HomeMy WebLinkAboutAgenda Packet - June 15, 2009 - CCi■
PUBLIC HEARING
TO: HONORABLE MAYOR AND MEMBERS OF THE AZUSA CITY COUNCIL
VIA: FRANCIS M. DELACH, CITY MANAGERL*
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 15, 2009
SUBJECT: WATER RATE ADJUSTMENTS FOR JULY 1, 2009 AND JULY 1, 2010
RECOMMENDATION
It is recommended that the City Council:
A. Open public hearing to consider comments on proposed water rate adjustments; and
B. Close public hearing and adopt attached resolution approving two rate increases, one
effective July 1, 2009, to increase revenues by 18% over last year's revenues; and second
effective July 1, 2010, to increase revenues by 15.6%.
EXECUTIVE SUMMARY
As a result of increased debt service obligations, a 17.8% reduction in consumption due to water
conservation, and deletion of multi -dwelling meter charges, a budget shortfall is projected for FY
2009-2010 in amount of at least $6.2 million. The approved 6% increase in water rates that is
scheduled to go into effect July 1, 2009, is not sufficient to meet our forecasted total revenue
requirement of $18.65 million or $14.7 million retail revenue requirement. In working with a
consultant, HDR Engineering, approved by the Utility Board back in January 2009, staff is
recommending that next year's revenue shortfall be filled with a combination of reserve funds
and revenues from a rate adjustment. A second year rate adjustment is recommended for
approval at the same time to demonstrate the City's commitment to meet debt coverage
obligations by FY 2010-2011. Even with the significant rate adjustments proposed herein,
Azusa customers will enjoy one of the lowest water rates of surrounding cities and a high quality
supply of water provided using the latest technologies. A notice of proposed rate changes and
this Public Hearing was mailed to the public on April 28, 2009.
BACKGROUND
2006 Revenue Bonds
Prior to the current economic downturn, and in December 2006, Azusa Light & Water issued
$54.85 million in debt in the form of revenue bonds to pay for various required water utility
infrastructure. A significant portion of the bond funds were used to construct a new water
Page 1
treatment plant which was made necessary due to new water quality standards; funds were also
used to install associated transmission lines to connect the treatment plant with the water
distribution system and to provide funding for reservoirs and pump stations to support the
Rosedale Development. As part of the 2006 Revenue Bond financing, debt service payments
were structured in such a way to increase over time so that water rates could be increased
gradually to cover the added cost of debt repayment over a period of 32 years.
Bond financing agreements entered into by the City require that Net Income of the utility be
equal to 1.25 times debt service payments. Such requirement guarantees the City's ability to pay
bondholders out of annual operating revenues from year to year. This is referred to as the "debt
coverage ratio" or requirement. For the past two fiscal years the City has met this requirement
for both the 2006 revenue bonds and .the 2003 certificates of participation or COPS that were
issued to refinance debt associated with the purchase of the Azusa Valley Water Company in
1993.
Financial Obstacles to Meeting Debt Coverage Ratio
During 2006, when the added debt was contemplated, it was believed that two rate adjustments
of 6% over 3 years, plus added growing revenue from the increased housing at Rosedale, would
help the Utility come close to meeting the debt coverage requirements of the bond documents for
FY 2009-10. However, a number of events or circumstances emerged since 2006, which have
had a negative effect on the water utility's operating revenues. These include the following:
A. The economic downturn stopped housing development in Rosedale and did not result in
the expected number of additional customers. Also, residential customer counts declined
outside the city, most likely due to higher foreclosure rates. These impacts are about
$400,000 to $500,000 per year. The economic downturn has also affected interest
income on the water utility reserve funds, which is used to support capital improvements.
The combined effect of these impacts makes up about 7.5% of our retail revenue
requirement.
B. The most severe drought in the City's history occurred and was compounded by the
limitation of export water from the Sacramento Delta. These events forced the water
utility to aggressively promote water conservation, which, in turn, caused the water utility
to lose revenue at a time when additional revenue was needed. According to HDR, water
consumption was reduced by 17.8% in 2008 compared to 2006. This impact is about
$2.7 million annually, or about 18.4% of our retail revenue requirement. This estimate
does not include the increased cost of water (when such water is available for purchase).
C. Inequities in the rate structure were discovered in the form of a sub -meter charge in 2008,
and these were eliminated beginning July 1, 2008, which reduced water utility revenues
further by about $750,000 per year, or about 5.1 % of our retail revenue requirement.
Operating Budget Shortfall Predicted
Due to the above factors and based on billing amounts to date, staff forecast that revenue from
rates will be about $12.46 million through the end of this fiscal year, and this trend is likely to
continue into the next year or two. This forecast does not include revenue from Replacement
Water Cost Adjustment Factor (RWCAF), Drought Charge, interest income or other
miscellaneous revenues --just income from water services and commodity charges. Considering:
(a) $3 million in annual debt service required in upcoming fiscal year, (b) realistic operating
Page 2
budget expenditure forecast with cuts and postponement of capital outlays, (c) funding a portion
of capital improvement costs out of reserves, and (d) offsetting costs with non -rate revenues, our
net revenue requirement for FY 2009-10 is estimated to be about $18.65 million from all sources
of revenue, or $14.7 million from retail revenues. This results in a funding gap of $2.24 million
between forecasted rate revenue ($12.46 million) and retail revenue requirement ($14.7 million)
and this gap cannot be made up by the approved 6% rate increase scheduled to go into effect July
1, 2009. This is the basic finding of the attached consultant report.
Considerations in Funding the Gap
The environment in which the water utility is operating is very dynamic, especially regarding
drought conditions, purchased water costs, and the economy. Over this next year, for example, it
appears that the Utility may have to promote additional water conservation. This could further
erode forecasted revenues, including those from proposed increases. Also, outside agencies such
as MWD and Upper District have increased their rates for water. While some of these costs may
be paid using RWCAF revenues, a portion of these costs can still affect our operating expenses
and need for additional rate revenue. For these reasons, in working with the consultant, staff felt
that it was important to not look beyond two years, and that meeting the debt coverage ratio
requirement is of the utmost importance at this time.
Other factors considered in working with the consultant included: (a) current state of the
economy and hardship effect on consumers; (b) last fiscal year end reserve of $25 million; (c)
Azusa Light & Water's water rates compared to surrounding water utilities; and (d) need for
continued water conservation and what such conservation could mean in terms of additional
revenue reductions.
Based on above considerations, staff directed the consultant to formulate rate adjustment to meet
debt coverage ratio in two years, and that revenue increase in first year not be more than 18%.
Staff acknowledge that this will result in operating revenue shortfall during FY 2009-2010,
however, staff propose that a portion of the shortfall be funded with retained earnings given
adequate amount of reserves on hand and low interest income on reserves currently. Since an
18% increase in revenues will not be adequate to meet debt coverage next year, it is proposed
that a second year rate adjustment be approved at the same time that is high enough to
demonstrate City's commitment to meet the debt coverage requirement. HDR estimates that a
second year increase of 15.6% will be sufficient to meet the debt coverage requirement of 1.25 in
FY 2010-2011. Also, staff requested the consultant to develop an emergency rate schedule that
would go into effect should the City declare a Phase III water shortfall which would target an
additional 10% reduction in consumption.
Rate Adjustment Meter Charges and Commodity Charges
In considering above items, HDR formulated the water utility revenue requirements for the next
two fiscal years. Using standard cost of service principles for water rate studies, HDR split the
revenue requirement for FY 2009-2010 of $14.7 million into $6,171,556 to be apportioned
through meter charges, and $8,530,328 to be apportioned through commodity charges.
Page 3
Meter Charges
Proposed meter charge changes are set forth below:
Commodity Charges
While three alternatives were presented in HDR's report for commodity charges, on April 20,
2009, the City Council directed staff to focus on Alternative 3, which increases tier 2 rates
effective July 1, 2009, to meet the commodity revenue requirement. This alternative is less
likely to affect low -consuming water users since it keeps tier 1 rates where they are, and is more
likely to encourage water conservation since this schedule features higher tier 2 rates than the
other alternatives considered.
Below table shows the proposed tier breakpoints and rates effective July 1, 2009:
Current and Alternative 3 Commodity Rates (Frog -1o)
Meter Service Charges ($/month/meter) (FY'09-10)
Current Rate Structure
Service
Current
Scheduled Increases (b)
7/1/2009 Rates
7/1/2010 Rates
_
% Change (d)
Size
Charges (a)
(c)
Change
(d)
(c)
% Change (d)
$12.50
5/8-3/4"
$13.25
6.0%
$14.74
17.9%
$17.03
15.5%
1"
$17.61
$18.67
6.0%
$20.99
19.2%
$24.26
15.5%
1 1/2"
$30.27
$32.09
6.0%
$36.50
20.6%
$42.18
15.6%
2"
$45.53
$48.27
6.0%
$55.18
21.2%
$63.76
15.5%
3"
$93.91
$99.54
6.0%
$114.39
21.8%
$132.18
15.6%
4"
$157.46
$166.91
6.0%
$192.18
22.1%
$222.08
15.6%
6"
$322.80
$342.17
6.0%
$394.56
22.2%
$455.95
15.6%
8"
$462.65
$490.41
6.0%
$565.75
22.3%
$653.78
15.6%
10"
$742.44
$786.98
6.0%
$908.21
22.3%
$1,049.53
15.6%
12"
$1,098.44
$1,164.35
6.0%
$1,343.98
22.4%
$1,553.10
15.6%
Commodity Charges
While three alternatives were presented in HDR's report for commodity charges, on April 20,
2009, the City Council directed staff to focus on Alternative 3, which increases tier 2 rates
effective July 1, 2009, to meet the commodity revenue requirement. This alternative is less
likely to affect low -consuming water users since it keeps tier 1 rates where they are, and is more
likely to encourage water conservation since this schedule features higher tier 2 rates than the
other alternatives considered.
Below table shows the proposed tier breakpoints and rates effective July 1, 2009:
Current and Alternative 3 Commodity Rates (Frog -1o)
Customer
Current Rate Structure
7/1/2009 Rate Structure
Class
Tier 1
Breakpoint
Tier 2
Tier 1
Breakpoint
Tier 2
5/8"-1" Meters
$0.871
18 ccf
$1.378
$0.871
12 ccf
$1.690
1.5"- 2" Meters
$0.871
130 ccf
$1.378
$0.871
100 ccf
$1.690
3"- 4" Meters
$0.871
670 ccf
$1.378
$0.871
600 ccf
$1.690
6" - 10" Meters
$0.871
13,000 ccf
$1.378
$0.871
10,000 ccf
$1.690
Golf Course (c)
$1.070
--
--
$1.223
--
--
Page 4
Below table shows the proposed tier breakpoints and commodity rates effective July 1, 2010:
Current and Alternative 3 Commodity Rates (Fv'09-10)
Customer
7/1/2009 Rate Structure
7/1/2010 Rate Structure
Class
Tier 1
Breakpoint
Tier 2
Tier 1
Breakpoint
Tier 2
5/8"-1" Meters
$0.871
12 ccf
$1.690
$1.007
12 ccf
$1.953
1.5"- 2" Meters
$0.871
100 ccf
$1.690
$1.007
100 ccf
$1.953
3"- 4" Meters
$0.871
600 ccf
$1.690
$1.007
600 ccf
$1.953
6" - 10" Meters
$0.871
10,000 ccf
$1.690
$1.007
10,000 ccf
$1.953
Golf Course (c)
$1.223
--
--
$1.413
--
--
In addition, staff are recommending the City Council approve and adopt an Emergency
Rate Schedule that features a third tier rate that would go into effect if the City were to
declare a Phase III water shortage.
The purpose of this Emergency Rate Schedule is to meet our revenue requirement during a
period when mandatory water conservation measures are put into effect which target a 10%
reduction in consumption. Below is a proposed Emergency Rate Schedule:
Emergency Rate Structure - Rates & Tier Breakpoints (FY109-10)
Customer
Class
Tier 1
Breakpoint
Tier 2
Breakpoint
Tier 3
5/8"-1" Meters
$0.87
12 ccf
$1.842
36 ccf
$2.623
1.5"- 2" Meters
$0.87
100 ccf
$1.842
200 ccf
$2.623
3"- 4" Meters
$0.87
600 ccf
$1.842
1,200 ccf
$2.623
6" - 10" Meters
$0.87
10,000 ccf
$1.842
20,000 ccf
$2.623
Emergency Rate
Structure
- Rates & Tier Breakpoints
(FY'10-11)
Customer
Class
Tier 1
Breakpoint
Tier 2
Breakpoint
Tier 3
5/8"-1" Meters
$1.007
12 ccf
$2.129
36 ccf
$3.031
1.5% 2" Meters
$1.007
100 ccf
$2.129
200 ccf
$3.031
3"- 4" Meters
$1.007
600 ccf
$2.129
1,200 ccf
$3.031
6" - 10" Meters
$1.007
10,000 ccf
$1.842
20,000 ccf
$3.031
The above 3 tier rate structure is intended to be "revenue neutral" since it only adds revenue lost
as a result of conservation. Such structure is not currently in place and so the Water Utility has
no means of making up for lost revenue as a result of conservation.
Page 5
Water Rate Survey
Utilities Department staff recently conducted a water rate survey of surrounding water utilities or
cities and found that rates vary widely. Rate information was gathered on our most common
service level, a 3/4" meter, and consumption was assumed to be 17 hundred cubic feet (cco per
month. Below shows the comparison of current rates and proposed rate that would result from
adoption of Alternative 3 rates. Total costs below are shown as Bi -Monthly costs.
2009 Water Rate Survey - Bi -Monthly Rates
For 3/4" meter consuming 17 hundred cubic feet per month of water
Claremont - GS
San Dimas - GS
Rowland Wtr Dist.
La Verne
Pomona
Alhambra
Glendora
2010 AZU SA RATE
Suburban (W. Covina)
Suburban (Covina)
Covina
2009 AZU SA RATE
Monrovia
Cal Am (Duarte)
Monterey Park
Azusa
FISCAL IMPACT
1 $110.23
1 $110.23
$108.70
$107.02
$0 $20 $40 $60 $80 $100 $120
The 18% increase in revenues will amount to about $2.242 million during FY 2009-10. This
amount will not be adequate to meet debt coverage obligations in FY 2009-2010, and so an
additional increase of 15.6% is proposed for FY 2010-11, which will generate about $2.293
million in additional revenue. While this level of revenue may be adequate to meet our debt
coverage requirements in FY 2010-11 as estimated by the consultant, it is not expected to
provide adequate revenue to meet our long-term capital improvement needs, and so our reserves
would decline, by approximately $4 million next fiscal year. However, given the dynamic
environment of the economy and water supply conditions, staff is recommending that the
forecast model be updated this time next year to revisit the adequacy of the rates to meet our debt
service needs, capital improvement requirements and reserve requirements.
Prepared by:
Joseph F. Hsu, Director of Utilities
Cary Kalscheuer, Assistant to the Director of Utilities
Page 6
Exhibits:
1. Resolution approving proposed rate adjustments
2. Exhibit A — Water Rate Schedule
3. Consultant Report from HDR Engineering
4. Powerpoint Presentation
Page 7
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AZUSA, TO ADOPT NEW WATER RATES
EFFECTIVE JULY 1, 2009, AND JULY 1, 2010.
WHEREAS, the City of Azusa issued revenue bonds in 2006 to construct a new water
filtration plant to meet more stringent water quality regulations; and
WHEREAS, debt service on the 2006 revenue bonds will be about $3 million in Fiscal
Year 2009-2010; and
WHEREAS, bond agreements entered into by the City of Azusa require the Water Utility
net income to be equal to 1.25 times the debt service payments; and
WHEREAS, the recent economic downturn has stopped housing growth in Rosedale,
resulted in higher foreclosure rates, and reduced the amount of interest income the Water Utility
typically receives on its reserve funds; and
WHEREAS, the drought in California occurred after the 2006 revenue bonds were
issued, and forced the Water Utility to aggressively promote water conservation which reduced
revenues from rates; and
WHEREAS, in 2008, the Water Utility eliminated some charges included in its rate
structure to create a more equitable water rate schedule, but which reduced revenues by about
$750,000 per year; and
WHEREAS, a recent cost of service study performed by HDR Engineering concluded
that without rate increases, the Water Utility would not be able to fulfill its debt coverage
obligations on the 2006 revenue bonds; and
WHEREAS, the proposed water rates have been prepared by a third party consultant and
reviewed by City staff, and are believed to allocate costs equitably to all customers based on the
cost to serve the various water utility customer classes; and
WHEREAS, the proposed rate adjustments are deemed necessary to meet the future
revenue requirements of the water utility with respect to forecasted operating, maintenance and
capital costs, debt coverage ratio requirements, reserve funds, and to make debt service payments
on the 2006 Revenue Bonds.
WHEREAS, public notice has been provided to all customers of record in the water
utility service territory 45 days in advance of this June 15, 2009, public hearing, pursuant to and
in compliance with Proposition 218; and
WHEREAS, a majority protest by property owners of proposed water rate adjustments
has not been filed with the City of Azusa prior to the close of this public hearing on June 15,
2009; and
WHEREAS, the City Council has conducted a Public Hearing and considered all
comments and protests from interested persons;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, DOES
FIND AND DECLARE THAT:
SECTION 1: Adoption of Water Rate Schedule. That the water rate schedule attached
hereto and incorporated herein as Exhibit A is hereby adopted.
SECTION 2: Effective Date of Rates. That the new water rates shall be effective for
all utility bills mailed to customers on and after the effective dates set
forth in Exhibit A.
SECTION 3. Authorization. The Mayor shall sign and the City Clerk shall certify the
passage and adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 15th day of June, 2009.
ATTEST:
Vera Mendoza, City Clerk
APPROVED AS TO FORM:
C
Best Best & Krieger LLP
City Attorney
Joe Rocha, Mayor
I HEREBY CERTIFY that the foregoing Resolution No. 09- was duly adopted by
the Azusa Valley Water Company, at a regular meeting thereof, held on the 15th day of June, 2009
by the following vote of the Board.
AYES: CITY COUNCIL MEMBERS:
NOES: CITY COUNCIL MEMBERS:
ABSENT: CITY COUNCIL MEMBERS:
Vera Mendoza, City Clerk
EXHIBIT A
WATER RATE SCHEDULE
The following schedule of rates is fixed and established as the rates to be collected by Azusa
Light & Water for supplying water to its customers within the certificated service territories of
the City of Azusa:
A. METER SERVICE CHARGE:
The basic monthly meter service charge for water supplied to domestic, commercial,
industrial, and municipal customers of Azusa Light & Water shall be as follows:
Effective July 1, 2009 Effective July 1, 2010
Service Size Monthly Charge Monthly Charge
5/8" —3/4 " $14.74 $17.03
1" 20.99 24.26
1.5" 36.50 42.18
2" 55.18 63.76
3" 114.39 132.18
4" 192.18 222.08
6" 394.56 455.95
8" 565.75 653.78
10" 908.21 1,049.53
12" 1,343.98 1,553.10
Minimum Charge: If a customer has no consumption, the minimum charge shall be the
monthly meter service charge.
EFFFECTIVE 7/1/2009 Resolutions - 1
Water Rate Schedule (continued)
B. COMMODITY CHARGE:
The commodity charge is measured in increments of cubic feet.
One cubic foot is 7.48
gallons of water. Each unit of water is billed as 100 cubic feet or 748 gallons. One
hundred cubic feet is commonly referred to as CCF. Each meter size is allotted a
quantity of water considered to be average for that size of service, units in excess of that
allotment represents a heavier use of the facilities of the water system, and therefore are
billed according to the commodity rate schedule.
Effective July 1, 2009
Effective July 1, 2010
Service Size Units Rate (per CCF)
Rate (per CCF)
5/811-3/455— 1" 0-12 ccf $0.871
$1.007
> 12 ccf $1.690
$1.953
1.5" — 2" 0-100 ccf $0.871
$1.007
> 100 ccf $1.690
$1.953
3"- 4" 0-600 ccf $0.871
$1.007
> 600 ccf $1.690
$1.953
6" — 12" 0-10,000 ccf $0.871
$1.007
> 10,000 ccf $1.690
$1.953
Golf Course $1.223
$1.413
EFFFECTIVE 7/l/2009
Resolutions - 2
Water Rate Schedule (continued)
C. EMERGENCY COMMODITY RATE SCHEDULE
From time to time the water utility may be required to encourage its customers to conserve
water. Conservation activities can significantly reduce the water utility's revenue, and in order
to meet the water utility's revenue requirements an emergency commodity rate schedule shall be
used. If the water utility declares a Phase III water shortage in compliance with Rule 21, the
following Emergency Commodity Rate Schedule shall be effective and shall continue in effect
until the Phase III water shortage has ended:
Service Size
5/811-3/493 - 1 �)
1.555
- 277
Y5- 4"
Units
0-12 ccf
13-36 ccf
>36 ccf
0-100 ccf
101-200 ccf
>200 ccf
0-600 ccf
601-1,200 ccf
>1,200 ccf
619— 12" 0-10,000 ccf
10,001-20,000 ccf
>20,000 ccf
Golf Course
EFFFECTIVE 7/1/2009
Effective July 1, 2009
Rate (per CCD
$0.871
$1.842
$2.623
$0.871
$1.842
$2.623
$0.871
$1.842
$2.623
$0.871
$1.842
$2.623
$1.359
Effective July 1, 2010
Rate (per CCF)
$1.007
$2.129
$3.031
$1.007
$2.129
$3.031
$1.007
$2.129
$3.031
$1.007
$2.129
$3.031
$1.571
Resolutions - 3
Water Rate Schedule (continued)
D. RESIDENTIAL SERVICE WITH FIRE SPRINKLER SYSTEM:
The following three rate components shall be applied to residential properties that are
required to have fire sprinkler systems, where such properties: (1) have lot sizes less than
one-quarter of an acre (10,890 square feet); and (2) have an actual meter service that is
larger than I".
Effective July 1, 2009 Effective July 1, 2010
Monthly Charge Monthly Charge
1. Meter Charge (same as 1" meter charge) $20.99 $24.26
2. Commodity Charge:
Units (ccf=100 cubic feet) Rate (per CCF) Rate (per CCF)
0-12 ccf $0.871 $1.007
>12 ccf $1.690 $1.953
3. Fire Service Charge:
$10.00 effective July 1, 2009, and $11.56 effective July 1, 2010 per pipe
diameter inch.
Minimum Charge: If customer has no water consumption, the minimum charge shall be the
meter charge plus Fire Service Charge.
EFFFECTIVE 7/1/2009
Resolutions - 4
Water Rate Schedule (continued)
E. FIRE SERVICE CHARGE:
Fire service connections are provided for fire protection only. If a fire service is used for
any purpose other than for fire fighting, a minimum charge of $74.00 shall be assessed
effective July 1, 2009, and $85.00 shall be assessed effective July 1, 2010, in addition to
the commodity charge for the actual amount of water used. If a fire service customer
uses a fire service for other than emergency fire fighting repeatedly, the customer, upon
notice of the water utility manager, may be disconnected from service for violation of the
intended use of a fire service connection.
Customers with dedicated separate fire service meters shall be subject to the following
monthly charges:
Effective July 1, 2009 Effective July 1, 2010
Service Size Monthly Chargee Monthly Charge
1" $10.00 11.56
2" 20.00 23.12
3" 33.00 38.15
4" 50.00 57.80
6" 85.00 98.26
8" 125.00 144.50
10" 170.00 196.52
12" 208.00 240.45
Commodity charges as set forth in Section B shall apply to all consumption of water used
for fire suppression.
EFFFECTIVE 7/1/2009 Resolutions - 5
April 13, 2009
Mr. Joseph Hsu, Director of Utilities
Azusa Light & Water
City of Azusa
729 North Azusa Avenue
Azusa, CA 91702
RE: HDR's Municipal Water Rate Study - Final Report
Dear Mr. Hsu:
The attached report summarizes our evaluation of Azusa Light & Water's (AL&W) water
utility rates and financial plans for the next several years., including:
• Evaluating modifications to the water rate structure to further promote conservation
and provide more revenue stability.
• Developing an emergency rate structure that can be implemented, should the City
encounter a Phase III drought condition.
This report has been prepared using "generally accepted" rate setting techniques. The
AL&W's accounting, budgeting, and billing records were the primary sources for the data
contained within the report. Our results provide the basis for developing and
implementing rates that are cost -based and defensible to your customers.
We have worked closely with you and your staff on this study and greatly appreciate your
assistance and input in developing this report. Thank you for the opportunity to provide
this technical assistance.
Sincerely,
Greg Clumpner
Project Manager
GCC:gc/09052
HDR Engineering, Inc. 12365 Iron Point Road, Suite 300 I Phone (916) 817-4700
Folsom, CA 95630 Fax (916) 817-4747
www.hdrinc.com
Municipal Water Rate Study
i.
Tableof Contents............................................................................................................................................i
Listof Figures................................................................................................................................................. i
Listof Tables................................................................................................................................................... i
Chapter 1 - Introduction and Summary.........................................................................................................1
Chapter2 - Results of the Analysis................................................................................................................. 4
RevenueRequirements.................................................................................................................................4
FinancialPlan................................................................................................................. ..............................5
DebtCoverage Ratios................................................................................................................................... 6
Functionalized Cost Allocation................................................................................................................... 7
Calculation of Meter Service Charges........................................................................................................ 8
Calculationof Commodity Rates................................................................................................................9
Impactson Monthly Water Bills................................................................................................................14
CommodityRate Alternatives...................................................................................................................15
Chapter 3 - Conclusions and Recommendations........................................................................................18
Conclusions..................................................................................................................................................18
Recommendations.......................................................................................................................................18
X1..4 � �` w �"t 'a,;" �" °•u
Figure 1 - Projected Water Requirements and Water Consumption.......................................................... 2
Figure 2 - Monthly Water Bills for 5/8" — 1" Meters by Consumption Level..........................................14
Table 1 - Proposed Cost -of -Service Commodity Rates (FY'09-10 through FY'13-14)...............................2
Table 2 — Current and Proposed Cost -of -Service Meter Service Charges ................................ I................. 3
Table 3 - Water Fund — Summary of Budgeted and Projected Revenue Requirements ..........................5
Table 4 - Five -Year Water Fund. Financial Plan.............................................................................................6
Table 5 — Projected Debt Service Coverage Ratios........................................................................................ 7
Table 6 - Summary of Rate Revenue & Cost Allocations (FY'09-10).......................................................... 8
Table 7 - Calculation of Proposed Cost -of -Service Meter Service Charges ............................................... 9
Table 8 - Consumption and Commodity Charge Revenue Requirements (FY'09-10) ............................. 9
Municipal Water Rate Study
� y
Table 9 - Current and Proposed Cost -of -Service Commodity Rates(FY-09-10).....................................10
Table 10 - Current and Proposed Cost -of -Service Emergency (Phase III Drought) Commodity Rates
(FY-09-10)..........................................................................................................................................................10
Table 11 - Commodity Rates and Rate Revenue - Proposed Rates(FY-09-10)........................................11
Table 12 - Emergency (Phase III Drought) Commodity Rates and Revenue (FY'09-10) .......................12
Table 13 - Alternative Commodity Rates (18% Across -the -Board Increase)...........................................15
Table 14 - Alternative Commodity Rates (Tier 2 Rate Increase)...............................................................16
Table 15 - Alternative Emergency Commodity Rates (Tier 2 & 3 Rate Increases).................................16
Table 16 — Tier Breakpoints for Alternative 2 -Tier & Emergency Rates..................................................17
Table 17 — Proposed 2 -Tier & Emergency Commodity Rates...................................................................17
Municipal Water Rate Study
In April 2007, Azusa Light & Water (AL&W) completed a cost -of -service study of its municipal
water rates and then adopted 6% rate increases for July 1, 2007, and July 1, 2009. However,
AL&W then implemented an aggressive water conservation program and, instead of projected
residential growth of 2% per year, lost more than 100 residential customers due to the economic
downturn. As a result, water consumption between 2006 and 2008 decreased by more than 17%.
Additionally, a meter charge that had previously been imposed on sub -metered accounts was
discontinued, reducing revenue by approximately $750,000.1 The total annual debt service
AL&W pays also more than doubled from $2 million to $4.5 million. This additional debt
service was the result of funding the construction of a new water treatment plant.
To evaluate the cumulative impact of these changes on water rates, AL&W retained HDR
Engineering (HDR) to review and recommend necessary adjustments to the current water rates.
This report summarizes HDR's analysis and documents those results. Specific tasks included:
Evaluating modifications to the water rate structure to further promote conservation and
provide more revenue stability.
Developing an emergency rate structure that can be implemented, should the City encounter a
Phase III drought condition.'
Figure 1 on the next page summarizes the projected revenue requirements and billed water
consumption, and indicates that revenue requirements will continue to increase while billed
water consumption is expected to remain flat in FY'09-10 and thereafter.
As a result of this analysis, HDR recommends a July 1, 2009 increase in the total revenue
collected through commodity rates and monthly meter service charges of 18% instead of the
planned 6% adjustment. 3 This 18% increase will then need to be followed by a 15.6% increase in
July 1, 2010. HDR also recommends that AL&W adopt an emergency Phase III drought rate
structure that adds a third tier but is designed to recover the same revenue as the recommended
two-tier rate structure.
Tables 1 and 2 below summarize the current and proposed cost -of -service (C.O.S.) commodity
and meter service charges. We should note that these increases are not "across-the-board"
Sub -metered accounts are primarily multi -family customers that had been charged a portion of the service charge to each unit; due to
Proposition 218, this practice was discontinued and that charge is now only collected from each account.
2 AL&W is currently in a Phase II drought stage, and assume a Phase III drought condition would require an additional 10% reduction
in billed water consumption. Limited imported water from the Delta will also require AL&W to continue its conservation practices.
3 In preparing the analyses and recommendations presented in this report, HDR has relied on information and assumptions provided
by Azusa Light & Water, their consultants, and others. We have assumed that their analyses and data are accurate and prepared with
the necessary professional and technical competence, and that AL&W has informed us of any errors or misinterpretations of the data
used in this study and report.
;p
M Municipal Water Rate Study
adjustments to current rates. Due to changes in the tier breakpoints and consumption by meter
size, the adjustments to the individual rates for each customer class will vary from this overall.
18% increase. Further details of these rate structures are provided in Chapter 2.
Figure 1 - Projected Water Requirements and Water Consumption
'Table -i - Proposed Cost-orl -Service Commodity laates 0 through FY', 3-14)
Rates ` Breakpoints Breakpoints; FY'09-10 i FY'10-11 • FY'11-12 1 FY'12-13 } FY'13-14
I Tier 1 $0 871 18 ccf 1 12 ccf " $0.982 $1.135 i $1.135 ' $1 135 $1.135
5/8" - 1" Meters ; I - t_.. __.._ --------- __.
Tier $1.378_ _ -- } $1.553 l $1.795 $1.795 $1.795 ! $1.795
1.5"- 2" Meters -- Tier 1 $0.871 130 ccf 120 ccf ' $0.982 $1.135 $1.135 _ -$1.135 $1.135__!
Tier $1.378 $1.553 $1.795 $1.795 $1.795 $1.795
1
_ l.._... _ _ .._.:._._._ ..-__. _5
Tier 1 !2--871-'--t-
0.871 670 ccf 600 ccf $0.982 $1.135 $1.135 $1.135 $1.1_35_!
3,- 4" Meters f-...__._._. _. -_-� �_.... _ _ _ - _
f- - ---1 Tier $1.378 $1.553 $1.795 i $1.795 $1.795 d $1.795
Tier 1 $0.871 ? 13,000 od 10,000 ccf ° $0_.982 $1.13_5 1 $1.135 $1.135 ! $1.135
6'- 10" Meters _ ,.._.._. _ _...._ _ _ -- _
I Tier2 $1.378 �. - $1.553 $1.795 $1.795 $1.795 $1.795
_ .._ _ _
Golf Course - $1.070 223 $1.414 $1.414 i $1.414 $1.414
F4 .j
ia"
x " �
xr-nW
W,
i Tier 1 1 $0.871 l 18 ccf i 12 ccf $1.031 i $1.191 $1.191 $1.191 $1.191
5/8" - 1" Meters i T�ec2 $1 378 -- 36ccf $1.631 $1.885 $1.885 $1.885 $1.885_
Tier 3 -- _ 1 $2.322 $2.684 $2.684.j L84
Tier 1 $0.871 130 ccf 120 ccf ! $1.031$1.191 ! $1.191 _$1.191 - $1.191 ~ j
1.5"-2" Meters Tier2 $1.378 ; - 240 ccf ! $1.63-1 $1.8_85 $1.885 f $1.885 $1._885
$2.32_2$2.684 t $2.684 $2.684 $2.684
Tier 1 $0.871 t 670 ccf 600 ccf $1.031 $1.191 i $1.191 $1.191 f $1.191 i
3"- 4" Meters Tier _ $1.378 1,200ccf , $1.631 $1.885 1 $1.885 $1.885 $1.885
_ .__.ry. Tier 3 �� ^ t - �_ $2.322 $24684 ,_ $2.684 $2.68_ $2.684
Tier 1 $0.8_71_ 13,000 ccf 10,000 ccf l $1.031 _ $1:191_ _$1.191 $1.191 $1_191 i
6"- 10" Meters 3 Tier $1.378 �- 20,000ccf $1.631 $1.885 $1.885 $1.885 $1.885
Tier 3 J - $2.322 $2.6842.684 $2.684.684 j
i Golf Course - $1.070 - - ^$1.359 $1.571 1 $1.571- $1.571 `$1.571 ...
Goff _ -
Increases in Total Rate Revenue ! 18.0%15.6% 10.0 % 0.0% 0.0%
.0.0%
.. .. . _ ... ..
Municipal Water Rate Study
o
ab[e 2 -- :- lrrent and Prti1:ose(1 Cast -of -Service.- Miter SerAce Charg'—,
°3e _ FY'09 l0 } FY'10 it i FYI 1 12 FYI 2-13 FYI 3-14
5/8-3/74 $12.50 $14.74 $17 03 $17.031 $17.03 $17.03
_ _. _..........M.._
1" _ $17.61, $20.99 $24.2 $24.26 $24.26_ $24.26
1 1/2 _
._._ ...._._ ....._..._._....,. $30,27gg-- $36.501 _� .., $42.18 $42.�18 $42.18 '- �_$42.18�
_ 21 $55.18 -_.- $63.76.... _$63.761 _ $63.76 $63.76;
3_._._._ _ 1.. _... $93.91; $114.39h $132.18 .$132.18$132.18 $13218:
4" r $157.46; $192.18 $222.08 $222.08 $222.08 $222.08`'
6" $322.80 394.56 $455.95 $455.95 F $_455_.95 $455.951
8" ' $462.65 $565 75 _
$653 78 $653 78: $653.78 $653 78
10" _ _$742.44 $908.21, $1,049.53+$1,049531$1,049.53. $1,049.5_3s
_
12 $1,098.44 $1,343 98, $1,553 M $1,553 10 $1,553.101$1,55310;
��._.... i _ .... _— .._.._ _ ._..._
Increases in Total Rate Revenu�18 6% ,_ __�0.0%
Municipal Water Rate Study
�rti
hapY..c,, 2 - Re szlfs It -he
k
Table 3 summarizes the results of the projected budget and revenue requirement. The net
revenue requirements identified at the bottom of Table 3 are the total annual amount that needs
to be recovered through water rates and service charges if AL&W were to fully fund revenue
requirements every year. However, these net revenue requirements are adjusted in the financial
plan based on other factors; these adjusted requirements provide the basis for the subsequent
cost -of -service rate analysis.
Municipal Water Rate Study
r.::.i.'_NAVrbSalu6'-'..°&: ..'.`:afsaZ'3w,.�AM3.'7Ee9+},.+'dd:.Yi':aus'-'c::tw`a re�c;.He. •.
Table 3 - WatLr- Fund' Sumrnary of lat.idc<,='ke 1 and Projec-ec,l Revenue
Franchise Fee (2% of Retail Sa/es)(d) 301,5801 301,580 294,038 ' 339,791 339,791 ' 339,791
Subtotal Annual Cash Expenditures $16,914,002 i $17,965,583 $18,354,547 $18,814,735 $19,229,148 $1Xi 9;658,364
�.�tl:''#e' u����1��M k fig r�F,R {.��i (N9 Ek '
i �'� fid',.. ...�� rvl4 Poflfl m, aro ncaia nwr# aX'
'Capital Projects (e) ” $410001000 $3,000,000 $4,000,000 $4,000,000 ; $4,000,0001 $4,000,000
��� aa��i¢i
.h! �ih .. �J .I :.,".. .,G �w +h w 5G+ r
Fees Revenue ! $203,127 a $301,0001 $301,000 $301,000 1 $301,000 $301,000
Other Revenue (g) i 817,234 717,998 718,000 718,0001 718,000 S 718,000
,Interest Income 735,316 600,000 600,000 , 600,000 ! 500,0001 500,000
Transfer Out j (416,298)' (300,000)) (300,000); (300,000) (3001000) (300,000)
!Contracted Sales (Miller Brewery)1,000,000 1,000,000 ` 1,000 000 1,000,000 1,000,000' 1,000,000
Subtotal Non -Rate Revenue
$2,339,380 1 $2,318,998 ( $2,319,000: $2,319,000 $2,219,000 $2,219,000
Net Revenue Requirement (h) i $18,574,fi23 j $18,646,585 $20,035,547 + $20,495,7351 $21,010,148 $21,439,364
a. Expenditures are from or based on various AM sources, including 'Estimate of Unrestricted Cash Reserve, prepared for Standard & Poors,
lot FY End 2008-09,"AzusaRevRec1_2-10.09_cak.xts,"AzusaRevReq-3.30.09 cak.xis,'and'RevisedBudget-3-30.2009.xls.'
b. Reductions were made to reflect actual vs, projected costs: 10% reductions for ProduchonrPurchased/Water, Transmission/Distribution,
and Admin/Engineedng; 4% reduction lot Customer Accounting and Sales.
c. Unless otherwise noted, annual cash expenditures are projections assume individual increases of 2%d ear.
d. From Debt Service Schedules shown in budget projections (AzusaRevReq-2-10-09 cak.xls).
e. Cash -funded capital projects not paid by revenue -bond proceeds. Estimates from AL&W's water master plan.
I. From Azusa Light & Water budge projections, adjusted per estimates for Standard & Poors (year-end budget numbers lot FY'08-09).
g. Other Revenue includes rents, leases. reimbursements, system development lees, interdepartmental fees, and miscellaneous other lees.
h. Cash Basis; excludes depreciation. Based on AM W's most current estimates as of 4-2.09. Miller Brewery revenue is determined through a separate contract.
'Amounts do not include reduction from offsetting Interest income on 2006 bond proceeds; offsets are expected to continue through end o1 FY 2008.2009 and offset approximately
$2 million.
.. .if)°:will
The financial plan evaluates the net revenue requirements shown in Table 3, together with the
revenue generated from current rates, additional revenue generated by rate increases, the total
amount of revenue needed to maintain reasonable levels of reserve funds, and the revenue
bond coverage requirements associated with AL&W's long-term debt.
Table 4 summarizes the financial plan and shows that current rate revenue of $12.46 million is
approximately $6.2 million less than the FY'09-10 net revenue requirement of $18.65 million.
FY 08-09 (a) FY 09 10 (ab) J
FY'10 11
FY 11 12
FY 12 13 t
FY'13 14
pq
gq.p,.nf _-FN
�,.,,w��,�.e.,..$�4r„Lt'T-
`r"'�i'a`wue:'uiY f.:'"n
a�
Production & Purchased Water
$5,269,902 1
$5247,4551
$5,404,878
$5,567,024 !
$5,734,035 (
$5,906,056:
Transmission and Distribution
2,671,1561
2,834,484 !,
l
2,919,5191
3,007,104
3,097,318
3,190,237'
'Customer Accounting and Salest
3,506,427
3,823,069
3,937,7621
4,055,894 1
4,177,571
4,302,898)
1
Uncollectible Accounts
30,000
60,000
i
61,800
63,654
65,564 ?
67,531
Administrative and Engineering
s 887,643
1,175,225 1
9
1,210,481 ;
1,246,796
1,284,200
1,322,7261
alInterest Expense - COP/Rev Bond (d)
t
j '3,432,295;
'3,403,77
3,361,070 9
j
3,314,471
3,265,670
3,214,125
Principal - COP/Rev Bond (d)815,000!
i
1,120,000
1,165,000
1,220,0001
1,265,000:
t
1,315,000;
Franchise Fee (2% of Retail Sa/es)(d) 301,5801 301,580 294,038 ' 339,791 339,791 ' 339,791
Subtotal Annual Cash Expenditures $16,914,002 i $17,965,583 $18,354,547 $18,814,735 $19,229,148 $1Xi 9;658,364
�.�tl:''#e' u����1��M k fig r�F,R {.��i (N9 Ek '
i �'� fid',.. ...�� rvl4 Poflfl m, aro ncaia nwr# aX'
'Capital Projects (e) ” $410001000 $3,000,000 $4,000,000 $4,000,000 ; $4,000,0001 $4,000,000
��� aa��i¢i
.h! �ih .. �J .I :.,".. .,G �w +h w 5G+ r
Fees Revenue ! $203,127 a $301,0001 $301,000 $301,000 1 $301,000 $301,000
Other Revenue (g) i 817,234 717,998 718,000 718,0001 718,000 S 718,000
,Interest Income 735,316 600,000 600,000 , 600,000 ! 500,0001 500,000
Transfer Out j (416,298)' (300,000)) (300,000); (300,000) (3001000) (300,000)
!Contracted Sales (Miller Brewery)1,000,000 1,000,000 ` 1,000 000 1,000,000 1,000,000' 1,000,000
Subtotal Non -Rate Revenue
$2,339,380 1 $2,318,998 ( $2,319,000: $2,319,000 $2,219,000 $2,219,000
Net Revenue Requirement (h) i $18,574,fi23 j $18,646,585 $20,035,547 + $20,495,7351 $21,010,148 $21,439,364
a. Expenditures are from or based on various AM sources, including 'Estimate of Unrestricted Cash Reserve, prepared for Standard & Poors,
lot FY End 2008-09,"AzusaRevRec1_2-10.09_cak.xts,"AzusaRevReq-3.30.09 cak.xis,'and'RevisedBudget-3-30.2009.xls.'
b. Reductions were made to reflect actual vs, projected costs: 10% reductions for ProduchonrPurchased/Water, Transmission/Distribution,
and Admin/Engineedng; 4% reduction lot Customer Accounting and Sales.
c. Unless otherwise noted, annual cash expenditures are projections assume individual increases of 2%d ear.
d. From Debt Service Schedules shown in budget projections (AzusaRevReq-2-10-09 cak.xls).
e. Cash -funded capital projects not paid by revenue -bond proceeds. Estimates from AL&W's water master plan.
I. From Azusa Light & Water budge projections, adjusted per estimates for Standard & Poors (year-end budget numbers lot FY'08-09).
g. Other Revenue includes rents, leases. reimbursements, system development lees, interdepartmental fees, and miscellaneous other lees.
h. Cash Basis; excludes depreciation. Based on AM W's most current estimates as of 4-2.09. Miller Brewery revenue is determined through a separate contract.
'Amounts do not include reduction from offsetting Interest income on 2006 bond proceeds; offsets are expected to continue through end o1 FY 2008.2009 and offset approximately
$2 million.
.. .if)°:will
The financial plan evaluates the net revenue requirements shown in Table 3, together with the
revenue generated from current rates, additional revenue generated by rate increases, the total
amount of revenue needed to maintain reasonable levels of reserve funds, and the revenue
bond coverage requirements associated with AL&W's long-term debt.
Table 4 summarizes the financial plan and shows that current rate revenue of $12.46 million is
approximately $6.2 million less than the FY'09-10 net revenue requirement of $18.65 million.
Municipal Water Rate Study
r:C+ 17 .. a ,•3tiv�P SiYula*^iM _.. '.z+€'�r,43a c s'.x.a;�e3nw c. ;,:_.-._ r
r>
Under basic cost -of -service principles, a 50% rate increase would be needed in order for AL&W
to meet the annual revenue requirement.
Table 4 -- ; i`v -Year Wat ( 1" r:u Financia' P!
'FOvilWl'7A{N.+xs.TtF�=sow
' d
FY 09-10 FY -10-11 t FY -11-12 FY'12-13 FY'13-14
Net Revenue Reqts. (a) $18,574,623; $18,646,5851 $20,035,547] $20,491 $21,010,14811 521,439,364;
,1, i�r`°'-m,_ ;r¢ - -•`u..� ",Mita
moi}
ME
Beginning Fund Balance (c) $25,950,787 {f $19,835,389 $13,648,028 $6,071,704 ($1,964,606)11 ($10,515,731)1
(Revenue from Current Rates (b) $12,459,224 $12,459,224 $12,459,224: $12,459,2241 $12,459,224 $12,459,224
less Net Revenue Regt's. { ($18,574,623), ($18,646,585($20,035,547 ($20,495,735 ' ($21,010,148); ($21,439,364)1
__._._..__......... _._ _...mow__ _ _._.___.._..__.
EndingFund Balance Cash Basis
( ) $19,835,389 513,648,028E $6,071,704 m -$1,964,806 - .-510,515,731_---$19,495,871
Ilkar�..477
�—
,.
,.fix.
Proposed Rate Increases ; 18.0% 15.6 % 0.0% 0.0% 0.0%
Beginning Fund Balance (c) $25,950,787 $19,835,389 $15,890,688 $12844,702 $9,338,528 • $5,317,941
Revenue from Current Rates (d) i $12,459,2241 $12,459,224' $12,459,224 $12,459,224' $12,459,224, $12,459,2241
Rate Revenue from Rate Increases :( $0 % $2,242,660 $4,530,337 t _ $4,530,337 ; , $4,5530,337 ; $4,530,337
Total Revenue from Rates $12,459,224 $14,701,884r $16,989,561 $;6,989,56V $16,909,561 $16,989,561
;less Net Revenue Regt's. j ($18,574623); ($18,846,585) ($20035,547 ($20495735); ($21,010,148 ($21,439,364)
Ending Fund Balance (Cash Basis) f $19,835,389' $75,890,68 �$12,844,702m $9,338,529J. $5,317,941 $868 138'
t — � Customer Growth Rate - Aesidenfial (d),w 0.0% j 0.0% 0.0% 0.04 0.0% 0.0% f
ICustomer Growth Rate -Non Residential (10.0% 0.0% 0.0% 1 0.0% 0.0% 0.0% I
L�__ Assumed Rate Implementation Dates; 7/1/09 7/1/10 i 7/1/17 _ 7/1/12 7/1/13
a. From projected budgets and does not include adjustments.
b. Revenue from service and commodity charges from AL&W projections (Rate Rev Forecast-4-9.09.pdf). Excludes Miller Brewery revenue.
c. FrOS-09 beginning -year fund balance provided by AL&W.
d. AL&W assumption or no annual growth for residential and non-residential customers is from staff communications 2-12-09.
However, due to current economic hardships AL&W customers are experiencing, AL&W staff
has recommended rate increases4 of 18% in FY'09-10 and 15.6% in FY'10-11. Although this
means cash reserves will decrease by almost $4 million (i.e., expenditures of $18.6 million less
total rate revenue of $14.7 million), AL&W has sufficient reserves and is able to cover this
shortfall. However, as discussed below AL&W will not meet the bond coverage test in FY'09-10,
but is expected to again meet coverage requirements the following two years. At staff's request,
this financial plan has not included rate increases after FY'10-11, but assumes AL&W will make
those future adjustments as needed.
,'9 e. R a.�, 4 :b
The long-term debt that AL&W has issued comes with certain bond covenants that require that
AL&W maintain a minimum "coverage ratio" defined as net operating revenue divided by total
As used here, the term "rate increase" refers to an increase in the total revenue collected through rates (i.e., service charges and
commodity rates) and should not be confused with "across-the-board" increases to the rates in each customer class.
Municipal Water Rate Study
annual debt service payments. A minimum ratio of 1.25 is required, although AL&W's policy is
to maintain a 1.6 ratio.
Due to the dramatic changes in AL&W's operating environment noted above, even with an 18%
increase in FY'09-10, AL&W's coverage will temporarily fall below this 1.25 minimum but meet
the required minimum in FY'10-11 and FY'11-12, as shown in Table 5. This table also indicates
that AL&W will need to make additional rate increases and/or expense reductions after FY'11-
12 in order to meet coverage
While making future rate adjustments and re -building adequate reserves will be a key factor in
AL&W's financial outlook, AL&W's strong reserve fund level and plans to meet coverage
requirements in the future indicate that the water utility can maintain a strong financial
position.
able -Pro}ecte.t tit t c e r �v . a Ratlr1s
Rate Adjustment 18.0/ 15.6% 0.0%
0.0% 0.0%
5}mU�
j Rafe Revenue Current Rates $12,459,2241 $12,459,224 $12,459,224a
$12,459,224: $12,459,224
Rate Revenue -Rate Increases $2,242,660 $4,530,337; $4,530,337!
$4,530,337 $4,530,337,
Other Water Revenues (a) $2,618,998_ $2 619,0001 $2,619_,000'
$2,519,000 $2,519 000
Total Operating Revenue` $17,320,8821 $19,608,551' $19,608,561 M
ry�,mrae{mr { :. iK-yy,..A114'ar rte, �' k' yy, a '.1$.,,
$19,508,561!$19,508,561
•1p>,t6LG".+ai"-
Py'ris`i+ i Skl:{�i1+1' xti✓6�5.at��
�F i � .. � .:. �:'. _.' .,�• ��x'yS'.
.-..
Production & Purchased Water $5,247,455 $5,404,878. $5,567,024}
iY�rl T'r.
$5,734,0359 $5,906,056;
Transmission and Distribution $2,834,484 $2,919,519` $3,007,1041
$3,097,318 $3,190,237,
Customer Accounting & Sales (b) $3,883,069.; $3,999,562 $4,119,548 $4,243,135 $4,370,429
Administrative and Engineering $1,175225 $1,210,481 $1,246,796 $1,284,200 $1,322,726:
- _ _. _a
Total Operating Expenses!$13,140,233 $13,534,44_0 $13,940,473: $_ 14,358,687, $14,789,448:
___.. ._ _.
Febt
$6 074121 $5 668088 $5149 ,874: $4,719,113
Service 2003 COP $1,551,583 $1,550,083 $1,555,283 $1,553,883: $1,555,138
Debt Services 2006 Revenue Bonds $2,972,188 $2,975,988; $2,979,188 $2,976,788' $2,973,988
Total Debt Service $4,523,770 $4,526,070 $4 534,471 $4 530 670 $4 529125
1.34 125 1.14 ... ._._.. -�
" �! _ ... _..... t 1.04
�.... __ ._.. _. _ _.... _...
a. Includes fees, interest income, contracted sales (Miller), and other revenue shown in the budget table.
b. Includes uncollectible accounts.
Assumes minimum of 1.25 required, policy target of 1.60
The cost -of -service rate analysis HDR prepared requires allocating the budget line items shown
in Table 3 to the various functional cost categories, including customer, capacity, and
commodity costs. These allocations are summarized in Table 6. The costs shown in this table
that are allocated to meter service charges are the sum of customer and fixed -capacity costs,
Municipal Water Rate Study
This table indicates that approximately 42% of revenue requirements should be collected
through service charges, with the remainder collected through commodity charges.
Tabic - Summary of Rate Rcver,ts a & .ost- Allo4y:.,-ions (FY'09-10)
Cost Allocations
Customer Capacity Meter a�ri1 x�n
t�
Costs j Costs Charges
Allocation of Net Rev. Regt$1,873612: $6,153850
's. $7,827,462 j $10,819,122 $18,646,585'
�
% oftotal 9.0%1 33.0%' 42.0% 58.0% 100.0%
......._.__.. ... _ __ __... _. _ _. _ . € _ ..-.I- ..
Adjusted Allocation W Rate Increase) (a) $1,319,558 $4,851,998 $8,171,558 $8,530,328 $141701,884
1
% of total 9.0V 33.0% 42.00/6; l 58.0% l 100.0%1
Note. These revenues exclude Miller Brewery revenue, estimated to be $t million, which the City collects under a separate contract.
a. Cost -of -service net revenue requirements, less Miller Brewing Company revenue, plus rate increase.
As shown in Table 6, the total revenue requirement of $18.6 million is adjusted downward in
the financial plan to $14.7 million. That is, the financial plan determines the additional rate
revenue that will be collected through rate increases; this additional revenue plus the revenue
from current rates make up this "Adjusted Allocation" of $14.5 million. The calculations of the
meter service and commodity charges are described below, followed by a summary of the
commodity rate revenue collected from each customer class.
As shown in Table 6, the total revenue allocated to "meter service charges" is approximately
$6.2 million, or 42% of the $14.7 million total. This $6.2 million is collected through two types of
meter service charges:
is A smaller fixed charge for each account
-V A larger capacity charge based on the total "equivalent meters"5
Table 7 summarizes the calculated meter service charges for FY'09-10.
5 Equivalent meters reflect the total hydraulic capacity of various size meters, and therefore the number of "equivalent" residential
meters. Therefore, meter service charges increase in direct proportion to the size of the meter, or number of equivalent meters.
Municipal Water Rate Study
N. d
Table 7 C:aicula.tiori of Propc.5',ed Cost cf. Se. -Vice. Wti�r 3er.ls e Charge.--,
....... 7..•Y � :.M ;'�"S•' �.���.� xniat�}}�r� 7 4�''. � ��'e„3Siiholbf,3- ��'�"�,
5/8-314" I 1 1 1/2" 1 2 3 4' r 6' 8' 10 12 S �'
re,•fY.r'.�..,,w 'reKt '3it�Y HIM
tAccounts (a) 17,256 1,489 i 259 864 114 ` 116 1- 154N 99 _ 20 f 1 20,372
Equivalent Meters (b) 17,256 2,487 ! 662 4,605 1 330 r 211320 ; 6,417 5,940 ( 1'63i 1 143 1 43,295 j
Customer Costs S� cct) $5.40 u9 $5.40 $5 40 $5.40 $5.40 $5.40 $5.40 $5 40 $5 40y $5.40
_ ._ _. _ __ _
-. Capacity Costs (A)Accu _ 934E 60 31 9.78 186.78 9.16 560 35 902.81 $1,338.§§
'
Total Monthly Meter Char ei _ $11:4::.74L $20.99 1 $36.50 $5518 $114.39 1 $192.18 $394.56 $565.75 $908.21 $1,343.98
s:rM711z r
t Customer Costs . $1 117,725 $88 447 $16 776 $55964 + $7,384 $7,514 $9,975 $6,413 $1,295 _ $65 '$1.319,558
s
_ _
I Capacity Costs 1 933 873 78 676 96 657 t 516 094 149 095 260 001 719 171 $665 693 216 75 16 063 t .851.998
Total Annual Revenuer $3 051,598 $375,123 $113 433 l $572 058 $156,479 ''1 $267,516'1 $729,146 $672,106 '$217 971 $16128 $6,171,556
�3»fian+ .,.»� ,.e6 ,m, +ar, <_, y�),bk.•� ftA uJ a
Customer Costs $1,379,558=
Capacity Costs
Total Fixed Costs $6,171,556
I _
IFtydrauhcCapaatyFactor(b) . 100 167 3.33 x _533 t 11.67 1 20.00 41.67 60.00 .y_ 96.67 143.33
a. Source: City Records tor2007.
b. Accounts times the hydraulic capacity /actors (AWWA standards reflecting the higher potential demand that larger meters place on the system).
Source. AWWA Manual M6 (Fourth Edition), Table 5.3, Test Requirements for New, Rebuilt, and Repaired Cold -Water Meters.
d. Flied costs to be recovered through Monthly Meter Charges. From the adjusted cost allocations for FY'09-10.
The cost allocations previously shown in Table 6 indicated that approximately $8.53 million
should be collected through commodity rates. The percentage of this revenue allocated to each
customer class (or meter size) is based on their total annual water consumption. Table 8
summarizes this calculation and shows the total revenue requirements for each meter size.
Tabic -- Cobsurn idon arld (_-;rn-rtotE,C C`-Iait_'� Revenue ,(FY'O,-',,-
i�'- ! 0)
ib/b-J/4 Meters y _ 3,557,1345 3,557,845 ' 51.0% 1$4,352,330:
1 'Meters
524,188 524 188 7.5% $641,242,
11.5" Meters 1 K 234,264 234,264, 3.4% $286,576'
12" Meters 914,071 _: 914,071: 13.1 /° $1,118,188'
±3" Meters 331,676 ` 331,676 ' 4.8% $405,741
4" Meters 706,005 706,005 1&.1% + $863,6601
16" Meters 11,430 11,430 0.2% i $13,98_2
;8" Meters 194,995 l 194,995 2.8% $238,538
10" Meters 378,502 - 378,502 5.4% $463,023f
_. _ __..
IGolf Course 120,205 120,205 1.7% $1.47,047;
Totals 6,973,181 6,973 181 100.0%
t Average Commodity lJnit Cost ($/ccf) (d) W _ $1.223!
a. December 2008 through January 2009. Excludes water use by Miller Brewery,
non -billed municipal accounts, and assumes FY'09-10 will be the same as in 2008.
b. Estimated FY'09-10 consumption, including the adjustments shown.
c. Allocated based on annual consumption.
d. Average commodity unit cost, which applies to the Golf Course.
<. Municipal Water Rate Study
The recommended new two-tiered rate structure adjusts the tier breakpoints based on the most
recent consumption data, moving them closer to the average winter consumption levels. Table 9
shows the current and recommended new commodity rates and tier breakpoints.
4 r :le q - CRirreni aro Proposes Cost-of-Servic:,, Coi ,imodit:y Rags (FY --09 - t'ti
•tiff Tier 1
j Breakpoint
5/8"-1 " Meters i $0.871
18 ccf
-
31.5"- 2" Meters $0.871
! 130 ccf
4" Meters $0.871
670 ccf
16" - 10" Meters _$0.871
!Golf Course
! 13,000 ccf
(c) ;- $1.070
i --
Tier 2 i
Tier 1 1113reakpoint. Tler 2
$1.378
$0.982
12 ccf $1 553
15/8 1 'Meters $0 8p 71 18 ccf $1.378
-._
1:1.5"-
$0.982
120 ccf $1.553
_$1.378
$1.378
$0.982
600 ccf i $1.553
$1.378 r
$0.982
- 10,000 ccf 1 $1.553
240 ccf
$2.322
--
t taw, ryfia`y Camf xc>r. _": }f 'acres - AL&W is currently in a Phase 11 drought stage, which targets a
10% reduction in consumption, primarily through landscape watering restrictions. The analysis
in this report is based on this Phase I1 consumption pattern. However, if, based on drought -
related water supply conditions, AL&W determines a Phase III declaration is required, an
additional 10% reduction in consumption is then targeted, mainly through additional landscape
watering restrictions, and enforced using Drought Patrol staff. 6 Table 10 shows the three -tiered
emergency rate structure that would be implemented in this case.
T :;rile 10 - Current and Prov.:.: _!J 'C-ost-of-Sere:...e! _.nr e,-gency (Phase. ill. Drought.)
Commodity Rates (FY-- _>'' 0)
' Tier 1 Breakpoint j -Tier 2
Tier 1
Breakpoint Tier 2
i Breakpoint i
Tier 3 I
15/8 1 'Meters $0 8p 71 18 ccf $1.378
-._
1:1.5"-
$1 031
° 12 ccf $1 631
36 ccf f
$2.322
2" Meters $0.871 130 ccf $1.378
$1 031
120 ccf
$1 631
240 ccf
$2.322
3 - 4 Meters i $0.871 670 ccf $1.378
5i.031
600 ccf
° $1.631
1,200 ccf
$2.322 !
6" - 10" Meters l $0.871 ;� 13,000 ccf t $1.378
$1 031
c
10,000 cf 1.631 20 000 ccf ;
$ t.__ ... .
$2 322
Golf Course $1.070 -- -
1$1.359
= -- -- --
Successfully reducing water consumption by an additional 10% also decreases the revenue from
commodity rates. In order to maintain adequate levels of rate revenue, AL&W would need to
adjust the commodity rates upward in order to meet the revenue requirement. The emergency
rates shown in Table 10 were developed to meet this objective, with the breakpoint for Tier 3 for
5/8-1" meters set at roughly twice the average residential summer -time consumption level.
6 Rule No. 21 of AL&W's Rules & Regulations permits the Utility to declare progressive stages of drought response, described as
Phase I through III, which involve progressive measures to reduce overall water consumption.
Municipal Water Rate Study
These emergency rates also recognize that there should be a greater decline in water use in Tier
3 than in Tier 2, as well as a higher reduction in Tier 2 than Tier 1.
f6iwivo&w .'«:=;n Revenue— The total revenue generated by water rates, which was determined
by both the financial plan and cost allocation process, was used to calculate the projected service
charges and commodity rates previously shown in Tables 1 and 2. The estimated revenues from
new commodity rates for FY'09-10 are shown in Table 11 (new two-tier rates) and Table 12
(three-tier emergency rates).'
1..oi'!l.ii:." it*y` Rates a€";ua RAti R i -err e .... _rCmos,.�, Ra.t.es±-`«'....�`.r9
",E Tier 1 Rate Revenue
5/8" 3/4 Meters $0.982 $2,194,002
1"Meters' $0 982 $190 824
1.50 Meters 3 $.0.982 ; - $178,050,
2" Meters # $0.982 _ $460,664
3" Meters- $0.98_2 1 _ $258,803
!4" Meters $0.982 $2_93,016
�6" Meters $0.982 — $11,222
18 Meters 1 $0.982 1 $191,451
,10" Meters $0.982 ? $107,446
Golf Course (c) $1.223 $147,047
Tier 2 Rate Revenue Wn ,�s„asd 1
$1.553 $2,055,420 $4,249,422 $4352,330e
$1.553 $512,340
i $703,165 ' $641,242`
$1.553 _$82,200 1_ $260,24_9 $286,5761'
_ $1.553 ^ry _$691,049 i $1,151,713 ? $1,1 1 8, i88
$1.553 $105,755 i $364,557 $405,741
11
$1.553 $633,086 $926,103 $863,660§
$1.553 $0 , $11,222 $13 982
$1.553 $0 $191,451 Y1' _$238538
$1.553 V $417,953 i $525,399 ± $463,023:
-- I $147,047 1 $147,047
;Total Revenue --_ _$_4,032,525 ` $4,497,803 = $8,530,328 $8,530,328
a. Current Tier 1 rate ($0.871/ccf) with cost -of -service adjustments. Revenue is Tier 1 rate times Tier 1 consumption.
b. Current Ter 2 rate ($1.378/ccf) with cost -of -service adjustments. Revenue is Tier 2 rate times Tier 2 and 3 consumption.
c. Golf course rate is the average cost of water (i.e., total revenue requirements divided by total consumption).
I Although the actual revenue from each customer depends on their consumption by tier, the annual revenue for each class is the
result of using the same tier rates for all classes. Target revenues could be matched more closely if rates were set separately by class.
y .
Municipal Water Rate Study
_ 3 ie 12 -- Ernei gericy (P lase 16, Drougint) C:o n1` oediry Rates and Revenge ( , J)
r�
Tier 1 Rate Revenue 'Tier 2 Rate
Revenue i Tier 3 Rate'
Revenue
5/8 3/4 Meters
$1.031 $2,154,9161
_.__._. .
$1.631 u
$1,724,982 F $2322
_.
mak#
$237409' $4,117,307 i $4352330;
1Meters
$1.031 $187,425
$1 691
$276,447 $2.322
$253,500 t
$717,3721
$641,242
1.5" Meters
l
$1.031 $174,878 9
$1.631
$_55,254 ' $2322
...
$26,875 �
$257,006 ;
$286,5761
12" Meters
$1.031 $452,457 j
__..
$1.631
,
$308,834: $2.322
_._..__
$422,982 ;
.._ ._._
$1,184,272 E
_286,. ..
$1,118,188:
3" Meters i
$_1 0_31r i .$ 4.92-4.__
�1.6- 31 --
-$72 559 _$2 .322
,
135_9,463
$4057411
4' Meters J$1031 i $287,796
$1.631$167,569
,9
$988,884 i
$863,660;
6" Meters
$1.031— $11,022
$1 631
$0 ; $2,322
$0
$11,022 k
$13,982
8' Meters
$1.031 $188,040
$1 631
2
$04 $2.322
�w
._ _. �
_ $0
�5-�
$188,040 t
$238538
10" Meters
$1._31
$1.031 $105,532
$1.631
_
$133,983 $2.322
$322,657
$562,172
$463023
Golf Course (d)
$1.359 i $144,790
.,,.r.
-- - $144,790 $147,047
Total Revenue !
- ; $3961,047 :
._._... _. _ '. —
$2,739 628
' .... _ i._ .... _
$1,829,653 •
$8,530,328 ;
$8,530,328
a. Current Tier 1 rate ($0.871/ccf) with cost -of -service adjustments. Revenue is Tier 1 rate times Tier 1 consumption.
b. Current Tier 2 rate ($1.378/ocf) with cost -of -service adjustments. Revenue is Tier 2 rate times Tier 2 consumption.
c. Current Tier 3 rate is set so that total rate revenue meets cost -of -service requirements. Revenue is Tier 3 rate times Tier 3 consumption
d. Golf course rate is the average cost of water (i.e., total revenue requirements divided by total consumption).
Municipal Water Rate Study
11IM11111
V Municipal Water Rate Study
A
Pf 0. r It* h I Y IN' an e r ri.
Using the proposed new C.O.S. rates and emergency drought rate structures, we can calculate
monthly bills for AL&W customers. Figure 2 compares these monthly water bills with current
rates by level of consumption for 5/8" to I" meters, which make up 87% of all AL&W accounts.
$160
Water f3ifis for 5/3"- 1` Illelem by Consumption Levei:
Prop i 10)
Proposed Cost -of -Service & Emergency Rate Structures
$150
Ln
;i
60�
$140
7—
$130
IM Current 2 -Tier Rate Structure
$120
0 New 2 -Tier Rate Structure
o
C')
$110-
12 3 -Tier Emergency Rate Structure
n 0
Cq
$100 -
LO 0) LO
U') W C?
rn
$90 -
15
-�r
LQ
L6 co
00 Go
0 $80 -
0 In
a)
$70-
CO r,
69).
CO —
LO W to
LO
-M
L.-
$50-
C�
C\I C-4 CO 00
�7.
$40-
4 Ui
'U C, M
$30
$20-
V3
7,
$10-
$0
10 ccf 17 ccf 20 ccf 30 ccf
40 ccf
50 ccf 60 ccf
70 cd
Figure 2 - Monthly Water Bills for 5/8" — 1" Meters by Consumption Level
Ej Municipal Water Rate Study
AL&W staff requested that HDR include two additional rate adjustment alternatives: (1) an 18%
across-the-board increase to commodity charges; and (2) increasing Tier 2 rates by 22.6% but
keeping Tier lcommodity rates unchanged. These alternatives were prepared by AL&W staff
using consumption and other data from HDR's analysis. While HDR is proposing the City use
the cost -of -service rates, these staff alternatives both meet revenue requirements and are
presented for consideration by the Azusa City Council.
18N .At i i,% -1 -he-- 6card it?,_Te isle — Commodity rates may be increased by applying a flat
percentage across all existing tiered rates. Increasing both Tier 1 and Tier 2 rates for all services
by 18% comes close to meeting the revenue requirements of this study. Commodity rate
changes are shown in Table 13 along with expected revenue.
Table 13 Alternative--c-rrimodity Rates 0 8% Across tbe- Board increase)
Tier 1 Rate Revenue
45/8"-3/4" Meters $1.028 $2,922,647
1"Meters $1.028 $268949
IS Meters $1.028 $191,954
2" Meters _ - $_1.028 l ` $506,859
3" Meters $1.028 _$281,670
i4" Meters - $1.028 �- $325,356
�6" Meters $1.028 ^� _ $11,748
8 Meters $1.028 $200,412
;10" Meters $1.028 $143,309
Golf Course (c) $1.223 g $147,011
Tier 2 Rate
Revenue
$1.626
$1,161,310.
$4,083,956 f
$4,352,330;
$1.626 `
T $426,849
$695,798 ; `
$641,242
$1.626 l
—,_...
$77,234 ' $269,188:
$286,576
$1.626
$684,420 $1,191,279
$1,118,188
$1.626 i
-$1.626
$93,6911
$375,36_1 ;
$405,741,
_
$633,250
$958,606 $863,660
^
$1.626 ,._
_$
.�� __�_._......
$11,748 i
_.. -:
$13,982.
$1.626
- _ $0.:
$200,4 2
$238,5381
$1.626
$388,733
$532,041 1
$463,023'
--
$01
$147,011
$147,047
Total Revenue -- l $4,999,914 -- $3,465,485 $8 465 3
__............ __ _ - -a-- I _.._.....99 $8530,328
a. Current Tier 1 rate ($0.871/ccf) with cost -of -service adjustments. Revenue is Tier 1 rate times Tier 1 consumption.
b. Current Tier2 rate ($1.378/ccf) with cost -of -service adjustments. Revenue is Tier rate times Tier2 and 3 consumption.
c. Golf course rate is the average cost of water (i.e., total revenue requirements divided by total consumption).
Tier 2. R;?!e 1nc:`m &ase/it,'loditica*%r_r of Tier Break — To increase the incentive for water
conservation and reward those who have been engaging in conservation, Tier 1 rates could
remain unchanged and the revenue requirement could be met by increasing Tier 2 rates by
22.6%. Minor changes to tier breakpoints for 1.5" and 2" meters were necessary to meet the
revenue requirement in this alternative.' Commodity rate changes are shown in Table 14 along
with expected revenue. Emergency commodity rates following the same approach of holding Tier
1 rates to current levels are shown in Table 15 along with expected revenues. Table 16 shows the
slight change in tier breakpoints for both alternatives in contrast to HDR's new C.O.S. rates.
8 HDR's breakpoints of 120 ccf were reduced to 100 ccf for 1.5" and 2" meters.
.4
Municipal Water Rate Study
Table 14 - Alter -native, Comilriodity Rates (Tier 2 Rate Increase)
Tier 2 Rate Revenue
Tier 1 Rate Revenue
-5/8"-3/4 Meters $0.871 $1,946,355 $1.690 $2,236,249 $4,182,603 $4,352,3301
:1 e-te-rs
$0.871 $169,285
,1.5" Meters
$0.871
1
$146,239
..........
Meters
$0871
$362,920
'3" Meters
i $0.871
$229,590
4' Meters
$0 .871
$259,942
..' 6 1 M . eters
$0 ,871
$9,956'
r8" Meters
$0.871
$169,841
10" Meters
1$0.871
$95,318
--�—
--
Golf Course (c)
$1.223.
$147,011
$1.690 $557,414 $726,699 $641,242'
$1690 $112,159 $258,398 $286,576
$1.690 $840,608, $1,203,527 i $1,118,188:
$1.690 $115,059 $344,649 3 $405,741!
$1.690
$688,783 $948,725 $863,660
1.690 $01. $9,956 $13,9821
$1.690
$0 $169,841 1 $238,538
$1.690 $454,7231 $550,041 $463,023
$0 $147,011 T $147,047
Total Revenue $3,536,456 i $5,004,994 $8,541,450j $8,530,328
a. Current Tier 1 rate ($0.8711cof) without cost -of -service adjusir-�jnii7fiev;'nLe is Tier I rate times Tier 1 consumption.
b. Current Tier 2 rate ($1.3781ccf) with cost -of -service adjustments. Revenue is Tier 2 rate times Tier 2 and 3 consumption.
c. Goff course rate is the average cost of water (i.e., total revenue requirements divided by total consumption).
T a
� ble 1 -5 -,-.lergency Commodity Rates Crier 2 & lncrea5.es)
Tier lRate Revenue 7;Tier 2Rate Revenue Tler3Rater Revenue
,,,330
Meters $0.871 1 $1,820,648 $1.842 $1,948,462 2.623 $268,166 $4 037,276 1 $4 352
1'"- Meters- $158,352 $1.842 $312,263 $2.623 j $286,343 $756,957 $641,242
1.5"Me!ers__.J $1.842 $62,412 $i,623 $30,356
�0. L71 $147,751 $240,619 $286,576,
2" Meters $0.871 $1.842 $348,8451 $2.623 $1,208,898'-' $1,118,18"8
$0 $214,762 -'$1- �81'959
.3" Meters $36,950 $333,672 $405,741
4" Meters -i6.871 $243,154, $1.842 _��2F!639! $1,035,071 f $863,6601
:6" Meters •$0871 $9,313 $1.842 $01 $2:�.2� J $0 $9,313 I
!18" Meters $0.871 $158,871 $1.842 $0 T2
1 .623 $158,871 $238,538
. ..... .........
10Meters $0.871 $89,162 $1.842 $151,341 $2.623 $364,459 $604,962, $463,023
,
;Golf Course (c) $1.359 $144790 1 $0 $0 $144,790 $147,047,
Total Revenue $3,369,073 $2,066,6941 $8,530,3281 $8,530,328
a. Current Tier 1 rate ($0.87-1lc-cf) with out cost -of -service adjustments. Revenue is Tier I rate times Tier I consumption.
b. Alternative Tier 2 and 3 rates with adjustments to meet revenue requirements.
c. Golf course rate is the average cost of water (i.e., total revenue requirements divided by total consumption).
= k Municipal Water Rate Study
'fable 1 G - Tier Breakpoints for Alternative 2 -Tier & Emergency Rates
R J
Tier 1 Tier 2 i Tier 1 Tier 1 Tier 2
5/8"-1" Meters j 12 ccf 36 ccf12 ccf l 12 ccf 36 ccf `
___
1.5"- 2" Meters 120 ccf 240 ccf 120 ccf 100 ccf 200 ccf
Meters 600 ccf _ 1,200 ccf 600 ccf _ 600 ccf 1,200 c_cf_
j 6" 10" Meters 10,000 ccf 20, 000 c- cf yv 10, 000 ccf 10
- Y� -
i , 000 ccf ; 20, 000 ccf
a. Only Tier 1 breakpoint apply to the 2 -tier rates. Tier 2breakpoints only apply to the Emergency Rates
Table 17 summarize the current and proposed cost -of -service commodity rates for this second
alternative, which have no increases in Tier 1 rates and have modified tier breakpoints.
fable 17 - 2-?'ier & Emergency Comm-lodity Rates
-
i
Customer Class Tier
Rates
'I.wdli-',kRP.S^
! Breakpoints Breakpoints
l'NNI%.tlWAiTN 1:4Y.+"1TSp`r' �' .1..
J July 1 2009 July 1 2010
L ',tra,�rt vxr�r 'r
wa•y
in.
R Tier 1
5/8" - 1 " Meters
$0.871
18 cc/ 12 cc/
$0.871
$1.007
$ 1.690
$1.953
Tier $1.378-- -
1.5"- 2" Meters
Tier 1 1
$0.871
130 cc/ 100 cc/
$0.871
i $1.007
Tier
$1.378
i -- --
$1.690
$1.953
r
i 3" 4" Meters
Tier ;
$0.871
670 cc/ 600 cd
$0.871
t $1.007
Tier2$1.378
-- --
$1.690
$1.953
6"- 10" Meters
Tier 1
$0.871
13,000 ccl 10,000 ccf
$0.871
$1.007
Tier
$1.378
- --
$1.690
$1.953
Golf Course
$1.070
--
$1 223
$1.413
;I
j Tier 1
$0.871
18 cc/ i 12 cct
; $0.871
I $1.007
i 5/8" - 1" Meters
Tier2
$1.378
-- 36cct
i $1.842
j $2.129 j
Tier 3 l
--
-- -- j
$2.623
$3.031
Tier 1
$0.871
130 ccl 100 cc/
$0.871
$1.007
1.5"- 2" Meters i
1
Tier i
$1.378
-- 200 cd
$1.842
$2.129
Tier 3
--
i -- --
$2.623
$3.031
Tier 1
$0.871
i 670 cc! 600 ccl
$0.871
$1.007
Tier
$1.378
-- z 1,200 ccf
$1.842
$2.129
3"- 4" Meters
Tier 3 ?
--
--
$2.623
$3.031
Tier 1
$0.871
13,000 cot 10,000 ccl
$0.871
$1.007
6"- 10" Meters
Tier
$1.378
20,000 ccl '
$1.842
$2.129
Tier 3
--
-- --
.$2.623
$3.031
Golf Course
-
$1.070
1 --
$1.359
$1.571 1
E
Increases in Total Rate Revenue
18.0% 0
15.6%
Municipal Water Rate Study
Azusa Light & Water has encountered some significant changes in its operating environment,
most notably the impacts resulting from:
The economic downturn, which has dramatically cut into the projected 2% growth rate and
reduced rate revenue.
A 17% reduction of billed water consumption over the last two years; AL&W does not expect
consumption to return to previous levels, but to mostly remain at reduced levels for the
foreseeable future of two to five years.
Continued uncertainty related to the expected drought this summer, which will require
advanced planning and additional measures such as establishing an emergency drought rate
structure.
is The loss of approximately $750,000 in revenue due to a change in the way sub -metered accounts
were billed, coupled with a more than doubling of the annual debt service payments.
These factors have required AL&W to re-evaluate the financial outlook and rates, as well as to
plan for drought conditions. This report has briefly summarized the results of HDR's cost -of -
service analysis and the impacts on AL&W's service charges and water rates. HDR has worked
closely with AL&W staff to develop accurate data and review alternative rate structures in
order to calculate cost -of -service rate structures presented in this report, including the new two-
tier and emergency three-tier commodity rates.
At the conclusion of HDR's analysis, AL&W staff developed two alternative rate structures,
including an alternative emergency rate structure, which meet revenue requirement and are
provided for the consideration of the Azusa City Council.9
In response to these conditions, HDR's analysis recommends:
12 Adjusting the current commodity rate structure, most notably by adopting an 18% increase in
total rate revenue on July 1, 2009 instead of the planned 6% increase. (Although this 18% increase
will not fully fund the FY'09-10 revenue requirements or meet coverage requirements, AL&W staff
recommends this approach, which includes funding the $4 million shortfall with existing reserves, rather
than increasing rates by more than 18%,)
9 HDR's analysis provides cost -of -service based rate structures prepared in order to best comply with Prop 218 requirements to the
extent possible within the constraints of AL&W staff's directions regarding rate structures and other assumptions. HDR is not
necessarily recommending the City use AL&W staff's rate alternatives, although believe they should meet revenue requirements.
Municipal Water Rate Study
Making a second adjustment to service charges and commodity rates by adopting a 15.6%
increase in July 2010; this increase is needed to meet the debt service coverage requirement.10
Al Creating a three-tier emergency rate structure tied to a Phase III drought declaration that
assumes billed water consumption must decrease by an additional 10%; this rate structure is
designed to still recover the same rate revenue as the proposed two-tiered cost -of -service rates.
Review and consider adopting the new cost -of -service commodity rates for FY'09-10 and FY'10-
11 previously shown in Table 1."
Review and consider adopting the new three-tier emergency commodity rates for FY'09-10 and
FY'10-11, also previously shown in Table 1.
Adopting the new service charges for FY'09-10 and FY'10-11, previously shown in Table 2.
Proceeding with the Prop 218 notification and protest process needed to implement which ever
rate structure alternative is selected by the City Council.
HDR's proposed cost -of -service rates for FY'09-10 and FY'10-11 are considered to be equitable
to AL&W's water customers as a whole under the existing rate structure and data provided by
AL&W. Over the next two years, these rates are expected to provide adequate income to meet
expenses, satisfy debt service coverage requirements in the second year (only), maintain a
prudent level of reserves and, in the long run, continue AL&W's strong financial position.
However, AL&W will need to re-evaluate both the financial plan and adequacy of the service
changes and commodity rates and make additional adjustments as needed before FY'11-12.
10 The minimum debt service coverage ratio, which is the net operating revenues divided by annual debt service payments, is 1.25.
The recommended 18% and 15.6% rate increases will meet coverage requirements in FY'10-11 and FY'11-12, but not in FY'09-10
(see Table 5 above).
11 The Azusa City Council may also want to consider AL&W staff's rate alternatives in light of policy considerations, although HDR is
not necessarily recommending those alternatives from a cost -of -service perspective.
�a a
Monthly
Meter Service
Charges
Service
Current
Scheduled Increasesb
Proposed New Rates
% Change
Size
Charges (a)
_
% Change (d)
(c)
(d)
5/8-3/411$12.50
$13.25
6.0%
$14.74
17.9%
1
$17.61
$18.67
6.0%
$20.99
19.2%°
1 1/211
$30.27
$32.09
6.0%
$36.50
20.6%
211
$45.53
$48.27
.6.0%
$55.18
21.2%
311
$93.91
$99.54
6.0%
$114.39
21.8%
411
$157.46
$166.91
6.0%
$192.18
22.1%
611
$322.80
$342.17
6.0%
$394.56
22.2%
81f$462.65'
$490.41
6.0%
$565.75
22`3%
1011$742.44
$786.98
6.0%
$908.21
22.3%
12"
$1,098.44
$1,164.35
6.0%
$1,343.98
22.4%
Alternative 3 — Conservation Schedule
Commodity Rates • -10)
Customer Current Rate Structure New Rate Structure
Class
Tier 1
Breakpoint
Tier 2
Tier 1
Breakpoint
Tier 2
5/8"-1" Meters
$0.871
18 ccf
$1.378
$0.871
12 ccf
$1.690
1.5"- 2" Meters
$0.871
130 ccf
$1.378
$0.871
100 ccf
$1.690
3"- 4" Meters
$0.871
670 ccf
$1.378,
$0.871
600 ccf
$1.690
6" - 10" Meters
$0.871
13, 000 ccf
$1.378
$0.871
10, 000 ccf
$1.690
Golf Course
$1.070
--
$1.223
7
'
Emergency
Rate
Rates & Tier
Breakpoints
•
-10)
Customer
Class
Tier 1
Breakpoint
Tier 2
Breakpoint
Tier 3
5/8"-1" Meters
$0.87
12 ccf
$1.842
36 ccf
$2.623
1.5"- 2" Meters
$0.87_'
100 ccf
$1.842
200 ccf
$2.623
3"- 4" Meters
$0.87
600 ccf
$1.842
1,200 ccf
$2.623
6" - 10" Meters
$0.87
10, 000 ccf
$1.842
20, 000 ccf
$2.623
2009
Water
Rate Survey
- Bi -Monthly Rates
For 3/4''
meter
- 17 hundred
cubic feet per month
Claremont - GS
$110.23
San Dimas- GS
N
$110.23
Rowland Wtr Dist.
$108.70
La Verne
07 .02
e
.:
Pomona
$88.25
Alhambra
a J. .
$87.44
Glendora
:: $84.22
�� ,. ..
� ._.
.::.
2010 AZUSA RATE
$77.76
Suburban (W. Covina)
$76.81
Suburban (Covina)
i
$76.81
Covina
$75.12
2009 AZUSA RATE
$67.28
Monrovia
$65.06
Cal Am (Duarte)
$61.99
Monterey Park
$58.80
Azusa
54:61
$0_
$20
$40:
r
$60 $80 $100
$120
4
13
PUBLIC HEARING
TO: HONORABLE MAYOR AND MEMBERS OF THE AZUSA CITY COUNCIL
VIA: FRANCIS M. DELACH, CITY MANAGERAy�
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: JUNE 15, 2009
SUBJECT: REFUSE RATE ADJUSTMENT
RECOMMENDATION
It is recommended that the City Council (1) open and conduct a public hearing to consider refuse rate
reduction for single family and commercial services, and rate increase for multifamily services
effective July 1, 2009; and (2) close public hearing, and if a majority protest has not been received
from notified property owners, adopt attached resolution approving amendment number thirteen to
the Exclusive Franchise Agreement with Athens Services.
BACKGROUND
The City of Azusa has an Exclusive Franchise Agreement with Athens Services for refuse collection
and recycling services. The City is obligated to adjust refuse collection and recycling rates each year
based on the methods specified in the Agreement with Athens Services. The newly adopted rates are
to go into effect July 1 of each year.
Rate adjustments are made based on changes in: (1) the Consumer Price Index (CPI); (2) per ton
rates at the Puente Hills Landfill; and (3) amount of tonnage collected from Azusa residents and
businesses. For purposes of the annual rate adjustment, refuse rates are broken down into four rate
components, plus an additional amount apportioned to single family and multifamily customers to
offset uncollectable accounts estimated at $40,000 next fiscal year.
(1) Service Fees. These are used to pay for trucks, personnel, and operating expenses such as diesel
fuel. Service fees or collection costs are adjusted by the consumer price index (CPI) change from
January to January based on recent contract amendment. The CPI change from 2008 to 2009
went down slightly at -0.09% which has favorable effect on rate adjustments for customers.
(2) Processing and Disposal Charges. These are used to pay for the cost to process waste through
Athens' MRF, as well as the cost to dispose of yard waste and solid waste at the Puente Hills
landfill. The non -landfill portion of the per ton MRF rate is adjusted by change in CPI, and the
landfill charges are passed on to ratepayers on a dollar -per -dollar basis such that Athens does not
profit on changes in landfill costs or fluctuations in tonnage amounts. Landfill costs are
increasing next year from $33.86 to $38.26 per ton. The Agreement requires that costs and
revenues be tracked and "trued -up" each year, rather than just applying the CPI to a particular
rate component. In calculating the disposal costs, Staff has also invoked Section 17 of the
Agreement which allows Azusa to reduce the gate fee used to calculate the processing cost if an
agreement with another city that .is served by the Contractor includes a lower MRF rate. The City
has re -calculated its disposal costs following Covina's lower gate fees. Following show costs and
revenue from rates by customer class for 2009-2010:
Single Family Barrel Customers
$552,566.88
MRF+Landfill Costs
$890,228.42
Yard Waste
$43,406.12
Total:
$933,634.54
Revenues to Athens
$1,001,649.07
Revenue Excess:
$68,014.53
Prior Yr Excess:
$23,249.55
Credit to Customers:
$91,264.08
Multifamily Bin Customers
MRF+Landfill Costs
$552,566.88
Revenues to Athens
$523,194.70
Revenue Shortfall:
$29,372.19
Prior Year Excess:
$55,628.08
Credit to Customers:
$26,255.89
Commercial Customers
MRF+Landfill Costs
$828,108.99
Revenues to Athens
$856,785.15
Revenue Excess:
$28,676.16
Prior Yr Excess:
$33,718.16
Credit to Customers:
$62,394.32
Tracking above costs and revenues helped save rate payers $179,914.29 through this rate
adjustment. About $8,972 of this total was gained from using Covina's lower per ton rate for
MRF processing as allowed by Section 17 of our Agreement. Using Covina's per ton MRF rate
prospectively helped save another $12,096 in this rate adjustment. These credits combined with
lower disposal tonnages helped offset landfill rate increase for most customers.
(3) Franchise Fees. These fees represent City fees that are used to administer the contract and pay
for wear and tear on City streets caused by disposal trucks. The franchise fee represents 10% of
the sum of the service fee, disposal/processing fee, and franchise fee itself for each customer
class (See Exhibit A to attached Resolution).
(4) AB 939 Fees. These fees are used by the City to pay for costs related to the City's compliance
effort with the State's recycling mandate, AB 939. This fee has not been adjusted for next year.
(5) Uncollectible Accounts. The Agreement requires the City to pay all amounts billed by the
Utilities Department to Athens Services. As of writing this report, the Utilities Department has
already covered payment of almost $30,000 uncollected accounts. In FY 2007-2008,
uncollectible accounts cost the City $30,760. Due to the current economic condition, this amount
will likely to go over $40,000 by end of 2008-2009.
FISCAL IMPACT
Total fiscal impact across all ratepayers is expected to be a reduction of about $63,000 annually.
Residential barrel customers will save about $77,000 in upcoming year. Multifamily bin customers
will see costs increase by about $62,000 over next year. Commercial customers will see a reduction
of about $48,000 over this next fiscal year.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Liza Cawte, Administrative Technician
Attachments:
Resolution and Amendment
Rate Adjustment Calculations
Agreement Excerpts
Draft Rate Survey:
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
APPROVING THE ELEVENTH AMENDMENT TO THE EXCLUSIVE
FRANCHISE AGREEMENT WITH ARAKELIAN ENTERPRISES TO
AMEND THE SERVICE RATES AND FEES FOR THE PERIOD OF JULY
1, 2009 THROUGH JUNE 30, 2010.
WHEREAS, on October 2, 2000, the City Council of the City of Azusa, approved an
Exclusive Franchise Agreement with Arakelian Enterprises, Incorporated (Contractor), for refuse
collection and recycling services ("Original Agreement"); and
WHEREAS, Section 5 of the Original Agreement requires that service rates be modified
annually to account for cost of living changes and changes in disposal costs ("Adjustments") on July
1 of each year; and
WHEREAS, rates have been calculated pursuant to the terms and conditions of the Original
Agreement;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA,
DOES FIND AND DECLARE THAT:
SECTION 1: Adoption of Thirteenth Amendment. The attached Thirteenth Amendment
to the Exclusive Franchise Agreement Between the City of Azusa and
Arakelian Enterprises, Inc. for Refuse Collection, Recycling and Disposal
Services is hereby approved. The rate schedule adopted as part of the
Thirteenth Amendment shall supersede any rate schedule previously adopted.
SECTION 2: Effective Date. This Resolution shall become effective upon its adoption.
SECTION 3: Authorization. That the Mayor shall sign and the City Clerk shall
certify to the passage and adoption of this Resolution.
PASSED AND APPROVED on this 15th day of June 2009.
Mayor
I HEREBY CERTIFY that the foregoing resolution was duly passed by the City Council of the
City of Azusa at a regular meeting of the Utility Board/City Council thereof on the 15th day of June
2009, by the following vote of the City Council:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
City Clerk
AMENDED AND RESTATED FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND ARAKELIAN ENTERPRISES, INC.
FOR REFUSE COLLECTION, RECYCLING AND DISPOSAL SERVICES
AMENDMENT NO. 13
This Eleventh Amendment to the Exclusive Franchise Agreement is entered into
this ____ day of __ 2009 by and between the City of Azusa, a
municipal corporation ("City") and Arakelian Enterprises, Inc., a California
Corporation ("Contractor").
Effective , 2009, the attached rate schedule shall replace Exhibit A of the
Existing Exclusive Franchise Agreement approved on October 2, 2000.
IN WITNESS WHEREOF, the parties have executed this Amendment No. 13 as of
the date first set out herein.
Date:
CITY OF AZUSA
A Municipal Corporation
Joe Rocha, Mayor
ATTEST:
Vera Mendoza, City Clerk
APPROVED AS TO FORM:
Best Best & Krieger, LLP
City Attorney
Date:
ARAKELIAN ENTERPRISES, INC.
d.b.a. ATHENS SERVICES
EXHIBIT A
TO FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND ARAKELLAN ENTERPRISES, INC.
MRF entire waste stream except green waste and clean inerts
Service
Processing/
Disposal Fee
Service Franchise
Fee Fee
Monthly
AB 939 Uncollectible
Fee Accounts
Monthly Total
Rate
Single Family
$9.76
$9.46 $2.15
$0.75 $0.26
$22.38
Multifamily Bin
$7.58
$8.21 $1.76
$0.67 $0.22
$18.44
Commercial Bins
3 Cubic Yard
1 Da /Week
$36.11
$56.59 $10.30
$3.67 $0.00
$106.67
2 Days/Week
$72.22
$64.06 $15.14
$7.35 $0.00
$158.77
3 Days/Week
$108.34
$71.59 $19.99
$11.02 1 $0.00
$210.94
4 Da sM/eek
$144.45
$78.98 $24.83
$14.68 1 $0.00
$262.94
5 Days/Week
$180.56
$86.60 $29.67
$18.36 $0.00
$315.19
2 Cubic Yard
1 Da /Week
$24.07
$59.18 $9.25
$2.45 $0.00
$94.95
2 Days/Week
$48.15
$70.95 $13.23
$4.91 $0.00
$137.24
3 Days/Week
$72.22
$82.56 $17.19
$7.36 $0.00
$179.33
4 Days/Week
$96.30
$95.05 $21.26
$9.81 $0.00
$222.42
5 Days/Week
$120.37
$106.46 $25.19
$12.24 $0.00
$264.26
1.5 Cubic Yard
1 Da /Week
$18.06
$45.47 $7.06
$1.83 $0.00
$72.42
2 Days/Week
$36.11
$69.82 $11.77
$3.66 $0.00
$121.36
3 Da sWeek
$54.17
$93.53 $16.41
$5.49 $0.00
$169.60
Saturday Service
$36.11
$56.59 $10.30
$3.67 $0.00
$106.67
Locked Lid
Bin Change Out
n/a
$59.65 $6.63
n/a $0.00
$66.28
Ongoing Service
n/a
$6.63 $0.74
n/a $0.00
$7.37
Temp Bins
$8.34
$89.50 $10.87
$0.84 $0.00
$109.55
Extra Dumps
Same Da
$8.34
$36.77 $5.01
$0.84 $0.00
$50.96
Different Da
$8.34
$56.09 $7.16
$0.84 $0.00
$72.43
Commercial
Barrels
$7.58
$18.21 $2.87
$0.67 $0.00
$29.33
Roll Offs
Ton Based
$246.48 Ton Based
$7.11 $0.00
Ton Based
Updated 4/16/09
Year
Jun -Jul
2008-09
Jul - Jun
2009-2010
Jun - Jul
2006-09
Jul - Jun
2009-2010
Jun - Jul
2008-09
Apt-June
2009-2010
Jun - Jul
2008-09
Jul - Jun
2009-2010
Jun- Jul
'2009-2010
Jun - Jul
2008-09
Jun - Jul
2009-2010
2009-2010
New
New
New
New
New
Service
Processing/
Service
Service
franchise
Franchise
AS 939
AS 939
Uncollectible
Total
Total
%
$
Disposal Fee
Disposal Fee
Fee
Fee
Fee
Fee
Fee
Fee
Accounts
Rate
Rate
Change
Change
Single Family
(Trash 6 Green)
10.75
9.76
9.47
9.46
2.25.
2.15
0.75
0.75
.0.26
23.22.
22.38
-3.61%
($0.84)
Multifamily Bin
7.01
7.58
8.22
8.21
1.69
1.76
0.67
0.67
0:22
17.59
18.44
4.81%
$0.85
Commercial Bins
3 Cubic Yard
1 Day/Week
38.06
36.11
56.64
56.59
10.52
10.30
3.67
3.67
0.00
108.89
106.67
-2.04%
($2:22)
2 Days/Week
76.12
7222
64.12
64.06
15.58
15.14
7.35
7.35
0.00
163.17
158.77
-2.70%
($4.40)
3 Days/Week
114.18
108.34
71.65
71.59
20.64
19.99
11.02
11.02
0.00
217.49
210.94
-3.01%
($6:55)
4 Days/Week
152.24
144.45
79.05
78.98
25.69
24.83
14.68
14.68
0.00
271.66
262.94
-3.21%
($8.72)
5 Days/Week
190.30
180.56
86.68
86.60
30.77
29.67
18.36
18.36
0.00
326.11
315.19
-3.35%
($10.92)
2 Cubic Yard
1 Day/Week
25.37
24.07
59.23
59.18
9.40
9.25
2.45
2.45
0.00
96.45
94.95
-1.56%
($1.50)
2 Days/Week
50.75
48.15
71.01
70.95
13.53
13.23
4.91
4.91
0.00
143.00
137:24
-4.03%
($5:76)
3 Days/Week
76.12
7222
82.63
82.56
17.64
17.19
7.36
7.36
0.00
183.75
179.33
-2.41%
($4.42)
4 Days/Week
101.50
96.30
95.14
95.05
21.85
21.26
9.81
9.81
0.00
228.30
222.42
-2.58%
($5.88)
5 Days/Week
126.87
120:37
106.56
106.46
25.94
25.19
12.24
12.24
0.00
271.61
264.26
-2.71%
($7.35)
1.5 Cubic Yard
1 Day/Week
19.03
18.06
45.51
45.47
7.17
7.06
1.83
1.83
0.00
73.54
72.42
-1.52%
($1>12)
2 Days/Week
38.06
36:11
69.88
69.82
11.99
11.77
3.66
3.66
0.00
123.59
121.36
-1.80%
($2:23)
3 Days/Week
57.09
54.17
93.61
93.53
16.74
16.41
5.49
5.49
0.00
172.93
169.60
-1.93%
($3:33)
Saturday Service
38.06
36.11
56.64
56.59
10.52
10.30
3.67
3.67
0.00
108.89
106.67
-2.04%
($2.22)
Locked Lid Bin Change Out
n/a
n/a
59.70
59.65
6.63
6.63
n/a
n/a
0.00
67.21
6628
-1.39%
($0.93)
Ongoing Service
n/a
Wa
6.64
6.63
0.74
0.74
n/a
n/a
0.00
7.48
7.37
-1.51%
($0.11)
Temp Bins
8.79
8.34
89.58
89.50
10.93
1:0.87
0.84
0.84
0.00
110.14
109.55
=0.54%
($0,59)
X-Tra Dump! Same Day
8.79
8.34
36.80
36.77
5.06
- 5.01
0.84
0.84
0.00
51.49
50.96
-1.03%
($0.53)
Different Day
8.79
8.34
56.14
56.09
7.21
7.16
.0.84
0.84
:-, 0.00
72.98
72.43
-0.75%
($0.55)
Commercial Barrels
7.01
7.58
18.23
18.21
2.80
2.87
0.67
0.67
0.00
28.71
29.33
2.16%
$0.62
8011 Offs Tan Based
Ton Based
Ton Based
246.70
246.48
Ton Based
Ton Based
7.11
7.11
0.00
Ton Based
Ton Based
Ton Rased
Ton Based
MRF PROCESSING/DISPOSAL COST ADJUSTMENTS
(Effective 111/2008, Puente Hills Landfill Rate is $29.42/ton; Effective 1/11/2009, rate is $33.86/ton; Effective 1/1/2010 rate is $38.26/ton)
Agreement Section 5.0 Adjustment Procedure
33.86 25.395
MRF PER TON RATE BREAKDOWN:
1 -Apr -09
1 -Jul -09
Existing Rate
CPI`
Adj. Rate
A Processing Cost Per Ton:
$42.02
-0.09% $41.98
B Landfill Cost Per Ton:
$3336
$33.86
C MRF Portion of Landfill at 75%
$25.40
$25.40
Per Ton Rate (Total of A & C)
$67.42
$67.38
R'ESIDENTIAUCOMMERCIAL BARREL CUSTOMERS
Anticipated Tons/Costs based on Apr 08 - Mar 09:
Updated 3/25/09
Extension/
Tons
Rate
Amount
Green Waste (based on Apr 08 - Mar 09)
2,920.99
$16.50
$48;196.34
MRF (based on Apr 08 - June 08)
3,646.57
$67.42
$245,851.75
MRF (based on July 08 - Dec 08)
6,970.29
$67.38
$469,638.27
MRF (based on Jan 09 - Mar 09)
3,181.47
$70.68
$224,857.23
Required Revenue for MRF/Disposal Costs:
$988,543.58
Monthly Required Revenue:
$82,378.63
Adjusted Average Monthly Customer Count:
7,662.13
Monthly Rate for MRF Processing/Disposal
$10.75
(Credit)/Deficiency (based on Apr 08 - Mar 09 + prior bal)
($0.99)
New Monthly Rate for Jul 09 - June" 10
$9,78
RESIDENTIAL BIN CUSTOMERS
Anticipated Tons/Costs based on Apr 08 - Mar 09:
Updated 3/25/09
Extension/
Tons
Rate
Amount
MRF (based on Apr 08 - June 08)
1,980.26
$67.42
$133,509.13 #
MRF (based on July 08 - Dec 09)
4,25370
$67.38
$286,602.18 #
MRF (based on Jan 09 - Mar 09)
2;307.77
$70.68
$163,106.60 #
Required Revenue for MRF/Disposal Costs:
$583,217,91
Monthly Required Revenue:
$48,601.49
Adjusted Average Monthly Customer Count:
6,123.54
Monthly Rate for MRF Processing/Disposal
$7.94
(Credit)/Deficiency (based on Apr 08 - Mar 09 + prior bal)
($0.36)
New Monthly Rate for Jul 69 - June 10
$7,58
COMMERCIAL BIN CUSTOMERS
Anticipated Totis/Costs based on Apr 08 - Mar 09:
Updated 3/25109
Extension/
Tons
Rate
Amount
MRF (based on Apr 08 - June 08)
3,436.61
$67.42
$231,696.25 #
MRF (based on July 08 - Dec 08)
6,469.65
$67.38
$435,906.57 #
MRF (based on Jan 09 - Mar 09)
2,929.74
$70.68
$207,065.67 #
Required Revenue for MRF/Disposal Costs:
$874,668.49
Monthly Required Revenue:
$72,889.04
Average Monthly Cubic Yards of Service:
24,408
Monthly MRF Rate Per Cubic Yard of Service:
$2.99
(Credit)/Deficiency (based "on Apt 08 - Mar 09 + prior bal)
($0,21)
New Monthly Rate for Jul 09. June 10
$2,78
# Based on actual tons disposed
as reported on Monthly Disposal
Reports, from 4/08 to 3/09.
1 -Jan -10
CPI Adj. Rate
$41.98
$38.26
$28.70
$70.68
RESIDENTIAUCOMMERCIAL BARREL CUSTOMERS
(Effective Jan. 1, 2009, Puente Hills Landfill Rate `increased from $28.25/Ton to $ 33.86/'Ton)
MRF/DISPOSAL COSTS
Updated 4/16/09
MRF
Year
Barrel Tons
Rate
Cost
Total Tons Total Cost
APRIL
2008
1,241.70
62.82
78,003.59
7,673.3065
MAY
2008
1,252.69
62.82
78;693.99
MAY
JUN
2008
1,152.18
62.82
72,379.95
$85,69817
JUL
2008
1,292.98
64.08
82,854.16
32
AUG
2008
1,126.66
64.08
72,196.37
7,659.9042
SEP
2008
1,140.68
64.08
73,094.77
AUG
OCT
2008
1,138.34
64.08
72,944.83
$82,409.87
NOV
2008
1,035.71
64.08
66,368.30
31
DEC
2008
1,235.92
64.08
79,197;75
7,652.3947
JAN
2009
1,102.29
67.42
74,316.39
NOV
FEB
2009
995.89
67.42
67,142.90
$82,629.11
MAR
2009
1,083.29
67.42
73,035.41
13,798,33 $890,228.42
LANDFILL DIRECT HAUL
Year
Barrel Tons
Rate
Cost
7,676.4615
None
35
0.00
$82,767.31
$0.00
0.00 $0.00
2009
7,664.1592
Updated 4/16/09
37
7.01
$82,649.08
GREEN WASTE
Year
Green Tons
Rate
Cost
41
APRIL
2008
260.35
14.30
$3,723.01
Updated 3/25/09
MAY
2008
249.93
14.30
$3,574.00
Temporary Bin Dumps (0%)
JUN
2008'
221.62
14.30
$3,169.17
JUL
2008
299.73
14.30
$4,286.14
$297.84
AUG
2008
249.52
14.30
$3,568.14
101
SEP
2008
251.89
14.30
$3,602.03
TOTAL MRF/DISPOSAL REVENUES
OCT
2008
231.41
14.30
$3,309,16
NOV
2008
214.98'
14.30
$3,074.21
DEC
2008
197.94
14.30
$2,830.54
JAN
2009
239.91
16.50
$3,958.52
FEB
2009
204.17
16.50
$3,368.81
Average Monthly Customer Count
MAR
2009
299.54
16.50
$4,942.41
2,920.99 $43,406.12
TOTALS 16,719.32 $933,634.54
MRF/DISPOSAL REVENUES
Updated 4/16/09
Year
Res Cust Count
Rate
Com Barrel Ct
Rate
Revenue Total Revenues
APRIL
2008
7,673.3065
11.15
34
7.45
$85,810.67
MAY
2008
7,663.9393
11.15
33
7.45
$85,69817
JUN
2008
7;655.2374
1`1.15
32
7.45
$85,705.80
JUL
2008
7,659.9042
10.75
31
7.01
$82,561.28
AUG
2008
7,647.1233
10.75
29
7;01
$82,409.87
SEP
2008
7,649.7286
10.75
31
7.01
$82,451.89
OCT
2008
7,652.3947
10.75
31
7.01
$82,480.55
NOV
2008
7,665.5614
10.75
32
7.01
$82,629.11
DEC
2008
7,655.4961
10.75
34
7.01
$82,534.92
JAN
2009
7,676.4615
10.75
35
7.01
$82,767.31
FEB
2009
7,664.1592
10.75
37
7.01
$82,649.08
MAR
2009
7,672.2587
10.75
41
7.01
$82,764.19
$1,000,463.44
Updated 3/25/09
Temporary Bin Dumps (0%)
Bin Count
Rate
Revenue
Total Bins
Total Revenue
Apr 08 - Jun 08
34
8.76
$297.84
Jul 08 - Mar 09
101
8.79
$887.79
135
$1,185.63
TOTAL MRF/DISPOSAL REVENUES
$1,001,649.07
(Credit)/Deficiency for Period
($68,014.53)
(Credit)/Deficiency for Prior Adjustment
(Eff. 7-1-2008)
($23,249.55)
(Credit)/Deficiencyfor this Adjustment
($91,264.08)
Average Monthly Customer Count
7,662.13
(Credit)/Deficiency Per Customer/Month over 12 months
($0.99)
RESIDENTIAL BIN CUSTOMERS
MRF/DISPOSAL COSTS
$523,194.70
Updated 4/16/09
$29,372.19
Year
Cubic Yards
Rate
MRF
Year
Bin Tons
Rate
Cost
Total Tons
Total Cost
APR
2008
701.71
62.82
$44,081.42
6,143.6667
$45,770.32
MAY
2008
604.34
62.82
$37,964.64
$45,316.78
JUL
JUN
2008
674.21
62.82
$42,353.87
AUG
2008
JUL
2008
690.80
64.08
$44,266.46
2008
17,275
AUG
2008
670.80
64.08
$42,984.86
17,275
7.01
SEP
2008
697.43
64.08
$44,691.31
7.01
6,193.2063
OCT
2008
703.81
64.08
$45,100.14
6,134.2070
$43,000.79
NOV
2008
685.24
64.08
$43,910.18
$43,192.38
FEB
DEC
2008
805.62
64.08
$51,624.13
MAR
2009
JAN
2009
692.74
67.42
.$46,704.53
FEB
2009
865.81
67.42
$58,372.91
MAR
2009
749,22
67.42
$50,512.41
8,541.73
$552,566.88
LANDFILL DIRECT HAUL
Year
Bin Tons
Rate
Cost
None
0.00
0.00
$0.00
0.00
$0.00
GREEN WASTE
Year
Green Tons
Rate
Cost
None
0.00
0.00
$0.00
0.00
$0.00
TOTALS 8,541.73 $552,566.88
MRF/DISPOSAL REVENUES
$523,194.70
Updated 4/16/09 --Bin Cus Count are units billed that month.
$29,372.19
Year
Cubic Yards
Rate
Bin Cus Count
Revenue Total Cu. Yd. Total Revenue
APR
2008
16,802
7.45
6,142.3581
$45,760.57
MAY
2008
16,786
7.45
6,143.6667
$45,770.32
JUN
2008
16,932
7.45
6,082.7891
$45,316.78
JUL
2008
16,945
7.01
6,081.5885
$42,631.94
AUG
2008
17,257
7.01
6,092.6087
$42,709.19
SEP
2008
17,275
7.01
6,112.0821
$42,845.70
OCT
2008
17,275
7.01
6,174.1462
$43,280.76
NOV
2008
17,275
7.01
6,193.2063
$43,414.38
DEC
2008
17,275
7.01
6,134.2070
$43,000.79
JAN
2009
17,275
7.01
6,161.5375
$43,192.38
FEB
2009
17,275
7.01
6,086.5108
$42,666:44
MAR
2009
17,301
7.01
6,077.8122
$42,605.46 205,673 $523,194.70
Temporary Bin Dumps (0%) Bin Count Rate Revenue Total Bins Total Revenue
Apr 08 - Jun 08 0 8.76 $0.00
Jul 08 - Dec 08 8,79
Jan 09 - Mar 09 0 8.79 $0.00 0
$0.00
"Implemented by City June 2006
TOTALS 73,482.5132
$523,194.70
(Credit)/Deficiency for Period
$29,372.19
Special Credit for 8/3/2006
$0.00
(Credit)/Deficiency for Prior Adjustment (Eff. 7-1-2008)
($55,628.08)
(Credit)/Deficiency for this Adjustment
($26,255.89)
Average Monthly Customer Count
6,123.54
(Credit)/Deficiency Per Month/Customer (based on 12 Months)
($0.36)
COMMERCIAL BIN CUSTOMERS
MRF/DISPOSAL COSTS
Updated 4/16/09
Year
Cubic Yards
MRF
Year
Bin Tons
Rate
Cost
Total Tons
Total Cost
APRIL
2008
1,111.29
62.82
$69,811.24
$71,321.67
JUL
MAY
2008
1,275.58
62.82
$80,131.94
25,170
$73;690.43
JUN
2008
1,049.74
62.82
$65,944.67
2008
25,053
JUL
2008
1,089.96
64.08
$68,844.64
DEC
2008
AUG
2008
1,054.37
64.08
$67,564.03
$72,466.17
FEB
SEP
2008
1,083.35
64.08
$69,421.07'
24,067
$70,461.68 292,896 $856,785.15
OCT
2008
1,095.44
64.08
$70,195.80
NOV
2008
1,045.97
64.08
$67,025.76
DEC
2008
1,100.56
64:08
$70,523.88
JAN
2009
1,054.72
67.42
$71,109.22
FEB
2009
876.74
67.42
$59,109.81
MAR
2009
998.28
67.42
$67,304.04
12,836.00
$827,986.08
LANDFILL DIRECT HAUL
Year
Bin Tons
Rate
Cost
Total Tons
Total Cost
Jan. 09 Report
3.63
33.86
$122.91
3.63
$122.91
GREEN WASTE
Year
Green Tons
Rate
Cost
Total Tons
Total Cost
None
0.00
0.00
$0.00
0.00
$0.00
Temporary Bin Dumps Bin Tons Rate Bin Cost Total Tons Total Cost
Apr 1 08 to Jun 30 08 0.00 0.00 0.00
Jul 1 08 to Mar 1 09 0.00 0.00 0.00 0.00 0.00
TOTALS 12,839.63 $828,108.99
MRF/DISPOSAL REVENUES
Updated 4-16-06
Year
Cubic Yards
Revenue Total Cu. Yd. Total Revenue
APR
2008
24,427
$71,271.11
MAY
2008
24,457
$71,359.61
JUN
2008
24,444
$71,321.67
JUL
2008
24„269
$71,051.60
AUG
2006
25,170
$73;690.43
SEP
2008
25,079
$73,424.01
OCT
2008
25,053
$73,347.89
NOV
2008
24,834
$72,707.22
DEC
2008
22,093
$64,682.90 ?
JAN
2009
24,752
$72,466.17
FEB
2009
24,251
$71,000.86
MAR
2009
24,067
$70,461.68 292,896 $856,785.15
Temporary Bin Dumps (0%) Bin Count Rate Revenue Total Bin Total Revenue
Apr 08 - Jun 08 0 8.76 $0.00
Jul 08 - Mar 09 0 8:79 $0.00 0 $0.00
TOTALS $856,785.15
(Credit)/Deficiency for Period ($28,676:16)
Special Credit for 8/3/2006 $0.00
(Credit)/Deficiency Prior Adjustment Eff. 7-1-2008 ($33,718.16)
(Credit)/Deficiency This Adjustment ($62,394.32)
Total Annual Cubic Yards of Service 292,896.31
(Credit)/Deficiency Per Cubic Yard ($021)
LBS Per Cubic Yard 87.674
Commercial Bin Service
April 2009 thru March 2010
Year
2008
25.29
$632.25
2008
25.29 $682.83
27
2008
$682.83
27
2008
1.5 CY Bin
Customer Count
$202.28
4
50.57 $202.28
4
50.57
$202.28
4
3
X's Week
Apr
Rate
Revenue
May
Rate
Revenue
June
Rate
Revenue
July
1
112
18.97
$2,124.64
110
18.97
$2,086.70
108
18.97
$2,048.76
109
2
1
37.93
$37.93
1
37.93
$37.93
1
37.93
$37.93
1
3
0
56.90
$0.00
0
56.90
$0.00
0
56.90
$0.00
0
4
1
75.87
$75.87
1
75.87
$75.87
1
75.87
$75.87
1
5
0
94.84
$0.00
0
94.84
$0.00
0
94.84
$0.00
0
6
0
113.81
$0.00
0
113.81
$0.00
0
113.81
$0.00
0
2.0 CY Bin
X's Week
1
25
25.29
$632.25
27
25.29 $682.83
27
25.29
$682.83
27
2
4
50.57
$202.28
4
50.57 $202.28
4
50.57
$202.28
4
3
1
75.86
$75.86
1
75.86 $75.86
1
75.86
$75.86
1
4
0
101.15
$0.00
0
101.15 $0.00
0
101.15
$0.00
0
5
0
126.44
$0.00
0
126.44 $0.00
0
126.44
$0.00
0
6
0
151.73
$0.00
0
151.73 $0.00
0
151.73
$0.00
0
3.0 CY Bin
X's Week
1
247
37.93
$9,368.71
252
37.93 $9,558.36
255
37.93
$9,672.15
251
2
147
75.86
$11,151.42
143
75.86 $10,847.98
141
75.86
$10,696.26
143
3
144
113.79
$16,385.76
143
113.79 $16,271.97
142
113.79
$16,158.18
141
4
45
151.72
$6,827.40
47
151.72 $7,130.84
48
151.72
$7,282.56
48
5
83
189.65
$15,740.95
83
189.65 $15,740.95
83
189.65
$15,740.95
82
6
38
227.58
$8,648.04
38
227.58 $8,648.04
38
227.58
$8,648.04
37
Total
848
$71,271.11
850
$71,359.61
849
$71,321.67
845
Cary Kalscheuer Page 1 4/20/2009
Commercial Bin Service
April 2009 thru March 2010
38.06
$9,553.06
2008
38.06 $9,476,94
245
2008
76.12
$10,885.16
2008
76.12 $10,885.16
Rate
Revenue
Aug
Rate
Revenue
Sept
Rate
Revenue
Oct
Rate
19.03
$2,074.27
109
19.03
$2,074.27
111
19.03
$2,112.33
111
19.03
38.06
$38.06
1
38.06
$38.06
1
38.06
$38.06
1
38.06
57.09
$0.00
0
57.09
$0.00
0
57.09
$0.00
0
57.09
76.12
$76.12
1
76,12
$76.12
1
76.12
$76.12
1
76.12
95.15
$0.00
0
95.15
$0.00
0
95.15
$0.00
0
95.15:
114.18
$0.00
0
114.18
$0.00
0
114.18
$0.00
0
114.18
25.37
$684.99
26
25.37
$659.62
26
25.37
$659.62
26
25.37
50.75
$203.00
4
50.75
$203.00
4
50.75
$203.00
4
' 50.75
76.12
$76.12
1
76.1.2
$76.12
1
76.12
$76.12
1
76.12
101.50
$0.00
0
101.50
$0.00
0
101.50
$0.00
0
101.50
126.87
$0.00
0
126.87
$0.00
0
126.87
$0.00
0
126.87
152.24
$0.00
0
152.24
$0.00
0
152.24
$0.00
0
152.24
38.06
$9,553.06
249
38.06 $9,476,94
245
38.06 $9,324.70
76.12
$10,885.16
143
76.12 $10,885.16
141
76.12 $10,732.92
114.18
$16,099.38
103
114.18 $11,760.54
103
114.18 $11,760.54
152.24
$7,307.52
47
152.24 $7,155.28
47
152.24 $7,155.28
190.30
$15,604.60
120
190.30 $22,836.00
120
190.30 $22,836.00
228.36
$8,449.32
37
228.36 $8,449.32
37
228.36 $8,449.32
$71,051.60
841
$73,690.43
837
$73,424:01
244
38.06
146
76.12
102
114.18
48
152.24
120
190.30
35
228.36
839
Cary Kalscheuer Page 2 4/20/2009
Commercial Bin Service
April 2009 thru March 2010
$9,286.64
2008
38.06
$9,400.82
2008
38.06
$9,553.06
2009
146
76.12
Revenue
Nov
Rate
Revenue
Dec
Rate
Revenue
Jan
Rate
Revenue
$2,112.33
112
19.03
$2,131.36
ill
19.03
$2,112.33
114
19-03
$2,169.42
$38.06
1
38-06
$38.06
1
38,06
$38.06
1
38.06
$38.06
$0.00
0
57.09
$0.00
0
57.09
$0.00
0
57.09
$0.00
$76.12
1
76.12
$76.12
0
76.12
$0m
0
76.12
$0.00
$0.00
0
95.15
$0.00
0
95.15
$0.00
0
95.15
$0.00
$0.00
0
114.18
$0.00
0
114.18
$0.00
0
114.18
$0.00
$659.62
24
25.37
$608.88
25
25.37
$634.25
25
25.37
$634.25
$203.00
4
50.75
$203.00
4
50.75
$203.00
4
50.75
$203,00
$76.12
1
76.12
$76.12
1
76.12
$76.12
1
76,12
$76.12
$0.00
0
101.50
$0.00
0
101.50
$0.00
0
101.50
$0.00
$0,00
0
126,87
$0.00
0
126.87
$0.00
0
126.87
$0.00
$0.00
0
152.24
$0.00
0
152,24
$0.00
0
152.24
$0.00
$9,286.64
247
38.06
$9,400.82
261
38.06
$9,553.06
$11,113.52
146
76.12
$11,113.52
149
76.12
$11,341.88
$11,646.36
99
114.18
$11,303.82
93
114.18
$10,618.74
$7,307.52
48
152.24
$7.307.52
44
152.24
$6,698.56
$22,836,00
118
190.30
$22,455.40
81
190.30
$15,414.30
$7,992.60
35
228.36
$7.992.60
35
228.36
$7,992.60
$73,347.89
536
$72,707.22
795
$64,682.90
249
38.06
$9,476.94
147
76.12
$11,189.64
95
114,18
$10,847.10
43
152.24
$6,546.32
120
190.30
$22,836.00
37
228.36
$8;449.32
836 $72,466.17
Gary KaIscheuer Page 3 4/20/2009
Commercial Bin Service
April 2009 thru March 2010
2009
38.06
$9,210.52
2009
38.06
$9,096:34 34
141
Updated 4/16/09
$10,732.92
142
76.12
$10,809.04
95
114,18
Revenue
Customer Count
Feb
Rate
Revenue
Mar
Rate
Revenue
Total
Total
115
19.03
$2,188.45
116
19.03
$2,207.48
$25,442.34
1,338,00
1
38.06
'$38.06
1
38.06
$38.06
$456.33
12.00
D
57.09
$0.00
0
57.09
$0.00
$0.00
0:00 '00
0
76.12
$0.00
0
76.12
$0.00
$608.21
8.00
0
95.15
$0.00
0
95.15
$0.00
$0.00
0.00
0
114,18
$0.00
0
114.18
$0.00
$0.00
0.00
25
25.37
$634.25
24
25.37
$608;88
$7.782.27
307.00
4
50.75
$203.00
4
50.75
$203.00
$2,433,84
48.00
1
76.12
$76,12
1
76.12
$76.12
$912.66
12.00
0
101.50
$0.00
0
101.50
$0.00
$0.00
0.00
0
126.87
$0.00
0
126.87
$0.00
$0.00
0.00
0
152,24
$0.00
0
152.24
$10.00
$0.00
0.00
242
38.06
$9,210.52
239
38.06
$9,096:34 34
141
76,12
$10,732.92
142
76.12
$10,809.04
95
114,18
$10,847.10
96
114.18
$10,961.28
43
152.24
$6,546.32
44
152.24
$6,698.56
116
190.30
$22,074.80
112
190.30
$21,313.60
37
228.36
$8,449,,32
37
228.36
$8,449.32
820
$71,000.86
816
$70,461.68
$112,978.24
2,971.00
$131,499.42
1729.00
$154,660.77
1,356.00
$83,963.68
552.00
$235,429.55
.1,238.00
$100,617.84
441.00
$856,785.15
10,012.00
Gary Kalscheuer Page 4 4/20/2009
Commercial Bin Service
April 2009 thru March 2010
Year 2008 2008 2008
2008
2008
2008
2008
2008
2008
2009
2009
2009
217
1.5 CY Bin Cubic Yards of Service Per Month
208
2,661
2
69
69
69
69
69
69
Updated 4/16/09
X's Week Apr May June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Total
1 728 715 702
708
708
721
721
728
721
741
747
754
8,694
2 13 13 13
13
13
13
13
13
13
13
13
13
156
3 0 0 0
0
0
0
0
0
0
0
0
0
0
4 26 26 26
26
26
26
26
26
0
0
0
0
208
5 0 0 0
0
0
0
0
0
0
0
0
0
0
6 0 0 0
0
0
0
0
0
0
0
0
0
0
2.0 CY Bin
X's Week
1
217
234
234
234
225
225
225
208
217
217
217
208
2,661
2
69
69
69
69
69
69
69
69
69
69
69
69
828
3
26
26
26
26
26
26
26
26
26
26
26
26
312
4
0
0
0
0
0
0
0
0
0
0
0
0
0
5
0
0
0
0
0
0
0
0
0
0
0
0
0
6
0
0
0
0
0
0
0
0
0
0
0
0
0
3.0 CY Bin
X's Week
1
3,211
3,276
3,315
3,263
3,237
3,185
3,172
3,211
3,263
3,237
3,146
3,107
38,623
2
3,822
3,718
3,666
3,718
3,718
3,666
3,796
3,796
3,874
3,822
3,666
3,692
44,954
3
5,616
5,577
5,538
5,499
4,017
4,017
3,978
3,861
3,627
3,705
3,705
3,744
52,884
4
2,340
2,444
2,496
2,496
2,444
2,444
2,496
2,496
2,288
2,236
2,236
2,288
28,704
5
5,395
5,395
5,395
5,330
7,800
7,800
7,800
7,670
5,265
7,800
7,540
7,280
80,470
6
2,964
2,964
2,964
2,886
2,886
2,886
2,730
2,730
2,730
2,886
2,886
2,886
34,398
1
1
1
1
Total
24,427
24,457
24,444
24,269
25,170
25,079
25,053
24,834
22,093
24,752
24,251
24,067
292,892
Cary Kalscheuer Page 1 4/20/2009
Section 16. Prior- Agreements. The terms of this Agreement supersede and cancel
all prior agreements heretofore in effect between the parties concerning the subject matter hereof.
This Agreement shall operate as a discharge, of a31 future obligations of either party under any
contracts thus superseded.
Section 17. Most Favored,Nation, The City shall have the 610111t to reduce the
gate fee used to calculate processing costs if an agreement of another city that is served by the
Contractor includes a lower MRF 0 -ate rate.
Section 18. General Provisions.
A. Independent Contractor. Contractor is and shall at all times remain as to City
a wholly independent contractor. Neither City nor any of its officers, employees, servants or
agents shall have control over the conduct of Contractor or any of Contractor's officers,
employees, servants or agents. Contractor shall not at any time or in any manner represent that it
or any of its employees are in any manner employees of City.
B. No .Taint -Association. Nothing contained in this Agreement shall be deemed,
construed or represented by City or Contractor to any third person to create the relationship of
principal or agent, or of a partnership, or of ajoint venture, or other association of any kind or
nature between City and Contractor.
C. Nondiscrimination by Contractor. Contractor represents and agrees that
Contractor, its affiliates, subsidiaries, or holding, companies do not and will not discriminate
against any employee, or applicant for employment because of race, religion, color, sex,
handicap, or national origin. Such nondiscrimination shall include, but not be limited to, the
following: employment, upgrading, dernotion, transfers, recruitment, recruitment advertising
layoff, termination, rates of pay or other forms of compensation, and selection for training,
including apprenticeship.
D. Notices. Any notice required to be given under this Agreement shall be given
by placing, such notice in the United States mail, postage prepaid, addressed as follows;
In the case of the notice to Contractor.
Athens Disposal Company
14049 Valley Blvd.
City of Industry; CA 91715-0009
Attention: General Manager
28 JMW
South Pasadena
Temple City
San Gabriel
San Dimas
EI Monte
West Covina
Glendora
VCovina
Azusa-Cty Areas
Baldwin Park
Azusa (New Rate)
La Puente
Monterey Park
Sierra Madre
Placentia
La Verne
Arcadia
Monrovia
2009 Single Family Residential Rates Survey
$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00
Monthly Rate
2009 Commercial Rates Survev (3 CY/1x per Week)
Temple City
San Gabriel
West Covina
Baldwin Park
Glendora
>i., Sierra Madre
V Covina
South Pasadena
San Dimas
La Verne
Placentia
La Puente
Azusa (New Rate)
$- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 $200.00
Monthly Rate
AGENDA ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE AZUSA CITY COUNCIL
FROM: JOSEPH HSU, UTILITIES DIRECTOR !737'' �jo.)c h ;4,
VIA: F.M. DELACH, CITY MANAGER
DATE: JUNE 15, 2009
SUBJECT: RESOLUTION TO SCHEDULE PUBLIC HEARING FOR JULY 7, 2009, TO
CONSIDER EXTENSION OF THE ELECTRICAL DISTRIBUTION FRANCHISE
TO THE SOUTHERN CALIFORNIA EDISON COMPANY
RECOMMENDATION
Staff recommends that the City Council approve resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA,
DECLARING ITS INTENTION TO GRANT AN ELECTRIC FRANCHISE TO SOUTHERN
CALIFORNIA EDISON
BACKGROUND
The Los Angeles County Board of Supervisors granted a Franchise to Southern California Edison
(SCE) for a period of 50 years from and after the effective date of December 28, 1956, to erect,
construct, operate, alter, maintain and use an electric distribution and transmission system, upon,
in, under and across highways and streets in Los Angeles County. The Franchise provides that if
any highway or street comes under the supervision and control of any city or public entity, that city
or public entity shall succeed all rights reserved to the County by the Franchise. As a result, the
City of Azusa has succeeded the County with respect to the Franchise to SCE and because the
current Franchise term has lapsed, SCE has requested an extension or new grant of franchise.
SCE applied to the City for a franchise extension on December 6, 2006, and on December 18,
2006, an extension was granted with the understanding that: (1) SCE would pay the City the
franchisee fees under the expired franchise; and (2) that parties would continue to negotiate terms
and conditions of a new franchise. SCE originally sought a franchise with an indefinite term,
however, parties have negotiated changes and a proposed 30 year term is now presented to the City
Council for consideration. Since state law requires this type of franchise to be granted by an
ordinance at a duly noticed a public hearing, the first step in this process is to schedule the public
hearing.
The attached resolution has been prepared by the City Attorney's office to declare the City's intent
to grant Southern California Edison the franchise and set the date of July 7, 2009, for the public
hearing to consider the ordinance to grant SCE the franchise. Because the ordinance is a statutory
requirement that is one time in nature, the City Attorney's office has prepared the ordinance as an
"uncodified" ordinance, meaning that it will not be incorporated into specific sections of the Azusa
Municipal Code (AMC) and so the ordinance is absent any AMC code references.
The terms and conditions of the attached ordinance have been reviewed by both the City and SCE.
In general, the ordinance would continue to allow SCE to operate in Azusa much as it has done in
the past and to continue to serve some customers not served by the City's own public utility. The
franchise requires SCE to pay a 2% franchise fee on all gross receipts arising from the operation of
facilities in Azusa, except on sales of electricity within the city, which will be subject a fee of not
less than 1% of gross annual receipts.
The ordinance requires SCE to file an annual report of receipts for each calendar year. Some other
provisions include such things as an indemnity obligation for SCE; standards for making
improvements, installing and removing facilities, and making non emergency and emergency
repairs; communication procedures; a surety bond requirement; and franchise approval and
acceptance requirements.
The public hearing must be held not less than twenty (20) days and not more than sixty (60) days
after the date of the passage of the resolution and the ordinance will go through a first and second
reading before it can be formally adopted. SCE must submit written acceptance of the Franchise
within 30 days of adoption of the ordinance by the City Council for the franchise to become
effective.
FISCAL IMPACT
All costs associated with granting SCE the franchise will be paid by SCE. The fee revenues from
this franchise have averaged about $28,000 annually during the past three years.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, DECLARING ITS INTENTION
TO GRANT AN ELECTRIC FRANCHISE TO SOUTHERN
CALIFORNIA EDISON
WHEREAS, the City of Azusa has received from Southern California Edison, a
corporation organized and existing under and by virtue of the laws of the State of California,
and engaged as a public utility corporation in transmitting and distributing electricity for all
purposes to consumers in various municipalities and communities in the State of California,
including the City of Azusa, an application, under and pursuant to the provisions of Division 3,
Chapter 2 of the Public Utilities Code of the State of California, for a franchise; and
WHEREAS, Southern California Edison's application states, in compliance with the
provisions of Section 6231 of the Public Utilities Code, that the purpose for which the franchise
is sought is the installation and maintenance of facilities for transmitting and distributing
electricity for any and all purposes under, along, across or upon the public streets, ways, alleys
and places, as the same now or may hereinafter exist within the City of Azusa; and that the term
for which the franchise is sought is 30 years; and
WHEREAS, Southern California Edison's application further states that the applicant,
if granted the franchise therein applied for, will pay to the City of Azusa, during the life of such
franchise, two percent (2%) of the gross annual receipts of Southern California Edison arising
from the use, operation or possession of the franchise; provided, however, that such payment
shall in no event be less than one percent (1%) of the gross annual receipts of applicant derived
from the sale of electricity within the limits of the City of Azusa, under the franchise; and
WHEREAS, in the opinion of the City Council the public good requires that said
franchise be granted;
NOW, THEREFORE, BE IT RESOLVED that this City Council under and
pursuant to the provisions of Section 6232 of the Public Utilities Code of the State of California,
does hereby declare its intention to grant to Southern California Edison the franchise so applied
for; and the 7th day of July, 2009, at 7:30 p.m., at Azusa City Hall, located at 213 E. Foothill
Boulevard in Azusa, is hereby fixed as the day, hour and place when and where all persons
having any objection to the granting of such franchise may appear before this City Council and
be heard thereon; and,
BE IT FURTHER RESOLVED that the Clerk of this City Council is hereby directed
to publish a notice at least once within fifteen (15) days after the passage of this resolution, in a
newspaper of general circulation within the City of Azusa, in the following form:
"NOTICE OF INTENTION TO GRANT FRANCHISE
NOTICE IS HEREBY GIVEN, that Southern California
Edison, a corporation, has filed its application with the City
Council of the City of Azusa requesting that the City Council grant
it a franchise for a 30 -year term, under the Franchise Act of 1937,
to install and maintain facilities necessary or proper for
transmitting and distributing electricity for any and all lawful
purposes under, along, across, and upon the public streets as the
same now or may hereafter exist within the City of Azusa.
If the franchise is granted to it, Southern California Edison,
its successors and assigns, hereinafter designated Grantee, will,
during the franchise term, pay to the City two percent (2%) of the
gross annual receipts of the Grantee arising from the use,
operation, or possession of the franchise; provided, however, that
such payment shall in no event be less than one percent (I%) of the
gross annual receipts derived by Grantee from the sale of electricity
within Azusa. Such percentage will be paid annually from the date
of the granting of the franchise applied for, and in the event such
payment shall not be made said franchise will be forfeited.
The City Council of the City of Azusa proposes to grant the
franchise for a 30 -year term.
NOTICE IS HEREBY FURTHER GIVEN, that any and all
persons having any objections to the granting of the franchise may
appear before the City Council on the 7th day of July, 2009, at 7:30
p.m., at Azusa City Hall, located at 213 E. Foothill Boulevard in
Azusa, and be heard thereon; and
NOTICE IS HEREBY FURTHER GIVEN, that at any time
not later than the hour so set for hearing objections, any person
interested may make written protest stating objections against the
granting of the franchise, which protest must be signed by the
protestant and delivered to the City Clerk of the City, and the
Council shall at the time set for hearing such objections, proceed to
hear and pass upon all protests so made."
The City Clerk shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 15th day of June 2009.
Joseph R. Rocha, Mayor
ATTEST:
Vera Mendoza, City Clerk
APPROVED AS TO FORM:
Sonia Carvalho
Best Best & Krieger LLP
City Attorney
ORDINANCE NO.
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AZUSA, CALIFORNIA, GRANTING TO SOUTHERN
CALIFORNIA EDISON COMPANY, ITS SUCCESSORS
AND ASSIGNS, A FRANCHISE TO USE AND TO
CONSTRUCT AND USE, POLES, WIRES, CONDUITS
AND APPURTENANCES, INCLUDING
COMMUNICATION CONDUITS AND
CIRCUITSNECESSARY OR PROPER THEREFOR, IN,
ALONG, ACROSS, UPON, OVER AND UNDER THE
PUBLIC STREETS, WAYS, ALLEYS AND PLACES, AS
THEY MAY NOW OR HEREAFTER EXIST, WITHIN THE
CITY OF AZUSA.
WHEREAS, Southern California Edison Company (SCE) is a California
corporation and a public utility transmitting and distributing electricity by means of poles,
wires, conduits and appurtenances, including communication circuits, subject to the
Public Utilities Code of the State of California and the jurisdiction of the California Public
Utilities Commission (CPUC); and
WHEREAS, SCE wishes to construct, operate, maintain, upgrade, repair, replace
and use poles, wires, conduits, and appurtenances, including communication circuits,
necessary or proper therefor, in, along, across, upon, over and under the streets within the
City of Azusa, for the purpose of transmitting or distributing electricity through the City of
Azusa, and serves a limited number of retail, wholesale, resale or other electric customers
located within the City of Azusa;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES
ORDAIN AS FOLLOWS:
SECTION 1: Findings.
The City Council of the City of Azusa hereby finds and determines that the
recitals contained above are true and correct.
SECTION 2: Definitions.
Whenever in this Ordinance the words or phrases hereinafter in this section
defined are used, it is intended that they shall have the respective meanings assigned
to them in the following definitions (unless, in the given instance, the context wherein
they are used shall clearly import a different meaning):
OR AN GE W M OR R 1$\42009.20
A. The word "Grantee" shall mean the corporation to which the Franchise
contemplated in this Ordinance is granted, Southern California Edison Company,
and its lawful successors or assigns.
B. The word "City" shall mean the City of Azusa, a municipal corporation of
the State of California, in its present incorporated form or in any later
reorganized, consolidated, enlarged or reincorporated form.
C. The word "Streets" shall mean the public streets, ways, alleys and places
as the same now or may hereafter exist within the City.
D. The phrase "poles, wires, conduits and appurtenances" shall mean poles,
towers, supports, wires, conductors, cables, guys, stubs, platforms, cross arms,
braces, transformers, insulators, conduits, ducts, vaults, manholes, meters, cut-
outs, switches, appliances, attachments, appurtenances and any other property
located or to be located along, across, upon, over or under the Streets of the City
and used or useful, directly or indirectly, for the purpose of transmitting or
distributing electricity and intelligence by electrical means for all lawful purposes,
pursuant to agreements between Grantee and third parties.
E. The phrase "construct and use" shall mean to lay, construct, excavate,
encroach, erect, install, reinstall, operate, maintain, use, repair, modify, replace,
relocate, or remove any Facilities used for transmitting and distributing electricity
for all purposes within the Streets.
F. The term "Facilities" shall mean the poles, wires, conduits and
appurtenances, or any of them, of any kind installed or constructed by Grantee
as described in section (d) above.
G. The word "Franchise" shall mean and include any authorization granted
hereunder in terms of a franchise, privilege, permit, license or otherwise to
construct and use poles, wires, conduits and appurtenances, including related
communication conduits and circuits, for transmitting and distributing electricity
for any and all lawful purposes in, along, across, upon, over, and under Streets
within the City.
SECTION 3: Richt to Serve
As authorized by the California Constitution and by statute, City owns, operates
and maintains a publicly -owned electric utility. As of the adoption of this Franchise,
City's electric utility provides service to most areas and consumers within the City. In
addition to owning, operating and maintaining today or in the future Facilities that are
used to transmit and deliver electric power to end use customers located outside the
City, Grantee provides retail service to the areas of the City and customers not served
by City's own utility. City acknowledges that some of the areas it does not serve are part
2
ORANGEIAMORR IS\42009.20
of Grantee's service territory as authorized by the California Public Utilities Commission
(CPUC) and are the areas and customers that are the subject of this Franchise.
SECTION 4: Grant of Franchise.
(a) Pursuant to and in accordance with the provisions of the Franchise Act of
1937, Public Utilities Code §§6201, et seq., the City hereby grants to Grantee and its
lawful successors and assigns a Franchise to construct and use Facilities for the
purposes of transmitting and distributing electricity for any and all lawful purposes,
within the City, upon poles, wires, conduits and appurtenances, including
communication conduits and circuits, and secondary uses of excess available capacity
of Facilities as authorized by Grantee's Certificate of Public Convenience and
Necessity, tariff and/or any final decision or order of the California Public Utilities
Commission, pursuant to agreements between Grantee and third parties, necessary or
proper therefor, along, across, upon, over and under the Streets within the City of
Azusa.
The City may issue a blanket fee permit to Grantee for all work activities of
Grantee in public right -of way, in lieu of City's standard permitting process, in order to
reduce administrative costs of both City and Grantee. Such blanket fee permit shall be
in a form provided by Grantee to City, but subject to the reasonable review and approval
of City. Notwithstanding the foregoing, City shall be under no obligation whatsoever to
issue such blanket fee permit.
(b) Nothing in this Franchise in any way affects or otherwise requires Grantee
to provide, report or otherwise disclose to the City or its agents or other third parties,
any documents, maps, Facilities information, transmission/distribution systems,
generating plants, apparatus inventories, or other records that are considered
confidential, privileged, are otherwise protected or classified as "protected materials"
under Federal Energy Regulatory Commission (FERC) or CPUC Policies, or are defined
as Critical Energy Infrastructure Information (CEII) pursuant to 18 C.F.R. §
388.113(c)(1).
(c) This Franchise is granted in lieu of all other franchises owned by Grantee,
or by any successor of Grantee to any rights under this Franchise, for transmitting and
distributing electricity within the limits of the City, as said limits exist at the time of the
granting of this Franchise, and the acceptance of the Franchise hereby granted shall
operate as an abandonment of all franchises within the limits of the City of Azusa, as
such limits now or may hereafter exist, in lieu of which this Franchise is granted.
SECTION 5: Franchise Term.
This Franchise term shall be for a period of thirty (30) years from the effective
date as set forth in Section 17, provided that either parry may notify the other in writing
of a desire to reopen franchise negotiations to address changes in applicable law which
3
ORAN GEIAMORRIS412009.20
affect the franchise, and/or the invalidity or unenforceability of any material provision
hereof. Pending resolution of those negotiations, the existing ordinance shall remain in
effect for two years following the date of notice of the reopened franchise negotiations.
SECTION 6: Franchise Fee.
(a Grantee shall pay to the City the sum provided by law, which is presently
two percent (2%) of the gross annual receipts of Grantee arising from the use, operation
or possession of the Franchise; except that this payment shall not be less than one
percent (1%) of the gross annual receipts derived by Grantee from the sale of the
electricity within the City.
(b) In the event the California Legislature amends the Franchise Act of 1937
or enacts any other state law which increases the electric franchise payment to cities to
a level greater than that provided in this Section 6, the City shall have the option of
prospectively employing the new legislative formula, which shall apply for the remaining
term of the Franchise. If the City exercises this option, the new legislative formula shall
be prospectively applied hereto either (at the City's sole option) on the effective date of
the legislation, or on some date subsequent to the effective date of the legislation.
SECTION 7: Verified Statement of Gross Receipts.
(a) The Grantee shall file with the City Clerk of the City of Azusa within three
(3) months after the expiration of the calendar year, or fractional calendar year,
following the date of the granting of this Franchise, and within three (3) months after the
expiration of each calendar year thereafter, a verified statement substantially in the form
attached hereto as exhibit "B" showing in detail the following:
(1) The total gross receipts of the Grantee during the preceding
calendar year, or such fractional calendar year, from the sale of electricity within
the City;
(2) The total gross receipts of the Grantee during the preceding
calendar year, or such fractional calendar year, from the use, operation or
possession of this Franchise; and
(3) The method and supporting calculations used to calculate the
franchise fees which are payable to the City in accordance with this Franchise,
including any municipal public lands use surcharge payable pursuant to Sections
6350 et seq. of the California Public Utilities Code,
(b) The Grantee shall pay to the City within fifteen (15) days after the time for
filing said statement, in lawful money of the United States, the aforesaid percentage of
its gross receipts for the calendar year or fractional calendar year, covered by said
statement. Any neglect, omission or refusal by Grantee to file said verified statement, or
to pay said percentage at the times or in the manner herein before provided, unless
4
ORANGEAMORRIS\42009.20
promptly cured following notice, shall constitute grounds for the declaration of forfeiture
of this Franchise and of all rights of Grantee hereunder.
(c) The City Financial Officer, or any qualified person designated by the City
of Azusa, upon not less than sixty (60) days' prior written notice to Franchisee, may
make examination at the Franchisee's office or offices at any reasonable time during
regular business hours of such books and records of Franchisee, as are reasonably
necessary to verify the accuracy of Franchisee's franchise fee calculation for the prior
filing year, set forth in the annual statement required herein, subject to the following
terms and conditions:
(1) All books and records subject to examination by the City Financial
Officer, or other qualified person designated by the City of Azusa, shall be made
available within the Franchisee's office where they are maintained.
(2) Records need not be made available unless and until the City of
Azusa executes and delivers to Franchisee written confirmation that the City's
request to examine the books and records is made pursuant to its audit rights
herein and written confirmation that City of Azusa shall use the information
obtained only for purposes of the audit, shall not disclose any information it
obtains to third parties without the prior written consent of Franchisee, and that it
shall maintain the confidentiality of any information reasonably designated by the
Franchisee as confidential. Nothing herein shall be construed to require
Franchisee to make available information which constitutes private or confidential
information pertaining to specific customers of Franchisee, without the prior
written consent of the customer(s) involved.
(3) City of Azusa shall provide Franchisee with comprehensive, written
results of its audit. In the event City's audit reveals an error in the Franchise fee
amount set forth in the statement being audited, the following provisions shall
apply:
(i). If the audit determines that additional Franchise fees are due,
and if Franchisee agrees with such determination, the additional Franchise fees
shall be paid within fifteen (15) business days after City's written demand
therefor. Failure to pay such charge shall be grounds for forfeiture of the
Franchise.
(ii). If the audit determines that additional franchise fees are due,
but Franchisee disagrees with such determination, payment of the additional
Franchise fees shall be stayed pending Franchisee's appeal of the
determination to the City Council, which appeal shall be filed by Franchisee
within thirty (30) days of Franchisee's receipt, from City, of the written
determination that additional Franchise fees are due.
5
ORANGMAMORRIS\42009.20
(iii). If the audit determines that an overpayment of the Franchise
fee occurred, then City shall refund or apply funds as a credit to future franchise
fees due, the amount of the overpayment within fifteen (15) business days after
Franchisee's written demand therefor.
(4) In the event of a disagreement between the parties, each party shall have
all of the rights and remedies provided by the Franchise and by law.
SECTION 8: Publication Expenses.
The Grantee of this Franchise shall pay to the City a sum of money sufficient to
reimburse it for all publication expenses incurred by it in connection with the granting of
this Franchise, within thirty (30) days after the City shall have furnished Grantee with a
written statement of such expenses. The City Clerk shall cause this Franchise to be
published and posted within fifteen (15) days after its passage in three (3) public places
within the City as required by law.
SECTION 9: Conformity to Rules and Statutory Requirements.
The Grantee shall construct and use its Facilities in accordance and in
conformity with applicable statutory requirements and regulatory requirements of the
California Public Utilities Commission, all of the ordinances and rules adopted by the
City Council in the exercise of its police power and not in conflict with the paramount
authority of the State or the United States, and, as to state highways, subject to the laws
relating to the location and maintenance of such Facilities therein.
Grantee shall construct, install, replace and maintain its facilities in accordance
with the rules and regulations adopted by the California Public Utilities Commission,
State and Federal Laws, and as to state highways, subject to the laws relating to the
location and maintenance of such facilities. Before the work of constructing any poles,
wires, conduits, and appurtenances by the Grantee, Grantee shall file with the City
Engineer plans showing the location thereof, such construction shall be approved by the
City Engineer, which shall not be unreasonably withheld.
SECTION 10: Removal or Relocation of Facilities.
(a) The Grantee shall remove or relocate any Facilities installed, used and
maintained under the Franchise if and when made necessary by any lawful change of
grade, alignment or width of any public Street, way, alley or place, including the
construction of any subway, viaduct, pedestrian tunnel, traffic signal, street lighting
facility, or any other public works construction projects undertaken by the City and as
provided in the Public Utilities Code. Such removal or relocation shall be performed by
Grantee without expense to the City. However, Grantee shall not be required to bear the
expense of any removal or relocation made at the request of the City on behalf of or for
the benefit of, any developer or other third party. City will make good -faith efforts to
minimize the occurrence and frequency of projects requiring relocation of Facilities at
6
ORANGE\AM ORR IS\42009.20
Grantee's expense which have been relocated at Grantee's expense within the previous
seven (7) years.
(b) City shall endeavor to assist the Grantee with access and a right of entry
to private streets within gated communities located within the City and to all of Grantee's
facilities therein, but City shall have no obligation or responsibility to commence any
action in law or equity to compel any homeowners' association or other entity controlling
access to private streets within gated communities. By accepting this Franchise,
Grantee shall be deemed to have acknowledged that private streets in gated
communities that have not been dedicated or offered for dedication to the City shall not
be considered Streets for the purpose of this Franchise.
SECTION 11: Indemnification.
Grantee shall indemnify and hold harmless the City and its officers, agents and
employees from all liability for damages proximately resulting from any operations under
this Franchise, and shall be liable to the City for all damages proximately resulting from
the failure of Grantee to comply with each and every provision of this Franchise and the
Franchise Act of 1937.
SECTION 12: [RESERVED)
SECTION 13: Repairs. Excavation and Restoration.
The Grantee shall make all repairs to public property made necessary as a direct
result of the operations of the Grantee under the franchise.
In the event it is necessary to excavate a street for the purpose of maintaining,
replacing or installing Grantee's facilities, the resulting trench shall be repaired in
accordance with the rules and regulations adopted by the California Public Utilities
Commission, State and Federal Laws, and as to state highways, subject to the laws
relating to the location and maintenance of such facilities. Grantee shall also comply
with the pavement restoration standards attached hereto as Exhibit "A", which shall not
be amended except upon the mutual written agreement of the City and Grantee. The
rules and regulations adopted by the California Public Utilities Commission, State and
Federal Laws, and the requirements of Exhibit "A" shall collectively be known as the
"Pavement Standards".
If the trench repair work set forth above becomes defective meaning that such
repair work does not comply with the Pavement Standards and the failure or defect of
such repair is not due to ordinary wear and tear, City and Grantee shall utilize the
following repair protocol.
7
ORANGEIAMOR RISk12009.20
(a) Non Emergency Repairs.
City shall provide Grantee with written notice of the defect ("Notice of
Defect"). Such Notice of Defect shall include the exact location of the defect in
question. Thereafter, Grantee shall complete a commercially reasonable
temporary repair of the defect. Such temporary repair shall be completed within
five (5) days receipt of the Notice of Defect. Grantee shall then be required to
complete a permanent repair of the defect within forty-five (45) days from
Grantee's receipt of the Notice of Defect. Nothing set forth herein shall be
construed so as to prohibit Grantee from completing a permanent repair in the
time frame set forth for a temporary repair or in any way preventing the City from
extending the repair period in the reasonable exercise of its discretion, provided
that City shall have no obligation to do so.
(b) Emergency Repairs.
For the purpose of this Subsection, an "Emergency Defect" shall mean a
defect in previously repaired or restored trench consisting of a three quarters inch
(3/4") or more separation in grade of the pavement and/or a pavement crack of
any length that is three quarters inch (3/4") in width. To the extent of an
Emergency Defect, City shall provide Grantee with a Notice of Defect.
Thereafter, Grantee shall complete a commercially reasonable temporary repair
within forty-eight (48) hours from receipt of the Notice of Defect. Grantee shall
then be required to complete a permanent repair within thirty days from receipt of
the Notice of Defect. Nothing set forth herein shall be construed so as to prohibit
Grantee from completing a permanent repair in the time frame set forth for a
temporary repair or in any way preventing the City from extending the repair
period in the reasonable exercise of its discretion, provided that City shall have
no obligation to do so.
(c) Coordination/Compaction Standards.
Grantee shall coordinate its repair activities taken pursuant to this Section
with the City by providing advance notice of any excavation of, or repair to City
streets. City shall have the right to have an inspector present to monitor such
repair work and to review and approve compaction tests prior to the completion
of said work.
(d) Self Help.
If Grantee believes that it will be unable to complete necessary repairs in
the specified time periods, Grantee may request that the City meet and confer
with Grantee prior to the expiration of the applicable time period to determine the
cause for the delay. If in the City's reasonable opinion, the work could not have
been completed within the applicable time period due to unusual or unforeseen
8
ORANGMAMORRIS\42009.20
circumstances, and the work is being reasonably prosecuted towards completion,
the City may extend the repair time periods. Alternatively, if Grantee has not
completed repair work as of the expiration of the applicable time period, City shall
have right to complete the necessary repairs that would have been required of
Grantee under the applicable requirements set forth above and Grantee shall
reimburse the City for the cost of the repairs.
SECTION 14: Sale, Transfer, Assignments, Lease of Franchise
The Grantee shall file with the City within thirty (30) days after any sale, transfer,
assignment, or lease of this Franchise or any part hereof, or any of the rights or
privileges granted by this Franchise, written evidence of the transaction certified by
Grantee or its duly authorized officers. Payment of any fees due pursuant to Franchise
Fee payment provisions shall not be unreasonably withheld or delayed.
SECTION 15: Value of Franchise: Eminent Domain
(a) This Franchise shall never be given any value before any court or other
public authority in any proceeding of any character in excess of the cost to the Grantee
of the necessary publication and any other sum paid by the City at the time of
acquisition.
(b) This Franchise shall not in any way or to any extent impair of affect the
right of the City to acquire the property of Grantee installed or constructed pursuant to
this Franchise, either by purchase or through the exercise of the right of eminent
domain, and nothing in this Franchise shall be construed to contract away or to modify
or abridge the City's right of eminent domain with respect to Grantee.
SECTION 16: Noncompliance.
The City, by its City Council, may declare this Franchise forfeited, if the Grantee
fails, neglects or refuses to comply with any of the provisions or conditions of this
Franchise, and does not within thirty (30) days after written demand for compliance
begin the work of compliance, or after such beginning, does not prosecute the work with
due diligence to completion. Provided, however, that Grantee shall be afforded due
process including reasonable notice and reasonable opportunity to cure any
noncompliance prior to the commencement of any termination proceedings.
The City may sue in its own name for the forfeiture of this Franchise, in the event
of noncompliance with any of the provisions or conditions thereof by Grantee.
SECTION 17: Written Acceptance Required.
This Franchise shall become effective when Grantee files written acceptance
hereof with the City Clerk which shall be within thirty (30) days after the adoption of this
Ordinance. Such written acceptance shall constitute a continuing agreement by the
Grantee that if and when the City later annexes, or consolidates with, additional
9
ORANGEW MORR IS W 2009.20
territory, all franchises, rights and privileges owned by the Grantee therein shall be
deemed abandoned and subsumed by this Ordinance within the limits of the additional
territory.
SECTION 18: Bond.
The Grantee shall file within thirty (30) days after the date of the granting of the
Franchise and at all times during the life of this Franchise keep on file, with the City
Council a corporate surety bond running to the City, in the penal sum of Five Thousand
Dollars ($5,000.00) conditioned that the Grantee shall well and truly observe, fulfill and
perform each and every term and condition of this Franchise, and that in the case of any
breach of condition of the bond, the whole amount of the penal sum therein named shall
be recoverable from the principal and surety upon the bond. If the bond is not so filed,
or does not receive the approval of the City Council, the Franchise may be refused or
forfeited and any money paid to the City in connection therewith shall be retained by the
City. Grantee shall reinstate the bond limit or provide a replacement bond in the original
amount within 30 days after notice from the City that any amount has been recovered
from the bond.
SECTION 19: Municipal Public Lands Use Surcharge.
In addition to, and not in lieu of, payment of the franchise fee pursuant to Section
6 herein, Grantee shall collect and remit any applicable surcharge applied to electricity
transported over the Facilities, pursuant to Sections 6350 et seq. of the California Public
Utilities Code.
SECTION 20: Notices and Communications.
All notices, demands, approvals, consents, or other communications required or
desired to be given under this Ordinance shall be mailed, delivered or transmitted to the
party involved at the address indicated below:
If to Grantee:
If to City:
ORANGE\AM ORR IS\42009.20
Southern California Edison Company
Local Public Affairs
C/o Franchise Department
2244 Walnut Grove Avenue
GO 1, Quad 4C
(626) 302-4904
City Clerk
City of Azusa
P. O. Box 1395
(626) 302-6870 (fax)
Azusa, CA 91702-1395
(626) 812-5229 (626) 812-5155 (fax)
10
Each such notice, demand, approval, consent or other communication shall be
deemed effective and given (i) upon receipt, if personally delivered, (ii) upon being
transmitted, if sent by electronic form, such as email, telegram, telex or telecopy, if a
copy of the notice is also sent by United States Certified Mail and provided receipt is
confirmed by a transmission report or otherwise, (iii) two (2) business days after deposit
in the United States mail, certified and postage prepaid, properly addressed to the part
to be served or (iv) upon receipt if sent in any other way. Any part hereto may from time
to time, by written notice to the other, designate a different address than that set forth
above for the purposes of notice, provided however, that no notice of a change of
address shall be effective until actual receipt of the notice.
SECTION 21: If any section, subsection, sentence, clause, phase, or
portion of this Ordinance is for any reason held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision shall not affect the validity
of the remaining portions of this Ordinance. The City Council hereby declares that it
would have adopted this Ordinance, and each section, subsection, subdivision,
sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more
sections, subsections, subdivisions, sentences, clauses, phrases or portions might
subsequently be declared invalid or unconstitutional.
SECTION 22: This Ordinance shall become effective thirty (30) days after
its adoption.
SECTION 23: The City Clerk shall certify the adoption of this Ordinance
and shall cause the same to be posted as required by law.
PASSED, APPROVED, AND ADOPTED this _day of , 2009.
JOSEPH R. ROCHA, MAYOR
ATTEST:
VERA MENDOZA, CITY CLERK
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP, CITY ATTORNEY
11
ORANGEVAMORR IS\42009.20
Exhibit A
Pavement Restoration Standards
[Attached behind this page.]
12
ORANGE\AMORR IS\42009.20
Exhibit B
Verified Statement of Gross Receipts
[Attached behind this page.]
13
ORANGE\AMORR IS\42009.20
The California Inter -Utility
Site Restoration Committee
Site Restoration Guidelines
swilto«
. CeGfornia
A . Supra `nm-gy'��rx
4
verizo.
SOUTHERN V sf(TH`CCAL`IIFFOIj'RNN IA
.j EDISON
V N
An EDISON INTERNATIONAL' COMMny
Pacific Gas and
Efectric Company.
PACIFI " EE L
5 O S
August, 2001
Table of Contents
Sections Page No.
CALIFORNIA INTER -UTILITY SITE RESTORATION STANDARDS COMMITTEE ............................11
COMMITTEE MEMBERS..................................................................................................................11
INTRODUCTION TO THE SECOND EDITION...................................................................................I
I
PUBLIC UTILITIES USE OF STREETS & HIGHWAYS....................................................................
III
OBJECTIVES..................................................................................................................................
IV
1.0 REQUIREMENTS....................................................:................................................................1
2.0 DEFINITIONS..........................................................................................................................1
r
3.0 EXCAVATION.........................................................................................................................3
4.0 BACKFILL — GENERAL...........................................................................................................3
5.0 NARROW TRENCHES.............................................................................................................5
6.0 MECHANICALLY COMPACTED BACKFILL .......6
7.0 BACKFILL COMPACTION REQUIREMENTS ..............................
8.0 BEDDING................................................................................................................................7
9.0 BASE..................................................................................
10.0 PAVEMENT RESURFACING...................................................................................................8
FIGURE 1 - PAVEMENT RESTORATION............................................................................11
08/15/2001 California Inter -Utility Site Restoration Guideline Page II
California Inter -Utility Site Restoration Committee
Committee Members
Contact Company Phone
Steve Patino
Pacific Bell
(805) 546-7367
Chris Tran
Southern California Edison
(626) 302-2512
Rich Stockand
Pacific Gas & Electric Company
(415) 973-0500
Bruce Booking
Southern California Gas Company
(213) 244-4290
Ron Scott
San Diego Gas & Electric Company
(858) 654-8256
Bill Warren
Verizon
(909) 307-2649
Larry Copeland
Southwest Gas Corporation
(702) 364-3558
( j
INTRODUCTION TO THE SECOND EDITION
The Site Restoration Plans and associated text depicted in this guideline conforms to the
current edition of the Standard Specifications For Public Works Construction, (Greenbook).
.This guideline is coordinated and prepared by the California Inter -Utility Trench Restoration
Committee, a working subcommittee of the Inter -Utility Coordinating Committee (IUCC). The
IUCC is comprised of active members from major utilities in California (Pac Bell, .SoCal
Edison, SoCal Gas, PG&E, SDG&E, Southwest Gas Corporation, and Verizon).
This document provides the basic guideline for uniform restoration of excavations within
highways or streets in accordance with the Greenbook Standards. It is the responsibility of the
contractor or organization performing the excavation on, or adjacent to, a roadway to restore
the excavation to an as -like or better condition which is necessary to provide safe passage for
the traveling public.
This guideline is not intended to establish or create a legal standard. The criteria for site
restoration, methods and procedures are furnished solely for the purpose of information and
guidance and to make available a uniform and easy to use publication.
This guideline will be updated as required to conform with any future changes in .the Fede(al
Department of Transportation (D.O.T.) and. Greenbook publications.
08/15/2001 California Inter -Utility Site Restoration Guideline Page III
PUBLIC UTILITIES USE OF STREETS & HIGHWAYS
Pacific Bell, and Verizon, as telephone utilities, have been granted by the State the right to
use public streets. This grant, known as the state franchise is found in Section 7901 of the
California Public Utilities Code. Section 7901 provides that:
"Telegraph or telephone corporations may construct lines of telegraph or telephone lines
along and upon any public road or highway, along or across any of the waters or lands within
this State, and may erect poles, posts, piers, or abutments for supporting the insulators, wires,
and other necessary fixtures of their lines, in such manner and at such points as not to
incommode the public use of the road or highway or interrupt the navigation of the waters."
Southern California Edison, San Diego Gas & Electric and Pacific Gas & Electric
Companies, as electric utilities, have been granted by cities and counties the right to use
public streets. This grant, known as the city or county franchise is found in Section 6265 of
the California Public Utilities Code. Section 6265 provides that:
"... and every electric franchise so granted confers upon the grantee thereof the right to use,
or to construct and use, poles, wires or conduits and appurtenances for the purpose of
transmitting and distributing electricity for all purposes, under, along, across, or upon the
public streets, ways, alleys, and places as they now or hereafter exist within the municipality."
San Diego Gas & Electric, Southwest Gas Corporation and Pacific Gas & Electric
Companies, as gas utilities, have been granted by cities and counties the right to use public
streets. This grant, known as the city or county franchise is found in Section 6265 of the
California Public Utilities Code. Section 6265 provides that:
"Every gas franchise granted pursuant to this chapter confers upon the grantee the right to
use, or lay and use, gas pipes and appurtenances for the purpose of transmitting and
distributing gas, every oil franchise so granted confers upon the grantee thereof the right to
use, -or lay and use, oil pipes and appurtenances for the purpose of transmitting and
distributing oil or products thereof; every industrial gas franchise so granted confers upon the
grantee the right to use, or lay and use, industrial gas pipelines and appurtenances for the
purpose, of transmitting and distributing industrial gas;... and every electric franchise so
granted confers upon the grantee thereof the right to use, or construct and use, poles, wires or
conduits and appurtenances for the purpose of transmitting and distributing electricity for all
purposes, under, along, across, or upon the public streets, ways, alleys, and places as they
now or hereafter exist within the municipality."
Southern California Gas Company, as a gas utility, has been granted by cities and counties
the right to use public streets. This grant, known as the city or county franchise is found in
Section 6265 of the California Public Utilities Code. Section 6265 provides that:
"Every gas franchise granted pursuant to this chapter confers upon the grantee the right to
use, or lay and use, gas pipes and appurtenances for the purpose of transmitting and
distributing gas, every oil franchise so granted confers upon the grantee thereof the right to
use, or lay and use, oil pipes and appurtenances for the purpose of transmitting and
distributing oil or products thereof; every industrial gas franchise so granted confers upon the
grantee the right to use, or lay and use, industrial gas pipelines and appurtenances for the
purpose of transmitting and distributing industrial gas;
08/15/2001 California Inter -Utility Site Restoration Guideline Page IV
OBJECTIVES
The members of the Inter -Utility Coordinating Committee (IUCC) recognize their obligation to
restore all streets, lanes, and highways to the condition they were in prior to being opened
and to inspect excavation sites after the necessary repairs have been made. This guideline
has been developed to ensure that all member utilities of the Inter -Utility Coordinating
Committee have a means, as part of their operating procedures, a recognized, uniform
guideline and associated procedures for backfill, compaction and resurfacing public ways.
The guidelines are consistent with and conducive to the fundamental State policy of
ensuring uniform and efficient utility services to the public.
The public's perception of the quality of work performed by the utility industry is very
important to the California Inter -Utility Trench Restoration Committee members and
respective companies. The goal is to preserve and enhance the quality and consistency of
work performed by the industry. One step in improving workmanship and performance was the
development of the Site Restoration Guidelines,
By each company adopting and adhering to the same minimum restoration guidelines the
IUCC has accomplished this goal.
Overview:
I. The utility companies that represent the California Inter -Utility Trench Restoration
Committee have adopted and implemented the use of the Site Restoration Guideline
I� as a minimum guideline for their company. '
II. These same guidelines apply to contractors performing work for the utility companies.
III. The guideline provides the minimum restoration requirements to ensure the
performance of the restored site.
IV. The guideline provides consistency and uniformity of site restoration.
V. The guideline eliminates excessive or unnecessary pavement removal and
restoration.
VI. The guideline provides a process for inspection to ensure quality and conformance to
uniform guidelines.
VII. By adopting and adhering to these guidelines, we develop a benchmark to evaluate
performance of restorations, and to ensure that best practices are incorporated.
VIII. The guideline provides uniformity of engineered drawings.
08/15/01
Purpose
California Inter -Utility Site Restoration .Guideline Page 1 of 11
To provide guidelines for general site restoration
requirements including attainment of relative soil
compaction densities. It also provides guidelines for
restoration of road structures including pavement
resurfacing.
1.0
2.0
Requirements
Effective Date: 09-96
Last Review Date: 09-98
Last Revision Date:
Edition: 2
Current Status: 08//01
All work shall be in compliance with the State of California standards as they pertain
to utility street excavations and repairs unless modified by these guidelines.
Prior to commencing any planned excavation, the location of subsurface installations
owned and operated by utility companies, municipalities or other governmental
agencies shall be verified by calling Underground Service Alert (USA). It is
recommended to contact the owners of subsurface facilities if they are, not members
of USA. Each utility company shall contact USA at least 2 working days, but not more
than 14 calendar days, prior to commencing any non -emergency excavation. In an
emergency, each utility company should make a reasonable attempt to contact USA
and any known facility owners that may have subsurface installations in area prior to
the excavating.
For specific locating and marking requirements, refer to the USA South
(http://www.digalert.org/) or USA North (http://www.usanorth.org/) websites for surface
delineation and mark -out guidelines.
Definitions
2.1. Backfill — a material (usually that processed during the excavation operation)
used to fill. excavations. Or the process of filling excavations.
2.2. Bedding - Bedding shah be defined as that material supporting, surrounding
and extending to a minimum of six -inches (152 mm) compacted material
above the pipe or conduit. For purposes of this procedure, bedding shall
include shading.
2.3. Clay - very finely textured soil which, when moist, forms a cast which can be
handled freely without crumbling/breaking; that exhibits plasticity; and when
dried, breaks into very hard lumps (i.e., high dry strength) and is difficult to
pulverize into a soft, flour -like powder.
2.4. Cold Patch (or temporary bituminous resurfacing) - a bituminous concrete
made with slow curing asphalts and used primarily as a temporary patching
material.
2.5. Compaction - densification of suitable material and gravel that has been used
to backfill an excavation by - mechanical tamping to within a specified
08/15/01 California Inter -Utility Site Restoration Guideline Page 2 of 11
percentage of maximum dry density as determined by the modified Proctor
test in accordance with AASTHO T180 or ASTM D-1557.
2:6. Controlled Low Strength Material (CLSM) —a processed fill that does not
require compaction, and is used instead of compacted aggregates and other
materials as a backfill material.
2.7. Gravel - coarse to very coarse-grained soil ranging from approximately 0.1
inch to 3.0 inches. Gravel exhibits no plasticity.
2.8. Narrow Trench - a trench that is 6 inches (152 mm) wide (or less).
2.9. Organic Soil - soil high in organic content, usually dark (brown or black) in
color. When considerable fibrous material is the principal constituent, it is
generally classified as "peat." Plant remains or a woody structure may be
recognized and the soil usually has a distinct odor. Organic soil may exhibit
little (or a trace of) plasticity.
2.10. Plasticity - that property of soil that allows it to be deformed or molded
without crumbling (e.g., like dough or soft rubber). This property reflects the
capacity of soil to absorb moisture.
2.11. Poorly Graded - soil that contains a large percentage of its constituent
particles within a relatively narrow range; also referred to as "uniform" soil.
2.12. Sand - coarse grained soil in which the individual grains can be visually
detected. When moist it forms a cast, which will crumble when lightly
touched; when dry, it will not form a cast and will fall apart when confining
pressure is released. Sand exhibits no plasticity.
2.13. Sand Slurry — shall consist of portland cement, sand, and water (e.g., "one
sack" slung consists of one sack (94lbs.) of cement mixed with enough sand to
form one cubic yard. Water is added until desired strength and flowability is
achieved).
2.14. Silt - finely textured soil. When moist, it forms a cast, which can be freely
handled; when wet, it readily puddles; when dry, it may be cloddy and readily
pulverizes into powder with a soft flour -like feel (i.e., low dry strength). Silt
exhibits little or no plasticity.
2.15. "Standard Specification For Public Works Construction, (Greenbook)" - a
publication promulgated to provide consistent and workable standards for the
construction industry, The publication is adopted and used by hundreds of
cities, counties and other agencies.
2.16. Well Graded - soil having its constituent particles within a wide range. Also
referred to as "non-uniform" soil.
4-
08/15/01 . California Inter -Utility Site Restoration Guideline Page 3 of 11
3.0 Excavation
3.1. The surface of a roadway to be excavated for utility work shall be cut in
reasonably straight and parallel lines using a jack hammer, saw or other
accepted method to insure the least amount of damage to the roadway
surface. The pavement, including reinforcing steel on concrete roadways,
shall be cut the full depth of surfacing. The excavation shall only be between
these lines. The cutting operation shall not be done with a backhoe, gradall or
any type of ripping equipment.
4.0 Backfill — General
In keeping with waste management practices and being in conformance with
prevailing legislation, the Utilities prefer backfilling with the spoil removed from
excavation activities. However, the Utilities reserve the option to use alternate backfill
methods where job conditions or economics warrant. When this option is utilized, the
Utilities will take measures to assure, when possible, spoil removal to landfill is
avoided. Consideration will be taken to coordinate these practices with
municipalities, and agencies.
4.1. Backfill shall be considered as starting a minimum of six -inches (152 mm)
above the pipe or conduit, or at the top of concrete bedding over the pipe or
conduit. All material below this point shall be considered bedding.
4.2. All backfill shall be placed as specified in section 6.0, Mechanically
Compacted Backfill , and compaction requirements shall be in accordance
with section 7.0, Backfill Compaction Requirements .
4.3. Rocks greater than 6 inches (152 mm) in any dimension will not be permitted
in backfill placed between a minimum of six -inches above the top of any pipe
or conduit and 1 foot (305 mm) below pavement subgrade.
4.4. Rocks greater than 2-1/2 inches (64 mm) in any dimension will not be
permitted in backfill placed within 1 foot (305) mm of the pavement subgrade.
4.5. In restoring municipal streets, lanes and highways, utilities may utilize
approved native backfill material compacted to achieve soil density values
required by the "Greenbook" Standard Specifications For Public Works
Construction (latest edition).
4.6. Suitability of Backfill
The following subsections provide general guidelines and criteria to
determine whether a soil is suitable as backfill for utility excavations in
roadways. The ultimate objective is to obtain a finished road surface repair
which will undergo settlements only within acceptable performance limits as
defined within these guidelines for the functional life of the existing road.
Suitable backfill material is free of construction debris, trash, frozen soil and
other foreign material. It consists of the following:
4.6.1. Well graded gravel and sand;
08/15/01 California Inter -Utility Site Restoration Guideline Page 4 of 11
4.6.2. Poorly graded gravel and sand;
4.6.3. Gravel -sand mixtures with a small amount of silt;
4.6.4. Gravel -sand mixtures with a small amount of silt and trace amounts of
clay.
4.6.5. Unsuitable backfill materials consist of the following:
4.6.5.1. Inorganic silts and clays;
4.6.5.2. Organic silts;
4.6.5.3. Organic soils including peat, humus, topsoil, swamp
soils, mulch, and soils containing leaves, grass, branches, and
other fibrous vegetable matter.
4.7. Evaluation of Excavated Soil
4.7.1. The soil removed from an excavation shall be evaluated by
experienced personnel to determine whether or not it is suitable as
backfill material in accordance with 4.6 Suitability of Backfill.
4.7.2. An excavated soil that has been evaluated as suitable backfill material
may be reused provided its moisture content has been determined to
be "suitable" in accordance with 4.8 Field Determination of Moisture
Content.
4.7.3. An excavated soil that has been evaluated as unsuitable backfill
material shall be removed from the site and disposed of properly. New
material, which meets the requirements of 4.6 Suitability of Backfill,
shall be brought in to replace excavated soil found to be unsuitable.
4.8. Field Determination of Moisture Content
Optimum moisture content in suitable backfill soils is necessary for obtaining
required compaction.
4.8.1. Experienced personnel will conduct a field test of moisture content.
The test may be conducted using a moisture meter or, the following
"soil ball" test, or other industry approved methods.
08/15/01 California Inter -Utility Site Restoration Guideline Page 5 of 11
4.8.1.1. Take a handful of the particular soil from beneath the
surface of a stockpile that has been removed from the
excavation and then;
4.8.1.2. squeeze the sample firmly making a closed fist;
4.8.1.3. open the hand and observe the condition of the soil
ball;
4.8.1.4. if the soil ball is loose and crumbly, the soil is too dry
for compaction;
4.8.1.5. if the .soil ball drips water, the soil is too wet for
compaction;
4.8.1.6. if the soil ball holds together firmly or breaks into large
chunks, the soil has suitable moisture content for compaction.
4.8.2. -Corrective treatment will be taken when moisture content is not
suitable.
4.8.2.1. After the remedial treatment, the soil shall be tested
again to assure optimum moisture level has been achieved.
4.8.2.2. If optimum soil moisture cannot be achieved, the soil
shall be removed from the site and replaced with an
acceptable backfill material.
5.0 Narrow Trenches
5.1. When narrow trenches are backfilled using trench backfill slurry (see
definitions, 2.8) the material may be placed in a single lift, using minimum
vibration to obtain consolidation.
5.2. Precautions shall be taken to prevent the pipe or substructure from floating or
becoming displaced.
5.3. The top of the trench backfill slurry shall be placed flush with top of the
pavement when steel plates are not placed over narrow trenches.
5.4. The trench backfill slurry shall be out back to a minimum of 1 inch (25mm)
but no greater than 8 in (200mm) below the existing pavement prior to placing
permanent paving.
5.5. For trenches 6 inches (150mm) or less in width, the compacted thickness of
asphalt concrete shall be 3 inches (75mm).
5.6. Mechanically compacted backfill in narrow trenches shall be placed per
Greenbook 306-1.3.1 and 306-1.3.2, except as modified herein.
5.6.1. Backfill shall not have any rocks greater in any dimension, than 1/4 the
width of the trench.
08/15/01 California Inter -Utility Site Restoration Guideline Page 6 of 11
5.6.2. Mechanically. compacted backfill shall meet the relative compaction
requirements of Greenbook 306-1.3.6.
6.0 Mechanically Compacted Backfill
•6.1. Backfill shall be mechanically compacted by - tamping rollers, vibrating
rollers, stompers (impact -type pavement breakers), wackers, or other hand held
mechanical tampers.
6.2. Prior to mechanically compacting backfill, determine proper moisture content
of soil. Refer to 4.8 Field Determination of Moisture Content.
6.3. Material for mechanically compacted backfill shall be placed in horizontal
layers of thickness or lifts, which, prior to compaction shall not exceed the
thickness specified below for the various types of mechanical equipment used.
6.3.1. Hand -directed mechanical tampers and walk -behind vibratory plates -
. maximum uncompacted lift thickness of 4 inches (102 mm).
6.3.2. Rolling equipment, including sheepsfoot (both vibratory and (non -
vibratory), grid, smooth -wheel., (non -vibratory), pneumatic -tired and
segmented wheels - maximum uncompacted lift thickness of 1 foot
(305 mm).
6.3.3. Vibratory equipment, including vibratory plates, and smooth -wheel
rollers attached to backhoe equipment - maximum uncompacted lift
thickness of 2 feet (610 mm).
6.3.4. Impact, free -fall, or stomping equipment - maximum uncompacted lift
thickness of 3 feet (914 mm).
6.4. Mechanically compacted backfill shall be moistened or dried as specified in
4.8 to obtain optimum moisture level. Each layer shall be evenly spread and
compacted until the specified relative compaction has been attained. -
6.5. Verification of relative compaction during the backfill process will be made
with an industry acceptable compaction measuring device or method:
7.0 Backfill Compaction Requirements 2
Backfill shall be densified to the following minimum relative compaction (ref. to
Figure 1):
7.1. 85% Relative Compaction:
7.1.1. In the bedding zone.
' Section 306-1.3 Standard Specifications for Public Works Construction. (2000 edition)
- Ibid., Subsection 306-1.3.6 "
I
---- — — ------ -- -- --- -- ----I
0
08/15/01 California Inter -Utility Site Restoration Guideline Page 7 of 11
7.1.2. Outside the traveled roadway, shoulders and other paved areas.
7.1.3. Under sidewalks.
7.2. 90% Relative Compaction:
7.2.1. From the pavement surface (or finish grade if there is no pavement).
within the existing or future traveled roadway, shoulders, and other
paved areas (or areas to receive pavement).
7.2.2. Within engineered embankments.
7.2.3. Where lateral support is required for existing or proposed structures.
7.3. 95% Relative Compaction:
7.3.1. Within State Highways.
7.3.2. Where pavement is placed directly on the compacted backfill, the. top
6 inches (152mm) immediately under the pavement shall meet this
requirement. 3
7.4. All utility lines shall be properly bedded with materials and in depths as
specified by the appropriate utility prior to backfilling to obtain compaction
values of 85% modified Proctor density.
7.5. Care should be exercised when compacting near a buried facility to avoid
damage to the facility.
7.6. Compaction verification shall be performed in accordance with the following
to assure that modified Proctor density has been achieved:
7.6.1. The compaction of the lift above the bedding and the last lift shall be
verified using industry approved methods.
7.6.2. Field personnel performing backfill and compaction operations shall
be experienced in the compaction verification method used.
8.0 Bedding
8.1. Bedding shall be defined as that material supporting, surrounding and
extending to six -inches (152 mm) above the facility.
3 Ibid., Sobsection 301-1.3
08/15/01 California Inter -Utility Site Restoration Guideline Page 8 of 11
8.2. Except where otherwise specified, bedding material shall be sand, gravel,
crushed aggregate, native free -draining granular material having a sand
equivalent of not less than 20 or having a coefficient of permeability greater
than 1.4 inches/hour. a
9.0 Base
9.1. Base material shall be reconstructed to the same dimensions (thickness etc.)
and with the same type materials used in the original work.
9.2. Where the original thickness is 6 inches (152 MM) or less, the base material
may be compacted in one layer. Where the original thickness is more than 6
inches (152 mm) the base material shall be compacted in two or more lifts of
approximately equal thickness and the maximum compacted thickness of any
one layer shall not exceed 6 inches (152 mm).
9.3. The relative compaction of each layer of compacted base material shall not
be less than 95%. 5
10.0 Pavement Resurfacing
10.1. Temporary Resurfacing 5
10.1.1. Unless permanent pavement is placed immediately, temporary
- pavement shall be placed immediately after backfilling. - Temporary
bituminous resurfacing 2 inches (51 mm) thick shall be placed and
maintained wherever excavation is made through pavement or
driveways. In sidewalk areas the temporary cold patch resurfacing shall
be at least 1 inch (25 mm) thick; in all other areas it shall be at least 2
inches (51 mm) thick. At major intersections and other critical
locations, a greater thickness may be required.
10.2. Permanent Resurfacing - General
10.2,1, The Utility shall be responsible to replace all pavement disturbed by
work under the Permit with homogeneous and in-kind pavement,
unless otherwise stipulated, to the original strength and condition.
10.3. Asphalt Pavement
10.3.1. Pavement repair depths shall equal or exceed adjoining pavement
depths. When existing pavement depths are greater than 2 inches,
pavement repairs shall be made utilizing Type I, binder course in the
underlying patch courses. The wearing surface shall be a minimum
Ibid, Subsection 306-1.2.1
Ibid., Subsection 301-2.3
e Ibid., Subsection 306-1.5.1
7 Ibid., Subsection 302-5.6.2. 306-1.5 2
08/15/01 California Inter -Utility Site Restoration Guideline Page 9 of 11
1,5 inches of Type I, surface course. Pavement courses shall not
exceed two inches. All pavement courses shall be thoroughly
compacted prior to placement of subsequent courses.
10.3.2. All surface pavement damaged or removed as a result of the
excavation work shall be reconstructed to the same dimensions,
except for pavement thickness below, and with the same type material
used in the original work, resurfacing shall be 1 inch (25 mm) greater
in thickness than existing pavement. Typically not to exceed 6
inches.
10.3.3. When the pavement remaining between an excavation and the edge
of the roadway is less than two feet, the remaining area shall be
removed and replaced in conjunction with the permanent pavement
repair. Edges of the surface surrounding a patch repair must be free of
water, foreign material, or dust.'
10.3.4. The prepared edges shall be tack coated to ensure a bond between
them and the patch material. Enough time should be allowed for the
emulsion to "break" and most of the water to dry out before the patch -
mix is placed. e
10.3.5. Asphalt pavement shall be compacted to a density of 95%. To,
ensure a good surface seal along the cut (joint) line, a 4 inch (102
mm) wide band of emulsion shall be applied over the joint at the ((.
surface level, covered with a light coating of sand.
10.3.6• Upon completion the pavement shall be true to grade and cross
section. When a 10 foot (3.05 meter) straightedge is laid on the
finished surface parallel or perpendicular to the centerline of the
excavation, the surface shall not vary from. the edge of the
straightedge more than 1/8 inch (3.17 mm).
10.3.7. All leak detection holes (i.e. bar holes) shall be filled with appropriate
asphalt filler to a depth equal to the surrounding pavement depth.
10.4. Concrete Streets
10.4.1. Concrete will be reconstructed with the same type of material used in
the original work.
10.4.2. Concrete shall be placed on a subgrade sufficiently dampened to
ensure that no moisture will be absorbed from the fresh concrete.
10.4.3. Immediately after being mixed, the concrete shall be deposited on the
subgrade to the required depth over the entire width of the section.
S Asphalt in Pavement Maintenance. Asphalt Institute, MS -16, March 1983 Edition
08/15/01 California Inter -Utility Site Restoration Guideline Page 10 of 11
10.4.4. The concrete surface shall be finished true to grade and cross section,
Upon completion the surface shall be free of any unevenness greater
than 118 inch (3.17 mm) when checked with a 10 -foot (3.05 meter)
straightedge placed on the surface of the pavement. 9
10.5. Sidewalks and Driveways
10.5.1. A sidewalk area that is disturbed shall be restored in kind. Sidewalks
shall be replaced in full panels. Cold joints or monolithic
sidewalk/curb areas shall be sawcut.
10.5.2. At driveways, the sidewalk shall be 6 inches in depth.
s Ibid., Subsection 302-6.4.1
08/15/01 California Inter -Utility Site Restoration Guideline Page 11 of 11
See Note 1
Backfill
AC Pavement
(existing +1")
Exlsling AC
Pavement
Base (if existing) or top 6
inches of backfill
95% Relative Compaction
Backfill, 90%
Relative Compaction
Bedding
Utility Bedding, 85%
Relative Compaction
Figure 1 - Site Restoration with Asphalt
Concrete Pavement
Note:
1. Overall cover (depth), wiry clearances, and construction are governed by
the Calltornia Public UtAMies Commission.
Figure 1 - Pavement Restoration
CITY OF AZUSA
MINUTES OF THE CITY COUNCIL
REGULAR MEETING
MONDAY, JUNE 1, 2009 — 6:30 P.M.
The City Council of the City of Azusa met in regular session at the above date and time in the Azusa
Auditorium located at 213 E. Foothill Boulevard, Azusa, CA 91702.
CEREMONIAL Ceremonial
Mayor Pro -Tem Macias administered the Oath to Captain John Momot. Councilmember Hanks Oath to Momot,
administered the Oath to Lieutenant Mike Bertelsen. Councilmember Gonzales administered the Oath to Bertelsen &
Sergeant John Madaloni. Madaloni
Councilmember Gonzales presented Certificate of Recognition to Andrew Moronez, a student from Cert to A.
Gladstone High School, for his placing 4th in his Division to get to CIF for golf. Moronez
CLOSED SESSION Closed Sess
The City Council recessed to Closed Session at 6:45 p.m. to discuss the following: Recess
1. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Real Prop
Agency Negotiators: City Manager Delach and Assistant City Manager Makshanoff Negotiations
Under Negotiation: Price and Terms of Payment
a. Address:
830 N. Azusa Avenue, Azusa, CA 91702
830 N. Azusa
Negotiating Parties:
Donna M. Matson
b. Address:
803 N. Dalton Avenue, Azusa, CA 91762
803 N. Dalton
Negotiating Parties:
Ramirez Masonry
c Address:
809 N. Azusa
809 N. Azusa
Negotiating Parties:
CBS Outdoor (aka Viacom Outdoor)
2. CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6)
Conf w/Labor
Agency Negotiators:
City Manager Delach and Administrative Services Dir -CFO Kreimeier
Neg
Organizations
IBEW
The City Council reconvened at 7:42 p.m. City Attorney Carvalho advised that there was no reportable Reconvened
action taken in Closed Session. Reports
Mayor Rocha called the meeting to order. Call to Order
Mr. Joseph F. Hsu led in the Salute to the Flag. Flag Salute
INVOCATION was given by Pastor Samuel Martinez of Christian Faith Center of the Valley Invocation
ROLL CALL Roll Call
PRESENT: COUNCILMEM 3ERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
ABSENT: COUNCILMEMBERS: NONE
ALSO PRESENT: Also Present
City Attorney Carvalho, City Manager Delach, Assistant City Manager Makshanoff, Azusa Police Chief
Garcia, Director of Public Works/Assistant City Manager Haes, Economic Development Director
Christianson, Library Director Tovar, Administrative Services Director -Chief Financial Officer Kreimeier,
Director of Recreation and Family Services Jacobs, City Treasurer Hamilton, Director of Utilities Hsu,
Public Information Officer Quiroz, Assistant Community Development Director McNamara, City Clerk
Mendoza, Deputy City Clerk Toscano.
PUBLIC PARTICIPATION Pub Part
Mr. Mike Lee addressed Council and talked about the following subjects: success of the Memorial Day M. Lee
Program, his attendance at the Memorial Service of the wife of the Mayor Allen of West Covina, the Comments
Transportation Program and honoring the Senior Citizens, poor attendance at the Vulcan
meeting, elementary schools and their low ratings, voting in July, and asked all to pray for soldiers.
Mr. Jorge Rosales read a letter from Mr. Jim Cortez President of the Downtown Business Association, J. Rosales
stating that they will be closing their doors due to the current economic crisis and slow redevelopment. He for J. Cortez
advised that Ms. Peggy Martinez is retiring as the Downtown Business Association Executive Director and Read Letter
noted programs they have had over the years, Mariachi Festival, Miss Azusa Scholarship Pageant, Miss
Azusa Outstanding Teen Scholarship Pageant, Banner Program, and their help to the Downtown merchants.
He talked about the possibility of obtaining a non-profit status to continue with some of the programs.
Ms. Sharon Lewis, member of the Downtown Business Association, addressed Council stating that it's S. Lewis
been hard for the businesses in the area and that she continues to support the businesses. She praised the Comments
work of Peggy Martinez and expressed her appreciation for her management, loyalty, and all she has done
with Miss Azusa, Miss Outstanding Teen Scholarship Programs and the Military Banner Program. She
talked about the history of the Pageant Program.
Mr. Bruce Knoles addressed Council stating that the speed limit in the residential areas is 25 mph, he B. Knoles
displayed a sign and even though a speed trailer was put up on 11th and Orange, there are still many Comments
speeders in that area and also in the area of Victor Hodge where he has had confrontations with
speeders. He asked about radar without surveys.
Mr. Jorge Rosales addressed Council commending City Treasurer for the interest revenue generated this J. Rosales
year; he asked for the total cost of the City Yard Light Building, and questioned source of funds for Comments
payments of the Reader Board due June 1, 2009, in the amount of $99,000. He submitted a list of
questions regarding the Budget which was given to Council and staff.
Mr. Bob Morales of the San Gabriel Valley Municipal Water District, and several students of Azusa High B. Morales
School, addressed Council and audience stating that he is working closely with Azusa Light and Water to Comments
promote water conservation information. He introduced H2 Owl who was in attendance and thanked all
involved and for the water conservation projects.
Mr. Joe Hsu, Director of Utilities, addressed item C-3, expressing his appreciation for consideration of J. Hsu
naming the Water Treatment Plant in his honor, but he stated that it should be dedicated to all citizens and Comments
customers as they will be paying for it as well as enjoying the service from the plant, he requested that the
item be pulled from the Agenda.
Ms. Xilonin Cruz -Gonzalez of Save Our Canyon addressed Council requesting that there be another X. Cruz -Gonzales
Vulcan Mining EIR scoping meeting with longer comment period. Comments
City Manager Delach responded to questions stating that the scoping meeting held May 27, 2009 in the City Mgr
Council Chambers for the preparation of the EIR for Vulcan was noticed in the.newspaper, taped and is Response
being shown on cable television, and other entities were noticed about the meeting.
Economic and Community Development Director Christianson stated that although scoping meetings K. Christianson
are not required by law, there are comment forms on line or anyone who wishes to send comments can send Scoping Mtg
e-mails and this will occur throughout the preparation of the document. The law requires that the EIR be Vulcan
completed within one year and the entire application is on the City's web site, along
with everything received by Vulcan. The purpose of the ETR document is an information document only to
be provided to Planning Commission and Council to make a decision on the project. He responded to
question that the comments would be taken up until the draft EIR is released and then there will be
comments received on the draft, etc. He responded to questions from Mayor and talked about the process
and the purpose of the scoping meeting.
City Attorney Carvalho encouraged Staff to meet with Save Our Canyon organization to share information, City Attorney
and did not recommend having another scoping meeting but reiterated that people can submit comments to Comments
staff via web or in writing, etc. and that Staff share important dates regarding upcoming meetings with
Planning Commission, Council and residents so all can be informed and involved in future meetings.
06/01/09 PAGE TWO
Economic and Community Development Director Christianson advised that Vulcan has had many public Additional
meetings and that the EIR should be prepared so that the daft can be reviewed by everyone including the Comments
public etc.
In response to Mr. Knoles comments regarding speeders in front of Victor Hodge school, Chief of Police Response to
Garcia requested that Mr. Knoles try to get license numbers and the Police Department will follow up. He Mr. Knoles
talked about the issues with surveying the streets via engineering study, radar survey study and noted there
is cost and qualification involved. City Manager Delach noted it's hard to qualify without the traffic count
for a radar survey, but he would look into the matter. Discussion was held. Mayor Pro -Tem Macias
requested extra police patrol in the area, the trailer and possibly signs posted. City Manger Delach advised
that he would look into feasibility and costs of signs.
In response to Mr. Rosales questions regarding the budget, Staff would call or meet with him to discuss the Response to
matter. Director of Public Works Haes responded to question regarding Notice of Completion for Light Mr. Rosales
Building Remodel stating the cost of $145,820 was in the recommendation. With regard to the Reader
Board, City Manager Delach responded stating that the agreement is in draft form and was used as
an example of dates of the payment schedule. City Attorney Carvalho also responded stating that the
documents need to be reviewed by a bank and financed, etc, dates will change and noted the
recommendation requests that City Manager and City Attorney be authorized to finalize the documents.
Mayor Rocha asked School Board Member Xilonin Cruz -Gonzales to provide an update on funding. Rocha
She asked about a grant received for Saint Frances School and asked to set up meeting to discuss it. Comments
REPORTS, UPDATES COUNCIL BUSINESS AND ANNOUNCEMENTS -STAFF Updates/cncl
Moved by Councilmember Hanks, seconded by Councilmember Gonzales and unanimously carried to
Gladstone
approve Request for proclamation to Gladstone Elementary School in honor of its 50th Anniversary.
Elementary
Moved by Councilmember Gonzales, seconded by Mayor Pro -Tem Macias and unanimously carried to
Schoo150d'
approve request for Certificates of Recognition to Gladstone High Girls Softball Team for winning the CIF
Anniversary
Wild Card.
Moved by Mayor Pro -Tem Macias, seconded by Councilmember Hanks and unanimously to approve
Sponsorship
Gladstone
request for sponsorship in the amount of $200 to Gladstone High Student Body President, David
SBP Casarrubias
Casarrubias, and the Cheerleading Squad to attend Cheer Camp at UC Santa Barbara in August 2009.
Mayor Pro -Tem Macias acknowledged the success of the Memorial Day Ceremony at City Hall as well as
Macias
Comments
the celebration at Fairmont Cemetery. He announced that June 14th is Flag Day and urged all to display
their Flags proudly; he asked about the status of the POW Flag, that it be replaced and that a Flag pole be
considered for it in front of City Hall. He requested someone look into the feasibility of a drop off and pick
up zone for students in front of Lee School.
Councilmember Hanks invited all to attend future Memorial Day Ceremony at the Fairmont Cemetery after
Hanks
Comments
the City Ceremony as it is also very nice; he thanked all the Veterans for their participation.
Councilmember Gonzales announced the Kids Come First Golf Tournament and the AYP Barbeque this
Gonzales
Comments
weekend. He invited all to attend a workshop at Slauson School on June 10th presented by the Azusa
Police Department on the dangers of huffing and tagging.
Mayor Rocha invited all to the tree planting on Saturday at Todd and Sierra Madre; he announced the
Rocha
Comments
dedication of the Water Treatment Plant on Monday, June 8t; Flag Day, June 14th, at 3 p.m. at Veterans
Park there will be the First Annual Serviceman Recognition. He thanked Peggy Martinez for starting the
Banner Program. Discussion was held regarding pick up and drop off of students at schools which will be
discussed at a later date.
SCHEDULED ITEMS
Sched Items
CONVENE JOINTLY AS THE CITY COUNCIL, THE REDEVELOPMENT AGENCY AND THE Convene jntly
AZUSA PUBLIC FINANCING AUTHORITY TO CONSIDER THE FOLLOWING: w/APFA, CRA
FISCAL YEAR 2009/10 CITY, AZUSA PUBLIC_ FINANCING AUTHORITY, AND Budgets
REDEVELOPMENT AGENCY BUDGET ADOPTION
Administrative Services Chief Financial Officer Kreimeier presented the budget via power point A. Kreimeier
presentation which included all three entities, i.e. City, Redevelopment and Azusa Public Financing Presentation of
Authority budgets and responded to questions posed.
Budgets
Councilmembers provided comments on the success of the budget and the excellent job performed by Comments
staff. City Manager Delach responded to questions posed and thanked staff for their team effort and by Council
Council for their guidance and support.
Members
06/01/09 PAGE THREE
Moved by Councilmember Carrillo, seconded by Mayor Pro -Tem Macias and unanimously to adopt:
A RESOLUTION OF THE, CITY COUNCIL OF THE CITY OF AZUSA, ADOPTING THE BUDGET City Budget
AND APPROVING APPROPRIATIONS FOR THE CITY OF AZUSA FOR THE FISCAL YEAR Approved
COMMENCING JULY 1, 2009 AND ENDING JUNE 30, 2010. Resolution No. 09-C38.
Moved by Board Member Carrillo, seconded by Board Member Hanks and unanimously to adopt:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE AZUSA PUBLIC FINANCING APFA Budget
AUTHORITY ADOPTING THE BUDGET AND APPROVING APPROPRIATIONS FOR THE Approved
AUTHORITY FOR THE FISCAL YEAR COMMENCING JULY 1, 2009 AND ENDING JUNE 30,
2010. Resolution No. 09-P1.
Moved by Director Gonzales, seconded by Director Hanks and unanimously to adopt:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CRA Budget
CITY OF AZUSA ADOPTING THE OPERATING BUDGET AND APPROVING APPROPRIATIONS Approved
FOR THE REDEVELOPMENT AGENCY FOR THE FISCAL YEAR COMMENCING JULY 1, 2009
AND ENDING JUNE 30, 2010. Resolution No. 09-R27.
THE REDEVELOPMENT AGENCY TO RECESSED, THE AZUSA PUBLIC FINANCING CRA recessed,
AUTHORITY TO ADJOURNED, AND CITY COUNCIL CONTINUED. APFA Adjourned
PUBLIC HEARING - APPROVAL OF THE CITRUS AVENUE PEDESTRIAN CROSSWALK Pub Hrg CDBG
PROJECT AND PROPOSED CHANGE TO THE COMMUNITY DEVELOPMENT BLOCK GRANT Economic
34TH YEAR CONSOLIDATED PLAN, TO UTILIZE CDBG-R ECONOMIC RECOVERY ACT FUNDS Recovery Act
Economic and Community Development Director Christianson addressed the Hearing stating these CDBG K. Christianson
funds in the amount of $181,229 were unexpected which are Economic Recovery Act funds that can only Comments
be used for specific projects. He recommended that the funds be used for the Citrus Avenue Pedestrian
Crosswalk Project. He and the City Manager Delach thanked staff, Roseanna Jara, Senior Accountant,
Conal McNamara, Assistant Community Development Director, Tito Haes, Director of Public Works and
Carl Hassel, City Engineer for their quick action in programming the funds.
The Mayor declared the Hearing open. The City Clerk read the affidavit of proof of publication of notice Hrg Open
of said Hearing published in the San Gabriel Valley Tribune on May 25, 2009. Testimony was solicited, Testimony/none
but none was received.
Moved by Councilmember Carrillo, seconded by Councilmember Gonzales and unanimously to close the Hrg Closed
Public Hearing.
Moved by Councilmember Carrillo, seconded by Councilmember Gonzales and unanimously to approve a Project Approved
new CIP project, Citrus Avenue Pedestrian Crosswalk, for FY 2008/09; Citrus Ped Cross.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ADOPTING PROPOSED Res. 09-C39
CHANGES TO THE STATEMENT OF COMMUNITY DEVELOPMENT OBJECTIVES AND CDBG
PROJECTED USE OF FUNDS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT Funds
PROGRAM FOR FISCAL YEAR 2008-09. Resolution No. 09-C39 and
approving programming $181,229 of new CDBG-R Economic Recovery Act funds:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING Res. 09-C40
APPROPRIATION AMENDMENT FOR FISCAL YEAR 2008-09 PURSUANT TO SECTION 2-450 OF Appropriation
THE AZUSA MUNICIPAL CODE, Resolution No. 09-C40, approving the appropriation of an additional Amendment
$118,770 of City funds; and authorize staff to prepare a budget amendment and other necessary
documentation to initiate this project.
CONSIDERATION OF NAMING THE AZUSA WATER TREATMENT PLANT. Consider naming the Naming of WTP
Azusa Water Treatment Plant: "Joseph F. Hsu Water Treatment Plant" as a legacy for his 26 -years of Discussion
dedicated service to the Water customers of the City of Azusa and the Azusa Valley Water Company.
Lengthy discussion was held regarding this item. Councilmember Hanks expressed his sincere
appreciationto Mr. Hsu for his hard work and dedication to the City. He requested that Mr. Hsu reconsider
his objection to dedicating the WTP in his honor. He suggested a revision to the dedication, "The Joseph F.
Hsu, Water Treatment Plant" followed by, "dedicated to the ....... words which Mr. Hsu used earlier in the
meeting. Mr. Hsu responded, expressed his appreciation, but asked that his name be taken off the
dedication. Each Councilmember expressed their opinion regarding the issue and their appreciation
and respect for Mr. Hsu.
Moved by Mayor Pro -Tem Macias, seconded by Councilmember Gonzales and unanimously to approve Name WTP in
naming the Azusa Water Treatment Plant in honor of Joseph F. Hsu, as a legacy for his 26 -years of Honor
dedicated service to the Water customers of the City of Azusa and the Azusa Valley Water Company, as of Joseph F. Hsu
amended.
06/01/09 PAGE FOUR
The CONSENT CALENDAR consisting of Items D-1 through D-14 was approved by motion of
Consent Calendar
Councilmember Hanks, seconded by Councilmember Gonzales and unanimously carried with the exception
Approved D-3,
of items D-3, D-9, D-10, D-11, and D-14, which were considered under Special Call portion of the Agenda.
9, 10, 11, & 14
7.
Spec Call
1. The minutes of the regular meeting of May 4, 2009 and the special meeting of May 11, 2009, were
Min appvd
approved as written.
Boardwalk/Citrus
2. Human Resources Action Items were approved as follows:
HR Action Items
Merit Increase and/or Regular Appointments: S. Paragas, D. Ursua, J. Gasca, C. McNamara,
8.
and S. Willison.
Quality
Flexible Staffing Promotion: J. Retana
adopted.
New Appointment: R. Camarena, Line Mechanic.
9.
Separation: E. Sanchez, Police Corporal.
Advantage Bldrs
3. Approval was given for the surety bond exoneration request by Azusa Land Partners (ALP) for Surety Bond
Rancho Park, and converts the surety bond into a warranty bond in the amount of $40,000. Exoneration
4. The City Treasurer's Report as of April 30, 2009, was received and filed.
Treas Rpt
5. Approval was given for the issuance of a Purchase Order to Advanced Systems Services, Inc., a Pur Prime Mover
contract service that specializes in custom vehicles, in the amount not to exceed $121,219.00 to Advanced Sys
retrofit the Azusa Police Department, Office of Emergency Services "Prime Mover" utilizing
approved grant funds from the 2007 State of California Homeland Security Grant Program.
6.
Approval was given pursuant to the City of Azusa Civil Service Rules Section 3.3, to adopt revised
Revised Specs
class specifications for the Water Distribution Worker Series.
Wtr Dist Wkr
7.
Staff was authorized to award the contract for Foothill Boulevard Boardwalk and
Contract Foothill
Foothill/Citrus intersection improvements, CIP #6610913 and CIP #65309A to Martinez
Boardwalk/Citrus
Concrete, Inc. in an amount not to exceed $519,319.46.
Inter imp
8.
Resolution No. 09-C41, approving the City of Azusa Quality Assurance Program was
Quality
adopted.
Assurance Prgrm
9.
A contract was awarded to Advantage Project Builders of Azusa, California, in the amount
Advantage Bldrs
of $168,901 for construction services related to the City Hall Remodel project.
City Hall Rmdl
10.
The Notice of Completion for the Light Building Remodel, $145,820 — TSR Construction
NOC TSR Const.
and Inspection, was approved and staff was authorized to file the Notice of Completion with
Light Bldg Rmdl
the Los Angeles County Clerk.
11.
Staff was authorized to enroll the City of Azusa in the National League of Cities (NLC) Prescription
NLC Program
Discount Card Program.
12.
Resolution No. 09-C42, was adopted approving the Appropriations Limit of $52,707,754
Res. 09-C42
for the 2009/10 fiscal year.
Gann Limit
13.
Resolution No. 09-C43, was adopted finding that a severe fiscal hardship will exist to cities
Res. 09-C43
if the State of California is allowed to raid the property tax coffers to balance the State
State -Prop Tax
budget.
Hardship
14.
The following resolutions were adopted and entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ALLOWING CERTAIN Res. 09-C44 &
CLAIMS AND DEMANDS AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME 45 Warrants
ARE TO BE PAID. Resolution Nos. 09-C44 and 09-C45.
SPECIAL CALL ITEMS
D-3 Bond Exoneration for Rancho Park. Mayor Pro -Tem Macias requested that staff look into the
feasibility of putting blinders on the lighting adjacent to the homes in that area and look into the
direction of lighting at the park. Moved by Councilmember Hanks, seconded by Councilmember
Gonzales to approve.
D-9 Award of Contract - Phase II City Hall Remodel. Mayor Pro -Tem Macias thanked staff for the
much needed remodel, but asked that they consider the decor in relation to the outside of the building.
Councilmember Gonzales thanked staff for listing the bidders and considering Azusa companies.
D-10 Notice of Completion - Light Building Remodel. Mayor Pro -Tem Macias thanked staff for the
much needed remodel.
06/01/09 PAGE FIVE
Spec Call Items
Macias
Comments
Lighting Park
Macias, Gonzales
Comments
City Hall rmdl
Macias
Comments
Light Bldg rmdl
D-11. National league of Cities Prescription Discount Card Program. Mayor Rocha thanked staff for Mayor
this item and atmounced that there would be city-wide distribution points to distribute the ID cards Comments
and a staff member to serve as the principle program contact. Councilmember Carrillo stated this Prescription
is a service made possible through the National League of California Cities, a benefit for being a Discount Prgm
member. Mayor Pro -Tem Macias acknowledged that this is a great program and thanked the Mayor
for bringing it forward.
D-14 Warrants. Mayor Rocha requested clarification on Page 8, a Library book that cost $54.83, How Mayor Comment
to do your own Divorce. City Manager responded that it is a periodical as part of library information. Warrants
Moved by Mayor Pro -Tem Macias, seconded by Councilmember Gonzales and unanimously Special Call
carried to approve Consent Calendar Items D-3, D-9, D-10, D-11, and D-14. Items Appvd
THE CITY COUNCIL AND REDEVELOPMENT AGENCY CONVENED JOINTLY AT 9:45 Convene jntly
P.M. TO DISCUSS THE FOLLOWING:
CITY AND AGENCY AGENDA ITEM City/CRA Item
PROPOSED CITY AND REDEVELOPMENT AGENCY -WIDE POLICY REGARDING THE LEASING Policy re:
OF CITY AND REDEVELOPMENT AGENCY OWNED PROPERTY FOR RETAIL SALES EVENTS. Leasing property
Economic and Community Development Director Christianson addressed the item stating that based on the Discussion
direction received from Council staff is proposing a hybrid option as noted in the staff report.
Moved by Mayor Pro -Tem Macias, seconded by Councilmember Hanks and unanimously carried to Policy for
establish a policy regarding the leasing of City and Redevelopment Agency owned property for retail sales Leasing prop
events that allow entities affiliated with the City, service organizations that do not own property, and Approved
groups providing proceeds directly to projects with in the City to lease property from the City for retail
sales.
AZUSA I-210 FREEWAY READER BOARD LEASE AGREEMENT AND SIGNAGE SALES Freeway
AGREEMENT. Reader Board
Assistant City Manager Makshanoff presented draft sales and lease agreements for the signage sales Assist City Mgr
and reader board, detailed its amenities, advised that a new Azusa Logo would be incorporated; the Presentation
purchase price is $450,000 with an interest rate of 5.5%, in five annual installments of $99,885.
Advertising sales would generate $24,000 a month and lose 15% in commission for sales company that will
be hired. An agreement for advertising will be brought back for consideration. He introduced
representatives from Encore Signs and Daktronics who will be providing and installing the sign. He
responded to questions posed by Councilmembers regarding color, size, maintenance, revenues earmarked,
possible maintenance of freeway on and off ramps, master lease agreement, etc.
Moved by Mayor Pro -Tem Macias, seconded by Councilmember Gonzales and unanimously to approve the Agreements
agreements in substantially the form presented and the City Manager, with the concurrence of the City Approved
Attorney, is authorized to finalize the final documents.
THE CITY COUNCIL RECESSED AND THE REDEVELOPMENT AGENCY CONVENED. THE CRA Convene
CITY COUNCIL RECONVENED. Cncl reconvened
Moved by Councilmember Carrillo, seconded by Councilmember Hanks and unanimously carried to Adjourn
adjourn.
TIME OF ADJOURNMENT: 10:01 P.M.
CITY CLERK
NEXT RESOLUTION NO. 2009-C46.
NEXT ORDINANCE NO. 2009-03.
)6/01/09 PAGE SIX
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: KERMIT FRANCIS, INTERIM DIRECTOR OF HUMAN RESOURCES/PERSONNEL OFFICER
VIA: F.M. DELACH, CITY MANAGER
DATE: June 15, 2009
SUBJECT: HUMAN RESOURCES ACTION ITEMS
RECOMMENDATION
It is recommended that the City Council approve the following Personnel Action Requests in accordance with the
City of Azusa Civil Service Rules and applicable Memorandum of understanding(s).
BACKGROUND
On June 9, 2009, the Personnel Board confirmed the following Department Head recommendations regarding the
following Personnel Action requests.
A. MERIT INCREASE AND/OR REGULAR APPOINTMENT-.
DEPARTMENT
NAME
CLASSIFICATION"
ACTION/EFF
RANGE/STEP
Director of Library 06/30/2009
Services
FROM/TO
DATE
BASE MO SALARY
PD
Nick Covarrubias
Police Officer
Merit Increase
6101/4
HR
Shelley Ovrom
From: HR/Risk
05/23/2009
$6095.12
B. RECLASSIFICATION — The following reclassification has been requested by the department head and are
being made in accordance with the City of Azusa Rules of the Civil service wctem
DEPARTMENT
NAME
CLASSIFICATION
- - -- - - ------1
EFFECTIVE
RANGE/STEP
Director of Library 06/30/2009
Services
FROM/TO
DATE
BASE MO.
SALARY
HR
Shelley Ovrom
From: HR/Risk
07/01/2009
3306/5
Management Analyst
$6171.57
To: Senior Management
Analyst
C. SEPARATION: The following separations are submitted for informntinnnl n„rnocPs
DEPARTMENT '
NAME
CLASSIFICATION EFFECTIVE DATE'
LIB
Albert Tovar
Director of Library 06/30/2009
Services
FISCAL IMPACT
There is no fiscal impact, as positions listed are funded in approved department budgets.
or
f
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
ROBERT B. GARCIA, CHIEF OF POLICE
VIA:
F.M. DELACH, CITY MANAGERZ�AO
DATE: JUNE 15, 2009
SUBJECT: PURCHASE OF ONE USED UNMARKED SEDAN
RECOMMENDATION
It is recommended that the City Council approve the Police Department's purchase of one used,
unmarked four door sedan for our special enforcement team (S.E.T.) task force, in the amount of
$18,625.31 (inclusive of tax, title and license fees) from CARMAX located in the City of Duarte.
BACKGROUND
On February 28, 2009 one of our S.E.T. detective's surveillance vehicles was legally parked
(unoccupied) on a Rancho Cucamonga City street when a drunk driver crashed into it. The San
Bernardino County Sheriff's Office was summoned to the scene and arrested the driver for DUI.
The DUI driver was uninjured, his car suffered minor to moderate damage and an insurance
adjuster later determined the S.E.T. vehicle was, "totaled." On May 20, 2009, the City received a
reimbursement check from the DUI driver's insurance company in the amount of $18,322.33 to
replace the "totaled" car.
Under City of Azusa Municipal Code (AMC), Section 2-518 (b) — purchases of supplies and
equipment between $10,000 and $24,999, the Police Department sought to procure a
replacement vehicle utilizing authorized informal purchasing procedures. The Police Department
conducted "on-line" shopping for a used 2007 sedan (vehicle description not provided to
maintain anonymity for task force purposes) and found the advertised selling prices listed below
(not inclusive of tax, title and title costs):
1)
CARMAX
22,271 miles
$16,998
2)
Enterprise
23,192 miles
$17,523 (includes transfer fee)
3)
Longo Toyota
18,668 miles
$19,888
4)
Kelley Blue Book
23,000 mileage comparison
$18,685 (retail value)
The price listed below for the selected CARMAX sedan is the "out the door" cost (i.e., inclusive
of selling price, tax, title and license):
➢ 2007 Sedan $18,625.31
This vehicle is still under the manufacturer's 3 year/36,000 mile bumper to bumper and 4
year/50,000 mile power train (i.e. engine and transmission) warranties.
FISCAL IMPACT
The purchase of this vehicle from CARMAX in the amount of $18,625.31 is to be funded by the
following:
Reimbursement/damage, Account #10-20-310-000-4601 $18,322.33 (insurance check)
Asset Seizure Fund, Account #28-20-310-041-7135 $302.98
Prepared by:
Captain Sam Gonzalez
2
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
ROBERT B. GARCIA, CHIEF OF POLICE
VIA:
F.M. DELACH, CITY MANAGER
DATE: JUNE 15, 2009
SUBJECT: RENEWAL OF JAIL PRIVATIZATION SERVICES WITH THE WACKENHUT
CORPORATION
RECOMMENDATION
It is recommended City Council approve the renewal of the Operating Contract for the Azusa
City Jail with the Wackenhut Corporation for another five year term and authorize the city
manager to sign the attached agreement.
BACKGROUND
City Council originally approved of the privatization of Azusa's City Jail with the Wackenhut
Corporation in July 1999 in terms or a five year contract. The contract was renewed for five
years in July 2004 and is set to expire June 30, 2009. The Police Department staff is pleased with
the service of the Wackenhut Corporation and is recommending a renewal for another five year
term as specified in the attached contract. The proposed contract contains essentially the same
terms and conditions negotiated in the original contract and have been approved as to form by
the City Attorney.
Wackenhut provides the labor to operate Azusa's Jail on a year round, 24 hour a day basis.
Wackenhut's performance over the past ten years has been commendable. Wackenhut jailers
have thwarted many attempt suicides by inmates; they maintain the cleanliness of the jail facility
and are in part responsible for the successful inspections by jail oversight entities (e.g.,
California Standards Authority, Grand Jury, Juvenile Court Commissioner, L.A. County Health
and Fire Departments).
Highlights of the contract include a minimum of two custody officers on duty for each shift 24
9
hours a day, one of the custody officers being female to be in compliance with regulations
regarding female inmates, and one of the custody officers being bilingual in the Spanish
language.
FISCAL IMPACT
In the approved budget for F/Y 2009/2010, staff has budgeted $448,390 for Wackenhut's
services. Each year any increases in the contract cost is negotiated by staff and Wackenhut and is
restricted as per the terms agreed upon in the contract. It is estimated that if Azusa staffed the jail
with the equivalent number of City employed personnel, the cost would be approximately
$857,000 annually. Therefore, the contracted services results in an approximate savings of
$408,610 annually.
Prepared by:
Captain Sam Gonzalez
2
OPERATING CONTRACT
For
"Type 1" Custodial Services
Between
The City Of Azusa
And
The Wackenhut Corporation
Table of Contents
1 DEFINITIONS
2PURPOSE
1.1
Department.........................................................................1
3.1 Initial Term - Operations.............................................2
1.2
Custody Facility..................................................................1
1.3
Custody Officer...................................................................1
4.1 Representations of Operator....................................2
1.4
Operations Manual..............................................................1
1.5
City's Technical Representative........................................1
4.1.3 Compliance with Laws...........................................3
1.6
Operational Payment..........................................................1
1.7
Prisoner...............................................................................1
4.1.6 Disclosure..............................................................3
1.8
Minimum Standards............................................................1
1.9
Services Commencement Date..........................................2
5.2 Specified Duties and obligations ..............................4
2.1 Purpose..................................................................2
3 TERM OF THE AGREEMENT
3.1 Initial Term - Operations.............................................2
3.2 Subsequent Terms and Conditions...............................2
4 REPRESENTATIONS AND WARRANTIES
4.1 Representations of Operator....................................2
4.1.1 Organization and Qualification...............................2
4.1.2 Authorization..........................................................3
4.1.3 Compliance with Laws...........................................3
4.1.4 No Litigation...........................................................3
4.1.5 Taxes.....................................................................3
4.1.6 Disclosure..............................................................3
5 OPERATION OF THE CITY'S CUSTODY FACILITY
5.1 General Duties and Obligations; Standards....................4
5.2 Specified Duties and obligations ..............................4
5.3 Staffing.....................................................................4
5.4 Safety.......................................................................4
5.5 Security....................................................................4
5.6 Records....................................................................4
5.7 Uniforms...................................................................4
6 EMPLOYEES
6.1 Employee Background Investigation ..............................4
6.1.1 Employment/Qualifications/Verif.......................5
6.1.2 Education...............................................................5
6.1.3 Drugs.....................................................................5
6.1.4 Reference Check...................................................5
6.1.5 Fingerprints............................................................5
2
6.1.6 Credit Check............................................................5
6.1.7 MMPI Test................................................................5
7 ORIENTATION AND TRAINING
�76`6�O:7Td(9a
7.1 Orientation and Training..................................................5
7.1.1 Custodial Officer's Training.................................6
7.1.2 Basic First Aid..................................................6
7.1.3 Department of Justice's Criminal offender Record
Information (CORI) Training ...........................6
7.1.4 Fire and Life Safety............................................6
7.1.5 Department's Operations Manual ..........................6
8.1 Insurance........................................................................6
9 CORPORATE OBLIGATIONS
9.1 Maintenance of Corporate Existence and Business....................8
9.2 Non-Discrimination........................................................9
9.3 Technical Representative..............................................9
9.4 Access to the CITY's Custody Facility ...........................9
9.5 Performance Monitoring................................................9
10 COMPENSATION
10.1 Operational Payment...........................................................10
11 DEFAULT AND TERMINATION
11.1 Default..............................................................................10
11.2 Termination........................................................................10
11.3 Termination for Unavailability of Funds.....................................10
11.4 Negligence.........................................................................11
12 MISCELLANEOUS PROVISIONS
12.1 Binding Nature.................................................................................12
12.2 Invalidity and Severability................................................................12
12.3 Terminology and Definitions............................................................12
12.4 Arbitration........................................................................................12
12.5 Prohibition against Assignment.......................................................12
12.6 Jurisdiction..................................................................................13
12.7 Law of California..............................................................................13
12.8 Notices............................................................................................13
12.9 Entire Agreement............................................................................13
12.10 Amendment...................................................................................13
12.11 Headings.......................................................................................13
12.12 Counterparts.................................................................................13
12.13 Attorney Fees...............................................................................13
12.14 City employee liability...................................................................14
12.15 Independent Contractor.
12.16 Delay in remedy .............
13 INDEMNIFICATION AND HOLD HARMLESS
13.1 Indemnification and Hold Harmless.
...............................14
................................14
..................................14
THIS AGREEMENT for contract services (the "Agreement") is made and entered
into as of the day of , 2009, between the City
of Azusa, a municipal corporation ("CITY") and Wackenhut Corporation, a Florida
Corporation ("WACKENHUT").
RECITALS
A. Whereas the City operates a "Type 1 Facility' which will require two (2)
custody officers' 24 hours per day, 7 days per week.
B. Whereas City desires to contract it's custody service of its jail.
C. Whereas Wackenhut, a competent organization/ corporation has the
expertise to provide this service.
NOW, in consideration of the mutual premises and covenants contained herein,
the CITY and WACKENHUT hereby agree as follows:
1 DEFINITIONS
1.1 Department shall mean the City of Azusa Police Department.
1.2 Custody Facility shall mean the detention facility operated by the
Department and identified by the California Board of Corrections as a "Type
1 ", used for the confinement of persons for the defined time under the
definition of a "Type 1" facility or less pending their release, transfer or
appearance in court.
1.3 Custody Officer shall mean an employee of WACKENHUT,
responsible for the operations of the CITY's Custody Facility which includes,
but is not limited to, receiving, processing, monitoring, transporting and/or
releasing prisoners arrested by officers of the Department, and performing
other related duties as outlined in the Department's "Operations Manual".
1.4 Operations Manual shall mean the official policy and procedure
manual of the Department and any and all issued to such manual adopted
is during the term of this Agreement.
1.5 CITY'S Technical Representative shall mean the person assigned by
the Department as the official liaison between the CITY and WACKENHUT
on all matters pertaining to the operation and management of the CITY's
Custody Facility, who works for, and is paid by, the CITY.
1.6 Operational Payment shall mean the payment made by the CITY to
WACKENHUT or its designee, pursuant to Section 10, hereof, as
compensation for the operation of the Custody Facility by WACKENHUT.
G
1.7 Prisoner shall include any arrestee brought into the Custody Facility by
members of the Azusa Police Department or any arrestee authorized to
book by the Azusa Police Department.
1.8 Minimum Standards shall mean all applicable Federal and State
requirements, laws, and statutes, applicable court orders, and California
State Board of Corrections standards., whether now in effect or hereafter
effected or implemented, as applicable to the Custody Facility, except as
waived by the CITY or State. Where a conflict exists between Federal and
State requirements, laws, and statutes, applicable court orders, and
California State Board of Corrections standards, the more stringent shall
apply.
1.9 Services Commencement Date shall mean the date upon which
WACKENHUT commences the provision of operational services of the
Custody Facility, which will be at 0001 hours on July 1, 2009.
2PURPOSE
2.1 Purpose: The purpose of this Agreement is to establish the terms and
conditions under which WACKENHUT will operate and maintain the Custody
Facility.
3 TERM OF THE AGREEMENT
3.1 Initial Term - Operations: This Agreement is effective on the date set
forth in the initial paragraph of this Agreement. The initial term of this Agreement
for the operation of the Custody Facility shall be for the period commencing on
the Services Commencement Date and terminating on a date three (3) years
thereafter.
3.2 Subsequent Terms and Conditions: Following the initial three (3) year
term, and upon the acceptability of previous service, this Agreement may be
renewed by written agreement of the parties for (2) two successive one (1) year
terms. Negotiations for all such renewal terms shall begin at least ninety (90)
days prior to the then current expiration date.
The compensation put forth in section 10 of this Agreement will not increase
more than 3-5% and will be tied to the Consumer Price Index (as measured
by the Los Angeles — Riverside — Orange County CA, CPI. Both parties
must mutually agree upon the percentage of the increase to the "Bill Rate".
4 REPRESENTATIONS AND WARRANTIES
4.1 Representations of Operator: WACKENHUT represents and warrants
to and for the benefit of the CITY with the intent that the CITY will rely
thereon for purposes of entering into this Agreement, as follows:
4.1.1 Organization and Qualification: WACKENHUT has been duly
incorporated and is validly existing as a corporation in good standing under the
laws of the State of Florida with power and authority to conduct its business as
presently conducted and as proposed to be conducted pursuant to the Agreement.
4.1.2 Authorization: This Agreement has been duly authorized, executed,
and delivered by WACKENHUT and, assuming due execution and delivery
by the CITY, constitutes a legal, valid, and binding agreement enforceable
against WACKENHUT in accordance with its terms.
4.1.3 Compliance with Laws: Neither WACKENHUT nor its officers and
directors purporting to act on behalf of WACKENHUT have been advised,
and have no reason to believe, that WACKENHUT or such officers and
directors have not been conducting business in compliance with all
applicable laws, rules, and regulations of the jurisdictions in which
WACKENHUT is conducting business including all safety laws and laws
with respect to discrimination in hiring, promotion or pay of employees or
other laws affecting employees generally, except where failure to be so in
compliance would not materially and adversely affect WACKENHUT's ability
to perform it's obligations under this Agreement.
4.1.4 No Litigation: There is not now pending, or to the knowledge of
WACKENHUT, threatened, any action, suit, or proceeding to which
WACKENHUT is a party, before or by any court or government agency or
body, which might result in any material adverse change in WACKENHUT's
ability to perform its obligations under this Agreement, or any such action,
suit, or proceeding related to environmental or civil rights matters; and no
labor disturbance by the employees of WACKENHUT exists or is imminent
which might be expected to materially and adversely affect WACKENHUT's
ability to perform its obligations under this Agreement.
4.1.5 Taxes: WACKENHUT has filed all necessary federal, state and
foreign income and franchise tax returns and has paid all taxes as shown to
be due thereon, and WACKENHUT has no knowledge of any tax deficiency
which has been or might be asserted against WACKENHUT which could
materially and adversely affect WACKENHUT's ability to perform its
obligations under this Agreement.
7
4.1.6 Disclosure: There is no material fact which materially or adversely
affects or in the future will (so far as WACKENHUT can now reasonably
foresee) materially and adversely affect WACKENHUT's ability to perform
its obligations under this Agreement which has not been accurately set forth
in this Agreement or otherwise accurately disclosed in writing to the CITY
by WACKENHUT preceding the date hereof.
5 OPERATION OF THE CUSTODY FACILITY
5.1 General Duties and Obligations; Standards: WACKENHUT shall
operate the Custody Facility in compliance with all Minimum Standards and
in compliance with the Operations Manual.
5.2 Specified Duties and obligations: In addition to the duties and
responsibilities of the Custody Officers outlined in the Operations Manual,
WACKENHUT agrees to the following obligations:
5.3 Staffing: WACKENHUT agrees to staff and operate the Custody
Facility in compliance with all Minimum Standards., and in accordance with
the policies and procedures set forth in the Operations Manual, on a twenty-
four (24) hour, seven (7) day per week basis which includes holidays, with a
minimum staffing of at least two (2) Custody Officers (One (1) Male & One
(1) Female Officer Per Shift including one being bi-lingual in the Spanish
language). WACKENHUT agrees to immediately fill any vacancy arising
out of sickness, vacations and termination's, in meeting the staffing
requirements of this Agreement.
5.4 Safety: WACKENHUT shall operate the Custody Facility in compliance
with all applicable Minimum Standards relative to safety.
5.5 Security: WACKENHUT shall be responsible for providing security for all
Prisoners in accordance with all applicable Minimum Standards and the
Department's Operations Manual while they are inside the Custody Facility and
when they are being transported by WACKENHUT.
5.6 Records: WACKENHUT shall generate all Prisoner records in
accordance with established procedures outlined in the Department's
Operations Manual and Minimum Standards.
5.7 Uniforms: WACKENHUT shall provide, at WACKENHUT's expense, all
necessary uniforms and associated uniform articles of clothing agreed upon
by both parties for Wackenhut employees.
0
6 EMPLOYEES
6.1 Employee Background Investigation: A background investigation
shall be made by WACKENHUT, at WACKENHUT's sole expense, on any
applicant considered to fulfill the staffing requirements of this Agreement.
WACKENHUT shall furnish the CITY with the results of the background
investigation for review, prior to the applicant being assigned to the CITY's
Custody Facility. The CITY retains the right to approve of all Wackenhut
personnel proposed to staff the custody facility based upon the CITY's
review of the results of the background investigation.
The employee background investigation shall consist of the following:
6. 1.1 Employment/Qualifications Verification: Conduct a five (5) year
employer background check to verify Applicant has not been terminated for
other than honorable circumstances. Also verify health, education and
periods of employment.
6.1.2 Education: Conduct an education review of the Applicant to
determine completed educational level. Validate all references made to
completing "Equivalency Test" for High School level.
6.1.3 Drugs: Conduct a drug screening test to verify non -usage of drugs
upon initial hiring or there after "for cause".
6.1.4 Reference Check: Conduct a minimum of two personal reference
checks.
6.1.5 Fingerprints: Complete two California Department of Justice
fingerprint cards, and two Department fingerprint/palm print cards, furnished
by the CITY. Fingerprinting of Applicant will be performed by the CITY, with
the required Department of Justice fees paid by WACKENHUT.
6.1.6 Credit Check: Conduct a standard credit check to determine financial
responsibility. Interview all raters who have given a negative review.
6.1.7 Minnesota Multiphasic Personality Intelligence Test: Conduct a
Minnesota Multiphasic Personality & Intelligence Test (MMPI) to determine
moral integrity and mental stability.
7 ORIENTATION AND TRAINING
7.1 WACKENHUT shall perform the following training, at WACKENHUT's
expense unless otherwise stated, prior to the Custody Officer assigned to
carry out the requirements of the Agreement.
7.1.1 Custodial Officer's Training: In compliance with California Penal
Code §831, a successfully completed, 176 hour "Type 1" training class
provided by a vendor approved by the California State Board of Corrections.
In compliance with the Board of Corrections annual training requirements,
each full participation (full time) staff member shall complete 24 hours
refresher instruction during any year he/she is not participating in a core
course.
7.1.2 Basic First Aid: A successfully completed basic first aid course,
including CPR, provided by a vendor approved by the American Red Cross.
7.1.3 Department of Justices Criminal Offender Record Information
(CORI) Training: A State mandated, minimum four (4) hour class on
handling criminal offender record information. This training will be provided by
the CITY at a location agreed upon by both parties of this Agreement.
WACKENHUT shall be responsible for any of the Custody Officer's costs in
attending this training.
7.1.4 Fire and Life Safety: Pursuant to Penal Code §6030(c), successful
completion of general fire and life safety training established by the Azusa
Police Department, which is specifically related to the City's custody facility.
The Azusa Police Department will furnish this training.
7.1.5 Department's Operations Manual: An overview
of the Department's policies and procedures contained in the Department's
Operations Manual that affect the operation of the CITY's Custody Facility.
This training will be provided by the CITY at a location agreed upon by both
parties of this Agreement. WACKENHUT shall be responsible for any of the
Custody Officer's costs in attending this training.
8INSURANCE
8.1 Insurance: WACKENHUT shall procure and maintain, at its cost and for the
duration of this Agreement, comprehensive general liability and property damage
insurance, including automobile and excess liability insurance, against all claims
for injuries against persons or damages to property which may arise from or in
connection with the performance of the work hereunder by WACKENHUT, its
agents, representatives, employees, or subcontractors. If applicable,
WACKENHUT shall also carry Workers' Compensation Insurance in accordance
with State of California Workers' Compensation laws.
All of WACKENHUT's insurance, shall name the CITY, its officers, officials,
employees, agents, representatives and volunteers (collectively hereinafter "City
and City Personnel") as additional insured. WACKENHUT's naming of the CITY
and City Personnel as additional insureds on its liability policies pursuant to this
Agreement shall afford coverage only for the negligent acts or omissions of
WACKENHUT pursuant to this Agreement and shall in no event be construed for
any purposes so as to make WACKENHUT or the issuer of such policies liable for
the acts or omissions of the CITY or City Personnel. The additional insured
coverage is provided to the extent of the indemnification provision set forth in
Section 13.1 below. All of WACKENHUT's insurance (i) shall be primary insurance
and any insurance or self-insurance maintained by City or City Personnel shall be
in excess of the WACKENHUT's insurance and shall not contribute with it; (ii) shall
be "date of occurrence" rather than "claims made" insurance; (iii) shall apply
separately to each insured against whom claim is made or suit is brought, except
with respect to the limits of the insurer's liability; and (iv) shall be written by
insurance companies qualified to do business in California and rated "A-" or better
in the most recent edition of Best Rating Guide, and only if they are of a financial
category Class X or better, unless such rating qualifications are waived by the
CITY in its sole and absolute discretion.
Each insurance policy shall be endorsed to state that coverage shall not be
suspended, voided, canceled, reduced in coverage or in limits, or non -renewed,
without thirty (30) days prior written notice thereof given by the insurer to CITY by
U.S. Mail, certified, or by personal delivery.
WACKENHUT shall furnish CITY with duplicate originals of insurance certificate
and endorsements effecting coverage required by this Agreement which shall be
received and approved by CITY before work commences. The duplicate originals
and original endorsements for each insurance policy shall be signed by a person
authorized by that insurer to bind coverage on its behalf. The procuring of such
insurance or the delivery of duplicate originals and endorsements evidencing the
same shall not be construed as a limitation on WACKENHUT's obligation to
indemnify the City and City Personnel.
The amount of insurance required hereunder shall be as follows:
(i) General Liability (including premises and operations, contractual
liability, personal injury, independent contractor's liability): Five Million
Dollars ($5,000,000.00), Single Limit, per occurrence and annual
aggregate.
(ii) Automobile Liability (including owned, non -owned, and hired autos):
11
Five Million Dollars ($5,000,000.00), Single Limit, per occurrence and
annual aggregate.
(iii) Workers' Compensation and Employer's Liability: One Million Dollars
($1,000,000.00) (if WACKENHUT is required to have).
Any deductibles or self-insured retentions must be declared to and
approved by the CITY prior to the execution of this Agreement by CITY.
If WACKENHUT is required to provide Workers' Compensation Insurance,
WACKENHUT shall file with CITY the following signed certification:
'7 am aware of, and will comply with, Divisions 4 and 5 of the
California Labor Code by securing, paying for, and maintaining in full
force and effect for the duration of the contract, complete Workers'
Compensation Insurance, and shall furnish a certificate of Insurance
to CITY before execution of the Agreement."
For any Workers' Compensation and Employer's Liability Coverage, the
insurer shall agree to waive all rights of subrogation against the City and
City Personnel arising from work performed by WACKENHUT for CITY.
WACKENHUT shall require all subcontractors similarly to provide such
Workers' Compensation Insurance for their respective employees.
In the event WACKENHUT has no employees requiring WACKENHUT to
provide Workers' Compensation Insurance„ WACKENHUT shall so certify
to the CITY in writing prior to the CITY's execution of this Agreement. The
City and City Personnel shall not be responsible for any claims in law or
equity occasioned by failure of WACKENHUT to comply with this section or
with the provisions of law relating to Workers' Compensation.
9 CORPORATE OBLIGATIONS
9.1 Maintenance of Corporate Existence and Business: WACKENHUT shall, at
all times, maintain its corporate existence and authority to transact business and
good standing in its jurisdiction of incorporation and California, WACKENHUT shall
maintain all licenses (including a City of Azusa Business license), permits, and
franchises necessary for the lawful operation of its businesses where the failure to
so maintain might have a material adverse affect on WACKENHUT's ability to
perform its obligations under this Agreement.
9.2 Non -Discrimination: WACKENHUT shall at all times be in compliance with all
laws with respect to nondiscrimination in hiring, promotion or pay of employees.
No person will be subjected to discrimination on the grounds of sex, race, color,
religious or national origin and mental or physical disability. Upon request,
WACKENHUT shall show proof of such non-discrimination, and shall post in a
12
CITY shall have the right to terminate WACKENHUT's operation services
agreement without penalty. In the event WACKENHUT is notified of
unavailability of funds and/or the CITY'S inability to continue payments under
this contract, WACKENHUT shall exercise its right to terminate this
Agreement immediately upon receipt of such notice.
WACKENHUT understands and agrees that state constitutional limitations and
CITY Charter limitations preclude the CITY from incurring a financial obligation
which exceeds the amount of funds presently available for commitment to such an
obligation. Therefore, it is mutually agreed and understood that, at any time during
the term of this Agreement, funds may not be available for the payment required
under this Agreement.
The CITY does, however, agree to use its best efforts to obtain funds throughout
the term of this Agreement which funds may be committed to the obligations
contained herein. In the event such funds are not allocated by the City Council to
the payments required under this Agreement, the CITY will provide notice of its
inability to continue to make payments under this contract at such time as the
CITY becomes aware of the non -appropriation of funds. In the event of such
unavailability of funds, if the CITY exercises its right to terminate this Agreement,
the CITY shall not be responsible for damages or costs of any kind or nature
incurred by WACKENHUT as a result of such termination. Availability of funds will
be determined at the sole discretion of the CITY.
11.4 Negligence: If termination is due to the failure of WACKENHUT to fulfill its
obligations under this Agreement, CITY may take over the work and prosecute the
same to completion of the contract term, and WACKENHUT shall be liable to the
extent that the total cost for completion of the services required hereunder
exceeds the Agreement defined hereto.
Neither Wackenhut nor City shall be responsible for, or deemed in breach of
contract beyond the reasonable control and without fault or negligence of the party
experiencing such delay, including, but not limited to, acts of God, negligence of
the party experiencing such delay, including but limited to, acts of God, strikes,
war, riots, accident, fire (such causes hereinafter called "Force Majeure");
provided; however, the party experiencing the Force Majeure shall exercise due
diligence to overcome any Force Majeure to its performance and that the party
experiencing the Force Majeure shall promptly give oral notification to the other
party, and confirmed in writing within five (5) days. If performance by either party is
delayed due to Force Majeure, the time for that performance shall be extended for
a period of time reasonably necessary to overcome the effect of the delay, subject,
however, to Wackenhut's or City's right to terminate the contract in whole or in
part.
The CITY shall deduct from any amount payable to WACKENHUT (whether
arising out of this Agreement or otherwise) any amounts the payment to which
15
may be in dispute hereunder or which are necessary to compensate CITY for any
losses, costs, liabilities., or damages suffered by CITY, and all amounts for which
CITY may be liable to third parties, by reason of WACKENHUT's negligent acts,
errors, or omissions, or willful misconduct„ in performing or failing to perform
WACKENHUT's obligations under this Agreement. CITY in its sole and absolute
discretion may withhold from any payment due WACKENHUT, without liability for
interest, an amount sufficient to cover such claim or any resulting lien. The failure
of CITY to exercise such right to deduct or withhold shall not affect the obligations
of WACKENHUT to insure and indemnify CITY as elsewhere provided herein, or
act as a waiver of WACKENHUT's obligation to pay CITY any sums WACKENHUT
owes CITY.
WACKENHUT shall be notified in writing by the CITY prior to any deductions to
any amounts payable to WACKENHUT. WACKENHUT shall be given five working
days to respond to all claims made by the CITY and/or any third party.
12 MISCELLANEOUS PROVISIONS
12.1 Binding Nature: This Agreement shall not be binding upon the parties
until it is approved by the Azusa City Counsel and executed by both parties.
This Agreement, after being properly approved and executed by the parties,
shall inure to the benefit of the CITY and WACKENHUT and shall be binding
upon the CITY and WACKENHUT.
12.2 Invalidity and Severability: In the event that any provision shall be null
and void, the validity of the remaining provisions of this Agreement shall not
in any way be affected thereby.
12.3 Terminology and Definitions: All personal pronouns used in this
Agreement, whether used in the masculine, feminine, or neuter gender, shall
include all other genders; the singular shall include the plural and the plural
shall include the singular.
12.4 Arbitration: By mutual agreement, the parties may submit any matter to
binding arbitration.
12.5 Prohibition Against Assignment: By executing this Agreement,
WACKENHUT warrants that WACKENHUT has investigated and considered
how the services should be performed and understands the facilities,
difficulties, and restrictions attending performance of the services. It is
expressly understood that the experience, knowledge, capability, and
reputation of WACKENHUT's principals were a substantial inducement for
CITY to enter into this Agreement. Therefore, WACKENHUT shall not
subcontract or assign this Agreement or any portion thereof without the prior
written consent of the CITY, which CITY may give or withhold in its sole and
absolute discretion.
16
It is hereby agreed by the parties that there will be no assignment or transfer
of this Agreement or any interest in this Agreement without the written
agreement of both parties.
12.6 Jurisdiction: Any and all suits for any and every breach of this
Agreement shall be instituted and maintained in any court of competent
jurisdiction in the County of Los Angeles, State of California.
12.7 Law of California: This Agreement shall be governed by and construed
in accordance with the laws of the State of California.
12.8 Notices: Unless otherwise provided herein, all notices required to be
delivered under this Agreement or under applicable law shall be personally
delivered, or delivered by United States mail, prepaid, certified, return receipt
requested, or by reputable document delivery service that provides a receipt
showing date and time of delivery.
Notices personally delivered or delivered by a document delivery service
shall be effective upon receipt. Notices delivered by mail shall be effective at
5:00 p.m. on the second calendar day following dispatch. Notices to be
delivered to the CITY shall be directed to City of Azusa Police Department,
725 N. Alameda Avenue, Azusa, California 91702, Attn: Capt. Sam Gonzalez
and a second copy to the City Manager. Notices to be delivered to
WACKENHUT shall be sent to the address provided for WACKENHUT listed
below WACKENHUT's signature on this Agreement. Changes in the address
to be used for receipt of notices shall be effected in accordance with this
Section 12.8.
12.9 Entire Agreement: This Agreement incorporates all the agreements,
covenants, and understanding between the parties hereto, concerning the
subject matter hereof, and all such covenants, agreements and
understandings have been merged into this written Agreement. No other prior
agreement or understandings, verbal or otherwise, of the parties or their
agents shall be valid or enforceable unless embodied in this Agreement.
12.10 Amendment: No changes to this Agreement shall be made except
upon written agreement of both parties.
12.11 Headings: The headings used herein are for convenience of reference
only and shall not constitute a part hereof or effect the construction or
interpretation of this Agreement.
12.12 Counterparts: This Agreement may be executed in any number of,
and by the different parties hereto, on separate counterparts, each of which,
when so executed, shall be deemed to be an original, and such counterparts
shall together constitute but one and the same instrument.
17
12.13 Attorney Fees: If either party to this agreement is required to initiate or
defend, or is made a party to, any action or proceeding in any way connected
with this Agreement, the party prevailing in the final judgment in such action
or proceeding, in addition to any other relief which may be granted, shall be
entitled to reasonable attorney's fees. Attorney's fees shall include
reasonable costs for investigating such action, conducting discovery, and all
other necessary costs the court allows which are incurred in such litigation.
12.14 City employee liability: No officer, official, employee, agent,
representative, or volunteer of CITY shall be personally liable to
WACKENHUT, or any successor in interest, in the event of any default or
breach by the CITY, or f or any amount which may become due to
WACKENHUT or its successor, or for breach of any obligation of the terms of
this Agreement.
12.15 Independent Contractor: WACKENHUT and its representatives,
employees and agents shall perform all services required herein as an
independent contractor of CITY and shall remain at all times as to CITY a
wholly independent contractor. CITY shall not in any way or for any purpose
become or be deemed to be a partner of WACKENHUT in its business or
otherwise, or a joint venture, or a member of any joint enterprise with
WACKENHUT.
12.16 Delay In Remedy: No delay or omission in the exercise of any right or
remedy by a nondefaulting party on any default shall impair such right or
remedy or be construed as a waiver. A party's consent to or approval of any
act by the other party requiring the party's consent or approval shall not be
deemed to waive or render
unnecessary the other party's consent to or approval of any subsequent act.
Any waiver by either party of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of this
Agreement.
13 INDEMNIFICATION AND HOLD HARMLESS:
13.1 Indemnification and Hold Harmless: WACKENHUT agrees to indemnify,
defend, with reasonable legal counsel chosen by the CITY and hold harmless the
CITY and the City's elected and appointed officers, and employees against any
and all actions, suits, claims, damages liabilities„ including legal costs and
attorney's fees, whether or not suit is actually filed, and any judgment rendered
against CITY and/or City Personnel that may be asserted or claimed by any
person, firm, or entity arising out of or in connection with any claimed or actual
negligent acts or omissions in the performance of the work, operations, or activities
of WACKENHUT, its agents, employees, subcontractors, or invitees.
t�•
In witness whereof, CITY and WACKENHUT have executed this Agreement:
WACKENHUT CORPORATION
By:
Date
CITY OF AZUSA
By:
City Manager
Date:
"CITY"
CITY OF AZUSA
By:
Chief Of Police
Date:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
19
conspicuous place, available to employees and job applicants, notice of such non-
discrimination.
9.3 Technical Representative: The CITY shall appoint a Technical
Representative for the CITY's Custody Facility who shall work for and be paid by
the CITY. The CITY's Technical Representative will be the official liaison between
the CITY and WACKENHUT on all matters pertaining to the operation of the
CITY's Custody Facility under this Agreement.
9.4 Access to the CITY's Custody Facility: Access to CITY premises by
assigned Custody Officers is limited to the access necessary to fulfill the duties
described in this Agreement.
The City's Technical Representative will provide each Custody Officer a security
access card allowing entry into the CITY's police department. Access cards shall
remain the property of the CITY.
WACKENHUT shall be responsible for any lost, damaged or unreturned access
cards. Upon termination of a Custody officer, the issued access card shall be
returned to the Technical Representative within ten (10) days after termination.
City shall asses WACKENHUT Ten Dollars ($10.00) for each lost, damaged or
unreturned access card.
9.5 Performance Monitoring: WACKENHUT agrees to perform all work to the
satisfaction of CITY. The Technical Representative shall monitor the performance
of the custody officers assigned to carry out this Agreement. If WACKENHUT
services are unsatisfactory in CITY's sole and absolute discretion, the CITY
reserves the right to take appropriate action, including but not limited to: (1)
meeting with WACKENHUT to review the quality of the work and resolve matters
of concern; (2) suspending the performance for an indefinite time; (3) withholding
payment; and (4) terminating this Agreement as hereinafter set forth.
WACKENHUT and the CITY agree to work together in good faith and full
cooperation in resolving any performance deficiencies.
9.6 WACKENHUT hereby designates the following person/officer as the
representative of WACKENHUT to act on WACKENHUT's behalf:
Frank Canzoneri Vice President, Southwest Region
10 COMPENSATION
10.1 Operational Payment: The CITY shall compensate WACKENHUT for
services performed on a monthly basis for the term of the Agreement.
WACKENHUT agrees to invoice CITY by the tenth of the month for services
performed for the previous month. Each invoice shall denote the identity
13
of each Custody Officer, the dates, times and hours worked during the
affected month.
WACKENHUT agrees not to bill the City in excess of $24.87 per hour
(Account Manager), $20.37 per hour (Custody Officer 1), and $23.76 per hour
(Custody Officer 11) for each hour worked with the exception of New Years
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day, at which the rate will not exceed $34.82 per hour (Account
Manager), $28.52 per hour (Custody Officer 1) and $33.27 (Custody Officer 11)
for each hour worked, based on a twenty four (24) hour per day, seven (7)
day per week schedule. Compensation will be reviewed annually and all
increases must be agreed upon by both parties.
Note: The tuition for the training will be "Billed Direct" at a pass through cost,
and the "Type 1, Title 15" training hours will be billed at a reduced 'Training
Bill Rate". This cost is not reflected in the Bill Rate due to the variation in cost
per individual (i.e., 0, 24, or 176 hours may be needed depending on the
individuals experience/ certifications). When comparing our cost to our
competitors please keep in mind our higher "Pay Rates" drastically reduce
our "Title 15" training cost by reducing our turnover of our employees.
The aforementioned rates include the following:
Pre-employment Screening
Training
Supervision
Uniforms
Vacation
Limited Janitorial Duties
11 DEFAULT AND TERMINATION
Payroll Taxes & Insurance
General Liability Insurance
Health & Fringe Benefits
24 Hour Dispatch
401 (K)
Inventory Control
11.1 Default: Upon default of this Agreement by either party, both
WACKENHUT and the CITY retain the right to terminate the Agreement with
sixty (60) day written notice to either party by registered or certified mail.
11.2 Termination: Not withstanding anything herein to the contrary. Either
party of this Agreement may terminate the Agreement upon (90) day written
notice by registered or certified mail to the other party sent in accordance
with Section 12.8.
11.3 Termination for Unavailability of Funds: The CITY agrees to submit a
request each year to the City of Azusa City Council ("City Council")
requesting the amount of funds determined to be necessary to continue the
services hereunder for the next Fiscal Year of the then current contract term.
In the event that CITY funds for this Agreement become unavailable, the
14
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT B. GARCIA, CHIEF OF POLICE
VIA: F.M. DELACH, CITY MANAGE
DATE: JUNE 159 2009
SUBJECT: SUPPORT FOR SENATE BILL 484 BY THE CITY OF AZUSA
RECOMMENDATION
It is recommended that the City Council support Senate Bill 484 which will require a
prescription prior to the sale of products containing pseudoephedrine. Pseudoephedrine is
the key ingredient in the manufacture of methamphetamine.
BACKROUND
Currently, California has legislation that limits the packages of pseudoephedrine that may
be sold, requires the showing of identification, and requires that pseudoephedrine must be
kept behind the counter. Although these measures were successful for a time in tamping
down the diversion of pseudoephedrine into meth production, sophisticated smurfing
operations can now easily evade California law. Narcotics enforcement officers estimate
that a sophisticated smurfing operation can purchase enough pseudoephedrine in one day
to manufacture over $ 20,000 worth of meth.
In contrast to California's failing system (it is estimated that over 90% of the
pseudoephedrine used to cook meth in California comes from California retail outlets),
Oregon passed legislation that made pseudoephedrine a controlled substance, thus
requiring a prescription prior to sale. The results were dramatic. Prior to June, 2006
enactment of the Oregon law, there were an average of 284 methamphetamine labs seized
annually (and this was under a law similar to California's current law). In 2007, the most
recent full year of available meth lab statistics, only 2 labs and 16 dumpsites and remnant
sites were shut down. In effect, the law virtually eliminated Oregon's meth labs. We no
longer have to guess what works and what doesn't; Oregon has shown the way. Senate
Bill 484 is drawn from the Oregon law. It is easily the most important methamphetamine
law ever put before the California Legislature.
One final note, the sky did not fall when the Oregon law was enacted. First, many people
simply began purchasing some of the 60 other cold medications not containing ephedrine;
second, those who continued to use ephedrine products supported the law; third,
manufacturers of cold medications are accelerating their reformulation processes to
exclude pseudoephedrine in their products.
Senate Bill 484 presents a choice between sniffles and getting serious about addressing
California's methamphetamine epidemic.
FISCAL IMPACT
None at this time. There is no financial commitment or obligation from the City. A cost
savings could be realized in the future with a reduction of public safety costs as they
relate to methamphetamine.
Prepared by:
Captain John Momot
CONSENT ITEM
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: KURT CHRISTIANSEN; ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR
VIA: F.M. DELACH, CITY MANAGER
DATE: JUNE 15, 2009
SUBJECT: SELECTION OF A HOUSING REHABILITATION PROGRAM CONSULTANT FOR
ADMINISTRATION OF THE CITY'S SINGLE FAMILY HOUSING"REHABILITATION
PROGRAM
RECOMMENDATION
It is recommended that the City Council approve FRJ & Associates to administer the City's Single Family
Housing Rehabilitation Program, and authorize execution of the agreement, which is renewable annually up
to three years.
BACKGROUND
The City/Agency Housing Rehabilitation program has been ongoing since the 1980's, and is regularly
funded by Community Development Block Grant (CDBG) or redevelopment low -to -moderate income
housing funds. Grants up to $9,000 for minor home repair, and HOME loans averaging $25,000 are issued
to correct code and safety violations in conjunction with the Code Enforcement/Community Improvement
Program, and make visible exterior improvements. The City's program focuses primarily on minor home
repairs for owner -occupied single family homes. Funds are provided based on income eligibility of each
applicant. The Housing Rehabilitation Consultant is responsible for determining applicant eligibility,
preparing work specifications, cost estimates, proving inspection and construction management services,
preparing all required HOME loan documents on applicable forms provided by CDC, and notary services.
Additionally, the Housing Rehabilitation Consultant reviews and updates the Program Policy from time to
time, and program marketing if necessary. FRJ & Associates has been fulfilling these obligations
satisfactorily on behalf of the City.
Per Community Development Block Grant ("CDBG") federal regulations, it is necessary to conduct a
procurement process for ongoing housing rehabilitation program management consultant services funded by
CDBG funds every three years. After a publicized RFP process, five proposals were received from
Comprehensive Housing Services (CHS), FRJ & Associates, JWA Urban Consultants, LDM Associates, and
SJC 3 Consulting. The five proposals received are summarized as follows:
Honorable Mayor and City Council Members
Selection of a Housing Rehabilitation Program Consultant for Administration of the City's Single Family Housing
Rehabilitation Program
June 15, 2009
Page 2
Consultant Name
Estimated Administration Rate
Evaluation Rating
Points
Comprehensive Housing Svcs.
22.5 % Delivery Rate/Grant
94
FRJ & Associates
20.0% Delivery Rate/Grant
100
JWA Urban Consultants
35.2% Delivery Rate/Grant + Reimbursables
78
LDM Associates
20.0% Delivery Rate/Grant + Reimbursables
84
SJC 3 Consulting
20.0% Delivery Rate/Grant
93
The standard allowable administration rate for CDBG and HOME housing rehabilitation grants and loans is
20% of the grant/loan amount (Delivery Rate). For FY 2009/10, this translates to a total of $39,562 for the
CDBG grant program (based on $197,810 of CDBG-funded grants), and an estimated $20,000 for the
HOME Loan program (based on an expectation of issuing $100,000 in County -funded loans). The HOME
loan Delivery Rate is subsidized by the HOME program.
Because three of the proposers bid very closely to the same amount, other factors were used to select the
successful bidder. Staff contacted client references, and also took into account years in business, experience
with L.A. County -based programs, hourly rates for extra services and reimbursables, consultant availability,
etc. After evaluation, staff recommends FRJ & Associates ("FRP) to provide Housing Rehabilitation
Consultant services for FY 2009/10.
FRJ has worked successfully with the City, providing consistent and dependable bilingual staff. FRJ is
knowledgeable of the City's building code, and works closely with the Building and Community
Improvement Divisions to resolve health and safety violations. FRJ is also well versed in CDBG and
HOME federal regulations, and has been a leader in capturing HOME Loan funds, which are first -come -
first -served, for Azusa residents. FRJ works very well with Azusa residents, is available 6 days a week for
any emergencies that may arise, and goes out of its way to accommodate those seniors and handicapped
residents who cannot easily access the City Hall Housing Office. The selection of FRJ allows for a seamless
continuation of the current program.
FISCAL IMPACT
These services are budgeted in the FY 2009/10 Budget, and there is no additional fiscal impact.
Prepared by: Roseanna J. Jara, Sr. Accountant -Redevelopment
KAC:RJJ/cs
Attachments:
Agreement
Proposal
AGREEMENT BETWEEN THE CITY OF AZUSA
AND
FRJ & ASSOCIATES
FOR
CDBG PROJECT NO. 601168-09
SINGLE FAMILY HOUSING REHABILITATION PROGRAM
THIS AGREEMENT, entered this 15TH day of JUNE, 2009, by and between the CITY OF AZUSA
(herein called the "Grantee") and FRJ & ASSOCIATES (herein called the "Consultant" or
"Subrecipient").
WHEREAS, the Grantee has applied for and received funds from the United States Government under
Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and
WHEREAS, the Grantee wishes to engage the Consultant to assist the Grantee in utilizing such funds;
NOW, THEREFORE, it is agreed between the parties hereto that:
I. SCOPE OF SERVICE
A. Activities
The Consultant will be responsible for administering various federally -funded housing projects on behalf
of the Grantee including CDBG Project No. 601168-09 Single Family Housing Rehabilitation and the
L.A. County -funded HOME rehabilitation loan program.
Consultant Responsibilities
The Consultant is to provide program delivery tasks associated with administration of the
aforementioned housing projects. The Consultant will provide professional bilingual staff and
will conduct the program a minimum of two days per week on location at the City of Azusa.
Services will be provided as per terms of the submitted Proposal (attached herein as Exhibit A)
and as detailed below:
1. Program Development and Marketing
Provide the following services as necessary:
a. Evaluate the City's proposed housing programs and recommend program changes
which address the City's housing needs;
b. Revise and update the City's housing program procedures manual;
C. Provide program marketing including the preparation of brochures, public notices
and other promotional materials, in both Spanish and English;
d. Research alternative funding options;
e. Develop and implement new programs as requested;
f. Develop and maintain project tracking systems in order to expedite project
scheduling, accounting, required reports; and
g. Advertise and update Consultants' bid list with all pertinent information.
C-1
2. Program Administration
a. Accept and review applications. Conduct preliminary interviews to determine
financial eligibility in accordance with program requirements;
b. Prepare and finalize formal loan applications and other loan documents as
required under the HOME program;
C. Conduct property inspections and prepare cost estimates;
d. Obtain property profiles, title reports, termite inspections, and appraisals as
necessary;
e. Prepare specifications and bid documents, and obtain competitive bids from
licensed responsible Consultants;
f. Award contracts and hold preconstruction meetings with Consultants and
property owners; prepare pre -construction memorandum for distribution to all parties;
g. Conduct final inspections and close out projects with all necessary lien releases,
notices of completion, and Building Inspector's final approval;
h. Maintain a filing system for each applicant with all necessary documentation
(proof of residency in the City of Azusa, ethnicity, household income, household size,
and any other pertinent information) in compliance with federal, Community
Development Commission, and City of Azusa standards;
i. Prepare monthly status and other reports as requested;
J . Maintain Consultant information including Consultant's applications, inquiries,
bid list, insurance, complaints, and proof of advertisements.
B. Levels of Accomplishment
It is estimated that the following levels of housing rehabilitation improvements shall be completed during
Fiscal Year 2009/10:
Activi
Single Family Hsg. Rehab.
HOME Program
Estimated Funding Amt.
$197,810
$100,000
Estimated No. of Cases
22-30
3-4
Funding for the HOME program is first-come, first-served from the County of Los Angeles Community
Development Commission, and may be revised or deleted at any time. Consultant's hours will be
adjusted according to the amount of funding available in accord with the procedures described in Section
W.A. of this Agreement.
II. TIME OF PERFORMANCE
Services of the Consultant shall start on the 1ST day of JULY 2009 and end on the 30th day of June,
2010. This is a multi-year award and this Agreement can be extended up to a maximum of three
years by written amendment, in accordance with Section VI. G. Amendments, of this Agreement.
C-2
III. PAYMENT
A. Amount of Payment
It is expressly agreed and understood that the total amount to be paid by the Grantee under this
Agreement will not exceed $60,000.00 (Sixty Thousand Dollars and No/100) in FY 2009/10,
depending upon the number of actual cases completed. Staff will provide a minimum of Ten (10) hours
on-site per week, given the expected levels of accomplishments noted above. The City reserves the right
to adjust weekly hours in accordance with. availability of HOME loan program funds upon notice to
Consultant. Consulting services will be funded with CDBG funds and HOME Administrative Subsidy
funds.
B. Staffing
Consultant will provide bilingual staff proficient in administering federally -funded housing programs,
construction management, and federal regulations. Consultant will also provide support staff literate in
Word, Excel, etc., and proficient in clerical and customer service skills.
C. Terms of Pavment
The Grantee shall pay Consultant monthly upon receipt of billing from Consultant. Monthly billing shall
include client name, program, description of services provided, and amount charged for each client case.
Miscellaneous administrative services shall be identified by program type. Payment will be made thirty
(30) days after review and approval of submitted billing.
D. Reimbursement
In the event that the Grantee is required to reimburse the federal government as a result of a
determination, after audit, that the Consultant has misused funds, Consultant shall pay Grantee all
disallowed sums. Consultant's obligation to reimburse Grantee of misuse of funds shall survive the
termination or expiration of this Agreement.
E. Quarterly Reviews
Consultant and Grantee will conduct quarterly reviews to evaluate program status, delivery costs, and
compliance with budget objectives, and then make any required adjustments in staffing hours.
IV. NOTICES
Communication and details concerning this Agreement shall be directed to the following representatives:
Grantee
Roseanna J. Jara, Sr. Acct. -Redevelopment
City of Azusa
213 E. Foothill Boulevard
Post Office Box 1395
Azusa, CA 91702-1395
PH: (626) 812-5102; FAX: (626) 334-5464
C-3
Consultant
Vivian Moss or Billy Moss
FRJ & Associates
Riverside, CA 92503
PH: (951) 288-3805; FAX: (951) 848-9369
V. SPECIAL CONDITIONS
The Subrecipient agrees to comply with the requirements of Title 24 Code of Federal Regulations, Part
570 of the U.S. Department of Housing and Urban Development regulations concerning Community
Development Block Grant (CDBG) and all federal regulations and policies issued pursuant to these
regulations. The Subrecipient further agrees to utilize funds available under this Agreement to
supplement rather than supplant funds otherwise available.
VI. GENERAL CONDITIONS
A. General Compliance
The Subrecipient agrees to comply with all applicable federal, state and local laws and regulations
governing the funds provided under this Agreement.
B. Independent Contractor
Nothing contained in this agreement is intended to, or will be construed in any manner, as creating or
establishing the relationship of employer/employee between the parties. The Subrecipient will at all times
remain an independent contractor with respect to the services to be performed under this agreement. The
Grantee will be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or
medical insurance and Workers' Compensation Insurance as the Subrecipient is an independent
Contractor.
C. Hold Harmless
The Subrecipient will hold harmless, defend and indemnify the Grantee, its appointed officials,
employees, agents or volunteers from and against any and all liability, including but not limited to
demands, claims, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient's
performance or nonperformance of the services or subject matter called for in this agreement.
D. Workers' Compensation
The Subrecipient will provide Workers' Compensation Insurance coverage for all employees involved in
the performance of this Agreement as required by the Labor Code of the State of California. The
Subrecipient will furnish Grantee's Representative with an insurance certificate from its Workers'
Compensation insurance carrier certifying that it carries such insurance as required by State law,
including Employer's Liability of not less than $1,000,000 per accident, and the policy will not be
cancelled nor the coverage reduced during the term of this Agreement. Such policy will be endorsed to
state that thirty (30) days written notice to the City is required prior to reduction, cancellation, termination
or expiration of any kind.
E. Insurance & Bonding
The Subrecipient will carry sufficient insurance coverage to protect assets from loss due to theft, fraud
and/or undue physical damage, and as a minimum will purchase a blanket fidelity bond coverage for all
employees in an amount equal to cash advances from the Grantee.
C-4
Subrecipient will obtain, at its sole cost and file with the City, prior to exercising any right or performing
any obligation pursuant to this Agreement, and maintain for the period covered by this Agreement, a
policy or policies of General Public Liability, including Comprehensive General and Automobile
Liability insurance, or certificate of such insurance, satisfactory to the City Attorney of City, naming City,
its officers, agents and employees as insured or additional insured, which provides coverage not less than
that provided against liability for any and all claims and suits for damages or injuries to persons or
property resulting from or arising out of operations of Subrecipient, which insurance will provide
coverage for both bodily injury and property damage in not less than the following minimum amounts:
One Million Dollars ($1,000,000.00) for each occurrence for General Liability, and $1,000,000
combined single limit for Automobile Liability, or its equivalent. Said policy will also contain a
provision that no termination, cancellation or change of coverage of insured or additional insured will be
effective until thirty (30) days notice thereof has been given in writing to the City. Subrecipient will give
City prompt and timely notice of any claim made or suit instituted. Subrecipient may procure and
maintain, at its own cost and expense any additional kinds and amounts of insurance, which, in its own
judgment may be necessary. Subrecipient will obtain, at its sole cost and file with the City, prior to
exercising any right or performing any obligation pursuant to this Agreement, and maintain for the period
covered by this Agreement, a Blanket Honesty Bond for 100% of the amount of the Agreement.
Subrecipient will obtain, at its sole cost and file with the City, prior to exercising any right or performing
any obligation pursuant to this Agreement, and maintain for the period covered by this Agreement,
Professional Liability in an amount of not less than $100 million aggregate combined single limit, unless
this requirement has been waived in writing. Said policy will also contain a provision that no termination,
cancellation or change of coverage of insured or additional insured will be effective until thirty (30) days
notice thereof has been given in writing to the City.
The Subrecipient will comply with the bonding and insurance requirements of Attachment B of OMB
Circular A-110, Bonding and Insurance. Acceptable insurance carriers will be those admitted to write
insurance in California, or carriers with a rating equivalent to A+ by A.M. Best & Co. Carriers not
admitted in California, shall be subject to LESLI list on file with the California Department of Insurance.
F. Grantor Recognition
The Subrecipient will recognize the role of the grantor agency in providing services through this
Agreement. All activities, facilities and items utilized pursuant to this Agreement will be prominently
labeled as to funding source. In addition, the Subrecipient will include a reference to the financial support
provided herein in all publications made possible with funds made available under this Agreement:
G. Amendments
Grantee or Subrecipient may amend this Agreement at any time provided that such amendments make a
specific reference to this Agreement, and are executed in writing, signed by a duly authorized
representative of both organizations. Such amendments will not invalidate this Agreement or relieve or
release Granter or Subrecipient from its obligations under this Agreement.
Grantee may, at its discretion, amend this Agreement to conform with federal, state or local governmental
guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a
change in the funding, the scope of services, or schedule of, the activities to be undertaken as part of this
C-5
agreement, such modifications will be incorporated only by written amendment signed by both Grantee
and Subrecipient.
H. Suspension or Termination
Either party may terminate this Agreement at any time by giving written notices to the other party of such
termination and specifying the effective date thereof at least 30 days before the effective date of such
termination. Partial terminations of the Scope of Service in Paragraph IA above may only be undertaken
with the prior approval of Grantee. In the event of any termination for convenience, all finished or
unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials
prepared by Subrecipient under this agreement will be entitled to receive just and equitable compensation
for any satisfactory work completed on such documents or materials prior to the termination.
Grantee may also suspend or terminate this Agreement, in whole or in part, if Subrecipient materially fails
to comply with any term of this Agreement or with any of the rules, regulations or provisions referred to
herein; and the Grantee may declare the Subrecipient ineligible for any further participation in Grantee
contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe
the Subrecipient is in noncompliance with any applicable rules or regulations, the Grantee may withhold
up to fifteen (15) percent of said Agreement funds until such time as the Subrecipient is found to be in
compliance by the Grantee, or is otherwise adjudicated to be in compliance.
VII. ADMINISTRATIVE REOUIREMENTS
A. Financial Management
Accounting Standards
The Subrecipient agrees to comply with Attachment F of OMB Circular A-110 and agrees to
adhere to the accounting principles and procedures required therein, utilize adequate internal
controls, and maintain necessary source documentation for all costs incurred.
Cost Principles
The Subrecipient will administer its program in conformance with OMB Circular A-122, 'Cost
Principles for Non -Profit Organizations,' of A-21, 'Cost Principles for Educational Institutions as
applicable; and if the Subrecipient is a governmental or quasi -governmental agency, the
applicable sections of 24 CFR Part 85, 'Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments' for all costs incurred whether charged
on a direct or indirect basis.
B. Documentation and Record -Keeping
Records to be Maintained
The Subrecipient will maintain all records required by the Federal regulations specified in 24CFR
Part 570, Section 570.506, and that are pertinent to the activities to be funded under this
Agreement. Such records will include but not be limited to:
a. Records providing a full description of each activity undertaken;
C-6
b. Records demonstrating that each activity undertaken meets one of the National
Objectives of the CDBG program;
C. Records required to determine the eligibility of activities;
d. Records required to document the acquisition, improvement, use or disposition of
real property acquired or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and equal opportunity
components of the CDBG program;
f. Financial records as required by 24 CFR Part 570, Section 570.502, and OMB
Circular A-110; and
g. Other records necessary to document compliance with Subpart K of 24 CFR Part
570.
2. Record Retention
The Subrecipient will retain all accounting records, financial records, and supporting
documentation pertinent to expenditures incurred under this Agreement for a minimum period of
five (5) years after the termination of all activities funded under this agreement, or after the
resolution of all Federal audit findings, whichever occurs later. Records for nonexpendable
property acquired with funds under this Agreement will be retained for five (5) years after final
disposition of such property. Records for any displaced person must be kept for five (5) years
after he/she has received final payment.
Client Data
Subrecipient will maintain client data demonstrating client eligibility for services provided. Such
data will include, but not be limited to, client name, address, income level or other basis for
determining eligibility, and a description of services provided. Such information will be made
available to Grantee monitors or their designees for review upon request.
4. Disclosure
The Subrecipient understands that client information collected under this Agreement is private
and the use or disclosure of such information, when not directly connected with the
administration of the [Grantee's] or Subrecipient's responsibilities with respect to services
provided under this Agreement, is prohibited unless written consent is obtained from such person
receiving service or, in the case of a minor, that of a responsible parent/guardian, or otherwise as
allowed by federal or state law.
Property Records
The Subrecipient will maintain real property inventory records which clearly identify properties
purchased, improved or sold. Properties retained will continue to meet eligibility criteria and will
conform with the 'changes in use' restrictions specified in 24 CFR Part 570, Section
570.503(b)(8).
C-7
6. National Obiectives
The Subrecipient agrees to maintain documentation that demonstrates that the activities carried
out with funds provided under this Agreement meet one or more of the CDBG program's national
objectives:
1) benefit low -to moderate -income persons,
2) aid in the prevention or elimination of slums or blight,
3) meet community development needs having a particular urgency - as defined in 24 CFR
Part 570, Section 570.208.
7. Close -Outs
Grantee close-out requirements must be completed within 30 days after expiration of this
Agreement. Activities during this close-out period will include, but are not limited to; making
final payments, disposing of program assets including the return of all unused materials,
equipment, unspent cash advances, program income balances, and receivable accounts to the
Grantee, and determining the custodianship of records.
Audits & Inspections
All Subrecipient records with respect to any matters covered by this agreement will be made
available to the Grantee, grantor agency, their designees or the Federal Government, at any time
during nonnal business hours, as often as the Grantee or grantor agency deems necessary, to
audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in
audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the
Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will
constitute a violation of this Agreement and may result in the withholding of future payments.
The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with
current city policy concerning Subrecipient audits. Audit will comply with OMB Circular A-133
"Audits of Institutions of Higher Education and Other Nonprofit Institutions."
C. Reporting and Payment Procedures
Budgets
The Subrecipient will submit a detailed contract budget of a form and content prescribed by the
City for approval by the Grantee. The Grantee and the Subrecipient may agree to revise the
budget from time to time in accordance with existing city policies.
2. Program Income
If program income is generated, the Subrecipient will report all program income as defined in 24
CFR Part 570, Section 570.500(a) generated by activities carried out with CDBG funds made
available under this Agreement. The program income may be used by the Subrecipient during the
Agreement period for activities permitted under this Agreement and the Subrecipient will reduce
requests for additional funds by the amount of any such program income balances on hand. All
unused program income will be returned to the Grantee at the end of the Agreement period. Any
interest earned on cash advances from the U.S. Treasury is not program income and will be
remitted promptly to the Grantee.
3. Indirect Costs
If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan for
determining the appropriate Grantee share of administrative costs and will submit such plan to the
Grantee for approval prior to the execution of the Agreement.
4. Payment Procedures
The Grantee will pay to the Subrecipient funds available under this Agreement based upon
information submitted by the Subrecipient and consistent with any approved budget and city
policy concerning payments. With the exception of certain advances, payments will be made for
eligible expenses actually incurred by the Subrecipient, and not to exceed actual cash
requirements. Payments will be adjusted by the Grantee in accordance with advance fund and
program income balances available in Subrecipient accounts. In addition, the Grantee reserves
the right to liquid funds available under this Agreement for costs incurred by the Grantee on
behalf of the Subrecipient.
D. Procurement
Compliance
The Subrecipient will comply with current city policy concerning the purchase of equipment and
will maintain an inventory of all non -expendable personal property as defined by such policy as
may be procured with funds provided herein. The policy is available upon request. AR program
assets (unexpended program income, property, equipment, etc.) will revert to the Grantee upon
termination of this Agreement.
OMB Standards
The Subrecipient will procure materials in accordance with the requirements of Attachment 0 of
OMB Circular A-110, Procurement Standards, and will subsequently follow Attachment N,
Property Management Standards, covering utilization and disposal of property.
Travel
The Subrecipient will obtain written approval from the Grantee for any travel outside the
metropolitan area with funds provided under this Agreement.
4. Relocation. Acquisition and Displacement
The Subrecipient agrees to comply with 24 CFR 570.606 relating to the acquisition and
disposition of all real property utilizin grant funds and to the displacement of persons,
businesses, nonprofit organizations and farms occurring as a direct result of any acquisition of
real property utilizing grant funds. The Subrecipient agrees to comply with applicable Grantee
Ordinances, Resolutions, and Policies concerning displacement of individuals from their
residences.
C-9
VIII PERSONNEL & PARTICIPANT CONDITIONS
A. Civil Rights
Com liiance
The Subrecipient agrees to comply with current city and state civil rights policies and with Title
VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as
amended, Section 109 of Title I of the Housing and Community Development Act of 1974,
Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the
Age Discrimination Act of 1975, Executive Order 11063 as amended by Executive Order 12259,
and with Executive Order 11246 as amended by Executive Orders 11375 and 12086.
2. Nondiscrimination
The Subrecipient will not discriminate against any employee or applicant for employment
because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap,
age, marital status, or status with regard to public assistance. The Subrecipient will take
affirmative action to insure that all employment practices are free from such discrimination. Such
employment practices include but are not limited to: hiring, upgrading, demotion, transfer,
recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of
compensation, and selection for training, including apprenticeship. The Subrecipient agrees to
post in conspicuous places, available to employees and applicants for employment, notices to be
provided by the contracting agency setting forth the provisions of this nondiscrimination clause.
Land Covenants
This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L.
88-352) and 24 CFR 570, Part I. in regard to the sale, lease, or other transfer of land acquired,
cleared or improved with assistance provided under this Agreement. The Subrecipient will cause
or require a covenant running with the land to be inserted in the deed or lease for such transfer,
prohibiting discrimination as herein defined, in the sale, lease or rental or in the use or occupancy
of such land, or in any improvements erected or to be erected thereon, providing that the Grantee
and the United States are beneficiaries of and entitled to enforce such covenants. The
Subrecipient in undertaking its obligation to carry out the program assisted hereunder, agrees to
take such measures as are necessary to enforce such covenant, and will not itself so discriminate.
4. Rehabilitation Act of 1973
The Subrecipient agrees to comply with any federal regulations issued pursuant to compliance
with Section 504 of the Rehabilitation Act of 1973, 929 U.S.C. 706) which prohibits
discrimination against the handicapped in any federally assisted program. No otherwise qualified
individual with handicaps in the United States will, solely by reason of his or her handicap, be
excluded from the participation in, be denied the benefits of, or be subjected to discrimination
under any program or activity receiving Federal financial assistance.
The Age Discrimination Act of 1975
C-10
No person in the United States will, on the basis of age, be excluded from the participation in, be
denied the benefits of, or be subjected to discrimination under any program or activity receiving
Federal financial assistance.
B. Affirmative Action
Approved Plan
The Subrecipient agrees that it will be committed to carry out pursuant to the Grantee's
specifications an Affirmative Action Program in keeping with the principles as provided in
President's Executive Order 11246 of September 24, 1965. The Grantee will provide Affirmative
Action guidelines to the Subrecipient upon request to assist in the formulation of such program.
The Subrecipient will submit a plan, if applicable, for an Affirmative Action Program for
approval prior to the award of funds.
2. W/MBE
The Subrecipient will use its best efforts to afford minority and women -owned business
enterprises the maximum practicable opportunity to participate in the performance of this
Agreement. As used in this Agreement, the term "minority and female business enterprise' means
a business at least fifty-one (5 1) percent owned and controlled by minority group members or
women. For the purpose of this definition, "minority group members" are Afro-Americans,
Spanish-speaking, Spanish surnamed or Spanish -heritage Americans, Asian -Americans, and
American Indians. The Subrecipient may rely on written representations by Subrecipients
regarding their status as minority and female business enterprises in lieu of an independent
investigation.
Access to Records
The Subrecipient will furnish and cause each of its subsubrecipients to furnish all information and
reports required hereunder and will permit access to its books, records and accounts by the
Grantee, HUD or its agent, or other authorized federal officials for purposes of investigation to
ascertain compliance with the rules, regulations and provisions stated herein.
4. Notifications
The Subrecipient will send to each labor union or representative of workers with which it has a
collective bargaining agreement or other contract or understanding, a notice, to be provided by
the agency contracting officer, advancing the labor union or worker's representative of the
Subrecipient's commitments hereunder, and will post copies of the notice in conspicuous places
available to employees and applicants for employment.
EEO/AA Statement
The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf
of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer.
6. Subcontract Provisions
C-11
The Subrecipient will include the provisions of Paragraphs VII A, Civil Rights, and B
Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that
such provisions will be binding upon each subsubrecipient or vendor.
C. Employment Restrictions
Prohibited Activity
The Subrecipient is prohibited from using funds provided herein or personnel employed in the
administration of the program for political activities; sectarian, or religious activities; lobbying,
political patronage, and nepotism activities. Subrecipient will certify that it is familiar with the
requirements of the Los Angeles County Code Chapter 2.160 (Los Angeles County Ordinance
93-0031), and; that all persons/entities/firms acting on behalf of Subrecipient have and will
comply with the County Code, and; that any person/entity/firm who seeks a contract will be
disqualified there from and denied the contract and, will be liable in civil action, if any lobbyist,
lobbying firm, lobbyist employer or any other person or entity acting on behalf of Subrecipient
fails to comply with the provisions of the County Code. Ordinance No. 93-0031 amending the
Los Angeles County Code relating to lobbyists is attached hereto as Attachment I and
incorporated into this Agreement by reference.
2. OSHA
Where employees are engaged in activities not covered under the Occupational Safety and Health
Act of 1970, they will not be required or permitted to work, be trained, or receive services in
buildings or surroundings or under working conditions which are unsanitary, hazardous or
dangerous to the participants' health or safety.
Safety Standards and Accident Prevention
The Subrecipient will comply with all applicable federal, state and local laws governing safety,
health and sanitation. The Subrecipient shall provide all safeguards, safety devices and protective
equipment and take any other necessary actions, as its own responsibility, reasonably necessary to
protect the life and health of employees on the job and the safety of the public and to protect
property in connection with the performance of this Agreement. Participants employed or trained
for inherently dangerous occupations, e.g., fire or police jobs, will be assigned to work in
accordance with reasonable safety practices.
4. Labor Standards
The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance
with the Davis -Bacon Act as amended, the provisions of Contract Work Hours, the Safety
Standards Act, the Copeland 'Anti -Kickback' Act (40 U.S.C. 276, 327-333) and all other
applicable federal state and local laws and regulations pertaining to labor standards insofar as
those acts apply to the performance of this Agreement. The Subrecipient will maintain
documentation which demonstrates compliance with hour and wages requirements of this part.
Such documentation will be made available to the Grantee for review upon request.
The Subrecipient agrees that, except with respect to the rehabilitation or construction of
residential property designed for residential use for less than eight (8) households, all contractors
C-12
engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any
building or work financed in whole or in part with assistance provided under this Agreement, will
comply with federal requirements adopted by the Grantee pertaining to such contract, will comply
with federal requirements adopted by the Grantee pertaining to such contracts and with the
applicable requirements of the regulations of the Department of Labor, under 29 CFR, Parts 3,15
and 7 governing the payment of wages and ratio of apprentices and trainees to journeymen;
provided, that if wage rates higher than those required under the regulations are imposed by state
or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to
require payment of the higher wage. The Subrecipient will cause or require to be inserted in full,
in all such contracts subject to such regulations, provisions meeting the requirements of this
paragraph, for such contracts in excess of $10,000.00.
D. Conduct
Assi=ability
Subrecipient may not assign any portion of this Agreement without the express written consent of
the Grantee. Any attempt by Subrecipient to assign any performance of the terms of this
Agreement shall be null and void and shall constitute a material breach of this Agreement, upon
which the Grantee may immediately terminate this Agreement through the Executive Director or
his/her designee.
2. Hatch Act
The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement,
will be in any way or to any extent engaged in the conduct of political activities in violation of
Chapter 15 of Title V United States Code.
Conflict of Interest
The Subrecipient agrees to abide by the provisions of 24 CFR Part 570, Section 570.611 with
respect to conflicts of interest, and covenants that it presently has no financial interest and will
not acquire any financial interest direct or indirect, which would conflict in any manner or degree
with the performance of services required under this Agreement. The Subrecipient further
covenants that in the performance of this Agreement no person having such a financial interest
will be employed or retained by the Subrecipient hereunder. The Subrecipient represents,
warrants and agrees that to the best of its knowledge, it does not presently have, nor will it
acquire during the term of this Agreement, any interest direct or indirect, by contract,
employment or otherwise, or as a partner, joint venture or shareholder (other than as a
shareholder holding a one (1%) percent or less interest in publicly traded companies) or affiliate
with any business or business entity that has entered into any contract, subcontract or
arrangement with the Grantee. Upon execution of this Agreement and during its term, as
appropriate, the Subrecipient shall, disclose in writing . to the Grantee any other contract or
employment during the term of this Agreement by any other persons, business or corporation in
which employment will or may likely develop a conflict of interest between the Grantee's interest
and the interests of the third parties. These conflict of interest provisions apply to any person
who is an employee, agent consultant, officer, or elected official or appointed official of the
Grantee, or of any designated public agencies or Subrecipients which are receiving funds under
C-13
the CDBG Entitlement program. In the procurement of supplies, equipment, construction and
services by Subrecipients, the conflict of interest provisions in 24 CFR 85.36, OMB Circular A-
110, and 24 CFR 570.611, respectively, will apply. No employee, officer or agent of the
Subrecipient will participate in selection, or in the award or administration of a contract supported
by Federal funds if a conflict of interest, real or apparent, would be involved.
4. Subcontracts
The requirements of this Agreement may not be subcontracted by the Subrecipient without the
advance approval of the Grantee. Any attempt by the Subrecipient to subcontract without the
prior consent of the Grantee may be deemed a material breach of this Agreement. If the
Subrecipient desires to subcontract, the Subrecipient shall provide the following information
promptly at the Grantee's request:
A description of the work to be performed by the Subcontractor;
A draft copy of the proposed subcontract; and
Other pertinent information and/or certifications requested by the Grantee.
The Subrecipient shall indemnify and hold the Grantee harmless with respect to the activities of
each and every Subcontractor in the same manner and to the same degree as if such
Subcontractor(s) were the Subrecipient's employees. The Subrecipient shall remain fully
responsible for all performances required of it under this Agreement, including those that the
Subrecipient has determined to subcontract, notwithstanding the Grantee's approval of the
Subrecipient's proposed subcontract. The Grantee's consent to subcontract shall not waive the
Grantee's right to prior and continuing approval of any and all personnel, including Subcontractor
employees, providing services under this Agreement. The Subrecipient is responsible to notify its
Subcontractors of this Grantee right. The Grantee's CDBG Administrator is authorized to act for
and on behalf of the Grantee with respect to approval of any subcontract and Subcontractor
employees. After approval of the subcontract by the Grantee, the Subrecipient shall forward a
fully executed subcontract to the Grantee for their files. The Subrecipient shall be solely liable
and responsible for all payments or other compensation to all Subcontractors and their officers,
employees, agents, and successors in interest arising through services performed hereunder,
notwithstanding the Grantee's consent to subcontract. The Subrecipient shall obtain certificates
of insurance, which establish that the Subcontractor maintains all the programs of insurance
required by the Grantee from each approved Subcontractor. The Subrecipient shall ensure
delivery of all such documents to the Grantee before any Subcontractor employee may perform
any work hereunder.
Copyright
If this Agreement results in any copyrightable mate" the Grantee and/or grantor agency reserves
the right to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwise
use and to authorize others to use, the work for government purposes.
6. Religious Organization
The Subrecipient agrees that funds provided under this Agreement will not be used for religious
activities, to promote religious interests, or for the benefit of a religious organization in
accordance with the federal regulations specified in 24 CFR Part 570, Section 570.2000.
C-14
7. Safelv Surrendered Babv Law
a. The Subrecipient shall notify and provide to its employees, and shall require each
subcontractor to notify and provide to its employees, a fact sheet regarding the Safely
Surrendered Baby Law, its implementation in Los Angeles County, and where and how
to safely surrender a baby. The fact sheet is available on the Internet at
www.babysafela.org.
b. The Subrecipient acknowledges that the County places a high priority on the
implementation of the Safely Surrendered Baby Law. The Subrecipient understands that
it is the County's policy to encourage all Contractors to voluntarily post the County's
"Safely Surrendered Baby Law" poster in a prominent position at the Subrecipient's
place of business. The Subrecipient will also encourage its Subcontractors, if any, to post
this poster in a prominent position in the Subcontractor's place of business. The
Department of Children and Family Services of the County of Los Angeles will supply
the Subrecipient with the poster to be used.
IX. ENVIRONMENTAL CONDITIONS
A. Flood Disaster Protection
The Subrecipient agrees to comply with the requirements of the Flood Disaster Protection Act of 1973
(P.L.-2234) in regard to the sale, lease or other transfer of land acquired, cleared or improved under the
terns of this Agreement, as it may apply to the provisions of this Agreement.
B. Lead -Based Paint
The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance
provided under this Agreement will be subject to HUD Lead -Based Paint Regulations at 24 CFR Part
570, Section 570.608, and 24 CFR Part 35, and in particular Sub -Part B thereof. Such regulations pertain
to all HUD -assisted housing and require that all owners, prospective owners, and tenants or properties
constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such
notification will point out the hazards of lead-based paint and explain the symptoms, treatment and
precautions that should be taken when dealing with lead-based paint poisoning.
C. Historic Preservation
The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National
Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR,
Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties,
insofar as they apply to the performance of this Agreement.
In general this requires concurrence from the State Historic Preservation Officer for all rehabilitation and
demolition of historic properties that are fifty years old or older or that are included on a Federal, State, or
local historic property list.
C-15
This agreement may be modified at any time by mutual consent, but such modification must be in
written form signed by the authorized representative of each party.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
City Manager
City of Azusa
FRJ & Associates
Attest:
City Cleric
C-16
Date:
Date:
FRJ & ASSOCIATES
PROPOSAL
CDBG SINGLE-FAMILY RESIDENTIAL
REHABILITAION PROGRAM
HOME SINGLE-FAMILY RESIDENTIAL
REHABILITATION LOAN PROGRAM
PREPARED FOR:
CITY OF AZUSA
REDEVELOPMENT AGENCY DIVISION
ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
213 E. FOOTHILL BLVD.
AZUSA, CA 91702
14110 MOONRIDGE DRIVE • RIVERSIDE, CA 92503 • 951-288-3805 • FAX: 951-848-9369
FRJ & ASSOCIATES
14110 MOONRIDGE DR.
RIVERSIDE, CA 92503
951-780-0126 0 Fax 951-848-9369
bnvmoss@yahoo.com
April 30, 2009
Kurt Christiansen
Director of Economic and Community Development Department
Redevelopment Agency Division
City of Azusa
213 East Foothill Blvd.
Azusa, CA 91702
To Kurt Christiansen:
Thank you for giving us the opportunity to submit a proposal for the City of Azusa CDBG Single
Family Residential Rehabilitation Grant Program and the "HOME" Single Family Residential
Rehabilitation Loan Program. We submit the following proposal (per the RFP) to implement these
programs, as well as assist with the Commercial Facade Rehabilitation Program for your City.
We submit the following scope of services:
1. Program Evaluation -Recommend program changes to meet housing needs.
2. Revise Procedures- Update City's housing manual as necessary.
3. Program Marketing -Prepare brochures, public notices, and other promotional materials.
4. Implementation- Develop and implement programs as necessary.
5. Tracking System- Develop and maintain a project tracking system, keep contractor data up
to date.
6. Filing System- Maintain filing system for each applicant with all necessary documentation.
7. Monthly Reports- Prepare status reports and quarterly performance reports.
8. Monitoring- Meet with CDC and HUD representatives on behalf of the City.
We propose to bill each case for 20% of each CDBG and HOME project total. Additionally, we
propose to bill each Commercial Facade Rehabilitation Program case for 15% of each
project total. This fee is all inclusive of the following services; photos, notary, travel expenses, cell
phones, off hour appointments and phone calls. We are available to residents six days a week and
available on site two days (Monday and Wednesday) per week from 7:00-12:00. Two staff members
will be involved in all cases. In addition, appointments can be scheduled around resident's
availability.
Our firm has been in business for over fifteen years. We are a small, minority, bilingual company
focused entirely on providing our clients with the care, expertise, and dedication required for
successful redevelopment projects. We work hard to make sure each client is satisfied. We look
forward to continuing our relationship with the City of Azusa. Please do not hesitate to call us with
any questions.
Sincerely,
Vivian J. Mos
Partner
14110 MOONRIDGE DRIVE • RIVERSIDE, CA 92503 • 951-288-3805 4 FAX: 951-848-9369
Table of Contents
Introduction.................................................................................................1
Scopeof Work & Pricing.............................................................................2
CurrentProjects...........................................................................................4
PastProjects................................................................................................5
References...................................................................................................6
Qualifications..............................................................................................7
Recommendations & Photos......................................................................8
INTRODUCTION
FRJ & Associates is dedicated to serving the residents of Azusa. We have been working
effectively in the City of Azusa for the last fifteen years. We are committed to meeting the needs of
its residents, making the city of Azusa our top priority. The residents of Azusa can get a hold of us
anytime to answer questions or take care of problems that arise. Our firm schedules appointments
around the resident's availability and gives them courtesy calls to i emind them of appointments. We
work with the Senior Center and understand the special needs of the elderly and disabled. FRJ helps
all our special need clients through the application process, and drives to their homes for signatures
and appointments normally handled in the office. We are constantly finding ways to improve our
services to meet the needs of the residents.
FRJ & Associates is a partnership of consultants highly experienced in CDBG, HOME, and
Redevelopment (including 20% set aside) programs. We adhere strictly to CDBG guidelines and
receive high marks during all Community Development Commission of the County of Los Angeles
audits. We have a great working relationship with Margaret Jamerson, Development Specialist with
Community Development Commission of the County of Los Angeles, and are experienced in
submitting loans for approval through the HOME program. We are very familiar with the City of
Azusa building code and work closely with the code enforcement department to make sure code
cases are handled in a timely manner.
Azusa is like our second home, we know many of the residents by name and take pride in the
work we do.
1
FRJ & ASSOCIATES
SCOPE OF WORK
CDBG Grants and HOME Loans
REHABILITATION PROJECT DEVELOPMENT
1. Collecting applications
2. Setting up files
3. Verifying completion of application
4. Requesting additional documents and/or information
5. Interview with applicants/explaining procedures
6. Approval of application
LOAN PROCESSING
1. Mortgage, Employment, Bank Accounts
2. Social Security, SSI, Unemployment, Etc.
3. Credit Reports
4. Termite Reports
5. Appraisal
6. Title Report
7. Historical Preservation Clearance (through CDC)
8. Notarization & Recordation
PRE -CONSTRUCTION
Inspection, Work Write Up's, Bidding Process
To include the following:
1. Initial inspection w/pictures
2. Work write up w/ signatures
3. Procurement of rehabilitation to be performed
4. Walk through (if applicable)
5. Bid opening
6. Bid results
7. Selection of contractor
ABATEMENT (if applicable)
Lead/Asbestos/Mold Testing, Abatement, and Clearance
To include the following:
1. Procurement of environmental testing & abatement companies
2. Visual inspection
3. Schedule testing of items containing lead, mold, or asbestos
4. Send report to abatement companies
5. Receive abatement quotes
6. Selection of contractor
7. Schedule abatement to be performed
8. Send for a clearance
CONSTRUCTION MANGEMENT
1. Contract with owner & contractor signatures
2. Notice to Proceed (following abatement & clearance, when applicable)
3. Construction Management
a. Inspections
b. Client communication
c. Contractor supervision
4. Approve signed change orders (when applicable)
5. Submit change orders to CDC (HOME)
6. Progress payments (HOME-)
FINAL
1. Final inspection w/pictures
2. Punch list (if necessary)
3. Signature on Final & Notice of Completion
4. Send Notice of Completion to be recorded (HOME)
5. Invoice &lien release
6. Put in for payment
PRICING
We propose to bill each CDBG Single Family Residential Rehabilitation Grant Program for 20% of
each project total. Pricing based on 22-30 estimated minor home rehabilitation grants.
We propose to bill each "HOME" Single Family Residential Rehabilitation Loan Program case for
20 % of each project total. Pricing based on 3-4 estimated loans.
We propose to bill each Commercial Facade Rehabilitation Program case for 15% of each project
total. Pricing based on a case by case basis to assist with certain administrative components.
FRJ & Associates will only charge for successful projects. If an application does not get approved,
no fee will be charged. FRJ & Associates will also participate in any activity through the
Redevelopment Agency to help promote the program at no additional fee.
Fees are all inclusive of the following services; photos, notary, travel expenses, cell phones, off hour
appointments, and phone calls. Our firm will provide laptops, fax machine, printers, and copier.
CURRENT PROJECTS
City of Azusa (15 years)
Wrote and administer:
A. CDBG Single Family Residential Rehabilitation Grant Program
B. HOME Single Family Residential Rehabilitation Loan program
Administer:
A. Commercial Facade Rehabilitation Program
City of Monrovia (]3 years)
Wrote and administer:
A. HOME Single Family Residential Rehabilitation Loan program
Administer:
A. Monrovia Area Partnership Program
H
PAST PROJECTS
City of Azusa
Wrote and Administered- Rental Rebate Program, Handyman Grant Program, Treescape Program,
Commercial Loan Program
Administered- Home Ownership Program, Mortgage Credit Certificate Program, Independent Cities Lease
Finance Authority Fresh Rate Program
City of Monrovia
Wrote and Administered- CDBG Grant Program, Neighborhood Services Program
Administered- Commercial Fagade Program
City of Lynwood
Wrote and Administered- Single Family HOME Rehabilitation Grant Program, Single Family HOME
Rehabilitation Loan Program, HOME Rental Rehabilitation Loan Program
City of Palmdale
Construction Management- Neighborhood Enhancement Program
County of Los Angeles
Construction Management- Community Development Commission County of Los Angeles Grant Program
City of Rialto
Construction Management- Loan and Grant Programs
City of Colton
Construction Management- Loan and Grant Programs
City of Pomona
Construction Management- Loan and Grant Programs
Other
Sub contracted under Willdan and Associates, Inc. for the cities of West Hollywood, Burbank, Santa Monica,
and Costa Mesa using CDBG, HUD, and 20% Set Aside Redevelopment Funds.
5
REFERENCES
City of Azusa
Kurt Christiansen
Director of Economic and Community Development Department
Tel. 626-812-5299
City of Monrovia
Dan McConnell
Housing Rehabilitation Coordinator
Tel. 626-932-5504
City of Palmdale
Mike Miller
Housing Manager
Tel. 661-266-0115
City of Rialto
Robb R. Steel
Director of Redevelopment
Tel. 909-879-1140
Community Development Commission County of Los Angeles
Larry J. Matthews
Manager
Tel. 323-890-7236
City of Baldwin Park
Suzie Ruelas
Acting Housing Manager
Tel. 626-960-4011 ext. 496
QUALIFICATIONS
Vivian Moss
Partner (15 years)
Vivian Moss has worked in Redevelopment for the past fourteen years. She has written and implemented
CDBG, HOME, and Redevelopment programs for the cities of Azusa and the Monrovia. Vivian wrote and
implemented the HOME grant, loan, & rental loan programs for the City of Lynwood. She performed
construction management for the City of Palmdale & Community Development Commission of the County
of Los Angeles.
Vivian Moss' typical responsibilities include, but are not limited to, rehabilitation project development (from
intake to approval.) She handles the loan processing from verifications, reports, recording to finals. She
meets with CDC representatives and keeps files organized.
Vivian Moss is bilingual (in Spanish) and a notary. A few of Vivian's best personal qualities include patience,
dependable, and the ability to work well with others.
Bill Moss
Partner (8 years)
Bill Moss has worked in Redevelopment for the last eight years. Currently, he handles the preconstruction,
abatement, and construction management for the City of Azusa and the City of Monrovia. He has an overall
knowledge of the construction and the Uniform Building Code.
Bill was a labor superintendent for a construction company and worked in different capacities in the
construction field for the last 25 years. He has worked in the cities of Lynwood, Rialto, Palmdale, and
Community Development Commission of the County of Los Angeles.
Bill Moss has limited bilingual capabilities and is a notary. A few of Bill's best personal qualities include
honesty, problem solving, and a great sense of humor.
7
RECOMMENDATIONS & PHOTOS
CordE D. Carrillo
Acting Executive Director
COMMUNITY DEVELOPMENT COMMISSION Gloria Molina
of the Countyf Los Angeles Mark Ridley-Thomas
o 9 Zev Yaroslawicy
2 Coral Circle - Monterey Park, CA 91755 Dan Knabe
Michael D. Antonovich
323.890.7001 - TTY: 323.838.7449 - www.locdc_org Commissioners
To whom it may concern:
My name is Margaret Jamerson, I work with Community Development
Commission County of Los Angeles (CDC) overseeing the HOME
Rehabilitation Loan Program with participating cities. I have worked with
Vivian and Bill Moss from FRJ and Associates for over 15 years. We have
maintained an effective working relationship throughout the years.
FRJ and Associates has been instrumental to the timeliness and accuracy
of the loans submitted. They strive to complete cases in a timely manner
and maintain open communication between the owner, the contractor, and
the CDC. They've run a successful program in the past and have new
ideas for the future.
I feel FRJ & Associates is an asset to any city. They are professional and
competent in their field. If you have any questions regarding this letter,
please contact me at (323) 890-7244.
Sincerely,
tlyl��
Margaret Jamerson
Development Specialist
mjlfrj letter 509
Strengthening Neighborhoods - Supporting Local Economies - Empowering Families - Promoting Individual Achievement
�t�cxro�a
.� oe
A£W CENTllAY
May 4, 2009
To Whom it May Concern:
I have known and have worked with Bill and Vivian Moos (FRJ and Associates)
of the Housing Rehabilitation program for more than seven years. The Moss
team has assisted the Community Improvement (Code Enforcement) Division on
countless occasions over the years, regarding substandard housing, and
properties that have been declared to be public nuisances. The Housing
Rehabilitation program under the leadership of FRJ and Associates has been a
great asset and an invaluable tool in working with lower income property owners
on such projects as landscaping, roofing, painting and driveway replacements to
name a few_ FRJ and Associates have also assisted the Community
Improvement Division with some our most problematic properties with finding
solutions through the use of the Rehabilitation program.
RFJ and Associates are a well organized, efficient, and an extremely competent
organization, and has an excellent rapport with the Community Improvement
staff.
In summary, I highly recommend FRJ and Associates and the Rehabilitation
Housing program. FRJ and Associates is a proven asset to the Community
Improvement Division, and the City of Azusa.
If you have any questions, please do not hesitate to contact me at (626)812-5285
Sincerely,
-- � —ftvj--
Rick McMinn
Community Improvement Supervisor
City of Azusa
.4-11 0*6.
� x «� /\\�
I
CONSENT
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ALAN KREIMEIER, DIRECTOR OF ADMINISTRATIVE
SERVICES/CFO
VIA: F. M. DELACH, CITY MANAGER��
DATE: JUNE 15, 2009
SUBJECT: PURCHASE OF STREET LIGHTS AND APPURTENANCES FOR
ROSEDALE DEVELOPMENT
RECOMMENDATION
It is recommended that in accordance with Section 2-523(d), under Article VII, Bidding
and Contracting, of the Azusa Municipal Code, Council approve the issuance of a
purchase order in an amount not to exceed $42,172, to Wesco Receivables Corp., of
Santa Fe Springs, CA.
BACKGROUND
There are 122 homes within the Rosedale Development that have been sold and occupied.
As a matter of public safety, it is important that regular and routine maintenance and
repairs be performed on the streetlights in that development, as a deterrent to theft and
vandalism. The responsibility for maintaining these streetlights has been turned over to
the Electric Division of Azusa Light & Water. Central Stores has been asked to keep
these streetlights and all of their replacement parts in inventory, so that should the need
arise for repairs or parts, they are readily available, thereby keeping streetlight downtime
to a minimum. The above mentioned streetlights are unique to the Rosedale
Development, and unlike any other streetlights in Azusa. Wesco Receivables is the only
distributor of these items in the Western United States, therefore they are the sole source
of supply for this particular design of streetlight.
I
FISCAL IMPACT
There is no fiscal impact to the General Fund, as these streetlights and appurtenances will
be purchased under Stores Inventory account number 3300-0000-0016-01, and will be
charged to the appropriate Electric Division account as they are checked out of Central
Stores.
Prepared by: Tony Garcia
CONSENT
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
ALAN KREIMEIER, DIRECTOR OF FINANCE/CFO
VIA:
F.M. DELACH, CITY MANAGERl�
DATE:
JUNE 15, 2009
SUBJECT: BLANKET PURCHASE ORDERS OF $10,000 ANDOVER FOR FY
2009-10
RECOMMENDATION
It is recommended that in accordance with Sections 2-523 and 2-524, under Article VII,
Bidding and Contracting, of the Azusa Municipal Code, Council approve the issuance of
Blanket Purchase Orders in an amount of $10,000 or more, detailed on the attached
schedule.
BACKGROUND
Each year at this time, City Council approves Blanket Purchase Orders that are in the
amount of $10,000 or more, for the upcoming fiscal year. The purchase orders are good
for one year, expiring on June 30, 2010. The amounts listed on the Blanket Purchase
Orders are estimates only, and will have no impact the 2009-10 budgets until they are
actually used.
FISCAL IMPACT
Monies for these Blanket Purchase Orders have been budgeted for FY 2009-10 by their
respective departments.
Prepared by: Tony Garcia, Buyer
CITY OF AZUSA
BLANKET & CONTRACT PURCHASE ORDERS $10,000.00 AND MORE
FISCAL 2009/2010
ANNUAL EST. DIV/DEPT. RECOMMENDED VENDOR.
$ 4,000,000.00
Light & Water
APS (Arizona Public Service)*
$ 15,000.00
Light & Water
AT &T*
$ 24,999.00
Police
AT&T Mobility
$ 24,999.00
Information Services
AT&T Mobility*
$ 20,000.00
Transportation
Access Services Inc.-
$ 20,000.00
Recreation/Parks
Acosta Growers
$ 15,000.00
Public Works
Advanced Infrastructure Tech.*
$ 70,000.00
Public Works
Air -Ex Air Conditioning*
$ 30,000.00
Light & Water
Altec Industries Inc.*
$ 13,000.00
Police
American Mobile Wash
$ 300,000.00
Light & Water
Anaheim, City of
$ 20,000.00
Light & Water
AppleOne Employment Services*
$ 225,000.00
Public Works
Athen's Disposal Co.*
$ 60,000.00
Information Services
Avaya*
$ 20,000.00
Facilities
B & K Electric Wholesale*
$ 100,000.00
Light & Water
BP Energy*
$ 150,000.00
Light & Water
Badger Meter Inc.*
$ 30,000.00
Library
Baker & Taylor
$ 10,000.00
Light & Water
Banning, City of*
$ 10,000.00
Light & Water
Barclays Bank PLC.*
$ 150,000.00
Light & Water
Basic Chemical*
$ 1,200,000.00
Light & Water
Berdroia Renewables*
$ 800,000.00
Citywide
Best, Best & Krieger*
$ 20,000.00
Light & Water
Birthinee Electric*
$ 74,000.00
Information Services
Bi -Tech*
$ 50,000.00
Light & Water
Bonneville Power*
$ 300,000.00
Light & Water
Burbank, City of*
$ 25,000.00
Information Services
CDWG*
$ 28,000.00
Engineering
Calif. Dept. of Transportation*
$ 2,000,000.00
Light & Water
Calif. Dept. Water Resources*
$ 4,000,000.00
Light & Water
California Independent Systems Operator*
$ 15,000.00
Economic Dev.
California Shopping Cart Return*
$ 10,000.00
Light & Water
Calpine Energy*
$ 24,999.00
Police
Cingular
$ 14,000.00
Light & Water
Cintas*
$ 10,000.00
Information Services
CivicPlus*
$ 100,000.00
Light & Water
Clearwater Pipeline Inc.*
$ 90,000.00
Light & Water
Civitec Engineering Inc. *
$ 24,999.00
Light & Water
Clinical Lab of San Bernardino*
$ 11,499.99
Light & Water
Coastline Equipment*
$ 30,000.00
Human Resources
Cohen, Jay*
$ 200,000.00
Light & Water
Colburn, Thomas*
$ 104,820.00
Public Works
Comeland Maintenance*
$ 24,999.00
Police
Communications Center
$ 10,000.00
Human Resources
Community Action EAP*
10,000.00
Public Works
Community Auto Body*
50,000.00
Light & Water
Conoco Phillips*
50,000.00
Light & Water
Constellation Energy Commodies Group*
10,000.00
Public Works
Covina Rents Inc.*
31,800.00
Police
DSD
31,800.00
Information Services
DSD*
11,000.00
Police
Debilio Distribution
10,500.00
Garage
Dick's Auto Supply*
10,000.00
Public Works
Dunn Edwards Corp.*
87,000.00
Light & Water
Dynergy Power Marketing Inc.*
30,950.00
Light & Water
E & L Landscape Services*
90,000.00
Citywide
Economy Auto Center*
12,000.00
Light & Water
Eisel Enterprises*
37,500.00
Police
EI Monte, City of
60,000.00
Human Resources
Employment Development Dept.*
14,000.00
Light & Water
E -Signal*
10,000.00
Transportation
Fleet Services Specialists*
140,000.00
Transportation
Foothill Transit Authority*
22,000.00
Light & Water
Foster Corp., R. C.*
10,000.00
Public Works
Four S/Traffic Marking Supply*
10,000.00
Light & Water
Fulbright Jaworski*
500,000.00
Light & Water
Garnet Energy Corp.*
200,000.00
Light & Water
General Pump Co., Inc.*
12,000.00
Public Works
Glenn's Refrigeration*
20,400.00
Information Services
Granicus*
12,000.00
Light & Water
Haaker Equipment Co.*
18,500.00
Information Services
HDL Software*
20,000.00
Streets
Hi -way Safety*
50,000.00
Public Works
Holiday Rock*
65,000.00
Citywide
Home Depot*
10,000.00
Public Works
Hose Man*
24,999.00
Light & Water
Hunter Electric*
15,000.00
Public Works
Hydrex Pest Control*
15,000.00
Recreation/Parks
Hydro Connections
35,000.00
Human Resources
ICA *
10,000.00
Public Works
ICI Dulux Paint Center*
15,000.00
Public Works
Immediate Response*
295,000.00
Light & Water
Infosend*
10,000.00
Light & Water
Inland Desert Security & Communications*
37,500.00
Light & Water
Integrity*
50,000.00
Light & Water
International Flow Technologies Inc.*
18,000.00
Citywide
Iron Mountain Storage
20,000.00
Human Resources
Irwindale Industrial Clinic*
20,000.00
Light & Water
Itron Inc.*
60,000.00
Recreation/Parks
J & J Sports & Trophies
125,000.00
Human Resources
KLF Consulting*
10,000.00
Public Works
K V Blueprint*
3,792,275.00
Police
LACO Fire Dept.
12,000.00
Police
LACO Sheriffs Department
30,000.00
Engineering
L.A. County Dept. of Public Works*
75,000.00
Streets
La Works/Human Svc. Consortium*
50,000.00
Police
L.A. County Superior Court
28,000.00
Public Works
Labor Ready*
47,200.00
Finance
Lance, Soll, Lunghard
50,000.00
Light & Water
Lehman Brothers*
15,000.00
Public Works
Lewis Saw & Lawnmower*
40,000.00
Library
Library & Associates
150,000.00
Light & Water
Los Angeles Dept. Water Power*
10,000.00
Light & Water
McAvoy & Markham*
1,750,000.00
Light & Water
Main S.G.V. Watermaster*
150,000.00.
Human Resources
Manning & Marder*
15,000.00
Police
Manning & Marder
10,000.00
Public Works
Marx Bros. Fire Ext.*
15,000.00
Information Services
Matrix Imaging
15,000.00
Light & Water
May Tool*
16,380.00
Police
McNeil Alarm Services*
40,000.00
Economic Dev.
Melad & Associates*
125,000.00
Transportation
Metrolink*
800,000.00
Light & Water
Morgan Stanley Capital Corp.*
99,000.00
Senior Programs
Morrison's Food Services
20,752.00
Police
Motorola
50,000.00
Citywide
Nextel*
15,000.00
Public Works
Nixon Egli*
300,000.00
Light & Water
Northern Calif. Power Agency*
850,000.00
Light & Water
NRG Energy*
14,000.00
Light & Water
Ontario Refrigeration*
11,000.00
Light & Water
Open Access Technology International*
20,000.00
Engineering
P.A. & Associates*
20,000.00
Public Works
Pacific Mobile Services*
180,000.00
Light & Water
Pasadena, City of*
15,000.00
Public Works
Pat's Tire Service*
20,000.00
Light & Water
Performance Meter*
15,000.00
Streets
Pervo Paint*
29,999.00
Light & Water
Preventive Mobile*
39,500.00
Light & Water
Proforma Quality Printing*
10,000.00
Public Works
Pro Pipe*
800,000.00
Light & Water
Public Service Co. of New Mexico*
420,000.00
Light & Water
Radiant Energy Sources*
10,000.00
Light & Water
Reliable Equipment*
800,000.00
Light & Water
Reliant Energy Svcs.*
300,000.00
Light & Water
Riverside, City of*
99,000.00
Engineering
Republic Electric*
10,000.00
Public Works
Roadline Products*
71,000.00
Light & Water
SC Fuels*
150,000.00
Public Works
SC Fuels*
520,000.00
Light & Water
Sager, G.M.*
2,500,000.00
Light & Water
Salt River Project*
211,805.00
Police
San Gabriel , City of
150,000.00
Light & Water
San Gabriel Basin Water Master*
45,000.00
Light & Water
San Gabriel River Water*
10,000.00
Public Works
Sass Company*
800,000.00
Light & Water
Sempra Energy Training*
5,000,000.00
Light & Water
Shell Trading*
15,000.00
Public Works
Simplex Grinnel*
24,000.00 Information Services Sirsi*
20,000.00
Light & Water
Smith & Sons, R.E.*
60,000.00
Facilities
So. Cal Gas Company*
70,000.00
Light & Water
So. Calif. Edison Company*
1,800,000.00
Light & Water
So. Calif. Edison Company*
980,000.00
Public Works
So. Calif. Edison Company*
17,500,000.00
Light & Water
So. Calif. Public Power Authority*
350,000.00
Citywide
So. Cal Uniform Rental*
30,000.00
Public Works
Southeast Concrete*
40,000.00
Light & Water
Southwest Graphics*
980,000.00
Engineering
Southern Calif. Edison*
30,000.00
Streets
Spragues Ready Mix*
28,000.00
Information Services
Sprint*
10,000.00
Public Works
Street Wize*
50,000.00
Light & Water
Structure Group, The*
100,000.00
Light & Water
Summitt Research Labs*
24,900.00
Transportation
Sureteck Inc.*
130,000.00
Light & Water
Systems & Software*
25,000.00
Engineering
TECS Enviornmental*
18,000.00
Public Works
Teletronic Alarm Service*
20,000.00
Public Works
TMS Restoration*
10,000.00
Public Works
Tool Team*
10,000.00
Public Works
Traffic Control*
10,000.00
Light & Water
Tucker, J.G. & Son*
15,000.00
Public Works
Tucker, J.G. & Son*
15,000.00
Police
Turbo Data
50,000.00
Light & Water
UBS AG*
200,000.00
Light & Water
United Pumping Service*
20,000.00
Public Works
United Traffic Service*
1,000,000.00
Light & Water
Upper S.G.V. Municipal Water District*
18,000.00
Police
Verizon Wireless
30,000.00
Information Services
Verizon*
10,000.00
Public Works
Vista Paint*
25,000.00
Public Works
Voyager*
20,000.00
Public Works
Vulcan/Cal-Mat*
50,000.00
Light & Water
Vulcan/Cal-Mat*
427,035.00
Police
Wackenhut Corp.
100,000.00
Human Resources
Warren & Assoc.*
143,000.00
Light & Water
West Coast Arborists*
350,000.00
Recreation/Parks
West Coast Arborists
30,000.00
Light & Water
Westerly Meter Service Co.*
35,000.00
Light & Water
Western Area Power Admin.*
300,000.00
Light & Water
Western Water Works*
10,000.00
Economic Dev.
Willdan & Associates*
25,000.00
Citywide
Y Tire Sales*
10,000.00
Facilities
Zumar Industries*
REDEVELOPMENT AGENCY BLANKETS $10,000 AND OVER
400,000.00 Redev. Best, Best & Krieger
325,000.00 Redev. Redevelopment Consultant Services TBD
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT B. GARCIA, CHIEF OF POLICE
VIA: F.M. DELACH, CITY MANAGERAQ
DATE: JUNE 1512009
SUBJECT: AUTHORIZE THE POLICE DEPARTMENT TO ENTER INTO A
MEMORANDUM OF UNDERSTANDING (MOU) ACCEPTING THE
EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG)
RECOMMENDATION
It is recommended that the City Council authorize the mayor and staff to sign the attached MOU
between jurisdictions and the City of Los Angeles for the Recovery Act — Edward Byrne
Memorial JAG program. The grant award for the City of Azusa is $93,571.53.
BACKGROUND
This is a non-competitive Federal grant program, but will be administered by the City of Los
Angeles as the "Lead Agency" for our geographic area. As the Lead Agency, the City of Los
Angeles will charge a 10% administrative fee to the City of Azusa and all other agencies
participating in this area.
The Recovery Act JAG grant application was submitted to the Department of Justice, Bureau of
Justice Assistance on May 18, 2009. As a requirement of this grant, all 79 jurisdictions must
enter into one MOU. A draft of the MOU was submitted to DOJ with the grant application and
is the approved version of the MOU.
Please also note that the cities of Avalon and Industry have declined participation and as a result,
their collective monies have been redistributed to all remaining cities by percentage according to
the original disbursement. Therefore, the original $93,347 City Council was noticed on April 13,
1
2009 as our grant award was increased to $93,571.53. All disparate cities and the County are
signing one MOU with sep4ate signature pages.
k
It is anticipated that the funds from this grant will be utilized to procure the following equipment:
1. Graffiti Tracker system
2. Electronic evidence tracking/management system
3. Infrastructure for future in -car video system
However, City Council will also receive agenda items where any expenditure utilizing these
funds exceeds $10,000 consistent with established purchasing requirements.
The equipment outlined above are being sought to assist the Police Department meet the goals
and objectives set forth by the City Council.
FISCAL IMPACT
Although there is no initial impact to the City's general fund, maintenance and/or upgrades to the
items purchased will have to be addressed in the future.
Prepared by:
Captain Sam Gonzalez
2
MEMORANDUM OF UNDERSTANDING BETWEEN
JURISDICTIONS AND THE CITY OF LOS ANGELES
RECOVERY ACT JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD
This Memorandum of Understanding ("MOU") is made and entered into this 1 st day of
July 2009, by and among the City of Los Angeles, acting by and through its governing
body, the City Council ("CITY"), and each of the jurisdictions and entities, severally and
not jointly, whose names are set forth on Exhibit A attached hereto and whose
signatures to this MOU are attached hereto, each acting by and through its respective
governing body (which jurisdictions and entities are hereinafter collectively referred to
as "Jurisdictions" and each individually as a "Jurisdiction"), the City and the Jurisdictions
being located in Los Angeles County, State of California.
WITNESSETH
WHEREAS, this MOU is authorized pursuant to Section 23005 of the
Government Code; and
WHEREAS, this MOU is authorized by the Los Angeles City Council and the
Mayor of Los Angeles (refer to Council File 09-0648-S5 dated May 22, 2009) and the
Jurisdiction's respective governing body (i.e. its City Council and Mayor or Board of
Supervisors); and
WHEREAS, the United States Department of Justice, Office of Justice Programs'
Bureau of Justice Assistance ("BJA") administers the U.S. Department of Justice,
Recovery Act Edward Byrne Memorial Justice Assistance Grant,("JAG") Program; and
WHEREAS, BJA requires a Memorandum of Understanding ("MOU") between
the Jurisdiction and City prior to allocating JAG funds; and
WHEREAS, each governing body, in performing governmental functions or in
paying for the performance of governmental functions hereunder, shall make that
performance or those payments from current revenues legally available to that party;
and
WHEREAS, each governing body finds that the performance of this MOU is in
the best interests of both parties, that the undertaking will benefit the public, and that the
division of costs fairly compensates the performing party for the services or functions
under this MOU; and
WHEREAS, the CITY agrees to serve as the applicant/fiscal agent for the JAG
funds allocated to the Jurisdiction and to provide the Jurisdiction with the amount of
JAG funds approved by BJA for use as approved by BJA under the American Recovery
and Reinvestment Act of 2009 (the "Recovery Act");
NOW THEREFORE, the Jurisdiction and CITY agree as follows:
Recovery Act JAG MOU 1 06/09
Section 1
The term of this MOU shall commence on March 1, 2009 and end February 28, 2012.
Said term is subject to the provisions herein.
Section 2
Exhibit A to this MOU sets forth the amount of JAG funds allocated to each Jurisdiction
by BJA. Upon the disbursement by BJA to the City of JAG funds allocated to the
Jurisdiction, the CITY agrees to disburse to the Jurisdiction that amount set forth on
Exhibit A as the "Disbursement Amount" for the Jurisdiction. The Disbursement Amount
is the amount of JAG funds allocated to the Jurisdiction by BJA less 10% of such
allocated amount to be retained by the City as compensation to the City for its role as
applicant/fiscal agent of such JAG funds. The Jurisdiction agrees to use the JAG funds
for those projects approved by BJA under the Recovery Act and the JAG program as
set forth in the application for the JAG funds submitted by the City to BJA. Prior to
disbursement of the Disbursement Amount of JAG funds to the Jurisdiction, the
Jurisdiction agrees to enter into a contract with the City setting forth the Jurisdiction's
and the City's assurances and obligations regarding the use of JAG funds, which shall
include without limitation compliance with all applicable laws and reporting requirements
under the Recovery Act in connection with the use of the JAG funds (the "Contract").
Section 3
Nothing in the performance of this MOU shall impose any liability for claims against the
Jurisdiction other then claims for which liability may be imposed by the California Tort
Claims Act, or claims by the State or Federal Government for unallowable expenditure
of the funds provided by this MOU.
Section 4
Nothing in the performance of this MOU shall impose any liability for claims against
CITY other than claims for which liability may be imposed by the California Tort Claims
Act, or claims by the State or Federal Government for unallowable expenditure of the
funds provided by this MOU.
Section 5
Funding for all periods of this MOU is subject to the continuing availability of Federal
funds for this program. The MOU may be terminated immediately upon written notice to
the Jurisdiction of a loss or reduction of Federal grant funds. Any change in the terms of
this MOU, including any increase or decrease in the amount of JAG funds awarded,
shall be incorporated into this MOU by a written amendment properly executed and
signed by the person authorized to bind the parties.
Section 6
Upon the disbursement of funds to the Jurisdiction, the Jurisdiction shall provide
performance reports on a quarterly basis demonstrating progress in achieving desired
goals and outcomes in a form and manner as required under the JAG program and the
Recovery Act. Such reporting requirements shall also be set forth in the Contract,
which shall also provide dates on which these reports shall be submitted to the CITY.
Recovery Act JAG MOU 2 06109
Section 7
Each of the parties to this MOU is a public entity. In contemplation of the provisions of
Section 895.2 of the Government Code of the State of California imposing certain tort
liability jointly upon public entities, solely by reason of such entities being parties to an
MOU as defined by Section 895 of said Code, the parties hereto, as between
themselves, pursuant to the authorization contained in Section 895.4 and 895.6 of said
Code, will each assume the full liability imposed upon it or upon any of its officers,
agents, or employees by law, for injury caused by a negligent or wrongful act or
omission occurring in the performance of this MOU, to the same extent that such liability
would be imposed in the absence of Section 895.2 of said Code. To achieve the above
stated purpose, each party indemnifies and holds harmless the other party solely by
virtue of said Section 895.2. The provision of Section 2778 of the California Civil Code is
made a part hereto as if fully set forth herein. The Jurisdiction certifies that it has
adequate self insured retention of funds to meet any obligation arising from this MOU.
CITY also certifies that it has adequate self-insured retention of funds to meet any
obligation arising from this MOU.
Each party to this MOU will be responsible for its own actions in providing services
under this MOU and shall not be liable for any civil liability that may arise from the
furnishing of the services by the other party.
Section 8
The parties to this MOU warrant that they will abide by all the Federal, State and other
governmental rules and regulations applicable to the JAG funds and the Recovery Act.
The Jurisdiction shall be liable to the City, as fiscal agent, for any sums spent under the
JAG grant found to be ineligible by the State or Federal government. The Jurisdiction
shall cooperate and assist the City in any audit, or administrative or judicial actions
brought by the State or Federal government concerning the activities funded by this
MOU.
Section 9
The parties to this MOU do not intend for any third party to obtain a right by virtue of this
MOU.
Section 10
By entering into this MOU, the parties do not intend to create any obligations express or
implied other than those set out herein. Further, this MOU shall not create any rights in
any party not a signatory hereto.
Section 11
This MOU may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument.
Recovery Act JAG MOU 3 06/09
IN WITNESS WHEREOF, the governing bodies of the parties hereto have
authorized the foregoing Memorandum of Understanding between the Jurisdiction
whose execution is set forth below and the City of Los Angeles to be executed on the
1 st day of July 2009.
CITY OF APPROVED AS TO FORM:
(NAME AND Title) (JURISDICTION)
In
Date:
ATTEST:
(NAME AND Title)
By:
(Title)
Date
(NAME AND Title)
By:
Date:
(Title)
Attach City Seal Below:
CITY OF LOS ANGELES Attach City Seal Below:
ANTONIO R. VILLARAIGOSA, Mayor
By:
Date:
APPROVED AS TO FORM:
CITY OF LOS ANGELES ATTEST:
ROCKARD J. DELGADILLO, City Attorney JUNE A. LAGMAY, City Clerk
M
Deputy City Attorney
Date:
M
Deputy City Clerk
Date:
Council File/CAO Number 09-0648-S5 Date: May 22, 2009
Said MOU is Number of City Contracts
Recovery Act JAG MOU 4
06/09
EXHIBIT A
JURISDICTION
ALLOCATED
AMOUNT
10%
DEDUCTION
DISBURSEMENT
AMOUNT
AGOURA HILLS CITY
$21,764.22
$2,176.42
$19,587.80
ALHAMBRA CITY
$143,455.23
$14,345.52
$129,109.70
ARCADIA CITY
$71,330.16
$7,133.02
$647197.14
ARTESIA CITY
$47,500.98
$4,750.10
$421750.88
AZUSA CITY
$93,571.53
$9,357.15
$84,214.38
BALDWIN PARK CITY
$152,033.81
$15,203.38
$136,830.43
BELL CITY
$79,908.74
$7,990.87
$71,917.87
BELL GARDENS CITY
$124,391.48
$12,439.15
$111,952.33
BELLFLOWER CITY
$241,157.67
$24,115.77
$217,041.90
BEVERLY HILLS CITY
$67,676.39
$6,767.64
$60,908.75
BURBANK CITY
$122,644.29
$12,264.43
$110,379.86
CARSON CITY
$328,533.33
$32,853.33
$295,680.00
CERRITOS CITY
$77,049.88
$7,704.99
$69,344.90
CLAREMONT CITY
$37,333.58
$3,733.36
$337600.23
COMMERCE CITY
$65,611.44
$6,561.14
$59,050.29
COMPTON CITY
$798,455.93
$79,845.59
$718,610.33
COVINA CITY
$95,318.72
$9,531.87
$85,786.85
CUDAHY CITY
$61,322.14
$6,132.21
$55,189.93
CULVER CITY
$90,553.29
$9,055.33
$81,497.96
DIAMOND BAR CITY
$55,284.66
$5,528.47
$492756.19
DOWNEY CITY
$224,794.40
$22,479.44
$202,314.96
DUARTE CITY
$45,117.26
$4,511.73
$40,605.53
EL MONTE CITY
$321,701.94
$32,170.19
$289,531.74
EL SEGUNDO CITY
$16,839.41
$1,683.94
$15,155.47
GARDENA CITY
$230,354.75
$23,035.47
$207,319.27
GLENDALE CITY
$173,639.66
$17,363.97
$156,275.69
GLENDORA CITY
$33,679.82
$3,367.98
$30,311.83
HAWAIIAN GARDENS CITY
$71,489.54
$7,148.95
$64,340.59
HAWTHORNE CITY
$303,114.34
$30,311.43
$272,802.90
HERMOSA BEACH CITY
$28,595.62
$2,859.56
$25,736.05
HUNTINGTON PARK CITY
$275,472.01
$27,547.20
$247,924.81
INGLEWOOD CITY
$499,471.50
$49,947.15
$449,524.35
IRWINDALE CITY
$10,643.54
$1,064.35
$9,579.19
LA CANADA FLINTRIDGE CITY
$11,438.45
$1,143.84
$10,294.60
LA MIRADA CITY
$55,284.66
$5,528.47
$49,756.19
LA PUENTE CITY
$113,430.18
$11,343.02
$102,087.16
LA VERNE CITY
$33,202.67
$3,320.27
$29,882.40
LAKEWOOD CITY
$196,198.79
$19,619.88
$176,578.91
LANCASTER CITY
$599,080.52
$59,908.05
$539,172.47
LAWNDALE CITY
$104,374.45
$10,437.45
$93,937.01
LOMITA CITY
$50,995.37
$5,099.54
$45,895.83
LONG BEACH CITY
$1,627,573.43
$162,757.34
$1,464,816.09
***LOS ANGELES
$14,313,589.02
$1,431,358.90
$12,882,230.12
***LOS ANGELES COUNTY
$3,579,707.65
$357,970.77
$3,221,736.89
LYNWOOD CITY
$332,027.71
$33,202.77
$298,824.94
MALIBU CITY
$11,438.45
$1,143.84
$10,294.60
Recovery Act JAG MOU 5 06/09
MANHATTAN BEACH CITY
$27,642.33
$2,764.23
$24,878.10
MAYWOOD CITY
$75,778.83
$7,577.88
$68,200.95
MONROVIA CITY
$64,658.15
$6,465.81
$58,192.33
MONTEBELLO CITY
$127,409.72
$12,740.97
$114,668.75
MONTEREY PARK CITY
$80,862.03
$8,086.20
$72,775.83
NORWALK CITY
$261,650.84
$26,165.08
$235,485.76
PALMDALE CITY
$488,351.82
$48,835.18
$439,516.64
PARAMOUNT CITY
$209,384.43
$20,938.44
$188,445.98
PASADENA CITY
$342,830.64
$34,283.06
$308,547.57
PICO RIVERA CITY
$148,538.42
$14,853.84
$133,684.58
POMONA CITY
$591,772.98
$59,177.30
$532,595.68
RANCHO PALOS VERDES CITY
$20,017.03
$2,001.70
$18,015.33
REDONDO BEACH CITY
$98,020.20
$9,802.02
$88,218.18
ROSEMEAD CITY
$113,906.32
$11,390.63
$102,515.69
SAN DIMAS CITY
$39,716.30
$3,971.63
$35,744.67
SAN FERNANDO CITY
$58,303.90
$5,830.39
$52,473.51
SAN GABRIEL CITY
$98,496.35
$9,849.63
$88,646.71
SANTA CLARITA CITY
$174,751.32
$17,475.13
$157,276.19
SANTA FE SPRINGS CITY
$68,947.44
$6,894.74
$62,052.70
SANTA MONICA CITY
$275,949.15
$27,594.92
$248,354.24
SIGNAL HILL CITY
$30,660.57
$3,066.06
$27,594.51
SOUTH EL MONTE CITY
$64,498.77
$6,449.88
$58,048.89
SOUTH GATE CITY
$255,772.74
$25,577.27
$230,195.46
SOUTH PASADENA CITY
$19,063.74
$1,906.37
$17,157.37
TEMPLE CITY
$36,698.06
$3,669.81
$33,028.25
TORRANCE CITY
$161,565.68
$16,156.57
$145,409.12
VERNON CITY
$23,353.04
$2,335.30
$21,017.73
WALNUT CITY
$23,353.04
$2,335.30
$21,017.73
WEST COVINA CITY
$184,442.58
$18,444.26
$165,998.32
WEST HOLLYWOOD CITY
$157,118.01
$15,711.80
$141,406.21
WHITTIER CITY
$152,510.96
$15,251.10
$137,259.86
***Los Angeles City and Los Angeles County will pool together their respective
disbursement amounts and allocate from such pool $14,103,967.01 to be used for the
Los Angeles Regional Interoperable Communications System ("LA-RICS"). The
remainder of the $2,000,000 from such pool after the allocation will be split evenly
between them for their respective use as approved under the JAG Grant.
The 10% deduction from all other jurisdictions will be added to the City's total for
Management and Administration of the grant for a total of $1,623,493.50.
Recovery Act JAG MOU 6 06/09
IN WITNESS WHEREOF, the governing bodies of the parties hereto have
authorized the foregoing Memorandum of Understanding between the Jurisdiction
whose execution is set forth below and the City of Los Angeles to be executed on the
1 st day of July 2009.
CITY OF Azusa APPROVED AS TO FORM:
Joseph R. Rocha Sonia Carvalho
Mayor, City of Azusa City Attorney
By: By:
(Title)
Date: Date:
ATTEST:
Vera Mendoza
City Clerk
By:
(Title)
Date:
Attach City Seal Below:
CITY OF LOS ANGELES Attach City Seal Below:
ANTONIO R. VILLARAIGOSA, Mayor
By:
Date:
APPROVED AS TO FORM:
CITY OF LOS ANGELES ATTEST:
ROCKARD J. DELGADILLO, City Attorney JUNE A. LAGMAY, City Clerk
By: By:
Deputy City Attorney Deputy City Clerk
Date: Date:
Council File/CAO Number 09-0648-S5 Date: May 22, 2009
Said MOU is Number of City Contracts
Recovery Act JAG MOU 4 04/09
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: TITO HAES, PUBLIC WORKS DIRECTOR/ASSISTANT CITY MANAGER
VIA: F.M. DELACH, CITY MANAGER.1'N
DATE: JUNE 15, 2009
SUBJECT: AGREEMENT RENEWAL WITH LA WORKS FOR FY 2009/10
RECOMMENDATION
It is recommended that the City Council approve and execute the attached agreement with LA Works for
Fiscal Year 2009/10 in an amount not to exceed $57,087.
BACKGROUND
The City of Azusa has maintained a Beautification Program with LA Works for 27 years. The program
has benefited the City by providing a supervisor and crew to perform various roadway related
maintenance tasks including but not limited to the following; weed abatement in the public right-of-way,
curb painting, alley clean-up, etc. The City has realized outstanding results from this program. It enables
our own crews to concentrate on skilled labor tasks (concrete curb and gutter repairs, asphalt patching,
etc) while other less skilled but necessary maintenance tasks are performed by LA Works.
This year, LA Works has offered to provide more than double the "Total Working Days of Service" than
previous years at a reduced cost. Last year, LA Works provided 95 Total Working Days of Service for
$31,338. In FY 2009-2010, LA Works has offered to provide 224 Total Working Day of Service for
$57,087. This agreement will provide for a work crew composed of 1 skilled supervisor and 3-4
trainees. The following is a cost/service comparison between last year's and this year's program:
FY 08/09 FY 09/10
Program Cost $85,339 $175,304
WIA Offset ($54,001) ($118,217)
Total Cost to Azusa $311338 $5707
Total Working Days of Service 95 224
FISCAL IMPACT
The funds to cover the cost of this agreement are budgeted in FY 2009-2010 from Public Works -
Roadway Streets Maintenance, account #12-55-661-000-6493.
Attachments: LA Works Agreement
LA WORKS
COMMUNITY BEAUTIFICATION PROGRAM
AGREEMENT
On this day of July, 2009, East San Gabriel Valley Consortium d.b.a. LA
Works, 5200 Irwindale Ave., Irwindale, California, hereinafter referred to as "LA
Works", and the City of Azusa, 213 E. Foothill Blvd., Azusa, California, hereinafter
referred to as "City" enter into this Agreement.
Scope of Services
The purpose of this program is to provide weed abatement, debris clean-up, public
facility painting, and assistance to the public works department as requested by the City.
City Responsibilities
A. Contract with and fund LA Works to perform the services as described above.
B. City shall pay LA Works for services rendered in twelve (12) monthly
periodical payments, not to exceed $57,087.
LA Works Responsibilities
A. Provide the City with a crew composed of one skilled supervisor and WIA
trainees.
B. Perform work assignments as designated by the Public Work Director of the
City of Azusa or his designee.
C. The LA Works Crew will provide a vehicle and incur operating (maintenance
& gas) expenses.
D. LA Works will procure and maintain for the duration of the agreement, and
any amendments thereto, automobile liability insurance for the vehicle for
injuries to persons or damages to property that may arise from LA works use
of the vehicle. LA works shall maintain limits no less than one million dollars
($1,000,000) for bodily injury and property damages, combined single limit,
per occurrence and aggregate. LA Works shall obtain endorsements to the
policies providing the above insurance adding the following three provisions.
1. "The City and its elected and appointed boards, officers, agents and
employees are additional insured with respect to the subject
Agreement."
1I4a�1'o
2. "Said policy shall not terminate, nor shall it be cancelled nor the
coverage be reduced, until thirty days after written notice is given to
the City of Azusa."
3. "Any other insurance maintained by the City of Azusa shall be excess
and not contributing with the insurance provided by this policy."
Independent Contractor
LA Works and any employees of LA Works are acting as independent contractors and
not as agents or employees of the City. LA Works and their employees shall not represent
or otherwise hold themselves out of any of its directors, officers, partners, employees, or
agents to be agents or employees of the City. LA Works and LA Works employees shall
obtain no rights to retirement benefits or other benefits, including, but not limited to,
medical, health, life or disability, which may accrue to City employees.
Authority to Enter Agreement
LA Works has all the requisite power and authority to conduct, execute, deliver and
perform the services described in this Agreement. Each part warrants that the individuals
who have signed this Agreement have legal power, right and authority to make this
Agreement and bind each respective party.
Term of Performance
Said services of LA Works will commence on July 1, 2009 and shall be completed no
later than June 30, 2010.
LA Works shall provide 224 working days of service to the City. Service days include
work completed by WIA Youth crews during the period of July 1, 2009 to June 30, 2010.
In addition, LA Works shall credit the City with five (5) days of inclement weather (non -
service) days during the contract year. LA Works reserves the right to count all other
inclement weather (non -service) days occurring thereafter, as part of the 224 days of
service.
Compensation and Method of Pa ent
For performance of such service, the City will pay LA Works an amount of money not
exceeding $57,087 which payment shall constitute the full and complete compensation
for LA Works' services under this Agreement. The City shall periodically draw a warrant
on behalf of LA Works upon receipt of an itemized invoice conforming to the budget.
2 1 P a g e
Budget
Community Beautification Services - Consists of 224 days of service plus the operational
vehicle costs totaling $57,087 (see budget for details)
Program Evaluation and Review
LA Works shall make available for inspection its performance, financial and all other
records pertaining to the performance of this Agreement to authorized City personnel,
and shall issue such financial and program reports as requested by the City.
Termination
Either party may terminate this agreement by giving written notice of at least thirty (30)
days prior to the effective termination date.
This agreement may be modified at any time by mutual consent, but such modification
must be in written form and signed by the authorized representative of each.
Indemnification
LA Works shall indemnify, defend and hold harmless the City from any claim, judgment,
liability, loss or expense, including attorney's fees, court costs and necessary or
convenient disbursements, for any damage whatsoever, including but not limited to,
death, bodily injury or damage to property, proximately resulting from or arising out of,
any act or omission of LA Works, its officers, employees, agents or contractors in the
performance of this Agreement.
Mayor Date
Authorized Representative
City of Azusa
Chief Executive Officer Date
Authorized Representative
LA Works
31Page
Azusa Community Beautifcation
Proposed Budget
no_in
09-10 Budgets -3 cities 4/15/2009
I I
Estimated Cost for period July 1, 2009 to June 30, 2010
Option 1 -Cost Reimbursement for full-time crew 224 days
I
City of Azusa
Direct Personnel Costs
Rate/1
Annual
Hour
Cost
Salary Crew Supervisor I (step 5) 1
18.33
$ 38,135
Fringe -Health, dental, life ins, PERS,
Disability Ins,Workers Comp,SUI,SDI.
6.49
$ 13,506
Participants - 4 crew members
8.00
$ 57,344
FICA and Workers Comp.
4.44
$ 9,232
Total Direct Personnel Costs
$ 118,217
I
Operational Costs
Vehicle
Purchased - financed over 3 years
$ 9,972
Insurance
(
$ 2,680
Operating (inc. Maint and Gas)
$ 6,164
Program
9
Uniforms & Tools
3 542
$ ,
I
Admin
$ 34,728
Total Operational Costs
$ 57,087
i
TOTAL COST
$ 175,304
Subsidized by LA Works
$ (118,217)
I
TOTAL COST TO CITY
$ 57,087
09-10 Budgets -3 cities 4/15/2009
* VV-WM 7 *
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: TITO HAES, PUBLIC WORKS DIRECTOR/ASSISTANT CITY MANAGER
VIA: F.M. DELACH, CITY MANAGER/#L^"
DATE: JUNE 15, 2009
SUBJECT: AWARD OF CONTRACT — PUBLIC WORKS ADMINISTRATION BUILDING
FURNITURE
RECOMMENDATION
It is recommended that the City Council award a contract to D&R Office Works of El Monte in an
amount of $22,986.69 for the purchase and installation of furniture.
BACKGROUND
On June I" the City Council approved a Notice of Completion for the "Light Building Remodel"
project. This building was once used by the Light Division and later vacated in 2005. The building will
now house the Public Works administration and engineering staff. Furniture will be required for the
various offices, workstations, reception area and conference room.
Quotes were attained from the following:
D&R Office Works (EI Monte) $22,986.69
Michael E. Powers & Associates (Azusa) $23,707.86
Office Furniture Group (Irvine) $37,788.15
D&R Office Works has provided outstanding quality furniture in the past for the City of Azusa.. more
recently they furnished the basement conference room and IT Division.
FISCAL IMPACT
Expenditure is budgeted from Light Building Remodel CIP #73009F.
JOINT CITY/AGENCY
PUBLIC HEARING ITEM
TO: THE HONORABLE MAYOR/CHAIRPERSON AND COUNCIL/AGENCY MEMBERS
awe
FROM: KURT E. CHRISTIANSEN, ECONOMIC AND COMMUNITY DEVELOPMENT
DIRECTOR
VIA: F.M. DELACH, CITY MANAGER/EXECUTIVE DIRECTOR/l,"
DATE: JUNE 15, 2009
SUBJECT: FIRST AMENDMENT TO THE 2008 DISPOSITION AND DEVELOPMENT
AGREEMENT WITH TARGET CORPORATION FOR THE DEVELOPMENT OF A
TARGET STORE AT 809 NORTH AZUSA AVENUE
RECOMMENDATION
It is recommended that:
1) The City Council adopt a resolution approving the First Amendment to the 2008 Disposition and
Development Agreement; and
2) The Agency Board Adopt the Redevelopment Agency Resolution Approving the First Amendment to
the 2008 Disposition and Development Agreement with Target Corporation ("Target").
BACKGROUND
On February 6, 2007, the Agency entered into a Letter of Intent with Target Corporation for the
development of a Target at 809 North Azusa Avenue. The proposed Target was to be an "urban style"
Target designed to serve as downtown department store anchor. On July 23, 2008, the Planning
Commission found that the sale of the Target Site is in conformance with the General Plan. On September
2, 2008 the City Council held the second reading of the zoning ordinances and adopted the resolutions
approving the Target development project. The Agency entered into a Disposition and Development
Agreement with Target on December 15, 2008 for the construction of an approximately 159,000 square foot
urban style Target Department Store.
The proposed First Amendment to the 2008 Disposition and Development Agreement contains the
following modifications;
Honorable Chairperson & Agency Board
June 15, 2009
Amended Target DDA
Page 2 of 3
➢ Section 2.1.1 of the Agreement is hereby amended to read in its entirety as follows:
Developer shall obtain the CEC Commitment no later than October 16, 2009 ("Commitment Period").
Developer shall provide Agency with notice immediately upon Developer's receipt of the CEC
Commitment. Developer shall open the Escrow within five business (5) days of its receipt of the CEC
Commitment and proceed with the acquisition and development of the Project pursuant to the terms of
this Agreement.
➢ Section 2.2.2 of the Agreement is hereby amended to read in its entirety as follows:
Developer shall have thirty-five (35) days from the date of the written notice to obtain the CEC
Commitment and open the Escrow.
➢ Section 2.2.3 of the Agreement is hereby amended to read in its entirety as follows:
If Developer fails to obtain CEC Commitment and open the Escrow during the said thirty-five (35)
days, Agency may terminate this Agreement and pursue any other development project or disposition of
the Property without liability to the Developer.
➢ Exhibit "C" of the Agreement, Schedule of Performance, is hereby amended and replaced in its
entirety with Attachment 1 to this First Amendment, Revised Schedule of Performance
THE PROJECT
The proposed project is a two-story, 159,000 square foot, Target Department Store with 420 parking spaces
on the ground floor. The ground -floor parking area is enclosed by arched building supports with access to
the parking lot from Azusa Avenue, Ninth Street and San Gabriel Avenue. There will be an eating area in
the front of the store with large windows looking out onto Azusa Avenue. The exterior walls of the building
are articulated with varying building heights, second floor setbacks and decorative architectural details, to
create a structure that will complement the existing eclectic mix of buildings types in this area. The exterior
will be further accented with vine pockets and vine trellises/plantings, as well as with landscaped balconies,
windows and billboard -style displays on the building walls along Azusa Avenue, Ninth Street and San
Gabriel Avenue.
Pedestrian -oriented streetscape amenities, such as decorative benches, trash receptacles and lighted tree
grates will be provided along the sidewalks on Azusa Avenue, Ninth Street and San Gabriel Avenue. The
decorative lampposts and lighted sidewalk bollards, as well as the river rock pedestals currently found on
Azusa Avenue, will also extend along the south side of Ninth Street and along the San Gabriel side of the
project, to continue the existing "Downtown Streetscape Design".
FIRST AMENDMENT TO THE 2008 DISPOSITION & DEVELOPMENT AGREEMENT (DDA
AMENDMENT)
The Redevelopment Agency of the City of Azusa has been working to redevelop downtown Azusa and has
negotiated this First Amendment to the 2008 Disposition and Development Agreement with Target
Corporation for the development of a Target store that would serve to anchor downtown revitalization
efforts in Azusa. The DDA Amendment has been finalized and incorporates all modified Project details and
Honorable Chairperson & Agency Board
June 15, 2009
Amended Target DDA
Page 3 of 3
Project deal points. The Amendment does not require a new 33433 report as the modifications to the First
Amendment do not impact that analysis and are not related to the cost of the project.
FISCAL IMPACT
There is no impact with the proposed DDA Amendment. The 2008 DDA provides that the Redevelopment
Agency will receive $7,000,000 for the property that was appraised at $6,100,000. In that the financial
terms of the agreement are unchanged, the fiscal impact remains the same as the original adoption of
December 15, 2008: as follows: total land acquisition and tenant settlement costs to the Agency inclusive of
demolition and remediation was $18,521,334.
Acquisition of Al Parcels
Summary of Current Projected Costs
Weiss
Diaz
Moritz/Kouyoumdjian MTA Parcel
110-190 9th St.
809 Azusa
802 San Gabriel
Property
$7,520,000
$400,000
$2,000,000
$448,834
Fixtures/Equipment
$2,243,740
$176,000
$410,415
Relocation
$2,009,000
$80,000
$471,085
Goodwill
$1,879,760
$114,000
$468,500
Total
$13,652,500
$770,000
$3,350,000 F'
$448,834
Total Acquisition Costs
$13,652,500
$770,000
$3,350,000
$448,834
Demolition & Remediation (All Parcels)
$300,000
Total All Parcels
$18,521,334
Attachments:
1. Target Project EIR — document available on city website at
http://www.ci.azusa.ca.us/documentcenterii.asp
2. First Amendment to the 2008 Disposition and Development Agreement by and among the
Redevelopment Agency of the City of Azusa a Public Body, and Target Corporation.
3. A Resolution Of The City Council Of The City Of Azusa, California, approving the First
Amendment to the 2008 Disposition and Development Agreement; and
4. A Resolution Of The Governing Board Of The Redevelopment Agency Of The City Of Azusa,
California, Approving A First Amendment to the 2008 Disposition and Development Agreement
By And Between The Redevelopment Agency Of The City Of Azusa and Target Corporation,
For The Merged Central Business District and West End Redevelopment Project Area
RESOLUTION NO.
A RESOLUTION OF THE GOVERNING BOARD OF THE
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA,
CALIFORNIA, APPROVING A FIRST AMENDMENT TO
THE 2008 DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN THE REDEVELOPMENT
AGENCY OF THE CITY OF AZUSA AND TARGET
CORPORATION
WHEREAS, pursuant to the California Community Redevelopment Law (Health &
Safety Code Sections 33000, et seq.) ("CRL"), the City Council of the City of Azusa ("City")
approved and adopted a Redevelopment Plan ("Redevelopment Plan") for the redevelopment
Project Area known as the Merged Central Business District and West End Redevelopment
Project Area ("Project Area"); and
WHEREAS, the Governing Board ("Board) of the Redevelopment Agency of the City of
Azusa ("Agency") is engaged in activities to implement the Redevelopment Plan for the Project
Area pursuant to the provisions of the CRL; and
WHEREAS, the Agency has negotiated the terms of that certain First Amendment to the
2008 Disposition and Development Agreement (Target Project) ("Agreement") with Target
Corporation ("Developer") for the disposition and development of certain real property
("Property") as a Target store ("Project") including approximately 159,000 square feet of
commercial space as set forth in the Agreement; and
WHEREAS, the Agency has prepared, and the City Council has reviewed and
considered, a summary report pursuant to CRL Section 33433 ("Summary") setting forth: (1) the
cost of the Agreement to the Agency; (2) the estimated value of the interest to be conveyed; and
(3) an explanation of how the acquisition and conveyance of the Property will assist in the
elimination of blight within the Project Area, and has made the Summary available for public
inspection in accordance with CRL Section 33433; and
WHEREAS, a copy of the Agreement is on file at the City's Redevelopment Department;
and
WHEREAS, pursuant to CRL Section 33431, on May 29, 2009 and June 4, 2009, the
City caused notice of a joint public hearing of the City Council and the Agency's Governing
Board to be published in The San Gabriel Valley Tribune and The Herald, respectively, both
newspapers of general circulation within the Agency's territorial jurisdiction; and
WHEREAS, pursuant to CRL Section 33433, the Agency may, with the consent of the
City Council, approve the sale of the Property to the Developer for development of the Project in
accordance with the Agreement if the City Council makes certain findings following a noticed
public hearing; and
1
WHEREAS, pursuant to provisions of CRL Section 33433, the City Council and the
Agency's Governing Board held a duly noticed joint public hearing on the proposed Project and
on the proposed Agreement; and
WHEREAS, this amendment does not require a new 33433 report as the modifications to
the deal in the First Amendment do not impact that analysis and are not related to the cost of the
project.
WHEREAS, the Agency is the lead agency concerning the Project pursuant to the
California Environmental Quality Act ("CEQA") and the State CEQA Guidelines; and
WHEREAS, the City staff has reviewed the General Plan and Development Code
Environmental Impact Report ("EIR") prepared by the City as well as the Target Project EIR
("Target EIR") certified on August 4, 2008 for this Project in particular and has determined that
the EIR and the Target EIR adequately evaluated the impacts of the development of the Project
and the impacts of the proposed development in the Project Area.
NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the
Redevelopment Agency of the City of Azusa as follows:
Section 1. The Governing Board hereby directs Agency staff to file a Notice of
Determination with the Los Angeles County Clerk's office within three (3) calendar days of the
adoption of this Resolution.
Section 2. The Governing Board approves the Agreement together with non -substantive
changes and amendments as may be approved by both the Executive Director and Agency
Counsel.
Section 3. The Governing Board hereby authorizes and directs the Executive Director to
take any action and execute any documents necessary to implement the Agreement.
Section 4. The Agency Secretary shall certify to the passage and adoption of this
resolution and the same shall thereupon take effect and be in force immediately upon its
adoption.
APPROVED AND ADOPTED this 15t ` day of June, 2009.
ATTEST:
Agency Secretary
Chair of the Redevelopment Agency
of the City of Azusa
2
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Redevelopment Agency of the City of Azusa at a regular meeting held on the 15th day of June,
2009.
AYES:
AGENCY MEMBERS:
NOES:
AGENCY MEMBERS:
ABSTAIN:
AGENCY MEMBERS:
ABSENT:
AGENCY MEMBERS:
Agency Secretary
W
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, APPROVING A FIRST
AMENDMENT TO THE 2008 DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
AND TARGET CORPORATION
WHEREAS, pursuant to the California Community Redevelopment Law (Health &
Safety Code Sections 33000, et seq.) ("CRL"), the City Council of the City of Azusa ("City")
("City Council") approved and adopted a Redevelopment Plan ("Redevelopment Plan") for the
redevelopment Project Area known as the Merged Central Business District and West End
Redevelopment Project Area ("Project Area"); and
WHEREAS, the Governing Board ("Board) of the Redevelopment Agency of the City of
Azusa ("Agency") is engaged in activities to implement the Redevelopment Plan for the Project
Area pursuant to the provisions of the CRL; and
WHEREAS, the Agency has negotiated the terms of that certain First Amendment to the
2008 Disposition and Development Agreement (Target Project) ("Agreement") with Target
Corporation ("Developer") for the disposition and development of certain real property
("Property") as a Target store ("Project") including approximately 159,000 square feet of
commercial space as set forth in the Agreement; and
WHEREAS, pursuant to Government Code Section 65402, the Planning Commission of
the City has determined that the Project is in conformance with the City's General Plan; and
WHEREAS, the Agency has prepared, and the City Council has reviewed and
considered, a summary report pursuant to CRL Section 33433 ("Summary") setting forth: (1) the
cost of the Agreement to the Agency; (2) the estimated value of the interest to be conveyed; and
(3) an explanation of how the acquisition and conveyance of the Property will assist in the
elimination of blight within the Project Area, and has made the Summary available for public
inspection in accordance with CRL Section 33433; and
WHEREAS, a copy of the Agreement is on file at the City's Redevelopment Department;
WHEREAS, pursuant to CRL Section 33431, on May 29, 2009 and June 4, 2009, the
City caused notice of a joint public hearing of the City Council and the Agency's Governing
Board to be published in The San Gabriel Valley Tribune and The Herald, respectively, both
newspapers of general circulation within the Agency's territorial jurisdiction; and
WHEREAS, pursuant to CRL Section 33433, the Agency may, with the consent of the
City Council, approve the sale of the Property to the Developer for development of the Project in
accordance with the Agreement if the City Council makes certain findings following a noticed
public hearing; and
WHEREAS, pursuant to provisions of CRL Section 33433, the City Council and the
Agency's Governing Board held a duly noticed joint public hearing on the proposed Project and
on the proposed Agreement; and
WHEREAS, this amendment does not require a new 33433 report as the modifications to
the deal in the First Amendment do not impact that analysis and are not related to the cost of the
project.
WHEREAS, the City is the responsible agency concerning the Project pursuant to the
California Environmental Quality Act ("CEQA") and the State CEQA Guidelines; and
WHEREAS, the City staff has reviewed the General Plan and Development Code
Environmental Impact Report ("EIR") prepared by the City as well as the Target Project EIR
("Target EIR") certified on August 4, 2008 for this Project in particular and has determined that
the EIR and the Target EIR adequately evaluated the impacts of the development of the Project
and the impacts of the proposed development in the Project Area.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa as
follows:
Section 1. The City Council hereby directs City staff to file a Notice of Determination
with the Los Angeles County Clerk's office within three (3) calendar days of the adoption of this
Resolution.
Section 2. The City Council hereby finds and determines that the disposition and
development of the Property will assist in the elimination of blight for the reasons set forth in the
Summary.
Section 3. The City Council hereby finds and determines that the development of the
Property pursuant to the Agreement is consistent with the Implementation Plan adopted for the
Project Area pursuant to Section 33490.
Section 4. The City Council hereby finds and determines the consideration paid by the
Developer to the Agency for the Property is not less than the fair re -use with the covenants,
conditions and development costs authorized by the sale for reasons set forth in the Summary.
Section 5. The City Council hereby approves the Agreement together with non -
substantive changes and amendments as may be approved by the City Manager and the City
Attorney.
Section 6. The City Council hereby authorizes and directs the City Manager and the City
Attorney to take any action and execute any documents necessary to implement the Agreement.
Section 7. The City Clerk shall certify to the passage and adoption of this resolution and
the same shall thereupon take effect and be in force immediately upon its adoption.
APPROVED AND ADOPTED this 15'b day of June, 2009.
Mayor of the City of Azusa
ATTEST:
City Clerk
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City
Council of the City of Azusa at a regular meeting held on the 15th day of June, 2009.
AYES:
NOES:
ABSTAIN:
ABSENT:
City Clerk of the City of Azusa
FIRST AMENDMENT TO THE
2008 DISPOSITION AND DEVELOPMENT AGREEMENT
(TARGET STORE REDEVELOPMENT PROJECT)
BY AND BETWEEN
THE
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
A PUBLIC BODY, CORPORATE AND POLITIC,
AND
TARGET CORPORATION
A MINNESOTA CORPORATION
[DATED AS OF JUNE 15, 2009 FOR REFERENCE PURPOSES ONLY]
#860674v2
FIRST AMENDMENT
TO
2008 DISPOSITION AND DEVELOPMENT AGREEMENT
(Target Project)
THIS FIRST AMENDMENT TO 2008 DISPOSITION AND DEVELOPMENT
AGREEMENT (Target Project) (this "First Amendment') is entered into as of , 2009
("First Amendment Effective Date"), by and between the AZUSA REDEVELOPMENT
AGENCY, a public body, corporate and politic (the "Agency"), and Target Corporation, a
Minnesota corporation (the "Developer"), to amend that certain 2008 Disposition and
Development Agreement (Target Project), dated as of November 24, 2008, by and between the
Agency and the Developer (the "Agreement'), with reference to the following facts:
RECITALS
A. The Agency and the Developer previously entered into the Agreement for the
purchase, sale and development of that certain real property located in the City of Azusa,
California, and more particularly described in the Agreement as the "Property;" and
B. The Developer intends to develop the Property, and certain other real property
adjacent thereto, as an approximately 155,000 square foot retail building located above two
levels of parking ("Project"), as generally depicted in the conceptual site plan on the Site Map
attached to the Agreement as Exhibit "A-2"; and
C. Pursuant to the Agreement, Developer must obtain the CEC Commitment prior to
expiration of Commitment Period, which is currently July 6, 2009; and
D. The Agency and the Developer hereby wish to extend the Commitment Period
from July 6, 2009 until October 16, 2009.
NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES SET FORTH IN
THIS FIRST AMENDMENT AND OTHER VALUABLE CONSIDERATION, THE AGENCY
AND THE DEVELOPER AGREE AS FOLLOWS:
1. Incorporation of Recitals. The Recitals of fact set forth above are true and correct
and are incorporated into this First Amendment by this reference, as though fully set forth in this
First Amendment.
2. Incorporation of Defined Terms. All terms, phrases and words indicated to be
defined terms by initial capitalization in this First Amendment that are not specifically defined in
this First Amendment shall have the meaning ascribed to the same term, phrase, or word in the
Agreement.
2
#860674v2
3. Effect of First Amendment. Except as set forth in this First Amendment, the
Agreement is, in all other respects, confirmed and all of the terms, provisions and conditions of
the Agreement, as amended by this First Amendment, shall be and remain in full force and
effect. From and after the First Amendment Effective Date, wherever the term "Agreement"
appears in the Agreement, it shall be read and understood to mean the Agreement, as amended
by this First Amendment.
4. Amendments to Specific Provisions of the Agreement. The Agency and the
Developer mutually agree to specifically amend the Agreement as follows:
4.1 Section 2.1.1 of the Agreement is hereby amended in its entirety to read as
follows:
Developer shall obtain the CEC Commitment no later than October 16, 2009
("Commitment Period"). Developer shall provide Agency with notice immediately
upon Developer's receipt of the CEC Commitment. Developer shall open the Escrow
within five business (5) days of its receipt of the CEC Commitment and proceed with
the acquisition and development of the Project pursuant to the terms of this
Agreement.
4.2 Section 2.2.2 of the Agreement is hereby amended to read in its entirety as
follows:
Developer shall have thiry-five (35) days from the date of the written notice to obtain
the CEC Commitment and open the Escrow.
4.3 Section 2.2.3 of the Agreement is hereby amended to read in its entirety as
follows:
If Developer fails to obtain CEC Commitment and open the Escrow during the said
thirty-five (35) days, Agency may terminate this Agreement and pursue any other
development project or disposition of the Property without liability to the Developer.
4.4 Exhibit "C" of the Agreement, Schedule of Performance, is hereby amended
and replaced in its entirety with Attachment 1 to this First Amendment, Revised
Schedule of Performance.
5. Conflict. In the event of a conflict between the terms and conditions of this First
Amendment and the terms and conditions of the Agreement, the terms and conditions of this
First Amendment shall control.
6. Counterparts. This First Amendment may be executed in counterparts (including
facsimile counterparts), each of which shall be deemed an original, and all such counterparts,
when taken together, shall constitute one agreement.
7. Warranty Aeainst Payment of Consideration for First Amendment. The
Developer represents and warrants that: (i) the Developer has not employed or retained any
person to solicit or secure this First Amendment upon an agreement or understanding for a
R860674v2
commission, percentage, brokerage, or contingent fee, excepting bona fide employees of the
Developer; and (ii) no gratuities, in the form of entertainment, gifts or otherwise have been or
will be given by the Developer or any of its agents, employees or representatives to any elected
or appointed official or employee of either the City of Azusa or the Agency in an attempt to
secure this First Amendment or favorable terms or conditions for this First Amendment. Breach
of the representations or warranties of this Section 7 shall give the Agency the right to terminate
this First Amendment, with seven (7) days notice to the Developer. Upon any such termination
of this First Amendment, the Developer shall immediately refund any payments made to or on
behalf of the Developer by the City of Azusa or the Agency pursuant to or otherwise related to
this First Amendment, prior to the date of any such termination.
8. Relationship of Parties. The Parties each intend and agree that the Agency and
the Developer are independent contracting entities and do not intend by this First Amendment to
create any partnership, joint venture, or similar business arrangement, relationship or association
between them.
9. Non -liability of Officials, Employees and Agents. No elected official, employee,
representative or agent of the Agency shall be personally liable to the Developer, or any
successor in interest of the Developer, in the event of any default or breach by the Agency under
this First Amendment or for any amount that may be or become due to the Developer or any
successor in interest of the Developer, on any obligations under the terms or conditions of this
First Amendment.
10. Principles of Interpretation. No inference in favor of or against any Party shall be
drawn from the fact that such Party has drafted any part of this First Amendment. The Parties
have both participated substantially in the negotiation, drafting, and revision of this First
Amendment, with advice from legal and other counsel and advisers of their own selection.
11. Governing_ Law. The laws of the State of California shall govern the
interpretation and enforcement of this First Amendment, without application of conflicts of laws
principles.
12. Binding on Successors and Assigns. This First Amendment shall be binding upon
and inure to the benefit of the Parties and their respective legal representatives, successors and
assigns.
13. No Other Representations or Warranties. Except as expressly set forth in this
First Amendment, no Party makes any representation or warranty material to this First
Amendment to any other Party.
14. No Waiver. Failure to insist on any one occasion upon strict compliance with any
term, covenant, condition, restriction or agreement contained in this First Amendment shall not
be deemed a waiver of such term, covenant, condition, restriction or agreement, nor shall any
waiver or relinquishment of any rights or powers under this First Amendment, at any one time or
more times, be deemed a waiver or relinquishment of such right or power at any other time or
times.
rd
#560674v2
SIGNATURE PAGE
TO
FIRST AMENDMENT
TO
DISPOSITION AND DEVELOPMENT AGREEMENT
(TARGET PROJECT)
The Agency and the Developer have signed this First Amendment, by and through the
signatures of their authorized representatives, as follows:
AGENCY:
AZUSA REDEVELOPMENT AGENCY, a
public body, corporate and politic
Executive Director
Attest:
Agency Secretary
Approved as to form:
Best Best & Krieger LLP
Agency Counsel
#860674v2
DEVELOPER:
TARGET CORPORATION,
a Minnesota corporation
By: awv*-fl�
Name: Scott Felson
Its: r Vice P�Psident
arge (;0q)orat1jn
FIRST AMENDMENT
TO
DISPOSITION AND DEVELOPMENT AGREEMENT
(TARGET PROJECT)
ATTACHMENT 1
#560674N!2
REVISED
SCHEDULE OF PERFORMANCE
A. Days shall be calendar days, unless otherwise specified.
B. Where the action/task is to be performed by the City, the Agency shall exercise its
reasonable efforts to obtain performance by the City.
C. All specific dates set forth in parentheses in this schedule are estimates only and
not binding on the Parties.
D. In the event of any conflict between this schedule and the Agreement, the terms
and provisions of the Agreement shall control.
E. All defined terms indicated by initial capitalization used in this schedule shall
have the meanings ascribed to the same terms in the Agreement.
EVENT
TIME
Developer signs DDA
Before Agency consideration
Agency signs DDA
Within 10 days of approval by
Agency
-- j
Developer obtains CEC Commitment
No later than October 16, 2009
i
Escrow Opening Date
Within 5 business days of Developer's
receipt of CEC Commitment
Due Diligence Period
45 days following the Escrow Opening
Date
Escrow Closing Date
The earlier of (1) 30 business days
following the Escrow Holder's receipt
of written confirmation from
Developer and Agency of satisfaction
or waiver of all conditions precedent
to Close of Escrow or (2) 60 days from
the Escrow Opening Date
Developer obtains building permit for
_
Within 120 days of the Escrow
Improvements
Closing Date.
—
Within one month of receipt of
Developer commences construction of
building permit for Improvements. i
Improvements
Developer shall provide Agency with
quarterly reports to advise Agency of
construction progress
#860674v2
EVENT
TIME
Within one year of commencement of
Developer obtains certificate of
construction of Improvements.
occupancy for Improvements
("Occupancy Date")
Grand Opening to Public ("Final
Within 25 days after Occupancy Date.
Occupancy Date")
Agency issues Certificate of
Upon request of Developer pursuant to
Section 4.8 of the DDA
Completion
9860674v2
AGENCY AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AGENCY BOARD
sL
FROM: KURT E. CHRISTIANSEN�(ECONOMIC & COMMUNITY DEVELOPMENT
DIRECTOR
VIA: F. M. DELACH, EXECUTIVE DIRECTOR�W
DATE: JUNE 15, 2009
SUBJECT: CONSIDERATION OF A PURCHASE AND SALE AGREEMENT FOR THE
ACQUISITION OF REAL PROPERTY LOCATED AT 611 E. LIME AVENUE
(YOUNGSTROM)
RECOMMENDATION
It is recommended that the Redevelopment Agency Board of the City of Azusa ("Agency Board")
authorize the Executive Director to execute a Purchase and Sale Agreement ("PSA") for the
acquisition of real property located at 611 E. Lime Avenue (APN: 8612-001-040). It is also
recommended that the Agency Board adopt an acquisition resolution for this proposed purchase,
attached hereto as Exhibit B.
BACKGROUND
In order to eliminate blight in the Central Business District, the Agency Board adopted the Amended
and Restated Redevelopment Plan for the Merged Central Business District and West End
Redevelopment Project Area ("Project Area), in 2003. One vehicle for the elimination of blight is the
assemblage of improved, odd -shaped parcels into a single, larger "squared -off' parcel. Such
assemblage can have the economic benefit of. (a) eliminating any functional inefficiency or
obsolescence caused by the "odd -shaped" nature of a parcel, and (b) creating a larger parcel that can
accommodate certain projects (i.e. affordable housing developments) that smaller parcels would be
unable to accommodate due to their size.
Youngstrom Property
The property located at 611 E. Lime Avenue ("Youngstrom Property") is situated within the Project
Area, and consists of one parcel containing a residential quadruplex. The residential structure totals
3,554 square feet, and the site measures 6,787 square feet. The property is owned by James A.
Youngstrom ("Seller"). Assemblage of this parcel, with additional adjoining parcels, could produce a
single parcel available for a future affordable housing development.
The Honorable Chairman and Members of the Agency Board
Subject: Acquisition of 611 E. Lime Avenue
June 15, 2009
Page 2 of 2
At the direction of the Agency Board, Peter Meyers, MAI, from Joseph J. Blake & Associates, Inc.,
appraised the property on Junel, 2009, and determined its fair market value to be $615,000. Agency
staff and the property Seller, have negotiated, subject to Agency Board approval, a purchase price of
$660,000 (Exhibit "A": Youngstrom Purchase and Sale Agreement).
The purchase price constitutes full and complete satisfaction of the Agency Board's obligations, if
any, to provide Benefits to the Seller or Tenants and that the Seller shall compensate Tenants for any
Benefits Tenants may be entitled to pursuant to State law, including but not limited to California
Health and Safety Code section 33415, California Code of Civil Procedure section 1263.010, et seq.,
and/or California Government Code section 7260, et seq..
On April 6, 2009, the Azusa Planning Commission found the acquisition of the Youngstrom Property
to conform to the City of Azusa's General Plan.
FISCAL IMPACT
The total cost for the proposed acquisition is $660,000, excluding escrow costs (title report, etc). An
additional $125,000 is needed for hazardous material abatement, demolition, fencing, legal and
consulting fees. The proposed acquisition will be funded from the 2008 Housing Bonds.
Attachments:
Exhibit "A": 2009 REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT
ESCROW INSTRUCTIONS, (611 E. Lime), by and between Seller, James A.
Youngstrom and Buyer, The Redevelopment Agency of the City of Azusa, a public
body, corporate and politic
Exhibit `B": A Resolution of the Redevelopment Agency of the City of Azusa Approving a Purchase
And Sale Agreement with James A. Youngstrom for the Purchase of 611 E. Lime
Avenue (APN: 8612-001-040) in its Entirety Within the Merged Central Business
District and West End Redevelopment Project Area
EXHIBIT B
RESOLUTION NO.
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA APPROVING A PURCHASE AND SALE
AGREEMENT WITH JAMES A. YOUNGSTROM FOR THE
PURCHASE OF 611 E. LIME AVENUE (APN 8612-001-040) IN ITS
ENTIRETY WITHIN THE MERGED CENTRAL BUSINESS
DISTRICT AND WEST END REDEVELOPMENT PROJECT AREA
WHEREAS, the Redevelopment Agency of the City of Azusa ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan of the City of Azusa
("Redevelopment Plan") as it pertains to the Merged Central Business District And West End
Project Area ("Project Area"); and
WHEREAS, James A. Youngstrom ("Owner") are the owners of certain real property
located within the Project Area, generally described as 611 E. Lime Avenue (APN: 8612-001-040)
in its entirety ("Property"), and more particularly described in Exhibit "A" attached hereto and
incorporated herein by reference; and
WHEREAS, the Owner desires to sell the Property to the Agency and the Agency desires to
purchase the Property from the Owner in accordance with the terms and conditions set forth in the
purchase and sale agreement attached hereto as Exhibit B and incorporated herein by reference
("Agreement"); and
WHEREAS, the Agency is authorized to acquire the Property for purposes of
redevelopment pursuant to Section 33391 of the Community Redevelopment law (Health & Safety
Code § 33000, et seq); and
WHEREAS, the acquisition of the Property will assist the Agency's goal to revitalize and
improve the residential opportunities in the Project Area; and
WHEREAS, this Agreement pertains to and affects the ability of the Agency to finance its
activities and carry out its statutory obligations and the goals of the Redevelopment Plan. It is
intended to be a contract within the meaning of Government Code §53511; and
WHEREAS, in taking this action, the Agency has determined that the acquisition of the
property is not a "project" under the provisions of the California Environmental Quality Act, the
California Environmental Quality Act Guidelines (Title 14 C.C.R. §15004) and the City of Azusa's
environmental procedures.
NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the
Redevelopment Agency of the City of Azusa as follows:
SECTION 1. All of the Recitals set forth above are true and correct.
SECTION 2. Based on all of the foregoing, the Agency hereby approves the Agreement
for the purchase of certain real property generally located at 611 E. Lime Avenue (APN: 8612-001-
040) in its entirety more particularly described in Exhibit A, and attached hereto and incorporated
herein by reference. The Agency further authorizes the Executive Director to execute said
Agreement.
SECTION 3. A copy of the Agreement shall be kept on file at City Hall. Staff is directed
to do all that is necessary to effectuate the intent of the Agreement and consummate the purchase of
the Property.
SECTION 4. The Agency Secretary shall certify the adoption of this Resolution.
PASSED AND APPROVED this 15th day of June, 2009.
Chairman
I HEREBY CERTIFY that the foregoing Resolution was duly passed, approved, and
adopted by the Board of Directors of the Redevelopment Agency of the City of Azusa, at a
regular meeting of said Board held on the 15`h day of June, 2009, by the following vote of the
Board:
AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSTAIN: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
Secretary
Exhibit A
To PSA Resolution
Legal Description of Property
611 E. Lime Avenue
APN: 8612-001-040
Lot 31 of Tract 27346 in the City of Azusa, County of Los Angeles, State of California, as per
map recorded in Book 699, Page(s) 22 and 23 of Maps, in the Office of the County Recorder of
said County.
Exhibit B
To PSA Resolution
Real Property Purchase And Sale Agreement
Please See:
Exhibit "A" To The Staff Report Titled:
Consideration of a Purchase and Sale Agreement for the Acquisition of Real Property Located at
611 E. Lime Avenue
(Youngstrom)
Dated:
June 15, 2009
U �.
AGENCY AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AGENCY BOARD
ef- -
FROM: KURT E. CHRISTIANSEN,�t ECONOMIC & COMMUNITY DEVELOPMENT
DIRECTOR
VIA: F. M. DELACH, EXECUTIVE DIRECTOR*
DATE: JUNE 15, 2009
SUBJECT: CONSIDERATION OF A PURCHASE AND SALE AGREEMENT FOR THE
ACQUISITION OF REAL PROPERTY LOCATED AT 610 E. SIXTH STREET
(CASTRUITA)
RECOMMENDATION
It is recommended that the Redevelopment Agency Board of the City of Azusa ("Agency Board")
authorize the Executive Director to execute a Purchase and Sale Agreement ("PSA") for the
acquisition of real property located at 610 E. Sixth Street (APN: 8612-001-018). It is also
recommended that the Agency Board adopt an acquisition resolution for this proposed purchase,
attached hereto as Exhibit B.
BACKGROUND
In order to eliminate blight in the Central Business District, the Agency Board adopted the Amended
and Restated Redevelopment Plan for the Merged Central Business District and West End
Redevelopment Project Area ("Project Area), in 2003. One vehicle for the elimination of blight is the
assemblage of improved, odd -shaped parcels into a single, larger "squared -off' parcel. Such
assemblage can have the economic benefit o£ (a) eliminating any functional inefficiency or
obsolescence caused by the "odd -shaped" nature of a parcel, and (b) creating a larger parcel that can
accommodate certain projects (i.e. affordable housing developments) that smaller parcels would be
unable to accommodate due to their size.
Castruita Property
The property located at 610 E. Sixth Street ("Castruita Property") is situated within the Project Area,
and consists of one parcel containing a residential quadruplex. The residential structure totals 4,080
square feet, and the site measures 8,050 square feet. The property is owned by Ernest Castruita and
Elena B. Castruita, Trustees of the Castruita Family Trust dated May 3, 1998 ("Sellers"). Assemblage
of this parcel, with additional adjoining parcels, could produce a single parcel available for a future
affordable housing development.
The" Honorable Chairman and Members of the Agency Board
Subject: Acquisition of 610 E. Sixth Street
June 15, 2009
Page 2 of 2
lV
At the direction of the Agency Board, Peter Meyers, MAI, from Joseph J. Blake & Associates, Inc.,
appraised the property on June 1, 2009 and determined its fair market value to be $625,000. Agency
staff and the property Seller, have negotiated, subject to Agency Board approval, a purchase price of
$660,000 (Exhibit "A": Castruita Purchase and Sale Agreement).
The purchase price constitutes full and complete satisfaction of the Agency Board's obligations, if
any, to provide Benefits to the Seller or Tenants and that the Seller shall compensate Tenants for any
Benefits Tenants may be entitled to pursuant to State law, including but not limited to California
Health and Safety Code section 33415, California Code of Civil Procedure section 1263.010, et seq.,
and/or California Government Code section 7260, et seq..
On April 6, 2009, the Azusa Planning Commission found the acquisition of the Castruita Property to
conform to the City of Azusa's General Plan.
FISCAL IMPACT
The total cost for the proposed acquisition is $660,000, excluding escrow costs (title report, etc). An
additional $125,000 is needed for hazardous material abatement, demolition, fencing, legal and
consulting fees. The proposed acquisition will be funded from the 2008 Housing Bonds.
Attachments:
Exhibit "A": 2009 REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT
ESCROW INSTRUCTIONS, (610 E. Sixth), by and between Seller, Ernest Castruita
and Elena B. Castruita, Trustees of the Castruita Family Trust dated May 3, 1998, and
Buyer, The Redevelopment Agency of the City of Azusa, a public body, corporate and
politic
Exhibit `B": A Resolution of the Redevelopment Agency of the City of Azusa Approving a Purchase
And Sale Agreement with Ernest Castruita and Elena B. Castruita, Trustees of the
Castruita Family Trust dated May 3, 1998, for the Purchase of 610 E. Sixth Street
(APN: 8612-001-018) in its Entirety Within the Merged Central Business District and
West End Redevelopment Project Area
EXHIBIT B
RESOLUTION NO.
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA APPROVING A PURCHASE AND SALE
AGREEMENT WITH ERNEST CASTRUITA AND ELENA B.
CASTRUITA FOR THE PURCHASE OF 610 E. SIXTH STREET
(APN 8612-001-018) IN ITS ENTIRETY WITHIN THE MERGED
CENTRAL BUSINESS DISTRICT AND WEST END
REDEVELOPMENT PROJECT AREA
WHEREAS, the Redevelopment Agency of the City of Azusa ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan of the City of Azusa
("Redevelopment Plan") as it pertains to the Merged Central Business District And West End
Project Area ("Project Area"); and
WHEREAS, Ernest Castruita and Elena B. Castruita, Trustees of the Castruita Family
Trust dated May 3, 1998, ("Owner") are the owners of'certain real property located within the
Project Area, generally described as 610 E. Sixth Street (APN: 8612-001-018) in its entirety
("Property"), and more particularly described in Exhibit "A" attached hereto and incorporated
herein by reference; and
WHEREAS, the Owner desires to sell the Property to the Agency and the Agency desires to
purchase the Property from the Owner in accordance with the terms and conditions set forth in the
purchase and sale agreement attached hereto as Exhibit B and incorporated herein by reference
("Agreement"); and
WHEREAS, the Agency is authorized to acquire the Property for purposes of
redevelopment pursuant to Section 33391 of the Community Redevelopment law (Health & Safety
Code § 33000, et seq); and
WHEREAS, the acquisition of the Property will assist the Agency's goal to revitalize and
improve the residential opportunities in the Project Area; and
WHEREAS, this Agreement pertains to and affects the ability of the Agency to finance its
activities and carry out its statutory obligations and the goals of the Redevelopment Plan. It is
intended to be a contract within the meaning of Government Code §53511; and
WHEREAS, in taking this action, the Agency has determined that the acquisition of the
property is not a "project" under the provisions of the California Environmental Quality Act, the
California Environmental Quality Act Guidelines (Title 14 C.C.R. § 15004) and the City of Azusa's
environmental procedures.
NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the
Redevelopment Agency of the City of Azusa as follows:
SECTION 1. All of the Recitals set forth above are true and correct.
SECTION 2. Based on all of the foregoing, the Agency hereby approves the Agreement
for the purchase of certain real property generally located at 610 E. Sixth Street (APN: 8612-001-
018) in its entirety more particularly described in Exhibit A and attached hereto and incorporated
herein by reference. The Agency further authorizes the Executive Director to execute said
Agreement.
SECTION 3. A copy of the Agreement shall be kept on file at City Hall. Staff is directed
to do all that is necessary to effectuate the intent of the Agreement and consummate the purchase of
the Property.
SECTION 4. The Agency Secretary shall certify the adoption of this Resolution.
PASSED AND APPROVED this 15`' day of June, 2009.
Chairman
I HEREBY CERTIFY that the foregoing Resolution was duly passed, approved, and
adopted by the Board of Directors of the Redevelopment Agency of the City of Azusa, at a
regular meeting of said Board held on the 15`x' day of June, 2009, by the following vote of the
Board:
AYES:
BOARDMEMBERS:
NOES:
BOARDMEMBERS:
ABSTAIN:
BOARDMEMBERS:
ABSENT:
BOARDMEMBERS:
Secretary
Exhibit A
To PSA Resolution
Legal Description of Property
610 E. Sixth Street
Lot 9 of Tract 27346 in the City of Azusa, County of Los Angeles, State of California, as per
map recorded in Book 699, Page(s) 22 and 23 of Maps, in the Office of the County Recorder of
said County.
Exhibit B
To PSA Resolution
Real Property Purchase And Sale Agreement
Please See:
Exhibit "A" To The Staff Report Titled:
Consideration of a Purchase and Sale Agreement for the Acquisition of Real Property Located at
610 E. Sixth Street
(Castruita)
Dated:
June 15, 2009
ilza7
AW
4wa 0
AGENCY AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AGENCY BOARD
Jo'
FROM: KURT E. CHRISTIANSEN,� ECONOMIC & COMMUNITY DEVELOPMENT
DIRECTOR
VIA: F. M. DELACH, EXECUTIVE DIRECTORA(i 2
DATE: JUNE 15, 2009
SUBJECT: CONSIDERATION OF A PURCHASE AND SALE AGREEMENT FOR THE
ACQUISITION OF REAL PROPERTY LOCATED AT 670 E. SIXTH STREET
(CASTRUITA)
RECOMMENDATION
It is recommended that the Redevelopment Agency Board of the City of Azusa ("Agency Board")
authorize the Executive Director to execute a Purchase and Sale Agreement ("PSA") for the
acquisition of real property located at 670 E. Sixth Street (APN: 8612-001-024). It is also
recommended that the Agency Board adopt an acquisition resolution for this proposed purchase,
attached hereto as Exhibit B.
BACKGROUND
In order to eliminate blight in the Central Business District, the Agency Board adopted the Amended
and Restated Redevelopment Plan for the Merged Central Business District and West End
Redevelopment Project Area ("Project Area), in 2003. One vehicle for the elimination of blight is the
assemblage of improved, odd -shaped parcels into a single, larger "squared -off' parcel. Such
assemblage can have the economic benefit of. (a) eliminating any functional inefficiency or
obsolescence caused by the "odd -shaped" nature of a parcel, and (b) creating a larger parcel that can
accommodate certain projects (i.e. affordable housing developments) that smaller parcels would be
unable to accommodate due to their size.
Castruita Property
The property located at 670 E. Sixth Street ("Castruita Property") is situated within the Project Area,
and consists of one parcel containing a residential quadruplex. The residential structure totals 3554
square feet, and the site measures 5,998 square feet. The property is owned by Ernest Castruita and
Elena B. Castruita ("Sellers"). Assemblage of this parcel, with additional adjoining parcels, could
produce a single parcel available for a future affordable housing development.
The Honorable Chairman and Members of the Agency Board
Subject: Acquisition of 670 E. Sixth Street
June 1 �,. 2009
Page 2 of 2
At the direction of the Agency Board, Peter Meyers, MAI, from Joseph J. Blake & Associates, Inc.,
appraised the property on June 1, 2009 and determined its fair market value to be $615,000. Agency
staff and the property Seller, have negotiated, subject to Agency Board approval, a purchase price of
$660,000 (Exhibit "A": Castruita Purchase and Sale Agreement).
The purchase price constitutes full and complete satisfaction of the Agency Board's obligations, if
any, to provide Benefits to the Seller or Tenants and that the Seller shall compensate Tenants for any
Benefits Tenants may be entitled to pursuant to State law, including but not limited to California
Health and Safety Code section 33415, California Code of Civil Procedure section 1263.010, et seq.,
and/or California Government Code section 7260, et seq..
On April 6, 2009, the Azusa Planning Commission found the acquisition of the Castruita Property to
conform to the City of Azusa's General Plan.
FISCAL IMPACT
The total cost for the proposed acquisition is $660,000, excluding escrow costs (title report, etc). An
additional $125,000 is needed for hazardous material abatement, demolition, fencing, legal and
consulting fees. The proposed acquisition will be funded from the 2008 Housing Bonds.
Attachments:
Exhibit "A": 2009 REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT
ESCROW INSTRUCTIONS, (670 E. Sixth), by and between Seller, Ernest Castruita
and Elena B. Castruita and Buyer, The Redevelopment Agency of the City of Azusa, a
public body, corporate and politic
Exhibit `B": A Resolution of the Redevelopment Agency of the City of Azusa Approving a Purchase
And Sale Agreement with Ernest Castruita and Elena B. Castruita for the Purchase of
670 E. Sixth Street (APN: 8612-001-024) in its Entirety Within the Merged Central
Business District and West End Redevelopment Project Area
EXHIBIT B
RESOLUTION NO.
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA APPROVING A PURCHASE AND SALE
AGREEMENT WITH ERNEST CASTRUITA AND ELENA B.
CASTRUITA FOR THE PURCHASE OF 670 E. SIXTH STREET
(APN 8612-001-024) IN ITS ENTIRETY WITHIN THE MERGED
CENTRAL BUSINESS DISTRICT AND WEST END
REDEVELOPMENT PROJECT AREA
WHEREAS, the Redevelopment Agency of the City of Azusa ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan of the City of Azusa
("Redevelopment Plan") as it pertains to the Merged Central Business District And West End
Project Area ("Project Area"); and
WHEREAS, Ernest Castruita and Elena B. Castruita ("Owner") are the owners of certain
real property located within the Project Area, generally described as 670 E. Sixth Street (APN:
8612-001-024) in its entirety ("Property"), and more particularly described in Exhibit "A" attached
hereto and incorporated herein by reference; and
WHEREAS, the Owner desires to sell the Property to the Agency and the Agency desires to
purchase the Property from the Owner in accordance with the terms and conditions set forth in the
purchase and sale agreement attached hereto as Exhibit B and incorporated herein by reference
("Agreement"); and
WHEREAS, the Agency is authorized to acquire the Property for purposes of
redevelopment pursuant to Section 33391 of the Community Redevelopment law (Health & Safety
Code § 33000, et seq); and
WHEREAS, the acquisition of the Property will assist the Agency's goal to revitalize and
improve the residential opportunities in the Project Area; and
WHEREAS, this Agreement pertains to and affects the ability of the Agency to finance its
activities and carry out its statutory obligations and the goals of the Redevelopment Plan. It is
intended to be a contract within the meaning of Government Code §53511; and
WHEREAS, in taking this action, the Agency has determined that the acquisition of the
property is not a "project" under the provisions of the California Environmental Quality Act, the
California Environmental Quality Act Guidelines (Title 14 C.C.R. § 15004) and the City of Azusa's
environmental procedures.
NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the
Redevelopment Agency of the City of Azusa as follows:
SECTION 1. All of the Recitals set forth above are true and correct.
SECTION 2. Based on all of the foregoing, the Agency hereby approves the Agreement
for the purchase of certain real property generally located at 670 E. Sixth Street (APN: 8612-001-
024) in its entirety more particularly described in Exhibit A, and attached hereto and incorporated
herein by reference. The Agency further authorizes the Executive Director to execute said
Agreement.
SECTION 3. A copy of the Agreement shall be kept on file at City Hall. Staff is directed
to do all that is necessary to effectuate the intent of the Agreement and consummate the purchase of
the Property.
SECTION 4. The Agency Secretary shall certify the adoption of this Resolution.
PASSED AND APPROVED this 15th day of June, 2009.
Chairman
I HEREBY CERTIFY that the foregoing Resolution was duly passed, approved, and
adopted by the Board of Directors of the Redevelopment Agency of the City of Azusa, at a
regular meeting of said Board held on the 15`h day of June, 2009, by the following vote of the
Board:
AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSTAIN: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
Secretary
Exhibit A
To PSA Resolution
Legal Description of Property
670 E. Sixth Street
APN: 8612-001-024
Lot 15 of Tract 27346 in the City of Azusa, County of Los Angeles, State of California, as per
map recorded in Book 699, Page(s) 22 and 23 of Maps, in the Office of the County Recorder of
said County.
Exhibit B
To PSA Resolution
Real Property Purchase And Sale Agreement
Please See:
Exhibit "A" To The Staff Report Titled:
Consideration of a Purchase and Sale Agreement for the Acquisition of Real Property Located at
670 E. Sixth Street
(Castruita)
Dated:
June 15, 2009
CITY OF AZUSA
MINUTES OF THE REDEVELOPMENT AGENCY
REGULAR MEETING
MONDAY, JUNE 1, 2009 — 7:50 P.M.
The Board of Directors of the Redevelopment Agency of the City of Azusa met in regular session at the
above date and time in the Azusa Auditorium, 213 E. Foothill Blvd., Azusa CA.
Chairman Rocha called the meeting to order.
ROLL CALL
PRESENT: DIRECTORS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
ABSENT: DIRECTORS: NONE
ALSO PRESENT:
General Counsel Carvalho, Executive Director Delach, Assistant Executive Director Makshanoff,
Department Heads, Secretary Mendoza, Deputy Secretary Toscano.
Call to Order
Roll Call
Also Present
CONVENE JOINTLY AS THE CITY COUNCIL, THE REDEVELOPMENT AGENCY AND Convene jntly
THE AZUSA PUBLIC FINANCING AUTHORITY TO CONSIDER THE FOLLOWING: City/CRA/APFA
FISCAL YEAR 2009/10 CITY, AZUSA PUBLIC FINANCING AUTHORITY, AND Budget Adoption
REDEVELOPMENT AGENCY BUDGET ADOPTION.
Administrative Services Chief Financial Officer Kreimeier presented the budget via power point A. Kreimeier
presentation which included all three entities, i.e City, Redevelopment and Azusa Public Financing Presentation
Authority budgets and responded to questions posed.
Councilmembers provided comments on the success of the budget and the excellent job performed by Council
staff. City Manager Delach responded to questions posed and thanked staff for their team effort and Comments
Council for their guidance and support.
Moved by Councilmember Carrillo, seconded by Mayor Pro -Tem Macias and unanimously to adopt:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, ADOPTING THE BUDGET Adoption of
AND APPROVING APPROPRIATIONS FOR THE CITY OF AZUSA FOR THE FISCAL YEAR City Budget
COMMENCING JULY 1, 2009 AND ENDING JUNE 30, 2010. Resolution No. 09-C38.
Moved by Board Member Carrillo, seconded by Board Member Hanks and unanimously to adopt:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE AZUSA PUBLIC FINANCING Adoption of
AUTHORITY ADOPTING THE BUDGET AND APPROVING APPROPRIATIONS FOR THE APFA Budget
AUTHORITY FOR THE FISCAL YEAR COMMENCING JULY 1, 2009 AND ENDING JUNE 30,
2010. Resolution No. 09-P1:
Moved by Director Gonzales, seconded by Director Hanks and unanimously to adopt:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF Adoption of
THE CITY OF AZUSA ADOPTING THE OPERATING BUDGET AND APPROVING CRA Budget
APPROPRIATIONS FOR THE REDEVELOPMENT AGENCY FOR THE FISCAL YEAR
COMMENCING JULY 1, 2009 AND ENDING JUNE 30, 2010. Resolution No. 09-R27.
THE REDEVELOPMENT AGENCY TO RECESSED, THE AZUSA PUBLIC FINANCING CRA Recessed
AUTHORITY TO ADJOURNED, AND CITY COUNCIL CONTINUED.
THE CITY COUNCIL AND REDEVELOPMENT AGENCY CONVENED JOINTLY AT 9:45 CRA Reconvened
P.M. TO DISCUSS THE FOLLOWING: Jointly w/Cncl
CITY AND AGENCY AGENDA ITEM
PROPOSED CITY AND REDEVELOPMENT AGENCY -WIDE POLICY REGARDING THE Policy re:
LEASING OF CITY AND REDEVELOPMENT AGENCY OWNED PROPERTY FOR RETAIL Leasing property
SALES EVENTS.
Economic and Community Development Director Christianson addressed the item stating that based on the K. Christianson
direction received from Council staff is proposing a hybrid option as noted in the staff report. Comments
Moved by Mayor Pro -Tem Macias, seconded by Councilmember Hanks and unanimously carried to Leasing Policy
establish a policy regarding the leasing of City and Redevelopment Agency owned property for retail sales Approved
events that allow entities affiliated with the City, service organizations that do not own property, and
groups providing proceeds directly to projects with in the City to lease property from the City for retail
sales.
AZUSA I-210 FREEWAY READER BOARD LEASE AGREEMENT AND SIGNAGE SALES Reader Board
AGREEMENT. Agreement
Assistant City Manager Makshanoff presented draft sales and lease agreements for the signage sales Assist City Mgr
and reader board, detailed its amenities, advised that a new Azusa Logo would be incorporated; the comments
purchase price is $450,000 with an interest rate of 5.5%, in five annual installments of $99,885.
Advertising sales would generate $24,000 a month and lose 15% in commission for sales company that
will be hired. An agreement for advertising will be brought back for consideration. He introduced
representatives from Encore Signs and Daktronics who will be providing and installing the sign. He
responded to questions posed by Councilmembers regarding color, size, maintenance, revenues earmarked,
possible maintenance of freeway on and off ramps, master lease agreement, etc.
Moved by Mayor Pro -Tem Macias, seconded by Councilmember Gonzales and unanimously to approve Agreements
the agreements in substantially the form presented and the City Manager, with the concurrence of the City Approved
Attorney, is authorized to fmalize the final documents.
THE CITY COUNCIL RECESSED AND THE REDEVELOPMENT AGENCY CONTINUED. City Council
Recessed
AGENCY SCHEDULED ITEMS
PUBLIC HEARING - CONSIDERATION OF A FIRST AMENDMENT TO A COMMERCIAL LEASE Agency Sched
AGREEMENT FOR AN AGENCY OWNED PARCEL LOCATED AT 803 NORTH DALTON pub Hr
AVENUE. g
803 N. Dalton
Economic and Community Development Director Christianson addressed the Hearing stating that a
lease has been negotiated with Mr. Ramirez until the end of October. K. Christianson
Comments
The Chairman declared the Hearing open. Secretary read the affidavit of proof of publication of notice Hrg open
of said hearing published in the Azusa Herald on May 14th and May 21, 2009.
Testimony was solicited, but none was received.
Testimony/none
Moved by Director Hanks, seconded by Director Carrillo and unanimously to authorize the Executive
Director to execute the First Amendment to the Commercial Lease Agreement - Ramirez. Com Lease
Approved Ramirez
CONSIDERATION OF A PURCHASE AND SALE AGREEMENT FOR THE ACQUISITION OF
REAL PROPERTY LOCATED AT 629 GLENFINNAN AVENUE (ARCE)PSA Acquire
629 Glenfmnan
Economic and Community Development Director Christianson addressed item presenting the Purchase and
Sale Agreement for property noted. K. Christianson
Comments
Moved by Director Hanks, seconded by Director Macias and unanimously to authorize the Executive
Director to execute a Purchase and Sale Agreement 'PSA" for the acquisition of real property PSA approved
gr ("PSA") 9 p perty located at
629 North Glenfinnan Avenue (APN: 8612-001-014) and adopt Resolution No. 09-R28, Approving the
acquisition.
06/01/09 PAGE TWO
Moved by Director Hanks, seconded by Director Macias and unanimously carried to adopt:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING A Res.09-R28
PURCHASE AND SALE AGREEMENT WITH EDGARDO R. ARCE AND NENETH SARINAS Appvg PSA
ARCE AKA MARINELL NENETH ARCE FOR THE PURCHASE OF 629 GLENFINNAN AVENUE Arce
IN ITS ENTIRETY WITHIN THE MERGED CENTRAL BUSINESS DISTRICT AND WEST END
REDEVELOPMENT PROJECT AREA. Resolution No. 09-R-28.
The CONSENT CALENDAR consisting of items H-1 through H-3 was approved by motion of Consent Cal.
Director Gonzales, seconded by Director Carrillo and unanimously carried. approved
1. Minutes of the regular meeting of May 4, 2009, were approved as written. Min appvd
2. The City Agency Treasurer's Report as of April 30, 2009, was received and filed. Treas Rpt
3. Two separate resolutions authorizing payment of warrants by the Agency was adopted and entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA Res. Nos. 09-R29.
ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF REDEVELOPMENT & 30, Warrants
AGENCY FUNDS.
SPECIAL CALL ITEMS
None
Spec Call Items
None
It was consensus of the Redevelopment Agency Board Members to adjourn. Adjourn
TIME OF ADJOURNMENT: 9:58 P.M.
SECRETARY
NEXT RESOLUTION NO. 09-R31.
06/01/09 PAGE THREE
AGENCY CONSENT ITEM
TO: THE HONORABLE CHAIRPERSON AND AGENCY MEMBERS
FROM: KURT E. CHRISTIANS EN, AICP, ECONOMIC AND COMMUNITY DEVELOPMENT
DIRECTOR
VIA: F.M. DELACH, EXECUTIVE DIRECTOR���
DATE: JUNE 15, 2009
SUBJECT: REDEVELOPMENT CONSULTING SERVICES FOR FISCAL YEAR 2009/10
RECOMMENDATION
It is recommended that the Agency Board approve Urban Futures, Inc. ("Urban Futures") to provide real
estate advisory and as -needed redevelopment consulting services in conjunction with the Agency's FY
2009/10 economic development program, and authorize the Executive Director to execute the City's
standard professional services agreement.
BACKGROUND
In April 2009, staff issued a request for proposal and qualifications (RFP) for real estate advisory and as -
needed redevelopment consulting services. The RFP was sent to ten firms. The following firms
submitted proposals:
• GRC Associates, Inc.
• Keyser Marston Associates
• The Ometeotl Group
• Rosenow Spevacek Group, Inc.
• Tierra West Advisors
• Urban Futures, Inc.
Two of the proposals, The Ometeotl Group and Tierra West Advisors were signed by the same principal.
This issue was discussed with both the City Attorney and the Redevelopment Agency Attorney. Based
on their advice, both The Ometeotl Group and Tierra West Advisors were disqualified from
consideration.
Five (5) staff members, independently, reviewed and evaluated the proposals based on Depth of staff;
experience working with a city structure and services provides provided to redevelopment agencies;
value of the services being provided; expertise and staffing capabilities; and knowledge of the City of
Azusa. Upon completion of the review and evaluation of the proposals, staff recommends the selection
Page i of z
June i5, zoo9
The Honorable Chairperson and Agency Members
Re: Redevelopment Consulting Services for Fiscal Year 2009/10
of Urban Futures based on the qualifications of its managing principals, William R. Kelly and Michael
Busch, and the three project team principals, Steve Dukett, Paul Schowalter, and David Gruchow, and
their overall experience in the redevelopment field- particularly in project financial feasibility and
economic evaluation.
The City Council policy is to utilize consultants whenever possible rather than hiring full time staff due
to the projected limited term of the current economic development program. Consultants have the
ability to mobilize quickly to undertake Council goals for the City and have very specific areas of
expertise which can augment City services. Urban Futures provided Bond Consulting services in 2008
and is familiar with the Merged Central Business District and West End Redevelopment Project Area.
They are a highly qualified firm and have done excellent work for the Agency. The Staff of Urban
Futures has extensive experience working as management staff within local jurisdictions and understand
the role of providing consulting services from the City's perspective. Therefore, staff requests that the
Agency Board approve Urban Futures to provide these ongoing redevelopment consulting services for
FY 2009/10.
FISCAL IMPACT
Real estate advisory and as -needed redevelopment consulting and staff support services have been
budgeted on a project -by -project basis in the amount of $325,000 as part of the FY 2009/10 budget, for
the Downtown North, Target, Block 36, Foothill Center, Northeast Corner of Azusa and Arrow, general
economic development assistance, and miscellaneous projects.
Attachments:
Urban Futures Proposal
IV
t� nzusn i
May 11, 2009
u
A Proposal to Provide Redevelopment Consulting
and Real Estate Advisory Services for the
Azusa Redevelopment Agency
Prepared By:
Urban Futures, Inc.
3111 North Tustin, Suite 230
Orange, CA 92865
www.urbanfuturesinc.com
May 11, 2009
May 11, 2009
Mr. Kurt Christiansen
Economic and Community Development Director
City of Azusa Redevelopment Agency
213 East Foothill Boulevard
Azusa, CA 91702-1395
Subject: Response to Request for Proposal - Redevelopment Consulting and Real Estate Advisory
Services
Dear Mr. Christiansen:
Urban Futures Inc. is pleased to respond to your RFP for redevelopment and real estate consulting
services. For this assignment, we offer your Redevelopment Agency a team of dedicated and well-
respected professionals who will assist the Agency in both its day-to-day activities and in strategically
planning for the future.
Urban Futures will bring a wealth of multi -disciplinary expertise to the Azusa Redevelopment Agency.
As you will see in our proposal, we have the in-house resources to help you with everything from bond
financing and implementation plans to plan amendments, housing and developer negotiations. Our
firm believes that the collaborative approach we employ to address our client's needs make us a
valuable tool for you to use in managing your Agency.
If you have any questions, please contact Bill Kelly, Managing Principal, at (714) 283-9334 or
williamk(a)urbanfuturesinc.com.
Sincerely,
UMIZ41
William R. Kelly
Managing Principal
■
3111 North Tustin, Suite 230 1 Orange, CA 92865 1 t: 714.283.9334 1 f: 714.283.5465
Table of Contents
Section1 - Introduction............................................................................................................... l
Section2 - Qualifications............................................................................................................2
Section3 - Project Team............................................................................................................4
Section4 - Client List.................................................................................................................. 9
Section5 - Hourly Rates......................................................................................................................................10
Section6 - Work Plan..........................................................................................................................................11
Urban Futures Inc. is pleased to submit this proposal to the City of Azusa to
provide consulting and real estate advisory services to the City's Redevelopment
Agency. We understand that the Agency is seeking on-going professional
expertise in all areas of the Agency's operation including assessing complex
redevelopment proposals, preparing Agency documents, negotiating
agreements, developing financial plans and alternatives, assisting in real estate
acquisition and relocation, and preparing long-range Agency strategies.
As this proposal will demonstrate, Urban Futures has been a recognized leader in
providing high quality redevelopment consulting services to agencies throughout
California. Although we're best known over the years for our creative financial
advisory practice, our multi -disciplinary approach makes Urban Futures a
valuable member of any team on any level.
We are committed to initiating, facilitating, and maintaining open, collaborative
communication with all parties. Urban Future's approach is characterized by the
following:
■ CURIOSITY Asking the right questions and engaging the right people
■ CLARITY- Being proactive in identifying issues, opportunities, and solutions
■ CREATIVITY - Being an advocate for comprehensive solutions and being
flexible with alternatives and choices
■ CONFIDENCE - Ensuring thorough, frequent, and regular communication
Our team will work hard to meet the needs of the Azusa Redevelopment Agency
and to help you achieve all of your Agency and community goals.
Qualifications
Urban Futures, Inc. (UFI) is a full service municipal consulting firm serving local
government primarily in the State of California. The firm was founded in 1972
and has existed in its, present form since 1974. It is the largest singularly owned,
municipal financial advisor/redevelopment consulting firm in the State. UFI is a
closely held California corporation with offices in the cities of Orange and San
Francisco, California.
Since our founding, UFI has served over 200 governmental entities in various
capacities. We have helped many California cities serve their businesses and
residents by working to create sound fiscal policies and management practices.
We look forward to sharing this expertise with the Azusa Redevelopment Agency.
Here is what we believe UFI "brings to the table":
• Extensive knowledge of Redevelopment that only comes from assisting in the
formation of Agencies and the adoption of project area plans and
amendments;
• A team of professionals with a combined 100+ years of redevelopment and
municipal finance experience;
• Analytic sophistication that fosters a multi -disciplinary approach to problem
solving regardless of project size or type; and
• Continuity of service; UFI is small enough so that there is never a break in the
client/professional network, yet large enough to offer a full range of services.
The greatest strength lies in the fact that our firm can combine these necessary
services into a comprehensive whole. This combination enables UFI to develop
a much greater depth of understanding of your community, hence increasing the
quality of the advice and service we will provide to the Azusa Redevelopment
Agency.
UFI offers public and private sector clients a wide range of specialized services
including finance, planning, redevelopment, and management. Our specific lines
of business include the following:
Financial Advisory Services
RDA Plan Adoptions & Amendments
Economic Development Services
RDA Implementation Plans
Project Negotiations
Fiscal Consultant Report Preparation
Real Estate Management
Single & Multifamily Housing Compliance
Continuing Disclosure Services
Management Advisory & Administration
WIN
-2
ME Qualifications
Currently, Urban Futures employs 40 individuals including 23 professionals and
17 paraprofessional and support staff. The firm's President and CEO, Marshall
Linn, continues to bring his 41 -years worth of experience, leadership and vision
to the company he founded.
The UFI Project Team that will be primarily responsible for serving the Azusa
Redevelopment Agency is highlighted in Section 3 of this proposal.
Even though UFI has expanded into many new areas of local government
consulting, our core practice still focuses on planning and redevelopment. We
have proudly served as advisor to numerous cities and redevelopment agencies
throughout the State. We have provided some of our references in Section 4 of
this proposal and encourage you to contact them regarding the quality of our
work.
If you consider UFI's proven track record and experience with redevelopment,
finance and economic consulting, you will agree that Urban Futures, Inc. is the
best qualified firm to assist the Azusa Redevelopment Agency. Urban Futures
has a better understanding of the needs of municipalities and their
redevelopment agencies than any other firm in the State.
E
IBM
Project Team
EDUCATION
B. S., City Planning, California State
Polytechnic University, Pomona
MPA, University of Southern California
MBA, MA Claremont Graduate
University
Doctoral Studies in Executive
Management, Claremont Graduate
University
YEARS OF EXPERIENCE
38
PROFESSIONAL
AFFILIATIONS
Academic Advisory Board, University of
Southern California, Graduate School of
Policy, Planning and Development
International City/County Management
Association (ICMA)
William R. Kelly
Managing Principal
WILLIAM R. ("Bill") KELLY, Managing Principal, will serve
as the Team Leader and primary point of contact for the
Azusa Redevelopment Agency. Mr. Kelly specializes in
economic development, redevelopment, planning and
organizational management. He has worked on numerous
complicated municipal projects, including public facility
bond issues and construction, negotiated complicated
economic development agreements, managed numerous
community outreach and focus sessions and has worked
with several cities and organizations developing and
implementing strategic plans.
Mr. Kelly joined Urban Futures in 2007 and previously
served as the City Manager of the City of Arcadia and
Executive Director of the Redevelopment Agency for 14
years. He has also held positions of Deputy City Manager,
Director of Community Development, Director of
Development Services, and Director of Planning and
Building for several California municipalities. He also has
been Chair of the LA County Emergency Medical Services
Commission and Vice Chair of the California State Attorney
General's Advisory Committee on the California Law
Enforcement Telecommunication System.
Mr. Kelly is an Adjunct Professor in the MPA program at
the University of Southern California and serves on the
Academic Advisory Board for the Graduate School of
Policy, Planning and Development.
Key Projects and Accomplishments Include:
• City of Arcadia: Downtown Revitalization - $10 million
in 2000.
• City of Arcadia: Negotiation with major auto dealer
leading to the placement of the Rusnak Mercedes
Dealership - $8 million in 2002.
• City of Arcadia: Affordable Housing Project - $2 million
in 2007.
• City of Arcadia: Extensive experience with land
acquisition, DDA and OPA negotiations, preparation of
the City/Agency annual budget, and affordable housing
projects.
me
EDUCATION
B. A., Urban and Regional Planning -
California State Polytechnic University,
Pomona
M.P.A. (Finance and Public Works
emphasis) - California State University,
Long Beach
YEARS OF EXPERIENCE
1
PROFESSIONAL
AFFILIATIONS
Past President - Municipal Management
Association of Southern California
(MMASC)
Past Chair - Cal-ICMA
liq 1111
I ON
Michael Busch
Managing Principal
MICHAEL P. BUSCH, Managing Principal, joined Urban
Futures in 2007 following a successful career in municipal
government. Mr. Busch's background consists primarily of
assistant/deputy city manager, finance, and project
manager positions. As such, he has extensive experience
in strategic planning, municipal finance. economic
development/redevelopment, and project implementation;
leading to the issuance of over $200 million in tax exempt
debt offerings and implementation of several
redevelopment and infrastructure projects. Mr. Busch has
a unique background having served as a planner, finance
director, city treasurer, deputy city manager and assistant
city manager where he has demonstrated experience in
capital improvement plan development, developer
negotiations, development agreements, and capital project
implementation.
Key Projects and Accomplishments include:
• Development and implementation of Redevelopment
Agency Performance Audit Program.
• Financial Advisor to several Redevelopment Agencies
throughout the State, including the Azusa
Redevelopment Agency.
• City of Lancaster: Amargosa Creek Specific Plan and
Infrastructure Agreements (150 Acre Lifestyle Center) -
$5.8 million (2007).
• City of Lancaster: Negotiations with national retailer
(J.C. Penny) leading to project selection with the City.
• City of Claremont: Land acquisition leading to the
development of a larger Village Expansion Project.
• City of Claremont: Downtown Claremont Village
Expansion Infrastructure Financing Plan and Bond
Issuance- $8 Million (2004).
• City of Indio: Development of several OPA's leading to
significant growth in sale tax revenues.
• City of Indio: Several Public Improvement Bonds, for a
combined total of $100 million (2006).
-5-
EDUCATION
Bachelor of Arts in Sociology - California
State University, Los Angeles
YEARS OF EXPERIENCE
37
PROFESSIONAL
AFFILIATIONS
California Association for Local
Economic Development
California Academy for Economic
Development
Steve Dukett
Principal
STEVE DUKETT, Managing Principal, will assist Mr. Kelly with
all aspects of the work performed and serve as the alternate
lead. He joined Urban Futures, Inc. during 2007. He
specializes in the planning and implementation of
redevelopment, economic development, affordable housing,
asset management, public facility, public infrastructure and
grant programs.
Prior to joining the firm, he served as Redevelopment Director
with six southern California cities and held a variety of
executive, management and professional positions with the
County of Los Angeles and its Community Development
Commission. During his 34 -year career in the public
development arena, Mr. Dukett has been involved with a wide
variety of public and private development projects with
combined values of approximately $1 billion. He is particularly
known for his deal making and deal closing skills.
Mr. Dukett is a graduate of California State University, Los
Angeles. He is a past Chairman of the Board for CALED and
is the current Chairman of the Board of Regents for the
California Academy for Economic Development. During 2006
he was selected as the 12th "Golden Bear", which is CALED's
highest award for career achievement in local economic
development.
El
r
EDUCATION
Bachelor of Architecture with an
emphasis in Urban Design - California
State Polytechnic University, Pomona
YEARS OF EXPERIENCE
A.
PROFESSIONAL PROFESSIONAL
AFFILIATIONS
American Planning Association
Project Team
Paul Schowalter
Principal
PAUL SCHOWALTER, Principal, will have support
responsibilities for this engagement. Mr. Schowalter comes to
UFI with nearly 19 years of redevelopment experience. He
has managed or assisted in the preparation of over 100
redevelopment plan adoptions, amendments, implementation
plans, and feasibility studies. Paul has been responsible for
all activities related to redevelopment plan preparation,
including project management and scheduling; documentation
of existing conditions; evaluation of buildings and properties;
generation and maintenance of databases, graphics, and
maps; the preparation and production of all redevelopment
documents; coordination of sub -consultants; and client
relations. Paul has personally evaluated hundreds of
thousands of properties throughout California for
redevelopment purposes. He also developed a successful
public participation program consisting of newsletters and
"Town Hall" meetings designed to inform and involve the
communities where redevelopment is proposed.
Key Projects and Accomplishments Include:
• Project Manager for Redevelopment Plan adoptions and
amendments for the cities of West Covina, Baldwin Park,
San Dimas, Pasadena, Glendora, EI Monte, La Verne.
Rosemead, and San Gabriel.
• City of Santa Clarita: Guided the Redevelopment Agency
through a controversial adoption that was publicly
challenged by an affected taxing agency.
• County of Riverside: Project Manager for the adoption and
amendment of dozens of Project Areas, many with multiple
sub -areas.
• City of Sacramento: Pro iect Manager for the first
amendment in the State to be processed through new
requirements of SB211.
• Extensive experience in the formation and facilitation of
Project Area Committees.
-7-
EDUCATION
B. A., Political Science/Public
Administration (with a Communications
Minor) California State University,
Long Beach
M.P.A. - California State University,
Long Beach
YEARS OF EXPERIENCE
33
PROFESSIONAL
AFFILIATIONS
International City/County Management
Association (ICMA)
Project Team
David A. Gruchow
Principal
DAVID A. GRUCHOW, Principal, recently joined Urban
Futures, Inc. after a successful and rewarding 33 -year career
in city government. For the first 16 years, Mr. Gruchow held
staff and management positions in several departments in the
City of Long Beach. For the last 17 years, he served as
Assistant City Manager and Assistant Redevelopment Agency
Executive Director for the City of Yorba Linda. During this
career, he gained invaluable first-hand experience in nearly
every local government discipline.
In addition to his extensive knowledge of government financial
and management practices, Mr. Gruchow's major strength lies
in his ability to pull together and manage teams of people to
address complex problems. His active involvement in several
high-profile development projects in Yorba Linda will make him
a key member of the team serving the Azusa Redevelopment
Agency.
Key Projects and Accomplishments Include:
• City of Long Beach: Coordinated all aspects of City's
budget process for three years, including long-range
expenditure and revenue forecasting.
• City of Yorba Linda: Managed work-out of failed auto plaza
project, resulting in a new 30 -acre retail shopping center.
• City of Yorba Linda: Managed Redevelopment Agency's
acquisition of 62 residential and commercial properties
including relocation.
• City of Yorba Linda: Negotiated affordable housing
agreements for two apartment rehab projects (143 units), a
44 -unit family housing project, and a three -unit Habitat for
Humanity project.
• City of Yorba Linda: Supervised three Redevelopment
Agency tax allocation bond issues and a Golf Revenue
Bond issue.
■
Client List
The City of Azusa's Request for Proposal asks for a summary of Urban Futures'
redevelopment experience during the last three years. Since our client list during this
period is so extensive, it has been broken down into major categories of work performed.
Redevelopment Plans
Adelanto
Industry
Kettleman City
McFarland
Redlands
Newark
AB 1290 Implementation Plans
Adelanto
Anderson
Desert Hot Springs
Galt
Gonzales
Grover City
Highland
Lancaster
Lindsay
Livingston
Lompoc
March Joint Powers Auth.
Pismo Beach
Ripon
Shaster
Upland
Feasibility Studies
Hawthorne
Jackson
Kettleman City
Morro bay
Pismo Beach
Port Hueneme
Wasco
Environmental Impact Report
Lemoore
Redevelopment Plan Amendments
Alameda County
Baldwin Park
Brawley
Calexico
Canyon Lake
Coalinga
Dinuba
Fillmore
Fullerton
Galt
Gridley
Gustine
Hughson
Hesperia
Highland
Imperial
Industry
Lancaster
Moorpark
Murretta
Norco
Parlier
Pasadena
Porterville
Redlands
Ripon
Riverbank
Riverside
Riverside County
Rosemead
South Lake Tahoe
Taft
Upland
Vista
Wasco
Financial Advisor (Debt Financings)
Anderson
Arvin
Auburn
Azusa
Banning
Blythe
Brawley
Calexico
Calimesa
Ceres
Cloverdale
Desert Hot Springs
Dinuba
Fillmore
Gonzales
Greenfield
Highland
Imperial
Lancaster
Lemon Grove
Lindsay
Manteca
Moorpark
Murrieta
Parlier
Ripon
Soledad
South EI Monte
Upland
Winters
To
-9-
Managing Principal $225
Principal $195
Senior Staff $160
Associate Staff $125
Assistant Level $75
m
Work Plan
While Bill Kelly will be Azusa's primary point of contact for this engagement, we will
also make the full range of our firm's expertise available to the City. Services such as
planning, environmental review, and financial advisor are simply a phone call away.
We believe this relationship will have long-term benefits to both the City and the
Redevelopment Agency.
In addition, UFI is also proposing to make staff available to Azusa for in-house
consultation and assignments two day per week. Mr. David Gruchow will fill this role.
■
-11-
www.urbanfuturesinc.com
WARRANT REGISTER NO. 20
FISCAL YEAR 2008-09
WARRANTS DATED 05/01/09 THROUGH 05/15/09
FOR REDEVELOPMENT AGENCY MEETING OF 06-15-09
RESOLUTION NO.
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS
TO BE PAID OUT OF REDEVELOPMENT AGENCY FUNDS
THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA DOES RESOLVE AS
FOLLOWS:
SECTION 1. That the following claims and demands have been audited as required by law and that
the same are hereby allowed in the amounts and ordered paid out of the Redevelopment Agency Funds as
hereinafter set forth:
80 -110 -REDEVELOPMENT ADMINISTRATION FUND
80 -125 -CBD CAPITAL PROJECTS FUND
80 -135 -WED CAPITAL PROJECTS FUND
80 -185 -RANCH CAPITAL PROJECTS FUND
81-165-626-2008B HSG TAX ALLOCATION BONDS
81 -155 -TAX INCREMENT SET-ASIDE FUND
82 -125 -CBD DEBT SERVICE FUND
82 -135 -WED DEBT SERVICE FUND
82 -185 -RANCH CENTER DEBT SERVICE FUND
$ 10.841.61
55,073.80
1,327 264.50
36.891.76
22 033.96
TOTAL ALL FUNDS: $1,452,105.63
SECTION 2. That the Secretary shall certify to the adoption of this resolution and shall deliver a
certified copy thereof to the Agency Treasurer and shall retain a certified copy thereof in his own records.
ADOPTED AND APPROVED THIS DAY OF
Chairman
2009.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the
City of Azusa at a regular meeting thereof, held on the day of 2009.
AYES:
AGENCY MEMBERS:
NOES:
AGENCY MEMBERS:
ABSTAIN:
AGENCY MEMBERS:
ABSENT:
AGENCY MEMBERS:
Secretary
City of Azusa HP 9000 06/10/09 O P E N H O L D
WED, JLN 10, 2009, 8:37 AM ---req: ROSE-------leg: GL JL--- loc:
D B LISTING By R_,x n Entity Nacre
BI-TD I---job: 668973 #J1775--- pgn: CH400 <1.34> rpt id:
Ppaagqee 1
CHFL'TR02
SELECT FUND
Ccdes : 80-82 ; Check Issue Dates: 050109-051509
PE ID
PE Nacre ACC= NUMBER / JOB NUMBER
Invoice Nmber
Description St Disc. Amt. Dist. Amt.
-----------
V05613
-- - - —_-------_______--- ___________=______
A T & T 8010110000-6915
=- __=
6263345464042409
_______--- __ ______
0517751058001/62 PD 0.00
10.82
PEIDd:
�d:
0.00
10.82
Total:
10.82
V11798
ALLEN DMR?fg\]CY 8110155000-7110/505800-7110
031009
BaARD-UP SVC/902 PD 0.00
3,445.00
PEID d:
0.00
Tbtal:
3,445.00
3,445.00
V00270
ATHENS SERVICES 8010125000-6625/505800-6625
364722000
624N SAN CTRL/36 PD 0.00
119.23
PEID d:
0.00
Paid:
119.23
Total:
119.23
V00363
AZUSA CEA'BFR OF 8010110000-6630
708
FY 08/09 AZUSA C PD 0.00
3,000.00
PEID id:
0.00
Paid:
Total:
3,000.00
3,000.00
V01305
A= CITY FED C 8000000000-3035
2610/0901009
PR#9/09 PD 0.00
272.50
FED Ih�id:
0.00
Paid:
272.50
Tbtal:
272.50
V10604
AZUSA MD=IJLE MAN 8000000000-3020
2618/0901009
PR#9/09 PD 0.00
30.00
PEID 11M :
0.00
Paid:
30.00
Tbtal:
30.00
V95948
AZUSA, CITY OF 8000000000-3042
032409
REIlv9B/1v®-DEP FE PD 0.00
150.32
PEID d:
0.00
''d:
150.32
Total:
150.32
-1
City of Azusa HP 9000 06/10/09 O P E N H O L D
D B LISTING By /Entity Narre
Page 2
WID, JUN 10,
2009, 8:37 AM ---req: ROSE -------leg: GL JL --- loc:
BI -'DSII ---job: 668973 #J1775 --- pgm: CH400 <1.34> rpt id: CHEL'TR02
SE= FL\ID
Crudes: 80-82 ; Check Issue Rtes: 050109-051509
PE ID
PE Narre ACCOLNT NMER / JOB NMI ER
Invoice NuTber
Description St Disc. Ar -rt.
Dist. Ant.
V07432
BARR & CLARK FNV 8110155000-6399/505800-6399
19221
----- --------_
LEAD PAINT INSPC PD
-
0.00
_ _---_
3,325.00
V07432
BARR & CLARK ENV 8010125000-7110/505825-7110
19326
AS2SIt3S/LEAD CZE PD
0.00
2,925.00
PEID
i_maid:
0.00
Paid:
6,250.00
Total:
6,250.00
V05804
BEST BEST & KRIE 8110155000-6301/505320-6301
601443
3/09 LGL-AFFCPD PD
0.00
6,503.00
V05804
BEST BEST & KRIE 8010125000-6301/505825-6301
601446
3/09 LCL -'IAT PD
0.00
4,368.00
V05804
BEST BEST' & ERIE 8010125000-6301/505800-6301
601448
3/09 LCA.,-VAffi FD
0.00
4,376.12
V05804
BEST BEST & ERIE 8010125000-6301/505800-6301
601449
3/09 LGL -03= PD
0.00
90.06
V05804
BEST BEST' & KRIE 8010125000-6301/505800-6301
601450
3/09 LGL-CHDI ET PD
0.00
2,735.23
V05804
BEST BEST & KRIE 8010125000-6301/505800-6301
601445
3/09 LCA-1EWIS E PD
0.00
461.30
V05804
BEST BEST' & KRIE 8010125000-6301/505800-6301
601452
3/09 LCA-M�= PD
0.00
173.67
V05804
BEST BEST & KRIE 8010125000-6301/505800-6301
601447
3/09 LGL-FMERN PD
0.00
168.00
V05804
BESF BEST & KRIS 8010125000-6301/505900-6301
601444
3/09 LCA-RZA STA PD
0.00
714.00
V05804
BEST BEST & KRB 8010125000-6301/505825-6301
601451
3/09 LCL -CBS CUF PD
0.00
490.23
V05804
BEST BEST & KRIE 8110155000-6301/505320-6301
601444
3/09 LCA-RZA SIA PD
0.00
383.60
V05804
BEST BEST & KRIE 8010125000-6301/505900-6301
601453
3/09 LCA-FMIT, PD
0.00
2,415.87
V05804
BEST' BEST' & = 8010110000-6301
601444
3/09 LCA-RI1A STA PD
0.00
862.44
V05804
BEST BEST & KRIE 8010125000-6301/505800-6301
601444
3/09 LCA -RIA STA PD
0.00
189.00
PEIDd:
0.00
Paid:
23,930.52
Total:
23,930.52
V10762
BLAKE & ASSOC. I 8010125000-6325/505800-6325
992404
APPRSL-634SAN GA PD
0.00
3,500.00
PEID
Lhid:
0.00
Paid:
3,500.00
Thtal :
3,500.00
V06783
CTITSIREET 8000000000-3010
2315/0901009
PPR 9/09 PD
0.00
124.71
V06783
=SIR=
og FD
0.00
V06783
CTTTSIREET 8000000000-3010
1310000-3010 /0901009
PR#9/09 PD
0.00
266.57
PEID
thrid:
0.00
Paid:
953.11
Total:
953.11
V00348
CIZ= HEALTH I 8000000000-3054
2435/0901009
PR##9/09 PD
0.00
28.87
City of Azusa HP 9000 06/10/09 O P E N H O L D
D B LISTING By z/Entity Kane
Page 3
WED, J[N 10,
2009, 8:37 AM ---req: ROSE -------leg: GL JL --- loc:
BI -TD I ---job:
668973 W1775 --- pgn: CH400 <1.34> rpt
id: CSL 02
SECT FLND
CbJes: 80-82 ; CV�eck Issue Dates: 050109-051509
PE ID
PE Nacre ACCaNF N.NBER / JOB NUMBER -----------
Invoice NuTber- Description St Disc. Amt.
Dist. Amt.
-------------
--------------- --PEID --ld:
0.00
'd:
28.87
Total:
28.87
V10115
DAN CCIVIRACIOR 8110155000-6650/505300-6650
935AZ
F H\1AL/188E KIRKW PD 0.00
8,000.00
PEID ihpaaid:
0.00
Paid:
8,000.00
Total:
8,000.00
V08010
DUKE'S LgUSCAPI 8010125000-6815
4408
CLEANUP -810&902- PD 0.00
1,200.00
V08010
DUKE'S LPN�PI 8010125000-6815
4408
FY 08/09 MAINZ' -R PD 0.00
1,240.00
V08010
LLUKE'S LAI�CAPI 8010125000-6815
4514
FY 08/09 MAINT-R PD 0.00
1,320.00
V08010
DUKE'S LANDSC'API 8010125000-6815
4514
COUP -810&902- PD 0.00
900.00
PEID d:
0.00
d:
4,660.00
Total:
41660.00
V00331
FEDERAL EXPRESS 8110155000-6625/505320-6625
915350616
117052788/616CED PD 0.00
16.96
V00331
FEDERAL EXPRESS 8010125000-6625/505800-6625
915350616
117052788ZJK PAR PD 0.00
16.55
V00331
FEDERAL EXPRESS 8010110000-6625/505320-6625
916176626
117052788/ESCROW PD 0.00
16.55
V00331
FEDERAL EXPRESS 8010110000-6625/505320-6625
916176626
117052788/I PD 0.00
16.55
V00331
FErERAr,EXPRESS 8110155000-6625/505320-6625
917018858
117052788/ATLANF PD 0.00
16.55
V00331
FECAL EGRESS 8110155000-6625/505320-6625
917018858
117052788/,Al= PD 0.00
12.55
V00331
FE�zAr,�� 8110155000-6625/505320-6625
917780340
117052788 FD 0.00
16.55
V00331
FEEERAL EXPRESS 8110155000-6625/505320-6625
917780340
117052788 6410E PD 0.00
12.55
PEID TXJPPaaiiit :
0.00
d:
124.81
'Ibtal:
124.81
V10576
FRJ & ASSOCIAZES 8010125000-6345/506000-6345
AZU160
CLNM REH PRJ KN PD 0.00
6,000.00
PEID Uhpa 1d:
0.00
Paid:
6,000.00
Total:
6,000.00
V02688
IIVIERNATICNAL,CD 8010110000-6230
1390090
DUES/K. CHRISTIAN PD 0.00
50.00
PEED Urid:
0.00
Paid:
50.00
City of Azusa HP 9000 06/10/09 O P E N H O L D D B LISTING By /Entity Narre Paqe 4
WM, JLV 10, 2009, 8:37 AM ---req: ROSE ------- leg: GL JL --- loc: BI-TFST3 --- job: 668973 #J1775 --- pgn: OH400 <1.34> rpt id: CHNLTR02
SE= FLUID Cbdes: 80-82 ; Check Issue Dates: 050109-051509
PE ID PE Nacre ACCnL \Tr NME / JCB NU13ER Invoice Nurber Description St Disc. PiTt . Dist. Ant.
V11603
V11603
V11603
V00212
V03126
V03126
LAWYERS TITLE BU 8110165626-7105/505320-7105
LAWYERS TIRE BU 8110165626-7105/505320-7105
LAWYERS TITLE BU 8110165626-7105/505320-7105
LEWIS SAW & UAkN 8010125000-6815
1 ' • �� • ►� :111111111 1 /
1►'�• ► ►►_ � •►►_ S 111111111 1 /
V10322 M & T BAW 8000000000-3010
V11826
V01582
Nn=, D"I\I\A 8010125000-6325/505800-6325
NEXTEL OJ*MCA 8010110000-6915
U02464 IUJYIIV, MY = 8010125000-2719/505800-2719
-- --------------
Total:
--- -----
50.00
BCJL10735-EI
=0732 -EF
Lard Awn �i sition 0.00
Acquisition PD 0.00
1, 987.50
3,490.00
BUL10735-EF
Land Acquisition PD 0.00
660,000.00
PEED d:
0.00
Total:
665,477.50
665,477.50
137130
43 NASIER PADLCC PD 0.00
77.62
PEID Lhid:
0.00
PPaaiid:
77.62
Total:
77.62
1320/0901009
2325/0901009
X9/09 FD 0.00
PR#9/09 PD 0.00
78.75
500.00
PEID d:
0.00
Paid:
578.75
Total:
578.75
050109A
Iefrd Omp Pbl/P PD 0.00
369.17
PEID Lhid:
0.00
PPaaiid:
369.17
Total:
369.17
090213
REDU APPRSL/830 PD 0.00
700.00
PEID thipa :
0.00
P�aa'd:
700.00
Tbtal:
700.00
635925025082
635925025-082/AP PD 0.00
23.72
PEID thrid:
0.00
PPaa'd:
23.72
Total:
23.72
042809
RET SEC DE CSIT/ PD 0.00
3,174.92
City of Azusa HP 9000 06/10/09 O P E N H 0 L D D B LISTING By arson/EYitity Nacre ppaqee 5
VEI), J[N 10, 2009, 8:37 AM ---req: MSE ------- leg: GL JL --- loc: BI -=---job: 668973 #J1775 --- p9m: CH400 <1.34> rpt id: CHFLTR02
SET FU\D Codes: 80-82 Check Issue Dates: 050109-051509
PE -ID ------ FE-Narre------- AM= NUIBER / JOB NU43ER Invoice Number Description St Disc. Amt. Dist. Arrt .
V00540
V00540
V01440
V01440
V92617
V04138
V04138
V10053
V08056
V08056
OFFICE EFYO 'INC 8010110000-6530
OFFICE DE CT INC 8010110000-6530
OVERLAND PACIFIC 8010125000-6399/505800-6399
OVERLAND PACIFIC 8010125000-6399/505800-6399
PRICE FAMILY 8210135000-7001/503301-7001
'�I • Y•' :111111111 /
'� • Y•' :111111111 1
Y• I�•'� 1 � '• :111111111 1� �
Y• Ir•140 1 '• ilk:111111111
PEID Urid: 0.00
Paid: 212.81
PEID Ulp id:
0.00
Paid:
Total:
3,174.92
3,174.92
471698530001
471698530001
381172 Nla\BJREX
522159 AVERY 8-T
S PD 0.00
PD 0.00
5.15
23.70
PEID Urid:
0.00
PPaaiid:
28.85
Total:
28.85
0902111
0903099
RE= SVCS-A2&A PD 0.00
RECCCN SVCS-A2,SA PD 0.00
28.75
446.50
PEID Ui id:
0.00
PPaaiid:
475.25
Total:
475.25
051209
PRICE CLUB N=
PD 0.00
22,033.96
PEID Urid:
0.00
PPaaiid:
Total:
22,033.96
22,033.96
2215/0901009
2410/0901009
PR#9/09
FR -9/09
PD 0.00
PD 0.00
3.75
2.81
PEID Uraid:
0.00
PPaaiid:
6.56
'lbtal:
6.56
1221/0901009
PR49/09
PD 0.00
87.08
PEID d:
0.00
Paid:
87.08
Total:
87.08
0901009
22055.86
/0901009
#
PR#9/09
PD 0.00 0.00
156.95
PEID Urid: 0.00
Paid: 212.81
City of Azusa HP 9000 06/10/09 O P E N H O L D
VED, J -U 10, 2009, 8:37 AM --- req: RCSE ------- leg: GL JL --- loc:
D B LISTING By Frs/Entity Nacre ppaqe 6
BI -=---jab: 668973 *n775 --- p9m: CH400 <1.34> rpt id: CHFLTR02
SEDT FIND
Cbdes: 80-82 ; Check Issue Dates: 050109-051509
PE ID
PE Nam ACC= NUvEER / JOB NMBF R
Invoice Number
Description St Disc. Amt.
Dist. Amt.
Total:
212.81
V11832
V11832
TIOM VALLEY CD 8110165626-7105/505320-7105
TIOM VALLEY CO 8110165626-7105/505320-7105
90089 -LT
90089 -LT
627 E. Lure, #900 PD 0.00
627 E. Lure,#900 PD 0.00
660,000.00
11787.00
PEID I d:
0.00
Pa1i'd:
Total:
661,787.00
661,787.00
V10009
V10009
V10009
V10009
V10009
V10009
V10009
V10009
V10009
V10009
V10009
TIERRA V= ADVI 8110155000-6345/505320-6345
TIERRA WEST ADVI 8010125000-6345/505800-6345
TIERRA WEST ADVI 8010125000-6345/505800-6345
TIERPA WEST AWI 8010125000-6345/505900-6345
TIERRA WEST ADVI 8110355000-6345/505310-6345
TIERRA WEST ADVI 8010110000-6345
TIERRA WEST ADVI 8010125000-6345/505825-6345
TIERRA WEST ADVI 8110155000-6345/505320-6345
TIFRRA WEST ADVI 8010125000-6345/505825-6345
TIERRA WEST ADVI 8110155000-6345
TIERPA WEST ADW 8010125000-6345/505800-6345
10073
10073
10053
10083
10053
10053
10053
10053
10103
10053
10013
3/09 CaSISM PD 0.00
3/09ACON Cla\]S L PD 0.00
3/09 PRJ M3VT-MI PD 0.00
3/09 PRJ M3�T-EK PD 0.00
3/09 PRT NUU-NI PD 0.00
3/09 PRJ M3VT-NB PD 0.00
3/09 PRJ =-MI PD 0.00
3/09 PRT M3,,II'-MI PD 0.00
3/09 PRJ M VT- M PD 0.00
3/09 PRT M 1941I FD 0.00
3/09 PRT M3VT-LE PD 0.00
12,160.00
2,015.00
2,517.50
3,698.75
800.00
3,840.00
1,500.00
450.00
6,200.00
11750.00
1,312.50
PEID LuT aid:
0.00
PPaaiid:
Total:
36,243.75
36,243.75
W0876
V0087V00876
KkclD2UICN MJILA 8000000000-3010
� M= 80MJILA 00000000-3010
2330/0901009
23350000000-3010 /0901009
9/09 PD 0.00
0.00
19/09 PD 0.00
116.90
171.6 1
PEID d:
0.00
d:
303.51
Total:
303.51
G RAN D T OTA L 'd: 1452,105.63
Total: 1452,105.63