HomeMy WebLinkAboutAgenda Packet - November 22, 2004.7,
AGENDA
REGULAR MEETING OF
AZUSA UTILITY BOARD
AND
AZUSA CITY COUNCIL
AZUSA LIGHT & WATER
729 N. AZUSA AVENUE
AZUSA, CA 91702
AZUSA UTILITY BOARD
DIANE CHAGNON
CHAIRPERSON
DICK STANFORD
VICE CHAIRPERSON
CRISTINA C. MADRID
BOARD MEMBER
MONDAY, NOVEMBER 22, 2004
6:30 PM
DAVE HARDISON
BOARD MEMBER
JOSEPH R. ROCHA
BOARD MEMBER
6:30 p.m. - Convene to Regular Meeting of the Azusa Utility Board and Azusa City Council
• Call to Order
• Pledge to the Flag
• Roll Call
1. PUBLIC PARTICIPATION
(Person/Group shall be allowed to speak without Interruption up to live (5) minutes maximum
time, subject to compliance with applicable meetinn, rules. Questions to the speaker of
responses to the speakers questions or comments shall be handled after the speaker has
completed his/her comments. Public Participation will be limited to strty (60) minutes time.)
The Consent Calendar adopting the printed recommended action will be enacted with one vote. IfStaff or
Councilmembers wish to address any item on the Consent Calendar individual4f, it will be considered under
SPECIAL CALL ITEMS.
001.
1111. CONSENT CALENDAR � L u 1 v
A. Minutes. Recommendation: Approve minutes of regular meeting of October 25, 2004, as written.
II -A. UB Minutes
10-25-04.doc
B. Underground Cable Puller Purchase. Recommendation: Approve purchase of one underground
cable puller from Sherman 8: Reilly, Inc. in the amount of $46,650.
II -B. Cable Puller Bid
Award.doc lye
C. City Hall Electric Utility Service Refurbishment. Recommendation: Approve plans and
specifications for refurbishing existing electric utility service at City Hall and authorize City Clerk's
office to advertise for bids.
IIS.
Cty IElectncServiu
D. Itron's Time -of -Use Billing Software Upgrade. Recommendation: Approve purchase of Itron's MV -
90A time -of -use billing software upgrade; authorize City Manager to sign Professional Services
Agreement and Software License Maintenance Agreement; and amend current year budget by
$16,500 to pay for upgrade and maintenance service agreement.
U -D. Itron MV-90xi
purchase 11-04. DOC
E. Annexation of Nursery Reservoir Site to Los Angeles Countv Sanitation District No. 22.
Recommendation: Approve the Request for Annexation of Parcel 8624-024-092 (Nursery Reservoir
Site) to County Sanitation District No. 22 of Los Angeles.
9�° D q'
II -E. Annex to O
LACoSD.doc 1
California Independent System Operator Annual Transmission Revenue Balancing Account
Adiustment f"TRI11 1. Recommendation: Approve the following resolution:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ESTABLISHING THE
TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT IN ACCORDANCE 1
WITH AZUSA'S TRANSMISSION OWNER TARIFF AND PROVIDING FOR TARIFF SHEET
CHANGES TO IMPLEMENT THE ADJUSTMENT.
MU -1\\
II -F. TRBAA
\V�
Resolutimcloc
002
?,
G. Southem California Edison - Kirkwall Substation Construction Work Audit.
Recommendation: Authorize staff to conduct cost audit of Edison's construction costs
for Kirkwall Substation through Navigant Consulting in amount not -to -exceed $23,925;
and authorize City Manager to execute professional agreement.
®>
Lai
II -G Krkwat
Audit.doc
H. Software Support Contract with Lund Performance Solutions. Recommendation:
Waive formal bids in accordance with Azusa Municipal Code Section 2-523 section C,
and approve contract with Lund Performance Solutions in the amount of $15,000 for
software support services.
D
II -H. MUIS
Support -Lund Contra -
dp.Ge O'l-a
Light & Water lackets for Field Staff. Recommendation: Approve purchase of 42
jackets with Azusa Light & Water logo for all field staff from the lowest bidder, Kathco,
for a total cost of $12,001.55.
Jacket
4��
purr ase.DOCp�(fi L
111. SCHEDULED ITEMS �/ ✓ /
A. Materials Exchange Web Service Contract. Recommendation: Approve a three-year contract with
Genacom, Inc. for web services; authorize City Manager to execute same contract; and approve
budget amendment using AB 939 fees in the amount of $12,000.
J
III -A. ReUseMax.doc e
B. Telecommunications Research Update and Non -Disclosure Agreement with Access Broadband.
Recommendation: Consider and provide comments on telecommunications update report; terminate
non -disclosure agreement with Aiirmesh Wireless, Inc.; authorize continued dialogue with Wireless
Facilities, Inc.; and authorize staff to execute non -disclosure agreement with Access Broadband.
III -B. Telecom
Update Report.doc
C. Meter Strate-gy Request For Proposal. Recommendation: Approve solicitation of proposals for a
comprehensive meter strategy study with recommendations. � /
III -C. Meter
Strategy RFP. DOC
D. Colton -Azusa Joint Feasibility Power Generation Study. Recommendation: Authorize staff to
participate in joint feasibility study to upgrade an existing power plant located in City of Colton, and ly
reimburse same at a cost not -to -exceed $22,500.
Generation
III-Azu,1 A
Generation Study.d a - Y U.�/ /
E. Water Rate Adjustment for Miller Brewing Company. Recommendation: Approve the following Y
resolution:
A RESOLUTION OF THE UTILITY BOARD/CIN COUNCIL OF THE CITY OF
AZUSA, CALIFORNIA, APPROVING WATER RATE ADJUSTMENT FOR MILLER
BREWING COMPANY, A WISCONSIN CORPORATION.
III -E. Miller Rate
Adjustirent.doc
IV. STAFF REPORTS/COMMUNICATIONS
A. Customer Information Service Update
I
I IV -A. CIS Update (� 5
11-D4.DDC
B. Monthly City Yard Renovation Project Status Report
IV -B. Moly Report
City Yard Renovation
C. Monthly Power Resources Update
��---�
IV -C. Moly Power
Update 11-04.ppt
D. Legislative Update
IV -D. Legislative
Update.ppt
E. ,CMUA Legislative Update
I
IV -E. CMUA
Legislative Update.dc
aye V -n
4 004
ti
F. SCPPA Holiday Luncheon /, �✓J j
®141
N- F. SCPPA Holiday
Wncheon.doc
V. DIRECTORS' COMMENTS
A. December Board Meeting
VI. CLOSED SESSION l�
A. CONFERENCE WITH LEGAL COUNSEL
Government Code Section 54956.9 (b)
Utility Transfer to General, FY 2003-2004
B. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8).
Address: 16706 East Cypress Street, Covina 91722
Agency Negotiators: Utilities Director Hsu and Assistant to Director of Utilities Kalscheuer
Under Negotiation: Price and Terms of Payment
C. CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6)
Agency Negotiators: City Manager Gutierrez and Human Resources Director Hanson
Organizations/Employee: ACEA, AMMA, CAPP, Laborers, Executive
D. CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6).
Agency Negotiators: City Manager Gutierrez and Assistant City Manager Person
Organizations/Employee: Executive, CAPP, IBEW and ACEA
E. PUBLIC EMPLOYMENT (Gov. Code Sec. 54957)
Title: Human Relations Commission Coordinator
VII. ADIOIlRNMENT
A. Adjournment.
in compliance with the Americans with Dlsabikitkes Act, kfyou need special asskstaixe to partJCA to In
a city meeting, please contact the City Clerk at 616-811-5219. Notification three (3) working days prior
to the meeting or time when special services are needed will assist staff in assuring that reasonable
arrangements c" be made to provide access to the meeting. "
005
CITY OF AZUSA
MINUTES OF THE REGULAR
MEETING OF THE AZUSA
UTILITY BOARD/CITY COUNCIL
MONDAY, OCTOBER 25, 2004 - 6:30 P.M.
The Utility Board Members of the City of Azusa met in regular session, at the above date and
time, in the Azusa Light and Water Department Conference Room, located at 729 N. Azusa
Avenue, Azusa, California.
Chairperson Chagnon called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: BOARD MEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID
ABSENT: BOARD MEMBERS: NONE
ALSO PRESENT: Also Present
City Attorney Ferre, City Manager Gutierrez, City Clerk Mendoza, Director of Utilities Hsu,
Assistant to the Utilities Director Kalscheuer, Assistant Director of Resource Management Tang,
Assistant Director of Water Operations Anderson, Assistant Director of Electric Operations
Ramirez, Public Benefit Coordinator Reid, Office Specialist Cawte, and Administrative Technician
Yang.
Public Participation Pub Part
None
None.
The CONSENT CALENDAR consisting of Items II- A through II -K, were approved by motion of Consent Cal
Board Member Stanford, seconded by Chairwoman Chagnon and unanimously carried, with the Approved
exception of items li- J, which was considered under the Special Call portion of the Agenda.
A. The Minutes of the regular meeting of September 27, 2004, were approved as written. Min Appvd
B. Formal bidding procedures were waived and the purchase of an on-line residential home Energy Audit
energy audit program was awarded to Enercom, Inc. for one-time setup fee of $8,700 and System
additional monthly website hosting cost of $325 was approved. Enercom, Inc.
0.06
C. Formal bidding procedures were waived, and the purchase of a conservation education Conservation
program was awarded to LivingWise in the amount of $40,332.61. Ed LivingWise
D. The contract for the Electric Yard renovation located at 1020 W. Tenth Street was awarded to Elect Yard
ABEAM Construction for $1,518,OOO end staff was authorized to amend the Capital Renovation
Improvement Project budget in the amount of $867,500. ABEAM
E. Specifications for one underground cable puller were approved and the City Clerk's office Specs Cable
was authorized to advertise for bids. Puller
F. The three year contract for janitorial service was awarded to United Maintenance Systems in United Maint.
the amount of $2,110 per month. Sys. Janitorial
G. The three year contract for landscape and irrigation maintenance service was awarded to TruGreen
Tru Green Lan dCare in the amount of $3,290 per month and approval was given to amend LandCare
the budget in the amount of $18,300 to cover added cost. Maint sys
H. Project W-194, Cypress Street Water Main Replacement Project was awarded to John T. John T.
Mallory, Incorporated in the amount of $687,573.70 and staff was authorized to amend Mallory
Capital Improvement Project budget in the amount of $188,000. Cypress St.
A Professional Services Agreement for Inspection Services for Project W-194, Cypress Street Inspect Svs
Water Main Replacement Project was awarded to Wren & Associates in the amount of Wren &
$32,000. Associates
SPECIAL CALL ITEM. Spec Call
K. Notice of Completion for Capital Improvement Project Water Treatment Plant Entrance Block NOC
Wall and Conduit Improvements was accepted and the City Clerk's office was directed to Wtr Treat
have said notice executed and have same recorded with the office of the Los Angeles Plant Wall
County Registrar -Recorder.
Special Call Items Spec Call
Items
Board Member Hardison requested clarification on item regarding the destruction of three Wells, Hardison
asking if it includes the Paramount site listed in item III -C. Director of Utilities Hsu responded Questions
stating that it does not include the Paramount site.
Moved by Board Member Hardison, seconded by Board Member Stanford and unanimously Layne -
carried to accept the assignment of Beylik Drilling's Well Destruction contract to Layne- Christiansen
Christiansen. Destroy Wells
Scheduled Items Sched Items
Assistant to the Utilities Director Kalscheuer provided a power point presentation on a Materials C. Kalscheuer
Exchange Web Service which allows communities to promote exchanges amongst Web Service
residents/businesses of furniture, toys, clothes, which might otherwise be set out for pick up on Recycling
trash day or be taken to a household hazardous waste round up. He demonstrated how the web
service would/could be utilized, stating that Genacom is proposing to develop and deploy the
exchange functionality within one month, the then operate the service for a 3 -year period at a set
up cost for service of $10,000 and an ongoing fee of $350 per month. He stated that the funding
would come out of AB 939 funds; he then answered questions posed by the Board Members
regarding commercial use, cost, absence of the materials going to landfill, other cities and entities
utilizing the service, percentages of internet users and prevention of bogus tonnage boosters.
10/25/04 PAGE TWO
007
Mr. Kaischeuer stated that he would market the service in April as part of Cleaner and Greener Kalscheuer
Azusa. Continued
Chairperson Chagnon reiterated Board Members concerns as follows: Board Member Stanford
Chagnon
would like more information from the City of Napa, who currently utilizes the service, and Board
Comments
Member Rocha wants to know the internet access numbers. She then requested that Mr.
Item to
IWscheuer come back to the next Utility Board meetingwith that information along with the item
Come back to
for re -consideration.
Next meeting
Assistant Director of Resource Management Tang presented item regarding the San Juan Unit #3
B. Tang
Firming Arrangement between the City and Third Parties. The contractual arrangement for firming
Comments
San Juan energy is soon to expire and that staff has reexamined the options for firming San Juan
San Juan Unit
power commencing January 1, 2005 through December 2005. He detailed the proposals in
#3
graph form received from Parties A, B, C, and D and recommended Party C, which was Arizona
Public Services (APS) and answered several questions posed by Board Members regarding cost
and use.
Moved by Board Member Stanford, seconded by Chairperson Chagnon and unanimously carried
Firming Agmt
to approve the agreement with Arizona Public Services (APS) and authorize the Mayor to execute
APS
the agreement upon the preparation of the execution copy.
Authorization to initiate the process of disposing the property at 275 W. Paramount Avenue.
Dispose of
Director of Utilities Hsu addressed the issue stating that property was used as a well in the past
275 W.
but is currently being used as a storage area. Discussion was held regarding the zoning of the
Paramount
parcels and possible uses for the site. Moved by Board Member Stanford, seconded by Board
Member Hardison and unanimously carried to authorize staff to initiate the process of disposing
of Utility property located at 275 W. Paramount Avenue.
Staff Rpts
Staff Reports/Communications
Updates
Director of Utilities Hsu advised as part of Status of Projects, that the Sierra Club filed a lawsuit
Dir of Util
against San Juan Power Plant for air pollution and recently settled. There is a need to remove
Update on
particulate emissions and the City of Azusa's cost share is two and one-half million dollars with
Lawsuit
payment to begin 2008; ongoing discussions have been occurring at SCAPPA about this issue and
Air Pollution
how to fund retrofit work.
San Juan
The Following items were presented, but not discussed:
Monthly Power Resources Update. Monthly Pwr
Legislative and Regulatory Update. Legislative
Director of Utilities Hsu advised that in January of 2005, there is an event called Capitol Day, Dir of Util
which is a two day reception in Sacramento for local elected officials and he will provide Ancmt
additional information in the future.
Director of Utilities Hsu advised that there are minor changes on the service for customer Dir of Util
information billing system. He stated that there will be monthly update on the big projects, such Comments
as customer billing system.
10/25/04 PAGE THREE 008
Directors' Comments
Dir Cmts
Director of Utilities Hsu advised that next months meeting will be held on November 22nd and that Next mtg
December meeting will be held on the 28`".
Board Member Stanford advised that San Diego is having Financial problems and detailed the Stanford
situation. Comments
City Manager Gutierrez advised that the County Sanitation District will be having a joint water Gutierrez
pollution control tour and will make copies for Board Members. Comments
Board Member Rocha advised that his mother is still in intensive care and everyone wished him Rocha
the best. He also announced that there will be Veteran's Day Celebration on November 11 th, at Comments
11 a.m. and that they will be honoring fourteen Azusa Veterans.
It was consensus of the Board Members to adjourn.
TIME OF ADJOURNMENT: 7:31 P.M.
SECRETARY
NEXT RESOLUTION NO. 04-C84.
10/25/04 PAGE FOUR
Adjourn
100
TO:
FROM:
DATE:
SUBJECT:
CONSENT CALENDAR
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD AND AZUSA CITY COUNCIL
JOSEPH F. HSU, DIRECTOR OF UTILITIES_
CW
NOVEMBER 22, 2004
REQUEST TO PURCHASE ONE UNDERGROUND CABLE PULLER
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve the purchase of one
underground cable puller from Sherman & Reilly, Inc., in the amount of $46,650.
BACKGROUND
On October 25 2004, the Utility Board/City Council approved the specifications for an
underground cable puller and authorized formal bidding. The bid opening was held at the City
Clerk Office on November 15, 2004 and the results of the bid opening were as follows:
Bidder's Name Amount Notes
Sherman &Reilly, Inc. $46,650.00
TSE International, Inc. $41,037.00 Did not meet specifications
Hogg & Davis, Inc. -0- Failed to submit bid
Although TSE was the lowest bidder, they failed to meet our specifications for the following
reasons:
1. We specified a hydraulic system with a 15 Gpm pump and motor that operates at a
normal pressure. TSE's unit is a hydrostatic drive type of system that operates at a
higher pressure and is more complicated and expensive to repair.
2. We specified a trailer with a total weight between 3,500-4,000 lbs. for our foreman
trucks to tow, TSE's unit weighs 7,000 lbs.
3. Most importantly, we specified this unit to have the rear pulling arm to be hydraulically
controlled for adjustments during a cable pull. TSE's unit's rear pulling arm is manually
controlled using pins, which is too difficult to adjust during a cable pull. Hydraulically
controlled pulling arms are not an option with TSE's unit, therefore they do not meet
our specs.
010
FISCAL IMPACT
Sufficient funds are available in the FY 2005 operating budget, Account No. 33-40-733-960-
7140, reserved for purchase of power operated equipment.
Prepared by:
Donna Ramirez, Office Specialist 11
0.11
TO:
FROM:
DATE:
SUBJECT:
CONSENT CALENDAR
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
JOSEPH F. HSU, DIRECTOR OF UTILITIES
NOVEMBER 22, 2004
APPROVE PLANS AND SPECIFICATIONS FOR REFURBISHING EXISTING
ELECTRIC UTILITY SERVICE AT 213 E. FOOTHILL BLVD. (CITY HALL)
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the plans and specifications for
refurbishing existing electric utility service at City Hall (213 East Foothill Boulevard) and
authorize City Clerk to advertise for public bids.
BACKGROUND
As part of the Utility's continuing effort to renovate and improve existing City Hall facilities,
Azusa Light & Water (ALB.W) set aside some capital improvement funds to refurbish existing
old electric utility service located at City Hall, 213 East Foothill Boulevard.
In these past few years, new computers, heating & air-conditioning equipment and lighting
upgrades have been installed at City Hall, West Wing offices, and Auditorium premises,
however, the electric utility service currently serving City Hall was installed many years ago
inside an underground vault behind the building. Soon the City Hall's electric utility service
will need to be replaced or upgraded before it deteriorates and fails. Moreover, old
transformers are no longer stocked in AL&W's supplies inventory. Hence, if the electric
equipment and rusted electric panels fail, spare replacements will be difficult to obtain and
install within short notice.
This preventive and refurbishment project will help ensure the continuity of electric services at
City Hall premises.
012
FISCAL IMPACT
This Capital Improvement Project has been budgeted this fiscal year and funds are available in
Account Number 33-80-000-730-6625/730046-6625. Project cost will be reported at the
time the low bid is recommended for approval.
Prepared by:
F. Langit Jr., PE, Senior Electrical Engineer
Hien K. Vuong, PE, Engineering Associate
013
AZUSA
SIGHT R WATIR
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES ^`/
DATE: NOVEMBER 22, 2004 V`6
SUBJECT: REQUEST TO PURCHASE ITRON'S TIME -OF -USE BILLING SOFTWARE UPGRADE
AND MAKE COMMITMENT TO INCUR INSTALLATION COSTS
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council: (1) approve purchase of Itron's
MV-90xi time -of -use billing software upgrade; (2) authorize the City Manager to sign the
Professional Services Agreement and Software License and Maintenance Agreement; and (3)
amend current year budget by $16,500 to pay for upgrade and maintenance service
agreement.
BACKGROUND
The version of Itron's MV -90 used to bill time -of -use customers is DOS command -driven and
difficult to use. Because it is not user-friendly we are unable to use the full functionality of the
system. Moreover, Itron notified us that they will support this version only through May
2007, as it is being replaced by a new version, MV-90xi, which is a windows platform with a
graphical user interface.
The new MV-90xi version is menu -driven and has tutorials, graphics, and is easier to use.
Enhancements include the ability to e-mail monthly usage graphs to our time -of -use
customers with individualized notes. Light & Water intended to budget for this purchase in
2005-06, however, we were recently notified by Itron that the software price of $3,825. will
be increasing by $3,500 every six months until it reaches the final price of $12,500. The
earlier we buy -in the better cost we will get.
While Itron claims the file formats are the same for the current MV -90 and the upgraded MV-
90xi, Azusa Light & Water plans on taking a conservative approach by delaying installation of
the MV-90xi until September 2005. This delay is intended to avoid any negative impact on
the legacy Customer Information System (CIS) currently in use and to allow a break-in period
on the new CIS.
014
During this fiscal year, we request authorization to purchase the MV-90xi software with sales
tax and shipping and the required annual maintenance service, along with a compatible server
for a total of $16,500. During fiscal year 2005-06, there will be $10,000 in additional costs
for installation, training, project management services, travel and per diem for the Itron
technician. If this upgrade is approved, these costs will be budgeted next fiscal year.
The Professional Services Agreement and Software License and Maintenance Agreement have
been reviewed by our attorney.
FISCAL IMPACT
Total cost impact of this upgrade is $26,500; of this amount, $16,500 is to be incurred this
fiscal year, and $10,000 will be incurred during fiscal year 2005-06. Since this project is for
metering of electric services rendered, it is recommended that a budget amendment be
approved with funding coming from Election Fund 33 fund balance via an allocation to
Customer Service. The expenditure account to be amended is 31-40-711-903-6527.
Prepared by: Karen Vanca, Assistant Director Customer Care &Solutions
015
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: NOVEMBER 22, 2004
SUBJECT: APPROVAL OF REQUEST FOR ANNEXATION OF PARCEL 8624-024-902
(NURSERY RESERVOIR SITE) TO COUNTY SANITATION DISTRICT NO. 22 OF
LOS ANGELES
RECOMMENDATION
It is recommended that the Utility Board/City Council approve the Request For Annexation of
Parcel 8624-024-902 to County Sanitation District No. 22 of Los Angeles.
BACKGROUND
The developer of the Monrovia Nursery Property, Azusa Land Partners (ALP), is requesting
annexation of its property to County Sanitation District No. 22 of Los Angeles. The Nursery
Reservoir site is currently owned by the City of Azusa, but, in the future, the site will be
transferred to ALP in exchange for another reservoir site elsewhere in the Monrovia Nursery
property. ALP has asked the City of Azusa to request annexation of the Nursery Reservoir site
so that, at the time of transfer, ALP will not be required to make another request for
annexation for the Nursery Reservoir site.
FISCAL IMPACT
There is no fiscal impact for this approval.
Prepared by:
Chet Anderson, Assistant Director of Water Operations
Attachments
@N-
Reso re Annexation
LACOSanDist
to LACoSD.doc
Applic.doc
a
RESOLUTION NO.
A RESOLUTION OF THE UTILITY BOARD/CITY
COUNCIL OF THE CITY OF AZUSA REQUESTING
ANNEXATION OF PARCEL 8624-024-902 TO COUNTY
SANITATION DISTRICT NO. 22 OF LOS ANGELES.
THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. Parcel No. 8624-024-902 is owned by the City of Azusa as a site for its
Nursery Reservoir. Said reservoir site is to be transferred at an unspecified time in the future to
the Azusa Land Partners in exchange for a site elsewhere within the Azusa Land Partners
Monrovia Nursery development. Azusa Land Partners is requesting annexation of its Monrovia
Nursery property into the service area of the County Sanitation District No. 22 of Los Angeles
and has asked the City of Azusa to request annexation of the Nursery Reservoir site to facilitate
the future transfer of the site.
Said Request For Annexation to County Sanitation District No. 22 of Los Angeles is hereby
approved and the City Clerk is hereby authorized and directed to cause the same to be filed for
record in the office of the County Recorder of said County.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS 22nd day of November, 2004
Cristina C. Madrid, Mayor
ATTEST:
Vera Mendoza, City Clerk
017
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City
Council of the City of Azusa at a regular meeting of the Azusa Light & Water Utility Board on
the 22nd day of November, 2004.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Vera Mendoza, City Clerk
()i8
A (03-32)
REQUEST FOR ANNEXATION
TO
COUNTY SANITATION DISTRICT NO. 22 OF LOS ANGELES
The undersigned, owners of the property listed in this application, hereby request the Board of
Directors to annex said property to said District, and represent that the property is:
1. Contiguous to said District, or if not contiguous, may be drained by gravity to a trunk
sewer of the District.
2. Not included in whole or in part in any District formed for purposes similar to those of
the District.
3. To be benefited by its inclusion in the District.
It is further understood and agreed to by the undersigned that:
A. In the event a connection directly or indirectly to the sewage system of said District, from
sewers of the property to be annexed is permitted prior to the completion of annexation
proceedings, said connection shall be considered temporary and will become permanent
only upon final completion of the annexation proceedings. If for any reason the
annexation to said District, of the subject property severed by the temporary connection is
not completed, said property will be required to disconnect, unless a contract is entered
into with the District providing for compensation to the District for off-site sewage
disposal services for said property.
B. In the event the annexation and proceedings are not completed by reason of any action or
inaction of any of the undersigned, all costs and expenses incurred by the District in
processing the annexations shall be deducted from any deposit made by the undersigned
in payment of the required annexation fees.
0191
PROPERTY IDENTIFICATION SIGNATURE OF OWNER
*Print or type name and title below signatures
Azusa Land Partners, LLC owned parcels:
8684-022-012,
8608-003-002, 003, 005, 006,
8684-024-041, 042, 043
8625-001-001,
8625-002-002,
8625-004-007, 012, 129, 130
8625-005-014, 018, 019,
8625-008-001,005,
8625-009-011,012,
8625-010-008,
8625-029-005,006
020
PROPERTY IDENTIFICATION SIGNATURE OF OWNER
*Print or type name and title below signatures
Azusa Light & Water owned parcel
8624-024-902
021
PLEASE NOTE: THESE QUESTIONS ARE ADDRESSED TO THE PROPERTY BEING
ANNEXED ONLY, NOT THE CITY OR COUNTY AREA THE PROPERTY IS
LOCATED IN.
I. JUSTIFICATION
A. What are the reasons for the initiation of this proposal? (Be specific): The reason
for the initiation of this proposal is to provide sewer service to a new development
outside of a current sanitation district.
II. GENERAL DESCRIPTION
A. Description of proposal location: The property is currently used as a nursery and is
located north of Foothill Blvd bounded in general by Pasadena Ave on the west, the
San Gabriel Foothills to the North, Azusa/Glendora City boundary on the east and the
AT&SF railroad on the south. Sierra Madre bisects the property (Sierra Madre will
continue to run through the property in the future).
B. ' Major Streets and Highways: Sierra Madre bisecting the property east and west,
Foothill Blvd. to the South.
C. Proposal Area — Give a detailed description of the proposal area and what is
consists of (e.g. Existing commercial corridors, residential communities, existing
redevelopment area, public utility right-of-way, relevant structures, etc.) The
property is currently agricultural land, used for nursery operations. There are
residential neighborhoods on the east, west and south sides with an open space area
(San Gabriel Mountains) to the north of the project site.
D. Land Area: The total land area being annexed will be verified with the district.
E. General description of topography: The site falls from north to south with the
northerly 1/3 of the site being steep mountainous terrain. The remainder of the site is
gentle sloping with an average gradient of 5% as it falls to the south.
F. Describe physical boundaries (rivers, mountains, freeways, etc.) and natural
boundaries of the subject territory: The northerly portion is bounded by the
foothills of the San Gabriel Mountains. The westerly portion is bounded primarily by
existing residential units. The southerly portion is bounded by the AT&SF railroad,
the Azusa -Pacific University and some residential units. The easterly portion is
bounded by the City of Glendora and the City of Azusa boundary and some existing
residential units.
III. SOCIAL FACTORS
A. Population (please see note at the top of this page)
022
1. Total population in subject area (within the parcel to be annexed only):
The parcel is currently developed as a nursery with no residential units located
on the property at this time.
2. If the proposal includes development, what is the estimated population of
the proposed area? The project was approved for a maximum of 1,250
dwelling units. Assuming a 3.5 capita/unit equates to 4,375 capita. The project
includes a K-8 school.
3. Number of registered voters (indicate the source of information): Currently
the property is being used as a Nursery therefore there are no permanent
residents located on the property.
4. Estimated population increase in the subject area within the next ten
years: Within the subject area the project has a cap of 1,250 units, no
additional units are proposed and consequently there would be no increase in
population beyond that estimated in item 2 above.
B. Housing
1. Number and types of existing dwelling units in the subject area (indicate
source of information): Currently there are no dwelling units on the property.
2. Estimated increase in dwelling units in the subject area within the next ten
years: 1,250 dwelling units are proposed. Approximately 600 units are
proposed as single family detached and the balance of 650 units could consist
of a mix of detached town homes or stacked flats.
IV. LAND USE
A. What is the present land use?
1. In the subject area: Nursery/Agricultural Use
2. In the surrounding area: There are residential neighborhoods surrounding the
site, a university (Azusa Pacific) and some commercial to the South of the
property.
B. What are the existing zones in the subject area? The zone of the property has been
changed from agricultural to Monrovia Nursery Specific Plan which comprises several
densities of residential zoning and a small portion of commercial zoning.
C. Describe any proposed change in land use and/or zoning related to this proposal:
The new zoning for the property has been approved therefore the agricultural zoning
that used to be on the parcel has changed to residential and commercial by the City.
D. Is the proposal consistent with city or county general plans, specific plans, and
other adopted land use policies? Approval of the project included a specific plan,
zone change, general plan amendment and EIR.
E. Does this proposal involve development of property?
023
1. Type of development proposed: Residential with both multi family and low
density residential and one parcel that will contain about 50,000 square feet of
commercial property.
2. If commercial or industrial development is proposed, describe the project to
include type of business or industry to be located on the site (include square
footage). At this point the type of commercial uses that will be on the property
are unknown however the approximate size of the commercial development will
be approximately 50,000 square feet.
3. If residential development is proposed, indicate type (single-family,
apartment, etc.), number of units, and the number of dwelling units per
acre: Approximately 600 single family units with an estimated 5 units/acre and
approximately 650 multi -family units with densities in the range of 12-36
units/acre.
4. At what stage is the proposed development (include permits, license, etc.,
which have been issued to date and what remains to be accomplished in this
project)? The project has a certified EIR, approvals for zone change, specific
plan, and vesting tentative tract map. No grading or improvements have begun.
Site has nursery operations ongoing.
5. What effect would denial of this proposal have on the proposed
development? Denial of this annexation would be detrimental to the viability of
the project.
6. What other government services will be required for the development,
which are not now available? None known.
7. Are there any agricultural or open -space lands within the proposal area?
What is the effect of this proposal on agricultural or open -space lands? The
project was owned by Monrovia Nursery and is currently operating as a Nursery.
The nursery operations will move off in stages beginning January 2005. Existing
open space areas on the northern portion of the site will remain as identified in
the project EIR.
V. ENVIRONMENTAL DATA
A. Indicate what action, if any, has been taken pursuant to the California
Environmental Quality Act:
An Environmental Impact Report has been adopted. (Submittal includes 5 copies
each of the Final EIR and the Notice of Determination approved by a City or
County Regional Planning Commission.)
024
ara�M1 -
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES,
DATE: NOVEMBER 22, 2004 v p
SUBJECT: CALIFORNIA INDEPENDENT SYSTEM OPERATOR ANNUAL TRANSMISSION
REVENUE BALANCING ACCOUNT ADJUSTMENT ("TRBAA") FILING
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve the attached resolution
authorizing staff to prepare and file the annual TRBAA filing with the Federal Energy Regulatory
Commission ("FERC") related to City's participation in the California Independent System
Operator's ("CAISO") market as a Participating Transmission Owner ("PTO").
BACKGROUND
The City became a PTO in the CAISO market as of January 1, 2003. Pursuant to the current
CAISO Tariff and City's Transmission Owner's Tariff, the City is to track on an annual basis the
recovery of certain transmission revenues in a TRBAA account. Any under collection or over
collection of the revenues in the current calendar year is to be collected from or refunded to
the CAISO in the immediately following calendar year.
The City is required to make an annual filing with the FERC detailing the calculations of under
collection or over collection of revenues as determined through the September 30 transaction
date of each calendar year. Staff has made preparatory calculations and will finalize the filing
upon receipt of the remaining revenue data from the CAISO by the end of November.
The attached Resolution authorizes the staff to file the TRBAA annual filing once it is finalized.
FISCAL IMPACT
Staff estimates that the City over collected about $25,600 in certain CAISO transmission
revenues for the period of July 1, 2003 through June 30, 2004. Such over collection will be
025
returned to the CAISO market in the form of a reduction in the transmission revenue
requirement for collections during calendar year 2005. Since TRBAA account represents a
true -up of transmission costs vs. revenues, its financial impact to the Light Fund is neutral.
Prepared by:
Bob Tang, Assistant Director of Resource Management
Attachment:
TRSAA
RES_2005_LINE_Rev
02G
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA ESTABLISHING THE TRANSMISSION
REVENUE BALANCING ACCOUNT ADJUSTMENT IN
ACCORDANCE WITH AZUSA'S TRANSMISSION OWNER
TARIFF AND PROVIDING FOR TARIFF SHEET
CHANGES TO IMPLEMENT THE ADJUSTMENT
WHEREAS, the City of Azusa is a Participating
Transmission Owner ("PTO") with the California Independent
System Operator ("ISO") and the Federal Energy Regulatory
Commission ("FERC") has approved its Transmission Owner Tariff
("TO Tariff"); and
WHEREAS, the City of Azusa TO Tariff provides for
periodic recalculation of the Transmission Revenue Balancing
Account Adjustment ("TRBAA") which is a ratemaking mechanism
designed to ensure that all Transmission Revenue Credits are
flowed through to transmission customers; and
WHEREAS, on September 23, 2002, the City Council of
the City of Azusa adopted Resolution No. 02-C101 establishing
Ithe TRBAA for calendar year 2003 and the City made its TRBAA
filing on October 18, 2002 in FERC Docket No. EL03-14; and
WHEREAS, the FERC issued its decision on December 23,
2002 as clarified on February 6, 2003, accepting the City's
filing, subject to refund, effective January 1, 2003 and
referencing that all PTOs, including the City, will make another
TRBAA recalculation effective January 1, 2004, in accordance
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with the terms of the ISO Tariff as amended as a result of
FERC's acceptance of ISO Amendment No. 45; and
WHEREAS, on November 24, 2003, the City Council of the
City of Azusa adopted Resolution No. 03-C99 establishing the
TRBAA for calendar year 2004 and the City made its TRBAA filing
on December 12, 2003 as revised on February 20, 2004 in FERC
Docket No. EL04-35; and
WHEREAS, the FERC accepted City's calendar year 2004
TRBAA filing on April 19, 2004; and
WHEREAS, the TRBAA filing will need to be made with the
FERC by early December upon the receipt of ISO settlement
statement information through September 30, 2004 and the
preparation of the calculations to determine the TRBAA; and
WHEREAS, the staff has performed the preparatory
calculations for the period of October 1, 2003 through September
30, 2004.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY of AZUSA AS FOLLOWS:
SECTION 1: The City Council of the City of Azusa
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Azusa
hereby authorizes the staff to file the required TRBAA filing
with the FERC upon the completion of all necessary verification
and validation of the ISO settlement statement data consistent
with the requirements as specified in the ISO Tariff and TO
Tariff.
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SECTION 3: The City Clerk of the City of Azusa shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
PASSED, APPROVED, AND ADOPTED this 22th day of November, 2004.
CRISTINA CRUZ MADRID, Mayor
(ATTEST:
0
IVERA MENDOZA, City Clerk
APPROVED AS TO FORM:
Im
Best Best & Krieger LLP
City Attorney
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I HEREBY CERTIFY that the foregoing Resolution No. 04 -
was duly adopted by the City Council of the City of Azusa, at a
regular meeting thereof, held on 22th day of November, 2004 by
the following vote of the Board.
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
Vera Mendoza, City Clerk
-4-
030
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES ^,'
DATE: NOVEMBER 22, 2004 w\ QC
SUBJECT: AUTHORIZATION TO ENGAGE THE PROFESSIONAL SERVICES OF NAVIGANT
CONSULTING TO CONDUCT A COST AUDIT OF SOUTHERN CALIFORNIA
EDISON KIRKWALL SUBSTATION CONSTRUCTION WORK
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council (1) authorize the staff to engage
Navigant Consulting through a Professional Service Agreement to conduct a cost audit of
Edison's construction costs for the Kirkwall Substation at a not -to -exceed cost of $23,925,
including 10% for contingencies; and (2) authorize the City Manager to execute the
professional services agreement once prepared.
BACKGROUND
As part of Kirkwall Substation project, the City advanced $5,650,000 to Edison for the
construction of (a) new 66 kV switchyard; (b) reconductoring of one existing distribution' line
and building one new distribution line; and (c) other ancillary distribution system upgrade
work related to the project.
Pursuant to the terms and conditions of the Kirkwall Substation Letter Agreement dated May
28, 2003 as further memorialized in the Kirkwall Substation Offer of Settlement dated
October 1, 2004, the City has the right to audit the costs incurred by Edison within 180 days
from the date Edison provides the final cost reconciliation currently anticipated to be
November 15, 2004.
03
Staff solicited proposals from professional consulting firms experienced in large engineering
project audits to assist the City in the audit work. Two proposals were received and
evaluated:
Navigant Consulting: $21,750
Pacific Construction Consultants: $24,900
Based on staff's evaluation, Navigant's proposal is the better of the two based on (a)
knowledge of the engineering project auditing; (b) cost; and (c) the close location of the
auditors facilitating the coordination efforts.
FISCAL IMPACT
Funds are available in FY 04-05 transmission account to pay for the cost of audit.
Prepared by:
Bob Tang, Assistant Director of Resource Management
032
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: ANN GRAF GAYNOR, INTERIM DIRECTOR OF INFORMATION TECHNOLOGY
DATE: NOVEMBER 22, 2004
SUBJECT: SOFTWARE SUPPORT FROM LUND PERFORMANCE SOLUTIONS
RECOMMENDATION
It is recommended that the Utility Board/City Council:
1. Waive formal sealed bids in accordance with Azusa Municipal Code Section 2-523
section C, no competitive market, which allows for acquisition of proprietary services
that can only be provided by one source.
2. Approve of a contract with Lund Performance Solutions, in the amount of $15,000.00,
for software support services, subject to any changes made by the City Attorney.
BACKGROUND
In order to adequately maintain and support our existing Customer Information System during
the period of conversion to a new Customer Information System, it has become critical to
retain a consultant with the level of expertise that will allow us to mitigate any software
problems.
Services provided by Lund will be as follows: 60 hours of consulting time to be used between
the periods of December 2, 2004 through June 30, 2005. If all these hours are not utilized
maintaining the MUIS system, an area has been identified where Lund's service will be
beneficial --in the archival of the MUIS data from the HP3000.
FISCAL IMPACT
Sufficient funds are available in the Information Technology Department's FY 2005 operating
budget in the division that supports the Utilities, under account 48-49-942-000-6493.
Prepared by:
Ann Graf, Interim Director of Information Technology
033
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: NOVEMBER 22, 2004 v �'
SUBJECT: REQUEST TO PURCHASE JACKETS FOR FIELD STAFF
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve (1) the purchase of 42
jackets with Azusa Light & Water logo to be worn as part of the uniform in cold or inclement
weather for all field staff and (2) purchase the jackets from the lowest bid vendor, Kathco:
BACKGROUND
Currently Azusa Light & Water field employees wear their own personal jackets in cold or
inclement weather. The jackets lack similarity and identification of Light & Water. This can
cause confusion for customers who may have concerns about the unidentified person(s) on or
near their property or who may be contacting them in person in response to a call of "lights
out" or "water leak" during non -business hours. This issue can be resolved by adding an
outer jacket with the Light & Water logo to the uniform. Employees will be authorized to wear
the jackets only when wearing their uniforms.
We went out for bids for jackets that will closely match field uniform colors, have a zip out
liner, and a hood. The liners and hoods will keep field employees appropriately comfortable
as the weather changes. Field staff had an opportunity to try on various style jackets to
determine which ones will be more comfortable when performing their work. Light & Water
recommends selecting lowest price bidder, Kathco.
FISCAL IMPACT
Total cost of $12,001.55 has been budgeted as follows:
Account # 33-40-735-880-6201 - $4,242.57
Account # 32-40-721-795-6201 - $4.909.91
Account # 31-40-711-902-6201 - $2,849.07
Prepared by: Karen Vanca, Assistant Director Customer Care & Solutions
034
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES<S j
DATE: NOVEMBER 22, 2004
SUBJECT: CONTRACT FOR MATERIALS EXCHANGE WEB SERVICE
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council: (1) approve of a three-year,
agreement with Genacom, Inc., for web services which would add a Materials Exchange
function to Azusa Light & Water's website; (2) authorize City Manager to execute contract
with Genacom; and (3) approve of a budget amendment using AB 939 fees in the amount of
$12,000 to pay Genacom, Inc. for web services during remainder of this fiscal year.
BACKGROUND
This is a continued item from last Utility Board meeting. At last month's meeting, three
questions were posed by Utility Board Members in consideration of a proposal by Genacom,
Incorporated, to provide a web service to the Utility which would allow residents and
businesses to exchange reusable items amongst themselves. The questions and responses
are provided below:
What is fund balance of our AB 939 fund? Current fund balance in this account is about
$107,700; this figure takes into consideration fund balance for 2002-2003, plus year end
balance for fiscal 2004, and year-to-date revenues/expenses.
What do other cities or customers think about Genacom's web services? Three of
Genacom's customers were contacted by staff: City of Napa, City of Santa Clarita and a non-
profit organization named Ecology Action of Santa Cruz. Two of these customers have been
working with Genacom for about 1 '/z years, and the other for about 7 months. Each provided
a generally favorable rating of Genacom's performance and all said they would use Genacom
again for the same service. While the City of Santa Clarita has not publicly launched its
service, it's testing has been positive and Santa Clarita rated Genacom's technical staff at a 10
on a scale of 1 to 10 with 10 being best.
035
How many Azusa residents have internet service? Since we began studying telecom services,
there have been many who have questioned whether Azusa residents use the internet as
much as residents in other cities. However, according to RW Beck, who conducted a
statistically representative survey of Azusa residents in October 2002, about 58% of Azusa
residents have internet access in their home. This is above the national average according to
the U.S. Department of Commerce report Understanding Broadband Demand —A Reviewof
Critical Issues, issued in September 2002, which reports that 52% of U.S. households had
Internet access as of December 2001. Additional information is attached from RW Beck's
report to the City, including information on business internet usage in Azusa.
Again, the set up costs for this service is $10,000 and the ongoing fee is $350 per month. As
an added incentive, Genacom is offering to reduce the cost by $1,000 if the service can be
launched by January 14, 2005. To see a sample of how this service works, go to
http://www.napamax.orWdefault.asp, http://www.promax.or¢, or
hhttp://reusemax.genacom.com. Genacom's proposal has been reviewed by our IT
Department and Athens Services and both are fine to proceed as proposed; City Attorney has
reviewed and approved professional services agreement.
FISCAL IMPACT
The total cost for this service would be about $21,600 over three years, or $1 1,100 during
the remainder of this fiscal year and $10,500 over the remaining 29 months of the contract.
It is proposed that AB 939 fee revenues be used and that accounts 28-40-750-065-4450
(revenue) and 28-40750-065-6625 (expense) be amended by $12,000.
Prepared by
Cary Kalscheuer, Assistant to the Director of Utilities
Attachments:
9
RWBeckReport.pdf
Azusa Incentive
ProfSvcAgreerrent-G
Proposal.doc
enacomdoc
036
■ Sixty-five percent of the households have a home computer with a modem.
Eighty-nine percent of those with a computer report having access to the Internet,
which translates to 58 percent of all respondents having Internet access in
their home. This is above the national average according the a U. S Department
of Commerce (Commerce Department) report Understanding Broadband
Demand -- A Review of Critical Issues, issued in September 2002, which reports
that 52 percent of U. S. households had Internet access as of December 2001.
■ Among all consumer respondents, one-third of the households (32 percent) report
having dial-up access, eleven percent say they connect through a cable modem
and 10 percent report having DSL service. This level of penetration of high-speed
access is slightly above the national average and reflects a higher level of DSL
usage than average. According. to the Federal Communications Corporation
(FCC) report released in July 2002, 11 million households and small businesses
5-4 R. W. Beck R\006169`D .010131Phase 3 RcWI\Phase.3.Dn(t-Final-Report\Task-5.dec 3117M
QUANTITATIVE RESEARCH
subscribe to high-speed lines, with cable being the dominant player with
approximately 64 percent market share.
Computer Ownership and Internet Access
Almost two-thirds of the households surveyed have a computer in their household
(65 percent). Table 5-3 summaries difference in computer ownership by various sub-
groups.
■ Prevalence of computer ownership increases with income and education. Eighty-
two percent of those with a household income between $60,000 and $99,000 and
84 percent of those with incomes over $100,000 have a computer in the home,
compared to 52 percent of households with an income of less than $30,000.
■ Seventy-eight percent of respondents with a college degree or more education
report owning a computer, compared to 36 percent of those who have not
completed high school.
■ Computer ownership is also related to age. Respondents over 65 years of age are
less likely than their younger counterparts to own a computer.
■ Incidence of computer ownership is also higher among households with children
than among residents without children in the home.
7
00
M
0% I .
Local phone Internet Access Monitored Security Data lines (WANor Cable N at work
provider -Verizon I . Service I LAN)
Figure 5-1: Current Services Among Businesses
Internet Access
Companies in Azusa appear to be progressive in terms of their Internet usage, with
85 percent reporting Intemet access and the majority of firms having dedicated access.
■ Among all businesses, just over one-half (52 percent) have dedicated access, that
is a line dedicated to Internet usage and not used for other functions such as voice
or fax. Thirty-two percent have dial-upservice over a regular telephone line.
■ Of those who report having dedicated access, approximately one-quarter have
DSL service (23 percent) and four percent have cable modem service. Another 12
percent indicate they connect at 56-K or slower meaning it is likely that they have
a dial-up line that is reserved for Internet usage and 44 percent were not sure of
their connection speed. The remaining 18 percent indicate they connect at a
5-2 R. W. Beck H900416TO2.010131Phase 3 RetaillPhase-3-Draft-Final-Repon\Taask-5.doc 3117103
QUANTITATIVE RESEARCH
variety of speeds between 256-Kpbs and 1.544-Mbps (T-1). Therefore, a total of
45 percent of business who report having dedicated Internet access are able to
articulate that they have high-speed connections, across the entire market this
translates to 24 percent of the business market in Azusa with high-speed
connections.
■ One-quarter of the businesses with Internet access (25%) use Verizon as their
Internet Service Provider. EarthLink and AOL also have significant shares of the
business market, as shown in Table 5-1.
Table 5-1
Internet Service Provider
Verizon
25%
EarthLink
22%
AOL
16%
MSN
5%
Charter Communications
5%
Other (various) 27%
Verizon has a larger share of dedicated customer base, while AOL is more dominant
among dial-up users.
a
Azusa Incentive Proposal 041013
Dear Cary Kalscheuer,
This is an incentive offering by Genacom Inc., service provider of the ReUseMAX On-
line Materials Exchange.
Genacom has the capability to set up, test, launch, and Intemet test, and have ready for
public use, the ReUseMAX Exchange in about 4 weeks. Most of the additional schedule
is based on the time for a client to get their internal project committee to send us the
required files and to accept each stage of the development.
We have found that our clients whom we offer a financial incentive to accelerate our
standard program Workplan and Schedule of Performance Milestones, tend to participate
in launching their project in a shorter time period.
Therefore, based on an acceptance date of November 29th, 2004, and a "ready for public
use on the Intemet' date of January 14th, 2005, we are offering a one thousand dollar
($1000.00) discount in the set up fee for the ReUseMAX Exchange provided we receive
the logo, color palette, content, or Client Specifications for layout of User Interface, by
December 3a`, 2004.
Note: as in the demonstration, all of the content management fields are set up to be
added, edited, or deleted by the client at any time.
We look forward to working with you on this important program.
Please acknowledge receipt of this Incentive via email.
Best Regards
Greg Weinerth
ReUseMAX Program
grclZ@genacom.com
888-615-3573
707-226-7000
049.
CITY OF AZUSA
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 22nd day of November, 2004 by and
between the City of Azusa, a municipal organization organized under the laws of the State of
California with its principal place of business at 213 East Foothill Boulevard, Azusa, California
91702-1295 ("City") and Genacom Inc. a California Corporation, with its principal place of
business at 1734 Suite D, Jefferson Street, Napa, CA 94558 ("Consultant"). City and Consultant
are sometimes individually referred to as "Party" and collectively as "Parties"
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the City on the terms and conditions set forth in this
Agreement. Consultant represents that it is experienced in providing Internet based Material
Exchange, design, database, and hosting services to public clients, is licensed in the State of
California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services for the Azusa Light and Water,
On -Line Materials Exchange project ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to
the City all labor, materials, tools, equipment, services, and incidental and customary
work necessary to fully and adequately supply the professional On -Line Materials
Exchange consulting services necessary for the Project ("Services"). The Services are
more particularly described in Exhibit "A" attached hereto and incorporated herein by
reference. All Services shall be subject to, and performed in accordance with, this
Agreement, the exhibits attached hereto and incorporated herein by reference, and all
applicable local, state and federal laws, rules and regulations.
RVPUBWGS\544364
042
3.1.2 Term. The term of this Agreement shall be from November 22, 2004 to
November 30, 2007, unless earlier terminated as provided herein. Consultant shall complete the
Services within the term of this Agreement, and shall meet any other established schedules and
deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Consultant or under its supervision. Consultant will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Consultant retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall also not be employees of City and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other
amounts due such personnel in connection with their performance of Services under this
Agreement and as required by law. Consultant shall be responsible for all reports and obligations
respecting such additional personnel, including, but not limited to: social security taxes, income
tax withholding, unemployment insurance, disability insurance, and workers' compensation
insurance.
� 3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Consultant's conformance
with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon
request of City, Consultant shall provide a more detailed schedule of anticipated performance to
meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that
certain key personnel will perform and coordinate the Services under this Agreement. Should
one or more of such personnel become unavailable, Consultant may substitute other personnel of
at least equal competence upon written approval of City. In the event that City and Consultant
cannot agree as to the substitution of key personnel, City shall be entitled to terminate this
Agreement for cause. As discussed below, any personnel who fail or refuse to perform the
Services in a manner acceptable to the City, or who are determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a
threat to the safety of persons or property, shall be promptly removed from the Project by the
Consultant at the request of the City. The key personnel for performance of this Agreement are
as follows: David Northcutt, Ken Fitch, Greg Weinerth.
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3.2.5 City's Representative. The City hereby designates Cary Kalscheuer, or his
or her designee, to act as its representative for the performance of this Agreement ("City's
Representative"). City's Representative shall have the power to act on behalf of the City for all
purposes under this Contract. Consultant shall not accept direction or orders from any person
other than the City's Representative or his or her designee.
3.2.6 Consultant's Representative. Consultant hereby designates David
Northcutt, President, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant's Representative"). Consultant's Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this Agreement.
The Consultant's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City
staff in the performance of Services and shall be available to City's staff, consultants and other
staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Consultant represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, including a City Business License, and that such licenses and approvals shall be
maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Consultant shall perform, at its own cost and expense and without
reimbursement from the City, any services necessary to correct errors or omissions which are
caused by the Consultant's failure to comply with the standard of care provided for herein. Any
employee of the Consultant or its sub -consultants who is determined by the City to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat
to the safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant
and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and
in compliance with all local, state and federal laws, rules and regulations in any manner affecting
the performance of the Project or the Services, including all Cal/OSHA requirements, and shall
give all notices required by law. Consultant shall be liable for all violations of such laws and
regulations in connection with Services. If the Consultant performs any work knowing it to be
contrary to such laws, rules and regulations and without giving written notice to the City,
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Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend,
indemnify and hold City, its officials, directors, officers, employees and agents free and harmless,
pursuant to the indemnification provisions of this Agreement, from any claim or liability arising
out of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence
Work under this Agreement until it has provided evidence satisfactory to the City that it has
secured all insurance required under this section. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the City that the subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Consultant, its agents, representatives, employees or subcontractors.
Consultant shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2) Workers' Compensation
and Employer's Liability: Workers' Compensation insurance as required by the State of
California and Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2) Workers' Compensation and Employer's Liability: Workers' Compensation limits as required
by the Labor Code of the State of California. Employer's Liability limits of $1,000,000 pet
accident for bodily injury or disease.
3.2.10.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms supplied or
approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be
endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insured with respect to the Work or operations
RVPUBWGS�544364
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performed by or on behalf of the Consultant, including materials, parts or equipment furnished in
connection with such work; and (2) the insurance coverage shall be primary insurance as respects
the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall
stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage. Any insurance or self-insurance maintained by the City, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall
not be called upon to contribute with it in any way.
(B) Automobile Liabilitv. The automobile liability policy shall
be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be
primary insurance as respects the City, its directors, officials, officers, employees, agents and
volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's
scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its
directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the City, its directors, officials,
officers, employees, agents and volunteers for losses paid under the terms of the insurance policy
which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy required by this
Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to the City; and (B) any failure to comply with reporting or other
provisions of the policies, including breaches of warranties, shall not affect coverage provided to
the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.5 Separation of Insureds: No Special Limitations. All
insurance required by this Section shall contain standard separation of insureds provisions. In
addition, such insurance shall not contain any special limitations on the scope of protection
afforded to the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.6 Deductibles and Self -Insurance Retentions. Any
deductibles or self-insured retentions must be declared to and approved by the City. Consultant
shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects the City, its directors, officials, officers,
employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing
payment of losses and related investigation costs, claims and administrative and defense
expenses.
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3.2.10.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A: VIII, licensed to do business in
California, and satisfactory to the City.
3.2.10.8 Verification of Coverage. Consultant shall furnish City
with original certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage on its
behalf, and shall be on forms provided by the City if requested. All certificates and
endorsements must be received and approved by the City before work commences. The City
reserves the right to require complete, certified copies of all required insurance policies, at any
time.
3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant shall at
all times be in compliance with all applicable local, state and federal laws, rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed. Safety precautions as
applicable shall include, but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation
shall not exceed Ten Thousand Dollar ($10,000.00) set up and Three Hundred and Fifty
($350.00) per month without written approval of City's Representative. Extra Work may be
authorized, as described below, and if authorized, will be compensated at the rates and manner
set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by
Consultant. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within 45 days of receiving such statement, review
the statement and pay all approved charges thereon.
RVPUB\NGS'544364
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
0
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expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may
request that Consultant perform Extra Work. As used herein, 'Extra Work" means any work
which is determined by City to be necessary for the proper completion of the Project, but which
the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization
from City's Representative.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred under this Agreement. All such
records shall be clearly identifiable. Consultant shall allow a representative of City during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice to -
Consultant, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Consultant of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Consultant shall be compensated only for those services which have been adequately rendered to
City, and Consultant shall be entitled to no further compensation. Consultant may not terminate
this Agreement except for cause:
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided
herein, City may require Consultant to provide all finished or unfinished Documents and Data
and other information of any kind prepared by Consultant in connection with the performance of
Services under this Agreement. Consultant shall be required to provide such document and other
information within fifteen (15), days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in
whole or in part as provided herein, City may procure, upon such terms and in such manner as it
may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
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Consultant:
Mr. David Northcutt
Genacom Inc.
1734 Suite D, Jefferson Street
Napa, CA 94558
City: Mr. Cary Kalscheuer
Assistant to the Director of Utilities
Azusa Light and Water
City of Azusa
213 East Foothill Blvd.
Azusa, CA 91702-1295
Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at
its applicable address. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
+ 3.5.3.1 Documents & Data• Licensing of Intellectual Property. This
Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or
sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications, studies, drawings, estimates, and other documents or works of authorship fixed in
any tangible medium of expression, including but not limited to, physical drawings or data
magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be
prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require
all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license
for any Documents & Data the subcontractor prepares under this Agreement. Consultant
represents and warrants that Consultant has the legal right to license any and all Documents &
Data. Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to Consultant by
the City. City shall not be limited in any way in its use of the Documents and Data at any time,
provided that any such use not within the purposes intended by this Agreement shall be at City's
sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data,,input record data, written
information, and other Documents and Data either created by or provided to Consultant in
connection with the performance of this Agreement shall be held confidential by Consultant.
Such materials shall not, without the prior written consent of City, be used by Consultant for any
I
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purposes other than the performance of the Services. Nor shall such materials be disclosed to
any person or entity not connected with the performance of the Services or the Project. Nothing
furnished to Consultant which is otherwise known to Consultant or is generally known, or has
become known, to the related industry shall be deemed confidential. Consultant shall not use
City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or
the Project in any magazine, trade paper, newspaper, television or radio production or other
similar medium without the prior written consent of City.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising out of or in connection with this
Agreement, the prevailing party in such litigation shall be entitled to have and recover from the
losing party reasonable attorney's fees and all other costs of such action.
3.5.6 Indemnification. Consultant shall defend, indemnify and hold the City, it
officials, officers, employees, volunteers and agents free and harmless from any and all claims,
demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to
property or persons, including wrongful death, in any manner arising out of or incident to any
alleged acts, omissions or willful misconduct of Consultant, its officials, officers, employees,
agents, consultants and contractors arising out of or in connection with the performance of the
Services, the Project or this Agreement, including without limitation the payment of all
consequential damages and attorneys fees and other related costs and expenses. Consultant shall
defend, at Consultant's own cost, expense and risk, any and all such aforesaid suits, actions or
other legal proceedings of every kind that may be brought or instituted against City, its directors,
officials, officers, employees, agents or volunteers. Consultant shall pay and satisfy any
judgment, award or decree that may be rendered against City or its directors, officials, officers,
employees, agents or volunteers, in any such suit, action or other legal proceeding. Consultant
shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for
any and all legal expenses and costs incurred by each of them in connection therewith or in
enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be
restricted to insurance proceeds, if any, received by the City, its directors, officials officers,
employees, agents or volunteers.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the
State of California. Venue shall be in Los Angeles County.
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3.5.9 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.10 City's Right to Employ Other Consultants. City reserves right to employ
other consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.13 Construction; References: Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Consultant include all personnel, employees, agents, and
subcontractors of Consultant, except as otherwise specified in this Agreement. All references to
City include its elected officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content, or intent of this Agreement.
3.5.14 Amendment: Modification. No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel, or otherwise.
3.5.16 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.5.17 Invalidity: Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
RVPUB\NG5%544364 10
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solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. For breach or
violation of this warranty, City shall have the right to rescind this Agreement without liability.
For the term of this Agreement, no member, officer or employee of City, during the term of his or
her service with City, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or
applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related to
initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff
or termination. Consultant shall also comply with all relevant provisions of City's Minority
Business Enterprise program, Affirmative Action Plan or other related programs or guidelines
currently in effect or hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it
is aware of the provisions of Section 3700 of the California Labor Code which require every
employer to be insured against liability for Worker's Compensation or to undertake self-insurance
in accordance with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of
the work required by this Agreement, except as expressly stated herein, without prior written
approval of City. Subcontracts, if any, shall contain a provision making them subject to all
provisions stipulated in this Agreement.
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CITY OF AZUSA
L-32
Date:
Attest:
Julie Gutierrez
City Manager
City Clerk
Approved as to Form:
Best Best & Krieger LLP
City Attorney
Date:
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Date:
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GENACOM INC.
David Northcutt
President
053
ExIIIBIT "A"
SCOPE OF SERVICES
REUSEMAX SOFTWARE
ReUseMax is an On -Line Materials Exchange Software package, consisting of a web enabled
user interface and a dynamically driven -active page database that resides on a web server that is
linked to the Internet. The Standard features and functions include:
USER INTERFACE
Browsers
Browsers can enter the Exchange and view listings.
Once they see an item listed as available that they wish to receive, or if they have an item that is
wanted by a registered user that they want to provide, then they need to become a Registered
User to complete the exchange.
Registered Users
Registered Users can list items to be approved by a Moderator prior to launch to the Internet.
Registered Users can list items they want to receive that will be approved by a Moderator prior to
launch to the Internet.
Registered Users must complete a minimum of three fields to become a Registered User, email
address, which is their user -name, and the password twice.
Listings
Listings are materials Available that someone else may want to reuse.
Listings are materials Wanted that someone else may want to discard.
Some materials may be free of charge and some may have a price posted or unposted, depending
on the Client.
Listing Forms
Listing forms include material categories that model after the CalMax categories.
Weight, the weight of the material is recorded at the time of the listing. If someone does not
know the weight, a weight table is provided to assist in the estimate of the weight.
Photo, a photo of the listed item may be posted for view.
Exchanges
Exchanges occur when one registered user asks to contact another registered user to exchange
material. At that point, the Requesting Registered User authorizes giving their contact
information to the Listing Registered User. The Listing Registered User receives an email with
the contact information for the Requesting Registered User and then the two parties make
personal contact via email or telephone to make arrangements to exchange the material.
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Pending Exchanges
Once the email is sent to the Listing Registered User, the material is taken off the available list
and the web and moved to the Pending Exchange file.
**Two weeks after the material is in the Pending Exchange file, the Listing Registered User
receives an automatic email with a link back to the lasting with a request to:
a Confirm the Exchange and move the listing to completed exchange file.
b Keep the exchange as Pending as arrangements have been made for the exchange, but not
completed.
c Confirm a partial exchange of material and edit the existing listing to reflect the balance
of the material that is then re -posted as a listing.
d Confirm the Exchange has not occurred and delete the listing.
Confirmed Exchanges
Once the Listing Registered User confirms an exchange, the weight of the material exchanged is
recorded and available in the Reports.
ADMINISTRATIVE DASHBOARD
The Client has access to the Administrative Dashboard via a login and password.
Permissions
The Client may have up to three levels of permissions to their staff for access to the
Administrative Dashboard:
Read Only: View only Dashboard, back office and reports
Moderation: Post content management articles.
Confirm listing content is appropriate for Internet and approve and Post
listings.
Reports View, Post, Confirm, Approve, and Compile and print dynamic reports
The Standard license allows up to 10 people to have permissions.
Approval
All listings are reviewed and approved by a Client Moderator prior to posting to the Internet. If
the listing is appropriate, approval is a one -click process. If the Client Moderator chooses to edit
the listing, it is to their discretion regarding internal policies.
Content Management
Standard services include 10 navigation buttons of internal links to content management for such
categories as: Newsletters, Events, FAQ, Resources, About Us, Register, Sponsors, Testimonials,
Local Recycling Info, and My Profile. Client may rename any of these categories.
Categories
ReUseMax is set up based on the 15 Parent Categories for material types.
Client, at their option, may add subcategories to these 15 Parent Categories.
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Exchange Listing
This is a list of the Approval Status of each listing. At a glance the Reports Permission can view
the status of each listing. This also allows the Reports Permission to view the individuals
performing exchanges to see their listings and measure their level of participation with the
exchange.
System
This is the dynamic database of all listings, content, materials categories, weights, and status of
exchanges. The person with the Reports Permission can compile any type of report, for any
date/time period from the beginning date of the exchange to the present date. This includes the
records of the total tonnage of diverted material for AB939 reporting.
Import / Export to XML, CSV
This allows the Export of Reports from System above to an Excel Spreadsheet via a Comma
Separated Value (CSV) file.
This also allows the import and export of data and listings from other ReUseMax materials
exchanges. This import / export function is intended for adjacent cities or counties that have
ReUseMax licenses to import and export listings to and from each other.
Note: Adjacent cities and counties must set up their own agreements to import and export data
and listings, and ReUseMax will facilitate that data exchange at an additional fee. See Program
Schedule.
Note: Currently, most other exchanges are not dynamic and do not collect information in the
data -fields comparable to ReUseMax and therefore, importing data from other exchanges must
be done manually by the Moderator.
CUSTOMIZATION OF REUSEMAX EXCHANGE SOFTWARE TO CLIENT
SPECIFICATIONS
Logo and Color Palette
Included in the Standard license is an adaptation of the Client's logo and color palette to the User
Interface of the Materials Exchange.
Note: On bottom of each page of Exchange, ReUseMax reserves the right to have an active link
that says "Powered by ReUseMax" with the ReUseMax logo. This will be an appropriate size to
flow with the look and feel of the page.
Initial Set Up
Initial set up includes Client providing to ReUseMax all content for Content Management, links,
configurations, graphics, photos, and visual images to be part of the original launch of the
Exchange. Any proposed schedule is based on the assumption that all Client approved materials
are presented to the ReUseMax Project Manager at once.
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Header / Footer
A custom Header and Footer that may be required by municipality policies regarding websites is
included in the Standard set up fee as long as it is included in the original content files at the time
for the Initial Set.Up of the Exchange. Subsequent Header and Footer additions are considered a
service fee.
Testing
ReUseMax performs a thorough review and test of each new Exchange while on our staging
servers and prior to launch to the Internet. This is a team effort. We encourage the Client to
have several people to simultaneously review and test the Exchange so we can make all edits and
technical corrections prior to and soon after launch.
WEBSITE HOSTING
OF
REUSEMAX EXCHANGE SOFTWARE
Hosting on ReUseMax Servers
ReUseMax is hosted at Verio Web Hosting.
ReUseMax is hosted on the Internet on our own servers at a Verio shared hosting and co -location
facility. Verio is a Tier One Internet provider. It is the worlds largest web hosting company with
many redundant and back up systems to keep the website continuously on-line. Since the
ReUseMax Application Service is not on municipal servers, or behind their firewalls, there are
no issues of programming languages, protocols or security that will interfere with the existing
Municipal systems. You can get more Verio hosting information at www.verio.com.
TECHNICAL UPDATES
The ReUseMax Team is continuously finding new and better ways to implement the technology
of this Materials Exchange. On a regular basis we will provide these updates to all of our Client
Exchanges at one time. Whenever we do this we will give you prior notification, and inform you
what the Update is, and how it will benefit your Exchange. We normally perform these Updates
around midnight so as not to interfere with higher traffic times of the day. These are included in
the licensing agreement.
RVPUBWGS\5"364 A-4
057
ExHHtIT "B"
SCHEDULE OF SERVICES
WORKPLAN AND
SCHEDULE OF PERFORMANCE MILESTONES
Schedule begins the Week following receipt of the signed agreement with the Client.
Schedule
Week One Kickoff Conference Call
Week Two Receive from Client all Designs, Logos, Color Palettes, Content,
Programming Modifications to ReUseMax Exchange to conform to Client
Specifications.
Week Three Customer Accepts Visuals of Exchange
Week Four Completion of Programming Modifications to ReUseMax Exchange to
conform to Client Specifications.
Customer Acceptance of Programming Modifications
Week Five Begin Testing
Week Six Complete Testing, Customer Acceptance,
Week Seven Soft Launch to Internet.
Week Eight Test on all platforms on the Internet, Ready for Public Use on Internet
Week Nine Client Enrolls everyone in Municipal Offices, employees, to begin using
site (and assist with site application on line, with full operation)
Week Ten Starts placing ads for promotion program for community.
Weekly conference calls for entire project will be arranged at Kick Off Conference Call.
Projects are all performed via email, database postings, telephone, and telephone conference
calls. Site visits to the clients are not included in this scope of work or in cost estimates.
9 ;s
EXHIBIT "C;
COMPENSATION
FEE FOR SERVICES
All Setup Services noted in above Scope of Work
including Software and Customization: $10,000.00
Monthly fee includes Software Licensing, Internet hosting, updates and upgrades to the
Exchange, and one hour of monthly technical support. 350.00
Payment Terms: 50% deposit with (at end of Week 2) Authorization and Purchase Order
25% at the beginning of Testing
25% upon Ready for Public Use on Internet, net 10 days.
Monthly Fee, payment by agreed upon method of both accounting departments.
This completes the Scope of Work and Fees for this Agreement.
ADDITIONAL SERVICES
Additional services, modular upgrades and fees are provided on the attached Excel spreadsheet
which may be updated from time to time.
Accepted and Agreed
CITY OF AZUSA
Julie Gutierrez
City Manager
Date:
RVPUBWGS�544364
LE
Date:
C-1
GENACOM INC.
David Northcutt
President
059
EXHIBIT "D"
ADDITIONAL SERVICES
ReUseMAX On -Line Materials
Exchange
Schedule of
Services
Component
Description
Initial Setup & Hosting
Initial Setup
Database Sharing
Interactive
Database
Monthly
License
Site Planning
Site
Marketing
Analysis &
Plan
RVPUSNNGS\544364
$10,000
Greg Weinerth
greg@ReUseMAX.com
888-615-3573
707-226-7000
Notes
Service Description
$350/Month The Primary seat is the seat
mechanism all Cities and Regions
report through.
Primary setup includes incorporating
identity of the client into the web site,
and making all relevant links
appropriate.
Monthly fee includes Software
Licensing, Internet hosting, updates
and upgrades to the Exchange, and
one hour of monthly technical
support. These are performed on an
ongoing basis, and client's are
notified in advance of the updates
being applied.
$75/Month Provides the ability for the Client to
share listings from surrounding
communities.
2,500 This consulting package provides for
a thorough review of all marketing
strategies available and the
implementation of a plan of action
moving forward. This includes:
- Local Internet Marketing
- Marketing to the Construction and
Demolition
- Marketing to the community
- Marketing to the business and
service organizations
- Establishing contests throughout
the year
From these efforts ReUseMAX will
provide you with a plan and costs
associated with it for proper
implementation.
Dynamic Content
Dynamic
ReUseMAX provides a wide range
Includes the functionality for
of web site design services to
upgrade the basic look & feel of your
Design
MAX site.
Design - Included
Client provides logo, color palette, 5
Standard
graphics, and links from their site to
Listing
the Exchange.
New Web $2,500-
ReUseMAX will provide the client
Design with 7,500
with Project Management and
Supporting
Design services to create a separate
Graphics
look and feel from the standard MAX
site.
Membership
This can include a new look and feel
Provides an area for a member to
or matching with an existing web
site.
Range based on:
the information that will be displayed
- Level of design
- Compliance with state & local web
standards
Dynamic Content
Dynamic
Included
Includes the functionality for
Home Page
adminstrator to post, edit and delete
Functionality
all content categories listed here.
Exchange
Included
Provides the core functionality that
Listing
allows members to post listings and
Functionality
for visitors to the site to browse the
listings as well as the process of
exchanging a listing.
Membership
Included
Provides an area for a member to
Functionality
add or modify their information and
the information that will be displayed
when contact information is
exchanged.
Materials
Included
This functionality allows for a
Alert
member to list keywords of items
Functionality
that are listed. When an item is
listed that has the listed keyword, the
RVPUBWG5�544364
061
member is notified in the manner
requested.
FAQ
Included
Frequently Asked Questions (FAQ)
Functionality
are pre -populated and modifed by
Functionality
administrator. These provide
Link -Back
Included
standard questions and answers
Navigation
regarding the proper use of the site.
Special
Included
This functionality provides a means
Events
1,000
for the administrator of the site to
Functionality
post information on upcoming
Functionality
events.
Resources
Included
This functionality provides an area
Functionality
that the client can post information
Functionality
and links about available resources.
Survey
2,000
This might include City and County
Functionality
information as well as waste
Catalog
5,000
management firms, etc.
Newsletter
Included
Provides an area for you to post
Functionality
newsletters
Press
Included
Provides and area to post press
Release
releases
Functionality
Testimonial
Included
Provides an area to post
Functionality
testimonials from users of the
Exchange.
Marketing
Functionality
Visitor
Included
Automatic request to complete
Reminder
exchange
Functionality
Link -Back
Included
Navigation
Bar
Relationship
1,000
Building
Functionality
Refer a
Included
Friend
Functionality
Survey
2,000
Custom Survey for Exchange
Functionality
Visitors and Registered Users
Catalog
5,000
Provides the ability to generate a
Generation
catalog in PDF format that can be
Functionality
emailed or printed. The catalog is
- Primary
based on items currently being
Seat
displayed in the system
Administrative
Interface
RVPUBWGSl544364
062
Dynamic Included
Content
Management
Moderator Included
Functions
Reporting Included
Functionality
Direct Email 2000
Functionality
Web Site
Marketing
Local Web
Site
Marketing
Online
Search
Optimization
Plus
Online
Search
Optimization
Plus
Online
Yahoo
Directory
Submission
Support
Training Per
day of In-
house
training
Telephone
Support -
Hourly
Telephone
Support - 2
Hours per
month
Telephone
Support - 5
Hours per
month
Moderation
Support
RVPUBINGS1544364
125 per $125/Hour
hour
775
675 $29.95/Month
675
$1,000/Day
+Expenses
$125/Hour
$400 plus three hours of project
management
$300 plus three hours of project
management
$300 plus three hours of project
management
$200/Month Prepaid
$400/Month Prepaid
$125/Hour
063
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES^�
DATE: NOVEMBER 22, 2004 v P
SUBJECT: UPDATE ON TELECOMMUNICATIONS RESEARCH AND APPROVAL OF NON-
DISCLOSURE AGREEMENT WITH ACCESS BROADBAND
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council:
1. Consider and provide comments on this telecommunication update report;
2. Terminate -non -disclosure agreement with Aiirmesh Wireless, Inc.;
3. Authorize continued dialogue with Wireless Facilities, Inc.; and
4. Authorize staff to execute non -disclosure agreement with Access Broadband
BACKGROUND
In November 2003, the Utility Board requested an update after one year on technologies that
the Utilities might use to provide a telecom service offering, such as Internet service.
The attached report and timeline provide a general overview of what staff has done this last
year in regard to exploring telecom opportunities. As a refresher, the report provides a brief
background on a couple past studies conducted by the Utilities Department, and then
provides information regarding wireless and Broadband Over Powerline technology.
Generally, staff has identified two companies that may hold some interest to the Utility
Board --Wireless Facilities, Inc. and Access Broadband. Ongoing dialogue and information
exchange is recommended with these two companies to flush out what opportunities and
public benefits they may be able to provide to the residents and businesses of Azusa.
FISCAL IMPACT
There is no fiscal impact of executing non -disclosure agreement with Access Broadband.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Federico Langit, Sr. Electrical Engineer
AM.
TELECOM UPDATE REPORT
AZUSA LIGHT & WATER
November 22, 2004
Past Studies
In 2002, the Utilities Department conducted a detailed and comprehensive study on offering
various telecom services via a fiber and hybrid fiber coaxial (HFC) network. The cost of such a
network was believed to be too expensive given the market for telecom services in Azusa. In
2003, it was believed that the lower cost of a wireless network may be a viable alternative to
a fiber network, and so, a study was conducted on this and the consultant recommended that
the City move forward with a deployment of a citywide Wi Fi network.
Wireless or Wi Fi
In November 2003, staff was divided on the consultant recommendation and it was decided
to wait one year to see how the technology evolved. In early 2004, Azusa learned that the
City of Cerritos was moving forward with a Wi Fi deployment with a company named Aiirmesh
Wireless. Staff was urged to inquire further into what was happening in the City of Cerritos
and this lead to execution of a non -disclosure agreement with Aiirmesh in February 2004.
While Azusa learned some things during a couple meeting with Aiirmesh, key staff left
Aiirmesh shortly following execution of the non -disclosure agreement and we have not had
any productive outcomes with Aiirmesh. Utilities staff, therefore, recommends that the non-
disclosure agreement with Aiirmesh be formally terminated.
From Cerritos, we learned that Aiirmesh constructed what is referred to as a "meshed wireless
network" using pole mounted wireless routers designed and engineered by Tropos Networks,
a company located in Sunnyvale, California. The wireless routers are visible throughout
Cerritos and are relatively new and were not considered by our consultant, RW Beck, when
Beck completed its wireless study for the City of Azusa in 2003.
Azusa contacted Tropos Networks to learn more about the capability of these devices.
Generally, they function much like a cellular telephone system and can deliver a highspeed
secure internet connection to mobile users, such as police cars. That is, signals can be
passed off from one device to another as a vehicle travels through the city. Also, the devices
will route signals to different devices if one path is obstructed. This routing capability over
redundant paths improves system reliability.
Generally, the following applications appear possible with this type of network:
• Highspeed Internet service to residents, businesses and City employees
• Temporary, 1 -hour or 24-hour internet service to visitors in Azusa
• Voice over Internet Protocol (VolP) phone service
• Wireless Local Area Networking for City facilities
• Mobile internet for police and field workers
• Voice communication capabilities
• Video surveillance from remote areas of the city
• Automated meter reading
-1-
Based on preliminary information, it appears that a citywide network could be constructed in
four to six months at a cost well below $2 million. To obtain this cost figure, Tropos
Networks put the City of Azusa into contact with a company named Wireless Facilities,
Incorporated, which appears to be a highly qualified "integrator" based in San Diego. In this
industry, "integrators" work with various vendors to utilize various types of equipment to
design, engineer, construct and manage networks.
What is significant in terms of the Tropos routers is that they could cost much less than what
was previously estimated to be the cost of a network by RW Beck using different equipment.
Broadband Over Powerlines (BPL)
Another technology which the Utilities Department has been monitoring this last year is
Broadband Over Powerline (BPL). There are several equipment vendors that emerged in this
area over the past couple years (see attachment). BPL is generally considered to be the third
"pipe" of internet service to the home (the first being telephone and cable coax, and the
second being wireless). The Federal Communications Commission (FCC) is encouraging
electric utilities to offer BPL services in order to further price competition amongst service
providers.
One of the more viable BPL equipment vendors seems to be Current Technologies, which is
based in Maryland. Current appears to have overcome a number of issues with BPL, including
(1) passing signals through or around transformers; (2) eliminating interference with Ham
radio operators; and (3) providing quality of service transmission such that signals like voice
can be prioritized over data signals. Current has teamed up with Cinergy (a major investor
owned utility serving Ohio, Kentucky, and Indiana) to form a joint venture called Access
Broadband. The backing of this joint venture by these companies gives it credibility.
Access Broadband's main focus is to promote BPL deployments amongst municipal utilities
throughout the United States. Azusa was invited to Cincinnati by Access Broadband in
October 2004 to learn more about BPL. Staff attended a one day event and saw first-hand
how Current's equipment is installed and how well it worked in a demonstration house. Staff
witnessed internet speed tests in the demo house of about 5 Mbps, and made a phone call
over the internet while downloading and watching a movie via the same connection.
BPL appears to be a viable technology and Current and Cinergy appear to have laid the
groundwork for wide scale deployments. Some of the features possible through BPL that are
not found in the wireless option, include electric system monitoring and power outage
detection. Another benefit is that once a home is activated, its electric circuits and power
outlets can be used for internet access and local area networking.
While Azusa staff was able to gather information on how BPL works and was able to
determine that Access Broadband could act as an integrator, we did not get information on
costs. In order to gather such information and be in a position to compare BPL to the cost of
a wireless network, it is recommended that a non -disclosure agreement be enter into with
Access Broadband.
-2-
MW
Business Models
If Azusa was to pursue either a wireless or BPL deployment, a business model would have to
be chosen. It is clear to staff that there are various, models to pick from. Following include
some of the options:
Exclusive Retail Operation -- In this scenario Azusa Light & Water would own and
operate a retail ISP utilizing either wireless or BPL network on an exclusive basis.
Azusa Light & Water would compete with DSL, cable modem and data lines (e.g. Tl)
providers as well as cellular carriers offering mobile data service. This model would
likely require involvement by our own IT Department.
Open Wholesale Network -- In this model Azusa Light & Water would offer the
network to retail service providers on a wholesale basis. Azusa Light & Water could
put in place co -marketing agreements to capitalize on Azusa Light & Water's existing
customer relationships. In this model it may be possible to either bring in a primary
retail partner or private investor that would provide capital for the network and thus
mitigate Azusa's risk. Financial advisors would work with Azusa Light 8_ Water to
determine the best risk/return structure in light of obtainable return on investment.
Joint Venture with Viable Partner—In this model Azusa Light & Water would select a
viable partner such as WFI or Access Broadband, and establish appropriate roles and
responsibilities for each party through a joint venture agreement. Azusa Light &
Water's role would most certainly be that of marketing services and possibly
installation/maintenance of infrastructure, and our partner's role would be that of
network engineer and administrator, for example. This model would minimize the
need for IT Department involvement.
One of the main advantages of pursuing one of these network deployments, either wireless or
BPL, would be that of aggregating services onto one network. By doing this, the City would
increase the economies of scale, and theoretically lower the cost of any one system, such as
automated meter reading, or local area networking, or internet service to mobile units.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Federico Langit, Sr. Electrical Engineer
Attachments:
I
&7—A
TelecornTirreline.doc
BPLVendor
Descriptions. pdf
-3-
067
Azusa Telecom Timeline
3/4/2002 Issued RFP for Telecom Feasibility Study focused on Fiber and HFC
7/22/2002 Executed Agreement with RW Beck to conduct Study
10/28/2002 Market Research Survey Concluded*
4/28/2003 "Study Completed with Recommendation not to move forward with
fiber/HFC network deployment and Presented to Utility Board
6/25/2003 Utility Board Approved proposal by RW Beck to conduct study of Wi Fi
internet service offering
9/29/2003 Study Completed on Wi Fi and consultant recommendation was to
implement as soon as possible*
11/24/2003 Wi Fi study results presented to Utility Board with staff recommendation
to wait for 1 year and then revisit whether to implement service
12/16/2003 Rick Cole suggests that we contact Cerritos to see how they constructed
Wi Fi network
2/23/2004 Utility Board approves a NDA with Aiirmesh Wireless, the company
which constructed a Wi Fi Network in Cerritos
4/1/2004 Financial Analysis of Wi Fi presented to Joe of partnership with Aiirmesh
5/2004 Key staff at Aiirmesh Wireless leave the company and Azusa learns that
Aiirmesh will not be able to work with Azusa, at least in near term
6/2004 Azusa staff inquire about technology used to develop Cerritos Wi Fi
Network, and make contact with Tropos Networks
8/24/2004 Azusa staff meet with Tropos Networks and learn more about Wi Fi
configuration and service, and learns that Pronto Networks provides user
authentication services
9/7/2004 Azusa staff have web ex demo with Pronto Networks to understand their
product and services
9/8/2004 Azusa staff receive a proposal for a demo project from Pronto Networks
and discuss demo concept with Tropos Networks
9/9/2004 Azusa staff meet again with Tropos Networks to discuss idea of a pilot
Wi Fi service offering using Tropos Wireless Routers and Pronto user
authentication software
9/13/2004 Director of Utilities interest in full cost of deployment, not pilot. Tropos
requested to provide Azusa with full cost of buildout 068
9/30/2004 Tropos requests that Wireless Facilities, Inc. (WFI) provide Azusa
with buildout cost estimate*
10/18/2004 WFl provides Azusa with proposal to build wireless network citywide
10/28/2004 Utility Staff meet with Access Broadband (AB) to learn about
Broadband Over Powerline (BPL) technology, and learn that AB wants
to enter into NDA*
11/8/2004 Utility Staff meet with IT Interim Director on bigger picture of
network serving multiple needs, AMR, etc.*
11/8/2004 Disposition of Broadband Investigations: Will prepare update report
to Utility Board for Meeting on 11/22/2004 recommending: (1)
termination of NDA with Aiirmesh Wireless; (2) execution of NDA with
Access Broadband; (3) Ongoing consideration of WFI's proposal; and (4)
ongoing dialogue with IT Dept staff.
)M,
Telecom Services: Wireline
James D. Breen, Jr., CFA
617.488.4107
jbreen@tweisel.com
Ned P. Zachar, CFA
212.271.3838
nzachar@tweisel.com
Colby Synesael
212.271.3764
csynesael@tweisel.com
Sophia C. Hardy
212.271.3799
shardy@tweisel,com
Ratings System
Sector Ratings
OW Overweight
MW Market Weight
UW Underweight
Stock Ratings
O Outperform
P Peer Perform
U Underperform
x' S Suspended Rating
NR Not Rated
NC Not Covered
11
BROADBAND OVER POWER LINES:
FINALLY... AFTER ALL THOSE YEARS
A NEW ENTRANT INTO HIGH SPEED DATA
Executive Summary
• After years of discussion, the commercial use of electric power infrastructure to
transmit data signals is coming to fruition. Broadband over power line (BPL) is the
delivery of high-speed data signals over existing power lines. BPL is a last -mile
solution that uses medium and low voltage lines to reach offices and residences.
• BPL brings a third method of delivery into the competitive high-speed data arena.
While so far limited in nature, current offerings appear to be competitive with cable
modem and DSL on both speed and price.
• The primary advantage of BPL is that the last mile infrastructure is already in place.
Power lines pass within 100 meters of almost every home or building in the U.S. This
makes BPL an attractive option for rural areas that may not have cable or DSL
service.
• The biggest potential hurdle for BPL appears to be interference. Ham radio operators
have claimed that BPL makes it difficult to impossible to operate their devices.
Recently, however, this issue has subsided somewhat, as the FCC has endorsed BPL
and is establishing testing requirements for the equipment.
• Regulatory issues also remain. Unanswered questions such as "How will BPL gain
access to power lines?' and "What type of profit will utility companies make from
this service?" are in the process of being addressed.
• Active companies in the BPL space include Amperion, Ambient, Current
Technologies, Mainmet, PowerWAN, and Telkonet Each company provides a
different twist to solving a similar problem.
• While it is still early, we believe that BPL technology has reached a point in its
evolution where investors should begin to consider that BPL could be a formidable
competitor in the broadband market. While we do not think the RBOCs and cable
MSOs should be concerned, near term, about losing market share, there is the
potential, in our view, that this technology could be disruptive within the broadband
access market in the not too distant future.
=Pleace refet to the end of this ietioit fora hst'of irnpo'cfant'disclosures.]
N
INTRODUCTION
There is a new and potentially formidable competitor in the broadband delivery arena. The
FCC has labeled the technology broadband over power line (BPL). Cable and telephone
companies have long dominated broadband delivery, with satellite companies making a
largely unsuccessful attempt. In the case of both cable and telephone, massive networks were
put in place before there was widescale availability. This is not the case with the latest entrant
to the market. Electric utility companies are looking to get into the broadband market ---only,
this time, they will be using their own power lines to deliver high-speed data.
Based on our discussion with various companies, about one-third of electric utility companies
are considering or already using BPL. It is estimated that as many as 15 electric utilities are
testing BPL The U.S. is slightly behind the curve in BPL, as commercial deployments of BPL
have already occurred in Europe, in countries such as Germany, Sweden and Poland.
Although many utilities are testing or considering BPL, a significant number of them are
interested in the technology for in-house purposes only, such as monitoring the power grid or
reading meters remotely. Power utilities still rely heavily on phone calls from residential and
commercial customers to find out when the electricity is out
TECHNOLOGY OVERVIEW
Although BPL technology has been around for many years, only recently has the
technology been commercially viable from a performance and cost standpoint.
BPL technology is similar in many respects to the transport of data over the twisted
copper pair (DSL) and over coax (cable modems). Electricity is transmitted over power
lines at low frequencies, 50 to 60Hz, whereas data signals are above 1MHz. In particular,
BPL transmission is in the 1 to 30MHz bandwidth. This allows both signals to coexist in
the same wire. Data signals are transferred from fiber optic or copper networks into
medium -voltage power lines. All of the current BPL technologies are last -mile solutions,
essentially using power lines to bridge the gap between a fiber-optic network and a house
or building. Because of the difficulty with sending signals over high-voltage power lines,
there are not currently any viable long-haul solutions for BPL.
The FCC has categorized BPL into two areas: Access and In -House. Access BPL is
getting the signal from the backbone to a building and would be considered medium
haul. In -House BPL refers to a network that is within a building.
Access BPL
There are several technologies available for Access BPL, but the initial transport over
power lines is essentially the same. Since power lines were not designed with data transfer
in mind, the signals deteriorate over long distances and, therefore, amplifiers must be
placed on the power lines at regular intervals to boost the signal. These amplifiers must
be located about every mile to ensure a stable signal. Unfortunately, when a signal
reaches a transformer to be reduced from medium (4,000 — 13,000 volts) to low voltage
(110 — 220 volts) before entering a home or building, only low frequency signals can pass.
James D. Breen, Jr., CFA 617.488.4107 2
Thomas Weisel Parmers LLC
071
The Architecture of Access BPL
High Voltage
Welts
Power
Generation
Plant
Intemet
ti
Substation
Source: FCC Office of Engineering and Technology
Medium Voltage
- 1kVolts to 40 kVolts
Low Voltage
- 1201240 Volts
r LV
* Distribution
► R Transformer
Coupler Coupler
.11.
Backhaul Power Line
Point
Interface Device
_ _ — — _ _ _ — _ _ Located In Home
Access BPL See In -House
BPL
Provisioning of
A99Pontion ACCESS BPL
Several solutions have been developed to circumvent this problem. These solutions are
based on either avoiding the transformer or fording a way through it. One solution fits in
very well with the current trend in broadband: wireless transport. Before the data signal
reaches a transformer it is routed to a wireless transmitter (similar to WIFT), then to
nearby access points, thus eliminating any signal disruption. Users can then get
broadband access through their desktop or laptop computer using a wireless network
card.
Another method for avoiding transformers is simply to bypass them. Using a bypass wire
known as a bridge, the data signal is directed around the transformer and into a home or
building using a low voltage power line. The standard electrical wiring in a home or
building becomes a computer network. A user accesses the network through any
electrical outlet by using a power line modem. This special modem converts the analog
power line signal into a digital signal that a computer can use to send and receive data.
The final method is to send the signal through the transformer in a way that does not distort
it. Signals are sliced into smaller packets, sent through the transformer, and then
reassembled. Even if some data is lost in the process, computers can still interpret the signal.
Access to the network at the home/building level is again through a power line modem.
James D. Breen, Jr., CFA 617.488.4107 3
Thomas Weisel Partners LLC
072
Several business models have emerged for Access BPL providers. One possibility is for
utilities to lease access to their power lines to a provider. Using this model, utilities do
not have to worry about buying new equipment, customer service or marketing. Instead,
they would collect a regular fee for the use of their power lines to transport data.
Another possibility is for a utility to install the new equipment and establish service but
leave the consumer side of things to an established ISP such as Earthlink or AOL.
Finally, a utility could take on the entire business itself, from installing the equipment to
marketing the service. This might be the most lucrative (and hence risky) method for a
utility, but it is also an area with which they have the least familiarity.
In -House BPL
In -House BPL focuses on using a building's existing electrical wire as a local area
network (LAN). By simply plugging a modem into an electrical oudet, a user can
communicate with other computers and printers on the same network within the
building without any new wiring. Since nearly every room in a house or building has an
electrical outlet, this allows for a very extensive and flexible network. Current
technologies support speeds up to 14 Mbps, but theoretically should be able to surpass
10OMbps. Cost reductions, particularly in semiconductor chips, has allowed prices for
power line modems to become affordable at $40—$60.
The Architecture of In -House BPL
In -House
USB or
Ethernet
Port
7pse
and .tion overtric Wiring
11SB or . .
'Ethernet
Port
After Networking with BPL
Source: FCC Office of Engineering and Technology
James D. Breen, Jr., CFA 617.488.4107 4
Thomas Weisel Partners LLC
073
ADVANTAGES
One of the major advantages of BPL is that the basic infrastructure is already in place.
This allows the utility companies to roll out the service faster and reduces the amount of
capital expenditures required. The FCC -created National Exchange Carrier Association
estimated that it would cost $10.9 billion to wire all of rural America for broadband, and
the use of BPL could help to reduce that expense. Penetration of power lines to homes
and businesses of potential users is very near 100%.
BPL service is a potentially attractive and cost-effective way to reach rural customers that
do not have access to cable or DSL. Estimates are $100-$200 (depending on technology)
per house/building passed to upgrade power lines and provide BPL access. This allows
the service to be offered to the consumer at lower prices than DSL or cables. Preliminary
estimates are in the $20-$40 range. This attractive price point could influence customers
that already have cable or DSL to switch to BPL and should make the service an easy
decision for rural customers. BPL technology has the capability to deliver speeds up to
54Mbps, but current testing delivers reliable signals in the 2 to SMbps range.
From the government's point of view, BPL increases national security. Wide scale BPL
would provide another layer of redundancy for communications systems and allow more
careful monitoring of the power grid.
Overall the implementation of BPL could offer both consumers and ISPs a third
broadband access solution.
DISADVANTAGES
BPL is not without its problems. One of the biggest issues is potential interference with
other electronic equipment. Power lines were designed to carry electricity and not data.
Therefore, signals transmitted across power lines could leak out and cause interference.
Conducted energy can cause harmful interference to radio communications by two
methods. The first is radio frequency (RF) energy may be carried through electrical
wiring to other devices also connected to the electtical wiring. This poses a problem with
In -House BLP. Other devices plugged into the electrical wiring could pick-up
interference from the network. Second, at frequencies below 30 MHz, where
wavelengths exceed 30 feet, long stretches of electrical wiring can act as an antenna,
permitting the RF energy to be radiated over'the airwaves. As a result of low propagation
loss at these higher frequencies, the radiated energy can cause interference to other
services even at large distances. Interference of this type would be associated with
medium -haul and long-haul BPL. An early version of long-haul BPL by Nortel Networks
and United Utilities in England failed as a result of interference. Lampposts in the area
happened to be the perfect size to act as antennae and broadcast the data signals as radio
waves. These radio waves interfered with the BBC World Service. Solving this problem
became cost prohibitive and the project was shut down soon after.
New technologies use orthogonal frequency -division multiplexing (OFDM), a technology
similar to that used in DSL. This creates a low power signal by spreading the signal over
a very wide bandwidth. Using OFDM substantially reduces the chance of producing
James D. Breen, Jr., CFA 617.488.4107 5
Thomas Weisel Partners LLC
074
interference. Despite this, amateur radio operators have railed against wide spread BPL
deployment citing interference with their instruments. The FCC has taken these issues
into account and has found no strong evidence in support of the ham radio operators
and thus supports BPL initiatives. In addition, most new BPL equipment has the ability
to notch out frequencies that may conflict with nearby devices.
Some experts estimate that broadband access has 80% — 90% penetration in the U.S.
across all technologies. If this is the case, the rural market for BPL might not be as large
as expected. Utilities and their partners would potentially have to go after current
broadband users to create a profitable business model. This would be no easy task given
the bundling strategies of cable and telephone companies. Bundling has made customers
extremely sticky and many people may not see the advantage of switching unless there is
a significant price difference. If BPL companies have to compete on price alone, this may
not be a profitable venture.
REGULATORY ISSUES -
The Telecom Act directs state utility commissions to share in the responsibility of
making broadband service available nationwide. At the same time, state laws give
regulators sole jurisdiction over electric companies providing service in their state.
Utilities are generally regulated monopolies and subject to the examination of state
regulators. The issue becomes whether state commissions will share the FCC's vision to
bring competition to the broadband market and use their jurisdiction to adopt the types
of Hiles that will encourage investment in and deployment of BPL technology. Utility
companies need to know whether state commissions will permit electric companies to
use their current power networks to provide broadband service. Some utilities worry
about whether the rules establishing their power lines' rights-of-way, many of which were
written 80 years ago, will allow for BPL. Even if states decide to permit the use of electric
networks for broadband, such decisions may only come after long proceedings, which
impose great costs on companies and can take years to decide.
State utility commissions also will be able to decide the cost structure for how electric
companies will recover any investment for a BPL network upgrade and how to treat the
profits from BPL. One scenario could be that state commissions could require electric
companies to offset their electricity earnings with their BPL earnings so as to stay within
a set rate of return. Another issue is whether electric companies should make competitive
profits for selling BPL service because they are going up against cable and DSL
broadband providers.
It remains to be seen whether the FCC will work to ensure that broadband regulations
are evenly applied across different access technologies (DSL, Cable Modem, BPL, etc.)
James D. Breen, Jr., CFA 617.488.4107 6
Thomas Weisel Partners LLC
075
James D. Breen, Jr., CFA 617.488.4107
Thomas Weisel Partners LLC
SELECT COMPANIES IN THE BPL SECTOR
Ambient
Ambient Company (ABTG.OB) is headquartered in Newton, Massachusetts.
Consolidated Edison, an electric utility company, owns 45.8% of Ambient. Ambient is
partnering with Southern Company and Consolidated Edison to deploy its BPL
equipment across their power lines for testing and eventual full-scale rollout. The
technology focuses on both low and medium voltage power grids. Ambient's equipment
allows a broadband data signal to go around disruptive transformers using a bypass
coupler. These passive bypass couplers are designed to clamp around the primary and
secondary lines, in overhead, underground and in -building environments. The couplers
were designed with low cost, ease of installation, safety, and speed in mind. Transmission
speeds can exceed 10 Mbps. The company's product line includes the S -node
(substation), X -node (by passes transformer), R -node (repeater), GW -node (home
connection), and U -node (lower cost gateway). Power line modems finish the network by
providing in-house access to broadband at every electrical outlet.
Amperion
Amperion is a privately held Andover, Massachusetts based company founded in 2001.
The company is financially backed by Cisco, American Electric Power, and Redleaf
Group (venture capital). Amperion is primarily focused on wireless (Wi-Fi) for
deployment of BPL to homes and businesses. Instead of bypassing transformers to get
into homes and buildings, broadband signals are delivered wirelessly prior to reaching
disruptive transformers. The company markets three pieces of equipment. Falcon, for
overhead wire; Griffin for overhead pole; and Lynx for underground. The equipment
gives Wi-Fi ranges of 300 to 750 feet, which is more than adequate as power lines pass
within 100 meters of almost all homes and buildings. All of Amperion's products are
FCC Part B compliant. Trials are currently deployed in Ohio, Pennsylvania, North
Carolina, Alabama, Idaho, New York, and Ontario (Canada). The technology should be
very attractive to consumers and businesses as it is based on the widely used 802.11 Wi-
Fi standard. Extremely high speeds of 24 Mbps are possible, but right now are limited by
Wi-Fi standards. Prices for the service should be reasonable as Amperion's solution has a
low cost per household passed. An additional advantage is that as the data signal passes
over medium voltage power lines, it is repeated and not amplified, resulting in lower
loss/distortion.
Current Technologies
Current Technologies is a privately held Germantown, Maryland-based company
founded in 2000. Current is financially backed by Liberty Associated Partners
(investment fund), EnerTech Capital (venture capital) and Cinergy (electric utility).
Current recently announced a wide -scale rollout of residential BPL service in partnership
with Cinergy in Ohio, Indiana, and Kentucky. The service will be available to 1.5 million
7
076
of Cinergy's customers. Pepco is also running a trial using Current's equipment in
Maryland. Current's product line includes CT View (network management software), CT
Backhaul -point (Internet interface), CT Coupler (Backhaul -point to power line interface),
CT Bridge (medium to low voltage power line interface). The technology uses a bridge to
bypass transformers and solve the disruption problem. At the home/building level, a
HomePlug certified power line modem is all that is required for BPL distribution. This
allows a building's wire to double as a network that is accessible from any electric outlet.
Main.net
Main.net is a U.S. subsidiary of Main.net Communications, Ltd. an Israeli -based power
line communications company. The subsidiary is based in Reston, Virginia. The
company's technology uses software to pass and decode data signals through power line
transformers. Power line modems are used to receive the signal within a home/office.
Main.net is currently partnering with utilities PPL, Ameren, and Southern Company.
Main.net markets its products under the Power Line Ultimate System (Plus) name. There
are four components to the system: NmPlus, RpPlus, CuPlus, and NtPlus, and network
management software known as NmPlus controls the system. The RpPlus component is
a repeater that strengthens data signals over long distances. The CuPlus is the
distribution point that routes signals to individual houses. Termination at the user level is
provided by the NtPlus and allows for a broadband connection through an electric
outlet. Speeds of up to 2.5 Mbps are achievable at the user level.
PowerWAN is a privately held Palo Alto, California-based company founded in 2000.
Backed by Anila Investment, LLC, an early stage venture capital firm. PowerWAN
currently has a large-scale deployment in Hong Kong making it one of the earliest
entrants to the BPL market. The company's technology is based on PowerWAN Hybrid
Fiber Power Line Carrier architecture. PowerWAN's system is known as the Power Line
Modem Termination System. Three components comprise the system: Power Node
(optical fiber to power line interface), Powerline Gateway (customer to power line
interface), and Customer Premise Device (customer interface). The technology uses
power line modems to provide user connection to broadband. A cost of $100 — $150 per
home passed is required to deploy the equipment. Technology allows for very high
speeds of 6-8 Mbps at the user level.
Telkonet
Telkonet: Company (TKO:AMER) was founded in 1999 and is based in Annapolis,
Maryland. Telkonet focuses on commercial In -House BPL and not delivery through
electric utility power lines. TelkonePs technology essentially transforms a building's
electrical wiring to a local area network, which eliminates the need to retrofit a building
for broadband service and does not cause any disruption to the building's electrical
system. Installations are typically in hotels, apartment buildings or office buildings. The
technology offers connection speeds of 4-5 Mbps at the user level. Using a hub and
James D. Breen,]r., CFA 617.488.4107 8
Thomas Weisel Partners LLC
077
spoke design, it distributes an encrypted data signal over existing electrical wiring in a
building. Three primary devices are used in an installation: Gateway, Coupler, and
iBridge. First, the Gateway receives data from an Internet connection. Then Coupler
injects the data signal into a building's circuit breaker panel. Finally, the iBridge makes
any electrical outlet within the installation a network connection. Equipment is not for
purchase, but instead a monthly fee is charged per bridge. Telkonet is an endorsed
vendor to Choice Hotels and has installations in their facilities in addition to apartment
complexes and office buildings.
HornePlug
HomePlug is an industry standard for power line modems and other similar devices. The
Alliance's mission is "to enable and promote rapid availability, adoption and
implementation of cost effective, interoperable and standards-based home powerlme
networks and products." Founding members of the HomePlug Powerline Alliance are
Cogency, Comcast, Conextant, DS2, EarthLink, Enikia, Intellon, Panasonic, RadioShack,
and Sharp. Manufacturers of HomePlug-certified devices include Linksys, NETGEAR,
Samsung, Siemens, and Telkonet. HomePlug devices provide throughput up to 14 Mbps.
James D. Breen, Jr., CFA 617.488.4107 9
Thomas -Weisel Partners LLC
MW
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: , NOVEMBER 22, 2004 V�
SUBJECT: APPROVAL TO REQUEST PROPOSALS FOR A METER STRATEGY
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve solicitation of proposals
for a comprehensive meter strategy study with recommendations.
:7: OX41Lii110%
Azusa Light R Water created a Meter Strategy Team three years ago with members from the
Electric Division, Water Division, and Customer Service. The group met periodically to discuss
their metering needs, constraints, alternatives, and costs in an effort to arrive at long and
short-term meter strategies. Since electric Automated Meter Reading (AMR) technology has
been available for awhile, the team decided to install residential electric AMR meters on new
residential construction and to replace hard -to -read meters that have access problems.
Twelve hundred electric AMR meters have been installed to date. Water AMR meters that can
be read with the same meter reading handhelds as electric meters are newer so we are just
now testing this technology.
Arriving at a long-term AMR strategy, however, has been complicated by fast -changing
technology which is difficult for our existing staff to Keep up with. To further evaluate current
and evolving technologies, ,conduct cost -benefit analyses, and recommend options most
viable for Azusa Light & Water, it is important that we get some outside professional
assistance. With the upcoming development of the Monrovia Nursery property, time is now
of the essence to have a comprehensive meter strategy developed for both electric and
water. Many municipal utilities have used consultants to provide this independent evaluation
and to get recommendations. Azusa Light & Water requests that a suitable consultant be
retained through a Request For,Proposals process.
FISCAL IMPACT
Once proposals are received, costs will be reported to the Utility Board.
Prepared by: Karen Vanca, Assistant Director Customer Care & Solutions
079
fe
AZUSA
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESO��
DATE: NOVEMBER 22, 2004 �Y
SUBJECT: AUTHORIZATION TO CONDUCT A JOINT FEASIBILITY STUDY FOR POWER
GENERATION PROJECT LOCATED IIS THE CITY OF COLTON
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council authorize staff to participate in a
joint feasibility study to upgrade an existing power plant located in the City of Colton (Colton;
and reimburse Colton at a cost not -to -exceed $22,500.
BACKGROUND
Recently, Colton Electric Utility invited the City of Azusa to jointly study the feasibility of
upgrading the existing power plant located in Colton. The existing Colton power plant is a
simple cycle natural gas fired peaking power plant that went into operation in the summer of
2003. Due to the low operational efficiency of this plant as a pealing power plant, the plant
has had low utilization in the past twelve months of about 15%.
In an attempt to improve the plant's efficiency and increase its utilization, Colton Electric
Utility intends to study the feasibility of adding a steam turbine to utilize waste heat to
generate additional electricity and improve the efficiency by 20%. The addition of the steam
turbine could add capacity of about 15 MW to the plant. It is this additional electric capacity
that Colton Electric Utility intends to find partners for joint ownership.
In view of the recent decision by the California Public Utility Commission CPUC int atte
of electric resource adequacy requiremen , i is expec a tat the City will need additional
power resources to meet the requirement. Colton's upgrade project is one of the options the
City might utilize to meet the requirement if the study finds it to be economically and e
technically viable.
A
Since the Colton peaking plant is relatively new infrastructure, it is likely that the incremental
cost to improve efficiency and add capacity will minimize the financial risks which are often
associated with developing new sources of energy. Therefore, this project is worth studying.
The feasibility study does not bind the City in any way to pursue the upgrade project. If the
City decides to pursue the upgrade project, additional contractual agreements will be
required.
Colton Electric Utility is in the process of engaging the engineering firm of CH2M HILL for the
feasibility study at a not -to -exceed cost of $45,000. Colton proposes an equal cost sharing
for the feasibility study with reimbursement from Azusa to the Colton Electric Utility.
FISCAL IMPACT
The City's share of the feasibility study is estimated not -to -exceed $22,500 if only Colton and
Azusa participate in the study. However, if the City of Banning also participates in the study
which is likely, Azusa's cost would be reduced to no more than $15,000. Funds are available
in Capacity and Energy Account to pay for the cost of the study.
Prepared by
Bob Tang, Assistant Director of Resource Management
M &�
1145ft E
AZ RS a
�. CMI Y M'RMk
AGENDA ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIESQ\K
DATE: NOVEMBER 22, 2004 ��jj��
SUBJECT: WATER RATE ADJUSTMENT FOR MILLER BREWING COMPANY
RECOMMENDATION
It is recommended that the Azusa Utility Board/City Council approve the attached resolution
increasing the water rate charged to Miller Brewing Company by 3 percent.
BACKGROUND
The Water Supply Agreement between the City of Azusa and the Miller Brewing Company
allows the City to adjust the water rate charged to Miller by up to three percent during the
first 5 years of the contract. This adjustment may be made on a unilateral basis since it is
below what is referred to in the Agreement as the Excess Rate. Miller's current contract rate
is $0.940 per CCF, so a 3 percent adjustment results in a cost increase of $0.028 per CCF, or
to a new rate of $0.968 per CCF.
Miller was notified by the City of the Utility's intent to adjust the rate on November 15, 2004,
and was invited to submit a letter of protest or attend the November 22, 2004, Utility Board
meeting. At the writing of this report, no protest letters have been received. The intent of
this adjustment is to cover operating cost increases expected during the Initial Term of the
contract, which is 5 years, from June 7, 2003 through June 7, 2008. Future rate adjustments
will need to be agreed upon by the parties, and cannot be scheduled prior to December 7,
2007.
082
FISCAL IMPACT
Based on Miller's water usage, this rate adjustment results in an annual cost increase of about
$40,000 for water, plus about $3,200 in utility users taxes. These are both considered
additional revenues to the City and Utility.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Attachment:
Ii
Miller-Reso.doc
WE
RESOLUTION NO.
A RESOLUTION OF THE UTILITY BOARD/CITY
COUNCIL OF THE CITY OF AZUSA, CALIFORNIA,
APPROVING WATER RATE ADJUSTMENT FOR
MILLER BREWING COMPANY, A WISCONSIN
CORPORATION.
WHEREAS, on February 26, 2002, the City of Azusa entered into a Water Supply
Agreement (hereinafter "Agreement") with the Miller Brewing Company to supply water to its
facility located in Irwindale, California; and
WHEREAS, on June 7, 2003, the City of Azusa began supplying water to the Miller
Brewing Company through Azusa Light & Water, the City's Utilities Department; and
WHEREAS, the eighth recital on page 6 of the Agreement establishes the City's right to
adjust rates charged to the Miller Brewing Company annually, provided, however, that rates
charged per hundred cubic feet (CCF) of water do not exceed what is referred to in the
Agreement as the "Excess Rate"; and
WHEREAS, Page 3 of the Agreement defines the "Excess Rate" as the "rate for water
that is in excess of three (3) percent (%) of the rate for a CCF for the first year of the Initial
Term..."; and
WHEREAS, the rate charged to the Miller Brewing Company for water during the first
year of the Initial Term, the "Permitted Rate," has been ninety-four cents per hundred cubic feet
of water ($0.94 per CCF); and
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Permitted Rate per hundred cubic feet of water charged to the Miller
Brewing Company is increased by three percent:
Existing Permitted Rate per CCF New Permitted Rate Per CCF
$0.940 $0.968
SECTION 2. The New Permitted Rate Per CCF shall be effective for all bills rendered
after December 1, 2004.
WE
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS 22"d day of November, 2004
Cristina C. Madrid, Mayor
ATTEST:
Vera Mendoza, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Utility Board/City
Council of the City of Azusa at a regular meeting of the Azusa Light & Water Utility Board on
the 22nd day of November, 2004.
AYES: COUNCILMEM 3ERS:
NOES: COUNCILMEM 3ERS:
ABSENT: COUNCILMEMBERS:
Vera Mendoza, City Clerk
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: NOVEMBER 22, 2004
SUBJECT: CUSTOMER INFORMATION SYSTEM UPDATE
This is a report on status of purchase and installation of new customer information system
(CIS) or utility billing system. This report is provided at the request of the Utility Board.
A written agreement between Systems & Software, Inc. and the City of Azusa Light &. Water
was negotiated and signed by both parties September 15, 2004 and project team members
were selected. During September, Systems & Software (S&S) representatives visited Azusa
for a kick-off meeting with the Azusa Light & Water's core team. S&S provided a project
overview, explained roles and responsibilities, and began meetings with our core team
members to define time -of -use billing requirements and began discussions on business
processes. S&S also requested file formats from LB.W's Information Systems Analyst for data
mapping (conversion purposes) to the S&S enQuesta CIS.
In October, an escrow account agreement was negotiated among Wells Fargo Bank, Systems
& Software and Azusa Light & Water, so the latest version of S&S enQuesta source code can
be held in a safe deposit box at the bank. Future updates will be sent by S&S to Wells Fargo
Bank and retired copies returned to Systems & Software.
In preparation for the two-week period of initial training in March, the City Interim Information
Systems Director arranged for a training facility in the Library training room. We have had
discussions with S&S regarding system administrator training and what needs to be done to
support this. The City Information Systems Department is now in the process of reviewing
specifications for the Interactive Voice Response (IVR) system. Drafts of this are going back
and forth and will be completed by December 10.
Systems & Software has also been working to collect requirements for our interfaces with
Itron, our meter reading and Time -of -Use account billing vendor; our lockbox/remittance
processing vendor; Speedpay, our credit card payment vendor; and Infosend, our bill print
vendor.
MOR
Systems &Software team members returned to Azusa the week of November 15 to further
discuss business processes, including billing, credit and collections, and cashiering. A
Business Scope document will be produced in December as a result of this effort, and will be
used by S&S and LB.W to setup the enQuesta CIS.
Prepared by: Karen Vanca, Assistant Director Customer Care & Solution
1V=
MMMMOOMMOlk
City Yard Renovation Project 1020 W. Tenth
Street
Status Report
November 2004
W -K
Project Schedule
Re -bid Opening 10/5/04
• Utility Board awards project 10/25/04
• Notify Contractor of City Council Award of project 10/26/04
• Pre -construction conference document review meeting 11/ /03/04
Three copies of signed agreement pages A11-5, completed
Faithful Performance Bond 100% of contract, turned in
Labor and Material Bond 100% of contract , turned in
Comprehensive General Liability $1,000,000, turned in
Automotive Liability $1,000,000, turned in
Workers Compensation Insurance $1,000,000, turned in
Purchase Order Request, pending
• Notice To Proceed Issued, 11/18/04
• Pre -construction kick off meeting 11/22/04, contractor, main subcontractors, city
representatives
• Construction schedule 160 days, tentative start date 11/29/04, completion date
5/9/05.
089
FA
JrL....c
Power Resources Division Monthly Report
• Status of Projects
• Power Consumption Comparison
• Wholesale Market Trend
• Power Resource Budget Update
• Preliminary FY03-04 Light Fund Operating Result
090
Status of Projects
• Solicited and evaluated the proposals far Kirkwall Substation cost auditing work
(see separate Board agenda item)
Completed the study to assess the power resource needs of the City to comply with
State's Resource Adequacy Requirement (RAR). Initiated the search for viable
power resource options to comply with the RAR (see separate Board agenda item)
• Completed annual reports to various outside agencies: (a) annual integrated
resource plan far Western Area Power Administration; (b) annual Transmission
Revenue Balancing Account Adjustment (TRBAA) filing to Federal Energy
Regulatory Commission ( "FERC") (see separate Board agenda item); and (c)
annual Energy Information Administration financial report (EIA412)
Continue to prepare the annual financial disclosure reports for SCPPA bond
financing and Kirkwall bond financing
• Continue to participate discussions in San Juan project: (a) replacement of cooling
tower; (b) streamlining of the scheduling processes with Public Services Company
of New Mexico (PNM) and Tucson Electric Power (TEP)
• Actively participating in the California Independent System Operator's (CAISO)
tariff amendment #60 settlement discussions. The amendment #60 if left
unchallenged, would increase CAISO costs to the City by at least $250,000 a year
prospective of July 2004
• Partipated in the discussion and formulation of the strategy to upgrade and expand
City's infrastructure to serve future customers
• Continue to participate in the SCPPA's evaluation of a geothermal energy
proposal, which may be a source of additional renewable energy for the City
091
'
CfTYDF AZUSAENERGV CONSuMPT10NCOMPA9ISON
�F FGY OONSU MN IN MH _ _
PE EhR_
.A
FY 04-05
CFYJJGE
JI.L
26150
_.._
.........
25,58
7 _
333 P11C
28714
...
25.342
....
...... .. .
25,213
3153%
21561 _ _ .'
7692h
NOV
...._.. ._DEC
... p2G7
..___.
..
... _...
.i
! FEB
16875
t
MAF1
21,338
! PPR
20417
TOTPL
265A718
X874
270'/e
CITY OF AAA PEAK DEMAND COMPAPoSON
'EAK DEMAND N MW ...... .. _ ( _ - .... ....
Surpassing all-time high for peak of 58.1 MW established on September 1 1998.
092
Azausa
VHOLESALE ELECTRICITY SPOT MARKET PRICES IN CALIFORM,
- _---- - AVERAGE ...v AVERAGE
_..
4LL PRICES IN $/MM
093
SAN 64"
FEB_ 04
$42 75.._ _
_... $36.66 .
_.
$31.65
- .APR 04
MAY 04.
$51.26
.......
JUN04..__
....
$50.76
I_.. $32.32
_
JUL04 1
._
$ss_7z
_ _. -_
AUG 04__...
. ..
._ $5129
SEP 04
i
_$40.77_. -
$27.24 _.
_.
OCT04
i
$45.68
$31.14
4LL PRICES IN $/MM
093
Power Resource Cost Accounting
Fv 'nz_'na
Mdl
Legislative & Regulatory
Update
Prepared by Bob Tang
November 22, 2004
095 '
California Public Utilities Commission
(CPUC) — Resource Adequacy
Requirement (RAR)
6.
• On October 28th, the CPUC issued a decision regarding RAR with respect to
Investor Owned Utilities (IOUs)
• The decision required the IOUs not only to have sufficient power resources to
serve their retail loads but also hold 15-17% of "extra" power resources at all
times for contingency purposes (the so called "planning reserves')
• The decision accelerates the RAR compliance date from January 1, 2008 to
June 1, 2006 with final IOUs' compliance plan and procurement completed by
September 30, 2005
• Although the decision does not directly apply to municipal utilities, historically
municipal utilities have advocated such requirements and thus are expected
to voluntarily comply with the requirement
• The decision left the implementation issues to be further discussed in the
coming months
• Finally, the decision appears to suggest that location of power resources will
be of paramount importance in qualifying the resource viability toward the
requirement
Anticipated Regulatory and
Legislative Actions:
• The CPUC is expected to issue a decision regarding the exit
fegS application to municipal Greenfield customers in
December
• The state legislature is expected to revive the discussion
regarding Governor's one million solar homes initiative.
• The state legislature is expected to play a vital role in
confirming Governor's new appointees to the California
Independent System Operator (CAISO). New appointees are
all of "free market" persuasion as opposed to a more
regulated minded legislature. confirmation battles may be
expected
• The Congress may make a major push to rewrite the "Clean
Air" Act. Now with the Republican Party firmly in control of
both the House and the Senate, it is expected to push very
hard the President's "Clear Skies" initiative
097 s
Miscellaneous
Update
Prepared by Bob Tang
November 22, 2004
Resource Adequacy Requirement
(RAR)
■ On October 28th, the CPUC issued a decision regarding RAR
■ The decision requires the Investor Owned Utilities (IOUs) to have 15-17% of "extra"
power resources at all times for contingency purposes ("planning reserves")
■ IOUs to file compliance plan by September 30, 2005 to be in compliance by June 1,
2006
■ Decision does not directly apply to munis, but munis are expected to voluntarily
comply
■ Staff has completed the preliminary analysis of resource portfolio in order to comply
with RAR
■ We are short of about 7 MW in the winter months and about 15 MW in the summer
months to fully comply with RAR
■ Staff is looking into power resource options to comply with RAR: feasibility of
upgrading Colton Gen, contracting options with local generators etc....
■ Final strategic plan to be presented to the Utility Board in the 1 st quarter of 2005
Exit Fees
■ Due to the energy crisis of 2000-01, the State entered into many pricey long
term power contracts to serve Investor Owned Utilities' customers
■ Recognizing that some IOUs customers may leave the IOUs either through
direct access transactions or municipalization, the CPUC instituted the exit
fees to be charged to IOUs loads no longer served by the IOUs
■ On November 19th, CPUC issued a decision granting limited exemption of
exit fees to loads served by munis
■ One exemption grants 150 MW of new muni loads in SCE and PG&E
service territories from paying exit fees
■ Second exemption grants up to 210 MW of "transferred loads" from paying
exit fees, first priority given to Northern California munis and then the rest of
munis
■ The exemption will be granted on a first-come first-served basis
■ Staff is working closely with CMUA to get exemptions for the anticipated
loads served by the City
3
CAISO Amendment #60
■ CAISO filed amendment #60 to its Tariff in June 2004
■ The amendment purports to reallocate certain costs incurred by the CAISO
to market participants. Total costs to be reallocated amounts to close to
$300 million per year
■ The proposed reallocation will severely penalize entities serving loads in
Southern California which potentially could double costs paid by these
entities including the City
■ The Southern California Cities of Anaheim, Azusa, Banning, Colton,
Pasadena Riverside, and Vernon pay a combined cost of $8 million
currently, the CAISO proposal could potentially increase the costs paid by
southern munis to $15 million a year. The City s cost could go from
$300,000 to $600,000 per year
■ Staff is working closely with D.C. counsel and the other Cities in the
preparation of testimonies defending our positions
■ Staff anticipates some expenditure of staff time and resources in this
important case in the next six to nine months
!f
AZUSA
OMT 6 'RATEI
INFORMATIONAL ITEM
TO: HONORABLE.CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES
DATE: NOVEMBER 22, 2004
SUBJECT: CALIFORNIA MUNICIPAL UTILITIES ASSOCIATION's CAPITOL DAY
The California Municipal Utilities Association (CMUA) is holding its Annual Capitol Day Event
and Legislative Update in Sacramento, on Monday, January 10, 2005. ,
All Utility Board Members are invited to attend. You may contact Liza Cawte of our staff at
812-5171 who will be happy to make travel arrangements for you.
See attached CMUA Memorandum for more information.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Attachment
CMUA Capitol
Day. pdf
098
California Municipal Utilities Association
915 L Street Suite 1460 — Sacramento CA 95814 — 916-441-1733 — fax 916441-4053
November, 2004
TO: Legislative Committee, Heads of Utilities & Elected Officials
FROM: Lary Gardner, CMUA President
& Lauren Hamlin, Legislative Committee Chairperson
SUBJECT: CMUA's Capitol Day — Monday, January 10, 2005
Legislative Briefing, Legislative Visits & President's Reception
Legislative Briefing
CMUA's Legislative Briefing provides an opportunity for every member utility manager,
staff and local elected official to learn from key legislative staff what water and energy issues will
be considered in the first year of the two year session (2005/2006 Legislative Session). The briefing
will be held at the Hyatt Regency Sacramento (1209 L Street) beginning at 10:30 a.m. through
lunch, Monday, January 10, 2005.
Legislative Visits & Reception
Please schedule appointments to meet with your legislators and their staffs the afternoon
of January 101" and invite them to the President's Reception planned for that evening at the
Sheraton Grand Sacramento (1230 J Street) 5:00-6:30 p.m. Because of FPPC regulations, these
personal invitations cannot come from CMUA staff. Formal invitations will be mailed in
December from the President of the Association to the Legislature. Please keep CMUA informed
of who you invite to the reception Monday evening.
Agenda
Legislative Briefing, Visits and President's Reception
Monday —January 100'
10:30 -Noon Briefing with Legislative Staff on Water & Energy Issues (Hyatt)
Noon Lunch (Hyatt)
1:30-5:00 Capitol Visits
5:00-6:30 Legislative Reception (Sheraton)
Register
To register for the 2005 Legislative Briefing, Visits & President's Reception please return
the following form to CMUA with your registration fee of $90 per person (for briefing, lunch and/or
reception). You may also access this information on our web site: www.cmua.org
' a a
California Municipal Utilities Association
915 L Street Suite 1460 — Sacramento CA 95814 — 916441-1733 — fax 916-441-4053
CMUA'S CAPITOL DAY—MONDAY, JANUARY 10, 2005
LEGISLATIVE BRIEFING, LEGISLATIVE VISITS & PRESIDENT'S RECEPTION
HYATT REGENCY SACRAMENTO & SHERATON GRAND SACRAMENTO
Registration
Agenda
Legislative Briefing, Visits and President's Reception
Monday — January 10'
10:30 -Noon Briefing with Legislative Staff on Water & Energy Issues (Hyatt)
Noon Lunch (Hyatt)
1:30-5:00 Capitol Visits
5:00-6:30 Legislative Reception (Sheraton)
Please return this form with your registration fee of $90 per person (for briefing, lunch and/or
reception) to:
California Municipal Utilities Association
915 L Street Suite 1460
Sacramento CA 95814-3705
Questions: Contact Ann Linnekens or Monique Zavalza at CMUA.
(Please complete one form per individual)
Name (for badge) Title
Utility Telephone Fax
Address
Email
Please keep CMUA informed of who you invite to the Legislative Reception, 5:00-6:30 p.m. at
the Sheraton Grand Sacramento (1230 J Street).
Please let us know which events you plan to attend
(The registration fee is $90 for one or all events):
Morning Briefing
Lunch
Reception
CMUA has NOT made arrangements for sleeping rooms. If you require a sleeping room please
contact one of the hotels directly: Hyatt Regency Sacramento 916443-1234 (1209 L Street,
95814) or Sheraton Grand Sacramento 916447-1700 (1230 J Street, 95814). Transportation to
and from the airport can be arranged by contacting Super Shuttle (800-258-3826).
Registration information may also be accessed on our web site www.cmua.or
1.00
INFORMATIONAL ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM:: JOSEPH F. HSU, DIRECTOR OF UTILITIES q*,K
DATE: NOVEMBER 22, 2004 v
SUBJECT: SCPPA HOLIDAY LUNCHEON AND LEGISLATIVE BRIEFING
The Southern California Public Power Authority (SCPPA) is holding its Annual Holiday
Luncheon and Legislative Briefing this year on Thursday, December 16, 2004, at the Pasadena
Westin, following the SCPPA Board meeting. Arrival at 11:30 a.m. is suggested for those not
attending the Board meeting.
All Utility Board Members are invited to attend. You may contact Liza Cawte of our staff at
812-5171 who will be happy to RSVP on your behalf with SCPPA.
See attached invitation for more information.
Prepared by:
Cary Kalscheuer, Assistant to the Director of Utilities
Attachment
SCPPA-HolidayLunch
eon. pdf
101
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You are cordially ln�ited fto attend the annual
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Please join us for a festi holiday-;lunchi$yfollowed by br,�efrngs on10
the.Arecent federal -Ta -fid state„,elections ands their-potentl",-"impacit - y
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RSVP E-mail gmitchell@scppa:org or call Geri Mitchell at,,(626) 793-9364
Lunch sponsored by SCPPA. Parking will be validated
41 102
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AZ Uv.SA
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
AND AZUSA CITY COUNCIL
FROM: ANN GRAF GAYNOR, INTERIM DIRECTOR OF INFORMATION TECHNOLOGY
DATE: NOVEMBER 22, 2004
SUBJECT: SOFTWARE SUPPORT FROM LUND PERFORMANCE SOLUTIONS
RECOMMENDATION
It is recommended that the Utility Board/City Council:
1. Waive formal sealed bids in accordance with Azusa Municipal Code Section 2-523
section C, no competitive market, which allows for acquisition of proprietary services
that can only be provided by one source.
2. Approve of a contract with Lund Performance Solutions, in the amount of $15,000.00,
for software support services, subject to any changes made by the City Attorney.
BACKGROUND
In order to adequately maintain and support our existing Customer Information System during
the period of conversion to a new Customer Information System, it has become critical to
retain a consultant with the level of expertise that will allow us to mitigate any software
problems.
Services provided by Lund will be as follows: 60 hours of consulting time to be used between
the periods of December 2, 2004 through June 30, 2005. If all these hours are not utilized
maintaining the MUIS system, an area has been identified where Lund's service will be
beneficial--in the archival of the MUIS data from the HP3000.
FISCAL IMPACT
Sufficient funds are available in the Information Technology Department's FY 2005 operating
budget in the division that supports the Utilities, under account 48-49-942-000-6493.
Prepared by:
Ann Graf, Interim Director of Information Technology //% x
/41 --
033