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HomeMy WebLinkAboutAgenda Packet - April 27, 2009 - UBAZUSA LIGHT A'WATER AGENDA REGULAR MEETING OF AZUSA UTILITY BOARD/AZUSA CITY COUNCIL JSA LIGHT & WATER APRIL 27, 2009 N. AZUSA AVENUE 6:30 P.M. JSA. CA 91702 AZUSA UTILITY BOARD URIEL E. MACIAS CHAIRPERSON ;RT GONZALES JOSEPH R. ROCHA CHAIRPERSON BOARD MEMBER 1ANKS ANGEL CARRILLO MEMBER BOARD MEMBER P.M. Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council • Call to Order • Pledge to the Flag • Roll Call 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.) 001 B. CONSENT CALENDAR The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under SPECIAL CALL ITEMS. 1. Minutes. Recommendation: Approve minutes of regular meeting on March 23, 2009 as written. A Mar09 Min. pdf 2. Approval of Letter of Support for Reclaimed Water Project. Recommendation: Approve and authorize the Mayor to sign the letter supporting the Upper San Gabriel Valley Municipal Water District's reclaimed water project which will provide a reliable secondary source of recharge water for the Main San Gabriel Groundwater Basin. Reclaimed Wtr Ltr of Support. pdf Pres Excerpt. pdf Rpt.pdf . Approval of Bid to Retrofit Water Division Trucks. Recommendation: Approve bid by Ironman Emissions Group to retrofit three Water Division diesel trucks with Particulate Matter (PM) Traps in amount of $41,295.56. it ill Wtr Truck Wtr Truck Retrofits -Rpt. pdf Retofft,pdf 4. Approval of Contract and Budget Amendment for Project WV -262. Recommendation: Approve the awarding of contract for Project WV -262, Water Main Replacement in Rowland Avenue, West Covina, to A.R. Sarmiento, Incorporated in amount of $928,567.48 and approve the following resolution for a budget amendment of $450,000 to FY 2008-2009 Capital Improvement Budget account. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AMENDING THE FISCAL YEAR 2008-2009 CAPITAL IMPROVEMENT PROGRAM BUDGET FOR THE WATER UTILITY TO AUTHORIZE APPROPRIATIONS NECESSARY TO FUND THE CONSTRUCTION OF PROJECT WV -262 WATERLINE REPLACEMENT IN ROWLAND AVENUE IN THE CITY OF WEST COVINA. 002 ill Bid Award for W-262 Reso_Budget and Budget Arrend. P Arrdnt.pdf 002 Approval of Professional Services Agreement for Inspection of Project WV -262. Recommendation: Approve the awarding of professional services agreement for inspection of Project WV -262, Water Main Replacement in Rowland Avenue, West Covina, to Wren and Associates Incorporated in amount of $25,560.00. It Insptn of WV-262.pdf Approval of Additional Compensation for Black & Veatch Incorporated. Recommendation: Approve the addition of $102,000 to the Black & Veatch contract to provide Construction Management Engineering Services for Project WVF-207, Canyon Membrane Water Treatment Plant Upgrade and Expansion. Approval of Support Letter for Assembly Bill 87. Recommendation: Adopt a Support position and authorize the Mayor to sign letter to support AB 87 (Davis) that would allow big supermarkets and retailers to charge 25 cents per plastic or paper bag as part of the single use bag reduction program sponsored by the Los Angeles County. AB 87 -Bag Fee. pdf AB87-Supptl.tr. pdf Approval of Notice of Completion (NOC) for Proiect LD2008-3. Recommendation: Accept Project LD2008-3, Refurbishing the Existing Chain Link Fence at Azusa Substation, as complete and direct the City Clerk's Office to execute NOC and have same recorded in the Office of the Los Angeles County Recorder. NOC-AzusaS ibRpt.p df ADDroval of Reimbursement to Covina Irrigating Company (CICo) for Cost to Extend Transmission Line into Sierra Madre Avenue. Recommendation: Approve the reimbursement to CICo for the installation of approximately forty feet of pipeline and appurtenance equipment to extend the Water Treatment Plant (WTP) transmission line to connect to an existing Azusa transmission line in Sierra Madre Avenue, creating the connection of the WTP to the Azusa water distribution system. EI CIC Reinturseirent. pdf 003 Black &Veatch Ltr_Black& Rpt.pdf Veatch.pdf Approval of Support Letter for Assembly Bill 87. Recommendation: Adopt a Support position and authorize the Mayor to sign letter to support AB 87 (Davis) that would allow big supermarkets and retailers to charge 25 cents per plastic or paper bag as part of the single use bag reduction program sponsored by the Los Angeles County. AB 87 -Bag Fee. pdf AB87-Supptl.tr. pdf Approval of Notice of Completion (NOC) for Proiect LD2008-3. Recommendation: Accept Project LD2008-3, Refurbishing the Existing Chain Link Fence at Azusa Substation, as complete and direct the City Clerk's Office to execute NOC and have same recorded in the Office of the Los Angeles County Recorder. NOC-AzusaS ibRpt.p df ADDroval of Reimbursement to Covina Irrigating Company (CICo) for Cost to Extend Transmission Line into Sierra Madre Avenue. Recommendation: Approve the reimbursement to CICo for the installation of approximately forty feet of pipeline and appurtenance equipment to extend the Water Treatment Plant (WTP) transmission line to connect to an existing Azusa transmission line in Sierra Madre Avenue, creating the connection of the WTP to the Azusa water distribution system. EI CIC Reinturseirent. pdf 003 C. STAFF REPORTS/COMMUNICATIONS 1. Monthly Update on Water Treatment Plant Moly WTP . Update. pdf 2. Lodi #2 Project Update K=L U Lodi Project Update.pdf r 3. California New Electricity Market Update MRlU Update. pdf 4. Potential Grant Application for Stimulus Money through SCPPA (Verbal) 5. Water Awareness Month — May (Verbal) 6. Sacramento Bee Article: Sacramento County Water Rate Hike Passes Preliminary Vote ZW Article-SactoWaterHi ke. pdf D. DIRECTOR'S COMMENTS f �` 1. Discussion on Future Meeting Dates for Budget, Study Sessions/Joint Meetings, and City -Hall On -the - Move Events MeetingDates. pdf _ 2. Selection of Date for Water Treatment Plant Dedication (Verbal) 4 004 I:� II11-wI3191001 Adjournment. compliance with the Americans with Disabilities Act, ifyou 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 hers of the public at the following locations. Azusa City Clerk's Office - 213 E. Foothill Boulevard, ra City Library - 729N, Dalton Avenue, and Azusa Light & Water -729 N. Azusa Avenue, Azusa CA." 005 California is moving aggressively to implement AB 32 (Global Warming Solutions Act) and other policies to attack global warming. This Forum brings together key local and state experts to brief valley, businesses, elected officials and civic leaders on the costs and benefits of California's climate change law. SPONSORS OF PASgo F d z m n m o m 9AORgTED 3%� California Leadership Council NFIB The Voice of Small Business. California Small Business Roundtable 32 Implementation Group FEATURED SPEAKERS Overview of California's Climate Change Law (AB 32) Representative California Air Resources Board How AB 32 will Impact Electricity Costs Ron Davis, General Manager Burbank Water and Power How AB 32 will Impact Business Lee Harrington, Executive Director Southern California Leadership Council How AB 32 will Impact Local Land Use Decisions Richard Bruckner, Director Pasadena Department of Planning & Development Introduction Mayor of Glendale Moderator Phyllis Currie, General Manager Pasadena Water and Power When: 11:30 AM to 1:30 PM Thursday, May 14, 2009 Where: Embassy Suites in Glendale 800 N. Central Ave. Glendale, CA 91203 . Lunch will be provided free of charge. Registration: Space is limited so please sign up soon with Atineh Haroutunian at AHaroutunian@d.glendale.ca.us or at 818 548-3381. Anz1 a 7=� r f I CITY OF AZUSA I MINUTES OF THE REGULAR MEETING OF THE AZUSA UTILITY BOARD/CITY COUNCIL i ' MONDAY, MARCH 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. ROLL CALL PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: BOARD MEMBERS: NONE ALSO PRESENTi: City Attorney Ferre, City Manager Delach, Assistant City Manager Makshanoff, Director of Utilities Hsu, Assistant to the Utilities Director Kalscheuer, Director of Resource Management Tang, Police Captain Momot, Assistant Director of Water Operations Anderson, Public Works Director/Assistant City Manager Haes, City Clerk Mendoza, Deputy City Clerk Toscano. Election of Officers Moved by Board Member Hanks, seconded by Board Member Carrillo and unanimously that Board Member Macias be nominated and appointed as Chairperson of the Utility Board. Moved by Board Member Rocha, seconded by Board Member Carrillo and unanimously carried that Board Member Gonzales be nominated and appointed as Vice Chairperson of the Utility Board. Public PartieiDatlbn Mr. Jorge Rosales addressed items C-4 and C-5 regarding awarding contracts for professional services and certain criteria that should be followed; he also asked about a survey cost that is not identified as part of the bid. With regard to item C-6 Request for Proposals for Water Main Project to provide inspection services, he noted that the item:fails to identify the type of firms being sought. Assistant Director 6f Water Operations Anderson responded to questions stating that the total proposal prices varied as one consultant to another and were compared as to scope, experience, cost, completion time, hours estimated and comparative cost per hour and their statement of qualification. Call to Order iZ.71G�11 Also Present Elect of Officers Macias Chairperson Gonzales Vice Chair Pub Part J. Rosales Comments C. Anderson Response MM The CONSENT CALENDAR consisting of Items C-1 through C-10, was approved by motion of Board Consent Cal Member Hanks, seconded by Board Member Carrillo and unanimously carried, with the exception of items C- C I — C 10 5 and C-9 which were considered under the Special Call portion of the Agenda. Staff noted the change in Change to item sales tax to item C-2; noting when item is delivered it will be with the new sales tax rate. Board Member C2. C-5 & 9 Rocha abstained from item C-1, as we was absent from that meeting. Spec Call I . The minutes of the regular meeting of February 23, 2009, were approved as written. Min appvd 2. Approval was given for the purchase of 55" insulating aerial truck from Truck Hydraulic Equipment Bids Wtr Main Company of Fontana, California, in the amount not -to- exceed $301,665.69 including sales tax. It was Cement noted that there will be an increase in sales tax which will bring total to $305,845.81. Relining Prjt 3. Authorization was given for the advertisement for and solicitation of bids for Project W-263, Water Main Hall & Cement Relining Project in various streets in the cities of Azusa, Covina, West Covina, and Los Angeles Foreman County. Consulting sys 4. Approval was given to award contract for consultant design services for Project W-265, Pipeline RBF Replacement Project in Cities of West Covina and Covina, to Hall & Foreman Incorporated in amount of Consulting $99,800 (including $ I6,800 for survey). Design sys 5. SPECIAL CALL ITEM. Spec Call 6. Authorization was given to staff to solicit proposals from qualified consultants to provide inspection RFP Inspect services for Project WV -262, Water Main Replacement Project in Rowland Avenue in West Covina. Svs 7. The Second Addendum to Option Settlement Agreement Between Northrop Grumman, Cemex, Azusa Second Add Land Reclamation and the City of Azusa, was approved and the City Manager was authorized to sign on Northrop behalf of the City. 8. Staff was authorized to procure an outage insurance coverage for San Juan Unit 3 for the coverage period Outage Ins commencing July 1, 2009 through June 30, 2010 at a cost -not -to -exceed $100,000 and subject to credit San Juan Unit worthiness check of the insurer. 9. SPECIAL CALL ITEM. 10. The reimbursable addition of $20,000 to Civiltec Engineering Incorporated contract for continued inspection services on the Rosedale Water Reservoirs and Pump Stations project was approved. SPECIAL CALL ITEMS Board Member Gonzales addressed item regarding award of consultant Design Services for Pipeline Replacement Project W-266, asking the scope of the project and how many days it's going to take. Assistant Director of Water Operations Anderson responded stating that it was based on several issues, i.e. man-hours and total cost. Moved by Board Member Carrillo, seconded by Board Member Hanks and carried by roll call to approve the award 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). Board Member Gonzales dissenting. Spec Call Reimbursable Addition Civiltec Special Call Inspection Svs Solicit prop Board Member Carrillo addressed the purchase of office furniture reminding staff that include local businesses Office Fum. in the request for proposals and asked that in the future they be included. Moved by Board Member Carrillo, Grp WTP seconded by Board Member Hanks and unanimously carried to approve the purchase of WTP office furniture for the plant operations and management building from Office Furniture Group (OFG) in amount of $24,996.10 including tax and delivery. 03/23/09 PAGE TWO 007 STAFF REPORTS/COMMUNICATIONS Staff Rpts Director of Utilities Hsu presented the Monthly Update on Water Treatment Plant stating that the Canyon Monthly WTP Water Filtration Plant Project is nearing completion but a permit needs to be acquired from the California Update Department of Public Health which is having problems with shortage of manpower as well as an influx of funding applicatiods which require a quick turnaround. The project will be substantially complete at the end of March but the Health Department probably won't deliver the permit until June. Additional discussion was held regarding obtaining an air quality permit to operate Emergency Back up Generator which the AQMD advised was below the minimum threshold and would cost about $2,000. Director of Utilities Hsu provided an update on the Drought stating as of last week the City is still below Drought normal for this time of year; that when the rainly season is over in Northern California they will then determine Update how much water is available as well as snow pack to determine allocation of water to Southern California. The water table aquifers are as good as in 2007, but not sure how much will be available in the fall. He responded to questions regarding the percentage cutbacks by customers; discussion was held about the lack of positive press coverage and. the non -release of water to the spreading grounds. Director of Resource Management Tang provided a report on American Public Power Association (APPA) legislative rally in Washington D.C. Legislative Rally stating that there are three main areas that affect the legislative issues as follows: the Federal Government is counting on Green House Gas allowance sales for revenues for governmental purposes, i.e. to balance their budget; this is a major concern and a major issue. There is a Federal mandate on the renewable standards and California is in the forefront; they are asking that the Federal not duplicate efforts that are in California due to the cost; and finally the Federal Transmission Siting Authority is receiving a lot of attention due to the controversy of nobody wanting transmission lines in their neighborhoods; Congress is looking into the transmission siting issue to see whether federal preemption authority should be:given to have eminent domain authority and the debate is in its beginning stages. Director of Utilities Hsu and Director of Resource Management Tang provided an update on CAISO New Markets stating that as of April 1, the California Independent System Operator will be embarking on a new market structure; there is concern about whether it will be operationally ready based on simulated invoices which have been astronomical; cities will have to pay the bill and then dispute it and ISO will research and refund the money; due to that concern, the municipal utilities are filing a complaint to the Federal Energy Regulatory Commission, about the lack of security safety net in extreme cases. i Director of Utilities Hsu presented the Quarterly update on the San Juan Fuel Cost Adjustment stating that reserve account is minimum and although the charge exceeds the $100,000 threshold they will not pass on to customer as it is an that in the next quarter the fuel cost will go down APPA Update CAISO New Market Update San Juan Fuel Cost Adjust Director of Utilities Hsu presented the Multi -Year Summer Peaking Electric Power Procurement stating that Summer Elect Bob Tang and staff have been successful in engaging in a multi-year transaction on March 17, 2009 for a five- Power year average of $68.22/MWh; he quoted prior years and noted the savings. Procurement Director of Resource Management Tang provided an update on the Lodi Project, stating that the application Update on Lodi has been filed with FERC; the location area already has a power project there and public meetings were setup Project with minimal participation and controversy; bids were sought in November, received from energy providers G.E. and Simmons; the project manager will examine this week with a conference call and recommendation to accept one of the bids; the project is going as planned; major issue is project cost which has gone up from last summer's estimate as much as 30%; project participants are concerned and are seeking additional information into the cost escalations. He responded to questions posed. Assistant to the Utilities Director Kalscheuer provided an update on Compliance with State Recycling Update on Mandates for 2007 stating that the City has successfully diverted more than 50% of its waste from landfills and Recycling has avoided potential fines of $10,000 per day since 2001. He talked about the new system which measures how many pounds are disposed of from each city on a pounds -per -person -per -day basis and the loss of waste diversion credit that will result from Puente Hills landfill closure in 2013. He responded to questions posed. 03/23/09 PAGE THREE W1*1 DIRECTOR'S COMMENTS Dir Cmts Moved by Board Member Carrillo, seconded by Board Member Gonzales and unanimously carried to approve Spnsrshp sponsorship of Gladstone High School Football Team in amount of $200 for equipment, etc. GldstneFtbl Moved by Board Member Carrillo, seconded by Board Member Gonzales and unanimously carried to approve Spnsrshp sponsorship of Gladstone High School Cheer Program in amount of $200. Gldstn Cheer An item of subsequent need arose regarding a proposed proclamation in honor of the four slain Police Officers Item of from Oakland California and it was moved by Board Member Carrillo, seconded by Board Member Gonzales Subsequent and unanimously carried to agendize it. need Moved by Board Member Carrillo, seconded by Board Member Gonzales and unanimously carried to approve Memorial Proc the proclamation in honor of the four slain Police Officers from Oakland California to be sent to that City in Oakland time for their Memorial on Thursday, March 26, 2009. Officers Chairman Macias asked about the new economic stimulas package and if there were additional funds for green Macias jobs or apply to obtain funds. Director of Utilities Hsu responded stating that staff will be attending Funds from workshops and SCAPPA will be having workshops but they are still in the process of finalizing the rules of Economic process for the stimulas package. City Manager Delach advised that the City Engineer and Assistant City Stimulas Manager/Public Works Haes will be attending a seminar in the near future. Board Member Carrillo advised Package that there is a workshop to be held in Claremont on Wednesday at 9 a.m. funds Chairman Macias requested that a proclamation be prepared and given for a farewell celebration of Mayor Macias Hammond in Monrovia; it was referred to the April 6, 2009 agenda. Agenda Item Moved by Board Member Carrillo seconded by Board Member Hanks and unanimously carried to adjourn Adjourn TIME OF ADJOURNMENT: 7:40 P.M. SECRETARY NEXT RESOLUTION NO. 09-C28. 03/23/09 PAGE FOUR i(Iq. AZUSA RIGHT R'NAHR CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: AOSEPH F. HSU, DIRECTOR OF UTILITIESnAi i � N DATE: APRIL 27, 2009 SUBJECT:. APPROVAL OF LETTER OF SUPPORT FOR THE UPPER SAN GABRIEL VALLEY MUNICIPAL WATER DISTRICT RECLAIMED WATER PROJECT i RECOMMENDATION S It is recommended that the Utility Board/City Council approve and sign a letter supporting the Upper San Gabriel Valley Municipal Water District's reclaimed water project which will provide a reliable secondary source of recharge water for the Main San Gabriel Groundwater Basin. BACKGROUND The State of California and Southern California are currently in a drought condition that is affecting water supply statewide. A statewide effort to conserve water is underway as well as an effort to secure alternative sources of water supply. One alternative source of supply that is available to the San Gabriel Valley is reclaimed water from the San Jose Sewage Treatment Plant near the intersection of the 605 and the 60. The reclaimed water will be treated with Advanced Water Treatment (AWT), and will exceed drinking water standards before it is spread in the Main: Basin. The use of reclaimed water will provide an initial supply of 10,000 acre-feet per year and will ultimately increase to 25,000 acre-feet per year. 1 FISCAL IMPACT There is no fiscal impact to approving this letter of support. Prepared by: Chet Anderson, Assistant Director- Water Operations k i 010 Board of Directors Upper San Gabriel Valley Municipal Water District 11310 East Valley Boulevard El Monte, CA 91731 April 27, 2009 Reference: Upper San Gabriel Valley MWD Reclaimed Water Project - Letter of Support Gentlemen: We, the Utility Board and City Council of the City of Azusa, are writing this letter to affirm the City of Azusa's support for Upper San Gabriel Valley MWD's (USGVMWD) reclaimed water project. We understand that USGVMWD is developing this reclaimed water project to assure a reliable secondary source of groundwater recharge to supplement the water supply of the Main San Gabriel Groundwater Basin (Main Basin). We further understand that this reliable secondary source of water will be treated to a level of quality that exceeds the State and Federal water quality requirements for potable water which is distributed for drinking water purposes. The State of California and Southern California are entering another year of drought in what has been a continuing dry cycle for the entire Southwest. Low levels of rainfall, below average snowpack in the Sierras and the Rockies, and court imposed restrictions on water available from the Bay -Delta State Water Project (SWP) supply have combined to drastically reduce the amount of water available for import to Southern California via the SWP and the Colorado River Aqueduct (CRA). As a result, the Metropolitan Water District of Southern California (MWD) cannot commit to providing replenishment water to the Main Basin. Consequently, water levels in the Main Basin have declined to record low levels and continue to decline. The City of Azusa has been a leader in conserving the diminishing water resources of the Main Basin, and others are acknowledging the critical nature of the water supply shortage. We recognize that additional water sources are critically necessary and that the use of reclaimed water is but one component in an overall plan to combine water conservation with additional new water sources for the recharge of the Main Basin. 01i We commend the Directors of the Upper District for taking this bold step to bring reclaimed water to the Main Basin for recharge as it has done with prior projects for the direct use of reclaimed water for landscape irrigation. We and others stand ready to assist you in your efforts to bring this project to fruition. Very truly yours, Joseph Rocha, Mayor cc: San Gabriel Valley Municipal Water District Water Replenishment District of Southern California Main San Gabriel Basin Water Quality Authority Tim Jochem F. W. Delach Joseph Hsu t i 012 San Gabriel Valley Recycled Water Replenishment Project Concept Add advanced treatment to tertiary -treated recycled water from LACSD San Jose Creek Water Reclamation Plant Pump purified recycled water up to Santa Fe Spreading Grounds and points along San Gabriel River Project mirrors Orange County's new Groundwater Replenishment System New facilities adjacent to SJCWRP %tpVd lip pluo �j lvjY MS M Project Partners Upper San Gabriel Valley Municipal Water District Los Angeles County Sanitation Districts Water Replenishment District San Gabriel Valley Municipal Water District CONSENT CALENDAR TO: I HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESn/ `44 DATE: APRIL 27, 2009. SUBJECT: i RETROFIT OF WATER DIVISION DIESEL TRUCKS WITH PARTICULATE 'MATTER TRAPS TO COMPLY WITH CALIFORNIA AIR RESOURCES BOARD REQUIREMENTS RECOMMENDATION It is recommended that the Utility Board/City Council approve bid by Ironman Emissions Group in amount of $41,295.56 to retrofit three (3) Water Division diesel trucks with the Particulate Matter (PM) Traps. BACKGROUND In 2005, the: California Air Resources Board (CARB) approved a regulation pursuant to title 13, California Code of Regulations (CCR), sections 2020, 2022, and 2022. 1, the fleet rule for Public Agencies and Utilities. This rule requires a municipality or utility that owns, leases, or operates an on -road diesel -fueled heavy-duty vehicle greater than 14,000 pounds gross vehicle weight rating (GV WR) with a 1960 to 2006 model year medium or heavy duty engine to install best available control technology (BACT) to reduce particulate emissions. The regulation requires that 20 percent of the fleet be retrofitted with BACT by 2008, and then 50 percent by 2009. The installed BACT should reduce toxic diesel Particulate Matter (PM) emissions to 0.01 gram per brake horsepower hour (g/bhp-hr) or to lowest emission level possible for a specific engine without jeopardizing the original engine warranty. The Electric Division has installed the equipment on seven (7) of its trucks, thus meeting the 20% requirement for the Light & Water fleet. The Water Division has identified ten (10) diesel trucks weighing over 14,000 pounds that fall under this regulation. Of those ten (10) trucks, three (3) are exempt from the regulatory requirements due to low annual mileage, and four (4) other trucks cannot be modified until the equipment required for those trucks has been re -certified by the CARB for installation. If the equipment were to be installed and later not re -certified, the installed de -certified equipment would have'to be removed and certified equipment installed. 016 The Water Division has sought quotes to install the required equipment on the three (3) remaining trucks. Two quotes were received for installing the certified equipment, one from Diesel Exhaust & Emissions, LLC Group in the amount of $41,655.56 including sales taxes, and the other from Ironman in the amount of $41,295.57, including sales taxes. Ironman is the installer who did the work on the Electric Division's trucks. FISCAL IMPACT Award of $41,295.56 will be paid for using fiscal year 2008-2009 operating budget account 32- 40-721-903-6825 following transfers from other approved budget accounts. Prepared by: Chet F. Anderson, Assistant Director -Water Operations CARB_Ltr.pdf 017 �I t.inda S. Adarcis Sesre?arg ror Eiwrfanmeafal Prarecx n by 1.7. 2M7 J Air Resources Board Robert P. Sawyer, Ph.D., Chair 1001 1 street - R O, Box 2815 Saaa.Tyia. Cafrfanta 95812 • sant arb.ca.gov Dear City and County Officials: Amard Sctsrwnenegger Ga3Eemar In 2005,ithe California Air Resources Board (ARB or Board) approved a regulation to reduce toxic diesel particulate matter (diesel PM) emissions from diesel -fueled public agency and utility fleet vehicles beginning in 2007. Diesel PM, the tiny soot particles from diesel engines, was identified as a toxic air contaminant in 1998. Exposure to diesel PM is a significant health hazard, particularly to children whose lungs are still developing, and the elderly who may have other serious health problems. Each year in California, died PM contributes to 3,700 premature deaths, 2.200 hospital admissions, 100.0001 asthma attacks and respiratory symptoms, 8,500 cases of chronic bronchitis. 620,0001ost workdays and 3.6 million minor restricted activity days. Reducing exposure to diesel PM is one of ARB's highest priorities. 1 The !=lest Rule for Public Agencies and Utilities regulation is particularly effective because it reduces diesel PM concentrations in the heart of residential communities where municipal and utility vehicles frequently conduct business. But while the regulation brings significant clean -air benefits, it also brings cost increases to municipal fleet administrators, who already may be on very tight fiscal budgets. Depending on the age and•type of vehicle, implementing the regulation can average from $3,000 to more than $40,000 per vehicle. During the development of the regulation, one of the major issues of concern was how a municipal fleet administrator would pay for the cost of the regulation. The Board shared this concern, and approved modifications to the regulation with this in mind, including extending the initial compliance deadline for most fleets, and allowing low -population counties additional time to budget and plan for the cost of compliance. The first, implementation deadline of the regulation is December 31, 2007, when twenty percent of a municipality's vehicles between the model years 1960 through 2002 must be in compliance with the regulation. As both elected county officials and Board members, we understand compliance by many municipal fleet administrators will be challenging. Because of this, we encourage county and city governments to support the efforts of their municipal fleet administrator in comptying.with this regulation. t The enerw chsrwnge facmrg Calrfnn, ra is rest. Every Wifomlan needs to take unmedare aaron to induce energy consumpvon. Fora !ts! M simple ways you can +educe demand and cut your anergy msts, see our wvbske tetterrvMw arh go California California Environmental Protection Agency Pdmad an Redyctad Paper 018 ..n.. . -. Dear City and County Officials rhy 17, 2(X}7 Page 2 For Californians to realize the health benefits from this regulation, municipal and utility fleets must meet the challenge and reduce diesel PM in accordance with this regulation. The Board is counting on your support of your municipal and utility fleet administrators, which will aid in successful implementation of this regulation. Sincerely, Q616q� Ron Roberts, Supervisor San Diego County Board Member ti�iu-et r Mayor Ronald O. Loveridge City of Riverside Board Member ,-6*LJ Barbara Riordan, Former Supervisor San Bernardino County Board Member )'�t Jerry Mill, Supervisor San Mateo County Board Member AZUSA EIGHT R WATER CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES^ DATE: APRIL 27, 2009 W SUBJECT: AWARD OF CONTRACT FOR PROJECT WV -262, WATER MAIN REPLACEMENT IN ROWLAND AVENUE IN THE CITY OF WEST COVINA AND APPROVAL OF A BUDGET AMENDMENT FOR PROJECT WV -262 RECOMMENDATION I. It is recommended that the Azusa Utility Board/City Council approve: (1) The award of contract for Water Project WV -262 installation of 30 LF of 14 -inch; 3,546LF of 10-inch;'.and 2,233 LF of 8 -inch distribution main; installation of 9 fire hydrants; installation of 63 water services; and appurtenances in Rowland Avenue in West Covina to A.R. Sarmiento; Inc. of La Mirada, California and; (2) Resolution approving a budget amendment in the amount of $450,000 to Fiscal Year 2008- 2009 Capital Improvement Program Budget account number 32-80-000-721-7130/72107B-7130. 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 leak problems requiring constant repair and excessive manhours spent making the repairs. Also, the mains to be replaced are in streets designated by West Covina Public Works as streets to be resurfaced this year. This project will allow the Water Division to lessen the probability of leaks within the newly paved streets. i Advertisement for Bids for this project was approved at the February 23, 2009 Utility Board meeting. Bids were publicly opened March 31, 2009. Twenty—two (22) contractors submitted bids. The bids submitted were as follows: 020 FISCAL IMPACT The fiscal impact of this item'is $928,567.48. A budget item for this project has been approved by the Board in FY 2008-2009 Capital Budget Account 32-80-000-721-7130/72107B-7130. This Budget Account began the Fiscal Year with a balance of $2,958,603.00. Projects W-243, W-245, and W-245A&B were funded from this Account leaving a remaining balance of $557,494.05. The addition of $450,000.00 from the Water Fund (Account 32-00-000-000-3605) requires adoption of a resolution, and will bring Capital Budget Account 32-80-000-721-7130/72107B- 7130 to a balance of $1,007,494.05. This amendment will also provide funding for a Project Inspector for WV -262. Prepared by: Chet Anderson, Assistant Director - Water Operations 021 F Contractor Bid Contractor Bid 1 A.R. Sarmiento $928,567.48 12 Christiansen Pipeline $1,207,784.55 2 Gentry Brothers $944,034.03 13 Stephen Doreck Equi $1,210,455.32 3 Sully -Miller $985,814.72 14 Kana Pipeline, Inc $1,238,600.00 4 Garcia Juarez $1,041,206.00 15 BnBEngineering $1,262,017.63 5 E &R Construct $1,073,318.40 16 T.B.U. Inc. $1,263,576.60 6 William Pipeline $1,081,048.10 17 John T. Malloy, Inc $1,275,358.70 7 So Cal Pipeline $1,118,805.75 18 J. De Sigio Const Inc $1,377,961.00 8 Majich Bros., Inc $1,127,985.10 19 Leatherwood Const I $1,387,182.50 9 JA Salazar Const. $1,144,308.80 20 Cedro Const. Inc $1,504,455.70 10 Vido Samarzich $1,158,795.00 21 DotyBros. Equip $1,583,982.61 11 C.P. Construct. $1,199,996.60 22 Minako American $1,626,269.75 FISCAL IMPACT The fiscal impact of this item'is $928,567.48. A budget item for this project has been approved by the Board in FY 2008-2009 Capital Budget Account 32-80-000-721-7130/72107B-7130. This Budget Account began the Fiscal Year with a balance of $2,958,603.00. Projects W-243, W-245, and W-245A&B were funded from this Account leaving a remaining balance of $557,494.05. The addition of $450,000.00 from the Water Fund (Account 32-00-000-000-3605) requires adoption of a resolution, and will bring Capital Budget Account 32-80-000-721-7130/72107B- 7130 to a balance of $1,007,494.05. This amendment will also provide funding for a Project Inspector for WV -262. Prepared by: Chet Anderson, Assistant Director - Water Operations 021 F RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AMENDING THE FISCAL YEAR 2008-2009 CAPITAL IMPROVEMENT PROGRAM BUDGET FOR THE WATER UTILITY TO AUTHORIZE APPROPRIATIONS NECESSARY TO FUND THE CONSTRUCTION OF PROJECT WV -262 WATERLINE REPLACEMENT IN ROWLAND AVENUE IN THE CITY OF WEST COVINA WHEREAS, the City's water utility has a program of replacing water mains that are experiencing a large and frequent number of leaks; and i WHEREAS, the Water Division has approximately 5,809 linear feet of water pipeline that requires replacement; and WHEREAS, a budget amendment in the amount of $450,000 is required from the Water Fund to fund Project WV -262; and s WHEREAS, Azusa Municipal Code Section 2-450 requires that all budget amendments between $100,000 and $1 million be approved by resolution; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, DOES HEREBY RESOLVE 'AS FOLLOWS: f SECTION 1. That the City Council finds that it is necessary for the City to replace water mains that are experiencing a large and frequent number of leaks. SECTION 2. That the Water Utility's Fiscal Year 2008-2009 Capital Improvement Program Budget account number 32-80-000-721-7130/72107B-7130 is hereby amended in the amount of $450,000 for the purpose of authorizing an award of contract to the low bidder on Project WV -262. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED THIS 27th day of April, 2009. s Joseph Rocha, Mayor ATTEST: Vera Mendoza, City Clerk 022 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City Council of the City of Azusa at a regular meeting of the Azusa Light & Water Utility Board on the 27th day of April, 2009. AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Vera Mendoza, City Clerk ()24 AZUSA _Ohl L W41f\ s CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 27, 2009 SUBJECT:' APPROVAL OF A PROFESSIONAL SERVICES CONTRACT WITH D. WREN & ASSOCIATES TO PERFORM INSPECTION SERVICES ON PROJECT WV -262 WATER MAIN REPLACEMENT IN ROWLAND AVENUE IN THE CITY OF WEST COVINA. RECOMMENDATION It is recommended that the Utility Board /City Council approve a Professional Services Contract in the amount of $25,560.00 to D. Wren & Associates to provide inspection services on Project WV -262. i BACKGROUND I Construction on Project WV -262, Water Main Replacement Project on Rowland Avenue has been bid and will require inspection. Following the March 23, 2009 Utility Board approval of the Request foi Proposals for this inspection contract, five (5) qualified and experienced inspection services consultants were requested to submit proposals for this project and five (5) consultants responded:; D. Wren & Associates $25,560.00 SA Associates $33,000.00 Civiltec Engineering $47,000.00 Valli Cooper & Associates $59,000.00 Willdan Engineering $61,390.00 D. Wren &Associates has inspected past projects for the Water Division. 024 FISCAL IMPACT The fiscal impact of this item is $25,560.00. A budget item for this project has been approved by the Board in the FY 2008-2009 Capital Budget Account 32-80-000-721-7130/72107B-7130. Prepared by: Steven Yang, Administrative Analyst Chet Anderson, Assistant Director -Water Operations 025 81M G. AZUSrr CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 27, 2009 v �S SUBJECT: ADDITIONAL COMPENSATION TO BLACK & VEATCH FOR EXTRA COST RELATED TO ADDITIONAL WORK FOR THE CANYON MEMBRANE WATER TREATMENT PLANT UPGRADE AND EXPANSION PROJECT CONSTRUCTION MANAGEMENT ENGINEERING SERVICES RECOMMENDATION i It is recommended that the Utility Board/City Council approve the addition of $102,000 to the Black & Veatch (B&V) contract to provide Construction Management Engineering Services for Canyon Membrane Water Treatment Plant (WTP) Upgrade and Expansion Project, project WVF-207. BACKGROUND L At its regular meeting held on November 20, 2006, the City Council approved. the award of the contract for consultant construction management services for the membrane treatment upgrade and expansion of the Canyon Filtration Plant to Black & Veatch Corp. for an estimated cost of $1,147,000, The construction of the plant improvements began January 29, 2007, and the completion :of the project has extended beyond the adjusted project completion date of December 17, 2008. During the course of the project, various additions and changes to B&V's Scope of Services were necessary for the prosecution of the construction project and $326,800 was added to the contract cost by the Utility Board at its July 28, 2008 meeting bringing the contract cost to $1,473,800; Currently, Substantial Completion is projected to occur in late April of 2009. Because the project completion -has extended past the adjusted project completion date of December 17, 2008, B&V's construction management work has gone beyond the additional scope and budget that was approved at the July 28, 2008 Utility Board meeting. As a result, various changes to the B&V Scope of Services and compensation for the costs thereof are necessary. Included as an attachment'to this Agenda Item is a letter from Black & Veatch elucidating those changes and M1 the costs associated with each change. The reasons for B&V's request for those changes to the B&V contract are, by item: Contractor delays, excusable and non excusable Construction work has continued to proceed at a slower pace than was anticipated at the time the Scope of Services for the Black & Veatch contract between the City and B&V was amended July 28, 2008. Due to delays, Black & Veatch's amended budget was expended at the end of March. Some of the delays in completion may be excusable which will add extra time to the contractor's substantial completion date; some delays will be determined to be non -excusable and subject to liquidated damages. At this time a substantial completion date at the end of April, 2009 is anticipated. Items beyond the amended scope of services and timeframe Proiect Manaeement Project management for the project in the months of January and February included a Project Manager, a Project Engineer, in-house Project Accounting staff, and in-house project administrative staff. The time expended by this staff totals 102 hours for which Black & Veatch is requesting additional compensation. Project management activity to the end of the project includes coordination of project construction and startup; review of progress payment applications and final payment application by SSC; progress meetings; project close out documentation and negotiation and related meetings; and part-time inspection to the end of the project. Black & Veatch has included an estimate for the budget required is included in the $102,000 requested. Resident Engineer Additional Time The additional onsite inspection hours and clerical hours totaling $80,000 in additional funding was expended at the end of February. Because the pace of the work to be completed has slowed, Black & Veatch proposes to have a part time inspector observe the project to its conclusion. In addition, Black & Veatch is requesting to be compensated for only 50% of the fulltime resident inspector's time in January and February. These amounts for Resident Engineer for January and February and March to Final Completion are included in the $102,000 requested. FISCAL IMPACT The fiscal impact of this additional cost is $102,000 which represents an additional 8.9% to the final cost of Black & Veatch's original construction services contract. Total additions to the Black & Veatch contract to date are $428,800 (37.3%). This additional cost will be paid from Account 32-80-000-721-7130/72107C-7130. Prepared by: Chet Anderson, Assistant Director- Water Operations 027 a. BLACK & VEATCH 15615 Afton Parkway, Sufte 300 Black & Veatch Corporation Irvine, Cal bmia 92616 Tel: (949) 753-0500 Fax: (949)753-1252 Azusa Light and Water . B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade B&V File A.2 and Expansion Project April 15, 2009 Mr. Chet Anderson, P.E. Assistant Director of Utilities — Water Operations Azusa Light and Water 729 N. Azusa Ave. Azusa, CA 91702 f. Subject: Engineering Amendment Request t Dear Mr. Anderson: As a follow-up to our discussion on Tuesday April 7, 2009, we are sending this revised letter requesting an amendment to our engineering services budget for the Canyon Filtration Plant Membrane Treatment Upgrade and Expansion project. Construction Status and Contractor Delays Construction on the Canyon Filtration Plant is progressing with work on all major structures mostly complete and the plant currently in startup phase. As of the end of March 2009, SSC is estimated to have achieved the following level of completion of the project work: ,w: SSC Contract Time Spent 115.12% SSC Contract Work Completed 99.19% 'w; Original Contract Completion September 20, 2008 1, Current Contract Completion December 17, 2008 The construction work is proceeding at a slower pace than planned and as a result SSC is almost three months past the project completion date of December 17, 2008. As of today, the following construction activities are ongoing: • Painting of 4.0 MG finished water reservoir (completed in March 2009) • Mikellaneous painting and cleanup activities • Membrane system startup • Controls and HMI programming The plant is undergoing startup activities including the membrane system, controls, and HMI configuration. It should be noted that the Department of Public Health (DPH) has not yet completed its review of the operating permit amendment application. Scheduling of the connection of the new WTP to the potable water distribution system continues to be on hold pending DPH approval of the operating permit. The Operations Plan was submitted to DPH on November 6, 2008. We received comments on the Operations Plan from DPH on March 20, E Black II Veatch Corporation • 15615 Afton Parkway, Suite 390 - Irvine, Calilomia 92616 USA - Telephone 949.753.0500 - Fax 949.753.1252 021 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File A.2 Engineering Amendment Request April 15, 2009 2009. We have incorporated the comments and submitted the revised Operations Plan to DPH on April 1, 2009. DPH is currently reviewing the revised Operations Plan. It is expected that the WTP will be ready for the 7 day field performance test in late April, 2009. Successful completion of the field performance test along with the completion of construction activities as defined by the contract documents will mark the substantial completion of the project. The remaining activities such as final punch list items, fencing, and landscaping along with the final connection to the distribution system piping will need to be completed by SSC before the project can achieve the Final Completion status. B&V Engineering Budget Status The engineering services provided by the Black & Veatch team are progressing in response to the contractor's construction work. B&V received an amendment from ALW in September 2008 to perform the engineering services through December 2008, which was the revised substantial completion date projected by SSC at the time the amendment request was approved. We have monitored our budget expenditures closely since September 2008 and as a result, we were able to continue to provide engineering services two months beyond December 2008 with the current approved budget amount. As of the end of February, 2009, we have expended our engineering services budget. A request is hereby made for additional budget to perform the remaining services on this project based on the current schedule projections by SSC and to perform the remaining activities which are outlined below. Schedule for Project Completion. Current schedule projections by SSC indicate that the project may continue through end of May 2009. Activities that are envisioned till the end of May include: • Complete miscellaneous painting, and cleanup • Complete startup of membranes and plant startup (estimated to be complete by Mid April, 2009) • Chemical system loop tuning and checkout (completed end of March, 2009) • Plant HMI and existing HMI Programming (estimated to be complete mid-April, 2009) • Field System Performance Test (estimated to be complete end of April/early May 2009) • Landscaping (estimated to be complete end of May, 2009) • Tracer Study (after DPH permit approval) • Final connection to the distribution system piping (after DPH permit approval) • Final punch list Page 2 029 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File A.2 Engineering Amendment Request April 15, 2009 B&V Out of Scope Services Our current contract calls for resident inspection services and project management through December'2008. Work has been required that is outside the scope of our current contract as follows. I Full Time'Resident Inspection (January -February 2009) The amendment approved by ALW in September 2009 included a budget of 544 hours for John Boss' time and 26 hours for clerical support till the end of December 2009. John spent. 560 hours andthe clerical support spent 16 hours time from Sep to Dec 2009, which equals the budgeted number of hours. For the month of January and February of 2009, John has spent a total of 308 hours performing full time resident duties and the clerical support has spent 7 hours. Since the construction activities performed by the Contractor during this time were proceeding at a slower pace, ALW asked B&V to review if full-time inspection was warranted during these months. B&V has reviewed this request and for January and February 2009, we are requesting John's time for performing the resident inspection services on a half-time basis. t a Project Management Activities (January -February 2009) These activities included the Project Manager and supporting staff's time for coordinating with ALW and SSC with regards to construction and startup activities, and internal project management and accounting activities. In April 7, 2009 meeting, ALW requested B&V to a review the'l hours spent and provide a breakdown of the project management activities performed during these months. We have reviewed the time spent performing these activities and the hours spent were 60 hours for January and 42 hours for February, 2009. The following table provides the activities performed by the various members of the Project Management Team: Name Duties Performed Hours Spent i (Jan/Feb 2009) Ashu Shirolkar, PM . Attend construction progress meeting (jan 29, 36 2009) • Attend DPH site visit meeting (Feb 5, 2009) • Coordination with contractor and Azusa Light and Water • Internal project management and accounting Jake Holden, Project . Attend bi-weekly construction progress meetings 40 Engineer (5 meetings) • Coordination with Contractor and ALW Project Accounting Staff . Tracking Budget 12 (Carmen Haynes, Sara . Preparing Draft and Final Invoices Beth Heaviland, Hazel Boyd) Project Administration Project Administration Support 14 Staff (Rashelle Smith, . Clerical Support Cynthia McIntire Page 3 030 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File A.2 Engineering Amendment Request April 15, 2009 Project Management and Resident Inspection (March — May 2009) In addition, moving forward, we are anticipating that the following activities will be required through the end of May, 2009 (the projected project completion date): • Project management activities including coordination with SSC and ALW with regards to the project construction and startup. Review of progress pay application and final pay application will be performed. • Construction progress meetings (2 meetings budgeted). B&V's PM will attend a monthly progress meeting with SSC and attend bi-weekly meetings via conference call. B&V's . resident will be present at all meetings. • B&V's PM will attend one meeting with contractor and ALW to discuss the project close-out documentation and change order negotiation. This meeting is intended to discuss the documentation needed at the project close and also to negotiate outstanding change orders. • Resident inspection. B&V's resident John Boss provided full time resident inspection through March 13, 2009. From mid-March through May 2009, part-time resident inspection (two days a week) is considered to be an appropriate level of presence to assure the project is completed according with the contract documents. Jake Holden has been performing part-time inspection from Mid -March 2009. Page 4 031 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File A.2 Engineering Amendment Request April 15, 2009 I i We have estimated the following hours and fee estimate for our services through end of May, 2009 (projected final completion date). Summary of Additional Work Page 5 p32 v 1 a a c I Full-time Resident Inspection (January -February 2009) 161 $24,000 j � p `o 9 102 $17,100 .. Project Management Activities (January - February 2009) x i Resident Inspection (March - May 2009) (Part-time 254 $35,800 inspection, 2 days a week) NProject Management (March — May 2009) 104 $18,400 O R i 3 Z Onsite Meetings (2 progress and 1 final close-out) i 28 $6,700 Total Additional Budget Requested 649 $102,000 Page 5 p32 Azusa Light and Water B&V Project 140777 Canyon Filtration Plant Membrane Treatment Upgrade and Expansion File A.2 Engineering Amendment Request April 15, 2009 Summary Construction of the project is nearing completion. While SSC is significantly behind schedule, the overall quality of the contractor's work has been satisfactory. We are working closely with SSC and ALW to bring this project to close while assuring the work is completed in conformance with the contract documents. To perform the services outlined for the project's anticipated remaining duration of 3 months; we request an amendment to our contract for the additional work items summarized in this letter. Please contact us if you have questions or require additional information. We are prepared to meet with you at your convenience to discuss these matters further. CC: Joseph Hsu, P.E. Very truly yours, BLACK & VEATCH Steven N. Foellmi, P.E. Vice President/Project Manager Page 6 n.31 11 CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES v DATE: 1. APRIL 27, 2009 SUBJECT AB 87 (DAVIS)/SUPPORT RECOMMENDATION It is recommended that the Utility Board/City Council adopt a Support position for Assembly Bill 87 (Assembly Member Mike Davis -Los Angeles) and authorize the Mayor to sign letter to advocate adopted position. BACKGROUND Following the passage of AB 2449 (Levine, Statues of 2006) which became effective on July 1, 2007, the City Council approved Resolution 08-C29 in April 2008 to join the Los Angeles County single -use bag reduction and recycling program, with the goal of decreasing the disposal rate by 30 percent by July 1, 2010 and by 65% by July 1, 2013. This bill requires supermarkets to make at -store containers available for collection and recycling of plastic carryout bags, as well as provide reusable bags for purchase. Currently, supermarkets and retail stores must maintain specific records, including the number of plastic carryout bags shipped to the store and the weight of all plastic carryout bags recycled. These records must be submitted to California Integrated Waste Management Board on annual basis in order to measure how many plastic bags get recycled. This legislation expires on January 1, 2013. Although AB 2449 was a good first step, the continued availability of free plastic bags to customers does not foster the use of reusable bags, ensure collection and recycling of plastic grocery bags, and does not reduce the prevalence of single use bags in the litter stream. AB 87 was introduced this year to address these concerns and would require large supermarkets and retail stores to charge a fee of 25 cents per plastic or paper single use bag effective July 1, 2010. 034 Majority of the funds collected would be made available to local government on a per -capita basis for litter reduction programs. This bill, which passed the Assembly of Natural Resources on April 13, is being supported by the Los Angeles County, who has requested cities participating in the single use bag reduction program to also adopt a Support position on this bill. In February 2009, the City of Azusa kicked off its reusable bag program where residents receive free reusable bags from participating stores and City events to help reduce the number of plastic bags in the litter stream. Since funding is limited, free bags will only be distributed while supplies last. The passage of AB 87 will help the City receive funds to help expand its program and ensure that Azusa residents will not only receive free bags but must use them as well; otherwise, they pay 25 cents each for plastic or paper bag from supermarkets. FISCAL IMPACT There is no immediate fiscal impact to supporting this bill. If the bill passes, funding will be made available to cities to help expand reusable bag program or other litter reduction programs. Currently, AB 939 fees are used for this program. Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities Liza Cawte, Administrative Technician Attachment: lkl AB87-support Letter. pdf •y. 035 r April 27, 2009 Assembly Member Mike Davis State Capitol Room 2160 VIA U.S. MAIL AND FAX Sacramento, CA 95814 (916) 319-2148 SUBJECT: AB 87 (DAVIS)/SUPPORT Dear Assembly Member Davis: On behalf of the City of Azusa, I would like to express our support for AB 87, which would prohibit, on and after July 1, 2010, a store, as defined, from ptoviding single -use (plastic and paper) carryout liags to a customer unless the store charges a $0.25 per bag fee at the point of sale. i We support efforts that increase plastic and paper bag recycling and reduce the use of single use carryout bags. Each year, approximately 19 billion plastic carryout bags are consumed in California. At the same time less than 5 percent of those bags are recycled, with the remainder disposed in landfills or end up as litter on our beaches, waterways, parks and roads. As a result, each year local and state; governments spend tens of millions of dollars on litter prevention, cleanup, and enforcement activities. Communities throughout California are grappling with this issue and are searchingi for ways to reduce the impact that litter has on our quality of life. Experience has shown that imposing a fee at the point of sale on plastic and paper bags can significantly reduce the consumption of these bags. AB 87 would help reduce bag litter and other environmental impacts at the source, while providing local governments with additional resources to successfully address this issue. We look forward to working with you and other stakeholders to support the bill as it moves through the process. Sincerely, Joseph R' Rocha Mayor , Cc: Azusa City Council/Utility Board Uriel Macias, Chairperson ' Robert Gonzales, Vice Chairperson 'Angel Carrillo, Board Member Keith Hanks, Board Member Francis M. Delach, City Manager Joseph F. Hsu, Director of Utilities Los Angeles County Department of Public Works 036 ) W AZ rm a weUSA nr CONSENT CALENDAR TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES�� DATE: APRIL 27, 2009 SUBJECT:! NOTICE OF COMPLETION FOR PROJECT LD2008-3 REFURBISHING THE EXISTING CHAIN LINK FENCE AT AZUSA SUBSTATION RECOMMENDATION It is recommended that the Utility Board/City Council accept Project LD2008-3 as complete and direct the City Clerk's Office to execute the Notice of Completion and have the same recorded in the Office of the Los Angeles County Recorder. i BACKGROUND i Chain link fence around perimeter of Azusa Substation has been refurbished as per plan & specifications for project LD2008-3. The awarded contractor for this project is Pacific Industrial Electric. Project construction started on March 10, 2009 and was completed on April 9, 2009. Staff has inspected the completed project and determined it to be in compliance with the plans, specifications and conditions of the contract. FISCAL IMPACT This project was budgeted under Capital Improvement Projects and this Notice of Completion action will have no fiscal impact. It was completed on time and within budget. Prepared by: Hien K. Vuong f 037 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: NAME Azusa City Clerk STREET ADDRESS 213 E. Foothill Blvd. CITY, STAn& Azusa, CA 91702 ZIP CODE NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, most be Filed within 10 days after completion. (See reverse side for Complete requirements) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is The Ciry of Azusa 3. The full address of the owner is 213 E. Foothill Blvd.. Azusa, CA 91702 4. The nature of the interest or estate of the owner is: In fee OFOTffA THAN FEE, STWRE M FEE ANO MSERT. FOR EXAMPLE. PURCHASER UNDER CONIAAR OF PURCHASE OR LESSEE) 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: IUAT.1*1 ADDRESSES 6. The full names and full addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to: NAMES ADDRESSES 7. A work of improvement on the property hereinafter described was completed on April 09, 2009 The work done was: Refurbish Azusa Substation Perimeter Chain Link Fence as per Specification LD2008-3 8. The name of the contractor, if any, for such work of improvement was Pacific Industrial Electric . 230 N. Orange. Brea, CA 928214026 March 2. 2009 LIFNOCO,F MRMRW UR MPROVFMENTASAWHOL$NSERTNDNEI (DATEOFOONINAM 9. The property on which said work of improvement was completed is in the City of Azusa, County of Los Angeles, and Stale of CA; and is described as follows: Azusa Electric Substation 10. The street address of said property is 809 N. Angeleno avenue. Azusa. CA 91702 Dated: Josenh R. Rocha, Mayr ISI@ATURE OF G"ER ORCORPOMT:OiflCFR OF OW ERNA MIH PARAORAPH2 OR HIS AGENT) . VERIFICATION 1, the undersigned, say: I am the person who signed the foregoing notice. I have read said notice of completion and know its contents, and the facts stated therein are true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed at Azusa, California, this day of April, 2009 (SIGNATURE) 038 AZUSA AZ CONSENT CALENDAR TO: I HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 27, 2009 SUBJECT: REIMBURSEMENT TO COVINA IRRIGATING COMPANY FOR INSTALLATION OF 24 INCH CONNECTION TO AZUSA'S CANYON WATER TREATMENT PLANT TRANSMISSION LINE RECOMMENDATION I It is recommended that the Utility Board approve reimbursement to Covina Irrigating Company (CICo) for the installation of approximately forty feet of pipeline and appurtenance equipment to extend the Water Treatment Plant (WTP) transmission line to connect to an existing Azusa transmission line in Sierra Madre Avenue, creating the connection of the WTP to the Azusa water distribution system. BACKGROUND In its regular meeting March 24, 2008, contract to Ken Thompson Inc. for transmission line from the water tre Drive, and then south olaan Gabriel Sierra Madre Avenue. W-243 was ac i Ale lity Board of the City of Azusa awarded the W-243 to install a 24 -inch diameter water td!the west through a private road, Daybreak b3 connect to an existing 24 -inch waterline in as complete January 26, 2009 During the, construction of project W-243 it occurred to staff that the connection of the WFP 24 - inch transmission line to the existing waterline in Sierra Madre Avenue would conflict and create extended interruption of traffic on Sierra Madre Avenue due to the pending installation of 42 - inch and 30 -inch waterlines at the same location by CICo and the City of Glendora respectively. Staff deleted the connection of the WTP transmission pipeline to Sierra Madre from Thompson's W-243 contract and terminated the new 24" waterline temporarily in a vault just north of Sierra Madre Avenue. BE An arrangement was then made with CICo that CICo include the installation of the Azusa 24 - inch transmission line connection in their bid documents as a line item, and its contractor was to install Azusa's connection and CICo was to then invoice Azusa for the costs associated with the installation of the connection. The low bidder for the CICO project, Leatherwood Construction, bid $60,000 to make the connection. One Change Order was added for site condition changes, bringing the line item total to $68,226.90. The construction of the said connection by CICo's contractor is in progress and should be finished soon. Staff recommends approval of the reimbursement of $68,226.90 to CICo to allow CICo to pay the contractor when payment is due. If Azusa was to hire its own contractor, the additional costs associated with bidding and administering a separate contract, and additional repaving and delaying in the opening of Sierra Madre Avenue would not be very prudent. FISCAL IMPACT The fiscal impact of the reimbursement agreement would be $68,226.90 and will be funded from Budget Account 32-80-000-721-7130n2107B-7130. Prepared by: Chet F. Anderson, P.E. — Assistant Director- Water Operations M1 MONTHLY REPORT APRIL, 2009 PROJECT: MEMBRANE TREATMENT UPGRADE OF THE CANYON FILTRATION PLANT PROJECTNO.: WVF-207 GENERAL CONTRACTOR: SSC CONSTRUCTION INC. DESIGN ENGINEER: BLACK & VEATCH INC. CONSTRUCTION MANAGER: BLACK & VEATCH, INC. PROJECT CONTRACT AMOUNT: $35,905,500.00 CHANGE ORDERS TO DATE: $100,642.76 24 $164,975.54 2 $57,261.33 34 $22,693.21 0 $9,454.31 88 $90,761.23 Total CO's $71,407.91 $93,005.85 MONTHLY ACTIVITIES Construction progress meetings were held Mar 26, Apr 9, & Apr 23 As of 04/23109 Landscapers onsite installing plantings Plant operators' in training Subcontractor TSI setting up WTP SCADA Chemical Feed building startup Reservoir painting complete General piping painting and finish work MARCH PROGRESS PAYMENT REQUEST: $179,749.12 TOTAL PAID TO DATE $36,126,744.28 AMOUNT TO ESCROW* $2,367,979.48 PROJECT PERCENT COMPLETE 98.930/6 uP N MARCH PTD $35,946,995.16 'Fixed amount $36,515,702.14 EXTRA DAYS 10 Approved July 23, 2007 14 Approved Sept 24, 2007 4 Approved Nov 26, 2007 0 Approved Feb 25, 2008 24 Approved July 28, 2008 2 Approved Oct 27, 2008 34 Approved Jan 26, 2009 0 Approved Feb. 23, 2009 88 Total CO's $610,202.14 . (1.70q over bid price) MARCH PTD $35,946,995.16 'Fixed amount CW404b* AZUSA �, . S INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES DATE: APRIL 27, 2009 SUBJECT: LODI #2 PROJECT UPDATE This is a project status report regarding Lodi #2 Project. No action is required by the Utility Board at this time. Relevant Ptoiect Activities in the Past Six Months: The project planning and permitting activities are progressing on schedule. The major planning and permitting activities in the past six months are as follow: i • Application for Certificate (AFC) was submitted to California Energy Commission on September 10, 2008 • Application for air permit was submitted to the San Joaquin Valley Air Pollution Control District on August 29, 2008 • . AFC was deemed data adequate by the CEC on November 20, 2008. This marks the commencement of official review of the project by the CEC which is expected to take about 12 months • Completed the detailed engineering specification bid package on November 14, 2008 • Power island public bid opening took place on December 1, 2008 • CEC workshops/Hearings regarding Lodi #2 Project were conducted on January 15 and February 23, 2009 The upcoming activities in the next few months are as follows: • Preparation for project financing will take place from now until the end of this year • Final CEC and air permits issued by November 2009 • Final decision to construct the project and finalization of project agreements by December 2009 • Release project for construction by January 2010 • Commercial operation date is estimated to be April 2012 042 Proiect Budeet and Cost Estimates The project is within budget to complete Phase 2 planning, engineering, and power island procurement activities. The Phase 2 budget is approximately $40 million. Azusa's share is approximately $1 million. However, the updated cost estimate for the construction has risen substantially from the initial cost estimate dated August, 2008 as follows: Original Cost Estimate (August 2008): • 255 megawatts combined cycle baseload power plant • Additional 25 megawatts of peaking power capability • Power plant efficiency = 7,000 btu/kWh • Total estimated cost (inclusive of Phase 2 costs) = $320 million Updated Cost Estimate (April 2009): • 302 megawatts combined cycle baseload power plant • No peaking power capability • Power plant efficiency = 6,600 btu/kWh • Total estimated cost (inclusive of Phase 2 costs) = $430 million The substantial cost increase from $320 million to $430 million is attributed to the following factors: About half of the cost increase ($55 million) is due to the larger project, from the original 255 megawatt baseload configuration to 302 megawatt baseload configuration. Upon the evaluation of power island equipment bids received in early December, the project manager concluded that a larger power plant provides the best combination in terms of plant efficiency and the economy of scale. On a per kw installed basis, the larger plant cost with this increase is about $1,240/kW vs. the original cost estimate of $1,250/kW or about equal, however the efficiency gain of a larger plant is about 6% (from 7,000 btu/kWh down to 6,600 btu/kWh). Staff concurs with the project manager's recommendation to increase the size of the plant for efficiency gain for overall reduced generation cost. 2. The remaining half of the cost increase ($55 million) is due to the additional financing cost given the current conditions of financial markets. Traditionally muni project of this size is debt financed at the start of the construction. As the construction and procurement activities are ramped up, moneys from the debt financing are used to pay for the costs. Until the moneys are disbursed to pay for the costs of equipments and construction activities, such moneys are deposited in short term money market accounts earning interests to defray the interest cost of long term debts. However, in the current financial 043 market conditions, the interest spread between the long debt and short debt has widened considerably (long term 30 -year muni debt in the A category is about 6% whereas short term interest rate is practically zero) and is not expected to tighten up in the foreseeable future. Because of this fact, the project financing cost has arisen considerably due to the additional financial carrying cost during the construction and the resulting additional long term financing costs. The financial market development in the past 10 months could not have been reasonably anticipated and thus this cost increase was not foreseen when the original cost estimate was prepared in August, 2008. The impact of this cost increase is approximately an additional $2/MWh in the cost of power generation or about 3% of the total cost of generation. Despite of the substantial cost increase of the project, the project remains to be economically viable when compared to the alternatives reviewed by staff albeit the cost -benefit ration has narrowed somewhat. Staff will continue to be engaged in the Phase 2 planning and engineering activities, the ultimate decision whether to proceed with the construction will be made by the project participants this summer once the parameters of financing and project costs are further refined. Prepared by: Bob Tang, Assistant Director of Resource Management 044 I� i INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES\}� DATE: APRIL 27, 2009 �P' r SUBJECT:' CALIFORNIA NEW ELECTRICITY MARKET UPDATE As previously reported to the Board, the California Independent System Operator (CAISO) started operating a new electricity market on April 1, 2009. This new market is called Market Redesign and Technology Upgrade (MRTU). The MRTU is a centrally clearing electricity market, like a stock market for electricity whereby sellers submit offers to sell and buyers submit bids to buy+electricity on an hourly basis. The MRTU is a second attempt to implement a centralized 'electricity market, the first attempt 10 years ago ended in a disaster culminating in California energy crisis. Staff is pleased to report that the MRTU launch went smoothly without. major problems. CAISO is able to close the market on time every day at 10:00 am sharp Monday through Sunday, and publish the market results by 1:00 pm sharp Monday through Sunday. As of today, CAISO has published preliminary financial settlements through April 19 and we are able to validate the majority of'financial charges. The feared extreme market outcomes and charges experienced during the market simulations so far have not occurred which is a great relief. Staff does observe that the new MRTU market is substantially more complex than the market that existed'before April 1st and the shear complexity is a concern in itself as it has the potential of inviting market manipulation and abusive behaviors. The financial settlement aspect is also much more"complex than the previous market regime as there are many more charge types to track and settle (a total of 115 individual charge types) requiring much more of staff's time in performing settlement functions. Staff will provide periodic update to the Board regarding the performance of the new electricity market in California. " Prepared by: i Bob Tang, Assistant Director of Resource Management s 0 rn Water rate hike for 55,000 county residents passes preliminary vote -Latest News - Page 1 of 1 THESAC RAMENPOBEE sacbee.corn S + This story is taken from Sacbee / Latest News _...:........._..1......._..........-........................_..._................._._.......... _ _....................._............... ............... .._._....................... Water rate hike for 55,000 county residents passes preliminary vote rlewis@sacbee.com Published Tuesday, Apr. 21, 2009 Water rates are likely going up for about 55,000 customers in Sacramento County between Rancho Cordova and Elk Grove. A split Sacramento County Board of Supervisors followed Sacramento County Water Agency recommendations and approved a preliminary reading of an $8 -a -month increase for most flat -rate customers, effective July 1, followed by a $6.50 increase one year later. This would raise monthly fees for the typical single-family flat -rate customer in both zones 40 and 41 from the current $42.80 per month to $50.80 starting July 1 and $57.30 starting July 1, 2010. Metered customers also would see rate increases; the quantity rate for metered residential customers Iwould go up 28 percent and for commercial customers it would go up 2 percent. The typical; metered residence would see the bill go from $42.50 per month to $53.24 on July 1 and up to $60.05 the following year. The water agency pushed for the increase, which was announced in February as necessary to help repay{$418.7 million in bond debt for capital projects. Supervisor Susan Peters, Jimmie Yee and Roberta MacGlashan voted for the increase. Supervisor`s Roger Dickinson and Don Nottoli voted against the fee hike. I "This sends the wrong message in this economy," Nottoli said before casting his vote. The ordinance will be on the board's May 12 consent agenda. s ShareThis I http://www.sacb.ce.com/latest/v-print/story/1798737.html 046 4/22/2009 TO: FROM: DATE: SUBJECT: AZUSA L CMT d WATER DIRECTORS' ITEM HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FRANCIS M. DELACH, CITY MANAGER JOSEPH F. HSU, DIRECTOR OF UTILITIES APRIL 27, 2009 DISCUSSION ON FUTURE MEETING DATES FOR BUDGET STUDY SESSIONS, JOINT MEETINGS AND CITY HALL ON -THE -MOVE EVENTS. RECOMMENDATION It is recommended that the Utility Board/City Council discuss possible meeting dates and set schedules or tentative dates for future meetings. I BACKGROUND The International Council of Shopping Centers conference for Economic Development marketing is coming up necessitating the cancelation or rescheduling of the regular City Council meeting of May 18, 2009. Following optional dates are proposed for your consideration to handle City Council business in the coming weeks: Monday, May 11: Possible City Hall On -The -Move in conjunction with the Bookmobile % at Memorial Park. Tuesday, May 26: Utility Board and joint City Council Meeting for Preliminary Budget ./ review. Wednesday, June 3: Tentative Preliminary Budget Study Session if needed. f P. it. 7, Monday June 8: Tentative Preliminary Budget Study Session if needed. Monday, June 29: Joint City Council / Planning Commission Meeting on Housing J Element. Thursday July 30: Concerts In The Park; City Hall On -The -Move. I Any other date for proposed meetings shall be discussed during the meeting. FISCAL IMPACT None at this time. Prepared by: Francis M. Delach, City Manager EM