HomeMy WebLinkAboutAgenda Packet - March 23, 2009 - UBAZUSA
IIOXT t'M1'ATfR
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD/AZUSA CITY COUNCIL
JSA LIGHT & WATER MARCH 23, 2009
N. AZUSA AVENUE 6:30 P.M.
JSA, CA 91702.
AZUSA UTILITY BOARD
ANGEL A. CARRILLO
CHAIRPERSON
E. MACIAS JOSEPH R. ROCHA
CHAIRPERSON BOARD MEMBER
3ANKS ROBERT GONZALES
MEMBER BOARD MEMBER
i: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
ELECTION OF OFFICERS
Select and approve by majority vote the election of Utility Board Chairperson and Vice Chairperson to
serve as officers of the Utility Board.
U
Election of
Offioers.pdf
001
B. 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.)
C. 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.
Minutes. Recommendation: Approve minutes of regular meeting on February 23, 2009 as written.
UB Min Feb 23.pdf
2. Approval of Purchase of Bucket Truck for Electric Division. Recommendation: Approve the
purchase of 55" insulating aerial truck from Truck Hydraulic Equipment Company of Fontana, California,
in the amount not -to- exceed $301,665.69 including sales tax.
55 Aedal Truck pdf
3. Authorization to Seek Bids for Project W-263. Recommendation: Authorize the advertisement for
and solicitation of bids for Project W-263, Water Main Cement Relining Project in various -streets in the
cities of Azusa, Covina, West Covina, and Los Angeles County.
Cernent Relining
Project W-263. pdf
4. Approval of Contract for Proiect W-265. Recommendation: Approve the awarding of contract for
consultant design services for Project W-265, Pipeline Replacement Project in Cities of West Covina and
Covina, to Hall & Foreman Incorporated in amount of $99,800 (including $16,800 for survey).
2U
71
Pipeline Replant
W-265-Attachrrent.p
Design W-265.pdf
df
1002
I
Approval of Contract for Proiect W-266. Recommendation: Approve the awarding of contract for
consultant design services for Project W-266, Pipeline Replacement Project in Cities of Azusa and West
Covina, to RBF Consulting in amount of $113,414 (including $29,106 for survey and $6,018 for bid
services).
Approval of Request for Proposal for Proiect WV -262 Inspection Services. Recommendation:
Authorize staff to solicit proposals from qualified consultants to provide inspection services for Project
WV -262, Water Main Replacement Project in Rowland Avenue in West Covina.
.«
Plperme Replant
W-266-Attachrnent.p
Design W-266. pdf
df
Approval of Request for Proposal for Proiect WV -262 Inspection Services. Recommendation:
Authorize staff to solicit proposals from qualified consultants to provide inspection services for Project
WV -262, Water Main Replacement Project in Rowland Avenue in West Covina.
Approval of Second Addendum to Option Settlement Agreement Between Northrop Grumman,
Cemex, Azusa Land Reclamation and the City of Azusa. Recommendation: Approve Second
Addendum to Option Settlement Agreement Between Northrop Grumman, Cemex, Azusa Land
Reclamation and the City of Azusa; and authorize the City Manager to sign on behalf of the City.
.«
RFP for Insptn Svc '
Ur RFP. pdf
WV-262.pdf
AddmAgrrt. pdf
Approval of Second Addendum to Option Settlement Agreement Between Northrop Grumman,
Cemex, Azusa Land Reclamation and the City of Azusa. Recommendation: Approve Second
Addendum to Option Settlement Agreement Between Northrop Grumman, Cemex, Azusa Land
Reclamation and the City of Azusa; and authorize the City Manager to sign on behalf of the City.
Authorization to Procure San Juan Outage Insurance Coverage. Recommendation: Authorize staff
to procure an outage insurance coverage for San Juan Unit 3 for the coverage period commencing July 1,
2009 through June 30, 2010 at a cost -not -to -exceed $100,000 and subject to credit worthiness check of
the insurer.
SJ Insurance
Policy. pdf
Approval of Purchase of Water Treatment Plant (WTP) Office Furniture. Recommendation:
Award the purchase of WTP office furniture for the plant operations and management building to Office
Furniture Group (OFG) in amount of $24,996.10 including tax and delivery.
t.
Office Furniture
Purch. pdf ,
003
.«
Addendum
Attachrtent-2nd
w-ALR.pdf
AddmAgrrt. pdf
Authorization to Procure San Juan Outage Insurance Coverage. Recommendation: Authorize staff
to procure an outage insurance coverage for San Juan Unit 3 for the coverage period commencing July 1,
2009 through June 30, 2010 at a cost -not -to -exceed $100,000 and subject to credit worthiness check of
the insurer.
SJ Insurance
Policy. pdf
Approval of Purchase of Water Treatment Plant (WTP) Office Furniture. Recommendation:
Award the purchase of WTP office furniture for the plant operations and management building to Office
Furniture Group (OFG) in amount of $24,996.10 including tax and delivery.
t.
Office Furniture
Purch. pdf ,
003
f
10. Approval of Additional Reimbursable Compensation for Civiltec Engineering Incorporated.
Recommendation: Approve the reimbursable addition of $20,000 to Civiltec Engineering Incorporated
contract for continued inspection services on the Rosedale Water Reservoirs and Pump Stations project.
CNUrec-Rosedale.pd
f
D. STAFF REPORTS/COMMUNICATIONS
1. Monthly Update on Water Treatment Plant
Rpt-WTP.pdf WTP_Mar_Update.p
df
2. Drought Update/SWP Allocation Announcement (Verbal) V
3. Report on APPA Legislative Rally V
2
APPA legtslatNe
ra0y.pdf
4. Update on CAISO New Markets (verbal) f
5. Quarterly San Juan Fuel Cost Adjustment
Rpt San Juan Attachment SJ FCA
FCA. pdf Q2_09.W
6. Multi -Year Summer Peaking Electric Power Procurement V
Rpt-Pkg Pwr Attachment. pdf
Purch.pdf
4 004
Update on Compliance with State Recycling Mandates for 2007
Imo„
AB 939 -SB 1016
Report.pdf
DIRECTOR'S COMMENTS
Consideration of sponsorship of Gladstone High School Football Team in amount of $200 for equipment,
etc. (Verbal)
Consideration of sponsorship of Gladstone High School Cheer Program in amount of $200 (Verbal)
Adjournment.
compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city
ting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the
ting or time when special services are needed will assist staff in assuring that reasonable arrangements
be made to provide access to the meeting. "
compliance with Government Code Section 54957.5, agenda materials are available for inspection by
fibers of the public at the following locations. Azusa City Clerk's Office - 213 E. Foothill Boulevard,
Fa City Library - 729 N. Dalton Avenue, and Azusa Light & Water -729 N. Azusa Avenue, Azusa CA. "
005
AZUSA
ant a w,rrr
ELECTION OF OFFICERS
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: MARCH 23, 2009
SUBJECT: ELECTION OF OFFICERS
RECOMMENDATION
It is recommended that the Utility Board/City Council elect by majority vote a Chairperson and Vice
Chairperson to serve as officers of the Utility Board.
BACKGROUND
The Utility Board was formed in May 2001 pursuant to ordinance 01-03, which was later amended by
ordinance 01-07. The Utility Board is composed of City Council Members acting as Utility Board
Members, with the Director of Utilities serving as executive advisor to the Board. The Utility Board
meets monthly on the fourth Monday of each month in the downstairs conference room at Azusa Light
& Water offices to conduct business related to the City's electric and water utilities, and solid waste
collection services.
Section 2-415 of Azusa Municipal Code requires the Utility Board to elect a Chairperson, Vice
Chairperson, and a Secretary annually no later than the second meeting following appointment of the
Mayor Pro Tem of the City Council. The functions of Secretary are delegated to the City Clerk.
Board Members initiate election process by nominating officers and then voting for nominees.
FISCAL IMPACT
There is no fiscal impact of electing officers.
Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities
I
Al
r�
AZUSA1168T
CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY, FEBRUARY 23, 2009 — 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. Call to Order
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS
ABSENT:: BOARD MEMBERS: ROCHA
ALSO PRESENT: Also Present
City Attorney Ferre, City Manager Delach, Assistant City Manager Makshanoff, Director of Utilities Hsu,
Assistant to the Utilities Director Kalscheuer, Chief of Police Garcia, Electrical Engineer Langit, Director of
Recreation and Family Services Jacobs, Assistant Community Development Director McNamara,
Administrative Services Director -Chief Financial Officer Kreimeier, Library Director Tovar, City Clerk
Mendoza, Deputy City Clerk Toscano.
Public Participation Pub Part
Mr. Jorge Rosales addressed the Board Members asking that item regarding the Pro -forma Western Systems J. Rosales
Power Pool Agreement, be made available for public review at the Library and expressed concern regarding Comments
the cost for the Emergency Generator for the water treatment plant, that staff will request a waiver of the
permit from AQMD.
The CONSENT CALENDAR consisting of Items B-1 through B-12, was approved by motion of Board Consent Cal
Member Hanks, seconded by Board Member Gonzales and unanimously* carried. Staff asked to address item Appvd B -4—
B-4
B-4 for amendment and it was considered under the Special Call portion of the Agenda. In item B4 the phase Spec Call
"liquidated damage" was changed to "backcharge".
1. The minutes of the regular meeting of January 26, 2009, were approved as written. Min appvd
2. Approval was given for the pro -forma WSPP Agreement and addendums with Morgan Stanley Capital WSPP Agmt
Group and the Mayor was authorized to execute agreement. Approved
007
3. The contract for furnishing, installing, and refurbishing the existing chain link fence at Azusa Substation
Pacific
was awarded to Pacific Industrial Electric in amount not -to -exceed $126,936.
Industrial Elect
4. The Notice of Completion for Project W-245 Water Main Replacement in First, McKinley, Paramount,
NOC
Roosevelt and Virginia Streets, Barbara Drive, and an Alley West of Barbara Drive in the City of Azusa,
Miramontes
from Miramontes Construction Company, Incorporated, was accepted and the City Clerk was directed to
Construction
execute NOC and have same recorded at the Office of the Los Angeles County Recorder; authorization
Addition
was given to withhold $3,800 in back charge from retainage amount and final payment to Contractor.
Approval was give for the advertisement for and solicitation of bids for Project WV -262 Water Main
5. The Notice of Completion for Project W-245A&B, Water Main Replacement Project in Sunset Avenue NOC John T.
in Azusa and Vincent Avenue in West Covina, A&B from John T. Malloy Incorporated, was accepted Malloy Inc
and the City Clerk was directed to execute NOC and have same recorded at the Office of the Los Angeles
County Recorder.
6. The Notice of Completion for Project W-238, Water Main Replacement Project Group 2: Cypress and NOC DeSigio
Sunset Streets in West Covina, from J DeSigio Construction, Incorporated was accepted and the City Construction
Clerk was directed to execute NOC and have same recorded at the Office of the Los Angeles County
Recorder; and 2) authorize withholding of $43,000 in liquidated damages from retainage amount and
final payment to Contractor.
7. Acceptance of Easement from WC Homes, LLC for Water Mains and Services at Tract 62346 in West Accept Esmt
Covina. The following resolution was adopted and the City Clerk was authorized to file easement with WC Homes,
Office of the Los Angeles County Recorder: LLC
A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA Res. 09-C21
ACCEPTING A CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING Grant of Esmt
THEREOF.
8.
Approval was given for the addition of $3,800 to Wren and Associates, Incorporated contract for
Wren & Assoc.
Amend CIP
inspection services of Project W-245, Water Main Replacement in First Street Et. Al. in Azusa.
Addition
9.
Approval was given for the addition of $5,900 to SA Associates contract for inspection services of
SA Associates
Project WVF-243, Water Treatment Plant Water Main and Sewer Force Main Installation.
Addition
10.
Approval was give for the advertisement for and solicitation of bids for Project WV -262 Water Main
Solicit Bids
Replacement in Rowland Avenue in West Covina.
Prj WV -262
11.
Approval was given for Change Order No. 14 for additional compensation of $93,005.85 to SSC
Change Order
Construction Incorporated contract for construction of Project WVF-207.
SSC Construct.
12.
Approval was given for the amended and restated water supply agreement with Miller Coors LLC.
Wtr Agmt
Miller
SCHEDULEDITEM
Sched Items
Approval of Budget Amendment for Canyon Filtration Plant Project for Obtaining an Operating Permit for Budget Amend
Emergency Generator. After lengthy discussion the following was approved: Operating
Permit Emer
Board Member Hanks offered a Resolution entitled: Gen
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AMENDING
Res. 09-C22
THE FISCAL YEAR 2008-2009 CAPITAL IMPROVEMENT PROGRAM BUDGET FOR THE WATER
Amend CIP
UTILITY TO AUTHORIZE APPROPRIATIONS NECESSARY TO OBTAIN PERMIT FROM SOUTH
Operating
COAST AIR QUALITY MANAGEMENT DISTRICT TO OPERATE A DIESEL POWERED BACKUP
Permit WTP
GENERATOR AT WATER TREATMENT PLANT.
02/23/09 PAGE TWO
M .,
jt{
Moved by Board Member Hanks, seconded by Board Member Macias to waive further reading and adopt.
Resolution passed and adopted by the following vote of the Board Members:
AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: ROCHA
STAFF REPORTS/COMMUNICATIONS Staff Rpts
Director of Utilities Hsu provided the Monthly Update on Water Treatment Plant. He advised that the State Monthly WTP
Water Officials have requested a 20% voluntary reduction across the board from the State of California. The Update
Federal Agency that normally supplies water to the Central Valley will not supply any, due to less production
and less employment. He responded to questions posed.
Director of Utilities Hsu presented the Delta Vision Committee Implementation Report and the Legislative Dir of Util
Update and responded to questions posed from Board Members. Delta Vision
Committee
DIRECTOR'S COMMENTS
Dir Cmts
Discussion was held regarding the AB32 and SB 375, Greenhouse Gas Bills. Discussion
Moved by Board Member Macias, seconded by Chairman Carrillo and unanimously* carried to adjourn. Adjourn
TIME OF ADJOURNMENT: 7:05 P.M.
SECRETARY
NEXT RESOLUTION NO. 09-C23.
PAGE THREE
ME
I r.nr a
AZUaS•errA
r
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: MARCH 23, 2009
SUBJECT: PURCHASE OF A FIFTY FIVE FOOT INSULATING AERIAL TRUCK
RECOMMENDATION
It is recommended that Azusa Utility Board/City Council approve the purchase of a fifty five
foot Insulating Aerial Truck, and issuance of a purchase order to Truck Hydraulic Equipment
Company of Fontana, California, in the amount not to exceed $301,665.69 including 8.25% sales
tax.
BACKGROUND
The Electric Division has identified the need to replace an aging insulating aerial truck. An aerial
truck,is crucial for the operations of the Electric Division for working on high voltage lines and
equipment mounted on power poles. The most important function of the aerial truck is
responding to emergencies such as power lines burned down on the ground causing danger to the
public. The aerial truck needs to be ready to go at a moments notice. The existing aerial truck is
14 years old and has become unreliable and requires excessive maintenance.
Pursuant to Azusa City Council Resolution No. 00-C35, adopted on March 20, 2000,
establishing a policy for incorporating alternative fuel vehicles into its light, medium, and heavy
duty fleets, this vehicle will be equipped with a compressed natural gas (CNG) engine. A formal
bid opening was held in the City Clerk's office on 2/11/09 at 10:00 AM. Four bids were received
all of which included the Cummins ISLG 300 CNG engine. The results are listed on next page.
1 1,
Vendor
Truck Hydraulic Equip. Co.
Altec Industries, Inc.
Terex Utilities, Inc. Bid 2
Terex Utilities, Inc. Bid 1
FISCAL IMPACT
Location Total Cost
Fontana, Ca
$301,665.69
Dixon, Ca
$309,078.65
Tigard, Oregon
$321,644.31
Tigard, Oregon
$328,636.18
The purchase amount of $301,665.69 will be funded from approved Electric Operations Budget
account # 33-40-733-920-7135.
Prepared by: Dan Kjar, Electric Operations Supervisor/
DMR
Oil.
C013 .
AZUGHT USA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: MARCH 23, 2009
SUBJECT: AUTHORIZATION TO SEEK BIDS FOR THE INSTALLATION OF PROJECT
W-263, WATER MAIN RELINING PROJECT IN VARIOUS STREETS IN THE
CITIES OF AZUSA, COVINA, WEST COVINA, IRWINDALE AND LOS
ANGELES COUNTY.
RECOMMENDATION
It is recommended that the Utility Board/City Council authorize the advertisement for, and
solicitation of bids for Project W-263, Water Main Cement Relining Project in various streets in
the Cities of Azusa, Covina, West Covina, Irwindale, and Los Angeles County.
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 in this project have both leak problems requiring constant repair and deliver less flow
than is optimal for current residential area standards. As a part of this program, this project
involves relining the leaking pipelines rather than replacing them. This project will allow the
Water Division to lessen the probability of leaks without trenching in the streets and should be
more economical than replacing the pipelines. In all, approximately 34,467 linear feet of water
main ranging in size from 4 inch to 20 inch diameter will be relined in the cities of Covina, West
Covina, Irwindale and Azusa. Although cement lining is specified for this project, alternative
pipe relining technologies will be considered with lowest price the main criterion for selection.
Bid documents are available at the 2nd floor office of Azusa Light & Water at 729 N. Azusa
Ave., and at the Library at 729 N. Dalton.
FISCAL IMPACT
There is no fiscal impact of bidding this project. Following bidding, fiscal impacts will be
reported along with funding sources.
Prepared by: Chet Anderson, Assistant Director- Water Operations
012
C40.
qh
AZUS.ANAM
CONSENT CALENDAR
TO: • HONORABLE MAYOR AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE$l �
DATE: MARCH 23, 2009 N
SUBJECT: AWARD OF CONTRACT FOR CONSULTANT DESIGN SERVICES FOR
PIPELINE REPLACEMENT PROJECT W-265
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the award of contract for
consultant design services in the amount of $99,800 (incl. $16,800 for survey) for Pipeline
Replacement Project W-265 to Hall & Foreman, Inc.
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 in these projects have both leak problems requiring constant repair and deliver less flow
than is optimal for current residential area standards.
ALW solicited proposals from experienced civil engineering consultants to design one or both of
two waterline replacement improvements to the Azusa water system:
Project NO: 1 (W-265) included pipelines in the Cities of West Covina and Covina;
Project No. 2 (W-266) included pipelines in the Cities of Azusa and West Covina.
Nine proposals were submitted for each project. The consultants submitting proposals for project
W-265 (Standardized to100% complete Plans and Specs) were as follows:
1. IKE $82,560 140 days $139.93 per hour
2. RBF $89,027 147. days $110.66 per hour
3. PARSONS BRINCKERHOFF $93,974 107 days $130.34 per hour
4. WILLDAN $87,835 140 days $132.68 per hour
5. ANDREASEN
$75,060
198 days
$121.85 per hour
6. SA ASSOCIATES
$100,000
202 days
$135.87 per hour
7. GEI .
$192,320
476 days
$115.02 per hour
8. CIVILTEC
$104,040
158 days
$106.82 per hour
9. HALL & FOREMAN
$83,000
144 days
$128.09 per hour
013
The above proposal costs are adjusted to reflect the consultants' comparable proposed time of
completion and cost of completion to Final Submittal of 100% Complete Plans and
Specifications. The total proposal prices varied somewhat from one consultant to another.
Submittals were compared as to scope, experience, cost, completion time, hours estimated and a
comparative cost per hour. A comparative chart is attached to this staff report.
FISCAL IMPACT
The fiscal impact of this consulting contract is $99,800 which will be funded through existing
approved budget using account number 32-80-000-721-7130/72107B-7130.
Prepared by:
Chet Anderson, Assistant Director - Water Operations
014
Project 1 W-265
Consultant
Time frame
Start date
Completion
Manhours
Total Cost
Cost per manhour
Days
of Design
1 IKE
140
3/22/2009
8/9/2009
590
$82,560.00
$139.93
2 RBF
147
3/2/2009
7/27/2009
804.5
$89,027.00
$110.66
3 PARSONS
107
4/6/2009
7/22/2009
721
$93,974.00
$130.34
4 WILLDAN
140
662
$87,835.00
$132.68
5 ANDREASEN
198
4/1/2009
10/16/2009
616
$75,060.00
$121.85
6 SA ASSOC
202
4/1/2009
10/20/2009
736
$100,000.00
$135.87
7 GEI
476
4/6/2009
7/26/2010
1672
$192,320.00
$115.02
8 CIVILTEC
158
3/19/2009
8/24/2009
974
$104,040.00
$106.82
9 HALL & FOREMAN
144
648
$83,000.00
$128.09
O
F-.
CA
AZUSA
LIGHT l RATER
CONSENT CALENDAR
TO: HONORABLE MAYOR AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: MARCH 23, 2009
SUBJECT: AWARD OF CONTRACT FOR CONSULTANT DESIGN SERVICES FOR
PIPELINE REPLACEMENT PROJECT W-266
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the award of contract for
consultant design services in the amount of $113,414.00 (incl. $29,106 for survey and $6,018 for
bid services) for Pipeline Replacement Project W-266 to RBF Consulting.
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 in these projects have both leak problems requiring constant repair and deliver less flow
than is optimal for current residential area standards.
ALW solicited proposals from experienced civil engineering consultants to design one or both of
two waterline replacement improvements to the Azusa water system:
Project No. 1 (W-265) included pipelines in the Cities of West Covina and Covina;
Project No. 2 (W-266) included pipelines in the Cities of Azusa and West Covina.
Nine proposals were submitted for each project. The consultants submitting proposals for project
W-266 (Standardized to100% complete Plans and Specs) were as follows:
1.
2.
IKE
RBF
$77,580
$78,290
150 days
147 days
$140.04 per hour
$111.29 per hour
3.
PARSONS BRINCKERHOFF
$77,684
114 days
$131.22 per hour
4.
WILLDAN
$81,785
140 days
$125.82 per hour
5.
ANDREASEN
$67,260
198 days
$122.74 per hour
6.
'SA ASSOCIATES
$87,000
202 days
$142.62 per hour
7.
GEI
$213,073
476 days
$141.48 per hour
8.
CIVILTEC
$84,660
123 days
$99.60 per hour
9.
HALL & FOREMAN
$53,500
116 days
. $128.61per hour
016
The above proposal costs are adjusted to reflect the consultants' comparable proposed time of
completion and cost of completion to Final Submittal of 100% Complete Plans and
Specifications. The total proposal prices varied somewhat from one consultant to another.
Submittals were compared as to scope, experience, cost, completion time, hours estimated and a
comparative cost per hour. A comparative chart is attached to this staff report.
FISCAL IMPACT
The fiscal impact of this consulting contract is $113,414.00 which will be funded through
existing approved budget using account number 32-80-000-721-7130/72107B-7130.
Prepared by:
Chet Anderson, Assistant Director - Water Operations
017
1
2
3
4
5
6
7
8
9
a
Project 2 W-266
Consultant
Time frame
Start date
Completion
Manhours
Total Cost
Cost per manhour
Days
of Design
IKE
150
5/7/2009
10/4/2009
554
$77,580.00
$140.04
RBF
147
3/2/2009
7/27/2009
703.5
$78,290.00
$111.29
PARSONS
114
4/6/2009
7/29/2009
592
$77,684.00
$131.22
WILLDAN
140
650
$81,785.00
$125.82
ANDREASEN
198
4/1/2009
10/16/2009
548
$67,260.00
$122.74
SA ASSOC
202
4/1/2009
10/20/2009
610
$87,000.00
$142.62
GEI
476
4/6/2009
7/26/2010
1506
$213,073.00
$141.48
CIVILTEC
123
3/19/2009
7/20/2009
850
$84,660.00
$99.60
HALL & FOREMAN
116
416
$53,500.00
$128.61
C.G.
A7USA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: MARCH 23, 2009 \� f,
SUBJECT: REQUEST FOR PROPOSALS -WATER MAIN PROJECT WV -262
RECOMMENDATION
It is recommended that the Utility Board/City Council authorize staff to solicit proposals from
qualified consultants to provide inspection services for Project WV -262, Water Main
Replacement in Rowland Avenue, West Covina.
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 in these projects have both leak problems requiring constant repair and deliver less flow
than is optimal for current residential area standards. Installation of water main replacements
requires inspection to ensure compliance with design and specification requirements for the
project. This authorization to release attached letter Request for Proposals will permit staff to
gather consultants' proposals on consulting inspection services for project WV -262.
FISCAL IMPACT
The fiscal impact of this proposed study will be reported following receipt of proposals in
response to the RFP.
Prepared by:
Chet F. Anderson, Assistant to the Director of Utilities
019
March 24, 2009
Consultant
Firm.
Street Address
City, CA Zip Code
Subject: Request for Proposals to Provide Inspection Services for the WV -262 Main
Replacement Project
Dear Sirs:
Azusa Light & Water is requesting proposals for the inspection of a main replacement project to
be constructed in Rowland Avenue in West Covina. The inspection services requested by this
RFP will begin soon after the April 27, 2009 Utility Board meeting, and continue for the 90 day
construction period, to approximately July 27, 2009. Construction is allowed from Monday to
Friday between the hours of 7:OOAM to 5:00 PM though actual construction will not take all the
hours allowed. On rare occasion, weekend hours may be required. Project completion is set for
90 Calendar days after the date set in the Notice to Proceed; the contract for the project will be
awarded April 27, 2009.
A half size plan cover sheet showing the sites of the main replacements to be inspected is
included with this RFP. It is not anticipated that the contractor will have more than one crew
working at anytime. Full time inspection of the pipeline installation may be required.
In order to allow for overtime and weekend work, please base your proposed price on 110
calendar days for the contract duration.
The scope of services for the proposed inspection services includes the following.
SCOPE OF SERVICES
A. • Provide full time inspection of construction work to assure quality of construction and
adherence to specifications, drawings, and submittals. Inspection will be provided as
needed estimated to require 8 hours per day, each day the work is being executed.
Document daily work progress with written logs and photographs, as required. In the
event that the contractor uses two crews, only one inspector will be required to inspect
this project.
-1-
020
B. Manage requests for change orders by the Contractor. Provide requests for change orders
with documentation and recommendations to City for review and approval. Implement
changes as required and directed by City.
C. Maintain record drawings in the field indicating any changes in the design, materials,
dimensions, and details. Provide red lined "as -built" drawings to City.
D. Prepare a "punch list" of all items to be completed by the Contractor to obtain final
completion. Insure items are completed.
E. Arrange and conduct the final inspection and start-up coordination work with the Azusa
Light & Water crews prior to the new facilities being placed into service. Final inspection
to be witnessed by City.
F. Attend preconstruction meeting
Attached for your information is a sample City of Azusa Professional Services Agreement
Please send your letter proposal to Azusa Light & Water to be received no later than 5:00 PM,
Wednesday April 15, 2009. Please include a one page qualification sheet for the person you
intend to use as the inspector on this project if selected. Proposals may be faxed to 626-334-
3163, or e-mailed with a pdf file to the address below.
Thank you
Chet F. Anderson, P.E.
Assistant Director- Water Operations
Azusa Light & Water
Ph: 626-812-5209
e-mail: canderson@ ci.azusa.ca.us
-2-
021
CITY OF AZUSA
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this _ day of , 20_ by
and between the City of Azusa, a municipal organization organized under the laws of the State
of California with its principal place of business at 213 East Foothill Boulevard, Azusa,
California 91702-1295 ("City") and , a CORPORATION, with its principal
place of business at ("Consultant"), City and
Consultant are sometimes individually referred to as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the City on the terms and conditions set forth in this
Agreement. Consultant represents that it is experienced in providing CONSTRUCTION
INSPECTION services to public clients, is licensed in the State of California, and is familiar
with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services for the 2008-2009 Water Main
Replacement Projects , Project WV -262 project ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3. 1.1 General Scope of Services. Consultant promises and agrees to furnish to
the City all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional CONSTRUCTION INSPECTION
consulting services necessary for the Project ("Services"). The Services are more particularly
described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall
be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto
and incorporated herein by reference, and all applicable local, state and federal laws, rules and
regulations.
-3-
022-
3.1.2 Term. The term of this Agreement shall be from [_INSERT START
DATE_] to [_INSERT ENDING DATE_], unless earlier terminated as provided herein.
Consultant shall complete the Services within the term of this Agreement, and shall meet any
other established schedules. and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates: Independent Contractor. The
Services shall be performed by Consultant or under its supervision. Consultant will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Consultant retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall also not be employees of City and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other
amounts due such personnel in connection with their performance of Services under this
Agreement and as required by law. Consultant shall be responsible for all reports and
obligations respecting such additional personnel, including, but not limited to: social security
taxes; income tax withholding, unemployment insurance, disability insurance, -and workers'
compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Consultant's conformance
with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon
request of City, Consultant shall provide a more detailed schedule of anticipated performance to
meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that
certain key personnel will perform and coordinate the Services under this Agreement. Should
one or more of such personnel become unavailable, Consultant may substitute other personnel of
at least equal competence upon written approval of City. In the event that City and Consultant
cannot agree as to the substitution of key personnel, City shall be entitled to terminate this
Agreement for cause. As discussed below, any personnel who fail or refuse to perform the
Services in a manner acceptable to the City, or who are determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a
threat to the safety of persons or property, shall be promptly removed from the Project by the
Consultant at the request of the City. The key personnel for performance of this Agreement are
as follows: Name of Inspector
023
3.2.5 City's Representative. The City hereby designates Ken Godbey, or his or
her designee, to act as its representative for the performance of this Agreement ("City's
Representative"). City's Representative shall have the power to act on behalf of the City for all
purposes under this Contract. Consultant shall not accept direction or orders from any person
other than the City's Representative or his or her designee.
3.2.6 Consultant's Representative. Consultant hereby designates Name of
Consultant, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant's Representative"). Consultant's Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this Agreement.
The Consultant's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City
staff in the performance of Services and shall be available to City's staff, consultants and other
staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Consultant represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, including a City Business License, and that such licenses and approvals shall be
maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Consultant shall perform, at its own cost and expense and without
reimbursement from the City, any services necessary to correct errors or omissions which are
caused by the Consultant's failure to comply with the standard of care provided for herein. Any
employee of the Consultant or its sub -consultants who is determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat
to the safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant
and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and
in compliance with all local, state and federal laws, rules and regulations in any manner affecting
the performance of the Project or the Services, including all Cal/OSHA requirements, and shall
give all notices required by law. Consultant shall be liable for all violations of such laws and
regulations in connection with Services. If the Consultant performs any work knowing it to be
contrary to such laws, rules and regulations and without giving written notice to the City,
Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend,
indemnify and hold City, its officials, directors, officers, employees and agents free and
5
024
harmless, pursuant to the indemnification provisions of this Agreement, from any claim or
liability arising out of any failure or alleged failure to comply with such laws, rules or
regulations.
3.2.10 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.
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 I (any auto);
and (3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as
required by the State of California and Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits. no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers' Compensation and Employer's Liability: Workers' Compensation limits as required by
the Labor Code of the State of California. Employer's Liability limits of $1,000,000 per accident
for bodily injury or disease.
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 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.
025
3.2.10.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms supplied or
approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be
endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insured with respect to the Work or'operations
performed by or on behalf of the Consultant, including materials, parts or equipment furnished in
connection with such work; and (2) the insurance coverage shall be primary insurance as respects
the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall
stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage. Any insurance or self-insurance maintained by the City, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall
not be called upon to contribute with it in any way. '
(B) Automobile Liability. The automobile liability policy shall
be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be
primary insurance as respects the City, its directors, officials, officers, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's
scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its
directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors,
officials, officers, employees, agents and volunteers for losses paid under the terms of the
insurance policy which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to the City; and (B) any failure to comply with reporting or other
provisions of the policies, including breaches of warranties, shall not affect coverage provided to
the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.5 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
026
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.
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.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation
shall not exceed $ FIGURES ($ WORDS I without written approval of City's UTILITY
BOARD. Extra Work may be authorized, as described below, and if authorized, will be
compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by
Consultant. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
8
027
through the date of the statement. City shall, within 45 days of receiving such statement, review
the statement and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may
request that Consultant perform Extra Work. As used herein, "Extra Work" means any work
which is determined by City to be necessary for the proper completion of the Project, but which
the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization
from City's Representative.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred under this Agreement. All such
records shall be clearly identifiable. Consultant shall allow a representative of City during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice to
Consultant, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Consultant of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Consultant shall be compensated only for those services which have been adequately rendered to
City, and Consultant shall be entitled to no further compensation. Consultant may not terminate
this Agreement except for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided
herein, City may require Consultant to provide all finished or unfinished Documents and Data
and other information of any kind prepared by Consultant in connection with the performance of
Services under this Agreement. Consultant shall be required to provide such document and other
information within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in
whole or in part as provided herein, City may procure, upon such terms and in such manner as it
may determine appropriate, services similar to those terminated.
M41
3.5.2 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
Consultant:
City:
CONSULTANT.
CONSULTANT ADDRESS
City of Azusa
213 East Foothill Blvd.
Azusa, CA 91702-1295
Attn: Chet F. Anderson, P.E. Azusa Light & Water
Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at
its applicable address. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents & Data: Licensing of Intellectual Property. This
Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications, studies, drawings, estimates, and other documents or works of authorship fixed in
any tangible medium of expression, including but not limited to, physical drawings or data
magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be
prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require
all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license
for any Documents & Data the subcontractor prepares under this Agreement. Consultant
represents and warrants that Consultant has the legal right to license any and all Documents &
Data. Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to Consultant by
the City. City shall not be limited in any way in its use of the Documents and Data at any time,
provided that any such use not within the purposes intended by this Agreement shall be at City's
sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant in
connection with the performance of this Agreement shall be held confidential by Consultant.
Such materials shall not, without the prior written consent of City, be used by Consultant for any
purposes other than the performance of the Services. Nor shall such materials be disclosed to
10
029
any person or entity not connected with the performance of the Services or the Project. Nothing
fumished to Consultant which is otherwise known to Consultant or is. generally known, or has
become known, to the related industry shall be deemed confidential. Consultant shall not use
City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or
the Project in any magazine, trade paper, newspaper, television or radio production or other
similar medium without the prior written consent of City.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising out of or in connection with this
Agreement, the prevailing party in such litigation shall be entitled to have and recover from the
losing party reasonable attorney's fees and all other costs of such action.
3.5.6 Indemnification. Consultant shall defend, indemnify and hold the City, its
officials, officers, employees, volunteers and agents free and harmless from any and all claims,
demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to
property or persons, including wrongful death, in any manner arising out of or incident to any
alleged acts, omissions or willful misconduct of Consultant, its officials, officers, employees,
agents, consultants and contractors arising out of or in connection with the performance of the
Services, the Project or this Agreement, including without limitation the payment of all
consequential damages and attorneys fees and other related costs and expenses. Consultant shall
defend, at Consultant's own cost, expense and risk, any and all such aforesaid suits, actions or
other legal proceedings of every kind that may be brought or instituted against City, its directors,
officials, officers, employees, agents or volunteers. Consultant shall pay and satisfy any
judgment, award or decree that may be rendered against City or its directors, officials, officers,
employees, agents or volunteers, in any such suit, action or other legal proceeding. Consultant
shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for
any and all legal expenses and costs incurred by each of them in connection therewith or in
enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be
restricted to insurance proceeds, if any, received by the City, its directors, officials officers,
employees, agents or volunteers.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the
State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
11
030
3.5.10 City's Right to Employ Other Consultants. City reserves right to employ
other consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.13 Construction: References: Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Consultant include all personnel, employees, agents, and
subcontractors of Consultant, except as otherwise specified in this Agreement. All references to
City include its elected officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the.scope,
content, or intent of this Agreement.
3.5.14 Amendment; Modification. No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
12
031
3.5.15 Waiver., No waiver of any default shall constitute a waiver of any
other default or breach, whether of the same or other covenant or condition. No waiver,
benefit, privilege, or service voluntarily given or performed by a Party shall give the
other Party any contractual rights by custom, estoppel, or otherwise.
3.5.16 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.5. 17 Invalidity: Severability. If any portion of this Agreement is
declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction,
the remaining provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has
not employed nor retained any company or person, other than a bona fide employee
working solely for Consultant, to solicit or secure this Agreement. Further, Consultant
warrants that it has not paid nor has it agreed to pay any company or person, other than a
bona fide employee working solely for Consultant, any fee, commission, percentage,
brokerage fee, gift or other consideration contingent upon or resulting from the award or
making of this Agreement. For breach or violation of this warranty, City shall have the
right to rescind this Agreement without liability. For the term of this Agreement, no
member, officer or employee of City, during the term of his or her service with City, shall
have any direct interest in this Agreement, or obtain any present or anticipated material
benefit arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an
equal opportunity employer and it shall not discriminate against any subcontractor,
employee or applicant for employment because of race, religion, color, national origin,
handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited
to, all activities related to initial employment, upgrading, demotion, transfer, recruitment
or recruitment advertising, layoff or termination. Consultant shall also comply with all
relevant provisions of City's Minority Business Enterprise program, Affirmative Action
Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder, Consultant
certifies that it is aware of the provisions of Section 3700 of the California Labor Code
which require every employer to be insured against liability for Worker's Compensation
or to undertake self-insurance in accordance with the provisions of that Code, and agrees
to comply with such provisions before commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Consultant has all requisite power
and authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal
power, right, and authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement may be signed in counterparts, each
of which shall constitute an original.
13
M.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any
portion of the work required by this Agreement, except as expressly stated herein,
without prior written approval of City. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
CITY OF AZUSA
By: By:
Attest:
City Manager
City Clerk
Approved as to Form:
Best Best & Krieger LLP
City Attorney
CONSULTANT
[Name]
[Title]
14
033
C-4-.
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE3'�
DATE: MARCH 23, 2009
SUBJECT: SECOND ADDENDUM TO OPTION AND SETTLEMENT AGREEMENT
BETWEEN NORTHROP GRUMMAN, CEMEX, ALR AND THE CITY
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the attached Second Addendum
to Option and Settlement Agreement between Northrop Grumman, Cemex, Azusa Land
Reclamation, Inc., and the City of Azusa, and authorize the City Manager to sign said Second
Addendum on behalf of the City of Azusa.
BACKGROUND
On July 28, 2008, the Utility Board approved an Addendum to Option and Settlement Agreement
entered into between the aforementioned parties related to a slope failure at the Cemex gravel
mining site which is owned by Azusa Land Reclamation, Inc. The Addendum required Cemex
and Azusa Land Reclamation, Inc. to purchase land from Northrop which was damaged by the
slope failure. The Addendum, however, included the name of "Azusa Land Reclamation
Company, Inc." instead of the correct name, "Azusa Land Reclamation, Inc." Because of this,
Azusa Land Reclamation, Inc. has requested a Second Addendum to change the name used in the
Agreement to Azusa Land Reclamation, Inc. The Second Addendum to the Option and
Settlement Agreement is attached and staff recommends approval of this non -substantive change.
FISCAL IMPACT
This action has no fiscal impact.
Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities
034
SECOND ADDEAMM.TO OP77ONAND SETTLEMENT AGREEMENT
THIS SECOND ADDENDUM TO OPTION AND SETTLEMENT
AGREEMENT ("Addendum's is entered into as of February 12, 2009, by and among
Northrop Grumman Systems Corporation, a Delaware corporation ("Northrop
Grumman'), Azusa Land Reclamation, Inc., a California corporation ("ALR'), CEMEX
Construction Materials Pacific, L.L.C., a Delaware limited liability company ("CCMP"),
as successor in interest to CEMEX Construction Materials, L.P., a Texas limited
partnership (referred to in this Addendum as "CEME)C"), and the City of Azusa, a
California municipal corporation (the "City"), each a "Party" and any two or more
collectively referred to herein as "Parties"
RECITALS
A. Northrop Grumman, ALR, CEMEX and the City have entered into that
certain Option and Settlement Agreement dated, for reference purposes, December 18,
2007 (the "Agreement';
B. The Agreement was amended pursuant to that certain Addendum to
Option and Settlement Agreement dated, for reference purposes, August 26, 2008 (the
"First Addendum" and, together with the Agreement, the "OSA") wherein it was
recognized that CCMP is the successor in interest to CEMEX;
C. It has come to the attention of the Parties that the legal name of ALR has
been incorrectly identified in the OSA as "Azusa Land. Reclamation Company, Inc." The
Parties desire to amend the OSA to reflect the correct corporate name of ALR.
NOW TBEREFORE, for and in consideration of the foregoing premises, and
other good and valuable consideration, the receipt and sufficiency of which is
acknowledged, the Parties agree as follows:
1. Clarification. The Parties acknowledge that the legal name of ALR was
incorrectly identified in the. OSA as "Azusa Land Reclamation Company, Inc."
Accordingly, the Parties hereby agree that the OSA shall be amended to reflect ALR's
correct corporate name: "Azusa Land Reclamation, Inc." Said entity name is hereby
amended for all purposes where incorrectly stated in the OSA or any attached exhibits
thereto.
2. Miscellaneous. Except as and to the extent expressly. modified and amended
herein the Parties ratify and affirm the OSA in accordance with its terms and
acknowledge that the OSA remains in full force and effect. This Addendum shall be
binding upon the Parties hereto and their respective successors and permitted assigns.
This Addendum may be executed in a number of identical counterparts. If so executed,
each of such counterparts shall be deemed an original for all purposes, and all such
counterparts shall, collectively, constitute one agreement For purposes of this
Addendum, signatures delivered by facsimile or electronic mail shall be as binding as
01
035
originals upon the Parties so signing. Any capitalized term set forth in this Addendum
that is not specifically defined herein shall have the meaning ascribed to it in the OSA.
IN WITNESS WHEREOF, the Parties have caused this Addendum to be executed
by their respective duly authorized representatives on the dates below but effective as of
the date first set forth above.
NORTIIROP GRUMMAN SYSTEMS CORPORATION
a Delaware corporation
Name:
Its:
Date: 12009
AZUSA LAND RECLAMATION, INC-
A California corporation
Name:
Its: �j 9_6QTc _
Date: fry. . //42 , 2009
CEMEX CONSTRUCTION MATERIALS PACIFIC, L.L.0
a Delaware limited liability company
By:_
Name:
Its: _
Date:
2009
THE CITY OF AZUSA
a California municipal corporation
Name:
Its:
Date: 12009
036
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: MARCH 23, 2009 �,1�
SUBJECT: AUTHORIZATION TO PROCURE SAN JUAN OUTAGE INSURANCE
COVERAGE
RECOMMENDATION
It is recommended that the Utility Board authorize the staff to procure an outage insurance
coverage for San Juan Unit 3 for the coverage period commencing July 1, 2009 through June 30,
2010 at a cost not to exceed $100,000 and subject to creditworthiness check of the insurer.
BACKGROUND
The City's San Juan unit 3 is the single largest resource in City's resource portfolio providing up
to 60% of City's annual electric energy requirement. The operational availability of San Juan
unit 3 and the cost of replacement power when the unit is not available due to forced outages
could have significant adverse impacts to the electric utility's finances.
Customarily, staff assumes for budget purposes that the unit would have an availability factor of
no less than 85%. However, if the unit availability turns out to be lower than 85% and/or spot
market prices turn out to be significantly higher than forecasted, then the cost of replacement
energy might tum out significantly higher than the budgeted amount causing adverse impacts to
electric utility's finances.
The City has purchased a San Juan forced outage insurance in the current fiscal year at a cost of
approximately $275,000. The insurance premium in the current depressed energy market has
decreased considerably (about a third of the premium cost in FY 08-09), but the need to insure a
major forced outage of San Juan unit has not diminished.
What Does Outage Insurance Coverage Do:
Typically, the insurance coverage has the following components:
1.' A strike price for replacement power in $/MWh
I A deductible amount in $
037
3. A maximum coverage limit in $
4. A premium payment in $
The following example illustrates how the insurance coverage would work:
Assume the insurance coverage has the following structure:
1. Strike price = $40/MWh
2. Deductible amount = $1,400,000/year
3. Maximum coverage limit = $4,000,000
4. Premium payment= $100,000
Further assumes that San Juan unit is unavailable for 25% of the time during a year and the cost
of replacement power is $88/MWh, thus the cost of replacement power above the strike price is
30 MW x 8,760 hours x 0.25 x ($88 - $40) = $3,153,600.
Therefore, the insurer would pay the City $1,753,600 ($3,153,600 less deductible of $1,400,000)
for cost of replacement power for San Juan outages.
The benefits of the insurance coverage are:
1. It reduces the cost of replacement power in a high spot market price environment.
2. It significantly reduces, but not completely eliminates the adverse financial impacts if
unit availability turns out to be lower than budgeted amount and spot market price for
replacement power turns out to be substantially higher than the budgeted amount.
In an extremely adverse scenario, i.e., very high unavailability factor of the unit and very
high spot market prices, the insurance coverage significantly reduces the possibility of
cash flow problems to the electric utility.
Thus, staff recommends the procurement of San Juan outage insurance coverage along the
parameters specified above given the benefits of such outage insurance coverage in protecting
the electric utility against severe financial dislocations that might result due to San Juan unit
operational issues and/or severe spot market price run -ups.
Staff is currently negotiating with one insurance policy provider within the parameters set forth
above. Final arrangement would be triggered when all the parameters set forth above are
satisfied:
FISCAL IMPACT
Said insurance coverage will cost less than $100,000 for the coverage period of July 1, 2009
through June 30, 2010. Funds remain available in FY 09-10 Electric Capacity and Energy
Account to pay for the purchase of said insurance coverage.
Prepared by: Bob Tang, Assistant Director of Resource Management
038
CWq4 - -
AZUSA
r.nr n mrrr
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: MARCH 23, 2009
SUBJECT: AWARD THE PURCHASE OF WATER FILTRATION PLANT OFFICE
FURNITURE FOR THE PLANT OPERATIONS AND MANAGEMENT
BUILDING TO OFFICE FURNITURE GROUP (OFG)
RECOMMENDATION
It is recommended that the Utility Board/City Council award the purchase of Water Filtration
Plant (WFT) office furniture for the Plant Operations and Maintenance Building to Office
Furniture Group (OFG) of Irvine, CA in the amount of $24,996.10, including tax and delivery.
BACKGROUND
The City of Azusa is currently constructing Improvements to its Canyon Water Filtration Plant.
One of the improvements to the WFT is an Operations and Maintenance Building which will
house the WFT plant operators, their offices, a testing laboratory and an operations room from
which the operators will be able to monitor and control the Water Filtration Plant, the system
water production wells, reservoirs, pressure regulators and system booster pump stations.
Because the operators have been housed in a modular (mobile) office, there is very little existing
furniture that will be usable in the new Operations and Maintenance Building. In keeping with
City of Azusa's informal purchasing policies for purchases under $25,000, three written quotes
were requested from office furniture vendors. The prices submitted by the three vendors are as
follows:
1. Office Furniture Group — Irvine, CA- $24,996.10
2. Crest Office Furniture -Burbank, CA- $30,883.42
3. Interform Commercial Interiors — San Ramon, CA - $30,408.76
039
FISCAL IMPACT
Fiscal impact will be $24,996.10 including applicable tax and delivery.. Funds are available in
the Water Division's approved budget in account no. 32-40-722-701-6572, which was budgeted
for this purpose.
Prepared by: Chet F. Anderson, Assistant Director - Water Operations
040
cow /o.
A.ZCTSA
UGNt I WAi1R
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES p�
DATE: MARCH 23, 2009 \, 1'
SUBJECT: ADDITIONAL REIMBURSABLE COMPENSATION TO CIVILTEC
ENGINEERING, INC. FOR CONTINUING INSPECTION SERVICES ON THE
ROSEDALE WATER RESERVOIRS AND WATER PUMP STATIONS
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the reimbursable addition of
$20,000 to Civiltec Engineering, Inc. contract pursuant to Azusa Municipal Code (AMC) section
2-517(h) for continuing inspection of the Rosedale development water storage reservoirs and
water pump stations.
BACKGROUND
At its July 24, 2006, regular meeting, the Utility Board approved a Professional Services
Contract with Civiltec Engineering, Inc. to perform inspection of water storage reservoirs and
water pump stations installed by Azusa Land Partners (ALP), the developer of Rosedale. Due to
continuing work on Rosedale development reservoirs and water pump stations, additional
reimbursable inspection services are necessary. At this time, the contract limit of $423,000 has
been reached and no additional payments may be made to Civiltec unless the contract amount is
amended. This request for approval of additional compensation is made to comply with AMC
section 2-517(h) which requires contract amendment amounts greater than $10,000 be approved
by the City Council. Approval of an additional $20,000 to the existing contract will authorize
the Finance Department to continue to pay Civiltec up to $443,000 in aggregate.
FISCAL IMPACT
This request has limited fiscal impact. The City has a partial funding obligation for the 890
reservoirs of approximately 72%. The Siena Madre pump station, 1023 Reservoir and 1023
Pump station are funded by ALP in their entirety. The approved additional payments to Civiltec
will initially be funded from the Capital Improvement Budget Account 32-80-000-721-
7130/72107A-7130, and appropriate amounts will be reimbursed by APL.
Prepared by: Chet Anderson, Assistant Director- Water Operations 041
AZI I.IIL A WUSA
Atff
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES,�J
DATE: MARCH 23, 2009
SUBJECT: DELAY IN THE OPERATIONAL STATUS OF THE CANYON WATER
FILTRATION PLANT
The new Canyon Water Filtration Project is nearing completion. It is anticipated that the plant
will be substantially complete (the point at which it is operational) around the last week of March
or the first week of April. At that time, the Liquidated Damages being levied against SSC
Construction will be reduced from $1,000 per day to $500 per day.
At substantial completion, certain tasks, like landscaping, will remain to be completed, but
theoretically the plant facilities, piping, pumping and treatment equipment will be capable of
treating water. However, operation of the treatment plant requires an operation permit from the
Califomia Department of Public Health (DPH).
Application was made to DPH at the beginning of last November for the Treatment Plant
Operating Permit, which included consideration of the construction schedule. Various factors
since that time have arisen that have made it difficult for DPH to devote substantial time to the
review of our application. According to the District Engineer of the Los Angeles District of
DPH, the review of a permit to operate a sophisticated water treatment plant requires a full and
detailed DPH engineering report and is not simply a pro forma preparation. This was anticipated
and is why the application was submitted back in November.
042
However, difficulties confronting DPH in reviewing Azusa's application now include
understaffing and staff furloughs imposed by the state, and an influx of applications from
stimulus legislation for economic recovery. The economic stimulus funding applications require
quick turnarounds due to deadlines. DPH has stated that the WTP permit application must be
reviewed in parallel with those funding applications. All of these factors have tended to
substantially increase the amount of time necessary for DPH to review permit applications and
were not foreseeable at the time that the WTP permit application was submitted.
According to Black & Veatch, the review of DPH of permit applications for treatment plants
similar to Azusa's, and processing of the permit typically takes a few months, and then other
Districts of DPH will issue a conditional permit to operate the plant. However, this District of
DPH has also stated that granting a conditional permit to operate the Treatment Plant is
something that they would prefer not to do.
The Treatment Plant Contractor, SSC Construction, will not be able to make the final connection
of the new Treatment Plant treated water pipeline to the Azusa Water Distribution System until
the operating permit is granted because connection of the new treatment plant will require the
disconnection of the existing treatment plant. It is necessary to keep the existing treatment plant
operating and online until the new treatment plant is ready to operate.
A reasonable estimate is that the permit could be granted sometime in June
Prepared by:
Chet F. Anderson, Assistant to the Director— Water Operations
043
Plant operators' in training
FEBRUARY PROGRESS
PAYMENT REQUEST: $272,890.92
TOTAL PAID TO DATE $35,946,995.16
AMOUNT TO ESCROW* $2,397,293.66
PROJECT PERCENT COMPLETE 98.69%
MONTHLY REPORT
_ .. _.._ ... ..
_ MARCH, 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
$36,515,702.14
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
Approved Jan 26, 2009
$93,005.85
0
Approved Feb. 23. 2009
88
MONTHLY ACTIVITIES
Construction progress meetings were held Feb 26 & Mar 12
Total CO's
$610,202.14
As of 03/18/09
(1.70% over bid price)
Subcontractor TSI onsite doing WTP SCADA site acceptance testing
Chemical Feed building operational for clean in place training - chemicals being deleivered to site
O & M building may need redo on interior painting
Membrane Building painting and finish work
Membrane startup has begun - Siemens onsite doing operator training on Membrane operation
Siemens onsite doing clean in place training
Reservoir exterior painting underway- primer mat applied
Plant operators' in training
FEBRUARY PROGRESS
PAYMENT REQUEST: $272,890.92
TOTAL PAID TO DATE $35,946,995.16
AMOUNT TO ESCROW* $2,397,293.66
PROJECT PERCENT COMPLETE 98.69%
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM:
JOSEPH F. HSU, DIRECTOR OF UTILITIES�'�
DATE:
MARCH 23, 2009
SUBJECT: APPA ANNUAL LEGISLATIVE RALLY REPORT
Staff attended the annual American Public Power Association (APPA) legislative rally in
Washington D.C. during the week of February 23, 2009. The following provides a brief
summary of what might be in the works in terms of federal legislation that might impact the
utilities in this session of the Congress. During the week, the Southern California Public Power
Agency (SCPPA) contingency visited the offices of our state and local representatives. Staff
visited the offices of Senators Dianne Feinstein and Barbara Boxer, and House Representatives
David Dreier, Loretta S na chez and7Ienry Waxman.
The general sentiment at the Capitol Hill is this year is going to be a very busy legislative year as
far as energy issues are concerned as the new Administration and the new leadership in the key
energy committees is very committed to energy issues. There are three main areas of focus as
follow:
Federal Transmission Siting Authority:
There is a recognition that the existing transmission siting authority which mostly rests in the
purview of individual states leaves major gaps when siting interstate transmission lines or when �J
local opposition is too daunting to overcome. There is a sentiment that a federal preemptive W
eminent domain authority to site transmission lines might be necessary as a means to at least site
the necessary transmission lines for renewable resources and for transmission lines is required to
maintain reliability.
The Senate Majority Leader just introduced a bill to give the transmission siting authority to the
Federal Energy Regulatory Commission (FERC) for renewable resources and Senator Bingaman
is also expected to introduce his own bill shortly.
The sentiment is this is going to be a controversial jurisdictional battle between the state
regulatory agencies and the FERC. It is unclear how the ultimate compromise might be
fashioned.
045
Climate Chanee:
There is an unequivocal sentiment that climate change legislation will be the major energy
legislative initiative in this Congress and the cap -and -trade paradigm for greenhouse gas (GHG)
reduction paradigm will be in the front and center in this debate. The new Administration in its
federal budget is counting on revenues in FY 2011-2012 from the cap -and -trade for many
purposes including uses for general federal government functions (balance the federal budget);
incent energy efficiency and conservation; fund research and development of "green"
technologies; and tax subsidies to low income taxpayers who might be more severely impacted
by the legislation.
One of the most controversial issues will undoubtedly be the allocation of GHG allowances to
various sectors of the economy and interest groups. SCPPA contingency reiterated our position
that Congress should take a slow and measured approach in deciding the paradigm and be very
careful regarding allowance allocation to avoid retail electric rate shocks and market meltdowns
that might result from an imperfect financial paradigm.
There is a sentiment of uncertainty whether federal climate change legislation will muster the
necessary votes to pass due to its shear complexity and far reaching impact to the economy.
The marching order to some key committee staff is to have a draft climate change bill by
Memorial Day.
Federal Renewable Portfolio Standard (RPS):
Closely related to the climate change issue, there is a strong sentiment that a federal RPS
mandate might be a necessary tool to achieve GHG reduction goals. As California is in the
forefront of RPS implementation, we express our support to a federal RPS mandate provided it
does not duplicate what the states are already doing.
Please contact Bob Tang if you need further information regarding the above or have any
questions.
Prepared by: Bob Tang, Assistant Director of Resource Management
'. i
sk
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES, �
DATE: MARCH 23, 2009 v "
SUBJECT: QUARTERLY FUEL COST ADJUSTMENT FOR SAN JUAN RESOURCE
On July 26, 2004, the Utility Board approved a fuel cost adjustment mechanism for San Juan
power. plant. This mechanism is intended to credit customers with cost savings that are realized
when our power plant operates reliably and replacement power costs are avoided, and
conversely, allow the Utility to increase revenues to recover a portion of our replacement power
costs when the San Juan resource experiences outages.
This report encompasses replacement power costs incurred for the San Juan resource during the
period of January 1, 2009 through March 15, 2009. For reasons stated below, staff recommend
that Fuel Cost Adjustment be set at zero for the period of April 1, 2009 through June 30, 2009.
The availability of the San Juan unit #3 during the period of January 1, 2009 through March 15,
2009 was 75%, below the budgeted availability of 85% reflecting continued operational tuning
and the unanticipated issues caused by the new combustion process/profile after the
Environmental Project went operational mid year 2008. The average cost of replacement power
during this reporting period was $32.92/MWh as compared to the budgeted cost of $40/MWh,
greatly benefitting from the depressed commodity market in general. The combination of lower
availability and lower average cost of replacement power resulted in a net charge of $122,990 for
Fuel Cost Adjustment for the quarter, and when combined with the zero carry over amount from
the previous quarter results in a total FCA charge of $122,990.
Per current FCA mechanism, any time the FCA charge exceeds $100,000 in the quarter such
amount is eligible for recovery in the following quarter. However, given that the current quarter
FCA charge amount only very slightly exceeds the $100,000 threshold and there is an
expectation that the San Juan availability should be improving in the coming months, staff
recommends carrying the FCA charge of $122,990 forward to be recovered in the next quarter if
applicable.
We expect San Juan performance to improve in the coming months and anticipate FCA charge to
decrease that might nullify the need to recover the current quarter's FCA charge.
Prepared by: Bob Tang, Assistant Director of Resource Management
047
San Juan Fuel Cost Adjustment Calculation for Q2 2009
Cumulative Quarterly Difference (CQD)
Q1 2009 Carry -Over
If J(CQD)1<$100,000, then adjustment=0
If I(CQD)I>$750,000, then adjustment=+ -$750,000
or else adjustment = COD
Forecast Retail Sales (MWh)
SJ FCA for 02 2009 (cents/KWh)
(*) Through March 15th, 2009
January February
20,669 21,475
MW
$122,990
$0
$122,990
March
24,039
$32.92
25.48%
January
February
March (*)
Actual SJ Output
14,927
13,301
10,154
Actual SJ Replac Energy Cost
$226,535
$199,361
$6,118
Maximum Output
21,576
19,488
10,440
Unavailable SJ Output
6,649
6,187
286
% Outage Rate
30.82%
31.75%
2.74%
Base SJ Output @ 85%
18,340
16,565
8,874
Unavailable SJ Output
3,236
2,923
1,566
% Outage Rate
15.00%
15.00%
15.00%
Base SJ Replac Energy Cost @$40/MWh
$129,456
$116,928
$62,640
Actual - Base SJ Replac Energy Cost
$97,079
$82,433
-$56,522
San Juan Insurance Premium Recovery
$0
$0
$0
San Juan Insurance Payout
$0
$0
$0
Cumulative Quarterly Difference (CQD)
Q1 2009 Carry -Over
If J(CQD)1<$100,000, then adjustment=0
If I(CQD)I>$750,000, then adjustment=+ -$750,000
or else adjustment = COD
Forecast Retail Sales (MWh)
SJ FCA for 02 2009 (cents/KWh)
(*) Through March 15th, 2009
January February
20,669 21,475
MW
$122,990
$0
$122,990
March
24,039
$32.92
25.48%
D000 (o
AZUSA
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES/A p
DATE: MARCH 23, 2009 h�
SUBJECT: REPORT ON MULTI-YEAR SUMMER PEAKING ELECTRIC POWER
PROCUREMENT
At January 26, 2009 Utility Board meeting, the Board authorized the staff via Resolution to
engage in multi-year summer peaking electric power purchase to replace the expiring power
purchase agreement and continue to meet city's summer electricity needs. Given the favorable
energy market conditions, staff engaged in a multi-year transaction on March 17, 2009. Staff is
hereby providing a report of the transaction as required by the established guidelines as follows:
Transaction Counterparty: Shell Energy North America
Authorized Staff:
Assistant Director of Resource Management in consultation
with the Director of Utilities
Authorized Product:
15 MW of summer peaking electric power for the months
of June through September
Transaction Duration:
Five-year transaction covering the months of June through
September for 2010 through 2014. The transaction
commences in June 2010 and ends in September, 2014,
consistent with Board's authorization
Trigger Prices:
The prices for the product are as follows:
June -September 2010 $61.10/MWh
June -September 2011 $66.75/MWh
June -September 2012 $69.75/MWh
June -September 2013 $71.50/MWh
June -September 2014 $72.00/MWh
Five -Year Simple Average $68.22/MWh
The prices in any year and in aggregate during this period
did not exceed the established not -to -exceed trigger price of
$85/MWh
Frequency of Trigger: Staff will not trigger any additional five-year summer
peaking procurement before March 17, 2010 unless
explicitly authorized by the Utility Board
Solicitation Process: Staff conducted a formal Request for Proposal (RFP). The
RFP is attached for information. Four creditworthy entities
were invited to make offers and three entities responded
with offers. Shell Energy North America's offer was the
lowest offer in any single year and in aggregate in
comparison to the other two offers
It should be noted that the forward prices for summer peaking power declined by more
than 10010 since the procurement was authorized by the Utility Board in January. It
should also be noted that these forward power prices compare very favorably to the
historical spot market summer power prices in the recent past. For example, the
average spot market summer peaking power prices in the past four years in Southern
California were:
June -September 2005 $75.95/MWh
June -September 2006 $68.85/MWh
June -September 2007 $69.00/MWh
June -September 2008 $91.41/MWh
Four -Year Simple Average $76.30/MWh
Thus the contracted forward prices on average are 10% lower than the spot market
summer peaking power prices in the past four years, which translates into an annual
saving of $194,000 or $970,000 over five years when compared to the
alternate procurement strategy of purchasing summer peaking power in the spot
market which can be very volatile.
Finally, the summer peaking power prices on a forward basis are at their lowest point
in the past 10 years due to the severely depressed energy commodity markets and are
not anticipated to decline substantially further as the economy starts to recover in the
coming years.
Given these facts, staff believes the objective of cost effectively procuring the medium
term summer peaking power at this time has been achieved by this procurement.
Prepared by: Bob Tang, Assistant Director of Resource Management
050
REQUEST FOR PROPOSAL
FIRM PEAKING ENERGY
The City of Azusa, California ("Azusa") issues this Request for Proposal ("RFP") for
firm peaking energy product for the summer months as specified below.
Term: Five years commencing CY 2010 through CY 2014
Volume: 15 MW
Product: Firm peaking energy (6x16, HE 07 through HE 22, Monday
through Saturday, except NERC Holidays) for the months of June
! through September during the Term
Delivery Point: Mead 230 kV bus
Schedule: Date Process
3/4/2009 Issue this RFP
3/5-3/31/2009 At Azusa's sole discretion, Azusa may
request firm offers from sellers in any
weekday during this period. Azusa will
make such request by phone to the seller's
designated contact person by 9:00 am
(Pacific Time). Sellers will have two hours
(offers are due 11:00 am Pacific Time) to
submit the firm offers in the format
specified in Exhibit A. Azusa will inform
the sellers who have submitted offers
whether his/her offer has been selected by
no later than noon (Pacific Time) on the
same day of offer request. It is seller's sole
responsibility to inform Azusa its designated
contact person; the contact information; and
the unavailability of such person on any
given day during this period. At Azusa's
sole discretion, Azusa may take into account
Seller's designated contact person's
availability in the offer request process
051
Date
5 Business Days
After Offer is
Accepted
Agreements and
Collateral Requirements:
Process
Execution of a confirmation agreement no
later than 5 business days after seller's offer
is accepted
It is seller's sole responsibility to
communicate, finalize and executerip or to
submitting offers, any applicable enabling
agreements, addendums to existing
agreements and/or any collateral annexes
with Azusa. At Azusa's sole discretion,
Azusa may require the posting of collateral
or a letter of credit from seller, it is seller's
sole responsibility to inquire and finalize
such collateral requirementsrip for to
submitting offers.
Seller's failure to communicate, finalize and
execute the applicable enabling agreements,
addendums to existing agreements and/or
collateral annexes with Azusarip or to
submitting offers will result in the
refection of an accepted offer.
Confidentiality: Azusa, as a municipal corporation, must
disclose the information of any agreement
entered into by Azusa to the public. Further,
Azusa is subject to the Public Records Act
disclosure requirements. Thus, seller should
be aware that the winning offer leading to a
confirmation agreement will be disclosed to
the public and non winning offers may be
disclosed subject to Public Records Act
requests.
Disclaimers/Termination: Azusa retains the discretion to reject any
offer, or terminate discussions and/or
negotiations regarding any offer, at any time
for any purpose, without liability or
responsibility to Azusa. Azusa reserves the
right to terminate this RFP at any time for
052
any purpose, without prior notification to
seller's, and without liability or responsibility
to Azusa.
Any questions to this RFP should be directed to Bob Tang at 626-812-5214, e-
mail btang(a,ci.azusa.ca.us
053
SELLER'S DESIGNATED CONTACT PERSON
Company:
Name:
Phone:
Please specify business days if any, during March 5 through March 31, 2009
that you are not available
Return via e-mail to btang(a')ci.azusa.ca.us by close of business on March 4, 2009
054'
SELLER OFFER SHEET
Company:
Contact:
Offer in $/MWh for summer peaking power product:
CY Offer
2010
2011
2011
2013
2014
Return via e-mail to btangPci.azusa.ca.us by no later than 11:00 a.m. on this date of
055
ALUSA
'. OXl b WOE&
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES \
DATE: MARCH 23, 2009
SUBJECT: UPDATE ON STATE RECYCLING MANDATES AND AZUSA'S DIPSOSAL
RATE FOR 2007
In 1989, State legislators passed Assembly Bill 939 (AB 939), also known as the California
Integrated Waste Management Act of 1989, which requires each city and county in the state to
reduce waste disposed in landfills by 50% starting in the year 2000 or pay penalty for non-
compliance. The City of Azusa has successfully diverted more than 50% of its waste from
landfills and has avoided potential fines of $10,000 per day since 2001.
At its regular meeting on April 28, 2008; the Utility Board/City Council adopted a support
position on Senate Bill (SB) `Z.16.following the bill's introduction by Senator Patricia Wiggins
(D -Santa Rosa). This bill was signed into law last year and eliminates the complex mathematical
calculation to determine whether city governments are in compliance with the 50% goal of AB
939.. SB 1016 will help reduce the time and cost incurred by cities in preparing their annual
reports of compliance to the state. Azusa staff have already saved some time in preparing its
annual report for calendar year 2007 which was due to the state by March 16.
Instead of measuring what percent of trash is recycled, the new system measures how many
pounds are disposed of from each city on a pounds -per -person -per -day basis. By calculating the
average number of tons of waste generated by the City of Azusa from 2003 to 2006, and using a
50% waste diversion requirement, the State has set a limit of 6.3 pounds per person per day for
the City of Azusa. Going forward, all the City has to do is monitor the amount of waste actually
disposed of on an annual basis and divide it by the population and number of days per year to
determine if the City is in compliance. Using this methodology for calendar year 2007 resulted
in a calculation of 5.9 pounds per person per day for the City of Azusa, which is within our
allowed limit.
Previously, city staff had to use population, employment, CPI and taxable sales data—in addition
to disposal information, to calculate waste diversion. Many of these statistics were not available
in a timely manner from various state agencies. This delayed our ability to calculate waste
diversion and submit our annually required report by the statutory deadline of August 1 for the
prior calendar year. This was recognized as a statewide problem, but with SB 1016, cities will
be back on schedule and Azusa's report for 2008 will be due in August 2009.
As part of the annual report preparation process, City staff will continue to review disposal
records from the Sanitation Districts of Los Angeles County. Athens Services has voiced
concern about other waste haulers serving Azusa illegally, and City staff will continue to review
disposal information in order to identify waste tonnage that was misreported as coming from
Azusa when in fact it originated from another jurisdiction, and to identify waste haulers serving
the City without authorization and in violation of Athens' franchise rights.
Staff remains concerned about various solid waste issues, including long term cost containment
and staying in compliance with AB 939 and SB 1016. Once the Puente Hills landfill closes in
2013, for example, the Cid will lose all waste "diversion credit" associated with residential yard
waste program. And while Athens appears to be proactively planning alternatives for yard waste
that they collect from Azusa, Athens does not control all yard waste disposed from Azusa.
During 2008, Athens collected about 2,800 tons from Azusa's yard waste program. However,
the Sanitation Districts reports that yard waste from all contractors serving Azusa was about
6,700 tons during 2008.
credit when Puente Hills -landfill -closes in 2013 due to the
loss of the Alternatively Daily Cover (ADC) program will increase our pounds -per -person -per -
day disposal rate to unacceptable levels of about 6.6 lbs per person day. The severity of the
situation could worsen if the state adopts bills to increase the diversion requirement to say 75%.
The MRF program appears unable to yield higher levels of waste diversion, at least, staff has not
seen reports from Athens which would indicate that the MRF can make up for this loss of
diversion credit.
Prepared by:
Cary Kalscheuer, Assistant to Director of Utilities
Liza Cawte, Administrative Technician
057