass blade is removed at time of cutting, but at intervals of no less than once a week during the active growing season of blue grass, unless otherwise specified. All mowing equipment shall be maintained mechanically and safety features shall be in operation condition. Azusa Light and Water may require Contractor to cease mowing operation should Azusa Light and Water feel that mowing equipment is unsafe or excess smoke is environmentally harmful. EDGING Edging shall be performed concurrently with every mowing. The sprinkler head wells shall be kept free of grass to a minimum of six (6) inches in all directions from the sprinkler head. This shall be performed by mechanical methods only. Trees growing in turf areas shall have tree wells not to exceed twelve (12) inches in diameter from the main stem or trunk of the tree. Tree wells shall be edged concurrently with each mowing and shall be performed by mechanical methods only. HARDSCAPES All hardscaping areas, i.e., deco-concrete, asphalt, walkways and cobblestone area shall be swept or blown clean once per week in conjunction with mowing and edging. Debris from blowing shall be gathered and disposed of in a proper manner. Policing and disposal of litter, debris, trash and/or dumping shall consist of objects) not associated with irrigation system or attached vegetation growing from the earth. Contractor shall include cleaning of discarded or illegal dumping within City owned trash enclosures. PLANTERS AND BEDDING AREAS All planters and flowerbeds are to be weeded on a weekly basis. All planters and flowerbeds are to have soil cultivated no less than one (1) inch in depth on a weekly basis. NIB- 9 041 All shrubs (hedges) shall be consistently trimmed to maintain existing shape. Vines or traveling plants shall be trimmed to a confined growth and from expanding into unwanted areas. For example, fig ivy from growing onto wood fascia boards or windows. All trimmings shall be raked and disposed of in a proper manner. PLANTING Contractor shall be responsible for planting all plants, shrubs, flowers and trees within contract areas. Contractor shall be reimbursed for material and labor. Azusa Light&Water shall notify Contractor as to planting species or approve recommendation by Contractor. Contractor shall be responsible for plant replacement within six(6) months of planting. Azusa Light &Water may direct Contractor to remove and replant annual flowers within designated areas. Planting may be requested 2-3 times per year. Contractor shall be responsible for making sure that all annual planting is done correctly so that plants take hold. Any replacement of plants that are lost due to improper planting or not taken care of properly shall be replaced at Contractor's expense. TREES Contractor shall have the knowledge, expertise and responsibility to trim, remove and plant trees within contract locations. Contractor shall trim all trees within contract location that are within 15' in height and 6" in diameter at base, once per year without compensation. All trees over the aforementioned specifications shall be trimmed upon Azusa Light&Water request. Contractor shall submit within bid summary an hourly rate for a two (2) man crew with boom/aerial truck and chipper. Contractor may dispose of green waste at a City disposal site. Contractor shall indicate tree sub-contractor by name, address, phone number, license and references. All roadway delineation shall be furnished by Contractor. Roadway delineation shall comply with the Caltrans standards. Contractor shall be responsible for maintaining staked trees without additional compensation. FERTILIZATION Contractor shall be responsible for fertilizing all turf within contract location every first week of February, June, and October by granular or chemical spray. Contractor shall possess a valid Applicator's Certificate and have on file with the Administrative Services Division of Azusa Light&Water. Contractor shall indicate chemical spraying sub-contractor by name, address and phone number. NIB - 10 nq .? Fertilization shall be: a. February—100% slow release 39-0-0 formula b. June— 100% slow release, 39-0-0 formula c. October—triple, 15-15-15 formula Fertilization shall consist of pest and broadleaf control, as deemed necessary by Azusa Light&Water. Ground cover areas shall be fertilized the first week of April and the first week of September with a palletized 12-12-6 formula containing no less than 18% sulfur. Shrub fertilization shall be applied the first weeks of April and September with a palletized 15-15-15 formula fertilizer. OVERSEEDING Contractor shall overseed when needed in such a manner as to insure uniform growth within minimum bare areas. The seeding shall be 100%tall fescue or approved equal. Tall fescue will be applied 2-4 Ib. per 1,000 square feet. Seeding shall be covered with organic mulch appropriate for seed cover. Overseeding will be planned either in the early Fall or early Spring. Fertilization and overseeding will be applied concurrently. PESTICIDE APPLICATION Contractor or member of his Staff, must possess a current California Pest Control License or an Applicator Certificate. A copy of which shall be on file with the Administrative Services Division of Azusa Light&Water. Contractor shall be responsible for detection, prevention, elimination and control of harmful insects, disease and rodents in the turf, shrubs, trees, ground covers and turf, shrub and ground cover areas. Pests shall include but are not limited to, insects, diseases, vertebrates, snails and slugs. Flowerbeds and shrub areas shall be treated by solid materials to prevent pest, i.e. snails, slugs, etc. at any time during the contract period as deemed necessary by Azusa Light &Water without compensation. Turf areas shall be treated with an granular or liquid type herbicide to control weeds, i.e., clover, plantain, etc., and shall be applied when fertilization is being applied as part of the program without further compensation. Any added herbicide application as deemed necessary by Azusa Light&Water over and above the three (3) applications shall be compensated to the Contractor by Azusa Light&Water. ENVIRONMENTAL AND SAFETY Equipment shall be maintained to prevent excess smoke into the air. Gas power equipment shall comply with the Air Resource Board approved amendment on July 28, 1994, regulated in Title 13, California Code of Regulations, Section 2400 to 2407, Exhibit B. Contractor shall adhere to all state safety requirements in the performance of all work under this contract. If. IRRIGATION MAINTENANCE Contractor shall be responsible for maintaining all automatic and non-automatic sprinkler system as outlined below: WATER MANAGEMENT All landscaped areas shall be irrigated as required to maintain optimum growth and appearance. NIB- 11 ' 043 Contractor shall conform with the City of Azusa's Water Drought Ordinance, Division 6. conservation Plan, Section 78-501 through 78-506 of the Azusa Municipal Code, WHICH IS INCORPORATED HEREIN BY REFERANCE. Azusa Light and Water reserves the right to instruct Contractor to turn off any or all controllers upon notification. The automatic irrigation system controllers shall be set to water during the hours of 9:00 p.m. and 7:00 a.m. The automatic irrigation system shall be time set to prevent water run-off on road surfaces and sidewalks. Interval watering schedules may be required. Contractor shall make adjustments to sprinkler heads as required to keep over spray from sprinklers away from walls, walks and streets. Contractor shall inspect and examine the irrigation system bi-weekly which consist of manually activating a quarter of the contract locations every other week. IRRIGATION REPAIRS Contractor shall be responsible for cleaning, repairs, adjustments, and replacement of all sprinkler system components required to insure operation of each sprinkler system according to original design and installation intent. Contractor shall be responsible for replacement of plastic pipe (Schedule 40, Type I, Grade 2), plastic pipe fittings (Schedule 40) except nipples which shall be Schedule 80. Azusa Light and Water's irrigation systems varies by brand names and manufacturers. Replacement of sprinkler shall be replaced with same brand removed, unless approval is given to replace with a higher quality replacement. Expert knowledge on automatic systems by both 120V and battery, drip system, backflow certification and trouble shooting by Contractor will have bearing on the most responsible bidder. Certificates, training and degrees may be requested by Azusa Light&Water from Contractor. Contractor shall submit the name and position along with the pager number or cellular phone number of employee who the Administrative Services Division of Azusa Light &Water shall contact for inquires and emergencies relating to irrigation repairs. Contractor shall provide four (4) hour response time to irrigation repairs Monday through Friday from the hours of 6:30 a.m. to 5:00 p.m. Contractor shall have all holes covered in a safe manner at all times while unattended. Azusa Light and Water reserves the right to solicit irrigation repair and authorize repairs. Contractor shall furnish all barricades and or delineation surrounding or related to repair areas. Contractor shall be required to place grass seed over backfilled area of repair site. Irrigation repairs or extras beyond the specifications are subject to alternate quotations. III. MISCELLANEOUS COMPENSATfON Billing - Contractor shall submit monthly an invoice for all work completed per approved Scope of Services and extra work pre-approved by the Administrative Services Division of Azusa Light &Water for NIB- 12 044 the previous month. Contractor agrees to credit any charges for incomplete work. All requests for payment over and above routine maintenance as outlines in the Scope of Services must be pre-approved by Azusa Light & Water and accompanied by a cost breakdown of labor, materials and mark-up with invoice copies as back-up. Reimbursable expenses - Contractor shall submit with monthly billing a list of pre-approved requests of replacement items, date of repairs, area of work performed, itemized part replacement and cost of parts. Azusa Light &Water will authorize payment for materials at a rate not to exceed 15% of Contractor price for markup, and 10% surcharge for applicable labor. Contractor shall submit photocopies of all material invoices for verification with billing. Contractor shall replace, at own expense, of damaged equipment and material caused by Contractor's negligence. EXTRA WORK Azusa Light&Water may request that Contractor perform Extra Work. Contractor shall not perform, nor be compensated for Extra Work without written authorization from the Administrative Services Division of Azusa Light &Water. Rates for certain extra work are set forth in the Extra Work Price Sheet. CERTAIN WORK ADVANCE NOTICE Contractor shall submit to the Administrative Services Division of Azusa Light &Wate one week in advance of performing maintenance operations to include, but not limited to: 1. Fertilization of turf, shrub or ground cover areas 2. Application of any type of chemical pesticide to turf, shrubs,trees or ground cover or their corresponding areas. 3. Tree trimming SUPERVISION AND INSPECTIONS Contractor shall provide all necessary supplies and equipment as may be required to perform the landscape and irrigation service. All supplies and equipment shall be of the highest quality possible and environmentally safe to protect the safety, health, and well being of all individual. A list of supplies and equipment shall be provided to Azusa Light and Water. Contractor shall be responsible for furnishing employees with uniform shirts to include name of employees and company name. Safety vests and devices should be used where applicable. Contractor shall be responsible to screen its personnel for drug and alcohol, background check, ability to perform the service, and morale character. Contractor shall develop and maintain a service quality control system and submit an inspection report to Azusa Light and Water no less than once a week. Contractor shall also accompany Azusa Light &Water authorized personnel for inspections on a quarterly basis. Any deficiency found thereof shall be recorded on the Azusa Light and Water Inspection Report attached herewith by the Azusa Light&Water's authorized inspector. Any deficiency reported by the Contractor or by Azusa Light and Water shall be corrected promptly by Contractor's personnel and Contractor shall provide appropriate credit to Azusa Light and Water. PREVAILING WAGES Contractor shall be responsible for submittal of prevailing wage documentation upon request by Azusa Utility Board. CONTRACT ADDITIONS NIB - 13 045 Azusa Utility Board reserves the right to solicit and award proposals for additional contract areas. New additional areas are not a guarantee to the Contractor. NIB- 14 046 SERVICE SCHEDULE AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE MARCH NOVEMBER to to AMOUNT NO. LOCATION OCTOBER FEBRUARY PER MONTH 1 Light and Water Administration Weekly Weekly $ Building 729 N. Azusa Ave., Azusa (figures) Weeding, maintenance of shrubs, plants and automatic sprinklers, litter removal from parking lots, walkways Dollars and landscaped areas. words 2 Electric Division Yard Weekly Weekly $ 1020 W. 10th St., Azusa fi ures Trim trees, weeding, maintenance of shrubs, plants and automatic sprinklers, litter removal from parking Dollars lots, walkways and landscaped areas. words 3 Kirkwall Electric Substation Weekly Weekly $ 1160 W. Gladstone St., Azusa fi ures Weeding, maintenance of shrubs, plants and automatic sprinklers, litter removal from parking lots, walkways Dollars and landscaped areas. (CAUTION: Hazardous Electrical (words) Voltage Area.) 4 Gladstone Construction Yard & Weekly Weekly Company House $ 710 W. Gladstone St., Azusa figures) Gladstone Construction Yard: Trim trees, maintenance of Shrubs, planters, manual sprinklers and Dollars landscaped area. Company House: (words) Trim trees, mow lawn, weeding, maintenance of shrubs and manual sprinklers. 5 Well No.7 Weekly Weekly 654 W. 11`" St. at McKeever,Azusa $ fi ures Mow lawn, weeding &trim trees , maintain automatic sprinklers. Dollars (words) NIB- 15 047 6 Well No.8 Weekly Weekly SE corner of 11th St. & Orange $ Avenue, Azusa (figures) Mow lawn, weeding, &trim trees, maintain automatic sprinklers. Dollars words 7 1 Vn & Vernon Booster Station Weekly Weekly 800 W. 11th St., Azusa $ (figures) Mow lawn,trim hedges &trees, maintain-automatic sprinklers. Dollars words 8 Wilson Reservoir & Company House Weekly Weekly 1700 S. Barranca Ave., Glendora $ (figures) Wilson Reservoir: Trim trees, rake &clean.up site & litter removal. Company House: Dollars Trim trees, mow lawn, weeding, (words) maintenance of shrubs and manual sprinklers. 9 Dalton Reservoir Weekly Bi-Monthly 255 E. Sierra Madre, Azusa $ (figures) Maintenance of shrubs, trim trees, litter removal maintain ground cover, maintain automatic sprinklers. Dollars words 10 Sierra Madre Reservoir Weekly Bi-Monthly 200 E. Sierra Madre, Azusa $ (figures) Maintenance of shrubs outside fence line & removal of litter, trim trees, maintain manual sprinklers. Dollars words 11 Heth Reservoir Bi-Monthly Monthly Canyon Heights private road, n/o 111h $ Street, Azusa (figures) Rake and clean up any debris (Reservoir will tie sold for`riursery development,) Dollars words 12 Hilltop Reservoir Bi-Monthly Monthly End of Hilltop Drive, Azusa $ (figures) Trim around fence line; weed control around site. Dollars words NIB - 16 , 048 13 Nursery Reservoir Bi-Monthly Monthly 655 E. Sierra Madre, Azusa $ (figures) Trim hedges around fence line; trim trees (Reservoir will be relocated.fol nursery, Dollars developrrent.)', words 14 Aspan Reservoir & Monitoring Well Bi-Monthly Bi-Monthly $ 220 N. Aspan Avenue, Azusa (figures) Trim along fence line, weed control & litter removal. Dollars words 15 AVWC#1 Bi-Monthly Bi-Monthly 16106 E. San Bernardino Road, $ (figures) Covina Trim ivy& maintenance to shrubs & litter removal. Dollars words 16 Grandview Monitoring Well Bi-Monthly Bi-Monthly $ 209 Grandview Drive, Azusa fi ures Weed control around site; litter removal. (Sde wilhbecome a,Cdy of Azusa pA.k Dollars after well destroyed.), words 17 Griffith Reservoir Bi-Monthly Bi-Monthly 18612 Gallarno Drive, Covina $ figures Trim along fence line, trim trees, rake and clean up site & litter removal. Dollars words 18 Heck Reservoir Bi-Monthly Bi-Monthly 1962 N. Azusa& San Gabriel Canyon $ Road, Azusa (figures) Maintain ground cover, trim trees, maintain manual sprinklers & litter removal. Dollars words 19 Paramount Pipe Yard & Monitoring ' Bi-Monthly Bi-Monthly Well $ 275 W. Paramount, Azusa (figures) Trim along fence line, trim trees, weeding & litter removal. Dollars (words) NIB - 17 �49 20 Well No. 5 Bi-Monthly Bi-Monthly 1327 N. San Gabriel Ave, Azusa $ (at alley 300ft. west of Annandale & (figures) 600 ft. north 0f 12th. St. Litter removal &weeding. Dollars words 21 Well No. 6 Bi-Monthly Bi-Monthly 527 W. 12th St. Azusa $ (west end of 12th St. at north side of (figures) ark Rake and clean-up any debris & weeding. Dollars words NIB- 18 050 EXTRA WORK PRICE SHEET AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE I. TURF MAINTENANCE UNIT COST 1. Mowing $ acre 2. Edge &Trim $ per 1,000 lin. Ft. 3. Fertilization (placement only) $ acre 4. Aerification (without removal of cores) $ acre 5. Thatching (including removal) $ acre 6. Weed Control $ acre 7. Pest Control $ hour 8. Irrigation: a. Maintenance $ hour b. Repairs $ hour ll. LANDSCAPE MAINTENANCE (SHRUB & GROUNDCOVERI 1. Edge&Trim $ 1,000 lin ft. 2. Weed & Clean-up $ 10, 000 sq ft. 3. Fertilization: a. Maintenance $ acre b. Placement only $ acre 4. Pest Control $ hour 5. Pruning/Shrubs $_1 0,000 sq ft. 6. Pruning/Tree $ over 18' each Less than 40' ea 7. Vertical Mulch Trees $ each 8. Vegetation Removal $ acre 9. Irrigation: a. Maintenance $ hour b. Repairs $ hour III. SPORTS TURF MAINTENANCE 1. Mowing $ acre 2. Trim and Edge $ linear foot NIB- 19 3. Fertilization (placement only) $ acre 4. Aerification (without core removal) $ acre 5. Thatching (including removal) $ acre 6. Weed Control $ acre 7. Pest Control $ acre IV. PLANT MATERIAL (INSTALLED, ANY LANDSCAPE OR SPORTS TURF AREA) 1. Annual Color(4"container) $ each 2. Ground Cover $ flat 3. One (1) Gallon (less than 50 units) $ each 4. One (1) Gallon (more than 50 units) $ each 5. Five (5) Gallon (less than 50 units) $ each 6. Five (5) Gallon (more than 50 units) $ each 7. Fifteen (15) Gallon (less than 10 units) $ each 8. Fifteen (15) Gallon (more than 10 units) $ each 9. 24° Box Tree $ each 10. Seeded Turf $ sq. ft 11. Sodded Turf $ sq. ft. 12. Stolonized Turf $ sq. ft. 13. Hydroseed $ sq. ft. NIB -20 05 2t'y I INSPECTION REPORT AZUSA LIGHT AND WATER LANDSCAPE AND IRRIGATION MAINTENANCE Performance Deficiency Notification Date: Name of Contractor: Inspection Location: On , I inspected this area and the following deficiencies were found: (C=Corrected; Un=Un-Corrected) Turf Ground Cover Shrubs _Bare Areas/Overseed _Missing/Replant _Missing/Replant _Dead/Stressed Dead/Stressed _Dead/Stressed _Mowing/Edging Trimmed/Walks/Fences Thinned/Pruned _Fertilize/Pre-Emerge _Trimmed/Heads/Boxes _Fertilize/Pre-Emerge _Grassy Weeds _Annual Grass Weeds _ Pests _Broadleaf Weeds _Broadleaf Weeds _Aeration/Verticutting _Fertilize/Pre-Emerge Trees _Clippings/Debris _Pests Missing/Replant Erosion Depressions _Rodents _ Dead/Stressed Rodents _Clippings/Debris _Arborguard Weeds _Cultivation _Thin/Prune/Stickers Hardscape/StructureNJalls Erosion/Depressions _Fertilize _Clean Walks/Gutter _Buffer Zone Maint. Pests —Clean Drains/Vee Ditch _Stakes/Arborguards _Stakes/Arborguards _Graffiti Removal _ Hazardous Conditions Reports Tot Lots Weeds _Pesticide Use/NO[ Sand Raked/Cleaned Irrigation Testing Sand Rototilled Controller Programming Comments: Irrigation: _ Broken Heads _Arc Adjust Turf Overwater _Missing Heads _Clogged Nozzles _Turf Underwater Leaning Heads Leaky Seals _G.C. Overwater _Stake Heads Valve Conditions/Leaks _G.C. Underwater Box/Lids Conditions Comments: Inspection Evaluation: Upon inspection, the above listed items noted as Un=uncorrected were found to be deficient, and as reported to the Contractor on the notification dated, Azusa Light and Water has determined the value as follows: Substandard Performance: $ Non-Performance: $ Total Value: $ By Inspector: Print Name: NIB -21 ��y CITY OF AZUSA AGREEMENT FOR MAINTENANCE SERVICES 1. PARTIES AND DATE. This Agreement is made and entered into this day of , 20_ by and between the City of Azusa, a municipal corporation of the State of California, located at 213 East Foothill Boulevard, Azusa, California 91702-1295, County of Los Angeles, State of California, (hereinafter referred to as "City') and a with its principal place of business at (hereinafter referred to as "Contractor"). City and Contractor are sometimes individually referred to as "Party" and collectively as"Parties"in this Agreement. 2. RECITALS. 2.1 Contractor. Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing landscape and irrigation maintenance services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City. 2.2 Project. City desires to engage Contractor to render such services for the Azusa Light and Water Facilities Landscape and Irrigation Maintenance ("Project") as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional landscape and irrigation maintenance services necessary for the Project ("Services"). The Services are more particularly described in the Scope of Services 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. 3.1.2 Term. The term of this Agreement shall be from to A- 1 054 unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Contractor. 3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Contractor 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 Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor 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. Contractor 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. Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in the Scope of Services in Exhibit "A" attached hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall respond to Contractor's submittals in a timely manner. Upon request of City, Contractor 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 Contractor shall be subject to the approval of City. 3.2.4 City's Representative. The City hereby designates 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. Contractor shall not accept direction or orders from any person other than the City's Representative or his or her designee. 3.2.5 Contractor's Representative. Contractor hereby designates , or his or her designee, to act as its representative for the performance of this Agreement ("Contractor's Representative"). Contractor's Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor's Representative shall supervise and direct the Services, using his best skill and attention, and shall be A- 2 055 responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.6 Coordination of Services. Contractor 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. 3.2.7 Standard of Care; Performance of Employees. Contractor 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. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor 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 Cit Business License and that such licenses and 9 Y q P � 9 Y approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor 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 Contractor's failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors 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 Contractor and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.8 Laws and Regulations. Contractor 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. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.2.9 Insurance. 3.2.9.1 Time for Compliance. Contractor shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required A -3 056 under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. 3.2.9.2 Minimum Requirements. Contractor 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 Contractor, its agents, representatives, employees or subcontractors. Contractor 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. Contractor shall maintain limits no less than: (1) General Liability. $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability. $1,000,000 per accident for bodily injury and property damage; and (3) Workers'Compensation and Employer's Liability: Workers' Compensation limits as required by the Labor Code of the State of California. Employer's Liability limits of$1,000,000 per accident for bodily injury or disease. 3.2.9.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor 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 volunteers shall be covered as additional insured with respect to the Work or operations performed by or on behalf of the Contractor, 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 Contractor'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 Contractor's insurance and shall not be called upon to contribute with it in any way. q A-4 057 (8) 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 Contractor or for which the Contractor 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 Contractor'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 Contractor'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 Contractor. (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. 3.2.9.4 Separation of Insureds No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers. 3.2.9.5 Deductibles and Self-Insurance Retentions. Any deductibles or self- insured retentions must be declared to and approved by the City. Contractor 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 Contractor shall procure a bond guaranteeing payment of losses and related investigation costs,. claims and administrative and defense expenses. 3.2.9.6 Acceptability of Insurers. Insurance is to be placed with 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. 3.2.9.7 Verification of Coverage. Contractor shall furnish City with original A-5 certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 3.2.10 Safetv. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 3.2.11 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1770 et sec. ('Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works contracts." If this is a"public works contract" pursuant to the California Labor Code and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Copies of the prevailing rate of per diem wages for each craft, classification or type of worker needed to execute this Agreement shall be made available to interested parties upon request, and shall be posted at the Project site. Contractor agrees to defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.2.12 Bonds. 3.2.12.1 Faithful Performance Bond. Contractor shall execute and provide to City concurrently with this Agreement a Faithful Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided in Exhibit "C' attached hereto. No payment will be made to Contractor until it has been received and approved by the City. 3.2.12.2 Labor and Material Bond. Contractor shall execute and provide to City concurrently with this Agreement a Labor and Material Bond in the amount of the total, not-to- exceed compensation indicated in this Agreement, and in a form provided in Exhibit `D" attached hereto. A- 6 059 No payment will be made to Contractor until it has been received and approved by the City. 3.2.12.3 Bond Provisions. Should, in City's sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause. 3.2.12.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best's rating no less than A:VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City. 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in the Scope of Services in Exhibit "A" attached hereto and incorporated herein by reference. The total compensation shall not exceed dollars ($ ) per month without written approval of City's Representative. Extra Work may be authorized, as described below,and if authorized, will be compensated at the rates and manner set forth in this Agreement. 3.3.2 Payment of Compensation. Contractor shall submit to City a monthly itemized invoice which indicates work completed and hours of Services rendered by Contractor. The invoice shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all approved charges thereon. 3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City. A-7 060 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Contractor 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. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City's Representative. Rates for certain Extra Work are set forth in the Extra Work Price Sheet in Exhibit"B". 3.4 Accounting Records. 3.4.1 Maintenance and Inspection. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor 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. Contractor 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 Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor 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 Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor 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 Agreement shall be given to the respective parties at the following address, or at such other address as the respective A- 8 061 parties may provide in writing for this purpose: CONTRACTOR: CITY: Azusa Light&Water P.O. Box 9500 Azusa, CA 91702-1295 Attn: Steven Yang Administrative Services 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 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. 3.5.4 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 3.5.5 Indemnification. Contractor 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 Contractor, 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. Contractor shall defend, at Contractor'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. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, A- 9 062 employees, agents or volunteers, in any such suit, action or other legal proceeding. Contractor 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. Contractor'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. 3.5.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. 3.5.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Los Angeles County. 3.5.8 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.5.9 City's Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project. 3.5.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.5.11 Assignment or Transfer. Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.5.12 Constructions References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.5.13 Amendment: Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. A- 10 063 3.5.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.5.15 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.5.16 Invalidity: Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5.17 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, 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. 3.5.18 Equal Opportunity Employment. Contractor 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. Contractor 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. 3.5.19 Labor Certification. By its signature hereunder, Contractor 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. 3.5.20 Authority to Enter Agreement. Contractor 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 A- 11 064 Agreement and bind each respective Party. 3.5.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6 Subcontracting. 3.6.1 Prior Approval Required. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. CITY OF AZUSA By: BY: Name: Name: Title: Title: Attest., Attest: By: BY: Name: Vera Mendoza Name: Title: City Clerk Title: Approved as to Form: By: Best Best& Krieger LLP City Attorney A- 12 065 EXHIBIT "A" SCOPE OF SERVICES A 13 066 EXHIBIT"B" EXTRA WORK PRICE SHEET A - 14 067 EXHIBIT"C" FAITHFUL PERFORMANCE BOND A- 15 068 FAITHFUL PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS, That as Contractor, and as Surety, are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of: dollars, lawful money of the United States, said sum being not less than 100 percent of the total Contract amount, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, and administrators, successors, and assigns, jointly and severally, firmly by these presents. WHEREAS, said Contractor has been awarded and is about to enter into the annexed agreement with said City to perform all work required under the City's Specifications entitled: "AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE" NOW, THEREFORE, if said Contractor shall perform all the requirements of said agreement required to be performed on his part, at the times and in the manner specified herein and shall indemnify and save harmless the said City, its officers, employees and agents, as therein stipulated, then this obligation shall be null and void, otherwise it shall remain in full force and effect. PROVIDED, that any alterations in the work to be done or the materials to be furnished, which may be made pursuant to the terms of said Contract, shall not in any way release said Contractor or said Surety thereunder, nor shall any extensions of time granted under the provisions of said Contract release either said Contractor or said Surety, and notice of such alterations or extensions of the Contract is hereby waived by said Surety. In the event suit is brought upon this Bond by said City and judgment is recovered, (or settlement made which is favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a reasonable attorney's fee to be fixed by the court. SIGNED AND SEALED,this day of Contractor Sure By BY Its Its By BY Its Its Surety's Phone Address ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY. A- 16 069 EXHIBIT "D" LABOR AND MATERIAL BOND A- 17 070 LABOR AND MATERIAL BOND KNOW ALL MEN BY THESE PRESENTS, That as Contractor, and as Surety, are held and firmly bound unto the City of Azusa, hereinafter called "City° in the sum of: dollars, lawful money of the United States, said sum being not less than 100 percent of the total Agreement/Contract amount, for the payment of which sum,well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. WHEREAS, said Contractor has been awarded and is about to enter into the annexed contract with said City to perform all work required under the City's Specifications entitled: "AZUSA LIGHT AND WATER FACILITIES LANDSCAPE AND IRRIGATION MAINTENANCE" THE CONDITION OF THE OBLIGATION IS SUCH THAT, if said Contractor or any of his Sub- contractors, fails to pay for any materials, equipment, or other supplies, or for rental of same used in connection with the performance of work contracted to be done or for work or labor thereon of any kind, or fails to pay any of the persons named in Section 3181, California Civil Code or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant or for any amounts required to be deducted, withheld and paid to the Employment Developmental Department or its successor(s) from the work of employees of the Contractor and his Sub-contractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay for the same in an amount not exceeding the sum specified above. Thisdbond shall inure to the benefit of any persons named in Section 3181 of said California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. This bond shall be subject to and include all of the consistent provisions of the Civil Code of the State of California relating to Payment Bonds for Public Works, including but not limited to Civil Code, Sections 3225-3226 and Section 3247-3252. PROVIDED, that any alterations in the work to be done or the materials to be furnished, which may be made pursuant to the terms of said Contract, shall not in any way release either said Contractor or said Surety thereunder, nor shall any extensions of time granted under the provisions of said Contract release either said Contractor or said Surety, and notice of such alterations or extensions of the Contract is hereby waived by said Surety. In the event suit is brought upon this bond by said City and judgment is recovered, (or settlement made which if favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a reasonable attorney's fee to be fixed by the court. SIGNED AND SEALED, this day of Contractor Surety By By Its Its By BY Its Its Surety's Phone Address ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY. A- 18 071 AZUSA i:mrr • uanrr CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES^� DATE: SEPTEMBER 27, 2004 CV1 q SUBJECT: APPROVAL OF JANITORIAL SERVICE SPECIFICATIONS FOR AZUSA LIGHT AND WATER FACILITIES AND AUTHORIZATION OF FORMAL BIDDING RECOMMENDATION It is recommended that the Utility Board/City Council approve of the specifications for a three-year contract for janitorial services for Azusa Light &Water Facilities and authorize advertising for formal bids. BACKGROUND The existing janitorial service contract for Azusa Light &Water facilities has expired and a new contract must be awarded. To begin the selection process, a comprehensive bid specification has been developed with input from various staff at affected facilities. Azusa Light &Water staff value the importance of providing a clean and safe work place, and in order to continue this practice, it is recommended that the City Council/Utility Board approve of the attached specification and authorize staff to advertise for competitive bids. A copy of this report and attached specification is available at the City Clerk's office for review by the public. FISCAL IMPACT Fiscal impact will depend on the bid results, which will be presented to the City Council/Utility Board at its regularly scheduled meeting in October 2004. Prepared by: Steven Yang, Administrative Technician Attachment: NIB-J a nitoria IServ-v8 Am 02 CITY OF AZUSA AZUSA LIGHT AND WATER SPECIFICATIONS AZUSA LIGHT AND WATER FACILITIES JANITORIAL SERVICE THREE-YEAR CONTRACT AZUSA UTILITY BOARD DIANE CHAGNON CHAIRPERSON DICK STANFORD DAVID O. HARDISON VICE CHAIRPERSON BOARD MEMBER CHRISTINA C. MADRID JOSEPH R. ROCHA BOARD MEMBER BOARD MEMBER JULIE GUTIERREZ CITY MANAGER JOSEPH F. HSU DIRECTOR OF UTILITIES SEPTEMBER 27,2004 073 TABLE OF CONTENTS NOTICEINVITING BIDS..................................................................................................................1 INSTRUCTIONS TO BIDDERS.......................................................................................................2 SECURINGBID DOCUMENT......................................................................................................2 PROPOSAL..................................................................................................................................2 WITHDRAWALOF BIDS..............................................................................................................2 INTERPRETATION OF PLANS AND DOCUMENTS ..................................................................3 ESTIMATEDQUANTITIES...........................................................................................................3 ADDENDA....................................................................................................................................3 DISQUALIFICATION OF BIDDERS.............................................................................................3 IRREGULARBIDS .......................................................................................................................3 MATERIALQUALITY...................................................................................................................3 OPENINGOF BIDS......................................................................................................................3 AWARDOR REJECTION OF BID ...............................................................................................4 BIDDERS SUBMITING MORE THAN ONE BID..........................................................................4 EXECUTIONOF CONTRACT......................................................................................................4 RETURNOF BIDDER'S GUARANTEE .......................................................................................4 BIDFORM........................................................................................................................................5 INFORMATION REQUIRED OF BIDDER .............................................................:.....................6 CONTRACTOR'S LICENSE DECLARATION.............................................................................7 BIDBOND FORM ........................................................................................................................8 SCOPEOF SERVICES................................................................................................................9 SERVICE SPECIFICATIONS................................................................................................9 COMPENSATION ...............................................................................................................10 EXTRAWORK....................................................................................................................10 CERTAIN WORK ADVANCE NOTICE...............................................................................10 SUPERVISION AND INSPECTIONS..................................................................................10 PREVAILING WAGES ........................................................................................................10 CONTRACTADDITIONS....................................................................................................10 SERVICESPECIFICATIONS.....................................................................................................11 SERVICESCHEDULE...............................................................................................................12 EXTRA WORK PRICE SHEET..................................................................................................13 INSPECTIONREPORT..............................................................................................................14 JANITORIAL SUPPLIES REQUISITION FORM.......................................................................15 AGREEMENT FOR MAINTENANCE SERVICES...........................................................................1 1. PARTIES AND DATE..............................................................................................................1 2. RECITALS............................................................................................................................1 2.1 Contractor.................................................................................................................1 2.2 Project........................................................................................................................1 3. TERMS.................................................................................................................................1 3.1 Scope of Services and Term...................................................................................1 3.1.1 General Scope of Services ................................................. ..............................:....1 3.1.2 Term.......................................................................................................................1 3.2 Responsibilities of Contractor................................................................................2 3.2.1 Control and Payment of Subordinates; Independent Contractor...........................2 3.2.2 Schedule of Services .............................................................................................2 3.2.3 Conformance to Applicable Requirements ............................................................2 3.2.4 City's Representative.............................................................................................2 3.2.5 Contractor's Representative...................................................................................2 3.2.6 Coordination of Services........................................................................................3 3.2.7 Standard of Care; Performance of Employees......................................................3 3.2.8 Laws and Regulations............................................................................................3 3.2.9 Insurance................................................................................................................3 TOB- 1 074 3.2.9.1 Time for Compliance..........................................................................................3 3.2.9.2 Minimum Requirements.....................................................................................4 3.2.9.3 Insurance Endorsements...................................................................................4 3.2.9.4 Separation of Insureds; No Special Limitations.................................................5 3.2.9.5 Deductibles and Self-Insurance Retentions.......................................................5 3.2.9.6 Acceptability of Insurers.....................................................................................5 3.2.9.7 Verification of Coverage........:............................................................................5 3.2.10 Safety......................................................................:..............................................6 3.2.11 Prevailing Wages...................................................................................................6 3.2.12 Bonds.....................................................................................................................6 3.2.12.1 Faithful Performance Bond............................................................................6 3.2.12.2 Labor and Material Bond...............................................................................6 3.2.12.3 Bond Provisions.............................................................................................7 3.2.12.4 Surety Qualifications......................................................................................7 3.3 Fees and Payments............................:.....................................................................7 3.3.1 Compensation........................................................................................................7 3.3.2 Payment of Compensation.....................................................................................7 3.3.3 Reimbursement for Expenses................................................................................7 3.3.4 Extra Work..............................................................................................................8 3.4 Accounting Records ................................................................................................8 3.4.1 Maintenance and Inspection..................................................................................8 3.5 General Provisions...................................................................................................8 3.5.1 Termination of Agreement......................................................................................8 3.5.1.1 Grounds for Termination....................................................................................8 3.5.1.2 Effect of Termination..........................................................................................8 3.5.1.3 Additional Services............................................................................................8 3.5.2 Delivery of Notices.......................................................................................:.........8 3.5.3 Cooperation; Further Acts......................................................................................9 3.5.4 Attorney's Fees ......................................................................................................9 3.5.5 Indemnification.......................................................................................................9 3.5.6 Entire Agreement .................................................................................................10 3.5.7 Governing Law.....................................................................................................10 3.5.8 Time of Essence...................................................................................................10 3.5.9 City's Right to Employ Other Contractors ............................................................10 3.5.10 Successors and Assigns......................................................................................10 3.5.11 Assignment or Transfer........................................................................................10 3.5.12 Construction; References; Captions....................................................................10 3.5.13 Amendment; Modification.....................................................................................10 3.5.14 Waiver..................................................................................................................11 3.5.15 No Third Party Beneficiaries.................................:..............................................11 3.5.16 Invalidity; Severability...........................................................................................11 3.5.17 Prohibited Interests ..............................................................................................11 3.5.18 Equal Opportunity Employment ...........................................................................11 3.5.19 Labor Certification................................................................................................11 3.5.20 Authority to Enter Agreement...............................................................................11 3.5.21 Counterparts.........................................................................................................12 3.6 Subcontracting .......................................................................................................12 3.6.1 Prior Approval Required.......................................................................................12 EXHIBITA..................................................................................................................................13 SCOPEOF SERVICES..........................................................................................................13 EXHIBITB..................................................................................................................................14 EXTRA WORK PRICE SHEET ..............................................................................................14 EXHIBITC..................................................................................................................................15 FAITHFUL PERFORMANCE BOND......................................................................................16 EXHIBITD..................................................................................................................................17 LABOR AND MATERIAL BOND...........................................................................................18 TOB -2 075 NOTICE INVITING BIDS PUBLIC NOTICE IS HEREBY GIVEN that the City of Azusa, County of Los Angeles, State of California, will receive, at the office of the City Clerk, 213 E. Foothill Blvd., Azusa, California 91702, up to the hour of 10:00 a.m. on Monday. October 18. 2004, sealed bid for the following: AZUSA LIGHT AND WATER FACILITIES JANITORIAL SERVICE Bids will be publicly opened and declared in the Office of the City Clerk starting 10:00 a.m. on Monday, October 18, 2004. Action will be taken on these bids at the regular meeting of the Azusa Utility Board on Monday, October 25, 2004. In order to ensure that each Contractor is familiar with the facilities covered under this contract, a formal mandatory walk-through will be held on Wednesday, October 6, 2004, starting at 9:00 a.m., in the upstairs conference room of the Azusa Light and Water Administration Building, 729 N. Azusa Avenue, Azusa, California 91702 and proceeding to each job site. Specifications and bid forms may be obtained from the office of Azusa Light &Water. No bid shall be considered unless it is made on a proposal form provided for that purpose, sealed and filed with the City Clerk at the above address, on or before the time specified for receiving bids. Each bid must be accompanied by a bidder's bond, cash, certified check, or cashier's check made payable to the City of Azusa, for an amount equal to at least ten percent (10%) of the amount bid, such guarantee to be forfeited should the bidder to whom the contract is awarded fails to enter into the contract. Pursuant to the Labor Code of the State of California, the City of Azusa has ascertained the general prevailing rate of per diem wages in the locality in which the work is to be preformed for each craft or type of workmen needed to execute the proposed contract. These prevailing rates are on file in the office of the City Clerk and will be made available to any interested party upon request. The successful bidder must pay the prevailing rates, post copies thereof at the job site(s) and otherwise comply with applicable provisions of State Law. The successful bidder will be required to furnish Labor and Material Bonds in an amount equal to one hundred percent (100%) of the contract price and Performance Bonds in an amount equal to one hundred percent (100%)of the contract price. Bonds shall be secured by a surety company or surety companies satisfactory to the City annually and admitted in California. The City of Azusa requires that all contractors be licensed with the State of California in their particular area of expertise. Per Section 7028.15(e) of the Business and Professions Code, a license contractor shall not submit a bid to a public agency unless his or her contractor's license . appears clearly on the bid, the license expiration date is stated and the bid contains a statement that the representations therein are made under penalty of perjury. Any bid not containing this information, or a bid containing information which is subsequently proven false, shall be considered non-responsive and shall be rejected by the City of Azusa. All bidders are required to completely fill out the"Contractors License Declaration"contained in the bid documents. The City of Azusa reserves the right to reject any and all bids or parts thereof; and to waive any informality in such bids. Azusa Light&Water also reserves the right to reject the lowest bid if the contractor is not a responsible bidder. Vera Mendoza, City Clerk City of Azusa Publish: San Gabriel Valley Tribune Publish Date: September 30, 2004 NIB- 1 076 INSTRUCTIONS TO BIDDERS AZUSA LIGHT AND WATER FACILITIES JANITORIAL SERVICE SECURING BID DOCUMENT The Bid Document may be secured from the Azusa Light and Water, 729 N. Azusa Avenue, Azusa, California 91702. A non-refundable fee of$10.00 will be charged for each set of Bid Document and $15.00 if requested by mail. PROPOSAL In order to be considered, bids shall be made in accordance with the following instructions: A. Bids shall be made upon the forms provided therefor in the Proposal, with all items which the Bidder is bidding properly filled out; numbers shall be stated in writing and in figures, signatures of all persons signing shall be in longhand; completed forms shall be without interlineations, alterations or erasures. B. All bids submitted shall include in the lump sum or unit prices bid, all sales or other taxes of City, State or Federal Government of every nature in effect at the time of bidding. In the event the total amount does not agree with the sum of the prices bid on the individual items, the prices bid on the individual item shall govern and the total for the schedule will be corrected accordingly. C. Bids shall not contain any recapitulation of the work to be done. Alternate proposals will not be considered unless called for. No oral, telegraphic or telephonic proposals or modifications will be considered. Unauthorized conditions, limitations, or provisions attached to a proposal will render it informal and may cause its rejection. D. All proposals or bids shall be accompanied by a certified or cashier's check or bid bond in the amount of not less than ten (10%) percent of the total amount named in the bidder's proposal. Said check or bond shall be made payable to the City of Azusa and shall be given as a guarantee that the bidder, if awarded the work, will enter into a contract and will furnish satisfactory Faithful Performance Bond and Labor and Material Bond, each of said bonds to be in the amount stated in the Notice Inviting Bids, within ten (10) calendar days after notification of award and mailing of the proposed contract to the successful bidder. In case of refusal or failure to enter into said contract, each check or bond, as the case may be, shall be forfeited to the City. If the bidder elects to furnish a Bid Bond as his proposal guarantee, he shall use the Bid Bond form herein, or one conforming substantially to it in form. E. Before submitting a bid, each Bidder shall carefully examine each site of the proposed work and read the Bid Document, which includes, but not limited to, Notice Inviting Bids, Plans, Specifications, Scope of Work/Services, Special Provisions, Addenda, and Contract to fully inform himself as to all existing conditions and limitations. F. Bids shall be delivered to the City Clerk, City of Azusa, on or before the day and hour set for the opening of bids in the Notice Inviting Bid advertisement, enclosed in a sealed envelope bearing the title of the work and name of the bidder. It is the responsibility of the bidder to see that his bid is delivered in proper manner and time. If any bid is received after the scheduled closing time, it shall be returned to the bidder unopened. G. Bids will be publicly opened and read at the time and place stipulated in the Notice Inviting Bids. WITHDRAWAL OF BIDS Any bidder may withdraw his bid by written request, signed by the bidder or his properly authorized representative. Such written request must be delivered to the place stipulated in the Notice Inviting Bids for receipt of bids prior to the scheduled closing time for receipt of bids. NIB -2 077 INTERPRETATION OF PLANS AND DOCUMENTS If any person who contemplates submitting a bid for the proposed contract is in doubt as to the true meaning of any part of the specifications or other parts of the proposed contract documents, or finds discrepancies in or omissions from the specifications, he may submit to the Administrative Services Division of Azusa Light &Water a written request for an interpretation or correction thereof. The person submitting the request shall be responsible for its prompt delivery. Any interpretation or corrections of the proposed contract documents will be made only by addenda duly issued, and a copy of such addenda will be mailed or delivered to each person receiving a set of plans and specifications. The City of Azusa will not be responsible for any other explanation or interpretation. ESTIMATED QUANTITIES The quantities given in the plans and specifications are approximate only, given as a basis of bid comparison, and the City does not expressly or by implication guarantee that the actual amount of the proposed work will correspond therewith. ADDENDA Any addenda issued before or during the time of bidding shall become a part of the contract documents and shall be covered in the bid and made a part of the contract. DISQUALIFICATION OF BIDDERS The City Council may reject any and all proposals or bids should it deem this is for the public good, and also the bid of any person who has been delinquent or unfaithful in any former contract with the City, and may reject all proposals or bids other than the lowest proposal or bid of any responsible bidder, and may award the contract for said work or improvement to the lowest responsible bidder at the prices named in his bid. IRREGULAR BIDS Bids may be rejected if they show any alterations of form, additions not called for, conditional bids, incomplete bids, erasures or irregularities of any kind. MATERIAL QUALITY A. GENERAL. Unless otherwise specifically provided on the specifications all workmanship, equipment, materials and articles incorporated in the work covered by this contract shall be the best available grade of their respective kinds. Whenever in the specifications any material, article, device, product, fixture, form,type of construction or process is indicated or specified by patent or proprietary name, by name of the manufacturer, or by catalog number, such specifications shall be deemed to be used for the purpose of establishing a standard of quality and facilitating the description of the materials or process desired, and shall be deemed to be followed by the words "or equal", and the contractor in such cases may, on written permission of the City, use any item, type or process which shall be substantially equal in every respect to that so indicated or specified. The City shall be the sole judge as to the equality of the substituted article. B. SUBSTITUTIONS. If materials other than as specified are used in bidding the work described in the General Conditions and/or shown on the plans,the bidder shall furnish a list of such substitutions giving name and manufacturer of each item to be substituted in order that such items may be checked before the contract is awarded. OPENING OF BIDS Bids will be opened and publicly read aloud in the City Clerk's Office at 213 East Foothill Boulevard, Azusa, California. In cases where only one bid is received, such bid may be properly opened and read aloud in the usual manner, and accepted at the option of the Azusa Utility Board. Bidders or their representatives and other interested persons may be present at-the opening and reading of bids. If any NIB- 3 078 bid or security furnished therewith is irregular or informal,the facts will be noted and publicly announced at the time of reading thereof. AWARD OR REJECTION OF BID The award of the contract, if it is awarded, will be to the lowest responsible bidder whose proposal complies with all the requirements described. The award, if made, will be made within thirty(30) days after the opening of the bids. All bids will be compared on the basis of the estimate of quantities of work to be done. BIDDERS SUBMITING MORE THAN ONE BID No person, firm or corporation shall submit more than one bid for the same work. A person, firm or corporation who has submitted a sub-proposal to a bidder or who has quoted prices on materials and/or labor to a bidder is not thereby disqualified from submitting a sub-proposal or quoting prices to other bidders. EXECUTION OF CONTRACT The contract and bonds shall be executed and filed by the successful bidder with the City Clerk of the City of Azusa no later than ten (10) days after notification of award and mailing of the proposed contract to the successful bidder. RETURN OF BIDDER'S GUARANTEE Within ten (10) days after the award of the contract,the City of Azusa will return the proposal guarantees accompanying each of the proposals which are not to be considered in making the award. All other proposal guarantees will be held until the contract has been finally executed, after which they will be returned to the respective bidders whose proposal they accompanied. NIB-4 079 BID FORM AZUSA LIGHT AND WATER FACILITIES JANITORIAL SERVICE THIS BID IS SUBMITTED TO: CITY OF AZUSA Office of the City Clerk 213 E. Foothill Blvd. P.O. Box 1395 Azusa, California 91702-1395 The undersigned Bidder accepts all of the terms and conditions of the Notice Inviting Bids, including without limitations those dealing with the disposition of bid security and that this Bid will remain subject to acceptance for 30 days after the day of Bid opening. If this Bid is accepted, Bidder agrees to enter into a contract with the City within ten (10) days after the date of City's Notice of Award to perform and furnish all work as specified in the contract. A check payable to the City of Azusa and certified by a responsible bank, Cashier's check, or Bidder's Bond for an amount not less than ten percent (10%) of the aggregate of the Proposal is attached hereto and is given as a guarantee that in the event of the Bidder's failure to do so within the time provided, said check or bond, as the case may be, shall be forfeited to the City of Azusa, or Surety's liability to the City of Azusa established. In submitting this Bid, Bidder represents, as more fully set in the contract, that: This Bid is genuine and not made in the interest of or on behalf of any undisclosed person, firm or corporation and is not submitted in conformity with any agreement or rules of any group, association, organization or corporation; Bidder has not directly or indirectly induced or solicited any other Bidder to submit a false or sham bid; Bidder has not solicited or induced any person, firm or corporation to refrain from bidding; and Bidder has not sought by collusion to secure for himself an advantage over any other bidder. Bidder has checked carefully all words and figures inserted in the Bid Schedule and understands that the City of Azusa will not be responsible for any errors or omissions on the part of the undersigned in making up his bid. In case of discrepancy between words and figures, the words shall prevail. Bidder has examined copies of all the bidding documents and of the following addenda (if any) all which is hereby acknowledged and that the bid includes the cost of all additional work specified thereon: Date Number The undersigned Bidder is licensed in accordance with the laws of the State of California. If Corporation, affix Corporate Seal Bidder's Name (Company Name) Authorized Signature Date Name: Title: NIB -5 080 INFORMATION REQUIRED OF BIDDER The bidder is required to supply the following information. Additional sheets may be attached if necessary. If requested by the City, the bidder shall furnish a notarized financial statement, references, and other information, sufficiently comprehensive to permit an appraisal of his current financial condition. 1. Company Name: 2. Address: 3. Telephone: 4. Type of Firm: Individual ( ) Partnership ( ) Corporation ( ) Others: 5. Corporation organized under the laws of the State of since year 7. Names and Titles of chief officers of the firm: NAME TITLE 8. Number of years of experience in projects of this type: years. 9. Reference of three projects of this type: 1. Company: Contact Person: Address: Telephone: 2. Company: Contact Person: Address: Telephone: 3. Company: Contact Person: Address: Telephone: NIB - 6 CONTRACTOR'S LICENSE DECLARATION (Business and Professions Code Section 7028.15) The undersigned declares that he or she is (Title) of (Bidder), (Company Name) 1. Contractor's License Number: State 2. Contractor's License Classification: 3. Expiration Date of Contractor's License: 20 4. Bidder acknowledges that Section 7028.15(e) of the Business and Professions Code provides as follows: "A licensed contractor shall not submit a bid to a public agency unless his or her contractor's license appears clearly on the bid, the license expiration date is stated and the bid contains a statement that the representations therein are made under penalty of perjury. Any bid not containing this information, or a bid containing information which is subsequently proven false, shall be considered non-responsive and shall be rejected by the public agency." The undersigned declares under penalty of perjury that the forgoing is true and correct. Executed on 20 , at (City and State where signed) Name of Company Typed Name Signature Title NIB-7 082 BID BOND FORM KNOW ALL MEN BY THESE PRESENTS, That as Contractor, and as Surety, are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of: dollars, lawful money of the United States, said sum being not less than 10 percent of the total amount of the bid for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. WHEREAS, said Contractor has submitted a bid to said City to perform all work required under the City's Specifications entitled: "AZUSA LIGHT AND WATER FACILITIES JANITORIAL SERVICE" NOW THEREFORE, if said Contractor is awarded a contract by said City, and, within the time and in the manner required under the heading "Instructions to Bidder's" bound with said Specifications, enters into a written contract on the form of Agreement bound with said Specifications and furnished the required insurance and required bonds, one to guarantee faithful performance and the other to guarantee payment of labor and materials, then this obligation shall be null and void, otherwise it shall remain in full force and effect. In the event suit is brought upon this Bond by said City and judgment is recovered, (or settlement made which is favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a reasonable attorney's fee to be fixed by the court. SIGNED AND SEALED, this day of Contractor Suret By BY Its Its By BY Its Its Surety's Phone Address ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY. NIB-8 0811 SCOPE OF SERVICES AZUSA LIGHT AND WATER JANITORIAL SERVICE Contractor shall be responsible for janitorial service at the office locations listed in the Service Schedule as outlined below: SERVICE SPECIFICATIONS Contractor shall provide all necessary cleaning supplies and equipment as may be required to perform the cleaning assignments outlined in the Service Specifications. All supplies and equipment shall be of the highest quality possible and environmentally safe to protect the safety, health, and well being of all individual. Safety devices should be used where applicable. A list of supplies and equipment, including but not limited to, cleaning supplies, electrical equipment. Custodial tools, and safety devices shall be provided to Azusa Light and Water. Azusa Light and Water shall furnish expendable supplies outlined in the Service Specifications such as paper towels, toilet tissue, toilet seat covers, sanitary napkins, deodorants, hand soaps, disposable drinking cups, and plastic liners. As supplies become low, Contractor's personnel shall leave a Janitorial Supplies Requisition Form on the receptionist desk of each location. Contractor's personnel shall conduct the service after the business hours per Service Specifications to eliminate all visible dust, dirt, litter, grime, stains, smears,finger marks, etc., to the greatest practical degree possible. Daily service shall be conducted on every Monday, Tuesday, and Wednesday. Weekly service shall be conducted in conjunction with the Daily service items on either Friday or weekend. Monthly service shall be conducted in conjunction with the Daily service items on the first week of the month either Friday or weekend. This replaces the Weekly service scheduled for the week. Quarterly service shall be conducted in conjunction with the Daily service items on the first week of the quarter either Friday or weekend. This replaces the Monthly service scheduled for January, April, July, and October. Yearly service shall be conducted on the first week in December either Friday or weekend. Care will be exercised to the baseboards, walls and furniture during cleaning so that it will not be splashed, marred, disfigured or damaged. Defective or inoperable building equipment will be brought to the attention of the Administrative Services Division of Azusa Light &Water, such as leakage or other plumbing problem, defective lights or lighting, doors and/or gates not properly secured, other unusual circumstances that might affect the security, maintenance or effectiveness of the facility. Janitor closets, equipment and materials shall be kept in a neat, clean and orderly condition at all times. Any flammable materials shall be properly contained to meet fire codes. Upon completion of cleaning: • Arrange office furniture in an orderly fashion • Turn off designated lights • Lock and secure designated doors and windows Building alarm shall be set on when leaving the building. NIB -9 084 Keys that are issued to the Contractor and its personnel are the properties of Azusa Light and Water and shall be accounted for at all times. Upon termination of the contract, Contractor shall return the keys . promptly. COMPENSATION Billing - Contractor shall submit monthly an invoice for all work completed per approved Scope of Services and extra work pre-approved by the Administrative Services Division of Azusa Light &Water for the previous month. Contractor agrees to credit any charges for incomplete work. All requests for payment over and above routine maintenance as outlines in the Scope of Services must be pre-approved by Azusa Light & Water and accompanied by a cost breakdown of labor, materials and mark-up with invoice copies as back-up: 'Reimbursable expenses - Contractor shall submit with monthly billing a list of pre-approved requests of replacement items, date of repairs, area of work performed, itemized part replacement and cost of parts. Azusa Light &Water will authorize payment for materials at a rate not to exceed 15% of Contractor price for markup, and 10% surcharge for applicable labor. Contractor shall submit photocopies of all material invoices for verification with billing. Contractor shall replace, at own expense, of damaged equipment and material caused by Contractor's negligence. EXTRA WORK Azusa Light &Water may request that Contractor perform Extra Work. Contractor shall not perform, nor be compensated for Extra Work without written authorization from the Administrative Services Division of Azusa Light&Water. Rates for certain extra work are set forth in the Extra Work Price Sheet. CERTAIN WORK ADVANCE NOTICE Contractor shall submit to the Administrative Services Division of Azusa Light &Water one week in advance of performing maintenance operations for the Yearly service. SUPERVISION AND INSPECTIONS Contractor shall be responsible to screen its personnel for drug and alcohol, background check, ability to perform the service, and morale character. Contractor is responsible to notify of any personnel change for the service locations. Contractor shall develop and maintain a service quality control system and submit an inspection report to Azusa Light and Water no less than once a week. Contractor shall also accompany Azusa Light &Water authorized personnel for inspections on a quarterly basis. Any deficiency found thereof shall be recorded on the Azusa Light and Water Inspection Report attached herewith by the Azusa Light & Water's authorized inspector. Any deficiency reported by the Contractor or by Azusa Light and Water shall be corrected promptly by Contractor's personnel and Contractor shall provide appropriate credit to Azusa Light and Water. PREVAILING WAGES Contractor shall be responsible for submittal of prevailing wage documentation upon request by Azusa Utility Board. CONTRACT ADDITIONS Azusa Utility Board reserves the right to solicit and award proposals for additional contract areas. New additional areas are not a guarantee to the Contractor. NIB- 10 SERVICE SPECIFICATIONS AZUSA LIGHT AND WATER JANITORIAL SERVICE See attachment: "Janitorial Service Specs.xls" NIB- 11 086 SERVICE SPECIFICATIONS AZUSAUGHp AND WATER JANITORIAL SERVICE LOCATIONS«.mi.- µ'P'AREA':x• ""`Y�°"`.-DAILY'«.+T-s'z -- WEEKLY i- v;t MONTRLY —,T '-e- UARTERLY' =_. YEARLY.=ar+.=. Office,Conference Baseboards Dust Wpe or tlamp wigs to Room removes ole Basins/Sinks/Faucets Clean&sandure Cabinets/File Cabinets/ Dust WN anchor damp Credenzas Exterior vile to remove stains Carpets Vacuum and remove spats Vacuum and remove Treat carpets for static Steam dean spots electricity contra(if not Integrated h the fabric Ceiling&Comers Dust wipe andfor damp wipe or vacuum to remove stains,insects and spider "he Counters Dust wipe and/or damp Wipe to remove stains Desktops Dust wipe anchor damp Wipe to remove stain for cleared area Doors/Door Frames Dust was arWor damp wi Oto remove stains Drinking Fountains Clean&Polish(eliminate stains and mineral deposits) Floors Dust map anchor damp Strip&apply a new coat of (ceramic,resilient,hard mop to remove any spot floor finish;bug as surface) and/or spins necessary to produce uniformly shining ap,eaurance Glasses Clean&paish(remove (Par ilion,Door) ringer marks&smudges) Light Fxtures Dust Wipe-No,damp Thorough dust wipe or wipe to remove stains dampwipe light SMches Dust wipe and/or damp was to remove stains Partitions Dust wipe anchor damp Wipe to remove stains Posts&Pictures Dust wipe andror damp wipe to remove stains Supplies Check&replenish (paper towels,disposal (supplies furnished by drinlkina cum Moa L& Tables Oust wipe and/or damp Wipe to remove stains Telephones Clean&sanitize Trash Receptacles&Paper Empty&clean all trash Shredders containers and dispose of all bash&rubbah(finers furnished by L&W) Upholstered Fumilure Dust Mae Vacuum Vents Oust e Wells Spa clean to remove snote&smudes Window Blinds Dust wipe and/or damp Thorough dust wipe or Wipe WremWe stains damp Sips Wintlows 101ean inside Clean iraude&outside Windows Sills Dust was, Lobbles,Corridors Bavaboards Dust wipe andror damp Wipe to remove stains Carpels Vacuum and remove spots Vacuum and remove real carpets for static Steam dean spots electricity control(it not ince rated in the fabric Ceiling&Comers Dust wipe and/or damp wipe or vacuum to reprove stains,Insects and spider webs Counters Dust ripe and/or damp Moe to remove stains Drinking Fountains Clean&Polish(eliminate stains and mineral deposits) Entrance Doors&Glasses Damp wipe Floors Dust mop anchor damp Damp mop Strip&appy a new coat of (ceramic,resilient,hard mop to remove any spot floor finish;bull as surface) anchor spills necessary to produce unifunntyshining appearance Light Fixtures Dust wipe and/or damp Thorough dust wipe or wipe to remove stains damp wipe light Switches Dust wipe and/or damp wi to remove Mains Posts&Pictures Dust wipe and/or dump Pipe W remove stains Public Tele hones Clean&sanitize ables oust M"anchor damp Wipe to remove stains ,NW...In%War,B ,d1.VBRpatle 2049-21 nalew tlema d-(aspics spec) 11 1V( SERVICE SPECIFICATIONS ANSA LIGHT AND WATER JANITORIALSERVICE LOCATION- AREA Y.^ rn DAILY I WEEKLY vka4+^=MONTHLY'.' QUARTERLY�-YEARLY Trash Receptacles Empty 6 clean all trash containers and dispose of an trash 8 rubbish(liners furnished!by L&W) Upholstered Furniture Dust Ape Vacuum Vents Dust Ape Walls Spot clean to remove .0013 6 smudes Window Blinds Dust wipe antler damp Thorough dust ripe or Ace 0 remove stains dome Ws Wind Clean inside Clean inside 8 outside Winam SMS IDustAve Restreons Baseboards Dust Wipe snorer damp W.toremove stains Sears/Siniks/Faucet, Clean B sanitize Caning 8 Comers Dust Wipe antlor damp Ape orvacuum to remove stains,Insects and spider be Doors/Door Frames Dust wipe and/or damp Ape to remove stains Floors Dust mop antler damp Damp mop Strip B appy a new coat of (ceramic,resilient,had mop to remove any seen floor finish;buff as surface) and/orspins necessary to produce uniformlyshining apoearanc. Light Futures Dust wipe an Nor damp Thorough dust wipe or Woo to remove stains damp wipe Light Swinches Dust wipe ardor damp Am to remove Stains Minors.Glasses,Chromes, Clean B Polish(remove Frames finger manes 8 smudges) Paper Towel Cabinet Dust Ape and/or damp Exterior Alps to remove stains Panifions Ousl wipe and/or damp Ape to renwve stains ShcAws Clean 6 sanitz Remove hard water slams Supplies Check B replanish (paper tawels,soap,seat (supplies furnished by covers.toilets dears. LSW) sanitary napkin Trash Receptacles Empty 8 clean all trash containers and dispose of an trash 8 rubbish(liners furnished by L8 W) Urinals,TOM Bowls 8 Clean 8 sanuiz inside, Seats outsrde,topside and nderslee Vent, pot Se Wads Spon clean to remove ispots 8 smudes Windows Clean inside Clean Inside 8 outsitle Wintlows Site juiiia.pe Kitchen,Lunchroom Baseboards Dust W1pe ardor damp Woe 0 remove stains Basins/Sinks/Faucets Clean 8 sanitize Cabinets Exterior Ape to mmov,stains Ape to remove stains Ceiling 8 Comers Oust wipe and/or damp ' - wipe or vacuum to remove stairs,insects and spider r damp webs Counter Dust Wipemtle souif b remove stains Dish Washer Dust wipe antlor damp wipe W remove stains Doors/Door Frames Dust wipe and/or damp - Am,to remove stains Drinking Eoumains Clean 8 Palish(eftinate stains and mineral e pens Floors Dust mop antlw damp Damp mop Ship B appy a newcoat of (ceramic,resilient,had mop to remove any spot Moor finish;buff as surface) and/or spins necessary to produce uniformly shining appearance Glasses Damp Ape(remove ringer (Door) marks 8 smudges) Light RAures Dust wipe and/or damp Thorough dust wipe or W,to remove stains damp Wpe Ught Switches Ousl wipe antl/or tlamp vi to remove slatll9 Microwave Dust wipe an lordamp Woe to rem We spots DOVI inside a outside 0 Q 8 ieAw..haM h%Nilify PneN"".Is ApeMe 2W4-9�Zi RW—Ilemr Jenilo,Nl$pry%tlsna+'9 V&ComNo9'dO,.ticc Iservke Cgcr) ff o SERVICE SPECIFICATIONS AZUSA LIGHT AND WATER JANITORIAL SERVICE LOCATION " `.APER .- "F1 DAILY' "'°�.WEEKLY.=a — YEARLY Paper Tow!Cabinet Dust wipe and/or clamp EXtedor Wipe to remove stains Posta&Pictures Dust aanNor damp wpe t0 remove slams Refrigerator Net wipe abW.,damp wipe to remove spots both inside&outside Soap Dispensers Check&reIBI(Supplies lumished by L&W Stave Dust wipe and/or damp WN to remove slams Supplies Check&replenish (paper towets,disposal - (supplies furnished by drinking core,so UW) Tables Dust wipe ancYor damp Mine to remove stains Telephones Clean&sanitize Trash Peceplades Empty&clean aO trash containers and dispose of all trash&rubbish(finers fumish.d by L&W) Upholstered Furniture Dust wi pe Vacuum Vending Machines Dust wipe and/or damp MN to remove spats both Inside&outside Vence Dust Wide Wa0s Spot clean to remove s ots&smudes Window Minds Oust wipe and/or damp Thorough dust min,or wi a to remove stains damp wipe Window Clean inside Clean inside&outside Windows Si0s Dull e Ekvetcr,Stairs Baseboards Dust wipe and/or damp Wipe to remove stains Ceiling&Comers Dust wipe and/or tlamp WW M remove stains, insects andspider Webs Doors/Door Frames Dust wipe an Nor dump moe to remove slams Floors Dust mop andler damp Damp mop Stnp&apply a newcoat of (ceramic,res0ient,had mop to remove any spot door finish;buff as surface) anNorsp0ls - necessary to producea uniformlyshintng aignearagince Light Snilches Dust wipe and/or damp Wipe to remove stains Railings Dust wipe and/or damp wipe W remove stains Walls Spot clean to remove smols&smuces W intlows Clean inside Clean Inside&outside OulsIde of Buildino ISide.alks Swee Parkin areas Swee Wads Pressure wash V�g ry1WO ,a iIn X:ulllirye t,j Apanve UB Rgenla 2U49 7ReWM dem.JenMMlswEilT.pecrB UB{rnw6oa2N-z(sank.Seon) SERVICE SCHEDULE AZUSA LIGHT AND WATER JANITORIAL SERVICE AMOUNT NO. LOCATION PER MONTH 1 Light and Water Administration Building 729 N. Azusa Ave., Azusa $ Office Hour: Monday thru Thursday, 7:00 a.m. to 5:30 p.m. (figures) Include: Suite 2C and 2E Exclude: Main San Gabriel Basin Watermaster located inside the building (address: 725 N. Azusa Ave., Azusa) words Dollars 2 Contractors State License Board 729 N. Azusa Ave., Suite 213, Azusa $ Office Hour: Monday thru Friday, 8:00 a.m. to 5:00 p.m. (figures) -Dollars words 3 San Gabriel River Water Committee 729 N. Azusa Ave., Suite 2D, Azusa $ Office Hour: Monday thru Friday, 8:00 a.m. to 5:00 p.m. (figures) Dollars words 4 Electric Division Yard 809 N. Angeleno Ave., Azusa $ Office Hour: Monday thru Thursday, 6:30 a.m. to 5:00 p.m. (figures) (Office will move to 1020 W. 10'" St., Azusa in 2005. Service charge may be adjusted upon Contractor and Azusa Light&Water mutual agreement.) Dollars words 5 Gladstone Construction Yard 710 W. Gladstone St., Azusa $ Office Hour: Monday thru Thursday, 6:30 a.m. to 5:00 p.m. (figures) Dollars words NIB - 12 090 EXTRA WORK PRICE SHEET AZUSA LIGHT AND WATER JANITORIAL SERVICE UNIT COST 1. Labor cost: a. Regular $ per hour b. Overtime $ per hour 2. Carpet cleaning: - a. Steam clean $ per b. Dry chemical clean $ per 3. Anti-static carpet protection $ per 4. Windows cleaning: a. Interior $ per b. Exterior $ per 5. Baseboards cleaning $ per 6. Exterior wall pressure wash $ per NIB - 13 y ©91 INSPECTION REPORT AZUSA LIGHT AND WATER JANITORIAL SERVICE See attachment: "Janitorial Inspection Rpt.xls" NIB- 14 092 INSPECTION REPORT AZUSA LIGHT AND WATER JANITORIAL SERVICE :rformance Deficiency Notification Date: sire of Contractor. Inspection Date: spastics Location: Inspection Type: )CATION DAILY$ �:TMro WEEKLY'-- MONTHL'Y*a-3" DUARTERLY,.:+1ts*- YEAll CIIJWk lCOnseenta - flies,Conference Baseboares Dust Wipe or damp wipe to remove sots Basins/Sinks/Faucets Clean&sanitize Cabinets/Fee Cabinets/ Dust wipe and/or damp Credenzas Exterior wi eto remove stains Carpets Vacuum and remove spots Vacuum and remove Treat carpets for static Steamclean Sam simplicity central(if not integrated in the taws Ceiling&Comers Dust wipe We,damp _ wipe or vacuum to remove stains,insects and spider webs Counters Dust wipe and/or damp wipe to remove stairs Desktops Dust Wpe and/or damp wi,to RmOve stairs for cleated area Doors/Door Frames Dust Wipe and/or damp wi e to remove stains DHnkiag Fountains Clean&Palish(eliminate stains and mineral deposits) Floors Dust mop and/or damp Dampmop Strip&apply a new coal of (ceramic,resilient,hard map to remove any spot floor finish;buff as surface) andfor spills necessary to produce unifonnlyshining armed... Glasses Clean&palish(remove (Prouder,Door) forger marks&smudges) Light Fixtures Dustwipeand/ordamp Thorough dust wipe or wipe to remove stains damp wipe Light Switches Dust wipe and/or damp wi to remove stains Partitions Dust wipe and/or damp Nips to remove stains Posts&Pictures Dust wipe andror damp wpe to remove stains Superies Check&replenish (paper towels,disposal (supplies furnished by drinking cups,soup) L&W Tables Dust wipe and/or tlamp wipe to remove stain Telephones Clean&sanitize Trash Receptacles&Paper Empty&clean all trash Shredders containers and dispose of all trash&rubb'e h(liners furnished by L&W) Upholstered Furniture Dust w a Vacuum Vents M Walls ove Window Bustle r damp Thorough dust wipe or tains dam wie Windows Clean insideClean inside&omside Windom Sills Dust wese abblea,Cordtlore Baseboards Dust wipe and/or damp wi e to remove stains Carpels Vacuum and remove spats Vacuum and remove Treat rarpentor static Steam clean spots electintegrate in (Tinct integrated in the fabric Ceiling&Comers Dust wise and/or damp wipe or vacuum to remove stains.insects and spider webs Counters Dust Wide and/or tlamp - Wide to remove stains Drinking Fountains Clean It Polish(eliminate stains and mineral de is Entrance Doors&Glasses Damp wipe - Floors Dust mop and/or damp Damp mop Strip&appy a new coat of (ceramic,resilient,had mop to remove any spot floor finish;bug as surface) and/or spills necessary to produce uniformtyshining ,wearan, Light Fixtures Dust wipe and/or damp Thorough dust wipe or wipe to remove stains tlamp sips Light Switches Dust wise ancifor damp was to remove stains 093 �:1W...In%lti0ry Baartl Aaxtla UB A,..2W6&2i Rfrd—nems R,I) INSPECTION REPORT AZUSA UGW AND WATER JANITORIAL SERVICE __.. LOCATIOM-'; _;.z AREAE *E-- DAILY `^=WEEKLY, : -- MONTHLY=h.++m^ "GUARTERLY.+�' VEARLY��� CJUri'�Comments Posts&Pictures Dust wipe and/or damp wipe to remove stains Public Tele Hones Clean&canalize Tales Duslwipe and/or damp vi a to remove stains Trash Recepla cies Empty&clean at trash containers and dispose of all trash&rubbish(liners furnished by L&W) Upholstered Fumhum Dust Woe Vacuum Vents Dust Who Wells Spot clean to remove Mots&amuses Wintlow BFintls Dusl Wipe anNar tlamp Thorcughdusl wipe or ad/ laremeve stains da WI C Windows Clean Wattle Clean insitle 8 eNside Windom Sins Dust wpe Restrooms Baseboards Dust wipe and/or damp Woeto remove Mains CamComes; Dust Clean B sanitize Ceilings&8 Cors Dust nips CUUM damp wipevacuumt remove stains,s,insects and spider webs Doors/Door Frames Dusf wipe and/or damp wi elo remove stains Floors Dust mop and/or tlamp Damp mop Strip&apply a new coat of (ceramic,resilient,hard mop to remove any spot floor Finish;buff as surface) and/or spills necessary to produce. unifoonlyshnfng appearman.t, Light Fixtures Dust wipe and/or damp Thorough dust wipe or ww to remove va lns damp Miss Light Switches Dust vdpe ander damp Mmna W et0@TWBStans Frames maGlasses,Chromes, Clean dis&(femove Frames finger marks8smudges) Paper Towel Cabinet Dust wipeand/cr damp Eidedor wipe to remove stains Partitions Oust wipe and/or damp wipe to remove stains Shinners Clean&sanllli Remove hartlwater stains Supplies Check&replenish (paper towels.soap,seat (supplies furnished by covers,toilets tissue. L&W) sanha na kins Trash Receptacles Empty&clean all Yash comeruirs slid dispose of all trash&rubbish piners furnished by L&W) Urinals,Toilet Bowls& Clean&sanitiz inside, Seats WLSltle,topside and unde skle Vers Dust wi e Walls Spot dean to remove s is&smudes Ing Clean Inside Clean incise&outside Windows Sills Dust Kitchens Lunchroom Baseboards Dust wipe andfor damp Wine to remove shins Basins/Sinks/Faucels Clean&sanitize Cabinets Exterior Dust wipe and/or damp wi to remove stains Ceiling&Lomers viva and/or damp A,pe etC claims, to rem W sts,,insects aid ntl SlWtler webs Counters oust woe and/or damp Who to remove stains Dish Washer Dust wipe and/or damp w.pe to remora stains Doors/Door Frames Dust wipe and/or damp YAW to remove stains Drinking Fountains Clean&Polish(eliminate slaps antl others] deposits) Floors Dust mop ander damp Damp mop Strip&apply—an.-.o.1 of (ceramic,reshienl had mop 10 remove any spot floor finish;buff as surface) and/orspins necessary to produce uniformlyshining a earamce Glasses Damp (Door) wfpe(remove finger marks 6 smudges) 4 094 sytWoMM1eel in K Unity BaeN Al UB Apw Mrii limn JenamnlS—ad51— bU&Carow6llffiel do(I,�xtbn Paan] INSPECTION REPORT AZUSA LIGW AND W ATER JANRORIAL SERVICE )CATION- AREA, -JWEEKMONTHLY—�ARTERLY+ YEARLY---, Mn'r10ommehms �' ' Light Fixtures Dust wipe ardlor damp Thorough dust wipe or wipe to remove stains damp wife tight Switches Dust wipe andror damp ori a to remove slams Microwave Dust wipe and/or damp wipe to remove spots both beide&outside Paper Towel Cabinet Dust wipe an Nor damp Exterior WN Nremove stains Posts&Pictures Dust wipe and/or damp wipe to remove stabs Refrigerator Dust wipe and/or damp wipe to remove spots both inside 8 outside Soap Dispensers Check B refill(suppin. Nmishedb L&W Slower Oust wipe and/or damp wipe to remove stabs Supplies Check B replenish (paper towels,disposal (supplies furnished by drinkha coca.ma L$W Tables Dust wipe endear damp wipe to remwe stains Telephones ICImn 8 sanitize Trash Receptacles Empty B clean all trash conialners and dispose of all trash S rubbish(finers lumished by LhW) Upholstered Furniture Dustwia Vacuum Vending Machines Dust wipe andror damp wipe to remove spats both Inside 6 outside Vents Duslwi Waft Spot clean to remove spicas&amuses Window Blinds Dust wipe andeor tlamp 5orough dust-rye or wito remove stains damp wipe Windows Clean inside Clean inside 8 outside Windows Site Dustwi e levator,Stairs Baseboards Dust wipe andlor damp W to remwe stabs Ceiling&Comers Dust wipe mayor damp wipe to remove stains, bsects andspider webs Doors/Doer Frames Dust wipe amYor damp W to remwe stains Floors Dust mop and/or damp Damp mop Strip&appy a new Croat of (ceramic,resilient,hard mop to remove any spot Ilam finish;bull as surface) andlor spills necessary,to produce unionnlyshining aploamance Light Sam. Dust wipe andror damp 1M etommweslalos Railings Dust wipe and/or damp wipe to remwe stains Walls Spot clean to remwe s le&smutles Windom Clean inside Clean insitle S outside lutslde of Building Sidewalks Swee Parkb areas $wee Ware it I itPleeeule wldsh ,ddltlonal Comments: tspeplon Evaluation: Upon inspection,the above Ileted Items noted as Un-uncorrected were found to be deficient,and as reported to the Contractor on the nmificatlon dated, luusa Ught and Water has atermined the value as follows: Substandard Performance: $ Non-Performance: S Total Value: $ ty Inspector: Print Name: ,AW...,0S Wilily QmN Agar.M3 Apwwa aao-.Vflevbw XmmeJerilamlSenAitlSpae+9LBCbrooNDSeef.Em(ln .iongerurl) JANITORIAL SUPPLIES REQUISITION FORM AZUSA LIGHT AND-WATER JANITORIAL SERVICE See attachment: �t ]an itorialSu ppl iesReq uisitionForm.xls NIB- 15 096 AZUSA LIGHT AND WATER JANITORIAL SUPPLIES REQUISITION Requested By: Date: Signature: Company: Storage Location: Due Date: For Office Use No. Qt y Unit Descriptions Item No Wim_ Acct'No ,, Nl ------------ r� b! �yg.�axy�✓� F$':5�2 J T v' sY'�iW �,� x e t �✓x ' Approved By fi � :, Date-. Processed By �� � �"� - 6 + � M-F mks' M0: sy.\Worksheet in%:Utlity Board Agenda UB Agenda 20(0-9-9 Review Items Janito6al5erv-BidSpecv8-U&Consent-092704-dao(Janitorial) 097 97 CITY OF AZUSA AGREEMENT FOR MAINTENANCE SERVICES 1. PARTIES AND DATE. This Agreement is made and entered into this day of , 20_ by and between the City of Azusa, a municipal corporation of the State of California, located at 213 East Foothill Boulevard, Azusa, California 91702-1295, County of Los Angeles, State of California, (hereinafter referred to as "City") and a with its principal place of business at (hereinafter referred to as "Contractor"). City and Contractor are sometimes individually referred to as "Party" and collectively as"Parties" in this Agreement. 2. RECITALS. 2.1 Contractor. Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing 'anis torial services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City. 2.2 Project. City desires to engage Contractor to render such services for the Azusa Light and Water Facilities Janitorial Service (`Project') as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional ianitorial services necessary for the Project ("Services"). The Services are more particularly described in the Scope of Services 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. 3.1.2 Term. The term of this Agreement shall be from to A- 1 098 unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Contractor. 3.2.1 Control and Payment of Subordinates: Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Contractor 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 Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor 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. Contractor 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. Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in the Scope of Services in Exhibit "A" attached hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall respond to Contractor's submittals in a timely manner. Upon request of City, Contractor 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 Contractor shall be subject to the approval of City. 3.2.4 City's Representative. The City hereby designates 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. Contractor shall not accept direction or orders from any person other than the City's Representative or his or her designee. 3.2.5 Contractor's Representative. Contractor hereby designates , or his or her designee, to act as its representative for the performance of this Agreement ("Contractor's Representative"). Contractor's Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor's Representative shall supervise and direct the Services, using his best skill and attention, and shall be A-2 099 responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.6 Coordination of Services. Contractor 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. 3.2.7 Standard of Care: Performance of Employees. Contractor 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. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor 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, Contractor 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 Contractor's failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors 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 Contractor and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.8 Laws and Regulations. Contractor 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 CaVOSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.2.9 Insurance. 3.2.9.1 Time for Compliance. Contractor shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required A-3 100 under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. 3.2.9.2 Minimum Requirements. Contractor 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 Contractor, its agents, representatives, employees or subcontractors. Contractor 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. Contractor 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 re ate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers'Compensation and Employer's Liability: Workers' Compensation limits as required by the Labor Code of the State of California. Employer's Liability limits of$1,000,000 per accident for bodily injury or disease. 3.2.9.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor 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 volunteers shall be covered as additional insured with respect to the Work or operations performed by or on behalf of the Contractor, 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 Contractor'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 Contractor's insurance and shall not be called upon to contribute with it in any way. A-4 .101 (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 Contractor or for which the Contractor 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 Contractor'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 Contractor'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 Contractor. (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. 3.2.9.4 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers. 3.2.9.5 Deductibles and Self-Insurance Retentions. Any deductibles or self- insured retentions must be declared to and approved by the City. Contractor 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 Contractor shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 3.2.9.6 Acceptability of Insurers. Insurance is to be placed with 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. 3.2.9.7 Verification of Coverage. Contractor shall furnish City with original A- 5 102 certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at anytime. 3.2.10 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 3.2.11 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1770 et seq. ('Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works contracts." If this is a "public works contract" pursuant to the California Labor Code and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Copies of the prevailing rate of per diem wages for each craft, classification or type of worker needed to execute this Agreement shall be made available to interested parties upon request, and shall be posted at the Project site. Contractor agrees to defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.2.12 Bonds. 3.2.12.1 Faithful Performance Bond. Contractor shall execute and provide to City concurrently with this Agreement a Faithful Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided in Exhibit "C" attached hereto. No payment will be made to Contractor until it has been received and approved by the City. 3.2.12.2 Labor and Material Bond. Contractor shall execute and provide to City concurrently with this Agreement a Labor and Material Bond in the amount of the total, not-to- exceed compensation indicated in this Agreement, and in a form provided in Exhibit "D" attached hereto. A-6 103 No payment will be made to Contractor until it has been received and approved by the City. 3.2.12.3 Bond Provisions. Should, in City's sole opinion, any bond t b unsatisfactory, Contractor shall renew or replace the become insufficient or any surety be found o e s y, p affected bond within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty(30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if,any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause. 3.2.12.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best's rating no less than A:VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City. 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in the Scope of Services in Exhibit "A" attached hereto and incorporated herein by reference. The total compensation shall not exceed dollars ($ ) per month without written approval of City's Representative. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. 3.3.2 Payment of Compensation. Contractor shall submit to City a monthly itemized invoice which indicates work completed and hours of Services rendered by Contractor. The invoice shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall; within 30 days of receiving such invoice, review the invoice and pay all approved charges thereon. 3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City. A-7 .104 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Contractor 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. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City's Representative. Rates for certain Extra Work are set forth in the Extra Work Price Sheet in Exhibit"B". 3.4 Accounting Records. 3.4.1 Maintenance and Inspection. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor 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. Contractor 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 Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor 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 Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor 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 Agreement shall be given to the respective parties at the following address, or at such other address as the respective A- S 105 parties may provide in writing for this purpose: CONTRACTOR: CITY: Azusa Light &Water P.O. Box 9500 Azusa, CA 91702-1295 Attn: Steven Yang Administrative Services 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 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. 3.5.4 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 3.5.5 Indemnification. Contractor 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 Contractor, 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. Contractor shall defend, at Contractor's own cost, expense and risk, any and all such aforesaid suits, actions o*r other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents or volunteers. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, A-9 106 employees, agents or volunteers, in any such suit, action or other legal proceeding. Contractor 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. Contractor'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. 3.5.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. 3.5.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Los Angeles County. 3.5.8 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.5.9 Citv's Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project. 3.5.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.5.11 Assignment or Transfer. Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.5.12 Construction: References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope,content, or intent of this Agreement. 3.5.13 Amendment: Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. A- 10 107 3.5.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.5.15 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.5.16 Invalidity: Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5.17 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, 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. Edemotion, .5.1 S Equal Opportunity Employment. Contractor represents that it is an equal employer and it shall not discriminate against any subcontractor, employee or applicant for t because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non- ion shall include, but not be limited to, all activities related to initial employment, upgrading, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall also all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Planated programs or guidelines currently in effect or hereinafter enacted. 3.5.19 La or ertification. By its signature hereunder, Contractor 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. 3.5.20 Authority to Enter Agreement. Contractor 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 A 11 108 Agreement and bind each respective Party. 3.5.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6 Subcontracting. 3.6.1 Prior Approval Required. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. CITY OF AZUSA By: By: Name: Name: Title: Title: Attest., Attest., By: BY: Name: Vera Mendoza Name: Title: City Clerk Title: Approved as to Form: By: Best Best &Krieger LLP City Attorney A- 12 109 EXHIBIT "A" SCOPE OF SERVICES A- 13 � � � EXHIBIT "B" EXTRA WORK PRICE SHEET A 14 � i S EXHIBIT"C" FAITHFUL PERFORMANCE BOND A- 15 FAITHFUL PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS, That as Contractor, and as Surety, are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of: dollars, lawful money of the United States, said sum being not less than 100 percent of the total Contract amount, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, and administrators, successors, and assigns, jointly and severally, firmly by these presents. WHEREAS, said Contractor has been awarded and is about to enter into the annexed agreement with said City to perform all work required under the City's Specifications entitled: "AZUSA LIGHT AND WATER FACILITIES JANITORIAL SERVICE' NOW, THEREFORE, if said Contractor shall perform all the requirements of said agreement required to be performed on his part, at the times and in the manner specified herein and shall indemnify and save harmless the said City, its officers, employees and agents, as therein stipulated, then this obligation shall be null and void, otherwise it shall remain in full force and effect. PROVIDED, that any alterations in the work to be done or the materials to be furnished, which may be made pursuant to the terms of said Contract, shall not in any way release said Contractor or said Surety thereunder, nor shall any extensions of time granted under the provisions of said Contract release either said Contractor or said Surety, and notice of such alterations or extensions of the Contract is hereby waived by said Surety. In the event suit is brought upon this Bond by said City and judgment is recovered, (or settlement made which is favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a reasonable attorney's fee to be fixed by the court. SIGNED AND SEALED, this day of Contractor Surety By BY Its Its By BY Its Its Surety's Phone Address ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY. A- 16 113 EXHIBIT "D" LABOR AND MATERIAL BOND A- " 114 LABOR AND MATERIAL BOND KNOW ALL MEN BY THESE PRESENTS, That as Contractor, and as Surety, are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of: dollars, lawful money of the United States, said sum being not less than 100 percent of the total Agreement/Contract amount, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. WHEREAS, said Contractor has been awarded and is about to enter into the annexed contract with said City to perform all work required under the City's Specifications entitled: "AZUSA LIGHT AND WATER FACILITIES JANITORIAL SERVICE" THE CONDITION OF THE OBLIGATION IS SUCH THAT, if said Contractor or any of his Sub- contractors, fails to pay for any materials, equipment, or other supplies, or for rental of same used in connection with the performance of work contracted to be done or for work or labor thereon of any kind, or fails to pay any of the persons named in Section 3181, California Civil Code or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant or for any amounts required to be deducted, withheld and paid to the Employment Developmental Department or its successor(s) from the work of employees of the Contractor and his Sub-contractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay for the same in an amount not exceeding the sum specified above. This bond shall inure to the benefit of any persons named in Section 3181 of said California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. This bond shall be subject to and include all of the consistent provisions of the Civil Code of the State of California relating to Payment Bonds for Public Works, including but not limited to Civil Code, Sections 3225-3226 and Section 3247-3252. PROVIDED, that any alterations in the work to be done or the materials to be furnished, which may be made pursuant to the terms of said Contract, shall not in any way release either said Contractor or said Surety thereunder; nor shall any extensions of time granted under the provisions of said Contract release either said Contractor or said Surety, and notice of such alterations or extensions of the Contract is hereby waived by said Surety. In the event suit is brought upon this bond by said City and judgment is recovered, (or settlement made which if favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a reasonable attorney's fee to be fixed by the court. SIGNED AND SEALED,this day of Contractor Surety By BY Its Its By BY Its Its Surety's Phone Address ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY. A- 18 115 NOW" to INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE�\� DATE: SEPTEMBER 27, 2004 WW SUBJECT: UPDATE ON SYSTEMS &SOFTWARE CUSTOMER INFORMATION SYSTEM This is an update to an item the Utility Board approved at the June 28, 2004 meeting for a new Customer Information System and Interactive Voice Response System to be purchased from third-party vendor, Systems &Software. Light &Water staff and Best Best &Krieger attorney Jeffry Ferre have reviewed and negotiated a contractual agreement with Systems &Software. Subsequently, Light &Water staff and Systems &Software worked out a mutually agreeable Statement of Work, tentative Implementation Plan, and related Exhibits. The contract with all attachments and exhibits has been signed by the City Manager, as instructed by the Azusa Utility Board and Azusa City Council. Interfaces to other third-party vendors for existing services benefiting Azusa utility customers are included in this project to ensure no interruption of services. An interface to the City's Sunguard BiTech Financial System is also included. Core team assignments have been made from Systems &Software and Azusa Light &Water Customer Service staff. The Go Live date along with other project milestones will be firmed up by early October. At this date it is anticipated Go Live with the new system will occur July 5, 2005. Prepared by: Karen Vanca, Assistant Director Customer Care &Solutions 11 ,4M ALUw `SA V CMI t'b'Fi EE INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE, DATE: SEPTEMBER 27, 2004 �V "� SUBJECT: PUBLIC POWER WEEK—OCTOBER 3-9, 2004 RECOMMENDATION It Is recommended that the Utility Board/City Council recognize that October 3-9 is Public Power Week. BACKGROUND Each year in October, about 2,000 public utilities from around the nation celebrate Public Power Week to extol the virtues of public ownership of their electric utilities which serve approximately 43 million Americans. This national, annual event is sponsored by the American Public Power Association in Washington, D.G. This year, Public Power week is October 3-9, and Azusa Light &Water pauses to acknowledge Azusa's ownership of its electric utility which has resulted in a significant public benefit to Azusa citizens and businesses in the form of reliable, affordable electricity. This last year, ownership of Azusa's public utility has resulted in an added benefit to the environment, as Azusa Light &Water began purchasing "renewable energy" from a wind farm located In Solan County, thereby reducing emissions of "green house" gases like carbon dioxide. Literature will be handed out to residents along with other items as part of our effort to celebrate Public Power Week; these items will be handed out from a booth during our Azusa Golden Day Celebration and we will likely raffle off a few items, like energy efficient fans. FISCAL IMPACT Costs incurred for promotional materials will amount to about $ 1,600. . Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities 117 Power Resources Division Monthly Report • Status of Projects • Power Consumption Comparison • Wholesale Market Trend • Power Resource Budget Update • Preliminary FY03-04 Light Fund Operating Result S18 Status of Projects • Finalized the Kirkwall Substation settlement agreement with Edison • Participating in California Independent System Operator(CAISO) Transmission Control Agreement(TCA) discussions • Particippating in CAISO Tariff amendment#60 settlement discussions. It implicates about$300,000/year in CAISO costs to the City • Participating in CAISO Congestion Revenue Rights (CRR)Study 2. The study has implications on how much insurance the City would receive against transmission congestion in the proposed redesign of CAISO markets • Participating in the CAISO market redesign stakeholder process • Commenced preliminary discussions with CAISO and Northern California Power Agency(NCPA) regarding a Metered Subsystem(MSS)arrangement. The MSS has the potential of insulating the Cityfrom certain of CAISO charges for City's benefit • Concluded the power resource portfolio optimization for August and September, 2004. The portfolio is spread out in resources in Southern California,from the Southwest and Southern Nevada to flexibility in hedging transmission congestions and the costs of CAISO ancillary services markets • Commenced discussions with suppliers for San Juan firming arrangements for CY 2005 • Conducting long term resource adequacy studies in anticipation of soon-to-be- imposed Resource Adequacy Requirement(RAR) in California . • Commenced planning to acquire additional renewable resources in anticipation of the accelerated renewable resource portfolio standard compliance date imposed by SB 1478 119 i � CITY OF AZUSA ENERGY CONSUMPTION COMPARISON _ ENERGY O]NSUMPl10NIN MWI3 i._ PERCENT ��. ;,� MDNTH FY 0304 t FY0.1-05 ! CW!•KE JIL _ 26.154 ...__ 25.758 SEP 24.354 .. . -.... _.-. _._ ... _-.. T.. NOV .- -. 19.394 ....-_..... ._ _. _ _ _�.-.. _. .... _1. -..._. . . .. _ ,_.._-_.._-.._49.297—_............ . .JAN. . I 19.911 ._._.FEB .. ... 1._. MAR i 2 APR -. 1,.338 . .. . ... .... ... . .... ._!. .. .. _ ......_. _ �- _.. .. ... _ . _- MAY .. ......e'.._ ... . 22.493 .__.. JLN 22,505 ' TOTPL I. 265718 1 51059 340°/., CITY OF A2USA PEAK DEMAND COMPARISON PERCENT_ MOMH —FY D3-04 �FY04: t CHANGE NIA. 55.7 56.4 I 1.22% ------- —.-_--.---.SEP_,..____'-_.._..._...59_1 —_,.__ _-....-..._..... .............._.._ OCT -....- 532 368 _.._ _. ... .. . _. JAN ... _. 346 .._. FEB -. . ._ 357 —....._ ---- --------. -_.- MAR.'- 439..__ 53.6_..-__ .__.�_.�.._—'•.... _. ....- -_._..._ .....-...... 56.3 ! JIAN 47.4 ( -- PEAK DEMAND N MW j .-,__._..- __.. . f 'Surpassing all-time,hlgh for peak of 58.1 MW established on September 1 1998. 120 t 7 } Aidi,u' WHOLESALE ELECTRICITY SPOT MARKET PRICES IN CALIFORNIA AVERAGE_ AVERAGE _ -MOUTH ON PEAK PRICE OFF PEAK PRICE I JUL 03 $59.69 1 $39.84 _AUG 03. _._ .____..._.._.. $51.02 . .. $36.87 1..._-.�.._SEP03----- _...._------x...... .._----._.�....---.._.-. $33.75._.....___... CCT03 . ._. - .. .__.... $45.17... $30.22 ._ NOV03 __.$3697__...... $29.36. . DEC 03... _ __. ._ .. .__$43:77..___. _.__. ...$33.39 i.__. ...._FES O4.. ...._ ._ ._ _.._.__$42.75___.__..._ MAR 04 _ $41.22 $31:65 APR04 _. . .I $45.77 _.. ..__. $34.06 MAY04 $5126_ _ $37.31 _ JUN 04 __ . ( .. . .$50.76. _. $32.32 I JUL04 $59.12__..._ $38.94 AUG 04 $51-50 _. $36.23 ;ALLPRICESINWAAIH _.�_._._...... ._. .._..�..__ . ... __ 121 f Power Resource Cost Accounting ti FY '03-'04 s �(s) f6) MCNM1I�CDNLFI7CTS P R�g1ASES ION SE_._. OBP TCMNGCC6TS COSTS R IJ�E .CC6TS.- 98529403'_ _..._2244 "7 20193828 20000,00 264b16,3( 3,978,10001 (1,786,42625) h+9110 N3.6725 173612 05 201,93&28 2000D.00 - 2816043 --2,929,68309 - (1$5164360]--- 1,376,03958 Q1� _, 3 000 0.00 0.00 090 _..-NwOd ...._... —. .._._... .. _.._. __--___........ ___ — '^.._. . ._.. .. .—._ .......—_ 000 090 —..-0am ....FaP05 ................ ... ..}_.__._... _.,._.._. __._ ___. _.. ....__.__ - .�.- _____ 000 _................ .00.. Elm0.00 �W 090 ----a0_00 .__._...._ . ---- ._--- __ _._.. ___ _____....___ .—._.___ _. _._..___.. .OW _____. __ ._....._.__-_..-_6.06 TOTAL 51,928.96655: 33982551.12 5403,87656 540,00000 55258886 5640796309 (53,33786975) 53,070113.39 _..___— _ --------- _ .. ... . ..._..___..__—. _..__..__. INCLUDES SCPPALONC TERMCONTRPCB INCLUDESAILSHOfiTTERMPUR SHASEC�PoRHED WrDLOIDBA_PONGPURP S ._ -- L - 131 INCLUDES N_LSHCRTTERMM9 LCNGTRrWSMSSICN CCNTRnCf CCBTS_I_ _ (4) COSTS CHARGED BY C<LJFCRNIAINDEPENDENTSYSTFh1OPERATOfi F'OR SYSTEM RF110BILT'RJNCRONS _ F (5) INCLUDES COSTS fOR SCHEDUIJNG DAV DISPATCHING OF�ELECTWCftt ._ ,.. .. '.. (7) VAI0.ESALE gEVENUES DERIVED FRTryQ-3SN.ESOF EJCE55 PCM�EA PTOBMERTS DIFFERENCE OF(6)PNDI7) 122 Legislative & Regulatory Update Prepared by Bob Tang September 27, 2004 1 123 v. SB 1478 (Sher) — Renewable Portfolio Standard • Mandates 20% of retail electricity sold to come from eligible renewable resources by December 31, 2010 • Municipal utilities are required to report on an annual basis to California Energy Commission the following information (a) expenditures of public goods funds toward renewable energy resource development, and (b) the resource mix used to serve its customers by fuel type including the renewables • Municipal utilities are further required to establish a long term resource plan approved by theirgoverning bodies to achieve 20% renewable procurement by December 31 2010 that is functionally equivalent to the mandate to the fnvestor Owned Utilities • The bill cleared both the Assembly and Senate, the Governor is expected to sign the bill • The Governor on September 9th 2004 A 2 124 AB 426 (Cox) Exit Fees Exemption to Greenfield Municipal Customers It SUL, • The bill would exempt the greenfield municipal al customers from paying exit fees to the Investor Owned Utilities • The bill received overwhelming support in the Senate, cleared on a vote 23-5 • The bill received strong resistance in the Assembly. committee, and would not make out of the committee • California Municipal Utilities Association (CMUA) made a strategic move to put the bill in the inactive file for the time being, and may revive the bill in the next legislative year if Assembly committee composition is more favorable to the munis after the November election • Exit fee issue remains uncertain to Greenfield municipal customers 3 125 AB 2006 (Nunez) — Electric Restructuring • The bill was heavily amended. As currently stands, it does not contain any customer choice language, and it only addresses Investor Owned Utilities resource procurement process, cost recovery issues, and streamlining of transmission projects siting issues • The bill cleared the Assembly and Senate mostly along party line • The proponents of the bill are: Southern California Edison Company, consumer groups (consumer groups switched the position once the customer choice was stripped from the bill), and union of utility workers • The opponents of the bill include: PG&E, SDG&E, merchant generators, and large commercial and industrial customers • Veto by the Governor is highly likely 4 126 SB 199 and SB 118 (Bowen) — Solar Home Bills • SB 199 would mandate both the Investor Owned Utilities (IOUs) and municipal utilities to establish programs to achieve one million homes powered by solar generation by 2017 • The bill would further mandate the utilities to raise retail rates to fund such programs • The bill did not get out of the committee late last week amid concerns about the costs of such programs • The less expensive SB 118 bill would provide rebates to customers who wish to install solar generation at their homes. The funding would come from existing funding sources and would not require additional rate increases. SB 118 also did not clear Senate Committee 5 127 CPUC Resource Adequacy Requirement (RAR) Draft Decision In late August, the California Public Utilities Commission (CPUC) issued a draft decision setting the stage to impose Resource Adequacy Requirement (RAR) on the Investor Owned Utilities (IOUs) The draft decision states that the IOUs must have sufficient resources to serve their retail loads PLUS a safety margin of 15-17% on an going forward basis The RAR will come effective June 1, 2006 The IOUs must demonstrate their compliance ONE-YEAR ahead for the summer months (May through September), with the first compliance date of September 30, 2005 for the summer 2006, and ONE-MONTH ahead for the non-summer months The RAR is currently not applicable to municipal utilities, however it is almost certain that municipal utilities wil=y voluntarily with the decision CPUC is slated to approve the decision in late September, and implementation details will be sorted out thereafter 6 128 California Refund Proceedings . On September 9th the Ninth Circuit Court of Appeals issued an Order dealing with California Attorney General s complaint that FERC erred in not ordering further refunds to California consumers due to state's energy crisis The Court sided with the Attorney General stating that FERC abused its discretion and "slept on the job" in not closely monitor the California energy market The Court remanded the case back to FERC for further proceedings to address further refund claims The period most likely to be addressed is theeriod of summer 2000 (May through September which currently IS NOT CONSIDERED AIV ELIGIBLE REFUND PERIOD It is expected that FERC will institute further refund proceedings to address this prior period. 7 129 IM AGk5A or INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE$< -K DATE: SEPTEMBER 27, 2004 v SUBJECT: FY 2003-04 4T" QUARTER WORK PLAN UPDATES RECOMMENDATION It is recommended that the Azusa Utility Board/City Council receive the attached work plan updates from Azusa Light &Water for review and comment. BACKGROUND Staff from different divisions of Azusa Light &Water provided work plan updates for the Utility Board's consideration and input. The updates cover the 4T" quarter of fiscal year 2003- 04, from April 1, 2004 to June 30, 2004. The Board may provide input or comments regarding specific projects. In the future, we will be using Microsoft Project to formulate a Gantt chart for each project. Gantt charts consist of a task listing for each project and the schedule for each task. Use of the attached project status report format will be discontinued. FISCAL IMPACT There is no fiscal impact as a result of this report. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Steven Yang, Administrative Analyst Attachment: FY 03-04 Q4.doc 132 Azusa Light & Water Work Plan Updates Report FY 2003-04 40i Quarter (4/1/04 — 6/30/04) Table of Contents Communicatio ............................................................................................................................. 1 AzusaAdvantage....................................................................................................................... 1 AzusaToday............................................................................................................................... 1 AzusaTomorrow....................................................................................................................... 2 AzusaTV Channel 55................................................................................................................ 2 TL& ......................................................................................................................................... 2 Azusa/Colton CIS Working Group.......................................................................................... 2 CIS Programming Projects....................................................................................................... 3 L&W IT Security....................................................................................................................... 3 MIS/Electric Networking Projects........................................................................................... 4 &W Administration.................................................................................................................... 4 We go the extra mile campaign (for L&W Customer Service)............................................. 4 Wireless Telecom Service Evaluation...................................................................................... 5 Work Order System Review..................................................................................................... 5 Work Plan Update Reporting System ..................................................................................... 6 &W Customer Servic .......................................................................................I........................ 7 Customer Segmentation and Recognition............................................................................... 7 DRIPProgram........................................................................................................................... 7 Field Manual and Office Desk Procedures.............................................................................. 8 Improve Customer Satisfaction................................................................................................ 8 Improve Customer Service....................................................................................................... 8 . ReduceUncollectibles................................................................................................................ 9 Water and Electric Meter Strategy.......................................................................................... 9 &W Electric Operation .......................................................................................................... 10 Owl/Hilltop Distribution Circuit Line Extensions (CIP)..................................................... 10 Pole Maintenance/Inspection Testing.........................................................................I.......... 10 &W Power Resourc ................................................................................................................ 11 CAISO related activities ......................................................................................................... 11 ContractNegotiations.............................................................................................................. 12 Financial Reporting and Disclosure....................................................................................... 12 Financial Reporting Streamlining.......................................................................................... 13 Power Resource Portfolio Optimization................................................................................ 13 Resolution of Regulatory Issues............................................................................................. 14 i 133 &W Waste Ma na emen .......................................................................................................... 15 DOC Beverage Container Recycling Program..................................................................... 15 Dumpthat Junk Month .......................................................................................................... 15 MRFProgram.......................................................................................................................... 16 Used Oil Recycling Block Grant Program............................................................................ 16 &W Water Operations............................................................................................................. 17 30-inch pipeline in Dalton from Sierra Madre to 5th........................................................... 17 Install radio controls for SCADA........................................................................................... 17 Rehabilitation of South Reservoir.......................................................................................... 17 Repairs to Sierra Madre Reservoir........................................................................................ 18 Rockvalebooster upgrade....................................................................................................... 18 Spreadingground wells........................................................................................................... 19 Well2 & 3 discharge upgrade................................................................................................ 19 ii 134 Division: ommunicatio Work Name: Azusa Advantage Description: Program consists of a weekly meeting to plan proactively strategies on marketing, publicity and synergy(with AUSD)on current events in and around Azusa. Whenever possible media opportunities are recognized and pursued for their positive portrayal of the City of Azusa,its employees,City Council,partnerships and sphere of influence. Work Type: Program Goal: Team Leader: Martin Quiroz Team Member: Ann Graf Robert Person Quarter Ending Update: The Advantage team has drafted a communications plan for the Monrovia Nursery Project. The plan will be given to the developer of the project for the purpose of providing timely communications of the project and its timetables to the residents of Azusa. Also,this quarter we enlisted the support and input from APU,the DBA and the Chamber. All three, and AUSD,are full participating member/contributors of Azusa Advantage. Year End AA is on-going and will continue into next fiscal year. Completion Date: Work Name: Azusa Today Description: Write,produce and edit a 40-minute TV show on current events and projects throughout the city of Azusa. The completed show is placed on a program schedule and aired on Azusa government channel 55. Assistant City Manager,Robert Person is the moderator and host of the show. The show is taped at the Charter facilities in Pasadena each month. Work Type: Program Goal: Team Leader: Martin Quiroz Team Member: Quarter Ending Update: Although this program has been in hiatus for the past year there is some interest in resurrecting it as an information medium and tool for the Monrovia Nursery Project. Year End This program on hiatus. Completion Date: 1 135 Work Name: Azusa Tomorrow Description: Write,photograph and lay-out the monthly Azusa newsletter which gets circulated via the Light and Water utility bills. Work Type: Program Goal: Team Leader: Martin Quiroz Team Member: Quarter Ending Update: On-going monthly newsletter that goes out to every rate payer in Azusa with their monthly utility bill. Year End On-going and will continue next fiscal year. Completion Date: Work Name: Azusa TV Channel 55 Description: I am the operations manager of Azusa's cable TV Channel 55. In this capacity I handle the day to day operational needs of the station as well as interact with Charter Communications. We produce taped and live programming on an as needed basis as well as update the stations on-air community calendar. I maintain constant communication with Charter Communications to schedule maintenance and production assistance. Work Type: Operation Goal: Managing Infrastructure for Reliability,Change, & Customer Satisfaction Team Leader: Martin Quiroz Team Member: Quarter Ending Update: We remain on the air with limited programming. We air the City Council meeting three times a day(M-Th), Azusa Uncut(from APU),various PSA,the Community Calendar and the Rivers and Mountains Conservancy meetings. Year End We remain on the air with limited programming. Completion Date: Division: T-L& Work Name: Azusa/Colton CIS Working Group Description: The Azusa/Colton CIS Wonting Group was formed in October 2002 to investigate 2 136 options for Azusa Light&Waters Customer Information System which is shared with Colton Public Utilities. The group's task is to investigate migrating the existing application to a different hardware platform or purchasing an off the shelf system. Work Type: Project Goal: Managing Infrastructure for Reliability,Change, & Customer Satisfaction Team Leader: Kevin Morningstar Team Member: Sallie Acero Ann Graf Karen Vanca Quarter Ending Update: Working Group process was completed as Customer Service Division selected Systems&Software as the new CIS vendor. Selection was approved by City Council[Utility Board at the June meeting. Year End Completion Date: 6/28/2004 Work Name: CIS Programming Projects Description: Azusa: Speedpay,Equifax CUE data exchange,Customer Assistance Programs. Colton: Online credit card acceptance,Online/web meter data access. General: Web interface for CSRs,Implementation of final PH version,Updated online/web customer pages. Work Type: Operation Goal: Managing Infrastructure for Reliability,Change,&Customer Satisfaction Team Leader: Kevin Morningstar Team Member: Margaret De Lano Quarter Ending Update: Project was not completed in the current fiscal year as planned due to other priority projects at Azusa and Year End Completion Date: Work Name: L&W IT Security Description: Install secure access to the Department's Data Center. Security system to be tied into the City's existing security system and hardware infrastructure. Review and improve cyber security to meet standards. Work Type: Project 3 137 Goal: Managing Infrastructure for Reliability,Change,& Customer Satisfaction Team Leader: Lysell Wofford Team Member: Kevin Morningstar Quarter Ending Update: Security system was installed and operational in early June. Year End Completion Date: 6/24/2004 Work Name: MIS/Electric Networking Projects Description: Substation: Network/Fiber Optic Cabling from Gladstone Yard to new Substation;building cabling infrastructure New Electric Yard: Network/Fiber Cabling from Transportation to new Electric Yard; building cabling infrastructure. Work Type: Project Goal: Managing Infrastructure for Reliability,Change,& Customer Satisfaction Team Leader: Kevin Morningstar Team Member: David Ramirez Federico Langit Quarter Ending Update: Network expansion project to Kirkwall Substation was completed in May to coincide with substation going online. Additional expansion of network services including new network equipment was installed at Gladstone Yard and the Water Treatment Plant. The project was completed by mid-June as field crews at both locations now have full telecom services via new Voice over IP phones. Additional station cabling was installed at the Treatment Plant and Joe Cvetezar is now on the network for both voice and data. Year End Completion Date: 6/24/2004 Division: &W Administratio Work Name: "We go the extra mile" campaign (for L&W Customer Service) Description: Public Relations.Marketing campaign to highlight customer service improvements and additional services to the customers of Azusa Light&Water. Work Type: Program Goal: 4 138 Team Leader: Martin Quiroz Team Member: Karen Vanca Quarter Ending Update: This program continues with monthly updates and tips on reading the utility bills each month. This quarter we saw the addition of the Concert in the Park music series at Memorial Park every Thursday at 7:00 P.M. Year End Project is on-going. Completion Date: Work Name: Wireless Telecom Service Evaluation Description: Evaluate use wireless or Wi Fi technology as a means of providing low cost internet and other services to Azusa residents and businesses. Work Type: Project Goal: Enhancing Financial Condition Team Leader: Cary Kalscheuer Team Member: Federico Langit Joe Hsu Quarter Ending Update: In light of Aiirmesh not following thru on commitments,staff performed additional research into vendors that provide equipment and/or services necessary to deploy wireless network and identified Tropos Networks as provider of wireless pole mounted routers and Pronto Networks as provider of software which may be used to manage internet service subscribers. Working directly with these sorts of vendors eliminates middlemen and could lower cost for citywide deployment compared to what RW Beck estimated in late 2003 as cost to deploy a citywide Wi Fi service offering. Periodic research and discussions amongst staff continue on these topics. Year End Completion Date: Work Name: Work Order System Review Description: Work orders are issued to have work done by field personnel. Work orders communicate what is to be done, what equipment and materials are needed to do the job, and authorize field personnel to commence work. Work orders also are used to track costs for billing and accounting purposes. This is a review of the work management process,which is largely a manual process,to see how it can be made more efficient, and possibly automated,for billing,accounting and management Work Type: Project 5 139 Goal: Managing Infrastructure for Reliability,Change, & Customer Satisfaction Team Leader: Cary Kalscheuer Team Member: Feliza Cawte Hien Vuong Dan Kjar Ann Graf Kevin Morningstar Federico Langit David Ramirez Steven Yang Joe Hsu Quarter Ending Update: Systems and Software(S&S),one of the vendors to submit a proposal to the City for the CIS system,will be considered as vendor to provide work managementlasset management system to the Utility. Discussions with S&S are expected to take place in October 2004. Year End Completion Date: Work Name: Work Plan Update Reporting System Description: Develop a work plan update reporting system that allows managers to log on and update their projects,and then allows administrative staff to printout reports for all Work Type: Project Goal: Management Excellence Team Leader: Cary Kalscheuer Team Member: Robert Person Steven Yang Quarter Ending Update: City Manager's office informed Utility staff that they want the Utility to use Microsoft Project to formulate work plan updates. City Manager's office prefers that Gantt charts be formulated for each project,showing the task listing for the project and schedule for each task. Hence,use of this system for work plan update reporting purposes is expected to be discontinued after this report. This system will likely be used by staff to gather project task listings from managers, and then we will input that data into the MS Project system to generate a report like City Management prefers. No descriptions of project status,however,or program statistics are expected to be reported through that system. Year End Completion Date: 6 140 Division: &W Customer Servic Work Name: Customer Segmentation and Recognition Description: Collect demographic and preference information about our customers so it can be entered into the City's database and allow the City to provide specialized service to Azusa residents and businesses. Also,we can target communications to specific audiences. Work Type: Program Goal: Customer Satisfaction Team Leader: Karen Vanca Team Member: Derek McFann Sallie Acero Quarter Ending Update: No change. Year End All planned action has been taken. Completion Date: 6/30/2004 Work Name: DRIP Program Description: On January 29,2003,the Utility Board authorized staff to develop a drought resistant landscape pilot rebate program to help conserve water usage. All Azusa Light& Water customers are eligible under the program for rebate funds, including residents, businesses,and schools. Residents are eligible to receive a rebate of up to 50%of the cost of landscape materials and irrigation systems,but not more than$1,500. Schools and businesses are also eligible to receive the 50%of the landscape and irrigation cost up to$15,000. Customers may only apply one time during the 12-month pilot period of this program. Work Type: Program Goal: Team Leader: Paul Reid Team Member: Quarter Ending Update: (3)Mountain Cove Residential participants @ $1,400 each and(1)more Mountain Cove residentail participant @ $1,010.27. (0)IndustriallCommercial participants. Still waiting on AUSD for(9)applications @ $135,000 total for the fiscal year. Year End 141 Project is completed. Completion Date: 6/30/2004 Work Name: Field Manual and Office Desk Procedures Description: Create a field manual and office desk procedures for consistent practices. Work Type: Project Goal: Management Excellence Team Leader: Derek McFann Karen Vanca Team Member: Sallie Acero Quarter Ending Update: Field Services and office procedures are 100%complete and stored in a computer share folder for easy access. Year End To be finalized in hard copy by the end of the fiscal year. Completion Date: 5/25/2004 Work Name: Improve Customer Satisfaction Description: Continuation of 2002-03 project to identify"premier" customers and provide them with exceptional service. Work Type: Project Goal: Customer Satisfaction Team Leader: Karen Vanca Team Member: Derek McFann Quarter Ending Update: - No additional activity. Year End While this is of ongoing interest,the improvements for this fiscal year are complete. Completion Date: 6/30/2004 Work Name: Improve Customer Service Description: Continuation of last year's project to improve customer satisfaction by benchmarking, setting performance targets,training,monitoring and giving employee feedback in 8 142 key customer contact areas. Also,improve and streamline internal communications. Work Type: Operation Goal: Management Excellence Team Leader: Karen Vanca Team Member: Derek McFann Sallie Acero Quarter Ending Update: Goals set for meter reading. Year End This is a multi-year project. All activities planned for this fiscal year are complete. Completion Date: 6/30/2004 Work Name: Reduce Uncollectibles Description: Decrease net write-offs by 12%over 2002-03 year end,resulting in$15,000 savings. Work Type: Operation Goal: Team Leader: Karen Vanca Team Member: Quarter Ending Update: Fiscal year-end writeoff was reduced by 41%,or$42,346.43 over prior fiscal year. Net writeoff to revenue was .12%compared to prior year of.23%a. Year End Exceeded goal. Completion Date: 6/30/2004 Work Name: Water and Electric Meter Strategy Description: Develop a long-term meter strategy that is cost-effective. Continue electric meter AMR pilot program for access problems and start one for water. Work Type: Project Goal: Managing Infrastructure for Reliability, Change, & Customer Satisfaction Team Leader: Karen Vanca Team Member: Derek McFann 9 143 David Ramirez Chet Anderson Quarter Ending Update: 1,092 electric residential AMR meters have been installed. Committee continues to evaluate remote connects/disconnects technology and water and electric AMR meters that can be read with the same handheld device. Year End Committee will continue next fiscal year and develop both a short and long term water and electric metering strategy and costs of the alternatives. Plans for this year have been completed with the exception of selecting a vendor for remote connects/disconnects. This is due to more vendors being identified and their products having to be tested by Azusa Electric Meter Shop. Completion Date: 6/30/2004 Division: &W Electric Operations Work Name: Owl/Hilltop Distribution Circuit Line Extensions (CIP) Description: Project Phase II. Hilltop Circuit will be routed along San Gabriel Ave from Sierra Madre north to Canyon Vista to provide a loop feed with the Owl circuit.The installation of conduit and underground structures are part of San Gabriel Avenue medium project. Work Type: Project Goal: Managing Infrastructure for Reliability,Change, & Customer Satisfaction Team Leader: David Ramirez Team Member: Dan Kjar Federico Langit Quarter Ending Update: Cabling started late May and continued thru June,with cabling and cable termination work continuing into next fiscal year. Year End Project to be completed and energized by mid October. Completion Date: Work Name: Pole Maintenance/Inspection Testing Description: Inspection,testing and treatment of power poles(wood)for structural integrity per maintenance agreement and the reinforcing of poles that are candidates for the Osmo- C-Truss(steel) or Fiber Wrap reinforcement. This proactive program helps prevent outages during storm conditions. 10 144 Work Type: Project Goal: Managing Infrastructure for Reliability,Change,&Customer Satisfaction Team Leader: David Ramirez Team Member: Dan Kjar Quarter Ending Update: Thirteen poles were replaced during this time. Year End 2,845 poles inspected to date,308 poles failed inspection, 198 poles were steel strutted, 110 poles require changing-out. About 40%of poles changed to date. Completion Date: Division: &W Power Resourc Work Name: CAISO related activities Description: To monitor and participate in CAISO related activities in market redesigns, Participating Transmission Owner(PTO)matters,amendments to the CAISO Tariffs, and pending settlement discussions in various CAISO matters. Work Type: Project Goal: Team Leader: Bob Tang Team Member: Tim Vuong Richard Torres Quarter Ending Update: The following is a list of CAISO related activities we are currently engaged in: 1. Metered Subsystem(MSS) discussions—staff has commenced preliminary discussions with the CAISO about MSS arrangements. The MSS arrangement would insulate the City from certain of CAISO charges and thus reduces our costs to the CAISO. 2. Participating in the CAISO market redesign process regarding Congestion Revenue Rights(CRR),Existing Transmission Contracts(ETC),Resource Adequacy Requirement(RAR)etc.... Completion Date: Preliminary discussion paper regarding MSS has been prepared. Further discussions with the CAISO will take in this quarter. It is anticipated that CAISO to file tariff amendments and finalize some studies by the end of this year regarding market redesign.Resources will be dedicated to review the documents and participate in the stakeholder process. 11 145 Year End Completion Date: Work Name: Contract Negotiations Description: The following contracts will need to be negotiated by the time the new substation is energized(1)Kirkwall Substation Agreement;(2)Wholesale Distribution Access Tariff —Service Agreement(WDAT-Service Agreement). Work Type: Project Goal: Team Leader: Bob Tang Team Member: Tim Vuong Richard Torres Quarter Ending Update: The Federal Energy Regulatory Commission(FERC)ruled in City's favor in rejecting the proposed Kirkwall Substation Agreement by Edison in late May.The city and Edison conducted settlement discussions on Kirkwall cost issues in the quarter.Parties reached a partial settlement,settlement agreement is under preparation.Will commence the preparation of auditing activities of Edison's Kirkwall costs. The WDAT settlement has been certified by FERC settlement judge,and currently awaiting FERC approval. Completion Date: Kirkwall settlement is expected to be completed by late September 2004. Selection of outside auditor to audit Edison's Kirkwall costs to be completed by the end of September. WDAT settlement is completed and awaiting FERC approval. Year End Completion Date: Work Name: Financial Reporting and Disclosure Description: Due to the issuance of debts by both City's electric and water utilities,the City will have an ongoing obligation to disclose fairly comprehensive sets of financial and system related information by no later than the end of each calendar year to the financial community. Work Type: Project Goal: Team Leader: Bob Tang Team Member: Tim Vuong Richard Torres 12 146 Quarter Ending Update: This activity will take place in the fourth quarter of this calendar year. Year End Completion Date: Work Name: Financial Reporting Streamlining Description: In order to provide timely and accurate financial information of the Utilities' operations, it is essential that the Utilities record and maintain accurate cost and revenue information.The information can then be used for benchmarking and financial reporting purposes. Work Type: Project Goal: Team Leader: Cary Kalscheuer Bob Tang Team Member: Quarter Ending Update: Miscellaneous revenues reporting procedure has been implemented effective July 1,2004. Will commence undertaking the following activities in the current quarter(a)commencement of the utility financial reconciliation and auditing activities for FY 03-04,(b)reconciliation and the correct booking of Kirkwall Substation costs in FY 03-04 CAFR,and(c)depreciation of Kirkwall Substation. Completion Date: Miscellaneous revenues procedure implemented(completed). Other activities are targeted to be completed by mid to the end of October 2004. Year End Completion Date: Work Name: Power Resource Portfolio Optimization Description: As the San Juan unit 3 power firming arrangement is slated to expire by March 31, 2004,the staff has begun the evaluations of options to optimize City's San Juan output consistent with the following criteria(1) exposure to spot market price risks when San Juan is not available;(2)operational feasibility in scheduling San Juan power; and(3)transmission issues associated with San Juan power delivery. Staff intends to study and recommend cost effective short term San Juan optimization arrangements for Utility Board's consideration and approval for the timeframe of April 2004 and Work Type: Project Goal: 13 147 Team Leader: Bob Tang Team Member: Tim Vuong Richard Torres Quarter Ending Update: The resource optimization planning for the months of July,August, and September have been finalized. Currently,staff is conducting resource optimization planning for the fall season(July,August,and September). This activity will continue during this quarter. Further,staff will commence the request for proposal process for San Juan resource fuming arrangement for CY 05. Completion Date: This is an ongoing activity. Fall power resource optimization will be completed by September 30,2004. San Juan.firming arrangement is expected to be finalized by the end of October 2004. Year End Completion Date: Work Name: Resolution of Regulatory Issues Description: The following regulatory issues involving the City are currently active at FERC: (1) CAISO transmission access charge methodology;(2)the soon-to-begin hearing process for Edison's Wholesale Distribution Access Tariff amendment(WDAT); (3) various regulatory dockets filed by CAISO in the past three to six months(Amendments 48 through Amendment 57);and(4)annual regulatory filings due to City's Participating Transmission Owner(PTO)status. Work Type: Project Goal: Team Leader: Bob Tang Team Member: Tim Vuong Richard Torres Quarter Ending Update: The following is a list of regulatory issues we are currently engaged in: 1. CAISO Tariff amendment#60—cost allocation of minimum load costs. The cost implication of this issue to the City is about$300,000/year. 2. CAISO Transmission Control Agreement(TCA)—amendments are in the works to acconarnodate new participants. 3. CAISO Metered Service Agreement(MSA)—CAISO will file unexecuted MSA shortly to address city's concerns about unmitigated liability issues. 14 148 Completion Date: At this time,the aforementioned FERC proceedings do not have estimated completion dates. Year End Completion Date: Division: &W Waste Mana emen Work Name: DOC Beverage Container Recycling Program Description: Purchase compartmentalized recycling containers and promote their use by schools. Aluminum cans,plastic bottles,newspaper and mixed paper are the four commodities targeted through this program. Proceeds from recovery of these commodities will go to host school. Bins will be serviced by Athens Services. Work Type: Program Goal: Demonstrate Environmental Responsibility Team Leader: Cary Kalscheuer Team Member: Quarter Ending Update: Delivery of 3 bins was delayed due to shortage of metal supply. Participation continued in fourth quarter with 16.46 tons being recovered in recyclable materials. This is the first time payments to the schools actually exceeded$1,000. Schools were paid$1,033.23 during this quarter. Three additional schools will be added to the program at the beginning of the school year in Sept 2004. Year End Completion Date: Work Name: Dump that Junk Month Description: Sponsor and promote spring cleaning activities during the month of April,including throwing away junk at curbside;cleaning alleys;towing away old cars;throwing away household hazardous waste;and cleaning out city facility offices. Work Type: Program Goal: Demonstrate Environmental Responsibility Team Leader: Cary Kalscheuer Bill Nakasone Martin Quiroz Team Member: Jeff Reed Dave Rudisel 15 149 Tina Cravens Karen Vanca Quarter Ending Update: This program was carried out in April 2004 with similar results as prior years. This year,in the rain, 1,500 residents showed up at Northrop to dump their household hazardous waste. Martin Quiroz will take the lead role in promoting Cleaner and Greener in 2005. The plant give-away had more limited success this year,and we may want to reconsider doing this activity next year. Year End This program is always a huge success. Completion Date: Work Name: MRF Program Description: Process all solid waste collected in Azusa through Athens Services Material Recovery Facility or MRF to divert 13,000 tons annually. Work Type: Program Goal: Demonstrate Environmental Responsibility Team Leader: Cary Kalscheuer Team Member: Quarter Ending Update: 4,173.81 tons were diverted via MRF processing and incineration for quarter ending June 30,2004;incineration portion was 252 tons. City will likely have to prepare Annual Report on AB 939 compliance before end of calendar year 2004,for prior calendar year,2003. Year End Completion Date: Work Name: Used Oil Recycling Block Grant Program Description: Supply used oil recycling drain pans to State Certified Used Gil Collection Centers in Azusa. Promote use of these centers by residents through advertising. Work Type: Program Goal: Demonstrate Environmental Responsibility Team Leader: Cary Kalscheuer Team Member: Steven Yang Quarter Ending Update: 2,675 gallons of used oil collected,94 used oil drain pans distributed,and no oil filter collected by the 4 16 5� participating centers doing used oil collection and 1 center doing filter collection. - Year End Completion Date: Division: &W Water Operation Work Name: 30-inch pipeline in Dalton from Sierra Madre to 5th Description: Installation of pipeline recommended by the Year 2000 Water System Master Plan Update. Work Type: Project Goal: Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project on hold.Will be partially installed in 2004-2005 Year End Completion Date: Work Name: Install radio controls for SCADA Description: Installation of radio controls for the water system SCADA control system. Work Type: Project Goal: Team Leader: Chet Anderson Team Member: Quarter Ending Update: SCADA upgrades for 2004 have been completed.Upgrades will continue through 2004-2005. Year End Completion Date: Work Name: Rehabilitation of South Reservoir Description: South Reservoir will be analyzed by a structural engineer to determine if the reservoir 17 151 is worth renovating or if it should be torn down and replaced. Work Type: Project Goal: Team Leader: Chet Anderson Team Member: Quarter Ending Update: Project on hold. Year End Completion Date: Work Name: Repairs to Sierra Madre Reservoir Description: Sierra Madre Reservoir is in need of repairs to the inside and outside of the reservoir. Work Type: Project Goal: Team Leader: Chet Anderson Team Member: Quarter Ending Update: Reservoir to be demolished following construction of Pioneer Reservoir 2005-2006. Year End Completion Date: Work Name: Rockvale booster upgrade Description: Installation of new pump and piping to enhance the performance of the Rockvale boosters. Work Type: Project Goal: Team Leader: Chet Anderson Team Member: Quarter Ending Update: Monrovia Nursery Water Plan and APU Specific plan will be submitted for review 1st quarter of 2004-2005. Scope of upgrade will be determined at the time the Plans are finalized. - 18 152 Year End Completion Date: Work Name: Spreading ground wells Description: Installation of two wells in partnership with the County to enhance the County's ability to sluice the accumulated debris from Morris and San Gabriel Dams. Work Type: Project Goal: Team Leader: Chet Anderson Team Member: Quarter Ending Update: Still trying to secure access from Pasadena. Year End Completion Date: . Work Name: Well 2 & 3 discharge upgrade Description: Installation of piping to enhance the flow out of wells 2&3. Work Type: Project Goal: Team Leader: Chet Anderson Team Member: Quarter Ending Update: Well 2 improvements scheduled for 2004-2005 Year End Completion Date: 19 153 The Power Marketing Association Online Page 1 of 4 Hon fi t E=lectric & Natural Gas Transmission Maps °3 "z r The Power Marketing Association Online E-mail us-submit The POWER REPORT. continuously updated online Thursday, Septem Energy JobSite See your me Industry Directory Taking a New Look at Municipal Utility Credit Energy catalogue Ratings (UdliPoint - Sept. 14) Synergen,Inc. Upcoming Conferences Synergen's Web-ai os 16,2004•PowerMarketers Industry Publications Enterprise Asset& News Archives... — — — Management EAM. National software suite,... International By Ken Silverstein Director, Energy Industry Analysis More Info Nowl Industry Visit Website Prices&Weather Despite upheaval in the electric and gas industries, municipal King Executive Si ICE Gas Indices by 10x utilities have been able to maintain their strong credit ratings. That reflects the inherent monopoly they have over their King Executive Ser Month Ahead Gas indices by 10x retained executive service areas as well as a willingness and legal flexibility to Gas Futures by offering clients prop ICE Power Indices by 10x raise rates when financial conditions warrant.At the same More Info Nowl ISO Prices by Nrgstream time,their governing boards are focused on providing reliable Visit Website Weather by DTN service at a low cost. Jarraff Industries, Site Services... Indeed, public utilities have shown that they are able to adapt For 25 years Jarrai Energy Library to changing times by reducing their fixed costs,setting aside been manufacturin Advertising their surplus revenues for'rainy days"and,through building and tallest mechan Contact Us their own generation,to avoid potentially costly spot markets. More Info Nowl But not all such companies have escaped the negative Visit Website e- consequences of runaway wholesale electric prices. Goo's Meanwhile,financial exposure to counter-parties has left some DG Power Systen public power companies exposed and necessitates that they Download a free cc continue to devise innovative risk management strategies. Still, Distributed Heat ar all utility types will be challenged as uncertainty remains Buyer's Guide. DG Internet Search More Info Nowt. pervasive. Visit Website Around The Web... When deregulation was starting to evolve last decade, the KEMA EIA municipals had set their retail rates at a much higher level than KEMA provides tec FERC necessary,"says Dan Aschenbach, an analyst in the municipal management cons Mapquest credit research area for Moady's Investors Service. "They sunk inspections, certific Traveloci their margins into escrow accounts or they reduced their fixed More Info Nowl Weather.com costs, or some combination thereof. If the market were to Visit Website eventually set rates,those companies would then have lower fixed cost.While deregulation has stalled, many munis are still loon of the view that something is lurking that could hit them hard" Itron is a leading to provider and critic To provide more effective credit ratings and to help investors knowledge to the e better understand their potential risks, Moody's has expanded More Info Nowl Its analytical services. Essentially, it now goes beyond Visit Website deciphering the operational and financial performances and benchmarks that data against companies within a certain peer Electrical Engine( group. It has furthermore started to evaluate the long-term Service Co.,Inc, credit rating for energy wholesalers who are demanding such Complete Substatii assessments. Maintenance, Repi and Commissionini For example, munis are required to cover their costs in the More Info Nowl http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowua/"5DZj gpjlooVTj g%2... 9/16/2004 154 The Power Marketing Association Online Page 2 or 4 current year.That means that operating revenues less Build It Global Inc operating expenses must balance or be positive.A drought in guild It Global Inc. the Northwest where many such companies rely on involved In effective hydropower could adversely affect their ability to meet management We I expenses,which is why Moody's compares and contrasts the More Info Now! performances of those companies in such a category.At the same time, it examines the cost of generating or procuring GC Energy Solutio power and the subsequerit ability to provide service to end-use GC Energy Solutio customers. Obviously,the strongest companies in each financing for all typ segment have the best credit ratings. projects.We have More Info Nowl Unlike investor-owned utilities,the Federal Energy Regulatory Commission does not regulate municipal utilities.And while Ardmore Power L they can stay out of competitive retail markets,they can't Ardmore Power Lo remain islands unto themselves.They often have to participate party logistics corn] . in the wholesale markets to buy power or to wheel power to freight managemer where it needs to go. Increasing efficiencies and productivity is More Info-LOwI paramount. Not Insulated Consider the Los Angeles Department of Water and Power: It has received the highest ratings from Moody's,which believes that its management has shown flexibility in responding to industry changes. Its operational rates are competitive when measured against those of peer companies. That,in turn, ensures that its customers remain happy and that its revenue margins remain intact. Meanwhile,the utility has enough power in reserve that it can avoid having to buy expensive power from the wholesale markets. Even though most munis have strong credit ratings,they are far from insulated against all problems. Among the factors that could change the positive outlook are an uncertain regulatory climate; consumer demand for stable rates; and the need for more experienced staff to handle complicated issues.With proposed new energy policies percolating, new laws that would favor certain fuel sources or new regulations that would serve to revise access to transmission lines could affect the operations of municipals. At the same time, if power contracts are not properly managed, companies could get burned by volatile wholesale market prices.That could force cities to drain their reserves and borrow more money, if they wanted to minimize rate increases to consumers. in other words, if the cost structure is such that power can't be sold at competitive rates,then companies would not have the margins or conceivably, customers could opt out.The Washington Public Power Supply System, a joint power agency that sells to participating cities, for instance,was charged with building five nuclear plants in the'80s based on the faulty assumptions that the power would be both necessary and economic.That didn't hold and led to the default of more than $2 billion of the WPPSS bonds,the largest municipal default in history. Lakeland, Fla.,furthermore, had invested in a state-of-the-art combined cycle plant. But when that project was delayed,the city was forced to buy replacement power from the wholesale market at much higher prices that it had expected. The result: http://powermarketers.netcontentinc.net/newsreader.asp?ppa=Skowu%5DZjgpjlooV rjg%2... 9/16/2004 The Power Marketing Association OnLine rage s or 4 a$5 million unplanned expense. Meanwhile in California, hydro plants generated 2.6 million fewer megawatt hours between March 2000 and March 2001 because stream flow was down 63 percent,according to a June 2001 Energy Information Administration report.The drought affected Seattle City Light,which didn't have sufficient cash to buffer the rising costs of purchasing replacement power. Prices shot to as high as $200 a megawatt hour and the muni therefore had to borrow $300 million to support its operations. Ratepayers saw their prices jump by 55 percent after January 2001. While their rates are still higher than what they were,Seattle's customers' rates are competitive with those of surrounding areas. The combination of a drought and high prices brought on by the California power crisis did hurt some public power companies in the Northwest.Altogether,six of the 12 downgrades in 2002 and three out of three downgrades in 2001 that Standard &Poor's made were in Washington state and Oregon. "Our lowest ratings assigned to specific municipals also reflect a high fixed cost,"says Moody's Ashenbach. "Munis do have monopoly status.They can also recover their costs and they have adaptive managements, all of which shows up in their financial ratios. But,the industry continues to evolve and it is vitally important that those companies become even more competitive." Some municipal utilities have been around a century or longer while many others have existed for more than 60 years. The clear goal is to provide reliable electric and gas service at competitive rates—to remain below the radar so as not to attract attention from a demanding public. But the external factors that have thrown their investor-owned utility counterparts for a loop could potentially do the same for the municipal sector:wholesale power prices, counterparty credit risks and a reliance on certain fuel mixes. The attention, no doubt,will remain on cost-cutting and maximizing productivity in a continued effort to adapt to a changing marketplace. ®2004, UtiliPoint International, Inc.All rights reserved.This article is protected by United States copyright and other intellectual property laws and may not be reproduced, rewritten, distributed, redisseminated,transmitted,displayed, published or broadcast, directly or indirectly,in any medium without the prior written permission of UtiliPoint International, Inc. ®Copyright 2004 NetContent,Inc.Duplication and distribution restricted. POWER REPORT Energy News Sections: Home-Employment-Weather Copyright©2002 PowerMarketers.com. All rights reserved. http://powermarketers.netcontentinc.net/newsreader.asp?ppa=8kowu%5DZj gpjlooVTj g%2... 9/16/2004 156 AZUSA INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES� — DATE: SEPTEMBER 27, 2004 SUBJECT: QUARTERLY FUEL COST ADJUSTMENT FOR SAN JUAN RESOURCE The Utility Board approved the quarterly fuel cost adjustment mechanism for San Juan resource at its July 26, 2004 meeting. The mechanism is intended to recover or credit costs associated with the replacement power costs of City's San Juan resource on a quarterly basis. This is the first quarterly fuel cost adjustment for the San Juan resource. This adjustment will encompass replacement power costs incurred for the San Juan during the period of July 1, 2004 through September 15, 2004. The adjustment will be applied for all electric bills rendered commencing October 1, 2004 through December 31 , 2004. The adjustment amount is a charge of 0.48 cents/KWh or about 4.4% of the average retail electric rate as shown in the attachment. Prepared by: Bob Tang, Assistant Director of Resource Management FCA_Q4_Ca1c.pdf 130 -J vrnr ori oo � o cono r- 00 (T O to co N °0 0 O COfH r r N {, Cl d W M 6 r CO 0 ccM r t0 (O Q v 0) O) (D O rO) r O00 O CA (A O Cn N r N (D fig r O 00 r r r VJ Cf! O)0 .-- OO '. CN 00 O CP r, C) > (O 7 CO CO N (O � rl It N co (D M0 O QOCO (h 7Q Ov 0O NrZr- N C14N Nr � M Cl) 6F � O Vi 64 75 (O (2) O ,r 'g N 00 Q O m r• O U CO OD ' CAS MMr (n Cl) Cl) N � � Oln O Lo 000 N O O O M V , N M N r 1 NEA ffl CH fA V O O N O Ui O O `O O w N C O L � O t C C U (8) U aa)i V o C V ZT U 7 3N tU n ( c O O c > j 0) m N L N ._-- (n U U W E O N c c Q > LO O Co M R Q r O r a. ELU m N W CL co CL C U) d UV) O O 11 N O E O O t: O O C O W O O �0 V coN coN t6 O O N - U) N d N j (n N a fn c6 a (U y U) d O r- N C7 N li O O a) m (u y c c (» 61s c I c E d O a m IX m c c > : n o m m (n U 3 = @ � m m O O ami Q O c x 'mO N mO 3 c c E �� ro (U- ! (6 U U (a c N c m U (c N 7 —v O -- Cn QQ ono [f] m QV7 (n U — O W (n 131 San Gabriel Basin Water Quality Authority 858 Oak Park Road,Suite 20D,Covina,California 91724 • (626)859-7777 •Fax(626)659-7786 http;//www.wga.mm September 13, 2004 RECEIVED SEP 2 2 2004 Azusa LIGHT&WATER CITY OF AZUSA Attn: City Manager 213 East Foothill Blvd. Azusa, CA 91702 RE: NOMINATION FOR WQA BOARD MEMBER AND ALTERNATE REPRESENTING CITIES WITH PRESCRIPTIVE WATER PUMPING RIGHTS Dear City Manager: The San Gabriel Basin Water Quality Authority(WQA) was established by the State Legislature(SB 1679) on February 11, 1993 to develop, finance and implement groundwater treatment programs in the San Gabriel Valley. The WQA is under the direction and leadership of a 7-member board, three members of each of the overlying municipal water districts, one from a city with prescriptive water pumping rights, one from a city without prescriptive water pumping rights, and two representing water producers in the San Gabriel Basin. As stipulated in our enabling legislation, the term of the board member and alternate representing cities with pumping rights will expire January 1, 2005. An election for this seat will take place on December 20, 2004 at 5:00 p.m. at WQA Headquarters. A city is not limited to nominating its own council members and may vote in the election whether or not it nominated a candidate. Listed below are cities from which city council members are eligible: CITIES WITH PRESCRIPTIVE WATER PUMPING RIGHTS Alhambra Arcadia Azusa Covina EI Monte Glendora Industry Irwindale Monterey Park Monrovia South Pasadena Whittier ✓' / ���� A MANNPIG,Chaim,an Ir BYERRUM, ,ke Chai=. • BOB G.KUHN,Treasurer MARGARET CLARK,Board Member • CAROL MONTANO,Board Member CREG ORDBAK,Board Member • MICHAEL WHITE1iFAD,Board Member Please find enclosed a"Call for Nomination" form, sample resolution, and a copy of SB 1679. Please read through the enclosures and forward copies to your council members. We will accept nominations made only by resolution from September 21, 2004 through October 21, 2004 at 5:00 p.m. To ensure that we receive your nominations we ask that the resolution be sent by certified mail or hand delivered to our office. Nominations arriving before or after the nomination period will not be accepted. After nominations are collected, a list of candidates will be sent to the cities no later than November 5, 2004. If I can be of any assistance,please contact me at the phone number or email address listed below. Sincere , i Ste .e oreno Administrative/IS Assistant SAN GABRIEL BASIN WATER QUALITY AUTHORTI-Y 858 Oak Park Road, Suite 200 Covina, CA 91724 (626) 859-7777 SteyhanieOwoa.com Enclosures i CALL FOR NOMINATIONS FOR ELECTION OF CITY MEMBER AND ALTERNATE FROM CITIES WITH PUMPING RIGHTS TO THE BOARD OF THE SAN GABRIEL BASIN WATER QUALITY AUTHORITY PURSUANT TO SB 1679 CITY: AZUSA TO THE CITY COUNCIL: The ELECTION OF the city member and alternate of the Board of the San Gabriel Basin Water Quality Authority ("the Authority') from cities with pumping rights will take place at the regularly scheduled meeting of the Board of the Authority set for December 20, 2004 at 5:00 p.m., at 858 Oak Park Road, Suite 200, Covina, California. Nominations for candidates for a city member elected by cities with pumping rights may be made by any city with pumping rights. Each city may nominate only one candidate. The member and alternate shall be City Council members or Mayors from cities with pumping rights. An alternate member acts in the place, and performs all the duties, of the city member selected by the same cities if that city member is absent from a meeting of the Authority or has vacated his or her office until the vacancy is filled pursuant to the provisions of SB 1679. No person who, directly or indirectly, at the time of election, receives, or during the two- year period immediately preceding election received, 10 percent or more of his or her income , from any person or public entity subject to regulation by, or that received grants from or contracts for work with, the Authority may serve as a member of the Authority. Your city may nominate one candidate by resolution of the City Council. Your nomination must be submitted to the Authority at least 60 but not more than 90 days preceding the meeting at which the election is to be held. (SAMPLE RESOLUTION) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF , CALIFORNIA NOMINATING COUNCILMEMBER TO REPRESENT CITIES WITH PRESCRIPTIVE WATER PUMPING RIGHTS ON THE BOARD OF THE SAN GABRIEL BASIN WATER QUALITY AUTHORITY WHEREAS, on September 22, 1992, Senate Bill 1679 was signed into law by Governor Pete Wilson authorizing the creation of the San Gabriel Basin Water Quality Authority; and WHEREAS, the Board of the San Gabriel Basin Water Quality Authority is composed of seven members with three appointed members from each of the three municipal water districts, one elected city council person from cities in the San Gabriel Basin with prescriptive water pumping rights, one elected city council person from cities in the San Gabriel Basin without prescriptive water pumping rights, and two members representing water producers in the San Gabriel Basin and; WHEREAS, the City of is one of the cities in the San Gabriel Basin with prescriptive water pumping rights; WHEREAS, the City of may nominate a representative by resolution from September 21, 2004 through October 21, 2004. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIFORNIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of nominates Councihnember as the representative for cities in the San Gabriel Basin with prescriptive water pumping rights. PASSED,APPROVED AND ADOPTED this day of 200_ CITIES WITH PUMPING RIGHTS 2000 # of city Population Votes Alhambra 85,804 9 Arcadia 53,054 5 Azusa 44,712 4 Covina 46,837 5 El Monte 115,965 12 Glendora 49,415 5 Industry 777 1 Irwindale 1;446 1 Monrovia 36,929 4 Monterey Park 60,051 6 South Pasadena 24,292 2 Whittier 83,680 8 TOTAL VOTES: 62 (2000 U.S. Census Figures) Senate Bill No. 1679 CHAPTER 776 An act.to create, and to repeal the act creating, the San Gabriel Basin Water Quality Authority, relating to water. [Approved by Governor September 19,1992 Filed with Secretary of State September 21, 1992.] LEGiSLAT1VE COUNSEL'S DIGEST SB 1679, Russell. San Gabriel Basin Water Quality Authority. (1) Under existing law, various agencies provide for the management of water in prescribed districts. This bill would enact the San Gabriel Basin Water Quality Authority Act to create the San Gabriel Basin Water Quality Authority. The bill would prescribe the organization; boundaries, management,powers,duties,and financing of the authority.The bill would require the authority to be administered by a 5-member governing body (mown as the San Gabriel Basin Water Quality Authority Board. The bill would require the Los Angeles Regional Water Quality Control Board to report to the Legislature on the progress of the authority, as prescribed. The bill would impose a state-mandated local program by imposing various duties on local entities. The bill would make these provisions, except for the report requirement,inoperative on the occurrence of 2 prescribed events. With a certain exception,the bill's provisions would be repealed on January 1, 1998,unless a later enacted statute extends or repeals that date. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates which do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that,if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to those statutory procedures and, if the statewide cost does not .exceed $1,000,000, shall be made from the State Mandates Claims Fund. The people of the State of California do enact as follows. SECTION 1. This act shall be known and may be cited as the San Gabriel Basin Water Quality Authority Act. 89 100 Article 1. General Provisions to clean.up the Main San Gabriel Basin, which include all of the following: Sec. 101. The Legislature hereby finds and declares all of the (1) Characterization of basin contamination. following: (2) Development end implementation of a comprehensive basin (a) Groundwater in the San Gabriel Valley in-Los Angeles County cleanup plan. , is seriously contaminated with hazardous substances. (3). A plan for financing the design, construction, operation, and (b) The contamination is deep and widespread, with maintenance of groundwater cleanup facilities. approximately 70 out of 275 wells contaminated in. excess of (4), Provision for a public information program. r various (5) Coordination with federal, state, and local entities. maximum contaminant levels or state action levels fo volatile organic compounds and nitrates. (h) The Legislature intends that the watermaster, the joint (c) The groundwater in the Main San Gabriel Basin is the primary powers authority, and the San Gabriel Basin Water Quality Authority,as the successor to the Joint powers authority,continue to source of drinking water for over 1,000,000 residents of the San Gabriel Valley. coordinate their respective groundwater management (d) Strong and consistent local management of San Gabriel Valley responsibilities and meet periodically to review, evaluate, and modify, as needed, the division of responsibilities for managing groundwater cleanup is needed to protect and enhance water quality,ensure protection of the beneficial uses of the groundwater, groundwater cleanup in the basin. and promote and foster the cleanup.of this valuable resource. Sec. 102 It is the intent of the Legislature in enacting this act: (e) There is no existing local entity which has all of the necessary (a) To create the San Gabriel Basin Water Quality Authority to authority and Jurisdiction to carry out the financial and institutional protect the public health and safety lanning and financing by p arrangements necessary to coordinate an effective cleanup program. groundwater extractibn and treatment projects to be carried out by '(f) (1) The watermaster for the Main San Gabriel. Basin was. the autho cial u the Main San Gabriel Basin,to provide potable water appointed by the Superior Court in and for the County of Los for beneficial uses in the basin, and to contribute to l the basinwide Angeles, pursuant to a judgment entered upon the stipulation of all remedial objectives the Sari G by state and federal agencies. of the parties with water rights in the Main San Gabriel Basin, to (b) crateTo-enwith the the San Gabriel Basin Water Quality Authority regulate the extraction and replenishment activities in that basin. to cooperate with the State Water Resources Control Board,the Los Nothing in this act is intended to expand the authority granted to the Angeles Regional Water Quality Control Board, the State watermaster in the judgment. Department of Health Services, the United States Environmental (2) The w8termaster has developed a program for the Protection Agency, the Metropolitan Water District of Southern management of the Main San Gabriel Basin,which includes all of the California, the Main San Gabriel Basin Watermaster, and other following: appropriate agencies,in carrying out the requirements and purposes (A) Regulation of water rights. of this act. (B) Imposition of an annual safe yield for the basin. (c) That the cleanup of contaminated groundwater authorized by (C) Development of a plan for the importation of water into the this act be undertaken so as to do both of the following: Main San Gabriel Basin for the purpose of replenishment,including (1) Prevent or minimize, to the extent feasible, the migration of a plan to accomplish the long-term conjunctive use of thebasins contaminated groundwater from the Main San Gabriel Basin into the groundwater storage capacity. Central and West Water Basins. (D) Regulation of groundwater production. (2) Use reasonable,technically sound,and cost-effective measures (E) Implementation of. procedures for compliance with water to ensure that groundwater extracted from the Main San Gabriel supply requirements relating to the lower San Gabriel Basin. Basin will meet applicable regulatory standards for the beneficial (F) Regulation of groundwater pumping activities for purposes of uses of the water. water quality protection. (d) That,because of the pervasive nature and multiple sources of (G) Monitoring groundwater quality and collection of contamination in the San Gabriel Valley, appropriate credit should groundwater quality data. be given for the amount of prior groundwater investigation and (H) Preparation of an annual five-year water quality and supply remediation expenditures by any responsible party when plan. determining the amount of costs recoverable from that party. (I) Coordination of activities with the joint powers authority. (e) That,if the costs of any removal or remedial action project are (g) The joint powers authority has developed cleanup programs increased as a result of conjunctive use,those increased costs shall not be costs recoverable from responsible parties. 89 1m 89 loo Ch. 776 —6— -7— Ch. 776 Thence south 29 degrees west to the intersection with the Thence north 64 degrees 30 minutes east to the intersection with northerly prolongation of the west line of Section 20, Township 2 the west line of Section 23, Township 1 North, Range 11 West; South, Range 10 West; Thence north along the west line of Section 23 to the northwest Thence south along the northerly prolongation of the west line of corner of the section,the point being the southwest comer of Section Section 20 and continuing south along the west line of Section 20 to 14, Township 1 North, Range 11 West and the point being also the the southwest comer of Section 20; point of beginning. Thence south a distance of 2,000 feet, Article 3. Definitions Thence west a distance. of two miles, more or less, to the 1West, er tion with the east line of Section 26,Township 2 South,Range 1 e Sec.301. Unless the context otherwise requires,the definitions in Thence north along the east line of Section 26 and continuing this article govern the construction of this act. north along the east line of Section 23,Township 2 South, Range 11 Sec.302. `Authority"means the San Gabriel Basin Water Quality West to the northeast comer of Section 23; Authority. Thence west along the north line of Section 23 to the northwest Sec. 303. "Board" means the San Gabriel Basin Water Quality corner of the section, the point being also the southeast corner of Authority Board, which is the governing body of the authority. Section 15, Township 2 South, Range 11 West; Sec.304. "Board member"or"member"means a member of the Thence north and west along the east and north lines,respectively, board. . of Section 15, Township 2 South, Range 11 West, to the northwest (a) "Alternate member" or "alternate" means the nominee comer of the section; receiving the second highest number of votes in an election of a city Thence west along the westerly prolongation of the north line of member or the person appointed by a water district to act in the Section 15,Township 2 South,Range 11 West to the intersection with place of a member if that member is absent or the member has a line parallel to,and one mile east of,the west line of Range 11 West; vacated the office. Thence north along the parallel line to the intersection with the (b) City member" means a member elected by the cities with northerly boundary of the City of Pico Rivera as that city existed on pumping rights or the cities without pumping rights. July 17, 1970; (c) "Water district member"means a member appointed by one Thence west along that city boundary to the intersection with the of the water districts. east line of Range 12 West; Sec. 305. "City"means a city which partially or entirely overlies Thence north along the east line of Range 12 West to the north line the Main San Gabriel Basin or a city which has, or may acquire,the of Township 2 South; right to pump water from the basin. Thence west along the north line of Township 2 South to the (a) "Cities with pumping rights" means cities which have „,.. intersection with the southerly prolongation of the east line of the pumping rights in the basin in accordance with the judgment and west half of Section 26, Township 1 South, Range 12 West; includes the Cities of Alhambra, Arcadia,Azusa, Covina, El Monte, Thence north along the southerly prolongation of the east line of Glendora,Industry,Irwindale,La Verne,Monrovia,Monterey Park, the west half of Section 26 to the southeast corner of the west half; South Pasadena, and Whittier. Thence west along the south line of Sections 26, 27, and 28, (b) 'Cities without pumping rights" means cities which do not Township 1 South,Range 12 West to the southeast comer of Section have pumping rights in the basin in accordance with the judgment 29, Township 1 South, Range 12 West, and includes the Cities of Baldwin Park, Bradbury, Duarte, La Thence north along the east line of Section 29 to the northeast Puente, Rosemead, San Dimas, San Gabriel,, San Marino, Sierra corner of the south half of Section 29; Madre, South El Monte,Temple City, and West Covina. Thence west along the north line along the south half of Section Sec.306. "Groundwater"means water beneath the surface of the 29 to the northwest comer of the section; ground and within the zone of saturation. Thence north along the west line of Sections 29, 20, 17, and 8, Sec. 307. "Groundwater basin" means an interconnected and Township 1 South, Range 12 West, permeable geologic formation capable of storing and yielding Thence north along the northerly prolongation of the west line of substantial groundwater supply. Section 8,Township 1 South,Range 12 West to the intersection with Sec. 308. "Joint powers authority" means the entity formed, 'the north line of Township 1 south; pursuant to the"Joint Exercise of Powers Agreement Creating Main Thence east along the north line of Township 1 south to the San Gabriel Basin Water Quality Authority,"dated July 27, 1990, by northeast comer of Section 3, Township 1 South, Range 12 West; and among the Upper San Gabriel Valley Municipal Water District, Thence south along the west line of Section 8 and continuing south Article 2. Creation and Boundaries along the west line of Section 17 to the southwest corner of Section 17, the corner being also the northwest comer of Section 20; Sec. 201. The San Gabriel Basin Water Quality Authority is Thence east along the north line of Sections 20 and 21 to the hereby created. northwest comer of Section 22, the comer being also the southwest Sec. 202. The boundaries of the authority are as follows: comer of Section 15; Beginning at the southwest corner of Section 14, Township 1 Theme north along the west line of Section 15 to the northwest North, Range 11 West, San Bernardino Base and Meridian; corner of the south half of Section 15; Thence north along the west line of Section 14 to the northwest Thence east along the north line of the south half of Section 15 to corner of the south half of Section 14; the northeast corner of the south half of Section 15; Thence east along the north line of the south half of Section 14 to Thence south along the east line of Section 15 and continuing south the east line of Section 14; along the east line of Section 22 to the southeast comer of Section 22, Thence north along the east line of Section 14 and continuing the point being also the southwest corner of Section 23; north along the east line of Section 11 to the northeast corner of Thence east along the south line of Sections 23 and 24 to the east Section 11; line of the west half of Section 24; Thence east along the north line of Section 12 to the northeast Thence north along the east line of the west half of Section 24 to corner of Section 12; the north line of the section; Thence south along the east line of Section 12 and continuing south Thence east along the north line of Section 24 to the northeast along the east line of Section 13 to the southeast comer of Section 13, corner of the section, the point also being the northwest comer of the corner being also the southwest corner of Section 18,Township Section 19, Township 1 North, Range 8 West; 1 North, Range 10 West; Thence east along the north line of Sections 19 and 20,Township Thence east'along the south line of Sections 18, 17, 16, and 15, 19, 1 North, Range 8 West to the northeast corner of Section 20; Township 1 North,Range 10 West to the southwest corner of Section Thence south along the east line of Sections 20, 19, and 32, Township 1 North, Range 8 West to the southeast comer of Section Thence north along the west line of Section 14 to the northwest 32; corner of the south half of Section 14; Thence west along the south line of Section 32 to the northwest Thence east along the north line of the south half of Section 14 to corner of the east half of Section 5,Township 1 South,Range 8 West; the east line of the section; Thence south along the west line of the east half of Section 5 of the Thence north along the east line of Section 14, and continuing south line of Section 5;' north along the west line of Section 12 to the north line of Section 12; Thence west to the east line of the northerly prolongation of Range the 9 West; Thence, along line of Section 12, to the northeast Thence south 67 at 30 he utes west to ecrsection with cornerof Sec on 1he corner being also the southwest come, of the northerly prolongation of the line of Section 27,Township Section 6, Township 1 North, Range 9 West; 1 South, Range 9 West; Thence north along the west line of Section 6 and continuing north Thence south along the northerly prolongation of the west line of along the west line of Sections 31 and 30,Township 2 North,Range Section 27 and continuing south along the west line of Section 27 to 9 West to the westerly prolongation of the north line of Section 30; the southwest corner of Section 27,the point being also the southeast Thence, east along the westerly prolongation of the north line of corner of Section 28; Section 30 and continuing east along the north line of Section 29 to Thence west along the south line and westerly prolongation of the the northeast corner of Section 29; south line of Section 28 to the northerly prolongation of the west line Thence south along the east line of Section 29 and continuing south of Range 9 West; along the east line of Section 32, Township 2 North, Range 9 West, Thence south along the prolongation of the west line of Range 9 and thence continuing south along the east line of Section 5, West to the westerly prolongation of the north line of Township 2 Township 1 North, Range 9 West to the southeast corner of Section South; 5, Thence west along the westerly prolongation of the north line of Thence west along the south line of Section 5 to the southwest Township 2 South, a distance of 8,500 feet; corer of Section 5, the point being also the northwest corner of Thence south a distance of 4500 feet, Section 8; Thence west a distance of 10,700 feet; 89 170 89 190 the San Gabriel Valley Municipal Water District, and the Three (b) Make and enter into contracts. Valleys Municipal Water District. (c) Sue and be sued in its own name and,to the extent authorized Sec. 309. "Judgment" means the judgment, as amended or as it by Section 407, bring suits to recover,from responsible parties, the may be amended,of the Superior Court in and for the County of Los removal and remedial action costs incurred by the authority. Angeles in Upper San Gabriel Valley Municipal Water District v. (d) Adopt a seal and alter it at pleasure. City of Alhambra (Case Number 924128). (e) Acquire, construct, manage, maintain, and operate any Sec. 310. "Main San Gabriel Basin" or "basin" means the buildings, works, or improvements, both inside and outside the groundwater basin underlying the land within the boundaries of the boundaries of the authority. authority. (f) Acquire, own, hold, or dispose of property both inside and Sec. 311. "Produce" means to pump water from the basin. outside the boundaries of the authority. Sec. 312. "Producer" means a person or entity that produces (g) Incur debts, liabilities, and obligations. water. (h) Issue bonds, notes, and warrants and other evidence of Sec. 313. "Public water system" means any entity that operates indebtedness and enter into leases, installment sales contracts, and a public water system,as defined in subdivision (f) of Section 4010.1 other agreements to finance costs and expenses incidental to the of the Health and Safety Code. projects of the authority. Sec. 314. "Pumping right assessment" means an assessment on (i) Enter into agreements with the watermaster and other prescriptive pumping rights levied by the authority upon the holder appropriate entities to do any of the following: of a prescriptive pumping right,as determined under the judgment. (1) Store water in the basin. Sec. 315. "Water district" means the San Gabriel Valley (2) Purchase and import water for the benefit of the authority. Municipal Water District, the Upper San Gabriel Valley Municipal (3) Exchange water. Water District, or the Three Valleys Municipal Water District. (4) Distribute water to producers in exchange for ceasing or Sec. 316. "Watermaster" means the watermaster appointed to reducing groundwater extraction. administer the judgment. (5) Regulate pumping in accordance with the judgment. 0) Own and operate facilities to extract, purify, and treat water Article 4. Powers and Purposes for the beneficial use of persons or property within the authority. (k) Acquire,within or outside the authority and within the state, Sec. 401. The authority may do any of the following: by purchase, condemnation, or other legal means, all property, or (a) Coordinate groundwater remediation planning and rights in property, that the authority determines to be necessary or implementation activities among the water districts, the producers, proper for the purposes of the authority, except that the authority and the authority. shall not exercise the power of eminent domain as to water, water (b) Control and remove hazardous substances from the basin. rights,reservoirs,pipelines,water distribution systems,waterworks, (c) Construct, operate, and maintain water treatment facilities or powerplants that are devoted to beneficial or public use.Eminent which benefit the basin. domain proceedings may be brought by the authority for these (d) Receive and expend funds obtained from all of the following purposes pursuant to Title 7 (commencing with Section 1230.010) of sources: Part 3 of the Code of Civil Procedure. (1) Federal, state, or local governments. (1) Act jointly or cooperate, within or outside the boundaries of (2) Nongovernmental entities. the authority, with the United States, the state, a county, city, or (3) The proceeds from the issuance of bonds,notes,warrants,and district, the watermaster,or any corporation, or person to carry out other indebtedness to finance treatment projects which benefit the this act. basin. (m) Carry on technical and other investigations of all kinds (4) Pumping right assessments. necessary to carry out the purposes of this act. Sec. 402. The authority may undertake projects which relate to, (n) Levy pumping right assessments and impose charges for the but are not limited to,efforts to correct water quality problems due sale of groundwater extracted and treated by the authority to pay for to volatile organic compounds, nitrates, and mineral salts. These the administrative costs of the authority,to pay for the operation and projects shall be undertaken pursuant to, and shall be consistent maintenance costs of facilities including reasonable reserves for with, the basinwide plan adopted under Section 406. operation and maintenance costs, to repay warrants, notes, bonds, Sec. 403. The authority may do any of the following: and other evidence of indebtedness,to make payments pursuant to (a) Employ agents and employees. leases or installment sale agreements in connection with certificates 89 260 89 290 of participation, and to make payments pursuant to any other (b) Persons or entities responsible for the contamination of the financial obligations. Pumping right assessments may be levied on, basin shall cooperate with the authority in developing and and are payable by, public agency holders of prescriptive rights implementing plans for the cleanup of the contamination. under the judgment. (c) To the extent authorized under Section 107 of the (o) Issue bonds, notes, warrants,other evidence of indebtedness Comprehensive . Environmental Response, Compensation, and or certificates of participation in contracts payable from the levy of Liability Act of 1980,as amended (42 U.S.C. Sec. 96(Y7), or Chapter pumping right assessments,the imposition of charges for the sale of 6.8 (commencing with Section 25300) of Division 20 of the Health groundwater extracted and treated by the authority, or with any and Safety Code, the authority may pursue legal action against other revenues legally available to the authority. persons or entities that are responsible for the contamination of the Sec: 404. No power granted to the authority expands, limits, basin to recover removal or remedial action costs incurred by the supersedes, or otherwise impairs any authority granted to the authority for the cleanup of the contamination attributable to that watermaster under the judgment, except that any plan adopted by person or entity, including the costs of enforcement and litigation. the authority pursuant to Section 401 or 406 is, for purposes of the Judgment, a basin cleanup plan adopted by a public governmental Article 5. Organization agency with responsibility for groundwater management or cleanup. Any project undertaken by the authority which involves the Sec. 501. The authority shall be governed by the board. The pumping of groundwater from the basin is subject to regulation in powers and duties of the authority shall be exercised by and through accordance with the judgment. the board Sec.405. The authority may contract with appropriate entities to Sec. 502. (a) The board shall be composed of five members, carry out the purposes of the act and the rules and regulations three of whom are appointed by the water districts and two of whom adopted pursuant to this act. are elected by the cities. Sec. 406. (a) The authority shall develop and adopt a basinwide (b) No person who,directly or indirectly, at the time of election groundwater quality management and remediation plan. The or appointment, receives, or during the two-year period authority shall cooperate with all appropriate entities for that immediately preceding election or appointment received, 10 purpose. The plan shall include, but not be limited to, all of the percent or more of his or her income from any person or public following components: entity subject to regulation by, or that receives grants from or (1) Characterization of basin contamination. contracts for work with, the authority may serve as a member of the (2) Development and implementation of a comprehensive basin authority. cleanup plan. Sec.503. The water district members and their alternates shall be (3) A plan for financing the design, construction, operation,and appointed as follows: maintenance of groundwater cleanup facilities. (a) One member and one alternate shall be appointed by the (4) Provision for a public information and participation program. Board of Directors of the Upper San Gabriel Valley Municipal Water (5) Coordination with federal, state, and local entities. District. The member and alternate appointed pursuant to this (b) The basin-wide plan,shall be consistent with the National subdivision shall be elected members of that board and shall be Contingency Plan and with any applicable records of decision issued appointed by resolution adopted by a majority of that board. by the United States. Environmental Protection Agency, all (b) One member and one alternate shall be appointed by the requirements of the Los Angeles Regional Water Quality Control Board of Directors of the San Gabriel Valley Municipal Water Board, including that board's Basin Plan, and all applicable District. The member and alternate appointed pursuant to this agreements between federal, state, and local agencies engaged in subdivision shall be elected members of that board and shall be cleanup activities. The basinwide plan shall consider the benefits to appointed by resolution adopted by a majority of that board. be achieved by the plan or any proposed project in relation to its (c) One member and one alternate shall be appointed by the economic impact on persons or entities within the boundaries of the Board of Directors of the Three Valleys Municipal Water District. authority. The member and alternate appointed pursuant to this subdivision Sec.407. (a) The authority may cooperate with the Los Angeles shall be elected members of that board and shall be appointed by Regional Water Quality Control Board and the United States resolution adopted by a majority of that board. Environmental Protection Agency in their investigation and Sea 504. The city members and their alternates shall be elected identification of persons or entities that are responsible for the as follows: contamination of the basin, (a) One member and one alternate shall be elected by the cities 89 310 89 330 with pumping rights.The member and alternate elected pursuant to receiving the highest number of votes, is the alternate member. this subdivision shall be city council members from cities with (2) The candidate receiving the highest number of votes cast by pumping rights. cities without pumping rights shall be elected to fill the office (b) One member and one alternate shall be elected by the cities representing cities without pumping rights.The candidate receiving without pumping rights. The member and alternate elected the next highest number of votes cast by cities without pumping pursuant to this subdivision shall be city council members from cities rights, who is not a city council member from the same city as the candidate receiving the highest number of votes, is the alternate without pumping rights. member. embers elected b the cities pursuant to Sec. 505. Each of them Y P veers authority shall March 1 1993 the o ty Section 509 shall be elected according to the following procedure: (g) Not later than J P (a) A city with pumping rights may vote for candidates to be call and conduct the election to elect the initial city members and elected to represent cities with purnping rights. A city without alternates. Thereafter, the election of city members shall be called pumping rights may vote for candidates to be elected to represent and conducted by the authority. cities without pumping rights.The number of votes which a city may Sec.506. An alternate member shall act in the place,and perform all cast is determined by the population of the city. Each city has one the duties, of the city member ri water district member vote for each 10,000 residents or majority fraction thereof, as selected ed by the same cities water district that city member or determined by the most recent United States decennial census data. water district member is absent nt from a meeting of the authority or The number of votes to which a city is entitled shall be computed by has vacated his or her office until the vacancy is filled pursuant to this rounding the population of the city to the nearest 10,000 and dividing act. that number by 10,000. Each city has a minimum of one vote. Sec.507. (a) Except as provided in subdivision (b),the terms of (b) An election for a city member shall be conducted at the the members shall commence on the first Monday in January and board's final regular meeting of the calendar year preceding the each member shall hold office for a term of four years and until the expiration of the term of the office of that city member. successor takes office. (c) Nominations for candidates for a city member elected by cities (b) With respect to the initial board members, the terms of the with pumping rights may be made by any city with pumping rights. member appointed by the Three Valleys Municipal Water District Nominations for candidates for a city member elected by cities and the member elected by the cities without pumping rights shall without pumping rights may be made by any city without pumping expire on January 1, 1995,and the terms of the remaining members rights. Each city may nominate only one candidate for each office. shall expire on January 1, 1997. Nomination shall be made by resolution of the city council of the Sec.508. Any vacancy in the office of a member shall be filled as nominating city. All nominations shall be submitted to the authority follows: at least 60, but not more than 90, days preceding the meeting at (a) A vacancy in the office of a member or alternate who was which the election is to be held. appointed by a water district shall be filled by the appointing water (d) The authority shall adopt procedures for preparing and district by a resolution adopted by a majority vote of the district distributing ballots to each city eligible to vote in the.election.Ballots governing board.The person appointed to fill the vacancy shall meet the qualifications applicable to the vacant office and shall serve for shall be distributed to all cities which are eligible to vote at least 45 days prior to the meeting at which the election is to be held. Each the remaining term of the vacant office. ballot shall indicate the number of votes which the city is entitled to (b) A vacancy the office of a member alternate who was elected by cities shall be filled by a special election called by the cast. authority. Only those cities which elected the member or alternate (e) Each city shall cast all of its votes for one candidate for each to the office in which the vacancy has occurred are eligible to vote. office, by resolution of the city council. The resolution casting the Nominations and balloting shall be conducted in the same manner city's votes shall be delivered to the authority at least 24 hours before as a regular election, except that the date of the election and time the meeting at which the election is held. Any resolutions not periods shall be as prescribed by the authority. The member or received by the authority 24 hours before the election may not be alternate elected to fill a vacancy shall meet the qualifications counted. applicable to the vacant office and shall serve for the remaining term (f) (1) The candidate receiving the highest number of votes cast of the vacant office. by cities with pumping rights shall be elected to fill the office Sec. 509. The board shall annually elect from its membership a representing cities with pumping rights.The candidate receiving the chairperson, vice chairperson, secretary, and treasurer. The board next highest number of votes cast by cities with pumping rights,who may appoint additional officers and employ additional employees is not a city council member from the same city as the candidate 89 380 89 360 and assistants that may be necessary or appropriate. of participation, and other evidences of indebtedness issued by the Sec. 510. A majority of the board cons4tutes a quorum for authority shall be payable from any revenues or moneys of the transaction of business of the authority. authority available therefore and.not otherwise pledged and shall be Sec. 511. Except as otherwise provided, all actions of the board negotiable even though they are payable from special funds. The shall be approved by an affirmative vote of a majority of all of the authority may do any of the following with regard to any notes, members. bonds, certificates, or other evidences of indebtedness: Sec. 512. Each member shall receive compensation for each (1) Sell them at public or private sale for prices, and upon terms meeting of the board attended, which amount shall be fixed from i and conditions, determined by the authority. time to time by the board,but shall not exceed the amount allowed (2) Sell them as serial or term instruments or both. by law for members of the board of a municipal water district. (3) Have them bear dates, and mature at times,not to exceed 20 Sec.513. All meetings of the board shall be open to the public and years from their respective dates, bear interest at rates, be payable shall be held in accordance with the Ralph M. Brown Act (Chapter at times, be in denominations, be in forms, either coupon or 9 (commencing with Section 54950) of Part 1 of Division 2 of Title registered,carry registration privileges,be executed in the manner, 5 of the Government Code). be payable in lawful money of the United States at places, and be Sec. 514. The board shall adopt rules and regulations for the subject to terms of redemption as the indenture,trust agreement,or conduct of its affairs. resolution relating to those instruments provides. Sec. 515. Each of the officers, employees, and assistants shall (4) Secure them by a trust agreement or indenture by and serve at the pleasure of the board and shall perform the duties and between the authority and a corporate trustee or trustees, which have the authority as determined by the board. may be any trust company or bank having the powers of a trust company within or outside the state. The trust agreement, Article 6. Financial Provisions indenture, or the resolution providing for the issuance of the instruments, may pledge or assign the revenues of the authority Sec.601. The authority may accept federal,state,and local funds under the provisions of this act. The indenture, trust agreement, or which are available for purposes of groundwater cleanup and for resolution providing for the issuance of the instruments may contain otherwise implementing this act. The authority may accept grants provisions for protecting andenforcing the rights and remedies of and donations to carry out the purposes of this act. The limits on the holders determined by the authority to be reasonable and proper bonded indebtedness shall be exclusive of grants and donatibns. and not in violation of law. Any trust agreement or indenture may Sec. 602. The authority may impose an annual pumping right set forth the rights and remedies of the holders and of the trustee or assessment which may not exceed five dollars ($5) per acre-foot to trustees,and may restrict the individual right of action of holders.In pay for administrative costs.The amount of the assessment shall be addition, the indenture, trust agreement, or resolution may contain established at an amount equal to the amount needed to pay for other provisions determined by the authority to be reasonable and administrative costs.The assessment authorized by this section shall proper for the security of the holders. not be used to replace federal, state, or other money which is (c) Any evidence of indebtedness issued under this act does not available to the authority. constitute a debt of the state or of any political subdivision thereof Sec. 603. The authority may issue warrants, in an aggregate ora pledge of the faith and credit of the state or of an amount not to exceed four hundred thousand dollars p g y political pay for the costs of formation of the authority. The warrranttss may subdivision,other than the authority,but shall be payable solely from Y the fundsof the authority specified in this act.All instruments debt bear interest at a rate not exceeding 8 percent per year from the date shall contain on the face thereof a statement to the effect that neither of issuance until funds are available to pay the warrants.Warrants for the state nor the authority is required to pay the same,or the interest the costs of formation shall be repaid by the levy of a pumping right thereon, except from certain revenues of the authority and that assessment pursuant to Section 602,the imposition of a charge for the neither the faith and credit nor the taxing power of the state or of sale of groundwater extracted and treated by the authority,or with any political subdivision is pledged to the payment of the principal other available revenue. of,or the interest on,those instruments.The issuance of instruments Sec. 604. (a) The authority may issue negotiable promissory of debt under the provisions of this act shall not require the state or notes and bond anticipation notes to acquire funds for any purposes any political subdivision thereof to levy or to pledge any form of authorized by this act subject to Sections 71810,71811, 71812,71813, taxation or to make any appropriation for their payment. andthe Water Code. (d) Any holder of instruments of debt issued under this act or any (b)) Promissory notes, bond anticipation notes, bonds,certificates of the coupons appertaining thereto, and the trustee or trustees 89 410 89 430 under any indenture or trust agreement, except to the extent the act shall be imposed upon the holder of a prescriptive pumping right rights granted in this act may be restricted by any resolution at a uniform rate per acre-foot of prescriptive pumping right authorizing the issuance of,or any such indenture or trust agreement Sec. 607. The authority may exempt a producer from all or part securing, the instruments, may, either at law or in equity, by suit, of the annual pumping right assessment established pursuant to action, mandamus, or other proceedings, protect and enforce any Section 605 for water pumped and treated from a contaminated well and all rights granted by state law,this act,resolution,indenture,or if, with the prior approval of the authority for the project, the trust agreement, and may enforce and compel the performance of producer funds the design and construction of the wellhead all duties required by this act or by the resolution,indenture,or trust treatment system for that well. agreement to be performed by the authority or by any officer, Sec. 608. The authority may annually adjust the maximum employee, or agent thereof. assessments authorized pursuant to this act by an amount not to (e) The authority may provide for the issuance of instruments of exceed the percentage change in the United States Consumer Price debt of the authority for the purpose of refunding any instruments Index for the Los Angeles/Anaheim/Riverside area between January of debt or any series or issue of instruments of outstanding debt of 1, 1993, and the date of the adjustment. the authority, including the payment of any redemption premium Sec. 609. (a) The authority may, by resolution of the board, thereon and any interest accrued, or to accrue, to the date of impose a pumping right assessment pursuant to Section 605 only in redemption until the purchase or maturity of instruments of debt. accordance with this section and Sections 610 to 614, inclusive. (f) Any instruments of debt issued under this act, their transfer, (b) Prior to levying a new assessment or approving an increase in and the income therefrom,are not subject to taxation by the state or an existing assessment, the authority shall hold at least one hearing any political subdivision of the state. at which presentations may be made. (g) The state does pledge to, and agree with, the holders of the (c) (1) Notice of the time and place of the hearing, including a instruments of debt issued pursuant to this act,and with those parties general explanation of the matter to be considered and a statement who may enter into contracts with the authority pursuant to the of the amount of the assessment,shall be mailed,at least 90 days prior provisions of this act,that the state will not limit,alter,or restrict the to the hearing,to each producer,each city,the watermaster,and any rights vested in the authority to fulfill the terms of any agreements interested party who files a written request with the authority for made with the holders of instruments of debt authorized by this act, notice of any hearing on a new or increased assessment. and with the parties who may enter into contracts with the authority (2) The authority shall also cause notice of the hearing to be pursuant to the provisions of this act,or in any way impair the rights posted at least 45 days prior to the date of the hearing at the entrance or remedies of the holders of the instruments of debt or the parties to the location where the hearing will be held and to be published, until the instruments of debt, together with interest thereon, are pursuant to Section 6066 of the Government Code, in a newspaper fully paid and discharged and the contracts are fully performed on of general circulation printed and published within the boundaries the part of the authority. The authority as a public body corporate of the authority,if there is one or,if not,in a newspaper printed and and politic may include the pledge herein made in its debt published in Los Angeles County. instruments and contracts. (d) Each entity that operates a public water system for retail Sec. 605. The authority may impose an annual pumping right service within the boundaries of the authority shall prepare and assessment, not to exceed thirty-five dollars ($35) per acre-foot, to include with its regular bill for charges sent to its customers a notice construct facilities and acquire property, to retire promissory notes, of the hearing at least 15 days prior to the hearing. The notice shall bond anticipation notes, bonds and certificates of participation and read as follows: other evidences of indebtedness, and to pay for operations and Notice of Public Hearing maintenance of projects constructed by and for the authority. The authority shall impose an assessment pursuant to this section for at operation and maintenance purposes only if,and to the extent that, On at money for operation and maintenance purposes is not received from (date) (time) other sources after reasonable efforts have been made to secure that , the Board of Directors of the funding. However, no assessment shall be imposed for water (address) extracted pursuant to a conjunctive use storage agreement between San Gabriel Basin Water Quality Authority the producer and the watermaster, which the authority has will hold a protest hearing concerning a proposed approved. pumping right assessment of Sec. 606.' A pumping right assessment imposed pursuant to this (amount) 89 480 89 460 per acre-foot of groundwater produced. If added to resolution to be published pursuant to paragraph (2) of subdivision the water bill, the assessment would amount to (c) of Section 609, and shall consider any and all objections at the approximately per month for an time and place set forth in the notice. (amount) (d) The board shall,at the time and place set forth in the notice, average residential customer. Registered voters conduct the hearing and consider any objections or protests to the seeking to protest the proposed assessment shall assessment. The board may overrule any and all objections. The do so in a written communication filed with theboard may, thereafter, adopt, reduce, or withdraw the assessment. Authority at not (e) The determination of the board is final. (address) (f) This section applies to the continuation of a previously later than the time set for the hearing. Questions imposed assessment only if the board does not propose to increase concerning the assessment or the protest the amount of the assessment. hearing should be directed to the Authority at (telephone) Article 7. Miscell. aneous Sec. 701. (a) The joint powers authority is dissolved upon the Sec. 610. At the time and place set forth in the notice the board initial election of the city members pursuant to Section 505. The shall conduct the hearing, and shall consider all objections or authority succeeds to all the properties, rights, obligations, and protests,if any, to the resolution referred to in the notice, and may liabilities of the joint powers authority on the date of its dissolution. continue the hearing from time to time. Upon the conclusion of the (b). Any and all actions by or against the joint powers authority hearing, the board may adopt, revise, reduce, or withdraw the pending at the time of its dissolution may be prosecuted to final assessment. The board shall make its determination on the judgment by or against the authority. assessment described in the resolution, and the determination is (c) After the effective date of the dissolution of the joint powers final. . authority,no action may be brought for or against the dissolved joint Sec.611. Any registered voter seeking to protest the adoption or powers authority or its commissioners, officers, or employees, but increase of an assessment shall do so in a written communication filed may be prosecuted by or against the authority. with the authority not later than the time set for the hearing. A Sec. 702. This act shall be liberally construed to carry out its protest by a registered voter shall include the name and residence purposes• address of the person making the protest and shall be signed and Sec.703. Except for Section 705,this act shall become inoperative dated. A protest may be withdrawn at any time before the when both of the following have occurred: determination on the assessment by the board. (a) The State Water Resources Control Board, with the Sec.612. If the board receives protests that are not withdrawn at concurrence of the State Department of Health Services, the time of determination by the board,which represent 50 percent determines, in writing, that substantially all public water system of the registered voters within the authority,no further proceedings wells within the basin are pumping water that is not contaminated, may be conducted to adopt or increase an assessment until one year or not likely to become contaminated, in excess of federal or state from the date of the initiation of the protest procedure. safe drinidng water standards. The authority shall pay a fee to the Sec.613. If the board receives protests that are not withdrawn at State Water Resources Control Board and to the State Department the time of determination by the board,which represent at least 15 of Health Services, respectively, equal to the reasonable costs percent,but less than 50 percent,of.the registered voters within the incurred by those agencies pursuant to this subdivision. authority, the board may adopt, revise, change, or reduce an (b) All contracts, and bonds or other evidences of indebtedness, assessment,but the adoption or modification of an assessment is not executed or issued by or on behalf of the authority have been effective until approved by a majority of the voters in an election satisfied. held within the authority. See. 704. (a) The revenues of the authority collected from the Sec. 614. (a) If the board imposes an assessment pursuant to assessment authorized by Section 605 and used by the authority to Section 605, the board may, by resolution, continue the assessment construct,or contribute to the construction of,capital projects for the in successive years at the same or reduced rate. cleanup of any site that has been listed on the National Priorities List (b) Prior to continuing the assessment, the authority shall hold at established pursuant to subparagraph (B) of paragraph (8) of least one hearing at which presentations may be made. Section 105 of the Comprehensive Environmental Response, (c) The authority shall cause notice of the intent to adopt the Compensation,and Liability Act of 1980,as amended (42 U.S.C.Sec. 89 520 89 550 r 9605 (8)(B)) and is located within the Main San Gabriel Basin shall are paid, as determined by the Treasurer, who shall notify the be credited to the state's 10-percent cost share obligation for capital Secretary of State. Upon receipt by the Secretary of State of the costs under any program undertaken with the United States Treasurer's notice, Article 6 (commencing with Section 601) is repealed. The Treasurer's authority to levy and collect assessments Environmental Protection Agency to clean up the sites. under this act is limited according to the provisions of this act and (b) Nothing in this section precludes the authority from receiving shall cease when all debts of the authority have bedn paid. from state agencies grants or loans for purpose of the cleanup of SEC. 2. If any provision of this act or the application thereof to contaminated groundwater.Any such state grant or loan shall also be any person or circumstances is held invalid,that invalidity shall not credited to the state's 10-percent cost share obligation. affect other provisions or applications of the act which can be given Sec.705. On or before January 1, 1997,the Los Angeles Regional effect without the invalid provision or application,and to this end the Water Quality Control Board shall report to the Legislature on the provisions of this act are severable. progress of the authority with regard to actions undertaken pursuant SEC.3. Notwithstanding Section 17610 of the Government Code, to Article 4 (commencing with Section 401). if the Commission on State Mandates determines that this act Sec. 706. (a) Except as provided in this section, this act shall remain in effect only until January 1, 1998, and as of that date is contains costs mandated by the state, reimbursement to local unless a later enacted statute, which is enacted before agencies and school districts for those costs shall be made pursuant repealed, udeletes or extends that date. to Part 7 (commencing with Section 17500) of Division 4 of Title 2 January 1, rales (b) Upon the repeal of this act, the assets and debts of the of the Government Code. If the statewide cost of the claim for I reimbursement does not exceed one million dollars ($1,000,000), (1) The Los Angeles Regional Water Quality Control Board shall I reimbursement shall be made from the State Mandates Claims Fund. dispose of the property and assets as appropriate. The Los Angeles iNotwithstanding Section 17580 of the Government Code, unless Regional Water Quality Control Board shall receive reimbursement otherwise specified in this act,the provisions of this act shall become for actual costs incurred related to the disposition of the property and operative on the same date that the act takes effect pursuant to the assets.The cost recovery shall be from the proceeds of the disposition I California Constitution. pursuant to this section.The proceeds,if any,of the disposition shall be transferred to the Treasurer to be applied to pay the debts of the i authority and, if any proceeds remain, shall be transferred to the Treasurer for deposit in the Hazardous Substance Cleanup Fund for use in financing groundwater contamination investigation and remediation in the basin.Preference shall be given in the disposition of assets of the authority to transfers to producers who may be able to use the assets for the benefit of water distribution systems and to provide for continued operation and maintenance of the assets in order to further the purposes of this act. (2) The Treasurer shall administer the payment of debts of the authority. The Treasurer shall apply the proceeds from the disposition of assets to the payment of the debts.If debts remain after application of the proceeds from disposition of assets,the Treasurer O may continue to collect,in lieu of the authority, the pumping right assessments authorized under either (A) Section 602 if the debt relates to administrative costs or (B) Section 605 if the debt is to repay warrants, notes, bonds, and other evidences of indebtedness, or both, to make payments pursuant to leases or installment sale agreements in connection with certificates of participation, to pay for operation and maintenance costs of facilities, and to make i payments pursuant to any other financial obligations. All provisions set forth in Article 6 (commencing with Section 601) relating to the levy and collection of the pumping right assessments are not repealed and shall continue in effect until the debts of the authority 89 sso 89 570