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C10-27 - Utility Partners LLC C o 441 Beaumont City Contract No. AGREEMENT THIS AGREEMENT is entered into at Beaumont, California as of the date set forth below is between City of Beaumont hereafter called "City" and Contractor: 0-; )J ?A/21,0443 Address: 9k ' ,/2 cz 1vs i�95 Vel ,s /111/ ,/�/4/i hereafter called "Contractor". / WITNESSETH RECITALS: 1. Contractor has submitted to City his Contractor's Proposal for the Replacement of Filters and Media at the Wastewater Treatment Facility in strict accordance with the Contract Documents identified below and City has accepted said Proposal. 2. Contractor states that he has reexamined his Contractor's Proposal and found it to be correct, has ascertained that his subcontractors are properly licensed and possess the requisite skill and forces, has reexamined the site and Contract Documents and is of the opinion that he can presently do the work in accordance with the Contract Documents for the money set forth in his Proposal to be paid as provided in the Contract Documents. AGREEMENT: IT IS AGREED BY THE PARTIES AS FOLLOWS: 3. Contract Documents. The entire contract consists of the following: (a)The Agreement, (b)The Notice Inviting Bids (c)The Instruction to Bidders (d)The Contractor's Proposal, (e)The Bid Bond, (f)The Payment Bond, (g)The Performance Bond, (h) Addenda No-- •" (i)The Determination of Prevailing Wage Rates for Public Work, Replacement of Filters and Media at the Beaumont Wastewater Treatment Facility Page 23 of 27 All of said Documents presently in existence are by this reference incorporated herein with like effect as if here set forth in full and upon the proper issuance of other documents they shall likewise be deemed incorporated. The Bid Bond is exonerated upon execution of this Agreement and the Payment Bond and Faithful Performance Bond. 4. The Work. Contractor shall do all things necessary to construct the work generally described in Recital No. 1 in accordance with the Contract Documents. 5. Time of Completion. The Contractor shall begin work within 10 days of the date stated within the written "Notice to Proceed." Contractor shall complete this project within ninety (90) calendar days from the date of the Notice to Proceed. The Contractor shall notify the Engineer, in writing, of his intent to begin work at least 72 hours before work is begun. The notice shall be delivered to the Public Works Department's Construction Manager and shall specify the date the Contractor intends to start. If the project has more than one location of work, a separate notice shall be given for each location. Should the Contractor begin work in advance of receiving a written "Notice to Proceed", any work performed by him in advance of the date stated in the "Notice to Proceed" shall be considered as having been done by him at his own risk and as a volunteer and subject to the following: (a) The Contractor shall, on commencing operations, take all precautions required for public safety and shall observe all the provisions in the Specifications. (b) All work done according to the contract prior to the issuance of the "Notice to Proceed", will be considered authorized work and will be paid for as provided in the contract. (c) The Contractor shall not be entitled to any additional compensation or an extension of time for any delay, hindrance or interference caused by or attributable to commencement of work prior to the issuance of the "Notice to Proceed". 6. Compensation. Contractor shall be paid in the manner set forth in the Contract Documents the amount of his Proposal as accepted by City, the above rates, subject to additions and deductions as provided in the Contract Documents. Said Proposal is on file in the Office of the City Clerk of the City of Beaumont. Replacement of Filters and Media at the Beaumont Wastewater Treatment Facility Page 24 of 27 IN WITNESS WHEREOF the parties hereto have executed this agreement as of the date set forth below. CITY OF BEAUMONT CONTRACTOR fes► �!�:.nl�� By: ` /�� � Dated: -0---- (ll Title: S,, v/Ge beS.64-d- (If Corporation, Affix Seal) ATTEST: ATTEST: City Clerk u",�L0 _ • BYL�. ':._.. . . ' Title: eavtrYt • %�as,1 Dep I a "City" "Corporation" (Seal) (Seal) Replacement of Filters and Media at the Beaumont Wastewater Treatment Facility Page 25 of 27 1b - CITY OF BEAUMONT PROJECT PROGRESS REPORT Replacement of filters and media at the Wastewater Treatment Facility Sewer Funds Project Name: Replacement of Filters and Media at the Source of Wastewater Treatment faclity Funds: Contract August 19,2014 Contractors: Utility Partners Date: Const.Budget: $172,870 A&E Budget: Project Start Date: August 2014 Report Period: August 2014 Work Completed During Report Period: Prepared specifications and contract documents,bid analyses. Problems or Delays During Report Period: No delays Change Orders: No Change Orders Recommendation(s)for City Council Action: Approve and authorize qualified and approved contractors to complete the work. Approved and auth i d by: . or Signature Date of City Council Approval UT), . o C ,° ,�, CD O CD * Z 11W ccam, K ° 7` O CD o r 01 5 ,...w. = f_it. Q Pd 7 c� q. a • to tiii n ►t c (.14 %Steil 0 ci) 00 o ° o� • ,.,,,, ,.., • e "LS �CD N vz bio b4 -CA- OO N O r-+ W -J -P 0 O O O • O O O n W N r-, Z STAFF REPORT Agenda Item I Ct I v Date: August 19, 2014 To: Mayor and Council Members Through: City Manager 4' From: Public Works Department Subject: Award of replacement of Filters and Media at the Wastewater Treatment Facility Background and Analysis: On July 15, 2014 the City Council approved the bid information for replacement of filters and media at the Wastewater Treatment Facility. Sealed bids were received and opened in public on August 11, 2014. Three companies participated in the bidding process. The apparent lowest responsive bid was submitted by Utility Partners in the amount of$172,870. A copy of the list of bids is attached. Fiscal Impact: There is no impact on General Funds. The project will be funded by Sewer Funds. Action: 1. Approve the proposed agreement and project progress report 2. Approve the proposed agreement and project progress report with modifications 3. Continue the proposed agreement and project progress report 4. Deny the proposed agreement and project progress report - r � 1/0- Agreement for Professional Utility Management Services for City of Beaumont This AGREEMENT is made on the _30th day of Jul 2010 between City of Beaumont (hereinafter "Owner"), whose address for any formal notice is 550 East 6 Street, Beaumont, CA 92223 and Utility Partners, LLC (hereinafter "Operator") with corporate offices at 44 Old Canton Street, Alpharetta, GA 30004. This Agreement is effective as of the date first above written and shall continue for six (6) months from said date, unless extended or sooner terminated as provided for herein. Owner and Operator agree: ARTICLE 1. GENERAL 1.1 All definitions of words or phrases used in this Agreement are contained in Appendix A. 1.2 All facilities, grounds, equipment and vehicles shall remain the property of the Owner 1.3 This Agreement shall be governed by and interpreted in accordance with the Laws of the State of California. 1.4 This Agreement shall be binding upon the successors of each of the parties but neither party will assign this Agreement without the prior written consent of the other party. 1.5 All notices shall be in writing and transmitted by certified mail or personal delivery to the addresses listed above. 1.6 This Agreement, including Appendices, is the entire Agreement of both parties and may only be modified by mutually agreed written amendments signed by both parties. Wherever used, the terms "Owner' and "Operator" shall include the respective officers, directors, elected or appointed officials and employees. ARTICLE 2. SCOPE OF SERVICES: OPERATOR 2.1 Project Description. The Project is defined in Appendix A and as follows The Scope of Services shall be for operation and maintenance of wastewater treatment plant, disposal system sewerage collection system and the lift stations for the City of Beaumont as described below A. Description of Wastewater Treatment Plant: Agreement for Professional Utility Management Serviced The waste water treatment plant consists of an Advanced Activated Sludge, with filtration and Ultraviolet disinfection process and the recycled water use system. The wastewater treatment plant currently has an average daily capacity of 4.00 MGD which is proposed to be increased to 8.00 MGD with the planned expansion The seweraae collection system aenerally covers an area as shown in the map as Exhibit 1 attached to this agreement The Owner is the holder of NPDES Permit No. CA0105376. The Owner is in substantial compliance with the conditions pertinent to the NPDES Permit a true and correct copy of which is attached hereto as Appendix C and made a part hereof. B. The Lift Stations presently covered in this scope are the following: 1. Noble Creek Lift Station 2. Marshall Creek Lift station 3. Little Lower Oak Lift Station 4. Lower Oak Lift Station 5. Upper Oak Lift Station 6. Seneca Sprinas Lift Station 7. Four Seasons Lift Station 8. Beaumont Mesa Lift Station 9. Industrial Park Lift Station 2.2 General Description of Duties and Responsibilities OPERATOR shall: A. Hire, train and employ a sufficient number of employees to staff and operate and maintain the wastewater treatment plant, the sewerage collection system and the nine lift stations or other units as they are built to meet the City's needs to provide continuing efficient and timely service. B. Provide sufficient project staff, including a Grade IV Project Manager, remaining operating staff shall have with varying grades ranging from operator in trainee ( OIT ) to Grade 3 which will meet certification requirements of the State of California and Labor and Benefits Costs to all staff assigned full time to the Project. The coverage expected is 24 -hours a day, 7 -days per week. An organization chart for the operating staff shall be provided to the City within 10 days after this Agreement is signed by Operator. C. Use its best efforts and devote 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 Operator shall likewise require all of its employees, agents, contractors and subcontractor 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. D. Perform monitoring & reporting: 2 Agreement for Professional Utility Management Services 1. Prepare all Federal and California water quality and wastewater permit reports and submit these to the Regional Water Quality Control Board or any other appropriate Federal, State, County agency as required. 2. These reports shall be submitted in the format required by these agencies and in a timely manner pursuant to the NPDES Permit. E. Ensure reliability of operation and maintenance: 1. Perform Preventative Maintenance on all equipment such as pumps, blowers, flow meters, centrifuges to keep them in good working order. 2. Perform reliability checks on all equipment, stand by generators to keep them ready in good working order at all times. 3. Keep flow meters calibrated at all locations and these flow meters shall be calibrated at least once yearly at Operator's expense. F. Maintain an appropriate supply of chemicals and other consumables: 1. Keep the laboratory in test ready condition stocked with necessary chemicals and reagents for operational tests for the treatment plant and /or the sewerage collection system. 2. Keep plant use chemicals such as polymers, odor control chemicals, UV lamps and other spare parts necessary for proper operation and maintenance of the facilities. G. Document all repairs and repair parts and expenses incurred on behalf of the Owner. All current, purchasing policies and procedures of the Owner will remain in place. In addition, Utility Partners shall update the Owner monthly on the cost -to -date of repair parts versus the agreed upon repair budget amount for "Utility System Maintenance and Repair" for the treatment facilities. H. Provide twenty -four (24) hour per day access to Project for Owner. Visits may be made at any time by any of Owner's employees. Keys for Project shall be provided to the Owner by the Operator. Visitors to the Project must comply with Operator's operating and safety procedures. Develop and train for responses to emergencies: Respond to Emergencies which may include but are not limited to sewage spills, lift station failures, sewer blockages, manhole overflows or any plant upset conditions. 2. Response to emergencies shall be consistent with the State required Over flow Emergency Response Plan ( OERP) . Agreement for Professional Utility Management Services 3. Response to emergencies shall also be supervised by the Operator in cases where outside contractors may be hired. 4. When there is an emergency or capital project requiring Utility Partners to purchase parts or secure assistance in performing a repair for the Owner, incurring an expense on behalf of the Owner which exceeds $2,000, Utility Partners shall document and notify the Owner's representative of the occurrence to seek approval. Any repair parts purchased on behalf of the Owner under an emergency will be reimbursed to Utility Partners upon presentation of a proper receipt. 5. During emergencies, the Operator shall keep the Owner informed to the fullest extent possible, and thereafter shall promptly 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 the Owner, unless such emergency repairs are the result of the negligence of the Operator in which case the Operator shall pay all costs of emergency repairs from its own funds. J. Vehicles and tools shall be provided as follows: 1. Under the terms of this Agreement Utility Partners shall provide a vehicle for the Project Manager to use at the Project. The Owner shall provide all other vehicles and equipment required for the Operator's staff to perform their duties. 2. Operator shall provide all necessary tools and keep them in good working order at all times to meet the operation and maintenance needs of the said facilities. 3. Operator shall provide a Vactor truck for general sewer cleaning purposes or shall hire a contractor until such time that a vactor is procured. This vehicle shall be kept at the treatment plant compound. 4. Operator shall pay all Direct Costs, excluding power and sludge hauling, as outlined in Appendix A for the treatment facilities. K. Public Relations shall be conducted by Operator as follows: 1. Operator shall respond to all complaints that are received regarding the treatment plant and the sewerage collection system or the lift stations. 2. Operator shall respond to all general public inquiries about the City's facilities. 3. Operator shall provide reasonable access for tours by schools and other groups in coordination with the Owner's staff. 4 Agreement for Professional Utility Management Services 4. Operator shall keep the treatment plant grounds in clean and tidy condition consistent with generally accepted practices for the industry. 5. Operator shall provide Owner and the public with the names of contact persons and their contact information, such as phone numbers and hours for contact. L. Operator shall satisfy the following special sewer cleaning requirements: Operator agrees to perform general cleaning of the City's sewage system at the rate of not less than 4500 LF per month and provide a report to Owner of those services by the 15"' of each month. ARTICLE 3. SCOPE OF SERVICES: OWNER OWNER shall: 3.1 Maintain all existing Project easements, warranties and licenses that have been granted to Owner. 3.2 Pay all Administrative Costs and franchise, property or other normal taxes associated with the Project. 3.3 Provide to Operator any equipment presently in use for the Project, as described in Appendix D, but not less than $2 million liability coverage for such equipment, including the automobiles, trucks, dump trucks, and excavators shall be provided by the Operator. 3.4 Pay for maintenance of those vehicles and equipment described in Appendix D. 3.5 Pay for capital repair projects in excess of $2,000 and additionally- required repair parts in the event that the mutually agreed -upon budget is exhausted. 3.6 Provide a Repair Parts budget account of $12.000 which is included in Operator's compensation (see Appendix F). Operator's Project Manager shall maintain this account each month and report expenditures and balance to Owner. Funds not spent at the end of the term of this Agreement shall be returned. If the Repair Parts budget is forecast to be exhausted and additional funds are required, Owner shall replenish the budget. 3.7 Pay for all required Capital Expenditures, which include any expansions or modifications to the Project as a result of increased demand, normal replacement needs or regulatory requirements imposed by State or federal agencies. 3.8 Pay all power costs and those costs associated with sludge processing at, and hauling from, the wastewater treatment facility including chemicals ( reagents & process chemicals) and outside laboratory costs. 5 Agreement for Professional Utility Management Services / ARTICLE 4. TERM AND TERMINATION 4.1 The term of this Agreement is six (6) months beginning on August 1, 2010 and ending February 28, 2011. 4.2 The Owner may extend the term of this Agreement for 12 months thereafter, and compensation shall increase at the rate of the local Consumer Price Index (CPI) for the period. 4.3 Either party may give notice of termination of this Agreement for a material breach of the Agreement after giving written notice of breach and allowing the other party thirty (30) days to correct the breach. If the breach is not corrected within thirty (30) days, then this Agreement shall automatically terminate without further notice. 4.4 Upon termination, Operator shall cooperate with and assist Owner in transitioning the operation of the Project to a substitute operator. 4.5 Owner reserves the right to unilaterally cancel this Agreement at the Owner's sole discretion, giving Operator one hundred twenty (120) days' notice of its intent. Operator shall cooperate fully to insure a smooth transition of service to the new operator on behalf of the Owner. Owner will pay actual expenses incurred by Operator directly related to such cancellation and transition. ARTICLE 5. COMPENSATION 5.1 During the initial term of this Agreement, Owner shall pay to Operator as compensation for services performed under this Agreement $344,100 paid monthly in six (6) equal installments, in arrears. This amount includes compensation for the items listed in Appendix F. 5.2 Any capital repair parts purchased or projects performed on behalf of the Owner by the Operator, with Owner's prior approval, shall be billed as a direct pass through expense and may include a 10% processing fee. 5.3 In the event that a change in the scope of services occurs, Owner and Operator will negotiate a commensurate adjustment in compensation. 5.4 Owner shall pay Operator a fee of $18,000 to de- mobilize and transition out in the event that this Agreement is terminated within twelve months unless Owner determines in its sole discretion that the Operator's services are unsatisfactory. ARTICLE 6. CHANGE IN THE WORK 6.1 The Owner may make changes in the work, provided the changes are reasonably within the scope of this Agreement, and Operator shall expeditiously perform the changes as directed without additional compensation therefor. 6 Agreement for Professional Utility Management Services 6.2 Any change in the work that results in a decrease or increase in the work force (labor) shall correspondingly decrease or increase the cost as provided in Article 4. Project treatment modifications and expansions constitute a change in the work. ARTICLE 7. ACCOUNTING RECORDS 7.1 Operator shall keep full and detailed records and books of account on the basis of generally- accepted accounting practices in effect as of the effective date of this Agreement. 7.2 The Owner shall have the right to inspect and copy Operator's records, books, correspondence, instructions, memoranda and similar data relating to this Agreement and any of the work. 7.3 Operator shall preserve financial documents and other records to which Owner has access rights, without additional compensation, for a period of three years or longer as required by law, after final payment. ARTICLE 8. INDEMNITY LIABILITY AND INSURANCE 8.1 Operator shall hold Owner harmless from any liability or damages which may arise from Operator's negligent operations resulting in any violations or monetary penalties assessed by any regulatory agency for violations of NPDES Permit, and violations of any other Federal, State or local laws, rules and regulations. 8.2 Operator's liability to Owner under this Agreement excludes all indirect or consequential damages arising from the normal operation, maintenance and management of the Project. 8.3 Operator shall obtain an insurance coverage of a type and in the amounts described in Appendix E at its own expense. Nothing herein shall be construed as any waiver of immunity available to the Operator by California law. 8.4 Operator's liability assumes the wastewater treatment facility will receive normal wastewater that is free of industrial toxic shock loads which would affect Operator's ability to meet effluent discharge standards contained in the NPDES Permit requirements. ARTICLE 9. LABOR DISPUTES: FORCE MAJEURE 9.1 In the event activities by employee groups or unions cause a disruption in Operator's ability to perform hereunder, Operator may seek appropriate injunctive court orders. Operator shall continue to operate the Project on a best - efforts basis in strict 7 Agreement for Professional Utility Management Services / compliance with the NPDES Permit and all applicable Federal, State or local laws, rules and regulations. 9.2 Neither party shall be liable for its failure to perform its obligations under this Agreement if performance is made impossible due to any unforeseen occurrence (Force Majeure) beyond its reasonable control. City of Beaumont (Owner) Brian -�.�. - Mayor Utility Partners, LLC. (Operator) By Wil iam Doug Senior Vice F By 8 Agreement for Professional Utility Management Services APPENDIX A The "Project" means all equipment, vehicles, grounds and facilities described in this Agreement and where appropriate, the management, operations and maintenance of such. 2. "Capital Expenditures" means any expenditure for the purchase of new equipment; or facility items or major repairs which significantly extend facility life and cost more than two thousand dollars ($2,000); or expenditures that are planned, non - routine and budgeted by the Owner. 3. "Labor and Benefits Costs" are defined as salaries, group insurance, dental insurance, worker's compensation, retirement and social security for employees. 4. "Administrative Costs" are defined as audit and accounting fees, insurance, interest expense, depreciation, state fees, recycling fees, curbside fees, landfill fees, ad valorem taxes, purchase of natural gas, and fund transfers. 5. "Direct Costs" are defined as expenses for odor control chemicals, fuel, oil, lubrication, small tools, meters, pipe, fittings, repairs of motor vehicles, equipment, water wells and pumping stations, advertising, postage, telephone service, travel expenses of employees, and uniform expenses. This ( "Direct Costs ") does not include power or sludge hauling expenses. 6. "Preventative Maintenance" means the routine and /or repetitive activities required or recommended by the equipment or facility manufacturer or Operator as required maximizing the service life of equipment, vehicles and facilities. 7. "Repairs" means the costs of those non - routine /non- repetitive activities required for operational continuity, safety, and performance generally due to failure or to avert a failure of the equipment, vehicles or facilities or a component thereof. 8. "Normal Wastewater" means any wastewater that does not contain substance in the wastewater stream so as to interfere with biological processes necessary for the removal of the organic and chemical constituents of the wastewater required to meet the discharge requirements of the Owner's NPDES permit. Biologically toxic substances include but are not limited to heavy metals, phenols, cyanides, pesticides and herbicides. 9. "Project Manager" means the Utility Partners Grade IV certified senior operations staff person charged with day -to -day oversight of the contract. 10. "Emergency" is defined as any situation in which Operator's staff must respond quickly to protect the health and well -being of the public. Its intent is clearly an effort to protect the interests of the public in the event of a natural disaster, hurricane, tornado or other unusual occurrence. APPENDIX B INVENTORY OF PARTS, CHEMICALS AND SUPPLIES: 9 Agreement for Professional Utility Management Services ! 1. Laboratory Reagents necessary to carry out plant operational tests. 2. Ferric Chloride as a coagulant for sludge conditioning and odor controls. 3. Polymer for Sludge coagulation and Flocculation. 4. Ultraviolet (UV) lamps for replacement. APPENDIX C STATE OF CALIFORNIA WATER QUALITY AND WASTEWATER NPDES PERMITS AND OPERATING CERTIFICATES APPENDIX D INVENTORY OF VEHICLES AND EQUIPMENT 1. Truck VIN # 2. Sewer Truck 3. Tools 4. Computer and SCADA equipment APPENDIX E INSURANCE COVERAGE Operator shall maintain: 1. Statutory worker's compensation for all of Operator's employees at the Project, as required by the State of California. 2. Comprehensive general liability insurance in an amount not less than $2,000,000 combined single limits for bodily injury and /or property damage. 3. Vehicle insurance of not less than $2 million for any vehicles and equipment owned by the Operator, and similar scheduled liability coverage for the automobiles, trucks, dump trucks, and sewer cleaning vehicles owned by Owner and used by Operator. Owner shall maintain: 1. Property damage insurance for all property including moving equipment owned by Owner and operated by Operator under this Agreement. Not 10 Agreement for Professional Utility Management Services properly or fully insured property shall be the financial responsibility of the Owner. APPENDIX F UTILITY PARTNERS' COSTS Utility Partners' compensation includes all costs associated with the following budget categories: o Salaries • Overtime (does not include disaster cleanup) • Federal and State Unemployment • Social Security • Medical and Dental Insurance • Worker's Compensation Insurance • General Liability Insurance • Uniforms • Computer Software (Maintenance) • Training Costs (State certification schools) o Mobile communications for staff • General sewer line cleaning as stipulated • Corporate Operations Support • Odor Control Chemicals • Repair Parts - It is mutually agreed that the Owner will provide $12,000 for the purchase of repair parts. This $12,000 expense account is included in the annual cost of this professional services contract. These funds will pay for preventative and corrective improvements or rehabilitation of the Owner's facilities, consistent with current practice. On an annual basis, Operator shall return 100% of any unused funds in the Repair Parts account to Owner. 11 Agreement for Professional Utility Management Services / Minutes Beaumont City Council Beaumont Redevelopment Agency Beaumont Financing Authority Beaumont Utility Authority Beaumont Charitable Foundation Beaumont Conservation Authority 550 E. 6 h Street, Beaumont, California Workshop (4:00 p.m.) Closed Session (5:00 p.m.) Regular Session (6:00 p.m.) Tuesday, August 17, 2010 "Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk's office at 550 E. a Street during normal business hours" WORKSHOP Workshop to begin at 4:00 p.m. Place: Civic Center, Room 5 Roll Call: Mayor De Forge, Council Member Gall, and Council Member St.Martin were present. Mayor Pro Tern Berg and Council Member Fox was excused. 1) Support our Troops Ranch — Presentation CLOSED SESSION No reportable action was taken. Closed Session to begin at 5:00 p.m, Place: City Manager Conference Room Roll Call: Mayor De Forge, Mayor Pro Tern Berg, Council Member Gall, and Council Member St.Martin were present. Council Member Fox was excused. a. Pursuant to Government Code Section 54957.6, Conference with Labor Negotiator — City Negotiator as Personnel Director Alan Kapanicas Employee Organizations and Staffing b. Pursuant to Government Code Section 54956.8 Conference with Real Property Negotiator C. Pursuant to Government Code Section 54956.9(a) - Anticipated Litigation — Conference with Legal Counsel — Existing Litigation(Government Code 54956.9) 1. Peters vs. City —Case No. RIC 467388 2. Western Riverside Council of Governments vs City of Beaumont RIC 536164 3. Coronado vs. City RIC 10001628 & RIC 516461 4. Moore vs. City RIC 540267 5. Cashmer vs. RIC 541427 REGULAR SESSION Regular Session began at 6:05 p.m. Place: Civic Center, Room 5 Roll Call: Mayor De Forge, Mayor Pro Tern Berg, Council Member Gall, and Council Member St. Martin were present. Council Member Fox was excused. Invocation: Marc Stamper — New Creations Pledge of Allegiance: Jake Gregg Presentation: Beaumont and Banning Scramble Mt. San Jacinto College Presentation Adjustments to Agenda: Continue Item 4.b — Ordinance No. 972 to the Regular City Council Meeting of September 21, 2010. ORAL AND WRITTEN COMMUNICATIONS: Dick Meinhdd — Year of Mark Twain Ann Connors — Elm Avenue Michael Ostermann — Development, Landscaping, Taxes Rick Roark — Weeds and landscaping in Fairway Canyon Chad Scott — CFD Bond in Fairway Canyon Adam Wagner — Street Sweeping Judy Bingham — Urban Logic Consultants Nancy Hall - Urban Logic Consultants 1. COUNCIL REPORTS (This is the portion of the agenda where the city council will present updates on city actions taken, committee assignments, and training and travel) a) Mayor De Forge — Updates on Valdivia Family Reunion, MDA Rummage Sale, Market Night, Movies in the Park, Concerts in the Park, Morongo Fundraiser, National Night Out b) Mayor Pro Tern Berg — Nothing new to report with RCTC, would like to look into setting up a task force on roads C) Council Member Fox — Absent/Excused d) Council Member Gall — Traffic on 60, weeds in San Timoteo, 3`d Street Roads. e) Council Member St.Martin — Update on Market Night, Tip a COP, Concerts in the Park 2. CITY MANAGER REPORTS (City of SwumoW Core Values: Treat everyone right; Keep a customer service focus; Effective communication; Present opportunity; Operate like a great business; 01h* ate bureaucratic solutions; Embrace positive change) a. Community Information and Local Project Update 1) Sustainability Update a) Summer Concerts in the Park Series b) Potrero Blvd Bypass C) Golf Access Program Update d) Golf Cart Plan Update e) Cherry Bowl Junior Tournament 2) Financial Update a) Sales Tax Update b) HDL Consensus Forecast —July 2010 C) Financial update — June 2010 (year -end) 3) Project Update a) Beaumont Cares 1) Citizens Academy — Community Ice Cream Social Open House 2) The RIGHT Way to School — signs and locations b) Signs 1) Caltrans expected to do study of 1 -10 Routes 2) Election Signs — September 17, 2010 through November 12, 2010 C) School Sewer Update and Action 4) Introductions of New Employees and Promotions a) Fire Marshal b) Grounds Maintenance C) PD (Commander, Lieutenant, Sergeant, Dispatchers) b. Calendar of Events 1) August 23, 2010 -1 ' Day of School — Beaumont Unified 2) August 27, 2010 — Annual Lt. Acosta Memorial Golf Tournament 3) September 6, 2010 — Jerry Lewis MDA Telethon 4) September 11, 2010 — United Way Day of Caring 5) September 15 — 17, 2010 - League of CA Cities Annual Conference 6) September 17, 2010 — 1 ' day for Political Signs 7) September 24, 2010 — Ice Cream Social 5:30 p.m. Beaumont Civic Center 8) Second and Third Wednesday of Each Month — Story Time Cafe C. Rumor Control, and Report on Oral and Written Communications 3. CONSENT CALENDAR (This portion of the Agenda is for items that do not require a public hearing or discussion.) a. Approval of all Ordinances and Resolutions to be read by title only and publish by summary b. Approval of the Minutes of the City Council Meeting July 6, 2010 C. Approval of the Warrant List for August 17, 2010 d. Approval of the Cherry Valley Blvd. /Palmer Extension e. Approval of the Water and Energy Conservation Agreement with Pardee Homes f. Authorize Withdraw from Participation in the San Timoteo Watershed Management Authority g. Approval of Fee Waiver for the Beaumont Spirit Run h. Denial of Claim — Robert Hahn i. Denial of Claim — Linda Williams j. Denial of Claim — Jimmie Dean Williams k. Approval of Withdraw from WRCOG I. Exoneration of Bonds — Marathon Land & Cattle — 06 -PP -15 — 5 acres located on 2"d Street, 3`" Street, Palm Avenue, and Chestnut. M. Approval of Task Order for Preliminary Assimilative Capacity Assessment for the San Timoteo Management Zone. n. Ratification of the Temporary Agreement with Tule Ranch/Magan Farms and Authorize the Mayor to execute subject to the authority of the City Attorney to make non - substantive changes. o. Approval of Sanitary Sewer Management Plan (SSMP). p. Authorize Request for Proposals and Ratify Temporary Service Agreement for Wastewater Operations Maintenance and Management. Recommendation: Approval of the Consent Calendar as presented. Speakers: Judy Bingham — Comments on Items 3.f, k, n, o, p Adam Wagner — Comments Item 3.d Motion by Council Member Berg, Seconded by Council Member St.Martin to approve the Consent Calendar as presented. Vote: 4/0 4. ACTION ITEMS /PUBLIC HEARING /REQUESTS (This portion of the Agenda is for items that require a public hearing, discussion, and/or Council direction.) a. Ordinance No. 971 — An Ordinance of the City Council of the City of Beaumont, California, Adding Chapter 5.70 to the Beaumont Municipal Code Entitled "Medical Marijuana Regulations" Recommendation: Take Testimony, Close Public Hearing and Continue item off calendar to be re- advertised at a later date. (Continued from July 6, 2010) Staff report was given by Joe Aklufl, City Attorney Speakers: Robert Christopherson- Opposed to having any type of Medical Marijuana Blair Ball - Opposed to Medical Marijuana establishments Marshall Cammack- Opposed to Medical Marijuana establishments Nancy Hall - Opposed to Medical Marijuana establishments Closed the Public Hearing 9:13 p.m. Motion by Council Member Berg, Seconded by Council Member St. Martin to deny Ordinance No. 971 and direct staff to follow through with Code Enforcement Actions. Vote: 3/1 (Council Member Gall voted no on the denial). b. Ordinance No. 972 — An Ordinance of the City Council of the City of Beaumont, California Requiring Payment of Development Impact Fees for Recycled Water Facilities, Appointing Time and Place of a Public Meeting and of a Public Hearing and Directing Notice Thereof, Describing the Proposed Boundaries of Benefit Area. Recommendation: Hold a Public Hearing; Approve the first reading of Ordinance No. 972; and Authorize the Mayor to execute the Project Progress Report. Open Public Hearing 9:27 p.m. Judy Bingham - Opposed John Halliwill - Neutral No action taken. Public Hearing will be continued to September 21, 2010 at 6:00 p.m. C. Soils Excavation Agreement for the Beaumont Industrial Park and Negative Declaration No. 10 -NO -07 Recommendation: 1) Hold a Public Hearing; 2) Adopt Negative Declaration No. 10 -ND- 07; 3) Approve the Soils Excavation Agreement and Project Progress Report between the City and Canyon Ridge Contractors; and 4) Authorize the Mayor to execute the Agreement and Project Progress Report. Staff report was given by Chris Tracy, Staff Planner. Open Public Hearing 9:40 p.m. Judy Bingham - Opposed Closed Public Hearing 9:42 p.m. Motion by Council Member Berg, Seconded by Council Member St.Martin to Adopt Negative Declaration No. 10- ND -07, Approve the Soils Excavation Agreement and Project Progress Report between the City of Beaumont and Canyon Ridge Contractors, and Authorize the Mayor to execute the agreement and project progress report. Vote: 4/0 Adjournment of the City uncil Meeting at 9:42 p.m. f, Res p y Su i , Alan K ani City M aget STAFF REPORT Agenda Item TO: Mayor and Council Members FROM: City Manager DATE: August 17, 2010 SUBJECT: Authorize Request for Proposals and Agreement for Wastewater Operations, Maintenance and Management Background and Analysis: On June 30, 2010, a notice of termination was issued to United Water in accordance with their agreement to provide operations, maintenance and management (OM &M) of the city's wastewater collection and treatment facilities. On July 26, 2010, a written request was made to United Water to continue to provide day to day services until such time as their proposal to significantly increase compensation for ongoing services could be reviewed in light of other proposals solicited by the city to provide OM &M services. The request was rejected by United Water which thereby necessitated the issuance of a temporary contract to Utility Partners, LLC. On an emergency basis in order to protect the health, safety and welfare of the public until such time as the City Council awards a new contract for OM &M services. Recommendation: Staff recommends RATIFICATION of the temporary services agreement with Utility Partners, LLC subject to the authority of the City Attorney to make non - substantive changes, APPROVAL of the Project Progress Report and AUTHORIZATION of the Mayor to execute the Project Progress Report directing the City Manager to solicit a Request for Proposals for long term operation, management and maintenance of the city's wastewater collection and treatment facilities. Resp9offufiy submitted: CI O BEAU T A an C. apam as City Manager o� BEgG� U ? City of Beaumont AWARD OF NEW PUBLIC WORKS CONTRACT NAME OF PR03ECT: Wastewater OM &M FUNDING SOURCE: Sewer Enterprise Funds PR03ECT N0. (intemal use) CONTRACT DATE: 8 -17 -2010 CONTRACTOR: Utility Partners, LLC CONTRACT AMOUNT: $ 344,100 TYPE OF CONTRACT BIDDING REQUIREMENTS WHO SHALL AUTHORIZE 1. Road & Sewer Maintenance/ Repair a. & b. No formal bids, but must obtain informal proposals, unless sole source only, a. City Manager _ a. $0- $10,000.00 no competitive bid proposals, or public x_ b. Over $10,000.00 emergency. b. City Council 2. All Projects except road and sewer maintenance/ repairs. _ a. $0 - $5,000.00 a. No Formal bid, but must obtain informal a. City Manager proposals unless: (see above). b. $5,001.00 - $10,000.00 b. Formal bidding required, unless CM finds bidding impossible and unnecessary, sole b. City Manager source only, or emergency (see No. 3 below). _ c. Over $10,000.00 c. Formal bidding required, unless CM finds c. City Council bidding impossible and unnecessary, sole source only, or emergency (see No. 3 below). 3. Emergency (There must be a threat to public health, safety, property). _ a. Road and sewer emergencies: a. No formal bids or informal proposals. (i) City Manager (i) $0 - $10,000.00 (ii) City Manager, with (ii) Over $10,000.00 subsequent City Council ratification by 4/5 vote. _ b. All other emergencies: (i) $0 - $5000.00 b. No formal bids or informal proposals. (i) City Manager (ii) Over $5,000.00 (ii) City Council with sequent City Council ratification by 4/5 vote. I have reviewed the award of work under this contract in accordance with Beaumont Municipal Code: Title 3 — Section 3.02. Public Works Director: Date: City Attorney: AUTHORIZATION Date: City Manager: Date: TT,, Mayor: (as applies) Date: , �V September 14, 2010 City of Beaunwnt 550 E. 6r11 So-ect 6enun1011r, CA 92223) (951) 769 -8520 FAX (951) 769 -8526 Email: cityliall @ci_17c("" 011t.ca.us 14/1'VLV.ci.l)et1'11 HI o I I Lctl.IIS Utility Partners, LLC 44 Old Canton Street Alpharetta, GA 30004 RE: Agreement for Professional Utility Management Services for the City of Beaumont To whom it may concern: lease find one full executed original copy of the above referenced Enclosed p y agreement which was approved at the regular City Council meeting of August 17, 201 for your files. Sincerely, C Shelby Hanv Deputy City rk August 24, 2010 Mr. Gerald Addington 0�y o Beattinant „O F. orli �irivr r1,�, FI!<<lll; i in /1 'llll�� 'tl. {�t'�llUIIt111CC�1.11� lLit 'lb'.�Ll'�5111111i�11r.C�Ll1� Aquarion Operating Services 151 N. Delaware St. , Suite 2025 Indianapolis, IN 46204 Subject: Status of AOS Invoices Dear Mr Addington: Aquarion Operating Services (AOS) was under contract to provide operations, maintenance and management (OM &M) services to the City of Beaumont. These services included maintaining the wastewater treatment plant and lift stations as well as sewerage collection systems citywide. These OM &M services required Aquarion to assume financial responsibility for violations of Federal & State Regulations. The Regional Water Quality Control Board, Santa Region issued two Administrative Civil Liabilities Complaints ( ACL # R8- 2009 -0068 and R8- 2010 -0022) to the City for unauthorized discharges of wastewater from the Western Knolls Lift Station and several other lift stations, and the Marshall Creek Lift Station. The amount of the monetary fines resulting from these unauthorized discharges are $ 99,900 and $111,000 respectively. To avoid further penalties and accrued interest, the City paid the fines on Aquarion's behalf. Since then, the City sent you two separate letters demanding reimbursement. As of August 23, 2010, we have not been reimbursed. Because AOS has not reimbursed the City, the City is withholding the payment of AOS's invoices from April through July 31, 2010 totaling $ 252,422.40. Please be advised that there are other costs associated with the spills, including City staff time, and costs incurred for hiring outside contractors to assist in the cleanup of the aforementioned spills. In addition, other mandatory penalties are presently being calculated for violations of NPDES Permit numerical limits while AOS was operating the City's wastewater system. AOS has been asked to prepare a report about these additional violations, but the information has not been provided. These additional penalties are expected to be substantial. Therefore, the total amount that is due from AOS for violations of NPDES Permit limitations and other Federal & State regulations is expected to exceed the amount being withheld by the City. Sincerely, City of Beaumont Deepak Moor P.E. City Engineer Cc: Alan Kapanicas, City Manager Joe Aklufi, City Attorney PI E Allen Harralson Chief Plant Operator Beaumont California P.O.Box 771 , 19101 Jonathan Street Adelanto CA. 92301 (951) 505 -9102 Allen.Harralson@Unitedwater.com July 31, 2010 City of Beaumont, Turnover of operations and maintenance of wastewater plant and collection system (including lift stations) At 23:59 and 59 seconds on July 31" 2010 United Water Staff turn over the operations and maintenance of the city of Beaumonts wastewater treatment plant #1 and the associated collection system (including lift stations)to the City of Beaumont and /or it's reprisentatives. Included in this turnover are copies of United Water's staff safety and training records. United Water represen- Date: -- `)' / _ � 0 City Representative /11< Date: J- l -1 C /J . s' Allen Harralson Chief Plant Operator Beaumont California P.O.Box 771 19101 Jonathan Street Adelanto CA. 92301 (951) 505 -9102 Allen. Harralson @Unitedwater.com July 30, 2010 City of Beaumont, Turnover of Hach JOB Cal program United Water staff has turned over to the city of Beaumont a copy of the Hach JOB Cal Program Serial # 291RJP2950 for them to use in the operation and maintenance of the wastewater treatment plant. United Water representative Date: City Representative Date: 7-.3� Sincerely, e 151 +N. Delaware St., Ste 2025 Indianapolis,IN 46204 TEL 317- 637 -6206 FAX 317 -637 -6282 WWW.UNrT'EDWATER.COM July 27, 2010 Mr. Alan Kapanicas City Manager City of Beaumont 550 E. 6th 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: United Water has made plans to discontinue providing day to day operations and maintenance at the Beaumont facilities in accordance with your Notice of Termination dated June 30, 2010. After not receiving a response to our July 19th letter or my phone message to you on July 20, we inquired with the Assistant Director of Public Works, who informed us that it was still the City's intention to terminate the contract. It is our preference to maintain this termination date. We are prepared to work with the City to facilitate the transition steps required to turn the operations over to the City or its selected contractor at the end of the day on July 31, 2010. If you require United Water to continue operations for an additional thirty days, it will be necessary to make payment of the four outstanding invoices before the close of business Friday. July 30, 2010. These invoices are dated 04/01/2010, 05/01/2010, 06/01/2010, and 07/01/2010 and are for an amount of $63,105.60 each. Please confirm your intentions immediately, as the transition plan is well under way. In either case, United Water will make every effort to provide a smooth transition to the new Operator. Sincerely, Gerald Addington Vice President and Division Manager July 26, 2010 C ity of Beaumont -,iO E. 6rll �rlvcr St,m iritmr, cA 9222 (L)Sl? 769 -152D F,A,V 1951) 7(,Q_, 5 6 Erii,iil: r iry�lr�lll <<��i.L�r °�iltrno�rr.c�r.n� i.11f',I// Moll VC1l.11S VIA FAX AND U.S. MAIL Mr. Gerald Addington Vice President and Division Manager United Water 151 N. Delaware St., Ste 2025 Indianapolis, IN 46204 Re: Professional Services Agreement for Operation & Maintenance of City of Beaumont's Wastewater Treatment Facility and Sewer System Dear Mr Addington: Thank you for your letter and proposal dated July 19, 2010 regarding the above referenced matter. The proposal has been forwarded to the City Attorney and Public Works Department for review and recommendation. Due to the summer vacation schedules of City staff, it may take approximately thirty (30) days to review the proposal, during which time we understand you will continue to provide day to day operations at the treatment facility until further notice. Please let me know immediately if this understanding is not acceptable. Very truly yours CITY OF BEAUMONT � Ian Kapanica�-- City Manager 151 N. Delaware St., Ste 2025 Indianapolis,IN 46204 TEL 317-637-6206 C LL:317- 946 -8458 317 - 637 -6282 W.UNITEDWATER.COM July 19, 2010 Via Fax (951- 769 -8526) Mr. Alan Kapanicas City Manager City of Beaumont 550 East 6th Street Beaumont, CA 9222' ) 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 June 30, 2010 letters to Bob Ashfield. Please address any future correspondence to me at the above address. I would like to reiterate the verbal offer I made to Mr. Moor .ani when we met earlier this month: As previously communicated to the City, United Water is not responsible for the sewage spills that occurred between March and September 2009. These facilities were never part of United Water's scope of work under the contract. While we cannot in any way take responsibility for that spill, we are willing to adjust our fee on a going forward basis in connection with the proposed contract amendment to help the City meet its budget. At the same time, we would add the lift stations to our scope of work and clean up other items in the contract. Accordingly, we would be willing to offer a reduction in our fee of $5,000 /month for ten months to assist the City in connection with the contract amendment. Paying the following with regard to the December 18, 2009 spill: 1. 50% of the penalties 2. 50% of the clean up costs, up to a maximum amount of $50,000. The foregoing offer is made for settlement purposes, without prejudice to any legal or factual matter. We were disappointed to receive the contract termination notice and would like to discuss with you the possibility of continuing the contract on terms that are equitable to both parties. If the City still prefers to terminate the contract, we will coordinate with you in a professional manner on the contract transition. Please contact me at your earliest convenience to discuss the above. Sincerely, j4 Gerald Addington Vice President and Division Manager lty O Beamnant ,i0 E. (Irli �n cr 1 "t"11ni<<)irr. «1 a>>>; ( `) i 1) 769-S520 FIX 9. 1) 769 -S 26 .010 [Mail: LL" lL '61i.tl.lhYI11111��fILc�il.ili Mr. Robert Ashfield Vice President Aquarion Operating Services (AOS ) 1707 Averill Avenue San Pedro, CA 907732 Reference: Administrative Civil Liability Compliance ( ACL # R8- 2009 -0068) and Notice of Termination of Services Dear Mr. Ashfield: You were sent a demand notice dated December 1, 2009 for reimbursement of Administrative Civil Liability in the amount of $99,000 ( Ninety nine thousand dollars) that was levied by the Santa Ana Regional Water Quality Control Board for numerous spill associated with the Desert Knolls Lift Station. You were required to remit the above amount to the City no later than December 10, 2010. To date, the City has not received the required penalty amount. Therefore we are holding you in breach of AOS contract with the City. A copy of the December 1, 2009 letter is enclosed for your reference. This is to also inform you that effective July 31, 2010 your services for the operation and maintenance of City's sewerage collection system and the wastewater treatment plant are terminated. Please make arrangements with the City staff to hand over the inventory of equipment, related reports and documents in your staff's possession by July 26, 2010. Should you have any questions please contact Mr. Kishen Prathivadi, Assistant Director of Public Works at 951- 769 -8520. Very City Manage Carla E. Hjelm Senior Corporate Attorney — Operations 200 Old Hook Road Harrington Park, NJ 07640 TEL 201 - 767 -2886 FAX 201 - 767 -7018 carla.hjelm@unitedwater.com WWW.UNITEDWATER.COM February 18, 2010 Mr. Alan Kapanicas City Manager City of Beaumont 550 East 6th 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 Liabilit Com laint 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. Standiniz 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 19`h . 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, Carla E. Hjelm Senior Corporate Attorney — Operations cc: Bob Ashfield February 8, 2010 C ity of Beaumont 550 E. 6tli Street Beaumont, CA 92223 (951) 769 -8520 FAX (951) 769-8526 Email: cityliall @ci.beaumont,ca.its www.ci.beaunaont.ca.us 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 18`h 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 19th 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.la 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 l requirements of the NPDES Permit, and to strictly comply with all other applicable • federal, state and county statutes, ordinances dBe � fforts °' a Additionally, l .p "Hold required to comply with Clause D. Lb "Implement 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, AOS is clean up and the other actions tha f enforcement during ctin �� are incident. aken by Also, regulatory liable to remedy the consequences 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 an K anica, City Manager Cc: J.S. Aklufi- City Attorney December 1, 2009 Mr Robert Ashfield C ity of Beaumont 550 E. wh tirtvcr [;C111►► ►►o► ►r, t "A 0222.3 (951) 769 -5570 FAX (95!) 7694526 Email: ►►s wwtv.t O c miiii,mr.c a. its 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 r (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 Alan Kapanfea City Manager Encl: ACL complaint December 1, 2009 Mr Robert Ashfield City of Beaumont 5i0 E. r111 ;r►tvt Bt'anlnry ►ir, t -A Q222.3 (951) 769-Si-70 FAX ( x)51) 4,9-S526 Email: i iryl ialb"t- i. /"'i1N111011r. id. IIN 6L'LVLVil.j)t,a ntmr.,-a.l1s 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 ADS 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 t0, 2009. Very t ) CITY/OF B &Iapani YK ea City Manager Encl: ACL complaint