Los Angeles, California, June 12, 2018

Transcription

1 Los Angeles, California, June 12, 2018 MINUTES OF REGULAR MEETING OF THE BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES *AS AMENDED HELD IN ROOM 1555 H JUNE 12, :23 A.M. Meeting called to order by President Mel Levine and roll called: Present Commissioners: President Mel Levine William W. Funderburk, Jr. Jill Banks Barad Christina Noonan Aura Vasquez A quorum present. IN ATTENDANCE were the following: David H. Wright, General Manager Martin L. Adams, Chief Operating Officer Arrash Agahi, Civil Engineering Associate Water System Michael Bacich, Assistant General Manager Marketing and Economic Development Joseph Brajevich, General Counsel, Water and Power, City Attorney s Office Cathleen Chavez Morris, Environmental Supervisor Water System Richard F. Harasick, Senior Assistant General Manager Water System Eric C. Hartman, Power Engineering Manager Power System David Jacot, Director of Efficiency Solutions Office of Sustainability Reiko A. Kerr, Senior Assistant General Manager Power System Engineering, Planning and Technical Services Eric Montag, Power Engineering Manager Power System David R. Pettijohn, Director of Water Resources Joseph M. Ramallo, Assistant General Manager Communications, Media and Community Affairs Susan Rowghani, Director of Water Engineering & Technical Services Water System Ann M. Santilli, Interim Chief Financial Officer Financial Services Organization Donna Stevener, Chief Administrative Officer Nancy H. Sutley, Chief Sustainability Officer Louis C. Ting, Director of Power Planning and Development Division Power System Richard Tom, Assistant General Counsel, Water and Power, City Attorney s Office Also, in attendance: Rebecca Andreassen, Camden Collins, Liz Crosson, Scott Haase, Benjamin J. Hwang, Donald J. Morrow, Dr. Frederick Pickel, Robert Roth, Office of the Mayor Ratepayer Advocate, Office of Public Accountability Office of the Mayor Partnership Development Manager at National Renewable Energy Laboratory (NREL) Project and Account Manager at WorleyParsons, LTD Managing Director at Navigant Executive Director/Ratepayer Advocate, Office of Public Accountability Senior Administrative Analyst, City Administrative Office

2 JUNE 12, 2018, 10:23 A.M. Page 2 ITEM NO. 1 Opening remarks by the Commission President on agenda and other items relating to Department operations, and Channel 35 broadcast announcement. ITEM NO. 2 General Public Comment: 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. In accordance with the Brown Act, no action or discussion shall be undertaken by the Board on any item not appearing on the posted agenda.) 2 SPEAKERS ITEM NO. 3 Report/Briefing by the General Manager, including Reports from Water, Power and Administrative System Management concerning current matters relating to Department Operations. ITEM NO. 4 Comments from Commissioners on agendized items. Requests from Commissioners relating to Departmental operations. *Commissioners Funderburk, Jr., and Barad Provide a report on the data LADWP is collecting on EVs to determine the current collection data gaps. Provide more information on how LADWP collects and maintains EV State credits and the percentage of EV chargers metered in the City. Additionally, provide a report on the electric vehicle registrations in the City. Also, as previously requested, provide report where the current EV stations in the City are located and provide an overlay of where we plan on putting EV charging infrastructure in the future (Request from Item No. 6A Management Report regarding Equity Metrics). Commissioner Barad Outreach by LADWP through Power System and Joe Ramallo s group to make every effort to figure out a way to communicate the technical nature of this project so an everyday person understands (Request from Item No. 6B Management Report regarding Once Through Cooling Update). Commissioners Funderburk, Jr., and Vasquez Equity metrics also need to be incorporated into LADWP s OTC study, particularly, on the benefits of reducing pollution in low income areas. For the next update on this topic in August, please provide how this is being done. Also, need to make sure that most recent equity metrics resolution is on LADWP s website (Request from Item No. 6B Management Report regarding Once Through Cooling Update). Commissioner Barad For the 100% Renewable Study, look into how Metro s transportation planning strategies particularly, on the Sepulveda pass options impacts the LADWP grid. Make sure that Neighborhood Councils are notified of this study and the process is opened up for more participation by community members (Request from Item No. 6C Management Report regarding 100% Renewable Energy Study). *Commissioners Funderburk, Jr., and Barad Please make sure that the 100% Renewable Committee reflects the diversity of the City of Los Angeles, specifically, the number of women on the Committee, and that elected Neighborhood Council members are being represented, as well as residents. Also, LADWP needs to make sure that contractors are aware of LADWP s equity metrics priorities (Request from Item No. 6C Management Report regarding 100% Renewable Energy Study).

3 JUNE 12, 2018, 10:23 A.M. Page 3 Commissioner Funderburk, Jr. Please speak to renewable expert Dr. Mendez who can discuss about the economic benefits and social impacts of 100% renewables. Please also consult with RAND experts on game theory in the field of renewable energy distribution. For modeling studies, take into account different classes of ratepayers, particularly, single and multi family units. Also, LADWP needs to go back to the Mayor s office and reformulate the Advisory Committee to make sure it reflects the diversity of Los Angeles (Request from Item No. 6C Management Report regarding 100% Renewable Energy Study). Commissioner Levine If NREL funding is curtailed by the federal government, please make sure to notify LADWP (Request from Item No. 6C Management Report regarding 100% Renewable Energy Study). Commissioner Noonan Make sure the RPA provides input and differentiates itself from the Department on providing review. Please make sure to incorporate all of the Board s comments to improve the 100% renewable study (Request from Item No. 6C Management Report regarding 100% Renewable Energy Study). Commissioner Vasquez Please make sure the 100% Renewable Advisory committee is more diverse and reflects the makeup of the City of Los Angeles. Also, include other City Departments in the process, particularly, Department of Transportation and Housing (Request from Item No. 6C Management Report regarding 100% Renewable Energy Study). Commissioner Vasquez Provide more information on equity metrics on topics of energy efficiency, particularly, trends of enrollment when it comes to the elderly and the homeless seeking housing. Also, provide a report on how LADWP is outreaching to communities and how LADWP can better provide savings/minimize the bills to low income customers (Request from Item No. 8B1 Filed Items Efficiency Solutions Update). *Commissioners Funderburk, Jr., and Noonan Request a tracking process re: Commissioners Requests and would like a report back from the General Manager. Also, add Commissioners Requests to the agendas (Request from Item No. 10 Minutes from May 22, 2018, Regular Meeting of Board of Water and Power Commissioners). ITEM NO. 5 Comments from Ratepayer Advocate on agendized Item Nos. 6B, 6C, 18 and 20. ITEM NO. 6 Reports by Management concerning matters relating to Department operations, as follows: A. Presentation regarding Equity Metrics Presented by David H. Wright, Nancy H. Sutley and David Jacot. B. Presentation regarding Once Through Cooling Update Presented by Reiko A. Kerr, Donald J. Morrow of Navigant, Benjamin J. Hwang of WorleyParsons, Nancy H. Sutley and Eric Montag. Dr. Pickel commented on this presentation. 1 SPEAKER C. Presentation regarding 100% Renewable Energy Study Presented by Reiko A. Kerr, Eric Montag, Scott Haase of NREL and Joseph M. Ramallo. Dr. Pickel commented on this presentation.

4 JUNE 12, 2018, 10:23 A.M. Page 4 The following items were presented by the Secretary and ordered filed. ITEM NO. 8A Monthly reports of activities for the following: 1. Financial Services Organization Monthly Activities Report March Power System Monthly Report March Power System Monthly Report April Renewable Portfolio Standard Projects Update Report April 2018 ITEM NO. 8B Reports for informational purposes: 1. Efficiency Solutions Update 2. Use of Proceeds from Sale of Low Carbon Fuel Standard Credits ITEM NO. 9 Discussion with Neighborhood Council representatives on any Neighborhood Council Resolution or Community Impact Statement filed with the City Clerk which relate to any agenda item listed or being considered on this agenda for the Water and Power Board. No Community impact statements or formal positions were filed by any Neighborhood Councils on the items on today s agenda. Commissioner Barad left the Board Room at 12:54 p.m. ITEM NO. 10 Recommendation for approval of the minutes of the May 22, 2018, Regular Meeting of the Board of Water and Power Commissioners. Approval moved by Commissioner Funderburk, Jr. Seconded by Commissioner Levine and carried by the following vote: Ayes, Commissioners Funderburk, Jr., Noonan, Vasquez and President Levine; Noes, None. ITEM NO. 17 Contract No. 917A for Rental of Backhoes with Operators. Award to P.B. Zimmerman for a term of three years and an amount not to exceed $9,569,469. Submitted by Chief Operating Officer. Determine item is exempt pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15060(c)(3). Deferred. Deferral moved by Commissioner Levine. Seconded by Commissioner Funderburk, Jr., and carried by the following vote: Ayes, Commissioners Funderburk, Jr., Noonan, Vasquez and President Levine; Noes, None.

5 JUNE 12, 2018, 10:23 A.M. Page 5 Written recommendations, approved by the General Manager, transmitting the following resolutions, approved as to form and legality by the City Attorney: Commissioner Funderburk, Jr., moved adoption of the following seventeen resolutions, approved as to form and legality by the City Attorney: ITEM NO. 11 Authorizes execution of Optical Fiber Lease Agreement No. FO /2018 and Short Form IRU 01 Lease Agreement No. FO /2018 with Children s Hospital Los Angeles for Lease of LADWP Optical Fibers. Submitted by Chief Administrative Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, Optical Fiber Lease Agreement No. FO /2018 (Master Agreement) and Short Form IRU 01 Lease Agreement No. FO /2018 (IRU 01), between the Los Angeles Department of Water and Power (LADWP) and Children s Hospital Los Angeles (CHLA), grants CHLA the Indefeasible Right of Use of certain components of LADWP s fiber optic network which will generate revenue that will be deposited into LADWP s Power Revenue Fund; and WHEREAS, the Board of Water and Power Commissioners (Board) finds that the optical fibers to be leased are not presently needed for LADWP purposes and the execution of these agreements will not interfere with LADWP operations; and WHEREAS, the Master Agreement and IRU 01 replace Optical Fiber Lease Agreement No. FO /2013 and Short Form IRU 01 Lease Agreement No. FO /2013, which will expire on June 4, The Master Agreement and IRU 01 will commence promptly to ensure continual operations; and WHEREAS, the term of the Master Agreement and IRU 01 is five years. NOW, THEREFORE, BE IT RESOLVED that the proposed Master Agreement and IRU 01, approved as to form and legality by the City Attorney and filed with the Secretary of the Board, be and the same are hereby approved and ratified. 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 Master Agreement and IRU 01 for and on behalf of LADWP. ITEM NO. 12 Authorizes Agreement No to Provide Prescription Safety Eyewear Services. Award to Vision Service Plan for a term of three years and an amount not to exceed $430,000. Submitted by Chief Administrative Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, the Los Angeles Department of Water and Power (LADWP) proposes to enter into Agreement No (Agreement) with Vision Service Plan (VSP) for prescription safety eyewear services for a term of three years; and WHEREAS, LADWP evaluated, contacted references, and found VSP as the most qualified to provide prescription safety eyewear services; and

6 JUNE 12, 2018, 10:23 A.M. Page 6 WHEREAS, VSP has reviewed the services to be provided and incorporated in this Agreement, and represents that it has the qualities, expertise, skills and abilities to perform such work. NOW, THEREFORE, BE IT RESOLVED that LADWP proposes to enter into the Agreement with VSP in an amount not to exceed $430,000. BE IT FURTHER RESOLVED that pursuant to the City Charter Section 1022, the Board of Water and Power Commissioners (Board) finds that it is more feasible to have the work performed by an independent contractor. BE IT FURTHER RESOLVED that the 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 Chief Accounting Employee of LADWP, upon proper certification, is authorized and directed to draw demands on the Water and Power Revenue Funds, in accordance with the terms of the 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 Agreement for and on behalf of LADWP. ITEM NO. 13 Authorizes Amendment No. 1 to Agreement No for Third Party Administration Services for LADWP s Flexible Benefits Program with eflexgroup A Division of TASC. The Amendment will extend the contract by six months. All other terms and conditions of the Agreement will remain the same. Submitted by Chief Administrative Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, the Board of Water and Power Commissioners (Board) awarded Agreement No (Agreement) to eflexgroup A Division of TASC (TASC) for providing third party administration services for the Los Angeles Department of Water and Power's (LADWP) Flexible Benefits Program (Flex Plan); and WHEREAS, the term of the Agreement is three years from June 29, 2015 through June 28, 2018, with a fixed bi weekly administrative fee of $1.42 that is paid to TASC by LADWP employees participating in the Flex Plan. NOW, THEREFORE, BE IT RESOLVED that LADWP proposes to extend the Agreement with TASC to December 31, 2018, for the same fixed bi weekly administrative fee of $1.42. BE IT FURTHER RESOLVED that pursuant to the 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 Amendment No. 1 (Amendment) to the 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 Chief Accounting Employee of LADWP, upon proper certification, is authorized and directed to draw demands on the Water Revenue Fund, in accordance with the terms of the Amendment to the 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 of LADWP.

7 JUNE 12, 2018, 10:23 A.M. Page 7 ITEM NO. 14 Authorizes Agreement No to Provide Mobile Onsite Drug and Alcohol Collection Services. Award to Integra Test for a term of three years and an amount not to exceed $150,000. Submitted by Chief Administrative Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, the Los Angeles Department of Water and Power (LADWP) proposes to enter into Agreement No (Agreement) with Integra Test for mobile onsite drug and alcohol collection services for a term of three years; and WHEREAS, LADWP evaluated, contacted references, and found Integra Test as the most qualified to provide mobile onsite drug and alcohol collection services; and WHEREAS, Integra Test has reviewed the services to be provided and incorporated in the Agreement, and represents that it has the qualities, expertise, skills and abilities to perform such work. NOW, THEREFORE, BE IT RESOLVED that LADWP proposes to enter into the Agreement with Integra Test for an amount not to exceed $150,000. BE IT FURTHER RESOLVED that pursuant to City Charter Section 1022, the Board of Water and Power Commissioners (Board) finds that it is more feasible to have the work performed by an independent contractor. BE IT FURTHER RESOLVED that the 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 Chief Accounting Employee of LADWP, upon proper certification, is authorized and directed to draw demands on the Water Revenue Fund, in accordance with the terms of the 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 Agreement for and on behalf of LADWP. ITEM NO. 15 Authorizes Amendment No. 1 to Agreement No B 6 for Customer Information System Support and Upgrade Services with Oracle America, Inc. The Amendment will increase the original Agreement amount by $7,000,000. All other items and conditions remain the same. Submitted by Chief Administrative Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, Oracle America, Inc. (Oracle) was awarded Agreement No B 6 (Contract) by the Los Angeles Department of Water and Power (LADWP) Board of Water and Power Commissioners (Board) on January 19, 2016, for furnishing and delivering Customer Information System support and upgrade services; and WHEREAS, the Contract was originally awarded for a three year term and $34,000,000; and

8 JUNE 12, 2018, 10:23 A.M. Page 8 WHEREAS, LADWP has determined that, due to the continuing need for highly specialized technical support on the Customer Care and Billing (CC&B), Mobile Workforce Management, and Meter Data Management systems to: (i) complete the final outstanding Settlement Agreement related items by the Court mandated deadlines; (ii) CC&B and related systems as needed cybersecurity assessment and remediation, and (iii) expertise necessary to aid LADWP with CIS upgrade and staff alignment, it is necessary to recommend Amendment No. 1 (Amendment) to the Contract with Oracle; and WHEREAS, the Amendment to the Contract will increase the Contract limit by $7,000,000 from $34,000,000 to a new amount not to exceed $41,000,000; contract term remains the same. NOW, THEREFORE, BE IT RESOLVED that the Amendment to the Contract, 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 Chief Accounting Employee of LADWP, upon proper certification, is authorized and directed to draw demands on the Water and Power Revenue Funds, in accordance with the terms of the Amendment to the Contract 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 of LADWP. ITEM NO. 16 Authorizes Amendment No. 3 to Contract No. 673 for Vanpool Vehicle Leasing and Services with Enterprise Holdings, Inc. The Amendment will increase the contract term by an additional ten months and increase the contract amount by $711,600. Submitted by Chief Administrative Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, Enterprise Holdings, Inc. was awarded Contract No. 673 by the Board of Water and Power Commissioners (Board) on April 7, 2015, for furnishing and delivering 12 Passenger Vanpool Vehicle Leasing and Services; and WHEREAS, Amendment No. 2, to include a line item for 8 passenger vans, extend the contract terms by 13 months, and increase the new contract limit was approved by the Board on May 16, 2017; and WHEREAS, the Los Angeles Department of Water and Power (LADWP) has determined that by extending the contract term an additional ten (10) months, it is necessary to increase the contract amount and recommends Amendment No. 3 to Contract No. 673 with Enterprise Holdings, Inc. and to increase the contract amount by $711,600 from $1,825,070 to $2,536,670. NOW, THEREFORE, BE IT RESOLVED that Amendment No. 3 (Amendment) to Contract No. 673, approved as to form and legality by the City Attorney and on file with the Secretary of the Board is hereby approved. BE IT FURTHER RESOLVED that the Chief Accounting Employee of LADWP, upon proper certification, is authorized and directed to draw demands on the Water Revenue Fund, in accordance with the terms of this Amendment and Resolution.

9 JUNE 12, 2018, 10:23 A.M. Page 9 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 of LADWP. *ITEM NO. 18 Approves Power System Reliability Program Expenditures for Fiscal Year Submitted by Interim Chief Financial Officer, Senior Assistant General Manager Power System Engineering, Planning, and Technical Services and Chief Operating Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). *Dr. Pickel commented on Item Nos. 18 and 20, as follows: July 1, 2018 Power Rate Authorizations This authorization begins year 4 of a 5 year period o 5 years is hard to forecast; o Sales are lower, and the forecast is a much better reflection of the situation in Los Angeles; o We wanted to call this out specifically, since it reflects a prudent management shift. The consequence is that DWP is showing OPA a system average rate level of year 5, one year early o We briefed the NC MOU group on the details of this in early May; o We sent the presentation materials to the Board before the budget was approved; o We are available if there are any Board members with questions. The rate impacts of the current rate structure may hit some customers by surprise, particularly, those consuming well above the average o It is always a good idea to refresh consumer education when rate design changes are phased in over such a long period of time. RESOLUTION NO WHEREAS, on April 9, 2008, the City Council of Los Angeles approved an amendment, Ordinance No , to the electric rate ordinance, which permits the Reliability Cost Adjustment (RCA) to recover operation, maintenance, and debt service expenses of the Power System Reliability Program (PSRP) through the application of the Reliability Cost Adjustment Factor (RCAF); and WHEREAS, Incremental Electric Rate Ordinance No (Incremental Ordinance) further provides for the recovery of qualifying expenditures through the application of the Incremental Reliability Cost Adjustment (IRCA) Factor; and WHEREAS, Electric Rate Ordinance No , as amended (Ordinance), and the Incremental Ordinance state that the RCAF and IRCA Factor shall be calculated once each year, and each such calculated factor shall take effect on July 1; and WHEREAS, the Ordinance indicates: An RCA shall be applied to bills under each service schedule in the Ordinance, and any contracts wherein it is specified; the Residential Service RCA shall be based on total energy use; the General Service RCA shall be based on demand, as determined for Facilities Charge; the Board of Water and Power Commissioners of the City of Los Angeles (Board) is required to approve the estimated operation, maintenance, and debt service expenses associated with the capital expenditures of the PSRP for inclusion in the RCAF calculation for the 12 month period commencing July 1, 2018; and WHEREAS, the Incremental Ordinance indicates: An IRCA shall be added to each bill unless excluded by contact clauses; the Residential Service IRCA shall be based on total energy use; the General Service IRCA shall be based on demand, as determined for Facilities Charge, and also on total energy use.

10 JUNE 12, 2018, 10:23 A.M. Page 10 NOW, THEREFORE, BE IT RESOLVED that the Board approves Schedules A, B, C, and D.1, which are on file with the Secretary of the Board, which describe and identify the qualified PSRP expenditures, which shall be included in the RCAF calculations for the 12 month period commencing July 1, 2018, through June 30, ITEM NO. 19 Approves Performance Based Rates Board Metrics, Targets, and Variances. Submitted by Interim Chief Financial Officer, Senior Assistant General Manager Water System, Senior Assistant General Manager Power System Engineering, Planning, and Technical Services, Senior Assistant General Manager Power System Construction, Maintenance, and Operations and Chief Operating Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, the Water and Power Rate Ordinances Nos and (Ordinances) require the Los Angeles Department of Water and Power (LADWP) to establish key performance metrics to evaluate the LADWP s progress toward its operational, financial, strategic, and policy goals or parameters (Board Metrics); and WHEREAS, on January 19, 2016, the Board of Water and Power Commissioners (Board) approved Resolution No , establishing the initial set of the LADWP s Board Metrics, the corresponding targets, and variance thresholds to show acceptable progress for each metric; and WHEREAS, the Ordinances also state that the Board may by resolution modify the Board Metrics, which modifications shall include, but not be limited to, the metrics selected, corresponding targets, and the estimated potential variation from the targets, provided that the Office of Public Accountability/Ratepayer Advocate (OPA) shall be notified by the LADWP of any proposed modifications at least 30 days prior so that the OPA can provide a written assessment on the proposals to the Board; and WHEREAS, the LADWP has identified modified targets and variance thresholds to show acceptable progress for existing Board Metrics for Fiscal Year ; and WHEREAS, one generation related Board Metric is proposed for deletion; and WHEREAS, the OPA was notified of the proposed modifications. NOW, THEREFORE, BE IT RESOLVED that the Board hereby approves the Board Metrics, targets, and variance thresholds as listed in Attachment I, a copy of which is now on file with the Secretary of the Board, for use in connection with the applicable rate ordinance or ordinances of the LADWP. *ITEM NO. 20 Approves Energy Cost Adjustment Expenditures for the 12 Month Period Commencing July 1, Submitted by Interim Chief Financial Officer, Senior Assistant General Manager Power System Engineering, Planning, and Technical Services and Chief Operating Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). *Dr. Pickel commented on this item; see Item No. 18 for comments.

11 JUNE 12, 2018, 10:23 A.M. Page 11 RESOLUTION NO WHEREAS, Electric Rate Ordinance No , as amended, provides for the recovery of qualifying expenditures for costs of fuel, purchased power, demand side management (DSM), and the renewable portfolio standard (RPS) through the application of the Energy Cost Adjustment Factor (ECAF); and WHEREAS, Incremental Electric Rate Ordinance No further provides for the recovery of qualifying expenditures through the application of the Variable Energy Adjustment Factor (VEAF), Capped Renewable Portfolio Standard Energy Adjustment Factor (CRPSEAF), and Variable Renewable Portfolio Standard Energy Adjustment Factor (VRPSEAF); and WHEREAS, Electric Rate Ordinance No , as amended, and Incremental Electric Rate Ordinance No state that the ECAF, VEAF, CRPSEAF, and VRPSEAF shall be calculated four times each year, and each such calculated factor shall take effect on January 1, April 1, July 1, and October 1, respectively; and WHEREAS, the ECAF formula in Electric Rate Ordinance No , as amended, calls for expenditures to be approved in advance by the Board for inclusion in components of the Energy Cost Adjustment (ECA). NOW, THEREFORE, BE IT RESOLVED that the Board approves Schedules B, C, and D, which are on file with the Secretary of the Board and which describe and identify estimated non renewable fuel expense totaling $194 million and non renewable purchased power expense totaling $664 million on Schedule B, estimated RPS expense totaling $789 million on Schedule C, and estimated DSM expense totaling $70 million on Schedule D for the 12 month period commencing July 1, 2018, through June 30, 2019, for inclusion in components of the ECA. ITEM NO. 21 Authorizes Rate Revision for Processing Utility Users Tax Exemption and Lifeline Rate Program Applications. Submitted by Interim Chief Financial Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(2). RESOLUTION NO WHEREAS, the City of Los Angeles Department of Water and Power (LADWP) has agreed to reimburse the Office of Finance of the City of Los Angeles for processing customer applications for the Utility Users Tax Exemption (UUTE) and Lifeline Rate Programs; and WHEREAS, the Board of Water and Power Commissioners adopted Resolution Number in February 2011, establishing a reimbursement rate of $6.58 per application; this fee has not changed since then; and WHEREAS, the Office of Finance has determined that the full cost recovery rate for LADWP now is $40.29 per application and seeks to be reimbursed at this new rate effective July 1, 2017; and WHEREAS, an annual cap of $370,000 will be budgeted and if the cap is exceeded the Office of Finance will request reimbursement the following fiscal year so that both city departments can budget for revenue and expenditures accordingly. NOW, THEREFORE, BE IT RESOLVED that the Chief Financial Officer is authorized to pay the Office of Finance $40.29 per UUTE and Lifeline Rate Program application processed, effective July 1, 2017, based upon an invoice presented by the Office of Finance to LADWP and approved by the Account Services Unit Manager.

12 JUNE 12, 2018, 10:23 A.M. Page 12 ITEM NO. 22 Authorizes execution of Agreement Nos , , and between the City of Los Angeles Department of Water and Power and Orrick, Herrington & Sutcliff LLP, Kutak Rock LLP, and Nixon Peabody LLP for Outside Counsel Services to Provide Bond and Disclosure Counsel Services. Submitted by General Counsel Water and Power. Determine item is exempt pursuant to CEQA Guidelines Section 15061(b)(3). RESOLUTION NO WHEREAS the Department of Water and Power of the City of Los Angeles (LADWP) anticipates bond transactions in the amount of $5 billion for the Power System and $5.6 billion for the Water System over the next five years, and market standards require that legal opinions be rendered by independent bond and disclosure counsel that are nationally recognized for expertise in municipal finance; and WHEREAS on March 23, 2018, the Office of the City Attorney on behalf of LADWP solicited requests for proposals from law firms to assist the City Attorney in providing bond and disclosure counsel services to LADWP; and WHEREAS as a result of such competitive process, Orrick, Herrington & Sutcliffe LLP was selected to serve as bond and disclosure counsel, and Kutak Rock LLP and Nixon Peabody LLP were selected to serve as disclosure counsel; and WHEREAS LADWP proposes to enter into Agreement Nos , , and (collectively, Agreements) with the aforementioned law firms each for a term of five years and initial appropriation amounts not to exceed $4,735,000, $775,000, $775,000 and $1,105,000, respectively. BE IT RESOLVED the Board finds that, pursuant to City Charter Section 1022, it is more feasible to have the work performed by independent contractors because of the size and complexity of, and the knowledge, skills, and professional expertise that is required in, the aforementioned work. BE IT FURTHER RESOLVED that pursuant to City Charter Section 275, Agreement Nos , , and , approved as to form and legality by the City Attorney, are hereby approved. BE IT FURTHER RESOLVED that the President or Vice President of the 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 of the Board be and they are hereby authorized and directed to execute said agreements for and on behalf of LADWP. BE IT FURTHER RESOLVED that the Chief Accounting Employee of LADWP, upon proper certification, is authorized and directed to draw demands on the Power Revenue Fund and the Water Revenue Fund, in payment of the obligations arising under said agreements. ITEM NO. 23 Authorizes Electric Vehicle Charger Rebate Program: Charge Up LA! Submitted by Senior Assistant General Manager Power System Engineering, Planning, and Technical Services and Chief Operating Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, the City of Los Angeles continues its long term commitment to reducing air pollution from mobile sources and reducing the nation s dependency on petroleum; and WHEREAS, electric vehicles (EVs) have the potential to significantly reduce petroleum consumption and emissions from the transportation sector which accounts for approximately 70 percent of the air pollution in the Los Angeles Basin; and

13 JUNE 12, 2018, 10:23 A.M. Page 13 WHEREAS, EVs have the potential to provide a new energy market and revenue stream for the Los Angeles Department of Water and Power (LADWP) through off peak charging, and LADWP desires to promote and encourage the use of this technology to leverage the delivery of electricity, an alternative transportation fuel, to create a unique and historical opportunity to store electricity through expanded EV adoption; and WHEREAS, EV charging will complement LADWP s expanding renewable energy resource mix; and adoption of this technology presents an opportunity to provide peak shaving, outage mitigation, and demand response for our customers; and WHEREAS, the installation of charging infrastructure is critical to the successful deployment and utilization of EVs and the overall commercialization of this technology; and WHEREAS, LADWP has implemented three Charge Up LA! charger rebate programs from May 1, 2011, to the present, and LADWP wants to continue facilitating the infrastructure installation process with a new and enhanced EV charger rebate program for residential and commercial customers. WHEREAS, LADWP voluntarily participates in the California Air Resources Board s (CARB) Low Carbon Fuel Standard (LCFS) Program and is a covered entity under CARB s Greenhouse Gas Cap and Trade Program; and WHEREAS, LADWP has sold LCFS credits and California Carbon Allowances under the programs and received monetary proceeds from the sale of the credits and allowances which CARB requires be used for specific purposes; and WHEREAS, LADWP will invest its proceeds to fund the Charge Up LA! rebate program to fulfill CARB requirements; and NOW, THEREFORE, BE IT RESOLVED that the EV charger rebate program Charge Up LA! is continued as an LADWP program and is effective from July 1, 2018, to June 30, 2021, or until funds are exhausted, whichever comes first. BE IT FURTHER RESOLVED that funding of up to $38,000,000 is approved to provide rebates for charger installations to qualified LADWP residential and commercial customers meeting the terms and conditions of the rebate program with the following breakdown by each sector not to be exceeded: Residential $4,000,000; Commercial $18,000,000; Medium and Heavy Duty Fleet $11,000,000; Direct Current Fast Charging $5,000,000. BE IT FURTHER RESOLVED that the General Manager is hereby authorized to prepare and implement various Electric Vehicle Charger Rebate Applications for Residential and Commercial customers which shall set forth terms, conditions, rebate amounts, and requirements that the General Manager may deem necessary for a successful program that includes: Residential Charging, Workplace Charging, Public Charging, Medium and Heavy Duty Fleet Charging, DC Fast Charging, and a Residential Smart Charging Pilot Program. BE IT FURTHER RESOLVED that the General Manager is hereby authorized to make modifications to the Terms and Conditions and rebate amounts of the rebate program during the course of the rebate term to address changes in market conditions and to provide clarifying interpretations. BE IT FURTHER RESOLVED that the Charge Up LA! customer rebates will be disbursed through a dedicated Trust Fund (TF) account allocated under the account name EV Chargers Rebate Program TF Revolving Account, as established by the LADWP Accounting and Financial Reporting Division. 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 payment of the obligations arising under this resolution.

14 JUNE 12, 2018, 10:23 A.M. Page 14 ITEM NO. 24 Authorizes Agreement Nos A and 47482B for Emission Source Testing Services. Award to Horizon Air Measurement Services, Inc., and Montrose Air Quality Services, LLC, for a term of three years and a cumulative total amount not to exceed $1,800,000. Submitted by Senior Assistant General Manager Power System Engineering, Planning, and Technical Services and Chief Operating Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(2). RESOLUTION NO WHEREAS, Los Angeles Department of Water and Power (LADWP) proposes to enter into Agreements No A with Horizon Air Measurement Services, Inc. and Agreement No B with Montrose Air Quality Services, LLC for emissions source testing and related technical services for a term of three years; and WHEREAS, LADWP has evaluated the proposals, contacted references, and found Horizon Air Measurement Services, Inc. and Montrose Air Quality Services, LLC the most qualified to provide as needed emissions source testing services, and WHEREAS, Horizon Air Measurement Services, Inc. and Montrose Air Quality Services, LLC have reviewed the services to be provided and incorporated in the Agreements, and represent that they have the qualities, expertise, skills and abilities to perform such work. NOW, THEREFORE, BE IT RESOLVED that LADWP proposes to enter Agreement No A with Horizon Air Measurement Services, Inc. and Agreement No B with Montrose Air Quality Services, LLC for a cumulative amount not to exceed $1,800,000 for both agreements. 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 Agreement Nos A and 47482B, approved as to form and legality by the City Attorney. 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 both Agreements 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 Agreements for and on behalf of LADWP. ITEM NO. 26 Authorizes Amendment No. 1 to Contract No for Services for Installing Department Furnished 275 kv XLPE Cables for the Scattergood Olympic Cable A Project with Parkia, Inc. The Amendment will increase the contract contingency amount by $500,000. Submitted by Senior Assistant General Manager Power System Engineering, Planning, and Technical Services and Chief Operating Officer. In compliance with CEQA Guidelines Sections (Environmental Impact Report (EIR) previously adopted). RESOLUTION NO WHEREAS, Parkia, Inc. was awarded Contract No by the Los Angeles Department of Water and Power (LADWP) Board of Commissioners on May 22, 2015, for Services for Installing Department Furnished 275 kv XLPE Cables for the Scattergood Olympic Cable A Project; and WHEREAS, the contract was awarded for a one time purchase, and for a total amount not to exceed $16,079,184 which includes a 20 percent contingency; and

15 JUNE 12, 2018, 10:23 A.M. Page 15 WHEREAS, LADWP has determined that due to project delays caused by design changes and more stringent environmental requirements, it is necessary to increase the contingency fund by $500,000; and WHEREAS, LADWP recommends approval of Amendment No. 1 to Contract No with Parkia, Inc. to extend the contract completion date to November 21, 2018, and to increase the contingency fund, for new total contract amount not to exceed $16,579,184, including contingency. NOW, THEREFORE, BE IT RESOLVED that Amendment No. 1 to Contract No. 7426, approved as to form and legality by the City Attorney, is hereby approved. 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 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 of LADWP. 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 Amendment to Contract No and this resolution. ITEM NO. 27 Authorizes Memorandum of Understanding with the Harbor Department to Fund Electrification Projects. Submitted by Chief Sustainability Officer, Senior Assistant General Manager Power System Engineering, Planning, and Technical Services and Chief Operating Officer. Determine item is exempt pursuant to CEQA Guidelines Section 15060(c)(3). RESOLUTION NO WHEREAS, Los Angeles Department of Water and Power (LADWP) proposes to enter into a Memorandum of Understanding (MOU) with the Los Angeles Harbor Department (LAHD) for transportation electrification projects through five years from the date of the Board of Water and Power Commissioner s (Board) adoption; and WHEREAS, LADWP and LAHD are departments within the City of Los Angeles; and WHEREAS, LAHD, through the San Pedro Ports Clean Air Action Plan and California Air Resources Board s (CARB) Sustainable Freight Strategy, will need to implement strategies to develop the infrastructure necessary for more efficient and zero emissions goods movement; and WHEREAS, LADWP voluntarily participates in CARB s Low Carbon Fuel Standard (LCFS) Program and is a covered entity under CARB s Greenhouse Gas Cap and Trade Program; and WHEREAS, LADWP has sold LCFS credits and California Carbon Allowances under the programs and received monetary proceeds from the sale of the credits and allowances; and WHEREAS, CARB rules require that proceeds from credit and allowance sales be used for specific purposes; and WHEREAS, LADWP will invest its proceeds toward transportation electrification projects that fulfill these requirements; NOW, THEREFORE, BE IT RESOLVED that LADWP proposes to enter into a MOU with LAHD in an amount not to exceed a total of up to $15 million for five years.

16 JUNE 12, 2018, 10:23 A.M. Page 16 BE IT FURTHER RESOLVED that the MOU, 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 Chief Accounting Employee of the LADWP, upon proper certification, is authorized and directed to draw demands on the sale of credits from the Power Revenue Fund, in accordance with the terms of this MOU 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 MOU for and on behalf of LADWP. ITEM NO. 30 Authorizes Agreement WR with the Los Angeles Department of Public Works, Bureau of Sanitation for the Initial Phase of the Groundwater Replenishment Project. Submitted by Senior Assistant General Manager Water System and Chief Operating Officer. In compliance with CEQA Guidelines Section (EIR previously adopted). RESOLUTION NO WHEREAS, Los Angeles Department of Water and Power (LADWP) proposes to enter into Agreement No. WR (Agreement) with Los Angeles Department of Public Works, Bureau of Sanitation (LASAN) for the Initial Phase of the Groundwater Replenishment (GWR) Project for a term of 5 years, with two 5 year renewal options, for a total term of 15 years, including options; and WHEREAS, LADWP and LASAN have partnered to implement the Initial Phase of the GWR Project to spread ozonated recycled water at the Hansen Spreading Grounds (HSG) for indirect potable reuse, supplementing the City's groundwater supply and working to meet the 2015 Urban Water Management Plan's goal to increase recycled water use to 75,400 acre feet per year (AFY) by 2040; and WHEREAS, LASAN will construct and operate ozone treatment units at the Donald C. Tillman Water Reclamation Plant, and LADWP will convey recycled water to HSG and perform groundwater monitoring to meet permit requirements; and WHEREAS, LASAN has reviewed the services to be provided and incorporated in this Agreement, and represents that it has the qualities, expertise, skills, and abilities to perform such work. NOW, THEREFORE, BE IT RESOLVED that LADWP proposes to enter into Agreement with LASAN in an amount not to exceed $6.6 million for capital improvements and $700,000 per year for operation and maintenance costs, with a two percent annual increase to account for inflation. 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 LASAN. BE IT FURTHER RESOLVED that 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 Chief Accounting Employee of the LADWP, upon proper certification, is authorized and directed to draw demands on the Water Revenue Fund, in accordance with the terms of this 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 Agreement for and on behalf of LADWP.

17 JUNE 12, 2018, 10:23 A.M. Page 17 ITEM NO. 31 Contract No for Ultraviolet Reactors and Granular Activated Carbon Vessels for North Hollywood West Wellhead Treatment Project. Award to Trojan Technologies Group ULC for a one time purchase and an amount not to exceed $10,348,779. Submitted by Senior Assistant General Manager Water System and Chief Operating Officer. In compliance with CEQA Guidelines Section , a Mitigated Negative Declaration was prepared for the North Hollywood West Well Field Water Treatment Project. RESOLUTION NO WHEREAS, through a single source bid process, the Los Angeles Department of Water and Power (LADWP) issued a solicitation to procure Ultraviolet Reactor and Granular Activated Carbon equipment for North Hollywood West Wellhead Treatment Project under Bid No. 7774; and WHEREAS, Trojan Technologies Group ULC is the single source bidder under Bid No NOW, THEREFORE, BE IT RESOLVED that Trojan Technologies Group ULC is awarded the contract for a total amount not to exceed $10,348,779, for a one time purchase, under Contract No BE IT FURTHER RESOLVED that Contract No. 7774, approved as to form and legality by the City Attorney, is hereby approved. 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 of Water and Power Commissioners (Board) are hereby authorized and directed to execute said contract for and on behalf of LADWP. BE IT FURTHER RESOLVED that the Chief Accounting Employee of the LADWP, upon proper certification, is authorized and directed to draw demands on the Water Revenue Fund, in accordance with the terms of the Contract awarded pursuant to Bid No and this Resolution. Seconded by Commissioner Levine and carried by the following vote: Ayes, Commissioners Funderburk, Jr., Noonan, Vasquez and President Levine; Noes, None. Commissioner Barad returned to the Board Room at 1:03 p.m. ITEM NO. 25 Authorizes Memorandum of Agreement with Los Angeles World Airports (LAWA) for Power Reliability at Los Angeles International Airport. Submitted by Senior Assistant General Manager Power System Engineering, Planning, and Technical Services and Chief Operating Officer. As stipulated in the MOU, LAWA will secure all necessary environmental clearances for Receiving Station X, including compliance with CEQA. Deferred. Deferral moved by Commissioner Barad. Seconded by Commissioner Levine and carried by the following vote: Ayes, Commissioners Funderburk, Jr., Barad, Noonan, Vasquez and President Levine; Noes, None.