HomeMy WebLinkAboutCC 14 MGMNT LHMWC 07-02-90DATE:
TO:
FROM:
SUBJECT:
June 26, 1990
UU113GI1I W11-u1uni" liv. . i -r
7/2/90
Inter - Com
WILLIAM HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENVENGINEERING DIVISION
AGREEMENT FOR MANAGEMENT SERVICES OF THE LEMON
HEIGHTS MUTUAL WATER COMPANY (LHMWC)
RECOMMENDATION:
That the City Council, at their regular meeting of July 1990, approve an agreement
for management services with the Lemon Heights Mutual Water Company (LHMWC).
BACKGROUND:
On May 21, 1990, LHMWC lost its only employee. They requested that the City of Tustin
provide temporary operation and monitoring services for a period of 120 days.
The proposed agreement sets forth the terms and conditions under which the City
would provide such services.
DISCUSSION:
LHMWC has indicated that they want to pursue, with the City, the possibility of a long
term maintenance agreement which would provide expanded service and ultimately
possible annexation of their service area into the City's water service area.
Public ' Works is reviewing the necessary operational and maintenance parameters
associated with the LHMWC water system. Ultimate take over of their service area
would require an in-depth review of their financial obligations versus projected
revenue and impacts of the City's water rate structure.
LHMWC is located within the unincorporated County area and presently services
approximately five -hundred (500) services. The services area has limited growth
potential.
WX � . /1; 4— ; I
Bob Leden�Iublic
ker
Director of Works/City Eng.
BL/PR/ccr
Pablo Rodriguez I- --
Manager, Field Services
AGREEMENT FOR MANAGEMENT SERVICES
THIS AGREEMENT for OPERATION and MONITORING SERVICES (the
"Agreement") is made as of , 1990 between the
CITY OF TUSTIN WATER SERVICE, a municipal corporation ("Tustin"),
and LEMON HEIGHTS MUTUAL WATER COMPANY, a mutual water company
("LHMWC").
RECITALS
A. LHMWC has requested assistance from Tustin for daily
monitoring and operation of its water delivery system and to
perform emergency repairs on the water delivery system; and
B. Tustin has expressed its willingness to provide such
assistance on a temporary basis for 120 days commencing from May
21, 1990, to September 17, 1990, on the condition that all expenses
incurred by Tustin in providing such assistance are reimbursed; and
C. Tustin has commenced such assistance, beginning on May
21, 1990.
AGREEMENT
In consideration of the mutual promises contained in this
Agreement, LHMWC and Tustin agree as follows:
1. Tustin will perform daily monitoring and operation of the
LHMWC water delivery system at the following rates:
(a) WEEKDAYS
Pay Rate
Benefits and Overhead (33%)
Vehicle Expense
Total Hourly Rate
$12.207/Hr.
4.028/Hr.
4.50 /Hr.
$20.735
(b) WEEKENDS AND HOLIDAYS
1.5 x Hourly Pay Rate
Benefits and Overhead
Vehicle Expense
Total Hourly Rate
(c) MANAGEMENT AND SUPERVISION
$18.31 /Hr.
4.028/Hr.
4.50 /Hr.
$26.838
(1) One hour per week will be billed for management and
supervision at the rate of $25.585/Hr.
(2 ) It is understood between LHMWC and Tustin that under
normal conditions 1 hour per day will be required
for system monitoring and operation. It is further
understood that during peak seasonal demand periods
additional monitoring may be required.
(3) LHMWC may, at its option, employ part-time employees
for weekend and holiday operations.
(4) Meter reading shall be performed by Tustin at the
option of LHMWC, at the above hourly rates.
(5) Tustin will provide emergency repair services to
LHMWC's water system at the following rates:
(i) WEEKDAYS
All emergency repairs shall be billed at the
hourly rate for the Tustin employee(s)
providing service to LHMWC, plus 33% for
benefits and overhead, based upon the salary
schedule attached hereto as Exhibit "A".
N
Equipment and material used shall be billed at
the following rates:
Service Truck and Tools $12.50/Hr.
Backhoe 525.00/Hr.
Dump Truck $25.00/Hr.
Materials At Cost
(ii) AFTER HOURS, WEEKENDS AND HOLIDAYS
The rate charged shall be calculated at 1.5
times the hourly pay rate of the Tustin
employee(s) providing the services. Benefits
and overhead shall be included at 33% of the
straight hourly rate.
2. It is understood that LHMWC shall fully indemnify,
defend, and hold Tustin harmless from any liability imposed or
injury or damage occurring in connection with the provision of
services to LHMWC under this Agreement.
3. Employees provided to perform this Agreement will be
subject to direct supervision and control of Tustin.
4. This document, including the attached Exhibit "A",
contains the entire agreement between the parties relating to the
rights granted herein and the obligations herein assumed. Any oral
representations or modifications concerning this document shall be
of no force and effect except a subsequent modification in writing,
signed by the party to be charged.
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5. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
6. The term of this Agreement shall be from May 21, 1990,
through September 17, 1990, unless a longer period is expressly
agreed upon in writing by the parties.
IN WITNESS WHEREOF, the parties have executed this Agreement
the day and year first above written.
APPRO TO F RM:
f:
JAMJK 4r. ROURRE
City Attorney
(s\894.rr)
CITY OF TUSTIN
By
Title
LEMON HEIGHTS MUTUAL WATER COMPANY
By
Title Board of Direc e 'den
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