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, April 10, 2017 6:30 PM Art Pick Council Publication Date: Wednesday, March 29, 2017 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: City of Riverside Page 1 Board of Public Utilities Agenda April 10, 2017 PRESENTATIONS 1 EMPLOYEE RECOGNITION AWARD TO THE PROJECT TEAM FOR THE WATER ASSET MANAGEMENT PROJECT - CONTINUED That the Board of Public Utilities recognize Toni Redman, Senior Engineering Aide, Paul Shouse, Senior Business Systems Support Analyst, and Marc Smith, Utilities Analyst for their excellent work on the Water Asset Management Project. (presentation by Girish Balachandran – 10 min) Attachments: Report CITIZENS PARTICIPATION 2 Public Comment Period - This is the portion of the meeting specifically set aside to invite your comments regarding Consent Calendar items and 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. Minutes 3 Approval of the minutes from the Board of Public Utilities regular meeting held on March 13, 2017. Attachments: 03-13-2017_draft minutes City of Riverside Page 2 Board of Public Utilities Agenda April 10, 2017 Board Attendance 4 EXCUSE BOARD CHAIR DAVE AUSTIN'S ABSENCE FROM THE REGULAR MEETING OF THE BOARD OF PUBLIC UTILITIES ON FEBRUARY 27, 2017 That the Board of Public Utilities excuse Board Chair Dave Austin's absence from the Board of Public Utilities meeting of February 27, 2017 due to his attendance at the APPA 2017 Legislative Rally in Washington DC on behalf of the Board. Attachments: Report Electric Items 5 AWARD BID NO. 1319813-17RPU FOR THE CONDUIT AND CABLE REPLACEMENT CANYON CREST AREA CIRCUIT 1218 AREA 1D PROJECT TO ASPLUNDH CONSTRUCTION CORPORATION OF ANAHEIM, CALIFORNIA, IN THE AMOUNT OF $329,738.50 - APPROVE WORK ORDER NO. 1319813 FOR $967,000 That the Board of Public Utilities: 1. Award Bid No. 1319813-17RPU for the Conduit and Cable Replacement Canyon Crest Area Circuit 1218 Area 1D Project, to the lowest responsive bidder Asplundh Construction Corp., Anaheim, California, in the amount of $329,738.50; and 2. Approve Work Order No. 1319813 in the amount of $967,000. Attachments: Report Bid Award Recommendation Presentation 6 CHANGE ORDER TO PURCHASE ORDER NO. 171202 WITH CG POWER SYSTEMS OF WASHINGTON, MISSOURI FOR ADDITIONAL STOCK OF DISTRIBUTION TRANSFORMERS FOR $347,535 That the Board of Public Utilities approve the change order and capital expenditure of $347,535 for Purchase Order No. 171202, to purchase 24 pad-mounted, distribution transformers of various sizes to replenish stocking levels for summer 2017. Attachments: Report City of Riverside Page 3 Board of Public Utilities Agenda April 10, 2017 Water Items 7 CONSTRUCTION OF THE MAGNOLIA AVENUE AND RAMONA DRIVE WATER DISTRIBUTION MAIN REPLACEMENT PROJECT – AWARD OF BID NO. RPU-7464 TO SULLY-MILLER CONTRACTING CO. OF BREA, CALIFORNIA, IN THE AMOUNT OF $1,984,777 – APPROVE WORK ORDER NO. 1107917 FOR $2,704,000 That the Board of Public Utilities: 1. Award a contract for the construction of the Magnolia Avenue and Ramona Drive Water Distribution Main Replacement Project – Bid No. RPU-7464 to the lowest responsive and responsible bidder, Sully-Miller Contracting Co. of Brea, California, in the amount of $1,984,777; and 2. Approve the capital expenditure of $2,704,000 for Work Order No. 1107917, which includes all design, construction, paving, contract administration, inspection and construction contingency costs for the Magnolia Avenue and Ramona Drive Water Distribution Main Replacement Project. Attachments: Report Bid Award Presentation 8 SHAREHOLDER PROXY AUTHORITY FOR THE TRUJILLO WATER COMPANY That the Board of Public Utilities approve and recommend that the City Council confirm the voting representatives and alternates outlined in the report and delegate authority to any designated representative or alternate to vote the City’s shares as the City’s proxy at all meetings of the Trujillo Water Company. Attachments: Report Attachment City of Riverside Page 4 Board of Public Utilities Agenda April 10, 2017 Other Items 9 APPROVE THE EXPENDITURES FOR THE CITY OF RIVERSIDE’S COMPUTRONIX PERMIT SOFTWARE UPGRADE PROJECT, INITIAL ALLOCATION OF $135,915 FROM WATER AND $332,756 FROM ELECTRIC, AND AN INCREASED AMOUNT FOR ADDITIONAL SOFTWARE SERVICES FOR THE WATER DEPARTMENT NOT TO EXCEED $119,050 That the Board of Public Utilities approve the initial expenditures for the City Computronix permit software upgrade project, of which the Water and Electric Department’s initial share allocation was $135,915 and $332,756, respectively; and an increased amount, not to exceed $119,050, for additional software services for the Water Department. Attachments: Report 10 THREE-YEAR SOFTWARE SERVICE AGREEMENT WITH BABCOCK & WILCOX POWER GENERATION GROUP, INC. FOR TECHNICAL SOFTWARE SUPPORT SERVICES IN THE AMOUNT OF $86,790 That the Board of Public Utilities: 1. Approve the three-year software service agreement (S2016_115r5) with Babcock & Wilcox Power Generation Group, Inc. in the amount of $86,790 for technical software support; 2. Authorize the City Manager, or his designee, to execute the software service agreement S2016_115r5 with Babcock & Wilcock Power Generation Group, Inc.; and 3. Authorize the City Manager, or his designee to execute any future amendments or extensions to the Service Agreement under the same price and terms and conditions. Attachments: Report Agreement Presentation City of Riverside Page 5 Board of Public Utilities Agenda April 10, 2017 11 ACTION PLAN UPDATE FOR THE FISCAL YEAR 2016 PERFORMANCE ASSESSMENT AND FINANCIAL EXPENDITURE AUDIT BY BAKER TILLY AND ORGANIZATIONAL ASSESSMENT BY HOMETOWN CONNECTIONS That the Board of Public Utilities receive and file this report updating the action plans for: 1. Fiscal Year 2016 Performance Assessment and Financial Expenditure Audit by Baker Tilly; and 2. Organizational Assessment by Hometown Connections. Attachments: Report Action Plan Presentation 12 FOURTH AMENDMENT TO TEMPORARY REVOCABLE LICENSE AGREEMENT WITH BEST BEST & KRIEGER LLP – MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 110 – MONTH TO MONTH TEMPORARY LICENSE AGREEMENT FOR $3,250 PER MONTH That the Board of Public Utilities recommend that the City Council: 1. Approve the Fourth Amendment to Temporary Revocable License Agreement with Best Best & Krieger LLP; and 2. Authorize the City manager, or his designee, to execute the Fourth Amendment to Temporary Revocable License Agreement, including making minor, non-substantive changes, and to sign all documents and instruments necessary to complete the transaction. Attachments: Report Attachment City of Riverside Page 6 Board of Public Utilities Agenda April 10, 2017 13 APPROVAL OF RESOLUTIONS AUTHORIZING LETTERS OF CREDIT RENEWAL OF 2008A ELECTRIC REVENUE BONDS OF $70,540,000 AND 2008C ELECTRIC REVENUE BONDS OF $41,975,000, REMARKETING OF 2011A ELECTRIC REVENUE BONDS FOR $41,925,000, AND APPROVAL OF FINANCING COSTS USING PUBLIC FINANCIAL MANAGEMENT, AS THE FINANCIAL ADVISOR FOR $22,500, STRADLING YOCCA CARLSON & RAUTH AS BOND AND DISCLOSURE COUNSEL FOR $40,000 FOR THE CITY, MCDERMOTT WILL & EMERY, LLP REPRESENTING BARCLAYS FOR THE LETTER OF CREDIT FACILITIES AND CHAPMAN AND CUTLER, LLP REPRESENTING WELLS FOR THE DIRECT PLACEMENT TRANSACTION FOR A TOTAL OF $37,000 FOR BOTH FIRMS That the Board of Public Utilities recommend that the City Council: 1. Adopt resolution authorizing the replacement of the 2008C letter of credit and the extension of the 2008A letter of credit under substantially similar terms for a period of four years, authorizing the execution of a remarketing agreement with Barclays for the 2008A Electric Revenue Bonds; and 2. Adopt resolution authorizing a remarketing of the 2011A Electric Revenue Bonds (including amending Resolution No. 22193 and the related Continuing Covenant Agreement); and 3. Authorize the City Manager, or designee, to execute all documents related to these actions and to make non-substantive revisions to those documents as needed; and 4. Approve and authorize expenditures for the use of Public Financial Management, Inc., as the City’s Financial Advisor, Stradling Yocca Carlson & Rauth as the City’s bond and disclosure counsel, and reimburse Barclays Bank, PLC and Wells Fargo Bank for legal costs associated with their transactions. Attachments: Report R - 2008A and 2008C R - 2011A Presentation Amendment Agreement - 2008A LOC Extension Remarketing Agreement - 2008A Supplement to Remarketing Memorandum - 2008A Reimbursement Agreement - 2008C Barclays Fee Letter - 2008C Amendment to Remarketing Agreement - 2008C Limited Reoffering Supplement No. 1 to Official Statement Second Amendment to Continuing Covenant Agreement City of Riverside Page 7 Board of Public Utilities Agenda April 10, 2017 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. 14 ESTABLISH UNIFORM RENTAL FEES FOR USE OF UNDEVELOPABLE RIVERSIDE CANAL AND GAGE CANAL PARCELS AND APPROVE CANAL USE MASTER LICENSE AGREEMENT – NEW REVENUE DEPENDENT UPON FUTURE CANAL PARCEL USE That the Board of Public Utilities recommend that the City Council: 1. Approve the establishment of a set rental rate for the use of undevelopable Canal Parcels at $0.15 per square foot for Open Space and Single Family Residential adjacent zoned properties and $0.60 per square foot for all other adjacent zoned properties, with a minimum $300 per license; 2. Approve an annual 2% escalation of the rate for licensed uses; 3. Authorize the City Manager, or his designee, to execute Canal Use License Agreements for undevelopable Canal Parcels under the terms set forth in this staff report; and 4. Direct staff to return every 5 years to update the rental rates and fees. (presentation by Kevin Milligan – 10 min) Attachments: Report Master License Agreement Presentation 15 2017 Q1 STATE AND FEDERAL LEGISLATIVE UPDATE ON ISSUES POTENTIALLY IMPACTING CITY OF RIVERSIDE PUBLIC UTILITIES OPERATIONS That the Board of Public Utilities receive and file a legislative update covering state and federal legislative matters. (presentation by Robert Ennis – 10 min) Attachments: Report Presentation City of Riverside Page 8 Board of Public Utilities Agenda April 10, 2017 BOARD MEMBER/STAFF COMMUNICATIONS 16 SYSTEMATIC REPORTING ON MEETINGS/CONFERENCES/SEMINARS BY BOARD MEMBERS AND/OR STAFF 17 ITEMS FOR FUTURE BOARD OF PUBLIC UTILITIES CONSIDERATION AS REQUESTED BY A MEMBER OF THE BOARD OF PUBLIC UTILITIES GENERAL MANAGER’S REPORT 18 Safety Update 19 City Council / Committee Agendas – March 14, 2017, March 21, 2017, and March 28, 2017 Attachments: CC Agenda 03-14-2017 CC Agenda 03-21-2017 CC Agenda 03-28-2017 20 Water Highlights – February 2017 Attachments: Report 21 Monthly Power Supply Report – February 2017 Attachments: Report 22 Financial Statements – January 2017 Attachments: Report 23 Open Work Orders over $200,000 and Closed Work Orders – Summary Report for February 2017 Attachments: Report 24 SCPPA Miscellaneous Billings – January 2017 Attachments: Report 25 SCPPA Monthly Agenda I Minutes – February 16, 2017 Attachments: SCPPA Agenda_Minutes 2-16-2017 City of Riverside Page 9 Board of Public Utilities Agenda April 10, 2017 26 Electric / Water / Consultant Contract Panel Update as of March 2017 Attachments: Consultant Panel ED Contractors Panel Water Civil Water Paving 27 Upcoming Meetings Attachments: Report 28 Electric / Water Utility Acronyms 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 10