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C02-10 ULCAgenda Item No. STAFF REPORT TO: Honorable Mayor and City Council Members FROM: City Manager AGENDA DATE: March S, 2002 SUBJECT: Contract Extension for Wastewater Services with Urban Logic Services Upon completion of the City of Beaumont's Wastewater Reclamation plant in 1995, Urban Logic Services assumed operation of the plant and maintenance of the City's collection system. The assumption of these services involved the privatization of existing City wastewater personnel, and resulted in substantial savings to the City since. The original service contract was for a five year period, with a fixed monthly cost with annual increases based upon the Consumer Price Index (CPI). The services provided have been highly professional, and the contractor has maintained excellent relations with the regulatory agency, the California Regional Water Quality Control Board, with no significant violations. The contractor is highly responsive and the wastewater services are provided in a seamless manner with other City services, and provide the City with significant economies of scale as reported to the City Council's Finance Committee. RECOMMENDATION.• It is recommended that the City Council approve the enclosed contract extension and authorize the Mayor to execute the agreement. Respeemy Submitted, C. Kapanic , C �, anager p;. Exh----- bit$ A - Map B_ NPDES perm; t C D HouComputer, System r, y Rates OPE-RA 2N AND PROFESSIONAL S wA3TMAINT ERVICES AGREEMENT: TER TREATMENT FA E OF B CIT Y OF EAU THIS LITY AND NIONT I S AGREEMENT SEWER SYSTEM 1995, by and between is made and effective (►►OWNER►►) and the n the CITY OF BEAUMONT this 1st day of April URB a municipal , (`►CONSULTANT,►). The AN LOGIC SERVICES' INC, mu ipal corporation hereinCONSa Nevada corporationOWNER Or, collectively, sometimes referred to "PARTIES ►, This Agree REGAL§ merit is ente facts' mutual rst red into on the b unde andings alis of t cyst A. The OWNER owns, o and intentions of the P he following Aerate PARTIES: em and facilities s and maintains a consist for the benefit public sewage ("Collet ng of a sealer pipeline c of the OWNER's res. tion F collection idents, acilities►►) , and a 11 In -III n and tr Wastewater ansport system ewa in the Cit treatment and disposalion gallon per d facility locate ay (►►mgd") Facilities y of Beaumont ("Treatment d at 715 and Treatment Facilities►►). 4th Street referred to herein as r►O Facilit1es shall SometimesCollection approx. ;mate location of NER�s Facilities", A m be collectively Exhibit ►►A►► the OWNER map depictin B. T and made a Part hereof.s Facilities is attached g the The OWNER is the holder hereto as (the ►►NPDES Permit►►) . T der o f an NPDES Pe The OWNER is informed and No. Cq pt b1337� d bejieVes that, as U of the date of this Agreement, it is in substantial compliance with the conditions appurtenant to the NPDES Permit, a true and correct copy of which is attached hereto as Exhibit "B" and made a part hereof. C. The OWNER has found and determined that significant savings in the cost of operating and maintaining the Collection Facilities and the Treatment Facilities can be obtained by contracting with a privately -owned firm knowledgeable in the operation and maintenance of such Facilities. The CONSULTANT has represented and warranted to the OWNER that the CONSULTANT possesses the necessary skills, qualifications, personnel and equipment to provide such services. D. The PARTIES have agreed that the OWNER will retain the CONSULTANT for the purpose of operating and maintaining the Collection Facilities and Treatment Facilities on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants of the PARTIES, the OWNER and the CONSULTANT agree as follows: 1. CONSULTANT's Obligations. Subject to all of the provisions of this Agreement, the CONSULTANT is obligated to operate and maintain the OWNER's Collection Facilities and Treatment Facilities as follows: 2 a. Included Maintenance Activities: The CONSULTANT shall perform all routine and preventative maintenance and repair of the OWNER's Facilities, at the CONSULTANT's sole cost and expense. The CONSULTANT shall also supervise and coordinate the activities of contractors hired by the OWNER for the purpose of performing emergency and other non -routine repairs and replacements, in capital improvement projects. In the event that any such work requires competitive bidding, the CONSULTANT shall assist the OWNER in the preparation of bid documents and specifications. b. Best Efforts: To use its best efforts and such time as is necessary to properly, timely and in a cost-effective manner, fulfill its duties under this Agreement and to carry out the desires and intentions of the PARTIES. The CONSULTANT shall likewise require all of its employees, agents, contractors and subcontractors to use their best efforts and such time as is necessary to properly, timely and in a cost-effective manner fulfill their duties and to carry out the desires and intentions of the PARTIES. C. Prompt Notification: To promptly notify the OWNER, upon gaining knowledge of a condition, event, or accumulation of events, which may affect the scope and/or cost of services provided pursuant to this Agreement, and the reasons therefor. 3 d. Compliance With Law: To strictly comply with the requirements of the NPDES Permit, and to strictly comply with all other applicable federal, state and county statutes, ordinances and regulations. If such compliance is impossible for reasons beyond its control, the CONSULTANT shall immediately notify the OWNER of the fact and the reasons therefor. e. Wastewater Quality: To provide all labor, materials and equipment to perform necessary laboratory testing and analysis to determine whether the Treatment Facilities meets or exceeds NPDES Permit requirements and the requirements of law. f. Licensing: To insure that all personnel assigned to perform the services required hereunder are properly licensed and/or certified to operate and maintain the Facilities. g. Employee Transition: To prepare and implement a plan, with the OWNER's approval, for the transition of OWNER's employees involved in the operation and maintenance of OWNER's Facilities from public to private sector employment. h. Permitting: In the event the OWNER is required to obtain an approval, waiver, permit or other administrative, legislative or judicial entitlement, CONSULTANT shall assist the OWNER by attending such meetings and providing such documents in the CONSULTANT's possession or control as are necessary. 4 i. Inventory of Consumables: To prepare and submit to the OWNER, on or before July 1, 1995, an inventory of consumables on hand including, but not limited to, chemicals, lubricants, spare parts, materials and supplies reasonably required and necessary for the normal operation and maintenance of the OWNER's Facilities, including recommendations for any changes in such inventory. The OWNER and the CONSULTANT shall thereupon agree on appropriate adjustments to the inventory compiled by the CONSULTANT, and to the extent that the competitive bidding requirements applicable to OWNER are not violated, CONSULTANT shall thereafter arrange for and provide such consumables, at CONSULTANT's sole cost and expense throughout the term of this Agreement. j. Inventory and Use of OWNER's Equi menta To prepare and submit to the OWNER, on or before July 11 1995, an inventory of tools and equipment on hand including, but not limited to, spare parts, materials and supplies reasonably required and necessary for the normal operation and maintenance of such equipment, including recommendations for any changes in such inventory. The OWNER and the CONSULTANT thereupon agree on appropriate adjustments to the inventory compiled by the CONSULTANT. Throughout the term of this Agreement, the CONSULTANT may use OWNER's tools and equipment to the extent 5 necessary to perform the services required of CONSULTANT hereunder, and CONSULTANT agrees to perform all maintenance thereon at its sole cost and expense. Upon termination of this Agreement, CONSULTANT shall return all such tools and equipment to the OWNER in good condition, reasonable wear and tear excepted. The CONSULTANT shall not replace or dispose of any such tools or equipment without the OWNER's prior approval and in compliance with the laws governing the OWNER regarding competitive bidding and disposal of surplus property. k. Customer Services: To develop and implement a plan, with the OWNER's approval, for high quality customer service. 1. Reports: To periodically report to the OWNER, as follows: (1) Annually• (a) The CONSULTANT shall prepare and submit a budget to the OWNER not later than 100 days before the commencement of any fiscal year (defined as July 1, to June 30), which budget shall reasonably estimate revenue, and expenditures necessary for the operation, maintenance and repair of the Collection Facilities and the Treatment Facilities. (b) The CONSULTANT shall evaluate the Collection Facilities and the Treatment Facilities 0 for the purpose of identifying capital improvement needs (replacement, upgrade and expansion) and preparing and submitting to OWNER a Capital Improvement Plan; (c) The CONSULTANT shall prepare and submit to the OWNER a proposed Capital Improvement Budget to accompany the evaluation required in Subparagraph (b) above, and the budget required in Subparagraph (a) above. (2) Quarterly: The CONSULTANT shall prepare and submit to OWNER reports summarizing all operations and maintenance activities, detailing the operating conditions of critical Treatment Facilities (including, without limitation, emergency and safety equipment alarms). (3) Monthly: The CONSULTANT shall keep accurate and complete records of all materials provided and services performed, and shall'provide a monthly summary of the same in support of the CONSULTANT's monthly billings. All billings shall be presented to the OWNER on or before the 15th of each month and shall be paid no later than the end of the following month. The OWNER shall have the right to inspect and copy, at any reasonable time, the records required under this subsection. 7 (4) Daily: The CONSULTANT shall maintain a daily log at the Treatment Facilities, which log shall include, but not be limited to, a general description of duties performed, special problems and occurrences, condition of the process units, unusual conditions, evidence of shock loads, slug loads, and non -permitted discharges. (5) Periodically: The CONSULTANT shall also provide such other written or oral summary reports as may be reasonably requested by the OWNER. M. Emergencies: To take such immediate and necessary steps as are necessary to assist OWNER in repairing the OWNER's Facilities during emergencies resulting in threats to public health and safety. During such emergencies, the CONSULTANT shall keep the OWNER informed to the fullest extent possible, and thereafter shall report, in writing, the extent of damage sustained, the repairs undertaken, and the costs thereof. Funds to defray the costs of emergency repairs shall be obtained from OWNER's Emergency Fund referred to in Paragraph 2 below. n. Computer System: To provide, at CONSULTANT's sole cost and expense, computerized maintenance and data management systems which shall provide a record of each repair performed by the CONSULTANT or at the CONSULTANT's direction, to control the predictive and preventative maintenance systems, and to track information and system performance required for regulatory reporting including daily equipment status and exception reports, process control parameters and water quality objectives. Such systems shall be installed and functional on or before July 1, 1995. Upon termination of this Agreement, CONSULTANT shall transfer title and possession of all hardware and software to the OWNER, and to provide appropriate training to OWNER's representatives. A complete description of the hardware and software referred to herein is described on Exhibit "C" attached hereto and made a part hereof. o. Books and Records: To maintain, and retain for a period of not less than four years following termination of this Agreement, full and accurate books and accounts, in accordance with the practices established by or consistent with those utilized by the Controller of the State of California for public agencies. Such books and accounts shall be maintained on a fiscal year beginning on July 1, and ending on June 30, following. At OWNER's option and expense, such books and accounts shall be audited annually by an independent certified public accountant. p. Insurance: To furnish and maintain, throughout the term of this Agreement, comprehensive, general liability insurance and automobile liability insurance coverage of no 9 less than $2,000,000 combined single limit. The OWNER shall be named therein as an additional insured. Such policies shall each provide that written notice shall be given to the OWNER at least 45 days prior to cancellation of such policy or policies. The CONSULTANT shall furnish to the OWNER certificates of insurance (including Worker's Compensation Insurance) to the OWNER for its approval and acceptance, on or before April 15, 1995, and annually thereafter. q. Indemnification: To the extent permitted by law, and notwithstanding the insurance coverage requirements specified in Subparagraph p above, the CONSULTANT shall fully indemnify the OWNER against, and hold the OWNER and its employees and agents completely free and harmless from, any cost, expense, claim, demand, judgment, loss, injury and/or liability of any kind or nature, including personal injury, death or property damage, asmsr}�a L �L�,���, whether in contract or tort, that may arise from, directly or indirectly or be occasioned by, or be in any way connected with this Agreement or the maintenance and operation of the OWNER's Facilities or any negligent act or omission of the CONSULTANT, its employees, agents and/or subcontractors. The CONSULTANT shall not be obligated to indemnify the OWNER against OWNER's negligence. Except as otherwise expressly provided for in this Agreement, 10 it is the intent of the PARTIES that the OWNER shall not be obligated to contribute, voluntarily or involuntarily, any of its own funds to the operation and maintenance of the Collection Facilities and/or the Treatment Facilities and that all costs, expenses and liabilities associated with the Facilities shall be borne by the CONSULTANT. r. Inspection: To permit immediate inspection of the Collection Facilities and the Treatment Facilities by OWNER's representatives and representatives of regulatory agencies. S. Office Space: The CONSULTANT may occupy and use the OWNER's offices and other structures situated at the Treatment Facilities site during the term of this Agreement; provided, however, upon termination of this Agreement, CONSULTANT shall vacate the same, leaving them in good and broom -clean condition, reasonable wear and tear excepted. t. Safety: The CONSULTANT shall assume sole and complete responsibility for the safety of all persons and property during performance of services pursuant to this Agreement. This requirement shall apply continuously and not be limited to normal working hours. The CONSULTANT's duty to ensure safety shall include, without limitation, the erection and maintenance of temporary fences and barriers, the placement of guards, lights and signals, and all other precautions necessary to maintain the highest standards of safety. The 11 CONSULTANT shall actively seek to prevent accidents and shall notify anyone in the vicinity of CONSULTANT's work sites of safety practice violations, whether or not such people are in its or its subcontractors' employ. The CONSULTANT is encouraged to employ a safety leader with training in first aid. First aid supplies required by law shall be continuously available. Any duty on the part of the OWNER or the OWNER's agents and/or representatives to monitor and/or review the CONSULTANT's activities and performance shall not be construed to include the review of the adequacy of the CONSULTANT's safety measures. Nothing herein shall relieve the CONSULTANT of its sole and complete responsibility for safety conditions. U. Hazardous Materials: The CONSULTANT shall not permit, authorize, or suffer at any time the presence, use, manufacture, handling, generation, storage, treatment, discharge, release, burial or disposal on, under or about OWNER's Facilities of any hazardous substance and/or materials, or the transportation to or from the OWNER's Facilities of any hazardous substance or materials except as required by, and pursuant to, applicable federal and state law, rules, regulations and permits. The CONSULTANT hereby specifically acknowledges and agrees to indemnify, defend, protect and herein hold harmless the OWNER, its officials, officers, 12 employees, agents, OWNER's Facilities and property from and against all claims, actual damages (including, without limitation, special and consequential damages), punitive damages, injuries, costs, response costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties and expenses of any kind whatsoever paid, incurred or suffered by, or asserted against, the OWNER and/or OWNER's Facilities directly or indirectly arising from or attributable to (i) a spill, leak or the escape or release of any hazardous substance or material into the environment, or (ii) any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan concerning any hazardous substance and/or material on, under or about OWNER's Facilities and/or property, regardless of whether undertaken due to governmental action. To the fullest extent permitted by law, the foregoing indemnification shall apply regardless of the fault, active or passive negligence, breach of warranty of CONSULTANT; provided, however, that the CONSULTANT shall not be obligated to indemnify OWNER against any unlawful discharges by third parties into OWNER's Facilities that could not have been reasonably foreseen by CONSULTANT. 13 For purposes of this Agreement, the term "hazardous substance" and the term "hazardous material" means any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. 9601 et sea.), the Hazardous Materials Transportation Act (49 U.S.C. 1801 et sea.), the Resource Conservation Recovery Act (42 U.S.C. 6901 et sea.), the Toxic Substances Control Act (15 U.S.C. 2601 et sec.), the Clean Water Act (33 U.S.C. 1251 et sea.), the California Hazardous Waste Control Act (Health and Safety Code Section 25100 et sea.), the California Hazardous Substance Account Act (Health and Safety Code Section 25330 et. sea.) the California Safe Drinking Water and Toxic Enforcement Act (Health and Safety Code Section 25249.5 et seg.), the California Hazardous Waste Management Act (Health and Safety Code Section 25170.1 et sea.), the California Porter -Cologne Water Quality Control Act (Water Code Section 1300 et sea.), all as amended, or any other federal, state or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect. 14 The said terms shall also mean any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above -statutes or under any statutory or common law theory based on negligence, trespass, intentional tort, nuisance or strict liability or under any reported decision of a state or federal court, and shall also mean and include petroleum or crude oil and asbestos. V. Competitive Bidding: CONSULTANT shall not perform, and is not obligated to perform, any work in violation of the competitive bidding laws applicable to the OWNER; provided, however, that the CONSULTANT shall promptly notify the OWNER, in writing and as far in advance as possible, of the need to perform any work or to purchase any supplies or materials reasonably necessary to properly and efficiently operate and maintain the OWNER's Facilities, the purchase and/or performance thereof requires compliance with the applicable competitive bidding statute. 2. OWNER's Obligations. The OWNER is obligated to: a. Emergency Fund: Fund and maintain an Emergency Fund in an amount of not more than $25,000.00 nor less than $15,000.00, accrued interest included, for the sole purpose of funding emergency repairs to the OWNER's Facilities. The OWNER shall promptly replenish this Emergency Fund as needed. 15 b. CONSULTANT Compensation: To pay to the CONSULTANT, for services rendered by CONSULTANT pursuant to this Agreement, a total lump sum annual fee of $408,480.00, to be paid in 12 equal monthly installments of $34,070.00, including a mobilization advance of $34,070.00 to be paid to CONSULTANT upon execution of this Agreement by the OWNER. The annual fee shall be adjusted on or about each anniversary date of this Agreement in accordance with increases in the U.S. Department of Labor Consumer Price Index for the Orange -Riverside -San Bernardino County area, its successor index, or as otherwise mutually agreed upon by the PARTIES. C. Extra Work Compensation: In addition to the annual fee described in Subparagraph b above, OWNER shall pay for extra work, labor and services provided by CONSULTANT on a times and materials basis, in accordance with CONSULTANT's Hourly Rate Schedule attached hereto as Exhibit "D" and made a part hereof. OWNER and CONSULTANT agree that any changes in hourly rates and other fees and costs referred to on Exhibit "'D" shall be made pursuant to the Consumer Price Index or mutual agreement of the PARTIES. As used herein, "extra work" means and includes compliance with, or performance of, new and additional operating requirements imposed by the OWNER or by regulatory 16 agencies, emergencies resulting from natural disasters and other catastrophic occurrences. d. Liaison: The OWNER hereby designates its City Manager as liaison between the OWNER and CONSULTANT; provided, however, the OWNER reserves the right to change, from time to time, this designation. e. Utilities: To arrange and directly pay for all utility services necessary to the operation of OWNER's Facilities. f. Assistance to CONSULTANT: The OWNER shall provide or otherwise make available to CONSULTANT all information, requirements, criteria, existing studies and reports in OWNER's possession or control. 3. Miscellaneous Provisions. a. Commencement and Termination of Agreement: The CONSULTANT shall commence the management, operation and maintenance of the Collection and Treatment Facilities on or before April 1, 1995 and continue to operate and maintain the OWNER's Facilities until this Agreement is terminated as follows: (1) At the end of the fifth year of this Agreement, but no later than March 31, 2000; or 17 (2) Earlier by mutual agreement of the PARTIES; or (3) Either PARTY terminates this Agreement at its option, and without prejudice to any other remedy to which it may be entitled at law or in equity, by giving the other PARTY written notice of termination if any of the following events occurs: (i) The notified PARTY fails to perform to the satisfaction of the other PARTY or has defaulted in the performance of any obligation or payment of any indebtedness under this Agreement and has failed to cure the default within 30 days after written notice of the default had been given by the non -breaching PARTY. (ii) After good faith negotiations, the PARTIES fail to agree on the purposes, expenses, operations or other material aspects of the OWNER's Facilities. (iii) Circumstances arise which are beyond control of the PARTIES (such as Court orders or regulatory decisions) and which make the termination of this Agreement desirable or necessary. Notwithstanding the termination of this Agreement, the PARTIES shall be required to carry out all provisions of this Agreement which contemplate performance subsequent HE to such termination, and termination shall not affect any liability or other obligation that accrued prior to the date of termination. In the event of termination the PARTIES agree that OWNER shall not be liable to pay to CONSULTANT the unearned balance or any portion thereof of the compensation provided for in this Agreement. b. Extension of Term: This Agreement may be extended beyond the date of termination upon such terms and conditions as the PARTIES may mutually agree upon. C. Independent Contractor: The CONSULTANT shall perform the services required hereunder in the CONSULTANT's own way as an independent contractor, and in pursuit of CONSULTANT's independent calling, and not as an employee of the OWNER. The CONSULTANT shall be under the control of the OWNER only as to the result to be accomplished and the personnel assigned to perform services. However, the CONSULTANT shall regularly confer with the OWNER's designated liaison and other authorized agents and representatives, as provided for in this Agreement. The CONSULTANT hereby warrants and represents to the OWNER that the services to be provided hereunder shall be performed in accordance with the standards customarily applied to an experienced and competent professional organization rendering 19 the same or similar services, and that the individual signing this Agreement on behalf of the CONSULTANT has the full authority to bind the CONSULTANT to all of the terms, conditions, covenants and promises contained in this Agreement. d. Subcontractors: The CONSULTANT may, at its sole cost and expense, employ such competent and qualified professionals, consultants and subcontractors as CONSULTANT deems necessary. e. Specific Enforcement: This Agreement may be specifically enforced by either PARTY. f. Assignment: Neither this Agreement nor any duties or obligations hereunder shall be assigned by the CONSULTANT without the prior written consent of the OWNER. g. Further Acts: Each PARTY agrees to execute and deliver all documents and perform all further acts that may be reasonably necessary to carry out the provisions of this Agreement. h. Amendment: This Agreement may be amended in writing by mutual agreement of the PARTIES. i. Protests: In the event the CONSULTANT considers a request by OWNER to perform a service the CONSULTANT believes to be outside the scope of this Agreement, or if the CONSULTANT considers any order or ruling of the OWNER's liaison to be unfair, it may immediately request that it be confirmed and delivered in writing. Within 10 days after receipt of such 20 writing, and without delaying performance of such request, order or ruling, file a written protest with the OWNER stating clearly and in detail its objections and the reasons therefor. Except for such grounds of protest or objections as are made of record in the manner specified and within the time stated herein, the CONSULTANT hereby waives all grounds for protests or objections, and hereby agrees that as to all matters not included in such protests, the orders, instructions and decisions of the OWNER shall be final and conclusive. j. Arbitration: Any dispute which may arise by and between the OWNER and the CONSULTANT, including the CONSULTANT's subcontractors, laborers, and suppliers, shall be submitted to binding arbitration. Arbitration shall be conducted by the Judicial Arbitration and Mediation Services, Inc., in accordance with its construction industry rules in effect at the time of the commencement of the arbitration proceeding, and as set forth in this Paragraph. Arbitration shall be conducted before a panel of three arbitrators, unless the PARTIES agree in writing to submit the matter before a single arbitrator. The arbitrators must decide each and every dispute in accordance with the laws of the State of California, and all other applicable laws. The arbitrators' decision and award are subject to judicial review for errors of fact or law in accordance with Section 1296 of the Code of Civil Procedure, 21 by a Superior Court of competent venue and jurisdiction. Discovery may be conducted in the arbitration proceeding pursuant to Section 1283.05 of the Code of Civil Procedure. Unless the PARTIES stipulate to the contrary, prior to the appointment of the arbitrators, all disputes shall first be submitted to non-binding mediation, conducted by either the American Arbitration Association or Judicial Arbitration and Mediation Services, Inc., in accordance with their respective rules and procedures for such mediation. In any arbitration or litigation arising out of this Agreement, or the performance of any obligation under this Agreement, the arbitrators or the court in such arbitration or litigation shall --award costs and expenses of arbitration or litigation, including mediation and arbitration fees and expenses, expert witness fees and attorneys' fees, to the prevailing PARTY. k. Integration: This Agreement supersedes any and all previous agreements, either oral or written, between the PARTIES with respect to the OWNER's Facilities, and contains all of the covenants and agreements between the PARTIES with respect to the OWNER's Facilities. 1. Severability: If any one or more of the terms, provisions, promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable, for any reason whatsoever, each and all of the 22 remaining terms, provisions, promises, covenants and conditions of this Agreement shall be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. M. Ownership of Wastewater: The OWNER shall retain title and ownership to all wastewater and treatment process by products. n. OwnershiF_,of Documents,: All draft and final reports, budgets, plans, drawings, studies, maps, photographs, specifications, data, notes and all other documents of any kind or nature prepared or developed by CONSULTANT in connection with the performance of services hereunder shall become the sole property of the OWNER, and the CONSULTANT shall promptly deliver all such materials to the OWNER. At the OWNER's sole discretion, the CONSULTANT may be permitted to retain original documents and furnish reproductions. If the OWNER uses such documents for any purpose other than for which they were prepared without the CONSULTANT'S prior written approval, the OWNER hereby waives any claims against the CONSULTANT and will hold CONSULTANT harmless from any claim or liability for injury or loss arising from the OWNER's unauthorized use. o. Financial Disclosure: If required by law, CONSULTANT shall annually prepare and file with OWNER a Conflict of Interest Statement. 23 IN WITNESS WHEREOF, the PARTIES have executed this Agreement to be effective on the day first above written. •.► CITY OF BEAUMONT By Ma r CONSULTANT: URBAN LOGIC SERVICES, INC. By- Presid nt 24 Exhibits A - Map B - NPDES Permit C - Computer System D - Hourly Rates PROFESSIONAL SERVICES AGREEMENT: OPERATION AND MAINTENANCE OF CITY OF BEAUMONT'S WASTEWATER TREATMENT FACILITY AND SEWER SYSTEM THIS AGREEMENT, is made and effective this 19th day of _ _February, , 2002„ by and between the CITY OF BEAUMONT, a municipal corporation ("OWNER") and the URBAN LOGIC SERVICES, INC., a Nevada corporation ("CONSULTANT"). The OWNER and CONSULTANT are sometimes referred to herein as the "PARTY" or, collectively, "PARTIES". RECITALS This Agreement is entered into on the basis of the following facts, mutual understanding and intentions of the PARTIES: A. The OWNER owns, operates and maintains a public sewage system and facilities for the benefit of the OWNER's residents, consisting of a sewer pipeline collection and transport system ("Collection Facilities"), and a 1.5 million gallon per day ("mgd") wastewater treatment and disposal facility (now permitted as 2MGD subject to expansion/addition of equipment), located at 715 4t'' Street in the City of Beaumont ("Treatment Facilities"). Collection Facilities and Treatment Facilities shall sometimes be collectively referred to herein as "OWNER's Facilities". A map depicting the approximate location of the OWNER's Facilities is attached hereto as Exhibit "A" and made a part hereof. B. The OWNER is the holder of NPDES Permit, No. CA0105376 (the "NPDES Permit"). The OWNER is informed and believes that, as of the date of this Agreement, it is in substantial compliance with the conditions appurtenant to the NPDES Permit, a true and correct copy of which is attached hereto as Exhibit `B" and made a part hereof. C.. The OWNER has found and determined that significant savings in the cost of operating and maintaining the Collection Facilities and the Treatment Facilities can be obtained by contracting with a privately -owned firm knowledgeable in the operation and maintenance of such Facilities. The CONSULTANT has represented, warranted, and, in the provision of such services to the owner since 1995, demonstrated to the OWNER that the CONSULTANT possesses the necessary skills, qualifications, personnel and equipment to provide such services. D. The PARTIES have agreed that the OWNER will retain the CONSULTANT for the purpose of operating and maintaining the Collection Facilities and Treatment Facilities on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants of the PARTIES, the OWNER and the CONSULTANT agree as follows: 1. CONSULTANT'S Obligations. Subject to all of the provisions of this Agreement, the CONSULTANT is obligated to operate and maintain the OWNER's Collection Facilities and Treatment Facilities as follows: a. Included Maintenance Activities: The CONSULTANT shall perform all routine and preventative maintenance and repair of the OWNER's Facilities, at the CONSULTANT's sole cost and expense. The CONSULTANT shall also supervise and coordinate the activities of contractors hired by the OWNER for the purpose of performing emergency and other non -routine repairs and replacements, in capital improvement projects. In the event that any such work requires competitive bidding, the CONSULTANT shall assist the OWNER in the preparation of bid documents and specifications. b. Best Efforts: To use its best efforts and such time as is necessary to properly, timely and in a cost-effective manner, fulfill its duties under this Agreement and to carry out the desires and intentions of the PARTIES. The CONSULTANT shall likewise require all of its employees, agents, contractors and subcontractors to use their best efforts and such time as is necessary to properly, timely and in a cost effective manner fulfill their duties and to carry out the desires and intentions of the PARTIES. C. Prompt Notification: To promptly notify the OWNER, upon gaining knowledge of a condition, event, or accumulation of events, which may affect the scope and/or cost of services provided pursuant to this Agreement, and the reasons therefor. d. Compliance With Law: To strictly comply with the requirements of the NPDES Permit, and to strictly comply with all other applicable federal, state and county statutes, ordinances and regulations. If such compliance is impossible for reasons beyond its control, the CONSULTANT shall immediately notify the OWNER of the fact and the reasons therefor. C. Wastewater Quality: To provide all labor, materials and equipment to perform necessary laboratory testing and analysis to determine whether the Treatment Facilities meets or exceeds NPDES Permit requirements and the requirements of law. f. Licensimj : To insure that all personnel assigned to perform the services required hereunder are properly licensed and/or certified to operate and maintain the Facilities. g. Permittin,: In the event the OWNER is required to obtain an approval, waiver, permit or other administrative, legislative, or judicial entitlements, CONSULTANT shall assist the OWNER by attending such meetings and providing such documents in the CONSULTANT's possession or control as are necessary. h. Inventory of Consumables: To prepare and submit to the OWNER, on or before 3 December 31, 2001, an inventory of consumables on hand including, but not limited to, chemicals, lubricants, spare parts, materials and supplies reasonably required and necessary for the normal operation and maintenance of the OWNER's Facilities, including recommendations for any changes in such inventory. The OWNER and the CONSULTANT shall thereupon agree on appropriate adjustments to the inventory compiled bythe CONSULTANT, and to the extent that the competitive bidding requirements applicable to OWNER are not violated, CONSULTANT shall thereafter arrange for and provide such consumables, at CONSULTANT's sole cost and expense throughout the term of this Agreement. Inventory and Use of OWNER's Equipment: To prepare and submit to the OWNER, on or before December 31, 2001, an inventory of tools and equipment on hand including, but not limited to, spare parts, materials and supplies reasonably required and necessary for the normal operation and maintenance of such equipment, including recommendations for any changes in such inventory. The OWNER and the CONSULTANT thereupon agree on appropriate adjustments to the inventory compiled by the CONSULTANT. Throughout the term of this Agreement, the CONSULTANT may use OWNER's tools and equipment to the extent necessary to perform the services required of CONSULTANT hereunder, and the CONSULTANT agrees to perform all maintenance thereon at its sole cost and expense. Upon termination of this Agreement, CONSULTANT shall return all such tools and equipment to the OWNER in good condition, reasonable wear and tear excepted. The CONSULTANT shall not replace or dispose of any such tools or equipment without the OWNER's prior approval and in compliance with the laws governing the OWNER regarding competitive bidding and disposal or surplus property. j. Customer Services: To develop and implement a plan, with the OWNER's approval, for high quality customer service. 4 k. Reports: To periodically report to the OWNER, as follows: (1) Annually: (a) The CONSULTANT shall prepare and submit a budget to the OWNER not later than 100 days before the commencement of any fiscal year (defined as July 1 to June 30), which budget shall reasonably estimate revenue and expenditures necessary for the operation, maintenance and repair of the Collection Facilities and the Treatment Facilities. (b) The CONSULTANT shall evaluate the Collection Facilities and the Treatment Facilities for the purpose of identifying capital improvement needs (replacement, upgrade and expansion) and preparing and submitting to OWNER a Capital Improvement Plan; (c) The CONSULTANT shall prepare and submit to the OWNER a proposed Capital Improvement Budget to accompany the evaluation required in Subparagraph (b) above, and the budget required in Subparagraph (a) above. (2) Quarterl : The CONSULTANT shall prepare and submit to OWNER reports summarizing all operations and maintenance activities, detailing the operating conditions of critical Treatment Facilities (including, without limitation, emergency and safety equipment alarms). (3) Monthly: The CONSULTANT shall keep accurate and complete records of all materials provided and services performed, and shall provide a monthly summary of the same in support of the CONSULTANT's monthly billings. All billings shall be presented to the OWNER on or before the 15th of each month and shall be paid no later than the end of the following month. The OWNER shall have the right to inspect and copy, at any reasonable time, the records required under this subsection. (4) Daily: The CONSULTANT shall maintain a daily log at the Treatment Facilities, which log shall include, but not be limited to, a general description of duties performed, special problems and occurrences, condition of the process units, unusual conditions, evidence of shock loads, slug loads, and non -permitted discharges. (5) Periodically: The CONSULTANT shall also provide such other written or oral summary reports as may be reasonably requested by the OWNER. 1. Emergencies: To take such immediate and necessary steps as are necessary to assist OWNER in repairing the OWNER's Facilities during emergencies resulting in threats to public health and safety. During such emergencies, the CONSULTANT shall keep the OWNER informed to the fullest extent possible, and thereafter shall report, in writing, the extent of damage sustained, the repairs undertaken, and the costs thereof. Funds to defray the costs of emergency repairs shall be obtained from OWNER's Emergency Fund referred to in Paragraph 2 below. M. Computer System: To provide, at CONSULTANT's sole cost and expense, computerized maintenance and data management systems which shall provide a record of each repair performed by the CONSULTANT or at the CONSULTANT's direction, to control the predictive and preventative maintenance systems, and to track information and system performance required for regulatory reporting including control parameters and water quality objectives. Such systems are presently in place and shall be maintained throughout the term of this Agreement. Upon termination of this Agreement, CONSULTANT shall transfer title and possession of all hardware and software to OWNER, and to provide appropriate training to OWNER's representatives. A complete description of the hardware and software referred to herein is described on Exhibit "C" attached hereto and made a part hereof. 6 n. Books and Records: To maintain, and retain for a period of not less than four years following termination of this Agreement, full and accurate books and accounts, in accordance with the practices established by or consistent with those utilized by the Controller of the State of California for public agencies. Such books and accounts shall be maintained on a fiscal year beginning on January 1, and ending on December 31, following. At OWNER's option and expense, such books and accounts shall be audited annually by an independent certified public accountant. o. Insurance: To furnish and maintain, throughout the term of this Agreement, comprehensive, general liability insurance and automobile liability insurance coverage of no less than $2,000,000 combined single limit. The OWNER shall be named therein as an additional insured. Such policies shall each provide that written notice shall be given to the OWNER at least 45 days prior to cancellation of such policy or policies. The CONSULTANT shall furnish to the OWNER certificates of insurance (including Worker's Compensation Insurance) to the OWNER for its approval and acceptance, on or before December 1, 2001, and annually thereafter. P. Indemnification: To the extent permitted by law, and notwithstanding the insurance coverage requirements specified in Subparagraph o above, the CONSULTANT shall fully indemnify the OWNER against, and hold the OWNER and its employees and agents completely free and harmless from, any cost, expense, claim, demand, judgment, loss, injury and/or liability of any kind or nature, including person injury, death or property damage whether in contract or tort, that may arise from, directly or indirectly or be occasioned by, or be in any way connected with this Agreement or the maintenance and operation of the OWNER's Facilities or any negligent act or omission ofthe CONSULTANT, its employees, agents and/or subcontractors. The CONSULTANT shall not be obligated to indemnify the OWNER against OWNER's negligence. Except as otherwise expressly provided for in this Agreement, it is the intent of the PARTIES that the OWNER shall not be obligated to contribute, voluntarily or involuntarily, any of its own funds to the operation and maintenance of the Collection Facilities and/or the Treatment Facilities and that all costs, expenses, and liabilities associated with the Facilities shall be borne by the CONSULTANT. q. Ins;)ection: To permit immediate inspection of the Collection Facilities and the Treatment Facilities by OWNER's representatives and representatives of regulatory agencies. r. Office SL)ace: The CONSULTANT may occupy and use the OWNER's offices and other structures situated at the Treatment Facilities site during the term of this Agreement; provided, however, upon termination of this Agreement, CONSULTANT shall vacate the same, leaving them in good and broom -clean condition, reasonable wear and tear excepted. S. Safety: The CONSULTANT shall assume the sole and complete responsibility for the safety of all persons and property during performance of services pursuant to this Agreement. This requirement shall apply continuously and not be limited to normal working hours. The CONSULTANT's duty to ensure safety shall include, without limitation, the erection and maintenance of temporary fences and barriers, the placement of guards, lights and signals, and all other precautions necessary to maintain the highest standards of safety. The CONSULTANT shall actively seek to prevent accidents and shall notify anyone in the vicinity of CONSULTANT's work sites of safety practice violations, whether or not such people are in its or its subcontractors' employ. The CONSULTANT is encouraged to employ a safety leader with training in first aid. First aid supplies required by law shall be continuously available. Any duty on the part of the OWNER or the OWNER's agents and/or representatives to monitor and/or review the CONSULTANT's activities and performance shall not be construed to include the review of the adequacy of the CONSULTANT's safety measures. Nothing herein shall relieve the CONSULTANT of its sole and complete responsibility for safety conditions. s t. Hazardous Materials: The CONSULTANT shall not permit, authorize, or suffer at any time the presence, use, manufacture, handling, generation, storage, treatment, discharge, release, burial or disposal on, under or about OWNER's Facilities of any hazardous substance and/or materials, or the transportation to or from the OWNER's Facilities of any hazardous substance or materials except as required by, and pursuant to, applicable federal and state law, rules, regulations and permits. The CONSULTANT hereby specifically acknowledges and agrees to indemnify, defend, protect and herein hold harmless the OWNER, its officials, officers, employees, agents, OWNER's Facilities and property from and against all claims, actual damages (including, without limitation, special and consequential damages), punitive damages, injuries, costs, response costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest fines, charges, penalties and expenses of any kind whatsoever paid, incurred or suffered by, or asserted against, the OWNER and/or OWNER's Facilities directly or indirectly arising from or attributable to (i) a spill, leak or the escape or release of any hazardous substance or material into the environment, or (ii) any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan concerning a hazardous substance and/or material on, under or about OWNER'S Facilities and/or property, regardless of whether undertaken due to governmental action. To the fullest extent permitted by law, the foregoing indemnification shall apply regardless of the fault, active or passive negligence, breach of warranty of CONSULTANT; provided, however, that the CONSULTANT shall not be obligated to indemnify OWNER against any unlawful discharges by third parties into OWNER'S Facilities that could not have been reasonably foreseen by CONSULTANT. For purposes of this Agreement, the term "hazardous substance" and the term "hazardous material" means any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. 9601 et seg.), the Hazardous Materials Transportation Act (49 U.S.C. 1801 et sea.), the Resource Conservation Recovery Act (42 U.S.C. 6901 et sea.), the Toxic Substances Control Act (15 U.S.C. 2601 et sea.), the Clean Water Act (33 U.S.C. 1251 et sem.), the California Hazardous Waste Control Act (Health and Safety Code Section 25100 et sea.), the California Hazardous Substance Account Act (Health and Safety Code Section 25330 et sea.), the California Safe Drinking Water and Toxic Enforcement Act (Health and Safety Code Section 25249.5 et seg.), the California Hazardous Waste Management Act (Health and Safety Code Section 25170.1 et sea.), the California Porter -Cologne Water Quality Control Act (Water Code Section 1300 et seg.), all as amended, or any other federal, state or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect. The said terms shall also mean any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above -statutes or under any statutory or common law theory based on negligence, trespass, intentional tort, nuisance or strict liability or under any reported decision of a state or federal court, and shall also mean and include petroleum or crude oil and asbestos. U. Competitive Bidding: CONSULTANT shall not perform, and is not obligated to perform, any work in violation of the competitive bidding laws applicable to the OWNER; provided, however, that the CONSULTANT shall promptly notify the OWNER, in writing and as far in advance as possible, of the need to perform any work or to purchase any supplies or materials reasonably necessary to properly and efficiently operate and maintain the OWNER's Facilities, the 10 purchase and/or performance thereof requires compliance with the applicable competitive bidding statute. 2. OWNER's Obligations. The OWNER is obligated to: a. Emergency Fund: Fund and maintain an Emergency Fund in an amount of not more then $25,000.00 nor less than $15,000.00, accrued interest included, for the sole purpose of funding emergency repairs to the OWNER's Facilities. The OWNER shall promptly replenish this Emergency Fund as needed. b. CONSULTANT Compensation: To pay to the CONSULTANT, for services rendered by CONSULTANT pursuant to this Agreement, a total lump sum annual fee of $416,442.24, to be paid in 12 equal monthly installments of $34,703.52. The annual fee shall be adjusted on or about each anniversary date of this Agreement in accordance with increases in the U.S. Department of Labor Consumer Price Index for the Orange -Riverside -San Bernardino County area, its successor index, or as otherwise mutually agreed upon by the PARTIES. C. Extra Work Compensation: In addition to the annual fee described in Subparagraph b above, OWNER shall pay for extra work, labor and services provided by CONSULTANT on a time and materials basis, in accordance with CONSULTANT's Hourly Rate Schedule attached hereto as Exhibit "D" and made a part hereof. OWNER and CONSULTANT agree that any changes in hourly rates and other fees and costs referred to on Exhibit "D" shall be made pursuant to the Consumer Price Index or mutual agreement of the PARTIES. As used herein, "extra work" means and includes compliance with, or performance of, new and additional operating requirements imposed by the OWNER or by regulatory agencies, emergencies resulting from natural disasters and other catastrophic occurrences. d. Liaison: The OWNER hereby designates its City Manager as liaison between the ii OWNER and CONSULTANT; provided, however, the OWNER reserves the right to change, from time to time, this designation. e. Utilities: To arrange and directly pay for all utility services necessary to the operation of OWNER's Facilities. f. Assistance to CONSULTANT: The OWNER shall provide or otherwise make available to CONSULTANT all information, requirements, criteria, existing studies and reports in OWNER's possession or control. 3. Miscellaneous Provisions. a. Commencement and Termination of Affeement: The CONSULTANT shall commence the management, operation and maintenance of the Collection and Treatment Facilities on or before December 1, 2001. The CONSULTANT shall continue to operate and maintain the OWNER's Facilities for a period of five (5) years, with said period renewable for successive five- year periods at each contract anniversary date (commencing with December 1, 2002), subject to successful and satisfactory services by the CONSULTANT for the preceding year as determined by the OWNER. This Agreement shall remain valid until terminated as follows: (1) Earlier by mutual agreement of the PARTIES; or (2) Either PARTY terminates this Agreement at its option, and without prejudice to any other remedy to which it may be entitled at law or in equity, by giving the other PARTY written notice of termination if any of the following events occur: (i) The notified PARTY fails to perform to the satisfaction of the other PARTY or has defaulted in the performance of any obligation or payment of any indebtedness under this Agreement and has failed to cure the default within 30 days after written notice of the default had been given by the non -breaching PARTY. 12 (ii) After good faith negotiations, the PARTIES fail to agree on the purposes, expenses, operations or other material aspects of the OWNER's Facilities. (iii) Circumstances arise which are beyond control of the PARTIES (such as Court orders or regulatory decisions) and which make the termination of this Agreement desirable or necessary. Notwithstanding the termination of this Agreement, the PARTIES shall be required to carry out all provisions of this Agreement which contemplate performance subsequent to such termination, and termination shall not affect any liability or other obligation that accrued prior to the date of termination. In the event of termination the PARTIES agree that OWNER shall not be liable to pay to CONSULTANT the unearned balance or any portion thereof of the compensation provided for in this Agreement. b. Indel)endent Contractor: The CONSULTANT shall perform the services required hereunder in the CONSULTANT's own way as an independent contractor, and in pursuit of CONSULTANT's independent calling, and not as an employee of the OWNER. The CONSULTANT shall be under the control of the OWNER only as to the result to be accomplished and the personnel assigned to perform services. However, the CONSULTANT shall regularly confer with the OWNER's designated liaison and other authorized agents and representatives, as provided for in this Agreement. The CONSULTANT hereby warrants and represents to the OWNER that the services to be provided hereunder shall be performed in accordance with the standards customarily applied to an experienced and competent professional organization rendering the same or similar services, and that the individual signing this Agreement on behalf of the CONSULTANT has the full authority to bind the CONSULTANT to all of the terms, conditions, covenants and promises 13 contained in this Agreement. C. Subcontractors: The CONSULTANT may, at its sole cost and expense, employ such competent and qualified professionals, consultants and subcontractors as CONSULTANT deems necessary. d. Sriecific Enforcement: This Agreement may be specifically enforced by either PARTY. e. Assignment: Neither this Agreement nor any duties or obligations hereunder shall be assigned by the CONSULTANT without the prior written consent of the OWNER. f. Further Acts: Each PARTY agrees to execute and deliver all documents and perform all further acts that may be reasonably necessary to carry out the provisions of this Agreement. g. Amendment: This Agreement may be amended in writing by mutual agreement of the PARTIES. h. Protests: In the event the CONSULTANT considers a request by OWNER to perform a service the CONSULTANT believes to be outside the scope of this Agreement, or if the CONSULTANT considers any order or ruling of the OWNER's liaison to be unfair, it may immediately request that it be confirmed and delivered in writing. Within 10 days after receipt of such writing, and without delaying performance of such request, order or ruling, file a written protest with the OWNER stating clearly and in detail its objections and the reasons therefor. Except for such grounds of protest or objections as are made of record in the manner specified and within the time stated herein, the CONSULTANT hereby waives all grounds for protests or objections, and hereby agrees that as to all matters not included in such protests, the orders, instructions and decisions of the OWNER shall be final and conclusive. 14 i. Arbitration: Any dispute which may arise by and between the OWNER and the CONSULTANT, including the CONSULTANT's subcontractors, laborers, and suppliers, shall be submitted to binding arbitration. Arbitration shall be conducted by the Judicial Arbitration and Mediation Services, Inc., in accordance with its construction industry rules in effect at the time of the commencement of the arbitration proceeding, and as set forth in this Paragraph. Arbitration shall be conducted before a panel of three arbitrators, unless the PARTIES agree in writing to submit the matter before a single arbitrator. The arbitrators must decide each and every dispute in accordance with the laws of the State of California, and all other applicable paws. The arbitrators' decision and award are subject to judicial review for errors of fact or law in accordance with Section 1296 of the Code of Civil Procedure, by a Superior Court of competent venue and jurisdiction. Discovery may be conducted in the arbitration proceeding pursuant to Section 1283.05 of the Code of Civil Procedure. Unless the PARTIES stipulate to the contrary, prior to the appointment of the arbitrators, all disputes shall first be submitted to non-binding mediation, conducted by either the American Arbitration Association or Judicial Arbitration and Mediation Services, Inc., in accordance with their respective rules and procedures for such mediation. In any arbitration or litigation arising out of this Agreement, or the performance of any obligation under this Agreement, the arbitrators or the court in such arbitration or litigation shall award costs and expenses of arbitration or litigation, including mediation and arbitration fees and expenses, expert witness fees and attorneys' fees, to the prevailing ... Integration: This Agreement supersedes any and all previous agreements, either oral or written, between the PARTIES with respect to the OWNER's Facilities, and contains all of the covenants and agreements between the PARTIES with respect to the OWNER's Facilities. k. Severability: If any one or more of the terms, provisions, promises, covenants or 15 conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable, for any reason whatsoever, each and all of the remaining terms, provisions, promises, covenants and conditions of the Agreement shall be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. 1. Ownershii) of Wastewater: The OWNER shall retain title and ownership to all wastewater and treatment process byproducts. in. Ownership of Documents: All draft and final reports, budgets, plans, drawings, studies, maps, photographs, specifications, data, notes and all other documents of any kind or nature prepared or developed by CONSULTANT in connection with the performance of services hereunder shall become the sole property of the OWNER, and the CONSULTANT shall promptly deliver all such materials to the OWNER. At the OWNER's sole discretion, the CONSULTANT may be permitted to retain original documents and furnish reproductions. If the OWNER uses such documents for any purpose other than for which they were prepared without the CONSULTANT's prior written approval, the OWNER hereby waives any claims against the CONSULTANT and will hold CONSULTANT harmless from any claim or liability for injury or loss arising from the OWNER's unauthorized use. n. Financial Disclosure: If required by law, CONSULTANT shall annually prepare and file with OWNER a Conflict of Interest Statement. IN WITNESS WHEREOF, the PARTIES have executed this Agreement to be effective on the day first above written. OWNER. CITY OF BEAUMONT By /+ Mayor 16 CON- SULTANT; URBA-N ,GIC SERVICES, INC. By President 17 two';. AIR pal i� 1 •«N+F ��J{r► •rias+:@,,� �:: �9 •rias+:@,,� �:: Sent By: URBAN LOGIC; 9096762054 ; Mar -26-03 12:OOPM; Page 3 System Resource Report - Page: 1 FXMIT "C" ****************** SYSTEM SUMMARY Windows version: 4.10.2222 Computer Name: Unknown System BUS Type: ISA BIOS Name: American Megat rends BIOS Date: 09/06/99 BIOS Version: FR520 BIOS Version V00.01.27 09-06-99 Machine Type: IBM PC/AT Processor Vendor: Authenti.cAMD Processor Type: AMD-K6(tm) 3D processor Math Co -processor: Present. Registered Owner: Urban Logic Services Registered Company: ******************** IRQ SUMMARY****************** IRQ Usage Summary: 00 - System timer 01 - Standard 101/102 -Key or Microsoft Natural Keyboard 02 - Programmable interrupt controller 03 - Communications Port (COM2) 05 - ESS SOLO -1 PCI AudioDrive 05 - IRQ Holder for PCI Steering 06 - S'ta'ndard Floppy Disk Controller 07 - Printer Port (LPT1) 08 - System CMOS/real time clock 10 - SiS 7001 PCI to USB Open Host Controller 10 - zRQ Holder for PCI Steering 11 - TRQ Holder for PCI Steering 11 - LT Win Modem 12 - PS/2 Compatible Mouse Port 13 - Numeric data processor 14 - SiS 5513 Dual PCI IDE Controller 14 - Primary IDE controller (dual fifo) 15 - SiS 5513 Dual PCZ IDE Controller 15 - Secondary IDE controller (dual fifo) IO Pon SUMMARY ******************** I/O Port Usage Summary: OOOOh-OOOFh - Direct memory access controller 0020h -0021h - Programmable interrupt controller 0040h -0043h - System timer 0060h -0060h - Standard 101/102 -Key or Microsoft Natural.. Keyboard 0061h -0061h - System speaker 0064h --0064h -- Standard 101/102 -Key or Microsoft Natural Keyboard 00'10h -0071h - System CMOS/real time clock Sent By: URBAN LOGIC; 9096762054 ; Mar -26-03 12:01PM; System Resource Report - Page: 2 0080h -0090h - Direct memory access controller 0094h--009Fh - Direct memory access controller OOAOh-OOA1h - Programmable interrupt controller OOCOh-OODEh - Direct memory access controller OOFOh-OOFFh -- Numeric data processor 0170h -0177h - SiS 5513 Dual. PCI IDE Controller 0170h -0177h - Secondary IDE controller (dual fifo) 01F0h -01F7h - SiS 5513 Dual PCI IDE Controller 01FOh-01F7h - Primary IDE controller (dual fifo) 0200h -0203h - Gameport Joystick 0220h-022Fh - ESS S01,0-1.. DOS Emulation 0290h -0297h - Motherboard resources 02F8h-02FFh - Communications Port (COM2) 0330h -0331h - ESS SOLO -1 DOS Emulation 0376h -0376h - SiS 5513 Dual PCI IDE Controller 0376h -0376h - Secondary IDE controller (dual fifo) 0378h-037Fh - Printer Port (LPT1) 0388h-038Bh - ESS SOLO -1 DOS Emulation 03BOh-03BBh - SiS 530 03COh-03DFh - SiS 530 03FOh-03F5h - Standard Floppy Disk Controller 03F6h-03F6h - Primary IDE controller (dual fifo) 03F'6h-03F6h - SiS 5513 Dual PCI IDE Controller 03F'7h-03F7h - Motherboard resources 0480h-048Fh - Motherboard resources 04DOh-04D1h - Motherboard resources OCF8h-OCFFh - Motherboard resources 6000h -603Fh - Motherboard resources BOOOh--BFFFh - PCI standard PCI--to-PCI bridge BCOOh--BC7Fh - SiS 530 D200h-D203h - ESS SOLO -1 PCI AudioDrive D400h -D403h - ESS SOLO -1 PCI AudioDrive D600h-D6OFh - ESS SOLO -1 PCI AudioDrive D800h-D80Fh - ESS SOLO -1 PCI AudioDrive DAOOh-DA3Fh - ESS SOLO -1 PCI AudioDrive DCOOh-DCFFh - LT Win Modem DEOOh-DE07h - LT Win Modem FFAOh-FFAFh - SiS 5513 Dual PCI IDE Controller FFAOh-FFA7h - Primary IDE controller (dual fifo) FFASh-FFAFh - Secondary IDE controller (dual fifo) Page 4 ******************** UPPER MEMORY USAGE SUMMARY ******************** Memory Usage Summary: 00000000h--0009FFFFb - Systemboard extension for PnP BIOS OOOAOOOOh-OOOAFFFFh - SiS 530 OOOBOOOOh-OOOBFFFFh - SiS 530 00000OOOh-00OC7FFFh - SiS 530 Sent By: URBAN LOGIC; 9096762054 ; Mar -26-03 12:01PM; Page 5 System Resource Report - Page: 3 000DC000h-000DFFFFh - Motherboard resources OOOEOOOOh-OOOFFFFFh - System board extension for PnP BIOS 00100000h-03FFFFFFh - Motherboard resources E7E000OOh-E7EFFFFFh - PCI standard PCI -to -PCI bridge E7EF000Oh-E-7EFFFFFh - SiS 530 EBFFEFOOh-EBFFEFFFh - LT Win Modem EBFFFOOOh-EBFFFFFFh - SiS 7001 PCI to USB Open Host Controller ECOOOOOOh-EFFFFFFF'h - PCI standard host CPU bridge FECOOOOOh-FFCFFFFFh - PCX standard PCI -to -PCI bridge FF'OOOOOOh-FF7FFFFFh - SiS 530 FFEFOOOOh-FFEF7FFFh - Motherboard resources FFEF8000h-FFEF9FFFh -- Motherboard resources FFEFAOOOh-FFEFAFFFh - Motherboard resources FFEFCOOOh-FFEFFFFFh - Motherboard resources FFFEOOOOh-FFFFFFFFh - Motherboard resources ******************* DMA USAGE SUMMARY ******************** DMA. Channel Usage Summary: 01 - ESS SOLO -1 DOS Emulation 02 - Standard Floppy Disk Controller 04 - Direct memory access controller ******************** MEMORY SUMMARY ******************** 640 KB Total Conventional Memory 60840 KB Total Extended Memory DISK DRIVE INFO xW*W************ A: Floppy Drive, 3.5" 1.44M 80 Cylinders 2 Heads 512 Bytes/Sector 18 Sectors/Track C: Fixed Disk 13328912K Total 11457712K Free 1661 Cylinders 255 Heads 512 Bytes/Sector 63 Sectors/Track Q: CD-ROM Drive ******************** SYSTEM DEVICE INFO Class: Tape drives Device: CONNER QIC-80 No resources used. Class: Universal Serial Bus controllers Device: USB Root Hub Sent By: URBAN LOGIC; 9096762054 ; Mar -26-03 12:01PM; System Resource Report - Page: 4 No resources used. Class: Universal Serial Bus controllers Device: SiS 7001 PCI to USB Open Host Controller Resources: IRQ: 10 MEM: EBFFFOOOh-EBFFFFFFh Device drivers: c:\windows\system32\drivers\openhci.sys Nile size: 23632 bytes. Manufacturer: Microsoft Corporation File version: 4.10.2222 Copyright: Copyright Q Microsoft Corp. 1.981-1999 c:\window5\system32\drivers\usbd.sys File size: 18912 bytes. Manufacturer: Microsoft Corporation File version: 4.10.2222 Copyright: Copyright (C) Microsoft Corp. 1981-1999 c:\windows\system32\drivers\usbhub.sys File size: 35680 bytes. Manufacturer: Microsoft Corporation File version: 4.10.2222 Copyright: Copyright (C) Microsoft Corp. 1981-1999 c:\windows\SYSTEM\usbui.dll File size: 16384 bytes. Manufacturer: Microsoft Corporation File version: 4.10.2222 Copyright: Copyright (C) Microsoft Corp. 1992-1998 Class: Ports (COM & LPT) Device: Printer Port (L.PT1) Resources: IRQ: 07 I/0: 0378h-037Fh Device drivers: c:\wind.ows\SYSTEM\lpt.vxd File size: 35572 bytes. Manufacturer: Microsoft File version: 4.10.1998 Copyright: Copyright (C) Corporation Microsoft Corp. 1992-1998 Class: Ports (COM & LPT) Device: Communications Port (COM2) Resources: IRQ: 03 I/0: 02F8h-02FFh Device drivers: c:\windows\SYSTEM\serial.vxd Page 6 Sent By: URBAN LOGIC; 9096762054 ; Mar -26-03 12:01PM; System Resource Report - Page: 5 File size: 18625 bytes. Manufacturer: Microsoft Corporation File version: 4.10.2222 Copyright: Copyright (C) Microsoft Corp. 1992-1999 c:\windows\SYSTEM\serialui.dil File size: 12048 bytes. Manufacturer: Microsoft Corporation File version: 4.10.1998 Copyright: Copyright (C) Microsoft Corp. 1993-1998 Class: Mouse Device: PS/2 Compatible Mouse Port Resources: IRQ: 12 Device drivers: c:\wi.ndows\SYSTEM\mouse.dry File size: 7712 bytes. Manufacturer: Microsoft Corporation File version: 9.01.0.000 Copyright: Copyright ® Microsoft Corp. 1990-1995 c: \windows\ SYSTENVasmou se. vxd File size: 15809 bytes. Manufacturer: Microsoft Corporation File version: 4.10.1998 Copyright.: Copyright (C) Microsoft Corp. 1988-1998 Class: Hard disk controllers Device: Secondary IDE controller (dual fifo) Resources: IRQ: 15 I/O: 0170h -0177h I/0: 0376h -0376h 1/0: FFA8h-FFAFh Class: Hard disk controllers Device: Primary IDE controller (dual fifo) Resources: IRQ: 14 I/0: 01FOh-01F7h X/0: 03F6h-03F6h I/0: FFAOh-FFA7h Class: Hard disk controllers Device: SiS 5513 Dual PCI IDE Controller Resources: IRQ: 14 IRQ: 15 I/0: 01F0h--01F7h Page 7 Sent By: URBAN LOGIC; 9096762054 ; System Resource Report - Page: 6 I/0: 03F6h-03F6h I/0: 0170h -0177h I/0: 0376h -03'76h I/0: FFAOh-FFAFh Class: Floppy disk controllers Device: Standard Floppy Disk Controller Resources: IRQ: 06 I/0: 03FOh-03F5h DMA: 02 Class: Display adapters Device: SiS 530 Resources: I/0: 03BOh-03BBh I/0: 03COh-03DFh I/0: BCOOh-BC7Fh MEM: OOOAOOOOh-000AFFFFh MEM: 000B0000h-000BFFFFh MEM: FF0000OOh-FF7FFFFFh MEM: E7EF000Oh-E7EFFFFFh MEM: 000000Q0h-000C7FFFh Device drivers: c:\windows\SYSTEM\9is530v.dry File size: 28800 bytes. Manufacturer: Silicon Integrated File version: 4.11.01.1060 Copyright: Copyright (C) Silicon c:\wi.ndows\SYSTEM\sis530v.vxd File size: 30829 bytes. Manufacturer: Silicon Integrated File version: 4.11.01.1060 Copyright: Copyright (C) Silicon c:\wi.ndows\SYSTEM\si.s530v.i.nf File size: 4931 bytes. No version information. c:\windows\SYSTEM\dd530.dll File size: 10304 bytes. Manufacturer: S.A.J.A con Integrated File version: 4.11.01.1060 Copyright: Copyright(C) Silicon c:\windows\SYS'T'EM\dd530 32.dll File size: 59904 bytes. Manufacturer: Silicon Integrated File version: 4.11.01.1060 Copyright: Copyright(C) Silicon c:\windows\INF\sis530v.inf Mar -26-03 12:02PM; Page A Systems Corporation Integrated Systems Corp. 1996-1999 Systems Corporation Integrated Systems Corp. 1996-1999 Systems Corp. Integrated System Corp. 1996-1999 Systems Corp. Integrated System Corp. 1996-1999 Sent Bv: URBAN LOGIC; 9096762054 ; System Resource Report - Page: 7 File size: 4931 bytes. No version information. C:\oemrom.bin File size: 32766 bytes. No version information. Class: CDROM Device: ATAPI CDROM No resources used. Class: Monitors Device: Default Monitor No resources used. Class: Modem Device: i.T Wi,n Modem Resources: IRQ: 11 1/0: DEOOh--DE07h I/0: DCOOh-DCFFh MEM: EBF "F:F00b-ERFFEFFFh Device drivers: c:\windows\SYSTEM\ltmodem.vxd File size: 56492 bytes. Manufacturer: LT File version: 5.30 Copyright: Copyright m LT 1997 c: \wiridows\SYSTEM\1tc.om. vxd File size: 4756 bytes. Manufacturer: LT File version: 5.30 Copyright: Copyright © LT 1997 c:\windows\SYSTEM\ltvcd.vxd File size: 10724 bytes. Manufacturer: LT File version: 5.30 Copyright: Copyright ® LT 1997 Class: Modem Device: Standard 56000 bps V90 Modem No resources used. Class: Modem Device: LT Win Modem #2 No resources used. Device drivers: c:\windows\S'YSTEM\ltmodem.vxd File size: 56492 bytes. Mar -26-03 12:02PM; Page 9/14 Sent By: URBAN LOGIC; 9096762054 ; System Resource Report - Page: 8 Manufacturer: LT File version: 5.30 Copyright: Copyright 0 LT 1997 c:\windows\SYSTEM\ltcom.vxd File size: 4756 bytes. Manufacturer: LT File version: 5.30 Copyright: Copyright 0 LT 1997 c:\windows\SYSTEM\1Lvcd.vxd File size: 10724 bytes. Manufacturer: LT File version: 5.30 Copyright: Copyright © LT 1997 Mar -26-03 12:02PM; Page 10/14 Class: System devices Device: 10 read data port for ISA Plug and Play enumerator. No resources used. Class: System devices Device: PCI standard PCT -to -PCI bridge Resources: I/0: BOOOh-BFFFh MEM: E7EO000Oh-E7EFFFFFh MEM: FECOOOOOh-FFCFFFFFh Class: System devices Device: IRQ Holder for PCI Steering Resources: IRQ: 05 Class: System devices Device: IRQ Holder for PCI Steering Resources: IRQ: 11 Class: System devices Device: IRQ Holder for PCI Steering Resources: IRQ: 10 Class: System devices Device: SIS PMU device No resources used. Class: System devices Device: SIS PCT to ISA bridge No resources used. Device drivers: Sent By: URBAN LOGIC; 9096762054 ; System Resource Report - Page: 9 Mar -26-03 12:02PM; Page 11/14 c:\windows\SYSTEM\isapnp.vxd File size: 21281 bytes. Manufacturer: Microsoft Corporation File version: 4.10.1998 Copyright: Copyright (C) Microsoft Corp. 1988-1998 Class: System devices Device: PCI standard host CPU bridge Resources: MEM: ECOOOOOOh-EFFFFFFFh Class: System devices Device: Motherboard resources Resources: I/0: 04DOh-04D1h I/0: OCF8h-OCFFh Z/0: 03F7h-03F7.h I/0: 6000h-603Fh I/0: 0290h -0297h I/O: 0480h-048Fh MEM: FFFEOOOOh-FFFFFFFFh MEM: 00100000h-03FFFFFFh MEM: OOODCOOOh-OOODFFFFh MEM: FFEF0000h--FFEF7FFFh MEM: FFEF80OOh-FFEF9FFFh MEM: FFEFAOOOh-FFEFAFE'Fh MEM: FFEFCOOOh-FFEFFFFFh Class: System devices Device: PCI bus No resources used. Device drivers: c:\windows\SYSTEM\pci.vxd File size: 359 bytes. Manufacturer: Microsoft Corporation File version: 4.10.2222 Copyright: Copyright (C) Microsoft Corp. 1988-1999 c:\windows\SYSTEM\pcimp.pci File size: 16208 bytes. Manufacturer: Microsoft Corporation File version: 4.10.2222 Copyright: Copyright (C) Microsoft Corp. 1995-1998 Class: System devices Device: Numeric data processor Resources: IRQ: 13 I/0: 00F0h-00FFh sent By: UHLAN LUGIU; 9096762054 ; Mar -26-03 12:02PM; Page 12/14 System Resource Report Class: System devices Device: System speaker Resources: I/0: 0061h --0061h - Page: 10 Class: System devices Device: System CMOS/real time clock Resources: IRQ: 08 I/0: 0070h -0071h Class: System devices Device: System timer Resources: IRQ: 00 I/0: 0040h -0043h Class: System devices Device: Direct memory access controller Resources: I/0: 00OOh-000Fh I/0: 0080h -0090h I/0: 0094h-009Fh I/0: OOCOh-OODEh DMA: 04 Class: System devices Device: Programmable interrupt controller Resources: IRQ: 02 I/0: 0020h -0021h I/0: OO,AOh-OOA1h Class: System devices Device: System board extension for PnP BIOS Resources: MEM: OOOOOOOOh-0009FFFFh MEM: OOOEOOOOh-OOOFFFFFh Class: System devices Device: Advanced Power Management support No resources used. Class: System devices Device: System board No resources used. Sent By: URBAN LOGIC; 9096762054 ; System Resource Report - Page: 1.1 Class: System devices Device: Plug and Play BIOS No resources used. Mar -26-03 12:03PM; Page 13/14 Class: System devices Device: Plug and Play Software Device Enumer_ator.. No resources used. Class: System devices Device: Processor support No resources used. Class: Keyboard Device: Standard 101/102 -Key or Microsoft Natural Keyboard Resources: IRQ: 01 I/0: 0060h -0060h 1/0: 0064h -0064h Class: Network adapters Device: AOL Dial -Up Adapter No resources used. Class: Network adapters Device: AOL Adapter No resources used. Class: Network adapters Device: Microsoft Virtual Private Networking Adapter No resources used. Class: Network adapters Device: DialUp Adapter #2 (VPN Support) No resources used. Class: Network adapters Device: Dial -Up Adapter No resources used. Class: Disk drives Device: GENERIC IDE No resources used. Class: Disk drives Device: GENERIC NEC No resources used. DISK TYPE47 FLOPPY DISK Class: Sound, video and game controllers Sent By: URBAN LOGIC; 9096762054 ; Mar -26-03 12:03PM; Page 14/14 Exhibit D URBAN LOGIA' SERVICEs HOURLY RATE SCHEDULE Professional Services: OM Atiop Principal Senior Associate Construction Manager Surveyor Associate Two -Man Survey Crew Staff Engineer Construction inspector Technician Executive Secretary Secretary Direct Services and Reimbursement Costs: Professional Sub -Consultant Services - Actual cost plus 15% Outside Document Reproduction and Copying - Actual cost plus 15% In-house Reproduction and Copying - $0.10 per copy Blue Prints - $3.00 per sheet Vehicle Mileage - $0.32 per mile Hourly Rate $125.00 90.00 90.00 85.00 85.00 140.00 70.00 70.00 70.00 45.00 40.00 Consultation in connection with litigation and court testimony will be quoted separately on an individual basis. The above rates remain in effect through December 31, 2001. URBAN LOGIC SERVICES April, 1995 Professional Services Agreement: Operation and Maintenance of City of Beaumont's Wastewater Treatment Facility and Sewer System February, 2002 Professional Services Agreement: Operation and Maintenance of City of Beaumont's Wastewater Treatment Facility and Sewer System (Renewal) October 2003 Aquarion Service Company assumed Urban Logic Services and the Agreement in place with the City of Beaumont October 2, 2003 Mr. Alan C. Kapanic as City Manager City of Beaumont 550 East Sixth Street Beaumont, CA 92223 Subiect: Purdue of All of the Issued and 4 Services, Inc- ("ULS") by Aquarion Dear b& Kapanicss, There is currently a contract in +existence (the "Agrecm dated February 19, 2002, for the o peri.. and Rechmmdon Plant and collection syst A copy f t ULS' current shareholders (�Amrs. Moor7ani, Egger r finalizing the sale of all of ULS's issued and outstandh requintents ofthis transaction, Aquarion has requests of certain facts concerning the Agreement and shares. Please note that this you, 9etvjGr3 are currentlyacgtusrtion will nott r result i Provided, and to which you i tg C'-apital Shares of Urban Logic CorrrPILay ("Aquarion-) ') between ULS and the City ofBeaumom, intenance of the Beaumont Wastewater A8mement is attached hereto. I Dillon) are now Ing'aSed in the process of capit;d TARM � that CLS obtamon . As part of the �nsent to the proposed (a) oonfirnaation sale ofULS I capital t change in the nature and Manner in which accustomed. consent to they s'-40'% below you are hereby confirming a following facts and acknowled ' in ULS ownership and control related to the Smgyour mem: 2. 3. The Agreement is in full force and effect and, to ", aoum"riRims or defaults existing under th of the Agreement =plies December 1, 2007, a anniversary date upon satisfactory delivery of s The Agreement wi11 not be terminated prior to t1 of ULS' capital shares to Aquarion, and consent and ooatrol of ULS to the extsmt that such conn There have been made no pre -payments to monies owed to ULS as of this date, with the Of 536,302.77. 43517 Ridge Park Drive, ,suite 200 • r 7i?4: (909) 6 76-194 4 • Fitz: best ofyour knowledge, there are no off- veement against UIS. The currert term renews for a five year extension on each ices in the Prior year. e7tPft11dOA of its term as a result of the We hereby given to the change of ownership t is required under the Agreement. udder the Agreement, and there are no tion of current rec4ivables in the amount !a, California 92590 676-2034 OCT -08-2003 ii:09 9096762054 95% P. 0a Mr- Also C Kapanicas October 2, 2003 Page 2 Plea -w acknowledge your agreement with the above by to the undersigned. Very truly yours, URBAN LOGIC SERVICES, INC. .cam►' Deepak 1400rj* P.E. Principal The fir'I statements are true and correct as of CQ pa iprs ing a copy of this letter and returning it 2003 ocT-0e-2003 ,:to � 9096?62054 95% P_nd 10/22/04 AMENDMENT TO AGREEMENT FOR SERVICES BY INDEPENDENT CONTRACTOR THIS AMENDMENT is made and effective this day of 92005, by and between the CITY OF BEAUMONT ("OWNER") and Urban Logic Services, a wholly owned subsidiary of Aquarion Services Company_ ("CONSULTANT"). The OWNER and the CONSULTANT are sometimes referred to herein as the "Party" or, collectively, "Parties"). RECITALS A. On February 19 , _2002_, the OWNER and the CONSULTANT entered into that certain agreement entitled "_Professional Services Agreement: Operation and Maintenance of City of Beaumont's Wastewater Treatment Facility and Sewer System_" (the "AGREEMENT"). B. Pursuant to the AGREEMENT, the CONSULTANT renders certain professional services to the OWNER, as more specifically described in the AGREEMENT. C. Since the execution of the AGREEMENT, the Parties have determined that it is necessary to supplement the AGREEMENT to implement certain programs and procedures to better protect and enhance public health, safety and security. AGREEMENT NOW, THEREFORE, the Parties hereby agree as follows: 1. Drug-free Workplace Certification_. By signing this AMENDMENT, the CONSULTANT hereby certifies under penalty of perjury under the laws of the State of California that the CONSULTANT will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug-free workplace. 2. Drug and Alcohol Testing; Policy. The CONSULTANT agrees to establish an anti-drug use and alcohol misuse program consistent with the requirements of this Section. The CONSULTANT's anti-drug use and alcohol misuse program shall include the following: a. The adoption, and enforcement, of a policy on prohibited drug use and alcohol misuse in the workplace, including the consequences associated with prohibited drug use and alcohol misuse. The CONSULTANT shall disseminate the policy statement to its employees; b. An education and training program in which employees and their supervisors shall receive at least 60 minutes of training on the effects and consequences of prohibited drug use on personal health, safety, and work environment, and on the signs and symptoms that may indicate prohibited drug use and alcohol misuse. In addition, supervisors shall receive an additional 60 minutes of training on the physical, behavioral and performance indicators of probable drug use and alcohol misuse; A testing program which meets the requirements of Section 3 below; and d. Procedures for referring an employee who has a verified positive drug test result or an alcohol concentration of 0.04 or greater to a substance abuse professional. 3. Drug and Alcohol Testing. a. Drug Testing_ The CONSULTANT shall establish a program that provides testing for prohibited drugs in the following circumstances: pre-employment, post -accident, reasonable suspicion, random and return to duty/follow-up. When administering a drug test, the CONSULTANT agrees to ensure that the following drugs are tested for: marijuana, cocaine, opiates, amphetamines, and phencyclidine. b. Alcohol Testing: The CONSULTANT shall establish a program that provides for testing of alcohol in the following circumstances: post -accident, reasonable suspicion, random and return to duty/follow-up. The CONSULTANT shall prohibit an employee, while having an alcohol concentration of 0.04 or greater, from performing or continuing to perform a safety -sensitive function. 4. Background Investigations. CONSULTANT acknowledges that certain of CONSULTANT's employees perform services that have the potential for endangering the health and safety of members of the general public, and have unrestricted access to sensitive OWNER operations and facilities which, if improperly operated or maintained, could result in personal injury or death to themselves, co-workers and the public. Therefore, the CONSULTANT hereby agrees, at its sole cost and expense, to develop and implement an employee security system and program that includes, but is not limited to, the following: a. A personal history statement; b. Reference checks; C. Photographs; d. Fingerprinting; e. Background investigation, including information from the California Department of Justice and the Department of Motor Vehicles. 5. Compliance with Law; Indemnification. The CONSULTANT hereby agrees to comply with federal and state law, rules and regulations governing the subject matter of this AMENDMENT to the AGREEMENT. In the event the CONSULTANT violates any such law, 2 rule or regulation, the CONSULTANT shall indemnify and hold the OWNER free and harmless from any liability of any kind or nature that may result from such violation, including claims and actions brought by third parties. IN WITNESS WHEREOF, the Parties have executed this AMENDMENT on the dates indicated below, to be effective on the date first above written. CITY OF BEAUMONT Dated: 1 abo5 (2--- y Mayor/ Dated: 3 tU By. Title: 3 C 41� *@ ru Bea J2 of r- • X 50 E, c�rlt titre Ir 6c'tunttvnr. CA �) � Postage $ FAX ��� 7(� �� r. Certified Fee Entrtil: t irylttrll(st'tti.bt'tu o Return Receipt Fee (Endorsement Required) Postmark lV4b'W,('1.11Plrtttl101i O RestrictedDelive Here Mr. Robert Ashfield Vice President Aq�on Operating Services (AOS ) 1707 Averill Avenue San Pedro, CA 907732 C3 (Endorsement Required) M quired) Cc Total Postage &Fees w a C3 r` Reference: Administrative Civil Liability Compliance ACL and Notice of Termination of Services ( # R8-2009-0068) Dear Mr. Ashfield: You were sent a demand notice dated December 1, 2009 fo Administrative Civil Liabilityin the r reimbursement dollars mount of $99,000 rsement of )that was levied by the Santa Ana Re ional Water( Ninety rune thousand for numerous spill associated with g required to remit the above the Desert Qin' Control Board amount to the Ci Knolls Lii} Station. To date, the Ci City no were later than December 10U 2010. boldin �' has not received the required penal g you in breach of AOS contract withty O�t• Therefore we are 2009 letter is enclosed for your reference. the City. A copy of the December 1, This is to also inform you that effective July 31, 2010 Operation and maintenance of City's Your services for the wastewater treatment plant are terminated, sewerage collection systemand the Please make arrangements with the equipment, related reports and h t City staff to hand over 2010. Shouldave documents in your staff's the inventory of Assistant Director of Public Workusest ons please contact possession by July 26, h'li• Kishen Prathivadi, 769-8520. Very City Managt December 1, 2009 City of Beaninmit 550 E. wh Sirecr Ream►row, t A 9221 � (.951 ) 76.9-S510 FAX (950 769-S516 E►►rail: �itylr�►lle�'�i.h�amuont.��►.rr� www. i.G���rurrro►rt.�-�r.rrs Mr Robert Ashfield Aquarion Operating Services 1707 S. Averill Avenue San Pedro, CA 90732 Dear Mr Ashfield; Attached is the Administrative Civil Liability Complaint received from the Regional Water Quality Control Board. The Board alleges that the City of Beaumont violated State Water Resources Control Board Order No 2006-0003-DWQ by discharging untreated wastewater (sewage) to waters of the State, for which a penalty has been imposed. This is attributed to the various spills that occurred between March and September 2009. Details of the spills have been addressed in the attachment. As per the agreement between the City of Beaumont and Aquarion Operating Services (AOS), AOS is required to strictly comply with the requirements of the NPDES Permit, and to strictly comply with all other applicable federal, state and county statutes, ordinances and regulations. The City holds AOS responsible for this liability as per contract. The City requests AOS to reimburse an amount of ninety nine thousand nine hundred dollars ($99,900) no later than December 10, 2009. Very y' Cl F B UMO Ian Kapanfen's - City Manager Encl: ACL complaint ACORVI. CERTIFICA'� c OF LIABILITY INSURANCE page 1 of 2 12/07/2005 PRODUCER 877-945-7378 Willis North America, Inc. - Regional Cert Center 26 Century Blvd. P. 0. Box 305191 Nashville, TN 372305191 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC# INSURED Aquarion Services Company 15 Dartmouth Drive - Suite 300 Auburn, NH 03032 INSURERA: Travelers Property Casualty Insurance Com INSURERB: Travelers Indemnity Company _ 36161-001 25658-002 INSURER C: INSURER D: INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADD'L POLICY EFFECTIVE I POLICY EXPIRATION LTR INSRD TYPEOFINSURANCE I POLICYNUMBER DATEDATEIMM/DD1YY1LIMITS A GENERAL LIABILITY TJEXGL18SK739505 12/1/2005 12/1/2006 EACHOCCURRENCE 700,000 XCOMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED PREMISES Ea occurencel _$ I $ 300,000 MED EXP (Anyone person) $ CLAIMS MADE FxI OCCUR X $300, 000 SIR PERSONAL&ADV INJURY $ 700,000 GENERALAGGREGATE $ 2,000,000 PRODUCTS - COMP/OP AGG $ 700,000 GEN'LAGGREGATELIMIT APPLIES PER: X POLICY PEO I LOC AUTOMOBILE LIABILITY � ANY AUTO COMBINED SINGLE LIMIT (Ea accident) $ BODILY INJURY (Per person) $ ALLOWNEDAUTOS SCHEDULED AUTOS HIRED AUTOS NON-OWNEDAUTOS BODILY INJURY (Per accident) $ PROPERTYDAMAGE (Per accident) $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO — OTHER THAN EA ACC $ AUTOONLY: AGG $ EXCESS LIABILITY EACHOCCURRENCE $ AGGREGATE $ OCCUR CLAIMS MADE $ DEDUCTIBLE $ RETENTION $ B WORKERS COMPENSATION AND TC2HUB185K741405 12/1/2005 12/1/2006 EMPLOYERS' LIABILITY X TORY LIMIT OEH A ANY PROPRIETOR/PARTNER/EXECUTIVE TRJUB1002A26805 12/1/2005 12/1/2006 E.L. EACH ACCIDENT $ 11000,000 OFFICER/MEMBER EXCLUDED? If yes, describe under E.L. DISEASE - EA EMPLOYEE $ 1,000,000 SPECIAL PROVISIONSbeloW E.L. DISEASE -POLICY LIMIT L$ 1,000,000 OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS CERTIFICATE HOLDER CANCELLATION City of Beaumont 550 E. 6th Street Beaumont, CA 92223 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 3 0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. n AUTHORIZED RtPRESENTASWE /.r ACORD 25 (2001/08) Co11:1480378 Tp1:439174 Cert:6,-66655 a, ©ACORDCORPORATION 1988 Page 2 of 2 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25 (2001/08) C011:1480378 Tp1:439174 Cert:6536655 Linda S. Adams seartaryfor Errvironmenral Prmection California Regional Water Qu. , Santa Ana Regic I 0 r j 3737 Main Street, Suite 500, Riverside, Calif -r Phone (95 t) 7824130 • FAX (951) 781-6289 9 Cent Fee www.waterboards.ca.gov/sant: d M (Eraommew April 15, 2010 CEF RETURN RI Alan C. Kapanicas, City Manager City of Beaumont 550 E. fish Street Beaumont, CA 92223 C3 t " -mno" q&rv4 r-1 Tomt Puateys a Fees CITY OF BEAUMONT - ADMINISTRATIVE CIViL LIABILITY (ACL) COMPLAINT NO. 118-2010-0007 Dear Mr. Kapanicas: Enclosed is a certified copy of Administrative Civil Liability Complaint No. R8-2010-0007 (hereinafter the "Complaint"). The Complaint alleges that the City of Beaumont violated State Water Resources Control Board Order No. 2006-0003-DWQ by discharging untreated wastewater (sewage) to waters of the State, for which a penalty may be imposed under Section 13350 of the California Water Code. The Complaint proposes that administrative civil liability in the amount of one hundred and eleven thousand dollars ($111,000) be imposed as authorized under Water Code Section 13350(e)(2). Also enclosed are a Waiver Form and a Hearing Procedure that sets forth important requirements and deadlines for participation in the hearing. Additionally, a Fact Sheet describing the Complaint process is available at: http://www.waterboards.ca.gov/santaana/public notices/enforcement actions shtmi The Fact Sheet describes the Complaint process and explains what .the City of Beaumont can expect and its obligations as the process proceeds. If preferred, a hard copy of the Fact Sheet may be obtained by contacting Stephen D. Mayville at (951) 782-4992. Please read each document carefully. This Complaint may result in the issuance of an order by the Regional Board requiring that you Day a aenaity. If necessary, a public hearing on this matter will be scheduled for the Regional Board meeting on June 10, 2010. The staff report regarding this Complaint and the meeting agenda will be mailed to you not less than 10 days prior to the hearing. Pursuant to California Water Code Section 13323, the City of Beaumont has the option to waive its right to a hearing. Should the City of Beaumont waive its right to a hearing and pay the proposed assessment, the Regional Board may not hold a public hearing on this California Environmental Protection Agency Recxkd P-ptr ACL No. 138-2010-0007 Page 2 oft April 15, 2010 Alan Kapanicas, City of Beaumont - matter. If the City of Beaumont chooses to waive its right to a hearing, please sign and submit the enclosed Waiver Form with a check for one hundred and eleven thousand dollars ($111,000) made payable to the State Water Resources Control Board-WDPF. The Waiver Form and check should be sent to the Regional Board office in the enclosed pre-printed envelope by April 29, 2010. If the City of Beaumont does not wish to waive As right to a hearing, requesting a pre - hearing meeting, as set forth in the Hearing Procedure is recommended. Should you wish to schedule a pre -hearing meeting, please contact me (951-782-3286) prior to April 29, 2010. If you have any questions about the Complaint or the enclosed documents, please contact Stephen D. Mayville, Chief of Enforcement, at (951) 782-4992 sma ille(Mwaterboards.ca ov). All legal questions should be directed to Reed Sato, Director, Office of Enforcement, at (916) 341-5889 (rsatoAwaterboards ca oov). . Sincerely, Kurt V. Berchtold Assistant Executive Officer Regional Board Prosecution Team Enclosures: Complaint No. R8-2010-0007, Waiver Form, Hearing Procedure, and Preprinted Envelope cc with a copy of the complaint (by electronic mail only): Board Members Executive Officer (Regional Board Advisory Team) State Water Resources Control Board, Office of Chief Counsel — David Rice (Regional Board Advisory Team Attorney) State Water Resources Control Board, Division of Water Quality — Damn Polhemus State Water Resources Control Board, Office of Enforcement — Reed Sato (Regional Board Prosecution Team Attorney) U.S. Environmental Protection Agency, Region 9 (WTR-7) — Ken Greenberg California Environmental Protection Agency �ir�er Recycled Paper STATE OF CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD SANTA ANA REGION In the Matter of: City of Beaumont Complaint No. R8-2010-0007 550 E. 6 Street for Beaumont, CA 92223 } Administrative Civil Liability Attn: Alan C. Kapanicas YOU ARE HEREBY GIVEN NOTICE THAT: 1. The City of Beaumont (hereinafter "the City" or "Beaumont") is alleged to have violated provisions of law for which the California Regional Water Quality Control Board, Santa Ana Region (hereinafter "Regional Board"), may impose administrative civil liability under California Water Code (hereinafter "CWC") §13350. 2. A hearing concerning this Complaint will be held before the Regional Board within ninety days of the date of issuance of this Complaint, unless pursuant to CWC Section 13323, Beaumont waives its right to a haring. The waiver procedures are specified in the attached Waiver Form. The hearing in this matter is scheduled for the Regional Board's regular meeting on April 30, 2010, at the City Council Chambers, 25541 Barton Road, City of Loma Linda, California. Beaumont, or its designated representative, will have an opportunity to appear and be heard, and to contest the allegations in this Complaint and the imposition of civil liability by the Regional Board. An agenda for the meeting and the staff report relating to this item will be mailed to you not less than 10 days prior to the hearing. date. 3. If a hearing is held on this matter, the Regional Board will consider whether to affirm, reject, or modify the proposed administrative civil liability or whether to refer the matter to the Attorney General for recovery of judicial civil liability. If this matter proceeds to hearing, the Prosecution Team reserves the right to seek an increase in the civil liability amount to cover the costs of enforcement incurred subsequent to the issuance of this Complaint through hearing. THE COMPLAINT IS BASED ON THE FOLLOWING FACTORS: 4. Beaumont owns and operates one hundred thirty five (135) miles of gravity sanitary sewer main and fifteen (15) mites of sanitary sewer force main within its service boundary. The operation and maintenance of sanitary sewer systems are regulated under the State's General Waste Discharge Requirements for Sanitary Sewer -1- City of Beaumont Page 2 of 8 April 15, 2010 ACL No. R8-2010-0007 Systems, Water Quality Order No. 2006-0003 (hereinafter "SSO Order"). On November 2, 2006, Beaumont obtained coverage under the SSO Order. 5. Beaumont's sanitary sewer system normally contains wastewater from residential, commercial and industrial establishments. Untreated sanitary wastewater (sewage) generally contains high levels of bacteria, metals, nutrients and other pollutants. 6. Beginning on December 18 and continuing into December 19, 2009, an estimated 403,000 gallons of raw sewage were spilled from the Marshall Creek Lift Station to an un -named tributary to San Timoteo Creek. Approximately 300 gallons were recovered and returned to the sanitary sewer system. This resulted in an estimated 402,700 gallons of sewage being discharged to an un -named ephemeral drainage course tributary to San Timoteo Creek, a water of the United States. Subsequently the City submitted revised estimates of the discharge volume which indicated that the total discharge volume was approximately 200,000 gallons. The initial discharge volume estimates were based on the actual difference between the average discharge volume for the previous weeks and the week of the spill incident. Subsequent estimates were based on theoretical pump and wet -well capacities, pumping times and pump cycles, which could not be independently verified. As such, the initial estimates have been used for purposes of this Complaint. Most of the discharged sewage percolated into the soil within the un -named tributary. 7. The following information is based on investigations conducted by Regional Board staff and information provided by the City and its contractors operating the sanitary sewer system and the sewage treatment plant. a. The City's sanitary sewer system and its sewage treatment plant are operated by Aquarion Operating Services (hereinafter "AOS", a wholly- owned subsidiary of United Water) under contract with the City. According to information provided by the City, AOS is responsible for operation and maintenance of the City's sewage treatment plant and the sanitary sewer collection system, including the lift stations. However, AOS has indicated that it had not accepted full responsibility for operation and maintenance of some of the lift stations and sewage collection systems. The City is responsible for repair and replacement of equipment, such as the pumps and the electrical systems. b. Marshall Creek lift station is a sewage pump station for pumping sewage into the force main sewer system for delivery to the sewage treatment plant. This lift station has a level alarm which sends an alarm to the SCADA system (Supervisory Control and Data Acquisition, an electronic monitoring system) located at the sewage treatment plant when the level of wastewater in the wet well exceeds a preset level. The SCADA system also receives continuous information regarding the wastewater levels in the wet wells from remote locations, such as the Marshall Creek lift station. The City's SCADA system has an operator screen and an alarm City of Beaumont Page 3 of 8 April 15, 2010 ACL No. R8-2010-0007 screen. Generally a level alarm would be displayed in both systems and is an indication of a non-functioning pump or other malfunctions at the lift station. c. The Marshall Creek lift station was equipped with dual pumps and dual power supply sources. When the primary operating system fails, the Ifft station should automatically switch to the alternate (standby) system. On December 18, 2009, both pumps at the Marshall Creek lift station failed either due to an electrical failure or due to mechanical problems with the pumps. d. According to information provided by the City, both pumps at the lift station were tested and were found to be functional prior to the December 18, incident. However, the City stated that the spare pump was known to have problems, but functioned properly in the test mode. On December 18, 2009, the operating pump failed due to a seal problem. When this happened, the system failed to switch to the standby pump. Information provided by AOS indicated that the second pump may have failed on December 18, 2009 due to preexisting mechanical problems; the City claims that the failure was due to an electrical failure. In any case, on December 18, 2009, both pumps failed, both electrical systems failed, and the alarm sensor switch failed. These failures at the lift station triggered an alarm at the SCADA alarm screen. However, the SCADA operator screen did not register an alarm because of the malfunctioning sensor switch. Had the operator at the SCADA operator station been properly trained, high wastewater levels in the wet well indicated on the operator screen should have triggered a series of further actions, including checking the alarm screen to determine the source of high wastewater levels in the wet well. The operators at the sewage treatment plant were not properly trained to recognize and to take further steps to respond to the high wastewater levels. e. The overflow from the wet well at the Marshall Creek lift station continued for approximately 18 hours until an employee of an electrical contractor noticed it and reported it to the sewage treatment plant operators on December 19, 2009. Once the sewage treatment plant was noted of the incident, AOS responded within 45 minutes and the cleanup crew (another subcontractor) arrived approximately 1.5 hours later. AOS was able to start the standby pump and stop the overflow of sewage. By the time the cleanup contractor arrived, most of the sewage that overflowed had percolated into the dry creek bed and they recovered approximately 300 gallons from a total estimated discharge of 403,000 gallons. f. Section D.8 of the SSO Order requires the City to properly manage, operate, and maintain all parts of the sanitary sewer system owned or operated by the City to ensure that the system operators (including City of Beaumont Page 4 of 8 ACL No. R8-2010-0007 April 15, 2010 employees, contractors, or other agents) are adequately trained and possess adequate knowledge, skills, and abilities. Information gathered during the investigation of this spill incident and other recent spill incidents within the City indicates that the City failed to properly manage, operate, and maintain all parts of the sanitary sewer system owned by the City. It also failed to ensure that its contractors were adequately trained and possess adequate knowledge, skills, and abilities. g. On November 2, 2009, AOS reported pump problems at the Marshall Creek lift station and requested the City's immediate attention. The chief plant operator requested the City to rehabilitate both pumps at the Marshall Creek lift station. As early as May 2008, the City Council had approved approximately $200,000 to replace and/or rehabilitate the pumps at various lift stations. On November 24, 2009, the City replaced the primary pump at the lift station with a pump which was known to have some mechanical problems. The primary pump, which also had reported problems, was then used as the standby pump. The standby pump was then sent for rehabilitation. The simultaneous failure and/or malfunctions of three different systems (dual pumps, dual power supply system, and level alarm switch) indicate a lack of proper maintenance and operation of the sewer collection and appurtenance systems. The failure of the operating staff to properly monitor, review and to take appropriate action based on the information on the SCADA operator screen also indicates a lack of training. 8. The discharge was into an ephemeral, un -named tributary of San Timoteo Creek, a water of the United States. The Basin Plan designates the following beneficial uses for the Creek: groundwater recharge, water contact recreation, non -contact water recreation, warm fresh water habitat and wildlife habitat. 9. The City violated several provisions of the SSO Order. By discharging untreated wastewater to waters of the Unites States, it violated Provision C.1 which states, "Any SSO that results in a discharge of untreated or partially treated wastewater to waters of the United States is prohibited." Provision D.1 states, "The Enrollee must comply with all conditions of this Order. Any noncompliance with this Order constitutes a violation of the California Water Code and is grounds for enforcement action." By failing to properly operate and maintain and provide adequate training to its employees and by not ensuring that its contractors are properly trained, the City violated Provision D.8. Beaumont is alleged to have violated Provisions C.1 and D.8 of the SSO Order. 10. Pursuant to CWC §13350(e), the Regional Board may impose civil liability administratively either on a daily basis [per CWC §13350(e)(1)] or on a per gallon basis [per CWC §1 3350(e)(2)], but not both. The Assistant Executive Officer proposes to impose civil liability per CWC §13350 (e)(2). City of Beaumont Page 5 of 8 April 15, 2010 ACL No. R8-2010-0007 11. CWC §13350(e)(2) states that administrative civil liability on a per gallon basis may not exceed ten dollars ($10) for each gallon of waste discharged. For the discharge incident described above, the total volume discharged and not recovered was 402,700 gallons. The maximum liability for the violation cited above on a per gallon basis is $4,027,000 (402,700 gallons X $10 per gallon = $4,027,000). 12. CWC §13327 specifies factors that the Regional Board shall consider in establishing the amount of civil liability. Consideration of these factors is addressed in the following table. Factor Comment A. Nature, An estimated 402,700 gallons of untreated wastewater (sewage) Circumstances, was discharged from Beaumont's sanitary sewer system to an Extent and ephemeral, un -named, tributary to San Timoteo Creek, a water of Gravity of the United States. Violation The sewage discharged to the tributary has the potential to impact the designated beneficial uses of the San Timoteo Creek by the introduction of bacteria, nutrients, and other pollutants. The nature of the soils in the tributary allowed sewage to be absorbed and percolated before reaching San Timoteo Creek. However, the nutrients and some of the other pollutants in sewage, once deposited in the soil, have the potential to migrate through the soil column into the ground water or be carried by storm water into the Creek and other surface waterbodies. The discharge of sewage also is a threat to public health. Once Beaumont became aware of the discharges at the Marshall Creels lift station (18 hours after its failure), Beaumont responded to the spill and was able to mobilize equipment and personnel to I put the lift station back into operation. City of Beaumont Hage 6 of 8 April 15, 2010 ACL No. 118-2010-0007 B. Culpability Regional Board staff has alleged in a previously issued administrative civil liability complaint (Complaint No. R8-2009- 0068) that Beaumont has failed to develop and implement a comprehensive Sanitary Sewer Management Plan (hereinafter "SSMP"") in compliance with the SSO Order. Staff has been working with Beaumont to bring them into compliance with this provision of the SSO Order. It has been alleged that Beaumont's failure to develop this plan, as required by the SSO Order, and its failure to take proactive steps to prevent SSOs and develop a comprehensive operation and maintenance plan has contributed to previous failures of lift stations. Failures of mechanical systems associated with the lift stations could have been prevented, or at least minimized, by proper operation and maintenance of these systems through development and implementation of a SSMP. Provision D.6(i) of the SSO Order requires the Regional Board to consider the City's progress towards developing and implementing the SSMP in any enforcement action. As indicated above, the City also failed to ensure that its contractors were adequately trained. Had AOS employees been properly trained to effectively utilize the SCADA operator screen, the spill could have been prevented or at least minimized. During the previous spill incidents, Regional Board staff had reiterated to the City the need for proper operation and maintenance of its sanitary sewer systems and for providing Padequate training to its employees/contractors. C. Economic Beaumont's decision to not act on a recommendation to repair Benefit or problematic pump units and replace them with properly sized Savings temporary units contributed to the magnitude of the discharge. However, based on recent information provided by the City, it appears that these savings were insignificant. City of Beaumont Page 7 of 8 ACL No, R8-2010-0007 April 15.2010 D. Prior History of The Assistant Executive Officer issued Administrative Civil Violations Liability Complaint No 118-2009-0068 on November 19, 2009 to Beaumont due to eight sanitary sewer overflow incidents that discharged sewage into tributaries of San Timoteo Creek. Regional Board staff are working with Beaumont to resolve this Complaint. Beaumont has also violated provisions of the Riverside County Municipal Storm Water Permit (of which they are a co -permittee). The Regional Board issued an administrative civil liability complaint for these violations. E. Staff Costs Regional Board staff spent approximately 78 hours investigating this incident. The total cost for staff time is $11,700 (78 hrsX$150/hi=$11,700). F. Ability to pay Beaumont is a city of more than 30,000 citizens. Pursuant to Water Code section 13385(k) it is not considered a small community with financial hardship and, therefore, it appears that Beaumont has the ability to pay the proposed administrative civil liability. The Prosecution Team is not in the possession of any information that Beaumont would be unable to pay the proposed liability amount. 13. After consideration of the above factors, the Assistant Executive Officer proposes that civil liability be imposed administratively on Beaumont in the amount of $111,000 for the violations cited above. 14. This penalty assessment is based on a consideration of the potential for harm from the sanitary sewer overflow event described above. Based on the potential harm from the discharge and the characteristics of the discharge, the Assistant Executive Officer determined that an assessment of $0.25 per gallon is appropriate. This is based on the fact that all of the discharge percolated into a dry creek bed and there were no identifiable beneficial use impacts. The total assessment based on flow is $100,675 (402,700 gallonsX$0.25/gallon=$100,675). This amount is then adjusted based on Beaumont's a) culpability, b) the susceptibility of the discharge to cleanup and cooperation with Regional Board staff, and c) history of violations. As indicated in the table above, Beaumont appears to have had an inordinate number of overflow incidents that suggest a lack of proper operation and maintenance. Based on lack of training and failure to implement an effective operations and maintenance City of Beaumont Page 8 of 8 April 15, 2010 ACL No. R8-2010-0007 program, an adjustment factor of 1.1 was applied related to culpability. With regard to the cleanup factor, a 0.75 adjustment factor is used in considering cleanup cooperation, Beaumont's response activities (the City responded immediately upon discovery of the discharge) and the absence of any observable impacts on the beneficial uses from the discharge. With regard to the history of violations factor, the assessment was increased by a factor of 1.2 based on the chronic history of on-going violations that has resulted in the issuing of an earlier administrative civil liability complaint (Complaint No. R8-2009- 0068). Applying each of these adjustment factors results in an adjusted final assessment of $99,668.25 ($100,675 X1.1 X.75X1.2=$99,668.25). CWC §13327 also requires consideration of economic benefit or savings, if any, resulting from the violation, and other matters as justice may require. The amount of economic benefit is insignificant so no economic benefit has been assessed for this violation. The costs of investigation and enforcement are considered as one of the "other factors as justice may require". The staff costs ($11,700) are added to the adjusted amount above, for a total assessment of $111,368.25 ($99,668.25+$11,700=$111,368.25). This amount is rounded to the nearest thousand for a final proposed assessment of $111,000.00_ WAIVER OF HEARING Beaumont may waive its right to a hearing. If you choose to do so, please sign the attached waiver form and return it, together with a check for $111,000 payable to the State Water Resources Control Board-WDPF in the enclosed preprinted envelope. If you waive your right to a hearing and pay the assessed amount, the Regional Board may not hold a hearing regarding this complaint. If you have any questions, please contact Stephen D. Mayville at (951) 782-4992 or Chuck Griffin at (951) 782-4996. I L4 / 0 r- + V - Date Kurt V. Berchtold Assistant Executive Officer California Regional Water Quality Control Board i�;- Santa Ana Region 3737 Main Street, Suite 504, Riverside, Califomin 92501-3348 Linda S. Adams Phone (951) 7824130 • FAX (951) 781.6288 • TDD (951) 782-3221 Sec-Avylor www.waterbowds.ca.gov/santasna Environmental Protection HEARING PROCEDURE FOR ADMINISTRATIVE CIVIL LIABILITY COMPLAINT NO. RB -2010-0007 ISSUED TO City of Beaumont 550 East 6th Street Beaumont, CA 92223 Riverside County SCHEDULED FOR JUNE 10, 2010 Arnold Schwanenegger Governor PLEASE READ THIS HEARING PROCEDURE CAREFULLY. FAILURE TO COMPLY WITH THE DEADLINES AND OTHER REQUIREMENTS CONTAINED HEREIN MAY RESULT IN THE EXCLUSION OF YOUR DOCUMENTS AND/OR TESTIMONY. Background The Assistant Executive Officer has issued an Administrative Civil Liability Complaint (hereinafter "Complaint") pursuant to California Water Code Section 13323 against the City of Beaumont (hereinafter "Discharger") alleging that it has violated Water Code Section 13350 by violating State Water Resources Control Board Order No. 2006-0003- DWQ, Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (Order) wherein the discharge of untreated wastewater (sewage) to waters of the United States is prohibited. The Complaint proposes that administrative civil liability in the amount of one hundred and eleven thousand dollars ($111,000) be imposed as authorized by Water Code Section 13350(e)(2). A hearing is currently scheduled to be held before the Regional Board during its June 10, 2010 meeting. Purpose of Hearing The purpose of the hearing is to consider relevant evidence and testimony regarding the Complaint. At the hearing, the Regional Board will consider whether to issue an administrative civil liability order assessing the proposed liability, or a higher or lower amount, or reject the proposed liability. The public hearing on June 10, 2010 will commence at 9:00 a.m. or as soon thereafter as practicable, or as announced in the Regional Board meeting agenda. The meeting will be held at the Irvine Ranch Water District, 16600 Sand Canyon Avenue, Irvine, California. An agenda for the meeting will be issued at least ten days before the meeting and posted on the Regional Board's web page at: hftp://www.waterboards.ca.gov/santaanaiboard info/agendas/index.shtml. California Environmental Protection Agency ��` Recycled Paper ACL R8-2010-0007 Page 2 of 8 City of Beaumont, Hearing Procedure April 15, 2010 The agenda will include the final hearing date and location, and the estimated start time for the meeting. Since the start time for this item is uncertain, all interested parties are urged to be present from the start of the Board meeting. Hearing Procedures The hearing will be conducted in accordance with this hearing procedure. This hearing procedure has been pre -approved by the Regional Board's Advisory Team in model format. A copy of the general procedures governing adjudicatory hearings before the Regional Board may be found at Title 23 of the California Code of Regulations, Section 648 et seq., and is available at http:/twww.waterboards.ca.gov or upon request. In accordance with Section 648, subdivision (d), any procedure not provided by this Hearing Procedure is deemed waived. Except as provided in Section 648 and herein, subdivision (b), Chapter 5 of the Administrative Procedures Act (commencing with Section 11500 of the Government Code) does not apply to this hearing. THE PROCEDURES AND DEADLINES HEREIN MAY BE AMENDED BY THE ADVISORY TEAM AT ITS DISCRETION. ANY OBJECTIONS TO THE HEARING PROCEDURE MUST BE RECEIVED BY THE REGIONAL BOARD'S ADVISORY TEAM BY April 22, 2010 OR THEY WILL BE WAIVED. FAILURE TO COMPLY WITH THE DEADLINES AND REQUIREMENTS CONTAINED HEREIN MAY RESULT IN THE EXCLUSION OF DOCUMENTS AND/OR TESTIMONY. Hearing Participants Participants in this proceeding are designated as either "parties" or "interested persons." Designated parties to the hearing may present evidence and cross-examine witnesses and are subject to cross-examination. Interested persons generally may not submit evidence, cross-examine witnesses, or be subject to cross examination, but may present policy statements. Policy statements may include comments on any aspect of the proceeding, but may not include evidence (e.g., photographs, eye -witness testimony, monitoring data). Interested persons who would like to submit evidence may do so if the evidence is submitted in accordance with the procedures and deadlines for submitting evidence described below. Interested persons who present evidence may be subject to cross-examination. Both designated parties and interested persons may be asked to respond to clarifying questions from the Regional Board, staff or others, at the discretion of the Regional Board. The following participants are hereby designated as parties in this proceeding: (1) Regional Board Prosecution Team (2) City of Beaumont, also referred to as the Discharger California Environmental Protection Agency Cot RecXkd Paper ACL R8-2010-0007 Page 3 of 8 April 15, 2010 City of Beaumont, Hearing Procedure Re uestina Desi nated PaM Status Persons who wish to participate in the hearing as a designated party must request party status by submitting a request in writing (with copies to the existing designated parties) so that it is received by 5 p.m. on April 22, 2010 by Advisory Team Attorney David Rice, David rice waterboa rds. ca.a ov. The request shall include an explanation of the basis for status as a designated party (e.g., how the issues to be addressed in the hearing and the potential actions by the Regional Board affect the person), the information required of designated parties as provided below, and a statement explaining why the party or partes designated above do not adequately represent the person's interest. Any opposition to the request must be received by the Advisory Team, the person requesting party status, and all parties by 5 p.m. on April 29, 2010. The parties will be notified by 5 p.m. on May 6. 2010 in writing whether the request has been granted or denied. Prima Contacts Advisory Team: David Rice (email: DavidriceCa7waterboards.ca�c_ov) Phone: 916-341-5182 State Water Resources Control Board P.O. Box 100 Sacramento, CA 95812-0100 Prosecution Team: Reed Sato (email: rsato@waterboards.ca.sgov) Phone: 916-341-5889 State Water Resources Control Board P.O. Box 100 Sacramento, CA 95812-0100 Discharger: Alan Kapanicas, City Manager Email: (currently not available) Phone: 909-395-2010 City of Beaumont 550 East 6th Street Beaumont, CA 92223 California Environmental Protection Agency R�• Recycled Poper ACL R8-2010-0007 Page 4 of 8 April 15, 2010 City of Beaumont, Hearing Procedure Seaaration of Functions To help ensure the fairness and impartiality of this proceeding, the functions of those who will act in a prosecutorial role by presenting evidence for consideration by the Regional Board (Prosecution Team) have been separated from those who will provide advice to the Regional Board (Advisory Team). Members of the Advisory Team are: David Rice, Staff Counsel, State Water Resources Control Board and Gerard Thibeault, Executive Officer, Santa Ana Regional Water Quality Control Board. Members of the Prosecution Team are: Reed Sato, Director, Office of Enforcement, State Water Resources Control Board; Kurt Berchtold, Assistant Executive Officer, Santa Ana Regional Water Quality Control Board; Michael Adackapara, Division Chief, Santa Ana Regional Water Quality Control Board; Stephen D. Mayville, Enforcement Unit Chief, Santa Ana Regional Water Quality Control Board; Chuck Griffin, Enforcement Unit, Santa Ana Regional Water Quality Control Board and Ken Theisen, Compliance and Regulations Section, Santa Arta Regional Water Quality Control Board. Any members of the Advisory Team who normally supervise any members of the Prosecution Team are not acting as their supervisors in this proceeding, and vice versa Members of the Prosecution Team may have acted as advisors to the Regional Board in other, unrelated matters, but they are not advising the Regional Board in this proceeding. Members of the Prosecution Team have not had any ex parte communications with the members of the Regional Board or the Advisory Team regarding this proceeding. Ex Parte Communications The designated parties and interested persons are forbidden from engaging in ex parte communications regarding this matter with members of the Advisory Team or members of the Regional Board. An ex parte contact is any written or oral communication pertaining to the investigation, preparation, or prosecution of the Complaint between a member of a designated party or interested person on the one hand, and a Regional Board member or an Advisory Team member on the other hand, unless the communication is copied to all other designated parties (if written) or made in a manner open to all other designated parties (if oral). Communications regarding non- controversial procedural matters are not ex parte contacts and are not restricted. Communications among one or more designated parties and interested persons themselves are not ex parte contacts. Hearing Time Limits To ensure that all participants have an opportunity to participate in the hearing, the following time limits shall apply: Each designated party shall have a combined 20 minutes to present evidence, cross-examine witnesses (if warranted), and provide a closing statement; and each interested person shall have 3 minutes to present a non - evidentiary policy statement. Participants with similar interests or comments are requested to make joint presentations, and participants are requested to avoid redundant comments. Participants who would like additional time must submit their California Environmental Protection Agency a Recyc%d Paper ACL R8-2010-0007 Page 5 of 8 City of Beaumont, Hearing Procedure April 15, 2010 request to the Advisory Team so that it is received no later than May 6, 2010. Additional time may be provided at the discretion of the Advisory Team (prior to the hearing) or the Regional Board Chair (at the hearing) upon a showing that additional time is necessary. Submission of Evidence and Policy Statements The following information must be submitted in advance of the hearing: 1. All evidence (other than witness testimony to be presented orally at the hearing) that the Designated Party would like the Regional Board to consider. Evidence and exhibits already in the public files of the Regional Board may be submitted by reference as long as the exhibits and their location are clearly identified in accordance with Title 23, CCR, Section 648.3. 2. All legal and technical arguments or analysis. 3. The name of each witness, if any, whom the designated party intends to call at the hearing, the subject of each witness' proposed testimony, and the estimated time required by each witness to present direct testimony. 4. The qualifications of each expert witness, N any. 5. If the Discharger intends to argue an inability to pay the civil liability proposed in the Complaint (or an increased or decreased amount as may be imposed by the Regional Board), the Discharger should submit supporting evidence as set forth in the "ACL Fact Sheet" under "Factors that must be considered by the Board." The Prosecution Team shall submit 15 hard copies of its information and one electronic copy of the information to Advisory Team Attorney, David Rice, so that it is received by 5 p.m. on May 6, 2010. The remaining designated parties shall submit 15 hard copies of their information and one electronic copy of the information to Advisory Team Attorney David Rice so that they are received by 5 p.m. on May 6, 2010. Any designated party that would like to submit information that rebuts the information previously submitted by other designated parties shall submit 15 hard copies of their rebuttal information and one electronic copy of the information to Advisory Team Attorney, David Rice, so that they are received by 5 p.m. on May 13, 2010. Rebuttal information shall be limited to the scope of the information previously submitted by the other designated parties. Rebuttal information that is not responsive to information previously submitted by other designated parties may be excluded. If the total amount of information submitted by any party is less than 15 pages, that party may submit the information by email, rather than in writing. In addition to the foregoing, each designated party shall submit (1) one copy of the above information to California Environmental Protection Agency Z,'p Recycled Paper ACL R8-2010-0007 Page 6 of 8 April 15, 2010 City of Beaumont, Nearing Procedure each of the other designated parties so that it is received by 5 p.m. on the deadline specked above. Interested persons who would like to submit written non -evidentiary policy statements are encouraged to submit them to the Advisory Team as early as possible, but no later than May 6, 2010. interested persons do not need to submit written non -evidentiary policy statements in order to speak at the hearing. In accordance with Title 23, California Code of Regulations, Section 648.4, the Regional Board endeavors to avoid surprise testimony or evidence. Absent a showing of good cause and lack of prejudice to the parties, the Regional Board may exclude evidence and testimony that is not submitted in accordance with this hearing procedure.. Excluded evidence and testimony will not be considered by the Regional Board and will not be included in the administrative record for this proceeding. Power Point and other visual presentations may be used at the hearing, but their content may not exceed the scope of other submitted written material. A copy of such material intended to be presented at the hearing must be submitted to the Advisory Team by May 6, 2010 for inclusion in the administrative record. Additionally, any witness who has submitted written testimony for the hearing shall appear at the hearing and affirm that the written testimony is true and correct, and shall be available for cross-examination. Request for Pre -hearing Conference A designated party may request that a pre -hearing conference be held before the hearing in accordance with Water Code Section 13228.15. A pre -hearing conference may address any of the matters described in subdivision (b) of Government Code Section 11511.5. Requests must contain a description of the issues proposed to be discussed during that conference, and must be submitted to the Advisory Team, with a copy to all other designated parties, as early as practicable. Evidentiary Objections Any designated party objecting to written evidence or exhibits submitted by another designated party must submit a written objection to the Advisory Team and all other designated parties so that it is received by 5 p.m. on May 13, 2010. The Advisory Team will notify the parties about further action to be taken on such objections and when that action will be taken. Evidentiary Documents and File The Complaint and related evidentiary documents are on file and may be inspected or copied at the Regional Board office at 3737 Main Street, Suite 500, Riverside, CA 92501 by contacting August Lucas (email: alucas waterboards.ca. ov; phone: 951- 782-7961). This file shall be considered part of the official administrative record for this hearing. Other submittals received for this proceeding will be added to this file and will California Environmental Protection Agency �� Recycled Paper ACL 118-2010-0007 Page 7 of 8 City of Beaumont, Hearing Procedure April 15, 2010 become a part of the administrative record absent a contrary ruling by the Regional Board Chair. Many of these documents are also posted on-line at: hftp://Www.waterboards.ca.gov/santaana/p-ublic notices/enforcement actions.shtml. Although the web page is updated regularly, to assure access to the latest information, you may contact Reed Sato (rsato@waterboards.ca.gov). Questions Questions concerning this proceeding may be addressed to the Advisory Team Attorney David Rice (Davidrice waterboards.ca. ov - IMPORTANT DEADLINES (Note: the Regional Board is required to provide a hearing within 90 days of issuance of the Complaint (Water Code Section 13323). The Advisory Team will generally adhere to this schedule unless the discharger waives that requirement.) April 15, 2010: Prosecution Team issues ACL Complaint to Discharger and Advisory Team, sends Hearing Procedure to Discharger and Advisory Team, and publishes Public Notice. April 22, 2010: Deadline for requests for designated party status. April 22, 2010: Deadline for objections, if any, to proposed Hearing Procedure. April 29, 2010: Deadline for oppositions to requests for designated party status. April 29, 2010: Discharger's deadline for waiving right to hearing. May 06, 2010: Advisory Team issues decision on requests for designated party status, if any. May 06, 2010: Prosecution Team's deadline for all information required under "Submission of Evidence and Policy Statements." California Environmental Protection Agency Recycled Paper ACL R8-2010-0007 Page 8 of 8 April 15, 2010 City of Beaumont, Hearing Procedure May 06, 2010: Designated Parties' Deadline for all information required under "Submission of Evidence and Policy Statements." May 06, 2010: Interested Persons' deadline for written non -evidentiary policy statements. May 13, 2010: All Designated Parties' deadline for rebuttal information, evidentiary objections, and requests for additional time at the hearing, if any. June 10, 2010: Public Hearing. Y-� V �qw Kurt V. Berchtold Assistant Executive Officer Regional Board Prosecution Team 4 /15 /kP Date California Environmental Protection Agency Q� Recycled Pope, California Regional Water Quality Control Board vw-;- Santa Ana Region 3737 MainStreet, Suite 500, Riverside, California 92501-3348 Linda S. Adams Phone (951) 782-4130 • FAX (951) 781-6288 • Too (951) 782-3221 Arnold Schwarzenegger Seeretaryfor www.waterboards.ca.gov/santaaaa Governor En ronnrental Proteuion WAIVER FORM FOR ADMINISTRATIVE CIVIL LIABILITY COMPLAINT By signing this waiver, I affirm and acknowledge the following: I am duly authorized to represent the City of Beaumont (hereinafter "Discharger") in connection with Administrative Civil Liability Complaint No. R8-2010-0007 (hereinafter "Complaint"). I am informed that California Water Code Section 13323, Subdivision (b), states that, "a hearing before the regional board (Santa Ana Regional Water Quality Control Board [hereinafter "Regional Board"]) shall be conducted within 90 days after the party has been served [with the Complaint]. The person who has been issued a complaint may waive the right to a hearing." 0 (OPTION 1: Check here if the Discharger waives the hearing requirement and will pay the liability in full.) a. I hereby waive any right the Discharger may have to a hearing before the Regional Board. b. I certify that the Discharger will remit payment for the proposed civil liability in the full amount of one hundred and eleven thousand dollars ($111,000) by check that references "ACL Complaint No. R8-2010-0007" made payable to the "State Water Resources Control Board-WDPF" Payment must be received by the Regional Board by April 29, 2010 or the Regional Board may adopt an Administrative Civil Liability Order requiring payment. c. I understand the payment of the above amount constitutes a proposed settlement of the Complaint, and that any settlement will not become final until after the 30 -day public notice and comment period. Should the Regional Board receive significant new information or comments from any source (excluding the Regional Board's Prosecution Team) during this comment period, the Regional Board's Assistant Executive Officer may withdraw the Complaint, return payment, and issue a new complaint. I understand that this proposed settlement is subject to approval by the Executive Officer for the Regional Board, and that the Regional Board may consider this proposed settlement in a public meeting or hearing. I also understand that approval of the settlement will result in the Discharger having waived the right to contest the allegations in the Complaint and the imposition of civil liability. d. I understand that payment of the above amount is not a substitute for compliance with applicable laws and that continuing violations of the type alleged in the Complaint may subject the Discharger to further enforcement, including additional civil liability. 0 (OPTION 2: Check here if the Discharger waives the 90 -day hearing requirement in order to engage in settlement discussions.) 1 hereby waive any right the Discharger may have to a hearing before the Regional Board within 90 days after service of the Complaint, but 1 reserve the ability to request a hearing in the future. I certify that the Discharger will promptly engage the Regional Board Prosecution Team in settlement discussions to attempt to resolve the outstanding violation(s). By checking this box, the Discharger requests that the Regional California Environmental Protection Agency 0D. Recycled Paper WAIVER FORM ACL No. R8-2010-007, CITY OF BEAUMONT -2- Board delay the hearing so that the Discharger and the Prosecution Team can discuss settlement. It remains within the discretion of the Regional Board to agree to delay the hearing. Any proposed settlement is subject to the conditions described above under "Option 1." D (OPTION 3: Check here if the Discharger waives the 90 -day hearing requirement in order to extend the hearing date and/or hearing deadlines. Attach a separate sheet with the amount of additional time requested and the rationale.) I hereby waive any right the Discharger may have to a hearing before the Regional Board within 90 days after service of the Complaint. By checking this box, the Discharger requests that the Regional Board delay the hearing and/or hearing deadlines so that the Discharger may have additional time to prepare for the hearing. It remains within the discretion of the Regional Board to approve the extension. 0 (OP77ON 4: Check here if the Discharger waives the hearing requirement and will submit a proposed compliance project or supplemental environmental project. if the proposal is rejected, the Discharger will pay the liability in full.) a. I hereby waive any right the Discharger may have to a hearing before the Regional Board. b. I certify that the Prosecution Team has authorized the Discharger to submit a proposed Supplemental Environmental Project in lieu of payment of $55,500. 1 agree to submit the proposal and check for $55,500 [the remainder of the proposed civil liability] within 60 days of the date of the Complaint. i understand that the proposal must conform to the requirements specified in the State Water Resources Control Board's Water Quality Enforcement Policy. If I receive written notice from the Prosecution Team that the Discharger has failed to timely submit a proposal or that the Prosecution Team has rejected the proposal, I certify.that the Discharger will remit payment of the proposed civil liability in the full amount of one hundred and eleven thousand dollars ($111,000) by check that references "ACL Complaint No. R8-2010-0007." made payable to the "State Water Resources Control Board - WDPF "within ten days of the notice. If payment is not timely received, the Regional Board may adopt an Administrative Civil Liability Order requiring payment. c. I understand the acceptance or rejection of the proposed supplemental environmental project and payment of the remainder of the proposed civil liability constitutes a proposed settlement of the Complaint, and that any settlement will not become final until after the 30 -day public notice and comment period. Should the Regional Board receive significant new information or comments from any source (excluding the Regional Board's Prosecution Team) during this comment period, the Regional Board's Assistant Executive Officer may withdraw the complaint, return payment, and issue a new complaint. I understand that this proposed settlement is subject to approval by the Executive Officer of the Regional Board, and that the Regional Board may consider this proposed settlement in a public meeting or hearing. I also understand that approval of the settlement will result in the Discharger having waived the right to contest the allegations in the Complaint and the imposition of civil liability. d. I understand that payment of the above amount is not a substitute for compliance with applicable laws and that continuing violations of the type alleged in the California Environmental Protection Agency RecydedPaper WAIVER FORM ACL No. R8-2010-007, CITY OF BEAUMONT -3- Complaint may subject the Discharger to further enforcement, including additional civil liability. (Print Name and Title) (Signature) (Date) California Environmental Protection Agency _! Recycled Paper April 21, 2010 C 4 i - ty of Beaunwnt 55E7 E (,t1i tri-e'r Betaliii(yiir, iA ` !' ( 951 i 76--9 � 5 0 Fox (`)51 ) £-,045 0 haIlii: C? ' ittl << C7.tJt'�1ttlYt(7)ff.fC7,;i_ K11VIt''Ci,%>caaiaoiir,Cali,if Mr Kurt Berchtold Assistant Executive Officer Regional Board Prosecution Team California Regional Water Quality Control Board Santa Ana region 3737 Main. Street, Suite 500 Riverside, CA 92501 Reference: Administrative Civil Liability (ACL) Complaint No. R8-2009-0068 Dear Mr Berchtold: This is a follow up to a phone conversation on April 20, 2010 between Mike Adackapara of your staff and Hisam Baqai, a representative of the City of Beaumont on the subject. The City of Beaumont agrees to waive the 90 -day time frame to hold a public hearing before the Regional Water Quality Control Board regarding the ACL Complaint No. R8- 2010-0007 issued to the City on Aprill5th,2010 for the alleged discharge of untreated wastewater to waters of the State from the Marshall Creek lift station on December 18, 2009. The purpose of the waiver of the 90 -day public hearing is to allow time for the City Staff to meet with the Regional Board Staff to submit a proposed. Supplemental Environmental Project ( SEP ) in lieu of payment of $55,000 and to pay the reminder penalty in the amount of $55,000 within 60 -days from the date of the Complaint. We are enclosing WAIVER FORM with OPTION 4 marked that provides the City's concurrence to delay the hearing. Notwithstanding our decision to waive the right to the hearing before the Regional Board, we have some issues with the facts cited in the ACL Complaint in Finding 7d. However, in the spirit of cooperation with the Board the City is not contesting those facts. We look forward to our meeting with your staff at your earliest convenience. Very trulyyours, CITY QP B AUMON` I ff r� " City Manager Cc Mike Adackapara Enclosure: Waiver Form for Administrative Civil Liability Complaint WAiIVER FORM ACL No. R8-2010-007, CITY OF BEAUMONT -2- Board delay the hearing so that the Discharger and the Prosecution Team can discuss settlement. It remains within the discretion of the Regional Board to agree to delay the hearing. Any proposed settlement is subject to the conditions described above under "Option 1." ❑ (OPTION 3: Check here if the Discharger waives the 90 -day hearing requirement in order to extend the hearing date andlor hearing deadlines. Attach a separate sheet with the amount of additional time requested and the rationale.) I hereby waive any right the Discharger may have to a hearing before the Regional Board within 90 days after service of the Complaint. By checking this box, the Discharger requests that the Regional Board delay the hearing and/or hearing deadlines so that the Discharger may have additional time to prepare for the hearing. It remains within the discretion of the Regional Board to approve the extension. (OPTION .4: Check here if the Discharger waives the hearing requirement and will submit a proposed compliance project or supplemental environmental project if the proposal is rejected, the Discharger will pay the liability in full.) a. I hereby waive any right the Discharger may have to a hearing before the Regional Board. b. I certify that the Prosecution Team has authorized the Discharger to submit a proposed Supplemental Environmental Project in lieu of payment of $55,500. 1 agree to submit the proposal and check for $55,500 [the remainder of the proposed civil liability] within 60 days of the date of the Complaint. 1 understand that the proposal must conform to the requirements specified in the State Water Resources Control Board's Water Quality Enforcement Policy. If i receive.written notice from the Prosecution Team that the Discharger has failed to timely submit a proposal or that the Prosecution Team has rejected the proposal, i certify -that the Discharger will remit payment of the proposed civil liability in the full amount of one hundred and eleven thousand dollars ($111,000) by check that references "ACL Complaint No. R8-2010-0007." made payable to the "State Water Resources Control Board - WDPF "within ten days of the notice. If payment is not timely received, the Regional Board may adopt an Administrative Civil Liability Order requiring payment. c. I understand the acceptance or rejection of the proposed supplemental environmental project and payment of the remainder of the proposed civil liability constitutes a proposed settlement of the Complaint, and that any settlement will not become final until after the 30 -day public notice and comment period. Should the Regional Board receive significant new information or comments from any source (excluding the Regional Board's Prosecution Team) during this comment period, the Regional Board's Assistant Executive Officer may withdraw the complaint, return payment, and issue a new complaint. I understand that this proposed settlement is subject to approval by the Executive Officer of the Regional Board, and that the Regional Board may consider this proposed settlement in a public meeting or hearing. I also understand that approval of the settlement will result in the Discharger having waived the right to contest the allegations in the Complaint and the imposition of civil liability. d. I understand that payment of the above amount is not a substitute for compliance with applicable laws and that continuing violations of the type alleged in the California Environmental Protection Agency %_ ♦ Recycled Paper WAIVER FORM AC! No. R8-2010-007, CITY OF BEAUMONT -3- Complaint may subject the Discharger to further enforcement, including additional civil liability. x?,r-ri N ( t'DIbme Intl T'ifl�) (Signature) ` z (Date) California Environmental Protection Agency p�_ ♦ Recycled Paper Kishen Prathivadi From: kprathivadi@urbaniogicgroup.com Sent: Monday, May 03, 2010 12:09 PM To: madackapara@waterboards.ca.gov Subject: Ref: ACL R8-2010-0007 Dear Mike, This is a follow up to our meeting on 4-30-2010 at your office in Riverside. We stated that in accordance with the options provided in the ACL R8-2010-0007 dated April 15, 2010, the City of Beaumont is pleased to participate in funding of the Septic study to be completed by UCR. The total amount that will be contributed by the City is 50% of the total ACL amount of $ 110,000. Therefore, the UC Regents check amount would be upto $ 55,000. This amount and the remainder amount of $ 55,000 for the SWRCB Clean up Fund will be paid within 60 days of the ACL date. Both, Hisam and I appreciate your assistance in this matter. Regards, Kishen 1 u Linda S. Adams Secrelary fir Gnvirrovnental Protection California Regional Water Quality Control Board Santa Ana Region November 19, 2009 3737 Main Street. Suite 500, Riverside, California 92501-3348 Phone (951) 782-4130 • FAX (951) 781-6288 • TDD (951) 782-3221 www.waterboards.ca.govlsantaana CERTIFIED MAIL RETURN RECEIPT REQUESTED Alan C. Kapanicas, City Manager City of Beaumont 550 E. 6th Street Beaumont, CA 92223 Arnold Schwarzenegge Governor TRANSMITTAL OF ADMINISTRATIVE CIVIL LIABILITY (ACL) COMPLAINT TO THE CITY OF BEAUMONT, ACL COMPLAINT NO. R8-2009-0068 Dear Mr. Kapanicas: Enclosed is a certified copy of Administrative Civil Liability Complaint No. R8-2009-0068 (hereinafter the "Complaint"). The Complaint alleges that the City of Beaumont violated State Water Resources Control Board Order No. 2006-0003-DWQ by discharging untreated wastewater (sewage) to waters of the State, for which a penalty may be imposed under Section 13350 of the California Water Code. The Complaint proposes that administrative civil liability in the amount of ninety-nine thousand nine hundred dollars ($99,900) be imposed as authorized under Water Code Section 13350(e)(2). Also enclosed are a Waiver Form and a Hearing Procedure that sets forth important requirements and deadlines for participation in the hearing. Additionally, a Fact Sheet describing the Complaint process is available at: http.,//kvww.waterboards.ca.qov/santaana­/Public notices er f r ement actions.shtrr l The Fact Sheet describes the Complaint process and explains what the City of Beaumont can expect and its obligations as the process proceeds. If preferred, a hard copy of the Fact Sheet may be obtained by contacting Stephen D. Mayville at (951) 782-4992. Please read each document carefully. This Complaint may result in the issuance of an order by the Regional Board requiring that you Ray a penalty. California Environmental Protection Agency Rec2 clod Paper Mr. Alan Kapanicas City of Beaumont - 2 - November 19, 2009 If necessary, a public hearing on this matter will be scheduled for the Regional Board meeting on January 29, 2010. The staff report regarding this Complaint and the meeting agenda will be mailed to you not less than 10 days prior to the hearing. Pursuant to California Water Code Section 13323, the City of Beaumont has the option to waive its right to a hearing. Should the City of Beaumont waive its right to a hearing and pay the proposed assessment, the Regional Board may not hold a public hearing on this matter. If the City of Beaumont chooses to waive its right to a hearing, please sign and submit the enclosed Waiver Form with a check for ninety-nine thousand nine hundred dollars ($99,900) made payable to the State Water Resources Control Board-WDPF. The Waiver Form and check should be sent to the Regional Board office in the enclosed pre- printed envelope. If the City of Beaumont does not wish to waive its right to a hearing, requesting a pre - hearing meeting, as set forth in the Hearing Procedure is recommended. Should you wish to schedule a pre -hearing meeting, please contact me (951-782-3286) prior to December 14, 2009. If you have any questions about the Complaint or the enclosed documents, please contact Stephen D. Mayville, Chief of Enforcement, at (951) 782-4992 (sma1-ville �)waterboards.ca. ov). All legal questions should be directed to Reed Sato at (916) 341-5889 (rsato@waterboards.ca.gov), Director, Office of Enforcement. Sincerely, _.sV. Kurt V. Berchtold Assistant Executive Officer Regional Board Prosecution Team Enclosures: Complaint No. R8-2009-0068, Waiver Form and Preprinted Envelope cc with a copy of the complaint (by electronic mail only): Board Members Executive Officer (Regional Board Advisory Team) State Water Resources Control Board, Office of Chief Counsel — David Rice (Regional Board Advisory Team Attorney) State Water Resources Control Board, Division of Water Quality — Bruce Fujimoto State Water Resources Control Board, Office of Enforcement — Reed Sato (Regional Board Prosecution Team Attorney) U.S. Environmental Protection Agency, Region 9 (WTR-7) — Ken Greenberg California Environmental Protection Agency Recycled Paper STATE OF CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD SANTA ANA REGION In the Matter of: City of Beaumont ) Complaint No. R8-2009-0068 550 E. 6t" Street ) for Beaumont, CA 92223 ) Administrative Civil Liability Attn: Alan C. Kapanicas YOU ARE HEREBY GIVEN NOTICE THAT: 1. The City of Beaumont (hereinafter "Beaumont") is alleged to have violated provisions of law for which the California Regional Water Quality Control Board, Santa Ana Region (hereinafter "Regional Board"), may impose administrative civil liability under California Water Code (hereinafter "CWC") §13350. 2. A hearing concerning this Complaint will be held before the Board within ninety days of the date of issuance of this Complaint, unless pursuant to CWC Section 13323, Beaumont waives its right to a hearing. The waiver procedures are specified in the attached Waiver Form. The hearing in this matter is scheduled for the Regional Board's regular meeting on January 29, 2010, at the City Council Chambers, 25541 Barton Road, City of Loma Linda, California. Beaumont, or its designated representative, will have an opportunity to appear and be heard, and to contest the allegations in this Complaint and the imposition of civil liability by the Regional Board. An agenda for the meeting and the staff report relating to this item will be mailed to you not less than 10 days prior to the hearing date. 3. If a hearing is held on this matter, the Regional Board will consider whether to affirm, reject, or modify the proposed administrative civil liability or whether to refer the matter to the Attorney General for recovery of judicial civil liability. If this matter proceeds to hearing, the Prosecution Team reserves the right to seek an increase in the civil liability amount to cover the costs of enforcement incurred subsequent to the issuance of this Complaint through hearing. THE COMPLAINT IS BASED ON THE FOLLOWING FACTORS: 4. Beaumont owns and operates one hundred thirty five (135) miles of gravity sanitary sewer main and fifteen (15) miles of sanitary sewer force main within its service boundary. The operation and maintenance of sanitary sewer systems are regulated under the State's General Waste Discharge Requirements for Sanitary Sewer -1- City of Beaumont -2- ACL No. R8-2009-0068 Systems, Water Quality Order No. 2006-0003 (hereinafter "SSO Order"). On November 2, 2006, Beaumont obtained coverage under the SSO Order. 5. Beaumont's sanitary sewer system normally contains wastewater from residential, commercial and industrial establishments. Untreated sanitary wastewater (sewage) generally contains high levels of bacteria, metals, nutrients and other pollutants. 6. A series of eight separate sanitary sewer overflow (SSO) incidents occurred between March and September 2009 from Beaumont's sanitary sewer system. This resulted in an estimated aggregate volume of 132,000 gallons of sewage being discharged (60,000 gallons of the spilled sewage were recovered) either into wetlands tributary to San Timoteo Creek or to un -named, ephemeral drainage courses tributary to San Timoteo Creek. Each of these incidents resulted in a discharge of sewage to waters of the United States. Sewage discharged to these un -named tributaries mostly percolated into the soils before reaching San Timoteo Creek. The overflow incidents were as follows: a) On March 12, 2009, 30,000 gallons of raw sewage were spilled from the Western Knolls force main' located at 1400 Western Knolls Avenue. Approximately 10,000 gallons were recovered. The reported cause of the spill was a break in a force main. b) On March 29, 2009, 50,000 gallons of raw sewage were spilled from the Western Knolls force main. Approximately 30,000 gallons were recovered. The reported cause of the spill was another failure in the same force main, as the March 12th break. c) On April 2, 2009, 30,000 gallons of raw sewage were spilled from the Western Knolls force main from a third force main failure incident. Approximately 20,000 gallons were recovered. d) On July 22, 2009, 5,000 gallons of sewage overflowed from the Western Knolls lift station as a result of a pipe failure within the dry well of the lift station that shorted out electrical service to the pumps. None of the sewage was recovered. e) On August 18, 2009, 2,000 gallons of sewage overflowed from the Upper Oak lift station as a result of a failure from a pressure relief valve. None of the sewage was recovered. f) On August 20, 2009, 2,000 gallons of sewage overflowed from the Upper Oak lift station as a result of a failure from a pressure relief valve. None of the sewage was recovered. g) On September 2, 2009, 3,000 gallons of sewage overflowed from a manhole at Little Lower Oak lift station as a result of a blockage within the sewer line and discharged into a storm drain. None of the sewage was recovered. h) On September 23, 2009, 10,000 gallons of sewage overflowed from a manhole just up gradient of Little Lower Oak lift station. The overflow was the result of a failure of the sewage lift station. All of the sewage was discharged to wetlands tributary to San Timoteo Creek. In both this spill incident and the September 2nd incident at the Little Lower light station, all of the sewage was discharged to waters of the United ' Force mains are pipelines that convey wastewater under pressure. City of Beaumont -3- ACL No. R8-2009-0068 States due to the close proximity of a storm drain inlet that was tributary to the wetlands. 7. The discharges were either into wetlands tributary to San Timoteo Creek or to ephemeral, un -named tributaries of San Timoteo Creek, a water of the United States. The Basin Plan designates the following beneficial uses for the Creek: groundwater recharge, water contact recreation, non -contact water recreation, warm fresh water habitat and wildlife habitat. 8. Provision C. 1 of the SSO Order states, "Any SSO that results in a discharge of untreated or partially treated wastewater to waters of the United States is prohibited." The above discharges were in violation of this provision of the SSO Order. 9. Provision D.1 of the SSO Order states, "The Enrollee must comply with all conditions of this Order. Any noncompliance with this. Order constitutes a violation of the California Water Code and is grounds for enforcement action." Beaumont is alleged to have violated Provision C.1 of the SSO Order. 10. Pursuant to CWC §13350(e), the Regional Board may impose civil liability administratively either on a daily basis [per CWC §13350(e)(1)] or on a per gallon basis [per CWC §13350(e)(2)], but not both. The Assistant Executive Officer proposes to impose civil liability per CWC §13350 (e)(2). 11. CWC §13350(e)(2) states that administrative civil liability on a per gallon basis may not exceed ten dollars ($10) for each gallon of waste discharged. For the eight incidents described above, the total volume discharged and not recovered was 72,000 gallons. The maximum liability for the violations cited above on a per gallon basis is $720,000 (72,000 gallons X $10 per gallon = $720,000). 12. CWC §13327 specifies factors that the Regional Board shall consider in establishing the amount of civil liability. Consideration of these factors is addressed in the following table. Factor Comment A. Nature, Beaumont discharged an estimated 72,000 gallons of untreated Circumstances, wastewater (sewage) from its sanitary sewer system to either Extent and wetlands tributary to San Timoteo Creek or to ephemeral, un - Gravity of named, tributaries to San Timoteo Creek. The discharge of Violation sewage was from eight separate sanitary sewer overflows that occurred within a six month span of time. � The sewagedischarged to tributaries of San Timoteo Creek has City of Beaumont -4- ACL No. R8-2009-0068 the potential to impact the designated beneficial uses of the Creek by the introduction of bacteria, nutrients, and other pollutants. For incidents involving discharges to ephemeral tributaries, the nature of the soils allowed sewage to be absorbed before reaching San Timoteo Creek. However, the nutrients and some of the other pollutants in sewage, once deposited in the soil, have the potential to migrate through the soil column into the ground water or carried by storm water into other surface waterbodies. The discharge of sewage also causes a nuisance j and is a threat to public health. Beaumont responded to the spill in a timely manner and was able to mobilize needed equipment and personnel to swiftly clear the blockages, repair the pump stations, etc. Moreover, Beaumont has accelerated its construction activities to replace the problematic 8" force main and accelerated its schedule for bringing on-line a new lift station (Mesa Lift Station) to address the problematic lift station. B. Culpability Beaumont has failed to develop and implement a comprehensive Sanitary Sewer Management Plan (hereinafter "SSMP"") in compliance with the SSO Order. Regional Board staff has been working with Beaumont staff to bring the City into compliance with the SSO Order. Beaumont's failure to develop this plan as required by the SSO Order and its failure to take proactive steps to prevent SSOs may have contributed to failures of the force main and the lift stations. Repeated failures of the force main and the pump stations could have been prevented, or at least minimized, by proper operation and maintenance of the systems through development and implementation of a SSMP. Also, the number of sanitary sewer overflows, some of them from the same location, from March to September 2009 indicates a lack of responsiveness from the City. FC—.,Economic The Regional Board staff has insufficient information to assess Benefit or economic benefit. It appears that Beaumont delayed some of the Savings capital improvement projects and benefitted monetarily from it. The exact cost benefit from this delay could not be ascertained. City of Beaumont ACL No. R8-2009-0068 -5- D. Prior History of Beaumont reported two SSO incidents that were violations of the Violations SSO Order prior to January 2009. Beaumont has also violated provisions of the Riverside County municipal storm water permit (of which they are a co -permittee). The Regional Board issued an administrative civil liability complaint for these violations. E. Staff Costs Regional Board staff spent approximately 126 hours investigating this incident. The total cost for staff time is $18,900 (126 hrsX$150/hr=$18,900). F. Ability to pay Beaumont is a city of more than 30,000 citizens. Pursuant to Water Code section 13385(k) it is not considered a small community with financial hardship and, therefore, it appears that Beaumont has the ability to pay the proposed administrative civil liability. The Prosecution Team is not in the possession of any information that Beaumont is unable to pay the proposed liability amount. 13. After consideration of the above factors, the Assistant Executive Officer proposes that civil liability be imposed administratively on Beaumont, in the amount of $99,900 for the violations cited above. 14. This penalty assessment is based on a consideration of the potential for harm from the SSO events listed above. Based on the potential harm from the discharge and the characteristics of the discharge, the Assistant Executive Officer determined that an assessment of $1.50 per gallon is appropriate. The total assessment based on flow is $108,000 (72,000 gallonsX$1.50/gallon=$108,000). This amount is then adjusted based on Beaumont's culpability, cleanup effort and cooperation, and history of violations. As indicated in the table above, Beaumont appears to have had an inordinate number of overflow incidents that suggest a lack of proper operation and maintenance. A 0.75 adjustment factor is recommended based on consideration of Beaumont's prompt response activities, the fact that none of the discharges reached any flowing body of water, and the absence of any observable impacts on the beneficial uses from the discharges. Based on the foregoing, the 0.75 factor was used to adjust the amount calculated above resulting in an adjusted assessment of $81,000 ($108,000X0.75=$81,000). CWC §13327 also requires consideration of economic benefit or savings, if any, resulting from the violation, and other matters as justice may require. These costs are added to the final liability to determine the assessed civil liability for the alleged violation(s). No economic benefit has been assessed for Beaumont's eight overflow incidents. The costs of investigation and enforcement are considered as one of the "other factors City of Beaumont ACL No. R8-2009-0068 H as justice may require". The staff costs ($18,900) are added to the amount in the above paragraph, for a total assessment of $99,900 ($81,000+$18,900=$99,900). WAIVER OF HEARING Beaumont may waive its right to a hearing. If you choose to do so, please sign the attached waiver form and return it, together with a check for $99,900 payable to the State Water Resources Control Board-WDPF in the enclosed preprinted envelope. If you waive your right to a hearing and pay the assessed amount, the Regional Board_ may not hold a hearing regarding this complaint. If you have any questions, please contact Stephen D. Mayville at (951) 782-4992 or Chuck Griffin at (951) 782-4996. I f Date Kurt V. Berchtold Assistant Executive Officer Regional Board Prosecution Team Linda S. Adams Secrelatyfor Environmental Protection California Regional Water Quality Control Board Santa Ana Region 3737 Main Street, Suite 500, Riverside, California 92501-3348 Phone (951) 782-4130 • FAx (951) 781-6288 • TDD (951) 782-3221 www.waterboards.ca. ;ov/santaana WAIVER FORM FOR ADMINISTRATIVE CIVIL LIABILITY COMPLAINT By signing this waiver, -I affirm and acknowledge the following: 4 y ¢ :7 5 V Arnold Schwarzenegge Governor I am duly authorized to represent the City of Beaumont (hereinafter "Discharger") in connection with Administrative Civil Liability Complaint No. R8-2009-0068 (hereinafter "Complaint"), I am informed that California Water Code section 13323, subdivision (b), states that, "a hearing before the regional board (Santa Ana River Regional Water Quality Control Board (hereinafter "Regional Board")) shall be conducted within 90 days after the party has been served [with the complaint]. The person who has been issued a complaint may waive the right to a hearing." ❑ (OPTION 1: Check here if the Discharger waives the hearing requirement and will pay the liability in full.) a. I hereby waive any right the Discharger may have to a hearing before the Regional Board. b. I certify that the Discharger will remit payment for the proposed civil liability in the full amount of ninety-nine thousand nine hundred dollars ($99,900) by check that references "ACL Complaint No. R8-2009-0068." made payable to the "State Water Resources Control Board-WDPF". Payment must be received by the Regional Board by December 14, 2009 or the Regional Board may adopt an Administrative Civil Liability Order requiring payment. c. I understand the payment of the above amount constitutes a proposed settlement of the Complaint, and that any settlement will not become final until after the 30 -day public notice and comment period. Should the Regional Board receive significant new information or comments from any source (excluding the Regional Board's Prosecution Team) during this comment period, the Regional Board's Assistant Executive Officer may withdraw the Complaint, return payment, and issue a new complaint. I understand that this proposed settlement is subject to approval by the Executive Officer for the Regional Board, and that the Regional Board may consider this proposed settlement in a public meeting or hearing. I also understand that approval of the settlement will result in the Discharger having waived the right to contest the allegations in the Complaint and the imposition of civil liability.. d. I understand that payment of the above amount is not a substitute for compliance with applicable laws and that continuing violations of the type alleged in the Complaint may subject the Discharger to further enforcement, including additional civil liability. ❑ (OPTION 2: Check here if the Discharger waives the 90 -day hearing requirement in order to engage in settlement discussions.) I hereby waive any right the Discharger may have to a hearing before the Regional Board within 90 days after service of the Complaint, but I reserve the ability to request a hearing in the future. I certify that the Discharger will promptly engage the Regional Board Prosecution Team in settlement discussions to attempt to resolve the outstanding violation(s). By checking this box, the Discharger requests that the Regional California Environmental Protection Agency Recycled Paper WAIVER FORM FOR ADMINISTRATIVE CIVIL LIABILITY COMPLAINT -2- Board delay the hearing so that the Discharger and the Prosecution Team can discuss settlement. It remains within the discretion of the Regional Board to agree to delay the hearing. Any proposed settlement is subject to the conditions described above under "Option 1." ❑ (OPTION 3: Check here if the Discharger waives the 90 -day hearing requirement in order to extend the hearing date and/or hearing deadlines. Attach a separate sheet with the amount of additional time requested and the rationale.) I hereby waive any right the Discharger may have to a hearing before the Regional Board within 90 days after service of the Complaint. By checking this box, the Discharger requests that the Regional Board delay the hearing and/or hearing deadlines so that the Discharger may have additional time to prepare for the hearing. It remains within the discretion of the Regional Board to approve the extension. ❑ (OPTION 4: Check here if the Discharger waives the hearing requirement and will submit a proposed compliance project or supplemental environmental project. If the proposal is rejected, the Discharger will pay the liability in full.) a. I hereby waive any right the Discharger may have to a hearing before the Regional Board. b. I certify that the Prosecution Team has authorized the Discharger to submit a proposed Supplemental Environmental Project in lieu of payment of $49,950. 1 agree to submit the proposal and check for $49,950 [the remainder of the proposed civil liability] within 60 days of the date of the Complaint. I understand that the proposal must conform to the requirements specified in the State Water Resources Control Board's Water Quality Enforcement Policy. If I receive written notice from the Prosecution Team that the Discharger has failed to timely submit a proposal or that the Prosecution Team has rejected the proposal, I certify that the Discharger will remit payment of the proposed civil liability in the full amount of ninety-nine thousand nine hundred dollars ($99,900) by check that references "ACL Complaint No. R8-2009-0068." made payable to the "State Water Resources Control Board - WDPF "within ten days of the notice. If payment is not timely received, the Regional Water Board may adopt an Administrative Civil Liability Order requiring payment. c. I understand the acceptance or rejection of the proposed supplemental environmental project and payment of the remainder of the proposed civil liability constitutes a proposed settlement of the Complaint, and that any settlement will not become final until after the 30 -day public notice and comment period. Should the Regional Board receive significant new information or comments from any source (excluding the Water Board's Prosecution Team) during this comment period, the Regional Board's Assistant Executive Officer may withdraw the complaint, return payment, and issue a new complaint. I understand that this proposed settlement is subject to approval by the Executive Officer of the Regional Board, and that the Regional Board may consider this proposed settlement in a public meeting or hearing. I also understand that approval of the settlement will result in the Discharger having waived the right to contest the allegations in the Complaint and the imposition of civil liability. d. I understand that payment of the above amount is not a substitute for compliance with applicable laws and that continuing violations of the type alleged in the California Environmental Protection Agency %a>* Recycled Paper WAIVER FORM FOR ADMINISTRATIVE CIVIL LIABILITY COMPLAINT -3- Complaint may subject the Discharger to further enforcement, including additional civil liability. (Print Name and Title) (Signature) (Date) California Environmental Protection Agency �� Recycled Paper California Regional Water Quality Control. Board Santa Ana Region 3737 Main Street, Suite 500, Riverside, California 92501-3348 Linda S. Adams Phone (951) 782-4130 • FAX (951) 781-6288 • TDD (951) 782-3221 Secretary far www.waterboards.ea.gov/santaana Environmental Protechon HEARING PROCEDURE FOR ADMINISTRATIVE CIVIL LIABILITY COMPLAINT NO. R8-2009-0068 ISSUED TO City of Beaumont 550 East 6th Street Beaumont, CA 92223 Riverside County SCHEDULED FOR JANUARY 29, 2010 Arnold Schwarzenegge. Governor PLEASE READ THIS HEARING PROCEDURE CAREFULLY. FAILURE TO COMPLY WITH THE DEADLINES AND OTHER REQUIREMENTS CONTAINED HEREIN MAY RESULT IN THE EXCLUSION OF YOUR DOCUMENTS AND/OR TESTIMONY. Background The Assistant Executive Officer has issued an Administrative Civil Liability Complaint (hereinafter "Complaint") pursuant to California Water Code Section 13323 against the City of Beaumont (hereinafter "Discharger") alleging that it has violated Water Code Section 13350 by violating State Water Resources Control Board Order No. 2006-0003- DWQ, Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (Order) wherein the discharge of untreated wastewater (sewage) to waters of the United States is prohibited. The Complaint proposes that administrative civil liability in the amount of ninety-nine thousand nine hundred ($99,900) be imposed as authorized by Water Code Section 13350(e)(2). A hearing is currently scheduled to be held before the Regional Board during its January 29, 2010 meeting. Purpose of Hearin The purpose of the hearing is to consider relevant evidence and testimony regarding the Complaint. At the hearing, the Regional Board will consider whether to issue an administrative civil liability order assessing the proposed liability, or a higher or lower amount, or reject the proposed liability. The public hearing on January 29, 2010 will commence at 9:00 a.m. or as soon thereafter as practicable, or as announced in the Regional Board meeting agenda. The meeting will be held at the City Council Chambers, 25541 Barton Road, City of Loma Linda, California. An agenda for the meeting will be issued at least ten days before the meeting and posted on the Regional Board's web page at: hftr),//www.waterboards.ca..qov/santaana/board info/agendas/index.shtml. California Environmental Protection Agency %a Recycled Paper Mr. Alan Kapanicas, ACL R8-2009-0068 November 19, 2009 City of Beaumont Page 2of8 The agenda will include the final hearing date and location, and the estimated start time for the meeting. Since the start time for this item is uncertain, all interested parties are urged to be present from the start of the Board meeting. Hearing Procedures The hearing will be conducted in accordance with this hearing procedure. This hearing procedure has been pre -approved by the Regional Board's Advisory Team in model format. A copy of the general procedures governing adjudicatory hearings before the Regional Board may be found at Title 23 of the California Code of Regulations, Section 648 et seq., and is available at http://www.waterboards.ca.gov or upon request. In accordance with Section 648, subdivision (d), any procedure not provided by this Hearing Procedure is deemed waived. Except as provided in Section 648 and herein, subdivision (b), Chapter 5 of the Administrative Procedures Act (commencing with Section 11500 of the Government Code) does not apply to this hearing. THE PROCEDURES AND DEADLINES HEREIN MAY BE AMENDED BY THE ADVISORY TEAM AT ITS DISCRETION. ANY OBJECTIONS TO THE HEARING PROCEDURE MUST BE RECEIVED BY THE REGIONAL BOARD'S ADVISORY TEAM BY DECEMBER 14, 2009 OR THEY WILL BE WAIVED. FAILURE TO COMPLY WITH THE DEADLINES AND REQUIREMENTS CONTAINED HEREIN -MAY RESULT IN THE EXCLUSION OF DOCUMENTS AND/OR TESTIMONY. Hearing _Participants Participants in this proceeding are designated as either "parties" or "interested persons." Designated parties to the hearing may present evidence and cross-examine witnesses and are subject to cross-examination. Interested persons generally may not submit evidence, cross-examine witnesses, or be subject to cross examination, but may present policy statements. Policy statements may include comments on any aspect of the proceeding, but may not include evidence (e.g., photographs, eye -witness testimony, monitoring data). Interested persons who would like to submit evidence may do so if the evidence is submitted in accordance with the procedures and deadlines for submitting evidence described below. Interested persons who present evidence may be subject to cross-examination. Both designated parties and interested persons may be asked to respond to clarifying questions from the Regional Board, staff or others, at the discretion of the Regional Board. The following participants are hereby designated as parties in this proceeding: (1) Regional Board Prosecution Team (2) City of Beaumont, also referred to as the Discharger California Environmental Protection Agency D Recycled Paper ir Mr. Alan Kapanicas, ACL R8-2009-0068 November 19, 2009 City of Beaumont Page 3 of 8 Requesting Designated Party Status Persons who wish to participate in the hearing as a designated party must request party status by submitting a request in writing (with copies to the existing designated parties) so that it is received by 5 p.m. on November 30, 2009 by Advisory Team Attorney David Rice, Davidrice ti�w terboards.ca, ov. The request shall include an explanation of the basis for status as a designated party (e.g., how the issues to be addressed in the hearing and the potential actions by the Regional Board affect the person), the information required of designated parties as provided below, and a statement explaining why the party or parties designated above do not adequately represent the person's interest. Any opposition to the request must be received by the Advisory Team, the person requesting party status, and all parties by 5 p.m. on December 7, 2009. The parties will be notified by 5 p.m. on December 21, 2009 in writing whether the request has been granted or denied. Prima Contacts Advisory Team: David Rice (email: Davidrigggwaterboards.ca.go Phone: 916-341-5182 i State Water Resources Control Board P.O. Box 100 Sacramento, CA 95812-0100 Prosecution Team: Reed Sato (email: rsatoLd)waterboards.ca. ov) Phone: 916-341-5889 State Water Resources Control Board P.O. Box 100 Sacramento, CA 95812-0100 Discharger: Alan Kapanicas, City Manager Email: (currently not available) Phone: 909-395-2010 City of Beaumont 550 East 6t" Street Beaumont, CA 92223 California Environmental Protection Agency t} 4 Recycled Paper Mr. Alan Kapanicas, ACL R8-2009-0068 November 19, 2009 City of Beaumont Page 4 of 8 Separation of Functions To help ensure the fairness and impartiality of this proceeding, the functions of those who will act in a prosecutorial role by presenting evidence for consideration by the Regional Board (Prosecution Team) have been separated from those who will provide advice to the Regional Board (Advisory Team). Members of the Advisory Team are: David Rice, Staff Counsel, State Water Resources Control Board and Gerard Thibeault, Executive Officer, Santa Ana Regional Water Quality Control Board. Members of the Prosecution Team are: Reed Sato, Office of Enforcement, State Water Resources Control Board; Kurt Berchtold, Assistant Executive Officer, Santa Ana Regional Water Quality Control Board; Michael Adackapara, Division Chief, Santa Ana Regional Water Quality Control Board; Stephen D. Mayville, Enforcement Unit Chief, Santa Ana Regional Water Quality Control Board; Chuck Griffin, Enforcement Unit, Santa Ana Regional Water Quality Control Board and Ken Theisen, Compliance and Regulations Section, Santa Ana Regional Water Quality Control Board. Any members of the Advisory Team who normally supervise any members of the Prosecution Team are not acting as their supervisors in this proceeding, and vice versa. Members of the Prosecution Team may have acted as advisors to the Regional Board in other, unrelated matters, but they are not advising the Regional Board in this proceeding. Members of the Prosecution Team have not had any ex parte communications with the members of the Regional Board or the Advisory Team regarding this proceeding. Ex Parte Communications The designated parties and interested persons are forbidden from engaging in ex parte communications regarding this matter with members of the Advisory Team or members of the Regional Board. An ex parte contact is any written or oral communication pertaining to the investigation, preparation, or prosecution of the Complaint between a member of a designated party or interested person on the one hand, and a Regional Board member or an Advisory Team member on the other hand, unless the communication is copied to all other designated parties (if written) or made in a manner open to all other designated parties (if oral). Communications regarding non- controversial procedural matters are not ex parte contacts and are not restricted. Communications among one or more designated parties and interested persons themselves are not ex parte contacts. Hearing Time Limits To ensure that all participants have an opportunity to participate in the hearing, the following time limits shall apply: Each designated party shall have a combined 20 minutes to present evidence, cross-examine witnesses (if warranted), and provide a closing statement; and each interested person shall have 3 minutes to present a non - evidentiary policy statement. Participants with similar interests or comments are requested to make joint presentations, and participants are requested to avoid redundant comments. Participants who would like additional time must submit their California Environmental Protection Agency a� Recycled Paper Mr. Alan Kapanicas, ACL R8-2009-0068 November 19, 2009 City of Beaumont Page 5 of 8 request to the Advisory Team so that it is received no later than January 14, 2010. Additional time may be provided at the discretion of the Advisory Team (prior to the hearing) or the Regional Board Chair (at the hearing) upon a showing that additional time is necessary. Submission of Evidence and Policy Statements The following information must be submitted in advance of the hearing: 1. All evidence (other than witness testimony to be presented orally at the hearing) that the Designated Party would like the Regional Board to consider. Evidence and exhibits already in the public files of the Regional Board may be submitted by reference as long as the exhibits and their location are clearly identified in accordance with Title 23, CCR, Section 648.3. 2. All legal and technical arguments or analysis. 3. The name of each witness, if any, whom the designated party intends to call at the hearing, the subject of each witness' proposed testimony, and the estimated time required by each witness to present direct testimony. 4. The qualifications of each expert witness, if any. 5. If the Discharger intends to argue an inability to pay the civil liability proposed in the Complaint (or an increased or decreased amount as may be imposed by the Regional Board), the Discharger should submit supporting evidence as set forth in the "ACL Fact Sheet" under "Factors that must be considered by the Board." The Prosecution Team shall submit 15 hard copies of its information and one electronic copy of the information to Advisory Team Attorney David Rice so that it is received by 5 p.m. on December 21, 2009. The remaining designated parties shall submit 15 hard copies of their information and one electronic copy of the information to Advisory Team Attorney David Rice so that they are received by 5 p.m. on January 5, 2010. Any designated party that would like to submit information that rebuts the information previously submitted by other designated parties shall submit 15 hard copies of their rebuttal information and one electronic copy of the information to Advisory Team Attorney David Rice so that they are received by 5 p.m. on January 14, 2010. Rebuttal information shall be limited to the scope of the information previously submitted by the other designated parties. Rebuttal information that is not responsive to information previously submitted by other designated parties may be excluded. If the total amount of information submitted by any party is less than 15 pages, that party may submit the information by email, rather than in writing. In addition to the foregoing, each designated party shall submit (1) one copy of the above information to California Environmental Protection Agency Recycled Paper Mr. Alan Kapanicas, ACL R8-2009-0068 November 19, 2009 City of Beaumont Page 6 of 8 each of the other designated parties so that it is received by 5 p.m. on the deadline specified above. Interested persons who would like to submit written non -evidentiary policy statements are encouraged to submit them to the Advisory Team as early as possible, but no later than January 13, 2010. Interested persons do not need to submit written non - evidentiary policy statements in order to speak at the hearing. In accordance with Title 23, California Code of Regulations, Section 648.4, the Regional Board endeavors to avoid surprise testimony or evidence. Absent a showing of good cause and lack of prejudice to the parties, the Regional Board may exclude evidence and testimony that is not submitted in accordance with this hearing procedure. Excluded evidence and testimony will not be considered by the Regional Board and will not be included in the administrative record for this proceeding. Power Point and other visual presentations may be used at the hearing, but their content may not exceed the scope of other submitted written material. A copy of such material intended to be presented at the hearing must be submitted to the Advisory Team by January 13, 2010 for inclusion in the administrative record. Additionally, any witness who has submitted written testimony for the hearing shall appear at the hearing and affirm that the written testimony is true and correct, and shall be available for cross-examination. Request for Pre -hearing Conference A designated party may request that a pre -hearing conference be held before the hearing in accordance with Water Code Section 13228.15. A pre -hearing conference may address any of the matters described in subdivision (b) of Government Code Section 11511.5. Requests must contain a description of the issues proposed to be discussed during that conference, and must be submitted to the Advisory Team, with a copy to all other designated parties, as early as practicable. Evidentiary Objections Any designated party objecting to written evidence or exhibits submitted by another designated party must submit a written objection to the Advisory Team and all other designated parties so that it is received by 5 p.m. on January 14, 2010. The Advisory Team will notify the parties about further action to be taken on such objections and when that action will be taken. Evidentiary Documents and File The Complaint and related evidentiary documents are on file and may be inspected or copied at the Regional Board office at 3737 Main Street, Suite 500, Riverside, CA 92501 by contacting August Lucas (email: alucasrcowaterboards.ca.pov; phone: 951- 782-7961). This file shall be considered part of the official administrative record for this hearing. Other submittals received for this proceeding will be added to this file and will California Environmental Protection Agency Qs Recycled Paper Mr. Alan Kapanicas, ACL R8-2009-0068 November 19, 2009 City of Beaumont Page 7 of 8 become a part of the administrative record absent a contrary ruling by the Regional Board Chair. Many of these documents are also posted on-line at: ht j. /iwww. aterboards.ca.00v/sgpta na/s-,ublic notices/enforcement actions.shtml. Although the web page is updated regularly, to assure access to the latest information, you may contact Reed Sato (rsato@waterboards.ca.gov). Questions Questions concerning this proceeding may be addressed to the Advisory Team Attorney David Rice (Dgyidrice'owaterboard.ca.cov). IMPORTANT DEADLINES (Note: the Regional Board is required to provide a hearing within 90 days of issuance of the Complaint (Water Code Section 13323). The Advisory Team will generally adhere to this schedule unless the discharger waives that requirement.) November 19, 2009: Prosecution Team issues ACL Complaint to Discharger and Advisory Team, sends Hearing Procedure to Discharger and Advisory Team, and publishes Public Notice. November 30, 2009: Deadline for requests for designated party status. December 7, 2009: Deadline for oppositions to requests for designated party status. December 14, 2009: Deadline for objections, if any, to proposed Hearing Procedure. December 14, 2009: Discharger's deadline for waiving right to hearing. December 21, 2009: Advisory Team issues decision on requests for designated party status, if any. December 21, 2009: Prosecution Team's deadline for all information required under "Submission of Evidence and Policy Statements." California Environmental Protection Agency a a Recq%cled Paper Mr. Alan Kapanicas, ACL R8-2009-0068 November 19, 2009 City of Beaumont Page 8 of 8 January 5, 2010: Remaining Designated Parties' Deadline for all information required under "Submission of Evidence and Policy Statements." January 13, 2010: Interested Persons' deadline for written non -evidentiary policy statements. January 14, 2010- All Designated Parties' deadline for rebuttal information, evidentiary objections, and requests for additional time at the hearing, if any. January 29, 2010: Public Hearing. 1 - � { Kurt V. Berchtold Assistant Executive Officer Regional Board Prosecution Team 1 Date California Environmental Protection Agency Z a Recycled Paper December 1, 2009 C a qty of Beavininit 550 E. (-,rh lover Bt'inmiURC, (-A 92122.3 (951) 76-945 45 7t1 FAX (951) 769452 Enl�Tif: cityhtllftt't-i.l>t�aulnt�lrt.t�l.us WW1•V.t"T,�tt'tT I t 11TUTTC.t-tI.TT ti Mr Robert Ashfield Aquarion Operating Services 1707 S. Averill Avenue San Pedro, CA 90732 Dear Mr Ashfield; Attached is the Administrative Civil Liability Complaint received from the Regional Water Quality Control Board. The Board alleges that the City of Beaumont violated State Water Resources Control Board Order No 2005-0003-DWQ by discharging untreated wastewater (sewage) to waters of the State, for which a penalty has been imposed. This is attributed to the various spills that occurred between March and September 2009. Details of the spills have been addressed in the attachment. As per the agreement between the City of Beaumont and Aquarion Operating Services (AOS), AOS is required to strictly comply with the requirements of the NPDES Permit, and to strictly comply with all other applicable federal, state and county statutes, ordinances and regulations. The City holds AOS responsible for this liability as per contract. The City requests AOS to reimburse an amount of ninety nine thousand nine hundred dollars ($99,900) no later than December 10, 2009. Very yo , CIT F B AUMO Ian Kapanfea`s City Manager Encl: ACL complaint February 8, 2010 C 41 - ty of Beaunwnr ,00 E, 6di Sover t3calltlwut, (-/1 9222-1 i 17517 769 ,5 2=7 FAX 1-951") %t, 9-S.` 2 Flitail: ciflyhf l (�. ti,E��rltl llE�el��Et.tlw Mr. Robert Ashfield Aquarion Operating Services 1935 S. Hughes Way El Segundo, CA 90245 Subject: Notice of Violation of Professional Services Agreement for Operation & Maintenance of City of Beaumont's Wastewater Treatment Facility and Sewer System Dear Mr. Ashfield: Aquarion Operating Services (AOS) is under contract to provide operations, maintenance and management ( OM&M) services to the City of Beaumont ("the Agreement"). These services include maintaining the wastewater treatment plant and lift stations, as well as the sewerage collection systems citywide. These OM&M services require Aquarion to address any permit violations at the wastewater treatment plan, including spills associated with the collection system. The recent spill which occurred on December 18, 2009, at the Marshall Creek. Lift Station is clear evidence of gross negligence on Aquarion's part and violates the Agreement. Here is what we know about the spill and redundancies that were built in to prevent and/or address sewage spills: 1. The Marshall Creek Lift Station has performed satisfactorily for many years without any history of spills. 2. The spill occurred on Dec 181h around noon and the SCADA detected the spill/ pump failure but Aquarion Operations staff failed to read the SCADA indicators that are designed to warn against such occurrences. Thus, the spill was not discovered until the morning of Dec 19`h by which time sewage escaped the confines of the lift station. 3. The hydroranger function that would have triggered the alarm was deactivated. This deliberate removal of hydroranger from normal operating mode was neither brought to City's attention nor had been approved by the City. Clause D.1 a of the Agreement provides: "The Consultant ( AOS) shall perform all routine and preventative maintenance and repair of the Owner's Facilities". Clause D.ld of the Agreement provides: "Compliance with Law: To strictly comply with the requirements of the NPDES Permit, and to strictly comply with all other applicable federal, state and county statutes, ordinances and regulations." Additionally, AOS is required to comply with Clause D. Lb "Implement Best Efforts" and Clause D. Lp "Hold owner harmless from any liability". Based on this information, AOS is hereby notified that, in accordance with the Agreement, AOS is responsible for all costs including, but not limited to, containment, clean up and the other actions that were taken during and after the incident. Also, AOS is liable to remedy the consequences of enforcement actions that are taken by regulatory agencies including, but not limited to, the administrative civil penalties levied by the Santa Ana RWQCB. Furthermore, AOS shall ensure that all permit conditions and provisions are met and violations do not occur at the WWTP, lift stations and the Citywide Sewerage Collection Systems. AOS has 10 days from the date of this letter to remit to the City the previous Administrative Civil Penalty in the amount of $99,900.00. AOS shall also reimburse the City all costs that were incurred by the City prior to the December 18, 2009 spill. A separate bill for these costs will be sent to you as soon as an accounting of the spill related expenses has been completed, as well as any additional ACL imposed by the Santa Ana RWQCB. City Beaumont In Ka_panicas ` City Manager Cc: J.S. Aklufi- City Attorney Carla E. Hjelm Senior Corporate Attorney —Operations 200 Old Hook Road Harrington Park, NJ 07640 TEL 201-767-2886 FAX 201-767-7018 caria.hjelm@unitedwater.com WWW.UNTTEDWATER.COM February 18, 2010 Mr. Alan Kapanicas City Manager City of Beaumont 550 East 6' Street Beaumont, CA 92223 Re: Professional Services Agreement for Operation & Maintenance of City of Beaumont's Wastewater Treatment Facility and Sewer System Dear Mr. Kapanicas: This letter responds to your February 8, 2010 letter to Bob Ashfield. Our specific response is outlined as follows: December 18, 2009 Spill at Marshall Creek lift Station United Water does not agree with the City's statement that the recent spill is evidence of gross negligence and in violation of the Agreement. Our staff has advised of the following: The Marshall Creek station has had prior failures. Our project manager has advised the City in writing that the pumps were going to fail, and had suggested that the City install rental pumps while these pumps were being repaired. The transducer alarm was not disabled by United Water; it was disabled by the City's contractor, so it gave no callout. Additionally, the high level alarm float failed and did not send an alarm to the SCADA system. United Water was on site the same day of the spill and performed a thorough inspection, at which time all systems were working, including the alarm system. United Water did not have input into the City's decisions regarding the repair or replacement of the pumps or the design of the SCADA system. Therefore, United Water cannot assume responsibilities for the costs arising from the above - referenced spill. We also disagree with the interpretation of the Professional Services Agreement as referenced in your letter. This was a clear instance of circumstances beyond the control of United Water. Additionally, since the company was not at fault, the indemnification provisions are not applicable here. Mr. Alan Kapanicas February 18, 2010 Page 2 Prior Administrative Civil Liability Complaint dated November 19. 2009 United Water is not responsible for the above -referenced matter. The Complaint specifically references six lift stations that are not part of United Water's scope of work under the current contract. These lift stations were constructed by developers and had not even been accepted by the City at the time of the contract signing. In fact, we have recently proposed to the City a contract amendment that would allow us to take over the maintenance and operations of the six lift stations. Given that this work was not included in our scope of services, United Water cannot take any responsibility for fines, damages or penalties arising out of the operation of these lift stations. Standing Proposal to Augment Professional Services Agreement Since August 2009, our management has been in negotiations with your Public Works Department to discuss necessary additions to the Professional Services Agreement required to take on these new obligations -- many of which have been at the request of the City. Our latest proposal was presented January 19th. We respectfully ask you to act on this proposal so that we can ensure continued safety and compliance in our contract with the City of Beaumont. Thank you for your attention to this letter. Please note that this letter is subject to a full reservation of rights as to any legal or factual matter. Very truly yours, M�a Carla E. Hjelm Senior Corporate Attorney — Operations cc: Bob Ashfield April 28, 2010 City of Beaummt 550 E. 6th Street Beaumont, CA 92223 (951) 769-8520 FAX (951) 769-8526 Email. cityhall@ci.beaumont.ca.its www, d. bea u m o n t. ca. its Mr. Kurt Berchtold Assistant Executive Officer Regional Board Prosecution Team California Regional Water Quality Control Board Santa Ana Region 3737 Main Street, Suite 500 Riverside, CA 92501 Reference: Administrative Civil Liability Compliance ( ACL # R8-2009-0068) Dear Mr. Berchtold: This is a follow up to a phone conversation between Mike Adackapara of your staff and Hisam Baqai a representative of the City regarding the subject matter on April 14,2010. The City is pleased to inform you that we are going to participate in the study to be conducted by the University of California ( UCR ) that is designed to evaluate the impact of septic tank subsurface disposal systems within the Beaumont ground water basin. We agree with the Regional Board that the results of the Study would potentially benefit the citizens of Beaumont in its efforts to protect its ground water resources. Therefore to satisfy the ACL assessment the City is committed to the following: 1. 50% of the total penalty amount would be deposited in the State's Cleanup and Abatement Account ( CAA ) in the amount of $49,950. 2. The remainder 50% of the total penalty in the amount of $49,950 would be contributed to fund the septic study proposed to be conducted by UCR. The above amount is being paid by two checks one made out to the State Water Resources Control Board- WDPF in the amount of $49,950- and other in the amount of $49,950- payable to the Regents of the University of California. These payments satisfy the ACL # R8-2009-0068 in its entirety. The City of Beaumont appreciates the assistance that you, Mr. Adackapara and your other staff has extended to my staff in this matter. Please contact Dee Moorjani, Director of Public Works at 951-769-8520 should you have any questions or require further information. Very tr" 1-4'-, , I- Led �anAC City Manager cc Michael Adackapara Enclosures : two checks . Ernest A. Egger, AICP, REA eptember 25, 2006 Page 12 should. The Recirculated DER makes no attempt to analyze the fiscal impects of the SOLA. It Notice of L"oimfid COMUn t of in Finally, we want to bring a serious potential conflict of interest to your attention, and request that the City fully consider it in connection with its evaluation of the Prmject We 5 understand that the City has "outsourced" both its internal planning -function and management. of� its wastewater tient plant to the same private company — Urban Logic Com -You are ides d ed as the agent for service of for Urban Logic B onft Recirculated DOR it appears that once of the pwrpofed bmef is o€the Project is its ability. to generate "several hundred af/y of wastewater thaC, can be recycled." (Recirculated DEIR; 3-120) Given your relationshipwith the tot' of the City's wastewater went plant, and the fact That the project is 1 likely t6 increase demand at the wastewater treatment plant, wee think that the Planning Commission, and the Chy_Councii, must carefully evaluate wbeffier either you, or Urban Logic Consultants, stand to receive any financial_beneft Whatsoever from the subject, pwject> Or fiom any fian growth in Beaumont: Until this maw is fully resolved we believe -it critical that you, and any person affiliated With Urban Logic Consultants (or related companies, cease any further hwolvema t in project. analysis or We appreciate your consideration of these comments, and request that you not certify the FM and Recirculated DEW and that you instead engage in the additional analysis required. We also request that you provide us with all notices regarding this project Thank yom Very truly yours, ' WALT BEC President, CVEPG cc: Robert C. Goodman, Esc}. E�NVIRONMENTAI- September 28, 2006 Deepak Moorjani City of Beaumont Director of Public Works 550 East 6th Street Beaumont, CA 92223 Dear Mr. Moorjani, In March of 2006 Mrs. Zuzanna Rand submitted several comments to Wildermuth Environmental, Inc. (WEI) regarding the City of Beaumont's Waste Discharge Permit (NPDES No. CA0105376). One comment concerned the operator of the Beaumont Wastewater Treatment Plant No. 1. The waste discharge permit incorrectly stated Urban Logics Consultants as the operator of the treatment plant. On April 12, 2006 WEI met with the Santa Ana Regional Water Quality Control Board (Regional Board) to discuss Mrs. Rand's comments on the waste discharge permit. The Regional Board acknowledged Aquarian Services Company is the operator of Beaumont's Wastewater Treatment Plant No. 1, not Urban Logics Consultants. However, they declined to change the permit since the comment period on the permit had closed. They also expressed that this error was not important, as the City is the permit holder. Regards, Kristal Davis R 1. Page MI.B. Cite Comment. "This finding is in error. "The Discharger operates Wastewater Treatment Plant No. I through Urban Logic Consultants, a private contractor. " The plant is operated by Aquarian Services Company not Urban Logic Consultants. This needs to be pointed out to the RB staff " Regional Board Response. The Regional Board acknowledges Aquarian Services Company operates Beaumont's Wastewater Treatment Plant. The draft discharge permit was available for download on the Regional Board's website September 19, 2005. Any changes to the draft permit should have been received by the Regional Board prior to adoption on January 18, 2006. The Regional Board will not revise the permit at this time; however, this error is not important, as the City is the permit holder. 2. Page 4.II.H. City Comment. " `The surface water provisions of the amendment are awaiting approval by the U.S. EPA. ' It is stated that the surface water provisions of the Basin Plan Amendment are awaiting US EPA approval, yet more stringent provisions are being applied. How could they be applied if the US EPA has not approved these provisions yet. Regional Board Response. This language was used in the permit because the audience reviewing Beaumont's discharge permit is broader than the City of Beaumont. This permit was reviewed by environmental groups and several public agencies. At the time this permit was written, the new wasteload allocations specified in Table 5-5 of the 2004 Basin Plan Amendment were awaiting US EPA approval. The new provisions were put into place prior to EPA approval because the Regional Board was assured that the new wasteload allocations would be approved. Typically, there is no question of approval when the provisions are stricter than previous provisions. After the permit was written, the Regional Board was informed that the wasteload allocations became effective upon state approval and did not require US EPA approval. City Comment. "This Order implements these provisions, which, for the City of Beaumont, are more stringent than those in the Basin Plan. Why are these limits more stringent for the City of Beaumont? " Regional Board Response. The provisions of Beaumont's discharge permit are more stringent than those of the 1995 Basin Plan and are entirely consistent with the 2004. Basin Plan Amendment and the law. The limits specified in the discharge permit are a reflection of the maximum benefit objectives requested by the City. State Water Resources Control Board Alan C. Lloyd, Ph.D. Division of Financial Assistance Agency Secretary 10011 Street, Sacramento, California 95814 P.O. Box 944212, Sacramento, California 94244-2120 (916) 341-5700 ♦ FAX (916) 341-5707 ♦ www.waterboards.ca.eov JAN 2 7 2005 Mr. Richard Althouse Aquarion Operating Services Company 15 Dartmouth Drive, Suite 300 Auburn, NH 03032 Dear Mr. Althouse: 0 Arnold Schwarzenegger Governor WASTEWATER TREATMENT PLANT CONTRACT OPERATOR, CERTIFICATE OF REGISTRATION, A_QUARION OPERATING SERVICES COMPANY, NUMBER CO -009-1 This letter acknowledges receipt of the annual renewal forms and fee for your Contract Operator Certificate of Registration. Enclosed are eleven certificates. One identifies Aquarion Operating Services Company as a registered Contract Operator. The others identify Aquarion Operating Services Company as registered to operate at Adelanto Wastewater Treatment Plant, Barstow Water Reclamation Facility, Barstow -Daggett Airport Wastewater Treatment Plant, Beaumont Wastewater Treatment Plant, C.V. Kane Wastewater Treatment Plant, Desert Oasis Wastewater Treatment Plant, Edwards Air Force Base Wastewater Treatment Plant, Edwards Air Force Base Research Laboratory Wastewater Treatment Plant, Fairfield -Suisun Sewer District Wastewater Treatment Plant, and Glen Helen Amphitheater Wastewater Treatment Plant. Section 3719.16, Title 23, of the California Code of Regulations requires that you display a valid, site-specific Certificate of Registration at any wastewater treatment plant you operate under contract. Certificates of Registration are not transferable. The original date of issue: March 1, 2003 The next date of expiration: February 28, 2006 The Office of Operator Certification will notify you of renewal at least 60 calendar days prior to the expiration date. However, to avoid a late fee, your application for renewal must be postmarked no later than 30 calendar days before the expiration date. Please keep the Office of Operator Certification informed of any change in your address. If you have any questions, please call me at (916) 341-5731. Sincerely, Sandra L. Malos, Chief Office of Operator Certification Enclosures California Environmental Protection Agency ca Recycled Paper Mr. Richard Althouse -2- cc: 2 - cc: Jack Stonesifer City of Adelanto 11600 Air Express Way Adelanto, CA 92301 Sarah Masterson Edwards AFB AFFTC/PK 5 South Wolfe Ave. Edwards Air Force Base, CA 93524 Bill Ingraham Department of Airports San Bernardino County 29500 National Trails Highway, Box 3 Daggett, CA 92327 Patrick Lendway City of Barstow 220 E. Mountain View Barstow, CA 92311 Deepak Moorjani City of Beaumont 550 E. 6th Street Beaumont, CA 92223 Frank. Sanchez Department of Transportation State of California 1800 Dill Road Barstow, CA 92311 Richard F. Luthy, Jr. Fairfield -Suisun Sewer District 1010 Chadbourne Road Fairfield, CA 94534 Jim Sandifer County of San Bernardino 200 South Lena Road San Bernardino, CA 92415 California Environmental Protection Agency coRecycled Paper YY r r� E•t,, October 2, 2003 Mr. Alam C. Kapanicns City Manager City of Beaumont 5 50 East Sixth Street Beaumont, CA 92223 Subject: Purerk am of Al! of the Issued and 01, Services, Inc. ("ULS") by Aquarion Dear Mr. Kapanicas: g Ca►pitai Shares of Urbxrs Logic Compaap (`Aquadoe) There is currently a contract in existence (the "Avvem�f$ '� between ULS and the City ocaumont, dated February 19, 2002, for the operation and ntenance of the Besumont Wastewater Reclamation Plant and collection system. A copy of the Agre meet is attached hereto. UL S' current shareholders (Messrs. Moocjani, Egger an finalizing the sale of all of ULS's issued and outstaisdin,E tequiresaterits ofthis transaction, Aquarion has requested of certain faits concerning the Agreement and (b) your c shares. Please note that this acquisition will not result in the services are currently provided, and to which you ai I Dillon) ace now engaged in the process of capital shares to Aquarion. As part of tine that ULS obtain from you (a) oonfirmatiozn insent to the proposed We ofULS' capital t change in the nature and manner in which accustomed. Accordingly, by suing below you are hereby confirmingkhe following facts and acknowledging your consent to the change in ULS' ownership and controlI related to the Agreement: The Agreetrnew is in full force and effect and, to ti's best ofyour knowledge, there are no off- sets, couttterrlaims or defaults odsting under the Agreement against ULS. The currents teem of the Agreemat expires December I, 2007, an`d renews for a five year extension on each anniversary date upon satisfactory delivery of sc�viccs in the prior year. 2. The Agreement wiii not be terminated prior to the expiration of its term as a result of the We of ULS' capital shares to Aquarion, and consent hereby given to the change of ownership and control of ULS to the extent that such cons4at is required under the Agreement. There have been made no pre -payments to monies owed to ULS as of this date, with the of $36,302.77. 43317 Ridge Park Drive, Suite 240 • 1 i Tel,: (YO9) 6764944 • Fdrt under the Agreement, and there are no mon of cnrreat receivables in the amount 'a, Cattfornra 92514 676-2034 OCT -08-2003 11:09 9096762054 S5x P.03 Mr. Also C. Kapanicsi October 2, 2003 Page 2 Please acknowledge your agreement with the above by iigning a copy of this letter and returning it to the undersigned - Very truly yours, URBAN LOGIC SERVICES, INC, Deepak 4400d* P:. :E. 1`16ncipal 5%azvv..,.e statements are true and correct as of 44 2003 OCT -08-2003 11:10 9096762064 96% P.04 JUN 1 2 1996 CabEPA Mr. Deepak Moorjani, Principal N 19 Urban Logic Services, Inc. C 96 Pete Wilson State Water 43517 Ridge Park Drive, Suite 200 SPY cteRlf Governor Resources Temecula, CA 92590 Control Board Dear Mr. Moorjani: Division of Clean Water RENEWAL OF WASTEWATER TREATMENT PLANT CONTRACT OPERATOR Programs CERTIFICATE OF REGISTRATION, URBAN LOGIC SERVICES, INC., NUMBER CO -0001 Mailing Address: P.O. Box 944212 Sacramento, CA This letter acknowledges receipt of the annual renewal application and fee for your 94244-2120 Contract Operator Certificate of Registration. Enclosed are two Certificates of 2014 T Street, Registration. One identifies Urban Logic Services, Inc. as a registered contract Suite 130 operator. The other one identifies Urban Logic Services Inc. as registered to operate Sacramento, CA at the City of Beaumont, Wastewater Plant No. 1 . Certificates of Registration are 95814 not transferrable. (916) 2274400 FAX (916) 2274349 The original date of Issue: July 1, 1995 The next date of expiration: June 30, 1997 The Office of Operator Certification will notify you of renewal at least sixty (60) calendar days prior to the expiration date. However, to avoid a late fee, your application for renewal must be postmarked no later than thirty (30) calendar days before the expiration date. Please keep the_Office of Operator Certification informed of any change in your address. Section 3719.16 of the regulations require that you display the valid, unexpired site-specific certificate of registration at each wastewater treatment plant(s). Section 3719.17 of the regulations state that the State Water Resources Control Board may suspend or revoke any Certificate of Registration for good cause. If you have any questions, please contact Mr. Bruce Seno at (916) 227-4488. Sincerely, Richard Wasser, Chief Office of Operator Certification Enclosures cc: Mr. Alan Kapanicas, City Manager City of Beaumont 550 East Sixth Street Beaumont, CA 92223 Recycled Paper Our mission is to preserve and enhance the quality of California's nater resources, and ensure their proper allocation and efficient use for the benefrt of present and fidure generations. r From the Office of: April 21, 1995 city of BF-Ownont 550 East Sixth Street P.O. Box 158 909-845-1171 Beaumont, CA 92223-0158 FAX 845-8483 David Dillon URBAN LOGIC CONSULTANTS, INC. 43517 Ridge Park Drive, Suite 200 Temecula, CA 92590 Dear Mr. Dillon: Enclosed for your files is the executed "original" Professional Services Agreement to operate and manage Beaumont's sewer facilities. One original has also been retained by the City of Beaumont. Please contact me if you have any questions. Sincerely, PATRICK A. SMITH City Clerk PAS/ct cc: J. Aklufi 11 A AKLUFI 8 WYSOCKI Fc ATTORNEYS AT LAW W3403 TENTH STREET. SUITE 610 RIVERSIDE. CALIFORNIA 92501 JOSEPH S. AKLUFI DAVID L. WYSOCKI March 30, 1995 Mr. Patrick A. Smith Interim City Manager City of Beaumont Post Office Box 158 Beaumont, California 92223-0158 Mr. David Dillon Urban Logic Consultants, Inc. 43517 Ridge Park Drive, Suite 200 Temecula, California 92590 TELEPHONE (909) 682-5480 FACSIMILE (909) 682-2619 Re: Agreement to O&M Beaumont's Sewer Facilities Gentlemen: Enclosed to each of you is an "original" Professional Services Agreement for execution. Please have your original appropriately executed and, once executed, forward it to the other party. That way, you will each have a fully -executed, original, Agreement. Of course, if you have any questions or comments regarding the document, including any items of business that I may have over looked, do not hesitate to call me. JSA:dvh Enclosure Best regards, AKLUFI AND WYSOCKI JOSEPH S. AKLUF% Urban Logic Servi, s, Inc. March 21, -1996 Mr. Alan Kapanicas, City Manager City of Beaumont 550 East 6th Street Beaumont, California 92223 RE; Wastewater Treatment Plant Operations. Maintenance and Management Budget Dear Mr. Kapanicas: Pursuant to our recent discussions, please be advised, that, effective April 1, 1996, Urban Logic Services will agree to reduce the above referenced budget by $24,000.00 annually. These savings are attributed to the successful completion of start up operations at the treatment plant, and the expectation that all laboratory testing required by the Regional Water Quality Control Board will be billed to and paid directly by the City. We further expect as a result of the successful start up and our formal request made to the Regional Water Quality Control Board, the City should anticipate on or around July 1, 1996, an agreement to eliminate or reduce the frequency of certain tests which could result in additional annual savings of approximately $18,000. Thank you very much for your consideration of these matters. We look forward to many more years of service to the City and efficient operation of the City Wastewater Treatment Plant. Sincerely URBAN LOGIC SERVICES .f Deepak . loorjani, P.E. Principal cc: Mayor and Council Members 43517 Ridge York Drive, Suite 200 7'i:mecula, Californiu 92590 lel.. (909) 676-1944 - Fax: (909) 676-20.54 City of Beaumont Sewer Enterprise Fund Analysis and Proposal to Provide Operation, Maintenance and Management Services for City Water Treatment Facility and Sewer System Prepared for: The City of Beaumont Jan Leja, Mayor Frank Parrott, Mayor Pro Tem Roger Berg, Council Member Matthew Brey, Council Member Matthew Russo, Council Member Patrick Smith, Interim City Manager Pre pared by: Urban Logic Services February 21, 1995 City of Beaumont Sewer Enterprise Fund Analysis and Proposal to Provide Operation, Maintenance and Management Services for City Water Treatment Facility and Sewer System February 21, 1995 Table of Contents I. Executive Summary Page II. Sewer Enterprise Fund Analysis 2 A. Fund History 2 B. Current Fund Structure and Status 3 C. Proposed Fund Structure 3 D. Operation, Maintenance and Management Cost Projections 8 E. Sewer Standby Charge 8 III. Proposal to Provide Operation, Maintenance I I and Management Services for Water Treatment Facility and Sewer System Appendix A. City Employee Transition Plan B. Certificate of Insurance C. Agreement for Services by Independent Contractor List of Tables Table No. I Rate Stabilization Account Page Table No. 2 Capital Replacement Account 6 Table No. 3 Operations and Maintenance Account 7 Table No. 4 Sewer Enterprise Fund Projections, Scenario A 0 Table No. 5 Sewer Enterprise Fund Projections, Scenario B 10 List of Exhibits Page Exhibit No. I Sewer Enterprise Funds, Proposed Structure 4 Exhibit No. 2 Operations, Maintenance and Management Organizational Chart 14 Exhibit No. 3 Professional Services Agreement, Additional City Benefits 15 I. Executive Summary Executive Summary This proposal and associated documentation provides an analysis of the City of Beaumont Sewer Enterprise fund in terms of the historical impact of major projects and agreements, and in terms of the requirements to fund the operations in the future. Also provided is a comparison of two alternatives with respect to the funding of operations, maintenance and management of the City's new water treatment facility. This documentation provided herein also includes a specific proposal to privatize the operations, maintenance and management of the new water treatment facility. The proposal includes a scope of work which can result in significant direct cost savings of approximately $78,670 per year plus additional services valued of $105,000 which will be provided during the term of the agreement at no cost to the City. Additional benefits of privatizing the operations, maintenance and management of the new water treatment facility will include reduction of potential City liabilities, and benefits related to the familiarity of the professional services team to the City and the new water treatment facilities. lle Sewer Enterprise Fund Analysis ll. Sewer Enterprise Fund Analysis A. Fund History This analysis provides a brief history of the City of Beaumont Sewer Enterprise Fund which has accrued significant charges and extraordinary expenses during the past twenty- five years. These charges and expenses are attributed to several major events described below. Monarch Land Agreement, 1971 In 1971 the City entered into an agreement to provide sewer service to a large development project consisting of approximately 600 units in the unincorporated area of Riverside County. The agreement ultimately resulted in the issuance of 288 sewer connection permits in the County which could have otherwise been reserved for industrial, commercial and residential development in the City. The agreement also contributed significantly to sewer trunk main capacity problems downstream and extraordinary expenses to administer sewer service charges in the unincorporated area. These expenses have been partially addressed by the increased rate structure for the area which was approved by the City in 1993. 2. Assessment District 83-1 In 1983, the City established Assessment District (AD) 83-1 which funded construction of a 12 -inch sewer trunk main and purchased approximately 200 sewer connection permits. The effect of AD 83-1 has been to create significant sewer trunk main capacity problems downstream of where the 12" trunk main ties into the existing system which was inadequate to convey the increased flows. The district purchase of capacity also has required the City to reserve the balance of 100 sewer connection permits for future development in the assessment district, thereby limiting connections in other areas of the City due to a shortage of capacity. 3. Assessment District 92-1 (Sewer Club) Assessment District 92-1 was a project which resulted in a $5.1 Million charge to the Sewer Enterprise Fund. Approximately $3.5 Million of the fund was expended to cover planning, engineering, land acquisition and legal costs related to the aborted formation of a City water company and large assessment district. Funds were also expended to design a 3.0 MGD water treatment facility which was not constructed due to its high cost and financing constraints related to the availability of new sources of water supply. An additional $1.6 Million was expended for the same purposes from landowner deposits. The so-called "sewer club" deposits created an outstanding obligation of $1.6 Million in the fund PA to repay the participating landowners with sewer connection credits. As part of the development agreement process related to CFD 93-1, the City was able to partially shift this liability from the Sewer Enterprise Fund to the Capital Improvement Fund by granting BSF fee credits in amounts equal to landowner deposits in exchange for landowner participation in CFD 93-1 4. Series 1993A Sewer Revenue Bond In 1993, the City issued $8.5 Million in sewer revenue bonds which were funded by sewer service charges. A total of $3.5 Million of the bond issue was refunded through the purchase of water treatment capacity by Community Facilities District (CFD) 93-1. Proceeds from the transactions are currently being used to fund construction of the 1.5 MGD Stage I Expansion of the water treatment facility which was designed to bring the City into compliance with State Regional Water Quality Control Board requirements, and to provide limited additional capacity for new development in the City. The Sewer Revenue Bond also created an obligation for the City to create a Rate Stabilization Fund with a balance of $125,000, and provided contingency funds for sewer trunk main replacement projects that benefit existing residents and businesses. B. Current Fund Structure and Status Currently the Sewer Enterprise Fund consists of a Sewer Service Fund, Sewer Construction Fund and a WWTP Design Fund. As a result of the above referenced history of charges the fund has an accrued balance of approximately $1,058,587. Sufficient funds are available in the Sewer Revenue Bond construction account to complete the new water treatment facility and to replace certain sewer trunk mains which are currently inadequate. C. Proposed Fund Structure In order to comply with State Regional Water Quality Control Board and Sewer Revenue Bond Indenture requirements, it would be appropriate to establish three new funds which are illustrated on Exhibit No. 1. When the new funds are established, it would be appropriate for the City to complete its audit of the Sewer Enterprise Fund and reconcile all previous transactions in accordance with appropriate accounting procedures. Table Nos. 1-3 provide a summary of proposed fund starting balances based upon current fund balance estimates. 3 V) Q) u a� u . uo � J N E c M "I =$0 Q 0 L6 U 'IT _ Q M � (a .Q (B — -�D C Q ::3 /mow — o Q) 4.1 u .� c Z Q 1 ci ai N C D 4-J L6 t o W L LL o W (AQ N L cuCL a� y 00 Lri OD C) C U b4 t6 Qti 00 � CN L O U C C cu CU 0 N m o 7a cu 0 Table No. 1 Sewer Enterprise Rate Stabilization Account Draft Fy 1995-96 Budget Ex Code New Code 1994 Budget Scenario A Scenario B 1995 1995 N/A Pending A. 1993 Revenue Bonds, Series A 0 125,000 125,000 Total Fund $0 $125,000 $125,000 sewer/rtstbfnd 02/15/95 Urban Logic Services Ex Code New Code Table No. 2 Sewer Enterprise Capital Replacement Account Draft Fy 1995-96 Budget 1994 Scenario A Scenario B Budget 1995 1995 4082 A. Depreciation Expense 102,000 0' 0 6040 B. Equipment Replacement 6,764 0 0 Pending C. SRB, Series 1993A Debt Serv. 345,000 345,000 345,000 sewer/caprpfnd (Total Fund $453,764 $345,000 $345,000 ' 1/40 x $7.0 Million 02/15/95 Urban Logic Services Table No. 3 Sewer Enterprise Operations and Maintenance Account Draft Fy 1995-96 Budget 1994 Ex Code New Code Budget 3010-3035 A. Salaries & Benefits $234,331 4003 B. Administrative Overhead 68,533 7,600 C. Utilities 0 4010 0 1. SCE 20,500 4015 1,000 2. GTE 500 0 D. Plant O & M 4020 1. Advertising 125 4025 2. Office Supplies 1,500 4030 3. Dues & Subscriptions 450 4035 4. Travel, Train. & Meet. 500 4053 5. Permits & Fees 7,600 4055 6. Special Dept. Equip. 205 4065 7. Uniforms 300 4070 8. Special Dept. Supplies 13,000 4085 9. Building Supplies & Maint. 1,000 4090 10. Equip. Repairs & Maint. 4,000 j 6020 11. Land Improvements 3,500 E. Line O & M 4054 1. Collection Sys. Maint. 29,000 4075 2. Equipment Rental 200 4083 3. Sewer Cust. Blockage 10,000 F. Vehicle O & M 4043 1. Vehicle Maint. 3,000 4050 2. Fuel & Oil 2,500 G. Contract Services 4052 1. Engineering Services 30,000 4060 2. Laboratory Contract Services 74,000 4080 H. Insurance 22,000 Total Fund $526,744 ' Assumes Operating Engineer $90,000 Superintendent 71,000 Operator 60,000 Quality Control 60,000 Clerical Support 31,200 Overtime 20,000 $332,200 sewer/o&mfnd 02/15/95 Scenario A Scenario B 1995 1 1995 $332,0001 0 81,250 $81,250 110,000 110,000 500 500 100 100 1,500 0 750 0 500 0 7,600 7,600 200 0 1,500 0 10,000 10,000 1,000 1,000 4,000 4,000 0 0 29,000 0 200 0 10,000 10,000 3,000 3,000 2,500 0 30,000 0 74,000 408,480 22,000 1 7,000 $721,600 I $642,930 Urban Logic Services D. Operation, Maintenance and Management Cost Projections Table Nos. 4 and 5 provide a preliminary cash flow analysis of two alternatives related to operation, maintenance and management (OM&M) of the City water treatment facility. The analysis reflects increased costs which are necessary to comply with State Regional Water Quality Control Board requirements for additional personnel at the water treatment facility. The projections also reflect requirements related to increased energy and operation costs, and requirements to fund the Rate Stabilization Fund. Scenario A is based upon the assumption that the City will continue to pay for direct OM&M costs. Scenario B is based upon the assumption that the City will privatize the water treatment facility OM&M responsibilities pursuant to the enclosed proposal. Both projections show a deficit in the Sewer Enterprise Fund which can be addressed as recommended in Section E. E. Sewer Standby Charge Although the City made significant progress in addressing the State Regional Water Quality Control Board requirements with respect to water treatment capacity and quality issues, it should proceed in the establishment of a sewer standby charge on vacant property to address projected OM&M costs which are not related to and can not be funded by sewer service charges. A sewer standby charge would fund operating costs the City incurs to maintain capacity for the benefit of undeveloped properties pursuant to Government Code Section 38902. Table Nos. 4 and 5 project annual sewer standby charges of $250,000 which enable the fund to generate positive cash flow which can be applied to the Capital Replacement Account for Scenario A in 1999 and for Scenario B in 1997. 11 LL ON N 0000 ^ 04 ON OD 000 OMM0000 W co c ca -a MM OLO)O� Z U)� 00 O 0000 M O _C O (o U- a) 0 LOU) O OO LO Li)MOM OO O 0000 Or 0 It M OO LO) O r CO U jr-N ++ U') LO O r M OO r O0 r O) rOr X� °� Q N N LO . 69 V-: 69 69 609. O M J 69 6q 643- �LO(0� 64? C >> a N CO �U)C)U) Opt 't 0000 2!< MM 000 •� OLLOO) LO 0000 � �'` �0� 0 Cn N O 69 6o? 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O(')OM 0000 N N O .` X O LO Ln COLn(O OLfltiN c �O ICTNt Z CU Gi O. w •� M LLC) � O C00 COO LO O O T-:,694 69 613- 60- CU ¢}co O W CU U U (D c = LQ 00 > rn co Ci 60 i ca i co C 06 s Q � U � Ocn � CD -II C a W cu C: ca D C:a) a) U "-' '� Cl) Q CD W J a) m e U) tw D U) U) m e U aa)) oW V% a) a)—w N ��� T a) T W U ca c ca a W 0) a) CD> v O a) a) CU C Z a)( W r o OL p O O m L m W � C) co -J �� m a) W >, —;,�Q W v U < �— W cam ca W n `m m0 E c O � QO a) a) E� E I QUOl~ =uj0U) 2Q w�0 WUcnU z aQmU Ud oQm WQmU Q rn rn r a C: 0 C O N C co Q X W N m cQ 0 CL T r - m Z5 0) a) U) Q LC) m C7 N r 1 N. Proposal to Provide Operation, Maintenance and Management Services for Water Treatment Facility and Sewer System Urban Logic Services, Inc. Februrary 21, 1995 Mr. Patrick Smith, Interim City Manager City of Beaumont 550 East 6th Street Beaumont, CA 92223 RE: Proposal to Provide Operation, Maintenance and Management (OM&M) Services for the City Water Treatment Facility and Sewer System Dear Mr. Smith: Urban Logic Services (ULS) is pleased to provide this proposal, agreement and task order to perform the operation, maintenance and management (OM&M) functions at the City Water Treatment Facility. With regulatory pressures continually mounting, it is a fiscal and management challenge to secure qualified in- house water treatment personnel with the skills and experience necessary for cost-effective treatment plant operations. The City can meet this challenge by contracting with us to provide these services. Keeping the City of Beaumont's goals and objectives in focus we have described the following proposed Operation, Maintenance and Management Objectives in this proposal. The proposal also includes additional services which will be provided at no cost to the City. A. Operating Objectives Provide uninterrupted, economical sanitary sewage transmission service from City customers to the City water treatment plant. 2. Prevent bypass or overflow of sanitary sewage from the transmission system or the treatment plant. 3. Handle and treat sanitary sewage with the intent to meet all NPDES permit requirements. 4. Notify and assist the City in preparing for changes in regulatory requirements and make appropriate and timely recommendations with respect to the need to improve or modify the sewer system and water treatment facilities. 5. Operate water treatment facilities in the most efficient and economic manner possible at all times. 43517 Ridge Park Drive, Suite 200 • Temecula, California 92590 TeL (909) 676-1944 • Fax: (909) 676-2054 Mr. Patrick Smith Februrary 21, 1995 Page two B. Maintenance and Management Objectives I . Protect and preserve the City's capital investment in water treatment facilities and sewer system through implementation of a comprehensive, preventive and corrective maintenance program. 2. Provide operations, maintenance, management, and administrative services required to operate the sewer system and water treatment facility and to implement quality assurance procedures in accordance with legal and regulatory requirements; including performance of necessary laboratory analysis. Proposed services include laboratory testing and analysis for BOD, suspended solids, volatile solids, coliform, settleable solids, chlorine residual, and other tests required by the State Regional Water Quality Control Board. 3. Provide all personnel and associated wages, salaries and benefits to ensure adequate staffing with personnel qualified in technical and administrative support functions. Water treatment facility personnel will meet all regulatory requirements for certification and staffing levels will be maintained as required by the State Water Quality Control Board. (Please refer to Exhibit No. 2.) 4. Provide a plan for the transition of current City employees including compensation, and retirement benefits. During the term of the contract, ULS will not engage in or permit any unlawful employment discrimination based on the race, color, religion, national origin, ancestry, physical handicap, marital status or gender of employees. 5. Provide for consumables such as chemicals, fuel lubricants, and supplies required for normal operation and maintenance of the water treatment facility. 6. Prepare an inventory of spare parts, materials, chemicals and consumables currently on site, within four weeks of assuming responsibility of operations and maintenance of the water treatment facility. Provide recommendations to the City for any changes in inventory. An inventory report will be included with the submission of the annual report referenced herein. 7. Document purchases of new equipment and modification or repair of existing equipment showing the economic basis for the recommendations. Mr. Patrick Smith Februrary 21, 1995 Page three 8. Evaluate water treatment facilities and sewer system annually. ULS will notify the City of specific capital expenditure needs for the replacement and upgrade of structures and equipment; including mechanical, electrical, HVAC, instrumentation, computer and communication systems. 9. Implement computerized maintenance and data management systems. Within 90 days of the award of contract ULS will have the systems installed and fully functional. The maintenance and data management systems will provide a record of each repair for each piece of equipment, control the predictive and preventive maintenance systems and track information required for regulatory reporting; including daily equipment status and exception reports, process control parameters and water quality objectives. Computer hardware and software provided by ULS will become the property of the City after the fifth year of the contract. 10. Maintain a daily log at the treatment facility which includes a general description of duties performed, special problems and occurrences, condition of the process units, unusual conditions, any evidence of shock loads, slug loads or toxic discharges from the treatment facility. 11. Assist the City, as permittee, in satisfying all regulatory requirements. Attendance at meetings and public hearings with City representatives as requested by the City and the State Regional Water Quality Control Board. Provision and acceptance of on-site inspections by City personnel, announced or unannounced, for the purposes of water treatment facility evaluation, and contract adherence. 12. Provide Public Liability and Property Damage Insurance in the amount equal to or greater than $1,000,000 naming the City as an additional insured. 13. Provide the City with a report of operations and maintenance and accounting of expenditures. 14. Provide services required for the transition period leading to the Contractor retaining full operational control of facilities, and as required for water treatment facility "start-up" 15. Provide the City with an annual report to evaluate the capacity and service fees and recommend any necessary adjustment of the fees. 16. Return physical facilities, offices, equipment and appurtenances to the City upon completion of the Contract in the same condition as they were provided to ULS except for normal wear and depreciation. Q) v Q) cn o J -fl U 0 _N a- =3 � q Q) Q) T7=) , �Q cn U Q -E 4-1 N cn Z Q) a rn Y L U N p p C cc cu V V Q a E. O .N O w a�0 O �L- O 0- Z, L) cuO N c c E P N0)c O c O CC Q�.> CCC c c O W IM Exhibit No. 3 City of Beaumont Water Treatment Facility Professional Services Agreement Additional City Benefits Supplemental Services Provided by ULS at No Cost to the City During the Term of the Agreement 24-hour Emergency Over -time Availability, Seven Days per Week Treatment Facility "Start-up Assistance" Public Relations Program Stand-by Charge Rate Study Annual Operations and Rate Reports Full-time Clerical Presence at City Hall Computer System Total Additional Benefits of Professional Services Agreement ✓ Liability Reduction * Sick Leave Accrual * Personnel Administration * Payroll Processing * Liability and worker's compensation insurance cost and exposure reduction Value $20,000 10,000 10,000 5,000 5,000 50,000 5,000 $105,000 ✓ ULS Familiarity with Treatment Facility Design and Construction ✓ ULS Familiarity with City Ordinances, Staff and Procedures Urban Logic Services Mr. Patrick Smith Februrary 21, 1995 Page four 17. Provide ongoing public relations and information services including media relations, plant tours, public meetings and customer service information. We propose to provide the above services for a lump sum annual fee of $408,480.00. This amount will be payable in monthly installments of $34,070.00 with a mobilization advance of $34,070.00 payable with the approval of the agreement. The term of the proposed agreement and task order is for five years, renewable by the mutual consent of both parties. C. Additional Services and Benefits ULS will provide additional benefits and services to the City during the term of the agreement. These additional benefits and services have a value of approximately $105,000 and are described on the attached Exhibit' 3'. Additional benefits related to City liability reduction and ULS familiarity with the water treatment. facility, sewer system and the City in general could result in far greater savings than the additional service benefits. We hope this proposal meets with your approval and look forward to the opportunity of serving the needs of the City of Beaumont. Sincerely, ULC SERVICES INC. David Dillon Ernest Egger, REA. Principal Principal Dee ak € oor'ani, PE � 1 Principal APPENDIX A. City Employee Transition Plan City Employee Transition Plan The privatization of the City of Beaumont water treatment facility OM&M will involve the transition of the two existing employees at the water treatment facility from public to private employment. In accomplishing this transition, the following parameters will be applicable: • Existing salary levels will be maintained or increased. Future increases will occur based upon merit and performance. • Existing health insurance coverage will be matched with equivalent degree of coverage, with similar dependent coverages and co -pay provisions. • Worker's Compensation insurance will be provided in accordance with applicable State laws. • A seven (7) percent contribution will be made by ULS into a self-directed 401(k) or similar retirement plan, equivalent to a public agency's seven (7) percent PERS contribution. • Comparable vacation, sick leave and holiday benefits will be provided. • Uniforms will be provided. • Training and orientation will be conducted as necessary. In adhering to the above parameters, it is believed that an orderly and agreeable transition will occur. Sufficient management time will be taken to provide for a smooth transition and for positive morale. B. Certificate of Insurance TO BE PROVIDED C. Agreement for Services by Independent Contractor AGREEMENT FOR SERVICES BY INDEPENDENT CONTRACTOR Operation, Maintenance and Management of City Water Treatment Facility and Sewer System THE AGREEMENT is made and effective as of the I st day of April, 1995, by and between the CITY OF BEAUMONT ("CITY") whose address is Post Office Box 158, Beaumont, California 92223 and Urban Logic Services, Inc., a legally established corporation, whose address is 43517 Ridge Park Drive, Suite 200, Temecula, CA 92590 ("CONTRACTOR"). RECITALS This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement: A. CITY desires to engage the professional services of CONTRACTOR to perform such professional engineering, operation, maintenance and management services as may be assigned, from time to time, by CITY in writing, for the purpose of operating, maintaining and managing the City Water Treatment Facility and Sewer System (the "PROJECT"). B. CONTRACTOR agrees to provide such services pursuant to, and in accordance with, the terms and conditions of this Agreement, and has represented and warrants to CITY that CONTRACTOR possesses the necessary skills, qualifications, personnel and equipment to provide such services. C. The services to be performed by CONTRACTOR shall be specifically described in one or more written Task Orders issued by CITY to CONTRACTOR pursuant to this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, CITY and CONTRACTOR agree as follows: Term of Agreement. This Agreement is effective as of the date first above written and shall continue until March 31, 2000, unless extended or sooner terminated as provided for herein. 2. Services to be Performedby CONTRACTOR. CONTRACTOR agrees to provide such professional services as may be made in the form of a written Task Order. Each such Task Order shall include, but shall not be limited to, a description of the nature and scope of the services to be performed by CONTRACTOR, the amount of compensation to be paid, and the expected time of completion. 3. CONTRACTOR may, at CONTRACTOR's sole cost and expense, employ such competent and qualified independent professional associates, subcontractors and consultants as CONTRACTOR deems necessary to perform each such assignment. ARTICLE III COMPENSATION 3.01 Inconsideration for the services to be performed by CONTRACTOR, CITY agrees to pay CONTRACTOR as provided for in each Task Order. 3.02 Each Task Order shall specify a total not -to -exceed sum of money and shall be based upon the Schedule of Rates as set forth on Exhibit "A" attached hereto and made a part hereof. Annual (on each anniversary date of this Agreement) rate increases shall be made in accordance with percentage increases as published by the U.S. Department of Commerce for the Producer Price Index for the Los Angeles area or upon mutual agreement of CITY and CONTRACTOR. 3.03 CITY shall pay or reimburse CONTRACTOR for reasonable and necessary equipment replacement, upgrade or decommissioning expenses which are cumulatively in excess of $1,000 per year and/or as mutually agreed to by CITY and CONTRACTOR. 3.04 CITY shall pay all electrical, water, telephone and gas utility costs related to the PROJECT. 3.05 CONTRACTOR shall not be compensated for any services rendered nor reimbursed for any expenses incurred in excess of those authorized in any Task Order unless approved in advance by the City Manager or City Council of CITY, in writing. 3.06 Unless otherwise provided for in any Task Order issued pursuant to this Agreement, CONTRACTOR agrees that payment of compensation earned shall be made in monthly installments within 45 business days after receipt of a detailed, corrected, written invoice describing in reasonable detail, without limitation, the services performed, the time spent performing such services, and the identity of individuals performing such services for the benefit of CITY. Such invoice shall also include a detailed itemization of expenses incurred. ARTICLE IV OBLIGATIONS OF CONTRACTOR 4.01 CONTRACTOR agrees to perform all assigned services in accordance with the terms and conditions of this Agreement and those specified in each Task Order. 4.02 Except as otherwise provided for in this Agreement and in each Task Order, CONTRACTOR shall supply all personnel, supplies and equipment required to perform the assigned services. 3 4.03 CONTRACTOR shall keep CITY informed as to the progress of the work assigned hereunder, by means of regular and frequent consultations. From time -to -time, when requested by the CITY, or as set forth in each Task Order, CONTRACTOR shall prepare written status reports. 4.04 CONTRACTOR hereby agrees to be solely responsible for the health and safety of its employees and agents in performing the services assigned by CITY. Therefore, CONTRACTOR hereby covenants and agrees to: a. Obtain a comprehensive general liability policy in an amount of not less than $1,000,000 per occurrence naming CITY as an additional insured; b. Comply with all applicable local, state and federal laws, rules and regulations/regarding, by way of example and not by limitation, nondiscrimination and payment of wages; agents. C. Provide worker's compensation insurance for CONTRACTOR's employees and Evidence of all insurance coverage shall be provided to CITY prior to issuance of the first Task Order. Such policies shall be issued by a highly rated insurer licensed to do business in California, and shall provide that they shall not be cancelled or amended without 30 days prior written notice to CITY. CONTRACTOR acknowledges and agrees that all such insurance is in addition to CONTRACTOR's obligation to indemnify and hold CITY free and harmless from and against any and all claims resulting in loss, injury or damage to property or persons caused by the negligent acts or omissions of CONTRACTOR in performing services assigned by CITY. 4.05 CONTRACTOR hereby agrees that CITY, its officers and employees shall not be liable for any damage to property, whether real or personal, nor for any personal injury or death caused by, or resulting from, any negligent act or omission of CONTRACTOR. Further, CONTRACTOR hereby 4 agrees to indemnify and save CITY, officers and employees, free and harmless from and against the foregoing liabilities and shall reimburse CITY for all costs or expenses that CITY incurs (including reasonable attorneys' fees) on account of any of the foregoing liabilities, including liabilities by reason of defects in the performance of services pursuant to this Agreement, unless the liability or claim is caused by CITY's negligent act or omission. 4.06 In the event that CITY requests that specific employees or agents of CONTRACTOR supervise or otherwise perform the services specified in each Task Order, CONTRACTOR shall ensure that such individual (or individuals) shall be appointed and assigned the responsibility of performing the services. 4.07 In the event CONTRACTOR is required to prepare plans, drawings, specifications and/or estimates, the same shall be furnished in conformance with local, state and federal laws, rules and regulations. 4.08 In the event CITY is required to obtain an approval or permit from another governmental entity, CONTRACTOR shall assist the City in providing all necessary supporting documents to be filed with such entity. ARTICLE V OBLIGATIONS OF CITY 5.01 CITY shall do the following in a manner so as not to unreasonably hinder the performance of services by CONTRACTOR: a. Provide information, requirements and criteria regarding CITY's PROJECT; b. Furnish all existing studies, reports and other available data pertinent to each Task Order that are in CITY's possession; 5 C. Designate a person to act as a liaison between CONTRACTOR and the City Manager and City Council of CITY. ARTICLE VI ADDITIONAL SERVICES, CHANGES AND DELETIONS 6.01 During the term of this Agreement, the City Council or City Manager of CITY may, from time to time, and without affecting the validity of this Agreement or any Task Order issued thereunder, order changes, deletions and additional services by the issuance of written change orders authorized and approved by the City Council or City Manager of CITY. 6.02 In the event CONTRACTOR performs additional or different services than those described in any Task Order or authorized change order without the prior written approval of the City Council or City Manager of CITY, CONTRACTOR shall not be compensated for such services. 6.03 CONTRACTOR shall promptly advise CITY as soon as reasonably practicable upon gaining knowledge of a condition, event or accumulation of events which may affect the scope and/or cost of services to be provided pursuant to this Agreement. All proposed changes, modifications, deletions and/or requests for additional services shall be reduced to writing for review and approval by the City Council or City Manager of CITY. 6.04 In the event that CITY orders services increased, deleted or reduced, compensation shall likewise be increased, deleted or reduced by a fair and reasonable amount and CONTRACTOR shall only be compensated for services actually performed. In the event additional services are properly authorized, payment for the same shall be made as provided in Article III above. ARTICLE VII CONSTRUCTION PROJECTS: CHANGE ORDERS FOR CONSTRUCTION CONTRACTOR 7.01 In the event CITY authorizes CONTRACTOR to perform construction management services for CITY, CONTRACTOR may determine, in the course of providing such services, that a Change Order should be issued to the construction contractor, or CONTRACTOR may receive a request for a Change Order from the construction contractor. CONTRACTOR shall, upon receipt of any requested Change Order, or upon gaining knowledge of any condition, event or accumulation of events which may necessitate issuing a change order to the construction contractor, promptly consult with the liaison, and City Council or City Manager of CITY. No Change Order shall be issued or executed without the prior approval of the City Council or City Manager of CITY. ARTICLE VIII TERMINATION OF AGREEMENT 8.01 In the event the time specified for completion of an assigned task in a Task Order exceeds the term of this Agreement, the term of this Agreement shall be automatically extended for such additional time as is necessary to complete such Task Order, and thereupon this Agreement shall automatically terminate without further notice. 8.02 Notwithstanding any other provision of this Agreement, CITY, at its sole option, may terminate this Agreement at any time by giving a minimum of 180 days written notice to CONTRACTOR, whether or not a Task Order has been issued to CONTRACTOR. 8.03 In the event of termination, the payment of monies due CONTRACTOR for work performed prior to the effective date of such termination shall be paid within 45 business days after receipt 7 of an invoice as provided in this Agreement. In the event the CONTRACTOR is required to provide services for operational continuity beyond the effective date of termination, the cost for such services should be reimbursed by the CITY in accordance with CONTRACTOR'S prevailing hourly rate schedule. Upon payment for such services, CONTRACTOR agrees to promptly provide and deliver to CITY all original documents, reports and the like which are in the possession or control of CONTRACTOR and pertain to CITY.. ARTICLE IX STATUS OF CONTRACTOR 9.01 CONTRACTOR shall perform the services assigned by CITY in CONTRACTOR's own way as an independent contractor, and in pursuit of CONTRACTOR's independent calling, and not as an employee of CITY. CONTRACTOR shall be under the control of CITY only as to the result to be accomplished and the personnel assigned to perform services. However, CONTRACTOR shall regularly confer with CITY's City Manager and City Council as provided for in this Agreement. 9.02 CONTRACTOR hereby specifically represents and warrants to CITY that the services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily applicable to an experienced and competent professional organization rendering the same or similar services. Further, CONTRACTOR represents and warrants that the individual signing this Agreement on behalf of CONTRACTOR has the full authority to bind CONTRACTOR to this Agreement. ARTICLE X AUDIT; OWNERSHIP OF DOCUMENTS 10.01 All draft and final reports, plans, drawings studies, maps, photographs, specifications, data, notes and all other documents of any kind or nature prepared or developed by CONTRACTOR in connection with the performance of services assigned to it by CITY shall become the sole property of CITY, and CONTRACTOR shall promptly deliver all such materials to CITY. At the CITY's sole discretion, CONTRACTOR may be permitted to retain original documents, and furnish reproductions. If CITY uses such documents for any purpose other than for which they were prepared without CONTRACTOR's prior written approval, CITY hereby waives any claims against CONTRACTOR and will hold CONTRACTOR harmless from any claim or liability for injury or loss arising from CITY's unauthorized use. 10.2 CONTRACTOR shall retain and maintain, for a period not less than four years following termination of this Agreement, all time records, accounting records and vouchers and all other records with respect to all matters concerning services performed, compensation paid and expenses reimbursed. At any time during normal business hours and as often as CITY may deem necessary, CONTRACTOR shall make available to CITY's agents for examination all of such records and shall permit CITY's agents to audit, examine and reproduce such records. ARTICLE XI MISCELLANEOUS PROVISIONS 1 1.01 This Agreement supersedes any and all previous agreements, either oral or written, between the parties hereto with respect to the rendering of services by CONTRACTOR for CITY and N contains all of the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Any modification of this Agreement will be effective only if it is in writing signed by both parties. 11.02 CONTRACTOR shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of CITY. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. 11.03 CONTRACTOR shall comply with all applicable local, state and federal laws, rules, regulations, entitlements and/or permits applicable to, or governing the design, construction, operation and/or maintenance of publicly -owned water treatment facilities. 11.04 If required bylaw, CONTRACTOR shall file Conflict of Interest Statements with CITY. 11.05 Any controversy, claim and/or dispute arising out of or relating to this Agreement shall be resolved by arbitration in accordance with the rules of the American Arbitration Association. IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement as of the day and year first above -written. Iffill CITY: CITY OF BEAUMONT City Manager ATTEST: City Clerk CONTRACTOR: By - - Urban Logic Services, Inc. Urban Logic Services HOURLY RATE SCHEDULE Professional Services: Classification Operating Engineer Senior Associate Plant Superintendent Plant Operator Quality Assurance Technician Executive Secretary Secretary Direct Services and Reimbursement Costs: Professional Sub -Consultant Services - Actual cost plus 15% Outside Document Reproduction and Copying - Actual cost plus 15% In-house Reproduction and Copying - $0.10 per copy Blue Prints - $2.50 per sheet Vehicle Mileage - $0.32 per mile Hourly Rate $100.00 80.00 50.00 milli#, 40.00 35.00 30.00 Consultation in connection with litigation and court testimony will be quoted separately on an individual basis. The above rates remain in effect through December 31, 1995. TASK ORDER Operation, Maintenance and Management of City Water Treatment Facility and Sewer System TASK ORDER NO.: CONTRACTOR: Urban Logic Services, Inc. THIS TASK ORDER is issued pursuant to that certain Agreement for Services by Independent Contractor between the CITY OF BEAUMONT ("CITY") and Urban Logic Services, Inc. ("CONTRACTOR') dated April 1, 1995. A. Tasks to be Performed. The CONTRACTOR shall provide all labor, materials and equipment for the PROJECT to perform the following tasks: I . The CONTRACTOR shall provide operations, maintenance, management, and administrative services required to operate the City water treatment facility and sewer system and shall implement a quality assurance program in accordance with legal and regulatory requirements. The CONTRACTOR shall perform necessary laboratory testing and analysis to determine that the treatment facility performs in accordance with the National Pollutant Discharge Elimination System (NPDES) discharge permit requirements. Testing shall include BOD, suspended solids, volatile solids, coliform, settleable solids, chlorine residual, and other tests required by the State Regional Water Quality Control Board. 2. The CONTRACTOR shall provide personnel and associated wages, salaries and benefits to ensure adequate staffing with personnel qualified in technical, professional and administrative support functions. Assigned personnel shall meet regulatory requirements for certification and staffing levels as required by the State Regional Water Quality Control Board as follows: a. Operating Engineer (625 hrs/yr) b. Senior Associate (416 hrs/yr) C. Plant Superintendent (1,856 hrs/yr) C. Plant Operator (1,856 hrs/yr) d. Quality Assurance Technician (1,856 hrs/yr) e. Clerical Support (1,856 hrs/yr) 3. The CONTRACTOR shall provide a plan for the transition of current City employees including compensation adjustments, and retirement benefits. During the term of the Agreement, the CONTRACTOR will not engage in or permit any unlawful discrimination based on the race, color, religion, national origin, ancestry, physical handicap, marital status or gender of employees. 4. The CONTRACTOR shall provide for consumables such as chemicals, lubricants, and supplies required for normal operation and maintenance. Electrical costs and all other utilities shall be paid by the City directly. 5. The CONTRACTOR shall prepare an inventory of spare parts, materials, chemicals and consumables currently at the water treatment facility site, on or before July 1, 1995, and shall provide recommendations for any changes in inventory to the City Manager or designee to establish appropriate adjustments to the inventory which shall be maintained over the term of the Agreement. 6. The CITY shall provide the CONTRACTOR access to funds for capital improvements and repairs subject to CITY approval. Prior to initiating any capital improvements or repair cumulatively in excess of $1,000.00 per year, the CONTRACTOR shall obtain an approval for access to funds from the CITY, prior to the commencement of improvement or repair. Labor included as part of the CONTRACTOR'S staff, shall not be considered as part of the $1,000.00 unless it is an overtime function or pre -approved by the City Manager or designee. The CITY shall respond or approve all recommendations for improvements and repairs within a reasonable time, except in a situation of emergency when an immediate response will be forthcoming with proper documentation to follow. Capital improvements and repairs shall include but shall not be limited to new inventory, equipment installation or modification, and non -routine or non -repetitive repair of existing equipment required for continuity of system operations, safety and performance. The CONTRACTOR shall document all recommendations for access to funding for capital improvements and repairs in excess of $1,000.00 per year showing the economic basis for the recommendations. All expenditures for capital improvements and repairs shall be recorded and reported to the CITY on an annual basis. 7. The CONTRACTOR shall evaluate all water treatment facility and sewer systems annually. The CONTRACTOR shall notify CITY of specific capital improvement needs for replacing and upgrading structures and equipment; including mechanical, electrical, HVAC, instrumentation, computer and communication systems. 8. The CONTRACTOR shall install computerized maintenance and data management systems and shall within 90 days of project startup have the systems installed and functional. The systems shall provide a record of each repair for each piece of equipment, control the predictive and preventative maintenance systems, and shall track information and system performance required for regulatory reporting including daily equipment status and exception reports, process control parameters and water quality objectives. Computer hardware and software provided by the CONTRACTOR shall become the property of the City on April 1, 2000, unless the Agreement is terminated prior to that date. 9. The CONTRACTOR shall maintain a daily log atthe watertreatment facility which includes a general description of duties performed, special problems and occurrences, condition of the process units, unusual conditions, evidence of shock loads, slug loads or non -permitted discharges. 10. The CONTRACTOR shall assist the CITY, as permittee, in satisfying all regulatory requirements related to NPDES compliance. The CONTRACTOR shall attend meetings with CITY representatives as requested by the CITY and the State Regional Water Quality Control Board, including acceptance of on-site inspections by City personnel, announced or unannounced, for the purposes of water treatment facility evaluation, public relations and contract adherence. 11. The CONTRACTOR shall provide Public Liability and Property Damage Insurance in the amount equal to or greater than $1,000,000 naming the CITY as an additional insured. Such policy shall provide that written notice shall be given forty-five (45) days prior to cancellation of such policy. Upon Approval of the Agreement, the CONTRACTOR shall furnish certificates of insurance (including the Workers' compensation insurance) reflecting such coverage to the CITY for approval and acceptance. 12. The CONTRACTOR shall provide the CITY with quarterly reports of operations and maintenance of the water treatment facility. The reports shall detail the operating conditions of critical water treatment facilities and equipment (including emergency and safety equipment alarms) and general operation and maintenance activities. 13. The physical facilities, office, and all related equipment and appurtenances attached to the water treatment facility and provided to the CONTRACTOR for the term of the Agreement shall N be returned to the CITY upon termination of the Agreement in the same condition as they were provided to the CONTRACTOR except for normal wear and depreciation. 14. The CONTRACTOR shall provide at no cost to the CITY a standby charge rate study, operations and rate annual reports to evaluate the adequacy of fees and charges related to the City Sewer Enterprise Funds, water treatment facility "start-up", services, public relations assistance, and emergency overtime services on a time and materials basis in accordance with Exhibit "A" of the Agreement, not to exceed $105,000 during the term of the Agreement. B. Time of Performance. Time is of the essence. Therefore, CONTRACTOR shall begin work within 5 days of the date this Task order is signed by the CITY, which said work shall be ongoing from April 1, 1995 for a period of five years. C. Liaison of CITY. The City Manager shall serve as liaison between CITY and CONTRACTOR. D. Staff Assignments. CONTRACTOR will assign the following staff personnel to perform the services required by this Task Order unless otherwise approved by the City Manager: I . Water Treatment Facility and Sewer System Management a. Deepak Moorjani, P.E. b. David Dillon C. Ernest Egger, REA 2. Water Treatment Facility and Sewer System Operations a. Larry Laws, Superintendent b. Roger Vesely, Operator C. New Hire, Quality Assurance d. Denise Murray, Clerical Support 5. Compensation. For all services rendered by the CONTRACTOR pursuant to this Task Order, the CONTRACTOR shall receive a total lump sum annual fee of $408,480.00. This amount will be payable in 12 equal monthly installments of $34,070.00 with a mobilization advance of $34,070.00 payable with the approval of the Agreement. The annual fee shall be adjusted annually in accordance with increases in the Consumer Price Index prepared for the Los Angeles area by the U.S. Department of Commerce or as otherwise mutually agreed to by the CITY and the CONTRACTOR. Any time and materials expended on an annual basis in excess of $1,000 as specified in Section 2 of this Task Order shall be approved by the City Manager or CITY, and shall be billed on an hourly basis in accordance with Exhibit A of the Agreement. IN WITNESS WHEREOF, the parties have executed this Task Order on the date indicated below. CITY: CITY OF BEAUMONT By Mayor ATTEST: City Clerk CONTRACTOR: By Urban Logic Services, Inc. AGENDA ITEM No. STAFF REPORT TO: Mayor and City Council Members FROM: Interim City Manager AGENDA DATE: February27, 1995 SUBJECT: Alternatives for Funding the Operation, Management and Maintenance (OM&M) of the City of Beaumont Wastewater Treatment Plant and Sewer System and Consideration of Proposal, Agreement and Task Order to Privatize Sewer Enterprise Operations BACKGROUND: The City's ne,,° wastewater treatment facility is nearing completion, and is expected to become operational ii- April of this year. The facility will result in a substantial upgrade in the quality of treatment ofBeaumont's wastewater, providing a tertiary level of water treatment in accordance with the standards and requirements of the California Regional Water Quality Control Board (RWQCB) acid the National Pollution Discharge Elimination System (N IDES) requirements. The new facility, while facilitating better water ? eatment and a substantial improvement of the plant's effluent, will result in an increase in costs and the need for additional personnel. The need for additional personnel is specifically spelled out in the City's permits for the facility. City staff has conducted a detailed review of the history of the City's Sewer Enterprise Fund and projected costs and revenues with the new plant. This analysis has also included an evaluation of operational alternatives for future plant operations, due to potential revenue shortfalls which are projected by continuing City operation of the facility consistent with past practice. It is beli�,ved that continued operation using exclusively City personnel would create funding shortfalls in future years which could only be offset with further increases in monthly sewer service charges to Beaumont residents and businesses. At the request of the Interim City Manager, Urban Logic; Sen�ices, Inc. (+,1 t.,S), a company af('.,=aiated with Urban Logic Consultants, Inc. (ULC), has provided the City witi�, an analysis of piojected operating costs for the wastewater treatment plant, an evaluation of management and staffing alternatives, and a proposal to privatize the OM&M of the facility by employing the current City wastewater staff and supplementing it with additional personnel as required by the City's RWQCB discharge permit. The information provided and the proposal submitted is summarized and evaluated herein, followed by the Interim City Manager's recommendations. AGENDA ITEm No. Staff Report Wastewater Treatment Plant OM&M Page 2 DISCUSSION AND ANALYSIS: A. Current and Future Sewer Enterprise Fund Status and Structure Currently the Sewer Enterprise Fund consists of a Sewer Service Fund, Sewer Construction Fund and a WWTP Design Fund. As a result of the above referenced' history of charges the fund has an accrued balance of approximately $1,058,587. Sufficient funds are available in the Sewer Revenue Bond construction account to complete the new water treatment facility and to replace certain sewer trunk mains which are currently inadequate. In order to comply with State Regional Water Quality Control Board and Sewer Revenue Bond Indenture requirements, it would be appropriate to establish three new funds. When the new funds are established, it will be appropriate for the City to complete its audit of the Sewer Enterprise Fund and reconcile all previous transactions in accordance with appropriate accounting procedures. Table Nos. 1-3 provide a summary of proposed fund starting balances based upon current fund balance estimates. B. Operation. Management and Maintenance Cost Projections Table Nos. 4 and 5 provide a preliminary cash flow analysis of two alternatives related to operation, maintenance and management (OM&M) of the City water treatment facility. The analysis reflects increased costs which are necessary to comply with State Regional Water Quality Control Board mandates for additional personnel at the water treatment facility. The projections also reflect needs related to increased energy and operation costs, and requirements to fund the Rate Stabilization Fund, a requirement of the City's 1993 Sewer Revenue Bond financing to establish a $125,000 reserve fund. Scenario A is based upon the assumption that the City will continue to pay for direct OM&M costs, including the hiring of an operating engineer, a quality assurance technician and support staff. Scenario B is based upon the assumption that the City will privatize the water treatment facility OM&M responsibilities, consistent with the proposal provided by Urban Logic Services. Both projections show a deficit in the Sewer Enterprise Fund which can be remedied with the implementation of a Sewer Standby Charge on vacant land, which is currently being prepared for City Council consideration in March of 1995. Although the City made significant progress in addressing the State Regional Water Quality Control Board requirements with respect to water treatment capacity and quality issues, it should proceed in the establishment of a sewer standby charge on vacant property to address projected OM&M costs which are not related to and can not be funded by sewer service charges without rate increases to existing customers. A sewer standby charge would fund one-third of the OM&M operating costs the City incurs to maintain one-third of the treatment capacity for the benefit of undeveloped properties pursuant to Government Code Section 38902. Table Nos. 4 and 5 project annual sewer standby revenues of $250,000 (net administrative overhead) which enable the fund to generate positive cash flow which can be applied to the Capital Replacement Account for Scenario A in 1999 and for Scenario B in 1997. The actual sewer standby charge recommendation will address any projected cash Staff Report Wastewater Treatment Plant OM&M Page 3 flow deficits based upon the requirements of the attached City Attorney memorandum dated August 30, 1994. C Urban Logic Services' Proposal for Wastewater Treatment Plant OM&M ULS has provided the attached proposal, agreement and task order to perform the operation, maintenance and management (OM&M) functions at the City Water Treatment Facility. ULS' proposal is based on a series of goals and objectives which are listed below and which were established in accordance with the directives of the Finance Committee, City Manager and Finance Director. Operating Objectives Provide uninterrupted, economical sanitary sewage transmission service from City customers to the City water treatment plant. 2. Prevent bypass or overflow of sanitary sewage from the transmission system or the treatment plant. 3. Handle and treat sanitary sewage with the intent to meet all NPDES permit requirements. 4. Notify and assist the City in preparing for changes in regulatory requirements and make appropriate and timely recommendations with respect to the need to improve or modify the sewer system and water treatment facilities. Operate water treatment facilities in the most efficient and economic manner possible at all times. Maintenance and Management Objectives Protect and preserve the City's capital investment in water treatment facilities and sewer system through implementation of a comprehensive, preventive and corrective maintenance program. 2. Provide operations, maintenance, management, and administrative services required to operate the sewer system and water treatment facility and to implement quality assurance procedures in accordance with legal and regulatory requirements; including performance of necessary laboratory analysis. Proposed services include laboratory testing and analysis for BOD, suspended solids, volatile solids, coliform, settleable solids, chlorine residual, and other tests required by the State Regional Water Quality Control Board. Staff Report Wastewater Treatment Plant OM&M Page 4 3. Provide all personnel and associated wages, salaries and benefits to ensure adequate staffing with personnel qualified in technical and administrative support functions. Water treatment facility personnel will meet all regulatory requirements for certification and staffing levels will be maintained as required by the State Water Quality Control Board. 4. Provide a plan for the transition of current City employees including compensation, and retirement benefits. During the term of the contract, ULS will not engage in or permit any unlawful employment discrimination based on the race, color, religion, national origin, ancestry, physical handicap, marital status or gender of employees. 5. Provide for consumables such as chemicals, fuel lubricants, and supplies required for normal operation and maintenance of the water treatment facility. 6. Prepare an inventory of spare parts, materials, chemicals and consumables currently on site, within four weeks of assuming responsibility of operations and maintenance of the facility. Provide recommendations to the City for any changes in inventory. An inventory report will be included with the submission of the annual report referenced herein. 7. Document purchases of new equipment and modification or repair of existing equipment showing the economic basis for the recommendations. 8. Evaluate water treatment facilities and sewer system annually. ULS will notify the City of specific capital expenditure needs for the replacement and upgrade of structures and equipment; including mechanical, electrical, HVAC, instrumentation, computer and communication systems. 9. Implement computerized maintenance and data management systems. Within 90 days of the award of contract ULS will have the systems installed and fully functional. The maintenance and data management systems will provide a record of each repair for each piece of equipment, control the predictive and preventive maintenance systems and track information required for regulatory reporting; including daily equipment status and exception reports, process control parameters and water quality objectives. Computer hardware and software provided by ULS will become the property of the City after- the fifth year of the contract. 10. Maintain a daily log at the treatment facility, including a general description of duties performed, special problems and occurrences, condition of process units, unusual conditions, any evidence of shock loads, slug loads or toxic discharges from the treatment facility. 11. Assist the City, as permittee, in satisfying all regulatory requirements. Attendance at meetings and public hearings with City representatives as requested by the City and the State Regional Water Quality Control Board. Provision and acceptance of on-site inspections by City personnel, announced or unannounced, for the purposes of water treatment facility evaluation, and contract adherence. Staff Report Wastewater Treatment Plant OM&M Page 5 12. Provide Public Liability and Property Damage Insurance in the amount equal to or greater than $1,000,000 naming the City as an additional insured. 13. Provide the City with a report of operations and maintenance and accounting of expenditures. 14. Provide services required for the transition period leading to the Contractor retaining full operational control of facilities, and as required for water treatment facility "start-up". 15. Provide the City with an annual report to evaluate the capacity and service fees and recommend any necessary adjustment of the fees. 16. Return physical facilities, offices, equipment and appurtenances to the City upon completion of the Contract in the same condition as they were provided to ULS except for normal wear and depreciation. 17. Provide ongoing public relations and information services including media relations, plant tours, public meetings and customer service information. ULS Proposal Terms ULS proposes to provide the above services for a lump sum annual fee of $408,480.00. This amount is $78,670.00 less than the confirmed estimated costs associated with operation with municipal employees based on 1994 budgeted costs, and assuming the required new hires. This is confirmed by a general rule of municipal budgeting which estimates approximately $100,000 in costs for each employee. The proposal is further confirmed by a comparison of local contract service costs for similar tasks. The proposed fee is highly competitive and includes all costs related to the operation, maintenance and management of the City treatment facilities and sewer system, excepting those budgeted for customer damage and for equipment replacement costs in excess of $1,000.00 which are not the direct responsibility of the contractor. The fee would be payable in monthly installments of $34,070.00 with a mobilization advance of $34,070.00 payable with the approval of the agreement. The term of the proposed agreement and task order is for five years, renewable by the mutual consent of both parties. In their proposal, ULS also offers to provide additional benefits and services to the City at no cost during the term of the agreement. The proposal indicates that these additional benefits and services have a value of approximately $105,000.00. The total projected cost savings to the City for the duration of the proposed five-year agreement is estimated at $395,015.00, or approximately $79,003.00 per year, not including the "additional benefits and services". With the additional services included, savings would equal approximately $100,003 per year. Finally, the City would also experience significant reductions in exposure to liability as a result of the insurance provided by ULS, and the reduction in the number of City employees. Staff Report Wastewater Treatment Plant OM&M Page 6 ULS is the most qualified potential entity to operate the treatment facility. ULS' principals have been actively involved in managing the financing, permitting, design and construction of the new facility and have had supervisory responsibility over the existing City wastewater staff for more than one year. A comparison of ULS' proposed terms to the contract which the City of Banning has established with Montgomery Watson indicates that ULS' costs are lower and the breadth of services to be provided far exceeds those provided for Banning. These factors, when combined with a long- term commitment to make key ULS staff available in excess of RWQCB requirements to assist the City in these and other matters, and the ability to provide the City staff with equal or improved compensation and benefits, further qualifies ULS for operation of the City treatment facility. Public Employee Transition and Absorption The privatization of the City of Beaumont water treatment facility OM&M in accordance with the proposed agreement would involve the transition of the two existing employees at the water treatment facility from public to private employment. In accomplishing this transition, the following parameters would be applicable: Existing salary levels would be maintained or increased. Future increases would be base on merit and performance. Existing health insurance coverage would be matched with equivalent degree of coverage, with similar dependent coverages and co -pay provisions. Workers compensation insurance would be provided consistent with State law. A seven (7) percent contribution would be made by ULS into a self-directed 401 (k)or similar retirement plan, equivalent to a seven (7) percent PERS contribution. Vacation, Sick Leave and Holiday benefits prevailing in competitive commercial environmental would be provided. Uniforms would be provided. Training and orientation would be conducted as necessary. In adhering to the above parameters, it is believed that an orderly and agreeable transition is possible and the support of the two current City employees would be gained. FISCAL CONSIDERATIONS Acceptance of ULS' proposal and approval of the agreement would constitute a five-year commitment on the part of the City for funding from the Sewer Enterprise Fund. The proposed Staff Report Wastewater Treatment Plant OM&M Page 7 agreement would reduce City costs associated with the operation of the treatment facility by approximately $79,000 per year over the five-year contract period, thereby, when combined with the implementation of a standby charge, precluding the need to consider monthly sewer fee increases. The City would also benefit from the tangible and intangible "additional benefits" provided as described herein and in the proposal. The City's current and anticipated budget policy is to provide its citizens with the highest quality and most cost-effective services possible, whether such services are provided by municipal employees or by private contractors. The City has already enhanced productivity and has reduced costs in several areas by using private contractors, including finance and accounting, administration, transcription services for the Police Department, planning, economic development and public works. It is believed that the implementation of the recommendations which follow will result in similar improvements in service and cost savings, without resulting in the loss of employment for long-standing and valued City employees. RECOMMENDATION: The proposal provided by ULS is well thought out and would provide the City with substantial savings as compared to continued operation with municipal employees, with an annual savings of approximately $78,670. Several other tangible and intangible benefits would also be realized by the City, including full-time clerical assistance at City Hall and the continual around the clock availability of ULS personnel. All of the services provided. by ULC over the past two years have been documented to be cost-effective and of the highest professional caliber. It is recommended that the City Council authorize staff to prepare a recommendation to implement a sewer standby charge on vacant parcels in accordance with the direction of City Attorney Memorandum dated August 30, 1994, and approve the agreement and task order, authorize the Mayor to execute the agreement and task order with Urban Logic Services, Inc. and, direct the Interim City Manager to work closely with the City Attorney, Finance Director and ULS in the transition of the City's two existing wastewater employees to private employment in an orderly manner. Respectfully Submitted, Patrick Smith Alan Kapanicas Interim City Manager Finance Director Enclosures: - City Attorney Memorandum dated August 30, 1994 - Tables - ULS OM&M Proposal FEB -24-1995 08:40 FROM URBAN LOGIC CONSULTANTS AUG 31 '94 `:40 Ary -um F3 WYSOCKI !1TT Rfl E A � LAW W349-j TV.NTH STREM SUITE 6110 `- IIrvF1%jJVE. CALIFOP.NIA 92901 MEMORANDUM TO: r1toM: RE: DATED: CITY MANAGER CITY ATTORNEY TO CITY MGR-BMNT P.02 PAGE .01 JOSEPH S. ARLIIFI TlLEPMONI DAWD L. WYSOCKI (910V1 66a�10 FACSIMILE 19091 eE9- It I i PROCEDURES TO ADOPT AN ANNUAL SEWER SERVICE STANDBY CHARGE, AS AUTHORIZED BY GOVERNMENT CODE, SECTION 38902 AUGUST 30, 1994 I am responding to your question concerning the procedures to bt followed in order to adopt an annual sewer service standby charge. The following is an outline of the general steps: 1. Determine the purposes for which the charge will be collec�ed and develop a preliminary budget. The primary purpose of standby charges is two-fold:to stem as reserve and to of ready capital to expand Y 1 defray the operation, maintenance and replacement costs associated with maintaining unused capacity in the system :to assure its availability as demand occurs. 2. Determine the area or areas within the city that the chargls is to be levied. The law allows groat flexibility in thiel regard. A flat fee imposed on every parcel in the city iso one example, another is a schedule at varying amounts according to land uses and the degree of availability or quantity of use that a particular demand may generate. Same agencies only levy the charge against vacant parcels others levy charges on all parcels, sometimes in lesoer amounts with respect to undeveloped properties. Areas of the City that may benefit significantly more from the sewer system pray " charged a greater amount, while lesser -benefiting areas could be charged a lesser amount or nothing ("zones of benefit"". 3. Notice of a public hearing must be given by the City clergy and must contain a copy of the proposed resolution or , ordinance adopting the standby charge, and the notice mush be published at least once a week for two weeks prior to tries public hearing, the first publication at least 15 days prior to the date of the hearing. 92 P-01 0i AUG --31-1994 10:40 FEB -24-1995 08:40 FROM URBAN LOGIC CONSULTANTS TO CITY MGR-BMNT P.03 i 38902. Annual Nes Oce standby or immediate *rallablilty cheergew.- Authorization to fix: rata bughemnt of schedules, collectsom. a tee. A city may fix an annual w service standby or immediate availability charfe to be app hev,n an area, or frontssre or percd basis, or A COInbin■tion thereof, within the city to be chaigtd to such areae to which sewer werviec is m*dc available for any purpose by the City, whether the sewer Service is actuatly used or not. Tito city may establish schedulm varying such char a accorrliAg to the land usea And the degree of availability or quantity of use of such sewer servioe to the needed lands, and way restrict such sham city. e to lands lyhls within one or more zones or #sVns ne8 of bcts e�•tablashed within such The city may collect the standby or availability cwargr. by billing the charged la:kth on a fiscal year bask or by outer mma available The city may collect the standby or aysilaibility charge as aof the aahual county tax bill provided the city furnishes in writing to t�e board of etuperviscmra and to the county auditor the deecripdon of such 1 for which a charge is to be billed together - fhe amount of the ml aapplivable to each parcel in sufficiem time to meet the schedule established by the county for inclusion of such items on the county general tax bill. The parcel description may be the pwcd number mmigeted by the county assessor to the parcel. in such cat% the standby or ava o.ability charge; shall become a Caen eyaimt the Parcel of land to which it ig charged in the same mariner as the County general Wes. Penalties may be collected for late Payment of the standby or availability charge or the amount thereof unpaid its the Manner and at the same rates as that applicable for late: payment or the Mlount thereof unpaid of county general taxes. If the city Colle ds statidby charges through the county general tax bill, the amount of the standby eheurge and any applicable penalty shall be stated on the tax bill separately from all other taxes, if practicable W r^ !� 3Y74-3 AUG -31-1994 10-41 u.* Ti-jTAL. PAGE.03 M -I 91% 1 P.03 TOTAL P.03 C MAR -02--1995 15:57 FROM URBAN LOGIC CONSULTANTS TO PLANNING - BMNT P.01 ^ -,ACR^. INTO 69FIC6 VICE CHAIRMAN STATE CAPITOL OF HEALTH 8t HUMAN SERVICES Room 4052 SACRAMENTO. 958t4 (faliforitia .LGL 'Utt ! BUDGET & FISCALREVIEw 191fi)44s•979781 FAX (9 1 6) 447-9008 v4tatr EDUCATION bISTRICT OFFICES SENATOR 6>34O INAVENUE RAYMONN. HAYNES RAYMOND N. GOVERNMENTAL ORGANIZATION SUITE 275 R4VERSIVE, CA 92506 THIRTY-SIXTH SENATORIAL DI$TR STATE CHAIRMAN t909t 782.41 1 1 AMERICAN LEGISLATIVE PAX (9091 276.4462 EXCHANGE COUNCIL 27349 JgFFEFtSON AVENUE STATE CO-CHAIR SUITE 201 92990 k} CALIFORNIA CONFERENCE TENIECULA. CA tS �' 1 OF THE FAMILY 9091693.0286 FAX 19091 693•C466 February 22, 1995 Mrs. Jan Leja 99 Ramsey, P.O. Sox 998 Beaumont, OA 92223 Clear Mrs. Lej a Enclosed please find a news release from the Reason foundation regarding the privatization of city services. In light of increasing costs for these services, I thought you would find the report very interesting. During these times of rising government costs and decreasing sources of revenue, it is imperative that we do whatever possible to reduce the scope of government at all levels. what better way to do this than to privatize the services that could be contracted out without detriment to the community at large. I would appreciate any comments you may have regarding the study. If I or my staff can be of any assistance in this matter or any ether involving the state, do not hesitate to contact me. � ours, R.AYMO N. A SES RNH/jm 14, MAR -02-1995 15:58 PROM URBAN LOGIC CONSULTANTS 1V V Rvason Foundation FOR MedEDYATE RELEASE TO PLANNING — BMNT P.02 v L* %P - v Contact: Rich Phillips (310) 391-3245 Los Angeles Could Save $120 million annually dry Privatizing Citi Services, report Finds NOVEIMBER 14. 1994 — LOS ANGELES, Calif. The city of Los Angeles could save nearly $120 million annually by contracting the management and operations of city services out to private Companies, according to Competitive Government for a Competitive Los Angeles, a report released by the Reason Foundation's Privatization Center with assistance from the USC Graduate School of Public Administration.. The report comes at a time when worries about crime and political pressure to put a promised 3,000 additional police officers on the city streets is mounting. According to William Eggers, project director for the report, "Los Angeles faces a $200-5300 million budget deficit next year, and finding the additional $75,000 per police officer will be difficult. By adopting the recommendations set forth in our report, Los Angeles could put an adWdonal 1,600 police officers on the city streets." , Competitive Government for a Competitive Los Angeles argues that cities across the country and around the world are privatizing city services. The report claims that since 1989, Chicago Mayor Richard tri. Daley has brought competition to about 40 services with savings totalling tens of millions of dollars annually. Likewise, ?Mayor Stephen Goldsmith of Indianapolis has privatized nearly 60 city services for an- annual savings of S28 mullion. According to the report, Los Angeles could save four times that amount [See Table 11. 3415& .Sepulveda Blvd, Suite 400, Los Angeles, CA 90034 / (310) 391224S MAR -02-1995 15:5e FROM URBAN LOGIC CONSULTANTS TO PLANNING - BMNT P.03 Los Angeles Could Save 5110 million annually by Privatising City Services- report finds Page 1 of 3 TABLE 1 Estimated'.Annua! Cost: $ vinzs• of� Coln etitive: Government to Los Au glee P g Service Dollar Savings (Millions) Percent Savings Building Maintenance/ Custodial Services B $2.2 28% Emergency Medical Services 30.7 67% 3.5 NIA Golf Courses Pa. -king Enforcement 19.0 NIA Trash Collection 42.0 27% Workers' Compensation 22.4 24% 0 Zoo $119.8 NIA TOTAL For example, privatization of trash collection, the third largest item in Los Angeles' general fund, would yield an estimated 27 percent savings, or $42 million annually. Based on contractor cost from other nearby cities with similar demographies, monthly- residential -rates - are between S9 and $15 per unit where, in Los Angeles, units are allocated approximately $21 per month. The report recommends a please -in of competitive bidding to subsets of the city's total residential units in addition to improving vehicle maintenance patterns. The report also claims that Los Angeles is among the highest cost cities iu the ration when it comes to Emergency Medical Services (EMS)- Its total cost per patient transported is $476, compared with $160 per transport in other cities with high-performance systerns. With high costs and low collection rates, the .net result is a high taxpayer subsidy in Los Angeles. To achieve savings of 67 percent, the report recommends the city develop a public-private partnership with the fire department and private ambulance services, move from a mixed Advanced and Basic Life Support (ALSIBLS) fleet to an all -paramedic - ambulance fleet, and develop stringent contractual provisions in order to guarantee lower costs and quality service. MHH-02-1995 15:59 FROM URBAN LOGIC CONSULTANTS TO PLANNING - BMNT P.04 Las AnV19$ Could Save $110 million mnual v by Prrvat=g City Services, report finds Page 3 a f3 In addition, the report outlines privatization recommendations for workers compensation, parking enforcement, the city zoo, golf courses, building maintenance and custodial services, as well as Los Angeles International Airport, the Department of Water and Power, and the Convention Center. "Privatization- has-bam.a.:volatile, issue -in. Los..Anples,, with:highly charged' rhetoric emanating from both sides of the debate," says Eggers- "Rather than reflexively opposing any d:st-agAon of compcIdton and *t ;a&zdbn;. a inoTe=bal i -2PP. nch for pnivad=doa skeptics would be to evaluate each competitive bidding project --on its individual merit Keeping an open mind to introducing competition into city services will help to ensure that Los Angeles' elected officials fulfill the obligation they have to taxpayers to not waste their hard-earned tax dollars.,, Competitive Government for a Competitive Los Angeles is the Reason Foundation's latest report on competitive contracting and privatization. principal financial support consisted of grants from the Howard. Jarvis Taxpayers Foundation and the Lynde and Harry Bradley Foundation. Additional studies by the Reason Foundation include Guidelines for Airporr Privari:ation, Intergovernmental Contracting for Public Services, Rightsizing Government. Lessons from .4merica's Public Innovators, and Prtvatization for Public Employees: Guidelines for Fair Treatment. Copies of each study may. be obtained by calling the Reason Foundation at (310) 391-2245. The Reason Foundation is the only national public policy research organization outside Wmhington. DC, with proven expertise in state and local policy, providing policymakers with, practical. market-based solutions they can use. Solid scientific research and a fresh perspective from outside -Washington have earned Reason the reputation for balanced and influenda.l policy analysis. In addition to policy studies, the Foundarion also publishes Reason. a national political commentary magazine. and operates the Privatization Center. the nation's leading resource for policymakers seeking solutions on how to streamline government. TOTAL P.04 Table No. 1 Sewer Enterprise Rate Stabilization Account Draft Fy 1995-96 Budget 1994 Scenario A Scenario B Ex Code New Code Budget 1995 1995 N/A Pending A. 1993 Revenue Bonds, Series A 0 125,000 125,000 Total Fund 1 $01 $125,0001 $125,000 sewer/rtstbfnd 02/15/95 Urban Logic Services Table No. 2 Sewer Enterprise Capital Replacement Account Draft Fy 1995-96 Budget Ex Code INew Code 4082 A. Depreciation Expense 6040 B. Equipment Replacement Pending C. SRB, Series 1993A Debt Serv. Total Fund 1/40 x $7.0 Million 1994 Scenario A Scenario B Budget 1995 1995 102,000 01 0 6,764 0 0 345,000 345,000 345,000 $453,7641$345,000 1 $345,000 sewer/caprpfnd 02/15/95 Urban Logic Services Ex Code 3010-3035 4003 4010 4015 4020 4025 4030 4035 4053 4055 4065 4070 4085 4090 6020 4054 4075 4083 4043 4050 4052 4060 4080 New Code Table No. 3 Sewer Enterprise Operations and Maintenance Account Draft Fy 1995-96 Budget 1994 A. Salaries & Benefits $234,331 B. Administrative Overhead 68,533 C. Utilities 7,600 7,600 1. SCE 20,500 1,500 2. GTE 500 D. Plant O & M 1,000 4,000 1. Advertising 125 0 2. Office Supplies 1,500 200 3. Dues & Subscriptions 450 10,000 4. Travel, Train. & Meet. 500 2,500 5. Permits & Fees 7,600 6. Special Dept. Equip. 205 7. Uniforms 300 8. Special Dept. Supplies 13,000 9. Building Supplies & Maint. 1,000 10. Equip. Repairs & Maint. 4,000 11. Land Improvements 3,500 E. Line O & M 1. Collection Sys. Maint. 29,000 2. Equipment Rental 200 3. Sewer Cust. Blockage 10,000 F. Vehicle O & M 1. Vehicle Maint. 3,000 2. Fuel & Oil 2,500 G. Contract Services 1. Engineering Services 30,000 2. Laboratory Contract Services 74,000 H. Insurance 22,000 Total Fund $526,744 ' Assumes Operating Engineer $90,000 Superintendent 71,000 Operator 60,000 Quality Control 60,000 Clerical Support 31,200 Overtime 20,000 $332,200 Scenario A Scenario B 1995 1 1995 $332,0001 0 81,250 $81,250 110,000 110,000 500 500 100 100 1,500 0 750 0 500 0 7,600 7,600 200 0 1,500 0 10,000 10,000 1,000 1,000 4,000 4,000 0 0 29,000 0 200 0 10,000 10,000 3,000 3,000 2,500 0 30,000 0 74,000 408,480 22,000 7,000 $721,600 I $642,930 sewer/o&mfnd 02/15/95 Urban Logic Services CD CD z CD X a 0 C iV r 0 le. cn CD 0 CD CA cn co c CD cn v a 0 v co cD m x a 0 o' 0 D a CD cn b9 D N cn W O CA -i C� ao D z oo D 0 D D C� CD D Z D 0 co D Z ccp c m �O-P, CD 0 CD v v r- m 303 CCD CCD mm� -_ cr � 0��2. � -0 0 CDm c�c� cc0 v0 �5CD0m -A cn x m CD CD m 0o 00 r_.- < �n rCo 0 m CD o o� Cfl X =r m v� � z Cp0 WC_ vv- �. m0 -n C XN v v m CD 0' CD 0) m�mmm Cl) m �m� 0 Co .� .. 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CO O CO OF, -40-4 O N W O OOCY) (.0 CA 69-69 4 N CN) Cfl N O N -P.- -P 00 O 00O N 40-1 :-4 :9h, MOU7 COW C Cl) V //�� (D / .69-69-69 O o0 cn a. 9DO OF, .P a)00') ON W O W 0 W Cfl _N O O V v -69 N_ CA OD W O N N v N W N O W OD M O m CSI O O 0000 0000 -69 to OD W — N O V N CSI O O O O O O O O O O O O O fA -69 C.nCn00 Cfl OD -P.- -P C4 4 N CTI CA CO CO O C Cl) V //�� (D / �0 O o0 � Cr a. a) OF, a -69 N -4 � Cfl _ N CD -n CA O CSI CSI (0 ~ O O O 102 -4 -4 O fig O W Cfl OOD UUi O OD OD O O O O ffl O CO CO (n Cfl N N O N O N C CD C/) CD \cDV C Cl) V //�� (D / �0 16JWM0 CD :3 -ti � Cr a. a) OF, CD O�,O a) 0 N. C 3 O _ N CD -n CA CD _ r -r T CL 102 CD. n O From the Office of: April 13, 1995 L't t Of BEaUnWnt 550 East Sixth Street P.O. Box 158 909-845-1171 Beaumont, CA 92223-0158 FAX 845-8483 Mr. Deepak Moorjani, P.E. Principal URBAN LOGIC CONSULTANTS 43517 Ridge Park Drive, Suite 200 Temecula, CA 92590 Dear Mr. Moorjani: On Monday, April 10, 1995, the Beaumont City Council approved your proposal to provide the City of Beaumont Wastewater Treatment Plant with a Title 22 Engineering Report on plant reliability. An original executed document is provided for your records. Please contact me if you require further information. Sincerely, PATRICK A. SMITH City Clerk PAS/ct Agenda Item Staff Report To: Mayor and City Council Members From: Interim City Manager and Finance Director Date: April 10, 1995 Subject: Award of Contract to Prepare Title 22 Reliability Report .. ..........ININININININ lmwwwww .... AW1WE1WN1WN www.. Background: The City has been working closely with the State Regional Water Quality Board to bring its sewer enterprise operation into compliance with its operational permit. The permit established what are termed as "Title 22" requirements for the operation of the City waste water treatment plant. As of this date, all of the compliance efforts were included in the original budgets established for the Sewer Revenue Bond Project including the construction of the new waste water treatment plant. On September 15, 1995, however, the Regional Board requested that the City prepare an additional engineering report to certify the reliability of the treatment process upstream of the ultra. violet disinfection unit and of the reclaimed water distribution on site. The request for an additional engineering report was reviewed with officials of the RegionW l Board during two construction inspections in an effort to focus the scope of work on specific areas of the new plant and treatment process. These meetings resulted -in a defined scope of work which also addresses safeguard and contingency procedures related to specific plant components and procedures such as the acid bath wash unit and the possible use of chlorine disinfection to control algae. The scope of work was then transmitted for bid to three engineering contractors who have performed engineering services and prepared reports for the City waste water treatment plant expansion. Fiscal Impact: The bids that were received ranged in price from $24,280 to $28,000. Funding for the engineering report is available from the Sewer Revenue Bond contingency budget and no General Fund revenues will be required. Agenda Item Recommendation: The City Manager and the Finance Director have reviewed the three bids that were received and recommends that the City Council authorize the City Attorney to prepare a contract with the lowest qualified bidder, and authorize the Mayor to execute the contract. Respectfully Submitted, Patrick A. Smith, Interim City Manager Alan C. Kapanica terim Finance Director enclosure 1RGS 1J Engineering S Geology March 31, 1995 P.O. Box 11923 • San Bernardino, California 92423 (909) 793-7442 Director of Public Works City of Beaumont 550 E. Sixth Street Beaumont, California 92223 SUBJECT: TITLE 22 ENGINEERING REPORT ON PLANT RELIABILITY Waste Water Treatment Plant Expansion City of Beaumont, California Dear Director: Thank you for the opportunity to provide this proposal to prepare a Title 22 Engineering Report on your new Wastewater Treatment Plant Expansion specifically addressing plant reliability and redundancy. Based on our understanding of the requirements for this report, and brief discussions with the regional water quality control board, we anticipate the subject report will contain the following information.- Wastewater nformation: Wastewater Quality Criteria • Description of Treatment Processes • Plant Reliability Information, including: ► Emergency storage capabilities ► Analysis of each unit process reliability features ► Discussion of alarm features and automated provisions ► Standby power capabilities ► Analysis of the frequency, duration, and impact of power failures within the last five years ► Hydraulic capabilities to bypass unit process ► Description of existing safeguards • Operation and Maintenance Information, including: ► Discussion of personnel ► Preventative maintenance program ► Spare parts availability ► Records and reports required ► Samples and testing analyses required • Geologic • Fault/Seismic • Environmental • Percolation Evaluations Studies Assessments Testing Mr. Deepak Moorjani March 31, 1995 Page 2 Preventative and Contingency Plan ► Identification of possible sources of accidental loss, untreated waste bypass, and contaminated discharges Description of facilities and procedures for effective preventative and contingency plans Evaluation of effectiveness of facilities and procedures Our report is intended to address and/or comply with each of the following requirements: • State request for the submittal of an Engineering Report as requested ion the Regional Water Quality Control Board's letter of September 15, 1992, Paragraph 2, Item A. • State request for a revised safeguard and contingency report as requested in their letter to the City dated September 15, 1994, Paragraph 2, Item C and also their letter of January 31, 1994, Paragraph 1. • NPDES No. CA 0105376 requirements for a description of the existing safeguards at the plant pursuant to General Provisions, Item 20, Paragraph a. • NPDES No. CA 0105376 requirement for a report on City representative and contingency plans for controlling accidental discharges pursuant to General Reporting Provisions, Item 11, Paragraphs a through c. Much of this information is normally complied within the Operation Manual and can be used to complete portions of the Operations Manual is desired. PROJECT COST The cost to compile the subject engineering report is $27,000 which includes all labor and materials. At this time, we anticipate that the report can be completed within three to four months provided written authorization to proceed is received by mid April. This proposal and the attached standard provisions (2 pages) represent the contract between you - the CLIENT, and RG S Engineering Geolo,,v, the CONSULTANT. Please indicate your acceptance of the contract by signing both copies below and returning one executed contract for our files. We appreciate the opportunity to provide these services. Should you have any questions, or require additional information, please contact our office. Sincerely, RGS Engin ring Geology topher Krall, CEG Principal Authorized Signature Date MAR. -29-1995 10:42 FROM URBAN LOGIC CONSULTANTS TO PLANNING — BMNT P.02 Parametrix, inc. CC179u/t'rY* E'roinecdrl(j;u,ri rtrlYf7�ilLIM� ---..,.. lNCil ficin•7eQ- 1231 PvarAvernjR ao. Box 460 Sumner, WAo2soo.islUr 8d6 8&3^5128.2n&saq-Qa:o + P&x.. 2os-ss3 agRs December 12, 1994 FMX #21-2639-01 Mr. Deepak Moorjani Director'of Public Works City of B==ozo P.O: Bax 15$ Beaumont, CA 92223-2409 Re. City of Beaumont WWTP - Title 22 Engineering Report on Plant Reliabillry Dev Mr. Moorjani: As a result of our telephone conversation last week, Paramctdx is pleased to submit to you a proposal to prepare a Title 22 Engineering Report on your new Wastewater 'preatment Plant specifically addressing plant reliability and redundancy. Based on a review of the requirements for this report, we envision that it would contain and detail ft following information on the plant: + Wastewater Quality Criteria Description of Treatmcm Processes Plwt Reliability Information, including: ► Emergency storage capabilities ► Analysis of each unit process reliability features 10 Discussion of alarm features and automated provisions ► Standby power capabilities ► Analysis of the frequency, duration, and impact of power failures within tete last five years • Hydraulic capabilities to bypass unit processes } Description of existing safeguards + Operation wid. Maintenance Information, including: r Discussion of personnel Preventative maintenance program w Spare parts availability s Records and reports required P. Samples and testing analyses required Preventative and Contingency Plan b, Identification of possible sources of accidental loss, untreated waste bypass, and contaminated discharges rnnted w R w/cled Paper MAR -29-1995 10:49 FROM URBAN LOGIC CONSULTANTS TO PLANNING - BMNT P.03 V + Mr. Deepak Moor ani December 12, 1994 Page 2 b. Description of facilities and procedures for effective prevetitative and contingency plans No. Evaluation of effectiveness of facilities and procedures The completed report would address and/or comply with each of the following City requirements: Stare request for the submittal of an Engineering Report as requested in the Regional Water Quality Control Board's letter of September 15, 1994, Paragraph 2, Item A. + State request for a revised safeguard and contingency roport as requested in their letter to the City dated September 15, 1994, Paragraph 2, Item C and also their letter of January 31, 1994, Paragraph 1. + NPDES No. CA 0105376 requirements for a description of 'the existing safoguards at tha plant pursuant to General Provisions, Item. 20, Paragraph a. • NPDES No. CA 0105576 requirement for a report on City preventative and contingency plans for controlling accidental discharges pursuant to General Reporting Provkions, Item 11, Paragraphs a through c_ The completed report could also be used as Pon of an Operation and Maintenance Manual for the now plant. A lot of the information developed is normally included in an Operation and Maintenance Manual. We can provide this level of detail to you in an Engineering Report for a lump sum fee of $29,OM. We can complete the report by the end of March 1995, provided we have an authorisation to proceed by early January 1995. I hope Hurt this is the information you need. If you have questions, please call me immediately. We are ready to work on this report upon your direction. Sincerely. PARAMETRIX, INC. Steven C. Giloert, Y.L. Noject managw SCG:nkd TOTAL P.03 Page 1 of 2 STANDARD PROVISIONS OF AGREEMENT The Client and Consultant agree that the following provisions shall be a part of this agreement: 1. ENTRY AND PROPERTY CARE 1.1 The Client will provide for right of entry of RGS Engineering Geology (RGS) and all necessary personnel and equipment in order to complete the work in a competent, safe and professional manner. 1.2 While RGS will take all reasonable precautions to minimize any damage to the property, it is understood by the Client that in the normal course of work some damage may occur, the correction of which is not part of this agreement. 2. PROJECT SITE 2.1 In the prosecution of their work, RGS will take all reasonable precautions to avoid damage or injury to the subterranean structures or utilities. 2.2 The Client agrees to hold RGS harmless for any damage to subterranean structures or utilities which are not called to RGS's attention and correctly shown on the plans furnished. 2.3 RGS shall riot backfill any borings or excavations on completion of work. This service may be requested at an extra cost. 2.4 Client will make available to RGS all information regarding existing and proposed conditions of the site. The information shall include, but not be limited to, plot plans, topography surveys, hydrologic date, and previous plans, topography surveys, hydrologic data, and previous soil data including borings, field or laboratory tests, written reports, and any data of record with the County Recorder pertaining to site conditions. Client will immediately transmit to RGS any change in plans. RGS shall not be liable to Client for any incorrect advice, judgment or decision based on any inaccurate information furnished by Client, his agents or his other consultants, and Client will indemnify RGS against claims, demands, or liability to the extent arising out of or contributed to by such information. 3. SAMPLES 3.1 Except in the case of hazardous materials described in Paragraph 13 below, RGS will retain all soils and rock samples for thirty days. Further storage or transfer of samples can be made at Client's expense upon Client's written request. 4. INVOICES 4.1 RGS will submit invoices to the Client upon completion of services or at two week intervals, which are due and payable upon presentation. 4.2 Client hereby agrees that the balance as stated on the billing from RGS to Client is correct, conclusive and binding on the Client unless client notifies RGS in writing within ten (10) working days from the date of the invoice of the particular item that is alleged to be incorrect. 4.3 A late payment finance charge will be computed at the periodic rate of 1.5% per month, which is an annual percentage rate of 1S%, and will be applied to any unpaid balance commencing 30 days after the date of the original inovice. 4.4 Fee Schedules are periodically revised. Unless otherwise agreed, new rates apply to ongoing work as the rates are issued. 4.5 In the event all or any portion of the work prepared or partially prepared by RGS be suspended, abandoned, or terminated, the Client shall pay RGS for on an hourly basis for the work incurred prior to such suspension, abandonment or termination, but not less than any minimum contract amount specified herein. 5. OWNERSHIP OF DOCUMENTS 5.1 All reports, boring logs, field data, field notes, laboratory test data, calculations, estimates, and other documents prepared by RGS, as instruments of service, shall remain the property of RGS 5.2 Client agrees that all reports and other work furnished to the Client or his agents, which are not paid for, will be returned upon demand and will not be used by the Client for any purpose whatsoever. 5.3 Client agrees that all reports and other work furnished to the Client shall not be transmitted or furnished to other persons or entities without RGS's written consent. The Client shall hold harmless and indemnify RGS from any claims, damages, costs or expenses arising out of the unauthorized transmittal of RGS's reports to any other person or entity. 5.4 RGS will retain all pertinent records relating to the services performed for a period of one year following submission of the report, during which period the records will be made available to the Client at all reasonable times. 6. STANDARD OF CARE 6.1 Service performed by RGS under this Agreement will be conducted in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. 6.2 Client recognizes that subsurface conditions may vary from those encountered at the location where borings, surveys, or explorations are made by RGS and that the data, interpretations and recommendations of RGS are based solely on the information available to him. RGS shall not be responsible for the interpretation by others of the information developed. 7. CLIENT CHANGES 7.1 In the event any changes are made in the plans and specifications by the Client or persons other than RGS, the Client agrees to hold RCS harmless from any liability arising out of such changes and the Client assumes full responsibility unless the Client has given RGS prior notice and has received RGS's written consent for such changes. RGS Engineering GeoioaY Page 2 of 2 STANDARD PROVISIONS OF AGREEMENT 8. TERMINATION 8.1 This Agreement may be terminated by either party upon seven (T) days written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof. Such termination shall not be effective if that substantial failure has been remedied before expiration of the period specified in the written notice. In the event of termination, RGS shall be paid for services performed to the termination notice date plus reasonable termination expenses. 9. LIMITATION OF LIABILITY 9.1 The Client agrees to limit the total cumulative liability of RGS, its affiliates and their respective directors, officers, employees and agents to Client and all construction contractors, sub -contractors and consultants on the project with respect to services performed or to be performed pursuant to this agreement whether in contract, indemnity, contribution, tort (including negligence, whether active, passive or any other kind), or otherwise, such that the total aggregate liability to all those named shall not exceed the lesser of $50,000 or RGS's fee. RGS will not be liable for consequential damages. 10. DISPUTES 10.1 Should a dispute should arise relating to the performance of the services to be provided under this Agreement, arbitration by a third party will be attempted prior to litigation. 10.2 In the event that litigation is instituted under the terms and conditions of this Agreement, the same is to be brought and tried in the court of competent jurisdiction in San Bernardino County, and Client waives the right to have the suit brought, or tried in, or removed to any other County or judicial jurisdiction. 10.3 All litigation or collection expenses, witness fees, expert witness fees, court costs, and attorney's fees shall be paid to the prevailing party. 11. OTHER CONTRACTUAL CRITERIA 11.1 Neither the Client nor RGS may delegate, assign, sublet or transfer his duties or interest in this agreement without the written consent of the other party. 11.2 If the Client is a corporation or public entity, the individual or individuals who sign this Agreement on behalf of the Client warrant that they are duly authorized agents of the Client. The Client binds himself, his partners, successors, executors, administrators and assign to this agreement in respect to all its terms and conditions. 11.3 These conditions and agreements will be considered a part of and incorporated into the contract between RGS and the Client. 12. HAZARDOUS MATERIALS 12.1 When hazardous materials are known, assumed or suspected to exist at a site, RGS is required to take appropriate precautions to protect the health and safety of personnel, to comply with the applicable laws and regulations, and to follow procedures that RGS deems prudent to minimize physical risks to employees and the public. The Client hereby warrants that, if he knows or has any reason to assume or suspect that hazardous materials may exist at the project site, he has presented this information to RCS prior to entering into this agreement. The Client also warrants that he has done his best to inform RGS of such known or suspected hazardous materials, type, quantity and location. This notification should include, but not necessarily be limited to, written notice. 12.2 Hazardous materials may exist at a site where there is no reason to believe they could or should be present. RGS and the Client agree that the discovery of unanticipated hazardous materials constitutes a changed condition mandating a renegotiation of the scope of work or termination of services. RCS and the Client also agree that the discovery of unanticipated hazardous materials may make it necessary for RGS to take emergency measures to protect the health and safety of the public. The Client agrees to compensate RGS for additional cost of such measures. RGS agrees to notify the Client as soon as practically possible should unanticipated hazardous materials or suspected hazardous materials be encountered. Failure of the Client to take any and all measures that in RGS's opinion are necessary to protect the health and safety of personnel on the site as well as the general public, will be grounds for immediate termination of this Agreement. In addition, the Client waives any claim against RGS, and agrees to defend, indemnify and save RGS harmless from any claim or liability for injury or loss arising from RGS's discovery of unanticipated hazardous materials or suspected hazardous materials. The Client agrees to compensate RGS in defense of any such claim with such compensation to be based upon RGS's prevailing fee schedule and expense reimbursement policy relative to recovery of direct project costs. 12.3 In the event the project site is not owned by the Client, Client warrants that he has obtained all necessary permission for RGS to enter on the site and conduct subsurface exploration activities. The Client recognizes that it is his responsibility to inform the property owner of the discovery of unanticipated hazardous materials or suspected hazardous materials. 12.4 In the event that samples contain substances or constituents hazardous to health and safety or to the environment as defined by federal, state, or local statutes, regulations, or ordinances, RGS will, after completion of testing and at the Client's expense: (1) return such samples to Client, or (2) Dispose such samples to a location directed by the Client, permissible by law. All costs associated with said disposal will be the sole responsibility of the Client. RGS would act only as a bailee for the client, and at no time assumes responsibility for such materials or any costs associated thereof. RGS Engineering Geolog) March 29, 1995 t Of J(&O-Umont 550 East Sixth Street P. O. Box 158 Beaumont, CA 92223-0158 (909) 845-1171 FAX (909) 845-6160 Mr. Gerard Thibeault, Executive Officer California Regional Water Quality Control Board Santa Ana Region 2010 Iowa Avenue, Suite 100 Riverside, CA 92507-2409 RE: CITY OF BEAUMONT WASTEWATER TREATMENT PLANT TITLE 22 ENGINEERING REPORT FOR ULTRAVIOLET DISINFECTION Dear Mr. Thibeault: With reference to your letter of September 15, 1994, and the City of Beaumont's proposed use of ultraviolet (UV) disinfection at the expanded wastewater treatment and reclamation plant we are forwarding this letter to advise you of the current status and to provide the information you requested to comply with Title 22. In our Title 22 Engineering Report on Plant Reliability we will provide additional engineering information for the treatment processes upstream from the disinfection process and reliability information on the reclaimed water distribution system pertaining to the site and we will expand on the safeguard and contingency report for the new wastewater treatment and reclamation facility as requested pursuant to California Water Code Section 13267. This report will be submitted b�} April 30, 1995. a In response to the Board's review of the engineering report addressing the UV disinfection system treatment process to be employed at the expanded plant, in conformance with Title 22, California Code of Regulations, submitted by Parametrix, Inc., in January of 1994 please find our comments following: Section 4, Table 4-3, Plant Design Criteria, shows an illustration consisting of three air blowers, while the text indicated the number of blowers as one (1). The actual number of blowers is three as shown in the illustration. The blowers are being installed at this time. 2. Section 6.2, Field Testing Before Start-up, testing of hydraulic detention time distribution, water level verification, and head loss will begin in April 1995. The test results will be Mr. Gerard 7hibeault March 29, 1995 CRWQCB submitted to the Board for review and comment prior to the discharge of wastewater from the expanded plant. 3. The automatic flow pacing and alarm systems referenced in Sections 6.3 and 6.4 will be fully operational prior to discharge of wastewater from the expanded plant. Testing of these systems will occur in the last week of April 1995. 4. Section 6, Table 6-2, Alarms. Due to variables it is extremely difficult to set specific time frames for corrective action, as noted by the Board. Therefore, it may be more feasible to review each item and set individual ranges to best comply with the Board's recommendation. 5. City will abide by all recommendations contained in Section 6.5, Preventative Maintenance. 6. Section 6.8, Spare Parts. The City acknowledges the Board's concurrence with the recommendation to construct a structure to house the spare parts and is negotiating with the owner to purchase the construction trailer on site to serve as an office and a spare parts storage areas; however, the City requests the Board's forbearance in view of the very limited resources available with the City. 7. The City will post appropriate warning signs, as suggested in Section 6.9, Safety, and install a safety shower and eye wash station at the sleeve cleaning tank per the Board's recommendation. We apologize for the delay in submitting the above information to you and reiterate our desire to furnish the information as speedily as possible to comply with all the requirements of the California Regional Water Quality Control Board. If you have any questions on the above or require any additional information prior to the submittal of the above stated items, please do not hesitate to contact our office. Sincerely, CITY OF BEAUMONT Deepak oor ani Director f Public Works cc: Parametrix, Inc. City Council Patrick A. Smith, Interim City Manager 2 Urban Logic Consuctants F0Planning, Municipal Services, Public Works, Environmental Management March 27, 1995 Mr. Patrick Smith, Interim City Manager City of Beaumont 550 East Sixth Street Beaumont, CA 92223 RE: Proposal to Provide the City of Beaumont WWTP with a Title 22 Engineering Report on Plant Reliability Dear Mr. Smith: Urban Logic Consultants is pleased to provide a proposal with regard to the above referenced report. The Regional Water Quality Control Board requires the City of Beaumont to provide a comprehensive Title 22 Engineering Report addressing plant reliability and redundancy. Based on the review of the requirements of this report, the report would contain the following information on the plant: 0 Wastewater Quality Criteria Description of Treatment Processes 0 Plant Reliability Information, including: o Emergency storage capabilities o Analysis of each unit process reliability features o Discussion of alarm features and automated provisions o Standby power capabilities O Analysis of the frequency, duration, and impact of power failures within the last five years o Hydraulic capabilities to bypass, unit processes o Description of existing safeguards • Operation and Maintenance Information, including: o Discussion of personnel o Preventative maintenance program 43517 Ridge Park Drive, Suite 200 • Temecula, California 92590 TeL (909) 676 - 1944 • Fax: (909) 676 - 2054 Mr. Patrick Smith March 27, 1995 Page two o Spare parts availability o Records and reports required o Samples and testing analyses required • Preventative and Contingency Plan o Identification of possible sources of accidental loss, untreated waste bypass, and contaminated discharges o Description of facilities and procedures for effective preventative and contingency plans o Evaluation of effectiveness of facilities and procedures The completed report would address and/or comply with each of the following City requirements: • State request for the submittal of an Engineering Report as requested in the Regional Water Quality Control Board's letter of September 15, 1994, Paragraph 2, Item A. * State request for a revised safeguard and contingency report as requested in their letter to the City dated September 15, 1994, Paragraph 2, Item C and also their letter of January 31, 1994, Paragraph 1. NPDES No. CA 0105376 requirements for a description of the existing safeguards at the plant pursuant to General Provisions, Item 20, Paragraph a. NPDES No. CA 0105376 requirement for a report on City preventative and contingency plans for controlling accidental discharges pursuant to General Reporting Provisions, Item 11, Paragraphs a through c. The completed report could also be used as part of an Operation and Maintenance Manual for the new plant. A lot of the information developed as normally included in an Operation and Maintenance Manual. We can provide this level of detail to you in an Engineering Report for a lump sum fee of $24,280. We can complete the report by April 30th, provided we receive authorization to proceed immediately. Mr. Patrick Smith March 27, 1995 Page three We hope this will meet with your approval. Please confirm your acceptance immediately in order to ensure the timely completion of this report. Very truly yours, URBAN LOGIC CONSULTANTS Deepak oorjani, P. E. 0 Principal DM:lmm Accepted by: s Authorized Signature D e Urban Logic Consuctants Planning, Municipal Services, Public Works, Environmental Management March 29, 1995 Mr. Patrick A. Smith, Interim City Manager City of Beaumont 550 East Sixth Street Beaumont, CA 92223 RE: Extra Work to Provide Title 22 Engineering Report on Plant Reliability Bear Pat, Enclosed please find the above referenced proposal t pcovide a Title 22 Engineering Report on Plant Reliability which is required to comply with the City 1s waste discharge permit. The need for the waste discharge permit was explained to the City Council when the Sewer Revenue Bond Status Report was presented in November, 1994. The State Regional Water Quality Control Board has required the report to be completed by April 30, 1995. The Agreement between the City and ULC auth tines the City Manager to execute extra work contracts up to an amount of $ 25,000.00. Furtherr�ore the extra work Contract is consistent with the City policy for extra word contracts which was recently. Funding for t1e we k is awlilable fron, the �,'.c er Revenue 131--m nd facility contin,;extcy budget. We did receiv a ric3 from Parametrix whol perforin ;d the THe 22 report for the U.V. disinfection unit; however, Pa arnetrix wa s several thousand dollaEs more. A copy of the Parametrix proposal is attached. Thank you very much for your consideration in this matter. Very truly yours, BAN LOGIC CONSULTANTS eepak Moorjaru Princip Encl. > 43517 Ridge Park Drive, Suite 200 • Temecula, California 92590 TeL (909) 676 - 1944 • Fax: (909) 676 - 2054