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Resolution No. 013 071

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Resolution No. 013 071 Los Angeles, California, October 4,2012 MINUTES OF SPECIAL MEETING OF THE BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES HELD IN ROOM 1555-H OCTOBER 4, 2012 2:09 P.M. Meeting called to order by President Thomas S. Sayles and roll called: Present - Commissioners: President Sayles Richard Moss Christina E. Noonan Jonathan Parfrey Absent- Eric Holoman A quorum present. IN ATTENDANCE were the following: Ronald O. Nichols, General Manager Aram H. Benyamin, Senior Assistant General Manager - Power System, Power System Shanise Black, Deputy City Attorney II, City Attorney's Office Richard M. Brown, General Counsel, Water and Power, City Attorney's Office Randolph R. Krager, Electrical Engineer, Power System Philip Leiber, ChiefFinancial Officer, Financial Services Organization James B. McDaniel, Senior Assistant General Manager - Water System, Water System Shannon C. Pascual, Director ofHuman Resources, General Manager's Office Susana Reyes, Manager of Workers' Compensation and Employee Health and Benefits Mark J. Sedlacek, Director ofEnvironmental Affairs, Intergovernmental Affairs Michael S. Webster, Power Engineering Manager, Power System Gary E. Wong, Assistant General Manager - Systems Support Division ITEM NO.1 - Opening remarks were made by the Commission President on agenda and other items relating to Department operations. ITEM NO. 11- Resolution recommending Board Recognition ofthe Workers' Compensation Group, Human Resources Division for its outstanding efforts before and during the State audit. Submitted by Director ofHuman Resources. RESOLUTION NO. 013 071 WHEREAS, Senate Bill 899, enacted into law in 2004, brought material changes to the audit program ofthe State ofCalifornia's Division ofWorkers' Compensation (DWC). The perfonnance ofthe Los Angeles Department of Water and Power (LADWP) Workers Compensation (WC) as a self-insured administered program is rated every five years for action in specific areas of benefit provision. The State ofCalifornia PAR passing score for 2012 is at or below 1.74515. Audit subjects with a PAR perfonnance rating of 1.75629 or lower will be required to pay any unpaid compensation, but no penalties will be assessed; and SPECIAL MEETING OF COMMISSIONERS (Continued) OCTOBER 4,2012,2:09 P.M. Page 2 WHEREAS, the LADWP received a Notice ofAudit Commencement by the State DWC on May 21,2012, under Audit Number LAO-16-12-RX-6; and the official audit commenced June 11,2012; and WHEREAS, the audit process has three stages: the profile audit review (PAR), full compliance audit (stage 1), and full compliance audit ofall issues (stage 2) and LADWP reviewed all alleged violations and assessments and successfully rebutted a vast majority of assessments during the PAR, thus avoiding the subsequent full compliance audit stages; and WHEREAS, the PAR rating is a composite score reflecting claims performance. Offoremost importance is the payment ofall indemnity owed to the injured worker for an industrial injury. The timeliness ofall initial and subsequent indemnity payments; the timeliness for provision of notice for a qualified or agreed medical evaluation and the notice ofsalary continuation are also measurable factors for performance. Ifthe audit PAR performance rating meets or exceeds the PAR performance standard, the audit is terminated and no penalties are assessed for claims violations; and WHEREAS, the LADWP WC staff, with the assistance ofthe City Attorney, City Controller, Payroll and Timekeeping Section ofFinancial Services Office, and the Office ofDisability, Retirement Office, took the opportunity to clarifY any and all issues, provide supporting documentation, and refute assessments that assisted in the Department passing the PAR stage ofthe audit; and WHEREAS, on August 14,2012, the LADWP passed the PAR based on a score of 1.73608 and achieved an outstanding Utilization Review (DR) Performance Rating of98.6 percent conducted July 25- 26, 2012; and WHEREAS, by exceeding the State Audit Performance Standard at the PAR level and achieving a passing DR score, the LADWP was able to: a) Remove $31,995 in penalty assessments; b) Save $184,800 in administrative costs based on 1,848 claims closed during a case closure project conducted from May 201 0 to December 201 O. c) Avoid $301,300 in full compliance penalties and assessments due to audit preparation project. d) Avoid $156,600 in potential UR penalty assessments. e) Save a minimum of $400,000 in potential general business practice fines pursuant to Labor Code 5814.6, Title8, CA Code ofRegulations, Sections 10112.1 through 10112.3, which became effective May 26, 2007. BE IT THEREFORE RESOLVED that the WC Group ofthe Human Resources Division be recognized for its outstanding efforts before and during the State audit; and that WC staffbe individually recognized for efforts towards this achievement; and that the City Attorney, City Controller, Payroll and Timekeeping Groups, and the Office ofDisability, Retirement be recognized as well. Approval moved by Commissioner Parfrey. Seconded by Commissioner Moss and carried by the following vote: Ayes, Commissioners Moss, Noonan, Parfrey, President Sayles; Noes, None. SPECIAL MEETING OF COMMISSIONERS (Continued) OCTOBER 4,2012,2:09 P.M. Page 3 ITEM NO.2 - A reportlbriefing was given by the General Manager. ITEM NO.4 - The Secretary presented the opportunity for the public to address the Board on items ofinterest to the public that are within the subject matter jurisdiction ofthe Board. ITEM NO.3 - Comments and/or requests from Commissioners were made during the Board meetiIlg relating to Department operations. Commissioner Moss Provide a report on the recent Construction Management audit that was conducted by the Controller's Office. Commissioner Noonan - Amend resolution for payment ofPremiums for the Corporate Property Insurance (Board Item No. 16). Ensure the Department does not receive a loss when the Department is not found at fault. Written recommendations, approved by the General Manager, transmitting the following resolutions, approved as to form and legality by the City Attorney: ITEM NO.5 - Approval ofthe minutes ofthe June 19,2012, regular meeting ofthe Board of Water and Power Commissioners. Approval moved by Commissioner Moss. Seconded by Commissioner Noonan and carried by the following vote: Ayes, Commissioners Moss, Noonan, Parfrey, President Sayles; Noes, None. ITEM NO.9 - A written recommendation was received from the Senior Assistant General Manager Power System, approved by the General Manager, recommending the adoption ofa resolution, approved as to form and legality by the City Attorney, authorizing execution of Amendment No.3 to Agreement No.10323 for Ratification ofGlendale Los Angeles Department ofWater and Power Air Way Interconnection. Commissioner Moss moved to defer this item. Seconded by Commissioner Parfrey and carried by the following vote: Ayes, Commissioners Moss, Noonan, Parfrey, President Sayles; Noes, None. Commissioner Parfrey moved adoption ofthe following four resolutions, approved as to form and legality by the City Attorney: SPECIAL MEETING OF COMMISSIONERS (Continued) OCTOBER 4,2012,2:09 P.M. Page 4 ITEM NO.6 - Authorizes award ofContract No. 391 (Amendment No.1) for Furnishing and Delivering Net Time ofUse Demand Watthour Meters. The amendment will increase the contract amount by $750,000 and extend the term one year. Submitted by Senior Assistant General Manager - Power System and Assistant General Manager - Systems Support Division. RESOLUTION NO. 19493 WHEREAS, Itron, Inc. was awarded Contract No. 391 for furnishing and delivering net time ofuse demand watthour meters; and WHEREAS, on October 4,2011, the contract was awarded for a term ofone year, for an amount not to exceed $2,940,300.00; and WHEREAS, the Los Angeles Department ofWater and Power's (LADWP) Power System recommends Amendment No.1 to Contract No. 391 to extend the contract term by 12 months from October 13, 2012 to October 13,2013 and increase the contract limit amount by $750,000.00 from $2,940,300.00 to $3,690,300.00. NOW, TIIEREFORE, BE IT RESOLVED that Amendment No. 1 to Contract No. 391 is approved as to form and legality by the City Attorney and on file with the Secretary ofthe Board. BE IT FURTHER RESOLVED that the President or Vice President ofthe Board, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, Assistant Secretary, or the Acting Secretary ofthe Board are hereby authorized and directed to execute said Amendment for and on behalfofLADWP. BE IT FURTHER RESOLVED that the ChiefAccounting Employee is hereby authorized and directed to draw demands upon the Power Revenue Fund in accordance with the terms ofthis amendment awarded pursuant to Contract No. 391 and this Resolution. ITEM NO.7 - Authorizes award ofContract No. 456 for Furnishing and Delivering Flame Resistant Clothing. Award to Riverside Manufacturing Company, for an amount not to exceed $3,593,979.20 and term ending March 5, 2013 with two one-year renewal options. Submitted by Senior Assistant General Manager - Power System and Assistant General Manager Systems Support Division. RESOLUTION NO. 19494 WHEREAS, the Los Angeles Department ofWater and Power (LADWP) desires to contract for Flame Resistant (FR) Clothing; and WHEREAS, Riverside Manufacturing Company (Riverside) was awarded Contract No. 4600006330 with the City ofTacoma, Tacoma Public Utilities, dba Tacoma Power for FR Clothing; and WHEREAS, Section 371 (e)(8) ofthe City Charter allows
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