Board of Public Utilities

City of Riverside Public Utilities Administrative Office 3750 University Ave. 3 Fl. Riverside, CA 92501 Board of Public Utilities 951-826-2135 Agenda Meeting Date: Monday, July 25, 2016 6:30 PM Art Pick Council Chamber Publication Date: Wednesday, July 13, 2016 3900 Main Street Riverside, CA 92522 MISSION STATEMENT The City of Riverside Public Utilities Department is committed to the highest quality water and electric services at the lowest possible rates to benefit the community The City of Riverside wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities, as required by 42 U.S.C. §12132 of the Americans with Disabilities Act of 1990. Any person who requires a modification or accommodation in order to participate in a meeting, should direct such request to the City's ADA Coordinator at (951) 826-5427 or TDD at (951) 826-5439 at least 72 hours before the meeting, if possible. SPEAKER CARDS—If you wish to address the Board of Public Utilities, please complete and submit a speaker card to the Secretary. Speaker cards can be found next to the Secretary. Speaker cards will be accepted until conclusion of public comment on the agenda item. In accordance with the Public Records Act, any information you provide on this form is available to the public. Agenda related writings or documents provided to the Board of Public Utilities are available for public inspection in a binder located in the lobby/meeting room while the Board of Public Utilities is in session. PLEDGE OF ALLEGIANCE TO THE FLAG The following information and recommendations pertaining to Riverside Public Utilities are submitted for your information and action: MINUTES 1 Approval of the minutes from the Board of Public Utilities regular meeting held on June 27, 2016. Attachments: draft 06-27-2016_Minutes City of Riverside Page 1 Board of Public Utilities Agenda July 25, 2016 CITIZENS PARTICIPATION 2 Public Comment Period - This is the portion of the meeting specifically set aside to invite your comments regarding any matters within the jurisdiction of the Riverside Public Utilities Board - Individual audience participation is limited to 3 minutes and you will be asked to state your name and city of residence. Please complete and submit a speaker card to the Board Secretary. CONSENT CALENDAR All matters listed under the CONSENT CALENDAR are considered routine by the Board of Public Utilities and may be enacted by one motion in the form listed below. There will be no separate discussion of these items unless, before the Board of Public Utilities votes on the motion to adopt, Members of the Board of Public Utilities or the Public Utilities General Manager, or his designee, request specific items be removed from the Consent Calendar for separate action. Removed consent items will be discussed immediately after adoption of the balance of the Consent Calendar. Electric Items 3 CABLE REJUVENATION PILOT PROJECT TO TEST THE TREATMENT OF UNDERGROUND ELECTRIC CABLE TO EXTEND ITS USEFUL LIFE – WORK ORDER NO. 1525067 FOR $449,000 That the Board of Public Utilities approve a capital expenditure of $449,000 for Work Order No. 1525067 which includes all design, construction, contract administration, and inspection costs for the Cable Rejuvenation Pilot Project. Attachments: Report Other Items 4 THE UNIVERSITY OF CALIFORNIA RIVERSIDE’S PROPOSAL FOR RIVERSIDE PUBLIC UTILITIES’ WATER INNOVATIONS GRANT TO FUND RESEARCH FOR ELECTRO-OXIDATIVE ROUTE TOWARDS NITRATE REMOVAL FROM DRINKING WATER RESOURCES USING ACTIVATED CARBON AS ELECTROACTIVE SUBSTRATE IN THE AMOUNT OF $50,000 That the Board of Public Utilities recommend to the City Council approve the University of California, Riverside request for a Water Innovations Grant in the amount of $50,000 to be paid in three installments funded in Fiscal Year 2016-17, to research Electro-oxidative Route towards Nitrate Removal from Drinking Water Resources using Activated Carbon as Electroactive Substrate. Attachments: Report Agreement City of Riverside Page 2 Board of Public Utilities Agenda July 25, 2016 5 THIRD AMENDMENT TO THE AGREEMENT WITH BAKER TILLY VIRCHOW KRAUSE, LLP FOR PROFESSIONAL CONSULTANT SERVICES FOR AN EXAMINATION AND PERFORMANCE AUDIT EXTENDING THE TERM OF THE AGREEMENT TO OCTOBER 1, 2016 That the Board of Public Utilities approve the Third Amendment to the Professional Service Agreement with Baker Tilly Virchow Krause, LLP for the performance audit to extend the term through October 1, 2016. Attachments: Report Amendment DISCUSSION CALENDAR This portion of the Board of Public Utilities Agenda is for all matters where staff and public participation is anticipated. Individual audience participation is limited to 3 minutes. 6 PUBLIC UTILITIES FINANCIAL AND PERFORMANCE AUDITS PREPARED BY BAKER TILLY VIRCHOW KRAUSE, LLP – REVIEW OF CONSULTANTS’ FINDINGS AND RECOMMENDATIONS That the Board of Public Utilities recommend that the City Council: 1. Review the findings and recommendations of the external auditor on the City Council directed Performance Audit; 2. Review the findings and recommendations of the external auditor on the City Council directed Financial Audit; 3. Receive and file staff’s initial assessment of the findings and recommendations; and 4. Direct staff to return in September 2016 with an Action Plan. (presentation by Kevin Milligan – 15 min) Attachments: Report Baker Tilly Performance Audit of RPU Baker Tilly Financial Review of Expenditures for RPU Financial Review Response Performance Audit Response Presentation City of Riverside Page 3 Board of Public Utilities Agenda July 25, 2016 7 UPDATE ON THE ICE ENERGY PEAK LOAD REDUCTION PILOT PROGRAM That the Board of Public Utilities receive and file this update on the Ice Energy Peak Load Reduction Pilot (Peak Load Reduction) Program. (presentation by Mike Bacich – 10 min) Attachments: Report Goods and Services Contract Summary Report of Year 1 PLR Program Presentation 8 REJECTION OF BIDS FOR THE JACKSON STREET RECYCLED WATER PIPELINE PROJECT (PHASE 1), BID NO. RPU-7377 That the Board of Public Utilities reject all bids for the Jackson Street Recycled Water Pipeline Project (Phase 1), Bid No. RPU-7377. (presentation by Todd Jorgenson – 5 min) Attachments: Report Presentation 9 PROFESSIONAL SERVICES AGREEMENT, FROM REQUEST FOR PROPOSAL 1564, WITH SCHNEIDER ELECTRIC USA, INC. OF SAN DIEGO, CA, FOR THE SUBSTATION SWITCHGEAR UPGRADE PROJECT FOR $4,349,740 AND APPROVAL OF WORK ORDER NO. 1601400 FOR $5,530,000 That the Board of Public Utilities: 1. Approve a Professional Services Agreement in the amount of $4,349,740 to Schneider Electric USA, Inc. of San Diego, California, for the Substation Switchgear Upgrade Project; and 2. Approve Work Order No. 1601400 in the amount of $5,530,000. (presentation by Pat Hohl – 5 min) Attachments: Report Agreement Presentation City of Riverside Page 4 Board of Public Utilities Agenda July 25, 2016 10 CITY-WIDE STREETLIGHT LIGHT EMITTING DIODE CONVERSION PROGRAM – (PHASE ONE - DESIGN) APPROVAL OF WORK ORDER 1611216 FOR $1,150,000; PROFESSIONAL SERVICES AGREEMENT WITH DESIGN SERVICES, INC. DBA BENYA BURNETT CONSULTANCY RFP #1569, FOR $855,290; PERMISSIBLE USE OF GREENHOUSE GAS ALLOWANCE VALUE AND PROCEEDS POLICY AND AUTHORIZE USE OF GREEN HOUSE GAS ALLOWANCES FOR QUALIFYING PROJECTS That the Board of Public Utilities recommend the City Council: 1. Approve Work Order No. 1611216 in the amount of $1,150,000 for the development of a City-wide Streetlight LED Conversion Program; 2. Approve the Professional Services Agreement with Design Services Inc. dba Benya Burnett Consultancy of Davis California, for the development of a City-wide Streetlight LED Conversion Program in the amount of $855,290; 3. Approve the Permissible Use of Greenhouse Gas Allowance Value and Proceeds Policy (“Policy”) as reflected in this report; 4. Authorize the City Manager, or his designee, to make changes to the Policy in accordance with the goals of Assembly Bill 32, as enacted in 2006, for the benefit of Riverside’s retail electric ratepayers; and 5. Authorize the City Manager, or his designee, to attest and file the annual Electric Distribution Utility Use of Allocated Allowance Form with the California Air Resources Board. (presentation by Pat Hohl – 10 min) Attachments: Report Agreement Policy on Permissible Use of Green House Gas Allowance Value and Proceeds proposed Presentation BOARD MEMBER/STAFF COMMUNICATIONS 11 SYSTEMATIC REPORTING ON MEETINGS/CONFERENCES/SEMINARS BY BOARD MEMBERS AND/OR STAFF 12 ITEMS FOR FUTURE BOARD OF PUBLIC UTILITIES CONSIDERATION AS REQUESTED BY A MEMBER OF THE BOARD OF PUBLIC UTILITIES City of Riverside Page 5 Board of Public Utilities Agenda July 25, 2016 GENERAL MANAGER’S REPORT 13 Aliso Canyon Update 14 Open Work Orders over $200,000 and Closed Work Orders – Summary Report for June 2016 Attachments: Report 15 Electric / Water Contract Panel Update – June 2016 Attachments: Report 16 SCPPA Miscellaneous Billings – June 2016 Attachments: Report 17 City Council Agendas – July 12, 2016 Attachments: CC Agenda 07-12-16 18 Upcoming Meetings Attachments: Report 19 Electric / Water Utility Acronyms Attachments: Report 20 Quarterly Board of Public Utilities Attendance Report – April, May, and June 2016 Attachments: Report MISSION STATEMENT The City of Riverside is committed to providing high quality municipal services to ensure a safe, inclusive, and livable community. City of Riverside Page 6