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Agenda Packet - January 26, 2009 - UB
AZUSA . U4N} I 'IIATIR AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD/AZUSA CITY COUNCIL i AZUSA LIGHT & WATER JANUARY 26,2009 729 N. AZUSA AVENUE 6:30 P.M. AZUSA,CA 91702 AZUSA UTILITY BOARD ANGEL A.CARRILLO CHAIRPERSON URIEL E. MACIAS JOSEPH R.ROCHA VICE CHAIRPERSON 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(5) minutes maximum time, subject to compliance with applicable meeting rules. Questions to the speaker or responses to the speaker's questions or comments shall be handled after the speaker has completed his/her comments. Public Participation will be limited to sixty (60)minutes time.) A F i 001 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 SPECL4L CALL ITEMS. 1. Minutes. Recommendation: Approve minutes of regular meeting on November 24, 2008 as written. . UB Mm No 24.pdf 2. Approval of Agreement with Shell Energy North America. Recommendation: Approve pro-forma Edison Electric Institute (EEI) Agreement with Shell Energy North America and authorize the Mayor to execute agreement. 01.1 Shell Energy Agrmt.pdf 3. Approval of Procurement of Multi-Year Summer Electric Peaking Power. Recommendation: Approve the following resolution: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,CALIFORNIA,AUTHORIZING THE PROCUREMENT OF MULTI-YEAR SUMMER ELECTRIC PEAKING POWER. Reso Sum Pkg Rew_Pkg_Pwr_Proc. Proc.pdf pdf 4. Adoption of Legislative Principles Regarding Renewable Energy. Recommendation: Adopt principles regarding Renewable Portfolio Standards (RPS) and authorize staff to advocate for or against legislation based on principles. RPS Legislatbn.pdf 5. Approval of Water Rate Study. Recommendation: Approve the proposal of HDR Engineering for water rate study in amount not-to-exceed $31,767 and authorize City Manager to execute Professional Services Agreement. Water Rate CostofServProposal- Study.pdf HDR.pdf 2 002 6. Approval of Amendment with Athens Services for Fuel Cost Adjustment. Recommendation: Approve the following resolution: A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, APPROVING THE TWELFTH AMENDMENT TO THE EXCLUSIVE FRANCHISE AGREEMENT WITH ARAKELIAN ENTERPRISES TO AMEND THE SERVICE RATES AND FEES FOR THE PERIOD OF JANUARY 1, 2009 THROUGH JUNE 30,2009. 1..I Athens-FuelCost-v2. Reso-Fuel Cost.pdf pdf 7. Approval of Funding Request by California Resource Connections (CRC). Recommendation: Approve CRC proposal to fund (1) backyard composting program, and (2) river litter clean up event during April Clean and Green month for a total amount of$11,300. CRC Proposal.pdf CRC Funding Request.pdf 8. Approval of Continued Participation in Used Oil Block Grant. Recommendation: Approve the following resolution: A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA,APPROVING PARTICIPATION IN USED OIL AND HHW GRANTS ADMINISTERED BY THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD. E I ! i Used Oil Report.pdf Reso-UsedOIIBlkGran UBG14GrantAgr&Exh t.pdf ibits.pdf 9. Rejection of Bid for Project LD2008-3. Recommendation: (1)Reject the sole bid received for Project LD2008-3, Refurbish Existing Chain Link Fence at Azusa Substation; and (2) authorize staff to solicit informal bids. Bid ReJectn-AzSubFenoe. 10. Approval of Contract Award to Southwest Graphic Services. Recommendation: Approve the award of contract to Southwest Graphic Services for artwork and printing of Utility informational materials for 18 months with an optional two-year extension at a cost not-to-exceed$16,000 for FY 08-09. Pub Info-Contract.pdf I 3 ()03 1 11. Notice of Completion: Project W-243, Water Treatment Plant Water Main and Sewer Forcemain Installation. Recommendation: Accept Project W-243 and direct City Clerk's Office to execute NOC and have same recorded at the Los Angeles County Recorder. NOC-W-243.pdf NOC-W-243-Form pd - f 12. Request for Proposals (RFP) for Water Main Replacement Proiects. Recommendation: Authorize staff to solicit proposals from qualified consultants to prepare plans and specifications for water main replacement projects. RFP Wtr Main RFP Wtr Main tst.pdf Design.pdf Letter-Scope.pdf 13. Additional Compensation to SSC Construction Incorporated for Proiect WVF-207. Recommendation: Approve Change Order No. 13 in amount of$71,407.91 and extension of 34 days to the SSC Construction Incorporated contract for Project WVF-207, Canyon Filtration Plant Membrane Treatment Upgrade and Expansion. �I CO-SSC.pdf CO-SSC-BV-Ur.pdf 14. Purchase of Single Drum Pulley and Bullwheel Tensioner. Recommendation: Approve purchase of single drum puller in amount not-to-exceed $63,287.46 from Sherman & Reilly Incorporated and purchase of bullwheel tensioner in amount not-to-exceed $34,804.38 from Wagner Smith Equipment Company. EIecDNEquipPurch.p df 15. Additional Compensation to J. DeSigio Construction Incorporated for Protect W-238. Recommendation: (1)Approve a budget addition of$77,508.81 and extension of 13 days to the DeSigio Incorporated contract for construction of Project W-238, Water Main Replacement Project; and (2) authorize staff to negotiate with Contractor on extra cost claims and liquidated damages resulting from construction of said project. L CO-W-238.pdf 4 004 C. STAFF REPORTS/COMMUNICATIONS 1. Allowable Uses of Public Benefits Funds PBC Report.pdf Attny Opinion.pdf 2. Monthly Update on Water Treatment Plant WTP Moly Update.pdf 3. Greenpath North Transmission Project Update GmPath-Rpt.pdf GrnPath-SCPPA.pdf GrnPath-Artide.pdf 4. Garnet Wind Energy Hedging Transaction Report Hedging Report.pdf Hedging-Spdsht.pdf 5. San Gabriel Valley(SGV)Tribune Article on La Nina QLI LaNina.pdf 6. SGV Tribune Article on Snow Packs Affecting Water Supply SnowPack.pdf 7. Grand Opening of Fresh and Easy,February I 1 (Verbal) D. DIRECTOR'S COMMENTS 1 1. + Consideration of gating the catwalk 2. p Resident concerns at Rancho Park 5 ()d5 E. ADJOURNMENT 1. Adjournment. "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 materials 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." b f) i samplo .T4 AZiJSA LI4Ni t SA CITY OF AZUSA MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL MONDAY,NOVEMBER 24,2008—6:30 P.M. The Utility Board/City Council 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. Chairman Carrillo called the meeting to order and Mr. Jorge Rosales led in the salute to the Flag. Call to Order ROLL CALL Roll Call PRESENT: BOARD MEMBERS: GONZALES,CARRILLO, MACIAS,HANKS,ROCHA ABSENT: BOARD MEMBERS: NONE Also Present ALSO PRESENT: City Attorney Ferre, City Manager Delach, Assistant City Manager Makshanoff, 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 Supervisor Tapia, Azusa Police Lieutenant Momot, City Clerk Mendoza, Deputy City Clerk Toscano. Public Participation Pub Part Mr. Art Morales addressed the Board Members expressing his opinion regarding the following: A. Morales announcements on City and Utility Reader Boards;free swim and an explanation regarding why it cannot be Comments accomplished with Public Benefits Funds; clarification on minutes; report on trash, and re-location or reconfiguration of the Light and Water customer drop box for payment of bills. The CONSENT CALENDAR consisting of Items B-1 through B-11, was approved by motion of Board Consent Cal Member Hanks, seconded by Chairman Carrillo and unanimously carried with the exception of items Appvd B-3, B-9 and B-11, which were considered under the Special Call portion of the Agenda. Min appvd 1. The minutes of the regular meeting of October 27, 2008, were approved as written. I Wrksp min 2. The minutes of Utility Board Workshop on October 27, 2008, were approved as written. appvd 3. SPECIAL CALL ITEM. Spec Call 4. Plans and specifications for Project LD2008-3,furnish, install,refurbish,and secure the existing chain Plans &Specs link fencing at Azusa Substation—809 North Angeleno Avenue, were approved. Proj. LD08-3 007 5. Plans and specifications for Project LD20084,furnish and installation underground conduits and street Plans&Specs lights along Ranch Road north of Sierra Madre were approved and the City Clerk's Office was Proj.LD08-4 authorized to advertise for bids. 6. The addition of$30,000 to Hunter Electric blanket purchase order to fund additional work necessary to Hunter Elect repair damage arising from the theft of wire and control devices from emergency generators at Wells No. Add PO 3 and 11, was approved. 7. Formal bidding procedures were waived and the purchase of one Ford F150 pickup truck and one Ford Pur Ford F150 F250 truck were awarded to Downtown Ford Sales under California Multiple Award Schedule(CMAS &F250 Contract No. 1-08-23-20) in amount of$42,148.28, including tax and delivery. 8. Formal bidding procedures were waived and the purchase of one Model I-ERV-750 Automated Valve Pur Auto Valve Operator with Datalogger and software was awarded to E.H.Wachs Company in amount of$15,227.68, Operator w/ including tax and delivery. Datalogger 9. SPECIAL CALL ITEM. Spec Call 10. Staff was authorized to solicit proposals from qualified consultants to review adequacy of water rates and Proposals make recommendations on any changes to the water rate adjustment of 6%which is scheduled to go into Water Rate effect on July 1, 2009. Study 11. SPECIAL CALL ITEM. Spec Call SPECIAL CALL ITEMS Special Call Board Member Rocha addressed item regarding underground electric substructures notice of completion Rocha asking if there were any change orders;staff responded that there were not and the project was completed on Comment time. Moved by Board Member Macias,seconded by Board Member Rocha and unanimously carried to approve and NOC Under- accept the Notice of Completion for Project LD 2008-2 to.fumish and install underground electric ground substructures along Gladstone Street,Azusa Avenue,and Arrow Highway and to direct the City Clerk's Office substructures to have notice executed, and recorded in the Office of Los Angeles County Recorder. Proj. LD 08-2 Board Member Rocha addressed the Civiltec Engineering Reimbursable compensation item and asked when Rocha the project is expected to be completed and if the reimbursable$40,000 completes the work. Staff responded Comment that the construction work has been completed;the additional funds should complete the project;but staff is going through a list of items to ensure completion. Moved by Board Member Macias,seconded by Board Member Rocha and unanimously carried to approve the Civiltec Engr reimbursable addition of$40,000 to Civiltec Engineering Contract for continuing inspection of Rosedale Reimburs add Development water storage reservoirs and water pump stations, was approved. Board Member Rocha asked that single use bags be available for distribution at the Christmas Program and Discussion that they be available for distribution at the Christmas Program and asked that the messages be made available Recycling in Spanish. Board Member Macias asked that corporate sponsorship be sought to support the issue. Program Administrative Technician Cawte displayed a sample bag from the County stating that it could be customized, Bags and she also displayed a resource package which will be distributed to local stores. Moved by Board Member Macias,seconded by Board Member Rocha and unanimously carried to approve the Single Use Bag implementation of a single use bag reduction program and a budget amendment of$10,000 to cover program Reduction Pgm expenses. 11/24/08 PAGE TWO SCHEDULED ITEMS Sched Items Director of Resource Management Tang presented information regarding the Water Supply Agreement with Dir of Res Miller Coors LLC, stating that negotiations have been ongoing regarding the previously formulated rate Management adjustment process, and that certain sections need clarification;.he requested that a letter extending the Wtr Supply negotiating period to February 2009 in order to finalize an amendment,be approved. Agreement Moved by Board Member Gonzales,seconded by Board Member Hanks and unanimously carried to approve Letter Agmt letter of agreement with Miller Coors LLC to extend the negotiating period until February 1, 2009, for Millers appvd purposes of negotiating changes to the Water Supply Agreement between the parties. Staff Rpts STAFF REPORTS Director of Resource Management Tang presented the Monthly Update on Water Treatment Plant stating that Monthly WTP the project is approximately 90%complete and they are facing some delays in the completion;the contractors Update have slowed down. Assistant Director of Water Operations Anderson addressed the issue stating that the project is past its C. Anderson completion date,November 13'",and$1,000 a day is being applied,the 10%retention has been reinstated and Comments they have provided a revised schedule. He and City Attorney Ferre responded to questions posed about the Add'I retention percentage, the leverage it entails, project commencement — approximately December 19", discussion production of a product, and Department of Health Services testing. Assistant to the Utilities Director Kalscheuer provided and update on the negotiations with Athens Services C. Kalscheuer stating that staff sent a letter to Athens inviting proposals to address the concerns the City has Athens Neg regarding going to MRF waste;receiving a commitment to provide low cost rates for an automated Update and system; having authorization to permit commercial recyclers to operate in the City and be able to City Mgr charge for their services; and full disclosure of what is going into the MRF in terms of tonnage,and Comment what is going to the landfill in order the that the City will know what is being diverted at the MRF to make sure residents aren't paying excess disposal fees;Athens has not responded. He stated that an RFP was mailed to five consultants and four have responded: HF& H Consultants, Alternative Resources, Inc., MSW Consultants, and Shawn Environmental; proposals were mailed to the City Attorney's office; City Manager Delach reported that he had received a call from Athens regarding above issues and will be following up with them. Director of Resource Management Tang presented the Southem California Electric Utilities Retail Rate Electric Rate Comparisons stating that Azusa's rates are very favorable. Comparisons Discussion was held regarding the December Utility Board Meeting and it was consensus of the Meeting of 12/22 Canceled Board Members that the meeting of December 22nd be cancelled and that any business that may arise could be handled at the Council meeting of December 15, 2008 or January 5, 2009. Director of Resource Management Tang presented an update on the drought stating that as of today the B. Tang canyon level is between 40-50 feet higher than last year;Watermaster replacement water cannot be Update on counted on for this year; the Four City District delivery which comes from northern California will Drought be about 1/3 of what was supplied last year, and rainfall will have to be a main source of water for this year. He stated that the staff needs to continue the conservation message;additional discussion was held regarding water. 11/24/08 PAGE THREE 009 DIRECTOR'S COMMENTS Dir Cmts Director of Resource Management Tang reported on the Water Conservation and Dry Parkways stating that Water there have been some complaints that Community Improvement is fining residents due to dry parkways or Conservation barren landscape;he spoke to Community Improvement and found that they may be isolated incidences and Complaints enforcement actions have been minimal; they are now temporarily suspending fines due to unsightly landscaping.He asked that staff be advised of any complaints in order that they may resolve the problem with Community Improvement and residents. Discussion was held regarding special permits for alternative landscaping and/or the City offering mulch and it was pointed that it was part of a recent backyard composting workshop; staff will look into options offered. Board Member Macias requested clarification on the construction on Sierra Madre and asked when the project Macias will be completed; City Manager Delach responded that he would get that information to him. Comment It was consensus of the Board Members to adjourn. Adjourn TIME OF ADJOURNMENT:7:21P.M. SECRETARY NEXT RESOLUTION NO.08-C110. 11/24/08 PAGE FOUR 010 r' F • - t_5%5.. ..�.5t AZUSA L CXL 4 W AIIA CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 26, 2009 SUBJECT: APPROVAL OF PRO-FORMA EEI AGREEMENT WITH SHELL ENERGY NORTH AMERICA RECOMMENDATION It is recommended that the Utility Board/City Council approve the pro-forma EEI agreement and authorize the Mayor to execute the agreement upon the preparation of execution copies. BACKGROUND The City has entered into pro-forma enabling agreements in the past several years for the purchase and sale of wholesale electricity. Due to the current financial crisis, the market participants are becoming increasingly cognizant of the need to complement/revise certain terms and conditions to the pro-forma enabling agreements. The pro forma EEI agreement with Shell Energy North America will provide clarity in financial credit terms for power transactions between Shell Energy North America and the City. A Staff has reviewed the proposed agreement and has found it to be acceptable and is therefore recommending execution of the agreement. Due to its size, the pro forma agreement and the addendums to the agreement are available for public review at Azusa Light and Water 2"d floor office counter. FISCAL IMPACT No direct fiscal impact is anticipated from approving this agenda item. Prepared by: Bob Tang, Assistant Director Resource Management AZUSA CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESgr DATE: JANUARY 26, 2009 SUBJECT: AUTHORIZATION TO PROCURE MULTI-YEAR SUMMER PEAKING ELECTRIC POWER TO REDUCE ENERGY PRICE RISKS RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve by Resolution authorizing the staff to procure multi-year summer peaking electric power in accordance with the process and within the parameters described below to reduce energy price risks. BACKGROUND Over the years, the city has developed a portfolio of long term, medium term and short term electric power resources to serve city's electricity needs. City's long term power resources currently consist of (a) San Juan coal fired generation; (b) Palo Verde nuclear generation; (c) Hoover hydro generation; (d) HighWinds generation; (e) Garnet Wind generation; (f) SGVMWD small hydro generation; and (g) MWD small hydro generation. In developing the medium term power resources, the city has consistently relied upon power purchase agreements with third parties which include alternating contract periods or durations (one to five-year contracts). This strategy has been motivated by the desire of maintaining flexibility and adaptability in the ever changing power markets and to more precisely match city's power resources needs. We successfully utilized this strategy in the procurement of summer peaking electric power in 2002, 2004 and 2006. We typically engage in such medium term procurement in even-numbered years. In light of the expiration of existing summer peaking power contract with the Department of Water Resources at the end of 2009 summer season and the steeply declining energy markets due to economic downturn, staff believes now is the appropriate time to consider medium term power procurement. 012 5 Staff is recommending the following process and parameters to be authorized in the procurement of medium term summer peaking electric power: 1. Authorized staff: The Director of Utilities or Assistant Director — Resource Management 2. Authorized Product: Up to 15 MW of summer peaking electric power for the months of June through September 3. Allowable duration of the transaction: Up to 5 years in duration commencing June 2010 and ending no later than September 2014 4. Trigger prices: The prices of summer peaking electric power that could trigger the procurement shall not exceed $85/MWh on the average. $85/MWh was informally quoted in recent weeks 5. Frequency of trigger: The authority to trigger the procurement shall not be exercised more than once during any 12-month period, e.g., if a procurement took place in January 2009, then the next time the authority can be exercised again shall be no sooner than January 2010 unless further authorized by Utility Board/City Council 6. Solicitation process: Whenever feasible, a formal Request for Proposal (RFP) will be utilized. However, if due to market volatility; lack of creditworthy counterparties to transact and/or other factors making the RFP process infeasible or ineffective, then staff will conduct the solicitation in the most competitive manner possible 7. Reporting_ Staff shall report to Utility Board/City Council in the regularly scheduled Utility Board meeting immediately subsequent to the procurement, providing price information; duration; start and end dates of the transaction; the transaction volume and the solicitation process used Staff believes that the process and the parameters outlined above will provide sufficient flexibility and appropriate controls/oversight to enable effective and efficient procurement of 2010-2014 summer peaking electric power. The attached Resolution will formalize the authorization of staff to conduct such transactions. FISCAL IMPACT The process and the parameters outlined above and memorialized in the Resolution for managing summer peaking power procurement will provide expanded means for the utility to manage its risks and thus is expected to have a beneficial fiscal impact overall in the long term. Prepared by: Bob Tang, Assistant Director of Resource Management 013 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AUTHORIZING THE PROCUREMENT OF MULTI-YEAR SUMMER ELECTRIC PEAKING POWER WHEREAS, the City has developed a portfolio of long term, medium term and short term electric power resources to serve city's electricity needs; and WHEREAS, city has relied upon power purchase agreements with third parties which include alternating contract periods or durations (one to five-year contracts) for the summer electric peaking power; and WHEREAS, in light of the expiration of existing summer peaking power contract at the end of 2009 summer season and the steeply declining energy markets due to economic downturn, staff believes now is the appropriate time to consider medium term power procurement; and WHEREAS, due to the price volatility of power markets, it is warranted that City Council authorize the staff to engage in the procurement within the specific parameters and guidelines to efficiently carry out the procurement; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the City Council authorize the procurement of medium term summer peaking electric power in accordance with the following parameters and guidelines: 1. Authorized staff: The Director of Utilities or Assistant Director—Resource Management 2. Authorized Product: Up to 15 MW of summer peaking electric power for the months of June through September 3. Allowable duration of the transaction: Up to 5 years in duration commencing June 2010 and ending no later than September 2014 4. Trigger prices: The prices of summer peaking electric power that could trigger the procurement shall not exceed $85/MWh on average 5. Frequency of trigger: The authority to trigger the procurement shall not be exercised more than once during any 12-month period, e.g., if a procurement took place in January 2009, then the next time the authority can be exercised again shall be no sooner than January 2010 unless further authorized by the City Council 6. Solicitation process: Whenever feasible, a formal Request for Proposal (RFP) will be utilized. However, if due to market volatility; lack of creditworthy counterparties to transact and/or other factors making the RFP process infeasible or ineffective, then staff 014 will conduct the solicitation in the most competitive manner possible 7. Reporting: Staff shall report to Utility Board/City Council in the regularly scheduled Utility Board meeting immediately subsequent to the procurement, providing price information; duration; start and end dates of the transaction; the transaction volume and the solicitation process used SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED THIS 26th day of January, 2009. Joseph Rocha, Mayor ATTEST: Vera Mendoza, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. 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 26th day of January, 2009. AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Vera Mendoza, City Clerk 015 ' L .4 t q C MM AZUSA LI4M1 { WAl[� CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES!llr DATE: JANUARY 26, 2009 �� W SUBJECT: LEGISLATIVE PRINCIPLES REGARDING RENEWABLE ENERGY RECOMMENDATION It is recommended that Utility Board/City Council adopt the principles included in this report regarding Renewable Portfolio Standards (RPS) and authorize staff to advocate for or against RPS legislation based on these principles. BACKGROUND This update provides an overview of potential renewable energy legislation in the current legislative session and proposes certain principles to guide staff in advocating the City's position to legislators. Last year, there were several significant developments in California electric industry that would likely have profound impact to the industry in the years to come. Among the notable developments were: • The adoption of the Climate Change Scoping Plan (Scoping Plan) on December 11, 2008 by the California Air Resources Board to implement the AB32's greenhouse gas reduction mandate; • The Governor's Executive Order S-14-08 (Executive Order) issued on November 17, 2008 calling for additional action in renewable energy; energy conservation and efficiency and transmission infrastructures in efforts to reduce global warming and greenhouse gas emissions One common theme of the Scoping Plan and the Executive Order is a higher mandate for Renewable Portfolio Standard (RPS) than what current law requires. The current law requires 20% RPS by 2010. The Scoping Plan and the Executive Order will raise the RPS to 33% or more by 2020. Although still early in thelegislative session, there are already several-major raft bills dealing with the RPS issue, e..g:AB64 (Krekorian, ass, and Blakeslee) and IB 14 (Simitian, Kehoe, Padilla, and Steinberik�1 016 In general, the California municipal utility community is very supportive of a higher RPS goal. In fact many municipal utilities have already voluntarily adopted higher RPS goals than what current law requires, e.g., in September 2008 Azusa's Utility Board adopted an RPS goal of no less than 33% by 2020 for Azusa. To assist the municipal community in the upcoming legislative debate on the RPS issue, the state municipal utilities are proposing certainbaprinciples� that we would support and champion in any legislation. These principles are: �• Support a 33% RPS goal by 2020 as a necessary tool to meet State's GHG reduction objective; • Support a common methodology for defining; reporting and tracking of eligible renewable resources; • Support a limited audit role for the California Energy Commission as the regulations / apply to municipal"systems to ensure compliance;_ uq lw • Support continued local flexibility in setting procurement targets in achieving the RPS goal and local governance approval of renewable contracts; Support the removal of barriers to new transmission necessary to support the development of new renewable resources; • Support a more expansive use of out-of-state renewable energy resources and tradable renewable energy credits toward RPS compliance; J • Support limited exemptions from RPS compliance for small municipal systems that are currently fully resourced; • Oppose any new penalty authority for failure to meet RPS procurement targets Staff intends to continue to work with the municipal community to promote these principles in any potential RPS legislation. FISCAL IMPACT The City has already voluntarily adopted RPS goal of no less than 33% by 2020. Thus our support of RPS goals through legislation along the enunciated basic principles above is not expected to cause incremental fiscal impact to the electric utility more than what we already expect. Prepared by: Bob Tang, Assistant Director of Resource Management 017 AZUSA CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 26, 2008 SUBJECT: WATER RATE STUDY PROPOSAL RECOMMENDATION It is recommended that the Utility Board/City Council approve proposal by HDR Engineering for not-to-exceed amount of $31,767 and authorize the City Manager to execute Professional Services Agreement. BACKGROUND In November 2008, the Utility Board authorized staff to release a request for proposals (RFP) to conduct a third party review of the Utility's water rates to determine if they are adequate given reduced revenues resulting from aggressive promotion of water conservation and other changes to water rates this last year. Two proposals were received in response to the City's RFP, one from HDR Engineering in amount of $31,767, and one from HFH Consultants in amount of $51,110. Both firms had highly qualified managers overseeing their proposed project plans, and both presented excellent work plans in response to the RFP. One difference with the work plans was with respect to looking at how to manage the loss of revenues associated with drought declarations and imposition of the drought charge or emergency rate structure. HDR Engineering included this work with their proposed scope, whereas HFH Consultants recommended this work, however, stated that this work was not included in their cost proposal, implying that this would cost extra. Q1$ All things being roughly equal--with exception of total not-to-exceed cost and minor technical differences in the scopes of work, it is staff recommendation to have HDR Engineering perform the study at the lower proposed cost and save $19,343. Following approval by the Utility Board, staff will prepare agreement for execution by City Manager. Once the notice to proceed is issued, the study is expected to be completed within 10 weeks. Currently, there is an approved rate adjustment of 6% set to go into effect July 1, 2009. The study will evaluate the adequacy of the approved rate adjustment to satisfy our bond debt service obligations. If any adjustment in rates beyond the 6% is necessary, such adjustment would have to be approved at a duly noticed public hearing. FISCAL IMPACT The study will cost $31,767, including one on-site meeting. Funding for this study is available from the approved water operating budget. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Bob Tang, Assistant Director of Resources Management Attachment W1 CostOfServProposaF HDR.pdf 019 ONE • 1 1 i ' January 12, 2009. Mr. Cary Kalscheuer Assistant to the Director of Utilities Azusa Light&Water .. 729 North Azusa Avenue Azusa,CA 91702 RE: Proposal for Cost of Service Study for Municipal Water Utility Dear Mr.Kalscheuer; We are pleased to submit our proposal summarizing our team's qualifications,scope of work,.and cost estimate.We believe HDR's team provides the expertise and experience needed to successfully re-evaluate the Azusa Light&Water's(AL&W's)water rates and revenue projections, and evaluate other cost-of-service issues. Some.of the attributes of our team include: • .HDR is nationally recognized for its expertise in municipal utility financial planning and rate analysis:Our proposed team,has successfully performed hundreds of similar , studies throughout California and the U.S. • HDR's 'staff is excepdonally.strong.Our project manger,Greg Clumpner,prepared AL&W's last rate study and is thoroughly familiar with issues addressed in this study. Our Principal-in-Charge,Tom Gould;is nationally recognized as one of the top rate experts in this type of cost-of-service study, and will be in charge of ensuring this study meets the most stringent quality standards, _ Our approach to this study will be to essentially update the assumptions and current conditions affecting AL&W's water rate stricture and revenues.We agree with AL&W. staff that the rates do not need to be restructured or.radically changed;however, the financial forecast and associated rate adjustments will need to be re-evaluated. We believe the three primary components involved.in this study are: •. A five-year financial plan that more accurately projects the budgets, capital improvement program(CIP)costs,expected revenues, and other operating conditions affecting AL&W's water system. HDR Eogineering,Inc, - 2365 Iran Point Road;Suite300 Phone(916)817-4700 Folsom,cA 95630 fax(916)817-0747 020 www.hdrinc.com t Mr. Cary Kalscheuer January 12,2009 Page 2 • Adjustments to rates.that reflect a re-evaluation of the number of accounts and consumption, as well as AL&W's.conservation concerns, to more accurately project future rates. G Rate and financial models that can test the adequacy and sufficiency of the water rate . revenues, and that AL&W staff can use to perform sensitivity analysis and then make future adjustments as needed. We look forward to discussing our proposal with you further and making any modifications you deem necessary.Should you have any questions about our proposal, all communications should be directed to Greg Clumpner at(916)817-4873 or by e-mail to greg.clumpner@hdrinc.com.Thank you again for the opportunity to submit our proposal for your consideration.. Sincerely, ^ Timothy R Fleming P.E. Gre o C.Clam'ner g rY P Senior Vice President Project Manager GCQPkAOM J I, 021 I. Company and Staff Qualifications CONTACT INFORMATION environmental and civil engineering, and engineering design services. This diversity A.b o u t HDR adds breadth to our knowledge and expertise on all projects. Formed in 1917,HDR is one of the top 500 engineering firms in the U.S., and is Principal Place of Business particularly strong in water and wastewater engineering and financial services. HDR HDR Engineering,Inc. employs over 7,500 employees in 165 offices 2365 Iron Point Road,Suite 300 nationwide. Our firm has been part of the Folsom, California, 95630-8709 California business landscape since 1960. (916) 817-4700 Phone Today, it employs more than 700 people in (916) 8174747 Fax 15 California offices, offering a full range of engineering, architectural, environmental, Project Team Locations community planning, and management consulting services to public and private The majority of the work (over 70 percent) sector clients. will be performed by team members located in HDR's Folsom office,where our project a manager and financial analyst are located. e HDR Engineering,Inc. 2365 Iron Point Road,Suite 300 rn „ Folsom, California, 95630-8709 (916) 817-4700 Phone (916)817-4747 Fax Additional support services will be provided from the following HDR offices: x v 4 HDR Engineering, Inc. (6 percent) 0 8690 Balboa Avenue, Suite 200 San Diego,California, 92123-1502 By virtue of being a multidisciplinary engineering (858) 712-8400 Phone and consulting firm,HDR has a number of (858) 712-8333 Fax individuals with highly specialized expertise in financial planning and rates. While these HDR Engineering, Inc. (20 percent) . individuals are highly specialized,they and HDR 500108th Avenue NE, Suite 1200 do not lose sight of the overall need for good Bellevue, Washington, 98004-5549 utility management and engineering practices. (425) 450-6200 Phone (425) 453-7107 Fax When necessary, HDR can draw on other expertise in the firm, such as asset management, water resource planning, 09003 022 1 . Company and Staff Qualifications a Svbconseltants specific objectives, can help clients modify 40 their financing strategies to better meet `dr All of the services required for Azusa Light changing system demands, aging 0 &Water's project will be performed in- infrastructure,or technology upgrades. 0 house, without the use of subconsultants. As shown in Figure 1-1,HDR has prepared ra HOR'S FIRM QUALIFICATIONS water utility cost of service and rate studies 40 for over 150 clients throughout the U.S. Our HDR's Overall Experience in rate study experience includes preparing Water Utility Cost of Service revenue requirements,rate structure design, Studies and Rate Designs conservation-based rates, cost allocations, multi-year financial plans,funding analysis, 4' HDR is nationally recognized for its bond feasibility studies, and Proposition 218 `b excellence in financial planning and rate requirements for water utilities.Table 1-1 1� setting for public utilities. Our illustrates the wide variety of water and understanding of financing options and rate wastewater clients in California for which designs,tailored to accomplish client- HDR has completed similar studies. City of Winters Town ofYountville Dublin San Ramon SD , City of Pleasanton East Bay MUD City of Stockton City of Santa Cruz City of San Luis Obispo 0 1 � City of Azusa ' 'iV� � jl City of Norfolk Mesa Consolidated WUp, o City of Pomona City of Imperial Beach r San Antonio System r Sweetwater Authority Water Sy � Figure 1-1. The HDR Team's Experience in Water Utility Ii Cost of Service and Rate Studies ! 1.2 09003 0236 I. Company and Staff Qualifications Table 1-1. Examples of HDR's Recent Project Experience in California , City of Santa ylater ✓ ✓ ✓ ✓ V Desalination Plant Cruz . Waterl ` Re-Design City of Folsom Sewer ✓ ✓ Water/Sewer Rates, ..;. and Conservation City of Water/ Conservation,Re-Use V .1 ✓ Rates, d Ra Pleasanton Sewer and Design City of Stockton;,_ Water ✓. ✓ ✓ ✓ ✓ Rate Structure Design City of San L"uis ;' Water/ Automatic Meter V V,Obispo , Sewer ✓ Reading(AMR) System Review City of Fresno, Water / ✓ Zonal Energy Charge Aftemalives Dublin-San.....` Water/ Ramon Services Sewer ✓ ✓ ✓ ✓ ✓ Rate Structure Design Distnct City of Galt Water/ / / ✓ Meter Implementation Sewer DESCRIPTIONS OF PAST towns water and sewer rates to meet PROJECTS AND REFERENCES multiple town objectives, including a restructuring of the water and sewer rates, The following projects are recent studies Proposition 218 rate equity requirements, similar in scope and technical nature to the increasing water conservation,and Azusa Light&Water rate study that were potentially eliminating an annual contract completed by our project manager and team for backup supplies from the North Bay within the last three Aqueduct. Rate alternatives included: years: ,z?r ® Across-the-board increases to the Water & Sewer wn„p„ current rate structures. Rate Analysis - warms 8.. ReRaieyy�yr � Restructured cost of service rates. Town of r�notrom�' Yountville, CA ® New more conservation-oriented water rates. In 2006, Mr. Clumpner completed an evaluation of the 09003 — 1-3 024 C Y 1 . Company and Staff Qualifications Ten-year financial plans were also developed for each utility,including new reserve fund policies. "NORM s➢�� "Mr. Clumpner demonstrated considerable j YA �oBU knowledge of water and sewer rates, rate structures, and overall enterprise financial' operations. He professionally and ' respectfully considered the policy issues ` raised by Council and staff. Finally, he clearly conveyed, explained, and clarified the technical recommendations of the study to` our Council... (this)will move us towards a multi- year approach to.rate adjustments and greater financial stability.? Mr. Richard Str nzi, Finance Director..' Town of Yountville 6550 Yount Street Younkllle, Catifomia,94599 (707) 944-8851 The complexity of developing rates and connection fees for 16 Lake County municipal operations demonstrate Mc Clumpner's capabilities to manage and successfully complete Multi-Agency Sewer & Watercapabilities for multiple agencies. Rates and Connection Pees - Lake County Special Services "throughout all these efforts,Mr. Clumpner District, Lakeport, CA wos professional,14 fnendly,arjd helpful He ; ., In October 2007,Mr.Clumpner began ans�yered highly technical questions i a' straight{orward manner that was easily evaluating the water and sewer rates and i un erstood by nearly everyone connection fees for the 10 water districts and communication stalls are impressrve,� six sewer districts under the control of the `r r' Atr M6rk Dellinger, county s Office of Special Districts. The Lake County Specie!Disfrids Admmistrafor, '. primary objectives of this study was to h 'i 2304MdIn`Street evaluate and update the customer classes Lakeport, i453, and rate structures, develop equitable rates (707)263-0119 and fees, and lay the ground work to fund the necessary capital improvements for the Azusa Municipal Water Rates - individualdistricts. This study, which was Azusa Light & Water, Azusa, completed in October 2008, included a CA thorough review of the county's policies and procedures, administrative practices, and mA Z U S A ' As Azusa Light financial system operations. r c H T & ,N a r€Pi' &Water is well aware,prior to Foresight's acquisition by HDR,Greg 14 04003 025 . .: ... y _ I. Company and Staff Qualifications z. r ---- - -- Clumpner evaluated Azusa Light&Water's factors, which had previously not been water rate structure to ensure rate equity, considered. compliance with Proposition 218, and the adequate funding of planned capital Reference: improvements. Mr. Clumpner developed Ms.Amy Montgomery, General Manager water rate structure alternatives that Santa Nella County Wafer District adjusted the tier breakpoints, tier rate 12931 South Highway 33 differentials, and assumed minimum Santa Nella, California, 95322 consumption levels for each customer class. (209) 826-0920 Follow-up work included evaluating Miller Brewery's water rates and agreement. Water & Sewer Rate and Capacity fees - City of ,Water & Sewer Rates and Pomona, CA Connection fees - Santa Idella County Water District, Santa rMelia, CA � � 3® ® ER �W The district was preparing to fund the In 2006, Mr. Clumpner prepared a complete construction of entirely new water and evaluation of the city's water and sewer sewer treatment plants in anticipation of rates to meet several city objectives, new subdivisions that would add more than including water conservation. Rate 7,000 new homes,plus related commercial alternatives included:across-the-board development to the district's service area increases to the current rate structures;strict within the next 10 years.Mr. Clumpner cost of service rates;and a new rate structure provided financial planning services that that better addressed the city's overall rate included developing new rate structures for objectives. Among the key tasks,Mr. both utilities, and structuring voluntary Clumpner restructured water rates, developer contributions to operating funds including revising the tier breakpoints and that bridge the gap between new facilities cost allocations to fixed and variable construction and the time when new charges.Connection fees were also updated, customers would start paying service along with the preparation of 10-year charges. financial plans, new reserve fund policies, In June of 2007,the consortium of and a rate model for each utility. developers decided to put these plans on Reference: hold due to market conditions. However,the Ms. Meg McWade, district still needed to develop a new set of Utility Business Services Manager rates to fund current operations.Therefore, City of Pomona Mr. Clumpner restructured the new rates to 505 Garey Avenue conform to existing conditions. New rates Pomona, California, 91766 included a full cost of service analysis and (909) 620-2392 incorporated wastewater effluent strength 09003 1.5 O2� I . Company and Staff Qualifications Comprehensive plater and Reference:. Sewer Rate Study & System Mr. Todd Eising, Senior Utility Engineer � Development Charge Study e City of Folsom City of Folsom, CA 50 Natomo Street Folsom, California, 95630 In 2007, HDR provided a comprehensive (916) 355-3502 water and sewer rate study and connection fee analysis.The major focus of the study gs was on the water utility,establishing Water and Sewer Rate � metered rates for a previously un-metered Structure, AMR, and Billing � residential area of the city (Ashland).At the System Enhancements - City of same time, the city did not have financial San Luis Obispo, CA rate setting policies in place and, as a result, the water rates were under-funding the In 2006,HDR renewal and replacement capital projects. �•��• conducted a _ comprehensive The study also created an improved policystudy of the ci s concerning the use of system development utility billing fees and their application against debt n system and rate service. While the city's historical approach structure for water minimizes rates in the short-term, the city is _ and sewer services, nearing build-out and expects the fees to = r and recommended decrease significantly in the future. Given enhancements to that,HDR developed a financial plan to meet the city's rate structure goals.This transition the rates to more cost-based levels. project also involved a comprehensive review of AMR systems that would support A significant element of the study was the �f public outreach element of the study as it the city's goals of customer satisfaction, and costerational efficiency, related to the implementation of the rates increased op � and the requirements under Proposition 218. recovery. HDR assisted with a number of community HDR project team members included Tom meetings and city council meetings. As a Gould. part of the study,HDR developed cost-based impact fees for the city for the water and Reference sewer utility. Mr.John Moss, UHIIHO I)inictor City of Son LuisObispo HDR project team members included Tom 879 Morro Street Gould.ou d. San Luis Obispo, California, 93401,. 0 (805) 781-7205 i 1-609003 027 i _ I. Company and Staff Qualifications am-m ..v.._._ _ r Comprehensive Water Fate Water Conservation Pricing = and Supply Capacity Charges - Rancho Murieta Community City of Stockton, CA Services District, CA r In 2008,FOR developed a financial model to HDR is currently developing conservation calculate the connection fees for a new water based rates for the city and district water source developed to meet the demands of customers. A "Rates 101"presentation was growth.The emphasis of this study was to provided to the council and board to get ensure that the various project cost elements everyone familiar with the issues associated were allocated equitably among future with rate design, particularly conservation customers versus the existing customers. rates,and to gain policy direction from the council to help form rates to meet their g ad1S. i " HDR project team members included Sunny Yoshitomi. Reference: Mr. Ed Crouse, General Manager Rancho Murieta Community Services District 15160 Jackson Road Rancho Murrieta, California, 95683 (916)354-3700 PROJECT TEAM WalefSeMce Organization Chart HDR developed a financial model to calculate the Our proposed project team,shown in Figure connection fees for a new water source. 1-2,consists of HDR personnel with specialized experience who are exceptionally HDR project team members included Tom. well-suited for the policy development, Gould and Alex Palmatier. financialannin I p g, rate design, and cost of service issues addressed in this study. Reference: Resumes are included in the appendix. Ms. Melissa Price, Project Manager Municipal UhNies Department 72500 Navy Drive Estimated Man-Hours Stockton, California, 95206 (209) 937-8782 Table 1-2 shows the estimated man-hours to be expended on the study. '09003e f 7 OZS 1 . Company and Staff Qualifications -a ------------------- A Z U S A LIGHT 8 WATER I For Qualify aJ Life Ip ! cy P Tom Gould R ----------------- Greg Clumpner Greg Clumpner Alex Palmatier Alex Palmatier Greg Clumpner SunnyYoshitomi Alex Palmatier Figure 1-2. Project Team Organization Table 1-2. Estimated Man-Hours 1 'protect jvianageinent and 2 a 2A > ` , 2 6 ri? 4 r 2 Financial Analyses, 1 30 2k 37 x ;s. 3?Cost of SeM�Analyst 6 48 , 32 4 .F7nahRep 1 1 16 2 Total without o tionah 10 w y z meetin s 70 32 34 6 ,152 9 „ Tptal (w/optldhW 10 76 32 34 6 158 meetings) 1.8 09003 029 F a Mae . Co.mpany and Staff Qualifications 6 / years as a senior economist and rate consultant / Qualifications arocl Experience of Key Team Members with an multi-national engineering firm, six 1 years as the managing principal of Foresight p The HDR project team members, their Consulting,and completion of more than 100 i qualifications,and their related experience are water and sewer rate 'studies,primarily for i provided below. California clients.He has more than 24 years of . professional experience preparing rate / Greg Clumpner - Project analyses for local water and sewer i Manager municipalities. More than 90 percent of his 9 work is rate analyses,with the remainder Mr.Greg Clumpner will covering various aspects of infrastructure provide the day-to-day planning and project financing. oversight of this study, and r will attend meetings and "I have worked with Greg for over five years 1 ' workshops, provide rate on special studies, rate studies for water and analyses and models, and sewer in Califomia and in Colorado. He is p prepare the study report. He is one of the easiest consultants to work with." a senior financial manager and rate economist Mr. Greg Baird 1 with national and international experience in Deputy Director/Chief Financial Officer . / water and sewer projects.His academic Aurora Water / background includes a Master's degree in 1 Managerial Economics from the University of Table 1-3 summarizes Mr. Clumpner's most / California at Davis.His experience include 13 recent experience. / 1 Table 1-3. Recent Water & Wastewater Rafe Experience for HDR's Project Manager 1 1 - 1 Aiusa Light& - Water ✓ / ,% ,/ Rate Design and 1 Water Proposition 218 Concerns Water/ Conservation,Re llse 1 City of Pomona ✓ Sewer . , ✓ ✓ ✓ Rates,and Rate Design s• d Water! Rate Design,Metering,and 1 Crtyof.Wmters Sewer '� �` z Water Conservation / lake County Water! ✓ ✓ ✓ Re-Design WaterlSewer 1 (Special Districts) Sewer Rate Structures,funding 1 Santa Nella Co Water/ �' ✓ ✓ �'' `: Formation of New 7,000- Water Drstnct., Sewer Unit Subdivision 9 City of Modesto Water ✓ ✓ / / d - Major Improvements and 1 Rate Design F 09003 1.9 G 1' 030 p I. Company and Staff Qualifications p Table 1-3. Recent Water & Wastewater Rate Experience for HDR's Project Manager p p IV Non-Potable Wates p City of Ripon r Water ✓ ✓ `rr ,/ + x _ Sources,Capital x r Improvement Program s r; (CIP)Funding p Town of Water/ Yountvllle: Sewer ✓ f '�` , `� Restructuring Rates City of Davis Sewer ✓ ✓ ✓ ' / / Major Wastewater Treatment Plant Upgrade .: . tF Tom Gould — Principal-in- this section of the proposal. !� Charge and QA/QC Alex Palmatier - Senior Mr. Tom Gould is a Vice Financial Analyst President and the National Technical Director of Finance Mr. Alex Palmatier is an and Rates at HDR.He is experienced financial analyst (p nationally recognized for his w with more than 10 years of expertise in utility financial financial panning experience planning and rate setting.He for water and wastewater is the current instructor for the American facilities. His diverse 410 Water Works Association (AWWA)financial experience includes extensive M management seminar. In addition, he is a management and operational 6 contributing author to the AWWA M1 Manual, assessments in customer service,billing and f* Principles of Water Rates,Fees and Charges, and collection, accounting,business unit the M34 Manual, Water Rate Structures and development, and project/transition Pricing. management. His management consulting 6 experience includes cost of service analysis, 6 Mr. Gould has cost-of-capital determination,and financial participated in over 100 modeling.He is well suited for the rate and cost of service studies, financial analysis tasks included in this study. including those for the City of San Luis He has conducted cost of service studies for Qj Obispo, City of the City of Big Bear Lake,City of Stockton, Folsom, and City of an Victor Valley Wastewater Reclamation, and Stockton projects Y:r• „ City of San Diego. presented earlier in t't 0 09003 031 2. Work Pian PURPOSE OF THE STUDY Rate and financial models that can test the revenue sufficiency of the water Although Azusa Light&Water (AI.&W) rates and that AL&W staff can use to recently updated their water rates, several perform sensitivity analysis, making factors have reduced water-related future adjustments as needed. revenues and prompted the need for additional rate adjustments: tG DR's project manager reg Clumpner authored ® Drought conditions, combined withAL& W's 2007 cost of AL&W's conservation efforts,havewr service study, which reduced consumption. needs to be updated to reflect current IM The economic downturn has constrictedconditions affecting the the housing market and also affectedwater rate structure. water use.® The adjustment to the master-meterThe study will billing practices was modified, alsorequire a consultant reducing revenues. tat astop-notch credentials in financial planning and rate analysis, and This rate study is essentially an update of who also understands AL&W's utility the assumptions and current conditions systems. Communication between the affecting AL&W's water rate structure. We consultant and AL&W staff regarding the agree with AL&W staff that the rates do not staff's priorities and study objectives will be need to be restructured or radically an important part of this study,along with a 1 changed.But the financial forecast and good understanding of AL&W's policies. 1 associated rate adjustments do need to be 1 re-evaluated. 4800- 1 The three primary components involved in 1 this study are: `Qj� �0.1t/+. . 1 ® A five-year financial plan that more y° F 1 accurately projects the budgets, CIP Study R 1 costs,expected revenues,and other ? GoalsAll operating conditions affecting the 's a 1 utility's water system. 1 9 Adjustments to rates that reflect a re- evaluation of the number of accounts, 1 consumption, and AL&W's a9eI"ent conservation concerns to more ? accurately project future rates. HDR's Goal.Effective communication between 1 ALM staff, consultants,and ultimately the project stakeholders, e p 09003 2-1 032 2. Work Plan y STUDY APPROACH Subtask 1.1 - Project Management � and QA/QC Our overall approach to this study, and our ability to meet AL&W's two-month study This subtask includes the management schedule, are enhanced by our recent work activities required to ensure the project is with AL&W staff on their last water rate completed on time and within budget. HDR study.We already have the rate model and will prepare invoices and progress reports understand the changes that have occurred on a monthly basis. The monthly progress since that study was completed. reports will summarize budget and schedule status in measurable terms.Other 49 Overall, we will hold a kick-off meeting to activities include the scheduling of staff and review those changes, clarify the issues coordinating the quality assurance effort. needing to be addressed, and collect the updated customer account, water Regarding the QA/QC, we would note the consumption,and financial data needed to significance of having Tom Gould perform re-evaluate the rates and financial this role. Mr.Gould will review the cost of projections. Following this kick-off meeting; service analysis, cost allocations,and rate we will begin updating the rate model and adjustments to ensure they meet not only discussing the modifications with AL&W Proposition 218 and cost of service staff. principles,but also best meet AL&W's Our intent is to maintain close objectives for this study. � communications with staff to ensure we are Subtask 1.2 — Meetings (Optional) addressing all the issues of concern and are Q developing new rate and financial models Although these meetings are optional, and that meet your objectives and enhance would be used as determined by AL&W cm future management of the rates and staff, we have proposed an approach to 6 financial planning efforts. meetings that we believe will facilitate a 0 smooth study process, sufficient AL&W Task 1 - Project Management, review, and efficient completion of the ®i Meetings, and QA/QC study. 0 Kick-off Meeting-The purpose of the initial 41 Tosk:Obtechve A lack-off meeting follovred project meeting, attended by our project 0 by regular contd,d with City staff will.ensure manager,is to make sure that the HDR team we hove a mutupl understanding of the I. ` and AL&W's staff are "on the same page." objectives, direction, and,outcoine of the study. This meeting allows both parties to discuss the overall goals and objectives for this study, as well as data concerns and specific difficulties addressed in the study. 41 ,ecorad Meeting;This meeting, attended by Q our project manager,will be used to review 2-2 09003 039 2. Work Plan the initial results of the study, particularly develop a model for forecasting the water the financial planning and rate adjustments. revenues, including the projected CII'costs, We will forward a meeting agenda and the source of supply increases, updated initial results for staff's review. depreciation costs, repair and replacement reserves, and other expenditures 3 d1 I, ir11 lti i2 ciifl P,�3 i'nAi?Sit,j ess on;.We will explain the financial and �,�-lye already hake the rote oriel and of rate modeling process as they are � un�erstan�fhe changes thaf .averoccurred s', developed during the study.However, this $�sitl`ce t`hQt�s,�ud�wps�compjeted''?k,tr" � ; optional meeting will provide up to four hours of detailed training to AL&W staff to This task will include a detailed breakdown ensure they know how to use the financial of trial balance items,various revenues, and and rate models.This meeting could be fees, and the development of the five-year attended by our project manager and our forecast on this basis. senior financial analyst,Alex Palmatier. ' We also propose to review the sensitivity of AIAVY b SU Orf fror IQs!'. i p� the financial projections by developing a table that provides both the baseline and the Have key AL&W staff coordinate times plus and minus a sensitivity factor(e.g., 15 and dates for, and ensure the attendance percent) that can be applied to variables of,meetings. such as annual water consumption, inflation, capital costs, and similar financial Task 2 - Financial Analysis components affecting the projections.These variables will be evaluated to determine t Task Objective: This task builds a financial whether the sensitivity of the rate increases model that projects revenues, expenditures, to changes in these variables.We will t and net revenue requirements revenue to.be 9. (revenue develop a rational and reasonable approach t recovered from water and sewer rates). to the forecasts by reviewing these results with AL&W staff. 1 1 This task lays the groundwork for the The primary work product from this financial projections and development of subtask will be a financial forecasting model 1' revenue requirements, and is reflected in . that will be used to test the appropriateness the rate analysis. of current and scheduled water rates. 9 Subtask 2.1 - Revenue and Subtask 2.2 - Develop Net Revenue Expenditure Forecasting Model Requirements The first aspect of this task will be to collect Using the forecasting model from Subtask b and review the detailed budget information 2.1,we will develop the net revenue for the water and sewer utilities.Based on requirements, which are total revenue discussions with AL&W staff, we will requirements less non-rate revenues. F; 09003 2-3 034 r 2. Work Plan z However,we will also consider the use of Subtask 3.1 - Evaluate Water reserves in determining these net revenue Consumption and Billing Data requirements. Accurate data on the consumption and The primary purpose of this subtask will be number of customers within each tier to develop the revenue requirements to be allows for accurate adjustments to fixed V used to determine recommended rates. The meter service charges and commodity rates. ap revenue requirement analysis will be part of Additionally, this kind of analysis is the financial forecasting model,but will important for revenue stability because it identify the revenue to be collected from improves accuracy when predicting the water rates. total amount of rate revenue generated by tiered,volumetric-based rates. &? E�pacred ALa'Jv' Support for Task 2: � We will re-evaluate AL&W's water a Provide the financial data requested. consumption data to develop a realistic and ®0 ® Review initial alternatives and provide more conservative basis for the cost of i? comments and direction as needed. service analysis ("conservative" means projections that consider current economic Task 3 - dost of Service conditions and trends of reductions in � Analysis water use).This includes: 0 Typical consumption by meter size. Tosk Obiechve.;,Develop.a cost-".1- ice ® The number of meters and accounts b analysis that updates critical billing and y water system data, meets Proposition 218 consumption level (i.e., the distribution mandates,and`provides,venficafiorS of the curve of consumption identifying the revenue proiections based on proposed number of residential customers by .rates.,:! consumption level). This task will provide the technical cost of We will use various graphs and tables to service analysis of water rates, including help illustrate the results of this analysis to cost allocations and proposed changes to AL&W staff,Council members, and the projected revenues and rates by customer public,similar to Figure 2-1. 0 class. 8 Subtask 3.2 - Evaluate Current Water 0 The rate model developed will consist of Rates Microsoft Excel-based worksheets and will provide a series of figures comparing: (1) AL&W's current water rate structure relies the annual revenue as a total and by on meter sizes. Adjustments to the projected V customer class; and (2) the customer bills future rates will, to a large extent, reflect the under current and projected rates.The number of accounts/meters and the 0 following subtasks provide details of the consumption data developed in Subtask 3.1. 40 cost of service analysis. � 2-4 09003 �35 ti 2. Work Plan Figure 2-1. Examples of Water Subtask 3.3 - Cost of Consumption Data Analysis Service Analysis Monthly Consumption by Class The primary purpose of City of Pomona this analysis will be to 700,000 follow industry standards 600,000 Single Family and AWWA Tota! 500,000 methodologies and to Monthly 400,00° ensure Proposition 218 Use(hct) 300,000 Muld.Family requirements are met. 200.000n t However,we believe the 100,000: Commercial current rate structure is 0 _.._. ... sufficient with the Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec exception of revenue- related adjustments to the 2006 Residential Consumption, Number of Customers, actual meter service and Seasonal Averages charges and commodity City of Aurora, CO 6,000 rates. Annual�?varsc7o;"�?nr.:L•Iy 5,000- R, Residen;Eai t=.:.,a,b,7 5+i•;a!lorss As a part of the cost of I 1 t"' !nt service update to the No.of 4°0°_ - winter o_arear?.rera.,e rates, we will provide Customers n Usage=5,150 g.r!ons fe 3,000_ hcfs detailed tables showing }3 Summer QuWer 2,000- Avaranr. Usa;le=-15,430- the allocations to fj : °ca os h°.6 hcrl functional categories (e.g., t.000'it,�, t �®®'®�;e' customer costs,fixed 0 "' �' costs,distribution-related, 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 Average Monthly Use etc.). (1,000 gallonsrmonth) The cost of service To focus on revenue sufficiency oand cost f analysis will then y r evaluate fixed charges, which largely reflect service principles, some adjustments to the capacity, and commodity charges,which current rates to be evaluated include: address water conservation objectives. R Cost allocations between fixed meter M Fixed Service Charges: We will rely on charges and commodity charges. AWWA's methodology of using M Adjustments to meter service charges equivalent meters (hydraulic capacity) and commodity rates. in setting the meter service charges. M Commodity Charges:Include all costs not allocated to fixed service charges. Tier rates will be set so as to meet the 09003 2-5 036 b 2. Work Plan Iti. p revenue required for each customer The updated rates will then be compared to p class, thereby fulfilling the cost of current rates to determine the impacts on service requirements of Proposition 218. customers at various consumption levels. An example of this comparison is shown in fg The commodity rates will consider: Figure 2-2. p ® Tier Break Points:Based on the Subtaskfg updated consumption data,we will re- Considerations ati - Other Rate evaluate whether any adjustments to the Considerations W tier breakpoints are needed. AL&W has experienced the impacts that occur in times of water shortages,such as M IN Tier Rates: Likewise,we will re- � evaluate adjustments to the tier rates revenue shortfalls;when supplies are based on the updated consumption data reduced and consumption drops, AL&W b and number of accounts. cannot proportionally reduce operating costs. Hence, the need for a plan that We will also prepare, as a part of this rate ensures revenue stability during shortage analysis and rate model,a revenue periods. adequacy test within the model to demonstrate that the forecasted sales data, E rates, and other data will indeed produce g sufficient revenues. 6 6 Monthly Commodity Charges for 518"-314" Meters by Consumption Level City of Azusa ti ---._.....__._.._.._.._._-.-------------- _�o ... $165 } p Current 2-rierRates wlRafe Increases New Rates are Higher Cq $150 ` ® Recommended 2•TierRates than Previous $135 wMate Increases $120 1 $105 Average Month r m $/Month $90 New Rates are Consumption Lower than =27.7 ccf m N w $75 .� Previoets � `° c $60 $45 $30 o ri o ri w f $15 $0 10 ccf 15 ccf 20 ccf 30 ccf 40 ccf 50 ccf 60 ccf 70 ccf 100 ccf f Figure 2-2. Example of Rate Comparisons t 1 037 2-6 09003 4 r r 2. Work Plan We propose using two primary means of Task 4 _ Final Reports and meeting revenue sufficiency during supply Presentation shortages: M Establishing an Emergency Reserve: Task Objective: To communicate as clearly 1 as possible the changes in the water ! This involves establishing a reserve consumption and account data affecting fund that will cover temporary revenue rates, how financial and rate models were L shortfalls during the initial period of developed, and the comparisons of supply reductions or shortages. This projected rates. reserve will need to be included in the revenue requirements. Subtask 4.1 - Prepare Study Reports ® Developing an Emergency Rate and Presentation Structure:AL&W will need to increase We will provide a study report,including the fixed and/or variable charges to two draft reports for AL&W's review and a provide the revenue needed during final report, that address the following reduced water sales. This involves topics: ¢ identifying: (1) the level of supply ! shortage; and(2)the rates needed to ® Executive Summary(an overview of 4 continue producing the necessary rate two pages or less). revenue. ® Changes in accounts and consumption Used together, the reserve fund and the data, as well as financial projections that @ emergency rate structure can be very have affected rate revenue. E effective in meeting AL&W's revenue ® Proposed water rates by meter size as requirements during supply shortages with rates that still comply with Proposition 218 compared to current rates. and cost of service principles. ® Figures similar to those shown I In addition,HDR will consider the fiscal previously in this proposal illustrating bills under current and recommended impacts of compliance with bond debt rates and various consumption levels. I coverage requirements when formulating 1 cost and revenue forecasts. We will emphasize the need for a clear, concise, and understandable report using Ira=:clad F.!-&Y%i Staff Support.for Task. tables, graphs, and charts as appropriate. ! After reviewing the first and second draft t ® Provide the data requested. reports with AL&W staff and receiving their i 12 Review preliminary results and confer comments, we will prepare the final report 1. with the HDR team as needed. incorporating those comments. b Based on the final report,we will prepare ! the Powerpoint presentation.We will work ! F ( 09003 2-7 038 2. Work Plan with staff to determine the appropriate 0 Cell comments would be used to number and types of slides to be included indicate the sources of data and in this presentation. explanations relevant to the updating We will plan to provide AL&W with 10 process. copies of the final report, including a Sen i"vity Analysis: reproducible original and the electronic copies (Microsoft Word and Excel),and an We will also make special note of variables electronic file of the Powerpoint that can be modified when evaluating the V. presentation. sensitivity of the projected rates to changes 3, mgmg-g7MMin those variables. For example, total net Yojur dro tfGeorts were�alsf�g revenue requirements, the number of guo, wand requiIrrs mii a.changes o accounts, annual water consumption, Hurt # inflation rates,and CIF costs are key . a = a s, quer variables that AL&W staff may want to use t' ista whe © hl as r to test the sensitivity of the models. Fapeciad Al&W S+.+ppoi for lesk ?: � Subtask 4.2 - Prepare Financial and ® Review preliminary results and confer Rate Model VM with the HDR team as needed. The basic approach to documenting the ® Review first and second draft reports, financial and rate models is to make the and provide comments to HDR. model and calculations as"transparent' as Qt possible, in contrast to a 'black-box" approach where it's not apparent how calculations are made. The financial and rate models will include: ® An index of the tables(table names and functions). ® Explanations of how each table in the model works. 9 ® Color-coding and highlighting those cells that need updating, such as budget data, number of accounts, water consumption, in contrast to other, static @ parts of the model,like calculations and @ rate results. @ @ 8 @ 2-8 09003 @ 039 � 9 Y Y 3. Data Request Y Y Y Table 3-1 shows a summary of the data requested from AL&W and the options if data is not available. Y Y Y Table 3-1. Summary of Data Request Y Y Y Most Recent 12 Months of Monthly/Bi-Monthly Revenues (by 1 Customer Class)for Azusa City,Azusa Valley, and the Replacement Historical Records , Y Water Cost Adjustment Factor(RWCAF) 2 Schedule of Long-Term Debt Service Payments Staff Estimates 3 Water Enterprise Fund Budgets/Revenue Requirements (Actual, Historical Records Budgeted, and Projected) Yr Y 4 Miller Brewery Revenues(Actual, Budgeted, and Projected) Historical Records Y 5 Year-End Water Fund Cash Reserves (Fiscal Year 07-08) and Historical Records Beginning-Year Cash Balance (Fiscal Year 08-09) : cis ri Y Assumptions for Projected Inflation Adjustments(Salaries, Franchise previous Rate Study Y 6 Fees, Operating Expenses, General and Admin.,etc.) s Y 7 ALBW Financial Policies (e.g.,target coverage ratios and year-end Pry nous Rate.Study Y fund balances) 1 Y 8 Number of Accounts and Unitsby Meter Srze(Previous, Current " ' ' Prolectfons Based on and Projected} Histori Records 1 6 9 Most Recent 12 Months.of Monthly/BI-Monthly Water Consumption Historical Records (by customer class)for Azusa City,Azusa Valley, and the RWCAFCC, 10 Most Recent 12 Months of Monthly Water Consumption(by meter Historical Records size) A 9 1 !, 09003 3.1 040 4. Scope Exclusions/Addenda p A. w:...r✓vim.....__ _...._ .uu.. HDR has addressed the requirements of the request for proposal (RFP)in scope of work detailed in Section 2 of this proposal.The scope of work included in Section 2 also contains additional.and optional tasks that were not identified in the RFP scope of work.These include: ® Subtask 1.1 -Project Management and QA/QC. i ® Subtask 3.1 —Evaluate Water Consumption and Billing Data. ® Subtask 3.4—Other Rate Considerations (establishing emergency reserves and ` rate structure). E f t l 1 1 1 1 1 1 ! 1 ! 1 ! ) ! ! 9 9 ! 09003 4-1 04 I f S. Deliverables Table 5-1 summarizes the deliverables anticipated for each task. i i Table 5-1. Deliverables 1 Project Management ® ::.Monthly progress reports'and invoices. Meetings (Optional) i and QA/QC ® Meeting agenda pnor,.to meetings with AL&W staff. ® Meeting minutes following the me1.etings:with ALRW staff 2 Financial Analysis ® Summary of net revenue requirements, as well as detailed ba1.ckup budget,:pro'ections I 3 Cost of Service ® ;Sumary of customer accounts and water consumption data m 1 Analysis ra 'proposed adjustments to current meter seance charges and commodity rates Projected revenue requirements:by customer class and worksheets . I k-.:`,demonstratmgrevenue sufflclericy I - ® Projected-customer bills by customer class Land consumption level. 4 Final Reports and ® ;Four bound copies and one electronic copy(Microsoft Word and I Presentation :Excel)of the first draft report,which will inGude complete executive summary background methodology analysis,findings and recommendations an8 proposed rate schedule Ir® `four bound copies and one electronic copy(Microsoft.Word and 1 ?Excel)of the second.draft report:and proposed rate schedule after ! &Wm "incorporation of AL 's coments on the first draft report r.1 'N 'Fourbound copies and one electrornc copy(Microsoft Word and;: ;Excel)of the final report and proposed rate schedule; after 1 ,;dncorpora{Ion of AL&W's comments on the second draft report ! � PbwerPoliit presentation summanzmg theHfinal report,'in an electronic: 1 fle{Ahcrosoft PowerPant) ' 1 1 1 I ! P ! ! 09003 — 5-1 042 �. � Weeks from Notice to Proceed vi Task 1`_' Frotecf Management,Q/UQC andJlAeetmgsMlorksttops r s s r ,.- +. ,Task2 FinanciatAnalysis 3't F�'ds_ �p�05�-Of3`BMCC/S[Ta�j(SIS y. �F r•a$ r U-` xlz+ ,r t o✓ -sr -t� tix r w- f �-t�' me • • • C . . ®®®®®� ���. «a'.� a1 �s�is�ine;C.zrko�..Y`,sSn:r.a.:w�.,cwc--�.�,�v..z-+�.�.w,aaw�tse. ..+u�. ��`-,='^..cF�kx�-•_� �• •. - • 'a•. �5���® 'ams` �ar� ,, ta)1 e tal , t'., Task Oescrlpbon-', gA(QC Mai�agerl Analyst � Analyst kClencal�Hours"Wbor_($)rEzpense5(§)ICosf($J, tFask`!�6ma[,naFAnelysrs's 3 .;- ' _ .K,,,. .? � a--�.. ,r . 4� �Yy�r,-"� }s ®'tea WIN=; � .1 --"X67� I } 8. Fee Schedule/Hourly Rates I 1 HDR ENGINEERING, INC. STANDARD RATE SCHEDULE January to December 2009 City of Manhattan Beach Water and Sewer Rate Analysis 1 1 Principal $254 Project Manager 233 Senior Financial Analyst 143 Financial Analyst 127 Senior Project Controller 110 Project Coordinator 72 Technical Editor 70 Clerical 65 Please Note:Rates include current overhead rate plus prord and are adjusted annually. I 1 EXPENSES i 1 In-House Expenses Technology Charge per Direct Labor Hour $3.70 I Vehicle Mileage(per mile) $0.55 1 Color Copy(per copy) $0.75 to$1.50 Photocopies(per copy) $0.10 to$0.20 I Bond Plotting-Black&White (per square foot) $0.135 Bond Plotting-Color(per square foot) $0.50 1. Vellum-Black&White(per square foot) $0.50 Mylar-Black&White (per square foot) $0.90 1 Please Note:Technology charges include computer, CADD, network,software, and other related technology 1 services. Expenses are charged with a 10 percent markup. 1 1 1 1 1 1 1 I i 1 1 09003 8.1 045 I 9. Other Committments I 1 1 All members of our team have adequate lower-level staff and there will be no time available to complete your project substitution of team members.Table 9-1 1 successfully within the time frame indicated summarizes the projected staff 1 in the schedule, and are fully committed to commitments to other clients over the study 1 this project. Work will not be delegated to period. I 1 1 Table 9=1. Project Team Availability and Commitments 1 1 ' Greg Clumpne� 301% to 40% ® City of Williams Prosect Manager 11-�1- :`,':City of.Riverbank ® ;,City of�fayward >;Humboldt.CommurntvServices.Distnct 1 ® ;City of Shaffer 1 ' Tom Gould 5%to 10% ® !Saint John Water Utility i PnnclpaJ Charge and ® `City of Spokane QA/QC of Milton ID :':City of Fresno l ® :City of Bentonville 14 'Cityrof Mount Vernon' f ® ;Southside)Nater anH Sewer District Y; ® Soos Creek Waler a'nd Sewer Distract r F l Alex PalmatieF 30%to 40% W,City of San Diego Senior Financial Analyst r � ® ;Moulton Niguel Water DFstnct 4 ,. ' � � ':Clark County Wastewater Reclarnat�on District .. t e ®::City of San Clemente. ! m ��South Otahge County WastewaterAuthorijy ! SunnyYos'fi 40%to 50% ® .'City of Sutter Creek Financial Ana yst ®'City of Woodland t IR Sacramento Regional County Sarntation District � I I l f ` 09003 9-1 046 Greg C. Clumpner Experience Mr. Clumpner's 25-year professional career has focused on financial and economic analyses, and management consulting assignments for municipal water,wastewater, and solid waste agencies. His increasing levels of responsibility cover technical and project management aspects of operating and capital improvement projects for both domestic and international Project Rote projects. He is an expert in developing financial models and proforma Project Manager analyses to evaluate the consequences of various infrastructure development alternatives. Meetings and Reports to Cost-of-Service Rate Studies:His cost-of-service f experience includes Rate Analysis and Model preparing revenue requirements,rate structure design, cost-of-service Education studies,multi-year financial plans, conservation-oriented water rates, funding analysis, and Proposition 218 requirements for water,sewer, M.S.,Agricultural/ and solid waste utilities. He has prepared more than 100 cost-of- Managerial Economics, service water and sewer rate studies throughout California and the U.S. University of California, Davis, 1983 Multi-year financial plans address annual cashflows,reserve levels, inter-fund transfers, and rate adjustments. In addition,he has evaluated B.S., Environmental Planning new and existing development impact fees for water,wastewater,and and Management, University other municipal improvements for the more than 60 municipal clients. of California, Davis, 1977 - ® Utility System Valuations:His utility system valuations experience Professional includes assessment of the field condition and likely market value of Endeavors private water,storm drainage,and electric transmission/distribution HDR Engineering, Inc., systems. 2008 to Present a Management Consulting FaSlrategicPlanning.His management Foresight Consulting Services, consulting and strategic planning experience includes operational and 2003 to 2008 financial analyses related to system acquisitions, municipal versus Hilton Farnkopf& Hobson, private operations, and funding strategies for municipal agencies. LLC, 1998 to 2003 ® Project Financin&Bond Feasn'bility Studies:His project financing/bond Resource Management InO, feasibility study experience includes preparing bond feasibility reports Inc., 1997 to 1998 resulting in the issuance of more than$450 million in revenue bonds CH2M HILL, 1984 to 1997 to finance the acquisition or construction of municipal facilities. ® Waste Management Economics:His waste management economics experience includes evaluating and comparing the operational advantages, capital and operations and maintenance (O&M) costs, rate impacts, and financing issues for waste management facilities and system alternatives such as transfer station/long haul systems and landfill expansions. Representative project experience includes: WATER AND SEWER SYSTEMS Valuation of Production Wells-Arcade Water District;Sacramento, California Evaluated the production capacity and field condition of wells and distribution network. Azusa Municipal Water Rates-City of Azusa,California Azusa Light& Water needed to evaluate its water rate structure to ensure rate equity, compliance with Proposition 218 requirements, and adequate funding of its planned capital improvements. Water conservation and revenue stability were additional concerns for the city. Developed several water rate i 047 Greg C. Ciumpner structure alternatives that adjusted the tier breakpoints, tier rate differentials, and assume minimum consumption for residential customers. The city serves over 20,000 residents and businesses, consuming approximately 10 billion gallons of water per year. Professional Sewer Capacity Fee Study-City of Corning, California.Conducted a rate Affiliations study and prepared a financial plan for the city's sewer system (population y, American Water Works 6,700). Association (AWWA), Sewer Rate Analysis&Consumption-Based Sewer Rates-City of Davis, Y� Member California.Evaluated the city' s sewer rates primarily to develop a financial strategy to fund $165 million of improvements to the city's wastewater Planning Commission, treatment plant. Restructured the customer classes and developed new Chairman, City of Davis cost-of-service rates. As a separate follow-on task, developed winter water Budget & Finance consumption-based residential rates, which have now been adopted and Commission, Planning implemented. Commission Liaison, City of Davis Water and Sewer Rate Study-City of Winters,California.Evaluated the Former Board Member, city's revenue requirements,rate structure and customer classes,water American Youth Soccer consumption data, and billing records to provide the basis for developing Association (AYSO), Davis rate alternatives that fully fund operating and capital costs and provide a (Region 218) high degree of revenue stability. Developed revenue requirements and 10- year financial plans, Recommended rate structures that were compatible Sacramento Economics with the city's billing system, are easy to understand, and easy to Roundtable (Past President) implement, and conducted a cost-of-service rate analysis. Training Valuation of Privately Owned Utility Systems-Elk Grove Water Works and ¢ AW WA Cost-of-Service Elk Grove Community Services District,Elk Grove, California. Conducted a Analysis,Decision Analysis, valuation of water utility for possible acquisition by the Elk Grove Project Management, Community Services District (now called the City of Elk Grove). Estimated tya Technical Writing. the fair market value of the Elk Grove Water Works and assisted with Publications acquisition negotiations of this water utility. Four basic approaches were evaluated, including rate.base,book value,and replacement cost less 'The Drought's Here...Now depreciation under two depreciation methods.This study included detailed What?A Look at Water investigation of allowable asset valuations under California Public Utility Budgets and Water Y Consumption Data in Commission rules. Developer contributions were evaluated from a public Designing Water utility perspective. Negotiation strategies and assistance were also Conservation Rate provided. Structures," California- Sewer CapacityFee Study-City of Imperial Beach, California.Conducted a Nevada Section AW WA, Accepted for Presentation at rate study and prepared a financial plan for the city's sewer system. 4' the 2008 Water Quality & Multi Agency Sewer&Water Rides and Connection Fees-Lake County Regulatory Conference, Special Districts,Lakeport, t;alifornhL Evaluated the water and sewer rates Ontario, CA, October 2008. and connection fees for the 10 water districts and six sewer districts.The "Conservation Rates and the primary objectives of this study was to evaluate and update the customer New Age of Supply Shortages classes and rate structures, develop equitable rates and fees, and lay the - Using Water Conservation ground work for funding necessary capital improvements for the individual Data to Design an Effective districts.This study included a thorough review of the county's policies and Water-Conservation Rate procedures, administrative practices, and system operations. �t Structure," Califomia-Nevada Section AW WA,Source Water Rate Study and Financial Plan-City of Lakeport, California �a Volume 22, Number 1, Spring Conducted a rate study and prepared a financial plan for the city's water 2008, system,which includes four wells, a surface water treatment facility, and distribution system to the meter. 048 i Greg Ce Clurnpner Evaluation of Water Main Replacement Program-City of Merced, 1 California.Conducted an engineering.analyses and field inspection to assess the condition of water mains and potential changes needed in funding the water main replacement program. � Publications (continued) Water Rate and Capacity Fee Analysis-City of Modesto, California The city 1 "Conservation Rates and the did not prepare a full cost-of-service rate analysis of its water rates in more New Age of Supply Shortages than 10 years and needed to fund over$150 million from rates within the i -Using Water Conservation next five to 10 years.This required significant rate increases and a well- Water-Conservation Rate Data to Design ti Effective constructed financial plan that combined annual rate increases,new Structure,"Technical Paper connection fees, and issuance of new revenue bonds. Prepared a cost-of- prepare for AWWA service rate model,which included projecting revenue requirements, 1 Publication, November,2007. thoroughly analyzing rate structure alternatives, reviewing and updating "Conservation and the rate policies,analyzing water consumption by customer class, and Consumption Conundrum: evaluating cost allocation methodologies. Prepared extensive analyses of 1 The Relationship Between customer water use characteristics for flat and metered water utility 1 Water Consumption Patterns customers. By combining three zones, each with flat and metered and Effective Multi-7Yered customers,into a single zone and a uniform rate structure, a new water 1 Water Rates" Presentation at rate structure was developed. Once the water rate analysis,report, and the AWWA Fall Conference, Proposition 218 process were completed,the city successfully implemented Sacramento, California, . the new water rates and connection fees.The City operates and maintains October 25, 2007(Co- over 70,000 water connections, 927 miles of water lines, 129 water wells, authored with Greg Baird, seven water storage tanks, one surface water treatment facility, and one CFO/Assistant General terminal storage area. 1 Manager,Aurora Water, 1 Aurora, CO). Water&Sewer Rate Study-City of Morgan MMf, California.Conducted a "Compliance Strategies for rate study and prepared a financial plan for the city's water and sewer ( Meeting AB 939 Goals," systems (population 39,218). 1 Presentation to the California Water&Sewer Rate Study-City of Mount Shasta,California.Conducted a Debt Advisory Commission, rate study and prepared a financial plan for the city's water and sewer 1 Long Beach, California, 1995. systems. 1 "Estimated Property Value Water and Sewer Rate Studies-City of Paso Robles, California.The city Impacts Related to needed to start planning for major system improvements,including new Proposed HELLO Generation eration Project."Testimony prepared water supply alternatives, additional reservoir and above-ground storage � for the Hawaiian Electric tanks, and major sewer treatment upgrades. Developed the rate analysis _ 1 Company (HELCO), Hawaii, and prepared the connection fee analysis.The city implemented all 1 1994. recommendations, and now operates and maintains 14 wells,five booster "The Economics of Mandated stations, four reservoirs that hold a total of 12,150,000 gallons (two 4 Source Reduction and million-gallon [MG] tanks, one 4 MG reservoir,and a 150,000-gallon tank 1 Recycling Programs in on Merryhill), and 148 miles of water pipe.The water system serves nearly California,"Annual 8,000 residential, over 130 commercial, 700 irrigation, and approximately 9 Conference, National Solid 370 construction meter customers. Waste Managers Association, Water Fa Sewer Rate and Capacity Fees-City of Pomona, California. Toronto, CN, 1994. Prepared a complete evaluation of the city's water and sewer rates to meet several city objectives,including water conservation.Rate alternatives included: (1) across-the-board increases to the current rate structures; (2_ strict cost-of-service rates; and (2) a new rate structure that better addresses the city's overall rate objectives. Restructured water rates, including revising the tier breakpoints and cost allocations to fixed and variable charges. Connection fees were also updated, along with preparation of 10-year financial plans, new reserve fund policies,and a rate model for each utility. 1 MR 049 1 Greg C. CBumpner W Comprehensive Water Rate Study-City of Ripon, California.The city needed to re-evaluate its water rate structure to ensure equity among its customers, and ensure its planned capital improvements would be ' adequately funded. Conducted a study that addressed pricing for the city s non-potable water supply and rate alternatives that included more conservation-oriented rates for residential and commercial customers. t33 Sewer Rate Study-City of Riverbank, California.Conducted a rate study � and prepared a financial plan for the city's sewer systems (population 21,750). Wastewater Disposal Alternatives Net Economic Benefits Analysis—City of Santa Rosa, California.As a part of an incremental recycled water �1 program, evaluated the net present value of cost and benefits for more than {� a dozen water reclamation,reuse, and disposal alternatives,for the Santa Rosa Regional Wastewater Treatment Facility.This covered a planning period of 40 years and provided financial and economic results used to screen and further develop these alternatives. Water&Sewer Rates and Connection Fees-Santa Nelta County Water Distric4 Santa Nella, California.The district was planning on funding construction of new water and sewer treatment plants in anticipation of new subdivisions that would add more than 7,000 new homes, plus related commercial development to the district's service area within the next 10 years. Developed new rate structures for both utilities that included voluntary developer contributions to operating funds to bridge the gap between new facilities construction and when new customers would start paying service charges.Also restructured the new rates to fund current operations after the consortium of developers decided to put the plans for new water and sewer treatment plants on hold due to market condition. These new rates included full cost-of-service analysis and incorporated M9 wastewater effluent strength factors, which had previously not been considered. Water Rate Study-Valley of the Moon Water District,El Verano,California Conducted a rate study and prepared a financial plan for the district's 4 water system (population 23,000, 6,832 service connections). i Water System Feasibility and Capacity Fee Study-City of Visalia,California h Conducted a financial analysis of developing a city-run water system in addition to existing California Water Service operations. Developed fS projected system costs and connection fees for the new municipal operations. Water and Sewer Rate Study-City of Williams, California Conducted a cost-of-service rate study, prepared a financial plan, and re-structured the city's water and sewer rate schedules (population 4,800). Also assisted with g developing a revenue program, as part of the Clean Water Service State Revolving Fund (SRF) loan application process. M Water&Sewer Rate Analysis-Town of Yountville,California Completed an evaluation of the town's water and sewer rates to meet multiple town 9 objectives,including a restructuring of the water and sewer rates, Proposition 218 rate equity requirements,increasing water conservation, and potentially eliminating an annual contract for backup supplies from e the North Bay Aqueduct. Rate alternatives included: (1) across-the-board d 050 ' 6 } Greg C. Clumpner increases to the current rate structures; (2)restructured cost-of-service rates; and (3) new more conservation-oriented water rates.Ten-year financial plans were also developed for each utility,including new reserve D fund policies. Water Rate Structure Review/RateAnalysis-Aurora Water,Aurora, Colorado.Aurora Water was experiencing significant problems with their 1 water rates and billing system due to their recent adoption of a water budget-based rate structure. Reviewed and evaluated specific rate structure and billing problems, and recommended changes. Primary concerns were cost-of-service principles and rate structure design.As a result of the analysis, the city decided to re-evaluate rates and revert to a more traditional tiered water rate design. Pricing of Water and Reclaimed Water-Cyrus.Prepared a financial evaluation of the costs of several new water and reclaimed water alternatives,including the costs of transportation and distribution facilities, operations and maintenance (O&M),financing costs, and the resulting ( costs of water to consumers. Pricing of potable and non-potable water for agricultural and M&I customers was an important aspect of this study.No in-country assignments were required in this project. ' STORM DRAINAGE SYSTEMS Storm Drainage Funding Alternatives—City of Alameda,California- Developed multi-year financial plans to evaluate potential funding sources for operations and maintenance (O&M) and capital costs of storm drainage programs. Storm Drainage Funding Alternatives—City of Belmont, California Developed multi-year financial plans to evaluate potential funding sources for operations and maintenance (O&M) and capital costs of storm a drainage programs. ' Storm Drainage Funding Alternatives—City of Petaluma,California. Developed'multi-year financial plans to evaluate potential funding sources for operations and maintenance (O&M) and capital costs of storm drainage programs. Storm Drainage Funding Alternatives—City of Redwood City,California. Developed multi-year financial plans to evaluate potential funding sources for operations and maintenance (O&M) and capital costs of storm drainage Programs. Storm Drainage System Valuation-City of Tracy, California.Prepared an analysis of the storm water drainage system owned and operated by the West Side Imgation District.The city was negotiating the purchase of this system,which serves the city.Analysis includes an evaluation of the condition, capacity, annual operations and maintenance (O&M) costs, I projected capital improvement, and a valuation of the entire system using 1 book value less depreciation, replacement costs, replacement costs less depreciation,and market value.Also performed an inventory and 1 inspection of canals, culverts, and pumping facilities, and assessed needed 1 capital improvements for the possible acquisition of the city from the Tracy Irrigation District. I EM 051 Thomas E. Gould Experience Mr. Gould has more than 34 years of experience providing financial planning and rate studies for water, wastewater, and storm drainage Project Role utilities. He is nationally renowned for his expertise in regards to financial and rate planning. Cities or districts faced with rapid customer growth, Principal-in-Charge and potential partnerships, or large capital projects have relied on his Quality Assurance/Quality experience to formulate financial plans, or implement fair rate adjustments, Control (QA/QC) via comprehensive studies and open communication. Education A number of utilities have utilized Mr.Gould's negotiation services, Master of Business Admin, primarily as they relate to developing contractual agreements for wholesale Business Administration, electric,water, and wastewater services. His services have included the Willamette University, 1976 areas of negotiation, mediation,facilitation, cost analysis, and drafting of Bachelor of Arts, Business contract language. Administration,Central project experience includes: Washington University, 1974 Water and Sewer Rale Structure and Billing System Enhancements-City of San Luis Obispo, California Project manager for a comprehensive std of the city's utility billing system and rate structure for water and sewer services,and recommendation of enhancements to meet the city's rate structure goals.This project also involved a comprehensive review of AMR systems that would support the city's goals of customer satisfaction, increased operational efficiency, and cost recovery. Comprehensive Water and Sewer Rate Study and System Development Charge Study-City of Folsom, California Project manager for a comprehensive water and sewer rate gudy and connection fee analysis The major focus of the study was on the water utility and establishing metered rates for a previously un-metered residential area of the city (Ashland).At the same time,the city did not have financial rate setting policies in place and, as a result,the water rates were under-funding the renewal and replacement capital projects.The study also created an improved policy concerning the use of system development fees and their application against debt service.While the city's historical approach minimizes rates in the short-term,the city was nearing build-out and expected the fees to decrease significantly in the future. Developed a financial plan to transition the rates to more cost-based levels.A significant element of the study was the public outreach element of the study as it related to the implementation of the rates and the requirements under Proposition 218.Assisted with a number of community meetings and city council meetings.Also developed cost-based impact fees for the city for the water and sewer utility. Comprehensive Water Fd Sewer Rate Study and Capacity Charges-Dublin San Ramon Services District,Dublin, California Project manager for a comprehensive water and sewer rate s Wdy and system development charge analysis.The district had significant growth and capital facilities plans. Given that, a major component of the study was developing financial policies to address these capital planning issues and the development of cost-based system development charges for each utility. In developing the system development charges,revised the district's methodology to be in conformance with AB 1600 and create a clear nexus between new development and capacity expansion. For the rate studies, developed water Z 052 m _ Thomas E. Gould and sewer rate models for the district that were designed based upon their specific chart of accounts and flow of funds between replacement related capital and growth-related capital projects.Worked extensively with the district's board of directors to discuss the various policy issues and recommendations of the study. Comprehensive Water Rate Study and System Development Charge Study- City of Santa Cruz,California Principal-in-Charge for a comprehensive water rate study and review of water connection charges that would support large capital improvement projects associated with the expansion of its source of supply.Thecity was facing large capital improvement projects associated with the expansion of its source of supply (desalination plant).This project involved developing a financial plan that established rate policies and determined the appropriate rate differential for outside city customers.An important part of the study was the development of conservation-based water rates to extend the existing water supplies. As a part of the cost-of-service study, determined the appropriate rate differential for outside city customers. Comprehensive Water Rate and Supply Capacity Charges-City of Stockton, California Provided quality assurance/quality control (QA/QC) for development of a financial model to calculate the connection fees for a new water source developed to meet the demands of growth,The emphasis of this study was to ensure that the various project cost elements were allocated equitably to future versus existing customers. Sewer Rate Study-South Tahoe public Utilities District,South Lake Tahoe, California Project manager for a comprehensive financial planning and cost of service study for the district's wastewater utility and updated system development charges.This project involved working with the district's board to establish financial policies for rates. Other tasks included developing a comprehensive financial plan and cost of service analysis. By critical determination of reasonable assumptions concerning wastewater flows;developed reasonable surrogate information that met the district's board and client approval. Water Rate Study-Mesa Consolidated Water District;Costa Mesa, California Principal-in-Charge for a project that established written financial policies to help determine the district's rates including minimum reserve levels,replacement funding levels,target debt service coverage Ih ratios, and the use of"generally accepted" analyses to establish rates. Other tasks included developing a financial plan that incorporated the master % plan and asset replacement plan into a 10-year forecast.A forecast of water supply costs based upon the mix of water supply resources available to the district was also prepared. Sewer Rate Design-Squaw Valley public Service District, Olympic Valley, California.Project manager for review of the methodologies used by the district to allocate its sewer costs. Squaw Valley has system usage characteristics.Recommended allocating the capacity related costs qJ associated with the districts source of supply and distribution mains. Chosen to update the district's cost of service model and a more equitable allocation between customers, and the expansion of the model to consider additional customer classes of service. fl 053 Thomas E. Gould Comprehensive Cost of Service Study-Nevada Irrigation District, Grass Valley,Nevada.Project manager for a comprehensive water and wastewater cost of service/rate stuff that required allocating costs between potable and non-potable customers.The retail water costs were also allocated between retail and wholesale customers.Also conducted an analysis and update of the district's annexation/connection fees,and on thew non-potable irrigation rate structures.This study provided the basis for cost-based connection fees for the district. Comprehensive Water Rate Study dy-City of Reediey,California.Developing a I Water rate stuff Water and Sewer Utility Rate Study-Tahoe City Public Utility District, Tahoma, California Conducted a rate study for the water and sewer utilities, Galt Meter Implementation Plan and Water/Wastewater Cost of Service Studies-City of Gait,California Provided quality assurance/quality control (QA/QC)for development of a meter implementation plan (6,500 customers),water and wastewater cost of service studi s to develop cost based water and wastewater rates, and update of the city's current wastewater treatment plant upgrade fee Sewer.Fee Model,Analysis, and Recommendations-City of PIeasanton, California Project manager for a comprehensive local sewer rate study, which included rate policy evaluation and technical evaluation. Fresno Water Metering Implementation and Water Rate Study-City of Fresno, California Project manager for update of the city's residential water meter program/system evaluation and rate study. Developed a water meter implementation plan to identify meter and automated meter reading (AMR) requirements and an installation timeline for the city to meet AB 514 and US Bureau of Reclamation schedule requirements. Developed residential volumetric metered rates for the city's current flat rate customers.The metered rate was "revenue neutral",meaning it was designed to collect the same amount of revenue as the City's flat rates. (2006 to 2008) On-Call Financial Consulting Services-Sweetwater Authority, Chula Vista, California Principal-in-Charge for assisting Sweetwater s Board and management in understanding approaches to pricing and buying water from a wholesaler,the economic theory behind each approach, and the advantages and disadvantages of each. Water, Sanitary Sewer, and Storm Drainage Rate Study,System Development Charges,and Financial Plan-City of Bonney Lake,Washington Project manager for a comprehensive water sanitary sewer and storm drainage rate study,For the sewer utility,the rate structure for residential customers was revised to a volumetric approach. Also conducted a comprehensive water, sewer and storm doinage study to develop a financial plan to meet the infrastructure funding requirements and provide equitable and cost- based rates. Developed system development charges to fund capacity related improvements.Also reviewed the storm drainage capital improvement program. 054 Thomas E. Gould Water, Sanitary Sewer,and Storm Drain Rate Study-City of Mountlake Terrace, Washington. Project manager for a comprehensive rate study for the water, sanitary sewer, and storm drainage utilities. Other tasks included development of a storm water utility financial plan and rates.work session on financial policies to aid in setting rates,review of the city's reserves to determine target reserve balances for each system, and setting aside of q9 funds for the possible repercussions of the Endangered Species Act (ESA). The rate structure proposed was based on the amount of impervious surface area of a property. Kalispell Water,Sanitary Sewer,and Storm Drainage Rate Studies and System Development Charges-City of Kalispell,Montana Developed financial plans for the water, sanitary sewer. and storm drainage utilities. The plans looked at the adequacy of rate revenue to pay for operation and maintenance, debt service,.maintain minimum cash balances, and pay for capital improvements.The storm drainage master plan was developed to provide for incremental increases in the storm water rates over the five- year period and at the same time provide increased funding for storm water infrastructure improvements. Water,Sewer,and Storm Drainage Rate Study-City of Bremerton, Washington Project manager for development of a comprehensive water, sewer. and storm drainage rate study as a result of litigation against the city. Other tasks included providing expert witness testimony on the city's behalf. Prioritized rate issues, such as levels, structures,equity between customers, and debt service needs. Previously established the storm drainage utility and rates, and over time,implemented rates based on impervious surface area. lastly,this project involved assisting in contract negotiations for water and sewer service rates used by a U.S. Navy facility. Water and Sewer Rate Study and System Development Charges-City of Water,Sanitary Sewer,and Storm Drainage Rate Study-City of Bremerton, Washington.The city is undergoing a significant level of growth. Conducted a study to establish cost-based rates and create a transition plan to move the city's rates to adequate levels. Additional responsibilities involved developing a cost-based system development charges (impact fees) for water.sewer, and storm drainage utilities and assisting in the negotiation of new wholesale water and sewer rates with the U.S. Navy. Rate Study Update for Water,Sanitary Sewer,and Storm Drainage Utilities- City of Renton, Washington. Project manager for a comprehensive water, sanitary sewer, and storm drainage rate study focusing on the long-term capital improvement program of the utilities and the optimal means of financing projects with the least impact upon rates. Rate Study for Pasco Water,Sanitary Sewer,Stormwater,and Irrigation Utilities- City of Pasco, Washington Project manager for a comprehensive rate study for financing capital improvements projects for the water, d sanitary sewer, stormwater. and irrigation utilities. Whitefish Water,Sanitary Sewer,and Storm Drainage System Master Plan- City of Whitefish,.Montanm Provided financial planning assistance during preparation of a comprehensive water, sanitary sewer. and storm drainage B system master plan.Work included evaluating population growth, modeling the existing and future systems, evaluating alternatives for 05 1 - � 1 Thomas E. Gould 1 1 meeting existing and future demand, defining necessary improvements to meet demand and regulatory requirements, estimating the cost impacts of 1 the necessary improvements prioritization of improvements capital improvement 1ragram development, and financial management evaluation i Water and Sewer Rate Study and System Development Charge Analysis- Woodinville WaterDfstrict,Woodinville, Washington Project manager for 1 comprehensive water and sewer rate study and system development charge (impact feel analysis Bozeman Impact Fee Analysis-City of Bozeman,Montana,Assisted the city with analyzing and implementing impact fee for water sanitary sewer ! police, and fire services. 1 Marysville Water and Sewer Rate Study-City of Marysville, Washington Conducted a comprehensive water and sewer rate study as a resultof the need to expand and upgrade both their water and sewer facilities.Analyzed the financial/rate impacts of various financing scenarios and worked with 1 the city council to develop a plan to phase-in the rates over a two-year time period. Water and Sewer Rate Studies-City of Port Angeles, Washington Project manager for development of a financial model that provided the city with water and sewer rates that were cost-based and easy to administer. Water and Sewer Rate Study-City of Sandpoint,Idaho. Project manager for a water and wastewater rate study and review of new user facility fees Developed a rate transition lzlan and cost-based impact fees to fund the needed expansion to the water and sanitary sewer infrastructure Hanover Water and Wastewater Rate Study-Hanover County,Hanover, Virginia Project manager for a comprehensive-water and wastewater rate study for the county that focused on establishing financial policies for 1 establishing rates. The county had relied upon impact fees to fund debt obligations, and as growth slowed, a new philosophy or approach was E required.This study developed financial policies to address these issues and established adequate funding for debt service and capital improvement funding.Additional tasks involved establishing a cost-based impact fees. 1 Walla Walla Wastewater Rate Study- City of Walla Walla, Washington Conducted a comprehensive rate study for the city's wastewater utility that included revenue requirements,cost of service, and rate design. Developed a seven-year financial plan that phased in rates over time to minimize P impacts, as well as identified several rate options that assisted the City p determine the most equitable option for implementation. e Cost of Service Study-Municipality of.Anchorage,Anchorage Water and Wastewater Utility,Anchorage,Alaska Project manager for a comprehensive water and wastewater rate study. Added data and reviewed the operations of the utilities existing cost of service model. Other tasks a involved reviewing various classification and allocation costs and methods for reasonableness, specifically for the funding of public and private fire protection. Reviewed rates of contractual customers to assure they were in a compliance with their contract.Developed expert witness testimony on.the results of the revenue requirements, cost of service, and rate design issues. 056 HR Thomas E. Gould m Review of Water and Sewer Rates and Operational Study-City of Fayetteville,Arkansas. Reviewed the city's water and sewer rate study, conducted by another outside consultant, to assure that the study conformed to the wholesale contract requirements and generally accepted rate making techniques. Other tasks included assisting in negotiating a new wholesale sewer rate with one of the city's wholesale customers.Also provided an operations study, in conformance with the city's bond covenants. Comprehensive Sewer Rate Study-City of Logan, Utah. Project manager for a comprehensive sewer cost of service study. Analyzed infiltration and inflow based upon customer location and infrastructure age and type. Reviewed equity of rates charged to customers. Developed wholesale-based rate comparison of an allocation of treatment costs based upon contribution to the treatment plant. Determined retail rate using the same methodology as well as an allocation of collection system costs based upon location within the city's retail service area. t 4 r 45' �Z $ AZUSA r.nt . uearn CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 26, 2009 SUBJECT: FUEL COST ADJUSTMENT FOR REFUSE COLLECTION SERVICES RECOMMENDATION That the Azusa Utility Board/City Council approve attached resolution to eliminate fuel cost adjustment granted to Athens Services in June 2008 effective January 1, 2009, and authorize staff to continue negotiations with Athens Services to develop a methodology that addresses fuel cost adjustments going forward. BACKGROUND In June 2008, the City adjusted refuse rates pursuant to terms and conditions included in the City's exclusive franchise agreement with Athens Services. Because fuel costs were escalating well above inflation as measured by the Consumer Price Index (CPI), Athens requested a fuel cost adjustment to pay for the added cost of diesel fuel. The City agreed to pay Athens $0.95 per gallon which amounted to 1.48% of total revenues since this was deemed to be the cost for fuel which had escalated above CPI. See below: Price Per Gallon in July 2006: $2.82 Price Per Gallon with CPI Adjustments $3.03 Price in March 2008 $3.98 Deficiency Per Gallon $0.95 Soon after rates were adjusted, prices for fuel continued to escalate and reached their peak of $5.03 per gallon in mid-July, according to Energy Information Administration, a federal government fuel price information source. As shown in chart on next page, fuel prices started to drop following mid-July and by mid-November were below the $3.03 per gallon price point. Hence, by mid-November it became clear that the extraordinary fuel cost adjustment was no longer justified and City staff and Athens Services discussed this by telephone and parties agreed 058 to monitor the situation with understanding that continued declines would warrant a downward refuse rate adjustment. Weekly California Retail On-Highway Diesel Prices Average All Types OS -California 5.10 5.00 4.90 4.80 4.70 4.60 4.50 4.40 4.30 4.20 4.10 0 4.00 3.90 3.70 3.60 3.40 3.30 0 3.20 0 3.10 3.00 2.90 2.80 2.70 2.60 2.50 2.40 2.30 2.20 2.10 ro m m n n n n n n ro m m m m m m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o a a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c c c c c c c c c c c c c c c c Source: Energy Information Administration Since November, prices have generally continued to decline and were about $2.23 per gallon during first week of January. In past six months, prices have averaged about $3.92 per gallon, so the fuel cost adjustment the City provided to Athens in June (equal to $3.98 per gallon) adequately compensated Athens during this period. However, now, in light of the new price levels; the City and Athens agree to discontinue the extraordinary fuel cost adjustment approved back in June. To effect this change January 1, 2009, the attached amendment is proposed which must be approved by adoption of attached resolution. Because the current fuel prices are below $3.03 per gallon, which is the price embedded into refuse rates, City staff expressed interest to Athens in lowering rates further so that the contractor would not profit on cost savings due to the extraordinary reductions in fuel costs. Parties are continuing discussions on this issue and City staff will seek to incorporate any cost savings into the rate adjustment in June. 059 FISCAL IMPACT The fuel cost adjustment provided Athens Services back in June equates to about $6,970 per month in additional revenues, or$0.30 per household per month for single family residential service, and $1.40 per month for 3 cubic yard commercial bin serviced one time per week. By eliminating the fuel cost, rates will be reduced by same amount. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities 060 RESOLUTION NO. A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, APPROVING THE TWELFTH "AMENDMENT TO THE EXCLUSIVE FRANCHISE AGREEMENT WITH ARAKELIAN ENTERPRISES TO AMEND THE SERVICE RATES AND FEES FOR THE PERIOD OF JANUARY 1, 2009 THROUGH JUNE 30, 2009. WHEREAS, on October 2, 2000, the City Council of the City of Azusa, approved an Exclusive Franchise Agreement with Arakelian Enterprises, Incorporated (Contractor), for refuse collection and recycling services ("Original Agreement"); and WHEREAS, Section 5 of the Original Agreement requires that service rates be modified annually to account for cost of living changes and changes in disposal costs ("Adjustments") on July 1 of each year; and WHEREAS, the rate adjustment approved in June 2008 included a fuel cost adjustment to pay for the higher cost of diesel fuel; and WHEREAS, fuel prices have declined to levels below what they were in June 2008; NOW,.THEREFORE,THE CITY COUNCIL OF THE CITY OF AZUSA,CALIFORNIA, DOES FIND AND DECLARE THAT: SECTION 1: Adoption of Twelfth Amendment. The attached Twelfth Amendment to the Exclusive Franchise Agreement Between the City of Azusa and Arakelian Enterprises, Inc. for Refuse Collection,Recycling and Disposal Services is hereby approved and shall be effective January 1, 2009, through June 30, 2009. SECTION 2: Purpose. The sole purpose of this Twelfth Amendment is to eliminate a fuel cost adjustment that went into effect July 1, 2008. SECTION 3: Authorization. That the Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Resolution. PASSED AND APPROVED on this 26th day of January 2009. Mayor 061 I HEREBY CERTIFY that the foregoing resolution was duly passed by the City Council of the City of Azusa at a regular meeting of the Utility Board/City Council thereof on the 26th day of January 2009, by the following vote of the City Council: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: City Clerk 062 AMENDED AND RESTATED FRANCHISE AGREEMENT BETWEEN THE CITY OF AZUSA AND ARAKELIAN ENTERPRISES, INC. FOR REFUSE COLLECTION, RECYCLING AND DISPOSAL SERVICES AMENDMENT NO. 12 This Twelfth Amendment to the Exclusive Franchise Agreement is entered into this Twenty-Sixth day of January 2009 by and between the City of Azusa, a municipal corporation ("City") and Arakelian Enterprises, Inc., a California Corporation ("Contractor"). Effective January 1, 2009, the attached rate schedule shall replace Exhibit A of the Existing Exclusive Franchise Agreement approved on October 2, 2000, IN WITNESS WHEREOF, the parties have executed this Amendment No. 12 as of the date first set out herein. Date: Date: CITY OF AZUSA ARAKELIAN ENTERPRISES, INC. A Municipal Corporation d.b.a. ATHENS SERVICES Joe Rocha, Mayor ATTEST: Vera Mendoza, City Clerk APPROVED AS TO FORM: Best Best& Krieger, LLP City Attorney 063 EXHIBIT A TO FRANCHISE AGREEMENT BETWEEN THE CITY OF AZUSA AND ARAKELLAN ENTERPRISES, INC. MRF entire waste stream except green waste and clean inerts; Service Processitg/ Service Fee Franchise Monthly Diesel Cost Monthly Disposal Fee AB 939 Rate or Fee Fee Total Single Family $10.75 $9.47 $2.25 $0.75 J21L2 Multifamily Bin $7.01 $8.22 $1.69 $0.67 $0421 IL12 Commercial Bins 3 Cubic Yard I Day/Week $38.06 $56.64 $10.52 $3.67 $LA0 IS 08.89 2 Days/Week $76.12 $64.12 $15.58 $7.35 JU0117 3 Days/Week $114.18 $71.65 $20.64 $11.02 $273 ILI7.49 4 Days/Week $152.24 $79.05 $25.69 $14.68 83-4„ 2$ 71.66 5 Days/Week $190.30 $86.68 $30.77 $18.36 $4.48 3S 26.11 2 Cubic Yard I Day[Week $25.37 $59.23 $9.40 $2.45 $J-2-3 $96.45 2 DaysfWeek $50.75 $71.01 $13.53 $4.91 $7-80 I$ 41.20 3 Days/Week $76.12 $82.63 $17.64 $7.36 $235 J1EK3.75 4 Days/Week $101.50 $95.14 $21.85 $9.81 $341 JL28.15 5 Days/Week $126.87 $106.56 $25.94 $12.24 $1A3 JL71.61 1.5 Cubic Yard 1 Day/Week $19.03 $45.51 $7.17 $1.83 $496 IZL54 2 Days/Week $38.16 $69.88 $11.99 $3.66 $123.59 3 Days/Week $57.09 $93.61 $16.74 $5.49 $2.2-3 $172.93 Saturday Service $38.06 $56.64 -$10.52 $3.67 &"0 $108.89 Locked Lid Bin Change Out n/a $59.70 $6.63 n/a $66.33 Ongoing Service n/a $ 6.64 $0.74 n/a $7.38 Temp Bins $8.79 $89.58 $10.93 $0.84 $4,46 1$ 10.14 X-tra Dumps Same Day $8.79 $36.80 $5D6 $0.84 $G.P 51.49 Different Day $6.79 $56.14 $7.21 $0.84 &494 7$ 2.98 Commercial $7.01 $18.23 $2.80 $0.67 S6.2F 28.71 Barrels Roll Offs Ton Based $246.70 Ton Based $7.11 $3-54 Ton Based 064 I :.' ra AZ USA rnr � m�erro CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES< a ' DATE: JANUARY 26, 2009 �� SUBJECT: FUNDING REQUEST BY CALIFORNIA RESOURCE CONNECTIONS RECOMMENDATION That the Azusa Utility Board/City Council approve funding request by California Resource Connections (CRC) to conduct two environmental programs, and authorize payments to CRC in amount of $7,400 from Beverage Container Recycling Grant and Litter Clean-up Funds and $3,900 from AB 939 Fee Funds for proposed program activities as outlined in funding request. BACKGROUND In August 2007, the City entered into a Memorandum of Understanding (MOU) with CRC which provided CRC with seed funding to make improvements to the Taylor House located off Highway 39, north of the Mountain Cove Development. As part of that MOU, the City agreed to provide funding to CRC to help them conduct a watershed education walk and litter clean up event called Think River and a smart gardening and backyard composting workshop. Both events were successfully implemented by CRC during 2008. CRC is now requesting funding to implement the same two environmental programs this year. The first event would be the gardening and composting workshop to be conducted on March 28, 2009, at the Azusa River Wilderness Park. CRC's proposal is attached and describes the program in some detail using format specified in MOU. Funding request for the composting workshop is $3,900 and would cover workshop planning, coordination, presentation stipend and reporting. Compost bins and worm bins would be given away at the event free to Azusa residents. Since there is an inventory of compost bins and worm bins from the last workshop, no funds have been requested to purchase additional bins for give away at proposed workshop. The Think River! Litter Clean up event is proposed this year for April 18, 2009, at the Azusa River Wilderness Park and $7,400 has been requested to support this event. This event would 065 begin at Azusa River Wilderness Park/Encanto parking lot where information would be provided to participants on watershed and natural setting and from there participants would be led on a walk along the river to the south picking up litter along the way. An information station would be staged at southern point in parking lot across from Ranch Road off Highway 39 to refresh participants and provide them with further information on native plants and animals. From there, participants would return to the Encanto parking lot where trash bags would be collected, counted, weighed and disposed of. Last year, about 220 people participated in similar event and picked up about 600 lbs of trash along the river. Both events represent good examples of public-private partnerships that benefit the environment. During last year's events, CRC was able to get in-kind contributions from various organizations including Azusa Pacific University, U.S. Forest Service, Athens Services, Vulcan Materials, La Flor de Mexico, the California Conservation Corps, Watershed Conservation Authority, City of Hope, the San Gabriel Valley River Water Committee, San Gabriel Valley Mosquito and Vector Control District, and Los Angeles County Department of Public Works as well as other city departments, like Recreation and Family Services and the Police Department. Considering prior year participation and outcomes, including voluntary and in-kind contributions made, staff recommends support of CRC's proposed programs in amounts requested. It is understood that reports would be provided by CRC to the City following each event on how the funds were used and the level of public participation achieved at each event. FISCAL IMPACT Beverage container grant funds are recommended for the Litter Clean up event in amount of $7,400 from account 28-40-750-064-6625, and AB 939 fee funds are recommended for the Composting event in the amount of$3,900 from account 28-40-750-065-6625. Both accounts currently have adequate budget balance to support the funding request and expenditures represent authorized uses of such funds. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities 1 .uv CRC 09 Funding Request.pdf 066 CALIFORNIA RESOURCE CONNECTIONS, INC . 1201 N. Azusa Avenue • Azusa, CA 91702 • 626.969.2491 • www.water5hedconnections.or9 RESEARCH • EDUCATION • ACTION • LAND To: Azusa Utility Board and Azusa City Council From: Suzanne Avila, Program Director California Resource Connections, Inc. Date: January 12, 2009 Re: Funding Request for Backyard Composting Workshop and Litter Clean-up Program California Resource Connections, Inc. (CRC), and its main partners, the Watershed Conservation Authority/Rivers and Mountains Conservancy (WCA/RMC) and the California Conservation Corps (CCC), are proposing 2 community environmental education events for 2009, specifically a Backyard Composting/Gardening Workshop at the Azusa River Wilderness Park and a Litter Clean-up along the San Gabriel River. All events exemplify environmentally-conscious programs that are community-based and have an educational activity as a main component. The goal of providing environmental education programs is to.educate residents on the inherent qualities of the natural resources of the San Gabriel River watershed and to teach sustainable practices. CRC and its main partners will work with several City of Azusa departments to develop and produce these events and also outreach to other community organizations to build our partnership base. Program descriptions for each of the 2 proposed programs are listed below, followed by a detailed budget outlining associated costs. All application questions are also addressed. It is a pleasure working with the City of Azusa in creating and developing environmental programs at the Azusa River Wilderness Park in the Canyon City! 067 2009 Environmental Program/Activity Application EVENT #1 COMMUNITY GARDENING AND COMPOSTING WORKSHOP Saturday, March 28, 2009,9:00 am — 11:30 am Azusa River Wilderness Park 100 N. Old San Gabriel Canyon Road Azusa, CA 91702 1. Description of program: The goal of this event is to educate residents on native plant gardening to promote water conservation practices and various methods of backyard composting, including vermiculture (worm composting) to promote sustainable practices. Outreach will be to Azusa families and the community at large. Free compost bin give-aways will be advertised prominently as a draw (proof of residency required/one per household). Morning check-in will begin with a sign in sheet where addresses will be collected and checked against those that received a free bin the previous year. Brief welcoming remarks will introduce the certified Landscape Design Professional and/or Master Composter who will conduct the educational demonstrations, complete with a safety lesson. Composting bins (which were already purchased with 2008 funds) will be given away to those in attendance. Additional educational materials regarding sustainable practices will be available for participants to take home (i.e. websites, book titles, journals, regional native plant sites, future watershed related events, etc.) The workshop will conclude with a brief discussion on the health benefits of gardening. This event is being planned for a total of 45 participants (estimate is based on attendance at 2008 composting workshop). 2. Dates when program or activities will be carried out: Saturday, March 28, 2009, 9:00 am — 11:30 am 3. Description of how program helps the City comply with environmental regulations: Communicating directly with Azusa Light and Water Representative(s) will be a guiding component of planning the event. All data gathered from participants will be solicited and compiled according to the requirements of any agency regulations that the City reports to (i.e. TMDL's, beverage recycling count, etc). 2 Q�8 4. Description of Target Audience: Teenagers to Adults S. Description of How Program will be advertised and marketed: Azusa Herald Azusa Pacific University Azusa Unified School District Citrus Community College City of Azusa On-line calendar City Council meetings during public participation City hall marquee Friends of the Library newsletter Light & Water Clean and Green Campaign Rotating cable bulletin Woman's Club newsletter CREEC—LA (California Regional Environmental Education Community — Los Angeles) San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy website San Gabriel Valley Tribune 6. Description of Materials to be used in conducting outreach or activities: A descriptive flyer and press release will be created and translated into Spanish, then distributed as described in #5 above. 7. List of all costs associated with program or activities: See Program Budget outlined in chart on Page 7. 8. Description of funding from other agencies or in-kind laborlvolunteers: IN-KIND LABOR / VOLUNTEERS SPONSOR INCOME RESOURCE Azusa City Libra In-Kind Bottled water Azusa Historical Society In-Kind Historical displays of the San Gabriel River Azusa Light & Water In-Kind Bottled water 3 069 IN-KIND LABOR / VOLUNTEERS SPONSOR INCOME RESOURCE Azusa Recreation and Family In-Kind Use of equipment (easy up tents, Services chairs, tables Azusa Wellness Center In-Kind Presentation on health benefits California Conservation Corps In-Kind Event preparation, set up, and tear down, Parking patrol Rainbow Canyon Equestrian In-Kind Use of property for offsite parking Ranch Watershed Conservation In-Kind Use of facilities at Azusa River Park Authority/Rivers and Mountains Conservancy 9. Description of how program results will be measured and reported to the City: Data on participants and outcomes will be collected at each event, along with organizational information such as number of volunteer hours received, in kind donations and amount of contributions. CRC shall provide the City with a report by July 31, 2009 of all outcomes, including participant data, any survey information collected, and a final budget showing all expenditures. EVENT#2 THINK RIVER! LITTER CLEAN UP Saturday, April 18, 2009, 9:00 am — 11:30 am Azusa River Wilderness Park 100 N. Old San Gabriel Canyon Road Azusa, CA 91702 1. Description of program: This litter clean up will be. advertised as a San Gabriel River Clean Up and Watershed Education Walk as part of the City's April Clean and Green activities. Outreach will be made specifically to Azusa schools K-12, including the Jr. ROTC at both Azusa and Gladstone High Schools, and also to Citrus College and Azusa Pacific University emphasizing the fact that students can earn community service hours by participating. The day's activities will begin at the Azusa River Park/EI Encanto parking lot with a sign up list, morning snacks, and brief welcoming remarks. (Healthy and sustainable practices will be utilized when serving and cleaning up the snacks). All those participating will be invited to visit three educational booths before the River Walk begins. The three booths will have experts on hand to disseminate information on the following topics: history of the San Gabriel River Watershed in terms of water supply and water quality (i.e. how trash affects water quality), health benefits of an outdoor walk (pedometers are given 4 070 to each participant), and safety along the river and its natural environment (geologic setting of river, including plants and wildlife). Gloves, trash bags, and safety aids will be distributed during the educational sessions. Participants will then be escorted safely across Highway 39 to the northern terminus of the Azusa River Bike Trail and asked to walk south, picking up litter along the way while counting the number of steps taken to complete the walk, via their pedometers. CCC members will be walking continuously up and down the bike trail to ensure safety of participants and to disseminate event information as needed. One station will be staffed with volunteers and set-up strategically to serve as the turn-around point at the City owned parking lot north of the intersection of Ranch Road and Hwy 39/San Gabriel Canyon Road (across from the Forest Service Gateway Center). This station will give participants a chance to drink water before heading back north and an opportunity to visit an educational display hosted by a Park Ranger that focuses on native plants and animals. Conclusion of events is back at EI Encanto/Azusa River Park where all trash bags will be collected, counted, weighed, and disposed of properly. This event is being planned for a total of 300 participants (estimate is based on attendance at 2008 river clean up). 2. Dates when program or activities will be carried out: Saturday April 18, 2009, 9:00 am — 11:30 am 3. Description of how program helps the City comply with environmental regulations: Communicating directly with Azusa Light and Water Representative(s) will be a guiding component of planning the event. All data gathered from participants will be solicited and compiled according to the requirements of any agency regulations that the City reports to (i.e. TMDL's, beverage recycling count, etc). 4. Description of Target Audience: Students, families, the community at-large. 5. Description of.How Program will be advertised and marketed Azusa Herald Azusa Pacific University Azusa Unified School District Citrus Community College City of Azusa On-line calendar 5 071 City Council meetings during public participation City hall marquee Friends of the Library newsletter Light & Water Clean and Green Campaign Rotating cable bulletin Woman's Club newsletter CREEC—LA (California Regional Environmental Education Community— Los Angeles) San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy website San Gabriel Valley Tribune 6. Description of Materials to be used in conducting outreach or activities: A descriptive flyer and press release will be created and translated into Spanish, then distributed as described in #5 above. 7. List of all costs associated with program or activities: See Program Budget outlined in chart on Page 7. 8. Description of funding from other agencies or in-kind labor/volunteers IN-KIND LABOR/VOLUNTEERS SPONSOR INCOME RESOURCE Athens Services In-Kind Trash Bags, Cardboard trash containers, one unscheduled trash collection prior to event Azusa Historical Society In-Kind Historical displays of the San Gabriel River Azusa Light & Water In-Kind Advertised as part of City's Clean and Green Campaign Azusa Police Department In-Kind One officer to escort participants from River Park to River Bike Trail, Use of neon sign to slow traffic on Hwy 39 Azusa Recreation and Family In-Kind Use of equipment (easy up tents, Services chairs, tables Azusa Wellness Center In-Kind Health experts disseminating information on benefits of outdoor walk California Conservation Corps In-Kind Crew for event preparation, set up and removal, Event leaders with presence along the bike path to aid, escort, educate participants 6 072 IN-KIND LABOR /VOLUNTEERS SPONSOR - INCOME RESOURCE San Gabriel Valley Mosquito In-Kind Insect repellant for participants, and Vector Control District educational materials U.S. Forest Service In-Kind Event Equipment, Supplies, and Educational Materials Vulcan Materials Company In-Kind Donation of pedometers for participants, bottled water Watershed Conservation In-Kind Park Ranger as instructor/trainer for Authority safety session, Park Ranger hosting native plant and animal display 10.Description of how program results will be measured reported to the City: Data on participants and outcomes will be collected at each event, along with organizational information such as number of volunteer hours received, in kind donations and amount of contributions. CRC shall provide the City with a report by July 31, 2009 of all outcomes, including participant data, any survey information collected, and a final budget showing all expenditures. 2009 Program Budget — 2 Events ESTIMATED EVENT I MATERIALS FUNDING PARTNER NEEDED REQUESTED CONTRIBUTION TOTAL 1 Community Gardening and Composting Worksho Program Planner(s)stipend for $3,200.00 $3,200.00 42.66 hours $75.00/hour 47 Composting Bins = $3,497.00 $3,497.00 14 Worm +33 Soil Savers $89.50 each+ $68.00 each Creation, Translation, Duplication, $300.00 $300.00 and Distribution of Outreach Materials Master Gardener(s) $400.00 $400.00 (presentation stipend) Bottled Water $100.00 $100.00 Snacks $250.00 $250.00 Fruit, Bread, Orange Juice Azusa Recreation donation of $850.00 $850.00 Equipment (easy up tents, tables, chairs CCC donation of Corps $1,000.00 $1,000.00 Members/Event Leaders (12 hours @ $25.00 hour), Use of a ui ment 7 073 ‘ ,. 9, AZUSA 111T P. cearra CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES • DATE: JANUARY 26, 2009 SUBJECT: RESOLUTION APPROVING PARTICIPATION IN THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD'S USED OIL BLOCK GRANT RECYCLING PROGRAM RECOMMENDATION It is recommended that the Utility Board/City Council adopt resolution approving the City's participation in the California Integrated Waste Management Board's (CIWMB) used oil block grant recycling program. BACKGROUND The City of Azusa maintains a year-round used oil recycling program, which is largely administered by a consultant, Huls Environmental, and funded by a used oil recycling block grant from CIWMB. The program being carried out in Azusa consists of the City supplying used oil drain pans to participating used oil collection centers, which currently includes Dick's Auto Supply, Firestone, Jiffy Lube, Kragen Auto Parts, and Y Tires, and advertising to promote drop off of used oil at these centers. In fiscal year 2007-2008, about 600 residents received free used oil drain pans from the certified collection centers and deposited 13,075 gallons of used oil and 570 used oil filters. To receive funds for the upcoming fiscal year, Azusa must submit a used oil block grant agreement and payment request form by February 21, 2009. These documents are attached and most terms and conditions of the agreement are consistent with previously approved agreements. A resolution must also be submitted which identifies the job titles of individuals authorized to execute all grant documents. Attached resolution will be in effect for five years and adds Liza Cawte, Administrative Technician, as one of the authorized signatories to the used oil block grant agreement and other documents used to administer this program. / ) 6/°9 0 74 d FISCAL IMPACT This year's grant will provide $12,426 in revenue to the City to fund this program. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Liza Cawte, Administrative Technician 07 5 RESOLUTION NO. 09—C9 A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING PARTICIPATION IN USED OIL AND HHW GRANTS ADMINISTERED BY THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD. WHEREAS, the people of the State of California have enacted the California Oil Recycling Enhancement Act that provides funding for Used Oil Recycling Grants to eligible cities and counties for establishing and maintaining local used oil collection programs and encourage recycling or appropriate disposal of used oil; and WHEREAS, the people of the State of California have enacted Assembly Bill 1220 (Eastin, Statutes of 1993, Ch. 656) that provides Household Hazardous Waste Grants (HHW Grants) to local governments to establish and implement waste diversion and separation programs to prevent disposal of hazardous waste, including household hazardous waste, in solid waste landfills; and WHEREAS, the California Integrated Waste Management Board has been delegated the responsibility for administering the Used Oil and HHW Grant programs, which includes procedures governing the application by and payment to eligible cities and counties; and WHEREAS, if awarded, the applicant will enter into a Grant Agreement(s) with the California Integrated Waste Management Board for the implementation of said grants; NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, authorizes the submittal of grant applications to the California Integrated Waste Management board for all available grants under the California Oil Recycling Enhancement Act and all available HHW grants for the period of January 26, 2009-January 26, 2014. BE IT FURTHER RESOLVED that the Assistant to the Director of Utilities and Administrative Technician are hereby authorized and empowered to execute in the name of the City of Azusa all necessary applications, contracts, payment requests, agreements and amendments hereto for the purpose of securing grant funds and to implement and carry out the purposes specified in the grant application. PASSED,APPROVED AND ADOPTED this 26th day of January, 2009. /P'er‘ Joseph R. Rocha Mayor ATTEST: Vera Mendoza City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that the foregoing Resolution No. 09-C9 was duly introduced and adopted at a regular meeting of the Azusa Utility Board/City Council on the 26th day of January, 2009,by the following vote,to wit: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Vera Mendoza City Clerk STATE OF CALIFORNIA•ENVIRONMENTAL PROTECTION AGENCY CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD GRANT AGREEMENT CIWM8110(Revised 10107) GRANT NUMBER UBG14-08-55 NAME OF GRANT PROGRAM 2008/2009 Used Oil Block Grants-Fourteenth Cycle a. GRANTEE NAME City of Azusa TAXPAYER'S FEDERAL EMPLOYER IDENTIFICATION NUMBER TOTAL GRANT AMOUNT NOT TO EXCEED 95-6000670 ! $12,426.00 TERM OF GRANT AGREEMENT FROM:July 1,2008 TO: August 15,2011 THIS AGREEMENT is made and entered into on this 19th day of November,2008,by the State of California,acting through the Executive Director of the California Integrated Waste Management Board(the"State")and City of Azusa(the"Grantee). The State and the Grantee,in mutual consideration of the promises made herein,agree as follows: The Grantee further agrees to abide by the provisions of the following exhibits attached hereto: Exhibit A-Terms&Conditions Exhibit B-Procedures&Requirements Exhibits A and B attached hereto and the State approved application are incorporated by reference herein and made a part hereof. The State agrees to fund work done by the Grantee in accordance with this Agreement up to the Total Grant Amount Not to Exceed specified herein. IN WITNESS WHEREOF.the parties hereto have executed this Agreement as of the dates entered below. GRANTEE'NAME(PRINT OR TYPE) CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD City of Azusa SIGNATURE OF CIWMB'S AUTHORIZED SIGNATORY: SIGNATURE OF GRANTEE: (AS AUTHORIZED IN RESOLUTION OR LETTER OF DESIGNEE AUTHORIZATION) r'y t 41/ DATE TITLE DATE Mark Leary,Executive Director Asst. to the Dir. of Utilities (Authonzed rearesenleave) GRANTEE'ADDRESS(INCLUDE STREET,CITY,STATE AND ZIP CODE) 729 N. Azusa Avenue, Azusa CA 91702 CERTIFICATION OF FUNDING AMOUNT ENCUMBERED BY THIS 'PROGRAM/CATEGORY(CODE AND TITLE) 'FUND TITLE AGREEMENT 2008/2009 Used Oil Block Grants-Fourteenth Cycle OIL $12,426.00 (OPTIONAL USE) PRIOR AMOUNT ENCUMBERED FOR THIS AGREEMENT ITEM CHAPTER STATUTE !FISCAL YEAR TOTAL AMOUNT ENCUMBERED TO 3910-602-0100 817 1991 2008/2009 DATE OBJECT OF EXPENDITURE(CODE AND TITLE) $12,426.00 1000-75100-702 II hereby certify upon my own personal knowledge that budgeted funds are available T.B A NO B R.NO. for the period and purpose of the expenditure stated above. SIGNATURE OF CIWMB ACCOUNTING OFFICER. ° ._ DATEO , c ti14a'V2I ?13E 078 EXHIBIT A TERMS AND CONDITIONS USED OIL RECYCLING BLOCK GRANT PROGRAM Fiscal Year 2008/09(Cycle 14) • This grant may not be funded unless the proposed Grantee meets the following two conditions: 1) The proposed Grantee must pay or bring current all outstanding debts or scheduled payments - owed to the California Integrated Waste Management Board within ninety(90)days from the date of the grant award. 2) The proposed Grantee must complete,sign,and return the Grant Agreement within ninety(90) days from the date recorded on the Grant Agreement package's cover letter. The following terms used in this Grant Agreement(Agreement)have the meanings given to them below, unless the context clearly indicates otherwise: "CIWMB"means the California Integrated Waste Management Board. "Executive Director"means the Executive Director of the CIWMB or his or her designee. "Grant Agreement" and "Agreement"means all documents comprising the agreement between the CIWMB and the Grantee for this Grant. "Grant Manager" means the CIWMB staff person responsible for monitoring the grant. "Grantee"means the recipient of funds pursuant to this Agreement. "Program"means the Used Oil Recycling Block Grant Program. "State"means the State of California, including,but not limited to,the CIWMB and/or its designated officer. 1. The Grantee shall acknowledge the CIWMB's support each time projects funded, ACKNOWLEDGEMENTS in whole or in part,by this Agreement are publicized in any medium, including, but not limited to,news media, brochures, or other types of promotional material. The acknowledgement of the CIWMB's support must incorporate the CIWMB logo and state"California Integrated Waste Management Board:Zero Waste— You Make It Happen!" Initials or abbreviations for the CIWMB shall not be used. The Grant Manager may approve deviation from this prescribed language on a case-by-case basis where such deviation is consistent with the CIWMB's Communication Strategy and Outreach Plan. If, subsequent to this Agreement, the CIWMB adopts updated or new logos, slogans or language(language),the Grant Manager may require the Grantee to include this language in newly printed or generated materials. 2.ADVERTISING/ The Grantee shall submit copies of all draft public education or advertising PUBLIC EDUCATION materials to the Grant Manager for review and approval prior to the Grantee's production of materials. Unless omission of the following copyright designation is pre-approved in writing by the Grant Manager,all public education and advertising materials shall state: "® {year of creation} by the California Integrated Waste Management Board(CIWMB).All rights reserved. This publication,or parts thereof, may not be reproduced without permission from CIWMB." 3. AIR OR WATER Under the State laws,the Grantee shall not be: POLLUTION VIOLATION a. In violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; Revised 5/7/08—Entitlement Ts&C's I 019 b. Subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or c. Finally determined to be in violation of provisions of federal law relating to air or water pollution. 4.AMENDMENT No amendment or variation of the terms of this Agreement shall be valid unless made in writing,signed by the parties, and approved as required. No oral understanding or agreement not incorporated into this Agreement is binding on any of the parties. 5.AMERICANS WITH The Grantee assures the State that it complies with the Americans with DISABILITIES ACT Disabilities Act(ADA)of 1990,which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. § 12101 et seq.) The Grantee by signing this agreement hereby certifies that if these services or 6. ANTITRUST CLAIMS goods are obtained by means of a competitive bid,the Grantee shall comply with the requirements of the Government Codes Sections set out below. a. The Government Code Chapter on Antitrust claims contains the following definitions: I). "Public purchase"means a purchase by means of competitive bids of goods, services,or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision(c)of Section 16750 of the Business and Professions Code. 2). "Public purchasing body" means the State or the subdivision or agency making a public purchase.Government Code Section 4550. b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted,it will assign to the purchasing body all rights, title,and interest in and to all causes of action it may have under Section 4 of the Clayton Act(15 U.S.C. Sec. 15)or under the Cartwright Act(Chapter 2 (commencing with Section 16700)of Part 2 of Division 7 of the Business and Professions Code),arising from purchases of goods,materials,or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. c. If an awarding body or public purchasing body receives,either through judgment or settlement,a monetary recovery for a cause of action assigned under this chapter,the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may,upon demand,recover from the public body any portion of the recovery, including treble damages,attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price,less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. d. Upon demand in writing by the assignor,the assignee shall,within one year Revised 5/7/08—Entitlement T's&C's 2 080 r from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and(a)the assignee has not been injured thereby,or(b)the assignee declines to file a court action for the cause of action. See Government Code Section 4554. 7.ASSIGNMENT, a. This Agreement may not be assigned by the Grantee,either in whole or in SUCCESSORS AND part,without the CIWMB's prior written consent. ASSIGNS b. The provisions of this Agreement shall be binding upon and inure to the benefit of the CIWMB,the Grantee,and their respective successors and assigns. 8.AUDIT/RECORDS The Grantee agrees that the CIWMB,the Department of Finance,the Bureau of ACCESS State Audits,or their designated representative(s)shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. The Grantee agrees to maintain such records for possible audit for a minimum of three(3)years after final payment date or grant term end date,whichever is later, unless a longer period of records retention is stipulated, or until completion of any action and resolution of all issues which may arise as a result of any litigation,dispute, or audit,whichever is later. The Grantee agrees to allow the designated representative(s)access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, the Grantee agrees to include a similar right of the State to audit records and interview staff in any contract or subcontract related to performance of this Agreement. [You may find it helpful to share the Terms and Conditions and Procedures and Requirements with your finance department,contractors and subcontractors. Examples of audit documentation include, but are not limited to:expenditure ledger,payroll register entries and time sheets,personnel expenditure summary form, travel expense log paid warrants, contracts, change orders, invoices, and/or cancelled checks.] 9.AUTHORIZED The Grantee shall continuously maintain a representative vested with signature REPRESENTATIVE authority authorized to work with CIWMB on all grant-related issues. The Grantee shall,at all times,keep the Grant Manager informed as to the identity and contact information of the authorized representative. 10.AVAILABIUTY OF The CIWMB's obligations under this Agreement are contingent upon and subject FUNDS to the availability of funds appropriated for this grant. 11. CHILD SUPPORT For any agreement in excess of$100,000, the Grantee acknowledges that: COMPLIANCE ACT a. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal Iaws relating to child and family support enforcement, including,but not limited to,disclosure of information and compliance with earnings assignment orders,as provided in Chapter 8(commencing with Section 5200)of Part 5 of Division 9 of the Family Code;and b. The Grantee,to the best of its knowledge, is fully complying with the earnings assignment orders of all employees,and is providing the names of all new employees to the New Hire Registry maintained by the California Revised 5/7/08—Entitlement T's&C's 3 081 Employment Development Department. • 12.COMMUNICATIONS All communications from the Grantee to the CIWMB shall be directed to the Grant Manager.All notices, including reports and payment requests,required by this Agreement shall be given in writing by E-mail, letter, or FAX to the Grant Manager as identified in Exhibit B—Procedures and Requirements. If an original document is required,prepaid mail or personal delivery to the Grant Manager is required following the E-mail or FAX. 13. COMPETITIVE The CIWMB encourages Grantees to use a competitive bidding process or to BIDDING require and maintain on file a written justification for any exceptions thereto, when contracting for services required under this Agreement. 14. COMPLIANCE The Grantee shall comply fully with all applicable federal,state,and local laws, ordinances,regulations,and permits. The Grantee shall provide evidence, upon request,that all local,state, and/or federal permits, licenses, registrations,and approvals have been secured for the purposes for which grant funds are to be expended.The Grantee shall maintain compliance with such requirements throughout the grant period. The Grantee shall ensure that the requirements of the California Environmental Quality Act are met for any approvals or other requirements necessary to carry out the terms of this Agreement. Any deviation from the requirements of this section shall result in non-payment of grant funds. 15.CONFLICT OF The Grantee needs to be aware of the following provisions regarding current or INTEREST former state employees. If the Grantee has any questions on the status of any person rendering services or involved with this Agreement,the CIWMB must be contacted immediately for clarification. Current State Employees(Public Contracts Code(PCC)§10410): a. No officer or employee shall engage in any employment,activity,or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity,or enterprise is required as a condition of regular state employment. b. No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services. Former State Employees(FCC§10411): a. For the two-year period from the date he or she left state employment,no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations,transactions,planning,arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. b. For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the twelve month period prior to his or her leaving state service. If the Grantee violates any provisions of above paragraphs,such action by the Grantee shall render this Agreement void. (PCC § 10420). Revised 5/7/08—Entitlement T's&C's 4 082 16.CONTRACTORS! Contractor: A person or entity that contracts with the Grantee to perform eighty SUBCONTRACTORS/ percent(80%)or more of the work required by this Agreement, including,but VENDORS— not limited to, any requirements imposed by the CIWMB. DEFINITIONS Subcontractor; A person or entity that contracts with the Grantee or Contractor to perform a portion(less than eighty percent[80%])of the work required by this Agreement,including,but not limited to, any requirements imposed by the CIWMB. Vendor: A person or entity that contracts to sell goods;the sale of services is expressly excluded from this definition. 17.CONTRACTORS/ The Grantee will be entitled to make use of its own staff and such contractors SUBCONTRACTORS and subcontractors as are mutually acceptable to the Grantee and the CIWMB. Any change in contractors or subcontractors must be mutually acceptable to the parties. Immediately upon termination of any such contract or subcontract,the Grantee shall notify the Grant Manager. Nothing contained in this Agreement or otherwise,shall create any contractual relation between the CIWMB and any contractors or subcontractors of Grantee, and no agreement with contractors or subcontractors shall relieve the Grantee of its responsibilities and obligations hereunder. The Grantee agrees to be as fully responsible to the CIWMB for the acts and omissions of its contractors and subcontractors and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the Grantee. The Grantee's obligation to pay its contractors and subcontractors is an independent obligation from the CIWMB's obligation to make payments to the Grantee. As a result,the CIWMB shall have no obligation to pay or to enforce the payment of any moneys to any contractor or subcontractor. 18.COPYRIGHTS AND a. To the extent the Grantee shall have the legal right to do so, Grantee TRADEMARKS shall assign to the CIWMB any and all rights,title,and interests to any copyrightable material or trademarkable material created or developed in whole or in any part as a result of this Agreement,but which originated from previously copyrighted or trademarked material. With respect to all other copyrightable and trademarkable materials,the CIWMB shall retain any and all rights,title and interests to any copyrightable material or trademarkable material created or developed in whole or in any part as a result of this Agreement. These rights, both assigned and retained, shall include the right to register for copyright or trademark of such materials. Grantee shall require that its contractors and subcontractors agree that all such materials shall be the property of the CIWMB. The Grantee is responsible for obtaining any necessary licenses,permissions, releases or authorizations to use text,images or other materials owned, copyrighted or trademarked by third parties and for assigning such licenses,permissions,releases,or authorizations to the CIWMB pursuant to this section. Copies of any licenses,permissions,releases or authorizations obtained pursuant for the use of text, images or other materials owned,copyrighted or trademarked by third parties shall be provided to the Grant Manager. Under unusual and very limited circumstances,where to do so would not conflict with the rights of the CIWMB and would serve the public interest,upon written request by the Grantee,the CIWMB may give,at the Executive Director's sole discretion, written consent to the Grantee to retain all or any part of the Revised 5/7/08—Entitlement T's&C's 5 083 ownership of these rights. b. The CIWMB hereby grants to the Grantee a royalty-free,nonexclusive, nontransferable world-widelicense to reproduce,translate, and distribute copies of the copyrightable materials produced pursuant this Agreement, for nonprofit,non-commercial purposes,and to have or permit others to do so on the Grantee's behalf. This license is limited to the copyrightable materials produced pursuant to this Agreement and does not extend to any materials capable of being trademarked. The following shall appear on all intellectual property used by Contractor pursuant to this license,solely for the purpose of protecting the CIWMB's intellectual property rights therein: "C (year of creation) by the California Integrated Waste Management Board(CIWMB).Used pursuant to license granted by CIWMB.All rights reserved.This publication,or parts thereof, may not be reproduced without permission." 19. CORPORATION When work under this Agreement is to be performed in California by a QUALIFIED DOING corporation,the corporation shall be in good standing and currently qualified to BUSINESS IN do business in the State."Doing business" is defined in Revenue and Taxation CALIFORNIA Code Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. 20.DISCLAIMER OF The CIWMB makes no warranties,express or implied, including without WARRANTY limitation,the implied warranties of merchantability and fitness for a particular purpose,regarding the materials,equipment,services or products purchased, used, obtained and/or produced with funds awarded under this Agreement, whether such materials,equipment, services or products are purchased,used, obtained and/or produced alone or in combination with other materials, equipment,services or products. No CIWMB employees or agents have any right or authority to make any other representation,warranty or promise with respect to any materials, equipment, services or products,purchased, used, obtained, or produced with grant funds. In no event shall the CIWMB be liable for special, incidental or consequential damages arising from the use, sale or distribution of any materials,equipment,services or products purchased or produced with grant funds awarded under this Agreement. 21. DISCRETIONARY The Executive Director shall have the right to terminate this Agreement at his or TERMINATION her sole discretion at any time upon thirty(30)days written notice to the Grantee. Within forty-five(45)days of receipt of written notice, Grantee is required to: a. Submit a final written report describing all work performed by the Grantee; b. Submit an accounting of all grant funds expended up to and including the date of termination;and, c. Reimburse the CIWMB for any unspent funds. 22. DISPUTES Unless otherwise instructed by the Grant Manager,the Grantee shall continue with its responsibilities under this Agreement during any dispute. 23. DRUG-FREE The person signing this Agreement on behalf of the Grantee certifies under WORKPLACE penalty of perjury under the laws of California,that the Grantee will comply with CERTIFICATION the requirements of the Drug-Free Workplace Act of 1990 (GC §8350 et seq.) and will provide a drug-free workplace by taking the following actions: Revised 5/7/08—Entitlement T's&C's 6 084 a. Publish a statement notifying employees that unlawful manufacture, distribution,dispensation,possession or use of a controlled substance is prohibited and specifying actions that will be taken against employees for violations. b. Establish a drug-free awareness program to inform employees about all of the following: (1)the dangers of drug abuse in the workplace,(2)the Grantee's policy of maintaining a drug-free workplace,(3)any available counseling,rehabilitation,and employee assistance programs, and(4) penalties that may be imposed upon employees for drug abuse violations. c. Require that each employee who works on the grant: (1)receive a copy of the drug-free policy statement of the Grantee,and(2)agrees to abide by the terms of such statement as a condition of employment on the grant. 24. EFFECTIVENESS OF This Agreement is of no force or effect until signed by both parties. AGREEMENT 25. ENTIRE This Agreement supersedes all prior agreements,oral or written,made with AGREEMENT respect to the subject hereof and,together with all attachments hereto,contains the entire Agreement of the parties. 26. ENVIRONMENTAL In the performance of this Agreement,the Grantee shall conduct its programs, JUSTICE policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races,cultures,and income levels, including minority populations and low-income populations of the State. 27. FAILURE TO The CIWMB will benefit from the Grantee's full compliance with the terms of PERFORM AS this Agreement only by the Grantee's: REQUIRED BY THIS a. Investigation and/or application of technologies,processes,and devices AGREEMENT which support reduction,reuse,and/or recycling of wastes;or b. Cleanup of the environment;or c. Enforcement of solid waste statutes and regulations,as applicable. Therefore,the Grantee shall be in compliance with this Agreement only if the work it performs results in: a. Application of information,a process, usable data or a product which can be used to aid in reduction,reuse,and/or recycling of waste;or b. The cleanup of the environment;or c. The enforcement of solid waste statutes and regulations,as applicable. If the Grant Manager determines that the Grantee has not complied with the Grant Agreement, the Grantee may forfeit the right to reimbursement of any grant funds not already paid by the CIWMB,including,but not limited to,the ten percent(10%)withhold. 28. FORCE MAJEURE Neither the CIWMB nor the Grantee, its contractors,vendors, or subcontractors, if any, shall be responsible hereunder for any delay,default,or nonperformance of this Agreement,to the extent that such delay,default,or nonperformance is caused by an act of God,weather,accident, labor strike,fire,explosion,riot, war, Revised 5/7/08—Entitlement T's&C's 7 085 rebellion,sabotage,flood,or other contingencies unforeseen by the CIWMB or the Grantee, its contractors,vendors,or subcontractors,and beyond the reasonable control of such party. 29. FORFEIT OF GRANT If grant funds are not expended,or have not been expended, in accordance with FUNDS/REPAYMENT OF this Agreement,or if real or personal property acquired with grant funds is not FUNDS IMPROPERLY being used, or has not been used, for grant purposes in accordance with this EXPENDED Agreement,the Executive Director, at his or her sole discretion, may take appropriate action under this Agreement, at law or in equity, including requiring the Grantee to forfeit the unexpended portion of the grant funds, including, but not limited to,the ten percent(10%)withhold,and/or to repay to the CIWMB any funds improperly expended. 30. GENERALLY The Grantee is required to use Generally Accepted Accounting Principles in ACCEPTED documenting all grant expenditures. ACCOUNTING PRINCIPLES 31.GRANT MANAGER'S The Grant Manager does not have the authority to approve any deviation from or AUTHORITY revision to the Terms and Conditions(Exhibit A)or the Procedures and Requirements(Exhibit B), unless such authority is expressly stated in the Procedures and Requirements(Exhibit B). 32. GRANTEE The Grantee is ultimately responsible and accountable for the manner in which ACCOUNTABILITY the grant funds are utilized and accounted for and the way the grant is administered,even if the Grantee has contracted with another organization, public or private,to administer or operate its grant program. In the event an audit should determine that grant funds are owed to the CIWMB,the Grantee is responsible for repayment of the funds to the CIWMB. 33.GRANTEE'S The Grantee agrees to indemnify, defend and save harmless the State and INDEMNIFICATION AND the CIWMB, and their officers,agents and employees from any and all DEFENSE OF THE claims and losses accruingor resultingto anyand all contractors, STATE subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement,and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the Grantee in the performance of this Agreement. 34. GRANTEE'S NAME A written amendment is required to change the Grantee's name as listed on this CHANGE Agreement. Upon receipt of legal documentation of the name change,the CIWMB will process the amendment.Payment of Payment Requests presented with a new name cannot be paid prior to approval of the amendment. 35. NO AGENCY The Grantee and the agents and employees of Grantee, in the performance of this RELATIONSHIP Agreement,shall act in an independent capacity and not as officers or employees CREATED/ or agents of the CIWMB. INDEPENDENT CAPACITY Revised 5/7/08—Entitlement T's&C's 8 086 36. NO WIAIVER OF The CIWMB shall not be deemed to have waived any rights under this RIGHTS Agreement unless such waiver is given in writing and signed by the CIWMB. No delay or omission on the part of the CIWMB in exercising any rights shall operate as a waiver of such right or any other right. A waiver by the CIWMB of a provision of this Agreement shall not prejudice or constitute a waiver of the CIWMB's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by the CIWMB,nor any course of dealing between CIWMB and Grantee, shall constitute a waiver of any of CIWMB's rights or of any of Grantee's obligations as to any future transactions. Whenever the consent of the CIWMB is required under this Agreement,the granting of such consent by the CIWMB in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of the CIWMB. 37.NON- During the performance of this Agreement, Grantee and its contractors shall not DISCRIMINATION unlawfully discriminate,harass, or allow harassment against any employee or CLAUSE applicant for employment on the bases enumerated in Government Code§§ 12900 et seq. 38. OWNERSHIP OF The State shall have separate and independent ownership of all drawings,design DRAWINGS, PLANS, plans,specifications,notebooks,tracings, photographs,negatives,reports, AND SPECIFICATIONS findings,recommendations, data,software,and memoranda of every description or any part thereof,paid for in whole or in any part with grant funds. Copies thereof shall be delivered to the CIWMB upon request. Grantee agrees,and shall require that its contractors,subcontractors,and vendors agree that the State shall have the full right to use said copies in any manner when and where it may determine without any claim to additional compensation. 39. PATENTS The Grantee assigns to the CIWMB all rights,title,and interest in and to each invention or discovery that may be capable of being patented,that is conceived of or first actually reduced to practice in the course of or under this Agreement, or with the use of any grant funds. Such assignment shall include assignment of any patents registered with the United States Patent and Trademark Office. Grantee further agrees to cooperate with and assist the CIWMB in the preparation of any patent application. Under certain unusual and very limited circumstance,where to do so would not conflict with the rights of the CIWMB and would serve the public interest,upon written request by the Grantee,the CIWMB may give,at the Executive Director's sole discretion,written consent to the Grantee to retain all or any part of the ownership of these rights. a. Upon execution of this Agreement by both parties,the CIWMB may 40. PAYMENT advance grant funds to Grantee provided that Grantee, in the sole discretion of the Executive Director,qualifies for such advance payment and has satisfactorily complied with the applicable requirements contained in this Grant Agreement Package. The CIWMB may elect not to advance payment if Grantee has not satisfactorily complied with the applicable terms and conditions of previous grants and/or does not meet other threshold requirements identified in the Procedures and Requirements(Exhibit B). b. All expenditures must be directly related to the tasks identified in the Procedures and Requirements(Exhibit B). c. Upon receipt of grant funds,the Grantee shall deposit and maintain until expended all grant funds in an interest bearing account in a federally insured Revised 5/7/08—Entitlement T's&C's 9 087 financial institution All interest accrued and received from this account must be used for eligible expenses related to the performance of this Agreement. Interest funds must be accounted for in all grant reports.All unused interest funds must be returned to the CIWMB at the end of the grant term. d. Ten percent(10%)will be withheld from'each Payment Request and paid at the end of the grant term, when all reports and conditions stipulated in this Agreement have been satisfactorily completed. e. Lodgings,Meals and Incidentals:Unless otherwise provided for in this Agreement, Grantee's Per Diem eligible costs are limited to the amounts authorized in the California State Administrative Manual(contact your Grant Manager for more information). f. Payment will be made only to the Grantee. g. Reimbursable expenses shall not be incurred unless and until the Grantee receives a Notice to Proceed as described in Exhibit B. 41.PERSONNEL COSTS If there are eligible costs pursuant to Exhibit B,Procedures and Requirements, any personnel expenditures to be reimbursed with grant funds must be computed based on actual time spent on grant-related activities and on the actual salary or equivalent hourly wage the employee is paid for his or her regular job duties, including a proportionate share of any benefits to which the employee is entitled, unless otherwise specified in the Procedures and Requirements(Exhibit B). 42. REAL AND a. All real and personal property,including equipment and supplies,acquired PERSONAL PROPERTY with grant funds shall be used by the Grantee only for the purposes for which ACQUIRED WITH GRANT the CIWMB approved their acquisition for so long as such property is FUNDS needed for such purposes,regardless of whether the Grantee continues to receive grant funds from the CIWMB for such purposes. In no event shall the length of time during which such property, including equipment and supplies,acquired with grant funds, is used for the purpose for which the CIWMB approved its acquisition be less than five(5)years after the end of the grant term, during which time the property,including equipment and supplies,must remain in the State of California. b. Subject to the obligations and conditions set forth in this section,title to all real and personal property acquired with grant funds, including all equipment and supplies, shall vest upon acquisition in the Grantee. The Grantee shall execute all documents required to provide the CIWMB with a purchase money security interest in any real or personal property, including equipment and supplies,and it shall be a condition of receiving this grant that the CIWMB shall be in first priority position with respect to the purchase money security interest on any such property acquired with the grant funds,unless pre-approved in writing by the Grant Manager that the CIWMB will accept a lower priority position with respect to the purchase money security interest on the property. Grantee shall inform any lender(s) from whom it is acquiring additional funding to complete the property purchase of this grant condition, c. The Grantee may not transfer Title to any real or personal property,including equipment and supplies,acquired with grant funds to any other entity without the express authorization of the CIWMB. d. The CIWMB will not reimburse the Grantee for the acquisition of equipment that was previously purchased with CIWMB grant funds,unless the acquisition of such equipment with grant funds is pre-approved in writing by the Grant Manager. In the event of a question concerning the eligibility of Revised 5/7/08—Entitlement T's&C's 10 088 equipment for grant funding,the burden will be on the Grantee to establish the pedigree of the equipment. 43. RECYCLED- The Grantee shall certify the minimum, if not the exact,percentage of CONTENT postconsumer and secondary material in the products,materials,goods,and CERTIFICATION supplies purchased with grant funds. This certification shall be provided to the CIWMB on the Recycled Content Certification Form(CIWMB 74G)available at www.civymb.ca.gov/Grants/Forms/CIWMB074.pdf. 44. RECYCLED- All documents submitted by the Grantee must be printed double-sided on CONTENT PAPER recycled-content paper containing one hundred percent(100%)post-consumer fiber. Specific pages containing photographs or other ink-intensive graphics may be printed on photographic paper. 45. RECYCLED- In the performance of this Agreement, for purchases made with grant funds,the CONTENT PRODUCT Grantee shall purchase recycled-content products(RCP),as defined by the State PROCUREMENT Agency Buy Recycled Campaign(SABRC)minimum recycled content requirements see www.ciwmb.ca.gov/BuyRecycled/StateAgency/. If the Grantee cannot purchase RCPs,the Grantee must document why it was unable to comply with this requirement and request written pre-approval from its Grant Manager to deviate from this policy.. 46. REDUCTION OF In the performance of this Agreement,Grantee shall take all reasonable steps to WASTE ensure that materials purchased or utilized in the course of the project are not wasted. Steps should include, but not be limited to:the use of used, reusable, or recyclable products;discretion in the amount of materials used;alternatives to disposal of materials consumed; and the practice of other waste reduction measures where feasible and appropriate. 47. REDUCTION OF Unless otherwise provided for in this Agreement, in the performance of this WASTE TIRES Agreement,for all purchases made with grant funds, including,but not limited to, equipment and tire-derived feedstock,the Grantee shall purchase and/or process only California waste tires and California waste tire-derived products. As a condition of final payment under this Agreement,the Grantee must provide documentation substantiating the source of the tire materials used during the performance of this Agreement to the Grant Manager. 48. REMEDIES Unless otherwise expressly provided herein,the rights and remedies hereunder are in addition to,and not in limitation of, other rights and remedies under this Agreement,at law or in equity,and exercise of one right or remedy shall not be deemed a waiver of any other right or remedy. 49. RESOLUTION A county, city,district, or other local public body must provide the CIWMB with a copy of a resolution,order,motion, or ordinance of the local governing body, which by law has authority to enter into an agreement,authorizing execution of this Agreement and designating the job title of the individual authorized to sign on behalf of the local public body. Revised 5/7/08—Entitlement T's&C's 11 089 50.SELF ASSESSMENT The Grantee shall submit with its Final Report a completed and signed Self CHECKLIST Assessment Checklist form, which is designed to aid the Grantee and the CIWMB in measuring compliance with grant administrative requirements. 5f.SEVERABILITY If any provisions of this Agreement are found to be unlawful or unenforceable, such provisions will be voided and severed from this Agreement without affecting any other provision of this Agreement. To the full extent, however,that the provisions of such applicable law may be waived,they are hereby waived to the end that this Agreement be deemed to be a valid and binding agreement enforceable in accordance with its terms. 52.SITE ACCESS The Grantee shall allow the State to inspect sites at which grant funds are expended and related work being performed at any time during the performance of the work and for ninety(90)days after completion of the work, or until all issues related to the grant project have been resolved. 53.STOP WORK Immediately upon receipt of a written notice from the Grant Manager to stop NOTICE work,the Grantee shall cease all work under this Agreement. a. All Grantees contracting for the procurement or laundering of apparel, 54.SWEATFREE CODE garments or corresponding accessories,or the procurement of equipment, OF CONDUCT materials, or supplies,other than procurement related to a public works contract,declare under penalty of perjury that no apparel,garments or corresponding accessories,equipment, materials,or supplies obtained with Grant funds have been laundered or produced in whole or in part by sweatshop labor,forced labor,convict labor,indentured labor under penal sanction,abusive forms of child labor or exploitation of children in sweatshop labor,or with the benefit of sweatshop labor,forced labor,convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children insweatshop labor. The Grantee further declares under penalty of perjury that it adheres to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov,and Public Contract Code Section 6108, b. The Grantee agrees to cooperate fully in providing reasonable access to the Grantee's records,documents,agents or employees,or premises if reasonably required by authorized officials of the CIWMB or its agents,the Department of Industrial Relations,or the Department of Justice to determine the Grantee's compliance with the requirements under paragraph (a). 55.TERMINATION FOR The CIWMB may terminate this Agreement and be relieved of any payments CAUSE should the Grantee fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination,the CIWMB may proceed with the work in any manner deemed proper by the CIWMB. All costs to the CIWMB shall be deducted from any sum due the Grantee under this Agreement. Termination pursuant to this section may result in forfeiture by the Grantee of any funds retained pursuant to the CIWMB's ten percent(10%)retention policy. Revised 5/7/08—Entitlement T's&C's 12 090 56.THE IS OF THE Time is of the essence of this Agreement. ESSENCE 57.TOLLING OF The statute of limitations for bringing any action, administrative or civil,to STATUTE OF enforce the terms of this Agreement or to recover any amounts determined to be UMITATIONS owing to the CIWMB as the result of any audit of the grant covered by this Agreement shall be tolled during the period of any audit resolution,including any appeals by the Grantee to the Executive Director and/or the Board. 58. UNION ORGANIZING By signing this Agreement,the Grantee hereby acknowledges the applicability of Government Code§§ 16645, 16645.2, 16645.8, 16646, 16647,and 16648 to this Agreement and hereby certifies that: a. No grant funds disbursed by this grant will be used to assist,promote,or deter union organizing by employees performing work under this Agreement. b. If the Grantee makes expenditures to assist,promote,or deter union organizing,the Grantee will maintain records sufficient to show that no state funds were used for those expenditures, and that Grantee shall provide those records to the Attorney General upon request. 59.UNRELIABLE LIST Prior to authorizing a contractor(s)to commence work under this Grant,the Grantee shall submit to the CIWMB a declaration from the contractor(s),signed under penalty of perjury,stating that within the preceding three(3)years,none of the events listed in Section 17050 of Title 14,California Code of Regulations, Natural Resources,Division 7,has occurred with respect to the contractor(s). See www.ciwrnb.ca.gov/Regulations/Title14/chl.htmtichla5. If a contractor is placed on the CIWMB Unreliable List after award of this Grant,the Grantee may be required to terminate that contract. 60.VENUE/CHOICE OF a. All proceedings concerning the validity and operation of this Agreement and LAW the performance of the obligations imposed upon the parties hereunder shall be held in Sacramento County,California. The parties hereby waive any right to any other venue. The place where the Agreement is entered into and place where the obligation is incurred is Sacramento County,California. b. The laws of the State of California shall govern all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder. 61.WAIVER OF CLAIMS The Grantee agrees to waive all claims and recourse against the State,its AND RECOURSE officials, officers,agents,employees,and servants, including, but not limited to, AGAINST THE STATE the right to contribution for loss or damage to persons or property arising out of, resulting from, or in any way connected with or incident to this Agreement. This waiver extends to any loss incurred attributable to any activity undertaken or omitted pursuant to this Agreement or any product, structure, or condition created pursuant to,or as a result of,this Agreement. 62.WORK PRODUCTS The Grantee must provide the CIWMB with copies of all printed materials and photographs of all other final products paid for with Grant funds. Physical copies of the final product shall be provided upon request of the Grant Manager. Revised 5/7/08—Entitlement T's&C's 13 091 63.WORKERS' The Grantee is aware of Labor Code section 3700,which requires every COMPENSATION/LABOR employer to be insured against liability for Worker's Compensation or to CODE undertake self-insurance in accordance with the Labor Code, and the Grantee affirms to comply with such provisions before commencing the performance of the work of this Agreement. Revised 5/7/08—Entitlement T's&C's 14 092 EXHIBIT B PROCEDURES AND REQUIREMENTS Used Oil Recycling Block Grant(14th Cycle)for FY 2008/09 Copies of these Procedures and Requirements should be shared with BOTH the Finance Department AND the staff responsible for implementing the grant activities. General Information These Procedures and Requirements of the California Integrated Waste Management Board's (CIWMB) Used Oil Recycling Block Grant Agreement describe project and reporting requirements, report due dates, report contents, grant payment conditions, eligible and ineligible project costs, publicity, education and copyright requirements, supporting documentation for all expenditures, overhead/indi rect costs, projects completion and close-out procedures, records and audit require ments. Questions? All communication regarding this grant should be directed to your CIWMB Grant Manager unless otherwise specifically stated. To find the name and telephone number of your CIWMB Grant Manager, refer to www.ciwmb.ca.qov/HHW/Grants/Contacts.htm. The Grantee may also call the Financial Assistance Division, Grant and Loan Resources Branch at(916)341-64 57. Important Dates July 1, 2008— Grant Term for Used Oil Block Grant, 14th Cycle August 15, 2011 (UBG14) July 1, 2008— Grant Performance Period June 30, 2011 August 15, 2009 Annual Report Due August 15, 2010 Annual Report Due June 30, 2011 Grant Performance Period Ends July 1, 2011 — Report Preparation Period August 15, 2011 August 15, 2011 Grant Term Ends and Final Report Due Grant Performance The Grant Performance Period begins on July 1,2008, at which time eligible Period, Grant Term grant expenditures for UBG14 may start(subject to the Procedures and and Report Requirements and Terms and Conditions of UBG13, until such time as the Preparation Period UBG14 Grant Agreement became effective). In all cases, all eligible UBG14 program costs must be incurred no later than June 30, 2011. The Grant Term starts on the same date as the Grant Performance Period and ends on August 15, 2011, the date the Final Report is due to the CIWMB. The period between July 1, 2011 and August 15, 2011, is ref erred to as the Report Preparation Period. Costs incurred to prepare the Final Report and Final 1 093 Payment Request, if any, are the only costs that are eligible for reimbursement during the Report Preparation P eriod. NOTE THAT ALL REPORT PREPARATION COSTS MUST BE INCURRED PRIOR TO THE END OF THE GRANT TERM (AUGUST 15, 2011)TO BE ELIGIBLE FOR REIMBURSEMENT UNDER UBG14 AND THAT THEY WILL NOT BE ELIGIBLE FOR REIMBURSEMENT UNDER ANY OTHER UBG CYCLE. THEREFORE, NO EXTENSIONS FOR SUBMITTAL OF THE FINAL REPORT WILL BE GRANTED. Prior To Commencing Grant Self-Assessment Form and other Grant Forms Work Prior to commencing work under this Grant, the Grantee's Grant M anager and authorized Signature Authority should review the Grant Self Assessment Checklist Form, and other Grant Forms, so as to identify key administrative requirements. Evaluation of the Grantee's compliance with these requirements is a major part of all Grant audits. As set forth more fully in the Terms and Conditions(Exhibit A), the Grantee shall submit with its Final Report a completed and signed S elf-Assessment Form. To obtain the Grant Self-Assessment Form (CIWMB 641), contact the CIWMB Grant Manager, or go to http://www.ciwmb.ca.gov/Grants/Forms/. Reliable Contractor Declaration Prior to authorizing a contractor(s)to commence work under this Grant, the Grantee shall submit to the CIWMB Grant Manager a declaration from the contractor(s), signed under penalty of perjury, stating that within the preceding three(3) years, none of the events listed in Section 17050 of Title 14, California Code of Regulations, Natural Resources, Division 7, has occurred with respect to the contractor(s) and the subcontractor(s), respectively. See www.ciwmb.ca.dov/Regulations/Titlet4/ch1.htm#ch1a5 to read the referenced Section of Title 14. Where To Send Send Reports, Grant Payment Requests, and all other written correspondence Reports, Payment to your CIWMB Grant Manager's attention at: Requests,etc. California Integrated Waste Management Board Financial Assistance Division Grant and Loan Resources B ranch—MS#9A. P.O. Box 4025, 1001 "I" Street Sacramento, CA. 95812-4025 Attn: (your CIWMB Grant Manager's name) General Requirements Grantees must meet the minimum requirements at the beginning of the grant cycle to be eligible to expend funds. Eligibility includes having at least one Certified Collection Center(CCC) per 100,000 residents of the jurisdiction or a curbside collection program which includes used oil collection. Grantees, or their subcontractors or consultants, must possess or acquire all applicable agreements/permits necessary to carry out the activities funded by the UBG and a copy or c opies must be available for 2 094 review upon request. The Grantee is responsible to ensure that subcontractors who administer and/or implement the grant on behalf of the Grantee comply with the Grant Agreement. UBG14 applicants who miss the June 30, 2008 application subm ission date or who miss the July 31, 2008 date for submission of local government resolutions will not be eligible for UBG14 but will retain their eligibility for subsequent UBGs if they submit an annual report for all other UBGs that is approved by the CIWMB Grant Manager by the report deadline. Grantees who are invoiced for outstanding UBG funds may apply for UBGs and competitive grants, but any grants awarded will not be funded unless any outstanding invoices are paid within 90 days of the date the Board awards the grant. Annual Site Visits Annual site visits to the Grantee's CCC s are a grant requirement during each fiscal year. Grantees must visit at least one CCC per 100,000 population. Please submit site visit forms (CIWMB 664 or CIWMB 665)as soon as completed,to your CIWMB Grant Manager. Unless previously submitted within the current fiscal year, these forms must be submitted with the Annual Report. Grant Expenditures All expenditures must be incurred,and payment made,with services provided and goods received during the Grant Performance Period,July 1, 2008—June 30,2011. • The Grantee must spend all of the available funds from the oldest UBG prior to spending any funds from more recent UBGs. For example, utilize all funds from the 13'h cycle grant before showing any 14th cycle expenses on the Expenditure Itemization Summary (EIS). • It is acceptable to split an invoice across two separate UBG cycles in order to"zero out" all funds in the oldest UBG before using funds from a more recent UBG. Expenditures Expenditures associated with the tasks or products listed below must be Requiring Grant approved in writing by the CIWMB Grant Manager prior to purchase or Manager Approval production. Please retain all approvals for audit purposes. Items not pre- approved MAY NOT be an eligible expenditure and payment may be denied. Allow at least five(5)working days for approval of the following items: • Premiums if the per item cost exceeds six dollars ($6, not including sales tax) • All television,video, and radio scripts • Storm water mitigation (refer to section below for details) • School presentations(subm it script and presentation purpose) • Equipment, vehicles, and trailers • Purchase of re-refined oil for non-fleet promotion and distribution. CIWMB Grant Managers will ask grantees to demonstrate the following before making a decision regarding approval: 3 095 o Confirm the availability of re-refined oil for sale in their community. o Provide information to the public on where to purchase the product. • Web-page developm ent • Computer equipment and software • Travel expenses except for CIWMB-sponsored and/or co-spo nsored Information Exchanges, conferences and workshops • Financial incentives(includes: sponsorships, stipends, etc.) • Planning, background,or feasibility studies • Audit expenses for UBG and Opportunity Grant cycles. Time and funds related to the audit should be described in the current UBG EIS and must be for an audit of specific cycle(s)of the UBG and/or Opportunity Grant conducted by the CIWMB, California Department of Finance and/or California State Controller's Office. Expenses for audits of the Grantee's entire organization, or portions thereof, which include a review of one or more UBG and/or Opportunity Grant cycles are not eligible for reimbursement. • Certified Unified Program Agency (CUPA) inspection fees of Certified and Non-Certified Used Oil Collection Centers with service bays (used oil is generated as part of business operations). CU PA inspection fees reimbursement must be proportionally related to the percentage of do-it- yourself(vs. do-it-for-me) used oil generated at the business. Pre-Approved The expenditures listed below DO NOT have to be pre-approved by the Expenditures CIWMB Grant Manager if they are related to the establishment, maintenance, or enhancement of used oil and used oil filter collection programs: • Travel expenses for CIWMB-sponsored and/or co-sponsored Information Exchanges, state conferences and workshops • Used oil collection o Used oil and used oil filter collection (includes curbside and door-to- door) o Certified and non-certified used oil collection center support o Used oil collection through Household Hazardous Waste(HHW) Programs, including transportation costs of used oil o CUPA inspection fees of non-service bay (used oil is not generated as part of business operations) Certified and Non-Certified Used Oil Collection Centers. o Set up and operation of temporary facilities for one-day or multi-day HHW collection events where used oil will be accepted o Hazardous Waste Operations and Emergency Response Standard (HAZWOPER) 8-hour refresher training course for personnel who are directly involved with used oil and HHW collection o Agricultural used oil collection projects o Marina used oil collection projects o Airport used oil collection projects o Construction of Permanent HHW Collection Facility and Antifreeze, Battery, Oil, and Paint Facility(ABOP)where used oil is accepted— permanent features, used oil-related equipment and supplies are eligible • Re-Refined Oil use for public fleets o Cost differential between re-refined and virgin oil 4 096 o Re-refined oil promotion for fleet managers • Publicity and education materials o Purchase and distribution of used oil containers, funnels, shop rags, coupons o Other premiums whose cost is less than$6.00 and directly relate to and/or will be used for used oil and used oil filter collection and recycling needs and/or will be clearly linked to behavioral change that leads to an increase in used oil and used oil filter recycling. • Personnel costs for used oil/used oil filter recycling activities o Training costs directly related to used oil/used oil filter recycling activities • Load checking projects related to the identification of used oil • Indirect or Overhead Costs that do not exceed 10% of the grant funds reimbursed and are supported with a cost-allocation plan Storm Water Since January 2002, some storm water mitigation expenditures are Expenses considered eligible expenses. S torm water mitigation is defined in Public Resources Code Section 48618.4 to include"...the prevention of storm water pollution from used oil and oil byproducts and the reduction or alleviation of the effect of storm water pollution from used oil and oil byproducts by means of action taken on public property. Mitigation includes the installation of devices and implementation of practices that prevent used oil and of I byproducts from causing storm water pollution. Mitigation does not include the cleanup or restoration of polluted areas". • Storm water expenses may not exceed 50% of the UBG award. • All related storm water expenses such as personnel, publicity and education, stenciling, and storm water filter purchase/maintenance is counted towards the 50% cap. • To be eligible, each jurisdiction must self-certify that it has a storm water mitigation program that has been approved by its local Regional Water Quality Control Board. • All storm water expenses must be accounted for and reported on the Expenditure Itemization Summary. The following types of storm drain filters (inserts; debris screens)are eligible: • A debris screen that covers the opening to the st orm drain inlet. Regular municipal street-sweeping must occur where debris screens are installed; • A catch basin (street side) inlet insert that does not contain oil absorbent media; • A catch basin inlet insert that does contain oil absorbent media plus a debris screen that covers the opening to the stor m drain inlet. (The debris screen prevents debris and sediment from entering the storm drain and obstructing the oil absorbent media.); • A vertical drop-in parking lot inlet insert that does contain oil absorbent media(must be covered by a grate or debris screen). Note: Periodic clean-out of catch basin inlet inserts and replacement of their 5 097 oil-absorbent media are eligible for grant funding. However, street sweeping, parking lot cleaning, and clean-out of catch basin inlets without inserts are not eligible for grant funding. Ineligible Any expenditure that does not supp ort the implementation of used oil and Expenditures used oil filter collection programs is ineligible for UBG funding. The activities, products, or expenditures listed below are specifically identified as ineligible. The ineligible expenditures incl ude, but are not limited to: • Costs incurred prior to July 1, 2008, or after June 30,2011 • Costs incurred during the Report Preparation P eriod (July 1,2011 — August 15, 2011),except for the costs incurred to prepare the Final Report and Final Payment Request, if any • Purchasing or leasing of land or buildings • Costs currently covered or incurred by another CIWMB loan, grant, grant cycle or contract • Purchasing of vehicles by non-governmental agencies • Leasing of gasoline-fueled vehicles (including hybrid vehicles) by non- governmental agencies unless pre-approved in writing by your CIWMB Grant Manager • Remediation (any cleanup or restoration of polluted areas) • HAZWOPER 40-hour and 24-hour courses • Enforcement activities • Profit or mark-up by the Grantee • Preparation of Household Hazardous Waste elements (HHWE) • Out-of-state travel • Developing or customizing school curricula • Overtime costs!Compensated Time Off(except for local government staffing during specially scheduled evening or weekend events outside of staffs normal work hours when law or labor contract requires overtime compensation) • Any food or beverages(e.g., as part of meetings,workshops,or events) • Cell phones, pagers, cameras, personal digital assistants, and other similar electronic devices • Movie theater screen advertising • Premiums that contribute to the HHW waste stream • Transportation&disposal of non-oil HHW from any facility or event • Equipment, materials or supplies at HHW or ABOP facilities not directly related to the collection of used oil and used oil filters • Any costs not consistent with local, state, or federal laws, guidelines and regulations • CUPA fines or penalties • Travel expenditures that exceed the state rate (for hotel and meal rates, see www.catravelsmart.com and click on "Lodging Reimbursement Rates"for hotel maximum rates and"DPA Lodging Reimbursement"for Meals and Incidentals and for Personal Vehicle Mileage Reimbursement) • Any personnel costs incurred as a result of time an employee assigned to the project funded by the grant does not work on the project(e.g., 6 098 use of accrued sick leave, accrued vacation,etc.) • Any pre-paid expenditures for future goods or services delivered beyond the end of the Grant Performance Period (Exemption: The CIWMB Grant Manager may consider approving products purchased in full before the end of the Grant Performance Period but delivered after the Grant Performance Period if the delay is caused solely by the supplier, and not by the Grantee. The Grantee must request an exemption in writing and receive written pre-approval from the CIWMB Grant Manager. In no event may products be delivered after the end of the Grant Term.) • •Fines or penalties due to violation of federal,state or local laws, ordinances, or regulations • Costs to maintain an existing HHW program where used oil is not collected • Developing any type of permanent facility on non-local government- owned property, • Expenses for audits of the Grantee's entire organization, or portions thereof that include a review of one or more UBG and/or Opportunity Grant cycles are not eligible for reimbursement • Costs deemed by the CIWMB Grant Manager to be unreasonable or not related to the purpose of the grant. Overhead/Indirect Overhead and indirect costs can be claimed by Grantees. The following Costs guidelines must be used when claiming these costs: • The total cost of overhead and indi rect cost charged to the grant shall not exceed 10% of the grant award amount. These costs are expenditures not capable of being assigned or not readily itemized to a particular project or activity, but considered necessary for the operation of the organization and the performance of the program. The costs of operating and maintaining facilities, accounting services, and adm inistrative salaries are examples of overhead and indirect costs. All overhead and indirect costs charged to the grant must be associated with grant-related activities. If you are uncertain whether a given cost is considered an overhead/indirect cost by the CIWMB, contact your CIWMB Grant Manager. • Direct costs charged directly to the grant shall not be included in the overhead/indirect cost formula. • Supervision performed by Managers and Supervisors can be included in the overhead/indirect cost formula; and therefore, will not be a direct charge to the grant. On the other ha nd, if a Manager or Supervisor performs an activity that is directly related to the execution of the grant(not supervision), costs associated with this activity may be included as a direct charge. Such activity must be clearly supported by appropriate documentation and shall not be charged to the g rant as overhead or indirect cost. 7 . 099 • The Grantee must maintain organized and accurate records that follow generally accepted accounting principles and leave an audit trail. The Grantee must provide access to all documents related to the grant program and fiscal operation of the grant program as deemed necessary by the CIWMB. • The Grantee must have on file an internally approved Cost Allocation Plan which specifically documents how the overhead rate was established and which is supported by formal accounting records to substantiate the charges. The Cost Allocation Plan must be approved by an appropriate Supervisor/Manager in your agency. The Cost Allocation Plan must identify program elements included in the overhead/indirect cost calculation. See the sample"Cost Allocation Plan"calculation listed below: Total department indirect cost divided by total department direct cost base equals the overhead/indirect cost rate. If the Grantee utilizes a contractor to administer and/or implement the grant, then the overhead and in direct costs of such contractor may be charged to the grant only to the extent that such costs could have been charged by the Grantee. Publicity And Premiums must be appropriate for the target audience; durable, and not likely Education to be disposed of in a short time or contribute to the waste stream or Requirements hazardous waste stream (e.g., any item containing batteries, mercury,etc.); and not promoting a particular brand-name products or private businesses. Premiums must directly relate to and/or be used for used oil and used oil filter collection and recycling needs and/or be clearly linked to behavioral change that leads to an increase in used oil and used oil frit er recycling. For all languages other than English,Grantee must work with a person fluent in reading and writing the language. A description of the translator's qualifications, as well as an English version of the material must be submitted with the Final Report. Of key importance is that the tran slated material is at a reading level appropriate for its targeted audience. Materials or items purchased may be denied full reimbursement if they do not meet the requirements detailed in this section. All items/materials, as appropriate, must meet the acknowledgement, advertising/public education, and recy cled-content product requirement as set forth in the Terms and Conditions, and must include the following: a) Acknowledgement of the CIWMB funding and the Board's slogan that reads"Funded by a Grant from the California Integrated Waste Management Board"'. Use of the initials"CIWMB"is not sufficient. Exception: The acknowledgement line is not required on small items (pencils, magnets, etc.) where space constraints would not allow for 8 100 this line or if it would interfere with the message. b) Specific information on used oil/used oil filter recycling/disposal. c) A list of used oil collection centers within the targeted community or a telephone number to call for information on local collection centers. When locations are listed, include the following language: "Call for hours of operation." (Use the 1-800-CLEANUP number[or www.cleanup.org website] if your jurisdiction does not maintain its own 24-hour hotline.)" The"Used Oil Drop"logo with the words"Recycle Used Oil"or"Recycle Used Oil and Used Oil Filters"as appropriate. Copyright The following language must appear on any copyrightable material produced Requirements with CIWMB grant funds: Copyright language:© Copyright(year of creation}by the California Integrated Waste Management Board (CIWMB).All rights reserved. This publication, or parts thereof, may not be reproduced without permission from CIWMB. For copyrightable material produced in Spanish, the following language must appear: ©Copyright{year of creation} California Integrated Waste Management Board (CIWMB). Todos los derechos reservados. Esta publicaciOn, o partes, no puede ser reproducido sin perrniso de CIWMB. Examples of copyrightable material include but are not limited to: • CDs and DVDs of audio and/or visual material • Computer Software • Brochures, pamphlets, and reproductions of advertisements designed for distribution Please check with your CIWMB Grant Manager with specific questions about the applicability of using the copyright language. Combining Used Oil Both storm water and/or HI-IW recycling programs may be incorporated with With Other the used oil recycling message on publicity and education (P&E) items. The Environmental funding level for the P&E portion for these programs will be determined on a Programs case-by-case basis by the CIWMB Grant Manager. To be eligible for any funding, the proposal must meet the minimum requirements for Used Oil P&E, and clearly support all of the key components of the UBG program. Graphics Graphics are available on the CI WMB's website at: www.ciwmb.ca.gov/UsedOil/graphics/default.htm#usedoil.) Use the State colors (blue oil drop on yellow background) on any material produced in four or more colors. (The color designation for professional printing is Yale Blue- Pantone 286C; Golden Yellow-Pantone 123C.) 9 101 777 1 i RECYCLE usEn Ott. , IAA*, ^�1. filt*4 kizij RECYCLE USED lilt FILTERS Recycled-Content All Grantees must report the percentage of recycled-content material for all Product Requirements products purchased in the product categories listed below. Grantees must use a separate Recycled-Content Product Certification Form (CIWMB 74G)for each supplier and submit them with the Final Report. The form can be found on CIWMB's website at: www.ciwmb.ca.qov/HHW/Forms. Paper Products Printing &Writing Paper Plastic Products Compost& Co- Glass Products Lubricating Oils Compost Solvents Tire-Derived Paint Steel Products Products Tires Any exceptions to the above requ irementsmust be pre-approved in writing by the CIWMB Grant Manager. Large Equipment A CIWMB sticker(bumper sticker size)that displays the"used oil drop" log o CIWMB including the text"Recycle Used Oil"and "Funded by a grant from the Acknowledgement California Integrated Waste Management Board"is required to be affixed to all large pieces of equipment purchased with grant funds. When submitting the Final Report,the picture of this equipment should include the affixed sticker. CIWMB has stickers available at no cost which may be requested from your CIWMB Grant Manager. Reporting The Grantee must submit an Annual Report for each year of the approved Requirements grant project, as well as a Final Report which, after approval by the CIWMB Grant Manager,will enable the CIWMB to close the grant and release the 10% withhold. These reports are described below. NOTE: All forms for the following reports can be downloaded from the CIWMB website at:www.ciwmb.ca.gov/HHW/Forms. Annual Reports Grantees are required to submit an Annual Report(CIWMB Form 644)on August 15th of each year demonstrating program progress and how they have spent their UBG funds for the previous fiscal year(July 1 —June 30). Grantees are required to report on each active UBG in a single Annual Report. The report must clearly identify each of the grant cycles and the activities conducted under each cycle. Grantees that do not show progress toward implementation of a used oil and used oil filter collection and education program may not 10 • 102 receive all or part of the UBG allocation for the fiscal year beginning on July 1 of the year in which the Annual Report was submitted. This lack of performance will also be noted if Grantees apply for future Used Oil and/or HH W grants. Grantees will lose eligibility for the current grant cycle which began on July 1 if the grantee fails to submit the completed Annual Report by August 15 or fails to submit a completed report during a grace period determined by the Grant Manager. Grantees will not lose their eligibility for subsequent grant cycles if they submit a completed application during the next cycle's application period and meet the mandates of the Terms and Conditions and the Procedures and Requirements of all previous UBG cycles, including submission of all required completed reports. Grantees will also be required to submit a statement explaining why they missed the Annual Report deadline and what corrective action they have taken to ensure future compliance. The corrective action must meet the approval of the CIWMB Grant Manager. Final Report The Final Report is not required to be submitted on a specific form,but must include all of the information and additional documentation enumerated below. The Final Report covers activities conducted between the last Annual Report and the end of the Grant Performance Period. The Final Report may be submitted early if activities are completed and all funds expended before the end of the Grant Performance Period. Costs incurred for preparation of the Final Report are eligible for reimbursement at any time during the Grant Term; however, during the Report P reparation Period (July 1,2011 —August 15, 2011), costs incurred for preparation of the Final Report and Final Payment Request, if any, are the only costs that are eligible for reimbursement. Grants are not considered closed until all the reporting requirements have been met, all available funding has been expended or returned to the CIWMB, and/or the grant term has expired. If an advance was approved, any unexpended advanced grant funds and/or interest accrued (if applicable) must be returned to the CIWMB or the Grantee will be invoiced by the CIWMB. Note that no extensions will be given for submittal of the Final Report. Additional items to be submitted for the Final Report 1. The last Annual Report Form if grant is completed by June 30 or a summary of activities completed since the last August 15 Annual Report if grant is closed early. The following disclaimer must appear on the cover page of the report: "The statements and conclusions of this report are those of the Grantee and not necessarily those of the C alifornia Integrated Waste Management Board, its employees, or the State of California. The State makes no warranty, express or implied, and assumes no liability for the information contained in the succeeding text." 2. Certified Collection Center Site Visit Checklists (if not submitted earlier) (CIWMB 665) 3. Recycled-Content Product Certification Form (RCP) (CIWMB 74G)li for each item purchased with grant funds(submit a separate form for each supplier). 11 103 • 4. Samples of Premiums and Printed Material a. A digital image of each premium item in a commonly accepted format, and all final printed publicity and education materials. The photographs of the premiums must show compliance with requirements of the grant(i.e. oil logo, "Funded by grant from the California Integrated Waste Management Board". More than one digital image may be submitted if needed to capture all required components or to accurately illustrate the item. If compliance with procedures cannot be clearly captured in a photographic image, then an original copy of the premium item must be submitted. b. A PDF copy of graphics is acceptable. The CIWMB Grant Manager may ask for a copy of the graphic in its original format. c. Two photographs, from different angles, for large items such as equipment or structures. d. A photograph of each event attended or conducted (if not previously submitted). e. For Regional Programs that have developed printed materials (including item 5 below)with grant funds, only the lead agency is required to submit copies of the materials to the CIWMB; and include information as to who other regional participants are. Thus, Grantees participating in the Regional Program are not each required to submit copies of the materials, but each Grantee should reference the Regional Program in its Annual Report. 5. Samples of Final Television, Video and Radio Ads. A final copy of each ad (if not previously submitted) in the appropriate media format(DVD format for videos and CD-Rom for radio ads). FAILURE TO SUBMIT THE REQUIRED ANNUAL REPORTS BY THE SPECIFIED DEADLINES MAY CAUSE THE GRANTEE TO BE INELIGIBLE FOR THE CURRENT UBG CYCLE AND.MAY RESULT IN INVOICING OR TERMINATION OF OTHER OPEN UBG CYCLES. Payments UBG funds will be disbursed on a reimbursement basis,with only the following exceptions: the advance payment option is available for Grantees receiving $20,000 or less; and at the CIW MB Grant Manager's discretion for multi-jurisdictional and regional grantees whose individual jurisdictions would have received $20,000 or less had they applied individually. The CIWMB Grant Manager will consider exceptions to the re imbursement policy for financial hardship situations on a case-by-case basis. Advance Payment Where advance payment has been approved, UBG recipients will receive 90% Option of their UBG award in advance once the Grant Agreem ent is fully executed and a signed Grant Payment Request is submitted. Advancement of funds is conditional upon full repayment of all outstanding UBG funds and interest owed to the CIWMB. 12 104 The Grantee will have to incur eligible costs for the 90% advanced and the interest accrued; or return any unspent advanced funds to the CIWMB. If the Grantee chooses not to incur costs equivalent to the 10% withheld from the overall UBG amount,the CIWMB will retain the 10%withhold and close the grant. If the Grantee incurs costs that cover all or part of the 10%withheld,the CIWMB will reimburse eligible costs. The remaining funds from the overall UBG amount will be released to the Grantee after 100%of grants funds have been expended and the Annual Report has been approved by the CIWMB Grant Manager. Note: CIWMB will formally invoice any unspent advanced grant funds or interest accrued. Interest on Advance Interest earned for,each UBG Cycle advance must be tracked and accounted Payments for separately. Any unused interest accrued must be returned to the CIWMB at the end of the grant term. Grantees should contact their administration and finance office to establish a process to track and report this interest. All grant funds must be placed in an interest-bea ring account with a fully insured financial institution, Any interest accrued and received from this account may only be used after receiving prior written approval from the CIWMB Grant Manager and then may only be used for eligible expenses related to the grant. Interest accrued must be stated on the FINAL EIS only. In cases where grant funds are forwarded directly to a contractor for expenditure,the Grantee is subj ect to the same requirements pertaining to tracking of accrued interest, unless the money is spent by the Grantee within 90 days of issuance of the funds to the Grantee. Therefore,the Grantee is required to impose upon any contractor to which it entrusts advanced grant funds the obligation to comply with the requirements of the Grant Agreement regarding interest. The Grantee is ultimately responsible for all advanced funds and accrued interest thereon. The Grantee is responsible for ensuring that subcontractors who administer and/or implement the grant on behalf of the Grantee comply with the terms of this Grant Agreement. Reimbursement Most UBG funds will be paid by reimbursement payments. Under this Payments payment method, the CIWMB retains 10% of the requested amount until the grant is closed out. The remaining 10% reimbursement payment(Withhold amount)will be released to the Grantee at the conclusion of the grant term once the Grantee has corn plied with all grant provisions. To receive a reimbursement payment, Grantees must submit a completed EIS and Grant Payment Request Form. Reimbursement payment requests must be submitted no later than December 30, 2011. Once reviewed and approved,the payment reimbursement will be processed. Grantees may request up to four reimbursement payments per year, per cycle, and no less 13 105 than one per year, per cycle. Exceptions to this schedule must be pre- approved in writing by your CIWMB Grant Manager Submittal of Payment Required Documents and Format for Payment Request Requests A complete payment request must include the following items in the order listed in addition to a brief narrative that explains for what activities the expenses were incurred, if the payment request is not submitted with the annual report. (The CIWMB Grant Manager may require additional narrative to fully understand the nature of the expenditures). 1. Grant Payment Request Form (CIWMB 87)—This form must be signed by the individual authorized by the resolution. 2. Expenditure Itemization Summary (CIWMB 667 or Grantee's own version) -All expenditures must be itemized and arranged by the Reporting and Expenditure Categories. 3. Personnel Expenditure Itemization Summary (CIWMB 165)—Only applicable to consultants and grantee's staff. Note: All expenditures must be accompanied by documentation that describes the EIS categories for which thefunds were spent,when they were spent,who did the work or spent the funds and the invoice numbers associated with the spent funds. Please contact your CIWMB Grant Manager for approval if you intend to provide some other form of supporting documentation. Expenditure Itemization Grantees are required to submit the EIS Form (CIWMB 667) covering expenses Summary (EIS) for the previous fiscal year(July 1 -June 30) by grant cycle or for any period in which expenses were incurred. Please contact your CIWMB Grant Manager for pre-approval if you intend to provide some other form of supporting documentation. Use the reporting and expenditure categories listed below when preparing the EIS. Only directly applicable eligible expenses should be included. Summarize all of the expenses that were incurred by grant cycle over the 12 month reporting period and use only the categories that are applicable t o the Grantee's grant pro gram, including personnel costs related to that task(s). For each category, identify the related tasks and expenses. If there is more than one invoice from a company, list them separately on the EIS. Include invoice numbers. Permanent Collection Facilities —Includes eligible expenses for collection centers, PHHWC and ABOP facilities. Do not include publicity and education or oil containers in this category. Temporary or Mobile Collection—Eligible expenses for temporary events at an established facility, and mobile events. Residential Collection —Curbside or door-to-door collection of used oil and used oil filters. Load Checking Program—Inspection of loads for used oil at solid waste landfills or transfer stations. 14 106 Publicity and Education—All eligible publicity, public education, and community outreach events (except those relate d to storm water education). • A partial list of examples includes newspaper ads; radio spots; public service announcement TV spots; flyers; brochures; door hangers; utility bill inserts; billboards; collection center handouts (such as "shelf talkers"), and premiums. • Material/supply expenses for community events and school presentation s should be included i n this category. • Local government personnel expenses should be placed into the PersonnelOther category. EIS Certification -The EIS MUST include the following certification: "I certify under penalty of perjury under the laws of the State of California, that the above information is correct and that all funds received have been expended in accordance with the Used Oil Recycling Block Grant." The certification MUST be dated and signed by the Signature Authority specified in the Grantee's resolution. An EIS received without the signed certification will not be approved. Personnel Expenditure Personnel Expenditure Itemization Summary(CIWMB 165) for Grantee staff as Itemization Summary well as consultants and subcontractors or an equivalent form (if pre-approved in (PES) writing by the CIWMB Grant Manager) must be submitted to document all grant- related personnel costs. In consideration of the sensitivity of the data that may be contained on the pay roll journal/register, personnel tim e logs or copies of timesheets, a Grantee may not want to submit these forms to the CIWMB. As an alternative, the Grantee may submit the PES or equivalent form with two signatures (Signature Authority and/or staff from the Personnel or Accounting Office) verifying the information is accurate. Grantees must retain payroll journals/registers and personnel tim e logs/timesheets for audit purposes. Please contact your CIWMB Grant Manager if you have any questions. Supporting Documentation for all expenditures claimed on the Grant Payment Request must Documentation for be retained for a minimum of three years after closeout of the grant term for audit Expenditures purposes. (see Audit/Records Access in Terms and Conditions(Exhibit A). Retain the original documents at your office. Types of acceptable documentation include but are not limited to: • Invoices that include vendor's name, telephone number and address; a description of goods or services purchased; amount due; and date and must be accompanied by proof of payment (e.g., copies of cancelled checks) • • Receipts that include the same information as invoices. • Purchase orders that include the same information as invoices and must be accompanied by proof of payment(e.g., copies of cancelled checks) 15 107 • • Personnel Expenditure Summary Form (CIWMB 165 or your own version if pre-approved) that docum ents actual time spent on grant-related activities • Travel Expense Form (CIWMB form or your own version)that documents costs related to travel and includes supporting documentation • Samples of all publicity and education materials purchased or developed with grant funds • Proof of Payment(e.g. copies of cancelled checks and/or documented payment within the financial records.) Ten Percent Withhold Ten percent of grant funds will be withheld from each Grant Payment Request and paid at the end of the grant term when all reports and conditions,stipulated in the Grant Agreement, have been satisfactorily completed. For Grantees with reimbursement grants, the 10% withhold will be released when Final Report has been approved by the CIWMB Grant Manager. For Grantees who have received Advance Payments,the 10%withhold will be released when the CIWMB Grant Manager has approved the Final Report an d verified through documentation submitted by the Grantee that 100%of the advanced grant funds have been expended. Audits Documentation and a clear audit trail are essent ial to grant management. The Grantee agrees to maintain records for a possible audit for a minimum of three years after final payment or grant term end date, whichever is later, unless a longer period of records retention is stipulated, or until completion of any action and resolution of all issues which may arise as a result of any litigation, dispute, or audit,whichever is later. Examples of audit documentation include, but are not limited to, expenditure ledger, payroll register entries, time sheets, personnel expenditure sum maty form, travel expense log, paid warrants, contracts and change orders, samples of items and materials developed with grant funds, invoices and/or canceled checks. Refer to the Terms and Conditions(Exhibit A)for more information. 'There are only two acceptable Spanish translations: "Financiado por una beca del California Integrated Waste Management Board"or"Patrocinado por Tondos del California Integrated Waste Management Board." For other languages,you must work with a certified translator or person fluent in reading and writing that language. "For information on minimum recycled-content products, see www.ciwmb.ca.gov/BuyRecycled/StateAgencv/. 16 108 AZUSA an a wear CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 26, 2009 SUBJECT: REJECT SOLE BIDDER FOR PROJECT LD 2008-3 (REFURBISH EXISTING CHAIN LINK PERIMETER FENCE AT AZUSA SUBSTATION) AND AUTHORIZE STAFF TO SOLICIT INFORMAL BIDS RECOMMENDATION It is recommended that the Utility Board/City Council (1) reject the sole bid received for Project LD 2008-3 (Refurbish Existing Chain Link Fence at Azusa Substation), and (2) authorize staff to re-bid this project by soliciting informal bids. BACKGROUND During the regular meeting held last year on 24 November 2008, the Azusa Utility Board approved the plans and specifications for refurbishing the existing chain link fence at the Azusa Substation. On January 6, 2009, bids were publicly opened at the City Clerk's office and only one bidder, Pacific Industrial Electric, submitted a bid for this project in the total amount of $189,971, inclusive of a ten percent contingency allowance. Absent other competitive bids to compare and evaluate the sole bid amount, which is already in excess of budgeted funds, staff recommends rejecting sole bid, as customarily done in previous project bidding. Moreover, project delay from re-bid will not pose any significant impact to the operation of Azusa Substation. FISCAL IMPACT No fiscal impact at this time and will be determined when additional informal bids are solicited, received and evaluated. Prepared by: F. Langit— Senior Engineer 109 10 €rte A7_USA i am • ueeen CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 26, 2009 SUBJECT: REQUEST TO AWARD CONTRACT AND COMMIT FUNDS FOR UTILITY INFORMATIONAL MATERIALS RECOMMENDATION It is recommended that the Azusa Utility Board/City Council approve the award of a contract to Southwest Graphic Services for artwork and p.rinting of Utility informational materials for eighteen months with an optional two-year extension. BACKGROUND For many years Azusa Light and Water has periodically taken advantage of the excess space in the monthly utility bills by adding bill inserts to provide important information to our customers. In a recent Customer Satisfaction Survey, customers confirmed this as their preferred method of communication. There are several utility business issues and practices, water and electric conservation and rebate programs, and drought updates to share with our customers. A schedule of bill inserts, bill messages and other information delivery options is being coordinated into a communications plan. At the October 2008 Utility Board meeting it was approved that a Request For Proposals (RFP) to be initiated. The RFP allowed responses to any one or all three components. The first component was for artwork development, the second was for printing costs and the final component was for a combination of both artwork and printing. We believed this would allow us the flexibility to pick and choose the most cost effective method of attaining high quality communication products. The RFP was sent out to eleven local or referred vendors and eight replied with proposals. After a paper review, the field was narrowed to two finalists based on samples of work and price. One was a full-service vendor and the other provided artwork only and we would have to get printing done elsewhere. After reviewing all of the proposals we concluded that using one shop 110 for printing and artwork provides an advantage of a single point of contact that is totally accountable for the entire printed project. Following an interview with both candidates it was decided that Southwest Graphics had a wider variety of offerings that not only included the normal printed flyers and inserts, but also media that can be used in the lobby, displays around the City offices and possibly other promotional items as well. They demonstrated a fresh style and clear wording in their print. There was also a good connection with the Account Manager who will be the primary point of contact for our account. In addition, Southwest Graphics came very highly recommended by a contact at Glendale Water and Power who has been using the company for quite some time. For a typical bill insert the difference in cost between the two short-listed vendors was less than $100.00 after combining the printing and artwork with other competing vendors. FISCAL IMPACT For the remainder of fiscal year 2008-09, cost is not to exceed $16,000. Funds have been budgeted in Account numbers 24-40-739-085-6625/Market-6625, 32-40-721-791-6625, 31-40- 711-903-6539 6625/Market-6625, 32-40-721-791-6625, 31-40- 711-903-6539 and, 31-40-711-920-6539, for the various Utility programs. Future funding needs will be budgeted in their respective years. Prepared by: Paul Reid, Business Development/Public Benefit Programs Coordinator Karen Vanca, Assistant Director Customer Care & Solutions 111 s . .. ... e ift mom AZUSA CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 26, 2009 SUBJECT: NOTICE OF COMPLETION - PROJECT W-243, WATER TREATMENT PLANT WATER MAIN AND SEWER FORCEMAIN INSTALLATION IN THE CITY OF AZUSA RECOMMENDATION It is recommended that the Utility Board/City Council accept Project W-243, and direct the City Clerk's Office to execute the Notice of Completion and have the same recorded at the Office of the Los Angeles County Recorder. BACKGROUND Azusa Light & Water is currently building a new membrane water filtration plant at its Canyon Filtration Plant site. This project installed the waterlines that will provide raw water to the Water Treatment Plant for treatment and transmit treated water to the Water System for distribution. Also a part of this project is a sewage force main that will carry wastewater from the new Water Treatment Plant to the existing sanitary sewer in San Gabriel Canyon Boulevard. This project was awarded to Ken Thompson, Inc. at the March 24, 2008, Utility Board meeting and all work is now complete. FISCAL IMPACT The fiscal impact of approving Notice of Completion involves the return of $158,910.34 currently held by the City as retainage on this project following the statutory 35 day waiting period. Prepared by: Chet F. Anderson, P.E.,Assistant Director, Water Operations 112 RECORDING REQUESTED BY City of Azusa AND WHEN RECORDED MAIL TO: r NAME Azusa City Clerk sn'Er 213 E. Foothill Blvd. AOORE55 CTI.sr.rlt Azusa, CA 91 702 _ ZIP CODE t SPACE ABOVE THIS LINE FOR RECORDER'S USE e��®��eeati���9A���a��riaoii,����'\�usaii�r������s�>�u�ivsvrin���������iaa�������iada,������uiivoan���n�»�w� NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for Complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is City Of Azusa 3. The full address of the owner is 729 N. Azusa AVenue, Azusa, CA 91 702 4. The nature of the interest or estate of the owner is: In fee. (IF OTHER THAN FEE.STRIKE-IN FEE-ANO INSERT,FOR FK E._PURCHASER UMER COMMcr OF PUFKHAst,-OR-u ssEE-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 N/A 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 N/A 7. A work of improvement on the property hereinafter described was completed on January 2 6, 20 O 9 The work done was: Azusa Water Treatment Plant watprmain R Spwprmnin Tnsfallafinn 8. The name of the contractor,if any,for such work of improvement was Ken Thompson Inc. p n Rnx 77F4n fornnn 928.77-0121 - April 14, 2008 (i NO COMMCTOR FOO WORK OF W PPO EMEM AS A W110L.I.SM'ROM') (DATE OF owmcTI 9. The property on which said work of improvement was completed is in the City of Countyof ,Stateof - ,and isdescribed asfollows: 10. The street address of said property is - F M STREET AOOPE55 HAS BEfx OPFKIALLY ASSIGEO.INSER! MNE'.I Dated: ( K,MTUPE OFOWNFR OP COaPpMTf OFFICER OF OWNED HAMFD w PAMORAPH 2 O0.MIS FOEHTI Joseph R. Rocha VERIFICATION I,the undersigned, say:I am the Mavor Of. City Of AZUSa the declarant of the foregoing notice of completion; ('PPES�OFM ii . AN' OG . PAWNFH OF , NEP 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 (CM) tsrATEI Joseph R . Rocha («�IIIIIIiIIlllllllll IPE0.50NA1 FI4NANINpV1 RE OF THE OUAL'MIO IS SNFAPoNO THAT THE COMHE NO FNTS OF THE OF COMPLETION AAE TRUE.) T I IIf wmcos FORM 1114 -R.,.&94 tp,k,d.0 3A) Ilr 1 NOTICE OF COMPLETION 7775 39114 5 1991 WOLCOTTS FORMS.PTC. (See reverse side for additional Information) 113 q Y }uss+ ���5j¢gp,'T"��a�a "� � 4 k, y� : . r AZUSA rnr r:arr CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES V DATE: JANUARY 26, 2009 SUBJECT: REQUEST FOR PROPOSALS - WATER MAIN REPLACEMENT PROJECTS RECOMMENDATION It is recommended that the Utility Board/City Council authorize staff to solicit proposals from qualified consultants to prepare plans and specifications for water main replacement projects. BACKGROUND The Water Division has a program of replacing water mains that are experiencing problems with leaks and that are, for various reasons, experiencing flow and pressure problems. The mains to be replaced have both leak problems requiring constant repair and deliver less flow than is optimal for current residential area standards. In order to repair water mains, design and engineering plans and specifications must be developed so that projects can be bid out. This item seeks authorization to release a Request for Proposals (RFP) to gather consultant proposals to provide the consulting engineering design services necessary to prepare plans and specifications for the priority pipeline replacements projects listed in attachment. The scope of services for the RFP is set forth in the attached draft letter. With this authorization, it is anticipated that the RFP would be released within the next 30 days with consultant selection in March. FISCAL IMPACT The fiscal impact of this proposed study will be reported following receipt of proposals in response to our RFP. Prepared by: Chet F. Anderson, Assistant to the Director of Utilities 114 Water Distribution Section 2008-2009 Water Main Replacement Projects A. Main replacement Priority Location Comments Len h 1 Lark Ellen from Cypress N. to wash, Project I 4100' of 12" Brookport, Bellbrook, Benwood, Benbow, 10985' of 8" Vogue, Coney, and Roxburgh tract 2 San Bernardino road from Azusa Canyon to Project II 2645' of 10" to replace Irwindale. 6" 3 Workman from Sunset East to service area Project II 5300' of 10" & 8" boundary 4 Gladstone from Citrus to Galanto Project III 1850' of 8" to replace 6" 5 Hilltop from Sierra Madre North to end of Project III 800' of 8" to replace 6" rivet Rd. 6 San Gabriel Rd. from Sierra Madre to 11 Project III St. 7 Rue De Vallee, Homerest, Renwick, Project III Replace plastic services Payson, Kirkwall, Sally lee, Grandon, Mary Ann, Susan Mare and Cindy Lou. 8 900 West Sierra Madre Ave. Project III Replace plastic services 9 Clydebank from Gladstone S. to Arrow TBD 10 Gladstone from Clydebank E. to Vernon TBD 11 Celeste from W. to E. on Russell TBD 12 Scott from Russell N. to Casita TBD 13 Casita from Scott E. to Rosalinda TBD 14 Rosalinda from Russell N. to Casita TBD 115 B. Main Rehabilitation (cement lining) Priority Location Comments Length 1 Azusa from Paramount North to 2" St ( ? -10" ) 2 Lark Ellen from San Bernardino North to (1,400' —6") RR tracks. 3 Azusa Ave from San Bernardino North to (1,100' — 10") RR tracks. 4 Paramount from Azusa West to San (? — 14") Gabriel 5 Newburgh St. from Barranca to Griff Res. Distribution (1,700' — 12") property. line 6 12" from Todd Ave East to 8" PVC (Golf (????- 12") Course) 7 Tra mor from Gladstone to Newburg. (1,350' — 12") 8 San Bernardino from Vincent Ave. East to (1500'-6" & 8") Cutter Way 6" 9 Puente Ave, from Orange East to Yalton (?' - 8"& 12"). 10 5h St from Virginia to San Gabriel (2,400' — 12") (cement lining). 11 Barranca from Tudor South to Covina (T — 8" & 12") Blvd. 12 Cerritos from Gladstone South to wash ( T — 6") 13 Vincent from Gladstone South to wash ( ?' — 8") 14 Arrow Hwy. from Enid West to Lark (?' — 12") Ellen 15 1 11h from Pasadena West to Holmar (?' — 8") 16 Covina Blvd. from Barranca West to Fairvall 17 Citrus from Covina Blvd. North to Tudor (?'- 4"& 8") (East and West Side main's) 18 116 January 26, 2009 Principal Consultant. Address City, CA Zip Reference: Request for Proposals Main Replacement Improvement Projects Consultant Engineering Design Services Gentlemen: The City of Azusa Light &Water Department invites your proposal to perform the referenced engineering services for various improvements to the City's water system described in more detail below: General Description of the Projects Following are descriptions of the improvements to be made to the water system: Project I. TBD Project 2. TBD Project 3. TBD Project 4. TBD Project 5. TBD All of the above pipeline projects will include replacement of all existing water services and reconnection of existing fire hydrants. Scope of Services The engineering firms chosen for the above projects shall perform the following tasks: Design Phase 1. Conduct a thorough utility search for the proposed alignments. 2. Prepare plan and profile base 1 117 3. After determining the optimum alignment of the waterline, perform a pipeline alignment centerline profile survey. 4. Prepare plan sheets of the waterline improvements on the plan and profile base sheets at a scale of 1-inch to 40 feet. 5. Prepare easements as necessary for pipeline not in public right-of-way. 6. In addition to the waterline plan sheets, provide a standard Azusa Light & Water cover sheet and sufficient detail sheets (at least one) to fully communicate the special connections and special crossings necessary for the waterline installation. 7. Also on the detail sheets, communicate details as necessary to meet the requirements of the City of Azusa Public Works Department, City of Covina, City of West Covina, City of Irwindale, Los Angeles County Public Works, Glendora Public Works, or other entities with jurisdiction over the streets containing the waterlines. 8. Prepare Specifications for the work to be done using ALW format and ALW Standard Details, Standard Bidding boilerplate, and Special Provisions and Technical Specifications (prepared by the consultant using existing ALW specs). ALW Standard Details are available on the Internet at alw.com. 9. Prepare an Engineer's Estimate of Cost. Submittals required for this proposal Consultants proposing on this project shall submit the following along with any other information the consultant considers supportive: 1. A list of similar projects performed by the consulting firm with reference names. 2. Resumes of personnel and subconsultants who may work on this project. If the personnel resumes include work done while employed by another consultant. 3. A complete and current consultant fee schedule including inspection services. 4. A schedule of insurance coverage. Minimum insurance requirements for engineers are enclosed following as Exhibit A. 5. A recitation of the scope of services proposed. 6. A project schedule of time required for completion of the design project. 7. A project schedule of manhours required for completion of the design project. 8. A fee estimate for each of the following tasks: a. Utility research. b. Plansheet and project cost estimate preparation. (Plans will be submitted to ALW at 50%, 90% and 100% stages of completion.) c. Preparation of bid packets containing plans and specifications (25 sets) d. Bid assistance (assume 3 week bid period). e. Permits will be acquired by Contractor of pipelines; plans and specifications should be specific which agency permits are required. f. Sufficient meetings with City water personnel during the design phase to gather information and keep the City personnel informed of the project progress. Four (4) meetings minimum onsite or at the Light & Water Building. 2 ��$ Date and Time Due The requested proposals shall be submitted to the Light & Water Department second floor desk on or before 5:OOPM, Thursday, March 12, 2009. Construction of the proposed pipeline improvements may not take place in this fiscal year. The proposed pipeline alignments and rough existing facilities are located as shown in the enclosed location maps. A preproposal meeting will not be held. Consultants should satisfy themselves of the possible planning requirements of the proposed alignments. Please contact Chet Anderson, at 626-812-5209 with questions and requests for additional information. Very truly yours, Chet Anderson, P.E. Assistant Director, Water Operations 3 119 EXHIBIT A City of Azusa Consultant Services Agreement -Insurance Section Requirements- 3.2.10 Insurance. 3.2.10.1 Time for Compliance. Consultant shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. i 3.2.10.2 Minimum Requirements. Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage: (A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. i (B) Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2)Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers' Compensation and Employer's Liability: Workers' Compensation limits as required by the Labor Code of the State of California. Employer's Liability limits of$1,000,000 per accident for bodily injury or disease. 3.2.10.3 Professional Liability. Consultant shall procure and maintain, and require its sub-consultants to procure and maintain, for a period of five (5) years following completion of the Project, errors and omissions liability insurance 4 � X20 appropriate to their profession. Such insurance shall be in an amount not less than $1,000,000 per claim, and shall be endorsed to include contractual liability. 3.2.10.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies: (A) General Liabilitv. The general liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insured with respect to the Work or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it in any way. (B) Automobile Liability. The automobile liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it in any way. (C) Workers' Compensation and Employers Liability Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Consultant. (D) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty(30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents and volunteers. 5 121 i 0 3.2.10.5 Separation of Insureds: No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers. 3.2.10.6 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Consultant shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 3.2.10.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. 3.2.10.8 Verification of Coverage. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. i i 3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. i i 6 122 I A7_USA 1I44T t 'RATFR CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES' DATE: JANUARY 26, 2009 < {, 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 i RECOMMENDATION I It is recommended that the Utility Board/City Council approve Change Order No. 13 for the addition of $71,407.91 and extension of time to complete by 34 calendar days to the SSC Construction, Inc. contract for construction of Project WVF-207, Canyon Filtration Plant Membrane Treatment Upgrade and Expansion. BACKGROUND At its November 20, 2006 regular meeting, the Azusa City Council awarded the bid to SSC Construction, Inc. for construction of Project WVF-207, Canyon Filtration Plant Membrane Treatment Upgrade and Expansion. Subsequent to starting work on the construction of WVF-207 changes to the work and to the contract amount and time of completion are required. This Change Order No. 13 represents an aggregation of SSC Change Order Requests (COR) 25, 30, 31, 32, 33, and 34 and a time extension of 34 days. An overview of Change Order Requests 25, 30, 31, 32, 33, and 34 is provided below. A detailed justification/explanation of each COR is provided by reference to an attached Black& Veatch letter and Change Order Form. COR 25: Membrane building compressor/dryer: supplier of membrane equipment (Siemens) revised the compressor/dryer equipment which required revisions to the power supply and electrical switchgear. $4,443.51 and a 1 day extension. COR 30: Membrane feed blower filters: Siemens membrane standard intake filter configuration includes a filter attached directly to the filter unit. A modification to the intake system is required to redesign the filter configuration to take in outside air rather than ambient air. $5,968.51 i 123 i COR 31: Electrical revisions to packaged air handling units (PAH's) 1 and 2: a larger power supply was necessary to accommodate larger PAH's. $30,265.61 and a 28 day extension. COR 32: Fiber optic cable procurement and installation: Additional fiber optic cable required for controls communication between the O&M Building and the treatment process controls. $22,681.97 COR 33: Membrane equipment power supply: Additional power supply needed for instrumentation and devices associated with the membrane filtration system. $17,402.81 and a 5 day extension. COR 34: Credit for deletion of pretreatment effluent slide gates: Manufacturer of the plate settler equipment recommended deletion of two(2)of four(4) slide gates. ($9,354.50) Additional Calendar Days: 34 total days are needed to complete the added work associated these Change Order Requests. This brings contract required completion date to December 17, 2008. FISCAL IMPACT This request has a fiscal impact of$71,407.91 to be funded from the Capital Improvement Programs budget for project 72107C. Since revised completion date is December 17, 2008, contractor will still be subject to liquidated damages of$1,000 per day. Prepared by: Chet Anderson, Assistant Director- Water Operations 124 BLACK& VEATCH building a world G1 E iflerence- E ENERGY WATER INFORMATION GGVERNMENI !City of Azusa B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and B&V File A.5 Expansion January 15u', 2009 Mr. Chet Anderson, P.E. I Assistant Director of Utilities-Water Operations Azusa Light& Water 729 N. Azusa Avenue Azusa, CA 91702 Subject: Change Order No. 13 Dear Mr. Anderson: t Black & Veatch (B&V) is furnishing this letter as an update for Change Order No. 13 for SSC Change Order Requests (COR)25, 30, 31, 32, 33, and 34. i COR 25: Membrane Building Compressor/Dryer The Contract Drawings for the Membrane Building show 2 separate compressors and 2 separate dryers with separate power supplies. Due to unavailability of previously selected equipment, Siemens revised the compressor and dryer configurations so that there would be 2 compressor/dryer combination units. Installing the combination compressor/dryer units required revisions to the power supply and electrical switchgear. The total cost for these modifications is $4,443.51. SSC has requested a I day extension to the contract duration for completion of this work. B&V has reviewed Change Order No. 25 and recommends acceptance,including changes to the contract price and duration. COR 30: Membrane Feed Blower Filters l Siemens membrane procurement contract included their standard intake filter configuration which includes a filter attached directly to the blower unit. This configuration results in the blowers using the ambient air inside the room which is not recommended. Therefore a dedicated air intake pipe which takes outside air is included in the B&V design. This air intake piping needs an in-line filter to prevent any debris from entering the blowers. Since the intake filter is part of Siemens' scope'of supply, Siemens revised their scope to supply the in-line intake filter. The additional cost is the difference between Siemens' standard filter configuration and the in-line intake filter design. The total cost difference between the two filter systems was$5,968.51. B&V has reviewed Change Order No. 30 and recommends acceptance, including changes to the contract price. COR 31: Electrical Revisions to Packaged Air Handling Units 1 and 2 Upon review of the shop drawings for the packaged air handling units(PAH) 1 and 2, it was determined that a larger power supply was required. To accommodate the larger PAH units, the power feeders to the PAH's were revised, the local disconnect switches were upsized, and a new transformer and panel were provided. The total cost for these revisions was $30,265.61. SSC has requested a 28 day extension to the contract duration for completion of this work. B&V has 1 s i f Black 6 Veatch Corporation-15615Aron Parkway,Suite 300-Irvine.CeNornia 92618 USA-sTelephone 949 753.0500•Fax 949.753.1252 I 125 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File 1.6 Change Order No.13 reviewed COR 31 and recommends acceptance, including changes to the contract price and duration. COR 32: Fiber Optic Cable Procurement and Installation This change order includes the cost to furnish,install, and test the fiber optic cable. This additional work is required for controls communication between the O&M building and the treatment process controls. Spare conduits provided in the design were used for routing new fiber optic cable to reduce cost. Change Order Request 32 includes the cost for the fiber optic cable procurement and installation as well as testing services. The total cost for the fiber optic cable is $22,681.97, which includes testing services. B&V has reviewed Change Order No. 32 and recommends acceptance, including changes to the contract price. COR 33: Membrane Equipment Power Supply Additional power supply was needed for some instrumentation and devices associated with the membrane filtration system that were shipped loose for installation in the field_ This power supply is essential for proper functioning of the overall system. The instruments included solenoid valves, flow transmitters, and flow meters on the feed side of the membrane skids. The total cost for this change order request includes the furnishing and installation of the required power cable and conduits. The total cost to provide power was $17,402.81. SSC has requested a 5 day extension to the contract duration for completion of this work. B&V has reviewed COR 33 and recommends acceptance, including changes to the contract price and duration. COR 34: Credit for Deletion of Pretreatment Effluent Slide Gates During the initial submittal phase for the inclined plate settler equipment, it was determined by the equipment manufacturer that two troughs from each of the two basins could be deleted without affecting the performance of the inclined plate settler system. The removal of the troughs (4 total) resulted in the deletion of four slide gates at the effluent end of the basins. The total credit for this deletion is $9,354.50. B&V has reviewed COR 34 and recommends acceptance. Summary: The table below provides a summary of the Change Order Requests included in this package. The final change order value is $71,407.91 and the total number of calendar days requested is 34. B&V recommends approval of these additions to the contract price and duration. ChaogeOrder Charge to Time Added RetItiest _ COR 25 Contract$4,443.51 1 COR 30 $5,968.51 0 COR 31 $30,265.61 28 COR 32 $22,681.97 0 COR 33 $17,402.81 5 COR 34 -$9,354.50 0 TOTAL $71,407.91 34 2 126 SUMMARY Change Orders " $71.407.91 Add(Net) CHANGE TO CONTRACT PRICE I Original Contract Price $ 35.905.500.00 Current Contract Price Adjusted By Previous Change Order(s) $ 36.351.288.39 Contract Price due to this Change Order will be(increased) $ 71.407.91 New Contract Price, Including this Change Order $ 36.422.696.30 CHANGE TO CONTRACT TIME: Contract Time Will Be Increased by l 34 (Calendar Days) I Date of Completion of All Work December 17,2008 w APPROVED: i Owner: Azusa Light&Water Contractor: SSC Construction, Inc. By: By: Chet Anderson Authorized Signature P Engineer: Black &Veatch i V By: Ashu Shirolkar, Project Manager i 9 127 Justification 1. (Reference SSC Change Order Request 25) Siemens revised the compressor/dryer configuration in the Membrane Building from a separate compressor and dryer configuration to a combination compressor/dryer. This change was necessary as the separate compressor and dryer models that were originally quoted were not offered by the manufacturer anymore. This change resulted in additional cost to supply power and appurtenances to the combo compressor/dryer unit. 2. (Reference SSC Change Order Request 30) An in-line filter is required on the membrane feed blower intake piping due to noise and air supply. Siemens' original proposal included their standard filter configuration which is attached to the blower unit. The additional cost is for Siemens to provide an in-line filter as indicated on the design drawings. 3. (Reference SSC Change Order Request 31) Upon review of the submittals for packaged air handling units (PAH) 1 and 2, it was determined that a larger power supply was required. To accommodate larger air handling units, the power feeders to the PAH's were revised, the local disconnect switches were upsized, and a new transformer and panel were provided. 4. (Reference SSC Change Order Request 32) This change order includes the cost to famish, install, and test the fiber optic cable. This additional work is required for controls communication between the O&M building and the treatment process controls. Spare conduits provided in the design were used for routing new fiber optic cable to reduce cost. Change Order Request 32 includes the cost for the fiber optic cable procurement and installation as well as testing services. 5. (Reference SSC Change Order Request 33) Additional power supply was needed for some instrumentation and devices associated with the membrane filtration system that were shipped loose for installation in the field. This power supply is essential for proper functioning of the overall system. The instruments included solenoid valves, flow transmitters, and flow meters on the feed side of the membrane skids. The total cost for this change order request includes the furnishing and installation of the required power cable and conduits. 6. (Reference SSC Change Order Request 34) During the initial submittal phase for the inclined plate settler equipment, it was determined by the equipment manufacturer (hat two troughs from each of the two basins could be deleted without affecting the performance of the inclined plate settler system. The removal of the troughs (4 total) resulted in the deletion of four slide gates at the effluent end of the basins. 128 ; I I AZUSA LIGHT AND WATER t CHANGE ORDER Order No. 13 Date January 15. 2009 Agreement Date January 17, 2007 Sheet 1 I� of 3 Owner: Anrsa Light and Water f Project: Canyon Filtration Plant Upgrade and Expansion I Contractor: SSC Construction Inc. i The following changes are hereby made to the Contract Documents: iADD DEDUCT 1. Revisions to the Membrane Building compressors' and dryers'power $4,443.5.1 supply I (Reference SSC Change Order Request 25) 2. Revisions to the Membrane Building blowers' intake filters $5,968.51 (Reference SSC Change Order Request 30) 3. Electrical Revisions to Packaged Air Handling Units I and 2 $30,265.61 (Reference SSC Change Order Request 31) 4. Fiber optic cable procurement and installation $22,681.97 (Reference SSC Change Order Request 32) 5. Membrane Equipment Power Supply $17,402.81 (Reference SSC Change Order Request 33) 6. Credit for Deletion of Pretreatment Effluent Slide Gates $9,354.50 (Reference SSC Change Order Request 34) NET COR AMOUNT(ADD) $71,407.91 i i I 129 I 141 _ ON AZUSA i r rnr � werry 1 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL i FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES V DATE: JANUARY 26, 2009 1 SUBJECT: PURCHASE OF SINGLE DRUM PULLER Ai ND BULLWHEEL TENSIONER USED FOR STRINGING OVERHEAD HIGH VOLTAGE CONDUCTORS RECOMMENDATION It is recommended that the Azusa Utility Board/City Councilapprovepurchase of single drum puller in an amount not-to-exceed $63,287.46 from Sherman`& Reilly, Inc., and purchase of bullwheel tensioner in an amount not-to-exceed $34,804.38 from Wagner Smith Equipment Company. I BACKGROUND 1 The Electric Division has identified the need to upgrade the size of existing high voltage conductors due to increased customer loads and feeder circuit configurations at various locations throughout the electric system. The replacement of existing lines is more difficult than new installations because the existing lines are energized and currently feeding customers. In order to replace existing lines safely and with little or no outages to the customers, special equipment such as pullers and tensioners, are required. Bids were solicited from the only known vendors of this type of equipment and the results are listed below and include freight and sales taxes: Single Drum Puller: Vendor Location Total Cost Sherman &Reilly Inc. Chattanooga, Tennessee $63,287.46 TSE International Shreveport, Louisiana $68,446.73 Wagner Smith Equip. Co. Burleson, Texas $71,037.82 130 Bullwheel Tensioner: Vendor Location Total Cost Wagner Smith Equip. Co. Burleson, Texas $34,804.38 TSE International Shreveport, Louisiana $40,928.50 Sherman Reilly, Inc. Chattanooga, Tennessee $47,542.50 Since this is an equipment purchase for over$25,000, it requires approval by the Utility Board/City Council. FISCAL IMPACT The total cost of both items is $98,091.84. Funding for these purchases is available in approved Electric Division Operating Budget to effect purchase. Prepared by: Dan Kjar, Electric Operations Supervisor 131 AZ_US.A SIGHT Un 1ALIA r I CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES 1 A i DATE: JANUARY 26, 2009 SUBJECT: ADDITIONAL COMPENSATION TO DESIGIO CONSTRUCTION, INC. FOR ADDITIONAL WORK ON PROJECT W-238 WATER MAIN REPLACEMENT PROJECT RECOMMENDATION It is recommended that the Utility Board/City Council: !(1) approve a budget addition of $77,508.81 and an extension of 13 days to the J. DeSigio Construction, Inc. contract for construction of Project W-238, Water Main Replacement,Project; and (2) authorize staff to negotiate with J. DeSigio Contruction, Inc. on extra cost claims and liquidated damages resulting from construction of Project W-238. BACKGROUND At its April 23, 2007 regular meeting, the Azusa Utility Boaid/City Council awarded contract to J. DeSigio Construction, Inc. in amount of $1,581,195 to construct Project W-238, Water Main Replacement Project—Group 2: Cypress Street and Sunset Avenue, located in Covina and West Covina which included 15,000 linear feet of 4-inch to 14-inch distribution main and 13 6-inch fire hydrants. After being given a Notice to Proceed effective June 11, 2007, the Contractor began construction on this project on July 10, 2007. With 150 days to complete the project, the original completion date was November 8, 2007. At the onset of the work on the project, and for approximately two months afterward, the Contractor proceeded with inadequate staffing to complete the project on time. Over the course of the project, due to Engineering inspections, the Contractor was issued six (6) Change Orders that extended the time of completion by 20 days to 170 calendar days. Payment was made for three Change Orders since the amounts were within the approved project budget. The Revised Completion Date was November 27, 2007. i f 3 • i I 1J� ' However, the project was not substantially complete until February 21, 2008, fully 86 days late. DeSigio continued to work until March 21, 2008, when the project was deemed complete. At that time, staff was preparing to have the Board approve the three outstanding Change Orders and also the Notice of Completion. Given the delays in project completion, staff advised the Contractor that Liquidated Damages would be assessed in the amount of$43,000. The Contractor expressed concern with the City issuing a Notice of Completion and on May 20, 2008, the Contractor presented a claim for approximately $178,000 for extra work on the project. The Contractor's claim did not follow the specification procedures for making requests for additional compensation and the request was unsubstantiated and was not made within the permitted time frame. Unfortunately, Notice of Completions cannot be processed when a contractor has outstanding claims against the City and so the claim delayed further consideration of the Notice of Completion. The City and DeSigio have been meeting to resolve outstanding issues, and have agreed that the three outstanding Change Orders should be paid. These include Change Order Numbers 2, 4, and 6, which represent work that was done by DeSigio that exceeded the approved amount for this project. These Change Orders also represent a time extension of 13 days and are listed below: • Change Order No. 2 is $15,241.09 for additional pipeline installed to correct trench fill cover problems with the existing pipe. 3 day time extension • Change Order No. 4 is $44.305.22 for additional excavation, unmarked obstructions, hand excavation and changes in the pipe alignment. 7 day time extension • Change Order No. 6 is $17,962.50 for the removal and reconstruction of 3 concrete bus pads at the direction of Metropolitan Transportation Authority. 3 day time extension As noted previously, payment for Change Order Numbers 1, 3, and 5, was processed since the amounts were within the project budget. Staff acknowledges that it should have acted more quickly to process payment for Change Order Numbers 2, 4, and 6. In order to resolve outstanding items, it is proposed that City staff be authorized to negotiate with DeSigio on their extra cost claims and liquidated damages associated with this project. Settlement would permit the City to approve the Notice of Completion and release final payment to contractor from project retainage account, about $158,000. FISCAL IMPACT Approval of the three change orders will add $77,508.81 to total project cost. Funding for change orders is currently available in Water Capital Improvement Program account 32-80-721- 000-7130n2107B-7130. Prepared by: Chet F. Anderson, Assistant Director- Water Operations Cary Kalscheuer, Assistant to the Director of Utilities 133 O t M. i AZUSA INFORMATION ITEM I TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 26, 2009 I SUBJECT: PERMISSIBLE USE OF ELECTRIC UTILITY'S PUBLIC BENEFIT CHARGE (PBC) MONEY ' On several occasions, a question has arisen from the public regarding the permissible use of Electric Utility's PBC money to fund city programs, in particular to provide free swimming at city's swimming pool. For your information, the attached memo from City Attorney's office provides a legal opinion in regard to this issue. i - b Prepared by: Bob Tang, Assistant Director of Resource Management Paul Reid, Business Development/Public Benefit Coordinator i RV PUB-756732-v1- AZUSA MEMO RE ELE I 1� 1 i 134 BEST BEST 6 KRIEGER ATTORNEYS AT LAW December 11, 2008 Memorandum To: Bob Tang, Azusa Light & Water. FROM: Jeff Ferre, Best Best & Krieger LLP Azusa City Attorney's Office RE: California Electrical Restructuring Legislation Limitations On The Use Of Proceeds From the Nonbypassable Use Charge BACKGROUND We have been asked to review the California legislation pertaining to electrical utility restructuring in the context of the requirement that the City establish a nonbypassable usage based charge to fund investments in public benefit programs. Specifically, a question has been raised regarding whether the City could apply the proceeds from the usage charge to subsidize the cost of public pool operation in order to permit members of the public to use the pool free of charge. The legislation at issue made certain changes and additions to certain codes including revisions to sections of the Public Utilities Code. Such legislation was originally enacted by way of AB 1890, Brulte, enacted on September 24, 1996, as well as follow up legislation provided under AB 995, R. Wright, enacted September 30, 2000. CONCLUSION Upon a review of the above-mentioned legislation, it can be concluded that the City cannot apply the proceeds from the charge toward a program to provide pool use free of charge. The programs to be funded are limited to those that encourage energy efficiency. However, the legislation does continue to promote applicable low-income programs that provide for lower electrical rates in certain circumstances. ANALYSIS Public Utilities Code Section 385(a) provides that each local publicly owned electric utility, such as Azusa Light & Water, shall establish a nonbypassable, usage based charge on local distribution service at a certain amount based on a formula set forth in that statute. The proceeds of said charge are to be used to fund investments by the utility and other parties in any or all of the following: (1) Cost-effective demand-side management services to promote energy-efficiency and energy conservation. (2) New investment in renewable energy resources and technologies consistent with existing statutes and regulations which promote those resources and technologies. RVPUBVFERRE\756732.1 135 t BEST BEST & KRIEGER ' ATTORNEYS AT LAW (3) Research, development and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets. (4) Services provided for low-income electricity customers, including but not limited to, targeted energy efficiency service and rate discounts., Under Public Utilities Code Section 382, low-income programs can be established along the following lines: (a) Programs provided to low-income electricity customers, including, but not limited to, targeted energy-efficiency services and the California Alternate Rates for Energy program shall be funded at not less than 1996 authorized levels based on an assessment of customer need. (b) In order to meet legitimate needs of electric and gas customers who are unable to pay their electric and gas bills and who satisfy eligibility criteria for assistance, recognizing that electricity is a basic necessity, and that all residents of the state should be able to afford essential electricity and gas supplies, the commission shall ensure that low-income ratepayers are not jeopardized or overburdened by monthly energy expenditures. Energy expenditure may be reduced through the establishment of different rates for low-income ratepayers, different levels of rate assistance, and energy efficiency programs. i (c) Nothing in this section shall be construed to prohibit electric and gas providers from offering any special rate or program for low-income ratepayers that is not specifically required in this section. As can be seen from the above-mentioned sections of the Public Utilities Code, aside from ratepayer discounts under certain circumstances, the balance of the programs that can be funded with proceeds from the nonbypassable usage charge are limited to those that promote and implement energy efficiency. There is no category that would be broad enough to encompass a more general public benefit program such as free use of a City pool. For example, Section 1(d) of AB 1890 declares that it is the intent of the Legislature to continue to fund low-income ratepayer assistance programs, public purpose programs for public goods research, development and demonstration, demand-side management and renewable electric generation technologies in an unbundled manner. i 1 2 R V PU B V FERR E\756732.1 i MONTHLY REPORT JANUARY,2009 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 $36,422,696.29 EXTRA DAYS CHANGE ORDERS TO DATE: $100,642.76 10 Approved July 23, 2007 $164,975.54 14 Approved Sept 24, 2007 $57,261.33 4 Approved Nov 26,2007 $22,693.21 0 Approved Feb 25,2008 $9,454.31 24 Approved July 28, 2008 $90,761.23 2 Approved Oct 27, 2008 $71,407.91 34 tent. approv Jan 26, 2009 88 MONTHLY ACTIVITIES Construction progress meetings were held Dec 4, Dec 18,&Jan 8 Total CO's $517,196.29 As of 01/22/09 DYK reservoir roof coating completed O&M flooring completed Chemical Feed building factory reps to begin startup Potassium Permanganate system 90%complete ` Membrane Building outside trim being finished Membrane startup to begin next week - ,,,_.� Sewage lift station testing and startup Pretreatment system tested )%Vb Fire alarm system and sprinklers installed and tested r Plant operators'training began the first week of January NOV+ DEC PROGRESS $622,050.63+$504,707.29 PAYMENT REQUEST: $1,126,757.92 TOTAL PAID TO DATE $33,734,289.91 AMOUNT TO ESCROW* $2,370,004.57 PROJECT PERCENT COMPLETE" 92.62% Final Completion Date is December 17. SSC has not achieved substantial completion;$1,000 per calendar day liquidated damages are being applied and 10%retainage has been reinstated. WE MONVAW114 AZUSA INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES. DATE: JANUARY 26, 2009 SUBJECT: UPDATE REGARDING GREENPATH NORTH PROJECT This is to provide a project update regarding the Green Patti North (GPN) transmission project. As the Board might recall, the Board approved the city's participation in the development studies of GPN transmission project in April 2006. GPN transmission project consists of a high-voltage transmission line from the Imperial Valley to Greater Los Angeles with the purpose of transmitting renewable resources (predominantly geothermal and solar power) located in the Imperial Valley to the consumption centers in Greater Los Angeles. The rationales of city's participation are: • To enable us to evaluate and secure future renewable resources in Imperial Valley • To demonstrate our commitment in planning for necessary infrastructure to serve our customers reliably • To secure our participation should the project eventually get built Other participants in the development studies are Los Angeles Department of Water and Power, the cities of Banning, Burbank, Glendale, and Pasadena. The'city's participation share is 0.8% of the project. I t In the past two and a half years, engineering and technical studies have been done and potential transmission line routes have been identified for further analysis. At this time, the project is at a critical juncture of preparing an environmental planning and assessment report pursuant to National Environmental Policy Act (NEPA). Once the environmental report is fully vetted through a public process and the necessary permits for coristruction are obtained from the US Forest Services and the Bureau of Land Management, the project can then proceed to the construction phase. Ji As in any project impacting the land use, the environmental planning and assessment is the most contentious and challenging part of the process and it is no different for GPN transmission i 138 9 project. Just about every potential route identified has its opponents, sometimes vociferous opposition. For example, the routes that utilize the existing transmission corridors may not be sufficiently wide and thus might necessitate some encroachment in the communities that the transmission line traverses, garnering the opposition from the affected communities. The routes that are less "traveled" might have to traverse on the very southern edge of the Joshua Tree National Park and the wilderness area in Morongo Valley, gamering opposition from local activists who care deeply about the undisturbed land. The attached article is one example of such opposition. At this time, no determination has been made by the project participants which route is the preferred route until the public vetting process is completed. The project participants including the city are fully committed to this public process and will continue to work with the communities and organizations involved to debate the facts and find the best route that would achieve the objective of bringing additional renewable resources from Imperial Valley while minimizing the impacts to the environment. The participants' commitment is summarized in the attached open letter to the communities in the area. We anticipate an intense public debate with potentially significant media coverage in next twelve months about this project. Staff will provide periodic updates to the Board to keep you informed of this process. Prepared by: Bob Tang, Assistant Director of Resource Management 139 r S . A p SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY 3 An Open Letter to the Desert Communities- Update on the Green Path North Project It has been approximately five months since we met with hundreds of residents of the Mpmngo Basin and nearby communities at Yucca Valley High School to discuss the proposed Green Path North(GPN)Transmission Project, a proposal to bring world-class renewable energy,such as geothermal and solar power,from Imperial Valley to the five million residents of Azusa,Banning,Burbank,Glendale,Los Angeles,and Pasadena.We would like to update you on progress of GPN since that meeting. i As discussed In July,building a transmission line such as Green Path North Involves a lengthy process and we are still In the early stages.The U.S.Forest Service,Bureau of Land Management(BLM),and our agencies are now working on an agreement that will guide our respective roles and responsibilities throughout this project. Once this agreement Is In place,we will formally begin the environmental review,which we expect to happen early next year. 1 We will kick off the environmental review with public scoping meetings to gather public comments.During these meetings,we will present the various project alternatives,including viable routes and technologies,In much more detail and with more certainty about what is feasible. - I Recently,there have been numerous claims about the GPN project that are blatantly false.One of the assertions is that the GPN wouitl entail creating a two-to five-mile-wide energy corridor There could be nothing further from the truth.The fact Is that the GPN project will only require a right-of-way as narrow as 200 feet wide and at most 330 feet wide. We have absolutely no intention of asking the BLM to activate a utility corridor nor would we support such a plan. We remain committed to selecting and designing a Path that will have the least Impact on local residents and the environment,while meeting the critical goal of connecting to world-class,clean,green and renewable energy In the Imperial Valley.LADWP has formally committed to using GPN for renewable energy only and other participants Will soon be formalizing this commitment through their respective city governments.We continue to study the viability of a route following the 1-10 corridor.In fact,we have spent much of the past five months examining such an option.It must be stated however,that any route ultimately selected will create local Impacts—all of which must be thoroughly examined.The I-10 corridor I5 no exception.It's not the panacea some would claim,but Involves its own set of challenges and potential Impacts. Another false assertion that has been circulating Is that we don't need Green Path North,but can meet all our needs through energy efficiency and solar power.Again,this I5 a myth. The City of Los Angeles recently unveiled a solar plan more far-reaching than any city In the U.S.Vet even this comprehensive effort will meet only a small fraction of the energy demand.It is also an Intermittent resource that cannot Provide continuous electricity.It is essential for Southern California cities to access geothermal energy if they are to successfully diversity away from coal,and that requires building transmission. ! Another false claim dismisses the value of going underground as an option.Undergrounding sections of the line Is and must be considered along with all other possible configurations and technologies.Undergrounding where, appropriate will minimize visual Impacts,addressing one of the biggest objections to the project.It will remain an option as we move forward In examining all possible routes and attempt to address community concerns. I Be assured we will continue to keep you apprised of our progress,and no decision has yet been made as to the most beneficial alignment.We understand the many concerns of area residents and we are committed to keeping you Informed as to the facts of Green Path North. Sincerely, H.DAVID NAHAI 2!' General Manager and CEO RONALD E.DAVIS Los Angeles Department of Water and Power General Manager Burbank Water and Power LL ' DAMES D.EARHART Electric Utility Director City of Banning Electric Utility GLENNfT, I"(�„LdlYs. WMtG General Manager PHV LIS E.CURRIE Glendale Water and Power General Manager I Pasadena Water and Power JOSEPH F.HSU BILL D.CA NAHAN Director of Utilities Executive Director City of Azusa Light and Water Southern California Public Power Authority 140 Block Energy's Path -- Effort high to keep power lines out of virgin desert 09:41 PM PST on Tuesday,December 23,2008 By JANET ZIMMERMAN The Press-Enterprise In March 2007, April Sall, the conservationist overseeing the Pipes Canyon Preserve in the San Bernardino County desert, got a call from an employee at the federal Bureau of Land Management. The caller wondered if Sall knew of a plan to run 85 miles of electrical transmission lines through the Morongo Basin, on the edge of Joshua Tree National Park, and through parts of the 20,000-acre private preserve northeast of Yucca Valley. She didn't. But that was the last time Sall would be in the dark about Green Path North, a proposal by Los Angeles Department of Water and Power to move geothermal, solar and wind power to the city from the desert. k { EYE s 4vf-�'j4 t 'r. '� 1 `r •9n,ayA Six :; X "This area was set aside for conservation values for a reason," says April Sall of the PipesCanyon Preserve in San Bernardino County. "An outside entity should not be able to devastate lands 100 miles outside their jurisdiction," she says of a Los Angeles energy route through the area. Sall's movement, the California Desert Coalition, has snowballed to about 500 supporters and is one of at least four groups campaigning against the project. They say it will mar the landscape, damage property values and alter the ecosystem. 141 e f "This area was set aside for conservation values for a reason. An outside entity should not be able to devastate lands 100 miles outside their jurisdiction," said Sall, a former National Park Service biologist whose grandmother homesteaded in Pipes Canyon a century ago. I. Residents, tourists and business owners in Oak Glen, the Ipple-growing hamlet east of Yucaipa, fear the project would put transmission towers afmong the hilltops that surround the community. i A postcard-writing campaign at the height of apple-growing season generated 35,000 postcards to LA Mayor Antonio Villaraigosa urging him to opt for a different path, said organizer David Myers of The Wildlands Conservancy, ohe of the groups. I In the next couple of weeks, The Wildlands Conservancy'will launch the first of 100 billboards -- a$400,000 campaign -- asking Villaraigosa not to destroy the land, Myers said. The conservancy is an Oak Glen nonprofit group that acquires and preserves open space for public use, including Pipes Canyon. + In addition to the postcards and a letter-writing campaign to Villaraigosa and legislators, activists have held an art contest and public meetings, made T-shirts and created a short film to show at community meetings. 1 I TRANSMISSION ROUTES:omayartosaraeraneanbfrinpedouerower�or�ncwtranu,;,ekxi„u.rncmy rrnexsae emryytr«n[nc court. "� i P '�.. to�rrtuenssarm" s . S �t Y tl `/ YIGYLfOyff � I _ aftldl�m@ _ �`' " �"- DermnSwsUikal 'Ka>silm ruaamc 'i !tbrtil6. 'm ��py�pgfq _ .4- EwOtlLMn'. rPab ,_4'•, xr't.' 'J Gtcal Pit6NOlin Plrial � iod , •.,h`""�=- � t�PoULptxwnaxbn rtlttl •ut n QsikW SlAa:muclut[L^utvn:nrlrtef4'+fmEtxT�6nn;f+.vn saVt StR65[cON[9 142 i NEW TO ACTIVISM The Web site of one of the groups, the Alliance for Responsible Energy Policy, publicizes photographs of a DWP helicopter descending on the desert with a survey crew. The group asks property owners to help them locate the markers so they can plot the route to see which areas will be affected. Most recently, the Coachella Valley Coalition was formed by Desert Hot Springs City Councilman Russell Betts to fight the project. Some of those involved in the Green Path opposition are veteran activists, but many have never been so dedicated to a cause. "It is the epitome of a grass-roots battle," said Mike Cipra, California desert program manager for the private National Parks Conservation Association and a Green Path opponent. ,On a lot of levels there are some environmental justice issues -- communities here would have to bear the environmental cost of a project they don't receive any benefits for-- and that has really galvanized the community." When Sall began working against Green Path, one of the first people she called was Ruth Rieman, then president of the Morongo Basin Conservation Association, a group that opposes housing tracts and filed a lawsuit to block construction of a Super Wal-Mart in Yucca Valley. Rieman and her husband, Steven, a sculptor, have lived along the sandy edge of Pipes Canyon near Landers for 30 years. Looking west from their 10 acres, they see the lumpy, bleached rocks of the Sawtooth Mountains surrounding Pioneertown, the backdrop of numerous 1940s Western movies. When the Riemans retreated to the desert from Orange County 30 years ago, they were avid dirt-bikers. But it wasn't long before they sold their motorcycles and began appreciating the views on foot. "We learned the land and its vegetation and habitat ... were fragile," said Rieman, whose essay about her revelation was published in the Sierra Club magazine. "It was that whole discovery of what you're responsible for. Everybody makes a footprint; you just try to keep it small." 143 4. 'x ddd lL S 00 F 6:. Ruth Rieman, left, and Steve Rieman hike every day around Pipes Canyon, which they say is threatened by the Green Path North Proposal. DejA vu The proposed route for Green Path North traverses hilltops along Highway 247 in the Riemans' Flamingo Heights neighborhood, en route to an electrical substation in Hesperia. I i "If we looked west from our property, we would see it on the flat tops just east of the San Bernardino Mountains," she said. When Rieman heard about Green Path, it was dejA vu, she said. The Morongo Basin Conservation Association was formed in 1969 to fight Southern California Edison's proposal for transmission lines through the Morongo Basin. 1 "I said, 'Oh my God, not again,' " Rieman remembers saying. "It took my breath away. I knew how protracted that process had been." i The California Public Utilities Commission eventually ruled against the Edison project, but it took 11 years. i Most of the land in the DWP's Green Path North project is controlled by the U.S. Bureau of Land Management; about 30 miles of the route is on private property. The BLM manages most public land in the desert. i Rieman, like most others on her side of the fight, wants DWT to use an existing power corridor along Interstate 10, rather than cutting what they say would be a 2- to 5-mile swath through virgin desert. Nahai, of the DWP, said the path with be 200 feet to 330 feet wide. i144 i A NEW PATH Cipra, of the National Parks Conservation Association, said his group and Friends of Big Morongo Canyon Reserve are proposing that the reserve, known for its wide array of bird species, become part of Joshua Tree National Park. Under one of the five proposals laid out by DWP, Green Path would cut nearly a mile- wide swath through the 31,000-acre reserve, Cipra said. Of particular concern is Big Morongo Spring, the critical water source for migratory birds and for wildlife such as bighorn sheep and bobcats. r . r .5M IM .. � Y "�.�' „? dk. Cyt. �• j , Under one of five proposals laid out by the LA utility, the path would cut nearly a mile- wide swath through the 31,000-acre Big Morongo Canyon Reserve, a conservationist says. "These wildlife species are sensitive. They're not used to big industrial development and power lines and bulldozers," he said. "This proposal is inappropriate to an area that is that critical to park wildlife." Johnson Valley resident Jim Harvey left the California Desert Coalition to form the Alliance for Responsible Energy Policy, which promotes rooftop solar power. Harvey is a Chicago native who came to visit a friend in Johnson Valley in 2000. Less than six months later, he and his wife became full-time residents. The tight-knit community a half-hour north of Yucca Valley has a population of about 400. A Web-site designer who works from home, he wants to keep his unobstructed view of the Rodman and Ord mountains. As an alternative to projects like Green Path, Harvey's group promotes legislation that would allow residents to generate extra solar energy that they could sell back to.utility companies for credit. 145 i "We're determined to affect the energy policy course, notonlyin California but the nation," he said. "We can do this the right way or we canPdo this the wrong way. "So far, we're doing it the wrong way." j i Reach Janet Zimmerman at 951-368-9586 or kimmerman@PE.com i 1 i a i i i 1 fi i I 146 a 44 AZUSA u¢nr a wnv INFORMATION ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: JANUARY 26, 2009 SUBJECT: REPORT OF GARNET WIND ENERGY PRICE HEDGING TRANSACTION At October 27, 2008 Utility Board meeting, the Board authorized the staff to engage in multi- year price hedging transactions for Garnet Wind Project within certain pre-established guidelines for the purpose of hedging the energy price risk of Garnet Wind resource. Given the favorable energy market conditions, staff engaged in a hedging transaction on December 24, 2008. Staff is hereby providing a report of the hedging transaction as required by the established guidelines as follows: Transaction Counternarty: Shell North America i Authorized Staff: Assistant Director of Resource Management in consultation with the Director of Utilities Transaction Duration: Four-year transaction which commences on March 2009 and ends on October 2012, consistent with Board's authorization Allowable Transaction Monthly volumes are as specified in the attached Volumes: spreadsheet. The volumes are the estimated monthly Garnet Wind generation i Trigger Prices: The price hedges are as specified in the attached spreadsheet. The average four-year hedged price is $70.79/MWh which is less than the not-to-exceed authorized trigger of$85/MWh. It is also less than the projected Garnet Wind energy price of$75/MWh when the contract was signed in September, 2007 Frequency of Trigger: Staff will not trigger any additional hedging transaction for Garnet Wind before December 24, 2009 unless explicitly authorized by the Utility Board 147 It is noted that with this transaction, the city saved about $75,000 per year in comparison to the projected energy price of $75/MWh when the contract was signed in September 2007. Further, the city saved about $510,000 per year in comparison to the prevailing energy price of more than $100/MWh for renewable energy if the same contract is signed today. Given these facts, staff believes the objective of hedging Garnet Wind energy prices for the first four years of the contract has been achieved. Prepared by: Bob Tang;Assistant Director of Resource Management e1il: Garnet Wind Gas Hedges.xis . 148 r� T_ i' ! i SWAP OPTION - PUT OPTION 2009 Mar 20,000 - $6.41- $128,200 $5.00 r-:"So.30 $6,000 Apr 20,000 :$6.30 $126,000 $5.00 -.' x$0:30 $6,000 May 30,000 - $6.46- $194,400 $5.00 400 28 $8,400 Jun 30,000 -; , $6:60 $198,000 $5.00 x.$0:30 $9,000 Jul 20,000 "< $716 $143,200 $5.00: 1."_$0.25 $5,000 Aug 20,000 $7.40 $148,000 $5.00 -.,.'$0:25- $5,000 Sep 20,000 '$7.18 $143,600 $5.00'` _-. .10:32 $6,400 Oct 15,000:.-"$6.79- $101,850 $5.00 `"'$0,42 $6,300 175,000:: 'D:$6.76- $1,183,250 Wavg 0.30 $52 I,100 i 17,500 $67.61 - $2.98 Effective Price= $70.59 2010 ; Mar 20,000- '. :$6:80 $136,020 $4.75 $0) $9,400 Apr 20,000 $6.18 $123,684 $4.75 -- $0.53 $10,600 May 30,000 ' $5.97 $179,226 $4.75 _$0.58 $17,400 Jun 30,000 : $6.25 $187,476 $4.75 $0.52 $15,600 Jul 20,000 '$6.64 $132,884 $4.70 '$0.45 $9,000 Aug 20,000 . '$6.73 $134,684 $4.70 .:$0.46 $9,200 Sep 20,000- ;$6:65 $132,984 $4.70 - :$0.51 $10,200 Oct 15,000 -$6.44 $96,588 $4.70 $0:59 $8,850 175,000 :$6.42 $1,123,546 • Wavg WHjL0.52_ w$9Q250 17,500 $64.20 $5.16 Effective Price= $69.36 201.1 �#ras: .•srxr �,' +,'OONEu Mar 20,000: $7.11 $142,290 $4.70 -._$0.47 $9,400 Apr 20,000 ',$6.43 $128,610 $4.65 : .$0.51 $10,200 May 30,000 '•,'i-:$6.32, $189,615 $4.70,: -$0.54- $16,200 Jun 30,000 "y `$6.39; $191,715 $4.65' _,•$0:51 $15,300 Jul 20,000` •=`$6.84 $136,710 $4.55 ':`:"$0:42: $8,400 Aug 20,000- ;$6.91 $138,110 $4.55 '--.$0.42 $8,400 Sep 20,000 '$6.93, $138,610 $4.55. - =,_-$0.45 $9,000 Oct 15,000 $6:84 $102,608 $4.60 $054 $8,100 1 175,000. ':$6.68 $1,168,266 -Wavg 0:49: $85p00 I 17,500 $66.76 $4.86 Effective Price= $71.62 - 2012 -�^- ^a"x3K & `f.."y`' .DONE -s.��-:� � �W.y.�:�_.izyr..�. a_•a.;e Mar 20,000 .''$7.20 $144,000 $4.65 -" .$0.49 $9,800 Apr 20,000 ?$6.32 $126,400 $4.65 '$0:56 $11,200 May 30,000-:: :::$6:27, $187,950 $4.70.`._-.$0,59 $17,700 Jun 30,000 - .$6:36 $190,650 $4.70 . .3$0:57 $17,100 Jul -20,000-.: :$6.74 $134,700 $4.65.. "$0:50 $10,000 Aug 20,000-=": -$6.82. $136,400 $4.60 ". 50.49- $9,800 Sep 20,000. :$6.84 $136,800 $4.60- Z $0.51' $10,200 Oct 15,000 - $6.76 $101,400 $4.60 - - $0.57 $8,550 1 175,000 '$6.62 $1,158,300 ,-Wavg 0.54 $94;350 I 17,500 $66.19 Effective Price= $71.58 AVERAGE PRICE_ $710.79 1 149 Scientists spot La Nina: Dry year ahead - SGVTribune.com Page 1 of 2 Oribune CW s. Scientists spot La Nana. brings warm ocean temperatures to the Pacific coast of Soutti America, dry weather to the Dryy year ahead Midwest, and heavy rain to the Southwest. With La Nina,which brings colder-than-normal By Dan Abendschein,Staff Writer ocean temperatures to the Pacific, Southern California gets dry weather, while the Midwest LA CANADDAA FLINTRI Posted:O'1!7 (16:0 RI PM PSTDGE -Scientists at JPL on and the Pacific Northwest get all the rain and Monday said they've detected a La Nina oceanic snow. effect that typically signals a warmer, drier "Basically, it just steers the jet stream further winter. north,'Willis said. The Pacific weather pattern that occurs every The drywealonger-term ther locally is part of a few years will bring another unusually dry winter Weather effect, called the Pacific a ! to Southern California, said Josh Willis, a oceanographer and climatologist at the Jet Oscillation, said Willis. Right now,the country's Propulsion Laboratory in La Canada Flintridge. entire Southwest is locked in a pattern of dryweather. 'With weather, it is always a roulette table,"he Of the last 10 Southern California winters, eight said. "But it does look like we are in for drier weather." have been dry,we only with 2004 and 2005 thetwo wet years. No storms are forecast in the National Weather Those years of drought have been troublesome Service's 10-day weather outlook,Willis added. for Los Angeles County's Metropolitan Water The early winter storms of December gave District,which gets most of its water from the Southern California a boost, providing above- Northern California snowpack and the Colorado average rainfall for the season, right up until the River, i last storm hit around Christmas, said Willis. 1 The MWD is already been anticipating a dry But conditions have dried considerably since winter this year, said Bill Muir,spokesman. then - now the rainfall amount is about an More concerning for the agency, he said, is a average for this time of year, he said. state court ruling that mandates a cut in water La Nina has the opposite effect on Southernuse from the Sacramento River delta to protect California as EI Nino, a weather pattern that the endangered delta smelt fish. Advertisement I =j f PrinterStitialo ads by Format Dynamics. Print Powlered By i Dynarnics 1 http://www.sgvtribune.com/ci_11440157?source=rss 1/13/2009 150 Scientists spot La Nina: Dry year ahead - SGVTribune.com Page 2 of 2 sgy ribune,com :, Because of that ruling, MWD may have to set restrictions on county cities that purchase its water,which includes most of the cities in the San Gabriel Valley, Muir said. Still, another dry winter doesn't help, he said. 'We've been looking at a worse-case scenario, and it looks like that is what we are facing now," said Muir. dan.abendschein@sgvn.com (626) 962-8811, Ext. 4451 Advertisement r ._ � � Printer5htialm ads by Format Dynamics. :� v + : Dynamics' Print Powered By r �yrtamics' http://www.sgvtribune.com/ci_11440157?source=rss 1/13/2009 15� t Test of snow pack shows some improvement in water supply - SGVTribune.com Page 1 of 2 • •une.corncaw Test of snow pack shows end. some Improvement in What he found by measuring and weighing the snow depth is that the snow that has so far water supply fallen in that area is the equivalent of approximately 10 inches of water-about 83 percent of the average for this time of year. Last By Rebecca Kimftch,Staff Writer year at this point,snow pack was at about 60 Posted:12130/2008 05:54:27 PM PST percent. Throughout the state,precipitation is California's mountains from south to north may about 80 to 90 percent of normal, according to be capped with beautiful white snow, but so far DWR senior meteorologist Elissa Lynn. it's looking like the state will face its third consecutive dry year. Snow pack measurements are necessary to help officials determine how much water can be The results of the state's first measurement of delivered to Southem California. Earlier this year, snow pack this season are an improvement over officials said they could only deliver 15 percent last year,officials said Tuesday.However,they of requested amounts. don't promise enough water to secure water ' supplies and neither do long-term weather Two years of drought have left state reservoirs forecasts released Monday. at half what they should be. Despite storms that hit the state before Though this year is looking better,the National Christmas, officials are once again urging Oceanic and Atmospheric Administration (NOAA) conservation and threatening water rationing. announced Monday that La Ni a is back, meaning the Pacific will be colder than normal and rain Like many people Tuesday morning, Frank and snow fall could end abruptly by March, Lynn Gehrke threw his skis in his truck and headed for said. the hills. He was greeted by sunshine,45-degree weather, and exactly 41 inches of snow pack. 'We are worried we will have our third dry year if this happens,"she said. Gehrke is the state's chief snow surveyor for the Department of Water Resources. His trip to the Southern California gets approximately 30 Sierras took him to the department's Phillips percent of its water from the Sierras.That supply Station, 90 miles east of Sacramento near South has been slashed not only by drought, but also by Lake Tahoe,at 6,800 feet.There he plunged into recent regulatory decisions meant to prevent the the snow an aluminum tube about 1.5 inches in environmental collapse of the Sacramento-San diameter,with a sharpened steel cutter on one Joaquin River Delta.The delta serves as the Advertisement S "ribune.com (800) 788-1200 SAN GABRIEL VALLEY _ Subscribe today! � . FW Ioclbl wwwsgvtribune.com/subscribe Print Powe red By 01 Qyr»rT.i.,s http://www.sgvtribune.ccm/ci_11339259?source=email 12/31/2008 152 Test of snow pack shows some improvement in water supply - SGVTribune.com Page 2 of 2 epicenter of California's water delivery system- pumping northern water south. Decisions by the Fish and Wildlife Service this month and Judge Oliver Wanger last year to protect native fish by reducing pumping in the Delta could each reduce water deliveries by 20 to 30 percent. To make up for the shortfall, Southern California has had to increasingly rely on local water sources. "We know some areas have already found alternatives, and gone to their reserves,and those reserves may be running out. If we don't end up with more precipitation in Northern California, if we have a third dry year,we are going to end up with a supply crisis,"Lynn said. The Main San Gabriel Basin Watermaster,which is responsible for managing groundwater in the Main San Gabriel Basin,has already asked cities to cut water demand by 20 percent. The Watermaster won't know until next week the effects of recent rain and snow on groundwater levels, but director Carol Williams said she certainly hopes there is more to come. "If that is all we have to look forward to,we are going to see a big push for more conservation," she said. - rebecca.kimitch@sgvn.com (626)962-8811, Ext.2105 Adverfls ment szvtribunexom (800) 788-12®0 SAN GABRIEL VALLEY Subscribe today -- '"" toobal� wwwsgvtribune.com/subscribe Print Powered By rd DVriamie;s http://www.sgvtribune.com/ci_11339259?source=email 12/31/2008 153