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AZUSA
tIGHT A WATER
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER SEPTEMBER 27,2010
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA, CA 91702
AZUSA UTILITY BOARD
ROBERT GONZALES
CHAIRPERSON
KEITH HANKS JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
URIEL E. MACIAS ANGEL CARRILLO
BOARD MEMBER BOARD MEMBER
6:30 P.M. Convene to Regular Meeting of the Azusa Utility Board
• Call to Order
• Pledge to the Flag
• Roll Call
A. PUBLIC PARTICIPATION
1. (Person/Group shall be allowed to speak without interruption up to five(5)minutes maximum time,
subject to compliance with applicable meeting rules. Questions to the speaker or responses to the
speaker's questions or comments shall be handled after the speaker has completed his/her comments.
Public Participation will be limited to sixty (60)minutes time.)
1 001
B. UTILITIES DIRECTOR COMMENTS '
C. UTILITY BOARD MEMBER COMMENTS
D. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended action will be enacted with one vote. If Staff or
Councilmembers wish to address any item on the Consent Calendar individually, it will be considered under
SPECIAL CALL ITEMS.
1. Minutes. Recommendation: Approve minutes of regular meeting on July 26, 2010 as written.
UB Min-July 26.pdf
2. Azusa Light & Water Administration Building Roof Maintenance. Recommendation: 1) Approve
the roof maintenance specifications for Azusa Light & Water Administration building; and 2) authorize
the City Clerk to advertise for bids.
w 4,0/40 .14001r '
Roof Ma int Rpt.pdf NIB.pdf NIB-Ex.pdf
3. Oil Payment Program Contract Extension. Recommendation: 1) Approve one year extension of
Professional Services Agreement with Huls Environmental Management, LLC for administration of oil
payment program in amount of$6,380; and 2) authorize the Mayor to execute said agreement.
191- 19r-
Huls Contract Huls-Proposal.pdf Huls PSA.pdf
Rpt.pdf
4. Cable Rejuvenation Contract. Recommendation: Award contract to Novinium Incorporated for
Project LD2010-3 for rejuvenating underground electric cable at 955 East Arrow Highway in amount not-
to-exceed $38,194.77.
' -
Rpt-Noviniumpdf Ex-Noy pdf
2 002
•
5. Grant of Easement by Target Corporation. Recommendation: Approve the following entitled
resolution accepting certain grant of permanent easement from the Target Corporation:
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA
ACCEPTING CERTAIN GRANT OF PERMANENT EASEMENT AND DIRECTING THE
RECORDING THEREOF.
1611411— It*
Target Esrmt Reso-Target-Esrnnt. Esmnt-Exhits.pdf
Rpt.pdf pdf
6. Request for Proposals for 2010 Urban Water Management Plan Update. Recommendation: 1)
Approve Request for Proposal (RFP) for preparation of the 2010 Urban Water Management Plan Update;
and 2) authorize staff to solicit proposals from qualified consultants.
11141— IG62
Mee
2010 UWMP UWMP Ltr RFP.pdf
Update.pdf
E. SCHEDULED ITEMS
1. Electric Fund Reserve Policy Update. Recommendation: Approve the following resolution adopting
a revised reserve policy formula for Electric Fund:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, SETTING
CERTAIN RESERVE POLICIES FOR THE ELECTRIC UTILITY ENTERPRISE FUND.
ga* kat
mat
Reserve Resolution-2010.pdf Reso 04-C37.pdf
Policy-Rpt.pdf
2. Strategic Discussions Regarding Azusa's San Juan Rights. Recommendation: Authorize the
Director of Utilities to take the following actions: 1) seek potential buyers and engage in negotiations
regarding the potential sale of all or a portion of Azusa's interest in San Juan Unit 3; and b) retain legal
counsel support through Southern California Public Power Authority to assist in preparing necessary
transactional documents in amount not-to-exceed $50,000.
San Juan.pdf
3 003
F. STAFF REPORTS/COMMUNICATIONS
1. Customer Identification Protection and Credit Information Update
MM.
FCRA Rpt.pdf
2. FY 2009-2010 Year-End Financial Reports
NCF n. Dew,.. t
Fin Rpt-FY09-10.pdf Water-Spdsht.pdf Electric-Spdsht.pdf
3. Water Supply of the City of Azusa Water System
GM-
Wtr Supply Wtr Supply
Update.pdf Update-PP.pdf
4. Multi-Agency Regional Groundwater Recovery Project
Wtr Cleanup Grndwtr Recvry
Project.pdf Project.pdf
5. Azusa Light& Water's Renewable Energy Program Update
RPS Update.pdf RPS 07 Policy.pdf RPS Leg Hist.pdf
6. Northside Park Walking Path Lighting
NorthSidePark
Lighting.pdf
4 004
G. ADJOURNMENT
1. Adjournment.
"In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city
meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the
meeting or time when special services are needed will assist staff in assuring that reasonable arrangements
can be made to provide access to the meeting."
"In compliance with Government Code Section 54957.5, agenda materials are available for inspection by
members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard,
Azusa City Library- 729 N. Dalton Avenue, and Azusa Light& Water-729 N. Azusa Avenue,Azusa CA."
5 005
Igo
AZUSA
LIGHT ATFR
CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY,JULY 26,2010—6:30 P.M.
The Utility Board/City Council of the City of Azusa met in regular session,at the above date and time,at the
Azusa Light and Water Conference Room, located at 729 N. Azusa Avenue,Azusa, California.
Chairman Gonzales called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES,CARRILLO,ROCHA
ABSENT: BOARD MEMBERS: MACIAS, HANKS(Hanks entered meeting at 6:43 p.m.)
ALSO PRESENT: Also Present
City Attorney Ferre,City Manager Delach,Assistant City Manager Makshanoff,Director of Utilities Morrow,
Assistant to the Director of Utilities Kalscheuer, Director of Customer Care and Solutions Vanca,Assistant
Director of Water Operations Anderson,Customer Care Operations Supervisor Tapia,Assistant Director of
Resource Management Lehr,Assistant Director of Electric Operations Langit,Captain Momot,Economic and
Community Development Director Christiansen,Assistant Economic and Community Director McNamara,
City Clerk Mendoza, Deputy City Clerk Toscano.
PUBLIC PARTICIPATION • Pub Part
Mr.Mike Lee addressed the Board Members requesting clarification on the outcome of the referendum;will it M. Lee
overturn the whole Vulcan issue,or will it only overturn the Development Agreement. Comments
Ms.Jeri Vogel addressed the Board Members reading section 6 of the CUP for Vulcan and asked if the repeal J. Vogel
of the Vulcan Development Agreement would invalidate the revised conditional use permit. Comments
City Manager Delach responded to question regarding the affect of the Referendum against the ordinance City Mgr
relating Vulcan Project stating it will only affect the development agreement,which contains some significant Response
benefits negotiated by Council.
UTILITIES DIRECTOR COMMENTS Dir Comments
Director of Utilities Morrow presented information on Prop 18,Safe Drinking Water Act and Prop 23 Clean G. Morrow
Jobs Initiative; he detailed both propositions. He also provided information on underground cable Comments
rejuvenation explaining the RFP.
UTILITY BOARD MEMBER COMMENTS Brd Mbr Cmts
None. None
The CONSENT CALENDAR consisting of Items D-1 through D-8, were approved by motion of Board Consent Cal
Member Carrillo, seconded by Board Member Hanks and unanimously*carried. Appvd
1. The minutes of the regular meeting of June 28,2010, were approved as written. Minutes
2. Staff was authorized to issue a Notice Inviting Bids for outside services for rejuvenation of underground NOC under
electric cables. Ground cables
3. Approval was given for the extension of contract for RBF Engineers for engineering design services for Ext Contract
Project W-266,Water Pipeline Replacement,from June 30,2010 to September 30, 2010. RBF Engr
4. Approval was given for the extension of contract for Hall&Foreman Engineers for engineering design Ext Hall &
services for Project W-265,Water Pipeline Replacement,from June 30,2010 to September 30,2010. Foreman Eng
5. A RESOLUTION OF THE UTILITY BOARD AND CITY COUNCIL OF THE CITY OF AZUSA, Res. 10-C47
CALIFORNIA, ACCEPTING CERTAIN GRANT OF EASEMENT AND DIRECTING THE Accept Grnt
RECORDING THEREOF. (Target Corporation) Of Esmt Target
6. A RESOLUTION OF THE UTILITY BOARD AND CITY COUNCIL OF THE CITY OF AZUSA, Res. 10-C48
CALIFORNIA, ACCEPTING CERTAIN GRANT OF EASEMENT AND DIRECTING THE Accept Grnt
RECORDING THEREOF. (Kir Covina, L.P.) Of Esmt Kir
7. The City Manager was authorized to sign quitclaim deeds for two water utility easements for Lowes store Quitclaim
site located in 1348 N. Azusa Avenue, Covina. Deed Lowes
8. Approve the license and service agreement with Power Settlements Consulting and Software,LLC,was Agmt Pwr
approved and the Mayor was authorized to sign said agreement. Settlements
Special Call
SPECIAL CALL ITEMS
None.
SCHEDULED ITEMS Sched Items
Customer Information System(CIS)Upgrade. CIS Upgrade
Director of Customer Care and Solutions Vanca presented the issue detailing the upgrade,problems with the K. Vanca
existing software , how these problems would be fixed and the benefits of the upgrade. Presentation
Moved by Board Member Hanks,seconded by Board Member Carrillo and unanimously*carried to approve Upgrade to
an Addendum to Information System Agreement with Systems and Software,Incorporated,for the purchase of Customer
enQuesta version 4.0 Upgrade to the City's CIS at a cost not-to-exceed $400,000; and authorize the City Information
Manager to execute said addendum and to take any and all other actions necessary for the purchase System
implementation and upgrade. Approved
Ratification of Annual Water Rights Lease Transactions. Annual Wtr
Rights Lease
Assistant Director of Water Operations Anderson addressed Water Rights Lease Transactions and provided C. Anderson
background information. He responded to questions posed by Board Members regarding surplus water and Comments
drought phases which will be brought back to another meeting for discussion.
07/26/10 PAGE TWO
007
Moved by Board Member Carrillo,seconded by Board Member Rocha and unanimously*carried to ratify the Ratification
water rights leases to the City of Arcadia,Canyon Water Company,and Miller-Coors and also signatures of Of Water
the leasing documents as allowed by Resolution No.09-C69 approved by the Utility Board at its July 27,2009 Rights leases
regular meeting.
Adjustment to Contract Water Rates for MillerCoors, LLC. MillerCoors
Assistant to the Director of Utilities Kalscheuer addressed the issue detailing the water rate increase for C. Kalscheuer
MillerCoors. Comments
Board Member Rocha offered a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF AZUSA, Res. 10-C49
CALIFORNIA,ADJUSTING CONTRACT WATER RATES FOR MILLERCOORS,LLC. Adjust Rates
Moved by Board Member Rocha, seconded by Board Member Hanks to waive further reading and adopt.
Resolution passed and adopted by the following vote of the Board Members:
AYES: BOARD MEMBERS: GONZALES,CARRILLO,HANKS, ROCHA
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: MACIAS
City of Azusa's Participation in the Los Angeles County Recycling Market Development Zone(RMDZ). RMDZ
Assistant to the Director of Utilities Kalscheuer addressed the issue stating that the Recycling Market C. Kalscheuer
Development Zone Program (RMDZ) provides technical assistance and low interest loans to businesses Comments
interested in making use of recyclable materials to create new products. To be eligible for RMDZ loans they
must be located in a jurisdiction that is in a designated RMDZ and he detailed the location of zones,how the
City became interested in the program and the process for becoming a part of the RMDZ.
Board Member Hanks offered a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF AZUSA, Res. 10-050
CALIFORNIA, SUPPORTING THE EXPANSION OF THE LOS ANGELES COUNTY RECYCLING RMDZ
MARKET DEVELOPMENT ZONE(RMDZ). Recycling
Market Dev
Zone
Moved by Board Member Hanks, seconded by Board Member Carrillo to waive further reading and adopt.
Resolution passed and adopted by the following vote of the Board Members:
AYES: BOARD MEMBERS: GONZALES,CARRILLO, HANKS
NOES: BOARD MEMBERS: ROCHA
ABSENT: BOARD MEMBERS: MACIAS
Local Reliability Adequacy Capacity Confirmation Agreement. Capacity Agmt
Assistant Director of Resource Management Lehr addressed the issue explaining the Resource Adequacy Y. Lehr
program and that it was necessary due to the mandatory planning and operational requirements of the Comments
California Independent System Operator (CAISO). He then detailed the requirements that the City is to
procure sufficient electric power capacity plus 15%for reserve margin ahead of time to ensure adequate supply
of electricity. He detailed Azusa process and plan for 2011.
07/26/10 PAGE THREE
n
Moved by Board Member Carrillo, seconded by Board Member Gonzales and unanimously* carried to Purchase
approve a Local Resource Adequacy Capacity purchase of 30 MW from RRI Energy in amount of$1,026,000 Capacity from
and authorize the Director of Utilities to execute the associated Confirmation Agreement once the executable RRI Engergy
copies are prepared.
It was consensus of the Board Members to adjourn. Adjourn
TIME OF ADJOURNMENT:7:40 P.M.
SECRETARY
*Indicates Macias absent.
NEXT RESOLUTION NO. 10-051.
07/26/10 PAGE FOUR
009
D g
A.„6, A
AZUSA
r.nr s warry
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE • SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES d
DATE: SEPTEMBER 27, 2010
SUBJECT: APPROVAL OF ROOF MAINTENANCE SPECIFICATIONS FOR THE
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING AND
AUTHORIZATION OF FORMAL BIDDING
RECOMMENDATION
It is recommended that the Utility Board approve the roof maintenance specifications for Azusa
Light & Water Administration Building and authorize the City Clerk to commence advertisement
and the formal bidding procedure. The maintenance contract will be in effect for three years
with the option to extend for a period of up to two years, not-to-exceed five consecutive years
according to section 2-516 of the Azusa Municipal Code.
BACKGROUND
Back in January 2005, Azusa Light & Water Administration Building suffered water damage due
to the heavy rain storm and needed roof repairs and maintenance. Prior to 2005, the building did
not have regular roof maintenance program which the warranty required. On September 6, 2005,
the Utility Board/City Council approved the specifications for roof repairs and three years
maintenance for the building and authorized formal bidding. On October 24, 2005, the contract
was awarded to Best Roofing & Waterproofing, Inc. After the completion of roof repairs, the
maintenance service started from April 13, 2007 and ended on April 13, 2010. In an effort to
continue maintaining the roof of the building, bids will be sought under the formal purchasing
procedures as set forth in section 2-519 of the Azusa Municipal Code. Bid document with the
specifications are attached and available at the Light & Water Administration Office and Library
for the public to review.
FISCAL IMPACT
Fiscal impact of roof maintenance services will be reported following receipt of bids.
Prepared by: Steven Yang, Senior Management Analyst
Attachment:
NIB-L&W Bldg
Roof Maint a�ecsdoc 01 0
BID DOCUMENT
SPECIFICATIONS AND PLANS
FOR
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING
ROOF MAINTENANCE
AZUSA UTILITY BOARD
ROBERT GONZALES
CHAIRPERSON
KEITH HANKS JOSEPH R.ROCHA
VICE CHAIRPERSON BOARD MEMBER
URIEL E.MACIAS ANGEL CARRILLO
BOARD MEMBER BOARD MEMBER
FRANCIS DELACH
CITY MANAGER
GEORGE MORROW
DIRECTOR OF UTILITIES
SEPTEMBER 27,2010
Document in 2010IUB Agenda 2010-09-27lReview FolderlL&W Bldg Root Maint-UB 092710-sy-092010 draft-Azusa L&W
Consent ltem.doc
011
TABLE OF CONTENTS
NOTICE INVITING BIDS NIB - 1
INSTRUCTIONS TO BIDDERS 2
SECURING BID DOCUMENT 2
PROPOSAL 2
INTERPRETATION OF PLANS AND DOCUMENTS 3
ADDENDA 3
ESTIMATED QUANTITIES 3
PREVAILING WAGES 3
OPENING OF BIDS 3
IRREGULAR BIDS 3
BIDDERS SUBMITING MORE THAN ONE BID 3
AWARD OR REJECTION OF BID 4
EXECUTION OF CONTRACT 4
CONTRACT ADDITIONS 4
SCOPE OF WORK 5
GENERAL MAINTENANCE SPECIFICATIONS 5
MAINTENANCE SPECIFICATIONS FOR EAST ROOF WELL AREAS 5
MAINTENANCE SPECIFICATIONS FOR SKYLIGHT ROOF AREAS 7
MAINTENANCE SPECIFICATIONS FOR GARAGE ROOF AREAS 7
MAINTENANCE SPECIFICATIONS FOR WEST ROOF WELL AREAS 8
MAINTENANCE SPECIFICATIONS FOR ALL TILE ROOF AREAS 9
MAINTENANCE SPECIFICATIONS FOR ELASTOMERIC DECKING AREAS 9
MAINTENANCE SPECIFICATIONS FOR ALL SUPPLEMENTAL ROOF AREAS 10
EXHIBITS 11
BID FORM 12
INFORMATION REQUIRED OF BIDDER 13
CONTRACTOR'S LICENSE DECLARATION 14
CONTRACTOR QUALIFICATION SURVEY SHEET 15
BID AMOUNT 19
EXTRA WORK PRICE SHEET 20
AGREEMENT FOR MAINTENANCE SERVICES A- 1
1. PARTIES AND DATE 1
2. RECITALS 1
2.1 Contractor 1
2.2 Project 1
3. TERMS 1
3.1 Scope of Services and Term 1
3.1.1 General Scope of Services 1
3.1.2 Term 1
3.2 Responsibilities of Contractor 1
3.2.1 Control and Payment of Subordinates; Independent Contractor 1
3.2.2 Schedule of Services 2
3.2.3 Conformance to Applicable Requirements 2
3.2.4 City's Representative 2
3.2.5 Contractor's Representative 2
3.2.6 Coordination of Services 2
3.2.7 Standard of Care; Performance of Employees 2
3.2.8 Laws and Regulations 2
3.2.9 Insurance 3
3.2.9.1 Time for Compliance 3
3.2.9.2 Minimum Requirements 3
3.2.9.3 Insurance Endorsements 3
3.2.9.4 Separation of Insureds; No Special Limitations 4
3.2.9.5 Deductibles and Self-Insurance Retentions 4
TOB - 1
012
3.2.9.6 Acceptability of Insurers 4
3.2.9.7 Verification of Coverage 4
3.2.10 Safety 4
3.2.11 Prevailing Wages 4
3.2.12 Bonds 4
3.2.12.1 Faithful Performance Bond 4
3.2.12.2 Labor and Material Bond 5
3.2.12.3 Bond Provisions 5
3.2.12.4 Surety Qualifications 5
3.3 Fees and Payments 5
3.3.1 Compensation 5
3.3.2 Payment of Compensation 5
3.3.3 Reimbursement for Expenses 5
3.3.4 Extra Work 5
3.4 Accounting Records 5
3.4.1 Maintenance and Inspection 6
3.5 General Provisions 6
3.5.1 Termination of Agreement 6
3.5.1.1 Grounds for Termination 6
3.5.1.2 Effect of Termination 6
3.5.1.3 Additional Services 6
3.5.2 Delivery of Notices 6
3.5.3 Cooperation; Further Acts 6
3.5.4 Attorneys Fees 7
3.5.5 Indemnification 7
3.5.6 Entire Agreement 7
3.5.7 Governing Law 7
3.5.8 Time of Essence 7
3.5.9 City's Right to Employ Other Contractors 7
3.5.10 Successors and Assigns 7
3.5.11 Assignment or Transfer 7
3.5.12 Construction; References; Captions 7
3.5.13 Amendment; Modification 7
3.5.14 Waiver 7
3.5.15 No Third Party Beneficiaries 8
3.5.16 Invalidity; Severability 8
3.5.17 Prohibited Interests 8
3.5.18 Equal Opportunity Employment 8
3.5.19 Labor Certification 8
3.5.20 Authority to Enter Agreement 8
3.5.21 Counterparts 8
3.6 Subcontracting 8
3.6.1 Prior Approval Required 8
EXHIBIT A 10
SCOPE OF WORK 10
EXHIBIT B 11
EXTRA WORK PRICE SHEET 11
EXHIBIT C 12
FAITHFUL PERFORMANCE BOND 13
EXHIBIT D 14
LABOR AND MATERIAL BOND 15
TOB-2 0
i 3
NOTICE INVITING BIDS
PUBLIC NOTICE IS HEREBY GIVEN that the City of Azusa,County of Los Angeles, State of
California, will receive, at the office of the City Clerk, 213 E. Foothill Blvd., Azusa, California 91702,
up to the hour of 11:00 a.m. on Monday, October 18, 2010, sealed bid for the following:
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING
ROOF MAINTENANCE
The maintenance contract will be in effect for three (3) years. Upon mutual consent, the City and
Contractor may extend the contract at its termination for a period of up to two (2) years, not to
exceed five (5) consecutive years.
In order to ensure that each Contractor is familiar with the facility covered under this bid, a
mandatory pre-bid iob walk will be held on Monday, October 4, 2010, 10:00 a.m., at the 1st floor
conference room of the Azusa Light and Water Administration Building, 729 N. Azusa Avenue,
Azusa, California 91702 and proceeding to the job site. Failure to participate will disqualify the
bidder's proposal.
Bid Document may be obtained from Azusa Light&Water at 729 N. Azusa Ave., Azusa, CA 91702,
phone (626) 812-5171. No bid shall be considered unless it is made on the Bid Form provided in
the Bid Document, sealed and filed with the City Clerk at the above address, on or before the time
specified for receiving bids. All proposals must be sealed and clearly identify the title of the bid and
the bidder's name, address, and phone number. Bids will be publicly opened and declared in the
Office of the City Clerk starting 11:00 a.m. on Monday, October 18, 2010. The results will thereafter
be presented to the Azusa Utility Board for consideration.
The City of Azusa requires that all contractors be licensed with the State of California in their
particular area of expertise. Per Section 7028.15(e) of the Business and Professions Code, a
license contractor shall not submit a bid to a public agency unless his or her contractor's license
appears clearly on the bid, the license expiration date is stated and the bid contains a statement
that the representations therein are made under penalty of perjury. Any bid not containing this
information, or a bid containing information which is subsequently proven false, shall be considered
non-responsive and shall be rejected by the City of Azusa. All bidders are required to completely fill
out the "Contractors License Declaration"contained in the bid documents.
The successful bidder must pay the prevailing wage rates and comply with applicable provisions of
State Law. The successful bidder will be required to furnish the Faithful Performance Bond and the
Labor and Material Bond in an amount equal to one hundred percent (100%) of the contract price,
and the Certificate of Insurance. Bonds shall be secured by a surety company or surety companies
satisfactory to the City annually and admitted in California. The successful bidder will also be
required and responsible for having a valid City of Azusa Business License at their own expense.
For more details on City's business license, please check online at:
http://www.azusalw.com/index.aspx?NID=270.
Bidder shall be aware that their bid is deemed public records and may be subject to disclosure upon
request. The award of the contract, if it is awarded,will be to the lowest responsive and responsible
bidder. If two or more bids are the same and the lowest, the City may accept the one it chooses.
The City may reject any or all bids received, and may waive any minor irregularities in each bid
received. If no bids are received, the City may award the contract by any alternative purchasing
procedure.
Vera Mendoza, City Clerk
City of Azusa
NIB - 1 014
INSTRUCTIONS TO BIDDERS
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING
ROOF MAINTENANCE
SECURING BID DOCUMENT
The Bid Document may be secured from the Azusa Light and Water, 729 N. Azusa Avenue, Azusa,
California 91702.
PROPOSAL
In order to be considered, bids shall be made in accordance with the following instructions:
1. All contractors submitting bids shall be present for a mandatory pre-bid job walk that will be held on
Monday, October 4, 2010, 10:00 a.m. at the 1s'floor conference room of the Azusa Light and Water
Administration Building, 729 N. Azusa Avenue, Azusa, California 91702 and proceeding to the job site.
2. The Azusa Light and Water Administration Building was built in 1995. It is a two-story commercial
building with approximately 25,860 sq. ft. The parking enclosure is one-story structure with
approximately 3,712 sq. ft. All contractors will take their own measurements, carefully review the
provided specifications, and seek all clarifying data at this time. Contractors who do not attend the
scheduled job walk will not be allowed to bid the job.
3. Bids shall be made on the Bid Form provided in the Bid Document, with all items which the Bidder is
bidding properly filled out; numbers shall be stated in writing and in figures, signatures of all persons
signing shall be in longhand; completed forms shall be without interlineations, alterations or erasures.
4. The City of Azusa requires that all contractors be licensed with the State of California in their particular
area of expertise. Per Section 7028.15(e) of the Business and Professions Code, a license contractor
shall not submit a bid to a public agency unless his or her contractor's license appears clearly on the
bid, the license expiration date is stated and the bid contains a statement that the representations
therein are made under penalty of perjury. Any bid not containing this information, or a bid containing
information which is subsequently proven false, shall be considered non-responsive and shall be
rejected by the City of Azusa. All bidders are required to completely fill out the"Contractors License
Declaration"contained in the bid documents.
5. All bids submitted shall include in the lump sum or unit prices bid, all sales or other taxes of City, State
or Federal Government of every nature in effect at the time of bidding. In the event the total amount
does not agree with the sum of the prices bid on the individual items, the prices bid on the individual
item shall govern and the total for the schedule will be corrected accordingly.
6. Bids shall not contain any recapitulation of the work to be done. Alternate proposals will not be
considered unless called for. No oral, telegraphic or telephonic proposals or modifications will be
considered. Unauthorized conditions, limitations, or provisions attached to a proposal will render it
informal and may cause its rejection.
7. Before submitting a bid, each Bidder shall carefully examine each site of the proposed work and read
the Bid Document, which includes, but not limited to, Notice Inviting Bids, Plans, Specifications, Scope
of Work/Services, Special Provisions, Addenda, and Contract to fully inform himself as to all existing
conditions and limitations.
8. Bids shall be delivered to the City Clerk, City of Azusa, on or before the day and hour set for the opening
of bids in the Notice Inviting Bid advertisement,enclosed in a sealed envelope bearing the title of the bid
and the bidder's name, address, and phone number. It is the responsibility of the bidder to see that his
bid is delivered in proper manner and time. If any bid is received after the scheduled closing time, it
shall be returned to the bidder unopened.
NIB -2 015
INTERPRETATION OF PLANS AND DOCUMENTS
If any contractor who contemplates submitting a bid for the proposed contract is in doubt as to the true
meaning of any part of the specifications or other parts of the proposed contract documents, or finds
discrepancies in or omissions from the specifications,s/he may contact the Administrative Services Division
of Azusa Light & Water at (626)812-5283 for an interpretation or correction thereof no less than two (2)
business days prior to the bid opening. Any interpretation or corrections of the proposed contract
documents will be made only by addenda duly issued, and a copy of such addenda will be distributed either
by fax, email, mail or delivery to each contractor receiving a set of plans and specifications. The City of
Azusa will not be responsible for any other explanation or interpretation.
ADDENDA
Any addenda issued before the time of bidding shall become a part of the contract documents and shall be
covered in the bid and made a part of the contract.
ESTIMATED QUANTITIES
The quantities given in the plans and specifications are approximate only, given as a basis of bid
comparison, and the City does not expressly or by implication guarantee that the actual amount of the
proposed work will correspond therewith.
PREVAILING WAGES
Contractor is aware of the requirements of California Labor Code Section 1770 et sesc. ("Prevailing Wage
Laws"), which require the payment of prevailing wage rates and the performance of other requirements on
"public works contracts." Contractor agrees to fully comply with such Prevailing Wage Laws. Copies of the
prevailing rate of per diem wages for each craft, classification or type of worker needed to execute this
Agreement shall be made available to interested parties upon request, and shall be posted at the Project
site. Contractor agrees to defend, indemnify and hold the City, its elected officials, officers, employees and
agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or
liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
OPENING OF BIDS
Bids will be opened and publicly read aloud in the City Clerk's Office at 213 East Foothill Boulevard,Azusa,
California and at the date and time stipulated in the Notice Inviting Bids. In cases where only one bid is
received, such bid may be properly opened and read aloud in the usual manner, and accepted at the option
of the Azusa Utility Board. Bidders or their representatives and other interested persons may be present at
the opening and reading of bids. If any bid furnished therewith is irregular or informal,the facts will be noted
and publicly announced at the time of reading thereof. Bidder shall be aware that their bid is deemed public
records and may be subject to disclosure upon request.
IRREGULAR BIDS
Bids may be rejected if they show any alterations of form, additions not called for, conditional bids,
incomplete bids, erasures or irregularities of any kind.
BIDDERS SUBMITING MORE THAN ONE BID
No person,firm or corporation shall submit more than one bid for the same work. A person, firm or
corporation who has submitted a sub-proposal to a bidder or who has quoted prices on materials and/or
labor to a bidder is not thereby disqualified from submitting a sub-proposal or quoting prices to other
bidders.
NIB - 3
016
AWARD OR REJECTION OF BID
The award of the contract, if it is awarded, will be to the lowest responsive and responsible bidder. If two or
more bids are the same and the lowest, the City may accept the one it chooses. The City may reject any or
all bids received, and may waive any minor irregularities in each bid received. If no bids are received, the
City may award the contract by any alternative purchasing procedure.
EXECUTION OF CONTRACT
The successful bidder will be required to furnish the followings no later than ten (10) business days after
receiving written notification of award and the proposed contract:
1. Three copies of signed contract
2. Certificate of Insurance
3. Faithful Performance Bond in an amount equal to one hundred percent (100%) of the contract price
4. Labor and Material Bond in an amount equal to one hundred percent (100%) of the contract price
Minimum Limits of Insurance: Contractor shall maintain limits no less than: (1) General Liability:$1,000,000
per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability
Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply
separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence
limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers' Compensation and Employer's Liability:Workers' Compensation limits as required by the Labor
Code of the State of California. Employer's Liability limits of $1,000,000 per accident for bodily injury or
disease.
Bonds shall be secured by a surety company or surety companies satisfactory to the City annually and
admitted in California.
The successful bidder will also be required and responsible for having a valid City of Azusa Business
License at their own expense. For more details on City's business license, please check online at:
http://www.azusalw.com/index.aspx?NID=270.
CONTRACT ADDITIONS
City of Azusa reserves the right to solicit and award proposals for additional contract areas. New additional
areas are not a guarantee to the Contractor.
NIB - 4
017
SCOPE OF WORK
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING
ROOF MAINTENANCE
The work consists of furnishing all materials, equipment, labor and services as may be necessary to
complete the below specified roof work as follows:
GENERAL MAINTENANCE SPECIFICATIONS
1. Maintenance service shall be conducted annually starting October and until the raining season is over.
2. Contractor shall notify the City's Representative one week in advance of performing maintenance
operations. Please note that the office hour is Monday through Thursday from 7 a.m. to 5:30 p.m.
3. The contractor will perform the work in a neat, workmanlike manner and shall be responsible for leaving
the job site free of dirt, dust, and debris. All excess materials shall be stored neatly and kept watertight
during the entire course of the project.
4. The contractor shall have the responsibility for the safety and care of his workers at all times, and shall
be responsible for the installing of all necessary barricades, signs, flashing lights or other warning
devices as necessary.
5. Contractor shall be responsible to screen its personnel for drug and alcohol, background check, ability
to perform the service, and morale character. Contractor is responsible to notify City's Representative
of any personnel change for the service locations.
6. Contractor shall develop and maintain a service quality control system and submit an inspection report
to City's Representative within 10 days after completion of maintenance. Contractor shall also
accompany City's Representative for inspections upon request. Any deficiency reported by the
Contractor or by City's Representative shall be corrected promptly by Contractor's personnel and
Contractor shall provide appropriate credit to the City.
7. Contractor shall submit to City progress payment invoice which indicates work completed and hours of
Services rendered by Contractor. The invoice shall describe the amount of Services and supplies
provided since the initial commencement date, or since the start of the subsequent billing periods, as
appropriate,through the date of the invoice. City shall, within 30 days of receiving such invoice, review
the invoice and pay all approved charges thereon. Contractor shall not be reimbursed for any expenses
unless authorized in writing by City.
8. At any time during the maintenance service, Contractor may recommend/suggest or City may request
that Contractor perform Extra Work. As used herein, "Extra Work" means any work which is
determined by City to be necessary for the proper completion of the Project, but which the parties did
not reasonably anticipate would be necessary at the execution of the Agreement. Contractor shall not
perform, nor be compensated for, Extra Work without written authorization from City's Representative.
Rates for certain Extra Work are set forth in the Extra Work Price Sheet.
9. Contractor shall replace, at own expense, of damaged equipment and material caused by Contractor's
negligence.
10. Contractor shall be responsible to replace water damaged ceiling tiles due to roof leaks after roofing
repair and maintenance.
MAINTENANCE SPECIFICATION FOR EAST ROOF WELL AREAS (EXHIBIT—AREA A)
1. Inspect the entire east roof well areas for any suspect evidence of leakage. Identify and repair potential
leak sources and deficiencies along with controlled water testing before and after repair to ensure water
intrusion has been resolved. Reinforce aging repair work to promote a watertight environment.
NIB -5 018
2. Re-caulk and re-coat wood lattice as needed. Apply urethane sealant at seams and joints. Apply
elastomeric coating with two coats (color to match existing as close as possible).
3. Seal metal coping joints as needed using highly elastic ringlet joint compound to withstand areas of high
expansion and contraction.
4. Seal cracks on the parapet walls as needed in the following manner:
a. Cracks Small than 1/16":
1. Apply elastomeric coating with two coats (color to match existing as close as possible) by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
b. Cracks Larger Than 1/16":
1 Route out the joint to provide clean, dry, porous surfaces on all sides of the crack.
2 Apply construction grade silicone caulking to completely fill the crack.
3 Apply elastomeric coating with two coats(color to match existing as close as possible) by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
5. Repair all flashings, pipe/vent penetrations as needed to ensure they are watertight. Use 24-gage
flashing metal as needed. Replace sewer roof caps as needed.
6. Maintain the fleece-backed elvaloy roof systems as per manufacturer's recommendation (contact Mr.
Bill Pfeifer at Ecology Roof Systems, 1400 North Harbor Blvd., Suite#601, Fullerton, California 92835,
phone number: 714-526-1006). The Ecology Roof Systems designation for the specified roof system is
ERS-#8000 with a twenty (20) year warranty since 2006. The ERS-#8000 System is composed of the
following materials:
1. ERS-#8000 FB Fleece-backed Elvaloy Sheet
2. ERS-#8000 FB Flashing Sheet
3. ERS-#8001 Flashing Adhesive
4. ERS-#8002 Sheet Adhesive
5. ERS-#8003 Inside Corners
6. ERS-#8004 Outside Corners
7. ERS-#8006 Pipe Boots
8. ERS-#8007 Walk Pads
9. ERS-#8009 Precladded Flashing Metal
10. ERS-#303U Caulking
11. ERS-#500-4 SBS Modified Base Sheet
12. ERS-#920 Rubberized Sheet
13. ERS-#M10 White Mastic and Repair Membrane
14. ERS-Eco Shield Wall Coating
15. ERS-Insulhesive
16. ERS-Mold Free Insulation
17. ERS-Seam Sealer
18. ERS-Trim Strip
19. ERS-White Top
7. Repair and waterproof the door threshold for roof access as needed.
8. Repair all drains, gutters, and down spouts as needed. Remove any debris found and ensure all drains
are open and flowing as intended.
NIB - 6
019
MAINTENANCE SPECIFICATIONS FOR SKYLIGHT ROOF AREAS (EXHIBIT—AREA B)
1. Inspect all skylight roof areas for any suspect evidence of leakage. Identify and repair potential leak
sources and deficiencies along with controlled water testing before and after repair to ensure water
intrusion has been resolved. Reinforce aging repair work to promote a watertight environment.
2. Make "3 course"permanent repairs to any:
a. Blisters
b. Splits
c. Ridges
Coat all exposed repairs with white roof coating to prevent premature aging.
3. Check all skylight dome sections and remove and reset if needed to ensure that they are watertight.
Caulk (clear color) all seams where plastic meets metal if inspection shows any possible suspect
leakage areas. Remove old caulking and re-caulk as needed.
4. Check all windows for any suspect evidence of leakage and apply caulking (clear color)to ensure all
window areas are watertight. Remove old caulking and re-caulk as needed.
5. Seal metal coping joints as needed using highly elastic ringlet joint compound to withstand areas of high
expansion and contraction.
6. Seal cracks on the stucco walls as needed in the following manner:
a. Cracks Small than 1/16":
1. Apply elastomeric coating with two coats(color to match existing as close as possible)by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
b. Cracks Larger Than 1/16":
1 Route out the joint to provide clean, dry, porous surfaces on all sides of the crack.
2 Apply construction grade silicone caulking to completely fill the crack.
3 Apply elastomeric coating with two coats(color to match existing as close as possible)by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
7. Repair all flashings, pipe/vent penetrations as needed to ensure they are watertight. Use 24-gage
flashing metal as needed. Replace sewer roof caps as needed.
8. Repair and waterproof the roof hatch for roof access as needed.
9. Repair all drains,gutters,and down spouts as needed. Remove any debris found and ensure all drains
are open and flowing as intended.
MAINTENANCE SPECIFICATIONS FOR GARAGE ROOF AREAS (EXHIBIT—AREA C)
1. Inspect the entire garage roof areas for any suspect evidence of leakage. Identify and repair potential
leak sources and deficiencies along with controlled water testing before and after repair to ensure water
intrusion has been resolved. Reinforce aging repair work to promote a watertight environment.
2. Make "3 course" permanent repairs to any:
a. Blisters
b. Splits
c. Ridges
NIB -7
020
Coat all exposed repairs with white roof coating to prevent premature aging.
3. Seal metal coping joints as needed using highly elastic ringlet joint compound to withstand areas of high
expansion and contraction.
4. Seal cracks on the stucco walls as needed in the following manner:
a. Cracks Small than 1/16":
1. Apply elastomeric coating with two coats (color to match existing as close as possible) by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
b. Cracks Larger Than 1/16":
1 Route out the joint to provide clean, dry, porous surfaces on all sides of the crack.
2 Apply construction grade silicone caulking to completely fill the crack.
3 Apply elastomeric coating with two coats (color to match existing as close as possible)by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
5. Repair all flashings, pipe/vent penetrations as needed to ensure they are watertight. Use 24-gage
flashing metal as needed.
6. Repair and waterproof the roof hatch for roof access as needed.
7. Repair all drains, gutters, and down spouts as needed. Remove any debris found and ensure all drains
are open and flowing as intended.
MAINTENANCE SPECIFICATIONS FOR WEST ROOF WELL AREAS
1. Inspect the entire west roof well areas for any suspect evidence of leakage. Identify and repair potential
leak sources and deficiencies along with controlled water testing before and after repair to ensure water
intrusion has been resolved. Reinforce aging repair work to promote a watertight environment.
2. Make "3 course" permanent repairs to any:
a. Blisters
b. Splits
c. Ridges
Coat all exposed repairs with white roof coating to prevent premature aging.
3. Seal cracks on the stucco walls as needed in the following manner:
a. Cracks Small than 1/16":
1. Apply elastomeric coating with two coats(color to match existing as close as possible)by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
b. Cracks Larger Than 1/16":
1 Route out the joint to provide clean, dry, porous surfaces on all sides of the crack.
2 Apply construction grade silicone caulking to completely fill the crack.
NIB - 8 021
3 Apply elastomeric coating with two coats (color to match existing as close as possible)by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
4. Repair all flashings, pipe/vent penetrations as needed to ensure they are watertight. Use 24-gage
flashing metal as needed. Replace sewer roof caps as needed.
5. Repair and waterproof the door threshold for roof access as needed.
6. Repair all drains,gutters,and down spouts as needed. Remove any debris found and ensure all drains
are open and flowing as intended.
MAINTENANCE SPECIFICATIONS FOR ALL TILE ROOF AREAS
1. Inspect the entire tile roof areas for any suspect evidence of leakage. Identify and repair potential leak
sources and deficiencies along with controlled water testing before and after repair to ensure water
intrusion has been resolved. Reinforce aging repair work to promote a watertight environment.
2. Replace any missing, cracked, broken, or loose tile in kind and replace underlayment as needed to
create a watertight environment. Contractor shall make efforts to match the existing obsolete color tiles
as close as possible and City will approve a color sample prior to the tiles being ordered.
3. Repair all flashings, pipe/vent penetrations, drains, and field membrane as needed to ensure they are
watertight. Use 24-gage flashing metal as needed. Replace sewer roof caps as needed.
4. Re-install tile as before after repairs and make sure there are no broken or misplaced pieces of tile in
place.
5. Replace all mortar in the repair area to match existing conditions.
6. Repair all drains, gutters, and down spouts as needed. Remove any debris found and ensure all drains
are open and flowing as intended.
MAINTENANCE SPECIFICATIONS FOR ELASTOMERIC DECKING AREAS
1. Inspect the entire elastomeric decking and roofing areas for any suspect evidence of leakage. Identify
and repair potential leak sources and deficiencies along with controlled water testing before and after
repair to ensure water intrusion has been resolved. Reinforce aging repair work to promote a watertight
environment.
2. Re-caulk and re-coat wood lattice as needed. Apply urethane sealant at seams and joints. Apply
elastomeric coating with two coats (color to match existing as close as possible).
3. Seal metal coping joints as needed using highly elastic ringlet joint compound to withstand areas of high
expansion and contraction. Make sure that a small slip joint exist to accommodate any expansion and
contraction.
4. Seal cracks on the stucco walls as needed in the following manner:
a. Cracks Small than 1/16":
1. Apply elastomeric coating with two coats (color to match existing as close as possible)by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
b. Cracks Larger Than 1/16":
1 Route out the joint to provide clean, dry, porous surfaces on all sides of the crack.
2 Apply construction grade silicone caulking to completely fill the crack.
NIB- 9 022
3 Apply elastomeric coating with two coats (color to match existing as close as possible) by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
5. Make "3 course" permanent repairs to any:
a. Blisters
b. Splits
c. Ridges
Coat all exposed repairs with white roof coating to prevent premature aging.
6. Repair all flashings, pipe/vent penetrations as needed to ensure they are watertight. Use 24-gage
flashing metal as needed.
7. Repair and waterproof the door threshold for roof access as needed.
8. Repair all drains, gutters, and down spouts as needed. Remove any debris found and ensure all drains
are open and flowing as intended.
MAINTENANCE SPECIFICATIONS FOR ALL SUPPLEMENTAL ROOF AREAS
1. Inspect all supplemental roof areas for any suspect evidence of leakage. Identify and repair potential
leak sources and deficiencies along with controlled water testing before and after repair to ensure water
intrusion has been resolved. Reinforce aging repair work to promote a watertight environment.
2. Seal metal coping joints as needed using highly elastic ringlet joint compound to withstand areas of high
expansion and contraction. Make sure that a small slip joint exist to accommodate any expansion and
contraction.
3. Seal cracks on the stucco walls as needed in the following manner:
a. Cracks Small than 1/16":
1. Apply elastomeric coating with two coats (color to match existing as close as possible) by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
b. Cracks Larger Than 1/16":
1 Route out the joint to provide clean, dry, porous surfaces on all sides of the crack.
2 Apply construction grade silicone caulking to completely fill the crack.
3 Apply elastomeric coating with two coats (color to match existing as close as possible) by brush
or roller to completely fill the crack and extend not less than six inches beyond the crack in all
directions.
4. Make "3 course" permanent repairs to any:
a. Blisters
b. Splits
c. Ridges
Coat all exposed repairs with white roof coating to prevent premature aging.
5. Repair all flashings, pipe/vent penetrations as needed to ensure they are watertight. Use 24-gage
flashing metal as needed. Replace sewer roof caps as needed.
6. Repair all drains, gutters, and down spouts as needed. Remove any debris found and ensure all drains
are open and flowing as intended.
NIB - 10 023
EXHIBITS
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING
ROOF MAINTENANCE
The following exhibits are attached for the Scope of Work:
1. Over View
2. Area A (East Roof Well Areas)
3. Area B (Skylight Roof Areas)
4. Area C (Garage Roof Areas)
5. Existing Wall Detail
6. Typical Pipe Detail
Attachment:
ALW Roof Mant
Exhibitspdf
NIB - 11 024
BID FORM
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING
ROOF MAINTENANCE
THIS BID IS SUBMITTED TO:
CITY OF AZUSA
Office of the City Clerk
213 E. Foothill Blvd.
P.O. Box 1395
Azusa, California 91702-1395
The undersigned Bidder accepts all of the terms and conditions of the Notice Inviting Bids, including without
limitations those dealing with the disposition of bid security and that this Bid will remain subject to
acceptance for 30 days after the day of Bid opening. If this Bid is accepted, Bidder agrees to enter into a
contract with the City within ten (10) days after the date of City's Notice of Award to perform and furnish all
work as specified in the contract.
In submitting this Bid, Bidder represents, as more fully set in the contract, that:
This Bid is genuine and not made in the interest of or on behalf of any undisclosed person, firm or
corporation and is not submitted in conformity with any agreement or rules of any group, association,
organization or corporation; Bidder has not directly or indirectly induced or solicited any other Bidder to
submit a false or sham bid; Bidder has not solicited or induced any person, firm or corporation to refrain
from bidding; and Bidder has not sought by collusion to secure for himself an advantage over any other
bidder.
Bidder has checked carefully all words and figures inserted in the Bid Schedule and understands that the
City of Azusa will not be responsible for any errors or omissions on the part of the undersigned in making up
his bid. In case of discrepancy between words and figures, the words shall prevail.
Bidder has examined copies of all the bidding documents and of the following addenda (if any) all which is
hereby acknowledged and that the bid includes the cost of all additional work specified thereon:
Date Number
The undersigned Bidder is licensed in accordance with the laws of the State of California.
If Corporation, affix
Corporate Seal
Bidder's Name(Company Name)
Authorized Signature Date
Name:
Title:
NIB- 12
025
INFORMATION REQUIRED OF BIDDER
The bidder is required to supply the following information. Additional sheets may be attached if necessary. If
requested by the City, the bidder shall furnish a notarized financial statement, references, and other information,
sufficiently comprehensive to permit an appraisal of his current financial condition.
1 . Company Name:
2. Address:
3. Telephone:
4. Type of Firm: Individual ( ) Partnership ( ) Corporation ( ) Others:
5. Corporation organized under the laws of the State of since year
7. Names and Titles of chief officers of the firm:
NAME TITLE
8. Number of years of experience in projects of this type: years.
9. Reference of three projects of this type:
1 . Company: Contact Person:
Address: Telephone:
2. Company: Contact Person:
Address: Telephone:
3. Company: Contact Person:
Address: Telephone:
NIB - 13 026
CONTRACTOR'S LICENSE DECLARATION
Business and Professions Code Section 7028.15(e)
The undersigned declares that he or she is
(Title)
of (Bidder),
(Company Name)
1. Contractor's License Number: State
2. Contractor's License Classification:
3. Expiration Date of Contractor's License: ,20
4. Bidder acknowledges that Section 7028.15(e)of the Business and Professions Code provides as
follows:
"A licensed contractor shall not submit a bid to a public agency unless his or her contractor's license
appears clearly on the bid,the license expiration date is stated and the bid contains a statement that the
representations therein are made under penalty of perjury. Any bid not containing this information,or a
bid containing information which is subsequently proven false,shall be considered non-responsive and
shall be rejected by the public agency."
The undersigned declares under penalty of perjury that the forgoing is true and correct.
Executed on ,20 ,at
(City and State where signed)
Name of Company
Typed Name
Signature
Title
NIB-14 027
CONTRACTOR QUALIFICATION SURVEY SHEET
Contractor Name:
Contractor Address:
I, , herby declare that I am the
(Printed Name)
of
(Title)
submitting
(Name of Firm)
declaration; that I am duly authorized to sign this declaration on behalf of the above named firm; and that all
information set forth in this declaration and all attachments hereto are, to the best of my knowledge, true,
accurate and complete as of its submission date.
I declare under penalty of perjury that the foregoing is true and that this declaration was executed in
(Location and City)
County of , State of
On
(Date) (Signature)
1 . LICENSE
A. Contractor has a California Class C-39 license for roofing work under the same company
name for minimum three (3) years. (Attach copy of contractor license certificate.)
No = Disqualified
Yes = 5
Maximum points allowable: 5
B. California Class C-39 License suspended or revoked.
No = 0
Yes = -10
Maximum points allowable: 0
C. Contractor has a valid City of Azusa business license.
No = 0
Yes = 5
Maximum points allowable: 5
D. Contractor has a local business location in the City of Azusa for at least twelve consecutive
months.
No = 0
Yes = 5
Maximum points allowable: 5
NIB - 15 028
2. SURETY
A. Able to provide the required insurance for this project:
No = Disqualified
Yes =5
Maximum points allowable: 5
B. Able to provide the required bond for this project:
No = Disqualified
Yes =5
Maximum points allowable: 5
C. How many times has Contractor's surety had to complete work in the last
three (3) years?
Once or more =0
Never =5
Maximum points allowable: 5
3. EXPERIENCE MODIFICATION RATE
Contractor's current Experience Modification Rate for workers' compensation.
(Attach Certificate of Insurance showing rate)
Bad (120 &greater) =-10
Poor (100 to 119) = 0
Average (60 to 99) = 3
Good/Excellent (0 to 59) =5
Maximum points allowable: 5
4. PROJECT EXPERIENCE
A. Number of public bonded roofing maintenance projects completed by the Contractor.
None =0
1 —4 projects = 1
5—6 projects =3
7 or more projects = 5
Maximum points allowable: 5
B. Average Number of Days Past Completion Date
(including time extensions granted by change order)
Over 31 days =-10
21 to 30 days = -5
11 to 20 days = -3
None =0
Maximum points allowable: 0
NIB - 16 029
5. ARBITRATION AND LEGAL CLAIMS
A. Number of claims of$25,000 or more by Owner within past three (3) years, or
Performance/Payment Bond Surety against prospective Contractor for: (a) poor
workmanship/incomplete performance or (b) unexcused delays in completion which were
resolved against the prospective Contractor in litigation, arbitration or were settled by
prospective Contractor or its insurers/sureties, or by a deduction in Contract Price.
3 claims settled against this Contractor
within past three (3) years =-10
1 —2 claims settled against this Contractor
within past three (3) years =0
No claims = 5
Maximum points allowable: 5
B. Number of claims of$25,000 or more for extra compensation were asserted against
Owners within past three (3) years, which were resolved that this Contractor, its surety or
insurer failed to receive a recovery in an amount equal to or exceeding 50 percent(50%)of
the amount claimed.
3 claims settled against this Contractor
within past three (3) years = -10
1 —2 claims settled against this Contractor
within past three (3) years = 0
No claims = 5
Maximum points allowable: 5
6. PRIOR DISQUALIFICATION
A. By City of Azusa
No = 0
Yes =-5
Maximum points allowable: 0
B. By Others
No = 0
Yes = -5
Maximum points allowable: 0
7. WARRANTY PERFORMANCE
A. Average time between notification and resolution
Over 90 days = -10
30 days to 90 days =0
Less than 30 days = 5
Maximum points allowable: 5
NIB - 17
030
B. Number of items left unresolved past prescribed warranty period.
0 = 5
1 or more = -10
Comments
Maximum points allowable: 5
8. SITE FAMILIARITY
Signed in and attended pre-bid conference = 5
Did not attend pre-bid conference = Disqualified
Maximum points allowable: 5
Total points:
NIB- 18
031
BID AMOUNT
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING ROOF MAINTENANCE
NO. DESCRIPTION ANNUAL AMOUNT
1 EAST ROOF WELL AREAS $
(EXHIBIT—AREA A) (figures)
Dollars
(words)
2 SKYLIGHT ROOF AREAS $
(EXHIBIT—AREA B) (figures)
Dollars
(words)
3 GARAGE ROOF AREAS $
(EXHIBIT—AREA C) (figures)
Dollars
(words)
4 WEST ROOF WELL AREAS $
(figures)
Dollars
(words)
5 ALL TILE ROOF AREAS $
(figures)
Dollars
(words)
6 ELASTOMERIC DECKING AND $
ROOFING AREAS (figures)
Dollars
(words)
7 ALL SUPPLEMENTAL ROOF AREAS $
(figures)
Dollars
(words)
TOTAL ANNUAL MAINTENANCE COST $
(figures)
Dollars
(words)
WARRANTY:
NIB - 19
032
EXTRA WORK PRICE SHEET
AZUSA LIGHT AND WATER ADMINISTRATION BUILDING
ROOF MAINTENANCE
UNIT COST
1. Labor cost:
a. Regular $ per hour
b. Overtime $ per hour
2. Materials:
3. Equipment:
4. Others:
NIB-20
033
CITY OF AZUSA
AGREEMENT FOR MAINTENANCE SERVICES
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 20_ by and
between the City of Azusa, a municipal corporation of the State of California, located at 213 East Foothill
Boulevard, Azusa, California 91702-1295, County of Los Angeles, State of California, (hereinafter referred
to as "City") and , a with its
principal place of business at
(hereinafter referred to as "Contractor"). City and Contractor are sometimes individually referred to as
"Party" and collectively as "Parties" in this Agreement.
2. RECITALS.
2.1 Contractor.
Contractor desires to perform and assume responsibility for the provision of certain maintenance
services required by the City on the terms and conditions set forth in this Agreement. Contractor represents
that it is experienced in providing roof repair and maintenance services to public clients, that it and its
employees or subcontractors have all necessary licenses and permits to perform the Services in the State
of California, and that is familiar with the plans of City.
2.2 Project.
City desires to engage Contractor to render such services for the Azusa Light and Water
Administration Building Roof Maintenance ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City
all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and
adequately supply the professional roof maintenance services necessary for the Project ("Services"). The
Services are more particularly described in the Scope of Services in Exhibit "A" attached hereto and
incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this
Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local,
state and federal laws, rules and regulations.
3.1.2 Term. The term of this Agreement shall be three (3) years from
to , unless earlier terminated as provided herein. Contractor
shall complete the Services within the term of this Agreement, and shall meet any other established
schedules and deadlines. Upon mutual consent, the City and Contractor may extend the contract at its
termination for a period of up to two (2) years, not to exceed five (5) consecutive years.
3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services
shall be performed by Contractor or under its supervision. Contractor will determine the means, methods
and details of performing the Services subject to the requirements of this Agreement. City retains
Contractor on an independent contractor basis and not as an employee. Contractor retains the right to
perform similar or different services for others during the term of this Agreement. Any additional personnel
performing the Services under this Agreement on behalf of Contractor shall also not be employees of City
and shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages,
salaries,and other amounts due such personnel in connection with their performance of Services under this
Agreement and as required by law. Contractor shall be responsible for all reports and obligations
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respecting such additional personnel, including, but not limited to: social security taxes, income tax
withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.2.2 Schedule of Services. Contractor shall perform the Services expeditiously, within
the term of this Agreement, and in accordance with the Schedule of Services set forth in the Scope of
Services in Exhibit "A" attached hereto and incorporated herein by reference. Contractor represents that it
has the professional and technical personnel required to perform the Services in conformance with such
conditions. In order to facilitate Contractor's conformance with the Schedule, City shall respond to
Contractor's submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed
schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall
be subject to the approval of City.
3.2.4 City's Representative. The City hereby designates ,or
his or her designee, to act as its representative for the performance of this Agreement ("City's
Representative"). City's Representative shall have the power to act on behalf of the City for all purposes
under this Contract. Contractor shall not accept direction or orders from any person other than the City's
Representative or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates
, or his or her designee, to act as its representative for the performance of this
Agreement ("Contractor's Representative"). Contractor's Representative shall have full authority to
represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor's
Representative shall supervise and direct the Services, using his best skill and attention, and shall be
responsible for all means, methods, techniques, sequences and procedures and for the satisfactory
coordination of all portions of the Services under this Agreement.
3.2.6 Coordination of Services. Contractor agrees to work closely with City staff in the
performance of Services and shall be available to City's staff, consultants and other staff at all reasonable
times.
3.2.7 Standard of Care; Performance of Employees. Contractor shall perform all
Services under this Agreement in a skillful and competent manner, consistent with the standards generally
recognized as being employed by professionals in the same discipline in the State of California. Contractor
represents and maintains that it is skilled in the professional calling necessary to perform the Services.
Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to
perform the Services assigned to them. Finally, Contractor represents that it, its employees and
subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally
required to perform the Services, including a City Business License, and that such licenses and approvals
shall be maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Contractor shall perform, at its own cost and expense and without
reimbursement from the City, any services necessary to correct errors or omissions which are caused by
the Contractor's failure to comply with the standard of care provided for herein. Any employee of the
Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat
to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any
employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly
removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or
to work on the Project.
3.2.8 Laws and Regulations. Contractor shall keep itself fully informed of and in
compliance with all local, state and federal laws, rules and regulations in any manner affecting the
performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices
required by law. Contractor shall be liable for all violations of such laws and regulations in connection with
Services. If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations
and without giving written notice to the City, Contractor shall be solely responsible for all costs arising
therefrom. Contractor shall defend, indemnify and hold City, its officials, directors, officers,employees and
agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or
liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
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3.2.9 Insurance.
3.2.9.1 Time for Compliance. Contractor shall not commence Work under this
Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required
under this section. In addition, Contractor shall not allow any subcontractor to commence work on any
subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all
insurance required under this section.
3.2.9.2 Minimum Requirements. Contractor shall, at its expense, procure and
maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to
property which may arise from or in connection with the performance of the Agreement by the Contractor,
its agents, representatives, employees or subcontractors. Contractor shall also require all of its
subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such
insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability. Insurance Services Office Commercial
General Liability coverage (occurrence form CG 0001); (2) Automobile Liability. Insurance Services Office
Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers' Compensation and
Employer's Liability. Workers' Compensation insurance as required by the State of California and
Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Contractor shall maintain limits no
less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability Insurance or other form with general aggregate limit is used,
either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate
limit shall be twice the required occurrence limit; (2)Automobile Liability:$1,000,000 per accident for bodily
injury and property damage; and (3) Workers' Compensation and Employer's Liability: Workers'
Compensation limits as required by the Labor Code of the State of California. Employer's Liability limits of
$1,000,000 per accident for bodily injury or disease.
3.2.9.3 Insurance Endorsements. The insurance policies shall contain the
following provisions, or Contractor shall provide endorsements on forms supplied or approved by the City to
add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be endorsed to
state that: (1)the City, its directors, officials, officers, employees, agents and volunteers shall be covered
as additional insured with respect to the Work or operations performed by or on behalf of the Contractor,
including materials, parts or equipment furnished in connection with such work; and (2) the insurance
coverage shall be primary insurance as respects the City, its directors,officials,officers,employees,agents
and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor's
scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors,
officials,officers, employees,agents and volunteers shall be excess of the Contractor's insurance and shall
not be called upon to contribute with it in any way.
(B) Automobile Liability. The automobile liability policy shall be
endorsed to state that: (1)the City, its directors, officials, officers, employees, agents and volunteers shall
be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or
unloading of any auto owned, leased, hired or borrowed by the Contractor or for which the Contractor is
responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors,
officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of
coverage excess of the Contractor's scheduled underlying coverage. Any insurance or self-insurance
maintained by the City, its directors, officials,officers,employees,agents and volunteers shall be excess of
the Contractor's insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability Coverage. The
insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers,
employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from
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work performed by the Contractor.
(D) All Coverages. Each insurance policy required by this Agreement
shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except
after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the
City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of
warranties, shall not affect coverage provided to the City, its directors,officials, officers, employees, agents
and volunteers.
3.2.9.4 Separation of Insureds; No Special Limitations. All insurance required by
this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not
contain any special limitations on the scope of protection afforded to the City, its directors,officials, officers,
employees, agents and volunteers.
3.2.9.5 Deductibles and Self-Insurance Retentions. Any deductibles or
self-insured retentions must be declared to and approved by the City. Contractor shall guarantee that, at
the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured
retentions as respects the City, its directors,officials, officers, employees, agents and volunteers; or(2)the
Contractor shall procure a bond guaranteeing payment of losses and related investigation costs,claims and
administrative and defense expenses.
3.2.9.6 Acceptability of Insurers. Insurance is to be placed with insurers with a
current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the
City.
3.2.9.7 Verification of Coverage. Contractor shall furnish City with original
certificates of insurance and endorsements effecting coverage required by this Agreement on forms
satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a
person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City
if requested. All certificates and endorsements must be received and approved by the City before work
commences. The City reserves the right to require complete, certified copies of all required insurance
policies, at any time.
3.2.10 Safety. Contractor shall execute and maintain its work so as to avoid injury or
damage to any person or property. In carrying out its Services, the Contractor shall at all times be in
compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all
necessary precautions for the safety of employees appropriate to the nature of the work and the conditions
under which the work is to be performed. Safety precautions as applicable shall include, but shall not be
limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in
accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection
ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other
safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents
or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.2.11 Prevailing Wages. Contractor is aware of the requirements of California Labor
Code Section 1770 et seq. ("Prevailing Wage Laws"), which require the payment of prevailing wage rates
and the performance of other requirements on "public works contracts." If this is a"public works contract"
pursuant to the California Labor Code and if the total compensation is$1,000 or more, Contractor agrees to
fully comply with such Prevailing Wage Laws. Copies of the prevailing rate of per diem wages for each
craft, classification or type of worker needed to execute this Agreement shall be made available to
interested parties upon request, and shall be posted at the Project site. Contractor agrees to defend,
indemnify and hold the City, its elected officials, officers, employees and agents free and harmless,
pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with the Prevailing Wage Laws.
3.2.12 Bonds.
3.2.12.1 Faithful Performance Bond. Contractor shall execute and provide
to City concurrently with this Agreement a Faithful Performance Bond in the amount of the total,
not-to-exceed compensation indicated in this Agreement, and in a form provided in Exhibit "C" attached
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hereto. No payment will be made to Contractor until it has been received and approved by the City.
3.2.12.2 Labor and Material Bond. Contractor shall execute and provide to
City concurrently with this Agreement a Labor and Material Bond in the amount of the total, not-to-exceed
compensation indicated in this Agreement, and in a form provided in Exhibit "D" attached hereto. No
payment will be made to Contractor until it has been received and approved by the City.
3.2.12.3 Bond Provisions. Should, in City's sole opinion,any bond become
insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond
within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or
cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and
Contractor shall post acceptable replacement bonds at least ten (10)days prior to expiration of the original
bonds. No further payments shall be deemed due or will be made under this Agreement until any
replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total
compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the
City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory
evidence of such increase to the City. To the extent available, the bonds shall further provide that no
change or alteration of the Agreement (including, without limitation, an increase in the total compensation,
as referred to above), extensions of time,or modifications of the time,terms,or conditions of payment to the
Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may
terminate this Agreement for cause.
3.2.12.4 Surety Qualifications. Only bonds executed by an admitted surety
insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a
California-admitted surety with a current A.M. Best's rating no less than A:VIII and satisfactory to the City. If
a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be
considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure,
and proof of such is provided to the City.
3.3 Fees and Payments.
3.3.1 Compensation. Contractor shall receive compensation, including authorized
reimbursements, for all Services rendered under this Agreement at the rates set forth in the Scope of
Services in Exhibit "A"attached hereto and incorporated herein by reference. The total compensation shall
not exceed dollars ($ ) [or
dollars ($ ) per year]
without written approval of City's Representative. Extra Work may be authorized, as described below, and
if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Contractor shall submit to City progress payment
invoice which indicates work completed and hours of Services rendered by Contractor. The invoice shall
describe the amount of Services and supplies provided since the initial commencement date, or since the
start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30
days of receiving such invoice, review the invoice and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may request that
Contractor perform Extra Work. As used herein, "Extra Work"means any work which is determined by City
to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate
would be necessary at the execution of this Agreement. Contractor shall not perform, nor be compensated
for, Extra Work without written authorization from City's Representative. Rates for certain Extra Work are
set forth in the Extra Work Price Sheet in Exhibit"B".
3.4 Accounting Records.
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3.4.1 Maintenance and Inspection. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records shall be
clearly identifiable. Contractor shall allow a representative of City during normal business hours to
examine, audit, and make transcripts or copies of such records and any other documents created pursuant
to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activi-
ties related to the Agreement for a period of three (3) years from the date of final payment under this
Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice to Contractor,
terminate the whole or any part of this Agreement at any time and without cause by giving written notice to
Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the
effective date of such termination. Upon termination, Contractor shall be compensated only for those
services which have been adequately rendered to City, and Contractor shall be entitled to no further
compensation. Contractor may not terminate this Agreement except for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein,
City may require Contractor to provide all finished or unfinished Documents and Data and other information
of any kind prepared by Contractor in connection with the performance of Services under this Agreement.
Contractor shall be required to provide such document and other information within fifteen (15) days of the
request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or
in part as provided herein, City may procure, upon such terms and in such manner as it may determine
appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall
be given to the respective parties at the following address, or at such other address as the respective
parties may provide in writing for this purpose:
CONTRACTOR:
CITY: Azusa Light &Water
P.O. Box 9500
Azusa, CA 91702-1295
Attn:
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48)
hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable
address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of
the method of service.
3.5.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and
shall take any additional acts or sign any additional documents as may be necessary, appropriate or
convenient to attain the purposes of this Agreement.
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3.5.4 Attorney's Fees. If either party commences an action against the other party,
either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing
party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees
and all other costs of such action.
3.5.5 Indemnification. Contractor shall defend, indemnify and hold the City, its officials,
officers, employees, volunteers and agents free and harmless from any and all claims, demands,causes of
action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including
wrongful death, in any manner arising out of or incident to any alleged acts, omissions or willful misconduct
of Contractor, its officials, officers, employees, agents, consultants and contractors arising out of or in
connection with the performance of the Services,the Project or this Agreement, including without limitation
the payment of all consequential damages and attorneys fees and other related costs and expenses.
Contractor shall defend, at Contractor's own cost, expense and risk, any and all such aforesaid suits,
actions or other legal proceedings of every kind that may be brought or instituted against City, its directors,
officials,officers,employees,agents or volunteers. Contractor shall pay and satisfy any judgment,award or
decree that may be rendered against City or its directors, officials, officers, employees, agents or
volunteers, in any such suit, action or other legal proceeding. Contractor shall reimburse City and its
directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs
incurred by each of them in connection therewith or in enforcing the indemnity herein provided.
Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the
City, its directors, officials, officers, employees, agents or volunteers.
3.5.6 Entire Agreement. This Agreement contains the entire Agreement of the parties
with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or
agreements. This Agreement may only be modified by a writing signed by both parties.
3.5.7 Governing Law. This Agreement shall be governed by the laws of the State of
California. Venue shall be in Los Angeles County.
3.5.8 Time of Essence. Time is of the essence for each and every provision of this
Agreement.
3.5.9 City's Right to Employ Other Contractors. City reserves right to employ other
contractors in connection with this Project.
3.5.10 Successors and Assigns. This Agreement shall be binding on the successors and
assigns of the parties.
3.5.11 Assignment or Transfer. Contractor shall not assign, hypothecate, or transfer,
either directly or by operation of law,this Agreement or any interest herein without the prior written consent
of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees
shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3.5.12 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be construed
simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time,
days or period for performance shall be deemed calendar days and not work days. All references to
Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as
otherwise specified in this Agreement. All references to City include its elected officials, officers,
employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the
various articles and paragraphs are for convenience and ease of reference only, and do not define, limit,
augment, or describe the scope, content, or intent of this Agreement.
3.5.13 Amendment; Modification. No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.14 Waiver. No waiver of any default shall constitute a waiver of any other default or
breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service
voluntarily given or performed by a Party shall give the other Party any contractual rights by custom,
estoppel, or otherwise.
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3.5.15 No Third Party Beneficiaries. There are no intended third party beneficiaries of any
right or obligation assumed by the Parties.
3.5.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal,
or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in
full force and effect.
3.5.17 Prohibited Interests. Contractor maintains and warrants that it has not employed
nor retained any company or person, other than a bona fide employee working solely for Contractor, to
solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay
any company or person, other than a bona fide employee working solely for Contractor, any fee,
commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the
award or making of this Agreement. For breach or violation of this warranty, City shall have the right to
rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of
City,during the term of his or her service with City,shall have any direct interest in this Agreement,or obtain
any present or anticipated material benefit arising therefrom.
3.5.18 Equal Opportunity Employment. Contractor represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for
employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such
non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading,
demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall also
comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan
or other related programs or guidelines currently in effect or hereinafter enacted.
3.5.19 Labor Certification. By its signature hereunder, Contractor certifies that it is aware
of the provisions of Section 3700 of the California Labor Code which require every employer to be insured
against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions
of that Code, and agrees to comply with such provisions before commencing the performance of the
Services.
3.5.20 Authority to Enter Agreement. Contractor has all requisite power and authority to
conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the
individuals who have signed this Agreement have the legal power, right, and authority to make this
Agreement and bind each respective Party.
3.5.21 Counterparts. This Agreement may be signed in counterparts, each of which shall
constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Contractor shall not subcontract any portion of the work
required by this Agreement, except as expressly stated herein, without prior written approval of City.
Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this
Agreement.
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041
CITY OF AZUSA
By: By:
Name: Name:
Title: Title:
Attest: Attest:
By: By:
Name: Vera Mendoza Name:
Title: City Clerk Title:
Approved as to Form:
By:
Best Best & Krieger LLP
City Attorney
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EXHIBIT"A"
SCOPE OF WORK
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043
EXHIBIT "B"
EXTRA WORK PRICE SHEET
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044
EXHIBIT "C"
FAITHFUL PERFORMANCE BOND
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FAITHFUL PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS,
That as Contractor,
and as Surety,
are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of:
dollars, ($ )
lawful money of the United States, said sum being not less than 100 percent of the total Contract amount,
for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, and
administrators, successors, and assigns, jointly and severally, firmly by these presents.
WHEREAS, said Contractor has been awarded and is about to enter into the annexed agreement with said
City to perform all work required under the City's Specifications entitled:
"AZUSA LIGHT AND WATER ADMINISTRATION BUILDING ROOF MAINTENANCE"
NOW,THEREFORE, if said Contractor shall perform all the requirements of said agreement required to be
performed on his part, at the times and in the manner specified herein and shall indemnify and save
harmless the said City, its officers,employees and agents,as therein stipulated,then this obligation shall be
null and void, otherwise it shall remain in full force and effect.
PROVIDED,that any alterations in the work to be done or the materials to be furnished,which may be made
pursuant to the terms of said Contract, shall not in any way release said Contractor or said Surety
thereunder, nor shall any extensions of time granted under the provisions of said Contract release either
said Contractor or said Surety, and notice of such alterations or extensions of the Contract is hereby waived
by said Surety.
In the event suit is brought upon this Bond by said City and judgment is recovered, (or settlement made
which is favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a
reasonable attorney's fee to be fixed by the court.
SIGNED AND SEALED, this day of
Contractor Surety
By By
Its Its
By By
Its Its
Surety's Phone Address
ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND
A LEGALLY SUFFICIENT POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY
THE AUTHORITY OF ANY PARTY SIGNING ON BEHALF OF A SURETY.
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EXHIBIT"D"
LABOR AND MATERIAL BOND
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047
LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS,
That as Contractor,
and as Surety,
are held and firmly bound unto the City of Azusa, hereinafter called "City" in the sum of:
dollars, ($ )
lawful money of the United States, said sum being not less than 100 percent of the total
Agreement/Contract amount, for the payment of which sum , well and truly to be made, we bind ourselves,
our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these
presents.
WHEREAS, said Contractor has been awarded and is about to enter into the annexed contract with said
City to perform all work required under the City's Specifications entitled:
"AZUSA LIGHT AND WATER ADMINISTRATION BUILDING ROOF MAINTENANCE"
THE CONDITION OF THE OBLIGATION IS SUCH THAT, if said Contractor or any of his Sub-contractors,
fails to pay for any materials, equipment, or other supplies, or for rental of same used in connection with the
performance of work contracted to be done or for work or labor thereon of any kind, or fails to pay any of the
persons named in Section 3181 , California Civil Code or amounts due under the Unemployment Insurance
Code with respect to work or labor performed by any such claimant or for any amounts required to be
deducted, withheld and paid to the Employment Developmental Department or its successor(s) from the
work of employees of the Contractor and his Sub-contractors pursuant to Section 13020 of the
Unemployment Insurance Code with respect to such work and labor and all other applicable laws of the
State of California and rules and regulations of its agencies, then said Surety will pay for the same in an
amount not exceeding the sum specified above. This bond shall inure to the benefit of any persons named
in Section 3181 of said California Civil Code, so as to give a right of action to them or their assigns in any
suit brought upon this bond. This bond shall be subject to and include all of the consistent provisions of the
Civil Code of the State of California relating to Payment Bonds for Public Works, including but not limited to
Civil Code, Sections 3225-3226 and Section 3247-3252.
PROVIDED, that any alterations in the work to be done or the materials to be furnished, which may be made
pursuant to the terms of said Contract, shall not in any way release either said Contractor or said Surety
thereunder, nor shall any extensions of time granted under the provisions of said Contract release either
said Contractor or said Surety, and notice of such alterations or extensions of the Contract is hereby waived
by said Surety.
In the event suit is brought upon this bond by said City and judgment is recovered, (or settlement made
which if favorable to City), said Surety shall pay all costs incurred by said City in such suit, including a
reasonable attorney's fee to be fixed by the court.
SIGNED AND SEALED, this day of .
Contractor Surety
By By
Its Its
By By
Its Its
Surety's Phone Address
ALL SIGNATURES ON THIS BOND MUST BE ACKNOWLEDGED BEFORE NOTARY PUBLICS, AND A LEGALLY SUFFICIENT
POWER OF ATTORNEY MUST BE ATTACHED TO THE BOND TO VERIFY THE AUTHORITY OF ANY PARTY SIGNING ON
BEHALF OF A SURETY.
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CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE A A UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES ,
DATE: SEPTEMBER 27, 2010
SUBJECT: EXTENSION OF AGREEMENT WITH HULS ENVIRONMENTAL
MANAGEMENT, LLC FOR ADMINISTRATION OF OIL PAYMENT
PROGRAM
RECOMMENDATION
It is recommended that the Azusa Utility Board: (1) approve the attached Professional Services
Agreement with Huls Environmental Management, LLC, for one year extension of its contract to
administer the City's used oil payment program, previously known as the used oil block grant
program; and (2) authorize the Mayor to execute said contract.
BACKGROUND
Huls Environmental Management, LLC has provided assistance in administering a used oil block grant
provided to the City by the California Department of Resources Recycling and Recovery (CalRecyle)
since February 2001 .
Huls has been promoting used oil recycling at five collection centers in Azusa mainly by supplying them
with used oil drain pans purchased by the City State block grant funds. The centers provide the drain
pans free to residents to promote recycling of motor oil. Huls tracks the number of drain pans given away
each month and orders more drain pans when the centers' inventories run low. Huls also tracks the
gallons of oil and used filters dropped off at the centers each month, and develops components of a report
that must be submitted to CalRecycle on an annual basis.
Since February 2001, the collection centers have recovered 122,000 gallons of used oil, 2,575 used filters,
and provided 4,432 drain pans to Azusa residents. City staff has assisted with the promotion of these
centers with an annual recycling booklet as well as newspaper ads and billing inserts.
05.5
Huls Contract Extension
September 27,2010
Page 2
The attached contract will continue the services of Huls Environmental Management for another year
with focus on public education and promotion of used oil and used filter recycling and available
collection centers within the City through bill inserts, bus shelter advertising, distribution of refrigerator
magnets, and/or newspaper advertising.
Staff considers Huls services unique and a sole source provider. Further, as of June 2010, Huls
compensation to date is 60%below existing contract budget.
FISCAL IMPACT
Proposed one year extension is $6,380. Remaining funds from Used Oil Block Grant funds (14th and 15th
Cycle) from the CalRecycle will be used to pay all billed amounts under this agreement.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Liza Cawte, Sr. Administrative Technician
Attachment:
Huls Environmental Proposal
Professional Services Agreement
056
f-I F I s Eviv; wo n►-nenta lP.0 . Box 4519
Covii,n, CA 9172
14
.Nahaa evvveht, LLG Fax; ((G6,2AG)6) 94988-�S- >06
V
August 30, 2010
Cary Kalscheuer
Azusa Light & Water
729 North Azusa Avenue
Azusa, CA 91702
SUBJECT: CONSULTING SERVICES PROPOSAL
USED MOTOR OIL RECYCLING PROGRAM — SEPT 2010 TO AUG 2011
Dear Mr. Kalscheuer,
Huls Environmental Management, LLC is pleased to present this technical and cost proposal to
the City of Azusa (City) for consideration. For the contract year ending August 15, 2011, Huls
Environmental proposes to manage and implement the City's used motor oil recycling program.
If approved, this will be the second one year extension to our September 2006 — August 15,
2009 contract.
The City receives used oil grant funding annually from CalRecycle. All California cities received
a reduced grant award for the 15th cycle, however grant funding is expected to return to its usual
level thereafter. Provided in the table below is a summary of Azusa's available grant funding as
of July 1, 2010.
$ 2,145.92 left in 14th cycle 14th cycle corresponds to FY 08/09
$ 8,230.00 15th cycle grant award 15th cycle corresponds to FY 09/10
$12,500.00 estimated OPP1 award OPP1 corresponds to FY 10/11
$22,875.92 Total
Our goal at this time is to continue the well established container distribution program, and
implement a well-rounded education campaign that targets the various audiences throughout
the community. The following is a brief description of our proposed tasks, and our proposed
budget.
PROPOSED TASKS
I. Education & Public Awareness
• Advertisements — Huls Environmental will arrange for the publication of at least four
advertisements/articles that promote the City's used oil program. The Azusa Herald and/or
the Azusa Tomorrow Newsletter will be considered. The publication dates can coincide with
the City's Clean and Green month, if feasible.
057
• Magnet distribution — Magnets, funnels, and HHW roundup flyers, were delivered to
each of the certified collection centers in June for distribution to customers. The giveaways
were well received by both center staff and customers. Huls Environmental proposes to
utilize the collection centers as distribution points on at least two more occasions,perhaps in
the late fall of 2009, and in the spring of 2010. The City's bottle shaped magnets
(purchased in June 2009)are the most practical giveaway given their functionality and long-
life. Huls Environmental will also contact the library, recreation center, senior center,
Chamber of Commerce, and city hall to request their cooperation in distributing the
magnets. Huls Environmental will bundle and deliver the magnets to all locations. More
magnets may be purchased if need be.
• Billing inserts — As an effective way of delivering the used oil message to every
residence in the City, Huls Environmental proposes the production of another utility bill
insert. The insert can be identical to the one produced in December 2009 for the
water/electric bill,or a new insert can be designed. The insert will be bilingual,and will be
printed on recycled paper so that all costs associated with printing and insertion can be
borne by the used oil grant.
• Auto Shop class—Any high school auto shop class is comprised entirely of young do-it-
yourselfers with a distinct interest in auto mechanics. Students enrolled in such classes
perform routine auto maintenance in class and likely at home. Huls Environmental proposes
to capture this target audience by working directly with any auto shop classes that may exist
in the City. We will first contact the local high school to see if such classes exist. Second,
we will work together with the instructor(s) to arrange classroom presentations, or the
distribution of CalRecycle curriculum,containers,magnets,giveaways,etc.
• Transit shelter ads—As was done once in the past, Huls Environmental proposes the
production and display of advertisements in select bus shelters throughout the City. This
will give the used oil program high visibility among public transit passengers and motorists.
We can either utilize artwork available through CalRecycle, or create a custom 44"x 65"
poster. Clear Channel Outdoor Inc.is responsible for managing the City's bus shelters,and
will handle printing and installation of the posters. According to the City's contract with Clear
Channel, printing will cost approximately $100 per shelter, while installation costs are
waived.
II. Collection Centers
• Container distribution — Huls Environmental will continue administering the container
distribution program. Each of the City's five collection centers distribute drain containers to
residents in need on an ongoing basis. We will continue to contact the centers monthly and
record the number of containers distributed,the amount of oil collected,and the number of
filters collected. GEO Plastics will store the City's supply of containers. We will request the
shipment of additional containers to centers in need.
• Site visits— Huls Environmental will perform the annual certified center site visits as
required by CalRecycle. Additionally, technical assistance with re-certification,
reimbursement claims,after hour drop-off,signage,etc.will be provided to the centers as
needed.
Ill. Grant Management and Reporting
• Reporting—Huls Environmental will continue to submit quarterly progress reports to the
City. The progress reports will provide a summary of tasks accomplished during the quarter,
Page 2
058
as well as a record of containers distributed and oil and filter collection per center. Huls
Environmental will also complete the City's annual report package for submittal to
CalRecycle by the due date of August 15, 2011.
BUDGET
Our consultant cost to perform the tasks described is presented below. Our not-to-exceed cost
is $6,380.
I. Education & Public Awareness 27 hours @ $110/hour $2,970
II. Collection Centers 18 hours @ $110/hour $1,980
III. Grant Management and Reporting 13 hours ( , $110/hour $1,430
Total $6,380
Please note that any project costs, including printing and the cost of giveaways, is in addition to
our consultant cost, and is to be paid directly to the respective vendors.
We hope that this proposal meets with your approval, and we hope to continue our relationship
with the City of Azusa. If you have any questions regarding this proposal, or if you require
additional information, please feel free to contact me at 626-332-7514.
Sincerely,
..c-_—__-_—c.,..-,-(7---- C_____,------
Sandy Costandi
Huls Environmental Management, LLC
Page 3
059
CITY OF AZUSA
PROFESSIONAL SERVICES AGREEMENT
•
1. PARTIES AND DATE.
This Agreement is made and entered into this 27th day of September 2010 by and between
the City of Azusa, a municipal organization organized under the laws of the State of California with
its principal place of business at 213 East Foothill Blvd., Azusa, CA 91702 ("City") and Huls
Environmental Management, LLC, a California Corporation, with its principal place of business at
1074 Parkview Drive #105, Covina, California 91724 ("Consultant"). City and Consultant are
sometimes individually referred to as Party and collectively as Parties.
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the City on the terms and conditions set forth in this Agreement.
Consultant represents that it is experienced in providing used oil recycling services to public clients,
is licensed in the State of California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services for the Used Oil Payment Program
project (Project) as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1 .1 General Scope of Services. Consultant promises and agrees to furnish to the
City all labor, materials, tools, equipment, services, and incidental and customary work necessary to
fully and adequately supply the professional consulting services necessary for the Project
("Services"). The Services are more particularly described in Exhibit "A" attached hereto and
incorporated herein by reference. All Services shall be subject to, and performed in accordance with,
this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable
local, state and federal laws, rules and regulations.
3.1 .2 Term. The term of this Agreement shall be from the date first set forth herein
to August 15, 2011, unless earlier terminated as provided herein. Consultant shall complete the
Services within the term of this Agreement, and shall meet any other established schedules and
RVPUBWGS\544364 1
060
deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates;Independent Contractor. The Services
shall be performed by Consultant or under its supervision. Consultant will determine the means,
methods and details of performing the Services subject to the requirements of this Agreement. City
retains Consultant on an independent contractor basis and not as an employee. Consultant retains the
right to perform similar or different services for others during the term of this Agreement. Any
additional personnel performing the Services under this Agreement on behalf of Consultant shall also
not be employees of City and shall at all times be under Consultant's exclusive direction and control.
Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with
their performance of Services under this Agreement and as required by law. Consultant shall be
responsible for all reports and obligations respecting such additional personnel, including, but not
limited to: social security taxes, income tax withholding, unemployment insurance, disability
insurance, and workers' compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously,
within the term of this Agreement, and in accordance with the Schedule of Services set forth in
Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has
the professional and technical personnel required to perform the Services in conformance with such
conditions. In order to facilitate Consultant's conformance with the Schedule,City shall respond to
Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more
detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant
shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain
key personnel will perform and coordinate the Services under this Agreement. Should one or more
of such personnel become unavailable, Consultant may substitute other personnel of at least equal
competence upon written approval of City. In the event that City and Consultant cannot agree as to
the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As
discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to
the City, or who are determined by the City to be uncooperative, incompetent, a threat to the
adequate or timely completion of the Project or a threat to the safety of persons or property, shall be
promptly removed from the Project by the Consultant at the request of the City. The key personnel
for performance of this Agreement are as follows: Ms. Sandy Costandi, Sr. Associate Consultant,
and Ms. Amelia Liman, Associate Consultant.
3.2.5 City's Representative. The City hereby designates Cary Kalscheuer,Assistant
to the Director of Utilities, or his designee, to act as its representative for the performance of this
Agreement (City's Representative). City's Representative shall have the power to act on behalf of
RVPUBWGS\544364 2
061
the City for all purposes under this Contract. Consultant shall not accept direction or orders from
any person other than the City's Representative or his or her designee.
3.2.6 Consultant's Representative. Consultant hereby designates Sandy Costandi,
Senior Associate Consultant,or her designee,to act as its representative for the performance of this
Agreement(Consultant's Representative). Consultant's Representative shall have full authority to
represent and act on behalf of the Consultant for all purposes under this Agreement. The
Consultant's Representative shall supervise and direct the Services,using his best skill and attention,
and shall be responsible for all means, methods, techniques, sequences and procedures and for the
satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in
the performance of Services and shall be available to City's staff, consultants and other staff at all
reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all
Services under this Agreement in a skillful and competent manner, consistent with the standards
generally recognized as being employed by professionals in the same discipline in the State of
California. Consultant represents and maintains that it is skilled in the professional calling necessary
to perform the Services. Consultant warrants that all employees and subcontractors shall have
sufficient skill and experience to perform the Services assigned to them. Finally, Consultant
represents that it, its employees and subcontractors have all licenses, permits, qualifications and
approvals of whatever nature that are legally required to perform the Services, including a City
Business License, and that such licenses and approvals shall be maintained throughout the term of
this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant
shall perform, at its own cost and expense and without reimbursement from the City, any services
necessary to correct errors or omissions which are caused by the Consultant's failure to comply with
the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who
is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely
completion of the Project, a threat to the safety of persons or property, or any employee who fails or
refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from
the Project by the Consultant and shall not be re-employed to perform any of the Services or to work
on the Project.
3.2.9 Laws, Regulations and State Requirements.
3.2.9.1 Laws and Regulations. Consultant shall keep itself fully
informed of and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Project or the Services, including all Cal/OSHA
requirements,and shall give all notices required by law. Consultant shall be liable for all violations
of such laws and regulations in connection with Services. If the Consultant performs any work
knowing it to be contrary to such laws,rules and regulations and without giving written notice to the
City,Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend,
R V PUB'NGS\544364 3
062
indemnify and hold City, its officials, directors, officers, employees and agents free and harmless,
pursuant to the indemnification provisions of this Agreement,from any claim or liability arising out
of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.9.2 Agreement between the City and the California Integrated
Waste Management Board. Consultant agrees to comply with all the requirements set forth by the
California Integrated Waste Management Board for administration of the California Used Oil Block
Grant Program, including any changes in these requirements during the term of this Agreement.
3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence Work
under this Agreement until it has provided evidence satisfactory to the City that it has secured all
insurance required under this section. In addition, Consultant shall not allow any subcontractor to
commence work on any subcontract until it has provided evidence satisfactory to the City that the
subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the
Agreement by the Consultant, its agents,representatives,employees or subcontractors. Consultant
shall also require all of its subcontractors to procure and maintain the same insurance for the duration
of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at
least as broad as the latest version of the following: (1)General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and
(3) Workers'Compensation and Employer's Liability:Workers' Compensation insurance as required
by the State of California and Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2)
Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers' Compensation and Employer's Liability:Workers' Compensation limits as required by the
Labor Code of the State of California. Employer's Liability limits of$1,000,000 per accident for
bodily injury or disease.
3.2.10.3 Professional Liability. Consultant shall procure and maintain,
and require its sub-consultants to procure and maintain, for a period of five (5) years following
RVPUBWGS\544364 4
063
completion of the Project, errors and omissions liability insurance appropriate to their profession.
Such insurance shall be in an amount not less than $1,000,000 per claim, and shall be endorsed to
include contractual liability.
3.2.10.4 Insurance Endorsements. The insurance policies shall contain
the following provisions, or Consultant shall provide endorsements on forms supplied or approved
by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be
endorsed to state that: (1)the City, its directors,officials,officers,employees,agents and volunteers
shall be covered as additional insured with respect to the Work or operations performed by or on
behalf of the Consultant, including materials,parts or equipment furnished in connection with such
work; and (2) the insurance coverage shall be primary insurance as respects the City, its directors,
officials,officers,employees,agents and volunteers,or if excess,shall stand in an unbroken chain of
coverage excess of the Consultant's scheduled underlying coverage. Any insurance or self-insurance
maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be
excess of the Consultant's insurance and shall not be called upon to contribute with it in any way.
(B) Automobile Liability. The automobile liability policy
shall be endorsed to state that: (1)the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be
primary insurance as respects the City, its directors, officials, officers, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's
scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its
directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors,
officials,officers,employees, agents and volunteers for losses paid under the terms of the insurance
policy which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A)coverage shall not be suspended,voided,reduced or
canceled except after thirty(30)days prior written notice by certified mail,return receipt requested,
has been given to the City; and (B) any failure to comply with reporting or other provisions of the
policies, including breaches of warranties, shall not affect coverage provided to the City, its
directors, officials, officers, employees, agents and volunteers.
3.2.10.5 Separation of Insureds;No Special Limitations. All insurance
required by this Section shall contain standard separation of insureds provisions. In addition, such
RVPUBWGS\544364 5
064
insurance shall not contain any special limitations on the scope of protection afforded to the City,its
directors, officials, officers, employees, agents and volunteers.
3.2.10.6 Deductibles and Self-Insurance Retentions. Any deductibles or
self-insured retentions must be declared to and approved by the City. Consultant shall guarantee
that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or
self-insured retentions as respects the City, its directors, officials, officers, employees, agents and
volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related
investigation costs, claims and administrative and defense expenses.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII,licensed to do business in California,
and satisfactory to the City.
3.2.10.8 Verification of Coverage. Consultant shall furnish City with
original certificates of insurance and endorsements effecting coverage required by this Agreement on
forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be
signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms
provided by the City if requested. All certificates and endorsements must be received and approved
by the City before work commences. The City reserves the right to require complete,certified copies
of all required insurance policies, at any time.
3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or
damage to any person or property. In carrying out its Services,the Consultant shall at all times be in
compliance with all applicable local,state and federal laws,rules and regulations,and shall exercise
all necessary precautions for the safety of employees appropriate to the nature of the work and the
conditions under which the work is to be performed. Safety precautions as applicable shall include,
but shall not be limited to: (A) adequate life protection and life saving equipment and procedures;
(B)instructions in accident prevention for all employees and subcontractors,such as safe walkways,
scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and
shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or
lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper
inspection and maintenance of all safety measures.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation,including authorized
reimbursements,for all Services rendered under this Agreement at the rates set forth in Exhibit "C"
attached hereto and incorporated herein by reference. The total compensation shall not exceed Six
Thousand Three Hundred Eighty Dollars ($6,380) without written approval of City's City
Manager or Assistant to the Director of Utilities. Extra Work may be authorized, as described
below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
RVPUB\NGS\544364 6
065
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by Consultant.
The statement shall describe the amount of Services and supplies provided since the initial
commencement date,or since the start of the subsequent billing periods, as appropriate,through the
date of the statement. City shall, within 45 days of receiving such statement, review the statement
and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement,City may request
that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is
determined by City to be necessary for the proper completion of the Project,but which the parties did
not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall
not perform, nor be compensated for, Extra Work without written authorization from City's
Representative.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records shall
be clearly identifiable. Consultant shall allow a representative of City during normal business hours
to examine, audit, and make transcripts or copies of such records and any other documents created
pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents,
proceedings, and activities related to the Agreement for a period of three (3) years from the date of
final payment under this Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice to
Consultant, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Consultant of such termination, and specifying the effective date thereof,at
least seven (7) days before the effective date of such termination. Upon termination, Consultant
shall be compensated only for those services which have been adequately rendered to City, and
Consultant shall be entitled to no further compensation. Consultant may not terminate this
Agreement except for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as
provided herein, City may require Consultant to provide all finished or unfinished Documents and
Data and other information of any kind prepared by Consultant in connection with the performance
of Services under this Agreement. Consultant shall be required to provide such document and other
RVPUBWGS\544364 7
066.
information within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated
in whole or in part as provided herein, City may procure, upon such terms and in such manner as it
may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this Agreement
shall be given to the respective parties at the following address, or at such other address as the
respective parties may provide in writing for this purpose:
Consultant:
Sandy Costandi, Senior Associate Consultant
Huls Environmental Management, LLC
P.O. Box #4519
Covina, CA 91723-4519
Telephone (626) 332-7514
City:
Cary Kalscheuer, Asst. to the Director of Utilities
City of Azusa
P.O. Box 9500
Azusa, CA 91702-9500
Telephone (626) 812-5174
Such notice shall be deemed made when personally delivered or when mailed,
forty-eight(48)hours after deposit in the U.S. Mail,first class postage prepaid and addressed to the
party at its applicable address. Actual notice shall be deemed adequate notice on the date actual
notice occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents &Data; Licensing of Intellectual Property. This
Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications,studies,drawings,estimates,and other documents or works of authorship fixed in any
tangible medium of expression,including but not limited to,physical drawings or data magnetically
or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by
Consultant under this Agreement(Documents&Data). Consultant shall require all subcontractors to
agree in writing that City is granted a non-exclusive and perpetual license for any Documents&Data
the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant
has the legal right to license any and all Documents & Data. Consultant makes no such
representation and warranty in regard to Documents & Data which were prepared by design
professionals other than Consultant or provided to Consultant by the City. City shall not be limited
in any way in its use of the Documents and Data at any time,provided that any such use not within
RVPUBWGS\544364 8
067
the purposes intended by this Agreement shall be at City's sole risk.
3.5.3.2 Confidentiality. All ideas,memoranda,specifications,plans,
procedures, drawings,descriptions,computer program data, input record data,written information,
and other Documents and Data either created by or provided to Consultant in connection with the
performance of this Agreement shall be held confidential by Consultant. Such materials shall not,
without the prior written consent of City, be used by Consultant for any purposes other than the
performance of the Services. Nor shall such materials be disclosed to any person or entity not
connected with the performance of the Services or the Project. Nothing furnished to Consultant
which is otherwise known to Consultant or is generally known,or has become known,to the related
industry shall be deemed confidential. Consultant shall not use City's name or insignia,photographs
of the Project,or any publicity pertaining to the Services or the Project in any magazine,trade paper,
newspaper,television or radio production or other similar medium without the prior written consent
of City.
3.5.4 Cooperation;Further Acts. The Parties shall fully cooperate with one another,
and shall take any additional acts or sign any additional documents as may be necessary,appropriate
or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either party commences an action against the other party,
either legal, administrative or otherwise, arising out of or in connection with this Agreement, the
prevailing party in such litigation shall be entitled to have and recover from the losing party reason-
able attorney's fees and all other costs of such action.
3.5.6 Indemnification. Consultant shall defend, indemnify and hold the City, its
officials, officers, employees, volunteers and agents free and harmless from any and all claims,
demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to
property or persons,including wrongful death, in any manner arising out of or incident to any alleged
acts, omissions or willful misconduct of Consultant, its officials, officers, employees, agents,
consultants and contractors arising out of or in connection with the performance of the Services,the
Project or this Agreement, including without limitation the payment of all consequential damages
and attorneys fees and other related costs and expenses.Consultant shall defend,at Consultant's own
cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every
kind that may be brought or instituted against City,its directors,officials,officers,employees,agents
or volunteers. Consultant shall pay and satisfy any judgment,award or decree that may be rendered
against City or its directors, officials, officers, employees, agents or volunteers, in any such suit,
action or other legal proceeding. Consultant shall reimburse City and its directors,officials,officers,
employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of
them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation
to indemnify shall not be restricted to insurance proceeds, if any,received by the City, its directors,
officials, officers, employees, agents or volunteers.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the
R V PUB W GS\544364 9
068
•
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by both
parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of
California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of this
Agreement.
3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other
consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the successors
and assigns of the parties.
3.5.12 Assignment or Transfer. Consultant shall not assign,hypothecate,or transfer,
either directly or by operation of law,this Agreement or any interest herein without the prior written
consent of the City. Any attempt to do so shall be null and void, and any assignees,hypothecates or
transferees shall acquire no right or interest by reason of such attempted assignment,hypothecation
or transfer.
3.5.13 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any term
referencing time, days or period for performance shall be deemed calendar days and not work days.
All references to Consultant include all personnel, employees, agents, and subcontractors of
Consultant, except as otherwise specified in this Agreement. All references to City include its
elected officials, officers, employees, agents, and volunteers except as otherwise specified in this
Agreement. The captions of the various articles and paragraphs are for convenience and ease of
reference only, and do not define, limit, augment, or describe the scope, content, or intent of this
Agreement.
3.5.14 Amendment;Modification. No supplement,modification,or amendment of
this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach,whether of the same or other covenant or condition. No waiver,benefit,privilege,
or service voluntarily given or performed by a Party shall give the other Party any contractual rights
by custom, estoppel, or otherwise.
3.5.16 No Third Party Beneficiaries. There are no intended third party beneficiaries
of any right or obligation assumed by the Parties.
RVPUB\NGS\544364 1 0
069
3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions
shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely for
Consultant,to solicit or secure this Agreement. Further,Consultant warrants that it has not paid nor
has it agreed to pay any company or person, other than a bona fide employee working solely for
Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent
upon or resulting from the award or making of this Agreement. For breach or violation of this
warranty, City shall have the right to rescind this Agreement without liability. For the term of this
Agreement,no member,officer or employee of City,during the term of his or her service with City,
shall have any direct interest in this Agreement,or obtain any present or anticipated material benefit
arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor,employee or applicant
for employment because of race,religion,color,national origin,handicap,ancestry,sex or age. Such
non-discrimination shall include, but not be limited to, all activities related to initial employment,
upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise
program, Affirmative Action Plan or other related programs or guidelines currently in effect or
hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder,Consultant certifies that it is
aware of the provisions of Section 3700 of the California Labor Code which require every employer
to be insured against liability for Worker's Compensation or to undertake self-insurance in
accordance with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement maybe signed in counterparts,each of which
shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the
work required by this Agreement,except as expressly stated herein,without prior written approval of
RVPUBWGS\544364 1 1
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City. Subcontracts,if any,shall contain a provision making them subject to all provisions stipulated
in this Agreement.
CITY OF AZUSA HULS ENVIRONMENTAL
MANAGEMENT, LLC
By: 21,1 ,/\JC By: d ,�
Joh R. Rocha Sandy ostandi
Mayor Senior Associate Consultant
Attest:
er, e,%:_
Vera Mendoza -J
City Clerk
Approved as to Form:
K6.',-(10(11)
Best Best& Krieger LLP
City Attorney
RVPUB\NGS\544364 1 2
EXHIBIT "A"
SCOPE OF SERVICES
HULS ENVIRONMENTAL MANAGEMENT, LLC
AZUSA USED OIL PAYMENT PROGRAM
Huls Environmental Management,LLC ("Consultant") shall manage and implement the following
tasks under the City of Azusa's ("City's") Used Oil Block Grant Program as administered by the
California Department of Resources Recycling and Recovery ("CalRecycle") for the period of
September 27, 2010 through August 15, 2011:
The following are recommended for Used Oil Payment Program for FY 2010-2011 (see
attached letter dated August 30, 2010)
Education & Public Awareness
• Advertisements — Huls Environmental will arrange for the publication of at least four
advertisements/articles that promote the City's used oil program. The Azusa Herald and/or
the Azusa Tomorrow Newsletter will be considered. The publication dates can coincide with
the City's Clean and Green month, if feasible.
• Magnet distribution—Magnets,funnels,and HHW roundup flyers,were delivered to each of
the certified collection centers in June for distribution to customers. The giveaways were
well received by both center staff and customers. Huls Environmental proposes to utilize the
collection centers as distribution points on at least two more occasions, perhaps in the late
fall of 2009,and in the spring of 2010. The City's bottle shaped magnets(purchased in June
2009) are the most practical giveaway given their functionality and long-life. Huls
Environmental will also contact the library, recreation center, senior center, Chamber of
Commerce, and city hall to request their cooperation in distributing the magnets. Huls
Environmental will bundle and deliver the magnets to all locations. More magnets may be
purchased if need be.
• Billing inserts—As an effective way of delivering the used oil message to every residence in
the City,Huls Environmental proposes the production of another utility bill insert. The insert
can be identical to the one produced in December 2009 for the water/electric bill, or a new
insert can be designed. The insert will be bilingual, and will be printed on recycled paper so
that all costs associated with printing and insertion can be borne by the used oil grant.
• Auto Shop class — Any high school auto shop class is comprised entirely of young do-it-
yourselfers with a distinct interest in auto mechanics. Students enrolled in such classes
perform routine auto maintenance in class and likely at home. Huls Environmental proposes
A-1
n72
to capture this target audience by working directly with any auto shop classes that may exist
in the City. We will first contact the local high school to see if such classes exist. Second,
we will work together with the instructor(s) to arrange classroom presentations, or the
distribution of CalRecycle curriculum, containers, magnets, giveaways, etc.
• Transit shelter ads — As was done once in the past, Huls Environmental proposes the
production and display of advertisements in select bus shelters throughout the City. This will
give the used oil program high visibility among public transit passengers and motorists. We
can either utilize artwork available through CalRecycle,or create a custom 44"x 65"poster.
Clear Channel Outdoor Inc. is responsible for managing the City's bus shelters, and will
handle printing and installation of the posters. According to the City's contract with Clear
Channel, printing will cost approximately $100 per shelter, while installation costs are
waived.
II. Collection Centers
• Container distribution — Huls Environmental will continue administering the container
distribution program. Each of the City's five collection centers distribute drain containers to
residents in need on an ongoing basis. We will continue to contact the centers monthly and
record the number of containers distributed, the amount of oil collected, and the number of
filters collected. GEO Plastics will store the City's supply of containers. We will request the
shipment of additional containers to centers in need.
• Site visits — Huls Environmental will perform the annual certified center site visits as
required by CalRecycle. Additionally, technical assistance with re-certification,
reimbursement claims, after hour drop-off, signage, etc. will be provided to the centers as
needed.
III. Grant Management and Reporting
• Reporting — Huls Environmental will continue to submit quarterly progress reports to the
City. The progress reports will provide a summary of tasks accomplished during the quarter,
as well as a record of containers distributed and oil and filter collection per center. Huls
Environmental will also complete the City's annual report package for submittal to
CalRecycle by the due date of August 15, 2011.
A-2
073
City Responsibilities
City shall carry out the following tasks for the period of September 27, 2010 through August 15,
2011:
1. Issue purchase order(s) for drain pans.
2. Process all payments for drain pans, including delivery costs.
3. Approve any printed materials and promotional materials and pay for these items.
4. Publicize the locations of the collection centers annually.
5. Execute all Annual Reports and submit them to the CalRecycle.
6. Prepare and submit all grant payment requests to the CalRecycle and all grant applications
and forms as may be required by the CalRecycle as part of the grant application process.
A-3
074
EXHIBIT"B"
SCHEDULE OF SERVICES
HULS ENVIRONMENTAL MANAGEMENT, LLC
AZUSA USED OIL PAYMENT PROGRAM
1. Consultant will contact each collection center monthly to obtain required information on
drain pan inventory, pans distributed, gallons recovered, and filters recovered. Place orders
with the drain container vendor based on the needs of the collection centers.
2. Conduct annual certified collection center site visits.
3. Consultant will assist in implementation of public education campaign including program
advertisement in a local newspaper and/or transit shelter poster.
4. Consultant will provide a quarterly report of progress to City by the 20th day following each
quarter's end. Submit FY 10-11 annual report to the City at least 15 days prior to the due date
established by the CalRecycle.
C-1
075
EXHIBIT "C"
COMPENSATION
The total cost of grant management from September 27, 2010 to August 15, 2011 is $6380.
Consultant Fee:
Senior Associate Consultant (SAC) $110/hr
C-2
076
it)
Tr.
AZUSA.
r.ur s u.�tare
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T. A .SSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES dr
DATE: SEPTEMBER 27, 2010
SUBJECT: AWARD CONTRACT TO NOVINIUM INC., FOR THE CABLE
REJUVENATION OF EXISTING UNDERGROUND ELECTRIC CABLE AT
955 EAST ARROW HIGHWAY—PROJECT LD 2010-3.
RECOMMENDATION
It is recommended that the Utility Board award a contract to NOVINIUM Inc. in the amount not-
to-exceed $38,194.77 for rejuvenating underground electric cable in the area of Arrow Highway
& Citrus Avenue (955 East Arrow Highway).
BACKGROUND
On July 26, 2010, the Utility Board authorized staff to prepare a Notice Inviting Bids and to
solicit outside services for cable rejuvenation. Bids were received at the City Clerks' Office on
August 31, 2010 and the results were read aloud publicly. NOVINIUM Inc. was the sole bidder.
The bid amount is not-to-exceed $38,194.77, inclusive of a ten percent contingency allowance.
The goal of this project is to demonstrate locally the viability of cable rejuvenation rather than
reconstruction of existing underground electric lines. The projected cost of cable rejuvenation
can be two to five times less expensive as reconstruction (which involves installation of
underground conduit) and with far less disruption to residences and businesses in the vicinity.
Staff evaluated the bid including the addendum as submitted by NOVINIUM. The unit cost per
foot was compared with a prior project undertaken by the same company for another California
municipal utility. NOVINIUM's bid of $4.79 per foot is consistent and within the range of unit
cost from that other project.
077
Novinium Contract Award
September 27, 2010
Page 2
As background, NOVINIUM will utilize low pressure to inject a patented fluid into the cable
strand at the cable termination. The low pressure injection approach via cable terminations will
help lessen the time needed to complete the treatment process and avoid the possibility of
damaging the existing cable insulation. Using the cable terminations when injecting the fluid will
reduce outage time to the affected customers when cable is rejuvenated. NOVINIUM Inc.'s
technical abstract on extending the power cable life is attached to this report for reference
information only.
At present, there are only two known companies that specialize in electric utility cable
rejuvenation. These two companies are NOVINIUM and UTILX. Both companies were invited
to participate and submit bids. UTILX failed to submit their bid on the due date, and upon
subsequent follow up by staff, it was disclosed by UTILX that the company elected not to bid
due to unavailability of crew resources that could be dedicated to such a small project. Based on
the above, staff is recommending the award of the outside service contract to NOVINIUM, Inc.
FISCAL IMPACT
Adequate funds are available in approved operating budget of Electric Division for this project.
Account number 33-40-735-940-6493 (Distribution Maintenance Underground Lines) will be
used to pay contractor.
Prepared by:
Federico Langit, Jr., P.E., Assistant Director—Electric Operations
Hien Vuong, P.E., Electrical Engineer
Dan Kjar, Electic Operations Supervisor
Attachment:
Brochure from Novinium on Cable Rejuvenation
078
Extending Power Cable Life an Additional 40 Years
Richard K. Brinton &Glen J. Bertini
Novinium,Inc.
Abstract: For more than 20 years, cable rejuvenation has been Estimated Annual Power Cable Injection Rates
used at electric utilities to extend power cable life. Most cable 4000
rejuvenation has been carried out in residential subdivisions.
However, with the latest improvements in injection fluids, 3300
industrial customers are beginning to adopt cable rejuvenation E ao"
for chemical,industrial,and power plants as an insurance policy
against power cable failures. For about one-half the cost of ,o 2500
replacement,power cable life can be extended up to 40 years.
W 2000 •
In 1500 •
INTRODUCTION 41)
N 1000
C.)
•
If only we could do for humans what can now be done for 500
111
medium voltage power cables. Imagine that as you o � .�J�1�
approached the end of your life,you could drink a magic elixir 1984 1968 1988 1990 1992 1990 1985 1999 2000 2002 2004 2000 2009
and within a week you could perform at your peak in every
way for another 40 years. That is precisely what rejuvenation Figure 1. Cumulative injection compiled from dozens of
fluid does for power cables — but is not magic it is chemistry industry sources including II I, [2], (3[ and 141 demonstrate
and physics. You have another option: you can replace the the growing importance of injection technology.
aging plant power cables with new cable. The new cable will
perform reliably, but installing it will disrupt the plant, take a voltage power cables have worked without failure. However,
lot longer, squander scarce world resources, and cost 2 to 5- many industrial plants of this vintage are facing failures that
times more, which must ultimately be reflected in your could shut down the plant for an extended period, or at least
production costs. Rejuvenation is a safer, faster and better shut down a line for a day or two.
alternative.
Failure costs vary widely in industrial facilities. On the low
From 1984 through 2008, over 80 million feet of medium end,there may be a cable that runs 20 meters from switchgear
voltage power cables were rejuvenated as shown in Figure 1. to a motor through a lightly loaded, easily accessible cable
As demonstrated by [5], injection is typically less than one- tray, where the cables are not interlaced with other cables.
half the cost of replacement, and cable rehabilitation This cable should be easy and inexpensive to remove and then
economics almost always favor rejuvenation over install a replacement cable. Its failure should not cause the
replacement. Undoubtedly, the favorable economics of failure of adjacent cables.
rejuvenation fueled the rapid growth in rejuvenation depicted
in Figure 1. However,this is not typical in industrial plant settings. Power
cable runs of up to 750 meters are common. The cable paths
How successful has rejuvenation been for circuit owners that are not straight. Cable might be in conduit, or interlaced with
have injected cables? According to [6],of the over 80 million other cables in one or more cable trays on different levels.
feet of cable rejuvenated, less than 1%of the cable has failed. The cable trays might not be accessible. The conduit may
In a soon to be published paper, recent improvements in fluid have collapsed, preventing the cable from being easily pulled
formulations have dropped the failure rate to less than 0.5% out. Where cable is buried, additional problems can occur.
for the most advanced fluid and injection techniques. In Many times new buildings are constructed over the original
addition to having an attractive cost profile,cable rejuvenation path of the cable.
also saves time. At an industrial plant, it takes less than one
day to inject even long lengths of medium voltage cables,and The impact of a failure can be a significant economic event.
typically only a couple of hours for most cables. In one aluminum smelter,the cost of a,one hour power outage
to the line was about$250,000. If it extended over an hour,the
cost rose to over $100,000,000, because the aluminum
What is the cost of a failure in your plant? solidified and the plant had to be rebuilt from the ground up.
Think about what a power cable failure in your plant might
Many industrial plants were constructed between 1965 and cause in downtime, repair cost, lost production value, and
1985. From the time of construction until now,the medium environmental damage.
•
Page 1
079
Manufacturing ,=
i. defects
i. stress grading
AC stress!_F
_,Ions � .Water--�---••;�;,
voltage stabilization
Vented Water Tree = uv rtabih,auon
Water trees -;: •- .,,:: ;`"
Local high- PD nuPnressw
..tlde,' Transieri '
s density:space'' over-Koitay ' ." ' ;
• charge&e-field r -- -•�-t-
Thgtfno,
' Electric Tree I `,4.- rniechaViical
Irl- UVemis;siiin :stress
r'
_ I Hot electron Free -e�Void formation„_. PD(Partial—► -I e
'v _ . acceleration radical (electrical trees) discharges)
Figure 3. Cable aging, failure and rejuvenation
Figure 2. Water trees initiate from defects (dirt) in the mechanisms.
insulation. When water trees grow large enough, an
electric tree is formed(see inset). After an electrical tree is UV emission—is a consequence of space charges returning to
formed,cable failure usually follows. their ground state. Ultraviolet photons arc emitted, which
have sufficient energy to destroy polyethylene bonds and
spawn damaging free radicals.
What Causes Medium Voltage Power Cable Failures?
Hot electron acceleration—is a consequence of very high local
Medium voltage cables fail due to a phenomenon called water fields created around some dielectric imperfections including
trees. Water trees can grow from the inside of the cable out, space charges. Hot electrons can break polyethylene bonds
from the outside of the cable in, or from defects within the and create free radicals.
insulation. As they grow, they look like trees or bushes.
Figure 2 shows how water trees grow until they can no longer 'Thermo-mechanical stress — causes the halo visible in most
hold the voltage stress and an electric tree is formed. Once an aged cables, which are exposed to water and a 24-hour
electrical tree is formed, the cable usually fails within two temperature cycle and is described in [7], As the cable warms,
weeks. the solubility of water in polyethylene increases substantially
and more water rapidly diffuses into the cable from the
Figure 3 provides an overview of cable aging and failure surrounding soil. As the temperature of the cable falls, the
mechanisms (rectangles) and the mechanisms by which cable solubility of water decreases and water cannot permeate out of
rejuvenation (rounded rectangles) interfere with aging and the cable quickly enough to avoid supersaturation. Driven by
failure. It is not the purpose of this paper to recite the work of thermodynamic forces, the supersaturated water seeks its
countless others to explain the mechanisms of water treeing liquid state and condenses to the micro-voids of the halo.
and how those water trees ultimately lead to failure. Instead,
we briefly review the process described by Figure 3. Void formation — is caused by UV photons and hot electrons
created primarily through the water tree process and by the
Manufacturing Defects — while not absolutely required for thermo-mechanical stress.
water tree growth, they certainly accelerate the growth and
propagation of water trees and hence the longest water trees in PD (partial discharges) — manifest in voids, which are large
any section of cable are quite likely to involve some enough for the gas within the voids to be ionized by the
imperfection. electrical field. The PD inception voltage is greater than the
extinction voltage, because once the gas within the void
AC stress,Ions,and Water—are the three requirements for the becomes ionized;the PD is more easily sustained.
growth of water trees(see Figure 2). In general,reductions in
any of these three elements retard water tree growth. • Failure — results as partial discharges erode the wall of the
void in which they occur. The erosion of each discharge in a
PE void increases the size of the void and hence decreases the
Local high-density space charge and electrical fields—are the partial discharge inception and extinction voltages for that
inevitable consequence of large water trees and are void. This self-acceleration means that any PD occurring at
exacerbated by transient over voltage events such as operating voltages in polyethylene is likely to lead to rapid
switching,failure,lightning,and off-line cable testing. failure.
Page 2
08n
1.1
What is Cable Rejuvenation? Ingredient Purpose
Isolauryl alcohol Short term
• Cable rejuvenation introduces silicone fluid into medium Tolylethylmethyldimethoxy-
voltage power cable strands. silane Medium term silane
• The fluid migrates into the conductor shield and the Dodeeylbenzenesulfonie
insulation. acid Condensation catalyst
• Injection fluids modify the chemistry of the insulation and Cyanobutylmethyl- Long term silane;
the physics of the cable to extend the reliable life of the dimethoxysilane Stress grading
cable circuit.
Tinuvin®123 HALS UV stabilizer
What Problems does Cable Rejuvenation Solve? Tinuvin®1130 UVA stabilizer
Geranylacetone Voltage stabilizer
Ferrocene PD suppression;
RejuvenationUVA stabilizer
Problems You Outcomes Irgastab®Cable KV10 Antioxidant
Face Achieved Table 2. A summary of the ingredients utilized by the
cable rejuvenation process. (Tinuvin and Irgastab are registered
Same reliability as new trademarks of Ciba Specialty Chemicals.)
Declining cable cable in a fraction of the
reliability time MICRO-VOID FILLING—Not to be confused with voids,
which can be imaged with an optical microscope, micro-voids
Spending more than are on a much smaller scale. These micro-voids are usually
$10/ft to solve power 50%cost reduction chemical imperfections in the polyethylene and are
cable reliability characterized by the presence of bonded oxygen, often
problems carboxyl-groups, which have an affinity for water relative to
non-treed PE. The silanes react with and displace (see
Insufficient maintenance Shift cost of cable failures DRYING) water at oxidized PE sites within the water trees.
budget for cable failures from O&M$to CAPX$ The replacement of conducting ionic water with a silicone
Table 1. Problems and outcomes. dielectric increases the dielectric strength of the insulation.
What applications for fluid injection in power cables have DRYING—There are two drying effects. The first, the
proven to be successful? chemical reaction of silanes with water, is the most widely
reported in past literature, but is the less important of the two
IIMWPE,XLPE,TR-XLPE,EPR,butyl-rubber insulation drying effects. Much more important than the transient
• chemical drying is the ability of the treatment to reduce the
• Single phase cables(conductors generally 4/0 or smaller) reentry of water. To this end, materials, which have an
• Feeder cables(3 conductors generally larger than 4/0) improved affinity for polyethylene, provide superior water
• Network cables repellent capability.
• Transmission cables
• Submarine cables STRESS GRADING—The inclusion of high dielectric
constant layers to grade the electric field within cables and
It is not possible to inject: cable components is widely practiced and well understood.
Cable rejuvenation provides stress grading on a micro-scale
• Solid conductor cable inside the voids.
• Strand blocked cable
• Paper lead cables VOLTAGE STABILIZATION—The voltage stabilizing
effects of ketones are due to keto-enol-tautomerism and were
How Does Rejuvenation solve the cable failure model? first demonstrated by [8]and later in [9]. Tautomers provide a
stable receptor for hot electrons. The enol form of the
Figure 3 shows seven rejuvenation mechanisms (as rounded tautomer absorbs much of the energy of hot electrons and
rectangles) along with arrows, which indicate the steps of the converts to the transition forms and a free proton. These
aging and failure process, which are interfered with by each resonant transition forms delocalize the excess negative
rejuvenation mechanism. The seven rejuvenation mechanisms charge. The theory is that a hot electron is first captured, then
are described below. thermalized,and finally released.
Page 3
o
O >(
UV STABILIZATION—Rejuvenation technology includes field all but disappears. In the event that a PD does occur, a
components, which absorb photons in the 275 to 400 nm small portion of the ferrocene is consumed and simultaneously
range. These are called ultra violet absorbers or UVA for raises the pressure in the void and releases an oxygen
short. Specifically Tinuvin 1130 and ferrocene provide the scavenger, namely atomic iron. These effects act to quickly
appropriate absorption. Tinuvin 1130 and ferrocene are each snuff out incipient partial discharges and mitigate the damage
quite soluble in PE, but diffuse slowly. Their beneficial UVA normally incurred when a discharge occurs.
effects persist for over 4 decades in most applications. In
addition to the UVA component, a hindered amine light How are cables injected in the field?
stabilizer, or HALS component, is included. HALS are free
radical scavengers that trap radicals before subsequent
reaction leads to polymer degradation. As demonstrated in Rejuvenation Injection Process
[10], HALS are self regenerative. After quenching a free •De-energize,test 8 ground cable(A-B) .Swage injection adaptors&connectors
radical, the HALS regenerate and can then quench another •Pinpoint all splices,vacuum-excavate •Inject sub-segments at moderate pressure
free radical. UVA and HALS enjoy a chemical synergy. •Remove all splices,terminations& -
Otiv
Since UVA materials attenuate UV emissions, there will connectors
always be some UV photons,which damage the polymer, and •Position new connectors,injection
this is the case where the HALS comes to the rescue. adaptors&new splices
However, by itself, a HALS would be overwhelmed, if 100% "
of the UV photons damaged polymer bonds. Together, UVA .., r ,t Ag,
and HALS provide greater UV stability than either one alone. Ire4Y Pn !�
Fzr
ANTIOXIDATION—Antioxidants are included in virtually L , to i Li
�..x rWO We
all modern cable compound formulations. While originally
deployed to prevent oxidation during the extrusion process, it ` IimiMi -
has been shown in [11] that antioxidants also slow the growth —s
of water trees. It has also been demonstrated in [12] that the Figure 4. Overview of injection process.
presence of antioxidants increases the electrical tree inception
voltage. KV 10, a sulfur containing phenolic antioxidant, has What is the Business Case for Injection?
been demonstrated to slow the growth of water trees by a
factor of four. This class of sulfur containing phenolic Engineering experts now believe the nation is entering a
antioxidants has been shown to increase electrical tree period that could be marked by a dramatic increase in power
initiation voltage by up to 75% at just 0.2%µ.. KV10 enjoys a cable failures unless considerably more is spent on addressing
very high solubility in polyethylene, and because of its high old and deteriorated cables in industrial plants.
molecular weight of 424.7, a very low diffusion rate. The
combination of high solubility and low diffusivity yields a Cable rejuvenation is at a minimum one-half the cost of
very low sweat out or exudation as was shown in[11]. replacement. More typically it is 1/3 to 1/5 the cost of
replacement. Factors that increase the cost advantages of
PD SUPPRESSION—There are several mechanism involved injection are:
in the suppression of partial discharges or PDs. First as
described previously, local stress reduction though stress • Copper conductors vs.aluminum conductors
grading increases the partial discharge inception and • Direct buried cables or collapsed conduits
extinction voltages. As described in [13], a free electron, • Longer cable runs
sometimes from cosmic rays, is a necessary precursor to the • Unknown cable routes
initiation of a PD. Therefore, a second suppression a Cable routes with many turns
mechanism is provided by the electron affinity of the • Interlaced cables in cable trays
previously described voltage stabilizer (geranylacetone) • Cable tray inaccessibility
described in [8] and [9], and the electron accepting ferrocene
as shown in [14]. The time to inject a cable is significantly less than the time to
replace a cable. Typically once the cable ends are replaced,
Third and fourth mechanisms are also provided by the injection takes from 1-12 hours depending on the cable length
ferrocene. The presence of ferrocene is designed to prevent and the strand compaction. Runs of 100 meters can be
the inception of partial discharges. This is accomplished by injected in less than one hour. Cables of 600 meters could
rendering the walls of large voids partially conductive when take 12 hours. Cable replacement for runs of 100 meters
voltages exceed a threshold well below typical inception could take up to a day and runs of 600 meters could take up to
voltages in a manner analogous to the electronic activation of 3 days or more,depending on accessibility.
a transistor. Once the walls are partially conductive, the e-
Page 4
082
The space, accessibility, and equipment required for cable In January 2009, during a plant shutdown, the remaining four
rejuvenation is considerably less than for cable replacement. 3-phase cables were injected. Because of the success of these
No lifting or heavy pulling equipment is required, only small cable injection projects, the plant is considering injecting
tanks of fluid on either end of the cable are utilized. additional cables. When complete, all medium voltage cables
will last another 40 years.
Because rejuvenation is typically less than one-half the cost of
replacement, you can extend the life of at least twice as much Power Plant, Texas-1n September 2008, Hurricane Ike
cable with the same budget. New cables and rejuvenated struck the Texas coast and the storm surge that followed
cables today both have an expected life of 40 more years. resulted in flooding at a power plant near the coast and most
of the plant was underwater.
Once an older vintage cable is over 20 years old, there is a
definite risk of cable failure. Cable rejuvenation can be like Two weeks after the storm, when disconnecting a motor,plant
"buying an insurance policy", once this point in time is personnel found water running out of one of the cables. After
reached in a cable's life. With rejuvenation, cable life can be many years in operation,the cable ends were no longer sealed.
extended another 40 failure-free years. It was important to remove this salt water from the cable
strands before restarting the plant.
Where has cable rejuvenation been used for industrial
plants cables? Cable rejuvenation was selected for this work, because the
work could be completed in days vs. the weeks that it would
Terra Industries, Oklahoma — This anhydrous ammonia have taken to replace the cables. The schedule advantage was
plant in Woodward, OK was built in 1975 and the cables are the key decision factor in selecting injection in order to
now 34 years old. The plant has eight 3-phase, 5 kV, 1000 maintain the plant restart date.
kcm, EPR insulated cables feeding the plant. In 2007, there
was a cable failure on one phase of one cable. Terra was Rejuvenation injection adaptors were also an important
concerned that an additional failure could shut down the plant. decision factor, because the in injection adapters permanently
Consequently, the plant wanted to insure that the cables did seal the ends of the cable. If a future storm surge ever flooded
not fail. this plant, no salt water will get into the treated and sealed
cable strands.
Each cable was about 200 meters long and ran from the
incoming power line pole, then underground across the First, a survey was carried out. Cables to be treated were
parking lot, and into the switchgear from underneath. Three identified and the required parts and equipment were ordered.
of eight cables were injected during plant operations in Two days later the equipment,fluid,and personnel were onsite
January 2008. The last cable in the first half was not injected, and had begun work to restore the cables. Over the next 14
because excavating the cable fault could have caused damage days,over 25,000 feet of cable were rejuvenated.
to other live cables encased in the same concrete slurry. The
injection of these three cables took 3 days out of 7 days onsite. The cost of the rejuvenation was about 1/3 the cost of buying
Three phases of each cable were injected at one time. In and pulling in new cables, and much less plant labor was
addition to replacing the terminations, the rejuvenation crew required to complete the work. Rejuvenation also provided a
carried out proactive preventative maintenance by installing significant schedule advantage over pulling in new cables.
new arrestors for the plant.
Because the plant knew very little about cable rejuvenation
Mark Jensen,Engineering Manager,said, before this project,there were many skeptics at the plant about
"We were very impressed with the rejuvenation process. this process. After treatment and before plant startup, the
cables were tested. The results were exceptionally good—
The people were knowledgeable and worked efficiently.
better than new cable,and 100 times better than the last test on
They found problems with our terminations and solved
them. the cables before the storm. After this project, the plant said
that cable rejuvenation would be part of their regular decision
We liked the fact that the injection did not leave any process in the future.
smell in our plant. All chemical preparation was done
outside. When they came inside everything was sealed. How can cable rejuvenation help industrial plants reduce
We were disappointed that we could not repair the faulted their carbon footprint?
cable, but the risk was too great to the other live cables.
Based on the success of this project, we plan to inject the For every meter of cable injected
remaining four 3-phase cables next year after the weather • 16 grams of silicon fluid are used
cools down and the plant electric load is lower." • 195 grams of aluminum are saved
Page 5
n83
• 484 grams of copper are saved 9. Wartusch, et al "Polymer-based electrical insulation and
• 963 grams of plastic are saved electrical conductor insulated therewith",U.S. Pat.4,897,312.
10. Step et al, "Mechanism of Polymer Stabilization by
Diesel fuel-1.09 gal/meter is eliminated for: Hindered-Amine Light Stabilizers (HALS). Model
• Transporting the cable,factory to site Investigations of the Interaction of Peroxy Radicals with
• Taking bigger construction equipment to the site HALS,Amines,and Amino Ethers",Macromolecules 1994,v.
• Drilling,trenching,or using a backhoe 27,pp 2529-2539.
11. Matey & Labbe, "Exploring the Water Treeing Inhibition
What impact can rejuvenation have on your plant? Effect of Antioxidants for XLPE Insulation", Jicable '07, 7'h
International Conf. on Insulated Power Cables,pp 754-757.
Was your plant built before 1985? If so, have any of the 12.Sekii et al, "Effects of Antioxidants on Electrical Tree
medium voltage power cables failed? If not yet, what would Generation in XLPE", 2001 IEEE 7`h Int'l Conf. on Solid
be the impact of a cable failure on your plant? Dielectrics,June 25-29,pp 460-464.
13. Boggs, "Diagnostic Techniques for Medium and High
SUMMARY Voltage Cable",2003 Spring ICC,Subcommittee A.
14.Gubin et al,"Redox Properties of Cyclopentadienylmetal
As medium voltage cables age past 20 years, they will begin Compounds Ferrocene,Ruthenocene,Osmocene",J.
to fail and cause plant outages. These outages can cause a Organometallic Chem.,v. 30(1971),pp 243-255.
major disruption to plant operations, depending on the cable
location.One solution is cable replacement before failure.
AUTHORS
Another solution is cable rejuvenation. Cable rejuvenation is
almost always the most cost effective rehabilitation strategy. Richard K. Brinton is the Vice President ,
In addition,the time and disruption required to implement this of Business Development of Novinium. `
solution are much lower. With the 40-year cable life He has been responsible for introducing t .. '�
extension provided by rejuvenation, more and more industrial cable rejuvenation to utilities around the ', -.'
plants are choosing to rejuvenate. world. Brinton has over 30 years ,
experience in business development in "!
the Americas, Europe, Asia, and ' .
REFERENCES Australia. He has focused his career on
the worldwide introduction of new
1. Tarpey, "Cost Effective Solution to URD Reliability: Cable technologies and has gained worldwide experience in
Rehabilitation", Pennsylvania Electric Association T&D industrial processes,machine tools, robotics, and construction.
Committee Meeting,May 8, 1990. Mr. Brinton holds a B.S. in Industrial Engineering and a B.A.
Liberal Arts from the Pennsylvania State University, is a
2. Bertini&Chatterton,"Dielectric Enhancement
Senior Member of the IEEE, and is a licensed professional
Technology", IEEE Electrical Insulation Magazine,
March/April 1994-Vol.lO,No.2,pp 17-22.
engineer.
3.Bertini,"Failures in Silicone-Treated German Cables Due
to an unusual Methanol-Aluminum Reaction",ICC meeting Glen J. Bertini is the President, CEO
Minutes,October,29 2002,p. 1104. and Chairman of Novinium, Inc. He .p;
has spent the last two decades working
4. Bertini,"Injection Supersaturation in Underground with cable rejuvenation technology +• . -
Electrical Cables",U.S.Patent 6,162,491. beginning with its development at Dow l f�
5. Bertini,"Advancements in Cable Rejuvenation Corning in 1985 and continuing
Technology", IEEE/PES 1999 Summer Meeting,Reliability through its commercialization and
Centered Maintenance,July 21, 1999. growth to over 80 million feet of cable rejuvenated so far. Mr.
6.Chatterton,"A New Generation Cable Restoration Fluid", Bertini was employed by Dow Coming, a silicon chemical
oral presentation IEEE/1CC/SubA,Nov.28,2008. manufacturer, as a development engineer, where he was part
7.Bertini,"Molecular Thermodynamics of Water in Direct- of a small team that developed and commercialized the first
Buried Power Cables", IEEE Electrical Insulation Magazine, cable rejuvenation products. Mr. Bertini has over 40 articles
Nov./Dec.2006. published on the subject of cable rejuvenation technology,
holds 23 patents,and has 7 more pending. Mr. Bertini holds a
8. Wartusch, "Increased voltage endurance of polyolefin
B.S. in Chemical Engineering from Michigan Technological
insulating materials by means of voltage stabilizers," IEEE University, is an IEEE Fellow, a voting member of the ICC,
1980. and a licensed professional engineer.
Page 6
', 14Ww J- *
T4,,,D 4**110, 1
RIIT ► N' A
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES (C A
�,�f
rA
Y"
DATE: SEPTEMBER 27, 2010
SUBJECT: ACCEPTANCE OF GRANT OF EASEMENT FROM TARGET
CORPORTATION
RECOMMENDATION
It is recommended that the Utility Board 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
Landowners are required to grant an easement to the City of Azusa - Light & Water Department
for any electric facilities to be installed in private property. These grants of easements allow the
Utility-owner the right-of-way for operation and maintenance of such facilities.
Attached herewith is the grant of easement and its "Exhibit A" and "Exhibit B" for the electric
facilities located within the property at 809 North Azusa Avenue also known as the Target Store.
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 - Electrical Engineer
O8
RESOLUTION NO.
A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE
CITY OF AZUSA ACCEPTING A CERTAIN GRANT OF PERMANENT
EASEMENT AND DIRECTING THE RECORDING THEREOF.
THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. That Grant of Permanent Easement, Addendum and Exhibits A and B attached
hereto are accepted as executed by the Target Corporation, under the date of September 16th,
2010 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 Exhibits "A" and "B" attached hereto Grant of Permanent Easement.
SECTION 2. That the City Clerk is hereby authorized and directed to cause said attached Grant
of Permanent Easement,Addendum and Exhibits A and B to be filed for recording in the Office
of the Los Angeles County Recorder.
SECTION 3. That the City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS day
Joseph R. 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 27th day of September, 2010.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Vera Mendoza, City Clerk
086
RECORDING; REQUESTED 131' AND
WHEN RECOR1n:i) MAIL To:
The City ot'Azusa THIS IXX'UMFNr is FILED Er?AT THE
Light and Water Depat,r n REQUEST OF TiIF CITY OF AZUSA
729 North Azusa Avent;r PURSUANT To SECTION 6103 of
1'. C). [lox 9500 THE GOVERNMENT Cool-. No
Azusa.('A 91702 Fl:F SHAtI.BE CI IAROFI)THEREFOR.
(Si'A{ I
\BOVE THIS l.l`t•.FOR R.E ORWF.R'SUSE)
GRANT OF PERMANENT EASEMENT
FOR VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged, TARGET CORPORATION ("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"), a non-exclusive perpetual 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 he 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
(the "Easement Area").
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.
This Easement is subject to the terms and conditions of the attached Addendum.
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 -41 ) _, 20 JO.
TARGET CORPORATION
By: 7/11-1111-11
Name Chris Cast
_______.£?ft'ei for Real Estate
Its:
rarTet Corporatr�?,:
081
STATE OF �? ,� "t } � ) CAPACITY CLAIMED BY SIGNER
COUNTY OF_ ,_ru, ,?t_✓1 )
INDIVIDUAL(S)
- CORPORATE
On 1'jc- #'rc,vv� 1`,201Q before me, T., V , personally _
appeared__ .�.- } . 5.1.. personally known to me- OFFICER(S)
4R----{kava-to-iie on--itrr. I,est.s of-satisfaehv+y-• to be the persons) whose
name(s) is/are subscribed to the w,thin instrument and acknowledged to me that TITLE(S)
he/she/they executed the same in his/her/their authorized capacity(ies), and that by - PARTNER(S)
his/her/their signature(s) on the instrument the personts), or the entity upon behalf of
which the person(s)acted.executed the instrument, ATTORNEY-IN FACT
TRUSTEE(S)
Witness my hand and official seat.
- SUBSCRIBING WITNESS
GUARDIAN/CONSERVATOR
L7 OTHER:•
SIt NATURE OF ARY
41,
EMILY LOUISE HARER
4111";.• NOTARY PUBLIC•MINNESOTA
o• MY COMMISSION
' 'L�'• GXPIRES JAN,31,2x01 5 SIGNER IS REPRESENTING:
nn r nr.r' ",/'vA .AAAA/ 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 i Number of Pages
RIGHT:
Date of Document
Signer(s)Other Than Named Above
088
t
ADDENDUM TO
GRANT OF PER.\JANENT EASEMENT
TO Tilt: ( I•n'OF AZUSA BY TARGET CORPORATION
The Easement is subject to the following terms and conditions:
I,
Reservationtof Itiglus' elocation. Grantor hereby reserves and retains all other property rights in and to
the Easement Area,including without limitation,the rights to(a)use the Easement Area for any purpose whatsoever,so long
as such use does nor substantially and unreasonably interfere with.Grantee's rights hereunder(it being expressly understood
that the use of the surface of the Easement Area for vehicular traffic.pedestrian traffic, landscaping,parking and/or signage
shall be deemed not to substantially interfere with Grantee's rights hereunder)and(b) locate electric.gas and water lines and
other utilities in the liasenrent Area, o long as such improvements do not substantially and unreasonably interfere with
Grantee's permitted use of the I•as;nrent Area.
2. installation of_$ssue'n; . The underground Systems placed in the Easement Area by Grantee shall be buried
to a depth not less than rt inches below the existing surface.and Grantee shall cause the backfill to be compacted in layers to
avoid settling,voids and.or air pockets
3, ("oviduct()Mork and Notification. Any installation,maintenance,replacement,repair and/or removal of
the Systems performed b) Grantee. its agents and employees shall be performed(i)at Grantee's sole cost and expense,(ii)
during months other than November. December or January(except in the event of an emergency),(iii)after thirty(30)days'
notice to the Grantor(except that in an em ers�ency the work may be initiated after reasonable notice).(iv)after normal
business hours(except in the event(Ilan emergency)and(v)with adequate provision for the safety and convenience of all
persons using the surface of such areas. In addition,Grantee, its agents and employees shall(a)promptly pay all costs and
expenses associated with said work and(bi diligently complete such work as quickly as possible.
4. t`se \•laintenance. Any use of the Easement shall he performed with care and in such manner as to cause
the least interference with the surface of the Easement Area and with the use and enjoyment thereof by Grantor and others
lawfully present thereon. Grantee shall maintain the Systems in a good and safe condition,and Grantee shall install,
maintain,operate, repair. replace and remove the Systems in compliance with all applicable governmental rules,regulations
and requirements
Restoration,by Grantee: Removal of Systems. It'the surface of the Easement Area or any portion thereof
related to the roadways and drive‘k ay; within the Easement Area, or any landscaping,curbing,pavement or other
improvements related to the roadway x and driveways within the Easement Area shall be disturbed by the installation,
operation,maintenance. re•plaeeinent or renisal activities.or other activities performed by or on behalf of Grantee in
connection with its use of the Easement.nt. Naul sill LILT and improvements referred to in this Section 5 shall he promptly
restored by Grantee to their condi' r;jest n,to: to such disturbance. Immediately following the performance of work by or
on behalf (:f(irantce.Giant. ',h:dl remove titurn the I as:Jrne•nt Area and surrounding land all equipment. material and debris
resulting from or used Hi e )inc.ttun eeidi >ue•h work.
6. Normal and Reasonable 1 se by tirantor. Grantor, its successors and assigns and persons occupying or
lawfully present on the Easement Area shall not he liable for damage, Wally, which may be caused by normal and reasonable
use of,or vehicular or pedestrian Traffic over. the Easement.Area. Such normal and reasonable use may include the
landscaping or parking of vehicles on the Easement Area and installation,operation and maintenance of standard parking lot
improvements including paving,bumper curbs,light standards,striping and landscaping.
7. Prohibition Againstions. Grantee shall not permit any mechanics',materialmen's or other liens to be tiled
against the Easement Area or other property owned by(.;cantor or any part thereof for work or materials furnished Grantee in
connection with the use of the l.ascmc nt. and(irantcc agrees to indemnify,defend and hold Grantor harmless from and
against the same.
8. Indemnification. I o the extent permitted by law.tlirantee shall indemnify.defend and hold harmless Grantor
from and against any and all'taints.demands- losses.damages.costs and expenses(including but not limited to court costs,
penalties and reasonable attorney;' feesi.judgments, liabilities and causes of action of any nature whatsoevet resulting from or
relating to the use or oe upancv of the 1•iasemurt by(irantce or arising in any!Manner out of the acts or omissions of Grantee or its
089-.
1
agents or employees or any other persons acting.under Grantee's direction or control in connection with the Easement or with the
use or occupancy of the Easement Area.
9. 10 Representations or Warranties:Subic.tto Encumbrances. Grantee agrees that it is accepting the
Easement Arca without any v artanty or representation regarding the Easement.and subject to all valid and existing licenses,
leases,grants,exceptions, encumbrances. title detects.matters of record. reservations and conditions affecting the Easement
Area andior a fleet access thereto
10. 'Notices, All notices sent to Grantor shall be sent by certified or overnight mail to Grantor at the 1 dlowntg
address:
Target Corporation
Attn: Real Estate-Existing Stores(T-2767)
1000 Nicoilet Mail
Minneapolis. \ttnnc,ota „-ii)'
11. Miscellaneous. [his Agiceinent shall 1•c governed by and construed in accordance with the laws of the
State of California. This 1_aecnient shall not he construed strictly for or against either Grantor or Grantee. The captions are
inserted in this Agreement only lbr convenience of reference and do not define,limit or describe the scope or intent of any
provisions of the Agreement. All notices to Grantor shall he delivered in writing at the address noted in the recitals or such
• other address as is provided by Grantor.
]Rest of page intentionally left blank.]
090
_--- _ -
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FILED IN B()0K �/�� PA(IES '/? AND 43 OF MAPS IN THE OFFICE OF THE COUNTY
RECORDER OF SimDC0UNTY AND WITHIN THE LAND DESCRIBED IN RESOLUTION No.
09-[}92. RECORDED QCT0BEK 23, 2009 AS INSTRUMENT No. 20091803459. OFFICIAL
RECORDS OF SAT) COUNTY :4\11) STRIP:, BEING DESCRIBED AS FOLLOWS:
STRIP"A"
A 15.00 FOOT WIDE STRIP OF LAND, THE CENTERLINE OF SAID STRIP BEING
DESCRIBED AS FOLLOWS:
BEGINNING AT Ti|E CUUiH64STERLY CORNER OF SAID LOT; THENCE ALONG THE
EAST LINE OF SAID LOT NORTH 00^80'54' EAST. 19.21 FEET TO THE TRUE POINT OF
BEGINNING; THENCE LEAVING SAID LINE SOUTH 89^32'24^ VVE8T, 308.74 FEET TO
POINT "A"; THENCE CONTINUING ALONG SAID LINE, SOUTH O9"33'24" WEST1392
FEET TO THE WEST LINE OF SAID RESOLUTION. `
THE SIDELINES OF SAID STRIP TO BE PROLONGED OR SHORTENED TO ORIGINATE IN
SAID EAST LINE AND TO TERMINATE IN SAID WEST LINE.
STRIP "B"
A 15.00 FOOT WIDE STRIP {)F LAND. THE CENTERLINE OF SAID STRIP BEING
DESCRIBED AS FOLLOWS:
BEGINNING AT POINT "A"; THENCE NORTH 00"00'00' EAST. 45.20 FEET TO POINT"B".
EXCEPTING THAT PORTION LYING WITHIN STRIP "A'
STRIP "C"
A 33.12 FOOT WIDE STRIP OF LAND, LYING 13.04 FEET WESTERLY AND 2008 FEET
EASTERLY OF THE FOLLOWING DESCRIBED LINE:
BEGINNING AT PC;NT^'8"; THENCE NORTH 08^00'0O^ EAST. 15.00 FEET.
THE ABOVE LEGAL DESCRIPTION IS DELINEATED ON EXHIBIT "lar'AND IS MADE A PART
HEREOF FOR REFERENCE PURPOSES
THIS DESCRIPTION WAS PREPARED BY ME, OR UNDER MY DIRECTION, IN
CONFORMANCE WiTH 'I HE PROFES8|()NA| LAND SURVE
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CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AA, " • UTILITY
BOARD AND AZUSA CITY COUNCIL
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: SEPTEMBER 27, 2010
• SUBJECT: AUTHORIZE STAFF TO SOLICIT REQUESTS FOR PROPOSALS — 2010
URBAN WATER MANAGEMENT PLAN UPDATE
RECOMMENDATION
It is recommended that the Azusa Utility Board approve attached request for proposals (RFP) for
preparation of the 2010 Urban Water Management Plan Update and authorize staff to solicit
proposals from qualified consultants.
BACKGROUND
The Urban Water Management Planning Act, Sections 10617 and 10621 of the California Water
Code, requires each urban water supplier providing water for municipal purposes either directly
or indirectly to more than 3,000 customers or supplying more than 3,000 acre-feet of water
annually, to prepare, update and adopt its Urban Water Management Plan (UWMP) at least once
every five years on or before December 31, in years ending in five and zero. Because the
Department of Water Resources has granted an extension of time for retail water purveyors like
Azusa Light & Water, the 2010 update to the UWMP is due no later than July 1, 2011.
Since 1985 when the first UWMP was required, the task of preparing the Plan has grown from a
simple document to a large volume of information including water conservation, recycling,
contingency planning, and water supply projects.
Coordination of information between the water suppliers and appropriate agencies in the
surrounding area is required by the UWMP. All water suppliers are required to notify cities and
counties in their service area of the opportunity to submit comments regarding the UWMP
during the update process. For Azusa Light & Water, the surrounding agencies include Covina,
West Covina, Irwindale, Glendora, California American Water Company — Duarte, Valley
County Water District, Covina Irrigating Company and Los Angeles County.
093
2010 Urban Water Management Plan
September 27, 2010
Page 2
To perform the complex task of compiling and preparing the 2010 Urban Water Management
Plan, the services of a qualified and experienced engineering consultant are necessary. Since this
work is expected to exceed $20,000, Azusa Municipal Code section 2-517(f) requires that the
Utility Board/City Council approve the scope of services included in attached RFP and that a
competitive process be conducted to select the best qualified firm.
With this approval and authorization, it is anticipated that the RFP for Consultants to prepare the
Azusa Light & Water Urban Water Management Plan 2010 update would be released shortly
after authorization with consultant selection and approval in November.
FISCAL IMPACT
The fiscal impact of this proposed study will be reported in a staff Agenda Report to the Utility
Board following receipt of proposals in response to our RFP.
Prepared by:
Chet F. Anderson P.E., Assistant Director—Water Operations
094
September 28, 2010
Consultant
Reference: Request for Proposals - Provide Engineering Services For:
2010 Urban Water Management Plan (UWMP)Update
Gentlemen:
Azusa Light & Water(ALW) invites your proposal to perform the referenced engineering
services for the 2010 Urban Water Management Plan Update
General Description of the Project
The Urban Water Management Planning Act, Sections 10617 and 10621of the California Water
Code (appropriate Code sections attached as Attachment A), requires each urban water supplier
providing water for municipal purposes either directly or indirectly to more than 3,000 customers
or supplying more than 3,000 acre-feet of water annually, to prepare, update and adopt its Urban
Water Management Plan (UWMP) at least once every five years on or before December 31, in
years ending in five and zero. Because the Department of Water Resources has granted an
extension of time, the 2010 update to the UWMP is due no later than July 1, 2011 for retail water
purveyors like Azusa Light & Water; but for wholesale water purveyors such as Metropolitan
Water District of Southern California, the due date remains December 31, 2010.
The California Water Code, Article 2, (§ 10631-10635) requires the UWMP to include the
following basic items:
• A description of service area;
• A description of the existing and planned sources of supply and the reliability
of those sources during an average water year, a single dry year and multiple
dry years;
• A description of existing groundwater management activities;
• A description of opportunities for exchanges or transfers of water;
• Historic and projected water use;
• A description of Demand Management Measures;
• Discussion of an Urban Water Shortage Contingency Plan and analysis;
• Discussion of the opportunity to use recycled water.
Water suppliers are required to coordinate the preparation of the UWMP update with other water
suppliers and appropriate agencies in the area. All water suppliers are required to notify cities
and counties in their service area of the opportunity to submit comments regarding the UMWP
during the update process. A copy of the draft 2010 UWMP plan must be made available for
- 1 -
095
public review during normal business hours and the urban water supplier is required to file their
UWMPs, or amendments thereof, with the DWR and any City or county within which the
supplier provides water, no later than 30 days after adoption. UWMPs are reviewed by DWR
staff to determine compliance with the requirements of the Urban Water Management Planning
Act. Results of the DWR review are provided to urban water supplies through a review letter.
DWR provides a Legislative Report to the California Legislature summarizing the status and
outstanding elements of the UWMPs.
Scope of Services
The consulting firm chosen to perform the UWMP update shall provide the following services:
I. Collect and Review Available Data (Section 10631 a,b,c,d,e; 10635)
Prior to beginning work, Consultant, and the Azusa Light and Water staff will hold a
kickoff meeting to develop schedules, review the 2005 UWMP submitted to DWR and discuss
areas requiring update, obtain the Azusa Light and Water data, identify critical work items,
establish Consultant- Azusa Light and Water staff coordination, and plan and coordinate the
general execution of work. Consultant will review the existing data on the Azusa Light and
Water service area including water supply and demand, water conservation programs, water use
restrictions and ordinances, and water system revenues and expenses. Consultant will utilize
information already compiled and included in the 2005 UWMP and make appropriate
modifications to expedite the 2010 UWMP update process.
Consultant will evaluate water supply reliability. Consultant will review the 2005 UWMP
and update the one-year and three-year worst-case water supply scenarios as appropriate. In
addition, Consultant will review the potential availability and use of recycled water with
particular emphasis on the Groundwater Reliability Improvements Plan (GRIP) project.
Consultant will evaluate water demand trends and estimate water demands for the next 20
years, in conjunction with Azusa Light and Water staff. Estimated demands will be compared to
the one-year and three-year worst-case supply scenarios to identify potential water supply
shortages, if any.
Note: In the process of gathering data, where data is available from other sources, Consultant
should endeavor to minimize Azusa Light & Water's participation in data gathering to the fullest
extent possible.
II. Evaluate Water Demand Management Measures (Section 10631 f,g,h)
Consultant will evaluate the Azusa and Water existing water demand management
measures and ordinances with particular emphasis to those measures listed under Section 10631
(f)(1) of the Urban Water Management Planning Act. All water demand management measures
- 2 -
096
listed in the Urban Water Management Planning Act will be addressed in the Azusa and Water
UWMP. Consultant will work with Azusa Light and Water staff to identify other demand
management measures which potentially may be implemented.
III. Review and Evaluate Potential Water Sources (Section 10631 i; Section 10633)
Consultant will work with Azusa Light and Water staff to evaluate the potential for
development of desalinated water and evaluate the potential use of recycled water. Consultant
will investigate potential sources of recycled water in the Azusa Light and Water services area
and will work with Azusa Light and Water staff to develop a list of potential uses of recycled
water within the Azusa Light and Water service area.
IV. Update Water Shortage Contingency Plan (Section 10632)
Consultant will review the Azusa Light and Water Water Shortage Contingency Plan.
Consultant will compare projected water demands to worst-case water supply scenarios to
identify potential water supply shortages. Consultant will work with Azusa Light and Water staff
to develop water shortage stages of action, water use reduction goals for each stage, and water
use restrictions. Consultant will provide general revenue and expenditure analysis to evaluate
potential revenue decreases during water conservation periods. Consultant will work with Azusa
Light and Water staff to develop mechanisms to measure actual water conservation. Consultant
will assist with preparation of a draft resolution adopting the Water Shortage Contingency Plan
including provisions to implement the Water Shortage Contingency Plan.
V. Prepare Urban Management Plan
Consultant will use data developed in Task 1 through 4 to prepare the 2010 UWMP
update for the Azusa Light and Water. This task includes coordination with Azusa Light and
Water staff to address all comments received. copies of the completed Urban water
Management Plan will be presented to Azusa Light &Water.
Submittals required for this proposal
Consultants proposing on this project shall submit the following along with any other
information the consultant considers supportive:
1. A list of 2005 Urban Water Master Plan Updates prepared by Consultant.
2. Resumes of consultant personnel with Urban Water Management Update experience,
who may work on this project.
3. A complete and current consultant fee schedule.
4. A schedule of insurance coverage. Minimum insurance requirements for consultants are
included in Azusa's Standard Professional Services Agreement attached as Attachment B
- 3 -
097
5. A recitation of the scope of services proposed.
6. A schedule for completing the milestones required for the process of preparing and
gaining approval for the Urban Water Management Plan
7. A fee estimate for the proposed services broken down by task. Fee estimate should
include a reasonable cost for implementing additional requirements which may arise from
possible additional requirements from the DWR in November, 1020
8. Notice of services that are not included in this proposal but can be added as an extra
service along with the cost of the extra service, e.g. attendance at hearings
Date and Time Due
The requested proposals shall be submitted to the Light & Water Department second floor desk
on or before 5:00 PM, , October , 2010.
Consultant selection will be made on the basis of qualifications and experience and cost will be a
factor in the selection.
Please contact Chet Anderson, at 626-812-5209 with questions and requests for additional
information that can't wait until the pre-proposal Meeting.
Very truly yours,
Chet F. Anderson, P.E.
Assistant Director of Utilities- Water Operations
cc: George Morrow
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098
ATTACHMENT A
099
ATTACHMENT A
Established: AB 797, Klehs, 1983
Amended: AB 2661,Klehs, 1990
AB 11X, Filante, 1991
AB 1869, Speier, 1991
AB 892,Frazee, 1993
SB 1017, McCorquodale, 1994
AB 2853, Cortese, 1994
AB 1845, Cortese, 1995
SB 1011,Polanco, 1995
AB 2552,Bates, 2000
SB 553, Kelley,2000
SB 610, Costa, 2001
AB 901,Daucher,2001
SB 672, Machado, 2001
SB 1348, Brulte, 2002
SB 1384, Costa,2002
SB 1518, Torlakson, 2002
AB 105, Wiggins,2004
SB 318,Alpert,2004
CALIFORNIA WATER CODE DIVISION 6
PART 2.6. URBAN WATER MANAGEMENT PLANNING
CHAPTER 1. GENERAL DECLARATION AND POLICY
10610. This part shall be known and may be cited as the "Urban Water Management
Planning Act."
10610.2. (a) The Legislature finds and declares all of the following:
(1) The waters of the state are a limited and renewable resource subject to
ever-increasing demands.
(2) The conservation and efficient use of urban water supplies are of
statewide concern; however, the planning for that use and the
implementation of those plans can best be accomplished at the local
level.
(3) A long-term, reliable supply of water is essential to protect the
productivity of California's businesses and economic climate.
(4) As part of its long-range planning activities, every urban water supplier
should make every effort to ensure the appropriate level of reliability in
California Urban Water Management Planning Act Page 1
July 5,2005
100
its water service sufficient to meet the needs of its various categories
of customers during normal, dry, and multiple dry water years.
(5) Public health issues have been raised over a number of contaminants
that have been identified in certain local and imported water supplies.
(6) Implementing effective water management strategies, including
groundwater storage projects and recycled water projects, may require
specific water quality and salinity targets for meeting groundwater
basins water quality objectives and promoting beneficial use of
recycled water.
(7) Water quality regulations are becoming an increasingly important
factor in water agencies' selection of raw water sources, treatment
alternatives, and modifications to existing treatment facilities.
(8) Changes in drinking water quality standards may also impact the
usefulness of water supplies and may ultimately impact supply
reliability.
(9) The quality of source supplies can have a significant impact on water
management strategies and supply reliability.
(b) This part is intended to provide assistance to water agencies in carrying
out their long-term resource planning responsibilities to ensure adequate water
supplies to meet existing and future demands for water.
10610.4. The Legislature finds and declares that it is the policy of the state as follows:
(a) The management of urban water demands and efficient use of water shall
be actively pursued to protect both the people of the state and their water
resources.
(b) The management of urban water demands and efficient use of urban water
supplies shall be a guiding criterion in public decisions.
(c) Urban water suppliers shall be required to develop water management
plans to actively pursue the efficient use of available supplies.
CHAPTER 2. DEFINITIONS
10611 . Unless the context otherwise requires, the definitions of this chapter govern the
construction of this part. •
California Urban Water Management Planning Act Page 2
July 5, 2005
101
10611.5. "Demand management"means those water conservation measures,
programs,and incentives that prevent the waste of water and promote the reasonable
and efficient use and reuse of available supplies.
10612. "Customer"means a purchaser of water from a water supplier who uses the
water for municipal purposes,including residential,commercial,governmental,and
industrial uses.
10613. "Efficient use"means those management measures that result in the most
effective use of water so as to prevent its waste or unreasonable use or unreasonable
method of use.
10614. "Person"means any individual,firm,association,organization,partnership,
business,trust,corporation,company,public agency,or any agency of such an entity.
10615. "Plan"means an urban water management plan prepared pursuant to this part.
A plan shall describe and evaluate sources of supply,reasonable and practical efficient
uses,reclamation and demand management activities. The components of the plan
may vary according to an individual community or area's characteristics and its
capabilities to efficiently use and conserve water. The plan shall address measures for
residential,commercial,governmental,and industrial water demand management as
set forth in Article 2(commencing with Section 10630)of Chapter 3. In addition,a
strategy and time schedule for implementation shall be included in the plan.
10616. "Public agency"means any board,commission,county,city and county,city,
regional agency,district,or other public entity.
10616.5. "Recycled water"means the reclamation and reuse of wastewater for
beneficial use.
10617. "Urban water supplier"means a supplier,either publicly or privately owned,
providing water for municipal purposes either directly or indirectly to more than 3,000
customers or supplying more than 3,000 acre-feet of water annually. An urban water
supplier includes a supplier or contractor for water,regardless of the basis of right,
which distributes or sells for ultimate resale to customers. This part applies only to
water supplied from public water systems subject to Chapter 4(commencing with •
Section 116275)of Part 12 of Division 104 of the Health and Safety Code.
CHAPTER 3.URBAN WATER MANAGEMENT PLANS
Article 1.General Provisions
10620.
(a) Every urban water supplier shall prepare and adopt an urban water
management plan in the manner set forth in Article 3(commencing with
Section 10640).
Califomia Urban Water Management Planning Act Page 3
July 5,2005
102
(b) Every person that becomes an urban water supplier shall adopt an urban
water management plan within one year after it has become an urban water
supplier.
(c) An urban water supplier indirectly providing water shall not include planning
elements in its water management plan as provided in Article 2
(commencing with Section 10630) that would be applicable to urban water
suppliers or public agencies directly providing water, or to their customers,
without the consent of those suppliers or public agencies.
(d)
(1) An urban water supplier may satisfy the requirements of this part by
participation in areawide, regional, watershed, or basinwide urban
water management planning where those plans will reduce preparation
costs and contribute to the achievement of conservation and efficient
water use.
(2) Each urban water supplier shall coordinate the preparation of its plan
with other appropriate agencies in the area, including other water
suppliers that share a common source, water management agencies,
and relevant public agencies, to the extent practicable.
(e) The urban water supplier may prepare the plan with its own staff, by
contract, or in cooperation with other governmental agencies.
(f) An urban water supplier shall describe in the plan water management tools
and options used by that entity that will maximize resources and minimize
the need to import water from other regions.
10621.
(a) Each urban water supplier shall update its plan at least once every five
years on or before December 31, in years ending in five and zero.
(b) Every urban water supplier required to prepare a plan pursuant to this part
shall notify any city or county within which the supplier provides water •
supplies that the urban water supplier will be reviewing the plan and •
considering amendments or changes to the plan. The urban water supplier
may consult with, and obtain comments from, any city or county that
receives notice pursuant to this subdivision.
(c) The amendments to, or changes in, the plan shall be adopted and filed in
the manner set forth in Article 3 (commencing with Section 10640).
Article 2. Contents of Plans
California Urban Water Management Planning Act Page 4
July 5,2005
103
10630. It is the intention of the Legislature, in enacting this part, to permit levels of
water management planning commensurate with the numbers of customers served and
the volume of water supplied.
10631. A plan shall be adopted in accordance with this chapter and shall do all of the
following:
(a) Describe the service area of the supplier, including current and projected
population, climate, and other demographic factors affecting the supplier's
water management planning. The projected population estimates shall be
based upon data from the state, regional, or local service agency population
projections within the service area of the urban water supplier and shall be
in five-year increments to 20 years or as far as data is available.
(b) Identify and quantify, to the extent practicable, the existing and planned
sources of water available to the supplier over the same five-year
increments described in subdivision (a). If groundwater is identified as an
existing or planned source of water available to the supplier, all of the
following information shall be included in the plan:
(1) A copy of any groundwater management plan adopted by the urban
water supplier, including plans adopted pursuant to Part 2.75
(commencing with Section 10750), or any other specific authorization
for groundwater management.
(2) A description of any groundwater basin or basins from which the
urban water supplier pumps groundwater. For those basins for which
a court or the board has adjudicated the rights to pump groundwater,
a copy of the order or decree adopted by the court or the board and a
description of the amount of groundwater the urban water supplier has
the legal right to pump under the order or decree.
For basins that have not been adjudicated, information as to whether
the department has identified the basin or basins as overdrafted or
has projected that the basin will become overdrafted if present
management conditions continue, in the most current official
departmental bulletin that characterizes the condition of the
groundwater basin, and a detailed description of the efforts being
undertaken by the urban water supplier to eliminate the long-term
overdraft condition.
(3) A detailed description and analysis of the location, amount, and
sufficiency of groundwater pumped by the urban water supplier for the
past five years. The description and analysis shall be based on
information that is reasonably available, including, but not limited to,
historic use records.
California Urban Water Management Planning Act Page 5 •
July 5,2005
104
(4) A detailed description and analysis of the amount and location of
groundwater that is projected to be pumped by the urban water
supplier. The description and analysis shall be based on information
that is reasonably available, including, but not limited to, historic use
records. •
(c) Describe the reliability of the water supply and vulnerability to seasonal or
climatic shortage, to the extent practicable, and provide data for each of the
following:
(1 ) An average water year.
(2) A single dry water year.
(3) Multiple dry water years.
For any water source that may not be available at a consistent level of use,
given specific legal, environmental, water quality, or climatic factors,
describe plans to supplement or replace that source with alternative
sources or water demand management measures, to the extent •
practicable.
(d) Describe the opportunities for exchanges or transfers of water on a short-
term or long-term basis.
(e)
(1 ) Quantify, to the extent records are available, past and current water -
use, over the same five-year increments described in subdivision (a),
and projected water use, identifying the uses among water use
sectors including, but not necessarily limited to, all of the following
uses:
(A) Single-family residential.
(B) Multifamily.
(C) Commercial.
(D) Industrial.
(E) Institutional and governmental.
(F) Landscape.
(G) Sales to other agencies.
(H) Saline water intrusion barriers, groundwater recharge, or
conjunctive use, or any combination thereof.
(I) Agricultural.
(2) The water use projections shall be in the same five-year increments
described in subdivision (a).
California Urban Water Management Planning Act Page 6
July 5, 2005
105
(f) Provide a description of the supplier's water demand management
measures. This description shall include all of the following:
(1) A description of each water demand management measure that is
currently being implemented,or scheduled for implementation,
including the steps necessary to implement any proposed measures,
including,but not limited to,all of the following:
(A) Water survey programs for single-family residential and
multifamily residential customers.
(B) Residential plumbing retrofit.
(C) System water audits,leak detection,and repair.
(D) Metering with commodity rates for all new connections and
retrofit of existing connections.
(E) Large landscape conservation programs and incentives.
(F) High-efficiency washing machine rebate programs.
(G) Public information programs.
(H) School education programs.
(I) Conservation programs for commercial,industrial,and
institutional accounts.
(J) Wholesale agency programs.
(K) Conservation pricing.
(L) Water conservation coordinator.
(M) Water waste prohibition.
(N) Residential ultra-low-flush toilet replacement programs.
(2) A schedule of implementation for all water demand management
measures proposed or described in the plan.
(3) A description of the methods,if any,that the supplier will use to
evaluate the effectiveness of water demand management measures
implemented or described under the plan.
California Urban Water Management Planning Act Page 7
July 5,2005
106
(4) An estimate, if available, of existing conservation savings on water use
within the supplier's service area, and the effect of the savings on the
supplier's ability to further reduce demand.
(g) An evaluation of each water demand management measure listed in
paragraph (1) of subdivision (f)that is not currently being implemented or
scheduled for implementation. In the course of the evaluation, first
consideration shall be given to water demand management measures, or
combination of measures, that offer lower incremental costs than expanded
or additional water supplies. This evaluation shall do all of the following:
(1) Take into account economic and noneconomic factors, including
environmental, social, health, customer impact, and technological
factors.
(2) Include a cost-benefit analysis, identifying total benefits and total
costs.
(3) Include a description of funding available to implement any planned
water supply project that would provide water at a higher unit cost.
(4) Include a description of the water supplier's legal authority to
implement the measure and efforts to work with other relevant
agencies to ensure the implementation of the measure and to share
the cost of implementation.
(h) Include a description of all water supply projects and water supply
programs that may be undertaken by the urban water supplier to meet the
total projected water use as established pursuant to subdivision (a)of
Section 10635. The urban water supplier shall include a detailed
description of expected future projects and programs, other than the
demand management programs identified pursuant to paragraph (1) of
subdivision (f), that the urban water supplier may implement to increase the
amount of the water supply available to the urban water supplier in
average, single-dry, and multiple-dry water years. The description shall
identify specific projects and include a description of the increase in water
supply that is expected to be available from each project. The description
shall include an estimate with regard to the implementation timeline for
each project or program.
(i) Describe the opportunities for development of desalinated water,
including, but not limited to, ocean water, brackish water, and
groundwater, as a long-term supply.
(j) Urban water suppliers that are members of the California Urban
Water Conservation Council and submit annual reports to that council
California Urban Water Management Planning Act Page 8
July 5,2005
107
in accordance with the "Memorandum of Understanding Regarding
Urban Water Conservation in California," dated September 1991, may
submit the annual reports identifying water demand management
measures currently being implemented, or scheduled for
implementation, to satisfy the requirements of subdivisions (f) and (g).
(k) Urban water suppliers that rely upon a wholesale agency for a
source of water, shall provide the wholesale agency with water use
projections from that agency for that source of water in five-year
increments to 20 years or as far as data is available. The wholesale
agency shall provide information to the urban water supplier for
inclusion in the urban water supplier's plan that identifies and
quantifies, to the extent practicable, the existing and planned
sources of water as required by subdivision (b), available from the
wholesale agency to the urban water supplier over the same five-year
increments, and during various water-year types in accordance with
subdivision (c). An urban water supplier may rely upon water supply
information provided by the wholesale agency in fulfilling the plan
informational requirements of subdivisions (b) and (c).
10631.5. The department shall take into consideration whether the urban water supplier
is implementing or scheduled for implementation, the water demand management
activities that the urban water supplier identified in its urban water management plan,
pursuant to Section 10631, in evaluating applications for grants and loans made
available pursuant to Section 79163. The urban water supplier may submit to the
department copies of its annual reports and other relevant documents to assist the
department in determining whether the urban water supplier is implementing or
scheduling the implementation of water demand management activities.
10632. The plan shall provide an urban water shortage contingency analysis which
includes each of the following elements which are within the authority of the urban water
supplier:
(a) Stages of action to be undertaken by the urban water supplier in response
to water supply shortages, including up to a 50 percent reduction in water
supply, and an outline of specific water supply conditions which are
applicable to each stage.
(b) An estimate of the minimum water supply available during each of the next
three water years based on the driest three-year historic sequence for the
agency's water supply.
(c) Actions to be undertaken by the urban water supplier to prepare for, and
implement during, a catastrophic interruption of water supplies including, •
but not limited to, a regional power outage, an earthquake, or other
disaster. •
California Urban Water Management Planning Act Page 9
July 5,2005
108
(d) Additional, mandatory prohibitions against specific water use practices
during water shortages, including, but not limited to, prohibiting the use of
potable water for street cleaning.
(e) Consumption reduction methods in the most restrictive stages. Each urban
water supplier may use any type of consumption reduction methods in its
water shortage contingency analysis that would reduce water use, are
appropriate for its area, and have the ability to achieve a water use
reduction consistent with up to a 50 percent reduction in water supply.
(f) Penalties or charges for excessive use, where applicable.
(g) An analysis of the impacts of each of the actions and conditions described
in subdivisions (a) to (f), inclusive, on the revenues and expenditures of the
urban water supplier, and proposed measures to overcome those impacts,
such as the development of reserves and rate adjustments.
(h) A draft water shortage contingency resolution or ordinance.
(I) A mechanism for determining actual reductions in water use pursuant to the
urban water shortage contingency analysis.
10633. The plan shall provide, to the extent available, information
on recycled water and its potential for use as a water source in the
service area of the urban water supplier. The preparation of the
plan shall be coordinated with local water, wastewater, groundwater,
and planning agencies that operate within the supplier's service
area, and shall include all of the following:
(a) A description of the wastewater collection and treatment
systems in the suppliers service area, including a quantification of •
the amount of wastewater collected and treated and the methods of
wastewater disposal.
(b) A description of the quantity of treated wastewater that meets
recycled water standards, is being discharged, and is otherwise •
•
available for use in a recycled water project.
•
(c) A description of the recycled water currently being used in
the supplier's service area, including, but not limited to, the type, •
place, and quantity of use.
(d) A description and quantification of the potential uses of •
recycled water, including, but not limited to, agricultural
irrigation, landscape irrigation, wildlife habitat enhancement,
•
California Urban Water Management Planning Act Page 10
July 5, 2005
109
wetlands,industrial reuse,groundwater recharge,and other
appropriate uses,and a determination with regard to the technical
and economic feasibility of serving those uses.
(e) The projected use of recycled water within the supplier's
service area at the end of 5, 10,15,and 20 years,and a description
of the actual use of recycled water in comparison to uses previously
projected pursuant to this subdivision.
(f) A description of actions,including financial incentives,
which may be taken to encourage the use of recycled water,and the
projected results of these actions in terms of acre-feet of recycled
water used per year.
(g) A plan for optimizing the use of recycled water in the
supplier's service area,including actions to facilitate the
installation of dual distribution systems,to promote recirculating
uses,to facilitate the increased use of treated wastewater that
meets recycled water standards,and to overcome any obstacles to
achieving that increased use.
10634. The plan shall include information,to the extent practicable,relating to the
quality of existing sources of water available to the supplier over the same five-year
increments as described in subdivision(a)of Section 10631,and the manner in which
water quality affects water management strategies and supply reliability.
Article 2.5 Water Service Reliability
10635.
(a) Every urban water supplier shall include,as part of its urban water
management plan,an assessment of the reliability of its water service to its
customers during normal,dry,and multiple dry water years. This water
supply and demand assessment shall compare the total water supply
sources available to the water supplier with the total projected water use
over the next 20 years,in five-year increments,for a normal water year,a
single dry water year,and multiple dry water years. The water service
reliability assessment shall be based upon the information compiled
pursuant to Section 10631,including available data from state,regional,or
local agency population projections within the service area of the urban
water supplier.
(b) The urban water supplier shall provide that portion of its urban water
management plan prepared pursuant to this article to any city or county
within which it provides water supplies no later than 60 days after the
submission of its urban water management plan.
California Urban Water Management Planning Act Page 11
July 5,2005
110
(c) Nothing in this article is intended to create a right or entitlement to water
service or any specific level of water service,
(d) Nothing in this article is intended to change existing law concerning an
urban water supplier's obligation to provide water service to its existing
customers or to any potential future customers.
Article 3. Adoption and Implementation of Plans
10640. Every urban water supplier required to prepare a plan pursuant to this part shall
prepare its plan pursuant to Article 2 (commencing with Section 10630).
The supplier shall likewise periodically review the plan as required by Section 10621,
and any amendments or changes required as a result of that review shall be adopted
pursuant to this article.
10641. An urban water supplier required to prepare a plan may consult with, and obtain
comments from, any public agency or state agency or any person who has special
expertise with respect to water demand management methods and techniques.
10642. Each urban water supplier shall encourage the active involvement of diverse
social, cultural, and economic elements of the population within the service area prior to
and during the preparation of the plan. Prior to adopting a plan, the urban water
supplier shall make the plan available for public inspection and shall hold a public
hearing thereon. Prior to the hearing, notice of the time and place of hearing shall be
published within the jurisdiction of the publicly owned water supplier pursuant to Section
6066 of the Government Code. The urban water supplier shall provide notice of the
time and place of hearing to any city or county within which the supplier provides water
supplies. A privately owned water supplier shall provide an equivalent notice within its
service area. After the hearing, the plan shall be adopted as prepared or as modified
after the hearing.
•
•
10643. An urban water supplier shall implement its plan adopted pursuant to this
chapter in accordance with the schedule set forth in its plan. •
10644.
(a) An urban water supplier shall submit to the department,
the California State Library, and any city or county within which the
supplier provides water supplies a copy of its plan no later than 30
days after adoption. Copies of amendments or changes to the plans
shall be submitted to the department, the California State Library,
and any city or county within which the supplier provides water
supplies within 30 days after adoption.
California Urban Water Management Planning Act Page 12
Juty 5,2005
111
(b) The department shall prepare and submit to the Legislature, on or before
December 31, in the years ending in six and one, a report summarizing the
status of the plans adopted pursuant to this part. The report prepared by the
department shall identify the outstanding elements of the individual plans.
The department shall provide a copy of the report to each urban water
supplier that has submitted its plan to the department. The department shall
also prepare reports and provide data for any legislative hearings designed
to consider the effectiveness of plans submitted pursuant to this part.
10645. Not later than 30 days after filing a copy of its plan with the department, the
urban water supplier and the department shall make the plan available for public review
during normal business hours.
CHAPTER 4. MISCELLANEOUS PROVISIONS
10650. Any actions or proceedings to attack, review, set aside, void, or annul the acts
or decisions of an urban water supplier on the grounds of noncompliance with this part
shall be commenced as follows:
(a) An action or proceeding alleging failure to adopt a plan shall be commenced
within 18 months after that adoption is required by this part.
(b) Any action or proceeding alleging that a plan, or action taken pursuant to
the plan, does not comply with this part shall be commenced within 90 days
after filing of the plan or amendment thereto pursuant to Section 10614 or
the taking of that action.
10651. In any action or proceeding to attack, review, set aside, void, or annul a plan, or
an action taken pursuant to the plan by an urban water supplier on the grounds of
noncompliance with this part, the inquiry shall extend only to whether there was a
prejudicial abuse of discretion. Abuse of discretion is established if the supplier has not
proceeded in a manner required by law or if the action by the water supplier is not
supported by substantial evidence.
10652. The California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code) does not apply to the preparation and
adoption of plans pursuant to this part or to the implementation of actions taken
pursuant to Section 10632. Nothing in this part shall be interpreted as exempting from
•
the California Environmental Quality Act any project that would significantly affect water
supplies for fish and wildlife, or any project for implementation of the plan, other than
projects implementing Section 10632, or any project for expanded or additional water
supplies.
10653. The adoption of a plan shall satisfy any requirements of state law, regulation, or
order, including those of the State Water Resources Control Board and the Public
California Urban Water Management Planning Act Page 13
July 5,2005
112
Utilities Commission, for the preparation of water management plans or conservation
plans; provided, that if the State Water Resources Control Board or the Public Utilities
Commission requires additional information concerning water conservation to
implement its existing authority, nothing in this part shall be deemed to limit the board or
the commission in obtaining that information. The requirements of this part shall be
satisfied by any urban water demand management plan prepared to meet federal laws
or regulations after the effective date of this part, and which substantially meets the
requirements of this part, or by any existing urban water management plan which
includes the contents of a plan required under this part.
10654. An urban water supplier may recover in its rates the costs incurred in preparing
its plan and implementing the reasonable water conservation measures included in the
plan. Any best water management practice that is included in the plan that is identified
in the "Memorandum of Understanding Regarding Urban Water Conservation in
California" is deemed to be reasonable for the purposes of this section.
10655. If any provision of this part or the application thereof to any person or
circumstances is held invalid, that invalidity shall not affect other provisions or
applications of this part which can be given effect without the invalid provision or
application thereof, and to this end the provisions of this part are severable.
10656. An urban water supplier that does not prepare, adopt, and submit its urban
water management plan to the department in accordance with this part, is ineligible to
receive funding pursuant to Division 24 (commencing with Section 78500) or Division 26
(commencing with Section 79000), or receive drought assistance from the state until the
urban water management plan is submitted pursuant to this article.
10657. •
(a) The department shall take into consideration whether the urban water
supplier has submitted an updated urban water management plan that is •
consistent with Section 10631 , as amended by the act that adds this
section, in determining whether the urban water supplier is eligible for funds
•
made available pursuant to any program administered by the department.
(b) This section shall remain in effect only until January 1 , 2006, and as of that
date is repealed, unless a later enacted statute, that is enacted before
January 1 , 2006, deletes or extends that date.
California Urban Water Management Planning Act Page 14
July 5, 2005
113
ATTACHMENT B
114
ATTACHMENT B
CITY OF AZUSA
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 20by and
between the City of Azusa, a municipal organization organized under the laws of the State of
California with its principal place of business at 213 East Foothill Boulevard, Azusa, California
91702-1295 ("City") and [ INSERT NAME ], a [ [INSERT TYPE OF ENTITY -
CORPORATION, PARTNERSHIP, SOLE PROPRIETORSHIP OR OTHER LEGAL ENTITY] ]
with its principal place of business at [ INSERT ADDRESS ] ("Consultant"). City and
Consultant are sometimes individually referred to as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the City on the terms and conditions set forth in this Agreement.
Consultant represents that it is experienced in providing [ INSERT TYPE OF SERVICES ]
services to public clients, is licensed in the State of California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services for the [ INSERT NAME OF
PROJECT ] project ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the
City all labor, materials, tools, equipment, services, and incidental and customary work necessary to
fully and adequately supply the professional [ INSERT TYPE OF SERVICES ] consulting
services necessary for the Project ("Services"). The Services are more particularly described in
Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to,
and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated
herein by reference, and all applicable local, state and federal laws, rules and regulations.
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3.1.2 Term. The term of this Agreement shall be from [ INSERT START
DATE_] to [_INSERT ENDING DATE_], unless earlier terminated as provided herein.
Consultant shall complete the Services within the term of this Agreement, and shall meet any other
established schedules and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates;Independent Contractor. The Services
shall be performed by Consultant or under its supervision. Consultant will determine the means,
methods and details of performing the Services subject to the requirements of this Agreement. City
retains Consultant on an independent contractor basis and not as an employee. Consultant retains the
right to perform similar or different services for others during the term of this Agreement. Any
additional personnel performing the Services under this Agreement on behalf of Consultant shall also
not be employees of City and shall at all times be under Consultant's exclusive direction and control.
Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with
their performance of Services under this Agreement and as required by law. Consultant shall be
responsible for all reports and obligations respecting such additional personnel, including, but not
limited to: social security taxes, income tax withholding, unemployment insurance, disability
insurance, and workers' compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously,
within the term of this Agreement, and in accordance with the Schedule of Services set forth in
Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has
the professional and technical personnel required to perform the Services in conformance with such
conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to
Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more
detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant
shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain
key personnel will perform and coordinate the Services under this Agreement. Should one or more
of such personnel become unavailable, Consultant may substitute other personnel of at least equal
competence upon written approval of City. In the event that City and Consultant cannot agree as to
the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As
discussed below,any personnel who fail or refuse to perform the Services in a manner acceptable to
the City, or who are determined by the City to be uncooperative, incompetent, a threat to the
adequate or timely completion of the Project or a threat to the safety of persons or property, shall be
promptly removed from the Project by the Consultant at the request of the City. The key personnel
for performance of this Agreement are as follows: [ INSERT NAMES_].
3.2.5 City's Representative. The City hereby designates [ INSERT NAME OR
TITLE ],or his or her designee,to act as its representative for the performance of this Agreement
("City's Representative"). City's Representative shall have the power to act on behalf of the City for
all purposes under this Contract. Consultant shall not accept direction or orders from any person
other than the City's Representative or his or her designee.
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3.2.6 Consultant's Representative. Consultant hereby designates [_INSERT
NAME OR TITLE_],or his or her designee,to act as its representative for the performance of this
Agreement("Consultant's Representative"). Consultant's Representative shall have full authority to
represent and act on behalf of the Consultant for all purposes under this Agreement. The
Consultant's Representative shall supervise and direct the Services,using his best skill and attention,
and shall be responsible for all means, methods, techniques, sequences and procedures and for the
satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in
the performance of Services and shall be available to City's staff, consultants and other staff at all
reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all
Services under this Agreement in a skillful and competent manner, consistent with the standards
generally recognized as being employed by professionals in the same discipline in the State of
California. Consultant represents and maintains that it is skilled in the professional calling necessary
to perform the Services. Consultant warrants that all employees and subcontractors shall have
sufficient skill and experience to perform the Services assigned to them. Finally, Consultant
represents that it, its employees and subcontractors have all licenses, permits, qualifications and
approvals of whatever nature that are legally required to perform the Services, including a City
Business License, and that such licenses and approvals shall be maintained throughout the term of
this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant
shall perform, at its own cost and expense and without reimbursement from the City, any services
necessary to correct errors or omissions which are caused by the Consultant's failure to comply with
the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who
is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely
completion of the Project, a threat to the safety of persons or property,or any employee who fails or
refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from
the Project by the Consultant and shall not be re-employed to perform any of the Services or to work
on the Project.
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in
compliance with all local, state and federal laws, rules and regulations in any manner affecting the
performance of the Project or the Services,including all Cal/OSHA requirements,and shall give all
notices required by law. Consultant shall be liable for all violations of such laws and regulations in
connection with Services. If the Consultant performs any work knowing it to be contrary to such
laws,rules and regulations and without giving written notice to the City,Consultant shall be solely
responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its
officials,directors,officers,employees and agents free and harmless,pursuant to the indemnification
provisions of this Agreement,from any claim or liability arising out of any failure or alleged failure
to comply with such laws, rules or regulations.
3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence Work
under this Agreement until it has provided evidence satisfactory to the City that it has secured all
i
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insurance required under this section. In addition, Consultant shall not allow any subcontractor to
commence work on any subcontract until it has provided evidence satisfactory to the City that the
subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the
Agreement by the Consultant,its agents,representatives,employees or subcontractors. Consultant
shall also require all of its subcontractors to procure and maintain the same insurance for the duration
of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and
(3) Workers' Compensation and Employer's Liability:Workers' Compensation insurance as required
by the State of California and Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with general
aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2)
Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers'Compensation and Employer's Liability:Workers' Compensation limits as required by the
Labor Code of the State of California. Employer's Liability limits of$1,000,000 per accident for
bodily injury or disease.
3.2.10.3 Professional Liability. [INCLUDE ONLY IF APPLICABLE
-DELETE OTHERWISE] Consultant shall procure and maintain,and require its sub-consultants
to procure and maintain,for a period of five(5)years following completion of the Project,errors and
omissions liability insurance appropriate to their profession. Such insurance shall be in an amount
not less than $1,000,000 [INCREASE IF NECESSARY - OTHERWISE LEAVE AS IS AND
DELETE THIS NOTE] per claim, and shall be endorsed to include contractual liability.
3.2.10.4 Insurance Endorsements. The insurance policies shall contain
the following provisions, or Consultant shall provide endorsements on forms supplied or approved
by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be endorsed
to state that: (1)the City, its directors,officials,officers,employees, agents and volunteers shall be
covered as additional insured with respect to the Work or operations performed by or on behalf of
the Consultant,including materials,parts or equipment furnished in connection with such work;and
(2) the insurance coverage shall be primary insurance as respects the City, its directors, officials,
officers,employees,agents and volunteers,or if excess,shall stand in an unbroken chain of coverage
excess of the Consultant's scheduled underlying coverage. Any insurance or self-insurance
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maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be
excess of the Consultant's insurance and shall not be called upon to contribute with it in any way.
(B) Automobile Liability. The automobile liability policy shall be
endorsed to state that: (1)the City,its directors,officials,officers,employees,agents and volunteers
shall be covered as additional insureds with respect to the ownership, operation,maintenance, use,
loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which
the Consultant is responsible; and(2)the insurance coverage shall be primary insurance as respects
the City,its directors,officials,officers,employees,agents and volunteers,or if excess,shall stand in
an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage. Any
insurance or self-insurance maintained by the City,its directors,officials,officers,employees,agents
and volunteers shall be excess of the Consultant's insurance and shall not be called upon to
contribute with it in any way.
(C) Workers' Compensation and Employers Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the City, its directors, officials,
officers, employees, agents and volunteers for losses paid under the terms of the insurance policy
which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A)coverage shall not be suspended, voided,reduced or
canceled except after thirty(30)days prior written notice by certified mail,return receipt requested,
has been given to the City; and (B) any failure to comply with reporting or other provisions of the
policies, including breaches of warranties, shall not affect coverage provided to the City, its
directors, officials, officers, employees, agents and volunteers.
3.2.10.5 Separation of Insureds;No Special Limitations. All insurance
required by this Section shall contain standard separation of insureds provisions. In addition, such
insurance shall not contain any special limitations on the scope of protection afforded to the City,its
directors, officials, officers, employees, agents and volunteers.
3.2.10.6 Deductibles and Self-Insurance Retentions. Any deductibles or
self-insured retentions must be declared to and approved by the City. Consultant shall guarantee
that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or
self-insured retentions as respects the City, its directors, officials, officers, employees, agents and
volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related
investigation costs, claims and administrative and defense expenses.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII,licensed to do business in California,
and satisfactory to the City.
3.2.10.8 Verification of Coverage. Consultant shall furnish City with
original certificates of insurance and endorsements effecting coverage required by this Agreement on
forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be
signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms
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provided by the City if requested. All certificates and endorsements must be received and approved
by the City before work commences. The City reserves the right to require complete,certified copies
of all required insurance policies, at any time.
3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or
damage to any person or property. In carrying out its Services,the Consultant shall at all times be in
compliance with all applicable local,state and federal laws,rules and regulations,and shall exercise
all necessary precautions for the safety of employees appropriate to the nature of the work and the
conditions under which the work is to be performed. Safety precautions as applicable shall include,
but shall not be limited to: (A) adequate life protection and life saving equipment and procedures;
(B)instructions in accident prevention for all employees and subcontractors,such as safe walkways,
scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and
shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or
lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper
inspection and maintenance of all safety measures.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation,including authorized
reimbursements,for all Services rendered under this Agreement at the rates set forth in Exhibit "C"
attached hereto and incorporated herein by reference. The total compensation shall not exceed
[ INSERT WRITTEN DOLLAR AMOUNT ] ($[ INSERT NUMERICAL DOLLAR
AMOUNT ]) without written approval of City's . Extra Work may be
authorized, as described below, and if authorized, will be compensated at the rates and manner set
forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by Consultant.
The statement shall describe the amount of Services and supplies provided since the initial
commencement date,or since the start of the subsequent billing periods,as appropriate,through the
date of the statement. City shall, within 45 days of receiving such statement, review the statement
and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement,City may request
that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is
determined by City to be necessary for the proper completion of the Project,but which the parties did
not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall
not perform, nor be compensated for, Extra Work without written authorization from City's
Representative.
3.3.5 Prevailing Wages. Consultant is aware of the requirements of California
Labor Code Section 1720,et seg.,and 1770,et seq.,as well as California Code of Regulations,Title
8, Section 1600, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage
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rates and the performance of other requirements on "public works" and "maintenance" projects. If
the Services are being performed as part of an applicable"public works"or"maintenance"project,as
defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant
agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy
of the prevailing rates of per diem wages in effect at the commencement of this Agreement.
Consultant shall make copies of the prevailing rates of per diem wages for each craft,classification
or type of worker needed to execute the Services available to interested parties upon request, and
shall post copies at the Consultant's principal place of business and at the project site. Consultant
shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free
and harmless from any claim or liability arising out of any failure or alleged failure to comply with
the Prevailing Wage Laws.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records shall
be clearly identifiable. Consultant shall allow a representative of City during normal business hours
to examine, audit, and make transcripts or copies of such records and any other documents created
pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents,
proceedings, and activities related to the Agreement for a period of three (3) years from the date of
final payment under this Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may,by written notice to Consultant,
terminate the whole or any part of this Agreement at any time and without cause by giving written
notice to Consultant of such termination,and specifying the effective date thereof,at least seven(7)
days before the effective date of such termination. Upon termination, Consultant shall be
compensated only for those services which have been adequately rendered to City, and Consultant
shall be entitled to no further compensation. Consultant may not terminate this Agreement except
for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided
herein, City may require Consultant to provide all finished or unfinished Documents and Data and
other information of any kind prepared by Consultant in connection with the performance of Services
under this Agreement. Consultant shall be required to provide such document and other information
within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in
whole or in part as provided herein,City may procure,upon such terms and in such manner as it may
determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this Agreement
shall be given to the respective parties at the following address, or at such other address as the
respective parties may provide in writing for this purpose:
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Consultant:
[ INSERT NAME, ADDRESS & CONTACT PERSON ]
City:
City of Azusa
213 East Foothill Blvd.
Azusa, CA 91702-1295
Attn: [ INSERT NAME& DEPARTMENT_]
Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48)hours after deposit in the U.S. Mail,first class postage prepaid and addressed to the party at its
applicable address. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents & Data; Licensing of Intellectual Property. This
Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications, studies,drawings,estimates, and other documents or works of authorship fixed in any
tangible medium of expression,including but not limited to,physical drawings or data magnetically
or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by
Consultant under this Agreement("Documents&Data"). Consultant shall require all subcontractors
to agree in writing that City is granted a non-exclusive and perpetual license for any Documents &
Data the subcontractor prepares under this Agreement. Consultant represents and warrants that
Consultant has the legal right to license any and all Documents &Data. Consultant makes no such
representation and warranty in regard to Documents & Data which were prepared by design
professionals other than Consultant or provided to Consultant by the City. City shall not be limited
in any way in its use of the Documents and Data at any time, provided that any such use not within
the purposes intended by this Agreement shall be at City's sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans,
procedures,drawings,descriptions,computer program data,input record data,written information,
and other Documents and Data either created by or provided to Consultant in connection with the
performance of this Agreement shall be held confidential by Consultant. Such materials shall not,
without the prior written consent of City, be used by Consultant for any purposes other than the
performance of the Services. Nor shall such materials be disclosed to any person or entity not
connected with the performance of the Services or the Project. Nothing furnished to Consultant
which is otherwise known to Consultant or is generally known,or has become known,to the related
industry shall be deemed confidential. Consultant shall not use City's name or insignia,photographs
of the Project,or any publicity pertaining to the Services or the Project in any magazine,trade paper,
8
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newspaper,television or radio production or other similar medium without the prior written consent
of City.
3.5.4 Cooperation;Further Acts. The Parties shall fully cooperate with one another,
and shall take any additional acts or sign any additional documents as may be necessary,appropriate
or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either party commences an action against the other party,
either legal, administrative or otherwise, arising out of or in connection with this Agreement, the
prevailing party in such litigation shall be entitled to have and recover from the losing party reason-
able attorney's fees and all other costs of such action.
3.5.6 Indemnification. Consultant shall defend, indemnify and hold the City,its officials,
officers, employees, volunteers and agents free and harmless from any and all claims, demands,
causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or
persons, including wrongful death, in any manner arising out of or incident to any alleged acts,
omissions or willful misconduct of Consultant,its officials,officers,employees,agents,consultants
and contractors arising out of or in connection with the performance of the Services, the Project or
this Agreement,including without limitation the payment of all consequential damages and attorneys
fees and other related costs and expenses.Consultant shall defend,at Consultant's own cost,expense
and risk,any and all such aforesaid suits,actions or other legal proceedings of every kind that may be
brought or instituted against City, its directors, officials, officers, employees, agents or volunteers.
Consultant shall pay and satisfy any judgment,award or decree that may be rendered against City or
its directors,officials,officers,employees, agents or volunteers,in any such suit,action or other legal
proceeding. Consultant shall reimburse City and its directors,officials,officers,employees, agents
and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall
not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers,
employees, agents or volunteers. [***IF FOR DESIGN PROFESSIONAL SERVICES
(ARCHITECT, LANDSCAPE ARCHITECT, ENGINEER OR LAND SURVEYOR), USE
THE FOLLOWING ALTERNATIVE LANGUAGE AND DELETE THE ABOVE
LANGUAGE. To the fullest extent permitted by law,Contractor shall defend,indemnify and hold
the City,its officials,officers,employees,volunteers,and agents free and harmless from any and all
claims,demands,causes of action,costs,expenses,liability,loss,damage or injury,in law or equity,
to property or persons, including wrongful death, in any manner arising out of, pertaining to, or
relating to any negligence,errors or omissions,recklessness,or willful misconduct of Contractor,its
officials, officers, employees, agents, consultants, and contractors arising out of or in connection
with the performance of the Contractor's Services, including without limitation the payment of all
consequential damages,expert witness fees,and attorneys fees and other related costs and expenses.
Contractor shall defend,at Contractor's own cost,expense and risk,any and all such aforesaid suits,
actions or other legal proceedings of every kind that may be brought or instituted against City, its
directors, officials, officers, employees, agents, or volunteers. Contractor shall pay and satisfy any
judgment, award or decree that may be rendered against City or its directors, officials, officers,
employees, agents,or volunteers,in any such suit,action or other legal proceeding. Contractor shall
reimburse City and its directors,officials,officers,employees,agents,and/or volunteers,for any and
all legal expenses and costs incurred by each of them in connection therewith or in enforcing the
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indemnity herein provided. Contractor's obligation to indemnify shall not be restricted to insurance
proceeds, if any, received by the City, its directors, officials officers, employees, agents, or
volunteers.***]
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by both
parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of
California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of this
Agreement.
3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other
consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the successors
and assigns of the parties.
3.5.12 Assignment or Transfer. Consultant shall not assign,hypothecate,or transfer,
either directly or by operation of law,this Agreement or any interest herein without the prior written
consent of the City. Any attempt to do so shall be null and void,and any assignees,hypothecates or
transferees shall acquire no right or interest by reason of such attempted assignment,hypothecation
or transfer.
3.5.13 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any term
referencing time,days or period for performance shall be deemed calendar days and not work days.
All references to Consultant include all personnel, employees, agents, and subcontractors of
Consultant, except as otherwise specified in this Agreement. All references to City include its
elected officials, officers, employees, agents, and volunteers except as otherwise specified in this
Agreement. The captions of the various articles and paragraphs are for convenience and ease of
reference only, and do not define, limit, augment, or describe the scope, content, or intent of this
Agreement.
3.5.14 Amendment;Modification. No supplement,modification,or amendment of
this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach,whether of the same or other covenant or condition. No waiver,benefit,privilege,
or service voluntarily given or performed by a Party shall give the other Party any contractual rights
by custom, estoppel, or otherwise.
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3.5.16 No Third Party Beneficiaries. There are no intended third party beneficiaries
of any right or obligation assumed by the Parties.
3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions
shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely for
Consultant,to solicit or secure this Agreement. Further,Consultant warrants that it has not paid nor
has it agreed to pay any company or person, other than a bona fide employee working solely for
Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent
upon or resulting from the award or making of this Agreement. For breach or violation of this
warranty, City shall have the right to rescind this Agreement without liability. For the term of this
Agreement,no member,officer or employee of City,during the term of his or her service with City,
shall have any direct interest in this Agreement,or obtain any present or anticipated material benefit
arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor,employee or applicant
for employment because of race,religion,color,national origin,handicap,ancestry,sex or age. Such
non-discrimination shall include, but not be limited to, all activities related to initial employment,
upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise
program, Affirmative Action Plan or other related programs or guidelines currently in effect or
hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder,Consultant certifies that it is
aware of the provisions of Section 3700 of the California Labor Code which require every employer
to be insured against liability for Worker's Compensation or to undertake self-insurance in
accordance with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement may be signed in counterparts,each of which
shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the
work required by this Agreement,except as expressly stated herein,without prior written approval of
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125.
City. Subcontracts,if any, shall contain a provision making them subject to all provisions stipulated
in this Agreement.
[SIGNATURES ON FOLLOWING PAGE]
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CITY OF AZUSA [INSERT NAME OF CONSULTANT]
By: By:
City Manager [Name]
[Title]
Attest:
Vera, Mendoza
City Clerk
Approved as to Form:
Best Best & Krieger LLP
City Attorney
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RVPUB\NSTUBBS\684961.2
127
EXHIBIT "A"
SCOPE OF SERVICES
[INSERT SCOPE]
A-1
RVPUB\NSTUBBS\684961.2 128
EXHIBIT "B"
SCHEDULE OF SERVICES
[INSERT SCHEDULE]
B-1
RVPUB\NSTUBBS\684961.2
129
EXHIBIT "C"
COMPENSATION
[INSERT RATES & AUTHORIZED REIMBURSABLE EXPENSES]
C-1
KVNW§ 0\684961.2
130
1
AZUSA
.IG87 A 'WATER
SCHEDULED ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE • 6 SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES '
DATE: SEPTEMBER 27, 2010
SUBJECT: ELECTRIC FUND RESERVE POLICY UPDATE
RECOMMENDATION
It is recommended that the Azusa Utility Board approve the attached resolution adopting a
revised reserve policy formula for Electric Fund.
BACKGROUND
During FY 2009-10, the Utilities Board approved selection of a proposal by Utility Financial
Solutions, LLC, (UFS) to conduct a financial review of the Electric Utility. One
recommendation by UFS was to modify the current reserve policy formula for the Electric fund
which results in a minimum reserve requirement for FY 2010-11, of$12.6 million. The rationale
for the reserve policy formula is based on the following analysis as set forth in the consultant
report:
• Working Capital Lag - Timing differences between when expenses are incurred and
revenues received from customers. Establishing a minimum cash reserve helps to
ensure cash exists to pay expenses in a timely manner. The calculation used 25% of
Operations and Maintenance Budget to account for this, which is equal to
approximately 90 days of operating expenses. (90 days operating reserve is preferred
by credit rating agencies.)
• Investment in Assets —Catastrophic events may occur that require substantial amounts
of cash reserves to replace damaged assets. Some examples of catastrophic events
include earthquakes, wind storms, fires and floods. Many of these catastrophic events
may allow the utility to recover the cost of damages from FEMA; however FEMA
reimbursements can take between 6 months to 2 years. The utility should ensure
adequate cash reserves exist to replace the assets in a timely fashion. The minimum
reserve levels are often combined with emergency funding from banks or bonding
agencies. The calculation used 3% of historical asset base to account for this.
131
Electric Fund Reserve Policy FY 2010-11
September 27,2010
Page 2
• Annual Debt Service — The utility has to ensure adequate cash reserves exist to fund
the debt service payment when the payment is due. The debt service payment for the
fiscal year is allocated at 100% for the calculation.
• Capital Improvement Program — Some capital improvements are funded through
bond issuances and some through revenues or cash reserves. The establishment of a
minimum cash reserve level helps to ensure timely replacement or construction of
assets. The calculation used 15% of this year's capital improvement plan and 15% of
the five-year capital plan to accommodate for projects in the annual capital
improvement program.
For reference, the current reserve policy is approximately $20 million, and staff believes that it is
desirable to retain this higher reserve level as a longer term goal. At the end of FY 2008-09, Cash
and Investments plus cash in Rate Stabilization Fund amounted to $14,454,395, according to the
Comprehensive Annual Financial Report. With a projected cash imbalance of about $3.4 million
during FY 2009-10, reserves are expected to be about $11.1 million on July 1, 2010. Hence the
proposed reserve policy is $1.5 million higher than existing estimated cash.
Ordinarily setting a reserve policy higher than the current cash reserve level would trigger
corrective actions. However, some corrective actions have already been taken. For instance, the
Utility Board adopted a 9.3% rate increase in December 2009 and a Power Cost Adjustment
(PCA) mechanism in June 2010. Also, net purchase power costs this fiscal year are projected to
be lower than last fiscal year. Moreover, section 1C of Resolution No. 04-C37, requires that
there be positive net income before interest income can be transferred from the Electric Fund to
the Utilities Mitigation Fund. Collectively, these actions are expected to combine to minimize
reductions in existing reserves and close the budget gap for fiscal year 2010-11.
A continuing lag in the economy and milder weather could reduce retail revenues and alter our
FY 2010-11 forecast. In this regard, for example, retail electric sales were down 3% in FY 2009-
10 from the prior year. However, staff will monitor expenses and revenues of the Electric fund
closely and may propose base rate adjustments or capital spending cuts at a later time if
necessary. It should be noted here that while Utility Financial Solutions recommended base rate
increase of 2.5% in the fall of this FY, this is not being proposed by staff at this time.
FISCAL IMPACT
There is no impact of adopting the proposed reserve policy at this time.
Prepared by: Cary Kalscheuer, Assistant to the Director of Utilities
Attachments:
Reserve Policy Resolution for FY 2010-11
Resolution 04-C37
132
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, SETTING CERTAIN
RESERVE POLICIES FOR THE ELECTRIC UTILITY
ENTERPRISE FUND.
WHEREAS, the Utility Board approved a proposal by Utility Financial Solutions to
perform a study to determine, among other things, a prudent and appropriate level of cash
reserves for the City's Electric Utility; and
WHEREAS, Utility Financial Services completed its study in June 2010 and recommends
that the City of Azusa establish a minimum cash reserve using attached formula in Exhibit A;
and
WHEREAS, Utilities Department staff have reviewed the recommended reserve policy
formula and consider it to be reasonable at setting a minimum reserve for the Electric Utility; and
WHEREAS, the proposed Electric Utility reserve policy formula results in a minimum
reserve for the Electric fund of$12.6 million for FY 2010-11; and
WHEREAS, the estimated existing cash reserve level is about $11.1 million, which is
below the minimum reserve target; and
WHEREAS, the Utility Board has taken corrective action to address the existing financial
condition by(1) adopting a 9.3% rate increase effective December 1, 2009, and (2) adopting a
new Power Cost Adjustment mechanism effective July 1, 2010; and
WHEREAS, the forecasted cost for purchase power is expected to be lower in FY 2010-
11 than in prior Fiscal Years; and
WHEREAS, said corrective rate adjustment actions combined with lower purchased
power costs are expected to prevent further reductions in existing cash reserves.
NOW, THEREFORE, THE AZUSA UTILITY BOARD OF THE CITY OF AZUSA DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That Exhibit A is adopted as the Electric Utility's reserve policy formula
for the Electric Fund.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS 27th day of September, 2010.
Joseph Rocha, Mayor
133
ATTEST:
Vera Mendoza, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City
Council of the City of Azusa at a regular meeting of the Azusa Light & Water Utility Board on
the 27th day of September, 2010.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Vera Mendoza, City Clerk
134
EXHIBIT A
ELECTRIC UTILITY'S RESERVE POLICY FOR FY 2010-11
Minimum Cash Reserve Target
The following bases and percentages shall be used to formulate the Electric Utility's reserve on fiscal year
basis:
ELECTRIC FUND RESERVE FORMULA/FY 2010-11 AMOUNTS
Percent FY 2010-11 FY 2010-11
Description of Base of Base Base Reserve
Operations and Maintenance Budget including Power Supply Costs 25% $39,469,954 $9,867,489
Historic Rate Base or System Assets 3% 46,448,227 1,393,447
Debt Service Reserve 100% 973,151 973,151
Fiscal Year Capital Improvement Program Budget 15% 372,200 55,830
Five Year Capital Improvement Program Budget 15% 1,861,000 279,150
TOTAL Minimum Reserve Target: 100% N/A $12,569,066
Estimated Current Reserve Level
The Statement of Net Assets shall be used as a baseline to measure and forecast reserves. The sum of
"Cash and Investments"and"Cash held for rate stabilization"on Statement of Net Assets shall be
considered as constituting cash reserves. Net changes in cash flow shall be used to forecast reserve levels
for periods following the last Comprehensive Annual Financial Report(CAFR).
FY 2008-09 (CAFR)
Cash and Investments 5,228,770
Cash held for Rate Stabilization 9,316,625
Total: 14,545,395
FY 2009-10
Estimated Net Change in Cash Flow: (3,444,214)
FY 2010-11
Estimated Beginning Fiscal Year Cash Reserve: 11,101,181
Reporting Trigger
If a Reserve Deficiency exists that is 10% below the minimum Reserve Target, Azusa Light &Water staff
shall formulate a report to the Utility Board and list corrective actions. Percent below Minimum Reserve
Target shall be calculated using following formula:
EBFYCR /RT— 1 =PT
Where:
EBFYCR is equal to the Estimated Beginning Fiscal Year Cash Reserve as calculated using Estimated
Current Reserve Level as noted above.
RT is Reserve Target using Minimum Cash Reserve Target formula noted above.
PT means Percent Trigger.
135
Trigger Test
$11,101,181 /$12,569,066— 1 = -11.67%
Above test triggers reporting requirement since
Estimated Current Reserve Level is more than -10% below Reserve Target.
Corrective Actions
Since the current cash reserve is estimated to be more that 10 percent below the Minimum Reserve Target
for FY 2010-11, the following actions shall be considered as corrective measures:
1. The 9.3% rate increase effective December 1, 2009;
2. Power Cost Adjustment mechanism effective July 1, 2010;
3. Purchased power costs are expected to be lower in FY 2010-11 than in FY 2009-10;
4. Staff shall monitor cash flow on quarterly basis and recommend any changes in base rates or
expenditures in order to meet the minimum reserve target by fiscal year end, June 30, 2011.
# # #
136
RESOLUTION NO.04- C37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA,ESTABLISHING A POLICY CONCERNING THE OBLIGATIONS
OF THE CITY'S ELECTRIC UTILITY OPERATIONS TO COVER GENERAL
FUND SUPPORT SERVICE COSTS AND OTHERWISE PAY ITS FAIR SHARE
OF CAPITAL IMPROVEMENT COSTS FOR INFRASTRUCTURE IMPACTED BY
UTILITY OPERATIONS
WHEREAS,the City Council of the City of Azusa serving as the City's Utility
Board met on February 23,2004,to discuss the City's General Fund support
services costs related to the City's various utility operations;and
WHEREAS,the City Council desires that the General Fund fully recover all direct
and indirect support service costs and any and all other"franchise fees"or
allocations authorized by law;and
WHEREAS,the City Council desires that the methodology to allocate support
service costs be consistent with the City's guiding principles that the allocations
be administratively simple,fair,transparent and predictable;and
WHEREAS,the City Council has determined that a combination of statutory
franchise fees,an in-lieu property franchise fee applicable to the electric utility
("Electric Utility"),interest income sharing with the General Fund and direct
support service cost allocation reimbursements are consistent with the City's
guiding principles;and
WHEREAS,in August 2003 the City has entered into Series B and C Installment
Sales Agreements("Agreements")with the Financing Authority for Resource
Efficiency of California("FARECaI")in connection with the issuances of Series B
and C Certificate of Participation for the Electric Utility;and
WHEREAS,the Agreements established flow of revenue covenants in the use of
Electric Utility's GROSS REVENUES as such term is defined in the Agreements;
and
WHEREAS,the electric fund transfers to the General Fund contemplated herein
further incorporate by reference the principles outlined in the flow of revenue
covenants of the Agreements;
NOW THEREFORE,THE CITY COUNCIL DOES HEREBY RESOLVE AS
FOLLOWS:
SECTION 1. The City Council hereby authorizes the following allocation
transfers from the Electric Utility Fund to the General Fund:
137
A. In accordance with the California Public Utilities Code provisions related to
the establishment of franchise fees by general law cities, the Electric Utility
shall pay a franchise fee of two (2) percent on retail electric sales to the
General Fund. Such franchise fees shall be considered as Operation and
Maintenance Expenses as such term is defined in the Agreements.
B. Because the Electric Utility operations do not otherwise incur operating costs
related to the payment of property and other taxes like that of a private utility
operation, the use of property that would otherwise be available to private
users subject to such property and other taxes is a direct loss of revenue to
the City's General Fund. As Electric Utility rates are exempt from the
provisions of Proposition 218 the City Council finds that it is reasonable and
fair that the Electric Utility pay an in-lieu fee of up to eight (8) percent on retail
electric sales to the General Fund. Such in-lieu fees shall not be considered
as Operation and Maintenance Expenses as such term is defined in the
Agreements.
C. For Fiscal Year 2004-05, the Electric Utility shall contribute interest earned on
those Electric Utility reserve funds on a quarterly basis. As the Electric Utility
operations impacts the City's infrastructure and capital improvements the
Electric Utility shall contribute to a capital improvement fund established by
Ordinance of the City Council. The capital improvement fund shall be used
solely to finance those capital improvement items that are impacted by the
Electric Utility operation. The Electric Utility shall contribute to this fund from
interest earned on those Electric Utility reserve funds that are invested. For
Fiscal Year 2005-06, and each year thereafter, the contribution to the capital
improvement fund shall be made within sixty (60) days of the close of each
Fiscal Year, provided, however, that such contribution shall not exceed the
Electric Utility's net positive income for the Fiscal Year that has closed; if the
Electric Utility does not have a positive net income, then the Electric Utility
shall have no obligation to contribute the interest earnings to the capital
improvement fund. Such interest transfer shall not be considered as
Operation and Maintenance Expenses as such term is defined in the
Agreements.
D. In accordance with common practices related to direct cost recovery and
court decisions, the Electric Utility shall reimburse the General Fund for all
costs for City support services directly provided to the Electric Utility in
accordance with the following two-step process:
i. Step 1: A determination shall be made as to the total amount of all
General Fund costs associated with general City support services that
are provided to all City departments. (General City support services
shall include, but not be limited to, those departments like the City
Administration, City Clerk's Office, Finance Department, Human
138
Resources, and Information Technology). The total amount of General
Fund costs associated with these general City support service
departments shall be made during the budget preparation process for
the subsequent Fiscal Year.
ii. Step 2: The percentage share of the Utility Department's full time
equivalent (FTE) employees shall be determined as a percent of the
total FTE employees for all departments of the City of Azusa. The
General Fund support services cost determined in Step 1 shall then be
multiplied by the Utility Department's FTE percentage share to
determine the support services cost allocation to the Utility
Department. The Electric Utility's share of this amount shall be thirty-
five (35) percent of the allocation. Such cost reimbursements to the
General Fund for all direct City support service shall be considered as
Operation and Maintenance Expenses as such term is defined in the
Agreements.
E. Because the Electric Utility may from time to time generate net positive
income above the Electric Utility's needs for financial reserves, capital
improvement programs, market risk management, and the transfers to the
General Fund described above, the City Council finds that additional
contributions from the Electric Utility to the General Fund may be reasonable
and fair. Within sixty (60) days after the audited annual financial statements
for the Electric Utility become available the City Council may adopt, upon a
joint recommendation by the City Manager and the Director of Utilities,
additional transfers from the Electric Utility to the General Fund. Any
additional transfers pursuant to this section shall be contributed to the capital
improvement fund and shall be used solely to finance those capital
improvement items that are impacted by the Electric Utility operation. Such
additional transfer shall not be considered as Operation and Maintenance
Expenses as such term is defined in the Agreements.
SECTION 2. This Resolution shall take effect upon its adoption by the City
Council.
PASSED, APPROVED AND ADOPTED this 24th day of May, 2004.
stilluP7Madrid, Mayor
ATTEST.
dilir ..-
4,-- tiAlree_o6imouriglite--diked" 'I-7 --
Vera Mendoza, ity Clerk
139
APPROVED AS TO FORM:
By: 41%1?, C6Iv ,
Best Best & Krieger LLP
City Attorney
I HEREBY CERTIFY that the foregoing Resolution No. 04- C37 was duly
adopted by the City Council of the City of Azusa, at a regular meeting thereof, held
on the 24th day of May, 2004 by the following vote of the Board.
AYES: COUNCILMEMBERS: HARDISON, STANFORD, CHAGNON, ROCHA, MADRID
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Vera Mendoza, City Clerk
140
'CP- dr ;in
A.ZUS.A
LIGHT & WATER
SCHEDULED ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: SEPTEMBER 27, 2010
SUBJECT: STRATEGIC DISCUSSION REGARDING AZUSA'S SAN JUAN RIGHTS
RECOMMENDATION
It is recommended that the Utility Board authorize the Director of Utilities to take the following
actions: (a) seek potential buyers and engage in negotiations regarding the potential sale of all or
a portion of Azusa's interest in San Juan Unit 3; and (b) retain legal support through the Southern
California Public Power Authority to assist in preparing necessary transactional documents in an
amount not to exceed $50,000. Any potential buyer or transaction would be subject to future
consideration and approval by the Utility Board/City Council.
BACKGROUND
In 1993, Azusa procured 30 MW of power from San Juan Unit 3 (San Juan) for the remaining
life of the project. Azusa's rights are obtained via a Power Purchase Agreement executed with
Southern California Public Power Authority who issued bonds to purchase interest in San Juan
from Century Power Corporation.
San Juan is a "mine mouth" coal-fired unit which became operational in 1976. It is operated and
maintained by Public Service Company of New Mexico (PNM). Participants include PNM
(50%), SCPPA (41 .8%) and Tri-State G&T Association (8.2%).
Presently, San Juan provides enough energy to serve about 83% of Azusa's retail load. The
projected average cost for San Juan energy in FY11 is $56/MWH. The average price was
$72/MWH in FY 10 due to a prolonged maintenance outage. Estimated price going forward for
San Juan is about $60/MWH.
Staff has been reviewing the appropriateness of continuing its involvement in San Juan at the
present level. Key considerations are as follows:
141
San Juan Unit 3 Strategic Discussion
September 27,2010
Page 2
• Azusa is currently resourced at 120% of its retail load. All resource commitments are take
and pay with no ability to modify schedules to conform with load and/or market conditions.
• Prior to 2020 (with some intermediate steps), Azusa will need to add new renewable power
commitments equal to about 15% of load in order to comply with renewable resource
regulations in California.
• To comply with AB 32 carbon reduction climate change mandates currently under
development by the California Air Resources Board, the utility will need to dramatically
reduce its carbon "footprint" by 2020 (with some intermediate steps). The addition of
renewables (at a premium price) as noted above is expected to partially aide in meeting
carbon reduction mandates but the need for more reductions is contemplated.
• Over the past several years, the price of San Juan power has risen from the $40-50/MWH
range to the $55 to 70/MWH range. The existing coal contract expires in 2017.
• The San Juan owners are currently addressing a lawsuit filed by the Sierra Club alleging that
the dumping of ash and sludge from the power generating station into unlined pits at the San
Juan mine is polluting the groundwater and causing damage to human health, livestock and
wildlife. The San Juan project manager denies the claims.
• As a result of regional haze studies, the New Mexico Environmental Department is
recommending that all units at San Juan install NOx controls called SCR — Selective
Catalytic Reduction. The project manager of the plant estimates the cost of SCR to be $700
million to $1 billion. SCPPA's share would be $90- $125 million with Azusa's obligation
being 14.71% of SCPPA's share or $13-18 million. This money would be spent over 5 years
thus increasing Azusa's project cost by —$3 million per year or about $15MWH.
• The potential for having to make similar environmental improvements at the adjacent coal-
fired Four Corners Units 4 and 5 has precipitated an announcement by the participants in
these units that they will likely retire the units in 2015 rather than make new investments.
Southern California Edison has a large interest in these units.
• Standard/prudent electric utility resource practice promotes diversity in resources. Typically,
utilities have ensured that their "largest single hazard" is as small as possible, usually no
more than 25% of its load mix. Azusa has significant exposure given that San Juan is over
70% of its resource mix and is made up of only one "shaft" or machine.
• Azusa has limited ability to transmit San Juan energy risk-free to the southern California load
center given recent changes in CAISO markets. The bulk of Azusa's San Juan energy is sold
to other utilities east of California at spot market prices. Market prices over the past year or
so have been in the $25-$45/MWH range—well under the cost of energy from San Juan.
• The current short to mid term bulk power market is the softest anyone has seen in quite some
time. If Azusa were to need to replace San Juan energy in the near term, there is a high
probability it could do so at a cost savings.
142
San Juan Unit 3 Strategic Discussion
September 27,2010
Page 3
• Azusa is participating in the Lodi Energy Center. Its entitlement is 7.8 MW or about 55
GWH per year. This has the capability to provide about 20% of Azusa's load requirements
and replace about a quarter of Azusa's share of San Juan.
• California entities with coal participation (most southern California public power agencies
plus Modesto, Santa, Clara and Redding in the north) are seeking buyers for their coal
entitlements including the City of Los Angeles which has interests in several coal projects.
LADWP's current policy is to divest itself of all coal by 2020.
• The bonds issued by SCPPA to purchase an interest in San Juan will be paid off in 2020 —
this will reduce San Juan costs by about $12/MWH after that point. The present SCPPA-
Azusa Power Sales Agreement expires in 2030.
In conclusion, staff feels that it may be in the best long-term interest of the Azusa electric utility
to seek buyers for all or a portion of its interest. The San Juan resource was attractive historically
to the utility, but the changing landscape of the industry, additional operational costs and
challenges while operating under the CAISO model, and environmental regulations support
reconsideration.
FISCAL IMPACT
Legal services through SCPPA to assist with documentation will not exceed $50,000 without
further authorization by the Utility Board.
Prepared by: George F. Morrow, Director of Utilities
143
A ZUS.A
ar lay
t IGHT d 'XATFR
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T. A SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE,�
DATE: SEPTEMBER 27, 2010
SUBJECT: ANNUAL UPDATE ON PROGRAM TO PROTECT CUSTOMER
IDENTIFICATION AND CREDIT INFORMATION IN COMPLIANCE WITH
THE FAIR CREDIT REPORTING ACT AND FAIR AND ACCURATE CREDIT
TRANSACTIONS ACT OF 2003
BACKGROUND
The Fair Credit and Reporting Act (FCRA) required creditors to develop and implement an
Identity Theft Prevention Program by November 2008, with this date later extended to
November 2009. All organizations that extend credit to consumers, including utility service
providers, were required to comply with this regulation which is intended to identify, mitigate,
and prevent identity theft. In October 2008, the Utility Board approved Light & Water's Identity
Theft Prevention Program to protect customer identification and credit information.
The regulation focuses primarily on Red Flags. A Red Flag is defined as "a pattern, practice, or
specific activity that indicates the possible existence of identity theft." Employees with direct
access to customer information received initial training and annual training updates. Periodic
reviews, conducted at least annually, are intended to assess the effectiveness of the policies and
procedures in light of any changes in identity risks to customers or to Azusa Light & Water or to
the City. The Director of Utilities provides oversight over the policies and procedures, and
Azusa Light & Water reports annually to the Utility Board on the program effectiveness.
In September 2009, the Utility Board was informed of several improvements that were made to
secure customer information privacy from adding additional passwords on Customer Service
computers when they are idle to adding physical security measures.
In August 2010 Customer Service employees with access to customer information received an
annual training update. Walk-throughs were conducted at various times throughout the year to
ensure customer information was secured overnight. No additional issues have arisen that would
compromise customers' identities.
14x►
Update on Compliance With Fair Credit Reporting Act
September 27,2010
Page 2
The utility maintains a practice of running credit checks on new customers,uSing Equifax. If it is
determined the new customer has good credit the utility waives a prepayment deposit. If the new
customer has poor credit, the utility requires a prepayment deposit. Effective January 1, 2011,
the utility will be required by the FCRA to provide a verbal or written notice to residential
customers who are required to make a prepayment deposit due to their poor credit rating. The
language of the notice is very exact and AL&W's Customer Service Representatives have been
provided with the specific wording in order to comply with the new FCRA requirement. A
written Q&A is also available for customers. Customers disconnected for non-pay are required to
also pay a prepayment if such deposit is not already on file. However, the prepayment made by
these customers is based on their payment performance with our utility only, not their credit
score and so no notice is required.
FISCAL IMPACT
None.
Prepared by:
Karen Vanca, Assistant Director Customer Care & Solutions
145
4 brat
l '441
�,� ;
Y' e f
}
1
A7USA
LIGHT d '•,'ATFR
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF TH,Eidr A UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES _0
DATE: SEPTEMBER 27, 2010
SUBJECT: FISCAL YEAR 2009-10 YEAR-END FINANCIAL REPORTS
Staff regularly monitors financial information on the electric and water enterprise funds and
formulates quarterly budget reports to show cash flow trends, reserve balances and estimated
debt coverage ratios. Below discusses financial performance for these respective funds through
fiscal year end, June 30, 2010.
Water Fund
Retail water rates were adjusted 18% on July 1, 2009, and this increase was expected to generate
an additional $2.242 million. However, as shown below, revenues only increased by about $1.3
million in FY 2009-10 compared to FY 2008-09.
Annual Water Sales/Billings
FY CCF FY Billings
04-05 9,044,164 14,999,031
05-06 9,086,631 14,302,731
06-07 9,971,443 15,912,915
07-08 8,502,994 15,641,966
08-09 8,333,649 13,988,554
09-10 7,853,732 15,303,213
The main reason for the lower than expected revenue is the lower than expected sales. Sales of
water were down 5.8% in FY 2009-10 compared to FY 2008-09. This is a continuing trend since
FY 2006-07, when the Water Utility issued bonds to finance the water treatment plant, which
increased debt service costs by about $3 million per year from FY 06-07 to FY 09-10.
Obviously, the above scenario continues to put pressure on rates to cover the added debt service
146
Quarterly Financial Report
September 27, 2010
Page 2
expense. Fortunately, the reduced sales, combined with the purchase of low cost water rights,
have allowed the utility to lease excess water rights to other water purveyors under Watermaster
rule changes. Last fiscal year, these water right leases generated about $3.2 million in net
revenues which helped make up for the retail revenue deficiency as depicted in attachment.
Together with conservative spending on capital improvements and capital outlays, it is estimated
that the water utility will have positive net revenue for FY 2009-10 of about $882,000. This has
been made possible by the 18% increase at the outset of last fiscal year and by the leasing of
water rights. There is no guarantee, however, that the City will be able to continue to lease such
rights in the future.
With the added lease revenue, it is expected that the Water fund will meet existing reserve policy
requirement of $25 million, and will meet the debt coverage requirements of the bond financing
documents, which require $1.25 of net income for each $1 of debt service.
The negative operating cash flow during FY 2009-10 of the Water fund, after backing out water
right lease proceeds, is an indication that the water rate increase effective July 1, 2010 of 15.6%
is still valid and necessary.
Electric Fund
Electric utility budget started off FY 2009-10 with a projected $6.6 million funding shortfall.
Consequently, the Utility Board approved a 9.3% rate increase effective December 1, 2009. One
of the purposes of the increase was to meet debt coverage obligations, which include having net
income equal to 1.10 times debt service obligations.
While staff estimates that debt coverage may have been met for FY 2009-10, the attached
calculation is based on preliminary accounting information. As the City's books are finalized
from now through December, staff expects various operating expenses to be capitalized; the
more expenses that are capitalized the better our chances of meeting debt coverage obligations.
Several issues appear noteworthy regarding the financial performance of the Electric Utility this
last fiscal year:
1. There was no Fuel Cost Adjustment (FCA) revenue during FY 2009-10. During FY
2008-09, the FCA generated about $1.5 million in revenue. Coincidentally, this is the
amount staff expected from the 9.3% rate adjustment by FY end 2009-10. However,
without any FCA revenue, the 9.3% rate adjustment just kept retail revenues from
going lower.
2. Retail Sales during FY 2009-10 were down by about 3% compared to FY 2008-09.
Lower levels of consumption were probably due to milder weather and the continuing
lag in the economy, but nevertheless lower consumption means lower retail revenues.
147
Quarterly Financial Report
September 27, 2010
Page 3
Table below shows some history:
Annual Electric Sales/Billings
FY kWh Sales FY Billings
04-05 251,265,870 26,782,803
05-06 238,035,628 27,355,550
06-07 255,560,858 28,484,178
07-08 252,240,704 29,809,429
08-09 253,116,501 31,274,785
09-10 245,616,149 30,099,992
3. While sales were down, purchase power costs reached a high for the last five years as
shown in below table:
Net Purchased Power Costs
FY 2005-06 through FY 2009-10
Account FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10
Wholesale Revenues (10,365,517) (5,367,877) (5,201,029) (3,463,315) (4,392,579)
Purchased Power Cost 23,893,700 21,900,531 25,829,427 23,106,698 26,345,918
Net Purchased Power Cost 13,528,184 16,532,654 20,628,398 19,643,384 21,953,339
Transmission Cost 2,602,382 2,391,715 2,255,043 2,372,305 2,370,943
Dispatch and Scheduling") 268,587 276,468 589,034 590,352 568,323
Lodi Adjustments - - (439,216) (658,825) -
Total 16.399.152 19.200.837 23,033,260 21.974.216 24.892.605
(1)Excludes City personnel costs.
4. The City received reimbursement in FY 2009-10 of about $1 million which it advanced
to NCPA for the Lodi Energy Center project. Since these funds can be used for debt
service according to the Electric Utility financing documents, staff is counting this as
Other Miscellaneous Revenue in attached, which helps with debt coverage calculation
this year.
5. Due to reductions in spending, particularly in the area of Capital Improvement Projects,
the deficit was reduced by about $3.2 million, however, is still expected to be negative
by about $3.4 million. This will reduce our reserve levels to about $11.1 million, which
is below the minimum reserve recommended by a recent consultant report.
The above points indicate that the Utility Board's action in December 2009 to increase rates by
148
Quarterly Financial Report
September 27, 2010
Page 4
9.3% continues to be warranted and necessary. Also, the Board's action in June 2010 to replace
the FCA with the Power Cost Adjustment (PCA) is supported by the financial trends this last
year, and will likely be instrumental in getting the Electric Utility back on track financially
during this fiscal year.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Mate
Water-4th Electric-4thQtrly-Bud
Qtrly-Bud-Rpt FY 09- -Rpt FY 09-10.pdf
149
Water Utility Quarterly Budget Report
Fourth Quarter Ended June 30, 2010
(UNAUDITED)
Consumption and Reserve Info Prior FY End 4th Qtr Ended Percent
Consumption-CCF: 8,333,649 7,853,732 94%
Cash and Investments:° $ 24,195,856 $ 25,077,890 104%
FY 2009-2010 Budget Information Budget Actual Thru Percent of
09-10 4th Qtr Budget
Revenues
Retail Billing Amounts(2) $ 15,176,020 $ 15,303,213 101%
Other Revenues(S) 1,018,231 4,711,216 463%
Interest Income 600,000 347,303 58%
Total Revenues $ 16,794,251 $ 20,361,732 121%
Expenses
Production $ 3,187,395 $ 2,468,159 77%
Purchased Water(4) 4,496,110 2,823,019 63%
Transmission and Distribution 2,786,545 2,313,231 83%
Customer Accounting and Sales(5) 4,152,176 3,710,357 89%
Administrative and General 1,000,670 652,127 65%
Franchise Fees 358,155 316,101 88%
Subtotal Expenses $ 15,981,051 $ 12,282,995 77%
Capital Expenditures/Debt Service:
Debt Service Payments(6) $ 4,518,170 $ 4,518,170 100%
Capital Improvement Budget(7) 8,658,057 3,543,933 41%
Capital Projects Funded by Bond (3,559,891) (865,399) 24%
Total Expenses(Less Bond Funding) $ 25,597,387 $ 19,479,698 76%
Adjustments
Transfers Out $8,000 $0 0%
Total Expenditures and Transfers Out $ 25,605,387 $ 19,479,698 76%
Net Change in Cash(Negative) $ (8,803,136) $ 882,034 -10%
Debt Coverage Ratio(9) 0.26 1.86
Notes:
(1)Source:FY 2008-09 Comprehensive Annual Financial Report. Reserve Policy is$25 million.
(2)Based on Customer Information System Billing Amounts through June 30,2010.
(3)Includes Nonrecurring Water Right Lease Revenues of$4,448,228.
(4)Includes water right lease payment to City of about$1.3 million.
(5)Customer Service Allocation to Water Fund-less misc offsetting revenues recorded in fund 31.
(6)Principal and Interest on 2003 COP and 2006 Revenue Bonds thru 4th quarter of fiscal year.
(7)Approved appropriations for multi-year projects,some of which are carryovers from prior year,
including$3,264,563 for water treatment plant,a now completed project.
(8)Half of Interest Income may be transferred by policy if there is positive net income. As of 9/1/2010,no
transfers have been made.
150
(9)Total Revenues less Production,Purch'd Wtr,T&D,Cust Acctg,&A&G divided by Debt Svc Pymnts.
Minimum debt coverage requirement is 1.25 per bond financing agreements.
151
Electric Utility Quarterly Budget Report
4th Quarter Ended June 30,2010
(UNAUDITED)
4th Qtr Ended
Consumption and Reserve Info Prior FY End 6/30/10 Percent
Consumption-kWh: 253,116,501 245,616,149 97.04%
Cash/Reserve Prior Fiscal Year Enclw $14,545,395 $11,101,181 76%
FY 2009-2010 Budget Information Budget Actual Thru Percent of
09-10 6/30/10 Budget
Revenue
Retail Billing Amounts(2) $29,971,645 $30,099,992 100%
Resale Revenue 5,500,000 4,392,579 80%
Other Miscellaneous Revenue(3) 398,000 1,353,819 340%
Interest Income 650,000 677,899 104%
Total Revenues $36,519,645 $36,524,289 100%
Expenses
Purchased Power $25,580,000 $26,345,918 103%
Transmission/Dispatching 4,631,515 3,478,395 75%
Operations and Maintenance 3,742,610 3,109,610 83%
Administrative and General(4) 2,333,479 2,077,130 89%
Franchise and In-Lieu-Tax 2,960,223 3,064,635 104%
Subtotal Expenses $39,247,827 $38,075,688 97%
Capital Expenditures/Debt Service
Long Term Debt Service(5) $947,783 $947,783 100%
Capital Outlays and Projects(6) 2,911,758 945,031 32%
Total Expenditures $43,107,368 $39,968,503 93%
Adjustments
Transfers Out171 8,750 0 0%
Total Expenditures and Transfers Out $43,116,118 $39,968,503 93%
Change in Cash/Reserve ($6,596,473) ($3,444,214) 52%
Debt Coverage Ratio(8) 0.24 1.60
(1)Based on FY 2008-09 Comprehensive Annual Financial Report. Two items comprise this total: (a)Cash and
Investments;(b)Rate Stablization Fund Amount. Reserve Policy is$20.27 million.
(2)Actuals represent amounts billed based on Customer Information System report for June 2010. Actual revenues
received by June 30,2010 as reported by financial system were:$28,220,177.05.
(3)Includes one-time reimbursement of$1 million for Lodi Energy Center project.
(4)Consumer Service Allocation Actuals multipled by 35% (Electric Fund Share),plus Uncollectible Account
(5)Based on annual debt service payments for Series B and C,2003 Certificates of Participation.
(6)Capital Outlays Accts with Balances>$10,000 and Capital Improvement Project budget figures.
(7)Interest Income is transferred after fiscal year end if there is positive net income.
152
(8)Total Revenue less Cost for Purch'd Pwr,Trans,O&M, and A&G,divided by debt service. Minimum
debt coverage requirement is 1.10 per bond financing agreements. This is preliminary d/c ratio and it may
vary with Disclosure Report prepared after the audited financial reports are available,around December
153
p...3
AZUSA
CMT 6 'WATEE
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T. ASA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES dIP
DATE: SEPTEMBER 27, 2010
SUBJECT: WATER SUPPLY OF THE CITY OF AZUSA LIGHT&WATER
WATER SYSTEM
The City of Azusa serves drinking water to a population of 105,000 people in the cities of Azusa,
Covina, West Covina, Irwindale, Glendora and parts of Los Angeles County. Azusa's water
supply depends on the San Gabriel River to deliver local runoff and to deliver imported water to
Basins from which the City of Azusa pumps groundwater, and via canals to Azusa's Hsu Water
Treatment Plant. Azusa also receives water from the State Water Project. California, Southern
California and the Southwestern United States tend to be dry (semi arid to arid) and experience
periodic droughts. Currently, the Southwest, including Southern California, is experiencing a
protracted drought cycle which is punctuated by periodic rainfall. However, the rainfall that the
State has received to date is not sufficient to declare the drought to be over.
Attached is a Powerpoint with some additional information regarding Azusa's current and short
term water supply issues.
Prepared by:
Chet F. Anderson, P.E., Assistant Director—Water Operations
154
9/15/2010
WATER SUPPLY OF THE
CITY OF AZUSA
LIGHT & WATER SYSTEM
PRESENTED BY AZUSA LIGHT&WATER STAFF
SEPTEMBER 27,2010
155 1
9/15/2010
WATER SUPPLY IN MAIN SAN GABRIEL
GROUNDWATER BASIN
•Because it was being over pumped and the groundwater supply
was in distress, the Main San Gabriel Groundwater Basin was
adjudicated in 1973 and put under Court supervision
•The right to pump water out of the Basin was distributed
between approximately 100 water producers
-The Main San Gabriel Basin Watermaster was appointed by the
Court to administer Basin water rights and Basin water supply
with the supervision of the Court
•The underlying principle of the Judgment was that all
overproduction would be replaced through the purchase of
supplemental water by Watermaster
•Producers who pumped water in excess of their allotted water
rights would pay an assessment for each excess acre-foot of
water produced
156 2
9/15/2010
WATER SUPPLY AVAILABLE TO THE
MAIN SAN GABRIEL GROUNDWATER BASIN
• Natural water supply consists of rainfall and snowmelt runoff to the
San Gabriel River which is spread by Los Angeles Dept. of Public
Works at the Santa Fe Spreading Grounds at 1-605 and 1-210
• Currently the state and the local region have been affected by the
continuing 10-year drought. Periodic rainfalls have not broken the
drought.
• A water connection (USG-3) near Morris Dam that delivers water
from the State Water Project(SWP)and from the Colorado River.
Lately supplemental water supply from USG-3 has been unavailable
from Metropolitan Water District. Deliveries have been sporadic,and
costs for water are rising rapidly. (next slide)
• SWP deliveries by San Gabriel Valley MWD. Each year, in May the
percentage of allocation to each SWP contractor by Dept of Water
Resources.This year SGVMWD SWP allocation is 50%,which is
14,400 AF of water out of a 28,800 AF SWP Contract amount.
157 3
9/15/2010
USG-3 DELIVER„-,E,S
(acre-feet)
End of End of
Month USG-3 all Month U Cost
Apr-05 000 $246.65 Dec-07 1,965 30 2/ $251.90
May-05 0.00 $246,6i5 Jan-08 1,745,90 2/ $251.90
Jun, 000 $246.65 Feb-08 0,00 $251.90
Jul-05 000 $246.65 Mar-08 0.00 . $251.90
Aug-05 1,042.20 $246.65 Apr-08 0.00 $251.90
Sep-05 4,836.30 $246.65 May-08 0.00 $251.90
Oct-05 4,848.50 $246.65 Jun-08 0.00 $251.90
Nov-05 7,597.00 $246.65 Ju1-08 0.00 $251.90
Dec-05 9,986.80 $246.65 Aug-08 000 $251.90
Jan-06 8,243.30 $246.65 Sep-08 0.00 $251.90
Feb-06 7,434.30 $251.90 Oct-08 000 $251 90
Mar-06 9,488 20 $251.6+0 Nov-06 0.00 $251.90
Apr-06 916.40 $251.90 Dec-08 0.00 $251 90
May-06 599.10 $251.90 Jan-09 0.00 $251 90
Jun-06 0.00 $251:90 Feb-09 0.00 $251.90
Jul-06 0.00 $251.90 Mar-09 0.00 $337.00
Aug-06 0.00 $251.90 Apr-09 0.00 $337.00
Sep-06 000 $251.90 May-09 0.00 $337.00
Oct-06 0 00 $251.90 Jun-09 0 00 $337.00
Nov-06 0.00 $251.90 Jul-09 0.00 $337.00
Dec-06 000 $251.90 Aug-09 000 $337.00
Jan-07 000 $251.90 Sep-09 0.00 $337.00
Feb-07 0 00 $251.90 Oct-09 000 $386.00
Mar-07 0.00 $251 .90 Nov-09 000 5386 00
Apr-07 0.00 $251.90 [*c-09 0.00 $386.00
May-07 0.00 $251.90 Jan-10 579.50 $655 00
Jun-07 0.00 $251 90 Feb-10 0.00 $655.00
Jul-07 1,733.80 1/ $251.90 Mar-10 4,620 90 $655 00
Aug-07 1,813.10 1/ $251.90 Apr-10 10,876.00 $655.00
Sep-07 1,842 40 1/ $251.90 May-10 000 $655 00
Oct-07 1,961 60 1/ 525' 90 Jun.10 000 $65500
Nov-07 2,013.20 2/ $251 90 Aug-10 0.00 $655.00
Note:
1/Ali water deliveries were for CIC/Azusa deliveries
2/All water deliveries were for Azusa/Glendora deliveries
158 4
9/15/2010
MAIN SAN GABRIEL GROUNDWATER BASIN
BASINWIDE WATER PRODUCTION,
2006-2007 287,000 AF SY 240,000 AF
2007-2008 261,000 AF SY 210,000 AF
2008-2009 253,000 AF SY 180,000 AF
2009-2010 237,000 AF SY 170,000 AF
A combination of weather patterns and conservation
efforts have combined to reduce the amount of water
that is being pumped by the Basin Producers. Water
levels in the Basin are being impacted by production and
lack of rainfall or replacement water (next slide)
5
159
9/15/2010
1993 -2010
WATER LEVEL AT BALDWIN PARK KEY WELL
2150 . TT^., r-1""+---.- -r r•---t Y--y- T
i I _' . i : : 1 1 t
t=_ r 1 -1.-
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1003 1994 1995 19915 1497 1999 1909 2000 2001 2002 2003 2004 2005 20015 2007 20015 2000 7010 2011
YEAR
t--4.--O/VLY AVER OE ---HIGH OPERATIONAL LEVEL•.---LOW OPERATIONAL LEVEL
6
160
9/15/2010
PROBLEMS WITH IMPORTED WATER SUPPLY
• State Water Project water is imported from the north through the
Delta.The Delta is an environmentally sensitive area through which
water deliveries continue to be reduced by 30 percent to protect
various species of endangered aquatic wildlife;e.g. Delta Smelt.
• The Delta is protected by a series of levees that are very old and
poorly constructed.A serious breach of the dams could cause an
interruption of SWP water deliveries for months or years.
• The Colorado River water supplies are dwindling due to drought and
overuse.Water from the River is also threatened by an invasive
species of mussel(quagga)that can cause serious problems with
water delivery mechanisms;e.g.pumps,valve, pipes
• The dwindling level of Lake Mead could lead to a loss of electric
generation at Hoover Dam which could,among other things,cause
an increase in energy costs to lift water from the Colorado River
161
9/15/2010
CANYON BASIN
• The Canyon Basin is located in the northwest section of
the City of Azusa, east of the San Gabriel River just
north of the golf course
• The Canyon Basin is legally considered a part of the
Main San Gabriel Basin for the purposes of the
Judgment
• Three water producers pump water from the Canyon
Basin — City of Azusa; City of Glendora; and California-
American Water Company
• The Canyon Basin is managed by Los Angeles County
Public Works Department
• The Canyon Basin is Azusa Light & Water's main source
of water supply
162 8
9/15/2010
CANYON BASIN WATER SUPPLY
• Canyon Basin has an estimated Safe Yield of 8,000 AF.
The Main Basin SY is 170,000 this year
• Because of its relatively small size and the amount of
water pumped by the producers, the water level in the
Canyon Basin is very reactive to demand and supply
(next slide)
• Water to the Canyon Basin comes from the River via the
Committee of Nine Canal River; water can be runoff or
USG-3 imported water. SWP water can be discharged to
the Canyon Spreading Grounds through a direct
connection from the San Gabriel Valley MWD pipeline to
the north spreading pond
9
163
9/15/2010
CANYON BASIN WATER LEVELS 2005-2010
680 --- --------- -- ..
660 --
V /V 16jvAA
640
V
620 , I\is.
600 --
;ii V
\i' i\i
m 580 I
3
560
540
520
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.n m m m m m m o o � � cu N � a a � N m m r n m m w m o _o
Li m m m 0> 0) m 0> 0) 0> 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
so m m m? so T m Of OI N N N N N N N N £I 05 0 N O N N N O
n n n so n so n n r .- n n n n
Date
164 10
9/15/2010
I
WATER LEVEL AT BALDWIN PARK KEY WELL
280 1 r r TTT"T • . • : - •"T
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190 --T - -I i-. �T -r -i T •1'r.-( _SY T' i-r}—�•T'i -r;-r -„--I 'I' i'i i' i 11 1-i-t -1 1` _1 .1 ,•
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t_j -' : . -•-. r-r-r-i-r-1- --' _ - _ i-1 r ` _ -rte ..r . �-.
180 —L J tom 1,_ • 1 1 1 l-, 1 1 1 1 . • I i L 1 1 L. I.s 1 1 1 1 i 1_a_,_1 11J
1993 1994 1995 1998 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2005 2009 2010 2011
YEAR
-•--DAILY AVERAGE—HIGH OPERATIONAL LEVEL -LOW OPERATIONAL LEVEL i
1.65 1,
9/15/2010
HOW REACTIVE IS THE CANYON BASIN?
+ b #s
f �
Y om.
4� Y' ,,t_.ry.y }#, t4xsst„ sT 43 J
d
South Spreading Ground Pond
At overflow until July 11 September 15
12
t66
9/15/2010
AZUSA'S WATER PRODUCTION
• Water is supplied to the Azusa water system by 10
groundwater wells which pump out of the Canyon Basin
• Water is also supplied by the 12 MGD Hsu Water
Treatment Plant which receives its water supply through
the Committee of Nine Canal
• ALW has one groundwater well which pumps a limited
amount of water from the Main San Gabriel Basin
• ALW is planning with other retail water agencies to
reclaim seven contaminated groundwater wells to
provide treated water to supplement their water supplies
167 13
9/15/2010
WATER CONSERVATION
• Azusa is currently in Phase II of a four Phase conservation program
that goes into effect when water supply shortages are occurring
• By adhering to the restrictions imposed on water use by Phase I and
Phase II, the residents of the Azusa Light & Water system have
achieved a reduction of approximately 20% in their water use
• Other producers in the Main San Gabriel Groundwater Basin have
similarly encouraged water use conservation measures and have
also achieved some success in conservation for their efforts
• It's the goal of the State of California has a stated goal of achieving
a 20% reduction in water use by the entire state by 2020
• The City of Azusa has recently imposed new water use restrictions
for landscaping in accordance with California Law AB1881which
required each municipality and water purveyor to institute water
conservation measures to conserve water use in landscaping by
January 2010
14
168
9/15/2010
NEAR TERM OUTLOOK IN WATER SUPPLY
• Watermaster began delivering 30,000 acre feet of water to the River
from USG-3 on Monday, September 14. The water was purchased
from MWD at considerable expense. The Committee of Nine will
have an opportunity to divert some of this water to Azusa's water
treatment plant and to the Canyon Spreading Grounds
• The Pasadena Conduit, which delivers water directly from San
Gabriel Dam to the Committee of Nine Canal, was damaged during
last year's rainfalls and is being repaired. It will be in service within
the next three months delivering water to Azusa's water treatment
plant and to the Canyon Spreading Grounds
• SGVMWD may deliver water in an undetermined amount directly to
the north pond at the Canyon Spreading Grounds
• A La Nina condition is being predicted for this Winter and may result
in drier than average weather
16915
9/15/2010
LONG TERM OUTLOOK IN WATER SUPPLY
• Climate change may have an impact on water supplies
• The drought may continue as a normal long term dry
weather pattern develops
• Metropolitan Water District may continue to experience
difficulties in providing Replacement Water to the Main
San Gabriel Basin
• Solutions to the problem in the Delta may take time
• Conservation may become a continuing necessity as
water remains scarce
170 16
9/15/2010
13 2070 )CAcur park ruurs
Lake Mead's Water Level Plunges as 11-
Year Drought Lingers
By PAUL QUINLAN of (itt'cn ire
Lake Mead, the enormous reservoir of Colorado River water that hydrates Arizona, Nevada,
California and northern Mexico, is receding to a level not seen since it was first being filled in
the 1930s, stoking existential fears about water supply in the parched Southwest.
Heightening those concerns are recent signs that the region's record-breaking. 11-year drought
could wear on for another year or longer. July not only saw the lake drop to 1956 levels but also
brought cooling temperatures in the Pacific Ocean that signaled a developing La Nina system,
historically a harbinger of more hot and dry weather.
Chronic troubles
Mead's disappearing act highlights the Southwest's chronic overuse of Colorado River water.
Trouble originated with the 1922 Colorado River Compact, which estimated the river's water
flow at 16.4 million acre-feet per year and divided that up among seven states and Mexico.
Today, scientists believe the compact overestimated the flow by as much as 2 million to 3
million acre-feet, because flow measurements taken during the 20th century were skewed -- it
was the wettest century of the last 500 to 1,200 years, according to recent paleoclimate studies
of tree rings.
171 17
PS. 14
•
' *
AL U SA
CHT 3 k'itEl.
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF T USA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE
DATE: SEPTEMBER 27, 2010
SUBJECT: MULTI-AGENCY REGIONAL GROUNDWATER RECOVERY PROJECT
The City of Azusa water system currently has three groundwater wells that are located in the
Main San Gabriel Basin but are unable to be used for water production due to groundwater
contamination. One of the wells, Well No. 10, is allowed by the California State Department of
Public Health to pump part time to a large reservoir where the pumped water is blended with
other system water before it is allowed to enter the Azusa Domestic Water Distribution System.
Azusa Light & Water Staff has been involved in discussions of a possible joint water treatment
plant with three other agencies: the City of Glendora, Rowland Heights Water District and
Walnut Valley Water District. The treatment plant being discussed would allow the three
contaminated wells belonging to Azusa and three contaminated wells belonging to Glendora to
be treated to drinking water standards and used as supplemental water supply by all four
agencies.
Attached is a Powerpoint with some additional information about the Multiagency Regional
Groundwater Treatment Recovery Project.
Prepared by:
Chet F. Anderson, P.E., Assistant Director—Water Operations
172
9/15/2010
MULTI-AGENCY REGIONAL GROUNDWATER
RECOVERY PROJECT
SEPTEMBER 27, 2010
..
rie
`� `'a• a V fAr s
CL-
Feasibility Study for the Multi-Agency Regional
Groundwater Recovery Project
100% DRAFT
I
v , i 1
- 1 --4. : It oir
I ,
1fi�I---- # � j-r
In oon ratioh vi th the Azusa Gg(tt and Water,the City o`G'endo;a,
Rowland Water Dhstrict,Three Valleys Municipal Water Dist,-kr,
and the Waunr Valley Water District
1
173
9/15/2010
PARTICIPATING AGENCIES
• CITY OF AZUSA LIGHT &WATER
• CITY OF GLENDORA WATER DEPARTMENT
• ROWLAND WATER DISTRICT
• WALNUT VALLEY WATER DISTRICT
• COVINA IRRIGATING COMPANY (contrib. well)
174 2
9/15/2010
THREE VALLEYS MWD
• Three Valleys Municipal Water District is a member
agency of Metropolitan Water District of Southern
California
• All five participating agencies in this project are
subagencies of Three Valleys MWD
• Walnut and Rowland have no potable groundwater
supply and depend 100% upon Three Valleys for
treated water supply
• Three Valleys has fully funded the initial Feasibility
Study
175 3
9/15/2010
PROPOSED SOURCE OF WATER SUPPLY
FOR THE PROJECT
• Azusa Light & Water has three wells in the Main San
Gabriel Groundwater Basin (Basin) that are out of
service due to contamination
• City of Glendora has three wells in the Basin that are off
line due to contamination
• Rowland Water District and Walnut Valley Water District
supply 100% of their domestic water needs with
Metropolitan Water District treated water
� Covina Irrigating Company has the Contract Well in the
Basin which is contaminated and will be treated as a part
of this project
176 4
9/1 5/201 0
CONCENTRATIONS OF CONTAMINANTS IN THE
WELLS TO BE TREATED
_ Table 2-1: Contaminant Concentration Summary
SourceFlow Nitrate
Perchlorate VOC-PCE VOC-TCE VOC•DCE Uranium Gross
(gPm1 OWL) ha
(ugh) OWL) (ug/L) (ug/L) it O-) (PCS)
MLC n'a 45 , 6 5 5 6 20 15
DLR2 — na 2 1 4 0.5 0.5 0.5 1 3
•Azusa 9 4,782 85 I 14 0 0 0 0 0
Azusa 10 1 2,216 61 10 1 0.82 0 0 0 0
Aspan 3.135 15.9 I 0 1 1 1 3.7 __.1 8.._._.. , 3.3 4.1
Glendora 3 2.1150 133 I 13 r 0 ; 0 0 0 0
1 Glendora 4 2.000 86 ' 14 0 0 0 0 0
V osburg 2.300 106 5.23 2.3 1 0 0 0 0
Contract 2.4010 III 14 2.2 0 0 0 0
rBcnded 18,883 82.94 11.72 I 0.54 0.61 2.99 0.55 1 0.68
Concentrations' I _
1 .- Maximum Contaminant Level
12 - Detection Limits for Purposes.of Reporting
3 - Assumes all maximum well discharges are combined
177 5
9/15/2010
WATER SUPPLY RELIABILITY
Current drought and need for a water supply contingency
plan during times of water shortage
ALW and Glendora need additional water supply to meet
high summertime water demands
y Glendora, Walnut Valley and Rowland need additional
water year round to offset the high cost of MWD treated
water
A water treatment plant shared by Azusa Light & Water;
City of Glendora; Walnut Valley WD; and Rowland WD
will address the water needs of the parties
6
178
9/15/2010
DISTRIBUTION OF TREATED WATER TO THE AGENCIES
15,000 _- ------ -- ---
I
12,500 r
/' \\\\
10,000 \\\\
` • • `
u. 7,500 ------ — --� ---
5 000
2.500
0
it2
m pa a ? g, E p F
fp
4) n 0 - v
V) Z 0
1 Al W Lt Glendora C7 WWVD n RWC)
'rabic 7-5: Surrrno.rof Distribution of Water from Treatment Plant
I Unit 1_ AI,W Glendora WYWD RWI) _ Total
Januar!, (gran) ,4 - 1 7,_4p0 7,50() 15.00()
fcbruar� • (I:ptn) - - 7.500 7.500 15,000
March Wm) 7,500 7,50() 15.000
April _..-_ _____ ._(gpm)�__.. - 500 7,250 7.250 15,000
May .. (gem)�� - 2,500. _..6_250 .. 6,250 15,000
rJune (gym) _ - 3,900 5.550 5,550 15.000
July { in) �__ 4,350 4.350 15.))00
Au uxt _ ( pm) Y ...4,S00 5500 ______• .. _
2.600 2,600 15.000
Sc tember (gpm) 4,500 3.800 3,35() 3.350 15,0(10
October r J __ (gpm) _1,300 ______2.100 _5,800 5,800 15.000
.November (gpm) , - - 7,500 7,500 15.000
December (gpm) � - - 7,500 7.500 15,000
Volume (AHS 1,613 3.051 9,765 9,765 24,194
Percent o1 Tutu (%) _ 6.67% 12.61% 40.36% 40.36% 100°/ 4
7
179
9/15/2010
FACILITY LOCATION MAP
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180
9/15/2010
PROPOSED WATER TREATMENT PLANT SITE
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181
9/15/2010
ESTIMATED CAPITAL COST OF THE PROJECT
Sub-Total $52,827,374.64
10%Contingency $5,282,737.46
15%Engineering,Planning and Administration $7,924,106.20
Total $66,034,218
Period(Years) 30
Interest Rate 4%
Annual Cost $3,818,765.39
Annual Yield(AF/Yr) 24,200
Annual Unit Cost($/AF) $158
182 10
9/15/2010
BENEFITS BREAKDOWN FOR TREATMENT,
PRODUCTION AND COLLECTION
Unit 1 CLW Glendora WVIVD RWD Total
Volume (AF) 1 ,613 3,051 9,765 9,765 24,194
Percent of Total (%) ( 6.67% 12.61% 40.36% 4016% 100.0°%0
11
183
9/15/2010
COST BREAKDOWN FOR THE PROJECT
PARTNER AGENCIES
CITY OF AZUSA LIGHT& WATER
6.67% of $66,034,218 = $4,404,482.34
CITY OF GLENDORA WATER DEPARTMENT
12.61% of$66,034,218 = $8,326,914.90
ROWLAND WATER DISTRICT
40.36% of$66,034,218 = $26,651,410.38
WALNUT VALLEY WATER DISTRICT
40.36% of$66,034,218 = $26,651,410.38
$66,034,218
12
184
9/15/2010
FUTURE OF THE PROPOSED PROJECT
1 . A Draft Memorandum of Understanding is being
prepared at the expense of Walnut Valley Water
District and Rowland water District
2. The Draft MOU will address:
A. The proposed organization of the joint project
B. The responsibilities of each of the parties
C. The type of funding proposed for the project
D. Project scheduling
E. The means and methods of selecting consultants for the project
F. The operation of the project on completion
When the Draft MOU is received it will be reviewed in-
house, reviewed by the attorney, and presented to the
Utility Board for comment and revision or rejection
185 13
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AZUSA
LIGHT & WATER
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OFT . A USA
UTILITY BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIE'40
DATE: SEPTEMBER 27, 2010
SUBJECT: UPDATE ON AZUSA LIGHT & WATER's RENEWABLE ENERGY
PROGRAM
In July, 2007, the Utility Board adopted a revised Renewable Portfolio Standard (RPS) to
comply with state law (SB 107). This RPS established a target RPS level of 20% in 2010
and 33% (or higher) in 2020. Attached is Azusa's adopted/current RPS.
Since that time, there have been annual legislative attempts to modify the general
California RPS goal of 20% in 2010 under an increasing requirement reaching 33% in
2020. Failure to pass a legislative RPS bill in 2009 resulted in the Governor issuing an
Executive Order (S-21 -09) directing the California Air Resources Board (CARB) to
establish regulations to implement a formal state-wide RPS program with a goal of 33%
in 2020. An attempt by the legislature to adopt RPS legislation failed again in 2010 (SB
722).
CARB is now finalizing RPS regulations for possible approval by their Board on
September 23. Although constantly evolving, the current proposed RPS percentages and
dates are as follows:
Effective Dates RPS Percentage
2012 through 2014 20
2015 through 2017 24
2018 through 2019 28
2020 and thereafter 33
CARB's current proposal contains no restrictions on the location of renewable resources
(SB 722 would have required 75% of renewables to be located in California or in close
proximity). The legislation also proposed not to implement penalties until 2015 when the
RPS requirement reaches 24%.
186.
Update on Azusa Light&Water RPS Program
September 27,2010
Page 2
AL&W's Current Renewable Projects
Azusa's current renewable portfolio consists of 4 contracts, from 10 to 20 years in length,
with about 17.7 MW of contracted capacity in total.
• Iberdrola (formerly PPM wind) PPA—wind; 6 MW capacity; in-state
PPM Energy was Azusa's fist renewable energy contract. The 20 year purchase power
agreement (PPA) was negotiated through SCPPA and executed in 2003 as a bilateral
PPA. The contract capacity is based off a large wind farm in Solano County, Ca. The
associated energy is delivered shaped at the rate of 2 MW per hour at the Mead
230kVsubstation. Other entities that have entered into similar PPAs with PPM Energy are
Pasadena,Anaheim, Colton, and Glendale.
• San Dimas bilateral PPA— small hydro; 1.05 MW capacity; in state
The 10 year agreement with the San Gabriel Valley Municipal Water District (SGV
MWD) was executed in 2006. It should be noted that Azusa (Water) is one of the four
member agencies of SGV MWD. Contract capacity is derived from a small hydroelectric
generator located in San Dimas at the San Dimas turnout of the Devil Canyon — Azusa
pipeline.
• Garnet bilateral PPA— wind, 6.5 MW capacity (currently 5.5 MW); in state
The 20 year Garnet PPA was executed in 2007. The contract calls for energy from 13 (0.5
MW nameplate capacity) wind turbines for the total of 6.5 MW. The wind park is located
in San Gorgonio Pass near the city of Palm Springs, CA. Please note that at this time
there are 11 turbines operational, the last two turbines should be installed by end of
October 2010.
• MWD SCPPA PPA— small hydro; 3.71 capacity MW; in state
The 15 year PPA between the Metropolitan Water District (MWD) and SCPPA was
executed in 2008; other participants on the project include Anaheim and Colton. The
agreement is based on four(4) small water conduit based hydroelectric plants.
Current Azusa RPS Level
Azusa's actual RPS has ranged from 2.3% in 2003 to a projected high of 16.2% in 2010
based on current renewable resources.
187
Update on Azusa Light& Water RPS Program
September 27,2010
Page 3
Actual
RPS Retail Sales RPS
(in MWH) (MWH)
2003 5,858 259,438 2.3%
2004 17,568 267,248 6.6%
2005 17,525 259,071 6.8%
2006 16,064 265,244 6.1%
2007 15,558 262,626 5.9%
2008 18,464 266,252 6.9%
2009 28,327 258,267 11.0%
2010 41,704 258,000 16.2%
2010 51,600 258,000 20.0%
Azusa's RPS performance is consistent with many other private and public utilities in
California. In general, new renewable resource projects are extremely difficult to
implement on a timely basis and many projects fail to come to fruition after much time
and effort by developers. Out of 100 renewable project proposals, for instance, only 3-4
may meet cost and time goals.
!Calendar year 2003 2006 2007 2008 2009
Investor Owned Utilities
PG&E 12.40% 11.90% 11.40% 12.00% 14.40%
SCE 17.90% 16.10% 15.70% 15.50% 17.40%
SDG&E 3.70% 5.30% 5.20% 6.00% 10.50%
Large POUs(retail sales greater than 10 million MWh per)1E
LADWP 1.6% 3.8% 4.3% 5.3% 12.4%
SMUD 4.8% 10.9% 13.9% 15.7% 18.7%
Medium POUs(retail sales of 750,000 to 10 million MWh pe
Anaheim,City of 0.1% 4.5% 5.3% 6.3% 9.2%
Burbank,City of 0.3% 0.6% 1.0% n/d 3.9%
Glendale,City of 7.4% 10.2% 14.1% 14.0% 17.0%
Imperial Irrigation District 8.4% 7.4% 7.6% 7.0% 6.7%
Modesto Irrigation District 0.0% 6.6% 11.7% 11.5% 10.4%
Palo Alto,City of 2.4% 12.3% 10.3% 13.8% 16.5%
Pasadena,City of 0.6% 1.9% 8.7% 9.1% 8.3%
Redding Electric Utility 4.8% 8.1% 26.7% 8.8% 2.7%
Riverside,City of 13.4% 13.1% 10.8% 11.0% 14.2%
Roseville Electric 8.8% 7.4% 6.7% 7.0% 7.1%
San Francisco,City and County of n/d n/d 10.2% 0.3% 0.3%
Silicon Valley Power(SVP) 23.2% 21.1% 28.1% 28.0% 25.7%
Turlock Irrigation District 6.7% 8.0% 5.0% 4.4% 18.0%
Vernon,City of 0.0% 0.0% 0.0% 0.0% 0.0%
Small POUs(retail sales less than 750,000 MWh per year)
Alameda Municipal Power 54.7% 48.7% 54.5% 52.2% 61.0%
Azusa Light&Water 2.2% 6.1% 5.8% 7.0% 11.0%
Banning,City of 0.0% 4.0% 4.6% 9.3% 20.3%
188
Update on Azusa Light&Water RPS Program
September 27,2010
Page 4
Future Azusa Renewable Procurement Activities
When the expected output from the two additional Garnet wind turbines (soon to be
operational) is considered, Azusa will have a RPS level of about 18%. The utility will
need to acquire additional renewable power or renewable energy credits (REC's) of about
2% prior to 2012, 6% by 2015, 10% by 2018 and 15% by 2020.
Azusa can obtain additional renewable power either by contracting directly with
developers/sellers or by participating as a joint effort through SCPPA.
Presently, Azusa is part of the SCPPA Renewable Projects Committee. As directed by
this Committee, SCPPA periodically issues RFPs for renewable resources. The
committee reviews renewable proposals for feasibility based on price, environmental,
permitting, location, transmission, and technology. Currently Azusa is reviewing several
renewable power offers from the proposals submitted in response to SCPPA's RFP for
renewable resources.
As an example, below are short descriptions of a couple of the renewable projects under
consideration by Azusa:
1. RAM Power PPA (through SCPPA) — geothermal project; potential Azusa
subscription — 1 MW; located in-state (Imperial County), in IID Balancing Area
(control area); currently projected (but not yet finalized) ; contractor projected
Commercial Operation Date (COD) — 2014; contractor proposed length of
contract- 30 years
2. La Paz PPA (through SCPPA) — solar tower (new technology); potential Azusa
subscription — 2 MW; project location - Arizona; Western Administration Power
Area Balancing Authority; currently projected (but not yet finalized); contractor
projected Commercial Operation Date (COD) — 2014; contractor proposed length
of contract - 20 years
3. Bowerman PPA (through SCPPA) — landfill gas; potential Azusa subscription 1
or 2 MW; in-state (Orange county); ISO control area; currently projected (but not
yet finalized); contractor projected Commercial Operation Date (COD) — 2013;
contractor proposed length of contract- 20 years
4. SGMWD Small Hydroelectric (directly)— we are exploring the addition of up to
four small hydro units (similar to the current San Dimas hydro unit) in SGMWD
pipeline which could generate up to 2 MW.
Conclusion
Azusa's current RPS level is about 18% on a forward basis. Proposed California Air
Resources Board rules require electric utilities (private and public) to "retire" sufficient
Renewable Energy Credits (REC) to meet 20% of their demand by 2012. Azusa is
considering a number of new renewable resource projects. Following adoption of CARB
189
Update on Azusa Light&Water RPS Program
September 27,2010
Page 5
rules, staff will review Azusa's current RPS policy for corresponding changes for
consideration by the Utility Board.
Prepared by: Yarek Lehr, Assistant Director of Resource Management
George F. Morrow, Director of Utilities
Attachments:
1. Current AL&W Renewable Portfolio Standard Policy
2. Background Paper on California Renewable Portfolio Standards
190
City of Azusa
Renewable Power Portfolio Standard (RPS)
Revised September 24,2007
Purpose:
This standard represents Azusa's commitment to renewable resource procurement consistent with
the provisions current law.
Goal:
Azusa will increase procurement of electricity from "eligible" renewable resources until a
target portfolio level of 20% is reached by 2010, measured by the amount of energy
procured in making retail sales of electricity. Azusa will further attempt to achieve a 33% renewable
target or higher by 2020 to the extent there is no technological;logistical;and economic impediments to
do so.
Qualifying Resources:
Electricity produced from the following technologies constitute "eligible" resources: biomass,
solar thermal, photovoltaic, wind, geothermal, fuel cells using renewable fuels, hydroelectric
generation, digester gas, municipal solid waste, landfill gas, ocean wave, ocean thermal, tidal
current,renewable components of system sales from other parties,or renewable distributed generation
on the customer side of the meter. Facilities can be located anywhere in the interconnected
transmission system located in the west,and with preferences to resource locations within California.
Timing of Long-Term Resource Additions:
Renewable resources will be procured to the extent they fulfill unmet needs identified in
Azusa's long-term resource plan and supplement short-term resource needs. Azusa will not
terminate, abrogate, or otherwise end any existing long-term contract in order to meet the
renewable target portion of its energy portfolio.
Price Benchmarking:
The appropriate reasonable prices to be paid for renewable resources will be established by the
Azusa's Utility Board and should to the maximum extent feasible consistent with the price
benchmarks set by the CPUC for the State's investor owned utilities and shall include the
cost of associated transmission to deliver the energy to Azusa's service territory.
Limit on Subsidies:
Azusa may utilize the funds generated by the"public benefits charge" (PBC) that Azusa adds
as a surcharge to retail bills pursuant to the provisions of AB 1890 to subsidize the above-
market costs of renewable energy. To the extent such funds are not available from PBC, Azusa
may defer the renewable resources procurement up to three years as described below until such
funds are budgeted and become available.
Flexible Compliance:
Azusa is authorized to purchase the"environmental attributes"or"green tickets"from a renewable
resource,without purchasing the associated energy,to comply with this RPS.Also,"catching-up"for
procurement shortfalls and"banking"excess procurements for credit in the future over as many as
three years will be allowed.However,procurement preference should be given to physical renewable
resources in the first instance.
System Rate Impact:
The addition of renewable energy resources shall not increase system wide rates by more than a level by the
Utility Board,currently set at 7%of the retail rates.
191
Background on
California Renewable Portfolio Standards
The term and concept of"Renewable Portfolio Standard"(RPS)generally
refers to a set of California state laws,regulations,and executive orders requiring
electric utilities to serve a specified percentage of their retail loads from certified
renewable resources.Certified renewable resources are the eligible renewable
resources that are formally certified by the California Energy Commission and
may include biomass burners,solar thermal,photovoltaic,wind,geothermal,fuel
cells using renewable fuels,small hydroelectric generation of 30 megawatts or
less,digester and landfill gas.
Specific target dates are established under RPS at which dates prescribed
amount of renewable energy has to be contracted. Additionally,specific
measurement methods, implementation rules and schedules,as well as
jurisdictional oversight,policy setting, rights,and responsibilities are also set forth
and,if applicable,established.
The RPS was first codified by the virtue of enacting in 2002 the California
Senate Bill 1078(SB 1078).SB 1078 required that electric corporations
establish and reach the specific target in terms of procurement of renewable
energy. Specifically,beginning in 2002 electric corporations had to increase
their renewable resources procurement by at least 1%per year.Additionally,
20%renewable procurement by year 2017 was required(as a percentage of
retail load served). It is important to note that"flexible rules of compliance"were
explicitly permitted whereby electric corporations could apply excess RPS
procurement in one year to subsequent years or carry a RPS procurement
deficiency for up to three(3)years forward.
Most of the prescriptive language of SB 1078 targeted the Investor Owned
Utilities(the IOUs)wherein the CPUC was directed to plan and organize the
enforcement,tracking,and validation rules. In reference to the Publicly Owned
Utilities(the POUs),such as Azusa,the bill stated:
"387. (a)Each governing body of a local publicly owned electric
utility,as defined in Section 9604,shall be responsible for implementing
and enforcing a renewables portfolio standard that recognizes the intent
of the Legislature to encourage renewable resources,while taking into
consideration the effect of the standard on rates, reliability,and financial
resources and the goal of environmental improvement".
In 2003, responding to Governor Schwarzenegger's call to accelerate the RPS,
the California Energy Commission(CEC),the California Power Authority(CPA),
and the California Public Utilities Commission(CPUC)in their Energy Action
192
Background on California Renewable Standards
September 20, 2010
Page 2
Plan I (EAP I) proposed to accelerate the SB 1078 20% RPS target, such that
it would be reached by 2010 rather than 2017.
In 2005 that same three energy agencies in their Energy Action Plan II (EAP II)
reviewed the Governor's 2003 call for establishing an additional RPS target of
33% by 2020 and determined that reaching that objective was feasible.
In September of 2006, California Senate Bill 107 (SB 107) codified the EAP I
-proposed accelerated 20% RPS by 2010 into the state law. In addition to
accelerating the 20% RPS goal to 2010, SB 107 also introduced the concept
of Renewable Energy Credits (RECs). Namely, the provision requires that a
formal tracking program be established to allow for formalized accounting and
prevent double counting of the certified renewable energy credits - RECs.
Additionally, in recognition of potential difficulties in delivering the physical
renewable energy to retail loads, SB 107 allows to procure "unbundled" RECs
from certified renewable energy producers and use such in partial satisfaction
of the 20% RPS requirement. Moreover, the flexible implementation rules of SB
1078 were reaffirmed and made applicable to all years (i.e. to all years before
and after the retail energy seller reaches the 20% RPS goal).
The bill also requires that POUs report the RPS goals established by their
respective councils/boards as well as the progress in attaining such goals to the
California Energy Commission.
(NOTE: In light of the recent failure of the Legislature to vote on the
proposed SB 722, SB 107 is still in effect as of today. SB 722 will be
discussed further on).
In November 2008, Governor Schwarzenegger issued Executive Order S-14-
08 whereby he ordered that, among other considerations, all retail sellers of
electricity shall serve 33% of their load with renewable energy by 2020.
Please note that in absence of any subsequent executive orders, whether by
Schwarzenegger or his successors, or any new law that would change or
otherwise trump this order, Order S-14-08 shall stand.
A subsequent, 2009, Executive Order S-21-09 stipulated that California Air
Resources Board (ARB) develop by July 31 , 2010 enforceable regulations
consistent with the 33% RPS outlined in Order S-14-08. Please note that ARB
is also charged with developing and enforcing California regulations pertinent to
Assembly Bill 32 (Global Warming Solutions Act) which bill targets emissions of
greenhouse gases (GHG) and is very pertinent to, among other, coal fired
electricity generators such as San Juan.
2
193
Background on California Renewable Standards
September 20, 2010
Page 3
(Note: Due to the general expectation that Senate Bill 722 would amend
portions of Executive Order S-21-09 by the end of August 2010, ARB
postponed its originally scheduled July 31, 2010 development of mandated
regulations.
Considerable time and efforts were espoused by the California Legislature this
year to draft, implement, and enact the new Senate Bill 722. In general SB 722
would capture, modify, add to, and/or append all current RPS regulations, orders,
and provisions. Among those, target date for the 20% RPS (currently Dec 31
2010) was to be postponed till December 31 2012, an interim goal of 25% RPS
would be set in December 31 2016, and the 33% RPS goal by December 31 ,
2020 would be reaffirmed. Additionally, and very importantly, the proposed SB
722 would establish hard limits on the volume of renewable energy that could be
imported into the state (25%) vs. the renewable energy produced within the state
(75%). It would also limit portion of the RPS requirements that could be satisfied
by the unbundled RECs to 10%.
As it appears, due to the lack of time and/or scheduling gridlock on the last day of
this year's legislative session, SB 722 "died" in Senate.
It should be noted that as drafted, SB 722 did not have the Governor's support,
who assertively stated his preference for the 40% import/60% in-state RPS
apportionment. PG&E, a major investor owned utility, also supported that
apportionment methodology.
In light of the California Senate's failure to vote on SB 722, the ARB renewed its
previously suspended efforts to draft regulations implementing Governor's
Executive Order S-21-09 and establishing enforcement of the 33% RPS by 2020
goal. (ARB session is now scheduled for September 23, 2010).
Outline of Azusa's actions in implementing its RPS policy
On May 21, 2003, in response to SB 1078, Azusa established the City of Azusa
Renewable Power Portfolio Standard (Azusa RPS). Consistent with the spirit
of SB 1078, the Azusa RPS established a target for its renewable power portfolio
at 20% by 2017. Moreover, the RPS listed the types of qualifying renewable
resources that could be potentially utilized or contracted. Additionally, provisions
for using the Public Benefit Charge (PBC) monies, price benchmarking, flexible
compliance, and maximum permissible effect on the rates were rendered. Of
particular importance was a provision allowing Azusa L&W to defer procurement
of renewable resources if such procurement were to lead to (uneconomic)
abrogation or termination of the preexisting long term power contracts.
194
Background on California Renewable Standards
September 20, 2010
Page 4
In 2007 Azusa's RPS was revised in response to new or changed RPS
requirements rendered in SB 107 and the EAP II. The revisions included
changing the 20% RPS goal from 2017 to 2010, adding the 33% RPS by 2020
with the caveat that there would not be insurmountable technological, logistical,
or economic impediments encountered in doing so. Additionally, the maximum
allowable system rate impact was increased from 5% to 7%.
Prepared by Yarek Lehr, Assistant Director of Resource Management
4 195
yy, iai - .w.
AZ LISA
_ CHT a k'ArEb
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE SA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: SEPTEMBER 27, 2010
SUBJECT: NORTHSIDE PARK WALKING PATH LIGHTING
The Northside Park is located along Eleventh Street between McKeever and Angeleno Avenue.
Located on the northeast portion of Northside Park along 12th Street, there is a concrete paved
walking path, consisting of about 3/8 of a mile walking distance. This walking path within the
Northside Park path is enjoyed by many residents for walking exercises within a green grass park
setting.
The northern portion of the walking path at Northside Park is not illuminated. The southern
portion of the walking path, adjacent to 12th Street, is lit by adjacent roadway lights. During the
evening hours when many residents wish to enjoy walking at the path, the northern portion isn't
as inviting because it is dark.
Azusa Light & Water inspected the northern portion of the walking path and discovered that area
lighting is feasible and could be mounted on the existing power poles. The estimated cost to
furnish and install area lighting is $6,500 which consists of five (5) — 100 Watt HPS
conventional lighting fixtures mounted on pole mast arms. This lighting installation can be
undertaken by Azusa Light & Water, using in-house resources of the Electric Division.
Since homes border the northside of the park, we performed an educated "eyeball" assessment of
the impact of such lighting on the homeowners and believe it would be minimal. If necessary,
shields could be added to one or more lights at a later time.
The on-going cost to operate and maintain (O&M) will be charged to the Parks & Family
Services Department annual Operating Budget under the Utility's Rules and Regulations on
Outdoor Lighting (Schedule OL). The annual O&M cost under Schedule OL is $14.26 per month
per fixture. The Parks Department is in agreement with the proposed lighting project.
Attached is an overview of the Park layout, a picture of the power pole line and a picture of the
proposed lighting fixture.
196
Northside46.
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to Key: (i,=Playground =Parking Lot =Restro.i
istar`,Cu, 3`r.rtl.,,.
197