Los Angeles, California, April 16, 2013

Transcription

1 Los Angeles, California, April 16, 2013 MINUTES OF REGULAR MEETING OF THE BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES HELD IN ROOM 1555-H APRIL 16,2013 1:41 P.M. Meeting called to order by Commissioner Jonathan Parfrey and roll called: Present - Commissioners: Absent- Jonathan Parfrey Christina E. Noonan Richard Moss Thomas Sayles Eric Holoman A quorum present. IN ATTENDANCE were the following: Ronald O. Nichols, Martin L. Adams, Aram H. Benyamin, Joseph Brajevich, Richard M. Brown, Sharon Grove, Randy S. Howard, Matthew M. Lampe, Nelson Liu, James B. McDaniel, Marvin D. Moon, Ann M. Santilli, Mark J. Sedlacek, Kevin J. Shost, William T. Van Wagoner, Michael S. Webster, Gary E. Wong, General Manager Director of Water Operations, Water System Senior Assistant General Manager - Power System, Power System Assistant General Counsel, Water and Power, City Attorney's Office General Counsel, Water and Power, City Attorney's Office Assistant General Manager - Customer Service, General Manager's Office Director ofpower System Planning & Development, Power System ChiefInformation Officer, Systems Support Division Power Engineering Manager, Power System Senior Assistant General Manager- Water System, Water System Director ofpower System Engineering, Power System Assistant ChiefFinancial Officer and Controller Accounting and Financial Reporting, Financial Services Organization Director ofenvironment and Efficiency Division, General Manager's Office Utility Services Manager, Customer Services Division Managing Utility Engineer, Water System Power Engineering Manager, Power System Assistant General Manager - Systems Support Division Also, in attendance: Mary Benson, Ellen Schneider, Varun Sivaram, Council District 7 Retired DWP Employee Mayor's Office ITEM NO.1 - Opening remarks were made by the Acting Commission President on agenda and other items relating to Department operations.

2 APRIL 16,2013, 1:41 P.M. Page 2 Written recommendation, approved by the General Manager, transmitting the following resolutions, approved as to form and legality by the City Attorney: ITEM NO Honors Ellen S. Schneider, Senior Utility Services Specialist, ofthe Power System Transmission and Distribution Division upon completion of40 years and 2 months of Department service. (presentation to be held) RESOLUTION NO WHEREAS, Ellen S. Schneider, Senior Utility Services Specialist, retired July 1,2012, after 40 years and 2 months ofproviding distinguished service with the Department ofwater and Power and the City oflos Angeles; and WHEREAS, Ellen S. Schneider began her career on January 11, 1971, as a Relief Commercial Service Representative with the Department ofwater and Power, she promoted to increasingly more responsible and diverse positions, including Commercial Service Representative, Customer Field Representative, Senior Customer Field Representative, Electric Station Operator, Residential Conservation Representative, Utility Marketing Representative, and Senior Utility Services Specialist; and WHEREAS, Ellen S. Schneider's commitment and diligence supervising electric rate applications, managing LADWP's economic development rates, and working as an economic development liaison expediting power service installations with the Mayors LA Business Team led to a special Commendation from Mayor Riordan for Outstanding Customer Service; and WHEREAS, Ellen S. Schneider's power distribution system and customer service knowledge benefited the Power System serving in the field working on complex metering and customer station drawings for the Transmission and Distribution Division; and WHEREAS, under Ellen S. Schneider's direction and management, Power System Transmission and Distribution has made significant progress in the areas ofmetering projects and identification and recovery ofcustomer billing errors. NOW, THEREFORE, BE IT RESOLVED, that the Board ofwater and Power Commissioners on behalf ofthe management ofthis Department, its employees, and the citizens ofthe City of Los Angeles, thank and commend Ellen S. Schneider for her service as a highly dedicated, motivated, and efficiency-oriented supervisor who was dedicated to assisting our internal staff and external customers and extends every best wish to her for a prosperous and enjoyable retirement. BE IT FURTHER RESOLVED, that a suitable copy ofthis resolution be presented to Ellen S. Schneider in appreciation and recognition ofher long and faithful service to the people of Los Angeles and to the Department ofwater and Power. Approval moved by Commissioner Moss. Seconded by Commissioner Noonan and carried by the following vote: Ayes, Commissioners Moss, Noonan, Acting President Parfrey; Noes, None. ITEM NO.2 - Presentation Recycled Water Customer ofthe Year A ward Gibson Ranch Presentation Given By: James McDaniel, DWP and Mary Benson, CD 7.

3 APRIL 16,2013, 1:41 P.M. Page 3 ITEM NO.3 - ReportlBriefing by the General Manager. ITEM NO.4 - Comments and/or requests from Commissioners were made during the Board meeting relating to Department operations. Commissioner Moss - Provide a presentation on the Department's strategy to reduce the principle on its debt. Commissioner Moss - Be more specific in describing the term "local" for the FiT50 Solar Program. In the RFP provide a definition of"local" with boundaries for the LA Basin. Commissioner Parfrey Similar to the previous solar programs, provide a follow-up report on how the FiT50 is proceeding. Commission Parfrey - Develop a policylbest practice on electric vehicle chargers for the multifamily dwellings. This should be the next policy hurdle for LADWP's EV policy and a consideration for the next Board. Commissioner Parfrey - Provide a report back on the status ofpublic EV charging at JFB. ITEM NO.5 - 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. Commissioner Parfrey moved adoption ofthe following 11 resolutions, approved as to form and legality by the City Attorney: ITEM NO.6 - Contract No. N-177 (Amendment No.1) with United Rentals North America, Inc. to provide the rental ofequipment essential for infrastructure replacement that supports both Systems Strategic Plans. The amendment will extend the contract by six months and no additional funding is required. Submitted by Senior Assistant General Manager Water System, Senior Assistant General Manager Power System and Assistant General Manager Systems Support Division. RESOLUTION NO WHEREAS, United Rentals North America, Inc. (United Rentals), formerly known as United Rentals Northwest, Inc., was awarded Contract No. N-177, for Rental, Bare, Intermittent, Trench Shoring and California Department oftransportation-approved Traffic Control Equipment; and WHEREAS, Los Angeles Department ofwater and Power's (LADWP) Water System recommends Amendment No.1 (Amendment) to Contract No. N-177 with United Rentals to extend the contract by six months from May 18,2013 to November 17,2013. No additional funding is required; and WHEREAS, this contract is totaling 39 months with United Rentals and this contract exceeds the time period set by ordinance. Therefore, City Council approval is required in accordance with City Charter Section 373; and WHEREAS, that pursuant to City Charter Section 1022, the Board finds that it is more feasible to have the work performed by outside services, because LADWP and the City do not have the equipment nor the expertise to perform the work proposed in the contract.

4 APRIL 16,2013,1:41 P.M. Page 4 NOW, THEREFORE, BE IT FURTHER RESOLVED that Amendment No. 1 to Contract No. N 177 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 ChiefAccounting Employee is hereby authorized and directed to draw demands upon the Water and Power Revenue Funds in accordance with the terms ofthis Amendment awarded pursuant to Contract No. N-177 and this resolution. 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 behalf ofladwp, after approval by the City oflos Angeles City Council pursuant to City Charter Section 373. ITEM NO.7 - Authorizes award ofspecification No. N-358 to Furnish Large and Small Double Disc Gate Valves to American RID for a total amount not to exceed $5,530,391 for a period ofone year with two optional one-year periods. Submitted by Senior Assistant General Manager - Water System and Assistant General Manager - Systems Support Division. RESOLUTION NO WHEREAS, through a competitive bid process the Los Angeles Department ofwater and Power (LADWP) sought to furnish and deliver double disc gate valves under Specification No. N-358; and WHEREAS, LADWP received two bids, both ofwhich were determined to be non-responsive; and WHEREAS, Kube Engineering (Kube) was the lowest bidder under Group I and second lowest bidder under Group II and Items 16 through 25; however, Kube failed to make a Good Faith Effort, did not submit required samples and certification, included exceptions to design and warranty in their manufacturer's literature, and offered non-nsf 61 certified valves, and therefore, no award could be considered to this firm; and WHEREAS, American RID was the second lowest bidder under Group I and lowest bidder under Group II and Items 16 through 25; however, American RID was found to be out ofcompliance with National Sanitation Foundation (NSF) 61 certification requirements for their proposed 4-inch double disc valves offered due to recent changes in NSF 61 certification requirements-all other valves proposed by American RID meet NSF 61 certification requirements; and WHEREAS, LADWP negotiated with American RID and American RID is actively redesigning and resubmitting samples oftheir 4-inch double disc gate valves to meet NSF 61 certification requirements-the LADWP will not order 4-inch double disc gate valves until NSF 61 certification is obtained by American RID; and WHEREAS, LADWP's Water System recommends a negotiated contract be awarded to American RID under Specification No. N-358. NOW, THEREFORE, BE IT RESOLVED that American RID is awarded a negotiated contract, for a total amount not to exceed $5,530,391.00, for a period ofone year with two optional oneyear periods, under Specification No. N-358, approved as to form and legality by the City Attorney and on file with the Secretary ofthe Board. BE IT FURTHER RESOLVED that the Chief Accounting Employee is hereby authorized and directed to draw demands upon the Water Revenue Fund in accordance with the terms ofthis contract awarded pursuant to Specification No. N-358 and this resolution.

5 APRIL 16,2013,1:41 P.M. Page 5 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 ofthe Board are hereby authorized and directed to execute said contract for and on behalf ofladwp. ITEM NO.8 - Authorizes award ofspecification No. 422Rl to Furnish Precast Concrete Substructures and Accessories to Jensen Precast for a total amount not to exceed $13,597,832 for a tenn of one year with two optional one-year periods. Submitted by Senior Assistant General Manager - Power System and Assistant General Manager - Systems Support Division. RESOLUTION NO WHEREAS, through a competitive bid process the Los Angeles Department of Water and Power (LADWP) sought to furnish and deliver substructures, precast concrete, and accessories under Specification No. 422Rl; and WHEREAS, Jensen Precast (Jensen) is the only bidder; and WHEREAS, LADWP's Power System recommends a contract be awarded to Jensen under Specification No. 422Rl. NOW, THEREFORE, BE IT RESOLVED that Jensen is awarded a contract, for a total amount not to exceed $13,597,832.00, for a period of one year with two optional one year periods, under Specification No. 422Rl, approved as to fonn and legality by the City Attorney and on file with the Secretary ofthe Board. BE IT FURTHER RESOLVED that the Chief Accounting Employee is hereby authorized and directed to draw demands upon the Power Revenue Fund in accordance with the tenns ofthis contract awarded pursuant to Specification No. 422Rl and this resolution. BE IT FUR THER 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 ofthe Board are hereby authorized and directed to execute said contract for and on behalf of LADWP. ITEM NO.9 - Authorizes award of Specification No. 441Rl to Furnish Inhibiting Insulating Oil for use in new electrical apparatus, primarily transfonners, reactors, circuit breakers, and regulators to Semper Fuel, LLC for a total amount not to exceed $4,079,250 for a period ofnine months with two optional one-year extensions. Submitted by Senior Assistant General Manager - Power System and Assistant General Manager - Systems Support Division. RESOLUTION NO WHEREAS, through a competitive bid process the Los Angeles Department of Water and Power (LADWP) sought to furnish and deliver inhibiting insulating oil under Specification No. 441Rl; and WHEREAS, Semper Fuel, LLC (Semper) is the lowest bidder; and WHEREAS, LADWP's Power System recommends a contract be awarded to Semper under Specification No. 441 Rl. NOW, THEREFORE, BE IT RESOLVED that Semper is awarded a contract, for a total amount not to exceed $4,079,250.00, for a period ofnine months with two optional one year extension, under Specification No. 441Rl, approved as to fonn and legality by the City Attorney and on file with the Secretary ofthe Board.

6 APRIL 16,2013,1:41 P.M. Page 6 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 contract awarded pursuant to Specification No. 441 R1 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 ofthe Board are hereby authorized and directed to execute said contract for and on behalfofladwp. ITEM NO.10 - Authorizes award ofspecification No. 484 to Furnish and Deliver Sodium Hypochlorite. to: A) Univar USA (Group 1-6) for a total amount not to exceed $1,399,480 for a term ofone year and one optional one-year period. B) JCI Jones Chemical (Group 7-8) for a total amount not to exceed $154,000 for a term ofone year with one optional one-year period. Submitted by Senior Assistant General Manager Water System, Senior Assistant General Manager Power System and Assistant General Manager - Systems Support Division. RESOLUTION NO WHEREAS, Univar USA (Univar), lowest responsive bidder under Group I and JCI Jones Chemical (JCI) the lowest under Group II under Specification No. 484, to furnish and deliver sodium hypochlorite; and WHEREAS, the Los Angeles Department ofwater and Power's (LADWP) Water System recommends award ofthis contract. NOW, THEREFORE, BE IT RESOLVED that Univar is awarded Contract No. 484(A) under Group ofitems 1 through 6 for a total not to exceed $1,399,480.00, for a one year with one optional one-year period and JCI is awarded Contract No. 484(B) under Group ofitems 7 and 8, for a total amount not to. exceed $154,000.00, for a one year with one optional one-year period under Specification No. 484, approved as to form and legality by the City Attorney and on file with the Secretary ofthe Board. BE IT FURTHER RESOLVED that the ChiefAccounting Employee ofladwp is hereby authorized and directed to draw demands upon the Water and Power Revenue Funds in accordance with the terms ofthis contract awarded pursuant to Specification No. 484 and this resolution. 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 contract for and on behalfofladwp. ITEM NO. 11-Authorizes award ofspecification No to Furnish and Deliver Welder Trucks and Trailer Mounted Welder to Los Angeles Truck Center LLC for a total amount not to exceed $1,786,085 for a one-time purchase. Submitted by Senior Assistant General Manager Power System, Senior Assistant General Manager Water System and Assistant General Manager Systems Support Division. RESOLUTION NO WHEREAS, through a competitive bid process the Los Angeles Department ofwater and Power (LADWP) sought to furnish and deliver welder trucks and a trailer mounted welder; and

7 APRIL 16,2013, 1:41 P.M. Page 7 WHEREAS, Los Angeles Truck Centers LLC (LATC), is the lowest bidder after applying the Local Business Preference Program discount under Specification No. 7392, to furnish and deliver welder trucks and a trailer mounted welder; and WHEREAS, LADWP'S Power System recommends a contract be awarded to LATC under Specification No NOW, THEREFORE, BE IT RESOLVED that pursuant to City Charter Section 1022, the Board finds that it is more feasible to have the work performed by outside services because it has been determined that the contractor has proprietary knowledge or equipment that LADWP needs. The proprietary knowledge will be transferred to LADWP personnel via expert Contractor-provided training sessions for the proper maintenance and operation ofthe equipment. BE IT FURTHER RESOLVED that LATC is awarded Contract No for a total amount not to exceed $1,786,085.00, for a one-time purchase; under Specification No. 7392, approved as to form and legality by the City Attorney and on file with the Secretary ofthe Board. BE IT FURTHER RESOLVED that the ChiefAccounting Employee is hereby authorized and directed to draw demands upon the Water & Power Revenue Funds in accordance with the terms ofthis contract awarded pursuant to Specification No and this resolution. 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 contracts for and on behalf ofladwp. ITEM NO Authorizes execution ofagreement No (Amendment No.2) with International Business Machines. The amendment will extend the contract term by six months and increase the agreement by $66,000. Submitted by Assistant General Manager - Systems Support Division. RESOLUTION NO WHEREAS, effective November 1,2009, Los Angeles Department ofwater and Power (LADWP) entered into Agreement No (which together with all amendments and supplements thereto hereinafter shall be referred to as the "Agreement") with International Business Machines, Corporation (hereinafter referred to as "IBM") for the maintenance ofibm mainframes, AIX systems, integrated software, and on-demand support services; and WHEREAS, there is a current need to have IBM continue to provide hardware maintenance and to maintain the equipment warranty while Request for Proposal is processed and a new contract is awarded; and WHEREAS, the Information Technology Services Division proposes Amendment No.2 to Agreement No with rum to increase the Agreement by $66,000 to a cumulative total of $1,928,554; and extend the Agreement for six (6) months from May 1, 2013 to October 31, 2013, for a total Agreement term of four (4) years; and WHEREAS, under Los Angeles Administrative Code Section 1 0.5(b )(2), Amendment No.2 to Agreement No will not require Los Angeles City Council approval. NOW, THEREFORE, BE IT RESOLVED that Amendment No.2 to Agreement No between LADWP and rum, approved as to form and legality by the City Attorney, and filed with the Secretary ofthe Board, be and the same is hereby approved.

8 APRIL 16,2013, 1:41 P.M. Page 8 BE IT FURTHER RESOLVED that pursuant to Charter Section 1022, the services can be performed more economically or feasibly by independent contractors than by City oflos Angeles employees due to the fact that the contractor has proprietary knowledge. 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 ofthe Board be and they are hereby authorized, empowered, and directed to execute said Amendment No.2 to Agreement No for and on behalf of LADWP. BE IT FURTHER RESOLVED that the Chief Accounting Employee ofladwp, upon proper certification, is authorized and directed to draw demands on both the Water Revenue Fund and the Power Revenue Fund in payment ofthe obligations arising under this amendment. ITEM NO Authorizes execution ofamendment No. 1 to Optical Fiber Lease Agreement (Agreement No. FO /2008) and Short Form IRU-Ol Lease Agreement (Agreement No. FO /2008) with CENIC to provide the Indefeasible Right ofuse ofcertain components of LADWP's fiber optic network. Submitted by Assistant General Manager - Systems Support Division. RESOLUTION NO WHEREAS, Optical Fiber Lease Agreement No. FO /2008 (Master Agreement) and Short Form IRU-Ol Lease Agreement No. FO /2008 (IRU-Ol Agreement), between Los Angeles Department of Water and Power (LADWP) and CENIC, authorized by Resolution No on May 6, 2008, grants CENIC the Indefeasible Right ofuse (IRU) ofcertain components of LADWP's fiber optic network which generated revenues that were deposited into LADWP's Power Revenue Fund; and WHEREAS, the five-year term ofthe Master Agreement and the IRU-Ol Agreement expires on May 6, 2013; and WHEREAS, the proposed Amendment No.1 to Optical Fiber Lease Agreement No. FO /2008 and Amendment No.1 to Short Form IRU-01 Lease Agreement No. FO /2008 will extend the automatic yearly renewal term up to May 6, 2018, subject to any market rate adjustment set by LADWP pursuant to Charter Section 607(b); and WHEREAS, the Board ofwater and Power Commissioners has the authority to approve Amendment No. 1 to Optical Fiber Lease Agreement No. FO /2008 and Amendment No. 1 to Short Form IRU-Ol Lease Agreement No. FO /2008 pursuant to Los Angeles Administrative Code Section 1 0.5( c); and WHEREAS, the Board ofwater and Power Commissioners finds that the optical fibers to be leased are not presently needed for LADWP purposes and the execution ofthe lease will not interfere with LADWP operations. NOW, THEREFORE, BE IT RESOLVED that the proposed amendments, Amendment No.1 to Optical Fiber Lease Agreement No. FO /2008 and Amendment No, 1 to Short Form IRU 01 Lease Agreement No. FO /2008, approved as to form and legality by the City Attorney arid filed with the Secretary ofthe Board, between LADWP and CENIC, be and the same are hereby approved. BE IT FURTHER RESOLVED that the President, or the Vice President ofthe Board, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, the Assistant Secretary, or the Acting Secretary ofthe Board be and they are hereby authorized and directed to execute said amendments, for and on behalfofladwp.

9 APRIL 16,2013, 1:41 P.M. Page 9 ITEM NO Authorizes acceptance ofan additional $797, and amending Resolution , as settlement for additional property damage loss to the Sylmar Switching Station, San Fernando and Foothill Hydro Plants and portions ofthe Cascades water system infrastructure. Submitted by ChiefFinancial Officer. RESOLUTION NO WHEREAS, this Memorandum ofunderstanding (MOU) is made and entered between Los Angeles Department of Water and Power (LADWP) and the Los Angeles Department of Public Works, Bureau of Sanitation (BOS), under which BOS will work with 3Di Incorporated (3Di) to create a unified constituent Web portal for BOS to partner with LADWP to automate the maintenance ofaccurate account management, and efficient service request resolution; and WHEREAS, this MOU is intended to facilitate a partnership between LADWP and BOS to use the knowledge previously gained when redesigning the LADWP Website as well as to build a service request system modeled after the LADWP self-service system, by replicating systems and extending integration technology already developed under Agreement No with 3Di; and WHEREAS, this MOU is limited to a budget ofsi,500,000 and a duration ofthree (3) years, effective February 28,2013 through February 27,2016; and WHEREAS, the Board ofpublic Works approved the MOU on March 3, NOW, THEREFORE, BE IT RESOLVED that the proposed MOU, approved as to form and legality by the City Attorney and filed with the Secretary ofthe Board, between Los Angeles Department ofwater and Power and the Los Angeles Department ofpublic Works, Bureau of Sanitation, is hereby approved. BE IT FURTHER RESOLVED that the ChiefAccounting Employee ofladwp, upon proper certification, is authorized and directed to draw demands on both the Water Revenue Fund and the Power Revenue Fund in payment ofthe obligations arising under the MOU. 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 ofthe Board be and they are hereby authorized and directed to execute the MOU between LADWP and BOS. ITEM NO Authorizes execution ofthe Functional Transfer ofthe Water System's (WXXX) Safety Engineering Function to the Joint System (lxxx). Submitted by Director of Human Resources and Senior Assistant General Manager - Water System. RESOLUTION NO BE IT RESOLVED that, pursuant to the specifications in the attached "Transfer Schedule A" listing the functional transfer ofthe Water System's safety engineering function to the Joint System, which are currently on file with the Board Secretary, the operational function separately identified in said transfer schedule, together with the position performing said function, the employee occupying said position, and the equipment required by said employee, shall be and are hereby transferred to the Joint System as identified in said transfer schedule, effective April 1, 2013 per the attached "Transfer Schedule A."

10 APRIL 16,2013, 1:41 P.M. Page 10 Transfer Schedule A Functional Transfer ofthe Safety Engineering Function from the Major System Designated Water (WXXX) to the Major System Desienated Joint (JXXX) Effective April 1,2013 TRANSFER OF SAFETY ENGINEEruNG FUNCTION OF THE WATER SYSTEM WATER OPERATIONS DIVISION TO THE JOINT SYSTEM CORPORATE SAFETY DIVISION Empl Name Class Code Class Title DDR Pos No. Org Code Bud/Sub Leland Gong 1727 Safety Engineer Bud FROM ORG CODE: FROM PAYROLL: TO: TO: ITEM NO. 18 Adopts Guidelines for the Special Election ofjoint System Active Members' Representative to the Board ofadministration ofthe Water and Power Employees' Retirement Plan. Submitted by Retirement Plan Manager. RESOLUTION NO RESOLUTION TO ADOPT GUIDELINES FOR THE SPECIAL ELECTION OF JOINT SYSTEM ACTIVE MEMBERS' REPRESENTATIVE TO THE BOARD OF ADMINISTRATION OF THE WATER AND POWER EMPLOYEES' RETIREMENT PLAN WHEREAS, a vacancy has occurred on the Board ofadministration ofthe Water and Power Employees' Retirement Plan (Retirement Board); and WHEREAS, the vacancy is a result ofan elected employee member representing the Joint System ofthe Department having retired from Department service; and WHEREAS, Article XI, Section (d) ofthe City Charter provides that an election shall be conducted whenever there is a vacancy ofan elected seat that has more than six months remaining before the expiration ofthe term; and WHEREAS, the term ofthe vacated seat will expire on May 1,2015; and WHEREAS, the Los Angeles City Clerk's Office staffhas conducted past elections based on the Rules and Regulations approved by the Board of Water and Power Commissioners ofthe City of Los Angeles (Board ofcommissioners); and WHEREAS, Section III A (3) ofthe Retirement Plan provides that rules and regulations governing the holding ofelections shall be prescribed by the Board ofcommissioners; and WHEREAS, the Retirement Board typically recommends Election Guidelines for consideration by the ofboard ofcommissioners; and

11 APRIL 16,2013, 1:41 P.M. Page 11 WHEREAS, prior to the most recent election ofemployee members to the Retirement Board, the Retirement Board, at its meeting on December 14,2011, reviewed, and recommended that the Board ofcommissioners adopt, the attached "Rules and Regulations Governing the Election of Active Employee Members to the Board ofadministration ofthe Water and Power Employees' Retirement Plan" (Election Rules and Regulations) as drafted by the Los Angeles City Clerk's Office; and WHEREAS, the Board ofcommissioners adopted such Election Rules and Regulations at its meeting held on February 7, NOW THEREFORE, BE IT RESOLVED, that the attached Election Rules and Regulations be and are hereby re-adopted. Seconded by Commissioner Noonan and carried by the following vote: Ayes, Commissioners Moss, Noonan, Parfrey; Noes, None. ITEM NO Approves the Memorandum ofunderstanding (MOU) between the Los Angeles Department ofwater and Power and the Los Angeles Department ofpublic Works, Bureau of Sanitation to create a unified constituent Web Portal. Submitted by Assistant General Manager Systems Support Division. RESOLUTION NO WHEREAS, this Memorandum ofunderstanding (MOU) is made and entered between Los Angeles Department ofwater and Power (LADWP) and the Los Angeles Department ofpublic Works, Bureau of Sanitation (BOS), under which BOS will work with 3Di Incorporated (3Di) to create a unified constituent Web portal for BOS to partner with LADWP to automate the maintenance ofaccurate account management, and efficient service request resolution; and WHEREAS, this MOU is intended to facilitate a partnership between LADWP and BOS to use the knowledge previously gained when redesigning the LADWP Website as well as to build a service request system modeled after the LADWP self-service system, by replicating systems and extending integration technology already developed under Agreement No with 3Di; and WHEREAS, this MOU is limited to a budget ofsi,500,000 and a duration ofthree (3) years, effective February 28,2013 through February 27,2016; and WHEREAS, the Board ofpublic Works approved the MOU on March 3, NOW, THEREFORE, BE IT RESOLVED that the proposed MOU, approved as to form and legality by the City Attorney and filed with the Secretary ofthe Board, between Los Angeles Department ofwater and Power and the Los Angeles Department ofpublic Works, Bureau of Sanitation, is hereby approved. BE IT FURTHER RESOLVED that the ChiefAccounting Employee ofladwp, upon proper certification, is authorized and directed to draw demands on both the Water Revenue Fund and the Power Revenue Fund in payment ofthe obligations arising under the MOU. 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 ofthe Board be and they are hereby authorized and directed to execute the MOU between LADWP and BOS.

12 APRIL 16,2013, 1:41 P.M. Page 12 Approval moved by Commissioner Moss. Seconded by Commissioner Noonan and carried by the following vote: Ayes, Commissioners Moss, Noonan, Parfrey; Noes, None. ITEM NO Authorizes execution ofamendments to Rule No.9 Rendering and Payment ofbills, ofthe Rules Governing Water and Electric Service for the Los Angeles Department of Water and Power, proration ofcustomers' bills. Submitted by Assistant General Manager Customer Service Division. RESOLUTION NO WHEREAS, the Department ofwater and Power ofthe City oflos Angeles (LADWP) desires amendment ofrule No.9, Rendering and Payment ofbills, ofthe Rules Governing Water and Electric Service, adopted by the Board ofwater and Power Commissioners ofthe City of Los Angeles (Board) under Resolution No. 56, dated September 8, 1983, and all amendments, revisions, and replacements thereof (Rules); and WHEREAS, the LADWP desires additional flexibility to avoid proration ofcertain monthly or bimonthly bills due to meter reading cycles that fallout ofthe respective standard 30-day or 60-day billing interval. NOW, THEREFORE, BE IT RESOLVED that Rule No.9, Section A.2., ofthe Rules is amended to read: "2. Proration ofbills Rate schedules stated on a monthly basis are related to a 30-day consumption interval as a standard month. Whenever actual meter read intervals differ from a standard 30-day period or multiples thereof, bills related thereto, computed from monthly schedules, are subject to proration on a 30-day basis. However, at the discretion ofthe Department, in computing and rendering regular bills, minor variances between actual read intervals and any established regular read interval need not be considered, in accordance with the following: a. Where bills are regularly rendered monthly, computation from monthly rate schedules may be made directly whenever actual read intervals are not more than five days greater or not more than five days lesser than the standard 30-day interval. b. Where bills are regularly rendered bi-monthly, computation from monthly rate schedules may be made on the basis ofmultiples oftwo (except as to electrical demand) ofthe stated rate schedules whenever actual read intervals are not more than eight days greater or not more than six days lesser than the standard 60-day interval. Charges for metered or unmetered services may be calculated on a daily, monthly, bimonthly, quarterly, semi-annually, or annual basis. Whenever a change ofthe charges under a rate schedule becomes effective, bills shall be prorated with respect to the effective date ofthe change. Ifa time-of-use meter is installed, bills shall not be prorated. Whenever possible, the change to a time-of-use,rate schedule shall be effective for the entire billing period during which the time-of-use meter recorded an entire billing period ofconsumption."

13 APRIL 16,2013,1:41 P.M. Page 13 BE RESOLVED that the amendment described in this resolution shall become effective upon the go-live date ofthe LADWP billing system currently in development, part ofthe LADWP's CISCON project. Approval moved by Commissioner Noonan. Seconded by Commissioner Moss and carried by the following vote: Ayes, Commissioners Moss, Noonan, Parfrey; Noes, None. ITEM NO Adopts the Hollywood-La Kretz Customer Service and Community Center Project including the Initial Study and Mitigated Negative Declaration. Submitted by Director of Environmental Affairs and Assistant General Manager - Customer Service. RESOLUTION NO WHEREAS, the Los Angeles Department ofwater and Power (LADWP) maintains customer service centers throughout the City oflos Angeles to make it more convenient for customers to pay their bills; and WHEREAS, the current LADWP customer service center serving the Hollywood community is small and outdated; and WHEREAS, the Hollywood community is in need oflocations suitable for community events and meetings; and WHEREAS, Los Angeles-based property owner and philanthropist Morton LaKretz donated the three parcels located on Cole A venue to LADWP; and WHEREAS, the Board ofwater and Power Commissioners ofthe City oflos Angeles (Board) accepted that property with the intention ofconstructing a customer service center and community center. NOW, THEREFORE, BE IT RESOLVED that the Board recognizes that a study was made ofthe environmental effects ofthe Hollywood La Kretz Customer Service and Community Center, including its construction and operation. This study is embodied in the Initial StudylMitigated Negative Declaration (ISIMND) on file with the Secretary ofthis Board and is incorporated in this Resolution, and made a part hereof. BE IT FURTHER RESOLVED that this Board makes the following further findings and determinations with respect to the proposed Project: An ISIMND was prepared and made available for public review from January 13,2011 to February 1,2011. The Notice ofintent (NOI) to Adopt a HIND was filed with the Los Angeles City and County Clerks on January 10,2011 and January 12,2011, respectively. Notice was also published in the Los Angeles Times on January 13,2011. Copies ofthe IS and NOI were sent to local agencies, neighborhood councils, and organizations. A copy ofthe ISIMND is on file with the Secretary ofthe Board as Attachment 1 to the Board letter. Copies ofthe NOI, mailing list, and proofof publication are on file with the Secretary ofthe Board as Attachment 2 to the Board letter. Two comment letters were received on the ISIM ND. These letters were submitted by the nearby property owners. The comment letters, along with staffresponses, are on file with the Secretary ofthe Board as Attachment 3 to the Board letter.

14 APRIL 16,2013, 1:41 P.M. Page 14 Additional letters regarding the proposed project were received after the close ofthe public comment period. These letters did not raise further environmental issues. These letters are on file with the Secretary ofthe Board as Attachment 4 to the Board Letter. BE IT FURTHER RESOLVED that a Mitigation Monitoring and Reporting Program (MMRP) has been developed to ensure implementation ofthe mitigation measures outlined in the ISIMND. The ISIMND, now before this Board, identifies the following potentially significant impact and proposed the following mitigation measure, over which LADWP will maintain oversight and act as monitoring agent: No. Impact Mitigation Measure Time Frame for Implementatio n Noise NOl-l Project construction could result in generation ofnoise levels in excess of standards established in the noise ordinance. During site clearing and excavation (the initial phase ofconstruction) the excavator, front-end loader and backhoe shall be fitted with mufflers, and that sound barriers be employed when working adjacent to the residences and day care center. During construction Responsible Monitoring Agency LADWP BE IT FURTHER RESOLVED that this Board finds that implementation ofthe mitigation measure will lessen the environmental effects ofthe proposed Project to a level of less than significant. BE IT FURTHER RESOLVED that this Board certifies that the ISIMND has been prepared in compliance with California Environmental Quality Act, that it has reviewed and considered the information contained in the ISIMND, and that the ISIMND reflects the independent judgment and analysis ofthis Board. BE IT FURTHER RESOLVED that this Board further finds that it has considered the public comments on the ISIMND and the responses of staff thereto, and finds on the basis ofthe whole record that there is no substantial evidence that the proposed Project may have a significant effect on the environment. BE IT FURTHER RESOLVED that this Board adopts the ISIMND, requires implementation of the mitigation measure, and adopts the MMRP. BE IT FURTHER RESOLVED that this Board approves the Hollywood La Kretz Customer Service and Community Center Project, authorizes its construction, and approves the payment for permit and mitigation costs associated with this Project. BE IT FURTHER RESOLVED that LADWP shall file a Notice of Determination with the Los Angeles County Clerk and the Los Angeles City Clerk within five working days after deciding to approve the project. BE IT FURTHER RESOLVED that the Environmental Affairs Section will be the custodian of the record ofproceedings for this Project. Approval moved by Commissioner Noonan. Seconded by Commissioner Moss and carried by the following vote: Ayes, Commissioners Moss, Noonan, Parfrey; Noes, None.

15 APRIL 16,2013, 1:41 P.M. Page 15 THE BOARD shall recess to closed session for a conference with legal counsel regarding: A. Existing litigation in the following matters: 1. City of Los Angeles v. Great Basin Unified Air Pollution Control District; California Air Resources Board; State of California, ex rei. State Lands Commission, et al., United States District Court, Eastern District ofcalifornia Case No. 1:12-at-00664, pursuant to Section (d)(1) ofthe California Government Code. 2. In re Great Basin Unified Air Pollution Control District Owens Lake Dust Control Revised Final 2011 Supplemental Control Requirements Determination, State ofcalifornia Air Resources Board, pursuant to Section (d)(i) ofthe California Government Code. 3. The People ofthe State ofcalifornia and Great Basin Unified Air Pollution Control District v. City oflos Angeles. Department ofwater and Power. et ai., Inyo County Superior Court Case No. SI CV PT , pursuant to Section (d)(1) ofthe California Government Code. 4. City oflos Angeles Acting By And Through The Los Angeles Department of Water and Power v. Mammoth Community Water District, Board ofdirectors ofthe Mammoth Community Water District, And Does 1-20, Inclusive, Mono County Superior Court Case No. CVII0142, pursuant to Section (d)(l) ofthe California Government Code. 5. Los Angeles Department ofwater and Power Claim File No , pursuant to Section (d)(I) ofthe California Government Code. 6. Los Angeles Department ofwater and Power Claim File No , pursuant to Section (d)(1) ofthe California Government Code. 7. San Diego County Water Authority v. City oflos Angeles Acting By and Through the Los Angeles Department ofwater and Power, Los Angeles Superior Court Case No. BS136663, pursuant to Section (d)(I) ofthe California Government Code. 8. San Diego County Water Authority v. Metropolitan Water Authority. Case No. CPF-IO and CPF , pursuant to Section (d)(I) ofthe California Government Code. B. Anticipated litigation in the following matters: 1. Discussion regarding significant exposure to litigation (2 cases), pursuant to Section (d)(2) ofthe California Government Code. 2. Discussion regarding initiation oflitigation (1 case), pursuant to Section (d)(4) ofthe California Government Code. MEETING RECESSED at 2: 17 p.m. MEETING RECONVENED at 2: 19 p.m.

16 APRIL 16,2013, 1:41 P.M. Page 16 Los Angeles, California, April 16, 2013 MINUTES OF CLOSED SESSION OF THE BOARD OF WATER AND POWER COMMISSIONERS OF THE CITY OF LOS ANGELES HELD IN ROOM 1555 APRIL 16,2013 2:19 P.M. Meeting called to order by Commissioner Jonathan Parfrey and roll called: Present - Commissioners: Absent- Richard Moss Christina E. Noonan Jonathan Parfrey Thomas A. Sayles Eric C. Holoman A quorum present. IN ATTENDANCE were the following: Ronald O. Nichols, Aram Benyamin, Joseph Brajevich, Richard M. Brown, Marvin D. Moon, James B. McDaniel, Eric Rosenblatt, Ann M. Santilli, Louis C. Ting, Gwendolyn W. Williams, General Manager Senior Assistant General Manager, Power System Assistant General Counsel, Water and Power, City Attorney's Office General Counsel, Water and Power, City Attorney's Office Power Engineering Manager, Water System Senior Assistant General Manager, Water System Deputy City Attorney, City Attorney's Office Assistant ChiefFinancial Officer and Controller Accounting and Financial Reporting Mechanical Engineer, Power System Director ofsupply Chain Services Also, in attendance: Varun Sivaram, Mayor's Office A CLOSED SESSION was held for a conference with legal counsel regarding: Anticipated litigation in the following matter: ITEM NO. 29Bl (1st case) - Discussion regarding significant exposure to litigation (2 cases), pursuant to Section (d)(2) ofthe California Government Code. Discussion held - no action taken. MEETING RECESSED at 2:32 p.m. MEETING RECONVENED TO OPEN SESSION at 2:34 p.m.

17 APRIL 16,2013,1:41 P.M. Page 17 Written recommendations, approved by the General Manager, transmitting the following resolutions, approved as to form and legality by the City Attorney: ITEM NO. 21- Authorizes execution ofagreement No with Kiewit Power Constructors to Engineer, Procure, and Construct the Balance ofplant and Install the Combustion and Steam Turbine Package provided under Agreement No with GE for the Scattergood Generating Station Unit 3 Repowering Project. The total amount not to exceed $507,030,836 and the term will not exceed five years. Submitted by Senior Assistant General Manager -Power System. RESOLUTION NO WHEREAS, under Ordinance No , approved by the Los Angeles City Council, LADWP is authorized to let a contract or contracts pursuant to a competitive-sealed proposal method, pennitting negotiations, for the design, engineering, procurement, and construction ofthe Scattergood Unit 3 Repowering Project (Project), based on the criteria established by the Ordinance. The Ordinance also authorizes a term not to exceed five years for each contract due to the complexity ofthe Project, the long lead time to fabricate major components, schedule uncertainties in the permitting process, and the possible inclusion ofextended warranties; and WHEREAS, Request for Proposals (RFP) No , was issued on March 30, 2012, to engineer, procure, and construct the Balance ofplant (BOP) facilities and install the combined-cycle unit and two simple-cycle units provided under Agreement No for the Project; and WHEREAS, two responsive proposals were received on October 5,2012, for RFP No ; and WHEREAS, based on the evaluation criteria and selection process presented in RFP No , Kiewit Power Constructors (KPC) was determined to be the highest evaluated contractor to provide the required services; and WHEREAS, KPC has reviewed the services to be provided in this Agreement, and represents that it has the qualifications, expertise, skills, and abilities to perform such work; and WHEREAS, LADWP proposes to enter into Agreement No with KPC to engineer, procure, construct the BOP facilities, and install the units and equipment provided under Agreement No for a term offive years in an amount not to exceed $507,030,836 including options and contingency funds; WHEREAS, the permit to construct and operate will be issued by South Coast Air Quality Management District on April 5, NOW, THEREFORE, BE IT RESOLVED that Agreement No approved as to form and legality by the City Attorney and filed with the Secretary ofthe Board, between LADWP and KPC, be and the same is hereby approved. BE IT FURTHER RESOLVED that pursuant to Los Angeles City Charter Section 1022, such services covered by Agreement No are for expert services to engineer, procure, and construct the BOP facilities and install the combined-cycle and two simple-cycle units provided under Agreement No , which requires knowledge and skills that can ~ performed more feasibly by an independent contractor than by City employees. BE IT FURTHER RESOLVED that the ChiefAccounting Employee, upon proper certification, is authorized and directed to draw demands on the Power Revenue Fund in payment ofthe obligations arising out ofagreement No for engineering, procuring, and constructing the BOP facilities and installing the units provided under Agreement No for the Scattergood Unit 3 Repowering Project.

18 APRIL 16,2013,1:41 P.M. Page 18 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 be and they are hereby authorized, empowered, and directed to execute Agreement No for and on behalfofladwp. Approval moved by Commissioner Noonan. Seconded by Commissioner Moss and carried by the following vote: Ayes, Commissioners Moss, Noonan, Parfrey; Noes, None. ITEM NO Authorizes execution offeed-in TariffProgram (FiT) - Additional Program for 50-MW oflocal Solar for the 150-MW FiT Program. Submitted by Senior Assistant General Manager Power System. RESOLUTION NO WHEREAS, the 2012 Integrated Resource Plan (IRP) recommends a 150 megawatt (MIN) Feedin Tariff (FiT) Program by 2016; and WHEREAS, on January 11, 2013, the Board adopted a 100-MW FiT Set Pricing Program (FiTlOO), as the first component ofthe 150 MW FiT Program, which satisfies the Los Angeles Department of Water and Power's (LADWP) obligation under Senate Bill 32 and Senate Bill 1332 (requiring publicly owned utilities to adopt a feed-in tariff); and WHEREAS, LADWP uses the term "FiT" for all local renewable energy projects within its service territory that are connected directly to the utility grid and 100 percent ofthe electricity is sold through a fixed price standard contract; and WHEREAS, on March 5, 2013, LADWP discussed Large Scale Solar combined with Local Solar for the additional 50 MW Fit Program (FiT50) with the Board; and WHEREAS, on December 28,2012, LADWP purchased from Nextera Energy Resources LLC, the Beacon Property and intellectual property, which included preliminary engineering designs, required technical and biological studies and an approved Conditional Use Permit; and WHEREAS, LADWP seeks to increase the use oflocally generated renewable energy throughout its service territory to mitigate transmission losses and work towards achieving the state mandated 33 percent Renewable Portfolio Standard (RPS) by 2020; and WHEREAS, LADWP desires to further expand its deployment oflocally generated renewable energy to systems that fill the void between LADWP's Solar Incentive Program for customerowned or leased net-metered systems and requests for proposals for large-scale out-of-basin systems; and WHEREAS, a variety oflocal stakeholders expressed strong interest in local renewable energy development to generate jobs and stimulate the local economy at several workshops held by LADWP representatives; and WHEREAS, LADWP seeks to bundle the development ofutility scale solar on the Beacon Property with in-basin solar projects in order to achieve a total of 150 MW oflocal renewable energy and to reduce the cost oflocal renewable energy.