HomeMy WebLinkAboutAgenda Packet - March 22, 2010 - CC * I-
A_ZUS'r1'ATFR r
LIGHT A
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AZUSA LIGHT & WATER MARCH 22, 2010
729 N. AZUSA AVENUE 6:30 P.M.
AZUSA, CA 91702
AZUSA UTILITY BOARD
URIEL E. MACIAS
CHAIRPERSON
ROBERT GONZALES JOSEPH R. ROCHA
VICE CHAIRPERSON BOARD MEMBER
KEITH HANKS 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.)
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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 January 25, 2010 as written.
UB Min
Jan-25-10.pdf
2. Minutes. Recommendation: Approve minutes of regular meeting on February 22, 2010 as written.
cep-
UB Min
Feb-22-10.pdf
3. Award Contract to Perform Maintenance on Five Circuit Breakers. Recommendation: Approve
the selection of Applied Engineering Concept (AEC) to perform maintenance on five Square D outdoor
vacuum circuit breakers at the Azusa Substation at a cost not-to-exceed $11,900.
AEC Approval.pdf
4. Adoption of Electric Division Rubber Glove Program. Recommendation: Adopt the Azusa Light &
Water Rubber Glove Program Manual dated January 2010 as per the recently adopted International
Brotherhood of Electrical Workers (IBEW) Memorandum of Understanding.
Rpt-Rubber Manual-Ex-Rubber
Gloving.pdf Gloving Prog.pdf
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E. SCHEDULED ITEMS
1. Request to Award Contract for Walk-In Cash Payment Centers to IPP of America, Incorporated.
Recommendation: Approve awarding of a three-year contract with a two-year renewal option to IPP of
America, Inc. for walk-in cash payment centers.
Rpt Walk-In Ex Agnnt w-IPP.pdf Ex-Map.pdf
Pymts.pdf
F. STAFF REPORTS/COMMUNICATIONS
1. Lodi Energy Center Update
Lodi Energy Cntr
Update.pdf
2. Quarterly Fuel Cost Adjustment for San Juan Resource
Q- 11;211.
Rpt-San Juan San Juan FCA_1.pdf
FCA_1.pdf
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."
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AZUSA
AGENDA ITEM
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ALAN KREIMEIER, DIRECTOR OF ADMINISTRATIVE SERVICES/CFO Ak—
VIA:
F. M. DELACH, CITY MANAGER
DATE: MARCH 22, 2010
SUBJECT: FISCAL YEAR 2009-10 MID-YEAR BUDGET REVIEW
RECOMMENDATION
There is no recommendation. Staff will be providing a presentation at the meeting in order to
provide Council with an update of the City's fiscal condition in preparation for the upcoming
budget process.
BACKGROUND
The FY 2008-09 Budget was adopted in June of 2009 with an operating surplus in the City's
General Fund. Since this time, events have taken place which impact the City's finances. The
purpose of the mid-year review is to identify and explain these impacts to the Council and to
seek direction with respect to both the remainder of the current fiscal year and the preparation of
the budget for the upcoming year.
Based upon the direction received from Council at the workshop, staff will prepare necessary
actions to implement any changes and provide them to Council for approval.
FISCAL IMPACT
There is no fiscal impact as a result of this staff report.
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Mid -Year Budget
Presentation
March 22 , 2010
Mid -Year Overview
• Progress towards major goals continues Despite Economic
Downturn
• Post Audit review of FY 2008-09 ending General Fund balance
• Projected FY 2009-10 year end General Fund balance
• Impacts from State Budget: Prop 1A and RDA Takings and Deferral
of Payments for HUTA etc.
• Continuing conservative fiscal practices are called for in light of slow
economic recovery. Goal of Additional M&O reductions next year,
hiring freeze excepting critical/ essential positions.
. •
Continuing Progress
Improved Management of Workers Compensation program
FY 2009-10 Budgeted Capital Projects on Track for Completion
Target Groundbreaking and Initiation of Construction
Completion of Vulcan mining permit EIR and Review by
Planning Commission
Atlantis Gardens Property Acquisitions
Renewed Development Activity in Rosedale
Purchase of Vacant Enterprise leasing Site on Azusa Ave
Revised
Adopted Revised
Budget Net Revisions Budget
Beginning Balance (June 30, 2009) 8,129,765 (522,720) 7,607,045
FY 09-10 Estimated Revenues 32,423,925 - 32,423,925
Transfers In 1 ,036,550 - 1,036,550
Total FY 09-10 Sources 33,460,475 - 33,460,475
FY 09-10 Estimated Expenses 29,111,250 193,650 29,304,900
Transfers Out 4,199,010 - 4,199,010
Total Uses 33,310,260 193,650 33,503,910
FY 09-10 Surplus/(Deficit) 150,215 (193,650) (43,435)
Ending Balance 8,279,980 (716,370) 7,563,610
Economic Factors
• Annual inflation rate Jan 09 to Jan 10 for the LA
Area is 1 .8%
• Interest rates remain at historic lows (LAIF rate
below 1 % )
• Regional Unemployment Remains High ( 13.2%
for January of 2010 as reported by EDD)
• Housing Prices Appear to be Stabilizing
Revenue Issues
• Property Taxes
• VLF in Lieu Taxes
• Sales Tax
• Utility Related Revenues
• Interest Income
• Business License Taxes
• Building Permits
Expenditure Issues
• State Budget Takings and Deferrals- What's next?
• Liability/ Workers Comp Expenses
• Proposed Fire Safety Contract increase ($130,000)
• Fuel price fluctuations (effect on contracts, etc.)
• Employee contract cost impacts (Potential impact of
negotiated COLA's)
Fiscal Prudence
Due to Fiscal Prudence for several years prior to the
current economic downturn, the City had Revenues in
excess of Expenditures.
That surplus went back into the General Fund allowing
reserves to increase and insure their availability for
contingencies and economic downturns.
Some Use of Reserves May be necessary to offset
reduced revenues and maintain Service levels until
Economic Recovery is Complete or New Revenues
come On-line (Target, Vulcan, MRF).
Preliminary Budget Directives
• Reduce General Fund related M&O costs
• Defer General Fund Capital Outlay Expenditures
• Any new Program Expenditures must be
matched with new revenues (Grants, etc. )
• Freeze all vacant positions until reviewed by City
Manager to determine if immediate critical need
exists for replacement
• New positions only if supported by increase in
ongoing revenues or mandated by Council
policy
Budget Philosophy
• Align Department Budgets with Council Goals.
• Prepare an easily understood working budget
document that will be consistent from year to
year and a reference document during the year.
• Match operating revenues with operating
expenses.
• Use of reserves for capital , one time
discretionary expenses and emergencies
• Maintenance of essential services
FY 2010- 11 Budget Issues
• Preserving City services
• Focus on cost cutting/ revenue generating
measures
• Impacts on City of continued State/
Federal response to recession conditions
• Difficulty/ uncertainty of financial projection
in the current economic climate
• Possible Use of Reserves to Balance
Budget
FY2OIO- 11
• February 9 Budget materials distributed to Departments
• March 4 Final date for Personnel Request Submittals
• March 18 Departmental Budget requests returned to Finance
• March 22 Mid-Year Budget review at Utility Board meeting
• April 12-29 Budget meetings with Departments & City Manager
• May 13 Preliminary Budget balanced by City Manager
• June 1 City Council Budget Study Session (tentative date)
• June 21 Final Budget adopted by City Council
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'AZUS ,'
CONSENT ITEM
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: F. M. DELACH, CITY MANAGER
DATE: MARCH 22, 2010
SUBJECT: RESOLUTION FOR THE SELECTION OF MAYOR PRO TEM
RECOMMENDATION
It is recommended that City Council approve the revised language in the resolution for selection
of Mayor Pro Tern.
BACKGROUND
At the March 15, 2010 City Council meeting the City Council directed staff to bring forth a
revised resolution for the selection of the Mayor Pro Tern. Resolution 97-051 was originally
adopted in 1997. The Council asked that the resolution be changed with the following language
(underlined):
Selection Criteria. Annually, at the City Council meeting on the third Monday in March,
the mayor pro tern shall be that council member with the greatest seniority, which has
not previously served as mayor pro tem. However, if such council member does not
accept the nomination for mayor pro tern, then the next most senior council member,
which has not yet served as mayor pro tem, shall be offered the position of mayor pro
tem. However, if two or more councilmembers qualify for the position of mayor pro tern
by virtue of having equal seniority, then that council member who received the highest
number of votes in the March general City election shall be the mayor pro tem.
FISCAL IMPACT
None l
ATTACHMENT � `,
LY
Revised Resolution /1,)
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RESOLUTION NO. 10-C
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, AMENDING AND RESTATING RESOLUTION NO. 97-051
CONCERNING THE SELECTION CRITERIA AND TERM OF THE MAYOR
PRO TEM.
BE IT RESOLVED by the City Council of the City of Azusa as follows:
SECTION 1. That the City Council of the City of Azusa hereby amends Resolution No. 97-051 in its entirety
and adopts the following mayor pro tern selection criteria and term of office.
(1) Intent. The primary intent of this Resolution is to ensure that the city's mayor pro tem is selected on
objective criteria. Criteria such as seniority and public support as expressed in the number of votes
received in an election are to be used as the basis for selecting the mayor pro tem. It is the
Council's intent to ensure that each council member serving on the Council receives the
opportunity to serve as mayor pro tern at least once during his or her four-year term as a council
member.
(2) Selection Criteria. Annually, at the City Council meeting on the third Monday in March, the mayor
pro tern shall be that council member with the greatest seniority, which has not previously served as
mayor pro tern. However, if such council member does not accept the nomination for mayor pro
tern, then the next most senior council member, which has not yet served as mayor pro tem, shall be
offered the position of mayor pro tern. However, if two or more councilmembers qualify for the
position of mayor pro tern by virtue of having equal seniority, then that council member who
received the highest number of votes in the March general City election shall be the mayor pro tern.
(3) Selection Criteria in the Event All Have Served. If all council members have previously served as
mayor pro tern, then the mayor pro tern shall be that councilmember with the greatest seniority. If
such councilmember does not accept the nomination for mayor pro tern, then the next most senior
councilmember shall be offered the position of mayor pro tem. However, if two or more council
members qualify for the position of mayor pro tern by virtue of having equal seniority, then that
council member who received the highest number of votes in the March general City election shall
be the mayor pro tem.
(4) Term. Mayors pro tern shall serve from March until March of each year succeeding year. A new
successor shall be selected on the third Monday in March in even numbered years and at the
reorganization meeting in March in odd numbered years. Notwithstanding this section, the mayor
pro tern shall continue to serve until his or her successor takes office.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
ORANGE\MMARTINEZ\66404.I
PASSED, APPROVED AND ADOPTED this 22nd day of March, 2010.
JOSEPH R. ROCHA
MAYOR
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of
Azusa at a special meeting thereof, held on the 22nd day of March, 2010,by the following vote of the Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
VERA MENDOZA
CITY CLERK
ORANGE\MMARTINEZ\66404.1
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CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY,JANUARY 25,2010—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 Pro-Tem Gonzales called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES,CARRILLO,ROCHA
ABSENT: BOARD MEMBERS: MACIAS, HANKS
ALSO PRESENT: Also Present
City Attorney Ferre,City Manager Delach,Assistant City Manager Makshanoff,Director of Utilities Morrow,
Assistant to Utilities Director Kalscheuer, Assistant Director of Water Operations Anderson, Distribution
Supervisor Kjar, Assistant Director-Customer Care & Solutions Vanca, Senior Electric Engineer Langit,
Electric Engineer Associate Vuong, City Clerk Mendoza, Deputy City Clerk Toscano.
PUBLIC PARTICIPATION
Pub Part
None.
UTILITIES DIRECTOR COMMENTS Dir Comments
Director of Utilities Morrow stated that representatives of Lindsey Manufacturing have an item on the agenda G. Morrow
and introduced Distribution Supervisor Kjar who stated that Lindsey is preparing to do research on and testing D. Kjar
of one of their new products currently being developed for power lines and would like Azusa Light and Water Re: Lindsey
to attach experimental monitoring devices on the Azusa-owned portion of the power lines to verify and test if Manufacturing
their new innovative product would perform in actual conditions as designed, it is item D-2 on the agenda.
UTILITY BOARD MEMBER COMMENTS Brd Mbr Cmts
Board Member Gonzales asked that the meeting be adjourned in memory of Aurora Carrillo Wilson,mother of Adjourn in
Chairman Uriel Macias. Memory
A. Carrillo
Wilson
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The CONSENT CALENDAR consisting of Items D-1 through D-7, was approved by motion of Board Consent Cal
Member Rocha, seconded by Board Member Carrillo and unanimously*carried D-1 & 2
I. The minutes of the regular meeting of November 23, 2009, were approved as written. Min appvd
2. SPECIAL CALL ITEM. Spec Call
3. Approval was given for the proposal by Utility Financial Services(UFS)to conduct financial review of UFS Financial
electric fund;and the City Manager was authorized to execute professional services agreement for not- Review of
to-exceed amount of$17,500 for phase one services. Electric Fund
4. Plans and specifications for Project LD2010-2 to furnish and install underground electric substructures Plans &Specs
on Lark Ellen south of Gladstone were approved and the City Clerk was authorized to advertise for bids. Proj DL2010-2
5. The scope of work for an Electric Network Supervisory Control and Data Acquisition System(SCADA) SCADA appvd
was approved and staff was authorized to prepare, issue, and solicit RFP. RFP
6. Approval was given for a one-time payment in amount of$172,844.72 to SCE for the certified metering One time pymt
and communication facilities installed at the Azusa and Kirkwall Substations; and the following SCE
resolution was adopted:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,CALIFORNIA,AMENDING Res. 10-C7
THE FISCAL YEAR 2009-2010 OPERATING BUDGET FOR THE ELECTRIC UTILITY TO FUND Amend
A PAYMENT TO SOUTHERN CALIFORNIA EDISON FOR METERING SERVICES PROVIDED Bdgt Elect
AT ELECTRIC SUBSTATIONS. Fund
7. Approval was given to extend contract for Civiltec Engineers for South Reservoir Demolition and Design Extend Civiltec
Services to March 31,2010. Engr
SPECIAL CALL ITEMS Special Call
Research Participation and Confidentiality Agreement with Lindsey Manufacturing.
Board Member Rocha questioned inconsistencies in the staff report and agreement regarding costs bore by Agmt Lindsey
City and/or Lindsey. Director of Utilities Morrow responded that there would be no cost but if there was, Rocha
under the agreement, Lindsey will be responsible. City Attorney Ferre concurred that under the agreement Questions
Lindsey will bare cost, if any and City Manager Delach also agreed.
Moved by Board Member Carrillo,seconded by Board Member Rocha and unanimously*carried that Staff be Research
authorized to enter into Research Participation and Confidentiality Agreement with Lindsey Manufacturing; Participation
and that the Director of Utilities be authorized to sign said agreement,subject to final review and approval by &Agmt w/
City Attorney. Lindsey Man.
SCHEDULED ITEMS Sched Items
Assistant to Utilities Director Kalscheuer presented request for funding by California Resource Connections, Request
for Litter Clean-up and Smart Gardening Workshop, stating that the Smart Gardening workshop will be on Funding
Saturday,April 10,2010,and is in the amount of$7,425 and$3,900 will be for compost bins,so the request California
is lower than last year. The Think River!event will be held on Saturday,April 17,2010,and be in the amount Resource
of$7,400,exactly the same as last year.He stated that the State reduced this grant 95%this year due to budget Connections
cuts and so the water fund is proposed as a changed funding source.
Moved by Board Member Carrillo,seconded by Board Member Rocha and unanimously*carried to approve a Funding
funding request from California Resources Connections,Incorporated(CRC)to conduct said environmental Approved
programs; and authorize payments to CRC in amount of$7,400 from Water Fund and$7,425 from AB 939 Environmental
Fee Funds. Programs
01/25/10 PAGE TWO
005
Director of Utilities Morrow presented item regarding an initiative scheduled for the June 8t°Ballot Measure Dir of Util
entitled "New Two-Thirds Requirement for Local Public Electricity Providers Act", stating that PG&E is New Two-
behind the Act to reduce competition. It would impact the ability of public-owned electric utilities to expand Thirds Rqmt
service beyond their current boundaries and would impact the ability of cities and counties to engage in Local Public
community choice aggregation. Discussion was held regarding impacts of the issue. Elec Prov Act
Moved by Board Member Carrillo,seconded by Board Member Rocha and unanimously*carried to adopt an Oppose
OPPOSE position on the "New Two-Thirds Requirement for Local Public Electricity Providers Act" New Two-
scheduled for vote on the June 8, 2010 state-wide ballot. Thirds,etc.
Director of Utilities Morrow presented item regarding EPA Endangerment Finding Related to Greenhouse Dir of Util
Gases,stating that in December EPA found that GHG are an endangerment and new power plants are subject Greenhouse
to laws, regulations and control under Clean Air Act. Gas
Moved by Board Member Rocha,seconded by Board Member Carrillo and unanimously*carried to adopt an Oppose
OPPOSE position on EPA Administrator's Finding that, pursuant to Clean Air Act section 202(a), six EPA Findings
greenhouse gases endanger the public health and welfare. GHG
STAFF REPORTS/COMMUNICATIONS Staff Rpts
Utilities Director Morrow presented the Monrovia Nursery Water Rights Update stating that Monrovia Nursery Dir of Util
has decided not to sell its water rights to one or more outside entities and to instead "sell" such rights to its Monrovia Nurs
stockholders. Water Rights
Assistant Director- Customer Care & Solutions Vanca presented the Customer Service Annual Statistics Asst Dir Cust
Update which included Total Field Visits(ons,offs,check reads,customer requests),bills mailed,online bills, Care Solutions
reminder notices mailed,final notices mailed,customer calls,lobby customers assisted,payments received and
Automated Hone System calls.
Utilities Director Morrow presented an update on the Lodi Energy Center Update stating that the project is still Dir of Util
awaiting issuance of a license to construct the Lodi Energy Center from the California Energy Commission Lodi Energy
(CEC). Center Update
Assistant Director of Water Operations Anderson presented the water supply status update which is C. Anderson
summarized as follows: Spreading Grounds are currently gaining water at a rate of 3 feet per week;current Update on
overall year to date is 14.41"vs. average of 9.97"— 145% of average; statewide snowpack water content is Water Supply
115%of average; San Gabriel River inflow has increase as has local snow pack,but the drought is not over.
Environmental Protection Agency(EPA)Declaration that Carbon Dioxide is Toxic and a Hazardous Waste, Dec Carbon
was not presented. Dioxide not
presented
Director of Utilities Morrow announced and invited Board Members to the American Public Power APPA
Association (APPA)Annual Conference June 19-23, 2010 Orlando,FL Conference
Moved by Board Member Carrillo,seconded by Board Member Rocha and unanimously*carried to adjourn. Adjourn
TIME OF ADJOURNMENT: 7:06P.M.
SECRETARY
NEXT RESOLUTION NO. 10-C8.
*Indicates Macias and Hanks absent.
01/25/10 PAGE THREE
006
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AZUSA
:IG 9T & WATER
CITY OF AZUSA
MINUTES OF THE REGULAR MEETING
OF THE AZUSA UTILITY BOARD/CITY COUNCIL
MONDAY,FEBRUARY 22,2010—6:32 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 Macias called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS
ABSENT: BOARD MEMBERS: HANKS,ROCHA
ALSO PRESENT: Also Present
City Attorney Ferre, City Manager Delach, Assistant to Utilities Director Kalscheuer, Assistant Director of
Water Operations Anderson, Engineer Associate Vuong,Business Development/Public Benefits Coordinator
Reid,Caption Momot, City Clerk Mendoza,Deputy City Clerk Toscano.
PUBLIC PARTICIPATION Pub Part
None. None
UTILITIES DIRECTOR COMMENTS Dir Comments
None. None
UTILITY BOARD MEMBER COMMENTS Brd Mbr Cmts
Board Member Gonzales requested that certificates of recognition be prepared in honor of the Azusa Varsity Cert of Rec
Football Team as they made it to the semi-finals for CIF. This is in addition to the certificates of recognition to Azusa Football
the Azusa High Aztec Band. Moved by Board Member Gonzales, seconded by Chairman Macias and &Band
unanimously* carried to approve the preparation of the certificates to be presented at the regular Council
Meeting of March 1, 2010.
The CONSENT CALENDAR consisting of Items D-2 through D-6, was approved by motion of Board Consent Cal
Member Carrillo, seconded by Board Member Gonzales and unanimously* carried. Item D-1, Minutes of D-2-6
January 25th were not approved due to lack of a quorum.
1. The minutes of the regular meeting of January 25,2010,were NOT approved since the Chairman Macias Minutes
chose to abstain from voting due to prior absence which resulted in lack of quorum; it was agreed that Not Appvd
minutes should be brought back for consideration at the meeting of March 22, 2010.
007
2. The contract for Project LD2010-2 for furnishing and installing underground electric substructures at Perry C.
Lark Ellen and Gladstone was awarded to Perry C. Thomas, Incorporated in amount of$95,016.90. Thomas
3. Approval was given for an amendment to Hall&Foreman contract in amount of$23,625 for additional Hall &
design engineering services for Project W-265,Pipeline Replacement Project. Foreman
4. Approval was given for an amendment of J. Fletcher Creamer & Sons, Incorporated contract for J. Fletcher
additional work for Project W-263,Water Main Cement Mortar Lining Project in amount of$290,000. Creamer
5. Approval was given for modifications to the Distributed Solar Partnership Program Funding in Senate Bill 1
compliance with Senate Bill 1 (SB 1).
6. Approval was given for participation in Southern California Public Power Authority(SCPPA)Ice Energy Ice Energy
Demand Response Program. Demand Res
SPECIAL CALL ITEMS Special Call
City Manager Delach addressed items D-3&4,stating that questions had been received on these items via the City Mgr
e-mail and noted that in the areas that are in the old Azusa Valley Water system, it has old infrastructure and Comments
its not uncommon for incidents like this to come about as engineers are making the best estimates they can.
Further, the underestimated number of access holes, again is justifiable and understandable in an old water
system. Assistant Director of Water Operations Anderson stated that one question was if it was a survey for
the design purposes, but he clarified that it was the new alignment of the water line.
STAFF REPORTS/COMMUNICATIONS Staff Rpts
Assistant to Utilities Director Kalscheuer presented the Quarterly Financial Report for Water and Electric Quarterly
Funds providing detailed information on the Cash/Reserve Prior Fiscal year End,Revenues/Expenses Capital Financial Rpt
Expenditures/Debt Service,Adjustments and Total Expenditures and Transfers Out.Lengthy discussion was Water and
held between Board Members and Staff regarding the information presented. Electric Funds
Moved by Board Member Gonzales seconded by Board Member Carrillo and unanimously*carried to adjourn. Adjourn
TIME OF ADJOURNMENT: 7:00P.M.
SECRETARY
NEXT RESOLUTION NO. 10-C16.
* Indicates Hanks and Rocha absent.
02/22/10 PAGE TWO
008
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AZUSA
r.ur a Nsrry
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 22, 2010
SUBJECT: AWARD CONTRACT TO PERFORM MAINTENANCE ON FIVE SQUARE D
OUTDOOR VACUUM CIRCUIT BREAKERS AT THE AZUSA
SUBSTATION
RECOMMENDATION
It is recommended that the Utility Board approve selection of Applied Engineering Concepts
(AEC) at a cost not-to-exceed $11,900 to perform maintenance on five Square D outdoor
vacuum circuit breakers at the Azusa Substation.
BACKGROUND
In the electric distribution substation, circuit breakers are one of the main components used in
feeder protective scheme. It is used as an electric gate to allow or disrupt the flow of electricity
on a feeder. Circuit breakers are normally in a closed position. When there is an electrical fault
on a circuit, electronic sensor such as the relay will trigger the circuit breaker to open to disrupt
the flow of the electrical current to protect lives and properties. Much like insurance policy,
unless there is a fault, circuit breakers are there but are rarely being exercised.
The Manufacturer's recommendation for circuit breaker maintenance interval is three years or
3,000 operations whichever occurs first. These five circuit breakers on the south bus at Azusa
Substation were tested and maintained in September 2005 and are due to be re-tested and re-
inspected. It will require approximately five working days to complete this project.
009
Circuit Breaker—Preventive Maintenance
March 22, 2010
Page 2
The scope of work based on the guideline by the International Electrical Testing Association
(NETA) has been used to solicit proposals from specialized contractors. Subsequently, staff
received three comparable quotations as shown below for the circuit breakers preventive
maintenance work:
Company Bid Amount
Square D— Schneider Electric $17,200.00
Pacific Industrial Electric $14,500.00
Applied Engineering Concepts $11,900.00
After careful evaluation of the three bids, staff has determined that the bid of AEC has met all
requirements for this work and is hereby recommended for contract award. Staff will prepare the
Maintenance Agreement to be entered by AEC and the City.
FISCAL IMPACT
Adequate funds are included in Electric Fund Capital Improvement Project budget for Fiscal
Year 2009-2010 under project number 73010A.
Prepared by:
Hien K. Vuong—Electrical Engineer
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CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 22, 2010
SUBJECT: ADOPT AZUSA LIGHT & WATER - ELECTRIC DIVISION RUBBER
GLOVE PROGRAM MANUAL AS PER THE RECENTLY ADOPTED IBEW
MEMORANDUM OF UNDERSTANDING (MOU)
RECOMMENDATION
It is recommended that the Utility Board adopt the Azusa Light & Water Rubber Glove Program
Manual dated January 2010 as per the International Brotherhood of Electrical Workers (IBEW)
MOU.
BACKGROUND
On December 21, 2009, the Azusa Utility Board approved a new three year MOU with IBEW.
The MOU provides for the establishment of a formal "rubber gloving" program and for
differential pay for rubber gloving for qualified employees in certain specified job
classifications. The classifications are Electric Supervisors, Line Mechanics, and Apprentice
Line Mechanics.
Rubber Gloving allows the use of rubber gloves by certain trained electric line workers, under
certain conditions, while performing work on energized lines/equipment in excess of 7,500 volts.
The use of rubber gloves is intended to facilitate the safe performance of energized electric line
work which would have otherwise been performed at length, by using the alternative but
burdensome live line "hot-stick" tools. When properly trained workers safely use certified rubber
gloves, the work is done efficiently thereby increase the service levels to customers while
protecting the safety of employees.
011
Consent Item—Adopt Rubber Glove Program Manual
March 22,2010
Page 2
The proposed Rubber Gloving Program Manual has been affirmatively reviewed by utility
management and by the bargaining unit. It is similar to the programs that have been established
by other municipal electric utilities in Southern California. It has the overall purpose of codifying
the details of implementing the rubber gloving, which includes items such as glove certification,
worker training, safety procedures and compensation for the designated employees authorized to
use rubber gloves.
Adoption of the Rubber Gloving Program Manual is considered as an administrative and
procedural step towards implementing the program. Thereafter, Electric Division staff can
commence with worker training, certification and the subsequent purchase thereof of new
certified rubber gloves and related items.
FISCAL IMPACT
The rubber gloving program fiscal impact (5% differential to base monthly salary for the
designated job classifications) has been accounted for, and reported as salary changes during the
City Council meeting - agenda memo held on 21 December 2009.
The accompanying fiscal impact component of program implementation consisting of the unit
cost for new certified rubber gloves and associated training will be determined when quotes are
solicited. These minimal costs will be covered in the electric divisions, annual operating budget,
under Account#s 3340735830 -6566, -6220 & -6225 respectively.
Prepared by: Dan Kjar,-Electric Operations Supervisor
Attachment: Azusa Light&Water Rubber Glove Program Manual
012
aewosiev /Ati.
LIGHT 0/ ATEA
Rubber Gloving
Mannal
This Rubber Gloving Manual incorporates policy and procedures
adopted by the City of Azusa-Rubber Gloving Committee.
RUBBER GLOVING MANUAL - I - January 2010
013
INTRODUCTION
The City of Azusa("City" or"Department") and the International Brotherhood of
Electrical Workers, Local 18 ("the Union") are committed to working together to find
ways to improve operational efficiencies and increase service levels while protecting the
safety of employees. The use of rubber gloves on energized lines and equipment in
excess of 7,500 volts is one such work practice that will help the City to achieve these
objectives. In support of this goal, the City and the Union have developed this Rubber
Gloving Program ("Program"), which addresses work procedures, training programs,
certification, safety and equipment.
A. OVERSIGHT COMMITTEE
A permanent Oversight Committee consisting of two (2) members appointed by the
Union and two (2) members appointed by the Light and Water Department shall be
established to meet on a regular monthly basis for one year, then quarterly thereafter.
The Oversight Committee will propose, evaluate, adopt, and interpret mutually
acceptable safety rules, work procedures, training programs, certification procedures
etc. as may be required and will provide overall guidance and direction for the
Rubber Gloving Program. The Director of Utilities, or their designee and the Business
Manager of local 18, or their designee shall be ex-officio members.
The Oversight Committee will be responsible for reviewing the training to be
provided to current employees and any new employees that may be hired after the
Program is adopted.
B. APPLICATION
Unless otherwise stated, the Rubber Gloving Program will apply to only the
following City of Azusa employee classifications:
Electric Distribution Supervisor
Electric Crew Supervisor
Line Mechanic
Apprentice Line Mechanic(during last six months of their apprenticeship)
Rubber glove certification shall be required of all current and future employees listed
in the classifications above. Apprentices shall be permitted to attend rubber gloving
training and certification in the last six months of their apprenticeship with the
approval of the Electric Crew Supervisors.
Newly hired Journeyman Line Mechanics will be considered for attending rubber
gloving training and certification after their first three month performance evaluation
and the recommendation of the Electric Crew Supervisors.
RUBBER GLOVING MANUAL - 2 - January 2010 0
Rubber gloves may be issued and used by other classifications as required by rules
and policies that are outside the scope of this Program. Examples would include but
are not limited to metering, control and electrical panel work, low voltage
installations, water production and control sites, etc.
The rubber glove certified employees who are to perform the work at the job site shall
exclusively determine whether to perform the work with live line tools, rubber
gloving methods or a combination of both.
If rain develops after work has begun and the job must be completed, the live line tool
method can be used. Rubber gloving in the rain is prohibited.
C. MINIMUM CREW SIZE AND COMPLIMENT
The Oversight Committee may discuss crew size and complement. Crew size and
composition will comply with the requirements of the Memorandum of
Understanding between the City and the IBEW, the state and federal laws as they
apply.
D. RETENTION OF LIVE LINE TOOLS
Nothing in this Program will serve as the basis for a reduction in the number of live
line tools that are to be carried on vehicles and/or available for issue to crews.
E. CERTIFICATION
The City retains the exclusive right to certify its employees for rubber gloving work.
The Oversight Committee shall have the authority to accept or reject the training
offered by other entities when considering rubber glove certification for City
Employees.
Employees certified in rubber gloving shall be recertified on an annual basis.
R COMPENSATION
Members of the Oversight Committee may discuss issues related to compensation;
however those issues will be referred to the Human Resources Department and Union
Business office in order to be addressed through the negotiation process.
G. SUPPLIES AND EQUIPMENT
RUBBER GLOVING MANUAL - 3 - January 2010
015
Rubber gloving procedures can begin once the appropriate number of employees on
a crew have been trained and certified by the City and the proper tools and
equipment are present.
FL RUBBER GLOVING PROCEDURES
While the Oversight Committee may review the supplies and equipment that are
used or proposed for rubber gloving procedures, the City shall have the sole
authority to execute requests for services and the purchase of supplies and equipment
1. These procedures shall govern all work on conductors and equipment energized
above 7,500 volts through 15,000 volts nominal phase to phase.
2. Rubber glove work on voltages above 7,500 volts shall be done by utilizing the
principals of"insulate" and "isolate".
a. The worker is "insulated"by using rubber protective equipment and
rubber gloves.
b. The worker is "isolated"by using an approved insulating aerial device
with bucket liners or an insulated work platform, which is an additional
layer of insulation.
3. Personnel shall confine their work to one phase at a time and shall not make
simultaneous contact with any part of the structure or any other phase. (second
point of contact)
4. If rain develops after work has begun and the job must be completed, the live line
tool method can be used. Rubber gloving in the rain is prohibited.
5. Certified rubber glove employees at the job site performing the work shall
exclusively determine whether to perform the work with live line tools or utilize
rubber glove procedures, or a combination of both.
6. The Electric Crew Supervisor in charge of the crew at the job site can overrule the
decision to use rubber glove procedures.
7. All approved rubber protective equipment shall have the appropriate ASTM
markings and have a valid test date before being used.
8. Rubber gloves and sleeves shall be rated class "2". All other rubber protective
equipment shall be rated class "2"or higher.
9. Protective equipment shall be submitted for tests as required or at any time that
they become suspect. The following testing intervals shall be followed unless
more frequent inspection is deemed necessary:
RUBBER GLOVING MANUAL - 4 - January 2010
016
Insulating Gloves 6 months
Insulating Sleeves 6 months
Blankets 6 months
Insulating line hoses and other"soft" cover 12 months
Tupperware and other"hard" cover When found to be
damaged or defective
Hot By-Passes and Mechanical Jumpers 12 months
Aerial Devices 12 months
Digger derrick booms 12 months
Bucket liners ... 12 months
10. All rubber protective equipment shall be visually inspected prior to its use.
11. Rubber gloves shall be visually inspected and given an appropriate air and water
test at the beginning of each work period or whenever their condition is in
question.
12. Rubber gloves shall never be worn inside out.
13. Rubber gloves shall never be worn without approved protectors.
14. Rubber sleeves will be provided and may be used at the discretion of the
employee performing the work.
15. Installing rubber protective equipment on energized lines in excess of 7,500 volts
shall be done only when working from an approved aerial device or insulated
platform.
16. When applying rubber protective equipment, an employee shall always cover the
lowest and closest conductors first. In removing rubber protective equipment, the
reverse order shall be followed. Protective equipment shall be applied from a
position below the conductor whenever possible.
17. Poles, brackets, crossarms and all associated hardware within reach of the
employee's body or tools shall be covered with approved protective equipment to
prevent employees from contacting grounded surfaces. (second point of contact)
18. When work is to be done on or near energized lines or equipment, all energized or
grounded conductors, guy wires or other equipment within reach of any part of
the employees body or the aerial device shall be covered with rubber protective
equipment, except that portion of the conductor or equipment on which the
employee is working.
19. Intentional contact shall not be made with energized lines or rubber protective
equipment with any part of the body except with rubber gloves.
RUBBER GLOVING MANUAL - 5 - January 2010
017
20. Energized conductors shall not be moved without being properly controlled.
21. Aerial devices used for rubber gloving voltages above 7,500 volts shall be
equipped with upper and lower controls. A minimum distance of three (3) feet of
the insulated boom must be extended on all "stinger-type"booms to meet the
dielectric capabilities required for rubber gloving. The insulated portion of
"stinger-type"booms will be marked, and shall not be retracted to a position that
would allow metal parts at the boom tip to come within three (3) feet of metal
parts of the lower boom while working on energized lines.
22. Immediately prior to using aerial devices for high voltage rubber glove work, all
insulated portions shall be visually inspected and wiped clean. Anything which
adversely affects the insulation of the device shall be removed. This includes
insulator washing hoses, rope or cable or other equipment.
23. While working from a bucket of an aerial device, all employees shall guard
against the static and induced electrical charges that may be present on metal parts
at the boom tip.
24. While working from an approved aerial device, the operator shall notify other
employees prior to moving.
25. Approved insulated aerial devices shall not be used for rubber gloving procedures
involving voltages above 7,500 volts unless it has passed a dielectric test and
boom certification document is available for review.
26. Insulated booms of aerial devices, line washing trucks and digger derrick trucks
shall pass periodic dielectric tests every 12 months and a certification document
shall be available for review. Failure of the chassis isolating system will not
prevent the use of a vehicle for rubber gloving; however, it should be repaired as
soon a practical.
a. Insulating devices shall have a periodic dielectric test performed in
accordance with paragraph 5.4.3.2 (5) (a) (b) and 5.4.3.4 (5) (b) of ANSI
Standard A92.2 dated 1990.
b. A minimum distance of three (3) feet has been established for that portion
of the insulated boom that must be extended on digger derrick trucks to
meet the dielectric capabilities of the test. All conductive rope, cables or
other items that bridge the insulated portion of the boom must be removed
for this test.
27. Buckets of aerial devices shall have bucket liners with a liner pan installed prior
to rubber gloving voltages above 7,500 volts.
a. Insulated bucket liners shall have a periodic dielectric test every 12
months performed in accordance with paragraph 5.4.3.5 of ANSI Standard
RUBBER GLOVING MANUAL - 6 - January 2010
018
A92.2 dated 1990 and a certification document shall be made available for
review upon request.
28. At no time shall the insulated boom or bucket contact unprotected conductive or
grounded objects when an employee is gloving energized lines.
29. Only approved live line tools shall be used to operate all fused cutouts or
disconnects unless they have been electrically bypassed.
30. Fiber strap hoists are approved for use on distribution voltages provided that an
approved insulating link stick is installed between the hoist and any other surface
with a different potential.
31. Only approved devices shall be used for picking up or dropping load.
32. When a third person is utilized for a rubber gloving crew, that person shall be
trained in the following:
a. First aid
b. Cardiopulmonary resuscitation
c. Radio procedures
d. Aerial lift operations: (Upper controls, lower controls and aerial rescue
procedures)
33. The use of live line tools in conjunction with rubber glove procedures is to be
limited to situations where safety margins are not decreased by the introduction of
live line tools into the rubber glove environment.
34. The following combination of work methods is not allowed: One rubber glove
certified employee on the pole using live line tools and another employee on an
insulated platform using rubber gloves.
35. At no time shall rubber glove work above 7,500 volts be done except from an
aerial device or insulated platform.
36. Only hydraulic tools connected to the boom tip tool circuit will be permitted to
make contact with energized lines. This does not preclude the use of self-
contained hydraulic and battery operated hand tools. Employees shall avoid
contact with hoses.
37. A tailboard briefing shall be held prior to the commencement of work to establish
the exact procedures to be used and the sequence of work steps. The tailboard
briefing between the person in charge and the crew should address the factors that
may affect the safety and progress of the work such as the weight of the
RUBBER GLOVING MANUAL - 7 - January 2010 01 9
conductor, condition of the pole, cross-arms and other equipment on the pole,
guying requirements and fully explain the following:
a. WHY the work is to be done
b. WHAT is to be accomplished
c. HOW the work is to be carried out
d. WHO will do what tasks
e. Hazards present and precautions to be taken
38. The employee in charge shall ensure that adequate planning has been
accomplished and that protection is in place to guard against the "second point of
contact". No electrical accident is possible without a second point of contact and
the severity of the electrical accident is directly related to the conductivity of the
path to ground or another phase.
39. If additional employees arrive at the site to assist in the work or if a major change
in work practice is necessitated after the work begins, additional discussions shall
take place to clearly establish the procedures to be used and the relevant
information from the original tailboard.
40. If live line tools are to be used in conjunction with rubber gloving procedures, the
tailboard briefing shall clearly establish how the work is to be done so that safety
at the worksite will not be compromised.
41. No-Test Orders on the circuit to be worked upon and any adjacent circuits shall be
considered and requested before rubber gloving work begins. Reclosures shall be
blocked (disabled) while work is in progress.
42. "Primary area" as used in the Rubber Gloving Program is defined as any area
where any part of the body or any conducting object can be brought closer than
twenty-five (25) inches to any energized line, regardless of the rubber protective
equipment.
43. Rubber gloves shall be properly worn before entering the primary area and shall
not be removed until the employee is completely out of the primary area.
44. During the time that a qualified employee is doing work in the proximity of any
exposed energized high voltage equipment and/or conductors, another qualified
employee shall act as an observer for the purpose of preventing an accident and
for effecting a rescue in the event of an accident. (See the Electic Division Safety
Manual Section 16 Worker Requirements 1602-5 on page 103)
RUBBER GLOVING MANUAL - 8 - January 2010
020
45. Electric tools and their power cords shall be removed from the bucket when
working on energized lines.
46. When using hot hoists, an approved insulated link stick shall be installed between
the hoist and any other surface with a different potential.
47. When using the winch line of a material handling aerial device while working on
energized lines, an approved link stick must be used.
I. APPROPRIATE EQUIPMENT TO BE USED
The following equipment and tools are approved for rubber gloving voltages 7,500
through 15,000 in addition to using existing live line tools and work methods:
a. Aerial devices with bucket liners and pans
b. Insulated work platforms
c. Fiber strap hoists with insulated links
d. Load pick-up jumpers
e. Mechanical jumpers and by-passes (15KV)
.L CERTIFICATION
Training established by the Committee will certify who is authorized to perform
rubber glove work on voltages above 7,500 volts but not higher than 17,000 volts.
K. WEATHER CONDITIONS
If rain develops after work has begun and the job must be completed, the live line tool
method can be used. Rubber gloving in the rain is prohibited.
L. RUBBER GLOVE INSTRUCTION
The Committee will develop and recommend a list of candidates for consideration to
perform rubber glove training.
Representatives from the Union and the City will act as observers during the initial
training sessions to ensure that the critical topics are addressed properly by the
instructors. Minor modifications to the curriculum shall be made as soon as possible
and reported to the Committee at its next meeting. If required, the observers may
RUBBER GLOVING MANUAL - 9 - January 2010
021
request a special meeting of the Committee to address significant unresolved issues
that cannot wait until the next scheduled meeting.
Instructor qualifications shall include:
a. A minimum of five (5) years at the journey level
b. Strong leadership skills
c. Superior safety record
d. Variety of assignments
e. Certification in rubber gloving procedures
RUBBER GLOVING MANUAL - 10 - January 2010
022
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AZUSA
.IGiT 4 WATER
SCHEDULED ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES 4.Th
DATE: MARCH 22, 2010
SUBJECT: REQUEST APPROVAL TO AWARD CONTRACT FOR WALK-IN CASH
PAYMENT CENTERS TO IPP OF AMERICA, INCORPORATED
RECOMMENDATION
It is recommended that IPP of America, Inc. be awarded a three-year contract with a two-year
renewal option for walk-in cash payment services.
BACKGROUND
Some Light & Water customers come to our office to pay in cash on Fridays when we are closed.
The security guard informs these customers to either get a money order and put the payment in
the drop box or return on Monday when our office reopens. We want to expand payment service
to these customers.
Last year we searched for a vendor who contracts with certain local businesses that are open
additional hours than Light & Water and accept utility payments. Western Union was unable to
contract with any local businesses and we could not come to agreeable contract terms with
Official Payments Corporation, which contracts with one local business.
IPP of America, Inc. (IPP) already contracts with six local businesses to take walk-in utility
customer cash only payments. Payments are then remitted electronically each business day to
the City and customer accounts are electronically updated. IPP has contracted with over 4,000
businesses throughout California to take cash payments, including in our area:
Azusa Wireless, 630 East Foothill Boulevard, Azusa Mon. — Sat. 10— 7; Sun. 10 - 5
Prime Services, 536 West Arrow Hwy., Covina Mon. —Fri. 10— 5; Sun. 10 - 4
Famsa/Dollar Express, 1421 Azusa Avenue, Covina 7 days per week, 10 - 7
023
Award Contract For Walk-In Cash Payment Centers
March 22, 2010
Page 2
H&J Enterprise, 329 E. Gladstone Street, Azusa
Mon. —Fri. 10—6; Sat. 10—4;
Closed Sun.
Ace Cash Express, 891 Citrus Avenue, Azusa
Mon. —Thurs. 9— 7; Fri. 9— 8;
Sat. 9—6; Sun. 10— 3
Azusa Exxon Gas, 478 West Arrow Hwy., Covina Mon. — Sun. 6 a.m. — 12:00 p.m.
IPP will contract with other local businesses as those interested are identified and deemed viable.
Azusa Wireless alone typically handles about 1,500 payments each month for cell phone, cable,
gas, and credit cards.
This is an added convenience for our cash-paying customers since they will be able to pay their
Azusa Light & Water bill seven days a week. Attached is a service area map with the local IPP
payment offices. Like customers who pay by credit or debit card, there would be a transaction
fee of$2.50 which would be the sole responsibility of the customer.
IPP contracts with Paymentus, the vendor we use for over the phone and internet credit and debit
card payments, to share transaction information so they will show up in real time on our
Customer Service Representatives' (CSR) online agent dashboard owned by Paymentus. This
enables CSR's to immediately be able to answer any customer questions about their payments.
Once approved and implemented, this new payment option will be communicated to customers
by bill message, bill insert, Light &Water web site and poster in our lobby.
The service agreement has been reviewed by our city attorney and is ready for signature.
FISCAL IMPACT
Since customers are paying for this service there will be no fiscal impact to Azusa aside from an
occasional bill insert where we provide customers the locations of these payment offices.
Prepared by: Karen Vanca, Assistant Director Customer Care & Solutions
Attachments:
Map—Cash Payment Center Locations
IPP In-Person Payment Processing Agreement
024
CASH PAYMENT CENTER LOCATIONS:
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P indicates proposed location. Azusa Covina
025
IPP IN-PERSON PAYMENT PROCESSING AGREEMENT
IPP CLIENT AGREEMENT dated March 23,2010,(the"Agreement")between IPP of America,
Inc.,a New Jersey corporation,with an address at 330 Passaic Avenue,Fairfield NJ 07004
("IPP"),and City of Azusa Light&Water with an address at 729 N.Azusa Ave.,Azusa,CA
917902("CLIENT").
WITNESSETH:
WHEREAS,IPP is a bill payment facilitator whose primary business is providing bill payment facilities
on behalf of its CLIENT'S through its authorized payment centers for use by CLIENT'S customers.
Client has customers("Customers")who are required to make payments to Client on a periodic basis
("Bill Payments").Client requires an efficient system to allow Customers to make Bill Payments in
person at convenient and easily accessible Payment Outlets. IPP has a network of Payment Outlets
with Payment Terminals(the"Agent Network")to process Customer Payment Data and to report and
remit Customer Payments to Client. This Agreement provides the terms and conditions of Client's and
IPP'obligations in performing its duties hereunder.
WHEREAS,IPP wishes to enter into the business association with CLIENT as set forth in this
Agreement and to provide to CLIENT bill payment services for use by CLIENT'S customers.
NOW,THEREFORE,in consideration of the foregoing,the mutual covenants and agreements
contained herein,and for other good and valuable consideration the receipt and sufficiency of
which are hereby acknowledged,the parties hereto hereby agree as follows:
1. Appointment as Authorized Vendor. CLIENT hereby appoints IPP to serve as an authorized
vendor for the purpose of accepting cash from the CLIENT's customers on the terms and subject to the
conditions set forth in this Agreement.
2. IPP Obligations.
a) IPP shall provide retail locations for collection and processing of CLIENT's customer payments,
including all POS processing equipment and complete management.
b) IPP Agent locations shall accept payments from CLIENT's customers in the form of cash,or
money orders in order to credit funds to customer's accounts in connection with CLIENT
services and transmit such payment to CLIENT in accordance with required remittance
processing and acceptance.
c) Any addition to IPP agent locations in Schedule 2 must be with the consent of CLIENT.
CLIENT must be notified 30 days in advance of any location closing or as soon as IPP is aware
of a closing.
d) The IPP Agent shall provide each customer with a receipt via the POS processing equipment.
e) IPP shall provide training for each Agent,furnish the Agent with appropriate training literature,
and support the Agent's during the term of the Agreement by communicating changes in the
IPP system(if applicable)to the Agent's,maintaining a toll-free telephone number that Agent's
may call for assistance.
f) IPP shall transmit customer payment data to CLIENT based upon CLIENT's specifications(and
at a mutually agreed upon timeframe)at least once each business day,unless stated otherwise
by CLIENT (real-time, batch, etc). Transmission shall occur regardless of whether or not
payments were taken by an Agent location.
g) IPP shall notify CLIENT by way of daily remittance to report the number of items and the dollar
amount transmitted.
h) Within 2 business days from the date that an Agent receives a payment transaction from a
CLIENT's customer, IPP shall initiate an Automatic Clearing House (ACH) electronic
026
transaction and shall credit the bank account designated by CLIENT in an amount totaling the
sum of all payments equaling transmittal information. IPP assumes the risk of loss to the
CLIENT for CLIENT's funds received by IPP or its Agent's from CLIENT's customers, until
monies are received in CLIENT's bank. Funds received by IPP and its payment centers on
behalf of CLIENT from CLIENT's customers are deemed to be held by IPP for and on behalf of
CLIENT. In no case shall IPP's liability be more than the amount of the order cost due CLIENT.
In no case will either IPP or CLIENT seek recourse from CLIENT's customers for monies paid
by such customers to IPP or its payment centers which have not been received by CLIENT.
i) IPP shall take steps to ensure that the processing of each transaction is in compliance with all
applicable laws prohibiting money laundering or the transfer of funds to specified persons or
entities, including the Bank Secrecy Act, USA Patriot Act, as well as the rules and regulations
promulgated by the Office of Foreign Assets Control. IPP shall immediately notify CLIENT if it
determines that the processing of any transaction would likely violate any of the Anti-Money
Laundering Laws.
I) Customer payment disputes, research and adjustments:
1. IPP shall adjust any discrepancies pertaining to the payment data file transmission process
via an ACH debit or credit within three (3) business days of being made aware of the error.
2. IPP will research and attempt to resolve all disputed customer research items within three
(3) business day.
3. Client Obligations.
a) CLIENT agrees that cash, and money order payments will be the only form of payments
accepted at an Agent.
b) CLIENT shall provide information regarding customer bill statements (check-digit algorithm
scheme, sample statements, banking information, etc.)for the purpose of electronically posting
customer payment data to CLIENT.
c) CLIENT shall provide a contact person to interface regularly(or when needed)with IPP.
d) CLIENT shall provide bank account information(name and account number)in order to receive
funds related to customer payments.
e) CLIENT agrees to promote IPP Agent's to it's customers at no cost to IPP, including bill inserts,
Azusa Light & Water web site, bill messages, office lobby posters.
f) CLIENT shall provide a deposit slip with the ABA number and account number to which IPP
shall submit funds under this Agreement.
4. Term and Termination.
4.1. The term of this Agreement will commence on the date hereof,will continue for a period
of three (3) years, and will renew automatically for additional periods of two (2)years,
unless otherwise terminated pursuant to the terms of this Agreement.
4.2. Termination. Either party may terminate this Agreement upon giving ninety(90) days
written notice to the other party.
4.3. Notwithstanding Section 4.2 above, this Agreement may be terminated by either party
on thirty(30)days prior written notice to the other party upon the occurrence of a
material breach by the other party of any covenant, duty or undertaking herein, which
material breach continues without cure for a period of fifteen (15) days after written
notice of such breach is received by the breaching party from the non-breaching party.
5. Fees and Compensation to IPP (outlined within the Economic Summary portion of agreement).
6. Confidential Information/Non-Circumvention.
6.1 Each party agrees that it shall (i)take reasonable steps to protect the Confidential
Information (as defined below)of the other party, using methods at least substantially equivalent to the
027
steps it takes to protect its own proprietary information, but not less than a reasonable standard, during
the Term of the Agreement and for a period of one (1)year following expiration and termination of this
Agreement and (ii)prevent the duplication or disclosure of Confidential Information, other than by or to
its employees who must have access to the Confidential Information to perform such party's
obligations hereunder, provided that each party shall make such employees aware of the restrictions
of this section.
6.2 For purposes of this Agreement: "Confidential Information" means all confidential and
proprietary information of a party, including, without limitation, information relating to: the business;
trade secret information; client, investor, customer and supplier lists, and contracts or arrangements;
financial information (including financial statements, budgets and projections); market research and
development procedures, processes, techniques, plans and results (including inconclusive results); all
information which may be included by the party in any patent or copyright application or amendment
thereof or defense or litigation with respect thereto; marketing, licensing and distribution strategies,
plans or projections; investment or acquisition opportunities, plans or strategies; products and asset
composition; pricing information or policies; royalty or licensing arrangements; computer software,
passwords, programs or data; and all other business related information which has not been publicly
disclosed by the party or its affiliates, whether such information is in written, graphic, recorded,
electronic, photographic, data or any machine readable form or is orally conveyed to or developed by
the other party;provided that Confidential Information shall not include information which: (i)at the time
of disclosure is generally known in the business and industry in which the party is engaged; or(ii) after
disclosure is published or otherwise becomes generally known in such business or industry through no
fault of the other party. As a result of receiving confidential information and otherwise becoming familiar
with each others business affairs"IPP"or"CLIENT" may obtain knowledge of each other's employees,
associates, partners, contacts, sources, contractors, investors, potential investors, CLIENT's, other
service providers, customers and prospects (collectively the "Proprietary Relationships")and the
others plan's and opportunities (collectively the " Proprietary Opportunities"). Therefore, neither"IPP"
or"CLIENT" shall use its knowledge of any Proprietary Relationship or Proprietary Opportunity of the
other(a)for any other purpose other than to operate under this agreement, (b)for their own advantage
or economic benefit outside the scope of this agreement or(c) in any manner that would harm or
otherwise be a detriment to the other.
6.3 User Information. CLIENT agrees that as between CLIENT and IPP, all information
received, directly or indirectly, voluntarily or extracted through transactional activity from Payment
Centers and all information created or derived there from and containing such information (either
created or derived by CLIENT or IPP) is the property of both IPP and the CLIENT.
6.4 CLIENT also agrees from the date of this Agreement, and during the term of this
Agreement, not to enter any Agreement with any retailer which is currently a Payment Center of IPP.
CLIENT will not introduce or attempt to induce any of IPP's retailers, Payment Centers or employees to
cease their relationship with IPP.
6.5 CLIENT shall not assist, directly or indirectly, any other party in any manner using or
attempting to use the Payment Center list, and will not at any time disclose all or any portion of it to any
other person or entity.
6.6 CLIENT may make disclosure to any governmental agency, following a court order or to
a legal proceeding and to counsel of CLIENT.
7. Representations and Warranties of CLIENT.
7.1 CLIENT hereby represents and warrants that(i) CLIENT has the power and authority to
enter into this Agreement and to perform its obligations hereunder and, upon execution and delivery
hereof, this Agreement shall constitute the valid and binding obligations of CLIENT enforceable in
028
accordance with its terms; (ii) to the extent that CLIENT is required to obtain rights, licenses,
permissions, clearances, approvals and/or attribution information necessary for IPP to resell its
product, CLIENT will do so accurately and completely.
8. Representations and Warranties of IPP.
8.1 IPP hereby represents and warrants that IPP has the power and authority to enter into
this Agreement and to perform its obligations hereunder and, upon execution and delivery hereof, this
Agreement shall constitute the valid and binding obligations of IPP enforceable in accordance with its
terms.
9. Indemnification.
9.1 Each party hereto shall indemnify, defend, and hold harmless the other party, its
directors, officers, employees and agents with respect to any claim, demand, cause of action, debt or
liability, including reasonable attorneys' fees, to the extent that it is based upon a claim that, if true,
would constitute a breach of any of the indemnifying parties' representations, warranties, or
agreements hereunder.
9,2 In claiming any indemnification hereunder, the party claiming indemnification (the
"Claimant") shall provide the other party with written notice of any claim which the Claimant believes
falls within the scope of the foregoing sections. The Claimant may, at its own expense, assist in the
defense if it so chooses, provided that the other party shall control such defense and all negotiations
relative to the settlement of any such claim and provided further that any settlement intended to bind
the Claimant shall not be final without the Claimant's written consent.
10. Miscellaneous Provisions. 10.1 Inspection of Records. Each party shall have a
right, upon reasonable written demand, to examine the books and records of the other party with
respect to products and services provided pursuant to this Agreement.
10.2 Retention of Records. IPP shall maintain the following records in hard copy or
electronic image for the periods set forth below:
Item On-Site Total Time Maintained
ACH transmissions 12 months 7 years
Agent deposit tickets as received destroyed after bank statement
reconciliation
Agent transmissions 12 months 7 years
Client adjustment 12 months 7 years
correspondence
Client contract file life of contract life of contract plus 7 years
Client correspondence as needed 2 years
Debit/credit advice 2 months destroyed after 2 months
Returned Items/Return Item 12 months 7 years
Letters
10.3 Insurance. IPP shall procure, pay premiums, and at all times during the term of this
Agreement maintain insurance coverage for: (i) commercial general liability with minimum coverage of
not less than one million dollars ($1,000,000) per occurrence and two million dollars($2,000,000)in the
aggregate; (ii)employee theft with minimum coverage of not less than one million dollars ($1,000,000),
and (iii) automobile liability insurance with minimum coverage of not less than one million dollars
($1,000,000) per accident covering vehicles owned, leased or operated by IPP and its employees. IPP
shall also maintain during the term of this Agreement all insurance policies required by law including
Workers' Compensation insurance and coverage for Employer's Liability.
029
IPP shall maintain all of the foregoing insurance policies to protect the CLIENT from all claims, losses
, demands, and causes of action arising by reason of any action undertaken or omitted by IPP or its e
mployees. All such policies of insurance shall be primary and non-contributory. The policies may not
be materially changed, reduced or canceled unless thirty(30) days prior written notice thereof is furni
shed to CLIENT. Within fifteen (15) days of execution of this Agreement, IPP shall furnish CLIENT wi
th certificates of insurance certifying that the appropriate insurance policies are in place.
10.4 Notices. All notices, requests, claims, demands and other communications given or
made pursuant hereto shall be in writing (and shall be deemed to have been duly given or made upon
receipt) by delivering in person, by cable, by telecopy(with confirmation, a copy of such telecopy
material delivered in person or by registered or certified mail, postage prepaid, return receipt
requested) or by registered or certified mail (postage prepaid, return receipt requested)to the
respective parties at the address as set forth in the first paragraph of this Agreement(or at such other
address for a party as shall be specified in a notice given in accordance with this Section).
10.5 Entire Agreement; Amendment. This Agreement and the exhibits hereto are the
entire agreement among the parties hereto pertaining to the subject matter hereof. This Agreement
shall not be amended except by a written document signed by all of the parties hereto.
10.6 Specific Performance. The parties recognize and acknowledge that in the event of a
breach or default by either party hereto of the terms and conditions of this Agreement, the damages to
the remaining party to this Agreement, may be impossible to ascertain and such party shall not have
an adequate remedy at law. In the event of any such breach or default in the performance of the terms
and provisions of this Agreement, any aggrieved party or parties shall be entitled to institute and
prosecute the proceedings in any court of competent jurisdiction, either at law or in equity, and without
the necessity to post a bond or prove special damages, to enforce the specific performance of the
terms and conditions of this Agreement, to enjoin further violations of the provisions of this Agreement,
and/or to obtain damages. Such remedies shall however be cumulative and nonexclusive and shall be
in addition to any other remedies, which any party may have under this Agreement or at law.
10.7 No Waiver. No waiver of any breach of any terms hereof shall be effective unless made
in writing signed by the party against whom enforcement of the waiver is sought, and no such waiver
shall be construed as a waiver of any subsequent breach of that term or of any other term of the same
or different nature.
10.8 Binding Agreement. This Agreement shall be binding upon the parties hereto and their
respective successors.
10.9 Relationship of Parties. The parties are and shall be independent contractors to one
another, and nothing herein shall be deemed to cause this Agreement to create an agency, partnership
or joint venture between the parties. Notwithstanding the foregoing, to the extent required by
applicable law, CLIENT's appointment of IPP as an authorized bill payment representative will
establish an agency relationship, limited strictly to the rights, duties and obligations as set forth herein.
Further, nothing in this Agreement shall be interpreted or construed as creating or establishing the
relationship of the employer and employee between CLIENT and IPP. IPP shall not at any time
represent its relationship with CLIENT's as anything other than an independent contractor. IPP shall
not at be deemed an employee of CLIENT and shall not be entitled to participate in or receive any
benefit or right as an employee under any CLIENT plan, including without limitation, CLIENT employee
insurance, pension, savings, or profit sharing plans. As an independent contractor, IPP shall be
responsible for paying and reporting all federal, state income tax, Social Security tax, and
unemployment insurance applicable to IPP. IPP shall not be entitled to any health or disability
insurance, retirement benefits, or any other welfare or pension benefits (if any)to which employees of
CLIENT, its parent and affiliates may be entitled.
030
11. Use of Name and Logo. IPP may use the names and logos of Biller in reasonable and
discrete advertising for its Agents (e.g., window stickers, service desk display cards) and for other
reasonable business purposes after consultation with and prior written approval by Biller.
12. Severability. If any provision of this Agreement shall be held by any court of competent
jurisdiction to be illegal, void or unenforceable, such provision shall be modified or narrowed so as to
avoid such defect, but the illegality or unenforceability of such provision shall not impair the
enforceability of any other provision of this Agreement.
13. Applicable Law. This Agreement shall be governed, construed and enforced in accordance
with the laws of the State of California, without regard to its conflicts of law principles.
14. References. The headings in this Agreement are for convenience of reference only and not for
any other purpose.
15. No Third Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto
and nothing herein, express or implied, is intended to or shall confer upon any other person or entity,
any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement.
16. Counterparts. This Agreement may be executed in counterpart copies and each of which
shall be an original but all of which shall constitute a single instrument.
IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement as of the date
first written above
IPP of America, Inc. CLIENT
By: By:
Name: John Zaleskie Name: Joseph R. Rocha
Title: CFO Title: Mayor
031
EXHIBIT I
Economic Summary
Amount Description Payment
Description Mode
Set-up Fee No Charge Includes integration with Paymentus
Transaction & No Charge Customers are solely responsible for
Agent Commission the payment of the Transaction Fee
Fee ($2.50).
Transfer No charge 100% by the second banking ACH transfer
of Customer business day credit
Payments from
IPP to Client
Adjustments Varies Include but are not limited to: ACH transfer
Customer Payments entered twice,
incorrect amount, incorrect utility,
and/or incorrect payment type.
Term of 3 years + 2 Beginning Effective Date
Agreement two-year renewals
Real-time or No Charge Customer payment information is
Memo File Posting available to CLIENT in real-time or
memo file posting if so desired.
15 032
EXHIBIT II
LIST OF CURRENT IPP PAYMENT CENTERS
Azusa Wireless, 630 East Foothill Boulevard, Azusa
Prime Services, 536 West Arrow Hwy., Covina
Famsa/Dollar Express, 1421 Azusa Avenue, Covina
H&J Enterprise, 329 E. Gladstone Street, Azusa
Ace Cash Express, 891 Citrus Avenue, Azusa
Azusa Exxon Gas, 478 West Arrow Hwy., Covina
16
033
p abo
ALuSA
. CHI b 0•'4f11
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 22, 2010
SUBJECT: UPDATE ON LODI ENERGY CENTER (LEC)
The Project received some long-awaited good news when on March 10, 2010 the California
Energy Commission issued its Presiding Member Proposed Decision (PMPD) on the project.
The PMPD recommended formal approval by the full CEC. A final public hearing was set for
April 21 when the CEC is expected to issue a construction license for the project.
Assuming a favorable action by the CEC on April 21 , the next step involves Participant approval
of the CEQA work performed by the CEC and of the two project agreements: a Power Sales
Agreement and a Project Management & Operating Agreement. Presently, Staff expects to
request Utility Board approval of these items at its April 26, 2010 meeting.
Black & Veatch is finalizing its review of Azusa's participation in the project. Preliminary
conversations with the principal investigator indicate that the project will compare favorably
with (i) other power supply alternatives available to Azusa and (ii) the bulk power market. You
may recall that the primary impetus for Azusa's involvement in LEC is to serve as a partial
replacement for San Juan Unit 3 power that may eventually be phased out of use through
divestiture, regulations or by policy.
A difficult issue facing the project is the need to give the major equipment supplier, Siemens, a
Final Notice to Proceed by March 30 or face possible additional costs and/or project delays.
Assuming receipt of CEC approvals on April 21 and the need to allow time for participant
execution of project documents, a delay of 2 to 3 months in the issuance of the notice to proceed
is likely. LEC management is assessing the impact of this delay.
For information, one of the key changes in the project since my last report is the reduction in
participation by Modesto Irrigation District from 60 MW to 30 MW. MID stated that bond
covenants regarding debt coverage required them to either increase rates or to reduce
participation. At this point, the California Department of Water Resources and Santa Clara have
increased their participation to keep the project fully subscribed.
Prepared by: G. Morrow, Director of Utilities
034
• a a 4
AZUSA
LIGHT 8 WATER
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE USA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES
DATE: MARCH 22, 2010
SUBJECT: QUARTERLY FUEL COST ADJUSTMENT FOR SAN JUAN RESOURCE
On July 26, 2004, the Utility Board approved a fuel cost adjustment mechanism for San Juan
power plant. This mechanism is intended to credit customers with cost savings that are realized
when our power plant operates reliably and replacement power costs are avoided, and
conversely, allow the Utility to increase revenues to recover a portion of our replacement power
costs when the San Juan resource experiences outages.
This report encompasses replacement power costs incurred for the San Juan resource during the
period of December 15, 2009 through March 15, 2010. For reasons stated below, staff
recommends that NO Fuel Cost Adjustment be assessed on customer electric billings for the
period of April 1, 2010 through June 30, 2010.
The availability of the San Juan unit #3 during the period of December 15, 2009 through March
15, 2010 was 76%, lower than the budgeted availability of 85%. The average cost of replacement
power was $42.75/MWh as compared to the budgeted cost of$40/MWh, resulting in a net cost
of $283,277 for Fuel Cost Adjustment for the quarter, and when combined with the carry over
from the previous quarter of$421,611 it resulted in a total FCA credit of$138,333.
Given the anticipated San Juan replacement power costs in the second quarter of 2010 due to a
planned San Juan unit 3 maintenance outage staff recommends the FCA credits be carried over
to offset the foreseeable large San Juan FCA charges next month.
Prepared by: George F. Morrow, Director of Utilities
Richard Tones, Power Resources Coordinator
Tim Vuong, Power Resources Scheduler
Attachment
Si FCA
Q2_10_20100315.xls
035
San Juan Fuel Cost Adjustment Calculation for Q2 2010
Dec 15-Jan February March'
Actual SJ Output 27,878 12,260 8,940
Actual SJ Replac Energy Cost $282,055 $317,946 $72,077 $42.75
Maximum Output 34,560 20,160 10,080
Unavailable SJ Output 6,682 7,900 1,140 24.26%
%Outage Rate 19.33% 39.19% 11.31%
Base SJ Output @ 85% 29,376 17,136 8,568
Unavailable SJ Output 5,184 3,024 1,512
%Outage Rate 15.00% 15.00% 15.00%
Base SJ Replac Energy Cost @$40/MWh $207,360 $120,960 $60,480
Actual-Base SJ Replac Energy Cost $74,695 $196,986 $11,597
San Juan Insurance Premium Recovery $0 $0 $0
San Juan Insurance Payout $0 $0 $0
Cumulative Quarterly Difference(CQD) $283,277
Q1 2010 Carry-Over -$421,611
If l(CQD)I<$100,000,then adjustment=0
If KCQD)I>$750,000,then adjustment=+-$750,000
or else adjustment=CQD -$138,333
April May June
Forecast Retail Sales(MWh) 20,179 22,133 21,187
SJ FCA for Q2 2010(cents/KWh) -0.22
(*)Through March 15,2010
C )
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