HomeMy WebLinkAboutAgend Packet - July 28, 2008 - UBAGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL
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AZUSA LIGHT & WATER July 28, 2008
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA, CA 91702
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AZUSA UTILITY BOARD
f ANGEL A. CARRILLO
CHAIRPERSON '
URIEL E. MACIAS JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
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KEITH HANKS ROBERT GONZAI
;BOARD MEMBER BOARD MEMBER
16:30 P.M. Convene to Regular Meeting of the Azusa Utility Board and Azusa City CouIneil
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• Call to Order 1
• Pledge to the Flag
• Roll Call
-A. PUBLIC PARTICIPATION
(Person/Group shall be allowed to speak without interruption up to five (5) minutes maximum time,
subject to compliance with applicable meeting rules. Questions to the speaker or responses to the
speaker's questions or comments shall be handled after the speaker has completedhis/her comments.
Public Participation will be limited to sixty (60) minutes time.)
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11. New Employee Introductions
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(a) New Electric Division Employees 1
(b) Gerard Palo -Dy — Power Resources Technician (Intem/Part;Time)
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B. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or
Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under
SPECIAL CALL ITEMS.
Minutes. Recommendation: Approve minutes of regular meeting
e 23, 2008 as written.
Minutes.pdf .
2. Acceptance of Grant of Easement from Citrus Crossing Properties Fee LLC for Electric Utilities.
Recommendation: Adopt the following resolution:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING A CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORD THEREOF.
Cdrusxing_RES.pdf CitrusKngEasefrent. CitrmXmgRpt. pdf
pdf
03. Additional Compensation to Black & Veatch for Water Treatment Plant Upgrade.
Recommendation: Approve the addition of $326,800 to pay for additional and anticipated consulting
services by Black & Veatch (B&V) Corporation for providing construction management engineering
services for Canyon Membrane Water Treatment Plant (WTP) Upgrade and Expansion Project, Project
W VF -207.
Add] to Black & B&V-EngAn-dntReq.
Veatch.pdf pdf
4. Additional Compensation to SSC Construction. Incorporated for Water Treatment Plant Upgrade.
Recommendation: Approve Change Order No. I I for the addition of $9,454.31 and extension of time to
complete 24 calendar days to the SSC Construction, Incorporated contract for construction of Project
WVF-207, Canyon Membrane Water Treatment Plant (WTP) Upgrade and Expansion.
B&V-Change0rder11 Rpt SSC CO 11. pdf
.pdf
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5.
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Inspection Services at Rosedale. Recommendation: Approve a one year extension of the Professional
Services Agreement between the City of Azusa and Wren & Associates for inspectidn of electric conduit
& facility installations at the Rosedale Development. i
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Wren-Extension-Elec
pdf
Project Inspections. Recommendation: Approve (1) extension of Wren & As'sociates contract for
Rosedale Project inspection from June 30, 2008 -June 30, 2009; (2) extension of Civiltec Engineering
contract for Rosedale Project Inspection from June 30, 2008 t6 June 30, 2009; (3) addition of $33,000 to
the Civiltec Engineering contract for Rosedale inspection Services.
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j Insptn Svc Contract ,
Extns-Wtr. pdf .
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i7. Approval to Seek Bids for the Installation of Project W-245�A & B. Recommendation: Approve the
advertisement for, and solicitation of bids for Project W-245 A & B, Water Main Replacement in Vincent
Avenue, West Covina and Sunset Avenue, Azusa, and delegate authority to the City Manager to approve
j the award of the contract for the main replacements to the lowest and responsible bidder.
Sunset -Vincent Wtr
Malns. pdf
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8. Approval of Additional Compensation to Systems and Software for Implementation of Interactive
Voice Recorder and Outbound Dialing. Recommendation: Approve the addition of $26,000 to the
Systems & Software contract purchase order.
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UA
S an
Amendrmt.pdf
Recommendation: Approve Addendum to Option and Settlement Agreement in substantial form,
subject to approval of the final language by the legal counsel.
AddendumReport.p Addendurnpdf Exhibit -F -G_072108.
df pdf
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C. SCHEDULED ITEMS
Resolution Approving Augmented Reserve Policies for Electric and Water Utilities.
Recommendation: Approve the following resolution:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, SETTING
CERTAIN RESERVE POLICIES FOR THE UTILITIES DEPARTMENT.
Resarve-Pdrry Resol n. pdf n
Report.�pdI I
STAFF REPORTS/COMMUNI TIONS
Jl. Drought Charge Implementation
El
Drought Charge. pdf
MTq 3 X 565
1 Annual Adjustment of Replacement Water Cost Adjustment Factor
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R WCAF. pdf
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Monthly Update on Water Treatment Plant
Moly MP Rpt. pdf
4J Customer Survey Results
Custorrer
Survey. pdf
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A San Gabriel Valley Council of Governments Workshop
SGVCOGkshop.
pdf
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6.,/ Upper San Gabriel Valley Municipal Water District Water Fest!
Water Fest
Event.pdf
E. DIRECTOR'S COMMENTS V
Il. Request for proclamation to Nicholas Ryan HnH'for attaining the rank of Eagle Scout, to be presented at
the Village Covenant Church on Saturday, August 16`h.
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2. Request for Certificates of Recognition for Azusa Boxing Club
.3. Request for Certificate of Appreciation to outgoing President of the Azusa Chamber of Commerce,
Mercedes Castro, of Proforma Quality Printing, to be presented at the Chamber I stallation Dinner on
Tuesday, July 29`h.
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F. CLOSED SESSION ITEM
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CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Pursuant to Government Code Section 54956.9(b) i
One potential case
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!G. ADJOURNMENT
1. Adjournment. j
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'7n compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city
!meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the
;meeting or time when special services are needed will assist staff in assuring that reasonable arrangements
can be made to provide access to the meeting.
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CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
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OF THE AZUSA UTILITY BOARD/CITY COUNCIL
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MONDAY, DUNE 23, 2008 — 6:30 P.M.
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The Utility Board Members of the Cityof Azusa met in regular session, at the above date and
time, at the Light and Water Conference Room, located at 729 N. Azusa Avenue, Azusa,
California. d
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Vice Chairman Macias called the meeting to order. I Call to Order
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ROLL CALL I Roll Call
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PRESENT: BOARD MEMBERS: GONZALES, MACIAS, HANKS, ROCHA
ABSENT: BOARD MEMBERS: CARRILLO i
Also Present
ALSO PRESENT:
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City Attorney Ferre, City Manager Delach, Director of Resource Management Tang, Assistant to
the Utilities Director Kalscheuer, Assistant Director of Water Operations Anderson, !Senior
Electrical Engineer Langit, Azusa Police Lieutenant Hunt, Assistant Director Customer Care and
Solutions Vanca, Assistant Director of Electric Operations Ramirez, Administrative Services
Director -Chief Financial Officer Kreimeier, Customer Care Operations Supervisor Tapia, Finance
Controller Aguilar, Director of Public Works/Assistant City Manager Haes, City Clerk Mendoza,
Deputy City Clerk Toscano.
Public Participation I Pub Part
Mr. Jorge Rosales addressed the Board Members with concern regarding the contract award to J. Rosales
.BnB Engineering for Underground Electric Substructures, stating that the large spread between the Comments
,bids was raised concern and he also asked what research was done to review the bids. He
'expressed concern regarding the agreement with CRC, specifically the amendment which reduces
,the capital improvements, the money used for grant writing and the safety of the public use of the
property.
Intro New
Assistant Director of Water Operations Anderson introduced the new Water Distribution Workers Employees
;I, Garret Conrad and Ruben Lopez. Customer Care Operations Supervisor Tapia introduced new
;part Time Cashier, Angelica Guerrero. Assistant Director of Electrical Operations Ramirez
'announced that the two new employees, not present are Apprentice Line Mechanic Vincent
IBenavidez, and Line Mechanic Brandon Horton.
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SGVMWD
Ms. Carol Montano of the San Gabriel Valley Municipal Water District addressed the Board C. Montano
Members introducing Messrs. David Pinto and Robert Morales of the Community Public Relations D. Pinto &
who provided background and history of the District. They then introduced H2Owl, Mascot who R. Morales
presented water saving tips and will be visiting schools and other places to encourage
conservation. They talked about and distributed information regarding water saving tips for home
and businesses.
Consent Cal
The CONSENT CALENDAR consisting of Items B-1 through B-4, was approved by motion of Approved
Board Member Rocha, seconded by Board Member Gonzales and unanimously* carried with the B-3 Spec Call
exception items B-3, which was considered under the Special Call portion of the Agenda.
Min Appvd
1. The Minutes of the regular meeting of May 27, 2008, were approved as written.
Pur trnfmrs
2. The award of contract for maintenance service of the two power transformers at the Kirkwall Kirkwall
Substation to Edison ESI in the amount of $14,030 plus sales tax was approved and the City Substation
Manager was authorized to execute the final maintenance agreement.
Spec Call
3. SPECIAL CALL ITEM.
Res. 08-053
4. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING Accptg Easmt
A CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF. (Water Lines Citrus Cross
in Citrus Crossing Development)
Special Call
SPECIAL CALL ITEMS Items
Rocha
Board Member Rocha addressed item regarding the award of contract to BnB Engineering stating Comments
that he too had a concern with the widespread between bids and also although they are
responsive to the requirements of the project, he asked if they are responsible.
B. Tang &
Director of Resource Management Tang responded to the question stating that BnB has been D. Ramirez
used by the City before and been through the bidding process; they have worked on the Block 36 Response to
project. Assistant Director of Electric Operations Ramirez also responded stating that BnB worked Questions
with ALP and their work is outstanding with few problems.
BnB Engr.
Moved by Board Member Rocha, seconded by Board Member Hanks and unanimously* carried to Install under -
award of contract to BnB Engineering in the amount not -to -exceed $760,346 to supply and install ground sub -
underground substructures at various locations per plan and specifications for Project # LD2008- structures
2; and approve budget amendment in amount of $161,000 to capital improvement project
account #73007A.
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Sched Items
SCHEDULED ITEMS
B. Tang
Director of Resource Management Tang presented a resolution to amend Light and Water Rules
Amend Rules
and Regulations to bring billing of Master -Metered accounts in line with Industry Standard
g-Regs
Practices. He detailed the issue and stated that there is a need to eliminate the sub -meter
Master
charges in order to clear up the disparity between master metered customers inside the City vs.
Metered
those located outside the City and to bring the rate structure more in line with industry standards;
Accounts
he noted that the change in practice will result in a revenue loss to Azusa Light & Water but it is
necessary to establish equity amongst rate payers. He responded to questions posed by Board
Members regarding possible impacts to other customers, loss in revenue, affect on others with
assigned meters.
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06/23/08 PAGE TWO
Board Member Hanks offered a Resolution entitled
4 Res. 08-054
A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Amend
AMENDING THE WATER RATE SCHEDULE INCLUDED IN AZUSA LIGHT & WATER'S RULES AND Elect & Water
REGULATIONS GOVERNING ELECTRIC AND WATER SERVICES. { Services
Moved by Board Member Hanks, seconded by Board Member Gonzales to waive further reading
and adopt. Resolution passed and adopted by the following vote of,the Board Members:
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AYES: BOARD MEMBERS: GONZALES, MACIAS, HANKS, ROCHA
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: CARRILLO ;
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City Mgr
City Manager Delach presented the request by California Resource Connections to amend MOU
Comments
with the City for improvements of the Taylor House/property. He noted that CRC was able to get
many in-kind services donated and it shifted some funds to be used for management and
administration; further, there were funds allowed for grant writing. He also noted that M5. Avila
wrote grants for the Park and Recreation Department.
Ms. Suzanne Avila of California Resource Connections (CRC) addressed the issue detailing the
S. Avila
CRC
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istory of the project (the Taylor Property); talked about the in-kind donations received;
introduced Azusa residents Joe Olivarez, member of the CCC, who talked about work that has
been done on the property; and she provided an update on the project.
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Amend to
After further discussion, it was moved by Board Member Rocha, seconded by Board Member
CRC MOU
Gonzales and unanimously* carried to approve the amendment to the Memorandum of
approved
Understanding between California Resource Connections (CRC) and the City of Azusa to change
the eligible uses of funding provided by the MOU. ;
Staff Rpts
STAFF REPORTS/COMMUNICATIONS
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B. Tang
Director of Resource Management Tang provided an update on water stating that the City will
Comments
enter into Phase II of the Drought as of July 1, 2008. He stated that the canyon basin watef levels
Water
are dropping fast with no replenishment: Los Angeles County Public Works and San Gabriel Valley
Drought
Municipal Water District are repairing their inlet pipeline and there is no water from the dam to
the spreading grounds. He stated that the State of California is in a drought and the availability of
Water will become less; even the purchase of expensive water is not going to be easy. He
described the new Phase 11 which will allow watering in residential areas three times and i week
and stated that staff is preparing to send notices out to customers. j
B. Tang &
Director of Resource Management Tang and Assistant Director of Water Operation Anderson
C. Anderson
presented the Month Report on the Water Treatment Plant noting that it is about 80% complete
WT
with the anticipate complete date in October; they responded to questions posed regarding
testing of the Plant. i
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Director of Resource Management Tang presented the informational item requested by Board
B. Tang
Water
Member Carrillo at a previous meeting regarding Water Districts and Board the City has
Districts Rpts
jurisdiction authority over or has a relationship.
B. Tang
Director of Resource Management Tang presented the Quarterly Fuel Cost Adjustment report for
Fuel Cost
San Juan resource noting that for the third quarter is it slightly less and will be tapering off and
Adjustment
reduced to zero by next year.
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06/23/08 PAGE THREE B. Tang
Director of Resource Management Tang presented the update on Customer Service Projects and Cust Svs
responded to questions posed regarding kilowatt hour measurement.
TIME OF ADJOURNMENT: 7:50 P.M.
SECRETARY
NEXT RESOLUTION NO. 08-055.
* Indicates Carrillo absent.
0019
Dir Cmts
DIRECTOR'S COMMENTS
August Mtg
It was consensus of Board Members that the regular meeting of August 25, 2008, be canceled as
Canceled
in the past.
B. Tang
Director of Resource Management Tang provided an overview of the LivingWise Program that was
Update
an outcome from the Hoover Contract/Boulder Canyon Hydro Power; under the contract the City
LivingWise
was required to implement customer education program with respect to energy efficiency and
conservation. It is done with partnership with the Azusa Unified School District, which teams up
with 6`" grade teachers who incorporate energy conservation into the curriculum; the City provides
supplies. He responded to questions posed regarding possible incorporation into the private
schools and financial impacts. Assistant to the Utilities Director Kalscheuer noted that the
program is funded through the public benefit charge which is restricted for uses aimed at
promoting energy conservation.
Adjourn
It was moved by Board Member Gonzales, seconded by Board Member Hanks and unanimously*
carried to adjourn.
TIME OF ADJOURNMENT: 7:50 P.M.
SECRETARY
NEXT RESOLUTION NO. 08-055.
* Indicates Carrillo absent.
0019
B -z
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CONSENT CALENDA.
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TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITH
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DATE: JULY 28, 2008
SUBJECT: ACCEPTANCE OF GRANT OF EASEMENT FROM CITRUS CROSSING
PROPERTIES FEE L.L.C, OWNER 1
RECOMMENDATION
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It is recommended that the Utility Board/City Council accept Grant of Easement1by attached
Resolution for the subject location and authorize the City Clirk to file it in the Office of the Los
Angeles County Recorder.
BACKGROUND
Landowner is required to grant an easement to Azusa Light & Water Departmej
facilities to be installed in his or her property. These grants of easements allow
the right-of-way for operation & maintenance of such facilities.
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Attached herewith are the grant of easement and its "Exhibit'A" and "Exhibit B
facilities located in property known as the Foothill Shopping Center.
This easement was secured and will be used for right-of-way access in the opei
maintenance of underground electric conduits, cables and related substructures
property. S
FISCAL IMPACT
All costs associated with the processing of this grant of easement are bome by
There is no cost to the City. 1
Prepared by: Hien K. Vuong - Electrical Engineer
for any electric
ie Utility -owner
for the electric
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at this
developer.
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RESOLUTION NO.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF
AZUSA ACCEPTING A CERTAIN GRANT OF EASEMENT AND DIRECTING THE
RECORD THEREOF.
THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY
RESOLVE AS FOLLOWS:
SECTIONS 1. That certain Grant of Easement executed by Citrus Crossing Properties FEE
L.L.0 under date of the July 14th, 2008 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 Exhibit "A" and `B" attached hereto each Grant of Easement
Said Grants of Easements are 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 day
Joseph Rocha, Mayor
ATTEST:
Vera 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 28h day of July, 2008.
AYES:
COUNCILMEMBERS:
NOES:.
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
Vera Mendoza, City Clerk
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
The City of Azusa THIS DOCUMENT IS f7LED AT THE
Light and Water Department 4 REQUEST OF rHE CITY OF A7USA
729 North Azusa Avenue PURSUANT Ib SECCION 6103 OF
P. O. Box 9500 nni GOVERNMENTCODE. NO
Azusa, CA 91702 FEF SHALL BE CHARGED THGREFoR.
(SPACE ABOVE THIS UNE FOR RECARDER'S USE)
GRANT OF PERMANENT EASEMENT
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FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
CITRUS CROSSING PROPERTIES FEE L.L.C, OWNER ("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 APPURTENANCES for ELECTRICAL PURPOSE ("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 mafiner the Systems
together with any and all of the purposes hereinbefore mentioned.
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TO HAVE AND TO HOLD the above granted and described premises unto the CITY
OF AZUSA, CALIFORNIA, its successors and assigns forever.
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fj IN WITNESS HERETO, Grantor has executed this Grant of Permanent Easement this
day of J 2008. t
CITRUS CROSSING PROPERTIES FEE L.
By. d i
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I Sig ure I
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ItS:
j Title
012
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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State of California 1
County of Las f7Y UA>°i�e✓S
On O� I Lf 0 8 before me,
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personally appeared s Y t'Vi • t f/wr ' ��
CYNC. iIA SE=FER
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R=a _ Notary PUb!:c - Colifomia S
Los Angeles County
My Comm. Expires Feb 5.2009
Plaro Notary Scat Abwo
who proved to me on the basis of satisfactory evidence to
be the person(Kwhose named is>� subscribed to the
within instrument and ad(nowleciged to me that
he/s /the executed the same in his; nn authorized
ca a�aty(i", and that by hisJ�r/tXir �nature(�j on the
instrument the person, or the entity upon ehalf of
which the person(4 acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNESS I hand and official seal.
Signature
SQnaIV of NINA b
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons retying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Dq�cumertt
(
Title or Type of Document: `-' Mrvt- o •T" P-pr>'ila
Document Date: I, ti ( n b Number of Pages: _
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signers Name:
❑ Individual
❑ Corporate Officer — TRIe(s): _
U Partner — ❑Limited OGeneral
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
RIGHTTHurlePArtT
DESIGNER.0
.
Signers Name:
❑ Individual
j Corporate Officer — Title(s): _
❑ Partner — LJ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
LJ Other:
Signer Is Representing:
RIGHTTHWASPRINT
OFSIGNER
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EXHIBIT A - LEGAL DESCRIPTION j
AZUSA LIGHT & WATER EASEMENT FOR ELECTRICAL PURPOSES
I PAG£ 1 OF 3
A POR27ON OF PARCEL 7 OF PARCEL MAP 14845 RECORDED /N900/( 153, PAGiES 7 THROUGH 5 Of
PARCEL MAPS, HMO LN THE OFFLCES OF 71,/E COUNTY RECORDER OF THE COUNTY OF LOS ANGELES,
STATE OF CALIFORNIA, BEING MORE PARTIL7/LARL Y DESCRIBED AS FOIL 0N5 AND 1LL U51RA7F0 ON
EXHIBIT B A7TAMid HERETO ANO MADE A PART OF TH15 DOCUMENT
PARCEL 1
A 57RIP OF LAND 10.00 FEET NDE, TH£ 6EN7FRL1NL" OF WICH IS DESCRIBED AS FOLLONS
BE67NN/NO AT THE SOUIHEASIFRL Y CORNER OF SAID PARCEL 1,• THENCE ALONG THE SOUTHER[ Y
LINE OF SAID PARCEL 1 NORTH 895830' NEST A DISTANCE OF 467.24 FEET,• /HENCE L£Al9NG SAID
SOL17HERZ Y LINE NORTH 0001;30' EAST A DISTANCE OF 6.36 FEET TO NOR716RL Y EASEMENT UNE
FDR ELECTRICAL FACILITIES DEDICATED TO C/7Y OF AZU54 BY'960 RECORDED 2/14/56 AS
INSTRUMENT NO 2329 IN BOOK 50304, PAGE 128 OF OFROIAL Z RECORDS AND THE RRU£ PaN7 OF
B£6YNNNO' THENCE NORTH 003749' NEST A DISTANCE OF 5429 FEET 70 A POINT HENCEFORTH
REFERRED TO AS P61N7 ;4'- THENCE CONTINUING NORTH 003749' NEST A DISTANCE OF 46.34 FEET
THENCE NORTH 0577550" NEST ADISTANCE OF 141.45 FEET,• THENCE NORTH 244450" NEST A
DISTANCE OF 55.49 FEET TO A POINT HENCEFORTH REFERRED TO AS POINT 9;• THENCE CON771VOINO
NORTH 244450' NEST A DISTANCE OF 43..33 F£ET,• )HENCE NORTH 7142;71' NEST A DISTANCE OF
178.05 FEET TO THE SEGINN/NO OF A 10.00 FOOT RADIUS CURLE; CONCAIi£ NORTHEASTERLY,- 711f NCE
NORIHNESYRL Y ALONG 7HE ARC OF SAID CURIE 7HROU61-1 A 'CENTRAL ANGLE OF 714018" AN ARC
LENGTV OF 12.51 FEET,• THENCE NORTH 000214" NEST A 015TANCE OF 55.34 FEET TO A POINT
HENCEFORTH REFERRED TO AS POINT C;• 7IIENCE CONTINUING. NORTH 000214" 9g5T A DISTANCE
OF 36.49 FEET THENCE NORTH 1874'12' EAST A D/STANCE OF, 142 JO FEET TO A POINT
HENCEFORTH REFERRED TO AS PONT D ; SAID POINT BEING TV- TERMINUS THEREOF.
PARCEL 2
A S7RIP OF LAND 10.00 FEET N9DE, THE CENTERLINE OF N?71CH IS DESCRIBED AS FOLLONS-
BEOINN/NO AT SAID POINT W. 771EN6E SOUTH 89593.3" EAST A DISTANCE OF 2401 FEET TO A
POINT HENCEFORTH REFERRED TO AS POINT E•; SAID POINT BEING THE 7E77MINUS 9HEREDF.
PARCEL J
A S)R1P Or ZAND 15.44 FEET NDE, THE CENTERLINE OF N9)/CH IS DESCRIBED AS -OU OAS:
I
COMMENCING AT SAID PGNT £;• )HENCE NOR711 00027" EAST A DISTANCE OF 0.91 FEET TO THE
7RUE POINT RFBEGYNN/NG,• 71-1ENCE SOUTH 895933" EAST A DISTANCE OF IT 71 FEET TO TH£
TERMINUS 7Hf1?E0F. ;
PARCEL 4
A 57RIP OF LAND 10.00 FEET NODE, INE CEN7FRLM OF WICH IS DESCRIBED AS FOLLON5:-
BEGINNING AT SAID POINT $;• 7HENCE NORTH 895933' NEST A 915TAN6E OF 10.01 F£ET. THENCE
RETRACING 5A10 LINE SOUTH 895933" EAST A 9157ANCE OF 102.59 FEET,• 7HENCE SOUTH 217233'
EAST A DISTANCE OF 19.68 FEET TO A POINT HENCEFORTH REFERRED TO AS POINT r,' 771FNCE
RE7RACING SA10 LINE NORTH 217233" NEST A DISTANCE OF 56:62 FEET 7HENCE NORTH 173436"
EAST A DISTANCE OF 147.58 FEET THENCE NOR79 57'45'45" EAST A DISTANCE OF, 42.19 FEET TO A
POINT HEI✓CEFOR771 REFERRED TO AS POINT G; SAID POINT BEING THE 7FRMINUS 17HEREOF.
EXCEPTING 7HEREFROY THAT PORTION L PING WHIN PARCEL 1.
014
EXHIBIT A - LEGAL DESCRYP71ON
AZUSA LIGHT & WATER EASEMENT FOR ELECTRICAL PURPOSES
PAGE 2 OF 3
PARCEL 5
A STRIP OF LAND 1.380 FEET WIDE, /WE CENTERLINE OF { IDY /S DESCRIBED AS FOLLOWS,
COMMENCING AT SAID POINT f ;• THENCE NORTN 895921' AUT A DISTANCE OF 7.07 FEET TO THE
TRUE POINT LV 8EG/NN1NG,• INENCE RETRACING SAID UNE 50071-1 895921' EAST A DISTANCE OF
17.70 FEET TO THE TERMINUS THEREOF
EXCEPTING THEREFROM THAT PORTION LYING M711 -1N PARCEL 4.
PARCEL 5
A SIR -1P OF LAND 14.37 FEET Gf9OE, 711E CENTERLINE OF WICH 1S DESCRIBED AS FOLLOWS:•
COMMENCING AT SAID POINT G THENCE NORTH 7148'42" AFST A DISTANCE OF 6.96 FEET TO THE
TRUE POINT OF B£GINN/NG,• THENCE RETRACING SAID LINE SOUTH 7148'42" EAST A DISTANCE OF
15.80 FEET TO THE TERM/NUS 741,rREOF. '
EXCEPTING THEREFROM THAT PORAON L )INC WHIN PARCEL 4.
PARCEL 7
A SM10 OF LAND 19.50 FEET WIDE, THE CENTERLINE OF MY10H 15 DESCRIBED AS FOLLOWS
COMMENCING AT SAND POINT G;THENCE SOUTH 893745" WEST A DISTANCE OF 700 FEET TONE
IRU£ POINT OF 8E9NN/NG, THENCE RETRACING SA10 LINE NORTH 895746' EAST A DISTANCE OF
30.85 FEET,• THENCE SOVIH 714152" EAST A DISTANCE OF 10.15 FEET TO 711E TERMINUS THEREOF.
EXCEPANG 7HEREFROY THAT POR77ON L MG M711IN PARCEL 1
PARCEL 8
A STRIP OF LAND 1437 FEET WIDE, 7HE CEN7TRL/NE OF WHICH IS DESCRIBED AS FOLLOWS
COMMENCING AT 5A19 PONT 71;• 7HENCE SOUTH 714842" EAST A DISTANCE OF 5.00 FEET TO THE
7RUE POINT OF B£QNN/NG,• 71-IENCE RETRACING SAID LINE NOR711 714842" WEST A DISTANCE OF
22.20 FEET TO INE TERMINUS THEREOF.
EXCEPANG THEREFROM THAT PORTION L PING WITHIN PARCEZ I
PARCEL 9
COMMENQ'NG AT 711E SOUTHEASTERL Y CORNER OF SA/D PARCEL 1,• ALSO BEING A POINT ON THE
KgS7ERL Y RIGHT—OF—WAY OF CI7RUS AME/✓UF THENCE ALONG SA10 R1GHT—OF—WAY NORTH 0077130"
EAST A DISTANCE OF 445.91 FEET,• 11ENCE LEA MING SAID R16)YT--OF—WAY NORTH 8958:30" WEST A
D15TANCE OF 63.18 FEET TO )HE TRUE PONT Or B£IeNNI - 711LNCE NOR711 8959:33" WEST A
DISTANCE OF 60.16 FEET,' )HENCE 501171 0OV027 WEST A DISTANCE OF 55.63 FEET,• THENCE
SOUTH 8959:33" EAST A DISTANCE OF 17.24 FEET 7110ME NOR1N 000027" EAST A DISTANCE OF
45.63 FEET,- THENCE 5OU7H 8959:53' EAST A DISTANCE OF 62.91 FEET,• 7HENCE NORTH 0077027'
EAST A DISTANCE OF 10.00 FEET TO THE )RUE POINT OF BEGINNING.
015
EKBIT A - LEGAL DESCREMON
AZUSA LIGHT & WATER EASEMENT FOR ELECTRICAL PURPOSES
PAGE 3 OF 3
f
PARCEL 10
8EG/NN/NG AT THE NORTHWESTERL Y CORNER OF SA/D PARCEL 1, ALSO BE/NG A PONT ON THE
500716RL Y RIGHT-OF-WAY OF 57H AkEXIZ,, THENCE ALONG 7HE 1VOR7HE7L Y ZINE'OF SAID PARCEL 7
NORTH 895910" EAST A DISTANCE OF 2988 FEET, THENCE LEAKA(G SA19 NOR7HERL Y UNE SOUTH
4670%!7" EAST A DISTANCE OF 160.97 FEET,• THENCE SDU)71 OOYI050" EAST A OTSTANCf- OF 303.68
FEET,• THENCE NORTH 804238" WEST A DISTANCE OF 20.27 FEET TO THE lW£STER6Y LINE OF SAID
PARCEL 1, THENCE ALONG SA10 AES7FRL Y LINE NOR)71 OOD050" WEST A DISTANCE OF 291.88 FEET,•
7Hf1V6E NORTH 4670'47" BLEST A DISTANCE OF 17928)T,-7' TO THE POINT OF 8EGTNNING
j i I
0
a
EXfIIBIT B - MAP
AZUSA LIGHT & WATER EASEMENT FOR ELECTRICAL PURP-OSES
0
1
PARCEL 8
0
NOO 02'140#36.49'
N89 57 46 E 7,09'
PO/NT 'C'
N/00 02'14 %Y 55.J4. I I I
A-71'40'18
R=10.00 '
L=12.51'
IPAI 14840
Z-Jaga lssJpa;oa ,yzj
10AA 091 3
PARCEL 2
15 L6
PARCEL 3
L4 J
POINT £'
DETAIL: NOT TO SCALE
9f FT 1 Or 2 9'f£Ts
LINE TABLE LINE TABLE (continued)
AV. RARING LENGTH NO_ BEARING LENGTH
L1 N0001'30£ 5.36' L11 N21012-U0Y 19.68'
L2 N7141 520// 10. 15' L 12 N89 59 21 {Y 17.70'
L3 N71 '49'420Y 22.20' L 13 N89 58 30 #`/', 63. 18'
r L4 N89 59 ;uof 24.01 ' L 14 A69 59 :UOIY 80,16'
L5 N00 00 27 E 0.91 ' L 15 NV0 00'27 E 55.63'
L6 N89 59 :33?Y 13 73' L 16 N89 59 '33 iY 17.24'
L7 A69 59 'J3 IN 92.56' L 17 NOD 00'27 E 45.63'
, L8 N21 °12 '33lY .36.94' L 18 N89 59 330IY 62.91
5
L9 A57 45'45 E 42. 19' L 19 ICO 00 J27'f- 10.00'
L 10 N71 4842 X 15.80' L20 N(89 °59 33?Y 10.0/'
—PO/NT D' TRUE PO/NT OF 9EG/NN1NC
PARCEL 9
PARCEL 1
N89 57'46 E 2385' L10
,pbl POINT 'G' PARCEL 6
Saga Jftjp.08.0 1--s /T L9 L 14 L 13 09
'PA oll
I
a
L_ �LL2
ARE7 �L 17PAREL 4
L__
L11L6 PARCEL 9
44'50 %Y71=1
POINTJMJ• PARCEL 5
L20� a
N24'44 50 fl
55.49 ' I i POINT B'
kj��I II ��-PARCEL 1
!moi
zz ll rl SXb dSJ.P q:3a -4
zziN l l
�e
Y
4P NTW
PARCEL 2
SEE DETAILLEFT
� I � POINT E'
I L 4 TRUE PO OF BEG/NN1NG
L 1 5429' PARCEL 1
NB9 58 :30 fY V 467.24'
0 100 200 POINT OF BEGINNING
I
Ic
11
0
B - MAP
1
N89 °59'10 E OQb m l
28.88' '
J
k
PO/NT OF 8EG1NN/M
I
i iiffi it
o
AVt 100'501Y 68.77'
N89 59'10 E 5.00'
N00 00'50%Y 15.40'
N89 59'10 E 5.00'
I PARCEL 10
Itio i
99-7 2 Or 2 9*T75
i
I
I
I
Ido i pm
I 1
I /T A89 SB'29 E 9. 10'
::-- NOO 01 ;31 ?Y 17.00':
i
N77 :53 !?6"If JO. 6J'
i
I
7
of 0
TO
FROM:
DATE:
AZUSA
LIGHT
7 I '
CONSENT CALENDAR
i
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL y
JOSEPH F. HSU, DIRECTOR OF UTILITIES' N
JULY 28, 2008
SUBJECT: ADDITIONAL COMPENSATION TO BLACK & VEATCH
RELATED TO ADDITIONAL WORK FOR THE
WATER TREATMENT PLANT UPGRADE AND
CONSTRUCTION MANAGEMENT ENGINEERING
r
i
RECOMMENDATION
EXTRA COST
f MEMBRANE
ION PROJECT
It is recommended that the Utility Board/City Council approve the addition ofi$326,800 to pay
for additional and anticipated consulting services by Black & Veatch (B&V)i Corporation for
providing Construction Management Engineering Services for Canyon Membrane Water
Treatment Plant (WTP) Upgrade and Expansion Project, project WVF-207.
BACKGROUND
i
At its regular meeting held on November 20, 2006, the City Council approved the award of
contract for consultant construction management services for the membrane treatment upgrade
and expansion of the Canyon Filtration Plant to Black & Veatch Corp. for an amount of
$1,147,000. The construction of the plant improvements is now underway, and completion of the
project, which was begun January 29, 2007, is projected to extend beyond the original project
completion date of September 20, 2008. During the course of the project, various additions and
changes to Black & Veatch's Scope of Services were necessary for execution of the construction
project. Included as an attachment to this Agenda Item is a letter from Black & Veatch
elucidating those changes and the costs associated with each change.
The reasons for requesting those changes to the Black & Veatch's contract by Staff are, by item:
Contractors delays
Construction work has proceeded at a slower pace than was 'anticipated at the time the Scope of
Services for the Black & Veatch contract between the City and B&V was executed. Some of the
!
019
delays in completion are excusable which has added extra time to the contractor's completion
—date and -some -delays -are being -negotiated -with -the -contractor -to -determine -whether -or -not those— -
delays are subject to liquidated damages. At this time a substantial completion date at the end of
December is anticipated. _
Items beyond the original scope
Shop drawing submittal review
At the time the scope of work for the B&V contract was established, B&V estimated that 280
shop drawings submittals was a reasonable number upon which to base their proposal. As of the
end of May 2008, 350 shop drawings have been submitted for review. B&V is projecting that
400 submittals will be made by the completion of the project. Review of the additional 120
submittals is estimated to require 960 staff hours totaling $134,400 in additional funding.
Contractor Requests for Information (RFI's)
At the time the scope of work for the B&V contract was established, B&V estimated that 240
RFI's was a reasonable number upon which to base their proposal. Based upon the number of
RFI's actually made by the contractor, B&V is projecting that 320 submittals will be made by
the completion of the project. Review of the additional 80 submittals is estimated to require 240
staff hours totaling $27,600 in additional funding.
Resident Engineer Additional Time
At the time the scope of work for the B&V contract was established, B&V estimated that 3500
hours of fulltime onsite inspection for 20 months of construction was a reasonable number upon
which to base their proposal. Because the duration of the project has now been extended from
September 20, 2008 to the end of December, 2008, B&V has estimated that an additional 544
hours of onsite inspection will be required, which will also require an additional 26 hours of
clerical support project. The additional onsite inspection hours and clerical hours totals $80,000
in additional funding.
Items additional to the original scope
Additional coordination with Local Agencies
At the time the scope of work for the B&V contract was established, it was not anticipated that a
City building permit would be required for any portion of the construction project nor was
extensive involvement with the Los Angeles County Fire Department review process anticipated
by B&V.
1. Onerations & Maintenance (O&M) Buildine oermit
It was the determination of the City Attorney that the Operations and Maintenance Building
portion of the WTP project required a Building Permit issued by the City of Azusa Building
Department. Coordination meetings within B&V, and between B&V, the City of Azusa, the LA
County Fire Department, and Willdan Engineers, along with submittals and resubmittals over the
course of approximately six months were required to secure the Building Permit. The additional
020
scope of work required to procure the Building Permit required 180 hours of work by B&V at an
--additional-cost-of-$35-700.--- — — -- - -} - - - --
2. Deferred Joist Submittal
i
As part of the Building Permit procurement process, the supplier and subcontractor installing the
roofing system, Quincy Joist and Allied Steel respectively, submitted joist designs for review by
the City of Azusa and Willdan Engineers. Subsequent phone meetings between B&V and the
City and Willdan and resubmittals were required, for which 18 hours of additional scope work at
an additional cost of $3,000 was required.
3. CMU (Cement Mortar Units) Block Jamb Reinforcement
' 1 I
In their submittals to B&V for review, SSC omitted some reinforcement which B&V
subsequently noted on the drawings, but which SSC failed to correct in the field.! When the field
corrections were made in the filed, B&V was required to submit drawings showing a design
change. This additional scope work required 20 hours of staff time at an additional cost of
$3,000.
4. Chemical Feed Facility and Membrane Building r
i
I
At the time the scope of work for the B&V contract was established, it was not anticipated that
submittals to Los Angeles County Fire Department would be required for the Chemical Feed
Building plans and the underground fire protection system before the building sprinkler system
would be reviewed. Submittals and resubmittals of plans and meetings were required between
B&V and the Fire Department to obtain the necessary plan approvals. This additional scope
work required 95 hours of staff time at an additional cost of $14,100. 1
Industrial Waste Discharge Permit and Annexation
During the construction of the WTP improvements, which include a connection
Angeles County Sanitation District sanitary sewer in San Gabriel Canyon Road,
discovered that a portion of the WTP, originally owned by Azusa Valley Water
not been annexed to the Sanitation District. At the direction of Water Division s
on the work of following the annexation process to get the site annexed to the S
and also to procure the discharge permit from the Sanitation` District. This addit.
will require a total of 203 hours of staff time to complete at an additional cost o:
1
The total additional budget required to accomplish the above delineated tasks is
at a total additional cost of $326,800. 1
FISCAL IMPACT
I
an addition of 28.5% to the
additional (cost will be paid
i
The fiscal impact of this additional cost is $326,800 which represents
final cost of Black & Veatch's construction services contract. This
from Account 32-80-000-721-7130/72107C-7130. i
Prepared by:
o the Los
it was
�ompany had
aff, B&V took
nitation District
anal scope work
$28,400.
741 staff hours
021
Chet Anderson, Assistant Director- Water Operations
022
15615 Alton Parkway, Suite 300
Irvine, California 92618
Tel: (949) 753-0500
Fax: (949) 7531252
Azusa Light and Water
Canyon Filtration Plant
and Expansion Project
� � I
I
1
BLACK&-VEATCH-
Black & Veatch Corporation
i
i I
B&V Project 140777
Membrane Treatment Upgrade ; B&V File A.2
1 J 4's 2008
Mr. Chet Anderson, P.E.
Assistant Director of Utilities — Water Operations
Azusa Light and Water
729 N. Azusa Ave.
Azusa, CA 91702
Dear Mr. Anderson:
RECEIVED une
i
IJUN 16 290E
1 I
AZUSA TNT & WATFR
Subject: Engineering Amendment Request
i
1
The purpose of this letter is to request a contract amendment for engineering services that are
outside the scope of our existing contract.
Contractor Delays
j Construction on the Canyon Filtration Plant is progressing with work on all major structures
under way. As of the end of April 2008, SSC is estimated to have achieved the following level
of completion of the project work:
w SSC Contract Time Spent 73%
I
w SSC Contract Budget Spent 76%
w Original Contract Completion September 20, 2008
w Current Contract Completion October 18, 2008
The construction work is proceeding at a slower pace than planned. As a result, it is likely the
j actual completion of the project will be delayed until late December, 2008 as shown in SSC's
latest construction schedule update.
B&V Engineering Budget Status
f
The engineering services provided by the Black & Veatch team are progressing ih response to
� the contractor's construction work. Through the end of April 2008, the engineering team has
expended $957,710 of the available $1,147,000 construction phase budget (about 83%). There is
I currently about $189,289 remaining in our contract budget for all construction piase engineering
work.
;
I �
Work not included in our original scope of work has been and will be required) to complete the
construction of the project. The following table as well'as Appendix A attached summarize
construction phase engineering work that is outside the scope of our current contract.
i
Black d Veatch Corporation -15615 Afton Parkway, Suite 309 • Irvine, California 92618 USA • Telephone 949.753.0500 - Fax 949.753.1252
023
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File I.6
Engineering Amendment -Request (Updated) June 4a', 2008
Summary of Additional Work
Summary
Construction of the project is progressing steadily and the overall quality of the contractor's
work has been satisfactory. Engineering work has been performed and will continue to be
required that is outside our current scope of work and contract. We request an amendment to our
contract for the additional work items summarized in the proceeding table.
Please contact us if you have questions or require additional information. We are prepared to
meet with you at your convenience to discuss these matters further.
CC: Joseph Hsu, P.E.
Very truly yours,
BLACK & VEAT,,C\\HH
2!5�L
N —
Steven N. Foellmi, P.E.
Vice President/Project Manager
Page 2
024
Additional
Hours
Total
TC�Description
dost
C c
Task 1- Shop Drawing Submittal Review
960
$134,400
u
� �
m
P7
Task 2 - Contractor Request for Information
240
$27,600
5n
O
Task 3 - Resident Engineer Additional Time
570
$80,000
Task 4 - Additional Coordination with Local Agencies
403
$56,400
a
V
U) °.�
Task 5 -Industrial Waste Discharge Permit and Annexation
203
$28,400
z
Task 6 - CDPH Operations Plan
365
$0.00
Total Additional Budget Requested
2,741
$326,800
Summary
Construction of the project is progressing steadily and the overall quality of the contractor's
work has been satisfactory. Engineering work has been performed and will continue to be
required that is outside our current scope of work and contract. We request an amendment to our
contract for the additional work items summarized in the proceeding table.
Please contact us if you have questions or require additional information. We are prepared to
meet with you at your convenience to discuss these matters further.
CC: Joseph Hsu, P.E.
Very truly yours,
BLACK & VEAT,,C\\HH
2!5�L
N —
Steven N. Foellmi, P.E.
Vice President/Project Manager
Page 2
024
Azusa Light and Water B&U Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File I.6
Engineering Amendment Request (Updated) i -lune 4`s, 2008
a
APPENDIX A
i
Background Information
Page 3
025
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File I.6
Engineering Amendment Request (Updated). _ June 4`h 2008
ITEMS BEYOND ORIGINAL SCOPE
TASK 1 - SHOP DRAWING SUBMITTAL REVIEW
The scope of work in our contract identifies the number of first time shop drawing submittals
that are budgeted to establish the level of effort and cost for the project. Specifically, our
contract scope of work, Task 4 states:
"A budget for the review of two hundred and eighty (280) submittals has been
established. The budget includes provisions for an initial review and a second review of
each submittal."
The budget of 280 first-time submittals was reached at the end of November 2007. At that time
SSC estimated that this represented 70 percent of the total submittals that they had planned for
the project. Therefore, B&V estimates that we will receive 120 additional first-time submittals
by the end of the project above our budgeted amount. As of the end of May 2008, we have
received and reviewed 350 fust -time submittals, indicating that the 400 first-time submittal
estimate is reasonable.
The engineering effort and cost in our original contract were calculated based on an average of 8
hours per first-time submittal with provision for one re -submittal. The estimated 120 additional
first-time submittals will increase the engineering effort by 960 hours and the cost for shop
drawing review by $134,400.
TASK 2 - CONTRACTOR REQUEST FOR INFORMATION (RFI)
The engineering team has to date responded to 240 RFI's from SSC, which is equal to the total
number of RFI's budgeted in our scope of work (240). We estimate that the total number of
RFI's for the project will be approximately 320, which is 80 RFI's beyond the scope of work.
We estimate the 80 additional RFI's will require 240 hours of effort and will result in an
increased cost of $27,600.
TASK 3 - RESIDENT ENGINEER ADDITIONAL TIME
B&V is currently providing full time, on-site inspection of the construction activities. The
commencement date for the project was January 29, 2007. Our contract scope of work states:
"A total of 3500 hours for the project construction have been budgeted, which accounts
for full-time inspection over the 20 months construction duration of the project."
The 20 months of on-site resident inspection services equates to a project completion date of
September 20, 2008. Based on the current progress of the contractor, we anticipate that full time
inspection services will be required through December 2008.
Page 4
026
r
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File I.6
Engineering Amendment Request (Updated) June 40', 2008
' I
We estimate that an additional 544 hours of on-site inspection and 26 hours of clerical support
will be needed. As such, we ate requesting additional budget in the amount of $80,000.
� I
NEW SCOPE ITEMS I
TASK 4 - ADDITIONAL COORDINATION WITH LOCAL AGENCIES
There have been several issues associated with the O&M building that have resulted in additional
work for the engineering team that was not anticipated or budgeted under our original scope of
work. In addition, in order to get the fire sprinkler submittal approved for the Chemical Feed
Facility and Membrane Building, approval of these building plans is required by the Los Angeles
County Fire Department (Building Plan Check Unit). Approval of the underground fire
protection piping by the LACFD Sprinkler Plan Check Unit is required•as well. In addition to
meeting with both the LACFD Units, several sets of full size drawings were prepared and
submitted. Work on these out of scope items has proceeded at the specific request of ALW.
a. 0&M Building Permit. B&V pursued the O&M Building perinit preparing
several submissions and attending coordination meetings. As a result,
revisions to the contract documents were required. Obtaining [he permit
required three separate submissions and responses by B&V and reviews by
both the Los Angeles County Fire Department and the City of Azusa. Each
submission required revisions to both the drawings and the spkifications by
structural, civil, and architectural disciplines as well as a letter'expWning how
review comments had been addressed. Each submission also required 4-6 sets
of 40-50 full sized drawings, signed and sealed by engineers of record, and 4-
6 copies of revised specifications. Coordination meetings within B&V and
between B&V, the Fire Department, and Willdan plan checkers were required
to resolve all comments. The out of scope work associated with this task
resulted in 180 hours and an increased cost of $35,700.
b. Deferred Joist Submittal. The joist design was deferred to construction phase
because the structural steel (Allied Steel) and joist suppliers (Quincy Joist)
were to coordinate and provide the joist design. Upon submission of the joist
and structural steel drawings by Quincy Joist and Allied Steel Through B&V,
Willdan provided comments requiring additional work and coordination
between the joists and structural steel. This additional work was completed
after two submissions and several phone calls to the City of Azusa (Rob
Keyes) and their plan checker (Willdan — Kirk Miya) by B&V j Coordination
between B&V, SSC, Allied Steel, Quincy'Joist, the City of Azusa, and
Willdan was required to obtain and deliver the connect drawings and provide
additional design memos. A wet stamped and signed approval; on each part of
the submittal (drawings, calculations, and letter) by B&V's engineer of record
was required for the first submission and a signed approval note was required
Page 5
027
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File 1.6
Engineering Amendment Request (Updated) June 0, 2008
on the second submission. The out of scope work associated with this task
resulted in 18 hours and an increased cost of $3,600.
c. CMU Block Jamb Reinforcement. SSC omitted several CMU block vertical
jamb bars during installation, even after B&V marked this correction during
the submittal phase. When this construction error was discovered by B&V's
Resident Engineer, SSC proceeded to drill and epoxy missing bars into the
slab. This "design change" was noted by the inspector, which resulted in City
of Azusa requiring a wet -stamped and signed design and approval of drill &
epoxy method by B&V engineer -of -record Jim Richter before SSC could
proceed with the work. The out of scope work associated with this task
resulted in 20 hours and an increased cost of $3,000.
d. Chemical Feed Facility and Membrane Building. The entire Chemical Feed
Facility and the chemical feed area of the Membrane Building contain fire
sprinklers. COSCO Fire Protection is the fire sprinkler designer and supplier.
In the process of getting their fire sprinkler submittals approved by LACFD,
COSCO Fire Protection was told that the building plans and the underground
fire protection piping needed to be approved before the fire sprinkler
submittals would be reviewed. B&V met with both the LACFD Building Plan
Check Unit (Manny Mosrefi) and the LACFD Fire Sprinkler Plan Check Unit
(Hossein Atef) to obtain requirements. Four sets of full-sized plans were
submitted to the Building Plan Check Unit and they were approved. B&V
met with the Building Plan Check Unit twice to discuss and clarify comments
and concerns. After the first submission (four, full-sized sets of plans) to the
Sprinkler Plan Check Unit, comments/corrections were provided. These
comments were addressed and a response letter and four revised full-sized sets
of plans were submitted to the Sprinkler Plan Check Unit on 05/20/08. On
05/28/08, the Sprinkler Plan Check Unit approved the plans. B&V met with
the Sprinkler Plan Check Unit three times to discuss/clarify comments and
concerns. The out of scope work associated with this task resulted in 95 hours
and an increased cost of $14,100.
We estimate that 403 hours will be required to complete this task, resulting in an increased cost
of $56,400. We have been tracking our costs in a separate accounting phase number, which has
not been billed to ALW.
TASK 5 - INDUSTRIAL WASTE DISCHARGE PERMIT AND ANNEXATION
B&V has been in communication with the LA County Sanitation District regarding the discharge
permit and annexation required for the Sanitary Sewer Pump Station and 6 -inch Force Main
connection to LACSD's existing manhole. LACSD requires an Industrial Waste Discharge
Permit for connecting to their existing sewer. Annexation paperwork for the Canyon Filtration
Plant had to be filed as part of the permit process. Along, with the permit application, several
Page 6
028
I
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File I,6
Engineering Amendment Request (Updated) I
I June 4h, 2008
drawings, flow calculations, process descriptions, flow meter specifications, and (chemical
containment calculations were required. Three different application clarification I packages were
sent to LACSD to address comments received by the three different people who reviewed the
application. The latest application clarification package was provided on May 6,i 2008.
i
i I
ALW had the responsibility for preparing the annexation paperwork, but on January 31, 2008
requested that B&V complete the package and submit to LACSD on behalf of ALW. The permit
application was approved and the permit was provided on 05125/08. Final approval of the flow
meter and sampling facilities will be required by LACSD. The annexation work is complete as
well. B&V's work on the discharge permit and annexation was not included in our original
scope of work. We have been tracking our costs in a separate accounting phase number which
has not been billed to ALW. Our estimate of the total cost for this work includes, an allowance to
coordinate submission and review of the flow meter and sampling equipment. It may be
necessary to re-evaluate the requested budget at a later date, depending on LACSD requirements.
tl
To date, we have spent 188 hours on this task and estimate 15 additional hours needed for
completion, resulting in a total of 203 hours. As such, we are requesting additional budget in the
amount of $28,400. We have been tracking our costs in a separate accounting phase number,
which has not been billed to ALW.
TASK 6 - CDPH OPERATIONS PLAN
The California Department of Public Health (CDPH) requires an Operations and Maintenance
(O&M) Manual prior to startup. This work is listed as a Supplemental Service in our Scope of
Work and was not budgeted under our original contract. B&V has prepared similar CDPH
Operations and Maintenance Manuals. The work would include the following:
Prepare Draft O&M Manual in accordance with CDPH requirements.
mr Submit Draft O&M Manual to ALW and CDPH for review and comr,
Incorporate comments into Draft O&M Manual. i
w Re -submit Draft O&M Manual to DPH for provisional approval.
Provide CD containing electronic files of Draft O&M Manual to operations staff for them
to finalize and update periodically as required by CDPH.
t
It should be noted that a CDPH O&M Manual would require considerably more effort than the
Process Operations Procedure required in the Request for Proposal (RFP).
j
We estimate that a total of 365 days will be required to complete the CDPH Operations Plan and
are requesting additional budget of $0.00 for this task. 1
1
I
Page 7
029
A=u. Light 6 Water
Construction Phase Engineering Support Services for the Canyon Filtration Plant Membrane Treatment Upgrade and Fipanelon
Ammendment Request Labor Estimate
..
-�
�'project
Senior'}'
Project
�;Stefl
a
T?�ect ;,
':Meeh.
..
Geolech:
Structural
"�I&C
Eletldcel
Total BW
Pro eel em: Task Desai gone - - `'
Manager
Spectellsl
Fn kreer
En Ineer
''•Rep.:'
Architect
Engineer
Engineer
EngMaer
Engineer
Engkroor
Cledwl
Moura'
Construction Management Services for the Canyon Fllmillon Plant Mambrano
Treatment Upgrade and Expansion Project
Office Activities
Task 1 — Shop Drawing Submittal Review (Note 1)
0
40
80
460
0
30
0
10
60
60
60
160
960
Task 2— Contractor Request fm lniormaron(Note 2)
0
0
10
150
0
10
10
0
10
10
10
30
240
Task 3— Resident Engineer Additional Time(Note 3)
0
0
0
0
544
0
0
0
0
0
0
26
57
Task 4 — Additional Coordination with Local Agencies
4.1 — O&M Building Permit
4. 1.1 — First Submittal (Inc. MVV; and Permit Package)
0
0
5
35
0
10
5
0
10
0
10
15
90
4.1.2 — Second Submittal (Inc. Mtgs and Permit Package) -D66
0
0
5
35
0
10
5
0
10
0
10
15
90
4.1.3 — Third Submittal (Inc. Mtge and Permit Package)
0
0
5
35
0
10
5
0
10
0
10
15
9C
4.2 — Deleted Joist Submittal
4.2.1 — First Submittal (Inc. Mlgs and Coordination)
0
0
0
4
0
0
0
0
3
0
0
2
9
422 — Second Submittal (Inc. Mlgs and Revisions)
0
0
0
4
0
0
0
0
3
0
0
2
4.3— CMU Block Jamb Reinforcement
0
0
0
13
0
0
0
0
2
0
0
5
2(
4.4 — Chemical Feed Facility and Membrane Bu0ding
4. 1.1 — First Submittal to Bldg Dept. (Inc. M193 and Permit Package)
0
0
2
18
0
0
0
0
0
0
0
5
25
4.12 — First Submitted to Sprinkler DepL One. Mills and Permit Package)
0
0
2
111
0
0
0
0
0
0
0
5
2
4.1.3 — Second Submitral to Sprinkler Dept. (Inc. Mlgs and Permit Package)
0
0
2
16
0
0
0
0
0
0
0
5
2
4.1.4 — Third Submittal to Sprinkler Dept. (Inc. Mtgs and Permit Package)
0
0
2
13
0
0
0
0
0
0
0
5
2
Subtotal - Task 4
0
0
23
193
0
30
15
0
38
a
30
74
403
Task 5 —Industrial Waste Discharge Perris and Annexation .
5.1 — IWDC Permit
5.1.1 — IWDC Permit Application
0
0
20
33
0
0
15
0
0
0
0
5
73
5.12— First Clarification Package
0
0
10
20
0
0
5
0
0
0
0
5
40
5.1.3— Second Clarification Package
0
0
5
is
0
0
5
0
0
0
0
5
30
5.1.4— Third Clarkston Package
0
0
s
20
0
0
0
0
0
0
0
5
30
5.1.5 — Review of Flow Meter and Sampling
0
0
5
10
0
0
0
0
0
0
0
0
15
5.2— Annexation Application
0
0
0
15
0
0
0
0
0
0
0
0
15
Subtotal -Tasks
0
0
4S
113
0
0
25
0
0
0
0
20
20
6 — CDPH Operetions Plan
10
100
200
35
0
0
0
0
0
0
0
20
38
Subtotal- Office Activities
L3
10
140
358
951
544
70
50
10
108
70
100
330
2.741
t0
140
358
951
544
70
50
10
108
7ftI
100
770
T 41
Notes:
(1) Based on a total of 120 SubmillMs.
(2) Based an a total 0180 RFis.
(3) Services Required for Additional Time Beyond 20 month Contract
W
Q
TO:
1� 13"
i
HONORABLE CHAIRPERSON AND MEMBERS
BOARD AND AZUSA CITY COUNCIL ',
I
CONSENT CALENDAR
OF THE AZUSA UTILITY
i
i
JOSEPH F. HSU, DIRECTOR OF UTILITIESS /
DATE: JULY 28, 2008 �$
� I
SUBJECT: ADDITIONAL COMPENSATION TO SSC CONSTRUCTION, INC. FOR
AGGREGATED ADDITIONAL WORK AND JUSTIFIED TIME EXTENSION
REQUIRED ON PROJECT WVF-207 CANYON FILTRATION PLANT
MEMBRANE TREATMENT UPGRADE AND EXPANSION
1 i
RECOMMENDATION
It is recommended that the Utility Board/City Council approve Change Order No. 11 for the
addition of $9,454.31 and extension of time to complete by 24 calendar days to the SSC
Construction, Inc. contract for construction of Project WWF -207, Canyon (Filtration Plant
Membrane Treatment Upgrade and Expansion.
BACKGROUND
At their November 20, 2006 regular meeting, the Azusa City Council accepted the bid of SSC
# Construction, Inc. to construct Project WWF -207, Canyon Filtration Plant Membrane Treatment
Upgrade and Expansion. Subsequent to starting work on th6 construction of WVF-207 changes
j to the work and to the contract amount and time of completion are required.
This Change Order No. 11 represents an aggregation of SSC Change Order Requests (COR) 03,
14, 16, 17, 18, 19, 20, 21, 22, and 23 plus time extension for approved Rain Days. An overview
of COR 03, 14, 16, 17, 18, 19, 20, 21, 22 and 23 is provided below. A detailed justification/
explanation of each COR is provided by reference to an attached Black & Veatch letter and
Change Order Form. I I
i
COR 03: Modification of 30 -inch reservoir bypass piping; finished water reservoir inlet; and
i
Membrane Building effluent piping: Changes due to differing site conditions. $47,919.14
COR 14: Plug valve sizing modification: Change valves size from 8 -inches to 10 -inches.
$2,537.06
COR 16: Credit for deletion of 6 -inch force main from project site to sewer manhole in San
Gabriel Canyon Road: Force main installation being done by others. ($114,069.13)
I
031
COR 17: Filter fabric and granular fill deletion below evaporation ponds: Onsite material used.
($16,410.11)
COR 18: Addition of future 18 -inch pipeline to the contract: Advantageous to install now rather
than later. $23,653.57
COR 19: O&M Building — new stove receptacle: A receptacle for an electric stove was installed
in the O&M Building kitchen. $3,760.48
COR 20: Membrane Building — submersible sump pump (SP -1) electrical installation: Cable and
conduit required to provide power to sump pump SP -1 from MCC -2. $8,167.02. Add 1 day.
COR 21: Sanitary sewer pump station discharge revisions: Los Angeles County Sanitation
District required modifications to the discharge piping and manhole cover and installation of a
flowmeter. $26,230.16. Add 2 days.
COR 22: O&M Building fan (PF -1) installation revision: moved PF -1 to the east side of the
garage due to space limitations in design location. $4,472.49. Add 1 day.
COR 23: Finished water reservoir inlet pipe modification: Modifications done at the request of
the membrane manufacturer. $23,192.83. Add 2 days.
Rain Days: 17 days granted due to rain and inability to perform substantive work.
FISCAL IMPACT
This request has a fiscal impact of $9,454.31 to be funded from the CIP Budget Account for CIP
Number 72107C. Time of completion has been extended by 24 calendar days.
Prepared by:
Chet Anderson, Assistant Director- Water Operations
032
BLACK & VEATCH
, huildingeworldoldiNerence-
ENERGY WATER INFORMATION 00 VE R N M ENT
City of Azusa
B&V Project 1,40777
Canyon Filtration Plant Membrane Treatment Upgrade and B&V File A.5
Expansion July 7'h, 2008
Mr. Chet Anderson, P.E.
Assistant Director of Utilities- Water Operations
Azusa Light & Water
729 N. Azusa Avenue
Azusa, CA 91702 M
Subject: Change Order No. 11
Dear Mr. Anderson:
Black & Veatch (B&V) is furnishing this letter and the supporting documentation in response to
Change Order No. 11 for SSC Change Order Requests (COR) 03, 14, 16, 17, 18, 19, 20, 21, 22,
and 23 as well as approved Rain Days to date.
I
COR 03: Modification of 30 -inch Reservoir Bypass Piping, Finished WaterlReservoir Inlet
Piping, And Membrane Building Effluent Piping
Design modifications were required as a result of SSC field investigation or survey of existing
30 -inch and 24 -inch pipelines on May 15, 2007 (Ref. RFI �#72 and RFI #74), which indicated
that the existing FW pipelines were found closer to the Membrane Facility ;and Washwater
Equalization Basin compared to what were indicated in Ithe record drawings and Contract
Drawing C003.
+ I
As a result, there are two parts in this change order which consist of 1) redesign of the 30 -inch
reservoir bypass piping, Finished Water Reservoir inlet piping, and Membrane Facility effluent
piping, and 2) revised pipeline and tie-in connections for reroute of portion of the existing 30 -
inch and 24 -inch FW pipelines. The initial change order estimate including bonds, insurance,
etc., was $57,851.79. Based on subsequent correspondences including a detail cost breakdown
from SCC and subcontractor Western Waterworks Supply,' detailed cost review, and feedback
received during a conference call with Azusa Light & Water (AL&W), SSC; and B&V, on
September 10, 2007, SSC submitted a revised change order including bonds,) insurance, etc.
totaling $47,919.14. B&V has reviewed the revised Change Order No. 3 and recommends
acceptance, including changes to the contract price.
� I
COR 14: Plug Valve Sizing Modification (SET -V-1612 & SET -V-1622)
Plug valves SET -V-1612 and SET -V-1622 were specified in the Valve Schedule (Specification
01640) as being 8 inches. The size of the pipe to which these valves are attached is 10 inches;
therefore, it was necessary to change the valve size from 8 inches to 10 inches. The 8 -inch
valves had already been purchased, so upon return a restocking fee was required. iThe total cost
for this modification is $2,537.06. B&V has reviewed COR 14 and recommends acceptance of
the changes to the contract price, j
I I
r �
i
I ' I
I
Black & Veatch Corporalion . 15615 Alton Parkway, Suite 300 • Irvine, California 92618 USA - Telephone 949.753.0500. Fa I x 949.753.1252
o ci
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File I.6
SSC Retention Reduction Request
COR 16: Credit for Deletion of 6 -incl¢ Force Main from Ten Feet Inside Property Line to
Sewer Manhole
Azusa Light and Water requested that the portion of the 6 -inch Sanitary Sewer Pump Station
Force Main from ten feet inside the property line to the connection at the existing sewer be
deleted from the contract. The pipe material was to be ductile iron or C900 PVC as selected by
the contractor. The total deduct for this deleted work is $114,069.13. B&V has reviewed COR
16 and recommends acceptance of the changes to the contract price.
COR 17: Filter Fabric and Granular Fill Deletion Below Evaporation Ponds
SSC requested that the granular fill required beneath the Evaporation Ponds be deleted on the
sloped banks and substituted with onsite material below the floor. SSC also requested that the
filter fabric beneath the deleted/substituted granular fill be deleted from the work. The granular
fill and filter fabric surrounding the foundation drain will remain unchanged. The total deduct for
this deleted work is $16,410.11. B. &V has reviewed COR 16 and recommends acceptance of the
changes to the contract price.
COR 18: Addition of Future 18 -inch SWP Pipeline to the Contract
Azusa Light and Water requested that a future portion of the 18 -inch SWP pipeline be added to
the contract. This section of pipe is located south of the Pretreatment Facility between the
metering pad and the butterfly valve. The total cost for this additional work is $23,653.57. B&V
has reviewed COR 18 and recommends acceptance of the changes to the contract price.
COR 19: O&M Building — New Stove Receptacle
Azusa Light and Water requested a stove receptacle to be installed in the O&M Building kitchen
for a:
GE ProfileTM 30" Free -Standing Electric Convection Range
POWER / RATINGS
Amp Rating at 208V 40
Amp Rating at 240V 40
KW Rating at 208V 10.1
KW Rating at 240V 13.4
The total cost for the additional work is $3,760.48. SSC has requested a 1 day extension to the
contract duration to complete this work. B&V has reviewed COR 19 and recommends
acceptance of the changes to the contract price and duration.
COR 20: Membrane Building — Submersible Sump Pump (SP -1) Electrical Installation
Cable and conduit were required to provide power to submersible sump pump (SP -1) and
appurtenances in the Membrane Building from MCC -2. The total cost for the additional work is
$8,167.02. SSC has requested a 1 day extension to the contract duration to complete this work.
B&V has reviewed COR 20 and recommends acceptance of the changes to the contract price and
duration.
034
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File I.6
SSC Retention Reduction Request
COR 21: Sanitary Sewer Pump Station Discharge Revisions
The Sanitation Districts of Los Angeles (LACSD) IndustrialWaste Discharge Permit was
received in May 2008. Obtaining the permit required modifications to the discharge piping on
the Sanitary Sewer Pump Station (SSPS) and manhole cover. LACSD required a flow meter to
be installed on the discharge end of the SSPS to measure flow before it entered ttie existing
sewer system. Discharge piping was lengthened to allow for adequate straight -pipe distance
upstream and downstream of the flow meter. The piping downstream of the flow. meter was
modified to ensure the meter would be fully submerged during recording events.: LACSD also
required a 3" hole to be drilled.in the manhole cover to provide access for their sampling
equipment. The total cost for the additional work is $26,230.16. SSC has requested a 2 day
extension to the contract duration to complete this work. B&V has reviewed COR 021 and
recommends acceptance of the changes to the contract price and duration.
I
COR 22: O&M Building Fan (PF -1) Installation Location Revision
Fan PF -1 is located in the O&M Building Garage. After the joists and structural 'steel were
installed, it was determined that PF -1 would not fit in the space provided on the west side of the
building and should be moved to the east side of the building. Adequate space was available on
the east side of the building and it was noted that the east side was preferred as it :would result in
a noise reduction for surrounding neighbors. Moving PF -1 to the east side of the garage resulted
in electrical and masonry revisions. The total cost for the additional work is $4,472.49. SSC has
requested a 1 day extension to the contract duration to complete this work. B&V ihas reviewed
COR 022 and recommends acceptance of the changes to the contract price and duIration.
COR 23: Finished Water Reservoir Inlet Pipe Modification
After the 30 -inch finished waster reservoir inlet pipe was installed, Siemens noted that the
membrane system required backpressure to work properly. To achieve the required
backpressure, the reservoir inlet height was raised to a level Above that of the membrane skids.
B&V requested that SSC submit costs for two options to raise the inlet height. Ini Option 1, the
installed inlet would be removed down to the floor of the reservoir. A new 24 foot spool of
flange -by -plain -end 30 -inch cement -mortar -lined steel pipe would be installed in its place. In
Option 2, the installed inlet would remain in place. The three horizontal Tide Flex check valves
would be removed and replaced with blind flanges, The 30" by 16" reducer would be cut and
the 16 -inch vertical Tide Flex check valve removed. The four check valves would be returned
for a credit, minus a restocking fee. A new 15 foot 30 -inch cement -mortar -lined steel pipe would
be welded to the top of the installed 30 -inch steel pipe. Option 2 resulted in a lower cost and
SSC has proceeded with the work to avoid delays during testing and disinfection of the reservoir
and interior piping. The total cost for the additional work is $23,192.83. SSC has requested a 2
day extension to the contract duration to complete this work.1 B&V has reviewed COR 023 and
recommends acceptance of the changes to the contract price and duration.
Rain Days
To date, SSC has been granted 17 calendar days due to rain. �B&V recommends acceptance of
the additional time to the contract duration.
035
Azusa Light and Water B&V Project 140777
Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File 1.6
SSC Retention Reduction Request
Summary,
The table below provides a summary of the Change Order Requests and Rain Days included in
this package. After including the credits, the final change order value is $9,454.31 and the total
number of calendar days requested is 24. B&V recommends approval of these additions to the
contract price and duration.
f1equest
to e(intra'd
Cost
1
COR 03
$47,919.14
0
COR 14
$2,537.06
0
COR 16
-$114,069.13
0
COR 17
-$16,410.11
0
COR 18
$23,653.57
0
COR 19
$3,760.48
1
COR 20
$8,167.02
1
COR 21
$26,230.16
2
COR 22
$4,472.49
1
COR 23
$23,192.83
2
Rain Das
$0.00
17
TOTAL
$9,454.31
24
Please contact us if there are any questions.
BC:jsh
Attachments
Very truly yours,
BLACK & VEATCH
Steven N. Foellmi, P.E.
Project Manager
4
036
I
AZUSA LIGHT AND WATER
CHANGE ORDER
I
Change Order No.
Date July ,7, 2008
Agreement Date J.
Sheet 1 0
Owner: Azusa Lieht and Water t
Project: Canyon Filtration Plant Upgrade and Expansion
Contractor: SSC Construction Inc.
t
The following changes are hereby made to the Contract Documents
l
ADDI DEDUCT
1. Modification of 30 -inch Reservoir Bypass Piping, Finished
$47,919.14
Water Reservoir Inlet Piping, And Membrane Building
Effluent Piping due to existing piping locations
(Reference SSC Change Order Request 03)
2. Plug Valve Sizing Modification (SET -V-1612 & SET -V-1622)
$2,5371.06
from 8 -inch to 10 -inch. j
1
(Reference SSC Change Order Request 14)
3. Credit for Deletion of 6 -inch Force Main from Ten Feet Inside
i
i $114,069.13
Property Line to Sewer Manhole from Contract t
(Reference SSC Change Order Request 16)
4. Filter Fabric and Granular Fill Deletion Below Evaporation
$16,410.11
Ponds from Contract
(Reference SSC Change Order Request 17)
5. Addition of Future 18 -inch SWP Pipeline south of the +
I
$23,653157
Pretreatment Area to the Contract per ALW request
(Reference SSC Change Order Request 18)
i
6. Addition of Stove Receptacle in O&M Building per ALW
i
$3,760148
request
(Reference SSC Change Order Request 19) �
7. Membrane Building Submersible Sump Pump (SP -1) l ble
I
$8,167.'02
and conduit revisions
(Reference SSC Change Order Request 20)
I
037
8. Sanitary Sewer Pump Station discharge revisions per LACSD $26,230.16
request (pipe revision and flow meter addition)
(Reference SSC Change Order Request 21)
9. O&M Building Fan (PF -1) Installation Location Revision to $4,472.49
accommodate space and noise requirements
(Reference SSC Change Order Request 22)
10. Finished Water Reservoir inlet pipe modifications to meet $23,192.83
revised backpressure requirements of membrane equipment
supplied by Siemens/Memcor
(Reference SSC Change Order Request 23)
NET COR AMOUNT (ADD) $9,454.31
Justification
1. (Reference SSC Change Order Request 03) SSC field investigations/survey of existing
30 -inch and 24 -inch pipelines on May 15, 2007 (Ref. RFI #72 and RFI #74) indicated
that the existing FW pipelines were found closer to the Membrane Facility and
Washwater Equalization Basin compared to what were indicated in the record drawings
and Contract Drawing C003. The findings resulted in changes to the contract drawings.
2. (Reference SSC Change Order Request 14) Plug valves SET -V-1612 and SET -V-1622
were specified in the Valve Schedule (Specification 01640) as being 8 inches. The size
of the pipe to which this valves are attached is 10 inches; therefore, it was necessary to
change the valve size from 8 inches to 10 inches.
3. (Reference SSC Change Order Request 1.6) Azusa Light and Water requested that the
portion of the 6 -inch Sanitary Sewer Pump Station Force Main from ten feet inside the
property line to the connection at the existing sewer be deleted from the contract.
4. (Reference SSC Change Order Request 17) B&V approved SSC's request that the
granular fill required beneath the Evaporation Ponds be deleted on the sloped banks and
substituted with onsite material below the floor. B&V approved SSC's request that the
filter fabric beneath the deleted/substituted granular fill be deleted from the work. The
granular fill and filter fabric surrounding the foundation drain will remain unchanged.
5. (Reference SSC Change Order Request 18) Azusa Light and Water requested that a
future portion of the 18 -inch SWP pipeline be added to the contract. This section of pipe
is located south of the Pretreatment Facility between the metering pad and the butterfly
valve.
6. (Reference SSC Change Order Request 19) Azusa Light and Water requested that a
stove receptacle be installed in the O&M Building kitchen.
Mai
i
7. (Reference SSC Change Order Request 20) Conduit and cable required to provide
power to submersible sump pump SP -1 in the Membrane Building.
I
8. (Reference SSC Change Order Request 21) During their review of the Industrial Waste
Discharge Permit, LACSD responded that a flow meter was required onithe discharge of
the Sanitary Sewer Pump Station. Piping was revised to ensure the flowmeter would
flow full when in service.
I
9. (Reference SSC Change Order Request 22) O&M Building Fan (PF -1) did not fit in the
location shown on the drawings due to unforeseen space limitations resulting from
installation of the joists and structural steel. PF -1 i was moved to the feast side of the
building. '
10. (Reference SSC Change Order Request 23) During review of the Siemens Membrane
Submittal, revised backpressure requirements were provided by Siemens. The reservoir
inlet pipe was raised to meet these requirements.
I
11. To date, SSC has been granted 17 calendar days due to rain.
I
SUMMARY
Change Orders
CHANGE TO CONTRACT PRICE
Original Contract Price
Current Contract Price Adjusted
By Previous Change Order(s)
Contract Price due to this
Change Order will be (increased)
New Contract Price, Including this Change Order
CHANGE TO CONTRACT TIME:
Contract Time Will Be Increased by
Date of Completion of All Work
$ 9.454:31 Add (Net)
t I
$ 35.905 500.00
36,260,52 7 w
I
n !
(Calendar Days)
t
November 11.12008
t !
039
$
APPROVED:
Owner: Azusa Light & Water Contractor: SSC Construction, Inc.
By:
Chet Anderson t orized Signature
Engineer: Black & Veatch
BcT
Steven N. Foellmi, Project Manager
()40
' I
I
j CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
{ j
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JULY 28, 2008
I
SUBJECT: EXTENSION OF THE PROFESSIONAL SERVICE AGREEMENT WITH
WREN & ASSOCIATES FOR ELECTRIC CONSTRUCTION INSPECTION
SERVICES AT THE ROSEDALE DEVELOPMENT
RECOMMENDATION !
I
It is recommended that the Utility Board/City Council approve a one year extension of the
professional service agreement between the City of Azusa and Wren & Associates for inspection
of the electric conduit & facility installations at the Rosedale Development.
BACKGROUND
At its January 23, 2006 meeting, the Utility Board/City Council approved a Professional Service
Agreement with Wren & Associates in the amount of $ 30,000 to perform inspection of electric
conduit & facility installations by Azusa Land Partners (ALP), developerli for Rosedale
Development. In February 26, 2007, the agreement was amended by an additional $70,000
increasing the total agreement to $100,000. The agreement, needs to be extended to allow for
continuing inspection services of key electric infrastructure installation this fiscal year. No
additional funds are being requested since funds of $25,000 are still available in the purchase
order.
FISCAL IMPACT i
The request has no fiscal impact on the City of Azusa. The a, ount paid to Wren by the City will
be reimbursed by ALP.
Prepared by: D Ramirez, Assistant Director - Electric Operations
041
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE
I
DATE: JULY 28, 2008
SUBJECT: CONTRACT TERM EXTENSIONS FOR WREN & ASSOCIATESiAND
CIVILTEC ENGINEERS FOR ROSEDALE PROJECT INSPECTION, AND
ADDITION OF $33,000 TO CIVILTEC ENGINEERS' CONTRACT BUDGET
FOR ROSEDALE PROJECT INSPECTION
RECOMMENDATION
It is recommended that the Utility Board/City Council approve: (1) extension of Wren &
Associates contract for Rosedale Project Inspection from June 30, 2008 to June 30, 2009; (2)
extension of Civiltec Engineers contract for Rosedale Project inspection from June 30, 2008 to
June 30, 2009; and (3) addition of $33,000 to the Civiltec Engineers contract for Rosedale
Project inspection services. 1
BACKGROUND j
At prior regular meetings, the Utility Board/City Council has approved the award f contracts for
water facility construction inspection services for the Rosedale Project to Wren & Associates and
to Civltec Engineers. Both consultant contracts terminated on June 30, 2008. Because the
Rosedale project has been delayed by financial issues, the installation of water facilities has been
extended into fiscal year 2008-2009. The inspection done by Wren & Associates is reimbursable
to the City in full by Azusa Land Partners (ALP), and the Rosedale inspection done by Civiltec is
partly reimbursable by ALP to the City.
t
In addition, the extension of the Civiltec contract for Rosedale inspection requires an increase of
i $33,000 to the contract amount, which increases the total budget for the Civiltec inspection
services from $350,000 to $383,000. 1
FISCAL IMPACT
The fiscal impact will be $33,000 for the increase to the Civiltec purchase order.; Funding will
initially come from the Water fund, with reimbursements from ALP as previously described.
Prepared by: Chet Anderson, Assistant Director - Water Operations
I
042
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE�
I
DATE: JULY 28, 2008 l
I
SUBJECT: APPROVAL TO SEEK BIDS FOR THE INSTALLATION OF PROJECT W-245
A&B, WATER MAIN REPLACEMENT IN VINCENT AVENUE, WEST
COVINA AND SUNSET AVENUE, AZUSA j
RECOMMENDATION
I j
! It is recommended that the Utility Board/City Council approve the advertisement for, and
solicitation of bids for Project W-245 A&B, Water Main Replacement in Vincent Avenue, West
Covina, and Sunset Avenue, Azusa, and delegate authority to the City Manager to approve the
award of the contract for the main replacements to the lowest and responsible bidder.
i i I
BACKGROUND
The Water Division has a program of replacing water mains that are experiencin
leaks and that are, for various reasons, experiencing flow and'pressure problems.
replaced in this project have both leak problems requiring constant repair and i
than is optimal for current residential area standards. Also, the mains to be replac
streets are in streets designated by the Public Works Departments of the Citil
West Covina as streets to be resurfaced this fiscal year. This project will
Division to lessen the probability of leaks within the newly paved streets. In al
475 linear feet of 8 -inch water main and 15 water services will be replaced in S
Azusa, and 550 linear feet of 8 -inch water main and 5 water services in Vincent
Covina.
I
I There is an urgency to getting this project underway as soon as possible because
repaving that will be done on both streets.
FISCAL IMPACT
problems with
he mains to be
liver less flow
I in the named
of Azusa and
ow the Water
approximately
iset Avenue in
venue in West
the imminent
There is no immediate fiscal impact to the bidding of this project. This item will be funded from
CIP Budget No. 32-80-000-721-7130/72107B-7130
Prepared by: Chet Anderson, Assistant Director- Water Operations
043
i
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
d ,
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JULY 28, 2008
SUBJECT: ADDITIONAL COMPENSATION TO SYSTEMS AND SOFTWARE FOR
IMPLEMENTATION OF IVR AND OUTBOUND DIALING
RECOMMENDATION j
It is recommended that the Utility Board/City Council approve the addition of ($26,000 to the
Systems and Software contract purchase order. '
! I
BACKGROUND t{
At its June 28, 2004, regular meeting, the Utility Board approved a Contract Purchase Order with
Systems and Software for the purchase and implementation of the enQuesta Customer
Information System, Call Recording, Interactive Voice Response (IVR), and Outbound Dialing.
During 2005 — 2007 certain invoices were charged to the contract purchase order that should
have been charged to the blanket purchase order. At this time, the contract limit of $652,100 has
been reached and no additional payments may be made to Systems and Software unless the
contract amount is amended. This request for approval of additional compensation to complete
these projects is made to comply with AMC section 2-517(h) which requires contract
amendment amounts greater than $10,000 be approved by the City Council. Approval of an
additional $26,000 to the existing contract will authorize the Finance Department to continue to
pay Systems and Software up to $652,100 in aggregate.
r
FISCAL IMPACT
This request has no additional fiscal impact. The approved additional payments to Systems and
Software will be funded from the already approved Capital Improvement Budget Account 31-80-
711-903-7142/71104A-7142. j
Prepared by: Karen Vanca, Assistant Director- Customer Care & Solutions
044
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL I
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JULY 28, 2008 ,
I
SUBJECT: ADDENDUM TO OPTION AND SETTLEMENT AGREEMENT!RE CEMEX
SLOPE FAILURE
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the attached Addenldum to Option
and Settlement Agreement in substantial form, subject to approval of the final language by legal
counsel. The original Option and Settlement Agreement dated December 18, 2007, was entered
into by and among Northrop Grumman Systems Corporation,�CEMEX Construction Materials,
L.P., Azusa Land Reclamation Company, Inc., and the City of Azusa.
BACKGROUND I
The Option and Settlement Agreement was executed as a result of a slope failure after a heavy
rain storm on February 28, 2006 on Northrop's property adjacent to CEMEX's gravel mining
site. Slope failure also took a portion of the City's water line. Some interim measures were
taken including the installation of a temporary waterline above ground while negotiations took
place which eventually resulted in the execution of the Option and Settlement Agreement.
Engineering studies to design proper drainage and slope stability pursuant to the Option and
Settlement Agreement have determined that additional property needs to be acquired from
Northrop by Azusa Land Reclamation, Inc. The attached agreement sets forth the terms and
price of the additional property to be transacted.
045
FISCAL IMPACT
There is no fiscal impact to the City of Azusa as the transaction is between Northrop and Azusa
Land Reclamation, Inc.
Prepared by: J. Hsu
I
This Addendum to Option and Settlement Agreement (this "Addendum"), dated for
reference purposes as of July 23, 2008, is made with reference to that certain Option and
Settlement Agreement (the "Agreement") dated as of December 18, 2007, and is entered into by
and among the parties to the Agreement, Northrop Grumman Systems Corporation, a Delaware
corporation ("Northrop Grumman"), Azusa Land Reclamation_ Company, Inc., a California
corporation, ("ALR"), CEMEX Construction Materials, L.P., 'a Texas limited partnership
("CEMEX"), and the City of Azusa, a California municipal corporation (the "City','), each a
"Party" and any two or more collectively referred to herein as "Parties".
RECITALS
A. Under the terms of the Agreement, ALR obtained an option to purchase the
Option Property, as defined therein, consisting of approximately 28,613.2 square feet, located in
the City of Azusa ("City"), Los Angeles County, California, and more particularly !described in
Exhibit "A" attached to the Agreement and generally shown on the Plot Plan attached to the
Agreement as Exhibit "B". The Option Property consists of a portion of a larger parcel of real
property owned by Northrop Grumman situated in the City of Azusa, California, at 1110 West
Hollyvale Street. (The Northrop Grumman property located at 1110 West Hollyvale Street,
together with all other Northrop Grumman property located adjacent to any of the CEMEX
Property, as defined below, is referred to herein as the "Northrop Grumman Property").
+ I
C. Since the date of the Agreement, there has been further erosion of portions of the
southern part of the Northrop Grumman Property. By this Addendum, the parties wish to
provide for the expansion of the option granted to ALR to include the Option Property together
with additional property (collectively, the "Expanded Option Property") on the terms and
conditions contained in this Addendum and subject to the terms and conditions set forth in the
Agreement, except as modified herein. j
D. The "Commencement Date" under the Agreement was December 27, 2007.
i
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
contained herein, the Parties agree as follows:
AGREEMENT
1. Defined Terms. All capitalized terms not defined herein shall have the meaning
set forth in the Agreement.
2. Reconciliation of Terms and Conditions. Except as expressly modified by this
Addendum, the Agreement remains in full force and effect. General provisions contained in the
Agreement will, unless the context indicates otherwise, be equally applicable to thils Addendum.
In the event of any conflict between the terms of this Addendum and the Agreement, the terms of
this Addendum shall control. Exhibits to this Addendum are lettered consecutive to the Exhibits
to the Agreement.
047
3. Expanded Option Property. The Option Property under the Agreement shall be
deemed to consist of the Expanded Option Property as described more full in the legal
description and plot plan attached hereto as Exhibit "F" and Exhibit "G."
4. Additional Consideration. As consideration for the expansion of this Option
Property by Northrop Grumman, CEMEX shall pay to Northrop Grumman the additional sum of
NINETEEN DOLLARS AND TWENTY TWO CENTS ($19.22) per square foot for the
additional 3,902 square feet by which the size of the Option Property is increased, for a total
payment of SEVENTY-FOUR THOUSAND NINE HUNDRED NINETY SIX DOLLARS AND
FORTY-FOUR CENTS ($74,996.44), together with interest thereon at the rate of ten percent
(10%) per annum from and after September 1, 2008, if the additional consideration is not paid on
or before that date. Such additional consideration shall be payable within fifteen (15) days of the
execution of this Addendum. Interest shall be payable as provided herein regardless of the date
(whether before or after September 1, 2008) upon which drainage improvements have been
completed. Such additional consideration shall be the sole and absolute property of Northrop
Grumman, shall not be credited against the Purchase Price, and shall not be refunded under any
circumstances.
5. Amendment of Agreement Section 1. Grant of Ontion. Section 1 of the
Agreement is hereby amended to read in its entirety as follows:
I . Grant of Option. Northrop Grumman hereby grants to ALR and ALR
shall have the right and option, and, subject to the terms and conditions herein contained,
the obligation, to purchase the Expanded Option Property (in its entirety) from Northrop
Grumman upon the terms and subject to the conditions set forth in this Agreement
("Option") during the Option Term (as hereinafter defined). For the purposes of this
Agreement, December 27, 2007, shall hereinafter be referred to as the "Commencement
Date."
6. Modification of Quitclaim Deed. The form of quitclaim deed attached as Exhibit
"C" to the Agreement (the "Quitclaim Deed") shall contain the legal description in the form to
be attached as Exhibit "F" pursuant to Section Error! Reference source not found., in lieu of
the legal description originally provided in Exhibit "C".
7. Drainage Plan. The Parties agree that CEMEX provided a written drainage plan
(entitled Azusa North Slope Remedial Grading Project Specifications) including hydrology
calculations dated May 27, 2008 that is deemed acceptable to Northrop Grumman pursuant to
Section 10 of the Agreement, subject to further review and approval by Northrop Grumman if
there are further changes for any reason. No change in the drainage plan will be acceptable to
Northrop Grumman in the event that the distance (the "Buffer Zone") between the top of any
portion of the slope from the horizontal surface and the Expanded Option Property boundary
with the Northrop Grumman Property is less than 50 feet. In the event the earthen berm is
moved, for any reason, so that the Buffer Zone is less than 50 feet at any point, the Agreement
and this Addendum shall be further amended to provide for the enlargement of the Expanded
Option Property, in a rectangular configuration with boundaries parallel to the existing easterly
and southerly boundaries of the Northrop Grumman Property, so as to provide for a 50 foot
Buffer Zone, and CEMEX shall pay to Northrop Grumman the sum of NINETEEN DOLLARS
AND TWENTY TWO CENTS ($19.22) per square foot for the additional square footage by
2 048
3 i
1
which the Expanded Option Property is so enlarged. As of the date of this Addendun, the City
has not made a determination as to whether the Drainage Plan is acceptable. As a'result, it is
hereby acknowledged and agreed that the remainder of Section 10 of the Agemeept remains to
be performed by CEMEX, including the requirement to obtain said written approval from the
City and the obligation of CEMEX to diligently commence and complete all construction,
improvements, and other actions required by the drainage plan. j
8. Drainaize Swale. CEMEX and ALR agree to maintain the drainage' Swale to the
west free of debris and graded so as to permit drainage from the Northrop Grumman parking lot
into the swale consistent with the calculations accompanying the May 27, 2008 plan, and shall
provide Northrop Grumman with a recordable covenant providing for the maintenance thereof in
the form of Exhibit H attached hereto.
9. Option Property Taxes and Assessments. Allocation of the real property taxes
pursuant to Section 20 of the Agreement shall be based upon the square footage of the Expanded
Option Property as set forth in Section 3 above3.
J
IN WITNESS WHEREOF, the Parties hereto have executed this Addendum as of the
date set forth in the initial paragraph above.
No:
a
0
Dal
Azi
Cal
Lo
Dal
1hrop Grumman Systems Corporation,
I
elaware corporation
I
t
1
I
Its: �I
e: i
1
rsa Land Reclamation Company, Inc.,
a
ifomia corporation
I
Its:
e: '
I
I
1
1
I
I
-3-
CEMEX Construction Materials, L.P., a Texas
limited partnership
Date:
The City of Azusa, a California municipal
corporation
By:
F.M. Delach, City Manama
Date:
-4 050
EXHIBIT LIST
I
Exhibit "F" Legal Description of Option Property
Exhibit "G" Plot Plan of Option Property
F
Exhibit "H" Recordable Covenant regarding Drainage Swale
t
I
I �
I
I
i +
Ii` 1
I
i
i
f
051
EXHIBIT "F"
LEGAL DESCRIPTION
"EXPANDED OPTION PROPERTY"
THE EASTERLY 250.00 FEET OF PARCEL 10 OF PARCEL MAP NO. 7580, IN THE
CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER
MAP FILED IN BOOK 81, PAGES 65 THROUGH 68 INCLUSIVE, OF PARCEL
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY,
LYING SOUTHERLY OF THE NORTHERLY LINE OF LOT 46 OF SUBDIVISION
NO.2 OF AZUSA LAND AND WATER COMPANY, IN SAID CITY, COUNTY AND
STATE, AS SHOWN ON MAP RECORDED IN BOOK 43, PAGE 94 OF
MISCELLANEOUS RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF
SAID COUNTY, AND AS SHOWN ON EXHIBIT "G" ATTACHED HERETO AND
MADE A PART HEREOF.
LAND AREA = +/- 32,515 S.F. = 0.75 ACRES
052
V = 40'
NORTHROP GRUMMAN PROPERTY
N'LY LN OF LOT 46, SUB. NO. 2
AZUSA LAND AND WATER COMPANY
ADJUSTED PROPERTY LINEA M.R. 43/94
• 250.00 FT
0
0
tc!
al
Fli EXPANDED OPTION PROPERTY
32,515.0 SF
-N
W'
—501 ROW -
89'47'26"W
�.Q FT ALLEY
. .. .......
C-1
ALA WATE
i
SCHEDULED ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE
DATE: JULY 28, 2008 I
i
SUBJECT: UTILITIES DEPARTMENT RESERVE POLICIES
RECOMMENDATION
1
It is recommended that the Azusa Utility Board/City Council deliberate and adopt attached
resolution approving augmented reserve policies for electric and water utilities.
I 1
BACKGROUND
The Utility Board/City Council adopted via resolution the cuIrrent reserve policies for the
electric and water utilities in February 2006. The utilities' reserve policies provide for reserves
for specific utilities financial requirements. The current categories of reserves and their
rationale are summarized below: I
Electric Utility: ,
1. Operating Reserve — It provides 60 days of operating cash flows
2. Capital Reserve — It provides money to carry out identifiable capital projects when
projects are not financed via bond issuances
3. Contingency Reserve — It provides reserve for three specified categories of
contingencies: (a) San Juan outage contingency; (b)jelectric utility "net short" power
procurement contingency; and (c) electric utility legal and regulatory risk contingency.
Water Utility
1. Operating Reserve — It provides 60 days of operating cash Flows
2. Capital Reserve — It provides money to carry out identifiable capital projects when
projects are not financed via bond Issuances
3. Contingency Reserve — It provides reserve for specified contingencies.
051
The reserve amounts for the utilities are set forth in the attached documents and are
summarized here:
'ReservePolrc, `T a_,_
EI@ctnc ". ,-,
, Water;" ,
Operating Reserve
60 davs / $6.9 million
60 days / $3.46 million
Capital Reserve
$3.0 million
$20.0 million
Contingency Reserve
$10.37 million
$1.54 million
Total
$20.27 million
$25 million
Existin Cash Reserve'
$20.27 million
$25 million
Unencumbered reserve
Zero
Zero
`Estimated cash balances at FY 2007-08 end not including
cash held by fiscal agents
Explanations for the above reserve amounts are set forth in attached Discussion Paper and
will be further presented at the Utility Board meeting.
FISCAL IMPACT
Since the Utilities Department currently has sufficient cash reserves to cover the proposed
policy for both electric and water utilities, the augmented reserve policy does not affect retail
rates nor does it affect the transfers from utility funds to the general funds.
Prepared by:
Bob Tang, Assistant Director of Resource Management
Cary Kalscheuer, Assistant to the Director of Utilities
Attachments:
1. Resolution
2. Augmented reserve policies
055
RESOLUTION NO.
i
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, SETTING CERTAIN
RESERVE POLICIES FOR THE 1 UTILITIES
MOVEMW319ROM
WHEREAS, the Utilities Department operates an electric and water utility on an
enterprise basis; and
WHEREAS, for the Utilities Department enterprises to be managed in a fiscally
responsible way, proper financial reserve policies must be set, monitored and updated from time
to time; and
WHEREAS, on February 27, 2006, the City Council acting in its capacity as the Utility
Board, adopted a resolution setting forth reserve policies for the electric and water utilities; and
WHEREAS, since February 27, 2006, changes have occurred in the operations, regulatory
and legislative environment that have impacted the way the electric utility operates making it
necessary to augment existing reserve policy to satisfy anticipated capital needs of the electric
utility.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, DOES HEREBY
RESOLVE AS FOLLOWS: j
SECTION 1. That the Utilities Department shall maintain the following reserve or fund
balance levels for financial planning and risk management purposes as set
forth below: i
i y
Reserve Policy Type
Electric
Water
Operating Reserve
60 days / $6.9 million
60 days / $3.46 million
Capital Reserve
$3.0 million
$20.0 million
Contingency Reserve
$10.37 million
$1.54 million
Total
$20.27 million
$25 million
SECTION 2. That the background for the above amounts is set forth in Exhibit A,
which is attached to this Resolution and made a part hereof.
SECTION 3. That these reserve levels shall be reviewed annually during the budget
preparation process, and if warranted,' changes will be proposed and made
through an updated resolution. °
056
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS 28th day of July, 2008.
Joseph Rocha, Mayor
ATTEST:
Vera Mendoza, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES
CITY OF AZUSA )
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 28th day of July, 2008.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Vera Mendoza, City Clerk
Q57
EXHIBIT A
i
UPDATED ELECTRIC UTILITY'S RESERVES AT FY 07-08 END
A. Operating Reserves
At 60 days of FY 08-09 electric operating budget = $ 41,897,000/365 x 60 = $6,887,178
1
Recommendation: Set operating reserves at $6.9 million '
B. Capital Reserves
t
Recommendation: Increase capital reserves by $0.5 million to $3.0 million to take into
account the labor and material cost escalation for electric infrastructure capital projects.
C. Contingency Reserves
CA San Juan Outage Contingency i
i
SteD 1: Calculate a minimum CONTINGENCY RESERVE for San .Tuan as follows:
Deem a credible San Juan forced outage scenario (45 -day in the summer season which has
happened before in summer 2001). Compute the San Juan replacement power cost for this
scenario valued at the immediately succeeding summer power prices. Subtract from replacement
power cost so determined the amount that can be recovered through the FCA.
The application of the above in today's environment will yield:
Total replacement power in MWhs = 45 days X 24 hours/day x 30 MW/hour = 32,400 MWhs
Summer 2009 power prices (as of July 15, 2008) _ $100/MWh
1
Total replacement power cost = 32,400 x 100 = $3,240,000
I �
Total recoverable from FCA = $750,000/2 = $375,000 ($750,000 is the quarterly FCA cap, 45 -
day FCA cap is half)
Minimum Contingency Reserve = $3,240,000 -$375,000 = $2,865,000
1
Step 2: Calculate a maximum CONTINGENCY RESERVE for San Juan as follows:
Deem a severe but credible San Juan forced outage scenario (180 -day in the summer season
which can happen with 20% probability in the next twenty years based on PNM survey of
underground coal mines. The severe scenario can happen if the underground mine catches fire).
Compute the San Juan replacement power cost for this scenario valued at the immediately
succeeding summer power prices. Subtract from replacement power cost so determined the
amount that can be recovered through the FCA. i
The application of the above in today's environment will yield:
1) M
Total replacement power in MWhs = 180 days X 24 hours/day x 30 MW/hour = 129,600 MWhs
Summer 2009 power prices (as of July 15, 2008) = $100/MWh
Total replacement power cost = 129,600 x 100 = $12,960,000
Total recoverable from FCA = $750,000 x 2 = $1,500,000 ($750,000 is the quarterly FCA cap,
180 -day FCA cap is twice)
Maximum Contingency Reserve = $12,960,000 - $1,500,000 = $11,460,000
Step 3• Determine the Appropriate Level of San Juan Contingency Reserve
Recommendation 1: Due to the purchase of San Juan forced outage insurance for FX 08-
09, the level of San Juan contingency reserve can be reduced by the amount covered by the
maximum insurance payout. Thus, San Juan outage Contingency Reserve will be reduced
by $4 million and set at $4 million.
Recommendation 2: Due to the completion of major San Juan capital improvement project
cycle, the capital project contingency reserve is reduced to zero.
Total San Juan Contingency Reserve is recommended to be $4 million
C.2 Electric Utility "Net Short" Power Procurement Contingency
The electric utility may have energy needs which are beyond the current level of energy supply.
This is a situation referred to as a "Net Short" power resource condition. In this case, the Electric
Utility needs to procure power at near term prices, which may not be supported by the current
retail rates.
Thus it is recommended that the following methodology be used to establish a CONTINGENCY
RESERVE amount for "Net Short" Power Procurement as follows:
Step 1• Calculate the Annual Net Short Requirements for the Immediately Three Years:
In our case, we are almost fully covered for 2008 from the energy requirement perspective; we
are not covered from the energy requirement for summer 2009 and 2011, thus:
Net short 2009 = 32,000 MWhs (20 MW on -peak power for June through September)
Net short 2010 = 32,640 MWhs (assume 2% growth for summer consumption)
Net short 2011 = 33,300 MWhs (assume 2% growth for summer consumption)
Choose the highest Net Short of the three years, i.e., 33,300 MWhs
This step can simply be accomplished by computing the average wholesale power cost of
059
Azusa's existing resource portfolio, which is about $55/MWh.
Step 3: Calculate the Cost above that can be supported by Azusa's retail rate for the Net
Short Procurement
This can be accomplished by computing:
1
Total Net Short procurement Cost at the Summer Prices in 2009 (as of July 15, 2008) = 33,300
MWhs x $100/MWh = $3,330,000
Cost that can supported by retail rates for Net Short = 33,300 MWhs x $55/MWh = $1,831,500
Cost not supported by existing retail rate for Net Short Procurement = 3,330,000 — 1,831,500 =
$1,498,500
Recommendation: Set Net Short Procurement Reserve at $1.5 million
C.3 Electric Utility Legal and Regulatory Risk Contingency
t
Global Warming and GHG Exposure: i
California legislature enacted AB32 in 2006 to regulate the greenhouse gas emissions with the
goal of achieving GHG reduction of about 25% by 2020 from the current GHG level. There is a
reasonable expectation that some type of carbon "tax" in the form of direct tax on sources of
GHG emissions or in the form of emission allowances that sources of GHG will need to procure.
While the cost of carbon tax is unknown at this time, but it is expected to be costly if 25%
reduction goal is to be achieved by 2020.
Based on some realistic estimates by industry experts, the cost of carbon tax could range from $5
to $50 per ton of CO2. Thus it translates into about $5/MWh'to $50/MWh cost adders in the
j electricity production cost from coal resources.
Staff recommends reserving some money to hedge against such carbon tax for two years at the
mid range of cost estimates, e.g.; $20/NM adder to the electricity production from San Juan.
I �
Two year electricity production from San Juan = 30 x 8760 z 0.85 x 2 = 446,760 MWh
Total targeted reserve = 446,760 x 20 = $8,935,200
Staff recommends that the targeted reserve be achieved in three years, thus reserving $3,000,000
each year for the next three years. This is the second year of the implementation and thus $6
million should be set aside. i
Accelerated Renewable Resource Procurement:
The City's current Renewable Portfolio Standard (RPS) approved in 2003 established a goal of
20% of retail energy consumption coming from renewable resources by year 2017. The RPS also
calls for retail rate increase of no more than 5% in achieving this goal. We currently have 7% in
renewable energy and are fortunate to procure it at below market prices.
I
ISM
However, since 2003 the state has accelerated the timeline in meeting the RPS goal of 20% from
2017 to 2010, seven years earlier than the previous legislation. There are also serious ongoing
discussions in the current legislative sessions to increase the RPS to 33% by year 2020. The
accelerated timeframe to comply with the state RPS goal and the potential increase in the
procurement target from 20% to 33% will pose financial challenges for the City to keep its rate
increases for renewable energy procurement under 7%. Thus a reserve for accelerated renewable
resource procurement is warranted as follows:
Step 1— Calculate the Remaining Amount of Renewable Resource to Meet the Target at 20%
and 33% RPS at Current Energy Consumption Level
FY 05-06 Retail Energy Consumption = 259,000 MWh
20% RPS requires 51,800 MWh and 33% RPS requires 85,470 MWh. Existing renewable
resources provide 16,500 MWh.
Remaining renewable energy to be procured to meet 20% RPS = 51,800 — 16,500 = 35,300 MWh
Remaining renewable energy to be procured to meet 33% RPS = 85,470 — 16,500 = 68,970 MWh
Step 2 — Compute the Cost Above City's Average Power Procurement Cost
City's average power procurement cost = $55/MWh
Current renewable resource costs (CPUC Market Referent Price) _ $105/MWh
Cost above City's average power procurement cost @ 20% RPS = (105-55) x 35,300 =
$1,765,000
Cost above City's average power procurement cost @ 33% RPS = (105-55) x 68,970 =
$3,448,500
Step 3 — Compute the Required Reserves Above 7% Retail Rate Increase
7% retail rate increase translates into about $1,820,000, thus
Reserves at 20% RPS = 1,765,000 —1,820,000 = ($55,000)
Reserves at 33% RPS = 3,448,500 —1,820,000 = $1,628,500
Staff recommends setting aside $800,000 (the medium of the high and low) in reserves explicitly
at this time to account for additional accelerated RPS requirement.
061
SUMMARY:
Staff recommends the Reserve targets to be updated to as follows:
Operating Reserve Account =
$
6,900,000
Capital Reserve Account =
$
3,000,000
San Juan Contingency Reserves
$
4,000,000
Net Short Procurement Reserve =
$
1,500,000
Renewable Procur. Reserve =
$
800,000
Legal and Regulatory Contingency=
$ 6,000.000
Total $22,200,000 ;
Projected Cash Reserves at FY End= $26,570,000 A
Unencumbered Reserves= $ 4.370,000
However, certain recent loans and anticipated interest transfers to the General Fund will reduce
the unencumbered reserves to ZERO and cause under funding of reserves. The transfers are as
follow:
Arrow Hwy/Azusa Ave property $5,300,000
Prior -year interest earnings transfer $1,000,000
$6,300,000
Revised Projected Cash Reser. At FY End = $20,270,000
Reserves under funded = $1,930,000
Staff suggests to under fund San Juan Contingency Reserve by $1,930,000 to balance the reserve
funding, thus San Juan Contingency Reserve will be funded at $2,070,000 instead of $4,000,000.
i
062
UPDATED WATER UTILITY'S RESERVES AT FY 07-08 END
A. Operating Reserves
It is recommended that the Water Utility keep sufficient liquidity in reserves to cover 60 days of
operating expenses plus annual debt service payment at all times.
At present time, the Water Utility's annual gross operating expense (including GF transfers as
"operating" expenses) as budgeted is about $20.8 million and thus 60 days of operating expenses
translate into about $3.46 million.
B. Capital Reserves
It is recommended that Water Utility keep sufficient reserves to equity fund well defined capital
projects that are not intended to be debt funded or only partially debt funded.
At present time, the Water Utility internally funds between $1.5 to $2.5 million per year in
capital projects out of its operating revenues and such funding is anticipated to increase to $4-5
million per year in the foreseeable future.
It is recommended that CAPITAL RESERVE ACCOUNT be created and be funded with $20
million as the target reserve level (approximate amount to internally fund 4 -years of expenses for
capital projects). The target cash reserve level should be reviewed and reevaluated annually and
adjusted accordingly. The Water Utility will prepare a list of capital projects with sufficient
details as part of the annual review process to enable the Utility Board to make informed decision
to adjust the target level of capital reserves the Water Utility should retain. The Water Utility will
also prepare a report detailing the level of funding that might be required as part of the support
services it receives from other divisions or departments of the City.
C. Contingency Reserves
Last year's severe drought condition caused the water utility to purchase substantial amount of
water from outside sources (Metropolitan Water District) at a considerable cost. While the added
purchased water costs were recovered through bi-monthly billing adjustments to the replacement
water cost adjustment factor, the loss of revenue from water conservation, estimated to be about
$1.6 million in Fiscal Year 2007-2008, was not recovered. This fact highlights the unanticipated
cost exposure the water utility faces during severe drought conditions. Although water utility was
able to sustain an operating loss this year, it is prudent to set aside some reserve for this type of
extraordinary loss in the future.
Thus, it is recommended that the Water Utility keep sufficient reserves on hand to provide a
contingency reserve for unanticipated losses that result from water conservation and possibly to
offset higher purchased water costs. It is recommended that $1.54 million be set aside and used
to cover operating budget deficits in the event revenues decline due to water conservation or it
become necessary to use additional resources for higher purchased water costs.
063
SUMMARY:
r
Staff recommends the initial Reserve targets for the Water Utility as follows:
Operating Reserve Account
$ 3,460,000
Capital Reserve Account
$20,000,000
Contingency Reserve
$ 1,540,000
Minimum Total Reserve
$25,000,000
Cash or cash equivalents on hand at the beginning of this fiscal year are adequate to fulfill the
above Reserve requirement. See below estimates:
1
Cash at Beginning of FY 2007-08Q1 $26,400,000
Est'd Operating Loss in FY 2007-0812 -$ 1,400,000
Est'd Cash at FY Ending 2007-2008 $25,000,000
Due to the large amount of capital expenditures expected ovei this next year, the existing
Reserve levels will require closer monitoring during Fiscal Year 2008-2009. The target Reserve
levels are to be maintained and updated every fiscal year during the approval processes for the
following fiscal year's budget. Any adjustment, including operating cost reduction and/or retail
rate increase, should be considered in order to maintain the reserve level for each component
described above.
Notes:
Excludes Cash with Fiscal Agents. See page 26 of FY 2006-07 Comprehensive Annual Financial Report (CAFR).
czl Includes $2.2 million in capital improvement project spending during FY 2007-2008 based on budget reports.
i
i
061
I �
t
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL 1
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JULY 28, 2008
SUBJECT: DROUGHT CHARGE
Water conservation ordinance 08-06 permits the City of Azusa to declare a water shortage which
prompts mandatory water conservation. Following a Phase II, III or IV water shortage
declaration, Azusa Municipal Code (AMC) section 78-511(b) calls for the City to impose a
"Drought Charge" on the first of the month following publication of the water shortage
declaration. This report provides information to City.Council[Utility Board on the derivation of
the drought charge pursuant to AMC Section 78-511. j
The ordinance specifies eligible expenses to serve as the basis for calculating the drought charge.
These expenses represent those costs related to implementation and enforcement of water
conservation ordinance and water conservation programs. The total of these expenses is expected
jto be $317,281 for upcoming fiscal year (see Exhibit A). The ordinance further provides a
sample formula to determine the'drought charge that is fair arid equitable across all customer
classes but delivers a conservation message to high consumption customers.
I 1
Even though the sample formula in the ordinance provides a guideline in determining the
drought charge, future consumption, length of water shortage program within the fiscal year, and
customers' usage change in response to drought charge will invariably affect the actual revenues
to be derived. However, the following assumptions were used to derive the drought charge:
1. Water Shortage above phase II will be in place for six (6) months during the fiscal year.
2. July 2006 to Dec 2006 consumption data was used as the basis to determine the
threshold above which drought charge is to be applied.
3. Customers will reduce consumption by 10% in response to declared water shortage
program.
4. Certain exemptions to commercial customers will be granted based on measurable
conservation actions which have been implemented recently.
i
065
5. Drought Charge is to be imposed for all consumption above 200% of the first Tier of the
respective customer's rates, e.g., above 36 hundred cubic feet (CCF) per month for
residential customers with meter size 1" or less. (Rate Schedule is attached for reference)
Based on the above assumptions the drought charge is calculated to be $0.70 per CCF. This
charge will be billed beginning September 1, 2008. Proceeds from this charge will be credited to
a separate revenue account as specified by the ordinance. When this revenue reaches the
projected costs ($317,281), drought charge will cease.
Staff estimated approximately 2070 residential and less than 200 commercial customers will be
subject to drought charge based on the FY 2006-2007 consumption data. Customers with higher
consumption above the respective threshold, will see a. higher total from the drought charge,
which is the principle of the drought charge.
FISCAL IMPACT
The drought charge was designed to be revenue neutral in that the revenue is to offset the
expenses associated with administering and implementing the drought program.
Prepared by
J. Hsu
C. Kalscheuer
B. Tang
K. Vanca
Exhibits:
Exhibit A — Cost Base for Drought Charge
Exhibit B — Commodity Rates and Rate Tiers
066
I
Exhibit A
FY 2008-2009 Drought Charge Cost Base
July 15, 2008
Eligible Expenses
Customer Information System Modification i
Personnel Costs
Half Time Lead Meter Reader
Part Time Drought Patrol Staff
Public Benefits Coordinator I
Vehicle Costs
Water Conservation Programs
Low Flush Toilet Program ;
Drip Program
Publications I
SGV Tribune - 7/2/2008 ,
Printing for 3 Direct Mailers
Postage for 3 Direct Mailers
Total Eligible Expenses:
$ 27,200
$
28,852
$
44,585
$
23,343
$
5,425
$
10,000
$
150,000
$
4,644
$
9,036
$
14,196
$
317,281
,
067
EXHIBIT B
Excerpt from Water Rate Schedule
Water Rate Schedule (continued)
B. COMMOMY CHARGE:
The commodity charge is measured in increments of cubic feet. One cubic foot is 7.48
gallons of water. Each unit of water is billed as 100 cubic feet or 748 gallons. One
hundred cubic feet is commonly referred to as CCF. Each .meter size is allotted a
quantity of water considered to be average for that size of service, units in excess of that
allotment represents a heavier use of the facilities of the water system, and therefore are
billed according to the commodity rate schedule.
Effective July 1, 2009
Rate r CCNU'
$0.924
$1.461
$0.924
$1.461
$0.924
$1.461
$0.924
$1.461
$1.134
Effective July 1, 2007
Service Size
units
Rate filer CCN)
—1"
0-18 ccf
$0.871
> 18 ccf
$1.378
1.5" — 2"
0-130 ccf
$0.871
> 130ccf
$1.378
3"- 4"
0-670 cef
$0.871
> 670 cef
$1.378
6" —12"
0-13,000 ccf
$0.871
> 13,000ccf
$1.378,
Golf Course
$1.07
Effective July 1, 2009
Rate r CCNU'
$0.924
$1.461
$0.924
$1.461
$0.924
$1.461
$0.924
$1.461
$1.134
i INFORMATION ITEM
I
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
i
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JULY 28, 2008
1
SUBJECT: ANNUAL ADJUSTMENT OF REPLACEMENT WATER COST ADJUSTMENT
FACTOR
The existing water rates for the Azusa Water Utility includeanannual adjustment factor called
the "Replacement Water Cost Adjustment Factor (RWCAF)." This adjustment factor was
implemented following the severe drought that occurred around 1990. The drought forced the
Watermaster to set the Operating Safe Yield in the San Gabriel Basin very low, which in turn
increased our replacement water costs far above those normally anticipated in a so-called normal
water year. 1
In 1992, the City Council adopted a rate methodology which included a RWCAF, which was
incorporated into the City's regular water tariff. This resulted from a water rate review in which
the replacement water cost component was analyzed separately. The adjustment factor that the
City Council adopted, and which was recommended by staff, is similar to the Fuel Cost
Adjustment Factor for electricity that was first introduced in the 1970's during the oil embargo
when energy costs fluctuated regularly due to the unpredictable oil supply and costs.
I
The RWCAF, by tariff adopted in 1992, shall be reviewed annually and adjusted accordingly.
Whenever an adjustment is required, the Director of Utilities shall inform the Utility Board/City
Council. By this memorandum, I am providing notice that because Watermaster has, for Fiscal
Year 2008-2009, set the Operating Safe Yield of the Main San Gabriel Basin at 180,000 acre-
feet from 210,000 acre-feet in FY 2007-2008, the purchase of replacement water will be
necessary. However, due to lower water demand being achieved through water conservation and
changes in the Watermaster application of rules governing replacement water purchases, it will
be possible to purchase less replacement w~ star at lower cost than prior years. Therefore, the
RWCAF will be adjusted downward to $0.0590for FY 2008'-2009 from $0.1306 charged in FY
2007-2008. The RWCAF was lowered�o_$0.0590 fective July 1, 2008.
Please call me if you have questions.
Prepared by:
Chet Anderson, Assistant Director- Water Operations
069
MONTHLY REPORT
JULY. 2008
PROJECT:
MEMBRANE TREATMENT UPGRADE OF THE CANYON FILTRATION PLANT
PROJECT NO.:
WVF-207
Membrane Building motor controls, and floor grating installed
GENERAL CONTRACTOR:
SSC CONSTRUCTION INC.
Vehicle canopy structure installed
JUNE PROGRESS
DESIGN ENGINEER:
BLACK & VEATCH INC.
$1,008,043.16
CONSTRUCTION MANAGER:
BLACK & VEATCH, INC.
$29,741,715.52 $28,733,672.36
AMOUNT TO ESCROW'
PROJECT CONTRACT AMOUNT:
$35,905,500.00
82.04%
$36,251,072.84
CHANGE ORDERS TO DATE`.
$100,642.76
10 DAYS
' Approved July 23, 2007
$164,975.54
14 DAYS
Approved Sept 24, 2007
$57,261.33
4 DAYS
Approved Nov 26, 2007
$22,693.21
0 DAYS
Approved Feb 25, 2008
MONTHLY ACTIVITIES
Construction progress meetings were held July 3 & July 17
As of 6117108
Pretreatment Structure covers installed
Various plant piping and electric conduit installed
DYK reservoir coated and being filled with water for testing
Z7
w
O&M Exterior and interior finish work continues
Chemical Feed Building tanks installed
Membrane Building motor controls, and floor grating installed
Canal Diversion Structure in operation- mechanical screen installed
Vehicle canopy structure installed
JUNE PROGRESS
PAYMENT REQUEST:
$1,008,043.16
JUNE PTD
TOTAL PAID TO DATE
$29,741,715.52 $28,733,672.36
AMOUNT TO ESCROW'
$2,189,109.46 `Fixed amount
PROJECT PERCENT COMPLETE
82.04%
Z7
w
Dev q
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
I
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JULY 28, 2008
SUBJECT: CUSTOMER SURVEY RESULTS
Following a competitive bid process, Azusa Light & Water contracted with SDS Research to
conduct a customer survey in June 2008. Exhibit A is an article written by SDS for the
September 2008 Azusa Tomorrow customer newsletter.
j Customer satisfaction and perception of utility value is high.! In fact it is significantly higher
than more than fifty utilities surveyed by SDS Research in the past year. We are also pleased to
see the positive results of customer service training and quality of service goal achievement since
the last survey. We will be focusing on an area identified for improvement, strengthening
communication of programs and rebates.
Results will be shared with all Azusa Light & Water employs in an all hands meeting this
week. The article will be available for viewing in Light & Water Administration.
I
Prepared by
3
K. Vanca
Exhibits:
Exhibit A — Applause for Azusa Light & Water!
071
Exhibit A
Applause for Azusa Light and Water!
A big thank you goes out to those who participated in the recent Azusa Light and Water
Survey conducted by SDS Research. This survey of customer satisfaction continues a
tradition by Azusa Light and Water to encourage customer feedback and suggestions.
Results have been compared to the power and water provider industry benchmarks that
are based on responses from more than 50 utility customer surveys conducted by SDS
Research within the past 12 months. Azusa Light and Water EXCEEDS the industry
averages in every category. Overall ratings are higher by 7 percentage points and
ratings of employee interactions by 9. The area that represents the greatest difference,
however, is in the value provided. Not generally a source of high ratings in the industry,
the perceived value of electric and water service is 40 percentage points higher among
Azusa Light and Water customers.
Some of the survey questions were changed this year to reflect not only levels of
customer satisfaction, but also the level of awareness and understanding of additional
services that Azusa Light and Water provides. While recognizing that many customers
have benefited from water and energy conservation tips, Azusa Light and Water
provides many additional programs, most of which are not as well known with limited
participation.
With the valuable input that has been received, Azusa Light and Power is committed to
making more information available in the future regarding programs such as rebates,
energy audits, and payment alternatives. In short, you have been heard. This feedback
will be used to strengthen communication throughout the community and company.
A final area of importance in the survey is the general perception of Azusa Light and
Water in relation to things such as honesty in dealing with customers, delivering what is
promised on time, being progressive, maintaining concern for the environment, and
involvement in the community. Each of these areas received close to or greater than
90% positive ratings.
Going the Extra Mile to serve customers and improve operations is the constant goal of
Azusa Light and Water. We are proud to partner with an organization that recognizes
the value of customer input in that process.
Contact Karen Vanca, at (626) 812-5207 with any questions about the survey.
Dale R. Inkley
President
072
D
San Gabriel Valley Council of Governments
3452 East Foothill, Suite 810: Pasadena. California 91107-3142 Phone: 1;3261564-9?02 FAX. (626)564-1116 E -Mail SGV@s9v,o9.org
DATE: July 21', 2008
TO: San Gabriel Valley Elected Officials and Staff
i
FROM: Sam Pedroza, Chair of the Chair, SGVCOG Solid Waste Working Group
'
RE: Trash 101 Workshop — September 12th, 2008
The scheduled closure of Puente Hills landfill in 2013 will have a major impact on the San Gabriel Valley
and our strategies for processing solid waste. It is critical that the elected and appointed officials in the
Valley understand the impact of this closure and other issues related to solid waste and become actively
i
engaged in developing solutions for our residents. I
The San Gabriel Valley Council of Government's (SGVCOG) is committed to assisting our member
agencies in understanding the relevant issues and developing strategies to meet this challenge. In that
regard, the SGVCOG is hosting an educational workshop for elected and appointed officials in the region
to discuss solid waste issues entitled "Trash 101: A New Era for Solid Waste Management." The event
information is as follows:
Date:
Time:
Location:
i
! Cost:
Friday, September 12'h, 2008
8:00 a.m. — 3:00 p.m.
Los Angeles County Sanitation Districts
Administrative Office
1955 Workman Mill Road
Whittier, CA 90601
No cost to attend
Registration Deadline: Wednesday, September 3"' by phone (626-564-9702)
or email (ssv(cdsgvcog.org)
i
This workshop will provide participants with an introduction to solid waste management as well as
information about current and future trends in the field, including waste -by -rail, conversion technologies,
zero waste, and producer responsibility. In addition, there will be an opportunity to participate in a site
tour of the Puente Hills Landfill and Material Recovery Facility (MRF).
Attached is a copy of the event flyer, agenda, and registration form! Should you have any questions about
this event, please feel free to contact the SGVCOG offices at (626) 564-9702.
073
to
a.
epi E
gas
mill;;
Agenda
I September 12th 20081
8:00 a.m. - 3:00 p.m.
9
8:00 - 8:30 a.m. Breakfast & Registration
8:30 - 9:00 a.m. Session 1: What is in our Trash?;
✓ Facts About Waste: Past, Present, and Future,
9:00 - 10:00 a.m. Session 2: Where Does Trash Go?
V Infrastructure and Operation
VLegislation & Regulations
10:00-10:15 a.m. Break
10:15 - 11:45 p.m. Session 3: The Future of Trash: Technologies, and Trends
vWaste-by-Rail
VConversion Technologies
VZero Waste
v'Producer Responsibility
vHauler Perspective
VPanel Discussion
ILI
12:00 -1:30 p.m. Lunch VKeynote Speaker
3:00 p.m. Site Tours
Directions to the Los Angeles County Sanitation Districts Offices
From the 210,10 & 60 Freeways
. From the 210 or 10, merge onto the
605S
. Exit onto 60 E towards Pomona
. Take Exit 13 towards Crossroads
Pkwy N
. Turn LEFT at Crossroads Pkwy S
(0.2 m)
. At T -intersection, turn LEFT at Cross-
roads Pkwy N (0.7 m)
. Turn LEFT at Workman Mill Rd, the
offices will be on your right
ease be sure to
lister attend by
mber 3rd in order
be added to the
security list
8:00-8:30
Breakfast & Registration
8:30-11:45
Sessions 1, 2, and 3
12:00-1:30
Lunch & Keynote Speak
1:30-3:00 Site Tours
----------------------------------------------------------------
Trash 101: A New Era for Solid Waste Management
REGISTRATION FORM,'.':
Name:
City/Organization:
Title:
Email:
Please mail or email registration information to:
San Gabriel Valley Council of Governments
3452 E. Foothill Blvd, Suite 810
Pasadena, CA 91107
Email: sgv@sgvcog.org
Phone: (626) 564-9702
6
8
UPPER SAN GABRIEL VALLEY
MUNICIPAL WATER DISTRICT
The Upper San Gabriel Valley Municipal Water District invites you and your family to
Water Fest 2008 at Arcadia County Park, Saturday, October 4, 2008 from 9 a.m. - 2 p.m.
The event is FREE! Learn about water conservation and enjoy free food, games & prizes.
Questions? Call (626) 443-2298 or visit www.usgvmwd.org
El Distrito Municipal de Agua de Upper San Gabriel Valley le invita a usted y su familia a
celebrar Water Fest 2008 en el Arcadia County Park, el Sabado, 4 de Octubre 2008 de
9 a.m. - 2 p.m. iEl evento es GRATIS! Aprenda acerca de la conservaci6n de agua y
goce de alimentos, juegos y premios gratuitos.
6Tiene preguntas? Llame (626) 443-2298 o visite www.usgvmwd.org
"�° t �&�1c JPa ; J 3f J -fin �Fffi�iAllg �kb E3-2008$**ftV(Water Fest),
> fffiAK1§MHa=WWn*t» YM;. ) . ±'�FA*YTS=*,
}}��, g'# �efn��ay��siA/ln,i�!-,31�pl�l� 6l ffi (Arrccaldiia CountyPyark)v�t£jXMff . yg
A.
!�NIRIW (626) 443-2298 AMMOttL www.uspvmwd.org
Su�ia Mips Pah
Santa ML, CW('aorc¢
HAVE A FAMILY PICNIC WITH LIS AND LEARN ABOUT OUR
MOST PRECIOUS NATURAL RESOURCE