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Los Angeles, California, June 3, 2014 MINUTES of REGULAR MEETING

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Los Angeles, California, June 3, 2014 MINUTES of REGULAR MEETING '--- Los Angeles, California, June 3, 2014 MINUTES OF REGULAR MEETING OF THE BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES HELD IN ROOM 1555-H JUNE 3, 2014 11:20 A.M. Meeting called to order by President Mel Levine and roll called: Present- Commissioners: President Levine Michael F. Fleming William W. Funderburk, Jr. Christina E. Noonan Absent- Jill Banks Barad ', A quorum present. IN ATTENDANCE were the following: Marcie L. Edwards, General Manager Joseph Brajevich, Assistant General Counsel, Water and Power, City Attorney's Office Richard M. Brown, General Counsel, Water and Power, City Attorney's Office John R. Dennis, Director of Power Integrated Support Services, Power System Randy D. Howard, Senior Assistant General Manager- Power System Randolph Krager, Electrical Engineer, Power System Philip Leiber, Chief Financial Officer, Financial Services Organization James B. McDaniel, Senior Assistant General Manager- Water System Thomas G. Patzlaff, Fleet Services Manager, Power System Michael S. Sullivan, Fleet Services Manager, Power System MichaelS. Webster, Power Engineering Manager, Power System David H. Wiggs, Chief Administrative Officer Gwen W. Williams, Director of Supply Chain Services '"-. Also, in attendance: Camden Collins, Ratepayer Advocate Guy Lipa, Mayor's Office Dr. Frederick Pickel, Executive Director/Ratepayer Advocate, Office of Public Accountability ITEM NO. 1 - Opening remarks by the Commission President on agenda and other items relating to Department operations. ITEM NO. 2-No Report/Briefing was given by Marcie L. Edward, General Manager. REGULAR MEETING OF COMMISSIONERS (Continued) JUNE 3, 2014, 11:20 A.M. Page 2 ITEM NO. 3 -Comments from Commissioners on agendized items. Requests from Commissioners relating to Departmental operations. Commissioners Funderburk, Jr. and Nooonan- 1) Ensure that local non-profits and other entities benefit from these solar projects. We need to make sure that money will be invested back into the immediate community. 2) In future Board Letters on solar contracts, please provide more information on the vendor( s) and the selection process (Board Item 19- Bundled Solar). ITEM NO.4- The secretary presented an opportunity for the public to address the Board on items of interest to the public that are within the subject matter jurisdiction of the Board. (Speakers may be limited in speaking time dependent upon the press of business and number of persons wishing to address the Board.) 2- Speakers ITEM NO.5- Comments were made from the Ratepayer Advocate on agendized Items Nos. 13, 16, 18 and 19later in the meeting. Written recommendations, approved by the General Manager, transmitting the following resolutions, approved as to form and legality by the City Attorney: ITEM NO.6- Recommendation for approval of the minutes ofthe May 20, 2014, Special meeting of the Board of Water and Power Commissioners. Approval moved by Commissioner Fleming. Seconded by Commissioner Levine and carried by the following vote: Ayes, Commissioner Fleming, Noonan, President Levine, Noes, None. Commissioner Funderburk, Jr. abstained, was not at May 20, 2014 Board Meeting. Commissioner Noonan moved adoption of the following four resolutions, approved as to form and legality by the City Attorney: ITEM NO. 7- Bid No. 7536 for Asphalt Concrete Road for the Beacon Solar Project to provide main access to the new Beacon Solar Project. Award to C. A. Rasmussen, Inc. for a total amount not to exceed $984,400 for a one-time purchase. Submitted by Senior Assistant General Manager- Power System. RESOLUTION NO. 19657 WHEREAS, through a competitive bid process, the Los Angeles Department of Water and Power (LADWP) issued a solicitation to procure services to furnish and deliver Asphalt Concrete Road for the Beacon Solar Project under Bid No. 7536; and WHEREAS, C.A. Rasmussen, Inc., is the lowest bidder under Bid No. 7536. WHEREAS, LADWP is requesting a 15 percent contingency for unforeseen conditions that may be encountered during construction and fluctuations in oil prices which may result in an "\ increase cost for asphalt and fuel. _) REGULAR MEETING OF COMMISSIONERS (Continued) JUNE 3, 2014, 11:20 A.M. Page 3 NOW, THEREFORE, BE IT RESOLVED that C.A. Rasmussen, Inc. is awarded the contract for a total amount not to exceed $984,400.00, including a 15 percent contingency of $128,400.00, for a one-time purchase, under Contract No. 7536. BE IT FURTHER RESOLVED that pursuant to City Charter Section 1022, the Board finds that it is more feasible to have the work performed by an independent contractor. BE IT FURTHER RESOLVED that Contract No. 7536, approved as to form and legality by the City Attorney, is hereby approved. BE IT FURTHER RESOLVED that the Chief Accounting Employee of the LADWP, upon proper certification, is authorized and directed to draw demands on the Power Revenue Fund, in accordance with the terms of this contract awarded pursuant to Bid No. 7536 and this resolution. BE IT FURTHER RESOLVED that the President or Vice President, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, Assistant Secretary, or the Acting Secretary of the Board are hereby authorized and directed to execute said agreement for and on behalf of LADWP. ITEM NO. 8- Authorizes execution of Agreement No. 4 7045-1 (Amendment No. 1) to continue to provide ongoing maintenance, support, update services, and training for the Reliability Standards Compliance System with AssurX. The Amendment will add three optional one-year periods and increase the agreement total by $349,995. Submitted by Senior Assistant General Manager- Power System. RESOLUTION NO. 014 221 WHEREAS, AssurX, Inc. (AssurX) was awarded Agreement No. 47045-1 under a competitive bid, for providing a Reliability Standards Compliance System and implementation services; and WHEREAS, Agreement No. 47045-1 was awarded for a term of three years for an amount not to exceed $900,000; and WHEREAS, continued compliance with the Federal Energy Regulatory Commission approved Reliability Standards will avoid potential penalties ofup to $1,000,000 per day, per violation, and other possible sanctions; and WHEREAS, Los Angeles Department of Water and Power (LADWP) recommends Amendment No.1 to Agreement No. 47045-1 with AssurX, Inc. to add three optional one-year periods and increase the agreement total by $349,995 from $900,000 to $1,249,995. The expenditure of each optional year is limited to $116,665 in accordance with Charter Section 1 0.5(b )(2). NOW, THEREFORE, BE IT RESOLVED that Amendment No.1 to Agreement No. 4 7032-1, approved as to form and legality by the City Attorney is hereby approved. BE IT FURTHER RESOLVED that the Board finds pursuant to Chart Section 3 71 (e) 10, that contracting with another entity would be impractical as AssurX is the only company able to support its software. BE IT FURTHER RESOLVED that the Chief Accounting Employee of the LADWP, upon proper certification, is authorized and directed to draw demands on the Power Revenue Fund(s), in accordance with the terms of this Amendment No. 1 to Agreement No. 47045-1 and this resolution. BE IT FURTHER RESOLVED that the President or Vice President, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, Assistant Secretary, or the Acting Secretary of the Board are hereby authorized and directed to execute said amendment for and on behalf ofLADWP. REGULAR MEETING OF COMMISSIONERS (Continued) JUNE 3, 2014, 11:20 A.M. Page 4 ITEM NO. 10- Authorizes Agreement No. 47071-2 (Amendment No. 1) Increased Contingency for Phase 1 ofthe Headworks Reservoir Project with Webcor/Obayashi/Lyles, a Joint Venture. The Amendment will increase the agreement by $6 million. Submitted by Senior Assistant General Manager- Water System. RESOLUTION NO. 014 222 WHEREAS, WebcoriObayashiiLyles, a Joint Venture (WOL) was awarded Agreement No.4 7071-2 (Agreement) by the Los Angeles Department of Water and Power (LADWP) Board of Commissioners (Board) on December 6, 2011, by Board Resolution 012 123, and WOL was authorized on April3, 2012, by Board Resolution 012 206 to proceed with the construction of Phase 1 of the Headworks Reservoir Project to be completed by June 2015 for a not-to-exceed amount of$139.2 million; and WHEREAS, due to the passage of Senate Bill293, codified as Public Contract Code Section 7201, contract payment retention funds withheld by public entities from original contractors and original contractors from subcontractors on public contracts entered into on or after January 1, 2012, was reduced from ten percent to five percent; and WHEREAS, due to design changes, added scope, and additional LADWP contingency, the not-to-exceed amount of$139.2 million will be increased by $6 million to $145.2 million; and WHEREAS, LADWP's Water System recommends Amendment No. 1 to Agreement with WOL to reduce the contract payment retention amount from ten percent to five percent of the entire contract work. NOW, THEREFORE, BE IT RESOLVED that Amendment No.1 to Agreement approved as to form and legality by the City Attorney, and filed with the Secretary of the Board, is hereby approved. BE IT FURTHER RESOLVED that the not-to-exceed amount of$139.2 million for the construction ofPhase 1 of the Headworks Reservoir Project will be increased by $6 million to $145.2 million. BE IT FURTHER RESOLVED that the Chief Accounting Employee ofLADWP is hereby authorized and directed to draw demands upon the Water Revenue Fund in accordance with the terms of this Amendment No. 1 to Agreement and this Resolution. BE IT FURTHER RESOLVED that the President or Vice President, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, Assistant Secretary, or the Acting Secretary of the Board are hereby authorized and directed to execute ,, said amendment for and on behalf ofLADWP.
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