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HomeMy WebLinkAboutI-8 Staff Report - SGVMWD Grant AgreementUB CONSENT ITEM I-8 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: JULY 20, 2020 SUBJECT: APPROVE GRANT AGREEMENT WITH SAN GABRIEL VALLEY MUNICIPAL WATER DISTRICT FOR WATER RELATED PROJECTS BACKGROUND: The San Gabriel Valley Municipal Water District (SGVMWD) has authorized a $50,000 grant to be disbursed to the City of Azusa for expenses related to water projects. The proposed action will approve the Grant Agreement and allow for funds to be received by Azusa Light & Water for water conservation purposes prior to December 31, 2020. RECOMMENDATION: Staff recommends the Utility Board take the following action: 1) Approve the Grant Agreement with the San Gabriel Valley Municipal Water District in the amount of $50,000 for use in water-related projects; and 2) Authorize the Director of Utilities to execute the Grant Agreement, in a form acceptable to the City Attorney. ANALYSIS: The City of Azusa is one of four cities that established the San Gabriel Valley Municipal Water District. SGVMWD is one of twenty-nine (29) state water contractors, whose mission is to provide supplemental state project water to its member agencies. At the June 8, 2020 board meeting, the SGVMWD Board of Directors authorized the disbursement of a grant of up to $50,000 to each member city, to support water-related activities and costs. APPROVED UTILITY BOARD 7/20/2020 Approve SGVMWD Grant July 20, 2020 Page 2 Such water-related activities could include the replacement of turf at City facilities with drought tolerant irrigation and landscape. A proposed list of potential projects within the City include: Location Description Amount Arrow Highway Medians Drought Tolerant Landscape $17,000 Well 7 Drought Tolerant Landscape $10,000 Well 8 Drought Tolerant Landscape $10,000 Water Yard Drought Tolerant Landscape $5,000 Griffith Reservoir Site Drought Tolerant Landscape $8,000 Total Request: $50,000 All drought tolerant landscape projects would include the removal of existing grass/shrubs and installation of a drip irrigation system with weather based controller, new native/drought tolerant plants, and ground cover. Such activities would save water, and provide an aesthetically pleasing example of drought tolerant landscape to the community. FISCAL IMPACT: The fiscal impact of accepting this grant is up to $50,000 revenue to the Water Fund as reimbursement for funds spent on water-related projects. Funds to initiate these projects are available in Account No. 32-40-721-791-6633 (Water Conservation Program) in the amount of $100,000, 32-40-722-701-6805 (Maintenance/Land Improvement) in the amount of $50,000, and 32-40-723-751-6805 (Maintenance/Land Improvement) in the amount of $20,000. Prepared by: Reviewed and Approved: Jared Macias Manny Robledo Assistant Director of Utilities - Water Operation Director of Utilities Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1) SGVMWD Grant Agreement 2) SGVMWD Letter dated June 10, 2020 -1 - GRANT AGREEMENT As of June 30, 2020, San Gabriel Valley Municipal Water District, herein “Water District,” and, City of Azusa, herein “City,” agree as follows: 1.Purpose. This Agreement sets forth the terms under which the Water District shall grant money to the City and under which the City shall spend the grant. 2.Project Identification. The grant money shall be used by the City for water-related projects (the “Project”) the City shall select in its discretion. The City shall identify the particular projects by September 30, 2020 and shall notify the Water District in writing of the selected Project promptly after the City has finalized its selection. 3.Grant Amount. The Water District shall grant the City not to exceed $50,000.00 (the “Grant Amount”). The money shall be disbursed to the City by the Water District within thirty days after the City presents an invoice to the Water District for work on the Project in an amount up to the Grant Amount. The Grant Amount shall not be increased if the cost of the Project exceeds the above amount. The Grant Amount must be used for a water-related Project and cannot be deposited in the City’s general fund unless it reimburses the City for Project costs paid from the general fund. 4.Division of Responsibility. (a) Water District is only responsible for providing the City with the grant in accordance with this Agreement. The Water District is not responsible for the design, construction, operation or maintenance of the Project. 5.Warranties. (a) The Water District makes no warrantee with respect to the efficacy of the Project. (b)The City warrants the grant shall be used exclusively for the Project. Attachment 1 - 2 - 6. Time for Performance. Time for performance shall begin after the date first above written and the City shall use its best efforts to complete the Project by December 31, 2020. 7. Indemnity. City shall save and hold the Water District, its officers, agents and employees, free and harmless from any and all costs, liability or damages arising out of any act or omission to act, including any negligent act or omission to act (where there is a duty to act) by City, its officers, agents or employees in connection with this Agreement, except to the extent caused by the sole negligence or willful misconduct of Water District, its officers, agents or employees. 8. Miscellaneous. (a) In an action brought to enforce this Agreement, the prevailing party shall be entitled to recover from the other reasonable costs of suit and attorney fees. Both parties agree to arbitration of disputes concerning this Agreement as an alternative to court action. (b) Notices given pursuant to the provisions of this Agreement, or necessary to carry out its provisions, shall be in writing and delivered personally to the person to whom the notice is to be given; mailed postage prepaid, addressed to such person; sent by overnight delivery by a nationally-recognized overnight courier; or sent by e-mail, with receipt confirmed in writing or telephonically. Addresses for this purpose shall be: Water District: San Gabriel Valley Municipal Water District Attn: Darin Kasamoto, General Manager 1402 N. Vosburg Drive (P.O. Box 1299) Azusa, CA 91702-1299 dkasamoto@sgvmwd.com (626) 969-7911 City: City of Azusa Attn: Director of Utilities 729 North Azusa Avenue Azusa, CA 91702 mrobledo@azusaca.gov (626) 812-5209 - 3 - IN WITNESS WHEREOF, the parties hereby have caused this Agreement to be executed the date first above written. APPROVED: APPROVED: San Gabriel Valley City of Azusa Municipal Water District By: By: Thomas Wong Manny Robledo President Director of Utilities Attest: Attest: By: Steven T. Placido Jeffrey Lawrence Cornejo, Jr. Secretary City Clerk [Seal] [Seal] Approved as to Form: Approved as to Form: Best Best & Kreiger LLP By: James D. Ciampa Jeff Ferre District Counsel City Attorney Attachment 2