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AZUSA
LIGMI A'd'AM
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL
CLIFFORD MURRAY ELEMENTARY SCHOOL (CAFETERIA) DUNE 25, 2007
505 E. RENWICK ROAD 6:30 P.M.
AZUSA, CA 91702
AZUSA UTILITY BOARD
KEITH HANKS
CHAIRPERSON
ANGEL A. CARRILLO IOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
URIEL E. MACIAS ROBERT GONZALES
BOARD MEMBER BOARD MEMBER
6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION
(PersonlGroup shall be allowed to speak without Interruption up to five (S)minutes maximum
time, subject to compliance with applicable meeting rules. Questions to the speaker or
responses to the speaker's questions or comments shall be handled after the speaker has
completed his/her comments. Public Participation wlll be limited to sixty(60)minutes time.)
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.
0'01
B. CONSENT CALENDAR
I. Minutes. Recommendation: Approve minutes of rescheduled regular meeting on May 17, 2007 as
written.
13-1. Minutes-May
17.doc
2. Approval of Agreement Amendment with Northrop Grumman. Recommendation: Approve
Amendment No. 2 to Temporary License Agreement with Northrop Grumman for use of a portion of
the southeast parking lot for a temporary 12-inch waterline.
B-2.
NorthropAgntAndNo
3. Approval of Customer Service Representative Uniforms Uniform Policy. Contract with Cintas.
and Budget Amendment for Initial Uniform Purchase. Recommendation: Approve (1) uniform
wardrobe recommendations, (2) Light 8.Water Customer Service Representative Uniform policy, (3)
contract to be awarded to Cintas, (4) budget amendment of$14,000 for initial uniform purchase.
B-3. CSR Uniform
607.DOC
4. Request to Extend and Modify DRIP Rebate Program. Recommendation: Approve the extension of
modified DRIP Rebate Program and funding level of $100,000 per fiscal year from the water fund until
the program is either modified or terminated.
B4. DRIP Rebate
Programdoc
5. Approval of Purchase of Pilot eMAC Heating. Ventilation and Air Conditioning (HVAC) Control
System. Recommendation: Waive formal bidding procedures to award the purchase and installation
of pilot wireless internet-based HVAC monitoring and control system to Maximum Performance Group
at a cost of $108,000 to be paid from Public Benefit funds, and approve fiscal year 2007-2008 Capital
Improvement Project in same amount.
B-S. HVAC
Controller.doc
2
002
6. Standard Capacity Product Confirmation Agreements with Dyneev and Shell Trading:
Recommendation: Authorize the procurement of standard capacity products from Dynegy for
calendar year 2008 and Shell Trading for calendar year 2009 in partial fulfillment of the City's resource
adequacy obligations to California Independent System Operator (CAISO), and authorize the Mayor to
execute Confirmation Agreements.
&6.Capacity
Product Purchases.do
7. Approval of Contract for Underground Conduit Installation. Recommendation: Award contract to
BnB Engineering, Incorporated in amount not-to-exceed $7,200 to furnish and install underground
electric conduits at Foothill Boulevard and Palm Drive.
&7.ConduitExt.DOC
8. Acceptance of Grant of Easement from Ceres Court, LLC. Recommendation: Approve the
following resolution:
A RESOLUTION OF THE UTILITY BOARD/CIN COUNCIL OF THE CITY OF AZUSA ACCEPTING A
CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF.
&8.
Easement-Ceres.doc
9. Approval of Grant of Easement from Eurila Enterprises, Incorporated. Recommendation: Approve
the following resolution:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA ACCEPTING A
CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDING THEREOF.
B-9.
Easement-Eurila.doc
10. Award of Contract for Prolect W-239, Gladstone Yard Improvements. Recommendation: Approve
the award of contract for the construction of Gladstone Yard Improvement Project to MG Enterprizes
and amend capital improvement project budget in amount of $74,000.
E
&10.Gladstone Yd
Inprvmts.doc
g
003 .
r
I 1 . Additional Reimbursable Compensation for Ciyiltec Enidneering. Incorporated. Recommendation:
Approve the addition of reimbursable compensation for Civiltec Engineering, Incorporated in amount
of $90,000 pursuant to Azusa Municipal Code section 2-517(h) for continuing inspection of the
Rosedale Development water storage reservoirs and water pump stations.
B-11. Civiltec
Contract Amdrmt.da
12. Approval of Resolution for the City's Submittal of Funding Request for Recycling of Beverage
Containers with the Department of Conservation. Recommendation: Approve the following
resolution:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING
SUBMITTAL OF FUNDING REQUEST FORM TO THE DEPARTMENT OF CONSERVATION'S DIVISION
OF RECYCLING.
B-12.
BeverageRecycling.d,
13. Reimbursement Agreement between the City and IAR-University Commons, LLP.
Recommendation:Approve attached reimbursement agreement between the City and JAR-University
Commons, LLP in its substantial form and authorize the City Manager to execute final agreement.
&13.)AR Univ
Agrrt.doc
ADJOURN FROM UTILITY BOARD MEETING AND CONVENE MEETING OF AZUSA VALLEY WATER
COMPANY
I . Election of Officers of Azusa Valley Water Company. Recommendation: Approve the following
resolution:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE AZUSA VALLEY WATER COMPANY TO
APPOINT OFFICERS PURSUANT TO ITS AMENDED AND RESTATED BYLAWS ADOPTED ON DECEMBER
5, 2005.
AVNC-1. Election of
Officers.doc
ADJOURN FROM AZUSA VALLEY WATER COMPANY AND CONVENE MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
4
004
3
Y
C. SCHEDULED ITEMS
I. Adoption of Legislative Positions. Recommendation: Adopt the legislative positions attached to
this report and authorize the Mayor to sign letters addressed to legislators as may be required during
the remainder of legislative session to advocate the adopted positions.
C-1. Legisletrve.doc
D. STAFF REPORTS/COMMUNICATIONS
I.J Monthly Update on Water Treatment Plant Project
D-1. Moy WTP
Update.pdf
2. J Replacement Water Cost Adjustment Factor
D-2.
/ Water-RWCAF.doc
3. I Water Drought Information Update
�i
D-3. Drought -
/ Info.doc
4.J Monthly Power Resources Update
0
D-4.1. D-4.0.
MoyP ResRpt.ppt SaNuanPhotos.pdf
5. North American Electricity Reliability Council (NERC) Mandatory Reliability Requirements
D-s. NERC
Corryfiance.doc
5 005
6. Quarterly Fuel Cost Adjustment for San Juan Resource
D-6. San Juan
FCA.DOC
E. DIRECTOR'S COMMENTS
F. ADIOURNMENT
1. Adjournment.
%n compliance with the Americans with Disabilities Act, if you need special assistance to participate In
a city meeting,please contact the City Clerk at 626-812-5229. Notification three (3) working days prior
to the meeting or time when special services are needed"I assist staff In assuring that reasonable
arrangements can be made to provide access to the meeting"
6
Date: June 25, 2007
To: Azusa Utility Board
From: Jorge V. Rosales, Azusa Resident
Subject: Professional Services Contracts Awarded to Wren & Associates and
Civiltec for the last 27 months without competition.
FEBRUARY 28, 2005
Budget Amendment for Contract with Wren &Associates. Recommendation:Approve
budget amendment for professional services with Wren &Associates to perform inspection
services on Project W-194, Cypress Waterline, in the amount-of-$32,000.
APRIL 26, 2006
Professional Services Agreement with Wren and Associates. Recommendation: Approve
Professional Services Agreement with Wren and Associates to perform inspection services on
Project W-196 on Fifth Street, Azusa Avenue, and Cerritos Avenue ($32,000)]
MAY 23, 2005
Additional Compensation to Wren &Associates. Recommendation:Approve additional
payment_of$6,500 to Wren &Associates for extra time spent on their contract to inspect W-194.
DECEMBER 19. 2005
Additional Compensation to Wren & Associates. Recommendation: Approve addaio_nal
'payment_of.$10,670 to Wren & Associates for extra time spent on their contract to
inspect Project W-196, Water Main Replacement Project.
Professional Services Contract with Wren &Associates. Recommendation: Approve
Professional Services contract with Wren &Associates in estimated amount of$30,000 for
inspection services on Rosedale Subdivision Project Waterline and Facility Installations.
JANUARY 23, 2006
Professional Services Contract with Wren and Associates. Recommendation: Approve
Professional Services Contract with Wren and Associates for inspection services of electric
conduit and facility installations for Rosedale Subdivision Project by Azusa Land Partners in
estimated amount of-$3Qt
JUNE 26. 2006
It is recommended that the Utility Board/City Council approve the reimbursable addition of,
Wren&Associates
& Civiltec Page 3 of 3 June 25, 2007
$70,000 to the Wren &Associates contract for continuing inspection of the Rosedale
development pipeline installation.
FEBRUARY 26, 2007
Additional Reimbursable Compensation to Wren and Associates for Water Inspections.
Recommendation: Approve reimbursable addition of$70,000 to Wren and Associates contract
for continuing inspection of Rosedale Development pipeline installation.
FEBRUARY 26. 2007
Additional Reimbursable Compensation to Wren and Associates for Electric Inspections.
Recommendation:Approve reimbursable'addition_of$70"Q to Wren and Associates contract
for continuing inspection of Rosedale Development electric conduit and facility installation.
TOTAL AMOUNTS TO WREN & ASSOCITES TO DATE
_ $3409000.00
MONDAY,JUNE 26. 2006
Professional Services Contract with Civiltec Engineering for Project W-237.
Recommendation: Approve a Professional Services contract with Civiltec in amount of
$32,000.for inspection services on Project W-237, Water Main Replacement-Group 1.
Professional Services Contract with Civiltec Engineering for Rosedale Inspection
Services. Recommendation: Approve a Professional Services contract with Civiltec in
amount of$185,000 for inspection services on Rosedale development water reservoirs and
pump
MONDAY. JULY 24. 2006
Inspection Services for Water Main Replacement Project W-237. Recommendation:
Authorize City Manager to execute Professional Services Agreement with Civiltec
Engineering in amount&(.$32,400.'
Inspection Services for Rosedale Water Reservoirs and Water Pump Stations.
Recommendation: Authorize City Manager to execute Professional Services
Agreement with Civiltec Engineering in amount of$180,00
Wren&Associates
& Civiltec Page 3 of 3 June 25, 2007
MONDAY APRIL 23 2007
Professional Services Agreement with Civiltec Engineering, incorporated.
Recommendation: Approve the award of Professional Services Agreement with Civiltec
Engineering Incorporated for inspection services on Project W-238,Water Main Replacementsi
inaroount`of$56,208?
Monday. June 26, 2007
Additional Reimbursable Compensation for Civiltec Engineering, Incorporated.
Recommendation: Approve the addition of reimbursable compensation for Civiltec
Engineering, Incorporated in_am_o�uM of.0 000 pursuant to Azusa Municipal Code section 2-
517(h)for continuing inspection of the Rosedale Development water storage reservoirs and
water pump stations.
TOTAL TO CIVILTEC IF THE ADDITION IS APPROVED
TONIGHT: $ 587,608.00
Wren& Associates
& Civiltec Page 3 of 3 June 25, 2007
A7_USA
IIGNL A WAIF
AT
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
THURSDAY, MAY 17, 2007 — 10:41 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and
time, in the Azusa Auditorium, located at 213 East Foothill Boulevard, Azusa, California.
Chairman Hanks called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES, CARRILO, MACIAS, HANKS
ABSENT: BOARD MEMBERS: ROCHA
ALSO PRESENT: Also Present
Utilities Director Hsu, City Manager Delach,Assistant City Manager Person, City Clerk Mendoza,
Deputy City Clerk Toscano.
Public Participation Pub Part
Mr. Art Morales addressed Board Members expressing his frustration with the Speed Pay system A. Morales
at the Light and Water Department; he provided a step by step detailed account of the system Comments
and he stated that something is wrong with the technology.
Mr. Jorge Rosales addressed item B-3, regarding Resolution to Amend Light &Water Rules and J. Rosales
Regulations to Permit Adding Miscellaneous Collection Fees to Unpaid Closed Accounts; he Comments
requested that Mr. Hsu notify the public of the penalty fee which will pay for the collection
agency. He also addressed item D-4 commending Mr. Tang, who provided a good analysis of
comparison rates.
Consent Cal
The CONSENT CALENDAR consisting of Items B-1 through B-9, was approved by motion of Approved
Board Member Gonzales, seconded by Board Member Carrillo and unanimously* carried with the
exception of items B-3 and B-5 which were considered under the Special Call portion of the
Agenda.
Min Appvd
1. The Minutes of the regular meeting of April 23, 2007, were approved as written.
0,07
1
Prof Svs Agmt
2. Approval was given to select Systems &Software in an amount not-to-exceed $12,800 for Systems &
the development of an unbilled revenue report, and authorization was given to the City Software
Manager to execute a Professional Services Agreement with the same vendor.
Spec Call
3. SPECIAL CALL ITEM.
07-C37
4. A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Participate
CALIFORNIA, APPROVING PARTICIPATION IN USED OIL AND HHW GRANTS Used Oil Grnt
ADMINISTERED BY THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD.
Spec Call
5. SPECIAL CALL ITEM.
Amend CIP
6. Approval was given to amend Capital Improvement Project budget for Kirkwall Substation Kirkwall .
perimeter improvements in the amount of $23,370 and to award contract to Freeway Substation
Electric-General Engineering&Electrical Contractor Corporation in the amount not-to-exceed
$73,370 to install improvements.
Congestion
7. The Congestion Revenue Rights (CRR) Entity Agreement between the City and California Revenue
Independent System Operator (CASIO) was approved and the Director of Utilities was Rights CASIO
delegated the authority to sign the Agreement.
Confirmation
8. Approval was given for a Standard Capacity Product Confirmation between Reliant Energy Agmt Reliant
and the City of Azusa and the Mayor was authorized to execute the Confirmation Agreement
upon finalizing terms and conditions of the Agreement with Reliant.
07-C39
9. A RESOLUTION OF THE UTILITY BOARD/CIN COUNCIL OF THE CITY OF AZUSA Grant of Esmt
APPROVING THAT CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDATION SCE
THEREOF. (Southern California Edison).
Spec Call
Special Call Items Items
Dir of Util
Director of Utilities Hsu addressed item B-3, stating that when utility account holders who close Comments
their account and are delinquent, they are charged penalties and a percentage is retained by the
collection agency, and the total amount of payment is not received by the Utility Company. The
new rule and regulation will add miscellaneous collection fees to unpaid closed accounts. He
responded to questions posed.
Board Member Macias offered a Resolution entitled:
07-C36
A RESOLUTION OF THE AZUSA UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA, Add Misc
AMENDING THE SCHEDULE OF CHARGES AND RULES AND REGULATIONS GOVERNING THE Collection
ELECTRIC AND WATER SERVICE SUPPLIED BY AZUSA LIGHT & WATER. (Add miscellaneous Fees
collection fees to unpaid closed accounts)
Moved by Board Member Macias, seconded by Board Member Gonzales to waive further reading
and adopt. Resolution passed and adopted by the following vote:
AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: ROCHA
05/17/07 PAGE TWO
008
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City Mgr
City Manager Delach responded to questions regarding the Grant of Easement for the Fire Hydrant Comments
Lines in the Bates Company Colony Development,stating that the time frame is very soon as the Dir of Util
financing was just approved by their lender, as he understands. Director of Utilities Hsu Comments
responded to question stating that the length of the easement is usually ten feet.
Board Member Macias offered a Resolution entitled:
07-C38
A RESOLUTION OF THE UTILITY BOARD/CIN COUNCIL OF THE CITY OF AZUSA ACCEPTING A Grnt Esmt
CERTAIN GRANT OF EASEMENT AND DIRECTING THE RECORDATION THEREOF. (Public Fire Fire Hydrant
Hydrant Lines in the Bates Company Colony Development) Bates Colony
Moved by Board Member Macias,seconded by Board Member Gonzales to waive further reading
and adopt. Resolution passed and adopted by the following vote:
AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: ROCHA
Scheduled Items Sched Items
Director of Utilities Hsu addressed item regarding Declaration of Phase 1 Water Shortage, stating Dir of Util
that due to the.dry winter, and less snow pack in the Sierra Mountains there is a need to conserve Comments
water; he noted that there is a lawsuit pending against the Department of Water Resources from a
Fishing Group stating that they did not obtain the proper permit to receive water from the Delta.
He stated that the local Four City District, of which Carol Montano is Azusa's Representative,just
ordered 2,500 cubic feet into the basin which will help the City of Azusa. He stated that the
Declaration would affect large water users such as APU, Citrus College,AUSD and Industrial large
users. The Ordinance would require mandates such as: do not use water to wash down
driveways, and using nozzles to control water usage; the City will provide to customers. Further,
the City and the Public Information Officer will send out notices to customers.
Discussion was held between Director of Utilities and Board Members regarding other water Discussion
municipalities, the water basin, fines/penalties under Phase I, the time period which runs through
the summer season, etc.
Moved by Board Member Carrillo,seconded by Board Member Macias and unanimously* carried Phase I
to approve declaration of Phase I Water Shortage within Azusa Light &Water's water service Water
territory. Shortage
Staff Reports/Communications Staff Rpts
Director of Utilities Hsu presented the Monthly Report for the Water Treatment Plant Project WTP update
stating that everything is going smoothly, it is 1 1% completed, there are no change orders and
everything Is on schedule.
The Monthly Power Resources Update, SB 107 Disclosure Report to Retail Customers item, Power Res
Electric Retail Rate Comparison among California Utilities and Legislative Update were presented SB 107
as informational items but were not discussed. Electric Retail
Rate
Comparison
8_Legislative
Overview
05/17/07 PAGE THREE
009
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Director of Utilities Hsu advised that the Utility Board Meeting of June 25t1 is being scheduled at June 25t1
Murray Elementary School; notices will be sent out regarding the change. UB mtg
Director of Utilities reported that there have been no written protests regarding the Water Rate Water Rate
Adjustment, as of this date. Adjust
Directors Comments Dir Cmts
None. None
Moved by Board Member Carrillo, seconded by Board Member Macias and unanimously* carried Adjourn
to adjourn.
TIME OF ADJOURNMENT: 11:08 P.M.
SECRETARY
NEXT RESOLUTION NO. 07-C40.
• Indicates Rocha absent.
05/17/07 PAGE FOUR
010
AZUSA
LIGHT • 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: JUNE 25, 2007
SUBJECT: APPROVAL OF AMENDMENT NO. 2 TO LICENSE AGREEMENT WITH NORTHROP
GRUMMAN FOR A TEMPORARY 12-INCH WATERLINE
RECOMMENDATION
It is recommended that the Utility Board/City Council approve of Amendment No. 2 To
Temporary License Agreement (Amendment) with Northrop Grumman (Northrop) for use of a
portion of the southeast corner of Northrop's south parking lot for a temporary 12-inch
waterline.
BACKGROUND
On February 28, 2006, a portion of the north wall of Cemex's gravel pit collapsed, taking with
it a small portion of Northrop's asphalt south parking lot. Also damaged was approximately
100 linear feet of Azusa Light &Water's (ALW) 12-inch waterline which parallels the south
edge of the parking lot.
The loss of this 12-inch line reduced water supply to the industrial area on Irwindale Avenue
to one 12-inch line. Without the flow capacity of the missing 12-inch line, the industrial area
faced low fire flows in the event of an emergency. Further, without the back up 12-inch
waterline, severe water service interruptions could have ensued if the remaining 12-inch line
would have suffered leaks and required repairs.
In order to address the water service reliability issues and public safety concerns, Northrop
and the City of Azusa entered into a Temporary License Agreement (Agreement) effective July
6, 2006, which resulted in the installation of a temporary, above ground 12-inch water line
that reconnected both ends of the broken water main.
The purpose of the Agreement was to provide time for City staff to negotiate with Northrop
and other parties involved, for a permanent easement for a new 12-inch waterline to replace
the temporary waterline, and to resolve issues regarding compensation for damages caused
by the collapsed wall.
R1
The original Agreement with Northrop for the above ground water line had an initial term of 6
months, and was amended in December 2006, to extend the term to July 1, 2007. Since July
is fast approaching and more time is needed to resolve issues amongst the parties,
Agreement Amendment No. 2 has been prepared to extend the term from July 1, 2007, to
December 28, 2007 at the cost of $10,000 per 30-day period.
Cemex has been making the $10,000 payments and has agreed in writing to continue to
make such payments throughout any extended terms under this Amendment. Cemex and
Northrop will continue negotiations on the potential sale of all or a portion of the Northrop
property that is at issue. Each of the $10,000 payments maybe applied toward any ultimate
purchase price or any real property transaction with Northrop.
FISCAL IMPACT
The Amendment between the City and Northrop, calls for the payment of $10,000 for each
30-day option period. As a result, the Amendment may cost up to $60,000 if the City
exercises all the available extensions in the agreement. However, as explained above, Cemex
has been paying and/or reimbursing the City for such payments and has agreed to continue
such payments during the term(s) of the Amendment.
Prepared by:
Chet Anderson, Assistant Director - Water Operations
Cary Kalscheuer, Assistant to the Director of Utilities
NorthropAnntWFin
al.doc
012
AMENDMENT No. 2 TO
TEMPORARY LICENSE AGREEMENT
Between
THE CITY OF AZUSA,
a California municipal corporation
and
NORTHROP GRUMMAN SYSTEMS CORPORATION,
a Delaware corporation
013
AMENDMENT No. 2 TO TEMPORARY LICENSE AGREEMENT
This Amendment No. 2 to Temporary License Agreement(this "Amendment No. 2") is
entered into as of June 25, 2007,by and between the City of Azusa, a California municipal
corporation (hereinafter referred to as "City") and Northrop Grumman Systems Corporation, a
Delaware corporation (hereinafter referred to as "NGSC").
RECITALS
A. The parties entered into a Temporary License Agreement (the"Agreement") effective
July 6, 2006. The outside termination date and expiration of all potential options to extend the
temporary license thereunder was January 2, 2007.,
B. The parties thereafter entered into an Amendment to Temporary License Agreement
effective December 22, 2006 ("Amendment No. 1"), which, among other things, provided for
optional additional extensions of the term of the Agreement. The outside termination date and
expiration of all potential options to extend the temporary license under Amendment No. 1 is
July 1, 2007, assuming all options to extend are duly exercised and no prior termination occurs
by virtue of any other provision of the Agreement, as amended.
C. NGSC and CEMEX, Inc. a Louisiana corporation, are engaged in negotiations for a
potential sale to CEMEX or its affiliates of a portion of the Northrop Grumman Property, as
defined in the Agreement. As of the effective date of this Amendment No. 2, NGSC is prepared
to consider crediting the $10,000 payments made to date to the purchase price in connection with
any such sale to CEMEX or affiliates, assuming the purchase price and other terms and
conditions of the transaction are otherwise acceptable to NGSC, and assuming the sale closes
prior to year-end calendar 2007.
D. The parties now desire to provide additional options for further extension of the term of
the Agreement as set forth hereinbelow.
NOW, THEREFORE, in consideration of the mutual covenants, promises, and conditions
set forth in this Amendment No. 2, and for other good, valuable, and adequate consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree to amend the
Agreement as follows:
In partial modification to the provisions of Sections 2 and 5 of the Agreement,
City shall have an additional six (6) options of thirty(30) days each ("Extension
Options") to further extend the term of the Temporary Pipeline License, beyond July 1,
2007, for thirty(30) consecutive days for each Extension Option subject to the following
terns and conditions. Each Extension Option may be exercised by City in the following
manner only. For the initial 30 day extension under this Amendment No. 2, City shall
014
deliver to NGSC Good Funds (as defined under California law) in the amount of TEN
THOUSAND DOLLARS ($10,000) with or prior to the execution and delivery of this
Amendment No. 2. In the event City elects to exercise its right to extend the term of the
Temporary Pipeline License for one(1) or more additional periods of thirty(30) days, it
shall deliver written notice (the "Option Notice") to NGSC together with Good Funds in
the amount of TEN THOUSAND DOLLARS ($10,000) for each thirty (30) day period
(the "Monthly Option Consideration") not later than fifteen (15) days prior to expiration
of the then pending extended term. For example, if City desires to extend the tern of the
Temporary Pipeline License for thirty(30) days, it shall timely deliver the sum of Ten
Thousand Dollars ($10,000.00) with the Option Notice. If it desires to extend the term of
the Temporary Pipeline License for sixty(60) days, it shall timely deliver to NGSC an
additional sum of Twenty Thousand Dollars ($20,000.00), and if for ninety (90) days, it
shall deliver Thirty Thousand Dollars ($30,000.00). If City extends the term of the
Temporary Pipeline License for thirty(30) days and thereafter desires to further extend
the term of the Temporary Pipeline License for an additional period of thirty(30) days (or
sixty(60) days) it may do so, subject to the same terms and conditions set forth above.
The Option Notice shall state City's irrevocable and unconditional election to extend the
Temporary Pipeline License for a period of not less than thirty(30) days. If City fails to
timely deliver the Option Notice and/or the Monthly Option Consideration in the manner
expressly herein provided, all Extension Options not previously exercised in a timely
manner shall automatically terminate, without notice, and be of no further force or effect.
If City does timely deliver the Option Notice and the Monthly Option Consideration, all
references in the Agreement to the term shall be considered to mean the term as extended,
and all references to the termination or to the end of the term shall be considered to mean
the termination or end of the term as extended. THE EXTENSION OPTIONS SHALL
AUTOMATICALLY TERMINATE UPON THE EARLIER OF A DEFAULT OR
BREACH OF THIS AGREEMENT BY CITY, A FAILURE OF CITY TO TIMELY
DELIVER ITS OPTION NOTICE AND THE MONTHLY OPTION CONSIDERATION
FOR ANY MONTH, EXPIRATION OF THE FINAL OPTION TERM PERMITTED
HEREUNDER (December 28, 2007), OR UPON 90 DAYS PRIOR WRITTEN NOTICE
FROM NGSC TO CITY. NGSC's right to terminate the Agreement, except by reason of
a breach or default, shall not be in effect during any extended term for which City has
properly exercised one or more of its Extension Options. Under no circumstances shall
City be entitled to a return of the Monthly Option Consideration.
Except as so provided, the Agreement and Amendment No. 1 and all of their
provisions remain in full force and effect.
015
IN WITNESS WHEREOF,this Amendment has been executed by the parties on the day and
year first above written.
CITY OF AZUSA NORTHROP GRUMMAN SYSTEMS
CORPORATION, a Delaware
corporation
By: By:
Joe Rocha, Mayor A.J. Paz,
Director, Corporate Real Estate
016
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FaVEM
a- NMI
AZUSA
i .1 . -Tit
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL .
FROM: JOSEPH F. HSU, DIRECTOR OF'UTILITIES�
DATE: JUNE 25, 2007
SUBJECT: APPROVAL OF CUSTOMER SERVICE REPRESENTATIVE UNIFORMS, UNIFORM
POLICY, TO AWARD CONTRACT TO CINTAS AND BUDGET AMENDMENT FOR
$14,000 FOR INITIAL UNIFORM PURCHASE
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve (1) uniform wardrobe
recommendations, (2) the attached Light &Water Customer Service Representative Uniform
Policy, 3) contract to be awarded to Cintas, and (4) a budget amendment for $14,000 for
initial uniform purchase.
BACKGROUND
In the recent Memorandum of Understanding between the City of Azusa and IBEW Local 18,
it was agreed that the City would provide uniforms for Light &Water Customer Service
Representatives (CSR's). A committee would be formed comprised of City management and
IBEW members. The purpose of the uniforms is for the CSR's to project themselves as
professionals at all times. This could be accomplished by wearing professionally fitted
garments with a uniform look.
Uniform committee members are: CSR's Rosa Scholes and Janette Monreal, Assistant
Director Customer Care &Solutions Karen Vanca, Director of Information Technology Ann
Graf, Human Resources Risk Management Analyst Shelley Ovrom and IBEW Local 18 Business
Representative Nancy Romero. The uniform committee researched companies that sell office
wear and found a very limited selection of vendors. The committee first investigated
purchase versus rental options. Clothing for rent was found to be for industrial wear. Once it
was determined that the purchase option was the best fit for office environment clothing, the
committee evaluated home laundered versus dry cleaning. Dry cleaning was found to be
expensive. In order to keep costs as low as possible, home laundering seemed to be the
logical solution and was agreed to by committee members.
Cintas was found to offer a wide selection of suitable garments, reasonably priced, good
quality fabric and home launderable. CSR's on the committee showed the Cintas catalog to
CSR staff members and got their style and color preferences.
017
The uniform committee took a conservative approach in cost and in selecting a moderate
variety of garments for the CSR wardrobe. The committee proposes that attire consist of a
black skirt, pants, and jacket with Light &Water's blue and yellow logo embroidered on it, and
a yellow and a blue blouse each in a different style. The blouses would be worn ori alternating
days. Everyone would look alike on any given day with the exception of the supervisor. She
would wear the opposite color blouse so she could be easily distinguishable for customers.
Similar clothing was selected for males and maternity fashions. Attached are color copies of
the recommended uniform garments.
The uniform committee requests that employees could select any combination of the
designated garments with a conservative number of garments to be paid for by the City at an
initial cost not to exceed $1,000.00 per employee. Annual allowance of $750.00 per CSR is
recommended for replacement garments starting in fiscal year 2008-09. Additional garments
could be purchased by employees by reimbursing the City.
Cintas provided a cost proposal and would waive the $150.00 logo set-up charge if we can
provide camera-ready art work, which we can.
Our proposed timeline includes:
Mid-June management review and approval
June 25 Utility Board meeting— approval of dress policy, CSR wardrobe
with Cintas, and budget amendment approved
June 28 Uniform order placed with Cintas
June 27 —July 5 Purchase Order prepared
July 9 - 18 CSR fittings
July 19 — September 13 Complete uniform alterations, logo
September 17 CSR's begin wearing uniforms
FISCAL IMPACT
A budget amendment is requested for fiscal year 2007-08 for $14,000 to account number
31-40-711-903-6201. An annual uniform allowance of $750.00 per CSR would be budgeted
starting with fiscal year 2008-09.
Attachments
Customer Service Representative Dress Policy
Uniform items and cost per employee
Photographs of proposed uniform garments
NA Falk
Uniform Policy CSR UMform pricing
6-07.DOC 6-07.xis
Prepared by: Karen Vanca, Assistant Director Customer Care &Solutions
018
41
CITY OF AZUSA
LIGHT AND WATER — CUSTOMER SERVICE
UNIFORM POLICY
I. PURPOSE
In the recent Memorandum of Understanding between the City of Azusa and IBEW
Local 18, it was agreed that the City would provide uniforms for Light & Water
Customer Service Representatives (CSR's). Light and Water Customer Service
seeks to provide the highest quality of professional services to our citizens, business
clients and customers. Therefore, it is important that Customer Service employees
project themselves as professionals at all times. An element of professionalism is
proper dress attire. Appropriate, professional business attire is important in
maintaining a positive image to the customers we serve. First impressions last and
because of this we have established a Uniform policy that includes traditional
professional business attire.
II. APPLICABILITY
This Policy applies to Light and Water Customer Service employees: Customer
Service Representatives (I, II, III and part-time), Cashiers (including part-time),
Customer Care Supervisor, Customer Care Lead, Customer Service Supervisor and
any additional positions covered under the applicable MOU.
Reasonable accommodation will be made for religious practices, disabilities and/or
medical reasons.
III. POLICY
Employees are expected to demonstrate a demeanor and appearance that is
professional, businesslike, neat, and clean.
Uniform Company and Professional Fitting
The Uniform Company selected to provide apparel is Cintas. All employees will be
professionally fitted to determine appropriate uniform size. The size determined by
the professional fitting company will be the only size ordered. If an employee
experiences a weight gain or weight loss that results in the need for new garments, a
professional fitting to determine the appropriate size will be required. The City will
pay for the fitting and the employee may purchase replacement garments from their
remaining uniform allowance or will be personally responsible for the cost of the new
garments. Alterations needed above and beyond the standard hemming completed
by Cintas are the responsibility of the employee and are required to remain within
the guidelines outlined in this policy.
Page 1 of 4 Updated:6/182007
. a�9
Uniform Allowance
Employees will be allotted an annual amount of money for uniforms, based on a
fiscal year July 1 to June 30. This amount will not be distributed to employees, but
maintained in a 'uniform allowance account.' The initial amount provided to
employees ($1,000.00), will be greater than the following subsequent years
($750.00) in order to allow for the establishment of a complete uniform wardrobe.
Any unused allowances will not be carried over to the following year and cannot be
shared with other CSR's.
If a garment is stained, torn, or for similar reasons is un-wearable and needs to be
replaced, it is covered by the uniform allowance up to the amount of funds available
for that year. Otherwise, replacement is at the employee's expense. In the case of
price increases by Cintas, the subsequent annual amount will be re-evaluated.
Shoes and hosiery are not included in the uniform allowance amount and will be the
responsibility of each employee.
Uniform Apparel
Appropriate and approved garments are as follows. The City reserves the right to
evaluate/determine appropriateness and to modify these requirements as needed.
Women
Pants (Black)
• Plain Front Slacks— Item #111814-90
Skirts (Black)
Three Panel Skirt— Item #111816-90
*Skirts should be no more than 2 inches above the bottom of the knee
Blouses (Butter and Cobalt Blue)
• Bridgette Blouse (butter) — Item #110963-51
• Bacal Blouse (cobalt blue) — Item #102191-22
Jackets (Black) — Light and Water Logo Embroidered
• Cardigan Jacket— Item #111813-90
* The cost of embroidery is deducted from the employees' uniform allowance.
Maternity Wear
Dress (Black)
• Maternity dress— Item #111753-90
Slacks (Black)
• Maternity slacks — Item #101949-90
Blouse (White)
• Maternity blouse — Item #042950-92
*These garments can be purchased with available allowance funds and/or with
an employee's own money.
Men
Blazer (Black)
• Arlington classic blazer— Item #111234-90
Page 2 of 4 Updated:6/18/2007 f]
020
Dress Pants (Black)
Pleated dress pants — Item #100095-90
• Flat front dress pants — Item #112617-35
Dress Shirt (Cobalt blue)
• Tailored dress shirt— Item #104330-22
Tie Gold
• Gold pattern tie— Item #111613-51
Accessories
• All accessories should be selected and worn to provide an overall
professional business appearance, with an effort being made to blend
accessories with uniform colors. Inappropriate or distracting accessories are
not permitted, such as scarves and jacket pins.
Shoes
• Shoes shall be plain black. Open toed shoes are acceptable, however, slip-
on/mule style shoes are not acceptable.
• Hosiery or socks are to be worn in the colors of either black or nude.
• Sandals and beach footwear, such as thongs or flip flops, tennis shoes, hiking
boots and/or any shoes in dis-repair are not permitted.
Hair
Hair should.be clean, combed, and neatly trimmed or arranged; in the case of
male employees, this also pertains to sideburns, moustaches and beards.
Shaggy, unkempt hair is not acceptable.
Care/Maintenance of Uniforms
• Employees are responsible for the cleaning, maintenance and proper care of
their uniforms. All uniform garments can be home laundered or employees
can choose to have them professionally dry cleaned. Laundering or dry
cleaning expenses are the responsibility of each employee and are not
included in the uniform allowance.
• All employees shall remember that when in uniform, the public perceives you
as "on duty" and representing the City. Your appearance and conduct reflect
upon the City at all times.
Uniforms are to be worn only during work hours and are not for use/wear for
non-city business.
• Upon the end of employment with the City, all uniform attire will be returned to
the City.
The understanding of this Policy is important; If an employee's attire is considered to be
inappropriate, and after a first warning, an employee will be subject to being sent home to
change and return in proper attire. Any employee not wearing approved uniform of the day
will be sent home to change. Employees who are sent home must utilize their own accrued
time.
Page 3 of 4 Updated:6/18/2007 (�
021
If you have any questions about these guidelines please contact your Supervisor or Human
Resources.
Page 4 of 4 Updated:&I MOW 022
r '
Initial Uniform Cost (sample selection)
For Proposed Customer Service Representative Uniforms - Female
Sizes Up To 20 Sizes 22 +
Quantity Item Description Price Each Total Price Price Each Total Price
3 cardigan jackets $ 85.00 $ 255.00 $ 89.00 $ 267.00
3 embroidery 4.00 $ 12.00 4.00 12.00
3 3-panel classic skirt 44.00 132.00 49.00 147.00
3 Plain-front slacks 50.00 150.00 55.00 165.00
4 Butter Bacall blouse 37.00 148.00 42.00 168.00
4 Blue Bridgette blouse 39.00 156.00 44.00 - 176.00
Total for garments $ 853.00 $ 935.00
TAX 0.0825 70_37 77.14
Subtotal $ 923.37 $ 1,012.14
SHIPPING 0.04 36_93 40.49
TOTAL $ 960.31 $ 1,052.62
6/4/2007
K.Vanca
023
Vr..
AL UwSA
�
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE$��/
DATE: JUNE 25, 2007 ���
SUBJECT: REQUEST TO EXTEND AND MODIFY THE DRiP REBATE PROGRAM
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council:
1. Extend the modified DRIP Rebate Program until such time that the program is deemed
unneeded, due to sufficient water supplies.
2. Approve a funding level of $100,000 per fiscal year from the water fund, account 32-
40-721-6625, until the program is either modified or terminated.
BACKGROUND
On January 29, 2003, the Utility Board authorized staff to develop a drought resistant
landscape pilot program to help conserve water usage. A $150,000 program was approved
to run through March 31, 2004. The program was subsequently extended and the funding
was reduced to the current annual level of $100,000.
Under the guidelines of the program, all Azusa Light &Water customers are eligible for rebate
funds. Residents are eligible to receive a rebate of up to 50% of the cost of landscape
materials and irrigation systems, but not more than $1,400, with schools and businesses
having an upper eligibility limit of $15,000. Customers may only apply one time during the 12
month pilot period of this program.
Based on projected water saving measures provided by Rainbird, Inc., a typical timed
irrigation system can save between 25% and 45%, or more. According to WaterWise, drought
tolerant landscapes save in the neighborhood of 67% over normal shrubberies.
From Inception to date, forty-seven residents and nine commercial customers have
participated in the DRIP program. The corresponding funding for these participants was
$140,938. The majority of the forty-seven residential customers that participated in the
024
program were located in the Mountain Cove sub-division, where they were required to install
landscaping when they purchased the new homes. The DRIP ebate program has been
modified to require new residents who need to install landscaping to only be eligible for
rebates, if they install "Smart" weather base controllers. Staff intends to periodically re-
evaluate the participation levels and modify the funding levels to further encourage
participation in the program.
The program has also been modified to incorporate premium artificial turf as an option over
living turf, which tends to use massive amounts of water to keep it green and healthy. In
many cases, two-thirds or more of the water used.for landscape is used on turf areas. By
eliminating the requirement to water turf areas of the landscape and incorporating drought
resistant shrubs in the overall plant selection, tremendous water savings are available.
Continued funding at the current level of $100,000 should provide substantial funds to meet
the expectations of the residential, commercial and industrial market segments under the
guidelines of the modified DRIP Rebate program.
FISCAL IMPACT
The funding of the program is projected to be a maximum of $100,000 and will be provided
from the water fund, account 32-40-721-6625. The subsequent extensions of the program
will require an additional funding amount of $100,000 per fiscal year for the duration of the
program from.the same water fund account.
Prepared by: Paul Reid — Business Development/Public Benefit Programs Coordinator
025
Y
AZUSA
i rnr ♦ ween
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE$�<
DATE: JUNE 25, 2007 �V
SUBJECT: PURCHASE OF PILOT eMAC HEATING, VENTILATION AND AIR
CONDITIONING (HVAC) CONTROL SYSTEM FROM MAXIMUM PERFORMANCE
GROUP, A LIME ENERGY COMPANY
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council:
1. Waive formal bidding procedures to award the purchase and installation of a pilot
wireless internet-based Heating, Ventilating, and Air Conditioning (HVAC) monitoring
and control system to Maximum Performance Group, a Lime Energy Company, at a
cost of $108,000 to be paid from Public Benefit funds.
2. Approve 2007-08 Capital Improvement Project (CIP) budget in amount of $108,000
from Fund 24 for this project.
BACKGROUND
Over the last couple of years Azusa Light and Water has been under legislative pressure to
Improve energy efficiency and be prepared to respond to load management events during
California Independent System Operator (ISO) system emergencies. A new technology, the
eMac system, provides the ability to shed load on a moments notice while providing ongoing
cost effective energy savings.
The eMac system is a web-based, cellular technology energy management, monitoring and
control system for the larger (7.5 to 15 Ton) packaged HVAC systems. The control system
comes with an added feature; a 24/7 manned monitoring system. In the event an alarm is
triggered that the equipment Is operating outside of set operating parameters, a maintenance
team can be dispatched before system failure and prior to complaints from employees of
026
discomfort due to temperature fluctuations in the affected work area. Several of these large
HVAC systems are located in City buildings and would be likely candidates for this technology
and qualify as cost-effective under recent energy efficiency legislation.
The pilot program will consist of wireless web-enabled eMac controllers, along with the HVAC
monitoring service for one year, to be installed on 27 HVAC units in 3 government locations,
specifically.the Memorial Park Facilities including the new A/C units to be installed on the
gymnasium, the Auditorium/Credit Union and the Police Department. If the city decides to
continue with the technology, the annual monitoring cost will be approximately $300.00 per
unit to be paid by Public Benefit funds.
Based on preliminary estimates, the overall percent attainable savings is approximately 22%
With a simple payback in about 4.5 years which equates to an annual savings of over 258,000
KW-Hr or an estimated avoided cost of $0.028 per KW-Hr using a conservative 15 year life
cycle. This rate of return is based on energy savings alone and does not include the potential
Demand Response savings or the possible reduced maintenance expenses. The demand cost
effectiveness comparison between this technology, at $200 to $400 per KW, versus the
estimated cost of $750 per KW to build a new peaking power plant makes this technology
very cost effective for Demand Response during an ISO event.
This is the minimum acceptable scope of this project, anything smaller would not provide the
critical mass for acquiring the data required to determine if this is a cost effective means of
Demand Response. In the event of a CAL-ISO system emergency, we are required to drop a
certain measurable amount of load off the system, therefore we need at least 25 HVAC units
to meet that need. In addition, the first price break point, from the vendor, is also 25 units.
This is new technology and at this time Lime Energy is the only provider of this scale of
cellular web-based monitoring and control systems, therefore we propose to waive the formal
bidding process.
FISCAL IMPACT
The cost of the pilot program will be $108,000 and a Capital Improvement Project (CIP)
budget is proposed using Fund 24 for FY 2007-2008. If the equipment meets the energy
efficiency savings requirements and is continued, ongoing funding in the amount of $8,000
per year may be required through the annual operating budget.
Prepared by: Paul Reid — Business Development/Public Benefit Programs Coordinator
027
AZUSA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 25, 2007 ` ,,V
SUBJECT: STANDARD CAPACITY PRODUCT CONFIRMATION AGREEMENTS WITH
DYNEGY AND SHELL TRADING
RECOMMENDATION
It is recommended that the Utility Board/City Council authorize the procurement of standard
capacity products from Dynegy for calendar year 2008 and Shell Trading for calendar year
2009 in partial fulfillment of City's resource adequacy obligations to the California
Independent System Operator (CAISO) and authorize the Mayor to execute the Confirmation
Agreements (Agreements) with Dynegy and Shell Trading upon finalizing the terms and
conditions of the Agreements.
BACKGROUND
The Utility Board established a Resource Adequacy (RA) program for the City in April 2006 to
ensure adequate power resources to serve our customers and in partial fulfillment to
California Independent System Operator's (CAISO) tariff requirements.
The City's RA program among other requirements dictates that the City procure sufficient
electric power capacity plus 15% for reserve margin ahead of time to ensure adequate supply
of electricity. The CAISO's tariff requirement dictates where such electric power capacity
should be located to ensure that electric power can be delivered to serve customer
consumption without encountering transmission bottleneck problems.
Prior this year (in February and May), the Utility Board approved RA capacity procurement
from Reliant to partially fulfill City's RA requirement for calendar years 2008 and 2009. Staff
noted at the time that we would continue to evaluate proposals from other suppliers either
through the remaining offers received from the Southern California Public Power Authority
(SCPPA) RFP process or through our own RFP process for additional procurement to further
fulfill our RA requirement.
SCPPA's RFP process did not produce additional viable procurement opportunities. Thus staff
issued an RFP in late May for RA capacity (RFP is attached herein). We received 5 responses
with competitive offers for.RA capacity that can further fulfill a portion of our RA requirement.
Dynegy's offer was the most competitive for calendar year 2008 and Shell Trading's offer was
0,29
the most competitive for calendar year 2009. Given the City's RA program requirement as
well as CAISO's tariff requirement, the timely procurement of RA capacity is imperative to
ensure the reliability of the overall system, and thus should be pursued at this time.
It should be noted that with these latest purchases, the City is close to 90% fulfillment of its
RA requirement for 2008 and 2009. Some minor adjustments might still be required at the
opportune time to fully satisfy the RA requirement.
FISCAL IMPACT
The combined purchases of the standard capacity product from Dynegy and Shell Trading will
cost about $87,000 in fiscal year 2007-08; $231 ,000 in fiscal year 2008-09; and $144,000 in
fiscal year 2009-10. Funds will be budgeted in the respective FY to pay for the purchase.
Prepared by: Bob Tang, Assistant Director of Resource Management
A111-
Shell Trading RA Azusa System RA Dynegy RA
Confimation RFP—revised Confirmation
029
Shell Trading
Pro forma Confirmation Agreement
Coral Power,
L.L.C.
909 Fannin,Plaza Level 1
Houston,TX 77010
713.767.5400
Jtirie'.xx;,201)7.
Mr. Bob Tang Deal No;•-".:''v;
City of Azusa
Facsimile: 626.334.3163
Phone: 626.812.5214
CONFIRMATION AGREEMENT
(Standard Capacity Product Confirmation)
This Confirmation Agreement("Confirmation") is entered into as of June 4 ?007,("Effective Date")and
shall provide the terms and conditions representing the negotiated transaction ("Transaction") between
Coral Power, L.L.C. ("Coral") and City of Azusa ("Azusa"), either one a "Party" or together the
"Parties", in which the Seller agrees to sell to Buyer the product described below ("Capacity'). The
definitions and provisions contained in the tariffs and/or protocols of the California Independent System
Operator ("CAISO") as amended from time to time ("Tariff) shall apply to this Confirmation and are
incorporated by reference.
Master Western System Power Pool Agreement dated March 16, 2007 as amended from time to
Agreement: time (the "WSPP Agreement'). Capitalized terms used but not defined herein shall have
the meaning ascribed to such terms in the WSPP Agreement.
Buyer: Azusa
Seller: Coral
Product: A resource-adequacy product, also known as"Capacity",defined as the qualified and
deliverable capacity from the Specific Resource(s)identified below which, up to the
Contract Quantity,can be counted toward meeting Buyer's resource-adequacy
requirements as described in Decisions 04-10-035,05-10-042,06-06-064 and 06-07-031
of the California Public Utilities Commission("CPUC")in effect as of the Effective Date
of this Confirmation. This Confirmafion does not confer to Buyer any right to delivery of
the Contract Quantity of energy associated with the Capacity except that Buyer may
include such Contract Quantity in Buyer's resource-adequacy demonstrations as Capacity
during the Delivery Period. Specifically,unless otherwise agreed as between the Parties
in writing,Buyer shall have no rights under this Confirmation to purchase energy and/or
ancillary services in the Contract Quantity from the Specific Resource.
CONFIDENTIAL
This proposal Is for discussion purposes only and is not Intended to be complete and all-inclusive of the tens and
conditions of the related transaction.This proposal is not an offer,a solicitation of an offer or a commitment of Shell or
and parent affiliate of Shell.The proposed transaction described herein is subject to further review and approval of
Shell and execution of definitive agreements containing all appropriate provisions including those related to credit and
limitations of damages.This proposal does not purport to identify or suggest any or all of the risks(direct or indirect),
which may be associated with this proposed transaction.As for the information contained herein is proprietary,please
keep this material confidential.
030
Specific 1Jmf24t the Ia Rosita Power Generation Facility located near Calexico,CA;provided,
Resource: however,that if capacity from such unit(s)will not be counted toward meeting resource
adequacy requirements in a given month during the Delivery Period due to a scheduled
outage,Seller shall designate a substitute resource that is capable of providing such
capacity no later than ten(10)Business Days before Buyer's month-ahead showing for
such month is due to the CPUC.
Delivery 7anua ry,l 2009 ;tluough and_includmg-`Decbmber;31 2009
Period:
Contract $ .7M.NN per kW-Month
Price:
Existing SP15
CAISO Zone
Contract 1SMYT
Quantity:
CONFIDENTIAL
This proposal is for discussion purposes only and is not intended to be complete and all-inclusive of the terms and
conditions of the related transaction.This proposal is not an offer,a solicitation of an offer or a commitment of Shell or
and parent affiliate of Shell.The proposed transaction described herein is subject to further review and approval of
Shell and execution of definitive agreements containing all appropriate provisions including those related to credit and
limitations of damages.This proposal does not purport to identify or suggest any or all of the risks(direct or indirect),
which may be associated with this proposed transaction.As for the information contained herein is proprietary,please
keep this material confidential.
031
Seller's Seller makes the following additional covenants, warranties and representations:
Additional a. Seller is duly licensed and certificated by all applicable jurisdictional regulatory
Covenants & agencies and bodies, and as such holds the necessary authorities, to participate in the
Warranties: CAISO markets.
b. Seller meets the credit requirements necessary to participate in the CAISO market.
c. The Contract Quantity is owned or controlled by Seller for each Specific Resource
specified above.
d. The Specific Resource has been registered with and/or certified by the CAISO as
qualifying capacity to the Delivery Location(s); provided, that if the Specific
Resource(s) is(are) are not so registered and/or certified, Seller will take all
reasonable steps to assure that the Specific Resource(s) is(are) registered and/or
certified prior to the commencement of the Delivery Period in the amount no less
than the Contract Quantity of Capacity sold under this Confirmation.
e. The amount of the Capacity sold under this Confirmation is unencumbered by any
other sale,any assignment,or any rights conferred to any party other than the Buyer.
f. Unless the Specific Resource is out of service due to a forced outage as defined in the
definition of Unit Firm in the Confirmation, or is out for planned maintenance as
approved by the CAISO,or conditions constituting force majeure arise,Seller will:
i. Make the Contract Quantity available, to the extent required by the
CAISO to the CAISO consistent with the terms of the CAISO tariff
for every hour of the Delivery Period, by self-scheduling or by
bidding the Contract Quantity of the Specific Resource into the
CAISO's day-ahead energy and ancillary services markets for
every hour of the Delivery Period; provided, that prior to the
implementation of the CAISO's Market Redesign and Technology
Update proposal, if the CAISO denies Seller's request for a waiver
of any commitment of the unit for the next operating day, Seller
shall commit the Specific Resource for each hour of the next
operating day and self-schedule or submit bids in an amount no less
than the Contract Quantity into the CAISO's markets as required by
the CAISO during that next operating day;and,
ii. Dispatch the Specific Resource in an amount not less than the
Contract Quantity of megawatts in the CAISO's market for energy
and / or ancillary services pursuant to any schedules and
instructions of the CAISO issued in accordance with the terms of
the CAISO tariff.
iii. Comply with the Must Offer Obligations as specified in the CAISO
tariff as amended from time to time during the term of this
Confirmation.
g. Seller shall not commit any portion of the Contract Quantity, including but not
limited to the sale or scheduling of firm energy to any party outside the CAISO control
area, until all obligations to Buyer and/or CAISO under the contract and/or the CAISO
tariff have been met or are extinguished.
Seller will maintain or cause to have maintained the Specific Resource using "Good
Utility Practice"as defined in the CAISO tariff.
CONFIDENTIAL
This proposal is for discussion purposes only and is not intended to be complete and all-inclusive of the terms and
conditions of the related transaction.This proposal is not an offer,a solicitation of an offer or a commitment of Shell or
and parent affiliate of Shell.The proposed transaction described herein is subject to further review and approval of
Shell and execution of definitive agreements containing all appropriate provisions including those related to credit and
limitations of damages.This proposal does not purport to identify or suggest any or all of the risks(direct or indirect),
which may be associated with this proposed transaction.As for the information contained herein is proprietary,please
keep this material confidential.
032
Buyer's Buyer makes the following additional covenants, warranties and representations: (a)
Additional Buyer holds the necessary authorities to participate in the CAISO markets; and (b) Buyer
Covenants & meets the credit requirements necessary to participate in the CAISO markets.
Warranties
Meeting Seller will make all commercially reasonable efforts to ensure the Product meets the
Resource- resource-adequacy requirements of the CAISO; provided, that such commercially
Adequacy reasonable actions shall not include any obligation that the Seller, or Seller's supplier,
Requirements: undertake capital improvements, facility enhancements, or the construction of new
facilities unless otherwise agreed in writing.
Mutual Where necessary to modify this Confirmation to conform its terms and conditions to
Cooperation changes in circumstances or regulations affecting the benefits of the bargain struck by the
to Preserve Parties,the Parties agree to negotiate in good faith to modify this Confirmation so as to
the Benefits of address such circumstances or regulations while preserving the benefits of the bargain
the Bargain struck b the Parties.
Indemnity Seller agrees to indemnify Buyer for any monetary penalties assessed by the CAISO
against against the Buyer for Buyer's failure to meet the requirements of the CAISO related to the
Penalties: Buyer's obligation to submit an approved resource-adequacy demonstration to the extent
any such penalties were the direct result of Seller not fulfilling any of its obligations under
this Confirmation; provided, where Buyer is in breach of this Confirmation, Seller's
obligations to perform under this Confirmation and/or to indemnify the Buyer for any
monetary penalties are waived.
Notices: All written notices under this Confirmation shall be deemed properly sent if delivered in
person or sent by fax, or by registered or certified mail, postage prepaid to the persons
specified below:
For notices other than Confirmations:
To Azusa: City of Azusa To Coral: Coral Power,L.L.C.
729 North Azusa Avenue 4445 EastGate Mall,Ste. 100
P.O.Box 9500 San Diego,California 92121
Azusa,CA 91702-9500 Atm: Joseph Valatka, Senior Commercial
Advisor
Attn:Bob Tang Phone: 858-526-2151;Fax: 858-320-1570
Phone: 626.812.5214• Fax 626.334.3163
For Confirmations: To:Phone: 626.12.5214 To Coral: Phone: 858-320-1500
Payments: All payments shall be made by electronic wire transfer as follows:
To Azusa: Wells Fargo Bank To Coral: Citibank
ABA No. 121000248 ABA No. 021000089
Account No. 4950041244 Account No. 30603873
Attn: Atm:
Choice of THIS CONFIRMATION SHALL BE GOVERNED BY AND CONSTRUED IN
Law: ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT
GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS.
Assignment: Coral shall have the right to assign this Confirmation to an affiliate of equal or greater
creditworthiness.
Mobile-Sierra Absent the agreement of all Parties to the proposed change, the standard of review for
Provision: changes to any portion of this Confirmation or any transaction entered into hereunder
proposed by a Party, a non-party or the Federal Energy Regulatory Commission acting
sua sponte shall be the "public interest" standard of review set forth in United Gas
Pipeline Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal Power
Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956)("Mobile-Sierra"doctrine).
CONFIDENTIAL
This proposal is for discussion purposes only and is not intended to be complete and all-inclusive of the terms and
conditions of the related transaction.This proposal is not an offer,a solicitation of an offer or a commitment of Shell or
and parent affiliate of Shell.The proposed transaction described herein is subject to further review and approval of
Shell and execution of definitive agreements containing all appropriate provisions including those related to credit and
limitations of damages.This proposal does not purport to Identify or suggest any or all of the risks(direct or indirect),
which may be associated with this proposed transaction.As for the information contained herein is proprietary,please
keep this material confidential.
033
No Challenge; Neither Party will exercise any of its respective rights under Section 205 or Section 206 of
Defense of the Federal Power Acts to challenge or seek to modify any of the rates or other terms and
Agreement: I conditions of this Confirmation or any transactions entered into hereunder.
A fax copy of either Party's signature will be considered an original for all purposes under this
Confirmation, and each Party will provide its original signature upon request. Except to the extent
otherwise explicitly provided in this Confirmation, no amendment to this Confirmation will be valid or
given any effect unless signed by both Parties.
This Confirmation and the terms of the WSPP Agreement that are not inconsistent with this Confirmation,
set forth the terms of the transaction which the Parties have entered into and shall constitute the entire
agreement between the Parties relating to the contemplated purchase and sale of the Product.
Notwithstanding any contrary provision in the WSPP Agreement, any conflict between this Confirmation
and the WSPP Agreement shall be resolved in favor of this Confirmation. This Confirmation supersedes
all prior agreements and understandings (whether written or oral) regarding the subject'matter of this
Confirmation, and may not be contradicted by any prior or contemporaneous oral or written agreement
unless explicitly authorized herein.
Notwithstanding anything contained in the WSPP Agreement to the contrary, this Confirmation shall only
be effective when executed by both Parties.
IN WITNESS WHEREOF, the Parties have signed this Confirmation to be effective as of the Effective
Date.
City of Azusa Coral Power,L.L.C.
By: By:
Name: Name:
Title: Title:
Date: Date:
CONFIDENTIAL
This proposal is for discussion purposes only and is not intended to be complete and all-inclusive of the terms and
conditions of the related transaction.This proposal is not an offer,a solicitation of an offer or a commitment of Shell or
and parent affiliate of Shell.The proposed transaction described herein is subject to further review and approval of
Shell and execution of definitive agreements containing all appropriate provisions including those related to credit and
limitations of damages.This proposal does not purport to identify or suggest any or all of the risks(direct or indirect),
which may be associated with this proposed transaction.As for the information contained herein is proprietary,please
keep this material confidential.
034
THE CITY OF AZUSA, CALIFORNIA
Request for Proposals (RFP)
for
System Resource Adequacy Resources
(REVISED on MAY 23, 2007)
The City of Azusa(Azusa) is hereby soliciting competitive proposals for System
Resource Adequacy(System RA) resources in the California Independent System
Operator(CAISO)markets.
A. Introduction
1. Azusa seeks competitive proposals from sellers whereby a Seller would sell, and
Azusa would purchase System RA products described in Section C of this
transmittal letter.
2. Azusa reserves the right, without qualification and in its sole discretion, to accept
or reject any or all proposals for any reason without explanation to the respondent,
or to make the award to that respondent, who, in the opinion of Azusa, will
provide the most value to Azusa. Azusa will consider both price and non-price
factors in evaluating proposals received.
B. Description of Product Solicited
Minimum Requirement
I. The product must be countable toward CAISO system Resource Adequacy as
defined in the applicable CAISO's FERC approved tariff. The product must
include the RA attributes for system Resource Adequacy as defined in the
applicable CAISO's FERC approved tariff, but does not necessarily need to
include energy, and ancillary services attributes. Capacity and the associated
energy(to the extent energy is offered) of the offered resources must be identified
to specific existing or newly constructed generating resources located in CAISO's
control grid and are deemed to be deliverable to serve loads within CAISO
control grid pursuant to the most current CAISO deliverability studies.
C. Request for Offers
10 MW of RA capacity year-round for calendar year 2008 and 15 MW of RA
capacity year-round for calendar year 2009 with system capacity attributes that can be
035
counted as system RA resources. RA capacity must be separately priced in $/MW-
month for each month of the term.
The Seller might include other features to the offering, e.g., must-take energy,
dispatchable energy, ancillary services etc. Each of the features must be separately
priced and selected at Azusa's discretion if offered.
To expedite Azusa review process, the Seller is highly encouraged to submit a pro
forma Confirmation Agreement under the Western System Power Pool (WSPP)
Agreement.
D. Term
1. For System RA capacity purchase agreements,the term is expected to commence
January 1, 2008 and run through December 31, 2009. Seller may specify quarterly
(e.g. Q3 2008), seasonal(e.g., summer from May through October), or annual
terms.
E. Proposal Selection Criteria
1. Azusa, at its sole discretion, shall evaluate responsive proposals and may select
proposals, if any, which provide the most value to Azusa.
2. Proposals may be combined with other proposals, at Azusa's sole discretion.
3. Azusa shall determine at its sole discretion the value of any and/or all proposals.
4. Azusa shall evaluate any proposals in terms of price and non-price attributes.
5. Azusa shall perform an initial screening evaluation to identify and eliminate any
proposals that are not responsive to the RFP, do not meet the minimum
requirements set forth in the RFP, are clearly not economically competitive with
other proposals, or are submitted by respondents that lack appropriate
creditworthiness, sufficient financial resources, or qualifications to provide
dependable and reliable services.
6. Azusa reserves the right to reject any, all, or portions of the proposals received for
failure to meet any criteria set forth in this RFP. Azusa also may decline to enter
into a power purchase arrangement with any respondent,terminate negotiations
with any respondent,or abandon the RFP process in its entirety.
7. Those respondents who submit proposals agree to do so without legal recourse
against Azusa, and its directors,officers, employees and agents for rejection of
their proposal(s) or for failure to execute a power purchase agreement for any
reason. Azusa shall not be liable to any respondent or party in law or equity for
036
any reason whatsoever for any acts or omissions arising out of or in connection
with this RFP.
8. Respondent shall be liable for all its costs, and Azusa shall not be responsible for
any respondent's costs incurred to prepare, submit, or negotiate its proposal, a
contract or for any other activity related thereto, except as may be explicitly
agreed upon in any power purchase contract arising from a proposal.
F. RFP Process and Schedule
The following schedule is expected to be followed for this RFP:
May 21, 2007 RFP Issued
May 29, 2007 Deadline to submit proposals (REVISED)
June 4, 2007 Azusa to notify Seller(s) short listed. Contract negotiation
begins (tentative)
Mid June, 2007 Conclude negotiations (tentative)
June 25, 2007 Approval by Azusa Utility Board/City Council and
execution ofagreement(s) by Azusa and Seller(s)
(tentative)
G. Submission Requirements
The proposal should be 6-mailed on or before Monday, May 21, 2007 to:
Bob Tang
Assistant Director of Resource Management
City of Azusa
btang@ci.azusa.ca.us
Please name you electronic file as follows:
[Short Company Name] Azusa System RA Proposal.
Late or non-responsive proposals will be rejected
No contact should be made with Azusa Utility Board, Azusa City Manager's office,
or Azusa Light and Water executive management. Any questions regarding this RFP
should be directed to Mr. Bob Tang via e-mail at btang@ci.azusa.ca.us.
037
CONFIDENTIAL
System Resource Adequacy Capacity Confirmation
1. Definition of the Transaction: When fully executed, this Confirmation("Confirmation") confirms
the transaction (the "Transaction") agreed to as of June 7, 2007 ("Effective Date") between DYPM
Power Marketing, Inc. ("DYPM" or "Seller") and City of Azusa ("City of Azusa" or "Buyer',
together with DYPM the "Parties"), in which Seller agrees to sell to Buyer the resource adequacy
capacity product described below under the terms and conditions set forth herein. As Parties are both
members of the Western System Power Pool, this Confirmation shall be subject to the WSPP
Agreement dated March 16, 2007 as may be amended from time to time (the "Master Agreement").
Where the terms and conditions of this Confirmation are in conflict with the Master Agreement, the
terms and conditions of this Confirmation shall govern the rights and obligations of the Parties. The
definitions and provisions contained in the Master Agreement, in the orders of the California Public
Utilities Commission ("CPUC") as contained in D.04-10-035, D.05-10-042, D.06-06-064, D.06-07-
031 and any subsequent or modifying rulings or orders issued by the CPUC, or guidance documents
or templates developed by CPUC Staff pursuant to CPUC rulings or orders in dockets R.04-04-003 or
R.05-12-013 or any successor proceedings (collectively, as may be amended from time to time the
"RA Rules"), in CPUC General Order 167 ("G.O. 167"), and in the tariffs and/or protocols of the
California Independent System Operator ("CAISO") as amended from time to time (the "Tariff')
shall apply to this Confirmation and are incorporated by reference.
2. Nature of the Confirmation: Subject to the terms and conditions of this Confirmation, Seller shall
sell to Buyer and Buyer shall purchase from Seller the Contract Quantity of RA Capacity as specified
below.
3. Definition of RA Capacity: "RA Capacity" means the qualified and deliverable Unit Firm capacity
(without electric energy or ancillary services) from the Specified Resource(s) identified below, that
can be counted toward meeting Buyer's Resource Adequacy Requirements procurement obligations
("System RAR") as described in CPUC Decisions 04-10-035, 05-10-042, 06-06-064 and 06-07-031
and Commission-sponsored guidance materials and templates issued by the CPUC in docket 8.05-12-
013 or any subsequent or modifying rulings or orders ("RA Rules") and in the Tariff, in the Contract
Quantity specified in this Confirmation. The RA Rules, G.O. 167 and the Tariff shall apply to this
Confirmation and are incorporated by reference. RA Capacity does not confer to Buyer any right to
the Contract Quantity of Seller's Specified Resource(s) other than the right to include such Contract
Quantity in Buyer's System RAR demonstrations to the CPUC or the CAISO ("RAR Showings")
during the Delivery Period. Specifically, Buyer shall have no rights under this Confirmation to any
capacity in excess of the Contract Quantity, or any electric energy and/or ancillary services
whatsoever(including rights to any compensation associated therewith), associated with the Specified
Resource(s). Unit Firm means with respect to a transaction, that the product subject to the
transaction is intended to be supplied from a generation asset or assets specified in the Transaction.
Seller's failure to deliver tinder a "Unit Firm" transaction shall be excused: (i) if the specified
generation asset(s)are unavailable as a result of Forced Outage (as defined in the NERC Generating
Unit Availability Data System (GADS) Forced Outage reporting guidelines) or (ii) by an event or
circumstance that affects the specified generation asset(s) so as to prevent Seller from performing its
obligations, which event or circumstance was not anticipated as of the date the transaction was agreed
to, and which is not within the reasonable control of, or the result of the negligence of, the Seller or
(iii) by Buyer's failure to perform. In any of such events, Seller shall not be liable to Buyer for any
damages,including any amounts determined pursuant to Section 21 of the Master Agreement.
1
038
Seller may retain any revenues it may receive from the CAISO or any other third party with respect to
the Specified Resource for (a) start-up, shut=down and minimum load costs, (b) capacity revenue for
ancillary services, (c) electric energy sales, and (d) any future markets for black start or reactive
power services. However,.Buyer shall be entitled to receive and retain all revenues associated with
the Contract Quantity from the Specified Resource during the Delivery Period (including any capacity
or availability revenues from RMR Agreements for the Specified Resource, and Reliability Capacity
Services Tariff capacity payments, but excluding payments described in clauses(a)and(b)above).
4. Specified Resource:
Unit Status Summer Rating (MW)
Moss Landing Unit I Active 500
Resource ID: M0SSLD_2_PSP I
SCID: DYNI
Upon prior written notice to Buyer at least seven (7) days prior to any RAR Showing or as otherwise
mutually agreed, Seller r shall have the right to substitute RA Capacity from other qualified resources
owned or controlled by Seller or Seller's Affiliate or contracted for by Seller as Specified Resources
so long as such resources satisfy all RA Rules and Tariff requirements necessary to meet the terms
and conditions for RA Capacity as set forth in this Confirmation. Seller shall ensure the RA Capacity
so substituted shall be located within the same CAISO zone (North Path 15 zone) as the unit being
substituted. Further Seller shall ensure that RA Capacity and any substitute RA Capacity shall be
listed on CAISO then current Net Qualifying Capacity (NQC) list and countable toward CAISO
system RA Capacity requirement.
5. Notice:
For purposes of designation of the Specified Resources and communication regarding performance
under this Confirmation, notices shall be sent to:
Seller: Dynegy Power Marketing, Inc. Buyer: City of Azusa
Attention: Alan Padgett Attention: Assistant Director of Resource
Address: 1000 Louisiana Street, Suite 5800 Management
Houston,TX 77002 Address: 729 N. Azusa Ave.
Azusa,CA 91702
Telephone: (713) 767-0480 Telephone: (626) 812-5214
Fax: (713) 767-0480 Fax: (626) 334-3163
Email: Alan.Padgett@dynegy.com Email:btang@ci:azusa.ca.us
6. Delivery Period:
January 1,2008 through December 31,2008
7. Contract Price: $1.45 per kW-month of RA Capacity.
8. Contract Quantity:
2008 - 10 mw MW of RA Capacity from the Specified Resource.
2
039
9. Delivery Point: The point of the Specified Resource's interconnection with the CAISO (or successor
organization)controlled grid. This point is within the CAISO.
10. Additional Covenants and Warranties of the Seller: In addition to those set forth in Section 10.2 of
the Master Agreement, Seller makes the following additional covenants, warranties and
representations to the extent necessary to perform its obligations under this Confirmation; provided,
however, that notwithstanding Section 21 of the Master Agreement, none of the warranties shall be
deemed to be breached unless Seller has received written notice of such a potential breach and fifteen
(15)days have passed without Seller remedying the potential breach.
a. Seller is duly licensed and certificated by all applicable jurisdictional regulatory agencies and
bodies, and as such holds all necessary authorizations,to participate in the CAISO markets.
b. Seller satisfies the credit requirements established by CAISO from time to time necessary to
participate in the CAISO market.
c. The Contract Quantity is owned or controlled by Seller for the Specified Resource, and the
commitment of,and the availability from,the Specified Resource in the Contract Quantity for the
purposes set forth in this Confirmation are within Seller's powers and have been duly authorized
by all necessary action.
d. The Specified Resource has been registered with, and certified by, the CAISO and/or by the
CPUC, as applicable, as deliverable to the Delivery Point in the Contract Quantity;provided, that
if the Specified Resource is not so registered or certified as of the effective date of this
Confirmation, the Specified Resource will be registered and certified prior to the commencement
of the Delivery Period, in an amount no less than the Contract Quantity. Without regard to any
such registration or certification, Seller warrants that the RA Capacity purchased by Buyer meets
all of the requirements for RA Capacity specified by the RA Rules and the Tariff relating to the
qualifying of the RA Capacity from the Specified Resource in an amount no less than the
Contract Quantity for purposes of counting toward meeting Buyer's RAR Showing. Seller shall
ensure the Specified Resource shall be listed on CAISO then current Net Qualifying Capacity
(NQC) list for the Delivery Period by no later than the deadline Buyer needs to make the annual
RA Showing to the CAISO, generally by the end of the month of September each year.
e. During the Delivery Period, the Contract Quantity of the RA Capacity sold under this
Confirmation is unencumbered by any other sale, assignment,or transfer of such RA Capacity,or
any rights conferred in respect thereof to any party other than Buyer.
f. For each Specified Resource,unless the Specified Resource is forced out of service or is out for a
Scheduled Outage as approved by the CAISO for a duration not to exceed the period permitted
under the RA Rules, or is affected by an Uncontrollable Force, Seller shall, on behalf of Buyer,
commit the Contract Quantity or shall cause the Contract Quantity to be committed to the CAISO
in compliance with established CAISO bidding and scheduling procedures. "Scheduled Outage"
means any outage, including a Maintenance Outage,that is designated"Approved Planned" in the
CAISO SLIC System,but excluding Forced Outages or outages due to events of Force Majeure.
g. Seller shall ensure that any sales or scheduling of firm electric energy or ancillary services from
the Specified Resource shall comply with this Confirmation,the Tariff and the RA Rules.
h. Seller will maintain,or cause to be maintained,the Specified Resource in accordance with"Good
Utility Practice" as defined in the Tariff,and G.O. 167 requirements,as applicable.
i. Seller will comply with all FERC-approved Tariff provisions addressing RA Capacity resource
performance obligations and penalties.
3
040
j. With respect to Scheduled Outages, Seller shall be responsible for securing replacement RA
Capacity and be liable for any penalties or assessments imposed on Buyer if any Scheduled
Outage for the Specified Resource(s) exceeds the permissible allowance.set forth in the RA
Rules.
11, Additional Representations and Warranties of Buyer: In addition to those set forth in Section
10.2 of the Master Agreement, as of the Effective Date and continuing throughout the Delivery
Period, Buyer makes the following additional representations and warranties:
a. Buyer holds the necessary authorizations to participate in the CAISO markets.
b. Buyer satisfies the credit requirements necessary to participate in the CAISO markets.
c. Buyer has all necessary authorizations, including but not limited to city approvals, to enter into
RA transactions.
12. RAR Showings: Seller shall, no later than the relevant Tariff deadline for the Seller's applicable
RAR Showings, submit a Supply Plan to the CAISO identifying the sale of the Contract Quantity to
the Buyer from the Specified Resource, which shall constitute delivery by Seller of the RA Capacity
for purposes of this Transaction. Buyer shall timely make all applicable compliance filings with the
CPUC and CAISO as required by the RA Rules and Tariff, and thereby identify or confirm the
Contract Quantity and Delivery Point of the RA Capacity purchased from Seller. Acceptance by the
CPUC and CAISO of the RAR Showings shall constitute receipt by Buyer of the RA Capacity for
purposes of this Transaction and Buyer's payment obligations hereunder. In the event Seller's Supply
Plan and Buyer's Resource Plan conflict according to CAISO, the Parties will immediately confer and
correct the Supply or Resource Plan as appropriate to properly effect the delivery of RA Capacity by
Seller and receipt by Buyer pursuant to this Confirmation.
13. Buyer's Damages Associated with Seller's Failure to Timely Confirm: In lieu of the damages
provided for in Section 21 of the Master Agreement, if Seller fails to deliver the Contract Quantity in
accordance with Section 12 above, such failure is not due to Uncontrollable Force and Buyer has
fulfilled its obligations under this Transaction, then Seller shall pay to Buyer, on the date payment
would otherwise be due to Scaler hereunder, an amount equal to the product of (i) the Contract
Quantity not qualified or delivered, and (ii) the positive difference, if any, obtained from subtracting
the Contract Price from the Replacement Price defined in Section 15.
14. Seller's Damages Associated with Buyer's Failure to Timely Confirm: ]n lieu of the damages
provided for in Section 21 of the Master Agreement, if Buyer fails to receive the Contract Quantity in
accordance with Section 12 above, such failure is not due to Uncontrollable Force and Seller has
fulfilled its obligations under this Transaction, then Buyer shall pay to Seller, on the date payment
would otherwise be due to Seller hereunder, an amount equal to the product of (i) the Contract
Quantity not received, and (ii) the positive difference, if any, obtained from subtracting the Sales
Price, as defined in Section 16, from the Contract Price.
15. Replacement Price: For purposes of this Confirmation, "Replacement Price" means the price at
which Buyer, acting in a commercially reasonable manner, purchases a replacement for any quantity
of RA Capacity not delivered by Seller or that fails at any time during the Delivery Period to qualify
as RA Capacity for an applicable RAR Showing, plus costs reasonably incurred by Buyer in
purchasing such substitute RA Capacity;provided, however, except as to a breach of Section 100), in
no event shall such price include any penalties, ratcheted demand or similar charges, nor shall Buyer
be required.to utilize or change its utilization of its owned or controlled assets or market positions to
minimize Seller's liability. If Buyer is unable to locate and purchase any replacement quantity of RA
Capacity specified in this Transaction, Seller will be liable to Buyer for any and all monetary
penalties or fines assessed against Buyer by the CPUC or the CAISO as set forth in Section 19 below.
16. Sales Price: For purposes of this Confirmation, "Sales Price" means the price at which Seller, acting
in a commercially reasonable manner, resells any quantity of the Contract Quantity (whether or not
4
041
for System RAR purposes) not received by Buyer in accordance with Section 12 above, deducting
from such proceeds any costs reasonably incurred by Seller in such reselling, or at Seller's option the
market price for such RA Capacity not received as determined by Seller in a commercially reasonable
manner; provided, however, in no event shall such price include any penalties, ratcheted demand or
similar charges, nor shall Seller be required to utilize or change its utilization of its owned or
controlled assets, including contractual assets, or market positions to minimize Buyer's liability. If
Seller does not resell all or a portion of the RA Capacity,or no market exists for determining a market
price, the Sales Price for the unsold portion of the Contract Quantity will be deemed to equal zero
dollars ($0.00).
17. Mutual Cooperation to Meet Resource-Adequacy Requirements: The Parties will make all
commercially reasonable efforts to ensure that the RA Capacity meets the requirements of the RA
Rules and the Tariff. In no event will Seller's obligations under this Confirmation include any
obligation to undertake capital improvements, facility enhancements, construct new facilities, or
engage in materially different operating procedures.
18. Mutual Cooperation to Preserve the Benefits of the Bargain: Should it become necessary to
modify this Confirmation to conform its terms and conditions to changes in Applicable Laws
("Change in Law") that materially alter or would be reasonably likely to materially alter the basic
legal and/or economic assumptions upon which a Party ("Affected Party") reasonably relied in
entering into this Confirmation or has or would be reasonably likely to have a material adverse effect
on a Party's ability to perform its obligations or realize any material benefits of the bargain struck by
the Parties, the Parties agree to negotiate in a commercially reasonable manner to modify this
Confirmation so as to address such Change in Law while preserving the material benefits of the
bargain struck by the Parties; provided, however, the Party that is not the Affected Party shall not be
required to bear any portion of the costs or risks imposed on the Affected Party as a result of the
Change in Law.
19. Indemnity Against Penalties: Seller agrees to indemnify Buyer for any monetary penalties, fines or
assessments levied against Buyer by the CPUC or the CAISO resulting from: (a) Seller's failure to
provide Buyer with any portion of the Contract Quantity; (b) Seller's failure to provide notice of(lie
non-availability of any portion of the Contract Quantity; or (c) any other failure by Seller to perform
its obligations under this Transaction. Buyer agrees to indemnify Seller for any monetary penalties,
fines or assessments levied against Seller by the CPUC or the CAISO resulting from any failure of
Buyer to perform its obligations under this Confirmation. With respect to the foregoing, the Parties
shall use commercially reasonable efforts to minimize such penalties; fines or assessments provided
that in no event shall either Party be required to utilize or change its utilization of its owned or
controlled assets or market positions to minimize these penalties and fines.
20. Governing Law: THE PARTIES AGREE THAT THE TERMS AND CONDITIONS OF THIS
CONFIRMATION AND THE RIGHTS AND DUTIES OF THE PARTIES SHALL BE
GOVERNED BY AND CONSTRUED, ENFORCED AND PERFORMED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF. CALIFORNIA, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW OR CONTRARY PROVISIONS OF THE MASTER
AGREEMENT, IF ANY. EACH PARTY WAIVES ITS RESPECTIVE RIGHT TO ANY
JURY TRIAL WITH RESPECT TO ANY LITIGATION ARISING UNDER OR IN
CONNECTION WITH THIS CONFIRMATION.
21. No Third Party Beneficiary: This Confirmation shall not impart any rights enforceable by any third-
party or create any interest, beneficial or otherwise, in any such third party (other than a permitted
successor or assignee bound by this Confirmation).
22. Confidentiality: Buyer and Seller will not disclose the terms or conditions of this Confirmation to
any other party (other than the Party's or the Party's•Affiliates' employees, lenders, counsel,
5
042
j
accountants, advisors, or ratings agencies who have a need to know such information and have agreed
to keep such terms confidential) except in order to comply with any applicable law, regulation
(including compliance with RA Rules,Tariff or CPUC confidentiality rules),or any rule of or request
for information from a control area or independent system operator in connection with any court or
regulatory proceeding or request applicable to such Party or any of its Affiliates. Seller expressly
acknowledges that public disclosure of the terms and conditions of this Confirmation to Buyer's
governing board to obtain authority to enter into this Confirmation does not constitute breach of
confidentiality.
23. IN WITNESS WHEREOF, the Parties have caused this Confirmation to be fully executed as of the
dale first written above.
By: By:
Dynegy Power Marketing, Inc. . City of Azusa
By: Eric P. Watts By:
Title: Vice President Title:
Date: Date:
6
4767799v.1
043
9 9 u -
�
r rr A ev,rrFF.,
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 25, 2007
SUBJECT: CONTRACT FOR UNDERGROUND CONDUIT INSTALLATION AT FOOTHILL
BOULEVARD AND PALM DRIVE, PROJECT # ED2007-6
RECOMMENDATION
It is recommended that the Utility Board/City Council award contract to BnB Engineering, Inc.
in the amount not-to-exceed $7,200, to furnish and install underground electric conduits at
Foothill Boulevard and Palm Drive.
BACKGROUND
Staff developed a plan to improve the electric distribution system along Foothill Boulevard
west of Citrus Avenue by extending an existing underground electric facility on Foothill
Boulevard toward the entrance of Palm Drive. A separate improvement project being
undertaken by the Rosedale project developer along Palm Drive will interconnect to these
new, short conduit extensions on Foothill Boulevard/Palm Drive, thereby providing AL&W's
underground electric system with alternate routes in case of cable failures or power line
damages south of the railway line. By implementing this project concurrently with the
Rosedale project developer, AL&W will be able to improve reliability of the underground
electric system in this area at minimal cost.
044
Staff solicited informal bids/quotes in accordance with City's Standard Purchasing Procedure.
The following bids/quotes were received:
Company Bid Amount
BnB Engineering, Inc. $ 7,200
Perry C. Thomas Construction, Inc. $ 12,408
Freeway Electric $ 19,580
Staff reviewed the lowest bid of BnB Engineering, Inc. and found it responsive to the plans &
specification requirements.
FISCAL IMPACT
Contract award will be made administratively following approval by the City Council of the
Capital Improvement Project Budget for Fiscal Year 2007-2008, which Includes a proposed
budget for this project, and is expected to be approved on July 2, 2007.
Prepared by:
Federico Langit —Senior Electrical Engineer
Hien K. Vuong—Associate Engineer
045
NNW
AZUSA
Anr • aura
0
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES n�
DATE: JUNE 25, 2007 �� f
SUBJECT: ACCEPTANCE OF GRANT OF EASEMENT FROM CERES COURT, LLC
RECOMMENDATION
It is recommended that the Utility Board/City Council accept Grant of Easement by attached
Resolution for the subject location and authorize the City Clerk to file it in the Office of the
Los Angeles County Recorder.
BACKGROUND
Landowner is required to grant an easement to Azusa Light &Water for any electric facilities
to be installed in his or her property.. These grants of easements allow the Utility-owner the
right-of-way for operation and maintenance of such facilities. Attached herewith are the grant
of easement and its "Exhibit A" and "Exhibit B" for the electric facilities located in Lot 19 of
Tract 4189 with address of 950 West Foothill Boulevard in the City of Azusa. This easement
was secured and will be used for right-of-way access in the operation and maintenance of
underground electric conduits, cables and related substructures installed at this property.
FISCAL IMPACT
All costs associated with the processing of this grant of easement are borne by the developer.
There is no cost to the City.
Prepared by: Hien K. Vuong—Associate Engineer
Resolution.doc GrantOfEaserrent-C
eresCourt.pdf
046
RESOLUTION NO.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF
AZUSA ACCEPTING A CERTAIN GRANT OF EASEMENT AND DIRECTING THE
RECORDING THEREOF.
THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY
RESOLVE AS FOLLOWS:
SECTIONS 1. That certain Grant of Easement executed by Jack Hall- President of Ceres
Court, LLC , under date of the May 15, 2007 to the CITY OF AZUSA a Municipal Corporation
in Los Angeles County, State of California, its successors and assigns, the right of perpetual
easement and right of way solely for the purpose of constructing, laying, maintaining, operating,
using, altering, repairing, replacing, inspecting and relocating therein and thereupon and /or
removing there from electrical utility lines and related facilities, with any and all connections and
devices necessary thereto for the transportation, distribution and/or supply of electricity to the
property, in, on, over, under across and along the following described real properties situated in
the CITY OF AZUSA, Los Angeles County, State of California, to wit:
See Exhibit "A" and `B" attached hereto each Grant of Easement
Said Grants of Easements are hereby accepted and the City Clerk is hereby authorized and
directed to cause the same to be filed for record in the office of the County Recorder of said
County.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS day
Joseph Rocha, Mayor
ATTEST:
Vera Mendoza, City Clerk
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City
Council of the City of Azusa at a regular meeting of the Azusa Light&Water Utility Board on
the 25h day of June, 2007.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Vera Mendoza, City Clerk
047
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
The City of Azusa THIS DOCUMENT IS FILED AT THE
Light and Water Department REQUEST OFTHE CITY OF AZUSA
729 North Azusa Avenue PURSUANT TO SF,CTION 6103 OF
P.O.BOX 9500 774E GOVERNMENT CODE. NO
Azusa,CA 91702 FEE SHALL BE CHARGED THEREFOR.
(SPACH ABOVE THIS LINE FOR RECORDERS USE)
GRANT OF PERMANENT EASEMENT
FOR VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged, -t�tb CWV+I LLG ("Grantor"), does hereby grant to the
CITY OF AZUSA, CALIFORNIA, a municipal corporation, its successors and assigns, and its
and their employees,contractors and agents ("Grantee"), the permanent easement and right-of-
way to construct, maintain, operate, use, repair, alter, replace, and remove electrical systems and
communications systems consisting of, but not limited to, overhead power lines, poles and
fixtures, guy wires, underground conduits, pull boxes, transformers, pads, vaults, cables,
conductors and other fixtures and appliances, with the necessary appurtenances, for conveying
electric energy to be used for light, heat,power and for transmitting data by electrical means
and/or other purposes ("Systems") over, under, in, along, and across the following described
parcel of real property situated in the City of Azusa, County of Los Angeles, State of California:
As described in Exhibit "A" and depicted in Exhibit "B" attached
hereto and made a part hereof.
Together with all necessary and convenient means of ingress and egress to and from said right-
of-way or strip or parcel of land, free from any and all buildings, equipment, vegetation,
combustible materials,or obstructions of any kind, for the purpose of constructing,
reconstructing, maintaining, operating, repairing,renewing,replacing,using, altering, or
removing in any manner the Systems together with any and all of the purposes hereinbefore
mentioned.
TO HAVE AND TO HOLD the above granted and described premises unto the
CITY OF AZUSA,CALIFORNIA, its successors and assigns forever.
IN WITNESS HERETO, Grantor has executed this Grant of Permanent Easement
this day of MAU . 20-01
Ce�� C�u+�k l LSC
By: Glr �G
Its:
1
048
STATE OF I r ) CAPACITY CLAIMED BY SIGNER
COUNTYOF GY..1`A ��
-, l,n) ) - INDIVIDUAL(S)
V11''�� Sr - CORPORATE
On i•t� 20-gbefore me, �t'c a, Nii ALL , personalty
appeared T6f mu- -personally known to me- O I E
OR - - proved to me on the basis of satisfactory evidence to be the personK whose 1 iV1(/rV tyv'
name(s) Mare subscribed to the within instrument and acknowledged to me that VLE )
she/they executed the same irK s/hedtheir authorized capacityjies , and that by - PARTNER(S)
er/their signature(5� on the instrument the persono), or the entity upon behalf of _ ATTORNEY-IN-FACT
which the person acted,executed the instrument
- TRUSTEE(S)
Witness my hand and official seal.
- SUBSCRIBING WITNESS
.- GUARDIAWCONSERVATOR
OTHER:
SIGNATURE OF NOTARY
KN} FAM SIGNER IS REPRESENTING:
Cornm>fstWlm# 1527887 NAME OF PERSON(S)Og ENTITY(IES)
smilmmdhocourty
Mycarml.EVbwNov 19, —
ATTENTION NOTARY: Although the information requested below is OPTIONAL,it could T�j leqqr 10C
prevent fraudulent attachment of this certificate to unauthorized documents. �(! V/
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT Number of Pages
RIGHT: �l
' Date of Document
Signer(s)Other Than Named Above
049
e
EXHIBIT "A"
LEGAL DESCRIPTION
EASEMENT DESCRIPTION:
BEING A PORTION OF LOT 19 OF TRACT NO.4189 , IN THE CITY OF AZUSA,
COUNTY OF LOS ANGELES., STATE OF CALIFORNIA AS PER MAP
RECORDED IN BOOK 46,PAGE 3 OF MAPS,RECORDS OF LOS ANGLES
COUNTY DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT ON THE SOUTHERLY LINE OF LOT 19 DISTANCE
SOUTH 690 22'20" WEST 281.82 FEET FROM THE EASTERLY CORNER OF SAID
LOT TO THE TRUE POINT OF BEGINNING,THENCE NORTH 00'08'40"WEST A
DISTANCE OF 18.00 FEET,THENCE NORTH 89°51'20" WEST A DISTANCE OF
16.00 FEET, THENCE NORTH 00'08'40"WEST A DISTANCE OF 23.60 FEET,
THENCE NORTH 69°22'20' EAST A DISTANCE OF 16.95 FEET TO THE TRUE
POINT OF BEGINNING.
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AZUSA
fV
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES��Q�
V '—
DATE: JUNE 25, 2007
SUBJECT: ACCEPTANCE OF GRANT OF EASEMENT FROM EURILA ENTERPRISES, INC.
RECOMMENDATION
It is recommended that the Utility Board/City Council accept Grant of Easement by attached
Resolution for the subject location and authorize the City Clerk to file it in the Office of the
Los Angeles County Recorder.
BACKGROUND
Landowner is required to grant an easement to Azusa Light &Water for any electric facilities
to be installed in his or her property. These grants of easements allow the Utility-owner the
right-of-way for operation and maintenance of such facilities. Attached herewith are the grant
of easement and its "Exhibit A" and "Exhibit B" for the electric facilities located in Parcel I of
Parcel Map 062034 with addresses of 172-178 West Paramount Street in the City of Azusa.
This easement was secured and will be used for right-of-way access In the operation and
maintenance of underground electric conduits, cables and related substructures installed at
this property.
FISCAL IMPACT
All costs associated with the processing of this grant of easement are borne by the developer.
There is no cost to the City.
Prepared by: Hien K. Vuong—Associate Engineer
Resolution.doc Easement-Eurila.pdf
052
RESOLUTION NO.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF
AZUSA ACCEPTING A CERTAIN GRANT OF EASEMENT AND DIRECTING THE
RECORDING THEREOF.
THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY
RESOLVE AS FOLLOWS:
SECTIONS 1. That certain Grant of Easement executed by Eurila Enterprises, Inc. , under
date of the May 30. 2007 to the CITY OF AZUSA a Municipal Corporation in Los Angeles
County, State of California, its successors and assigns, the right of perpetual easement and right
of way solely for the purpose of constructing, laying, maintaining, operating, using, altering,
repairing, replacing, inspecting and relocating therein and thereupon and/or removing there
from electrical utility lines and related facilities, with any and all connections and devices
necessary thereto for the transportation, distribution and/or supply of electricity to the property,
in, on, over, under across and along the following described real properties situated in the CITY
OF AZUSA, Los Angeles County, State of California, to wit:
See Exhibit "A" and `B" attached hereto each Grant of Easement
Said Grants of Easements are hereby accepted and the City Clerk is hereby authorized and
directed to cause the same to be filed for record in the office of the County Recorder of said
County.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS day
Joseph Rocha, Mayor
ATTEST:
Vera Mendoza, City Clerk
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City
Council of the City of Azusa at a regular meeting of the Azusa Light &Water Utility Board on
the 25h day of June, 2007.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Vera Mendoza, City Clerk
053
RECORDING REQUESTED BY AND
WREN RECORDED MAIL TO:
The City of Azusa THIS DOCUMENT IS FILED AT THE
Light and Water Department REQUEST OF THE CITY OF AZUSA
729 North Azusa Avenue PURSUANT TO SECTION 6103 OF
P.O.Box 9500 THE GOVERNMENT CODE. No
Azusa,CA 91702 FEE SHALL.BE CHARGED THEREFOR.
(SPACE ABO VETa6 LA'EFOR RECORDERS USE)
GRANT OF-PERMANENT EASEMENT
FOR VALUABLE CONSIDERATION,receipt of which is hereby
acknowledged, EURILA ENTERPRISES,INC/owner ("Grantor"),does hereby giant to the
CITY OF AZUSA,CALIFORNIA,a municipal corporation,its successors and assigns, and its
and their employees, contractors and agents ("Grantee"),the permanent easement and right-of-
way to construct,maintain,operate,use,repair, alter,replace, and remove electrical systems and
communications systems consisting of,but not limited to,overhead power lines,poles and
fixtures,guy wires, underground conduits,pull boxes,transformers,pads, vaults,cables,
conductors and other fixtures and appliances,with the necessary appurtenances,for conveying
electric energy to be used for light,heat,power and for transmitting data by electrical means
and/or other purposes("Systems")over, under,in,along,and across the following described
parcel of real property situated in the City of Azusa,County of Los Angeles, State of California:
As described in Exhibit"A" and depicted in Exhibit "B" attached
hereto and made a part hereof.
Together with all necessary and convenient means of ingress and egress to and from said right-
of-way or strip or parcel of land,free from any and all buildings,equipment, vegetation,
combustible materials,or obstructions of any kind,for the purpose of constructing,
reconstructing,maintaining, operating,repairing,renewing,replacing,using, altering,or
removing in any manner the Systems together with any and all of the purposes hereinbefore
mentioned.
TO HAVE AND TO HOLD the above granted and described premises unto the
CITY OF AZUSA,CALIFORNIA,its successors and assigns forever_
IN WITNESS HERETO,Grantor has executed this Grant of Permanent Easement
this 30 day of %rl��_ '2027
EURILA ENTERPRISES, INC
By:'--
Richer Massethe pone
Its:President Its: Treasurer
054
STATE OF 0.G nl a ) CAPACITY CLAIMED BY SIGNER
COUNTY OFUS "Lea- )
- INDIVIDUAL(S)
- CORPORATE
On 5.30.01 ,20!Ll before meA bee C✓ ,,r,2LU eAuoltc, personally
appeared V-,0r c* rrlait2 cwtd W Oncrc Le QQL.V. - - OFFICER(S)
OR - - proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) -Ware subscribed to the within instrument and acknowledged to me that TITLE($)
*efshe/they executed the same in +tisR"Aheir authorized capacity(ies), and that by - PARTNER(S)
his/hev/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s)acted,executed the instrument. - ATTORNEY-IN-FACT
- TRUSTEE(S)
Witness my hand and official seal.
- SUBSCRIBING WITNESS
- GUARDIAN/CONSERVATOR
- OTHER:
SIGNATURE OF NOTARY
_ AMEER CRUZ
COMM#1700204 � SIGNER IS REPRESENTING:
N �~ � A NAME'1 N NAME OF PERSON(S)OR ENTITY(IES)
ATTENTION NOTARY: Although the information requested below is OPTIONAL,it could ! Title or Type of Document
prevent fraudulent attachment of this certificate to unauthorized documents.
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT Number of Pages
RIGHT:
Date of Document
Signer(s)Other Than Named Above
055
EXHIBIT "A"
LEGAL DESCRIPTION
ELECTRICAL PURPOSES
PARCEL 1, PARCEL MAP 062034
A PORTION OF PARCEL 1 OF PARCEL MAP 062034 IN THE CITY OF AZUSA AS PER MAP
FILED IN BOOK 339, PAGES 3 AND 4 IN THE OFFICE OF THE COUNTY RECORDER OF
LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID PARCEL 1; THENCE SOUTH
00021'08" WEST ALONG THE SOUTHERLY LINE OF SAID PARCEL 1 A DISTANCE OF
83.00 FEET; THENCE SOUTH 89038'55" EAST 11.33 FEET; THENCE NORTH 00021'08"
EAST 20.33 FEET; THENCE NORTH 89°38'55" WEST 1.33 FEET; THENCE NORTH
00021'08" EAST 62.67 FEET TO A POINT ON THE NORTHERLY LINE OF SAID PARCEL 1;
THENCE NORTH 8938'55"WEST 10.00 FEET TO THE POINT OF BEGINNING.
THE AREA OF THE ABOVE DESCRIBED PARCEL OF LAND IS 857.04 SQUARE FEET.
DATED THIS 11TH DAY OF JUNE, 2007.
F.
tANO SU
O
Exp. 3 t
WALTER F. LUNDIN, L.S. 7707 nog
REGISTRATION EXPIRES 12/31/08
Fc
",}'5 6
EXHIBIT "B"
SKETCH OF ELECTRICAL EASEMENT
PARCELI, PARCEL MAP N0. 062034
—S0021'08"W 180.00'
I
zI MAP N0. 06234
a PARCEL t, PARCEL 339/3'4
z �� I�
00 1
o I N89=3855"Wco
66 1.33" N0021'08 E
10.00'z ( N00'21'08"E 62.67' 20.33' I z
I N8938'S5"W S89*3 — — — —
40_ S893855 E 1
P.oa — S0021'08"W 83.00'
NW CORNER S0021'08"W 180.00'
PARCEL i
z
a
SUNSET AVENUE
LAND
F'/////L''""1 LF
9
2 3 6S SCALE 1"z=:40
7707
CAL��P
0,57
�S
AZUSA
EIGHT 6 WATER
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES<K
DATE: JUNE 25, 2007 \,' '
SUBJECT: AWARD OF CONTRACT FOR GLADSTONE YARD IMPROVEMENTS,
PROJECT WF-239
RECOMMENDATION
It is recommended that the Utility Board/City Council: (1) approve the award of contract for
the construction of Gladstone Yard Improvements Project to MG Enterprizes, Inc; and (2)
amend capital Improvement project budget in the amount of $74,000 in order to pay the low
bidder.
BACKGROUND
The Water Division accepted and publicly opened bids on the above referenced Gladstone
Yard improvement project on May 29, 2007, following prior approvals by the Utility Board on
March 26, 2007. MG Enterprizes, Inc's Bid for the construction of the project is
$326,980.50. The bids of the second and third low bidders are Hardy & Harper , Inc.,
$363,000, and E.C. Construction, Inc., $446,318.95.
This capital improvement project was originally budgeted in the amount of $255,000.
However, due to the large amount of asphalt paving for the project, the volatility of the price
of oil has caused increases in the cost of asphalt, in turn leading to bids that were more than
what was originally budgeted. Thus, approval of a budget amendment is requested as a part
of this bid award.
FISCAL IMPACT
The fiscal impact of this construction contract is $326,980.50; this amount is to be funded
through capital improvement project budget account number 32-80-000-721-7130/72106A-
7130,
2-80-000-721-7130/72106A-
7130, which after being amended in the amount of $74,000 with Water Fund 32 reserves, will
have a balance of $329,000.
Prepared by:
Chet Anderson, Assistant Director of Water Operations
058
AZUSA -
EIGHT • 'WATER
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
i
DATE: JUNE 25, 2007
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
$90,000 to the 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 Rosedale developer. The
costs of the inspections are reimbursable in part by ALP. At this time, the contract limit of
$180,000 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 $90,000 to the
existing contract will authorize the Finance Department to continue to pay Civiltec up to
$270,000 in aggregate.
FISCAL IMPACT
This request has limited fiscal impact. The City has a partial funding obligation for the 890
reservoirs of approximately 72%. The Sierra Madre pump station, 1023 Reservoir and 1023
Pump station are funded by ALP in their entirety. The approved additional payments to
Civiltec will initially be funded from the Capital Improvement Budget Account 32-80-000-721-
7130/72107A-7130.
Prepared by: Chet Anderson, Assistant Director- Water Operations
1g'.
i mrt a werr
AZUSA
o
MO
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: JUNE 25, 2007 `� 1`
SUBJECT: RESOLUTION AUTHORIZING SUBMITTAL OF FUNDING REQUEST FORM TO
THE DEPARTMENT OF CONSERVATION FOR RECYCLING OF BEVERAGE
CONTAINERS
RECOMMENDATION
It is recommended that the Utility Board/City Council adopt resolution authorizing submittal
of funding request form to the Department of Conservation's Division of Recycling for
recycling of beverage containers.
BACKGROUND
SB 332 was adopted in 1999 and appropriates $10.5 million annually to cities and counties
for beverage container recycling and litter reduction. Funds are allocated based on per capita
formula through the Department of Conservation's Division of Recycling.
A majority of the funds received by the City have been used to purchase 20-cubic yard roll off
recycling containers which are used by schools and non-profit organizations to recycle
newspaper, mixed paper, aluminum cans, and plastic bottles.
The program, Module Azusa Recycling Station (MARS-1), has helped raise funds for charities
and buy additional teaching or educational supplies for the students.
Since the beginning of our program in 2001, fifteen schools and non-profit organizations have
received their recycling containers and generated total proceeds of over $18,000. in
September 2006, the City distributed in-classroom containers to participating schools so
students can easily separate the recyclable materials inside their classroom.
0'60.
For fiscal year 2007-2008, the City is entitled to receive $12,837 pursuant to submittal of a
funding request form. These funds will be used to: (1) purchase 20-cubic yard roll off
containers that may be requested, (2) promote beverage container recycling and litter clean-
up activities, and (3) award prizes to winning participants in future recycling contests amongst
schools.
FISCAL IMPACT
This action will add $12,837 to the City's effort to recycle and comply with AB 939.
Prepared by:
Liza Cawte, Administrative Technician
Attachment:
In
DOC Reso.doc DOC_Formpdf
061
i RESOLUTION NO.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF
THE CITY OF AZUSA AUTHORIZING SUBMITTAL OF
FUNDING REQUEST FORM TO THE DEPARTMENT OF
CONSERVATION'S DIVISION OF RECYCLING.
WHEREAS, the people of the State of California have enacted the California Beverage
Container Recycling and Litter Reduction Act that provides funds to cities and counties for
beverage container recycling and litter cleanup activities; and
WHEREAS, the California Department of Conservation's Division of Recycling has been
delegated the responsibility for the administration of the program within the State, setting up
necessary procedures for cities and counties or their designees under the program; and
WHEREAS,the City of Azusa has developed a program proposal that will recycle beverage
containers,abate litter,and provide a means for schools and non-profit organizations to raise funds
for charities.
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF
AZUSA DOES HEREBY RESOLVE AS FOLLOWS:
1. That the City Council authorizes the submittal of the Funding Request Form to the
Department of Conservation's Division of Recycling.
2. That the City Council authorizes and empowers the Assistant to the Director of
Utilities or his or her designee to execute in the name of the City of Azusa all
necessary forms hereto for the purpose of securing payments and to implement and
carry out the purposes specified in Section 14581 (a)(4)(A) of the California
Beverage Container Recycling and Litter Reduction Act and provide information
regarding this program to the Division upon request.
PASSED, APPROVED, AND ADOPTED on this 25th day of June 2007.
Joseph R. Rocha, Mayor
I HEREBY CERTIFY that the foregoing resolution was duly passed by the City Council of the City
of Azusa at a regular meeting thereof on the 25th day of June 2007, by the following vote of the
City Council:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Vera Mendoza, City Clerk
062
Funding Request Form Print View Page 1 of 1
r
California Department of Conservation
Division of Recycling
Community Outreach Branch
June 14.2007
Funding Request Form Summary
City/County:Azusa
Eligible Amount$12.837
Contact for Funding Request Form
Mr.Cary Katscheuer
Asst to the Director of Utilities
Azusa
729 N.Azusa Avenue
Azusa, CA 91702-
Phone:(626)812-5174 ext
Fax: (626)334-3163 ext
Email:ckaischeuer@ci.azusa.ca.us
Project Description
(1)Purchase 20-cubic yard roll off containers that may be requested(2)Promote beverage container recycling and Filter
deart-up(3)Award prizes to winning participants in future recycling contests amongst schools
Supermarket site restriction: No
Selected Activities Amount
Beverage Container Collection Programs $4'000
schools
Elementary - Middle - -
High
Equipment/supplies
Storage Containers(dumpster,roll-off)
Advertising f Promotional $2.000
Promotional Items Print Ads l Flyersl Posters
Other(Prizes)
Recycling Education $1,837
Sehoors
Elementary Middle
High
Grand Tota! $12,837
These funds may not be used for activities unrelated to beverage container recycling or litter reduction.[Public
Resources Code 14581.(2)(4)(C)l .
hos://secure.conservation-ca.gov/CAPRS/frf/Main/FRFPrintView.aspx 6/14/2007
061
L
low
-
AZUSA
rur � wurr
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIE,�,*
DATE: JUNE 25, 2007
SUBJECT: REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF AZUSA AND JAR-
UNIVERSITY COMMONS, LLP
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the attached agreement in its
substantial form and authorize the City Manager to execute final agreement upon completion
of a few minor revisions.
BACKGROUND
JAR-University Common, LLP ("Developer") is known as the Foothill Shopping Center. As you
are aware, this project is a mixed-use development which consists of a multi-dwelling housing
at the west end of the project site and major renovation of the existing commercial center.
Through lengthy negotiations between the City and the Developer, certain existing utility
infrastructure must be replaced and new infrastructure must be installed in order to properly
serve the proposed development. In the interest of time, and to better coordinate the
Project, the Developer has agreed to design and construct the required utility infrastructure,
namely, the water lines, fire hydrants, and an underground electrical distribution line. Upon
completion, the Developer will be reimbursed for the actual and documented costs. The
attached agreement has gone through several revisions and has captured the understanding
between the City and the Developer. However, minor revisions are still in the works mainly
regarding the terms of the reimbursement.
FISCAL IMPACT
Developer will be reimbursed by City for installation of utility infrastructure from electric and
water funds, and so additional capital project funds will have to be appropriated. Estimated
costs are $633,850 and $254,350 for water and electric lines, respectively.
Agreerrent.pdf
Prepared by: J. Hsu
064
REIMBURSEMENT AGREEMENT
1. PARTIES AND DATE
This Reimbursement Agreement ("Agreement") is made this day of
2007 ("Effective Date") between (i) The City of Azusa ("City"), a California
municipal corporation, and (ii) JAR-University Commons, LLP ("Developer"). The term
"Developer" includes Developer's successors to all or any portion of the Property.
2. RECITALS
2.1 Developer has entered into a Statutory Development and Owner Participation
Agreement with the City of Azusa and the Azusa Redevelopment Agency concerning real
property more fully described in such Agreement and commonly referred to as the Foothill
Shopping Center located in the City of Azusa, Los Angeles County, California("Property").
2.2 Developer is developing a mixed-use project on the Property("Project").
2.3 As a condition to developing the Project the City desires the design and
construction of new and replacement utility infrastructure improvements. Specifically, this scope
includes the design and replacement of existing water lines, fire hydrants and the design and
installation of electrical lines among other work as more fully described in Attachment A. The
above are collectively referred to as the"Utility Infrastructure Improvements".
2.4 Intentionally Omitted
2.5 In light of certain engineering concerns and requirements, City has determined
that requiring Developer to construct the Utility Infrastructure Improvements will result in more
consistent and orderly improvement of these utilities on the Project site.
ORANGE\EHULL\17068.1
065
2.6 The costs to Developer for constructing the Utility Infrastructure Improvements
have been estimated by City to be ($�, The Utility Infrastructure
Improvements consist of the following:
• Design work to provide fully functional and operational improvements as
described in Attachment A.
• Installation of said fully functional and operational improvements as
described in Attachment A.
3. TERMS
3.1 Reimbursement of Costs.
3.1.1 Reimbursement of Utility Infrastructure Improvement Costs. Upon
City's acceptance of the Utility Infrastructure Improvements, Developer shall be entitled to a
reimbursement in the amount of the Actual Documented Costs for designing and constructing the
Utility Infrastructure Improvements.
Although the reimbursement amount described above is estimated to be
($ , the parties acknowledge that the amount City is ultimately required
to reimburse Developer may vary from the estimate but shall nevertheless be the Actual
Documented Costs incurred by Developer attributable to the design and construction of the
Utility Infrastructure Improvements as identified in:
• The contract for design work by Adams Engineering as described in
Attachment A.
• The installation of the improvements by Near Cal Construction as
described in Attachment A.
ORANGEIERULU\37068.1 2
066
a
"Actual Documented Costs" is defined as those costs incurred by Developer, for
the Utility Infrastructure Improvements, as evidenced by sufficiently detailed invoices, contracts,
and other documentation, which are reasonably acceptable to the respective utility Engineer as
accurately outlining Developer's costs.
City shall reimburse Developer for the above amounts within thirty (30) calendar
days after City's acceptance of the dedication of the entirety of the Utility Infrastructure
Improvements and upon presentation of invoices with all supporting documents to_the City's
reasonable satisfaction. City shall reimburse Developer via issuance of two (2) two-party checks,
payable jointly to Developer and the contractor who has been hired by Developer to design the
Utility Infrastructure Improvements and to install the Utility Infrastructure Improvements.
3.1.2 Cost Verification. Prior to entering into this Reimbursement Agreement,
Developer has sought and received three (3) informal bids from reliable and reputable
contractors, licensed and capable of satisfactorily completing the work to be performed pursuant
to the contract with Adams Engineering for the design work (Attachment A). Said bids have
demonstrated that the cost of the design work contracted for as identified in Section 3.1 are fair
and reasonable. A copy of said bids have been provided to the City for their review.
Developer has identified Near Cal Construction as their preferred contractor. City
shall reimburse Developer for the cost of the construction work provided Developer provides the
City with three (3) informal bids from reliable and reputable contractors licensed and capable of
satisfactorily completing the work. The City shall reimburse Developer the Actual Documented
Costs up to a maximum of the lowest qualified bid received by Developer.
ORANGETHULUl37068.1 3
06f
3.2 Construction and Dedication of Utility Infrastructure Improvements.
3.2.1 Construction and Dedication of Utility Infrastructure Improvements.
In complete satisfaction of Developer's obligations in order to construct its Project and in
consideration for City's reimbursement obligations under this Agreement, Developer shall, at its
sole cost, expense and liability, develop and dedicate to City the Utility Infrastructure
Improvements. The Developer shall develop the Utility Infrastructure Improvements in
accordance with plans and specifications to be approved by the City, in accordance with then-
current City public works standards and policies.
The Utility Infrastructure Improvements shall be dedicated by Developer to City
as provided in Section 3.2.2. The dedication of the Utility Infrastructure Improvements in
accordance with this Section 3.2.1 and City's acceptance of said Utility Infrastructure
Improvements shall fully satisfy Developer's obligations in order to obtain a "will serve" letter
and shall constitute the sole consideration for the City's Utility Infrastructure Improvements
reimbursement obligations under this Agreement.
3.2.2 Meaning of "Dedicate". Developer shall offer, at no cost to the City
except as provided for herein, for dedication the Utility Infrastructure Improvements at the time
required by the Director of Utilities in the exercise of his or her reasonable discretion, except as
otherwise provided in any applicable subdivision or other agreements. The water utility
improvements will be eligible for acceptance upon completion of construction. The electric
utility improvements will be eligible for acceptance upon the opening of sales models.
The satisfaction of the Developer's obligations with respect to the dedication of
the Utility Infrastructure Improvements described in this Section 3.2 shall be contingent upon the
Director of Utilities' acceptance of said improvements, which acceptance shall occur in a manner
ORANGEIEHULL\17068.1 4
063
consistent with the City's standard policies, and on the Developer's compliance with its
obligations under any applicable subdivision or other agreements with respect thereto.
3.2.3 Prevailing Wage. The Developer acknowledges that the City has made
no representation, express or implied, to the Developer or any person associated with the
Developer regarding whether or not laborers employed relative to the construction, installation or
operation of the Project must be paid the prevailing per diem wage rate for their labor
classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et
seq. The Developer agrees with the City that the Developer shall assume the responsibility and
be solely responsible for determining whether or not laborers employed relative to the
construction, installation or operation of the Project must be paid the prevailing per diem wage
rate for their labor classification, as determined by the State of California, pursuant to Labor
Code Sections 1720, et seq.
The Developer, on behalf of itself, its successors, and assigns, waives and releases
the City from any right of action that my be available to any of them pursuant to Labor Code
Section 1781. The Developer acknowledges the protections of Civil Code Section 1542 relative
to the waiver and release contained in this Section 3.2.3 which reads as follows:
A GENERAL RELEASE DOES NOT EXTEND TO
CLAIMS WHICH THE CREDITOR DOES NOT KNOW
OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN
BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.
By initialing below, the Developer knowingly and voluntarily waives the
provisions of Section 1542 solely in connection with the waivers and releases of this Section
3.2.3:
Developer's Initials
0RANGE\EHULL\37068.1 5
069
Additionally, the Developer shall indemnify, defend and hold harmless the City against any
claims pursuant to Labor Code Section 1781 arising from this Agreement or the construction,
installation or operation of all or any portion of the Project.
3.3 Not a Statutory Development Agreement. This Agreement is not a statutory
development agreement as described by Government Code Section 65864, et seq. This
Agreement confers no vested entitlements with respect to the development of the Project. This
Agreement does not limit, in any way whatsoever, any authority the City may have to lawfully
increase impact fees, change land use regulations, or otherwise lawfully exercise all powers
available to the City pursuant to its police power, statutes, and judicial decision. Likewise,
nothing in this Agreement shall limit, in any way, any right or remedy the Developer may have
to protest or challenge any unlawful increase in impact fees.
3.4 City's Remedies Upon Developer's Default. Subject to Section 3.2, if
Developer fails to complete and dedicate a particular Utility Infrastructure Improvement
described in Section 3.2 in the manner required by this Agreement then City may send written
notice to Developer directing Developer to cure the default. Developer shall have fifteen (15)
calendar days following its receipt of the notice to cure or to commence to cure the default under
this Agreement. For purposes of this Agreement, "commence to cure" means that Developer
begins to cure the default within the 15-day time period and diligently.completes cure of the
default within a reasonable time, which time shall not exceed sixty (60) calendar days following
Developer's receipt of the notice. If Developer fails to cure or to commence to cure the default
as required by this Section, upon prior written notice to Developer, City may immediately
exercise any one or more of the following remedies, independently or conjunctively:
ORANGE\EHULL\77068.1 6
Q / V
(i) City may terminate this Agreement in its entirety, City shall have no
obligation to reimburse Developer for those costs as set forth in Section 3.1.1 and shall recover
from Developer the amount of any reimbursement payments paid to Developer as part of City's
reimbursement obligations under Section 3.1.1. Notwithstanding the above, however, (1) City
shall compensate Developer for Developer's actual third party costs (without interest) incurred
with respect to any Utility Infrastructure Improvements satisfactorily completed and dedicated to
City prior to termination, and (2) City shall compensate Developer for the value ("Incomplete
Value"), as determined in the Director of Utilities' reasonable discretion, of any Utility
Infrastructure Improvements which are not satisfactorily completed and dedicated to City prior to
termination; or
(ii) Without limiting the effect of subparagraph (i), City may exercise any
other right or remedy available to it at law or in equity.
3.5 No Waiver. Developer's or City's failure to insist on performance of any of the
terms or conditions of this Agreement or to exercise any right, remedy or privilege, or
Developer's or City's waiver of any breach hereunder, shall not thereafter be deemed a
subsequent waiver of any other terms, conditions, or rights, remedies or privileges, whether of
the same or similar type. No party will be deemed to have waived any rights under this
Agreement unless the waiver is made in writing and signed by the waiving party's duly
authorized representative. All rights and remedies provided for under this Agreement are
cumulative.
3.6 Cooperation. The parties agree to cooperate with each other in furthering the
purposes of this Agreement. The parties hereby agree to take such other actions and execute
such other reasonable documents as are consistent with this Agreement and as are reasonably
ORANOE\EffnL137068.1 7
071
necessary to effectuate this Agreement; provided, however, that the foregoing shall not require
City to take any legislative act or exercise its discretion in any particular manner.
3.7 Entire Agreement. This Agreement contains the final and complete agreement
between the parties with respect to the matters herein discussed and supersedes all previous
communications and agreements between them, either oral or written, to the extent such prior
communications and agreements are inconsistent with this Agreement.
3.8 No Agency. Each party acknowledges that it is not the agent or fiduciary of the
other.
3.9 No Assignment. This Agreement, including, without limitation, Developer's
obligations under Section 3.2, is not assignable, in whole or in part, by Developer, without the
prior written consent of City, which shall not be unreasonably withheld, conditioned or
restricted, and any attempt to make such assignment without City's consent shall be void and
shall constitute an incurable material default under this Agreement.
3.10 Attorneys' Fees. In the event that any action or proceeding is commenced
between City and Developer to enforce or interpret any term of this Agreement, the prevailing
party in such action or proceeding, in addition to all other relief to which it may be entitled, shall
be entitled to recover from the other party the prevailing party's costs of suit and reasonable
attorney's fees. The prevailing party shall be as determined by the court in accordance with
Code of Civil Procedure Section 1032. The attorney's costs and fees recoverable pursuant to this
Section 3.10 include, without limitation, attorney's costs and fees incurred on appeal and those
incurred in enforcing any judgment rendered. Attorney's costs and fees may be recovered as an
element of costs in the underlying action or proceeding or in a separate recovery action.
ORANGEMHULL\37068.1 8
072
3.11 Notices. All notices, demands or other communications (collectively, "Notices")
required or allowed by this Agreement shall be in writing and shall be considered given: (i)
when delivered in person to the recipient named below; or (ii) two (2)business days after deposit
in the United States mail, certified, with return receipt requested and postage prepaid, addressed
to the recipient named below. All Notices shall be addressed as follows:
If to City: City of Azusa
Attn:
Fax:
With copies to: Best Best & Krieger
Attn: Sonia Carvalho
Azusa City Attorney
5 Park Plaza, Suite 1500
Irvine, CA 92614
Fax: (949)260-0972
If to Developer: Mr. Andrew Trachman
President
Trachman Indevco, LLC
c/o JAR University Commons, LLC
1801 Century Park East
Suite 1040
Los Angeles, CA 90067
Mr. John Francis
Francis Properties
501 S. Beverly Drive, Suite 100
Beverly Hills, CA 90212
Mr. Andrew "Andy" D. Friedman
Friedman& Solomon, LLP
9665 Wilshire Boulevard, Suite 810
Beverly Hills, CA.90212-2340
ORAN6EEHULL9706$.1 9
073
Either party may, by notice given at any time, require subsequent notices to be given to another
person or entity, whether a party or an officer or representative of a party, or to a different
address,.or both. Notices given before actual receipt of notice of change shall not be invalidated
by the change.
3.12 Governing Law. This Agreement and its provisions shall in all respects be
interpreted, construed, enforced and governed by and under the laws of the State of California,
without regard to its conflict of laws principles.
3.13 Consent to Jurisdiction, Venue and Service. Any action or proceeding brought
respecting this Agreement shall be instituted and maintained in the appropriate court in the
County of Los Angeles, California. Developer hereby forgoes and waives any provision of State
or Federal law or judicial decision providing for a change of venue from such court on the
grounds that City is or may be a party to any such action or proceeding, including, without
limitation, California Code of Civil Procedure Section 394. Each party hereby irrevocably
consents to the personal jurisdiction of the court. Service of process may be made in any manner
provided by law.
3.14 Modification. This Agreement may be modified only by another written
instrument duly authorized and executed by both City and Developer. The foregoing
notwithstanding, the City Manager is hereby authorized to make such minor amendments to this
Agreement on behalf of City as the City Manager may deem prudent and necessary in its
administration,with the concurrence of the.City Attorney.
3.15 Severability. The provisions of this Agreement are specifically made severable.
If any clause, provision, rights and/or remedy provided for herein is unlawful or unenforceable,
ORANGE\EHULL\77068.1 10
074
the remainder of this Agreement shall remain in effect and be enforced as if such clause,
provision, right and/or remedy were not contained herein.
3.16 Rules of Construction. The language in all parts of this Agreement shall in all
cases be construed as a whole according to its fair meaning, and not strictly for or against, either
City or Developer. Section headings in this Agreement are for convenience only and are not to
be considered as a part of this Agreement or in any way limiting or amplifying the provisions
hereof. All provisions and any variations thereof shall be deemed to refer to the masculine,
feminine, neuter, singular or plural, as the identification of the person or persons, firm or firms,
corporation or corporations may require.
This Agreement is the product of mutual negotiation and drafting efforts. Accordingly,
the judicial rule of construction that ambiguities in a document are to be construed against the
drafter of that document shall have no application to the interpretation or enforcement of this
Agreement. In any action or proceeding to interpret or enforce this Agreement, the finder of fact
may refer to such extrinsic evidence not directly in conflict with the express terms hereof to .
ascertain and give effect to the intent of the parties to this Agreement.
3.17Execution/Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be an original and all such counterparts together shall constitute
the entire agreement of the parties hereto.
3.18 Authorization. Each individual executing this Agreement hereby represents and
warrants that he or she has the full power and authority to execute this Agreement on behalf of
the named parties.
[Signatures on following pages]
ORANGEIEHULLl77068.1 I I
075
SIGNATURE PAGE TO
REIMBURSEMENT AGREEMENT
CITY OF AZUSA JAR University Commons
a California municipal corporation
By:
City Manager
ATTEST:
City Clerk
APPROVED AS TO LEGAL FORM:
City Attorney
ORANGETHULLU7068.1 12 -
0 / 6
EXHIBIT A
TO REIMBURSEMENT AGREEMENT
Description of
Utility Infrastructure Improvements
[attached]
[Adams Engineering Contract & Near-Cal Construction Contract]
Page 1 of Exhibit"A"
ORANGE\EHULL\37068.1 077
77
FEB 17 1997 21:05 FR TO 16263343163 P.03i19
i
Adams
.EN61WEERI.N+C
April 3,2007
i
John R. Francs
JAR-University Commons LLC
ICO: Andy Tradlman I
Trachman Indavco,LLC !
1801 Century Park East.Salle 1040
Los Angeles,CA 90087
i
RE: Clull Engin *drkg Services for Public Water Main Plane
Foatldll Center-Commemw Roull Caner
Azusa,CA
i
Mr.Francis:
Adams Cansullntg Engineers. Inc. (ACED is pleased to respond to your request for a
proposal (RFMAdams Engines" appreciates being selected to provide these st AN%
congngent upon salisfaclory negotiation of fees. It is nxtuested that we Provide Civil Design
services for the Foothill Center Commercial Retail PmjecL
This proposal incorporates consi&mtlons developed by means of minor interaction with
you arra with the City of Azusa officals. Our mWedence In worrdng with comparable entitles on
marry atter projects has guided our judgment in some aspects or"proposal. rioaeuaf,if any
parBon orNrEs proposal appy e�rarotaoAy eornp�drrsfva arfess 8mft atfegnale far-your rtt�eats
of This ffim we would welcome ft oppoftW to discuss The scope of work and moffify of at
aaowdanw wffir yaurFnsbucaais.
INITIAL CONSIDERATIONS
It is understood Tact the Client will Secure other eonSukaMs to perform the i
boundaryltopographic surveying and geotechnical investiplMn.which survey data and reports
have been pmvhled to ACEI for use as the basis of our design! A preliminary sde plan shall
also been nenished by rhe Client to ACEI.
'Ooccuondly ACII i9 admd to pmvide pl=bend oil wpo c y�,other_ Under this ouotoanx,otr
G�ebth��yr anat bo moitcd Nilo,inme�d moa) dm 6o additional meoi atim�of dnn flea '
pro vid"ed_by Dthaa,r mgmmmd�tD n f ate def&into o�CSA ty a�miaal alto fm t bas he®iadvded
m theeb hada �
i
i
1 Kl
I
078
FEB 17 1997 21:05 FR TO 16263343163 P.04i19
I
tLcls
JAR-Unive�aity Commons,LLC
Foottull Center—Public Water Main Pians
Ap013,2007 Fe e 2
g 2 '
SHORT FORM OF AGREEMENT
i
BETWEEN OWNER AND ENGINEER
FOR
PROFESSIONAL SERVICES
MSISANAGRP.BMdfcforhvc=of Anr03,2009 ("SffeethmDatd)
betwem JAR.Ifatve m cammaos LLC ("Owad7 and
Adams Cowoltt g RUgb a m fM -- C
H .V=tapo &ffieaemmdasmbedbdowtDOrwtxror FOOND GMIW
peeaiptinn of Eagivaar'a 3anaem Pebar Water Main LnTMMeatPlaln•See E.'tldbit A(Attarbedl
Owner and Engineer faQtlter agree as follows:
L01 RokAgmement .
A. E gmwsba0 pmvide,os eaves to be provided,dte sevioer set for&indW Agtatmteat,and Otvaar shell
pay hex for such Savim as set fart&inParsomh 9.01-
2.K PgymstPtoadam
A. P'vpavadm a willPteP au 'iavoioemacooxdapoewi&Erg�+'sstmdeni
mvoicmg proMm and submit the umoim to O m .
B- Pa}vnaet c�L+wteea. lavciaaamdmandpnya&Iawi&iu3Ddeysef=ocipL MOW=foals to maks MM i
p"moot dna Sommeafor sevum and cqmm wi&m 30 days aRerrecaipt ofBngineer's imoice,Bre amamus due
BngiaM will be aoemd at9e nfe of ID%parmeWb(or&e mom®rataof inmost amtrd bylaw.if I=)
fmmmuddade&day. ined&tim.I wrmaY.wi>IioadT tY•aths giving stnev d"Ya writha notimto Orwer,
mVend MrAmwdler tbs Agmmcgt uga Eagmewbo beenpmd zabA all amoulb due for mmms,mom,
a ad otbffmised chap& Paymmswmbecmdih:df=tDi bmztmdihm opbc@el
3.01 Ad&UozmlSftvkft .
A- Ifau&anzadbyOwoer,onfneguredbwmtofdm*csmdwI'MaL Engumor shall fkff s se ms
additim m thm atfwd4 about as dmcigxdinBrI tbit B.
B. owe 4mg pay Bog%w fbr mch addigma;mvi=m follows:if MVmvW inwtitiog by oww.for
additional satviees of Regia employees engaged dimatly mthe Trged an amo®tfytml to B,a c=ubb"
}soma ebmgad to dM Projad by Mh elaa6 of VXtgteeds allploym times standard hourly tales for eachappliable
bmm_ g ahtva;Phu rebabmsabb;atpe mama Hastom's ooastdtmtW chuBts.if any.
i
I
079
FEB 17 1997 21:05 FR TO 16263343163 P.05i19
t
MW
i
i
1
.�y}im I
I'NIId UIR0 I
JAR-univemly Comm0LLC Foolhat Cetlt�et—Puhllc water Main Plam i
08,
April 3.2M7 Azusa,CA I
Page 3
0.01 Termination
A 'She obligatim to provide fimhg services mtdertbo Agrameat may be tam=tcd:
I
1.forme,
By either poly upm 30 days wnmm notice in the evend of substamfid fmlme by the other petty to
perfa�ivaeoarlancewi�fheAgreemmYetgmsthroeghmfauhofOetamioeimgpmty. -
Bye
upon seven,dans wtdtm notice if Engineer believes betPngmem is being re4nestod b)'0"m to j
Runtish Orpmformservicesmu"toBne= empombItiesasaLiomsedprofmionaL0r j
I
Won seven days wntbm notice if ftBogiover's Mvi m for ft FMcdam decayed oravepwdod
for more than 90 days Por reasonsbeymdPryq 'scouts
Engineer 9W have no liability to Owren mae000d of such teamihlat m
Nolwi the forgjIdD&dos Agminucal will not t0rulium as s reach of a mbmeotisl fit7me
under pmWaph 4.01Aln if the party receiving such mli=begs within.saves days of mtmpt of
such notice,to cenect its Marc and ported:dilpxdy to am such failure wmhhnno mase%=30
days of mcaipt of artier—,provided,howmer,flirt if and to the 9*0such m finkiltiel fe>bue c mtot
be reasonably noted wubm such 30 day pound,and if much party has ditcn y at[emp W 10 ewe*0
same and drueeiter contb=diEigmtly to cove the same,then the cure period provided for hemi
sball mated up to,but in no case more than 60 days afterdw date ofreoeiM of tbe untice .
2.foroommieaco,by Owens etfeMmvpmdhe moe pt of noticeby Fngmea.
B. Thetmninadogpmtyunderpstag0pba4-MAlora.0lA2maysettheerecOmdewofftumimtimata
time up to 30 days inlar thm oamwise pawided to am agramar to dam&IMponomej and equipu=aacto0im
Ptgemt sit,to complem maim whose value would othmwme be test,to Fopme notes as to ft Stara:of o0mplered
and tmcompleted tasks,sad to aaeaabk:I�ujcd mudctfalsirtmd¢1y foes.
Sol cgmmlf I"
A. ThisAgrcrmcuti9mbegovmaatbydr.law oftbcaWeinwbkhdwPlojeetisbpdod
601 Suommum Amittm andBauefideries
A. Owner tad rAMeer each ishereby bound end the pm tcm svgs,eaecidors,ad®ahalors,and legal
sapl0samativ0a of Owmtel twdEugmar(nod m fie extcecpmmwd by paragtaplt 6 O1B theaasigae of Owner end
? )mobembybmadtoftadwpulytoOusAgaemtddadt*ftpmtim ,auccesaos eccoatas. .
admimanamq and lagalrepemmodives(and raid amigm)of such attic puny,in teRmet ofall covenandik
apq%que[gs.mid obbodions ofddmApmmffni
i
l
I
080
FED 17 1997 21:06 FR - TO 16263343163 P.06i19
eAdams
J:7tdk'#af.RI7tG
JAR-UnNNSlty Commons,LLC FooUllll Geer—Public WaW Main Plate
Azusa.CA
AprH 3,2097 Pee 4
R. Neilter Owner mor Fm$wAw may sem,mbkL ar trmmderauy spagem inaest(mdaat5a�,but
without imitation,monnys Out am due or may beocma due)in Sus Agreement wimma the wtitma 0008,110:ofthe
other ptceptlamee>dentllmta asstgortuat,m�tlettIIg,mhamafarisman&Worreslvdedbylaw. Unless
i
- wiilreleaseo dtigCAmBe
aapecrfically stated t4 she emzamY m any written consent m m asstgooReos.no assrgm�gd
UASSW from coydutyorresponmb+btyunderitsAgteemaR '.
7.01 GcmvAComidmmfi=
A. The StMWM4 crane for aU xo& amml tap=ing and related cervices padmmd orfwmsW by
Eogioeer w der Omt ApoMMM WM be the care end"ardinmily used by mambas of 20 subjectprofessioo
praetioin8 naakr®malar chcomsbngs at Ste same tmeand inthe same locality.Bogmeaakes mm waaennaes,
exptesa or impE4 miler this Agt*Mcd or othawiW6 irtmooactfm with Bngmadswaysees, EMOarandits
consultants may use or rdy upon tae dengm m sos ofothms kdmaulg.btd aM kiamd to,contractors,
memfteduaa and mpptiels.
H. ED&MM ftV not at my time sapavim direct ofhwe cmt of icer may pmtmlDr s wade,Aur shall
gam have drily ova a resparmbility far the meam,.mWkods,ftAmqwr,mquenc ,or M=ftw of
const actim selected ar used by may oomrector,for Safely preawdons mtdprngmm incident to a contractor's work
ptogess,runt for coy farbne of my caaradar to comply withhws end rego idi mapplitsble to evnhaetes wont.
C. Segiiamm>ber8v m*mthe p afmycankmdarnor UamesfeRnabt7ilyforary
co=ueor's&2hffemto®stiandpat'omits wodtmmc mdamewith&$contracttetaeenOwnerandarch
contactor.
D. 'Evginsm'slaarg raotba respoasrble for Ste actsmomiasiom ofarry em4acmr,subwmacta.or supplier,or
ofayo aacsoraaagmtsorcmployeeaormUothapaems(mmaptma'sownemployees)atmeprgimtsite
orotherwisefWmkmVorperformiugmyofoomsbuc6mwcak;orfarany dccinmvml&an or
cleritcaaama of the otmOtan given by thuuawitRan�mdno and advice oCEngiaeer.
p. 1be gtme[at etmmtiom for any otxiaetuaiiar tximtran doameatap[epmerlhelpmda are m be ffie"gtaderd
General Conditions of the Conehaebon Comma"as PrePmW by the 6vIiams Join Conhact Donmmts
Commiam(No.C-7t7(1,2002 FAitiar}
F. Alldesigadommeadspepm or fdmmgW by B*mmm boanmemtffsavirE,KAU09mmremmsa
nwnwsbipend prapatykamast(including Oscwyrmhtmad dile right 6fretaee)isMach doemranra,mbtd rofx»t
the Project is eoaaplete&
G. To ft West ex=permitted by bm,Owner end ED&W(1)wahm Wumt each other,and%a otbar's
empkyas,offims.directors.agesa�,iffimas,partaess,and tbmaltmie,coy ad all clams ion a eotiOemad to
spacial,mciAmw dram;ar eomea =tW damages mime ad o�rMAting from,or in any way related to aha
Pz*ct,and(2)agree thdPagloea'stotal liability to Owneruoder tbrs Ageemmt ahaU be lrmitad to 550,000 or the
tealww=ofcompenim4anrmmvedbyB whChrmisgreamr.
081
FEB 17 1997 21:06 FR TO 16263343163 P.07i19
i
ktcra'N Y.EarNt3
JAR-Univeretty Commons,LLC Foothill Center—Public WaW Matn Plans
April 3.2007 Azusa.CA
Page 5 .
H Tbepatla tbmlin�aera scope afaeneoa does not include mry aerviaesreletadtaa
Haxardons Eavammadd CcuuLtiau(the ptea®cc of ast>w0o;ItC$i potiokum.lta�dom slrbala�orr weaCY �
aad uuiroutivemataiak).If Boginew ormy other party memmIm a HazmdoosBM&t2mcnW Condiuor4
Engaacr may,at its option and without liability Far oomogom{ml m any olhr dmaagta,auspend pw5atmanoe of
semces on the portiam of the PMed affected thereby QO Owner(i)return appropriate spe=IW consultants or
cont actom to ideatify and,as approptiam,abate. mledktt,or remove the Haaa<doas Emuaaouental Cam blion;and
(ii)wrmants Me fbe Sias is in fall eompl aoce wilt bmLim std Regntetiom.
dal TofdAgermeat
A. This A&ameod(cowating ofpeges l too iuchuiva togdbuwith any c mssly mcarpmatcd appmdo4 .
onnsamtesdeemheaVcmn tbammOwnerandEogiaeaand ellpriorwrittmororal
�- TcisAgraemeat mey Daly h amended,slrppkmena;d,a madifud by a dnniyexecutrd written
insamoeat. �
9101 Payeaeat(AMP 8mrDUfI)
A. Using Ampmoedlra 8etf0nhinperagr2ph20l.0wtmr"pay anfollows'
1. .A Lump Sma amount of S 10.3AN
2. ATimeandlsltladalsarmmttoP�
IN WITNESS WEBRBOF.the pardw hecto have cm=tad Ibis Agm=cK the Efftrdve Datc ofwhioh is
mdmated w pegs 1. .
OWNSB: JAR-University Commons LLC, HNGINIO: AbatsEnpasezzig
a California limited fiaQddy .
camps
J KemdkR kwTi,PE
Tide: Marta�c Tztk: - Ptuied AdIMMc
nate signed: 'Il " a l nam Sigaad: Arm?3,2W7 !
Lic rnw crCaL No.end Slam
C664914Wartda
Addrpa for giving whow Ad&=fmgrviosnot= : .
hacbmenItdevco LLC Am ArdsTradhmm AdamsEpdwx=
1801 Cenhay Pwk But Son 1040 5576 Owens Ava,Ste.200
Las Angela,CA 90047 Carlsbad.CA 92008
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FEB 17 1997 2106 FR TO 16263343163 - P.08/19
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r�k<kivnrarxc
JAR4.1nivrreity Commons.LLC Footfdd Center—Public Water Main Pians
April 3,2007 Pa'e a
{
EXHIBIT A- ENGINEER'S SERVICES
For- Public Water Manu TWOVement Plans
Out proposal and fee estimate for each of the Cortrad items listed above is presented in the
following:
I3A31C g�ltV[t,'�
Wa propose to perform the various srvices listed below that have been requested by the
Client Some of the Contract Items listed are interrelated. and are generally not separable
within this proposal,swept for the purpose of desaftg the scope of work The following NO
the Basle Services Contract items and ed ifaated fees anticipated as necessary forywu proms
1. Project Administration and Coordh atfan
Provide administrative and cleilcal support and coordination with Client(JAR-Universty
Commons,LLC),=This
Coordination uct the pmfexional servim required to manage and coordinate
With sub-eona finis and design ear,as nestled,to rgdrdsie the gems within the scope of this
contract This Awn assumes required between the plank archbct,and design
team sub4onaultants.
JurbAncliorat Requtiements—Ttft dem kwhrdes coordination wah various reviewing and
approving entities.This Aran includes the preparation of permit application data and three(3)
submittals to the CRY of Axusa Light and Waley Department This item assumes three ffwe*,)s
ate required with the City of Azusa Light and Water drfidals to dieouss consiniWon document
(Cd)revisions.
pdsting Utility Conflict Resolution-This dem includes the professional services required to
petiole and survey eMS*Q.LMf1M along the pmpond water main alignment,as nesde4 to
toli to the design of to water main.
FocedFee...................................._-----------------------_--..-........... 515,000.00
2 Waar KUM Plans—CIvU Uestgn Package
Preparation of the detaitsd design of oonatrudm plats for the development,to be reviewed
and considered for approval by the CWd Wild the City of Azusa Light 80 Wter
Department- This Centred Item shag include all design coordirtation with Client, City
aMdels and Surveyor, as needed, and submittal of construction document (CD) plans to
Ctiend for purposes of early lidding and permit subm riaf. The pram will be prepared on 24
inch by 3s-inch (t3sheef) sheaf sae. This item Includes addrea tit all rotated comments
from jurisdictional agencies.Miter Initial perms package is submitted for review.and revising
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JAR4Jnivaay Common,LLC Foothill Center—Public Water Main Plam
April 3,2007 Azusa,CA
Page 7
plan sheets accor"ly. Note this tuft dem assumes that no major sda plan changes
are required after the tnRW permit package has bent submbad for review. Because of the
Nigh level of detail required in the Civil Design Package, a contract amendment will be
required if the Amheeat araor Client d'uetd major sire plan revisions after the ktitlal building
permit package has•been prepared and submitted. The CD plan set shall include the
following sheds:
Cover Sheat—Indudw vicinity map,trey nag tndsr of sheets,general site information. legend,
and neceaeaN txn abuctlon notes required by the City of Azusa L.Ight and Water Department, Los
Angeles County Fire Deperhnent,and CCrerR This dem asaumes 1 shed is required.
Nodes and Deign Shoals-Includes all necessary work related deth0s for instakarmn of the public j
water main, trench detak construction traFfic oonaW, pipe beddkrg. etc. This item assumes 2
studs ane required.
Plan and Profile Plans—Preparation of a dimensioned plan,details and calcwdadorm of the exact j
hyoid of the water main.This ara cipa6es 6 sheets at 20 scale.
Construction TrafficConWffmft Handling Plans=Preparation of nine(g)24x36 sheave al
4p scale, per the City of Azusa Public WottrB Deparbnent and Light and Water Department
requirements, for the cormbudion trait owbnt. There are three (3) locations%trete the naw
water malts or the palet roaderay. each roadway crossing w@ require a phased approach to
mon so that traffic flow s mairdained at all times:therefore, it is articipated thIS Rem will
be eapwated rine(9)phages as described below.
a FenimorelAluda—Connedioh to existing water train north of Alosta Ave.
D Phase 1: Consbudron Traft;e ConaobTratfc harKWQ part for the doskre of
north-eide,wed-bound traffw Imre for the connection of the mater main to to
w&dbV main. It Is ardldpated that this dem wit be ahawn on one(1)shed at 40-
Goals.
• Phase 2: Construction Trafic ConfrWraft handling pan for the closing of
south-side,west bound draft farce and the north-aide eag4xK M traffic lane for
extending the Nader main acraw the sheet It is ashmpated that this Rem will be ;
sham on one(1)street at 404cat— i
D Phase 3: Construction Tadfic CoWoufrathc handling plan for the daft of j
aouUiasid% eW4xnmd haft Gane for the connedien of the water mans to
Fenimore Ave, it is anticipated that this Item will be shown on one(1) sheet at i
40 scale.
• Citrus Avenue Northern Crossing—Connection to existing water main east of Citrus Ave:
D Phase 1: Ommuction TmfAo Confronniffic hand" pan for the dosing of
east-elle, nerbftund tratAc GAne for the connedion of the meter main to the
existing nrabt. It is army pated that.this item wtR be shmm on one(1)sheet at 40-
Some.
Phase 2: Construction Tratfre Contr'oYfratfic handling plan for the closing of
wed-side,north-round taaft lane and the easter south-bound tmfRc lane for
extand"ag the water train agnea Ula Street.ft bl ardfdpatsd that thia mem wall be
shmm on ante(1)shed at404cde.
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FEB 17 1997 21:07 FR TO 16263343163 P.10/19
O Adms
sNGrm O.F05m ,
JAR UnhrersiH Gammons Li C Foathdl Center-Public Water MQ%Flans
Azura,CA
April 3,2007 Pelle
D
phase 3: Canshuction Traffic C NdrOUTraffk handfn�i qan far the closing of
te for
the
pmjed she. it is�oipated that this Romconnection�
win be shovmon one(1) main
ct at r 4G- i
scale.
CWW Avenue Sourhem Crossing-Connectbn to exW&V wilier main east of Citrus Ave:
D Phase 1: C;er4Wxgon Tfafao COr&v frA§c ha KFM plan for the dosing of
east'sifts. t offls- and traffic iahe for the conned ion of the water Main to the
eAstirig main, it is anuelpsted that this Ron will be Shawn on one(1)sheet at 40,
scale.
D Phase 2: Construction Trdit CO*Wrrattie hamdrerg plan for the dosing of
west.de, northbound traffic lane and the east-sqa south-bnund traffic Jane for
eAendim the waW Maar anas,the street R is anticipated thatthis Item will be
shown on one(1)shad at 400cale.
D phase 3: Co tsbuoWn Trefac emrbolrfrAc handling plan for the dosing of
vMd.gids, gouitWx efd trslfic lane for the connection of the Water main to the
project eae. it w articipaW that this Sem wto be shown on one(1)sheet at 40-
srale
FoxedFee......................... ------------------------..--------------........... $88.300.90
3. Elmacai Distribution Design-66 Avenue
preparation of the detailed design of construction plans (by sub-eonsukant) fbr the offsite
design and coordination for the elechxal distribution one from Rookvafe Ave.to the prvj-ecf
site in 5ei Ave.. to be reviewed and considered for approval by the Giant and the CRY of
Axusa Light and Water Department- This Cordran item shall Include all design coord'mation
whh CWM Cdy offaaals and Sury ftW. as needed.and MomtiFal of construction document
(CD) plans to Client for.purposes of party bidding and permit submidal. This item includes
addressing an related comments from jurisdictional agencies, after initial permit package is
submitted for review,and revising plan sheets accordingly- Note this contract Rem assumes
that no major site plan changes are required alter the Initial permit package has been
submitted for review. Because of the high level of detail required In the Civil Design
Package, a contract amendment will be required ti the Architect andfor Client direct major
site plan revisions after the initial building permit package has been prepared and submitted.
Food Fee-Morrow Management.............................................. b9.850.00
provide detailed road SurM (by suh ccg aultent) Of 5e' Ave. between Rocikvale and the
pmjerl site for the design of the electical d131391rtion One,
Fbod Fee-excel Engineering.................................................. 64,008.00 I
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FEB 17 1997 21:0? FR TO 16263343163 P.11i19
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JAR-University Commons,LLC Footidh Center—Public VMer Main Plans
Apdi 3.2007 Amx;� CA i
Pam 9
A. r;nAdminleballm
This Poem riodic coordination with the Archilea Client and contractor to address
sitewo tions adding during bid negotlaflon and const xbW phases; indudes i
up to (a5)site visits for construction coordination mee irgs;also includes attending the i
pre-construction meeting, review of Adework-related shop drawings and/or materials
submittals,and preparation of responsesto Requests For lift., tbn(RFIW). l
This Rem also bxiudes resolution to Issues beyond the preconstruction meeting, changes in
schedule, a need for additional meetings, problems caused by others, and/or unforeseen
conditions discovered during construction will be Invoiced on a time and material basis with 1
pre4pproval of Client. '
Any significant modification to plans or additional design due to construction-related
changes will be billed under supplementai work orders, and are specifically excluded from
the scope of this proposal.
Time and Materials Kee(Not to Exceed)......_.---------------------
5,
--.-.--.----- -_5. Easement Doeareerrts
Preparation of the Plats and Lagar descriptions for the recordation of a water main
easement along ft southern property line between Citrus Avenue and Fenimore Avenue fn
accordance with the City of Azusa Light and Water Departments murent requirements. It Is
assumed ffm me new public water noir in the drive aide In front of the Ross Store and
CVS stare will be bocatad in the existing easement and will not M*re addiftnat easement
document preparation;and therefore,is specifically excluded from this proposal.
Fixed Fee(SxW Engine tg)......................... .. $3,750.00 f
6 Record Drawings
This dem includes the preparation of Record Drawings for submetal to the City or Azusa
based upon any contractor magrps and/or plan revisions which occurred during
construction.
FoodFee................................................................................... $2,750.00
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FEB 17 1997 21:07 FR - TO 16263343163 P.12i19 _
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JAR-UnNltaity Commons,LLC Foolhili Center-Publ1e Water Main Plaint
Azusa.CA
April 3,20W7 Page 10
7. Reimbursables
This item includes the anticipated Coats of reprodudfonk pupping,lab",and mileage.The
following kerns ww be invoiced monthly as the conditions occur. I
• Commercial delivery services, Including Federal Express, UPS, Express Mail, and
messenger services.etc.
• ReproftWn servicaS.
• Automobile Mileage rolmbumment is calculated at the current IRS standard mileage
rate($0.450 per mile)
Time and Materials Fee(Not to t3xeed}...................................
$3,250.00
Exclusions
Any items items Uhat are not spe4ficmiy descn'bed in the Contract items above are excluded from this
contract. AWMainaly the following items aro specific*exduded from this contras:
Storm Water ponut oo Preuerdiorr PerodMog-The preparation of a Water Quality
Vmmgenx"Plan(MMP)or Standard Urban Slomrerder Management Plan(sUSW)is
assumed to not be required for this project and Is OMKKIed from tha contract
ilydrologyMydrsulics Brahma*Report-The preparation of a hydrokW and hydraulics
drainage report is assumed to not be required for obtain"construction pemrds for this prosect
and is excluded from this condad:
Suaeonsuttank;-SubzonsAillart services not deemed aider Beek Services are excluded
riom this Contract
QE ERA!
We WWI proceed wm the work upon mew of a signed copy of-this proposal hftcL Adams
Engineering urKierallands the need to WOOdke preparation of cormbuction documents for these
projects, cwftgeft upon timely mcalpt or all required information (as previously noted). it is
proposed that these swum be performed in accordance with the attached General Condllons �
which are incorporated into and made a part of this proposal. Any additional changes due to a
change in the scope of services vAl require written authorintion before we proceed wdh the
work, and vAH be Mand in acoordance with Adam's Engineering current Rete Schedule or
supplemental contract agreement This proposal shall be valid for a period of 45 days. j
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e
/2 dA,,,
ori'tso�rats uS
JAR-university Commons,LLC Foothill Center-.PutAic Wates Male Glans
Apfil 3,2007 Azusa,CA
Page 11
EXHIBIT B -ADDITIONAL SERVICES
Adams Engineering has been involved with the PMrrrrrirfary design and coordination of this
project therefore, the scope of Services described In this proposal is WAnded to be
comprehensive and describe all the anflcipsted scope to Complete the engineering design as
known at the time of preparation of this proposal However, due to unforeseen discoveries
dudng final plan preparation, field discoveries due to pot-holes and site visits, unforeseen
discoveries during coristrudion activities,additional unforeseen local juixsdi dint regrdreelenfs,
attemative development studies, and change in Project &MCU n requdrett by the diem, may
result in additional services andler additional scope during the course of the project.Therefore,
the following fist Is for Additional SmIese which we can provide In-house or by sub
cons AW upon request
• Stream hydraulics and related FEMA flood studies or floodplain definestlon.
• Storm Water POWIl n Prevention Permitting — The preparation of a WOW Quality
Management Plan (WOMP) or Standard urban 51orrmaater Management Plan
(SUSIVIP).
• Phase I Enybunmental Site Assessmer(L
Jurisdictional Wetlands assessment delineation andfor pennbting_
• Ergirreering forfoundations,or for reteinhrg walls rarer 3 feet high.
•
Off-oft engineering not spedfiraly desnathed in this proposal. incite" surveying,
platting, plan dovetopmet for great improvements, wdending or enlarging sanitary
sewer, water or storm drainage systems, and analyzing or vedWg caPadIY of ofLsite
system(s)as a condition of use.
Engineefing studies not specificaly described in this proposal, including hydrology and
frydrerrfic storm drain studies, sanitary sewer Studies. domestic water MOCKY studies,
Traffit enomee no SerAoes QAtraffic studies,lralfic sig W design,etc).
Extensive coordination not specifically domed in this Proposal between partes(such
as Client, adjacent developers, Contractor, City Cr other Agencies) due to: unclear
development issues, additional unanticipated requirements by local Jurisdictions]
agendas, ambiguous concepts, or necessary decisions (by Client) on abemative
development schamaA of mgjoroPbM
Skudural engineering (r.e special design waits, ft), sews' lift station design, water
pump station design, water pressure and reduchM station design. ftMMater perm*
compliance inspections during construction.
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FEB 17 1997 2108 FR TO 16263343163 P.14i19
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JAR-UrmrerBitY Commons.LlC FOOM Center—Pubk Water Made Plans j
Azusa.CA
April 3,2007Page 12 '
Based on prellmnary reoonneEasanoe Of the pm)W 51110 and surrounding area.ACEI ertticgtates
the f0ftwing addMonaf"Man will be required thr development of the subject site. it is our �
understanding that these services will be provided by ACEI andlar Others under Separate
coMraet(s)with the Nerd;these services are,.therefore,specifically excluded from the scope of
this ptoposat
• Fenimore Awnte Street improvemdtt Pbris-under separate contract with ACEL
• Sitework Improvement flans-under separate OentraEi with ACEI.
• Geotechnical investigation-by t mftdelr(provided to ACEI by client). i
• ALTA Land Ttile Survey-by Excel Engineering under separate contract(provided to
ACEI by client).
• Tentative Tract Map-under separate contiad with ACEI. i
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As mentioned PmWcu y,fes estimates for additional services are not included herein.
AD addisenal fan required by the project will be biped at s cod pursuant to the rates listed in
the attached Rate Schedule, or based on a supplemental agreement after the scope of services
Is more defined and shall bs in accordance wkh the General Condiiiorm The Client wig be
notified prior to conducting any an84rses or inDlsling any armies that would significantly affect
the scope of work.
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JAR-Unive"Commons.LLC Foolhdl Center—Public Wader Main Piens
Aprl13,2007 AZM,CA i
Page 13 i
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200'
SERVICE CODES-&HOURLY RATES
BILLING
STAFF TYPE SCHEDULE
CNII PNGII�2ING: PATES
PI PRMCIPAL 180.OD
P2 SEMORPRRQCIPAL 205.06
P3 ENGDaMK ]TWAT1ON86RVWES) 330.0D
` I
PEl PROFESSIONAL ENCE4EER-1 140.00
PE2 PROFESSIONAL ENGEVEBR-2 150.00
PM PROFESSIONALM GDi=-3 160.00
HRI MROlA61ST-1 135.00
IiHZ BYDROLOGM-2 145.00
HH3 HYDROLOGIST-3 165.0D
E[1 ENGWEEIFL-R4-TRAIND*-1 75.00 .
MZ FN0VQ5AbA4-TRAR4M-2 - MOD
ED ENGUPM-W-TRAIIM40-3 9D.00
E14 ENGII4 M-W-TRAIIMO-4 100.00 �.
r
Dl ENGDOMPI 4G DH.41GN[R-1 75.00
D2 ENGDEUM 4GDMONIR-2 ROAD
D3 ENG040BRINGDEMGNER-3 45.00 j
D4 I NG24EEMNO DBS GM-4 90.00
DS E46DMERII40 DESIGNER-5 - 95.00 !
I
PMI PROEM MANAGER-1 125.00 '
i
PM2 PROISM MANAM-2 130.00
PM3 PROIECI MANAGER-3 140.00
PM PROEM MANAGLR-4 170.00
PMS PROEM MANAGER-5(LIIIGAIIONMRVICES) 220.00 I
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FEB 17 1997 21:09 FR TO 16263343163 P.16/19 ,
OA�s
JAR-urriversicy Commos,LLC FOOM Center—PUb#c Met Mem dans i
April 3,2007 AzusA CAj
4 I
SF.RWU CODES & HOURLY RATES CONT.
LAI LANDSCAPBARCFXrBCT-I 105.00 i
LA2 LANDSCAPE ARCENTTECT-2 _ 1 150 i
LA3 SENIOR LANDSCAPE ARCHITECT 120.00
LD1 LAM)sCAPEDESIGNER-1 70.00
LD2 I.ANpSCAPE DESIGNER-2 R5.00
ENVIRONMENTAL ENGINIMRIM: .
EEl ENVIRONMENTAL M4GOMER-1 130110
EE2 ENVIRONIvWT1'AI,ENGINEER-2 140.00 .
EB3 BNVRRONMENTALENGINEER-3 170.00
POI PROFESSrONAL GBMClIITi[3C-1 130.00
PG2 MOFESSIONAL0004 MMErr-2 140.00
ESI PNVIROMMALSPECIALRST-1 75.00 .
ES2 ENVMON&MTAI.SPECIALIST-2 90.00
OTHER:
. PA FROIECTASSISTANT - 65.00
PL PLANNER 90.00
PST POLITICAL CONSULTANT 225.00
CM1 CONSTRUCTION MANAGER 125.00
SSC SITE SLB IION CONSULTANT
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FEB 17 1997 21:09 -FR TO 16263343163 P.17i19
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ADtI1P.M1)rIM TO ACl_ZGRM7tNT RErW£Ti.N OWNER AND
MgMEER WATER MAIN
- i
This Addendum to Agreement Betweert Owner and EngirteerWater Main("Addendum)is
attached to and made a part of that certain Short Form of Agreement Between Owner and
Eng new-Sitework("Agreement")dated as of February 23 2007 by and between JAR-University
Commons,ILLC("Owner"} and Adams Consulting Engmeeas4 Inc.("8ngineel,and modifies
the Agreement as fbHows:
1. AMliations for Pa"Ient In order to receive payments hereunder,
Engineer shall submit an Application for Payment on a monthly basis during the term of the
Agreement. Each Application for Payment shall be in a form reasonably acceptable to Owner
and shall set forth in reasonable detail (a) the services rendered, (b) the speck personnel
involved, (c) the applicable hourly rates d argad by Engineer for such personnel, (d) the
estimated percentage of completion of the Work, and (e) the charges for any reimbursable
expenses incurred in such calendar month. Notwithstanding anything to the contrary contained
herein, Owner shall not be obligated to make any payment to Engineer if any one or more of the
fallowing conditions exist; (i) Engineer's material delimit of any of its obligations under this
Agreement, (i) any part of such payment is attributable to services which have not bean
performed in accordance with this Agreement, or(nil Engineer has failed to make any payments
promptly to consultants or other third parties used in connection with the services for which
Owner has made payment to Engineer Invoices not paid within thirty(30)days of due date are
subject to interest charges of eight percent(80/6)per annum.
2. R -#aiQng and Wrprigl Natwitds> ding anything to the
contrary in the Agreement, Engineer acdmowledges and agrees that Owner is entering into the
Agreement in reliance on EvShneer's special and unique abilities with respect,to peaformiing its
services. In connection with the foregoing Engineer represents and warrants the following to the
Owner(in addition to any other representations and warraobes contained in the Agreement)as an
inducement to the Owner to execute rte the Agreement,which repmsentations and warranties shall
survive the execution and delivery of the Agmement,and the final completion of the Project:
2.1 From the inception of this Projekt until its completion,the services
performed by Engineer shall be of the standard and quality which prevail among Engineers of
competent knowledge and skill who provide Engineering services throughout Southern
California under the same or similar circummm-
2.2 The Services will be accurate and free from any material errors.
2.3 That Engineer is authorized to do business in the State of
California and properly licensed and registered by all necessary governmental and public and
quasi-public authorities having jurisdiction over it and over the services to be pe rfi med by
Engineer pursuant to this Agreement.
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FEB 17 1997 2109 FR TO 16263343163 P.18i19
2.4 That Engineer's execution of this Agreement and its performance
hereunder is within its duly authorized power.
2.5 That Engineer's Project Rclamsentative has visited the site of the
Project and is familiar with the local and Special conditions applicable to the Project.
The foregoing warranties are in addition to,and not in lieu of any, and all
other liability imposed upon Engineer by law with reaped to Engineers duties, obligations and
performance hereunder and shall survive any termination of the Agreement and final completion
of the Project. Engineer aolmowledges that the Owner is relying upon Engineer's sts;ll and
experience in connection with the Project
3. ftpgft of Owner. Nawithstanding anything in the Agreement to the
contrary, all plans and otber design documents prepared by the Engineer and its subconsultants,
and the designs depicted in them, and any presentation materials, sball become upon their
creation the property of Owner, whether the Project is completed or not Without limitation to
the foregoing, Owner shall bold, and Engineer shag be deemed to have irrevocably assigned to
Owner in perpetuity with no reserved or retained rights to Engineer or to any other persons or
cooties, all copyrights to the design documents, and the designs depicted therein. The Owner
hereby grants to Engineer and its subconwItants a liccnse, revocable at will of Owner's
discretion,to use and copy the design documents, and the designs depicted in them, during the
term of this Agreement for the sole purpose of perfmming the services required under this
Agreement Owner shall indemnify and hold harmless the Engineer against all losses arising
from Owner's modification of the design documents without Engineer's consent.
4. Arbitration. Any claim, dispute or other matter in question arising out of
or related to this Agreement shall be subject to arbitrattion.
4.1 Claims, disputes and other matters in question between the parties
that ate not resolved by mutually agreed upon mediatton(with no obligation to do so) shall be
decided by arbitration which,unless the parties mutually agree otherwise, shall be in accordance
with the Construction Industry Arbitration Rules of the American Arbitration Association
currently in effect. The demand for arbitration shat! be filed in writing with the other party to
this Agreement and with the American Arbitration Association.
4.3 A demand for arbitration shall be made within a reasonable time
after the claim, dispute or other matter in question has arisen- In no event shall the demand for
arbitration be made after the date when institution of legal or equitable prooeedluga based on
such claim, dispute or other matter in question would be barred by the applicable statute of
limitations.
4.4 The award rendered by the arbitrator or arbitrators shall be final.
and the judgment may be entered upon it in accordance with applicable law in any court having .
jurisdiction thereof
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I
5.1 ring anything in Section 101G(2)ofthe Agreement to
the contrary, to the fidlest rodent permitted by law, Engineer shall indemnify, defend and hold
barmhess owner, and its partners, directors, offices, agents, employees, representatives and
insurers (Udemuitee(s)-), utilizing legal counsel reasonably acceptable to Owner, from and
against nay and all claims, damages, losses and expenses(including, without limitation, all fees
and expenses of engineers,Engineers, attatneys, pmalegaK experts and all court,arbitration or j
ocher dispute negohution costs which arise out of or result from arty ofthe following:
(a) Any negligent act or omission of Engineer,
(b) The material inaccuracy of any represeatation by Engineer given in
accordance with or contained in this Agr eemem;or
(c) Any claim of loss by any third parent or entity against any
Indemniteearising out of any allied or actual negligent act or omission of]3trgineer.
5.2 Engineer shall prom v and maintain, at its cost and expense, such
insurance of the types and in the amamts customarily provided by professionals similar to
Engineer in connection with comp;Gable projects and as reasonably requested by Owner.
6. Aggmeymees. 1f any legal action,arbitration or other legal proceeding is
brought in Connection with or related to the interpretation, performance or enforcement of this
At em, the lig ley therein sbaU be entitled to recover from the other party the
psemheg party's actual costs,expenses and attorneys'fees,including- The determination of the
"prevailing party" shall be based upon the arbitratces determination of the party who prevails
upon the matters actually litigated or arbitrated and shall not be determined solely based on the
patty receiving a net monetary recovery_
i
7. I&MM Reaa'vemelgI Engmea agrees to reasonably cooperate with the
Owner in complying with,to the wdeat consistent with commercially reasonable practices,those
provisions, requirements and conditions of any loan agreements between Owner and its lender
for the Project (including, without limitation, any and all information, reports, certificates, and
inmrrancp coverages which may be required by such tender), to subordinate the rights of i
Engineer to the security interests of such lender, and to permit the assignment of this Agreement
to tender,all on such terms as may be reasonably required by such lender.
8. Inconsistencies. To the extent of any inconsistencies between the terms
and conditions of this Addendum and the Agreement,the applicable terms and conditions of this
Addendum shall prevail in all respeds
094
**
TOTAL PRGE.19 **
r
AVWC - I
�p Fri
AZUSA
rnr � merry
ELECTION OF OFFICERS
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA VALLEY WATER
COMPANY
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 25, 2007
SUBJECT: ELECTION OF AZUSA VALLEY WATER COMPANY OFFICERS
RECOMMENDATION
It is recommended that the City Council, acting as the Board of Directors of the Azusa Valley Water
Company (AVWC) as set forth in resolution 05-P5, adopt the attached resolution which appoints
persons in the following positions to serve as Officers of the AVWC:
Position AVWC Officer
Mayor President
Director of Utilities Chief Operations Officer
City Clerk Secretary
City Treasurer Treasurer
BACKGROUND
In 1993, the City of Azusa purchased the Azusa Valley Water Company (AVWC) through the Azusa
Public Finance Authority, a joint powers authority set up by the City to issue debt for public purpose
projects. Acquisition of the AVWC itself proved to be a good public investment for Azusa since
'AVWC helped establish an economy of scale for water utility services that continues to help keep
water rates very low compared to surrounding water utilities.
Since AVWC is a separate legal entity for financial reporting purposes and holds title to various
properties outside of Azusa, sometimes action must be taken in approving documents or
transactions on behalf of AVWC. Toward this end, AVWC has its own Board of Directors which is the
City Council pursuant to resolution 05-P5 of the Azusa Public Finance Authority. The term of each .
Board member is co-terminus with each member's term as a City Council member. Because of the
election of new City Council members, it is important to appoint new officers of the AVWC.
095
To avoid the need to update the list of officers following each election, it is suggested that the Board
of Directors adopt the attached resolution making the appointments by position title rather than
personal name, and make the officer terms co-terminus with the term of the filled position.
FISCAL IMPACT
There is no fiscal impact of appointing officers for the Azusa Valley Water Company.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Reso Apptg
Off cers.doc
096
t
To avoid the need to update the list of officers following each election, it is suggested that the Board
of Directors adopt the attached resolution making the appointments by position title rather than
personal name, and make the officer terms co-terminus with the term of the filled position.
FISCAL IMPACT
There is no fiscal impact of appointing officers for the Azusa Valley Water Company.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Reso Apptg
Oficers.doc
0.97
RESOLUTION NO.
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
AZUSA VALLEY WATER COMPANY, TO APPOINT
OFFICERS, PURSUANT TO ITS AMENDED AND RESTATED
BYLAWS ADOPTED ON DECEMBER 5, 2005.
WHEREAS, on December 5, 2005, the Azusa Public Finance Authority met at a publicly
noticed meeting held at 213 East Foothill Boulevard, Azusa, California; and
WHEREAS, the Azusa Public Finance Authority ("Authority") is the sole member of the
Azusa Valley Water Company ("Corporation"); and
WHEREAS, on December 5, 2005, the Authority adopted Resolution 05-P5 directing that
the City Council act as the Board of Directors of the Corporation; and
WHEREAS; Section 5.01 of the Authority-approved Bylaws for the Corporation delegate
responsibility to the Board of Directors of the Corporation to appoint Officers of the
Corporation;
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE CORPORATION, DO
FIND AND DECLARE THAT:
SECTION 1: Appointment of Officers. Persons serving in the following positions are
hereby appointed as the Corporation's officers:
City Position Corporation Officer
Mayor President
Director of Utilities Chief Operations Officer
City Clerk Secretary
City Treasurer Treasurer
SECTION 2: Term of Officers. Officer terms shall be co-terminus for the person
holding the named City position; if a City position becomes vacant, the person acting in the
capacity of the named position shall be deemed the designated Officer of the Corporation.
SECTION 3. Effective Date. This Resolution shall become effective upon its adoption.
SECTION 5. Authorization. The President shall sign and the Secretary shall certify to
the passage and adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 25th day of June, 2007.
Joe Rocha, President
1598
ATTEST:
Vera Mendoza, Secretary
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney
I HEREBY CERTIFY that the foregoing Resolution No. 07- was duly adopted by
the Azusa Valley Water Company, at a regular meeting thereof, held on the 25th day of June, 2007
by the following vote of the Board.
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Vera Mendoza, Secretary
099
C--
EM,N- 0-MITOW
AWSA y
IIGNT . WAIER
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 25, 2007
SUBJECT: ADOPTION OF LEGISLATIVE POSITIONS
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council adopt the legislative positions
attached to this report and authorize the Mayor to sign letters addressed to legislators as may
be required during the remainder of legislative session to advocate the adopted positions.
BACKGROUND
The State legislative session begins in January and concludes in September. During the first
part of the session, our affiliate associations, such as the California Municipal Utilities
Association (CMUA) and Southern California Public Power Authority (SCPPA), review the bills
introduced and highlight those bills that may be of interest to their municipal utility members.
The CMUA and SCPPA Legislative Committees then take positions on various bills, and our
Associations together with its members, proceed to contact the State Legislature to advocate
the adopted positions. To authorize Azusa staff and the Mayor to advocate the same
positions adopted by our affiliate associations, staff recommends that the Utility Board/City
Council adopt the positions as set forth in the attachment to this report, for the respective bill
listing, and authorize the Mayor to sign legislative letters to advocate the adopted positions
during the remainder of the legislative session.
FISCAL IMPACT
Expenses associated with adoption of attached position listing include letter preparation,
mailing expenses and telephone calls to our State representative's office. If some of these
bills were to become law, such as SB 1020, the fiscal impact on the utility and/or its
ratepayers could be substantial--in the hundreds of thousands of dollars annually.
Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities
100
SELECTED LEGISLATIVE POSITIONS
FOLLOWING POSITIONS FROM CALIFORNIA MUNICIPAL
UTILITIES ASSOCIATION (CMUA)
CA AB 662 Water Conservation 611912007.
Ruskin (D) Provides that the standards for minimum levels of operating In SENATE.Referred
efficiency for appliances be based on feasible and attainable and er mUtilities
unications
efficiencies, or other feasible improved efficiencies that will Committee.
reduce the energy or water consumption growth rates and that
do not result in any added total costs over the designed life of
the appliances concerned.
POSITION: SUPPORT
CA AB 785 Energy Efficiency Measures 6/1912007
Hancock (D) Requires the Contractor's State License Board, in order to In SENATE. Referred
mitigate the urban heat island effect, to take proactive to Business,
Professions,and
enforcement action against a contractor for failure to properly Economic
obtain building permits and for failure to comply with specified Development
building efficiency standards. Requires the board to report to Committee.
the Legislature on the status of both the compliance and
noncompliance of contractors with the building efficiency
standards. Provides for a related task force. Requires a report
on specified paints.
POSITION: SUPPORT
CA AB 809 Energy: Renewable Energy Resources 6/19/2007
Blakeslee (R) Provides that the incremental increase in the amount of In SENATE. Referred
electricity generated from a hydroelectric generation facilityas to Energy,Utilities .
and Communications
a result of efficiency improvements at the facility is electricity Committee.
from an eligible renewable energy resource, without regard to
the electrical output of the facility, if the increase is the result
of such improvements from a retrofit that do not'result in a
new or increased appropriation of diversion of water from a
watercourse, and a water quality exemption has been
received.
POSITION: SUPPORT
CA AB 1260 Local Government Taxes, Fees,Assessments: Changes 611912007
Caballero (D) Authorizes the local agency providing the property-related In SENATE.
service to a parcel to provide the required notice of a Referred to Senate
p p q Loral Government
proposed increase of an existing fee or charge in the agency's Committee.
regular billing statement or any other mailing by the agency to
the address at which the agency customarily mails the billing
statement for a fee or charge. Authorizes the agency to
provide the required notice of a proposed new fee or charged
to be mailed to the address where the service will be provided.
POSITION: SUPPORT
101
CA SB 410 Energy: Renewable Energy Resources 6/19/2007
SimitianD Relates to allocations for electrics generated an in-state In ASSEMBLY.
( ) electricity g td b Y Referred to
renewable electricity generation facility and the evaluation of Committee on
existing energy facilities seeking awards from the Existing Utilities and
Commerce,and
Renewable Resource Account. States the intent of the Natural Resources
Legislature to preserve the eligibility of electricity generated by Committee.
a small hydroelectric generation facility that is sold to a retail
seller, including electricity sold to a local publicly-owned
electric utility, to meet the renewable portfolio standard.
POSITION: SUPPORT
CA SB 699 Developer Fees: Water Rights and Supply 6/19/2007:
Ducheny (D) Relates to the Mitigation Fee Act. Redefines capacity charge in In ASSEMBLY.
Referred to
the act to mean a charge for public facilities in existence at the Assembly Local
time a charge is imposed or charges for new public facilities to, Government
be acquired or constructed in the future that are of Committee.
proportional benefit to the person or property being charged,
including supply or capacity contracts for rights and
entitlements, real property interests, and entitlements and
other rights of the local agency involving related expense for
use of facilities.
POSITION: SUPPORT
CA SB 980 Energy: Integrated Energy Policy Report
ns/sow
Padilla D Relates to an integrated energy policy report. Requires the In :
Assembly.
State Energy Resources Conservation and Developrnent Referred to
Commission, as part of the integrated energy policy report, to Assembly Utilities
and Commerce
evaluate the adequacy of the electrical system of each local Committee.
publicly owned electric utility in the state pursuant to specified
requirements.
POSITION: OPPOSE
FOLLOWING POSITION FROM LOS ANGELES COUNTY
SOLID WASTE MANAGEMENT COMMITTEMNTEGRATED
WASTE MANAGEMENT TASK FORCE
CA SB 1020 Solid Waste: Increases Waste Division Requirement 6/19/2007
Padilla (D) Relates to the California Integrated Waste ManagementAct of In Assembly.
( ) Referred to
1989, better known as AB 939 —the State's recycling Assembly Natural
mandate. AB 939 required cities and counties to divert 50% of Resources
Committee.
solid waste from landfills by the year 2000. This bill would
increase the waste diversion requirement to 75% effective
2012.
POSITION: OPPOSE
102
MONTHLY REPORT
JUNE,2007
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
CHANGE ORDERS TO DATE: $0.00 `
MONTHLY ACTIVITIES Construction progress meetings were held April 26 and May 10
As of 6/18/2007
Under piping for the Reservoir is placed
Pretreatment Building drain pump station wetwell has been formed and poured. tuft%
Building Permit has not yet been granted
Subwalls and tank pedestals for the Chemical Feed Building have been poured and stripped
Walls of channel diversion structure have been poured and stripped
Southern California Edison easement accepted and pole relocation has been scheduled
MAY PROGRESS
PAYMENT REQUEST: $1,365,275.80
TOTAL PAID TO DATE $5,411,752.33
AMOUNT TO ESCROW $541,175.23
PROJECT PERCENT COMPLETE 15.07%
k.+
W
s -
14 h �.
A7SLIGHT & TA
ER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 25, 2007
SUBJECT: ANNUAL ADJUSTMENT OF REPLACEMENT WATER COST ADJUSTMENT FACTOR
The existing water rates for the Azusa Water Utility include an annual adjustment factor called
the "Replacement Water Cost Adjustment Factor (RWCAF)." This adjustment factor was
implemented following the severe drought that occurred around 1990. The drought forced
the Watermaster to set the Operating Safe Yield in the San Gabriel Basin very low, which in
turn increased our replacement water costs far above those normally anticipated in a so-
called normal water year.
In 1992, the City Council adopted a rate methodology which included a RWCAF, which was
incorporated into the City's regular water tariff. This resulted from a water rate review in
which the replacement water cost component was analyzed separately. The adjustment
factor that the City Council adopted, and which was recommended by staff, is similar to the
Fuel Cost Adjustment Factor for electricity that was first introduced in the 1970's during the oil
embargo when energy costs fluctuated regularly due to the unpredictable oil supply and costs.
The RWCAF, by tariff adopted in 1992, shall be reviewed annually and adjusted accordingly.
Whenever an adjustment is required, the Director of Utilities shall inform the Utility Board/City
Council. By this memorandum, I am providing notice that because Watermaster has, for Fiscal
Year 2007-2008, set the Operating Safe Yield of the Main San Gabriel Basin at 210,000 acre-
feet from 240,000 acre-feet in FY 2006-2007, the purchase of replacement water will be
necessary. Therefore, the RWCAF will be adjusted to $.1306 for FY 2007-2008 from $0.05
charged in FY 2006-2007. The RWCAF will be increased to $.1306 effective July 1, 2007.
Again, the Operating Safe Yield as established by the Main San Gabriel Basin Watermaster for
FY 2007-2008 is 210,000 acre-feet, downward from 240,000 acre-feet last year in FY 2006-
2007.
Please call me if you have questions.
Prepared by:
Chet Anderson, Assistant Director- Water Operations
104
o r �
-3
RM
AZUSA
rn, � weer•
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 25, 2007
SUBJECT: DROUGHT INFORMATION
Following Steps have been taken to encourage water conservation and compliance with the
Stage 1 Drought requirements:
1. A mailer was prepared and mailed to all water customers in the service territory.
2. Staff met with representatives of the San Gabriel Valley Tribune who prepared the
attached article on the drought.
3. A letter was sent out to City Managers in our service territory encouraging them to
implement water conservation practices.
4. A meeting was held with key City staff to coordinate Stage I drought enforcement
activities. These will initially include direct contact with those who violate water
conservation requirements to inform them about the drought and win voluntary
compliance: repeat offenders may be provided with a citation which we have printed
and are prepared to issue.
In addition, LB.W along with Covina Irrigating Company are making arrangements to buy
untreated water from Metropolitan Water District at Agricultural Water Rate beginning in July
to provide additional source of water to meet system demand.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
�i
Tribune-Water
Suppy.p&
105
SANc
GABRIEL . u.B
vALLEY _
TRI
Monday, lune 11, 2007 www.sgvtribune.com
Wa
ter es
Azusa advising "' {
residents about
conservation
BY BEITMM PALMA
AZUSA — The water in the Te{ 'a•. "�qr• „l,r' ,
ditch that runs to the two lakes just
north of Sierra Madre Avenue m'
several feet lower than normal,
and officials'say that indicates the
city's water supply is in trouble.
That's why Azusans have been
sent fliers outlining water comer- Fpl
vation measures,said city spokes- 2,rr
man Martin Quim& Activities + II"
such as letting water flow freely
onto sidewalks and into gutters ` ` +
and watering lawns outside of ape- .�
cific,evening hours could result mi r
fines of up to 5200. pa- -
Quiroz also recommended resi-
dents voluntarily take shorter
showers,use a bucket instead of a PHOTOS 9Y RAUL HOA 1 STAFF
hose to wash care and avoid doing DROUGHT HITS HOME Joseph Hsu,director of Azusa Light and Water,above,talks about the construman on a new
small loads of laundry. water treatment plant at the north end of Azusa on Highway 39.Below,water Imre Morris Dam in the San Gabriel
The North and South lakes,just Mountalm north of Azusa trickles at a rate of two cubic-feel per second Into Azusa's aquifer-recharging Horth Lake.
beyond Azusa Greens Country Water levels at the lake have dipped to record low levels.
Club's golf course,supply most of ,
the city's water.Joseph Hsu,direc- A am,a main source of water is into the lakes from the San Gabriel straight from it."
for of Azusa Light and Water,said smaller and more local than other and Morris dams in the mountains. The trade-off, he said, is that
he hasn't seen them this low in his San Gabriel Valley cities, it's The lake water percolates through other Valley cities'water supplies
25 years of service. more vulnerable to droughts. the ground into aquifers, under- we"not as fragile and don't fluctu--
'•With normal rainfall,"he said, round rock Incautious that hold ale as quickly"as Azusa's. .
While other cities drew water g
we have no problem." from the Main San Gabriel Bazin, it until it's drawn into reurvoirs. Compounding Azuhave s wori ed
HW officials ere calling this yea Hsu state officials have prohibited
the driest in history for the region, Hca said Azusa officials opted for "This is the beat aquifer, Hsu pumping from the Sacu-
.their own, cleaner source at the said.'"There is no industry and the
which only go[about four inches base of the Foothills. mrnto-San Joaquin Delta,a major
of rain, far from the bemuse water quality is very good. itis
18-inch rainfall. And because He explained that water flows pristine. You could just drink %ease tum to DROUGHT/Page e
.c'r4 -S cal�• W fi+�'ty�auir
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Power Resources Division Monthly Report
■ Power Resource Update
■ Power Consumption Comparison
■ Wholesale Market Trend
■ Power Resource Budget Update
■ San Juan Environmental Project Implementation Update
(San Juan environmental project construction pictures in separate.file)
co0
Power Resource Update
■ Implementing the internal processes and procedures to comply
with North America Electric Reliability Council (NERC) mandatory
reliability requirements by June 18th (separate update is provided
to Utility Board)
■ Continued negotiations with Metropolitan Water District (MWD)
and Garnet Wind for renewable resources purchases.
Negotiations are entering into final stages and will be concluded
in the next few weeks. Management and Utility Board approval
process is expected in the next two months
■ Completing the 2008 and 2009 Resource Adequacy planning and
procurement (separate agenda items for approval by Utility Board
included in this month's package)
■ Continuing retail rate studies. Preliminary presentation to the
Utility Board of possible electric rate adjustment is scheduled for
the July Utility Board meeting
■ Continuing contract negotiation with the City of Riverside for the
scheduling services agreement
■ Continuing the preparation for the CAISO new market structure to
begin early 2008
■ Actively participating in the ongoing debate on Greenhouse Gas
issues in the regulatory forum
■ Engaged in the oversight of San Juan environmental project
0
implementation
CITY OF AZUSA ENERGY CONSUMPTION COMPARISON
ENERGY CONSUMPTION IN MWH PERCENT
MONTH FY 05.06 FY 06-07 CHANGE
JUL 25,839 29,287 13.34%
AUG 26,758 25,912 -3.16%
SEP 22,725 24,379 7.280/0
OCT 21,746 " 21,700 -0.21%
NOV 19,942 20,456 2.580/6
DEC 20,163 20,510 1.72%
JAN 20,070 20,984 4.55%
FEB 18,397 18,414• 0.090/0
MAR 20,326 20,916 2.90%
APR 18,610 19,71.9 5.96%
MAY 21,021 21,064 020%
JUN 24,585. _ -100.00% -. .
TOTAL 260,184 243,341 3.20%
CITY OF AZUSA PEAK DEMAND COMPARISON
I i
..,,._PERCENT
MONTH FY 05-06 FY 06-07 CHANGE i
JUL 57.4 60.85.78%
AUG ! 57.9 55.2..._ . -4.66%
SEP 54.9 , 63.7 16.00%
_.
OCT j 48.0 43.9 8.41
_.
NOV41.1 46.0 11.81%°
DEC E 36.2 36.6 1.19%
JAN 34.8 36.8 5.83%
FEB 37.1 37_4 0.91%°
�- -
MAR j 35.8 42.8 19.40%
APR 35.9 40.7 13.27% j
MAY 45.248.3 6.98%
JUN 59.1 -100.00%
PEAK DEMAND IN MW
O
WHOLESALE ELECTRICITY SPOT MARKET
PRICES IN CALIFORNIA
AVERAGE AVERAGE
__ .. ., _
MONTH ON PEAK PRICE OFF PEAK PRICE
APR06 ?. $49.04 $32.41
MAY 06 $48.92 $26.27
JUN 06 . ._ _.. $59.52 $30 03
JUL 06 $83.86. $43.66-1-
AU—G
4366 .AUG 06._. . .. _.. _._ $63.02
SEP 06 $43.70 $31 .36 ---
OCT 06 J _.._ $47.68 $35.03 .. _
NOV 06 $53.55 $41 .34
DEC 06 !-- . $53.75 $44.63
JAN 07 $53.46 $44.36
FEB 07 ._ ._ �. $58.45 _.. 47.79
MAR 07 $49.82_---- - ._..�._._ ..__. ._ _... _
APR 07 $57.29 $43.1.2
MAY 07 i. ._ . $63.55 $41 .24 ....
P
ALL PRICES IN $/MWH
h-�
F-*
e�
J
Power Resource Cost Accounting
FY '06-07'
----- -.. 1--•r: ..s-[�..�'!4 °-f'`s-..irl�c..r-r`�-..,--9�. 1-9�s.<--1'�c..i^!�.:.. mss. "�-.
-Z
(1) T! (2 .�(3) (4) (5) .�.,_ (8) I (7)...._... (8)
)
_ LONGTERM SHORT TERM TRANSMISSION' ANCILLARY SCHEDULING TOTAL _ t WHOLESALE NET
--- --
MONTH I CONTRACTS PURCHASES COSTS SER COSTS ! DISPATCHING COSTS COSTS —REVENUES COSTS
Jul-061,182,751.52 ! 2,378,695.35 ' 267,058.45 i 69,662.48 28,154.75 3,926,322.55 (1,972,714.63) 1,953,607.92
g-06 - 1,174,610.23J{- 1,943,359.23 _ 250,816.511 14,847.26��T�--26,929.38 3,410 562 61 — (1,804,751.85) 1,605,810.76
1
Sep-06 i 1,185.734.80 ' 860,837.92 I 251,071.63--r-11,200.43 — 26,45624 3,335,301.02 (1,652,451.36) 1,682,849.661
_
�Oct-06 1,173,599.19 1,527,90427 , 238,578.37 ! 7,023.95 , 23,240.14 _ 2,970,345.92 ---(1,243,204.41) 1,727,141
Nov06 - 1,23772438 1501,758.16 i 227220.87 r 7,391.25 22,975.56 2,99707022 (1,291,751.32) 1,705,318.90
Dec-06 __ 1,17716916 1,395550.02 235648.20 7,66106 21,646.11 2,83767455 (1,439,28343) 1,398,391.12
r - --- --- 5 - ---- _ - - --
Jan-07 1,179314051 841 891.59 j 23471274 7,798.02 22,350.30 r 2,28606670 (859,428.31) 1,426,638.39
Feb-07 1,096 747 64 597 410.554 226,89 41 5,174.30 21,065.50 I-rr-- 1,947 296 39 (672,063.51) 1,275,232.88
Mar 07 _ 1,14877755 565,365.56 234126.87 9,962.26 23,604.77 ' 1,981 837.01 (701,260.92) 1,280,576.09
_ Apr 07 X1,175,394.04— 734,613. __237,778.37 t— 20,000.00 ! 35,319.39 —_ 2,203,105.38 I (895,422.75) 1,307,682.63
� -- 21 --....._...—.,.____.--
! May07 1,176,989.58 1,504,852.40 ! 237,778.37 , 20,000.0 ---35,328.86 2,974,949.21 (1,243,377.50) 1,731,571.71
I Junes— - — —j- I 0.00
i _TOTAL $12,908,812.14 $14,852,238.62 1 $2,641,688.79 ! $180,721.01 $287,071.00 $30,870,531.56 ($13,775,709.99)1 $17,094,821.57
' (1) ,INCLUDES SCPPA LONG TERM CONTRACTS ! _
INCLUDES ALL SHORT TERM PURCHASES FOR HEDGING,LOAD BALANCING PURPOSES,RAR CAPACITY I
�— (3INCLUDESALL SHORT TERM AND LONG TRANSMISSION CONTRACT COSTS i
-_(4) _COSTS CHARGED 13Y CALIFORNIA INDEPENDENT SYSTEM OPERATOR FOR SYSTEM RELIABILITY FUNCTIONS
(5) INNCLUDES COSTS FOR SCHEDULING AND DISPATCHING OF ELECTRICITY J— -------! — rt— i
(6) _J SUM OF(1)THROUGH(5) —
! (7) IWHOLESALE REVENUES DERIVED FROM SALES OF EXCESS POWER+PTO BENEFITS
(8) DIFFERENCE OF(6)AND(7).
N
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San Juan Environmental Proiect
Implementation Update :
Staff went to Albuquerque for the special San Juan Coordinating meeting on
June 5th to discuss the environment project implementation. The findings are as
follow:
■ PNM seems to have a good handle of the project, and the project continues to be on.
schedule
■ There continues to be soft spots in the cost structure, specially the variable labor costs.
Boilermaker contract is up for renewal in September and the project faces substantial
labor challenges toward the end of this year as major maintenance outages in the
vicinity will strain the skilled labor market in the next few months
■ There is some deficiency in the coordination of environmental project and San Juan
units 3 and 4 major outages later this year and early next year. PNM does not have
dedicated staff that oversees and provides overall coordination for both projects. The
concern is obvious and PNM acknowledged the problem and is in the process of
addressing this deficiency
■ One key PNM staff for the environmental project and PNM's senior management is
undergoing substantial shakeout. The impact of the management shakeout is unclear
but definitely requires close monitoring
Overall, staff gives PNM a passing grade in project management but with
obvious room for improvement in short order to ensure successful project
completion. Staff intends to continue close monitoring of the project
implementation to ensure successful project completion
r
N
w
Implementation of Scheduling Services Agreement
with Riverside
Project Update
■ Staff is continuing to negotiate with Riverside on Scheduling Services
Agreement. The monthly service charge is expected to be lower than
originally negotiated
■ Staff is continuing to coordinate with Riverside and the Structure
Group (Riverside's power scheduling software vendor) to build the
interface to access Riverside's power scheduling system remotely.
The cost of building the interface is expected to be higher than
originally envisioned due to better understanding of the scope of the
work
■ Overall cost of scheduling services including the one-time interface
setup cost is expected to be slightly higher than originally budgeted in
the first year
■ Scheduling Services Agreement with Riverside and the Professional
Services Agreement have gone through two review iterations and are
expected to be finalized by July's Utility Board meeting
■ We are still expecting a smooth transition of scheduling services to
Riverside by October 1
c.
San Juan
Photographs
115
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AZUSA
9
R INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES��
DATE: JUNE 25, 2007
SUBJECT: IMPLEMENTATION OF NORTH AMERICA ELECTRIC RELIABILITY COUNCIL
(NERC) MANDATORY RELIABILITY REQUIREMENTS
This is a staff status report. No action is required from the Utility Board.
In the aftermath of the massive power outages in the eastern U.S. in the summer of 2003, the
electric industry regulators have taken notice of the clear deficiencies in the electric industry's
approach to service reliability.
The root causes of the massive power outage that affected more than 50 million customers
were determined to be:
• No clear and enforceable reliability standards in the industry
• Lack of enforceable communication protocols and standards among the utilities during
emergencies
• Lack of documentation and protocols to trace problems and assign responsibilities
In the ensuing two and a half years, the Federal Energy Regulatory Commission (FERC)
promulgated through rulemaking, a set of mandatory reliability standards (83 standards in
total at this time) that must be followed by all industry stakeholders. Such mandatory
standards will be enforceable by the NERC, the nation's electric reliability council which in turn
can further delegate to regional reliability council for enforcement (Western Electricity
Reliability Council (WECC) is the regional reliability council In the West). The standards will
become effective on June 18th of this year and will be enforceable and non compliance will be
subject to financial penalties up to one million dollars per violation depending on the severity
of the violation. The City is subject to a subset of standards (21 standards in total).
In the past two months, staff has conducted internal process reviews throughout the various
department divisions; identified and implemented mitigating measures in known areas of
deficiencies; participated in training sessions administered by our D.C. regulatory counsels;
and put in place a compliance program in preparation for the new NERC reliability
environment. We feel reasonably confident that we will be able to smoothly transition into the
new regulatory environment and we will periodically assess,additional resources required to
ensure full compliance. Staff intends to refine our compliance program over time as we gain
more experience with the new regulatory environment.
122
Our compliance program documentation is more than 150 pages long and thus it is not
included. If the Utility Board or the public wishes to review the document, staff can provide it
upon request (some of the information must be 'redacted however, as it relates to specific
customer information during load shedding events)
Prepared by: Bob Tang, Assistant Director of Resource Management