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HomeMy WebLinkAbout26819AGENDA ' REGULAR MEETING OF AZUSA UTILITY BOARD/AZUSA CITY COUNCIL AZUSA LIGHT & WATER 729 N. AZUSA AVENUE AZUSA, CA 91702 AZUSA UTILITY BOARD ANGEL A. CARRILLO CHAIRPERSON URIEL E. MACIAS VICE CHAIRPERSON NOVEMBER 24, 2008 6:30 P.M. JOSEPH R. ROCHA BOARD MEMBER KEITH HANKS ROBERT GONZALES BOARD MEMBER ' BOARD MEMBER 6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call A. PUBLIC PARTICIPATION (Person/Group shall be allowed to speak without interruption up to five (S) minutes maximum time, subject to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker's questions or comments shall be handled after the speaker has completed his/her comments. Public Participation will be limited to sixty (60) minutes time.) j out 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 on October 27, 2008 as written. 1W Min Reg Mtg.pdf 2. Minutes. Recommendation: Approve minutes of Utility Board Workshop on October 27, 2008 as written. GAG Wkshp Mit. pdf Notice of Completion of Project LD2008-2. Recommendation: Accept Project LD 2008-2, furnish and install underground electric substructures along Gladstone Street, Azusa Avenue, and Arrow Highway; direct City Clerk's Office to execute the Notice of Completion, and have same recorded in the Office of Los Angeles County Recorder. NOC ID08-2.pdf NOC-BNB. pdf 4. Plans and Specifications for Project LD2008-3. Recommendation: Approve plans and specifications for Project LD2008-3, furnish, install, refurbish, and secure the existing chain link fencing at Azusa Substation — 809 North Angeleno Avenue. 91 Azusa Sub Fendng.pdf Plans and Specifications for Project. LD2008-4. Recommendation: Approve plans and specifications for Project LD2008-4, furnish and installation underground conduits and street lights along Ranch Road north of Sierra Madre and authorize City Clerk to advertise for bids. U LD084. pdf 002 9 6. Additional $30,000 to Hunter Electric Blanket Purchase Order. Recommendation: Approve the addition of $30,000 to Hunter Electric blanket purchase order to fund additional work necessary to repair damage arising from the theft of wire and control devices from emergency_ generators at Wells No. 3 and 11. � Hunter P0. pdf Purchase of Two Pickup Trucks for Water Distribution. Recommendation: Dispense with formal bidding procedures and award the purchase of one Ford F150 pickup truck and one Ford F250 truck to Downtown Ford Sales under California Multiple Award Schedule (CMAS Contract No. 1-08-23-20) in amount of $42,148.28, including tax and delivery. WtrTrucks. pdf 8. Purchase of One Automated Valve Operator from Wachs Company. Recommendation: Dispense with formal bidding procedures and award the purchase of one Model 1 -ERV -750 Automated Valve Operator with Datalogger and software from E.H. Wachs Company in amount of $15,227.68, including tax and delivery. f 1 Valve Ing I Equip.pdf 9. Additional Reimbursable Compensation to Civiltec En¢ineerin2. Recommendation: Approve the reimbursable addition of $40,000 to Civiltec Engineering Contract for continuing inspection of Rosedale Development water storage reservoirs and water pump stations. 2k 04-7ec. pdf 003 10. Request for Proposals for Water Rate Study. Recommendation: Authorize staff to solicit proposals from qualified consultants to review adequacy of water rates and make recommendations on any changes to the water rate adjustment of 6% which is scheduled to go into effect on July 1, 2009. 11 C. Water Rate RFP-Rpt.pdf Single Use Bas Reduction Program. Recommendation: (1) Approve the implementation of a single use bag reduction program; and (2) approve a budget amendment of $10,000 to cover program expenses. SCHEDULEDITEMS Water Supply Agreement with Miller Coors LLC. Recommendation: Approve letter of agreement with Miller Coors LLC to extend the negotiating period until February 1, 2009, for purposes of negotiating changes to the Water Supply Agreement between the parties. ISI Miller-Coors-Agrtt.pd f STAFF REPORTS/COMMUNICATIONS Monthly Update on Water Treatment Plan WTP Moly Update.pdf Update on Negotiations with Athens Services (Verbal) 4 0011 Bag Program Program Outrme.pdf County Res Report.pdf Packet. pdf SCHEDULEDITEMS Water Supply Agreement with Miller Coors LLC. Recommendation: Approve letter of agreement with Miller Coors LLC to extend the negotiating period until February 1, 2009, for purposes of negotiating changes to the Water Supply Agreement between the parties. ISI Miller-Coors-Agrtt.pd f STAFF REPORTS/COMMUNICATIONS Monthly Update on Water Treatment Plan WTP Moly Update.pdf Update on Negotiations with Athens Services (Verbal) 4 0011 Southern California Electric Utilities Retail Rate Comparisons Elec Rate Conparlson. pdf 4. December Utility Board Meeting (Verbal) 5. Update on Drought (Verbal) E. Water Conservation and Dry Parkways (Verbal) F. ADJOURNMENT I 1. Adjournment. i "In 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." "In compliance with Government Code Section 54957.5, agenda jaterials are available for inspection by members of the public at the following locations. Azusa City Clerk's Office - 213 E. Foothill Boulevard, Azusa City Library - 729 N. Dalton Avenue, and Azusa Light & Water -729 N. Azusa Avenue, Azusa CA. " I� I (.)()5 CITY OF AZUSA MINUTES OF THE REGULAR MEETING 1 _• OF THE AZUSA UTILITY BOARD/CITY COUNCIL } AND THE AZUSA REDEVELOPMENT AGENCY MONDAY, OCTOBER 27, 2008 — 6:30 P.M. The Utility Board/City Council and Redevelopment Board Members of the City of Azusa met in regular session, at the above date and time, at the Azusa Light and Water Conference Room, located at 729 N. Azusa Avenue, Azusa, California. I Chairman Carrillo called the meeting to order and Mr. Jorge Rosales led in the salute to the Flag. ROLL CALL I PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT:' BOARD MEMBERS: NONE ` I ALSO PRESENT: City Attorney Ferre, City Manager Delach, Assistant City Manager Makshanoff, Director of Utilities Hsu, Director of Resource Management Tang, Assistant to the Utilities Director Kalscheuer, Assistant Director of Water Operations Anderson, Economic and Community Development Director Christianson, Assistant Director Customer Care and Solutions Vanca, Customer Care Operations Sdpervisor Tapia, Azusa Police Captain Gonzales, City Clerk Mendoza, Deputy City Clerk Toscano. Public Particivation Mr. Jorge Rosales addressed Board Members regarding items B-3, B-9, D-1 and D-2. He stated that attachments for items D -I and D-2 were not found on the City's website. He expressed his concern regarding Civiltech Engineering requesting clarification on the phrases "shorter schedule", "personnel assigned" and "familiarity" and the non publication of request for the proposals. He also addressed concern regarding the amount of money that has been paid to date to Wren & Associates; the proposed lack of proper RFP process and money "submitted" to ALP for reimbursement. I Mr. Art Morales addressed the Board Members regarding the following: payment drop box, three stabbings in Azusa, synchronization of traffic signals, water conservation, Block 36, free swim, and Items B-4 and B-6. 1 City Manager Delach responded to questions stating that he would look into the issues and noted that some items will be addressed during the meeting. Call to Order Roll Call Also Present Pub Part J. Rosales Comments A. Morales Comments City Mgr Comment D M Customer Care Operations Supervisor Tapia introduced new employee Melissa Onate, Customer Service New employee Representative I. M. Onate The CONSENT CALENDAR consisting of Items B-1 through B-10, was approved by motion of Chairperson Consent Cal Carrillo, seconded by Board Member Rocha and unanimously carried with the exception of items B-9 and B-6, Appvd B-6 & which were considered under the Special Call portion of the Agenda. B-9 Spec Call I. The minutes of the regular meeting of September 22, 2008, were approved as written. Min appvd 2. Approval was given for Change Order No. 12 for the addition of $90,761.23 and extension of time to Change Order complete by two calendar days to the SSC Construction Incorporated contract forconstmction of Project SSC Construct. WVF-207, Canyon Filtration Plant Membrane. 3. Professional Services contract with Civiltec Engineering Incorporated to perform engineering design Civiltec Engr services for Project WF -221 South Reservoir Demolition and Replacement was approved. Approved 4. Staff was authorized to enter into multi-year agreement natural gas price hedging transaction in Multi-year accordance with the processes and within the parameters to reduce energy price risks of Garnet Wind agreement Project. Garnet Wind 5. Authorization was given for an amendment in the amount not -to -exceed $25,000 to the blanket purchase Blanket P.O. order issued to Olympic Staffing for temporary employee services for fiscal year ending June 30, 2009. Olympic Staff 6. SPECIAL CALL ITEMS. Spec Call 7. Approval of Sharps Disposal Program. Approval was given for implementation of a sharps disposal Sharps program to assist residents to comply with SB 1305; and a budget amendment in amount of $10,000 to Disposal Prgm cover program expenses was approved. 8. Authorization was given to develop and release of RFP to develop and produce public education RFP Public ed materials to promote water and energy conservation. Conservation 9. SPECIAL CALL ITEM. Spec Call 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA DECLARING ITS INTENTION Res. 08-C 100 TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF A PROPOSED TAX- Intent to EXEMPT FINANCING, AS REQUIRED BY THE UNITED STATES DEPARTMENT OF Reimburse Tax TREASURY REGULATIONS SECTION 1.150-2. Exempt Fin SPECIAL CALL ITEMS Special Call Lengthy discussion was held regarding the proposed Request for Proposal (RFP) for Solid Waste Consultant Lengthy Services which consisted of development of a five and ten year cost forecast for different disposal options, Discussion maintaining adequate waste diversion, and controlling costs in the future. Athens Services would like to RFP for Solid maintain contract provisions requiring City to send all of its waste to Athens' MRF first during the term of the Waste City's agreement, which extends each year by one year; the commitment the City has to Athens is indefinite. Consultant Mr. Dennis Chappetta of Athens Services addressed the issue stating that he would work with the City staff or D. Chappetta any consultant that may be hired. Comments Assistant to the Utilities Director Kalscheuer stated that there is a need to explore options and obtain C. Kalscheuer information on how to negotiate with Athens, i.e. what other facilities are out there to negotiate better deals Comments than Athens and/or better services to City residents. He stated that Los Angeles County Department of Public Works is conducting studies regarding conversion technology and, due to the ongoing contract with Athens 8 year rolling contract there will be no options to go to these types of facilities. 10/27/08 PAGE TWO 007 After additional lengthy discussion between Board Members and Staff, it was moved by Board Member Add'I dis Gonzales, seconded by Board Member Rocha and carried to authorize staff to solicit proposals from qualified RFP Approved solid waste and recycling consultants to analyze City contract with (Athens Services and make recommendations pursuant to the study and assist in negotiations with Athens.1 Chairman Carrillo and Board Member Hanks dissented. i Board Member Rocha addressed amendment to contract with Wren & Associates for Rosedale Pipeline asking Rocha when the City will be reimbursed. Comments Assistant Director of Water Operations Anderson responded stating that the City has been reimbursed Anderson approximately $150,000; all bills have been submitted and there is a deposit with the City which will not be Comments paid until full reimbursement is made. i Moved by Board Member Rocha, seconded by Board Member Hanks and unanimously carried to approve the Wren & Assoc. reimbursable addition of $20,000 to Wren & Associates contract for continuing inspection of Rosedale Ins. Rosedale Pipeline and Water Infrastructure. I Pipeline Assistant to the Utilities Director Kalscheuer addressed public comments with respect to amendments of C. Kalscheuer professional service agreements, stating that there is a provision in the Azusa Municipal Code which requires Comments all amendments over $10,000 to be approved by the Board Member. He talked about the Blanket Purchase Order process and how that process also can result in the same vendors being approved from year to year, but noted the municipal code does not require each transaction to be approved by the Board. City Manager Delach defined the issue of familiarity stating that it is not a personal relationship, but familiarity of the Engineers as consultants to specific projects. I SCHEDULED ITEMS I Sched Items Assistant Director Customer Care and Solutions Vanca presented the proposed adoption of Program to Protect K. Vanca Customer Identification and Credit Information to be in Compliance with Fair Credit Reporting Act and Fair Comments and Accurate Credit Transaction Act of 2003. She stated that due to the high increase in identify theft, the FCRA is requiring creditors to develop and implement an Identity Theft Prevention Program and staff has complied with the request. She responded to questions posed. i Director Gonzales offered a Resolution entitled: A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA TO ADOPT AN IDENTITY THEFT PREVENTION PROGRAM FOR AZUSA LIGHT & WATER. Moved by Board Member Gonzales, seconded by Board Member Hanks to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board Members:) AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: BOARD MEMBERS: NONE ' ABSENT: BOARD MEMBERS: NONE Director of Resource Management Tang presented the Amendment No. 1 to Lodi #2 Project Phase 2 Planning and Development Agreement, which revises the scope of the Project Phase 2B to include activities related to securing a defined equipment production delivery schedule and known pricing structures for key power island components as well as the potential leasing of warehouse and storage facilities at or proximate to the proposed Project site; he responded to questions posed. I Moved by Board Member Hanks, seconded by Board Member Macias and unanimously carried to approve Amendment No. 1 to Lodi #2 Phase 2 Planning and Development Agreement at a not -to -exceed budget of $412,000; and authorize the Mayor to execute Amendment No. 1. 1. Res. 08-C 101 Amend Rules Wtr Conserve Amendment No. I Lodi #2 Ping & Dev Agmt Amendment No. 1 appvd 10/27/08 PAGE THREE 1 008 STAFF REPORTS Staff Rpts Director of Utilities Hsu presented the Monthly Update on the Water Treatment Plant stating that there have Dir of Util been 1.25% change orders for the project; its contract completion date is November 1 I" and the project is Update WTP 88.1 % complete. Director of Utilities Hsu presented the Legislative Update, for information purposes; there was no discussion Dir of Util held on the update. Legislative Director of Utilities Hsu presented the 2009 Annual Resource Adequacy Plan noting the Demand Forecast and Dir of Util Resources required, stating that the City has fulfilled the Resource Adequacy guidelines. RAP Dir Cmts Director of Utilities Hsu provided an update stating that the Light and Water Department will be reimbursing Dir of Util the Azusa Land Partners for the Rosedale Project reservoirs once they are completed; the amount is 5-8 million Comments dollars. He also stated that the interim loan the city provided them will cease. Board Member Macias requested an overview of the housing rehabilitation programs conducted by Ron Joseph Macias & Associates. Comment Chairperson Carrillo congratulated Board Member Macias on his promotion to an Ensign 01 in the Navy. Carrillo REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Comment Moved by Chairman Carrillo/Mayor Pro -Tem, seconded by Board Member/Councilmember Hanks and Recess to unanimously carried to recess at 7:45 p.m. The Board Members/Councilmembers reconvened at 8:23 p.m. and Closed Sess recessed to Closed Session to discuss the following: CLOSED SESSION Closed Sess Real Prop Neg REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) 159 W. 9' St. Property Address: 150 W. 9th Street, Azusa, CA 91702 Negotiating Parties: King Ranch Market, Aner Iglesias, Business Owner Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff Under Negotiation: Price and Terms of payment Block 36 BLOCK 36 Real Prop Neg REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) 152 E. Foothill Address: 152 E. Foothill Boulevard, Azusa, CA 91702 Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff Negotiating Parties: Bank of America & City of Azusa Redevelopment Agency Under Negotiation: Price and Terms of Payment Real Prop Neg REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) 100 E. Foothill Address: 100 E. Foothill Boulevard, Azusa, CA 91702 Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff Negotiating Parties: City of Azusa and City of Azusa Redevelopment Agency Under Negotiation: Price and Terms of Payment Real Prop Neg REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) 614-640 N. Address: 614 - 640 N. Azusa Avenue, Azusa, CA 91702 Azusa Avenue Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff Negotiating Parties: City of Azusa and City of Azusa Redevelopment Agency Under Negotiation: Price and Terms of Payment 10/27/08 PAGE FOUR 009 CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6) Agency Negotiators: City Manager Delach Organizations: Executive Management Conf w/labor Negotiator Executive Management The Board Members/City Council Members reconvened at 9:40 p.m. There was no reportable action taken in Reconvened Closed Session. No Reports It was consensus of the Board Members and City Council Members to adjourn. TIME OF ADJOURNMENT: 9:41 P.M. SECRETARY NEXT RESOLUTION NO.08-C102.(CityBoard Members) NEXT RESOLUTION NO. 08-R45 (Agency) 10/27/08 PAGE FIVE Adjourn 010 CITY OF AZUSA MINUTES OF THE GREENHOUSE WORKSHOP OF THE AZUSA UTILITY BOARD/CITY COUNCIL i MONDAY, OCTOBER 27, 2008 — 7:54 P.M. The Utility Board Members of the City of Azusa met in workshop session, at the above date and time, at Azusa Light and Water Department Conference Room, located at 729 N. Azusa Avenue, Azusa, California. ROLL CALL PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: BOARD MEMBERS: NONE ALSO PRESENT: City Attorney Ferre, City Manager Delach, Assistant City Manager Makshatioff, Director of Utilities Hsu, Director of Resource Management Tang, Assistant to the Utilities Director Kalscheuer, Assistant Director of Water Operations Anderson, Azusa Police Captain Gonzales, City Clerk Mendoza, Deputy City Clerk Toscano. Call to Order Roll Call Also Present The Workshop on greenhouse gas consisted of an overview of AB 32 Greenhouse gas mandate; impacts to the Workshop electric utilities; what the City is planning to do and, suggested policy directives to support. AB 32 Mandate is AB 32 Green - summarized as follows: it was enacted into law in 2006; it creates a state wide GHG emission limit equal to house Gas 1990 levels by 2020; California Air Resources Board (CARB) assisted by CPUC and CEC will enact Mandate regulations for the electricity sector by 2012, and Electric utilities are expected to reduce carbon "intensity" by 30% by 2020. I Moved by Chairman Carrillo, seconded by Board Member Hanks and unanimously carried to adjourn. Adjourn. TIME OF ADJOURNMENT: 8:20 P.M. SECRETARY NEXT RESOLUTION NO.08-C102. Oil F7% CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL i FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIEW DATE: NOVEMBER 24, 2008 SUBJECT: NOTICE OF COMPLETION FOR PROJECT LD2008-2, FURNISH AND INSTALL UNDERGROUND ELECTRIC SUBSTRUCTURES ALONG GLADSTONE STREET, AZUSA AVENUE, AND ARROW HWY PER DRAWING ED2008-2 RECOMMENDATION It is recommended that the Utility Board/City Council accept Project LD2008-2 and direct the City Clerk's Office to execute the Notice of Completion and have the same recorded in the Office of the Los Angeles County Recorder. I BACKGROUND New underground electric substructures have been installed along Gladstone Street from Lark Ellen to Azusa, Azusa Avenue from Gladstone to Payson Street, Azusa Avenue 300 feet just north of Arrow Hwy, and Arrow Hwy from Azusa Ave to just east of Big Dalton Wash as per plan and specifications for project LD2008-2. BnB Engineering, Incorporated was awarded the contract for this project and started construction on July 22, 2008 and completed construction on October 24, 2007. Staff has inspected the completed project and determined it to be in compliance with the plans, specifications and conditions of the contract. FISCAL IMPACT This project was budgeted under Capital Improvement Projects and was completed on time and on budget. This Notice of Completion action will have no fiscal impact. Prepared by: Hien K. Vuong 1 012 RECORDING REQUESTED BY City of Azusa AND WHEN RECORDED MAIL TO: "ME Azusa City Clerk ' STAEEE 213 E. Foothill Boulevard POomss Err., sr.n E Azusa CA 91702 PP CODE I A I SPACE ABOVE THIS LINE FOR RECORDER'S USE ewe;�e�aae�®®wi.>•aAe�"��liiia�i����s�usaiair���eeeeeezf�iaoaaaian�eeee���`�iiine�����iaaiiia�����uii�ii��eenv��,a� NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. ISee reverse side for Complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is City Of Azusa 3. The full address of the owner is 213 F _ Pnoi-hi 11 Anal ozard, Azusa CA 91 702 4. The nature of the interest or estate of the owner is: In fee. , (F OTHER THEN FEE, V WEE -W FEE' ANO INSE", FOA f>.lunE, 'PURCHASER "DER CONFMCT OF FOaCX,.SE,' dR �EESSEE-I 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAMES ADDRESSES 6. The full names and full addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred. to: NAMES ADDRESSES 7. A work of improvement on the property hereinafter described was completed on Oct. 24, 2005 The work done was: S. The name of the contractor, if any, for such work of improvement was BnB Engineering Inc. 2602 South Halladav Street, Santa Ana, CA 92705 (IF NO CONTMCTOR FOR WOAE OF WAPFOVWENT A5 A WMOEE INSFAT'NONE' IRATE W CONTMCTI 9. The property on which said work of improvement was completed is in the City of Azusa Counryof IAS Angeles ,Stateof CA , andisdesaibedasfollows: Furnish & install underground electric Su listructureg Ter dratai nng Ff1JMA—' 10. The stteet address of said property is Gladstone, AZllsa, and Arrow Hwy 11A NO STREET A0011E55 MAS 11N 111C 1 AESIGNEO, INSERT FNONE-.1 Dated: (SI "MM OF 0W 14 OA COWOMTE OFFKEA OF OWNER N EO W PARAGRAPH 204 HIS "E" VERIFICATION I, the undersigned, say: I am the Mawr Of the declarant of the foregoing notice of completion; YPRESIOENr OF', �MANAGEA OF',' A R 0", " EA OF', ETC. I have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. , Executed on at Azusa CA ICmi InATEI ' (PERSONµ SIGMTUPE OF THE WONIOUAE wMO 9 SYhAPoNG THAT THE COMEMs OF THE NOTICE OF COMPUTION AXE TM.1 Wbt.COTT5 FOW 1111 .1v &U Iprk. data U) NOTICE OF coHO U 110N 01591 WOLCOTTS FORMS, M. ISee reverse side for additional Information) 7 II�I6II�77 39114 5 114Il5 013 CONSENT CALENDAR BOARD AND AZUSA CITY COUNCIL I I FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES, DATE: NOVEMBER 24, 2008 SUBJECT: APPROVE PLANS AND SPECIFICATIONS FOR PROJECT LD2008-4 — FURNISH AND INSTALL UNDERGROUND CONDUITS AND STREET LIGHTS ALONG RANCH ROAD NORTH OF SIERRA MADRE I RECOMMENDATION It is recommended that the Utility Board/City Council approve plans and specifications for project LD2008-4 and authorize City Clerk to advertise this project for bids. BACKGROUND Ranch Road north of Sierra Madre Boulevard, connects to San Gabriel Canyon Road on the north end. Ranch Road is also used by many as an altemate route to San Gabriel Canyon Road. During the regular City Council meeting in February 2008! a few residents along Ranch Road expressed concern about the sufficiency of street lighting on Ranch Road. After investigating the existing conditions earlier this year, staff found that there are only two street lights mounted on existing power poles that illuminate approximately 500 linear feet of roadway surface at the southern end of Ranch Road. Staff concurred with public comments that additional lighting was warranted and included a capital improvement project budget to add more lighting this fiscal year. This budgeted project will install a total of four new concrete light poles. Two of them are replacements for the two existing pole mounted street lights. These new lights will be installed in accordance with standard roadway lighting guidelines. I When completed, this project will improve roadway lighting along Ranch Road. A set of Plans and Specifications is available for public review at 2° floor counter of Azusa Light & Water office at 729 N. Azusa Ave., Azusa CA 91702. 1 FISCAL IMPACT This project is budgeted this fiscal year and funds are available in capital improvement project budget account 33-80-000-000-7170/73009D-7170, however, costs will not be known until final bids are received. Prepared by: Hien K. Vuong — Electrical Engineer 014 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: NOVEMBER 24, 2008 SUBJECT: APPROVE PLANS AND SPECIFICATIONS FOR PROJECT LD - 2008-3 FURNISH, INSTALL, REFURBISH & SECURE THE EXISTING CHAIN LINK FENCE AT AZUSA SUBSTATION - 809 N. ANGELENO AVENUE. RECOMMENDATION It is recommended that the Azusa Utility Board/CityI Council approve the plans and specifications for Project LD -2008-3 for furnishing, installing, and refurbishing existing chain link fencing at Azusa Substation located at 809 North Angeleno Avenue. BACKGROUND I The Electric Division's Azusa Substation is located and enclosed by a chain link fence inside the premises of the City Maintenance Yard located at 809 North Angeleno Avenue. The northeasterly portion of substation perimeter is adjacent to a residential property. At this time, some sections of the existing chain link fence at Azusa Substation are in need of refurbishment. The bent metal posts need to be fixed and sections of rustitig chain link mesh fence have to be replaced. In addition to reinforced entry gates, the vulnerable north-east portion of substation perimeter fencing needs to be improved for security reasons. A fence security monitor and barbed wire are recommended enhancements. This refurbishment project will improve the Azusa substation perimeter fencing, similar to a recently completed improvement project constructed at the Kirkwall substation. This project will further secure critical electric infrastructure once completed. A set of Plans and Specifications is available for public review at 2n1 floor counter of Azusa Livht k Water offire at 729 N A7nca Aur Avnca CA ot7n') FISCAL IMPACT I This capital improvement project is budgeted this fiscal year and funds are available in Account #33-80-000-000-7145n3009C-7145, however, costs will not be known until final bids are received. Prepared by: F. Langit Jr., Senior Electric Engineer i 015 TO: r l HONORABLE CHAIRPERSON AND MEMBERS CONSENT CALENDAR OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES' ^` / DATE: NOVEMBER 24, 2008 t SUBJECT: ADDITION OF $30,000 TO HUNTER ELECTRIC SERVICE BLANKET PURCHASE ORDER FOR ADDITIONAL WORK TO REPAIR DAMAGE TO ELECTRIC DEVICES AND CONTROLS DUE TO THEFT ON AUGUST 12, 2008 1 RECOMMENDATION It is recommended that the Utility Board/City Council approve the addition of $30,000 to the Hunter Electric Services Blanket Purchase Order to fund additional work necessary to repair damage arising from the theft of wire and control devices from emergency generators at Well Nos. 3 and 11. 1 13L�.Z�ii�111► It In late August, thieves damaged the Water Operations emergency generators at Wells Nos. 3 and 11 while stealing copper wire and other copper bearing materials. In all, the damage to the generators amounted to approximately $31,300. The Water Division has a Blanket Purchase Order to fund repairs to the water production facilities as they become necessary. However, the damage done to the generators is extraordinary and unanticipated and not covered by the funds in the Blanket Purchase Order. The purpose of this recommended addition to the Blanket Purchase Order is to cover the cost of the repair of the damage to the generators. FISCAL IMPACT Fiscal impact will be $30,000. Funds are available from the Water Fund balance which may be used to amend current operating budget account to pay this vendor. Prepared by: Chet F. Anderson, Assistant Director - Water Operations 616 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: NOVEMBER 24, 2008 ! SUBJECT: PURCHASE OF ONE (1) FORD F150 PICKUP TRUCK AND ONE (1) FORD F250 PICKUP TRUCK TO DOWNTOWN FORD SALES UNDER CALIFORNIA MULTIPLE AWARD SCHEDULE (CMAS) RECOMMENDATION It is recommended that the Utility Board/City Council dispense with formal bidding pursuant to Municipal Code Section 2-522, sub -section C, and award the purchase of one (1) Ford F150 pickup truck and one (1) Ford F250 pickup truck to Downtown Ford Sales under the California Multiple Award Schedule (CMAS Contract No. 1-08-2320) in the amount of $42,148.28, including sales tax and delivery. BACKGROUND The Water Division Distribution crew currently has a 1994 Ford F150 (WT -02) that has approximately 63,000 miles on it and a 1995 Ford F150 (WT -03) that has approximately 65,000 miles on it. Both trucks have suspension problems and one has a transmission leak and one has an oil leak. These trucks require constant repair and maintenance, and have exceeded their economical useful life. They will be declared surplus upon delivery of the new trucks. In addition, the F250 will be equipped with a service body that provides secure storage and transportation of small tools and small parts for repairs. i - FISCAL IMPACT I Fiscal impact will be $42,148.28 including applicable tax and delivery. Funds are available in the Water Division's Vehicle Replacement Budget Account No. 32-40-723-761-7140. Prepared by: Chet F. Anderson, Assistant Director - Water Operations 0.17 AZ.0ent .� Srry 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: NOVEMBER 24, 2008 i , SUBJECT: PURCHASE OFA MODEL 1 -ERV -750 AUTOMATED VALVE OPERATOR FROM E. H. WACHS COMPANY I RECOMMENDATION It is recommended that the Utility Board/City Council dispense with formal bidding pursuant to Municipal Code Section 2-522, sub -section B, and award the sole source purchase of one (1) Model 1 -ERV -750 Automated Valve Operator with Datalogger and software from E. H. Wachs Company in the amount of $15,227.68, including tax and delivery. BACKGROUND r The Distribution crew of Water Division currently has a Wachs valve turning machine that is mounted on a pickup truck bed and is used for exercising valves and turning valves that are stuck or hard to turn. The current valve turning machine is over 8 years old and is need of replacement. The new valve turning machine includes a datalogger and associated software, an installation kit, and a telescopic hydraulic valve key, all of which will be mounted on a truck by utilities staff. FISCAL IMPACT Fiscal impact will be $15,227.68, including tax and delivery.] Funds are available in the Water Division's Operating Budget for Capital Outlays, Account No. 32-40-723-761-7140. Prepared by: Chet F. Anderson, Assistant Director - Water Operations HE ..J. y fn AZUSA IIGNI R RATER CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES, DATE: NOVEMBER 24, 2008 � SUBJECT: ADDITIONAL REIMBURSABLE COMPENSATION TO CIVILTEC ENGINEERING, INC. FOR CONTINUING INSPECTION SERVICES ON THE ROSEDALE WATER RESERVOIRS AND WATER PUMP STATIONS 0 RECOMMENDATION It is recommended that the Utility Board/City Council approve the reimbursable addition of $40,000 to Civiltec Engineering, Inc. contract pursuant to Azusa Municipal Code (AMC) section 2-517(h) for continuing inspection of the Rosedale development water storage reservoirs and water pump stations. BACKGROUND 1 At its July 24, 2006, regular meeting, the Utility Board, approved a Professional Services Contract with Civiltec Engineering, Inc. toperform inspection of water storage reservoirs and water pump stations installed by Azusa Land Partners (ALP), the developer of Rosedale. At this time, the contract limit of $383,000 has been reached and no additional payments may be made to Civiltec unless the contract amount is amended. Thislrequest for approval of additional compensation 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 $40,000 to the existing contract will authorize the Finance Department to continue to pay Civiltec up to $423,000 in aggregate. FISCAL IMPACT This request has limited fiscal impact. The City has a partial funding obligation for the 890 reservoirs of approximately 72%. The Sierra Madre pump station, 1023 Reservoir and 1023 Pump station are funded by ALP in their entirety. The approved additional payments to Civiltec will initially be funded from the Capital Improvement Budgei Account 32 -80 -000 -721- 7130/72107A -7130, 2-80-000-721- 7130/72107A-7130, and appropriate amounts will be reimbursed by APL. Prepared by: Chet Anderson, Assistant Director- Water Operations 1 (.It g CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL , FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: NOVEMBER 24, 2008 i SUBJECT: REQUEST FOR PROPOSALS FOR WATER RATE STUDY RECOMMENDATION It is recommended that the Utility Board/City Council authorize staff to solicit proposals from qualified consultants to review adequacy of water rates and make recommendations on any changes to the water rate adjustment of 6% which is scheduled to go into effect July 1, 2009. BACKGROUND In April 2007, Azusa Light & Water conducted a detailed cost of service study for its water utility which resulted in two scheduled 6% rate adjustments. The adjustments were approved at a duly noticed public hearing as required by Proposition 218" The first adjustment went into effect on July 1, 2007, and the second is scheduled to go into effect on July 1, 2009. One of the main justifications for the 2007 rate adjustments was the increased debt service that was assumed with the issuance of the 2006 revenue bonds which were issued to finance construction of the new water treatment plant and other water utility infrastructure. Annual debt service payments were, and still are, expected to increase from $2.98 million in 2007 to $4.527 million by July 2009. Bond issuance agreements require Azusa Light & Water to maintain a debt coverage ratio of 125%. This ratio basically means that'we must have more net income than the cost of annual debt service payments, which guarantees that we can make the payments. Since the water rate changes were adopted in 2007, there have been some significant events which have affected our revenues and costs. The first was the drought which continues to be a concern. The drought prompted a need to aggressively promote water conservation and Azusa's program was very successful and resulted in water consumption being reduced in excess of 30% for multiple months last year. While conservation mitigated water shortage crisis, it reduced revenues significantly. 020 The second issue was a rate modification which went into effect this fiscal year. As you may recall, our meter charge schedule was modified earlier this fiscal year to eliminate a meter charge on multiple units served by a master meter. While this change created more equity in our rate structure, it reduced revenues by about $700,000 annually. Another issue of concern is the need to buy more imported water to meet local demand. Last year, the City saw substantial increases in the cost to purchase water. These increases were well beyond what was estimated when the last rate adjustment was approved, however, staff proposed bi-monthly adjustments to recover purchased water costs through the Replacement Water Cost Adjustment Factor (RWCAF) over this last year, but given the level of conservation accomplished by consumers it is unlikely that all costs were recovered. Given above, it is important for us to review the approved rate adjustment of 6% to see if it will be adequate during the upcoming fiscal year to allow us to meet the debt service coverage obligations included in our bond covenants. Therefore, it is recommended that a Request for Proposals (RFP) be released to have our current rates reviewed to determine if the currently approved 6% adjustment will be adequate for next fiscal year. A scope of work outline for the RFP is attached. With this approval, it is anticipated that the RFP would be released within the next 30 days with consultant selection in January. The consultant study would likely be concluded sometime in March, and would be presented to the Utility Board at that time for any necessary action. Since any change in rates would need to be approved at a duly noticed public hearing, such changes would not be proposed for consideration until May or June of 2009. FISCAL IMPACT The fiscal impact of this proposed study will be reported following receipt of proposals in response to our RFP. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Bob Tang, Assistant Director of Resources Management 021 I REQUEST FOR PROPOSALS I DRAFT SCOPE OF WORK 1. Review Detailed Trial Balance information for water utility for FY 2006-2007 and FY 2007-2008 that is reconciled to audited financial reports. 1 2. Breakdown costs into appropriate categories as was done in 2007 Water Cost of Service Study (to be attached to RFP) and update 5 year cost forecast. 3. Determine the adequacy and the appropriateness of currently approved rates by customer class to support the projected water utility costs in the 5 -year forecast and recommend adjustments, if any, to the approved rates. 4. In formulating cost and revenue forecasts, consider fiscal impacts of following: a. Meter charges formerly billed to multi -dwelling units with master meter b. Replacement Water Cost Adjustments c. Water Conservation (program costs/revenue losses) d. Drought Charge e. Capital project spending f. Variations in purchased water costs g. Use American Water Works Association standards (cost of service principles) 5. Perform revenue adequacy tests of recommended adjustments using actual and forecasted sales data and document findings in a spreadsheet thai allows the City to conduct sensitivity assessments. 022 11. CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: ' NOVEMBER 24, 2008 1 SUBJECT: SINGLE USE BAG REDUCTION PROGRAM RECOMMENDATION It is recommended that the Utility Board/City Council: (1)iapprove of the implementation of a single use bag reduction program; and (2) approve of budget amendment of $10,000 to cover program expenses. j BACKGROUND On April 7, 2008, the City Council approved Resolution 08 C29 to join the Los Angeles County single -use bag reduction and recycling program. The goal of the program is to reduce the disposal rate of plastic grocery bags by 30 percent by July 1, 2010 and by 65% by July 1, 2013, and to also reduce litter. Each year, approximately 6 billion plastic carryout bags are consumed in the County and many of these end up as litter. The County estimates that as much as 25 percent of the litter stream is made up of plastic grocery bags! which do not readily decompose. In September, the County provided Azusa with a public education brochure they prepared which provides practical guidance to grocery stores on how to introduce reusable bags as well as how to recover or recycle plastic grocery bags. The County mailed the booklets along with sample reusable bags to stores located in the unincorporated areas of Los Angeles County, and because of Azusa's agreement to participate in this program the County is urging the City of Azusa to implement some basic program activities. I 023 Staff have reviewed the materials provided by the County and propose the following activities for the City of Azusa: • Mail Azusa stores County Program Resource Packets which outline the program components and available resources. • Offer a limited number of free reusable bags to grocery stores for distribution to customers. Reusable bags are about $2.20 each and a not to exceed budget of $9,000 is proposed. • Help Azusa stores obtain recycling receptacles for plastic bags, decals, posters and other items, if necessary, to facilitate uniform program theme by all stores. • Implement a public education campaign through the use of bus. shelter panels, newsletter, newspaper, and city website with not to exceed budget of $2,000. Program outline and schedule is attached. Generally, staff would begin work on this before end of this calendar year, and then more actively promote the program after the holidays and during the first quarter of next calendar year. FISCAL IMPACT Demand for this program is unknown at this time; however, costs are not expected to exceed $10,000 by end of FY 08-09. AB 939 fees will be used to amend budget account 28-40-750-065- 6625. Prepared by: Liza Cawte, Administrative Technician 024 J SINGLE USE BAG REDUCTION PROGRAM OUTLINE Key Points: • Inform Azusa grocery stores on need to reduce use of plastic grocery bags and encourage their participation in the County program. • Distribute reusable grocery bags to supermarkets in Azusa for distribution to customers. • Establish uniform program theme for reusable grocery bags and recycling of plastic grocery bags. • Assist Azusa grocery stores to obtain receptacles for plastic bag recycling and signage/posters to promote reusable bags and recycling of plastic bags. • Carry out public education campaign and store promotion using bus shelter, newsletter, City website, and newspaper advertisement. Tasks Target Date Completion Cost Date Identify large supermarkets within Azusa jurisdiction 10/6/08 10/9/08- Staff time Completed Send Program Resource Packets, Program Guidelines, and. 12/18/08 ' Staff time Reusable Bag Order Form to supermarkets Follow-up with Store Owners/Managers 12/29/08 I Staff time Development of public education and advertising 1/5/09 Staff time campaign to promote program and participating supermarkets i I Start of public education campaign 1/26/09 Up to $2,000 Order receptacles for plastic bag recycling, posters, and 1/29/08 May use portion of decals to be distributed to participating stores public education budget Purchase of re -usable bags for distribution during City 2/2/09 Up to $8,000 events and participating supermarkets (Customized bag I $2.20/1000) Distribute posters, signage, decals to participating stores 2/26/09 i Staff time Quarterly Program Update to Utility Board beginning April 4/27/09 Staff time 2009 025 � M. - ,boo".. EM N OWM�MPW7 IF%, , `"a4 ivy VIM N OWM�MPW7 IF%, VIM COUNTY OF LOS ANGELES SINGLE USE BAG REDUCTION AND RECYCLING PROGRAM SUMMARY OF KEY PROGRAM COMPONENTS According to research done by the Los Angeles County Department of Public Works, each year approximately 6 billion plastic carryout bags are consumed in Los Angeles County, equivalent to 600 bags per person per year ! Plastic bag litter makes up as much as 25 percent of the litter stream and significantly impacts our communities and the environment2. In Los Angeles County alone, local and State governments spend tens of millions of dollars each year on prevention, cleanup, and enforcement activities to reduce littera. Although plastic carryout bags are inexpensive and have other useful qualities, they have had the propensity to become litter, thus overshadowing these benefits. Communities throughout the State and around the world are grappling with this issue, and searching for ways to reduce the impact that littered carryout have on their quality of life. Although paper carryout bags have a higher recycling rate than plastic carryout bags (21 percent nationally), approximately 117,000 tons of paper carryout bags are disposed by residents Countywide each year, comprisinp approximately 1 percent of the total 12 million tons of solid waste disposed each yeas . Paper bags are less likely to become litter and will biodegrade in the marine environment; however, single use paper carryout bags still are negative contributors to the environment given the substantial amount of energy used, trees felled, and pollution created in their manufacture. I For these reasons, on January 22, 2008, the Los Angeles County Board of Supervisors adopted the Single Use Bag Reduction and Recycling Program (Program), a comprehensive strategy designed to reduce the litter and other environmental impacts of single use carryout bags. The Program seeks to align grocers, retailers, environmental groups, the plastic bag industry, local government, and the public to reduce the consumption of paper and plastic bags while increasing the use of reusable bags, promoting at -store recycling of plastic bags, and educating consumers regarding the need to reduce litter. As a part of the Progiam, the Board of Supervisors established two aggressive benchmarks for reducing I plastic bag use and increasing recycling, using total consumption for Fiscal Year 2007;08 as a baseline: o 30 percent disposal reduction by July 1, 21010 o 65 percent disposal reduction by July 1, 2013 1 Failure to achieve these goals triggers action to establish a County Ordinance to ban the use of plastic bags at affected stores. 9 California Integrated Waste Management Board, Resolution, Agenda Item 14, June 12, 2007 Board Meeting. 2 Waste characterization study conducted by the City of Los Angeles, June 10, 2004. 3 Los Angeles County Department of Public Works. 1 California Integrated Waste Management Board's 2004 Statewide Characterization Study, Table 7. Countywide figure is prorated. 1 Page 1 027 PROGRAM PARTNERS The County of Los Angeles and Participatinq Cities — The County is the facilitator of this Program and will be working with the California Grocers Association and participating cities to provide technical assistance in implementing the Program. The County will utilize its vast public outreach program to promote the Program to County residents, as well as provide specific store outreach assistance. • The County Working Group -- An inclusive group comprised of representatives of the California Grocers Association, American Chemistry Council, Progressive Bag Alliance, local government, and environmental organizations; stakeholders developed the Program through a highly collaborative process. Stakeholders will continue to work together to ensure smooth implementation of the Program. Large Grocery Stores and Retail Stores with Pharmacies -- Each store is encouraged to implement the Program in an effort to reduce single use carryout paper and plastic bags and promote the use of reusable bags Countywide. Program Components To guide participants in implementing the Program, stakeholders came together to develop the following: Store Operations *Definition of Large Supermarkets and Retail Stores -- These definitions identify which stores will participate in the Program. The Program establishes three discrete categories of stores that can participate in the Program at different levels (see page 9 for definitions). • Store -Specific Program Options -- The Program identifies a menu of options for stores to implement on site. Stores are also encouraged to share ideas and implement additional efforts that they develop independently. Public Education and Outreach • Public Education Efforts and Ongoing Communication -- The Program will develop educational materials that promote reusable bags and at -store recycling with a consistent message, and work with County departmental recycling coordinators to ensure distribution of promotional materials to employees and at facilities, events, or other appropriate opportunities. The Program will also establish a framework to communicate and collaborate with the 88 Cities in Los Angeles County and other stakeholders to create a Countywide coordinated and consistent antilitter campaign. • Environmental Message --An environmental awareness message imprinted on each plastic carryout bag distributed by large supermarkets and retail stores will reinforce the efforts of the Program. This message will describe the negative impacts littered plastic bags have on the environment, and the need to use reusable bags. Page 2 028 • Store Participation and Recognition -- The Program establishes minimum participation expectations, including participation I levels and minimum program implementation at each store. In addition, this provides a mechanism to recognize large supermarkets and retail stores as well as other stakeholders who have shown a commitment to participating in the Program. I Technical Components • Reporting and Measurement Methodology -- 'The Program establishes a methodology for accurately measuring the disposal rate of plastic bags, and tracks that rate over time, in order to evaluate the success of the County bag disposal reduction goals. This methodology utilizes AB 2449 data from the California Integrated Waste Management Board to measure the reduction in consumption of plastic bags, increased at -store recycling of plastic bags, and plastic bags recovered at recycling facilities, on a semi-annual basis, while protecting confidential industry information. • Hot Spots and Anti -Littering Campaign -- The Program will identify "hot spots' in the County where plastic bag litter is acute based ori existing studies, and establish additional litter prevention programs, including best management practices and a framework for measuring litter reduction in these hot spots. This will help to ensure that that Program is successful in addressing the litter impact of single use bags. • Recycled Content and Recycling Markets for All Bags -- The Program will develop strategies to reduce the consumption and disposal and increase the recycling of all single use bags and maximize the post -consumer recycled content of all bags provided to the public in order to help develop markets for recyclable materials and decrease use of raw materials. In addition, the Program will work to phase out the purchase and use of single use plastic bags at County departments and facilities, and maximize the recycled content of paper bags, meeting a minimum 40 percent recycled content. eEk I End Li;.., Our Aim Is To Transition From Single Use Carryout Bags To Versatile Reusable Bags Page 3 029 v. p' rt r� i � —.. ... .. sir. ....:edef :., ', y i 1 �;—+W t ��'=���4�� � �� i i ;t ..t.Fi°, p /F���i\J�b1Y n -�� ��k �{ K7�s' M r. "V �s:5$ b� SINGLE USE BAG REDUCTION AND RECYCLING PROGRAM TABLE OF CONTENTS SUMMARY OF KEY PROGRAM COMPONENTS.......!....................................................1 STOREOPERATIONS......................................................................................................7 Stores Subject to the Program .............................. i....................................................9 Store -Specific Program Options and Participation ................................................10 PUBLIC EDUCATION AND OUTREACH.....................!I..................................................13 1 Public Education and Outreach Efforts.................'..................................................15 Recognition Program ......................... I ..................... .................................................. 17 Environmental Message..........................................II.................................................. 17 ProgramWebsite.....................................................!..................................................18 TECHNICAL COMPONENTS.........................................................................................19 Disposal Reduction Rate Methodology.................?..................................................21 Plastic Bag Litter Hot Spots and Litter PreventionProgram..................................23 Maximize Recycled Content of All Bags and Prom ote Bag Recycling Markets.... 24 Page 5 1 031 jj,,-�'111� 11111111jjj 111111, 1 11 1711 "1 -11441111L � Sys prevent pollution. reuse your bags. www.bragaboutyourijag.com THIS PAGE LEFT INTENTIONALLY BLANK This document intended to be printed double -sided Page 6 032 fn I SOL, prevent pollution. reuse your bags. THIS PAGE LEFT INTENTIONALLY BLANK This document intended to be printed double -sided Page 8 034 STORES SUBJECT To THE PROGRAM ( BACKGROUND As one of its first tasks, the County Working Group identified the supermarkets and retail stores that would be subject to the program or phased into the program at a later date. STORE CATEGORIES The Working Group has prepared the following three discrete categories of definitions for stores that will be incorporated now or in the future in the County's Single Use Bag Reduction and Recycling Program. I Category 1 1 Under AB 2449, "large supermarkets and retail stores" are defined as stores that fall under either of the following two categories: • Large Supermarket -- a full -line, self-service, retail store with gross annual sales of $2 million or more and which sells a line of dry groceries, canned goods, or nonfood items and some perishable goods. i • Retail store -- has over 10,000 square feet of retail space that generates sales tax and has a licensed pharmacy. Category 2 Defined as "convenience stores and other appropriate franchise stores whose cumulative square footage exceeds 10,000 square feet." Category 3 1 All stores not included in Categories 1 or 2 that provide single use carryout plastic bags to the public, including small family owned neighborhood stores. Page 9 035 STORE -SPECIFIC PROGRAM OPTIONS AND PARTICIPATION BACKGROUND As part of the Program, each Category 1 large supermarket and retail store is responsible for developing and implementing store -specific programs from a menu of options below. Within each of the following three key elements (numbered 1-3 below), the County Working Group has identified major action items (shown below in green). Each store would be responsible for developing a program that addresses each of the green action items by selecting one or more of the choices suggested. Stores would be expected to meet, at a minimum, the "Bronze" level of participation as shown on the table on page 12. Acknowledging the County's culturally diverse population, programs implemented by the stores should be community -specific, focusing on the store's customer demographics, while still addressing Program goals. County staff is available to assist stores in developing their programs and promoting them through the County's public education resources. Additional resources and electronic copies of this packet are available on our website: www. BragAboutYourBag.org. 1. Training of Store Personnel (Management, Baggers, Clerks, etc.) ® Develop a staff training plan that highlights the impacts bag litter has on the environment and supports the goals of the Program. Choices include: i. Fact sheets for employee guidance ii. Informational DVDs iii. Employee workshops iv. Incentives for participation v. Include information on reusable bags in existing training programs ® Promote the purchase and use of reusable bags and encourage appropriate bagging techniques. Choices include: L Asking each customer if they brought their reusable bags today ii. Encouraging customers to purchase reusable bags at stores iii. Placing a sign at the store front reminding customers to bring their reusable bags iv. Implementing smart bagging techniques, including: 1. Eliminating unnecessary double -bagging 2. Eliminating unnecessary bagging of single items or bulky items v. For stores offering a bag credit, notifying customers of the amount saved on their bill by bringing a reusable bag vi. Increasing the variety of reusable bags offered for sale Page 10 rama ® Encourage customers to recycle their bags at the store. Choices include: I. Placing plastic bag recycling bins in a visible, accessible location ii. Incorporating signs that highlight the purpose of the bins iii. Incorporating messages in public education efforts (see #3 below) that encourage/remind residents to bring clean, dry, empty bags back to the store for recycling 2. Incentives To Reduce Single Use Bag Consumption ® Establish a customer rewards program o otherwise encourage the use of reusable bags and at -store recycling. Choices include: I. Each time customers bring a reusable bag and/or bring bags back to stores: 1. Provide club card reward/gift points (if applicable); 2. Provide a small bag credit; or 3. Donate profits from reusable bag sales/use/recycling revenue to charities and schools to support related causes (litter prevention, wildlife protection, etc.) ii. Giving a free reusable bag to customers who spend a certain amount on groceries 9 ® Establish financial incentives to reduce) plastic bag usage. Choices include: i. Providing a credit for each reusable bag used ii. Charging a per -bag fee for each plastic bag provided to customers 3. Public Education/Awareness ® Within the store, choices include: I i. Sell reusable bags in multiple locations ii. Make reusable bag displays more prominent, located near checkout iii. Run PSAs on monitors at check-out stands, if applicable iv. Display environmental message on shopping carts v. Environmental awareness photo gallery/display in front of store vi. Posters/banners in parking lots or at store front vii. Environmental message on single use paper and reusable bags viii. Have employees wear button with environmental message ® Within the community, choices include: I i. Participate in reusable bag promotions ii. Provide in-kind contributions at reusable bag events iii. Inform the public about the program on the store's website iv. Sponsor school-based education programs v. Create a kids' coloring contest that emphasizes recycling plastic bags and using reusable shopping bags i vi. Provide a link to the County's website, www.BragAboutYourBag.org, on company's website 9 Page 11 i 037 ® Environmental Message I. Imprint on each distributed plastic carryout bag an environmental message describing the negative impacts littered plastic carryout bags have on the environment and wildlife, and the need to use reusable bags. Recommended environmental messages are found on page 18. LEVELS OF PARTICIPATION AND RELATED RECOGNITION Below is a table that identifies the various categories of store -specific programs that should be considered minimum levels of participation (e.g. Bronze) or exceptional levels of participation (e.g. Gold). Stores who implement additional programs will be recognized on the Program website, and all stores meeting the Gold level will be provided recognition by the Los Angeles County Board of Supervisors, such as a plaque or certificate to display within their stores. LEVEL •• MENU OF OPTIONS a 5,�� Store „moo Refa�nmg Supermarket Staff (management,=baggers, clerks, etc J, of Develop a staff training plan that: a) Highlights the impacts of 3 or more 2 2 plastic bag litter b) Supports Program goals Promote the purchase/use of reusable bags and encourage 3 or more 2 1 smart bagging techniques Encourage customers to recycle 3 or more 2 1 bags at store /ncen�ves, for Residents to (aJ use reusable bags,a (b) b�rng plastic bags -back to fhe, Establish customer rewards 2 or more 1 1 program Establish financial incentives 2 or 2 1 t tlLca hon /Awareness Tl{ ymore !Y#�*-!SS �uti7ic - y, Promote reusable bag usage and plastic bag recycling within the 3 or more 2 1 store Promote reusable bag usage and plastic bag recycling within the 3 or more 2 1 community Page 12 038 SQ WCAA Olt SQ . . . . . . . ... Vr '4w 4A:, y. Olt Rd 40 41' AW Ahi .Vim . . . . . . . . ... Vr '4w 4A:, 40 .Vim . . . . . . . . ... Vr '4w 4A:, u p' , k § xF. N . prevent pollution. reuse your bags. www.bragaboutyourbag.com THIS PAGE LEFT INTENTIONALLY BLANK This document intended to be printed double -sided Page 14 PUBLIC EDUCATION AND OUTREACH EFFORTS BACKGROUND Public education and outreach are critical to successfully changing consumer behavior. To bolster the County's Single Use Bag Reduction and Recycling Program, the County Working Group has developed a comprehensive public education and outreach campaign through a collaborative effort. The campaign includes the following: • Production of educational materials that promote reusable bags and at -store recycling with a consistent message • Distribution of promotional materials to County employees, County departmental recycling coordinators, and at facilities, events, or other appropriate opportunities • Communication and collaboration with the 88 Cities in Los Angeles County and Councils of Government to maintain a coordinated anti -litter campaign • Distribution of reusable bags for large-scale giveaways In order to increase awareness of this issue and provide the public with continued reliable recycling messages, the County's public 'education will be informative, engaging, and community -specific. Public education and outreach efforts will also address the diversity of cultures and languages of Los'Angeles County residents. The comprehensive Public Education and Outreach campaign is being launched concurrently with the Program. PUBLIC EDUCATION CAMPAIGN Countywide Public Education Campaign I N Develop branding, which includes an environmental ental slogan and logo, that can be applied to various media and incorporated into educational and outreach materials. County staff also evaluated existing public education materials, such as those developed by the American Chemistry Council (www.BragAboutYourBag.org), and has incorporated them into this packet. I ] Develop a public education plan that focuses' on children and schools. This includes: 1 i. Creating a Program mascot to appear at school assemblies and community events ii. Encouraging school field trips to landfills and material recovery facilities iii. Developing an educational, single use bag litter presentation that can be shown during school assemblies y iv. Incorporating and utilizing environmental clubs in schools v. Holding coloring contests in partnership with local supermarkets vi. Holding artwork/essay contests for grade -school children, where winners (along with their teachers) are honored by the Board of Supervisors vii. Developing an illustrated activity book that encourages families to reduce their plastic bag usage and use reusable bags instead viii. Developing environmental awareness curriculum and programs for public schools Page 15 04.1 ® Raise awareness among consumers of the impacts plastic bags have on the environment and encourage use of reusable bags. This could include: L Posters to hang in and at front of stores ii. Posters and flyers which promote common message iii. Banners to hang in store parking lots and throughout major streets iv. Billboards to place along major streets and on buses v. Advertisements to place in local newspapers and magazines vi. Advertisements to place in bus shelters vii. Public service announcements/commercials to air on local television and cable networks and radio stations viii. Press releases to send to local media outlets ix. Educational outreach material in multiple languages x. Brochures/handouts to distribute at stores and public outreach events A. Decals that consumers can hang/stick in their vehicles xii. Displays and Program fliers promoting the Program at County libraries xiii. Educate the public when taking plastic bags back to stores for recycling, promoting the 'Bag in Bag" concept Reusable Bag Promotions ® Sponsor plastic bag collection events where consumers can exchange a certain number of plastic bags for a reusable bag. ® Distribute free reusable bags and educational material at environmental outreach events. For example, the County participates in dozens of events Countywide each year to promote environmental awareness. Page 16 REA RECOGNITION PROGRAM I Background The County has developed a recognition plan which' will provide a mechanism for recognizing businesses, individuals, educators, organizations, and local governments who have made significant advances in promoting the adoption of reusable bags, increasing recycling of plastic bags, and reducing the us'e of plastic carryout bags. As part of its recognition efforts, the County of Los Angeles will highlight outstanding contributors with an award, in coordination with the Green Leadership Awards program. Award winners would be promoted through local 'media, including the County's www.BragAboutYourBag.org website, and honored by the Board of Supervisors. A summary table that identifies the various categories of store -specific programs that should be considered minimum levels of participation (e.g. Bronze) or exceptional levels of participation (e.g. Gold) is included on page 12. Stores who implement additional programs will be recognized on the Program website; or by the Los Angeles County Board of Supervisors, such as through a plaque or certificate to display within their stores. Below are the categories of the Plastic Bag Recognition Plan. Large Supermarkets/Retail Stores (as defined) Nominees would be evaluated based on their level of participation, creativity, largest reduction in plastic bag usage, and/or other categories' Participation will be measured according to the number of options implemented i as part of the store -specific recycling/outreach program (see draft table below). The awardees would be selected by the County Working Group. Educators Educators may be nominated through a brief essay explaining how the educator has demonstrated exemplary leadership in recycling and reducing plastic bag usage. The awardees will be selected by the County Working Group. Businesses/Individuals Businesses and individuals may be nominated by others through a brief application explaining how they have demonstrated outstanding leadership in recycling and reducing the amount of plastic bags consumed by the public either through point -of - sales or by raising awareness among consumers of the impact plastic bags have on the environment. The awardees will be selected by the County Working Group. i I ENVIRONMENTAL MESSAGE To advance a unified approach to the Program, the County Working Group developed an environmental awareness message to describe theriegative impacts littered carryout bags have on the environment and wildlife, and the need to use reusable bags as a better alternative. This environmental awareness message should be imprinted on each plastic carryout bag distributed by large supermarkets and retail stores, and can also be Page 17 043 utilized in other outreach materials. To provide more flexibility, the Working Group developed four different messages—which-may besatatedsbroughout the year: • . It's Not Just a Bag Issue. It's a BIG Issue. Bring,A Reusable Bag Next Ti • Plastics Last Forever. Protect The Environment By Using Reusable Bags. • Do You Really Need This Bag? Bring A Reusable Bag Next Time. • Do Your Part. Recycle This Bag. ___ 111�_ PROGRAM WEBSITE -- www.BragAboutYourBag.org County staff has developed a dedicated website for the Single Use Bag Reduction and Recycling Program. The website is designed to serve as a convenient, valuable and comprehensive resource that raises awareness of the positive impacts of reusable bags, provides information regarding the environmental impacts of plastic bag litter, and discusses the benefits of using reusable bags in a manner that is user-friendly and visually engaging. The website includes information about upcoming stakeholder meetings, draft working documents, news articles, upcoming environmental awareness events, and other pertinent information. Stores, non -profits, and public agencies are encouraged to provide a link to this website from their websites to make this resource available to their customers and constituents. Page 18 M+, �..•...,.. mem {r,E`'.S . �'4"4< yr `aF' S.8 .-i F�!G 4 �'�G{..x •'x�"+1¢¢, I a 1 tP� _ !` TF -fir-- tiC�� � - . �+ �4"� f � i Tethal. oMOonents i� yl p � g[ q [,r V( ` �4. � �3 •-�, �t5 .,-.� A", Pi , c tii An i prevent pollution. reuse your bags. www.bi-agaboutyoL.irbag.com THIS PAGE LEFT INTENTIONALLY BLANK This document intended to be printed double -sided Page 20 i DISPOSAL REDUCTION RATE METHODOLOGY BACKGROUND i As directed by the County of Los Angeles Board of Supervisors, the County Working Group established the following disposal rate measurement methodology to evaluate the success of the County goals. The methodology must measure the reduction in consumption of plastic bags, increased at -store recycling of plastic bags, and plastic bags recovered at recycling facilities, on a semi-annual basis, while fully protecting confidential industry information. The County also established a framework by which the data submitted is confirmed to be accurate and verifiable on a regular basis. The County Goals are to reduce the disposal rate of plastic bags by: i a. A minimum of 30%, using FY 2007-08 as the baseline, by July 1, 2010. b. A minimum of 65%, using FY 2007-08 as the baseline, by July 1, 2013. 1 Failure to achieve these goals triggers action to establish a County Ordinance to ban the use of plastic bags at affected stores. DISPOSAL REDUCTION RATE METHODOLOGY In response to these requirements, staff has developed the following disposal reduction rate methodology, which includes the following three components: 1) Reduction in consumption of plastic carryout bags; 2) Total number of plastic bags recycled at -stores; and 3) Total number of plastic bags recycled via curbside recycling programs. Disposal Reduction Rate = (Base Year Consumptions — Reporting Year Consumptions) + Base Year Consumption i i Plastic Bags Recycled At Stores During Reporting Year + Base Year Consumption Plastic Bags Recycled via Curbside Collection Programs During Reporting Year Base Year Consumption i s1 7 e Base Year Consumption is the amount of plastic bags generated in Fiscal Year 2007-08, based on data reported to the California Integrated Waste Management Board as'required by AB 2449. 6 Reporting Year Consumption is the amount of plastic bags generated during a specified fiscal year, based on data reported to the California Integrated Waste Management Board as required by AB 2449. Page 21 1 047 * - �,- .— � gri A-� eq, PLASTIC BAG LITTER HOT SPOTS AND LITTER PREVENTION PROGRAM BACKGROUND Because plastic bag litter makes up a significant component of the litter stream, the County Working Group set out to identify 'hot spots' where plastic bag litter is acute, based on existing studies, and establish additional litter prevention programs. The intent is to ensure that the Program is successful in reducing the litter impact of single use bags, by identifying key areas and focusing litter reduction efforts in those areas to augment the Program. i STRATEGIES FOR IDENTIFYING LITTER "HOT SPOTS" Identification of liter "hot spots" in the County unincorporated area will be addressed as follows: • Utilize the City of Los Angeles' Methodology to � identify High Trash Generation Areas or "hot spots" • Work with agencies and interested parties to provide additional relevant data such as: o Catch basin/storm drain locations o Trash or plastic bag quantities collected from different clean up points o Total Maximum Daily Load (TMDL) data o Solid waste collection information related to trash bins, collection trucks and facilities that do not implement "total containment" • Develop maps of litter "hot spots" and litter indicators • Track data gathered over time to measure results I I IMPLEMENTING LITTER PREVENTION PROGRAMS i The County Working Group has developed additional litter prevention programs for implementation and a framework for measuring litter reduction. These litter prevention programs include: 1 • Expanding public education and outreach on plastic bag recycling and reuse o Anti -litter public educational program at stores • Incorporating plastic bags into existing litter prevention programs, such as: o Illegal dumping prevention program o Curbside recycling program o Household Hazardous and Electronic Waste collection program o Permanent waste collection sites (e.g. AVECC) o Waste tire collection events i o Free dump day events o Recycling Market Development Zone (RMDZ) program for market development o Other waste reduction and diversion programs) o Additional bag collection stations at places 1ike recycling centers, schools, public facilities, etc. I Page 23 00 MAXIMIZE RECYCLED CONTENT OF ALL BAGS AND PROMOTE BAG RECYCLING MARKETS BACKGROUND The County Working Group developed strategies to reduce the consumption and disposal and increase the recycling of all single use bags and maximize the post -consumer recycled content of all bags provided to the public in order to help develop markets for recyclable materials and decrease use of raw materials. STRATEGIES In order to achieve these objectives, a variety of strategies will be employed. The County Working Group has developed the following strategies: Development of markets for single use paper and plastic bags recycled in unincorporated areas of Los Angeles County o Provide information and incentives to manufacturers and stores for maximizing their use of recycled content bags o Establish incentive programs to foster development of industries that would use collected single use plastic and paper bags in their productions and operations (e.g. using the RMDZ Program) Maximization of the post -consumer recycled content of single use paper bags in Los Angeles County to decrease use of raw materials o Promulgate legislation and laws that would require making of single use paper bags with post consumer recycled content. o Require procurement of single use paper bags made of post consumer recycled contents in government and other large scale procurement programs. o Educate manufacturers and producers on use of single use plastic bags for manufacturing products with post consumer recycled content. Page 24 050 1. Train employees to identify what films are recyclable: Recycle plastic grocery and retail bags, stretch or pallet wrap, newspaper bags, or film that is labeled with #2 or #4. 9. Store consolidated bags and film material in a clean, dry place. 10. Call or email for information about signage. AVOID food wrap (e.g. Saran Wrap) and any film that has had direct contact with food or any organic material. 2. Identify the estimated quantity of film generated per month—loose film averages 24 lbs/cu.yd.To access an online calculator tool to estimate amounts generated, go to www.plasticbagrecycling.org. 3. Once you determine the amount of film and bags your business generates, ask your hauler if they accept loose film for recycling—alone or with cardboard. 4. You will need to collect and compact film for pick up. Use clear #4 plastic bags and clear bins with bold signage to designate recycling. If your volume is high, it might make sense to invest in a baler and consider backhauling to a central distribution center. For assistance, contact 888-753-7485. 5. If you set out bins for customers to recycle bags, be sure to include clear signage at the bin opening so customers know that it's for recycling—not garbage. 6. Place recycling bins near main entrance for convenient customer access. 11. Keep employees informed on how the recycling program is going and how much film is being recycled. Congratulate them on their contributions to the program. 12. Re-educate employees annually and 7. Assign a designated staff person to monitor recycling ALWAYS educate new employees bins: empty bins regularly and remove contamination 8. Plan how to consolidate material. Move material For additional information including from customer drop off point to designated bins in markets, film identification, and signage go to www.plasticbagrecycling.org. the back of your business for storage. Make sure employees know storage bin is for recycling—not waste.For personal assistance, (Employees often accidently throw trash into bags of please call 888-753-7485 or email film that are left out for recycling.) help@plasticbagrecycling.org 052 Entrances and Exits Consumers want to know where they can recycle their plastic bags. In addition to providing recycling bins in convenient locations, grocers and retailers can help through employee and consumer education. Posters and well -marked recycling bins near entrances. remind customers to return bags for recycling. • Conveniently locate garbage cans for consumers; to place their trash • Ideally, locate garbage cans so consumers reach it before reaching the plastic bag recycling bin to avoid contamination • Use transparent bins and transparent bags to enable better quality control • Place signage near the recycling bin opening to deter consumers from putting trash in the bin j • Avoid recycling bins that resemble garbage cans! Window Posters (16" x 24") i '�szc.mnugn,poynas_m rhe �'if"o" o+psrce „ Recycling Bin JttmSereks* �� Facts Decal i (Tx5„) 0 yf. �m Checkout Stations ;' In addition to posters at entrances, simple decals near bag stands and buttons on cashiers and i baggers serve to inform customers that plastic bag's are recyclable at your store. Also consider a decal with recycling facts at the cashier stand. Employee training is essential to the success of at siecvcsiraeFAcrs :¢:y., store recycling programs. Make sure employees are aware of the recycling protocol. Have them point out the availability of store recycling bins and mention I www.plasticbagrecycling.org. - - - - - - - - - -------- A, Employee Button zO Visit www.plasticbagrecyling•org for information on how to order materials ME Bag marks are another way to educate the consumer. Consider using a mark like the ones below on plastic shopping bags. You can ask your bag supplier to help. In California and New York City retailers are required to include recycling information and specific wording on plastic grocery bags provided to consumers. The bag marks displayed here comply with those requirements. Requirements may vary based on where your store is located so always check the labeling on your bags with qualified experts for your specific location. ti i COMPANY LOGO N I naewisxe w=—%oicwEncamnir core {}� �. • • • ♦ • • ��' f ��I��RAS � A. URS • �` lu • f � •G�S�' �:� 05� prevent pollution. reuse your bags. www.bragaboutyourbag.com 060 14 C -L i fllt A WOIf• A7_USA AGENDAITEM TO: HONORABLE MAYOR AND MEMBERS OF THE AZUSA CITY COUNCIL FROM: JOSEPH F, HSU, DIRECTOR OF UTILITIES DATE: NOVEMBER 24, 2008 SUBJECT: WATER SUPPLY AGREEMENT WITH MILLER COORS LLC. RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve the attached letter agreement with Miller Coors LLC to extend the negotiating period until February 1, 2009, for purposes of negotiating changes to the Water Supply Agreement between the parties. I BACKGROUND The City entered into a Water Supply Agreement ("Agreement") with Miller Brewing Company in 2002. Said Agreement was subsequently assigned to Miller Breweries West, L.P. ("Miller") in 2004 with the City's consent. In general, the Agreement provides, among other things, for the delivery of water to Miller from the City at a certain rates and the use by the City of certain water rights of Miller. The'Agreement was amended on May 1, 2008, and this Amendment No. 1 authorized assignment of the Agreement to Miller Coors LLC. When Amendment No. 1 was prepared, several items were identified for ongoing negotiation and it was believed that parties would adopt a second amendment by September 27, 2008. Discussions have been ongoing! however, outstanding items remain and so it is recommended that the Utility Board approve attached letter agreement to extend the current period for negotiations until February 1, 2009. FISCAL IMPACT There is no fiscal impact associated with an extension Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities the negotiating period. 061 [MillerCoors LLC Letterhead] November _, 2008 City of Azusa 213 East Foothill Boulevard Azusa, California 91702 Attention: Joe Hsu Director of Utilities Re: Amendment No. 1 to Water Supply Agreement entered into as of May 1, 2008 ("First Amendment") between MillerCoors LLC ("MillerCoors") and the City of Azusa, California ("City") Ladies and Gentlemen: MillerCoors and the City are parties to the First Amendment and to that certain Water Supply Agreement dated February 26, 2002 (as so amended, the "Agreement"). Pursuant to Section 4(b) of the First Amendment, MillerCoors and the City are negotiating certain modifications to the Agreement and, in that regard, have exchanged draft agreements and discussed further modifications thereto. Under the provisions of Section 4(b) of the First Amendment, since the negotiations were not completed within 150 days of execution of the First Amendment (that is, by September 27, 2008), MillerCoors, at its sole option, may terminate the Agreement or elect to allow the Agreement to remain in effect in its current form, which election must be exercised by written notice on or before November 26, 2008. While the parties anticipate that the negotiations referenced above should be concluded by November 26, 2008, in light of the pendency of the negotiations, the parties have agreed to extend the period by which Miller may make the elections set forth in Section 4(b) of the First Amendment. Accordingly, MillerCoors and the City agree that the provisions of Section 4(b) of the First Amendment shall be modified so that, in the event that the above -referenced negotiations are not completed on or before February 1, 2009, MillerCoors at its sole option, by providing written notice to the City by such date, may (1) terminate the Agreement, as amended by the First Amendment, or (2) allow the Agreement, as amended by the First Amendment, to remain in effect in its current form. 062 City of Azusa Mr. Joe Hsu November _, 2008 Page 2 Please indicate your agreement with the foregoing by ex ecuting this letter where indicated below. Very truly yours, MillerCoors LLC By: Name: Title: Agreed and accepted this day of City of Azusa, California By: Name: Title: 063 Site curbing installed Roadway subgrade placed Detention pond overflows and storm drains installed DYK reservoir ready for color coat O&M lab counters installed O&M Bldg heating and air condifloning installed O&M Bldg interiot painting, locker mom soutfitted,.kitchen counters In Reservoir finished water bypass line installed and painted Finished water pumps installed and test pumped Chemical Feed building piping installed and handrail installed Potassium Permanganate system submittals not complete Membrane Building piping Installed and painted. floor grating being installed Membrane exterior tanks and piping installed and painted 'OCTOBER PROGRESS PAYMENT REQUEST: $613,973.90 TOTAL PAID TO DATE $32,607,531.99 AMOUNT TO ESCROW $2,257,328.78 PROJECT PERCENT COMPLETE" 89.70% $36,351,288.38 Approved July 23, 2007 Approved Sept 24, 2007 Approved Nov 26, 2007 Approved Feb 25, 2008 Approved July 28, 2008 Approved Oct 27, 2008 $445,788.38 OCTOBER PTD $31,993,558.09 'Fixed amount -includes $68,219.32 withheld in October Final Completion Date is November 13. As of the date of this report, additional time extensions have not been granted. SSC has not achieved substantial completion: $1,000 per calendar day liquidated damages are being applied and 10% retainage has been reinstated. MONTHLY REPORT NOVEMBER, 2008 PROJECT: MEMBRANE TREATMENT UPGRADE OF THE CANYON FILTRATION PLANT PROJECT NO.: WVF•207 GENERAL CONTRACTOR: SSC CONSTRUCTION INC. DESIGN ENGINEER: BLACK & VEATCH INC. CONSTRUCTION MANAGER: BLACK & VEATCH, INC. PROJECT CONTRACT AMOUNT: $35,905,500.00 EXTRA DAYS CHANGE ORDERS TO DATE: $100,642.76 10 $164,975.54 14 $57,261.33 4 $22,693.21 0 $9,454.31 24 $90,761.23 2 54 MONTHLY ACTIVITIES Construction progress meetings were held Nov. 5, & Nov. 20 Total CO's As of 11119/08 Site curbing installed Roadway subgrade placed Detention pond overflows and storm drains installed DYK reservoir ready for color coat O&M lab counters installed O&M Bldg heating and air condifloning installed O&M Bldg interiot painting, locker mom soutfitted,.kitchen counters In Reservoir finished water bypass line installed and painted Finished water pumps installed and test pumped Chemical Feed building piping installed and handrail installed Potassium Permanganate system submittals not complete Membrane Building piping Installed and painted. floor grating being installed Membrane exterior tanks and piping installed and painted 'OCTOBER PROGRESS PAYMENT REQUEST: $613,973.90 TOTAL PAID TO DATE $32,607,531.99 AMOUNT TO ESCROW $2,257,328.78 PROJECT PERCENT COMPLETE" 89.70% $36,351,288.38 Approved July 23, 2007 Approved Sept 24, 2007 Approved Nov 26, 2007 Approved Feb 25, 2008 Approved July 28, 2008 Approved Oct 27, 2008 $445,788.38 OCTOBER PTD $31,993,558.09 'Fixed amount -includes $68,219.32 withheld in October Final Completion Date is November 13. As of the date of this report, additional time extensions have not been granted. SSC has not achieved substantial completion: $1,000 per calendar day liquidated damages are being applied and 10% retainage has been reinstated. Comparison of Electric Rates Southern -California -Utilities va Residential ($ / kWh) Glendale $0.1599 SoCal Edison $0.1500 Imperial District $0.1337 Pasadena $0.1310 Burbank $0.1290 Azusa $0.1201 LADWP $0.1129 Anaheim $0.1124 r 3 Y `m CL 613 Residential Rate Comparison GWoGa��d`5%QasaderW�cbart, ptiOsa Rates current as of 5/9/08 — based on pr Residential class consumption average 01 Commercial ($ / kWh) Glendale $0.1614 SoCal Edison $0.1460 Burbank $0.1320 Imperial District $0.1288 Azusa y W-$0.1243 Anaheim $0.1224 Pasadena $0.1160 LADWP $0.1155 Commercial Rate Comparison *Rates current as of 5/9/08 — based on Commercial class consumption average E00" 0 eta \O Pti P��e a5aaer P��1Q Industrial ($ / kWh) Glendale $0.1415 Burbank $0.1200 Pasadena $0.1160 SoCal Edison $0.1090 Azusa $0.1063 Anaheim $0.1032 LADWP $0.0933 3 Y `m CL vs n Industrial Rate Comparison Caww gulOP Sade` '0 *Rates tiusa e�c<` Q Pa Ga�� P rar ��1 *Rates current as of 5/9/08 — based on SO P Industrial class consumption average 00