HomeMy WebLinkAbout05-15-13 FA&C Committee Packet 1
OTAY WATER DISTRICT
FINANCE, ADMINISTRATION AND COMMUNICATIONS
COMMITTEE MEETING
and
SPECIAL MEETING OF THE BOARD OF DIRECTORS
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
BOARDROOM
WEDNESDAY
May 15, 2013
11:30 A.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. REPORT ON DIRECTORS’ EXPENSES FOR THE 3RD QUARTER OF FISCAL
YEAR 2013 (WALES) [5 minutes]
4. APPROVE A FIVE-YEAR UNIFORM AGREEMENT [THREE-YEARS, WITH
TWO (2) ONE-YEAR OPTIONS] WITH MISSION LINEN SUPPLY, INC. FOR
UNIFORM, LAUNDRY, FLOOR MAT, AND TOWEL SERVICES IN AN AMOUNT
NOT-TO-EXCEED $165,000 (DOBRAWA) [5 minutes]
5. DECLARE IDENTIFIED VEHICLES AND EQUIPMENT AS SURPLUS TO THE
DISTRICT’S NEEDS (DOBRAWA) [5 minutes]
6. APPROVE A TWO-YEAR AGREEMENT WITH BROWNSTEIN HYATT FARBER
& SCHRECK IN AN AMOUNT NOT-TO-EXCEED $35,000 ANNUALLY ($70,000
TOTAL ENDING JUNE 30, 2015) FOR STATE AND FEDERAL LEGISLATIVE
ISSUES ADVOCACY (BUELNA) [5 minutes]
2
7. APPROVE AN AGREEMENT WITH NEW CINGULAR WIRELESS PCS, LLC, A
DELAWARE LIMITED LIABILITY COMPANY FOR THE INSTALLATION OF A
COMMUNICATIONS FACILITY AT THE 1296-1, 2, AND 3 RESERVOIRS SITE
(MARTIN) [5 minutes]
8. APPROVE A FIVE-YEAR AGREEMENT WITH INFOSEND TO PROVIDE BILL
PRINT AND ELECTRONIC BILL PRESENTMENT SERVICES IN AN AMOUNT
NOT-TO-EXCEED $1,310,000 ($262,000 ANNUALLY); AND WITH
ELECTRONIC PAYMENT EXCHANGE TO PROVIDE PAYMENT
TRANSACTION PROCESSING SERVICES IN AN AMOUNT NOT-TO-EXCEED
$735,000 ($147,000 ANNUALLY)
9. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Mitch Thompson, Chair
Jose Lopez
All items appearing on this agenda, whether or not expressly listed for action, may be
deliberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the
District’s website at www.otaywater.gov. Written changes to any items to be considered
at the open meeting, or to any attachments, will be posted on the District’s website.
Copies of the Agenda and all attachments are also available through the District Secre-
tary by contacting her at (619) 670-2280.
If you have any disability which would require accommodation in order to enable you to
participate in this meeting, please call the District Secretary at 670-2280 at least 24
hours prior to the meeting.
Certification of Posting
I certify that on May 10, 2013 I posted a copy of the foregoing agenda near the
regular meeting place of the Board of Directors of Otay Water District, said time being at
least 24 hours in advance of the meeting of the Board of Directors (Government Code
Section §54954.2).
Executed at Spring Valley, California on May 10, 2013.
______/s/_ Susan Cruz, District Secretary _____
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 5, 2013
SUBMITTED BY:
Wales Benham Senior Accountant
PROJECT: DIV. NO. All
APPROVED BY: Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Director’s Expenses for the 3rd Quarter of Fiscal Year 2013
GENERAL MANAGER’S RECOMMENDATION:
This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A. PURPOSE:
To inform the Board of the Director’s expenses for the 3rd quarter of Fiscal Year 2013. ANALYSIS:
The Directors’ expense information is being presented in order to comply with Otay’s Board of Directors Policy 8, requiring staff to
create a quarterly report showing expenses for the Directors. In addition, California Government Code Section 53065.5 requires special districts, at least annually, to disclose any reimbursement paid by a
district within the immediately preceding fiscal year. The disclosure requirement shall be fulfilled by including the reimbursement
information in a document published or printed, at least annually by
AGENDA ITEM 3
2
a date determined by that district, and shall be made available for public inspection. (See Attachment B for Summary and C-H for
Details.) FISCAL IMPACT:
None.
STRATEGIC GOAL:
Prudently manage District funds. LEGAL IMPACT: Compliance with state law.
Attachments: Attachment A Committee Action
Attachment B Director’s Expenses and per Diems Attachment C-H Director’s Expenses Detail
ATTACHMENT A
SUBJECT/PROJECT:
Director’s Expenses for the 3rd Quarter of Fiscal Year 2013
COMMITTEE ACTION:
This is an informational item only.
NOTE:
The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any
discussion or changes as directed from the committee prior to presentation to the full board.
BOARD OF DIRECTORS’
EXPENSES AND PER-DIEMS
FINANCE, ADMINISTRATION AND COMMUNICATIONS COMMITEE MEETING
May 15, 2013
ATTACHMENT B
Policy 8 requires that staff present the Expenses and
Per-Diems for the Board of Directors on a Quarterly
basis:
•Fiscal Year 2013, 3rd Quarter.
•The expenses are shown in detail by Board
member, month and expense type.
•This presentation is in alphabetical order.
•This information is to be presented to the Finance,
Administration, and Communications Committee
on May 15, 2013.
Board of Directors’ Expenses and Per-Diems
Fiscal Year 2013 Quarter 3 (Jan 2013 - Mar 2013)
Director Croucher $200.00
Director Gonzalez $1,805.00
Director Lopez $1,450.34
Director Robak $1,186.77
Director Thompson $1,398.97
Total $6,041.08
Director Croucher
Fiscal Year 2013 Quarter 3
Jan 2013 Feb 2013 Mar 2013
Business Meetings 0.00 0.00 0.00
Director’s Fees 0.00 200.00 0.00
Mileage Business 0.00 0.00 0.00
Conferences and Seminars 0.00 0.00 0.00
Travel 0.00 0.00 0.00
Monthly Totals 0.00 200.00 0.00
Quarterly Total $200.00
Fiscal Year-to-Date 2013 (Jul 2012-Mar 2013) $1,460.00
Meetings Attended 2 2 0
Meetings Paid 0 2 0
Director Gonzalez
Fiscal Year 2013 Quarter 3
Jan 2013 Feb 2013 Mar 2013
Business Meetings 50.00 0.00 0.00
Director’s Fees 400.00 300.00 500.00
Mileage Business 0.00 0.00 0.00
Conferences and Seminars 555.00 0.00 0.00
Travel 0.00 0.00 0.00
Monthly Totals 1,005.00 300.00 500.00
Quarterly Total $1,805.00
Fiscal Year-to-Date 2013 (Jul 2012-Mar 2013) $3,454.00
Meetings Attended 4 3 8
Meetings Paid 4 3 5
Director Lopez
Fiscal Year 2013 Quarter 3
Jan 2013 Feb 2013 Mar 2013
Business Meetings 25.00 79.00 0.00
Director’s Fees 700.00 500.00 0.00
Mileage Business 50.29 28.25 0.00
Mileage Commuting 22.60 45.20 0.00
Conferences, Seminars, and Travel 0.00 0.00 0.00
Monthly Totals 797.89 652.45 0.00
Quarterly Total $1,450.34
Fiscal Year-to-Date 2013 (Jul 2012-Mar 2013) $5,224.35
Meetings Attended 11 8 0
Meetings Paid 7 5 0
Director Robak
Fiscal Year 2013 Quarter 3
Jan 2013 Feb 2013 Mar 2013
Business Meetings 25.00 15.00 25.75
Director’s Fees 200.00 300.00 100.00
Mileage Business 33.90 16.95 3.39
Mileage Commuting 2.26 2.26 2.26
Conferences, Seminars, and Travel 460.00 0.00 0.00
Monthly Totals 721.16 334.21 131.40
Quarterly Total $1,186.77
Fiscal Year-to-Date 2013 (Jul 2012-Mar 2013) $2,287.22
Meetings Attended 4 4 2
Meetings Paid 2 3 1
Director Thompson
Fiscal Year 2013 Quarter 3
Jan 2013 Feb 2013 Mar 2013
Business Meetings 0.00 64.00 16.00
Director’s Fees 300.00 300.00 0.00
Mileage Business 6.90 29.38 0.00
Mileage Commuting 29.38 98.31 0.00
Conferences, Seminars, and Travel 460.00 0.00 0.00
Monthly Totals 891.28 491.69 16.00
Quarterly Total $1,398.97
Fiscal Year-to-Date 2013 (Jul 2012-Jan 2013) $3,610.88
Meetings Attended 7 7 0
Meetings Paid 3 3 0
Board of Directors’ Expenses and Per Diems
Fiscal Year 2013 to Date (Jul 2012 - Mar 2013)
Director Croucher $1,460.00
Director Gonzalez $3,454.00
Director Lopez $5,224.35
Director Robak $2,287.22
Director Thompson $3,610.88
Total $16,036.45
Board of Directors’ Expenses and Per Diems
Fiscal Year 2013 Projected (July 2012- June 2013)
Director Croucher $1,950.00
Director Gonzalez $4,600.00
Director Lopez $6,970.00
Director Robak $3,050.00
Director Thompson $4,810.00
Total $21,380.00
Based on nine months of actuals
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 5, 2013
PROJECT: Various DIV. NO. ALL
SUBMITTED BY:
Stephen Dobrawa, Purchasing and Facilities Manager
APPROVED BY: Rom Sarno, Chief of Administrative Services
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: AUTHORIZATION TO ENTER INTO A FIVE-YEAR AGREEMENT WITH MISSION LINEN SUPPLY, INC. FOR UNIFORM, LAUNDRY, FLOOR MAT, AND TOWEL
SERVICES IN AN AMOUNT NOT-TO-EXCEED $165,000
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to enter into a five-
year uniform agreement (three-years, with two (2) one-year options) with Mission Linen Supply, Inc. for uniform, laundry, floor mat, and
towel services in an amount not-to-exceed $165,000. COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To obtain Board authorization to enter into a five-year uniform service agreement with Mission Linen Supply, Inc, to provide employee
uniform, laundry, floor mat, and towel services in an amount not-to-exceed $165,000. ANALYSIS:
The District’s current five-year uniform service agreement with Prudential Overall Supply will expire on July 1, 2013. Under this agreement, the District leases uniform shirts, pants, and shorts and
obtains laundry services for those employees required to wear a District uniform. Additionally, under this agreement floor mat and
shop/shower towel service is provided. The annual cost for all services is $49,500, or $247,500 over the agreement’s five-year term.
AGENDA ITEM 4
On April 18, 2013, five vendors submitted bids for these services as follows:
Mission Linen Unifirst Cintas Aramark Prudential
Year 1 31,794.10 35,434.22 46,044.86 47,646.04 52,647.40
Year 2 32,592.61 35,852.56 46,044.86 49,002.20 54,305.02
Year 3 33,424.77 36,278.46 46,044.86 50,385.40 55,490.97
Option Year 1 33,424.77 36,708.52 46,044.86 51,747.80 58,096.64
Option Year 2 33,424.77 37,147.44 46,044.86 53,139.32 59,203.82
Total $164,661.02 $181,422.19 $230,224.28 $251,920.76 $279,503.85
The lowest bidder, Mission Linen Supply, Inc., has provided uniform
services to the District in the past and the District is confident that they understand and can meet the District’s current
requirements.
The proposed agreement represents an approximate five-year cost reduction of 33% or $82,500. FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The proposed FY 2014 Operating Budget for uniforms and uniform services is $53,500. A review of planned expenditures for this budget indicates that there will be sufficient funds available to
cover the Year-1 cost of $31,794.10. STRATEGIC GOAL: The proposed agreement supports the District’s Financial Goal to
“Provide enhanced value by directing and managing the financial issues that are critical to the District”.
LEGAL IMPACT:
None.
Attachments: Attachment A – Committee Action Report
ATTACHMENT A
SUBJECT/PROJECT:
AUTHORIZATION TO ENTER INTO A FIVE-YEAR AGREEMENT WITH
MISSION LINEN SUPPLY, INC. FOR UNIFORM, LAUNDRY, FLOOR MAT, AND TOWEL SERVICES IN AN AMOUNT NOT-TO-EXCEED $165,000
COMMITTEE ACTION:
The Finance, Administration and Communications Committee met on May 15, 2013 to review this item. The Committee supports presentation to
the full Board for their consideration. NOTE:
The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any
discussion or changes as directed from the committee prior to presentation to the full Board.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 5, 2013
SUBMITTED BY:
Stephen Dobrawa,
Purchasing Manager
PROJECT: Various DIV. NO. ALL
APPROVED BY: Rom Sarno, Chief of Administrative Services
German Alvarez, Asst. General Manager
Mark Watton, General Manager
SUBJECT: DECLARATION OF SURPLUS VEHICLES AND EQUIPMENT
GENERAL MANAGER’S RECOMMENDATION:
That the Board declare the identified vehicles and equipment as
surplus to the District’s needs. COMMITTEE ACTION: See “Attachment A”.
PURPOSE: To present a list of vehicles and equipment and obtain Board
declaration that the items identified on the list are surplus to the District’s needs. ANALYSIS:
Listed below are various vehicles and equipment that have been
determined by the user departments to be of no use, obsolete (spare parts and service not available), beyond useful life and, or, not
AGENDA ITEM 5
2
cost effective to repair or operate and therefore, surplus to the District’s needs.
Vehicles Identified as Surplus
Item Qty Description Reason for Declaration
1 1
Unit 94, 1996 Ford Superduty Utility
Truck, FA#8094, VIN 1FDLF7G3TEB38026, 86,018 miles.
No longer cost effective to maintain and operate.
Vehicle has been replaced and is no longer required.
2 1 Unit 126, 2001 Ford F-250 Utility Truck, FA#8126, VIN 1FTNF20L51EB16504,
98,112 miles.
No longer cost effective to maintain and operate. Vehicle is no longer required.
3 1
Unit 103, 1998 Chevrolet C-3500 Dump
Truck, FA#8103, VIN 1Gkbc34f4wf045646, 90,903 miles.
No longer cost effective to maintain and operate.
Vehicle has been replaced and is no
longer required.
4 1
Unit 56, 1995 Ford LT9000 Dump Truck,
FA#8056, VIN# 1FDYU90L4RVA25176, 160,194 miles.
No longer cost effective to maintain and operate.
Vehicle has been replaced and is no longer required.
Equipment Identified as Surplus
Item Qty Description Reason for Declaration
5 1 FA#3154, 1985 Light Tower/Trailer, VIN86079896
No longer meets
operational specifications or requirements. Replaced.
6 1 FA#2750, 1995 Power-Vac Vacuum/Trailer, License #949609
No longer cost effective to maintain and operate and is no longer required.
7 1 FA#920, 1984 Eager Beaver Trailer, VIN 112TXT207EA200014
No longer meets operational
specifications or requirements. No longer
cost effective to maintain and operate and
is no longer required.
3
8 1 FA#1921, 1984 Eager Beaver Trailer, VIN 112TDV304LA034535
No longer meets
operational specifications or
requirements. No longer cost effective to
maintain and operate and is no longer required.
5 1 Forklift, Champ, FA# 435 No longer required.
Before vehicles and equipment (where the individual acquisition cost exceeded $5000) can be disposed of, the Board must first declare the items as surplus (ref: Purchasing Manual, Section 12).
The District’s Purchasing Manual identifies the process for disposing of material, equipment, and supplies that have been declared surplus. Typically, items declared surplus are disposed of by sale through public auction.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The salvage value and associated gain or loss on items is not
determined until their disposal. Therefore, the fiscal impact of the recommended action is not known at this time. STRATEGIC GOAL:
This action supports the District’s goal to ensure financial health through efficient operations.
LEGAL IMPACT:
None.
Attachments: Attachment A – Committee Action
ATTACHMENT A
SUBJECT/PROJECT:
COMMITTEE ACTION:
The Finance, Administration and Communications Committee met on
May 15, 2013 to review this item. The Committee supports presentation to the full Board for their consideration. NOTE:
The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item,
or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board.
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 5, 2013
SUBMITTED BY:
Armando Buelna
Communications Officer
PROJECT: Various DIV. NO. ALL
APPROVED BY:
Mark Watton, General Manager
SUBJECT: Authorize Agreement with Brownstein Hyatt Farber Schreck (BHYF) for State and Federal Legislative Issues Advocacy
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors authorize
the General Manager to execute a two-year Agreement with Brownstein Hyatt Farber Schreck (BHFS) in an amount not-to exceed $35,000
annually ($70,000 total ending June 30, 2015) for state and federal legislative issues advocacy. COMMITTEE ACTION:
See "Attachment A". PURPOSE: To obtain Board authorization for the General Manager to enter into a
Consulting Services Agreement with Brownstein Hyatt Farber Schreck for an amount not-to-exceed $35,000 annually commencing July 1, 2013
for two years ($70,000 total ending June 30, 2015) for professional and consulting services for District related state and federal legislative issues advocacy. ANALYSIS:
Procedures governing the selection of general consultants in the performance of District work are outlined in the District's
Purchasing Procedures Manual.
AGENDA ITEM 6
2
The District has a time and service consulting agreement with BHFS for legislative advocacy services. This action will replace the
consultant's Legislative Issues and Service Agreement that expires on June 30, 2013 and authorizes the General Manager to execute a two-year Agreement with BHFS in an amount not-to exceed $35,000 annually ($70,000 total) through June 30, 2015 for state and federal legislative issues advocacy. This action would provide for a
continuation of services with BHFS acting as government relations advocate and counsel in Sacramento and Washington DC. Based on past work, experience, knowledge, contacts and access to key legislators both in Sacramento and Washington DC, the District feels
BHFS is uniquely qualified to best meet the District's needs for state and federal legislative issues advocacy.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Legislative advocacy is included in the General Manager's Outside Services budget. The total Fiscal Year 2013 budget for Legislative Advocacy is $35,000. Total expenditures, plus outstanding commitments
for general legislative advocacy to date are $21,435. Based on a financial review of the General Manager's budget, the Communication
Officer has determined that the budget is sufficient to support the general legislative advocacy services through the end of the Fiscal Year.
A funding request for the Agreement has been included in the Fiscal
Year (FY) 2014 budget and will be included in the FY 2015 budget equest. Funds will be expended in FY 2014 and FY 2015. r STRATEGIC GOAL:
This action supports the District's goal for providing the best
quality water service to the customers of the Otay Water District. LEGAL IMPACT: None.
Attachments: Attachment A – Committee Action
Attachment B –
ATTACHMENT A
SUBJECT/PROJECT:
Authorize Agreement with Brownstein Hyatt Farber Schreck (BHYF) for State and Federal Legislative Issues Advocacy
COMMITTEE ACTION:
NOTE:
The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent
to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to
presentation to the full board.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: June 5, 2013
SUBMITTED BY: Dan Martin
Engineering Manager
PROJECT/
SUBPROJECT:
AS001-
CS0005
DIV. NO. 5
APPROVED BY:
Rod Posada, Chief, Engineering
German Alvarez, Asst. General Manager
Mark Watton, General Manager
SUBJECT: Request to Approve Agreement with New Cingular Wireless PCS,
LLC, a Delaware Limited Liability Company, for the
Installation of a Communications Facility at the 1296-1, 2, &
3 Reservoir Sites
GENERAL MANAGER'S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
authorize the General Manager to execute an agreement with New
Cingular Wireless PCS, LLC, a Delaware Limited Liability Company (New
Cingular) for the installation of a communications facility at the
1296-1, 2, & 3 Reservoir Sites (see Exhibit A for Project Location).
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To obtain Board approval authorizing the General Manager to execute
an agreement (see Attachment B) with New Cingular that allows the
installation of a communications facility at the 1296-1, 2, & 3
Reservoir Sites. The agreement will grant New Cingular the right to
use approximately 400 square feet of leased area.
AGENDA ITEM 7
2
ANALYSIS:
New Cingular will be the third cellular provider locating its
facilities on the 1296-1, 2, & 3 Reservoir Sites. Currently, T-
Mobile and Sprint PCS are the other two cellular providers at this
location. New Cingular is proposing to construct, operate, and
maintain an unmanned wireless communications facility consisting of
twelve (12) panel antennas which will be façade mounted to the side
of two (2) existing 33-feet high water tanks. Four (4) ground-
mounted base transceiver station (BTS) radio equipment cabinets shall
be enclosed in a 24-feet-10.5-inches(L) x 6-feet-2.5-inches(W) x 8-
feet(H) dark-tan concrete block enclosure to screen the equipment.
The overall lease area shall be comprised of approximately 400 square
feet. The facility shall have its own SDG&E electrical service/meter
and connection to landline telephone service.
As included in the proposed agreement, the tenant will have the
option to extend the term for three additional five-year periods.
Two additional five-year extensions may be granted at the District's
discretion. At the beginning of each extension term, the District
may choose to adjust the annual rent, effective the first year of
each extension term by four percent or the preceding five year
average of the San Diego Metropolitan CPI, whichever is higher.
The agreement also includes an initial $2,500 payment toward the
District's non-refundable administrative fee of $6,500 paid to
reimburse the District for staff time to supervise and assist in
conducting an investigation of the proposed premises, site selection,
planning, and design, including legal expenses; this fee is separate
from the rent. The remaining balance of $4,000 will be due and
payable upon execution of this agreement by both parties to reimburse
the District for administrative expenses and costs related to
District's supervision and assistance with construction phases of the
Project.
The District will receive copies of construction drawings, all
permits, and approvals by local regulatory agencies prior to granting
permission to start construction. Staff agrees with the design
concept for the proposed facility construction.
FISCAL IMPACT: Joseph Beachem, Chief Financial Officer
The District will receive $3,175 per month in rent effective upon
execution of the lease agreement for a period of five years, subject
to an annual inflation adjustment of four percent.
3
LEGAL IMPACT:
The agreement has been reviewed and approved by District General
Counsel for content and form.
STRATEGIC GOAL:
The District ensures its continued financial health through long-term
financial planning, formalized financial policies, enhanced budget
controls, fair pricing, debt planning, and improved financial
reporting.
DJM/RP:jf
P:\WORKING\CELLULAR LEASE FILE\AT&T (CINGULAR)\1296-1&2\staff report\BD 06-05-2013\BD 06_05_2013_Staff
Report_New Cingular @ 1296 3 res.doc
Attachments: Attachment A – Committee Action
Attachment B - Agreement
Exhibit A – Location Map
ATTACHMENT A
SUBJECT/PROJECT:
AS001-CS0005
Request to Approve Agreement with New Cingular Wireless
PCS, LLC, a Delaware Limited Liability Company, for the
Installation of a Communications Facility at the
1296-1, 2, & 3 Reservoir Sites
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee (Committee)
reviewed this item at a meeting held on May 15, 2013. The Committee
supported Staff's recommendation.
NOTE:
The "Committee Action" is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent
to the Board as a Committee approved item, or modified to reflect any
discussion or changes as directed from the Committee prior to
presentation to the full Board.
ATTACHMENT B
SUBJECT/PROJECT:
AS001-CS0005
Request to Approve Agreement with New Cingular Wireless
PCS, LLC, a Delaware Limited Liability Company, for the
Installation of a Communications Facility at the
1296-1, 2, & 3 Reservoir Sites
See attached lease agreement.
TELECOMMUNICATION FACILITY AGREEMENT
BETWEEN NEW CINGULAR WIRELESS PCS,LLC
AND OTAY WATER DISTRICT TO LOCATE A
COMMUNICATIONS FACILITY AT OTAY'S 1296 -1,
2 &3 RESERVOIR SITE
(13635 Bear Mountain Way)
This Telecommunication Facility Agreement (the "Agreement")is entered into and
effective on the date specified in the signature page (the "Commencement Date"),by and
between the Otay Water District,a municipal water district organized and operated pursuant to
the Water Code Section 71000,et seq.("Otay"),and New Cingular Wireless PCS,LLC,a
Delaware limited liability company ("Tenant").Special terms and conditions are set forth on
Exhibit A.
RECIJALS
A.Otay owns a site on which it has constructed water facilities known as the "1296 -
1,2 &3,"as depicted on Attachment A to Exhibit B (the "Reservoir Site").
B.Tenant has requested Otay to allow it to locate a communications facility and
transmitting and receiving antennas at the Reservoir Site pursuant to the terms and conditions set
forth herein.
C.Otay is willing to allow Tenant to locate the Facilities (defined below)at the
Reservoir Site pursuant to the terms and conditions set forth herein.
AGREEMENT
For good and valuable consideration,the receipt and sufficiency of which is hereby
acknowledged,Otay and Tenant agree as follows:
1.Premises.Otay owns the real property described in Attachment B to Exhibit B
(the "Property").Otay agrees to lease to Tenant,for the installation of antennas and related
telecommunications equipment,approximately 400 square feet of real property within the
Property, as more particularly described on Attachment C to Exhibit B (the "Premises").
2.Grant of Non-Exclusive Trench and Utility Easement(s).Upon written request
from Tenant,Otay agrees to grant a non-exclusive easement,as legally described and depicted in
Exhibit C to this Agreement (the "Easement"),for certain agreed-upon portions of the Property
for the purpose of trenching and for the installation and maintenance of the Otay approved
utilities needed by Tenant for the Facilities.It is expressly agreed that any such Easement shall
only be valid if signed by the parties and,if so,it shall run concurrently with this Agreement and
shall terminate automatically if this Agreement is terminated or ceases to exist for any reason.
Tenant agrees,holding Otay harmless for any cost or expense,to return any such Easement and
any portions of the Property disturbed in connection with the Facilities or any Tenant activity to
their original condition,or any other condition acceptable to Otay,as evidenced in advance of
the work in a writing signed by Otay representatives.
Tenant acknowledges that the Property is used in connection with Otay's storage and
delivery of water and other services to the public,and agrees that such uses by Otay are superior
in all respects to all uses by Tenant.Upon receipt of twelve (12)months written notice from
Otay (or less if six-months'notice cannot be reasonably given),Tenant shall at its sole expense
relocate its Easement to another mutually agreeable location within the Property.Otay and
Telecommunication Facilities Agreement Page 1 04.22.13
BEAR
PROJECT SITE
PI
O
N
E
E
R
W
A
Y
PROCTOR VALLEY RD
MOUNTAIN WAY
1296-3 Reservoir
1296-2 Reservoir
1296-1 Reservoir
PROJECTSITE
!
VICINITY MAP
NTS
?ò
Aä
?Ë
;&s
DIV 5
DIV 1
DIV 2
DIV 4
DIV 3
?p F
P:\
W
O
R
K
I
N
G
\
C
E
L
L
U
L
A
R
L
E
A
S
E
F
I
L
E
\
v
u
\
C
i
n
g
u
l
a
r
C
o
m
m
u
n
i
c
a
t
i
o
n
s
S
i
t
e
a
t
1
2
9
6
R
e
s
e
r
v
o
i
r
s
OTAY WATER DISTRICTCINGULAR WIRELESS PCS, LLC COMMUNICATIONS SITE1296-1, 1296-2 AND 1296-3 RESERVOIR SITE
EXHIBIT A
F
0 500250
Feet
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: June 5, 2013
SUBMITTED BY:
Andrea Carey
Customer Service Manager
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
German Alvarez, Assistant General Manager
Mark Watton, General Manager
SUBJECT: Authorize the General Manager to Negotiate and Enter into
Agreements for Billing and Payment Services with Infosend and
Electronic Payment Exchange (EPX)
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to negotiate and enter
into a two-year fixed with three option year renewals (five-year
term) with:
1) Infosend to provide bill print and electronic bill presentment
services in an amount not to exceed $1,310,000 ($262,000
annually); and with
2) Electronic Payment Exchange (EPX) to provide payment transaction
processing services in an amount not to exceed $735,000
($147,000 annually).
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To authorize the General Manager to negotiate and purchase services
from Infosend for bill print and electronic bill presentment services
and with Electronic Payment Exchange for payment transaction
processing services.
AGENDA ITEM 8
ANALYSIS:
The District bills approximately 50,000 customers each month (600,000
billings yearly) for water and sewer services. Of these, approxi-
mately 38,000 bills are mailed to customers every month with another
17,000 customers signed up to receive bills electronically (e-bill).
The District receives over 15,000 payments monthly via the website.
In 2008, the District entered into a five-year agreement with
Infosend to provide bill print and mailing services. In 2010, the
agreement was amended to allow Infosend and EPX to provide online
bill presentment and web payment services to the District. The
contract with Infosend and EPX will expire on June 30, 2013.
Request for proposals were sent to seven vendors for bill print and
electronic bill presentment and payment services and the District
received proposals from three of them. The costs for bill print and
electronic presentment services are as follows:
Bill Print Services
Vendor Annual Price
Infosend $262,000
Billtrust $276,000
Alacriti $294,000
Evaluation criteria consisted of the vendor’s ability to meet
District specifications; number of years experience in this type of
business and with accounts similar to Otay in size; competence and
customer service; on time experience in delivery of comparable goods
and services; financial stability; and cost.
InfoSend partners with payment processors EPX or Paymentus to verify
and transmit customer payments to the District. These payment
processors verify the credit card and banking information for each
transaction and then wire funds daily to Otay’s account with Union
Bank. Staff analyzed the fees charged by both EPX and Paymentus and
found EPX to be the lowest. The costs of services are as follows:
Payment Services
Vendor Annual Price
EPX $147,000
Paymentus $162,000
The performance of the EPX payment processing service has proved to
be efficient and reliable since staff began using the service in
2010.
Given the complexity and sensitive nature of these services, it is
recommended that the General Manager negotiate and enter into
agreements with Infosend and EPX that provides a two-year fixed term
with three option year renewals in amounts not to exceed the lowest
pricing submitted. This will allow the District to take advantage of
the current competitive process and minimize the impact changing
vendors has to the billing process. The agreements will ensure that
the vendors are unable to raise prices for five years and that the
District is able to terminate for cause at any time. Additionally,
after the initial two-year period, the District will have the option
not to renew should opportunities, circumstances or business
practices change. The agreements will run concurrently and expire at
the same time.
By continuing the relationship with Infosend and EPX the District’s
customers will see no change to their online accounts or bill print
delivery.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The annual cost for Infosend services will be approximately $262,000
and for EPX services will be approximately $147,000. The proposed
FY 2014 budget is sufficient to cover these costs.
STRATEGIC GOAL:
Evaluate the most cost effective and efficient processes and tools to
communicate service related issues to customers.
LEGAL IMPACT:
None.
Attachments:
Attachment A - Committee Action
ATTACHMENT A
SUBJECT/PROJECT:
Authorize the General Manager to Negotiate and Enter into
Agreements for Billing and Payment Services with Infosend
and Electronic Payment Exchange (EPX)
COMMITTEE ACTION:
The Finance, Administration and Communications Committee recommend
that the Board authorize the General Manager to negotiate and enter
into agreements for billing and payment services with Infosend and
Electronic Payment Exchange (EPX).
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for board approval. This report will be sent
to the Board as a committee approved item, or modified to reflect any
discussion or changes as directed from the committee prior to
presentation to the full board.